Macquarie Group Limited

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Result Announcement for the year ended 31 March 2009

Presentation to Investors and Analysts 1 May 2009

Nicholas Moore , Managing Director and Chief Executive Officer Greg Ward , Chief Financial Officer

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Disclaimer

This material has been prepared for professional investors.

The firm preparing this report has not taken into account any customer’s particular investment objectives, financial resources or other relevant circumstances and the opinions and recommendations herein are not intended to represent recommendations of particular investments to particular customers. All securities transactions involve risks, which include (among others) the risk of adverse or unanticipated market, financial or political developments and, in international transactions, currency risk. Due care and attention has been used in the preparation of forecast information. However, actual results may vary from forecasts and any variation may be materially positive or negative. Forecasts, by their very nature, are subject to uncertainty and contingencies many of which are outside the control of Macquarie Group Limited (‘Macquarie”).

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Agenda
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Introduction – Richard Sheppard
Highlights of result – Nicholas Moore
Result analysis and financial management – Greg Ward

Appendices – Additional information:

Unless otherwise specified all information is for the full year ended 31 Mar 09 and increases are on the prior corresponding period

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2. HIGHLIGHTS OF RESULT

Nicholas Moore – Managing Director and Chief Executive Officer

Macquarie Group Limited

Result Announcement for the full year ended 31 March 2009 1 May 2009 – Presentation to Investors and Analysts

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About Macquarie
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Global provider of banking, financial, advisory, investment and funds management services
Main business focus is providing products and services to clients
Listed on Australian Securities Exchange (ASX:MQG)
Regulated by APRA, Australian banking regulator, as non-operating holding company of a licensed Australian bank
Assets under management $A243b
Founded in 1969, currently operates in more than 70 office locations in 26 countries and employs approx 12,700 people

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Continued profitability in a testing year
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Profit of $A871m (in line with guidance provided at Feb 09 Operational Briefing), down 52% on pcp
2H09 profit $A267m vs 1H09 profit $A604m
Operating income before write-downs, impairments, equity accounted losses and other one-off items[1] $A7.6b, down 14% on pcp (in line with guidance provided at Feb 09 Operational Briefing)

— 2H09 $A3.5b vs 1H09 $A4.1b

Results marked by a significant number of one-off items resulting from volatile markets:
Write-downs of $A2.5b for the full year (refer slide 11)[2]
- 2H09 charges of $A1.4b vs 1H09 charges of $A1.1b
- Write-downs stem from continued deterioration of markets and provisions on investments held for long-term investor alignment
Gain of $A197m on financing acquisition of MIPS and $A274m unrealised gain relating to fair value adjustments of issued fixed rate subordinated debt
Very low income tax expense
Total operating income after one-off items $A5.5b, down 33% on pcp

This represents operating income before write-downs, impairment charges, equity accounted losses, provisions and one-off items of income including the profit on the purchase of the MIPS and the fair value adjustment of fixed rate issued debt relating to changes in the market price of Macquarie’s credit spreads. 2. Write-downs include impairment charges on loans and equity investments, equity accounted losses and other charges for provisions

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Continued profitability in a testing year
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Employment expenses down $A1.8b or 44% on pcp
Share based payments expense of $A128m relating to share options, most issued at exercise prices significantly above the current share price
EPS $A3.10, down 54% on pcp
Return on equity 9.9%, down from 23.7% for pcp
Final dividend of $A0.40 per share franked to 60%
Total dividend for FY09 is $A1.85 per share, down 46% on pcp
60% payout ratio on total dividends for the full year which is in line with previously stated dividend policy of 50-60% payout ratio

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Financial performance
Full year ended 31 March 2009
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$Am Operating income of $A5,526m $Am Profit of $A871m
10,000 33% decrease on FY08 1H 2,000 52% decrease on FY08
2H
8,000 1,600
6,000 1,200
4,000 800
2,000 400
0 0
2005 2006 2007 2008 2009 2005 2006 2007 2008 2009
$A EPS of $A3.10 $A DPS of $A1.85
7.00 54% decrease on FY08 3.50 46% decrease on FY08
6.00 3.00
Special
5.00 2.50
4.00 2.00
3.00 1.50
2.00 1.00
1.00 0.50
0.00 0.00
2005 2006 2007 2008 2009 2005 2006 2007 2008 2009
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Diversified by region
International income [1] 52% of total
Total staff approx 12,700; international staff 43% of total
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EUROPE, MIDDLE EAST
ASIA PACIFIC AMERICAS
& AFRICA [3]
Income: $A916m Income: $A1,072m Income: $A359m [5]
(20% of total) (24% of total) (8% of total)
Beijing Seoul
Tianjin Tokyo
Shanghai Calgary
Taipei Vancouver Winnipeg
Hong Kong Hsinchu Seattle
LondonDublinZurichBristolParis AmsterdamFrankfurtViennaMunichStockholmMoscow [4] MumbaiNew DelhiBangkok LabuanManila San FranciscoLos AngelesCarlsbadSan JoseIrvine San DiegoBloomfield HillsChicagoDenver TroyToronto MontrealAtlantaNew YorkBoston
Geneva Kuala Lumpur Singapore Austin DallasHoustonJacksonville
Miami
Jakarta
Mexico
Dubai
Abu Dhabi
Sunshine Coast
Gold Coast Brisbane
Perth
Adelaide SydneyNewcastle
Melbourne Canberra Auckland
Wellington
Christchurch
Sao Paulo
Johannesburg
Cape Town
AUSTRALIA
Income: $A2,207m
(48% of total)
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Income for year to 31 Mar 09. Income in each region excludes earnings on capital and other corporate items. 2. Staff numbers at 31 Mar 09. 3. Excludes staff in Macquarie First South joint venture. 4. Staff seconded to joint venturer not included in official headcount (Moscow: Macquarie Renaissance, Savannah: Medallist). 5. Contribution for the year to 31 Mar 09 impacted by impairments and equity accounted losses. Contribution for the year to 31 Mar 08 included significant asset realisations

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Diversified income
Operating income by source
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Operating income (before loan provisions, impairment charges, equity accounted losses and one-off items of income)

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6 mths to 30 Sep 08 12 mths to 31 Mar 09
$A4.1b $A7.6b
15%
17%
18% 15%
5%
12% 12%
13%
13%
12%
15%
18% 8%
10%
7%
10%
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Lending, leasing and margin Commodities, resources
related income and foreign exchange
Institutional and retail Equity derivatives
cash equities
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Asset and equity investments Third party M&A and advisory income
Macquarie-managed funds (includes Securities funds management
base and performance fees, M&A and administration
advisory and underwriting and asset
sales)
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Extreme conditions resulted in one-off costs,
equity losses & provisions of $A2.5b
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	$Am
One-off costs relating to Mortgages Italy exit1	248
Impairment & equity accounted losses of funds management assets and other co- investments2
Listed Macquarie-managed funds:
—MIG	153
—MCG	113
—MMG	93
—MIC	42
—MCW	24
—Other funds (DUET, MIIF, MOF)	17
Real estate equity investments (including J-Rep)	193
US portfolios of ABS held as available for sale	55
Resources equity investments	120
Other equityco-investments(includingJapan Airports,Spirit Finance)	663
	1,473
Loan impairment provisions3
Real estate loans	170
Resources loans	161
Other loans	165
	496
Impairments recognised on trading asset positions4
Other equity investments carried at fair value through P&L (including BrisConnections)	265
CLO/CDO exposures held in trading portfolio	61
	326
Total	2,543

Includes loss on sale of loan portfolio, write off of capitalised acquisition costs, loan impairment provisions, closure / redundancies costs. 2. $A394m of equity accounted losses is included on the basis impairment write-downs would have been recognised on our co-investments if these equity accounted losses had not been recognised. In addition we have $A468m of equity accounted gains included in operating income. Distributions of $A472m have been received from equity accounted associates which are not recognised in operating income but reduce the carrying value of the investment. 3. Includes specific credit provisions and collective allowance for credit losses recognised in the year ended 31 Mar 09. 4. Selected items included are carried in the trading portfolio at fair value. Realised gains and losses, and unrealised gains and losses arising from changes in the fair value of the trading portfolio are recognised as trading income or expense in the income statement in the period in which they arise

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Impairments, listed security prices and asset
values
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Listed security market prices vs asset market values

		As at 31 Mar 09	As at 31 Mar 09
	Metric	Implied listed security metric1	Asset market metric	Macquarie metric2
Macquarie-managed Fund
Macquarie Office Trust	Capitalisation rate	11.4%3	6 – 9%	9.5%
Macquarie Countrywide Trust	Capitalisation rate	11.0%4	6 – 9%	9.0%
Macquarie Airports	EV/EBITDA	9.9x5	14 – 25x	12.7x5
Macquarie Infrastructure Group	IRR	18.8%6	9 – 14%	14.3%6

MCG trading at 83c on 27 Feb 09 before CCPIB offer of $A2.50 on 31 Mar 09

Implied metric based on closing price. 2. Based on MQG’s carrying value. 3. Based on 31 Dec 08 balance sheet, implied net operating income derived from latest asset valuations and adjusted for Jan 09 capital raising. 4. Based on 31 Dec 08 balance sheet, implied net operating income derived from latest asset valuations and adjusted for Feb 09 DRP. 5. Based on EBITDA (pre specific items) of MAp’s assets for the 12 mths to 31 Mar 09 and net debt as at 31 Dec 08. 6. As at 31 Mar 09

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Strong funding and balance sheet position
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Cash and liquid assets of $A30.3b ($A20.8b Mar 08) significantly exceed short-term wholesale issued paper of $A7.7b ($A19.8b Mar 08)
Funded balance sheet well matched (refer slide 14)
Total deposits increased from $A13.2b at Mar 08 to $A18.8b at Mar 09 , with retail deposit growth particularly strong
Term funding raised since 31 Mar 08 of $A21.5b
Balance sheet initiatives totalling $A15b completed
Capital of $A10.2b , $A3.1b in excess of the Group's minimum capital requirement

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Funded balance sheet continues to
strengthen
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Macquarie Group Limited
$Ab 31 March 2008 $Ab 30 September 2008 $Ab 31 March 2009
80 80
80
ST wholesale
70 70
70 1.1x 1.4x issued paper 3.9x
ST wholesaleissued paper excess Cash and liquidassets (28%) ST wholesaleissued paper excess Cash and liquid Other debt (10%) [1] excess Cash and liquid
(27%) (25%) assets (34%) maturing in the next 12 assets (41%)
60 60 60 mths (9%)
Other debt [1]
maturing in the
50 Other debt [1] 50 next 12 mths 50 Deposits
maturing in thenext 12 mths Trading assets (14%) (25%)
(17%) (17%) Trading assets
(12%)
40 40 Deposits 40 Trading assets (12%)
Deposits Loan assets (22%) ` Loan assets
(18%) < 1 year < 1 year Loan assets
30 (17%) 30 (17%) 30 < 1 year (8%)
Debt maturing
Debt maturing beyond
Debt maturing Loan assets beyond 12 mths (39%)
20 12 mths (22%)beyond > 1 year (24%) 20 12 mths (23%) Loan assets > 1 year 20 Loan assets > 1 year Assets held
(24%) Loan (26%) for sale
capital
10 10 10 Debt
Equity (12%) investmentsEquity [2] Equity (12%) investmentsEquity [2] Hybrid Equity (12%) investmentsEquity [2] investmentsecurities
0 (9%) 0 (9%) 0 (10%) PPE & inta ngibles
Funding sources Funded assets Funding sources Funded assets Funding sources Funded assets
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Note: 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 57.

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

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Consistently strong capital base
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Well capitalised – surplus over minimum regulatory requirements of $A3.1b
Increased regulatory capital by approx $A5.4b over the past three years — Majority of capital raised before global financial crisis - $A3.6b[1]

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Increases in capital since 1 Apr 06 $Ab
$Ab
12 CPS Retained earnings [2] 1.8
MIS
3 $A10.2b
10 MIPS $A9.3b Capital generation from DRP, option
Core equity 1.5
exercise and share purchase plans
8
$A7.2b
Equity capital raising in May 06 0.7
6
$A4.8b 0.8
Equity capital raising in May 07
4
Hybrid capital raising in Jul 08 0.6
2
Total increase in capital 5.4
0
2006 2007 2008 2009
Pre-restructure: Tier 1 regulatory capital (Basel I) Post-restructure: Eligible regulatory capital (Basel II)
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From 1 Apr 06 to 31 Jul 07 . 2. Represents movement in regulatory retained earnings (net of dividends paid) from 1 Apr 06 to 31 Mar 09. 3. MIPS shown net of amounts held by Macquarie related entities

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Assets under management of $A243b
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New equity raisings affected by financial market disruption, particularly during Sep qtr:
Recent movement in $A exchange rate had a positive effect while impact of declining equity values was negative

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$A243b
250
Banking and Financial Services1 $A232b
$Ab
Macquarie Funds Group
Real Estate Banking Division $A197b
200
Macquarie Capital Funds
150 $A140b
$A97b
100
50
0
2005 2006 2007 2008 2009
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The Macquarie CMT, included in BFS AUM above, is a BFS product that is managed by MFG

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Volatility in global markets
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Update on market conditions
As reported at the Operational Briefing in Feb 09, market conditions in 2H09 exceptionally challenging
Significant volatility and market decline particularly in Nov 08 and Feb 09
Global regulatory intervention continues:
Government capital injections into banks (US and Europe) - $US380b[1]
Government guarantees of bank deposits and wholesale funding worldwide
Global government guaranteed bond issuances – $US840b[1]
Australian banking system, while affected, remains sound
Source: Bloomberg at 28 Apr 09

