Slide 1: 2022 Half Year Results
2022 HALF YEAR RESULTS THURSDAY 11 AUGUST Alexis George Chief Executive Officer James Georgeson Chief Financial Officer 22
Slide 2: Agenda
Agenda 1H 22 Financial Progress on Summary overview results strategic objectives 2
Slide 3: 1H 22 overview
1H 22 overview
Slide 4: 1H 22 highlights
1H 22 highlights — Strong capital position — Capital surplus strengthened through asset sales, in addition to profits generated from underlying operations. Financial — Capital strength and robust balance sheet enables capital returns to shareholders and ability for AMP to support business performanc
Slide 5: Strategic delivery
Strategic delivery Strategy implementation successfully repositioning portfolio — Significant progress on strategy and delivery of — Clear roadmap for strategic delivery in 2H 22: 1H 22 2H 22 strategic 2022 market commitments: strategic — Following controlled launch, deliver digital mortgage deliver
Slide 6: Short-term uncertainty
Short-term uncertainty Agile approach to challenges and opportunities Challenges for AMP Opportunities for AMP Increasing – Focus on high credit quality of loan book; low arrears – Slowed pace of growth in housing market resulting in provide level of earnings protection. interest rates lower loan gr
Slide 7: 1H 22 financial results
1H 22 financial results 2
Slide 8: 1H 22 profit summary
1H 22 profit summary Earnings reflect expected impact of pricing changes, partly offset by planned cost reductions % 1H 22/ 1H 22 key movements A$m 1H 22 2H 21 1H 21 FY 21 1H 21 AMP Bank 46 69 84 153 (45.2) — NPAT (underlying) of A$117m was down A$38m (25%) on 1H 21 Platforms 36 57 66 123 (45.5) lar
Slide 9: Key NPAT movements
Key NPAT movements Earnings reflect expected impact of pricing changes, partly offset by planned cost reductions (A$m, post-tax) 155 (9) Expected credit loss benefit in 1H 21 (12) not recurring North hedging impacts 1 117 (38) 2 10 55 Group AMP Bank Wealth (2) AMP Capital office other continuing NZW
Slide 10: Items below underlying profit
Items below underlying profit 1H 22 net gain from Infrastructure Debt sale offset by separation and transformation program % 1H 22/ A$m 1H 22 2H 21 1H 21 FY 21 1H 21 Client remediation and related costs (22) (45) (33) (78) 33.3 Transformation cost out (26) (72) (61) (133) 57.4 Separation costs (52)
Slide 11: AMP Bank
AMP Bank Disciplined approach to managing loan book in a challenging market % 1H 22/ 1H 22 business highlights Key performance measures 1H 22 2H 21 1H 21 1H 21 — NPAT of A$46m, decreased 45% from 1H 21, largely due to a reduction in net Net interest income (A$m) 176 195 204 (13.7) interest income an
Slide 12: AMP Bank
AMP Bank High quality loan book growing above system Loan growth vs system Mortgage book Credit quality — AMP Bank’s residential mortgage book grew at — The Bank continues to focus on maintaining book — Strong credit quality maintained; 30+ days arrears 1.15x system in a highly competitive lending q
Slide 13: Australian Wealth Management
Australian Wealth Management % 1H 22/ Key performance measures 1H 22 2H 21 1H 21 FY 21 1H 21 AUM based revenue (A$m)1 380 445 475 920 (20.0) Advice revenue (A$m) 30 35 23 58 30.4 Other revenue and investment income (A$m) 5 27 23 50 (78.3) Variable costs (A$m) (114) (156) (159) (315) 28.3 Controllabl
Slide 14: Platforms
Platforms North gaining traction in IFA market with inflows 1H 22 business highlights % 1H 22/ Key performance measures 1H 22 2H 21 1H 21 1H 21 — NPAT decreased to A$36m (1H 21: A$66m) as a result of strategic pricing changes, North Guarantee hedging losses (1H 22: A$8m loss vs 1H 21: A$4m gain) due
Slide 15: Master Trust
Master Trust Subdued underlying earnings reflect lower margins and markets 1H 22 business highlights % 1H 22/ Key performance measures 1H 22 2H 21 1H 21 1H 21 — NPAT of A$27m, declined on 1H 21 (A$63m) due to competitive pricing changes, partly offset by lower costs from an ongoing focus on operatio
Slide 16: Advice
Advice Transformation delivering strong outcomes; losses on track to halve in FY 22 % 1H 22/ 1H 22 business highlights Key performance measures 1H 22 2H 21 1H 21 1H 21 — NPAT loss of A$30m was A$55m lower than 1H 21 reflecting significant benefits of Advice reshape completion, move to contemporary s
Slide 17: New Zealand Wealth Management
New Zealand Wealth Management Resilient earnings despite investment market impacts % 1H 22/ 1H 22 business highlights Key performance measures 1H 22 2H 21 1H 21 1H 21 — NPAT decreased 11% to A$17m, primarily due to lower AUM as a result of lower Total revenue (A$m) 64 74 76 (15.8) markets; AUM decre
Slide 18: AMP Capital
AMP Capital Resilient earnings; performance fees remain subdued % 1H 22/ 1H 22 business highlights Key performance measures 1H 22 2H 21 1H 21 1H 21 — NPAT was A$57m up 36% from A$42m in 1H 21. AUM based management fees (A$m) 150 203 211 (28.9) — Continuing operations NPAT up 63% to A$26m (1H 21: A$1
Slide 19: Group office
Group office Improved performance from lower costs and debt paydown % 1H 1H 22 Group office highlights A$m 1H 22 2H 21 1H 21 FY 21 22/ — 1H 22 Group office costs were down A$1m from 1H 21 to A$31m (post-tax) 1H 21 primarily from cost out benefits. Group office costs (post-tax) (31) (34) (32) (66) 3.
