AMP LIMITED — Annual Report 2016

Mar 19, 2017

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2016 shareholder review

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AMP 2016 shareholder review 1

Our purpose

Our purpose is to help people own a better tomorrow We are here to help people own tomorrow in a way that is expert, effortless, proactive and personalised. With our expert financial advice, offers and solutions, we help our customers explore, plan, track and realise their goals so that they can own a better tomorrow.

AMP Limited ABN 49 079 354 519 All amounts are in Australian dollars. Information in this review is current as at 9 February 2017 The full AMP 2016 annual report is available at amp.com.au/2016annualreport

Dividend

Total dividend for 2016

28cents per share remained steady

The final dividend of 14 cents per share is to be paid on 31 March 2017 and will be 90% franked.

m $828

returned to shareholders in the form of dividends and dividend reinvestment plan shares for 2016.

Dividends cents per share

Final dividend Interim dividend

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30
20
10
0
2012 2013 2014 2015 2016
28 28
26
25
23 14 14
13.5
12.5
11.5
14 14
12.5 12.5
11.5
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You’re invited to an exclusive shareholder session

Join AMP online or in person for a free information session.

Hear from financial expert Paul Clitheroe AM on smart financial strategies for 2017.

When 9.30am (Sydney time) Thursday 11 May 2017 Where Centennial Hall in Sydney Town Hall, 483 George Street, Sydney, Australia Online View the webcast live and ask questions or view the archive at amp.com.au/smartfinancialstrategies

This event will be followed by the AMP 2017 AGM.

When 11.00am (Sydney time) Thursday 11 May 2017 Where Centennial Hall in Sydney Town Hall, 483 George Street, Sydney, Australia Online View the webcast live and ask questions or view the archive at amp.com.au/agm

1

AMP 2016 shareholder review

Our 2016 erformance p

Profit (loss) attributable to shareholders

m $344 net loss

The net loss is as a result of actions that were taken to stabilise our insurance business and reduce the earnings impact on the group. The loss includes largely one-off, mainly non-cash items which have not undermined the financial strength of the group.

$ million

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1,000
750
500
250
2016
0
2012 2013 2014 2015
$972m
$884m
$689m $672m
($344m)
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Underlying profit

m $486 down 56.6%

$ million

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1,000
750
500
250
0
2012 2013 2014 2015 2016
$1,120m
$1,045m
$950m
$849m
$486m
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Underlying profit is AMP’s preferred measure of profitability as it best reflects the underlying performance of the group. It is the earnings base on which the board determines the dividend payment. The main difference between profit (loss) attributable to shareholders and underlying profit comes from movements in investment markets and one-off costs.

2 AMP 2016 shareholder review

Net cashflows on AMP platforms

m $1,778 down 53%

Net cashflows reflect challenging domestic market conditions. There are early signs of recovery in cashflows in 2017.

Assets under management

b $240 up 6%

We now manage more money for our customers around the world.

Regulatory capital held above the minimum regulatory requirement

b $2.2 down 13%

AMP holds capital above the minimum requirement to protect customers, creditors and shareholders against unexpected losses. This is an indication of the strength of our business.

AMP Capital external net cashflows

m $967 down 78%

Strong flows into infrastructure and real estate asset classes were offset by challenging domestic market conditions.

Cost to income ratio

63.7% within target of 60%-65%

Cost growth in line with guidance, before impact of restructure costs and lower variable remuneration.

Underlying return on equity

5.6%

decreased 7.6 percentage points

The decrease largely reflects the impact of insurance claims experience and capitalised losses.

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AMP 2016 shareholder review

Our strate gy

Our purpose is to help people own a better tomorrow.

We are pursuing a clear strategy for long-term growth by tilting our investment to higher growth, less capital intensive businesses with strong positions in growing markets.

We are investing in our core Australian businesses to help our customers own tomorrow, reducing costs to continue growing profitably in a margin-compressed world, and expanding internationally through selected partnerships in China and Japan. We are also attracting strong new investment flows into real assets in Australia and globally.

