Slide 1: Craig Dunn, Managing Director, AMP Australian Financial Services (AFS)
Slide 2: Positioning AFS for success
Positioning AFS for success Impact of the proposed demerger The five fundamentals of my business Looking forward
Slide 3: A more competitive AMP
A more competitive AMP Advice-Based Product Distribution Manufacturing AMP Financial Retirement Planning Savings : Risk Hillross insurance Banking Arrive Corporate Super AMP Gi ‘ Distribution Mature Products Shared Services
Slide 4: Simple, commonsense strategy
Simple, commonsense strategy Advice-Based Distribution to position AMP as the partner of choice for financial planners Product Manufacturing to deliver market competitive products at the lowest unit cost
Slide 5: Drawing a line in the sand
Drawing a line in the sand For AFS, AMP’s proposed demerger will: ¢ Provide a simpler, more transparent corporate structure to appeal to a broader group of investors * Ensure greater Board, management and market focus « Protect and enhance the Australian brand
Slide 6: The five fundamentals that make AFS an attractive business
The five fundamentals that make AFS an attractive business Proven distribution capabilities Substantial market share in key markets Proven capacity at lowering unit costs and effective capital management Real prospects for growth Resilient business, despite dented brand
Slide 7: Proven distribution capabilities
Proven distribution capabilities Significant share of advice market Multi-channel — With three dealer groups Growth options — New dealer groups (organic/inorganic) — Organic growth in planner numbers — Improvement in planner productivity Quality of advice — an ongoing priority
Slide 8: Substantial market share in key markets
Substantial market share in key markets Retail Super™ Corporate Retirement Unit Trusts* Super” Income* Source: * Plan for Life (DecO2) ““DEXX&R (Dec 02)
Slide 9: Good record on cost and capital management
Good record on cost and capital management Controllable Costs ($) ° ~j S x ® E 8 8 £ 2 s a ) oO £8 Controllable Costs 9=—Cost to Income Ratio
Slide 10: Real prospects for growth
Real prospects for growth Look through cycle — strong systemic growth Effective management of margins Contemporary product capabilities Platform strategy Distribution power is key
Slide 11: Resilient business, despite dented brand
Resilient business, despite dented brand Planner numbers largely stable Brand research shows resilience Retrenchments - but service levels have improved Management team believes in the future of AFS Outflows are up on 2002 by around 10% — Need to consider in industry context
Slide 12: Relatively stable quarterly net inflows to March 2003
Relatively stable quarterly net inflows to March 2003 Quarterly Retail Net Inflows (A$m) Retailex CMT # CMT Source: ASSIRT
Slide 13: AFS is well and truly fit for business
AFS is well and truly fit for business Tough right now, but longer term trends good AFS is a resilient business A simple, commonsense strategy Sound business fundamentals A more competitive business
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