Amp Limited · ASX:AMP
Amp — Investor Day (November 2021)
110 slides from Amp's investor day presentation, Nov 30, 2021
Slide 1: Investor day
Investor day 30 November 2021
Slide 2: Acknowledgement of Traditional Custodians
AMP acknowledges the Traditional Custodians of the land on which we meet and the Custodians of the lands from which you are all joining us today. We pay our respects to Elders, both past and present and we extend that same respect and recognition to all First Nations Peoples. AMP LIMITED | 2021 INVE
Slide 3: Agenda
Agenda 1 Demerger update Alexis George 2 Chief Executive Officer AMP Limited strategy BREAK 3 Shawn Johnson PrivateMarketsCo overview and strategy Chief Executive, AMP Capital BREAK 4 Financials James Georgeson Chief Financial Officer 5 Q&A AMP LIMITED | 2021 INVESTOR DAY 3
Slide 4: Demerger update
Demerger update
Slide 5: Separating into two new, more focused businesses
Separating into two new, more focused businesses Different clients and geographies, different cultures and growth trajectories AMP SHAREHOLDERS Up to 20% stake AMP LIMITED Australia and New Zealand diversified wealth manager with retail customer base AMP Limited PrivateMarketsCo — AUM of A$131.2 bil
Slide 6: Setting up for long-term growth
Setting up for long-term growth Demerger rationale AMP Limited and PrivateMarketsCo will benefit from: Enhanced ability to focus on core businesses, and new market opportunities Simplified operating models and an ability to drive greater efficiencies Direct access to capital markets to support growt
Slide 7: Demerger progress
Demerger progress Operational separation on track for end of 2021; demerger in 1H 22 TODAY PrivateMarketsCo Demerger Commenced transfer of Management Equity First court date effective date Multi-Asset Group (MAG) Plan established – Demerger Operational PrivateMarketsCo to Australian Wealth Demerger
Slide 8: AMP Limited strategy
AMP Limited strategy
Slide 9: The path to the new AMP
The path to the new AMP Substantial progress made simplifying AMP and addressing legacy matters but more to do Number of existing programs completed or nearing completion by end of 2021 — AMP Life sale completed in June 2020; agreed to sell final stake in November 2021 — Core bank system simplified
Slide 10: Key market trends impacting AMP
Key market trends impacting AMP Landscape significantly changed over past three years; more change to come Key market trends and opportunities — Significant shift in number and nature of market participants — Downward pressure on margins across the broader financial services market — Ageing populati
Slide 11: Path to new AMP
Path to new AMP Streamline portfolio with a relentless focus on customers — Invest to grow AMP Bank — Grow the North platform, building new relationships with external financial REPOSITION advisers — Deliver stable earnings and optimal client outcomes in Master Trust and NZWM — Accelerate the transf
Slide 12: Reposition
Reposition
Slide 13: We are repositioning our businesses
We are repositioning our businesses Key drivers influencing strategic direction AMP Bank Australian Wealth Management — Customers’ increasing reliance on brokers Platforms — Monoline platforms driving competition — Digital capabilities becoming table stakes — Adviser trends: fewer, focus on High Net
Slide 14: AMP Bank
AMP Bank Market position and customer breakdown Reposition Australian mortgage market by loan book1 157,000 AMP Bank customers Australia loan size (A$bn) AMP Bank - Customers by age 2 AMP Bank Growth vs System 1.0x 1,860 14-29 7% +2.5% 1,766 +5.3% 1,723 100 % 30-44 31% 80 60 45-54 22% 40 20 55-64 16
Slide 15: AMP Bank
AMP Bank Build on mortgage and deposits growth from past 18 months Reposition Progress to date Simplified Bank platform architecture and modernised core system, delivering ~35% improvement in productivity Residential mortgage portfolio (A$bn) 2.5% CAGR Increased capacity in home loan origination
Slide 16: AMP Bank: Invest to grow
