Amp Limited · ASX:AMP
Amp — Macquarie Capital Securities Conference (May 2008)
28 slides from Amp's conference presentation, May 9, 2008
Slide 1: ASX Announcement: Presentation by CEO to Macquarie Capital Securities Conference
ASX Announcement For personal use only 9 May 2008 Manager Manager Company Announcements Office Market Information Services Section Australian Stock Exchange New Zealand Stock Exchange Level 4, 20 Bridge Street Level 2, NZX Centre, 11 Cable Street Sydney NSW 2000 Wellington New Zealand Announcement N
Slide 2: Growing AMP
For personal use only Growing AMP Craig Dunn Chief Executive Officer 9 May 2008
Slide 3: Executive summary
Executive summary AMP is a financially strong company with a resilient For personal use only business model We are pursuing a focused growth strategy capitalising on ¾ Strong, long-term growth economies ¾ Attractive wealth management markets ¾ AMP’s competitive positioning Our ongoing investme
Slide 4: Outline
Outline Current market For personal use only Market fundamentals Competitive positioning Growth strategy Summary 3
Slide 5: Current market
For personal use only Current market 4
Slide 6: AMP well positioned to manage through current market conditions
AMP well positioned to manage through current market conditions Global market volatility For personal use only ¾ 44% of 2007 BU earnings largely immune to short-term investment volatility ¾ Low cost ratios moderate impact of any potential profit decline relative to higher cost competitors ¾ Shareh
Slide 7: Underlying cashflow trends positive
Underlying cashflow trends positive Q1 2008 net cashflows of $129m, compared to $753m in Q1 For personal use only 2007 – excluding corporate super mandate wins, net cashflows of $119m compared to $341m in Q1 2007 ¾ Net cashflows up 54% in contemporary wealth protection; up 25% in mature; and signi
Slide 8: Wealth management segments resilient in previous market downturn
Wealth management segments resilient in previous market downturn For personal use only Organic growth* of total market segments 25% 7,000 6,000 20% 5,000 15% Organic growth % All Ords Index 4,000 10% 3,000 5% 2,000 0% 1,000 -5% 0 Mar- Sep- Mar- Sep- Mar- Sep- Mar- Sep- Mar- Sep- Mar- Sep- Mar- Sep-
Slide 9: Market fundamentals
For personal use only Market fundamentals 8
Slide 10: Australian and Asian economies well positioned globally
Australian and Asian economies well positioned globally For personal use only Real GDP growth - Australia, China, Eurozone, US 14 12 % growth year on year 10 8 China 6 Australia 4 2 Eurozone US 0 Mar-95 Mar-97 Mar-99 Mar-01 Mar-03 Mar-05 Mar-07 9
Slide 11: Attractive wealth management market in Australia
Attractive wealth management market in Australia For personal use only Australian private pension market forecast to more than double by 2015 to US$1,936b1 Supportive superannuation structure and environment: mandated system, tax incentives and ageing population Robust outlook for key market s
Slide 12: Significant funds management opportunities in Asia
Significant funds management opportunities in Asia Record growth of pension industry For personal use only ¾ Asian private pension market forecast to double by 2015 to US$2,178b – China expected to grow by more than 6 times1 Shift from savings to investments ¾ During next 5 years, up to US$300b
Slide 13: Competitive positioning
For personal use only Competitive positioning 12
Slide 14: AMP holds leading market positions in Australia
AMP holds leading market positions in Australia For personal use only December 2007 December 2006 Market share - Australia Total market Market Market Total Market Market size A$b position share market position share (rank) % size A$b (rank) % Funds under management ' Superannuation including rollove
Slide 15: Three key channels to superannuation: employers, planners and direct
Three key channels to superannuation: employers, planners and direct For personal use only Superannuation market by channel (by FUM) Accountants / solicitors / stockbrokers / other 17.6% Financial planners 51.1% Employers 31.3% Source: AMP analysis and estimates based on data from APRA Quarterly Sup
Slide 16: Aligned planner model has scale and is highly productive
Aligned planner model has scale and is highly productive For personal use only 1,600 PIS 1,400 AMP Financial Planning Number of planners 1,200 1,000 Count 800 CBA FP 600 Millennium 3 MLC/Garvan Westpac NAB FP ABN AMRO Financial Wisdom 400 Genesys ANZ Suncorp Bridges Hillross 200 Godfrey RetireInvest
Slide 17: Strong position in employer channel
Strong position in employer channel AMP fastest growing employer super provider For personal use only Employer sponsored products by assets under management 6,000 Net cashflow growth ($b) Dec 2003 to Dec 2007 AMP (total) 5,000 AMP SignatureSuper 4,000 Mercer 3,000 CFS FC NAB (total) 2,000 BT (total)
Slide 18: Leading specialist investment manager
Leading specialist investment manager AMP Capital Investors one of top three investment managers in For personal use only Australia / New Zealand with $111b* in assets under management Specialist property and infrastructure investment manager ¾ Market leader in global property** Focused on dev
Slide 19: Growth strategy
For personal use only Growth strategy 18
Slide 20: Strategy to invest in distribution and enhanced products & services
Strategy to invest in distribution and enhanced products & services to drive long-term growth For personal use only AMP’s investment aimed at driving strong value growth 1. Growing planner capacity and broadening distribution 2. Expanding to Asia through AMP Capital Investors 3. Growing customers in
Slide 21: Growing our planner capacity and broadening distribution
1. Growing our planner capacity and broadening distribution For personal use only Growing planner numbers Planners numbers up 7.1% at FY 07 1,300 applications for 96 places to date at Horizons Academy Improving planner productivity Extending paraplanning services and increasing paraplanners
Slide 22: Growing our planner capacity and broadening distribution (channels)
1. Growing our planner capacity and broadening distribution For personal use only Developing complementary channels Ongoing roll-out of New Zealand Kiwisaver and PIE initiatives: first quarter 2008 New Zealand net cashflows up $33m on 2007 Building AMPCI presence in Australian retail market: ¾ C
Slide 23: Expanding to Asia through AMP Capital Investors
2. Expanding to Asia through AMP Capital Investors For personal use only Expand Asian distribution channels and alliances AMPCI products distributed in 5 Asian countries: Japan, Taiwan, Singapore, Malaysia and Korea Appointed Head of Institutional Business, Japan; and Head of Distribution, South
Slide 24: Evergreen goal to double value of investment in AMP every five years
Evergreen goal to double value of investment in AMP every five years For personal use only Top quartile TSR performance Requires doubling the value of an investment in AMP every 5 years Operating earnings Dividend payout ratio Ongoing capital growth of 10-12% CAGR policy of 85% of underlying initiat
Slide 25: Summary
For personal use only Summary 24
Slide 26: Summary
Summary AMP is strategically well positioned for the For personal use only medium term Significant opportunities to grow – supported by ongoing investment in 2008 Investment for growth balanced with prudent approach to managing through current market conditions Medium term goal to double the
Slide 27: Appendix
For personal use only Appendix 26
Slide 28: AMP earnings sensitivities
AMP earnings sensitivities Investment For personal use only A$m Operating earnings Total income Total Group CWM CWP Mature NZ AMPCI Total AFS Office Economic variables 10% Ï in Australian equities 10 - 3 - 13 6 19 26 45 10% Ð in Australian equities1 (10) - (3) - (13) (6)² (19) (21) (40) Business var
AMP — Macquarie Capital Securities Conference (May 2008) on 6ix