Macquarie Group, Ltd. · ASX:MQG
Macquarie — Shareholder Meeting (July 2021)
49 slides from Macquarie's shareholder meeting presentation, Jul 29, 2021
Slide 1: 2021 Annual General Meeting
For personal use only 2021 Annual General Meeting Macquarie Group Limited 29 July 2021 1
Slide 2: Disclaimer
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 information about Macquarie’s (MGL and its subsidiaries) activities current as at the date of this presentation. This information is give
Slide 3: Agenda
For personal use only Agenda 01 02 03 Chair’s Update Overview of 1Q22 Update FY21 04 05 06 FY22 Outlook Formal Glossary Business 3
Slide 4: Chair's Update
For personal use only Chair's Update Peter Warne Chairman 4
Slide 5: What We Stand For
What We Stand For For personal use only 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 5 5
Slide 6: Empowering people to innovate and invest for a better future
Chair's Update Overview of FY21 1Q22 Update FY22 Outlook Formal Business Glossary Empowering people to innovate and invest for a better future For personal use only While we are focused on addressing immediate needs, we are equally committed to our ongoing responsibilities to all stakeholders: While
Slide 7: Macquarie's response to COVID-19
Chair's Update Overview of FY21 1Q22 Update FY22 Outlook Formal Business Glossary Macquarie’s response to COVID-19 For personal use only Employees Clients Portfolio Companies Community ● Gradual return to office commenced in 90% of ● Enhanced client support and lending relief ● Ongoing work with MIR
Slide 8: Financial performance
Chair's Update Overview of FY21 1Q22 Update FY22 Outlook Formal Business Glossary Financial performance For personal use only Operating income FY21 Profit FY21 $A12,774m $A3,015m $Am $Am 14,000 4 % 3,000 10 % ON FY20 ON FY20 10,000 2,000 6,000 1,000 FY17 FY18 FY19 FY20 FY21 FY17 FY18 FY19 FY20 FY21
Slide 9: Final dividend
Chair's Update Overview of FY21 1Q22 Update FY22 Outlook Formal Business Glossary Final dividend For personal use only 2H21 Ordinary Dividend FY21 Ordinary Dividend $A3.35 $A4.70 FROM FROM $A1.80 $A4.30 (40% franked) (40% franked) (40% franked) IN 2H20 (40% franked) IN FY20 Dividend policy Payout Ra
Slide 10: Risk culture and conduct
Chair's Update Overview of FY21 1Q22 Update FY22 Outlook Formal Business Glossary Risk culture and conduct For personal use only ● Macquarie’s long-established risk culture and our management of conduct risk is well embedded across all parts of the organisation. Key aspects include: − Primary respon
Slide 11: Risk culture and conduct in practice
Chair's Update Overview of FY21 1Q22 Update FY22 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 together to maintain our strong risk culture and conduct R
Slide 12: Environmental, Social and Governance (ESG)
Chair's Update Overview of FY21 1Q22 Update FY22 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 people and the environment in which we operate Environm
Slide 13: Environmental, Social and Governance
Chair's Update Overview of FY21 1Q22 Update FY22 Outlook Formal Business Glossary Environmental, Social and Governance For personal use only Environmental Climate Environmental and Sustainability Client People Business conduct Macquarie and social risk change social financing in direct experience an
Slide 14: Driving global climate solutions
Chair's Update Overview of FY21 1Q22 Update FY22 Outlook Formal Business Glossary Driving global climate solutions Highlights of activities during FY21 Raised €1.6 billion from investors For personal use only for renewable energy investment Funded 49 MW in new energy- from-waste developments Made £1
Slide 15: Our commitment to net zero
Chair's Update Overview of FY21 1Q22 Update FY22 Outlook Formal Business Glossary Our commitment to net zero For personal use only As global commitments to tackling climate change accelerate, and in keeping with our culture of innovation and evolution, we are strengthening our own commitment on clim
Slide 16: Diversity & Inclusion
Chair's Update Overview of FY21 1Q22 Update FY22 Outlook Formal Business Glossary Diversity & Inclusion For personal use only The diversity of our people is one of our greatest strengths. An inclusive workplace enables us to embrace diversity to deliver more innovative and sustainable solutions for
Slide 17: Macquarie Group Foundation
Chair's Update Overview of FY21 1Q22 Update FY22 Outlook Formal Business Glossary Macquarie Group Foundation For personal use only The Macquarie Group Foundation matches staff giving and fundraising, and supports volunteering, skills sharing and non-profit board service Macquarie COVID-19 donation f
Slide 18: Board elections and retirements
