Slide 1: 2022 Full Year Results
2022 FULL YEAR RESULTS AMPS& THURSDAY 16 FEBRUARY FY22 Alexis George Chief Executive Officer Peter Fredricson Chief Financial Officer
Slide 2: Agenda
Agenda 12 3 4& FY 22 Financial Progress on Summary overview results strategic objectives
Slide 3: FY22 overview
FY 22 overview
Slide 4: Overview of AMP
Overview of AMP Simplified, growth-oriented portfolio BUSINESS UNITS AMP BANK PLATFORMS A standalone wealth management, financial advice and general insurance distribution business. A competitive, digital- A leading provider of Provides professional Offers super and pension focused challenger bank s
Slide 5: FY22 NPAT (underlying) of A$184m reflects expected impact of strategic repricing
FY 22 NPAT (underlying) of A$184m reflects expected impact of strategic repricing in wealth management businesses, investment market volatility, and mortgage margin compression in a competitive banking market. Capital surplus remained strong; supported by asset sales to simplify portfolio. Capital m
Slide 6: FY22 commitments: clear roadmap for FY23
of FY 22 commitments: Clear roadmap for : to sell to enable businesses, enabling portfolio simplification focus on banking and wealth management operations in highly competitive and dynamic market following conditions; year-on-year customer growth ~16% simplification of business continuing to trend
Slide 7: Customer, people and community highlights
Paid to Released a Helped around with their customers in Australia to help them live their clients, making connecting with their banking needs and provided retirement well. investments easier. Extensive engagement with over employees Invested in Formed to develop new purpose – helping people create
Slide 8: FY22 financial results
FY 22 financial results
Slide 9: NPAT (underlying) by business unit
reflects first full year of strategic AMP Bank 103 57 46 153 (32.7) pricing changes in the business units; margins delivered in line with guidance. Platforms 66 30 36 123 (46.3) mortgage book grew above system and Mastertrust 55 28 27 111 (50.5) experienced improvement in NIM during 2H 22. Advice (6
Slide 10: Residual impact from 2H21 pricing changes
1 2 1. Residual impact from 2H 21 pricing changes to AUM-based revenue. 2. Includes Platforms, Master Trust and NZWM.
Slide 11: Items reported below NPAT
Client remediation and related costs (25) (3) (22) (78) 67.9 Transformation cost out (61) (35) (26) (133) 54.1 Separation costs (90) (38) (52) (75) (20.0) Impairments1 (68) (68) - (312) 78.2 Other items2 400 (35) 435 11 n/a Amortisation of intangible assets (4) (2) (2) (21) 81.0 Total items reported
Slide 12: AMP Bank results
of A$103m (FY 21: A$153m), reflects benefit of one-off loan Net interest income (A$m) 382 206 176 399 (4.3) provision release in FY 21 and a reduction in net interest income, largely due to NIM compression in 1H 22. Fee and other income (A$m) 15 7 8 14 7.1 2H 22 improved 12bps to 1.44%. FY 22 NIM of
Slide 13: AMP Bank 1H vs 2H net interest margin
AMP Bank 1H 22 vs 2H 22 net interest margin (%) 0.29 144 1.32 (0.12) (0.03) (0.03) (0.02) 1H 22 Variable rate loan Fixed rate loan margin Asset mix and other Deposit margin 2H 22 margin Section 2 | AMP LIMITED - FY 2022 RESULTS 13
Slide 14: AMP Bank mortgage book growth and credit quality
AMP Bank’s residential mortgage book grew at 2.7x The Bank continues to focus on maintaining book Strong credit quality maintained; 90+ days arrears system in 2H 22 and 1.5x system (1.8x including Nano quality with 67% of mortgages being owner-occupied. decreased to 0.30% in FY 22, comparing favoura
Slide 15: Platforms results
of A$66m (FY 21: A$123m) reflects competitive repricing initiatives and strategic investment to position the business for future growth; lower investment AUM based revenue (A$m) 319 154 165 368 (13.3) income as a result of volatile markets impacting the North guarantee. increased 7.5% to A$157m (FY
Slide 16: Platforms net cashflows and flagship North growth
of A$936m in FY 22 were up from A$83m in FY 21. include A$1.6b of pension payments up from A$1.5b in FY 21. in FY 22 of A$1.7b were up 31% on FY 21 reflecting traction on strategic priority. of A$5.7b were up A$2.4b compared to FY 21 driven by the closure of Summit and Generations products in Q4 22
Slide 17: Master Trust results
