Macquarie Group Limited - AGM Information 2018

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Macquarie Group Limited 2018 Annual General Meeting

26 July 2018

Disclaimer

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The material in this presentation has been prepared by Macquarie Group Limited ABN 94 122 169 279 (MGL) and is general background information about Macquarie’s (MGL and its subsidiaries) activities current as at the date of this presentation. This information is given in summary form and does not purport to be complete. The material contained in this presentation may include information derived from publicly available sources that have not been independently verified. Information in this presentation 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. No representation or warranty is made as to the accuracy, completeness or reliability of the information. 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 – that is, statements related to future, not past, events or other matters – including, without limitation, 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, provisions for impairments 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 or to otherwise update any forward looking statements, whether as a result of new information, future events or otherwise, after the date of this presentation. Actual results may vary in a materially positive or negative manner. Forward looking statements 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 full year ended 31 March 2018.

Certain financial information in this presentation is prepared on a different basis to the Financial Report within the Macquarie Group Annual Report (“the Financial Report”) for the year ended 31 March 2018, 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 presentation provides further detail in relation to key elements of Macquarie’s financial performance and financial position. It also provides an analysis of the funding profile of Macquarie because maintaining the structural integrity of Macquarie’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 Financial Report was not subject to independent audit or review by PricewaterhouseCoopers.

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Agenda

01 FY18 Overview

02 Overview of the Result

03 1Q19 Update

04 FY19 Outlook

05 Appendices

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FY18 Overview Peter Warne Chairman

Macquarie Group Limited  2018 Annual General Meeting  macquarie.com

FY18 Overview

Overview of the Result

1Q19 Update

FY19 Outlook

Appendices

Key management changes

The Board confirms Nicholas Moore’s decision to retire as Managing Director and CEO of Macquarie Group

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Mr Moore will retire and step down from the Boards of Macquarie Group Limited (MGL) and Macquarie Bank Limited (MBL) effective 30 Nov 18, shortly after delivering the Group’s results for 1H19
The Board has unanimously decided to appoint Shemara Wikramanayake, currently Head of MAM, in his place. Ms Wikramanayake will be appointed to the Boards of MGL and MBL

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Nicholas Moore
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The Board thanks Mr Moore for his remarkable contribution to the growth of the Group and expresses its confidence that Ms Wikramanayake has the track record and understanding of Macquarie’s businesses and culture to successfully take Macquarie forward

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Ms Wikramanayake joined Macquarie in 1987 and worked with Mr Moore in Corporate Services and then in establishing Macquarie Capital, which at that time included advisory, infrastructure funds, corporate leasing and lending and cash equities
Ms Wikramanayake has worked in nine cities in six countries, establishing and leading Macquarie’s corporate advisory offices in New Zealand, Hong Kong and Malaysia and the infrastructure funds management business
Shemara in the US and Canada
Wikramanayake
Ms Wikramanayake also serves as Chair of the Macquarie Group Foundation

Macquarie Group Limited  2018 Annual General Meeting  macquarie.com

FY18 Overview

Overview of the Result

1Q19 Update

FY19 Outlook

Appendices

Board and management changes

Board appointments

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Effective 1 November 17, Glenn Stevens was appointed to the Macquarie Group Limited and Macquarie Bank Limited Boards as an independent director
Mr Stevens worked at the highest levels of the
Glenn Stevens Reserve Bank of Australia for 20 years, most recently as Governor between 2006 and 2016. He led policy decisions through the global financial crisis, Australia’s mining boom, and an extended period of low interest rates and developed Australia’s successful inflation targeting framework for monetary policy

Board retirements

Patricia Cross will be retiring as a director
of Macquarie Group Limited and Macquarie Bank Limited after 5 years on the Board, effective after today’s AGMs

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Key management changes

In October 2017, and after 25 years of service, Stephen Allen, Macquarie’s Chief Risk Officer and Head of Risk Management Group, announced his intention to retire and step down from Macquarie’s Executive Committee on 31 December 2017

Alex Harvey

Effective 1 January 2018, Macquarie’s Chief Financial Officer and Head of Financial Management Group, Patrick Upfold succeeded Mr Allen as Chief Risk Officer and Head of Risk Management Group
Effective 1 January 2018, Alex Harvey succeeded Mr Upfold as Chief Financial Officer and Head of Financial Management Group and joined Macquarie’s Executive Committee

Patricia Cross

Macquarie Group Limited  2018 Annual General Meeting  macquarie.com

FY18 Overview

Overview of the Result

1Q19 Update

FY19 Outlook

Appendices

Performance reflects the strength of Macquarie’s global platform and the diversity of its business mix

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In FY18, Macquarie's businesses continued to grow with profit up 15% highlighting the strength of Macquarie’s global platform, the diversity of its business mix and ongoing ability to adapt to changing market conditions and client needs
Annuity-style businesses (Macquarie Asset Management, Corporate and Asset Finance and Banking and Financial Services) combined net profit contribution up 6% on the prior year
Capital markets facing businesses (Commodities and Global Markets and Macquarie Capital) combined net profit contribution up 11% on the prior year

Note: Net profit contribution is management accounting profit before unallocated corporate costs, profit share and income tax.

Macquarie Group Limited  2018 Annual General Meeting  macquarie.com

FY18 Overview

Overview of the Result

1Q19 Update

FY19 Outlook

Appendices

Financial performance

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Operating income
FY18
$Am
12,000 $A10,920m
8,000 5 %
ON FY17
4,000
FY14 FY15 FY16 FY17 FY18
EPS FY18
$A $A7.58
8.00
6.00 15 %
4.00 ON FY17
2.00
-
FY14 FY15 FY16 FY17 FY18
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Profit
FY18
$Am
3,000 $A2,557m
2,000 15 %
1,000 ON FY17
-
FY14 FY15 FY16 FY17 FY18
DPS FY18
$A $A5.25
6.00
4.00 SYD Special Dividend¹ 12 ON FY17 [%]
2.00
-
FY14 FY15 FY16 FY17 FY18
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In 2H14 eligible shareholders also benefited from the SYD distribution in Jan 14 which comprised a special dividend of $A1.16 (40% franked) and a return of capital of $A2.57 per share.

