Slides
Page 1
1© Macquarie Group Limited Macquarie Group, EMEA Investor Tour Day 4, London 13 March 2025
Page 2
2© Macquarie Group Limited Disclaimer This information has been prepared on a strictly confidential basis by Macquarie Group Limited (ABN 94 122 169 279) (“MGL”) and may neither be reproduced in whole nor in part, nor may any of its contents be divulged, to any third party without the prior written consent of MGL. Information in this presentation, including forecast financial information, should not be considered as legal, financial, accounting, tax or other advice, or a recommendation to investors or potential investors in relation to holding, purchasing or selling securities or other financial products or instruments and does not take into account your particular investment objectives, financial situation or needs. Before acting on any information you should consider the appropriateness of the information having regard to these matters, any relevant offer document and in particular, you should seek independent financial advice. All securities and financial product or instrument transactions involve risks, which include (among others) the risk of adverse or unanticipated market, financial or political developments and, in international transactions, currency risk. This information has been prepared in good faith and is not intended to create legal relations and is not binding on MGL under any circumstances whatsoever. 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. MBL, acting through its London branch, is authorised and regulated by the Financial Conduct Authority and the Prudential Regulation Authority to carry on banking business in the United Kingdom. MBL, acting through its Seoul Branch, is authorised and regulated by the Financial Services Commission in Korea to carry out banking business in Korea. MBL, acting through its Singapore Branch, is authorised and regulated by the Monetary Authority of Singapore to carry out banking business in Singapore. MBL maintains Representative Offices in New York and Texas, but is not authorised to conduct business in the US. Macquarie Bank Europe Designated Activity Company (“MBE”), is a credit institution regulated by the Central Bank of Ireland and is registered in Ireland (company number 634817). Macquarie Bank Europe Designated Activity Company Paris Branch is regulated by the Autorité de contrôle prudentiel et de résolution (“ACPR”) and the Autorité des Marchés Financiers for conduct of business rules. Macquarie Bank Europe Designated Activity Company Frankfurt Branch is regulated by the Bundesanstalt für Finanzdienstleistungsaufsicht (“BaFin”) for conduct of business rules. Macquarie Bank Europe Designated Activity Company Milan Branch is regulated by Banca d’Italia for conduct of business rules. PROHIBITION OF SALES TO EEA RETAIL INVESTORS – Nothing in this presentation is taken to be offered, sold or otherwise made available to and should not be offered, sold or otherwise made available to any retail investor in the European Economic Area ("EEA"). For these purposes, a retail investor means a person who is one (or more) of: (i) a retail client as defined in point (11) of Article 4(1) of Directive 2014/65/EU ("MiFID II"); (ii) a customer within the meaning of Directive (EU) 2016/97 (as amended, the “Insurance Distribution Directive”) where that customer would not qualify as a professional client as defined in point (10) of Article 4(1) of MiFID II; or (iii) not a qualified investor as defined in Regulation (EU) 2017/1129 (as amended, the "Prospectus Regulation"). Consequently no key presentation document required by Regulation (EU) No 1286/2014 (the "PRIIPs Regulation") has been prepared and therefore offering or selling any securities or otherwise making them available to any retail investor in the may be unlawful under the PRIIPs Regulation. PROHIBITION OF SALES TO UK RETAIL INVESTORS – Nothing in this presentation is taken to be offered, sold or otherwise made available to and should not be offered, sold or otherwise made available to any retail investor in the United Kingdom (“UK”). For these purposes, a retail investor means a person who is one (or more) of: (i) a retail client, as defined in point (8) of Article 2 of Regulation (EU) No 2017/565 as it forms part of domestic law by virtue of the European Union (Withdrawal) Act 2018 (“EUWA”); (ii) a customer within the meaning of the provisions of the FSMA and any rules or regulations made under the FSMA to implement the Insurance Distribution Directive, where that customer would not qualify as a professional client, as defined in point (8) of Article 2(1) of Regulation (EU) No 600/2014 as it forms part of domestic law by virtue of the EUWA; or (iii) not a qualified investor as defined in Article 2 of the Prospectus Regulation as it forms part of domestic law by virtue of the EUWA. Consequently no key information document required by Regulation (EU) No 1286/2014 as it forms part of domestic law by virtue of the EUWA (the “UK PRIIPs Regulation”) has been prepared and therefore offering or selling any securities or otherwise making them available to any retail investor in the UK may be unlawful under the UK PRIIPs Regulation. This presentation is only being provided to non-US persons outside the United States in compliance with Regulation S under the US Securities Act of 1933, as amended (“the Securities Act”). The financial products and/or services referred to in this presentation may not be eligible for sale in all jurisdictions. This presentation is directed at institutional clients who have professional experience as defined by applicable law and/or regulation in the relevant jurisdiction. For more information, please visit: https://www.macquarie.com/au/en/disclosures.html To the extent permitted by law, neither MGL nor its related bodies corporate (the “Macquarie Group”, ”Group”) nor any of its associates, directors, officers or employees, or any other person (together, “Persons”), makes any promise, guarantee, representation or warranty (express or implied) to any person as to the accuracy or completeness of this information, or of any other information, materials or opinions, whether written or oral, that have been, or may be, prepared or furnished by Macquarie Group, including, without limitation, economic and financial projections and risk evaluation. No responsibility or liability whatsoever (in negligence or otherwise) is accepted by any person for any errors, mis-statements or omissions in this information or any other information or materials. Without prejudice to the foregoing, neither the Macquarie Group, nor any Person shall be liable for any loss or damage (whether direct, indirect or consequential) suffered by any person as a result of relying on any statement in or omission from this information. The information may be based on certain assumptions or market conditions, and if those assumptions or market conditions change, the information may change. No independent verification of the information has been made. Any quotes given are indicative only. The Macquarie Group or its associates, directors, officers or employees may have interests in the financial products referred to in this information by acting in various roles including as provider of corporate finance, underwriter or dealer, holder of principal positions, broker, lender or adviser and may receive fees, brokerage or commissions for acting in those capacities. In addition, the Macquarie Group and its associates, directors, officers or employees may buy or sell the financial products as principal or agent and as such may effect transactions which are not consistent with any recommendations in this information. Unless otherwise specified all information is as at 31 December 2024. This presentation may contain climate related and other forward-looking statements including statements regarding our intent, belief or current expectations with respect to MGL’s businesses and operations, market conditions, results of operation and financial condition, capital adequacy, specific provisions and risk management practices. Climate-related forward-looking statements are particularly affected by uncertainties and factors such as evolving standards, definitions and methodologies, lack of accurate and reliable historical data, complex calculations, modelling and scenario analysis and changing and uncertain climate-related laws, regulations and policies. Readers are cautioned not to place undue reliance on these forward-looking statements. MGL does not undertake any obligation to publicly release the result of any revisions to these forward-looking statements to reflect events or circumstances after the date hereof to reflect the occurrence of unanticipated events. While due care has been used in the preparation of forecast information, actual results may vary in a materially positive or negative manner. Forecasts and hypothetical examples are subject to uncertainty and contingencies outside MGL’s control. Past performance is not a reliable indication of future performance.
