Tim Bishop Presentation

8/6/2019 Tim Bishop Presentation

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Macquarie in the Americas

Macquarie Group LimitedOperational Briefing8 February 2011 Presentation to Investors and Analysts

Tim BishopCountry Head - US


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Diversified group-wide capabilities

Income1 by Source - 6 months to 30 Sep 10

The American businesses contributed 27% of Macquaries total income in 1H11

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Institutional and retailcash equities

Equity derivatives

M&A and advisory income

Asset and equity investments

Commodities, resources andforeign exchange

Lending, leasing, fixed incomeand margin related income

Funds management

Macquarie Group worldwide Americas

1. Operating income before writedowns, impairments, equity accounted gains/(losses) and one-off items.

13%

34%

15%

14%

24%18%

5%

20%

9%11%

9%

28%


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Positioning for success in the Americas

A hybrid approach

Boutique / Independent Firms

Narrow product suite

Restricted access to capital

Limited international coverage

Limited scale

Bulge Bracket Banks

League table focusPredominantly focused on large cap

corporates and financial sponsors

Full product suite

Leveraging Macquaries corestrengths

Leading Asia-Pacific presence

Strong sector focus, deep relationships

Global platform strength and scale

Strong balance sheetEntrepreneurial approach, capital partnering

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Macquarie opportunity


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Bringing specialist expertise and a differentiated

approach to target markets

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Target Markets

Corporate Advisory

Combining focused client coverage withflexibility to respond to opportunities

Leveraging experience in six keysectors

Leasing and Lending

Primary loan origination leveraging ourhold capabilities

Customised bilateral/club lending andfull service asset finance

Commercial mortgage financing

Institutional and Retail Cash Equities

Equities underwriting and distribution capabilities

Strong mid-market coverage, but not at expense

of large cap

Comprehensive institutional distribution platform

Canadian retail distribution platform

Commodities

Deep sector expertise in energy, metals &mining and agriculture

Significant and growing physical presence

Ability to deploy balance sheet across thecapital structure

Agricultural OTC products in North and LatinAmerica

Funds Management

Global specialised asset management expertise,consistent with Macquaries core strengths

Deep institutional relationships

Debt Capital Markets and Fixed Income

Senior secured and unsecured debt underwritingand distribution capabilities

Full service fixed income sales and trading withfocus on non-investment grade and distressedcredit and Commercial Mortgage-BackedSecurities


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Growing in the Americas

Funds management

Funds management presence established in New York, Los Angeles and Toronto

Hedge fund incubation commenced through establishment of JV with MDSass1

Substantially broadened US based capability withacquisition of Delaware Investments

Canadian listed closed end funds launched

Pre-2007 2007 2008 2009 2010 2011

First peso-denominated Mexican infrastructure fund launched

Infrastructure funds business launched in Canada followed by the US

1. MDSass is a New York-based investment management firm. 2. Within the Americas. 6

AUM of $A159b (30 Sep 10), up 248% on pcp2


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Institutional and retail cash equities1

Asian equities sales to US institutions

Canadian equities and ECM platform established (Orion Securities)

Head of US Equities appointed

Specialist energy equities capabilities acquired(Tristone Capital)

Specialist FIG equities capabilities acquired (FPK)

US ECM team established

US PCM team established

Pre-2007 2007 2008 2009 2010 2011

Global Head of Derivatives appointed(New York)

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Canadian retail distribution added(Blackmont Capital)

1. Including 50% of Americas ECM revenue. 2. Within the Americas.

Institutional and retail cash equities 1H11 income up 90% on pcp2


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Lending, leasing and fixed income1

Emerging markets distribution

Customised commodity lending

High yield and distressed credit trading capability established

US DCM team established

Sizeable expansion of corporate lending capability

Pre-2007 2007 2008 2009 2010 2011

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High yield and distressed credit sales and research capabilityestablished

