Macquarie Group, Ltd. · ASX:MQG
Macquarie — Shareholder Meeting (July 2019)
43 slides from Macquarie's shareholder meeting presentation, Jul 25, 2019
Slide 1: Macquarie Group Limited 2019 Annual General Meeting
For personal use only Macquarie Group Limited 2019 Annual General Meeting 25 July 2019
Slide 2: Disclaimer
Macquarie I Annual General Meeting I macquarie.com FY19 Highlights Overview of FY19 1Q20 Update FY20 Outlook Formal Business Glossary Disclaimer For personal use only The material in this presentation has been prepared by Macquarie Group Limited ABN 94 122 169 279 (MGL) and is general background inf
Slide 3: Agenda
For personal use only Agenda FY19 Highlights 01 Overview of FY19 02 1Q20 Update 03 FY20 Outlook 04 Formal Business 05 Glossary 06
Slide 4: FY19 Highlights
For personal use only 01 FY19 Highlights Peter Warne Chairman
Slide 5: Financial performance
Macquarie I Annual General Meeting I macquarie.com FY19 Highlights Overview of FY19 1Q20 Update FY20 Outlook Formal Business Glossary Financial performance For personal use only 5
Slide 6: FY19 dividend
Macquarie I Annual General Meeting I macquarie.com FY19 Highlights Overview of FY19 1Q20 Update FY20 Outlook Formal Business Glossary FY19 dividend For personal use only 2H19 ORDINARY DIVIDEND FROM FY19 ORDINARY DIVIDEND FROM $A 3.60 $A2.15 $A $A5.25 (45% franked) 5.75 (45% franked) (45% franked) IN
Slide 7: Board changes
Macquarie I Annual General Meeting I macquarie.com FY19 Highlights Overview of FY19 1Q20 Update FY20 Outlook Formal Business Glossary Board changes For personal use only PHILIP COFFEY J I L L I AN B R O AD B E N T AO • Effective 28 August 2018, Philip Coffey joined the Boards of • Effective 5 Novemb
Slide 8: Risk culture and conduct
Macquarie I Annual General Meeting I macquarie.com FY19 Highlights Overview of FY19 1Q20 Update FY20 Outlook Formal Business Glossary Risk culture and conduct For personal use only Increased engagement with regulators around the world during FY19 with specific focus on conduct through the Banking Ro
Slide 9: Risk culture and conduct in practice
Macquarie I Annual General Meeting I macquarie.com FY19 Highlights Overview of FY19 1Q20 Update FY20 Outlook Formal Business Glossary Risk culture and conduct in practice For personal use only Operating and Support Groups, Risk Management Group (RMG), Integrity Office and Human Resources work togeth
Slide 10: Environmental, Social and Governance (ESG)
Macquarie I Annual General Meeting I macquarie.com FY19 Highlights Overview of FY19 1Q20 Update FY20 Outlook Formal Business Glossary Environmental, Social and Governance (ESG) For personal use only Macquarie’s ESG commitment reflects our responsibility to clients, shareholders, communities, our peo
Slide 11: Actively supporting our clients and communities in the global energy transition
Macquarie I Annual General Meeting I macquarie.com FY19 Highlights Overview of FY19 1Q20 Update FY20 Outlook Formal Business Glossary Actively supporting our clients and communities in the global energy transition: For personal use only Focused on driving solutions across all sources of emissions Ac
Slide 12: Macquarie Group Foundation
Macquarie I Annual General Meeting I macquarie.com FY19 Highlights Overview of FY19 1Q20 Update FY20 Outlook Formal Business Glossary Macquarie Group Foundation For personal use only A record year of giving to the communities in which we live and work FY19 $A31.7m donated by staff and Foundation 53,
Slide 13: Overview of FY19
Macquarie I Annual General Meeting I macquarie.com For personal use only FY19 Highlights Overview of FY19 1Q20 Update FY20 Outlook Formal Business Glossary 13
Slide 14: Overview of FY19
For personal use only 02 Overview of FY19 Shemara Wikramanayake Managing Director and Chief Executive Officer
Slide 15: Years of unbroken profitability
Macquarie I Annual General Meeting I macquarie.com FY19 Highlights Overview of FY19 1Q20 Update FY20 Outlook Formal Business Glossary 50 years of unbroken profitability For personal use only Total Earnings Dividends MSCI World MSCI shareholder per share per share Diversified Capital World $Ab Perfor
Slide 16: Diversification by region
