Macquarie Group Limited — AGM Information 2013

Jul 24, 2013

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Macquarie Group Limited 2013 Annual General Meeting 25 July 2013

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 summary form and does not purport to be complete. Information in this presentation, including forecast financial information, should not be considered as advice or a recommendation to investors or potential investors in relation to holding, purchasing or selling securities or other financial products or instruments and does not take into account your particular investment objectives, financial situation or needs. Before acting on any information you should consider the appropriateness of the information having regard to these matters, any relevant offer document and in particular, you should seek independent financial advice. All securities and financial product or instrument transactions involve risks, which include (among others) the risk of adverse or unanticipated market, financial or political developments and, in international transactions, currency risk.

This presentation may contain forward looking statements including statements regarding our intent, belief or current expectations with respect to Macquarie’s businesses and operations, market conditions, results of operation and financial condition, capital adequacy, specific provisions and risk management practices. Readers are cautioned not to place undue reliance on these forward looking statements. Macquarie does not undertake any obligation to publicly release the result of any revisions to these forward looking statements to reflect events or circumstances after the date hereof to reflect the occurrence of unanticipated events. 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 Macquarie’s control. Past performance is not a reliable indication of future performance.

Unless otherwise specified all information is for the year ended 31 March 2013.

Certain financial information in this presentation is prepared on a different basis to the Macquarie Group Limited Financial Report, which is prepared in accordance with Australian Accounting Standards. Where financial information presented within this presentation does not comply with Australian Accounting Standards, a reconciliation to the statutory information is provided.

This report provides further detail in relation to key elements of Macquarie Group Limited’s financial performance and financial position. It also provides an analysis of the funding profile of the Group because maintaining the structural integrity of the Group's balance sheet requires active management of both asset and liability portfolios. Active management of the funded balance sheet enables the Group to strengthen its liquidity and funding position.

Any additional financial information in this presentation which is not included in the Macquarie Group Limited Financial Report was not subject to independent audit or review by PricewaterhouseCoopers.

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2013 Annual General Meeting Kevin McCann AM Chairman

Macquarie Group Limited 2013 Annual General Meeting 25 July 2013

Global financial market conditions

• This time last year we reflected on increased global uncertainty with concerns over the US debt ceiling, the European debt crisis and slowing growth in China further eroding confidence and severely impacting client activity

• FY13 saw a general improvement in market conditions. Client activity however remained subdued, particularly for Macquarie’s capital markets facing businesses reflecting the continuation of concerns regarding Europe and China, however the US is showing increasing confidence and growth

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Market conditions in FY13 showed signs of improvement

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GLOBAL INDICES [1 ] VIX [1 ]
Movement since Mar 12 50
130 Macquarie (+27.8%)
MSCI World Capital Markets Index (+12.7%) 45
ASX200 (+14.6%)
120
S&P500 (+11.4%) 40
Hang Seng (+8.5%)
110 35
100 30
25
90
20
80
15
70
10
60
5
50 0
Mar 11 Jun 11 Sep 11 Dec 11 Mar 12 Jun 12 Sep 12 Dec 12 Mar 13 Mar 11 Jun 11 Sep 11 Dec 11 Mar 12 Jun 12 Sep 12 Dec 12 Mar 13
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1. Indices data and VIX data to 31 Mar 13. Source: Bloomberg.

Market conditions in FY13 showed signs of improvement

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OECD LEADING INDICATORS [1 ] US CREDIT SPREADS
6 mth annualised %
Bps over 10 yr Treasuries Bps over 10 yr Treasuries
change
800 800
2.5 Australia United States Europe China OECD - Total AAA spread BAA spread High yield spread
1.5
0.5
-0.5 400 400
-1.5
Improvement globally, with the
exception of Australia which
-2.5 continues to be challenged by the
slow down in mining investment
-3.5 0 0
Mar 11 Jun 11 Sep 11 Dec 11 Mar 12 Jun 12 Sep 12 Dec 12 Mar 13 Mar 11 Jun 11 Sep 11 Dec 11 Mar 12 Jun 12 Sep 12 Dec 12 Mar 13
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1. Source: OECD.

Financial performance Profit in 1H13 and 2H13 both up on pcp

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$Am FY13 Operating income of $A6,700m FY13 Profit of $A851m
FY13 down 4% on FY12 $Am FY13 up 17% on FY12
800
2H13 up 18% on 1H13 2H13 up 36% on 1H13
4,000
400
2,000
0 0
1H12 2H12 1H13 2H13 1H12 2H12 1H13 2H13
$A FY13 EPS of $A2.51 $A FY13 DPS of $A2.00
FY13 up 20% on FY12 FY13 up 43% on FY12
2.00
2H13 up 38% on 1H13 2H13 up 67% on 1H13
1
1.00
0.00 0
1H12 2H12 1H13 2H13 1H12 2H12 1H13 2H13
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Dividends

