Macquarie Group, Ltd. · ASX:MQG

Macquarie — Investor Presentation (February 2010)

90 slides from Macquarie's investor presentation, Feb 9, 2010

1. Slide 1: Operational Briefing

   Macquarie Group Limited For personal use only Operational Briefing Presentation to Investors and Analysts 9 February 2010

2. Slide 2: Disclaimer

   Disclaimer For personal use only Disclaimer The material in this presentation has been prepared by Macquarie Group Limited ABN 94 122 169 279 (“Macquarie”) and is general background information about Macquarie’s activities current as at the date of this presentation. This information is given in sum

3. Slide 3: Agenda

   Agenda For personal use only 9.40 – 10.10 Update since the Interim Result – Nicholas Moore 10.10 – 10.30 Macquarie Securities Group – Roy Laidlaw 10.30 – 10.50 Morning tea 10.50 – 11.10 Macquarie Capital Group – Michael Carapiet 11.10 – 11.30 Banking and Financial Services Group – Peter Maher 11.30

4. Slide 4: Update since the Interim Result Announcement

   For personal use only Update since the Interim Result Announcement Nicholas Moore Managing Director and Chief Executive Officer Macquarie Group Limited Operational Briefing 9 February 2010 – Presentation to Investors and Analysts

5. Slide 5: Overview

   Overview For personal use only ƒ Economic conditions continue to trend back to normal ƒ As foreshadowed in October, strong market conditions experienced in 1H10 have moderated in certain areas including Australian ECM and credit businesses ⎯ Dec qtr total ASX market turnover down 12% on Sep qtr; Dec

6. Slide 6: Overview

   Overview For personal use only ƒ Organic growth initiatives continuing across the Group ⎯ MSG – 16 director level hires1 in Dec qtr, predominantly in cash equities ⎯ MacCap – 13 director level hires1 in Dec qtr across a range of regions but predominately offshore, expanded product offering with Nort

7. Slide 7: Overview

   Overview For personal use only ƒ Regulation ⎯ Dec 09 APRA discussion paper outlining proposed changes to prudential standards to implement Basel II proposal (Jul 09) to increase capital for market risk. Implementation Jan 11 ⎯ Dec 09 Basel II proposed changes outlined in “Strengthening the resilienc

8. Slide 8: More than 13,200 staff in countries

   More than 13,200 staff in 28 countries1 For personal use only Approximately 14,400 staff including Delaware and Blackmont acquisitions2 EMEA ASIA PACIFIC AMERICAS 1,456 staff 2,267 staff 2,414 staff Beijing Seoul Tokyo Shanghai Calgary Taipei Vancouver Hong Kong Hsinchu Seattle Toronto Dublin Stockh

9. Slide 9: Assets under management of $A342b

   Assets under management of $A342b1 For personal use only ƒ Dec 09 AUM decreased by $A18b mainly due to the internalisation of MAp and the strengthening of the $A since Sep 09 ƒ Significant increase in Dec 09 pro-forma AUM relating to Delaware acquisition by Macquarie Funds Group $Ab 400 $A342b1 Prof

10. Slide 10: Strong funding and balance sheet position

    Strong funding and balance sheet position For personal use only ƒ Short-term wholesale issued paper continues to be a small portion of overall funding sources, 7% at Dec 09 ƒ Total retail deposits increased to $A14.5b at Dec 09 from $A13.9b at Sep 09 ƒ Removal of Government guarantee was anticipated

11. Slide 11: Funded balance sheet remains strong

    Funded balance sheet remains strong For personal use only As foreshadowed, surplus cash and liquid assets are being deployed Macquarie Group Limited $Ab 31 March 2009 $Ab 30 September 2009 $Ab 31 December 2009 80 80 80 ST wholesale 4.8x ST wholesale issued paper (7%) issued paper 3.9x ST wholesale e

12. Slide 12: Total capital surplus of $A4.5b

    Total capital surplus of $A4.5b Including Delaware acquisition proforma capital surplus of $A4.0b1 For personal use only ƒ Total capital of $A11.9b at 31 Dec 09, a $A4.5b buffer of capital in excess of the Group’s minimum regulatory capital requirements ƒ Strong Banking Group capital ratios at 31 De

