Macquarie Bank Limited Investor Presentation Richard Sheppard - - PowerPoint PPT Presentation

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September 2006

Macquarie Bank Limited

Investor Presentation

Richard Sheppard Deputy Managing Director

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Disclaimer

The name "Macquarie" refers to the Macquarie group, which comprises Macquarie Bank Limited and its worldwide subsidiaries, affiliates, and the funds or companies that they manage. Future results are impossible to predict. Opinions and estimates offered in this presentation constitute our judgement and are subject to change without notice, as are statements about market trends, which are based on current market conditions. This presentation may include forward-looking statements that represent opinions, estimates and forecasts, which may not be realized. We believe the information provided herein is reliable, as of the date hereof, but do not warrant its accuracy or completeness. In preparing these materials, we have relied upon and assumed, without independent verification, the accuracy and completeness of all information available from public sources. Macquarie Bank Limited is not licensed to conduct banking business in the United States. It maintains Representative Offices in New York, Texas, California and Washington. With respect to matters pertaining to US securities laws, and to the extent required by such laws, Macquarie Bank Limited and its worldwide subsidiaries consult with, and act through, Macquarie Securities (USA) Inc., a registered broker-dealer and member of NASD,

• r another US broker-dealer.

Any Macquarie subsidiary noted in this presentation is not an authorized deposit-taking institution for the purposes

• f banking act (Commonwealth of Australia) 1959, and such subsidiaries obligations do not represent deposits or
• ther liabilities of Macquarie Bank Limited ABN 46 008 583 542. Macquarie Bank Limited does not guarantee or
• therwise provide assurance in respect of the obligations of any such subsidiary.

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Agenda

Overview Financial performance Earnings drivers Developments during the first half Outlook Appendices — Regional growth — Specialist fund initiatives — Significant managed assets, extensive community services

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A diversified financial services institution

• Full service in Australia
• Broad investment banking in Asia-Pacific
• Focussed participation in international markets
• Key statistics

— 26% compound annual growth in NPAT over a decade — Assets under Management $A150b (June 2006) — Balance Sheet Assets $A106b (March 2006) — Market capitalisation: — Macquarie Bank (MBL): $A15.6b* ($US12.1b) – Top 15 company on ASX, over 60,000 shareholders — Macquarie Bank and Macquarie-managed funds: $A56.1b* ($42.2b) – Top 5 company on ASX, over 200,000 shareholders

(*as at 9c h 06 – Macquarie Securities)

* Macquarie and Macquarie-managed funds hypothetical market capitalisation comprises the market capitalisations of all listed Macquarie entities at 14 September 2006 and the capitalisation of all Macquarie unlisted funds as measured by net asset value at 30 June 2006.

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Munich Miami Dublin Frankfurt London Paris Geneva Milan Vienna Cape Town Johannesburg Jakarta Kuala Lumpur Bangkok Hong Kong Singapore Labuan Manila Hsinchu Taipei Shanghai Tianjin Beijing Seoul Tokyo Vancouver Seattle San Francisco San Jose Los Angeles San DiegoHouston Chicago Memphis Charleston Jupiter New York Boston Toronto Auckland Wellington Christchurch Sao Paulo

EUROPE ASIA NORTH AMERICA

687 staff 1,355 staff 783 staff

AFRICA AUSTRALIA NEW ZEALAND SOUTH AMERICA

72 staff 5,828 staff 105 staff 25 staff

Abu Dhabi

MIDDLE EAST

21 staff

Staff numbers at 31 August 2006

Mumbai Rome Zurich Jacksonville Montreal

Almost 8,900 staff in 24 countries

International staff up 49% since August 2005 to over 3,000

Amsterdam Carlsbad Irvine Hartford

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Asset & wealth management (29%*) Investment banking (37%*) Financial markets (21%*) Lending (13%*)

Commodities FX, futures, treasury and debt markets Mergers and acquisitions, advisory and underwriting Financial products Equipment and other leasing Property lending Other lending Infrastructure, property and

