AMP LIMITED — Interim / Quarterly Report 2011

Aug 17, 2011

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18 August 2011

Manager Manager Company Announcements Office Australian Securities Exchange Level 4, 20 Bridge Street Sydney NSW 2000

Market Information Services Section New Zealand Stock Exchange Level 2, NZX Centre, 11 Cable Street Wellington New Zealand

Announcement No: 42/2011

AMP Limited (ASX/NZX: AMP) (also for release to AMP Group Finance Services Limited (ASX: AQNHA & NZX: AQN010))

Part One: Appendix 4D

Part Two: AMP delivers A$455 million underlying profit for first half of 2011 AMP 2011 interim dividend information

AMP Financial Summary 1H11

Part Three: AMP Financial Services Cashflows Q1 and Q2 2011

Part Four: Investor Presentation

Part Five: Investor Report

Part Six: Directors’ Report & Financial Report

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2011 half year results

Craig Dunn Chief Executive Officer Paul Leaming Chief Financial Officer 18 August 2011

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Executive summary

• Business resilience evident in momentum across banking, key wealth management products and risk insurance

• AXA integration progressing well, cementing new competitive force in wealth management

• Strong capital position, with A$2.2b above MRR at 30 June 2011 – remains strong post 30 June

• Well equipped to capitalise on changing regulatory environment and consumer expectations, and eventual market recovery

2

Outline

 Group overview

• New AMP and growth strategy

• Integration update

• Business line review

• Financial overview

• Outlook and summary

3

Key performance measures and dividend

• Underlying profit A$455m (A$383m in 1H 10), including contribution of A$61m1 from AXA (31 March to 30 June 2011)

• Growth measures:

• Net cashflows in AMP Financial Services A$457m, from A$584m in 1H 10; AXA net cash outflows of A$964m, from net cash outflows of A$498m in 1H 10; AMP Capital Investors external net cashflows A$247m, from A$1.9b in 1H 10

• AFS value of risk new business up A$7m to A$52m; AXA value of risk new business A$37m2

• 69% of AMPCI’s AUM met or exceeded benchmark over

• 12 months to 30 June 2011

• Underlying return on equity 18.1%, reflecting merger with AXA and a prudent approach to capital management

• Interim dividend of 15cps (15 cps in 1H 10), 30% franked, represents payout of 81% of 1H 11 underlying profit

• Operating earnings, underlying investment income and group costs for the period 31 March to 30 June 2011, and interest expense on A$600m AXA subordinated debt

• Represents value of new business (VNB) for AFS and AXA’s Australian and New Zealand risk insurance business

4

Overview – 1H 11 profit summary

A$m		1H 11	1H 10	% change
AFS Contemporary Wealth Management		157	150	+5%
AFS Contemporary Wealth Protection		84	73	+15%
AFS Mature		67	68	-2%
New Zealand		21	32	-34%
AXA 1		59	-
AMP Capital Investors		41	44	-7%
BU operating earnings		429	367
Group office costs²		(26)	(20)
Total operating earnings		403	347
Underlying investment income²		83	64
Interest expense on corporate debt²		(39)	(36)
AMP Limited tax loss recognition		8	8
Underlying profit		455	383
Market adjustment – investment income², annuity fair value,risk products	2	12	7
Loan hedge revaluations		-	8
Other items 3		(17)	4
Profit after income tax before AXA merger related adjustments		450	402
and accounting mismatches
M&A transaction costs 4		(34)	(7)
AXA integration costs		(36)	-
Amortisation of AXA acquired intangible assets		(22)	-
Accountingmismatches		(9)	30
Net profit attributable to shareholders of AMP Limited		349	425

1. Operating earnings for the AXA Australian and New Zealand business units for the period 31 March to 30 June 2011. Refer p26 of the 1H 11 Investor Report for more detail.

2. All line items impacted by the merger with AXA Australian and New Zealand businesses.

3. Principally comprise one-off and non-recurring costs.

4. M&A related transaction costs primarily relate to the merger with AXA Asia Pacific Holdings. Refer p49 of 1H 11 Investor Report for more detail.