AMP Bank: Invest to grow Building technology-enabled service experience Reposition Our strategy Targeted outcomes through to FY 24 — Optimise Customer Value Proposition (CVP) and align our offer, policy Improve customer Consistent Top 3 ranking in and service to it Time to Yes for mortgage Broker Ex
Slide 17: Key trends driving Australian Wealth Management
Key trends driving Australian Wealth Management Wealth shift to decumulation Platforms and NFPs fastest growing segments Superannuation system is maturing, decumulation increasing Platforms a growth segment (specialist platforms rising) Total super FUM projections 2015-40F Wealth Market FUM June 202
Slide 18: We are transforming Australian Wealth Management
We are transforming Australian Wealth Management From a vertically integrated wealth model to a competitive, Reposition contemporary wealth model From To Platform focused on aligned adviser Market competitive platform targeting both Platforms distribution, multiple legacy products and aligned and ex
Slide 19: Australian Wealth Management: Platforms
Australian Wealth Management: Platforms Material progress in past 18 months to deliver double-digit growth Reposition Progress to date MyNorth continues strong growth with >10% AUM growth in 1H 21 Platform Industry FUA (A$bn)1 CAGR 10.0% 730 Managed portfolios growing rapidly to A$4bn by FY 21,
Slide 20: Grow North platform, build EFA relationships
Grow North platform, build EFA relationships Australian Wealth Management: Platforms Reposition Our strategy Targeted outcomes through to FY 24 — Transform administration and specialised support services to top Deliver market-leading Top quartile platform, quartile position and grow EFA segment reti
Slide 21: Australian Wealth Management: Master Trust
Australian Wealth Management: Master Trust Master Trust simplification delivering strong results for members Reposition Progress to date 2019 2020 Material simplification delivered over the last two years including Today (pre-Life sale) (post-Life sale) impact from AMP Life sale Trustees 2 1 1 S
Slide 22: Optimise client outcomes in competitive environment
Optimise client outcomes in competitive environment Australian Wealth Management: Master Trust Reposition Our strategy Targeted outcomes through to FY 24 — Finalise reset of business to address back book to front book issues 2Q investment returns, 20% reduction in controllable consistently above Ann
Slide 23: Australian Wealth Management: Advice
Australian Wealth Management: Advice Transforming legacy model to be competitive in a new era of advice Reposition Progress to date Increasing scale in Advice as the reshape nears completion Aligned adviser network has been materially reshaped to focus on high quality and sustainable advice practi
Slide 24: Accelerate the transformation of Advice
Accelerate the transformation of Advice Transform to a sustainable, standalone business; retaining Reposition benefits of an aligned network Our strategy Targeted outcomes through to FY 24 — Pursue strategy as a professional service provider, delivering valued licensee services at competitive and su
Slide 25: New Zealand Wealth Management
New Zealand Wealth Management Substantial progress made to transform NZWM into standalone Reposition efficient business Progress to date Continued to simplify operations through automation and digital % AUM by channel, NZWM transformation onshore with 30% FTE reduction in Customer Services 100 P
Slide 26: Deliver stable client earnings and optimal client outcomes
Deliver stable client earnings and optimal client outcomes New Zealand Wealth Management Reposition Our strategy Targeted outcomes through to FY 24 — Defend market share and leverage new lower cost Further leverage automation Launch new digital investment offer to drive lower total cost to client un
Slide 27: Simplify
Simplify
Slide 28: Redefine and right-size operating model for agility and efficiency
Redefine and right-size operating model for agility and efficiency On track to achieve A$300m cost out program (A$260m by FY 21 delivered) Simplify Progress to date Operating model redesign including span of control and Gross cumulative cost out Total: A$230m controllable; support functions (A$m)