Superannuation, retirement and financial advice

• Short Drive cashflows by: term – lifting productivity in our adviser network

• activating unadvised customers

• winning more corporate super mandates

• diversifying channels Sustain business efficiencies

Medium Continue to invest in digital term to give customers a greater choice of channels, including direct and robo advice

Scale up new goals-based advice model

Invest to maintain and enhance platform competitiveness Realise self-managed superannuation fund (SMSF) efficiencies from scale and drive organic growth

Invest to grow

Banking

Continue to activate our adviser network

Improve

the customer experience

Continue targeted pricing activity Continue to grow through the broker network

Invest to drive step change in operational capacity to support growth Maximise capital efficiency

Manage for value and capital efficiency

New Zealand

Investments

Insurance

Continue tapping Stabilise Drive earnings global investor earnings and and value appetite for release capital from strong investment expertise, through market particularly in reinsurance positions and real estate and Sustain continued infrastructure business efficiencies efficiencies Promote new insurance offer China: grow and Manage Tilt to extend the partnership for value capital-light with China Life and capital businesses efficiency

Japan: reframe and drive value from Mitsubishi UFJ Trust and Banking (MUTB) partnership Drive further international growth in Asia, Europe and North America

Focus on customers, costs and capital

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Messa e from the Chairman g

“2016 was a challenging year for AMP. The net loss we reported was largely driven by challenges in our insurance business and the actions that were taken to rebase and stabilise it going forwards.”

Catherine Brenner Chairman

Last year, we faced difficult operating conditions with significant headwinds due to deterioration in the insurance sector, as well as ongoing uncertainty around superannuation legislation. This was compounded by investment market volatility due to a slower global economy and geopolitical unrest, which delivered unexpected market disruption.

Despite a challenging year, your board remains confident that AMP is well set up for future success. Last year, your company delivered growth in AMP Bank and internationally through AMP Capital and AMP New Zealand, together with a stable performance from our superannuation and financial advice business. However, this was overshadowed by losses in our insurance business that were driven by extremely challenging operating conditions in the insurance sector. Action was taken to rebase this part of the business to provide greater earnings stability at group level, protect our balance sheet and free up capital.

Dividend and capital position

While 2016 was certainly challenging, AMP remains well capitalised and our underlying business is strong. At 31 December 2016 we held $2.2 billion in capital above minimum regulatory requirements. Our strong position is evident in our ability to maintain a steady dividend to return capital to shareholders and through an onmarket share buy-back of up to $500 million.

We are pleased to have delivered a total 2016 dividend of 28 cents per share, which represents a payout of 85% of our 2016 underlying profit. Our dividend payout ratio policy is to deliver a payout of 70 to 90% of underlying profit.

The final 2016 dividend of 14 cents per share will be franked at 90%, and we will continue to purchase dividend reinvestment plan shares on market so as to avoid diluting the value of existing shares.

Strengthening our board

In 2016 we were pleased to announce the appointment of four new directors to our board: Vanessa Wallace joined in March (and was elected at the 2016 annual general meeting (AGM)), Geoff Roberts in July, Mike Wilkins in September and Peter Varghese AO in October. Each of our new directors brings valuable skills and experience to the board to assist in the effective delivery of our strategy.

On behalf of the board, I would like to thank Professor Peter Shergold AC, who has served on the board since 2008 and who will retire as a director at the conclusion of the AGM. Peter’s contribution to AMP has been considerable and we thank him for everything he has done for our company over the past decade.

Your board is confident that AMP is taking the right actions and pursuing the best strategy to build on the strengths of our business for sustainable growth.

AMP 2016 shareholder review 5

Messa e from the CEO g

“2016 was a year in which challenging conditions in the insurance market and low-growth in superannuation and financial advice, overshadowed the performance of our bank, our New Zealand operations and our continued international growth through AMP Capital.”

Craig Meller Chief Executive Officer

We have taken actions to stabilise our insurance business and we have managed through some challenging conditions in our superannuation and financial advice businesses to deliver relatively steady results. Our capital position has remained strong, enabling us to deliver a steady dividend return to shareholders, as well as a capital return through an on-market share buy-back of up to $500 million. While the 2016 bottom line financial results are not the results we wished to deliver for our shareholders, our strong capital position and our positive business outlook provide a base for confidence for the future.

