Slide 1: ASX Announcement: Asian Investor roadshow
ASX Announcement 16 October 2006 Manager Company Announcements Office Australian Stock Exchange Level 4, 20 Bridge Street Sydney NSW 2000 Announcement No: 57/06 Manager Market Information Services Section New Zealand Stock Exchange Level 9, ASB Tower, 2 Hunter Street Wellington New Zealand Asian Inv
Slide 2: AMP — Investor discussion pack
AMP — Investor discussion pack Andrew Mohl — Chief Executive Officer Stephen Dunne Managing Director, AMP Capital Investors October 2006
Slide 3: Outline
Outline Market overview » AMP business model » Business performance » Capital management » People and culture = Outlook
Slide 4: Market overview
Market overview
Slide 5: Australian private pension market is a highly attractive market with mandated growth
Australian private pension market is a highly attractive market with mandated growth =» Compulsory superannuation framework > Contribution rate currently mandated at 9%, with coverage extending to 90% of Australian workforce* » Recent Budget initiatives make it clear superannuation is the Federal Go
Slide 6: Australian private pension market to triple and exceed all of Asia
Australian private pension market to triple in 10 years and exceed all of Asia 2005 Total US$1,452 billion 2015 Total US$3,744 billion Other countries Australia 1.7% 36.3% South Korea 2.2% Hong Kong 2.7% US$527.5b Singapore 47% Japan 52.4% Other countries 9.8% Australia 51.0% China HA OTT 3.6% nn In
Slide 7: Growth outlook for superannuation industry and key sectors for AMP is robust
Growth outlook for superannuation industry and key sectors for AMP is robust Self-managed funds (DIY) 170,057 Wrap Savings and investment 23,289 134,410 Corporate funds 62,214 Industry funds 95,303 24.8% Total industry - AUM * 734,129 13.3% Source: DEXX&R Market Projections Report, June 2006, based
Slide 8: AMP holds leading market positions
AMP holds leading market positions June 2006 June 2005 Market share - Australia ror mane Market Total Market Market market position share % market position share % size A$b {rank} size A$b (rank) 1 Funds under management A$billion nn HNN Mn) | Retirement income 68.5 2 12.4 Unit trusts excluding cash
Slide 9: AMP business model
AMP business model
Slide 10: Key drivers and enablers of AMP business model
Key drivers and enablers of AMP business model Six drivers Products & Cost Asset Distibution Platforms Efficiency Management Faeckaging Four enablers
Slide 11: AMP business model enables margin capture across the industry value chain
AMP business model enabies margin capture across the industry value chain Distribution — Products & Asset Dealer groups / planners platforms management Pricing - typical industry range for balanced growth fund AMP retail platform with AMPCI investment AMP retail platform without AMPCI investment Non
Slide 12: Powerful distribution engine at heart of business model
Powerful distribution engine at heart of business model (~ AMP Financial Planning Hillross, Arrive, Magnify Planner distribution NY Corporate Superannuation *» Focus o1 consult
Slide 13: Comparative advantage of AMP in planner distribution
Comparative advantage of AMP in planner distribution — scale, quality and tenure Number of Australian financial planners Adviser turnover — June 2004 to June 2005 June 2006 4800 AMPFP turnover 14% 4eo04 1553 Dealer groups surveyed 4400 4,234 Range 4% to 47% 4200 4,406 1,026 Upper quartile 23% 4000 9
Slide 14: Comparative advantage of AMP in corporate super
Comparative advantage of AMP in corporate super — scale, cost efficiency and downstream benefits « Market leader in employer sponsored master trusts — 19.4% market share* >» SignatureSuper grown to $4.1b in 20 months = Scale and cost efficiency create shareholder value >» Sticky administration / tru
Slide 15: Business performance
Business performance
Slide 16: Highlights of 1H Group performance
