Slide 1: Half Year Financial Results announcement cover
For personal use only 10 August 2017 Manager Client and Market Services Team ASX Market Announcements NZX Limited Australian Securities Exchange Level 1, NZX Centre, 11 Cable Street Level 4, 20 Bridge Street PO Box 2959 Sydney NSW 2000 Wellington, New Zealand Announcement No: 26/2017 AMP Limited (AS
Slide 2: 2017 half year results
amp ZS 2017 half year results Craig Meller, Chief Executive Officer Gordon Lefevre, Chief Financial Officer For personal use onl 10 August 2017
Slide 3: AMP – Australia's leading wealth manager
AMP – Australia’s leading wealth manager For personal use only Notes 1. Fund Market Overview Retail – Marketer, Strategic Insight (Plan For Life), March 2017. 2. Planner Numbers, Money Management Top 100 Dealer Groups, October 2016. 3. Insurance claims paid to customers in Australia in 1H 17. 2 Sect
Slide 4: Executive summary
Executive summary For personal use only Financial performance – 1H 17 underlying profit of A$533m (1H 16: A$513m) and net profit of A$445m (1H 16: A$523m) – Strong earnings momentum in AMP Capital and AMP Bank – Resilient Australian wealth management performance with growth in revenue from Advice an
Slide 5: 1H profit summary
1H 17 profit summary For personal use only A$m 1H 17 1H 16 % Australian wealth management 193 195 (1.0) AMP Capital¹ 92 83 10.8 AMP Bank 65 59 10.2 Australian wealth protection 52 47 10.6 New Zealand financial services 65 62 4.8 Australian mature 75 69 8.7 BU operating earnings 542 515 5.2 Group Off
Slide 6: 1H movement in underlying profit
1H 17 movement in underlying profit For personal use only Strong 1H 17 A$m operating performance 3 6 5 7 6 (3) 9 (11) (2) 533 513 1H 16 Australian AMP Capital AMP Bank Australian New Zealand Australian Group office Underlying Interest 1H 17 underlying wealth operating operating wealth operating matu
Slide 7: Business unit results
Business unit results Section 2
Slide 8: Wealth management – overview
Wealth management – overview For personal use only Solid performance Key performance measures 1H 17 1H 16 in final MySuper Investment related revenue (A$m) 1 630 613 transition period Other revenue (A$m) 51 52 Operating earnings (A$m) 193 195 Controllable costs (A$m) (246) (245) Total retail and cor
Slide 9: Wealth management – net cashflows
Wealth management – net cashflows For personal use only Flows driven by Net cashflows summary (A$m) 1H 17 1H 16 discretionary contributions North¹ 2,879 2,664 and corporate AMP Flexible Super¹ (129) 220 super mandate wins Other products and platforms¹ (1,535) (1,913) Total retail on AMP platforms 1,
Slide 10: AMP Capital – overview
AMP Capital – overview For personal use only Continued Key performance measures 1H 17 1H 16 momentum driven by growth Operating earnings (A$m)1 92 83 in real assets Fee income (A$m) 348 322 Controllable costs (A$m) (198) (192) Cost to income ratio 56.6% 57.9% Total external net cashflows (A$m) 2,439
Slide 11: AMP Capital – net cashflows and investment performance
AMP Capital – net cashflows and investment performance For personal use only Strong turnaround External net cashflows (A$m) 1H 17 1H 16 Net cashflows (A$m) 1H 17 1H 16 in external flows; momentum in real China (CLAMP)¹ 737 (298) Internal (1,413) (2,458) assets continues Japan 113 (111) International
Slide 12: AMP Bank – overview
AMP Bank – overview For personal use only Strong growth in Key performance measures 1H 17 1H 16 1H 17; maintaining conservative lending Operating profit (A$m) 65 59 approach Controllable costs (A$m) (38) (34) Cost to income ratio 29.0% 28.5% Net interest margin 1.67% 1.71% Residential mortgage book
Slide 13: Wealth protection – overview
Wealth protection – overview For personal use only Delivering on Key performance measures 1H 17 1H 16 strategy – strategic Profit margins (A$m) 49 90 reinsurance program reduces Capitalised (losses) / reversals (A$m) 3 (1) earnings volatility Experience profits / (losses) (A$m) 0 (42) Operating earn
Slide 14: New Zealand and Mature – key performance measures
New Zealand and Mature – key performance measures For personal use only Solid NZ New Zealand 1H 17 1H 16 Mature 1H 17 1H 16 performance highlights success Profit margins (A$m) 57 57 Operating earnings (A$m) 75 69 of ongoing manage Experience profits / (losses) (A$m) 8 5 AUM (A$b) 21.1 21.5 for value
Slide 15: For personal use only
For personal use only
Slide 16: Financial overview – key items outside business unit results
