#1Goldman Sachs 16th Annual Australia and New Zealand Investment Forum New York Presentation to Investors and Analysts 5-6 March 2020 Sam Dobson Head of Investor Relations DEI MACQUARIE ου 2016#2Disclaimer O MACQUARIE This information has been prepared on a strictly confidential basis by Macquarie Group Limited ABN 94 122 169 279 ("Macquarie") 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 Macquarie. 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. The information in this presentation does not constitute an offer to sell, or a solicitation of an offer to buy, any securities in the United States. Any securities of MGL or its subsidiaries to be offered and sold have not been, and will not be, registered under the Securities Act of 1933 (the "Securities Act"), or the securities laws of any state or other jurisdiction of the United States. Accordingly, any such securities may not be offered or sold, directly or indirectly, unless they have been registered under the Securities Act or are offered and sold pursuant to an exemption from, or in a transaction not subject to, such registration requirements. This document is not investment advice and does not constitute 'investment research' as defined in article 36(1) of Commission Delegated Regulation 2017/565 supplementing Directive 2014/65/EU, as amended. It has not been prepared in accordance with the legal requirements designed to promote the independence of investment research and it is not subject to any prohibition on dealing ahead of the dissemination of investment research. This information has been prepared in good faith and is not intended to create legal relations and is not binding on Macquarie under any circumstances whatsoever. To the extent permitted by law, neither Macquarie 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. Other than Macquarie Bank Limited ABN 46 008 583 542 ("MBL"), any Macquarie group entity noted in this document is not an authorised deposit-taking institution for the purposes of the Banking Act 1959 (Commonwealth of Australia). 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, unless noted otherwise. Each of MBL, acting through its London branch, and Macquarie Bank International Limited, 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 Singapore Branch, is authorised and regulated by the Monetary Authority of Singapore to carry out banking business in Singapore. MBL, acting through its Hong Kong branch, is authorised and regulated by the Hong Kong Monetary Authority to carry on banking business in Hong Kong. MBL, acting through its Dubai International Financial Centre Branch, is authorised and regulated by the Dubai Financial Services Authority to carry out banking business in Dubai International Financial Centre. MBL maintains Representative Offices in Illinois, New York and Texas, but is not authorized to conduct business in the US. 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. Certain financial information in this presentation is prepared on a different basis to the Macquarie Group Limited Financial Report, which is prepared in accordance with Australian Accounting Standards. Where financial information presented within this presentation does not comply with Australian Accounting Standards, a reconciliation to the statutory information is provided. This presentation provides further detail in relation to key elements of Macquarie Group Limited's financial performance and financial position. It also provides an analysis of the funding profile of the Group because maintaining the structural integrity of the Group's balance sheet requires active management of both asset and liability portfolios. Active management of the funded balance sheet enables the Group to strengthen its liquidity and funding position. This presentation may contain forward looking statements including statements regarding our intent, belief or current expectations with respect to Macquarie's businesses and operations, market conditions, results of operation and financial condition, capital adequacy, specific provisions and risk management practices. Readers are cautioned not to place undue reliance on these forward looking statements. Macquarie does not undertake any obligation to publicly release the result of any revisions to these forward looking statements to reflect events or circumstances after the date hereof to reflect the occurrence of unanticipated events. While due care has been used in the preparation of forecast information, actual results may vary in a materially positive or negative manner. Forecasts and hypothetical examples are subject to uncertainty and contingencies outside Macquarie's control. Past performance is not a reliable indication of future performance. Any additional financial information in this presentation which is not included in the Macquarie Group Limited Financial Report was not subject to independent audit or review by PricewaterhouseCoopers. Numbers are subject to rounding and may not fully reconcile. 2#3DEL 1788 Agenda 01 Overview of Macquarie 02 Operating Groups 03 1Q20 Update 04 Outlook 05 Appendix O MACQUARIE 2019#4DEL 01 Overview of Macquarie 1788 O MACQUARIE 2019#5Macquarie | Presentation to Investors and Analysts I macquarie.com Overview of Macquarie Operating Groups 3Q20 Update Outlook Appendix Macquarie overview O MACQUARIE Global diversified financial group providing clients with asset management and finance, banking, advisory and risk and capital solutions across debt, equity and commodities Macquarie Group overview1 ANNUITY-STYLE ~60% MARKETS-FACING ~40% Global presence³ EMEA 13 markets Macquarie Asset Management ~39% Banking and Financial Services ~13% Commodities and ~8% Global Markets ~32% Macquarie Capital Listed on Australian Securities Exchange (ASX: MQG)² Level I ADR: MQBKY $A563.4b assets under management as at 30 Sep 19 ~8% MBL A/A2/A+ credit rating Americas 5 markets APRA primary regulator for MBL & MGL Asia 11 markets ANZ 2 markets 15,760 employees³, operating in 31 markets 1. Net profit contribution is management accounting profit before unallocated corporate costs, profit share and income tax. Chart is based on 1H20 net profit contribution from operating groups as reported on 1 Nov 19 and has been restated for business reorganisations affecting Macquarie Asset Management, Corporate and Asset Finance, Commodities and Global Markets and Macquarie Capital that have occurred since 3 May 19. 2. On 29 Jul 96, MBL listed its fully paid ordinary shares on the ASX. 3. Employees and global locations as at 31 Dec 19. 5#6Macquarie | Presentation to Investors and Analysts I macquarie.com Overview of Macquarie Operating Groups 3Q20 Update Outlook Appendix Why Macquarie? Unbroken profitability 1H20 net profit: $A1,457m up 11% on 1H19 FY19 net profit: $A2,982m up 17% on FY18 Diverse business mix 4 Operating Groups 60% Annuity-style Net Profit Contribution Earnings growth 18% 5yr EPS CAGR Geographically diverse international 69% income in 1H202 ~ 66% in FY19; two-thirds of Consistent dividend growth 17% 5yr DPS CAGR لأمه Group capital surplus $A5.8b³ at 31 December 2019 血 Strong return on equity 1H20: 16.4% 18.0% in FY19 up from 16.8% in FY18 Strong shareholder returns Consistently outperformed major indices since listing ASX 204 2nd highest returns since listing Diversified Financials4 - 1st MSCI World Capital Markets4 - 1st MSCI World Banks4 - 1st income generated outside of Australia Underpinned by a long standing conservative risk management framework 1. Based on net profit contribution from operating groups. Net profit contribution is management accounting profit before unallocated corporate costs, profit share and income tax. 2. International income is calculated using net operating income excluding earnings on capital and other corporate items. 3. Calculated at 8.5% RWA including the capital conservation buffer (CCB), per APRA ADI Prudential Standard 110; Based on materiality, the 8.5% used to calculate the Group capital surplus does not include the countercyclical capital buffer (CCyB) of -13bps. The individual CCyB varies by jurisdiction and the Bank Group's CCуB is calculated as a weighted average based on exposures in different jurisdictions. 4. As at 17 Feb 20. Based on companies that have been continuously listed since Macquarie's date of listing (29 Jul 96). 6 Ο MACQUARIE#7Macquarie | Presentation to Investors and Analysts I macquarie.com Overview of Macquarie Operating Groups 3Q20 Update Outlook Appendix Macquarie's evolution is driven by our people Our people are closest to client needs and markets Ο MACQUARIE We seek to identify opportunity and realise it for our clients, community, shareholders and our people From positions of deep expertise, we pursue opportunities adjacent to existing businesses, largely via organic growth We are accountable for all our actions to our clients, our community, our shareholders and each other We act with integrity and earn the trust of our clients, colleagues, community and shareholders through the quality of our work and our high ethical standards We pursue opportunities that deliver real outcomes to achieve an appropriate and resilient long-term return on capital Evolution in the business Macquarie has a global presence across operating groups 1H20 69% International income FY98 D 22% International income Share of total income Group-wide standards and central support services Facilitating cross- group collaboration Challenging ideas and supporting execution Supported by the Corporate Centre Funding and capital Risk management External stakeholder management 7#80.0 20 2.0 2.5 Macquarie | Presentation to Investors and Analysts I macquarie.com Unbroken profitability through adjacent growth $Ab 3.0 Organic growth Acquisitions Regional expansion 1.5 10 1.0 0.5 FY70 Staff: 8804 Hill Samuel UK opens branch office in Sydney Started corporate finance and advisory; project finance 1980's Started commodities platform Rates FX Futures Wealth management FY86 FY87 Lease arranging First listed property trust Entered stockbroking 5 co Received an Australian Banking license as MBL Equities Staff: 11 120 Business banking Overview of Macquarie Operating Groups 3Q20 Update Outlook Appendix FY94 FY95 FY97 IT equipment financing MBL listed on the ASX HK office opened DEFT Hills Motorway Mortgage securitisation Asset management Premium funding NY office opened Motor vehicle financing Mortgages FY92 FY93 Aircraft financing Staff: 1111,133 FY99 FY00 FY02 FY03 FY04 FY05 BT Australia Wrap FY06 FY07 Corona Thames Water¹ Giuliani Capital Cards Energy (UK) FY08 Established a UK bank, MBIL Cook Inlet Energy Supply ING Asian cash equities Gas Railcar financing Meters financing Oil Sydney Airport¹ Staff: 4,070 FY09 FY90 33333 Underpinned by a strong risk management framework and capital position Note: the above list is not exhaustive. 1. Acquired on behalf of managed funds and accounts. FY13 FY16 Esanda Advantage Funding AWAS FY19 FY15 Received a HK banking license FY10 FY12 Onstream MIDIS Delaware FPK Tristone Mining and medical equipment financing Staff: 1114,657 Constellation CAF Principal Finance CMA FY17 FY14 FY15 FY16 FY17 FY18 FY19 1H20 Cargill FY18 8 O MACQUARIE GLL ValueInvest Conergy GIG Staff: 15,760#9Macquarie | Presentation to Investors and Analysts I macquarie.com Strong earnings growth FY19 EPS of $A8.83 FY19 up 17% on FY18 $A 10.00 9.00 8.00 7.00 6.00 5.00 4.00 3.00 2.00 1.00 Overview of Macquarie Operating Groups 3Q20 Update Outlook Appendix FY19 Operating income of $A12,754m FY19 up 17% on FY18 $Am 14,000 12,000 10,000 8,000 6,000 4,000 2,000 FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY14 FY15 FY16 FY17 FY18 FY19 FY20 1H 2H Ο MACQUARIE 9#10Macquarie | Presentation to Investors and Analysts I macquarie.com O MACQUARIE Overview of Macquarie Operating Groups 3Q20 Update Outlook Appendix Philadelphia San Diego San Francisco San Jose Walnut Creek EMEA Staff 2,411 EUROPE Amsterdam Braintree Dublin Edinburgh Frankfurt Geneva London MIDDLE EAST Dubai SOUTH AFRICA Cape Town Johannesburg Asia Staff 3,983 ASIA Bangkok Beijing Gurugram Hong Kong Hsin-Chu Jakarta Kuala Lumpur Australia² Staff 6,635 Manila Mumbai Seoul AUSTRALIA Adelaide Brisbane Canberra Shanghai Singapore Taipei Tokyo Gold Coast Manly Melbourne Newcastle Parramatta Perth Sydney NEW ZEALAND Auckland Macquarie's global footprint Total staff1 15,760 Americas Staff 2,731 CANADA Calgary Montreal Toronto USA Austin Boston Chicago 58% International staff Vancouver LATIN AMERICA Mexico City Sao Paulo Santiago Houston Jacksonville Los Angeles Minneapolis Nashville New York Orlando 1. As at 31 Dec 19. 