Elizabeth OElizabeth O’’Leary, Division DirectorLeary, Division Director

Head of Human ResourcesHead of Human Resources28 November 200528 November 2005

Macquarie Bank Limited Macquarie Bank Limited ––Perpetuating Culture through Graduate HiringPerpetuating Culture through Graduate Hiring

Presentation to Presentation to Tripartite Conference of GCA, NAGCAS and AAGETripartite Conference of GCA, NAGCAS and AAGE

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Agenda

2. Our corporate culture

3. Using Graduate recruitment to perpetuate culture

1.Macquarie ‘s profile and performance

4. The future challenges

Holey Dollar chosen as a symbol of the Macquarie Group

1969 – Hill Samuel opened in Sydney

Macquarie Bank Limited was established in February 1985

MBL established in 1985

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Dublin FrankfurtLondonParisGeneva Milan

MunichVienna

Cape Town

Johannesburg

Jakarta

Kuala Lumpur

Bangkok

Hong Kong

SingaporeLabuan

ManilaHsinchuTaipei

ShanghaiTianjin

Beijing SeoulTokyo

VancouverSeattle

San FranciscoSan Jose

Los Angeles

San DiegoPalm SpringsHouston

ChicagoMemphis

CharlestonJupiter

New YorkBoston

Toronto

AucklandWellington

Christchurch

Sao Paulo

EUROPE ASIA NORTH AMERICA489 staff 901 staff 490 staff

Today we have over 7100 staff in 23 countries

AFRICA AUSTRALIA NEW ZEALAND SOUTH AMERICA24 staff 5088 staff 103 staff 22 staff

Carlsbad

Abu Dhabi

MIDDLE EAST8 staff

At 30 September 2005. Note: Post balance date - Physical gas trading business acquired in LA with 59 staff (Oct 05)

Mumbai

Rome

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Canada407 ETRAltaLinkCardinal PowerSea to SkyLeisureworld*

Roads Utilities

USADetroit Windsor TunnelSR125 SouthChicago SkywayDulles Greenway*Parking Company of AmericaAvPORTSAtlantic AviationMichigan Electric Transmission Co.Thermal ChicagoNorthwind AladdinThe Gas Company* (Hawaii)Macquarie DDR **Macquarie ProLogis **Macquarie CountryWide **Macquarie Office**

Transport servicesProperty

South AfricaN3 Toll N4 Maputo Toll Bakwena Platinum Corridor

ItalyRome Airport

South KoreaSoojungsan TunnelKwangju 2nd Beltway Section 1 & 3Daegu-Busan ExpresswayBaekyang TunnelMachang BridgeIncheon ExpresswayCheonan Nonsan ExpresswaySeoul Chuncheon ExpresswayWoomyeonsan Tunnel*Daegu EastSeoul Subway #9Incheon Grand Bridge*Kukdong BuildingSchroder Asian propertiesMGPAKorean Independent Energy Corp.*CJ CableNet*

AustraliaGorodok Ethane PipelineProspect WaterDampier – BunburyMultinetUnited Energy Distrib.AlintaGas NetworksBroadcast AustraliaMacquarie Regional RadioworksTranstollMacquarie Direct PropertyMREEFSydney Airport

GermanyWarnow TunnelNMRE wind assetsMGPA

JapanHakone TurnpikeSchroder Asian propertiesMGPA

CommunicationsAirports

PortugalTagus CrossingsMGPA

Other

M1 (Eastern Distributor), M2, M4, M5, Westlink M7EastlinkMelbourne CityLinkAirtrain CitylinkAsia Pacific TransportMacquarie Direct InvRetirement Care AustraliaZip Inge*Macquarie OfficeMacquarie CountryWide **Macquarie Leisure **Macquarie Goodman **

New ZealandMacquarie Goodman **Macquarie CountryWide **Eldercare*

Managing important assets across the globe

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

SwedenArlanda ExpressEPRL wind assets

BelgiumMGPABrussels Airport

* Subject to financial and customary closing arrangements

MexicoMacquarie ProLogis **

Hong KongSchroder Asian propertiesMGPAMacquarie Goodman

ChinaFirst China Property GroupMGPARetail malls* (own, not managing)

** Some additional assets acquired since 1 April 2004

SpainMGPA

Acquired post 1 April 2004Acquired prior to 1 April 2004

UKM6 TollM1-A1 LinkBristol AirportBirmingham AirportExeter Airport*South East WaterWales & West UtilitiesNM Renewable EnergyEnergy Power Resources UKMacquarie Global Prop. Adv.Akeler JV assets*Arqiva (formerly NTL Broadcast)BBC Broadcast*Wightlink*

FranceEPRL wind assetsMGPA

NetherlandsNRE*Yellow Brick Road* Singapore

Schroder Asian propertiesAscendas – Macq. GoodmanPrime REIT retail malls*

LuxembourgMacquarie Global Property Advisors

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0

100

200

300

400

500

600

700

800

900

69 75 81 87 93 99 '05

Net Profit After Tax $m

Gain on formation of MGQ

Our success has been sustained

0

1

2

3

69 71 73 75 77 79

$m

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Foundations for success

Full service in Australia/broad investment banking in Asia Pacific/focused in Europe & the Americas

Commitment to growth

Focus on people

Remuneration systemSmall business entrepreneurial environment ‘Freedom within boundaries’ management structure

