Macquarie Group Limited — AGM Information 2009

Jul 28, 2009

==> picture [686 x 89] intentionally omitted <==

Macquarie Group Limited 2009 Annual General Meeting

==> picture [107 x 18] intentionally omitted <==

----- Start of picture text -----

29 July 2009
----- End of picture text -----

==> picture [686 x 91] intentionally omitted <==

----- Start of picture text -----

Disclaimer
----- End of picture text -----

This presentation has been prepared by Macquarie Group Limited (Macquarie) ABN 94 122 169 279. This presentation is general advice only and does not take account of your objectives, financial situation or needs. Before acting on general advice you should consider the appropriateness of the advice having regard to these matters. Information, including forecast financial information, should not be considered as a recommendation in relation to holding, purchasing or selling securities or other instruments. While due care has been used in the preparation of forecast information, actual results may vary in a materially positive or negative manner. Forecasts and hypothetical examples are subject to uncertainty and contingencies outside the control of Macquarie. Past performance is not a reliable indication of future performance.

2

==> picture [686 x 89] intentionally omitted <==

Macquarie Group Limited 2009 Annual General Meeting

29 July 2009

Kevin McCann AM , Acting Chairman

==> picture [686 x 91] intentionally omitted <==

----- Start of picture text -----

Global financial market turmoil in 2008 – 09
----- End of picture text -----

• Market conditions in FY09 were exceptionally challenging

• Significant volatility and market decline particularly in Nov 08 and Feb 09

• Crisis of confidence followed the collapse of Lehman Bros

• In Sep 08, the financial crisis crossed over to the wider economy

• Global regulatory bodies responded to this crisis through capital injections and guarantees of bank deposits & wholesale funding

• Australian banking system, while affected, remained sound

4

==> picture [686 x 91] intentionally omitted <==

----- Start of picture text -----

Global financial market turmoil in 2008 – 09
----- End of picture text -----

==> picture [622 x 326] intentionally omitted <==

----- Start of picture text -----

US credit spreads
% p.a. over 10 yr Treasuries
20%
AAA spread BAA spread High yield spread
16%
12%
Optimism Fear Panic
8%
4%
0%
Jun-01 Jun-02 Jun-03 Jun-04 Jun-05 Jun-06 Jun-07 Jun-08
----- End of picture text -----

Weekly

Data to 31 Dec 08

5

==> picture [686 x 91] intentionally omitted <==

----- Start of picture text -----

Level of fear highlighted by extreme volatility
in financial markets
----- End of picture text -----

==> picture [686 x 403] intentionally omitted <==

----- Start of picture text -----

VIX Volatility “Fear” Index
90 90
80 80
70 70
60 60
Bear Stearns
50 50
sold Lehman Bros
collapse
40 40
30 30
20 20
10 10
0 0
Jan-07 Mar-07 May-07 Jul-07 Sep-07 Nov-07 Jan-08 Mar-08 May-08 Jul-08 Sep-08 Nov-08
Daily
----- End of picture text -----

Source: Markit, Macquarie Research, data to 31 Dec 08

6

==> picture [686 x 91] intentionally omitted <==

----- Start of picture text -----

The crisis crossed over to the wider economy
----- End of picture text -----

==> picture [686 x 403] intentionally omitted <==

----- Start of picture text -----

Meltdown: for housing, the World on the edge
worst is yet to come The Economist
4 October 2008
BusinessWeek
11 February 2008
Recession fears fuel
Credit on the edge worldwide asset sell-off
BusinessWeek Financial Times
28 February 2008 11 October 2008
Twin twisters – Fannie
Mae, Freddie Mac and
The new hard times
the market chaos
The Economist
Time
19 July 2008
13 October 2008
----- End of picture text -----

7

==> picture [686 x 91] intentionally omitted <==

----- Start of picture text -----

Global policy response: Large scale injections
of public funds and fiscal stimulus
----- End of picture text -----

				Total fiscal stimulus announced/introduced	Total fiscal stimulus announced/introduced	Total fiscal stimulus announced/introduced	Total fiscal stimulus announced/introduced	Total fiscal stimulus announced/introduced	Total fiscal stimulus announced/introduced	Total fiscal stimulus announced/introduced	Total fiscal stimulus announced/introduced
	% of GDP 2				since		the crisis	began 1
	100%
	90%									Support for the financial sector3 Other fiscal policy spending4
	80%
	70%
	60%
	50%
	40%
	30%
	20%
	10%
	0%
			Australia		UK		US			Canada		China

1. Source: IMF 2. Local GDP for CY07 3. Includes capital injections, purchase of assets and lending by treasury and other contingent commitments such as guarantees and Central Bank support with Treasury backing 4. Includes fiscal policies such as tax cuts and budgets for infrastructure spending

8

==> picture [686 x 91] intentionally omitted <==

----- Start of picture text -----

During this period, Macquarie’s share price
has largely tracked global financials
----- End of picture text -----

==> picture [686 x 403] intentionally omitted <==

----- Start of picture text -----

MSCI World Diversified Financials Index
Macquarie Group
130
Bear Stearns
120 sold to JP
Morgan Lehman Bros
110
collapse
100
TARP approved,
90
introduction of global
80 fiscal stimulus
70
Capital injection
60 into Citigroup
announced
50
40
30
20
Capital injection into
10 Bank of America
announced
0
Aug-07 Nov-07 Feb-08 May-08 Aug-08 Nov-08 Feb-09
Index
----- End of picture text -----

