Slide 1: Operational Briefing
2022 Operational Briefing Macquarie Group Limited 8 February 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 10:00 Introduction Sam Dobson 10:05 Update since the interim result Shemara Wikramanayake 10:30 Infrastructure Shemara Wikramanayake, Ben Way, Michael Silverton, Nick O’Kane 11:10 EMEA Paul Plewman, Ben Way, Nick O’Kane, Michael Silverton 3
Slide 4: Update since the interim result
Update since the interim result Shemara Wikramanayake Managing Director and Chief Executive Officer
Slide 5: About Macquarie
Introduction Update since interim report Infrastructure EMEA Appendices About Macquarie Annuity-style activities | Net Profit Contribution Markets-facing activities | Net Profit Contribution MAM BFS CGM MacCap Macquarie Asset Banking and Commodities and Global Markets Macquarie Capital Management Fi
Slide 6: 3Q22 Overview
Introduction Update since interim report Infrastructure EMEA Appendices 3Q22 Overview ● Improved overall market conditions in 3Q22 resulting in a record quarter for the Group ● Macquarie's annuity-style businesses' (MAM and BFS) combined 3Q22 net profit contribution1 down on the prior corresponding
Slide 7: 3Q22 Overview: Annuity-style businesses
Introduction Update since interim report Infrastructure EMEA Appendices 3Q22 Overview Annuity-style businesses Macquarie Asset Management Banking and Financial Services ~33% 1H22 contribution1 ~12% 1H22 contribution1 ● AUM2 of $A750.1b at Dec 21, up 2% on Sep 21 ● Total BFS deposits4 of $A91.6b at D
Slide 8: 3Q22 Overview: Markets-facing businesses
Introduction Update since interim report Infrastructure EMEA Appendices 3Q22 Overview Markets-facing businesses Commodities and Global Markets Macquarie Capital ~43% 1H22 contribution1 ~12% 1H22 contribution1 ● Strong results across the commodities platform, particularly in global Gas & Power and ●
Slide 9: Macquarie's global footprint
Introduction Update since interim report Infrastructure EMEA Appendices Macquarie's global footprint Americas EMEA Asia Australia2 Total staff1 Staff Staff Staff Staff 17,586 3,190 2,502 3,943 7,951 CANADA USA New York EUROPE Paris ASIA Manila AUSTRALIA NEW ZEALAND Calgary Boise Orlando Amsterdam Re
Slide 10: Funded balance sheet remains strong
Introduction Update since interim report Infrastructure EMEA Appendices Funded balance sheet remains strong Term liabilities exceed term assets 30 Sep 211 31 Dec 211 $Ab $Ab 270 270 Total customer deposits7 240 240 ST wholesale issued paper 14% $A96.0b 5% 210 ST wholesale issued paper 11% 210 Other
Slide 11: Basel III capital position
Introduction Update since interim report Infrastructure EMEA Appendices Basel III capital position ● APRA Basel III Group capital at Dec 21 of $A33.1b; Group capital surplus of $A11.5b1,2,3 ● APRA Basel III Level 2 CET1 ratio: 12.2%3; Harmonised Basel III Level 2 CET1 ratio: 15.4% Group regulatory s
Slide 12: Business capital requirements
Introduction Update since interim report Infrastructure EMEA Appendices Business capital requirements1 3Q22 Key drivers MAM $Ab $A4.1b increase ● Private Markets’ investments largely overall 22 0.2 0.3 $A21.6b offset by divestments and 0.4 0.0 0.1 (0.1) acquisition of Central Park Group 21 0.5 $A20.
