Macquarie Group, Ltd. · ASX:MQG
Macquarie — Investor Day (March 2023)
69 slides from Macquarie's investor day presentation, Mar 9, 2023
Slide 1: Macquarie Group Limited, Americas Investor Tour
Macquarie Group Limited, Americas Investor Tour Day 3, Houston 9 March 2023 Image credit: Michael Baker International (MBI) © Macquarie Group Limited 1
Slide 2: Disclaimer
Disclaimer This information has been prepared on a strictly confidential basis by Macquarie Group Limited ABN 94 122 169 279 (“MGL”) and may neither be reproduced in whole nor in part, nor may any of its contents be divulged, to any third party without the prior written consent of MGL. Information i
Slide 3: Commodities and Global Markets
01 Image here Commodities and Global Markets Nicholas O’Kane
Slide 4: What we do
Overview North America Power, Gas and Emissions Agriculture and Oil Energy Transition Americas Fixed Income and Currencies Q&A Conclusion Glossary What we do CGM is a global client focused business offering a broad range of services to its diverse client base Commodities Financial Markets Asset Fina
Slide 5: Who we are
Overview North America Power, Gas and Emissions Agriculture and Oil Energy Transition Americas Fixed Income and Currencies Q&A Conclusion Glossary Who we are Diverse team Our clients have access to a global network of 2,3091 specialist staff across 42 locations, that provide a unique combination of
Slide 6: Client-led business
Overview North America Power, Gas and Emissions Agriculture and Oil Energy Transition Americas Fixed Income and Currencies Q&A Conclusion Glossary Client-led business 40+ years Deep understanding of evolving client needs, of client partnerships evolving into niche activities in some markets, and sca
Slide 7: Delivering on our strategy
Overview North America Power, Gas and Emissions Agriculture and Oil Energy Transition Americas Fixed Income and Currencies Q&A Conclusion Glossary Delivering on our strategy 2020 Operational Briefing 2023 update Opportunities we see Commodities Financial Markets Asset Finance Expanding into new ma
Slide 8: We are diversified
Overview North America Power, Gas and Emissions Agriculture and Oil Energy Transition Americas Fixed Income and Currencies Q&A Conclusion Glossary We are diversified Diversity by business1 Diversity by region1 • Mobility, Energy, Renewables and Sustainability • Technology, Media and Telecoms • Other
Slide 9: Strong performance
Overview North America Power, Gas and Emissions Agriculture and Oil Energy Transition Americas Fixed Income and Currencies Q&A Conclusion Glossary Strong performance 3Q23 update Majority of income derived from underlying client business ● Exceptionally strong results across the commodities platform,
Slide 10: Risk management is core
Overview North America Power, Gas and Emissions Agriculture and Oil Energy Transition Americas Fixed Income and Currencies Q&A Conclusion Glossary Risk management is core Strong focus on business accountability and risk ownership Stable and robust core risk management principles - supported by our l
Slide 11: Regulatory capital and trading revenue
Overview North America Power, Gas and Emissions Agriculture and Oil Energy Transition Americas Fixed Income and Currencies Q&A Conclusion Glossary Regulatory capital and trading revenue Underlying client activity driving regulatory capital and trading revenues Regulatory capital (normalised)1 Group
Slide 12: CGM in Americas
Overview North America Power, Gas and Emissions Agriculture and Oil Energy Transition Americas Fixed Income and Currencies Q&A Conclusion Glossary CGM in Americas Active across all three businesses: Percentage of total CGM Commodities: operating income1 632 ● Full service offering to clients with ex
Slide 13: Over 30 years of growth, innovation and collaboration in the Americas
Overview North America Power, Gas and Emissions Agriculture and Oil Energy Transition Americas Fixed Income and Currencies Q&A Conclusion Glossary Over 30 years of growth, innovation and collaboration in the Americas Key Global Carbon Business Recent highlights Platform Acquisition Acquisition of So
Slide 14: Opportunities for continued growth
Overview North America Power, Gas and Emissions Agriculture and Oil Energy Transition Americas Fixed Income and Currencies Q&A Conclusion Glossary Opportunities for continued growth Case study: Cargill North America Power and Gas trading businesses acquisition in 2017 Acquisition outcomes: Acquisiti