Macquarie Group Limited  2018 Annual General Meeting  macquarie.com

FY18 Overview Overview of the Result

1Q19 Update

FY19 Outlook

Appendices

FY18 dividend

FY18 ORDINARY DIVIDEND FROM $A5.25 $A4.70 (45% franked)

(45% franked) IN FY17

FY18 ANNUAL PAYOUT RATIO 70%

2H18 ORDINARY DIVIDEND FROM $A3.20 $A2.05 (45% franked) (45% franked) IN 1H18

DIVIDEND POLICY REMAINS 60-80%

ANNUAL PAYOUT RATIO

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Macquarie Group Limited  2018 Annual General Meeting  macquarie.com

FY18 Overview

Overview of the Result

1Q19 Update

FY19 Outlook

Appendices

49 years of unbroken profitability

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$Ab
3.0 Total Earnings MSCI World $A2,557m
shareholder per share Dividends per Diversified Capital MSCI World
return [1] CAGR share CAGR ASX 20 [2] Financials [2] Markets [2] Banks [2]
2.5
Since listing 5,143% 13% 13% 2nd 1st 1st 1st
5 year 256% 25% 21% 1st 1st 4th 1st
2.0
1.5
years
1.0
0.5
- 49
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$A2,557m

TSR information is presented on a total return basis, quoted in local currency. 2. Ranking refers to TSR against the respective index constituents that have been continuously listed since Macquarie’s inclusion. Source: Factset. Data to 25 Jul 18.

Macquarie Group Limited  2018 Annual General Meeting  macquarie.com

FY18 Overview

Overview of the Result

1Q19 Update

FY19 Outlook

Appendices

Risk culture and conduct

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Macquarie’s unbroken profitability is underpinned by our long-standing risk culture. This is reflected in our principles of Opportunity, Accountability and Integrity
The Board plays a key oversight role in ensuring that Macquarie has a sound risk culture and effectively manages conduct risk
A sound risk culture drives good conduct
Macquarie’s risk culture and our management of conduct risk is well entrenched across all parts of the organisation
Primary responsibility at the individual and business level
Strong independent oversight by the Risk Management Group
Effective consequence management – during the year, there were 157 matters involving conduct/policy breaches which resulted in formal consequences

Macquarie Group Limited  2018 Annual General Meeting  macquarie.com

FY18 Overview

Overview of the Result

1Q19 Update

FY19 Outlook

Appendices

Risk culture and conduct in practice

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Our risk management approach has been largely consistent since inception and we continue to monitor and enhance our risk culture and management of conduct risk

Recent risk culture and conduct specific achievements

Risk Culture Framework – which outlines the indicators used to assess the strengths and areas for development within a business or function – was refreshed

Risk culture assessment process acknowledged as market leading by an independent source

The Conduct Risk Program continued to focus on embedding conduct risk in our risk management framework and across all businesses. Recent initiatives include roll-out of Macquarie's Standards for Supervision, and launching global online training to support people managers and directors

The Integrity Office

Celebrates its 20th year as an independent point of contact for staff to safely raise concerns about misconduct, unethical behaviour or breaches of the Code of conduct
Continues to drive strong awareness of What We Stand For. Over the past 12 month period, the Integrity Office visited 30 offices and presented to over 2,000 people globally
Led initiatives to remind staff to ‘Speak Up’ and ‘Listen Up’ through Group-wide campaigns and tailored training modules

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Became a founding member of the Ethics Alliance – a new corporate community designed by The Ethics Centre to help raise the standard of business ethics in Australia and around the world

Macquarie Group Limited  2018 Annual General Meeting  macquarie.com

FY18 Overview

Overview of the Result

1Q19 Update

FY19 Outlook

Appendices

A longstanding commitment to renewable energy

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Macquarie has a substantial and longstanding commitment to the renewable energy and clean technology sectors
Macquarie supports the important work of the Task Force on Climate-related Financial Disclosure (TCFD) and will adopt the Taskforce recommendations. In the FY19 reporting cycle Macquarie will continue to evolve its disclosures to be consistent with all relevant Taskforce recommendations

$A9.5b+

$A20b+

invested or arranged in invested or arranged in green energy in FY18 green energy since 2010

250+

green energy and investment specialists

12.6GW+

diversified renewable energy assets in operation or under management

Macquarie Group Limited  2018 Annual General Meeting  macquarie.com

FY18 Overview

Overview of the Result

1Q19 Update

FY19 Outlook

Appendices

A longstanding commitment to renewable energy

Green Investment Group

Other global highlights

Macquarie issued a £2.0b loan facility, including a £500m facility to finance green projects; the first financial institution globally to issue a green loan under APLMA Green Loan Principles

MIRA acquired a 50% joint controlling stake in Shanghai Sineng Investment Co. Ltd (Sineng), a private wind development company in China

In Aug 17, a Macquarie-led consortium acquired UK Green Investment Bank for £2.3b from the UK government
Primary vehicle for principal investment in green projects in the UK and wider Europe, and more recently launched in North America and Asia
GIG developed a market-leading proprietary approach to green impact assessment and has since been applied to over 120 projects worth in excess of £14b across green infrastructure sectors

MacCap acted as a financial adviser to a consortium on the £221m senior debt refinancing of a 31% stake in the 270MW Lincs offshore wind farm in the UK

MIRA-led a consortium which acquired 47.5% of EDC, which owns and operates 1.2GW of geothermal, 150MW of wind, 132MW of hydro and 8MW of solar generation assets

A market leading track record, combined the business has: – Invested in 60% of the UK’s offshore wind generation capacity

UK Climate Investments LLP, a JV between GIG and the UK Government, made its second investment to fund the development of large-scale solar power generation assets in India

MacCap and GIG partnered with GE Capital to jointly acquire, develop and operate the 650MW Markbygden wind farm project in Sweden, the largest single-site onshore wind farm in Europe

Invested in over 30 waste and biomass projects
Financed over 1.8GW of solar projects
Installed over 2m smart meters

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Macquarie Group Limited  2018 Annual General Meeting  macquarie.com

FY18 Overview

Overview of the Result

1Q19 Update

FY19 Outlook

Appendices

Royal Commission

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The Royal Commission into Misconduct in the Banking, Superannuation and Financial Services Industry has been underway since December last year
So far the Royal Commission has held public hearings about consumer lending, financial advice, Small and Medium Enterprise (SME) lending, and the experiences of regional and remote communities; further rounds of hearings on superannuation, insurance and consideration of policy issues arising from the first six rounds have also been announced
In November, there will be a round of public hearings, which will focus on policy considerations arising from the first six rounds. A number of CEOs including Nicholas Moore will be called to give evidence
We have responded to the Commission’s inquiries and will continue to respond appropriately

Macquarie Group Limited  2018 Annual General Meeting  macquarie.com

FY18 Overview

Overview of the Result

1Q19 Update

FY19 Outlook

Appendices

Macquarie Group Foundation

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Providing support to hundreds of community organisations globally each year

FY18 $A28.3m donated by staff and Foundation

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N E W Y O R K S Y D N E Y
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60,000 1,500 hours volunteered charities supported

More than contributed $A330m since 1985

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H O N G K O N G L O N D O N
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Macquarie Group Limited  2018 Annual General Meeting  macquarie.com

FY18 Overview

Overview of the Result

1Q19 Update

FY19 Outlook

Appendices

Macquarie in the community

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Discover Macquarie www.macquarie.com/discover

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Overview of the FY18 Result Nicholas Moore Managing Director and Chief Executive Officer

