Slide 1: 2023 Annual General Meeting
2023 Annual General Meeting Macquarie Group Limited 27 July 2023 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 02 03 Chair’s Update Overview of 1Q24 Update FY23 04 05 06 FY24 Outlook Formal Glossary Business 3
Slide 4: Chair's Update
Chair's Update Glenn Stevens Chair 4
Slide 5: Financial performance
Chair's Update Overview of FY23 1Q24 Update FY24 Outlook Formal Business Glossary Financial performance Operating income FY23 Profit FY23 $A19,122m $A5,182m $Am $Am 20,000 10 % 5,000 10 % 16,000 ON FY22 4,000 ON FY22 12,000 3,000 8,000 2,000 4,000 1,000 - - FY19 FY20 FY21 FY22 FY23 FY19 FY20 FY21 FY
Slide 6: Final dividend
Chair's Update Overview of FY23 1Q24 Update FY24 Outlook Formal Business Glossary Final dividend 2H23 Ordinary Dividend FY23 Ordinary Dividend $A4.50 $A7.50 FROM FROM $A3.50 $A6.22 (40% franked) (40% franked) (40% franked) IN 2H22 (40% franked) IN FY22 2H23 Record Date Payout Ratio Dividend 16 May 2
Slide 7: Net Zero and Climate Risk Report
Chair's Update Overview of FY23 1Q24 Update FY24 Outlook Formal Business Glossary Net Zero and Climate Risk Report Macquarie has been driving practical climate solutions for almost 20 years, with our first investments in renewables dating back to 2005. Since then, we have evolved our approach year b
Slide 8: Environmental, Social and Governance
Chair's Update Overview of FY23 1Q24 Update FY24 Outlook Formal Business Glossary Environmental, Social and Governance Macquarie’s ESG approach is structured around eight focus areas considered to be material to our business and stakeholders Environmental Climate Environmental and Sustainability Cli
Slide 9: Risk culture
Chair's Update Overview of FY23 1Q24 Update FY24 Outlook Formal Business Glossary Risk culture Macquarie recognises that a sound risk culture is integral to an Risk Management Framework Macquarie’s approach to risk management is based on effective risk management framework stable and robust core ris
Slide 10: Empowering people to innovate and invest for a better future
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 10
Slide 11: Diversity, Equity & Inclusion
Chair's Update Overview of FY23 1Q24 Update FY24 Outlook Formal Business Glossary Diversity, Equity & Inclusion Macquarie recognises that the diversity of our people is one of our greatest strengths. An inclusive, equitable workplace enables us to deliver more innovative and sustainable solutions fo
Slide 12: Macquarie Group Foundation
Chair's Update Overview of FY23 1Q24 Update FY24 Outlook Formal Business Glossary Macquarie Group Foundation The Foundation drives social impact work for Macquarie Group. We support our people, businesses, and communities to build a better future, and engagement with our people is at the heart of ev
Slide 13: Board update
Chair's Update Overview of FY23 1Q24 Update FY24 Outlook Formal Business Glossary Board update Ensuring that the Board is an effective shareholder steward for a business as diverse as Macquarie requires balancing experience and longevity with fresh perspectives, underpinned by diversity of expertise
Slide 14: Overview of FY23
Overview of FY23 Shemara Wikramanayake Managing Director and Chief Executive Officer 14
Slide 15: 54 years of unbroken profitability
Chair's Update Overview of FY23 1Q24 Update FY24 Outlook Formal Business Glossary 54 years of unbroken profitability $Ab 6.0 TSR % MSCI 14,000 Total Earnings Dividends World MSCI Performance shareholder per share per share Diversified Capital World $A5,182 million (ASX: MQG) return2 CAGR CAGR ASX 20
Slide 16: FY23 result: $A5,182m up 10% on FY22
