Lendlease Group · ASX:LLC

Lendlease — FY2025 Earnings Presentation

68 slides from Lendlease's earnings presentation, Aug 18, 2025

  1. Slide 1: Lendlease Group 2025 Full Year Results Announcement, Presentation and Appendix

    18 August 2025 Lendlease Group 2025 Full Year Results Announcement, Presentation and Appendix Lendlease Group today announced its results for the full year ended 30 June 2025. Attached is the FY25 Results Announcement, Presentation and Appendix. ENDS FOR FURTHER INFORMATION, PLEASE CONTACT: Investor

  2. Slide 2: Significant progress on turnaround; return to profitability, distribution up 44%; positioned for growth

    18 August 2025 Significant progress on turnaround; return to profitability, distribution up 44%; positioned for growth Lendlease has achieved significant progress since its May 2024 strategy update, simplifying the Group and positioning the business for sustainable growth and returns above the Group

  3. Slide 3: Group CEO commentary, financials and securities buyback

    Group Chief Executive Officer, Tony Lombardo said: “Our FY25 result reflects significant progress in simplifying the Group and refocusing on our core capabilities across Investments, Development and Construction, to drive long-term value for securityholders. “As we move into FY26, we will continue t

  4. Slide 4: Segment results: Investments, Development, Construction

    Investments • Segment Operating EBITDA of $313m was up 69%, led by the Vita Partners joint venture, partially offset by lower FUM-related fees and co-investment distributions • Funds under management (FUM) increased 3% to $48.9b, including $2.8b of new develop-to- core product and the Aurora Place m

  5. Slide 5: Outlook

    Outlook 6 FY26 will mark a planned transition year for Lendlease. FY26 IDC EPS is anticipated to be 28–34 cents, with fewer scheduled development completions. FY25 IDC EPS was 50.1 cents, driven by major development completions including One Sydney Harbour towers two and three. A strong visibility t

  6. Slide 6: Appendix: Capital recycling progress since May 2024

    Appendix: Capital recycling progress since May 2024 Asset Value 7 Status Australian Communities (12 projects) $1,060m Sale completed US Military Housing $516m Sale completed Sale of Asia Life Sciences assets $170m Sale completed The Crown Estate JV $300m+ Sale announced 8 International Land and Inve

  7. Slide 7: Full Year Results 2025

    2025 Full Year Results 18 August 2025 One Sydney Harbour Sydney, Australia

  8. Slide 8: Acknowledgement of Country

    2 Acknowledgement of Country As an investor, developer, builder and manager of assets on land across Australia, we pay our respects to the Traditional Owners, especially their Elders, past and present, and value their custodianship of these lands.

  9. Slide 9: Our Strategic Progress

    3 Our Strategic Progress

  10. Slide 10: Turning Strategy into Results

    4 Turning Strategy into Results Delivering on our commitments May 2024 strategy commitments What we have delivered Restructuring the • Exceeded $125m cost target; $141m1 of savings achieved and $50m of further savings identified for FY26 0-12 1 organisation and months On time • Removed regional mana

  11. Slide 11: Our FY25 performance

    5 Our FY25 performance Improved operating performance; return to Operating and Statutory Profit $386m Operating profit after tax1 • Operating Profit after Tax (OPAT) in FY25 of $386m ‒ Investments up $123m, led by profits from Vita Partners life sciences joint venture 23.0cps2 ‒ Development up $99m,

  12. Slide 12: Return to profitability

    6 Return to profitability Segment EBITDA from core IDC Segments of $662m, up 49 per cent, contributing 50.1cps1 to Group EPS Investments Development Construction 2H FY25 EBITDA margin Investment Management EBITDA Operating EBITDA margin of 24%, EBITDA margins increased to 40.6% stable on FY24 improv