5

Overview – assets under management

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44
115
Average AUM Closing AUM AXA
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6

Overview – continued tight cost control while investing for growth

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559
442
421 426
413
44.8%
42.4% 42.2%
39.9%
38.5%
Operating costs Project costs Cost to income ratio Controllable costs to AUM AXA 31 Mar to
1H 11 including AXA 1H 11 including AXA for 30 Jun 2011
for 31 Mar to 30 Jun 31 Mar to 30 Jun
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7

The new AMP

Powerful competitive position

• New combined AMP-AXA group has powerful competitive position with its:

• scale and efficiency

• customer base

• brand

• distribution footprint

• and broader set of quality, contemporary products

• Now the leading independent wealth management company in Australia and New Zealand, with No 1 ranking in key market segments[1]

• Over 4 million customers, with above-average share of 35-64 year olds and relatively high proportion of small business owners and high net worth[2] compared to industry averages

• Based on funds under management and annual premium income. Plan for Life retail managed funds report, March 2011; Plan for Life risk statistics, March 2011.

• AMP-commissioned Roy Morgan research 2009.

9

Powerful competitive position

 Largest adviser and planner network in Australia and New Zealand

• Award-winning networks, with multiple advice brands and value propositions offering choice to both advisers and customers

• 4,000+ aligned and employed advisers and planners, with strong retention evident post transaction

• Extensive relationships with IFA market

 Market leading products and platforms

• AMP’s master trust platform, low-cost and highly scaleable, provides attractive solutions to mass market

  • Cannex 5-star rated AMP Flexible Super and Pensions

• AXA North platform has evolved into highly rated wrap platform, servicing mass affluent and HNW

  • CoreData’s Platform of the Year 2011

• Strongly growing banking business complementing wealth management offering

• Award winning risk products: AMP Flexible Protection and AXA Elevate[1]

• Well performing investment funds, including 7 AMP Capital Investors flagship funds ‘buy’rated by independent researchers and consultants, and strongly performing ipac multimanager portfolios recommended by Lonsec[2]

• Combined SMSF assets – Multiport, Personalised Portfolio, Super IQ – offering broad, growing services to self-managed superannuation clients

• AMP Flexible Protection - Winner 2010 Trauma Product of the Year in the AFR Smart Investor Blue Ribbon Awards, and runner up in 2011; AXA Elevate Total & Permanent Disability Insurance product – Money Management’s Best of the Best awards, 5 star value, 2009, 2010 & 2011.

• ipac’s Income Generator portfolio – 2011 winner of Best Innovative Product award by Money Magazine.

10

AMP Flexible Super – performing as designed

• AUM of A$2.8b (doubled in 1H 11) and 70,000 customer accounts

• 1H 11 net cash flows A$1.5b

• Attracting new, younger customer base – half of superannuation customers are 35 years or younger

• Meets customer demand and regulatory drive for simpler, low-cost product while generating attractive margins

• Modular design suits customer life stages and enables more sophisticated solutions for retirement needs

• Minimal cannibalisation from closed products to Core option

AMP Flexible Super superannuation account AUM $1.1b, customers 62,000¹, avg balance A$18,000

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(FY10 33%)
Customers 70%
(FY10 41%)
Customers 14%
(FY10 26%)
Customers 16%
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AMP Flexible Super retirement account
AUM $1.7b, customers 8,500¹, avg balance A$200,000
(FY10 2%)
Customers 5%
(FY10 14%)
Customers 23%
(FY10 84%)
Customers 72%
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1. This compares with 17,000 superannuation customers and 4,000 retirement customers at December 2010. In 1H 11, 27,500 (A$15m AUM) SuperLeader superannuation customers transferred to AMP Flexible Super.

11

AXA North – now a market-leading wrap platform

• North now has A$1.8b in AUM

• Proportion in non-guarantee increasing with platform’s evolution into full wrap capability (31% of AUM); 55% of net cashflows in June 2011 into non-guarantee

• 35% of 1H 11 AUM placed by IFAs

• 56% of North AUM managed internally, principally through ipac multi-manager

From a product to a wrap platform – continuous enhancement program added richer functionality and options attracting stronger flows

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2007 2008 2009 2010
North launched Added Protected Added
in Nov 2007 with Investment Protected
Protected guarantee in Oct Retirement
Growth 2008 – GFC spike guarantee in
guarantee on in guarantee sales May 2010
basic platform
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• 2011

• North now a full wrap platform  Full menu of managed funds  Direct share trading

• Term deposits

• Model portfolios

• Flexible pricing

• Optional guarantees

• Insurance options

• Online account transfers

• Customised client reporting

Highly awarded products and platform:

• 2011 CoreData’s Platform of the Year

• 2010 S&P Structured Product of the Year

• 2009 Rainmaker Best New Product of the Year

• 2009 Rainmaker Best Innovation of the Year

• 2009 SuperRatings Best New Product

• 2008 Rainmaker Best New Superannuation Product of the Year

12

Quality, market-leading advice networks

• Quality of advice networks recognised by industry

• AMP Financial Planning (AMPFP) 2011 Money Management ’s Institutional Dealer Group of the Year