Chair's Update Overview of FY23 1Q24 Update FY24 Outlook Formal Business Glossary FY23 result: $A5,182m up 10% on FY22 2H23 1H23 2H23 v FY23 FY22 FY23 v $Am $Am 1H23 $Am $Am FY22 Net operating income 10,481 8,641 21% 19,122 17,324 10% Total operating expenses (6,517) (5,613) 16% (12,130) (10,785) 12
Slide 17: FY23 net profit contribution from operating groups
Chair's Update Overview of FY23 1Q24 Update FY24 Outlook Formal Business Glossary FY23 net profit contribution from operating groups $A10,351m up 9% on FY22 Annuity-style businesses Markets-facing businesses $A4,143m $A6,208m 17% 38% ON FY22 ON FY22 Non-Banking Group Macquarie Asset Management (MAM)
Slide 18: Diversification by region
Chair's Update Overview of FY23 1Q24 Update FY24 Outlook Formal Business Glossary Diversification by region International income 71% of total income1 Total staff2 20,509 of which 51% international. A further ~246,000 people employed across managed fund assets and investments3 Americas EMEA Asia Aust
Slide 19: Macquarie Asset Management
Chair's Update Overview of FY23 1Q24 Update FY24 Outlook Formal Business Glossary Macquarie Asset FY23 Private Public Management rankings & awards Markets Investments Investing to deliver positive impact for everyone No. 1 Infrastructure $A336.3b 30% on Mar 22 $A534.5b slightly on Mar 22 FY23 Net pr
Slide 20: Banking and Financial Services
Chair's Update Overview of FY23 1Q24 Update FY24 Outlook Formal Business Glossary Banking and FY23 Financial Services awards A technology-driven Australian retail $A108.1b 21% on Mar 22 $A129.4b 32% on Mar 22 Home loan portfolio Total BFS deposits1 bank and wealth manager FY23 Net profit contributio
Slide 21: Commodities and Global Markets
Chair's Update Overview of FY23 1Q24 Update FY24 Outlook Formal Business Glossary Commodities and FY23 Strong underlying client business Global Markets rankings & awards Commodity Financial Global business offering capital and financing, risk management, market access, ~9.0 billion Markets Markets p
Slide 22: Macquarie Capital
Chair's Update Overview of FY23 1Q24 Update FY24 Outlook Formal Business Glossary Macquarie Capital FY23 Well-positioned around long-term trends such as tech-enabled innovation, the growth in private capital, and addressing communities’ unmet needs rankings & awards Focus on areas of expertise Advis
Slide 23: Approximate business Basel III Capital and ROE
Chair's Update Overview of FY23 1Q24 Update FY24 Outlook Formal Business Glossary Approximate business Basel III Capital and ROE 31 Mar 23 APRA Basel III Capital Approx. FY23 Return on Approx. 17-year Average Operating Group @ 10.25% ($Ab) Ordinary Equity1 Return on Ordinary Equity2 Annuity-style bu
Slide 24: Business backed by strong funding and capital
Chair's Update Overview of FY23 1Q24 Update FY24 Outlook Formal Business Glossary Business backed by strong funding and capital MGL funded balance sheet1 APRA Basel III capital position8 Credit ratings 31 Mar 232 31 Mar 23 $Ab Group capital surplus ST wholesale issued paper 10% Group capital surplus
Slide 25: 1Q24 Update
1Q24 Update Shemara Wikramanayake Managing Director and Chief Executive Officer 25
Slide 26: 1Q24 Overview
Chair's Update Overview of FY23 1Q24 Update FY24 Outlook Formal Business Glossary 1Q24 Overview Weaker trading conditions with 1Q24 Operating Group contribution substantially down on the prior corresponding period (pcp) (1Q23) ● Macquarie’s annuity-style businesses (MAM and BFS) combined 1Q24 net pr
Slide 27: 1Q24 Overview: Annuity-style businesses
Chair's Update Overview of FY23 1Q24 Update FY24 Outlook Formal Business Glossary 1Q24 Overview Annuity-style businesses Macquarie Asset Management Banking and Financial Services ~23% FY23 contribution1 ~12% FY23 contribution1 ● AUM2 of $A864.2b at 30 Jun 23, broadly in line with Mar 23 ● Home loan
Slide 28: 1Q24 Overview: Markets-facing businesses
