Macquarie Group, Ltd. · ASX:MQG
Macquarie — September 2024 Conferences
47 slides from Macquarie's conference presentation, September 2024
Slide 1: September Conferences
September Presentation to investors and analysts Conferences Result announcement for the full year ended 31Presentation March 2024 to Investors and Analysts 3 May 2024 September 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 Overview of 02 Operating 03 Outlook Macquarie Groups 04 Key Thematics 05 Appendix © Macquarie Group Limited 3
Slide 4: Overview of Macquarie
01 Overview of Macquarie Introduction Sam Dobson Head of Investor Relations © Macquarie Group Limited 4
Slide 5: Macquarie at a glance
Overview of Macquarie Operating Groups Outlook Key Thematics Appendix Macquarie at a glance Empowering people to innovate and invest for a better future Global financial services group Diverse business mix ● Headquartered and listed in Australia A diversified financial services group providing clien
Slide 6: About Macquarie
Overview of Macquarie Operating Groups Outlook Key Thematics Appendix About Macquarie Annuity-style activities | Net Profit Contribution ~45% Markets-facing activities | Net Profit Contribution ~55% BFS MAM CGM MacCap Banking and Financial Services Macquarie Asset Management Commodities and Global M
Slide 7: Diversification by region
Overview of Macquarie Operating Groups Outlook Key Thematics Appendix 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 Australia4 34% o
Slide 8: 55 years of unbroken profitability
Overview of Macquarie Operating Groups Outlook Key Thematics Appendix 55 years of unbroken profitability FY23 Staff: $Ab 20,5094 Total Dividends ASX 200 MSCI World 6.0 Performance shareholder Earnings per per share Diversified Capital MSCI World FY22 AMP Capital (ASX: MQG) return2 share CAGR2 CAGR2
Slide 9: Steady earnings profile
Overview of Macquarie Operating Groups Outlook Key Thematics Appendix Steady earnings profile FY24 EPS of $A9.17 FY24 Operating income of $A16,887m $A $Am 15.00 20,000 12.00 16,000 9.00 12,000 6.00 8,000 3.00 4,000 - - FY18 FY19 FY20 FY21 FY22 FY23 FY24 FY18 FY19 FY20 FY21 FY22 FY23 FY24 1H 2H © Mac
Slide 10: Stable earnings
Overview of Macquarie Operating Groups Outlook Key Thematics Appendix Stable earnings 5-year earnings volatility relative to Macquarie 16-year earnings volatility relative to Macquarie (includes GFC) Multiple to Macquarie Multiple to Macquarie 4.0x 3.0 4.0 2.5x 3.0 2.8x 2.0x 2.7x 2.0 2.4x 1.8x 1.4x
Slide 11: Strong shareholder returns
Overview of Macquarie Operating Groups Outlook Key Thematics Appendix Strong shareholder returns For purchases made and held to sale Macquarie has generally outperformed the ASX 200, Diversified Financials and MSCI World Capital Markets Index, with 10-year average return on equity of 14%, exceeding
Slide 12: Macquarie Bank Limited long-term ratings stability
Overview of Macquarie Operating Groups Outlook Key Thematics Appendix Macquarie Bank Limited long-term ratings stability Standard & Poor’s Ratings since 2007 AA+ AA Rating movement (notches) AA- A+ A A- BBB+ BBB Macquarie Bank1 JPMorgan Chase UBS AG Bank of America Citibank Morgan Stanley Goldman Sa
Slide 13: Operating Groups
02 Operating Groups Overview of Result Shemara Wikramanayake Managing Director and Chief Executive Officer © Macquarie Group Limited 13
Slide 14: Macquarie Asset Management
Overview of Macquarie Operating Groups (MAM) Outlook Key Thematics Appendix Macquarie Asset Management MAM is a global asset manager with ~$A938b of assets under management (AUM)1 Real Assets Real Estate Credit Equities & Multi-asset $A310b $A32b $A340b $A256b Infrastructure2 ● Core / Core plus and
Slide 15: Macquarie Asset Management highlights
Overview of Macquarie Operating Groups (MAM) Outlook Key Thematics Appendix Macquarie Asset FY24 awards Private Public Management & rankings Markets Investments Investing to deliver positive impact for our clients, portfolio companies and communities $A370.9b on8% Mar 23 $A567.4b 6% on Mar 23 No. 1
Slide 16: Macquarie Asset Management: funds across asset classes
Overview of Macquarie Operating Groups (MAM) Outlook Key Thematics Appendix Macquarie Asset Management Actively manages funds for investors across multiple asset classes Base Fees AUM Private Markets fundraising $Am $Ab $Ab 2,771 2,782 2,874 1,000 45 2,800 938.3 40 38.2 900 878.6 2,400 35 2,021 1,98
Slide 17: MAM composition of income
Overview of Macquarie Operating Groups (MAM) Outlook Key Thematics Appendix MAM composition of income Asset Management Net Income (AMNI) Net Other Operating Income (NOOI) Net Base fees on Operating Performance Net investment Net operating - + + + + Other income = Profit EUM / AUM expenses fees incom
