Macquarie Group, Ltd. · ASX:MQG
Macquarie — Debt Investor Presentation (May 2008)
36 slides from Macquarie's debt investor presentation, May 28, 2008
Slide 1: Macquarie Convertible Preference Securities Offer to raise up to $600 million
For personal use only MACQUARIE GROUP LIMITED Macquarie Convertible Preference Securities Offer to raise up to $600 million
Slide 2: Important Notice
Important Notice Macquarie Capital Loans Management Limited (ABN 18 077 595 012, AFSL 241106) , as the responsible entity for Macquarie CPS Trust (Issuer), is the proposed issuer of Macquarie Convertible Preference For personal use only Securities (CPS). CPS are not securities of Macquarie Group Lim
Slide 3: Agenda
Agenda For personal use only 1. Key details of offer 2. Macquarie Group 3. Financial performance 4. CPS key terms 5. Logistics 3
Slide 4: Key details of offer
Key details of offer For personal use only Issuer — Macquarie Capital Loans Management Limited as responsible entity for the Macquarie CPS Trust (“Issuer”) — Macquarie Convertible Preference Securities (“CPS”) Security — CPS are unsecured, mandatorily exchangeable preference units in the Macquarie C
Slide 5: Key details of offer
Key details of offer For personal use only If Exchange occurs before 30 June 2013, Macquarie Group Limited undertakes CPS Holders will receive: — in the case of Redemption or Resale, the Make-Whole Amount in cash; and Make-Whole — in the case of Conversion, an additional number of Ordinary Shares de
Slide 6: Agenda
Agenda For personal use only 1 Key details of offer 2. Macquarie Group 3. Financial performance 4. CPS key terms 5. Logistics 6
Slide 7: Macquarie Group overview
Macquarie Group overview For personal use only ― International provider of banking, financial, advisory, investment and funds management services ― Consistent high growth rates since establishment in 1969 ― Over 13,000 staff operating in 25 countries ― Top 20 company on the Australian Securities Exc
Slide 8: Worldwide operations
Worldwide operations For personal use only Macquarie Group has more than 13,200 staff in 25 countries EUROPE & MIDDLE EAST ASIA NORTH AMERICA 1,357 staff 2,090 staff 1,792 staff Beijing Seoul Tianjin Tokyo Shanghai Calgary Taipei Vancouver Winnipeg Hong Kong Hsinchu Seattle Toronto Dublin Manchester
Slide 9: Group structure
Group structure For personal use only Macquarie Group’s activities are organised into six operating groups For year ended 31 March 2008, net profit contribution1 by operating group: ― Macquarie Capital: 63% ― Equity Markets Group: 16% ― Treasury and Commodities Group: 14% ― Banking and Financial Ser
Slide 10: Diversity of operating income
Diversity of operating income1 For personal use only Dividends & distributions, 1.0% Base funds management fees, specialist funds, 7.2% Share of net profits of associates, 1.9% Base funds management fees, other funds, 3.8% Net interest income, 8.1% Interest rate products, 1.2% Foreign exchange produ
Slide 11: Managing important assets across the globe
Managing important assets across the globe Strong investor support: $A70b raised over past 4 years For personal use only UK Poland Canada USA Aquarion Japan South Korea M6 Toll Deep Sea Container Edmonton Ring Road South Bay Expressway Puget Energy* Toyo Tires Turnpike Baekyang Tunne
Slide 12: Record specialist fund raisings
Record specialist fund raisings For personal use only $A22.4b raised over the 12 months to 31 March 2008 — 75% was from international investors and 85% went into unlisted funds or syndicates $Ab 25 20 Raising Fund ($Ab) Unlisted infrastructure 7.74 15 Listed Infrastructure 2.95 Unlisted Real Estate
Slide 13: Funding structure
Funding structure For personal use only ― MGL and MBL are the Group’s two primary external funding vehicles which have separate and distinct funding, capital and liquidity management arrangements ― MGL provides funding predominantly to the Non-Banking Group ― MBL provides funding to the Banking Grou
Slide 14: Agenda
Agenda For personal use only 1. Key details of offer 2. Macquarie Group 3. Financial performance 4. Precedent transactions and CPS key terms 5. Logistics 14
Slide 15: Profit 2008
Profit 2008 For personal use only Macquarie Group’s profit for the year ended 31 March 2008 was $1.8 billion, consistent with guidance and a 23% increase on the 2007 result $Am 2,000 $A1.80b 1,800 1,600 $A1.46b 1,400 1,200 1,000 $A916m $A812m 800 600 $A494m 400 200 0 2004 2005 2006 2007 2008 Through
Slide 16: Dividends
Dividends For personal use only Dividends for the year ended 31 March 2008 increased 10% on the prior year and equated to a 52% payout ratio Acps 400 Special dividend 345cps 350 315cps 300 250 215cps 201cps 200 150 122cps 100 50 0 2004 2005 2006 2007 2008 16
Slide 17: Assets under management
Assets under management For personal use only Macquarie Group’s assets under management grew to $A232 billion at 31 March 2008, representing an 18% increase on 2007 $Ab 250 FSG/FMG Wholesale $A232b FSG/FMG Retail Other Specialist 200 $A197b Real estate Infrastructure 150 $A140b 100 $A97b $A63b 50 0
Slide 18: Capital growth
Capital growth For personal use only Macquarie Group has consistently grown capital in excess of business requirements to allow for future growth $Ab $12 New Capital* Macquarie Income Preferred Securities $A10.0b $10 Macquarie Income Securities Ordinary shareholders equity $8 $A7.5b $6 $A5.3b $A4.4b
Slide 19: Regulatory capital position