2. Includes New Zealand. " wwwwww " H Luxembourg Madrid Munich Paris Reading Vienna Zurich # # 10 10#11Macquarie | Presentation to Investors and Analysts I macquarie.com Overview of Macquarie Operating Groups 3Q20 Update Outlook Appendix Diversity of earnings by business and geography Business mix¹ Regional split of income² Annity-style sinesses 25% CAF 4% BFS 6% FY07 MAM 15% CGM MacCap 40% 35% Annuity-style businesses ~53% FY19 BFS 12% CGM 25% CAF 17% Australia³ 47% MAM 24% MacCap 22% FY07 Americas 16% EMEA 22% International income 53% Asia 15% FY19 Ο MACQUARIE International income 66% Americas Australia³ 34% 30% Asia EMEA 28% 9% 1. Annuity-style based on net profit contribution (calculated as management accounting profit before unallocated corporate costs, profit share and income tax) for MAM, CAF and BFS. Markets-facing based on net profit contribution for CGM and MacCap. 2. Based on net operating income excluding earnings on capital and other corporate items. 3. Includes New Zealand. 11#12Macquarie | Presentation to Investors and Analysts | macquarie.com Overview of Macquarie Operating Groups 3Q20 Update Outlook Appendix Approximate business Basel III Capital and ROE As at 30 Sep 2019 Operating Group APRA Basel III Capital¹ @ 8.5% ($Ab) Approx. 1H20 Return on Ordinary Equity² Approx. 13-year Average Return on Ordinary Equity³ Annuity-style businesses 7.9 Macquarie Asset Management 3.7 24% 22% Banking and Financial Services 4.2 Markets-facing businesses 8.7 Commodities and Global Markets 5.0 18% 16% Macquarie Capital 3.7 Corporate 0.4 Total regulatory capital requirement @ 8.5% 17.1 Group surplus 6.7 Total APRA Basel III capital supply 23.84 16.4% 14% Note: Differences in totals due to rounding. 1. Operating Group capital allocations are based on 30 Jun 19 allocations adjusted for material movements over the Sep 19 quarter. 2. NPAT used in the calculation of approx. 1H20 ROE is based on Operating Groups' annualised net profit contribution adjusted for indicative allocations of profit share, tax and other corporate expenses. Accounting equity is attributed to businesses based on regulatory capital requirements which are based on the quarterly average capital usage from FY07 to 1H20, inclusive. 3. 13-year average covers FY07 to FY19, inclusive, and has not been adjusted for the impact of business restructures or changes in internal P&L and capital attribution. 4. Comprising of $A19.7b of ordinary equity and $A4.1b of hybrids. 12 Ο MACQUARIE#13Macquarie | Presentation to Investors and Analysts I macquarie.com Overview of Macquarie Operating Groups 3Q20 Update Outlook Appendix Stable earnings O MACQUARIE 5 year earnings volatility relative to Macquarie (since GFC) 10 year earnings volatility relative to Macquarie (includes GFC) 4.0 3.5 3.7x 3.0 2.5 2.0 3.0x 1.5x 1.5 1.4x 1.0 0.5 5.0 3.9x 4.0 3.5x 3.0 2.0 1.7x 1.4x 1.0x 0.6x 1.0x 0.7x 1.0 Global Investment Banks Global Banks Global Fund/Asset Managers Domestic Macquarie Asset Managers Domestic Majors Global Global Investment Fund/Asset Banks Managers Global Banks Domestic Macquarie Domestic Asset Majors Managers This page compares the historical earnings volatility among certain firms, and is not intended to represent that Macquarie has a comparable business model, risks or prospects to any other firm mentioned. Volatility of P&L is defined as standard deviation of P&L divided by average P&L (coefficient of variation), based on most recent annual disclosures. Source: Bloomberg as at 17 Feb 20. 13#14Macquarie | Presentation to Investors and Analysts I macquarie.com Overview of Macquarie Operating Groups 3Q20 Update Outlook Appendix Strong shareholder returns For purchases made and held to sale Macquarie has consistently outperformed the ASX 200, Diversified Financials and MSCI World Capital Markets Index O MACQUARIE % 1000 800 Outperformance Vs ASX 2001 600 Since listing 7,848% n/a² Outperformance vs ASX 200 Diversified Financials 1 Outperformance vs MSCI World Capital Markets Index1 n/a² 400 10 years 283% 172% 362% 5 years 119% 91% 139% 200 3 years 58% 52% 65% 0 Feb-97 Feb-99 Feb-01 Feb-03 Feb-05 Feb-07 Feb-09 Feb-11 Feb-13 Feb-15 Feb-17 Feb-19 Outperformance / (underperformance) vs ASX200 Average outperformance vs ASX200 Data to 17 Feb 20 for purchases made at different purchase points on a monthly basis. Source: Bloomberg. 1. Total shareholder returns. 2. Macquarie was listed prior to the formation of the MSCI World Capital Markets Index and ASX 200 Diversified Financials Index. 14#15Macquarie | Presentation to Investors and Analysts I macquarie.com MACQUARIE BANK LIMITED Long term ratings stability Standard & Poor's Ratings Movements from 2007 Rating movement (notches) AA+ AA AA- A+ A A- BBB+ 5 6 5 K Overview of Macquarie Operating Groups 3Q20 Update Outlook Appendix 6 5 7 2007 BBB 2020 Macquarie Bank JPMorgan Credit Suisse Chase Bank UBS AG AG Bank of America Citibank Bank Morgan Stanley Goldman Sachs Barclays Deutsche Bank1 Bank² Bank Intra-period ratings movement Moody's Ratings Movements from 2007 AAA # No. ratings movements Rating movement (notches) Aa1 Aa2 Aa3 1 A1 A2 A3 Baa1 7 9 5 3 2 8 Baa2 Baa3 Macquarie JPMorgan Credit Suisse UBS AG Bank Chase Bank AG Bank of America Citibank Bank Morgan Stanley Goldman Sachs Barclays Bank Bank2 Deutsche Bank As at 13 Dec 19. 1. Goldman Sachs bank only rated by Standard & Poor's from 2012. 2. Barclays Bank PLC. 15#16Macquarie | Presentation to Investors and Analysts I macquarie.com Overview of Macquarie Operating Groups 3Q20 Update Outlook Appendix Funded balance sheet remains strong Term liabilities exceed term assets 31 Dec 2018 $Ab 160 30 Sep 2019 $Ab 160 140 ST wholesale issued paper 11% 10 120 Other debt maturing in the next 12 months 7% ST wholesale issued paper 6% 140 Cash liquids and self-securitised assets 5 30% 120 20 Other debt maturing in the next 12 months 9% 31 Dec 2019 $Ab 160 ST wholesale issued paper 8% 140 Other debt maturing in the Cash liquids and self-securitised assets 5 33% 120 next 12 months 10% O MACQUARIE Cash liquids and self-securitised assets 5 30% 100 100 100 Customer deposits 40% 00 Customer deposits 37% Customer deposits 39% Trading assets 21% Trading assets 19% Trading assets 19% 80 60 80 80 60 Loan assets (incl. op lease) <1 year 11% 60 60 Loan assets (incl. op lease) < 1 year 9% Loan assets (incl. op lease) < 1 year 10% 60 Debt maturing beyond 40 40 Debt maturing beyond 12 months Debt maturing beyond 12 months 28% 31% 40 12 months 28% 40 Loan assets (incl. op lease) > 1 year 3,7 34% Loan assets (incl. op lease) >1 year 3.7 31% Loan assets (incl. op lease) > 1 year 3,7 32% 20 20 20 20 Equity and hybrids 3.4 14% Equity and hybrids 3.417% Equity and hybrids 3.4 15% Equity investments and PPE 3,86% Equity investments and PPE 3,88% Equity investments and PPE 3,8 7% 0 0 0 Funding sources Funded assets Funding sources Funded assets Funding sources Funded assets These charts represent Macquarie's funded balance sheets at the respective dates noted above. 1. 'Other debt maturing in the next 12 months' includes Structured Notes, Secured Funding, Bonds, Other Loans, Subordinated debt maturing within the next 12 months and Net Trade Creditors. 2. 'Debt maturing beyond 12 months' includes Subordinated debt not maturing within next 12 months. 3. Non-controlling interests netted down in 'Equity and hybrids', 'Equity investments and PPE' and 'Loan assets (incl. op leases) >1 year'. 4. Hybrid instruments include Macquarie Income Securities, Macquarie Additional Capital Securities, Macquarie Capital Notes 2, 3 & 4 and Macquarie Bank Capital Notes. 5. 'Cash, liquids and self-securitised assets' includes self-securitisation of repo eligible Australian assets originated by Macquarie, a portion of which Macquarie can utilise as collateral in the Reserve Bank of Australia's Committed Liquidity Facility. 6. 'Loan Assets (incl. op lease) < 1 year' includes Net Trade Debtors. 7. 'Loan Assets (incl. op lease) > 1 year' includes Debt Investment Securities. 8. 'Equity investments and PPE' includes Macquarie's co-investments in Macquarie- managed funds and equity investments. 16#17Macquarie | Presentation to Investors and Analysts I macquarie.com Overview of Macquarie Operating Groups 3Q20 Update Outlook Appendix Diversified issuance strategy Term funding as at 30 Sep 19 - diversified by currency¹, tenor² and type Currency USD 36% EUR 7% GBP 6% AUD 47% CHF 2% JPY 1% OTH 1% Tenor Securitisations >1yr 8% 1-2yrs 14% 2-3yrs 7% Type Subordinated debt 3% Senior unsecured 34% 3-4yrs 6% >5yrs 56% 4-5yrs 9% Secured funding 1% Private placement 6% Note: All data presented in these charts represents drawn facilities. 1. Equity has been allocated to the AUD currency category. 2. Securitisations have been presented on a behavioural basis and represent funding expected to mature in >1 yr. Syndicated loan facilities 12% Equity and hybrids 34% Ο MACQUARIE Covered bonds 1% PUMA RMBS 6% SMART ABS 3% 17 17#18Macquarie | Presentation to Investors and Analysts I macquarie.com Strong regulatory ratios Bank Group (Dec 19) 17.5% 7.5% Overview of Macquarie Operating Groups 3Q20 Update Outlook Appendix 190.0% 115.0% 14.2% 5.9% 14.0% 6.0% 160.0% 110.0% 158% 109% 5.3% 10.5% 11.4% 4.5% 130.0% 105.0% 7.0% 3.5% 3.0% 1.5% 0.0% 0.0% CET1 ratio Leverage ratio Bank Group (Harmonised ¹) 100.0% 70.0% 40.0% LCR 2 Bank Group (APRA) Basel III minimum 3 100.0% 95.0% 90.0% NSFR O MACQUARIE 1. 'Harmonised' Basel III estimates are calculated in accordance with the BCBS Basel III. 2. Average LCR for Dec 19 quarter is based on an average of daily observations. 3. Includes the capital conservation buffer in the minimum CET1 ratio requirement. In Nov 18, APRA released a draft update to 'Prudential Standard APS 110 Capital Adequacy' proposing a minimum requirement for the leverage ratio of 3.5% effective 1 Jan 22. 18#19Macquarie | Presentation to Investors and Analysts I macquarie.com Overview of Macquarie Operating Groups 3Q20 Update Outlook Appendix Basel III capital position APRA Basel III Group capital at Dec 19 of $A23.6b; Group capital surplus of $A5.8b1 Group regulatory surplus: Basel III (Dec 19) $Ab 10.0 O MACQUARIE 9.0 8.0 (1.9) 7.0 2.1 6.0 (0.9) 0.7 (0.6) 5.0 Based on 8.5% 8.6 (minimum Tier 1 4.0 7.9 ratio + CCB) 6.7 3.0 5.8 2.0 1.0 0.0 Harmonised Basel III at Sep-192 APRA Basel III 'super equivalence' APRA Basel II| at Sep-19 1H20 Interim Dividend 3Q20 P&L and movement in reserves³ Business growth APRA Basel II[ at Dec-19 APRA Basel III 'super equivalence'4 Harmonised Basel III at Dec-19 1. Calculated at 8.5% RWA including the capital conservation buffer (CCB), per APRA ADI Prudential Standard 110; Based on materiality, the 8.5% used to calculate the Group capital surplus does not include the countercyclical capital buffer (CCYB) of -13bps. The individual CCyB varies by jurisdiction and the Bank Group's CCyB is calculated as a weighted average based on exposures in different jurisdictions. 2. Basel III applies only to the Bank Group and not the Non-Bank Group. 'Harmonised' Basel III estimates are calculated in accordance with the BCBS Basel III framework. 3. Includes current quarter P&L, movement in the foreign currency translation reserve and other movements in capital supply. 