Macquarie Group, Ltd. · ASX:MQG
Macquarie — Shareholder Meeting (July 2018)
51 slides from Macquarie's shareholder meeting presentation, Jul 26, 2018
Slide 1: Macquarie Group Limited 2018 Annual General Meeting
For personal use only Macquarie Group Limited 2018 Annual General Meeting 26 July 2018 © MACQUARIE 2018
Slide 2: Disclaimer
Disclaimer For personal use only 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 give
Slide 3: Agenda
For personal use only Agenda 01 FY18 Overview 02 Overview of the Result 03 1Q19 Update 04 FY19 Outlook 05 Appendices 3
Slide 4: FY18 Overview
For personal use only 01 FY18 Overview Peter Warne Chairman 4
Slide 5: Key management changes
Macquarie Group Limited 2018 Annual General Meeting macquarie.com FY18 Overview Overview of the Result 1Q19 Update FY19 Outlook Appendices Key management changes For personal use only • The Board confirms Nicholas Moore’s decision to retire as Managing Director and CEO of Macquarie Group • Mr Mo
Slide 6: Board and management changes
Macquarie Group Limited 2018 Annual General Meeting macquarie.com FY18 Overview Overview of the Result 1Q19 Update FY19 Outlook Appendices Board and management changes For personal use only Board appointments Key management changes • Effective 1 November 17, Glenn Stevens was • In October 2017,
Slide 7: Performance reflects the strength of Macquarie's global platform and diversity of business mix
Macquarie Group Limited 2018 Annual General Meeting macquarie.com FY18 Overview Overview of the Result 1Q19 Update FY19 Outlook Appendices Performance reflects the strength of Macquarie’s global For personal use only platform and the diversity of its business mix • In FY18, Macquarie's businesse
Slide 8: Financial performance
Macquarie Group Limited 2018 Annual General Meeting macquarie.com FY18 Overview Overview of the Result 1Q19 Update FY19 Outlook Appendices Financial performance For personal use only Operating income Profit FY18 FY18 $Am $Am 12,000 $A10,920m 3,000 $A2,557m 2,000 8,000 5% ON FY17 1,000 15 % ON FY
Slide 9: FY18 dividend
Macquarie Group Limited 2018 Annual General Meeting macquarie.com FY18 Overview Overview of the Result 1Q19 Update FY19 Outlook Appendices FY18 dividend For personal use only FY18 ORDINARY DIVIDEND FROM 2H18 ORDINARY DIVIDEND FROM $A 5.25 $A4.70 (45% franked) $A 3.20 $A2.05 (45% franked) (45% fr
Slide 10: Years of unbroken profitability
Macquarie Group Limited 2018 Annual General Meeting macquarie.com FY18 Overview Overview of the Result 1Q19 Update FY19 Outlook Appendices 49 years of unbroken profitability For personal use only $Ab 3.0 Total Earnings MSCI World $A2,557m shareholder per share Dividends per Diversified Capital M
Slide 11: Risk culture and conduct
Macquarie Group Limited 2018 Annual General Meeting macquarie.com FY18 Overview Overview of the Result 1Q19 Update FY19 Outlook Appendices Risk culture and conduct For personal use only • Macquarie’s unbroken profitability is underpinned by our long-standing risk culture. This is reflected in ou
Slide 12: Risk culture and conduct in practice
Macquarie Group Limited 2018 Annual General Meeting macquarie.com FY18 Overview Overview of the Result 1Q19 Update FY19 Outlook Appendices Risk culture and conduct in practice For personal use only Our risk management approach has been largely consistent since inception and we continue to monito
Slide 13: A longstanding commitment to renewable energy
Macquarie Group Limited 2018 Annual General Meeting macquarie.com FY18 Overview Overview of the Result 1Q19 Update FY19 Outlook Appendices A longstanding commitment to renewable energy For personal use only • Macquarie has a substantial and longstanding commitment to the renewable energy and cle
Slide 14: A longstanding commitment to renewable energy