Page 3
01 Commodities and Global Markets Simon Wright and Arun Assumall
Page 4
4© Macquarie Group Limited 4 What we do CGM is a global business offering capital and financing, risk management, market access and physical execution and logistics solutions to its diverse client base Capital and financing Providing clients with financing solutions across the capital structure Risk management Helping clients manage exposure to price changes in commodities, currencies, credit and equity markets Physical execution and logistics Facilitating the transport of physical commodities from production to consumption Clients Financial institutions Corporates and multinationals Producers and consumers Investors Market access Helping clients access markets globally Optimisation Our deep expertise and physical presence allows us to optimise how we manage both our clients’ risk exposures and trading opportunities which are conducted within Macquarie’s strong internal risk management framework Commodities Financial Markets Asset Finance Overview Commodities Fixed Income & Currencies Shipping Finance Q&A Closing C
Page 5
5© Macquarie Group Limited 5 Our clients have access to a global network of 2,500+ specialist staff1 across 21 markets, that provide a unique combination of financial, technical and operational expertise Americas 654 4 Global team with deep expertise In-house technical experts including logistics experts, geologists, meteorologists, petroleum and mining engineers, data scientists, traders, schedulers, marketers, analysts and quant finance and theoretical physics PhDs Operating globally with strong presence in London, Houston, New York, Singapore and Sydney 24-hour access providing clients with service when they need it across trading, price making and distribution EMEA 934 5 Asia 389 10 ANZ 571 2 of client partnerships evolving into niche activities in some markets, and scale in others in metals, futures and foreign exchange in agriculture and technology, media and telecommunications in energy markets and renewables 45+ years 45+ years 25+ years 20+ years Who we are As at 31 Dec 24 unless otherwise stated. 1. Includes staff employed in certain operationally segregated subsidiaries throughout the presentation. 5 Staff1 Markets Overview Commodities Fixed Income & Currencies Shipping Finance Q&A Closing C
Page 6
6© Macquarie Group Limited 6 64%10% 26% A global business offering diversified by products and regions 1. Operating income is net operating income excluding earnings on capital and other corporate items. Percentages contribution by business and region is based on average operating income for the past three years (FY22 to FY24). Operating income split by division1 Operating income split by region1 Asset Finance • Meters • Shipping • Advanced Technology • Structured Lending • Other Financial Markets • Fixed Income and Currencies • Futures • Equity Derivatives and Trading Commodities • North American gas, power and emissions • EMEA gas, power and emissions • APAC gas, power and emissions • Agriculture • Global oil • Bulk commodities • Base and precious metals • Mining Finance • Commodity Investor Products • Global Carbon 33% 16% 11% 40% EMEA • France • Ireland • Switzerland • United Arab Emirates • United Kingdom ANZ • Australia • New Zealand Americas • Brazil • Canada • Mexico • United States Asia • China • Hong Kong • India • Japan • Malaysia • Philippines • Singapore • South Korea • Taiwan • Thailand Overview Commodities Fixed Income & Currencies Shipping Finance Q&A Closing C
Page 7
7© Macquarie Group Limited 7 78% 73% 68% 85% 87% 0% 20% 40% 60% 80% 100% 0 2,000 4,000 6,000 8,000 10,000 FY21 FY22 FY23 FY24 1H25 Other Income Foreign exchange, interest rates and credit Equity derivatives and trading Brokerage and fee income Leasing (operating and finance) income Commodity lending and financing Commodity risk management Investment income Commodity inventory management and trading Underlying client business % (RHS) A client-led business The majority of our income is derived from core client business 1. Included within underlying client business is a relatively small (~5%) amount of foreign exchange, interest rates and credit and equity derivatives and trading activity not related to clients. 2. Rounded to the nearest 10. Client numbers have been restated to reflect methodology changes around counterparty consolidation. 3. Asset Finance includes wholesale clients only. 4. Average from FY21 to FY24. 5. For the half year ended 30 Sep 24. 6. Excludes Asset Finance as client numbers were impacted by the sale of the industrial and commercial meters portfolio in FY22. ~75% (on average) percentage of our income is generated from underlying client business4 85%+ of our client income is generated from repeat clients5 7% annual growth in clients per annum across Commodities and Financial Markets over the past four years6 Platform diversity drives earnings stability and de-risks the portfolio CGM operating income 3,350 3,550 3,460 3,620 3,760 FY21 FY22 FY23 FY24 1H25 Commodities Financial Markets Asset Finance A growing client base2 % of income generated from underlying client business1 3 $Am Overview Commodities Fixed Income & Currencies Shipping Finance Q&A Closing C
Page 8
8© Macquarie Group Limited Established diverse income streams CGM average income FY20 - FY241 Annuity-style Markets-facing CGM’s diversity of income CGM Commodities Lending & Financing CGM Asset Finance CGM Financial Markets CGM Commodities Risk Management CGM Commodities Inventory Mgmt & Trading Business drivers $A7.9b Asset Finance portfolio2 generating spread- related annuity-style income A growing client franchise over the past five years across sectors and geographies Moving commodities from producers to consumers and managing inventory CGM generates a diverse blend of earnings. Our strong and growing client franchise generates markets-facing income with annuity-style attributes 1. Represents average net operating income. 2. Asset finance and loan portfolio as at 31 Dec 24. 8 27% 49% 24% Markets-facing income with annuity-style attributes increased to 55% in FY24 Annuity-style Markets-facing Overview Commodities Fixed Income & Currencies Shipping Finance Q&A Closing C
Page 9
© Macquarie Group Limited 9 Regulatory capital and trading revenue Underlying client activity continues to drive regulatory capital and trading revenues 1. Includes the impact of APRA’s “Unquestionably Strong” bank capital framework which came into effect from 1 Jan 23. Implementation of UQS resulted in an increase in CGM capital requirements, largely on account of higher regulatory buffers, along with RWA calculation changes. All figures are shown at the post-UQS ratio of 10.5% RWA. Prior periods have not been normalised for RWA calculation changes, including the implementation of the Standardised Measurement Approach to Operational Risk. 2. The daily profit and loss refers to results that are directly attributable to market-based activity from Macquarie's desk. 3. FY25 results extrapolated based on data up to 31 Dec 24. More large daily gains in periods of extreme market volatility reflective of asymmetric opportunities and our robust risk management framework Trading P&L distribution normalising following unprecedented and extreme market volatility in FY23 Risk management approach built on 50+ years of accumulated experience in managing risk Majority of capital relates to credit risk, reflecting our client focused business CGM regulatory capital1 Group Daily trading P&L2 FY21 - FY25 (extrapolated)3 0 20 40 60 80 100 120 <-100 <-90 <-80 <-70 <-60 <-50 <-40 <-30 <-20 <-10 <0 >0 >10 >20 >30 >40 >50 >60 >70 >80 >90 >100 Days FY 2021 FY 2022 FY 2023 FY 2024 FY 2025 $Ab 0 2 4 6 8 10 12 Mar 21 Mar 22 Mar 23 Mar 24 Dec 24 Credit Market Operational Other $Am FY21 FY22 FY23 FY24 FY253 Overview Commodities Fixed Income & Currencies Shipping Finance Q&A Closing C
Page 10