Source: Bloomberg, data to 31 Mar 09

9

==> picture [686 x 91] intentionally omitted <==

----- Start of picture text -----

Despite this, Macquarie remained profitable
----- End of picture text -----

• Macquarie Group remained profitable - $A871m, down 52% on pcp

• Results marked by a significant number of one-off items including $A2.5b of writedowns which in most part relate to our co-investments alongside investors

• Total operating income $A5.5b, down 33% on pcp

• Employment expenses down $A1.8b or 44% on pcp

• EPS $A3.10, down 54% on pcp

• ROE 9.9%, down from 23.7% in pcp

• Total dividend for FY09 is $A1.85 per share, reflecting a 60% payout ratio for the full year

10

==> picture [686 x 91] intentionally omitted <==

----- Start of picture text -----

Strong risk management remains at the
core of Macquarie
----- End of picture text -----

• Long-standing, stable approach to risk over 30 years

• The essence of risk lies in Macquarie Group business management culture

• This approach is embedded in business unit management and business ownership of risk

• Seek a clear analysis of the risks before taking decisions

• Apply a worst case approach to size all risk types

• Determine aggregate risk appetite by assessing risk relative to earnings more than by reference to capital

• This approach is supported by a central Risk Management Group

11

==> picture [686 x 91] intentionally omitted <==

----- Start of picture text -----

Board matters
----- End of picture text -----

• David Clarke

• Chairs of Board sub-committees

• Nicholas Moore

• Laurie Cox

12

==> picture [686 x 91] intentionally omitted <==

----- Start of picture text -----

Macquarie remains well placed for
continuing evolution
----- End of picture text -----

• Too soon to call an end to the crisis but confidence appears to be returning to the market

• Opportunities to grow market share

• Capable, experienced team

• Proven track record of successfully strengthening the business through tough markets

• Strong balance sheet to support business growth initiatives

13

==> picture [686 x 89] intentionally omitted <==

Macquarie Group Limited 2009 Annual General Meeting

==> picture [107 x 18] intentionally omitted <==

----- Start of picture text -----

29 July 2009
----- End of picture text -----

==> picture [686 x 89] intentionally omitted <==

Macquarie Group Limited Overview of Result Announcement for the year ended 31 March 2009 Annual General Meeting 29 July 2009 Nicholas Moore , Managing Director and Chief Executive Officer

==> picture [686 x 91] intentionally omitted <==

----- Start of picture text -----

Financial performance
Full year ended 31 March 2009
----- End of picture text -----

==> picture [686 x 403] intentionally omitted <==

----- Start of picture text -----

$Am Operating income of $A5,526m $Am Profit of $A871m
10,000 33% decrease on FY08 1H09 2,000 52% decrease on FY08
2H09
8,000 1,600
6,000 1,200
4,000 800
2,000 400
0 0
2005 2006 2007 2008 2009 2005 2006 2007 2008 2009
$A EPS of $A3.10 $A DPS of $A1.85
7.00 54% decrease on FY08 3.50 46% decrease on FY08
6.00 3.00
Special
5.00 2.50
4.00 2.00
3.00 1.50
2.00 1.00
1.00 0.50
0.00 0.00
2005 2006 2007 2008 2009 2005 2006 2007 2008 2009
----- End of picture text -----

16

==> picture [686 x 89] intentionally omitted <==

----- Start of picture text -----

Diversified by region
International income [1] 52% of total
International staff 43% [2] of total
----- End of picture text -----

==> picture [678 x 378] intentionally omitted <==

----- Start of picture text -----

EUROPE, MIDDLE EAST
ASIA PACIFIC AMERICAS
& AFRICA [3]
Income: $A916m Income: $A1,072m Income: $A359m [5]
(20% of total) (24% of total) (8% of total)
Beijing Seoul
Tianjin Tokyo
Shanghai Calgary
Taipei Vancouver Winnipeg
Hong Kong Hsinchu Seattle
LondonDublinBristolZurichParis AmsterdamFrankfurtViennaMunichStockholmMoscow [4] MumbaiNew DelhiBangkokLabuanManila San FranciscoLos AngelesCarlsbadSan JoseIrvine San DiegoBloomfield HillsChicagoDenver TorontoMontrealTroyAtlantaNew YorkBoston
Geneva Kuala Lumpur Singapore Austin DallasHoustonJacksonville
Miami
Jakarta
Mexico
Dubai
Abu Dhabi
Sunshine Coast
Gold Coast Brisbane
Perth
Adelaide SydneyNewcastle
Melbourne Canberra Auckland
Wellington
Christchurch
Sao Paulo
Johannesburg
Cape Town
AUSTRALIA
Income: $A2,207m
(48% of total)
----- End of picture text -----

1. Income for year to 31 Mar 09. Income in each region excludes earnings on capital and other corporate items. 2. Based on staff number as at 31 Mar 09. 3. Excludes staff in Macquarie First South joint venture. 4. Staff seconded to joint venturer not included in official headcount (Moscow: Macquarie Renaissance, Savannah: Medallist). 5. Contribution for the year to 31 Mar 09 impacted by impairments and equity accounted losses. Contribution for the year to 31 Mar 08 included significant asset realisations 17

