Slide 1: 12 August 2021
12 AUGUST 2021
Slide 2: Alexis George and James Georgeson
Alexis George James Georgeson Chief Executive Officer Chief Financial Officer
Slide 3: Agenda
Agenda Executive 1H 21 financial Progress on Demerger 1H 21 key summary results strategic update takeaways objectives
Slide 4: Executive summary
Executive summary
Slide 5: Executive summary
Executive summary Financials Strategy 2H 21 focus — 1H 21 NPAT (underlying) of A$181m up 57% — Good progress on transformation and 2021 — Primary focus on delivery of demerger - assisted by improved economic and market market commitments: establishing independent governance, conditions and ongoing d
Slide 6: Improving outcomes for our customers, people, communities
Improving outcomes for our customers, people, communities Increased engagement delivering positive results Our customers Our people Our community AMP Australia providing advice to >100,000 Embedded new flexible working Strengthened commitment to addressing customers and intrafund advice to >1million
Slide 7: 1H 21 financial results
1H 21 financial results
Slide 8: 1H 21 profit summary
1H 21 profit summary A$m 1H 21 2H 20 1 1H 20 1 % 1H 21/1H 20 Australian wealth management 48 45 58 (17.2) AMP Bank 88 69 50 76.0 AMP Capital2 61 58 75 (18.7) New Zealand wealth management 20 18 18 11.1 Group Office (36) (72) (86) 58.1 NPAT (underlying)3 181 118 115 57.4 Items reported below NPAT (35
Slide 9: Items reported below underlying profit
Items reported below underlying profit Primarily reflects transformation and remediation spend offset by one-off New Zealand real estate gain A$m 1H 21 2H 20 1H 20 % 1H 21/1H 20 Gain on sale of AMP Life and separation costs - 1 90 n/a Client remediation and related costs (33) (54) (19) (73.7) Risk m
Slide 10: AMP Australia – wealth management
AMP Australia – wealth management Business in transformation: stronger AUM and cost performance offset by advice reshape and pricing impacts 1H 21 business unit highlights — 1H 21 NPAT A$48m (1H 20: A$58m) reflecting impact of reshape impacts, pricing and legislative changes — Australian wealth mana
Slide 11: AMP Australia – AMP Bank
AMP Australia – AMP Bank Strong earnings growth on improved economic outlook and funding conditions 1H 21 business unit highlights — 1H 21 NPAT of A$88m increased A$38m from 1H 20 (A$50m) — Improved macro-economic outlook resulted in A$12m release of 1H 20 credit-loss provision previously taken in r
Slide 12: New Zealand Wealth Management
New Zealand Wealth Management Earnings growth supported by positive markets and strong cost focus 1H 21 business unit highlights — 1H 21 NPAT of A$20m increased A$2m (1H 20: A$18m) reflecting stronger investment markets and tight cost control, offsetting the impact of margin compression associated w
Slide 13: AMP Capital
AMP Capital Stable earnings from AUM based revenues, lower performance and transaction fees 1H 21 business unit highlights — NPAT down to A$61m1 (1H 20: A$75m) primarily due to lower performance and transaction fees, which vary from period-to-period — AUM-based revenue reduced 4.2% to A$275m (1H 20:
Slide 14: Controllable costs
Controllable costs Controllable costs (ex. AMP Capital) of A$387m, 6% lower due to disciplined cost management ▼6% Key movements in 1H 21: A$m 17 (28) 36 — Disciplined cost management has (32) reduced costs by A$66m through the Regulatory simplification of organisation and 410 and Simplifying struct
Slide 15: Gross cost out
Gross cost out 56% of cumulative gross cost-out savings achieved to date Cost-out program — Cumulatively A$169m of gross cost- (A$m) Delivery to date out savings have been delivered by A$169m 1H 21 — FY 21 target of A$130m gross costs: FY 21, A$30m from variable costs, A$100m from controllable costs
Slide 16: Client remediation