Looking ahead, we are focused on managing our costs, maintaining capital and continuing the investment in our business to become a truly customer centred company, while expanding internationally through AMP Capital. We are convinced that this will deliver better results for our customers and our shareholders over the long term.

Business momentum

Three years ago we committed to a strategy to drive stronger shareholder value by better helping our customers achieve their goals. We are giving our customers more options for how they interact with us, developing technology that supports a range of channels, and rolling out new approaches and platforms for financial advice. This is effectively the operating system that will support growth in our superannuation and advice business, whether that’s face-to-face, online or over the phone.

Our network of professional financial advisers is at the heart of our ability to help our customers reach their goals, and we continue to invest in our adviser network so that we can help more people more often to achieve their goals.

Through the new AMP Advice process we began rolling out last year, we are gaining deeper insights and developing stronger relationships with our customers. Through the hundreds of goals-based conversations we have had so far, the goals that come out on top for our customers are retiring right, becoming debt free and fixing their cashflow. These insights are invaluable in responding to the needs of our customers.

6 AMP 2016 shareholder review

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AMP Bank is a key component of our customer strategy, with debt management and home loan solutions both being important tools in helping customers achieve their goals. We have continued to grow AMP Bank, yearon-year, and we see significant potential to continue this growth through mortgage brokers and our aligned financial advisers. AMP Bank also enables us to build deep relationships with our customers by meeting a broad range of their needs, as part of our overall offer of products and solutions. Banking products such as the new Bett3r account and home loans are fundamental to our customers achieving many of their goals, so we have a great opportunity to grow the bank by integrating competitive banking products into goals-based solutions.

Our growth in international markets continued in 2016 through AMP Capital, with sustained global appetite for expertise in real estate, infrastructure and global equities, as well as enduring partnerships with national champions in China and Japan.

shopping centres in Perth, and Sydney’s recently completed 200 George Street and the planned Quay Quarter precinct.

Maintaining a sharper focus on managing our costs is a strategic priority for us to drive short-term performance. Retaining a rigorous focus on cost control ensures that we remain competitive and enables us to continue to invest in long-term growth.

Our purpose

We know that to deliver on our purpose to help people own tomorrow we will need to continue working hard to help customers realise their goals. We will do that through building better technology, processes, approaches and solutions; and by giving customers more options for how they access and use our products and services.

We are investing in our business to grow and reach more customers so that we can realise our growth potential and deliver growing and sustainable shareholder returns.

In 2016, AMP Capital completed a $670 million redevelopment of Queensland’s Pacific Fair leisure and shopping destination. Other major projects planned or underway include the redevelopment of Garden City and Karrinyup

AMP 2016 shareholder review 7

Our 2016 business erformance p

AMP is Australia and New Zealand’s specialist independent wealth management company. We are immensely proud of our 168-year history and the help we’ve shared with millions of customers in every part of our community.

Superannuation, retirement and financial advice

Helping customers reach their goals and save for retirement

– We are here to help customers achieve their goals and own tomorrow with quality financial advice, to help them retire right and plan for the future.

– We have 3,500 advisers in Australia and New Zealand, with over 3,000 advisers in Australia.

– In 2016, we introduced a new way to deliver quality financial advice to Australians through AMP Advice, where everything is centred on the personal goals of customers. It brings to life the benefits of financial advice for customers by focusing the entire process

on what they want to achieve. AMP Advice combines digital interaction with personalised expert advice to help customers explore, plan, track and realise their goals. We have opened 24 AMP Advice practices around Australia.

– In January 2016, we announced a new name and operating structure for our selfmanaged superannuation funds (SMSF) business, SuperConcepts. The business grew in 2016, both organically and through a number of strategic acquisitions; increasing our scale and efficiency in a rapidly growing market.

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Investments

Helping customers make smart savings and investment decisions

– AMP Capital helps customers invest in shares, fixed income, real estate and infrastructure as well as diversified, multimanager and multi-asset funds. It also manages a large portfolio of real estate and infrastructure assets including shopping centres, aged care facilities, airports, trains and pipelines.

– In 2016, this part of our business saw an increase in investments and delivered good investment returns. Despite volatility in the markets, 67% of the money we invested on behalf of clients met or exceeded their goals over the three years to 31 December 2016.

