Slide 1: Interim Results 2003
Slide 2: Group review
Group review Business unit review Demerger update Conclusion
Slide 3: Global equity indices
Global equity indices December 1999 — June 2003 120.9 a : a ° = au a a a bk a o > oO * a 3 = S&P 600 FISE 100 Jun-00 Dec-00 Jun-01 Dec-01 Jun-02 Jun-03
Slide 4: FTSE Life Assurance Index and AMP share price
FTSE Life Assurance Index and AMP share price December 1999 — June 2003 445 405 a or had 3 2 (i 3 oa = BS 3 g oO 3 FISE Life Ap Jun-00 Dec-00 dun-01 Dec-01 Jun-02 Dec-02 Jun-03
Slide 5: AMP change program since late 2002
AMP change program since late 2002 New board and management team in place Strategic review of Business Units and Group Closure of AMP International Banking unit sales and restructuring Corporate Office cost initiatives AFS cost initiatives, new business model and brand/planner management HGI cost in
Slide 6: Group overview
Group overview Net loss of A$2,159m after UK writedowns of £907m (A$2,268m) in line with 1 May estimates Underlying business performance stabilising with signs of a pick up as cycle turns Risk-based capital requirement substantially lowered Managing business through complex challenges, externally an
Slide 7: Business Unit 1H03 overview
Business Unit 1H03 overview ¢ UKFS transitioning to a closed book, with careful management of costs, customers and balance sheet risk Henderson impacted by lagged effect of 3 year bear market but well positioned to benefit from market upturn post 2003 e Australian Financial Services remains resilien
Slide 8: Financial performance
Financial performance These results have been subject to a full actuarial and audit review Australian Financial Services UK Life Services UK Contemporary Financial Services Henderson Global Investors — North Henderson Global Investors — South Total BU operating margins Discontinued businesses. Corpo
Slide 9: Significant items - valuation adjustments
Significant items - valuation adjustments Writedowns associated with risk reduction initiatives Servco NPLL NPI Ltd London Life Pearl TOTAL (1,318) Writedowns associated with strategy changes UK Service Company EMVONA (570) Interactive Investor EMVONA and other writedowns (40) NPI Ltd goodwill (195)
Slide 10: Key results
Key results BU operating margins Total investment income
Slide 11: Key results
Key results Underlying profit contribution ROE (underlying) 6.9% 6.8% 11.3% Earnings per share (underlying) 0.25 0.29 0.49 Dividend per share 0.07 0.20 0.26
Slide 12: Capital base — source and mix
Capital base — source and mix Australian Financial Services UK Financial Services HGI North HGI South Virgin Discontinued businesses Corporate Office 1,160 1,160 Inter business unit holdings (1,407) (1,407) Total shareholder capital resources 9.697 11,512 Of which: Ordinary equity 5,210 7,025 Hybrid
Slide 13: Slide 13
Slide 14: UK Financial Services results
UK Financial Services results UKFS operating margins substantially impacted by markets and risk reduction initiatives » £9m profit in UK Life Services » offset by losses of £16m related to Contemporary business (NPI now closed) UK life companies now effectively closed to new business, with a focus o
Slide 15: UK Financial Services — key indicators
UK Financial Services — key indicators Total outflows
Slide 16: UK Financial Services — embedded value (EV)
UK Financial Services — embedded value (EV) EV estimate at May 1 of £1545m restated December 2002 EV as if the writedowns and initiatives taken to reduce risk had occurred; it was nota roll forward EV at that date 1HO3 EV of £1341m reflects impacts of writedowns and initiatives taken to reduce risk
Slide 17: UK regulatory capital
UK regulatory capital » Further major reduction in Equity Backing Ratios (EBRs) in 1H03 to stabilise regulatory capital position of UK life companies Free Asset Ratios (FARS) lower but more stable; no longer impacted by large move in equity markets * Property exposure
Slide 18: Henderson Global Investors results
Henderson Global Investors results Operating margins down 39% overall to A$62m reflecting lag effect of 3 year bear market » HGI North down 50% to £11m » HGI South down 23% to A$34m AUM down 13% to A$231b » HGI North down 12% on average against 1H02 (average FISE100 25% lower) » HGI South down 7% on
Slide 19: HGI North — key indicators
HGI North — key indicators Average AUM
Slide 20: HGI North — operating margins
h* — operating margins Market Performance / Average External Internal Movement / transaction margin cashflow cashflow AUM fees * Includes Henderson UK, Europe and Asia Pacific
Slide 21: HGI South — key indicators
HGI South — key indicators Average AUM A$70.5b A$71.5b
Slide 22: HGI South — operating margins
HGI South* — operating margins Market Margin _ Private capital Cost movement / & property reductions AUM fees “Includes AMP. Henderson Australia and New Zealand.
