Macquarie Bank Limited · 2 Disclaimer The name "Macquarie" refers to the Macquarie Group, which comprises Macquarie Bank Limited and its worldwide subsidiaries, affiliates, and the

September 2007

Macquarie Bank Limited

Investor Presentation – JPMorganconferences, New York and Edinburgh

Richard SheppardDeputy Managing Director

2

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 FINRA, or another US broker-dealer.

Macquarie Bank Limited, London Branch, is authorised to conduct banking business in the United Kingdom. Macquarie Bank Limited, London Branch, Macquarie Europe Limited and Macquarie Investment Management (UK) Limited are authorised and regulated by the United Kingdom Financial Services Authority.

Any Macquarie subsidiary noted in this presentation is not an authorized deposit-taking institution for the purposes of Banking Act (Commonwealth of Australia) 1959, and such subsidiaries obligations do not represent deposits or other liabilities of Macquarie Bank Limited ABN 46 008 583 542. Macquarie Bank Limited does not guarantee or otherwise provide assurance in respect of the obligations of any such subsidiary.

Past performance is not an indicator of future performance.

Throughout this report, periods prior to the 2005 financial year are reported under previous AGAAP, unless otherwise stated.

3

Agenda

Overview

Financial performance

Growing internationally

Proposed restructure

General update and outlook

Appendices

— Earnings drivers

— Analysis by business segment

— Restructure – further detail

4

A diversified financial services institution

Full service in Australia

Broad investment banking in Asia-Pacific

Focussed participation in international markets

Established 1969, banking license 1985, listed 1996

Market capitalisation: $A20.4b* – Top 15 company on ASX, over 100,000 shareholders

(*as at 9c

h 06 – Macquarie Securities)* At 19 Sept 2007

5

Over 11,000 staff in 24 countries25% increase since August 2006

NORTH AMERICA1,225 staff

SOUTH AMERICA23 staff

NEW ZEALAND112 staff

AUSTRALIA6,747 staff

AFRICA42 staff

ASIA1,806 staff

EUROPE & MIDDLE EAST1,105 staff

DublinParis

MilanVienna

Rome

AmsterdamLondon

Dubai

Zurich MunichFrankfurt

Geneva

Abu Dhabi

Mumbai

Cape TownJohannesburg

AucklandWellington

Christchurch

Jakarta

BangkokLabuan

SingaporeKuala Lumpur

Seoul Tokyo

ManilaHong Kong

TaipeiHsinchu

Shanghai

BeijingTianjin

Sao Paulo

ChicagoToronto Montreal

JacksonvilleSavannah

Miami

San JoseSan FranciscoSeattle

Vancouver

New YorkBoston

CarlsbadLos AngelesIrvineSan Diego

Houston

Denver

Sunshine CoastBrisbaneBroadbeach

SydneyNewcastleCanberraMelbourne

AdelaidePerth

CalgaryWinnipeg

New DelhiTroy

Atlanta

As at 31 Aug 2007

Manchester

6

Operating income is diversified Financial year ended 31 March 2007

Asset & wealth management: 27%*Investment banking: 42%*Income up 75% on prior year Income up 39% on prior year

Financial markets: 21%*Income up 34% on prior year

Lending: 10%*Income up 23% on prior year

Commodities

FX, futures, treasury and debt markets

Mergers and acquisitions, advisory, underwriting and

principal transactions

Financial products

Equipment and other leasing

Other lending

Investment banking, real estate and other specialist funds

Equity derivatives

Institutional cash equities

Banking and securitised lending

Retail and wholesale funds management and private client broking

Real estate lending

* Represents contribution to total income

7

Net Profit After Tax $Am

Years ended 31 March. Data current to 31 March 2007. From 2005 numbers have been reported under International Financial Reporting Standards