Macquarie Group Limited  2018 Annual General Meeting  macquarie.com

FY18 Overview

Overview of the Result

1Q19 Update

FY19 Outlook

Appendices

FY18 result: $A2,557m up 15% on FY17

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Net operating income Operating profit before income tax Profit attributable to MGL shareholders Annualised return on equity (%) Basic earnings per share Dividend per ordinary share				FY18 v FY17 5% 12% 15% 11% 15% 12%
	FY17 $Am FY18 $Am
	10,364 10,920
	3,104 3,464
	2,217 2,557
	15.2 16.8
	$A6.58 $A7.58
	$A4.70 $A5.25

Macquarie Group Limited  2018 Annual General Meeting  macquarie.com

FY18 Overview

Overview of the Result

1Q19 Update

FY19 Outlook

Appendices

Where we generate our income International income 67% of total income[[1]] Total staff 14,469; International staff 54% of total

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Asia
International income 67% of total income [[1]]
Staff
Total staff 14,469; International staff 54% of total 11% 3,428
of total income Income
EMEA $A1,229m
Staff
Assets under management
1,766
29% $A51.7b
of total income Income employing 40,000+ people [3]
Americas $A3,076m ASIA Kuala Singapore
Bangkok Lumpur Taipei
Staff Assets under management Australia [2] BeijingGurugramHong Kong ManilaMumbaiSeoul Tokyo
27% 2,598 Income $A92.0b Staff Jakarta Shanghai
of total income employing 40,000+ people [3]
$A2,822m EUROPE Dublin MIDDLE EAST Abu Dhabi of total income 33% 6,677 Income
Edinburgh Dubai
Frankfurt
Assets under management Geneva SOUTH AFRICA $A3,517m
London Cape Town
$A255.1b employing 29,000+ people [3] LuxembourgMadridMunich Johannesburg Assets under management
ParisReading $A97.9b
CANADA Calgary USA Austin MinneapolisNashville ViennaZurich employing 4,500+ people [3]
Montreal Boca Raton New York
Toronto Boston Philadelphia AUSTRALIA Newcastle
Vancouver Chicago San Diego Adelaide Parramatta
Denver San Francisco Brisbane Perth
LATIN AMERICA Houston San Jose Canberra Sydney
Mexico City Jacksonville Gold Coast
Sao Paulo Los Angeles Manly NEW ZEALAND
Melbourne Auckland
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As at 31 Mar 18. 1. Net operating income excluding earnings on capital and other corporate items. 2. Includes New Zealand. 3. Includes staff employed at MIRA-managed fund assets and assets MacCap has invested in.

Macquarie Group Limited  2018 Annual General Meeting  macquarie.com

FY18 Overview

Overview of the Result

1Q19 Update

FY19 Outlook

Appendices

ABOUT MACQUARIE Diverse business mix

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Annuity-style businesses (~70%)

Macquarie Asset Management (MAM)

Top 50 global asset manager with $A495.1b[1] of assets under management

Provides clients with access to a diverse range of capabilities and products, including infrastructure, real assets, equities, fixed income, liquid alternatives and multi-asset investment management solutions

Corporate and Asset Finance (CAF)

Global provider of specialist finance and asset management solutions, with a $A34.5b[1] asset and loan portfolio

Asset Finance has global expertise in aircraft, vehicles, technology, healthcare, manufacturing, industrial, energy, rail and mining equipment

Principal Finance provides flexible primary financing solutions and engages in secondary market investing, across the capital structure. It operates globally in both corporate and real estate sectors

Banking and Financial Services (BFS)

Macquarie’s retail banking and financial services business with a $A40.6b[1] Australian loan portfolio, funds on platform[2] of $A82.5b[1] and total BFS deposits[3] of $A45.7b[1]

Provides a diverse range of personal banking, wealth management and business banking products and services to retail clients, advisers, brokers and business clients

Capital markets facing businesses (~30%)

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Commodities and Global Markets (CGM)
Integrated, end-to-end offering across global markets
MAM including equities, fixed income, foreign exchange
33% and commodities
Provides clients with risk and capital solutions across
physical and financial markets
CGM
Diverse platform covering more than 25 market segments,
18%
with more than 160 products
Net profit Growing presence in commodities (natural gas,
LNG, NGLs, power, oil, coal, base metals, iron ore,
contribution
sugar and freight)
Global institutional securities house with strong
MacCap Asia-Pacific foundations covering sales, research,
CAF 14% ECM, execution and derivatives and trading activities
24%
BFS Macquarie Capital (MacCap)
11%
Global capability across infrastructure, energy, real estate,
telecommunications, media, technology, consumer,
gaming and leisure, business services, resources,
industrials and financial institutions in: M&A advisory;
equity and debt capital markets; and balance
sheet positions
Invests Macquarie’s balance sheet to develop and create
assets, platforms and businesses in the infrastructure,
energy and real estate sectors, and partnering primarily
with financial sponsor clients, to provide capital solutions,
particularly in the technology sector
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Net profit contribution is management accounting profit before unallocated corporate costs, profit share and income tax. Pie chart is based on FY18 net profit contribution from operating groups. 1. As at 31 Mar 18. 2. Funds on platform includes Macquarie Wrap and Vision. 3. BFS deposits exclude corporate/wholesale deposits.

Macquarie Group Limited  2018 Annual General Meeting  macquarie.com

1Q19 Update

FY19 Outlook Appendices

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FY18 Overview Overview of the Result
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Macquarie Asset Management

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Net profit $A1.7b 10%

1,608 23 130+ people countries infrastructure and real assets

Net profit contribution

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33%
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$A495b 3% Assets under management

MIRA MIM MSIS Grew equity under $A333.5b Funded projects management to in UK, US, Hungary in assets under and Australia $A86.2b 12% management AUM Strong base fees; $A6.4b $A18.8b $A566m in new institutional in performance fees mandates

Strong base fees; $A566m in performance fees

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in performance fees mandates Largest
specialist infrastructure
Invested
debt manager
70%
$A11.1b
of key strategies
in 14 countries
outperform over 1 year [1]
Signed GLL Real Estate
Signed ValueInvest
Partners
TOP 10 5 TOP 10
World’s Largest Infrastructure Global Insurance #1 Capital raised by Infrastructure direct #1 Top 50 Infrastructure Barron’s Fund Families
Asset Manager [2] Manager [3] investment programmes [4] Investment Manager [6] 10-year relative performance [7]
FY18 AWARDS
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Note: References relate to the full year ended 31 Mar 18. All references to net profit contribution is management accounting profit before unallocated corporate costs, profit share and income tax. Pie chart is based on FY18 net profit contribution from operating groups. 1. As of 31 Mar 18, 70% of MIM’s key global strategies were outperforming their respective benchmarks on a 1-year basis. 2. Towers Watson Global Alternatives Survey 2017 (published July 2017), measured by assets under management. 3. Eager, Davis & Holmes, Global Non-Affiliated GA Assets (2017). 4. Rankings based on methodology created by Infrastructure Investor (II50), and represents infrastructure direct-investment capital formed based on a rolling 5 year period to measurement date (2017). 5. No.1 for Macquarie MS Bonds Global Corporates in the category Corporate Bonds, International Investment Grade, over 1 year (2018). 6. IPE Real Assets (July/August 2017), measured by infrastructure assets under management. 7. Delaware Funds® by Macquarie family of funds ranked 41 out of 59 for the one-year; 23 out of 55 for the five-year; and 7 out of 50 for the 10-year (2017). For more information and disclosures about these awards, visit: https://www.macquarieim.com/mimdisclosures.