Slide 13: Capital management update
Introduction Update since interim report Infrastructure EMEA Appendices Capital management update Capital Raising Dividend Reinvestment Plan (DRP) ● On 29 Oct 21, Macquarie announced a capital raising via a non- ● On 14 Dec 21, 407,884 ordinary shares were issued and allocated at underwritten $A1.5b
Slide 14: Strong regulatory ratios
Introduction Update since interim report Infrastructure EMEA Appendices Strong regulatory ratios Bank Group Level 2 Ratios (Dec 21) 125% 17.5% 7.5% 200% 120% 15.4% 121% 1 14.0% 6.0% 5.8% 175% 115% 1 177% 150% 110% 12.2% 5.1% 10.5% 4.5% 125% 105% 7.0% 3.0% 100% 100% 75% 95% 3.5% 1.5% 50% 90% 0.0% 0.0
Slide 15: Regulatory update
Introduction Update since interim report Infrastructure EMEA Appendices Regulatory update Australia Update on prudential standards APRA has finalised or is in the process of implementing changes to a number of prudential standards1. Macquarie notes the following key updates: ● On 29 Nov 21, APRA fin
Slide 16: Macquarie Group Foundation: Social Impact Investing
Introduction Update since interim report Infrastructure EMEA Appendices Macquarie Group Foundation: Social Impact This $A20m allocation will enable the Foundation to build on the groundwork completed through a FY22 pilot over the next Investing two years. Funds will be used to address employment and
Slide 17: Short-term outlook
Introduction Update since interim report Infrastructure EMEA Appendices Short-term outlook Factors impacting short-term outlook Annuity-style businesses Markets-facing businesses Non-Banking Group Macquarie Asset Management (MAM) Macquarie Capital (MacCap) ● Excluding Waddell & Reed, ● Transaction a
Slide 18: Short-term outlook
Introduction Update since interim report Infrastructure EMEA Appendices Short-term outlook The range of factors that may influence our short-term outlook include: ● The duration of COVID-19, speed of the global economic recovery and extent of government support for economies ● Market conditions incl
Slide 19: Medium-term outlook
Introduction Update since interim report Infrastructure EMEA Appendices Medium-term outlook Macquarie remains well-positioned to deliver superior performance in the medium term Deep expertise in major markets Build on our strength in business and geographic diversity and continue to adapt our portfo
Slide 20: Medium term
Introduction Update since interim report Infrastructure EMEA Appendices Medium term Annuity-style businesses Markets-facing businesses Non-Banking Group Macquarie Asset Management (MAM) Macquarie Capital (MacCap) ● Global specialist asset manager, well-positioned to respond to current market conditi
Slide 21: Approximate business Basel III Capital and ROE
Introduction Update since interim report Infrastructure EMEA Appendices Approximate business Basel III Capital and ROE 30 Sep 21 Operating Group APRA Basel III Capital1 Approx. 1H22 Return on Approx. 15-year Average @ 8.5% ($Ab) Ordinary Equity2 Return on Ordinary Equity3 Annuity-style businesses 7.
Slide 22: Infrastructure
Infrastructure Shemara Wikramanayake Managing Director and Chief Executive Officer
Slide 23: Introduction Update since interim report Infrastructure
Introduction Update since interim report Infrastructure EMEA Appendices 23
Slide 24: Our infrastructure expertise at a glance
Introduction Update since interim report Infrastructure EMEA Appendices Our infrastructure expertise at a glance A pioneer in the global infrastructure sector as advisor, manager and developer Equities is Infrastructure Sector No.1 Corporate Advisory ranked 1st Global Infrastructure for Infrastructu
Slide 25: Infrastructure expertise built over 27 years
Introduction Update since interim report Infrastructure EMEA Appendices Infrastructure expertise built over 27 years Digital infrastructure (since ’15) Social infrastructure (since ’07) Ports (since ’05) Energy infrastructure (since ’04) Communications and Media (since ’02) Utilities (since ’01) Air
Slide 26: The global infrastructure opportunity
Introduction Update since interim report Infrastructure EMEA Appendices The global infrastructure opportunity $US75tr of total infrastructure investment required globally by 2040, with Asia requiring ~54% of total global investment1 Investment need Policy support Green Energy Digital infra $US16t $U
Slide 27: Macquarie Asset Management
Introduction Update since interim report Infrastructure EMEA Appendices Macquarie Asset Management Activity highlights ● Record year of deployment with, Investing in, managing and enhancing infrastructure businesses 16 new infrastructure investments in on behalf of clients for three decades 10 marke
Slide 28: Our capabilities in digital infrastructure
Introduction Update since interim report Infrastructure EMEA Appendices Our capabilities in Our infrastructure digital infrastructure real assets - US Ports 28
Slide 29: Macquarie Capital
Introduction Update since interim report Infrastructure EMEA Appendices Macquarie Capital Activity highlights ● Partnering with governments and the public Leading infrastructure innovation for three decades as an sector to deliver infrastructure improvements adviser, investor and developer and neces
Slide 30: Infrastructure - Digital infrastructure spotlight
Introduction Update since interim report Infrastructure EMEA Appendices Infrastructure - Digital infrastructure spotlight on Accelerate – spotlight on Onivia Maryland Partners 30
Slide 31: Commodities and Global Markets
