Lendlease Annual Report 2021

More than 160 million residents and visitors interact with Lendlease every year. We conduct regular research to understand what is important to them to both improve their experience with us and help shape our communities and precincts. Overall, our loyalty measure, Net Promoter Score (NPS), increased slightly and customer satisfaction, CSAT, was steady this year. EODB (Ease of Doing Business), a new measure introduced, achieved a strong result. We interpret these as positive outcomes given the challenging global environment, including COVID and political uncertainty in some regions. Common themes around people, project/ asset quality, the delivery process, safety and sustainability dominated feedback. We value the impact of our actions at every customer touchpoint. Regardless of the project, region or stage of customer engagement, we aim to provide best practice solutions, in demand amenities and a consistent, positive experience. With a pipeline of more than 59,000 apartments in our global residential portfolio 1 , repeat purchasers are an indication of success. We recently launched our second residential tower at One Sydney Harbour with 23 per cent of sales to date from existing Lendlease customers. As part of this sales process, we piloted an online reservations' platform for customers to directly reserve a selection of apartments. In response to changing customer expectations, we also extended our digital solutions this year to execute a unique interactive launch for TRX Residences at The Exchange TRX in Kuala Lumpur, offering virtual encounters and viewings. Our B2B relationships span partnerships with organisations, not for profits, c.16,000 suppliers and a range of institutional investors across funds, mandates and managed assets. We work with and for businesses across all our operating segments. Within our Investments platform our top 10 investors account for two thirds of third party capital. They consist of some of the world's largest pension and sovereign wealth funds such as Canada Pension Plan (CPP Investments), Mitsubishi Estate, GIC, APG, NPS, Aware Super and HostPlus . In FY21, we introduced Ivanhoé Cambridge to the platform by partnering on a life sciences project in Boston. Additional investments were also secured with Aware Super, CPP Investments, NPS and Mitsubishi Estate. Expanding existing relationships with established, large partners remains a priority. Having already founded a residential partnership with Aware Super in the Americas, they recently became our joint venture partner on an additional two development projects in New York and Los Angeles. They also acquired a 25 per cent stake in our Australian Retirement Living business. Aware Super and Lendlease share a philosophy that those entrusted with creating and managing the built environment have immense capacity, and an obligation, for doing good. Leadership in responsible property investment and creating value for residents and investors was a founding principle on inception of the partnership in 2018. This year, the US residential portfolio in Chicago and Boston was verified net zero carbon and the Retirement Living business ranked first in the Global Real Estate Sustainability Benchmark (GRESB). B2G customer relationships connect with all tiers of government to collectively shape cities and places and support economic growth. Our diverse capabilities cover numerous project types across a diverse range of sectors including education, residential, civil infrastructure and healthcare. During COVID, we have been applying our award winning expertise in the health sector to help manage health and economic impacts. Working both directly and indirectly with governments, we are constructing or upgrading a mix of hospitals, pharmaceutical labs, vaccination hubs and life sciences and research centres across our operating regions. In Asia, we are currently engaged in conversations with Singapore authorities to attract new investments into the country’s life sciences sector given our expertise in delivering major pharmaceutical manufacturing facilities to the region. In New York, we worked closely with the local government to complete the Javits Center expansion that operated as a COVID field hospital and the largest vaccination centre in the United States. In Australia, we have been entrusted to deliver crucial health infrastructure, with state government healthcare projects currently under construction or in planning. Construction milestones were achieved at the health, research and education precinct at Randwick Campus that has employed a workforce of more than 1,300. The business was awarded the main works contract for Tweed Valley Hospital and the second stage of work for the Caboolture Hospital Redevelopment Project in Queensland. In addition, we are the preferred builder for 120 new mental health beds across four acute mental health facilities in Victoria. To meet the government’s aspirations to deliver these much needed facilities, an expedited modular construction delivery model was developed. "High-quality assets that contain strong sustainability aspects is what attracts us to companies such as Lendlease as we seek to diversify our property portfolio globally." Alek Misev, Portfolio Manager, Aware Super Our customers range from individuals to the largest government, investment and corporate organisations. 1. Backlog of residential units across our urbanisation projects. Our Customers B2C: Business to Consumer B2G: Business to Government B2B: Business to Business 23% of purchasers to date in Residences Two of One Sydney Harbour are repeat Lendlease customers Increase in customer loyalty 45% major construction backlog, representing $5.7 billion with government Sydney: Randwick campus on Gadigal Country and Bidjigal Country 2/3 of third party capital is held by our top 10 investors across the funds' platform $3.1 billion committed in third party capital We have the depth of expertise, opportunity and understanding of our customers to attract new partners and customers and retain those who invest in or visit our places again and again. A sense of place – where customer experiences and relationships matter 39 A sense of place 38 Lendlease Annual Report 2021 Managing and Measuring Value