Macquarie Group, Ltd. · ASX:MQG
Macquarie — H1 2008 Earnings Presentation
83 slides from Macquarie's earnings presentation, Nov 13, 2007
Slide 1: Result Announcement for Macquarie Bank Limited half year ended 30 Sep 2007
For personal use only Macquarie Group Limited Result Announcement for Macquarie Bank Limited half year ended 30 Sep 2007 Presentation to Investors and Analysts Allan Moss, Managing Director & Chief Executive Officer Richard Sheppard, Deputy Managing Director Greg Ward, Chief Financial Officer 13 Nov
Slide 2: Disclaimer
For personal use only Disclaimer This material has been prepared for professional investors. The firm preparing this report has not taken into account any customer’s particular investment objectives, financial resources or other relevant circumstances and the opinions and recommendations herein are
Slide 3: Agenda
For personal use only AGENDA 1. Introduction – Richard Sheppard 2. Highlights of result – Allan Moss 3. Result analysis – Greg Ward 4. International and Group commentary, Outlook – Allan Moss 5. Appendix I – Restructure update 6. Appendix II – Facts on specialist funds 7. Glossary Unless otherwise s
Slide 4: Macquarie Group Limited
For personal use only Macquarie Group Limited Macquarie will formally operate as Macquarie Group Limited (ASX:MQG) from today – implementation date MQG shares commenced trading 5 November on a deferred settlement1 basis MBL remains quoted on ASX as a debt listing to support the continued quota
Slide 5: Highlights of Result
For personal use only 2. HIGHLIGHTS OF RESULT Allan Moss – Managing Director and Chief Executive Officer Macquarie Group Limited Result Announcement for Macquarie Bank Limited half year ended 30 Sep 2007 13 Nov 2007 – Presentation to Investors and Analysts
Slide 6: Record half – Profit of $A1.06 billion
Record half – Profit of $A1.06 billion 45% increase on pcp For personal use only $Am 1,600 1H 2H $A1.46b 1,400 1,200 $A1.06b 1,000 $A916m $A812m 800 600 $A494m 400 $A333m $A250m 200 0 2002 2003 2004 2005 2006 2007 1H08 Throughout this presentation, financial years 2005 to 2008 are reported under AIF
Slide 7: Comments on the second quarter to Sep
Comments on the second quarter to 30 Sep For personal use only Most markets in which we operate were not significantly affected by credit market conditions 2Q08 (to 30 Sep 2007) result was 26% up on pcp, although 17% down on very strong 1Q08 (to 30 Jun 2007) Asset realisations continue to be a
Slide 8: EPS of $A4.02
EPS of $A4.02 34% increase on pcp For personal use only $A 1H 2H 6.00 $A5.92 5.00 $A4.00 $A4.02 4.00 $A3.70 3.00 $A2.33 2.00 $A1.65 $A1.33 1.00 0.00 2002 2003 2004 2005 2006 2007 1H08 Basic EPS 8
Slide 9: Dividend per share of $A1.45
Dividend per share of $A1.45 16% increase on pcp For personal use only 100% franked Target annual payout ratio 50-60% $A 4.00 Interim Final Special $A3.15 3.00 $A2.01 $A2.15 2.00 $A1.43 $A1.45 $A1.22 1.00 $A0.93 0.00 2002 2003 2004 2005 2006 2007 1H08 9
Slide 10: Income of $A4.7 billion
Income of $A4.7 billion 38% increase on pcp For personal use only $Am 1H 2H 8,000 $A7.2b 7,000 6,000 5,000 $A4.8b $A4.7b $A4.2b 4,000 3,000 $A2.8b $A2.2b 2,000 $A1.8b 1,000 0 2002 2003 2004 2005 2006 2007 1H08 10
Slide 11: Assets under management of $A224 billion
Assets under management of $A224 billion 14% increase since March 2007 For personal use only Strengthening of $A versus major currencies has impacted growth rate during the period $Ab 250 FSG/FMG Wholesale FSG/FMG Retail $A224b1 Other Specialist 200 $A197b Real Estate Infrastructure 150 $A140b 100
Slide 12: International income of $A2.5 billion
International income of $A2.5 billion 70% increase on pcp For personal use only 55% of total income $A/$US exchange rate strengthened from $0.54 at 30 Sep 2002 to $0.89 at 30 Sep 2007 $Am 1H 2H 4,000 $A3.78b 3,500 3,000 2,500 $A2.46b 2,000 $A2.03b 1,500 $A1.27b 1,000 $A696m 500 $A384m $A432m 0 2
Slide 13: Over 11,000 staff
