Slide 1: 2024 Annual General Meeting Presentation to investors and analysts
2024 Annual Presentation to investors General andMeeting analysts Result announcement for the full year ended 31Macquarie March 2024 Group Limited 3 May 2024 25 July 2024 © Macquarie Group Limited 1
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
Slide 3: Agenda
Agenda 01 Chair’s Update 02 Overview of 03 1Q25 Update FY24 04 FY25 Outlook 05 Formal 06 Glossary Business © Macquarie Group Limited 3
Slide 4: Chair's Update
01 Chair's Update Glenn Stevens Introduction Chair Sam Dobson Head of Investor Relations © Macquarie Group Limited 4
Slide 5: Financial performance
Chair's Update Overview of FY24 1Q25 Update FY25 Outlook Formal Business Glossary Financial performance Operating income FY24 Profit FY24 $A16,887m $A3,522m $Am $Am 20,000 12 % 6,000 5,000 32 % 16,000 ON FY23 ON FY23 4,000 12,000 3,000 8,000 2,000 4,000 1,000 - - FY20 FY21 FY22 FY23 FY24 FY20 FY21 F
Slide 6: Final dividend
Chair's Update Overview of FY24 1Q25 Update FY25 Outlook Formal Business Glossary Final dividend 2H24 Ordinary Dividend FY24 Ordinary Dividend $A3.85 $A6.40 FROM FROM $A4.50 $A7.50 (40% franked) (40% franked) (40% franked) IN 2H23 (40% franked) IN FY23 2H24 Record Date Payout Ratio 14 May 24 DRP
Slide 7: Environmental, Social and Governance
Chair's Update Overview of FY24 1Q25 Update FY25 Outlook Formal Business Glossary Environmental, Macquarie recognises the importance of sound ESG practices as Social and part of our responsibility to shareholders, funders, clients, employees and the communities in which Macquarie operates Governance
Slide 8: Our purpose explains why we do business
Chair's Update Overview of FY24 1Q25 Update FY25 Outlook Formal Business Glossary Our purpose explains why we do business Empowering people to innovate and invest for a better future Enabled by three long-held principles that define how we do business Opportunity | Accountability | Integrity 8 © Mac
Slide 9: Risk culture
Chair's Update Overview of FY24 1Q25 Update FY25 Outlook Formal Business Glossary Risk culture A sound risk culture has been integral to Macquarie’s risk Risk Management Framework management framework Macquarie’s approach to risk management is based on stable and robust core risk management principl
Slide 10: Board elections
Chair's Update Overview of FY24 1Q25 Update FY25 Outlook Formal Business Glossary Board elections Directors seeking re-election to the Board Rebecca McGrath Mike Roche Glenn Stevens © Macquarie Group Limited 10
Slide 11: Overview of FY24
02 Overview of FY24 Shemara Wikramanayake Overview of Result Managing Director and Chief Executive Officer Shemara Wikramanayake Managing Director and Chief Executive Officer © Macquarie Group Limited 11
Slide 12: 55 years of unbroken profitability
Chair's Update Overview of FY24 1Q25 Update FY25 Outlook Formal Business Glossary 55 years of unbroken profitability $Ab Total Earnings Dividends ASX 200 MSCI World TSR % Performance shareholder per share per share Diversified Capital MSCI World 6.0 (ASX: MQG) return2 CAGR2 CAGR2 ASX 203 Financials3
Slide 13: FY24 result: $A3,522m down 32% on FY23
Chair's Update Overview of FY24 1Q25 Update FY25 Outlook Formal Business Glossary FY24 result: $A3,522m down 32% on FY23 2H24 1H24 2H24 v FY24 FY23 FY24 v $Am $Am 1H24 $Am $Am FY23 Net operating income 8,977 7,910 13% 16,887 19,122 12% Total operating expenses (6,142) (5,919) 4% (12,061) (12,1
Slide 14: FY24 net profit contribution from Operating Groups
Chair's Update Overview of FY24 1Q25 Update FY25 Outlook Formal Business Glossary FY24 net profit contribution from Operating Groups $A6,713m down 35% on FY23 Annuity-style activities Markets-facing activities $A3,014m 27% $A3,699m 40% ON FY23 ON FY23 Non-Banking Group Macquarie Asset Management
Slide 15: Diversification by region
Chair's Update Overview of FY24 1Q25 Update FY25 Outlook Formal Business Glossary Diversification by region International income 66% of total income1 Total staff2 20,666 of which 51% international. A further ~236,000 people employed across managed fund assets and investments3 Americas EMEA Asia Aust
Slide 16: Macquarie Asset Management
Chair's Update Overview of FY24 1Q25 Update FY25 Outlook Formal Business Glossary Macquarie Asset FY24 awards Private Public Management & rankings Markets Investments Investing to deliver positive impact for our clients, portfolio companies and communities $A370.9b 8% on Mar 23 $A567.4b 6% on Mar 23
Slide 17: Banking and Financial Services
Chair's Update Overview of FY24 1Q25 Update FY25 Outlook Formal Business Glossary Banking and FY24 awards $A119.3b 10% $A142.7b 10% Financial Services on Mar 23 on Mar 23 Home loan portfolio1 Total BFS deposits2 A technology-driven Australian retail bank and wealth manager $A15.8b 22% on Mar 23 $A4.
