Brad SollerGroup Chief Financial Officer

Financial Overview

Agenda

1. Capital allocation2. Future capital allocation3. Sources of capital4. Key debt metrics5. Debt maturity profile6. Pipeline7. Key financial targets

Capital allocation

Segm

ent

3

Reg

ion Australia

>~60%

All other regionsNo more than ~20% each

Development~35 – 45%

Construction~30 – 40%

Investment Management~5 – 15%

Services~<5%

Ownership~10 – 20%

TARGET Risk Adjusted Capital 1

1.Risk adjusted capital is an internal calculation used as a proxy for Lend Lease equity. The risk adjusted capital is based on a December 2010 pro forma balance sheet which includes the Lend Lease infrastructure business.

Australia62%

Asia5%

Amercias14%

Europe19%

Devel-opment

38%

Project Manage-ment & Construc-

tion33%

Investment Manage-

ment1%

Ownership23%

Services5%

Future capital allocation

Investment pipeline of between A$1-1.5b over next 3 years1

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Region SectorAustralia Major development projects

Lend Lease communities Co-investment in funds PPP equity positions

Americas Lend Lease DASCO healthcare pipeline

Asia Retail development Co-investment in funds

Europe Major projects such as Stratford International Quarter and Elephant & Castle

1. Net cash outflows

Sources of capital

Source of Capital Expected position

Retained earnings Current dividend payout ratio of between 40% to 60% of net operating profit after tax

DRP to remain active

Portfolio Management Have sold circa A$2.3b of assets since 2006 Number of mature assets to be sold down over next three years

Debt Capacity from increasing Group gearing Off balance sheet funding of major projects

Third party equity Significant access to third party capital through Lend Lease managed funds

Lend Lease to sell down equity in major projects pre commencement

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Key debt metrics

1. Net (cash) / debt is borrowings including certain other financial liabilities, less cash2 .Gearing is calculated as Gearing is calculated as net debt, divided by total tangible assets, less cash 3 .Weighted average maturity relates to drawn debt 4 .Calculated as operating EBITDA plus interest income divided by interest finance costs, including capitalised finance costs

Dec 2010 June 2010Credit Rating - S&P/Moody’s BBB- / Baa3

(Stable)BBB- / Baa3

(Stable)

Net (cash) / debt1 (A$m) 29.5 (19.7)

Gearing excluding Valemus 2 0.4% Net cash position

Pro forma gearing including Valemus 6.7%

Undrawn facilities (A$m) 571.5 688.6

Weighted average debt maturity 3 4.8 years 5.5 years

Weighted average cost of debt 6.4% 6.3%

Fixed / floating debt 63% / 37% 65% / 35%

Interest coverage 4 6.5x 6.7x

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Debt maturity profile

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FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY220

100

200

300

400

500

600

700

800

A$ Club

USPP

USPP

USPP

UK RCF

Bluewater

New A$

New A$A$ Term

UK Bond

Debt Facilities Maturity Profile- Post Proposed A$ Club RefinanceA$m

Pipeline delivers certainty of future earnings

FY2011 FY2012 FY2013 FY2014 FY2015 FY2016

Barangaroo South

RNA

Elephant & Castle

Stratford International Quarter

Australian residential

Lend Lease DASCO

Jurong

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Key financial targets – tracking well

Metric Target 31 Dec 2010

Return on Equity Greater than 15% per annum 13.4%1

Credit Rating Committed to investment grade credit rating

BBB- / Baa3(Stable)

Gearing2 <20% 6.7%3

Interest Coverage Ratio >5x 6.5x

Annuity Income 20% of EBITDA 23%

Dividend Payout Ratio 40% to 60% of Operating Profit after Tax 51%

1. Return on equity is calculated as the half year statutory profit after tax divided by the weighted average equity for period multiplied by two. This was done to approximate an annual return on equity

2. Gearing is calculated as net debt, divided by total tangible assets, less cash

3. Gearing including the proforma impact of the Valemus acquisition

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