Highlights of 1H 06 Group performance » Encouraging progress on all five key performance indicators >» Underlying return on equity up from 22.9% to 26.6% > AFS value of new business’ up 22%; AFS embedded value’ up 12% in 1H 06 >» Operating earnings up 15% to A$342m > Cost ratio down from 41.9% to 40
Slide 17: Robust growth in open book while maintaining mature book profit streams
Robust growth in open book is being achieved while maintaining mature book profit streams 350 300 250 200 150 100 §0 ASm 04 Open business operating earnings Closed business operating earnings {AFS contemporary wealth management and (AFS mature, Cobalt/Gordian) wealth protection, NZ and AMP Capital)
Slide 18: Growth remains robust
Growth remains robust Assets under management # Group up 15% on 1H 05 to A$110b # AMPCI up 14% on 1H 05 to A$96b # AFS up 17% on 1H 05 to A$71b Net cashflows « AFS up from A$0.9b in 1H05 to A$2.8b # AMPCI net external cashflows A$1.1b in both 1H 05 and 1H 06 Risk premium income = Australian individu
Slide 19: Group cost ratio down to 40.1%
Group cost ratio down to 40.1% 600 46.5% 50 ¢ 43.9% snow iim “ 40.1% 46 500 <i ip 40 307 399 392 412 45 400 300 200 100 A$Sm 04 1H 03* 1H 04* 4H 05* 1H 06 Controllable costs sé Cast to income ratio * Some minor restatements to reflect a change in the definition of controllable costs
Slide 20: Underlying return on equity up to 26.6%
Underlying return on equity up to 26.6% and set to exceed 30% in 2007 4H 03* 1H 04 1H 05 1H 06 41H 06 modeiling full impact of 2006 capital return *Pre-demerger O~ Underlying return on equity
Slide 21: Major progress on goal to double the value of an investment in AMP
Major progress on 5 year goal to double the value of an investment in AMP from mid 2005 to mid 2010 40% change in 12 months from mid 2005 16.2 A$b Opening value — June 05 Dividends Capital return — Change in median Closing value* — median analysts’ (2H 05 + 1H 06) 1H 06 analysts’ valuation June 06 v
Slide 22: AMP profit sensitivities
AMP profit sensitivities # Operating earnings positively impacted by: > A$13m for 5% increase in international and Australian equities >» A$5m for 5% increase in AFS sales volumes > A$29m for 5% reduction in controllable costs > A$3m for 100bps fall in 10-year Australian bond yields *Refer Sensitivi
Slide 23: Business unit performance
Business unit performance
Slide 24: AMP Financial Services (AFS) — cost ratio falls to 36.1%
AMP Financial Services (AFS) — cost ratio falls to 36.1% 44.5% 400 o- 44.9% 45 nnn 38.6% 350 in 36.1% 40 + 35 300 281 274 250 200 150 100 50 A$m 04 1H 03° 1H 04* 1H 05* 1H 06 == Cost to income ratio “Some minor restatements to reflect a change in the definition of controllable costs
Slide 25: AFS — net retail cashflows and industry share
AFS — net retail cashflows and industry share AMP AMP rolling 12 month net cashflows (excl CMTs), AMP ranking % of industry net cashflows and AMP cashflows as % of industry total 6,000 4 r 18% r 16% 5,000 4 r 14% 4,000 5 r 12% b 10% 3,000 4 r 8% 2,000 7 r 6% i. 4% 1,000 5 r 2% Asm 0 + fee ee “+ 0% J
Slide 26: AFS — net retail cashflows vs. major competitors
AFS — net retail cashflows vs. major competitors Total retail managed funds (excl CMTs) quarterly net cashflows ($m) of six largest participants by FUM — marketer view ASm (219) AMP Group AXA Australia BT / Westpac Commonweaith / ING Australia National Australia Group Group Colonial Group Group i ML
Slide 27: Australian contemporary wealth management — a high growth, high return business
Australian contemporary wealth management — a high growth, high return business Contemporary wealth management 1H 06 1H 05 Operating earnings A$116m A$89m + 30% Controilabie costs‘ A$175m A$i172m + 2% Cost to income ratio 48.5% 54.4% - §.9 percentage points Net cashflows A$3,309m A$1,496m + 121% Per
Slide 28: Australian contemporary wealth protection — a solid growth, high return business