  13. Slide 13: Performance and Operations

    7 Performance and Operations

  14. Slide 14: Investments

    8 Investments 1 An international investment management platform focused on active management and performance Operating performance Investment management platform ($b) Investment management 5% • Funds Under Management increased 3% to $48.9b: 7% Workplace − Includes new FUM of $2.8b, partially offset

  15. Slide 15: Development

    9 Development 1 Strong sales progress, completions and pipeline replenishment Operating performance Australian Development activity ($b) Current pipeline 10.3 Completions 9.2 • Development pipeline $9.8b; Work in Progress $6.3b Commencements • $2.3b of completions, $0.9b of commencements 7.5 WIP 6.3

  16. Slide 16: Construction

    10 Construction 1 Improved operating performance in 2H25; strong workbook to support future revenues Operating performance FY25 Backlog revenue 2 FY25 revenue of $3.0b, down from $3.4b Social infrastructure 9% 1% • Revenue lower versus FY24 due to a number of large projects completing in FY24 and De

  17. Slide 17: Financial Performance

    11 Financial Performance

  18. Slide 18: Financial performance – Group

    12 Financial performance – Group 1 Group commentary $m FY242 FY25 Investments 185 313 Segment Operating EBITDA • Earnings increased to $1,041m from a loss of $(328)m in FY24, primarily from the absence Development 198 316 of strategy related impairments and restructuring charges Construction 60 33 •

  19. Slide 19: Financial performance – IDC Segments

    13 Financial performance – IDC Segments 1 Investments ($m) FY242 FY25 Investments Management revenue 242 219 • Total EBITDA of $313m increased 69%, led by the establishment of the Vita Partners Joint Venture Management EBITDA 97 89 and subsequent portfolio acquisition Co-investment EBITDA 93 81 • Ma

  20. Slide 20: Financial performance – Capital Release Unit

    14 Financial performance – Capital Release Unit 1 CRU commentary Capital Release Unit ($m) FY242 FY25 International Development EBITDA (335) (6) • Key commercial and financial outcomes Australian Communities EBITDA 48 167 − Released $2.3b of capital from CRU recycling initiatives out of a total of $

  21. Slide 21: Cost out targets achieved

    15 Cost out targets achieved 1 Statutory disclosures on overhead costs Overhead cost savings achieved In FY25, net overheads reduced from $537m in FY24 to $466m, driven by a reduction in Note 7 – financial statements employee, technology and leasing costs $m FY22 FY23 FY24 FY25 $ change1 Total emplo

  22. Slide 22: Net debt

    16 Net debt Net Debt1 ($b) Cash flow movements • Investments: 21 Moorfields recycling and operating cash flows Investments, Development CRU • Development: net cash inflow of $0.3b with apartment and Construction settlements and Capella Capital sale profits partially offset by planned spend on Austra

  23. Slide 23: Group debt and liquidity

    17 Group debt and liquidity Treasury overview Capital and liquidity management FY24 FY25 • FY25 Group gearing of 26.6% reflects delayed CRU transaction timing, the unwind of Net debt $m 3,176 3,433 negative Construction working capital in Australia and FX translation Average proportion of fixed debt

  24. Slide 24: Outlook and Strategy

    Ne Outlook and Strategy @

  25. Slide 25: FY26 Financial Outlook

    19 FY26 Financial Outlook 1 Lendlease is focused on growing and improving the performance of its IDC segments, while balancing value realisation and speed of execution within CRU Earnings 1 Capital and Costs EPS contribution from IDC of 28 to 34 cents Targeting ~$2.0b of CRU capital recycling in FY2

  26. Slide 26: Positioned for growth

    20 Positioned for growth Available capital released from CRU of ~$2.5b1 to be invested in core operations, returning above our cost of equity Investment Management Development Construction An active international manager, entrusted to A city shaping developer creating Australia’s trusted deliver per

  27. Slide 27: Investments growth strategies

    21 Investments growth strategies Leveraging our investment management capabilities to drive strong performance and new products Demonstrated capabilities Growth opportunities APPF series • Outperforming industry benchmarks • High quality portfolios and clear fund strategies for growth Australia • Se

