Macquarie Group, Ltd. · ASX:MQG
Macquarie — Non-Deal Roadshow (March 2023)
50 slides from Macquarie's roadshow presentation, Mar 8, 2023
Slide 1: Macquarie Group Limited, Americas Investor Tour
Macquarie Group Limited, Americas Investor Tour Day 2, New York 8 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: Macquarie Capital
01 Macquarie Capital Michael Silverton
Slide 4: Macquarie Capital
Overview Coverage Equities & Research Private Capital Principal Q&A Glossary Macquarie Capital Macquarie Capital combines specialist expertise, innovative advice and flexible capital solutions to help our clients and partners make opportunity reality Strategic advice at significant moments for clien
Slide 5: Regional focus with global connectivity
Overview Coverage Equities & Research Private Capital Principal Q&A Glossary Regional focus with global connectivity Driven by our specialist teams on the ground, we maintain a regional focus while leveraging our global capabilities to connect clients to global capital markets AMERICAS Diverse team
Slide 6: Macquarie Capital in the Americas
Overview Coverage Equities & Research Private Capital Principal Q&A Glossary Macquarie Capital in the 442 Regional presence since staff2 1994 Americas 74 $A2.0b+ deals completed in principal investments FY23 YTD1 made in FY23 YTD3 Sectors United States Brazil Boston Sao Paulo Infrastructure, real as
Slide 7: Capabilities
Overview Coverage Equities & Research Private Capital Principal Q&A Glossary More than two decades of embracing our role as an innovation engine for the Macquarie Group Recent highlights from FY23 Financial adviser to ECI Partners Financial adviser to Churchill Expanded our sector coverage in Provid
Slide 8: Opportunity of scale in the Americas
Overview Coverage Equities & Research Private Capital Principal Q&A Glossary Opportunity of scale in the Americas Strong market fundamentals and local government investment support position Macquarie Capital for substantial growth across our coverage, capital markets and principal activities Substan
Slide 9: Our approach in the Americas
Overview Coverage Equities & Research Private Capital Principal Q&A Glossary Our approach in We’ve evolved Macquarie Capital in the Americas over the past 10 years, becoming sector specialists Telecom, Media, the Americas Financial Entertainment & Consumer, Critical Minerals Institutions Technology
Slide 10: Growing in line with our strategy
Overview Coverage Equities & Research Private Capital Principal Q&A Glossary Growing in line with our strategy Our concentrated strategy on private capital and sectors of expertise is driving fee revenue growth in the Americas Americas increasing share Relationships with financial Our focus on secto
Slide 11: Consistently strong principal investment performance
Overview Coverage Equities & Research Private Capital Principal Q&A Glossary Private Credit Equity Consistently strong <0.3% 8%+ ~24% 2-3 years principal investment Average annual Aggregate lifetime Aggregate lifetime Average hold period on performance realised loss rate asset IRR on equity IRR4 equ
Slide 12: Our principal capabilities allow us to unlock value for clients
Overview Coverage Equities & Research Private Capital Principal Q&A Glossary $A16.7b global private credit portfolio Our principal capabilities ● Private credit solutions to private equity portfolio companies and other corporates allow us to ● Leveraging our relationships with financial sponsors and
Slide 13: Investment and development capital to build businesses and communities
Overview Coverage Equities & Research Private Capital Principal Q&A Glossary $A3.9b global equity portfolio Investment and development ● Delivering infrastructure development capital across key themes: − Social and economic infrastructure LNG Transport − Digital infrastructure capital to build Infra
Slide 14: Our approach to risk management is based on core risk management principles and culture
Overview Coverage Equities & Research Private Capital Principal Q&A Glossary Our approach to risk management is based on core risk management principles and culture As a risk-taking business, risk management is core to our success Within Macquarie Capital, we own the We seek to understand the worst
Slide 15: Our team and culture are our advantage
Overview Coverage Equities & Research Private Capital Principal Q&A Glossary Our team and culture are our advantage Our network, mindset and capabilities combine to create opportunities Differentiated network ● We connect our clients, partners and counterparties with the broader Differentiated Solut
Slide 16: Delivering on our strategy
Overview Coverage Equities & Research Private Capital Principal Q&A Glossary Delivering on our strategy 2021 Operational Briefing 2023 update Deep expertise in key Deep expertise: transformative trends ● Continued activity around our focus areas − Private capital – Over 65% of YTD FY231 Americas tra
Slide 17: Today's roadmap