==> picture [686 x 89] intentionally omitted <==

----- Start of picture text -----

Diversified income
Operating income by source
----- End of picture text -----

Operating income (before loan provisions, impairment charges, equity accounted losses and one-off items of income) down 14% on pcp

==> picture [626 x 311] intentionally omitted <==

----- Start of picture text -----

6 mths to 30 Sep 08 12 mths to 31 Mar 09
$A4.1b $A7.6b
15%
17%
18% 15%
5%
12% 12%
13%
13%
12%
15%
18% 8%
10%
7%
10%
Lending, leasing and margin Commodities, resources Asset and equity investments Third party M&A and advisory income
related income and foreign exchange
Institutional and retail Equity derivatives Macquarie-managed funds (includes Securities funds management
cash equities base and performance fees, M&A and administration
advisory and underwriting and asset
sales)
----- End of picture text -----

18

==> picture [686 x 89] intentionally omitted <==

----- Start of picture text -----

Extreme conditions resulted in one-off costs,
equity losses & provisions of $A2.5b
----- End of picture text -----

	�Over half stem from longstanding philosophy of co-investment
		$Ab
	Mortgages Italy	0.2
	Co-investments	1.5
	Loans	0.5
	Trading assets	0.3
	Total	2.5

19

==> picture [686 x 89] intentionally omitted <==

----- Start of picture text -----

Assets under management of $A243b
----- End of picture text -----

• Inflows affected by financial market disruption, particularly during Sep qtr

• Movement in $A exchange rate had a positive effect while impact of declining equity values was negative

==> picture [601 x 281] intentionally omitted <==

----- Start of picture text -----

250 1 $A243b
Banking and Financial Services $A232b
$Ab
Macquarie Funds Group
Real Estate Banking Division $A197b
200
Macquarie Capital Funds
150 $A140b
$A97b
100
50
0
2005 2006 2007 2008 2009
----- End of picture text -----

1. The Macquarie CMT, included in BFS AUM above, is a BFS product that is managed by MFG

20

==> picture [686 x 89] intentionally omitted <==

----- Start of picture text -----

Funded balance sheet continued to strengthen
----- End of picture text -----

==> picture [691 x 335] intentionally omitted <==

----- Start of picture text -----

Macquarie Group Limited
$Ab 31 March 2008 $Ab 30 September 2008 $Ab 31 March 2009
80 80 80
ST wholesale
70 ST wholesaleissued paper excess1.1x Cash and liquidassets (28%) 70 ST wholesaleissued paper excess1.4x Cash and liquid 70 issued paper Other debt (10%) [1] excess3.9x Cash and liquid
(27%) (25%) assets (34%) maturing in the next assets (41%)
12 mths (9%)
60 60 60
Other debt [1]
maturing in the
50 maturing in thenext 12 mthsOther debt [1] Trading assets 50 next 12 mths(14%) 50 Deposits (25%)
(17%) (17%) Trading assets
(12%)
Trading assets
40 40 Deposits 40 (12%)
Deposits Loan assets (22%) ` Loan assets
(18%) < 1 year < 1 year Loan assets
(17%) (17%) < 1 year
30 30 30 (8%)
Debt maturing
Debt maturing beyond
Debt maturing Loan assets beyond 12 mths (39%)
20 12 mths (22%)beyond > 1 year (24%) 20 12 mths (23%) Loan assets > 1 year 20 Loan assets > 1 year Assets held
(24%) Loan (26%) for sale
capital
10 10 10 Debt
Equity (12%) investmentsEquity [2] Equity (12%) investmentsEquity [2] Hybrid Equity (12%) investmentsEquity [2] investmentsecurities
(9%) (9%) (10%) PPE &
0 0 0 inta ngibles
Funding sources Funded assets Funding sources Funded assets Funding sources Funded assets
----- End of picture text -----

Note: These charts represent Macquarie Group Limited’s funded balance sheets at the respective dates noted above.

1. Includes Structured Notes, Secured Funding, Bonds, Other Bank Loans maturing within the next 12 mths and Net Trade Creditors. 2. This represents the Group’s co-investment in Macquarie-managed funds and equity investments

21

==> picture [686 x 89] intentionally omitted <==

----- Start of picture text -----

Consistently strong capital base
----- End of picture text -----

==> picture [686 x 403] intentionally omitted <==

----- Start of picture text -----

�
Well capitalised – surplus over minimum regulatory requirements of $A3.1b [1]
�
Increased regulatory capital by approx $A5.4b over the past three years
—
Majority of capital raised before global financial crisis - $A3.6b [2]
$Ab
12
$A10.2b
10 $A9.3b
8 $A7.2b
6
$A4.8b
4
2
0
2006 2007 2008 2009
Pre-restructure: Tier 1 regulatory capital (Basel I) Post-restructure: Eligible regulatory capital (Basel II)
----- End of picture text -----

1. As at 31 Mar 09. Does not include the $A1.2b capital raisings and $A0.3b MIPS buyback completed post balance date 2. From 1 Apr 06 to 31 Jul 07