Chair's Update Overview of FY23 1Q24 Update FY24 Outlook Formal Business Glossary 1Q24 Overview Markets-facing businesses Commodities and Global Markets Macquarie Capital ~57% FY23 contribution1 ~8% FY23 contribution1 ● Commodities: performance significantly down on prior corresponding ● 67 transact
Slide 29: Funded balance sheet remains strong
Chair's Update Overview of FY23 1Q24 Update FY24 Outlook Formal Business Glossary Funded balance sheet remains strong Term liabilities exceed term assets 31 Mar 23 30 Jun 23 $Ab $Ab 330 330 300 300 ST wholesale issued paper 10% ST wholesale issued paper 10% Total customer deposits5 270 Other debt ma
Slide 30: Capital management update
Chair's Update Overview of FY23 1Q24 Update FY24 Outlook Formal Business Glossary Capital management update Group capital position at Jun 23 ● APRA Basel III Group capital surplus of $A10.8b1,2. Reduction in surplus of $A1.8b from Mar 23 predominantly driven by the 2H23 dividend and FY23 MEREP award
Slide 31: Business capital requirements
Chair's Update Overview of FY23 1Q24 Update FY24 Outlook Formal Business Glossary Business capital requirements1 1Q24 business capital requirements excluding FX remain largely unchanged. 1Q24 Key drivers 29.0 BFS 0.1 $A26.5b 27.0 2.4 $A26.4b 0.0 0.1 0.3 ● Growth in home loans and 0.1 0.1 business ba
Slide 32: Strong regulatory ratios
Chair's Update Overview of FY23 1Q24 Update FY24 Outlook Formal Business Glossary Strong regulatory ratios Bank Group Level 2 Ratios (Jun 23) 250% 250% 8.0% 20.0% 1 18.1% 200% 211%¹ 200% 16.0% 6.0% 5.9% 150% 150% 13.6% 5.2% 12.0% 4.0% 115% 100% 100% 8.0% 2.0% 50% 50% 4.0% 0.0% 0.0% 0% 0% CET1 ratio
Slide 33: Regulatory update
Chair's Update Overview of FY23 1Q24 Update FY24 Outlook Formal Business Glossary Regulatory update Australia APRA has finalised or is in the process of implementing changes to a number of prudential standards. Macquarie notes the following key updates: ● APRA’s revised bank capital framework (UQS),
Slide 34: FY24 Outlook
FY24 Outlook Shemara Wikramanayake Managing Director and Chief Executive Officer 34
Slide 35: Short-term outlook
Chair's Update Overview of FY23 1Q24 Update FY24 Outlook Formal Business Glossary 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 broadl
Slide 36: Short-term outlook
Chair's Update Overview of FY23 1Q24 Update FY24 Outlook Formal Business Glossary 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
Slide 37: Medium-term outlook
Chair's Update Overview of FY23 1Q24 Update FY24 Outlook Formal Business Glossary 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 se
Slide 38: Medium term
Chair's Update Overview of FY23 1Q24 Update FY24 Outlook Formal Business Glossary Medium term 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 und
Slide 39: Formal Business
Formal Business Glenn Stevens Chair 39
Slide 40: 2023 Annual General Meeting
2023 Annual General Meeting Macquarie Group Limited 27 July 2023 40
Slide 41: Glossary
Glossary 41
Slide 42: Glossary
Chair's Update Overview of FY23 1Q24 Update FY24 Outlook Formal Business Glossary Glossary $A / AUD Australian Dollar CCB Capital Conservation Buffer $US / USD United States Dollar CCyB Countercyclical Capital Buffer £ / GBP Pound Sterling CET1 Common Equity Tier 1 € / EUR Euro CGM Commodities and G
Slide 43: Glossary
Chair's Update Overview of FY23 1Q24 Update FY24 Outlook Formal Business Glossary Glossary IRRBB Interest Rate Risk in the Banking Book MPA Mortgage Professional Australia IFRS International Financial Reporting Standards MWh Mega Watt hour IT Information Technology No. Number LAC Loss-Absorbing Capa
Slide 44: 2023 Annual General Meeting
2023 Annual General Meeting Macquarie Group Limited 27 July 2023 44