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Volatility in global markets
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Some early signs of markets stabilising:
Equity markets
- Value of the S&P Global 100 up 8% and MSCI Emerging Markets up 14% in Mar 09
- Mar 09 ASX daily volume up 19% on Feb 09, but 40% down on Mar 08
Compression of funding spreads – TED spread[1] down from 223bps in Dec 08 to 92bps in Apr 09[2] (Jun 07 56bps)
Global bond issuance in the Mar 09 qtr was $US1.7t[3] – highest qtrly total in two years[4]
Reduced measures of volatility – VIX index down 14% from Mar 09 (down 53% from peak in Nov 08) to 38[2]
However, significant uncertainties remain and still too early to make any judgements on sustained market improvements
Spread of 3 mth Euro dollar rate over 3 mth US Treasury bill rate. 2. As at 28 Apr 09. 3. Approx 22% relate to global government guaranteed issuances. 4. Source: Thomson

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Market conditions and activity
Macquarie Securities – operating income down 36%
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	Cash Equities		Underwriting	Advisory Funds Management	Advisory Funds Management		Balance Sheet
Australia		Asia		North America		Europe/South Africa
Market conditions		Market conditions		Market conditions		Market conditions
�	Total market turnover FY09 down 25%	�	Total market turnover FY09 down 32%	�	US: Total market volume FY09 up 38%	�	Europe: Total market turnover FY09
	on pcp		on pcp		on pcp ( # shares traded		down 36% on pcp
�	ECM market active in FY09, capital	�	Asia (ex Japan) ECM market significantly		NYSE/NASDAQ)	�	Europe ECM market down, capital raised
	raised $A62.2b vs $A50.5b in pcp1		lower, capital raised for FY09 $US50b vs	�	US ECM market down, capital raised for		for FY09 €105b vs €149b in pcp8
�	Little appetite for retail OTC products		$US163b in pcp4		FY09 $US218b vs $US266b in pcp4	�	South Africa: Total market turnover FY09
�	Unprecedented equity market volatility	�	Little appetite for retail OTC products	�	Canada: Total market turnover FY09		down 6% on pcp
�	Hedge funds less active	�	Unprecedented equity markets volatility		down 11% on pcp ( # shares traded TSX)	�	Unprecedented equity markets volatility
		�	Hedge funds less active	�	Canada ECM market active – FY09
		�	Substantial decline in demand for		capital raised $C41.2b vs $C42.3b in
			swap/P-Note product		pcp7
				�	Unprecedented equity markets volatility
Activity		Activity		Activity		Activity
Cash		Cash		Cash		Cash
�	No. 1 Peter Lee ranking for all Australian	�	No. 3 Greenwich for all North American	�	US building greenfield business	�	Europe building greenfield business
	Equity investors (2008)2		Investors (2008) vs No. 7 in pcp5		— 78 people		— 48 people
�	Maintained its number one position for	�	No 2 Greenwich for all European		— 250 stocks covered		— 100 stocks covered
	market share3 10.7% vs 11.1% in pcp		Investors (2008) vs No. 4 in pcp6		— FY09 profitable		— FY09 break even
ECM		ECM Asia (ex Japan)		�	Canada	�	South Africa
�	Capital raised for FY09 $A7.1b vs	�	Amount raised for FY09 $US2b vs		— Increased research coverage into		— Top 3 ranking (Institutional Investor)
	$A7.7b in pcp		$US4.6b in pcp		more sectors	Delta 1
Derivatives		Derivatives		ECM Canada and US		�	Profitable arbitrage trading opportunities
�	Leading provider of listed warrants	�	No. 1 market share in listed warrants in	�	Capital raised for FY09 $US0.6b vs
�	Lower demand for listed/structured		Singapore and leading provider of		$US1.1b in pcp
	products		warrants in Hong Kong & Korea	Delta 1
�	Adverse impact of extreme market	�	Lower demand for listed/structured	�	Profitable arbitrage trading opportunities
	volatility		products
		�	Adverse impact of extreme market
			volatility
		Delta 1
		�	Profitable arbitrage trading opportunities

Note: Operating income excludes loan provisions, impairment charges and equity accounted losses, unless otherwise stated. 1. Source: Thomson Reuters. 2. Research and Sales Strength. 3. Source: IRESS - Institutional and retail market share FY09. 4. Source Dealogic. 5. Asian Equity Research/Advisory Share for US Institutions – Asian PMs. 6. Asian Equity Research/Advisory Share for European Institutions – Asian PMs. 7. Source: FP Infomart. 8. Source: Bloomberg

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Market conditions and activity
Macquarie Capital – operating income down 15%
299 deals valued at $A203b (304 deals valued at $A199b pcp)
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Cash Equities	Underwriting		Advisory
Infrastructure		TMET

Market conditions

Global M&A volumes in FY09 down 45% on pcp[3]
Global completed transactions in FY09 down 16% on pcp to 379 from 451[1]
TMET subsectors showed mixed signs of improvement over the course of FY09:
PPPs reaching financial close in FY09 down 26% on pcp to 65 from 88[2]
10% outperformance by the global telecommunications equity index in FY09[4]

Activity

Gaming – sector underperforming the global market index by 20% in FY09[5]
Solid advisory activity: 66 deals valued at approx $A95b (86 deals valued at approx $A69b in pcp)

Activity

Adviser:
Reasonable advisory activity: 30 deals valued at approx $A9b (40 deals valued at approx $A33b in pcp)
� Adviser :
£16b refinancing of BAA
APA Group on the $A703m sale of utility assets into an unlisted vehicle
Borealis Infrastructure on acquisition of Teranet Income Fund for $C2.0b
MIP-led consortium on acquisition of Puget Energy for $US7.9b
Unisteel sale to Kohlberg Kravis Roberts & Co. for $S787m
— MYOB on acquisition by Manhattan Software for $A501m
— MCG on potential sale to CPP for $A7.3b
Origin Energy defence of BG Group's $A14b takeover offer and formation of JV with ConocoPhillips of up to $A11b
ACS Infrastructure Developments on the I-595 Corridor Roadway Improvement Project in Florida

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Funds management BalanceSheet
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FIG

Market conditions

Global financial crisis emanated from FIG sector but now showing signs of recovery
$A1.8t of write-downs resulting in vast recapitalisation requirements with $A1.5t in new capital to date[6]
US financial stocks in FY09 down 64% on pcp and Australian financial stocks down 35% on pcp[7]
Banks increasingly focussing on home markets and core businesses

Activity

Reasonable advisory activity: 17 deals valued at approx $A6b (25 deals, valued at approx $A10b in pcp)
Adviser:
- Bupa on merger of Bupa Australia with MBF Australia for $A2.4b cash consideration
Joint Lead Manager
- $A2b institutional placement by QBE
- ANZ, Westpac and Suncorp Metway on hybrid issues
Marubeni-led consortium on approx $S5b capital raising and acquisition of Senoko Power

Funds Management Market conditions

Activity

Equity raised for Funds in FY09 $A7.6b down from $A11.5b in pcp
Fall in equity value of listed securities means many investors overweight unlisted and liquidity concerns
Equity raised for Funds in Mar 09 qtr $A4.2b up from $A3.7b in pcp
Global decline in new commitments to managed infrastructure funds (infrastructure fund raisings in CY08 down 28% on pcp to $US26b from $US36b)[8]
$A9b in fund equity invested during FY09 down from $A12.5b in pcp
Patronage managed assets experiencing some softening in traffic pcp
� Tightening in debt markets leading to lower availability of debt and � Over $A6b equity in unlisted funds available for investment down increased funding costs from $A9b at Mar 08
FY09 total new debt raised $A11b; $A9b refinanced in managed assets. Approx 5% of total debt maturing in the next 12 mths
� FY09 over 60 assets sold for equity proceeds of approx $A5b, up from 20 assets sold for equity proceeds of approx $A3b in pcp

Major fund acquisitions

Puget Energy – MIP, MIP II, MFIT
Pisto SAS (oil storage & distribution) EV $A930m – GIF III
� Condor Group (ferries) – MEIF2
Petermann (buses) – MGOP
GWE (energy) – MEIF2
Waste Industries (non-hazardous waste) –MIP
� Sentient (private aviation) – MGOP

Funds launched

Macquarie SBI Infrastructure Fund (India) - MSIF

Note: Operating income excludes loan provisions, impairment charges and equity accounted losses, unless otherwise stated. 1. Source: Factset. 2. Source: Infrastructure Journal Online & Infrastructure News. 3. Source: Mergermarket M&A volumes for Telecommunications, Media, Leisure and Technology sectors for CY08 vs CY07. 4. MSCI Global Telecommunications Index and MSCI Global Index for FY09. 5. S-Net Global Gaming Index and MSCI Global Index for year ending 31 Mar 09. 6. Source: Bloomberg. 7. Source: IRESS 8. Preqin

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Cash Equities

Underwriting

Advisory

Funds management BalanceSheet

Resources

Market conditions

Global M&A in the Energy and Power sector in CY08 down 30% on pcp to $US435b from $US625b[1]
ECM markets remain open with CY08 Australian issuance totalling $A8b, down 40% on pcp, Canadian issuance totalling $A9.6b, down 53% on pcp[1]
Gold markets strong in the Mar 09 qtr and other base metals showing signs of recovery
Oil and gas markets seen significant falls during FY09 (down 59% for West Texas Intermediate spot oil on pcp and down 60% for Henry Hub Natural Gas spot on pcp[2] )
Increased consolidation particularly cross border deals (primarily Chinese offshore investment)
Activity
Strong advisory activity: 90 deals valued at approx $A69b (52 deals valued at approx $A20b in pcp)
� Adviser:
Rio Tinto on response to the pre-conditional takeover offers from BHP Billiton
New Gold on $C1.3b three way merger with Metallica Resources and Peak Gold
Goldcorp on acquisition of Gold Eagle Mines for total consideration of $C1.5b
Joint Bookrunner and Joint Lead Manager of the $US133m Hong Kong IPO of Real Gold Mining
Underwriter for raising by Agnico-Eagle Mines

Real Estate Market conditions

Industrials

Market conditions

Significant declines in commercial real estate markets in CY08 expected to continue into CY09. Prime office values down from peak to Dec 08 in London (39%), New York (36%), Sydney (21%), Hong Kong (20%) and Singapore (15%)[3]
Weak economic conditions globally, constraining M&A and capital markets activity in FY09
Private equity activity down substantially since CY07. With the value of Australian private equity transactions in CY08 down 74% on pcp from $A43b to $A11b[5]
REIT recapitalisations commenced in Australia in Dec 08 qtr ($A12.6b/23% of market capitalisation), followed by the UK and Asia in the first part of Mar 09 qtr
Increasing investment banking activity in recapitalisations, debt advisory and restructuring. Proportion of equity raisings relating to recapitalisations was 63% in FY09 vs 32% in pcp
Positive signs of recovery in Australian residential market, buoyed by fiscal stimulus, particularly for first home buyers. First home buyers finance commitments in Feb 09 up 64%, from its trough in Jun 08[4]
Chinese IPO activity in CY08 down 78% on pcp from a high of RMB448b to RMB102b[2]

Activity

Reasonable advisory activity: 67 deals valued at approx $A16b (62 deals valued at approx $A48b in pcp)
� Adviser:
Reasonable advisory activity: 29 deals valued at approx $A8b (39 deals valued at approx $A19b in pcp)
� Adviser:
Kirin-owned National Foods on $A880m acquisition of Australian Co-operative Foods (Dairy Farmers)
— LS Cable on $US1.2b acquisition of Superior Essex
Mapletree Logistics Trust on $S607m capital raising in Singapore
Australand on $A461m capital raising
Hastie Group on $A204m acquisition of Rotary Limited
Macquarie CountryWide on a number of US asset sales
MIP and Goldman Sachs Direct on buyout of Waste Industries USA
Macquarie Prime REIT on sale of 26% interest in itself and associated management rights to YTL for $S285m
- Hyde Park Acquisition on acquisition of Essex Crane Rental
Unlisted capital raisings for ABPP (UK), Retirement Village Group (Australia), Macquarie Goodman Japan Logistics Fund
Village Group (Australia), Macquarie Goodman Japan � Joint Sponsor, Joint Global Coordinator, Joint Lead Logistics Fund Manager and Joint Bookrunner, together with CICC on
� Underwriter $S407m Private Placement & Preferential the successful $US1.5b “A Share then H Share” IPO of Offering for Ascendas REIT China South Locomotive & Rolling Stock Corporation

Note: Operating income excludes loan provisions, impairment charges and equity accounted losses. 1. Source: Thomson. 2. Source: Bloomberg. 3. Source: Jones Lang LaSalle. 4. Source: Australian Bureau of Statistics. 5. Source: Mergermarket

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Market conditions and activity
Macquarie Funds Group – operating income down 37%
Total MFG AUM $A44.6b [1] – down 6% on pcp
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Cash Advisory Equities Underwriting Advisory

Funds management

Balance Sheet

Wholesale

Retail

Market conditions[2]

Global AUM, excluding money market funds, down 36%[3]
US mutual fund AUM down by 23%[4]
UK investment funds AUM down by 23%[4]
Major Australian fund managers have seen assets down by over 20%[5]
� Asian mutual fund AUM down 32%[6]

Market conditions[2]

Cash weighting across the Australian AUM market is highest for almost a decade[5]
� Money market funds had $US800b of net inflows globally[3]
Australian Government guarantee has seen a large move to cash[5]
Falling interest rates has seen investors seeking alternative risk adverse sources of income
� Increasing investor preference for vanilla style products
Global hedge fund AUM down by nearly 30%[7]
Australian Equity fund flows down 35%[5]

Activity

Further expanded global investment management resources
� Strong relative fund performance in key sectors[8] :
Credit – Diversified Treasury Fund and Australian Fixed Interest High Grade ranked first quartile over 1, 2, 3, 4 and 5 years[9]
Global REITs – First quartile over 1, 2 and 3 years[9]
Quantitative equities – Pure Index first quartile over 2, 3 and 5 years; Enhanced Equities first quartile over 1 year and Enhanced Plus Equities first quartile over 2, 3 and 5 years[9]
Australian Equities – over $A1b in net inflows for FY09 vs $A700m net inflows in the pcp
Launched Global Multi Events Fund which capitalises on stock specific events

