With me, Sutton Officer. Sitting here at Barangaroo in Sydney, we're on the land of the Gadigal people and elders past and present.

Today I'll provide an overview of our half-year 2020, talk through the financials, and I will then cover the outlook and open for questions. Starting on slide four, Lendlease.

As the strategy reset announced in May 2024 continues, there are three core components of the strategy that... The group is being repositioned to focus on operations and international investments platform.

Reported as investments, development and construction, these businesses have historically delivered double-digit cycle and continue to show strong operating momentum. The other core element of our strategy was the establishment of the CRU to facilitate the recycling of capital from underperforming or non-core parts of the group.

For strategy update, we announced that $2.8 billion of CRU assets were on the market, alongside a further of CRU assets identified as being available for sale. We've now announced or completed in dollars of CRU assets, in addition financing the remaining asset pool, with a further $1.5 billion of assets targeted for the second half.

We have announced our intent to launch a securities buyback, subject to spec. The main outstanding condition is achieving the clear contractual visibility to a sustainable underlying gearing level of 15%.

First half, we've increased that contractual visibility through the signing action and are progressing the satisfaction of conditions precedent for both the joint venture with the Crown Estate and the sale. The divestment process for Keyton Retirement, looks rent assets, and the recapitalisation of ADB, are all now in exclusivity.

Capital recycling initiatives for other assets are also underway. We are targeting the completion of $3 billion transactions in the second half of 2026, operations and CRU.

This is assessed on a forward-looking basis and requires a degree of sale proceeds translating into net debt reduction. As that certainty increases, the buyback.

The group maintains a strong financial position with 3.5 and flexibility provided by the recent hybrid issuances. This position enables us to take a measured approach to capital recycling.

Now to slide five and our half-year financial performance. Limited completions in development and lower transaction earnings in investments, the IDC segment EBITDA of $204 million was down from $341 million, with an improvement being a highlight.

Moving to CRU, as we have stated, the segment's primary... $500 million of further progress made in the period.

At the group level, the half of $318 million was recorded, including $108 million negative investment property revaluation and impairments, primarily Singapore. The group operating loss after tax included a positive $87 million contribution from IDC and $87 million from CRU.

The operating loss included a $95 million land parcels, as previously flagged last calendar year, and that is after tax, $95 million, and a further $40 million to tail risks in the exited international construction businesses. 25.8%, benefiting from the hybrid issuance.

The group gearing of 15% by the end of FY26, subject to the completion of targeted resales both CRU and IDC. Simon will talk to our balance sheet position and presentation.

Our investment segment earnings highlighted on funds under management and contributions from our directly held co-investment portfolio. Performance, liquidity and growth to drive positive outcomes.

Funds under management was stable at $48.7 billion to $5 billion of additions. The group held $2.9 billion of co-investment capital at the half.

Actively manage this position to support an appropriate balance between capital alignment and third-party capital. Portfolio movements in the period included increasing our investment in the APPF Industrial Fund and downweighting ownership in the ALREIT.

Portfolio remains well diversified with a primary weight... The co-investment yield, driven by underlying asset performance, remained 4.4%.

The platform continues to grow with more than 80 investors, $11 billion of capital available to deploy across existing mandates, and $1 billion of capital being raised for a Japan value-add mandate, a new and existing funds and developed-to-core product. We remain highlighting $4.4 billion of gross property transactions across our investment platform in the period.

To, there were $1.3 billion of development completions this half in core Sydney. Across our residential business, gross apartment pre-sales increased to $3.3 billion to FY27, expected to deliver gross cash proceeds of $1 billion.

We've made strong progress growing the Australian development pipeline, $2 billion of new projects secured in the half. We remain well positioned to achieve our targets this financial year.

Sydney Metro, high development was secured, as was the luxury residential project 175 Liverpool Street in Sydney, along with Estate Asia and Nippon Steel Kowa Real Estate. In $12 billion of future development opportunities from balance sheet holdings at the RNA and our Rozelle Bayside in Sydney.