of A$55m (FY 21: A$111m) due to pricing changes implemented in October 2021 as part of simplification activities and lower market returns partly offset by AUM based revenue (A$m) 383 185 198 526 (27.2) lower costs. of A$3.9b improved from outflows of A$5.2b in FY 21. FY 22 includes A$0.4b of pension
Slide 18: Advice results
loss more than halved to A$68m, reflecting strong progress on Advice revenue (A$m) 56 26 30 58 (3.4) transformation to a sustainable, standalone business. of A$56m was supported by higher licensee fees from new Variable costs (A$m) (18) (9) (9) (83) 78.3 commercial terms, growth in equity investment
Slide 19: New Zealand Wealth Management results
reduced 17.9% to A$32m primarily due to lower average AUM from Total revenue (A$m) 125 61 64 150 (16.7) weaker global investment markets in FY 22; average AUM decreased 14.7% to Controllable costs (A$m) (35) (17) (18) (36) 2.8 A$10.8b. NPAT (underlying) (A$m)1 32 15 17 39 (17.9) Strong cost control
Slide 20: AMP Capital continuing operations results
was A$92m down 18.6% from A$113m in FY 21. AUM based management fees (A$m) 253 103 150 414 (38.9) — increased 10.8% to A$41m (FY 21: A$37m) reflecting higher returns from joint venture and sponsor capital Non-AUM based management fees (A$m) 86 35 51 91 (5.5) investments. — of A$51m down 32.9% (FY 21
Slide 21: Group Office results
Group office costs (post-tax) (67) (36) (31) (66) (1.5) Interest expense on corporate debt (post-tax) (48) (30) (18) (51) 5.9 Investment income from Group office investible capital 26 13 13 19 36.8 Other investment income 47 19 28 60 (21.7) Investment income total (post-tax) 73 32 41 79 (7.6) Group
Slide 22: China strategic partnerships: CLPC and CLAMP
\ AUM remained steady through 2022 despite challenging markets. Strong growth in CLPC core business lines of enterprise annuity and occupational pension achieving AUM growth rates of 14% and 20% respectively. AMP has recognised a cash dividend of ~A$14.5m from CLPC in 2022. Reforms in the Pillar 3 m
Slide 23: Group controllable costs
Disciplined cost management has reduced costs by A$54m from FY 21 through the simplification of operational structure. Cost increases related to CPI and investment in businesses to support growth. AMP expects to report FY 23 controllable cost flat on FY 22, cushioning impact of inflationary cost pre
Slide 24: Capital position as at 31 December 2022
AMP Limited’s capital position as at 31 December 2022 is A$2,988m comprising: Minimum regulatory requirements: • AMP Bank A$1,018m • Superannuation business A$304m • AMP Capital A$44m. Board buffer of A$699m covers potential impact of operational, market or regulatory change and product- related ris
Slide 25: Strong capital position with A$923m surplus capital
— Strong capital position with A$923m surplus capital at 31 December 2022. — Successful completion of Infrastructure Debt sale added A$390m to surplus. — Sale of AMP’s stake in Resolution Life Australasia (RLA) to Resolution Life completed in June 2022, realising A$509m. — Net business activity refl
Slide 26: Expected movements in surplus capital
— At 31 December 2022, total eligible capital above target requirements was A$923m. — Key movements expected in the Group’s surplus capital position over the next 12 months, in addition to the impacts from trade sales, include: — Uplift from announced sales, net of total NTA attributable to the sold
Slide 27: FY23 outlook
– Targeting above system residential loan growth in FY 23. – FY 23 NIM expected to be in-line with FY 22. – FY 23 AUM based revenue margins expected to be broadly in line with FY 22. – Improvement in net cashflows expected to continue in FY 23. – Further NPAT improvements expected from reductions in
Slide 28: Progress on strategic objectives
Progress on strategic priorities 3
Slide 29: Operating environment and business unit considerations
- Maintain focus on supporting customers by offering competitive mortgage and deposit rates and supporting customers experiencing financial hardship. - Focus on strong credit quality of loan book; key opportunity for bank deposits. - Broader inflationary pressures across the economy have the potenti
Slide 30: Path to new AMP
Path to new AMP FY 23-25 Strategic pillars - Continue to invest to grow AMP Bank - Grow the North platform, continuing to build out nl | REPOSITION independent financial adviser relationships — Continue to drive transformation of Advice - Finalise sale of AMP Capital businesses - Continue to right-s
