Macquarie Group, Ltd. · ASX:MQG

Macquarie — Investor Presentation (August 2019)

40 slides from Macquarie's investor presentation, Aug 28, 2019

1. Slide 1: Capital raising and outlook update

   Capital raising and outlook update For personal use only Presentation to investors and analysts 28 August 2019 Shemara Wikramanayake Chief Executive Officer Alex Harvey Chief Financial Officer NOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES

2. Slide 2: Disclaimer

   Macquarie I Capital raising and outlook update I macquarie.com Executive Summary Outlook update Capital Position Offer Appendix A – 1Q20 Update Appendix B – Key Risks Disclaimer For personal use only The material in this presentation has been prepared by Macquarie Group Limited (ABN 94 122 169 279)

3. Slide 3: Disclaimer

   Macquarie I Capital raising and outlook update I macquarie.com Executive Summary Outlook update Capital Position Offer Appendix A – 1Q20 Update Appendix B – Key Risks Disclaimer For personal use only Investors should be aware that certain financial data and ratios included in this presentation are “

4. Slide 4: Executive Summary

   For personal use only 01 Executive Summary © MACQUARIE 2019

5. Slide 5: Overview – capital raising and outlook update

   Macquarie I Capital raising and outlook update I macquarie.com Executive Summary Outlook update Capital Position Offer Appendix A – 1Q20 Update Appendix B – Key Risks Overview – capital raising and outlook update For personal use only Capital raising follows a period of increased capital usage, prim

6. Slide 6: Outlook update

   For personal use only 02 Outlook update © MACQUARIE 2019

7. Slide 7: Factors impacting FY20 short-term outlook

   Macquarie I Capital raising and outlook update I macquarie.com Executive Summary Outlook update Capital Position Offer Appendix A – 1Q20 Update Appendix B – Key Risks Factors impacting FY20 short-term outlook For personal use only Annuity-style businesses Markets-facing businesses Macquarie Asset Ma

8. Slide 8: Short-term outlook

   Macquarie I Capital raising and outlook update I macquarie.com Executive Summary Outlook update Capital Position Offer Appendix A – 1Q20 Update Appendix B – Key Risks For personal use only Short-term • While the impact of future market conditions makes forecasting difficult, we continue to expect th

9. Slide 9: Medium-term outlook

   Macquarie I Capital raising and outlook update I macquarie.com Executive Summary Outlook update Capital Position Offer Appendix A – 1Q20 Update Appendix B – Key Risks For personal use only Medium-term • Macquarie remains well positioned to deliver superior performance in the medium-term • Deep exper

10. Slide 10: Medium-term outlook by business

    Macquarie I Capital raising and outlook update I macquarie.com Executive Summary Outlook update Capital Position Offer Appendix A – 1Q20 Update Appendix B – Key Risks For personal use only Medium-term Annuity-style businesses Markets-facing businesses Macquarie Asset Management (MAM) Macquarie Capit

11. Slide 11: Capital position

    For personal use only 03 Capital position © MACQUARIE 2019

12. Slide 12: Capital update

    Macquarie I Capital raising and outlook update I macquarie.com Executive Summary Outlook update Capital Position Offer Appendix A – 1Q20 Update Appendix B – Key Risks For personal use only Capital update • Across FY18, FY19 and 1H20, Macquarie’s businesses will have used in excess of $A4b 1 of incre

13. Slide 13: Business capital requirements

    Macquarie I Capital raising and outlook update I macquarie.com Executive Summary Outlook update Capital Position Offer Appendix A – 1Q20 Update Appendix B – Key Risks Business capital requirements1 For personal use only Actual $A2.6b increase Anticipated ~$A1.6b increase FY18 to 1Q20 over 2Q20 1H20

14. Slide 14: Regulatory update

    Macquarie I Capital raising and outlook update I macquarie.com Executive Summary Outlook update Capital Position Offer Appendix A – 1Q20 Update Appendix B – Key Risks For personal use only Regulatory Regulatory update • APRA is currently undertaking regulatory reviews in a number of areas, including