2222

Macquarie Group Limited  2018 Annual General Meeting  macquarie.com

FY18 Overview

Overview of the Result

1Q19 Update

FY19 Outlook

Appendices

Macquarie Asset Management

Making a contribution to our communities

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Goethals Bridge Created 2,000+ jobs and injected ~$US872m into local economy

Green Investment Group Global investment in green energy targeting £3b additional investment by 2020; pioneering the world's transition to a lowcarbon economy

Thames Water

GBP1b invested each year[1] to upgrade London’s water supply and reduce leakage by 22% ; serving over 9m water and 15m wastewater customers

Havebury housing Arranged GBP75m of financing for the development of over 1,200 new social and affordable houses

Copenhagen Airport

Invested >DKK10b across terminal expansion and upgrades, now the largest Northern Europe airport expanding the connectivity of the region

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China water
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Funded water treatment plant serving ~ 5m Shenyang residents each year

Offshore wind farm

Arranged GBP500m+ of financing for the acquisition and construction of the Walney Extension offshore wind farm

Geothermal power

Geothermal power station providing 1.4GW of clean and baseload power

India toll roads Invested ~$US500m achieving 26m safe man hours

Precision farming Hobart Airport Using technology Invested in upgrade, to improve crop yields expected to contribute and reduce chemical $A1.6b to the Tasmanian usage on farmland economy by 2035

Note: References relate to the full year ended 31 Mar 18. All references to MIRA assets are to assets in which MIRA manages various percentage investments on behalf of funds/clients. 1. Between 2006-2017.

Macquarie Group Limited  2018 Annual General Meeting  macquarie.com

FY18 Overview

Overview of the Result

1Q19 Update

FY19 Outlook

Appendices

Corporate and Asset Finance

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Net profit
1%
$A1.2b
1,312 15
people countries
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Net profit contribution

$A34.5b 5% Assets and loan portfolio

24%

20yrs+ Leading global aircraft lessor of Asset Finance 196 owned planes expertise

$A37b+ invested across

570+

Principal Finance deals in 9 years

Leading Australian vehicle financier 600,000+ cars

9m

smart meters in the UK Investments in by 2020 UK rooftop solar UK care homes Multi-family rental properties

1,000,000 smartphones leased to customers worldwide

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Macquarie Group Limited  2018 Annual General Meeting  macquarie.com

FY18 Overview

Overview of the Result

1Q19 Update

FY19 Outlook

Appendices

Corporate and Asset Finance

Making a contribution to our communities

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Smart meters

Installed in ~6m UK homes and commercial premises by 2020 helping households manage electricity consumption

Sustainable and affordable long-term energy solutions

Growth in the provision of finance for $A100m+ of commercial on roof solar and distributed energy for SMEs in Australia

Rooftop solar

>13,000 rooftop solar systems installed in UK homes, reducing household energy bills by ~£3m[1]

MotoMe

Developed car buying platform to reduce the 12.3 hours Australians spend researching car purchases online[2]

Innovating the supply of smartphones

Leased 1,000,000 smartphones globally to improve affordability of upgraded devices and reduce e-waste

Note: References relate to the full year ended 31 Mar 18. 1. OFGEM. 33GWh x 50% (consumption for residential systems) x 0.1574/kwh (average UK domestic electricity price) 2. ACA Research. Mean time.

Macquarie Group Limited  2018 Annual General Meeting  macquarie.com

FY18 Overview Overview of the Result

1Q19 Update

FY19 Outlook Appendices

Banking and Financial Services

Net profit

$A560m 9%

$A32.7b

$A45.7b $A82.5b total BFS deposits funds on platform

mortgage portfolio

14% 14%

Net profit contribution

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11%
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More than 1million Australian clients

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Best

Canstar 5 star rating Credit card Transaction account

Rebuilt our tech stack and are the first to offer lending and retail deposits on one core banking system

Digital Banking Offering[2]

Australia’s 1[st ]

20m+

open banking platform gives customers control over their data

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transactions processed through our DEFT automated rent payment system

1 in 3

2[nd] largest WRAP platform in Australia[1] , with 7000 financial advisers

SMSFs

use Macquarie’s Cash Management Account[3]

Most

Innovative Card Product[2]

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Macquarie Group Limited  2018 Annual General Meeting  macquarie.com

FY18 Overview

Overview of the Result

1Q19 Update

FY19 Outlook

Appendices

Banking and Financial Services

Making a contribution to our communities

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30+ years creating innovation and competition

Giving customers choice

Empowering customers to have choice, control and security over their own data through Australia’s first open banking platform

Innovating property buying

Created first-of-its-kind platform which enables buyers to pay home deposits in as little as 2 minutes online

2010s

Digitally disrupting retail banking

1990s

Mortgage securitisation – lower rates for loans

1980s

Australia’s 1[st] Cash Management Trust – higher rates for cash

Award-winning

Digital banking for customers[1]

Disrupting retail banking

Delivered technology-led innovation for banking customers using the same technology as Netflix and Facebook

Client experience

Helping Australians with their retirement

Helping over 110,000 Australians save for their retirement with over $A25b in superannuation on our platform[2]

Delivering exceptional client experience by applying human centred design principles to understand clients and partners

Note: References relate to the full year ended 31 Mar 18. 1. 2017 Australian Retail Banking Awards. 2. Based on Macquarie FUA superannuation data at 31 Mar 2018.