Macquarie I Annual General Meeting I macquarie.com FY19 Highlights Overview of FY19 1Q20 Update FY20 Outlook Formal Business Glossary Diversification by region For personal use only Asia International income 66% of total income1 Staff Total staff 2 15,715, International staff 58% of total 9% of tota
Slide 17: FY19 net profit contribution from Operating Groups
Macquarie I Annual General Meeting I macquarie.com FY19 Highlights Overview of FY19 1Q20 Update FY20 Outlook Formal Business Glossary FY19 net profit contribution from Operating Groups For personal use only $A6,145m up 21% on FY18 Annuity-style businesses Markets-facing businesses $A3,287m 4% ON FY1
Slide 18: Macquarie Asset Management
Macquarie I Annual General Meeting I macquarie.com FY19 Highlights Overview of FY19 1Q20 Update FY20 Outlook Formal Business Glossary Macquarie Asset Management For personal use only Actively manages funds for investors MIRA MIM across multiple asset classes 36% 8% FY19 Net profit contribution $A116
Slide 19: Corporate and Asset Finance
Macquarie I Annual General Meeting I macquarie.com FY19 Highlights Overview of FY19 1Q20 Update FY20 Outlook Formal Business Glossary Corporate and Asset Finance For personal use only Finances the assets people use every day Asset Finance Principal Finance FY19 Net profit contribution 10 % 2% 12% 5%
Slide 20: Banking and Financial Services
Macquarie I Annual General Meeting I macquarie.com FY19 Highlights Overview of FY19 1Q20 Update FY20 Outlook Formal Business Glossary Banking and Financial Services For personal use only Macquarie’s retail banking and financial services business FY19 Net profit contribution 3% $A38.5b 18% on Mar 18
Slide 21: Commodities and Global Markets
Macquarie I Annual General Meeting I macquarie.com FY19 Highlights Overview of FY19 1Q20 Update FY20 Outlook Formal Business Glossary Commodities and Global Markets For personal use only Provides clients with access to markets, financing, financial hedging, research and Commodity Markets & Finance C
Slide 22: Macquarie Capital
Macquarie I Annual General Meeting I macquarie.com FY19 Highlights Overview of FY19 1Q20 Update FY20 Outlook Formal Business Glossary Macquarie Capital For personal use only Advises and invests alongside clients and partners to realise opportunity; develops and invests in infrastructure and energy p
Slide 23: Capital allocation and returns by business
Macquarie I Annual General Meeting I macquarie.com For personal use only FY19 Highlights Overview of FY19 1Q20 Update FY20 Outlook Formal Business Glossary Approximate As at 31 March 2019 business APRA Basel III Capital 1 Approx. FY19 Return on Approx. 13-Year Average Return 2 @ 8.5% ($Ab) Ordinary
Slide 24: Business backed by strong funding and capital
Macquarie I Annual General Meeting I macquarie.com FY19 Highlights Overview of FY19 1Q20 Update FY20 Outlook Formal Business Glossary Business backed by strong funding and capital For personal use only MGL funded balance sheet APRA Basel III surplus capital6 Credit ratings 31 March 2019 31 March 201
Slide 25: 1Q20 Update
For personal use only 03 1Q20 Update Shemara Wikramanayake Managing Director and Chief Executive Officer
Slide 26: 1Q20 Overview
Macquarie I Annual General Meeting I macquarie.com For personal use only FY19 Highlights Overview of FY19 1Q20 Update FY20 Outlook Formal Business Glossary • Satisfactory trading conditions with 1Q20 operating group contribution 1Q20 broadly in line with the prior corresponding period (pcp) (1Q19) a
Slide 27: 1Q20 annuity-style businesses
Macquarie I Annual General Meeting I macquarie.com For personal use only FY19 Highlights Overview of FY19 1Q20 Update FY20 Outlook Formal Business Glossary 1Q20 Macquarie Asset Management Corporate and Asset Finance Banking and Financial Services 24% FY19 contribution1 17% FY19 contribution1 12% FY1
Slide 28: 1Q20 markets-facing businesses
Macquarie I Annual General Meeting I macquarie.com For personal use only FY19 Highlights Overview of FY19 1Q20 Update FY20 Outlook Formal Business Glossary 1Q20 Commodities and Global Markets Macquarie Capital 25% FY19 contribution1 22% FY19 contribution1 • Strong contribution from client hedging an
Slide 29: Funded balance sheet remains strong
Macquarie I Annual General Meeting I macquarie.com FY19 Highlights Overview of FY19 1Q20 Update FY20 Outlook Formal Business Glossary Funded balance sheet remains strong For personal use only Term liabilities exceed term assets 31 March 2018 31 March 2019 30 June 2019 $Ab $Ab $Ab These charts repres