10© Macquarie Group Limited 10 Risk management is core Strong focus on business accountability and risk ownership with stable and robust core risk management principles - supported by our longstanding approach to establishing and maintaining an appropriate risk culture Overview Commodities Fixed Income & Currencies Shipping Finance Q&A Closing C Ownership of risk at the business level Understanding worst-case outcomes Independent sign-off by Risk Management Group Principles stable for 30+ years Built on more than 50 years of accumulated experience in managing risk Resulting in a mature and consistent control environment that evolves as activity expands Allows CGM to partner with clients to help manage their risks, utilising our deep risk management expertise Risk management in CGM Operational risk Independent oversight of comprehensive processes and controls Dedicated Control Assurance team Governance and specialist risks Highly specialised teams of financial and non-financial risk professionals who oversee robust governance of CGM’s risk profile Credit risk Active management of exposures to sectors and individual counterparties Counterparty exposures constrained by approved credit limits Market risk Granular risk limits based on worst-case scenarios Aggregate limits constrain overall market risk appetite Compliance risk Established policy and control framework to manage market conduct Dedicated Compliance advisory team Identification of regulatory risk and implementation of risk mitigation Behavioural risk Expectation of high standards of behaviour and decision making Strong supervisory oversight Culture of ‘speak up’ and ‘listen up’ Every individual is accountable for all aspects of risk management, including risk limits, second line review and worst-case scenarios 10© Macquarie Group Limited
Page 11
11© Macquarie Group Limited 11 Delivering on our strategy What we’ve delivered: recent years Select examples Where we’re heading: 2025 onward Select examples Commodities ● Continued growth in physical and financial solutions for our clients across energy, agriculture and metals markets ● Supporting our clients on their decarbonisation pathways, including expanding our offering into the Clean Fuels and Critical Minerals segments ● Expanding our offering into new markets, including Brazil and China Financial Markets ● Bringing Credit Markets and Fund Finance together with FIC, creating a more holistic offering for our clients ● Evolving our digital client offerings across FX and Futures markets Asset Finance ● Growth in financing activity across core segments, including Shipping, Advanced Technology and Structured Lending Commodities ● Expanding existing LNG activity to capture additional opportunities across global gas markets ● Targeted growth in client activity across both financing and risk management, including through enhancing our digital offering ● Evolving and investing in data and analytics to support business growth Financial Markets ● Expanding derivatives product suite and enhancing our digital offering ● Increasing our risk appetite for financing activity with sponsors and corporate clients ● Scaling Futures activity across developed markets and explore emerging market opportunities Asset Finance ● Further expanding copper recycling and financing pipeline in collaboration with Commodities across EMEA and North America ● Continuing to scale across our core segments, including Shipping and Meters Scalingour existing business Growththrough adjacencies Core client business Our strategy has focused on growing our core client franchise organically and through adjacencies across our three businesses – Commodities, Financial Markets and Asset Finance Overview Commodities Fixed Income & Currencies Shipping Finance Q&A Closing C
Page 12
12© Macquarie Group Limited 12 Commodities and Global Markets in EMEA As at 31 Dec 24 unless otherwise stated. 1. Between 31 Dec 22 and 31 Dec 24. 2. Operating income is net operating income excluding earnings on capital and other corporate items. Percentages contribution by business and region is based on average operating income for the past three years (FY22 to FY24). Our businesses in EMEA 934 staff Regional presence since 1989 68% 13% 19% Commodities Financial Markets Asset Finance Percentage of total CGM operating income2 EMEA 33% CGM EMEA income split by business2 34% growth in headcount across France, Ireland and the UAE, boosting our regional presence1 France Ireland Switzerland United Arab Emirates United Kingdom 5 Markets 10 Locations EMEA 33% 12 Overview Commodities Fixed Income & Currencies Shipping Finance Q&A Closing C
Page 13
13© Macquarie Group Limited 13 Over 35 years of growth, innovation and collaboration in EMEA Recent EMEA highlights 20+ years in European energy markets, trading gas and power across ~20 physical and financial markets Financed ~60,000 mt of cocoa, 16m+ barrels of oil and sourced, processed and sold 30,000 mt of copper in EMEA in CY24 Active in more than 50 Futures markets globally, with major hubs in London and Paris ~$US1.8b and 200+ financed vessels in shipping portfolio Arranger or Joint Lead Manager for €6.3b of structured finance transactions across the UK and Europe over the past 3 years London office opened 1989 Early foundations Investing for growth Established Macquarie Bank Limited – London Branch Commodities Research 1994 Agriculture 1999 Started energy trading in London 2003 Acquisition of Cargill’s petroleum business (EU) 2017 Quantitative Investment Strategies (QIS), Shipping FinanceMeters financing, Emissions trading, Oil 2004 Established Macquarie Bank Europe (MBE) 2018 Merged Agriculture and Global Oil businesses 2020 Fund Finance in EMEA 2023 Acquisition of Corona Energy (UK business electricity and gas supplier) 2006 Established Macquarie Bank Limited – DIFC (Dubai International Financial Centre) Branch 2011 Fixed Income and Currencies 2013 13© Macquarie Group Limited Overview Commodities Fixed Income & Currencies Shipping Finance Q&A Closing C
Page 14
14© Macquarie Group Limited 14 Opportunity in EMEA The significant market size across key segments creates a significant runway for continued growth across our Commodities, Financial Markets and Asset Finance businesses 1. International Energy Agency (IEA), 2022. Growth in global electricity demand is set to accelerate in the coming years as power-hungry sectors expand. 2. US Energy Information Administration (US EIA), Dec 23, Crude oil, NGPL and other liquids production. 3. ICE Report, Dec 24, Futures and Options execution and clearing volumes across European Gas, Power and Environmental futures and options products. 4. Invest Europe, 2023. 5. Eurostat, 2023. European countries consume 55.4 million terajoules of energy each year1 The Middle East produces ~30 million barrels of oil each day2 Around 10.5% of global emissions come from Europe1 ~1.3 billion contracts traded annually across European gas, power and environmental futures markets3 €1.2 trillion European private equity and venture capital under management4 ~2.2 million shipping vessels enter main EU ports annually5 Overview Commodities Fixed Income & Currencies Shipping Finance Q&A Closing C
Page 15
15© Macquarie Group Limited 15 Today’s roadmap Our opportunities in EMEA Expand our offering into new products and markets Enhance client reach across our existing business Invest in data & technology and evolve our platform In today’s agenda, you’ll hear how we deliver this in practice in the region Commodities Erik Petersson and Benjamin Davis Fixed Income and Currencies Craig Ross, Arturo Alonso and Sarah Milne Shipping Finance Marc Hari Explore and invest in emerging opportunities Overview Commodities Fixed Income & Currencies Shipping Finance Q&A Closing C
Page 16
Commodities in EMEA Erik Petersson and Benjamin Davis 02
Page 17
17© Macquarie Group Limited 17 Commodities overview Our mission is to create the best client-focused commodity business by being able to take credit and equity (and equity like) risks across mature and nascent markets Our goals Create a stable base of franchise revenue from our client and financing activities, and outperformance linked to market volatility Be a solution provider to our clients, evolving our product offering and risk appetite to match their needs Access physical or financial optionality with asymmetric pay-offs through deep market expertisePhysical and financial risk taking Centralised risk framework, infrastructure and processes Financial and physical risk management Physical execution and logistics Financing and capital Market access Overview Commodities Fixed Income & Currencies Shipping Finance Q&A Closing C
Page 18
18© Macquarie Group Limited 18 Gas, power and emissions Agriculture and oil Resources Quantitative Investment Strategies Physical execution and logistics Risk management Capital and financing Market access Commodities offering in EMEA Full service offering to clients with exposure to commodity markets Leading risk management and financing provider in European gas, power and oil markets Providing bespoke solutions and access to liquidity across agricultural commodities and all major bulk, precious and base metals Major hub for commodity investor products and quantitative investment strategies across all asset classes Providing access to niche commodity markets including petrochemicals, pulp and paper and uranium 18 Overview Commodities Fixed Income & Currencies Shipping Finance Q&A Closing C