Over 11,000 staff 10% increase since Mar 2007, international up 22% For personal use only International staff 39% of total Over 4,200 staff in international locations Headcount 12,000 Australia International 11,066 10,000 10,023 8,183 8,000 6,556 6,000 5,716 4,726 4,839 4,000 2,000 0 2002 2003 2
Slide 14: Result Analysis
For personal use only 3. RESULT ANALYSIS Greg Ward – Chief Financial Officer Macquarie Group Limited Result Announcement for Macquarie Bank Limited half year ended 30 Sep 2007 13 Nov 2007 – Presentation to Investors and Analysts
Slide 15: Key drivers of half
For personal use only Key drivers of half Diversity of operations provided a strong broad-based performance in a wide range of markets Continued international growth across all Groups — International income up 70% on pcp to $A2.5b from $A1.4b — International staff up 22% to 4,264 from 3,501 (Mar
Slide 16: Key drivers of half (cont.)
Key drivers of half (cont.) For personal use only Strong investment banking deal flow Good income from asset realisations including Boart Longyear, Macquarie-IMM (Korea); slightly down on pcp which included Goodman Group Assets under management up 14% to $A224b from $A197b (March 2007) and ass
Slide 17: Operating income
Operating income 38% increase on pcp to $A4.7b For personal use only $Am Goodman Group gains 5,000 Asset & equity investment and other income 4,500 Interest income 4,000 Trading income Fee and commission income 3,500 3,000 2,500 2,000 1,500 1,000 500 0 Sep-04 Mar-05 Sep-05 Mar-06 Sep-06 Mar-07 Sep-0
Slide 18: Fee and commission income
Fee and commission income 48% increase on pcp to $A2,478m For personal use only $Am 1,000 900 800 Sep 2006 Mar 2007 Sep 2007 700 600 500 400 300 200 100 0 Base fees Performance M&A, Advisory Brokerage and Wrap and Financial Banking, Other fee and fees and Commissions Other Products Lending & commiss
Slide 19: Funds management income
For personal use only Funds management income AUM up 46% on pcp to $A224b; base fees up 49% on pcp to $A477m Performance fees significantly up on pcp to $A169m Capital raisings in specialist funds continue with strong demand for unlisted funds AUM & Base fees Performance fees AUM ($Ab) Base Fe
Slide 20: Specialist fund raisings – strong support from international investors
Specialist fund raisings – strong support from international investors For personal use only $A13.8b raised over 1H08 79% from international investors and 79% into unlisted funds or syndicates Half Year Fund raisings $Ab 14 1H08 12 10 1H08 Raising Fund ($Ab) 8 Unlisted Infrastructure 4.00 Listed
Slide 21: Record broking market conditions
For personal use only Record broking market conditions Equity markets turnover in key regions has shown strong growth on pcp Market share across key markets broadly stable Ô Increased competition in equity derivatives in Hong Kong and Singapore has impacted market share Index Market Turnover 200
Slide 22: Net trading income
Net trading income 60% increase on pcp to $A895m For personal use only Net trading income before adjusting for Sep 07 Mar 07 Sep 06 pcp accounting impacts up 60% on pcp $Am $Am $Am Ô Global equity markets indices have reported strong growth, particularly in Asia Equity Markets 593 404 361 64% Ô In
Slide 23: Net interest income
Net interest income 86% increase on pcp to $A468m For personal use only Loan Assets (excluding securitised Sep 07 Mar 07 Sep 06 $Ab 30 mortgages) $Am $Am $Am Real estate Net interest income (as reported) 523 394 334 Mortgages 25 Accounting for swaps reported as trading income (55) (102) (82) Margin
Slide 24: Net income from asset & equity investments and other transactions
Net income from asset & equity investments and other transactions For personal use only Sep 07 Mar 07 Sep 06 $Am $Am $Am Asset & equity investment income Profit on disposal of assets and equity investments 687 664 434 (Boart Longyear, Macquarie New York Parking (Icon Parking), Taiwan Broadband Commu
