Macquarie Group, Ltd. · ASX:MQG
Macquarie — Shareholder Meeting (July 2015)
41 slides from Macquarie's shareholder meeting presentation, Jul 23, 2015
Slide 1: Macquarie Group Limited 2015 Annual General Meeting
For personal use only Macquarie Group Limited 2015 Annual General Meeting 23 July 2015
Slide 2: Disclaimer
Disclaimer For personal use only 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 summary form and
Slide 3: FY15 Overview
For personal use only FY15 Overview Kevin McCann AM Chairman
Slide 4: Global financial market conditions
Global financial market conditions For personal use only This time last year we had seen a continued improvement in global market conditions. While client activity remained subdued for certain parts of Macquarie's capital markets facing businesses, all operating groups achieved improved performanc
Slide 5: Financial performance
Financial performance For personal use only 1H15 and 2H15 profit both up on pcp FY15 Operating income of $A9,293m FY15 Profit of $A1,604m $Am FY15 up 14% on FY14 $Am FY15 up 27% on FY14 6,000 2H15 up 16% on 1H15 1,000 2H15 up 37% on 1H15 5,000 750 4,000 500 3,000 250 2,000 0 1H14 2H14 1H15 2H15 1H14
Slide 6: FY15 dividend
FY15 dividend For personal use only FY15 ordinary dividend of $A3.30, 68% payout ratio, up on FY14 ordinary dividend of $A2.60 – 2H15 ordinary dividend of $A2.00, 40% franked – 1H15 ordinary dividend of $A1.30, 40% franked Dividend policy remains 60-80% annual payout ratio PAGE 6
Slide 7: Years of profitability
46 years of profitability For personal use only yrs $Ab 2.0 1.8 $A1,604m 1.6 27% on FY14 1.4 1.2 1.0 0.8 0.6 0.4 0.2 0 PAGE 7
Slide 8: Macquarie's total shareholder return outperforms global peers
Macquarie’s total shareholder return outperforms global peers For personal use only Rebased to 30 Jun 05 Total shareholder return 250 Macquarie Average international investment banks1 200 150 100 50 0 Jun-05 Jun-06 Jun-07 Jun-08 Jun-09 Jun-10 Jun-11 Jun-12 Jun-13 Jun-14 Jun-15 This chart represents
Slide 9: Total shareholder return continues to outperform global capital markets firms
Macquarie’s total shareholder return continues to outperform global capital markets firms For personal use only • Since the GFC, Macquarie has outperformed the MSCI World Capital Markets Index by 78%1 Rebased to 1 Aug 07 160 Total shareholder return 140 Macquarie (+52%) MSCI World Capital Markets In
Slide 10: Compliance and regulatory change
Compliance and regulatory change For personal use only The industry is seeing a continuing increase in regulatory initiatives, resulting in increased compliance requirements across all levels of the organisation Macquarie is regulated by approx. 190 authorities in 28 jurisdictions Our direct c
Slide 11: Macquarie Group Foundation
Macquarie Group Foundation For personal use only SYDNEY NEW YORK $A24.2m donated by staff and Foundation in FY15 $A240+ million contributed since inception LONDON HONG KONG 1,300+ organisations supported globally in FY15 33,500 hours or 4,100+ days volunteered
Slide 12: Overview of the Result for the year ended March 2015
For personal use only Overview of the Result for the year ended 31 March 2015 Nicholas Moore Managing Director and Chief Executive Officer
Slide 13: FY15 result
FY15 result For personal use only FY15 vs FY14 2H15 vs 1H15 Operating income $A9.3b 14% $A5.0b 16% Operating profit before tax $A2.5b 20% $A1.4b 25% Profit $A1,604m 27% $A926m 37% Earnings per share $A5.02 31% $A2.88 35% Dividends per share1 $A3.30 27% $A2.00 54% Return on Equity 14.0% from 11.1% 15
Slide 14: FY15 result reflected the return on many years of investment
FY15 result reflected the return on many years of investment across the business For personal use only Macquarie’s annuity-style businesses (Macquarie Asset Management, Corporate and Asset Finance, and Banking and Financial Services) continued to perform well with FY15 combined net profit contribu