Macquarie Group Limited 2018 Annual General Meeting macquarie.com FY18 Overview Overview of the Result 1Q19 Update FY19 Outlook Appendices A longstanding commitment to renewable energy For personal use only Green Investment Group Other global highlights • In Aug 17, a Macquarie-led consortium ac
Slide 15: Royal Commission
Macquarie Group Limited 2018 Annual General Meeting macquarie.com FY18 Overview Overview of the Result 1Q19 Update FY19 Outlook Appendices Royal Commission For personal use only • The Royal Commission into Misconduct in the Banking, Superannuation and Financial Services Industry has been underwa
Slide 16: Macquarie Group Foundation
Macquarie Group Limited 2018 Annual General Meeting macquarie.com FY18 Overview Overview of the Result 1Q19 Update FY19 Outlook Appendices Macquarie Group Foundation For personal use only Providing support to hundreds of community organisations globally each year FY18 $A28.3m donated by staff an
Slide 17: Macquarie in the community
Macquarie Group Limited 2018 Annual General Meeting macquarie.com FY18 Overview Overview of the Result 1Q19 Update FY19 Outlook Appendices Macquarie in the community For personal use only Discover Macquarie www.macquarie.com/discover 17
Slide 18: Overview of the FY18 Result
For personal use only 02 Overview of the FY18 Result Nicholas Moore Managing Director and Chief Executive Officer 18
Slide 19: FY18 result: $A2,557m up 15% on FY17
Macquarie Group Limited 2018 Annual General Meeting macquarie.com FY18 Overview Overview of the Result 1Q19 Update FY19 Outlook Appendices FY18 result: $A2,557m up 15% on FY17 For personal use only FY17 FY18 FY18 v FY17 $Am $Am Net operating income 10,364 10,920 5% Operating profit before income
Slide 20: Where we generate our income
Macquarie Group Limited 2018 Annual General Meeting macquarie.com FY18 Overview Overview of the Result 1Q19 Update FY19 Outlook Appendices Where we generate our income For personal use only Asia International income 67% of total income1 Staff Total staff 14,469; International staff 54% of total
Slide 21: Diverse business mix
Macquarie Group Limited 2018 Annual General Meeting macquarie.com FY18 Overview Overview of the Result 1Q19 Update FY19 Outlook Appendices ABOUT MACQUARIE Diverse business mix For personal use only Annuity-style businesses (~70%) Capital markets facing businesses (~30%) Macquarie Asset Managemen
Slide 22: Macquarie Asset Management
Macquarie Group Limited 2018 Annual General Meeting macquarie.com FY18 Overview Overview of the Result 1Q19 Update FY19 Outlook Appendices Macquarie Asset Management For personal use only MIRA MIM MSIS Net profit Grew equity under Funded projects 10% $A333.5b $A1.7b management to $A86.2b 12% in
Slide 23: Macquarie Asset Management: Making a contribution to our communities
Macquarie Group Limited 2018 Annual General Meeting macquarie.com FY18 Overview Overview of the Result 1Q19 Update FY19 Outlook Appendices Macquarie Asset Management Making a contribution to our communities For personal use only Copenhagen Airport Thames Water Invested >DKK10b across Goethals Br
Slide 24: Corporate and Asset Finance
Macquarie Group Limited 2018 Annual General Meeting macquarie.com FY18 Overview Overview of the Result 1Q19 Update FY19 Outlook Appendices Corporate and Asset Finance For personal use only Net profit Leading global 20yrs+ aircraft lessor $A37b+ 1% $A1.2b of Asset Finance expertise 196 owned plan
Slide 25: Corporate and Asset Finance: Making a contribution to our communities
Macquarie Group Limited 2018 Annual General Meeting macquarie.com FY18 Overview Overview of the Result 1Q19 Update FY19 Outlook Appendices Corporate and Asset Finance Making a contribution to our communities For personal use only Smart meters Installed in ~6m UK homes and commercial Rooftop sola
Slide 26: Banking and Financial Services
