Amp Limited · ASX:AMP
Amp — Non-Deal Roadshow (September 2009)
38 slides from Amp's roadshow presentation, Sep 10, 2009
Slide 1: ASX Announcement: Investor Roadshow Materials
ASX Announcement 10 September 2009 For personal use only Manager Manager Company Announcements Office Market Information Services Section Australian Stock Exchange New Zealand Stock Exchange Level 4, 20 Bridge Street Level 2, NZX Centre, 11 Cable Street Sydney NSW 2000 Wellington New Zealand Announc
Slide 2: Investor discussion pack
For personal use only Investor discussion pack Craig Dunn Craig Meller Chief Executive Officer Managing Director, AMP Financial Services Paul Leaming Howard Marks Chief Financial Officer Director, Investor Relations September 2009
Slide 3: AMP – well positioned in attractive markets
AMP – well positioned in attractive markets Australasian wealth management group, with flexible, robust, For personal use only scaleable business model Focused on attractive markets in which it holds strong competitive positions Diverse earnings streams, proving resilient in difficult market c
Slide 4: Outline
Outline Market and regulatory environment For personal use only AMP today Business operations AMP Financial Services AMP Capital Investors 3
Slide 5: Market and regulatory environment
For personal use only Market and regulatory environment 4
Slide 6: Highly supportive superannuation environment
Highly supportive superannuation environment Australia world’s 5th largest and fastest growing pension For personal use only market, underpinned by government mandate All employed Australians must contribute 9% of their salary to superannuation (subject to tax concessions) Superannuation contr
Slide 7: Growth in Australian retail superannuation market over years
Growth in Australian retail superannuation market over 10 years For personal use only March 1999 retail super market March 2009 retail super market Total A$79 billion Total A$196 billion Other AMP Other AMP 17% 18% 17% 18% AWM 4% AXA 6% AWM 4% AXA 6% NAB 16% BT/WBC/SGB 14% NAB BT/WBC/SGB 16% 10% ING
Slide 8: Market outlook – short term
Market outlook – short term Continued market volatility through 2009 For personal use only Subdued investor sentiment Flight to safety and quality ‘Deleveraging’ of households Returns favouring liquid investors Rapidly changing competitive environment, with a number of regulatory reviews
Slide 9: Ripoll Inquiry
Ripoll Inquiry Investigating issues associated with the collapse of Storm For personal use only Financial, Opes Prime and MFS Due to report by late November 2009 Terms of reference Role of financial advisers General regulatory environment for these products and services Role commission a
Slide 10: Henry Review
Henry Review Broad review of the Australian taxation system For personal use only Due to report to the Treasurer in December 2009 Interim report issued in May 2009, with a number of recommendations included as part of the federal budget Terms of reference Look at appropriate balance of tax
Slide 11: Cooper Review
Cooper Review Overarching aim to maximise retirement incomes by For personal use only improving the efficiency of the superannuation system and lowering costs and fees A three-phased approach announced (governance, operation and efficiency, and structure) with interim reports to be issued; first
Slide 12: Market outlook – medium to long term
Market outlook – medium to long term Longer term growth outlook for wealth management sectors in For personal use only Australia, New Zealand and selected Asian markets remains strong, underpinned by ageing demographics bi-partisan party support for mandatory superannuation regime in Australia
Slide 13: AMP today
For personal use only AMP today 12
Slide 14: AMP today
AMP today AMP is a 160-year-old wealth management company operating For personal use only in Australia and New Zealand, with selected investment management activities in Asia Leading superannuation provider in the Australian market* One of the region’s largest investment managers with $90bn in
Slide 15: AMP’s structure
AMP’s structure AMP For personal use only AMP Financial Services AMP Capital Investors Primarily an Australian and New Zealand asset manager, investing across various Contemporary Wealth Management asset classes. AUM sourced from internal Unit linked retail and corporate superannuation and and exter
Slide 16: AMP’s key performance measures
For personal use only AMP’s key performance measures Short term Longer term Underlying return on equity Over-arching goal to deliver top Underlying profit quartile TSR performance to shareholders Growth measures: Aim to be in top 25% of the Net cashflows in AMP Financial top 50 listed Au
Slide 17: AMP’s competitive advantages
For personal use only AMP’s competitive advantages Products & Cost Asset Brand Distribution Packaging platforms efficiency management Large Large, Pre-eminent footprints in scaleable Cost to Broadly Growing brand in planner and contemporary income ratio based AUM AUM retirement corporate platform 42
Slide 18: Business line contribution to 1H earnings
Business line contribution to 1H 09 earnings For personal use only In-force annual premium A$111m and AUM A$4bn In-force annual AUM A$18bn premium A$713m AFS NZ A$23m (6%) AFS Mature AUM A$90bn AFS Contemporary A$72m (21%) Wealth Protection A$83m (24%) AFS Contemporary Wealth Management A$129m (37%)
Slide 19: Five-year summary of earnings by business line
Five-year summary of earnings by business line For personal use only AFS Contemporary Wealth Management AMP Capital Investors operating AFS Mature operating earnings operating earnings earnings 92 95 89 145 142 83 78 78 129 72 116 55 89 42 43 A$m A$m A$m 1H 05 1H 06 1H 07 1H 08 1H 09 1H 05 1H 06 1H