22

==> picture [686 x 89] intentionally omitted <==

----- Start of picture text -----

Successes achieved in a testing year
----- End of picture text -----

• Macquarie Macquarie Macquarie Treasury and Banking and Securities Capital Funds Commodities Financial Services

• � � � � � Cash equities – 299 deals, worth First quartile Operating Retail deposits: Retained No.1 in $A203b: performance: income up 24%: up 103% Australia – Infrastructure: up – Credit – FX: up 31% � Retail

• – Asia – leading 38% – stockbroking – – Global REITs Energy: up 175%

• research rankings No. 1 in Australia – Resources: up � – Quantitative Constellation

• � Equity derivatives 245% � Strong growth in equities acquisition

• – Market leader in � Ranked No.1 for Macquarie Life Australia, Insurance HK IPOs in CY08

• Singapore, Hong and 4Q09[1] � Significant Kong, Korea �Funds: expansion of

• � ECM – $A11b Macquarie equity raised – $A8b equity raised Pastoral Fund

• � – Over $A6b � Canada growth Exited margin initiatives available equity in loans, Italian unlisted funds

• � mortgages US profitable

• � Europe break even

• Source: Bloomberg

23

==> picture [686 x 89] intentionally omitted <==

----- Start of picture text -----

Macquarie model – focus over the medium term
----- End of picture text -----

• Client driven business

� Alignment of interests with shareholders, investors, staff

� Conservative approach to risk management

• Incremental growth and evolution

� Diversified by business and geography

� An ability to adapt to change

24

==> picture [686 x 89] intentionally omitted <==

----- Start of picture text -----

Macquarie model – focus over the medium term
2004-2009
----- End of picture text -----

==> picture [453 x 312] intentionally omitted <==

----- Start of picture text -----

Operating income
Organic growth
Original
(23%)
businesses
(37%)
2009
2004
New businesses
(40%)
$A2.8b
$A7.6b [1]
----- End of picture text -----

40% of FY09 operating income[1] comes from businesses that did not exist 5 years ago

1. Represents operating income before loan provisions, impairment charges, equity accounted losses and one-off items of income

25

==> picture [686 x 89] intentionally omitted <==

----- Start of picture text -----

Macquarie model – focus over the medium term
2004-2009
----- End of picture text -----

Banking and Macquarie Macquarie Macquarie Treasury and Corporate and Financial Securities Capital Funds Commodities Asset Finance Services % of income[1] derived from businesses that did not exist 5 years ago:

		73%	41%	43%	30%	52%	8%
	Businesses/activities entered:
	2004	Asia	Asia ECM			Aviation,	Premium funding
						electronics,
						meters
	2005	Cash: India	India	Retail	Natural gas: US,		Coin Software
					UK
	2006	South Africa	China	International	Coal, emissions,	Rolling stock	Macquarie Life
		JV		expansion	freight, emerging
					markets
	2007	Orion	Orion Securities,		Power: US,	China, Europe	India JV, credit
		Securities	Giuliani Capital,		renewables		cards, OzForex,
			US restructuring				Pastoral Fund
	2008	US, Europe	Renewables		Credit trading	CIT Systems	Private Banking:
						Leasing	Asia
	2009			Fixed income:	Power: Europe,	Strategic	UK Wrap
				US	Constellation	alliances

1. Represents operating income before loan provisions, impairment charges, equity accounted losses and one-off items of income

26

==> picture [686 x 89] intentionally omitted <==

----- Start of picture text -----

Macquarie model – focus over the medium term
2009+
----- End of picture text -----

Macquarie Securities Macquarie Capital Macquarie Funds Treasury and Commodities Corporate and Asset Finance Banking and Financial Services 2009+ initiatives Expansion of existing business Asia, Canada, South Africa US, Canada, Europe, UK, Asia, Tristone Offshore products, high alpha commodity Energy, natural gas, coal trading Equipment leasing, rolling stock High margin business, online, UK Wrap Business/ product develop- ment US, Europe, India Mexico, Dubai, Stockholm, Russia; range of renewable initiatives Fund options, equity-linked deposits, annuity Credit trading, US futures, gas metering, wet freight US, China India, UHNW Private Wealth Other initiatives Global broker, build out synthetic products platform Selective recruitment: advisory Acquisitions: asset managers Refine/grow: FX, agriculture, futures, US debt Maritime, US speciality leasing funds management, high-margin corporate loans Selective acquisition Continue to grow market share around the world as competitors reduce/exit

27

==> picture [686 x 91] intentionally omitted <==

----- Start of picture text -----

Growth through the cycle
----- End of picture text -----

==> picture [686 x 403] intentionally omitted <==

----- Start of picture text -----

Hill Samuel
2
UK opens
1.6 branch office Hills Motorway
100 in Sydney Mortgage
1.2 securitisation
Recession
80 0.8 Currency Global real
crisis
0.4 estate crash
60 0 Recession
1969 1970 1971 1972 1973 1974 1975 1976 1977 1978 1979 London office
opens
40 US banks First listed Stock market
crash
capital losses US recession Savings and MBL property trust
Global debt $A floated loan crisis established Enter
20
crisis stockbroking
0
1980 1981 1982 1983 1984 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994
Orion Securities
CIT Systems Leasing
2000 Thames Water Group Restructure
Giuliani Capital Significant market disruption
1800
1600 Global financial crisis
1400 Constellation
Tristone
1200
ING
1000 9/11
acquired
800 Russian debt Dot com crash recessionUS SARS
600 Asian financial crisis BT Australia Sydney
MBL crisis acquired Airport
400 listed
200
0
1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009
----- End of picture text -----

