Macquarie Group, Ltd. · ASX:MQG
Macquarie — Shareholder Meeting (July 2017)
43 slides from Macquarie's shareholder meeting presentation, Jul 27, 2017
Slide 1: 2017 Annual General Meeting
Macquarie Group Limited For personal use only 2017 Annual General Meeting 27 July 2017
Slide 2: Disclaimer
Macquarie Group Limited 2017 Annual General Meeting macquarie.com FY17 Overview Overview of the result 1Q18 Update FY18 Outlook Appendices 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 backg
Slide 3: Agenda
Macquarie Group Limited 2017 Annual General Meeting macquarie.com FY17 Overview Overview of the result 1Q18 Update FY18 Outlook Appendices Agenda For personal use only 1. FY17 Overview 2. Overview of Result 3. 1Q18 Update 4. FY18 Outlook MACQUARIE 2017
Slide 4: FY17 Overview
Macquarie Group Limited 2017 Annual General Meeting macquarie.com FY17 Overview Overview of the result 1Q18 Update FY18 Outlook Appendices FY17 Overview 01 For personal use only Peter Warne – Chairman MACQUARIE 2017
Slide 5: Performance reflects mix and quality of Macquarie's businesses
Macquarie Group Limited 2017 Annual General Meeting macquarie.com FY17 Overview Overview of the result 1Q18 Update FY18 Outlook Appendices Performance reflects mix and quality of Macquarie’s businesses For personal use only • In FY17, Macquarie's businesses continued to grow with profit up 7.5%
Slide 6: Financial performance
Macquarie Group Limited 2017 Annual General Meeting macquarie.com FY17 Overview Overview of the result 1Q18 Update FY18 Outlook Appendices Financial performance For personal use only Operating income $A10,364m Profit $A2,217m $Am FY17 OPERATING INCOME $Am FY17 PROFIT 12,000 2,500 2 % ON FY16 2,0
Slide 7: FY17 dividend
Macquarie Group Limited 2017 Annual General Meeting macquarie.com FY17 Overview Overview of the result 1Q18 Update FY18 Outlook Appendices FY17 dividend For personal use only FY17 ORDINARY DIVIDEND FROM 2H17 ORDINARY DIVIDEND FROM $A $A4.00 $A 2.80 $A1.90 4.70 (40% franked) (45% franked) (45% fr
Slide 8: Years of profitability
Macquarie Group Limited 2017 Annual General Meeting macquarie.com FY17 Overview Overview of the result 1Q18 Update FY18 Outlook Appendices 48 years of profitability For personal use only $Ab $A2,217m 2.4 2.0 yrs 7.5% on FY16 1.6 1.2 0.8 0.4 - 8
Slide 9: Macquarie's total shareholder return continues to outperform
Macquarie Group Limited 2017 Annual General Meeting macquarie.com FY17 Overview Overview of the result 1Q18 Update FY18 Outlook Appendices Macquarie’s total shareholder return continues to outperform For personal use only • Since 2007, Macquarie’s TSR of 97% outperformed the ASX 200 by 47% and t
Slide 10: Risk culture and conduct
Macquarie Group Limited 2017 Annual General Meeting macquarie.com FY17 Overview Overview of the result 1Q18 Update FY18 Outlook Appendices Risk culture and conduct For personal use only • Macquarie’s unbroken profitability is underpinned by our long-standing risk culture. This is reflected in ou
Slide 11: Risk culture and conduct in practice
Macquarie Group Limited 2017 Annual General Meeting macquarie.com FY17 Overview Overview of the result 1Q18 Update FY18 Outlook Appendices Risk culture and conduct in practice For personal use only Our risk management approach has been largely consistent since inception and we continue to monito
Slide 12: A longstanding commitment to renewable energy
Macquarie Group Limited 2017 Annual General Meeting macquarie.com FY17 Overview Overview of the result 1Q18 Update FY18 Outlook Appendices A longstanding commitment to renewable energy For personal use only • Continue to support the transition to a low carbon economy • Service clients across var
Slide 13: Major Bank Levy
Macquarie Group Limited 2017 Annual General Meeting macquarie.com FY17 Overview Overview of the result 1Q18 Update FY18 Outlook Appendices Major Bank Levy For personal use only • The Major Bank Levy taxes 5 Australian banks on many of their non-retail deposit liabilities • Macquarie Group’s bank
Slide 14: Key management changes
Macquarie Group Limited 2017 Annual General Meeting macquarie.com FY17 Overview Overview of the result 1Q18 Update FY18 Outlook Appendices Key management changes For personal use only • Following the merger of MSG and CFM to New Executive Committee member create CGM in Nov 16, Andrew Downe, who
Slide 15: Foundation
Macquarie Group Foundation Providing support to hundreds of community organisations globally each year For personal use only SYDNEY FY17 $A29.4m donated by staff and Foundation 50,000 + 1,350 + HOURS CHARITIES SUPPORTED HONG KONG MORE THAN $A300m since 1985 LONDON NEW YORK