Slide 29: Redefine and right-size operating model for agility and efficiency
Redefine and right-size operating model for agility and efficiency Disciplined focus on costs Simplify Our strategy Targeted outcomes through to FY 24 (A$m) — Radically simplify Advice business end-to-end, to achieve breakeven performance CTI low 60s in FY 24 down from 71% in 1H 21 20 Committing a —
Slide 30: Continue to review portfolio of assets to ensure AMP is the right owner
Continue to review portfolio of assets to ensure AMP is the right owner Optimise portfolio for the future Simplify — Sale of AMP Life complete in 2020 for A$3bn, including ~20% equity stake in Resolution Life Australasia (RLA) Life insurance — Residual equity stake sold November 2021 for A$524m cons
Slide 31: Explore
Explore
Slide 32: Further growth opportunities: Retirement
Further growth opportunities Retirement Explore Scale of the opportunity — Large and growing asset base in retirement phase with ageing population 60-65% of total wealth resides with households in retirement (A$3.1t) or approaching retirement in the next ten years (A$2.4t) — Lack of available produc
Slide 33: Further growth opportunities: Direct-to-consumer
Further growth opportunities Direct-to-consumer Explore Scale of the opportunity How we will improve our offering — Expanding direct-to-consumer (D2C) offers in AMP Bank will Build out our offering Complete the end-to-end provide capability and learnings to build D2C channels for incrementally start
Slide 34: China Life strategic partnerships
China Life strategic partnerships - China Life Pension Company and China Life AMP Asset Management Company Strong historic growth in a large, emerging market Explore Market Opportunity CLPC & CLAMP AUM growth (RMB bn) Largest financial services company China pension industry set for rapid CLPC CLAMP
Slide 35: Key enablers
Key enablers
Slide 36: Key enablers of our strategy
Key enablers of our strategy Strengthen and build to deliver now and into the future — Culture transformation – improve inclusion & diversity, strengthen accountability and performance Purpose — Purpose and values reset — Leadership engagement – led by new CEO and culture MEASURES: AMP employee enga
Slide 37: Purpose and culture
Purpose and culture Restoring the purpose and values that AMP was built on People & Culture Aligned employee journey, Employee Value Proposition and physical office Culture action space to enable & reinforce purpose and values. Commitment to reset AMP Limited purpose and values to create a simpler
Slide 38: Summary
Summary
Slide 39: Path to new AMP
Path to new AMP Streamline portfolio with a relentless focus on customers Measures of success — Invest to grow AMP Bank — Targeting 2-3x bank asset (system) growth through — Grow the North platform, building new relationships with external next three years financial advisers — Increase EFA inflows f
Slide 40: Priorities for the next 12 months
Priorities for the next 12 months Relentless in our pursuit of delivering for customers and shareholders Complete demerger Reduce cost base Grow Bank Focus on EFA flows Explore new business Revitalise culture in platform opportunities Section 2 | AMP LIMITED | 2021 INVESTOR DAY 40
Slide 41: PrivateMarketsCo business overview and strategy
PRIVATEMARKETSCO BUSINESS OVERVIEW AND STRATEGY AMP 2021 INVESTOR DAY 30 November 2021
Slide 42: Attractive market
ATTRACTIVE MARKET
Slide 43: Growing global demand for private markets
2021 INVESTOR DAY GROWING GLOBAL DEMAND FOR PRIVATE MARKETS OPPORTUNITY FOR SHAREHOLDERS TO GAIN UNIQUE EXPOSURE TO SOME OF THE FASTEST GROWING ASSET CLASSES Private Markets AUM Forecast (US$tn), 2019 - 20251 Significant opportunity for PrivateMarketsCo Private Equity Infrastructure 13.9 Real Estate
Slide 44: Our business today
OUR BUSINESS TODAY ee ae te
Slide 45: Today – capitalising on market demand
2021 INVESTOR DAY TODAY – CAPITALISING ON MARKET DEMAND DIVERSIFIED REAL ESTATE AND INFRASTRUCTURE INVESTMENT OPPORTUNITIES ACROSS RISK PROFILES & GEOGRAPHIES Global reach with the Deep experience with Value-add active Unique investment platform benefit of local knowledge strong track record asset m
