Macquarie Group, Ltd. · ASX:MQG
Macquarie — Investor Presentation (February 2016)
100 slides from Macquarie's investor presentation, Feb 4, 2016
Slide 1: Operational Briefing
For personal use only Operational Briefing Presentation to Investors and Analysts 4 February 2016
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 (“Macquarie”, “the Group”) and is general background information about Macquarie’s activities current as at the date of this presentation. This information is given in s
Slide 3: Agenda
Agenda For personal use only 10.05 – 10.10 Introduction – Karen Khadi 10.10 – 10.30 Update since the interim result – Nicholas Moore 10.30 – 11.00 Macquarie Asset Management – Shemara Wikramanayake, Martin Stanley, Ben Bruck 11.00 – 11.40 Corporate Asset and Finance – Garry Farrell, Ben Brazil, Jon
Slide 4: Introduction
For personal use only 01 Introduction Karen Khadi – Head of Investor Relations
Slide 5: Update since the interim result
For personal use only 02 Update since the interim result Nicholas Moore – Managing Director and Chief Executive Officer
Slide 6: About Macquarie: Building for the long term
About Macquarie For personal use only Building for the long term Macquarie Asset • Top 50 global asset manager with $A487.2b1 of assets under management Management • Provides clients with access to a diverse range of capabilities and products, including infrastructure and real asset management, secu
Slide 7: 3Q16 Overview
3Q16 Overview For personal use only • Satisfactory trading conditions in 3Q16 across the Group • Macquarie’s annuity-style businesses’ (Macquarie Asset Management, Corporate and Asset Finance and Banking and Financial Services) combined 3Q16 net profit contribution1 up on pcp (3Q15) but down on prio
Slide 8: 3Q16 Overview: Annuity-style businesses
3Q16 Overview For personal use only Annuity-style businesses Operating Group Market positions Developments since 1H16 Macquarie Asset • Top 50 global asset manager, Australia’s largest global asset manager • AUM $A487.2b at Dec 15 down 3% on Sep 15 predominately driven by unfavourable spot exchange
Slide 9: 3Q16 Overview: Capital markets facing businesses
3Q16 Overview For personal use only Capital markets facing businesses Operating Group Market positions Developments since 1H16 Macquarie Securities • Maintained equal 1st overall in the 2015 Peter Lee Survey of • Market activity across Asia-Pacific was subdued during 3Q16 as macroeconomic concerns f
Slide 10: 13,791 staff in over countries
13,791 staff in over 28 countries1 For personal use only Europe, Middle East & Africa Asia Americas Staff: 1,376 Staff: 3,530 Staff: 2,517 Asia Europe Bangkok Manila Canada Amsterdam Beijing Mumbai USA Calgary Dublin Gurgaon Seoul Austin Nashville Montreal Frankfurt Hong Kong Shanghai Boston New Yor
Slide 11: Funded balance sheet remains strong
2 Funded balance sheet remains strong For personal use only • Increase in funded assets during the quarter largely due to the continued transitioning of AWAS and Esanda portfolios $Ab 31 March 2015 $Ab 30 September 2015 $Ab 31 December 2015 140 140 140 4 130 130 130 ST wholesale issued paper (11%) 1
Slide 12: Strong regulatory ratios
Strong regulatory ratios For personal use only Macquarie Bank Group (Dec 15) Harmonised ratios 6.1% 14.0% 6.0% 200.0% 11.5% 170% 5.0% 10.5% 150.0% 4.0% 7.0% 3.0% 100.0% 2.0% 3.5% 50.0% 1.0% - - - CET1 ratio Leverage ratio LCR3 1 BCBS Basel III minimum Macquarie Bank Group (Harmonised) 2 1. Includes
Slide 13: Regulatory update
Regulatory update For personal use only • Conglomerates – In Aug 14, APRA issued its final rules for Conglomerates with implementation timing yet to be announced. We continue to work through the application of the rules with APRA and our current assessment remains that Macquarie has sufficient capit
Slide 14: Basel III capital position