4. APRA Basel III 'super-equivalence' includes the impact of changes in capital requirements in areas where APRA differs from the BCBS Basel III framework. Differences include the treatment of mortgages $A0.9b; capitalised expenses $A0.4b; equity investments $A0.3b; investment into deconsolidated subsidiaries $A0.1b; DTAs and other impacts $A0.4b. 19#20Macquarie | Presentation to Investors and Analysts I macquarie.com Overview of Macquarie Operating Groups 3Q20 Update Outlook Appendix Capital management update NZ היא ההההה Additional Tier 1 Capital . • On 30 Jan 2020, MBL announced that it intends to repay the $A400m Macquarie Income Securities (MIS) on 15 Apr 2020 MIS were issued in 1999 and receive transitional treatment under APRA's prudential standards that results in reducing capital recognition. The repayment will reduce Tier 1 capital by $A94m MBL also intends to redeem the $A429m Macquarie Bank Capital Notes (BCN) on 24 Mar 2020 20 20 O MACQUARIE#21Macquarie | Presentation to Investors and Analysts I macquarie.com Business capital requirements¹ $Ab 19.0 $A2.0b growth Overview of Macquarie Operating Groups 3Q20 Update Outlook Appendix 18.0 10 17.0 15.7b 16.0 15.0 0.7 0.1 (0.1) 40 0.7 (0.0) 17.1b 0.3 =] 0.1 17.7b 92 0.2 0.1 (0.1) 14.0 13.0 12.0 $A1.4b growth over 1H20 $A0.6b growth over 3Q20 11.0 10.0 Mar-19 MAM BFS CGM MacCap Corporate Sep-19 MAM BFS CGM MacCap Corporate Dec-19 1. Regulatory capital requirements are calculated at 8.5% RWA including the capital conservation buffer (CCB), per APRA ADI Prudential Standard 110. O MACQUARIE 3Q20 KEY DRIVERS MAM Increased requirements driven by short-term underwriting activity BFS Increase in mortgages and business banking loan portfolios, partially offset by decrease in the vehicle finance portfolio CGM • Increased requirements driven by lending and trading activity MacCap Includes asset realisations, partially offset by lending activity 21 21#22Macquarie | Presentation to Investors and Analysts I macquarie.com Regulatory update Australia Overview of Macquarie Operating Groups 3Q20 Update Outlook Appendix ⚫ APRA is currently undertaking regulatory reviews in a number of areas, including: - Finalisation of Basel III - APRA is still finalising rules for Australian banks to ensure that their capital levels can be considered 'unquestionably strong"¹ - In Dec 19, APRA noted that it is giving consideration to the introduction of a non-zero default level for the countercyclical capital buffer (CCYB), as part of its broader reforms to the ADI capital framework² - In Dec 19, APRA released final standards on Operational Risk (APS 115), with the key update to the Jun 19 draft standards being confirmation of a 1 Jan 21 implementation date³ - In Oct 19, APRA released its draft standards relating to APS 111, including changes to the capital treatment of investments in banking and insurance subsidiaries, with implementation from 1 Jan 21. -In Sep 19, APRA commenced a second consultation on capital calculation and risk management requirements relating to Interest Rate Risk in the Banking Book5 - Loss-absorbing capacity (LAC) - APRA released a 'response to submissions' paper in Jul 19 outlining its approach for LAC to support the orderly resolution of Australian ADIs6 - APRA has confirmed that MBL will be subject to additional LAC requirements, consistent with the approach for the major banks In Jan 19, the Basel Committee on Banking Supervision (BCBS) released revisions to the market risk framework7, with implementation from 1 Jan 22. APRA is yet to release draft standards In Nov 18, APRA released draft prudential standards on its implementation of a minimum requirement for the leverage ratio of 3.5% expected to be effective from 1 Jan 228. MBL's APRA leverage ratio was 5.3% at 31 Dec 19 In Aug 18, APRA released a discussion paper setting out potential options to improve the transparency, international comparability and flexibility of the capital framework. The proposals are not intended to change the amount of capital that ADIs are required to hold⁹ • As previously noted, APRA is in discussions with Macquarie on resolution planning and intragroup funding. These discussions are progressing and Macquarie will continue working on these initiatives in consultation with APRA. • Based on the current information available, it is Macquarie's expectation that it will have sufficient capital to accommodate likely additional regulatory Tier 1 capital requirements as a result of the above changes, noting that some of them are at an early stage of review and hence the final impact is uncertain • In Jul 19, APRA released a draft prudential standard CPS 511 aimed at clarifying and strengthening remuneration requirements in APRA-regulated entities. A three-month consultation period closed 23 Oct 2019 during which Macquarie lodged its submission. APRA is yet to release final prudential standards ⚫ In Jan 20, consistent with the Royal Commission recommendations, Federal Treasury released a proposals paper outlining its plan to extend BEAR to a new regime, FAR (Financial Accountability Regime) to include all APRA regulated entities. In a similar way to BEAR impacting ADIS, FAR will add a personal accountability regime to insurers and responsible superannuation entities. Treasury has commenced the consultation process and called for submissions by 14 Feb 2020. Macquarie is participating in the process and will make a submission O MACQUARIE 1. 'Revisions to the capital framework for ADIs'; 14 Feb 18; 'APRA responds to first phase of consultation on revisions to ADI capital framework'; 17 Jun 19. 2. 'APRA flags setting countercyclical capital buffer at non-zero default level'; 11 Dec 2019. 3. 'APRA finalises updated prudential standard on operational risk requirements for ADIs', 11 Dec 2019. 4. 'Revisions to APS 111 Capital Adequacy: Measurement of Capital'; 15 Oct 19. 5. 'Response to submissions: Interest rate risk in the banking book for authorised deposit-taking institutions'; 4 Sep 19. 6. 'Response to submissions - loss-absorbing capacity'; 9 Jul 19. 7. 'Minimum capital requirements for market risk'; 14 Jan 19. 8. 'Draft Prudential Standard APS 110 Capital Adequacy' and 'Response to submissions: Leverage ratio requirement for ADIs'; 27 Nov 18. 9. 'Improving the transparency, comparability and flexibility of the ADI capital framework'; 14 Aug 18. 22 22#23Macquarie | Presentation to Investors and Analysts I macquarie.com Regulatory update Overview of Macquarie Operating Groups 3Q20 Update Outlook Appendix O • As previously stated, Macquarie does not believe that the UK's withdrawal from the European Union (EU) will be a material event for the Group MACQUARIE Brexit • Macquarie now has all its required licences to carry on regulated activity in Europe ° • Macquarie has a longstanding and deep commitment to the UK as the hub for the EMEA region's operations and this will continue to be the case. Macquarie has been in the UK for 30 years with approximately 2,000 staff based there as at 31 Dec 2019 Many of Macquarie's EMEA business lines have successfully built out from a strong UK hub to create a meaningful presence across continental Europe Germany • Macquarie continues to cooperate with German authorities in relation to an historical German lending transaction in 2011 • As indicated previously, the industry-wide investigation relating to dividend trading continues and Macquarie has been responding to requests for information about its activities • As part of their industry-wide investigation, the authorities have recently designated as suspects approximately 60 current and former Macquarie staff in relation to historical short selling-related activities, most of whom are no longer at Macquarie and some of whom were already named in relation to the 2011 lending matter, including the MGL CEO • The total amount at issue is not material and MGL has provided for the matter. We note that no current staff members have been interviewed to date 23 23#24Macquarie | Presentation to Investors and Analysts I macquarie.com Overview of Macquarie Operating Groups 3Q20 Update Outlook Appendix Macquarie's approach to risk management Strong focus on business accountability and risk ownership Stable and robust core risk management principles Supported by our longstanding approach to establishing and maintaining an appropriate risk culture Ownership of risk at the business level Understanding worst case outcomes O MACQUARIE Our approach is consistent with the 'three lines of defence' model with clear accountability for risk management The three lines of defence model, which is a widely adopted standard across the industry, sets risk ownership responsibilities functionally independent from oversight and assurance. Line 1 Line 2 Independent sign-off by Risk Management Group Line 3 Primary responsibility for risk management lies with the business. The Risk Management Group (RMG) forms the second line of defence and independently assesses material risks. Internal Audit provides independent and objective risk-based assurance on the compliance with, and effectiveness of, Macquarie's financial and risk management framework. Principles stable for 30+ years 24 14#25Macquarie | Presentation to Investors and Analysts I macquarie.com Overview of Macquarie Operating Groups 3Q20 Update Outlook Appendix Environmental, Social and Governance (ESG) O MACQUARIE Macquarie's ESG commitment reflects our responsibility to clients, shareholders, communities, our people and the environment in which we operate ESG Scope Building on our principles of opportunity, accountability and integrity, Macquarie's ESG approach is structured around focus areas which reflect the risks and opportunities identified by the business and the issues of interest to our stakeholders • • • . Environment Investing in sustainability solutions and supporting the global energy transition Actively managing environmental risks including climate change risks Engaging in climate leadership initiatives such as GCA and CFLI1 Supporting TCFD, UN PRI, CDP, RE100 and other external ESG standards² Promoting sustainable workplaces 22GW+ of renewable energy assets in Social Investing in social infrastructure Actively managing social risks including human rights and modern slavery risk Providing a diverse, inclusive workplace Improving work health and safety performance across Macquarie and Macquarie-managed assets Engaging Macquarie and its staff in the wider community Extended vulnerable client support measures Environmental and Social Risk policy operation and under development or construction Inaugural £500m green loan to finance renewable energy, energy efficiency, waste management, green buildings and clean transportation projects ~100m people utilise Macquarie- managed essential services daily FY19 highlights 50/50 representation of males and females in Macquarie's Intern and Graduate programs • Governance Over 4,000 classroom events and 300,000 online courses and knowledge tests delivered to our staff Strong corporate governance Ethical conduct by staff Customer advocacy Whistleblowing Anti bribery and anti corruption Anti money laundering Managing conflicts of interest Cyber security and data privacy Dealing with 3rd parties and suppliers Reporting transparently 450+ transactions and relationships assessed under our Environmental and Social Risk Policy Top 3 rating for Australian ESG research by Australian Institutional Investors 1. GCA: Global Commission on Adaptation; CFLI: Climate Finance Leadership Initiative. 2. TCFD: Taskforce on Climate-related Financial Disclosures; UN PRI: United Nations Principles for Responsible Investment. CDP: Carbon Disclosure Project. 