Slide 46: Unique platform poised for global growth
2021 INVESTOR DAY UNIQUE PLATFORM POISED FOR GLOBAL GROWTH $50B INVESTMENT PLATFORM WITH TOP 10 MARKET STRENGTH IN REAL ESTATE AND INFRASTRUCTURE Real Estate Infrastructure Equity Infrastructure Debt Global market leader in infrastructure mezzanine Leading Australian real estate manager Leading glob
Slide 47: Strong sector experience, international reach
2021 INVESTOR DAY STRONG SECTOR EXPERIENCE, INTERNATIONAL REACH DEEP MARKET ACCESS IN TARGET LOCATIONS TO ORIGINATE DEALS POISED FOR VALUE CREATION Infrastructure Debt Real Estate 18 investment professionals Achieve Team of over 500 real Peel Ports together estate professionals 90 investments London
Slide 48: Increasingly international client base
2021 INVESTOR DAY INCREASINGLY INTERNATIONAL CLIENT BASE 77% INSTITUTIONAL CLIENTS OUTSIDE OF AUSTRALIA; FURTHER POTENTIAL TO UNLOCK IN TARGET COUNTRIES Direct Institutional Clients by Region (#)1 Direct Institutional Clients AUM by Location2 Direct Institutional Clients AUM by Type2 Asia North Amer
Slide 49: Globally sourced AUM
2021 INVESTOR DAY GLOBALLY SOURCED AUM INCREASING PENETRATION OF ASIA & NORTH AMERICA DRIVEN BY INFRASTRUCTURE EQUITY & DEBT North America Europe, Middle East, & Africa Asia Australia & NZ Sourced AUM (A$bn)1 Sourced AUM (A$bn)1 Sourced AUM (A$bn)1 Sourced AUM (A$bn)1 Infrastructure Debt +5% Infrast
Slide 50: Future strategic direction
FUTURE STRATEGIC DIRECTION
Slide 51: Separate, simplify, grow & diversify
2021 INVESTOR DAY SEPARATE, SIMPLIFY, GROW & DIVERSIFY A CLIENT LED, GLOBALLY INTEGRATED INVESTMENT MANAGER Diversify product offering • Create new product opportunities Grow client base alongside current investment • Build a global client solutions team strategies Simplify the business • Scale exis
Slide 52: Complete demerger
2021 INVESTOR DAY COMPLETE DEMERGER A STANDALONE, INTEGRATED INVESTMENT MANAGER BY JUNE 2022 Shawn Johnson Finalised Private announced as Demerger Markets operating AMP Capital CEO Commenced transfer First stage of effective date – model with leadership Demerger of Multi-Asset Group separation compl
Slide 53: Simplify & restructure cost base
2021 INVESTOR DAY SIMPLIFY & RESTRUCTURE COST BASE TARGETING RUN-RATE COSTS ~A$300M BY FY 23 AMP Capital Cost Base Transformation (A$m)1 522 Public Markets separation 67 • Transfer of Multi-Asset Group (MAG) to AMP Australia to be complete 26 by 1H 22 144 • Sale of Global Equity and Fixed Income bus
Slide 54: Grow client base
2021 INVESTOR DAY GROW CLIENT BASE GLOBAL CLIENT SOLUTIONS TEAM TO DRIVE CLIENT GROWTH ACROSS ALL MARKETS & PRODUCTS • Globally integrated teams with regional specialism working across all product offers Global Client Solutions • Trusted partner to high quality client base with Sales teams located a
Slide 55: Diversify product offering
2021 INVESTOR DAY DIVERSIFY PRODUCT OFFERING CLIENT-LED PRODUCT INNOVATION TO DEEPEN CLIENT RELATIONSHIPS AND DIVERSIFY REVENUES • The majority of PrivateMarketCo’s 492 direct institutional clients only invest in one fund strategy1 • Client-led product innovation will address client needs and increa
Slide 56: ESG framework & credentials
2021 INVESTOR DAY ESG FRAMEWORK & CREDENTIALS CREATING ENDURING VALUE THROUGH SUSTAINABLE INVESTMENT PRACTICES Three pillars: ESG Objectives Focus areas CREDENTIALS We drive continual improvement in environmental 2001 First commitment to performance, so that our responsible investing investments re
Slide 57: ESG embedded through the investment cycle
2021 INVESTOR DAY ESG EMBEDDED THROUGH THE INVESTMENT CYCLE INTEGRATING ESG FACTORS INTO INVESTMENT DECISIONS FOR ALMOST TWO DECADES Origination Acquisition Active Management ESG Monitoring & Disclosure • ESG integration in all • Transaction due diligence • Platform & Fund ESG • Measurement of ESG i
Slide 58: Increasing revenue from closed ended funds
2021 INVESTOR DAY INCREASING REVENUE FROM CLOSED ENDED FUNDS CLOSED-ENDED FUND REVENUE INCREASING FROM SUCCESS IN INFRASTRUCTURE EQUITY & DEBT PrivateMarketsCo Direct Fund Revenues (A$m) Open ended IDF IV Closed ended GIF II IDF III 492 GIF I 475 +13% • Positive direct fund revenue growth at 13% 406