• ther specialist funds

Equity derivatives Institutional stockbroking Banking and securitised lending Retail and wholesale funds management and private client broking

Up 24% on pcp Up 28% on pcp excluding impact of Macquarie Goodman restructure** Up 44% on pcp Up 14% on pcp

Operating income is diversified

Year ended 31 March 2006. * Represents the percentage contribution to total income. ** Down 1% on pcp including MGQ

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Net Profit After Tax $Am

Years ended 31 March. ^Restated for Australian equivalents to International Financial Reporting Standards (AIFRS)

100 200 300 400 500 600 700 800 900 1000 69 73 77 81 85 89 93 97 '01 '05^ Gain on formation of Macquarie Goodman Group (MGQ)

1 2 3 69 71 73 75 77 79

March 2006

38 year history of profit

14 years of continuous record profits

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Agenda

Overview Financial performance Earnings drivers Developments during the first half Outlook Appendices — Regional growth — Specialist fund initiatives — Significant managed assets, extensive community services

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PROFIT

200 400 600 800 1000 1200 2002 2003 2004 2005^ 2006 Impact of AIFRS Gain realised on MGQ formation

EPS

50 100 150 200 250 300 350 400 450 2002 2003 2004 2005^ 2006 Impact of AIFRS EPS attributable to MGQ formation (reported: 8% including impact of new accounting standards and Macquarie Goodman restructure) (reported: 13% including impact of new accounting standards and Macquarie Goodman restructure)

Years ended 31 March. * Basic EPS. ^Restated for AIFRS

$Am Acps

33% increase in underlying profit 27% increase in underlying EPS*

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INTERNATIONAL INCOME

500 1000 1500 2000 2500 2002 2003 2004 2005 2006

ASSETS UNDER MANAGEMENT

20 40 60 80 100 120 140 160

2002 2003 2004 2005 Mar-06 Jun-06

Infrastructure Property Other Specialist FSG/FMG Retail FSG/FMG Wholesale

48% of total income

$Am $Ab

$150b at June 2006

59% increase in international income 45% increase* in assets under management

Years ended 31 March. * % increase for year ended 31 March 2006

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Agenda

Overview Financial performance Earnings drivers Developments during the first half Outlook Appendices — Regional growth — Specialist fund initiatives — Significant managed assets, extensive community services

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Operating income

17% increase to $A4,393m*

500 1,000 1,500 2,000 2,500 3,000 3,500 4,000 4,500 5,000 2002 2003 2004 2005^ 2006 $Am

Profit on formation of MGQ Other income Net interest income Trading income Fee and commission income

Years ended 31 March. * 32% up on pcp excluding gain realised on formation of Macquarie Goodman Group (MGQ) and impact of AIFRS. ^ Restated for AIFRS.

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100 200 300 400 500 600 700 800 900 1000 Base fees Performance fees M&A, advisory & underwriting Brokerage and commissions Financial products Other $Am

2003 2004 2005 2006

Fee and commission income

34% increase to $A2,440m

Years ended 31 March. “Other” includes banking, lending & securitisation fee income, WRAP and other administration fee income

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100 200 300 400 500 600 700 800 900 1,000 2002 2003 2004 2005^ 2006 $Am

Interest Rate Products Foreign Exchange Commodities Equities

Years ended 31 March. ^ Restated for AIFRS, except AASB139.

Trading income

19% increase to $A876m

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2006 2005 Loan assets 2.66 16.4 437 2.64 13.9 366 Spread % Average Volume $Ab Interest $Am 1.11 178 60 Total interest bearing assets 1.36 49.6 675 1.44 41.3 594 (126) 549 0.35 Spread % Average Volume $Ab Interest $Am Mortgage SPVs 16.0 17.2 1.10 0.59 Trading assets and other securities 143 13.0 Non-interest bearing assets 86 14.4 Total (58) 536

—

Spreads stable

—

Mortgage portfolio average volume up 23%; loan portfolio average volume up 18%

—

Increased funding cost on larger equity investments portfolio

Net interest income

Loan Assets (year-end volumes)

