AMP LIMITED — Interim / Quarterly Report 2009

Aug 19, 2009

AMP Limited ABN 49 079 354 519

ASX Appendix 4D for the Half Year Ended 30 June 2009

The information contained in this document should be read in conjunction with the AMP Limited Directors' Report and Financial Report for the half year ended 30 June 2009 and the AMP Limited Annual Report for the year ended 31 December 2008 and any public announcements made by AMP Limited and its controlled entities during the year in accordance with the continuous disclosure obligations arising under the Corporations Act 2001 and the ASX Listing Rules.

AMP LIMITED

ASX Appendix 4D

For the half year ended 30 June 2009

RESULTS FOR ANNOUNCEMENT TO THE MARKET

2009 2008 Half year ended 30 June	%
	movement
Financial results $m $m
Revenue from ordinary activities (1) 1,188 (4,678) Profit from ordinary activities after tax attributable to members (2) 362 366 Net profit for the period attributable to members (2) 362 366 330 278 Netprofit before accountingmismatches (2)	N/A -1% -1% 19%

Notes

(1) Revenue (losses) from ordinary activities includes amounts attributable to shareholders, policyholders and external unitholders. The amount is the aggregate of premium and related revenue of $510m (2008: $493m), fee revenue of $621m (2008: $804m), other revenue of $173m (2008: $164m) and net investment losses of $116m (2008: $6,139m) as detailed in Note 3 of the AMP Limited Financial Report.

• (2) As explained further in Note 1(c) of the AMP Limited Financial Report, accounting mismatches arise because the recognition and measurement rules for certain policyholder assets differ from the recognition and measurement rules for the actual liability to policyholders in respect of the same assets. These mismatches result in policyholder asset movements impacting the net profit for the period attributable to members and increased volatility of the reported profit.

		Franked
	Amount per	amount per
	security	security
Dividends	(cents)	(cents)
Interim dividend (franked to 50% at tax rate of 30%)
- Interim dividend	14	7.00
The record date to determine entitlements to the interim dividend	11-Sep-2009
The date the interim dividend is payable	16-Oct-2009

AMP Limited offers a Dividend Reinvestment Plan under which shareholders who have a registered address in, and are residents of, Australia and New Zealand are invited to reinvest part of any dividends receivable in additional shares. The price of the shares issued under the plan is the market price of the shares with a 2.5% discount as defined in the plan rules rounded down to the nearest one cent.

	Half year ended 30 June	Half year ended 30 June
	2009	2008
Net tangible assets per ordinary share	A$	A$
Net tangible assets per ordinary share	0.67	0.42

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AMP LIMITED

For the half year ended 30 June 2009

ASX Appendix 4D

COMMENTARY

AMP is a company focused on helping people manage their finances so they can enjoy the future they want. It is a leading wealth management company operating in Australia and New Zealand, with selective investment management activities in Asia.

AMP is financially strong, with a resilient business model. This business model is built on a pre-eminent brand; a low-cost and scaleable manufacturing platform; a large, aligned planner channel; a broadly-based asset management and packaging business; and cost and capital efficiency.

AMP's statutory profit attributable to shareholders of AMP Limited for the half year ended 30 June 2009 was $362 million, compared to $366 million for the previous corresponding period. Basic earnings per share for the half year ended 30 June 2009 on a statutory basis was 18.2 cents per share (1H08: 19.7 cents per share).

Underlying profit is AMP’s preferred measure of profitability for our business as it removes investment volatility. Directors use underlying profit as the primary determinant of dividend decisions. Continuing difficult economic conditions have led to a 16% decrease in underlying profit to $367 million for the half year ended 30 June 2009 from $437 million (on a comparable basis) for the half year ended 30 June 2008. On an underlying basis, earnings per share was 18.3 cents per share (1H08: 23.3 cents per share).

AMP’s performance against its four key performance measures was as follows:

• Underlying return on equity decreased by 8.9 percentage points to 31.6%.

• Underlying profit down 16% to $367 million.

• 32% of AUM met or exceeded benchmark over the 12 months to 30 June 2009; 55% for the six months to 30 June 2009.

• Growth measures (compared to the previous corresponding period):

• Net cashflows in AMP Financial Services increased to $865 million from $760 million, and external net cashflows in AMP Capital Investors decreased to $192 million from $369 million.

• o Value of risk new business increased 7% to $47m.

AMP experienced overall investment losses attributable to shareholders, policyholders, external unitholders and minority interests for the half year ended 30 June 2009, although considerably lower losses than first half of 2008. The vast majority of investment returns are attributable to wealth management products where the shareholder is not directly exposed to changes in asset values.

Total AMP group assets under management were $104 billion at 30 June 2009, a decrease of 1% from $105 billion at 31 December 2008.

Capital management

Equity and reserves of the group increased to $2,248 million at 30 June 2009 from $2,037 million at 31 December 2008 as a result of additional share capital issued under the Dividend Reinvestment Plan, 30 June 2009 profits and other movements in reserves and contributed equity, partially offset by dividends paid up to 30 June 2009.

In April 2009 AMP raised $287 million from the issue of listed AMP Notes. The Notes were issued as part of AMP group’s ongoing funding and capital management strategy. The funds raised were used to optimise the efficiency of AMP’s capital mix, meet general funding requirements and support the refinancing of subordinated debt.