  28. Slide 28: Development growth strategies

    22 Development growth strategies Growing our Australian Development pipeline to support future earnings Well placed to secure $10b+ of pipeline opportunities in the next 12 months In-portfolio opportunities of ~$11b Our focus remains • Athletes Village, RNA Showgrounds, Brisbane; under negotiation w

  29. Slide 29: Construction growth strategies

    23 Construction growth strategies Scaling our market leading Australian platform Bidding on ~$6b of new external projects to add to ~$15b of secured and preferred work New Work Secured (NWS) exceptionally strong; large pipeline of high-quality projects to support up to $5b+ of annual external revenu

  30. Slide 30: Outlook for medium term growth and earnings

    24 Outlook for medium term growth and earnings Generating double digit equity returns from IDC operations in the medium term FY27 FY28 FY29 FY30 Grow FUM at an 8-10% average annual FUM growth rate, while actively creating and realising value from existing funds and mandates Improve from >40% EBITDA

  31. Slide 31: Analyst Q&A

    a Analyst Q&A @®

  32. Slide 32: Appendix

    a Appendix @®

  33. Slide 33: Lendlease operating segments

    27 Lendlease Click to edit Master text styles operating segments Click to edit Master text styles Second level Third level • Fourth level – Fifth level We leverage our Investments Development Construction Capital Release Unit investment management The segment comprises fund and The segment is predom

  34. Slide 34: Health and Safety

    28 Health and Safety FY25 summary Key performance indicators at record rates • No corporate reportable fatalities across the Group in FY25 Critical Incident Frequency Rate1 Lost Time Injury Frequency Rate1 FY24 0.57 FY24 1.57 • Achieved a record low frequency rate for Critical Incidents following th

  35. Slide 35: Environmental, Social and Governance

    29 Environmental, Social and Governance FY25 key achievements 2025 is a milestone year and marks the achievement of two sustainability targets – Net Zero for Scope 1&2 emissions and the creation of ~$280 million of social value, exceeding the $250 million target1 Achieved our first Mission Achieved

  36. Slide 36: Lendlease capability – select case studies

    30 Lendlease capability – select case studies

  37. Slide 37: Data Centre development and construction

    31 Data Centre development and construction Current projects and pipeline Development of Japanese Data Centres Construction of Australian Data Centres About the Data Centre Projects Australian Data Centre Construction • Developed under the Lendlease Data Centre Partners (LLDCP) mandate, the first •

  38. Slide 38: Value add repositioning

    32 Value add repositioning Enhancing value for our partners through active asset repositioning About the Project Achieving Value Enhancements • Leaf Minatomirai, a 24,000 sqm asset acquired by the Lendlease Innovation Limited • With the intention to attract the best innovators and thinkers in a loca

  39. Slide 39: Value add redevelopment

    33 Value add redevelopment Leveraging deep end-to-end capabilities to redevelop assets About the Project Financial Results • Paya Lebar Green (PLG) is a joint venture redevelopment project between Certis and • The property reached practical completion in FY25 and is 100% leased, inclusive of Lendlea

  40. Slide 40: Vita Partners – an Asia Pacific growth platform

    34 Vita Partners – an Asia Pacific growth platform Targeting the high growth sector of Life Sciences across Asian and Australian markets About the Platform • The Vita Partners platform was established in August 2024 (50:50 JV between Warburg Pincus and Lendlease) and has grown to become the largest

  41. Slide 41: Proforma and historical financials

    35 Proforma and historical financials

  42. Slide 42: Group financial and operating metrics

    36 Group financial and operating metrics1 FY19 FY20 FY21 FY22 FY23 FY24 FY25 FY19 FY20 FY21 FY22 FY23 FY24 FY25 Earnings Ratios and other data Statutory profit/(loss) after tax ($m) 467 (310) 222 (99) (232) (1,502) 225 Operating EBITDA mix by Segment (excludes the Capital Release Unit) EPS on Statut