We currently have two residential in Melbourne, representing a further $4 billion. In the half, we secured a role as master development manager for the owning of land in Victoria for industrial use, leveraging Lendlease's development plan.

Lendlease expects a new development management fee stream with FY28. Lendlease has the option to secure all or part of the...

which is expected to have an end value of around $4 billion. Our origination efforts remain focused in Australia, deploying a capital light joint venture.

With our strong liquidity position, this enables us to new development opportunities as we continue to replenish the development pipeline. Moving now to slide nine.

Revenue growth for the half was strong, up 22% project commencements such as the new Melton Hospital projects. Disciplined project execution, 17% recorded for the half.

There was $4 billion, very strong result led by the Hunter Street West overstation development contract, following $3.8 billion in the prior period. New wins contributed to a strong order book of $8 billion, up 36% on FY2026 and existing social infrastructure and defense back.

We continue to pursue and win high-quality work with an additional $9 billion of active, including major transport, social infrastructure and data center projects. With a preferred workbook of $6.9 billion, places the business in a strong position to increase its future, with circa $15 billion of secured and preferred work.

Before I make a few remarks, today's financial result will be Simon's last for Lendlease, with Simon finishing in his role as Group Chief Financial Officer at the end of February as he relocates to Asia. I'd like to take this opportunity to thank him for his contribution to the organisation and wish him every success in his future endeavours.

I would also like to welcome Andrew Neil on 1 March. I look forward to working with him in his new capacity.

I'll now hand over.

Thanks, Tony. For everyone, I'd like to acknowledge what a privilege it has been to spend the last four and a half years working at Lendlease.

The strategy that we have in place is the right strategy for the benefit of our security holders, customers and our people, in continuing to execute it. Start on slide 11.

As Tony mentioned earlier, limited completions in development and lower transaction earnings in investments, segment EBITDA of $204 million, down from $300 million, with an improved performance from construction. In investments, segment EBITDA reflected a stable underlying operating performance, with the prior period including transaction earnings associated with the joint venture of $129 million.

Segment EBITDA of $34 million reflected the timing of major completions, including $118 million from Residences Two, One Sydney Harbour. In construction, segment EBITDA of $69 million was driven by 22% higher revenues and improved project performance.

The segment reported an EBITDA loss of $208 million, down from a prior period gain of $34 million, reflecting impairments and provisions and the limited completion of capital. Group corporate costs of $130 million, reflecting cost savings from downsizing and productivity improvement, offset by the elevated costs of finance transformation, loss of $135 million, compared with a gain of $318 million.

Depreciation and amortisation, as IT amortisation wound down and tenancies were exited following the simplification. Net finance costs decreased to $8 million, reflecting a lower average cost of debt and lower average net debt levels.

An OPAT loss of $200 million compared to a gain of $122 million in the prior period, a $7 million positive contribution from IBC operations, representing 12.6 cents per security. Moving to a summary of segment performance with the investment segment.

The segment performance was stable across key measures. Total earnings reflected a stable underlying performance.

Management EBITDA is reduced modestly to $48 million, reflecting lower fees and margins in Australia, offset by a stronger performance in Asia. Management EBITDA margin of 40.7% reduced from the pre-COVID FY25's four-year margin of 40.6%.

Co-investment dollars was lower due to a lower level of co-investment as a result of asset capitalisations. In the development segment, a return on investment was achieved, as there were limited completions in FS anticipated.

Capital was also transferred to the segment in relation to the announced development joint venture and the Comcentre project in Singapore, which is a joint venture with Singtel and, along with it, resulted in a $1 billion increase in the development capital balance to $2 billion. In the construction segment, revenue increased by 20%, reflecting a higher level of project activity, Melton Hospital and a number of data center projects.

EBITDA of $10 million. The segment achieved an EBITDA margin of 3.3%, reflecting continued strong performance from the second half.

Turning now to slide 13. The primary role of the capital release unit is to accelerate the release of date.

