Amp Limited · ASX:AMP
Amp — Debt Investor Presentation (November 2019)
37 slides from Amp's debt investor presentation, Nov 26, 2019
Slide 1: Capital Notes 2 Offer
26 November 2019 For personal use only AMP Capital Notes 2 Offer
Slide 2: Important notice and disclaimer
Important notice and disclaimer Summary information This presentation has been prepared by AMP Limited (ABN 49 079 354 519) (“AMP") in relation to the proposed offer of AMP Capital Notes 2 issued by AMP (“Capital Notes 2”) (“Offer”). The Offer is made under a For personal use only Prospectus lodged
Slide 3: Important notice and disclaimer: Financial data
Important notice and disclaimer Financial data Investors should note that this presentation contains pro forma historical financial information. The pro forma financial information provided in this presentation is for illustrative purposes only and is not represented as being For personal use only i
Slide 4: ASIC Guidance
ASIC Guidance For personal use only Please consider ASIC’s guidance for investors before investing in Capital Notes 2. ASIC’s guidance can be accessed at www.moneysmart.gov.au/investing Capital Notes 2 are complex and involve different risks from a simple debt security or ordinary equity security. C
Slide 5: Overview
Overview For personal use only Section one Offer summary Section two AMP business update Section three Key features of Capital Notes 2 Section four About the Offer
Slide 6: Section one: Offer summary
For personal use only Section one Offer summary
Slide 7: Offer summary
Offer summary Issuer – AMP Limited (AMP) For personal use only Security – Fully paid, subordinated, perpetual, unsecured, convertible notes (but see “Shareholder Approval” below) Offer size – A$200 million with the ability to raise a higher or lower amount – Capital Notes 2 are being issued as part
Slide 8: Section two
For personal use only Section two AMP business update
Slide 9: Focused, higher growth and higher return AMP
Focused, higher growth and higher return AMP Future portfolio For personal use only AMP Life1 AWM AMP Bank AMP Capital NZ WM – Structural challenges of operating in – Traditional advice licensee model – Unique opportunity for bank and – Shift to passive and – Competitive advantage life insurance ind
Slide 10: Reinventing AMP: client-led, simpler, growth-oriented
Reinventing AMP: client-led, simpler, growth-oriented For personal use only Australia International Australian Wealth Management AMP Bank AMP Capital Simpler client-led wealth manager Technology enabled challenger Leading global investment manager, growing with tailored offering to meet the bank tha
Slide 11: Reinventing our business in Australia
Reinventing our business in Australia For personal use only Strategy Objectives Outcomes – Reshape aligned advice to be more – BOLR2 risk mitigation professional, compliant, and productive Australian wealth management – Fewer, more productive, professional advisers Fix – Simplify super1 to improve c
Slide 12: Growing through differentiated capabilities
Growing through differentiated capabilities For personal use only Strategy Objectives Outcomes – Continue to expand our global footprint – Significant earnings growth in building on strong track record, reputation, infrastructure and real estate Real assets longstanding relationships and distributio
Slide 13: Australian wealth management
Australian wealth management AUM and key products resilient, with continued growth in flagship North platform For personal use only More conservative allocation bias to match clients’ risk profile Continued growth in AMP’s flagship North platform Note: and retirement needs 1. Historic market shares
Slide 14: AMP Bank
AMP Bank A well capitalised bank delivering an attractive return on capital For personal use only AMP Bank has consistently delivered higher returns on capital than its peer group AMP Bank remains well capitalised compared to peers and regulatory requirements Note: 1. Based on current Return on capi
Slide 15: AMP Capital
AMP Capital Growth driven by higher margin real assets business For personal use only Notes: Real Estate, Infrastructure and Fixed Income focus Double-digit growth of external AUM 1. Real Estate AUM from External AUM composition (1H 19) (AUM A$m) 10.0% CAGR external clients. 90,000 2. Infrastructure
Slide 16: AMP Life revised agreement – key terms
AMP Life revised agreement – key terms For personal use only Overview and – Revised agreement delivers consideration of A$3.0 billion comprising: structure – A$2.5 billion in cash, and – A$500 million equity interest (expected to be around 20%) in Resolution Life Australia1 - new Australian-domicile
Slide 17: 1H profit summary
1H 19 profit summary For personal use only A$m 1H 191 2H 18 1H 18 (%) 1H 19/1H 18 Notes: 1. Internal distribution fees and product revenues for AMP Life Australian wealth management 103 159 204 (49.5) excluded from Australian and New Zealand wealth management New Zealand wealth management 22 25 28 (
Slide 18: Capital adequacy, funding and liquidity
Capital adequacy, funding and liquidity For personal use only A$m 1H 19 FY 18 Shareholderequity 4,307 6,683 Less: intangibles and other regulatory adjustments (1,267) (3,606) Level 3 eligible capital 3,040 3,077 Minimum Regulatory Requirements (MRR) 1,346 1,426 Level 3 eligible capital above MRR 1,6
Slide 19: Pro forma capital position
Pro forma capital position The table below shows AMP Group’s capital resources at reporting date adjusted for the Offer excluding the A$784 million in equity capital raised via the issuance of AMP Shares after 30 June 2019: For personal use only A$m 30 June 2019 reported Pro forma Adjustments3 Pro f