  43. Slide 43: Financial performance – IDC and CRU

    37 Financial performance – IDC and CRU 1 FY242 FY25 Allocation methodologies $m IDC CRU Group IDC CRU Group Segment EBITDA 443 (771) (328) 662 379 1,041 Proforma information presented on this and the following two pages, for FY25 and earlier periods, are Corporate and treasury costs (105) (284) (389

  44. Slide 44: Historical financials (pro-forma and reported) – Segments

    38 Historical financials (pro-forma and reported) – Segments1 $m FY19 FY20 FY21 FY22 FY23 FY24 FY25 $m FY19 FY20 FY21 FY22 FY23 FY24 FY25 Investments (incl. international) 2 Development (Australia only) 9 FUM ($b) 3 35.2 36.0 39.6 44.4 48.3 47.3 48.9 EBITDA 512 157 354 (24) 134 198 316 FUM growth 16

  45. Slide 45: Historical financials (pro-forma and reported) – Group

    39 Historical financials (pro-forma and reported) – Group1 $m FY19 FY20 FY21 FY22 FY23 FY24 FY25 $m FY19 FY20 FY21 FY22 FY23 FY24 FY25 Segment EBITDA Operating Earnings per security (cents) 6 I / D / C (ex-CRU) 832 499 610 343 444 443 662 I / D / C (ex-CRU) 85.2 40.1 48.0 2.3 32.9 19.6 50.1 Capital

  46. Slide 46: Investments

    40 Investments

  47. Slide 47: Investments

    41 Investments1 International investment management capability; strong foundations in Australia and Asia Global network of long-standing client relationships Historical performance (incl. international) EBITDA margin Average -------------- Real estate skills to add value at the asset level 45.9% 42.

  48. Slide 48: Funds Under Management by Product

    42 Funds Under Management1 by Product FUM growth supported by $2.8b of asset creation FUM ($b) By product ($b) 2.8 (1.6) FY24 Additions Divestments Revals FX & Other3 FY25 1.0 48.9 (0.6) Workplace 25.1 1.7 (0.4) (0.6) (0.1) 25.7 47.3 Residential2 2.8 0.8 - - 0.3 3.9 Retail 12.9 0.1 (0.6) - 0.6 13.0

  49. Slide 49: Investment platforms by Region

    43 Investment platforms by Region Margins across Asia Pacific driving returns; focused on improving profitability $m FY19 FY20 FY21 FY22 FY23 FY24 FY25 Strong returns have been Australia achieved in established Australia FUM ($b) 24.8 24.7 27.6 31.1 30.8 28.0 27.7 Revenue 1 and Asia platforms 141 12

  50. Slide 50: Co-investment and Fund Summary

    44 Co-investment and Fund Summary FY25 funds management platform Weighted avg. Total assets1 Equity co-investment Country Sector No. of assets Leased WALE cap rate $b $m # % Years % Australian Prime Property Fund Commercial 5.8 296 Australia Workplace 21 92.2% 5.1 5.8% Lendlease International Towers

  51. Slide 51: APPF Series of Funds

    45 APPF Series of Funds Outperformance across a majority of benchmarks over multiple time periods • Outperformance achieved for investors FY25 FUM Lendlease • Strong alignment with investors via material Performance 1 Fund outlook co-investment and target Equity • Compelling fee structures • Funds p

  52. Slide 52: A track record of outperformance across APPF Series of Funds

    46 A track record of outperformance across Lendlease’s APPF Series of Funds1 Strong through-the-cycle returns for investors • Deep cross-sectoral knowledge and technical capabilities: the Lendlease Australian Prime Property Fund (APPF) series covers the full range of Retail, Commercial and Industria

