Lendlease Annual Report 2022

116 Lendlease Annual Report 2022 Notes to Consolidated Financial Statements continued 1.a. Business Segment Information Financial information regarding the performance of each reportable segment and a reconciliation of these reportable segments to the financial statements are included below: Section A. Performance continued 1. Segment Reporting continued The Non core segment operating profit after tax includes overhead costs associated with managing the completion of the remaining retained projects from the sale of the Engineering and Services businesses and other residual exit related matters. Corporate Activity costs are not allocated to the Non core segment given these costs relate to supporting the growth and operations of the Core segments. TOTAL SEGMENT RESULTS Investments Development 1 Construction Total Core Segments 30 June 2022 $m $m $m $m Revenue Construction services - - 6,572 6,572 Investment services 279 - - 279 Development services - 928 - 928 Sale of development properties - 610 - 610 Total revenue from contracts with customers - continuing operations 279 1,538 6,572 8,389 Other revenue 67 35 7 109 Total revenue from external customers - continuing operations 346 1,573 6,579 8,498 Construction services – discontinued operations - - - - Total revenue from external customers 346 1,573 6,579 8,498 Cost of sales – continuing operations (46) (1,328) (6,266) (7,640) Cost of sales – discontinued operations - - - - Gross profit 300 245 313 858 Share of profit of Equity accounted investments 2 120 42 6 168 Other income 2 188 85 22 295 Other expenses 3 (111) (191) (210) (512) Operating EBITDA 497 181 131 809 Finance revenue 1 6 - 7 Finance expenses (1) (5) (4) (10) Depreciation and amortisation (9) (11) (36) (56) Operating profit before tax 4 488 171 91 750 Operating income tax expenses (127) (60) (23) (210) Operating profit after tax 361 111 68 540 Investments segment revaluations (pre-tax): Investment properties 4 - - 4 Financial assets 59 - - 59 Equity accounted investments 11 - - 11 Impairment losses relating to intangibles (pre-tax) 5 (6) - - (6) Restructuring costs (pre-tax): Development impairments - (289) - (289) Tenancy impairments - - - - Redundancy costs - - - - Other restructuring costs - - - - Total adjustments 4 68 (289) - (221) Income tax benefit/(expense) on adjustments (4) 66 - 62 Statutory profit/(loss) after tax 425 (112) 68 381 1. The Development segment includes $73 million (June 2021: $88 million) of revaluation gains from Equity accounted investments and $nil million (June 2021: $4 million) of revaluation gains from Investment properties classified as Development. 2. Excludes Investments segment revaluations. 3. Excludes depreciation and amortisation, Impairment losses relating to intangibles and Restructuring costs. 4. Operating profit before tax of $344 million (June 2021: $275 million) plus Investment segment revaluations (pre-tax) of $74 million (June 2021: $19 million), less impairment losses relating to intangibles (pre tax) of $83 million (June 2021: $nil) and restructuring costs (pre tax) of $484 million (June 2021: $nil), reconciles to Loss before tax from continuing operations of $177 million (June 2021: profit of $274 million) as disclosed in the Income Statement and Profit before tax for discontinued operations of $28 million (June 2021: $20 million) as disclosed in Note 33 ‘Discontinued Operations’. 5. Relates to Digital intangible assets deemed not recoverable.