Macquarie Securities Group Stevan Vrcelj Group Head

Macquarie Securities Group Stevan Vrcelj Group Head

Macquarie Securities Group Innovative specialists leveraging Asia-Pacific insights to the world Global institutional securities house with strong Asia-Pacific foundations covering sales, research, ECM, execution and derivatives activities Full-service cash equities in Australia, Asia, South Africa and Canada with offerings in US and Europe. Specialised derivatives in key locations globally Key specialities: infrastructure and utilities, TMET, resources (mining and energy), industrials and financial institutions 25+ years Knowledge and experience in Asia-Pacific 1,042 staff 1 across 19 countries 200+ equity research analysts covering 2,220+ stocks No.1 for Australian Equities in Australia 2, US and Europe 3 Equity capital markets Execution Arbitrage Macquarie Securities Group No.1 Asia-Pacific Execution Quality 4 No.2 Australian ECM 5 Research Corporate Access Derivatives Equity finance No.1 warrants market share Singapore 6 No.2 in Thailand 6 1. As at 31 Dec 13. 2. Peter Lee Associates Survey of Asian/Australian Institutional Investors 2013 Australian Equities. 3. Greenwich Survey of US Institutional Investors Australian Equities and Greenwich Survey of European Institutional Investors 2013 Australian Equities. 4. Abel Nosser 2013. 5. Bloomberg league tables for the 12 months to 31 Dec 13. 6. Local exchanges. PAGE 2

Cash equities Key differentiators Research coverage Execution Liquidity Agency focused Recognised by Bloomberg as a top energy forecaster No.1 execution quality in Asia in 2011, 2012 and 2013 1 'The Trade Asia' award for service to Asian clients for second year running 1. Abel Nosser. PAGE 3

Cash equities Research...deep local expertise Utilities & Industrials Technology, Media & Telecommunications Financial Services Oil & Gas Real Estate Infrastructure Commodities 200+ equity analysts with local presence in 18 countries 2,220+ stocks under coverage Multiple award winner across all regions PAGE 4

Cash equities Highly experienced ECM team focused on sectors with deep global expertise Convertibles and hybrids Initial Public Offerings PIPEs 100 ECM executives At-the-market offerings ECM Follow-on Raisings Rights Offerings 15 offices $US400b raised since 2008 1 1. From 1 Jan 08 to 31 Dec 13. PAGE 5

Cash equities Australia/New Zealand: Macquarie completed more high value IPOs over $A70m in 2013 than any other investment bank, raising a total of $A6.7b 14 12 $A6.7b raised 12 Number of IPOs over $A70m 10 8 6 4 2 $A2.5b raised 8 $A4.8b raised 6 $A3b $A1.3b raised raised 5 5 $A780m raised 3 $A2.4b raised 2 0 Macquarie Peer 1 Peer 2 Peer 3 Peer 4 Peer 5 Peer 6 Source: Dealogic, for the 12 months to 31 Dec 13. Peers include Credit Suisse, Deutsche Bank, Goldman Sachs, J.P. Morgan, Morgan Stanley, UBS. Any reference to third parties and/or their logos is for identification purposes only and does not represent any support or endorsement for the products/services referred to. PAGE 6

Cash equities Corporate access Conferences Non deal roadshows Marketing 2013 Global corporate access 49,525 meetings 1,626 non deal roadshows 1,461 client roadshows 69 conferences & corporate days 5,600 institutional investors 1,300 corporate participants PAGE 7

Cash equities Global reach...local expertise Execution Program Trading Transitions DMA Algos CSA Equity Finance ADR ETF Trading Access to over 100 liquidity venues PAGE 8

Cash equities Complementary execution businesses...global reach...local expertise Electronic execution Provides traders with a comprehensive suite of algorithms, tools and analytics; enabling access to over 100 liquidity venues throughout 33 countries through an intuitive global interface Portfolio trading Consult with Institutional clients to develop optimal trading strategies, then implement portfolio trades across more than 50 markets globally Transition management Partner with asset owners to minimise transaction risk and maximize investment performance when transitioning assets between managers and asset classes Client commission management Work with clients to effectively manage the collection and distribution of commission dollars PAGE 9

Derivatives Derivatives Structured Equity Solutions Client Equity Finance Arbitrage No.1 listed warrants in Singapore, No.2 in Thailand 1 No.1 market share in key Commodity and Asian ETFs 1 Top 3 broker in European commodity ETFs 1 Traded $A9b notional in ETFs 2. Able to create/redeem over 85 ETFs in Asia, and over 790 ETFs in Europe No.1 GDR broker in Indonesia 3 Arranged and executed structured equity financing deals for Japanese clients to raise 9.2b in new equity 4 1. Local exchanges. 2. For the period 1 Apr 13 to 31 Dec 13. 3. Bloomberg (using rank function on the major names for traded volumes excluding trading firms) for the 3 months ended 31 Dec 13. 4. For the three months ended 31 Dec 13. PAGE 10

Derivatives Innovative Over 237 million hits in 2013 on HK Warrants website up 300% on 2012 with 1.7 million unique visitors Award winning service Capital Weekly Pro-Choice Warrant Issuer service award 2013 Quamnet Outstanding Warrant Issuer Award 2013 Yahoo! 'Emotive Brand' award best brand advancement of the year Top Warrant Issuer Award 2013 Note: Any reference to third parties and/or their logos is for identification purposes only and does not represent any support or endorsement for the products/services referred to. PAGE 11

Evolution: History of MSG earnings Net profit contribution 1 $Am 1,250 1,000 750 500 Full Year Half Year Total operating income and expenses $Am 2,500 2,000 1,500 Other Income (including Derivatives) ECM Brokerage / commissions Operating Expenses 250 1,000-500 (250) FY08 FY09 FY10 FY11 FY12 FY13 1H14 - FY08 FY09 FY10 FY11 FY12 FY13 1H14 1. Net profit contribution is operating income less operating expenses and is reported before profit share, income tax and unallocated corporate costs. PAGE 12

Evolution: Legacy business update Since 2011 Legacy businesses 1 $Am Exited 12 Businesses globally Significantly 5 scaled back other businesses - (20) (40) 2H12 1H13 2H13 1H14 (60) 1H14 headcount 26% on 1H11 1H14 expenses 30% on 1H11 (80) (100) (120) (140) Continued review and closure of non-performing and non-core businesses 1. Net losses from legacy businesses on a half yearly basis. PAGE 13

Go forward Continuing focus on improving returns from go forward businesses Select growth initiatives that are tightly aligned to our core business Investment in infrastructure initiatives PAGE 14

Challenges and opportunities Ongoing regulatory change: OTC derivative reforms, regulatory reporting requirements, banking regulations IT investment in core infrastructure and platforms Industry wide acceleration in compliance obligations and costs Asset allocation, electronic execution, product and service innovation Rapidly evolving competitive landscape PAGE 15

Summary 1 2 3 4 MSG has evolved and adapted to market conditions Maintained strong equities franchise across diverse geographies and products and services Scope for organic growth, focussed on core competencies and expertise Well positioned for an improvement in market conditions particularly in Asia-Pacific PAGE 16