j~~=_~=i j~~=_~=i - - PowerPoint PPT Presentation

j~Åèì~êáÉ=_~åâ=iáãáíÉÇ j~Åèì~êáÉ=_~åâ=iáãáíÉÇ j~Åèì~êáÉ=_~åâ=iáãáíÉÇ j~Åèì~êáÉ=_~åâ=iáãáíÉÇ

Result Announcement for the half year Result Announcement for the half year ended 30 September 2005 ended 30 September 2005 Presentation to Investors and Analysts Presentation to Investors and Analysts

David Clarke, David Clarke, Executive Chairman

Executive Chairman

Allan Moss, Allan Moss, Managing Director & Chief Executive Officer

Managing Director & Chief Executive Officer

Greg Ward, Greg Ward, Chief Financial Officer

Chief Financial Officer 15 November 2005 15 November 2005

O

Disclaimer This material has been prepared for professional investors. The firm preparing this report has not taken into account any customer’s particular investment objectives, financial resources or other relevant circumstances and the opinions and recommendations herein are not intended to represent recommendations of particular investments to particular customers. All securities transactions involve risks, which include (among others) the risk of adverse or unanticipated market, financial or political developments and, in international transactions, currency risk. Due care and attention has been used in the preparation of forecast information. However, actual results may vary from forecasts and any variation may be materially positive or negative. Forecasts, by their very nature, are subject to uncertainty and contingencies many of which are outside the control of Macquarie Bank Limited (Macquarie).

Unless otherwise specified all information is for the six months ended 30 September 2005 and increases are on the prior corresponding half year.

P

^ÖÉåÇ~

• 1. Introduction

David Clarke

• 2. Result analysis

Greg Ward

• 3. Overview of the half Allan Moss
• 4. Strategy, environment and

approach

• 5. Outlook

Q

UUB=áåÅêÉ~ëÉ=áå=éêçÑáí=çå=éÅé

13% decrease on prior period*

1H2005^ 2H2005^* 1H2006

$A370m $788m $A683m Pre tax (attributable to ordinary equity holders) 85% increase on 1H2005 $A256m $556m $A482m

1H2005^ 2H2005^* 1H2006

After tax (attributable to ordinary equity holders) 88% increase on 1H2005

^ Prior periods restated for AIFRS. * Prior period included gain realised on formation of Macquarie Goodman Group (MGQ)

R

bmpI=ÇáîáÇÉåÇë=~åÇ=Ñê~åâáåÖ

140 40 100 250.4^ cps Mar 05

• Special Dividend

61 90 Total Dividends 117.8^ 212.9 EPS 61 90 Interim / Final Dividend cps cps Sep 05 Sep 04

All dividends franked to 90%

81% increase in EPS on pcp, 15% decrease on prior period* 48% increase in dividend per share on pcp

^ Prior periods restated for AIFRS. * Prior period included gain realised on formation of Macquarie Goodman Group (MGQ)

S

50 100 150 200 250 300 350 400 450 500

1986 1987 1988 1989 1990 1991 1992 1993 1994 1995

Operating income $Am

tÉ=~êÉ=ìëÉÇ=íç=ã~å~ÖáåÖ=ëíêçåÖ= ÖêçïíÜ

First year as MBL Stock markets collapse – Black Monday MBL: Macquarie Property Trust listing Interest rates rise 10%19% Property & banking crisis Superannuation Guarantee introduced MBL: enters

• Aust. Mortgage

market MBL: US and Hong Kong offices

• pen

Year ending 31 March MBL: London

• ffice
• pened

Vic and SA State Banks and Pyramid Building Society collapses Barings collapse

T

0.0 0.5 1.0 1.5 2.0 2.5 3.0 3.5 4.0

1996 1997 1998 1999 2000 2001 2002 2003 2004 2005* 1H2006

Operating income $Ab

Profit on formation of MGQ

tÉ=~êÉ=ìëÉÇ=íç=ã~å~ÖáåÖ=ëíêçåÖ= ÖêçïíÜ

Year ending 31 March. *Restated in accordance with AIFRS. Long-Term Capital Management ‘bail out’ Asian economic crisis HIH collapse Sydney Airport acquisition MBL: $500m capital raising Terrorist attacks Enron collapse MBL: BTIB acquisition MBL: ING Asia acquisition MBL: ASX listing, acquisition of stake in concessionaire for M5 motorway

U

^ÖÉåÇ~

• 1. Introduction

David Clarke

• 2. Result analysis

Greg Ward

• 3. Overview of the half Allan Moss
• 4. Strategy, environment and

approach

• 5. Outlook

V

• ÉÅçêÇ=Ñáêëí=Ü~äÑ=éêçÑáí

88% increase on pcp to $A482m 13% decrease on prior period*

100 200 300 400 500 600 700 800 900 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005^ 2006** $Am

Profit on formation

• f MGQ

^ 2005 comparatives throughout this presentation have been restated for AIFRS, except for AASB132/139 ** Reported under AIFRS. * Prior period Included gain realised on formation of Macquarie Goodman Group (MGQ)

NM

hÉó=ÇêáîÉêë=çÑ=Ü~äÑ

International expansion

International income more than double pcp, 46% of total income 75% of IBG advisory deals sourced outside Australia International staff up 32% from Sep 2004 to 2,037

Equity market conditions:

Stronger market conditions experienced by EMG business

particularly in Asia and Australia

Institutional and retail stockbroking also strongly up

Market conditions generally continued to be broadly favourable

Good transaction activity levels and success rate

Good market conditions for most treasury and commodity

businesses

NN

hÉó=ÇêáîÉêë=çÑ=Ü~äÑ

Good specialist fund activity and performance fees Assets under management up 16% to $A112b and associated

base fee growth*

Some asset realisations – transfer of assets to Macquarie

International Infrastructure Fund (MIIF)