Slide 25: Equity investments
Equity investments1 Up 15% since March 2007 to $A5.8b2 For personal use only $A1.2b of unrealised gains4 Substantial investments held in Macquarie-managed funds: $A3.0b $Ab Investments at Cost3 Macquarie Airports 7.0 Macquarie Capital Alliance Group Macquarie Communications Infrastructure Group
Slide 26: Held for Sale Assets and Investments
Held for Sale Assets and Investments1 Over $A650m sold since March 2007 For personal use only $Am 1400 $562m of Held for Sale On balance sheet assets at 30 September Acquisitions 1200 Disposals 2007 include: Ô Express Offshore Transport Ô Longview Oil & Gas 1000 Ô Retirement Village Group Assets
Slide 27: Business segment analysis – operating income
Business segment analysis – operating income For personal use only Investment banking: 41%1 Asset & wealth management: 27%1 Up 44% on pcp Up 28% on pcp Infrastructure, real estate and other specialist funds Mergers and acquisitions, advisory, underwriting and principal transactions Retail and wholes
Slide 28: Operating expenses and headcount
For personal use only Operating expenses and headcount Expense Income (LHS) to income ratio Expense/income ratio down to $Am Expenses (LHS) (%) 70.8% (69.8% excluding Expense to income ratio (RHS) 82 restructure costs) 7,000 80 One-off restructure costs have been accrued 6,000 78 Strong headco
Slide 29: Taxation
For personal use only Taxation Sep 07 Mar 07 Sep 06 % % % Corporate tax rate 30.0 30.0 30.0 Rate differential on offshore income (11.0) (9.8) (11.5) Non-deductible distribution paid/provided on MIS 0.4 0.5 0.5 Non-deductible options expense 1.4 1.7 1.2 Other (0.3) (0.3) (1.4) Effective tax rate 20.5
Slide 30: Capital management
Capital management Tier 1 capital ratio 17.6% For personal use only $Am Tier 1 Ratio 10,000 20% 18% 8,000 16% 6,000 14% MIS 12% MIPS 4,000 CPS 10% 2,000 Core Tier 1 equity 8% Tier 1 deductions 0 6% T1 ratio 4% -2,000 2% -4,000 0% Mar Sep Mar Sep Mar Sep Mar Sep Mar Sep Mar Sep 2002 2002 2003 2003 20
Slide 31: Risk-weighted assets growth moderating
For personal use only Risk-weighted assets growth moderating $Ab 16% 45 annualised growth rate Market risk 40 1 Off balance sheet exposures 35 41% annual Financial Products loans growth rate Equity Markets loans 30 Mortgages 25 Investment Lending Institutional Stockbroking 20 Leasing 15 Relationship
Slide 32: Outlook with respect to capital
For personal use only Outlook with respect to capital Key driver of capital position is business growth — RWA growth slowed during the 6 months to 30 September 2007 — Experienced only a moderate increase in Tier 1 deductions during the same period Basel II — Several key Basel II and capital prud
Slide 33: Outlook with respect to capital
For personal use only Outlook with respect to capital Minimum regulatory capital requirement for the group will be calculated as the sum of the dollar value of: — The ADI Group minimum Tier 1 capital requirement, based on a percentage of RWAs plus Tier 1 deductions (same as existing ADI methodolog
Slide 34: Macquarie Group Limited - Financing strategy
Macquarie Group Limited - Financing strategy For personal use only MQG and MBL will each have dedicated and independent funding, capital management and liquidity management arrangements MQG has obtained funding commitments of: — $A8b senior unsecured bank debt facility, expected to be upsized by
Slide 35: International and Group Commentary, Outlook
For personal use only 4. INTERNATIONAL AND GROUP COMMENTARY, OUTLOOK Allan Moss – Managing Director and Chief Executive Officer Macquarie Group Limited Result Announcement for Macquarie Bank Limited half year ended 30 Sep 2007 13 Nov 2007 – Presentation to Investors and Analysts
Slide 36: Strong broad-based growth
For personal use only Strong broad-based growth Over two-thirds of income from Asian time zone, including Australasia, which continues to be very strong Broad growth across Group supported by: — previous business investment — good market conditions except in credit markets — diversification by p