Basel III capital position For personal use only • APRA Basel III Group capital at Dec 15 of $A17.3b, Group surplus of $A2.8b1 • Bank Group APRA Basel III CET1 ratio: 9.9%; Tier 1 ratio: 11.0%; Leverage ratio: 5.2% • Bank Group Harmonised Basel III CET1 ratio: 11.5%; Tier 1 ratio: 12.6%; Leverage ra
Slide 15: Short term outlook
Short term outlook For personal use only • Summarised below are the outlook statements for each Operating Group • FY16 results will vary with market conditions, particularly the capital markets facing businesses Net profit contribution FY16 outlook as FY08–FY15 FY08–FY15 Update to FY16 outlook FY15
Slide 16: Short term outlook
Short term outlook For personal use only • While the impact of future market conditions makes forecasting difficult, Macquarie currently expects the FY16 combined net profit contribution1 from operating groups to be up on FY15 • The FY16 tax rate is currently expected to be broadly in line with 1H16
Slide 17: Medium term
Medium term For personal use only • Macquarie remains well positioned to deliver superior performance in the medium term • Deep expertise in major markets • Build on our strength in diversity and continue to adapt our portfolio mix to changing market conditions – Annuity-style income is provided by
Slide 18: Approximate business Basel III Capital & ROE
Approximate business Basel III Capital & ROE For personal use only 30 September 2015 1 APRA Basel III Capital Approx. 1H16 Return Approx. 9-Year Average 2 Operating Group @ 8.5% ($Ab) on Ordinary Equity2 Return on Ordinary Equity Annuity-style businesses 7.7 Macquarie Asset Management 1.6 Corporate
Slide 19: Medium term
Medium term For personal use only • Annuity-style business that is diversified across regions, products, asset classes and investor types • Diversification of capabilities allows for the business to be well placed to grow assets under management in different MAM market conditions • Well positioned f
Slide 20: Macquarie Asset Management
For personal use only 03 Macquarie Asset Management Shemara Wikramanayake, Group Head Martin Stanley and Ben Bruck, Division Heads
Slide 21: Overview of Macquarie Asset Management
Overview of Macquarie Asset Management For personal use only Macquarie Asset Management $A487b AUM Australia’s largest global asset manager Broad range of capabilities and products Macquarie Infrastructure Macquarie Investment Macquarie Specialised and Real Assets Management Investment Solutions A l
Slide 22: Highly diversified AUM and base fee revenue gives resilience
Highly diversified AUM and base fee revenue gives resilience For personal use only AUM Base fee composition 1% 1% 21% 28% 31% 39% 3% 8% 21% 47% MIM Equities MIM Fixed Income MIM Alternatives & Multi-Asset MIRA MSIS AUM as at 31 Dec 15. Base fee composition for 1H16. MIRA typically earns base fee rev
Slide 23: Wide geographic spread and key hubs where our clients are located
Wide geographic spread and key hubs where our clients are located For personal use only 1,400+ staff • 19 countries • 20+ years of experience1 A London ASIA New York 9% of total income Philadelphia 9% of AUM Hong Kong EMEA 29% of total income 13% of staff AMERICAS 19% of AUM 11% of Industry AUM 48%
Slide 24: Macquarie's core principles are at the heart of our approach
Macquarie’s core principles are at the heart of our approach For personal use only High quality, experienced team (Average tenure of MAM Executive Directors is 15 years and senior management team is 22 years) Opportunity + Accountability + Integrity 60+ teams identifying Distributed responsibility f
Slide 25: Track record of disciplined, adjacent growth
Track record of disciplined, adjacent growth For personal use only Agriculture (‘12) Energy (‘03) MIRA Real Estate1 (‘02) Infrastructure (’94) Delaware Investments (‘10) Asian Equities (’08) MIM Hedge Funds (‘05) Australian Fixed Income & Cash (‘80) and Australian Equities (‘87) Infrastructure Debt
Slide 26: Examples of MSIS organic growth
