Lendlease Annual Report 2024

78 Lendlease Annual Report 2024 FY24 Group CEO STA Scorecard The Board in assessing STA outcomes for the CEO and the executive team have given consideration to both financial outcomes and strategic progress. KPI Weighting FY24 Result Financials 70% Operating Profit After Tax ($m) 35% OPAT of $263m was achieved, marking a slight increase from FY23 but falling below the threshold for the period. This result reflects delays in transaction timing for key divestitures and impacted Development transactions, which were not completed as anticipated. Additionally, the timing of deferred transactions contributed to a reduction in OPAT due to higher borrowing costs. Group Gearing Cash Flow Target (%) 5% Group gearing was below threshold for the period at 21% as a result of delayed Communities transaction impacting the timing of expected cash inflows. Investments – Funds Management EBITDA margin (%) 10% The Funds Management EBITDA margin of 41.5% is above target and has been driven by improved performance from Australia and Asia regions. Development – Completions ($b) 10% $8.2b of Development completions delivered were above target in FY24, highlighted by key projects such as One Sydney Harbour and TRX Retail. Construction – EBITDA margin (%) 10% An above target Construction EBITDA margin of 2.1% reflects improved contribution from Asia, which was partially offset by a lower contribution from Australia. Non Financials 30% Safety – Critical Incident Frequency Rate (CIFR) (%) 7.5% The FY24 CIFR result achieved was slightly above target. The target was set to achieve <0.570, the Group’s result was 0.569. There were no fatalities in the reporting period. Sustainability - carbon emission (000's tonnes) 7.5% The Group has continued to make progress on our carbon emissions targets, recording 99k tonnes and beating the target maximum of <100k tonnes. Customer Satisfaction (CSAT score) 7.5% Customer Satisfaction of 7.9 out of 10 is in line with FY23 result and has achieved target outcome. People - Employee Engagement (%) 7.5% Employee engagement for the period was 60%, representing a year-on-year decrease of 1% from FY23, falling below threshold for the target. Downward Discrection on Group CEO STA outcome to zero Based on the above STA Scorecard outcomes, the Group CEO's STA for FY24 resulted in an achievement of 58% of target ( 42% of maximum), which would normally deliver a STA outcome of $1,045,800. However, in light of the continued decline in securityholder experience, the Board exercised downward discretion to reduce FY24 STA payments for the Group CEO and the Corporate Leadership Team (CLT) to zero.