25#26DEL 1788 02 Operating Groups O MACQUARIE 2019#27Macquarie | Presentation to Investors and Analysts I macquarie.com Overview of Macquarie Operating Groups 3Q20 Update Outlook Appendix About Macquarie Annuity-style activities Annuity-style Net Profit Contribution Macquarie Asset Management (MAM) Top 501 global specialist asset manager with $A587.5b2 of assets under management, diversified across regions, products, asset classes and investor types Provides investment solutions to clients across a range of capabilities, including infrastructure, renewables, real estate, agriculture, transportation, equities, fixed income, private credit and multi-asset solutions Banking and Financial Services (BFS) Macquarie's retail banking and financial services business with total BFS deposits³ of $A57.7b2, Australian loan and lease portfolio of $A72.2b2 and funds on platform of $A91.6b2 Provides a diverse range of personal banking, wealth management, business banking and vehicle finance products and services to retail clients, advisers, brokers and business clients -60% . Markets-facing activities Markets-facing Net Profit Contribution Commodities and Global Markets (CGM) Specialised and Asset Finance delivers a diverse range of tailored finance solutions globally across a variety of industries and asset classes Commodity Markets - lending and financing provides clients with loans and working capital finance across a range of commodity sectors including metals, energy and agriculture Integrated, end-to-end offering across global markets including equities, fixed income, foreign exchange, commodities and technology, media and telecoms Provides clients with risk and capital solutions across physical and financial markets • Diverse platform covering more than 25 market segments, with more than 200 products • Ο MACQUARIE ~40% Macquarie Capital (MacCap) Global capability in: Advisory and capital raising services, providing clients with specialist expertise, advice and flexible capital solutions across a range of sectors and investing alongside partners and clients, across the capital structure Infrastructure, green and conventional energy, focusing on utilising its balance sheet to construct assets, build businesses and create platforms across development, construction and operational phases 1H20 Net Profit Contribution MAM BFS CGM ~39% -13% ~8% CGM MacCap -32% -8% Net profit contribution is management accounting profit before unallocated corporate costs, profit share and income tax. All numbers have been reclassified to reflect the reorganisation between Operating Groups effective 1 Jul 19 and 1 Sep 19. Principal Finance is now classified under markets-facing activities within MacCap following the change in nature of the business and consolidating all principal investing activity. 1. P&I Largest Money Managers 2019. 2. As at 31 Dec 19. 3. BFS deposits exclude corporate/wholesale deposits. 4. The Australian loan and lease portfolio comprises residential mortgages, loans to Australian businesses, vehicle finance, and credit cards. 5. Funds on platform include Macquarie Wrap and Vision. 6. Includes general plant & equipment. 27#28Macquarie | Presentation to Investors and Analysts I macquarie.com Macquarie Asset Management Actively manages funds for investors across multiple asset classes FY19 Net profit contribution* $A1,872 million 1,700+ people 19 markets ▼3% on FY18 150+ infrastructure and real assets1 MIRA $A137.5b Equity under management $A5.5b 3Q20 Equity raised $A7.2b 3Q20 Equity invested $A21.1b Equity to deploy³ MIM $A384.2b MACQUARIE Assets under management <-80% of all assets under management outperforming respective benchmarks on a three-year basis Top 50 US active mutual fund manager⁹ Net profit contribution $A587.5 billion 31%* assets under management FY19 AWARDS EREAL IPER ASSETS # 1 Top 75 Infrastructure Investment Manager³ ASIAN AWARDS TRIPLEA Korea M&A Deal of the Year - Acquisition of ADT Caps4 TMTFinance Telecom M&A Deal of the Year 2018 Acquisition of TDC5 WINNER INVESTMENT OF THE YEAR 2019 Investment Manager of the Year, 2019- MIM6 TOP 10 Barron's Fund Families 10-year relative performance? * Based on FY19 net profit contribution from operating groups as reported on 1 Nov 19 and been restated for business reorganisations affecting Macquarie Asset Management, Corporate and Asset Finance, Commodities and Global Markets and Macquarie Capital that have occurred since 3 May 19. 1. Excludes real estate assets at 30 September 2019 2. Excludes GLL and Macquarie Capital real estate business. 3. IPE Real Assets (July/August 2019), measured by infrastructure assets under management. 4. The Asset Country Awards 2018, Best Deals - North Asia. 5. TMT Finance M&A Awards 2018. 6. 2019 Investment Manager of the Year in Australia by the Financial Standard Investment Leadership Awards. 7. Delaware FundsⓇ by Macquarie family of funds ranked 38 out of 57 for the one-year; 23 out of 55 for the five-year; and 5 out of 49 for the 10-year (2018). 8. As at 31 December 2019. 9. At 28 31 December 2018 Morningstar Fund family AUM (excludes passive/index funds).#29Macquarie | Presentation to Investors and Analysts I macquarie.com Overview of Macquarie Operating Groups 3Q20 Update Outlook Appendix Macquarie Asset Management Actively manages funds for investors across multiple asset classes Net Profit Contribution 1,2 ($Am) Base Fees2 ($Am) AUM ($Ab) O MACQUARIE 1,778 1,800 600.0 587.5 2,000 1,872 1,600 1,536 1,535 1,568 1,800 1,644 1,685 1,538 1,600 1,400 550.0 542.7 1,400 1,200 1,200 1,122 1,000 1,000 800 950 495.1 500.0 484.0 480.0 476.9 800 600 600 450.0 400 400 200 200 0 400.0 FY16 FY17 FY18 FY19 FY20 FY16 FY17 FY18 FY19 FY20 Mar 15 Mar 16 Mar 17 Mar 18 Mar-19 Dec-19 1H 2H 1. Net profit contribution is management accounting profit before unallocated corporate costs, profit share and income tax. 2. Numbers as reported at half year results announcement on 1 Nov 19 and have not been restated prior to FY19 for business reorganisations affecting Macquarie Asset Management, Corporate and Asset Finance, Commodities and Global Markets and Macquarie Capital that have occurred since 3 May 19. 29#30Macquarie | Presentation to Investors and Analysts | macquarie.com MIRA: Historical Income Overview of Macquarie Operating Groups 3Q20 Update Outlook Appendix MIRA performance fees and other income $Am (LHS) Average base fees (RHS)1 $Am 1,800 MIRA base fees $Am (LHS) MIRA EUM at period end ($Ab) Average performance fees (RHS)² Average other income (RHS)2,3 1,600 1,400 1,200 1,000 800 600 400 Base fees Ave: 1.0%; St dev: 0.1% Performance fees Ave: 0.5%; St dev: 0.5% Other income Ave: 0.2%; St dev: 0.4% 13 10 200 4 1 1 2 2 39 30 60 60 58 ---53. 39 36 37 O MACQUARIE % of EUM 117 2.0% 1.8% 1.6% 86 77 1.4% 66 99 67 1.2% 1.0% 0.8% 0.6% 0.4% 0.2% 0.0% FY97 FY98 FY99 FY00 FY01 FY02 FY03 FY04 FY05 FY06 FY07 FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19 1. Average base fees (%) calculated as base fees per financial year / average EUM (Invested). 2. Average performance fees and other income (%) calculated as performance fees and other income per financial year / period end EUM. 3. Other income represents net operating income less base and performance fees for each financial year and includes other income relating to certain MIRA fund assets historically included in the Corporate segment. Base fees and performance fees for real estate funds included from FY05 onwards. 30#31Macquarie | Presentation to Investors and Analysts I macquarie.com Banking and Financial Services A technology-driven Australian retail bank and wealth manager O MACQUARIE FY19 Net profit contribution* $A756 million ▲3% Personal banking Credit cards Home loans Bank accounts Wealth management Investments Financial advice Wrap on FY18 Business banking Property services Professional services Award winning digital banking offering 1 Australia's 1st open banking platform gives customers control over their data A leading Australian vehicle financier 475,000+ vehicles $A57.7 billion total BFS deposits² Australian loan and lease portfolio of $A72.2 billion² 30+ years bringing innovation and competition to Australian consumers Rebuilt our tech stack and are the first to offer lending and retail deposits on one core banking system 12%* More than 1.5 million Australian clients * Based on FY19 net profit contribution from operating groups as reported on 1 Nov 19 and been restated for business reorganisations affecting Macquarie Asset Management, Corporate and Asset Finance, Commodities and Global Markets and Macquarie Capital that have occurred since 3 May 19. 1. Winner in the 2019 Mozo Experts Choice Awards for Internet Banking and Exceptional Everyday Account / Winner in the 2018 Mozo Experts Choice Awards in the Travel Money/International Money Transfer category / Best Digital Banking Offering & Most Innovative Card Offering at 2017 Australian Retail Banking awards. 2. At 31 December 2019. BFS deposits exclude corporate/wholesale deposits. 31#32Macquarie | Presentation to Investors and Analysts I macquarie.com Overview of Macquarie Operating Groups 3Q20 Update Outlook Appendix Banking and Financial Services A technology-driven Australian retail bank and wealth manager Net Profit Contribution 1 ($Am) BFS Deposits2 ($Ab) gggg 300 200 100 10 400 ggg 700 600 500 800 350 513 756 737 60.0 55.0 50.0 45.7 44.5 45.0 40.4 40.0 35.0 385 30.0 25.0 20.0 15.0 10.0 5.0 FY16 FY17 FY18 FY19 FY20 1H 2H O MACQUARIE 80.0 Australian loan and lease portfolio³ ($Ab) 72.2 57.7 70.0 53.4 Mar 16 Mar 17 Mar 18 Mar 19 Dec 19 62.5 60.0 56.6 51.5 52.1 50.0 40.0 30.0 20.0 10.0 Mar 16 Mar 17 Mar 18 Mar 19 Dec 19 ■Australian Mortgages Business Lending Other Vehicles 1. Net profit contribution is management accounting profit before unallocated corporate costs, profit share and income tax. During 2018, vehicle finance moved from Corporate and Asset Finance to BFS as a part of a reorganisation between Operating Groups. FY18 financial results were restated to reflect this change. 2. BFS deposits exclude any Corporate/Wholesale deposit balances. 3. The Australian loan and lease portfolio comprises residential mortgages, loans to Australian businesses, vehicle asset finance, and other includes insurance premium funding and credit cards. Vehicles asset finance moved from CAF Asset Finance to BFS effective 1 Dec 2018. 32#33Macquarie | Presentation to Investors and Analysts I macquarie.com Commodities and Global Markets Provides clients with access to markets, financing, financial hedging, research and market analysis and physical execution FY19 Net profit contribution $A1,743 million 30+ years 20+ years in metals, equities, futures in agricultural markets and FX markets ▲46% on FY18 15 years in energy markets ~5,000 Unique client relationships $A8b+1 Asset finance portfolio No.2 physical gas marketer in North America² 65% O MACQUARIE Of the portfolio represents recurring income 60-70% of businesses have low correlation with each other Awarded 2019 Natural Gas/LNG House of the Year³ No.1 Futures Broker on the ASX4 28%* Market trading across 200+ products in 27+ market segments Based on FY19 net profit contribution from operating groups as reported on 1 Nov 19 and been restated for business reorganisations affecting Macquarie Asset Management, Corporate and Asset Finance, Commodities and Global Markets and Macquarie Capital that have occurred since 3 May 19. 1. As at 31 December 2019. 2. Platts Q3 CY19. 3. 2019 Energy Risk Awards. 4. Based on overall market share on ASX24 Futures volumes as at 31 Dec 19. 33#34Macquarie | Presentation to Investors and Analysts I macquarie.com Overview of Macquarie Operating Groups 3Q20 Update Outlook Appendix Commodities and Global Markets Provides clients with access to markets, financing, financial hedging, research and market analysis and physical execution Net Profit Contribution¹ ($Am) 1743 Net Operating Income² Investment and other income 2% O MACQUARIE 1,800 1,600 1,400 1,200 971 1,000 910 844 800 600 400 200 1138 FY16 FY17 FY18 FY19 FY20 1H 2H Equities 6% Credit, interest rates and foreign exchange 14% Risk management products 27% Brokerage, commission and other fee income 29% Inventory management and trading Lending & financing 6% 16% Commodities 1. Net profit contribution is management accounting profit before unallocated corporate costs, profit share and income tax. Numbers as reported at half year results announcement on 1 Nov 19 and have not been restated prior to FY19 for business reorganisations affecting Macquarie Asset Management, Corporate and Asset Finance, Commodities and Global Markets and Macquarie Capital that have occurred since 3 May 19. 2. For the full year ended 31 Mar 19, excluding impairment charges, provisions, net gains on sale and internal management (charge)/revenue, based on the Management Discussion & Analysis income classifications. 34#35Macquarie | Presentation to Investors and Analysts I macquarie.com Macquarie Capital Advises and invests alongside clients and partners to realise opportunity FY19 Net profit contribution* $A1,774 million ++ Energy Infrastructure Real estate and utilities ▲48% on FY18 Telecommunications, media and entertainment Technology Resources Industrials Financial institutions No.1 Global Infrastructure Financial adviser¹ No.1 M&A for completed deals in ANZ² Most Innovative Investment Bank for Infrastructure and Project Finance³ Asia-Pacific Clean Energy Deal of the Year (Kwinana Waste to Energy)4 Asia-Pacific Renewables Deal of the Year (Formosa 1)5 O MACQUARIE No.1 Global New Energy Finance Sponsor 10 250+ green energy projects under development or construction6 Infrastructure and Project Finance Deal of the Year 2018 (Europe) - Markbygden Ett Wind Farm7 Latin America Conventional Project Finance Deal of the Year: Norte III8 29%** $A478 billion completed deals in FY199 * Based on FY19 net profit contribution from operating groups as reported on 1 Nov 19 and been restated for business reorganisations affecting Macquarie Asset Management, Corporate and Asset Finance, Commodities and Global Markets and Macquarie Capital that have occurred since 3 May 19. 