Macquarie Group Limited ABN 94 122 169 279 No.1 Martin Place Telephone (61 2) 8232 3333 Sydney NSW 2000 Facsimile (61 2) 8232 7780 GPO Box 4294 Internet http://www.macquarie.com.au Sydney NSW 1164 AUSTRALIA MACQUARIE GROUP ROADSHOW PRESENTATION MARCH 2010 – Please find attached the Macquarie Group Roadshow presentation to be presented during March 2010 roadshows. Please note all information included in this presentation has previously been released to the Australian Securities Exchange (ASX). = Contacts: Investor Relations Stuart Green Karen Khadi +612 8232 8845 +612 8232 3548 =
Macquarie Group Limited Presentation to Investors and Analysts March 2010 Richard Sheppard, Deputy Managing Director Stuart Green, Head of Corporate Communications and Investor Relations
Disclaimer Disclaimer This material has been prepared for professional investors. The firm preparing this report has not taken into account any customer’s particular investment objectives, financial resources or other relevant circumstances and the opinions and recommendations herein are not intended to represent recommendations of particular investments to particular customers. All securities transactions involve risks, which include (among others) the risk of adverse or unanticipated market, financial or political developments and, in international transactions, currency risk. Due care and attention has been used in the preparation of forecast information. However, actual results may vary from forecasts and any variation may be materially positive or negative. Forecasts, by their very nature, are subject to uncertainty and contingencies many of which are outside the control of Macquarie Group Limited (‘Macquarie”). 2
Agenda 1. About Macquarie 2. Update and recent initiatives Operational Update -Macquarie Securities 3. -Macquarie Capital -Banking and Financial Services -Corporate and Asset Finance 4. Appendix 3
About Macquarie
About Macquarie � Global provider of banking, financial, advisory, investment and funds management services � Main business focus is providing products and services to clients � Listed on Australian Securities Exchange (ASX: MQG; ADR: MQBKY) � Regulated by APRA, Australian banking regulator, as non-operating holding company of a licensed Australian bank Assets under management $A198b 1 (including recently completed Delaware � acquisition, AUM increases to over $A342b 2 ) � Founded in 1969, currently operates in more than 70 office locations in 28 countries and employs over 14,400 people 3 1. As at 31 Dec 09. 2. Dec 09 pro-forma AUM includes Delaware acquisition (approx $A149b 31 Dec 09 balance converted using 31 Dec 09 exchange rates). 3. Staff numbers at 31 Dec 5 09. Includes staff from Blackmont (closed 31 Dec 09, effective 1 Jan 10) and Delaware (closed 4 Jan 10, effective 5 Jan 10)
Major business activities Fixed Income, Currencies Macquarie Securities Banking and Financial Macquarie Capital and Commodities Group Services Group •Metals and energy capital •Corporate finance, including • Institutional cash equities •Financial advice advisory •Agricultural commodities • Derivatives/Delta1 trading •Cash management services •Equity capital markets •Equity markets -Institutional and retail •Stockbroking •Debt structuring and derivatives •Foreign exchange •Business banking distribution -Structured equity finance •Debt markets •Investment products •Specialised fund -Arbitrage trading management •Futures •Administrative and portfolio -Synthetic products services •Private equity placements •Credit trading -Global securities finance •Principal products •Emerging markets Real Estate Banking Corporate and Asset Macquarie Funds Group Division Finance Division •Structured corporate debt • Management of funds in: •Real estate investment financing -Equities •Real estate development and •Acquisition of secondary asset management -Fixed income, currency and market corporate debt commodities •Real estate project and •Traditional equipment leasing development finance -Listed infrastructure •Specialised asset finance -Listed real estate •Asset lifecycle services -Private equity and hedge •Equipment trading and fund of funds remarketing • Affiliated managers • Investment solutions and distribution 6