Activity

Winner, Money Management / Lonsec Fund Manager of the year 2008, Fixed Interest Australia
Income Opportunities Fund AUM up by over 70%
Strong credit and fixed interest product ratings
Launch of Australian Equity Income Fund to capitalise on investors seeking an alternative source of income to traditional cash products
Macquarie Emerging Markets Infrastructure Fund launched
Growing AUM in the UK OIEC including Infrastructure securities and REITs
Launched Macquarie and Rogers China Agricultural Index
Expanded agricultural business in Australia and established international presence
Successfully launched Debt Market Opportunities strategy, specifically targeted at the dislocation in the Australian mortgage-backed securities market
Won a significant debt securities mandate from the Future Fund
Introduced high alpha commodity strategy
Clean Technology II Fund launched on foundation of raising over $A200m previously

Note: Operating income excludes loan provisions, impairment charges and equity accounted losses. 1. This excludes $A5.1b AUM from Macquarie’s acquisition of the remaining shares in Allegiance Investment Management in Jan 09. 2. CY08 vs pcp. 3. Strategic Insight "Windows into Global Asset Management Global Fund Distribution" Mar 09. 4. Strategic Insight Global "Global Mutual Fund Flow Watch” - Feb 09. 5. Rainmaker Information "Rainmaker Roundup” Dec 08. 6. Strategic Insight Global “Asia Flow Watch” - Feb 09. 7. IFSL Research Hedge Funds 2009. 8. Past performance is not a reliable indicator of future performance. 9. Mercer Wholesale Surveys

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Market conditions and activity
Treasury & Commodities – operating income up 24%
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	Cash Equities	Underwriting		Advisory Funds Management	Advisory Funds Management			Balance Sheet
Foreign Exchange			Energy		Agriculture		Metals		Freight		Futures
Market conditions			Market conditions		Market conditions		Market conditions		Market conditions		Market conditions
�	High volatility		�	High volatility	�	High volatility and high	�	High volatility	�	Significant reduction in	�	Volumes decline
�	Reduced liquidity		�	Reduced market		correlation	�	Precious metals prices		market liquidity		particularly in 2H09
�	Beginning of decline in			liquidity	�	Reduced market		OK	�	Freight pricing collapse
	volumes		�	Prices significantly		liquidity	�	Base metals prices
				lower	�	Reduced investor		significantly lower
						interest
Activity			Activity		Activity		Activity		Activity		Activity
�	Record year, operating		�	Record result,	�	Operating income well	�	New financing	�	Manage freight book	�	FY09 futures
	income up 31%	on pcp		operating income up		down on pcp. Increased		opportunities across		according to new		execution volumes
�	FX deal volumes up 79%			175% on pcp, driven by		corporate flow offset by		both metals and energy		market conditions		down 29% on pcp
	on pcp			increased market		decreased investor		including distressed	�	Explore opportunities in	�	Focus in expansion
�	Development of	retail FX		penetration and growth		market participation		assets		wet freight		opportunities in the UK
	platform opportunities			of physical gas, power and OTC businesses	�	Scale back investor products offering	�	Exploring coal financing opportunities				and US through acquisition of teams
			�	Total energy volumes	�	Manage correlation						and/or businesses
				up 86% on pcp		books accordingly					�	Acquisition of Chicago
			�	Continued growth in the								based futures clearing
				US power franchise								merchant Shatkin
			�	Entry into European								Arbor
				power
			�	Continue to grow coal
				trading
			�	Acquisition of
				Constellation’s
				downstream natural
				gas business, ranked
				No.2 in North America

Note: Operating income excludes loan provisions, impairment charges and equity accounted losses

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Market conditions and activity
Other banking divisions
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Cash Funds Equities Underwriting Advisory Management

Balance Sheet

Real Estate Banking

Operating income down 54% on pcp

Market conditions

Australian REIT prices at Mar 09 down 61% on pcp
Australian building approvals at Feb 09 down 26% since Mar 08
Credit conditions remain tight with finance still difficult to access and cost of funds elevated
Residential prices down since the peak of cycles[1] in Australia (4%), UK (19%) and US (29%)

Corporate and Asset Finance Operating income up 24% on pcp

Market conditions

Economic slowdown resulting in longer asset utilisation periods and higher residual realisation
Fewer competitors
Debt for customers more limited and priced at a premium
� Weaknesses in a number of industry groups
Integrated circuit / electronics manufacturing
— Freight rail car

Activity

Unlisted capital raising: MGPA Fund III closing in Jun 08 with $US5.2b equity raised and St Hilliers Property Fund 4, successfully closing with $A200m in commitments
Exited the Goodman Asia platform

Activity

Loan and asset portfolio at Mar 09 up 16.5% to $A8.5b on pcp
Strong results from $US750m acquisition of CIT Systems Leasing
Growth initiatives continue in all leasing and financing business units
162ha Stonecutters Ridge residential development launched in Western Sydney
Sale of 26% interest in MP REIT and 50% interest in Prime REIT Management Holdings Pte Ltd (MP REIT Manager)

Note: Operating income excludes loan provisions, impairment charges and equity accounted losses. 1. Source: Bloomberg (23 Apr 09)

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Market conditions and activity
Banking & Financial Services – operating income down 1%
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Private Wealth Intermediary

Funds Balance Management Sheet

Private Wealth/Direct

Intermediary

Funds Management

Balance Sheet

Market conditions

Challenging equity markets with estimated retail market trading volumes down 36% on pcp
Client wealth affected by markets with S&P ASX 200 in Mar 09 down to 3,582 from 5,355 in Mar 08[1]

Market conditions

Continued challenging market conditions on wrap, cash and investment products

Market conditions

Challenging conditions for non-cash products
Agriculture commodity prices have reduced to 2007 levels compared to 2004 levels for other commodities

Market conditions

Increased focus on balance sheet cash levels (Australian household deposits up 23%)[2]
Interest rates in Apr 09 down to 3.00% from 7.25% in Mar 08
Introduction of the Australian government guarantee on deposits in Oct 08

Activity

Macquarie Private Wealth remains No.1 Retail Full Service Stockbroker in terms of volumes and market share
MPW ASX retail turnover down 34% to $A23.9b from $A36.3b in pcp
Entered into strategic partnership with WHK Group Limited
Continued development of international ventures in India, Singapore and HK

Activity

Macquarie Life Inforce risk premiums up 170%; launch of mortgage insurance and SUMO insurance products
Further integration of administrative offerings with wrap, cash, Outplan, Olicc and Coin
Source new funding for Mortgages
� Client numbers now at 600k – up 85k on pcp

Activity

Macquarie Pastoral Fund acquired 8 new properties in NSW and FUM up 256% to $A434m on pcp
- Total retail deposits as at Mar 09 up 103% to $A13.4b from $A6.6b in pcp
- Total retail lending facilities for more than 140k3 clients – remaining steady on pcp
- � Cash Management Account launched in Nov 08
Winton Global Alpha Fund upgraded by Zenith
Launch of internet cash product Cash 08 XL � Sale of margin loan portfolio to Leveraged
� Establishment of channel to distribute Equities4 products to wholesale investors
Increase cash management focus through advertising
Increased focus on direct, non-advised clients
Client numbers now at 273k – 21,500 up on pcp
Adviser numbers remain steady at 430

Note: Operating income excludes loan provisions, impairment charges and equity accounted losses. 1. FY09 vs FY08. 2. Source: APRA mthly banking statistics Household Deposits on Australian Banks of Individual Banks Feb 09 vs Mar 08. 3. Included in Private Wealth and Intermediary client numbers. 4. Wholly owned subsidiary of Bendigo and Adelaide Bank

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Proposed changes to remuneration
arrangements
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Macquarie’s remuneration approach aims to:
align the interests of staff with shareholders; and
attract and retain quality staff
Remuneration arrangements refined in light of global remuneration and regulatory trends
Proposed changes remain consistent with Macquarie’s long-standing approach
Proposals expand on modifications made in 2008 which included an increase in the portion of performance based profit share deferred and allocated as equity for the CEO and other members of the Group’s Executive Committee
Key proposed changes announced during FY09 include:
For Executive Directors (EDs), profit share paid out in cash will be reduced and the percentage of retained profit share will be increased with retained profit share fully invested in a combination of fully paid ordinary Macquarie shares and Macquarie-managed fund equity
For EDs the vesting and payout schedule for retained profit share has been changed to 3-7 years
Amend payout of unvested retained profit share for departing EDs to include clawback provisions
Transitional arrangement that will align the old and new schemes
For all staff other than EDs, any retained profit share will be delivered in future in fully paid ordinary Macquarie shares
New share options granted will be substantially reduced, restricted to CEO and Executive Committee members, resulting in a reduction in the share options expense over time
If approved by shareholders, currently estimated that approx $A500m of primarily prior years’ and some current year retained profit will be applied to the grant of fully paid ordinary Macquarie shares. These will be provided via the issue of new shares, priced at VWAP from 4 May 09 to 29 Jul 09
Proposed changes to apply to remuneration for current year as well as future years
Shareholder approval to be sought at July AGM
Aim to deliver best outcome for Macquarie and shareholders

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Macquarie model – focus over the
medium term
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Client driven business
Main business focus is providing products and services to clients
Trading businesses focussed on client transactions
- Minimal proprietary trading
Alignment of interests with shareholders, investors, staff
Alignment through co-investment by Macquarie Group and staff
Performance driven remuneration
Conservative approach to risk management
- Conservative capital and funding profiles
Apply a stress test approach to all risk types, examining the consequences of worst case outcomes and gaining confidence they can be tolerated
Determine aggregate risk appetite by assessing risk relative to earnings more than by reference to capital
Incremental growth and evolution
Significant portion of profit comes from businesses that did not exist five years ago but grow from areas of real expertise
Business initiatives driven from within the Operating Groups which are closest to markets and clients
Diversified by business and geography
An ability to adapt to change

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Macquarie model – focus over the medium term
2004-2009
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Operating income
Organic growth
Original
(23%)
businesses
(37%)
2009
2004
New businesses
(40%)
$A2.8b
$A7.6b [1]
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40% of FY09 operating income[1] comes from businesses that did not exist 5 years ago

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

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Macquarie model – focus over the medium term
2004-2009
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Macquarie Macquarie Macquarie Securities Capital Funds Group Businesses entered 2004 to 2009 Businesses entered 2004 to 2009 Businesses entered 2004 to 2009 contributed approx 73% to Macquarie contributed approx 41% to Macquarie contributed approx 43% to Macquarie Securities’ FY09 operating income Capital’s FY09 operating income Fund Group’s FY09 operating income Businesses/activities entered include: Businesses/activities entered include: Businesses/activities entered include: 2004 Geographic Expansion 2005 � Purchased ING Asia cash equities including arbitrage trading 2004 � Enter retail platform distribution market � Established Structured Equity Finance in Europe � Acquisition of ING’s Asian ECM business 2006 2005 � Middle East office established � First to market with Infrastructure Securities Funds now � Commenced Indian cash equities business 2005 approx $A2b AUM 2006 � India offices established � Launch of Global REITs capability, now over $A500m AUM � Established synthetic products business 2006 � Establish global private equity capability � JV with First South Securities, South Africa � China offices established � Offered new Capital Protected Lending Products and 2007 2007 Agriculture investments � Established Prime Platform in Australia � Acquisition of Orion Securities (Canada) and Giuliani Capital � Establish offshore investment teams, now over 70 � Acquired 100% of Orion Securities in Canada Advisors (US) investment professionals 2008 Sector / Product Expansion 2009 � Commenced greenfield businesses in Europe and US 2004 � Acquired two US fixed income businesses and an emerging Businesses/activities exited: � New unlisted funds market equity manager � Japanese Derivatives JV – Mizuho (insignificant contribution 2005 Businesses/activities exited: to FY06 income) � Offshore industrials M&A and ECM 2008 � South African Derivatives JV – Nedbank (loss making FY08) 2007 � Macquarie IMM Korea sold

First to market with Infrastructure Securities Funds now approx $A2b AUM
Launch of Global REITs capability, now over $A500m AUM
� Establish global private equity capability
Offered new Capital Protected Lending Products and Agriculture investments
Establish offshore investment teams, now over 70 investment professionals
Acquired two US fixed income businesses and an emerging market equity manager

� US Restructuring Advisory 2008

Renewables and climate change

Businesses/activities exited:

� Largely exited Infrastructure Bonds in Australia and cross border leasing, due to changes in market conditions and regulation

Thai Military Bank JV in Thailand; Shinsei JV in Japan

Note: 2004 figures for the above operating groups have been amended to reflect internal restructures during the period. All figures represent operating income before loan provisions, impairment charges and equity accounted losses, unless otherwise stated

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Macquarie model – focus over the medium term
2004-2009
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Treasury and Commodities

Businesses entered 2004 to 2009 contributed approx 30% to Treasury & Commodities’ FY09 operating income

Businesses/activities entered include: 2005

� US natural gas trading � UK natural gas trading 2006

� UK gas supply & metering � Emissions trading � Coal trading & hedging services � Dry Freight � Emerging markets platform 2007

� US power trading � Renewables hedging and trading 2008 � Credit trading 2009

� European power

Businesses/activities exited:

� Physical wool trading due to change in economics in the underlying commodity

� Exit Kookmin Bank joint venture and RBS joint venture due to maximisation and natural maturity of the relationships

Corporate and Asset Finance Businesses entered 2004 to 2009 contributed approx 52% to Corporate and Asset Finance’s FY09 operating income

Businesses/activities entered include:

2004 � Expanded finance, trading and remarketing activities in electronics manufacturing, testing and assembly equipment � Launch of commercial aviation engine finance � Roll out and lease finance of approx 1m domestic gas and electricity meters in UK

