Slide 1: ASX Announcement: Presentation by AMP CEO Andrew Mohl
ASX Announcement 10 October 2006 Manager Company Announcements Office Australian Stock Exchange Level 4, 20 Bridge Street Sydney NSW 2000 Announcement No: 55/06 Manager Market Information Services Section New Zealand Stock Exchange Level 9, ASB Tower, 2 Hunter Street Wellington New Zealand Presentat
Slide 2: AMP and the evolving financial services industry
AMP and the evolving financial services industry Andrew Mohl Chief Executive Officer October 2006
Slide 3: Outline
Outline « Market overview » AMP business model = Business performance » People and culture » Capital management and shareholder returns » Outlook
Slide 4: Market overview
Market overview
Slide 5: Australian private pension market is a highly attractive market with mandated growth
Australian private pension market is a highly attractive market with mandated growth =» Compulsory superannuation framework > Contribution rate currently mandated at 9%, with coverage extending to 90% of Australian workforce* >» Recent Budget initiatives confirm superannuation is the Federal Governm
Slide 6: Australian private pension market set to triple in years and exceed all of Asia
Australian private pension market set to triple in 10 years and exceed all of Asia 2005 Total US$1,452 billion 2015 Total US$3,744 billion Other countries Australia 1.7% 36.3% South Korea 2.2% Hong Kong Mp US$527.5b 2.7% Singapore 47% Japan 52.4% Other countries 9.8% Australia 81.0% US$1,908.7b Sout
Slide 7: Growth outlook for superannuation industry and key sectors for AMP is robust
Growth outlook for superannuation industry and key sectors for AMP is robust Self-managed funds (DIY) 170,057 23.5% 15.1% Wrap 23,289 40.2% 20.1% Savings and investment 134,410 5.8% 64% Corporate funds 62,214 1.8% 2.2% industry funds 95,303 24.8% 17.8% ‘iui niin Source: DEXX&R Market Projections Rep
Slide 8: AMP holds leading market positions
AMP holds leading market positions June 2006 June 2005 Market share - Australia Total meet Market Total Market Market market position | hare % market | position | op oe % size A$b {rank} size A$Sb (rank) Funds under management ASbillion Retirement income 68.5 2 42.4 58.3 2 12.4 Unit trusts excluding
Slide 9: AMP business model
AMP business model
Slide 10: Key drivers and enablers of AMP business model
Key drivers and enablers of AMP business model Six drivers Products & Cost Asset Platforms Efficiency Management Packaging Distribution Four enablers
Slide 11: Comparative advantage of AMP in planner distribution — scale, quality and tenure
Comparative advantage of AMP in planner distribution — scale, quality and tenure Number of Australian financial planners Adviser turnover ~ June 2004 to June 2005 June 2006 1800 AMPFP turnover 14% tevo4 1853 Dealer groups surveyed 1400 1,234 Range 4% to 47% 1200 4,106 1,028 Upper quartile 23% 1000 9
Slide 12: Comparative advantage of AMP in corporate super — scale, cost efficiency and downstream benefits
Comparative advantage of AMP in corporate super — scale, cost efficiency and downstream benefits « Market leader in employer sponsored master trusts — 19.4% market share* >» SignatureSuper grown to $4.1b in 20 months = Scale and cost efficiency create shareholder value >» Sticky administration / tru
Slide 13: Business performance
Business performance
Slide 14: Highlights of 1H Group performance
Highlights of 1H 06 Group performance » Encouraging progress on all five key performance indicators >» Underlying return on equity up from 22.9% to 26.6% > AFS value of new business’ up 22%; AFS embedded value’ up 12% in 1H 06 >» Operating earnings up 15% to A$342m > Cost ratio down from 41.9% to 40
Slide 15: Growth remains robust
Growth remains robust Assets under management # Group up 15% on 1H 05 to A$110b # AMPCI up 14% on 1H 05 to A$96b # AFS up 17% on 1H 05 to A$71b Net cashflows « AFS up from A$0.9b in 1HO5 to A$2.8b # AMPCI net external cashflows A$1.1b in both 1H 05 and 1H 06 Risk premium income = Australian individu
Slide 16: AFS — net retail cashflows and industry share
AFS — net retail cashflows and industry share AMP AMP rolling 12 month net cashflows (excl CMTs), AMP ranking % of industry net cashflows and AMP cashflows as % of industry total 6,000 4 r 18% r 16% 5,000 4 b 14% 4,000 5 12% b 10% 3,000 4 b 8% 2,000 + b 6% i. 4% 1,000 4 b 2% Asm 9 +E ltd ia AL 0% Ju
Slide 17: Group cost ratio down to 40.1%
Group cost ratio down to 40.1% 600 46.5% 50 ¢ 43.9% snow iim “ 40.1% 46 500 <i ip 40 307 399 392 412 45 400 300 200 100 A$Sm 04 1H 03* 1H 04* 4H 05* 1H 06 Controllable costs sé Cast to income ratio * Some minor restatements to reflect a change in the definition of controllable costs
Slide 18: Underlying return on equity up to 26.6%
Underlying return on equity up to 26.6% and set to exceed 30% in 2007 4H 03* 1H 04 1H 05 1H 06 41H 06 modeiling full impact of 2006 capital return *Pre-demerger O~ Underlying return on equity
Slide 19: Major progress on goal to double the value of an investment in AMP
Major progress on 5 year goal to double the value of an investment in AMP from mid 2005 to mid 2010 40% change in 12 months from mid 2005 16.2 A$b Opening value — June 05 Dividends Capital return — Change in median Closing value* — median analysts’ (2H 05 + 1H 06) 1H 06 analysts’ valuation June 06 v
Slide 20: Business unit performance
Business unit performance
Slide 21: Australian contemporary wealth management — a high growth, high return business
Australian contemporary wealth management — a high growth, high return business Contemporary wealth management 1H 06 1H 05 Operating earnings A$116m A$89m + 30% Controilabie costs‘ A$175m A$i172m + 2% Cost to income ratio 48.5% 54.4% - §.9 percentage points Net cashflows A$3,309m A$1,496m + 121% Per
