Slide 1: Investor Presentation
Investor Presentation Craig Meller, Chief Executive Officer March 2018
Slide 2: AMP – helping people own tomorrow
AMP – helping people own tomorrow Notes Fund Market Overview Retail – Marketer, Strategic Insight (Plan For Life), September 2017. Planner Numbers, Money Management Top 100 Dealer Groups, 2017. All data relates to FY17. 2 |
Slide 3: About AMP
About AMP AMP is the leading wealth management company in Australia and New Zealand Key facts – Largest financial advice network in Australia and New Zealand – 3,277 aligned and employed financial advisers and planners – Around 4 million retail customers – More than A$257 billion in assets under man
Slide 4: Section 1 Financial overview
Section 1 Financial overview
Slide 5: Executive summary
Executive summary Business performance – FY17 underlying profit of A$1,040m (FY16: A$486m) and net profit of A$848m (FY16: -A$344m) – Business recovery reflects stabilisation of wealth protection business and solid broader performance: – Growth momentum in AMP Capital and AMP Bank – Resilient perfor
Slide 6: FY17 profit summary
FY17 profit summary A$m FY 17 FY 16 % Australian wealth management 391 401 (2.5) AMP Capital¹ 156 144 8.3 AMP Bank 140 120 16.7 Australian wealth protection 110 (415) n/a New Zealand financial services 125 126 (0.8) Australian mature 150 151 (0.7) BU operating earnings 1,072 527 103.4 Group Office c
Slide 7: Delivering on strategy in 2017
Delivering on strategy in 2017 2017 objective Delivered in 2017 3% controllable cost reduction (ex AMP Capital) – Group controllable costs ex AMP Capital reduced 3% in FY 17 Grow new sources of revenue in Australian – Other revenue grew 10% to A$108m wealth management via Advice and SMSF – Invested
Slide 8: AMP – a balanced, diversified business
AMP – a balanced, diversified business Contribution of business units to FY 17 operating earnings Risk insurance AMP Bank 10% 13% Mature 14% AUM-driven businesses represented 51% of total FY 17 New Zealand Wealth Mgt BU operating earnings 12% 36% Asset Mgt 15% 8 |
Slide 9: Australian superannuation & pension market (A$3.3 trillion)
Australian superannuation & pension market (A$3.3 trillion)1 Projected superannuation assets (2014 – 2035) – Australia is the 4th largest global pension market2 with US$1.6 trillion in assets – Australian wealth management sector remains highly attractive with the size of the superannuation market p
Slide 10: AMP – Ranked first or second in key market segments
AMP – Ranked first or second in key market segments Superannuation - Accumulation1 Superannuation - Pensions1 Retail life insurance1 AMP AMP Other 18% 16% 25% AMP 25% Other Other 36% 38% NAB NAB 12% 14% ANZ 7% NAB WBC 18% WBC CBA 12% 19% 10% CBA TAL 13% ANZ 12% 7% WBC ANZ 8% 10% Notes 1. Strategic I
Slide 11: Australian financial planners
Australian financial planners1 – Of the Top 100 Dealer 2017 2016 Groups, AMP has the largest overall planner footprint representing 19% AMP of the total market AMP 19% 21% – Ongoing planner Other consolidation across the 39% Other market expected to continue; 41% driven by changing regulatory NAB NA
Slide 12: AMP's advice network
AMP’s advice network – 99% retention of core Mortgage AUM per As at December 2017 Target market Advisers Total AUM ($b) licensee adviser practices consultants1 adviser ($m) – 2.9% decline in core licensee AMP Advice Goals-based 221 24 10 44 advisers from 1H 17; largely due to exits relating to chang
Slide 13: AMP's growth businesses
AMP’s growth businesses AMP Australian Wealth Management AMP Capital AMP Bank 13 |
Slide 14: AMP's value businesses
AMP’s value businesses Australian Wealth Protection Australian Mature New Zealand financial services (Life Insurance) 14 |
Slide 15: Section 2 Financial overview
Section 2 Financial overview
Slide 16: Financial overview – disciplined cost management
Financial overview – disciplined cost management Sustained focus on tight cost management; 10 per cent nominal reduction in operating costs – Operating costs have reduced by 10% A$m over the past five years, recycling most 983 984 981 967 949 of these savings into project investments which have incr
Slide 17: Financial overview – capital position
Financial overview – capital position Maintaining strong capital position – Strongly capitalised with eligible capital above A$m MRR of A$2.3b 1,040 – A$1bn capital released from reinsurance over last 18 months, utilised for: 548 – A$200m share buyback 145 (118) (75) – A$120m of strategic M&A for AM