� Commenced specialist full lifecycle services business for technology equipment

2006 � Established rolling stock leasing business 2007

� Securitised in excess of $A5b of motor vehicle and equipment leases � Expansion of equipment finance activities to China and Europe (and Japan in 2009) 2008

� Acquisition of CIT Systems Leasing business in US 2009

� Established lifecycle services joint venture with NEC Japan � Various – Entered strategic alliances with various leading equipment manufacturers

Businesses/activities exited:

Coriolis Water Services – sold: non-core activity and made no material net contribution to income

Banking and Financial Services Businesses entered 2004 to 2009 contributed approx 8% to Banking and Financial Services’ FY09 operating income

Businesses/activities entered include:

2004

Established Macquarie Premium Funding
2005 � Acquired Coin Financial Planning Software 2006
Established Macquarie Life
2007
Launched Macquarie Credit Cards
Acquired 51% of online forex company OzForex
� Acquired percentage stake in Olicc � Launched Macquarie Pastoral Fund � Established joint venture with Indian financial services company Religare

2008

Established private bank in Hong Kong and Singapore
2009 � Launched UK premium platform service � Entered strategic partnership with WHK Group Limited

Businesses/activities exited:

2008

Mortgages Australia, Mortgages US – ceased mortgage origination due to closure of securitisation markets
Sale of Mortgages Italy– due to closure of securitisation markets
� Thailand retail broking – ceased operation due to equity market conditions
Macquarie Personal Finance – due to market conditions

2009

� Macquarie Margin Lending sold to Leveraged Equities due to market conditions (contributed less than 1% to balance sheet)

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Macquarie model – focus over the medium term
2009+
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Macquarie Macquarie Securities Capital

Macquarie Funds Group

Cash

Long term view to be a global broker
Maintain No.1 market position in Australia
Continue to grow market share in Asia and improve panel reviews to be ranked top tier with most clients
� Increase Canadian research coverage into more sectors
Complete the build out of the greenfield businesses in US and Europe
North American and European acquisition opportunities

Derivatives

Grow market share
Develop and Indian derivatives business as that market opens up
Grow the derivatives business in South Africa
Build out Institutional derivatives offering

Delta 1

Grow market share
Expand arbitrage trading into other markets and products
Build out synthetic products platform
Grow market share as competitors reduce/exit
� Increase diversity, accessibility and distribution of our offshore product range via

Australia

Grow market share as competitors reduce/exit

International

launch SICAV for European, Asian and Latin American investors
Grow market share as competitors reduce/exit
Expand US, Canadian, European and UK ECM and third party advisory businesses through selective recruitment and potential acquisitions
- expand current OEIC product range for UK investors
Expand distribution of high alpha commodity strategies and emerging market infrastructure securities fund
Continued expansion of Asian ECM and Advisory business including development of securities and trust company activities in China
Variable annuity products designed to provide retirees with certainty of income for life and participation in market growth through potential for guaranteed income to grow
Renewables development globally – wind, biosequestration and solar
Expand resources M&A capabilities in North America
Geographic expansion: new offices in Mexico City, � Fund options such as puts and calls and zero cost Dubai and Stockholm collars over funds
Expansion of US restructuring advisory business � Maintain and grow agricultural products, with greatly
� reduced competition
Continued expansion of unlisted funds in existing geographies: US, Europe, Korea, India, and Middle East
Protected lending that is protected during the term of the investment and not just at maturity.
Pursue strategic acquisitions and acquire controlling stakes in high-quality specialised asset managers
New unlisted funds focussing on emerging markets: Mexico, Russia
Using strong risk and investment management skills to offer free beta exposure to investors via True Index funds
Offering deposit style products with equity upside

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Macquarie model – focus over the medium term
2009+
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Treasury and Commodities

Australia

Grow market share as competitors reduce/exit
� Targeted growth of OTC energy businesses, including coal trading
Refine and grow client focussed businesses in FX, agriculture, futures and debt markets

United States

Grow market share as competitors reduce/exit
� Acquisition of Constellation’s downstream natural gas trading operation
Continued development of credit trading business
� Continued development of the US Futures business

United Kingdom

Grow market share as competitors reduce/exit
� Expansion of environmental products business
Selective expansion of energy markets and regions traded
Acquisition of gas metering business (Energy Assets Limited)
Build out of wet freight trading business

Corporate and Asset Finance Australia:

Grow market share as competitors reduce/exit
� Organic growth through systems improvement, client service and competitor exits
Deploy strong balance sheet in existing corporate and asset finance businesses to benefit clients
Launch Macquarie Group products through existing distribution channels
� Source fee income through leveraging distribution channels to offer third party product – insurance, maintenance, asset acquisitions

International

Grow market share as competitors reduce/exit
� Selective recruitment to support corporate finance / lending opportunities – Europe, US and Australia
� Expand primary lending and secondary debt market participation
� Establish preferred third party non-recourse financing relationships in China
Expand medical equipment leasing activities - US
� Growth of rolling stock financing in Europe � Establish Maritime leasing business– vessel and support infrastructure
� Growth of Smart Metering leasing and roll out activities � Expand asset lifecycle service solutions and offering in select international locations
Establish leasing and asset finance joint ventures with select partners
� Pursue acquisitions in speciality leasing space to capitalise on competitor exit
� Launch speciality leasing funds management business in the US

Banking and Financial Services

Australia

Grow market share as competitors reduce/exit
Pursue selective acquisition opportunities, eg strategic partnership with WHK Group Limited
Growth of specialist high margin relationship banking/lending/advice
Continue to pursue growth initiatives: Wrap UK, payment/card solutions using new payWave technology, expansion of Self Managed Super solutions
Expand premium funding business for SMEs
Increase online investment presence – Macquarie Edge/Macquarie Direct
Source new funding for mortgage business
Providing intermediary clients with a genuine alternative partner for:
Core banking products
Wealth management
Innovative administrative solutions

Offshore

Grow market share as competitors reduce/exit
� Expand UK offering on the back of April launch of premium platform service
Launch tailored products for the Indian market with JV partner Religare
Ramp up UHNW Private Wealth offering throughout Asia and China

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Outlook
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Market conditions likely to remain challenging, making short-term forecasting extremely difficult
We continue to maintain a cautious stance with a conservative approach to funding and capital
FY10 trading likely to be characterised by:
Income statement:
fewer one off items (e.g. write-downs and provisions)
higher compensation ratio to be consistent with historic levels
increased effective tax rate to be consistent with historic levels
lower earnings on capital reflecting lower global interest rates
- higher cost of funding inclusive of approx $A200m for Australian government guarantee
Balance sheet:
decrease in cash balances as funds deployed across the businesses
maintain equity investments at or below existing levels
- lower investment levels in listed funds
Strong balance sheet, strong team and market conditions provide opportunities for medium term growth, building upon:
Strength, diversification and global reach of our businesses
Ongoing organic growth initiatives and incremental acquisitions
Effective risk management

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2. RESULT ANALYSIS AND FINANCIAL MANAGEMENT

Greg Ward – Chief Financial Officer

Macquarie Group Limited

Result Announcement for the full year ended 31 March 2009 1 May 2009 – Presentation to Investors and Analysts

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Key drivers of year
----- End of picture text -----

Global market disruption impacted all operating group results
Significant decline in Macquarie Securities and retail broking income, particularly in the second half
Increased contribution from energy markets, particularly US gas and electricity trading
Reasonable corporate finance and advisory deal flow
Good contribution from base fees, performance fees down on pcp
Significant write-downs, equity accounted losses, provisions and other one off costs totalling $A2.5b:
Funds management assets and other co-investments $A1,473m
- Italian mortgages sale $A248m
Loan provisions $A496m
Trading asset positions $A326m
Asset sales well down on pcp
Financing the acquisition of MIPS
Fair value adjustments of issued fixed rate subordinated debt
Substantial reduction in staff profit share expense reflecting lower NPAT and ROE
Very low tax expense
Maintained conservative levels of capital and liquidity

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Income Statement
----- End of picture text -----

	Mar 09 $Am	Mar 08 $Am	Mvt %	Key drivers	Key drivers
Net interest income	938	817	15	�	Increase in average loan volumes, increase in net margins
Fee & commission income	4,045	4,645	(13)	�	Reasonable M&A deal flow, brokerage down, performance fees down
Trading income	1,212	1,851	(35)	�	Strong energy market volumes, difficult equity market conditions
Share of net profits of associates	468	156	200	�	Broadly comparable to distributions received
Other asset & equity investment income	550	1,103	(50)	�	Asset sales down on strong pcp
Other income	354	220	61	�	Increased operatinglease income contribution
Operating income before write-downs,	7,567	8,792	(14)
impairments, equity accounted losses and
other one-off items1
Financing the acquisition of MIPS	197	-	n/m	�	Financing the acquisition of £150m in Feb 09
Fair value adjustment on fixed rate subordinated	274	72	281
debt
Write-downs, impairment charges	(1,901)	(616)	209	�	Refer slide 11
Equity accounted losses	(394)	-	n/m	�	Refer slide 11
Mortgages Italy2	(217)	-	n/m	�	Loss on sale ofportfolio and associated restructuringcosts
Total operating income(as reported)	5,526	8,248	(33)
Total operatingexpenses	(4,537)	(6,043)	(25)	�	Reduction in staff expenses
Netprofit before tax and minorities	989	2,205	(55)
Income tax expense	(15)	(317)	(95)	�	Refer slide 46
Minorityinterests	(103)	(85)	21
Netprofit after tax	871	1,803	(52)
Expense to income ratio	82%	73%
Compensation ratio	41%	47%

This represents operating income before write-downs, impairment charges, equity accounted losses, provisions and one-off items of income including the profit on the purchase of the MIPS and the fair value adjustment of fixed rate issued debt relating to changes in the market price of Macquarie’s credit spreads. 2. Excludes $A31m of restructuring and redundancy costs classified as operating expenses

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Net profit contribution by operating group
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	Mar 09	Mar 08	*Movement*
	$Am	$Am	%
Macquarie Capital	1,508	2,377	(37)
Treasury & Commodities	839	694	21
Macquarie Securities	310	1,217	(75)
Banking & Financial Services1 (excluding Mortgages Italy)	288	267	8
Macquarie Funds	70	309	(77)
Corporate and Asset Finance	143	127	13
Real Estate Banking	31	184	(83)
	3,189	5,175	(38)
Mortgages Italy3	(248)	-	n/m
Write-downs, impairment charges and equity accounted losses	(2,295)	(616)	273
Financing the acquisition of MIPS	197	-	n/m
Fair value adjustment on fixed rate subordinated debt	274	72	281
Corporate4	(246)	(2,828)	(91)
Net profit after tax	871	1,803	(52)

Banking and Financial Services result excludes loss on sale of the Mortgages Italy portfolio. 2. The profit contribution by operating group includes income from external customers and transactions with other operating groups, direct operating costs (e.g. salaries & wages, occupancy costs and other direct operating costs), internal management charges, and excludes write-downs on co-investments, certain corporate costs not recharged to operating businesses. The amounts are before income tax. 3. 2009 includes loss on sale of portfolio, restructuring and redundancy costs and loan provisions. Excludes operating losses and associated internal management charges which eliminate on consolidation in the Group’s statutory P&L. 4. Includes Group Treasury, Head Office and central support functions. Costs within Corporate include unallocated Head Office costs, employment related costs, earnings on capital, non-trading derivative volatility, income tax expense and amounts attributable to minority interests. Write-downs on co-investments in the Corporate segment are reflected in “Write-downs, impairment charges and equity accounted losses” above

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Macquarie Capital
Result
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Net interest income / (expense)1 Funds management income: – base fees	(381) 518 Mar 09 $Am	(289) 523 Mar 08 $Am	32 (1) % Mvt
– performance fees	219	321	(32)
M&A, advisory and underwriting income	1,156	1,310	(12)
Internal revenue2 Operating lease income Other fee income Asset and equity investment income	256 94 179 757	389 35 165 798	(34) 169 8 (5)
Other income /(expense) Total income	(19) 2,779	11 3,263	(273) (15)
Total expenses	(1,271)	(886)	44
Write-downs, impairment charges and equityaccounted losses Netprofit contribution3 EUM ($Ab) AUM ($Ab) Profit contribution3 (before write-downs, impairment charges and equity accounted losses) Staff numbers	(1,257) 251 2,617 159.5 53.3 1,508	(140) 2,237 58.0 148.1 2,377 2,786	n/m (89) (8) 8 (37) (6)

Extremely challenging market conditions, well down on record pcp
Base fees down 1% on pcp
EUM $A53b – 8% down on pcp reflecting listed market declines
$A7.6b in new capital raisings by Macquarie Capital's managed funds and consortia
Performance fees: MAG, DUET, managed assets in 1H09, minimal performance fees in 2H09
Reasonable advisory activity: 299 deals valued at $A203b (304 deals valued at $A199b in pcp)
Asset sales: Longview oil & gas assets, Red Bee Media, positions in Dyno Nobel and Boart Longyear in 1H09, minimal asset sales in 2H09
Write-downs, impairment charges and equity accounted losses include:
Macquarie managed funds including MIG, MCG, MMG, MIC ($A417m)
US portfolios of ABS held as available for sale ($A55m)
Other equity investments including Japan Airports, Spirit Finance, Gateway Casinos, European Directories, allowance made for BrisConnections ($A752m) Americas
Loans and receivables ($A33m) MacCap Securities MacCap
� Expenses up 44% 19% Advisers 45%
— One-off costs related to business restructuring
Full year impact of 2008 growth in new offices and certain businesses
Devaluation of AUD increasing offshore expenses
Includes internal net interest expense and transfer pricing on funding provided by Group Treasury that is eliminated on consolidation in the Group’s statutory P&L. 2. Internal revenue allocations are eliminated on consolidation in the Group’s statutory P&L. 3. Management accounting profit before unallocated corporate costs, profit share and income tax