13. Slide 13: Macquarie model – focus over the medium term

    Macquarie model – focus over the medium term For personal use only ƒ Client driven business ⎯ Main business focus is providing products and services to clients ⎯ Trading businesses focussed on client transactions ⎯ Minimal proprietary trading ƒ Alignment of interests with shareholders, investors, st

14. Slide 14: Outlook

    Outlook For personal use only ƒ Uncertain markets make short term forecasting difficult however we currently estimate 2H10 profit to be broadly in line with 1H10 profit including expected one-off items such as ⎯ Listed fund initiatives ⎯ Accounting for deferred remuneration ⎯ Acquisition & integrati

15. Slide 15: Appendix: Additional information – Dec Capital

    For personal use only Appendix Additional information – 31 Dec 09 Capital Macquarie Group Limited Operational Briefing 9 February 2010 – Presentation to Investors and Analysts

16. Slide 16: Macquarie Group regulatory capital

    Macquarie Group regulatory capital Surplus calculation For personal use only $Am Macquarie Group eligible capital: Banking Group Gross Tier 1 capital 7,035 Non-Bank eligible capital 4,914 Eligible capital 11,949 (a) Macquarie Group capital requirement: Banking Group contribution Risk-weighted assets

17. Slide 17: Macquarie Group regulatory capital

    Macquarie Group regulatory capital Banking Group contribution For personal use only Risk weighted Tier 1 Capital assets Deductions Requirement1 $Am $Am $Am Credit and equity risk On balance sheet 27,481 1,924 Off balance sheet 9,670 677 Credit and equity risk subtotal 37,151 2,601 Market risk 2,952

18. Slide 18: Macquarie Group regulatory capital

    Macquarie Group regulatory capital Non-Banking Group framework For personal use only ƒ APRA has specified a regulatory capital framework for MGL ƒ A dollar capital surplus is produced; no capital ratio calculation is specified ƒ APRA has approved Macquarie’s Economic Capital Adequacy Model (ECAM) fo

19. Slide 19: Appendix: Additional information – Delaware

    For personal use only Appendix Additional information – Delaware Macquarie Group Limited Operational Briefing 9 February 2010 – Presentation to Investors and Analysts

20. Slide 20: Delaware acquisition

    Delaware acquisition For personal use only ƒ Completed acquisition of Delaware Investments, a US-based diversified asset management firm on 4 Jan 20101 ƒ Over 20 Macquarie staff now based within Delaware teams in Philadelphia ƒ First joint mutual fund launched in the US - Delaware Macquarie Global I

21. Slide 21: Appendix: Changes to Remuneration Policy

    For personal use only Appendix Additional information – Changes to Remuneration Policy Macquarie Group Limited Operational Briefing 9 February 2010 – Presentation to Investors and Analysts

22. Slide 22: Changes to remuneration policy

    Changes to remuneration policy For personal use only As disclosed in the Macquarie Group Limited Explanatory Memorandum for the General Meeting held on 17 Dec 09, changes were proposed to the Macquarie Group remuneration policy to: ƒ Increase the level of deferred share based payments to Executive D

23. Slide 23: Operational Briefing February 10

    For personal use only Macquarie Group Limited Operational Briefing 9 February 2010 – Presentation to Investors and Analysts

24. Slide 24: Macquarie Securities Group

    For personal use only Macquarie Securities Group Roy Laidlaw, Group Head Macquarie Group Limited Operational Briefing - 9 Feb 2010 Presentation to Investors and Analysts

25. Slide 25: Macquarie Securities Group – today

    Macquarie Securities Group – today For personal use only Macquarie Securities Group Derivatives DeltaOne Trading Cash ƒ Institutional / retail derivatives ƒ Sales ƒ Arbitrage trading ƒ Sales trading ƒ Synthetic products ƒ Execution ƒ Structured Equity Finance ƒ Research ƒ Global Securities Finance ƒ

26. Slide 26: Macquarie Securities Group – today

    Macquarie Securities Group – today For personal use only Over 1,600 staff1 ƒ Top tier, highly profitable, integrated, global institutional securities company ƒ Full service in Asia Pacific and South Africa and specialised in the rest of the world EMEA ASIA PACIFIC AMERICAS 281 staff 654 staff 368 st