• Licensees in AXA Financial Advice Network voted 1st, 2nd and 3rd as most attractive licensees to work with in CoreData’s 2011 annual licensee survey

• AMPFP continues to grow strongly, driven by BAU recruitment and Horizons Academy graduates (347 to date)

• Leading market with ‘scaled’ advice – launched My Money Choices, a scaled advice model with entry level pricing of $150; currently offered by 500 AMPFP and Hillross planners

• AMP and AXA networks operating successfully on a fee-for-advice basis for past 12 months for new superannuation, pension and investment business

• Multi-branded advice offerings mean combined organisation has broad range of value propositions for all Australian and New Zealand advisers

13

Continuing to grow our advice networks

		Dec 2010	June 2011	Change	Change	July 2011
				Dec to June	March to June
					2011
	AMP Financial Planning	1,526	1,566	+40	+23	1,585
	Hillross	282	277	-5	-5	312¹
	AMP Financial Planners	1,808	1,843	+35	+18	1,897
	AXA Financial Planning	361	342	-19	-4	338
	Charter Financial Planning	488	478	-10	+6	475
	Genesys Wealth Advisers	285	282	-3	+7	266
	ipac	128	127	-1	-9	128
	Tynan Mackenzie	41	42	+1	+1	42
	Jigsaw Support Services	262	233	-29	-9	235
	AXA Financial Planners	1,565	1,504	-61	-8	1,484
	Total Australia	3,373	3,347	-26	+10	3,381
	AMP New Zealand	322	308	-14	-8	305
	AXA New Zealand	359	360	+1	+3	362
	Total financial advisers	4,054	4,015	-39	+5	4,048

• AXA adviser numbers impacted by lower recruitment activity in Q1 11 due to merger uncertainty

• As of today, around 97% of the value of the network in AXA and Charter Financial Planning has been retained

• Net increase of 18 practices joining AMP and AXA networks from competitors in 1H 11

14

1. Includes Hillross’ acquisition of IRIS Financial Group's announced 13 July 2011.

Growth strategy

• A key goal of AMP’s is to deliver outstanding business value by:

• delivering quality services and products that respond to the needs of fast-growing customer segments

• building a professional planner force, with above market growth and productivity

• capitalising on a broader, more productive domestic distribution footprint

• expanding into select Asian investment management markets

• AXA integration is now accelerating delivery of growth strategy, with more customers, increased scale and efficiency, broader distribution footprint, and more competitive set of quality contemporary products

15

Integration update

AXA integration accelerating delivery of AMP’s growth strategy

• Integration objectives:

• Maintain business momentum while bringing the two companies together

• Sharpen competitive edge by delivering synergies and drawing on competitive strengths of both organisations

• Build stronger growth platform than either company had previously

17

Integration accelerating strategy delivery

Integration accelerating strategy delivery	Integration accelerating strategy delivery	Integration accelerating strategy delivery
Integration progress 30 March – 18 August 2011
Date	Action
30 March	•	Stable operations maintained across combined organisation as transaction
		completed, with interim governance structures in place
4 April	•	Began joint planning with AMP and AXA business leaders
13 April	•	Launched welcome packages for AXA advisers and merger benefit payments for
		AMP planners
17 May	•	Confirmed AMP management team
	•	Confirmed advice businesses, key products/platforms and technology for merged
		organisation
22 May	•	Launched new AMP logo
June	•	Aligned risk appetite on shareholders funds and risk insurance books
21 July	•	Announced high level organisational structures for AFS and AMP Capital
		Investors
	•	Announced senior leadership teams (direct reports to MDs) for AFS and AMP
		Capital Investors
17 August	•	Finalised integration investment profile and priorities
	•	Began work on more than half the projects required to integrate the business over
		the next three years

18

Synergy target upgraded

• Synergy target increased 17% to A$140m post tax from A$120m, due to a range of factors including the removal of additional IT infrastructure duplication and contract renegotiations with external suppliers

• Project spend increased by 9% to A$310m post tax to capture additional synergies, delivering an improved return on investment

• Majority of synergies based on cost efficiencies

• Expected timing of net synergies driven by programming of planned integration initiatives

• Integration will benefit all businesses, in the process transforming AMP into a more efficient and competitive business