Slide 15: Opportunity in the Americas
Overview North America Power, Gas and Emissions Agriculture and Oil Energy Transition Americas Fixed Income and Currencies Q&A Conclusion Glossary Opportunity in the Americas Runway for continued growth Size of market CGM share Average daily natural gas demand – North America1 Average daily natural
Slide 16: Today's roadmap
Overview North America Power, Gas and Emissions Agriculture and Oil Energy Transition Americas Fixed Income and Currencies Q&A Conclusion Glossary Today’s roadmap Our opportunities in the Americas Expanding expertise and Responding to long-term trends Continue to explore and invest presence into new
Slide 17: North America Power, Gas and Emissions
02 Image here North America Power, Gas and Emissions Tim Bourn
Slide 18: How we fit into the Commodities and Global Markets platform
Overview North America Power, Gas and Emissions Agriculture and Oil Energy Transition Americas Fixed Income and Currencies Q&A Conclusion Glossary How we fit into the Commodities and Global Markets platform Our part of the value chain Capital and financing Market access Providing clients with financ
Slide 19: Platform evolved through organic growth and key acquisitions
Overview North America Power, Gas and Emissions Agriculture and Oil Energy Transition Americas Fixed Income and Currencies Q&A Conclusion Glossary Platform evolved through a combination of organic growth and key acquisitions Continuity and dedication of our people 18 years of consistent returns 19+
Slide 20: Platform evolved through organic growth and key acquisitions
Overview North America Power, Gas and Emissions Agriculture and Oil Energy Transition Americas Fixed Income and Currencies Q&A Conclusion Glossary Platform evolved through a combination of organic growth and key acquisitions Continuity and dedication of our people Cook Inlet provided key access to t
Slide 21: Platform evolved through organic growth and key acquisitions
Overview North America Power, Gas and Emissions Agriculture and Oil Energy Transition Americas Fixed Income and Currencies Q&A Conclusion Glossary Platform evolved through a combination of organic growth and key acquisitions Continuity and dedication of our people Macquarie entered the power markets
Slide 22: Platform evolved through organic growth and key acquisitions
Overview North America Power, Gas and Emissions Agriculture and Oil Energy Transition Americas Fixed Income and Currencies Q&A Conclusion Glossary Platform evolved through a combination of organic growth and key acquisitions Continuity and dedication of our people In 2009 Constellation brought addit
Slide 23: Platform evolved through organic growth and key acquisitions
Overview North America Power, Gas and Emissions Agriculture and Oil Energy Transition Americas Fixed Income and Currencies Q&A Conclusion Glossary Platform evolved through a combination of organic growth and key acquisitions Continuity and dedication of our people Cargill enhanced our power operatio
Slide 24: Business platform starts with client activity
Overview North America Power, Gas and Emissions Agriculture and Oil Energy Transition Americas Fixed Income and Currencies Q&A Conclusion Glossary Business platform starts with client activity Diverse customer transactions Structured an unique transaction providing natural gas producers diversificat
Slide 25: Logistics expertise enhances the model
Overview North America Power, Gas and Emissions Agriculture and Oil Energy Transition Americas Fixed Income and Currencies Q&A Conclusion Glossary Logistics expertise enhances the model Gives us valuable insight into supply/demand fundamentals and market dynamics 11 Bcf/day Actively trades with Macq
Slide 26: Macquarie is a leader in moving physical power across North America
Overview North America Power, Gas and Emissions Agriculture and Oil Energy Transition Americas Fixed Income and Currencies Q&A Conclusion Glossary Macquarie is a leader in moving physical power across North America As with natural gas, logistics expertise gives us the ability to optimise the portfol
Slide 27: We then trade and optimise the portfolio
Overview North America Power, Gas and Emissions Agriculture and Oil Energy Transition Americas Fixed Income and Currencies Q&A Conclusion Glossary We then trade and optimise the portfolio Largely focused on spread risk ● Locational spreads Starts with our fundamentals, knowledge base and logistics ●
Slide 28: Power and Gas markets continue to see increased volatility