Slide 23: Australian Financial Services results
Australian Financial Services results Operating margins down 9% on 1H02 (up 27% on 2H02)—a resilient performance in a tough market Sales down 20% on 1H02 in line with market Persistency down slightly to 82.5% and planner distribution force stable Controllable costs down 16% and restructuring program
Slide 24: Australian Financial Services — key indicators
Australian Financial Services* — key indicators New business index 3,694 4,735 4,633 Total outflows 4,197 4,331 3,801 Total contemporary net cashflows 452 989 1,620 Persistency 82.5% 82.7% 84.8% Controllable costs 255 307 304 Cost to income ratio 40% 46% 41% Capital 3,819 3,635 3,794 RolC 14.8% 13.3
Slide 25: Australian Financial Services — operating margins
Australian Financial Services — operating margins* 1HO2 Equities / New Capital Persistency Cost Bond business initiatives reductions markets * Includes NZ and banking
Slide 26: AFS — value of new business
AFS —- value of new business @ 3% discount margin 1H02 Bond yields Cost Mix of Volume _—__Persistency Other restated* reductions business * Restated to reflect reallocation of costs from maintenance to acquisition under new business model 1HO3
Slide 27: AFS — embedded value
AFS — embedded value @ 3% discount margin 190 (16) (CE) (61) 6,344 (294) =... a oan (ELL au FY02 Expected New. Cost Investment Persistency. Other 4HOS EV. Net profit restated” return business reductions and bond (before ‘out yields transfers) “Restated to reflect reallocation of costs from maintenan
Slide 28: Demerger update
Slide 29: Demerger rationale for AMP Group unchanged
Demerger rationale for AMP Group unchanged * Demerger creates focused businesses with clear strategic objectives to deliver shareholder value in rapidly transforming markets * Strongest linkages between the businesses within regional markets, rather than cross-markets « UK and Australian businesses
Slide 30: Demerger process — possible scenarios
Demerger process — possible scenarios While demerger is planned outcome, other possible scenarios from here are: » Demerger not required due to sale of UK businesses » Demerger not approved Demerger remains most likely and preferred outcome Demerger timetable tight but on track
Slide 31: Demerger developments since May — Asset sales
Demerger developments since 1 May — Asset sales * Sale of selected bank assets completed; likely to release around $300m of capital in 2HO3, subject to APRA approval * NPI Limited not sold — retained and closed to new business ¢ Cobalt/Gordian sale process progressing
Slide 32: Demerger developments since May — Capital structure
Demerger developments since 1 May — Capital structure Total shareholder capital resources of A$11.5b adequate to facilitate the demerger but the mix of capital needs to change Final capital structures of both new entities remain subject to ongoing discussions with regulators RPS refinancing both nec
Slide 33: Demerger developments since May — Capital structure
Demerger developments since 1 May — Capital structure * Refinancing will likely be for the full amount of the RPS given UK asset sales such as NPI did not occur; proceeds from other asset sales will also be taken into account in the final capital structure Now also looking to strengthen investment c
Slide 34: Key EM content
Key EM content Capital structures of New AMP and New Henderson New organisational structures, staffing and business strategies Historic pro formas for each new entity (Ernst & Young) Forecasts (New AMP) and outlook statements (New AMP and New Henderson) Modified embedded value for AFS and UKFS (Till
Slide 35: Demerger timetable — tight but achievable
Demerger timetable — tight but achievable Scoping of demerger options and preparation May pepe ® of Explanatory Memorandum (EM) Dec 2003 » GM held and separation effected
Slide 36: Conclusion
Conclusion Our objective continues to be maximising long term value of the businesses in AMP UKFS focus remains to preserve and release shareholder value HGI earnings lower at this stage of the cycle but set to recover with markets post 2003 AFS proving strong and resilient business Demerger plannin