Table of Contents 1 192

Lendlease Annual Report 2022

Contents 3
About this Report 4
About this report 4
Year in review 6
Chairman’s Report 8
Global Chief Executive Officer’s Report 10
FY22 snapshot 12
Our business 14
Vision, purpose and strategy 16
Operating segments 18
FY22 segment highlights 19
Renewal 20
The power of the city 22
Growing our investments platform 24
Development, at scale 26
Execution excellence 28
1 Java Street, New York 30
Our focus areas 32
Managing and measuring value 34
Health and Safety 36
Financial 38
Our Customers 40
Our People 42
Sustainability 44
Performance 44
1.5 degree aligned 44
Environmental performance 47
Creating social value 48
Elevate Reconciliation Action Plan (RAP) 49
Risk & climate-related resilience 50
Risk governance and management 52
Climate-related strategic resilience 54
Performance and Outlook 58
Group performance 60
Group performance continued 61
Investments segment 62
Development segment 63
Construction segment 64
Financial position and cash flow movements 65
Governance 66
Board of Directors’ information and profiles 68
Board skills and experience 73
Engagement 74
Board Project Assessments 75
Supporting value creation 76
Board of Directors’ information 78
Directors’ Meetings 78
Attendance at Meetings of Directors 1 July 2021 to 30 June 2022 79
Remuneration Report 80
Remuneration Report 80
FY22 Remuneration Snapshot 81
Contents 82
KMPs covered by this report 83
Executive Reward Strategy 84
Non Executive Director Fee Policy 97
Remuneration Governance and Risk Management 98
Other Statutory Disclosures 101
Directors’ Report 106
Lead Auditor’s Independence Declaration 108
Financial Statements 109
Table of Contents 110
Consolidated Financial Statements 111
Income Statement 111
Statement of Comprehensive Income 112
Statement of Financial Position 113
Statement of Changes in Equity 114
Statement of Cash Flows 115
Notes to Consolidated Financial Statements 116
Basis of Preparation 116
Section A. Performance 117
1. Segment Reporting 117
1.a. Business Segment Information 118
1.b. Geography Segment Information 123
2. Dividends/Distributions 124
3. Earnings Per Share/Stapled Security (EPS/EPSS) 125
4. Revenue from Contracts with Customers 126
5. Share of Profit of Equity Accounted Investments 128
6. Other Income 128
7. Other Expenses 129
8. Finance Revenue and Finance Costs 131
9. Taxation 132
9.a. Income Tax Expense 132
9.b. Tax Effect Relating to Other Comprehensive Income 133
9.c. Deferred Tax Assets and Liabilities 133
10. Events Subsequent to Balance Date 135
Section B. Investment 136
11. Inventories 136
12. Equity Accounted Investments 137
12.a. Associates 138
12.b. Joint Ventures 138
12.c. Material Associates and Joint Ventures Summarised Financial Information 140
13. Other Financial Assets 142
13.a. Fair Value Reconciliation 142
Section C. Liquidity and Working Capital 143
14. Cash and Cash Equivalents 143
15. Notes to Statement of Cash Flows 144
16. Borrowings and Financing Arrangements 144
16.a. Borrowings – Measured at Amortised Cost 145
16.b. Finance Facilities 145
16.c. Movement in Borrowings and Financing Arrangements 146
17. Issued Capital 146
17.a. Issuance of Securities 146
17.b. Security Accumulation Plans 147
17.c. Terms and Conditions 147
18. Capital Management 147
19. Liquidity Risk Exposure 147
20. Commitments 148
20.a. Capital Expenditure 148
20.b. Investments 148
20.c. Investment Properties 148
21. Loans and Receivables 149
21.a. Contract Assets 150
22. Trade and Other Payables 150
22.a. Contract Liabilities 151
23. Provisions 152
Section D. Risk Management 153
24. Financial Risk Management 153
24.a. Foreign Currency Risk Exposure 154
24.b. Credit Risk Exposure 155
24.c. Interest Rate Risk Exposure 155
25. Hedging 155
26. Fair Value Measurement 156
26.a. Basis of Determining Fair Value 156
26.b. Fair Value Measurements 156
27. Contingent Liabilities 157
Section E. Basis of Consolidation 158
28. Consolidated Entities 158
29. Employee Benefit Vehicles 159
29.a. Employee Security Plans 159
29.b. Employee Security Ownership Vehicles 159
30. Parent Entity Disclosures 160
31. Related Party Information 160
31.a. Consolidated Entities 160
31.b. Associates and Joint Ventures 161
31.c. Key Management Personnel 161
Section F. Other Notes 162
32. Intangible Assets 162
32.a. Goodwill 162
32.b. Goodwill Allocation 163
32.c. Impairment Tests and Key Assumptions Used – Construction 163
33. Discontinued Operations 163
34. Defined Benefit Plans 166
34.a. Lendlease UK Pension Scheme 166
35. Employee Benefits 168
35.a. Short Term Incentive (STI) 168
35.b. Short Term Award (STA) 169
35.c. Long Term Incentive (LTI) 169
35.d. Long Term Award (LTA) 170
35.e. Restricted Securities Award (RSA) 172
35.f. Executive Deferred Award (ED Award) 173
35.g. Deferred Equity Award (DEA) 173
35.h. Pro Rata CEO Grant 173
35.i. Google Development Ventures (GDV) Incentive 173
35.j. Amounts Recognised in the Financial Statements 173
36. Reserves 174
37. Impact of New and Revised Accounting Standards 174
38. Other Significant Accounting Policies 174
38.a. Foreign Currency Translation 174
38.b. Goods and Services Tax 175
Directors’ Declaration 176
Directors' Declaration 176
Independent Auditor’s Report 177
Other Information 184
Corporate directory 186
Securityholder information 187
Glossary 190

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