Slide 1: 2020 Full Year Results
2020 FULL YEAR Francesco De Ferrari Chief Executive Officer RE S U LTS James Georgeson Chief Financial Officer
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Slide 4: 2020 highlights
2020 highlights Section 1 AMP FY 20 results 4
Slide 5: Supporting our clients, people and community
ampxé Supporting our clients, people and community We've invested to support and prioritise the health and wellbeing of our key stakeholders Our clients Paused home loan repayments for ~11% of AMP. Bank mortgage clients - >80% have restarted or are in the process of restarting repayments Paid A$1.8b
Slide 6: AMP's strategic portfolio review
AMP’s strategic portfolio review Focus on maximising shareholder value Portfolio review Status update Review initiated in 2H 20 following increased interest in assets and businesses of AMP group Board maintains commitment to AMP’s transformation strategy, confident in the delivery of long-term value
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Slide 8: FY profit summary
FY 20 profit summary Australian wealth management 110 47 63 195 (44) AMP Bank ng 69 50 141 (16) AMP Capital! 139 64 75 204 (32) New Zealand wealth management 36 18 18 44 (18) Group office (109) (82) (87) (145) 25 NPAT (underlying)? 295 146 149 439 (33) Items reported below NPAT (underlying) (185) (1
Slide 9: A$110m A$119m
– – – A$110m – – – – – A$119m – – Section 2 AMP FY 20 results 9
Slide 10: Section 2 AMP FY 20 results
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Slide 11: Section 2 AMP FY 20 results
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Slide 12: AMP
– – – – – Section 2 AMP FY 20 results 12
Slide 13: Items reported below underlying profit
Items reported below underlying profit Below the line spend primarily reflects known costs to drive transformation strategy FY 20 Gain on sale of AMP Life 299 ] 298 - n/a AMP Life separation costs (208) - (208) (183) (14) Client remediation and related costs (73) (54) (19) (153) 52 Risk management,
Slide 14: Client remediation
Client remediation Industry leading remediation program is 80% complete at FY 20; on-track for completion mid-2021 FY 20 Closing provision balance at 1H 20 603 Less payments made during 2H 20! (77) Additional lost earnings recognised during 2H 20 14 Other one-off remediation items identified in 2H 2
Slide 15: Capital position
Capital position Strong capital position; A$521m capital surplus above requirements A$m capital surplus (48) MUTB buyback 666 (44) Pro- epee forma (lopes) capital surplus 146 NPAT. (underlying) (ud) 22 Below the (106) Market line costs Net impacts business usage (50) Eligible subordinated bond derec
Slide 16: Capital position
Capital position Strong surplus capital A$521m above requirements at 31 December 2020 FY 20 Total capital resources 6,413 7,137 7,049 (9.0) Total corporate subordinated debt (876) (876) (1,151) 23.9 Total corporate senior debt (1,254) (1,254) (988) (26.9) Shareholder equity 4,283 5,007 4,910 (12.8)
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Slide 18: Reinventing AMP
Reinventing AMP Refocusing our portfolio to higher growth, higher return businesses Australian Wealth AMP Bank AMP Capital Management Technology enabled Leading global asset Simpler client-led wealth challenger bank that manager expanding private manager with tailored integrates with clients’ market
Slide 19: Sequencing our transformation delivery
Sequencing our transformation delivery Second year of evolving transformation strategy; demonstrating execution momentum Simplify Complete sale of AMP Life Reshape advice network Simplify super Innovate digital and direct propositions Invest in bank platform, digitisation and automation Invest to gr
Slide 20: Progress update towards reinventing AMP
Progress update towards reinventing AMP Delivered 90% of 2020 market commitments while navigating significant market disruption Simplify portfolio Reinvent wealth management in Australia Grow asset management Create a simpler, leaner business Complete sale of AMP Life by 30 June Update on New Zealan
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Slide 22: Reinventing advice; a more productive, compliant business
Reinventing advice; a more productive, compliant business Delivery to date 2021+ ambition - Reshape well-advanced, ~75% complete; practice exits - Complete reshape program in 2021, establishing a delivered to plan commercially sustainable business model - Consolidated and strengthened advice practic
Slide 23: Building the best-in-class superannuation business
