Macquarie Group, Ltd. · ASX:MQG
Macquarie — UBS Australian Financial Services Conference 2010
32 slides from Macquarie's conference presentation, Jun 24, 2010
Slide 1: ASX/Media Release
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 For personal use only 24 June 2010 ASX/Media Release Please find attached a presentation to b
Slide 2: UBS Australian Financial Services Conference 2010
For personal use only Macquarie Group Limited UBS Australian Financial Services Conference 2010 Sydney, 24 June 2010 Greg Ward, Chief Financial Officer
Slide 3: Disclaimer
Disclaimer For personal use only Disclaimer The material in this presentation has been prepared by Macquarie Group Limited ABN 94 122 169 279 (“Macquarie”) and is general background information about Macquarie’s activities current as at the date of this presentation. This information is given in sum
Slide 4: Agenda
Agenda For personal use only 1. About Macquarie 2. Overview of FY10 result 3. Recent initiatives from FY10 results 4. Outlook update Unless otherwise specified all information is for the full year ended 31 Mar 10 and movements are on the prior year 3
Slide 5: About Macquarie
For personal use only About Macquarie Macquarie Group Limited UBS Australian Financial Services Conference 2010 24 June 2010
Slide 6: About Macquarie
About Macquarie For personal use only 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 bank
Slide 7: Macquarie model – focus over the medium term
Macquarie model – focus over the medium term For personal use only Client driven business ⎯ Main business focus is providing products and services to clients ⎯ Trading businesses focussed on client transactions ⎯ Minimal proprietary trading Alignment of interests with shareholders, investors, st
Slide 8: Overview of FY10 Result
For personal use only Overview of FY10 Result Macquarie Group Limited UBS Australian Financial Services Conference 2010 24 June 2010
Slide 9: Result reflects improved market conditions
Result reflects improved market conditions For personal use only Profit of $A1,050m, up 21% on FY09 and 2H10 up 19% on 1H10 All operating businesses delivered improved results in FY10 compared to FY09 Operating income before writedowns, impairments, equity accounted gains/(losses) and one-off
Slide 10: Result reflects improved market conditions
Result reflects improved market conditions For personal use only Mar 10 Mar 09 $Am $Am Net operating income 6,638 5,526 Total operating expenses (5,344) (4,537) Operating profit before income tax 1,294 989 Tax expense (201) (15) Operating profit after income tax 1,093 974 Profit attributable to mino
Slide 11: Writedowns, impairments, equity accounted gains/(losses) and one-off items
Writedowns, impairments, equity accounted gains/(losses) and For personal use only one-off items 2H10 1H10 FY09 $Am $Am $Am Gains from listed fund initiatives1 (MCG, MLE, MAp, MMG, MIG, 125 414 - A-REITs) Liability management ⎯ MIPS - 127 197 ⎯ Subordinated debt - 55 - Net fair value adjustment on f
Slide 12: Financial performance
Financial performance For personal use only $Am FY10 operating income of $A6,638m $Am FY10 profit of $A1,050m 4,000 20% increase on FY09 800 21% increase on FY09 2,000 400 0 0 2H08 1H09 2H09 1H10 2H10 2H08 1H09 2H09 1H10 2H10 $A $A FY10 DPS of $A1.86 FY10 EPS of $A3.20 3.00 3% increase on FY09 2.00
Slide 13: Operating income by region
Operating income by region For personal use only 1,800 1,600 1,400 1,200 Operating income $Am1 2H08 1H09 2H09 1,000 1H10 2H10 800 600 400 200 0 Australia Asia Americas Europe, Middle East & Africa 1. Operating income excludes earnings on capital and other corporate items. 12
Slide 14: Diversified by region
Diversified by region International income1 52% of total For personal use only Total staff over 14,6002; international staff 50% of total EUROPE, MIDDLE EAST ASIA AMERICAS & AFRICA3 Income: $A863m (13% of total) Income: $A1,139m (18% of total) Income: $A1,349m (21% of total) Staff: 1,473 Staff: 2,41
Slide 15: Macquarie well positioned as Asia Pacific's leading provider of broking and advisory services
Macquarie well positioned as Asia Pacific’s leading provider of broking and advisory services For personal use only Asia 10 year operating income CAGR of 36% Our research coverage of over 1,200 Asia-Pacific stocks is A leading issuer of equity derivative products in the HK one of the largest in
Slide 16: Diversified income
Diversified income For personal use only Operating income by source Operating income before writedowns, impairments, equity accounted gains/(losses) and one-off items 12 months to 31 Mar 09 12 months to 31 Mar 10 $A7.2b $A7.0b Institutional and retail cash equities 9% 15% 17% 18% Equity derivatives
Slide 17: Evolution over the last three years