Slide 18: Commodities and Global Markets
Chair's Update Overview of FY24 1Q25 Update FY25 Outlook Formal Business Glossary Commodities and FY24 awards Strong underlying client business Global Markets & rankings Commodities Financial Global business offering capital and financing, risk management, market access, ~8.5 billion cubic feet Decr
Slide 19: Macquarie Capital
Chair's Update Overview of FY24 1Q25 Update FY25 Outlook Formal Business Glossary Macquarie Capital FY24 awards Investing in areas of deep expertise. During FY24, investments completed in sub-sectors across venture capital, growth equity, A global adviser, investor and developer, we & rankings infra
Slide 20: Approximate business Basel III Capital and ROE
Chair's Update Overview of FY24 1Q25 Update FY25 Outlook Formal Business Glossary Approximate business Basel III Capital and ROE 31 Mar 24 APRA Basel III Capital FY24 Return on Ordinary 18-year Average Return on Operating Group @ 10.5% ($Ab) Equity1 Ordinary Equity2 Annuity-style businesses 11.4 Mac
Slide 21: Business backed by strong funding and capital
Chair's Update Overview of FY24 1Q25 Update FY25 Outlook Formal Business Glossary Business backed by strong funding and capital MGL funded balance sheet1 APRA Basel III capital position Credit ratings 31 Mar 24 31 Mar 24 $Ab 350 Commercial paper and certificates of Group capital surplus7 deposit 9%
Slide 22: 1Q25 Update
03 1Q25 Update Shemara Wikramanayake Result Analysis and Managing Director and Chief Executive Officer Financial Management Alex Harvey Chief Financial Officer © Macquarie Group Limited 22
Slide 23: 1Q25 Overview
Chair's Update Overview of FY24 1Q25 Update FY25 Outlook Formal Business Glossary 1Q25 Overview Operating Group performance consistent with expectations. 1Q25 Operating Group contribution broadly in line with prior corresponding period (pcp) (1Q24) ● Macquarie’s annuity-style businesses’ (MAM and BF
Slide 24: 1Q25 Overview: Annuity-style businesses
Chair's Update Overview of FY24 1Q25 Update FY25 Outlook Formal Business Glossary 1Q25 Overview Annuity-style businesses Macquarie Asset Management Banking and Financial Services ~18% FY24 contribution1 ~19% FY24 contribution1 ● AUM2 of $A915.0b at Jun 24, down 2% on Mar 24 ● Home loan portfolio4 of
Slide 25: 1Q25 Overview: Markets-facing businesses
Chair's Update Overview of FY24 1Q25 Update FY25 Outlook Formal Business Glossary 1Q25 Overview Markets-facing businesses Commodities and Global Markets Macquarie Capital ~47% FY24 contribution1 ~16% FY24 contribution1 ● Commodities: performance up on pcp, largely driven by improved trading ● Fee an
Slide 26: Funded balance sheet remains strong
Chair's Update Overview of FY24 1Q25 Update FY25 Outlook Formal Business Glossary Funded balance sheet remains strong Term liabilities exceed term assets 31 Mar 24 30 Jun 24 $Ab $Ab 350 350 Commercial paper and certificates of deposit 9% Commercial paper and certificates of 300 Cash and liquid asset
Slide 27: Capital and liquidity update
Chair's Update Overview of FY24 1Q25 Update FY25 Outlook Formal Business Glossary Capital and liquidity update Group surplus and regulatory ratios at Jun 24 • Group capital surplus of $A8.2b1,2. Reduction in surplus of $A2.5b from Mar 24 predominantly driven by the 2H24 dividend, FY24 MEREP awards,
Slide 28: Business capital requirements