Strong growth in volumes

Wrap, CMT, mortgages, margin & protected lending

Extraordinary staff commitment

The Bank is benefiting from: Continued investment in recruitment, training, retention and

remuneration systems

Culture of business ownership

* Based on revised definition of Assets Under Management

NO

hÉó=ÇêáîÉêë=çÑ=Ü~äÑW=áåíÉêå~íáçå~ä=Éñé~åëáçå

International income 46% of total income*

International income* up 103%

• n pcp to $A954m

International staff up 32%

• n pcp to 2,037

500 1,000 1,500 2,000 2,500 Sep 2003 Mar 2004 Sep 2004 Mar 2005 Sep 2005

200 400 600 800 1000 1200 Sep 2003 Mar 2004 Sep 2004 Mar 2005 Sep 2005

Americas Asia Pacific Europe/UK/Africa New Zealand

Specialist AUM by Region Significant initiatives/transactions during the half:

35% 31% 30% 4%

Australia/NZ Europe/UK/Africa Americas Asia Pacific Challenger Infrastructure (Europe) Bristol Airport (UK) Daegu East toll road (Asia) Property acquisitions (Various) Korean Ind. Energy Corp. (Asia) Italian mortgages bus. (Europe) MGU NYSE IPO (Americas) Dulles Greenway (Americas) Macquarie Securities India (Asia) YBR Directories (Europe) Abu Dhabi JV (Asia) MIIF IPO (Asia) Wightlink Shipping (UK) Prime REIT IPO (Asia) Wales & West Gas (UK) Sea to Sky Highway (Americas) Initiative/Transaction Initiative/Transaction Incheon Grand Bridge (Asia) BBC Broadcast (UK)

* Excluding earnings on capital

NP

hÉó=ÇêáîÉêë=çÑ=Ü~äÑW=îÉêó=Ñ~îçìê~ÄäÉ= ÅçåÇáíáçåë=áå=íÜÉ=ã~êâÉíë=áå=ïÜáÅÜ=ïÉ= çéÉê~íÉ

ASX 200

80 90 100 110 120 130 140 150 160 170 Sep-02 Mar-03 Sep-03 Mar-04 Sep-04 Mar-05 Sep-05 Index 5 6 7 8 9 10 11 12 Volume (number of shares in billions)

Volume Index

Hang Seng

80 90 100 110 120 130 140 150 160 170 180 Sep-02 Mar-03 Sep-03 Mar-04 Sep-04 Mar-05 Sep-05 Index 3 4 5 6 7 8 9 10 Volume (number of shares in billions)

Volume Index

Source: Bloomberg.

NQ

hÉó=ÇêáîÉêë=çÑ=Ü~äÑW=^rj=~åÇ=Ä~ëÉ=ÑÉÉë= ÖêçïíÜX=éÉêÑçêã~åÅÉ=ÑÉÉë

AUM up 16% on prior period to $A112b Base fees up 51% on pcp to $A271m

10 20 30 40 50 60 70 80 90 100 110 120 Sep 2003 Mar 2004 Sep 2004* Mar 2005* Sep 2005

AUM ($Ab)

50 100 150 200 250 300

Base Fees ($Am) Infrastructure Property Other specialist FSG/FMG - retail FSG/FMG - wholesale Base fees

Base fees

50 100 150 200 250 300 Sep 2003 Mar 2004 Sep 2004 Mar 2005 Sep 2005

$Am

MAP MCG MIC MIG MIIF Property Other specialist FSG/FMG

Performance fees

• New funds include MCAG, MIIF, MGU, Prime REIT
• Announced Macquarie Media Group IPO
• AUM redefined to reflect the proportional ownership interest in the

underlying assets of Macquarie-managed funds and mandated assets

• Better representation of the scope of Macquarie’s funds management

activities

• Previously only captured the equity value of investments that Macquarie-

managed funds have significant influence over

* AUM prior period comparatives for September 2004 and March 2005 throughout this presentation have been restated using the revised basis of measurement

NR

hÉó=ÇêáîÉêë=çÑ=Ü~äÑW=ÑìåÇ=ê~áëáåÖë

$A5.7b raised since April 2005 68% from international investors

1 2 3 4 5 6 $Ab Australia 173 MAP USA 560 Macquarie Global Infrastructure Total Return Fund Australia/NZ 458 MGQ Europe 1,003 MEIF Australia 187 GIF II Australia & International 675 MIG Predominant locale of investors Raising ($Am) Fund Australia & International 1,692 Macquarie Global Property Fund II Singapore 633 MIIF USA 66 Four Corners Australia/NZ 295 Other

Funds raised by Macquarie and joint venture fund manager partners from 1 April 2005 to 30 September 2005

NS

hÉó=ÇêáîÉêë=çÑ=Ü~äÑW=ÖêçïíÜ=áå=îçäìãÉë= ~Åêçëë=ÄìëáåÉëëÉë

Wrap platform volumes up 36%

• n pcp to $A16.6b

5 7 9 11 13 15 17 Sep 2003 Mar 2004 Sep 2004 Mar 2005 Sep 2005

$Ab

CMT volumes up 16% on pcp to $A11.8b

8 9 10 11 12 Sep 2003 Mar 2004 Sep 2004 Mar 2005 Sep 2005

$Ab

7 8 9 10 11 12 13 14 15 16 17 Sep 2003 Mar 2004 Sep 2004 Mar 2005 Sep 2005

$Ab

1.0 1.5 2.0 2.5 3.0 Sep 2003 Mar 2004 Sep 2004 Mar 2005 Sep 2005

$Ab

Margin lending volumes up 44% on pcp to $A2.9b

• Aust. mortgage volumes up

23% on pcp to $A16.2b

NT

léÉê~íáåÖ=áåÅçãÉ

57% increase on pcp to $A2,160m 9% decrease on prior period*

500 1000 1500 2000 2500 Sep 2004 Mar 2005 Sep 2005 $Am Other income Net interest income Trading income Fee and commission income