AMP’s capital strategy remains focused on enhancing its already strong capital position to maintain flexibility to grow in the current climate. AMP aims to have a capital buffer in excess of minimum regulatory requirements. The AMP group remains soundly capitalised with a surplus capital position of $1,125 million above the minimum regulatory capital requirement at 30 June 2009.

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AMP LIMITED

ASX Appendix 4D

For the half year ended 30 June 2009

AMP has declared an interim dividend of 14 cents per share, franked to 50%. This takes AMP's dividend payout ratio to 77% of underlying profit for the half year ended 30 June 2009. AMP’s franking rate reduced as a result of a fall in taxable profits for the period. Directors use underlying profit as the primary determinant of dividend decisions rather than taxable income; and this may impact the franking rate.

AMP offers a dividend reinvestment plan (DRP) for shareholders. AMP will continue to offer a discount of 2.5% to DRP participants. Participation in the current DRP will be partially underwritten to approximately 75%.

Impact of accounting mismatches on profit

During the year, the aggregate impact of accounting mismatches increased the net profit attributable to the shareholders of AMP Limited by $32 million from $330 million to $362 million. These accounting mismatches drove a 10% increase in net profit although they have no impact on cash flow and value. Further details on accounting mismatches is provided in the accounting policies Note 1(c) in the Financial Report

The accounting mismatches arise in respect of:

• gains and losses on ‘treasury shares’ (2009: gain $12 million; 2008: gain $59 million),

• gains and losses on investments in controlled entities of the life statutory funds (2009: gain $17 million; 2008: gain $29 million), and

• other accounting mismatches (2009: gain $3 million; 2008: nil).

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AMP LIMITED

ASX Appendix 4D

For the half year ended 30 June 2009

DETAILS OF MOVEMENTS IN CONTROLLED ENTITIES

The majority of investment assets held by AMP are in the Australian life insurance statutory funds. At any one time, the life insurance statutory funds hold investments in various vehicles, including entities in w hich AMP Group has a controlling interest. Most of the changes listed below are controlled entities of the life insurance statutory funds. Other changes include the formation, deregistration, purchase and sale of minor operating controlled entities.

Contributions to net profit after tax attributable to shareholders of AMP Limited from individual controlled entities gained or lost during the half year are not material.

Controlled entities gained during the half year ended 30 Jun 2009

Controlled entities gained during the half year ended 30 Jun 2009
Name of entity	Date controlgained over entity
Future Directions Hedged Credit Interest Share Fund	3-Feb-09
Future Directions Inflation Linked Bond Fund	1-Apr-09
AMP Capital (International Finance No. 1) SA	12-May-09
AMP Capital (International Finance No. 2) SA	12-May-09
Asian Giants Infrustructure Fund	12-May-09
Future Directions Credit Opportunistic Fund	13-May-09
AMP Capital Furture Directions Opportunistic Fund	18-May-09
Hillross Wealth Management Centre Melbourne Pty Limited	25-Jun-09
Gemini Advisors Securities Investment CompanyKK	30-Jun-09

Controlled entities disposed during the half year ended 30 Jun 2009

Name of entity	Date control over entity lost
Summerset Group Holdings Limited	3-Apr-09
Summerset Holdings Limited	3-Apr-09
Maquarie Australian Enchaned	12-Mar-09
AMP Capital Macro Strategies	18-Mar-09
AMP World Index Fund	18-Mar-09
International Share Fund	18-Mar-09
AMP Capital Macro Strategies	18-Mar-09
Future Directions Property Fund	24-Mar-09
1 York Street Holdings PtyLimited	30-Jun-09

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AMP LIMITED

ASX Appendix 4D

For the half year ended 30 June 2009

DETAILS OF INVESTMENTS IN ASSOCIATED ENTITIES AND JOINT VENTURE ENTITIES

The majority of investment assets held by AMP are in the Australian life insurance statutory funds. At any one time, the Australian life insurance statutory funds hold investments in various vehicles, including associated entities. The returns on these investments are included within the total investment gains (losses) for the period. The majority of the gains and losses are attributable to policyholders. The ownership interests in significant associated investments are shown below.

Contributions to net profit after tax attributable to shareholders of AMP Limited from individual associated entities are not material.

	Ownership	Interest
	30 Jun	31 Dec
	2009	2008
COMPANIES	%	%
Gove Aluminium Finance	30	30
Diversified commercial mortgage backed securitiesptyltd	29	29
UNIT TRUSTS
AMP Capital China Growth Fund	34	34
AMP Capital Macro Strategies	35	69
AMP Equity Trust	35	34
AMP Property Portfolio	38	38
AMP Small Company Trust Class C	34	31
AMP World Index Fund	31	58
Global Property Securities Fund	33	25
Infrustructure Equity Fund	26	26
Marrickville Metro Trust	50	50
Property Income Fund	34	29
Responsible Investment Leaders Balanced Fund	37	38
Strategic Infrastructure Trust Europe 1	32	32
Strategic Infrastructure Trust Europe 2	32	32
Sugarland Shopping Centre Trust	50	50
Sustainable Future Australia Share Fund	44	50
Summerset Holdings Limited	49	99
Value Plus Australia Share Fund	24	23

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