Evolution over the last three years For personal use only Operating income before writedowns, impairments, equity accounted gains/(losses) and one-off items 12 months to 31 Mar 07 12 months to 31 Mar 10 $A7.0b $A7.0b Institutional and retail cash equities 10% 15% 17% 15% 18% Equity derivatives 8% 22
Slide 18: Assets under management of $A326b
Assets under management of $A326b For personal use only Significant increase in AUM due to Delaware acquisition in Jan 10 ⎯ Excluding Delaware1, reported AUM decreased by $A68b mainly due to the listed fund initiatives and strengthening of the $A since Mar 09 Pro-forma AUM includes impact of CMT
Slide 19: Strong funding and balance sheet position
Strong funding and balance sheet position For personal use only Retail deposits increased from $A13.4b at Mar 09 to $A15.5b at Mar 10 ⎯ On 22 Apr 10 CMT unit holders approved the transfer of funds to CMA, effective 31 Jul 10 (CMT volume at 31 Mar 10 was $A9.5b1) Removal of Government guarantee w
Slide 20: Funded balance sheet remains strong
Funded balance sheet remains strong For personal use only Macquarie Group Limited $Ab 30 September 2009 $Ab 31 March 2010 $Ab 31 March 2010 Pro-forma1 90 90 90 Impact of CMT/CMA initiative ST wholesale issued paper (6%) 6.5x 80 80 80 excess Other debt2 maturing in the next 12 mths (8%) ST wholesale
Slide 21: Consistently strong capital base
Consistently strong capital base For personal use only Well capitalised – surplus over Group’s minimum regulatory capital requirement of $A4.0b Core equity represents 91% of the Group’s capital base $Ab 12 $A11.8b CPS $A10.2b MIS $A9.3b 10 MIPS Core equity 8 $A7.2b 6 $A4.8b 4 2 0 2006 2007 2008
Slide 22: Group capital surplus of $A4.0b
Group capital surplus of $A4.0b For personal use only Group capital of $A11.8b at 31 Mar 10, a $A4.0b buffer of capital in excess of the Group’s minimum regulatory capital requirements Strong Banking Group capital ratios - Tier 1: 11.5%; Total Capital: 13.3% $Ab 6.0 Option exercises, MEREP 5.0 0
Slide 23: Equity investments of $A5.6b
Equity investments of $A5.6b For personal use only Carrying value Carrying value Mar-10 Mar-09 Category1 $Am $Am Description Debt investment entities 225 284 Largely relates to holding in Diversified CMBS Investments Inc. Underlying investments are commercial mortgage-backed securities that are high
Slide 24: Loan asset portfolio quality
Loan asset portfolio quality For personal use only Net Net carrying Provisions carrying Provisions value coverage value coverage Mar 10 Mar 10 Mar 09 Mar 09 Loan category $Ab %1 $Ab %1 Mortgages Secured by residential mortgages and supported by mortgage insurance Aust: arrears2 = 1.0%, most loans
Slide 25: Recent Initiatives from FY10 results
For personal use only Recent Initiatives from FY10 results Macquarie Group Limited UBS Australian Financial Services Conference 2010 24 June 2010
Slide 26: Recent initiatives from FY10 results
Recent initiatives from FY10 results For personal use only Macquarie Securities Macquarie Capital A global specialist offering unique insights into energy, resources, commodities, Integrated global M&A, DCM, ECM and principal investing platform infrastructure, real estate, quant and FIG sectors
Slide 27: Recent initiatives from FY10 results
Recent initiatives from FY10 results For personal use only Fixed Income, Currencies & Commodities Macquarie Funds Group Specialist in global commodity markets offering tailored price risk management Strong, established fund management franchise, particularly in Australia solutions to significant
Slide 28: Recent initiatives from FY10 results
Recent initiatives from FY10 results For personal use only Corporate and Asset Finance Banking and Financial Services Strong technical expertise to provide finance and asset management solutions Premium advice, service and products to Australian retail investors to over 200,000 clients through A
Slide 29: Outlook update
For personal use only Outlook update Macquarie Group Limited UBS Australian Financial Services Conference 2010 24 June 2010
Slide 30: Outlook update
Outlook update For personal use only Market conditions increasingly uncertain making short-term forecasting difficult These market conditions are adversely impacting some business activity levels Too early to evaluate implications for full year FY11 results 29
Slide 31: Medium-term outlook
Medium-term outlook For personal use only Over the medium-term we continue to be well placed due to: ⎯ Global depth and reach of our businesses ⎯ Diversification of business mix ⎯ Strong committed team with interests aligned to shareholders ⎯ Strong balance sheet, capital and funding ⎯ Effective r
Slide 32: UBS Australian Financial Services Conference 2010
For personal use only Macquarie Group Limited UBS Australian Financial Services Conference 2010 Sydney, 24 June 2010 Greg Ward, Chief Financial Officer
Macquarie Group — UBS Australian Financial Services Conference 2010 on 6ix