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Treasury and Commodities
Result
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	Mar 09 $Am	Mar 08 $Am	% Mvt
Fee and commission income	166	160	4
FX trading income1 Commodities trading income1	164 650	131 409	25 59
Interest rate trading income1	163	158	3
Asset and equity investment income	130	130	-
Internal revenue2	66	95	(31)
Other income	28	16	75
Total income	1,367	1,099	24
Total expenses	(528)	(405)	30
Profit contribution3
(before write-downs, impairment charges and	839	694	21
equity accounted losses) Write-downs, impairment charges and equity accounted losses	(330)	(92)	n/m
Net profit contribution3	509	602	(15)
Staff numbers	680	611	11

Good contribution from commodities and foreign exchange - market volatility and good volumes key drivers of result
significant contribution from US natural gas, good contributions from energy OTC products and US electricity businesses
FX trading result driven by volatile currency markets leading to increased client demand
Interest rate trading good contribution in difficult market conditions
Good contribution from sale of oil and gas interests and equity investments in the resources sector
Acquisition of Constellation Energy’s Houston based downstream natural gas trading operations in Mar 09
Write-downs, impairment charges and equity accounted losses include:
Resources equity co-investments ($A120m)
Net loan impairment charges ($A160m)
CLO/CDO portfolio ($A50m)

� Expenses up 30%

Increased investment in IT infrastructure
The relative contribution of Net interest income and Trading income to Income from trading activities can vary from period to period depending on the underlying trading strategies undertaken by Macquarie and its clients. As such, to obtain a more complete view of the group’s trading activities, Net interest income has been combined with the various Trading income categories above. 2. Internal revenue allocations are eliminated on consolidation in the Group’s statutory P&L. 3. Management accounting profit before unallocated corporate costs, profit share and income tax

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Macquarie Securities
Result
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	Mar 09 $Am	Mar 08 $Am	% Mvt
Equity products2	410	888	(54)
Brokerage and commission income	688	867	(21)
Other fee income	156	179	(13)
Internal revenue3	121	220	(45)
Other income	4	13	(69)
Total income	1,379	2,167	(36)
Brokerage & commission expenses	(256)	(360)	(29)
Other expenses Total expenses	(813) (1,069)	(590) (950)	38 13
Profit contribution4 (before write-downs, impairment charges and equity accounted losses)	310	1,217	(75)
Write-downs, impairment charges and equity accounted losses	(35)	-	n/m
Net profit contribution4	275	1,217	(77)
Staff numbers	1,540	1,596	(4)

Equity products income down 54% on pcp, 2H09 especially impacted by:
Significant decline in demand for listed/structured products
Unprecedented volatility during 2H09 which resulted in trading losses
Arbitrage trading income slightly down on pcp
Substantial decline in Synthetic Products revenues
Significantly lower securities borrowing and lending volumes
Brokerage, commission and other fee income down on strong pcp:
A decline in equity market values, the de-leveraging of certain market participants and a flight of investors from equities saw significantly lower equity market volumes than pcp
Other expenses up 38% driven by continued investment on enhancing IT platforms and devaluation of AUD increasing offshore expenses
Includes internal net interest expense and transfer pricing on funding provided by Group Treasury that is eliminated on consolidation in the Group's statutory P&L. 2. The relative contribution of Net interest income and Trading income to Income from trading activities can vary from period to period depending on the underlying trading strategies undertaken by Macquarie and its clients. As such, to obtain a more complete view of the group’s trading activities, Net interest income has been combined with Trading income above. 3. Internal revenue allocations are eliminated on consolidation in the Group's statutory P&L. 4. Management accounting profit before unallocated corporate costs, profit share and income tax. 5. Institutional and retail market share financial year to date

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Banking and Financial Services
Result
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	Mar 09 $Am	Mar 08 $Am	% Mvt
Net interest income1 Funds management income	425 229	338 247	26 (7)
Brokerage and commissions Platform and other administration fee income	198 134	256 144	(23) (7)
Asset and equity investment income Banking, lending and securitisation fee income	49 75	1 57	n/m 32
Internal revenue2 Profit contribution3 Total income Other income Total expenses	(22) (873) 1,161 73	7 (903) 1,170 120	n/m (3) (1) (39)
(excl. Mortgages Italy and before write-downs, impairment charges and equity accounted losses)	288	267	8
Mortgages Italy4	(248)	-	n/m
Write-downs, impairment charges and equityaccounted losses Netprofit contribution3	(139) (99)	(29) 238	379 n/m
AUM5 ($Ab)	19.2	23.1	(17)
FUM / FUA6($Ab)	104	114	(9)
Staff numbers	2,598	3,058	(15)

� Net interest income growth:

Retail deposits up 103% from Mar 08 to $A13.4b – new products include Cash XL and Cash Management Account
Improved margins from Mortgages Australia as portfolio run-off continues
Majority of margin lending business sold in Jan 09
CMT down 16% from Mar 08 to $A14.7b
Challenging equity markets impacting broking volumes — MPW’s volumes down 34% on pcp
MPW remains No. 1 full service retail stockbroker[7 ] in Australia.

� Wrap FUA down 22% from Mar 08 to $A17.5b

Good inflows offset by negative market movements
Macquarie Wrap ranked No. 1 for Wrap inflows in the Australian market for CY08
Asset and equity investment income – sale of majority of margin lending business in Jan 09
Write-downs, impairment charges and equity accounted losses include:
Loss on sale of BrisConnections holding in 1H09 ($A20m)
Impairment charges on other equity co-investments ($A27m)
— Loan impairments ($A92m)
Italian mortgages: loss on sale of portfolio of $A248m
Includes internal net interest expense and transfer pricing on funding provided by Group Treasury that is eliminated on consolidation in the Group’s statutory P&L. 2. Internal revenue allocations are eliminated on consolidation in the Group’s statutory P&L. 3. Management accounting profit before unallocated corporate costs, profit share and income tax. 4. Excludes operating losses and internal management charges (eliminated on consolidation in the Group's statutory P&L) totalling $A59m. These amounts are included in “Profit contribution” above. 5. The Macquarie CMT, reported in AUM above, is a BFS marketed product that is managed by MFG. 6. Funds under management / advice/ administration (“FUM / FUA” ) includes AUM, funds on BFS platforms (eg. Wrap FUA), total loan & deposit portfolios, client CHESS holdings and funds under advice (eg. Macquarie Private Bank). 7. Based on consideration traded

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Macquarie Funds
Result
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	Mar 09 $Am	Mar 08 $Am	% Mvt
Net interest income / (expense)1	65	70	(7)
Funds management:
– base fees	142	158	(10)
– performance fees	14	45	(69)
Other fee and commission income	129	111	16
Internal revenue2 Asset and equity investment income	4 1	42 105	(90) n/m
Other income	7	45	(84)
Total income	362	576	(37)
Brokerage & Commission Expenses	(72)	(87)	(17)
Other Expenses	(220)	(180)	22
Total expenses	(292)	(267)	9
Profit contribution3
(before write-downs, impairment	70	309	(77)
charges and equityaccounted losses)
Write-downs, impairment charges and equityaccounted losses	(25)	(2)	n/m
Netprofit contribution3	45	307	(85)
AUM4 ($b)	49.7	47.3	5
Staff numbers5	583	496	18

Result impacted by challenging market conditions
Increased interest margins from fixed rate loan portfolio combined with full year contribution from retail loans issued to investors in Jun 07
Offset by increased funding costs
Base fees lower across all asset classes, particularly real estate and infrastructure
Other fee & commission income includes structuring fees, capital protection fees, wholesale threshold management fees and internal fees received for managing BFS products including the CMT
Minimal asset and equity investment income
pcp included profit on sale of Macquarie-IMM
Substantially lower contribution from seed investments and performance fee products due to adverse affects of market volatility

1.Includes internal net interest expense and transfer pricing on funding provided by Group Treasury that is eliminated on consolidation in the Group’s statutory P&L. 2. Internal revenue allocations are eliminated on consolidation in the Group’s statutory P&L. 3. Management accounting profit before unallocated corporate costs, profit share and income tax. 4. AUM does not include the Macquarie CMT ($A14.7b at 31 Mar 09) which is a product marketed by BFS and managed by MFG. 5. MFG’s headcount increased by 198 new staff during the year, offset by a reduction in staff 2.of 111. The acquisition and consolidation of fund managers in the US during the year, as well as the internal transfer of a European distribution business from the Macquarie Securities Group, contributed 66 staff members to the headcount increase in 09

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Corporate and Asset Finance
Result
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	Mar 09 $Am	Mar 08 $Am	% Mvt
Net interest income / (expense)1	129	101	28
Operating lease income	114	67	70
Fee and commission income	14	13	8
Internal revenue2	17	8	113
Other income	14	44	(68)
Profit contribution3 (before write-downs, impairment charges and Total income Total expenses	143 (145) 288	127 (106) 233	13 37 24
equity accounted losses)
Write-downs, impairment charges and equity accounted losses	(77)	(15)	413
Net profit contribution3	66	112	(41)
Staff numbers	539	546	(1)

Interest income up 28%
Growth in the loan and leasing portfolios
Increased margins
Full year impact of CIT Equipment Leasing (acquired in Dec 07)
Operating lease income up 70%
Portfolio growth mainly in Electronics business
Other income down 68%
Reduced asset sales activity in second half of year
Write-downs/impairments of $A77m
Impairment against the value of inventory and the residual value of lease assets ($A33m)
Loan provisions ($A44m)
Includes internal net interest expense and transfer pricing on funding provided by Group Treasury that is eliminated on consolidation in the Group’s statutory P&L. 2. Internal revenue allocations are eliminated on consolidation in the Group’s statutory P&L. 3. Management accounting profit before unallocated corporate costs, profit share and income tax

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Real Estate Banking
Result
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	Mar 09 $Am	Mar 08 $Am	% Mvt
Funds management:
– base fees	32	31	3
– performance fees	2	18	(89)
Advisory fee income	11	-	n/m
Other fee income	10	18	(44)
Asset and equity investment income	68	224	(70)
Internal revenue1	(12)	(39)	(69)
Other income	14	22	(36)
Total income	125	274	(54)
Total expenses	(94)	(90)	4
Profit contribution2
(before write-downs, impairment charges and equity accounted losses)	31	184	(83)
Write-downs, impairment charges and equity accounted losses	(387)	(314)	23
Net profit contribution3	(356)	(130)	174
AUM ($b)	14.8	13.6	9
Staff numbers	136	213	(36)

Difficult market conditions have resulted in write-downs / equity losses / provisions including:
Real estate equity investments and inventory ($A192m)
Real estate loans ($A170m)
MCW, MOF ($A25m)
Base fees flat, performance fees well down
Advisory fees includes fees on the sale of the interest in Macquarie Prime REIT and its manager
Decrease in other fee income due to significantly reduced transaction activity across all real estate markets.
Assets and equity investment income down due to lower level of asset realisations
Good contribution from MGPA equity accounted income
pcp included sale of Macquarie ProLogis Trust Management
Significant transactions include the close of MGPA Fund III at $US5.2b (MGPA Asia Fund III $US3.9b and MGPA Europe Fund III $US1.3b)

Internal revenue allocations are eliminated on consolidation in the Group’s statutory P&L. 2. Management accounting profit before unallocated corporate costs, profit share and income tax. 3. Management accounting profit before unallocated corporate costs, profit share and income tax

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Expenses
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Expenses down 25% - employment expenses down 44% (significantly lower profit share)
Overall decrease in headcount (Mar 09: 12,716; Sep 08: 13,898; Mar 08: 13,107)
Expense to income ratio 82.1% (FY08: 73.3%)
Compensation ratio 41% (FY08: 47%) - impacted by significant write-downs, impairments charges and equity accounted losses

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—
Expect compensation ratio to return to historical levels of 45-50%
$Am
8,000
6,000
4,000
2,000
0
2008 2009
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Other
Non-salary technology
Occupancy
Brokerage & commisions
Employment
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Taxation
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	Mar 09	Mar 08
	%	%
Corporate tax rate	30.0	30.0
Rate differential on offshore income	(26.5)	(14.3)
Non-deductible distribution paid/provided on MIS	1.1	0.5
Non-deductible options expense	4.2	1.7
Other	(7.1)	(2.9)
Effective tax rate	1.7	15.0

Permanent differences on operating income before write-downs, impairments, equity accounted losses and other one-off items[1] have been relatively stable
Lower income due to write-offs in current period has reduced the effective tax rate compared with pcp
Funding and associated hedging transactions have reduced income and tax expense (approx 12% reduction in reported effective tax rate)
Expect effective tax rate to return to historical levels of 15-20%

This represents operating income before write-downs, impairment charges, equity accounted losses, provisions and one-off items of income including the profit on the purchase of the MIPS and the fair value adjustment of fixed rate issued debt relating to changes in the market price of Macquarie’s credit spreads

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Equity investments of $A7.2b
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� Approx $A0.5b (60%) of the net increase in equity investments relates to FX movements

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$Ab
7.0
6.0
5.0
4.0
3.0
2.0
1.0
0.0
Mar 08 Mar 09
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Category	Description
Transport, industrial and infrastructure	Includes investment in Miclyn Express Offshore (transferred in from HFS assets), Japan Airport and BrisConnections. Most underlying operating businesses operating well, some impairment charges taken
Telecommunications, Internet, Media and Entertainment	Includes investment in European Directories. Underlying operating businesses performing well
Real Estate	Represents property and JV investments/loans. Includes investments in Spirit Finance, with further impairment / equity losses taken
Debt investment entities	Largely relates to holding in Diversified CMBS Investments Inc. Underlying investments are commercial mortgage-backed securities that are highly rated, some impairment charges taken
Finance, investment, funds management and exchanges	Significant investments include Macquarie AirFinance (GATX), Macquarie Goodman Japan Limited (J-Rep) and MGPA. Investments in exchange seats including ASX, Korea, Tokyo, Chicago. Underlying businesses operating well. J-Rep impairment / equity losses recognised
Energy and resources	No material concern with carrying value, impairment charges taken
Other Macquarie managed funds	Mainly includes investments that hedge DPS plan liabilities – no exposure to MQG
Macquarie Unlisted managed funds	Includes investments in MAIP, MEIF funds, MIP funds. Underlying businesses performing well. Some impairment / equity losses taken
Macquarie Listed managed funds2	See “Positions in Listed Macquarie-managed funds & fund managers” slide