0100200300400500600700800900

1000110012001300140015001600

69 75 81 87 93 99 '05

March 2007

39 year history of profit

0

1

2

3

69 71 73 75 77 79

8

Agenda

Overview





Appendices




9Years ended 31 March

0

100

200

300

400

500

600

700

2002 2003 2004 2005 2006 2007

cpsBasic EPS of $A5.9248% increase on pcp

Profit of $A1.46b60% increase on pcp$Am

0200400600800

1000120014001600

2002 2003 2004 2005 2006 2007

Financial Performance Financial year ended 31 March 2007

0

50

100

150

200

250

300

350

2002 2003 2004 2005 2006 2007

Special dividend

Dividend of $A3.1547% increase on pcp

Acps

0

1000

2000

3000

4000

5000

6000

7000

8000

2002 2003 2004 2005 2006 2007

Income of $A7.2b49% increase on pcp

$Am

10

70% increase in international income

55% of total income

41% increase* in assets under management

$Am

$225b at August 2007- up 14% since 31 Mar 07

0

50

100

150

200

2002 2003 2004 2005 2006 2007 Aug-07

* % increase for year ended 31 March 2007 Years ended 31 March

Securities WholesaleSecurities RetailOther SpecialistReal EstateInfrastructure

INTERNATIONAL INCOME

0

500

1000

1500

2000

2500

3000

3500

4000

2002 2003 2004 2005 2006 2007

ASSETS UNDER MANAGEMENT

Financial year ended 31 March 2007

in FY2007

$Ab

11

Expense/income ratio slightly down

0

1,000

2,000

3,000

4,000

5,000

6,000

7,000

8,000

2002 2003 2004 2005 2006 2007

$Am

68%

70%

72%

74%

76%

78%

80%

82%

Expense to Income Ratio (%)

IncomeExpensesExpense to income ratio

Information on this chart has been restated for all periods to bring it into line with the presentation of fee and commissions expenses as operating expenses.

Expense/income ratio slightly down at 73.2%

Financial year ended 31 March 2007

12

0

5

10

15

20

25

30

35

40

2002 2003 2004 2005 2006 2007

$Ab

$A28.8b

$A19.8b

$A13.4b$A10.0b$A10.6b

$A39.4b

Risk weighted assets growth 3.7 times the level of 5 years ago

13Ordinary 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

7.0

8.0

2002 2003 2004 2005 Mar 06 + capitalraising

Mar 07 + capitalraising

$Ab

$700m capital raising(May 2006)

Growing capital to support business growthStrong growth in ordinary shareholders’ equity

AQKUÄ

APKOÄAOKQÄ

ANKUÄANKSÄ

$750m capital raising & $80m share purchase plan

(May 2007)

ATKNÄ

14

Agenda

Overview





Appendices




15

From an Australian institution growing internationally to a global institution

headquartered in Australia

0

1,000

2,000

3,000

4,000

5,000

6,000

7,000

2002 2003 2004 2005 2006 2007

InternationalAustralia

* Excluding earnings on capital and after costs directly attributable to earning the income, including fee and commissions expenses.

$Am

70% increase in international income on prior corresponding period from $A2b to $A3.5b despite much stronger $A

International income 55% of total income*, up from 48% in prior year

16

From an Australian institution growing internationally to a global institution

headquartered in Australia

0

4,000

8,000

12,000

16,000

20,000

24,000

2004 2005 2006 2007 Apr - Aug 07

InternationalAustralia

$Am

$A3.5b

$A13.7b$A11.7b

International specialist fund equity raisings are more than triple Australian raisings

$A21.6b

$A12.4b (5 months)

Years to 31 March

17

Managing important assets across the globe

South AfricaN3 Toll N4 Maputo Toll Bakwena Platinum Corridor

United Arab EmiratesAl Ain Industrial CityIndustrial City of Abu Dhabi (Phase 2)Industrial City of Abu Dhabi Extension Phase 2ICAD Effluent Treatment Plant

USASouth Bay ExpresswayDulles GreenwayIndiana Toll RoadSkywayFastTrack parkingAtlantic AviationAIR-servIcon ParkingHanjin Container TerminalsDistrict Energy Duquesne Light*The Gas Company (Hawaii)

Aquarion*International-Matex Tank TerminalsLongviewSmarte CarteAmerican Consolidated MediaMacquarie DDR Macquarie ProLogis^Macquarie CountryWide Macquarie OfficeMacquarie Leisure

CanadaEdmonton Ring Road407 ETRA-25*AltaLinkCardinal PowerSea to SkyClean Power Operating Trust***Halterm LimitedLeisureworldFraser Surrey DocksNew World Gaming*

MexicoMacquarie ProLogis^

UKM6 TollBristol AirportEnergy Power Resources (UK)Wales & West UtilitiesThames WaterCLP EnvirogasArqivaAirwaveRed Bee Media

Moto-Motorway Services Provider

National Car ParksEast London Bus GroupSteam PacketWightlinkTalariusMacquarie Global

Property Advisors (MGPA)

New ZealandMetlife CarePrivate LifecareRetirement Care New ZealandMacquarie CountryWide Macquarie Leisure

