Slide 1: Annual results 2006
Annual results 2006 Andrew Mohil Chief Executive Officer 18 February 2007 Highlights « Key performance indicators » Underlying return on equity up 6 percentage points to 31.0% » Operating earnings up 16% to A$752m » Cost ratio down 1.6 percentage points to 39.4% » AFS value of new business up 17% to
Slide 2: Outline; Overview — 2006 full year profit summary
Outline Group overview Capital management » Business unit review Strategic outlook and summary Overview — 2006 full year profit summary FY 06 FY08 4 change Services (AFS) 607 515 DB sipitat Snvestors (AVEC: 145 22 225% CobalGordian 6T 74 OG BU operating earnings 788 684 +18% Group office costs {37}
Slide 3: Overview — underlying profit drivers
Overview — underlying profit drivers 28 a 80t sr0ur CobalsCarsion Coweaiakin——APS—~—CAMMPCI——ColinGovdenn ‘Uneipny Othe? sedeiying < nt oot ‘ir vale OFT earnings eanege avezonen Dividends and capital returns since 2003 Cents per share 2003 2004 2008 2006 45% franked - interim 75% tanked 75% tranked
Slide 4: Overview — growth remains robust
Overview — growth remains robust Assets under management ® Group up 17% to A$122b ® AMPCI up 16% to A$106b « AFS up 15% to A$76b Net cashflows ® AFS up 53% to A$3.5b « AMPCI external up 9% to A$2.4b Risk premium income « Australian individual risk up 9% to A$429m Overview — group cost ratios at new
Slide 5: Overview — underlying RoE above 30%
Overview — underlying RoE above 30% 35 30 31.0% all 26.0% — 18.4% % & FY OS FY 04 FY 6 site Underlying return on equity Goai to double the value of an investment in AMP from mid 2005 to mid 2009 progressing well 14.6 AS analysts* valuation? 5% change in 18 months ‘Opening value - June 08 median ‘Ope
Slide 6: Capital management
Capital management Total capital resources movements in FY 06 3,689 asm Total capitnt FY 06 profit Dividers paid Capital atu Reduction in Other movements Total capita! to toss dividends Group debt resources - 41 Dac 96 shareholders reinvested 41 Dac 96
Slide 7: Regulatory capital resources at end 2006
Regulatory capital resources at end 2006 Kean trom Total AMP ‘Aide Bovatt! ane Pinanelal Capital: Cobalt! Group Sordien to Gakny Services investors Gostian Gtalp office, Totsi capital Si ee 3.689 1ett 182 1788 290 et 1473 {405} resources Intangibles {641) 4650) {at {a¢7) {93} - ay . Tangible capital
Slide 8: Capital initiatives
Capital initiatives Capital management strategy since 2004 has driven: » A$600m reduction in group debt « Dividends per share up frorn 27c to 40c¢ and increase in payout ratio to 85% » A$2.25b in capital returns to shareholders, including proposed third capital return of A$750m in June 2007 » Propos
Slide 9: Business unit review
Business unit review : . ° AFS — operating earnings up 18% 42) {18} Te amp se vena aston
Slide 10: AFS — cost efficiency improving
AFS — cost efficiency improving 609. 72 557 eo op 1s $00 200 400 aw 300 es 200. 4G 300) Agr 9 FY 03" FY 04 FY 05" FY 08 E22 controtiable costs wi Cast to ine: = Cost to AUM ratio lelerments lo eefzct a ch AFS — strong growth in value metrics in FY 06 Malue of New Business’ (VNB) Return on Embedded V
Slide 11: AFS — cashflows
AFS — cashflows ® Cash inflows up 22% to A$13.7b >» AMP Financial Planning up 19% to A$6.9b » Hillross up 24% to A$. 9b » Corporate Super direct sales up 40% to A$2.9b * Cash outflows up 15% to A$10.2b » Contemporary wealth management up 25% to A$7.2b » Mature down 9% to A$2.0b » Persistency up 0.1
Slide 12: AFS net cashflows by wealth management product line
