Macquarie Group, Ltd. · ASX:MQG
Macquarie — Shareholder Meeting (July 2020)
53 slides from Macquarie's shareholder meeting presentation, Jul 30, 2020
Slide 1: Macquarie Group Limited 2020 Annual General Meeting
Macquarie Group Limited 2020 Annual General Meeting 30 July 2020
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
Chair’s Update Overview of FY20 1Q21 Update Agenda FY21 Outlook Formal Business Glossary
Slide 4: Chair's Update
Chair's Update Peter Warne
Slide 5: Introduction
Macquarie I Annual General Meeting I macquarie.com Chair's Update Overview of FY20 1Q21 Update FY21 Outlook Formal Business Glossary Introduction While Macquarie has felt the While we are focused on addressing immediate effects of this pandemic, the needs, we are equally committed to our ongoing res
Slide 6: Macquarie's response to COVID-19
Macquarie I Annual General Meeting I macquarie.com Chair's Update Overview of FY20 1Q21 Update FY21 Outlook Formal Business Glossary Macquarie’s response to COVID-19 Employees Clients • Gradual, voluntary return to office commenced in certain locations where safe • Personal Banking and vehicle lease
Slide 7: Macquarie's response to COVID-19
Macquarie I Annual General Meeting I macquarie.com Chair's Update Overview of FY20 1Q21 Update FY21 Outlook Formal Business Glossary Macquarie’s response to COVID-19 Portfolio Companies Community • Working with MIRA and Macquarie Capital portfolio companies to ensure • $A20m allocation to Macquarie
Slide 8: Financial performance
Macquarie I Annual General Meeting I macquarie.com Chair's Update Overview of FY20 1Q21 Update FY21 Outlook Formal Business Glossary Financial performance Operating income Profit $Am FY20 $Am FY20 14,000 3,000 $A12,325m $A2,731m ▼3% ▼8% 10,000 ON FY19 2,000 ON FY19 6,000 1,000 FY16 FY17 FY18 FY19 FY
Slide 9: FY20 funded balance sheet initiatives
Macquarie I Annual General Meeting I macquarie.com Chair's Update Overview of FY20 1Q21 Update FY21 Outlook Formal Business Glossary FY20 funded balance sheet initiatives Despite the challenges presented in the final months of our 2020 financial year, our diversity of business mix and geography, str
Slide 10: FY20 dividend
Macquarie I Annual General Meeting I macquarie.com Chair's Update Overview of FY20 1Q21 Update FY21 Outlook Formal Business Glossary FY20 dividend 2H20 ORDINARY DIVIDEND FROM FY20 ORDINARY DIVIDEND FROM $A1.80 $A3.60 (45% franked) $A4.30 $A5.75 (45% franked) (40% franked) IN 2H19 (40% franked) IN FY
Slide 11: Risk culture and conduct
Macquarie I Annual General Meeting I macquarie.com Chair's Update Overview of FY20 1Q21 Update FY21 Outlook Formal Business Glossary Risk culture and conduct • Macquarie’s long-established risk culture and our management of conduct risk is well embedded across all parts of the organisation. Key aspe
Slide 12: Risk culture and conduct in practice
Macquarie I Annual General Meeting I macquarie.com Chair's Update Overview of FY20 1Q21 Update FY21 Outlook Formal Business Glossary Risk culture and conduct in practice Operating and Support Groups, Risk Management Group (RMG), Integrity Office and Human Resources work together to maintain our stro
Slide 13: Environmental, Social and Governance (ESG)
Macquarie I Annual General Meeting I macquarie.com Chair's Update Overview of FY20 1Q21 Update FY21 Outlook Formal Business Glossary Environmental, Social and Governance (ESG) Macquarie’s ESG commitment reflects our responsibility to clients, shareholders, communities, our people and the environment
Slide 14: FY20 Key ESG Milestones
Macquarie I Annual General Meeting I macquarie.com Chair's Update Overview of FY20 1Q21 Update FY21 Outlook Formal Business Glossary FY20 Key ESG Milestones Environmental Environmental and Climate Sustainability Customer and People Business conduct Macquarie and social risk social financing change i