* Prior period Included gain realised on formation of Macquarie Goodman Group (MGQ)

NU

hÉó=ÇêáîÉêë=çÑ=Ü~äÑW=Éèìáíó=áåîÉëíãÉåíë

Market value of equity investments at 30 Sep 2005 is $A545m above cost

0.0 0.5 1.0 1.5 2.0 2.5 3.0 Mar 2005 Sep 2005 $Ab

Medallist AM Office Trust MGQ MIG MCW MOF MAP MIIF Prime REIT MCAG MCG KRIF MEIF MIC Other equity investments 0.0 0.5 1.0 1.5 2.0 2.5 3.0 3.5 Mar 2000 Mar 2001 Mar 2002 Mar 2003 Mar 2004 Mar 2005 Sep 2005 $Ab

Market value Cost

Growth of equity investments

New funds include Prime

REIT, MCAG, MIIF

Growth of investments in

existing funds through re- investment of base and performance fees

Demonstrates commitment

to funds

Unrealised gains

Equity accounted

investments not held at market value; includes investments in funds where Macquarie is the manager

NV

hÉó=ÇêáîÉêë=çÑ=Ü~äÑW=Éèìáíó=áåîÉëíãÉåíë

Significant equity investment income

(16) Net income from businesses held for sale Equity accounted income: Dividends and Distributions:

Arqiva, KRIF and various North American REITs

15 39

MGQ, MGPA, European Directories and Macquarie-

managed specialist funds (2) Other (including loan losses and collective allowance for credit losses) 106

MAP, MCG, Arqiva, DUET and other equity investments,

Malaysian funds management JV 142 Total $Am Gain on sale:

OM

pÉÉÇ=~ëëÉíë=~êÉ=ÄÉáåÖ=êÉÅóÅäÉÇ

200 400 600 800 1000 1200

Sep 01 Jan 02 May 02 Sep 02 Jan 03 May 03 Sep 03 Jan 04 May 04 Sep 04 Jan 05 May 05 Sep 05

$Am

Current Seed Assets Property: Macquarie Goodman HK Property: Chinese Retail Malls Property: Akeler Office Parks SK Enron Isle of Man Ferries Creative Broadcast Services European Directories S.A. Incheon Grand Bridge Korean Power (KIECO) D4 Tollroad CJ Cablenet Arqiva Brussels Airport DMG/RG Recycled Seed Assets NMRE UK Gas Atlantic Aviation District Energy Arlanda METC South East Water 1 Martin Place Broadcast Australia US REIT Altalink Bristol Airports

Acquisition by Macquarie Media Group pending IPO

Economic exposure following financial close of assets held with the intention that they will be transferred into a fund. At 31 October 2005.

ON

_ìëáåÉëë=ëÉÖãÉåí=~å~äóëáë

Commodities FX, futures, treasury and debt markets Mergers and acquisitions, advisory and underwriting Financial products Equipment and

• ther leasing

Property lending Infrastructure, property and other specialist funds Equity derivatives Institutional stockbroking Banking and securitised lending Retail and wholesale funds management and private client broking

Up 50% on pcp Up 91% on pcp Up 68% on pcp Up 6% on pcp

Investment banking 35% Asset & wealth management 31%

Other lending

Financial markets 22% Lending 12%

OO

`çëí=ã~å~ÖÉãÉåí

68.4 71.2 69.1 74.9 77.8

1,000 2,000 3,000 4,000 5,000 6,000 7,000 8,000 2002 2003 2004 2005 Sep 2005 Headcount 67 69 71 73 75 77 79 Expense/income ratio (%)

FSG FMG EMG BPG TCG IBG Service areas Expense/Income ratio*

9% increase in headcount since 1 April 2005 to 7,125 Low expense/income ratio maintained

Years ending 31 March, with the exception of the six months to 30 September 2005. * 2005 excluding income associated with the formation of MGQ, expense/income ratio is 70.2%

OP

q~ñ~íáçå

26.9 3.3 (6.4) 30.0

Sep 2004 %

24.5 24.9 Effective tax rate (1.3) 0.8 Other (4.2) (5.9) Rate differential on offshore income 30.0 30.0 Corporate tax rate

Mar 2005 % Sep 2005 %

Macquarie Income Securities

Applied for special leave to appeal to the High Court Exposure fully provided

R&D syndicates

Six syndicates remain under ATO review Expect to resolve for a non-material amount

OQ

`~éáí~ä=ã~å~ÖÉãÉåí

• 2.0
• 1.0
• 1.0

2.0 3.0 4.0 5.0 1997 1998 1999 2000 2001 2002 2003 2004 2005 Sep 2005 $Ab 2 4 6 8 10 12 14 16 18 20 Tier 1 Ratio (%) Tier 1 deductions MIPS MIS CPS Ordinary equity pre deductions Tier 1 ratio

Tier 1 Capital Tier 1 ratio at 30 Sep 2005

14.4 2.9 1.2 (0.6) (0.7) (0.5) (0.2) (0.2) (0.2) (0.6) (1.9) (0.7) 12.9

9 10 11 12 13 14 15 16 17 18 19

Mar 2005 Issued Capital, MIPS, Retained Earnings MIIF IPO YBR Group Arqiva UK Broadcasting Property transactions CJ Cablenet D4 Tollroad ATM Services Commitments for future acquisitions Growth in RWA's and other transactions Sep 2005