Slide 30: Basel III capital position
Macquarie I Annual General Meeting I macquarie.com FY19 Highlights Overview of FY19 1Q20 Update FY20 Outlook Formal Business Glossary Basel III capital position For personal use only • APRA Basel III Group capital at Jun 19 of $A20.8b; Group capital surplus of $A5.0b1,2 • APRA Basel III CET1 ratio:
Slide 31: Capital management update
Macquarie I Annual General Meeting I macquarie.com For personal use only FY19 Highlights Overview of FY19 1Q20 Update FY20 Outlook Formal Business Glossary Capital Macquarie Group Employee Retained Equity Plan (MEREP) Dividend Reinvestment Plan (DRP) management • A total of approximately $A607m of M
Slide 32: Business growth
Macquarie I Annual General Meeting I macquarie.com FY19 Highlights Overview of FY19 1Q20 Update FY20 Outlook Formal Business Glossary Business growth For personal use only Business capital requirements1 $A0.5b business growth $A0.3b business growth 1Q20 key drivers over FY19 (excl. Corporate) over 1
Slide 33: Strong regulatory ratios
Macquarie I Annual General Meeting I macquarie.com FY19 Highlights Overview of FY19 1Q20 Update FY20 Outlook Formal Business Glossary Strong regulatory ratios For personal use only Bank Group (Jun 19) 17.5% 7.5% 190.0% 115.0% 14.9% 6.0% 14.0% 6.0% 160.0% 166% 110.0% 111% = 5.4% 12.0% 10.5% 4.5% 130.
Slide 34: Regulatory update
Macquarie I Annual General Meeting I macquarie.com For personal use only FY19 Highlights Overview of FY19 1Q20 Update FY20 Outlook Formal Business Glossary Regulatory Regulatory update • APRA is currently undertaking regulatory reviews in a number of areas, including: update – Finalisation of Basel
Slide 35: Regulatory update (cont'd)
Macquarie I Annual General Meeting I macquarie.com For personal use only FY19 Highlights Overview of FY19 1Q20 Update FY20 Outlook Formal Business Glossary Regulatory update (cont’d) Regulatory • The Banking Executive Accountability Regime (BEAR) applied to Macquarie from 1 July 2019. To ensure full
Slide 36: Operating groups update
Macquarie I Annual General Meeting I macquarie.com For personal use only FY19 Highlights Overview of FY19 1Q20 Update FY20 Outlook Formal Business Glossary Operating Operating groups update • Effective 1 July 2019 groups – Certain fiduciary businesses, such as the infrastructure debt business (MIDIS
Slide 37: Management changes: Renewal and globalisation of Executive Committee
Macquarie I Annual General Meeting I macquarie.com FY19 Highlights Overview of FY19 1Q20 Update FY20 Outlook Formal Business Glossary Management changes: For personal use only Renewal and globalisation of Executive Committee GARRY FARRELL FLORIAN HEROLD DANIEL WONG MICHAEL SILVERT ON NICHOLAS O’KANE
Slide 38: FY20 Outlook
For personal use only 04 FY20 Outlook Shemara Wikramanayake Managing Director and Chief Executive Officer
Slide 39: Factors impacting short-term outlook
Macquarie I Annual General Meeting I macquarie.com FY19 Highlights Overview of FY19 1Q20 Update FY20 Outlook Formal Business Glossary Factors impacting short-term outlook For personal use only Annuity-style businesses Markets-facing businesses Macquarie Asset Management (MAM) Commodities and Global
Slide 40: Short-term outlook
Macquarie I Annual General Meeting I macquarie.com For personal use only FY19 Highlights Overview of FY19 1Q20 Update FY20 Outlook Formal Business Glossary Short-term • The Group’s result for FY20 is currently expected to be slightly down on FY19 outlook • Our short-term outlook remains subject to:
Slide 41: Medium-term outlook
Macquarie I Annual General Meeting I macquarie.com For personal use only FY19 Highlights Overview of FY19 1Q20 Update FY20 Outlook Formal Business Glossary Medium-term • Macquarie remains well positioned to deliver superior performance in the medium-term • Deep expertise in major markets • Build on
Slide 42: Medium-term
Macquarie I Annual General Meeting I macquarie.com FY19 Highlights Overview of FY19 1Q20 Update FY20 Outlook Formal Business Glossary Medium-term For personal use only Annuity-style businesses Markets-facing businesses Macquarie Asset Management (MAM) Macquarie Capital (MacCap) Non-Banking Group Non
Slide 43: Formal Business
For personal use only 05 Formal Business Peter Warne Chairman