Slide 1: ASX announcement: AMP Subordinated Notes 2 Investor Presentation
For personal use only 6 November 2013 Manager Manager ASX Market Announcements Market Information Services Section Australian Securities Exchange New Zealand Stock Exchange Level 4, 20 Bridge Street Level 24, NZX Centre, 11 Cable Street Sydney NSW 2000 Wellington, New Zealand Announcement No: 38/201
Slide 2: AMP Subordinated Notes 2 Investor presentation
For personal use only AMP Subordinated Notes 2 Investor presentation
Slide 3: Disclaimer
Disclaimer The information contained in this document (collectively, ‘Information’) has been prepared by AMP Limited (ABN 49 079 354 519) (‘AMP’) in For personal use only connection with a proposed offer of AMP Subordinated Notes 2 (‘AMP Notes 2’) (‘Offer’). The Offer is being made under a prospectu
Slide 4: AMP today
For personal use only AMP today Section 1
Slide 5: About the AMP group
About the AMP group For personal use only The AMP group We provide… has significant – financial advice operations in – superannuation, retirement income and other investment products for individuals investment – superannuation services for businesses management, – administration, banking and investm
Slide 6: AMP group business lines
AMP group business lines AMP group currently has two primary business units For personal use only Wealth - Financial planning (through aligned and owned businesses) Management - Platform administration (including self-managed super fund administration) (WM) - Unit linked superannuation (superannuati
Slide 7: AMP group strategy
AMP group strategy For personal use only AMP group is The group’s strategic priorities are to continue investment in… capitalising on its strengthened Reshaping the Australian Domestic growth opportunities Targeted international competitive business expansion through AMP Capital position following -
Slide 8: Regulation
Regulation For personal use only As a provider of Regulation of AMP group banking, life – The principal regulators that supervise and regulate the activities of the AMP group and the activities of the insurance and businesses and funds that members of the AMP group manage are APRA, RBA, ASIC, ASX, A
Slide 9: Key markets
For personal use only Key markets Section 2
Slide 10: Australian superannuation and pension market (A$1.6 trillion)
Australian superannuation and pension market (A$1.6 trillion)1 For personal use only Other 3% – Australia is the 4th largest global pension market2 with A$1.6 trillion in assets Public sector 16% – Australian wealth management sector remains highly attractive with the market projected to double by 2
Slide 11: AMP – ranked 1st or 2nd in key market segments
AMP – ranked 1st or 2nd in key market segments For personal use only Superannuation1 Pensions1 Individual risk insurance1 AMP AMP Other 18% 18% 22% AMP Other 26% Other 30% 33% NAB ANZ 13% NAB 8% 16% TAL WBC NAB ANZ 11% 11% 20% 8% CBA CBA WBC 19% 13% CBA ANZ 9% 12% 13% 1. Plan for Life – June 2013 Se
Slide 12: Australian financial planners
Australian financial planners1 For personal use only 2013 2012 AMP AMP 19% 20% Other Other 37% 38% NAB NAB 10% 11% CBA CBA 11% 10% IOOF IOOF 6% WBC 5% WBC ANZ ANZ 6% 7% 9% 11% (n = 16,368) (n = 16,690) – Total Australian financial planner numbers declined by 2% in 2013, compared to growth in AMP pla
Slide 13: The Australian wealth management market has seen strong growth
The Australian wealth management market has seen strong growth For personal use only Total Australian superannuation assets 1.8 1.6 1.4 1.2 (A$ trillion) 1.0 0.8 0.6 0.4 0.2 0.0 88 89 90 91 92 93 94 95 96 97 98 99 00 01 02 03 04 05 06 07 08 09 10 11 12 13 Total Australian life insurance assets 0.3 0
Slide 14: Financial overview
For personal use only Financial overview Section 3
Slide 15: Historical reconciliation of segment profit after tax
Historical reconciliation of segment profit after tax For personal use only Restated1 Restated1 This section A$m 12 months to 12 months to 6 months to provides summary 31 Dec 2011 31 Dec 2012 30 Jun 2013 actual historical Reconciliation of segment profit after tax Australian Wealth Management 322 34
Slide 16: Recent cashflows, AUM and Wealth Protection update