• FY13 dividend set at $A2.00, 79% payout ratio, up on FY12 dividend of $A1.40

• 2H13 dividend $A1.25 up on 1H13 dividend of $A0.75

• 2H13 dividend is 40% franked

• The Board has resolved that the annual dividend payout ratio policy will be in the range of 60-80%

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44 years of profitability

$Ab 2.0 Macquarie 1.8 Full Year Profit 1.6 1.4 1.2 1.0 0.8 0.6 0.4 0.2 0

$A851m 17%

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Macquarie total shareholder return continues to outperform international investment banks

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•
Macquarie’s 10 year average Return on Equity: 17.3% compares to industry average [1] : 10.0%
%
600 Macquarie Group
International investment banks [2 ]
500
400
300
200
100
-
Jun 03 Jun 04 Jun 05 Jun 06 Jun 07 Jun 08 Jun 09 Jun 10 Jun 11 Jun 12 Jun 13
1. Industry return on equity (ROE) includes ROE of investment banks where this information is publicly available. Average of most recent 10 years, except in cases where 10 years of continuous data is not available for an investment
bank, in which case the longest time period for which continuous data is available for that investment bank has been used. Source: Factset. as at 30 Jun 13. 2. International investment banks comprise Bank of America, Barclays,
Citigroup, Credit Agricole, Credit Suisse, Deutsche Bank, Goldman Sachs, JP Morgan, Morgan Stanley, Nomura and UBS. PAGE 10
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1. Industry return on equity (ROE) includes ROE of investment banks where this information is publicly available. Average of most recent 10 years, except in cases where 10 years of continuous data is not available for an investment bank, in which case the longest time period for which continuous data is available for that investment bank has been used. Source: Factset. as at 30 Jun 13. 2. International investment banks comprise Bank of America, Barclays, Citigroup, Credit Agricole, Credit Suisse, Deutsche Bank, Goldman Sachs, JP Morgan, Morgan Stanley, Nomura and UBS.

Macquarie’s total shareholder return continues to track global capital markets firms

• Since the GFC, Macquarie has outperformed the MSCI World Capital Markets Index by 30%[1 ]

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% Macquarie (-6.7%) MSCI World Capital Markets Index (-36.9%)
140
120
100
80
60
40
20
0
Aug 07 Feb 08 Aug 08 Feb 09 Aug 09 Feb 10 Aug 10 Feb 11 Aug 11 Feb 12 Aug 12 Feb 13 Jul 13
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1. Source: Factset. MSCI World Capital Markets and is presented on a total return basis, quoted in USD and rebased to 1 Aug 07. Data to 23 July 2013.

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Key board and management changes

• Catherine Livingstone will be retiring as a director of Macquarie Group Limited and Macquarie Bank Limited

• Peter Maher announced his intention to retire from Macquarie. Peter has been Group Head of Banking and Financial Services (formerly Financial Services Group) for over 12 years

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Michael Coleman was appointed to the board on 9 November 2012 and will succeed Catherine as Chairman of the Board Audit Committee following the AGM

Nicole Sorbara was appointed Chief Operating Officer and Head of the newly formed Corporate Operations Group. Nicole also joined Macquarie’s Executive Committee

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Gary Banks has been appointed to the Macquarie Group and Macquarie Bank Boards, effective 1 August 2013. Gary was chairman of the Productivity Commission from its inception in 1998 until 2012. He is currently Dean and CEO of the Australia and New Zealand School of Government

Greg Ward succeeded Peter Maher as Group Head of BFS in addition to his current position as Deputy Managing Director of Macquarie Group Limited and Chief Executive Officer of Macquarie Bank Limited

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MACQUARIE GROUP FOUNDATION

$A190m DONATED SINCE INCEPTION

1,300+ ORGANISATIONS

5,000+ DAYS CONTRIBUTED

Named the leading Australian corporate donor by Philanthropy Australia

HOSPICIO DE SAN JOSE, MANILA

Overview of the Result for the year ended 31 March 2013 Nicholas Moore Managing Director and Chief Executive Officer

Macquarie Group Limited 2013 Annual General Meeting 25 July 2013

Result reflected improved 2H13 market conditions

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FY13 vs FY12 2H13 vs 1H13
Operating income $A6.7b 4% $A3.6b 18%
Operating expenses $A5.3b 10% $A2.7b 7%
Operating profit before tax $A1.4b 34% $A888m 72%
Tax expense $A533m 86% $A377m 142%
Profit $A851m 17% $A490m 36%
Earnings per share $A2.51 20% $A1.46 38%
Dividends per share $A2.00 43% $A1.25 67%
Return on Equity 7.8% from 6.8% 8.9% from 6.6%
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Diversified by region International income[1] 63% of total Total staff 13,663; International staff 55% of total

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EUROPE, MIDDLE EAST
ASIA AMERICAS
& AFRICA [2]
Income: $A1,221m (19% of total) Income: $A743m (11% of total) Income: $A2,199m (33% of total)
Staff: 1,193 Staff: 3,093 Staff: 3,253
AUSTRALIA [3]
Income: $A2,395m (37% of total)
Staff: 6,124
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1. Operating income net of impairment charges for the year to 31 Mar 13. Operating income in each region excludes earnings from the Corporate segment of $A293m. 2. Excludes staff in Macquarie First South joint venture and staff seconded to Macquarie Renaissance joint venture (Moscow). 3. Includes New Zealand.