2 4 6 8 10 12 14 16 18 20 2004 2005 2006

$Ab

Property Mortgages Margin lending & equities lending Treasury & Commodities Banking Macquarie Capital: Leasing Macquarie Capital: Other Clearing houses Other lending

(45) Other amortisation of deferred loan fees (including opening balance adjustment) Funding expense on derivatives reported in trading assets SPV amortisation of deferred loan costs AASB 139 impacts: 114 $Am 592 Net interest income (as reported) (112) 549 Net interest income (excluding AASB 139)

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1000 2000 3000 4000 5000 2002 2003 2004 2005* 2006 70 72 74 76 78 80 Income Expenses Expense to income ratio

A$m Expense/ income ratio (%)

Operating expenses

* Prior period adjusted to exclude impact of formation of Macquarie Goodman Group (MGQ). Including MGQ, the prior year is 69.1%.

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Tier 1 ratio down to 12.4% driven by:

— increase in RWAs — acquisition of seed assets — establishment of new specialist funds

Returning to pre-2001 capital raising levels RWAs growth exceeds growth in Tier 1 capital Post 31 March 2006 balance date:

— $A700m Tier 1 capital raising — Subordinate debt raisings: — May 2006: $A300m — Sept 2006: GBP200m (approx A$500M)

Tier 1 ratio

11 12 13 14 15 16 17 18 19 20 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006

% Growth of Tier 1 capital before deductions, Tier 1 deductions and RWAs

0% 50% 100% 150% 200% 2003 2004 2005 2006 Growth RWAs Tier 1 capital before deductions Tier 1 capital deductions

Capital management

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INTERNATIONAL INCOME BY GROUP

0.5 1 1.5 2 2.5 FMG EMG FSG BPG TCG IBG International Australia

STAFF NUMBERS

1,000 2,000 3,000 4,000 5,000 6,000 7,000 8,000 9,000

1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006

International Australia $Ab Headcount

48% of total income*

60% 22% 4% 68% 21% 53%

International income a major driver Total staff up 25% Int’l staff up 44%

Years ended 31 March *Excluding earnings on capital

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Agenda

Overview Financial performance Earnings drivers Developments during the first half Outlook Appendices — Regional growth — Specialist fund initiatives — Significant managed assets, extensive community services

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New business initiatives

New JVs:

— Macquarie Shinsei Advisory Co – corporate finance (Japan) — Macquarie First South – stockbroking & investment banking (South Africa)

New businesses:

— Acquisition of Canadian mortgage broker Cervus Financial Group to establish Canadian mortgages business — Acquisition of UK gas supply company Corona Energy

New offices:

— India: securities brokerage and corporate finance

Numerous specialist fund initiatives (refer Appendix) Continued investment in staff

— Macquarie/INSEAD Master of Finance (Investment Banking) degree established — Tailored programme for Macquarie graduate staff (world first)

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$A18.2b raised April 2005 – Aug 2006 56% from international investors $A6.5b raised over FY07 to date

$Ab

Funds raised by Macquarie and joint venture fund manager partners from 1 April 2005 to 31 August 2006, including equity raised via DRP.

2 4 6 8 10 12 14 16 18 20 Region Raising ($Ab) Americas 2.6 Europe, Africa & Middle East 3.6

TOTAL April 2005 – August 2006 $A18.2b

Asia Pacific 3.9 Australia 8.1

Specialist fund raisings

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Environment

• Strong beginning to the year
• Local and global equity markets are volatile
• Continuing equity sourcing from unlisted

market

• Asset realisations ongoing

—

• Approx. $A150m (book value)

disposed since March 06 including Dyno Nobel — 89% (by book value) of remaining IBG asset positions are subject to contract

• r in active confidential negotiations

with respect to disposal — Expect assets will be realised for a value consistent with initial expectations