15. Slide 15: Regulatory update – Brexit

    Macquarie I Capital raising and outlook update I macquarie.com Executive Summary Outlook update Capital Position Offer Appendix A – 1Q20 Update Appendix B – Key Risks For personal use only Regulatory Brexit • As previously stated, Macquarie does not believe that the UK’s withdrawal from the European

16. Slide 16: Offer

    For personal use only 04 Offer © MACQUARIE 2019

17. Slide 17: Overview and use of funds

    Macquarie I Capital raising and outlook update I macquarie.com Executive Summary Outlook update Capital Position Offer Appendix A – 1Q20 Update Appendix B – Key Risks Overview and use of funds For personal use only Macquarie is seeking to raise $A1b in the form of a non-underwritten Institutional Pl

18. Slide 18: Key details of Offer

    Macquarie I Capital raising and outlook update I macquarie.com Executive Summary Outlook update Capital Position Offer Appendix A – 1Q20 Update Appendix B – Key Risks Key details of Offer For personal use only NOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES Structure and size ⚫ Non-underwritten

19. Slide 19: Offer timetable

    Macquarie I Capital raising and outlook update I macquarie.com Executive Summary Outlook update Capital Position Offer Appendix A – 1Q20 Update Appendix B – Key Risks Offer timetable For personal use only NOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES Event Date (Sydney time) Record date for S

20. Slide 20: Appendix A – 1Q20 Update

    For personal use only 05 Appendix A 1Q20 Update © MACQUARIE 2019

21. Slide 21: 1Q20 overview

    Macquarie I Capital raising and outlook update I macquarie.com Executive Summary Outlook update Capital Position Offer Appendix A – 1Q20 Update Appendix B – Key Risks For personal use only • Satisfactory trading conditions with 1Q20 operating group contribution broadly in line with 1Q20 the prior co

22. Slide 22: 1Q20 annuity-style businesses

    Macquarie I Capital raising and outlook update I macquarie.com Executive Summary Outlook update Capital Position Offer Appendix A – 1Q20 Update Appendix B – Key Risks For personal use only 1Q20 Macquarie Asset Management Corporate and Asset Finance Banking and Financial Services 24% FY19 contributio

23. Slide 23: 1Q20 markets-facing businesses

    Macquarie I Capital raising and outlook update I macquarie.com Executive Summary Outlook update Capital Position Offer Appendix A – 1Q20 Update Appendix B – Key Risks For personal use only 1Q20 Commodities and Global Markets Macquarie Capital 25% FY19 contribution1 22% FY19 contribution1 • Strong co

24. Slide 24: Funded balance sheet remains strong

    Macquarie I Capital raising and outlook update I macquarie.com Executive Summary Outlook update Capital Position Offer Appendix A – 1Q20 Update Appendix B – Key Risks Funded balance sheet remains strong For personal use only Term liabilities exceed term assets 31 March 2018 31 March 2019 30 June 201

25. Slide 25: Operating groups update

    Macquarie I Capital raising and outlook update I macquarie.com Executive Summary Outlook update Capital Position Offer Appendix A – 1Q20 Update Appendix B – Key Risks For personal use only Operating Operating groups update • Effective 1 July 2019 groups – Certain fiduciary businesses, such as the in

26. Slide 26: Appendix B – Key Risks

    For personal use only 06 Appendix B Key Risks © MACQUARIE 2019

27. Slide 27: Appendix B: Key risks

    Macquarie I Capital raising and outlook update I macquarie.com Executive Summary Outlook update Capital Position Offer Appendix A – 1Q20 Update Appendix B – Key Risks Appendix B: Key risks For personal use only Risks Investors should be aware that there are risks associated with an investment in Mac

28. Slide 28: Appendix B: Key risks

    Macquarie I Capital raising and outlook update I macquarie.com Executive Summary Outlook update Capital Position Offer Appendix A – 1Q20 Update Appendix B – Key Risks Appendix B: Key risks For personal use only 2. Risks associated with Macquarie’s business that may affect ordinary shares of Macquari

