Amp Limited · ASX:AMP
Amp — UBS 4th Annual Australian Financial Services Conference (June 2005)
25 slides from Amp's conference presentation, Jun 22, 2005
Slide 1: ASX Announcement: Open Briefing and presentation by AMP Financial Services
ASX Announcement 22 June 2005 Manager Company Announcements Office Australian Stock Exchange Level 4, 20 Bridge Street Sydney NSW 2000 Announcement No: 27/05 Manager Market Information Services Section New Zealand Stock Exchange Level 9, ASB Tower, 2 Hunter Street Wellington New Zealand Open Briefin
Slide 2: Open Briefing: AMP on AFS Update
Attention ASX Company Announcements Platform Lodgement of Open Briefing® » : » | open briefing: corporatefile.com.au AMP Limited Level 20 33 Alfred Street Sydney, NSW 2000 Date of lodgement: 22-June-2005 Title: Open Briefing”. AMP. On AFS Update Record of interview: This Open Briefing reflects a dis
Slide 3: Open Briefing (continued): net cash flows in the sector
continued to evolve over time; we’ve successfully faced many challenges and the model continues to remain relevant and contemporary today. Our focus continues to be driving the business hard, playing to our strengths, and building on these competitive strengths to grow strongly and profitably. Pll a
Slide 4: Open Briefing: business strengths and growth opportunities
we corporatefile.com.au Where specifically do you see the business strengths and growth opportunities you mentioned earlier? MD AFS Craig Dunn We've got the country’s largest and best qualified planning force, our average planner age is only 46 years and our planner tenure is well above the competit
Slide 5: Open Briefing: super choice and DIY funds
essential for our customers. That’s why our latest marketing campaign focuses on what we believe will continue to be the main triggers for people to revisit their super, that being key lifestyle events such as changing employment and preparing for retirement. It’s key events like these that usually
Slide 6: Open Briefing: margins and pricing
sector are not the same as in the retail sector, or even within each segment of the retail sector. AFS has a sophisticated and segmented approach to pricing driven by our desire to maintain a competitive position while maintaining our overall value proposition, rather than any desire to be the lowes
Slide 7: June 2005
22 June 2005
Slide 8: AFS competitive position and perspectives
* AMP Financial Services’ (AFS) competitive position » Perspectives on super choice, margins and pricing, DIY * Review of two significant growth opportunities: » AMP Financial Planning » AMP Corporate Superannuation
Slide 9: AFS competitive strengths — sustainable, focused on growth
AFS competitive strengths — sustainable, focused on growth » AFS has a sustainable competitive advantage, driven by: » iconic, resilient brand » unmatched strength in distribution » scale and focus in product manufacturing
Slide 10: AFS strategy — simple, focused, disciplined
AFS strategy — simple, focused, disciplined hele ae ral oe Beall G6 to be the partner of choice for financial planners and lead the market space for quality advice to deliver market competitive products at the lowest unit cost
Slide 11: AFS net retail cash flows, ranking and industry share
AFS net retail cash flows, ranking and industry share AMP rolling 12 month net retail cash flows (excluding CMTs), ranking and AMP net cash flows as % of industry total AMP net cash flows Agm 3.500 5 3,000 2,500 2,000 1,500 1,000 + 500 4 0: St Mar-01 Sep-01 Mar-02 Sep-02 Mar-03 Sep-03 Mar-04 Sep-04
Slide 12: AFS holds leading market positions
AFS holds leading market positions March 2005 March 2004 Market share- Australia Total market size ASb Market position (rank) Market share % Total market size A$b Market position (rank) Market share % Funds under management $billion Super including rollovers Retirement Income Total Super and Retirem
Slide 13: Organic growth across major market segments continues to recover
Organic growth across major market segments continues to recover Organic growth* of total market segments (over rolling 12 months March 1996 to March 2005) All Ords Index zg 3 2 Oo ce ; 2 oO ‘Mar: Sep- Sep- Mar Sep-- Mar- Sep- Mar-- Sep- - Mar Sep. Mar = Sep- . Mar 96 96 7 98 98: 99 99 00. 00. 02 02
Slide 14: AFS leads market in super sector
AFS leads market in super sector Total industry net cash flows (rolling 12 months) March 2000 versus March 2005 — Mar-00 [i Mar-05 7,040 (490 All Retail Super (incl Retirement Unit Trust {ex CMTs) rollover) Income (ex CMTs) Source: Plan for Life March 2005
Slide 15: Perspective — choice of super fund
Perspective — choice of super fund « AMP is a strong supporter of choice and is well positioned to benefit from the change » 1 July start date not a deadline for consumers » expect choice to lead to gradual changes to the industry over the medium term > believe life events, eg change in employment o
Slide 16: Perspective — margins and pricing
Perspective — margins and pricing « Drivers of pricing are different for each superannuation segment « AFS approach to pricing sophisticated and segmented = AFS approach to repricing: » conduct infrequently » apply strategically (ie, apply to particular products and market segments, maintain value p
Slide 17: Perspective — DIY
Perspective — DIY Drivers * Quick growth off a low base driven by both cyclical and structural factors (ie, changes in equity markets, tax benefits) » number of new funds registered has dropped in the past year” » recent US reports suggest shift away from DIY * Future growth not as certain, with inc
Slide 18: Review of two significant growth opportunities
Review of two significant growth opportunities # AMP Financial Planning = AMP Corporate Superannuation
Slide 19: Comparative advantage — distribution scale, quality and tenure
Comparative advantage — distribution scale, quality and tenure Number of Australian financial planners Planner age profile June 2004 Average age 46. Average of competitors ‘surveyed 0% 20% 40% 60%. 80% 400% O «35 y.0. BW >*35 and <45 yo. RB >=45 and <50 y.0. m e280 and <55y.0 M@ >=55 and <60 yo. O >
Slide 20: Strengthening key comparative advantage — distribution network
Strengthening key comparative advantage — distribution network 12 months into rejuvenation and restructuring program in AMP Financial Planning (eg, field management restructure, planner accreditation, retirement specialists, advice packages) Program designed to increase planner productivity by: » im
Slide 21: Review of two significant growth opportunities
Review of two significant growth opportunities =» AMP Financial Planning = AMP Corporate Superannuation
Slide 22: Strong growth expected in superannuation, particularly employer-sponsored master trusts
Strong growth expected in superannuation, particularly from employer-sponsored master trusts Market growth contemporary super * Market share FUM 41,600,000 CAGR 2004-2014 June 2004 4,400,000 A$559 billion 41,200,000 1,000,000 800,000 $00,000 400,000 (Public Sector Funds 200,000 | |) ! (0 Personal Su
Slide 23: Comparative advantage of AMP corporate super from client perspective
Comparative advantage of AMP corporate super from client perspective Leading market position and strong brand Strong range of features and benefits, according to independent review Scale position of $25 billion* across one super platform for corporate and retail super » allowing investment in produc
Slide 24: 'Downstream' value of AMP corporate super
‘Downstream’ value of AMP corporate super Personal Super Retail Risk Products Banking Products Allocated Pension ==> Beneficiary’s Allocated Pension
Slide 25: AMP's core markets continue to exhibit robust growth
AMP's core markets continue to exhibit robust growth Competitive strengths strongly position AFS to leverage these market opportunities and meet future challenges These strengths provide AFS sustainable competitive advantage: » iconic, resilient brand » unmatched strength in distribution » scale and
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