$Ab

At 13 September 2006

0.0 0.2 0.3 0.5 0.6 0.8 0.9 1.1 1.2 1.4 1.5 1.7

Stagecoach Canadian Health PPP UK Moto Taiwan Broadband Baldwin Country Bridge Global Retirement Trust Smarte Carte Icon Parking Isle of Man Ferries Creative Broadcast Services European Directories S.A. CJ Cablenet Macquarie UK Broadcast Holdings

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Fund performance

Recent IBF fund performance flat Demand for resources coupled with increasing nominal bond rates has led to sector rotation

Sector relative performance Movement Dec 05 to Jun 06* Movement Jun 06 to Aug 06* 10 Year Government Bonds (yield change) +11% (2%) +3% +2% (4%) Major IBF Aust Listed Infrastructure Funds*

(MIG, MAp, MCG, DUET)

+1% Major non-Macquarie Aust Listed Externally Managed Infrastructure Funds*

(BBI, SPN, SKICA, BBW)

(3%) Major Aust Listed Resource Companies*

(BHP, RIO, Woodside)

+23%

G=tÉáÖÜíÉÇ=Äó=ã~êâÉí=Å~éáí~äáë~íáçå=~í=PN=aÉÅÉãÄÉê=OMMR=~åÇ=PM=gìåÉ=OMMS=êÉëéÉÅíáîÉäóK=`~äÅìä~íÉÇ=çå=~å=~ÅÅìãìä~íáçå=Ä~ëáëK

Movement through the cycle is potentially seeing rotation back to infrastructure

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Long term performance of Investment Banking Funds

IBF listed funds composite index2

N=

^ååì~äáëÉÇ êÉíìêå=Ä~ëÉÇ=çå=~ää=Å~éáí~ä=ê~áëÉÇI=ÇáëíêáÄìíáçåë=é~áÇ=~åÇ=î~äì~íáçåë=Eã~êâÉí=Å~éáí~äáë~íáçå=Ñçê=äáëíÉÇ=ÑìåÇë=~åÇ=åÉí=~ëëÉí=î~äìÉ=Ñçê=ìåäáëíÉÇ=ÑìåÇëF=Ñçê=f_=ÑìåÇë= ëáåÅÉ=áåÅÉéíáçå=íç=PN=^ìÖìëí=OMMS=EäáëíÉÇ=ÑìåÇë=~ë=~í=PN=^ìÖìëí=OMMSI=ìåäáëíÉÇ=ÑìåÇë=~ë=~í=PM=gìåÉ=OMMSFK==`~äÅìä~íÉÇ=áå=^raK==`~ëÜÑäçïë=ÅçåîÉêíÉÇ=~í=ÜáëíçêáÅ=ê~íÉëK

O

fåÇáÅÉë=~êÉ=êÉJÄ~ëÉÇ=íç=NMMK=^ää=áåÇáÅÉë=ìëÉÇ=~êÉ=~ÅÅìãìä~íáçå=áåÇáÅÉëK=pçìêÅÉW fobppI=fåíÉêå~ä=f_c=êÉëÉ~êÅÜK=f_c=äáëíÉÇ=ÑìåÇë=ÅçãéçëáíÉ=áåÇÉñ=~ëëìãÉë=êÉáåîÉëíãÉåí=çÑ=~ää= ÇáëíêáÄìíáçåë=çå=íÜÉ=ÉñJÇáëíêáÄìíáçå=Ç~íÉ=~åÇ=åç=ÑìêíÜÉê=é~êíáÅáé~íáçå=áå=ëìÄëÉèìÉåí=Å~éáí~ä=ê~áëáåÖëK

S&P/ASX 200 S&P 500

Compound annual return since inception1

Post fees Pre-performance fees MIG 16.8% 17.8% MAp 19.6% 21.9% MCG 32.6% 37.1% All IB Funds 17.8% 18.8%

FTSE 100

100 300 500 700 900 1,100 1,300 1,500 FY94 FY95 FY96 FY97 FY98 FY99 FY00 FY01 FY02 FY03 FY04 FY05 FY06 Index - Rebased to 100

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Substantial investments are held in a number of Macquarie funds Book value of equity investments at 31 August 2006 approx. $A3.1b, unrealised gains

