Macquarie Group, Ltd. · ASX:MQG
Macquarie — Shareholder Meeting (July 2022)
48 slides from Macquarie's shareholder meeting presentation, Jul 28, 2022
Slide 1: 2022 Annual General Meeting
2022 Annual General Meeting Macquarie Group Limited 28 July 2022 1
Slide 2: Disclaimer
Disclaimer The material in this presentation has been prepared by Macquarie Group Limited ABN 94 122 169 279 (MGL) and is general background information about Macquarie’s (MGL and its subsidiaries) activities current as at the date of this presentation. This information is given in summary form and
Slide 3: Agenda
Agenda 01 02 03 Chair’s Update Overview of 1Q23 Update FY22 04 05 06 FY23 Outlook Formal Glossary Business 3
Slide 4: Chair's Update
01 Chair's Update Glenn Stevens Chairman 4
Slide 5: Financial performance
Chair's Update Overview of FY22 1Q23 Update FY23 Outlook Formal Business Glossary Financial performance Operating income FY22 Profit FY22 $A17,324m $A4,706m $Am $Am 20,000 36 % 5,000 56 % 16,000 ON FY21 4,000 ON FY21 12,000 3,000 8,000 2,000 4,000 1,000 - - FY18 FY19 FY20 FY21 FY22 FY18 FY19 FY20 FY
Slide 6: Final dividend
Chair's Update Overview of FY22 1Q23 Update FY23 Outlook Formal Business Glossary Final dividend 2H22 Ordinary Dividend FY22 Ordinary Dividend $A3.50 $A6.22 FROM FROM $A3.35 $A4.70 (40% franked) (40% franked) (40% franked) IN 2H21 (40% franked) IN FY21 2H22 Record Date Payout Ratio 17 May 22 DRP sha
Slide 7: Risk culture and conduct
Chair's Update Overview of FY22 1Q23 Update FY23 Outlook Formal Business Glossary Risk culture and conduct ● Macquarie’s long-established risk culture and our management of conduct risk is well embedded across all parts of the organisation. Key aspects include: ‒ Primary responsibility resides at th
Slide 8: Risk culture and conduct in practice
Chair's Update Overview of FY22 1Q23 Update FY23 Outlook Formal Business Glossary Risk culture and conduct in practice Operating and Central Service Groups, Risk Management Group (RMG), Integrity Office and Human Resources work together to maintain our strong risk culture and conduct Recent risk cul
Slide 9: What We Stand For
What We Stand For Our purpose explains why we do business Empowering people to innovate and invest for a better future Enabled by three long-held principles that define how we do business Opportunity | Accountability | Integrity 9 9
Slide 10: Environmental, Social and Governance (ESG)
Chair's Update Overview of FY22 1Q23 Update FY23 Outlook Formal Business Glossary Environmental, Social and Governance (ESG) Macquarie’s ESG commitment reflects our responsibility to clients, shareholders, communities, our people and the environment in which we operate Environmental Social Governanc
Slide 11: Environmental, Social and Governance
Chair's Update Overview of FY22 1Q23 Update FY23 Outlook Formal Business Glossary Environmental, Social and Governance Environmental Climate Environmental and Sustainability Client People Business conduct Macquarie and social risk change social financing in direct experience and workplace and ethics
Slide 12: Driving global climate solutions
Chair's Update Overview of FY22 1Q23 Update FY23 Outlook Formal Business Glossary Driving global climate solutions Highlights of activities over the past year Secured ScotWind leasing rights to develop the 2 GW offshore in windfarm Confirmed plans to support £12+ billion of sustainable Announced int
Slide 13: Our commitment to net zero
Chair's Update Overview of FY22 1Q23 Update FY23 Outlook Formal Business Glossary Our commitment to net zero Macquarie committed to align our financing activities with the global goal of net zero by 2050 and we are on track to release our first Net Zero Plan by the end of 2022 01 We have been workin
Slide 14: Diversity, Equity & Inclusion
Chair's Update Overview of FY22 1Q23 Update FY23 Outlook Formal Business Glossary Diversity, Equity & Inclusion Macquarie recognises that the diversity of our people is one of our greatest strengths. An inclusive, equitable workplace enables us to deliver more innovative and sustainable solutions fo
Slide 15: Macquarie Group Foundation
Chair's Update Overview of FY22 1Q23 Update FY23 Outlook Formal Business Glossary Macquarie Group Foundation The Foundation encourages our people to give back to the communities in which they live and work by contributing service, leadership, and financial support to the causes and community serving
Slide 16: Macquarie Bank Limited Board update
Chair's Update Overview of FY22 1Q23 Update FY23 Outlook Formal Business Glossary Macquarie Bank Limited Board update Enhancing Macquarie Bank Limited’s (MBL) governance, culture and structure ● Macquarie has been working with APRA to strengthen the voice of MBL within the Group, and making good pro