Slide 59: Open vs. closed-ended funds
2021 INVESTOR DAY OPEN VS. CLOSED-ENDED FUNDS DIFFERENT APPROACHES GENERATE DIFFERENT FINANCIAL OUTCOMES Open-Ended Funds Closed-Ended Funds • Clients can redeem or add capital • No redemptions nor additional capital after final close1 • Fees are based on percentage of AUM • Fees are based on percen
Slide 60: Closed end fund structure
2021 INVESTOR DAY CLOSED-ENDED FUND STRUCTURE CLOSED END FUND LIFECYLE DELIVERS LONG TERM VALUE FOR CLIENTS AND SHAREHOLDERS 1 Existing closed-ended funds • Management fees earned upon receipt Fundraising and of committed capital (GIF Fund Series) Global infrastructure equity 1 investment or investe
Slide 61: Historical earnings
2021 INVESTOR DAY HISTORICAL EARNINGS NEAR-TERM EBIT MARGIN EXPECTED IN THE 20-25% RANGE; LONGER-TERM TARGET IN THE 30-35% RANGE 1 PrivateMarketsCo Total Revenue and EBIT (A$m)2 Historical Earnings Characteristics Outsized 2019 performance driven EBIT by one-off drivers • Revenue mix shifting toward
Slide 62: Sponsor capital alignment with client interests
2021 INVESTOR DAY SPONSOR CAPITAL ALIGNMENT WITH CLIENT INTERESTS ~A$1BN IN SPONSOR INVESTMENTS TO SUPPORT GROWTH IN PRODUCT OFFERINGS OVER THE MEDIUM TERM 1 Illustrative Seed & Sponsor Profile Post-Demerger Infrastructure Debt 18% • Seed & sponsor capital rising driven by house investment into real
Slide 63: Outlook
2021 INVESTOR DAY OUTLOOK MAINTAIN MOMENTUM IN GLOBAL DIVERSIFICATION AND DELIVER EFFICIENCIES TO ACHIEVE TARGET EBIT RANGE Revenue Revenue AUM Growth Stable revenue from base Episodic earnings from Fundraising to offset AUM reductions Client growth and product management fees transaction fees, perf
Slide 64: Talented people and strong leadership
2021 INVESTOR DAY TALENTED PEOPLE AND STRONG LEADERSHIP WORKING AS ONE UNITED PRIVATE MARKETS GLOBAL TEAM TO DELIVER FOR OUR CLIENTS & SHAREHOLDERS Shared advantage Global business For our clients and the communities Breadth of access to opportunities which we invest in To be for growth and scale re
Slide 65: Management equity plan
2021 INVESTOR DAY MANAGEMENT EQUITY PLAN GLOBALLY COMPARABLE MANAGEMENT EQUITY PLAN TO PROTECT VALUE AND INCENTIVISE GROWTH Why is it important? Management Equity Plan Publicly available market examples1 1) Retain key investment professionals to protect the • Investment management is a people Employ
Slide 66: Summary
SUMMARY
Slide 67: A unique opportunity for shareholders
2021 INVESTOR DAY A UNIQUE OPPORTUNITY FOR SHAREHOLDERS Globally private markets is highly attractive to clients and has significant forward momentum PrivateMarketsCo is poised for future growth - a unique investment platform with a strong track record Separate, Simplify, Grow and Diversify to gener
Slide 68: Financials
Financials
Slide 69: Post-demerger 1H 21 view of AMP Limited and PrivateMarketsCo earnings
Post-demerger 1H 21 view of AMP Limited and PrivateMarketsCo earnings1 MAG and CLAMP transferred from AMP Capital to AMP Limited; GEFI to be sold AMP Capital AMP AMP Ltd 1H 21 Public Markets Ltd adjusted Profit and loss Group (ex (ex Private (A$m) total (as Private AMP Markets reported) Markets MAG
Slide 70: AMP Limited earnings summary
AMP Limited earnings summary AMP Limited NPAT contribution post demerger AMP Ltd NPAT contribution Perimeter changes Business performance (adjusted) 1 A$m 1H 21 FY 20 FY 19 — Business units reflect FY 21 reporting — Reduction in profitability between FY presentation with Australian Wealth 19 and 1H
Slide 71: PrivateMarketsCo earnings summary
PrivateMarketsCo earnings summary PrivateMarketsCo NPAT contribution post demerger PrivateMarketsCo contribution Perimeter changes Business performance A$m 1H 21 FY 20 FY 19 — Business units reflect FY 21 reporting — 1H 21 and FY 20 infrastructure presentation with PrivateMarketsCo equity and infras
Slide 72: Capital movements and allocations – indicative 1H 21 split