Macquarie Group Limited  2018 Annual General Meeting  macquarie.com

FY18 Overview Overview of the Result 1Q19 Update FY19 Outlook Appendices

Commodities and Global Markets

Net profit

$A910m 6%

160+ 25+ products traded market segments

Net profit contribution

2018 Energy Derivatives House of the Year[1]

18%

No.1

for IPOs in Australia[2]

No.1

Futures broker Australia[3]

No.2

US physical gas marketer in North America[4]

20yrs+ in agricultural markets

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30yrs+

Differentiated insights on

in metals, equities, futures and FX markets

2,000+

stocks globally

24-hour

market coverage

Enhanced capability, adding

110+

Integrated endenergy specialists to-end offering across global markets, Increased oil including equities, fixed income, foreign logistics capability Latin America, China, exchange and commodities Africa, Middle East

Macquarie Group Limited  2018 Annual General Meeting  macquarie.com

FY18 Overview

Overview of the Result

Appendices

1Q19 Update

FY19 Outlook

Commodities and Global Markets

Making a contribution to our communities

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Powering the UK using biomass

World’s largest biomass plant reducing carbon emissions and creating employment opportunities in NE England

Visible Alpha

Cargill

Acquisitions added 110+ energy specialists, expanding coverage of global Petroleum, and North American Gas and Power, making power and gas markets more efficient for the community

Helping fund development of innovative solutions to research valuation challenges for investors including pension and superannuation funds

Connecting global investors to China tech

Supplying capital and liquidity to China’s entrepreneurs

Note: References relate to the full year ended 31 Mar 18.

Macquarie Group Limited  2018 Annual General Meeting  macquarie.com

FY18 Overview Overview of the Result

1Q19 Update

FY19 Outlook Appendices

Macquarie Capital

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Net profit

$A700m 45%

Net profit contribution

$A352b Macquarie Group completed deals [1]

14%

Global leader in green energy

No.1

global infrastructure financial adviser [2]

No.1

Renewables financial adviser [3]

No.1

30+ green energy projects under development

completed M&A deals, IPOs in Australia [4]

No.2

US Tech LBO bookrunner [5]

$A2.6b

invested in green energy Financial adviser in FY18 of the year (Gold) [6]

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Macquarie Group Limited  2018 Annual General Meeting  macquarie.com

FY18 Overview

Overview of the Result

1Q19 Update

FY19 Outlook

Appendices

Macquarie Capital

Making a contribution to our communities

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Markbygden Ett

I-70

Keeping Colorado connected through development of essential infrastructure

Green energy

$A2.6b invested in green energy in FY18; with over 30 projects under development or construction

Norte III

Funded gas plant reconstruction to power 500,000+ homes in Mexico

Europe’s largest onshore wind farm providing 650MW of renewable energy to the Nordic region

Cleaner future for Japan

Provided a solar and wind pipeline of 1GW+ and enough electricity to power ~475,000 homes

Formosa 1

Providing clean energy to 50,000+ homes in Taiwan

Quadrant Energy

PEXA

Investment and expertise for Western Australia’s oil and gas sector

Modernising Australia’s property transactions, helping to make the market more efficient for Australians

Note: References relate to the full year ended 31 Mar 18.

Macquarie Group Limited  2018 Annual General Meeting  macquarie.com

FY18 Overview

Overview of the Result

1Q19 Update

FY19 Outlook

Appendices

Business backed by strong funding and capital

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MGL funded balance sheet APRA Basel III surplus capital[6] Credit ratings 31 March 2018 31 March 2018 $Ab $A4.2b 27 years 22 years 26 years ‘A’ RATED

‘Short-term’ funding includes short-term wholesale issued paper and other debt maturing in the next 12 months. 2. ‘Term’ funding sources includes debt maturing beyond 12 months plus equity and hybrids. 3. ‘Cash, liquids and self securitised assets’ includes self securitisation of repo eligible Australian mortgages originated by Macquarie. 4. ‘Trading & short-term’ funded assets includes net trading assets and loan assets (incl. op lease) maturing in the next 12 months. 5. ‘Term’ funded assets includes debt investment securities, equity investments, PPE and loan assets (incl. op lease) maturing beyond 12 months. 6. Calculated at 8.5% RWA including the capital conservation buffer (CCB), per APRA ADI Prudential Standard 110.

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1Q19 Update Nicholas Moore Managing Director and Chief Executive Officer

Macquarie Group Limited  2018 Annual General Meeting  macquarie.com

FY18 Overview

Overview of the Result

1Q19 Update

FY19 Outlook Appendices

1Q19 Macquarie update

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• Operating groups performing well, in line with expectations

1Q19 operating group contribution[1] up on pcp and down on a strong prior quarter

1Q19 contribution[1] vs 1Q18

Continued to perform well:

Annuity-style businesses[2]
Continued strong base and performance fees in MAM
CAF Principal Finance down on pcp; mainly due to the timing of transactions and a reduction in the size of the portfolio. CAF Asset Finance broadly in line with pcp
Continued growth in mortgages, business banking and platforms in BFS. Deposits broadly in line with pcp

Experienced strong trading conditions across most markets:

Capital markets facing businesses[2]

Stronger activity in CGM, particularly in commodity markets and fixed income products
MacCap balance sheet positions performing in line with expectations; solid realisations during the quarter; fee revenue from DCM down on a strong pcp

• No significant one-off items

Represents management accounting profit before unallocated corporate costs, profit share, income tax and period end reviews. 2. Annuity-style businesses consists of Macquarie Asset Management, Corporate and Asset Finance, and Banking and Financial Services. Capital markets facing businesses consists of Commodities and Global Markets and Macquarie Capital.

Macquarie Group Limited  2018 Annual General Meeting  macquarie.com

FY18 Overview

Overview of the Result

1Q19 Update

FY19 Outlook

Appendices

Annuity-style businesses 1Q19 Update

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	FY18 contribution1	Activity during the quarter
Macquarie Asset Management	33%	• AUM of $A534.1b, up 8% on Mar 18, largely due to reaching financial close on previously announced GLL Real Estate Partners and ValueInvest transactions, infrastructure asset acquisitions, and favourable market and FX movements, partially offset by infrastructure asset realisations - MIRA EUM of $A102.1b, up 18% on Mar 18 • Performance fees from several funds including Atlas Arteria (formerly Macquarie Atlas Roads) • MIRA raised equity of $A5.6b primarily from its Macquarie SuperCore Infrastructure Fund and MEIF5 co-investment, and invested equity of $A4.8b • MIM awarded $A2.9b in new institutional mandates and contributions funded across 36 strategies from clients in 11 countries • MSIS awarded over $A1b of additional infrastructure debt mandates
Corporate and Asset Finance	24%	• Asset and Principal Finance portfolio of $A34.1b, broadly in line with Mar 18 • Asset Finance originations in line with expectations • Notable Principal Finance transactions included funding the first installation in the 30MWp onsite PPA solar PV roll out for the UK’s largest licensed water and sewerage undertaker, and providing financing to the UK’s largest provider of construction waste management services
Banking and Financial Services	11%	• Australian mortgage portfolio of $A34.3b, up 5% on Mar 18 • Funds on platform2 of $A86.8b, up 5% on Mar 18 • Business banking loan portfolio of $A7.5b, up 3% on Mar 18 • Total BFS deposits3 of $A46.9b, up 3% on Mar 18 • Awarded Best Cash and Term Deposit Provider at the 2018 SMSF Awards and named as a winner in the 2018 Mozo Experts Choice Awards in the Travel Money/International Money Transfer category

Based on FY18 net profit contribution from operating groups. Net profit contribution is management accounting profit before unallocated corporate costs, profit share and income tax. 2. Funds on platform includes Macquarie Wrap and Vision. 3. BFS deposits excludes corporate/wholesale deposits.