%

OR

^ìëíê~äá~å=Éèìáî~äÉåíë=íç=fåíÉêå~íáçå~ä= cáå~åÅá~ä=oÉéçêíáåÖ=pí~åÇ~êÇë=E^fcopF

No significant impact

AIFRS effective 1 April 2005 No change to underlying business economics, risk or underlying earnings Capital ratios not impacted – APRA still using previous AGAAP at this stage

The net write back of the provision to opening retained earnings of $50m on adoption of AIFRS would have been recognised in earnings over time The general provision for credit losses has been reversed and replaced with a collective allowance for credit losses that have been incurred but not yet identified Reduces net profit before tax by $A36m for the six months to 30 September 2005 Investments in entities that are also managed by Macquarie are reported as investments in associates and equity accounted (except where the investment is classified as held for sale) Reduces net profit before tax by $A4m for the six months to 30 September 2005 Revaluation of other derivatives and certain non-trading financial instruments to fair value Increases net profit before tax by $A34m for the six months to 30 September 2005 Revaluation of derivatives used to hedge the interest rate risk on MIPS hybrid recognised in earnings whilst MIPS held at cost Reduces net profit before tax by $A19m for the six months to 30 September 2005 Share based payments to employees expensed No material impact to net profit Reclassification of financial assets and liabilities in accordance with AASB 132/139 Gross-up assets and liabilities by $A20.4b at 30 September 2005; no material impact to net profit Consolidation of certain SPVs, mainly mortgage securitisation vehicles Impact AIFRS Change

OS

^ÖÉåÇ~

• 1. Introduction

David Clarke

• 2. Result analysis

Greg Ward

• 3. Overview of the half Allan Moss
• 4. Strategy, environment and

approach

• 5. Outlook

OT

j~àçê=~ÅÜáÉîÉãÉåíë=Ó ^ëá~

Macquarie International Infrastructure Fund (MIIF) – S$803m IPO on

Singapore stock exchange

Chinese property investments – residential apartments in Shanghai

and 9 retail shopping malls

Korean asset acquisitions

50% of Korean Independent Energy Corporation (with consortium) for

$US276m - LNG power facility

CJ Cablenet (with consortium) for KRW150b ($A195m) - digital cable

• perator

41% of Incheon Grand Bridge Project concessionaire for KRW67.5b ($A86m) 49% of SK Enron (with consortium) for $US294m – LNG gas distributor

Prime REIT – listing of the $S990m Prime REIT in Singapore and

subsequent acquisition of 50% of REIT manager

TMB joint venture – stockbroking and investment banking in Thailand Entry into Indian market – established securities brokerage and

corporate finance business

OU

j~àçê=~ÅÜáÉîÉãÉåíë=Ó bìêçéÉ=C=íÜÉ= jáÇÇäÉ=b~ëí

Macquarie European Infrastructure Fund

• Final close with investor commitments of €1.5b
• Wightlink acquisition - UK ferry service
• Acquisition of 49% of NRE* – Netherlands gas & electricity distribution network

UK office property JV - with office park developer Akeler, commenced

with two acquisitions total value £150m (85% acquired by Macquarie)

Dyno Nobel - $US1.7b acquisition by MBL-led consortium with portion of

international assets to be on-sold to Orica

Macquarie Global Property Advisors - $US1.3b capital raised for 2nd

real estate private equity fund

Macquarie Mortgages Italy – commenced licensed mortgage operations,

• ffices in Milan and Rome

Treasury and Commodities and Investment Banking JVs with Abu Dhabi

Commercial Bank Post balance date:

Acquisition of £225m Isle of Man ferry service MAp offer for majority shareholding in Copenhagen Airports

* Not yet completed at 30 September 2005

OV

j~àçê=~ÅÜáÉîÉãÉåíë=Ó íÜÉ=^ãÉêáÅ~ë

Macquarie Global Infrastructure Total Return Fund (MGU) –

$US425m IPO, New York Stock Exchange

Dulles Greenway – MIG’s investment in $US618m Virginia toll road The Gas Company, Hawaii – MIC announced intention to acquire

$US238m Hawaiian gas and LPG distribution company Post balance date:

Cook Inlet acquisition – Physical gas trading business in California

with 59 staff

Macquarie Office Trust – $A1.6b joint venture with US property

group Maguire Properties and $A248m capital raising

PM

j~àçê=~ÅÜáÉîÉãÉåíë=Ó ^ìëíê~äá~=C= kÉï=wÉ~ä~åÇ

Macquarie Capital Alliance Group - $A1b IPO; A$860m of

acquisitions:

European directories businesses Yellow Brick Road and TDC

Directories*

Red Bee Media (formerly BBC Broadcast) Aged care assets: Retirement Care Australia (includes assets

acquired from Salvation Army and Moran Health Care Group*) and Zig Inge Retirement Villages Group*

CMT reached $A11.8b; WRAP reached $A16.6b Retail client numbers exceeded 634,000

Post balance date:

Macquarie Media Group – proposed $A1bn IPO Virgin Money Australia – announced alliance to distribute retail

financial products

RVNZ, joint venture between Macquarie and FKP Property –

acquired 60% of Metlifecare, New Zealand's largest retirement village owner and operator

* Not yet completed at 30 September 2005

PN

fåíÉêå~íáçå~ä=áåÅçãÉ=~=ã~àçê=ÇêáîÉê

46% of total income^

0.0 0.2 0.4 0.6 0.8 1.0

FMG FSG EMG BPG TCG IBG

International (1H06) Australian (1H06)