1. Inframation (CY18, by value and volume). 2. Dealogic (CY19, by volume). 3. The Banker (2018) 4. PFI (2018). 5. PFI (2018). 6. At 30 September 2019 7. The Banker (2018). 8. PFR (2018). 9. Source: Dealogic and IJGlobal for Macquarie Group completed M&A, balance sheet investments, ECM and DCM transactions converted as at the relevant report date. Deal values reflect the full transaction value and not an attributed value. 10. Bloomberg New Energy Finance Clean Energy League Tables CY19 (by volume). Macquarie Group Limited 35#36Macquarie | Presentation to Investors and Analysts I macquarie.com Overview of Macquarie Operating Groups 3Q20 Update Outlook Appendix O Macquarie Capital Advises and invests alongside clients and partners to realise opportunity; develops and invests in infrastructure and energy projects Net Profit Contribution¹ ($Am) Income by region² Regulatory capital ($3.7b)³ MACQUARIE 1,800 1,600 1,400 1,200 1,000 800 700 600 483 451 400 200 1,774 Americas 25% EMEA 31% 223 FY16 FY17 FY18 FY19 FY20 ■1H 2H 4% ■Real Estate 19% ■Other - primarily co-investment 15% Australia 42% 34% Asia 2% alongside financial sponsor clients ■Technology ■Green Energy Infrastructure ■Conventional Energy 8% 3% ■Debt 17% 1. Net profit contribution is management accounting profit before unallocated corporate costs, profit share and income tax. Numbers as reported at half year results announcement on 1 Nov 19 and have not been restated prior to FY19 for business reorganisations affecting Macquarie Asset Management, Corporate and Asset Finance, Commodities and Global Markets and Macquarie Capital that have occurred since 3 May 19. 2. Income by region reflects FY19 net operating income excluding internal management revenue/(charge). 3. As at 30 September 2019. 36#37DEL 1788 03 3Q20 update O MACQUARIE 2019#38Macquarie | Presentation to Investors and Analysts I macquarie.com Overview of Macquarie Operating Groups 3Q20 Update Outlook Appendix 3Q20 Overview Satisfactory trading conditions in 3Q20 across the Group Macquarie's annuity-style businesses' (MAM and BFS) combined 3Q20 net profit contribution¹ up on prior corresponding period (pcp) (3Q19) - FY20 year to date (YTD)² net profit contribution up on FY19 YTD2 mainly due to: higher base and performance fees in MAM; and continued volume growth partially offset by margin pressure in BFS. Macquarie's market-facing businesses' (CGM and MacCap) combined 3Q20 net profit contribution significantly down on pcp FY20 YTD² net profit contribution down on FY19 YTD² primarily due to: significantly lower investment-related income in MacCap compared to a strong pcp that benefited from large asset realisations; partially offset by stronger activity across most of the businesses in CGM. 1. Net profit contribution is management accounting profit before unallocated corporate costs, profit share and income tax. 2. YTD refers to the nine months to 31 Dec for the relevant year. 38 Ο MACQUARIE#39Macquarie | Presentation to Investors and Analysts I macquarie.com Overview of Macquarie Operating Groups 3Q20 Update Outlook Appendix O 3Q20 Overview Annuity-style businesses • Macquarie Asset Management 39% 1H20 contribution¹ AUM of $A587.5b at Dec 19, up 5% on Sep 19 MIM: $A384.2b in AUM, up 6% on Sep 19, primarily driven by the acquisition of the assets related to the mutual fund management business of Foresters Investment Management Company Inc. and market movements, partially offset by foreign exchange MIRA: $A137.5b in EUM², up 2% on Sep 19. In 3Q20, $A5.5b in new equity raised, $A7.2b of equity invested and $A5.5b of asset divestments. $A21.1b of equity to deploy at Dec 19 Macquarie entered into a sales agreement with Sunsuper to sell a 25% stake of Macquarie AirFinance in Dec 19 Banking and Financial Services 13% 1H20 contribution1 • Total BFS deposits³ of $A57.7b at Dec 19, up 3% on Sep 19 MACQUARIE Australian mortgage portfolio of $A48.6b at Dec 19, up 11% on Sep 19 Funds on platform of $A91.6b at Dec 19, flat on Sep 19 Business banking loan portfolio of $A8.9b at Dec 19, up 4% on Sep 19 Australian vehicle finance portfolio of $A14.2b at Dec 19, down 3% on Sep 19 1. Based on 1H20 net profit contribution from operating groups as reported on 1 Nov 19. Net profit contribution is management accounting profit before unallocated corporate costs, profit share and income tax 2. MIRA's total EUM 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 39 businesses. 3. BFS deposits exclude corporate/wholesale deposits. 4. Funds on platform include Macquarie Wrap and Vision.#40Macquarie | Presentation to Investors and Analysts | macquarie.com Overview of Macquarie Operating Groups 3Q20 Update Outlook Appendix O MACQUARIE 3Q20 Overview Markets-facing businesses Commodities and Global Markets 40% 1H20 contribution¹ • Strong contribution from client hedging and trading opportunities across the commodities platform, particularly from Global Oil, North American Gas & Power, EMEA Gas & Power, Metals and Agriculture businesses • Continued strong customer activity in FX across all regions Ongoing strength in ANZ and US Futures driven by customer activity • Consistent performance from asset finance portfolio on pcp, primarily from the Technology, Media and Telecoms (TMT) leasing business and continued strong performance from the UK energy meters business • Maintained ranking as No. 2 physical gas marketer in North America ⚫ No 1 Futures Broker on the ASX² • • Awarded 2019 Natural Gas/LNG House of the Year³ Macquarie Capital 8% • 1H20 contribution1 109 transactions valued at $A76.4b4 completed globally, up on prior period and down on a strong pcp • Maintained No. 1 in ANZ for Completed and Announced M&A5 • • Fee revenue up on pcp across advisory, DCM and ECM Investment-related income significantly down on a particularly strong pcp that benefited from large asset realisations including Quadrant, PEXA and Energetics Transaction Highlights • Sole financial advisor to Alaska National Insurance Company, a leading specialty insurer focused on workers compensation, on its sale to CopperPoint Insurance Companies Strong principal finance lending activity in Q3 with $A1b committed in new primary debt financings, weighted towards bespoke originations, provided to clients globally • Sole financial advisor and lead equity sponsor for the Europe Transport Deal of the Year 6, the £1bn Silvertown Tunnel PPP project. The project will be the first new road crossing of the River Thames in the last 30 years and the largest UK transport PPP in the past 10 years • Formosa 2, a ~$2USb offshore wind project reached Financial Close which, once complete, will generate 376MW to support approximately 380,000 Taiwanese households while displacing around 18,750kt CO2e over its lifetime • No. 1 Global New Energy Finance Sponsor? 1. Based on 1H20 net profit contribution from operating groups as reported on 1 Nov 2019. Net profit contribution is management accounting profit before unallocated corporate costs, profit share and income tax. 2. Based on overall market share on ASX24 Futures volumes as at 31 Dec 19. 3. 2019 Energy Risk Awards. 4. Dealogic and IJGlobal for Macquarie Group completed M&A, investments, ECM and DCM transactions converted as at 31 Dec 2019. Deal values reflect the full transaction value and not an attributed value. 5. Dealogic & Refinitiv 1 Jan - 31 Dec 2019 (by volume). 6. Project Finance International Awards 2019. 7. Bloomberg New Energy Finance Clean Energy League Tables CY19 (by volume). 40 40#41DEL 1788 04 Outlook © MACQUARIE 2019#42• Macquarie | Presentation to Investors and Analysts I macquarie.com Overview of Macquarie Operating Groups 3Q20 Update Outlook Appendix Factors impacting short-term outlook Non-Banking Group Banking Group Annuity-style businesses Macquarie Asset Management (MAM) Base fees expected to be up on FY19 Combined performance fees, investment-related income (net of impairments) and net operating lease income expected to be broadly in line Banking and Financial Services (BFS) . Higher deposit, loan portfolio and platform volumes Competitive dynamics to drive margin pressure Compensation ratio expected to be consistent with historical levels Banking Non-Banking Group Group Corporate Markets-facing businesses Macquarie Capital (MacCap) Assume market conditions broadly consistent with FY19 Investment-related income will be down on a particularly strong FY19 Commodities and Global Markets1 (CGM) Strong customer base expected to continue to drive consistent flow across Commodities, Fixed Income, Foreign Exchange and Futures Consistent contribution from Specialised and Asset Finance linked to stable balance sheet Business benefitted from strong market conditions across the commodities platform YTD, which have not historically persisted Based on present mix of income, the FY20 effective tax rate is expected to be broadly in line with FY19 1. Note certain assets of the Credit Markets business, certain activities of the Cash Equities business and the Commodity Markets and Finance business, and some other less financially significant activities are undertaken from within the Non-Banking Group. 42 42 O MACQUARIE#43Macquarie | Presentation to Investors and Analysts | macquarie.com Short-term outlook . Overview of Macquarie Operating Groups 3Q20 Update Outlook Appendix O While the impact of future market conditions makes forecasting difficult, we continue to expect the Group's result for FY20 to be slightly down on FY19 Our short-term outlook remains subject to a range of factors including: The completion rate of transactions and period-end reviews MACQUARIE - Market conditions and the impact of geopolitical events - The impact of foreign exchange - Potential regulatory changes and tax uncertainties Geographic composition of income 43#44Macquarie | Presentation to Investors and Analysts I macquarie.com Overview of Macquarie Operating Groups 3Q20 Update Outlook Appendix Medium-term • • Macquarie remains well-positioned to deliver superior performance in the medium term Deep expertise in major markets • • • Build on our strength in business and geographic diversity and continue to adapt our portfolio mix to changing market conditions Annuity-style income is primarily provided by two Operating Groups' businesses which are delivering superior returns following years of investment and acquisitions Macquarie Asset Management and Banking and Financial Services Two markets-facing businesses well positioned to benefit from improvements in market conditions with strong platforms and franchise positions Commodities and Global Markets and Macquarie Capital Ongoing program to identify cost saving initiatives and efficiency Strong and conservative balance sheet Well-matched funding profile with minimal reliance on short-term wholesale funding Surplus funding and capital available to support growth Proven risk management framework and culture O MACQUARIE 44#45Banking Group Group Non-Banking Medium term Macquarie | Presentation to Investors and Analysts I macquarie.com Overview of Macquarie Operating Groups 3Q20 Update Outlook Appendix Annuity-style businesses Macquarie Asset Management (MAM) Leading specialist global asset manager, well-placed to grow assets under management through its diversified product offering, track record and experienced local investment teams • Banking and Financial Services (BFS) Strong growth opportunities through intermediary and direct retail client distribution, platforms and client service Opportunities to increase financial services engagement with existing business banking clients and extend into adjacent segments Modernising technology to improve client experience and support growth Banking Group Non-Banking Group Markets-facing businesses Macquarie Capital (MacCap) Positioned to benefit from any improvement in M&A and capital markets activity Continues to tailor the business offering to current opportunities, market conditions and strengths in each sector and region Opportunities for project development and balance sheet investment by the group and in support of partners and clients subject to market conditions Commodities and Global Markets1 (CGM) Opportunities to grow commodities business, both organically and through acquisition Development of institutional and corporate coverage for specialised credit, rates and foreign exchange products Tailored finance solutions globally across a variety of industries and asset classes Growing the client base across all regions Leveraging a strong market position in Asia-Pacific through investment in the equities platform Continued investment in asset finance portfolio 1. Note certain assets of the Credit Markets business, certain activities of the Cash Equities business and the Commodity Markets and Finance business and some other less financially significant activities are undertaken from within the Non-Banking Group. 