Slide 37: Strong investor demand for asset categories in which Macquarie excels
Strong investor demand for asset categories in which Macquarie excels For personal use only Strong investor demand for infrastructure and real estate — Physical assets, predictable long-term cash flows — Credit available on good terms to finance quality assets — Continues to be significant availab
Slide 38: No unusual trading exposures
For personal use only No unusual trading exposures As previously advised: — Main business focus is making returns by providing services to clients rather than by principal trading — No material exposures not already known to investors — No problem trading exposures — No material problem credit exp
Slide 39: Growing in Asia-Pacific
Growing in Asia-Pacific Income1 up 96% on pcp to $A994m For personal use only Income1 Staff numbers $Am Headcount 1,400 2,000 1,800 1,200 1,600 1,000 1H08 1,400 1,200 800 1,000 600 800 400 600 400 200 200 0 0 2003 2004 2005 2006 2007 1H08 2003 2004 2005 2006 2007 Sep-07 1H 2H Staff up 13% to 1,888
Slide 40: Growing in Asia-Pacific
Growing in Asia-Pacific Income1 up 96% on pcp to $A994m For personal use only Asia largely unaffected by global credit market disruption Macquarie Capital Securities: 75% up on pcp, expansion of China product offering, increasing Indian coverage ECM and M&A – Lead manager roles in significant
Slide 41: Growing in Asia-Pacific
Growing in Asia-Pacific Income1 up 96% on pcp to $A994m For personal use only Other fund initiatives (cont.): — Macquarie Goodman Asia – acquisition of 50.1% of J-REP, listed Japanese logistics development and funds management entity — Macquarie International Infrastructure Fund – $S272m acquisiti
Slide 42: Growing in Europe, Africa & the Middle East
Growing in Europe, Africa & the Middle East Income1 up 55% on pcp to $A774m For personal use only Income1 Staff numbers $Am Headcount 1,600 1,400 1,400 1,200 1,200 1,000 1,000 800 800 1H08 600 600 400 400 200 200 0 0 2003 2004 2005 2006 2007 1H08 2003 2004 2005 2006 2007 Sep-07 1H 2H Staff up 22%
Slide 43: Growing in Europe, Africa & the Middle East
Growing in Europe, Africa & the Middle East Income1 up 55% on pcp to $A774m For personal use only New funds: — Macquarie European Infrastructure Fund II (MEIF II) – European unlisted infrastructure fund. Final close May 2007 with €4.6b — Macquarie European Infrastructure Fund III – Marketing to in
Slide 44: Growing in Europe, Africa & the Middle East
Growing in Europe, Africa & the Middle East Income1 up 55% on pcp to $A774m For personal use only Other fund initiatives (cont.): — Successful refinancing of specialist fund assets on good terms — APRR: €500m (MIG/MEIF) — Thames Water: £900m (MEIF I/MEIF II) — Rome Airport – sold realising 2.6 x e
Slide 45: Growing in the Americas
Growing in the Americas Income1 up 57% on pcp to $A689m For personal use only Income1 Staff numbers $Am Headcount 1,200 1,400 1,000 1,200 1,000 800 1H08 800 600 600 400 400 200 200 0 0 2003 2004 2005 2006 2007 1H08 2003 2004 2005 2006 2007 Sep 07.2 1H 2H Staff up 38% to 1,231 from 890 (Mar 07) 1 E
Slide 46: Growing in the Americas
Growing in the Americas Income1 up 57% on pcp to $A689m For personal use only New funds: — Initiatives in progress in the region New business / JV: — Macquarie Capital Securities – Establishment of institutional US equities sales trading and research business — Orion Securities (Canada) – acquis
Slide 47: Growing in the Americas
Growing in the Americas Income1 up 57% on pcp to $A689m For personal use only Other fund initiatives (cont.): — Successful refinancing of specialist fund assets on good terms — Airport services and district energy businesses: $US1.2b (MIC) — 407 ETR : $C625m (MIG) — Clean Power Income Fund – Macqu
Slide 48: Growing in Australia
