Amp Limited · ASX:AMP
Amp — Debt Investor Presentation (March 2009)
17 slides from Amp's debt investor presentation, Mar 3, 2009
Slide 1: AMP Notes Investor presentation March 2009
NOT FOR DISTRIBUTION OR RELEASE INTO UNITED STATES OR TO US PERSONS For personal use only AMP Notes Investor presentation March 2009
Slide 2: Important notice
Important notice This presentation has been prepared by AMP Group Finance Services Limited (ABN 95 084 247 914) (“Issuer”), in connection with the offer of AMP Notes in Australia and New Zealand (Offer). The Offer is made under a prospectus which was lodged with the Australian Securities and Investm
Slide 3: Offer snapshot
Offer snapshot For personal use only Issuer: AMP Group Finance Services Limited Guarantor: AMP Group Holdings Limited (A/A2)1 Security: Interest-bearing unsecured subordinated notes called AMP Notes AMP Notes are split into two series, offered concurrently: A$ AMP Notes and NZ$ AMP Notes Offer size:
Slide 4: AMP structure
AMP structure The AMP Notes will benefit from a Guarantee, on a subordinated and unsecured basis, For personal use only from AMP Group Holdings (A/A2)1, a wholly owned subsidiary of AMP Limited and holding company of AMP’s non-banking activities including AMP Life (AA-/Aa2)1 and AMP Capital Invest
Slide 5: About AMP
About AMP For personal use only AMP Group is a leading wealth management company in Australia and New Zealand Australia’s leading superannuation provider and the number two in the retirement incomes market in Australia One of the top four providers of individual risk insurance in Australia and n
Slide 6: AMP business units
AMP business units For personal use only AMP Financial Services Contemporary Wealth Contemporary Wealth Mature New Zealand Management Protection • Retail superannuation • Term, disability and • Closed life business • Risk insurance • Corporate superannuation income protection ¾Whole of life • Mature
Slide 7: FY08 results summary
FY08 results summary For personal use only Sound result in tough market underscores resilience of AMP’s business ¾ Underlying profit of A$810m, with good profit growth in non-AUM businesses ¾ Controllable cost growth kept to 1% ¾ Contemporary wealth management net cashflows over A$2b ¾ Capital res
Slide 8: Profit summary
Profit summary For personal use only A$m FY 08 FY 07 % change AFS Contemporary Wealth Management 266 306 -13% AFS Contemporary Wealth Protection 154 119 +29% AFS Mature 161 190 -15% AFS New Zealand 56 48 +17% AMP Capital Investors 136 150 -9% BU operating earnings 773 813 -5% Group office costs (36)
Slide 9: Key FY performance measures
Key FY 08 performance measures For personal use only Underlying return on equity increased 1.0 percentage point to 38.9% Total operating earnings of A$737m, down 4% Cost ratio up to 41.3% from 39.7% in FY 07 Growth measures: ¾ Net cashflows in AMP Financial Services of A$1.4b, down from A$2.
Slide 10: Capital Management
Capital Management AMP remains strongly capitalised, with A$898m in surplus capital For personal use only above MRR at 31 December 2008 (before AMP Notes Offer), reflecting disciplined and dynamic capital management approach Proactive management of both capital and funding requirements have enha
Slide 11: AMP Notes strengthen AMP's regulatory capital
AMP Notes strengthen AMP’s regulatory capital For personal use only AMP Notes will qualify as Lower Tier 2 capital under APRA’s Prudential Standards AMP Notes will improve AMP’s regulatory capital coverage ratio to 2.4x (prev. 2.1x) Pro forma capital position of AMP Group Pro forma Full year to
Slide 12: Group debt profile
Group debt profile 1 For personal use only 31 December 2008 Pro forma post issue 31 December 20082 Group debt (A$m) Due within 1 year 443 443 Due > 1 year 1,061 1,361 Total 1,504 1,804 S&P gearing 14% 17% Interest cover (underlying) 10.9x 9.2x Group gearing at 31 December 2008 remained low at 14%
Slide 13: Key features of AMP Notes
Key features of AMP Notes A$ AMP Notes NZ$ AMP Notes For personal use only Structure 10NC5 step-up 10NC5 step-up Issue credit ratings A-/A3 (provisional) A-/A3 (provisional) Currency Australian dollars New Zealand dollars Issue price A$100.00 per A$ AMP Note NZ$1.00 per NZ$ AMP Note Interest payment
Slide 14: AMP Notes Offer
AMP Notes Offer For personal use only AMP Notes Offer information Investors Retail and Institutional Institutional offer Broker Firm offer Offer categories Shareholder offer General offer In the event of excess demand, the shareholder offer and AMP customers will have priority Priority o
Slide 15: APRA regulatory capital
APRA regulatory capital For personal use only Category Example Senior debt Debt Short-dated subordinated debt Lower Tier 2 (eg AMP Notes) Increasing: Perpetual step-up securities - Subordination Upper Tier 2 (cumulative) - Loss absorption Perpetual step-up securities - Permanence Innovative Tier 1 (
Slide 16: Key differences to recent CPS offerings
Key differences to recent CPS offerings For personal use only AMP Notes Recent CPS offerings Ranking Ranks ahead of equity Ranks ahead of ordinary equity Ranks ahead of Tier 1 securities Ranks behind Tier 2 securities One notch off senior rating Two notches off senior rating Interest payments Intere
Slide 17: Indicative timetable
Indicative timetable Key dates for the Offer For personal use only Lodgement of Prospectus On or around Tuesday 3 March 2009 Bookbuild Tuesday 10 March 2009 Broker bids due at 11.00am (Sydney time) Institutional bids due at 1.00pm (Sydney time) Initial Margin announced Wednesday 11 March 2009 Openin