27. Slide 27: Australia / New Zealand

    Australia / New Zealand For personal use only Long term organic build to be top rated full service broker ƒ 338 staff1 FY10 Expected Contribution ƒ Australia ⎯ No. 1 ranked broker, 3Q10 market share 10.9%2 Australia 28% ⎯ No. 1 listed warrants, 3Q10 market share 52.5%3 ⎯ No. 1 overall research and s

28. Slide 28: Asia

    Asia For personal use only Opportunistic acquisition, good integration and build to full service broker ƒ 642 staff1 FY10 Expected Contribution ƒ 1997 organic build of warrants business in HK ƒ 2004 acquired ING’s Asian cash equities business (428 people) ƒ 2005 commenced Indian business (29 people,

29. Slide 29: South Africa

    South Africa For personal use only Successful acquisition, integration and build out to full service broker ƒ 48 staff1 FY10 Expected Contribution ƒ 2006 acquired 50% of First South Securities (40 South Africa people) 4% ƒ 2007 organic build of Derivatives DeltaOne trading ƒ 30% secondary market com

30. Slide 30: Canada

    Canada For personal use only Successful acquisition and build out ƒ 106 staff1 FY10 Expected Contribution ƒ Orion Securities acquisition, 1 Dec 07 ƒ Build out of research product (REITS, Canada 5% infrastructure, financials) ƒ Growth in market share ƒ Tristone (1 Sep 09) acquisition to build out ene

31. Slide 31: Europe

    Europe For personal use only Europe is a key component of global broker aspirations ƒ 233 staff1 FY10 Expected Contribution ƒ 2006 started structured equity finance business Europe ƒ 2008 commenced Cash greenfield built around 5 key 6% sectors (property, infrastructure, resources & commodities, ener

32. Slide 32: Americas (ex Canada)

    Americas (ex Canada) For personal use only US is a key component of global broker aspirations ƒ 262 staff1 FY10 Expected Contribution Americas ƒ 2004 derivatives trading commenced 3% ƒ 2008 commenced Cash greenfield built around 5 key sectors (property, infrastructure, resources & commodities, energ

33. Slide 33: Tristone acquisition

    Tristone acquisition For personal use only ƒ Completed acquisition of Tristone on 1 Sep 09 Tristone Research Stock Coverage – 143 stocks ƒ Independent energy advisory firm providing sales, 15 trading and research services Canada ƒ 49 MSG people1 US Europe ƒ Locations: Canada, US and Europe ƒ Added 1

34. Slide 34: Fox-Pitt Kelton Cochran Caronia Waller (FPK) acquisition

    Fox-Pitt Kelton Cochran Caronia Waller (FPK) For personal use only acquisition FPK Research Stock Coverage – 393 stocks2 ƒ Completed FPK acquisition effective 30 Nov 09 ƒ FIG focused firm with a leading FIG sales and trading US platform researching approximately 400 stocks globally Europe ƒ 141 MSG

35. Slide 35: Sal. Oppenheim – Equity Derivatives and Trading

    Sal. Oppenheim – Equity Derivatives and Trading For personal use only ƒ 23 Dec 09 reached agreement to acquire the equity derivatives and trading business of the German private bank Sal. Oppenheim ƒ Sal. Oppenheim ⎯ One of Europe’s oldest banking groups ( 200+ year history ) ⎯ Excess of 6,000 produc

36. Slide 36: Sal. Oppenheim – Cash

    Sal. Oppenheim – Cash For personal use only ƒ Original proposal: To acquire the equity derivatives and trading business and cash equities business ƒ Accepted for the equity derivatives and trading business but not for cash equities business ƒ Recently requested to submit a new price for the cash equ

37. Slide 37: Global research coverage

    Global research coverage For personal use only Stock Coverage - Global 3,000 2,500 122 130 2,500 372 1,747 129 2,000 1,500 1,000 500 0 Macquarie Tristone FPK Sal Oppenheim Macquarie Total coverage coverage - pre Organic acquisitions Growth Acquisitions and organic growth will take MSG coverage to ar

38. Slide 38: Global research coverage

    For personal use only 0 500 1000 1500 2000 2500 3000 3500 4000 BOFA MERRILL LYNCH UBS GOLDMAN SACHS & CO. J.P.MORGAN CREDIT SUISSE CITI DEUTSCHE BANK SECURITIES 1 MACQUARIE+ACQUISITIONS+GROWTH Global research coverage MORGAN STANLEY Source: IBES research coverage as at 31 Dec 09. 1. Macquarie covera