Slide 15: Progress on driving solutions on all sources of emissions
Macquarie I Annual General Meeting I macquarie.com Chair's Update Overview of FY20 1Q21 Update FY21 Outlook Formal Business Glossary Progress on driving solutions on all sources of emissions European Emissions Trading Scheme Installing Korea's first floating LiDAR wind resource Funding deployment of
Slide 16: Diversity & Inclusion
Macquarie I Annual General Meeting I macquarie.com Chair's Update Overview of FY20 1Q21 Update FY21 Outlook Formal Business Glossary Diversity & Inclusion The diversity of our people is one of our greatest strengths. An inclusive workplace enables us to embrace diversity to deliver more innovative a
Slide 17: Macquarie in the community
Macquarie I Annual General Meeting I macquarie.com Chair's Update Overview of FY20 1Q21 Update FY21 Outlook Formal Business Glossary Macquarie in the community “ Macquarie COVID-19 Group Foundation donation fund As a company is a member for organisations providing of the society in which it $A51m re
Slide 18: Community partners
Macquarie I Annual General Meeting I macquarie.com Chair's Update Overview of FY20 1Q21 Update FY21 Outlook Formal Business Glossary Last Mile Health Monash University’s World Mosquito Program Social Finance Murdoch Children’s Research Institute World Scabies Program The Ocean Cleanup 18
Slide 19: Supporting COVID-19 relief efforts
Macquarie I Annual General Meeting I macquarie.com Chair's Update Overview of FY20 1Q21 Update FY21 Outlook Formal Business Glossary Supporting COVID-19 relief efforts $A20m allocated to the Foundation to support non-profits working to combat COVID-19 and provide relief to affected communities To da
Slide 20: Macquarie's purpose statement
Macquarie I Annual General Meeting I macquarie.com Chair's Update Overview of FY20 1Q21 Update FY21 Outlook Formal Business Glossary Macquarie’s purpose statement At Macquarie, our purpose represents what we do and why we exist. Our purpose is: Empowering people to innovate and invest for a better f
Slide 21: Overview of FY20
Overview of FY20 Shemara Wikramanayake Managing Director and Chief Executive Officer
Slide 22: 51 years of unbroken profitability
Macquarie I Annual General Meeting I macquarie.com Chair's Update Overview of FY20 1Q21 Update FY21 Outlook Formal Business Glossary 51 years of unbroken profitability TSR % Performance Total shareholder Earnings per share Dividends per share Diversified MSCI World Capital MSCI World $A2,731m return
Slide 23: FY20 result: $A2,731m down 8% on FY19
Macquarie I Annual General Meeting I macquarie.com Chair's Update Overview of FY20 1Q21 Update FY21 Outlook Formal Business Glossary FY20 result: $A2,731m down 8% on FY19 2H20 1H20 2H20 v FY20 FY19 FY20 v $Am $Am 1H20 $Am $Am FY19 Net operating income (excl. Credit and Other impairment 6,906 6,459 7
Slide 24: Net operating income movement
Macquarie I Annual General Meeting I macquarie.com Chair's Update Overview of FY20 1Q21 Update FY21 Outlook Formal Business Glossary Net operating income movement $Am 14,000 KEY DRIVERS • MAM: Increased base fees, performance fees, investment-related & other income, partially offset by 13,500 104 0
Slide 25: FY20 net profit contribution from Operating Groups
Macquarie I Annual General Meeting I macquarie.com Chair's Update Overview of FY20 1Q21 Update FY21 Outlook Formal Business Glossary FY20 net profit contribution from Operating Groups $A5,448m down 11% on FY19 ANNUITY-STYLE MARKETS-FACING ACTIVITIES ACTIVITIES $A3,439m ▲13% $A2,009m ▼35% ON FY19 ON
Slide 26: Diversification by region
Macquarie I Annual General Meeting I macquarie.com Chair's Update Overview of FY20 1Q21 Update FY21 Outlook Formal Business Glossary Diversification by region International income 67% of total income1 Total staff2 15,849, International staff 58% of total Americas EMEA Asia Australia3 25% 29% 13% 33%