Examples of MSIS organic growth For personal use only Fund Linked Products (FLP) Macquarie Infrastructure Debt Investment Solutions (MIDIS) FLP revenues by financial year MIDIS commitments $Am $Am 60 4,000 3,500 50 3,000 40 2,500 30 2,000 1,500 20 1,000 10 500 - - Mar FY1010 Mar FY1111 Mar 12 FY12 M
Slide 27: Strong, organic growth since formation across MAM
Strong, organic growth since formation across MAM For personal use only $Am $Ab 2,500 600 Indices CAGR1 Operating income CAGR = 16% 500 S&P 500 12% 2,000 (Base fee CAGR = 12%) ASX 200 4% 1,450 400 Hang Seng 3% 1,500 Net profit 300 1,000 480 contribution2 CAGR= 32% 200 500 Operating expenses CAGR = 3
Slide 28: Diversification in sources of performance fees
Diversification in sources of performance fees For personal use only MAM performance fees by source since FY11 MAM performance fees by $Am region since FY11 800 18 700 17 17 667 16 16 609 14 ANZ 600 9% 13 12 500 12 Americas 11 10 39% 400 8 EMEA 300 218 6 36% 200 164 125 4 Asia 100 2 30 16% - 0 FY11
Slide 29: Capability set is well positioned to continue to meet investor needs
Capability set is well positioned to continue to meet investor needs For personal use only Active management will continue to be core Active management and alternatives will Real Assets to be strongest area despite faster AUM growth in passive remain the largest contributors to of growth in alternat
Slide 30: Common drivers across the MAM divisions
Common drivers across the MAM divisions For personal use only Superior investment Platform efficiency performance Customer Developing relationships relevant products PAGE 30
Slide 31: Macquarie Infrastructure and Real Assets
Macquarie Infrastructure and Real Assets For personal use only 21 Year track record No.1 Infrastructure manager globally1 $A68b Equity Under Management2 $Ab 80 Leading global real 70 88% asset manager focused 60 50 on creating long-term EUM 40 value for our clients 30 through alternative 20 investme
Slide 32: What we are known for
What we are known for For personal use only Having a long history of achieving lasting outcomes, through relevant and thoughtful solutions Culture, scale • Global scale, local knowledge, networks: ~480 staff in 17 countries and reach • Industry depth and experience: ~14 year average tenure for Execu
Slide 33: Our business model
Our business model For personal use only Raise capital Infrastructure Invest capital Real Estate Investors Manage performance Agriculture Develop solutions Energy PAGE 33
Slide 34: How we derive our net income
How we derive our net income use only A simple formula which aims to deliver superior returns for our clients Base fees – Expenses + Performance + Net investment fees returns Basispersonal • Capital raised • Operating costs • Investment performance Drivers • Asset outperformance (headcount) • Number
Slide 35: Our income includes more than base fees
Our income includes more than base fees For personal use only $Am MIRAperformance MIRA base fees (LHS) fees and other income $Am (LHS) MIRAfees Average base (RHS)1 fees and other income (LHS) performance % of EUM 1 2 2 1,400 Average MIRA basebase feesfees $Am(RHS) (LHS) Average performance Average p
Slide 36: Raising capital through the cycle
Raising capital through the cycle For personal use only ~$A30b of new capital accumulated in last five years1 ~50% of capital managed today was raised since FY10 Capital Raised2 ($Ab) Delivered through: • Follow-on infrastructure funds 8.3 7.2 • Asia expansion, including $A3.9b for $A4.8b average pa
Slide 37: Investing capital across industries and regions
Investing capital across industries and regions For personal use only $A22b deployed across ~80 assets during the last five years1 Canada UK France Spain Germany Czech Republic South Korea Autoroute 25 Pisto SAS Asset Energia Solar Ceske Radiokomunikace Fraser Surrey Docks Airwave
Slide 38: Evolution of managed capital