Capital movements and allocations – indicative 1H 21 split Asset divestment to support demerger and strengthen real estate platform 1H 21 pro-forma group capital splits for major capital movements (A$m) — As at 1H 21, total surplus capital resources for the Group 459 were A$452m — 1H 21 pro-forma po
Slide 73: Debt repayment profile
Debt repayment profile Continued deleveraging of the Group’s balance sheet Expected debt repayment and refinancing profile of the AMP Group 1 (June 2021 to December 2022) 3000 — Efforts to deleverage the balance sheet General Group Debt USD continue. This aligns with Reg S MTN Undrawn facilities ann
Slide 74: Controllable cost targets and demerger impacts
Controllable cost targets and demerger impacts FY 22-24 cost out program to deliver A$135m net controllable cost savings On track to achieve controllable cost guidance (ex AMP FY 21 - 24 controllable cost movements (A$m) Capital) of A$775m by FY 21 23.5% reduction — Continuing to make good progress
Slide 75: Summary AMP Limited financial guidance profile
Summary AMP Limited financial guidance profile Targeting double-digit return on equity over the medium-term Earnings recovery expected to be underpinned by: — Continued growth in North cashflows, with total Wealth cashflows positive by FY 23 — Strong growth in in residential mortgages in AMP Bank, t
Slide 76: Summary PrivateMarketsCo financial guidance profile
Summary PrivateMarketsCo financial guidance profile Maintain momentum in global diversification and deliver efficiencies to achieve target EBIT Earnings recovery expected to be underpinned by: — Episodic earnings from transaction fees and performance fees / carried interest are uncertain, driven by
Slide 77: Appendix
Appendix
Slide 78: Financial guidance
Financial guidance Outlook for key financial items AWM1 Platforms1 China Capital and dividends – FY 21 AUM based revenue margins expected – Targeting strong net cash flow growth leading – Continued growth from CLPC and CLAMP – Targeting low double digit sustainable Return to be ~65 bps, with a furth
Slide 79: Improved Group cost allocation
Improved Group cost allocation Additional allocation of business-related costs from Group Office to increase business focus and enhance decision making — New cost allocation methodology will increase business unit and Group Office costs divisional focus and ensure cost accountability — Reduction of
Slide 80: Bank – adjusted historical earnings and performance
Bank – adjusted historical earnings and performance Productivity and process improvements to support above system growth ambitions Bank Business performance and drivers Profit and loss (A$m) 1H 21 FY 20 FY 19 — Business well positioned for future growth, with FY 20 impacted by COVID and a deliberate
Slide 81: Split of Australian Wealth Management earnings
Split of Australian Wealth Management earnings AWM earnings perimeter adjusted for future transfer of MAG to AWM and increased Group cost allocations to business divisions 1H 21 – post MAG transfer1 AWM total 20 Master WM & Platforms1 Advice 1H 21 Profit and loss (A$m) Trust1 Other 48 45 Revenue 185
Slide 82: Advice – adjusted historical earnings performance
Advice – adjusted historical earnings performance Business evolving to a service-led proposition for all advisers; breakeven ambition by FY 24 Advice1 Business performance and drivers Profit and loss (A$m) 1H 21 FY 20 FY 19 — The Advice business continues to evolve from a historical channel for prod
Slide 83: Master Trust – adjusted historical earnings and key drivers
Master Trust – adjusted historical earnings and key drivers Margins stabilising with a strong focus on cost control and investment performance Master Trust1 Business performance and drivers Profit and loss (A$m) 1H 21 FY 20 FY 19 Revenue 277 573 704 — Platform and product consolidation now complete;
Slide 84: Platforms – adjusted historical earnings and key drivers
Platforms – adjusted historical earnings and key drivers Strong operating margins with further upside from AUM growth Platforms1 Business performance and drivers Profit and loss (A$m) 1H 21 FY 20 FY 19 — Revenues predominantly driven by flows into flagship platform, MyNorth, Revenue 185 360 383 acco