Overview North America Power, Gas and Emissions Agriculture and Oil Energy Transition Americas Fixed Income and Currencies Q&A Conclusion Glossary Power and Gas markets continue to see increased volatility due to a variety of reasons We manage our risk anticipating unique events Globalisation Infras
Slide 29: Many factors creating volatility in natural gas
Overview North America Power, Gas and Emissions Agriculture and Oil Energy Transition Americas Fixed Income and Currencies Q&A Conclusion Glossary Many factors creating volatility in natural gas Production basins, infrastructure and consumption patterns are all rapidly shifting 35 Bcf/day mi Miles o
Slide 30: Power is also seeing significant volatility
Overview North America Power, Gas and Emissions Agriculture and Oil Energy Transition Americas Fixed Income and Currencies Q&A Conclusion Glossary Power is also seeing significant volatility Energy transition will continue to create opportunities 23 Years US capacity-weighted average fleet age by fu
Slide 31: Weather variability continues to provide demand for our services
Overview North America Power, Gas and Emissions Agriculture and Oil Energy Transition Americas Fixed Income and Currencies Q&A Conclusion Glossary Weather variability continues to provide demand for our services We specialise in the ability to move power and gas to where it is needed 2015-16: 2254 G
Slide 32: Natural Gas is increasingly global due to LNG production in the US
Overview North America Power, Gas and Emissions Agriculture and Oil Energy Transition Americas Fixed Income and Currencies Q&A Conclusion Glossary Natural Gas is increasingly global due to significant increases in LNG production in the US LNG Exports by Country1 2018 2028 In 2023, the US will Canada
Slide 33: What's next
Overview North America Power, Gas and Emissions Agriculture and Oil Energy Transition Americas Fixed Income and Currencies Q&A Conclusion Glossary What’s next Continuing to explore Expanding our Responding to and develop emerging capabilities opportunities and opportunities into new markets challeng
Slide 34: Agriculture and Oil
03 Image here Agriculture and Oil Dan Vizel David Hochberg
Slide 35: Our services in the Commodities and Global Markets platform
Overview North America Power, Gas and Emissions Agriculture and Oil Energy Transition Americas Fixed Income and Currencies Q&A Conclusion Glossary Our services in the Commodities and Global Markets platform Bringing capital, risk management, market access and logistics services to clients with expos
Slide 36: Deep expertise in physical and financial markets
Overview North America Power, Gas and Emissions Agriculture and Oil Energy Transition Americas Fixed Income and Currencies Q&A Conclusion Glossary Deep expertise in physical and Continuity and dedication of financial markets our people Global footprint drives opportunities 175+ 16+ years average ten
Slide 37: Our evolution derives from organic growth with some key acquisitions
Overview North America Power, Gas and Emissions Agriculture and Oil Energy Transition Americas Fixed Income and Currencies Q&A Conclusion Glossary Our evolution derives from organic growth with some key acquisitions A growthStory A Growth story1 FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18
Slide 38: We offer a diverse range of services across a broad range of products
Overview North America Power, Gas and Emissions Agriculture and Oil Energy Transition Americas Fixed Income and Currencies Q&A Conclusion Glossary We offer a diverse range of services across a broad range of products Risk Management Capital and Financing Physical execution and logistics ● Client fam
Slide 39: We are a client focused business
Overview North America Power, Gas and Emissions Agriculture and Oil Energy Transition Americas Fixed Income and Currencies Q&A Conclusion Glossary We are a client focused business Transacting with 500+ clients in over 60 countries and sectors with 150% growth in clients since FY17 Refiners Packaging
Slide 40: Risk management is core
Overview North America Power, Gas and Emissions Agriculture and Oil Energy Transition Americas Fixed Income and Currencies Q&A Conclusion Glossary Risk management is core There are several risks inherent to our business which we actively manage Credit risk Market risk Operational risk Compliance ris
Slide 41: We utilise our expertise to structure deals for our clients