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MACQUARIE FUNDS

Strong product performance. Record AUM

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PERFORMANCE FUND GROWTH RESULT
MIRA AWARDS [1 ] PROFIT
$A343.5b AUM 6 %
• No.1 in “Top 30” investors
• 2012 “Asian Infrastructure Fund Manager Macquarie
of the Year” $A755m
"Best Infrastructure" & "Best Real B‟field # 1
Estate" Fund Manager House Awards for 2012 GIP CPP APG Global Infrastructure Manager [1 ]
MIM AWARDS [2] 17 %
$A8.4b [3] MIRA new equity and
capital growth
MEIF4 MMREIT MEGCIF 3 Funds PINAI
MIM AUM up $A12b cross-border
$A300m MSIS capital protected
10 across the US and Europe investments
MFG
$ A164m Performance fees Infrastructure debt strategy $US500m
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1. For more information about these awards and recognition, the issuers of the awards, their methodologies, and other important information about these awards please visit http://mirafunds.com/about-mira/recognition-and-awards . 2. For more information about these awards, the issuers of the awards, their methodologies, and other important information about these awards please visit www.macquarie.com.au/mgl/au/mfg/mim/about-us/awards. 3.Includes fund closings post 31 Mar 13.

CORPORATE AND ASSET FINANCE

Record asset finance books

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PERFORMANCE FY13 PORTFOLIO GROWTH RESULT
FY13 Portfolio growth
PROFIT
Acquired: Rail portfolio
9 %
$A22.4b
Asset and Loan Portfolio Established: Motor vehicle $A694m
business in the UK
LENDING Broadly in line
Expanded: Meters $A0.7b with record FY12
$A3.3b
New in FY13 Expanded: Motor vehicle leasing
240,000+ contracts
Expanded: Technology equipment
MOTOR VEHICLE LEASING
programs
$A7.3b 18 %
Portfolio Expanded: Mining equipment
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BANKING AND FINANCIAL SERVICES Record profit PERFORMANCE INITIATIVES RESULT PROFIT 7 Completed Perpetual platform transfer $A31b to Macquarie Wrap Total Retail Deposits[%] Mortgages $A335m distribution $A25.1b 14 % $A11.8b 9 % Wrap FUA Australian 22 % Mortgages Acquired Pacific Premium funding $A155m 24 % 26 % DEFT Life insurance Wrap Consolidator Platform Transactions by premiums value $A3.5b after 2 years Global client numbers 1.13m # 1 # 1 CHALLENGES Australia Canadian Full-service Independent ASIC Enforceable Undertaking retail stockbroker, Private Wealth[2 ] ~~leading wrap platform[1]~~ 1. IRESS: consideration traded and volume 31 Mar 13. 2. Investment Executive Brokerage Report Card 2012 (Canada).

MACQUARIE SECURITIES

Weak markets. Profitable second half

PERFORMANCE

Australian Top ranked Institutional sales & research[1 ]

Top Asian Institutional 10 sales & research[2 ] Asian execution Singapore # 1 broker[3 ] # 1 listed warrants[4 ] 2220+ Stocks covered

INITIATIVES

ETF market making – Europe, Asia Growth – North America China QFII quota CHALLENGES Weak investor confidence Historically low ECM activity Legacy businesses

RESULT LOSS $A (50) m vs. FY12 $A(194)m

1. Peter Lee Associates Survey of Asian/Australian Institutional Investors – Australian Equities. 2. Greenwich Survey of Asian Institutional Investors - Asian Equities. 3. Abel Nosser 2013. 4. Market share by turnover.

MACQUARIE CAPITAL

Weak markets. Profit up 76%

PERFORMANCE INITIATIVES 447 $A85b[1 ] Continued focus on key sector specialities Deals Value One of the Cost management Australian Global real largest M&A estate infrastructure

1 transactions[2 ] # 1 private advisory CHALLENGES placements[3 ] teams globally DCM and Lack of market confidence debt advisory 9 % fee income Low M&A and ECM activity AWARDS Global M&A Deal of the Year[[4 ]] Legacy impairments

Global M&A Deal of the Year[[4 ]] Real Estate Deal of the Year[5 ] Best Hong Kong Deal of the year[6 ] North American Toll Road Deal of the Year[7 ]

RESULT PROFIT $A150m 76 %

1. Total includes cross-border transactions: Asia (6 transactions), US (10), ANZ (14), Canada (7) and Europe (7). Some cross-border transactions involve three or more regions. 2. Thomson Financial, announced and completed, CY12 (by volume). 3. Preqin, Jan 13; PERE (excludes capital raised for own funds and affiliates). 4.PFI Awards (Open Grid Europe). 5. M&A Advisor Awards (Charter Hall Office REIT). 6. FinanceAsia (China Gas). 7. Project Finance Magazine Awards (Downtown Tunnel/Midtown Tunnel/MLK Extension).