45 O MACQUARIE#46DEL 1788 05 Appendix O MACQUARIE 2019#47DEL 1788 A Select slides from Macquarie's result announcement for the half- year ended 30 September 2019 O MACQUARIE 2019#48Macquarie | Presentation to Investors and Analysts I macquarie.com Income statement key drivers Overview of Macquarie Operating Groups 3Q20 Update Outlook Appendix 1H20 2H19 1H19 • $Am $Am $Am Net interest and trading income 2,417 2,322 2,229 Fee and commission income 2,874 2,865 2,661 Net operating lease income 461 489 461 Share of net (losses)/profits of associates and joint (49) (63) 7 ventures Credit and Other impairment charges (139) (476) (76) Investment income 670 1,617 485 Other income Net operating income Employment expenses Brokerage, commission and trading-related expenses 86 170 63 6,320 6,924 5,830 (2,776) (2,763) (2,454) (482) (561) (579) • Other operating expenses (1,222) (1,438) (1,092) Total operating expenses (4,480) (4,762) (4,125) Operating profit before tax and non-controlling 1,840 2,162 1,705 interests Income tax expense (376) (505) (374) Non-controlling interests (7) 15 (21) Profit attributable to MGL shareholders 1,457 1,672 1,310 O MACQUARIE • . • Net interest and trading income of $A2,417m, up 8% on 1H19 primarily due to increased contribution across CGM's commodities platform driven by client hedging activity in Risk management products, the timing of income recognition on Oil and Gas storage and transport contracts partially offset by reductions in North American Gas Inventory management and trading following a strong prior corresponding period Fee and commission income of $A2,874m, up 8% on 1H19 - Higher performance fees with 1H20 benefiting from a broad range of MIRA-managed funds, managed accounts and co-investors including MEIF1, MEIF3, MIP I, MIP II, GIF II and GIF III Increase in base fees due to foreign exchange movements and investments made by MIRA-managed funds and mandates, partially offset by asset realisations in MIRA-managed funds and net flows in MIM Lower debt capital markets fee income, down on a strong 1H19, partially offset by higher mergers and acquisitions fee income in Macquarie Capital Share of net losses of associates and joint ventures of $A49m, as compared with profits of $A7m in 1H19, primarily driven by investments in green energy projects in the development and construction phases, including a small number of underperforming assets in Macquarie Capital Higher Credit and Other impairment charges compared to 1H19, primarily related to a small number of underperforming investments in Macquarie Capital Investment income of $A670m, up 38% on 1H19, primarily due to higher revenue from asset realisations in Europe, particularly in the green energy sector in Macquarie Capital Total operating expenses of $A4,480m, up 9% on 1H19 mainly due to unfavourable foreign exchange movements, higher share-based payments expense due to accelerated amortisation of prior years' equity awards to retiring key management personnel and increased performance- related profit share. In addition, average headcount increased in central service groups to support business growth, technology projects and ongoing regulatory compliance. This was partially offset by a decrease in Brokerage, commission and trading-related expenses primarily due to reductions across equities markets in CGM 48#49Macquarie | Presentation to Investors and Analysts I macquarie.com Overview of Macquarie Operating Groups 3Q20 Update Outlook Appendix Income statement by Operating Group NPC 2,000 $Am 1,500 272 1,000 500 1,310 274 (286) 7 (118) O MACQUARIE 1,457 KEY DRIVERS ⚫ MAM: Increased performance fees and base fees, partially offset by higher operating expenses ⚫ BFS: Growth in total BFS deposits, the Australian loan portfolio and funds on platform partially offset by a decrease in Australian vehicle finance portfolio and the impact of realigning the wealth advice business to focus on the high net-worth segment • CGM: Strong contribution from the commodities platform driven by increased client hedging activity and timing of income recognition on storage and transport agreements, improved foreign exchange, interest rates and credit results, partially offset by challenging market conditions and reduced opportunities in Cash Equities, and higher operating expenses ⚫ MacCap: Fee income down on a strong 1H19. Investment-related income slightly down with higher revenue from asset realisations offset by lower interest income from the debt portfolio and higher share of net losses of associates and joint ventures. Higher impairment charges due to a small number of underperforming investments and higher operating expenses ⚫ Corporate: Higher share-based payments expense and higher performance-related profit share 0 1H19 MAM BFS CGM MacCap NPAT Corporate (excl. tax expense) Tax expense 1H20 NPAT 49#50Macquarie | Presentation to Investors and Analysts I macquarie.com Overview of Macquarie Operating Groups 3Q20 Update Outlook Appendix Macquarie Asset Management Increased base and performance fees, partially offset by higher operating expenses $Am 1,400 1,200 1,000 800 800 600 850 400 200 71 264 41 29 (24) (72) (8) O MACQUARIE 1,122 KEY DRIVERS ⚫ Base fees up due to: - Foreign exchange movements and investments made by MIRA-managed funds and mandates - Partially offset by asset realisations in MIRA-managed funds and net flows in MIM ⚫ Higher performance fees with 1H20 benefiting from a broad range of MIRA-managed funds, managed accounts and co-investors including MEIF1, MEIF3, MIP I, MIP II, GIF II and GIF III • Higher investment-related and other income due to gains on sale and reclassification of investments • Lower net operating lease income primarily driven by the disposal of Macquarie AirFinance to a newly-formed joint venture with PGGM, partially offset by the acquisition of rotorcraft assets during the prior period ⚫ Higher operating expenses driven mainly by foreign exchange movements and the full-period impact of the GLL and Valuelnvest acquisitions completed in the prior corresponding period 0 1H19 NPC Base fees Performance fees Investment-related Net operating lease income and other income¹ income Operating expenses Other 2 1H20 NPC 1. Includes net income on equity and debt investments, share of net profits of associates and joint ventures and other income. 2. Other includes net interest and trading expense, other fee and commission income, credit and other impairments and non-controlling interests. 50 60#51Macquarie | Presentation to Investors and Analysts I macquarie.com MAM AUM movement Overview of Macquarie Operating Groups 3Q20 Update Outlook Appendix Increase due to net investment by MIRA-managed funds; and positive impacts from FX and market movements offset mainly by a reduction in contractual insurance assets in MIM MIM +0.1 $Ab 600 13.0 10.2 MAM 550.0 11.9 MAM 562.0 (23.1) 500 MIRA 189.0 400 300 200 MIM 361.0 100 0 31-Mar-19 MIM FX impacts MIM market movements MIM Net flows¹ MIRA movement (see EUM)² MIRA 200.9 MIM 361.1 30-Sep-19 O MACQUARIE 1. $A23.1b of MIM net outflows were primarily driven by contractual fixed income insurance assets and other short-term fixed income allocations 2. MIRA tracks its funds under management using an EUM measure as base management fee income is typically aligned with EUM. EUM and AUM are calculated under different methodologies and as such, EUM movement is the more relevant metric for analysis purposes - refer to MIRA EUM movement on slide 26. MIRA's total EUM 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. AUM is calculated as proportional enterprise value at measurement date including equity value and net debt of the underlying assets of funds and managed assets. AUM excludes uninvested equity in MIRA. Refer MD&A s7 for further information with respect to EUM and AUM measures. 51#52Macquarie | Presentation to Investors and Analysts I macquarie.com O Overview of Macquarie Operating Groups 3Q20 Update Outlook Appendix 0.5 (2.6) 3.0 MIRA EUM movement Increase of 5% primarily due to new equity raised $Ab 140 10 130 120 110 100 127.9 90 90 80 60 5.6 70 31-Mar-19 Equity raised¹ Listed security price movements Equity returned or no longer managed 2 MACQUARIE 134.4 FX movements 3 30-Sep-19 1. Includes PGGM's 25% interest in Macquarie AirFinance following the sale to a newly-formed joint venture with PGGM. 2. Committed capital returned by unlisted funds or under mandates due to asset divestments, redemption or other capital distributions as well as capital no longer managed due to sale of management rights or expiry of asset management agreements. Includes an offset of equity managed on behalf of ALX following internalisation. 3. FX reflects the movement in EUM driven by changes in FX rates. EUM is calculated using capital commitments translated at period end FX rates. Spot FX rates are used for capital raised and returned and average FX rates are used for security price movements. 52 62#53Macquarie | Presentation to Investors and Analysts I macquarie.com Overview of Macquarie Operating Groups 3Q20 Update Outlook Appendix Banking and Financial Services Growth in BFS deposits, Australian loan portfolio and funds on platform 450 $Am 400 350 300 250 378 39 39 (15) (26) 29 (20) 29 385 200 1H19 NPC Personal Banking Business Banking Wealth Management Technology & Expenses & Other Regulatory 1H20 NPC O MACQUARIE KEY DRIVERS Higher Personal Banking income driven by a 14% growth in average mortgage volumes ⚫ Lower Business Banking income driven by increase in specific provisions offset by 13% growth in average business banking loan volumes and a 3% growth in average business deposit volumes • Lower Wealth Management fee income associated with realigning the advice business to focus on the high net- worth segment, partially offset by 3% increase in average funds on platform Higher Technology and Regulatory expenses driven by investment to support business growth and to meet regulatory requirements ⚫ Lower Expenses and Other includes lower staff numbers in Wealth Management with the advice business realigned to focus on the high net-worth segment 53#54Macquarie | Presentation to Investors and Analysts I macquarie.com Banking and Financial Services Strong growth across the portfolio 100 90 80 80 70 $Ab 60 60 50 56.2 50 53.4 40 40 43.6 44.5 45.7 38.5 30 20 30 32.7 28.7 20 10 0 Mortgages (Ihs) Data based on spot volumes at period end. 1. Includes General plant and equipment. Overview of Macquarie Operating Groups 3Q20 Update Outlook Appendix 72.2 O MACQUARIE $Ab 18 16 91.5 16.3 16.0 86.0 15.2 82.5 14.7 14 12 8.5 8.2 7.3 6.5 10 8 co 6 4 2 0 BFS deposits (Ihs) Funds on platforms (lhs) Business Banking loans (rhs) Vehicles 1 (rhs) 31-Mar-17 31-Mar-18 31-Mar-19 30-Sep-19 54#55Macquarie | Presentation to Investors and Analysts I macquarie.com Overview of Macquarie Operating Groups 3Q20 Update Outlook Appendix Commodities and Global Markets Results driven by strong performance in commodities $Am 1,400 Commodities $A243m 1,200 53 (52) (24) 54 (13) 81 1,000 175 800 600 864 400 O MACQUARIE 1,138 KEY DRIVERS • Increased net interest and trading income: - Commodities - Strong results across the commodities platform from increased client hedging activity particularly in Global Oil, North American Gas and Power and EMEA Gas and Power. Solid contribution from Agriculture, Metals and Mining Lower Lending and financing income driven by a reduction in agricultural loans and reduced activity in gas and power sectors Inventory management driven by the timing of income recognition on Oil and Gas storage and transport contracts, partially offset by reductions in North American Gas following a strong prior corresponding period driven by demand and supply factors in specific American regions - Improved foreign exchange, interest rates and credit result driven by increased client activity across platform in all regions - Increase in Equities driven by increased opportunities in Asian markets including China and improved performance in retail markets Higher operating expenses driven by expenditure on technology infrastructure as well as increased compliance and regulatory requirements, partially offset by a reduction in brokerage, commission and trading-related expenses driven by reduced turnover in equities markets 1H19 NPC Risk management products Lending and financing Inventory management and trading FX, interest rates and credit Equities Operating expenses Other 1H20 NPC 55#56Macquarie | Presentation to Investors and Analysts I macquarie.com Overview of Macquarie Operating Groups 3Q20 Update Outlook Appendix Commodities and Global Markets Growing client base Client numbers1 1,200 1,150 1,166 1,100 1,050 1,000 1,010 950 959 900 1,084 Commodities (Ihs) 1. 