We've completed or announced $2.8 billion of CRU capital, including $500 million of new asset sales this half. CRU recorded an EBITDA loss of $284 million, which included the write-down of Communities Development Land, of $86 million pre-tax, in relation to tower risks in the exited international construction businesses of $44 million, and the underlying cost people costs, IT costs, legal costs, insurance.

The segment loss for the period of $525 million gain of $34 million, that included profits on capital recycling of $160 million that were not repeated this half. The CRU cost base is expected to reduce progressively as capital recycling and risks are resolved, although is expected to remain for FY26.

Initiatives, the release of capital will be a key enabler. This includes further reducing gearing, security holders, and creating capacity for disciplined reinvestment in accordance with our capital allocation framework, which highlights our cost savings achievements.

Net overheads to $197 million, a run rate of below $400 million. The full run rate benefit of FY25 cost savings and the early impact from further cost initiatives.

In the half, we actioned pre-tax run rate, with further cost savings to be actioned by the end of FY26 of about $50 million in savings target is expected seven. The targeted exit run rate for overheads of circa $350 million.

This will be achieved through the completion of and productivity initiatives of technology costs. 15.

We have provided a walk summarizing key cash flows for the period, rounded to the nearest $100 million, and outlined the key cash inflows to the IDC segments and CRU segment, excluding capital from a high period at $3.3 billion. Net debt for FY26 due to $3 billion of CRU and IBC transactions.

These include the CRX and the Crown Estate transactions, transactions underpin retirement living, UK build-to-rent assets and the recapitalisation of our APN and capital recycling on Victoria Cross Tower. Offsetting these inflows across CRU and IDC are gross corporate costs and other.

Achievement of our group gearing target of 15% is subject to successful completion of these outlined initiatives this year. Turning now to slide six liquidity.

FY26 reported gearing was 25.8%. Excluding this benefit, underlying group gearing was 32.9%.

The group maintains strong available liquidity of 3.3 billion, comprising 2.7 billion dollars of committed available undrawn debt and 600 million cash equivalents, providing balance sheet flexibility as is progressed. Debt maturities are well balanced with an average maturity of 2.5 years.

Credit ratings remains a priority. I'll now hand back to Tony.

18. The FY26 financial outlook.

FY26 remains a transitional year, with IDC earnings guidance maintained at 28 to 34 cents. The second half of earnings for IDC is expected to be stronger than the first half, supported by anticipated transactional profits.

ID will recover in FY27, supported by major development completions and strong construction initiatives across investments. as transient earnings volatility and associated financing costs are expected to reduce progressively, supporting the strengthening of the...

No guidance has been provided for CRU earnings per security in FY26, as the segment's focus remains on balancing value realisation and speed of execution for security holders. Capital recycling initiatives are targeting a total of 2 billion dollars recycling in FY26.

Additionally, the group's strong liquidity executing our recycling program with realising value for security holders, targeted to reduce to 15% by the end of FY26, subject to the completion of recycling initiatives. On costs, we're targeting an exit run rate of 300 by the end of FY26, reflecting 50 million dollars of targeted cost saving initiatives to be actioned throughout FY26.

Strengthening our balance sheet, returning capital to security holders and importantly redeploying capital for future growth in earnings in our IDC, moving to slide 19 and our medium-term growth and earnings profile from FY27 onwards. In investments, we expect to see mandated in FY27 and growing towards 50% by FY30.

We intend to 8 to 10% annually through the cycle, delivering scale. We currently have 2.8 billion dollars of available capital to deploy in the near term, a billion of further capital supporting fund and future earnings growth.

Investor demand remains strong in a number of our key core funds and mandates, where we have demonstrated capability, allowing Lendlease to deliver differentiated investment products. In development, we're looking to secure more than 5 billion dollars of development projects in the second half of FY26, a 10 billion dollar-plus target.

We expect this momentum to continue with four better per annum in FY27 and beyond. In FY24, 4.5 billion dollars of development completions, expecting to receive cash and profits for Circular Quay in Sydney and the Regatta in Victoria Harbour.