FIXED INCOME, CURRENCIES & COMMODITIES General improvement in market conditions across most businesses, offset by weak resource equity markets

PERFORMANCE

INITIATIVES

RESULT

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4
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MGL Funding

PROFIT

Commodity Investor Products business established

business established $A563m Credit Trading – US 4 % Futures – Asia, Canada

Securitisation for Paragon Mortgages

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1
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Physical commodities

CHALLENGES

Weak investor sentiment in resource equity markets

Business backed by strong funding and capital

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MGL FUNDED BALANCE SHEET APRA BASEL III SURPLUS CAPITAL [2] CREDIT RATINGS
31 March 2013 31 March 2013 31 March 2013
$ Ab
90
80
Short-term [1 ]
Cash
70
60
Retail deposits
50 Trading &
short-term
40
$A3.1b
30 22 years 16 years 21 years
20 Term Term
10 „A‟ RATED
0
Funding Assets
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1. Short-term funding includes wholesale deposits and ST wholesale issued paper. For details regarding reconciliation of the funded balance sheet to the Group’s statutory balance sheet, refer to slide 51. 2. Calculated at 7% RWA.

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1Q14 Update Nicholas Moore Managing Director and Chief Executive Officer

Macquarie Group Limited 2013 Annual General Meeting 25 July 2013

1Q14 Macquarie Update

• 1Q14 operating groups’ contribution[1] ahead of subdued pcp (1Q13) and prior quarter (4Q13)

• Annuity-style businesses[2] up on pcp and prior quarter, with a strong performance from MFG

• Capital markets facing businesses[3] up significantly on a subdued pcp, with a profitable Macquarie Securities up on 1Q13

• No significant one-off items

• This represents management accounting profit before unallocated corporate costs, profit share, income tax and period end review. 2. Annuity-style businesses represent Macquarie Funds Group, Corporate Asset and Finance and Banking and Financial Services. 3. Capital markets facing businesses represents Macquarie Securities, Macquarie Capital and Fixed Income, Currencies and Commodities.

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Annuity-Style Businesses 1Q14 Update

Macquarie Funds Group

• AUM increased 10% to $A379.3b[1] in 1Q14, mainly driven by FX movements and investment of MIRA funds, partially offset by negative market movements and MIRA asset disposals

• Strong 1Q14 performance fees of $A65m, predominantly from Macquarie Infrastructure Company, Macquarie Atlas Roads and Macquarie Korea Opportunities Fund

• • Macquarie was recognised as the world’s largest manager of alternative assets (Towers Watson) • MEIF4 closed with €2.75b in investors commitments, well above its €1.5-2b target, taking total MIRA fundraising to $US9.3b in last two years

• MIM has entered into an agreement to acquire ING Investment Management Korea from ING Group[2] . ING Investment Management Korea is a top 10 asset manager in Korea with AUM of KRW 25.2 trillion (approx. $A24b)

• The securities investment management business won a range of new mandates (including a large Australian currency mandate and its first Thai mandate) and expanded its capabilities to include an Asian Mid Cap strategy

• Macquarie Specialised Investment Solutions raised $A435m for Australian capital protected investments

Corporate and Asset Finance

• Asset and loan portfolio of $A24.3b, up $A1.9b on 31 Mar 13 mainly due to foreign exchange translation

• $A1.0b of portfolio additions in corporate and real estate lending across new primary financings and secondary market acquisitions, including acquisition of portfolio of US wind farms tax equity financings broadly offset by early repayments and disposals

• Securitisation activity continues, with $US750m of motor vehicle leases and loans secured during 1Q14

• • Continued growth in metering portfolio

• Ongoing growth of motor vehicle and equipment finance programs

• • Mining equipment finance business continues to expand

• Macquarie Private Wealth remains No.1 ranked full-service retail stockbroker in Australia Banking and • Financial • Retail deposits exceed $A32b • Acquired Pacific Premium Funding on 1 April 2013 Services • ASIC Enforceable Undertaking compliance project progressing well and remains on track

• Wrap platform FUA up 32% from 31 Mar 13 to $A33b due to the successful integration of the Perpetual platform

• • Retail deposits exceed $A32b

• Excludes AUM associated with ING Investment Management Korea acquisition. 2. Subject to certain closing conditions including regulatory approval . Refer press release, dated 10 Jul 13, available at http://www.macquarie.com/mgl/com/news/2013 .