Overview Coverage Equities & Research Private Capital Principal Q&A Glossary Today’s roadmap Our strategic positioning is consistent The Americas is a huge We are specialised. Picking We bring the balance sheet Our staff and culture are growth opportunity for our spots and focusing to bear, allowing
Slide 18: Depth of coverage
02 Depth of coverage David Berman Sam Shah
Slide 19: Our approach is to create relevance to our clients
Overview Coverage Equities & Research Private Capital Principal Q&A Glossary Our approach is to create relevance to our clients In addition to establishing deep expertise, we work to achieve the below. We find that combining all of this maximises relevance Integrated approach to Strategic, forward-
Slide 20: We are deliberate about our chosen niches
Overview Coverage Equities & Research Private Capital Principal Q&A Glossary We are deliberate about our chosen niches What deep expertise looks like Examples of niches Insurance Gaming and Government Education brokerage entertainment services Infrastructure / Core+ software Commercial Lines Pricing
Slide 21: Enabling outcomes
Overview Coverage Equities & Research Private Capital Principal Q&A Glossary Enabling outcomes We create flexible, client-focused solutions Integrated approach to Strategic, forward- Solutions New and converging Culture of creativity & client coverage looking dialogue provider sectors innovation ● E
Slide 22: Equities and research
03 Equities and research Miki Edelman
Slide 23: Our US Equities focus areas
Overview Coverage Equities & Research Private Capital Principal Q&A Glossary Our US Equities focus areas We have positioned our capability suite around three core areas where we believe we can be the most relevant to our clients US research Asia-Pacific Global execution Progressive, independent, Bri
Slide 24: Our research approach
Overview Coverage Equities & Research Private Capital Principal Q&A Glossary Our research approach Our team brings deep specialisation, driving insights that encourage critical thinking. We look to understand eco-systems and focus on thematics over short-term price action Sector team heads US Direct
Slide 25: International ETF creation | redemption
Overview Coverage Equities & Research Private Capital Principal Q&A Glossary International ETF creation | redemption Our US equities brokerage has launched an International ETF creation and redemption business where Macquarie acts as an Authorised Participant (AP). This opportunity leverages our str
Slide 26: Private capital and financial sponsors
04 Private capital and financial sponsors Tom Amster Plern Bonython
Slide 27: Private equity market opportunity
Overview Coverage Equities & Research Private Capital Principal Q&A Glossary Private equity market US private equity deal activity1 opportunity 9,120 8,897 5,855 6,019 6,009 A majority of our activity relates to this 4,302 4,528 4,618 5,062 large private market, with long-term 3,611 3,376 growth and
Slide 28: Case study: McGraw Hill Education
Overview Coverage Equities & Research Private Capital Principal Q&A Glossary Case study: McGraw Hill Education Private Equity uniquely provides a virtuous cycle of repeat transactions driven by incumbency and Macquarie Capital’s skilled deal execution Jul 2021 Oct / Nov 2021 Sale from Apollo Global
Slide 29: Infrastructure private capital market opportunity
Overview Coverage Equities & Research Private Capital Principal Q&A Glossary Infrastructure private capital Infrastructure funds have raised record amounts of capital in recent years, prompting a widening of their investment market opportunity apertures to become important M&A participants across in
Slide 30: Unique coverage and opportunities in infrastructure private capital
Overview Coverage Equities & Research Private Capital Principal Q&A Glossary Unique coverage and opportunities in infrastructure private capital After decades of leadership in all areas of infrastructure, our unique positioning and supportive long-term trends still provide material growth opportunit
Slide 31: Principal activities
05 Principal activities Bill Eckmann Larry Handen John Pickhaver
Slide 32: Private Credit overview
Overview Coverage Equities & Research Private Capital Principal (Private Credit) Q&A Glossary Private Credit overview Significant opportunity in evolving landscape Market opportunity Private credit asset class continues to have a high-growth tailwind and take market share, while also exhibiting bett
Slide 33: Private Credit market evolution
Overview Coverage Equities & Research Private Capital Principal (Private Credit) Q&A Glossary Private Credit market evolution Since the Global Financial Crisis, there has been significant growth of the Private Credit market. Financial sponsors and borrowers have become accustomed to private credit a
Slide 34: Private Credit portfolio composition
Overview Coverage Equities & Research Private Capital Principal (Private Credit) Q&A Glossary Private Credit portfolio B2B / Other Software and Tech Enabled ● Sector focus on niches with strong composition1 Education predictability and defensive characteristics - often overlapping with longstanding