Slide 20: Controllable costs
Controllable costs Costs tracking to target in 2022 A$45m (11%) (A$m) reduction Key movements in 1H 22: — Disciplined cost management has reduced costs by A$45m from 1H 21 through the simplification of organisational structures, 38 423 9 (7) infrastructure and technology. (47) CPI and other Project
Slide 21: Strong capital position
Strong capital position A$1,455m above target capital level as at 30 June 2022 (A$m) 3,459 AMP Limited’s capital position as at 30 June 2022 is A$3,459m comprising: — Minimum Regulatory Requirements: • AMP Bank A$952m. 1,455 • Superannuation business A$297m. • AMP Capital A$45m. Surplus capital — Bo
Slide 22: Group capital movements across 1H 22
Group capital movements across 1H 22 Strong capital position supported by asset sales — Strong capital position with A$1,455m surplus capital at 30 June 2022. (A$m) A$959m — Successful completion of Infrastructure 103 1,455 Debt sale added A$390m to surplus. 509 31 — Sale of AMP’s stake in Resolutio
Slide 23: Pro-forma capital position
Pro-forma capital position Resultant proforma capital position of ~A$2b — At 30 June 2022, total eligible capital above target requirements was A$1,455m. (A$m) — Key movements expected in the Group’s surplus 300 (480) capital position over the next 12 months, including the impacts from trade sales,
Slide 24: FY 22 guidance
FY 22 guidance Outlook for key financial items Bank Master Trust Controllable costs – Expecting FY 22 growth to be in line with 1H 22 supported – Net cash outflow position to continue improvement over – FY 22 controllable cost target of A$795m (including A$70m by improved service and turnaround time
Slide 25: Progress on strategic priorities
Progress on strategic priorities
Slide 26: FY 22 priorities
FY 22 priorities Hitting key milestones in strategic agenda Complete separation of Collimate Reduce cost base Grow Bank Capital in preparation for trade sales Focus on IFA flows Explore new business Purpose and values in Platforms opportunities Section 3 | AMP LIMITED - 1H 2022 RESULTS 26
Slide 27: FY 22 priorities: Complete separation of Collimate Capital
FY 22 priorities Complete separation of Collimate Capital in preparation for trade sales 1H 22 progress AMP Limited following completion of sales — Agreed the sales of Collimate Capital businesses to Dexus and AMP Bank Master Trust Platforms Advice New Zealand DigitalBridge. A competitive, Offering
Slide 28: FY 22 priorities: Reduce cost base
FY 22 priorities Reduce cost base 1H 22 progress AMP controllable cost base FY 19 – FY 22 (A$m) — Disciplined cost management has reduced costs by A$45m from 1H 21 through the simplification of organisational structures, infrastructure 1000 and technology. 917 910 845 900 — Concluded A$300m cost-out
Slide 29: FY 22 priorities: Grow Bank
FY 22 priorities Grow Bank 1H 22 progress 2H 22 focus — 1H 22 residential loan growth above system (1.15x system). — Launch digital mortgage offer to retail customers, enabling unconditional loan approval in as little as 10 minutes. — Improved customer ‘Time to Yes’ for mortgages by 33%. — Continue
Slide 30: FY 22 priorities: Focus on IFA flows in Platforms
FY 22 priorities Focus on IFA flows in Platforms 1H 22 progress 2H 22 focus — Cash inflows from IFAs up 49% on 1H 21 to A$758m. — Launch innovative retirement solution on North platform. — Expanded range of managed portfolios, with AUM surpassing A$5b. — Grow distribution capabilities to support IFA
Slide 31: FY 22 priorities: Explore new opportunities, purpose and values
FY 22 priorities Explore new business opportunities Purpose and values 1H 22 progress 1H 22 progress — Commenced working with digital mortgage fintech, Nano, to expand — Launched a new purpose statement and values reflecting a simpler, direct-to-consumer (D2C) offers in AMP Bank, enabling learnings
