Amp Limited · ASX:AMP
Amp — UBS Australian Financial Services Conference 2008
24 slides from Amp's conference presentation, Jun 25, 2008
Slide 1: ASX Announcement: Presentation by AMP Financial Services
ASX Announcement For personal use only 25 June 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
Slide 2: Driving growth in AMP Financial Services
For personal use only Driving growth in AMP Financial Services Craig Meller Managing Director 25 June 2008
Slide 3: Executive summary
Executive summary AMP Financial Services’s powerful business For personal use only model has driven average growth in operating earnings of 20% a year for past 5 years Business is well positioned in attractive, high growth market, with sharp focus on key growth driver: distribution Model is pr
Slide 4: Model has driven strong growth in profits over past years
Model has driven strong growth in profits over past 5 years Average annual growth rate in operating earnings of 20% For personal use only 800 against Australian equity market CAGR of 16% 6,340 6000 5,670 700 663 607 5000 600 4,763 515 4,051 500 4000 3,300 415 400 3,007 3000 368 300 272 2000 200 1000
Slide 5: Focused on attractive wealth management market in Australia
Focused on attractive wealth management market in Australia For personal use only Australian private pension market forecast to more than double by 2015 to US$1,936b 1 Supportive superannuation structure and environment: mandated system, tax incentives and ageing population Robust outlook for
Slide 6: Superannuation market by channel
For personal use only Superannuation market by channel (By FUM) Accountants / solicitors / stockbrokers / other 18% Financial planners 51% Employers 31% Supply-side constrained market Unmet demand for financial advice AFS has strong positions in two largest distribution channels Source: AMP an
Slide 7: AFS today – highly scaleable business in high growth industry
AFS today – highly scaleable business in high growth industry For personal use only Simple business structure focused on wealth management products, packaging, distribution and advice for individuals and businesses Competitive advantages in: Financial Planning, Advice & Services distribution foo
Slide 8: AFS's aligned planner channel has scale and is highly productive
AFS’s aligned planner channel has scale and is highly productive For personal use only 1,600 PIS 1,400 AMP Financial Planning Number of planners 1,200 1,000 Count 800 CBA FP 600 Millennium 3 MLC/Garvan Westpac NAB FP ABN AMRO Financial Wisdom 400 Genesys ANZ Suncorp Bridges Hillross 200 Godfrey Reti
Slide 9: Scale also delivers cost advantages
Scale also delivers cost advantages For personal use only Dealer costs per adviser (excluding adviser remuneration) (1) 76% of group median AMPFP Group median (1) This survey included 15 dealer group participants representing over 6,000 advisers 8 Source: Comparator Study, November 2007
Slide 10: AFS's employer channel is strong and growing
AFS’s employer channel is strong and growing Employer sponsored products by assets under management 10,000 For personal use only UniSuper (total) 9,000 Australian Super (ARF/STA) (total) 8,000 Net cash flow ($m) 4 years to 31/03/2008 7,000 SunSuper (total) AMP total retail and employer 6,000 AMP (to
Slide 11: Resilient business model
For personal use only Resilient business model 10
Slide 12: AFS well positioned to manage through current market environment
AFS well positioned to manage through current market environment More than half of AFS’s 2007 operating earnings came from businesses For personal use only largely insensitive to short-term equity market movements Earnings sensitivities set out in the 2007 AMP Investor Report remain current. A
Slide 13: Market share reflects resilience and strength
For personal use only Market share reflects resilience and strength March 2008 March 2007 December 2004 Market share - Australia Total market Market Market Total Market Market Total Market Market size A$b position share % market position share % market position share (rank) size A$b (rank) size A$b
Slide 14: Growth strategy
For personal use only Growth strategy 13
Slide 15: AMP is investing in distribution and enhanced products & services
AMP is investing in distribution and enhanced products & services to drive long-term growth For personal use only This investment is concentrated on 5 growth platforms 1. Growing planner capacity and broadening distribution 2. Expanding to Asia through AMP Capital Investors 3. Growing customers in h
Slide 16: AMP is investing in distribution and enhanced products & services
AMP is investing in distribution and enhanced products & services to drive long-term growth For personal use only This investment is concentrated on 5 growth platforms 1. Growing planner capacity and broadening distribution 2. Expanding to Asia through AMP Capital Investors 3. Growing customers in h
Slide 17: 1. Growing our planner capacity
1. Growing our planner capacity Supply constrained industry For personal use only AMP has 3.4 million customers, many of whom are currently under-serviced, particularly in Corporate Super Keys to future success in planner-based distribution: a. increase volume b. lift productivity c. improve quality
Slide 18: 1. Growing our planner capacity: Increasing volume
1. Growing our planner capacity Increasing volume For personal use only By boosting planner numbers through ¾ strong BAU recruitment & succession process (average age of AMPFP planners has reduced slightly from 46 at Dec 2001 to 45 at Dec 2007) ¾ new recruitment channel (over 2,000 applications fo
Slide 19: 1. Growing our planner capacity: Lifting planner productivity
1. Growing our planner capacity Lifting planner productivity For personal use only New financial planning software, expected to improve efficiencies by up to 30%, now rolled out to 22 practices ¾ A further 20 practices scheduled for roll out in July as part of pilot phase, with full roll out in Q4
Slide 20: 1. Growing our planner capacity: Improving quality
1. Growing our planner capacity Improving quality For personal use only Right customer offer to right customer segment, at the right time, delivered ¾ Consistently Standardised approach for specific customer segments Increased uniformity & automation achieved with new planner software ¾ Compli
Slide 21: 3. Growing customers in high value segments
3. Growing customers in high value segments Right customer offer to right customer at right time For personal use only Extensive review and research into Australian wealth management market in 2007 identified four key revenue pools for AFS: ¾ At retirement ¾ Small business builders ¾ Property-bias
Slide 22: 3. Growing customers in high value segments
3. Growing customers in high value segments AFS is building a solid position in ‘at retirement’ For personal use only segment, which has been a target since 2006 Good base in small business builders, but need to be more pro-active and focused HNW and property-biased wealth builders not been ac
Slide 23: Summary
For personal use only Summary 22
Slide 24: Summary
Summary Sharp focus on driving growth through For personal use only strengthening distribution and targeting high value customers Strong business model in highly attractive market driving sustainable growth in profits and value Proven resilience in current market climate 23
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