Chair's Update Overview of FY24 1Q25 Update FY25 Outlook Formal Business Glossary Business capital requirements1 1Q25 Key drivers MAM 1Q25 business capital requirement growth of $A0.9b excluding • Net movements in fund co- investments, underwrites and FX movements divestments $Ab BFS 30.0 0.6 $A29.2
Slide 29: Regulatory update
Chair's Update Overview of FY24 1Q25 Update FY25 Outlook Formal Business Glossary Regulatory update Australia APRA has finalised or is in the process of implementing changes to a number of prudential standards. Macquarie notes the following key updates: • On 8 Jul 24, APRA released its final revised
Slide 30: FY25 Outlook
04 FY25 Outlook Shemara Wikramanayake Outlook Managing Director and Chief Executive Officer Shemara Wikramanayake Managing Director and Chief Executive Officer © Macquarie Group Limited 30
Slide 31: Short-term outlook
Chair's Update Overview of FY24 1Q25 Update FY25 Outlook Formal Business Glossary Short-term outlook Factors impacting short-term outlook Annuity-style businesses Markets-facing businesses Non-Banking Group Macquarie Asset Management (MAM) Macquarie Capital (MacCap) ● Base fees expected to be broadl
Slide 32: Short-term outlook
Chair's Update Overview of FY24 1Q25 Update FY25 Outlook Formal Business Glossary Short-term outlook The range of factors that may influence our short-term outlook include: ● Market conditions including: global economic conditions, inflation and interest rates, significant volatility events, and the
Slide 33: Medium-term outlook
Chair's Update Overview of FY24 1Q25 Update FY25 Outlook Formal Business Glossary Medium-term outlook Macquarie remains well-positioned to deliver superior performance in the medium term with its diverse business mix across annuity-style and markets-facing businesses Deep expertise across diverse se
Slide 34: Medium-term outlook
Chair's Update Overview of FY24 1Q25 Update FY25 Outlook Formal Business Glossary Medium-term outlook Annuity-style businesses Markets-facing businesses Non-Banking Group Macquarie Asset Management (MAM) Macquarie Capital (MacCap) ● Well-positioned to respond to current market conditions and grow as
Slide 35: Appendix A: Detailed Result Commentary
05 Formal Business Glenn Stevens Appendix A Chair Detailed Result Commentary © Macquarie Group Limited 35
Slide 36: 2024 Annual General Meeting Presentation to investors and analysts
2024 Annual General Presentation Meeting to investors and analysts Macquarie Group Limited Result announcement for the full year ended 31 March 2023 25 July 2024 5 May 2023 © Macquarie Group Limited 36
Slide 37: Appendix D: Glossary
06 05 Glossary Appendix D Glossary © Macquarie Group Limited 37
Slide 38: Glossary
Chair's Update Overview of FY24 1Q25 Update FY25 Outlook Formal Business Glossary Glossary $A / AUD Australian Dollar CCyB Countercyclical Capital Buffer $US / USD United States Dollar CET1 Common Equity Tier 1 £ / GBP Pound Sterling CGM Commodities and Global Markets € / EUR Euro COG Corporate Oper
Slide 39: Glossary
Chair's Update Overview of FY24 1Q25 Update FY25 Outlook Formal Business Glossary Glossary IRRBB Interest Rate Risk in the Banking Book MPA Mortgage Professional Australia IFRS International Financial Reporting Standards MREP Macquarie Real Estate Partners IR Interest Rates MSCI Morgan Stanley Capit
Slide 40: 2024 Annual General Meeting Presentation to investors and analysts
2024 Annual General Presentation Meeting to investors and analysts Macquarie Group Limited Result announcement for the full year ended 31 March 2023 25 July 2024 5 May 2023 © Macquarie Group Limited 40