Investor Presentaiton

Macquarie FY20 result announcement I macquarie.com Income statement key drivers Introduction Overview of Result Result Analysis and Financial Management. Outlook Appendices O MACQUARIE 2H20 1H20 FY20 $Am $Am $Am FY19 $Am Net interest and trading income of $A4,720m, up 4% on FY19 Net interest and trading income 2,303 2,417 4,720 4,551 Fee and commission income 2,963 2,874 5,837 5,526 Net operating lease income 284 461 745 950 Share of net profits/(losses) of associates 144 (49) 95 (56) and joint ventures Net credit impairment charges (661) (144) (805) (320) Other impairment (charges)/reversals Investment income Other income (240) 5 (235) 1,007 670 1,677 205 86 291 Net operating income 6,005 Employment expenses (2,547) Brokerage, commission and trading-related expenses Other operating expenses Total operating expenses Operating profit before tax and non- 1,614 1,840 (482) (482) (1,140) (1,362) (1,222) (2,584) (2,530) (4,391) (4,480) (8,871) (8,887) 3,454 6,320 12,325 (2,776) (5,323) (964) (232) 2,102 233 12,754 (5,217) 3,867 controlling interests Income tax expense (352) (376) (728) (879) Non-controlling interests 12 (7) 5 Profit attributable to MGL shareholders 1,274 1,457 2,731 (6) 2,982 • Lower net interest and trading expenses in MAM driven by the sale of MAF to a joint venture during the first half Higher interest and trading income in BFS mainly driven by growth in home loans partially offset by the sale of an investment in Macquarie Pacific Funding (MPF) Fee and commission income of $A5,837m, up 6% on FY19 Increase in base fees from foreign exchange movements, fees earned on the MAF joint venture, investments made by MIRA-managed funds and mandates and contributions as a result of assets acquired from Foresters during the year Lower debt capital markets and other fee income, partially offset by higher mergers and acquisitions fee income in Macquarie Capital Net operating lease income of $A745m, down 22% on FY19 primarily driven by the sale of MAF to a joint venture during the first half, partially offset by the acquisition of rotorcraft assets during the prior year in MAM Share of net profits of associates and joint ventures of $A95m, significantly up on FY19, primarily driven by the sale of a number of underlying assets within equity accounted investments and income from the MAF joint venture during the year in MAM Higher Credit and Other impairment charges recognised across the Group compared to FY19 mainly due to a deterioration in current and expected macroeconomic conditions as a result of COVID-19 Investment income of $A1,677m, down 20% on FY19, primarily due to strong asset realisations in the prior year in Macquarie Capital, partially offset by gains on sale of investments in MAM Total operating expenses of $A8,871m, in line with FY19 Higher Employment expenses due to foreign exchange movements, an increase in average headcount in central service groups and higher share-based payment expense from accelerated amortisation of prior years' equity awards to retiring key management personnel, partially offset by lower performance-related profit share expense as a result of lower Group performance and higher retention rates being applied, and a reduction in average headcount in the BFS wealth advice business Lower Brokerage, commission and trading-related expenses primarily due to Equities structural change to refocus on the Asia-Pacific region in CGM and the sale of an investment in MPF in BFS 28

View entire presentation