Slide 27: Business mix
Macquarie I Annual General Meeting I macquarie.com Chair's Update Overview of FY20 1Q21 Update FY21 Outlook Formal Business Glossary Business mix Annuity-style activities represent approximately 63% of the Group’s performance1 Net Profit Contribution2 $Am 6,500 Annuity-style businesses: ◼ Macquarie
Slide 28: Macquarie Asset Management
Macquarie I Annual General Meeting I macquarie.com Chair's Update Overview of FY20 1Q21 Update FY21 Outlook Formal Business Glossary Macquarie Asset Management FY20 Actively manages funds for investors across multiple asset classes awards MIRA MIM FY20 Net profit contribution $A149.3b 17% on FY19 $A
Slide 29: Banking and Financial Services
Macquarie I Annual General Meeting I macquarie.com Chair's Update Overview of FY20 1Q21 Update FY21 Outlook Formal Business Glossary Banking and Financial Services Macquarie’s retail banking and financial FY20 services business awards FY20 Net profit contribution $A52.1b 35% on Mar 19 $A63.9b 20% on
Slide 30: Commodities and Global Markets
Macquarie I Annual General Meeting I macquarie.com Chair's Update Overview of FY20 1Q21 Update FY21 Outlook Formal Business Glossary Commodities and Global Markets Provides clients with access to markets, FY20 Strong contribution from client activity across all financing, financial hedging, research
Slide 31: Macquarie Capital
Macquarie I Annual General Meeting I macquarie.com Chair's Update Overview of FY20 1Q21 Update FY21 Outlook Formal Business Glossary Macquarie Capital Advises and invests alongside clients and FY20 Advisory and Infrastructure and partners to realise opportunity; develops and awards invests in infras
Slide 32: Approximate business Basel III Capital and ROE
Macquarie I Annual General Meeting I macquarie.com Chair's Update Overview of FY20 1Q21 Update FY21 Outlook Formal Business Glossary Approximate business Basel As at 31 Mar 20 III Capital Approx. 14-year and ROE Operating Group APRA Basel III Capital1 @ 8.5% ($Ab) Approx. FY20 Return on Ordinary Equ
Slide 33: Business backed by strong funding and capital
Macquarie I Annual General Meeting I macquarie.com Chair's Update Overview of FY20 1Q21 Update FY21 Outlook Formal Business Glossary Business backed by strong funding and capital MGL funded balance sheet APRA Basel III capital position8 Credit ratings 31 Mar 20 31 Mar 20 31 Mar 20 $Ab 180 ST wholesa
Slide 34: 1Q21 Update
1Q21 Update Shemara Wikramanayake Managing Director and Chief Executive Officer
Slide 35: 1Q21 Overview
Macquarie I Annual General Meeting I macquarie.com Chair's Update Overview of FY20 1Q21 Update FY21 Outlook Formal Business Glossary 1Q21 Mixed trading conditions with 1Q21 operating group contribution slightly down on the prior corresponding period (pcp) (1Q20) • Macquarie’s annuity-style businesse
Slide 36: 1Q21 Overview Annuity-style
Macquarie I Annual General Meeting I macquarie.com Chair's Update Overview of FY20 1Q21 Update FY21 Outlook Formal Business Glossary Macquarie Asset Management Banking and Financial Services ~40% ~14% 1Q21 FY20 contribution1 • AUM of $A568.0b at Jun 20, down 5% on FY20 contribution1 • Total BFS depo
Slide 37: 1Q21 Overview Markets-facing
Macquarie I Annual General Meeting I macquarie.com Chair's Update Overview of FY20 1Q21 Update FY21 Outlook Formal Business Glossary Commodities and Global Markets Macquarie Capital ~32% ~14% 1Q21 FY20 contribution1 • Increased activity as clients sought to rebalance their portfolios to FY20 contrib
Slide 38: Funded balance sheet remains strong
Macquarie I Annual General Meeting I macquarie.com Chair's Update Overview of FY20 1Q21 Update FY21 Outlook Formal Business Glossary Funded balance sheet remains strong Term liabilities exceed term assets 31 Mar 19 31 Mar 20 30 Jun 20 $Ab $Ab $Ab 180 180 180 ST wholesale issued paper 3% ST wholesale