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Market Facing Businesses 1Q14 Update

Macquarie Securities Group	• Modest improvement in global market volumes however ECM markets, whilst improved on pcp, remain subdued • No.1 ranking in US and UK/European client surveys for Australian equities1, No.1 market share in Singapore warrants2and Indonesian ADRs3, Top 4 ranking in US client surveys for Asian Equities1and Top 20 franchise for US investors in US equities1 • Significant reduction in legacy expenses
Macquarie Capital	• 102 deals at $A14b, down 26% on prior period and down 29% on pcp (by value) • Subdued M&A activity offset by improved ECM and principal performance • No.1 in Australia for completed M&A deals4 • No.1 in South East Asia for announced M&A deals4 • Best Project Finance Adviser (EMEA)5 • Global Energy Acquisition of the Year (Open Grid Europe acquisition)6 • US Deal Maker of the Year (Carmichael International acquisition)7
Fixed Income, Currencies and Commodities	• Improved volatility across FX and some commodity markets resulting in increased client hedging activity and trading opportunities, however resource equity markets continue to remain challenging • Recent weak sentiment in credit markets • Maintained ranking as No.4 US physical gas marketer in North America8 • No.2 overall market share in ASX24 Futures9

1. Greenwich Associates. 2. Market share by NOIP ‘Net over intrinsic premium’. 3. Bloomberg (using Rank Function, excluding trading firms). 4. Dealogic HY13 (by value). 5. EMEA Finance Award 6. Infrastructure Journal. 7. Acquisition International Magazine . 8. Platts Q1 2013. 9. ASX24 Futures volumes 1 Apr 13 to 30 Jun 13.

PAGE 28

Funded balance sheet remains strong

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$Ab 31 March 2012 $Ab 31 March 2013 $Ab 30 June 2013
100 100 100
90 90 90 ST wholesale issued paper
ST wholesale issued paper ST wholesale issued paper (6%) (11%) Cash and liquid
80 Other debt maturingnext 12 mths (7%) (7% [1] in the ) Cash and liquid 80 Other debt maturingnext 12 mths (11%) [1] in the Cash and liquid assets (23%) 80 Other debt maturingnext 12 mths (9%) [1] in the assets (22%)
70 Wholesale Deposits (6%) assets (27%) 70 Wholesale Deposits (6%) 70 Wholesale Deposits (6%) Self-Securitisations (8%)
Self-Securitisations (7%)
60 Self-Securitisations (3%) 60 60 Trading assets
50 Retail Deposits (33%) Trading assets (18%) 50 Retail Deposits (35%) Trading assets (17%) 50 Retail Deposits (34%) (17%)
Loan assets
Loan assets Loan assets < 1 year (12%)
40 < 1 year (9%) 40 < 1 year (11%) 40
30 Debt maturing [2] 30 Debt maturing [2] 30 Debt maturing [2]
20 beyond 12 mths (33%) > 1 year (34%) Loan assets 20 beyond 12 mths (28%) > 1 year (34%) Loan assets 20 beyond 12 mths (27%) > 1 year (33%) Loan assets
10 10 10
Equity and hybrids Equity and hybrids Equity and hybrids
(14%) Equity Investments and PPE (9%) (14%) Equity Investments and PPE (8%) (13%) Equity Investments and PPE (8%)
0 0 0
Funding sources Funded assets Funding sources Funded assets Funding sources Funded assets
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These charts represent Macquarie Group Limited’s funded balance sheets at the respective dates noted above. For details regarding reconciliation of the funded balance sheet to the Group’s statutory balance sheet, refer to slide 51. 1.‘Other debt maturing in the next 12 mths’ includes Structured Notes, Secured Funding, Bonds, Other Bank Loans maturing within the next 12 months and Net Trade Creditors. 2.‘Debt maturing beyond 12 mths’ includes Loan Capital. ‘Loan Assets > 1 yr’ includes Debt Investment Securities, Net working capital, and Assets held for sale.

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Stable Basel III surplus

• APRA Basel III Group capital of $A13.4b[1] , Group surplus of $A2.8b[2] at Jun 13

• In May 2013, APRA issued its draft rules for Conglomerates. Whilst the rules are yet to be finalised, our current assessment is that Macquarie has sufficient capital to meet the minimum APRA capital requirements for Conglomerates, which are expected to take effect from 1 Jan 14