Building the best-in-class superannuation business Delivery to date 2021+ ambition Simplify products and systems Uplift governance and processes Improve client outcomes — Simplified through AMP Life successor fund transfer phase - MasterTrust products reduced from ~70 to 11 - Product administration
Slide 24: Growing successful platform
Growing successful platform Delivery to date 2021+ ambition - Continued positive net cash inflows; A$3.7b in FY 20, including - Deliver double digit AUM growth on North platform by; A$1.1b of inflows from External Financial Advisers (EFA) — Growing EFA cashflows by leveraging existing — AUM on North
Slide 25: Maintaining growth momentum in AMP Bank
Maintaining growth momentum in AMP Bank Delivery to date 2021+ ambition Enhance technology and automation capabilities Expand direct client base - Completed core technology renovation - on time and under budget - increasing efficiency and opportunity for growth — Upgraded automated credit decisionin
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Slide 27: Growing New Zealand wealth management
Growing New Zealand wealth management Delivery to date 2021+ ambition Simplify business Deliver improved client experience Leverage scalability - Automation of client-facing technology and processes, including complete repatriation of all offshore processing - Simplified distrioution model with 66%!
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Slide 29: Building best global private markets platform
Building best global private markets platform Delivery to date 2021+ ambition — Diversified global infrastructure debt and infrastructure equity funds - Continue to deploy committed capital; A$4.1b of uncalled provided resilient investment performance through COVID-19 committed capital at FY 20 — A§
Slide 30: Refocusing public markets to support strategic partners
Refocusing public markets to support strategic partners Delivery to date 2021+ ambition - Completed AMP Life separation - Deliver transfer of MAG to AMP Australia n - Commenced operating platform transformation, - Transform operating model to meet future client Realign MAG to . synchronised with sup
Slide 31: Create a simpler, leaner business
Create a simpler, leaner business
Slide 32: Creating a simpler, leaner business
Creating a simpler, leaner business Delivery to date 2021+ ambition Establish end-to-end businesses with discrete P&Ls Reshape cost base, delivering gross savings by FY 22 Strengthen risk management, controls and governance - Streamlined organisation to three operating business units; AMP Australia,
Slide 33: Driving an inclusive and high performing culture
Driving an inclusive and high performing culture Delivery to date 2021+ ambition Improve inclusion and diversity to drive performance Strengthen accountability across company Create a high performance culture Invested to build inclusive leadership capability across all levels in AMP; executive team
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Slide 35: Reinventing AMP; our 2021 focus
Reinventing AMP; our 2021 focus 2021 market deliverables enabling the next phase of AMP’s strategic transformation Reinvent wealth management in Australia Grow New Zealand business Expand asset management footprint in private markets Create a simpler, leaner business Complete advice reshape program
Slide 36: FY closing summary
FY 20 closing summary Strategic execution momentum despite challenging environment Portfolio review Constructive engagement with Ares in relation to AMP Capital continues; review has confirmed transformation strategy for the AMP Australia (Australian wealth management and AMP Bank) and New Zealand w
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Slide 38: FY guidance
FY 21 guidance Business performance Controllable costs Australian wealth management — Subject fo further regulatory impacts and management initiatives, margins expected to decrease 8bps on FY 20 reflecting pricing and simplification changes - FY 21 earnings for Australian wealth management are expec
Slide 39: AMP Australia: Australian wealth management
AMP Australia: Australian wealth management FY 20 Focus on product AUM based revenue (A$m)! 907 1,070 (15.2) simplification and Advice revenue (A$m) 15 145 (20.7) support ng cl ients Other revenue (A$m) 40 47 (4.9) - Ret oletiity Variable costs (A$m) (419) (489) 143 Controllable costs (A$m) (495) (5
Slide 40: AMP Australia: Australian wealth management
AMP Australia: Australian wealth management AWM AUM A$124.lb by asset class North AUM (A$b) 20.0% CAGR q “ 50 @ Cash and fixed interest 30% 7 @ Australian equities 30% 40 “ International equities 29% 30 349 379 Property 6% 20 a @ Other 5% 10 0 FY 15 FY 16 FYI7 FY 18 FYI9 FY 20 AUM market share (%)!