BelgiumBrussels Airport

DenmarkCopenhagen Airport

South KoreaBaekyang TunnelCheonan Nonsan ExpresswayIncheon ExpresswayKwangju 2nd Beltway Section 1 & 3Machang BridgeNew Daegu-Busan ExpresswaySoojungsan TunnelDaegu East Circular RoadIncheon Grand BridgeSeoul Chuncheon ExpresswayWoomyunsan TunnelSeoul Subway #9Yongin Seoul ExpresswaySeosuwon-Osan-Pyungtaek ExpresswaySK E&SWest Sea Power/West Sea WaterKukdong BuildingSchroder Asian propertiesMGPA

China/TaiwanTaiwan Broadband CommunicationsChangshu Xinghua PortFirst China Property GroupSchroder Asian propertiesMGPARetail malls

Hong KongSchroder Asian propertiesMGPAMacquarie Goodman Hong Kong Wholesale Fund

JapanHakone TurnpikeIbukiyama Driveway

Schroder Asian propertiesMGPAMacquarie Goodman AsiaResidential portfolio (own, not managing)

SingaporeSchroder Asian propertiesMMP REITMGPA

FranceAutoroutes Paris-Rhin-RhôneEnergy Power Resources (Europe)French windfarmsMGPA

ItalyMGPAMacquarie Office

GermanyWarnow TunnelTanQuid (tank storage business)MGPAMacquarie OfficeMacquarie CountryWide

LuxembourgMGPA

NetherlandsNRE*European Directories#Obragas Net*Netbeheer Haarlemmermeer*MGPA

PolandDeep Sea Container TerminalMGPAMacquarie CountryWide

PortugalTagus Crossings

SpainItevelesa

SwedenArlanda Express

SwitzerlandMGPA

RoadsUtilities

Transport servicesReal Estate CommunicationsAirports

OtherAs at June 2007. *Subject to financial and customary closing arrangements *** Includes wind, hydro and biomass power assets #European Directories also in Sweden, Finland, Austria, Czech Republic, Slovakia, Denmark & France - In some cases, Macquarie or a Macquarie-managed fund has partial interest in an asset ^MPR assets no longer under management following acquisition of MPR by ProLogis in July 2007

AustraliaProspect WaterDampier – BunburyMultinetUnited Energy Distrib.AlintaGas NetworksBroadcast AustraliaMacquarie Regional Radioworks

Southern Cross BroadcastingTranstollSydney AirportWestlink M7EastlinkRetirement Care AustraliaRVG Sydney

Retirement Services AustraliaZig IngeMacquarie OfficeMacquarie CountryWide Macquarie Leisure MREEFMacquarie Direct Property

MalaysiaMGPA

80% of assets in specialist funds and syndicates are located outside Australia

18

Americas23%

Asia Pacific6%

Europe, Africa & Middle East

51%

Australia20%

80% of assets in specialist funds and syndicates are located outside Australia

Comprises listed and unlisted specialist infrastructure, real estate and other specialist assets under management (proportional ownership enterprise value) as at 30 June 2007

19Comprises listed and unlisted specialist infrastructure, real estate and other specialist assets under management as at 30 June 2007

Tourism/Leisure & Residential Real Estate

1%

A Broad Range of Specialist Assets Under Management

Commercial Real Estate6%

Industrial Real Estate2%

Communications Infrastructure

11%

Utilities 21%

Airports 12%

Roads 22%

Other 15%

Investment Funds5%

Retail Real Estate5%

20

Income* Staff numbers

As at 31 March 2007 * Excludes earnings on capital and is after directly attributable costs, including fee and commissions expenses. *Does not include Giuliani Capital Advisors staff integrated in April 2007

Growing in the AmericasIncome* up 105% on prior year to $A1.0 billion

0

200

400

600

800

1000

1200

2003 2004 2005 2006 2007

$Am

0

100

200

300

400

500

600

700

800

900

1000

2003 2004 2005 1905 2007*

Headcount

21

Sao Paulo

Toronto

Houston

San Francisco

SeattleVancouver

Miami

WinnipegMontreal

Carlsbad Savannah

Denver

Calgary

Chicago

Los Angeles

San Diego Jacksonville

San JoseNew York

Boston

Irvine

Focused businesses in the AmericasStaff: 1,248

Corporate finance & advisory

Institutional cash equities & research

Infrastructure funds mgt

Infrastructure finance & advisory

Real estate funds mgt

Real estate structured finance & advisory

Real estate development

Equity derivatives

Energy capital (oil and gas finance)

Commodity derivatives and structured products

Equipment leasing

Physical gas trading

Power trading

Emerging market bond broking

Residential mortgages

Other specialist funds management

Atlanta

Troy

Staff numbers at 31 Aug 2007

22


0

200

400

600

800

1000

1200

1400

1600

2003 2004 2005 2006 2007

$Am

0

100

200

300

400

500

600

700

800

900

1000

2003 2004 2005 2006 2007

Headcount

Growing in Europe, Africa & the Middle EastIncome* up 100% on prior year to $A1.4 billion

Submitted application to UK Financial Services Authority in July to set up UK licenced banking entity

As at 31 March 2007 * Excludes earnings on capital and is after directly attributable costs, including fee and commissions expenses.