– AMP Capital has a 15% share in China Life AMP Asset Management (CLAMP), a rapidly growing Chinese fund manager. In just three years, CLAMP welcomed 800,000 retail investors and $23 billion in assets under management, and is the fastest growing new asset management company in China.

– We also partner with another national champion, this time in Japan with Mitsubishi UFJ Trust and Banking (MUTB), the trust banking arm of Mitsubishi UFJ Financial Group.

– In November 2016, AMP Capital’s Diversified Infrastructure Trust (ADIT) was ranked by Global Real Estate Sustainability Benchmark (GRESB) Infrastructure as the number one infrastructure fund globally for its environmental, social and governance performance. GRESB’s inaugural 2016 infrastructure report included submissions from 51 funds and 134 infrastructure assets from across 53 countries. ADIT was rated number one in the world and was the only infrastructure fund to receive a score above 50. This score is a combined ranking of the fund and its underlying assets, which include Melbourne Airport, Sydney’s M5 motorway and Powerco in New Zealand.

– AMP Capital now has 199 international institutional clients and has grown its assets under management in this area to around $18 billion, an increase of $1.7 billion on 2015.

– In October 2016, AMP Capital’s Multi-Asset Fund exceeded $1 billion in funds under management, with customer and adviser interest in the fund increasing significantly throughout the year.

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3,500
financial advisers
helping people
realise their goals
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$1b
funds under management
in AMP Capital’s
Multi-Asset Fund
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199
international
institutional
clients
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AMP 2016 shareholder review

Our 2016 business erformance p

Insurance

Supporting customers and their families in tough times

– AMP provides customers with disability, income protection and life insurance that can be held independently or as part of an individual or group’s superannuation fund.

– In October 2016, we announced two significant actions to address the insurance market conditions in Australia. The first action was a reinsurance arrangement with Munich Re to release up to $500 million of capital from AMP Life, and the second was to strengthen the best

estimate assumptions across both AMP Life and The National Mutual Life Association of Australasia. This resulted in a strengthened capital position, with AMP holding more than $2.2 billion in capital above minimum regulatory requirements by 31 December 2016.

– In 2016, we made $1,193 million in insurance payments to help customers in Australia and New Zealand who were experiencing tough times.

Banking

Helping customers buy a home and save for tomorrow

– AMP Bank provides residential and investment property home loans, deposit and transaction bank accounts and selfmanaged superannuation fund products. It also has a portfolio of practice finance loans for our financial advisers. AMP Bank distributes through brokers, AMP advisers, and direct to retail customers via phone and internet banking. In 2017, we will continue

building our capability to continue future growth from direct channels.

– AMP Bank continued to perform well, with operating earnings up 15%.

– We increased our home loan book by 13% in 2016 by providing over 9,500 new loans. Over 46,000 people have an AMP Bank home loan.

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12% $2.0b
of total KiwiSaver paid to customers in
market claims and maturities
from Australian
mature
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15%
increase in AMP
Bank operating
earnings
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AMP 2016 shareholder review

New Zealand financial services

Helping customers take control of their financial future

– AMP’s New Zealand business provides customers with tailored financial products and solutions directly and through a network of financial advisers. AMP New Zealand financial services has a market leading position in wealth management and wealth protection, in addition to being the market leader in advice.

– In 2016, operating earnings increased by $6 million to $126 million.

– In New Zealand, our business continues to grow its revenue base across the business, closely manage costs and evolve distribution channels to increase the reach of the direct business.

Mature insurance and superannuation

Expertly managing closed insurance and superannuation products

– The Australian mature business is managed to maintain high persistency, prudently manage asset and liability risk, achieve greater cost efficiency and maintain capital efficiency.

– The mature business is the largest closed life insurance business in Australia, with Australian mature assets under

management comprising 77% capital guaranteed products and 23% market linked products. All products in Australian mature are closed to new business with the exception of the Eligible Rollover Fund.

– We helped our customers by paying $2.0 billion in claims and maturities in 2016.