Client remediation Client remediation program fully provisioned; costs within 6% of original estimates Inappropriate advice program: — Reviews 100% complete — A$35m remediation paid to date, with a further A$5m offered to customers 2018 1H 21 Fee For No Service (FFNS) program: Program File reviews c
Slide 17: Capital position
Capital position Strong surplus capital maintained following completion of on-market share buy-back A$m Key movements in 1H 21: — 1H 21 surplus capital of A$452m above 181 (35) our target requirements (196) — Completed on-market share buy-back Below the in 1H 21 deploying A$196m of capital line cost
Slide 18: FY 21 guidance
FY 21 guidance Business performance Controllable costs Australian wealth management Controllable costs (ex AMP Capital) – FY 21 margin compression of 7bps (vs FY 20) from pricing and simplification initiatives – FY 21 expected to be A$775m reflecting transformation – 2H 21 to be broadly in-line with
Slide 19: Progress on strategic objectives
Progress on strategic objectives
Slide 20: 2021 market commitments
2021 market commitments Delivering the next phase of AMP’s strategic transformation Progress to date 2H 21 focus Complete advice reshape program whilst sustaining AUM; continue build of multi-channel advice business Complete next phase of superannuation simplification to reduce risk and improve effi
Slide 21: Reinvent wealth management in Australia: reshaping advice
Reinvent wealth management in Australia Reshaping advice to be more productive and professional FY 21 commitment Progress to date 2H 21 focus – Advice reshape >95% complete – Embed new commercial terms with advisers – Launch of new service model to support advisers – Increase focus on becoming the l
Slide 22: Reinvent wealth management in Australia: simplifying super
Reinvent wealth management in Australia Simplifying super to improve efficiency and drive customer benefits FY 21 commitment Progress to date 2H 21 focus – Phase one and two complete, delivering significant – Transform investment performance and operational benefits to superannuation members model –
Slide 23: Reinvent wealth management in Australia: growing platform
Reinvent wealth management in Australia Growing a successful platform business FY 21 commitment Progress to date 2H 21 focus – Completed North re-pricing, delivering some of the – Launch new capabilities including equity managed lowest fees in the platforms market portfolios – Commenced re-brand of
Slide 24: Reinvent wealth management in Australia: AMP Bank momentum
Reinvent wealth management in Australia Re-establishing growth momentum in AMP Bank FY 21 commitment Progress to date 2H 21 focus – Sustainable growth delivered in a highly competitive – Build awareness of AMP Bank market – Continue to invest in proposition including First – 75% improvement in autom
Slide 25: Grow New Zealand business
Grow New Zealand business Positioning New Zealand Wealth Management for growth FY 21 commitment Progress to date 2H 21 focus – Transfer to new investment approach – Deliver new investment management approach with well progressed a clear focus on meeting local market – New investment management appro
Slide 26: Expand asset management footprint in private markets
Expand asset management footprint in private markets Building a leading global private markets platform FY 21 commitment Progress to date 2H 21 focus – Flagship infrastructure debt fund raise strategies continue to – Continue fundraising momentum in core attract strong investor interest and commitme
Slide 27: Create a simpler, leaner business
Create a simpler, leaner business Building on positive momentum to progress FY 21 commitments FY 21 commitment Progress to date 2H 21 focus – Cost-out initiatives well progressed towards FY 21 – Deliver target A$130m of gross cost savings in FY 21: targets in 1H 21 A$100m from controllable costs, A$