Page 19
© Macquarie Group Limited 19 Growth in our Commodities franchise The business has grown organically, driven by responding to our clients' needs Our diverse client base includes corporates, consumers, producers, manufacturers, industrials, processors, refineries, major utilities, institutional funds and hedge funds 0 50 100 150 200 250 300 350 400 Resources Corona Energy Ags Global Oil EMEA GPEU FY21 FY24 Commodities income split by region (FY24) Growth in EMEA (P&L)Growth in our EMEA Commodity clients $Am No. 360 380 400 420 440 460 FY21 FY24 ANZ 8% Asia 8% EMEA 44% Americas 40% Overview Commodities Fixed Income & Currencies Shipping Finance Q&A Closing C EMEA GPE
Page 20
20© Macquarie Group Limited 20 Areas of focus We are focused on several key macro thematics that are impacting global commodity markets and our business Growth in power demand and renewable grids and battery storage Gas as the baseload transition fuel Decarbonisation Heightened geopolitical risks Tariffs, higher rates environment, inflationary pressures Climate volatility Population growth and the impact on agricultural products Critical minerals and growth in metals demand linked to the energy transition and digitalisation Overview Commodities Fixed Income & Currencies Shipping Finance Q&A Closing C
Page 21
© Macquarie Group Limited 21 Commodities strategy Well-positioned for growth, with the energy transition at the heart of our strategy Expanding our reach ● Strengthening presence in key regions including Europe and the Middle East ● Continuous development of our electronic trading offering / platform to utilise channel partners and access more clients ● Dedicated investment in data technologies to advance our analytics capabilities ● Focused build-out of our physical trading capabilities in Metals Developing our offering ● Broadening emissions offering to include new regional compliance certificates ● Expanding capabilities in battery material financing ● Physical and financial critical minerals / low carbon metals products, including lithium, copper and cobalt ● Utilising our physical uranium expertise to support energy requirements for data centres ● Leveraging our expertise to access opportunities in transitional fuels and biofuels ● Building energy transition-linked commodities indices for clients ● Expanding our LNG activity to capture additional opportunities across global gas markets ● Renewable and flexible power products Overview Commodities Fixed Income & Currencies Shipping Finance Q&A Closing C
Page 22
22© Macquarie Group Limited 22 Case Study: Helping clients navigate volatility in cocoa markets Exceptional volatility driven by production deficits in the main producing countries Opportunity ● A global shortage of cocoa beans – driven by a poor harvest in 2023 to 2024 – resulted in large swings in cocoa prices ● Our client, a European chocolate producer, had indexed their cocoa purchases against a historically liquid cocoa index. Due to intense price volatility, liquidity in the market had dried up ● Exposed to volatile cocoa prices, our Ags team supported the client in exploring different risk management solutions for their cocoa purchases Actions ● Our trading desk was able to provide liquidity to ensure a seamless execution and hedging strategy ● Macquarie provided a credit line to support the hedging of the client’s indexed cocoa purchases Outcome ● Access to an illiquid cocoa market through our trading desk allowed the client to hedge the price of its cocoa purchases ● They were able to leverage these hedges to remain competitive and ensure demand for their product was not impacted by price constraints ● Macquarie provides this service to a range of clients looking to mitigate their exposure to price fluctuations in agricultural markets 0 2,000 4,000 6,000 8,000 10,000 12,000 Nov 19 May 20 Nov 20 May 21 Nov 21 May 22 Nov 22 May 23 Nov 23 May 24 Nov 24 Cocoa price chart £/mt Source: Bloomberg. Overview Commodities Fixed Income & Currencies Shipping Finance Q&A Closing C
Page 23
23© Macquarie Group Limited 23 Case Study: Managing volatility in gold and silver EFP markets Our global platform ensures we are well-positioned to capture opportunities in precious metals markets Opportunity ● Ahead of President Trump’s inauguration, gold and silver futures for New York settlement traded sharply above spot London bullion quotes, sparked by the administration’s vow to impose a 10% tariff on the import of any goods into the United States ● The surge of New York futures prices spurred a flood of precious metal shipments from overseas into the US Actions ● Our Precious Metals team leveraged its global platform to source and transport gold and silver from Australia and London ● The team was able to take delivery of significant quantities of physical gold and silver, transport it from Australia and London to the US, warrant it at a New York exchange and deliver it against futures contracts Outcome ● This opportunity in the market showcased the expertise of the Precious Metals team in physical gold and silver arbitrage trading ● The global nature of our business and deep expertise in the market allows us to take advantage of opportunities during market dislocations or moments of volatility Gold physical arbitrage1 $US/mt Source: Bloomberg, interbank broker quotes, desk calculations. 1. From 1 Oct 24 to 24 Jan 25. -20 -10 0 10 20 30 40 50 1 Oct 24 15 Oct 24 29 Oct 24 13 Nov 24 27 Nov 24 12 Dec 24 26 Dec 24 10 Jan 25 24 Jan 25 Overview Commodities Fixed Income & Currencies Shipping Finance Q&A Closing C
Page 24
24© Macquarie Group Limited 24 Spotlight on EMEA Gas, Power and Emissions ● Diverse base of 100+ clients, including regional utilities, independent producers, industrial consumers and funds ● Hedging solutions in a variety of contracts ● Global coverage / presence to support the globalisation of gas ● Supporting clients with their emission obligations under upcoming ETS 2 compliance scheme Supporting our client base ● Providing market participants with direct access to physical power and gas markets through our Energy Market Access platform ● Expansion into new European power markets ● Developing capabilities to manage power flexibility, such as peakers or batteries ● Ability to innovate and monetise optionality products (e.g. gas-fired power stations, gas vs oil formula) Trading across key hubs and exchanges in Europe ● Virtual or physical storage ● Financing of LNG cargoes (via payment terms or through voyage) ● Provision of intermediation solutions ● Expanding physical footprint in Eastern and Southeast Europe regions Physical offtake and supply ● Supporting clients’ operational liquidity by modified payment terms and extending credit ● Long-term contract restructure and working capital financing ● Exchange vs OTC optimisation structures ● Working on specialist structures including revolving credit facility for merchant power, letters of credit for renewable operators, structured loans for suppliers Structured financing and capital solutions More than 15 years of experience in European physical and financial power and gas, extending to LNG. We create bespoke risk management solutions for clients Overview Commodities Fixed Income & Currencies Shipping Finance Q&A Closing C
Page 25
25© Macquarie Group Limited 25 Supporting clients through all market conditions Dutch gas (TTF) monthly price 0 25 50 75 100 125 150 175 200 225 250 275 300 325 Aug 21 Sep 21 Oct 21 Nov 21 Dec 21 Jan 22 Feb 22 Mar 22 Apr 22 May 22 Jun 22 Jul 22 Aug 22 Sep 22 Oct 22 Nov 22 Dec 22 Jan 23 Feb 23 Mar 23 Apr 23 May 23 Jun 23 Jul 23 Aug 23 Sep 23 Oct 23 Nov 23 Dec 23 Jan 24 Feb 24 Mar 24 Apr 24 May 24 Jun 24 Jul 24 Aug 24 Sep 24 Oct 24 Nov 24 Dec 24 Jan 25 Feb 25 Nord Stream 2 does not comply with EU law Gazprom starts filling European storage Cold weather forecast Milder weather forecasts Europe to reduce dependence on Russian gas amid continued escalation No reduction in Russian flows Gas payments to Russia to be paid in Rubles Reduction in Nord Stream 1 flows Freeport LNG terminal restart delayed EU discusses market intervention Gazprom to halt gas flows via Nord Stream 1 Nord Stream 1 and 2 shut indefinitely following explosion Mild and windy weather Colder weather forecasts Warmer weather forecasts Ample supply, warm weather Tensions escalate in Gaza Transit flows through Ukraine halt Concerns over EU storage Russia launches invasion of Ukraine €/MWh EU reiterates intention to pursue market intervention Overview Commodities Fixed Income & Currencies Shipping Finance Q&A Closing C Source: Macquarie, Bloomberg. From 1 Aug 21 to 27 Feb 25.