28

==> picture [686 x 91] intentionally omitted <==

----- Start of picture text -----

We’re making a difference to communities
----- End of picture text -----

Volunteering An important part of life for many of our people More than 900

$A26m Total contributions – staff + Macquarie Group Foundation Staff contributions up 35%

Community organisations supported globally

The Macquarie Group Foundation encourages and supports staff to care for the communities where they live and work

29

==> picture [686 x 89] intentionally omitted <==

Macquarie Group Limited Quarter 1 FY10 update

Annual General Meeting 29 July 2009

Nicholas Moore , Managing Director and Chief Executive Officer

==> picture [686 x 91] intentionally omitted <==

----- Start of picture text -----

Global government response beginning to
restore calm to financial markets
----- End of picture text -----

Interbank spreads are falling

Commercial paper spreads starting to tighten

==> picture [604 x 183] intentionally omitted <==

----- Start of picture text -----

Bps LIBOR to 3m OIS spread Bps Bps USCP to OIS spread AA Non-financial
31 Mar 09
400 400 700 AA Financial 700
Aus US EU UK
350 350 600 600
AA Asset-backed
300 300 500 500
A2/P2 Non-financial
250 250 400 31 Mar 09 400
200 200 300 300
150 150 200 200
100 100 100 100
50 50 0
0 0 -100 (100)
Jan 07 Apr 07 Aug 07 Dec 07 M ar 08 Jul 08 Oct 08 Feb 09 Jun 09 Jun-08 Aug-08 Oct-08 Dec-08 Feb-09 Apr-09 Jun-09
Daily
----- End of picture text -----

Credit markets have thawed

Equity markets are rising

==> picture [316 x 156] intentionally omitted <==

----- Start of picture text -----

Monthly average, $USb Monthly average, $USb
140 Investment grade corporate bond 31 Mar 09 140
issuance
120 120
100 100
80 80
60 60
40 40
20 20
0 0
2005 2006 2007 2008 Mar 09 qtr Jun 09 qtr
----- End of picture text -----

==> picture [286 x 160] intentionally omitted <==

----- Start of picture text -----

Index (1/1/2008=100) Index (1/1/2008=100)
ASX 200 FTSE 100
100 100
90 Nikkei 225 S&P500 90
31 Mar 09
80 80
70 70
60 60
50 50
40 40
Sep 08 Oct 08 Nov 08 Dec 08 Jan 09 Feb 09 Mar 09 Apr 09 May 09 Jun 09
Daily
----- End of picture text -----

Source: Datastream, Federal Reserve, Macquarie Research

31

==> picture [686 x 91] intentionally omitted <==

----- Start of picture text -----

Level of fear is starting to subside
----- End of picture text -----

VIX Volatility “Fear” Index

==> picture [626 x 295] intentionally omitted <==

----- Start of picture text -----

31 Mar 09
90 90
80 80
70 70
60 60
50 50
40 40
30 30
20 20
10 10
0 0
Sep-08 Oct-08 Nov-08 Dec-08 Jan-09 Feb-09 Mar-09 Apr-09 May-09 Jun-09
----- End of picture text -----

Daily

Source: Markit, Macquarie Research, data to 27 Jul 09

32

==> picture [686 x 89] intentionally omitted <==

----- Start of picture text -----

Particularly strong equity capital market activity in
Australia
----- End of picture text -----

� Approx $A90b of new equity issued in the Australian market since 1 Nov 08

==> picture [659 x 331] intentionally omitted <==

----- Start of picture text -----

10% Equity raisings since 1 Nov 08 as percentage
of market capitalisation [1]
9%
8%
7%
6%
5%
4%
3%
2%
1%
0%
Australia Europe US Asia-Pacific (ex Japan Latin America
Australia, ex Japan)
1. Capital raisings that have been priced or announced since 1 Nov 08 as a percentage of each region’s market capitalisation as at 1 Nov 08. Source: Dealogic, Bloomberg 27 Jul 09
% total market capitalisation
----- End of picture text -----

33

==> picture [686 x 89] intentionally omitted <==

----- Start of picture text -----

Global financials continued to rebound
----- End of picture text -----

==> picture [686 x 403] intentionally omitted <==

----- Start of picture text -----

MSCI World Diversified Financials Index
Macquarie Group
60
50
40
30
20
Apr-09 May-09 Jun-09 Jul-09
Index
----- End of picture text -----

Source: Bloomberg, data current to 27 Jul 09

34

==> picture [686 x 89] intentionally omitted <==

----- Start of picture text -----

1Q10 update
----- End of picture text -----

• Improved operational performance from all major businesses except Macquarie Capital compared to 4Q09

• Macquarie Capital significantly impacted by timing and size of transactions

• Good contributions from:

• Macquarie Securities

• Treasury and Commodities

• Banking and Financial Services

• Continue to see a number of one-off items including:

• Gain of approx $A180m on financing acquisition of MIPS and buyback of subordinated debt

• Unrealised loss of $A200m relating to fair value adjustments of issued fixed rate subordinated debt

• As previously foreshadowed, high levels of cash continue to be a drag on current earnings

• Total staff approx 12,500

35

==> picture [686 x 89] intentionally omitted <==

----- Start of picture text -----

1Q10
Activities across the Group
----- End of picture text -----

Macquarie Capital Advisory & ECM �IPOs: China Zhong-wang �Secondary placements – Rio Tinto, Alumina, Mirvac, DHIL, PRIME Media, Geely Auto, Inspur Internat’l �Advisory – Paperlinx, Crown, Quadrant, Private Equity, New Gold Funds �Raisings: $A0.5b �Asset sales: 24 (23 real estate properties), $A0.6b equity proceeds �Refinancings: $A2.4b Macquarie Securities Cash �Market volumes up on 4Q09: – Australia: up 28% – Asia: up 58% – Europe: up 10% – Canada: up 7% �Strong performance increase on 4Q09 �Australia: remained No.11 with 10.4% market share ECM �Australia: $A8.5b �Asia: $US2.8b �North America: $US3.1b Delta 1/Derivatives �Strong performance increase on 4Q09 but down on pcp due to fall in structured equity trades Treasury and Commodities Energy �Volumes – up 27% on Q409 – up 191% on pcp �Business activity – Growth in US power – Entry into European power – Growth of coal trading FX �Volumes2 – down 22% on 4Q09 – up 16% on pcp Metals �New financing opportunities including coal Macquarie Funds Wholesale �First quartile performance: – Credit – Global REITs – Quantitative equities �Inflows of $A13b in 1Q10 �Strong pipeline: – Global REIT product Retail �Non cash products returned to positive fund flows �First quartile performance: – BRIC Advantage emerging market equity funds Banking and Financial Services Private Wealth / Direct �Clients: 300,000 – up 9% on 4Q09 – up 16% on pcp �MPW ASX retail turnover – up 37% on 4Q09 – down 24% on pcp Balance sheet �Total retail deposits: – $A13.3b3 – flat on 4Q09 – up 55% on pcp �CMA deposits: – Inflow of $A0.8b in 1Q10 �Wrap FUA up 8% on 4Q09 Corporate and Asset Finance �Loan and asset portfolio: – up 17% on 4Q09 – up 40% on pcp �Approx 80% of gross new loans and asset finance was to Australian corporates4	Macquarie Capital	Macquarie Securities	Treasury and Commodities	Macquarie Funds	Corporate and Asset Finance		Banking and Financial Services

1. Source: IRESS - Institutional and retail market share, Jun 09 2. Exclude FX deposits and options 3. As at 30 Jun 09 4. Since the introduction of the Government Guarantee in Nov 08

36

==> picture [686 x 89] intentionally omitted <==

----- Start of picture text -----

1Q10
Balance sheet remains very strong
----- End of picture text -----

Macquarie Group Limited

==> picture [691 x 315] intentionally omitted <==

----- Start of picture text -----

31 March 2008 31 March 2009 30 June 2009
$Ab $Ab $Ab
80 80 80
ST wholesale
70 1.1x 70 issued paper 3.9x 70 ST wholesale
ST wholesale excess Cash and liquidassets (28%) (10%) excess issued paper excess4.0x
issued paper Other debt [1] Cash and liquid (10%)
(27%) maturing in the next assets (41%) Other debt [1] Cash and liquid
60 60 12 mths (9%) 60 maturing in the next assets (40%)
12 mths (10%)
Deposits
50 maturing in thenext 12 mthsOther debt [1] Trading assets 50 (25%) 50 Deposits (24%)
(17%) (17%)
40 40 Trading assets 40 Trading assets
(12%)
Deposits Loan assets (11%)
(18%) < 1 year Loan assets Loan assets
30 (17%) 30 Debt maturing < 1 year (8%) 30 Debt maturing beyond < 1 year (8%)
beyond 12 mths (39%)
12 mths (39%)
20 12 mths (22%)Debt maturing beyond Loan assets > 1 year (24%) 20 Loan assets > 1 year (26%) 20 Loan assets > 1 year (27%) Assets held for sale
Loan
capital
Debt
10 10 10 investment
Equity (12%) investmentsEquity [2] Hybrid Equity (12%) investmentsEquity [2] Equity (12%) investmentsEquity [2] securities
0 (9%) 0 (10%) 0 (9%) PPE & intangibles
Funding sources Funded assets Funding sources Funded assets Funding sources Funded assets
----- End of picture text -----

1. Includes Structured Notes, Secured Funding, Bonds, Other Bank Loans maturing within the next 12 mths and Net Trade Creditors 2. This represents the Group’s co-investment in Macquarie-managed funds and equity investments

37

==> picture [686 x 89] intentionally omitted <==

----- Start of picture text -----

Qtr 1 FY10
Further strengthened capital base
----- End of picture text -----

• Surplus over minimum regulatory requirements of $A4.3b strengthened by $A1.2b of new ordinary share capital