Financial overview – key items outside business unit results For personal use only A$m 1H 17 1H 16 % Change Underlying profit 533 513 3.9 Other items (9) (6) (50.0) Business efficiency program costs 0 (12) n/a Amortisation of acquired intangible assets¹ (43) (39) (10.3) Profit before market adjustme
Slide 17: New reinsurance arrangements – deal structure
New reinsurance arrangements – deal structure For personal use only Delivers capital Existing Munich Re arrangement on the AMP Life Australian retail book increased from 50% to 60% quota release from AMP share Life and assists New open-ended 60% quota share arrangement with Gen Re1 on the NMLA A
Slide 18: Financial overview – balance sheet and regulatory capital
Financial overview – balance sheet and regulatory capital For personal use only A$m 1H 17 FY 16 Change Shareholder equity1 7,296 7,489 (193) Total corporate subordinated debt1 951 951 0 Total corporate senior debt1 668 611 57 Total capital resources 8,915 9,051 (136) Level 3 eligible capital 3,358 3
Slide 19: Financial overview – interim 2017 dividend
Financial overview – interim 2017 dividend For personal use only Interim 2017 dividend of 14.5 cents a share, 4% up year-on-year Dividend within 70%-90% payout range Franked to 90% Dividend Reinvestment Plan (DRP) remains in place for eligible shareholders No discount will apply to the DRP a
Slide 20: Financial overview – flat cost profile, improving cost to income
Financial overview – flat cost profile, improving cost to income For personal use only A$m 8 473 471 (6) 1H16 controllable costs, (ex AMP Capital) Business efficiencies (net of CPI growth) Increased investment in growth 1H17 controllable costs, (ex AMP Capital) Cost discipline maintained in 1H 17 Me
Slide 21: Strategy update
Strategy update oection 4
Slide 22: AMP strategy
AMP strategy For personal use only 21 Section 4, AMP 2017 half year results
Slide 23: Growth ambitions
Growth ambitions For personal use only AMP group – 15% RoE in FY 18 – 3% cost reduction in FY 17 (ex AMP Capital) – Flat costs (ex AMP Capital) in FY 18 Wealth Management – Targeting 5% revenue growth through the cycle including new growth contribution from Advice and SMSF AMP Capital – Double-digit
Slide 24: Delivering on strategy
Delivering on strategy For personal use only Tilt investment to higher growth, less capital – Comprehensive program of reinsurance delivering significant capital release; retail book will be intensive businesses effectively 65% reinsured for claims incurred from 1 November 2017 – Remain open-minded
Slide 25: Driving revenue growth in wealth management – Advice and SMSF
Driving revenue growth in wealth management – Advice and SMSF For personal use only Wealth management - Targeting 5% revenue growth through the cycle from 2018 in normal markets Other revenue1 growth - Other revenue to grow by 10% in 2017 as Advice and SMSF strategies deliver additional revenue grow
Slide 26: Summary
Summary For personal use only Business performance - Improved operating results across business - Strong growth momentum continues in AMP Capital and AMP Bank - Resilient Australian wealth management performance with effective management of margin compression - Stabilised wealth protection business
Slide 27: For personal use only
aa ae) . © OQ. QO, KG. oa ses
Slide 28: Guidance summary
Guidance summary For personal use only Costs Mature – On track for FY 17 controllable cost outcome of A$950m (ex AMP Capital) – Expected to run off at around 6% per annum; in volatile investment markets – Controllable costs for FY 18 (ex AMP Capital) not to exceed A$950m this run-off rate can vary s
Slide 29: AMP's advice network
AMP’s advice network For personal use only Mortgage Total AUM AUM per As at June 2017 Target market Advisers consultants1 ($bn) adviser ($m) AMP Advice Goals-based 227 20 9 42 AMP Financial Planning2 1,465 431 64 43 Core licensee Charter Financial Planning 760 39 22 29 offer Hillross 319 22 14 44 To
Slide 30: Leverage strengths to drive new growth
Leverage strengths to drive new growth For personal use only Global Partnerships China Life AMP Asset Management (CLAMP)¹ AUM grew 22% to RMB 141b (A$27.1b) in 1H17 Launched 9 new products in 1H 17 including separately managed accounts, equity and fixed income funds Fastest growing new funds m
Slide 31: Regulatory environment
Regulatory environment For personal use only Proposed regulatory reform AMP position Objectives of superannuation − AMP believes that the purpose of superannuation is to lift as many Australians as possible off the safety - Draft legislation before Parliament welfare net of the age pension − We do n
Slide 32: Important disclaimer
Important disclaimer For personal use only 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 ma