Slide 85: NZWM – adjusted historical earnings and key drivers
NZWM – adjusted historical earnings and key drivers An efficient and standalone business focused on client outcomes NZWM Business performance and drivers Profit and loss (A$m) 1H 21 FY 20 FY 19 — Revenue is primarily derived from wealth management products, including Revenue 76 151 159 KiwiSaver, co
Slide 86: AMP adjusted historical earnings reflect future MAG transfer
AMP adjusted historical earnings reflect future MAG transfer and Group allocations Earnings adjusted for perimeter changes on demerger and further Group cost allocations to business divisions Bank AWM1 NZWM Group AMP Ltd total Profit and loss (A$m) 1H 21 FY 20 FY 19 1H 21 FY 20 FY 19 1H 21 FY 20 FY
Slide 87: AWM adjusted historical earnings reflect future MAG transfer
AWM adjusted historical earnings reflect future MAG transfer and Group allocations Earnings perimeter adjusted for future transfer of MAG to AWM and increased Group cost allocations to business divisions Platforms1 Master Trust1 Advice Wealth & Other AWM total Profit and loss (A$m) 1H 21 FY 20 FY 19
Slide 88: PrivateMarketsCo historical earnings profile
PrivateMarketsCo Historical earnings profile Recent business performance impacted by irregularity of performance and transaction fees and COVID-19 related impacts on some seed & sponsor asset classes Infra equity Infra debt Real estate Corporate operations 1 Total Profit and loss (A$m) 1H 21 FY 20 F
Slide 89: China Life Pension Company (CLPC)
China Life Pension Company (CLPC) Established 2007, partnership since 2015, 19.99% ownership — Only operating foreign pension JV in the Chinese domestic market — Competes for pension (superannuation) business across all of China’s 3-pillar system — Focused on Pillar 2, akin to corporate super – Ente
Slide 90: China Life AMP Asset Management Company Limited (CLAMP)
China Life AMP Asset Management Company Limited (CLAMP) Established 2013, AMP a founding partner, 14.97% ownership — Distributes and manages investment solutions for over 1m retail customers and 3,000 institutional clients, via direct sales, agents and third party channels — Retail and institutional
Slide 91: PrivateMarketsCo appendix
PRIVATEMARKETSCO ~ APPENDIX . : i |
Slide 92: Experienced global board to be in place prior to listing
2021 INVESTOR DAY EXPERIENCED GLOBAL BOARD TO BE IN PLACE PRIOR TO LISTING Global search underway Patrick Snowball Andrew Fay Shawn Johnson* Michael Sammells for additional independent, non-executive directors Chairman Designate Deputy Chairman Chief Executive Officer Director Designate New York Lon
Slide 93: Global leadership team with strong track record
2021 INVESTOR DAY GLOBAL LEADERSHIP TEAM WITH STRONG TRACK RECORD International Shawn Johnson* Kylie O’Connor Patrick Trears* Ruben Bhagobati Damian Stanley Michael Bessell Michael Cummings reach CEO Global Head of Global Head of Global Co-Head of Global Co-Head of Global Co-Head of Global Co-Head o
Slide 94: PrivateMarketsCo historical earnings profile
2021 INVESTOR DAY PRIVATEMARKETSCO HISTORICAL EARNINGS PROFILE PMCo (A$m) FY 15 FY 16 FY 17 FY 18 FY 19 FY 20 Base management revenue 142 180 207 250 342 347 Non AUM based revenue 71 76 72 88 92 72 Performance and transaction 38 62 72 66 80 25 Carried interest 0 0 0 0 0 20 Seed and sponsor gross inc
Slide 95: Real estate
3) REAL ESTATE
Slide 96: Real estate
2021 INVESTOR DAY REAL ESTATE ONE OF THE LARGEST AND MOST EXPERIENCED DIRECT REAL ESTATE FUND MANAGERS IN ASIA PACIFIC REGION ESG Leader Deep experience • GRESB: 92% average score across all funds Real estate heritage of (outperforming global average by 19 points)* over 60 years Vertically integrate
Slide 97: Sustained investment momentum for real estate
2021 INVESTOR DAY SUSTAINED INVESTMENT MOMENTUM FOR REAL ESTATE CAPITAL ALLOCATIONS TO REAL REAL ESTATE IS DELIVERING SUPERIOR SIGNIFICANT APPETITE TO INCREASE ESTATE AT RECORD LEVELS INCOME RETURNS REAL ESTATE INVESTMENT IN APAC Global real estate dry powder1 (US$bn) Current yield2 (%) Current vs.
