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Investor Presentaiton

Macquarie FY20 result announcement I macquarie.com • Introduction Overview of Result Result Analysis and Financial Management Outlook Appendices Expected Credit Loss - - key indicators O MACQUARIE Under the AASB 9 credit impairment model, losses are recognised on an Expected Credit Loss (ECL) basis. ECLS are required to incorporate Forward-Looking Information (FLI), reflecting Macquarie's view of potential future economic scenarios including a weighted baseline, upside case, and downside case Baseline Updated for impact of COVID-19 through key indicators used in modelling: gross domestic product (GDP), the unemployment rate and the level of house prices, interest rates and commodity prices - Downside a more severe and protracted COVID-19 scenario resulting from the virus taking longer to be contained Snapshot of key indicator variables Current (31 Mar - 1Q20) 30 Jun-2Q20 30 Sep - 3Q20 31 Dec 4Q20 31 Mar 1Q21 31 Mar - 1Q22 31 Mar - 1Q23 Baseline Australia Real GDP Growth (indexed at 100 = Dec 19) Australia Unemployment Rate 100 91 95 97 98 102 105 5.4% 8.5% 8.8% 8.3% 7.5% 6.1% 5.5% Australia Property Prices (indexed at 100 = Dec 19) 100 85 87 97 101 108 113 US Real GDP Growth (indexed at 100 = Dec 19) 99 90 94 96 97 99 101 US Unemployment Rate 3.8% 14.0% 11.0% 10.0% 9.8% 8.8% 7.7% Euro Area Real GDP (indexed at 100 = Dec 19) Euro Area Unemployment Rate 96 87 91 93 95 97 98 7.5% 12.0% 11.5% 10.6% 9.8% 8.0% 7.0% Downside Australia Real GDP Growth (indexed at 100 = Dec 19) Australia Unemployment Rate 100 91 91 91 94 96 98 5.4% 8.5% 10.0% 10.4% 10.9% 10.1% 7.1% Australia Property Prices (indexed at 100 = Dec 19) 100 85 77 74 71 98 109 US Real GDP Growth (indexed at 100 = Dec 19) 99 90 90 90 93 97 99 US Unemployment Rate 3.8% 14.0% 17.2% 15.1% 13.2% 10.5% 8.0% Euro Area Real GDP (indexed at 100 = Dec 19) Euro Area Unemployment Rate 96 87 87 87 90 94 95 7.5% 12.0% 14.5% 15.5% 14.1% 9.3% 8.2% Further detail on the scenarios used for the Expected Credit Loss are contained in note 12 of the financial statements. 81
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