Slide 18: Financial overview – Level 3 Eligible Capital above MRR
Financial overview – Level 3 Eligible Capital above MRR 18 |
Slide 19: Financial overview – dividend
Financial overview – dividend Returning profits to shareholders - gross dividends up 34% over five years Final 2017 dividend of 14.5 cents Dividends (cents per share)* a share, franked to 90% 34% growth in dividends – Full year dividend of 29 cents a share, 3.6% up year on year, within target 70%-90
Slide 20: Financial overview – Underlying EPS and RoE
Financial overview – Underlying EPS and RoE 20 |
Slide 21: Section 3 Strategy
Section 3 Strategy
Slide 22: AMP strategy
AMP strategy Helping people own tomorrow ~~~ Goals-based advice Wealth Protection New Zealand Global 0/5 & Advice : Global Partnerships Leading market ure ‘AMP Bank | Australian Wealth Management | in Wealth Management AMP Capital Global inv. Memt. — International position with Strong position in ~
Slide 23: Delivering on strategy – key initiatives
Delivering on strategy – key initiatives Strategic Tilt investment to higher Customer-centred Expand internationally Manage costs across objectives growth businesses transformation of core the group Australian businesses Portfolio – Manage for value and – Invest to grow – Leverage strengths to drive
Slide 24: Driving new economics in wealth management
Driving new economics in wealth management Targeting 5% revenue growth through the cycle from 2018 in normal markets Growth as % of average AUM Investment markets +8% Customer fees -1% Margin compression -4% Targeting growth in other revenue from Advice and SMSF Net cashflow +2% equivalent to 2% AUM
Slide 25: Delivering on strategy – Goals-based advice
Delivering on strategy – Goals-based advice – Highly differentiated goals-based advice experience – Places customer in control – Blends interactive technology and human coaching – Tangibly demonstrates value of advice 25 |
Slide 26: Delivering on strategy – Goals-based advice
Delivering on strategy – Goals-based advice – Unique and elegant client experience – Real time probability-based modelling demonstrates goal achievability – Material improvement in SOA production time, reduces cost to serve – Compliance and record keeping by design – 30 AMP Advice locations; over 20
Slide 27: Delivering on strategy – Goals-based advice
Delivering on strategy – Goals-based advice Salesforce solution – Integration with Goals 360 and selected financial planning tools to support all aligned practices – Leading edge CRM capability – Full practice management automation significantly improves practice efficiency – Integrated to AMP’s sys
Slide 28: Driving revenue growth in wealth management – Advice
Driving revenue growth in wealth management – Advice Delivering advice margin to wealth management and improving productivity Client register purchases Equity investment in advice practices Strategy Buy and retain client registers within AMP Strategy Strategic equity investments (typically 20-49%) i
Slide 29: AMP Capital – international growth
AMP Capital – international growth Global Partnerships China Life AMP Asset Management (CLAMP)¹ AUM grew 59% in local currency terms to RMB 183.3b (A$36.0b) Launched 25 new products year-to-date including separately managed accounts, diversified, equity and fixed income funds Fastest growing n
Slide 30: Appendix
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Slide 31: AMP Group Leadership Team
AMP Group Leadership Team 31 |
Slide 32: Our history
Our history AMP and the National Mutual Life Association (which became AXA) were founded on similar principles, with financial advice at the heart of both businesses. While the two companies began their operations independently, they joined forces in 2011 The Australian Mutual The National Mutual Li
Slide 33: Sponsored ADR Program
Sponsored ADR Program AMP Limited maintains a sponsored Level 1 ADR program in the US The ADRs trade on the over-the-counter market in the US (OTC Markets) ADR program details are as follows: Ticker symbol: AMLYY CUSIP: 0017EP202 Ratio: 1 ADR: 4 Ordinary Shares ADR depositary: Deutsche Bank Share pr
Slide 34: Important disclaimer
Important disclaimer Forward-looking statements in this presentation are based on AMP’s current views and assumptions and involve known and unknown risks and uncertainties, many of which are beyond AMP’s control and could cause actual results, performance or events to differ materially from those ex