This approach has proven effective for over 30 years through many market conditions

management philosophy

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0

200

400

600

800

1000

1200

1400

1600

1800

1996 1997 1998 1999 2000 2001 2002 2003 2004 2005

MBL Accumulation Index

All Ords Accumulation Index

Inde

x

As at 18 November 2005, indexed at 29 July 1996

Strong returns to shareholders: 1,483% since listing

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0

0.5

1

1.5

2

2.5

3

3.5

4

FY 1996 FY 1997 FY 1998 FY 1999 FY 2000 FY 2001 FY 2002 FY 2003 FY 2004 FY 2005 1H06

$Ab

^ Excluding earnings on capital

1H06

Australian income

International income growing as a proportion of total income

International income

International staff up 32% from 30 Sep 2004 to over 2,00046% of total income

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Agenda

2. Our corporate culture

3. Using Graduate recruitment to perpetuate culture

1.Macquarie ‘s profile and performance

4. The future challenges

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Central to our culture…

Credit Risk Limits

Brand Management

Operational Standards

Market Risk Limits

Business

strategy

Compliance

… ‘freedom within boundaries’

Goals and ValuesWhat We Stand For

Integrity

Client Commitment

Strive for Profitability

Fulfilment for our People

Teamwork

Highest Standards

Integrity

The way we act underpins our success. Acting with integrity builds trust, resulting in better relationships and a better place to work

Success flows from our reputation for honesty and integrity and our ability to fulfil our promises

Client Commitment

Central to the success of Macquarie is our commitment to our clients

At Macquarie we understand the difference between our clients interests and wants

Strive for Profitability

Profit is ultimately why we are in business and we take pride in our profitability record

We seek to achieve consistently superior profitability by providing superior valueto our clients

Profitability is fundamental to our success

Fulfilment for our People

All employees are treated as individuals, deserving the respect of their subordinates, peers and superiors

Macquarie seeks to recruit the best people without discrimination or bias and advancement and remuneration are based solely on merit

Teamwork

To better serve our clients, Macquarie is organised into individual separate businesses

However, we are one bank, with one profit and one reputation and we must workco-operatively

Promoted through Macquarie Awards

Highest Standards

Superior returns are only achieved through the best work, which requires excellence, innovation and creativity.

There is no place in Macquarie for work which is not of the highest quality and we recognise that complacency, cutting corners and mediocrity are completely unacceptable.

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How we do things around here

Core ideology provides the glue that holds our organisation together as it grows, diversifies

and expands globally

Key challenges for our HR function:How do we perpetuate the culture internationally, amidst rapid growth and diversification?

What role does HR play in nurturing and protecting core culture?

How can our recruitment efforts support culture perpetuation?

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Agenda

2. Our corporate culture

3. Using Graduate recruitment to perpetuate culture

1.Macquarie ‘s profile and performance

4. The future challenges

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Global recruitment strategy

Asia - 13 locations

Europe - 12 locations

Americas –12 locations

Australasia - 10 locations

Strategy developed in Sydney, delivered locally to meet the growing demands of diverse businesses under one brand

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New Hire

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New

Hire

Num

bers

Australasia Asia Americas Europe

Overall recruitment activity

As at 31 March 2005:

Recruited 2,321 new staff in 2005, up 72% on 2004

Hiring of graduates/summer vacation students increased by 71% to 186 Bank wide

Unprecedented levels of recruitment related activities:

50,153 applications processed

3,601 psychometric assessments conducted, 27% offshore

Australia - Ranked as the highest volume corporate employment advertiser in the AFR

Global campus initiatives take hold

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Graduate hiring

Current responsibility for campus hiring in Australia, NZ, Hong Kong, Singapore, US and UK

Demand increase by 100% in 2005; summers, interns and graduates

Sourcing from faculties including accounting, actuarial studies, finance, mathematics, property, applied finance, engineering, information technology, science, human resources, law and even history!

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Our value proposition

“Freedom within boundaries”

Macquarie recruits talented individuals and encourages them to realise their potential in an environment that values

creativity and innovation.

Its enterprising environment offers employees the freedom to make their mark with their team, clients, customers, the

Bank and their industry.

Employees at all levels are rewarded for the opportunities they create, the contributions they make, and the value they add

for clients, customers and shareholders.

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Using the Graduate lifecycle to perpetuate our culture

Goals & Values

Attraction

Develo

pmen

t

& reten

tion

Workforce

management Selecti

on

Building and reinforcing Macquarie’s employment brand on campus through continuous sourcing strategies to ensure the best graduates are attracted to work for the Bank both now and later in their careers

Onboarding and managing hires with robust employment policies,workforce analysis and infrastructure

Providing the right environment, development opportunities and remuneration to encourage maximum performance and retention

Selecting candidates from the applicant pool with the abilities and values using targeted tools to measure behavoural alignment and cultural fit

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A case study…

Ben Huda: Joined Grad Program Feb 2003

Feb 2003 - Jul 2004: EMG Structuring

Help structure new, and manage existing, equity derivative products.

Jul 2004 - Jun 2005: EMG Australia Trading

Trading exotic derivatives, also helped start correlation trading business

Jun 2005 – Present: Macquarie Securities USA, based in New York

Proprietary Trading (trading the banks balance sheet), ffocus on Europe

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Agenda

2. Our corporate culture

3. Using Graduate recruitment to perpetuate culture

1.Macquarie ‘s profile and performance

4. The future challenges

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Future strategy and challengesExpanding the global recruitment footprint

building a brand and sourcing strategy in countries where our brand recognition is lower

rapidly and understanding and tailoring our approach in new markets

developing relationships with universities ,competitors, serviceproviders in varied locations; working within mandated recruitment processes in these locations

overlap in timing of programs - resourcing our recruitment and program delivery

Remaining competitive in AustraliaContinuing to deliver best practice in this market; resisting complacency!

Fine-tuning our brand positioning

Competing effectively in the tightening labour market

Leveraging the the international student population in sourcing for offshore operations

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