23

Abu Dhabi

Milan

Dublin AmsterdamLondon

ParisGeneva

Cape Town

Frankfurt

Dubai

Munich

Johannesburg

Rome

ZurichVienna

Focused businesses in Europe, Africa & the Middle East

Staff: 1,147

Staff numbers at 31 Aug 2007 . *No Macquarie office in Moscow, JV sfaff not included in headcount

Infrastructure and specialist funds management

Corporate finance & advisory services

Financial products

UK investment funds (Open Ended Investment Company)

Lending and asset financing


Treasury and commodities activities

Equity structured finance and derivatives

Real estate structured finance

Real estate advisory and funds management

Residential mortgages

Business banking services

Funds management

Manchester Moscow* (JV)

24


Growing in Asia-PacificIncome* up 26% on prior year to $A1.1 billion

0

200

400

600

800

1000

1200

2003 2004 2005 2006 2007

$Am

0

200

400

600

800

1,000

1,200

1,400

1,600

1,800

2003 2004 2005 2006 2007

Headcount

As at 31 March 2007. Includes New Zealand. * Excludes earnings on capital and is after directly attributable costs, including fee and commissions expenses.

25

Hsinchu

BeijingTianjin Seoul

ShanghaiTokyo

Manila

Hong Kong

Bangkok

LabuanKuala Lumpur

Singapore

Jakarta

Mumbai

Broad investment banking in AsiaStaff: 1,918

Corporate finance & advisory

Equity capital markets


Infrastructure, real estate and other specialist funds

Equity derivatives

Futures broking

Real estate structured finance & advisory

Real estate development

Leasing

Treasury & commodity derivatives

Financial products

Taipei

Staff numbers at 31 Aug 2007. Includes New Zealand

New Delhi

26


Growing in Australia Income* up 31% on prior year to $A2.8 billion

0

500

1,000

1,500

2,000

2,500

3,000

2003 2004 2005 2006 2007

$Am

0

1,000

2,000

3,000

4,000

5,000

6,000

7,000

2003 2004 2005 2006 2007

Headcount

As at 31 March 2007 * Excludes earnings on capital and is after directly attributable costs, including fee and commissions expenses.

27

Agenda

Overview





Appendices




28

Purpose of the restructure

The Restructure is intended to address two key objectives simultaneously:

— position the Macquarie Group to continue to pursue the strategies that have been responsible for its strong growth; and

— assist the Macquarie Group in meeting its obligations to the Australian Prudential Regulation Authority (‘APRA’)

29

Summary of the proposal

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Corporate structure BEFORE Corporate structure AFTER

30

Proposed establishment of Macquarie Group Limited (NOHC) on track

We are on track

— Formal APRA approval received

— Court orders convening the meetings of shareholders and optionholders received

— All necessary private tax rulings and draft class rulings received

— Provisional ratings received. Definitive ratings will be applied by the Rating Agencies upon establishment of Macquarie Group Limited

— MBL short term ratings remain unchanged at A-1 / P-1 / F-1

— Commitments obtained for a term bank facility of $A8b from a syndicate of major international and Australian banks

— The proposal remains subject to the approval of the Federal Treasurer. Relevant applications have been lodged.

— EGM on 25 October to seek shareholder and optionholder approvals

S&P Moody’s FitchMacquarie Group Limited (NOHC) A- A2 A

Macquarie Bank Limited AA1*

*Positive ratings outlook post restructure

A+

31

Proposed establishment of Macquarie Group Limited (NOHC) on track

Macquarie’s strong emphasis on risk management to continue to apply throughout the Group

Macquarie Group Limited will be regulated by APRA as a NOHC

As previously advised:

— No major change to senior management or business strategy

— No significant release of capital anticipated

Further details to be contained in Explanatory Memorandum to be sent to shareholders in late September

32

Agenda

Overview





Appendices




33

Comment on global market conditions

Credit markets

— Significant deterioration in global debt capital markets’ ability to transact and fund structured debt