Macquarie Group Limited 2018 Annual General Meeting macquarie.com FY18 Overview Overview of the Result 1Q19 Update FY19 Outlook Appendices Banking and Financial Services For personal use only Net profit Canstar Best Rebuilt our tech stack 5 star rating and are the first to offer 9% Digital Banki
Slide 27: Banking and Financial Services: Making a contribution to our communities
Macquarie Group Limited 2018 Annual General Meeting macquarie.com FY18 Overview Overview of the Result 1Q19 Update FY19 Outlook Appendices Banking and Financial Services Making a contribution to our communities For personal use only Giving customers choice Innovating property buying Empowering c
Slide 28: Commodities and Global Markets
Macquarie Group Limited 2018 Annual General Meeting macquarie.com FY18 Overview Overview of the Result 1Q19 Update FY19 Outlook Appendices Commodities and Global Markets For personal use only Net profit No.1 Differentiated 30yrs+ for IPOs in Australia2 insights on 6% in metals, equities, $A910m
Slide 29: Commodities and Global Markets: Making a contribution to our communities
Macquarie Group Limited 2018 Annual General Meeting macquarie.com FY18 Overview Overview of the Result 1Q19 Update FY19 Outlook Appendices Commodities and Global Markets Making a contribution to our communities For personal use only Powering the UK using biomass World’s largest biomass plant red
Slide 30: Macquarie Capital
Macquarie Group Limited 2018 Annual General Meeting macquarie.com FY18 Overview Overview of the Result 1Q19 Update FY19 Outlook Appendices Macquarie Capital For personal use only Net profit No.1 Global leader 30+ 45% $A700m in green energy green energy projects under development completed M&A de
Slide 31: Macquarie Capital: Making a contribution to our communities
Macquarie Group Limited 2018 Annual General Meeting macquarie.com FY18 Overview Overview of the Result 1Q19 Update FY19 Outlook Appendices Macquarie Capital Making a contribution to our communities For personal use only Markbygden Ett Europe’s largest onshore wind farm providing 650MW of renewab
Slide 32: Business backed by strong funding and capital
Macquarie Group Limited 2018 Annual General Meeting macquarie.com FY18 Overview Overview of the Result 1Q19 Update FY19 Outlook Appendices Business backed by strong funding and capital For personal use only MGL funded balance sheet APRA Basel III surplus capital6 Credit ratings 31 March 2018 31
Slide 33: 1Q19 Update
For personal use only 03 1Q19 Update Nicholas Moore Managing Director and Chief Executive Officer 33
Slide 34: 1Q19 Macquarie update
Macquarie Group Limited 2018 Annual General Meeting macquarie.com FY18 Overview Overview of the Result 1Q19 Update FY19 Outlook Appendices 1Q19 Macquarie update For personal use only • Operating groups performing well, in line with expectations • 1Q19 operating group contribution1 up on pcp and
Slide 35: Annuity-style businesses 1Q19 Update
Macquarie Group Limited 2018 Annual General Meeting macquarie.com FY18 Overview Overview of the Result 1Q19 Update FY19 Outlook Appendices Annuity-style businesses 1Q19 Update For personal use only FY18 contribution1 Activity during the quarter • AUM of $A534.1b, up 8% on Mar 18, largely due to
Slide 36: Capital markets facing businesses 1Q19 Update
Macquarie Group Limited 2018 Annual General Meeting macquarie.com FY18 Overview Overview of the Result 1Q19 Update FY19 Outlook Appendices Capital markets facing businesses 1Q19 Update For personal use only FY18 contribution1 Activity during the quarter • Increased client hedging and trading opp
Slide 37: Funded balance sheet remains strong
Macquarie Group Limited 2018 Annual General Meeting macquarie.com FY18 Overview Overview of the Result 1Q19 Update FY19 Outlook Appendices Funded balance sheet remains strong For personal use only Term liabilities cover term assets 31 Mar 17 31 Mar 18 30 Jun 18 $Ab $Ab $Ab These charts represent
Slide 38: Basel III capital position