$Ab

^ Excluding earnings on capital

56% 18% 47% 5% 70% 27%

More than half the income of some Groups

PO

bñÅÉääÉåí=ÅçåíêáÄìíáçåë=Äó=~ää=dêçìéë

Index

20 40 60 80 100 120 140 160 180 200

1H 2005 1H 2006

Investment Banking Treasury & Commodities Banking & Property Equity Markets Financial Services Funds Management

Percentage contribution based on management accounts pre-tax and pre-profit share, 2005 indexed to 100

PP

fåîÉëíãÉåí=_~åâáåÖ

Comments on the first half:

Outstanding result in strong environment – substantially up on pcp

Corporate Finance – 41% of MBL^

significantly up on pcp due to:

Increase in infrastructure fund performance fees from A$42m to A$169m

and net increase in fund base fees after costs

Increase in advisory fees – significant transactions in Australia & Europe Australian ECM fees up on pcp - No.1 Australian equity raised# Good ECM activity in Asia

Total equity under management* up 17.0% from $A26.0b (Mar ’05)

to $A30.4b, assets under management up 20% from $A37.8b (Mar ’05) to $A45.4b

Listing of new funds Macquarie International Infrastructure Fund

(Singapore) and Macquarie Capital Alliance Group (Australia)

Further fund raisings – MIG, MAP, Macquarie European Infrastructure

Fund, Macquarie Global Infrastructure Fund II

57%^

^ Percentage contribution based on management accounts pre-tax and pre-profit share. # Calendar year to 30 Sept 2005. (Thomson Financial) *Refer to glossary for definition of Equity Under Management

PQ

New assets include:

Australia/New Zealand: aged care US and Canada: toll road, gas utility, aged care UK/Europe: gas & electricity distribution, tank storage,

directories, ferry/ports operator, multimedia communication business

South Korea: toll roads, subway line, LNG power facility,

dig.cable operator

Continued growth in corporate finance activity – significant

transactions include:

Dampier to Bunbury refinancing, M5 refinancing, Royal Women’s Hospital PPP, Retirement Care Australia (RCA)/Moran Health Care*, Zig Inge Retirement Village, FKP/Mulpha Norwest*, Centennial Coal/Austral Coal*, Coles Myer buyback, Transurban/Hills Motorway, GPT internalisation, RCA/Salvation Army, Eldercare New Zealand, The Communications Group/WPP, Macquarie Bank/ATM Solutions, Retirement Villages New Zealand/Metlifecare*, SEEK IPO, Transpacific IPO, Charter Hall IPO, MAP, MIG, Healthscope, Valad Property, Macquarie Goodman placements Australia/NZ

fåîÉëíãÉåí=_~åâáåÖ=EÅçåíKF

* Not yet completed at 30 September 2005

PR

fåîÉëíãÉåí=_~åâáåÖ=EÅçåíKF

Beijing Mei Da Coffee/Starbucks Coffee International, CJ Cablenet, Daegu East Circulation Road, Guangxi Dameng/CITIC Dameng JV, Incheon Grand Bridge, Integrated Microelectronics/Speedy Electronics*, Korean Independent Energy Corporation, Seoul Subway #9, Yongin Waste Water Treatment Plant, Macquarie International Infrastructure Fund IPO, Prime REIT IPO, Hotel Leelaventure, Uttam Galva Steel placements Asia The Gas Company*, Dulles Greenway tollroad, Macquarie Countrywide/First Washington/CalPERS, Chicago Skyway refinance, Sea to Sky Highway, Okanagan Lake Bridge, Las Vegas Executive Air Terminal North America Dyno Nobel Ltd*, Tank Storage Business (TSB)*, M6 Midland Expressway, YBR Group, Wightlink Shipping, BBC Broadcast, Challenger Infrastructure Fund/Inexus Group, NRE Holdings*, Wales & West Utilities, Arqiva/Inmedia Communications, Bristol airport refinancing, Newcastle Hospitals PPP, South West London LIFT PPP, Bassetlaw Schools PPP, St Helens LIFT PPP UK/Europe

* Not yet completed at 30 September 2005

PS

fåîÉëíãÉåí=_~åâáåÖ=EÅçåíKF

Macquarie Securities (institutional stockbroking) – 8% of MBL^

Outstanding result – substantially up on pcp Australia – continued growth in secondary market revenues Asia – ahead of expectations; strong growth in market share,

good market conditions

Financial Products – 5% of MBL^

Steady on pcp Continued diversification of retail products in Australia, the US and

Europe and growth in wholesale opportunities

Joint initiatives with Funds Management Group

Listing of Macquarie Global Infrastructure Total Return Fund (MGU)

• n NYSE and establishment of Macquarie International

Infrastructure Securities Fund in Australia

Macquarie Capital – 3% of MBL^

Good result – significantly up on pcp with strong contribution from

lending business

3% growth in leasing books from $3.6b (Mar ’05) to $3.7b

^ Percentage contribution based on management accounts pre-tax and pre-profit share

PT

fåîÉëíãÉåí=_~åâáåÖ=EÅçåíKF

Post balance date:

Proposed IPO of Macquarie Media Group (MMG) – seed asset

Macquarie Regional Radioworks Current operating environment:

Market conditions remain favourable Australian IPO market below pcp - strong demand for quality issues International growth continuing Competition in infrastructure sector increasing – Macquarie’s

position remains strong due to significant global network 1st half vs 2nd half:

Substantial performance fees in 1st half from existing listed

specialist funds unlikely to be repeated in 2nd half

2nd half may benefit from specialist fund initiatives and asset

realisations

PU

fåîÉëíãÉåí=_~åâáåÖ=EÅçåíKF

Outlook:

Subject to market conditions, Asian business expected to continue

to develop

Corporate and ECM deal pipeline remains strong in all markets

with additional executive staff supporting higher levels of activity

Continue to benefit from developing team - size, skills and location Expect the full year to be up on the prior period subject to no

material change in market conditions

PV

15%^

bèìáíó=j~êâÉíë

Comments on the first half:

Very good result - more than double pcp Extremely favourable market conditions in all relevant markets In particular, global equity market volumes were abnormally high Very strong demand for equity linked products Asia remained a significant contributor, however contribution more

evenly spread across the group

Domestic Australian business maintains strong market share

Post balance date:

New Group Head (Kim Burke) as of 1 October, 2005

^ Percentage contribution based on management accounts pre-tax and pre-profit share

QM

bèìáíó=j~êâÉíë=EÅçåíKF

Current operating environment:

Increasing uncertainty in global markets negatively impacting

demand for products

Equity market volumes may have peaked

Outlook:

Despite continuing diversification of the Group’s business, results

remain contingent on global equity market conditions

Recent favourable conditions unlikely to persist, however extent of

any deterioration impossible to predict

QN

15%^

qêÉ~ëìêó=C=`çããçÇáíáÉë=

Comments on the first half:

Excellent result – significantly up on strong pcp Foreign Exchange and Metals and Energy Capital remain

the leading contributors

Foreign Exchange up on strong pcp reflecting satisfactory volatility and

good volumes

Metals and Energy Capital up on strong pcp despite subdued metals

trading, reflecting strong performance of energy capital business and metals equity interests

Strong results from Debt Markets, Treasury, Futures

Debt Markets reflecting strong performances in the securities trading,

debt arrangement and placement, interest rate derivatives activities

Treasury reflecting successful management of balance sheet growth Futures reflecting increased volumes in both clearing and execution

^ Percentage contribution based on management accounts pre-tax and pre-profit share

QO

qêÉ~ëìêó=C=`çããçÇáíáÉë=EÅçåíKF

Agricultural Commodities and Energy Markets down on

strong pcp – reflecting difficult trading conditions and expansion costs for Energy Markets business Current operating environment:

Financial markets volatility in line with pcp Commodity markets volatility continuing at satisfactory levels Transaction volumes strong

Outlook:

Good transaction activity levels expected to continue Continue growth offshore

QP

_~åâáåÖ=~åÇ=mêçéÉêíó

8%^ Comments on the first half:

Group contribution down on pcp due to investment in new businesses and

timing of major transactions

Property - down significantly due to timing of transactions

Property assets under management (including associates)* up 10.6% from

$A20.7b (Mar ’05) to $A22.9b

Achievements include listing of the $S990m Prime REIT in Singapore and

$US1.3b raising for Macquarie Global Property Advisors - Global Fund II

Securitised Lending down on pcp – predominantly due to investment in

Italian mortgage business

Australian mortgage portfolio increased 12% from $A14.5b (Mar ’05)

to over $A16.2b

Margin and capital protected loan portfolios increased 14% from $A2.6b (Mar ’05)

to over $A2.9b

US mortgage business - operating profitably but volumes lower than expected

due to rising interest rates

Banking up on pcp due to increased loan & deposit volumes and business

generated by new sales offices

^ Percentage contribution based on management accounts pre-tax and pre-profit share *Represents total assets under management of funds where Macquarie controls or significantly influences the fund manager, including 100% of MGQ

QQ

_~åâáåÖ=~åÇ=mêçéÉêíó=EÅçåíKF

Current operating environment:

Australian residential property market continues to soften with sale

rates slowing in the Eastern states

A number of major international markets where property yields

exceed the cost of borrowing

Continued growth in demand for business loans

1st half vs 2nd half:

Expect 2nd half to be up on 1st half due to timing of transactions

QR

_~åâáåÖ=~åÇ=mêçéÉêíó=EÅçåíKF

Outlook:

Slow down in the land sub-division businesses offset by a

strong contribution from the property funds management

Legislative REIT changes in the Asian and European

markets to provide property and property capital market

• pportunities

Continued growth in mortgages including the US, Italy and

possibly other international opportunities

New initiatives expected to contribute over medium term Expect to meet or exceed prior year result, excluding gain

realised on formation of Macquarie Goodman Group

QS

4%^

cáå~åÅá~ä=pÉêîáÅÉë

Comments on the year:

Well up on pcp Broking income up strongly on pcp - benefiting from good volumes Total assets under advice /administration/management up 16% from $A43b

(Mar ’05) to $A50b

Wrap up 18% from $A14.1b (Mar ‘05) to $A16.6b CMT up 11% from $A10.6b (Mar ‘05) to $A11.8b Superannuation up 18% from $A12.6b (Mar ‘05) to $A14.9b Macquarie Professional Series - managed fund distribution business, FUM

up to $A322m and growing

Macquarie Private Portfolio Management - funds under management up

57% from $A491m (March ’05) to $A773m

Macquarie Adviser Services (MAS) awarded first place in ASSIRT Service

Level Survey Best Fund Manager category for third consecutive year

MAS acquired financial planning software company, Coin Software Macquarie Financial Services launched Lachlan Wealth Management -

administrative and client service support to advisers

^ Percentage contribution based on management accounts pre-tax and pre-profit share

QT

cáå~åÅá~ä=pÉêîáÅÉë=EÅçåíKF

Current operating environment:

Equity markets, while slightly off recent highs, still supporting

growth in stockbroking and Wrap volumes

Strong CMT growth from successful adviser campaign Growth in adviser numbers to almost 300, covering Australia & NZ

Outlook:

Will continue to build annuity income streams Continued growth in Macquarie Professional Series including

launch of Winton Global Opportunities Trust - futures fund managed by Winton Capital Management Limited (UK fund mgr)

Good pipeline of opportunities for Coin (financial planning software

company) with both institutional and boutique clients

Launch of TMB retail broking operation in Thailand - early 2006

QU

cìåÇë=j~å~ÖÉãÉåí

Comments on the half year:

Well up on pcp Assets under management up 13% from $A42.0b (Mar ’05) to $A47.3b.