— Funds managers and other intermediaries are preserving liquidity – sharply reduced appetite for financial intermediary term investments

— Banks are now funding much of what used to be placed in the non-bank sector

— Transaction levels are lower

— Credit spreads have widened and cost of funds has increased

— Credit markets are distinguishing much more between regulated and non-regulated financial intermediaries

— Quality funding transactions are still taking place on satisfactory terms

Equity markets

— High volatility in equity markets globally

— Very high trading volumes in Asia and Australia (retail and institutional)

— Future impact of credit market disruption is uncertain

34

Industry transaction flow

— M&A cautious

— ECM subdued

— Reduced private equity activity

Global real estate

— US residential prices have suffered and volumes have fallen

— Rising spreads affecting mortgage rates generally

— Investor interest remains strong across all non-residential sectors

— Upturn in Australian east coast residential ‘inner ring’

— Significant funds available for appropriate investment

Volatility positive for most global financial markets activities except in debt capital markets where transaction volumes, liquidity and debt book positions have been impacted by broader market turmoil

Australia and Asia much less affected than US or Europe

Continuing competitive environment for staff

Comment on global market conditions

35

Conservatively capitalised and operating very profitably

Conservatively capitalised

— Tier 1 capital ratio at 31 August in excess of 15%

Well funded

All Groups are operating profitably

No unusual provisions or write downs

Businesses are diversified by product and geography

Continuing to grow staff – currently approximately 11,000*

Held For Sale assets on balance sheet: $A628m at 31 August 2007 ($A1,370m at 30 September 2006)

— Expect to realise for greater than book value

Risk-weighted asset growth slower

Expect strategic opportunities in the current environment

* At 31 August 2007

36

No unusual trading exposures

Main business focus is making returns by providing services to clients rather than by principal trading

No material exposures not already known to investors

No problem trading exposures

No material problem credit exposures

No exposure to Structured Investment Vehicles (SIVs)

Only modest holdings of AAA and AA rated CLOs and CDOs ($US300m approx)

No problems with debt underwritings

No underwriting of leveraged loans

Very little underwriting of corporate loans

Only modest credit exposures to the hedge fund industry

37

All Groups operating profitably

Investment Banking Group

— M&A and ECM pipelines reasonable

— Very strong M&A completion in first quarter (to June)

— Australian ECM activity lower than first quarter - partly seasonal

— Solid pipeline in Asia

— Cash equities – excellent volumes in Australia and Asia

— Profitable asset sales in progress

— Continued growth in Investment Banking Funds and assets performing well (See slides 40-41)

Equity Markets Group

— Benefiting from current volatility

— Generally high trading volumes in Australia and Asia

38


Treasury and Commodities

— Benefiting from current volatility

— Increased volumes across most businesses except Debt Markets

Real Estate Group

— All major businesses continue to perform well

— Some profitable disposals completed

— Continued growth in Real Estate Funds and assets performing well (See slides 40-41)

— Well positioned to capitalise on counter-cyclical opportunities associated with stress in some market sectors

39


Financial Services Group

— Record retail broking volumes

— Large June quarter inflows into Wrap and Cash Management Trust due to superannuation reforms ($A17b)

— Seasonal outflows post June 30 as expected

— CMT up 26% from $A14.1b (31 Mar 2007) to $A17.7b (31 Aug 2007); Wrap up 13% from 23.2b (31 Mar 2007) to $A26.2b (31 Aug 2007)

Funds Management Group

— Good fund performance relative to benchmarks

— Credit funds performed especially well relative to market

Banking and Securitisation

— Record volumes in margin lending but expecting more subdued growth for remainder of the year

— Launch of credit card business in April 2007

— Deposit volumes well up

— Challenging funding markets for mortgages but high quality assets

40

Continued growth of specialist funds

Asset Performance

— Assets continue to perform well

Refinancings

— Still being achieved on reasonable terms

— Investment Banking Funds: approximately 2% of total asset debt due for refinancing over next 12 months

— Real Estate Funds: approximately 3% of total asset debt due for refinancing over next 12 months

Acquisition Pipeline

— Track record and experience position funds well to pursue opportunities

— Deep expertise in debt markets

— Strong investment discipline

— Significant capital available for investment

41

Continued growth of specialist funds

Capital raised from investors

— $A12.4b total funds raised April to August 2007 (77% international, 77% unlisted)

— $A4.0b for Investment Banking Funds* (72% international, 35% unlisted)

— $A2.8b for Real Estate Funds^ (88% international, 91% unlisted)