Page 26
26© Macquarie Group Limited 26© Macquarie Group Limited Creating bespoke financing solutions to match the needs of our clients Executed a €200m physical gas prepayment for major European energy supplier Macquarie's presence across all major physical and financial gas and power markets Our ability to leverage our strong credit and balance sheet Our deep fundamental and specialist expertise in providing tailored solutions for clients Our Commodities business structured and executed a €200m prepayment (for 4TWh) for an energy major, showcasing our ability to extend material funding and credit exposure to our physical client base at competitive levels and on an unsecured basis. Macquarie transacted an Exchange of Futures for Physical (EFP) trade, securing the financed amount of gas for the 1QCY25 under its existing physical trading documentation. Macquarie prepaid for this volume in December and adjusted the payment throughout 1QCY25 based on actual gas prices. This prepayment supported our client by providing them with immediate working capital, enabling the producer to effectively manage their cash flow, fund ongoing operations and invest in new projects. Our unique ability to provide these structures to our clients is distinguished by: Overview Commodities Fixed Income & Currencies Shipping Finance Q&A Closing C
Page 27
27© Macquarie Group Limited 27© Macquarie Group Limited Executing German national emissions trading system transaction Macquarie supported a major German refining company with a large intermediation transaction Macquarie has operated in environmental markets for 15+ years, supporting clients in mandatory and voluntary markets, providing price visibility and balance sheet for carbon inventory finance trades With the extension of the European carbon market into EU ETS 2, Germany has introduced a domestic carbon tax, obligating certain sectors to purchase certificates against their emissions This carbon product is in addition and separate to carbon for emitters via incineration (such as fuel-fired power generators, or large industrial processes) in EU ETS 1 Our Commodities team faced the German ETS (nEHS) market for the client, and allowed beneficial payment terms, which facilitated the financing of their obligation under this new scheme of more than €200m Macquarie helped the client understand the risks and provide operational liquidity where needed, given the annual market obligation is in excess of €15b now and escalating at a regulated price Overview Commodities Fixed Income & Currencies Shipping Finance Q&A Closing C
Page 28
28© Macquarie Group Limited 28 More than 20 years of experience providing tailored solutions across crude oil, refined products and petrochemicals Spotlight on EMEA Oil and Petrochemicals ● Actively providing risk management services to 300+ corporate clients across oil and petrochemicals globally, including refineries, airlines, producers and industrials ● Bespoke products which match clients’ risk exposures ● Growing our presence and client base in the Middle East and Africa Client focused business ● In FY24, we financed and managed the physical operations of 10.3m barrels of oil and oil products in tanks across EMEA ● Cross-barrel, global, financial and physical platform ● Deep understanding of physical commodity transactions, which allows us to provide deeper insights to our customer base Physical execution, logistics and storage ● Supply / offtake agreements and cargo financing ● Provision of title-based physical financing (inventory monetisation) and lien-based financing (borrowing bases) ● Three refinery deals in EMEA at present, with two in the pipeline Bespoke financing solutions ● Allowing clients to mitigate price swings between conventional and renewable fuels ● Expanding range of recycled petrochemicals ● Leveraging global carbon offering to assist corporates with both regulated and voluntary carbon credits / offsets Expanding our product offering Overview Commodities Fixed Income & Currencies Shipping Finance Q&A Closing C
Page 29
29© Macquarie Group Limited 29© Macquarie Group Limited CGM supported a leading European consumer goods company to hedge rPET for consumption in the US A long-standing client was looking to change the resin used in the production of packaging materials from virgin resin to recycled resin As part of this shift to recycled materials, the client anticipated increasing exposure to rPET resin and asked for Macquarie’s support to manage this risk Macquarie has been working on offering capabilities around rPET for some time and the team was able to draw on its expertise in this area, both in European and US markets The team put in place a comprehensive risk management solution, which resulted in these first-of-a-kind trades for Macquarie, offering financial hedges on European rPET markets Executing Macquarie’s first rPET trades Executed first recycled polyethylene (rPET) deals in both the US and Europe, demonstrating our ability to price and manage illiquid risk and respond to clients’ evolving needs Overview Commodities Fixed Income & Currencies Shipping Finance Q&A Closing C
Page 30
Fixed Income and Currencies in EMEA Craig Ross, Arturo Alonso and Sarah Milne 03
Page 31
© Macquarie Group Limited 31 About FIC A client-centric business providing tailored solutions that meet the evolving needs of our clients across foreign exchange, interest rates, financing and credit markets Risk Management Financing FX trading and risk management Our Clients Fund Finance IR trading and risk management e-Market solutions Securitisation and Structured Credit Credit Markets Our products resonate strongly with corporate and private fund clients Private funds Credit funds Continuation funds Hedge funds Corporations Sports clubs Pension funds High net worth individuals 31 Overview Commodities Fixed Income & Currencies Shipping Finance Q&A Closing C
Page 32
32© Macquarie Group Limited 32 An established presence across all major international hubs, partnering product expertise with local client relationships Americas 34% of FIC income1 78 2 EMEA 15% of FIC income1 50 4 Asia 22% of FIC income1 37 3 ANZ 29% of FIC income1 55 3 Global team with deep expertise Our clients benefit from strong deal execution and specialist financing solutions underpinned by deep technical and fundamental market analysis 95% retention rate of FIC staff globally2 20 languages spoken among FIC staff globally2 21 Executive Director-level leaders in FIC globally2 FIC regional presence As at 31 Dec 24 unless otherwise stated. Headcount and locations figures includes staff employed in certain operationally segregated subsidiaries throughout the presentation. 1. Based on the average of the past three years (FY22 to FY24). 2. As at 31 Jan 25. Staff Locations Overview Commodities Fixed Income & Currencies Shipping Finance Q&A Closing C
Page 33
33© Macquarie Group Limited 33 Evolution of FIC FX division 1980s Merge with capital markets 1997 BT acquisition enhanced rates team 1999 Merged with debt markets and securitisation Started New York office Start of global deployment 2009 EM LATAM joined FIC 2010 Singapore CGM office build out Tokyo office opens 2011 London office opens 2013 Asian markets join FIC 2015 MBE / Paris office opens 2020 2021 Fund Finance expands into EMEA 2023 Fund Finance joins FIC Credit Markets joins FIC Overview Commodities Fixed Income & Currencies Shipping Finance Q&A Closing C
Page 34
© Macquarie Group Limited 34 FIC revenue breakdown Bringing together Fund Finance and Credit Markets with FIC derivatives has created a more holistic offering for our clients and driven synergies and revenue growth across our global business FIC Global – Historic income contribution $Am 34 0 200 400 600 800 1,000 1,200 FY17 FY18 FY19 FY20 FY21 FY22 FY23 FY24 1H25 Americas ANZ Asia EMEA Fund Finance joined FIC Credit Markets joined FIC Overview Commodities Fixed Income & Currencies Shipping Finance Q&A Closing C