39. Slide 39: Global research coverage

    Global research coverage For personal use only Stock Coverage 100% 90% 80% 70% % Market Cap 60% 50% 40% 30% 20% 10% 0% Canada Europe US Australia NZ South Africa HK/China India Indonesia Japan Korea Malaysia Philippines Singapore Taiwan Thailand MSG Tristone FPK Macquarie Growth Sal. Oppenheim Sourc

40. Slide 40: Research specialist

    Research specialist For personal use only ƒ Global specialist ƒ Sector specialists – 42% MSCI World Index1 ⎯ Energy ⎯ Property ⎯ Infrastructure ⎯ Quant ⎯ Resources & Commodities ⎯ FIG (Including FPK) ƒ Geographic specialists ⎯ Australia ⎯ Asia 1. Market Cap 40

41. Slide 41: Macquarie Securities Group – Opportunity

    Macquarie Securities Group – Opportunity For personal use only Global Commission Pool 2009 $US25b (annualised Jan-Sep 09 number) (estimated) Broker Commissions (annualised Jan-Sep 09 number) (estimated) $US2.0b $US2.0b $US1.5b MSG estimated to be just outside $US1.0b top 10 for $US0.8b commissions i

42. Slide 42: What next?

    What next? For personal use only ƒ Integration ƒ Potential for a few more acquisitions arising from the GFC ƒ Backfill product range into each region where appropriate ⎯ Institutional derivatives ⎯ DeltaOne Trading ⎯ Warrants / structured products ƒ Client recognition in execution services – monetis

43. Slide 43: Summary

    Summary For personal use only ƒ Vision is morphing so that on a medium term view we are seen increasingly as a global broker with strong Asia Pacific foundations ƒ Improved market conditions should provide good growth opportunities for the Cash Division ƒ Outlook for Derivatives DeltaOne Trading is

44. Slide 44: Operational Briefing - Feb 2010

    For personal use only Macquarie Group Limited Operational Briefing - 9 Feb 2010 Presentation to Investors and Analysts

45. Slide 45: Macquarie Capital

    For personal use only Macquarie Capital Michael Carapiet, Group Head Macquarie Group Limited Operational Briefing - 9 Feb 2010 Presentation to Investors and Analysts

46. Slide 46: Global presence

    Global presence For personal use only ƒ 2,300+ staff1 across the globe EMEA ASIA AMERICAS 20% of staff 20% of staff 30% of staff Beijing Seoul Tokyo Shanghai Calgary Taipei Vancouver Dublin Stockholm Hong Kong Toronto San Francisco Montreal London Amsterdam Manila Chicago Paris Frankfurt Bangkok Los

47. Slide 47: Our business

    Our business For personal use only Macquarie Capital overview 6 core sectors Financial Institutions Debt Structuring Equity Capital & Distribution Markets Industrials Infrastructure & Utilities Macquarie Investments Capital (Principal M&A Real Estate & Funds) Governance Separation Resources Funds Ma

48. Slide 48: Changes to our business

    Changes to our business For personal use only Since 2007 our business has undergone significant change 2007 2007 MacCap MacCap Advisers Funds Macquarie Real Estate MacCap Capital MacCap Group Finance Securities MacCap Products 48

49. Slide 49: Changes to our business

    Changes to our business For personal use only Since 2007 our business has undergone significant change Today MacCap MacCap Advisers Macquarie Funds Capital 49

50. Slide 50: Income diversity

    Income diversity For personal use only Estimated Estimated FY10 Revenue FY10 Revenue by Geography1 Type1 EMEA 26% Funds Advisory, Debt, Australia & NZ Management ECM and Principal 47% 50% 50% Americas 15% Asia 12% 1. Estimate for Financial Year ending 31 Mar 10 50

51. Slide 51: Market changes = opportunity

    Market changes = opportunity For personal use only ƒ Worst global recession since World War II ƒ Fundamental changes to competitive landscape – particularly in North America, the UK and Europe ƒ Government involvement in global financial markets as a result of market turmoil ƒ Changes to regulatory

