Slide 1: 2015 full year results
A\ 18 February 2016 AMP 2015 tull year results Craig Meller, Chief Executive Officer Gordon Lefevre, Chief Financial Officer
Slide 2: Executive summary
Executive summary Financial performance – FY 15 net profit of A$972m (FY 14: A$884m) and underlying profit of A$1,120m (FY 14: A$1,045m) – 7% lift in underlying profit with continued growth in Australian wealth management, AMP Capital, AMP Bank and New Zealand – Business recovery in wealth protectio
Slide 3: FY 15 profit summary
FY 15 profit summary A$m FY 15 FY 14 % Australian wealth management 410 374 9.6 AMP Capital¹ 138 115 20.0 Australian wealth protection 185 188 (1.6) AMP Bank 104 91 14.3 New Zealand financial services 120 110 9.1 Australian mature 158 174 (9.2) BU operating earnings 1,115 1,052 6.0 Group Office cost
Slide 4: FY 15 movement in underlying profit
FY 15 movement in underlying profit A$m Growth momentum continues in 10 challenging second- 13 1 18 23 half markets (16) 36 (3) (7) 1,120 1,045 FY 14 Australian AMP Capital Australian AMP Bank New Zealand Australian Group office Underlying Interest FY 15 underlying wealth operating wealth operating
Slide 5: Business unit results
Business unit results Section 2
Slide 6: Wealth management – overview
Wealth management – overview Underlying earnings Key performance measures FY 15 FY 14 growth reflects Operating earnings (A$m) 410 374 strong AUM growth and good cost Controllable costs (A$m) (498) (512) control Total retail and corporate super net cashflows on AMP platforms (A$m) 3,784 3,616 Total
Slide 7: Wealth management – net cashflows
Wealth management – net cashflows Net cashflows summary (A$m) FY 15 FY 14 Resilient cashflows in more volatile North¹ 4,494 5,530 markets AMP Flexible Super¹ 1,451 2,182 Other products and platforms¹ (2,764) (4,316) Total retail on AMP platforms 3,181 3,396 SignatureSuper and Flexible Super (employe
Slide 8: AMP Capital – overview
AMP Capital – overview Strong uplift in Key performance measures FY 15 FY 14 earnings reflecting Operating earnings (A$m) 138 115 AUM growth and performance fees Fee income (A$m) 583 512 Controllable costs (A$m) (362) (331) Cost to income ratio 61.1% 63.0% Total external net cashflows (A$m) 4,434 3,
Slide 9: AMP Capital – net cashflows and investment performance
AMP Capital – net cashflows and investment performance Strong growth External net cashflows (A$m) FY 15 FY 14 Net cashflows (A$m) FY 15 FY 14 momentum China 1,688 535 Internal (3,168) (3,859) reflecting continued delivery against Japan 239 1,530 strategy External 4,434 3,723 Domestic and other inter
Slide 10: Wealth protection – overview
Wealth protection – overview Performance Key performance measures FY 15 2H 15 1H 15 FY 14 2H 14 impacted by Profit margins (A$m) 196 100 96 187 99 volatility in second Capitalised (losses) / reversals (A$m) - (1) 1 2 2 half; focus on Experience profits / (losses) (A$m) (11) (13) 2 (1) (4) business r
Slide 11: Wealth protection – improvement plan update
Wealth protection – improvement plan update Business recovery FY 15 progress and key deliverables Guidance remains focused on Business recovery remains focused on three core – FY 16 API growth is expected to remain subdued while initiatives: the wealth protection business continues to target buildin
Slide 12: AMP Bank – overview
AMP Bank – overview Strong earnings Key performance measures FY 15 FY 14 momentum Operating profit (A$m) 104 91 continues Controllable costs (A$m) (66) (56) Cost to income ratio 30.6% 30.3% Net interest margin 1.59% 1.41% Residential mortgage book (A$m) 14,631 13,973 Deposits (A$m) 9,618 9,244 Retur
Slide 13: New Zealand and Mature – key performance measures
New Zealand and Mature – key performance measures Strong NZ New Zealand FY 15 FY 14 Mature FY 15 FY 14 performance reflects Profit margins (A$m) 98 88 Operating earnings (A$m) 158 174 good experience profits and Transitional tax relief (A$m)¹ 9 19 AUM (A$b) 21.9 22.3 disciplined cost Experience prof
Slide 14: Financial overview
Financial overview Section 3
Slide 15: Financial overview – key points on P&L
Financial overview – key points on P&L A$m FY 15 FY 14 % Change Underlying profit 1,120 1,045 7.2 Other items (3) 7 AXA integration costs - (20) Business efficiency program costs (66) (100) Amortisation of AXA acquired intangible assets¹ (80) (89) Profit before market adjustments and accounting 971