Evolution of managed capital For personal use only Listed / Unlisted1 Region2 Sector3 6% 10% 8% Mar 07 $A60b 13% 18% 48% 32% 53% 6% 58% 26% 15% 7% 10% 6% 3% 18% 23% 22% 9% Dec 15 29% $A68b 3% 34% 23% 59% 31% 30% Listed Unlisted Co-investment and SMA ANZ EMEA North America Transport Power & Energy Wa
Slide 39: Managing performance: consistent track record over the long-term
Managing performance: consistent track record over the long-term For personal use only 1.9x Multiple $A26.6b 50 Infrastructure realisations1 18% realised asset IRR1 $A14.3b Buying well, managing well, selling well • Acquisition: market and industry insight supports proprietary deal flow and acquisit
Slide 40: Case Study: MEIF UK Renewables
Case Study: MEIF UK Renewables For personal use only A portfolio of UK renewable energy generation assets diversified across technologies Acquired 2005-2007 Cost £125m IRR 18%1 Divested 2015 Proceeds £377m Multiple 3.0x Key Initiatives: • Acquired underperforming platform and rolled up other assets
Slide 41: The platform is well positioned for continued growth
The platform is well positioned for continued growth For personal use only In-house expertise in place to grow into adjacencies, and expand existing sectors • Global platform, deep regional and sectoral expertise Infrastructure • Operational leverage for new products and successor funds • New ideas
Slide 42: MIM is a global active asset manager
MIM is a global active asset manager For personal use only The growth of our multi-boutique platform is driven by investment performance, innovation and disciplined acquisition • Over 70 investment professionals based in Philadelphia, Sydney, New York, Boston, Hong Kong and Seoul • Investment capabi
Slide 43: Historical net flows stronger than active manager peers
Historical net flows stronger than active manager peers For personal use only AUM growth (Mar 11 – Dec 15) $Ab • Investment performance, adjacencies 350 and global distribution footprint are key drivers of net flows 300 84 • MIM net flows of 1.9% consistent with industry net flows of 1.9% for calend
Slide 44: Consistent base fee growth and diversification
Consistent base fee growth and diversification For personal use only Base Fees (FY11 – 1H16) $Am 900 826 800 749 • Consistent growth in base fee revenue 700 600 591 • Slight increase in base fee margins 529 502 over the period due to a shift toward 500 472 higher-margin strategies 400 • Adjacencies
Slide 45: A globalising client base, driven by performance and product expansion
A globalising client base, driven by performance and product expansion For personal use only Operating income by Five-year revenue Investment outperformance region1 ($Am) growth potential vs. benchmark2 (% of MIM strategies to 31 Dec 15) Adjacencies and new strategies Future revenue from 100% = 661
Slide 46: Strategic focus
Strategic focus For personal use only MIM is positioned to develop into a top-tier global active manager through four key strategies Investment Adjacency Global Disciplined excellence innovation operating model acquirer Ongoing focus on Apply investment Create a single global Add new investment perf
Slide 47: Corporate Asset and Finance
For personal use only 04 Corporate Asset and Finance Garry Farrell and Ben Brazil, Group Co-Heads Jon Moodie and Stephen Cook, Division Heads
Slide 48: Overview of Corporate and Asset Finance
Overview of Corporate and Asset Finance For personal use only •Corporate and Asset Finance • Global provider of specialist finance and asset management solutions, with $A39.7b 1 of loans and leases • Global capability in corporate and real estate credit investing and lending • Expertise in asset fin
Slide 49: Corporate and Asset Finance
Corporate and Asset Finance For personal use only Asset Finance CORPORATE AND ASSET FINANCE Lending Asset and loan portfolio ($Ab) Net profit contribution¹ ($Am) Loan portfolio2 ($Ab) 1H16 net profit contribution growth of 31% on pcp 29.6 11.2 AWAS ESANDA 10.1 1,112 9.0 8.0 7.9 826 17.5 698 694 16.5
