1H12 Analyst Presentation.Pdf

Executive summary Actively driving – Underlying profit of A$491m, up 9% on 2H 11; net profit of A$383m, up 12% on 2H 11, reflecting resilient earnings growth business operations, strong cost control and delivery of integration synergies and cost – Business strength evident in growth in planner numbers, continued good sales results in AFS’s discipline, while contemporary products and platforms and strong operating performance in AMP Capital – investing in new Ongoing cost discipline, with controllable costs down 5% on 2H 11 growth – Integration exceeding expectations; synergy target upgraded to A$150m post tax opportunities – Business responding well to regulatory change and capitalising on market changes, including positioning in SMSF sector and strategic business and capital alliance with MUTB 1 – Strengthened capital position, with over A$2b in surplus capital above minimum regulatory requirements, up from A$1.5b at 31 December 2011; well positioned to meet new capital standards Note: In most instances 2H 11 has been used as the most appropriate prior period comparison, as both 1H 12 and 2H 11 include full six months of AXA. Section 1 1. On 1 March 2012, MUTB acquired a 15% minority interest in AMP Capital Holdings Ltd for A$425m. 2012 half year results | Page 2 Group overview Section 2 Group overview – key performance measures Interim dividend of 1H 12 2H 11 1H 11 12.5 cps, 55% Underlying profit A$491m A$450m A$459m 1 franked; payout Growth measures ratio 73% of AFS net cashflows 2 A$301m (A$675m) A$94m underlying profit Total retail on AMP platforms A$734m A$240m A$487m Total Aust Contemporary Wealth Mngmt A$647m (A$326m) A$464m AMP Capital external net cashflows 2 (A$1,345m) (A$795m) (A$371m) AFS value of risk new business 3 A$112m A$121m A$94m Investment performance 4 80% 69% 48% 5 Underlying return on equity 13.5% 12.9% 18.2% 1 1. 1H 11 underlying profit and RoE include only three months of AXA from 31 March 2011. 2. All cashflow comparatives include AXA for full six months. 3. Represents value of new business for AFS’s Australian and New Zealand risk businesses, including a restated six- month contribution from AXA in 1H 11. 4. Investment performance is on a three-year rolling basis, as this is the basis on which our investment professionals are remunerated. One year, three year and five year investment performances are shown on p34 of the 1H 12 Investor Report. Section 2 5. Excludes AXA Investment Managers. 2012 half year results | Page 4 Group overview – 1H 12 profit summary A$m 1H 12 2H 11 1H 11 1 AFS Contemporary Wealth Management 164 151 171 AFS Contemporary Wealth Protection 134 107 108 AFS Mature 76 77 76 AFS New Zealand 38 43 33 AMP Capital 45 2 38 45 BU operating earnings 457 416 433 Group office costs (31) (31) (26) Total operating earnings 426 385 407 Underlying investment income 113 100 83 Interest expense on corporate debt (48) (43) (39) AMP Limited tax loss recognition - 8 8 Underlying profit 491 450 459 Market adjustment 3 12 8 8 Other items 4 10 21 (17) Profit after income tax before AXA merger adjustments and 513 479 450 accounting mismatches AXA merger costs and accounting mismatches 5 (130) (137) (104) Net profit attributable to shareholders of AMP Limited 383 342 346 Net profit attributable to shareholders of AMP Limited has been prepared in accordance with Australian accounting standards. 1. 1H 11 includes only three months of AXA from 31 March 2011. 2. AMP Capital’s total operating earnings for 1H 12 are A$51m. This A$45m represents AMP Ltd’s 85% interest. MUTB owns the remaining 15%. See p29 of 1H 12 Investor Report for more details. 3. Includes market adjustments for investment income, annuity fair value and risk products. 4. Other items includes a provision for FoFA, Stronger Super and other regulatory costs; see slides 14 & 31, and p7 of Section 2 1H 12 Investor Report for more detail. 5. For more detail see chart 14. 2012 half year results | Page 5 Group overview – major drivers of underlying profit 520 Business 8 initiatives driving 15 (6) increase in 500 8 (8) 491 underlying profit (7) 8 480 23 460 450 440 A$m 420 400 2H 11 Controllable Volumes, AMP Capital Capitalised Underlying MUTB minority AMP tax loss Other 1H 12 underlying costs¹ primarily risk performance loss reversals² investment interest recognition underlying profit fees income, net of profit corporate debt 1. A$23m includes A$15m of merger cost synergies. 