Slide 39: Basel III capital position
Macquarie I Annual General Meeting I macquarie.com Chair's Update Overview of FY20 1Q21 Update FY21 Outlook Formal Business Glossary Basel III capital position • APRA Basel III Group capital at Jun 20 of $A24.2b; Group capital surplus of $A8.1b 1 • APRA Basel III CET1 ratio: 13.2%; Harmonised Basel
Slide 40: Business capital requirements
Macquarie I Annual General Meeting I macquarie.com Chair's Update Overview of FY20 1Q21 Update FY21 Outlook Formal Business Glossary Business capital requirements1 1Q21 key drivers $Ab 18.0 MAM $A17.7b (0.1) 0.1 (0.5) (0.0) • Mainly sell-down of European rail business 17.0 1.4 (1.2) BFS $A16.1b • Gr
Slide 41: Capital management update
Macquarie I Annual General Meeting I macquarie.com Chair's Update Overview of FY20 1Q21 Update FY21 Outlook Formal Business Glossary Capital management Dividend Reinvestment Plan (DRP) • The Board determined that a 1.5% discount would apply to shares allocated under the DRP for the 2H20 dividend upd
Slide 42: Strong regulatory ratios
Macquarie I Annual General Meeting I macquarie.com Chair's Update Overview of FY20 1Q21 Update FY21 Outlook Formal Business Glossary Strong regulatory ratios Bank Group (Jun 20) 125.0% 17.5% 7.5% 190.0% 16.3% 6.6% 189% 120.0% 14.0% 6.0% 160.0% 118% 115.0% 6.0% 13.2% 110.0% 10.5% 4.5% 130.0% 105.0% 7
Slide 43: Regulatory update
Macquarie I Annual General Meeting I macquarie.com Chair's Update Overview of FY20 1Q21 Update FY21 Outlook Formal Business Glossary Australia Regulatory • On 30 Mar 20, APRA announced the deferral of its scheduled implementation of the Basel III reforms in Australia by one year to allow ADIs to foc
Slide 44: FY21 Outlook
FY21 Outlook Shemara Wikramanayake Managing Director and Chief Executive Officer
Slide 45: Factors impacting short-term outlook
Macquarie I Annual General Meeting I macquarie.com Chair's Update Overview of FY20 1Q21 Update FY21 Outlook Formal Business Glossary Factors impacting short-term outlook Annuity-style businesses Markets-facing businesses Non-Banking Group Macquarie Asset Management (MAM) Macquarie Capital (MacCap) N
Slide 46: Short-term outlook
Macquarie I Annual General Meeting I macquarie.com Chair's Update Overview of FY20 1Q21 Update FY21 Outlook Formal Business Glossary Short-term outlook Market conditions are likely to remain challenging, especially given the significant and unprecedented uncertainty caused by the worldwide impact of
Slide 47: Medium-term outlook
Macquarie I Annual General Meeting I macquarie.com Chair's Update Overview of FY20 1Q21 Update FY21 Outlook Formal Business Glossary 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 busin
Slide 48: Medium term
Macquarie I Annual General Meeting I macquarie.com Chair's Update Overview of FY20 1Q21 Update FY21 Outlook Formal Business Glossary Medium term Annuity-style businesses Markets-facing businesses Non-Banking Group Macquarie Asset Management (MAM) Macquarie Capital (MacCap) Non-Banking Group • Leadin
Slide 49: Formal Business
Formal Business Peter Warne
Slide 50: Macquarie Group Limited 2020 Annual General Meeting
Macquarie Group Limited 2020 Annual General Meeting 30 July 2020
Slide 51: Glossary
Glossary
Slide 52: Glossary
Macquarie I Annual General Meeting I macquarie.com Chair's Update Overview of FY20 1Q21 Update FY21 Outlook Formal Business Glossary Glossary $A / AUD Australian Dollar CET1 Common Equity Tier 1 $US / USD United States Dollar CFM Commodities and Financial Markets £ / GBP Pound Sterling CGM Commoditi
Slide 53: Glossary
Macquarie I Annual General Meeting I macquarie.com Chair's Update Overview of FY20 1Q21 Update FY21 Outlook Formal Business Glossary Glossary GIFII Macquarie Global Infrastructure Fund 2 MQA Macquarie Atlas Roads GIG Green Investment Group MREI Macquarie Real Estate Investments GLL GLL Real Estate P