29. Slide 29: Appendix B: Key risks

    Macquarie I Capital raising and outlook update I macquarie.com Executive Summary Outlook update Capital Position Offer Appendix A – 1Q20 Update Appendix B – Key Risks Appendix B: Key risks For personal use only Risk Description of risk Other general economic and Jurisdictions in which the Macquarie

30. Slide 30: Appendix B: Key risks

    Macquarie I Capital raising and outlook update I macquarie.com Executive Summary Outlook update Capital Position Offer Appendix A – 1Q20 Update Appendix B – Key Risks Appendix B: Key risks For personal use only Risk Description of risk Legal, regulatory and Changes to laws, regulations or policies,

31. Slide 31: Appendix B: Key risks

    Macquarie I Capital raising and outlook update I macquarie.com Executive Summary Outlook update Capital Position Offer Appendix A – 1Q20 Update Appendix B – Key Risks Appendix B: Key risks For personal use only Risk Description of risk Exchange rate risk While the Macquarie Group’s consolidated fina

32. Slide 32: Appendix B: Key risks

    Macquarie I Capital raising and outlook update I macquarie.com Executive Summary Outlook update Capital Position Offer Appendix A – 1Q20 Update Appendix B – Key Risks Appendix B: Key risks For personal use only Risk Description of risk Staff recruitment and Employees are the Macquarie Group’s most i

33. Slide 33: Appendix B: Key risks

    Macquarie I Capital raising and outlook update I macquarie.com Executive Summary Outlook update Capital Position Offer Appendix A – 1Q20 Update Appendix B – Key Risks Appendix B: Key risks For personal use only Risk Description of risk Credit ratings risk The credit ratings assigned to MGL and certa

34. Slide 34: Appendix B: Key risks

    Macquarie I Capital raising and outlook update I macquarie.com Executive Summary Outlook update Capital Position Offer Appendix A – 1Q20 Update Appendix B – Key Risks Appendix B: Key risks For personal use only Risk Description of risk Information security system As cyber threats continue to evolve,

35. Slide 35: Appendix B: Risks associated with Ordinary Shares

    Macquarie I Capital raising and outlook update I macquarie.com Executive Summary Outlook update Capital Position Offer Appendix A – 1Q20 Update Appendix B – Key Risks Appendix B: Key risks For personal use only 3. Risks associated with Ordinary Shares specifically Risk Description of risk The market

36. Slide 36: International offer restrictions

    Macquarie I Capital raising and outlook update I macquarie.com Executive Summary Outlook update Capital Position Offer Appendix A – 1Q20 Update Appendix B – Key Risks Disclaimer For personal use only INTERNATIONAL OFFER RESTRICTIONS This document does not constitute an offer of Securities of the Com

37. Slide 37: Disclaimer

    Macquarie I Capital raising and outlook update I macquarie.com Executive Summary Outlook update Capital Position Offer Appendix A – 1Q20 Update Appendix B – Key Risks Disclaimer For personal use only China The information in this document does not constitute a public offer of the Securities, whether

38. Slide 38: Disclaimer

    Macquarie I Capital raising and outlook update I macquarie.com Executive Summary Outlook update Capital Position Offer Appendix A – 1Q20 Update Appendix B – Key Risks Disclaimer For personal use only New Zealand This document has not been registered, filed with or approved by any New Zealand regulat

39. Slide 39: Disclaimer

    Macquarie I Capital raising and outlook update I macquarie.com Executive Summary Outlook update Capital Position Offer Appendix A – 1Q20 Update Appendix B – Key Risks Disclaimer For personal use only United Arab Emirates Neither this document nor any securities relating to it have been approved, dis

40. Slide 40: Capital raising and outlook update

    Capital raising and outlook update For personal use only Presentation to Investors and Analysts 28 August 2019 Shemara Wikramanayake Chief Executive Officer Alex Harvey Chief Financial Officer NOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES

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