Slide 20: Section three: Key features
For personal use only Section three Key features of Capital Notes 2
Slide 21: General
General Issuer – AMP Limited (AMP) For personal use only Security – Fully paid, subordinated, perpetual, unsecured, convertible notes (but see “Shareholder Approval” below) Shareholder – The Terms of Capital Notes 2 are different from the terms of Capital Notes 1 and other similar hybrid securities
Slide 22: Distributions
Distributions For personal use only Distributions – Distributions are discretionary, non-cumulative, floating rate payments and are expected to be franked at the same rate as Dividends on AMP Shares. The current applicable Franking Rate is 100% – Distributions are scheduled to be paid quarterly in a
Slide 23: Summary of events that may affect Capital Notes 2
Summary of events that may affect Capital Notes 2 Issue Date Potentially 23 December 2019 perpetual For personal use only Optional Exchange Date Mandatory Conversion Date 16 December 2025 16 December 2027 If Conversion does not occur on 16 If AMP chooses, and certain conditions are met, If the Manda
Slide 24: Optional Exchange and Conversion on Acquisition Event
Optional Exchange and Conversion on Acquisition Event For personal use only Exchange by AMP1 – AMP may choose to Exchange all or some Capital Notes 2 on the Optional Exchange Date (being 16 December 2025) – AMP may choose to Exchange all or some Capital Notes 2 after a Tax Event or a Regulatory Even
Slide 25: Mandatory Conversion
Mandatory Conversion For personal use only – The Mandatory Conversion feature will not apply unless and until Shareholder Approval is obtained – The Mandatory Conversion Date will be 16 December 2027, provided the Mandatory Conversion Conditions have been satisfied on that date. If any of the Mandat
Slide 26: Non-Viability Event Conversion
Non-Viability Event Conversion For personal use only Non-Viability – A Non-Viability Event occurs upon: Event – the issuance of a notice, in writing, by APRA to AMP that the conversion to AMP Shares or Write-off of Perpetual Subordinated Instruments in accordance with their terms or by operation of
Slide 27: Ranking in a winding-up
Ranking of Capital Notes 2 in a winding-up1,2 For personal use only Type Illustrative examples Higher ranking Liabilities preferred by law including employee entitlements and Preferred and secured debt secured creditors Unsubordinated and unsecured debt Bonds and notes, trade and general creditors C
Slide 28: Comparison between Capital Notes 2 and other types of investments
Comparison between Capital Notes 2 and other types of investments1 Bank deposits Capital Notes 1 Capital Notes 2 AMP Shares For personal use only A bank, credit union or building society Issuer / provider AMP AMP AMP (such as AMP Bank) Unsecured and perpetual subordinated Unsecured and perpetual sub
Slide 29: Key risks associated with an investment in Capital Notes 2
Key risks associated with an investment in Capital Notes 2 Capital Notes 2 are not guaranteed, nor – Capital Notes 2 are not guaranteed by, nor are they bank deposits, policy liabilities or protected accounts or investments in any superannuation or other fund managed are they bank deposits or policy
Slide 30: Key risks associated with an investment in Capital Notes 2
Key risks associated with an investment in Capital Notes 2 AMP Shares are a different type of – If Capital Notes 2 are Converted, Holders will be issued AMP Shares. AMP Shares are a different type of investment to Capital Notes 2 and AMP Shareholders have investment to Capital Notes 2 different righ
Slide 31: Key risks associated with an investment in Capital Notes 2
Key risks associated with an investment in Capital Notes 2 It is not certain whether and when Capital – There are a number of scenarios in which Capital Notes 2 may be Exchanged. It is uncertain whether and when an Exchange may occur. The timing of any Exchange may Notes 2 may be Exchanged not suit
Slide 32: Section four: About the Offer
For personal use only Section four About the Offer
Slide 33: Offer structure
Offer structure For personal use only Securityholder Offer – Offer to Eligible Securityholders – an AMP Shareholder or holder of Capital Notes 1 who is shown on the register of AMP Shares or Capital Notes 1 (as applicable) at 7.00pm (Sydney time) on 15 November 2019 as having an address in Australia
Slide 34: Key dates
Key dates For personal use only Key dates for the Offer Date Record Date for determining Eligible Securityholders (7.00pm Sydney time) 15 November 2019 Lodgement of the Prospectus with ASIC 26 November 2019 Bookbuild 3 December 2019 Announcement of the Margin 3 December 2019 Lodgement of the replace
Slide 35: Investment highlights
Investment highlights ✓ For personal use only New and – New experienced Chairman (including CEO of CBA from 1992 to 2005) experienced – New CEO with successful international experience in private banking leadership – New leadership team focused on executing the new business strategy ✓ – Focusing on
Slide 36: Contact directory
Contact directory For personal use only Issuer AMP Limited Jason Bounassif Group Treasurer +61 2 9257 9684 Arranger and Joint Lead Manager UBS Enrico Musso +61 2 9324 2985 Joint Lead Managers Commonwealth Bank of Australia Truong Le +61 2 9118 1205 Morgans Steven Wright +61 7 3334 4941 National Aust
Slide 37: Thank you
For personal use only Thank you