Slide 22: Australian contemporary wealth protection — a solid growth, high return business
Australian contemporary wealth protection — a solid growth, high return business Contemporar Z 2 Change wealth protection 1H 06 1H 05 Operating earnings A$59m A$55m +7% Controllable costs A$31m A$33m -6% Cost to income ratio 22.2% 25.1% - 2.9 percentage points Individual risk annual A$403m $363m + 1
Slide 23: Australian mature — long tail, large scale, outstanding return business
Australian mature — long tail, large scale, outstanding return business Mature Change 1H 06 | 1H 06 Operating earnings A$92m | A$83m +11% Controllable costs A$30m | A$3im ~3% Controllable costs/AUM' 0.32% | 0.33% nla Net cashflows (A$564m) | (A$614m) + 8% Persistency 87.7% | 87.6% + 0.1 percentage p
Slide 24: New Zealand — a life risk-driven, high return business
New Zealand — a life risk-driven, high return business New Zealand Change 1H 06 1H 05 Operating earnings A$23m | A$23m Steady Controllable costs A$31m | A$26m + 19% Cost to income ratio 44.4% 40.7% + 3.7 percentage points Net cashflows A$10m i (A$53m) nla Risk annual premium | | income A$79m A$77m +
Slide 25: AMP Capital Investors — a high growth, high return asset management business
AMP Capital Investors — a high growth, high return asset management business AMP Capital Investors Change 1H 06 1H 05 Operating earnings A$55m A$42m + 31% Fee income A$181m A$152m + 19% Controllable costs A$104m A$93m +12% Cost to income ratio 55.2% 58.4% - 3.2 percentage points Net external cashflo
Slide 26: AMPCI — out-performance against benchmarks across all asset classes
AMPCI — out-performance against benchmarks across all asset classes Australian AUM 9 9 90% 39% 94% 94% 91% 86% Listed assets Infrastructure Private equity Property Future Total Directions Funds i Jun-06 BB Dec-05 % indicates assets under management meeting or exceeding benchmarks
Slide 27: People and culture
People and culture
Slide 28: Developing and retaining our most valuable resource
Developing and retaining our most valuable resource * Our most valuable resource is our people = We’re building a constructive culture as it is a key long term driver of high performing companies « One of the tools AMP has been using to measure culture since 1996 is the Organisational Culture Invent
Slide 29: AMP culture — increasingly constructive
AMP culture — increasingly constructive 1996 2006 N = 3,539 N = 2,786 ACTION Ne SATISFACTION HERDS _——~CONSTRUD 2 Tye Sry tt NG 4 - Ny, ISFACTION NEENe. i oe rer omell aH F + ORIENTA _ OY now nan ne03s— ~~ neuyuy SECURITY NEEDS Source: Human Synergistics NZ Limited 4 human Copyright © 2005. All righ
Slide 30: AMP culture — more constructive than finance industry as a whole
AMP culture — more constructive than finance industry as a whole Financial services industry comparison WACHddY “—~Wotuunauig 6088 Source: Human Synergistics international Overlay = Finance industry secunity weeps Copyright © 2008. All ights reserved
Slide 31: Capital management and shareholder returns
Capital management and shareholder returns
Slide 32: Capital management strategy
Capital management strategy « Capital efficiency has been pursued by: >» leveraging the strong share market performance since early 2003 > growing the contemporary and asset management businesses that are relatively low in capital intensity > running off the more capital intensive mature life and Co
Slide 33: Three major capital initiatives to date
Three major capital initiatives to date First capital return of A$750m in June 2005 « Second capital return of A$750m in June 2006 # Third initiative - ordinary dividend payout ratio policy increased to 85% of underlying profit this year and franking rate also lifted to 85% * Possibility of a fourth
Slide 34: Dividends and capital returns since 2003
Dividends and capital returns since 2003 75+ 72 59 40 2003 2004 2005 2006* 15% franked - interim 75% franked 75% franked 85% franked 85% franked - final interim dividend @ Final dividend & Capital return *Final 2006 dividend will be advised at AMP’s full year results announcement in February 2007
Slide 35: Strong business performance and disciplined capital management driving total shareholder return
Strong business performance and disciplined capital management driving total shareholder return 140 4 a oA oot Fig Tig, Hh ie / nly 120 4 pape ca af@ ‘ if fr YY i 2 # 100 oy f g | ™ tnd rn i vA 4 ty EY of N 5 gf * @, a = uf sol ial 5 \ ji poe Fgh AMP total return mF ym 2 it . i - p bad 28% since Sep
Slide 36: Outlook
Outlook
Slide 37: Medium term positioning of AMP is attractive
Medium term positioning of AMP is attractive « Retirement savings industry set to grow by over 10% pain next decade” « AMP holds top three positions in key product segments of this market > Retail superannuation » Retirement incomes >» Corporate superannuation > Individual risk « AMP has strong comp
Slide 38: Strategic focus centred on core business
Strategic focus centred on core business # Focus on “running the business better than it’s ever been run before” to drive shareholder value is working >» Capturing scale benefits from volume and market growth >» Sustaining lowest unit cost position in the industry >» Pursuing strong growth in our co
Slide 39: Medium term outlook
Medium term outlook Sound platform for future growth >» Good industry, good operating environment, good business model Sharp focus on the basics of our business » The better we get at running the business, the more opportunities we find to improve Broad basis for growth >» Retail super, corporate su