==> picture [648 x 318] intentionally omitted <==

----- Start of picture text -----

$Ab
5
+ $A1.2b + $A4.3b
4
+ $A3.1b
3
2
1
0
1
Opening at 31 Mar 09 Capital raisings Closing at 30 Jun 09
----- End of picture text -----

1. Includes other capital movements which broadly offset each other.

38

==> picture [686 x 89] intentionally omitted <==

----- Start of picture text -----

Update on Specialist Listed Funds
----- End of picture text -----

• As outlined in our ASX release on 2 Mar 09, steps are being developed and implemented by a number of the Macquarie Specialist Listed Funds to enhance securityholder value

• These steps are focussed on:

• Closing the gap between the current security prices and the value of the underlying businesses; and

• Ensuring funds have an appropriate capital and funding structure for the current funding and economic environment

• Initiatives announced:

• Agreement to internalise management of MAp and MLE both subject to securityholder approval

• MCG takeover offer by CPPIB for $A3.00 per stapled security[1]

• MMG $A50m buyback

• MCW announced sale of a number of US properties

• Initiatives continue across Specialist Listed Funds

• Offer comprises a cash offer by CPPIB of $A2.50 and a special capital distribution by MCG of $A0.50 per security

39

==> picture [686 x 89] intentionally omitted <==

Macquarie Group Limited Outlook

Annual General Meeting 29 July 2009 Nicholas Moore , Managing Director and Chief Executive Officer

==> picture [686 x 91] intentionally omitted <==

----- Start of picture text -----

Outlook
----- End of picture text -----

• We continue to maintain a cautious stance with a conservative approach to funding and capital, notwithstanding some improvement in market conditions

• Market conditions continue to be volatile, making short-term forecasting extremely difficult

• 1H10 profit currently estimated to be approx midway between 1H09 and 2H09 levels but remains subject to market conditions and significant swing factors and excludes the impact of one-off items

• Swing factors include completion rate of transactions, asset realisations and asset prices

— To date one-off items have broadly offset each other

• Surplus capital and high cash levels, strong team and market conditions provide opportunities for medium term growth building upon:

— Strength, diversification and global reach of our businesses

• Ongoing organic growth initiatives and incremental acquisitions

• Effective risk management

41

==> picture [686 x 89] intentionally omitted <==

Macquarie Group Limited 2009 Annual General Meeting

29 July 2009

==> picture [686 x 89] intentionally omitted <==

Macquarie Group Limited Item 2: Remuneration Report

Annual General Meeting 29 July 2009

Kevin McCann AM , Acting Chairman

==> picture [686 x 91] intentionally omitted <==

----- Start of picture text -----

Remuneration Policy
----- End of picture text -----

Aligning the interests of staff and shareholders Driving long-term shareholder returns Attracting and retaining high quality people

44

==> picture [686 x 91] intentionally omitted <==

----- Start of picture text -----

Success in aligning interests – while overall
performance declined, Macquarie is
outperforming its peers on NPAT
----- End of picture text -----

• Despite decline on previous years, strong NPAT growth, and NPAT growth remains higher than peers

Net Profit After Tax Attributable to Ordinary Equityholders

==> picture [280 x 212] intentionally omitted <==

----- Start of picture text -----

1,800
Growth: 428 %;
1,600
Ten year compound annual
1,400 growth rate: 18%
1,200
1,000
800
600
400
200
0
1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009
----- End of picture text -----

Net Profit After Tax 10 Year Compound Annual Growth Rate Macquarie versus International Investment Banking Competitors*

==> picture [279 x 230] intentionally omitted <==

----- Start of picture text -----

35
30
25
20
15
10
5
-
(5)
(10)
International Investment Banking Competitors
Macquarie
----- End of picture text -----

45

==> picture [686 x 91] intentionally omitted <==

----- Start of picture text -----

Success in aligning interests – while overall
performance declined, Macquarie is
outperforming its peers on ROE
----- End of picture text -----

� Despite decline on previous years, ROE remains higher than peers and generally less volatile than competitors over the same period

10 Year Return on Ordinary Equity

Macquarie versus International Investment Banking Competitors*

==> picture [606 x 189] intentionally omitted <==

----- Start of picture text -----

40
30 Macquarie
20
10
0
(10)
(20)
(60)
(170) 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009
----- End of picture text -----

• Source: Bloomberg. Competitors comprise Babcock & Brown, Bear Stearns, Credit Suisse, Deutsche Bank, Goldman Sachs, Lehman Brothers, Merrill Lynch, Morgan Stanley, UBS.

46

==> picture [686 x 91] intentionally omitted <==

----- Start of picture text -----

Success in attracting and retaining
high quality people
----- End of picture text -----

• The global financial crisis has had an impact on staffing levels

• Macquarie has not experienced the same level of reductions as other global financial players

• Many of our global operations have been recruiting strong performers

• Voluntary turnover continues to be low

• Shareholders have benefited from a stable management team

47

==> picture [686 x 91] intentionally omitted <==

----- Start of picture text -----

Macquarie’s remuneration approach
----- End of picture text -----

• Overall remuneration approach:

— Use shareholder return drivers (NPAT and ROE)

— Employee performance-based remuneration

— Use equity

— Use retention mechanisms

— Provide competitive remuneration and consistency to create

staff confidence

48

==> picture [686 x 91] intentionally omitted <==

----- Start of picture text -----

Macquarie’s remuneration approach
----- End of picture text -----

• Overall remuneration approach:

— Use shareholder return drivers (NPAT and ROE)

— Employee performance-based remuneration

— Use equity

— Use retention mechanisms

— Provide competitive remuneration and consistency to create

staff confidence

49

==> picture [686 x 91] intentionally omitted <==

----- Start of picture text -----

Macquarie’s remuneration approach
----- End of picture text -----

• Overall remuneration approach:

— Use shareholder return drivers (NPAT and ROE)

— Employee performance-based remuneration

— Use equity

— Use retention mechanisms

• Provide competitive remuneration and consistency to create

staff confidence

50

==> picture [686 x 91] intentionally omitted <==

----- Start of picture text -----

Macquarie’s Proposed Remuneration Changes
----- End of picture text -----

• Macquarie’s proposed remuneration changes build upon existing retention and equity alignment arrangements

� The changes are as follows:

• Executive Directors will receive less cash with more profit share being retained as equity

• When an Executive Director leaves an increased amount of deferred profit share will be retained for a longer period of time

• Further, clawback mechanisms will be enhanced

• Finally, fewer options will be granted

51

==> picture [686 x 91] intentionally omitted <==

----- Start of picture text -----

Interim remuneration arrangements
----- End of picture text -----

• Interim remuneration arrangements have been made

• 50% of all Executive Directors profit share for 2009, is held in cash

• In the case of the Managing Director and Chief Executive Officer it is 55%

• No change has been made to prior year retained profit share for Executive Directors

• Finally, consideration of option grants for Executive Committee members has been deferred

• Once the legislative situation is clarified, final shareholder approval may be sought at a special general meeting

• A decision will depend on when legislation passes through both Houses of Parliament

52

==> picture [686 x 91] intentionally omitted <==

----- Start of picture text -----

Macquarie’s remuneration approach
----- End of picture text -----

• Overall remuneration approach:

— Use shareholder return drivers (NPAT and ROE)

— Employee performance-based remuneration

• Use equity

— Use retention mechanisms

• Provide competitive remuneration and consistency to create

staff confidence

53

==> picture [686 x 91] intentionally omitted <==

----- Start of picture text -----

Remuneration approach managed through
strong governance processes
----- End of picture text -----

• Board Remuneration Committee (BRC) is involved with critical remuneration decisions throughout the year

• Key remuneration policies considered by the Non-Executive members of the Board

• The Board pays serious, sustained attention to the design and the operation of remuneration practices for all of Macquarie, not just the most senior executives

• Annually commissions a review of executive remuneration arrangements by independent remuneration consultants, which informs Board decision-making

54

==> picture [686 x 89] intentionally omitted <==

Macquarie Group Limited 2009 Annual General Meeting

29 July 2009

==> picture [686 x 89] intentionally omitted <==

Macquarie Group Limited Glossary Annual General Meeting 29 July 2009

==> picture [686 x 91] intentionally omitted <==

----- Start of picture text -----

Glossary
----- End of picture text -----

Excluding Ex Earnings Per Share EPS Financial Times and the London Stock Exchange FTSE Equity Capital Markets ECM Dividend Per Share DPS $A Australian dollar $US US dollar 1H09 First Half ended 30 September 2009 1H10 First Half ending 30 September 2010 2H09 Second Half ended 31 March 2009 4Q09 Fourth Quarter ended 31 March 2009 1Q10 First Quarter ended 31 March 2010 ASX Australian Securities Exchange AUM Assets Under Management BFS Banking and Financial Services BRC Board Remuneration Committee BRIC Brazil, Russia, India and China CEO Chief Executive Officer CMA Cash Management Account CMT Cash Management Trust CY2007 Calendar Year 2007

57

==> picture [686 x 91] intentionally omitted <==

----- Start of picture text -----

Glossary
----- End of picture text -----

Month Mth Morgan Stanley Capital International MSCI Number No. Macquarie Group Limited (ASX listed) MQG Macquarie Private Wealth MPW FY09 Full year ended 31 March 2009 FY10 Full year ending 31 March 2010 GDP Gross Domestic Product IMF International Monetary Fund IPO Initial Public Offering JV Joint Venture LIBOR London Interbank Offered Rate M&A Mergers and Acquisitions MAp Macquarie Airports MBL Macquarie Bank Limited MCG Macquarie Communications Infrastructure Group MCW Macquarie Countrywide MFG Macquarie Funds Group MGL Macquarie Group Limited MIPS Macquarie Income Preferred Securities MMG Macquarie Media Group

58

==> picture [686 x 91] intentionally omitted <==

----- Start of picture text -----

Glossary
----- End of picture text -----

Year Yr Volatility Index VIX NPAT Net Profit After Tax OIS Overnight Indexed Swap P.a Per annum Pcp Prior corresponding period Q1 First Quarter Qtr Quarter Quant Quantitative REIT Real Estate Investment Trust ROE Return on Equity S&P Standard and Poor ST Short Term TARP Troubled Asset Relief Program TSR Total Shareholder Return UK United Kingdom US United States of America USCP United States Commercial Paper

59

==> picture [686 x 89] intentionally omitted <==

Macquarie Group Limited 2009 Annual General Meeting

29 July 2009