Slide 1: ASX Announcement: Presentation by AMP CEO Craig Dunn
ASX Announcement 6 May 2010 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 Announcement N
Slide 2: AMP – creating the future
For personal use only AMP – creating the future Craig Dunn Chief Executive Officer 6 May 2010
Slide 3: Decisive response to the global financial crisis
Decisive response to the global financial crisis For personal use only 1. Maintained and improved financial strength A$1.2b in surplus capital at the end of FY 09 Dynamically managed equity exposure in SF1 Gearing low at 13% 2. Efficiency gains led to reduced costs Total costs fell 5% in FY 09, cost
Slide 4: Current position
For personal use only Current position 3
Slide 5: AMP well positioned to capture future growth opportunities
AMP well positioned to capture future growth opportunities For personal use only Australian economic performance continues to outshine other developed countries, although risks to global recovery remain Equity markets well ahead of March 2009 lows; unlisted asset valuations stabilising Wealth manage
Slide 6: Cashflows improving in Q1 2010
Cashflows improving in Q1 2010 For personal use only AMP Financial Services net cashflows up 12% to A$236m from A$210m in Q1 09 Net cashflows increased 30% to A$236m compared to A$182m in Q1 09, excluding corporate superannuation mandate wins Improvement in market conditions and investor sentiment h
Slide 7: Cashflows improving in Q1 2010
Cashflows improving in Q1 2010 For personal use only Corporate superannuation net cashflows fell A$60m to A$190m due to higher withdrawal balances resulting from improved investment markets No corporate superannuation mandates transitioned in Q1 10, compared to A$28m in Q1 09 Employer contributions
Slide 8: Responding early and decisively to regulatory change
For personal use only Responding early and decisively to regulatory change 7
Slide 9: Regulatory reviews – overview
Regulatory reviews – overview For personal use only Ripoll inquiry Investigated issues associated with the collapse of Storm Financial, Opes Prime and MFS Recommendations handed to government in November 2009 Government response (“Future of Financial Advice”) issued April 2010 Henry review Broad rev
Slide 10: Ripoll – recommendations and AMP's response
Ripoll – recommendations and AMP’s response For personal use only Government response Prospective ban on super and investment product commissions to apply from 1 July 2012 Statutory fiduciary duty of financial advisors to act in clients’ best interests AUM-based planner fees permitted other than on
Slide 11: Henry – recommendations and AMP's response
Henry – recommendations and AMP’s response For personal use only Government response Superannuation guarantee levy increasing from 9% to 12% over next 10 years Concessional contribution cap will not be lowered for those aged 50+ with less than $500,000 in superannuation Government rebate (up to $500
Slide 12: Cooper Review – current status
Cooper Review – current status For personal use only Phase 1 – Governance Proposed a member rather than product/sector focus for superannuation system o Disconnected o Universal o Choice o Self-managed MySuper: predicated on providing a simple, cost-effective product with limited investment options
Slide 13: Cooper Review – AMP well positioned
Cooper Review – AMP well positioned For personal use only Phase 1 – Governance Member approach in line with AMP’s submission to Phase 1 MySuper: o Launched AMP Flexible Lifetime Super Easy in April 2009 o Moving to no commissions on superannuation new business from 1 July 2010 o Low cost “SignatureS
Slide 14: Repositioning the company for growth
For personal use only Repositioning the company for growth 13
Slide 15: AMP – ready for the future
AMP – ready for the future For personal use only Significant investment across value chain in past two years to reposition AMP for the future. Reinvigorating core superannuation offering Growing and repositioning financial advice channels Expanding distribution reach Pushing into Asia via AMP Capita
Slide 16: Distribution – refining AMP's advice proposition
Distribution – refining AMP’s advice proposition For personal use only Horizons Academy – changing the face of financial planners • Over 200 graduates to date • Increasing intake by 50% in 2010 Only 1 in 6 • Average graduate age 35, average industry age 54 • 50% more efficient than planners who join
Slide 17: Manufacturing – superannuation, wealth protection and banking opportunities
Manufacturing – superannuation, wealth protection and banking opportunities For personal use only 4.5m Australians not Renovating core superannuation offer • Offering more Australians more choice in terms of saving enough for type and cost of superannuation product adequate retirement1 • Easier to u
Slide 18: Investment management – Asian growth opportunities
Investment management – Asian growth opportunities For personal use only Focusing on four markets, with targeted strategy relevant to each market – currently represents 6% of AMP Capital Investors’ AUM US$13.6 trillion • Japan: acquired local distributor; marketing invested in Asia Aussie bonds, glo
Slide 19: Taking advantage of select M&A opportunities
For personal use only Taking advantage of select M&A opportunities 18
Slide 20: Role of M&A and alliances in AMP's growth strategy
Role of M&A and alliances in AMP’s growth strategy For personal use only Acquisitions must satisfy criteria: strategic, economic, within risk appetite Active and disciplined approach to M&A prospects and alliances where they can accelerate growth and strengthen business position Several bolt-on acqu
Slide 21: AXA Asia Pacific update
AXA Asia Pacific update For personal use only Acquisition would help accelerate parts of growth strategy Merged entity would have scale and efficiency benefits in core markets with a broad advice and distribution footprint; increased exposure to risk insurance ACCC announced it did not oppose AMP’s
Slide 22: Summary
For personal use only Summary 21
Slide 23: Summary
Summary For personal use only Wealth management market continues to hold significant opportunities, with regulatory uncertainty decreasing Change program successfully reshaping the business to meet the demands of an evolving market Responding to regulatory changes well ahead of curve Significant and