AFS net cashflows by wealth management product line on rolling 12 month basis AS AFS —- drivers of cashflows Mil I
Slide 13: AMPFP Enforceable Undertaking (EU) update
AMPFP Enforceable Undertaking (EU) update * fmplementation of four undertakings well advanced ® {increased customer numbers with inclusion of various classes of existing AMP clients as well as new super clients * About 35,000 customers in total will now be offered a review of their advice # Mailings
Slide 14: Australian contemporary wealth management — revenue, cost and earnings margin trends
Australian contemporary wealth management —~ revenue, cost and earnings margin trends * Average AUM grew 25% to $45.2b in FY 06 * AUM-related revenue to AUM ratio fell Sbps in FY 06 to 191 bps # Relatively faster growth in lower margin corporate super product reduced ratio by Gbps * AUM-related cont
Slide 15: Australian mature — a slowly declining, large scale, outstanding return business
Australian mature ~— a slowly declining, large scale, outstanding return business Mature hange FY 06 FY 65 Operating earnings AST9Om ABIT 1m +tt% Controllable costs AgGOrn AgGGm “8% Controllable costs/AUM* S2pps bps -4 basis points Net cashflows (A31,136m} JASL27Om) J Htt% Persistoncy 88.4% 87.3% +0
Slide 16: AMP Capital Investors — a high growth, outstanding return business
AMP Capital Investors ~ a high growth, outstanding return business AMPC! Change FY 66 FY 665 Operating earnings ASt15m Ag92m +28% Fee income AS385m A$328m +17 Controllable costs AS223m A$198m +13% Cost to income ratio 86.0% 57.8% ~1.8 percentage pointa External net cashflows AS2.4b A$2.2b +9% AUM A$
Slide 17: AMPCI — volumes and margins expanding
AMPCI — volumes and margins expanding 70 60.5 FY 03" FY 08" FY 05 FY 08 ESS Average AUM ix period “™" Operating earnings stter tax - basis points ied me FY Oo AMPCI—AUM up 16% driven by investment returns Opening AUM at 1 January 2006 ASS1.1b Australian extemal market flows 1.6 Asian distribution ch
Slide 18: AMPCI - out-performance against benchmarks
AMPCI - out-performance against benchmarks across most Australian asset classes Weighted AUM % at or above benchmark Bidec-06 Wioec.0s 20% 89% 4% 91% Listed assets Infrastructure Private equity Property Future Directions Totat ‘Aun funds stDec D6 = ASGZ.7D AS2.4b Ag Bb AS13.18 AG15.0b AG95.0b* einen
Slide 19: Cobalt/Gordian — operating earnings down 9%
Cobalt/Gordian — operating earnings down 9% 88 st agin FY 03 FY 05 Bin Elan Cobalt/Gordian — surpius capital now being released Asm FY 63 FY 04 FY 06 FY OS @ Minienum capital requirement 3) Surplus capital held in licensed insurers } Loans ts Group affice 1s ried lank assets: # 208
Slide 20: Strategic outlook and summary
Strategic outlook and summary Key drivers and enablers of AMP business model Bost Asset a as Packs Efficiency. Management ea Gee Bidaaly ay Six drivers Hasan PrOnUcts &
Slide 21: Cornerstone assumptions in strategic plan to double value
Cornerstone assumptions in strategic plan to double value over 5 years ~ ie grow value by 15% pa * Equity markets growing around 6% pa, net of dividends * Realising scale benefits from volume and market growth » 10%-plus pa growth in retirement savings and post retirement sectors! projected over per
Slide 22: Strategy remains operational excellence
Strategy remains operational excellence: “to run the business better than ever before” * Key strategic initiatives to enhance and strengthen the core of AMP’s business model: » Increasing planner productivity by leveraging process excellence skills and enhancing technology platform » Growing planner