More than 13,200 staff in 28 countries 1 Approximately 14,400 staff including Delaware and Blackmont acquisitions 2 EMEA ASIA PACIFIC AMERICAS 1,456 staff 2,414 staff 2,267 staff Beijing Seoul Tokyo Shanghai Calgary Vancouver Taipei Hsinchu Hong Kong Seattle TorontoMontreal San Francisco Dublin Manila Bloomfield Hills Stockholm Gurgaon San Jose Chicago London Amsterdam Boston Irvine Bristol Bangkok Frankfurt Moscow 4 Hartford Los Angeles Denver Paris New York Vienna Mumbai Carlsbad San Diego Zurich Luxembourg Atlanta Geneva Dallas Kuala Lumpur Munich Austin Singapore Houston Jacksonville Miami Jakarta Mexico Dubai Abu Dhabi Sunshine Coast Brisbane Gold Coast Perth Newcastle Adelaide Sydney Melbourne Canberra Auckland Wellington Christchurch Riberao Preto Sao Paulo Buenos Aires Johannesburg 3 Cape Town AUSTRALIA 7,086 staff 7 1. Staff numbers at 31 Dec 09. 2. Pro-forma figure includes staff from Blackmont (closed 31 Dec 09, effective 1 Jan 10) and Delaware (closed 4 Jan 10, effective 5 Jan 10) . 3. Excludes staff in Macquarie First South joint venture. 4. Staff seconded to joint venture not included in official headcount (Moscow: Macquarie Renaissance Medallist)
Financial performance Half Year ended 30 September 2009 Profit of $A479m Operating income of $A3,105m $Am $Am 21% decrease on 1H09 5% increase on 1H09 1,200 6,000 800 4,000 400 2,000 0 0 1H08 2H08 1H09 2H09 1H10 1H08 2H08 1H09 2H09 1H10 $A $A DPS of $A0.86 EPS of $A1.50 3.50 7.00 41% decrease on 1H09 31% decrease on 1H09 3.00 6.00 2.50 5.00 2.00 4.00 1.50 3.00 1.00 2.00 0.50 1.00 0.00 0.00 1H08 2H08 1H09 2H09 1H10 1H08 2H08 1H09 2H09 1H10 8
Diversified income Operating income by source Operating income before writedowns, impairments, equity accounted gains/(losses) and one-off items Institutional and retail 12 months to 31 Mar 09 6 months to 30 Sep 09 cash equities $A7.2b 1 $A3.5b Equity derivatives Macquarie-managed funds (includes base and performance fees, M&A advisory and 15% 15% 17% underwriting and asset sales) 19% 20% 16% 17% Securities funds 6% management 12% and administration 12% 11% 18% 13% Third party M&A and advisory income 14% Asset and equity investments 15% 12% 13% 8% 10% 6% Commodities, resources 7% 7% and foreign exchange 10% 10% 7% Lending, leasing and margin related income 9 1. FY09 comparatives have been restated to conform with 1H10 presentation by excluding equity accounted gains (FY09 $A468m).
Assets under management of $A342b 1 � Dec 09 AUM decreased by $A18b mainly due to the internalisation of MAp and the strengthening of the $A since Sep 09 � Significant increase in Dec 09 pro-forma AUM relating to Delaware acquisition by Macquarie Funds Group 4 00 $Ab Proforma adjustments: Delaware Investments, MIG $A342b 1 Banking and Financial Services 3 50 2 Macquarie Funds Group Real Estate B anking Division 3 00 Macquarie Capital Funds $A243b 2 50 $A232b $A216b $A197b $A198b 2 00 $A140b 1 50 1 00 50 0 2006 2007 2008 200 9 Sep 09 D ec 09 D ec 09 pro-forma 10 1. Dec 09 pro-forma AUM includes Delaware acquisition (approx $A149b 31 Dec 09 balance converted using 31 Dec 09 exchange rates) and MIG restructure impact (decrease of approx $A6b). 2. The Macquarie CMT, included in BFS AUM above, is a BFS product that is managed by MFG
Update and recent initiatives
Overview � Economic conditions continue to trend back to normal � As foreshadowed in October, strong market conditions experienced in 1H10 have moderated in certain areas including Australian ECM and credit businesses Dec qtr total ASX market turnover down 12% on Sep qtr; Dec qtr total Asian equities (ex-Japan) ⎯ market turnover down 11% on Sep qtr Dec qtr Australian ECM down 26% on Sep qtr; Dec qtr Australian M&A up 33% on Sep qtr 1 ⎯ Continuing credit spread contraction across the debt spectrum ⎯ Improved inflows across wholesale fund products ⎯ Improved inflows across retail WRAP platform and deposits ⎯ Growth in lending, leasing and loan volumes ⎯ � Dec qtr operating result for MSG, MacCap, FICC and CAF down on strong Sep qtr but up on Jun qtr � BFS and MFG Dec qtr operating result broadly consistent with prior quarters, with growth in funds under management and clients 12 1. Thomson Reuters, deals completed basis.
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