Australian contemporary wealth protection —a solid growth, high return business Contemporar Z 2 Change wealth protection 1H 06 1H 05 Operating earnings A$59m A$55m +7% Controllable costs A$31m A$33m -6% Cost to income ratio 22.2% 25.1% - 2.9 percentage points Individual risk annual A$403m $363m + 11
Slide 29: Australian mature — long tail, large scale, outstanding return business
Australian mature — long tail, large scale, outstanding return business Mature Change 1H 06 | 1H 06 Operating earnings A$92m | A$83m +11% Controllable costs A$30m | A$3im ~3% Controllable costs/AUM' 0.32% | 0.33% nla Net cashflows (A$564m) | (A$614m) + 8% Persistency 87.7% | 87.6% + 0.1 percentage p
Slide 30: New Zealand — a life risk-driven, high return business
New Zealand — a life risk-driven, high return business New Zealand Change 1H 06 1H 05 Operating earnings A$23m | A$23m Steady Controllable costs A$31m | A$26m + 19% Cost to income ratio 44.4% 40.7% + 3.7 percentage points Net cashflows A$10m i (A$53m) nla Risk annual premium | | income A$79m A$77m +
Slide 31: Value metrics — embedded value and value of new business
Value metrics — traditional embedded value (EV) and value of new business (VNB) @ 2% rk acount maa a ae AFS 12% 22% Contemporary wealth management 13% 20% Contemporary wealth protection 14% 29% Mature 15% 31% NZ (5%) 25% 1 Growth in EV is the return on embedded value (RoEV) before net transfers of c
Slide 32: AMP Capital Investors — a high growth, high return asset management business
AMP Capital Investors - a high growth, high return asset management business AMP Capital Investors Change 1H 06 1H 05 Operating earnings A$55m A$42m + 31% Fee income A$181m A$152m + 19% Controllable costs A$104m A$93m +12% Cost to income ratio 55.2% 58.4% - 3.2 percentage points Net external cashflo
Slide 33: AMPCI — volumes and margins expanding
AMPCI — volumes and margins expanding 100 93.7 14 90 12 80 70 10 60 8 50 6 40 30 4 20 2 10 Basis ASb 0 points FY 044 FY 05 1H 06 Average AUM in period mime Onerating earnings after tax - basis points * FY 03 excludes Listed Property Trusts AUM and profit earnings as these businesses were divested in
Slide 34: AMPCI — out-performance against benchmarks across all asset classes
AMPCI — out-performance against benchmarks across all asset classes Australian AUM 9 9 90% 39% 94% 94% 91% 86% Listed assets Infrastructure Private equity Property Future Total Directions Funds i Jun-06 BB Dec-05 % indicates assets under management meeting or exceeding benchmarks
Slide 35: Cobalt/Gordian — surplus capital begins to be released
Cobalt/Gordian — surplus capital begins to be released AgSm FY 03* FY 04* FY 05” 4H 06° | Minimum capital requirement Surplus capital held in licensed insurers Capital to be released in 2H 06 } Loans to Group office “Excludes capital held in non-licensed entities and capital held as deferred tax ass
Slide 36: Capital management and shareholder returns
Capital management and shareholder returns
Slide 37: Risk capital requirements substantially lower
Risk capital requirements’ substantially lower 16.7 A$b As at 31/12/2002 As at 31/12/2003 As at 31/12/2004 As at 31/12/2005 & Australia UK 1 Risk capital is the amount of economic capital AMP’s internal risk assessment determines is required, at a target confidence level, to cover aii possibie risks
Slide 38: AMP's financial strength metrics
AMP’s financial strength metrics 16.0 30 June 2006 ® 3 14.0 7 3 “yp 31 Dec 2005 oO ¥ 12.0 g j S 30 June 2005 e 10.0 o £ 2 807 31 Dec 2003 g * 34 Dec 2004 5 60 of 30 June 2004 4.0 30 June 2003 2.0 0.0 60% 50% 40% 30% 20% 10% 0% S&P gearing _. S&P indicative A range
Slide 39: Capital management strategy
Capital management strategy « Capital efficiency has been pursued by: >» leveraging the strong share market performance since early 2003 > growing the contemporary and asset management businesses that are relatively low in capital intensity > running off the more capital intensive mature life and Co
Slide 40: AMP Financial Services — profit and capital releases