We'll also generate new development capital, like master developer on both the joint venture with the Crown Estate and project for C Capital. In FY28, there are 3.9 billion dollars of completions targeted including Comcentre in...

Lendlease should earn ongoing development management fees from its joint venture, the JV profits from plot sales, and will unlock potential development opportunities from its pipeline. This includes more than 20 billion dollars of future investment product.

In construction, reach over 4.5 billion dollars in FY27, 5 billion dollars by FY28, supported by strong work. We also expect to sustainably deliver EBITDA margins both a disciplined approach to project work.

Additionally, the group will benefit from working capital inflows as these key drivers provide confidence in the outlook for the... Moving to slide 20.

In closing, my management team and I remain committed to the 2024 strategy and our stated FY26 objectives. We continue to build momentum across our investments, development and construction segments.

Throughout the half, we continue to execute on announced in May 2024, and we continue to lay the groundwork for FY27 and beyond and have strong visibility to earnings in coming years. Remains unchanged with a continued focus on disciplined execution, performance and long-term value creation for our customers and security holders.

Finally, I want to thank our hardworking and talented Lendlease people for turning this great company around. Their efforts in delivering to the future success of the business, and I'm personally committed we achieve our FY26 targets and continue building the momentum needed for long-term success.

We'll now open up for analyst questions.

Simon, thanks for your time, and best of luck to you, Simon, going forward. To the guidance range for IDC, the 28 to 34 cents.

If you could just talk between now and the end of the year, that kind of drives the top...

Perhaps I'll have first go at that. We delivered 4.6 cents per security.

The 28 to 34 cents per security range for IDC, mathematically, forward at 21.4 cents per security. The outcome of that range is primarily dependent on underlying operational delivery across investments, development and construction, timing of TRX and the completion timing of the Crown Estate.

Bottom of the range assumes more conservative, the top of the range assumes those major completions occur in FY26.

Thank you. My second one on the provision in the period.

Firstly, could you just reiterate how much of that is non-cash? Then secondly, in land parcel, have discussions with the land parcel owner stopped in terms of...

The non-cash was 180, it was 136 million for the provisions on the international construction. In terms of to have discussions with the landowner...

I would... The write-down of the community's parcels, absolutely the provisioning on the international construction cost will be a timing difference.

That will flow into cash outflows in the future.

Hi, good morning, guys. Hey, there was a lot of detail in the presentation regarding asset sales, et cetera, and you put a number, right, for the second half.

If I were to get you to dumb it down for me, guys, and split the three billion, can you give me an indication as to how much of the three billion dollars is stock coming through the door, how much of the three billion bucks is in the final stages of discussions, probably closer to the sale campaign? So

firstly, the joint ventures with Crown Estates and TRX are contracted, and we're working through 40-odd million there. We've announced three exclusive transactions, so that's ISRent and the recapitalisation of AWPF, which will deliver over a billion dollars.

Then we've called out Victoria to recycle some of our capital in that asset, and a number of other investments, so that other group makes up the remainder. All those transactions are underway at the moment.

That's quite clear. Next question, on the actual result, more details on one.

I think you called out there was an interest expense benefit as a result of the hybrids in the first half. Can I just get an impact of that benefit?

Part two of my question, only in dollar benefit from a reversal of a prior period impairment that came through in the first half, can you what that is?

The hybrid benefit in the first half is nine million.

With our

kind of relatively late issuances in terms of during the second quarter.

That's fine.

So

nine million bucks was booked through as a dividend rather than

the hybrids in the market.

And

nest on development, as we're progressing in different development projects, there has been some provisions which have reversed to progress those. We'll keep the market informed.

The 47 million dollars impact, sorry. Your NPAT increased by 47 million dollars, reversal, that fair way?

That's the way I did look at it.

Thanks, guys. Just a final one, it's just a follow-up on the previous guy's question, Simon.

I think when you were talking about continued underlying operational delivery across investments and completion of TRX and Crown Estate, I thought TRX was in.

No, crew were flagged that once the TRX is a funds management product, there was negligible profits, as we'd call that, on the asset. It was on the ASX slide.