Slide 15: Diversification by region
Diversification by region International income 70% of total income1 For personal use only Total staff 14,085; International staff 54% of total Europe, Middle East & Africa Asia Americas Income: $A2,013m (22% of total) Income: $A1,131m (12% of total) Income: $A3,338m (36% of total) Staff: 1,329 Staff
Slide 16: Macquarie Asset Management
Macquarie Asset Management For personal use only Net profit1 $A1.4b 38% Operating income Assets under management Performance fees 2.4b 484b 667m $A $A $A 27% 14% 207% AWARDS2 FY15 Autoroutes Paris-Rhin-Rhône, France 1. This represents net profit contribution which is management accounting profit bef
Slide 17: Corporate and Asset Finance
Corporate and Asset Finance For personal use only Net profit1 $A1.1b 35% Operating income Asset and loan portfolio Growing portfolio 28.7b $A $A 1.6b Billions 20 FY09 ($A) FY15 ($A) 15 32% 13% 10 8.8 11.0 4.2 4.0 5 1.4 0.2 1.0 0.3 0 Energy Aviation Macquarie Lending Leasing Leasing 1. This represent
Slide 18: Banking and Financial Services
Banking and Financial Services For personal use only Net profit1 $A285m 10% Personal Banking Wealth Management Business Banking Mortgages portfolio, representing 1.7% FUA Wealth Management Business Banking loan of the Australian mortgage market platform portfolio 24.5b 44% 48.0b 19% 5.2b $A $A $A 27
Slide 19: Business mix
Business mix For personal use only Capital markets facing businesses Annuity-style businesses Net profit contribution ($Ab) 5.0 4.0 1.3 3.0 3.0 2.0 1.0 2.8 1.0 1.2 0.9 0.0 FY07 FY11 FY15 Comparative figures have been restated to conform to changes in current year financial presentation and group res
Slide 20: Macquarie Securities Group
Macquarie Securities Group For personal use only Net profit1 $A64m from FY14 $A107m Operating income Top ranked global research Launched Malaysian structured warrants 918m $A No. No. Australian Asian 1 1 No. IPOs2 execution3 market 6% 1 share4 FY15 AWARDS The Trade Asia Quamnet Peter Lee Associates
Slide 21: Macquarie Capital
Macquarie Capital For personal use only Net profit1 $A430m 54% Operating income Transaction value No. in Australia 1 $A $A 1.1b 141b M&A for announced and completed deals2 IPOs by number and value3 29% 50% FY15 AWARDS & DEALS $US11.0b Freeport LNG: North American Oil & Gas, Global Overall Deal of th
Slide 22: Commodities and Financial Markets
Commodities and Financial Markets For personal use only Net profit1 $A835m 15% Operating income Provided No. ASX24 Futures2 1.8b 2 Brent Crude development capital $A forecasting3 No. Physical gas 9% 3 marketer in North America4 AWARDS5 FY15 No. No. 1 Commodity House of the Year 2014 1 Excellence in
Slide 23: Business backed by strong funding and capital
Business backed by strong funding and capital For personal use only MGL funded balance sheet APRA Basel III surplus capital2 Credit ratings 31 March 2015 31 March 2015 $Ab 120 110 Short 100 Term1 Cash 90 80 Retail $A2.7b 70 Deposits Trading & 60 Short Term 50 40 24 years 19 years 23 years 4 30 2 2 T
Slide 24: 1Q16 Update
For personal use only 1Q16 Update Nicholas Moore Managing Director and Chief Executive Officer
Slide 25: 1Q16 Macquarie Update
1Q16 Macquarie Update For personal use only • Both Annuity-style businesses’ and Capital markets facing businesses’ 1Q16 contributions1 up significantly on pcp (1Q15) and broadly in line with the prior quarter (4Q15): – Annuity-style businesses2 – driven by the underlying growth of the businesses, a
Slide 26: Annuity-Style Businesses 1Q16 Update
Annuity-Style Businesses For personal use only 1Q16 Update Macquarie • AUM of $A477.4b, broadly in line with Mar 15 - positive net flows in MIM offset by FX, market movements and net Asset divestments in MIRA Management • Performance fees of $A208m, predominantly from Macquarie Infrastructure Compan