Macquarie Group Limited  2018 Annual General Meeting  macquarie.com

FY18 Overview

Overview of the Result

1Q19 Update

FY19 Outlook

Appendices

Capital markets facing businesses 1Q19 Update

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	FY18 contribution1	Activity during the quarter
Commodities and Global Markets	18%	• Increased client hedging and trading opportunities across the commodities platform, particularly in North American Gas • Continued strong customer activity in foreign exchange and futures • Strong underwriting income from Cash Equities, particularly in Asia • Maintained ranking as No. 2 US physical gas marketer in North America2
Macquarie Capital	14%	• 115 deals completed to the value of $A160b, up on pcp (by value) and up on the prior period (by value and volume)3 • Fee revenue from ECM and M&A broadly in line with pcp. Fee revenue from DCM down on a strong pcp • Balance sheet positions performing in line with expectations with continued realisations during the quarter • Ongoing expansion of Green Investment Group (GIG) – completed official launch of GIG in North America and Asia • No.1 for completed M&A deals4 and ECM deals5 in ANZ • No.1 for global renewables financial advisory6 and global financial advisory in Infrastructure Finance7

Based on FY18 net profit contribution from operating groups. Net profit contribution is management accounting profit before unallocated corporate costs, profit share and income tax. 2. Platts 1Q CY18 3. Source: Dealogic and IJ Global for Macquarie Group completed M&A, balance sheet positions, ECM and DCM transactions, converted at 30 Jun FX rate. Deal values reflect the full transaction value and not attributed value. 4. Dealogic, Apr – Jun 18 (by value and volume) 5. Dealogic, Apr – Jun 18 (by value) 6. Inframation, 1H CY18 (by deal count) 7. IJ Global, 1H CY18 (by deal count).

Macquarie Group Limited  2018 Annual General Meeting  macquarie.com

FY18 Overview

Overview of the Result

1Q19 Update

FY19 Outlook

Appendices

Funded balance sheet remains strong

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Term liabilities cover term assets

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31 Mar 17 31 Mar 18 30 Jun 18
$Ab $Ab $Ab
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These charts represent Macquarie’s funded balance sheets at the respective dates noted above. 1. ‘Other debt maturing in the next 12 months’ includes Structured Notes, Secured Funding, Bonds, Other Loans, Loan Capital maturing within the next 12 months and Net Trade Creditors. 2. ‘Debt maturing beyond 12 months’ includes Loan Capital not maturing within next 12 months. 3. Non-controlling interests have been netted down in ‘Equity and hybrids’ and ‘Equity Investments and PPE’. 4. ‘Cash, liquids and self securitised assets’ includes self securitisation of RBA repo eligible Australian mortgages originated by Macquarie. 5. ‘Loan Assets (incl. op lease) < 1 year’ includes Net Trade Debtors. 6. ‘Loan Assets (incl. op lease) > 1 year’ includes Debt Investment Securities. 7. ‘Equity Investments and PPE’ includes Macquarie’s co-investments in Macquarie-managed funds and equity investments.

Macquarie Group Limited  2018 Annual General Meeting  macquarie.com

FY18 Overview

Overview of the Result

1Q19 Update

FY19 Outlook Appendices

Basel III capital position

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APRA Basel III Group capital at Jun 18 of $A18.8b, Group capital surplus of $A3.4b[1,2]

Group regulatory surplus: Basel III (Jun 18)

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$Ab Group regulatory surplus: Basel III (Jun 18)
7.0
6.0
(1.5) 0.4
5.0
1.0
(0.6) (2.2)
4.0
6.3
3.0
Based on 8.5% (minimum Tier 1 ratio + CCB) 5.6
2.0
3.4
1.0
-
Harmonised Basel III FY18 Final Dividend MCN redemption MCN3 issuance Other3 Harmonised Basel III APRA Basel III APRA Basel III
at Mar 18 and MEREP at Jun 18 'super equivalence' 4 at Jun 18
1. Calculated at 8.5% RWA including the capital conservation buffer (CCB) per APRA ADI Prudential Standard 110. The APRA Basel III Group capital surplus is $A4.8b calculated at 7% RWA, per the internal minimum Tier 1 ratio of the Bank Group. 2. Based on materiality, the
Group surplus does not include the countercyclical capital buffer (CCyB) of ~6bps. The individual CCyB varies by jurisdiction and Macquarie’s CCyB is calculated as the weighted average of Macquarie’s Bank Group exposures in different jurisdictions. In Jun 18 the CCyB in the
United Kingdom increased from 0.0% to 0.5% increasing Macquarie's CCyB to ~6bps. 3. Includes current quarter P&L net of business growth, the net impact of hedging employed to reduce the sensitivity of the Group’s capital position to FX translation movements and other
movements in capital supply and requirements. 4. APRA Basel III ‘super-equivalence’ includes the impact of changes in capital requirements in areas where APRA differs from the BCBS Basel III framework and includes full CET1 deductions for equity investments ($A0.6b);
differences in mortgages treatment ($A0.7b); capitalised expenses ($A0.5b); investment into deconsolidated subsidiaries ($A0.2b); DTAs and other impacts ($A0.2b).
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Macquarie Group Limited  2018 Annual General Meeting  macquarie.com

FY18 Overview

Overview of the Result

1Q19 Update

FY19 Outlook

Appendices

Strong regulatory ratios

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Bank Group (Jun 18)
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17.5% 7.5% 190.0% 115.0%
6.4%
112%
14.0% 6.0% 160.0% 110.0%
12.8%
155%
5.6%
10.5% 4.5% 130.0% 105.0%
10.3%
7.0% 3.0% 100.0% 100.0%
3.5% 1.5% 70.0% 95.0%
- - 40.0% 90.0%
CET1 ratio Leverage ratio LCR1 NSFR
Bank Group (Harmonised )2 Bank Group (APRA) APRA Basel III minimum [3]
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Average LCR for Jun 18 quarter is based on an average of daily observations. 2. ‘Harmonised’ Basel III estimates are calculated in accordance with the BCBS Basel III framework. 3. Includes the capital conservation buffer (CCB) in the minimum CET1 ratio requirement. The countercyclical capital buffer (CCyB) is immaterial at 6bps and has not been included. In Feb 18 APRA proposed a minimum leverage ratio requirement for IRB ADIs of 4% effective from 1 Jul 19

Macquarie Group Limited  2018 Annual General Meeting  macquarie.com

FY18 Overview

Overview of the Result

1Q19 Update

FY19 Outlook

Appendices

Regulatory and tax update

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• Regulatory capital[1]