Slide 17: Board elections and retirements
Chair's Update Overview of FY22 1Q23 Update FY23 Outlook Formal Business Glossary Board elections and retirements Directors seeking Directors seeking re-election FY22 Director election to the Board to the Board retirements Michelle Hinchliffe Jillian Broadbent Philip Coffey Peter Warne 17
Slide 18: Overview of FY22
02 Overview of FY22 Shemara Wikramanayake Managing Director and Chief Executive Officer 18
Slide 19: 53 years of unbroken profitability
Chair's Update Overview of FY22 1Q23 Update FY23 Outlook Formal Business Glossary 53 years of unbroken profitability $Ab 5.0 TSR % Total Earnings Dividends MSCI World MSCI 14,000 Performance shareholder per share per share Diversified Capital World $A4,706 million (ASX: MQG) return2 CAGR CAGR ASX 20
Slide 20: FY22 result: $A4,706m up 56% on FY21
Chair's Update Overview of FY22 1Q23 Update FY23 Outlook Formal Business Glossary FY22 result: $A4,706m up 56% on FY21 2H22 1H22 2H22 v FY22 FY21 FY22 v $Am $Am 1H22 $Am $Am FY21 Net operating income 9,520 7,804 22% 17,324 12,774 36% Total operating expenses (5,716) (5,069) 13% (10,785) (8,867) 22%
Slide 21: FY22 net profit contribution from operating groups
Chair's Update Overview of FY22 1Q23 Update FY23 Outlook Formal Business Glossary FY22 net profit contribution from operating groups $A9,462m up 55% on FY21 Annuity-style businesses Markets-facing businesses $A4,132m $A5,330m 25% 92% ON FY21 ON FY21 Non-Banking Group Macquarie Asset Management (MAM)
Slide 22: Diversification by region
Chair's Update Overview of FY22 1Q23 Update FY23 Outlook Formal Business Glossary Diversification by region International income 75% of total income1 Total staff2 18,133 of which 54% international. A further ~225,000 people employed across managed fund assets and investments3 Americas EMEA Asia Aust
Slide 23: Macquarie Asset Management
Chair's Update Overview of FY22 1Q23 Update FY23 Outlook Formal Business Glossary Macquarie Asset Awards & Private Public Management rankings Markets Investments Global specialist asset manager investing to deliver positive impact for $A238.0b 22% on Mar 21 $A535.1b 46% on Mar 21 everyone #1 Infrast
Slide 24: Banking and Financial Services
Chair's Update Overview of FY22 1Q23 Update FY23 Outlook Formal Business Glossary Banking and FY22 Financial Services awards A technology-driven Australian retail $A89.5b 34% on Mar 21 $A98.0b 21% on Mar 21 Home loan portfolio Total BFS deposits1 bank and wealth manager $A11.5b 13% on Mar 21 $A8.8b
Slide 25: Commodities and Global Markets
Chair's Update Overview of FY22 1Q23 Update FY23 Outlook Formal Business Glossary Commodities and FY22 Strong underlying client business Global Markets awards & rankings Commodity Financial Markets Global business offering capital and financing, Markets Foreign exchange, interest rates and credit ri
Slide 26: Macquarie Capital
Chair's Update Overview of FY22 1Q23 Update FY23 Outlook Formal Business Glossary Macquarie Capital FY22 Summary Transaction Activity rankings & Financial adviser to Sydney Aviation Advises and invests alongside clients awards Maintained a leading market position in ANZ across M&A in Alliance on its
Slide 27: Approximate business Basel III Capital and ROE
Chair's Update Overview of FY22 1Q23 Update FY23 Outlook Formal Business Glossary Approximate business Basel III Capital and ROE 31 Mar 22 APRA Basel III Capital1 Approx. FY22 Return on Approx. 15-year Average Operating Group @ 8.5% ($Ab) Ordinary Equity2 Return on Ordinary Equity3 Annuity-style bus
Slide 28: Business backed by strong funding and capital
Chair's Update Overview of FY22 1Q23 Update FY23 Outlook Formal Business Glossary Business backed by strong funding and capital MGL funded balance sheet APRA Basel III capital position7 Credit ratings 31 Mar 221 31 Mar 22 $Ab Group capital surplus Group capital surplus ST wholesale issued paper 13%
Slide 29: 1Q23 Update
03 1Q23 Update Shemara Wikramanayake Managing Director and Chief Executive Officer 29
Slide 30: 1Q23 Overview
Chair's Update Overview of FY22 1Q23 Update FY23 Outlook Formal Business Glossary 1Q23 Overview Favourable trading conditions with 1Q23 operating group contribution up on the prior corresponding period (pcp) (1Q22), although trading conditions did soften during the quarter ● Macquarie’s annuity-styl
Slide 31: 1Q23 Overview
Chair's Update Overview of FY22 1Q23 Update FY23 Outlook Formal Business Glossary 1Q23 Overview Annuity-style businesses Macquarie Asset Management Banking and Financial Services ~32% FY22 contribution2 1 ~11% FY22 contribution2 ● AUM3 of $A773.9b at Jun 22, broadly in line with Mar 22 ● Home loan p