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More than
46,000
people have an
AMP Bank home loan
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$1,193m 5% in insurance increase in New payments Zealand financial helped our services operating customers earnings

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AMP 2016 shareholder review

AMP Limited Board

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Catherine Brenner

Independent Chairman BEc, LLB, MBA

Chairman since June 2016 and director since June 2010, Catherine is Chairman of the Nomination and Governance Committee and a member of the People and Remuneration Committee. She was also Chairman of AMP Life and NMLA and a member of their Audit Committees and Risk Committees until June 2016. Catherine is a former senior investment banker and corporate lawyer with experience in corporate advisory and equity capital markets. She is currently Director of Boral, Coca-Cola Amatil and SCEGGS Darlinghurst, and a Trustee of the Art Gallery of NSW.

Craig Meller

Chief Executive Officer BSc (Hons)

Chief Executive Officer (CEO) since January 2014, Craig is a Director of AMP Life, NMLA and AMP Capital Holdings. Craig joined AMP in 2001 and prior to becoming CEO was Managing Director of AMP Financial Services.

Patricia (Patty) Akopiantz

Independent Director BA, MBA

Director since March 2011, Patty is Chairman of the People and Remuneration Committee, and a member of the Risk Committee and Nomination and Governance Committee. She is also Chairman of AMP Bank and a member of its Audit and Risk Committees. Patty has over 25 years’ senior management and consultancy experience, primarily in the retail and consumer

industries in Australia and overseas. She is currently a Director of Ramsay Health Care and Belvoir St Theatre.

Holly Kramer

Independent Director BA, MBA

Director since October 2015, Holly is a member of the Audit Committee. Holly served as a Director of AMP Life and NMLA, and as a member of their Audit and Risk Committees from May 2016 until February 2017. She is a Director of Woolworths, Australia Post, Southern Phone Company and The GO Foundation.

Trevor Matthews

Independent Director MA

Director since March 2014, Trevor is a member of the Audit and Risk Committees. He is also Chairman of AMP Life and NMLA and a member of their respective Audit and Risk Committees. An actuary with more than 40 years’ experience in financial services, Trevor has expertise in life insurance, general insurance, wealth management, banking, investment management and risk. He is Chairman of 1st Group and the NSW State Insurance Regulatory Authority, a Director of Cover-More Group and a Fellow of the Institute of Actuaries in Australia and the UK.

Geoff Roberts

Independent Director BCom, MBA

Director since July 2016, Geoff is Chairman of the Audit Committee. He was a Director of AMP Life and NMLA, and a member of

12 AMP 2016 shareholder review

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the Audit Committee of each from July 2011 until March 2012. He has more than 30 years’ experience in financial services across Australia, Asia and Europe. Geoff is a Fellow of Chartered Accountants Australia and New Zealand.

Professor Peter Shergold AC

Independent Director BA (Hons), MA, PhD Director since May 2008, Peter is Chairman of the Risk Committee and a member of the Nomination and Governance Committee. He is also a Director of AMP Life and NMLA and a Director of AMP Bank. Peter is Chancellor and Chair of the board of trustees of Western Sydney University, Chairman of the National Centre for Vocational Education Research and the NSW Public Service Commission Advisory Board. He is also NSW Coordinator-General for Refugee Resettlement.

Peter Varghese AO

Independent Director BA (Hons)

Director since October 2016, Peter is a member of the Risk Committee. He is also a Director of AMP Capital Holdings and a member of its Audit and Risk Committee. Peter is Chancellor of the University of Queensland and has 38 years’ experience in public service, including senior positions in foreign affairs, trade policy and intelligence. Peter was made an Officer of the Order of Australia in 2010 for distinguished service to public administration. He was awarded

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AMP Limited Board

1. Catherine Brenner

2. Craig Meller

3. Patricia Akopiantz

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10
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1. Holly Kramer

2. Trevor Matthews

3. Geoff Roberts

4. Prof. Peter Shergold AC

5. Peter Varghese AO

6. Vanessa Wallace

7. Mike Wilkins

an Honorary Doctorate of Letters from the University of Queensland in recognition of his distinguished service to diplomacy and Australian public service.