Macquarie holds investments in Macquarie-managed funds and other investments for strategic reasons. Equity investments above excludes investments Held for Sale (“HFS”). Some investments will become classified as HFS when it is highly probable that the asset will be sold in the subsequent 12 months (31 Mar 09: $209m, 31 Mar 2008: $752m). 2. J-Rep has been disclosed in “Finance, investment, funds management and exchanges” for this purposes of this slide

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Asset impairment methodology
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Impairment consideration required by Accounting Standards at each reporting date when triggered by significant changes in market, economic or legal environment

Asset	Impairment methodology	Impairment methodology
Co-investment in	�	Listed investments: Significant or prolonged decline in market value below carrying value is a trigger for
managed funds & other		impairment review. Where recoverable amount exceeds carrying value, investments are written down to
equity investments		recoverable amount as determined by the higher of:
		— market price, unless verifiable evidence from recent comparable asset sales; and,
		— DCF assessment of value-in-use.
	�	Unlisted investments: Underperformance is a trigger for impairment review. Where recoverable amount
		exceeds carrying value, investments are written down to recoverable amount as determined by the higher of:
		— underlying asset values; and,
		— DCF assessment of value-in-use.
Loans	�	Loans in arrears individually assessed for impairment.
	�	Mortgages portfolio includes:
		— Australia: arrears1 = 1.3%, most loans are fully mortgage insured
		— US: arrears1 = 4.6%, majority of loans where LVR > 80% are mortgage insured
		— Canada: most loans are fully insured with underlying government support
	�	Collective provision maintained on total loan portfolio without specific provisions
Collateralised Debt &	�	Assessed individually for impairment based on holding the securities to maturity:
Loan Obligations,		— Asset Backed Securities (backed by pools of sub-prime and mid-prime mortgages): carrying value $US129m2
Asset Backed		(53% of par value); no defaults to date
Securities		— CDO/CLOs: carrying value $US169m2 (71% of par value); less than 1% in default

Arrears based on 90+ days past due at 31 Mar 09. 2. As at 31 Mar 09

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Positions in Listed Macquarie-managed funds &
fund managers
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Carried below reported NAV, supported by DCF assessment of
value-in-use
(57)
19
76
J-REP co Ltd (TSE listed real estate funds manager)
(6)
24
30
Macquarie Central Office CR-REIT (KRX listed)
(6)
1
7
Macquarie DDR Trust (MDT)
Carried below reported NAV, supported by DCF assessment of
value-in-use
(57)
29
86
Macquarie International Infrastructure Fund (SGX listed)
Cash; External valuation for buy-back of $A2.39 per unit (in line
with carrying value)
(67)
47
114
Macquarie Media Group
Evidence of recent comparable asset sales (refer to slide 51)
(95)
40
135
Macquarie CountryWide (MCW)
Evidence of recent comparable asset sales (refer to slide 51)
(104)
108
212
Macquarie Office Trust (MOF)
Evidence of recent comparable asset sales (refer to slide 50)
(231)
467
698
Macquarie Infrastructure Group (MIG)
-
15
15
DUET Group (DUE)1
(1,115)
(4)
(2)
(55)
38
(469)
$Am
Unrealised
gain/(loss)
Carried below reported NAV, supported by DCF assessment of
value-in-use
Evidence of recent comparable asset sales (refer to slide 50)
Comments
2,813
18
60
61
194
1,107
$Am
Net
carrying
value2
1,698
14
58
6
232
638
Market
value
$Am
Total Macquarie-managed funds - Listed
Macquarie Leisure Trust (MLE)
Macquarie Korea Infrastructure Fund (KRX listed)
Macquarie Infrastructure Company (NYSE listed)
Macquarie Communications Infrastructure Group (MCG)
Macquarie Airports (MAp)

DUET price as at 30 Mar 09 due to trading halt on 31 Mar 09. 2. Carrying value net of AVS and equity accounted reserves. 3. All values as at 31 Mar 09

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Infrastructure asset values
MAP / MIG carrying values compared to recent transactions
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Date	Asset	Proportionate EV	Transaction metrics
Macquarie Airports	12.7x estimated (historic) EV/EBITDA1 based on MQG equity carrying value
Jan 092	Cairns Airport	$A530m	Approx 14x3 (historic) EV/EBITDA
Dec 08	Mackay Airport	$A208.8m	>25x4 (historic/normalised) EV/EBITDA
Oct 08	Brisbane Airport (12.4%)	$A490m	18.9x (historic) EV/EBITDA
Sep 08	London City Airport (50%)	£468m	25.5x (historic) EV/EBITDA
Sep 08	Chicago Midway Airport8	$US2.5b	>28x (historic normalised) EV/EBITDA
Sep 08	Belfast City Airport	£133m	24x (historic) EV/EBITDA
Date	Asset	Proportionate EV	Transaction metrics
Macquarie Infrastructure Group		14.3% estimated IRR	based on MQG equity carrying value
Jan/Feb 09	Nth American Roads	$US1.5 - $US3b	Approx 11-14% estimated IRR
Dec 08	Westlink M7	$A715m5	12% estimated IRR
Dec 086	Itinere (90.1%)	€7.1b	10-11% estimated IRR
Sep 08	Lusoponte7 (30.6%)	€208m	9.2% IRR
May/Sep 08	Pennsylvania Turnpike9	$US12.8b	10-11% estimated IRR

EBITDA for 12 mths to 31 Mar 09 before specific items 2. SPA signed. Yet to complete. 3. Estimate using airport segment data from Cairns Ports 2008 Annual Report. 4. Estimate using airport segment data from Mackay Ports 2008 Annual Report 5. Based on sale price and Jun 08 debt. 6. Announced in Dec 08. Yet to complete. 7. Sale remains subject to government and lenders’ consent. 8. Purchaser subsequently did not complete acquisition. 9. Subsequently removed from sale

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Real estate transactions
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Transaction flow increasing

Date	Asset	Asset class	Value	Transaction metrics
			(millions)
Macquarie	Office Trust	9.5% capitalisation rate based on MQG equity carrying value
Macquarie	CountryWide Trust	9.0% capitalisation rate based on MQG equity carrying value
Apr 09	Ipswich City Square, Ipswich, QLD	CBD shopping	$A45	6.7% initial yield (fully leased)1
		complex
Apr 09	ATO Northbridge, Perth Fringe, WA (MOF Asset)	Office	$A95	8.7% estimated market yield1
Mar 09	5 MCW assets (2 freestanding, 3 shopping centres)	Retail	$A93	7.7% average initial yield
Mar 09	2 free standing supermarkets (Qld, Vic), MCW assets	Retail	$A13	7.2% average initial yield
Mar 09	TAC Building, Geelong, VIC	Office	$A75	Estimated market value 8.0%2
Mar 09	Mawson Lake Town Centre, SA	Retail	$A26	7.5% initial yield3
Feb 09	1 Bligh St, Sydney, NSW	CBD office	$A60 (33%)	6.5% estimated yield on completion4(33% interest in
		development		development site)
Feb 09	Centro Ringwood, VIC	Sub-regional	$A39	9.0% initial yield1
		shopping centre
Feb 09	Energex, Newstead, QLD	Office	$A173	7.7% initial yield1
Jan 09	SX2, 111 Bourke St, Melbourne, VIC	CBD Office	$A121	6.1% initial yield (passing), 6.9% market yield2
Jan 09	Golden Grove Village SC, SA	Sub-regional	$A100	7.7% initial yield (fully leased)1
		shopping centre
Dec 08	44 Martin Place, Sydney, NSW	CBD Office	$A81	7.4% initial yield (passing)5
Dec 08	Wachovia Financial Center, Miami, FL, US (MOF	CBD Office	$US183	6.9% market yield
	asset)

Jones Lang LaSalle. 2. m3 property. 3. Australian Financial Review (17/3/09). 4. Colliers International Research. 5. Knight Frank valuations

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Asset resilience
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Macquarie Capital Funds’ ten largest businesses[1] have experienced consistent improvement in operating performance
Approx 5%[2] of the debt of all Macquarie Capital Funds’ managed businesses matures in the next 12 mths with 95% of committed debt facilities held at the business level on a non-recourse basis[2]

			1 year	2 year	3 year
		Acquisition	EBITDA	EBITDA	EBITDA
		date	Growth3	CAGR3	CAGR3
Thames Water	Utility (UK)	Dec 06	9%	10%	n/a
APRR	Toll road (France)	Feb 06	3%	8%	n/a
Arqiva4	Communications (UK)	Jan 05	1%	3%	n/a
Sydney Airport	Airport (Australia)	Jun 02	6%	7%	8%
407 ETR	Toll road (Canada)	Apr 02	-1%	7%	8%
Airwave	Communications (UK)	Apr 07	4%	n/a	n/a
European Directories5	Directories (Europe)	Jul 05	7%	9%	n/a
Duquesne Light6	Utilities (US)	May 07	15%	n/a	n/a
Wales & West	Utility (UK)	Jun 05	34%	38%	n/a
Brussels Airport	Airport (Belgium)	Dec 04	1%	7%	9%

Based on proportionate Enterprise Value as at 31 Dec 2008. 2. As at 31 Mar 09. 3. Compound annual growth in EBITDA up to the year ending 31 Mar 09 for Sydney Airport, 407 ETR and Brussels Airport. For all other businesses compound annual growth in EBITDA up to the year ending 31 Dec 08. Figures based on management accounts and/or audited financial statements where available. 4. Arqiva acquired National Grid Wireless in Apr 07. 1 year EBITDA growth figure has been restated to reflect the growth in the combined business from the year ending 31 Dec 07 to the year ending 31 Dec 08 with the 1Q07 figure calculated on a pro-rata basis. 2 year EBITDA CAGR figure provided for Arqiva current as at 30 Jun 08. 5. EBITDA growth has been normalised to remove the impact of acquisitions, if the acquisitions and associated one off costs were included 1 year EBITDA would be -3% and 2 year EBITDA CAGR would be 5%. 6. EBITDA excludes mark-to-market movement of energy derivative contracts

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Loan portfolio
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	30.9 1.2 0.8 3.6 1.7 1.2 1.5 3.4 6.0 2.9 1.8 1.2 3.7 1.9 Sep 08 $Ab Net carrying Value Impairment provisions coverage Diversified secured corporate lending (including BrisConnections bridge loan), subject to regular recoverability review. Secured bydiverse range of corporate assets and other securities 1.1% 1.4 CAF3 Lending 2.6% 2.9% 1.7% 12.8% 1.4% 12.1% 0.8% 0.6% 5.6% 0.4% 1.8% <0.1% - Mar 09 %1 Loans secured against real estate, subject to regular independent valuations. Large impairment provisions 1.4 Real estate loans Fully secured loans with contractual maturity no greater than 12 months. Secured by residential mortgages, car loans and other receivables 0.4 Debt markets warehouses Diversified loan portfolio primarily to resources sector that are secured by the underlying assets. Secured by gold, base metals and oil resources and supported by price hedging 1.5 Commodity loans Secured by underlying leased assets (motor vehicles and specialised equipment), diversified portfolio by geography and securityasset class 3.7 Leasing business Conservative LVR set on individual listed equity security; full recourse to listed equity securities 0.3 Margin loans Retail loans to invest in various investment funds. Secured by investments with value protected by capital guarantees at maturity. Underlying assets primarily include direct and indirect equities & cash 5.2 Structured investment loans Secured relationship managed loan portfolio of $A2.9b to professional & financial services firms, real estate industry clients, insurance premium funding and other small business clients. Secured largely by real estate, working capital and business cash flows and credit insurance; Other consumer lending of $A0.4b including credit cards 3.3 Banking loans 25.3 0.9 1.9 1.3 4.0 - Mar 09 $Ab �$A0.5b aircraft operating lease portfolio to single counterparty with average aircraft life <3 years, all aircraft residual values insured. �$A0.2b on deposit with financial institutions as collateral for trading positions. �$A0.2b other secured lending, subject to regular recoverability review. Secured by diverse range of corporate assets and other securities. Some impairmentprovisions raised Secured by residential mortgages and supported by mortgage insurance �Aust: arrears2 = 1.3%, most loans are fully mortgage insured �US: arrears2 = 4.6%, majority of loans where LVR > 80% are mortgage insured �Canada: most loans are fully insured with underlying government support Other lending Total loan assets4 Mortgages - Australia - US - Canada - Italy Loan category	30.9 1.2 0.8 3.6 1.7 1.2 1.5 3.4 6.0 2.9 1.8 1.2 3.7 1.9 Sep 08 $Ab Net carrying Value Impairment provisions coverage Diversified secured corporate lending (including BrisConnections bridge loan), subject to regular recoverability review. Secured bydiverse range of corporate assets and other securities 1.1% 1.4 CAF3 Lending 2.6% 2.9% 1.7% 12.8% 1.4% 12.1% 0.8% 0.6% 5.6% 0.4% 1.8% <0.1% - Mar 09 %1 Loans secured against real estate, subject to regular independent valuations. Large impairment provisions 1.4 Real estate loans Fully secured loans with contractual maturity no greater than 12 months. Secured by residential mortgages, car loans and other receivables 0.4 Debt markets warehouses Diversified loan portfolio primarily to resources sector that are secured by the underlying assets. Secured by gold, base metals and oil resources and supported by price hedging 1.5 Commodity loans Secured by underlying leased assets (motor vehicles and specialised equipment), diversified portfolio by geography and securityasset class 3.7 Leasing business Conservative LVR set on individual listed equity security; full recourse to listed equity securities 0.3 Margin loans Retail loans to invest in various investment funds. Secured by investments with value protected by capital guarantees at maturity. Underlying assets primarily include direct and indirect equities & cash 5.2 Structured investment loans Secured relationship managed loan portfolio of $A2.9b to professional & financial services firms, real estate industry clients, insurance premium funding and other small business clients. Secured largely by real estate, working capital and business cash flows and credit insurance; Other consumer lending of $A0.4b including credit cards 3.3 Banking loans 25.3 0.9 1.9 1.3 4.0 - Mar 09 $Ab �$A0.5b aircraft operating lease portfolio to single counterparty with average aircraft life <3 years, all aircraft residual values insured. �$A0.2b on deposit with financial institutions as collateral for trading positions. �$A0.2b other secured lending, subject to regular recoverability review. Secured by diverse range of corporate assets and other securities. Some impairmentprovisions raised Secured by residential mortgages and supported by mortgage insurance �Aust: arrears2 = 1.3%, most loans are fully mortgage insured �US: arrears2 = 4.6%, majority of loans where LVR > 80% are mortgage insured �Canada: most loans are fully insured with underlying government support Other lending Total loan assets4 Mortgages - Australia - US - Canada - Italy Loan category
	Net carrying Value	Impairment provisions coverage
	Sep 08 $Ab Mar 09 $Ab Loan category	Mar 09 %1
	1.8 1.2 3.7 1.9 1.9 1.3 4.0 - Mortgages - Australia - US - Canada - Italy	0.4% 1.8% <0.1% -
	2.9 0.3 Margin loans	5.6%
	6.0 5.2 Structured investment loans	0.6%
	3.4 3.3 Banking loans	0.8%
	1.5 1.4 Real estate loans	12.1%
	1.2 0.4 Debt markets warehouses	1.4%
	1.7 1.5 Commodity loans	12.8%
	3.6 3.7 Leasing business	1.7%
	0.8 1.4 CAF3 Lending	1.1%
	1.2 0.9 Other lending	2.9%
	30.9 25.3 Total loan assets4	2.6%