Slide 16: Financial overview – balance sheet and regulatory capital
Financial overview – balance sheet and regulatory capital A$m FY 15 FY 14 % Change Strong balance Shareholder equity 8,623 8,346 3.3 sheet with Total corporate subordinated debt¹ 1,551 1,008 53.9 regulatory Total corporate senior debt¹ 250 450 (44.4) capital surplus above minimum Total capital resou
Slide 17: Financial overview – dividend
Financial overview – dividend Increase in dividend – Final 2015 dividend increased to 14 cents a share (from 13.5 cents a share final 2014 dividend), while franking increased to 90% (from 80%) reflects underlying – Full year 2015 dividend 28 cents a share, up 8% on FY 14, representing full year payo
Slide 18: Financial overview – maintaining cost control
Financial overview – maintaining cost control A$m Benefits from A$m business efficiency 3 program offset 12 underlying cost growth and increased 10 investments - 9 1,329 1,315 10 1,304 (30) FY 14 controllable Business efficiency AMP Capital cost AMP Bank cost FY 15 controllable AMP Capital Currency
Slide 19: Financial overview – business efficiency program
Financial overview – business efficiency program A$m Pre-tax 200 Efficiency program 200 175 benefits on track to 150 39 150 deliver A$200m pre- 125 tax run rate savings 100 by end 2016 33 75 60 138 50 1 17 69 25 18 2 19 0 (27) -25 (56) -50 (94) -75 (143) -100 -125 -150 FY 13 FY 14 FY 15 FY 16 actual
Slide 20: Financial overview – business efficiency program
Financial overview – business efficiency program Core initiatives Achievements to date FY 16 priorities largely completed Streamlined organisational structure Ongoing organisational review with final benefits to Moved to efficient, customer-focused operating model Continue to review business-wide op
Slide 21: Strategy update
Strategy update Section 4
Slide 22: Growth strategy on track
Growth strategy on track Consistent Strategic priorities execution of 1. Prioritise investment in A$2.6tr¹ Australian wealth management market by building on leading strategy delivering market positions to capture growth as superannuation industry doubles in size by 2026² strong platform for 2. Tran
Slide 23: Creating a contemporary, customer-centric business
Creating a contemporary, customer-centric business Key priorities Progress to date 2016 focus and initiatives Build a customer goals- − Customer testing built conviction in organisation-wide goals-based approach − Solutions design underway for all priority oriented enterprise − Four priority goals i
Slide 24: Investing selectively in international growth
Investing selectively in international growth Key priorities Progress to date 2016 focus and initiatives Build partnership with China Life AMP Asset Management (CLAMP)¹ − Deepen partnership with China national champions − Now managing RMB 70b AUM (A$14.8b) for Chinese retail and institutional invest
Slide 25: Summary
Summary Continued growth – Continued momentum in Australian wealth management, AMP Capital, AMP Bank and New Zealand momentum and – Wealth protection business recovery continues – initiatives designed to ensure long-term sustainability resilience in volatile – Strategy execution providing early indi
Slide 26: Appendix
Appendix Section 5
Slide 27: Guidance summary
Guidance summary Costs Wealth protection – FY 16 controllable costs are expected to grow at approx 3.5% incorporating: – FY 16 API growth is expected to remain subdued while the wealth protection − 3% underlying cost growth business continues to target actions delivering value over volume – Best est
Slide 28: Regulatory environment
Regulatory environment Development Impacts / Issues AMP position Future of Financial Advice reforms − Best interests duty − Support FOFA reforms − Opt-in statements for customers − Fee disclosure statements Life insurance remuneration reform − Significant changes to adviser life insurance − Aligned
Slide 29: Important disclaimer
Important disclaimer Forward-looking statements in this presentation are based on AMP’s current views and assumptions and involve known and unknown risks and uncertainties, many of which are beyond AMP’s control and could cause actual results, performance or events to differ materially from those ex