Vanessa Wallace

Independent Director BCom, MBA

Director since March 2016, Vanessa is a member of the People and Remuneration Committee. She is also Chairman of AMP Capital Holdings and a member of its Audit and Risk Committee. Vanessa has over 30 years’ experience consulting to the financial services sector across Asia Pacific. Vanessa is a Director of Wesfarmers, a Member of the Chairman’s Council of the Australian Chamber Orchestra and a Member of the MS Research Australia Leadership Council.

Mike Wilkins

Independent Director BCom, MBA

Director since September 2016, Mike is a member of the Audit and Risk Committees. He is also a Director of AMP Life and NMLA, a member of their Audit Committees and Chairman of the Risk Committees of both boards. Mike has more than 30 years’ experience in financial services in Australia and Asia. He is a Director of QBE Insurance Group and a Fellow of Chartered Accountants Australia and New Zealand.

Further information on the AMP Limited Board is available at amp.com.au and in the AMP 2016 annual report at amp.com.au/2016annualreport.

AMP 2016 shareholder review 13

Remuneration

Remuneration at AMP is designed to align the interests of employees with the creation of value for shareholders.

Your board believes that remuneration should drive the delivery of AMP’s business strategy by achieving the right balance of motivation and challenge for our executives; encouraging them to both grow the business and deliver sustainable shareholder returns. In addition, the remuneration arrangements support the attraction and retention of talent within AMP. In 2016 the remuneration structure included fixed, short-term incentives (STI) and longterm incentives (LTI). Performance targets are set to support the delivery of AMP’s strategy, which in turn is designed to deliver value to customers and shareholders.

The board understands that there is increasing shareholder interest in the scale and structure of executive remuneration. That is entirely appropriate. We, too, believe that remuneration should be clearly aligned to the sustainable growth of our company and long-term returns to shareholders. This is important in a good year. It is even more critical in a challenging year.

To ensure that remuneration outcomes are aligned with AMP’s performance in 2016, no STI was paid to the CEO or key management personnel (KMP) executives for 2016 under the AMP group STI plan. Adam Tindall, AMP Capital’s CEO, is an exception as he participates in a separate incentive plan that’s aligned with the profit and performance of AMP Capital.

Board remuneration

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Value
Total fees Super- Total of share
and benefits [1] annuation remuneration holdings [2]
$’000 $’000 $’000 $’000
Catherine Brenner 2016 483 46 529 703
2015 395 38 433 492
Patricia Akopiantz 2016 352 33 385 328
2015 364 35 399 328
Holly Kramer 2016 290 27 317 233
2015 41 4 45 26
Trevor Matthews 2016 417 40 457 321
2015 398 38 436 372
Geoff Roberts 2016 114 11 125 214
2015 0 0 0 0
Peter Shergold 2016 393 37 430 319
2015 350 33 383 369
Peter Varghese 2016 70 7 77 38
2015 0 0 0 0
Vanessa Wallace 2016 260 25 285 353
2015 0 0 0 0
Mike Wilkins 2016 92 9 101 159
2015 0 0 0 0
Total [3] 2016 3,000 271 3,271
Total [4] 2015 3,078 255 3,333
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• 1 Total fees and benefits includes board and committee member fees and other short-term benefits as per the statutory table in section 6.2 of the remuneration report in the 2016 annual report.

• 2 The 2016 value of shareholdings was calculated using the 31 December 2016 closing share price of $5.04 and the 2015 value was calculated using the 31 December 2015 closing share price of $5.83.

• 3 Totals for 2016 include payments for former Non-executive Directors Simon McKeon, Brian Clark and John Palmer.

• 4 Totals for 2015 include payments for former Non-executive Directors Simon McKeon, Brian Clark, Paul Fegan and John Palmer.