AMP Financial Services — profit and capital releases AFS AFS underlying Investment Additional Cash transfer operating investment income market transfers!) from AFS ©° margins!) income(|?) adjustment?) 2000 322 258 243 176 999 2001 311 234 (94) (271) 180 2002 272 221 (258) 736 974 2003 368 169 42 461
Slide 41: Capital management initiatives and next steps
Capital management initiatives and next steps » First capital return of A$750m in June 2005 » Second capital return of A$750m in June 2006 « Third initiative - ordinary dividend payout ratio policy increased to 85% of underlying profit this year and franking rate also lifted to 85% «= Balance sheet
Slide 42: Dividends and capital returns since 2003
Dividends and capital returns since 2003 75+ 72 59 40 2003 2004 2005 2006* 15% franked - interim 75% franked 75% franked 85% franked 85% franked - final interim dividend @ Final dividend & Capital return *Final 2006 dividend will be advised at AMP’s full year results announcement in February 2007
Slide 43: Strong business performance and disciplined capital management driving total shareholder return
Strong business performance and disciplined capital management driving total shareholder return 140 4 a oA oot Fig Tig, Hh ie / nly 120 4 pape ca af@ ‘ if fr YY i 2 # 100 oy f g | ™ tnd rn i vA 4 ty EY of N 5 gf * @, a = uf sol ial 5 \ ji poe Fgh AMP total return mF ym 2 it . i - p bad 28% since Sep
Slide 44: People and culture
People and culture
Slide 45: Overview - 2006 culture survey
Overview - 2006 culture survey « A constructive culture is a key long term driver of high performing companies * One of the tools AMP has been using to measure culture since 1996 is the Organisational Culture Inventory (OCI) tool « OCl identifies an organisation’s culture as having one of three domi
Slide 46: AMP culture — increasingly constructive
AMP culture — increasingly constructive 1996 2006 N = 3,539 N = 2,786 ACTION Ne SATISFACTION HERDS _——~CONSTRUD 2 Tye Sry tt NG 4 - Ny, ISFACTION NEENe. i oe rer omell aH F + ORIENTA _ OY now nan ne03s— ~~ neuyuy SECURITY NEEDS Source: Human Synergistics NZ Limited 4 human Copyright © 2005. All righ
Slide 47: AMP culture — more constructive than finance industry as a whole
AMP culture — more constructive than finance industry as a whole Financial services industry comparison WACHddY “—~Wotuunauig 6088 Source: Human Synergistics international Overlay = Finance industry secunity weeps Copyright © 2008. All ights reserved
Slide 48: Outlook
Outlook
Slide 49: Medium term positioning of AMP is attractive
Medium term positioning of AMP is attractive « Retirement savings industry set to grow by over 10% pain next decade” « AMP holds top three positions in key product segments of this market > Retail superannuation >» Retirement incomes >» Corporate superannuation » Individual risk « AMP has strong com
Slide 50: Strategic focus centred on core business
Strategic focus centred on core business = Focus on “running the business better than it’s ever been run before” to drive shareholder value is working >» Capturing scale benefits from volume and market growth > Sustaining lowest unit cost position in the industry > Pursuing strong growth in our core
Slide 51: Medium term outlook
Medium term outlook * Encouraging results in all key performance indicators * Sound platform for future growth » Good industry, good operating environment, good business model « Sharp focus on the basics of our business >» The better we get at running the business, the more opportunities we find to
Slide 52: Appendix
Appendix
Slide 53: Organisational culture inventory (OCI) — measuring behaviour styles
Organisational culture inventory (OCI) — measuring 12 behaviour styles ACHIEVEMENT SELF- ACTUALISING HUMANISTIC- ENCOURAGING AFFILIATIVE Members are expected to set challenging but realistic goals and solve problems effectively Members are expected to gain enjoyment from their work and produce high