John WalkerChairman, Macquarie Securities Korea Ltd.

Contents

22 Global Expansion

11 About Macquarie

33 Korea as a Case Study

What is Macquarie?

A commercial bankA commercial bank

An investment bankAn investment bank

A diversified financial institutionA diversified financial institution

All of the above

About Macquarie

* As at 31 March 2008. Operating income excludes earnings on capital and other corporate items.

Diversified, global financial services organisation

Sydney-headquartered, Australian Stock Exchange-listed (ASX: MQG)

Macquarie Group Limited— Market capitalisation: $A14.5b*; top 20 ASX company; approximately 120,000 shareholders

Macquarie and Macquarie Managed Funds— Market capitalisation: $A69.2b*; top 5 ASX company; over 300,000 shareholders

57% of operating income derived from international markets*

Approximately 13,000 employees in 25 countries*

Successive years of record profits and growth since 1992— Compound annual growth (CAGR) over a decade: Income:27%; NPAT: 29%; EPS: 23%

MQG ratings — F1/A (Fitch)— P1/A2 (Moody’s)— A2/A- (Standard & Poor’s)

Broad strategy

What we do

Full range of financial services in Australia

Broad range of financial services in Asia-Pacific

Focused business in the Americas, Europe, Africa and the Middle East

Australia

Asia-Pacific

Other international markets

Macquarie origins

History

Established in 1969 as Hill Samuel Australia Limited, a wholly-owned subsidiary of UK merchant bank Hill Samuel & Co Ltd

Obtained an Australian banking licence in 1985 as Macquarie Bank Limited

Macquarie Bank Limited publicly listed on the Australian Stock Exchange in 1996

Purchased the Australian assets of Bankers’Trust in 1999

Purchased the Asian cash equities business of ING Securities in July 2004

One of Australia’s top 20 companies listed on the ASX today by market capitalisation (~$A14.5 billion)

Formally established Macquarie Group Limited as a Non-Operating Holding Company in November 2007 to facilitate continued growth

Established a UK bank on 4 February 2008

Name and logo

Macquarie takes its name from Australia's most successful early governor, Governor Lachlan Macquarie (1761 – 1824)

Governor Macquarie was instrumental in the establishment of Australia's first bank and was also responsible for introducing Australia's first coinage, the Holey Dollar

In 1813 Governor Macquarie overcame an acute currency shortage by purchasing Spanish silver dollars, punching out the centres and creating two new coins - the “Holey Dollar” and the “Dump.” This doubled the number of coins in circulation, increased their combined value by 25 per cent and prevented the coins from leaving the colony

Macquarie’s global officesApproximately 13,000 employees in more than 60 office locations in 25 countries *

* As at 31 March 2008 / ^ Staff seconded to joint venturer not included in headcount

Canada Calgary

MontrealToronto

VancouverWinnipeg

BrazilSao Paulo

Australia AdelaideBrisbaneBroadbeachCanberraMelbourneNewcastlePerthSunshine CoastSydney

New ZealandAuckland

ChristchurchWellington

EuropeAmsterdam

DublinFrankfurtGenevaLondon

ManchesterMilan

Moscow^Munich

ParisRome

ViennaZurich

Middle EastAbu Dhabi

Asia BangkokBeijingHong KongHsin-ChuJakartaKuala LumpurLabuanManilaMumbaiNew DelhiSeoulShanghaiSingaporeTaipeiTianjinTokyo

HoustonIrvineJacksonvilleLos AngelesMiamiNew York

USA AtlantaBloomfield HillsBostonCarlsbadChicagoDenver

San DiegoSan FranciscoSan JoseSavannah^SeattleTroy

South AfricaCape Town

Johannesburg

Diversified earnings

* Percentage contribution based on management accounts before unallocated corporate costs, profit share and income tax. Half year to September 2007. Staff numbers current at 31 March 2008

Profit contribution of operating groups*

Equity Markets: 15%Equity derivatives and structured products, equity hedge funds management and stock borrowing and lending. 719 staff

Treasury & Commodities: 10%Agricultural commodities, energy markets, debt markets, foreign exchange, futures broking, metals and energy capital, economic research, emerging markets, gas and electricity trading.611 staff

Real Estate: 4%Real estate investment services, financing, development, funds management, structured finance and advisory, and equity raising.605 staff

Funds Management: 5%Securities funds management and funds management distribution. 241 staff

Macquarie Capital: 60%Corporate finance and advisory, financial products and structuring, institutional cash equities and research, specialised funds management and leasing. 4071 staff

Banking & Securitisation: 2%Investment lending, consumer finance, mortgage origination and servicing and relationship banking services.