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$Ab Group regulatory surplus: Basel III (Jun 13)
5.0
4.5
4.0 4.4 (0.6) 0.4
4.2
3.5 (1.4)
3.0
Includes current
quarter P&L and
2.5 net FX and capital 2.8
2.0 Based on 8.5% (minimum Tier 1 requirement movements
1.5 3.4 ratio + CCB), which 3.2
is not required by
APRA until 2016
1.0 1.9
0.5
0.0
Harmonised Basel III FY13 Final Dividend Other5 Harmonised Basel III APRA Basel III APRA Basel III
at Mar 13 3 and MEREP4 at Jun 13 'super equivalence'6 at Jun 13
Group regulatory surplus at 8.5% RWA Group regulatory surplus at 7% RWA
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1. Includes Macquarie Capital Notes (MCNs) but not Macquarie Convertible Preference Securities (CPSs), the latter having been redeemed 1 July 2013. 2. Calculated at 7% RWA. 3. ‘Harmonised’ Basel III estimates assume alignment with BIS in areas where APRA differs from the BIS. 4. Includes $A216m MEREP on market purchase and $A420m FY13 final dividend. 5. Includes the net impact of hedging employed to reduce the sensitivity of the Group’s capital position to FX translation movements. 6. APRA Basel III ‘super equivalence’ includes full CET1 deductions of equity investments ($A0.7b); deconsolidated subsidiaries ($A0.4b); DTAs and other impacts ($A0.3b).

PAGE 30

Impact of movements in AUD

Income statement

63% of operating income is generated offshore[1 ]

All things being equal, for a 10% movement in the AUD, the full year impact on earnings is estimated to be approximately 6%

Balance sheet & capital ratios

Foreign currency denominated assets and liabilities are appropriately hedged to minimise the impact of foreign exchange movements on income and capital ratios

1. As at 31 Mar 13.

PAGE 31

Outlook Nicholas Moore Managing Director and Chief Executive Officer

Macquarie Group Limited 2013 Annual General Meeting 25 July 2013

Short term outlook

• Summarised below are the outlook statements for each Operating Group

• FY14 results will vary with market conditions, particularly the capital markets facing businesses which continue to experience subdued market conditions

	Net profit contribution	Net profit contribution	Net profit contribution	Net profit contribution	Net profit contribution
Operating Group	FY07- FY13 historical range	FY07-FY13 average	FY13	FY14 outlook as announced at FY13 result	Update to FY14 outlook
Macquarie Funds	$A0.3b – $A1.1b	$A0.7b	$A0.8b	Broadly in line with FY13, subject to performance fees	Up on FY13 due to base and performance fees and impact of FX
Corporate and Asset Finance	$A0.1b – $A0.7b1	$A0.4b	$A0.7b	Broadly in line with FY13	No change
Banking and Financial Services	$A0.1b – $A0.3b2	$A0.3b	$A0.3b	Broadly in line with FY13	No change
Macquarie Securities	$A(0.2)b – $A1.2b	$A0.4b	$A(50)m	Up on FY13	No change
Macquarie Capital	$A(0.1)b – $A1.6b	$A0.5b	$A0.2b	Up on FY13	No change
FICC	$A0.5b – $A0.8b	$A0.6b	$A0.6b	Up on FY13	Broadly in line with FY13 given likely impairments in MEC
Corporate	– Compensation ratio to be consistent with historical levels – Continued higher cost of funding reflecting market conditions and high liquidity levels – Based on present mix of income, currently expect tax rate to be broadly in line with FY13

1. Range excludes FY09 provisions for loan losses of $A135m related to Real Estate Structured Finance loans as this is a restructured business. 2. Range excludes FY09 loss on sale of Italian mortgages of $A248m as this is a discontinued business.

PAGE 33

Short term outlook

• Since our FY13 result announcement on 3 May 2013, there have been changes to the short term outlook for some of the operating groups:

• MFG: FY14 to be up on FY13 due to base and performance fees and impact of FX

• FICC: FY14 to be broadly in line with FY13 given likely impairments in MEC

• Accordingly, consistent with our previous statement, while market volatility makes forecasting difficult, it is currently expected that the FY14 net profit contribution from operating groups will be up on FY13

• Tax rate is currently expected to be broadly in line with FY13

• Accordingly, FY14 result for the Group is expected to be an improvement on FY13 provided market conditions for FY14 are not worse than those experienced over the past 12 months

– In line with previous years, it is currently expected that the 2H14 result will be stronger than 1H14

• The FY14 result also remains subject to a range of other challenges including:

• the cost of our continued conservative approach to funding and capital;

• regulation, including the potential for regulatory changes;

• increased competition in some markets; and

• the overall cost of funding

PAGE 34

Medium term

Macquarie remains well positioned to deliver superior performance in the medium term

• Deep expertise in major markets

• Build on our strength in diversity and continue to adapt our portfolio mix to changing market conditions

• Annuity-style income is provided by three significant businesses which are delivering superior returns following years of investment and recent acquisitions

  • Macquarie Funds, Corporate and Asset Finance and Banking and Financial Services

• Three capital markets facing businesses well positioned to benefit from improvements in market condition with strong platforms and franchise positions

  • Macquarie Securities, Macquarie Capital and Fixed Income, Currencies and Commodities

• Ongoing benefits of continued cost initiatives

• Strong and conservative balance sheet

• Well matched funding profile with minimal reliance on short term wholesale funding