Slide 18: MAM Private Markets historical income
Overview of Macquarie Operating Groups (MAM) Outlook Key Thematics Appendix MAM Private Markets historical income $Am % of EUM 2,500 2.00% Private Markets base fees (LHS) 222 Private Markets performance fees and Closing Private Markets EUM $Ab 1.80% other income (LHS) 206 2,000 1.60% 1.40% 158 149 1
Slide 19: Banking and Financial Services
Overview of Macquarie Operating Groups (BFS) Outlook Key Thematics Appendix Banking and Financial Services A technology-driven Australian retail bank and wealth manager ~1.85m Offerings Expertise and awards customers ● Award winning digital banking offering Personal Banking 3,690 Retail banking prod
Slide 20: Banking and Financial Services highlights
Overview of Macquarie Operating Groups (BFS) Outlook Key Thematics Appendix Banking and FY24 awards $A119.3b on10% $A142.7b on10% Financial Services Mar 23 Mar 23 Home loan portfolio1 Total BFS deposits2 A technology-driven Australian retail bank and wealth manager $A15.8b 22% on Mar 23 $A4.6b 25% o
Slide 21: Banking and Financial Services
Overview of Macquarie Operating Groups (BFS) Outlook Key Thematics Appendix Banking and Financial Services A technology-driven Australian retail bank and wealth manager Net Profit Contribution1 BFS Deposits2 Loan Portfolio3 $Am $Ab $Ab 1,400 160 140.2 1,241 142.7 140 1,201 127.7 1,200 140 129.4 120
Slide 22: BFS home loan portfolio composition
Overview of Macquarie Operating Groups (BFS) Outlook Key Thematics Appendix BFS home loan portfolio composition NT 0.2% 3% 1% 2% 100% 3% QLD 3% 19.8% 24% 20% WA 80% 30% 6.9% 20% 60% 22% NSW 23% 38.4% 23% 40% 22% 20% 42% ACT 28% 33% 2.5% 0% SA Mar-24 (Settlement Flow) Mar-24 (Portfolio Origination LV
Slide 23: Diversified deposit base
Overview of Macquarie Operating Groups (BFS) Outlook Key Thematics Appendix Diversified deposit base Macquarie has seen continued success in its long-term strategy of diversifying funding sources by growing its customer deposit base • Of approximately 1.85 million BFS clients, ~1.4 million are depos
Slide 24: Commodities and Global Markets
Overview of Macquarie Operating Groups (CGM) Outlook Key Thematics Appendix Commodities and Global Markets CGM is a global business offering capital and financing, risk management, market access and physical execution across: Commodities Financial Markets Asset Finance Capital and financing Market a
Slide 25: Commodities and Global Markets highlights
Overview of Macquarie Operating Groups (CGM) Outlook Key Thematics Appendix Commodities and FY24 awards Strong underlying client business Global Markets & rankings Commodities Financial Global business offering capital and ~8.5 billion financing, risk management, market access, cubic feet Decreased
Slide 26: Commodities
Overview of Macquarie Operating Groups (CGM) Outlook Key Thematics Appendix Commodities and Global Markets Provides clients with access to markets, financing, financial hedging, research and market analysis and physical execution 5-Year Average Net Profit Contribution1 Net Operating Income2 1% 11% 1
Slide 27: Strong underlying client business
Overview of Macquarie Operating Groups (CGM) Outlook Key Thematics Appendix Strong underlying client business Majority of income derived from underlying client business Operating Income Client numbers (excl. credit and other impairment charges) (excl. Asset Finance) Underlying client business1 • 40+
Slide 28: Underlying client activity driving regulatory capital and trading revenues
Overview of Macquarie Operating Groups (CGM) Outlook Key Thematics Appendix Underlying client activity driving regulatory capital and trading revenues Regulatory capital1 Group Daily trading profit and loss2 FY20 - FY24 ($Am) Days $Am • Majority of capital relates to credit risk reflecting client fo
Slide 29: Macquarie Capital
Overview of Macquarie Operating Groups (MacCap) Outlook Key Thematics Appendix Macquarie Capital Macquarie Capital combines specialist expertise, Service Offerings innovative advice and flexible capital solutions to help Advisory Investing & Financing Capital Markets Equities our clients and partner
Slide 30: Macquarie Capital highlights
Overview of Macquarie Operating Groups (MacCap) Outlook Key Thematics Appendix Macquarie Capital FY24 awards Investing in areas of deep expertise. During FY24, investments completed in sub-sectors across venture capital, growth equity, A global adviser, investor and developer, we & rankings infrastr
Slide 31: Macquarie Capital