Chair's Update Overview of FY21 1Q22 Update FY22 Outlook Formal Business Glossary Board elections and retirements For personal use only Directors seeking election Directors seeking re-election FY21 Director retirements to the Board to the Board Mike Roche Rebecca McGrath Glenn Stevens Peter Warne Go
Slide 19: Overview of FY21
For personal use only Overview of FY21 Shemara Wikramanayake Managing Director and Chief Executive Officer 19
Slide 20: Years of unbroken profitability
Chair's Update Overview of FY21 1Q22 Update FY22 Outlook Formal Business Glossary 52 years of unbroken profitability For personal use only $Ab 3.0 Total Earnings Dividends MSCI World MSCI 10,000 Performance shareholder per share per share Diversified Capital World $A3,015 million (ASX: MQG) return2
Slide 21: FY21 result: $A3,015m up 10% on FY20
Chair's Update Overview of FY21 1Q22 Update FY22 Outlook Formal Business Glossary FY21 result: $A3,015m up 10% on FY20 For personal use only 2H21 1H21 2H21 v FY21 FY20 FY21 v $Am $Am 1H21 $Am $Am FY20 Net operating income 7,255 5,519 31% 12,774 12,325 4% Total operating expenses (4,601) (4,266) 8% (
Slide 22: FY21 net profit contribution from Operating Groups
Chair's Update Overview of FY21 1Q22 Update FY22 Outlook Formal Business Glossary FY21 net profit contribution from Operating Groups $A6,097m up 12% on FY20 For personal use only Annuity-style businesses Markets-facing businesses $A3,314m $A2,783m 4% 39% ON FY20 ON FY20 Non-Banking Group Macquarie A
Slide 23: Diversification by region
Chair's Update Overview of FY21 1Q22 Update FY22 Outlook Formal Business Glossary Diversification by region For personal use only International income 68% of total income1 Total staff2 16,459, International staff 56% of total Americas EMEA Asia Australia3 34% of total income 23% of total income 11%
Slide 24: Macquarie Asset Management
Chair's Update Overview of FY21 1Q22 Update FY22 Outlook Formal Business Glossary Macquarie Asset FY21 Private Public Management awards & rankings Markets8 Investments9 For personal use only Actively manages funds for investors across multiple asset classes #1 Infrastructure Investment $A142.0b 5% o
Slide 25: Banking and Financial Services
Chair's Update Overview of FY21 1Q22 Update FY22 Outlook Formal Business Glossary Banking and FY21 Financial Services awards For personal use only Macquarie’s retail banking and $A67.0b 29% on Mar 20 $A80.7b 26% on Mar 20 Home loan portfolio Total BFS deposits2 financial services business $A10.2b 13
Slide 26: Commodities and Global Markets
Chair's Update Overview of FY21 1Q22 Update FY22 Outlook Formal Business Glossary Commodities and FY21 Strong underlying client business Global Markets awards & rankings Commodity Financial Markets For personal use only Provides clients with access to markets, Markets Foreign exchange, interest rate
Slide 27: Macquarie Capital
Chair's Update Overview of FY21 1Q22 Update FY22 Outlook Formal Business Glossary Macquarie Capital FY21 Advisory and Infrastructure and awards & Capital Solutions Energy Group rankings For personal use only Advises and invests alongside clients and Leading market position in ANZ for Continued focus
Slide 28: Approximate business Basel III Capital and ROE
Chair's Update Overview of FY21 1Q22 Update FY22 Outlook Formal Business Glossary Approximate business Basel III Capital and ROE For personal use only 31 Mar 21 APRA Basel III Capital1 Approx. FY21 Return on Approx. 15-year Average Operating Group @ 8.5% ($Ab) Ordinary Equity2 Return on Ordinary Equ
Slide 29: Business backed by strong funding and capital
Chair's Update Overview of FY21 1Q22 Update FY22 Outlook Formal Business Glossary Business backed by strong funding and capital For personal use only MGL funded balance sheet APRA Basel III capital position7 Credit ratings 31 Mar 21 31 Mar 21 $Ab 180 ST wholesale issued paper 7% Other debt maturing
Slide 30: 1Q22 Update
For personal use only 1Q22 Update Shemara Wikramanayake Managing Director and Chief Executive Officer 30
Slide 31: 1Q22 Overview
Chair's Update Overview of FY21 1Q22 Update FY22 Outlook Formal Business Glossary 1Q22 For personal use only Overview Improved trading conditions with 1Q22 operating group contribution significantly up on the prior corresponding period (pcp) (1Q21) which had mixed trading conditions ● Macquarie’s an
Slide 32: 1Q22 Overview: Annuity-style businesses
Chair's Update Overview of FY21 1Q22 Update FY22 Outlook Formal Business Glossary 1Q22 Overview Annuity-style businesses For personal use only Macquarie Asset Management Banking and Financial Services ~34% FY21 contribution1 ~13% FY21 contribution1 • AUM2 of $A693.2 at Jun 21, up 23% on Mar 21, pred