Financial Services: 4%Retail financial services and advisory, online retail foreign exchange, retail and wholesale funds management, administrative platforms and product distribution.

3058

sta

ff

39 year history of growth

Years ended 31 March. Data current to 31 March 2008. From 2005 numbers have been reported under Australian equivalents to International Financial Reporting Standards (AIFRS).

Net

Pro

fit A

fter T

ax

$Am

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1969 1975 1981 1987 1993 1999 20051969 1975 1981 1987 1993 1999 2005

Mar 08$A1.80b

Australia

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1,0001,5002,0002,5003,0003,500$Am

0500

1,0001,5002,0002,5003,0003,500

2004 2005 2006 2007 2008

5 year CAGR to 31 Mar 08: 20%

Australia: 2007 included significant income from a number of asset realisaincluding Goodman Group.

Asia - Pacific

5 year CAGR to 31 Mar 08: 70%

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2004 2005 2006 2007 2008

Asia- Pacific: market conditions held up well in 2008, and the region also benefitedfrom the realisation of the investment in Macquarie- IMM.

Europe, Africa, Middle East

5 year CAGR to 31 Mar 08: 50%

2004 2005 2006 2007 20080

500

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Americas: 2007 included income from significant oil and gas in realisation; 2008 impacted by credit disruption and write-downs on investment in listed real estate trusts with US assets.

Europe: 2007 was a strong year for corporate finance activity and included income from a number of asset realisations.

Americas

5 year CAGR to 31 Mar 08: 53%

2004 2005 2006 2007 20080

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Strong growth in all regions

Why We Had to Grow

Big commercial banks and global investment banks all in Australia when we started growth path.

Deregulation of the financial sector spurred competition, prompting Macquarie to be more innovative, offer more products, look for niches

We were too dominant in our home market, so went offshore to expand

MACQUARIE BECOMES GLOBAL LEADER IN INFRASTRUCTURE ASSET MANAGEMENT

MACQUARIE BEGINS GLOBAL EXPANSION INTO EUROPE, US AND ASIA. STILL CONTINUING

REFORMS START OVERHAULS OF AUSTRALIA’S REGULATORY AGENCIES

HILL SAMUEL’S NAME CHANGED TO MACQUARIE BANK

16 FOREIGN BANKS GET BANKING LICENSES

14 NEW FOREIGN EXCHANGE LICENSES GRANTED

HILL SAMUEL AUSTRALIA AUTHORISED AS FOREIGN EXCHANGE DEALER

AUSTRALIAN DOLLAR FLOATED

1990s

1989

1985

1985

1984

1984

1983

1988

Competition Encouraged Initiative, Innovation & Growth

1970 – Hill Samuel Australia, Macquarie Bank’s predecessor, officially begins operations in Sydney with three staff

1978 – First Australian project

1970s

1980 – Introduction of Australia’s first cash management trust1982 – Quantitative Applications Division established1983 – First international office opens in New Zealand1984 – Hill Samuel Australia formally authorised as a foreign exchange dealer.1985 – Macquarie Bank formed and starts trading as a licensed bank.1988 – Launch of Macquarie Property Trust1989 – First European office opens in Munich with three people

1980s

1991 – First US office opens in Denver

1993 – Allan Moss appointed CEO

1994 – Macquarie Bank Ltd opens London branch

1994/95 – Hong Kong office opens, and offices established in China

1996 – Singapore office opens

1996 – Macquarie Bank lists on the Australian Stock Exchange

1999 – Korea business commences, joint venture with KookminBank set up; Office opens in Canada

1990s

2000 – Korea office officially established; Brazil office opens; Joint venture sealed with Industrial Bank of Japan2001 – Frankfurt office opens2002- Vienna office opens2003 – Offices open in Dublin, Labuan, Houston, San Diego and Memphis2004 – Office opens in Geneva.2005 – Offices open in Milan and Rome.2006 – Offices open in Paris and Zurich; Joint venture with Abu Dhabi Commercial Bank established.