Expected mix of net synergies (Ongoing) Cost synergies (both for AMP and AXA businesses) Revenue benefits (eg, in-house asset management) Revenue attrition (eg, planner attrition) Total Expected timing of net synergies 30 June 11 - Actual 31 December 2011 31 December 2012 31 December 2013 31 December 2014	A$m post tax (estimated)	Key sources of synergy include: product and platform rationalisation IT infrastructure consolidation business model and organisation design benchmarking and best practice program asset management consolidation premises consolidation supply chain management
	144 10 (14)
	140
		Realised in P&L¹ 1H 11 A$m Expected timing of integration spend³ (One-off) 1H 11 3² FY 11 18 FY 11 - 37% FY 12 - 51% FY 13 - 9% FY 14 - 3%
	A$m annual run rate¹ (cumulative) post tax (estimated)³
	18 30 79 133 140

1. Realised in P&L will lag annual run rate.

2. Of the A$3m synergy benefit realised in 1H 11, A$2m has been attributed to the AXA BU operating earnings and A$1m to Group Office costs. 3. Based on current integration planning. Could vary in future to enable business flexibility to respond to changing business priorities and external markets. 19

Integration accelerating strategy delivery

• Over the next six months, we will:

• Complete most of the organisational design work and integration of the AXA and AMP business teams

• Largely complete separation from AXA SA

• Finalise implementation of new enterprise-wide governance structures and frameworks

• Substantially complete merger of group functions

• Facilitate reporting of FY 11 financial results according to AMP structure (eg, AFS – CWM, CWP, Mature and NZ; AMP Capital)

• Have more than 75% of the integration projects in flight

20

Business line review

AMP Financial Services – 1H 11 highlights

• Delivered resilient operating earnings of A$329m in 1H 11 (A$323m in 1H 10)

• Strong performances in banking, Contemporary Wealth Protection and AMP Flexible Super offset impacts of market and natural disasters in New Zealand

• Ongoing cost discipline underpinned a 33.9% cost to income ratio, while supporting continued investment in the business

• Investment program has delivered:

• contemporary, reinvigorated product set

• quality, highly productive, growing planner force with feefor-advice capability, well prepared for regulatory change

22

AFS overview – 1H 11 cashflows

• Strong net cashflows in core products and channels driven by success of AMP Flexible Super, though overall cashflows impacted by subdued investor sentiment

• 1H 11 total net cashflows of A$457m, down from A$584m in

• 1H 10, reflected:

 higher overall outflows resulting from higher AUM balances

• net outflows in retail investment and external platforms

• Total retail superannuation and pension net cashflows up 41% in 1H 11 to A$482m

• AMPFP net cashflows up 12% on the half and 47% in Q2 11 on Q2 10

• CWM net cashflows of A$721m (A$855m in 1H 10)

• Persistency remained strong at 90.2% in 1H 11 (90.7% in 1H 10)

23

AFS overview – AMP Banking

• Major contributor to CWM earnings, with 1H 11 operating earnings of A$31m (A$21m in 1H 10) driven by higher net interest margin (up 25 bps on 1H 10)

• Return on capital of 18.0% in 1H 11, up from 14.3% in 1H 10

• Residential mortgage book up 12% on 1H 10

• Deposit book up 30% on 1H 10

• Cost to income ratio 32.0% in 1H 11 (40.1% in 1H 10)

• Well positioned with capital adequacy ratio of 11.6% (12.2% in 1H 10) – Tier 1 8.4%

• Funding comprises 67% on balance sheet funding and 33% off balance sheet  On balance sheet funding mainly retail and superannuation deposits

• Successful completed a A$940m RMBS issue with strong investor demand  Growth will continue to be managed in line with funding capacity

• Well managed book, with 90+ day arrears of 0.51% in 1H 11, with LVR > 80% mortgage insured; weighted average LVR of portfolio is 57%

24

AFS overview – changes in investment-related revenue

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Offset by
lower
Including shift
investment
to lower margin
management
investment mix,
180 expenses reflected in
Offset by lower improving
variable costs AMP Bank
margins
170
160
2H 10 Repricing of Initial Subtotal Changes in Lower Fee rebates Other 1H 11
investment- closed super, planner fees investment / SuperLeader due to higher investment-
related revenue pension on product mix par profits average related
to AUM products contributions customer revenue to
balances AUM
bps
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 Investment-related revenue to AUM in CWM (as it currently stands) is expected to decrease by around 3% pa across the cycle in normal markets, subject to potential MySuper changes