Page 35
© Macquarie Group Limited 35 ● Foreign Exchange G10 and emerging market cash, NDF, forwards, swaps, options, e-Markets (Macquarie Aurora) ● Interest rates G10 swaps, options and select emerging markets ● Securitisation & Structured Credit Warehouse to securitise, asset-backed loans, Sports & Entertainment solutions linked to player transfer and media rights ● Fund Finance NAV facilities, capital call / subscription line, subordinated subscription line 1. For CY21 to CY24. 2. Comparing FX and IR client activity in FY25 YTD with client activity in prior year. 3. As 9-month 31 Dec 24, excludes Sports Finance. 4. EUR equivalent deal value. 5. For the 9 month period ending to 31 Dec 24, actively trading on Macquarie Aurora streams across all platforms. FIC in EMEA - Overview A strong and growing presence across Europe, providing tailored solutions that meet the evolving needs of our clients Risk Management Financing Macquarie Aurora platform in EMEA5 $A600m 178 486 average daily trade value active clients active users $A2.0b Structured Credit portfolio currently held on balance sheet3 ~€340m in Fund Finance deals since establishing the local presence in 20234 70%+ of FX & rates client income generated from repeat clients in EMEA2 Activity highlights ● Arranger or Joint Lead Manager for €6.3b of structured finance transactions across the UK and Europe over the past three years1 ● Executed our first Saudi Arabian sponsorship receivable loan facility for a leading European football club ● Collaborated with Macquarie Capital to hedge the interest rate exposure on the sale of chemical terminals in the Dutch port of Rotterdam on a deal contingent basis Overview Commodities Fixed Income & Currencies Shipping Finance Q&A Closing C
Page 36
© Macquarie Group Limited 36 A growing client franchise in EMEA Our strategy focuses primarily on two core client segments – Private Funds and Corporates – and aligning our offering to meet their evolving needs We have an established and growing presence across the UK and Europe and our overall franchise continues to grow FIC EMEA Income $Am FIC EMEA Client numbers No. 0 50 100 150 200 250 FY21 FY22 FY23 FY24 1H25 0 50 100 150 200 250 300 FY21 FY22 FY23 FY24 1H25 Overview Commodities Fixed Income & Currencies Shipping Finance Q&A Closing C
Page 37
© Macquarie Group Limited 37 We have strong relationships with top global funds, with opportunity to increase our client reach across top 100 global managers and across the European Private Funds market, while increasing engagement with our existing clients 52% of top 100 managers globally Private Funds market opportunity 43% of UK & European managers within top 100 global list Existing client reach1 1. Comparing PEI’s top Private Funds lists for 2024 to Macquarie revenue generating accounts across FX & IR derivatives, Fund Finance, and Credit Markets between from FY23 to Oct 24. 37 90% of top 10 managers globally Overview Commodities Fixed Income & Currencies Shipping Finance Q&A Closing C
Page 38
38© Macquarie Group Limited 38 Growth opportunities for FIC in EMEA 1. Increase existing client value ● Continuing to align multi-product marketing across our financing and derivatives team ● Increased risk appetite for financing activity (both size of deals and number of deals) 3. Expand product suite ● FX options on Macquarie Aurora, longer-dated IR and inflation swaps ● Non-vanilla financing solutions for clients e.g. bridging products between our Settlement Solutions and Fund Finance offerings 4. Capture trading opportunities ● Continue our disciplined approach towards risk management while incrementally increasing our risk profile ● Alpha generation as and when market opportunities arise 2. Expand client footprint ● Leverage our entity structure (Macquarie Bank Europe) to scale our business across Continental Europe ● Drive growth in new clients through greater collaboration with other divisions across CGM and Macquarie Overview Commodities Fixed Income & Currencies Shipping Finance Q&A Closing C
Page 39
39© Macquarie Group Limited 39 Spotlight on Structured Credit Structured Credit is a global client-focused team specialising in securitising assets and providing unique lending solutions for a range of loan types Our expertise Credit underwriting and structuring specialists ● Specialists in understanding underlying collateral within securitisable asset classes and delivering structures to markets and investors ● Knowledge of lending and credit policies for many lenders ● Specific knowledge on sports, consumer loans, mortgages and auto loans Deep industry and market insight ● Sector knowledge across lenders, borrowers, asset classes, capital and bank markets, pricing strategies and the impact of rating agencies Operations, risk management and data analytics focus ● Operations upgrades for booking, settlements and risk reporting ● Employ data and analytics driven approach to loan performance analysis and risk management Areas of EMEA focus Business strategies earn fee, accrual and trading income based upon a complementary mix of: ● Lend to distribute asset-backed lending ● Hold to maturity asset-backed lending ● Credit Trading ● Opportunistic business in the sector, such as whole Loan Purchases; taking equity stakes in our clients Key growth opportunities ● European expansion via MBE ● New asset classes - corporate & consumer risk ● Cross selling cooperation with wider FIC ● Consolidation of operations across new global team Overview Commodities Fixed Income & Currencies Shipping Finance Q&A Closing C
Page 40
© Macquarie Group Limited 40 Spotlight Structured Credit We have a growing client franchise across Europe The French pharmacy sector is highly regulated, permitting only licensed pharmacists to own pharmacies With the average owner age exceeding 50 years and 25%+ anticipating retirement in the next decade, a generational transition is critical Limited bank support and savings capacity of young pharmacists has resulted in an ~€8b funding shortfall over the next 5 years To address this, we’ve partnered with Antaria - a provider of financing, transactional and business services to the French pharmacy sector – to scale lending activities This partnership capitalises on our proficiency in scaling non-bank lenders across Europe and Antaria's extensive local market insights and origination capabilities in France Partnered with Antaria to address €8b funding gap in the French pharmacy sector Creafin is the only independently-owned NBFI mortgage lender in Belgium, providing specialist mortgage loans to homeowners After 20+ years of operation, they were looking to evolve their business model, using their balance sheet to warehouse and securitise higher yielding mortgages Our team structured a senior secured revolving facility to finance their new origination In addition, we provided a minority equity injection while also facilitating an introduction to a mezzanine financing counterparty to safeguard their funding for future growth Supported growth ambitions of a Belgian NBFI in a €6b annual specialist mortgage market Overview Commodities Fixed Income & Currencies Shipping Finance Q&A Closing C
Page 41