In Jul 17 APRA provided guidance on the level of CET1 capital ratios for Australian banks to be considered ‘unquestionably strong’, indicating an average increase of 150bps across the industry would be required[2 ]
In Feb 18, APRA released draft ‘unquestionably strong’ proposals reinforcing their previous guidance. As the final form of the framework remains uncertain there may be a broader range of potential outcomes for individual banks[3]
Based on existing guidance, Macquarie’s surplus capital position remains sufficient to accommodate likely additional requirements
In addition, APRA released a discussion paper on their proposed implementation of the leverage ratio with a minimum requirement of 4% from Jul 19

• Proposed changes to APRA’s related entities framework[4]

In Jul 18 APRA released a discussion paper proposing changes to the related entities framework (APS 222), with implementation from 1 Jan 20 plus any transition granted by APRA
The impact of the final framework remains uncertain. At this stage, Macquarie does not anticipate the proposed changes will have a material impact on results, but may require some restructuring of business activities and legal entities within the Macquarie Group

• US tax reform

In the medium term, the impact to Macquarie will be determined by the proportional contribution of earnings from the US in relation to the Group’s overall result
- Based on past performance, Macquarie estimates a reduction of approximately 3-4% in the Group’s historical effective tax rate
Macquarie notes recent press articles, in which Macquarie Bank Limited and a number of other financial institutions are mentioned in relation to a large-scale review by German authorities concerning dividend trading between 2006 and 2012. Macquarie has previously provided for these matters, and continues to assist the German authorities with their investigations
The Basel Capital Framework applies to the Bank Group only. 2. APRA’s information paper published Jul 17: ‘Strengthening banking system resilience – establishing unquestionably strong capital ratios’. 3. ‘APRA begins consultation with ADIs on revisions to capital framework’; 14 Feb 18. 4. ‘APRA proposes updates to related parties framework for ADIs’; 2 Jul 18.

Macquarie Group Limited  2018 Annual General Meeting  macquarie.com

FY18 Overview

Overview of the Result

1Q19 Update

FY19 Outlook

Appendices

Capital management update

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• Share buyback

No buying occurred during 1Q19. Macquarie’s share buyback program remains in place, with any share purchases subject to a number of factors including the Group’s capital surplus position, market conditions and opportunities to deploy capital by the businesses

• Macquarie Group Capital Notes 3 (MCN3)

On 7 Jun 18, Macquarie announced that it had issued 10,000,000 MCN3 at an issue price of $A100 each, raising $A1b. The MCN3 offer facilitated the redemption of $A600m Macquarie Group Capital Notes (MCN) issued by Macquarie

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FY19 Outlook Nicholas Moore Managing Director and Chief Executive Officer

Macquarie Group Limited  2018 Annual General Meeting  macquarie.com

FY18 Overview

Overview of the Result

1Q19 Update

FY19 Outlook

Appendices

Factors impacting short-term outlook

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

Annuity-style businesses
Macquarie Asset Management (MAM)
MAM
FY18: $A1.7b up 10% on FY17
Base fees expected to be up, benefiting from
recent acquisitions
Performance fees and investment-related income CGM
(net of impairments) expected to be down
Net profit
contribution
Corporate and Asset Finance (CAF)
FY18: $A1.2b up 1% on FY17 CAF MacCap
Leasing book broadly in line
Reduced loan volumes in Principal Finance
BFS
Timing and level of early prepayments and realisations in
Principal Finance
Banking and Financial Services (BFS)
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Capital markets facing businesses

Commodities and Global Markets (CGM)

FY18: $A0.9b down 6% on FY17

Strong customer base expected to drive consistent flow across Commodities, Fixed Income and Futures Improved result in equities

Reduced impact from timing of revenue recognition driven by accounting volatility

Macquarie Capital (MacCap)

FY18: $A0.7b up 45% on FY17

Assume market conditions broadly consistent with 2H18 Solid pipeline of realisations expected

FY18: $A0.6b up 9% on FY17

Higher loan portfolio, deposit and platform volumes NIM pressure due to higher costs

Corporate

Compensation ratio to be consistent with historical levels Based on present mix of income, along with the favourable impacts of US tax reform, the FY19 effective tax rate is expected to be down on FY18

Net profit contribution is management accounting profit before unallocated corporate costs, profit share and income tax. Pie chart is based on FY18 net profit contribution from operating groups.

Macquarie Group Limited  2018 Annual General Meeting  macquarie.com

FY18 Overview

Overview of the Result

1Q19 Update

FY19 Outlook

Appendices

Short-term outlook

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The Group’s result for FY19 is currently expected to be broadly in line with FY18
Our short-term outlook remains subject to:
Market conditions
The impact of foreign exchange
Potential regulatory changes and tax uncertainties
Geographic composition of income

Macquarie Group Limited  2018 Annual General Meeting  macquarie.com

FY18 Overview

Overview of the Result

1Q19 Update

FY19 Outlook

Appendices

Medium-term

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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 acquisitions
- Macquarie Asset Management, Corporate and Asset Finance and Banking and Financial Services
Two capital markets facing businesses well positioned to benefit from improvements in market conditions with strong platforms and franchise positions
- Commodities and Global Markets and Macquarie Capital
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

Macquarie Group Limited  2018 Annual General Meeting  macquarie.com

FY18 Overview

Overview of the Result

1Q19 Update

FY19 Outlook

Appendices

Approximate business Basel III Capital & ROE

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31 Mar 18

Operating Group	APRA Basel III Capital 1 @ 8.5% ($Ab)	Approx. FY18 Return on Ordinary Equity2	Approx. 12-Year Average Return on Ordinary Equity 2
Annuity-style businesses	8.9
Macquarie Asset Management	2.2	23%	20%3
Corporate and Asset Finance	4.2
Banking and Financial Services	2.5
Capital markets facing businesses	5.9
Commodities and Global Markets	3.3	15%	15% - 20%
Macquarie Capital	2.6
Corporate	0.1
Total regulatory capital requirement @ 8.5%	14.9
Group surplus	4.2
Total APRA Basel III capital supply	19.14

Business Group capital allocations and are based on 31 Dec 17 allocations adjusted for forecast material movements over the Mar 18 quarter. 2. NPAT used in the calculation of approx. annualised ROE is based on Operating Group’s forecast FY18 net profit contribution adjusted for indicative allocations of profit share, tax and other corporate expenses. Equity is based on the quarterly average equity usage from FY17 to FY18 inclusive. FY18 equity is based on 31 Dec 17 allocations adjusted for forecast material movements over the Mar 18 quarter. 12-year average covers FY07 to FY18, inclusively. 3. CAF returns prior to FY11 excluded from 12-year average as not meaningful given the significant increase in scale of CAF’s platform over this period. 4. Comprising of $A17.4b of ordinary equity and $A2.7b of hybrids.

