Amp Limited · ASX:AMP
Amp — Non-Deal Roadshow (September 2010)
27 slides from Amp's roadshow presentation, Sep 21, 2010
Slide 1: ASX Announcement: Investor Roadshow Materials
ASX Announcement 21 September 2010 Manager Manager For personal use only Company Announcements Office Market Information Services Section Australian Securities Exchange New Zealand Stock Exchange Level 4, 20 Bridge Street Level 2, NZX Centre, 11 Cable Street Sydney NSW 2000 Wellington New Zealand An
Slide 2: Investor discussion pack: AMP today
For personal use only Investor discussion pack September 2010 AMP today 2 1
Slide 3: AMP today
AMP today For personal use only AMP is a 160-year-old wealth management company operating in Australia and New Zealand, with selected investment management activities in Asia One of the largest superannuation providers in the Australian market A leading investment manager in the region, with $
Slide 4: AMP's structure and competitive advantages
AMP’s structure For personal use only AMP AMP Financial Services AMP Capital Investors An Australian and New Zealand asset manager, with a growing footprint in Asia, investing across various asset classes. AUM Contemporary Wealth Management sourced from internal and external clients, Unit-linked ret
Slide 5: Business line contribution to 1H earnings
Business line contribution to 1H 10 earnings For personal use only In-force annual premium A$120m and AUM A$5bn AUM A$17.6bn In-force annual premium A$616m AUM A$95bn (externally and internally sourced) AFS NZ AFS A$32m (9%) AFS Mature Contemporary A$68m (18%) Wealth Protection A$73m (20%) AFS Conte
Slide 6: Total AMP assets under management
Total AMP assets under management For personal use only AMPCI managed (41%) 50 Multi-manager (FDF) (29%) CWM Externally managed (27%) AMP Banking (3%) 37 AMPCI external AMPCI managed (94%) Multi-manager (FDF) (6%) 17 Mature AMPCI managed (100%) 5 NZ AMPCI managed (75%) Externally managed (25%) 2 Gro
Slide 7: Executive summary and key performance measures
Executive summary For personal use only Delivered solid half-year result in ongoing volatile markets Disciplined cost control enabled continued investment in growth initiatives and regulatory change program Prudent capital and balance sheet management delivered stable investment income on shar
Slide 8: Overview – 1H profit summary
Overview – 1H 10 profit summary A$m 1H 10 1H 09 1H/1H For personal use only % change AFS Contemporary Wealth Management 150 129 +16% AFS Contemporary Wealth Protection 73 83 -12% AFS Mature 68 72 -6% AFS New Zealand1 32 23 +39% AMP Capital Investors 44 43 +2% BU operating earnings 367 350 +5% Group
Slide 9: Balance sheet strength
Balance sheet strength For personal use only Balance sheet metric 30 June 2010 31 December 2009 Capital surplus above MRR Group A$1,413m A$1,242m Life Statutory Funds A$1,039m A$1,125m Group cash A$759m A$622m Undrawn bank facilities A$700m A$700m S&P gearing 15% 13% Interest cover ratio (underl
Slide 10: Compares well to global insurance stocks ROEs; dividends and yield
Compares well to global insurance stocks ROEs Source: Goldman Sachs Research For personal use only % 35 30 AMP 25 20 2009-10 Ping An ROE Zurich Financial 15 Prudential ING China Life Allianz Travelers Standard Life AXA 10 Munich Re MetLife Swiss Re 5 0 % 0 5 10 15 20 25 30 35 2010-11 estimated ROE 1
Slide 11: AMP's forward PE ratio; Market environment
AMP’s forward PE ratio For personal use only 23.0 21.0 19.0 17.0 15.0 13.0 11.0 9.0 Jun-05 Dec-05 Jun-06 Dec-06 Jun-07 Dec-07 Jun-08 Dec-08 Jun-09 Dec-09 Jun-10 AMP PE ASX 200 PE 19 Market environment 20 10
Slide 12: Australian superannuation and pension market
Australian superannuation & pension market (A$1.3 trillion) For personal use only Government Asia 6% Public sector Mainly distributed 14% by accountants, solicitors and financial planners Small managed super funds (SMSFs) 32% Retail funds 28% Mainly distributed by financial planners Industry funds a
Slide 13: One of the fastest-growing wealth management markets
One of the fastest-growing wealth management markets For personal use only Australian superannuation market - A$b (Assets under management) 1,400 1,200 CAGR 1,000 13% Market forecast to 800 grow at a CAGR of 600 10% over the next 400 10 years 200 0 2004 2005 2006 2007 2008 2009 2010 Australian lif
Slide 14: AMP ahead of industry change curve
AMP ahead of industry change curve Proposed industry reform AMP action/impact For personal use only Industry reforms • FSC (formerly IFSA) - All members to remove in- • Already removed built-in commissions on super, built super, pension and investment product pension and investment new business from