52. Slide 52: How are we adapting?

    How are we adapting? For personal use only Advisory – strong push globally in past 12-18 months ƒ 80+ new director-level hires since 1 Jan 09 ORGANIC GROWTH ƒ Expanding our sector knowledge and relationships ƒ Fox-Pitt Kelton Cochran Caronia Waller (FPK) – transformation of global financial institut

53. Slide 53: How are we adapting?

    How are we adapting? For personal use only Funds - strategy announced Mar 09 ƒ Maximise unitholder value by closing the gap between listed security prices and underlying valuations ƒ Macquarie Infrastructure Group restructure into two separately listed entities ƒ Macquarie Media Group capital raisin

54. Slide 54: Measuring our performance

    Measuring our performance For personal use only Advisory Region / Metric M&A League Table ECM League Table No. & Value of Deals Ranking1 Ranking2 Advised FY10YTD Global 13th n/a 272 deals / $A79b 233 deals / $A171b pcp3 Australia & NZ 1st 2nd 78 deals / $A43b vs (by deal number) 75 deals / $A100b pc

55. Slide 55: Measuring our performance

    Measuring our performance For personal use only Funds ƒ Macquarie specialised managed funds represents 12%1 of Macquarie Group’s operating income ƒ 80% of Macquarie Capital Funds EUM is unlisted (20% listed) Activity Measure Initiatives ƒ Raised $A2.2b2 of equity FY10 YTD ƒ Regional expansion: India

56. Slide 56: New fund initiatives

    New fund initiatives For personal use only Macquarie Mexican Infrastructure Fund (MMIF) ƒ Investment Mandate ⎯ Infrastructure assets located in Mexico in which the fund would have significant influence over management, operations and strategic direction ƒ Fund Term: 10 years ƒ Parallel vehicles: Unl

57. Slide 57: Risk management

    Risk management For personal use only “Ownership”: Risk is everyone’s responsibility ƒ Principal Investments team within Macquarie Capital assesses potential principal transactions (in addition to review by a centralised Risk Management function) Principal Investments Our approach to principal inves

58. Slide 58: Outlook

    Outlook For personal use only Macquarie Capital Advisers ƒ FY10 expected to be higher than FY09 ƒ Increased corporate activity points to signs of a potential economic recovery in the US ƒ Growth in European activities expected over the medium term ƒ Expect reasonable activity in Asian, Canadian and

59. Slide 59: Summary

    Summary For personal use only ƒ Diverse income streams ⎯ Predominantly fee for service ⎯ Diversity across geography and advisory industry group ⎯ Predictable and recurring funds management income ƒ Improving capability and product offerings in existing markets through acquisitions and organic growth

60. Slide 60: Operational Briefing February 10

    For personal use only Macquarie Group Limited Operational Briefing 9 February 2010 – Presentation to Investors and Analysts

61. Slide 61: Banking and Financial Services

    For personal use only Banking and Financial Services Peter Maher, Group Head Macquarie Group Limited Operational Briefing - 9 Feb 2010 Presentation to Investors and Analysts

62. Slide 62: Banking and Financial Services (BFS)

    Banking and Financial Services (BFS) For personal use only Offer integrated banking and wealth management solutions to target client segments and markets Australia / NZ focus International focus Macquarie Macquarie Macquarie Macquarie Business Adviser Global Europe BFS Direct Private Wealth Banking

63. Slide 63: Global presence

    Global presence Over 3,100 staff including recent Blackmont acquisition1 For personal use only BFS has new businesses in attractive international markets leveraging our core domestic offerings EMEA ASIA PACIFIC AMERICAS 69 staff 115 staff 581 staff AUSTRALIA 2,378 staff 1. Staff numbers at 31 Dec 09

64. Slide 64: Our Growth – Assets under administration

    Our Growth – Assets under administration1 For personal use only BFS focus on annuity revenue provides consistency of earnings 140 120 116 107 28% 98 100 R C AG $A billions 80 71 60 55 43 40 24 21 20 - 2 FY03 FY04 FY05 FY06 FY07 FY08 FY09 FY10 YTD Assets under administration includes assets under man

65. Slide 65: Our Growth – Clients and advisors

    Our Growth – Clients and advisors For personal use only We service a portfolio of approx 930,000 predominantly high net worth clients that is growing on average 10,000 clients per month 1,000,000 800 900,000 700 No. of advisers 800,000 No. of clients 600 700,000 600,000 500 500,000 400 400,000 300 3