Regulatory capital position For personal use only Macquarie Bank Limited is accredited by APRA for advanced approaches under Basel II for credit risk (Foundation Internal Ratings Based) and operational risk (Advanced Measurement Approach) Macquarie Group – Pro-forma Regulatory Capital Position (31 M
Slide 20: Funding and liquidity
Funding and liquidity For personal use only ― Well funded ― Liquid assets of $A18.3b for the Group, increased to a level which is approximately 3 times the level at 31 March 2007 ― Since August 2007, significant term funding of $A17b has been raised and deposits have increased 30% to $A13.2b from $A
Slide 21: Funding for the Group
Funding for the Group For personal use only Diversity of funding sources ($Ab) Balance sheet composition $Ab Secured Undrawn Senior funding, $A8.2 Funding sources Bonds, $A8.1 credit facility, Issued paper (NCDs, commercial paper and other issued paper) 25.8 $A4.1 Drawn Senior Equity, $A9.2 Secured
Slide 22: Macquarie Group is very well positioned
Macquarie Group is very well positioned For personal use only Macquarie Group is ― very profitable; ― well capitalised; and ― well funded Due to Macquarie Group’s strong commitment to risk management it has ― no unusual trading exposures; and ― no unusual credit quality concerns Despite market condi
Slide 23: No unusual trading exposures
No unusual trading exposures Our robust risk management has proven effective in this environment For personal use only ― Main business focus is making returns by providing services to clients rather than by principal trading ― No problem trading exposures ― No material problem credit exposures ― No
Slide 24: Agenda
Agenda For personal use only 1. Key details of offer 2. Macquarie Group 3. Financial performance 4. Precedent transactions and CPS key terms 5. Logistics 24
Slide 25: Precedent transactions
Precedent transactions For personal use only — Macquarie Capital Loans Management Issuer Limited as responsible entity for the Suncorp-Metway Limited St.George Bank Limited Macquarie CPS Trust — Convertible Preference Securities — Convertible Preference Shares Security — Converting Preference Shares
Slide 26: Macquarie CPS Trust
Macquarie CPS Trust For personal use only ― The Trust is a special purpose trust established solely for the purpose of issuing CPS ― The diagram below provides an overview of the use of proceeds and corporate structure 26
Slide 27: CPS key terms
CPS key terms For personal use only Issuer — Macquarie Capital Loans Management Limited as responsible entity for the Macquarie CPS Trust — Convertible Preference Securities (“CPS”) Security — Non-cumulative, unsecured, fixed rate, mandatorily convertible, preference units securities in the CPS Trus
Slide 28: CPS key terms
CPS key terms For personal use only — Distributions are preferred, unfranked, non-cumulative, fixed rate converting to a floating rate after the Initial Mandatory Conversion Date Fixed Rate — Until the Initial Mandatory Conversion Date, Distributions are scheduled to be paid at the end of each semi-
Slide 29: CPS key terms
CPS key terms For personal use only — Macquarie Group has undertaken for the benefit of Holders that if, for any Distribution Period, Distributions are not paid in full by the Issuer within five Business Days of the relevant Distribution Payment Date, a Distribution Restriction will apply such that
Slide 30: CPS key terms
CPS key terms For personal use only — Macquarie Group must convert all CPS on issue at the Mandatory Conversion Date, subject to the Mandatory Mandatory Conversion Conditions, into a variable number of Ordinary Shares Conversion — Holders will receive $101.01* worth of Ordinary Shares per CPS (based
Slide 31: CPS key terms
CPS key terms For personal use only — The Issuer may choose to arrange that all (but not some only) CPS on issue be acquired from Holders by a Nominated Purchaser(s) for cash equal to $100 for each CPS on the Mandatory Conversion Date or Exchange Date — If the Issuer chooses to arrange Resale, it mu
Slide 32: CPS key terms
CPS key terms For personal use only —Issuer can choose to: —Convert each CPS into a number of Ordinary Shares equal to the Conversion Number (with APRA’s prior written approval); Exchange Method —arrange that all (but not some only) CPS on issue be Resold from Holders to one or more Nominated in the
Slide 33: CPS key terms
CPS key terms For personal use only —Following an Acquisition Event the Issuer must, subject to obtaining prior written approval of APRA, Exchange all CPS —The Issuer must choose to: —Convert all (but not some only) of CPS into a number of Ordinary Shares equal to the Conversion Number, subject to t
Slide 34: Agenda
Agenda For personal use only 1. Key details of offer 2. Macquarie Group 3. Financial performance 4. Precedent Transactions and CPS key terms 5. Logistics 34
Slide 35: Summary of key dates
Summary of key dates For personal use only Event Date Product Disclosure Statement lodged with ASIC 28 May 2008 Roadshow 28-30 May 2008 Bookbuild 3 June 2008 Replacement Product Disclosure Statement lodged with ASIC 5 June 2008 Broker Firm, General Offer and Shareholder Priority Offer Opening Date 5
Slide 36: Contacts
Contacts For personal use only Macquarie Group Limited Sole Arranger and Joint Lead Manager Greg Ward 02 8232 3087 Bob Herbert 03 9635 8263 Richard Nelson 02 8232 5008 Cameron Duncan 02 8232 7405 Joint Lead Managers Fraser Todd 02 8225 4692 Rob Penney 02 9320 1391 Stuart Raynes 02 9220 1594 David Ba
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