Slide 33: 1Q22 Overview: Markets-facing businesses
Chair's Update Overview of FY21 1Q22 Update FY22 Outlook Formal Business Glossary 1Q22 Overview Markets-facing businesses For personal use only Commodities and Global Markets Macquarie Capital ~42% FY21 contribution1 ~11% FY21 contribution1 ● Favourable market conditions contributed to strong result
Slide 34: Funded balance sheet remains strong
Chair's Update Overview of FY21 1Q22 Update FY22 Outlook Formal Business Glossary Funded balance sheet remains strong For personal use only Term liabilities exceed term assets 31 Mar 21 30 Jun 21 $Ab $Ab 210 210 Total customer deposits7 ST wholesale issued paper 10% 180 ST wholesale issued paper 7%
Slide 35: Basel III capital position
Chair's Update Overview of FY21 1Q22 Update FY22 Outlook Formal Business Glossary Basel III capital position ● APRA Basel III Group capital at Jun 21 of $A26.4b; Group capital surplus of $A7.4b1, 2 For personal use only ● APRA Basel III Level 2 CET1 ratio: 12.1%; Harmonised Basel III Level 2 CET1 ra
Slide 36: Business capital requirements
Chair's Update Overview of FY21 1Q22 Update FY22 Outlook Formal Business Glossary Business capital requirements1 For personal use only 1Q22 key drivers $Ab MAM 20 $A3.8b increase ● Includes fund underwriting activity overall 0.2 $A19.0b offset by divestments (including 19 0.2 0.6 Waddell & Reed’s we
Slide 37: Capital management update
Chair's Update Overview of FY21 1Q22 Update FY22 Outlook Formal Business Glossary Capital management update For personal use only Dividend Payout Policy ● Macquarie has seen strong capital deployment over an extended period, with $A3.8b growth in capital requirements across all four operating groups
Slide 38: Strong regulatory ratios
Chair's Update Overview of FY21 1Q22 Update FY22 Outlook Formal Business Glossary Strong regulatory ratios For personal use only Bank Group Level 2 Ratios (Jun 21) 125% 17.5% 7.5% 190% 15.5% 120% 122% 5.9% 171% 14.0% 6.0% 160% 115% 12.1% 5.2% 110% 10.5% 4.5% 130% 105% 7.0% 3.0% 100% 100% 95% 3.5% 1.
Slide 39: Regulatory update
Chair's Update Overview of FY21 1Q22 Update FY22 Outlook Formal Business Glossary Regulatory update Australia APRA is in the process of implementing changes to a number of regulatory standards1 For personal use only ● ● APRA released a letter on 21 Jul 21 outlining proposed policy settings for the B
Slide 40: FY22 Outlook
For personal use only FY22 Outlook Shemara Wikramanayake Managing Director and Chief Executive Officer 40
Slide 41: Short-term outlook
Chair's Update Overview of FY21 1Q22 Update FY22 Outlook Formal Business Glossary Short-term outlook For personal use only Factors impacting short-term outlook Annuity-style businesses Markets-facing businesses Non-Banking Group Macquarie Asset Management (MAM) Macquarie Capital (MacCap) ● Excluding
Slide 42: Short-term outlook factors
Chair's Update Overview of FY21 1Q22 Update FY22 Outlook Formal Business Glossary Short-term outlook For personal use only The range of factors that may influence our short-term outlook include: ● The duration of COVID-19, speed of the global economic recovery and extent of government support for ec
Slide 43: Medium-term outlook
Chair's Update Overview of FY21 1Q22 Update FY22 Outlook Formal Business Glossary Medium-term outlook For personal use only Macquarie remains well-positioned to deliver superior performance in the medium term Deep expertise in major markets Build on our strength in business and geographic diversity
Slide 44: Medium term
Chair's Update Overview of FY21 1Q22 Update FY22 Outlook Formal Business Glossary Medium term For personal use only Annuity-style businesses Markets-facing businesses Non-Banking Group Macquarie Asset Management (MAM) Macquarie Capital (MacCap) ● Leading specialist global asset manager, well-positio
Slide 45: Formal Business
For personal use only Formal Business Peter Warne Chairman 45
Slide 46: 2021 Annual General Meeting
For personal use only 2021 Annual General Meeting Macquarie Group Limited 29 July 2021 46
Slide 47: Glossary
For personal use only Glossary 47
Slide 48: Glossary
Chair's Update Overview of FY21 1Q22 Update FY22 Outlook Formal Business Glossary Glossary For personal use only $A / AUD Australian Dollar DRP Dividend Reinvestment Plan $US / USD United States Dollar ECAM Economic Capital Adequacy Model £ / GBP Pound Sterling ECM Equity Capital Markets € Euro EMEA
Slide 49: Glossary
Chair's Update Overview of FY21 1Q22 Update FY22 Outlook Formal Business Glossary Glossary For personal use only M&A Mergers and Acquisitions MW Mega Watt MacCap Macquarie Capital NGLs Natural gas liquids MAM Macquarie Asset Management NPAT Net Profit After Tax MBL Macquarie Bank Limited NPC Net Pro