66. Slide 66: Leading products and services

    Leading products and services For personal use only Our leading products remain very competitive and contribute 80% of BFS revenue ƒ Wrap – Net inflows and improving equity markets resulted in WRAP FUA growing to $A22.2b1, up 23% on pcp and 3% on 2Q10 ƒ Cash – Total retail deposits of $A14.5b1 up 23

67. Slide 67: New businesses

    New businesses For personal use only Our investments in new Domestic and International businesses will accelerate our next wave of growth ƒ New domestic businesses − Macquarie Edge − Macquarie Life − Macquarie Pastoral ƒ New international businesses − Blackmont Capital acquisition − Canada 67

68. Slide 68: Macquarie Edge

    Macquarie Edge For personal use only Macquarie Edge extends the Macquarie brand reach to capture next generation of self-directed investors ƒ Launched new online trading platform Macquarie Edge (www.macquarie.com.au/edge) in Aug 09 ƒ Client acquisition strategy targeting self-directed online investo

69. Slide 69: Macquarie Life – Insurance

    Macquarie Life – Insurance For personal use only Macquarie Insurance goal to be a substantial competitor in the Australian life insurance market ƒ Macquarie Life manufactures products, distributed through the IFA channel ƒ Aim to broaden distribution by developing alliances with other organisations

70. Slide 70: Macquarie Pastoral

    Macquarie Pastoral For personal use only Macquarie Pastoral Fund offers investors the opportunity to directly invest in Australian properties producing beef cattle and sheep ƒ Launched in Jan 07 and raised over $A500m FUM1, up 69% on pcp ƒ Rising urbanisation and increasing disposable income in Asia

71. Slide 71: Blackmont Capital

    Blackmont Capital For personal use only The Blackmont acquisition is another step in BFS’s strategy to become a global provider of retail financial services ƒ The acquisition of Blackmont Capital for Advisers and locations $C93.3m, closed on 31 Dec 091 ƒ Blackmont Capital is a full service retail br

72. Slide 72: Canada

    Canada For personal use only BFS is building a wealth management and business banking capability to target segments in the Canadian market Canada Strategic Priorities North America Business Lines ƒ Pursue our target segments Advice Business ⎯ Advice ⎯ Business Blackmont Investment Premium Mortgages

73. Slide 73: Summary

    Summary For personal use only ƒ Our leading businesses have performed well FY10 YTD ƒ BFS focus on annuity revenue provides consistency of earnings ƒ We have a number of start-up businesses in Australia which we are investing in to become our core businesses of tomorrow ƒ Strong focus on internation

74. Slide 74: Operational Briefing February 10

    For personal use only Macquarie Group Limited Operational Briefing 9 February 2010 – Presentation to Investors and Analysts

75. Slide 75: Corporate and Asset Finance

    For personal use only Corporate and Asset Finance Garry Farrell, Group Head Macquarie Group Limited Operational Briefing - 9 February 2010 Presentation to Investors and Analysts

76. Slide 76: CAF – Snapshot

    CAF – Snapshot For personal use only ƒ Corporate and Asset Finance (“CAF”) provides finance (since 1970) and asset management solutions (since mid 1990’s) to retail, corporate and government customers in 36 countries ƒ Customer solutions are for: ⎯ Shorter life cycle assets ⎯ Motor vehicles, informa

77. Slide 77: Global presence

    Global presence Over 600 staff1 For personal use only Our strong global investment in people has given us the capability to deliver value to our customers in multiple markets around the world EMEA ASIA PACIFIC AMERICAS 49 staff 42 staff 237 staff AUSTRALIA 278 staff 1. Staff numbers at 31 Dec 09 77

78. Slide 78: Track record of growth

    Track record of growth For personal use only People Book Value of Assets1 ($Ab) 13.8 Up 10% pcp Up 69% pcp 606 G R R CA A G % C 21 3 3% 307 5.1 31-Jul-06 31-Dec-09 31-Jul-06 31-Dec-09 1. This includes assets funded both internally through Macquarie Group Treasury and external sources 78