Leasing and asset financing for rail and manufacturing assets

Acquisition of leading independent technology leasing business

Expansion of vendor and channel financecapability

Macquarie Air Finance established

Real estate lending and CMBScapabilities established

Significant aircraft portfolio purchased fromAIGs ILFC

Canadian DCM team established

Lending, leasing and fixed income

1H11 income up 24% on pcp2

1. Including 50% of Americas DCM revenue. 2. Within the Americas.


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M&A and advisory

Generalist capabilities, concentrated in infrastructure, with a principal and fund advisory focus

Pre-2007 2007 2008 2009 2010 2011

Specialist restructuring capability acquired (Giuliani Capital Advisors)

Specialist Canadian resources capability acquired (Orion Securities)

Vice Chairman/Head of Corporate Finance hired

Hiring of senior client facing Corporate Finance executives commences

Specialist energy/A&D capability acquired (Tristone Capital)

Specialist financial institutions capability acquired (FPK)

Head of Industrials hired

Specialist Real Estate PCMacquired (Presidio Partners)

Chairman, Oil & Gashired

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M&A and advisory 1H11 income up 89% on pcp1

1. Within the Americas.


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Commodities, resources and foreign exchange

Agricultural derivatives and structured finance; energy markets and derivatives

Pre-2007 2007 2008 2009 2010 2011

Physical power business

LatinAmericanphysical oilmarkets

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Physical and financial coal transactions

Acquisition of Constellation gas trading operation and Integrys EnergyServices wholesale electric marketing and trading portfolio

Pulp and paper trading

Macquarie/Freeport LNG export project

Physical oil and NGLs trading

Commodity investor products business; emerging markets distribution and origination platform

Acquisition of Cook Inlet (natural gas); establishment of ethanol trading

Commodities, resources and foreign

exchange 1H11 income up 55% on pcp1

1. Within the Americas.

Customised commodity lending


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Deep and comprehensive industry expertise,

aligned group-wide

Sector Real EstateInfrastructure,

Utilities &Renewables

IndustrialsFinancial

InstitutionsTMET

Resources(Energy &

Mining)

No. of publishinganalysts

3 6 7 17 8 17

No. of ECM deals1 33 21 5 21 2 107

No. of DCM deals1 1 2 14 4 5 4

% of lendingcommitments2,3

2% 8% 35% 7% 14% 33%4

CY10 attributable

deal value ($Am) 317 8,268 3,800 4,200 1,927 7,680

Group wideacquisitions

Presidio FPKOrion,

Tristone,Constellation

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Delaware, Blackmont

All data current as at 31 Jan 11 unless otherwise noted. 1.CY10. 2. As at 31 Dec 10. 3. Includes supply financing, pre-pay deals and commodity repurchase transactions. 4. Includes energy financing portfolio andstructured commodity financing portfolio as it relates to energy.


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Selected transactions by sector

Corporate Advisory CY10

Infrastructure,Utilities &

Renewables Real Estate Industrials Financial Institutions TMETResources

(Energy & Mining)

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First Commonwealth

Follow-on Offering

$US86 million

Joint Bookrunner

Cooper Gay

Merger withSwett & CrawfordUndisclosed

Lead Financial Advisor

TD Bank

Follow-on Offering

$US239 million

Co-Manager

InterOil

Common Stock/Convertible Debt

$US210 million/$US70 millionJoint Bookrunner

Joint Lead Manager

Puda Coal

Follow-on Offering

$US108 million

Joint Lead ManagerJoint Bookrunner

Semafo

Prospectus Offering ofCommon Shares

$C120 million

Co-Lead Manager

General GrowthProperties

Follow-on Offering

$US2.3 billion

Senior Co-Manager

General GrowthProperties

RevolvingCredit Facility

$US300 million

Joint Bookrunner

DuPont FabrosTechnology

Follow-on Equity Offering

$US317 million

Joint Bookrunner

Teranet Inc.