That also timing around capital and the impact that has on the Crown Estate JV is now clearly in IDC, sits within CRU. The residual...

IDC.

Okay.

In terms of ordering, it would be firstly underlying operational delivery across IDC, second completion timing of the Crown Estate JV makes the kind of the three major components.

Your

Thanks for the presentation, Tony. I just got a question for Simon.

Could you clarify the $44 million post-tax? What does that relate to?

Secondly, is that a net number? Inclusive of...

Thanks.

It's not a net number. It relates to a longstanding project that previously had ongoing liability.

quantify that liability sort of late in the period. And

secondly, on APPF Retail, as I said on the current situation with respect to providing unit holders with liquidity and the situation, and also comment on whether Lendlease intends to retain its $200 million stake in the fund.

Yes, we've been working through liquidity. We're pleased that we have now to recapitalise the AWPF fund, and we intend to take in that fund as part of the recapitalisation, as I noted earlier.

And

Could that come through, just to clarify, in the second half, or is it just too early?

We're anticipating to complete the recapitalisation.

Right. Thanks, guys.

Hi. Good morning, Tony and Simon and Simon best endeavor.

I just wanted to get a sense, with crew, what's the per annum that you just need to sort of bear? It looks like it's half.

How do we think about that if you're not actually delivering any capital profit through the year?

You're right. That's roughly the number if you back out the provisions.

About three quarters of that really is kind of direct expense, which relates to... There's another sort of allocation, a central allocation from the center in managing our CRU.

Those balances are required. Those costs are required to manage the capital.

There's still substantial capital being delivered within CU and risk being managed within CRU. Clearly, and one would expect progressively, that will be managed down, recycled.

Tony, I'm not sure if there's anything you want to add?

No, look, I think the key focus there is they are people, as Simon, people, insurance, legal, technology costs that are making round down and aim to complete the crew developments. We will be progressively targeting that cost base.

Costs to come down overall by another 50, and we'll continue to work through that as we progressively execute on CRU.

Provided it's pretty helpful sort of medium-term thinking or 27-28 thinking in your prepared remarks, next year you're talking about an aggressive cost reduction. Is that the way, just from your comments then?

I think crew, the purpose of the CRU was intended for Camry purpose, we're very focused on completing that. We set ourselves a target to progress 500.

We've got one and a half to still complete, and so there's the focus. At the same thing, progressively taking that cost out, and so we have holed down to a more manageable base for next year going forward.

I think, we are acutely aware obviously of those management costs. We're also acutely aware of our cost of capital.

Looking at any way possible really to accelerate that capital recycling through CRU, through... Okay.

And

my second question is around the global sea. It's been publicly announced, Simon and Tony, but you've obviously had construction move on.

I believe the chief risk officer of the development as well. Is anyone else at that senior leadership that I'm missing there and the confidence in the turnaround amid some of this challenge?

Look, each of the executives that went with Simon's personal or exploring other opportunities. We've got a great depth of talent.

I would say our new CFO, Angus, he was previously the controller and he's currently the CFO of the investment management, he now steps up into the CFO. Stephanie, Steph Graham's been in the organization for greater than 20 years.

She actually had been running the Australian crew team. Of course, as we've exited all international construction, to now step up to the CLC in that role.

Claire Jones, the CEO of the U.S. as we finish up those, she was looking to relocate back to Australia, and pleasingly Claire now steps into the organization.

There has been a number of moves, leadership in place to take the business forward for many years to come. capacity as an advisory role, he's going to help chair the CRU, as we called out, focus on executing our capital recycling plan.

Thanks, and good morning. Pretty consistently been higher than where you've guided.

Can you provide some color as to what production rates you anticipate in the second half?

Sure, thanks, Richard. I'll have a go at that.

Guide so much to kind of the half here until we gave a bit of an update, sort of pre-blackout. We've kind of landed where we said we would in terms of the link to the timing of the capital recycling transactions, many we alluded to.