• approx. $A590m

August 2006 sale of 8% stake in Macquarie Goodman Group: pre-tax, pre-profit share gain of approx. $A300m (NPAT approx. $A90m)

0.0 0.5 1.0 1.5 2.0 2.5 3.0 3.5 4.0 4.5

Mar-04 Mar-05 Mar-06 Aug-06

Medallist MGQ MIG MCW MOF MAP MIIF MMPR MCAG MCG MKOF MKIF MEIF MAG MIC CEU MMG

• Macq. Diversified (AA) Trust

Other infrastructure funds Other property funds Exchange seats Equity markets funds JVs and small operating investments Other Market value

$Ab

Market value

Equity investments

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Capital management initiatives

May 2006: $A700m capital raising to facilitate the growth of international expansion

• pportunities

Subordinate debt issuance: — May 2006: $A300m — Sept 2006: GBP200m (approx A$500M) DRP discount reintroduced

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Years ended 31 March. Ordinary share capital net of treasury shares, plus retained earnings and reserves attributable to ordinary shareholders. 2002 and 2003 adjusted for dividend provision

0.0 1.0 2.0 3.0 4.0 5.0 6.0 2002 2003 2004 2005 Mar 06 + capital raising $Ab

$700m capital raising (May 2006)

Growing capital to support business growth

$4.8b $3.2b $2.4b $1.8b $1.6b

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Our increasingly diverse businesses are

• utgrowing the conventional banking

regulatory model

Our diverse international businesses are growing much faster than our domestic banking businesses A significant portion of our business is not strictly banking in nature Commercial banking regulations do not readily accommodate this growth in non- banking business We have announced we are examining the establishment of a Non-Operating Holding Company which would own both banking and non-banking businesses. Other Australian banks also examining such structures We are in ongoing discussions with APRA – propose to make a formal submission by end September 2006 Expect to provide further information about the restructure in November 2006

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Continuing to invest in staff

International staff over 30% of total

1,000 2,000 3,000 4,000 5,000 6,000 7,000 8,000 9,000 2002 2003 2004 2005 Jan 2006 Aug 2006 Headcount

Australia International

8,876 8,060

Years ended 31 March.

10% increase in total staff since Jan 2006 to almost 8,900 22% increase in international staff since Jan 2006 to over 3,000

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Agenda

Overview Financial performance Earnings drivers Developments during the first half Outlook Appendices — Regional growth — Specialist fund initiatives — Significant managed assets, extensive community services

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Outlook

Expect 1H07 to be strongly up on prior corresponding half The final 1H07 result is still uncertain and will be dependent on market conditions and the extent of successful completion of major transactions on or before 30 September

• 2006. We expect:

— At least 20% increase on pcp excluding Macquarie Goodman Group (MGQ) realisation — At least 40% increase on pcp including MGQ realisation Market conditions have held up well during the period All Group results expected to be up on prior corresponding half First half has benefited from previously announced realisations – Dyno Nobel, oil and gas assets, MGQ Tax rate expected to be lower than pcp due to offshore tax rate differentials Expect to continue to benefit from staff growth and increases in market shares

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Outlook

AGM guidance in July for the year ending March 2007 was: Subject to market conditions, we expect: — Increase in transaction levels — Most trading businesses will benefit from geographic and product expansion but Asian market conditions may continue to negatively impact equity derivatives — Substantial raisings – unlisted international specialist funds — Performance fees at current relative prices will not be material — Asset disposals may be a swing factor Too early to provide further guidance on 2H07 but, as previously indicated, subject to market conditions expect FY07 to be up on prior year

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We continue to be well placed due to: — Good businesses — Diversification — Benefits of major strategic growth initiatives — Committed quality staff — Effective prudential controls — Continued market demand for quality assets 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 We will continue to roll out the existing business models. We do not envisage any material changes in strategy

Medium term outlook

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Agenda

Overview Financial performance Earnings drivers Developments during the first half Outlook Appendices — Regional growth — Specialist fund initiatives — Significant managed assets, extensive community services