Macquarie Group Limited  2018 Annual General Meeting  macquarie.com

FY18 Overview

Overview of the Result

1Q19 Update

FY19 Outlook

Appendices

Medium-term

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

Annuity-style businesses
Macquarie Asset Management (MAM)
Annuity-style business that is diversified across regions,
products, asset classes and investor types MAM
Diversification of capabilities allows for the business to be
well placed to grow assets under management in different
market conditions CGM
Well positioned for organic growth with several strongly
performing products and an efficient operating platform
Corporate and Asset Finance (CAF)
MacCap
Leverage deep industry expertise to maximise growth CAF
potential in asset and loan portfolio
Positioned for further asset acquisitions and realisations,
BFS
subject to market conditions
Availability of funding from asset securitisation throughout
the cycle
Banking and Financial Services (BFS)
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Capital markets facing businesses

Commodities and Global Markets (CGM)

Opportunities to grow commodities business, both organically and through acquisition

Development of institutional coverage for specialised credit, rates and foreign exchange products Increase financing activities Growing the client base across all regions

Leveraging a strong market position in Asia-Pacific through investment in the equities platform and further integration of the business across CGM

Macquarie Capital (MacCap)

Positioned to benefit from any improvement in M&A and capital markets activity

Continues to tailor the business offering to current opportunities, market conditions and strengths in each region and sector

Strong growth opportunities through intermediary and direct retail client distribution, white labelling, platforms and client service

Opportunities to increase financial services engagement with existing business banking clients and extend into adjacent segments

Modernising technology to improve client experience and support growth

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Appendices

Macquarie Group Limited  2018 Annual General Meeting  macquarie.com

FY18 Overview

Overview of the Result

1Q19 Update

FY19 Outlook

Appendices

Glossary

$A / AUD	Australian Dollar
$US / USD	United States Dollar
£ / GBP	Pound Sterling
€	Euro
DKK	Danish Krone
1H18	Half-Year ended 30 September 2017
2H18	Half-Year ended 31 March 2018
1H19	Half-Year ended 30 September 2018
ABN	Australian Business Number
ADI	Authorised Deposit-TakingInstitution
ANZ	Australia and New Zealand
Approx.	Approximately
APRA	Australian Prudential Regulation Authority
ASX	Australian Stock Exchange
AUM	Assets under Management
BCBS	Basel Committee on BankingSupervision
BFS	Bankingand Financial Services
CAF	Corporate and Asset Finance
CAGR	Compound Annual Growth Rate

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CCB	Capital Conservation Buffer
CET1	Common EquityTier 1
CEO	Chief Executive Officer
CGM	Commodities and Global Markets
CMA	Cash Management Account
CY17	Calendar Year ended 31 December 2017
CY18	Calendar Year ending31 December 2018
DCM	Debt Capital Markets
DPS	Dividends Per Share
DTA	Deferred Tax Asset
ECM	EquityCapital Markets
EMEA	Europe,the Middle East and Africa
EPS	Earnings Per Share
EUM	EquityUnder Management
FX	Foreign Exchange
FY14	Full Year ended 31 March 2014
FY15	Full Year ended 31 March 2015
FY16	Full Year ended 31 March 2016
FY17	Full Year ended 31 March 2017

Macquarie Group Limited  2018 Annual General Meeting  macquarie.com

FY18 Overview

Overview of the Result

1Q19 Update

FY19 Outlook

Appendices

Glossary

FY18	Full Year ended 31 March 2018
FY19	Full Year ending31 March 2019
GIG	Green Investment Group
GW	Giga Watt
IPO	Initial Public Offering
IRB	Internal Ratings-Based
LBO	Leveraged Buyout
LCR	LiquidityCoverage Ratio
LNG	Liquefied Natural Gas
M&A	Mergers and Acquisitions
MacCap	Macquarie Capital
MAM	Macquarie Asset Management
MEIF5	Macquarie European Infrastructure Fund 5
MEREP	Macquarie GroupEmployee Retained EquityPlan
MGL / MQG	Macquarie GroupLimited
MIDIS	Macquarie Infrastructure Debt Investment Solutions
MIM	Macquarie Investment Management
MIRA	Macquarie Infrastructure and Real Assets
MSIS	Macquarie Specialised Investment Solutions

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MW	Mega Watt
MWp	Mega Wattpeak
Mths	Months
NGLs	Naturalgas liquids
No.	Number
NPAT	Net Profit After Tax
P&L	Profit and Loss Statement
PPE	Property,Plant and Equipment
PPP	Public Private Partnership
RBA	Reserve Bank of Australia
ROE	Return on Equity
RWA	Risk Weighted Assets
SME	Small and Medium Enterprise
SMSF	Self Managed Super Fund
TCFD	Task Force on Climate-related Financial Disclosure
UK	United Kingdom
US	United States of America
Yrs	Years

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Macquarie Group Limited 2018 Annual General Meeting

26 July 2018

AI assistant

Macquarie Group Limited — AGM Information 2018

10518_rns_2018-07-25_a0580a62-38a6-45c9-8e53-3655bf831b74.pdf

Disclaimer

Agenda

Key management changes

Board and management changes

Board appointments

Board retirements

Key management changes

Performance reflects the strength of Macquarie’s global platform and the diversity of its business mix

Financial performance

FY18 dividend

49 years of unbroken profitability

Risk culture and conduct

Risk culture and conduct in practice

Recent risk culture and conduct specific achievements

The Integrity Office

A longstanding commitment to renewable energy

$A9.5b+

$A20b+

250+

12.6GW+

A longstanding commitment to renewable energy

Green Investment Group

Other global highlights

Royal Commission

Macquarie Group Foundation

Macquarie in the community

FY18 result: $A2,557m up 15% on FY17

ABOUT MACQUARIE Diverse business mix

Annuity-style businesses (~70%)

Macquarie Asset Management (MAM)

Corporate and Asset Finance (CAF)

Banking and Financial Services (BFS)

Capital markets facing businesses (~30%)

Macquarie Asset Management

Making a contribution to our communities

Copenhagen Airport

Offshore wind farm

Geothermal power

Corporate and Asset Finance

570+

9m

Making a contribution to our communities

Smart meters

Sustainable and affordable long-term energy solutions

Rooftop solar

MotoMe

Innovating the supply of smartphones

Banking and Financial Services

Net profit

$A32.7b

Best

Australia’s 1[st ]

20m+

1 in 3

SMSFs

Most

Making a contribution to our communities

Giving customers choice

Innovating property buying

2010s

1990s

1980s

Award-winning

Disrupting retail banking

Client experience

Helping Australians with their retirement

Commodities and Global Markets

Net profit

No.1

No.1

30yrs+

24-hour

110+

Making a contribution to our communities

Cargill

Macquarie Capital

Net profit

Macquarie Group Limited AGM Information 2018