2000s

How We Grew – Bottom-Up Structure

Macquarie’s expansion is NOT the result of a grand plan on a whiteboard

It came from people volunteering to start a new businesses abroad

Macquarie’s “bottom-up” structure encourages new business ideas from junior staff as well as senior – e.g., Macquarie Korea Infrastructure Fund

Ideas from the businesses evolve into leading market positions

Buildknowledge

andexpertise

Developa niche

Createfranchise

/brandawareness

Establishleading

market positionin the

wider market

IDEANew market

IDEANew product

IDEA

IDEANew region

We try to leverage our skills into services which add more value

Leverage ideas – expand business continuum

Alignment with Client/Investors

IDEA BROKERAGE ADVICE UNDERWRITING FUNDS PRINCIPAL

Leverage Niches to Expand

Macquarie utilized its infrastructure dominance to leverage its presence in new markets

It now has many different businesses but they all have one thing in common…

…they all focus on areas where they can make a difference.

Having Enough Capital to Grow

Employer contributions are mandatory in Australia, which has created a huge pool of national savings, projected to reach AUD1.6 trillion by 2020

Pension fund assets now make up 75% of total investment fund assets. This provided Macquarie’s with a capital base for its global expansion

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Superannuation assets ($AUD bn) % of GDP

* Projections by Australian Treasury / Source: The Association of Superannuation Funds of Australia

Be a Leader in Your Home Market First

Financial institutions should dominate their niche in their home market before attempting global expansion

Good performance record in difficult emerging markets

ExcellentE-bankingsystems

Hugenational

savings pool

Increasing use of liquidity for offshore

investments

Strong focus on natural markets

such as Asia

Korea’s natural advantages

could deliver niches:

Strong retaildistribution

The Results of Our Approach

Note: Sale of Macquarie-IMM Investment Management and Macquarie ProLogis Management during year to 31 March 2008 reduced AUM by over $A6b. Years ended 31 March. Data current to 31 March 2008.

Over 110 infrastructure assets, over 700 real estate assets globally

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2004 2005 2006 2007 2008

FSG/FMG Wholesale

FSG/FMG Retail

Other Specialist

Real estate

Infrastructure

$A63b

$A97b

$A140b

$A197b

$A232b

Global and Diverse Assets

* Comprises listed and unlisted specialist infrastructure, real estate and other specialist assets under management as at 31 March 2008.

Assets Under Management by Region Assets Under Management by Sector

Americas22%

Asia Pacific10%

Europe, Africa &Middle East48%

Australia20%

InvestmentFunds

5%

Airports12%

Roads21%

Other16%

RetailReal Estate

5%CommercialReal Estate6%

IndustrialReal Estate1%

Energy &Utilities 20%

Tourism/Leisure &

ResidentialReal Estate

2%

Communi-cationsInfrastructure12%

Provider of essential community services around the world

As at 30 September 2007

+4.3 million standard container units handled per annumPorts

+38 million trolleys rented per annumAirport trolleys

+5.9 million passengers per annumFerries

1.5 million vehicles inspected per annumVehicle inspection

+290 million passengers per annumBuses

45 million ‘yellow pages’ distributedDirectories

+9,400 beds/+7,900 unitsAged care/retirement villages

+62,800 across the assetsEmployees

+2.7 million passengers per annumRail

+90 million people are reached by Macquarie’s television, telephone and radio infrastructure, and cable and newspaper services

Communications

1.2 million households

+5.6 million households

+6.9 million households

+1.9 million cars per day

+75 million passengers per annum

Water services

Electricity distribution

Gas distribution

Toll roads

Airports

The Drivers of Macquarie’s Global Expansion

Competition Breeds Desperation

Desperation Breeds Innovation

Innovation Breeds Success

Success Becomes a Habit

Our Growth in Korea

SMFA established as JV between Shinhanand Macquarie

Macquarie Korea Infrastructure Fund established, capitalized with KRW 247 billion