79. Slide 79: CAF business mix

    CAF business mix For personal use only Income Funded Principal Collateral Customers Contribution YTD Assets1 (%)2 IT/ communications/ security/ Short Cycle medical/ motor vehicles 200,000 $A6.4b 29% Transport/ manufacturing/ Long Cycle energy Over 400 $A0.7b 2% Lending Corporate covenant/ asset Over

80. Slide 80: Risk management process

    Risk management process For personal use only STRUCTURE & OFF-LEASE SALES IN-LIFE PAYMENTS APPROVE REMARKETING PRUDENTIAL COLLECTIONS & REDEPLOYMENT 28 staff1 89 staff1 98 staff1 ƒ Lawyers/ risk/ compliance/ tax ƒ Collectors ƒ Remarketing ƒ 40% up on pcp ƒ 78% up on pcp ƒ Staffing level unchanged ƒ

81. Slide 81: Risk management results

    Risk management results For personal use only pÜçêí=`óÅäÉ=^ëëÉíë=Ó aÉäáåèìÉåÅáÉë=~êÉ=äçï=ÇÉëéáíÉ=ã~êâÉí=ÅçåÇáíáçåë IT/ communications/ security/ medical Motor Vehicles Arrears History Arrears History 2.00% 2.00% 1.60% 1.60% 1.20% 1.20% 0.80% 0.80% 0.40% 0.40% 0.00% 0.00% Sep- Dec- Mar- Jun- Sep- Dec

82. Slide 82: Loans to customers

    Loans to customers For personal use only Well diversified corporate lending portfolio consisting mainly of strong senior secured credits Drawn Amount of Lending Book by Industry 7,000 6,000 Services 5,000 Consumer Goods/Retail Drawn Amount ($m) 4,000 Property Financial/Financial Services 3,000 Indus

83. Slide 83: Operating environment – customers and competitors

    Operating environment – customers and competitors For personal use only Customer demand for leasing products is increasing due to: ƒ Liquidity constrained customers having fewer financing options ƒ Existing customers choosing to extend leases rather than terminate if the asset is required in the bus

84. Slide 84: Example of recent transaction – Ford Credit Australia (FCA)

    Example of recent transaction – Ford Credit Australia (FCA) For personal use only ƒ Macquarie Leasing (ML) offers a wide range of auto finance/ insurance products to business/ retail customers in Australia ƒ On 1 Oct 09, ML acquired a $A1b portfolio of auto leases/ loans from FCA ƒ 60,000 cars and a

85. Slide 85: Example of recent transaction – Relational Technology Services (RTS)

    Example of recent transaction – Relational Technology Services (RTS) For personal use only ƒ Macquarie Equipment Finance (MEF) entered in to an agreement to service a portfolio of $US500m of leases on behalf of RTS – the No. 5 independent US lessor ƒ We have hired select RTS sales staff from 1 Jan 1

86. Slide 86: Outlook

    Outlook For personal use only Organic Growth ƒ Customer demand leading to higher lease volumes across most asset classes ƒ Strong customer demand for loans Acquisitions ƒ Continually evaluating opportunities to purchase operating platforms and portfolios that meet strategic goals and risk/return cri

87. Slide 87: Summary

    Summary For personal use only ƒ Increased market share in existing leasing businesses ƒ Further expansion through vendor relationships and movement into adjacent asset classes ƒ Increased lending in line with customer needs ƒ Continued acquisition of portfolios of assets at attractive prices: ⎯ Ford

88. Slide 88: Operational Briefing February 10

    For personal use only Macquarie Group Limited Operational Briefing 9 February 2010 – Presentation to Investors and Analysts

89. Slide 89: Glossary

    Glossary For personal use only $A Australian Dollar DCM Debt Capital Markets $C Canadian Dollar DRP Dividend Reinvestment Plan $US US Dollar EBITDA Earnings before interest, tax, depreciation and amortisation ₤ Pound ECM Equity Capital Markets € / EUR Euro EMA Emerging Market Arbitrage 1H10 First ha

90. Slide 90: Glossary

    Glossary For personal use only JV Joint Venture pa Per annum m Million pcp Prior corresponding period M&A Mergers and Acquisitions PPE Property Plant and Equipment MacCap Macquarie Capital Ps Mexican Pesos MAp Macquarie Airports Qtr Quarter MBL Macquarie Bank Limited REIT Real Estate Investment Trus

Macquarie Group — Investor Presentation (February 2010) on 6ix