Acquisition of RenewedLicenses

$C1 billion

Exclusive Financial Advisor

Midwest Gaming

Senior Secured Facility

$US120 million

Joint Lead Arranger

Airvana

Senior SecuredCredit Facility

$US360 millionJoint Lead Arranger

Joint BookrunnerCo-Syndication Agent

Centerplate

Senior SecuredCredit Facility

$US309 millionJoint Lead Arranger

Joint BookrunnerSyndication Agent

GENCO

Acquisition of ATC

$US513 million

Lead Financial Advisor

Bucyrus International

Senior Debt Facility

$US0.4 billion

Joint Bookrunner

Denver FastracksEagle P3 Commuter-rail

Project

$US2.1 billionFinancial Advisor

Sponsor andEquity Underwriter

SouthWest Water Co.

JPMorgan-led ConsortiumAcquisition

$US443 million


Granite State Electric &Energy North Natural Gas

Acquisition by AlgonquinPower & Utilities

$US285 million



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Evidence of progress in the Americas

513US stocksunder coverage

222 Canadianstocks

under coverage

Structuredcommodity financingportfolio of

$US919m31 Dec 10

$A159bin assets undermanagement2

$C10bin assets underadministration

31 Dec 10

More than

$US3bin corporate lending

commitments inNorth America 18

months to 31 Dec 10

#4North American

physical gasmarketer1

13 bookrun

DCM deals and38 bookrun

ECM deals in the USand Canada in CY10

53 M&A dealsin the Americas CY10,

8 involving publiclytraded targets

~$US39bcapital raised for

clients in theAmericas CY10

$US24b inAUM uplift

in DelawareInvestments during

CY10

One of the

largestindependent

lessorsof technology inNorth America

30investment advisors

added in CY10

#8ranked Canadian

equity dealer3

#11ranked US equities

research 20104

13All values as at 31 Dec 10 unless otherwise noted. 1. PlattsGasDaily Dec 10. 2. As at 30 Sep 10. 3. Bloomberg Underwriter Rankings, Canada, Canadian Equity Offerings 2010. 4. Greenwich Institutional Survey2010.


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Oil & gas and energy servicesexpertise

Specialist Acquisition & Divestiturecapability through Macquarie Tristone

Full service capital markets platform

Public and private equity capital Debt capital (including subordinated

and convertible debt) Structured and project finance Royalty purchases and volumetric

production payments

FinancingM&A and advisory

Group-wide:

Integrated team established to promotecoordinated approach to energy sector

Group-wide

Trading Physical assets and funds management

Landfill gas-to-energy facilities Gas production and distribution

business Cogeneration plants, wind farms,

biomass facilities and solar park Bulk liquid storage and handling

terminal Renewable energy infrastructure

investment capability Listed and unlisted funds with energy

investment

Financial and physical gas, electricity,oil and ethanol (via JV) trading

Corporate bonds, bank loans,securitised debt, credit default swaps

Interest rate derivative structuring andtrading Inflation-linked derivative structuring

and trading Equities trading covering oil & gas,

utilities, metals & mining, renewableenergy

MSG: Equities research covering oil

& gas, utilities, metals &mining, renewable energy

New York-based Global OilEconomist

Internal credit research

Equities research

Energy/Resources

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Energy/Resources Case Study

Building complementary group-wide capabilities


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Key challenges

Branding and positioningMacquarie brand and capabilities less well-known in the Americas

Integrated approachEvolving from single-product focus to delivering a full range of products andservices to clients across sectors in an integrated way

Adaptation vs differentiation

Combining the best aspects of US bulge bracket model while retainingMacquaries unique strengths, including appetite for principal transactions,entrepreneurial culture and speed to market

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Conclusion

The US is the biggest financial services market in the world - significantopportunity

Unique positioning to capitalise on core strengths and the market opportunity

Key hires and strategic acquisitions gaining momentum

Continuing to build brand profile and ensure delivery of unified business

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A substantial and diversified business in the Americas, withcomprehensive coverage in target sectors


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Macquarie Group LimitedOperational Briefing8 February 2011 Presentation to Investors and Analysts

Tim Bishop Presentation

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