Overview North America Power, Gas and Emissions Agriculture and Oil Energy Transition Americas Fixed Income and Currencies Q&A Conclusion Glossary We utilise our expertise to structure deals for our clients Case study: Crude prepay in US Gulf Coast with hedging and offtake ● Participating in the fin
Slide 42: Continued oil market disruption
Overview North America Power, Gas and Emissions Agriculture and Oil Energy Transition Americas Fixed Income and Currencies Q&A Conclusion Glossary Continued oil market disruption Future petroleum demand will look very different Demand for some fuels will grow for Demand for some fuels will begin to
Slide 43: CGM is well placed to support clients through market disruption
Overview North America Power, Gas and Emissions Agriculture and Oil Energy Transition Americas Fixed Income and Currencies Q&A Conclusion Glossary CGM is well placed to support clients and help them navigate this market disruption Our financial and physical expertise in the market help us support ou
Slide 44: Supporting clients in the clean fuels industry
Overview North America Power, Gas and Emissions Agriculture and Oil Energy Transition Americas Fixed Income and Currencies Q&A Conclusion Glossary Supporting clients in the clean fuels industry Opportunity ● An industrial project to develop a multi-billion dollar low carbon blue and green methanol p
Slide 45: Energy Transition
04 Image here Energy Transition Janet Dietrich Nick Gole
Slide 46: Macquarie's role in the global transition to net zero
Overview North America Power, Gas and Emissions Agriculture and Oil Energy Transition Americas Fixed Income and Currencies Q&A Conclusion Glossary Macquarie's role in the global We are driving climate action in transition to net zero four key areas Delivering practical climate solutions and building
Slide 47: Bringing the whole of Macquarie to the Energy Transition
Overview North America Power, Gas and Emissions Agriculture and Oil Energy Transition Americas Fixed Income and Currencies Q&A Conclusion Glossary Bringing the whole of Macquarie to the Energy Transition The scale and breadth of the Energy Transition opportunity is driving collaboration between our
Slide 48: The Energy Transition is a large, accelerating and long-term opportunity
Overview North America Power, Gas and Emissions Agriculture and Oil Energy Transition Americas Fixed Income and Currencies Q&A Conclusion Glossary The Energy Transition is a large, accelerating and long-term opportunity Large opportunity Policy support Global Energy Transition investment exceeded $U
Slide 49: Energy Transition has impact across all of CGM
Overview North America Power, Gas and Emissions Agriculture and Oil Energy Transition Americas Fixed Income and Currencies Q&A Conclusion Glossary Energy Transition has impact CGM is very active in the global across all of CGM transition, building on our history of anticipating and adapting to the A
Slide 50: Emerging opportunities are driving our focus across 7 key sectors
Overview North America Power, Gas and Emissions Agriculture and Oil Energy Transition Americas Fixed Income and Currencies Q&A Conclusion Glossary Emerging opportunities are driving our focus across 7 key sectors We deliver solutions to support clients’ varying Energy Transition needs Key sectors Ca
Slide 51: CGM financing and execution case studies
Overview North America Power, Gas and Emissions Agriculture and Oil Energy Transition Americas Fixed Income and Currencies Q&A Conclusion Glossary CGM financing and execution case studies CGM is focused on delivering outcomes 1 2 Terrafame Pacific Canbriam Energy Macquarie supported Terrafame’s Macq
Slide 52: Macquarie Capital is helping clients navigate the Energy Transition
Overview North America Power, Gas and Emissions Agriculture and Oil Energy Transition Americas Fixed Income and Currencies Q&A Conclusion Glossary Macquarie Capital is helping clients navigate the Energy Transition As an adviser, partner, developer, and investor Macquarie Capital brings a range of t
Slide 53: Differentiated offering addressing Energy Transition megatrends
Overview North America Power, Gas and Emissions Agriculture and Oil Energy Transition Americas Fixed Income and Currencies Q&A Conclusion Glossary Differentiated offering addressing Energy Transition megatrends Clear mandate coupled with thoughtful opportunity selection and approach Key drivers for
Slide 54: Macquarie Capital investment and advisory case studies