Slide 28: Embed an inclusive, accountable and high-performing culture
Embed an inclusive, accountable and high-performing culture Building on positive momentum to progress FY 21 commitments FY 21 commitment Progress to date 2H 21 focus – Met 40:40:20 target for gender diversity at Board, middle management and broader – Extend inclusive leadership training to all workf
Slide 29: Demerger update
Demerger update
Slide 30: Demerger rationale
Demerger rationale Demerger to deliver significant operational benefits, accelerate growth and unlock value for shareholders – Separation of AMP Capital’s private markets businesses (Private Markets) AMP shareholders Overview from AMP Limited to create operational independence, simplify structures a
Slide 31: Demerger
Demerger Progress on track, roadmap to operational separation and demerger Demerger program in place and progressing well – Appointment of new Group CEO commenced August 2021 – Full program governance, workplan and resourcing in place – Timeline for operational separation and full demerger set – Key
Slide 32: Demerger key dates
Demerger key dates Timeline and key dates to demerger completion Interim Chair appointed to AMP Shawn Johnson Alexis George Transfer of MAG front Transfer of GEFI to AGM and Capital Private commences as AMP commences as office from AMP Capital Macquarie Asset Shareholder Markets Capital CEO AMP CEO
Slide 33: 1H 21 key takeaways
1H 21 key takeaways
Slide 34: 1H 21 key takeaways
1H 21 key takeaways Achievements — Positive earnings performance in 1H 21 — Strong capital and liquidity positions, delivery of on-market share buy-back — Delivery of key elements of transformation — Client remediation fully provisioned, costs within 6% of original estimates Priorities — Progress si
Slide 35: Appendix
Appendix
Slide 36: 1H 21 highlights
1H 21 highlights Performance Transformation delivery Demerger Strong 1H 21 NPAT (underlying) of A$181m up 1H 21 cost reduction initiatives tracking to Portfolio review concluded with decision to pursue 57% from A$115m in 1H 20 target; cumulative cost savings of ~A$169m demerger of AMP Capital delive
Slide 37: 1H 21 sustainability update and commitments
1H 21 sustainability update and commitments COVID-19 response Climate change — Our customers: Approximately 11% of AMP Bank customers availed of the — Published our climate position statement and action plan on climate in 1H 21 COVID-19 repayment pause. As at 1H 21, all of these customers have reaff
Slide 38: Capital position
Capital position Strong surplus capital A$452m above requirements at 30 June 2021 A$m 1H 21 2H 20 1H 20 % 1H 21/1H 20 Total capital resources 6,332 6,413 7,137 (11.1) Total corporate subordinated debt (876) (876) (876) - Total corporate senior debt (1,254) (1,254) (1,254) - Shareholder equity 4,202
Slide 39: AMP Australia – wealth management
AMP Australia – wealth management Key performance measures 1H 21 2H 20 1H 20 % 1H 21/1H 20 AUM based revenue (A$m)1 447 437 470 (4.9) Advice revenue (A$m) 23 52 63 (63.5) Other revenue (A$m) 18 20 20 (10.0) Variable costs (A$m) (192) (196) (223) 13.9 Controllable costs (A$m) (233) (249) (246) 5.3 NP
Slide 40: AMP Australia – wealth management
AMP Australia - wealth management AWM AUM A$131.2b by asset class North AUM (A$b) EFA Aligned/Direct Total 57.0 60 15.0% 51.6 47.6 CAGR Cash and fixed interest 28% 50 37.9 Australian equities 31% 40 34.9 14.0% 45 International equities 30% 38.9 41.5 CAGR 30 Property 6% 30.9 Other 5% 20 28.5 10 19.2%
Slide 41: Simplifying our superannuation offering
Simplifying our superannuation offering Multi-stage renovation of AMP’s product suite to simplify the business, enhance customer outcomes and reduce risk 2018 2020 2021 Through to FY 22 MySuper repricing Separation MasterTrust simplification Future initiatives (complete) (complete) (in progress) — M