Coverage % based on total collective & specific provisions divided by gross loan value at 31 Mar 09. 2. Arrears based on 90+ days past due at 31 Mar 09 across total mortgages portfolios. 3. Macquarie’s Corporate and Asset Finance Division (CAF). 4. Per the funded balance sheet (refer slide 57), including loan assets held at amortised cost, loan assets held at fair value through profit or loss and operating lease assets held as other assets

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FINANCIAL MANAGEMENT

Greg Ward – Chief Financial Officer

Macquarie Group Limited

Result Announcement for the full year ended 31 March 2009 1 May 2009 – Presentation to Investors and Analysts

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Highlights
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Continue to strengthen the balance sheet by extending the Group’s term funding profile
Term assets more than covered by term funding
Deposits up 42% from Mar 08 to $A18.8b at Mar 09
Retail deposits up 103% from Mar 08 to $A13.4b at Mar 09
Reduced reliance on short-term wholesale funding markets
Cash and liquid assets represent over 40% of the Group’s funded balance sheet
97% of liquid assets repo eligible with central banks, remaining securities short dated
As with other global financial institutions, access to non-government guarantee funding markets remains exceptionally challenging
$A3.1b buffer of capital in excess of the Group’s minimum capital requirements

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Funded balance sheet reconciliation
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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

	Mar 09	Mar 08
	$Ab	$Ab
Total assets per Statutory Balance Sheet	149.1	167.2
Deductions:
Self funded trading assets	(10.5)	(28.9)
Derivative revaluation accounting gross ups	(26.1)	(18.6)
Life investment contracts and segregated assets	(6.9)	(8.3)
Broker settlement balances	(5.5)	(5.8)
Working capital assets	(5.1)	(6.7)
Less non-recourse funded assets:
Securitised assets and non-recourse warehouses	(20.4)	(25.2)
Total assets per Funded Balance Sheet	74.6	73.7

Refer to Appendix A for further details on these reconciling items

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Funded balance sheet
31 March 2009
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	Mar 09 $Ab	Mar 08 $Ab
Negotiable certificates of deposit Wholesale issued paper: *Funding sources*	4.7	12.2
Commercial paper	3.0	7.6
Net trade creditors	0.4	0.9
Bonds Secured funding Structured notes	16.9 6.6 4.0	8.1 6.0 8.2
Other bank loans	0.7	0.3
Senior credit facility1	7.4	4.9
Deposits	18.8	13.2
Total funding sources Equity and hybrids3 Loan capital2	74.6 9.6 2.5	2.3 73.7 10.0
*Funded assets*
Cash and liquid assets	30.3	20.8
Loan assets > 1 year Loan assets < 1 year Net trading assets	19.5 5.8 9.1	17.6 12.2 12.5
Assets held for sale	0.2	0.8
Debt investment securities	1.2	2.6
Co-investment in Macquarie-managed funds
and equity investments	7.2	6.3
Property, plant & equipment and intangibles	1.3	0.9
Total funded assets	74.6	73.7

Well diversified funding sources
Cash and liquid assets significantly exceed short-term wholesale issued paper
Funded assets, excluding cash and liquid assets, reduced by $A8.6b since Mar 08
Size of MGL Senior credit facility reduced by $A1.0b on early unwind of undrawn standby facility
MBL deposits and wholesale funding eligible for Australian government guarantee

The Senior Credit Facility is a $A7.8b term facility of which $A0.4b remains undrawn. 2. This includes Convertible Preference Securities. 3. Equity includes ordinary capital and Macquarie Income Securities of $A0.4b, and Hybrids include the Macquarie Income Preferred Securities of $A0.4b

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Term funding profile
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� Excluding equity, the weighted average term to maturity of term funding increased from 3.5 years at Mar 08 to 3.7 years at Mar 09

$Ab Structured notes Secured funding Bonds Other bank loans 14 Senior credit facility - drawn Senior credit facility - undrawn Other undrawn credit facilities Loan capital 12 Hybrid Equity 10 8 6 4 2 0 1-2 yrs 2-3 yrs 3-4 yrs 4-5 yrs >5 yrs

At 31 Mar 09. 1. Undrawn term facilities for the Group include $A0.4b undrawn of the Senior Credit Facility and $A0.6b of undrawn warehouse facilities

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Strong retail deposit growth
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Since Aug 07, Macquarie has been successful in pursuing its strategy of diversifying its funding sources through growing its deposit base
Retail deposits up 103% from Mar 08 to $A13.4b at Mar 09

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$Ab
20
15
10
5
0
Mar-06 Sep-06 Mar-07 Sep-07 Mar-08 Sep-08 Mar-09
Retail Corporate/wholesale
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Regulatory capital strong
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Macquarie Group Limited – Regulatory Capital Position (Mar 09)

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Banking Group
Minimum Regulatory Capital
Non-Banking Group
Requirement
Capital Surplus
Buffer for Volatility, Growth and
Strategic Flexibility
Regulatory Capital Position
as at 31 March 2009
0 1 2 3 4 5 6 7 8 9 10 11
$Ab
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$A3.1b buffer of capital in excess of the Group’s minimum capital requirements
MBL Banking Group capital ratios: Tier 1 - 11.4%; Total Capital - 14.4%

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Changes in capital position since
30 September 2008
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Group (MGL)

Banking Group (MBL)

Capital surplus remained strong at $A3.1b ($A3.3b at Sep 08)
- Tier 1 ratio up: 11.4% at Mar 09 from 11.0% at Sep 08
Capital supply flat:
Growth through retained earnings and DRP offset by MIPS refinancing
Capital requirement of the Bank increased since Sep 08:
- Acquisition of Constellation Energy
Capital requirement up slightly:
- Impact of FX
Acquisition of Constellation Energy
Impact of FX
Offset by reduced Non-Banking Group equity commitments and write-downs
Acquisition of leasing assets from Non-Banking Group
Increased regulatory deductions associated with credit market conditions
Partly offset by reduction in underlying RWA, e.g. sale of Italian Mortgages and Margin Lending portfolios
Balanced by recapitalisation from MGL to the Bank of $A0.6b

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APPENDIX A Additional information – Funding

Macquarie Group Limited

Result Announcement for the full year ended 31 March 2009 1 May 2009 – Presentation to Investors and Analysts

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Group funding structure
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MGL and MBL are the Group’s two primary external funding vehicles which have separate and distinct funding, capital and liquidity management arrangements
MBL provides funding to the Bank Group and intra-group funding to MGL
MGL provides funding predominantly to the Non-Bank Group

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Debt Equity
MACQUARIE GROUP LIMITED (MGL)
Debt & Equity Debt & Equity
Intra-group Loan
Debt & MACQUARIE BANK
Hybrid LIMITED (MBL)
Non-Banking Group
Equity
Banking Group
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Funding for the Non-Bank Group
31 March 2009
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	Mar 09 $Ab	Mar 08 $Ab	�	Non-Banking Group is predominantly term fun	Non-Banking Group is predominantly term fun	ded
*Funding sources*			�	Term funding beyond 1 year (excluding equity) ha
MBL intra-group loan to MGL	3.8	8.8		a weighted average term to maturity of 2.9 years
Net trade creditors	0.2	0.7
Structured notes	0.3	-	�	Size of Senior credit facility reduced by $A1.0b on
Secured funding	0.8	1.1		early unwind of the undrawn standby facility
Deposits Other bank loans Loan capital1 Senior credit facility	0.6 7.4 0.2 0.3	0.2 0.3 - 4.9	�	MBL intra-group loan has been amortised to $ with $A1.9b of the remainder to be termed out years maturing in 2012		3.8b for
Equity	3.2	3.6
*Funded assets* Total funding sources	16.8	19.6		Term funding (drawn and undrawn2) maturing
Non Banking Group deposit with MBL Cash and liquid assets	2.5 4.8	5.8 2.1		beyond 1 year (including equity)3 7 $Ab
Net trading assets Loan assets > 1 year Loan assets < 1 year	1.0 1.6 0.2	0.7 3.8 1.0		5 6 Equity Loan capital Debt
Debt investment securities Assets held for sale	0.6 0.1	0.8 0.8		Total = $A12.8b 3 4
Co-investment in Macquarie-managed funds and equity investments Total funded assets Property,plant & equipment and intangibles	5.1 16.8 0.9	3.9 19.6 0.7		0 1 2 1-2 yrs 2-3 yrs 3-4 yrs 4-5 yrs	> 5yrs

Non-Banking Group is predominantly term funded
Term funding beyond 1 year (excluding equity) has a weighted average term to maturity of 2.9 years
Size of Senior credit facility reduced by $A1.0b on early unwind of the undrawn standby facility
MBL intra-group loan has been amortised to $3.8b with $A1.9b of the remainder to be termed out for 3 years maturing in 2012
This includes Convertible Preference Securities. 2. Undrawn term facilities for the Non-Bank include $A0.4b undrawn on the Senior Credit Facility. 3. MBL intra-group loan to MGL has been profiled in this chart based on the contractual maturity at Mar 09

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Funding for the Bank Group
31 March 2009
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*Funding sources*	Mar 09 $Ab	Mar 08 $Ab	�	Bank balance sheet remains very liquid, well capitalised and with a diversity of funding sources	Bank balance sheet remains very liquid, well capitalised and with a diversity of funding sources	Bank balance sheet remains very liquid, well capitalised and with a diversity of funding sources
Net trade creditors Negotiable certificates of deposit Commercial paper	0.2 3.0 4.7	0.2 12.2 7.6	�	Term funding beyond 1 year (excluding equity) ha a weighted average term to maturity of 4.1 years
Bonds Structured notes Secured funding Other bank loans	0.4 16.9 5.8 3.7	8.1 6.0 7.1 -	�	Macquarie Bank Limited as an authorised dep taking institution is eligible for the deposit and wholesale funding guarantees provided by the		osit-
Deposits	18.6	13.0		Australian Government.
Loan capital	1.9	2.3
Equityand hybrids1	6.4	6.4
Cash and liquid assets *Funded assets* Total funding sources	25.5 61.6	18.7 62.9		Term funding (drawn and undrawn2) maturing beyond 1 year (including equity) 10 $Ab
Loan assets > 1 year Assets held for sale Debt investment securities Net trading assets Loan assets < 1 year	0.6 0.1 17.9 5.6 8.1	13.8 - 1.9 11.4 11.5		Total = $A28.8b 5 6 7 8 9 Equity Hybrids Loan capital Debt
MBL intra-group loan to MGL	3.8	8.8		4
Non-Banking Group deposit with MBL	(2.5)	(5.8)		3
Co-investment in Macquarie-managed funds and equity investments	2.1	2.4		1 2
Property, plant & equipment and intangibles	0.4	0.2		0
Total funded assets	61.6	62.9		1-2 yrs 2-3 yrs 3-4 yrs 4-5 yrs	>5 yrs

Term funding beyond 1 year (excluding equity) has a weighted average term to maturity of 4.1 years
Macquarie Bank Limited as an authorised deposittaking institution is eligible for the deposit and wholesale funding guarantees provided by the Australian Government.
Equity includes ordinary capital and Macquarie Income Securities of $A0.4b. Hybrids include the Macquarie Income Preferred Securities of $A0.4b. 2. Undrawn term facilities for the Bank include $A0.6b on undrawn warehouse facilities

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Explanation of Funded Balance Sheet
Reconciling Items
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Self funded trading assets: There are a number of entries on the balance sheet that arise from the normal course of trading activity we conduct with our clients. They typically represent both sides of a transaction. The entries off-set each other as both the bought and sold positions are recorded separately. Where these entries are matched, they do not require funding.
Derivative re-valuation accounting gross ups: Macquarie’s derivative activities are client driven with client positions hedged by off-setting positions. The derivatives are largely matched and this adjustment reflects that the matched positions do not require funding.
Life investment contracts and other segregated assets: These represent the assets and liabilities that are recognised where we have products such as investment-linked policy contracts. The policy (contract) liability will be matched by assets held to the same amount and hence do not require funding.
Broker settlement balances: At any particular time our broking business will have outstanding trades to settle with other brokers. These amounts (payables) can be offset in terms of funding by amounts that we are owed at the same time by brokers on other trades (receivables).
Short term working capital assets: As with the broker settlement balances above, Macquarie through its day-to-day operations generates working capital assets (e.g. receivables and prepayments) and working capital liabilities (e.g. creditors and accruals) that produce a ‘net balance’ that requires funding rather than the gross balance.
Securitised assets and non-recourse warehouses: Some lending assets (mortgages and leasing) are commonly sold down into external securitisation entities or transferred to external funding warehouses. As a consequence they are non-recourse to Macquarie and are funded by third parties rather than Macquarie.