Growing in Australia Income1 up 9% on pcp to $A2.0b For personal use only Income1 Staff numbers $Am Headcount 3,500 8,000 7,000 3,000 6,000 2,500 1H08 5,000 2,000 4,000 1,500 3,000 1,000 2,000 500 1,000 0 0 2003 2004 2005 2006 2007 1H08 2003 2004 2005 2006 2007 Sep 07 1H 2H Staff up 4% to 6,802 fr
Slide 49: Growing in Australia
Growing in Australia Income1 up 9% on pcp to $A2.0b For personal use only Australian income up 9% on strong pcp which benefited from substantial Australian equity investment realisations, including $A302m profit from Goodman Group realisation Australia much less affected by global credit market
Slide 50: Broad growth across Group
For personal use only Broad growth across Group Index 160 Banking & Securitisation 140 Funds Management 120 Financial Services 100 80 Real Estate 60 Treasury & Commodities 40 Equity Markets 20 Macquarie Capital (formerly Investment Banking Group) 0 1H 2007 1H 2008 Percentage contribution based on ma
Slide 51: Macquarie Capital (formerly Investment Banking Group)
Macquarie Capital (formerly Investment Banking Group) For personal use only Former name Current name Corporate Finance Macquarie Capital Advisers Investment Banking Funds Macquarie Capital Funds (within Corporate Finance) (within Macquarie Capital Advisers) Macquarie Securities Macquarie Capital Sec
Slide 52: Macquarie Capital: 60% of MBL profit, 55% up on pcp
Macquarie Capital (formerly Investment Banking Group) 60% of MBL profit1, 55% up on pcp For personal use only Comments on the first half: Income by region Strong result despite challenging credit market conditions in Q2 Increased income on pcp across all divisions: — Macquarie Capital Advisers2:
Slide 53: Macquarie Capital Advisers major transactions
Macquarie Capital (formerly Investment Banking Group) 60% of MBL profit1, 55% up on pcp For personal use only Macquarie Capital Advisers major transactions: Australia/NZ Transurban Group/Sydney Roads Group, Transfield Holdings/Campus Living Villages Fund, Catalyst/Crescent Capital, AXA Asia Pacific/
Slide 54: Macquarie Capital: new capital raisings and investments
Macquarie Capital (formerly Investment Banking Group) 60% of MBL profit1, 55% up on pcp For personal use only Macquarie Capital Funds2: $A5.7b3 in new capital raisings by managed funds and consortia including: — DUET Group (Australia), Macquarie Communications Infrastructure Group (Australia) Macq
Slide 55: Macquarie Capital: Securities, Products and Finance
Macquarie Capital (formerly Investment Banking Group) 60% of MBL profit1, 55% up on pcp For personal use only Macquarie Capital Securities (institutional cash equities) – 9% of MBL profit1 — Excellent overall result – 65% up on pcp, Q2 result in line with Q1 — Overall results driven by increased v
Slide 56: Macquarie Capital: operating environment and outlook
Macquarie Capital (formerly Investment Banking Group) 60% of MBL profit1, 55% up on pcp For personal use only Current operating environment: M&A and ECM pipelines remain reasonable Continuing high securities trading volumes in both Australian and Asian markets Funds — Assets continue to perfor
Slide 57: Equity Markets Group
Equity Markets Group 15% of MBL profit1, 130% up on pcp For personal use only Comments on the first half: Income by region Excellent result – well up on pcp Strong contributions from all divisions, particularly international equity products In Australia, contributions from funds products and e
Slide 58: Equity Markets Group outlook
Equity Markets Group 15% of MBL profit1, 130% up on pcp For personal use only Outlook: Current trading conditions are exceptionally good but may not be sustained Outlook for 2H08 lower than very strong 1H08, partly reflecting seasonality Expect full year result to be up on pcp 1 Percentage con
Slide 59: Treasury & Commodities