Overview of Macquarie Operating Groups (MacCap) Outlook Key Thematics Appendix Macquarie Capital Advises and invests alongside clients and partners to realise opportunity; develops and invests in infrastructure and energy projects Income by region1 Private Credit2 Regulatory capital ($A5.4b)3 $Am $A
Slide 32: Outlook
03 Outlook Result Analysis and Financial Management Alex Harvey Chief Financial Officer © Macquarie Group Limited 32
Slide 33: Short-term outlook
Overview of Macquarie Operating Groups Outlook Key Thematics Appendix Short-term outlook Factors impacting short-term outlook Annuity-style businesses Markets-facing businesses Non-Banking Group Macquarie Asset Management (MAM) Macquarie Capital (MacCap) ● Base fees expected to be broadly in line Su
Slide 34: Short-term outlook
Overview of Macquarie Operating Groups Outlook Key Thematics Appendix Short-term outlook The range of factors that may influence our short-term outlook include: ● Market conditions including: global economic conditions, inflation and interest rates, significant volatility events, and the impact of g
Slide 35: Medium-term outlook
Overview of Macquarie Operating Groups Outlook Key Thematics Appendix Medium-term outlook Macquarie remains well-positioned to deliver superior performance in the medium term with its diverse business mix across annuity-style and markets-facing businesses Deep expertise across diverse sectors in maj
Slide 36: Medium-term outlook
Overview of Macquarie Operating Groups Outlook Key Thematics Appendix Medium-term outlook Annuity-style businesses Markets-facing businesses Non-Banking Group Macquarie Asset Management (MAM) Macquarie Capital (MacCap) ● Well-positioned to respond to current market conditions and grow assets under m
Slide 37: Approximate business Basel III Capital and ROE
Overview of Macquarie Operating Groups Outlook Key Thematics Appendix Approximate business Basel III Capital and ROE 31 Mar 24 APRA Basel III Capital FY24 Return on Ordinary 18-year Average Return on Operating Group @ 10.5% ($Ab) Equity1 Ordinary Equity2 Annuity-style businesses 11.4 Macquarie Asset
Slide 38: Key Thematics
04 Key Thematics Outlook Shemara Wikramanayake Managing Director and Chief Executive Officer © Macquarie Group Limited 38
Slide 39: Infrastructure
Overview of Macquarie Operating Groups Outlook Key Thematics Appendix Infrastructure How we built our infrastructure expertise Largest Manager of Digital Infrastructure (since 2015) infrastructure ~180 manager globally1 portfolio companies Debt and equity solutions (since 2009) for Real Assets2 Soci
Slide 40: Digitisation
Overview of Macquarie Operating Groups Outlook Key Thematics Appendix Digitisation We continue to invest in building leadership and digital capability in our people, supporting them to unlock productivity, enhance creativity and improve outcomes, ultimately enhancing the experiences of our clients a
Slide 41: How we built our digitisation expertise
Overview of Macquarie Operating Groups Outlook Key Thematics Appendix How we built our digitisation expertise Investing in platforms 1999 2012 2014 2015 2016 2019 2021 2022 Innovative wrap Global oil trading API-enabled technology Car buying and Launched Digital First bank with lending Core banking
Slide 42: Energy transition
Overview of Macquarie Operating Groups Outlook Key Thematics Appendix Energy transition How we built our energy transition expertise Carbon offsets (2021) 95 GW 3 GW Carbon capture and green energy assets in under construction1 storage (2020) development1 E-mobility (2020) Green fuels (including hyd
Slide 43: Commodities
Overview of Macquarie Operating Groups Outlook Key Thematics Appendix Commodities How we built our commodities expertise House of the Year Fund Finance (EMEA), Global low-carbon fuels platform (2023) • Oil and Products1 Merger of Agriculture and Global Oil businesses (2022) • Electricity1 Acquisitio
Slide 44: Appendix
05 Appendix Glossary Appendix A Detailed Result Commentary © Macquarie Group Limited 44
Slide 45: Glossary
Overview of Macquarie Operating Groups Outlook Key Thematics Appendix 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 CMD Credit Markets Division CH
Slide 46: Glossary
Overview of Macquarie Operating Groups Outlook Key Thematics Appendix Glossary IRR Internal Rate of Return MPA Mortgage Professional Australia IRRBB Interest Rate Risk in the Banking Book MREP Macquarie Real Estate Partners IFRS International Financial Reporting Standards MSCI Morgan Stanley Capital
Slide 47: September Conferences
September Presentation to investors and analysts Conferences Result announcement for the full year ended 31Presentation March 2024 to Investors and Analysts 3 May 2024 September 2024 © Macquarie Group Limited 47