Slide 27: Capital Markets Facing Businesses 1Q16 Update
Capital Markets Facing Businesses For personal use only 1Q16 Update Macquarie • Market conditions characterised by increased volumes and volatility, particularly in Asia where the liberalisation of Securities China’s capital markets and credit easing resulted in significant increases in client activ
Slide 28: Funded balance sheet remains strong
Funded balance sheet remains strong For personal use only $Ab 31 March 2014 $Ab 31 March 2015 $Ab 30 June 2015 120 14 120 120 110 ST wholesale issued paper 110 ST wholesale issued paper 110 (11% ) (11% ) 100 100 100 Other debt maturing in the next 12 Cash, liquids and self securitised Other debt mat
Slide 29: Basel III capital position
Basel III capital position For personal use only • APRA Basel III Group capital at Jun 15 of $A15.8b, Group surplus of $A2.4b (1 Jan 16 requirements1) • Bank Group APRA Basel III CET1 ratio: 9.9%; Tier 1 ratio: 11.2% • Bank Group Harmonised Basel III CET1 ratio: 11.5%; Tier 1 ratio: 12.7%2 • As prev
Slide 30: FY16 Outlook
For personal use only FY16 Outlook Nicholas Moore Managing Director and Chief Executive Officer
Slide 31: Short term outlook
Short term outlook For personal use only • Summarised below are the outlook statements for each Operating Group • FY16 results will vary with market conditions, particularly the capital markets facing businesses Net profit contribution FY08–FY15 FY08–FY15 FY16 outlook as announced Update to Operatin
Slide 32: Short term outlook
Short term outlook For personal use only While the impact of future market conditions makes forecasting difficult, we currently expect the FY16 combined net profit contribution1 from operating groups to be up on FY15 The FY16 tax rate is currently expected to be broadly in line with 2H15 and dow
Slide 33: Medium term
Medium term For personal use only Macquarie remains well positioned to deliver superior performance in the medium term Deep expertise in major markets Build on our strength in diversity and continue to adapt our portfolio mix to changing market conditions – Annuity-style income is provided by
Slide 34: Approximate business Basel III Capital & ROE
Approximate business Basel III Capital & ROE For personal use only As at 31 Mar 15 1 APRA Basel III Capital Approx. FY15 Return Approx. 9-Year average Return 2 Operating Group @ 8.5% ($Ab) on Ordinary Equity2 on Ordinary Equity Annuity-style businesses 7.5 Macquarie Asset Management 2.0 Corporate an
Slide 35: Appendix
For personal use only Appendix
Slide 36: Funded balance sheet reconciliation
Funded balance sheet reconciliation For personal use only The Group’s statement of financial position is prepared based on generally accepted accounting principles which do not represent actual funding requirements A funded balance sheet reconciliation has been prepared to reconcile the reported
Slide 37: Glossary
For personal use only Glossary
Slide 38: Glossary
Glossary For personal use only $A/AUD Australian Dollar B Billion $US/USD United States Dollar BCBS Basel Committee on Banking Supervision 1H14 Half Year ended 30 September 2013 BCN Bank Capital Notes 1H15 Half Year ended 30 September 2014 BFS Banking and Financial Services 1Q15 First Quarter ended
Slide 39: Glossary
Glossary For personal use only EMEA Europe, the Middle East and Africa MIM Macquarie Investment Management EPS Earnings Per Share MIRA Macquarie Infrastructure and Real Assets EUM Equity Under Management MPW Macquarie Private Wealth FUA Funds Under Administration MSCI Morgan Stanley Capital Internat
Slide 40: Glossary
Glossary For personal use only TSR Total Shareholder Return UK United Kingdom US United States of America VaR Value at Risk VIX CBOE Volatility Index VS Versus yr Year PAGE 40
Slide 41: Macquarie Group Limited 2015 Annual General Meeting
For personal use only Macquarie Group Limited 2015 Annual General Meeting 23 July 2015