Slide 32: 1Q23 Overview
Chair's Update Overview of FY22 1Q23 Update FY23 Outlook Formal Business Glossary 1Q23 Overview Markets-facing businesses Commodities and Global Markets Macquarie Capital ~41% FY22 contribution2 ~16% FY22 contribution2 1 ● Elevated volatility and commodity prices contributed to strong results ● 76 t
Slide 33: Funded balance sheet remains strong
Chair's Update Overview of FY22 1Q23 Update FY23 Outlook Formal Business Glossary Funded balance sheet remains strong Term liabilities exceed term assets 31 Mar 22 30 Jun 22 $Ab $Ab 300 300 Total customer deposits6 270 270 $A110.4b ST wholesale issued paper 12% ST wholesale issued paper 13% 9% 240 2
Slide 34: Basel III capital position
Chair's Update Overview of FY22 1Q23 Update FY23 Outlook Formal Business Glossary Basel III capital position ● APRA Basel III Group capital at Jun 22 of $A34.1b; Group capital surplus of $A10.1b1,2 ● APRA Basel III Level 2 CET1 ratio at Jun 22: 12.3%; Harmonised Basel III Level 2 CET1 ratio: 15.6% G
Slide 35: Business capital requirements
Chair's Update Overview of FY22 1Q23 Update FY23 Outlook Formal Business Glossary Business capital requirements1 1Q23 business capital requirement growth of $A0.4b excluding FX movements $Ab 25.0 0.8 $A24.1b 24.0 0.0 0.1 1Q23 key drivers 0.4 0.1 0.0 0.3 23.0 1.5 $A22.9b (0.1) MAM Broadly offset by (
Slide 36: Capital management update
Chair's Update Overview of FY22 1Q23 Update FY23 Outlook Formal Business Glossary Capital management update Dividend Reinvestment Plan (DRP) ● The Board determined that a 1.5% discount would apply to shares allocated under the DRP for the 2H22 dividend ● On 4 Jul 22, 2,736,737 ordinary shares were i
Slide 37: Strong regulatory ratios
Chair's Update Overview of FY22 1Q23 Update FY23 Outlook Formal Business Glossary Strong regulatory ratios Bank Group Level 2 Ratios (Jun 22) 17.5% 220.0% 7.5% 130.0% 15.6% 1 203% 14.0% 180.0% 6.0% 5.7% 120.0% 12.3% 5.1% 114% 2 10.5% 4.5% 140.0% 110.0% 7.0% 3.0% 100.0% 100.0% 3.5% 1.5% 60.0% 90.0% 0
Slide 38: Regulatory update
Chair's Update Overview of FY22 1Q23 Update FY23 Outlook Formal Business Glossary Regulatory update Australia APRA has finalised or is in the process of implementing changes to a number of prudential standards1. Macquarie notes the following key updates: • On 27 Oct 21, APRA provided an update on th
Slide 39: FY23 Outlook
04 FY23 Outlook Shemara Wikramanayake Managing Director and Chief Executive Officer 39
Slide 40: Short-term outlook
Chair's Update Overview of FY22 1Q23 Update FY23 Outlook Formal Business Glossary Short-term outlook Factors impacting short-term outlook Annuity-style businesses Markets-facing businesses Non-Banking Group Macquarie Asset Management (MAM) Macquarie Capital (MacCap) • Base fees expected to be broadl
Slide 41: Short-term outlook
Chair's Update Overview of FY22 1Q23 Update FY23 Outlook Formal Business Glossary Short-term outlook The range of factors that may influence our short-term outlook include: ● Market conditions including: significant volatility events, global inflation and interest rates, and the impact of geopolitic
Slide 42: Medium-term outlook
Chair's Update Overview of FY22 1Q23 Update FY23 Outlook Formal Business Glossary Medium-term outlook Macquarie remains well-positioned to deliver superior performance in the medium term Deep expertise in major markets Build on our strength in business and geographic diversity and continue to adapt
Slide 43: Medium term
Chair's Update Overview of FY22 1Q23 Update FY23 Outlook Formal Business Glossary Medium term Annuity-style businesses Markets-facing businesses Non-Banking Group Macquarie Asset Management (MAM) Macquarie Capital (MacCap) ● Global specialist asset manager, well-positioned to respond to current mark
Slide 44: Formal Business
05 Formal Business Glenn Stevens Chairman 44
Slide 45: 2022 Annual General Meeting
2022 Annual General Meeting Macquarie Group Limited 28 July 2022 45
Slide 46: Glossary
© macauarRie LO > - © a rm ao) Oo O
Slide 47: Glossary
Chair's Update Overview of FY22 1Q23 Update FY23 Outlook Formal Business Glossary Glossary $A / AUD Australian Dollar CGM Commodities and Global Markets $US / USD United States Dollar CLF Committed Liquidity Facility £ / GBP Pound Sterling CMA Cash Management Account € Euro CRM Customer Relationship
Slide 48: Glossary
Chair's Update Overview of FY22 1Q23 Update FY23 Outlook Formal Business Glossary Glossary IPO Initial Public Offering MSCIF Macquarie Super Core Infrastructure Fund IRB Internal Ratings-Based MW Mega Watt IFRS International Financial Reporting Standards MWDC Mega Watt direct current IMTT Internatio