Slide 35: Private Credit's offering delivers strong risk adjusted returns
Overview Coverage Equities & Research Private Capital Principal (Private Credit) Q&A Glossary Private Credit’s offering delivers strong risk adjusted returns Our synergistic approach to credit solutions, with private credit and syndicated debt underwriting capability, enable multiple debt financing
Slide 36: Macquarie Capital Growth & Technology
Overview Coverage Equities & Research Private Capital Principal (Growth & Tech) Q&A Glossary Macquarie Capital Growth & Technology Growth-Oriented Asset-Light (GOAL) investments for tech companies serving businesses and the public sector We mainly target these sectors… …with this criteria… Public Se
Slide 37: Our focus benefits from macro tailwinds and deep sector expertise
Overview Coverage Equities & Research Private Capital Principal (Growth & Tech) Q&A Glossary Our focus benefits from macro tailwinds and Macquarie’s deep sector expertise Public sector Capacity constrained/enabled FinTech Public social spending as a share of GDP1 Population growth and resource Digit
Slide 38: Why companies choose us
Overview Coverage Equities & Research Private Capital Principal (Growth & Tech) Q&A Glossary Why companies choose us Focus, flexibility, scale, and post-transaction value-add are key to winning deals and generating strong returns Competitive advantage ● We have deep domain expertise as investors, op
Slide 39: Select investments
Overview Coverage Equities & Research Private Capital Principal (Growth & Tech) Q&A Glossary Select investments Our deals increasingly cross multiple focus areas Public Sector (including Capacity Education) Constrained/ FinTech Technology & Enabled Services Select investments Select investments Sele
Slide 40: Case Study – Dovel Technologies, Inc.
Overview Coverage Equities & Research Private Capital Principal (Growth & Tech) Q&A Glossary Case Study – Dovel Technologies, Inc. Company overview: Dovel is a leading technology solutions provider to US federal government agencies that blends deep domain expertise and advanced technologies in the h
Slide 41: Outcome - PayIt
Overview Coverage Equities & Research Private Capital Principal (Growth & Tech) Q&A Glossary Outcome - PayIt Company overview: PayIt is a leading provider of modern, cloud-based software and integrated payments to state and local governments. Founded in 2013, PayIt allows governments to digitise cri
Slide 42: Infrastructure & Energy Capital (IEC) business model
Overview Coverage Equities & Research Private Capital Principal (IEC) Q&A Glossary Infrastructure & Energy Capital (IEC) business model We invest across infrastructure sectors, asset stages and transaction structures We are mainly targeting these Industrial sectors… … across the asset stages... 1 Ec
Slide 43: IEC capital deployment expected to continue based on market opportunities
Overview Coverage Equities & Research Private Capital Principal (IEC) Q&A Glossary IEC capital deployment expected to continue based on market opportunities We have aligned our business and expertise with key market drivers to enable growth IEC market drivers IEC is aligned with key market trends th
Slide 44: Key recent investment examples
Overview Coverage Equities & Research Private Capital Principal (IEC) Q&A Glossary Key recent investment examples IEC in the Americas is active in all of our areas of focus and regions 1 2 Social & Economic Digital Infrastructure Penn Bridges Package 1 P3 Prime Data Centers Modernising Pennsylvania’
Slide 45: Closing and Q&A
06 Closing and Q&A Michael Silverton
Slide 46: What's next for Macquarie Capital in the Americas
Overview Coverage Equities & Research Private Capital Principal Q&A Glossary What’s next for Macquarie Capital in the Americas Continued execution of our strategy of specialisation to capitalise on significant market opportunity ● Delivering on the opportunity from our existing platform focused arou
Slide 47: Glossary
07 Glossary Image credit: Michael Baker International (MBI)
Slide 48: Glossary
Overview Coverage Equities & Research Private Capital Principal Q&A Glossary Glossary $A / AUD Australian Dollar CY Calendar Year $US / USD United States Dollar DCM Debt Capital Markets £ / GBP Pound Sterling DPS Dividends Per Share € Euro DRP Dividend Reinvestment Plan 1H23 Half Year ended 30 Septe
Slide 49: Glossary
Overview Coverage Equities & Research Private Capital Principal Q&A Glossary Glossary GIG Green Investment Group MW Megawatt GP General Partner MWh Megawatt Hour GW Gigawatt NPAT Net Profit After Tax ha Hectres NPC Net Profit Contribution HNW High Net Worth NSFR Net Stable Funding Ratio HVDC High-vo
Slide 50: Macquarie Group Limited, Americas Investor Tour
Macquarie Group Limited, Americas Investor Tour Day 2, New York 8 March 2023 Image credit: Michael Baker International (MBI) © Macquarie Group Limited 50