Lendlease Annual Report 2024

Year in Review 7 Remuneration outcomes In response to the ‘first strike’ received on the 2023 Remuneration Report, I, along with our People and Culture Committee Chair, Elizabeth Proust, met with many of Lendlease’s key stakeholders to listen to and understand the reasons for the strike. This reinforced our view of the need to demonstrate strong alignment between remuneration outcomes for executive management and the experience of our securityholders. Accordingly, given the poor financial outcomes for securityholders, the CEO and his leadership team will not receive a Short Term Award for FY24. Further information on our approach is detailed in the Remuneration Report on page 68. Reflection on the past, looking to the future This is my final year as your Chair and, as I reflect on my six years in the role, it has been characterised by significant challenge for Lendlease, both strategically and in the operating environment we have faced. My first term as Chair commenced shortly after the announcement of the problems in our Engineering business, which led to a strategic review and decision to exit the business – a significant undertaking given the scale and complexity of the operations. This was followed by the onset of the global pandemic and leading the Board’s support of management as we dealt with the incredibly challenging task of maintaining our global construction and development activities in the face of an unprecedented operating environment. I am immensely proud of how our teams around the world responded. My second term has been characterised by the strategic challenges posed by significant structural changes and a prolonged cyclical downturn post pandemic. During this period, I led the appointment of a new CEO, and am delighted at how Tony has transitioned into the role. Through this period there has been a substantial refinement of our strategic focus, extensive restructuring of our operations, and the delivery of significant operating efficiencies. The culture of Lendlease is a special and resilient one. The diligence and commitment of our people across the business has been truly remarkable, and the achievements and outcomes for our clients around the world during this time deserve to be recognised and commended. There has been constant Board renewal throughout my Chairmanship which has focussed on increasing the depth of real estate and investment experience around the Board table. During my time on the Board I have been immensely proud of the continual improvement in the health and safety outcomes for our people through a relentless focus by management on this critical area. I am also proud of our industry leadership in all aspects of sustainability – with bold actions to respond to climate change, and continuing our founder’s commitment to maintaining a social licence to operate. Lendlease is at a critical juncture in its history. The Board and management have thought very carefully about the necessary strategic actions and taken some tough decisions. I am confident we have the right team and commitment to realise the value inherent in our business on behalf of securityholders. And I am determined to dedicate my final months with this great company to achieving a smooth transition to the Board's new leadership. I thank my fellow Directors and the entire Lendlease team for their ongoing dedication to repositioning the organisation for sustainable future growth. M J Ullmer, AO Chairman I am confident we have the right strategy, team and commitment to realise the inherent value in our business on behalf of securityholders.