Slide 98: Value enhancing investment approach
2021 INVESTOR DAY VALUE ENHANCING INVESTMENT APPROACH FUNDS MANAGEMENT INTEGRATED WITH ACTIVE ASSET MANAGEMENT EXPERTISE TO DELIVER VALUE Split of revenues excluding JV income (FY 20) Comprehensive funds management service offering Funds management revenue 11% Funds • Portfolio construction FUM x ag
Slide 99: Real estate
2021 INVESTOR DAY REAL ESTATE % of AUM performing above benchmark (3-year rolling)1 AUM by geographical region as at 30 June 20212 98 88 5% 75 6% 72 75% Target 12% Asia Europe and MEA North America Australia & NZ 77% 2017 2018 2019 2020 AUM profile (A$bn)3 AUM by investor type as at 30 June 20212 30
Slide 100: Infrastructure equity
Ve — WX INFRASTRUCTURE EQUITY
Slide 101: Infrastructure equity
2021 INVESTOR DAY INFRASTRUCTURE EQUITY LEADING GLOBAL MANAGER IN INFRASTRUCTURE EQUITY Awards and recognition Leading mid-market deal experience 53 investments 2021 Social Infrastructure Deal of the Year, Enel X Over 50 investment A$200 – 700m professionals managed across Europe, North America, New
Slide 102: Value add investment process
2021 INVESTOR DAY VALUE ADD INVESTMENT PROCESS ACTIVE MANAGEMENT EXPERIENCE INTEGRATED ACROSS ONE GLOBAL PLATFORM TO DELIVER VALUE Mid-market deal experience Less competitive | Deep market | Relative value Grow top line Execute revenue & Global ESG Benchmark for real assets Control accretive M&A red
Slide 103: Infrastructure equity
2021 INVESTOR DAY INFRASTRUCTURE EQUITY % of AUM performing above benchmark (3-year rolling)1 AUM by geographical region as at 30 June 20212 100 100 100 11% 73 75% Target Asia 48% Europe and MEA 34% North America Australia & NZ 8% 2017 2018 2019 2020 AUM profile (A$bn)3 AUM by investor type as at 30
Slide 104: Infrastructure debt
INFRASTRUCTURE DEBT
Slide 105: Infrastructure debt
2021 INVESTOR DAY INFRASTRUCTURE DEBT GLOBAL MARKET LEADER IN INFRASTRUCTURE MEZZANINE DEBT Awards and recognition Global market leader infrastructure mezzanine debt 18 investment 90 investments Best Debt Fund Manager professionals over 20 years IJInvestor Awards 2019, 2020 Debt Fundraising of the Y
Slide 106: Value add investment process: debt
2021 INVESTOR DAY VALUE ADD INVESTMENT PROCESS: DEBT PRICING STRENGTH, BESPOKE MEZZANINE SOLUTIONS AND EXECUTION STRENGTH DRIVE DEBT OUTCOMES FOR CLIENTS Valuation creation pyramid Case Study: Leading global renewable energy company PMCo sole leader arranger and structuring on C$100m+ of subordinate
Slide 107: Infrastructure debt
2021 INVESTOR DAY INFRASTRUCTURE DEBT % of AUM performing above benchmark (3-year rolling)1 AUM by geographical region as at 30 June 20212 100 100 100 100 1% 27% 75% Target Asia Europe 48% North America Australia & NZ 23% 2017 2018 2019 2020 AUM profile (A$bn)3 AUM by investor type as at 30 June 202
Slide 108: Important notice
Important notice Summary information 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 summar
Slide 109: Important notice (continued)
Important notice (continued) Financial data No offer or sale Investors should be aware that certain financial measures included in this presentation are The securities mentioned herein have not been, and will not be, registered under the U.S. ‘non-IFRS financial information’ under ASIC Regulatory Gu
Slide 110: Slide 110