Macquarie : 2024 Operational briefing presentation

2024 Operational Briefing

Macquarie Group Limited

13 February 2024

Disclaimer

The material in this presentation has been prepared by Macquarie Group Limited ABN 94 122 169 279 ("MGL") and is general background information about Macquarie's ("MGL and its subsidiaries") activities current as at the date of this presentation. This information is given in summary form and does not purport to be complete. The material contained in this presentation may include information derived from publicly available sources that have not been independently verified. Information in this presentation should not be considered as advice or a recommendation to investors or potential investors in relation to holding, purchasing or selling securities or other financial products or instruments and does not take into account your particular investment objectives, financial situation or needs. Before acting on any information you should consider the appropriateness of the information having regard to these matters, any relevant offer document and in particular, you should seek independent financial advice. No representation or warranty is made as to the accuracy, completeness or reliability of the information. All securities and financial product or instrument transactions involve risks, which include (among others) the risk of adverse or unanticipated market, financial or political developments and, in international transactions, currency risk.

This presentation may contain forward looking statements - that is, statements related to future, not past, events or other matters - including, without limitation, statements regarding our intent, belief or current expectations with respect to Macquarie's businesses and operations, market conditions, results of operation and financial condition, capital adequacy, provisions for impairments and risk management practices. Readers are cautioned not to place undue reliance on these forward looking statements. Macquarie does not undertake any obligation to publicly release the result of any revisions to these forward looking statements or to otherwise update any forward looking statements, whether as a result of new information, future events or otherwise, after the date of this presentation. Actual results may vary in a materially positive or negative manner. Forward looking statements and hypothetical examples are subject to uncertainty and contingencies outside Macquarie's control. Past performance is not a reliable indication of future performance.

Unless otherwise specified all information is at 31 December 2023.

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

Numbers are subject to rounding and may not fully reconcile.

Other than Macquarie Bank Limited ABN 46 008 583 542 ("MBL"), any Macquarie group entity noted in this presentation is not an authorised deposit-taking institution for the purposes of the Banking Act 1959 (Cth). That entity's obligations do not represent deposits or other liabilities of MBL and MBL does not guarantee or otherwise provide assurance in respect of the obligations of that entity. Any investments are subject to investment risk including possible delays in repayment and loss of income and principal invested.

2

Agenda

01	02	03
Introduction	3Q24 Trading	Macquarie in
	Update	Asia

04 05

Banking and	Glossary
Financial
Services

01

Introduction

Sam Dobson

Head of Investor Relations

02

3Q24 Trading Update

Shemara Wikramanayake

Managing Director and

Chief Executive Officer

Introduction3Q24 Trading UpdateMacquarie in AsiaBFSGlossary

	About Macquarie ~45%	~55%
	Annuity-style activities | Net Profit Contribution	Markets-facing activities | Net Profit Contribution

BFSMAM

Banking and Financial Services Macquarie Asset Management

CGM

Commodities and Global Markets

MacCap

Macquarie Capital

● Macquarie's retail banking and financial

services business with BFS deposits1 of

$A135.6b2, loan portfolio3 of $A138.6b2

and funds on platform of $A132.8b2

● $A882.5b4 of assets under management,

investing to deliver positive impact for

everyone

Global business offering capital and financing, risk management, market access, physical execution and logistics solutions to its diverse client base across Commodities, Financial Markets and Asset Finance

Global capability in:

● Advisory and capital raising services,

providing clients with specialist expertise

● Provides a diverse range of personal

banking, wealth management and

business banking products and services to

retail clients, advisers, brokers and

business clients

● Provides investment solutions to clients

across a range of capabilities, including

infrastructure, green investments,

agriculture and natural assets, real estate,

private credit, asset finance, secondaries,

equities, fixed income and multi-asset

solutions

• Capital and financing: provides clients with financing and asset management solutions across the capital structure
• Risk management: helping clients manage exposure to price changes in commodities, currencies, credit and equity markets

• Market access: helping clients access assets and prices via liquidity and electronic markets globally
• Physical execution and logistics: supporting clients with access to physical commodities and facilitating their transport from production to consumption

and flexible capital solutions across a

range of sectors

● Specialist investing across private credit,

private equity, real estate, growth equity,

venture capital and in infrastructure and

energy projects and companies

● Equities brokerage, providing clients with

access to equity research, sales, execution

capabilities and corporate access

CGM's deep expertise and physical presence allow us to optimise how we manage both our clients' risk exposures and trading opportunities we see which are conducted within Macquarie's strong internal risk management framework

1H24 Net Profit Contribution

BFS | ~22%

MAM | ~14%

CGM | ~9%

CGM | ~40%

MacCap | ~15%

Risk Management Group

Legal and Governance Group

Financial Management Group

Corporate Operations Group

An independent and centralised function responsible

Provides a full range of legal and corporate

Responsible for capital, funding, liquidity, tax and strategic

Provides specialist services in technology, operations,

for independent and objective review and challenge,

governance services, including strategic legal and

analysis and advice to support growth of the business.

human resources, workplace, data and transformation,

oversight, monitoring and reporting in relation to

governance advice and risk assessment on corporate

Ensures compliance with financial, regulatory and tax

strategy, operational risk management, business

Macquarie's material risks.

transactions, treasury and funding, insurance,

reporting obligations, as well as maintaining relationships

resilience and global security, and the Macquarie Group

regulatory enquiries and litigation.

with a range of significant external stakeholders.