Macquarie Group Limited 2018 Annual General Meeting macquarie.com FY18 Overview Overview of the Result 1Q19 Update FY19 Outlook Appendices Basel III capital position For personal use only APRA Basel III Group capital at Jun 18 of $A18.8b, Group capital surplus of $A3.4b 1,2 $Ab Group regulatory
Slide 39: Strong regulatory ratios
Macquarie Group Limited 2018 Annual General Meeting macquarie.com FY18 Overview Overview of the Result 1Q19 Update FY19 Outlook Appendices Strong regulatory ratios For personal use only Bank Group (Jun 18) 17.5% 7.5% 190.0% 115.0% 6.4% 112% 14.0% 6.0% 160.0% 110.0% 12.8% 155% 5.6% 10.5% 4.5% 130
Slide 40: Regulatory and tax update
Macquarie Group Limited 2018 Annual General Meeting macquarie.com FY18 Overview Overview of the Result 1Q19 Update FY19 Outlook Appendices Regulatory and tax update For personal use only • Regulatory capital1 – In Jul 17 APRA provided guidance on the level of CET1 capital ratios for Australian b
Slide 41: Capital management update
Macquarie Group Limited 2018 Annual General Meeting macquarie.com FY18 Overview Overview of the Result 1Q19 Update FY19 Outlook Appendices Capital management update For personal use only • Share buyback – No buying occurred during 1Q19. Macquarie’s share buyback program remains in place, with an
Slide 42: FY19 Outlook
For personal use only 04 FY19 Outlook Nicholas Moore Managing Director and Chief Executive Officer 42
Slide 43: Factors impacting short-term outlook
Macquarie Group Limited 2018 Annual General Meeting macquarie.com FY18 Overview Overview of the Result 1Q19 Update FY19 Outlook Appendices Factors impacting short-term outlook For personal use only Annuity-style businesses Capital markets facing businesses Macquarie Asset Management (MAM) Commod
Slide 44: Short-term outlook
Macquarie Group Limited 2018 Annual General Meeting macquarie.com FY18 Overview Overview of the Result 1Q19 Update FY19 Outlook Appendices Short-term outlook For personal use only • The Group’s result for FY19 is currently expected to be broadly in line with FY18 • Our short-term outlook remains
Slide 45: Medium-term
Macquarie Group Limited 2018 Annual General Meeting macquarie.com FY18 Overview Overview of the Result 1Q19 Update FY19 Outlook Appendices Medium-term For personal use only • Macquarie remains well positioned to deliver superior performance in the medium-term • Deep expertise in major markets •
Slide 46: Approximate business Basel III Capital & ROE
Macquarie Group Limited 2018 Annual General Meeting macquarie.com FY18 Overview Overview of the Result 1Q19 Update FY19 Outlook Appendices Approximate business Basel III Capital & ROE For personal use only 31 Mar 18 1 APRA Basel III Capital Approx. FY18 Return Approx. 12-Year Average Operating G
Slide 47: Medium-term
Macquarie Group Limited 2018 Annual General Meeting macquarie.com FY18 Overview Overview of the Result 1Q19 Update FY19 Outlook Appendices Medium-term For personal use only Annuity-style businesses Capital markets facing businesses Macquarie Asset Management (MAM) Commodities and Global Markets
Slide 48: Appendices
For personal use only 05Appendices 48
Slide 49: Glossary
Macquarie Group Limited 2018 Annual General Meeting macquarie.com FY18 Overview Overview of the Result 1Q19 Update FY19 Outlook Appendices Glossary For personal use only $A / AUD Australian Dollar CCB Capital Conservation Buffer $US / USD United States Dollar CET1 Common Equity Tier 1 £ / GBP Po
Slide 50: Glossary
Macquarie Group Limited 2018 Annual General Meeting macquarie.com FY18 Overview Overview of the Result 1Q19 Update FY19 Outlook Appendices Glossary For personal use only FY18 Full Year ended 31 March 2018 MW Mega Watt FY19 Full Year ending 31 March 2019 MWp Mega Watt peak GIG Green Investment Gr
Slide 51: Macquarie Group Limited 2018 Annual General Meeting
For personal use only Macquarie Group Limited 2018 Annual General Meeting 26 July 2018 © MACQUARIE 2018