2. Reflects management actions on pricing to improve profitability of risk book; reflected in reversal of capitalised losses. Section 2 2012 half year results | Page 6 Business lines Section 3 AMP Financial Services – overview Tight cost control Key performance measures 1H 12 2H 11 Change and re-pricing Operating earnings (A$m) initiatives in risk Australian contemporary wealth management 164 151 +9% insurance drove Australian contemporary wealth protection 134 107 +25% higher operating earnings Australian mature 76 77 -1% New Zealand 38 43 -12% Controllable costs (A$m) 463 489 -5% CWM investment-related revenue to AUM (bps) 124 126 -2 bps AFS operating earnings of A$412m, up 9% on 2H 11, as a result of – more competitive business platform – strong, growing planner base and high quality, contemporary product set – growth in contemporary cashflows – management initiatives to improve profitability of risk insurance book, including better claims experience – strong cost performance reflecting cost synergies, ongoing cost control and seasonally lower first half costs relative to second half Little change in CWM margins reflecting minimal churn across book – CWM margins down 2bps from 2H 11 to 124 bps as change in product and fee mix partly offset by higher corporate superannuation profits – AMP expects margin compression on investment-related revenue to AUM of 3.5% - 4.5% pa (excluding SMSF) over MySuper implementation period to 2017 – compression more likely at higher end of range post 2014 Section 3 2012 half year results | Page 8 AFS – net cashflows Contemporary Net cashflows summary (A$m) 1 1H 12 2H 11 1H 11 products and AMP Flexible Super 1,289 1,526 1,474 platforms North 636 507 209 attracting 2 SMSF 414 120 82 improved flows in More traditional products and platforms 3 (1,605) (1,913) (1,278) a challenging market Total retail on AMP platforms 734 240 487 Total corporate superannuation 262 37 400 External platforms (349) (603) (423) Total Australian contemporary wealth 647 (326) 464 management Total Australian Wealth Protection and Mature (397) (507) (456) New Zealand 51 158 86 TOTAL AFS NET CASHFLOWS 301 (675) 94 Bank deposits (Supercash, Super and 804 1,142 263 Platform TDs) Bank deposits (retail) 626 478 498 1. Cashflow numbers for all three periods include full six months of AXA. 2. Includes Multiport and Super IQ. Section 3 3. Includes Summit, Generations, Synergy, closed AMP Flexible Lifetime Super range and retail investment products. 2012 half year results | Page 9 1.0 AFS – strong and growing adviser force Change Dec-11 to Australian planner Jun-12 Dec-11 Jun-11 Jun-12 numbers have AMP Financial Planning 1,724 1,653 1,566 71 grown 7% since Hillross 320 318 277 2 1H 11, including AMP Financial Planners 2,044 1,971 1,843 73 Futuro acquisition AXA/Charter Financial Planning 767 774 820 -7 Genesys Wealth Advisers 250 258 282 -8 ipac 144 140 127 4 Tynan Mackenzie 39 42 42 -3 Futuro Financial Services* 78 Jigsaw Support Services 252 242 233 10 AXA Financial Planners 1,530 1,456 1,504 74 Total Australia 3,574 3,427 3,347 147 AMP New Zealand 310 325 308 -15 AXA New Zealand 375 379 360 -4 Total financial advisers 4,259 4,131 4,015 128 – 147 net new advisers have joined AMP’s Australian networks since January 2012 – 11 external practices elected to join AMP Financial Planning in 1H 12 – 48 advice professionals graduated from Horizons Academy in 1H 12 * In March 2012, AMP acquired a 10% stake in Futuro Financial Services; this stake is expected to rise to 100% over five Section 3 years. 2012 half year results | Page 10 AMP Capital – overview Tight cost control Key performance measures (A$m) 1H 12 2H 11 Change and higher fee Operating earnings after minority interests 1 45 income drove Operating earnings including minority interests 51 38 +34% increase in Fee income 223 214 +4% operating earnings Performance and transaction fees 23 12 +A$11m Controllable costs 159 166 -4% AUM (A$b) 123 123 steady Investment performance – % of funds at or exceeding +11 percentage 80% 69% benchmark three years to period end points AMP Capital operating earnings of A$51m, up 34% on 2H 11, reflects: – higher internal management fees due to transfer of previously managed Alliance Bernstein funds in-house – higher performance and transaction fees (fees relating to the management of infrastructure funds are traditionally earned in first half) – higher seed pool income – tight cost management and integration synergy delivery Cost to income ratio target of 60% to 65% by 1H 14² 1. This represents AMP Ltd’s 85% interest; MUTB owns the remaining 15% (from 1 March 2012). See p29 of 1H 12 Investor Report for more details. Section 3 2. AMP Capital’s 1H 12 cost to income ratio was 68.2%. 2012 half year results | Page 11 Financial overview Section 4 Financial overview – summary A strong balance – Strong balance sheet with significant liquidity, undrawn facilities and low corporate gearing sheet means AMP – Maintaining tight control of cost base – Group-wide controllable costs down 5% on 2H 11 well positioned for – A$503m increase in total capital regulatory resources above minimum regulatory requirements in market volatility 1H 12 to A$2,046m and more onerous – Ongoing capital management initiatives to improve efficiency, reduce sensitivity to markets and provide capital standards capacity to manage a low interest rate environment – Implications of LAGIC well understood with an estimated impact on the life company statutory funds of around A$200m 1 – AMP expects the one off cost to the company of implementing the Future of Financial Advice, Stronger Super and other regulatory changes over the next 12 to 18 months to be in the range A$60m to A$75m 2 after tax, of which A$52m has been provisioned at 30 June 2012 .

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