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Income* Staff numbers

Years ended 31 March *Excluding earnings on capital

Income* up from $A434m to $A842m

Asia-Pacific

Income up 94% on pcp, year ended Mar 2006

100 200 300 400 500 600 700 800 900 2002 2003 2004 2005 2006 $Am 200 400 600 800 1,000 1,200 1,400 2002 2003 2004 2005 2006 Headcount

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Income* Staff numbers Income* up from $A463m to $A680m

100 200 300 400 500 600 700 800 2002 2003 2004 2005 2006 $Am 100 200 300 400 500 600 700 2002 2003 2004 2005 2006 Headcount

Europe, Africa & the Middle East

Income up 47% on pcp, year ended Mar 2006

Years ended 31 March *Excluding earnings on capital

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Income* Staff numbers

Years ended 31 March. *Excluding earnings on capital. **Over 50 new staff as part of Cook Inlet acquisition in November 2005

Income* up from $A376m to $A506m

The Americas

Income up 34% on pcp, year ended Mar 2006

100 200 300 400 500 600 2002 2003 2004 2005 2006 $Am 100 200 300 400 500 600 700 Mar-02 Mar-03 Mar-04 Mar-05 Mar 06** Headcount

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Income* Staff numbers Income* up 15% on pcp (in line including MGQ at approx $A2.2b)

Australia

Income up 15% on pcp (excluding MGQ ), year ended Mar 06

500 1,000 1,500 2,000 2,500 2002 2003 2004 2005 2006 $Am Income realised on formation of MGQ

1,000 2,000 3,000 4,000 5,000 6,000 Mar-02 Mar-03 Mar-04 Mar-05 Mar 06** Headcount

Years ended 31 March *Excluding earnings on capital

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• MBL acquisition of London bus transport business of Stagecoach Group plc for £264m
• Macquarie Infrastructure Group’s (MIG) demerger of mature Australian roads and Sydney Roads

Group IPO

• Outcomes of MIG’s portfolio and capital management review:

— $500m on-market security buy back — Entered into a memorandum of understanding and exclusivity arrangement to sell, subject to MIG security holder approval and other conditions precedent, 50% of interests in its four US assets to Macquarie Infrastructure Partners (MIP)

• MIG also completed £1b debt refinancing of M6Toll
• Macquarie Airports (MAP) issued $A444m TICkETS (Tradeable Interest-bearing Convertible to Equity

Trust Securities) to fund proposed acquisitions: — Additional 1.9% interest in Brussels Airport from MBL

— Completed 1 Sept at price of €27m

— Additional 15% interest in Sydney Airport from Ferrovial Infraestructuras SA for $A712m

• MCG announced acquisition of additional 4.3% stake in Arqiva, major transmission service provider

across the UK, from MBL for A$89m - raising overall stake to 58.3%. Subject to shareholder approval.

Specialist fund initiatives

Listed funds

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Specialist fund initiatives

Listed funds

Consortium led by Diversified Utility and Energy Trusts (DUET, jointly managed by Macquarie and AMP) and Macquarie Infrastructure Partners (MIP) announced intention to acquire US electricity transmission and distribution business Duquesne Light Holdings SA LLC for $US1.75b Macquarie Infrastructure Company (MIC) announced: — Sale of non-US investments: 50% stake in owner of Yorkshire Link toll road concession, 17.5% interest in South East Water and 4.2% holding in Macquarie Communications Infrastructure Group (MCG). Proceeds used to retire a portion of its acquisition-related debt. — Acquisition of US airport services company Trajen Holdings Inc for approx $US338m — Acquisition of 50% of North American bulk liquid storage terminal business International- Matex Tank Terminals for approx US$250m Macquarie Leisure Trust (MLE) completed $A70m placement to fund acquisition of Main Event Entertainment Holdings, US indoor family entertainment centre business. Also acquired Kingpin Crown, Australian bowling and family entertainment centre Macquarie Capital Alliance Group (MCAG)-led consortium acquired vehicle tyre inflation equipment business, AIR-serv, for US$420m