Introduction Update since interim report Infrastructure EMEA Appendices Commodities and Global Markets Activity highlights ● Leases physical power and gas assets across CGM works with infrastructure-related sectors to provide risk the US to serve our customers’ needs and management, capital & financ
Slide 32: Our capabilities in shipping finance
Introduction Update since interim report Infrastructure EMEA Appendices Our capabilities in shipping finance 32
Slide 33: What's next
Introduction Update since interim report Infrastructure EMEA Appendices What’s next Responding to long-term trends towards decarbonisation, digitisation and urbanisation ● Environment strong, underpinned by long-term trends towards decarbonisation, digitisation and urbanisation, against a backdrop o
Slide 34: Europe, the Middle East and Africa
Europe, the Middle East and Africa Paul Plewman Chief Executive Officer, EMEA
Slide 35: Introduction Update since interim report Infrastructure
Introduction Update since interim report Infrastructure EMEA Appendices 35
Slide 36: Macquarie in EMEA
Introduction Update since interim report Infrastructure EMEA Appendices Macquarie in EMEA Regional presence since 2,502 1989 staff1 and employing a further 63,000 people 20 through portfolio companies2 Locations 3 37% 15 markets New regulatory hubs, post-Brexit, in Paris, Dublin and Increase in regi
Slide 37: 33 years of growth, innovation and collaboration in EMEA
Introduction Update since interim report Infrastructure EMEA Appendices 33 years of growth, innovation and collaboration in EMEA Key Commodities Energy Capital markets Infrastructure Renewables Technology Recent highlights from FY22 EV Battery Storage Carbon Capture and Storage Hydrogen New offshore
Slide 38: Delivering on a growth strategy
Introduction Update since interim report Infrastructure EMEA Appendices Delivering on a growth strategy 2019 Operational Briefing 2022 update Building on core sector strengths: Core strengths: ● Global development pipeline for ● Infrastructure: $A29.3b raised and $A26.0b deployed through managed fun
Slide 39: Creating income growth and diversity
Introduction Update since interim report Infrastructure EMEA Appendices Creating income growth and diversity Share of total EMEA income by Operating Group1 $A2,863m x3 Total income in FY21 Income growth 2010 100% 4000 to 2020 3472 3470 90% 3500 3076 80% 2863 3000 70% 2484 Share of total income over
Slide 40: Opportunities across the EMEA market
Introduction Update since interim report Infrastructure EMEA Appendices Opportunities across the EMEA market Strong market fundamentals Aligned to areas of Macquarie expertise $A35.2t Assets under management for total EMEA market8 6% €28t 5.5% Projected growth of UK economy Projected investment Annu
Slide 41: Macquarie Asset Management
Introduction Update since interim report Infrastructure EMEA Appendices Macquarie Asset Management Activity highlights ● Acquired 6 new infrastructure and real asset Investing in EMEA for more than 20 years, providing clients with businesses in 6 markets access to specialist expertise across private
Slide 42: Our capabilities in UK real estate
Introduction Update since interim report Infrastructure EMEA Appendices Our capabilities in European client UK real estate solutions 42
Slide 43: Commodities and Global Markets
Introduction Update since interim report Infrastructure EMEA Appendices Commodities and Global Markets Activity highlights ● Actively supplying and trading across all liquid Strong and growing presence in region, providing a full-service wholesale European gas hubs offering to our diverse client bas
Slide 44: Our work in European energy markets
Introduction Update since interim report Infrastructure EMEA Appendices Our work in European Financial markets - energy markets spotlight on Domivest 44
Slide 45: Macquarie Capital
Introduction Update since interim report Infrastructure EMEA Appendices Macquarie Capital Activity highlights ● Successful expansion into other markets in An integrated advisory, capital markets and principal investing continental Europe, including France, Benelux, model focused on areas of differen
Slide 46: Advisory & capital services – spotlight on Schaltbau
Introduction Update since interim report Infrastructure EMEA Appendices Advisory & capital services – Education technology - spotlight on Schaltbau spotlight on TES 46
Slide 47: What's next in EMEA
Introduction Update since interim report Infrastructure EMEA Appendices What’s next in EMEA Responding to long-term trends towards decarbonisation, digitisation and urbanisation ● Using expertise to assist with projected infrastructure requirements across transport, telco and digital ● Through GIG,
Slide 48: Operational Briefing
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Slide 49: Glossary
© macauarie 4 Glossary
Slide 50: Glossary
Introduction Update since interim report Infrastructure EMEA Appendices Glossary $A / AUD Australian Dollar CGM Commodities and Global Markets $US / USD United States Dollar CLF Committed Liquid Facility £ / GBP Pound Sterling CMA Cash Management Account € Euro DCM Debt Capital Markets 1H22 Half Yea
Slide 51: Glossary
Introduction Update since interim report Infrastructure EMEA Appendices Glossary GIF III Macquarie Global Infrastructure Fund 3 MIP I Macquarie Infrastructure Partners Fund 1 GIG Green Investment Group MIP II Macquarie Infrastructure Partners Fund 2 IPO Initial Public Offering MW Mega Watt IFRS Inte
Slide 52: Operational Briefing
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