Overview North America Power, Gas and Emissions Agriculture and Oil Energy Transition Americas Fixed Income and Currencies Q&A Conclusion Glossary Macquarie Capital investment and advisory case studies Macquarie Capital is focused on delivering outcomes 1 2 Aerogy Form Energy Newly launched renewabl
Slide 55: Americas Fixed Income and Currencies
05 Image here Americas Fixed Income and Currencies Glenn Edelson
Slide 56: What is FIC
Overview North America Power, Gas and Emissions Agriculture and Oil Energy Transition Americas Fixed Income and Currencies Q&A Conclusion Glossary What is FIC FIC brings together complementary business lines across three core competencies: FX Rates Fund Finance Client driven business with 250+ count
Slide 57: FIC Americas overview
Overview North America Power, Gas and Emissions Agriculture and Oil Energy Transition Americas Fixed Income and Currencies Q&A Conclusion Glossary FIC Americas overview FX and Rates Client Hedging Servicing clients across the value chain 25 professionals dedicated to FX and Rates hedging 14+ years a
Slide 58: Evolution of FIC Americas
Overview North America Power, Gas and Emissions Agriculture and Oil Energy Transition Americas Fixed Income and Currencies Q&A Conclusion Glossary Evolution of FIC Americas Launched Portfolio 500+ funds1 Company hedging FIC New York onboarded solutions leverage 50+ private location opened 5 private
Slide 59: Growing client franchise
Overview North America Power, Gas and Emissions Agriculture and Oil Energy Transition Americas Fixed Income and Currencies Q&A Conclusion Glossary Growing client franchise Private Funds AUM growth provides ongoing opportunities for Macquarie to gain market share and continue developing the franchise
Slide 60: FIC client revenue breakdown
Overview North America Power, Gas and Emissions Agriculture and Oil Energy Transition Americas Fixed Income and Currencies Q&A Conclusion Glossary FIC client revenue breakdown FIC has seen revenue growth globally and the Americas accounts for an increasing share FIC Global – Historical Revenue Contr
Slide 61: Case Study – Carlyle
Overview North America Power, Gas and Emissions Agriculture and Oil Energy Transition Americas Fixed Income and Currencies Q&A Conclusion Glossary Case Study – Carlyle Growth of active Carlyle funds trading with FIC Americas No. of Funds 13 Timeline Summary ● Carlyle is an asset manager with $US400b
Slide 62: Growth opportunities in FIC Americas – Fund Finance
Overview North America Power, Gas and Emissions Agriculture and Oil Energy Transition Americas Fixed Income and Currencies Q&A Conclusion Glossary Growth opportunities in FIC Americas – Fund Finance Aligning our Fund Finance and derivatives hedging business has allowed us to broaden our product offe
Slide 63: Looking forward - growth opportunities in FIC Americas
Overview North America Power, Gas and Emissions Agriculture and Oil Energy Transition Americas Fixed Income and Currencies Q&A Conclusion Glossary Looking forward - growth opportunities in FIC Americas We continue to explore adjacent business lines to grow the FIC Americas franchise. This includes a
Slide 64: Closing & Q&A
06 Image here Closing & Q&A Nicholas O’Kane
Slide 65: What's next for CGM in the Americas
Overview North America Power, Gas and Emissions Agriculture and Oil Energy Transition Americas Fixed Income and Currencies Q&A Conclusion Glossary What's next for CGM in the Americas Expanding expertise and presence into new markets ● Continue providing services to our clients to help them navigate
Slide 66: Glossary
08 Image here Glossary Image credit: Michael Baker International (MBI) Image credit: Michael Baker International (MBI)
Slide 67: Glossary
Overview North America Power, Gas and Emissions Agriculture and Oil Energy Transition Americas Fixed Income and Currencies Q&A Conclusion Glossary Glossary $A / AUD Australian Dollar CO2 Carbon Dioxide $US / USD United States Dollar CY Calendar Year £ / GBP Pound Sterling DCM Debt Capital Markets €
Slide 68: Glossary
Overview North America Power, Gas and Emissions Agriculture and Oil Energy Transition Americas Fixed Income and Currencies Q&A Conclusion Glossary Glossary G10 Group of Ten NOI Net operating income GDP Gross Domestic Product NPAT Net Profit After Tax GFC Global Financial Crisis NPC Net Profit Contri
Slide 69: Macquarie Group Limited, Americas Investor Tour
Macquarie Group Limited, Americas Investor Tour Day 3, Houston 9 March 2023 Image credit: Michael Baker International (MBI) © Macquarie Group Limited 69