Slide 16: Overview of the result for the year ended 31 March 2017
Macquarie Group Limited 2017 Annual General Meeting macquarie.com FY17 Overview Overview of the result 1Q18 Update FY18 Outlook Appendices Overview of the result for the year ended 31 March 2017 02 For personal use only Nicholas Moore Managing Director and Chief Executive Officer MACQUARIE 201
Slide 17: FY17 result: $A2,217m up 7.5% on FY16
Macquarie Group Limited 2017 Annual General Meeting macquarie.com FY17 Overview Overview of the result 1Q18 Update FY18 Outlook Appendices FY17 result: $A2,217m up 7.5% on FY16 For personal use only FY16 FY17 FY17 v FY16 $Am $Am Operating income 10,158 10,364 2% Operating profit before tax 3,015
Slide 18: Where we make our income
Macquarie Group Limited 2017 Annual General Meeting macquarie.com FY17 Overview Overview of the result 1Q18 Update FY18 Outlook Appendices Where we make our income For personal use only International income 63% of total income1 Americas Total staff 13,597; International staff 55% of total INCOME
Slide 19: Growth of Annuity-style vs Capital markets facing businesses since FY13
Macquarie Group Limited 2017 Annual General Meeting macquarie.com FY17 Overview Overview of the result 1Q18 Update FY18 Outlook Appendices Growth of Annuity-style vs Capital markets facing businesses since FY13 For personal use only Annuity-style businesses represent approximately 70% of the Gro
Slide 20: Macquarie Asset Management
MAM ANNUITY-STYLE BUSINESS Macquarie Asset Management 33% For personal use only Assets under management $A480b MIRA MIM MSIS $A1.5b $A77.2b EQUITY UNDER MANAGEMENT $A320.3b ASSETS UNDER MANAGEMENT $A4.4b INVESTOR FUNDS ON MIDIS PLATFORM Net profit 6% ON FY16 $A15.6b New institutional mandates $A6.5b
Slide 21: Corporate and Asset Finance
CAF ANNUITY-STYLE BUSINESS Corporate and Asset Finance 25% For personal use only Asset and loan portfolio $A36.5b Asset finance Lending’s funded $A1.2b portfolio $A29.7b portfolio $A6.8b1 Net profit 6% ON FY16 One of Australia’s largest vehicle financiers, with over $A1.8b 610,000 cars 204 planes Op
Slide 22: Banking and Financial Services
BFS ANNUITY-STYLE BUSINESS Banking and Financial Services 11% For personal use only $A35.8b Australian loan portfolio Personal banking Wealth management Business banking $A513m 28.7b 1 72.2b 24 6.5b 10 $A $A $A Net profit 47% ON FY16 Australian mortgage % Funds on platform1 % Business Banking % port
Slide 23: Commodities and Global Markets
CGM CAPITAL MARKETS FACING BUSINESS Commodities and Global Markets1 21% For personal use only Covering 25+ market segments, with 160+ products $A971m Deep markets experience Net profit 15% IPOs in ON FY16 10+ Energy No. 1 ANZ2 $A2.9b YEARS 20+ foreign exchange Agriculture, No. 4 US physical gas mark
Slide 24: Macquarie Capital
MACCAP CAPITAL MARKETS FACING BUSINESS Macquarie Capital 10% For personal use only Globally diversified with a core strength in real assets $A483m 417 transactions valued at $A159b No.1 inadvisory Infrastructure M&A Net profit 7% ON FY16 globally 1 $A1.2b No. 1 M&A transactions in ANZ2 No. 1 Technol
Slide 25: Business backed by strong funding and capital
Macquarie Group Limited 2017 Annual General Meeting macquarie.com FY17 Overview Overview of the result 1Q18 Update FY18 Outlook Appendices Business backed by strong funding and capital For personal use only MGL funded balance sheet APRA Basel III surplus capital6 Credit ratings 31 March 2017 31
Slide 26: 1Q18 Update
Macquarie Group Limited 2017 Annual General Meeting macquarie.com FY17 Overview Overview of the result 1Q18 Update FY18 Outlook Appendices 1Q18 Update 03 For personal use only Nicholas Moore Managing Director and Chief Executive Officer MACQUARIE 2017
Slide 27: 1Q18 Macquarie update
Macquarie Group Limited 2017 Annual General Meeting macquarie.com FY17 Overview Overview of the result 1Q18 Update FY18 Outlook Appendices 1Q18 Macquarie update For personal use only • Operating groups performing in line with expectations • 1Q18 operating group contribution1 up on pcp and down o
Slide 28: Annuity-style businesses
Macquarie Group Limited 2017 Annual General Meeting macquarie.com FY17 Overview Overview of the result 1Q18 Update FY18 Outlook Appendices Annuity-style businesses 1Q18 Update For personal use only FY17 contribution1 Activity during the quarter • AUM of $A460.8b down 4% on Mar 17 (MIRA EUM of $A
Slide 29: Capital markets facing businesses
