Lendlease Annual Report 2022

Financial Statements 157 During the current and prior year, the following disposals of material consolidated entities occurred. Ownership Interest Disposed % Date Disposed Consideration Received/Receivable $m June 2022 Lendlease (US) Asset Management LLC 100.0 20 April 2022 173 Lendlease Services Pty Limited 100.0 1 November 2021 331 June 2021 One Sydney Harbour R1 Trust 25.0 1 July 2020 43 Lendlease Construction Australia Holdings Pty Limited 1 100.0 9 September 2020 197 Lendlease (US) Telecom Holdings LLC 100.0 15 October 2020 390 Lendlease Renaissance I 50.0 29 June 2021 27 One Sydney Harbour R2 Trust 25.0 29 June 2021 50 1. Includes the sale of Lendlease Engineering Pty Limited. 29. Employee Benefit Vehicles The Company sponsors a number of employee benefit vehicles, including employee security plans and employee security ownership vehicles. These vehicles, while not legally controlled, are currently required to be consolidated for accounting purposes. 29.a. Employee Security Plans As at 30 June 2022, employees own approximately 0.9 per cent (June 2021: 0.9 per cent) of the issued capital of the Group through various active Lendlease employee security plans and ownership vehicles, details of which are outlined below: • Australia: Employee Share Acquisition Plan (ESAP): ESAP was established in December 1988 for the purpose of employees acquiring securities in the Group and is funded by Lendlease subscriptions, and employee salary sacrifice contributions • Americas: US Rabbi Trust (Rabbi Trust) was established in 2004 and updated in 2005 for the acceptance of employee profit share contributions used to acquire Group securities for US based employees. This part of the plan is not currently accepting new contributions • Employee Share Acquisition Plan (STI) (ESAP STI): ESAP STI was established in July 2014 for the purpose of acquiring and allocating securities granted as the deferred component of Short Term Incentive (STI) awards, which are funded by Lendlease subscriptions. Securities are currently allocated to employees across Australia, Singapore, Malaysia, the United Kingdom and the United States. Eligibility The eligibility rules for each plan are determined by reference to the regulatory, legal and tax rules of each country in which the Group operates. Distributions and/or Voting Rights Generally, employees in the various operating security plans are entitled to distributions and voting rights for allocated securities. The plans reflect this intention subject to regulatory, legal and tax constraints. The trustee may exercise these rights in accordance with any fiduciary or governance rules pertaining to the deed or trust laws in the legal and tax jurisdiction within which the trust operates. 29.b. Employee Security Ownership Vehicles In addition to the plans discussed above, Lendlease has an employee security ownership vehicle, Lendlease Retirement Benefit Fund (RBF): • RBF was established in 1984 with shareholder approval for the benefit of employees. RBF holds Lendlease securities. The Lendlease securities in RBF are not available for allocation to employees other than in the event of a change of control of the Group and, in accordance with RBF’s trust deed, the capital of the trust is not available to the Group. The RBF trustee has discretion as to the distribution of the RBF funds. In 1992, a deed poll was executed which allows for the distribution of the income of RBF to the Company to fund employee benefit activities through the Lendlease Foundation. As a result of changes to the constitution and governance structure of the RBF trustee on 22 June 2017, Lendlease currently does not have control of RBF and therefore RBF is currently not required to be consolidated for accounting purposes • The RBF arrangement is subject to periodic review to assess its ongoing role and operation.