Lendlease Annual Report 2022

14 Lendlease Annual Report 2022 Vision, purpose and strategy We create places where communities thrive. Our vision for the future of the urban landscape is tied to our purpose as an organisation. This purpose centres on forming vibrant and enduring communities that contribute to a more liveable and sustainable future. We are committed to creating value for all those who interact with us and to making a positive contribution, beyond just the places we create. The actions we take are driven by an understanding that every decision we make has an impact and must be made in collaboration. Working in partnership with a myriad of stakeholders, we are helping to solve some of the biggest challenges confronting people, cities and the planet. Strategy The cornerstone of our strategy is to create the best urban precincts in targeted global gateway cities. Our point of difference is our proven expertise in placemaking and delivering major urban projects through our integrated business model, backed by our financial strength. Our strategy is underpinned by an ethos that long term value creation is maximised by achieving social, environmental and economic outcomes. This involves collaborating with customers, investment partners, governments and the communities within which we operate. A key differentiator from other industry players is our end-to-end capability across all aspects of real estate: from concept and planning to design and delivery, through to funding and investment management. This is the essence of our integrated model. A proven track record of creating large scale mixed use urban precincts has enabled the Group to deepen its expertise and sophistication to become, in our view, the partner of choice for urban regeneration. ‘Place’ is about peoples’ connection to a physical environment and the experiences that trigger both an emotional attachment and a sense of belonging. The unique places we create are carefully designed and curated to meet the needs and aspirations of the people who live, learn, work and play there. Roadmap to success This year we announced a five year roadmap: Reset; Create; Thrive, designed to extract the most from our strategy. The past year has seen a significant resetting of the organisation as our people and our financial capital has been directed towards leveraging the Group’s core capabilities, particularly across urban projects and our investments platform. We have also simplified our structure, exited non-core businesses and reduced our capital in Retirement Living. Our partnership approach has driven significant growth in our investments platform. Future growth will be underpinned by the investment grade product we expect to create from the development pipeline. In addition, we have the appetite and global capability to launch new products alongside our investment partners. We are targeting invested capital to increase to $6b in each of the Investments and Development segments by FY26. We enter the Create phase of our roadmap with confidence in our strategic direction. The achievement of two key medium term operational targets; development completions of more than $8b per annum from FY24 and funds under management (FUM) of $70b by FY26, remain on track. The size of our development pipeline, investment in capability to execute at scale and the resilience of the global cities in which we have a presence, provides us with confidence in achieving our development target. Investor appetite for the geographically diverse and sustainable product in our development pipeline, as well as deep relationships with global investment partners, underpin our conviction in reaching our FUM target. Our global operating model provides a framework for implementing best practice consistently, while empowering our teams to lead and innovate. To support our strategic objectives, we are investing in key capabilities with the longer term in mind. Resilience We understand cities will need to become more affordable, inclusive and sustainable with a greater focus on transport links, security and workplace flexibility. Our placemaking skills are already adapting to these challenges and the associated changes in consumer, corporate and government behaviour. Our strategy has been designed to be resilient. The business model, supported by land management structures across most projects, has the agility to ride out market cycles. Strategic priorities • Scale investments • Accelerate development • Best practice construction delivery • Leverage competitive edge • Leadership in sustainability