Lendlease Annual Report 2022

90 Lendlease Annual Report 2022 Global CEO STA Scorecard The following changes were made to the Global STA scorecard for FY22: • the introduction of metricated KPIs with threshold and maximum performance set in addition to target • simplification of KPIs and reduction in the number of KPIs • shifting the KPI weightings to 65% financial KPIs / 35% non financial KPIs (previously 50% / 50%) • 50% paid as cash and 50% deferred as Rights to receive Lendlease securities released in two equal tranches after one and two years In FY22 the CEO and the executive team were able to establish an optimised structure and businesses, recalibrate the cost base, complete a portfolio review and implement a focused business model. This has set the business up in a better position than anticipated for the end of this financial year. The Board in assessing STA outcomes for the CEO and the executive team have given consideration to both financial outcomes and strategic progress. Actual performance of the business has either achieved or exceeded the earnings guidance provided for FY22. KPI Weighting FY22 Result Financials 65% Operating Profit After Tax ($m) 35% THRESHOLD MAXIMUM OPAT of $276m reflects on-plan performance and is ahead of market consensus. Development – Completions ($b) 10% THRESHOLD MAXIMUM $2.5b result slightly below plan due to considerable impact of extreme unexpected weather events in Australia. Construction – EBITDA margin (%) 10% THRESHOLD MAXIMUM 2.0% result is within range but at the lower end. Impacted by material revenue reduction across most regions, supply chain / inflation pressures, and provisions for legacy claims. Investments – Management EBITDA margin (%) 10% THRESHOLD MAXIMUM Ahead of plan and consensus performance. Non Financials 35% Safety – Critical Incident Frequency Rate (CIFR) 10% THRESHOLD MAXIMUM FY22 CIFR result is the lowest recorded level to date. Sustainability - carbon emission (000's tonnes) 5% THRESHOLD MAXIMUM Strong progress made on delivering long term goals, achieving carbon emissions of 98k tonnes well below the target of <210k tonnes. Sustainability - social value ($m created) 5% THRESHOLD MAXIMUM $60m of social value created was a strong result against target range of >$50m. Customer Satisfaction (CSAT score) 5% THRESHOLD MAXIMUM Customer satisfaction of 7.9 improved 0.3 points from FY21 and is above target levels following improved focus on the customer. People - Executive Engagement (%) 10% THRESHOLD MAXIMUM Executive engagement of 78% exceeds target, representing a significant 10 point increase from May 2021.