Slide 41: Simplifying our superannuation offering
Simplifying our superannuation offering A multi-stage renovation of AMP’s product suite to simplify the business, enhance client outcomes and reduce risk 2018 MySuper Repricing (complete) \ 2020 Separation (complete) \ Mid-2021 MasterTrust simplification \ Through to FY 22 Future initiatives 1 - MyS
Slide 42: AMP Australia: AMP Bank
AMP Australia: AMP Bank Strong performance in deposits; well- positioned for growth following technology upgrade Net interest income (A$m) 391 387 1.0 Fee and other income (A$m) 10 2i (52.4) Variable costs (A$m) (ig) (93) (26.9) Controllable costs (A$m) (N13) qa) 09 NPAT (A$m) ng 141 (15.6) Resident
Slide 43: peers avg. 1
peers avg.1 Regional peers avg.1 2
Slide 44: AMP Australia: AMP Bank
AMP Australia: AMP Bank A low-cost bank with arrears tracking in line with industry AMP Bank has a leading cost-to-income ratio versus its peer group AMP. bank Peer! Peer2! Peer3! AMP Bank mortgage arrears moving largely in line with industry on 90+ day AMP 90+ days arrears rank 20 20 9 v 18 Total 9
Slide 45: AMP Capital
AMP Capital FY 20 Challenging year Total revenue (A$m) 77 839 (14.5) with market volatility Performance and transaction fees (A$m) 51 84 (39.3) and internal change. Controllable costs (A$m) (522) (527) 09 Strong support for : y private markets NPAT (A$m) 139 204 G19) raisings Average AUM (A$b)? 1938
Slide 46: Transition to closed-end funds and earnings impact
Transition to closed-end funds and earnings impact Broadening our suite of closed-end offerings Existing closed-end funds Infrastructure equi (SITE / GIF platform) Real estate inipr ptiorn) Private market adjacencies = Successor funds to the existing flagship GIF and IDF platforms expected, as well
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Slide 48: Current asset management market dynamics
Current asset management market dynamics The evolving macro picture The opportunity Significant economic contraction in 2020, expectations for improvement in 2021 Global growth of 5.5% expected in 2021 with vaccine rollout supporting activity, up from the contraction of -3.5% in 2020! Ongoing policy
Slide 49: New Zealand wealth management
New Zealand wealth management FY 20 Agile and Total revenue (A$m) 151 159 (5.0) well-positioned Controllable costs (A$m) @7) (34) (8.8) business following NPAT (A$m)! 36 a (8 localisation of Average AUM (A$b)* Wg 12.0 (0.7) operations and simplification of Total net cashflows (A$m) (67) (433) 868 cl
Slide 50: New Zealand wealth management
New Zealand wealth management One of the largest non-bank providers of KiwiSaver! with A$éb in AUM 10.5% compound growth in KiwiSaver 10.5% CAGR 70 60 Bank 63.9% 50 57 @ AMP 8.6% 6 40 = 46 49 @ Non-bonk 27.5% 2 30 ; LD 20 10 oo 2015 2016 2017 2018 2019 2020 The leading provider of corporate super wi
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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 Investors should be aware that certain financial measures included in this presentation ore ‘nor+lFRS financial information’ under ASIC Regulatory Guide 230: ‘Disclosing non-IFRS financial information’ published by ASIC and also ‘non-GAAP financial measure
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