— $A5.6b of other specialist funds (including Financial Products)

— Other fund raisings in progress

Significant capital available for investment

— Investment Banking Funds $A9.6b**

— Real Estate Funds approx $A3.7b^

New funds being developed across existing and new markets

As at 31 August 2007. * Capital raised by Macquarie and joint venture fund manager partners, including approx. A$1b of Exchangeable Convertible Bonds (ECBs) issued by MCG. **Listed funds - cash available for investment; unlisted funds-investor commitments less capital invested or committed to investments. For jointly managed funds the amount is representative of Macquarie's share in the JV manager. ^Macquarie and associates

42

Outlook – expect record half year result for the six months ending 30 September 2007

Expect record first half, up approximately 40% on pcp

Expect second quarter to be up on pcp; as in most years, down on very strong first quarter

Investors should exercise caution in drawing inferences from the expected first half result for the full year result especially because of difficulty in predicting market conditions for the remainder of the financial year

Planning for strategic initiatives:

— Group level management and central strategy unit tasked to identify opportunities

— Slower risk-weighted asset growth

— Continuing to hire quality staff especially in areas where we see special opportunities

— Possible boutique acquisitions

Appendix

44

Agenda

Overview





Appendices




45

Operating income49% increase on prior year to $A7.2b

0

1,000

2,000

3,000

4,000

5,000

6,000

7,000

8,000

2002 2003 2004 2005 2006 2007

$Am

Asset and equityinvestmentrealisations

Other income

Net interest income

Net Trading income

Fee and commissionincome

Years ended 31 March

46

Fee and commission income25% increase on prior year to $A3.5b

0

200

400

600

800

1000

1200

1400

Base fees Performance fees M&A, Advisoryand Underw riting

Brokerage andCommissions

Wrap and OtherAdministration Fee

Income

Financial Products Banking, Lending &Securitisation

Other fee andcommission income

$Am

Mar 2005

Mar 2006

Mar 2007


47

Performance fees

Funds management incomeAUM up 41% on prior year to $A197b

Base Fees up 42% on prior year to $A785m

0

20

40

60

80

100

120

140

160

180

200

2002 2003 2004 2005 2006 2007

AUM ($Ab)

0

100

200

300

400

500

600

700

800

Base Fees ($Am)

Infrastructure

Real estate

Other specialist

Securities - retail

Securities - wholesale

Base fees

AUM & Base fees


0

100

200

300

400

500

600

700

800

2002 2003 2004 2005 2006 2007

$Am

MMGMAPMCGMICMIGMIIFMPTReal EstateOther specialistFSG/FMG

48

Specialist fund capital raisings

$Ab

0

2

4

6

8

10

12

14

16

18

20

22

FY07 Apr - Aug 07

Region FY07 Raising ($Ab)

Africa & Middle East 0.49

3.33

4.49

5.20

8.13

$A21.6b

-

1 Apr – 31 Aug Raising ($Ab)

Asia Pacific 5.80

Australia 2.81

TOTAL $A12.4b

Americas 1.80

Europe 2.06

Funds raised by Macquarie and joint venture fund manager partners, including equity raised via DRP. Including committed, uncalled capital. Capital raised includes approx. A$1b of Exchangeable Convertible Bonds (ECBs) issued by MCG

$A21.6b raised over the 12 months to 31 March 07

— 79% from international investors

— 87% for unlisted funds or syndicates

$A12.4b raised over the 5 months to 31 August 07

— 77% from international investors

— 77% for unlisted funds or syndicates

49

Net trading income20% increase on prior year to $A1,047m


Mar 07 $Am

Mar 06 $Am

Change %

Equities 765

295

120

112

1,292

(61)

(184)

1,047

526 45

Commodities 197 50

Foreign exchange 152 (21)

Interest rate products 84 33

Total Trading Income(before adjusting for accounting impacts)

959 35

Revaluation of economic hedges 29 (310)

Accounting for swaps (112) 64

Net Trading Income (as reported) 876 20

Trading income (before adjusting for accounting impacts)

0

200

400

600

800

1,000

1,200

1,400

2002 2003 2004 2005 2006 2007

$Am

Interest Rate Products

Foreign Exchange

Commodities

Equities

50

Net interest income23% increase on prior year to $A728m

Loan assets

0

5

10

15

20

25

30

2002 2003 2004 2005 2006 2007

$Ab

Property

Mortgages

Margin lending & equities lending

Banking

Treasury & Commodities

Macquarie Capital: Leasing

Macquarie Capital: Other

Clearing houses

Other lending

Mar 2007 Mar 2006

Loan assets 495 19,607 2.52 406 14,574 2.78

Interest $Am

Average Volume

$AbSpread

%

116 0.52

0.35

Total interest bearing assets 715 582

104

(171)