Market shares up in most asset classes

Good fund-raising results from new alternative asset funds - private

equity fund-of-funds, hedge funds & global REITs fund

Significant inflows from master trusts and platforms Satisfactory performance in most funds, including Australian equities Established private equity fund-of-funds operation in California

Outlook:

Full-year result expected to be broadly in line with last year, supported

by generally favourable conditions

Continued expansion through:

higher-margin specialist products retail platform offerings international expansion

1%^

^ Percentage contribution based on management accounts pre-tax and pre-profit share

QV

^ÖÉåÇ~

• 1. Introduction

David Clarke

• 2. Result analysis

Greg Ward

• 3. Overview of the half Allan Moss
• 4. Strategy, environment and

approach

• 5. Outlook

RM

pçãÉ=âÉó=ÉäÉãÉåíë=çÑ=j_i=ëíê~íÉÖó

A diversified financial services institution

Australia – full service Asia – broad investment banking Other markets – focussed

Focus where we can add special value Continuously seeking to add more value Embracing globalisation Commitment to growth Commitment through the cycle Specialist funds/alternative assets a key growth platform

RN

pçãÉ=âÉó=ÉäÉãÉåíë=çÑ=j_i=ëíê~íÉÖó

Focus on people High standards including ensuring that we have the relevant

competencies

Fostering an entrepreneurial environment combined with

strong risk management

Fostering a sense of partnership and ownership

This approach has proven effective for over 30 years through many market conditions

RO

lìíëí~åÇáåÖ=ÄìëáåÉëëÉë=Äìí=ëÜçêíJíÉêã= éÉêÑçêã~åÅÉ=åçí=áããìåÉ=áÑ=ëìëí~áåÉÇ= Ççïåíìêå=áå=Éèìáíó=ã~êâÉíë

Investment Banking Funds Management

Minimal impact on fixed interest

and currency funds

Macquarie Securities

Reduced market turnover Reduced market capitalisation

Treasury & Commodities

Reduced FX turnover Increased futures and credit

derivatives turnovers

Reduction in value of equity

investments

Increased demand for financing as

equity becomes more difficult to access

Banking & Property

Reduced demand for margin loans,

increased frequency of margin calls

Likely increased interest in property

investment to offset reduced demand resulting from lower corporate and household wealth

Equity Markets

Reduced demand for listed and

OTC derivatives and hedge fund products

Reduced support for closed-end

equity derivative products

Corporate Finance

Decreased M&A activity and

advisory work

Fewer IPOs and capital raisings Lower base fees if market

capitalisations fall

Impact on performance fees will

depend on performance relative to index

More difficult to establish new

specialist funds and raise equity for acquisitions for existing funds

Financial Products

Reduced retail demand

Macquarie Capital

Minimal impact

Financial Services

Reduced retail demand Reduced market turnover Percentage Group/business contribution based on management accounts pre-tax and pre-profit share.

RP

Investment Banking Funds Management

Minimal impact

Macquarie Securities

Increased rates reduces market

turnover; value of stocks traded would fall

Long term impacts minimal with

growth in superannuation

Treasury & Commodities

Access to liquidity; markets may be

tighter

Reduced FX activity Increased Futures and Debt

Markets activity

Banking & Property

Slowing sales rates and downward

pressure on land valuations

Reduction in fund asset values Reduced mortgages and margin

lending volumes; shift to protected lending (GEIs)

Increased margin calls and loan

defaults

Equity Markets

Decline in business activity and

volumes traded

Move away from yield based

products to capital protected products

Corporate Finance

Decline in asset values leads to

decline in business and M&A activity

Debt at the asset level largely

hedged; inflation linked revenues provide a natural hedge

Lower base fees driven by decline

in values

Slowdown in growth of assets

under management

Financial Products

Minimal impact

Macquarie Capital

Increased loan defaults Reduced lending activity

Financial Services

Reduced retail demand & market

turnover

Flight to cash

lìíëí~åÇáåÖ=ÄìëáåÉëëÉë=Äìí=ëÜçêíJíÉêã= éÉêÑçêã~åÅÉ=åçí=áããìåÉ=áÑ=ä~êÖÉ=êáëÉ=áå= áåíÉêÉëí=ê~íÉë

Percentage Group/business contribution based on management accounts pre-tax and pre-profit share.

RQ

péÉÅá~äáëí=ÑìåÇëLÅçJáåîÉëíãÉåí=ëóåÇáÅ~íÉë

Very favourable long-term environment

Investor demand

Strongly growing demand for investment products globally driven by:

demographics, growing wealth, trend to self funded retirement

Growth in interest in alternative assets In particular, fast growing interest in income assets offering secure GDP

plus growth – favours infrastructure, real estate and other privileged assets

Investor sophistication

Broader knowledge of investor products Global outlook

Asset availability

From government – increased use of PPP From corporates – divestiture of infrastructure and real estate to focus on

• perations

Regulatory environment

Governments facilitating securitization through REITs type legislation Switch from planned economies to market based: China, India, Eastern

Europe and others

RR

péÉÅá~äáëí=ÑìåÇëLÅçJáåîÉëíãÉåí=ëóåÇáÅ~íÉë

What we bring

Relevant financial and industry competence Operational experience Scale and international network Track record Investor relationships Organisational commitment

RS

^ÖÉåÇ~

• 1. Introduction

David Clarke

• 2. Result analysis

Greg Ward

• 3. Overview of the half Allan Moss
• 4. Strategy, environment and

approach

• 5. Outlook

RT

lìíäççâ=Ñçê=OMMRLS

Subject to continuation of current market conditions we

expect that we will at least match the record FY05 result of $A823m

Despite the fact FY05 included one-off gain from Macquarie

Goodman Group

Deal pipeline is satisfactory overall, including investment

banking and ECM. However, more subdued global equity markets may impact businesses leveraged to these markets, notably Equity Markets Group.