Macquarie Group Limited 2017 Annual General Meeting macquarie.com FY17 Overview Overview of the result 1Q18 Update FY18 Outlook Appendices Capital markets facing businesses 1Q18 Update For personal use only FY17 contribution1 Activity during the quarter • Client hedging and trading opportunities
Slide 30: Funded balance sheet remains strong
Macquarie Group Limited 2017 Annual General Meeting macquarie.com FY17 Overview Overview of the result 1Q18 Update FY18 Outlook Appendices Funded balance sheet remains strong For personal use only Term liabilities cover term assets 31 Mar 16 31 Mar 17 30 Jun 17 $Ab $Ab $Ab 140 140 140 ST wholesa
Slide 31: Basel III capital position
Macquarie Group Limited 2017 Annual General Meeting macquarie.com FY17 Overview Overview of the result 1Q18 Update FY18 Outlook Appendices Basel III capital position For personal use only • APRA Basel III Group capital at Jun 17 of $A17.5b, Group capital surplus of $A4.0b1 • APRA’s proposal to e
Slide 32: Strong regulatory ratios
Macquarie Group Limited 2017 Annual General Meeting macquarie.com FY17 Overview Overview of the result 1Q18 Update FY18 Outlook Appendices Strong regulatory ratios For personal use only Bank Group (Jun 17) 17.5% 250% 7.0% 6.8% 14.0% 13.1% 6.0% 200% 5.0% 5.9% 10.5% 150% 163% 10.9% 4.0% 7.0% 3.0%
Slide 33: FY18 Outlook
Macquarie Group Limited 2017 Annual General Meeting macquarie.com FY17 Overview Overview of the result 1Q18 Update FY18 Outlook Appendices FY18 Outlook 04 For personal use only Nicholas Moore Managing Director and Chief Executive Officer MACQUARIE 2017
Slide 34: Factors impacting short-term outlook
Macquarie Group Limited 2017 Annual General Meeting macquarie.com FY17 Overview Overview of the result 1Q18 Update FY18 Outlook Appendices Factors impacting short-term outlook For personal use only FY18 combined net profit contribution from operating groups expected to be broadly in line with FY
Slide 35: Short-term outlook
Macquarie Group Limited 2017 Annual General Meeting macquarie.com FY17 Overview Overview of the result 1Q18 Update FY18 Outlook Appendices Short-term outlook For personal use only • We currently expect the FY18 combined net profit contribution1 from operating groups to be broadly in line with FY
Slide 36: Medium-term
Macquarie Group Limited 2017 Annual General Meeting macquarie.com FY17 Overview Overview of the result 1Q18 Update FY18 Outlook Appendices Medium-term For personal use only • Macquarie remains well positioned to deliver superior performance in the medium-term • Deep expertise in major markets •
Slide 37: Approximate business Basel III capital & ROE
Macquarie Group Limited 2017 Annual General Meeting macquarie.com FY17 Overview Overview of the result 1Q18 Update FY18 Outlook Appendices Approximate business Basel III Capital & ROE For personal use only 31 Mar 17 1 APRA Basel III Capital Approx. FY17 Return Approx. 11-Year Average 2 Operating
Slide 38: Medium-term
Macquarie Group Limited 2017 Annual General Meeting macquarie.com FY17 Overview Overview of the result 1Q18 Update FY18 Outlook Appendices Medium-term For personal use only Macquarie Asset Management (MAM) • Annuity-style business that is diversified across regions, products, asset classes and i
Slide 39: Appendix: A Glossary
Macquarie Group Limited 2017 Annual General Meeting macquarie.com FY17 Overview Overview of the result 1Q18 Update FY18 Outlook Appendices APPENDIX A Glossary For personal use only MACQUARIE 2017
Slide 40: Glossary
Macquarie Group Limited 2017 Annual General Meeting macquarie.com FY17 Overview Overview of the result 1Q18 Update FY18 Outlook Appendices Glossary For personal use only $A / AUD Australian Dollar BCBS Basel Committee on Banking Supervision $C / CAD Canadian Dollar BFS Banking and Financial Serv
Slide 41: Glossary
Macquarie Group Limited 2017 Annual General Meeting macquarie.com FY17 Overview Overview of the result 1Q18 Update FY18 Outlook Appendices Glossary For personal use only EUM Equity Under Management LNG Liquefied Natural Gas FX Foreign Exchange LP Limited Partner FY07 Full Year ended 31 March 200
Slide 42: Glossary
Macquarie Group Limited 2017 Annual General Meeting macquarie.com FY17 Overview Overview of the result 1Q18 Update FY18 Outlook Appendices Glossary For personal use only MSIS Macquarie Specialised Investment Solutions TMET Telecommunications, Media, Entertainment and Technology MSG Macquarie Sec
Slide 43: 2017 Annual General Meeting
Macquarie Group Limited For personal use only 2017 Annual General Meeting 27 July 2017