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• Continued capital raisings and establishment of new funds
• Macquarie European Infrastructure Fund II (MEIF II) – diversified unlisted fund focusing on

infrastructure investments in Europe. Target fund size €3b ($A5b)

• Macquarie Infrastructure Partners (MIP) – North American diversified unlisted fund focusing on

infrastructure and infrastructure-like investments in the US and Canada*

• Macquarie Goodman Hong Kong Wholesale Fund (MGHKF) –

$HK4.8b unlisted property fund established by Macquarie Goodman Asia (MBL/Macquarie Goodman JV)

• Macquarie Korea Opportunities Fund (MKOF) – Korean unlisted infrastructure fund. Target fund size

KRW2 trillion (approx. $A2.7b)

• ZonesCorp Infrastructure Fund – unlisted infrastructure investment fund in JV with Abu Dhabi

Commercial Bank, focusing on greenfield projects in Abu Dhabi and UAE. Raised AED1b (approx. $A360m)

Specialist fund initiatives

Unlisted funds

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Canada

Edmonton Ring Road 407 ETR AltaLink Cardinal Power Sea to Sky Abbotsford Hospital Academic Ambulatory Care Centre Leisureworld

Roads Utilities

USA

Detroit-Windsor Tunnel South Bay Expressway Dulles Greenway Indiana Toll Road Skyway Parking Company of America Atlantic Aviation Air-serv Icon Parking District Energy Duquesne Light Holdings* Michigan Electric Transmission Co. The Gas Company (Hawaii) Aquarion* Macquarie DDR ** Macquarie ProLogis ** Macquarie CountryWide ** Macquarie Office** Macquarie Leisure** International-Matex Tank Terminals^ Smarte Carte*

Transport services Property

South Africa

N3 Toll N4 Maputo Toll Bakwena Platinum Corridor

Italy Rome Airport

MGPA

South Korea

Baekyang Tunnel Cheonan Nonsan Expressway Incheon Expressway Kwangju 2nd Beltway Section 1 & 3 Machang Bridge New Daegu-Busan Expressway Soojungsan Tunnel Daegu East Circular Road

Australia

Prospect Water Dampier – Bunbury Multinet United Energy Distrib. AlintaGas Networks Broadcast Australia Macquarie Regional Radioworks Transtoll Sydney Airport

Germany

Warnow Tunnel TanQuid (formerly Tank

Storage Business)

MGPA

Communications Airports

Portugal

Tagus Crossings

Other

M7 Eastlink Retirement Care Australia Zig Inge Macquarie Office Macquarie CountryWide ** Macquarie Leisure ** MREEF

New Zealand

Macquarie

CountryWide **

Macquarie Leisure Eldercare Metlifecare Private Lifecare

In some cases, Macquarie or Macquarie managed fund has partial interest in asset Belgium

MGPA Brussels Airport

* Subject to financial and customary closing arrangements

Mexico Macquarie ProLogis **

Hong Kong

Schroder Asian properties MGPA

** Some additional assets acquired since 1 April 2004 Switzerland

MGPA

UK

M1-A1 Link M6 Toll Birmingham Airport Bristol Airport South East Water Energy Power Resources (UK) NM Renewable Energy Wales & West Utilities

France

Autoroutes Paris-Rhin-Rhône Energy Power Resources

Europe

MGPA

Netherlands

NRE* European Directories# MGPA

Singapore

Schroder Asian properties MMP REIT retail malls*

Luxembourg

Macquarie Global Property Advisors

(MGPA) China/Taiwan

Taiwan Broadband Communications Changshu Xinghua Port First China Property Group Schroder Asian properties MGPA Retail malls* (own, not manage)

Managing important assets across the globe

Japan

Hakone Turnpike Ibukiyama Driveway Schroder Asian properties MGPA Residential portfolio (own, not

managing) Denmark

Copenhagen Airport

Poland

Deep Sea Container

Terminal

MGPA

Sweden

Energy Power Resources

Europe

Arlanda Express Arqiva Red Bee Media Moto-Motorway Services

Provider

Stagecoach* Steam Packet Wightlink Macquarie Global Prop.