41© Macquarie Group Limited 41 Client segment Products – FX & Rates Private Funds ● Private funds with strategies including infrastructure, private debt, real estate, buyouts, secondaries and other ● Specialist vehicles for funds including continuation funds, SMAs, concentrated investor base, HNW ● Spot, forwards, options, interest rate and cross-currency swaps for deliverable and non-deliverable currencies ● Bespoke strategies such as recoupons, historic rate rollovers and mark to market facilities ● Margin free thresholds creating buffer for client needs to post collateral Corporates ● Portfolio companies or SPVs of Private funds ● Large corporates where Macquarie is relevant due to sector overlap (e.g. aerospace) or rating / geography ● Mid-sized or family-owned private companies where FX is a critical component of the business mix ● Event driven situations (Financing, M&A) ● Spot, forwards, options, interest rate and cross-currency swaps for deliverable and non-deliverable currencies ● Structured FX options ● Interest rate options (caps/floors/exotics) ● Deal contingent trades ● Orphan swaps Spotlight on Derivative Solutions The Derivative Solutions Group in EMEA focuses on key client segments – Private Funds and Corporates - and aligning our offering to meet their evolving needs Key growth opportunities Further penetration into the Private Equity space in Europe which is more fragmented than in North America Holistic client relationship approach: lead with CGM lending capabilities to existing client relationships to capture derivatives opportunity Geographic expansion into Italy, the Middle East, Eastern Europe and the Nordics Developing new bespoke products for client base, tailored to the existing needs of the market Overview Commodities Fixed Income & Currencies Shipping Finance Q&A Closing C
Page 42
42© Macquarie Group Limited 42 Spotlight on Derivative Solutions Case study: Collaborated with our Asset Finance business to hedge the interest rate exposure on the construction of an Italian solar portfolio A portfolio company of a UK-based private investment firm was exploring financing solutions for the construction of a 178 MW portfolio of solar PV assets in the south of Italy Although those discussions did not ultimately result in Macquarie providing financing for the project, a potential opportunity was identified to support the client with their interest rate hedging needs Leveraging the close relationship between our Asset Finance team and the client, we worked in a condensed timeframe to create a solution for the client Identifying an opportunity As one of few banks in Europe that can deliver bespoke orphan derivatives, we were able to structure a unique 2.5 years interest rate swap Our track record working with Private Funds and portfolio companies, coupled with our experience in creating bespoke hedging solutions across different types of structures, meant we were able to move quickly to deliver the solution at a competitive price This transaction highlights our strong intragroup relationships within CGM and our client first mindset; focusing on providing innovative solutions to meet our clients' needs Providing a unique solution 42 Overview Commodities Fixed Income & Currencies Shipping Finance Q&A Closing C
Page 43
Shipping Finance Marc Hari 04
Page 44
44© Macquarie Group Limited 44© Macquarie Group Limited With specialised teams in Shipping and Meters, we leverage deep industry and asset expertise to offer leasing, secured debt, equity and equipment advisory services to clients worldwide Specialised and Asset Finance in EMEA At our core, we provide asset finance to clients across diverse sectors Specialised Finance Lending and Asset Finance Shipping Finance Meters Specialised and Asset Finance EMEA Americas APAC Overview Commodities Fixed Income & Currencies Shipping Finance Q&A Closing C
Page 45
© Macquarie Group Limited 45 Note: Reflects data as at 10 Jan 25. Tailored, specialised loans is our core service ● Asset-focused approach ● Senior secured loans, generally attaching at 50% to 70% of market values ● Appetite and ability to underwrite and hold large tickets and grow relationships (over $US100m) ● Streamlined processes and agile interactions with stakeholders, enabling swift transaction execution ● Robust risk framework and very strong operational track record Global client base and flexible client profile ● Reputable small and mid-sized owners (3-40 ships) ● Private equity and joint ventures ● Larger owners with more mature fleets, offshore assets or significant newbuilding programs ● Agnostic to geography Over 20 fully dedicated staff across Zurich, London and New York Deep sector expertise Average of 11 years of shipping experience Set up for growth Managed exceptional growth without expanding team size ~$US1.8b and 200+ financed vessels in our portfolio Agile shipping lender providing long-term capital across all commoditised shipping segments, including dry bulk, container ships, crude tankers and chemical / product tankers as well as offshore service vessels Shipping Finance 45 Overview Commodities Fixed Income & Currencies Shipping Finance Q&A Closing C
Page 46
46© Macquarie Group Limited 46 0.0 0.1 0.2 0.3 0.4 0.5 0.6 0.7 0.8 0.9 1.0 1.1 1.2 1.3 FY17 FY18 FY19 FY20 FY21 FY22 FY23 FY24 FY25 Tankers Containers Bulkers Chemical Tankers Gas Carriers Offshore Car Carriers FY25 YTD Driving growth through innovation 1. FY25 YTD reflects volumes for the 11 months ending 28 Feb 25. $USb Continuous evolution Built out team and platform, developed client baseFY18- FY20 Established the business at a time when many shipping banks significantly reduced their exposuresFY17 Commenced providing back leverage to shipping focused credit fundsFY21 Repeat clients become a key source of originationFY23 Structured first Shariah compliant facility Approval to operate in Europe post Brexit through Macquarie Bank Europe, opening key markets such as Germany and Norway Expanded into further types of offshore support vessels, including anchor handling tug supply vessels and construction support vessels FY25 Loan book surpassed $US1bFY22 FY24 Expanded into offshore service vessels Expanded into car carriers Introduced pre-delivery financing 46 Origination volumes1 Overview Commodities Fixed Income & Currencies Shipping Finance Q&A Closing C
Page 47
47© Macquarie Group Limited 47© Macquarie Group Limited With a proven track record of leveraging opportunities, we have a strong opportunity to grow our portfolio ● Leverage growth opportunities in current regions, offshore oil and gas, renewables and pre- delivery financing. Expand into new regions such as Germany and Norway Continue developing core lending business ● Implement tiered pricing and focus on whole of business outcomes to expand target market Tiered pricing and total business metrics ● Capitalise on deep sector expertise and robust risk framework to manage facilities at elevated LVR levels Higher loan-to-value ratio (LVR) product ● Including India, Saudi Arabia, Brazil, Malaysia and West Africa Targeting higher complexity jurisdictions ● Potential equipment leasing opportunities related to the energy transition (e.g. batteries, wind sails, carbon capture and other efficiency devices) Maritime segment expansion Strategic priorities © Macquarie Group Limited Overview Commodities Fixed Income & Currencies Shipping Finance Q&A Closing C
Page 48
Closing and Q&A Simon Wright 05
Page 49
49© Macquarie Group Limited 49 What’s next for CGM in EMEA? Continue to drive growth in our core client franchise across our Commodities, Financial Markets and Asset Finance businesses Expand our offering into new products and markets Enhance client reach across our existing business Invest in data & technology and evolve our platform Explore and invest in emerging opportunities Overview Commodities Fixed Income & Currencies Shipping Finance Q&A Closing C
Page 50
06 EMEA Investor Tour: Closing Alex Harvey
Page 51
