AMP LIMITED — Capital/Financing Update 2019

Aug 7, 2019

8 August 2019

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AMP Limited today releases several significant announcements to reposition AMP as a simpler, clientled, higher growth and higher return business.

AMP strategy : New strategy to reinvent AMP as a contemporary wealth manager. Three-year investment program to fund growth, cost reductions and fix legacy issues. Strategy to build on core strengths and market positions with whole-of-wealth solutions. Cost reduction program to achieve A$300 million annual run-rate savings by FY 22.

Portfolio update (AMP Life, New Zealand wealth management) : Revised agreement to sell AMP Life to Resolution Life to help fund new strategy, simplify AMP and shift capital towards highergrowth businesses. Consideration of A$3.0 billion (including A$2.5 billion in cash and A$500 million equity interest in Resolution Life Australia1). Sale expected to complete in 1H 20. AMP to further localise New Zealand wealth management and explore options to divest.

1H 19 Results : Underlying profit of A$309 million demonstrates strength of AMP Capital, resilient performance from AMP Bank. Client remediation on track for delivery on time and in line with initial estimate.

Impairment : AMP recognised a predominantly non-cash impairment of A$2.35 billion (post tax) to reset the business, particularly Australian wealth management, and clean up the balance sheet; goodwill writedowns reflect new strategy with an approximate capital impact of A$139 million (post tax).

Capital raising: A$650 million capital raising via fully underwritten placement to institutional investors and additional share purchase plan for eligible retail investors. Proceeds used to commence the immediate implementation of new strategy, fund ongoing growth in core businesses, provide balance sheet strength ahead of AMP Life sale.

Capital position: Level 3 eligible capital above minimum regulatory requirements (MRR) A$1.7 billion at 30 June 2019. Post the sale of AMP Life and the capital raising, the proforma eligible capital above MRR is expected to be A$2.6 billion. AMP anticipates the excess above target surplus will first be used to fund delivery of new AMP strategy. Beyond this, AMP will assess all capital management options with the intent of returning the excess above target surplus to shareholders, subject to unforeseen circumstances.

1 Resolution Life NOHC Pty Ltd

Public Affairs T 02 9257 6127 E media@amp.com.au W AMP.com.au/media AMP_AU

AMP Limited 33 Alfred Street, Sydney NSW 2000 Australia ABN 49 079 354 519

New strategy to reset AMP...2

Dividend : The AMP Board has resolved not to declare a first half 2019 dividend, maintaining a consistent approach to capital management until the completion of the sale of AMP Life. Following completion, the Board intends to target a dividend payout ratio of 40-60 per cent of net profit after tax adjusted for non-cash items. The payment of any dividend will remain subject to the performance of the group and progress against the new strategy.

Full details of each initiative are provided in separate ASX releases with the investor pack supplied.

AMP Chief Executive Francesco De Ferrari said:

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-risk the business.

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a predominantly nonand AMP Bank, during the half.

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d the impact

of the Protecting Your Super legislation in Australia on both the wealth protection and mature continue to retain the terms and conditions of their announced today also provides an increased cash component and increased certainty of execution.

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transformational strategy, which creates a simpler, higher-growth and higherfocused on clients and ensures that our balance sheet will be unquestionably strong.

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eeds with

whole-of-wealth solutions including banking. We will continue to grow AMP Capital through differentiated capabilities and international growth opportunities.

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A$1.3 billion program to invest in this

transformation, which is focused on growth, cost reduction and tackling legacy issues. The business will be underpinned by a client-led, entrepreneurial and accountable culture.

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-term value creation. ”

Media enquiries Investor enquiries Lachlan Johnston Howard Marks Mobile: +61 466 026 702 Phone: +61 2 9257 7109 Catherine Woods Michael Vercoe Mobile: +61 477 320 333 Phone: +61 2 9257 4244

AMP Limited ABN 49 079 354 519

New strategy to reset AMP...3

Important information

This announcement is being issued contemporaneously with other announcements by AMP. This announcement is subject to appears on slides 56 to 58 in the 2019 half year results and AMP strategy presentation dated 8 August 2019 with any necessary contextual changes. The securities mentioned herein have not been, and will not be, registered under the United States Securities Act of 1933, as amended

sold in the United States absent registration or an exemption from the registration requirements of the U.S. Securities Act.

AMP Limited ABN 49 079 354 519