Advisors (MGPA)

Akeler JV assets Incheon Grand Bridge Seoul Chuncheon Expressway Woomyunsan Tunnel Seoul Subway #9 Yongin Seoul Expressway SK E&S CJ CableNet Kukdong Building Schroder Asian properties MGPA At August 2006

^ International-Matex Tank Terminals also in Canada #European Directories also in Sweden, Finland, Austria, Czech Republic, Slovakia, Denmark and France Spain

Itevelesa

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* Comprises listed and unlisted specialist infrastructure, property and other specialist assets under management as at 30 June 2006

Roads Investment Funds Other Tourism/Leisure & Residential Property Airports Utilities Communications Industrial Property Commercial Property

Specialist assets under management by sector

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* Comprises listed and unlisted specialist infrastructure, property and other specialist assets under management as at 30 June 2006

29% 25% 38% 8%

Americas Asia Pacific Europe, Africa & Middle East Australia

• 75% of managed specialist fund assets now outside Australia

Specialist assets under management by region

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45 Airports +110 million passengers per annum Toll roads +2.0 million cars per day 7 million households +2 million households 700,000 households Communications +80 million people are reached by Macquarie managed television, telephone, radio and cable infrastructure assets Rail +2.5 million passengers per annum Ferries +6.1 million passengers per annum Airport trolleys 32 million trolleys rented per annum Aged care/retirement villages +7,500 beds / +6,800 units Directories 35 million ‘yellow pages’ distributed Buses 300 million passengers per annum Vehicle inspection 1.4 million vehicles inspected per annum Employees +50,000 across the assets Gas distribution Water Electricity distribution

Provider of essential community services

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Glossary

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1H07 Half year ended 30 September 2006 AGM Annual General Meeting FMG Funds Management Group FSG Financial Services Group FX Foreign Exchange FY Full Year GBP Great Britain Pounds IBF Investment Banking Funds IBG Investment Banking Group 2H07 Half year ended 31 March 2007 AASB Australian Accounting Standards Board AED Arab Emirates Dirham APRA Australian Prudential Regulatory Authority CEU Connect East Group DRP Dividend Reinvestment Plan AIFRS Australian equivalents to International Financial Reporting Standards ASX Australian Stock Exchange $A/AUD Australian dollar BPG Banking and Property Group DUET Diversified Utility and Energy Trusts EMG Equity Markets Group EPS Earnings Per Share

Glossary

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JV Joint Venture M&A Mergers and Acquisitions MAG Macquarie Airports Group MAP Macquarie Airports MBL Macquarie Bank Limited MCAG Macquarie Capital Alliance Group MCG Macquarie Communications Infrastructure Group MCO-CR REIT Macquarie Central Office Corporate Restructuring REIT MCW Macquarie CountryWide Trust MDT Macquarie DDR Trust MEAP Macquarie Essential Assets Partnership MEIF Macquarie European Infrastructure Fund MEIF II Macquarie European Infrastructure Fund II MGHKF Macquarie Goodman Hong Kong Wholesale Fund MGQ Macquarie Goodman Group MIC Macquarie Infrastructure Company Trust MIG Macquarie Infrastructure Group MIIF Macquarie International Infrastructure Fund MIP Macquarie Infrastructure Partners MKIF Macquarie Korea Infrastructure Fund MKOF Macquarie Korea Opportunities Fund MMG Macquarie Media Group MMPR Macquarie MEAG Prime REIT MLE Macquarie Leisure Trust

Glossary

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49

MOF Macquarie Office Trust NPAT Net Profit After Tax pcp prior corresponding period PPP Public Private Partnership RWA Risk-Weighted Assets S&P Standard and Poor’s SPV Special Purpose Vehicle TCG Treasury and Commodities Group UK United Kingdom US United States of America $US US Dollar MPR Macquarie ProLogis Trust

Glossary