Slide 50: Corporate Asset Finance
For personal use only 04 Corporate Asset Finance Garry Farrell, Group Co-Head Jon Moodie and Stephen Cook, Division Heads
Slide 51: CAF Asset Finance
CAF Asset Finance For personal use only A global provider of tailored finance and asset management solutions to clients across specialised assets through the cycles $A29.6b1 loans and assets under finance Motor Asset finance expertise: aviation, rail, vehicles Aircraft Technology Energy motor vehicl
Slide 52: Global presence in specialised assets
Global presence in specialised assets For personal use only ~900 staff • 17 countries • 20+ years of experience A London New York ANZ/ASIA EMEA of 78% ofstaff of total 14% staff 22%income AMERICAS 74% of total income 8% ofstaff of total Sydney 4% income Total income reflects net operating income exc
Slide 53: Experience and technical skills underpin performance and growth
Experience and technical skills underpin performance and growth For personal use only Average tenure of CAF Specialist expertise across CAF Asset Finance senior 25 leaders is Asset Finance Years 21 20 13 years Long Macquarie tenure of leadership group 15 Expertise built up in key asset classes and j
Slide 54: Strategic focus
Strategic focus For personal use only Significant Stable Attractive Appropriate markets earnings assets return on capital Deep markets present Contract terms provide Specialised assets Relatively low niche opportunities for growth significant locked-in income where significant industry cost-to-incom
Slide 55: Strategic focus: Business evolution
Strategic focus Business evolution For personal use only Dec 15 Motor vehicles Aircraft Rail Energy Tech Resources $A29.6b OEM1 Portfolio (2012) Portfolio growth Distribution Finance Tech Flow UK (2013) Smart meters Sale of Tech US Euro Rail (2015) (2013) Sale of US Rail AWAS (2015) (2015) Rotorcraf
Slide 56: Strategic focus: Other businesses
Strategic focus Other businesses For personal use only Energy Leasing Technology Resources Commitments of over Ongoing opportunities Continue to develop $A1b for the roll out of in mobile telephony opportunities in adverse smart meters in the UK market conditions Funding renewable energy assets Port
Slide 57: Strategic focus: External funding
Strategic focus External funding For personal use only SMART securitisation program Broad use of external funding Continued access to securitisation market through the cycle 100% No.1 Australian auto and equipment ABS issuer 90% Total of $A22b raised in 29 deals since 2007 80% $Ab 4.0 SMART program
Slide 58: Strategic focus: Consistently high-quality portfolio
Strategic focus Consistently high-quality portfolio For personal use only Strong credit discipline Strong asset discipline Low levels of credit losses High levels of asset utilisation Experienced executives and strong underwriting processes High utilisation rates across asset classes Strict an
Slide 59: Key risks
Key risks For personal use only Rigorous risk management framework and strong risk culture Credit Asset Operational Compliance Interest rates Risk Risk Risk Risk Risk Non performance by consumer Remarketing of ex-lease or Loss or damage to assets Breach of regulations, or fraud Mismatch between floa
Slide 60: Transportation
Transportation For personal use only Specialist financier of commercial aircraft, rail assets and rotorcraft Business and strategy Market Leading lessor of commercial aircraft worldwide with Aircraft yields remain satisfactory, 217 aircraft on lease to 94 airlines in 50 countries1 with strong un
Slide 61: Transportation: Business evolution over years
Transportation For personal use only Business evolution over 25 years Acq. AWAS portfolio Established Rotorcraft Acquired European Rail business Acquired 51 aircraft from ILFC and stepped up to 100% of MAF Established Macquarie AirFinance (MAF) US Rail leasing business. Sold in 2015 First principal