Unlikely we will receive substantial performance fees from

existing listed specialist funds in the second half

There is possible upside from specialist fund initiatives and

asset realisations

RU

jÉÇáìã=íÉêã=çìíäççâ=

We continue to be well placed due to:

Good businesses Diversification Benefits of strategic initiatives Committed quality staff Effective prudential controls

Subject to market conditions not deteriorating materially, we

expect:

Continued growth in revenue and earnings across most

businesses over time

Continued good growth in international businesses

j~Åèì~êáÉ=_~åâ=iáãáíÉÇ j~Åèì~êáÉ=_~åâ=iáãáíÉÇ j~Åèì~êáÉ=_~åâ=iáãáíÉÇ j~Åèì~êáÉ=_~åâ=iáãáíÉÇ

Result Announcement for the year Result Announcement for the year ended 30 September 2005 ended 30 September 2005 Presentation to Investors and Analysts Presentation to Investors and Analysts

David Clarke, David Clarke, Executive Chairman

Executive Chairman

Allan Moss, Allan Moss, Managing Director & Chief Executive Officer

Managing Director & Chief Executive Officer

Greg Ward, Greg Ward, Chief Financial Officer

Chief Financial Officer 15 November 2005 15 November 2005

SM

däçëë~êó

Australia Aust. billion b Australian generally accepted accounting principals AGAAP Australian Accounting Standards Board AASB Australian Prudential Regulatory Authority APRA Half-year ended 30 September 2005 1H2006 Half-year ended 31 March 2005 2H2005 Half-year ended 30 September 2004 1H2005 Australian equivalents to International Financial Reporting Standards AIFRS Equity Capital Markets ECM Assets Under Management. Reflects the proportional ownership interest in the underlying assets of the Macquarie-managed funds and mandated assets. AUM Australian Tax Office ATO Australian Stock Exchange ASX Equity Markets Group EMG Earnings Per Share EPS Diversified Utility and Energy Trusts DUET cents per share cps Converting Preference Shares CPS Cash Management Trust CMT Banking and Property Group BPG Australian dollar AUD/$A African Infrastructure Investment Fund AIIF

SN

däçëë~êó

Geared Equity Investments GEI Global Infrastructure Fund II GIF II Joint Venture JV Foreign exchange FX Investment Banking Group IBG International Financial Reporting Standards IFRS Initial Public Offering IPO Half Year HY Financial Services Group FSG Funds Management Group FMG Listed funds: market capitalisation plus underwritten or committed future capital raisings. Unlisted funds, Mandated Assets, Third party equity in Macquarie-led Consortia, MBL- Group Owned Assets: committed capital less called capital returned to investors upon realisation of investments. Mandated assets are assets for which Macquarie is engaged by a third party to perform specific investment management functions on behalf of that party. Third party equity in Macquarie-led Consortia is the amount of third party capital invested in assets through consortia led by Macquarie-managed funds. A fee is payable by consortia members to Macquarie upon disposal of their holding in that asset or a future date if their return exceeds a relevant benchmark return. MBL-Group Owned Assets are assets directly held by the MBL Group acquired with a view that they may be sold into new or existing funds. Jointly managed funds (including DUET, KRIF): equity under management is weighted based on Macquarie’s proportionate economic interest in the joint venture management entity. Note : Exchange rates as at 30 September 2005 Equity under management – infrastructure (reference slide 33)

SO

Korean Independent Energy Corporation KIECO Korean Road Infrastructure Fund KRIF Korean Won KRW New York Stock Exchange NYSE Liquified Natural Gas LNG Macquarie Adviser Services MAS million m Mergers and Acquisitions M&A Macquarie Income Securities MIS Macquarie Global Infrastructure Total Return Fund MGU Macquarie Infrastructure Company Trust MIC Macquarie Infrastructure Group MIG Macquarie International Infrastructure Fund MIIF Macquarie Income Preferred Securities MIPS Macquarie Goodman Group MGQ Macquarie European Infrastructure Fund MEIF Michigan Electric Transmission Company METC Macquarie Global Property Advisors MGPA Macquarie CountryWide Trust MCW Macquarie Capital Alliance Group MCAG Macquarie Airports MAP Macquarie Bank Limited MBL Macquarie Communications Infrastructure Group MCG

SP

As per definition of AUM. Includes interests of associates. Property assets under management (reference slide 43) Macquarie Office Trust MOF Macquarie Media Group MMG Novera Macquarie Renewable Energy NMRE Retirement Villages New Zealand (JV between FKP Property Group and Macquarie Bank) RVNZ United States of America US South Australia SA New Zealand NZ Singapore dollars $S Tier 1 (capital) T1 United Kingdom UK Special Purpose Vehicle SPV Risk Weighted Assets RWA Victoria Vic. Treasury and Commodities Group TCG Real Estate Investment Trust REIT Research and Development R&D Public Private Partnerships PPP Over The Counter OTC prior corresponding period pcp