Foundation.

Note: Where referenced in this document, net profit contribution is management accounting profit before unallocated corporate costs, profit share and income tax. 1. BFS deposits include home loan offset accounts and exclude certain corporate/wholesale deposits. 2. As at 31 Dec 23. 3. The loan portfolio comprises home loans, loans to businesses, car loans and credit cards. 4. As at 31 Dec 23. Private Markets Assets under Management (AUM) includes equity yet to deploy and equity committed to assets but not yet deployed.

© Macquarie Group Limited	6

Introduction

3Q24 Trading Update

Macquarie in Asia

BFS

Glossary

3Q24

Overview

• FY24 year to date (YTD) NPAT substantially down on FY23 YTD which included an exceptional quarterly result in 3Q23, however underlying client franchises were resilient in ongoing uncertain conditions
• Macquarie's annuity-style businesses' (MAM and BFS) combined December 2023 quarter (3Q24) net profit contribution was down on the prior corresponding period (pcp) (3Q23) mainly due to lower asset realisations in green investments in MAM and margin compression along with run off in the car loan portfolio, partially offset by volume growth across home loans and business lending in BFS
• • FY24 YTD net profit contribution substantially down on FY23 YTD primarily due to lower asset realisations in green investments and continued investment in the development of green energy portfolio companies in MAM
• Macquarie's markets-facing businesses' (CGM and Macquarie Capital) combined 3Q24 net profit contribution was substantially down on the pcp primarily due to exceptionally strong results in Commodities including gas and power in the pcp in CGM and lower fee and commission income, partially offset by investment-related income in Macquarie Capital
• • FY24 YTD net profit contribution substantially down on FY23 YTD mainly due to exceptionally strong results in Commodities including gas and power in the pcp in CGM and non-recurrence of material asset realisations and lower fee and commission income, partially offset by higher net interest income from portfolio growth and gains from a small number of investments in Macquarie Capital

© Macquarie Group Limited	7

Introduction

3Q24 Trading Update

Macquarie in Asia

BFS

Glossary

3Q24 Overview

Annuity-style businesses

	Macquarie Asset Management		Banking and Financial Services
~14%	~22%
1H24 contribution1	1H24 contribution1

• AUM2 of $A882.5b at Dec 23, down 1% on Sep 23
• Private Markets: $A347.4b in AUM2, up 1% on Sep 23, primarily driven by fund investments and increase in asset valuations, partially offset by unfavourable foreign exchange movements
• Private Markets: $A210.6b in EUM3, $A6.7b in new equity raised; $A6.0b of equity invested; $A0.1b equity divested in 3Q24; $A35.4b of equity to deploy at Dec 23
• Public Investments: $A535.1b in AUM4, down 2% on Sep 23, primarily driven by net flows and unfavourable foreign exchange movements, partially offset by positive market movements

• BFS deposits5 of $A135.6b at Dec 23, up 3% on Sep 23
• Home loan portfolio of $A117.9b at Dec 23, up 3% on Sep 23
• Funds on platform6 of $A132.8b at Dec 23, up 6% on Sep 23
• Business banking loan portfolio of $A15.5b at Dec 23, up 6% on Sep 23
• Car loans portfolio of $A4.8b at Dec 23, down 8% on Sep 23

• • $A294.9b AUM4 in Fixed income, down 5% on Sep 23
  • $A215.8b AUM4 in Equities, up 1% on Sep 23
  • $A24.4b AUM4 in Alternatives and Multi-Assets, up 2% on Sep 23
• Reached final close of fundraising for Macquarie European Infrastructure Fund 7 (MEIF7), with over €8b of investor commitments
• Reached first close of Macquarie's first energy transition fund, Macquarie Green
  Investment Group Energy Transition Solutions (MGETS) with ~$US1.9b raised. The fund will target the next phase of the energy transition
• Continuing to invest in existing and new green platforms, including a core renewables platform, as MAM Green Investments transitions to a fiduciary business

1. Based on 1H24 net profit contribution from operating groups as reported on 3 Nov 23. Net profit contribution is management accounting profit before unallocated corporate costs, profit share and income tax. 2. Private Markets Assets under Management (AUM) is calculated as the proportional ownership interest in the underlying assets of funds and mandated assets that Macquarie actively manages or advises for the purpose of wealth creation, adjusted to exclude cross-holdings in funds and reflect Macquarie's proportional ownership interest of the fund manager. Private Markets AUM includes equity yet to deploy and equity committed to assets but not yet deployed. 3. Private Markets' total Equity under Management includes market capitalisation at measurement date for listed funds, the sum of original committed capital less capital subsequently returned for unlisted funds and mandates as well as invested capital for managed businesses. 4. As at 31 Dec 23. 5. BFS deposits include home loan offset accounts and exclude certain corporate/wholesale deposits. 6. Funds on platform includes Macquarie Wrap, FUM in relation to institutional relationships and Macquarie Vision (used by Macquarie Private Bank).