30 Sep 19 client numbers cover a 12 month period from 1 Oct 18 - 30 Sep 19. 1,053 1.112 Specialised & Asset Finance portfolio $Ab 1,500 10.0 O MACQUARIE 1,185 1.476 1,168 1,462 1,450 8.0 1,448 8.0 8.0 7.7 1,416 1,400 6.0 6.3 1,350 4.0 10 1,300 2.0 1,250 1,200 0.0 Financial Markets and Futures (Ihs) Cash Equities (rhs) Specialised and Asset Finance portfolio ■31-Mar-17 31-Mar-18 31-Mar-19 ■■30-Sep-19 56#57O Macquarie | Presentation to Investors and Analysts I macquarie.com Overview of Macquarie Operating Groups 3Q20 Update Outlook Appendix Macquarie Capital Results driven by lower investment-related income, lower fee and commission income, higher operating expenses and higher credit and other impairment charges 600 $Am 500 (23) (111) 400 (63) 300 200 509 (89) 100 n0 0 1H19 NPC Investment -related income 1 Fee and commission income Credit and Other impairments 223 Operating expenses 1H20 NPC MACQUARIE KEY DRIVERS ⚫ Lower investment-related income: Lower interest income from the debt portfolio Higher share of net losses of associates and joint ventures, primarily in green energy projects in the development and construction phases, including a small number of underperforming assets A change in the composition of investments in the portfolio including increased expenditure in relation to green energy projects Partially offset by higher revenue from asset realisations in Europe particularly in green energy Fee and commission income was lower with debt capital markets fee income down on a strong 1H19, partially offset by higher mergers and acquisitions fee income Higher credit and other impairment charges related to a small number of underperforming investments Higher operating expenses from additional headcount and the impact of foreign exchange movements 1. Includes net income on equity and debt investments, share of net losses of associates and joint ventures, net interest and trading expense (which represents the interest earned from debt investments and the funding costs associated with Macquarie Capital's balance sheet positions), other (expenses)/income, internal management revenue and non-controlling interests. 52 57#58Macquarie | Presentation to Investors and Analysts I macquarie.com Macquarie Capital Movement in regulatory capital 5.0 4.5 4.0 40 $Ab 3.5 3.0 3.0 2.5 2.0 20 1.5 1.0 35 0.5 Overview of Macquarie Operating Groups 3Q20 Update Outlook Appendix 1.4 (0.7) 3.7 00 0.0 31-Mar-19 Investments Realisations 30-Sep-19 ■Debt Conventional Energy Infrastructure ■Green Energy ■Technology ■Real Estate Other O MACQUARIE 58#59Macquarie | Presentation to Investors and Analysts I macquarie.com Overview of Macquarie Operating Groups 3Q20 Update Outlook Appendix Costs of compliance Total compliance spend¹ approximately $A270m in 1H20, up 15% on 1H19 O MACQUARIE • The finance industry continues to see an increase in regulatory initiatives, resulting in increased compliance requirements across all levels of the organisation 1H20 2H19 1H19 $Am $Am $Am 0 3 7 2 3 4 • 4 5 6 7 10 1 Regulatory project spend IFRS 9 OTC reform MiFID Brexit Other Regulatory Projects (e.g. Trade, Execution and Data related investments, Enterprise Data Management, Code of Banking Practice) 57 58 47 Total 70 78 64 བྱུག • Regulatory project spend increased 9% from 1H19 as a result of a number of technology projects including BFS compliance projects and the Banking Executive Accountability Regime Business as usual spend increased 17% from 1H19 from continuing spend on a range of compliance functions 1H20 2H19 1H19 Business as usual compliance spend $Am $Am $Am Financial, Regulatory and Tax Reporting, and Compliance 58 53 51 Compliance Policy and Oversight 54 44 43 AML Compliance 19 18 17 Regulatory Capital Management 12 11 10 National Consumer Credit Protection (NCCP) 4 7 8 Regulator Levies 6 5 7 Other Compliance functions (e.g. Monitoring and Surveillance, Privacy and Data Management, APRA resilience, Advice Licensee standards compliance) 47 44 35 Total 200 183 171 Total compliance spend 270 261 235 1. Excluding indirect costs. 59#60Macquarie | Presentation to Investors and Analysts I macquarie.com Overview of Macquarie Operating Groups 3Q20 Update Outlook Appendix Loan and lease portfolios¹ - funded balance sheet O MACQUARIE Operating Group Category Sep 19 $Ab Mar 19 $Ab Description Retail mortgages² 38.8 35.6 Secured by Australian residential property Business banking 9.0 8.7 BFS Vehicle finance 11.9 11.5 Secured relationship managed loan portfolio secured largely by working capital, business cash flows and real property Secured by Australian motor vehicles Total BFS 59.7 55.8 Asset Finance 8.0 7.9 Predominantly secured by underlying financed assets Finance lease assets 5.7 5.6 Operating lease assets 2.3 2.3 CGM Resource and commodities 4.5 3.3 Other 2.6 Diversified loan portfolio primarily to the resources sector that are secured by the underlying assets 2.5 Predominantly relates to recourse loans to financial institutions, as well as financing for other sectors Total CGM 15.1 13.7 Operating lease assets³ 1.6 8.9 Secured by underlying financed assets including transportation assets Structured investments 0.2 0.2 MAM Loans to retail and wholesale counterparties that are secured against equities, investment funds or cash or are protected by capital guarantees at maturity Other 0.4 0.3 Secured by underlying financed assets Total MAM 2.2 9.4 Principal finance loans 3.6 3.4 Diversified corporate and real estate lending portfolio, predominantly consisting of loans which are senior, secured, well covenanted and with a hold to maturity horizon MacCap Corporate and other lending Total MacCap 0.6 0.7 Includes diversified secured corporate lending Total loan and lease assets per funded balance sheet4 4.2 81.2 4.1 83.0 1. Loan assets are reported on a funded balance sheet basis and therefore exclude certain items such as assets that are funded by third parties with no recourse to Macquarie. In addition, loan assets at amortised cost per the statutory balance sheet of $A85.1b at 30 Sep 19 ($A78.5b at 31 Mar 19) are adjusted to include fundable assets not classified as loans on a statutory basis (e.g. assets subject to operating leases which are recorded in Property, Plant and Equipment in the statutory balance sheet). 2. Retail mortgages per the funded balance sheet of $A38.8b differs from the figure disclosed on slide 13 of $A43.6b. The funded balance sheet nets down loans and funding liabilities f non-recourse securitisation and warehouse vehicles (PUMA RMBS and SMART auto ABS) to show the net funding requirement. 3. Movement includes the disposal of Macquarie AirFinance to a newly-formed joint venture with PGGM in 1H20. 4. Total loan assets per funded balance sheet includes self-securitised assets. 60#61Macquarie | Presentation to Investors and Analysts I macquarie.com Equity investments of $A8.5b1 Overview of Macquarie Operating Groups 3Q20 Update Outlook Appendix O MACQUARIE Category Macquarie Asset Management Carrying value² Sep 19 $Ab Carrying value² Mar 19 $Ab 1.9 (MIRA) managed funds Investments held to seed new MIRA products 1.6 - and mandates Other Macquarie-managed funds 0.3 Transport, industrial and infrastructure 0.7 Telcos, IT, media and entertainment 1.0 Description 1.9 Includes Macquarie Infrastructure Corporation, Macquarie SBI Infrastructure Fund, Macquarie Infrastructure Partners 4, Macquarie Asia infrastructure Fund, Macquarie Korea Infrastructure Fund, Macquarie European Infrastructure Fund 4 Includes 75% interest in a newly-formed joint venture with PGGM to which Macquarie AirFinance was sold 0.3 Includes MIM funds as well as investments that hedge directors' profit share plan liabilities 0.6 Over 25 separate investments 0.5 Over 50 separate investments Green energy³ 1.0 1.0 Over 25 separate investments Conventional energy, resources and commodities 0.4 0.4 Over 50 separate investments Real estate investment, property and 1.0 0.7 Over 15 separate investments funds management Finance, wealth management and exchanges 0.6 0.5 Includes investments in fund managers, investment companies, securities exchanges and other corporations in the financial services industry 8.5 5.9 1. Equity investments per the statutory balance sheet of $A10.2b (Mar 19: $A6. 1b) have been adjusted to reflect the total economic exposure to Macquarie. 2. Total funded equity investments of $A8.4b (Mar 19: $A5.9b). 3. Green energy includes Macquarie's $A2.2b investment in East Anglia ONE Limited less $A1.8b which has been funded with borrowings. 61#62DEL 1788 B Detailed result commentary O MACQUARIE 2019#63Macquarie | Presentation to Investors and Analysts I macquarie.com Macquarie Asset Management Result 1H20 2H19 1H19 $Am $Am $Am Base fees Performance fees 950 899 879 546 483 282 Net operating lease income 303 335 327 Investment-related and other income1 85 163 64 Credit and Other impairment charges (5) (87) (18) Net operating income 1,879 1,793 1,534 Brokerage, commission and (127) (120) (128) • trading-related expenses Other operating expenses (628) (650) (555) • AUM ($Ab) Total operating expenses Non-controlling interests Net profit contribution² MIRA EUM ($Ab) Headcount (755) (770) (683) (2) (1) (1) 1,122 1,022 850 562.0 550.0 548.7 134.4 1,789 127.9 1,900 115.6 1,886 Overview of Macquarie Operating Groups 3Q20 Update Outlook Appendix O MACQUARIE Base fees of $A950m, up on 1H19 - Foreign exchange movements and investments made by MIRA-managed funds and mandates - Partially offset by asset realisations in MIRA-managed funds and net flows in MIM Performance fees of $A546m, up on 1H19 1H20 included performance fees from a broad range of MIRA-managed funds, managed accounts and co-investors including MEIF1, MEIF3, MIP I, MIP II, GIF II and GIF III - 1H19 included performance fees from MEIF1, MEIF3, ALX and other MIRA-managed funds, managed accounts and co-investors Net operating lease income of $A303m, down on 1H19, primarily driven by the disposal of Macquarie AirFinance to a newly-formed joint venture with PGGM, partially offset by the acquisition of rotorcraft assets during the prior period Investment-related and other income of $A85m, up on 1H19, includes gains on sale and reclassification of investments • Total operating expenses of $A755m, up 11% on 1H19 driven mainly by foreign exchange movements and the full period impact of the GLL and Valuelnvest acquisitions completed in the prior corresponding period 1. Investment-related income includes net income on equity and debt investments and share of net profits of associates and joint ventures. Other income includes other fee and commission income, net interest and trading expense, other income and internal management revenue. 