Slide 31: FY23 priorities
FY 23 priorities Driving growth in key areas and delivering returns to shareholders —@ —© Return capital to Drive operational efficiency shareholders —@ Grow IFA flows Support new growth Build on culture and in Platforms opportunities brand Section 3| AMP LIMITED - FY 2022 RESULTS 31
Slide 32: Progress on capital return and cost management
Announced a capital return of A$1.1b supported by period of Disciplined cost management has reduced costs by A$54m from strategic asset sales FY 21 through the simplification of organisational structures, infrastructure and technology Delivered A$267m of a targeted A$350m on-market share buyback wit
Slide 33: Progress in AMP Bank and Platforms
Loan growth of A$2.0b (organic and inorganic), while Launched MyNorth Lifetime, a unique-to-market retirement solution maintaining strong credit quality Expanded range of managed portfolios, with AUM surpassing A$7.7b Launched digital mortgage, enabling unconditional loan Launched new client app des
Slide 34: Digital mortgage, MyNorth and culture progress
Recommitted to building a purpose-led, high performance Launched direct-to-customer digital mortgage product, and organisation, launching a new purpose and values innovative retirement solution on MyNorth platform Introduced a new performance system, taking a holistic approach, Expanded data analyti
Slide 35: Summary
L Summary
Slide 36: Summary
Agreed asset sales to simplify and refocus AMP’s portfolio on wealth management and banking. Announced returns to shareholders – capital and dividends. Launched market-leading retirement solution and digital mortgage. Embedded new purpose and values, as we transform AMP’s culture. Challenging enviro
Slide 37: Appendix
Appendix
Slide 38: Australian Wealth Management results
AUM based revenue (A$m)1 719 339 380 920 (21.8) Advice revenue (A$m) 56 26 30 58 (3.4) Other revenue and investment income (A$m) 17 12 5 50 (66.0) Variable costs (A$m) (199) (85) (114) (315) 36.8 Controllable costs (A$m) (525) (274) (251) (586) 10.4 NPAT (underlying) (A$m)2 50 14 36 89 (43.8) Averag
Slide 39: Capital resources and surplus capital
Total capital resources 5,155 5,910 5,305 (2.8) Total corporate subordinated debt (525) (603) (603) 12.9 Total corporate senior debt (553) (828) (828) 33.2 Shareholder equity 4,077 4,479 3,874 5.2 Total eligible capital resources 2,988 3,459 2,512 18.9 Surplus capital above target requirements 923 1
Slide 40: AMP Bank peer comparison
1. Based on current disclosures of regional bank peers. The ratio represents the relevant latest financial year for each peer which may not be aligned to AMP’s financial year.
Slide 41: AMP Bank peer comparison and arrears data
1. Based on current disclosure of regional bank peers. The ratio represents the relevant latest financial year for each peer which may not be aligned to AMP’s financial year. 2. Based on Perpetual RMRT (Risk Manager’s roundtable) data, December 2022.
Slide 42: AMP Bank: maintaining high quality loan book
AMP Bank Maintaining high quality loan book while continuing growth % of portfolio with a low Probability of Default (PD) has increased ona AMP Bank’s prudent risk appetite reflected in the move away from higher quarterly basis since 1H 21. LVR (scheduled balance on origination value) since FY 20 @0
Slide 43: Footnotes and sources
1. Plan for Life, September 2022. 2. EriksensGlobal MasterTrust Survey, September 2022. 3. Default KiwiSaver balance until 10 December 2021 was A$645m
Slide 44: Important notice and disclaimer
This presentation has been prepared by AMP Limited (ABN 49 079 354 519) (“AMP"). It is a presentation of general background information about AMP’s activities current at the date of this presentation, which may be subject to change. The information is in a summary form and does not purport to be com
Slide 45: Non-IFRS financial information notice
Investors should be aware that certain financial measures included in this The securities mentioned herein have not been, and will not be, registered under the presentation are ‘non-IFRS financial information’ under ASIC Regulatory Guide 230: U.S. Securities Act, and may not be offered or sold in th
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