WooriMacquarie Equity Derivatives Business Cooperation commences trading

Macquarie Real Estate lists first REIT on Korea Exchange

Macquarie buys ING’scash equities business to set up Macquarie Securities Limited Seoul Branch

Macquarie Korea Opportunities Fund established as high-yield, low-risk infrastructure fund

Macquarie Korea Infrastructure Fund lists on Seoul and London stock exchanges

WooriMacquarie Business Cooperation established to trade in commodity derivatives

MSKL converts from a branch to a locally incorporated subsidiary

13 businesses with nearly 400 staff, total value of the asset into which we have invested in Korea A$20 billion as of March 2008)

Macquarie IMM sold to Goldman Sachs

Received OTC license in March 2007

Macquarie Electronics starts business in Korea

Seoul office opens with fivebusinesses (SMFA, Macquarie Capital Korea, Macquarie Korea Co., Ltd. and Macquarie-IMM ) and five staff

Macquarie Capital Korea and Macquarie-IMM Investment established

2000 2001 2002 2003 2004 2005 2006 2007-2008

Staff Growth in Korea

More than 90% of employees are Korean

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1998 2000 2001 2002 2003 2004 2005 2006 20082007 2009(e)

Our Korea Strategy Mirrors Our Global Strategy

Encourage initiative and innovation

Our bottom-up organisational culture

Fully Integrated Investment Bank

Leverage niches to expand

We Are Innovators in Korea

In Korea, Macquarie has pioneered ;

investment banking JV companies

infrastructure funds

non-recourse financing

consortium investments

equity-linked warrants

commodity futures

Provider of essential community services

1,300 people employed at SK E&S including subsidiaries (MKOF)

1,855 employees employed at Hanjin terminals in the US, Japan and Taiwan (MKOF)

MKIF has created nearly 44,000 jobs with its construction assets

Pumping gas to 3.2 million households through SK E&S

Generating 606,414 MWh power for 50,000 households at West Sea Power

189,289 Kton of water treated at West Sea Water

324,000 people travel on Macquarie Korea’s asset roads every day

3.8 million TEU and 2.2 million of boxes handled by 6 Hanjin Terminals

2 million Cable TV subscribers and 440,175 of ISP subscribers at C&M

688,860 Cable TV subscribers and 111,177 of ISP subscribers at TBC

Macquarie investments in Korea

TOLLROADS UTILITIES PROPERTYMEDIA

Seoul – Chuncheon Expressway

Megabox (Ulsan)

SK E&S

Daegu 4th Beltway East

New Daegu – Busan Expressway

Baekyang Tunnel

Soojungsan Tunnel

Machang Bridge

Megabox (Gwangju)

Megabox (Jeonju)

Megabox (Suwon Youngtong2)

Megabox (Seomyun)

Megabox (Haeundae

Megabox (Suwon)

Megabox (Mokdong)

Megabox (GMC1)

Megabox (Shinchon)

C&M

Busan New Port

Woomyunsan Tunnel

Megabox (Daegu)

Magabox (COEX)

Gwangju 2nd Beltway, Section 1Gwangju 2nd Beltway, Section 3

Cheonan – Nonsan Expressway

Incheon International Expressway

Seoul Subway Line 9, Section 1

Incheon Grand Bridge

Renault Samsung BuildingING Centre

Kukdong Building

Hanjin Pacific Corporation

Seosuwon – Osan – Pyungtaek ExpresswayYongin Seoul Expressway

West Sea WaterWest Sea Power

Seattle, WA(Hanjin)

Oakland, CA(Hanjin)Long Beach, CA

(Hanjin)

Tokyo(Hanjin)

Osaka(Hanjin)

North Miaoli(TBC)

South Miaoli(TBC)

SouthTaoyuan(TBC)

HsinchuCounty(TBC)

Taichung(TBC)

Kaoshiung(Hanjin)

Some Final Thoughts…

Investment Banking is an “Inspiration” Industry

People are your most important resource

Innovation is fundamental

Without clients and reputation you have no business

“Intellectual agility” is as important as “ability” in a very competitive market

Understanding the big picture is very important