Lendlease Annual Report 2024

104 Lendlease Annual Report 2024 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 2024 $m $m $m $m Revenue Construction services - - 5,915 5,915 Investment services 253 - - 253 Development services - 1,472 - 1,472 Sale of development properties - 1,149 - 1,149 Total revenue from contracts with customers 253 2,621 5,915 8,789 Other revenue 71 41 20 132 Total revenue from external customers 324 2,662 5,935 8,921 Cost of sales (89) (2,216) (5,690) (7,995) Gross profit/(loss) 235 446 245 926 Share of profit of equity accounted investments 2 82 208 3 293 Other income 3 17 18 38 Other expenses 2 (146) (162) (140) (448) Operating EBITDA 174 509 126 809 Reconciling Items Finance revenue - 10 1 11 Finance expense (1) (48) (3) (52) Depreciation and amortisation (14) (21) (42) (77) Operating profit/(loss) before tax 3 159 450 82 691 Operating income tax (expense)/benefit (23) (130) (18) (171) Operating profit/(loss) after tax 136 320 64 520 Investments segment revaluations (pre-tax): Investment properties (26) - - (26) Financial assets (132) - - (132) Equity accounted investments (154) - - (154) UK building remediation - (17) - (17) Costs relating to the strategy update (pre-tax): Development impairment - (547) - (547) Goodwill impairment - (34) (479) (513) Redundancy, tenancy and other break costs - - - - Other strategy update costs - - (50) (50) Other restructuring costs (pre-tax) - - - - Total adjustments 3 (312) (598) (529) (1,439) Income tax benefit/(expense) on adjustments 52 41 8 101 Statutory (loss)/profit after tax (124) (237) (457) (818) 1. The Development segment includes $4 million of revaluation losses from Equity accounted investments. 2. Excludes Investments segment revaluations, depreciation, amortisation, restructuring costs, costs relating to the strategy update announced in May 2024 and UK building remediation. 3. Operating profit before tax of $299 million plus Investment segment revaluations (pre-tax) of $(312) million, UK building remediation of $(17) million, Costs relating to the strategy update (pre-tax) of $(1,242) million and Other restructuring costs (pre-tax) of $(117) million reconciles to Loss before tax as disclosed in the Income Statement.