Interest $Am

Average Volume

$AbSpread

%

Mortgage assets

544

22,248

29,645

97

79

(102)

480

Trading assets and other securities

0.5417,881

Non-interest bearing assets

0.4617,242

Total

544

(184)

728

Mar 07$Am

Accounting for swaps reported as trading income (112)

Mar 06$Am

592Net interest income(as reported)

480Net interest income(adjusted for accounting impacts)

Need to consider accounting for swaps in net interest margin analysis –provides true economic position

51

Mar 07 $Am

Mar 06 $Am

306(Akeler JV assets, Arqiva, Brussels Airport, Childcare businesses, CH4 Gas, Dyno Nobel, East London Bus Company, Macquarie Small Cap Roads, net profit interests, SFE shares, Steampacket Group, Taiwan Cable TV Investments, RP Data, other infrastructure and real estate)

Other

Other

Gains on Macquarie Goodman Group 302 - 300

214

(18)20

522

Profit on disposal of assets and equity investments 1,098 345

Net income from businesses held for sale 41 -

Dividends, distributions and equity accounting income 326 50(MAp, MGQ, MCW, MOF, MCG, MIIF, MMPR, etc)

991,866

Mar 05 $Am

(34)Total 661

Asset & equity investment realisations

Income from asset & equity investmentrealisations and other transactions

2007 result assisted by many asset realisations, including a number of significant onesNormal part of our business, but asset sales are a swing factor

52

Agenda

Overview





Appendices




53

Growth in all business segments

Asset & wealth management: 27%*Investment banking: 42%*Income up 75% on prior year Income up 39% on prior year

Financial markets: 21%*Income up 34% on prior year

Lending: 10%*Income up 23% on prior year

Commodities

FX, futures, treasury and debt markets

Mergers and acquisitions, advisory, underwriting and

principal transactions

Financial products

Equipment and other leasing

Other lending

Investment banking, real estate and other specialist funds

Equity derivatives

Institutional cash equities

Banking and securitised lending

Retail and wholesale funds management and private client broking

Real estate lending

* Represents contribution to total income. Year to 31 March 2007

54

Good climate for investment banking‒ Australian and Asian equity markets

performed stronglyLarge asset realisations and major transactionsStrong performance by Australian and Asian cash equities businesses

Investment bankingIncome up 75% on prior year

Year to 31 March 2007. Investment banking segment includes M&A, advisory, underwriting, institutional cash equities and financial products.


55

31% of total operating income; 12% of total operating income relating to infrastructure

approx. 3.5% of total operating income from advisory and underwriting fees derived from investment banking and real estate funds* less than 1% of total operating income derived from MBL asset sales to investment banking and real estate funds

Year to 31 March 2007. Investment banking segment includes M&A, advisory, underwriting, institutional cash equities and financial products. * Including joint venture managed funds.

Investment banking -M&A, advisory, underwriting and principal transactions


56

Asset & wealth managementIncome up 39% on prior year

Year to 31 March 2007. Asset and wealth management segment includes investment banking, real estate & other specialist funds, retail & wholesale funds management and private client broking. 1 Annualised return based on all capital raised, distributions paid and valuations (market capitalisation for listed funds and net asset value for unlisted funds) for IBF managed funds since inception to 31 March 2007 (listed funds as at 31 March 2007, unlisted funds as at 31 December 2006). Calculated in AUD. Cashflows converted at historic rates. 2Accumulated return on the Macquarie LPTs is calculated assuming that an investor acquired an initial portfolio on 31 March 1997 (weighted by market capitalisation at that date) and then participated (pro rata) in every capital raising undertaken by each Macquarie LPT over the period shown. Macquarie LPTs currently included in the index are MOF, MCW, MLE, MDT, MPR. Source Macquarie Real Estate as at 31 March 2007.


