Macquarie : 2022 Chairmans Address

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CHAIRMAN'S ADDRESS

MACQUARIE GROUP LIMITED ANNUAL GENERAL MEETING 2022

28 JULY 2022

GRAND HYATT HOTEL, MELBOURNE

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Introduction

Good morning everyone, and welcome to Macquarie Group's 2022 Annual General Meeting. I am Glenn Stevens, and I am privileged to Chair the Board of your company. I note that a quorum is present and formally declare the meeting open.

I'd like to begin by acknowledging the Traditional Owners of the land on which we meet today, the Wurundjeri people of the Kulin Nation and pay my respects to Elders past and present.

You have just heard in the videos a little about our retail banking business and about the way our teams worked together on the acquisition of a US asset management firm, Waddell and Reed.

And after our refreshment break you'll also be hearing about some of the work we're doing in our Commodities and Global Markets business and in Macquarie Capital. I hope those provide you with some insight into our activities.

This meeting is being held in Melbourne for the first time since 2017, continuing a tradition of rotating our meetings between Sydney and Melbourne. For the past two years, we've held our meetings with limited physical attendance due to COVID-19 restrictions, with the majority of shareholders attending remotely.

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Macquarie continues to monitor the ongoing risks of COVID-19 and the Board has decided to hold this year's meeting in a hybrid format, ensuring that all are able to participate in the meeting and to ask questions or make comments online. It's good to see some shareholders joining us here in Melbourne and we look forward to your participation.

Joining me today is your Board, including Non-Executive Directors Jillian Broadbent, Phil Coffey, Michael Coleman, Michelle Hinchliffe, Rebecca McGrath, who is joining remotely, Mike Roche, and Nicola Wakefield-Evans. Sitting alongside me is Managing Director and Chief Executive Officer Shemara Wikramanayake, Chief Financial Officer Alex Harvey, and Company Secretary Dennis Leong.

Also present are Macquarie Bank Non-Executive Director Ian Saines and members of Macquarie's Executive Committee who are joining us either in person or remotely.

Today's meeting will proceed as follows:

• I will outline the key highlights of the past financial year;
• Shemara will take you through the Group's 2022 result, update you on the first quarter of the current financial year and the outlook for the remainder of the year;
• We'll hear from Directors seeking re-election to the Board today, Jillian Broadbent and Philip Coffey; and
• We will also hear from Michelle Hinchliffe who is seeking election for the first time.

I will then formally open the polls.

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At that point, we will break for about half an hour. During this time, those attending in person will be able to meet with members of the Board and senior management over refreshments - we encourage you to take this opportunity particularly if you are unable to stay for the formal business. Those of you participating online will be notified on your screen when the meeting is about to recommence.

We will then reconvene for the final part of the meeting to discuss the formal items of business and take questions on all items at the same time. To give all shareholders the opportunity to speak, we will take written questions received prior to the meeting and questions from online participants first, giving preference to those who have not already asked a question. There will be ample opportunity for shareholders to address the meeting if you wish to do so.

I remind you that recording devices, photographic equipment and mobile phones cannot be used during the meeting. The meeting is being webcast live on the Macquarie Group website and you will also be able to view a recording of the meeting there from this evening.

Those of you attending online can send in your questions from now by clicking on the speech icon on your screen. Please note that regardless of when you submit your question, we will address all of them during the formal business of the meeting, as is our customary practice. We will try to ensure that all topics of interest are addressed in our responses. Questions submitted online may be moderated or amalgamated if there are multiple questions on the same topic.

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FY22 Financial performance

Shemara will take you through Macquarie's performance in detail, but I'll start by outlining a few key highlights from the year.

The company's performance reflects strong results across the organisation as our operating businesses and support groups again delivered on their commitment to supporting our clients, partners and communities.

The Group earned a record profit of $A4.7 billion in FY22, up 56 per cent on FY21, which itself had been a record year. Macquarie also reported strong growth in key financial metrics including operating income and earnings and dividends per share.

FY22 Dividend

Shareholders received a full-year dividend per ordinary share of $A6.22, franked at 40 per cent. This was up from $A4.70 per share last year.

50 per cent of earnings - or about $A2.4 billion - was returned to shareholders in dividends over the year, with the dividend payout ratio balancing returns to shareholders with the opportunities management sees to invest in future growth. Our policy of a 50 to 70 per cent dividend payout ratio remains unchanged.

Risk culture and conduct

I now turn to risk culture and conduct, an area in which the Board and management spend considerable time.

Macquarie's strong performance over 53 years has come by empowering teams to harness their capabilities to serve clients, investors and

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communities. This opportunity is balanced with strong accountability for owning and managing risks. The primary responsibility for risk resides at the individual and business unit level. Robust independent oversight is provided by our Risk Management Group, with further independent and objective risk- based assurance provided by the Internal Audit division. Integrity underpins everything we do.

The risk management framework is supported by a remuneration framework and consequence management process to encourage appropriate behaviour and discourage inappropriate behaviour.

APRA's new Prudential Remuneration Standard, known as CPS 511, will come into effect for Macquarie on 1st January 2023. The Board undertook a review of the remuneration framework to address CPS 511 and its requirements, considering the perspectives of shareholders and regulators, global peer group comparisons and the increased global competition for talent in Macquarie's areas of activity. Changes are being implemented in a phased approach and full details are disclosed in the Remuneration Report.

While our businesses have been busy, so too have our support areas, and their collaboration in maintaining risk conduct and culture is one important example.

Leadership and staff training has included a focus on resiliency and inclusive leadership. Comprehensive Regulatory Awareness training was rolled out to staff responsible for compliance and engagement, with a focus on the increasing expectations of regulators in our Regulatory Engagement Principles.

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