51© Macquarie Group Limited 51 Macquarie Capital Diverse, client-led businesses with optionality to significant upside in certain market conditions Energy transition Digitalisation Infrastructure Private CapitalCommodities Macquarie Asset Management Commodities and Global Markets Macquarie Capital connects ideas to capital $A16.1b EMEA principal portfolio across credit and equity 16% CAGR in EMEA fee revenue since FY21 Macquarie Asset Management is a global integrated asset manager and is trusted by clients to grow the value of their assets by investing responsibly Commodities and Global Markets offers capital and financing, risk management, market access and physical execution and logistics solutions Scalingour existing business Growththrough adjacencies Core client business ~75% of our income is generated from underlying client business6 Platform diversity drives earnings stability and de- risks the portfolio $A55b+ capital raised from EMEA in the last 5 years5 400+ Institutional clients in EMEA $A943b assets under management, globally4 Over 35 years in EMEA We’ve highlighted the diverse combination of businesses and decades of growth, innovation and collaboration in the region by leveraging our local and global expertise for the benefit of the communities in which we operate Data as at 31 Dec 24 unless otherwise stated. 1. Total view includes repayments and loss on sale, FY23 to 3Q25. 2. Volume-weighted cumulative IRR for fully realised equity investments to 30 Sep 24. Presented in $A based on realised deals over $US5m up to 1H25. The figures do not include the payment of any fees, carry or costs incurred by Macquarie Capital in relation to the investment (such as due diligence costs). 3. Refers to realised gains / (losses), calculated on an aggregate basis, on assets with a payment default and assets realised at less than 1.0x Multiple of Money (MoM) expressed as a percentage of total invested capital based on book value since Feb 09, divided by the number of years since Feb 09. Realised gains / (losses) on an asset is its total lifetime profit, including interest, fees and principal proceeds, and is net of related expenses. MoM on an asset is its total realised proceeds (including interest, fees and principal proceeds net of related expenses) over capital invested. Performing ECL (stage 1 and 2) on the private credit book is greater than 2% with total ECL including stage 3 provisions of greater than 2.5%, in addition to greater than 1.5% of unamortised discount. 4. Private Markets Assets under Management (AUM) throughout the presentation is defined as: 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. 5. Capital raised is based on fund manager location for FY20 to FY24. 6. Average from FY21 to FY24. Overview Commodities Fixed Income & Currencies Shipping Finance Q&A Closing C ~23% aggregate lifetime equity IRR2 4.0% to 4.5% average net interest margin per annum, globally1 Less than 0.1% average annual realised loss rate since portfolio inception3
Page 52
52© Macquarie Group Limited 52 Overview Commodities Fixed Income & Currencies Shipping Finance Q&A Closing C BFS MAM CGM MacCap Established, diverse income streams Operating Groups combine annuity-style and markets-facing income to generate stable earnings with optionality to significant upside in certain market conditions Annuity-style Markets-facing CGM Commodities Lending & Financing CGM Asset Finance CGM Financial Markets MAM Performance fees CGM Commodities Risk Mgmt MacCap Coverage and Advisory MacCap Private Credit CGM Commodities Inventory Mgmt and Trading MacCap Investment- related income MAM Base fees BFS Loans and Deposits BFS Wealth MAM Investment-related income (Other) MAM Investment-related income (Co-invest) As businesses mature and portfolios grow, income develops more annuity-style attributes Income that was formerly markets-facing becomes a source of stable earnings Certain income streams are inherently markets-facing, providing optionality in conducive market conditions
Page 53
53© Macquarie Group Limited 53 Annuity-style BFS’ diversity of income BFS Loans and Deposits BFS Wealth Business drivers Annuity-style income 100% 67.0 136.2 FY21 Dec 24 10.2 16.5 FY21 Dec 24 80.7 163.8 FY21 Dec 24 101.4 152.4 FY21 Dec 24 Home loan portfolio1 Business banking portfolio Deposits2 Funds on platform3 Generating stable annuity-style income for the Group Banking and Financial Services generates annuity-style income based on underlying spread on loan and deposit volumes and funds on platform Overview Commodities Fixed Income & Currencies Shipping Finance Q&A Closing C $Ab $Ab $Ab $Ab 1. Home loan portfolio excludes offset accounts. 2. BFS deposits include home loan offset accounts. 3. Funds on platform includes Macquarie Wrap, FUM in relation to institutional relationships and Macquarie Vision (used by Macquarie Private Bank).
Page 54
54© Macquarie Group Limited 54 Working with governments Leveraging our expertise to help governments address unmet community needs Overview Commodities Fixed Income & Currencies Shipping Finance Q&A Closing C Shaping policy to mobilise private capital Utilising public funds to catalyse private capital Modernising or uplifting public services Placemaking Developing and managing community infrastructure
Page 55
© Macquarie Group Limited 55 2018 Macquarie entered into agreements to deliver the integrated precinct in Martin Place 2019 Tunnel boring machine breaks through to Martin Place after 11 months of boring 2023 First train travelled through Martin Place 2015 NSW State Government announced it would build a metro line with three underground stations in Sydney CBD, one beneath Martin Place 2018 Work commenced across the precinct, including underground station, retail areas and building two new towers 2021 Entered into agreement for the sale of 39 Martin Place 2024 Project officially completed and precinct opened; project was delivered within expected timeframes and under budget Integrated precinct between 50 Martin Place and 1 Elizabeth Street home to over 9,000 Macquarie staff Today The Sydney Metro Martin Place project seamlessly integrates a major interchange for: Martin Place metro station as part of Australia’s largest public transport project Macquarie’s new global headquarters at 1 Elizabeth Street Second landmark state of the art office tower at 39 Martin Place Vast, light filled retail and dining space Delivering on key success measures: 2020 Bulk excavation completed 2021 Commenced construction of the Towers 2023 Structure of the Towers completed Effective risk management Investing in Community Delivering on sustainability Global headquarters Successful partnership with stakeholders Project timelineShaping the future of Sydney’s CBD One of Macquarie’s largest ever balance sheet infrastructure undertakings, delivered in partnership with the NSW Government Overview Commodities Fixed Income & Currencies Shipping Finance Q&A Closing C
Page 56
56© Macquarie Group Limited Macquarie Group, EMEA Investor Tour Day 4, London 13 March 2025
Page 57
57© Macquarie Group Limited 57 Glossary $A / AUD Australian Dollar LatAm Latin America € / EUR Euro LNG Liquefied Natural Gas ₤ / GBP Pound Sterling M&A Mergers and Acquisitions 1H Half Year ended 30 September MAM Macquarie Asset Management 3Q Three months ended 31 December MBE Macquarie Bank Europe ABN Australian Business Number MBL Macquarie Bank Limited Ags Agriculture MacCap Macquarie Capital ANZ Australia and New Zealand MGL / MQG Macquarie Group Limited APAC Asia-Pacific mt Metric Tonne APRA Australian Prudential Regulation Authority MW Megawatt ASX Australian Securities Exchange NAV Net Asset Value BFS Banking and Financial Services NBFI Non-Bank Financial Institution CBD Central Business District NDF Non-Deliverable Forward CCB Capital Conservation Buffer NGPL Natural Gas Plant Liquids CCyB Countercyclical Capital Buffer No. Number CGM Commodities and Global Markets NPC Net Profit Contribution CY Calendar Year NSW New South Wales EFP Exchange For Physical OTC Over the Counter EMEA Europe, the Middle East and Africa P&L Profit and Loss ETS Emissions Trading System PhD Doctor of Philosophy EU European Union PV Photovoltaic FIC Fixed Income and Currencies RWA Risk-Weighted Assets FX Foreign Exchange SMA Separately Managed Account FY Full Year ended 31 March SPV Special Purpose Vehicle HNW High Net Wealth UK United Kingdom G10 The Group of Ten UQS Unquestionably Strong GPE Gas, Power and Emissions US United States of America Overview Commodities Fixed Income & Currencies Shipping Finance Q&A Closing C
Page 58
58© Macquarie Group Limited Macquarie Group, EMEA Investor Tour Day 4, London 13 March 2025