  53. Slide 53: Development

    47 Development

  54. Slide 54: Development

    48 Development1 Leading mixed-use, urban regeneration capability Experience across a range of sectors and products Historical performance (Australia) 2 ROIC Average -------------- Strong government and capital partner relationships 29.2% 28.6% -------------- Market leader in urban regeneration & lux

  55. Slide 55: Summary of major Australian projects

    49 Development Summary of major Australian projects Presold5 Invested capital 4 End value 6 Margin 7 Delivery timeline / Pre let Target Project City Sector 2 Model 3 Ownership FY24 FY25 % $b % Start Profit realised completion Development Australia 1 Victoria Cross OSD8 Sydney Workplace Joint venture

  56. Slide 56: Construction

    50 Construction

  57. Slide 57: Construction

    51 Construction 1 Australia-only builder with deep sector expertise and client relationships Historical performance (Australia) Internal and external delivery capability EBITDA margin Average -------------- Exposure to a diverse range of sectors 3.9% 3.8% -------------- 3.1% History of operational e

  58. Slide 58: Construction Backlog, Revenue and Preferred book

    52 Construction Backlog, Revenue and Preferred book Backlog1 ($b) Historical Revenue and Backlog1 ($b) 7.0 Revenue Backlog 6.3 5.7 5.7 5.9 3.7 3.9 5.0 (3.0) 3.2 3.2 3.4 2.9 3.0 FY20 FY21 FY22 FY23 FY24 FY25 5.9 FY25 preferred3 book by client type 3.9 2% 24% 28% 39% Book to bill2: 1.7 $8.8b $8.8b 72%

  59. Slide 59: Capital Release Unit

    53 Capital Release Unit

  60. Slide 60: Capital Release Unit

    54 Capital Release Unit Maximising value capture from our international development projects Orderly capital release Land and inventory currently Joint ventures to be Land management from overseas available for sale completed agreements to be revised development projects while maximising value Effic

  61. Slide 61: Capital Release Unit – gross invested capital

    55 Capital Release Unit – gross invested capital Region or City Project Sector Capital model Ownership FY24 Inv. Capital ($m) FY25 Inv. capital ($m) Completed sales 1,515 0 United States US Military Housing Residential n/a 0% 279 0 Australia Australian Communities (12 projects) Residential land n/a

  62. Slide 62: Other financial information

    56 Other financial information

  63. Slide 63: Capital Allocation Framework

    57 Capital Allocation Framework Released capital will be Operating Capital Maximise cash flow through productivity productivity reallocated based on our lower costs, productivity, technology and culture transparent hierarchy for Net operating cash flow capital deployment: Strong balance sheet Distri

  64. Slide 64: Illustrative Capital Summary

    58 Illustrative Capital Summary 1 Targeting double-digit returns on equity Group Invested Capital ($b) Commentary CRU capital available for reinvestment into IDC operations • ~$2.5b of capital anticipated to be released from CRU, net of further debt $8.6b Targeted repayment and securities buyback, t

  65. Slide 65: Capital management and target EBITDA mix

    59 Capital management and target EBITDA mix Group EBITDA target 1 Capital structure 1 Invested capital 1 (post-simplification) Australia International Investments Development Investments Development Consolidated gearing 2 5-15% 3 Construction >75% >60% 50% Investment Credit rating grade EBITDA 5 15%

  66. Slide 66: Glossary – defined Development terms

    60 Glossary – defined Development terms Completion Based on expected completion date of underlying buildings, subject to change in delivery program. Not indicative of cash or profit recognition Funding model structured through a forward sale to a capital partner resulting in majority of profit recog

  67. Slide 67: Important notice

    61 Important notice This document (including the Appendix) has been prepared and is issued by Lendlease Corporation Limited (ACN 000 226 228) (Lendlease) in good faith. Neither Lendlease, nor Lendlease Trust (including any of their controlled entities) (collectively referred to as the Lendlease Grou

  68. Slide 68: Slide 68

Lendlease Group — FY2025 Earnings Presentation on 6ix