• Surplus funding and capital available to support growth

• Proven risk management framework and culture

PAGE 35

Approximate business Basel III & ROE

Operating Group	APRA Basel III Capital @ 8.5% ($Ab)	Approx. FY13 Return on Ordinary Equity1
Annuity-style businesses Approx. 7-Year Average Return on Ordinary Equity1
Macquarie Funds Group	1.8	20%	20%2
Corporate and Asset Finance	2.1
Banking and Financial Services	1.0
Capital markets facing businesses Approx. 7-Year Average Return on Ordinary Equity1
Macquarie Securities	0.5	-	15%-20%
Macquarie Capital	1.1
FICC	2.6	11%
Corporate and Other
Legacy Assets	0.9
Corporate	0.7
Total regulatory capital requirement @ 8.5%	10.7
Comprising: Ordinary Equity Hybrid	9.1 1.6	1. NPAT used in the calculation of approx.	ROE is based on Operating Group’s	net profit contribution adjusted for
Add: Surplus Ordinary Equity	2.2	indicative allocations of profit share, tax an businesses based on regulatorycapital req	d other corporate expenses. Account uirements. 7-year average covers F	ing equity is attributed to Y07 to FY13, inclusively.
Total APRA Basel III capital supply	12.9	~~2. CAF excluded from 7-year average as n~~ over the 7-year period.	~~ot meaningful given the significant in~~	~~crease in scale of CAF’s platform~~

PAGE 36

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Macquarie Group Limited 2013 Annual General Meeting 25 July 2013

Formal Business Kevin McCann AM Chairman

Macquarie Group Limited 2013 Annual General Meeting 25 July 2013

Item 1: Financial Statements

• To consider and receive the Financial Report, the Directors’ Report and the Auditor’s Report of Macquarie for the financial year ended 31 March 2013

PAGE 39

Item 2: Re-election of Mr MJ Hawker as a Voting Director

• To consider and, if thought fit, pass the following as an ordinary resolution:

– That Mr MJ Hawker be re-elected as a Voting Director of Macquarie

PAGE 40

• Item 3: Election of Mr MJ Coleman as a Voting Director

• To consider and, if thought fit, pass the following as an ordinary resolution:

• That Mr MJ Coleman, having been appointed as a Voting Director since the last general meeting, be elected as a Voting Director of Macquarie

PAGE 41

Item 4: Remuneration Report

• To consider and, if thought fit, pass the following as an ordinary resolution:

– To adopt the Remuneration Report of Macquarie for the year ended 31 March 2013

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Macquarie’s remuneration approach

• Macquarie’s remuneration system is designed to balance risk and return

• Key elements of Macquarie’s remuneration framework:

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

Align interests of
staff and
shareholders
Drive long-term
shareholder
returns while
prudently
managing risk
Attract and retain
high quality
people
----- End of picture text -----

PAGE 43

Improved business results while appropriately managing remuneration

		2013	2012	% CHANGE
Performance measures
NPAT	$Am	851	730	17
Basic EPS	Cents per share	251.2	210.1	20
Dividends	Cents per share	200.0	140.0	43
Annual TSR	Per cent	34.4	(16.0)
Executive remuneration measures
Total compensation expense	$Am	3,072	3,335	(8)
Compensation expense to income ratio	Per cent	45.9	47.9

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Key features of Macquarie’s remuneration system

Key Area	Executive Committee and Designated Executive Directors	Other Executive Directors	Staff below Executive Director
Amount of profit share deferred	50-70% 70% for the Managing Director and CEO	40-70%	25% to 70% dependent on certain thresholds
Vesting	3 to 7 years after the year retained	3 to 5 years after the year retained	2 to 4 years after the year retained
Forfeiture whilst employed	Board discretion to apply Malus in certain circumstances	Board discretion to apply Malus to certain Executive Directors in certain circumstances	Board discretion to apply Malus to certain staff in certain circumstances
Forfeiture on leaving	Unvested amounts are forfeited except in limited circumstances

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• Item 5: Approval of termination benefits

• To consider and, if thought fit, pass the following as an ordinary resolution:

– That approval be given for all purposes (including for the purposes of sections 200B and 200E of the Corporations Act 2001) for the giving of all benefits to current or future key management personnel of the Company or persons who hold a managerial or executive office in the Company or a related body corporate, in connection with the person ceasing to hold an office or position of employment in the Company or a related body corporate, as set out in the Explanatory Notes to the Notice of Meeting convening this meeting

PAGE 46

Item 6: Approval of Executive Voting Director’s participation in the Macquarie Group Employee Retained Equity Plan (MEREP)

• To consider and, if thought fit, pass the following as an ordinary resolution:

• That the following be approved for all purposes:

a) participation in the Macquarie Group Employee Retained Equity Plan (MEREP) by Mr NW Moore, Managing Director and Chief Executive Officer; and