AMP 2016 shareholder review 15

Executive remuneration

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Cash Performance
Fixed short-term rights and Termination Total
remuneration [1 ] incentive share rights [2] payments [3] remuneration
$’000 $’000 $’000 $’000 $’000
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Craig Meller Chief Executive Offcer	2016 2015	1,958 1,855	– 1,260	2,838 2,164	– –	4,796 5,279
and Managing Director
Pauline Blight-Johnston	2016	820	–	892	291	2,003
Group Executive, Insurance	2015	810	428	674	–	1,912
and Superannuation
Robert Caprioli	2016	799	–	848	436	2,083
Group Executive, Advice and Banking	2015	772	415	631	–	1,818
Gordon Lefevre	2016	1,021	–	1,035	–	2,056
Chief Financial Offcer	2015	1,276	622	555	–	2,453
Matthew Percival	2016	611	–	710	–	1,321
Group Executive, Public Affairs	2015	608	321	678	–	1,607
and Chief of Staff
Craig Ryman Chief Information Offcer	2016 2015	650 622	– 337	405 192	– –	1,055 1,151
Paul Sainsbury Chief Customer Offcer	2016 2015	896 920	– 585	1,139 1,096	– –	2,035 2,601
Brian Salter	2016	848	–	940	–	1,788
General Counsel	2015	827	441	907	–	2,175
Wendy Thorpe	2016	724	–	871	1,000	2,595
Group Executive, Operations	2015	632	305	545	–	1,482
Adam Tindall4	2016	824	1,271	643	–	2,738
Chief Executive Offcer, AMP Capital	2015	200	285	98	–	583
Fiona Wardlaw	2016	727	–	820	–	1,547
Group Executive, People and Culture	2015	725	393	769	–	1,887
Total	2016	9,878	1,271	11,141	1,728	24,018
Total5	2015	10,676	6,850	10,096	–	27,622

1 Fixed remuneration includes cash salary, other short-term benefits, superannuation benefits and other long-term benefits as per the statutory remuneration table in section 7.1.2 of the remuneration report.

• 2 The minimum future value for these awards is nil and the maximum amount expensed by AMP is the fair value at grant date. The fair value has been calculated as at the grant date by external consultants, using a Monte Carlo simulation for the total shareholder return (TSR) performance rights and a discounted cash flow methodology for the return on equity (RoE) performance rights. The fair values have been discounted for forgone dividends and for the TSR performance rights, the risk of performance conditions not being met. The value of the award made in any year is amortised over the vesting period.

• 3 Termination payments are the severance payments that will be made to Pauline Blight-Johnston, Rob Caprioli and Wendy Thorpe at the end of their notice periods in 2017. They have been disclosed as they relate to the termination of their KMP roles.

• 4 Adam Tindall’s remuneration disclosure in 2015 reflects the period from 1 October 2015 when he was appointed as CEO, AMP Capital.

• 5 Totals for 2015 include payments for former executive Stephen Dunne.

16

AMP 2016 shareholder review

Important dates for shareholders

May 2017

• 11 Shareholder information session Annual general meeting First quarter cashflows and assets under management (AUM) announcement

August 2017

• 10 2017 half year results

• 23 Ex-dividend date for 2017 interim dividend (Australia and New Zealand)

• 24 Record date for 2017 interim dividend

• 25 Dividend reinvestment plan record date for 2017 interim dividend

September 2017

• 29 Payment date for 2017 interim dividend

October 2017

• 27 Third quarter 2017 cashflow and AUM announcement

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17

AMP 2016 shareholder review

Contact us

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33 Alfred Street Sydney NSW 2000 Australia

T +612 9257 5000 F +612 9257 7178 W amp.com.au Company Secretary: David Cullen

AMP investor relations

Level 21, 33 Alfred Street Sydney NSW 2000 Australia

T +612 9257 9009 F +612 8843 8255 E shares@amp.com.au W amp.com.au/shares Head of shareholder services: Marnie Reid

AMP products and policies Australia

T 131 267 E askamp@amp.com.au

New Zealand

T 0800 808 267 E service@amp.co.nz

International

T +612 8048 8162

AMP share registry

Australia

AMP share registry Reply Paid 2980 Melbourne VIC 8060 T 1300 654 442 F 1300 301 721

New Zealand

AMP share registry PO Box 91543 Victoria Street West Auckland 1142 T 0800 448 062 F 09 488 8787

Other countries AMP share registry GPO Box 2980 Melbourne VIC 3001 Australia T +613 9415 4051 F +612 8234 5002

E ampservices@computershare.com.au

AMP is incorporated and domiciled in Australia

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@AMP_AU

18 AMP 2016 shareholder review