If we kind of roll forward to, and again this sort of is how to sort of think about it on a forward-looking basis, sort of getting down to 15 percent, the hybrids. Clearly we have the three billion of CRU and IDC transactions, which are announced or underway, which we'll benefit from when they settle outflows.

Within IDC, it's a relatively standardized sort of outflow for the second half in terms of net production spend. It's expected to be approximately.

On the CRU side, we've got net production spend of approximately 200 million going out the door. Those amounts are fully incorporated, there's nothing particularly unusual about those.

The key is, in terms of, is really around capital recycling and making sure that we continue to actions.

Thanks for the opportunity on the... Just repeat, because it just broke up.

Yes, better? Perfect.

Sorry about that. Just the impairments in the construction division, Simon, talking to, looking forward, can the non-occurrence of this, and possibly give us a bit more details of the impairment, please, and whether you sort of...

Sure,

I will just repeat that question just to make sure, because it's come a bit broken up. You've talked about the provisions that we have taken, in particular the community's gross provision of 130, international construction provision of 44.

Suraj. Firstly, communities, we did flag last year.

We talked about a communitys parcel of land being Gilead, adversely against that, and therefore we had flagged the risk around that 136 million, taking a provision against that, which is a non-cash item. What we are with the landowner as we are trying to come up with a position to work that forward.

That's the communities land parcel. On the callout, as Simon mentioned earlier, there was a risk around a project in the...

We have now taken a provision of 44 million against that. That's the two key matters and the provisions we have taken this period.

About the provision related risk in the business, can be uncertain, but just keen to get a sense of whether there's any potential risk... Anything, something on that?

Look again, I think it is breaking up a bit, Sharad, but what I would say is based on the known risk we know today, we've taken provisions for the organisation to cover that risk. What I would say is as we complete out different things that are ongoing, I'd say that risk is diminishing.

Calling out that we recently main part of the project, there is still some works that are ongoing there, but again that's remained within the provisions that we had

provided. With the Building Safety Act in the UK, similar story.

Through the passage of time, those risks do diminish, but clearly we'll continue to monitor and assess any other emerging risks in the balance of the portfolio over time, these risks either dissipate, become real and assessable.

Thank you.

with J.P. Morgan.

Sorry, just follow-up. Is 15 percent gearing target, is that predicated on two billion or investments?

Predicated on three billion of U and a billion in our IDC. As I think there was a question earlier, 640 relating to contracted JVs with the Crown Estates, and then the CRF, we're completing dollars related to the exclusivities of both three things that we...

PFR recapitalisation, UK build-to-rent. That was over a billion, and then the bus now that's completed, and a number of other transactions that make up that three billion.

Thank you, Darsh. On slide 42, you've got the breakdown on the CRU.

There seems to be limited progress on three international JV projects. Looks like you've invested about 500 mil once you adjust for the moving of the Crown Estates and common development.

Then the team projects and other haven't shown any progress either. Can you just, what's happening in each of those buckets and when you might start getting some of that capital back?

There are a number of projects that we called out at the strategy day that said we needed some billion dollars of further capital that needed to be invested, and they related to things that related to, one, Java, that related to the Italian, got various things occurring at MIND in partnership with Capital Partners and also Alphington & Park. Each in a way, Richard, because there's capital and production capital that's being spent.

Simon called out a further $200 million of production capital in the CRU that needs to be spent in the period. As we're through the period alone, there is some $100 million of capital that we recycled from land holdings that sit within those joint ventures, complete, like Habitat and Java.

We will be looking to work out ways to divest some of the assets that are under development at MIND.

Apologies, just in terms of when the timing on more of that capital is going to get released, because it's obviously a big drag on... Yes, I don't know whether you can give us any more color?

So

Richard, $2 billion of CRU capital that we're aiming to recycle this year, we announced in the period, and that was 400 related to TRX and 100 related to Che. We're targeting another $1.5 billion in the second half of this year.

Thanks.

Again, thank you for joining today's half-year result and for your support over the last four and a half years, and I look forward to catching up with you over the coming weeks. Thank you.