Slide 62: Transportation: AWAS portfolio acquisition
Transportation For personal use only AWAS portfolio acquisition In Mar 15, Macquarie signed an agreement to purchase up to 90 1 aircraft from AWAS for $US4b High quality portfolio of predominately young, narrowbody aircraft with long contracted leases attached providing significant annuity income wh
Slide 63: Motor Vehicles
Motor Vehicles For personal use only Leading provider of auto finance in Australia Business and strategy Market A leading provider of auto finance in Australia Competitive market with domestic Direct and indirect origination of auto leases/loans for banks, manufacturers’ captives and SMEs and
Slide 64: Motor Vehicles: Business evolution over 20+ years
Motor Vehicles For personal use only Business evolution over 20+ years Acq. Esanda portfolio Acq. Advantage Funding Commenced business in the UK Commenced floorplan financing Commenced white label programs Acquired GMAC portfolio Acquired Ford Credit portfolio Commenced motor vehicle finance in Aust
Slide 65: Motor Vehicles: Esanda portfolio acquisition
Motor Vehicles For personal use only Esanda portfolio acquisition Step-change in dealer and retail auto finance segments Portfolio metrics (as at 31 Dec 15)¹ Esanda portfolio Combined Customers 310,600 625,000 In Oct 15, Macquarie announced the acquisition of the Esanda Retail portfolio ($Ab) 6.6
Slide 66: CAF Lending
For personal use only 04 CAF Lending Ben Brazil, Group Co-Head
Slide 67: Business description
Business description For personal use only • Deployment of capital and funding, primarily into the credit space • For ‘direct’ return for risk purposes with a hold to Direct loan Primary maturity horizon • Flexible/diverse in relation to: ‒ Origination source – primary/secondary, CAF Lending Borrowe
Slide 68: Business positioning – geography
Business positioning – geography For personal use only Portfolio size $A10.1b1 A EMEA DEC 15 AMERICAS 38 staff A 44 staff 3.0 2.3 1.9 1.6 1.0 A AUSTRALIA Corporate Real Corporate 0.3 Real 32 staff Corporate Real estate estate estate 1. Funded loan portfolio shown which excludes current committed but
Slide 69: Evolution of business
Evolution of business For personal use only $Am L+2500 14,000 Capability at inception focused on primary and secondary loans 12,000 L+2000 10,000 “Unitranche” Residential primary mortgages Credit spreads L+1500 Book Size 8,000 Expansion of Defaulted US / Europe debt (as at Infrastructure 6,000 L+100
Slide 70: Portfolio composition since inception
Portfolio composition since inception For personal use only Origination Channel Sector Facility type Defaulted (as at Retail/Mortgages1 Equity acquisition) Mortgages Junior Real Estate Senior Unsecured Primary Secondary Corporate Senior Secured 1. Includes residential mortgages and student loans. Co
Slide 71: Primary senior
Primary senior For personal use only Example Borrowers Current Portfolio $A4.5b Education Airport Services Hotels Average Realised realised $A9.1b spread of 6.5% Software Healthcare Cable Infrastructure Deployed Since Inception Healthcare Chemicals Manufacturing Rental Cars Current portfolio shows c
Slide 72: Secondary senior
Secondary senior For personal use only Current Portfolio Example Borrowers $A3.8b Industrial Cold Storage Utilities Motorway Services Realised Average $A12.7b realised spread of 8.6% Transport Infrastructure Motorway Services Motorway Services Deployed Since Inception Waste Management Current portfo
Slide 73: Junior
Junior For personal use only Example Borrowers Current Portfolio $A1.2b Motorway Services Infrastructure Bulk Liquids Terminal Realised Average $A0.7b realised spread of 11.4% Multifamily Housing Marine Chassis Leasing General Aviation FBO Deployed Since Inception Current portfolio shows currently f