Assets under management up 41% to almost $200b and resulting base fee growthInvestment banking funds have delivered a compound annual return of 20.2% since inception 13 years ago1

Listed property trusts have delivered compound annual return of 17.9% over the past 10 years, outperforming most major global REIT indices2

Strong performance from Australian retail brokingOnly a small contribution from specialist funds performance fees

57

Asset & wealth managementInvestment banking, real estate and other specialist funds

7% total operating income derived from investment banking and real estate funds base fees and performance feesVery few assets purchased by funds from Macquarie

Investment banking funds – less than 1% by value of assets during FY07Real estate funds – less than 8% by value of assets during FY07

Sales between funds nominalInvestment banking funds: only two out of 33 acquisitions from another fund in FY07 (or only 5% by value)Real estate funds: no real estate transfers between funds in FY 2007Subject to rigorous independent valuation and review process

Average gearing of assets managed by specialist fundsInvestment banking funds – 58% (debt / debt + equity)Real estate funds – 48% (debt / debt + equity)

Year to 31 March 2007. Asset and wealth management segment includes investment banking, real estate & other specialist funds, retail & wholesale funds management and private client broking.


58

Financial marketsIncome up 34% on prior year

Continued strong activity across financial and commodity markets

Year to 31 March 2007. Financial markets segment includes commodities, FX, futures, treasury, debt markets and equity derivatives.


Conditions in some equity derivative markets more challenging

59

Mortgages portfolio volumes up 24% on prior yearLoan portfolio volume up 22% on prior yearNo exposure to US subprime mortgage market

Year to 31 March 2007. Lending segment includes banking & securitised lending, equipment & other leasing, real estate lending and other lending.


LendingIncome up 10% on prior year

60

Agenda

Overview





Appendices




61

Corporate structure BEFORE

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62

Corporate structure AFTER

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63

Governance

S h a re d S e r v i c e s(2 878 sta ff )

E x e c u t i v e C o m m i t t e e

B o a r dD a v id S C la rk e (N on-E xe c u tive C ha irm a n )

A lla n E M oss (M a na g ing D ire c tor)La u re nc e G C ox

Pe te r M K irby1

C a th e rine B L iv ingstone 1

A lla n E M ossAndre w J D ow ne

G re g C W a rdK im B u rk e

M ic h a e l C a ra pie t

H Ke v in M c C a nn 1

J ohn R N ila nd1

H e le n M N uge n t1

Pe te r H W a rne 1

N ic ho la s W M ooreN ic k R M in oguePe te r J M a he rW R ic ha rd She ppa rd

E x e c u t iv e C o m m it t e e

N o n - B a n k in g H o ld C oB a n k in g H o ld C o

O p e r a t io n s

O p e r a t io n sM a c q u a r ie B a n k L im i t e d

B o a r d D av id S C larke (NEC )

W R ichard S hep p ard (M D )A llan E M o s s

Laurence G Co x

P eter M K irb y 1

W R ichard S hep p ardA llan E M o s s

A nd rew J D o w neG reg C W ard

Cather ine B Liv ing s to ne1

H K ev in M cCann1

Jo hn R N iland 1

He len M Nug ent1

P eter H W arne 1

N ick R M ino g ueP eter J M aherK im B urk e

M a c q u a r i e G r o u p L im i te d

1. Independent non-executive director

64

Indicative pro-forma financials

31 March 2007 Pro forma consolidated balance sheet (summary)*($Am)

Banking Group

Non-Banking

Group MGL (Parent

entity) Consolidation

adjustments

Pro-forma Macquarie

Group

Total assets 120,288 18,394 28,029 (28,036) 138,675

Total liabilities 115,914 15,242 9,154 (9,154) 131,156

Equity 4,374 3,152 18,875 (18,882) 7,519

31 March 2007 Pro forma consolidated income statement A$ million

Banking Group

Non-Banking Group

Consolidation adjustments

Pro-forma Macquarie

Group

Total operating income 3,276 3,885 (37) 7,124

Total operating expenses (2,557) (2,710) 37 (5,230)

Net profit before tax 719 1,175 - 1,894

Income tax expense (61) (305) - (366)

Net profit after tax 658 870 - 1,528

Profit attributable to equityholders 603 868 - 1,471

Profit attributable to ordinary equityholders 572 868 - 1,440

*Certain equity transactions occurring after 31 March 2007 have not been included in the pro-forma balance sheet on the basis that they are not connected with the proposed Restructure. These post balance date transactions include the May 2007 placement and share purchase plan of approximately A$829 million and the declaration and subsequent payment of the Macquarie Group’s 2007 final dividend of A$482 million. The equity of MBL has been split between the Banking and Non-Banking Groups. This has been reflected as a reduction of capital from the Banking Group to MGL. MGL has subsequently injected this capital into the Non-Banking Group as a capital contribution

65

Funding structure

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Documents

Macquarie Bank Limited · 2 Disclaimer The name "Macquarie" refers to the Macquarie Group, which comprises Macquarie Bank Limited and its worldwide subsidiaries, affiliates, and the