© Macquarie Group Limited	8

Introduction

3Q24 Trading Update

Macquarie in Asia

BFS

Glossary

3Q24 Overview

Markets-facing businesses

	Commodities and Global Markets		Macquarie Capital
~49%	~15%
1H24 contribution1	1H24 contribution1

• Commodities contribution was down on the pcp, primarily due to decreased inventory management and trading revenues in North American Gas, Power and Emissions. The result also included a reduced contribution from risk management revenue, primarily in Resources and Gas, Power and Emissions sectors as volatility and price movements stabilised across commodity markets following previous record highs
• Consistent contribution from client risk management, market access and financing activity across the Financial Markets businesses including fixed income, foreign exchange, credit and futures
• Continued positive performance across all industries in Asset Finance with portfolio growth being driven by Advanced Technology and Shipping Finance sectors
• ~9 billion cubic feet of natural gas volume traded across North America daily2
• House of the Year: Oil and Products3, Electricity3, Commodities Research3,4, Commodity Trade Finance4, Derivatives4, Emissions4, Environmental Products4, Natural Gas/LNG4
• Maintained ranking as No.1 Futures Broker on ASX5
• $A6.7b asset finance and loan portfolio6

• 59 transactions valued at $A65b completed globally7, down on pcp
• Investment-relatedincome significantly up on pcp and down on prior period. Fee revenue down on both pcp and prior period, driven by lower M&A fees
• Notable deals:
• • Exclusive financial adviser to United Malt Group Ltd on its ~$A2.1b acquisition by Malteries Soufflet SAS
  • Joint lead manager, underwriter, bookrunner and financial adviser to Treasury Wine Estates Ltd on its ~$US1b acquisition of DAOU Vineyards LLC and associated $A825m equity raising
  • Sole financial adviser to Apax Partners on their acquisition of Bazooka Candy Brands
  • Investment in Mereo Networks, a leading bulk internet service provider offering internet, video content and Internet of Things solutions to multi-dwelling unit properties
  • Investment in BioCatch Ltd, a global leader in behavioural biometrics, leveraging device and behavioural data to protect global organisations against fraud
  • Equity investment in Envest, the fourth largest independent insurance broker and underwriting agency business in Australia
• Private Credit portfolio of over $A20b8, with $A1.5b deployed in 3Q24 through focused investment in credit markets and bespoke financing solutions
• No.1 in Australia for Trading and No.2 in Sales and Research9

1. Based on 1H24 net profit contribution from operating groups as reported on 3 Nov 23. Net profit contribution is management accounting profit before unallocated corporate costs, profit share and income tax. 2. Platts as at 30 Sep 23. 3. Energy Risk Awards 2023. 4. Energy Risk Asia Awards 2023. 5. ASX Futures (SFE) Monthly Report Sep 23. 6. As at 30 Sep 23. 7. Dealogic & IJ Global for Macquarie Group completed M&A, investments, ECM & DCM transactions converted as at the relevant report date. Deal values reflect the full transaction value and not an attributed value. Comparatives are presented as previously reported. 8. Committed portfolio as at 31 Dec 23. 9. Peter Lee Associates 2023 Survey of Australian Institutional Investors.

© Macquarie Group Limited	9

Introduction

3Q24 Trading Update

Macquarie in Asia

BFS

Glossary

Macquarie's global footprint

Total staff1	Americas	EMEA	Asia	Australia2
Staff	Staff	Staff	Staff
20,892
3,260	3,005	4,250	10,377

	CANADA	USA	Orlando	EUROPE
50%	Calgary	Boise	Philadelphia	Amsterdam
Toronto	Boston	San Diego	Braintree
Vancouver	Chicago	San Francisco	Brussels
International staff		Dallas	San Jose	Coventry
	LATIN AMERICA	Houston	Walnut Creek	Dublin
	Mexico City	Jacksonville		Edinburgh
	Santiago	Kansas		Frankfurt
	Sao Paulo	Los Angeles		Geneva
		Minneapolis		Limerick
		Nashville		London
		New York		Luxembourg
				Madrid
				Milan

1. As at 31 Dec 23. Where referenced in this document headcount numbers include staff employed in certain operationally segregated subsidiaries. 2. Includes New Zealand.

Munich	ASIA		AUSTRALIA	NEW ZEALAND
Paris	Bangkok	Manila	Adelaide	Auckland
Prague	Beijing	Mumbai	Brisbane	Wellington
Solihull	Dongguan	Seoul	Canberra
Vienna	Gurugram	Shanghai	Gold Coast
Watford	Hong Kong	Singapore	Manly
Zurich	Hsin-Chu	Taipei	Melbourne
	Jakarta	Tokyo	Newcastle
MIDDLE EAST	Kuala Lumpur		Perth
Dubai			Sydney
SOUTH AFRICA
Johannesburg

© Macquarie Group Limited	10