Slide 74: Equity / Equity-like
Equity / Equity-like1 For personal use only 1. Includes debt which was in default at acquisition Infrastructure Sector Date Region Invested ($Am)2 Realised Dec 12, Sep 14 Australia 251 24% average realised Mar 14 US 168 spread3 Aug 13, Jun 15 Europe 33 Jun 14 – Jun 15 Europe 15 Current Portfolio Unr
Slide 75: Case Studies
Case Studies For personal use only Energetics UK Tank & Rast Germany • Between 2013 and 2015, CAF Lending provided • In Jun 09 and Mar 11, CAF Lending acquired €143m of financing to, and ultimately acquired a controlling senior loans in Tank & Rast, the landlord of c. 90% of interest in Energetics,
Slide 76: Risk management and risk culture
Risk management and risk culture For personal use only • Risk, fully compensated by return, is our only business • Conducted within the disciplines of a risk management framework and according to the limits of risk acceptance − Risk is “owned” and managed by the business, independent review by RMG C
Slide 77: Risk management and risk culture
Risk management and risk culture For personal use only Alignment and culture are the foundations of our Risk performance has been very sound risk management strategy Profits and impairments since inception Alignment Culture ‘In place’ portfolio has Senior team members inherent profits average 8 year
Slide 78: Europe, Middle East and Africa
For personal use only 05 Europe, Middle East and Africa David Fass, Regional Head
Slide 79: Market conditions: European environment
Market conditions For personal use only European environment Falling unemployment Inflation is low “ EU unemployment rate has now fallen to 9.3% - the lowest level for more than six years1. ” The Spanish economy created 525,000 new jobs in 2015, bringing it’s unemployment rate to 20.9% – still high,
Slide 80: Market conditions: UK environment
Market conditions For personal use only UK environment Growth is expected to continue The UK recovery Forecasters expect Inflation is low is not far behind the US modest growth Source: IMF, OECD, Consensus. PAGE 80
Slide 81: Macquarie in EMEA: Overview
Macquarie in EMEA For personal use only Overview Collaborative business that draws on expertise in infrastructure, natural resources and Asia-Pacific insight ~1,370 staff • 11 countries • 16 locations CAF, CFM, MacCap, MAM, MSG all present in EMEA Pursuing an increase in Macquarie 1H16 brand recogni
Slide 82: Macquarie in EMEA: Operating groups
Macquarie in EMEA For personal use only Operating groups MAM Infrastructure and $A3.7b of third party real asset management, MIRA manages 30 investor commitments on Macquarie Investment infrastructure assets across Investment Macquarie Specialised Management (MIM) AUM of 13 European countries with $
Slide 83: Macquarie in EMEA: Operating groups
Macquarie in EMEA For personal use only Operating groups MSG Institutional securities house Dedicated international covering research, sales and trading desks 250+ European stocks execution and equity under coverage 500+ dealing clients servicing EMEA clients capital markets trading Asia-Pacific Mac
Slide 84: Macquarie in EMEA: Evolution through adjacent growth
Macquarie in EMEA For personal use only Evolution through adjacent growth EU Infrastructure (‘99) MAM Africa Infrastructure (‘00) Middle East Infrastructure (‘08) Russia Infrastructure (‘09) Diversified AM (‘11) Infrastructure Debt (‘12) Asset Finance – Energy (‘03) CAF Aviation (’06) Corporate lend
Slide 85: Macquarie in EMEA: Performance
Macquarie in EMEA For personal use only Performance The EMEA market has improved Diversity in the EMEA earnings stream – generating 24% of Group’s operating income1 1. Represents net operating income excluding earnings on capital and other corporate items for EMEA for 1H16. PAGE 85
Slide 86: Macquarie in EMEA: People
Macquarie in EMEA For personal use only People Experience underpins performance and growth Mix of staff has changed Externally recognised UK employer Hiring talent from outside our sector PAGE 86
