Macquarie Group (Macquarie) is a global provider of banking, financial, advisory, investment and funds management services.

Macquarie’s main business focus is making returns by providing a diversified range of services to clients. Macquarie acts on behalf of institutional, corporate and retail clients and counterparties around the world.

Macquarie Group Limited is listed in Australia (ASX:MQG) and is regulated by APRA, the Australian banking regulator, as the owner of Macquarie Bank Limited, an authorised deposit taker. Macquarie also owns a bank in the UK, Macquarie Bank International, which is regulated by the FSA. Macquarie's activities are also subject to scrutiny by other regulatory agencies around the world.

As an owner and manager of significant community assets, Macquarie works closely with governments around the world to deliver important services including transport, roads, airports and utilities. Specialist funds which manage these assets contributed approximately 13 per cent of Macquarie’s total underlying operating income for the year ended 31 March 2009.

Macquarie’s approach to risk management is long-standing. Strong risk management practices are embedded in business unit management with central oversight of credit, market, funding, compliance and operational risk. These, together with committed, quality staff are key drivers of Macquarie’s success.

Founded in 1969, Macquarie operates in more than 70 office locations in 26 countries. Macquarie employed approximately 12,700 people and had assets under management of $A243 billion at 31 March 2009.

Macquarie Group Limited

Macquarie Bank Limited

Macquarie’s business groups and divisions

Macquarie has five operating groups and two operating divisions within which individual businesses operate. The businesses specialise in defined product or market sectors and work in close cooperation. Great emphasis is placed on a client's relationship with Macquarie as a whole.

All business activities are encompassed by a strong risk management framework and are facilitated by a number of Macquarie-wide support groups.

Groups

Macquarie Capital (MacCap)

Macquarie Capital comprises Macquarie Group's corporate advisory, equity underwriting and specialised funds management businesses.

With offices in Australia, New Zealand, Asia, North America, Europe, South Africa and the Middle East, Macquarie Capital provides a depth of services including specialist capabilities in:

• Mergers and acquisitions, takeovers and corporate restructuring advice
• Equity capital markets, equity and debt capital management and raising
• Specialised funds management (including infrastructure and real estate funds)
• Debt structuring and distribution
• Private equity placements
• Principal products

On 1 January 2009, most of Real Estate Group platform was merged with Macquarie Capital to create an integrated real estate platform, in order to maximise domestic and international real estate growth opportunities (including funds management, advisory and principal activities) and to leverage expertise from all Macquarie Capital industry and product groups.

Macquarie Securities Group (MSG)

Macquarie Securities Group was formed in April 2008 by merging the operating activities of the Equity Markets Group (excluding the Fund Products Division) and the Macquarie Capital Securities Division of Macquarie Capital.

MSG comprises three divisions:

The Cash Division operates as a full service institutional cash equities broker in the Asia Pacific region. In the rest of the world it operates as a specialised institutional cash equities broker. It provides Equity Capital Markets through a joint venture with Macquarie Capital Advisors.

The Delta1 Division combines the group's equity finance, arbitrage trading and synthetic product businesses. The division services institutional and hedge fund clients across a range of markets through a range of products and services including securities borrowing and lending, and access products.

The Derivatives Division offers equity-linked investments, trading products and risk management services to wholesale and retail clients.

Treasury and Commodities Group (TCG)

Macquarie's Treasury and Commodities Group encompasses:

• Commodity, energy and environmental financial products, physical and derivatives structuring and trading
• Commodity (metals, bullion and agricultural) and energy finance
• Futures (listed derivatives) execution and clearing and platform provision
• Debt arrangement, structuring and placement activities
• Interest rate and credit derivatives structuring and trading
• Foreign exchange trading, platform provision and structuring
• Emerging market bond broking and advisory services

Macquarie Funds Group (MFG)

Macquarie Funds Group is a full service fund manager with over 25 years experience and offices in 16 locations around the world. The group offers a range of investments for both retail and institutional investors across a variety of asset classes. These include:

• Equities
• Listed Infrastructure
• Private equity and hedge fund of funds
• Listed real estate
• Currencies
• Fixed income
• Cash

MFG was formed in August 2008 from the merger of the funds and fund-based structured product businesses within the Funds Management Group, Equity Markets Group's Funds Products Division and Macquarie Capital Products Division.

Banking and Financial Services Group (BFS)

Banking and Financial Services products and services include:

• Cash Management Trust (CMT), Premium Portfolio Service and Coin Financial Planning Software
• Full service stockbroking
• Relationship banking services for businesses and professionals
• Private banking and executive wealth management
• Private portfolio management
• Mortgage management
• Credit cards (issuer and wholesale service provider)
• Life insurance
• Funds management and administration
• Online broking

Divisions

Corporate and Asset Finance (CAF)

Corporate and Asset Finance provides innovative and traditional capital, finance and related services to clients operating in selected international markets. With offices in Australia, New Zealand, Asia, North America and Europe, Corporate and Asset Finance specialises in:

• Leasing and asset finance
• Tailored debt and finance solutions
• Asset remarketing, sourcing and trading

Real Estate Banking Division (REB)

The Real Estate Banking Division activities encompass listed and unlisted real estate funds management, asset management, real estate investment, advisory, development management and real estate project and development financing. At 31 March 2009, over $A14.8 billion in real estate fund assets were managed by the division and its associates.

REB has offices in Australia, China, South Africa, South Korea, the UK and the US.

REB was formed through the merger of the real estate financing and investment businesses.