• b) acquisition by Mr NW Moore of Restricted Share Units and Performance Share Units and the acquisition of shares in the Company in respect of those Restricted Share Units and Performance Share Units,

all in accordance with the terms of the MEREP and on the basis described in the Explanatory Notes to the Notice of Meeting convening this meeting

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• Item 7: Approval of the issue of Macquarie Group Capital Notes

• To consider and, if thought fit, pass the following as an ordinary resolution:

– That the issue of up to 6,000,000 Macquarie Group Capital Notes by the Company, on the terms and conditions as summarised in the Explanatory Notes to the Notice of Meeting convening this meeting and set out in the replacement prospectus issued by the Company and dated 22 May 2013, is approved for all purposes (including ASX Listing Rule 7.1)

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Macquarie Group Limited 2013 Annual General Meeting 25 July 2013

Appendix

Macquarie Group Limited 2013 Annual General Meeting 25 July 2013

Funded balance sheet reconciliation

• The Group’s statutory balance sheet is prepared based on generally accepted accounting principles which do not represent actual funding requirements

• A funded balance sheet reconciliation has been prepared to reconcile the reported assets of the consolidated Group to the assets that require funding

	Jun 13	Mar 13	Mar 12
	$Ab	$Ab	$Ab
Total assets per Statutory Balance Sheet	156.6	150.8	153.6
Deductions:
Self funded trading assets	(15.9)	(13.6)	(10.0)
Derivative revaluation accounting gross ups	(15.9)	(14.4)	(20.5)
Life investment contracts and other segregated assets	(5.5)	(11.5)	(9.0)
Broker settlement balances	(9.1)	(7.7)	(9.2)
Short-term working capital assets	(5.5)	(5.2)	(5.7)
Less non-recourse funded assets:
Securitised assets and non-recourse warehouses	(10.8)	(10.8)	(13.0)
Total assets per Funded Balance Sheet	93.9	87.6	86.2

PAGE 51

Glossary

Macquarie Group Limited 2013 Annual General Meeting 25 July 2013

Glossary

$A	Australian Dollar
$US	United States Dollar
€	Euro
1H	First Half
1H13	Half Year ended 30 September 2012
1Q13	First Quarter ended 30 June 2012
1Q14	First Quarter ended 30 June 2013
2H13	Half Year ended 31 March 2013
4Q13	Fourth Quarter ended 31 March 2013
ADR	American Depository Receipts
AGM	Annual General Meeting
ANZ	Australia and New Zealand
Approx.	Approximately
APRA	Australian Prudential Regulation Authority
ASX	Australian Securities Exchange
AUM	Assets Under Management
BIS	Bank for International Settlements
Bps	Basis Points

CAF	Corporate and Asset Finance
CCB	Capital Conservation Buffer
CEO	Chief Executive Officer
CET1	Common Equity Tier 1
Cth	Commonwealth
CY12	Calender Year ending 31 December 2012
DCM	Debt Capital Markets
DPS	Dividend Per Share
DTA	Deferred Tax Asset
ECM	Equity Capital Markets
EMEA	Europe, the Middle East and Africa
EPS	Earnings Per Share
ETF	Exchange Traded Fund
FICC	Fixed Income, Currencies and Commodities
FUA	Funds Under Administration
FY	Financial Year
FY07	Financial Year ended 31 March 2007
FY09	Financial Year ended 31 March 2009

PAGE 53

Glossary

FY12	Financial Year ended 31 March 2012
FY13	Financial Year ended 31 March 2013
FY14	Financial Year ended 31 March 2014
FX	Foreign Exchange
GFC	Global Financial Crisis
HY13	Half Year ending30 June 2013
IPO	Initial Public Offering
KRW	Korean Won
M&A	Mergers and Acquisitions
MEC	Metals and EnergyCapital
MEIF	Macquarie European Infrastructure Fund
MEREP	Macquarie GroupEmployee Retained EquityPlan
MBL	Macquarie Bank Limited
MIM	Macquarie Investment Management
MIRA	Macquarie Infrastructure and Real Assets
MQG	Macquarie GroupLimited
MGL	Macquarie GroupLimited
MSCI	Morgan StanleyCapital International
MSIS	Macquarie Specialised Investment Solutions

Mth	Month
No.	Number
NPAT	Net Profit After Tax
OECD	Organisation for Economic Co-operation and Development
P&L	Profit and Loss Statement
Pcp	Prior CorrespondingPeriod
PPP	Public Private Partnership
Ppt	Percentage Points
PSU	Performance Share Unit
Q1	First Quarter
ROE	Return on Equity
RWA	Risk Weighted Asset
ST	Short Term
TMET	Telecommunications, Media, Entertainment and Technology
TSR	Total Shareholder Return
UK	United Kingdom
US	United States of America
USD	United States Dollar
Yr	Year

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Macquarie Group Limited 2013 Annual General Meeting 25 July 2013