Slide 20: Improving quality of earnings, driven by contemporary businesses
Improving quality of earnings, driven by contemporary businesses For personal use only 1H 09 79% 21% A$350m 1H 08 78% 22% A$412m 1H 07 76% 24% A$401m 1H 06 73% 27% A$345m 1H 05 72% 28% A$292m 0 $100m $200m $300m $400m $500m Contemporary businesses Closed business AMP Capital Investors, AFS Contempor
Slide 21: Total AMP assets under management
For personal use only Total AMP assets under management AMPCI managed (43%) Multi-manager (FDF) (27%) 44 CWM Externally managed (26%) AMP Banking (4%) 34 AMPCI external AMPCI managed (93%) Multi-manager (FDF)¹ (7%) 18 Mature AMPCI managed (100%) 4 NZ AMPCI managed (75%) Externally managed (25%) 4 Gr
Slide 22: CWM – platform and asset manager split
CWM – platform and asset manager split For personal use only 52% of AUM (43% of cash inflows) sit on AMP’s platform and are managed by AMPCI 31% of AUM (24% of cash inflows) sit on AMP’s platform and are managed by external fund managers 4% of AUM (18% of cash inflows) sit on AMP’s platform and are
Slide 23: CWM – platform and asset manager split
CWM – platform and asset manager split For personal use only 4% AMP Banking 13% Asgard and other 26% platforms AMPCI Retail managed super, 5% AMPCI pension managed 70% and FLI AMP 16% Multi- platform manager (FLS + 57% (FDF)1 External FLI) 11% fund 11% External manager AFS fund contemporary manager
Slide 24: Business operations
For personal use only Business operations 23
Slide 25: AMP Financial Services and AMP Capital Investors
AMP Financial Services AMP Capital Investors AMP Financial Services (AFS) provides AMP Capital Investors (AMPCI) For personal use only financial planning and advice to is a significant investment manager customers in Australia and NZ, in the Asia Pacific region primarily through network of 2,000
Slide 26: AMP Financial Services
For personal use only AMP Financial Services 25
Slide 27: AMP Financial Services is a scaleable, flexible leading wealth management business
AMP Financial Services is a scaleable, flexible leading wealth management business For personal use only AMP Financial Services is a scaleable wealth management business, with market-leading positions in superannuation in Australia and New Zealand Strong competitive distribution advantage, with
Slide 28: AFS holds leading market positions in Australia
For personal use only AFS holds leading market positions in Australia Mar 2009 Mar 2008 Mar 2004 Market share - Australia Total Market Market Total Market Market Total Market Market market size position share market position share market position share A$b (rank) % size A$b (rank) % size A$b (rank)
Slide 29: Employer contributions represent a significant proportion of AFS superannuation inflows
Employer contributions represent a significant proportion of AFS superannuation inflows For personal use only Contemporary Wealth Management cash inflows (A$m) 1H 09 1H 08 % change Member contributions 600 830 -28% Employer contributions 1675 1715 -2% Total contributions 2275 2545 -11% Transfers and
Slide 30: Superannuation market by channel (June 2007)
Superannuation market by channel (June 2007) (By AUM) For personal use only Accountants / solicitors / stockbrokers / other 18% Financial planners 51% Employers 31% Supply-side constrained market Unmet demand for financial advice AFS has strong positions in two largest distribution channels So
Slide 31: AMP has one of the largest networks of financial planners in Australia by AUM
AMP has one of the largest networks of financial planners in Australia by AUM Non-CFP For personal use only 1,800 1658 CFP 1587 1,600 1,400 1327 1243 1151 1,200 1056 1050 1,000 1373 798 800 969 900 600 981 400 602 445 200 358 214 251 69 0 AMP ANZ/ING AXA CBA NAB WBC Average age of an AMPFP planner
Slide 32: AFS’s aligned planner channel has scale and is highly productive
AFS’s aligned planner channel has scale and is highly productive 50 For personal use only FUA per Planner > Industry Average 2.2m $2 = ner AMP (25.3) lan e rP 40 A/P e FU g era Macquarie Av (82.4) stry du CBA (25.6) In AUM ($bn) 30 ANZ/ING (16.9) ABN AMRO WBC (25.6) (50.7) AXA (18.9) 20 NAB/MLC (18.
Slide 33: Corporate superannuation market share (by AUM)
Corporate superannuation market share (by AUM) For personal use only 25% 20.2% 19.6% 20% 16.3% 13.7% 15% 15% 13.4% 12.9% 12.4% 10% 6.9% 7.0% 6.0% 6.1% 5% 0% AMP ING Mercer MLC/Plum BT Colonial Mar-09 Mar-08 Source: Plan for Life Masterfunds report March 2009 32
Slide 34: AMP Capital Investors
For personal use only AMP Capital Investors 33
Slide 35: AMP Capital Investors is a leading specialist investment manager
AMP Capital Investors is a leading specialist investment manager For personal use only AMP Capital Investors is a significant investment manager in the Asia Pacific region with A$90bn* in assets under management Specialist investment manager focused on Asia Pacific equities, credit, property, in
Slide 36: AMPCI – diversified asset management base
For personal use only AMPCI – diversified asset management base Property Australian equities 18% Direct investment 23% 1% Infrastructure 5% International equities Fixed interest 19% 33% Based on assets under management at 30 June 2009 35
Slide 37: AMPCI – AUM by source
For personal use only AMPCI – AUM by source Asia (including Middle East Rest of the world 5% 1% New Zealand 11% Australia 83% 36
Slide 38: Market share of Australian asset managers
For personal use only Market share of Australian asset managers 9% 8.0% 8% 7% 6.6% 6.0% 5.8% 6% 5.5% 5% 4.9% 4.9% 4.6% 4.5% 4% 3% 2.6% 2% 1% 0% Colonial AMPCI Macquarie Future QIC State street ING MLC Vanguard BT Fund Investment 37 Source: Rainmaker Roundup, March quarter 2009