Treasury & Commodities 10% of MBL profit1, in line with pcp (well up excluding oil and gas realisation in pcp) For personal use only Comments on the first half: Income by region Strong result – broadly in line with very strong pcp which included significant oil and gas realisation Q1 performance
Slide 60: Treasury & Commodities outlook
Treasury & Commodities 10% of MBL profit1, in line with pcp (well up excluding oil and gas realisation in pcp) For personal use only Current operating environment: Transaction volumes generally strong Commodity markets volatility continuing at satisfactory levels Outlook: Expect 2H08 to be dow
Slide 61: Real Estate Group
Real Estate Group 4% of MBL profit1, 64% down on pcp (170% up excluding Goodman Group profit in pcp) For personal use only Comments on the first half: Income by region Good result but down on pcp which included Goodman Group gain Activity levels consistent over Q1 and Q2. Q2 contribution tempere
Slide 62: Real Estate Group outlook
Real Estate Group 4% of MBL profit1, 64% down on pcp (170% up excluding Goodman Group profit in pcp) For personal use only Current operating environment: US economy slowing but expect global growth to underpin continued demand for investment in real estate, especially in Asia Improving residenti
Slide 63: Financial Services Group
Financial Services Group 4% of MBL profit1, 50% up on pcp For personal use only Comments on the first half: Income by region Significantly up on pcp Q2 in line with Q1 Strong revenue growth across all divisions Total assets under Advice/Administration/Management up 35% to $A92.4b from $A68.6
Slide 64: Financial Services Group outlook
Financial Services Group 4% of MBL profit1, 50% up on pcp For personal use only Current operating environment: Strong inflows into both Cash Management Trust and Wrap Continuing high broking volumes Outlook: Expect 2H08 to be broadly in line with 1H08 Expect full year to be up on pcp Scale
Slide 65: Funds Management Group
Funds Management Group 5% of MBL profit1, very significantly up on pcp For personal use only Comments on the first half: Income by region Very significantly up on pcp due to sale of Macquarie-IMM Investment Management joint venture in Korea Underlying growth in profit of 20%2 driven by strong pe
Slide 66: Banking and Securitisation Group
Banking and Securitisation Group 2% of MBL profit1, 10% down on pcp For personal use only Comments on the first half: Income by region Down on pcp due to difficult credit market conditions and continued investment in new businesses Record volumes in margin lending, loan book up 31% to $A6.3b fro
Slide 67: Banking and Securitisation Group outlook
Banking and Securitisation Group 2% of MBL profit1, 10% down on pcp For personal use only Current operating environment: Significant disruption in securitisation markets Cost of funds has increased due to global re-pricing of credit Outlook: Full year result will depend on market conditions 1
Slide 68: Brief update on global market conditions
Brief update on global market conditions For personal use only Credit markets — Australia and Asia much less affected than US and Europe — US and European credit markets are still significantly affected — We expect some of the increases in credit spreads to be long-lasting — Market conditions cont
Slide 69: Current year outlook
For personal use only Current year outlook Subject to market conditions: — In the remainder of the current year we expect: — Continued satisfactory transaction levels — Most trading businesses will benefit from geographic and product expansion — Substantial equity raisings for unlisted internation
Slide 70: Medium-term outlook
For personal use only Medium-term outlook Over the medium term we continue to be well placed due to: — Effective prudential controls — Good businesses — Committed quality staff — Diversification — Benefits of major growth strategic initiatives — Significantly increased global reach — Continued str
Slide 71: Appendix I: Restructure update