Recent cashflows, AUM and Wealth Protection update For personal use only On 25 October Summary of recent announcement 2013, AMP reported – AMP reported experience losses for Q313 of $24 million compared with Q312 experience losses of $37 million its third quarter – AMP has brought forward its year-e
Slide 17: Financial overview – capital management
Financial overview – capital management For personal use only Pro forma The AMP group A$m LAGIC1 as at As at Pro forma as at Adjustment7 holds capital to 31 Dec 2012 30 Jun 2013 30 Jun 2013 protect customers, creditors and AMP shareholder equity2 7,744 7,955 – 7,955 shareholders Allowable hybrid Tie
Slide 18: Financial overview – capital management (continued)
Financial overview – capital management (continued) Pro forma LAGIC1 A$m as at As at Pro forma as at For personal use only 31 Dec 2012 30 Jun 2013 Adjustment3 30 Jun 2013 AMP’s businesses and the AMP Total capital resources 9,323 9,634 160 9,794 group maintain Intangibles (3,808) (3,807) (6) (3,813)
Slide 19: About AMP Subordinated Notes
For personal use only About AMP Subordinated Notes 2 Section 4
Slide 20: Summary of AMP Subordinated Notes offer
Summary of AMP Subordinated Notes 2 offer For personal use only Issuer – AMP Limited ABN 49 079 354 519 (AMP) (the non-operating holding company of the AMP group) Offer size – A$200 million with the ability to raise a higher or lower amount AMP – Face Value of A$100 each Subordinated – Fully paid, u
Slide 21: AMP Subordinated Notes key terms
AMP Subordinated Notes 2 key terms For personal use only Early – May be redeemed prior to the Maturity Date at AMP's option on 18 December 2018 (or any subsequent Interest Redemption Payment Date) or if a Tax Event or Regulatory Event occurs – Subject to the prior written approval of APRA – Holders
Slide 22: AMP Subordinated Notes key terms (continued)
AMP Subordinated Notes 2 key terms (continued) For personal use only Interest – Pay Interest quarterly in arrear and made wholly in cash (no franking credits) – The Interest Payment Dates are 18 March, 18 June, 18 September and 18 December in each year, commencing on 18 March 20141 until the Maturit
Slide 23: Ranking of AMP Subordinated Notes
Ranking of AMP Subordinated Notes 2 Type Illustrative examples1 For personal use only Higher ranking Preferred and secured debt Liabilities preferred by law including employee entitlements and secured creditors Unsubordinated and unsecured debt Bonds and notes, trade and general creditors AMP Notes
Slide 24: Key investment risks associated with AMP Subordinated Notes 2
Key investment risks associated with AMP Subordinated Notes 2 The investment risks listed below are a summary only. You should refer to section 5 ‘Investment risks’ of the AMP Subordinated Notes 2 prospectus before making a decision on whether or not to invest in AMP Subordinated Notes 2 For persona
Slide 25: Offer process
For personal use only Offer process Section 5
Slide 26: Offer summary
Offer summary For personal use only Offer size – The Offer is for the issue of AMP Notes 2 to raise $200 million with the ability to raise a higher or lower amount – The Offer includes the Reinvestment Offer, under which Eligible AMP Notes holders may fund their subscription for AMP Notes 2 by selli
Slide 27: Offer summary (continued)
Offer summary (continued) For personal use only Current – Under APRA transition arrangements, the AMP Notes and other term subordinated debt currently held at the AMP intention with group level by AMP, will continue to be 100 per cent recognised as eligible capital under the revised standards, respe
Slide 28: Key dates
Key dates Key dates for the Offer Date For personal use only Record date for determining Eligible Securityholders (7.00pm Sydney time) 4 November 2013 Lodgement of the prospectus with ASIC 6 November 2013 Bookbuild 13 November 2013 Announcement of the Margin 13 November 2013 Lodgement of the replace
Slide 29: Key contacts
Key contacts For personal use only AMP David Rowe Jason Bounassif Group Treasurer and Director M&A Head of Markets – Group Treasury Tel: +61 2 9257 5762 Tel: +61 2 9761 5619 Email: david_rowe@amp.com.au Email: jason_bounassif@amp.com.au Commonwealth Bank J.P. Morgan UBS Truong Le Peter McInnes Andre