Slide 42: AMP Australia – AMP Bank
AMP Australia – AMP Bank Key performance measures 1H 21 2H 20 1H 20 % 1H 21/1H 20 Net interest income (A$m) 204 195 196 4.1 Fee and other income (A$m) 5 3 7 (28.6) Variable costs (A$m) (30) (40) (78) 61.5 Controllable costs (A$m) (53) (60) (53) - NPAT (A$m) 88 69 50 76.0 Residential mortgage book (A
Slide 43: AMP Australia – AMP Bank
AMP Australia – AMP Bank A well-capitalised bank delivering return on capital ahead of industry peers Return on capital (%) Common Equity Tier 1 (%) 20 15 Regional peers avg.1 Regional peers avg.1 15 15.8 11.8 14.1 10 11.6 13.4 10.9 10.7 10 12.7 9.7 9.1 5 5 0 0 1H 19 2H 19 1H 20 2H 20 1H 21 FY 17 FY
Slide 44: AMP Australia – AMP Bank
AMP Australia – AMP Bank A low-cost bank with arrears tracking in line with industry AMP Bank has a leading cost to income ratio versus its peer group1 AMP Bank mortgage arrears moving largely in line with industry on 90+ day AMP Bank 31.7% 25 AMP Bank 90+ days arrears rank Total competitors include
Slide 45: New Zealand – wealth management
New Zealand – wealth management Key performance measures 1H 21 2H 20 1H 20 % 1H 21/1H 20 Total revenue (A$m) 76 75 76 - Controllable costs (A$m) (17) (18) (19) 10.5 NPAT (A$m)1 20 18 18 11.1 Average AUM (A$b)2 12.5 12.1 11.5 8.1 Total net cashflows (A$m) (249) (77) 20 n/a AUM based revenue to averag
Slide 46: New Zealand Wealth Management
New Zealand Wealth Management The 2nd largest non-bank provider of KiwiSaver1 with A$6.2b in AUM 13.5% compound growth in KiwiSaver Non-default 13.5% CAGR A$m Default Non-default 6 5.4 5.1 5 4.7 Bank – 54.7% 3.8 4 3.6 Non-bank – 37.3% 3.2 AMP - 8.0% 3 2.7 2 1.0 1.0 1.0 1.0 1.0 0.9 0.8 1 0 2015 2016
Slide 47: AMP Capital
AMP Capital Key performance measures 1H 21 2H 20 1H 20 % 1H 21/1H 20 AUM based management fees (A$m) 275 277 287 (4.2) Non-AUM based management fees (A$m) 44 34 62 (29.0) Performance and transaction fees (A$m) 8 13 38 (78.9) Seed and sponsor gross (A$m) 7 22 (16) n/a Controllable costs (A$m) (252) (
Slide 48: Private Markets - Overview
Private Markets - Overview Over A$50b invested across infrastructure and real estate strategies with proven track record Infrastructure Equity Real Estate Infrastructure Debt A$19.0b A$24.7b A$6.9b Invested AUM Invested AUM Invested AUM 54.8 54.5 49.7 50.6 Top 7 Top 8 40.9 Top 6 global infrastructur
Slide 49: Private Markets - Overview
Private Markets - Overview Over 450 direct institutional clients investing in >160 high quality assets supported by employees across 11 countries1 North America and EMEA Asia Australia and New Zealand Infrastructure Debt Infrastructure Debt 19% 22% 32% 28% 31% Infrastructure Equity Infrastructure Eq
Slide 50: Recent growth underpinned by strength in private markets
Recent growth underpinned by strength in private markets Private Markets1 Infrastructure Equity AUM A$b Invested Undrawn 10.6% CAGR AUM A$b Invested Undrawn 17.7% CAGR 25 70 7.5 2.7 6.1 1.8 1.7 60 4.4 5.2 20 1.0 50 4.2 54.8 54.5 19.3 18.9 19.0 2.6 49.7 50.6 15 0.7 16.5 40 1.2 1.0 0.9 40.9 0.3 12.8 3
Slide 51: Investing to build the new AMP
Investing to build the new AMP Business units Investment spend AMP Australia 2H 19 – AMP Capital NZWM 1H21 actuals 1H21 FY 21 2H 19 – FY 22 Notes AWM AMP Bank actuals Investing – Digitally enabled – Bank core system and – Operating platform – Further acquisition $19m A$165m A$40-60m A$250-350m – Inc
Slide 52: 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 53: 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 ‘non- The securities mentioned herein have not been, and will not be, registered under the U.S. Securities IFRS financial information’ under ASIC R
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