Slide 32: Summary
4 Summary
Slide 33: Path to new AMP
Path to new AMP Streamline portfolio with a relentless focus on customers — Invest to grow AMP Bank — Grow the North platform, building new relationships with independent REPOSITION financial advisers — Deliver stable earnings and optimal client outcomes in Master Trust and NZWM — Accelerate the tra
Slide 34: 1H 22 summary
1H 22 summary Progressing strategy and FY 22 priorities to reposition and simplify, focus now shifting to explore Reposition Simplify Explore — Investment in growth of the Bank — Agreed sales of Collimate Capital — Digital mortgage product launched resulted in 6.5% annualised businesses to simplify
Slide 35: Appendix
Appendix
Slide 36: Capital position
Capital position Surplus capital A$1,455m above requirements at 30 June 2022 A$m 1H 22 2H 21 1H 21 % 1H 22/1H 21 Total capital resources 5,910 5,305 6,332 (6.7) Total corporate subordinated debt (603) (603) (876) 31.2 Total corporate senior debt (828) (828) (1,254) 34.0 Shareholder equity 4,479 3,87
Slide 37: China Life Joint Ventures
China Life Joint Ventures Continued growth in earnings and AUM across large addressable markets \ China Life Pension Company (CLPC) — AUM at 1H 22 increased 3% YTD. — In 1H 22, CLPC core business lines of enterprise annuity and occupational pension continue to grow strongly achieving growth rate of
Slide 38: AMP Bank
AMP Bank A well-capitalised bank delivering in a challenging market environment Return on capital (%) Common Equity Tier 1 (%) 20 Regional peers avg.1 Regional peers avg.1 15 15.1 11.8 15 10.9 10.7 12.7 10.4 10.4 11.8 10 10 9.1 7.8 5 5 0 0 1H 20 2H 20 1H 21 2H 21 1H 22 FY 18 FY 19 FY 20 FY 21 1H 22
Slide 39: AMP Bank
AMP Bank Cost to income ratio versus peer group1 (%) Significant reduction in mortgages in arrears (%) AMP Bank 90+ days arrears AMP Bank 30+ days arrears AMP Bank 1.15 1.14 49.9 Peer 1 61.5 0.78 0.72 0.62 0.70 0.50 Peer 2 57.6 0.39 Peer 3 33.7 0 10 20 30 40 50 60 70 FY 20 1H 21 FY 21 1H 22 Proporti
Slide 40: AMP Bank
AMP Bank Maintaining high quality loan book while continuing growth % of portfolio with a low Probability of Default (PD) has increased on a AMP Bank’s prudent risk appetite reflected in the move away from higher quarterly basis since 1H 21. LVR (scheduled balance on origination value) since 1H 20.
Slide 41: New Zealand Wealth Management
New Zealand Wealth Management The 3rd largest non-bank provider of KiwiSaver1 with A$4.9b in AUM 8.2% compound growth in KiwiSaver Default Non-Default Non-Default 5yr CAGR: 8.2% 5.8 5.1 4.9 4.7 Bank - 51.9% 3.8 3.6 AMP - 6.5% 3.2 Non-bank - 41.6% 1.0 1.0 1.1 1.0 0.9 0.0 0.0 2016 2017 2018 2019 2020
Slide 42: Helping people create their tomorrow
Helping people create their tomorrow Committed to a sustainable and equitable future, creating value for our stakeholders Customers Value created — Shareholder equity of A$4,479m comprises net Customer experience Digital disruption and security tangible assets (NTA) of A$1.28 per share Regulatory an
Slide 43: Important notice
Important notice Summary information This presentation has been prepared by AMP Limited (ABN 49 079 354 519) (“AMP"). It is a presentation of general background information about AMP’s activities current at the date of this presentation, which may be subject to change. The information is in a summar
Slide 44: Important notice (continued)
Important notice (continued) Financial data No offer or sale Investors should be aware that certain financial measures included in this The securities mentioned herein have not been, and will not be, registered under the presentation are ‘non-IFRS financial information’ under ASIC Regulatory Guide 2
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