2. Management accounting profit before unallocated corporate costs, profit share and income tax. 63#64Macquarie | Presentation to Investors and Analysts I macquarie.com Banking and Financial Services Result Overview of Macquarie Operating Groups 3Q20 Update Outlook Appendix O MACQUARIE 1H20 2H 19 1H19 ⚫ Net interest and trading income of $A838m, in line with 1H19 $Am $Am $Am Net interest and trading income¹ 838 844 834 Fee and commission income 226 232 244 Wealth management fee income 144 147 168 Banking and leasing fee income 82 85 76 Credit and Other impairment charges (42) (54) (28) Other (expenses)/income² (1) 30 1 Net operating income 1,021 1,052 1,051 Total operating expenses (636) (674) (673) Net profit contribution³ 385 378 378 - 14% growth in the average BFS deposit balance and 9% growth in average Australian loan and lease portfolio volumes · Partially offset by the sale of an investment in Macquarie Pacific Funding business ⚫ Fee and commission income of $A226m, down 7% on 1H19 driven by lower wealth management fee income associated with realigning the advice business to focus on the high net worth segment Credit and Other impairment charges of $A42m, up 50% on 1H19 driven by business banking loans and leasing • Total operating expenses of $A636m, down 5% on 1H19 driven by lower staff numbers in Wealth Management with the advice business realigned to focus on the high net worth segment and lower Brokerage, commission and trading-related expenses due to the sale of an investment in Macquarie Pacific Funding business, partially offset by additional investment in technology to support business growth and to meet regulatory requirements Funds on platform 4 ($Ab) 91.5 86.0 88.1 Australian loan and lease portfolio 5 ($Ab) BFS deposits ($Ab) 67.4 62.5 60.0 Headcount 56.2 2,651 53.4 49.4 2,772 2,950 1. Includes internal net interest expense and transfer pricing on funding provided by Group Treasury and deposit premium paid to BFS by Group Treasury for the generation of deposits, that are eliminated on consolidation in the Group's statutory P&L. 2. Includes share of net (losses)/profits of associates and joint ventures, internal management revenue and other income. 3. Management accounting profit before unallocated corporate costs, profit share and income tax. 4. Funds on platform includes Macquarie Wrap and Vision. 5. The Australian loan and lease portfolio comprises residential mortgages, loans to Australian businesses, vehicle finance, insurance premium funding and credit cards. 6. BFS deposits excludes corporate/wholesale deposits. 49 64#65Macquarie | Presentation to Investors and Analysts I macquarie.com Overview of Macquarie Operating Groups 3Q20 Update Outlook Appendix Commodities and Global Markets Result O MACQUARIE - Commodities income of $A1,049m, up 30% on 1H19 - Risk management products up 38% on 1H19 reflecting strong results across the commodities platform particularly in Global Oil, North American Gas and Power and EMEA Gas and Power from increased client hedging activity as a result of commodity price volatility. Solid contribution from Agriculture, Metals and Mining - Lending and financing reduced 10% driven by a reduction in agricultural loans and reduced activity in gas and power sectors - Inventory management and trading up 37% on 1H19 primarily driven by the timing of income recognition on storage and transport for Oil and Gas contract agreements partially offset by reduced contributions from North American Gas following a strong prior corresponding period driven by demand and supply factors in specific American regions Foreign exchange, interest rates and credit income of $A345m, up 19% on 1H19 driven by increased client activity across the platform in all regions 1H20 2H19 1H19 • Net interest and trading income of $A1,688m, up 24% on 1H19 $Am $Am $Am Commodities 1,049 1,177 806 Risk management products 632 621 457 Lending and financing 115 122 128 Inventory management and trading 302 434 221 Foreign exchange, interest rates and credit 345 273 291 Equities 216 79 163 Specialised and Asset Finance 78 54 97 Net interest and trading income¹ 1,688 1,583 1,357 Fee and commission income 606 611 611 Net operating lease income² 157 153 132 60 83 69 (35) (147) (18) Investment and other income³ Credit and Other impairment charges Net operating income Brokerage, commission and trading-related expenses Other operating expenses Total operating expenses Non-controlling interests Net profit contribution4 Headcount 2,476 2,283 2,151 (320) (257) (316) (1,081) (1,087) (966) (1,338) (1,403) (1,286) (1) (1) 1,138 2,816 879 2,866 864 2,786 Equities up 33% on 1H19 reflecting increased opportunities in China and improved conditions for retail products across Asia Specialised and Asset Finance interest and trading income down 20% on 1H19 driven by lower secondary income from equipment finance lease portfolio within Technology, Media and Telecoms (TMT), increased funding costs from growth in the TMT operating lease portfolio and a decline in the non-core legacy retail portfolio which is partially offset by favourable foreign exchange movement ⚫ Fee and commission income of $A606m, down 1% on 1H19 due to a reduction in brokerage due to reduced Cash Equities turnover offset by increased contribution from Index products and retail products in the technology sector Net operating lease income of $A157m, up 19% on 1H19 driven by higher secondary income from Technology, Media and Telecoms portfolio. The Energy portfolio contributes the majority of operating lease income and was stable over the period • Credit and Other impairment charges of $A35m, up 94% on 1H19 mostly due to the write-downs on specific underperforming financing facilities and impairment charges related to a small number of commodity equity positions Brokerage, commission and trading-related expenses of $A257m, down 20% on 1H19 due to a reduction in the equities sector • Total other operating expenses of $A1,081m, up 12% on 1H19, driven by expenditure on upgrading technology infrastructure and increased compliance costs as well as an increase in average headcount in comparison to prior corresponding period 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. Generated from Specialised and Asset Finance. 3. Includes net income on equity and debt investments, share of net profits of associates and joint ventures, internal management revenue/(charge) and other income. 4. Management accounting profit before unallocated corporate costs, profit share and income tax. 65#66Macquarie | Presentation to Investors and Analysts I macquarie.com Overview of Macquarie Operating Groups 3Q20 Update Outlook Appendix Macquarie Capital Result 1H20 2H19 1H19 $Am $Am $Am Fee and commission income 415 497 526 Investment-related income (ex non-controlling 421 1,467 478 interests) Investment and other income1 439 1,441 417 Net interest and trading expense² (18) 26 61 Credit and Other impairment charges (59) (179) 4 Internal management revenue³ 38 26 15 Net operating income 815 1,811 1,023 Total operating expenses (593) (569) (504) Non-controlling interests Net profit contribution4 Capital markets activity5: Number of transactions Transactions value ($Ab) Headcount 1 23 (10) 223 1,265 509 181 169 250 154 205 273 1,459 1,369 1,282 O MACQUARIE • Fee and commission income of $A415m, down 21% on 1H19 due to lower debt capital markets fee income, down on a strong 1H19, partially offset by higher mergers and acquisitions fee income • Investment-related income of $A421m, down 12% on 1H19 - Lower interest income from the debt portfolio Higher share of net losses of associates and joint ventures, primarily in green energy projects in the development and construction phases, including a small number of underperforming assets A change in the composition of investments in the portfolio including increased expenditure in relation to green energy projects Partially offset by higher revenue from asset realisations in Europe particularly in green energy • Credit and other impairment charges of $A59m, up on 1H19 due to a small number of underperforming investments • Total operating expenses of $A593m, up 18% on 1H19 due primarily driven by additional headcount and the impact of foreign exchange movements 1. Includes net income on equity and debt investments, share of net losses of associates and joint ventures and other (expenses)/income. 2. 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. 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. Source: Dealogic and IJGlobal for Macquarie Group completed M&A, investments, ECM and DCM transactions converted as at the relevant reporting date. Deal values reflect the full transaction value and not an attributed value. 66#67DEL 1788 C Glossary O MACQUARIE 2019#68O MACQUARIE Macquarie | Presentation to Investors and Analysts I macquarie.com Overview of Macquarie Operating Groups 3Q20 Update Outlook Appendix Glossary First Half ended 30 Sep 2019 1H20 CMA 1Q20 First Quarter ended 30 Jun 2019 CO2e 3Q19 Third Quarter ended 31 Dec 2018 CY18 3Q20 Third Quarter ended 31 Dec 2019 CY19 Cash Management Account Carbon dioxide equivalent Calendar Year ended 31 Dec 2018 Calendar Year ending 31 Dec 2019 ABN Australian Business Number DCM Debt Capital Markets ADI Authorised Deposit-Taking Institution DPS Dividends Per Share ALX Atlas Arteria DRP Dividend Reinvestment Plan AML Anti-Money Laundering DTA Deferred Tax Asset ANZ Australia and New Zealand ECAM Economic Capital Adequacy Model APRA Australian Prudential Regulation Authority ECM ASX Australian Stock Exchange ECS AUM Assets under Management EMEA BCBS Basel Committee on Banking Supervision EPS Earnings Per Share BCF Billion cubic feet EUM Equity Capital Markets Exchangeable Capital Securities Europe, the Middle East and Africa Equity Under Management BEAR Banking and Executive Accountability Regime FAR Financial Accountability Regime BFS Banking and Financial Services FCR Financial Crime Risk CMF Commodity Markets and Finance FTE Full time equivalent CAGR Compound Annual Growth Rate FX Foreign Exchange Capex Capital Expenditure FY16 Full Year ended 31 Mar 2016 CCB Capital Conservation Buffer FY17 Full Year ended 31 Mar 2017 CET1 Common Equity Tier 1 FY18 Full Year ended 31 Mar 2018 CFM Commodities and Financial Markets FY19 Full Year ended 31 Mar 2019 CGM Commodities and Global Markets FY20 Full Year ended 31 Mar 2020 68#69Macquarie | Presentation to Investors and Analysts I macquarie.com Overview of Macquarie Operating Groups 3Q20 Update Outlook Appendix Glossary O MACQUARIE GIFII Macquarie Global Infrastructure Fund 2 NPAT Net Profit After Tax GIG Green Investment Group GLL NPC NPP Net Profit Contribution GLL Real Estate Partners New Payments Platform NSFR G10 Group of Ten Net Stable Funding Ratio PCP HEM Household Expenditure Measure PHD IFRS International Financial Reporting Standards IT Information Technology PPE Prior corresponding period Doctor of Philosophy Property, Plant and Equipment KMGF Korea Macquarie Growth Fund PPP Public Private Partnership LBO Leveraged Buyout P&E Plant & Equipment LCR Liquidity Coverage Ratio P&L Profit & Loss LNG Liquefied Natural Gas RMG Risk Management Group M&A Mergers and Acquisitions ROE Return on Equity MacCap Macquarie Capital RWA MAM Macquarie Asset Management SA-CCR MBL Macquarie Bank Limited SAF MEREP Macquarie Group Employee Retained Equity Plan SME MGL / MQG Macquarie Group Limited SMSF MIC Macquarie Infrastructure Corporation TMT MIDIS Macquarie Infrastructure Debt Investment Solutions UK MiFID Markets in Financial Instruments Directive US MIM Macquarie Investment Management VaR Risk Weighted Assets Standardised approach for measuring counterparty credit risk exposures Specialised and Asset Finance Small and Medium Enterprise Self Managed Super Fund Technology, Media and Telecoms United Kingdom United States of America Value at Risk MIRA MMBOED MTpa MW Macquarie Infrastructure and Real Assets Million barrels of oil equivalent per day WCCL Worst Case Contingent Loss Million tonnes per Annum Mega Watt WHSE Work, Health, Safety and Environment YTD Year to Date 69#70Goldman Sachs 16th Annual Australia and New Zealand Investment Forum New York Presentation to Investors and Analysts 5-6 March 2020 Sam Dobson Head of Investor Relations DEI MACQUARIE ου 2016