• $2.5b of announced or completed capital recycling initiatives, with a further $2.0b targeted for FY26
• Exit of international construction operations complete, improving Group risk/return profile
• $141m of pre-tax annualised run-rate overhead cost savings, targeting an additional $50m in FY26

Lendlease has achieved significant progress since its May 2024 strategy update, simplifying the Group and positioning the business for sustainable growth and returns above the Group's cost of equity. FY25 marked a return to profitability on both a statutory and an operating basis, while advancing capital recycling to support future growth. Lendlease's distribution is up 44% and the dividend component has been fully franked. The Group has announced or completed $2.5b of capital recycling initiatives, with a further $2.0b targeted for FY26, of which $1.0b is at an advanced stage. The exit of international construction operations is complete, improving the Group's risk/return profile. Lendlease has achieved $141m of pre-tax annualised run-rate overhead cost savings, exceeding its $125m target, and is targeting an additional $50m of run-rate savings in FY26. The Investments, Development and Construction (IDC) segments delivered Operating EBITDA of $662m, up 49%, contributing 50.1cps to Group EPS. Net debt is $3.4b, down $0.4b on 1H FY25, with gearing of 26.6% and available liquidity of $3.0b. Lendlease is positioned for growth, with $1.5b of new investment mandates across Australia and Asia, $3.0b of new development pipeline secured in Australia, $1.3b of Australian development production spend, and $5.0b of new construction work secured in Australia.

FY26 IDC EPS is anticipated to be 28-34 cents, with fewer scheduled development completions. FY25 IDC EPS was 50.1 cents. Lendlease is targeting ~$2.0b of CRU capital recycling in FY26 to support debt reduction and future growth. Gearing is anticipated to be at or below 15% by the end of FY26.

FY26 will mark a planned transition year for Lendlease. A strong visibility to earnings from project completions is anticipated to drive a sustained earnings rebound from FY27, anchored by One Circular Quay and Victoria Harbour completions. FY28 will be supported by One Darling Point and Comcentre completions, and anticipated earnings from The Crown Estate JV. This is also supported by a strong Construction pipeline, and growth initiatives within the Investments platform.