Slide 15: Role of M&A in driving AMP's growth
Role of M&A in driving AMP’s growth Significant organic opportunities exist to drive growth For personal use only Current environment could also provide attractive inorganic opportunities, but not a ‘must-do’ Clear criteria: Strategic – must accelerate delivery of one or more key growth init
Slide 16: AMP Financial Services market positions
AMP Financial Services is a scaleable, flexible leading wealth management business For personal use only AMP Financial Services is a scaleable wealth management business, strongly positioned in superannuation in Australia and New Zealand Strong competitive distribution advantage, with the larges
Slide 17: Corporate superannuation market share
Corporate superannuation market share (by AUM) For personal use only 25% 21.1% 20.4% 21.0% 20% 17.1% 15% 14.8%14.4% 14.1% 13.1% 10.0% 10.1% 10% 6.1% 6.2% 5% 0% AMP ANZ Mercer NAB WBC CBA March 2010 March 2009 Source: Plan for Life Masterfunds Report, March 2010. 2009 numbers have been restated to re
Slide 18: Australian financial planners
Australian financial planners For personal use only AMP 10% ANZ/ING 12% Other 48% AXA 7% CBA 7% WBC/SGB 6% NAB/MLC/Aviva 10% AMP Financial Planning ranked as largest dealer group in Australia, with above-system growth rate of 5.6% for 12 months to March 2010 Average age of an AMPFP planner is 45
Slide 19: CWM – AUM by product type
CWM – AUM by product type For personal use only Retail Corporate External Total* on AMP on AMP platform A$b platform platform Superannuation 17.4 16.5 1.7 35.6 Allocated pension/annuities 7.1 0.2 2.1 9.4 Managed investments 2.1 - 3.0 5.1 Total* 26.6 16.7 6.8 50.1 Over 70% of CWM AUM is in superann
Slide 20: Renovating core product set: AMP Flexible Super
Renovating core product set: AMP Flexible Super For personal use only Modular, simple, all-in-one superannuation and retirement solution Full solution launched in May 2010 – AUM of c$330m by 19 August Three modules, with prices and features to suit most Australians Core - simple investment c
Slide 21: CWM – platform and asset manager split
CWM – platform and asset manager split For personal use only 51% of AUM sit on AMP’s platform and are managed by AMPCI 32% of AUM sit on AMP’s platform and are managed by external fund managers 3% of AUM sit on AMP’s platform and are invested with AMP Banking 86% of assets under management sit on AM
Slide 22: Capital efficiency of AMP businesses
Capital efficiency of AMP businesses For personal use only Business Capital 30 June 2010 Comment requirements tangible capital CWM Low A$746m Capital requirements increase as unit-linked superannuation and retirement products increase AMP Bank (part of CWM) Medium A$279m Capital requirements linked
Slide 23: AMP Capital Investors
For personal use only AMP Capital Investors 43 AMP Capital Investors is a leading specialist investment manager AMP Capital Investors is a significant diversified investment manager in the Asia Pacific region with A$95bn* in assets under management Specialist investment manager focused on Asia P
Slide 24: External v internal average AUM and management fees
External v internal average AUM and AUM- based management fees (bps) For personal use only 44.6 100 43.3 43.1 42.3 24.3 24.5 23.8 80 22.9 Average AUM A$b 59.7 60 58.7 57.9 53.9 92% 90% other other 90% 91% other other 40 38.4 35.5 35.8 56% 34.8 Other = other 57% 56% equities, fixed 53% other other in
Slide 25: AMPCI – controllable costs and performance against benchmarks
AMPCI – controllable costs and cost to income ratio reflect ongoing growth investments For personal use only 170 67.7% 65.3% 160 Medium-term cost 55.2% to income ratio target 150 51.4% 53.6% Controllable costs A$m 140 130 138 136 120 124 123 110 100 104 90 80 70 1H 06 1H 07 1H 08 1H 09 1H 10 Control
Slide 26: AMPCI – diversified asset base and AUM by source
AMPCI – diversified asset base For personal use only Direct investment 1% Alternative assets 1% Infrastructure 6% Australian equities 22% Property 17% International equities 18% Fixed interest 35% Based on assets under management at 30 June 2010. 49 AMPCI – AUM by source Rest of the world 1% AUM s
Slide 27: AMPCI market share by asset class
AMPCI market share by asset class For personal use only 12% #2 #3 8% Rank # 2 #4 6.5% - total AUM market share #7 # 11 4% 0% Total AMPCI Property Australian Australian International International fixed interest equities equities fixed interest Source: Rainmaker Roundup – Sep 2009. 51 26