Slide 87: Macquarie in EMEA: Regulatory focus on conduct and governance
Macquarie in EMEA For personal use only Regulatory focus on conduct and governance Increased regulatory focus on conduct ... combined with continued and changing governance requirements market reform EMIR MAD II Senior Managers and Certification Regime European Market Market Abuse Directive • Drives
Slide 88: Macquarie in EMEA: Market recognition
Macquarie in EMEA For personal use only Market recognition Continued recognition from the market PROJECT FINANCE PROJECT INFRASTRUCTURE FINANCE LEAGUE TABLES INTERNATIONAL PAGE 88
Slide 89: Macquarie in EMEA: Well positioned over the medium term
Macquarie in EMEA For personal use only Well positioned over the medium term Specialist One firm Unlocking Asian Brand expertise approach capital and recognition connections Utilise local, specialist Team aligned across Facilitate capital flows Increasing brand expertise to capitalise operating grou
Slide 90: Specialist expertise – Renewable Energy
Macquarie in EMEA Specialist expertise – Renewable Energy For personal use only Shaping new infrastructure asset classes with sector expertise and leadership in capital structure and sourcing Offshore Transmission Owner (OFTO) Baltic 2 Offshore Wind Offshore Transmission Macquarie Owner (OFTO) part
Slide 91: One firm approach – Mersey Gateway Bridge
Macquarie in EMEA One firm approach – Mersey Gateway Bridge For personal use only The Mersey Gateway Bridge was recognised as a top 100 global infrastructure project by KPMG1 and European Infrastructure Deal of the Year2 Leveraged global networks Innovative greenfield financing solution Borough
Slide 92: Unlocking Asian capital and connections
Macquarie in EMEA For personal use only Unlocking Asian capital and connections PAGE 92
Slide 93: Brand recognition - focus on key clients
Macquarie in EMEA For personal use only Brand recognition - focus on key clients Financial adviser and sole Demerger and IPO bookrunner on the first SPAC IPO for LSE listing Secured Debt Facility listing on the JSE Main Board One firm client focus for LSE listing and Equity Funding £396m ZAR 1b £725
Slide 94: Well positioned for the future
Macquarie in EMEA For personal use only Well positioned for the future Scale Focus Geography Connectivity PAGE 94
Slide 95: Glossary
For personal use only A Glossary
Slide 96: Glossary
Glossary For personal use only $A / AUD Australian Dollar APRA Australian Prudential Regulation Authority $US / USD United States Dollar APTT Asian Pay Television Trust £ British Pound ASX Australian Stock Exchange € Euro AUM Assets Under Management 1H16 Half-Year ended 30 September 2015 Ave Average
Slide 97: Glossary
Glossary For personal use only CPI Consumer Price Index FUM Funds Under Management CY15 Calendar Year ending 31 December 2015 FX Foreign Exchange DCM Debt Capital Markets FY07 Full Year ended 31 March 2007 DD Divisional Director FY08 Full Year ended 31 March 2008 DKK Danish Krone FY09 Full Year ende
Slide 98: Glossary
Glossary For personal use only IT Information Technology MIC Macquarie Infrastructure Corporation kt kilotonne MIDIS Macquarie Infrastructure Debt Investment Solutions L+ USD 3 month LIBOR plus MIFID II Markets in Financial Instruments Directive II LCR Liquidity Coverage Ratio MIIF Macquarie Interna
Slide 99: Glossary
Glossary For personal use only P&L Profit and Loss Statement YoY Year on Year p.a. Per annum yr Year PCP Prior Corresponding Period YTD Year To Date, for the period ending 31 Dec 15 PPE Property, Plant and Equipment ZAR South African Rand QoQ Quarter on Quarter REIT Real Estate Investment Trust REMI
Slide 100: Operational Briefing
For personal use only Operational Briefing Presentation to Investors and Analysts 4 February 2016
Macquarie Group — Investor Presentation (February 2016) on 6ix