For personal use only 5. APPENDIX I Restructure update Macquarie Group Limited Result Announcement for Macquarie Bank Limited half year ended 30 Sep 2007 13 Nov 2007 – Presentation to Investors and Analysts
Slide 72: Macquarie Group Limited established
Macquarie Group Limited established For personal use only Shareholder approval received 25 October Final (second) court approval received 29 October Last day MBL shares traded 2 November MQG shares commenced trading on ASX on 5 November 2007 on a deferred settlement1 basis MBL remains quot
Slide 73: Post restructure regulatory and management framework
Post restructure regulatory and management framework For personal use only Regulation — Macquarie Group Limited will be regulated by the Australian Prudential Regulation Authority (APRA) as a non-operating holding company (NOHC) — Macquarie Bank Limited will continue to be subject to the full rang
Slide 74: Strong ratings maintained
For personal use only Strong ratings maintained MBL existing ratings maintained Positive long-term rating outlook for MBL (Moody’s) MQG rated one notch below MBL Pre-restructure Post-restructure Short-term ratings Long-term ratings Short-term ratings Long-term ratings Entities S&P/Moody’s/Fitc
Slide 75: Appendix II: Facts on specialist funds
For personal use only 6. APPENDIX II Facts on specialist funds Macquarie Group Limited Result Announcement for Macquarie Bank Limited half year ended 30 Sep 2007 13 Nov 2007 – Presentation to Investors and Analysts
Slide 76: Facts on specialist funds
For personal use only Facts on specialist funds Investment discipline — Macquarie Capital Funds has delivered a compound annual return of 19% since inception 13 years ago1 — Real Estate Funds listed property trusts have delivered a compound annual return of 15% over the past 10 years, outperformin
Slide 77: Facts on specialist funds
For personal use only Facts on specialist funds Sale of assets — Majority of funds - general policy to be long-term owners of assets — Asset prices on material sales to third parties have in all cases equalled or exceeded directors’ valuations — 11 Macquarie Capital Funds1 assets realised between
Slide 78: Facts on specialist funds
For personal use only Facts on specialist funds Gearing — All funds have their own sources of funding – asset and fund debt is non-recourse to Macquarie — Macquarie Capital Funds: — Predominantly essential or privileged assets with highly predictable, long term revenue streams — Appropriately gear
Slide 79: Glossary
For personal use only 7. GLOSSARY Macquarie Group Limited Result Announcement for Macquarie Bank Limited half year ended 30 Sep 2007 13 Nov 2007 – Presentation to Investors and Analysts
Slide 80: Glossary
For personal use only Glossary $A Australian Dollar $C Canadian dollar $US / USD United States Dollar ₤ United Kingdom Pound € Euro 1H07/1H2007 Half year ended 30 September 2006 1H08/1H2008 Half year ended 30 September 2007 1Q08 3 months ended June 2007 2H Second half 2H07/2H2007 Half year ended 31
Slide 81: Glossary
For personal use only Glossary CBD Central Business District CDO Collateralised Debt Obligation CLO Collateralised Loan Obligation CPS Converting Preference Shares ECM Equity Capital Markets EMG Equity Market Groups EPS Earnings Per Share EUR Euro FBO Fixed Base Operation FMG Funds Management Group
Slide 82: Glossary
For personal use only Glossary IBF Investment Banking Funds (new name: Macquarie Capital Funds) IH First half IPO Initial Public Offering IRR Internal Rate of Return JV Joint Venture LHS Left hand side M&A Mergers and Acquisitions MAP Macquarie Airports MBL Macquarie Bank Limited MCG Macquarie Commu
Slide 83: Glossary
For personal use only Glossary MOF Macquarie Office Trust MOU Memorandum of Understanding MPR Macquarie ProLogis Trust MQG Macquarie Group Limited n.a. Not applicable NAB Net Asset Backing NOHC Non-operating holding company NSW New South Wales, Australia NZ New Zealand p.a Per annum pcp Prior corres