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APPENDIX B Additional information – Capital

Macquarie Group Limited

Result Announcement for the full year ended 31 March 2009 1 May 2009 – Presentation to Investors and Analysts

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Macquarie Group regulatory capital
Surplus calculation
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	$Am
Macquarie Group eligible capital:
Banking Group Gross Tier 1 capital	6,547
Non-Bank eligible capital	3,827
Elimination of intra-groupholdings of capital1	(127)
Eligible capital	(a) 10,247
Macquarie Group capital requirement:
Banking Group contribution
Risk-weighted assets (excluding intra-group exposures)2	36,765
Internal minimum Tier 1 ratio (Bank)	7%
Capital required to cover risk-weighted assets	2,574
Tier 1 deductions(excludingintra-groupexposures)3	2,136
Banking Group contribution	4,710

Non-Banking Group contribution	2,401
Capital requirement	(b) 7,111

Macquarie Group regulatory capital surplus	(a)-(b) 3,136

In calculating Macquarie Group eligible capital, intra-group holdings of capital instruments are eliminated. 2. In calculating the Bank’s contribution to Group capital requirement, RWA associated with exposures to the Non-Bank are eliminated ($A710m as at Mar 09). 3. In calculating the Bank’s contribution to Group capital requirement, Tier 1 deductions associated with intra-group exposures are eliminated ($A127m as at Mar 09)

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Macquarie Group regulatory capital
Banking Group contribution
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	Risk weighted	Tier 1	Capital
	assets $Am	Deductions1	Requirement2 $Am
		$Am
Credit and equity risk
On balance sheet	19,284		1,350
Off balance sheet	8,810		617
Credit and equity risk subtotal	28,094		1,967
Market risk	2,082		146
Operational risk	5,761		403
Other	828	2,136	2,195
Contribution to Group capital calculation	36,765	2,136	4,710
MBL intra-group loan to MGL	7103
Banking Group standalone risk-weighted assets	37,475

In calculating the Bank’s contribution to Group capital requirement, Tier 1 deductions associated with intra-group exposures are eliminated ($A127m as at Mar 09). 2. The capital requirement is calculated as the capital required for RWA, at the internal minimum Tier 1 ratio of the Banking Group (7%), plus Tier 1 deductions. 3. Intra-group loan eliminated for calculation of Group capital requirement

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Macquarie Group regulatory capital
Non-Banking Group framework
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APRA has specified a regulatory capital framework for MGL
A dollar capital surplus is produced; no capital ratio calculation is specified
APRA has approved Macquarie’s Economic Capital Adequacy Model (ECAM) for use in calculating the regulatory capital requirement of the Non-Banking Group
Any significant changes to the ECAM must be approved by the MGL Board and notified to APRA within 14 days
The ECAM is based on similar principles and models as the Basel II regulatory capital framework for Banks, with both calculating capital at a one year 99.9% confidence level:

Risk1		Basel II		ECAM
Credit	�	Capital requirement determined by Basel II formula,	�	Capital requirement determined by Basel II formula, but
		with some parameters specified by the regulator (e.g.		with internal estimates of some parameters
		loss given default)
Equity	�	Simple risk-weight approach or deductions. Tier 1	�	Extension of Basel II credit model to cover equity
		capital requirement between 24% and 50% of face		exposures. Capital requirement between 32% and 86% of
		value2		face value; average 47%
Market	�	3 times 10 day 99% Value at Risk (VaR) plus a	�	Scenario-based approach. Greater capital requirement than
		specific risk charge		under regulatory regime
Operational	�	Basel II Advanced Measurement Approach	�	Basel II Advanced Measurement Approach

The ECAM also covers risk on assets held as part of business operations, e.g. fixed assets, goodwill, intangible assets, capitalised expenses and certain minority stakes in associated companies or stakes in joint ventures as well as non-traded interest rate risks. 2. Assuming an 8% Tier 1 ratio, the 300% and 400% risk weightings for equity exposures under Basel II equate to a capital requirement of 24% or 32%. Any deductions required for equity exposures are 50/50 Tier 1 and Tier 2, hence a 50% Tier 1 capital requirement

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Macquarie Group regulatory capital
Non-Banking Group contribution
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2.5
Non-Banking Group deposits with MBL
-
1.0
Net tradingassets
4.3
Broker settlement balances
Funded assets
2,401
NON-BANKING GROUP CAPITAL REQUIREMENT
(216)
Off balance sheet exposures,operational,market & other risk and diversification offset3
26.7
TOTAL NON-BANKING GROUP ASSETS
9.9
Total self-funded and non-recourse assets
3.1
Workingcapital assets
2.5
Self funded trading assets
Self-funded and non-recourse assets
16.8
0.9
2.4
2.7
0.6
0.1
1.8
4.8
$Ab
Assets
2,617
Total funded assets
250%
183
Property, plant & equipment and intangibles2
617%
1,173
Co-investment in Macquarie-managed funds and equity investments (unlisted)
441%
947
Co-investment in Macquarie-managed funds and equity investments (listed)
154%
73
Debt investment securities
343%
39
Assets held for sale
129%
186
Loan assets1
4%
16
Cash and liquid securities
$Am
Equivalent
Risk Weight
Capital
Requirement

Includes leases. 2. Intangibles relating to the acquisition of Orion Financial Inc are supported 100% by exchangeable shares. These exchangeable shares have not been included in eligible regulatory capital. 3. Includes capital associated with trading assets (e.g. market risk capital)

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APPENDIX C Additional information – Outlook operating groups

Macquarie Group Limited

Result Announcement for the full year ended 31 March 2009 1 May 2009 – Presentation to Investors and Analysts

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Outlook operating groups
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Macquarie Capital

Reasonable pipeline, though difficult markets reducing the number of successful transactions and increasing time to completion
Continue to examine opportunities to selectively grow the business (through acquisition or organically)
Expect growth in medium term but short-term conditions remain challenging
We expect the Macquarie Capital Funds business to remain resilient, with continued focus on growing unlisted funds under management

Treasury and Commodities Group

Expect FY10 result to be up on this year’s result
Expect continued rationalisation of competitors
Improved margins to continue
Markets to remain volatile and less liquid
Established businesses to pursue expansion opportunities through recruitment and acquisition
Significant opportunities for new, growth business for e.g. Environmental Financial Products and Credit Trading
Metals & Energy Capital expected to benefit from significantly improved lending and investing conditions

Macquarie Securities Group

Expect conditions in global equity markets to remain challenging in the year ahead

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Outlook operating groups
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Banking and Financial Services Group

Consolidation of current businesses to maintain market leading positions
Continue organic growth of adviser numbers and look for acquisition opportunities
Leverage recent launch of premium platform service in the UK
Continue development of current offshore opportunities and partnerships where we can offer differentiated wealth management solutions
Increased focus on risk management processes
Expect FY10 to be up on FY09

Macquarie Funds Group

Expect continued investment in business
Strong relative investment performance across numerous products should enable organic growth as investor sentiment improves
Market recovery should result in higher profit for MFG because it is predominantly a fixed-cost business
Will use Macquarie’s strong capital position to seek to gain global scale through acquisitions

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Outlook operating groups
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Corporate and Asset Finance Division

Expect FY10 result overall to be up on FY09
Ongoing review and continued tightening of financing guidelines
Opportunities to acquire assets/businesses/customers
Result will be subject to economic conditions globally

Real Estate Banking Division

Continued credit market dislocation makes short to medium term outlook for the real estate sector particularly challenging
Commercial real estate markets are expected to see further rent and price reductions in 2009
Positive signs of recovery in the Australian first home buyer residential market, buoyed by fiscal stimulus to assist this sector

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APPENDIX E Glossary

Macquarie Group Limited

Result Announcement for the full year ended 31 March 2009 1 May 2009 – Presentation to Investors and Analysts

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Glossary
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$A	Australian Dollar
$C	Canadian Dollar
$S	Singapore Dollar
$US	United States Dollar
£	Great Britain Pound
¥	Japanese Yen
€	Euro
1H	First Half
1H09	Half year ended 30 September 2008
2H09 2H	Half year ended 31 March 2009 Second Half
ABS	Asset Backed Securities
AGM	Annual General Meeting
ANZ	Australia and New Zealand Bank
APRA	Australian Prudential Regulatory Authority
ASX	Australian Securities Exchange
AUM	Assets Under Management
BFS	Banking and Financial Services
CAGR	Compound Annual Growth Rate
CBD	Central Business District

CDO	Collatoralised Debt Obligation
CEO	Chief Executive Officer
CLO	Collatoralised Loan Obligation
CMBS	Commercial Mortgage-Backed Securities
CMT	Cash Management Trust
CPS	Convertible Preference Securities
DCF	Discounted Cash Flows
DPS	Dividend Per Share
DRP	Dividend Reinvestment Plan
DUET/DUE	Diversified Utility and Energy Trusts
EBITDA	Earnings before Interest, Tax, Depreciation and
	Amortisation
ECAM	Economic Capital Adequacy Model
ECM	Equity Capital Markets
ED	Executive Director
EMD	Energy Markets Division
EMG	Equity Markets Group
EPS	Earnings Per Share
EUM	Equity Under Management
FUA	Funds Under Administration
FUM	Funds Under Management

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Glossary
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FX	Foreign Exchange
FY	Full Year
IPO	Initial Public Offering
IRR	Internal Rate of Return
JV	Joint Venture
KRX	Korea Exchange
LVR	Loan to Value Ratio
M&A	Mergers and Acquisitions
MacCap	Macquarie Capital
MAG	Macquarie Airports Group
MAP/MAp	Macquarie Airports
MBL	Macquarie Bank Limited
MCG	Macquarie Communications Infrastructure Group
MCW	Macquarie CountryWide Trust
MDT	Macquarie DDR Trust
MEC	Metals and Energy Capital
MEIF	Macquarie European Infrastructure Fund
MFG	Macquarie Funds Group
MGL	Macquarie Group Limited
MGPA	Macquarie Global Property Advisers

MIC	Macquarie Infrastructure Company
MIG	Macquarie Infrastructure Group
MIIF	Macquarie International Infrastructure Group
MIP	Macquarie Infrastructure Partners
MIPS	Macquarie Income Preferred Securities
MIS	Macquarie Income Securities
MKOF	Macquarie Korea Opportunities Fund
MLE	Macquarie Leisure Trust Group
MMG	Macquarie Media Group
MOF	Macquarie Office Trust
MQG	Macquarie Group Limited (ASX listed)
MSCI	Morgan Stanley Capital International
Mvt	Movement
MYOB	Mind Your Own Business Accounting Software
No.	Number
NPAT	Net Profit After Tax
NYSE	New York Stock Exchange
OTC	Over the Counter
P&L	Profit and Loss
pcp	Prior Corresponding Period

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Versus
vs
United Kingdom
UK
United States of America
US/USA
CBOE Volatility Index
VIX
Volume Weighted Average Price
VWAP
Tokyo Stock Exchange
TSE
Telecommunications, Media, Entertainment and
Technology
TMET
Treasuries over Euro Dollar Spread
TED Spread
Treasury and Commodities Group
TCG
Small and Medium Enterprise
SME
Société D'investissement à Capital Variable
SICAV
Singapore Exchange
SGX
Standard and Poor's
S&P
Risk Weighted Assets
RWA
Return on Equity
ROE
Real Estate Investment Trust
REIT
Royal Bank of Scotland
RBS

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Macquarie Group Limited Result Announcement for the full year ended 31 March 2009 1 May 2009 – Presentation to Investors and Analysts

AI assistant

Macquarie Group Limited — Earnings Release 2009

10518_rns_2009-04-30_5c2f3e60-1fb4-4398-8f2a-529506973cdf.pdf

Macquarie Group Limited

Disclaimer

2. HIGHLIGHTS OF RESULT

Macquarie Group Limited

Listed security market prices vs asset market values

Market conditions

Market conditions

Activity

Activity

FIG

Market conditions

Activity

Funds Management Market conditions

Activity

Major fund acquisitions

Funds launched

Resources

Market conditions

Real Estate Market conditions

Industrials

Market conditions

Activity

Activity

Funds management

Wholesale

Retail

Market conditions[2]

Market conditions[2]

Activity

Activity

Real Estate Banking

Market conditions

Market conditions

Activity

Activity

Private Wealth/Direct

Intermediary

Funds Management

Balance Sheet

Market conditions

Market conditions

Market conditions

Market conditions

Activity

Activity

Activity

Activity

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

Businesses/activities exited:

Businesses/activities exited:

Businesses/activities entered include:

Businesses/activities entered include:

2004

2008

2008

2009

Cash

Derivatives

Delta 1

Australia

International

Australia

United States

United Kingdom

International

Banking and Financial Services

Australia

Offshore

2. RESULT ANALYSIS AND FINANCIAL MANAGEMENT

Macquarie Group Limited

� Expenses up 30%

� Net interest income growth:

� Wrap FUA down 22% from Mar 08 to $A17.5b

� Approx $A0.5b (60%) of the net increase in equity investments relates to FX movements

Transaction flow increasing

FINANCIAL MANAGEMENT

Macquarie Group Limited

Macquarie Group Limited Earnings Release 2009