25

AFS overview – disciplined cost control

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278
270 274
264
261
Operating costs Project costs Cost to income ratio Controllable costs to AUM
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26

AFS Australian contemporary wealth management

CWM	CWM	CWM	CWM
	1H 11	1H 10	Change
Operating earnings Controllable costs Cost to income ratio Net cashflows Operating earning to AUM 1,2 Persistency Average AUM (including capital) 1 Return on equity	A$157m A$173m 42.1% A$721m 46bps 89.9% A$54.8b 39.9%	A$150m A$163m 41.7% A$855m 51bps 90.7% A$51.5b 40.8%	+5% +6% +0.4 percentage points -16% -5bps -0.8 percentage points +6% -0.9 percentage points

1. Based on monthly average AUM including capital.

2. Operating earnings in this ratio exclude AMP Banking.

27

.

AFS Australian contemporary wealth protection

CWP	CWP	CWP	CWP
	1H 11	1H 10	Change
Profit margins Experience profits Operating earnings Profit margins / API1 Operating earnings / API1 Controllable costs Individual risk API¹ Individual risk lapse rate RoEV pre transfers @ 3% discount margin VNB @ 3% discount margin Return on equity	A$79m A$5m A$84m 19.5% 20.7% A$49m A$670m 11.4% 7.5% A$52m 25.9%	A$76m (A$3m) A$73m 19.6% 18.9% A$46m A$616m 10.4% 9.5% A$42m 24.7%	+4% +A$8m +15% -0.1 percentage points +1.8 percentage points +7% +9% +1 percentage point -2 percentage points +24% +1.2 percentage points

1. API is annual premium in force.

28

AFS Australian mature

Mature	Mature	Mature	Mature
	1H 11	1H 10	Change
Operating earnings Controllable costs Controllable costs/AUM1 Net cashflows Persistency AUM (pre-capital) RoEV pre transfers @ 3% discount margin VNB @ 3% discount margin Average capital Return on equity	A$67m A$26m 29bps (A$617m) 89.6% A$17.1b 1.7% A$6m A$416m 37.2%	A$68m A$28m 31bps (A$588m) 89.4% A$17.6b (1.7%) A$10m A$437m 35.5%	-2% -7% -2bps -5% +0.2 percentage points -3% +3.4 percentage points -A$4m -5% +1.7 percentage points

1. Based on monthly average AUM including capital.

29

AFS New Zealand

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New Zealand

	1H 11	1H 10	Change
Profit margins Experience profits / losses Operating earnings Controllable costs Cost to income ratio Return on equity Individual risk API Lapse rates Net cashflows AUM (pre capital) RoEV pre transfers @ 3% discount margin1 VNB @ 3% discount margin2	A$22m (A$1m) A$21m A$26m 41.9% 17.3% NZ$160m 9.3% NZ$113m NZ$6.4b NZ1.9% NZ$1m	A$28m A$4m A$32m A$24m 31.8% 25.1% NZ$148m 10.1% NZ$108m NZ$5.8b NZ4.2% NZ$10m	-21% -A$5m -A$11m +8% +10.1 percentage points -7.8 percentage points +8% (NZ) -0.8 percentage points +5% (NZ) +10% (NZ) -2.3 percentage points -NZ$9m

1. EV has been impacted by lower VNB and lower bond yields, which impact capital guaranteed products EV.

30

AXA overview – 31 March to 30 June highlights

• Momentum maintained across the business through transaction completion

• Business unit operating earnings for the period of A$59m

• Continued strong sales through the North platform and ongoing sales uplift for the AXA Elevate range of financial protection products, following its launch through AXA platforms in mid-2010

• North net cashflows A$67m in Q1 11 and A$143m in Q2 11 (A$210m in 1H 11)

• Total net AXA cashflows for 1H 11 of (A$964m) – IFA outflows of (A$650m)¹ including from lower margin external advice platforms and Alliance Bernstein related unit trusts; NZ wholesale net cashflows down by A$140m

• Positive response from AXA aligned and employed advisers post transaction

• Since completion of merger, two key group risk insurance clients retained in competitive tender processes

• See chart 56 for more detail.

31

AXA overview – key financial results

AXA Australia and New Zealand

AXA Australia and New Zealand	AXA Australia and New Zealand
Operating earnings¹ • Australian Wealth Management • Australian Financial Protection • Australian Mature • New Zealand Controllable costs¹ Cost to income ratio¹ Net cashflows² AUM³ Australian individual risk API³ Australian group risk API³ New Zealand risk API³ Return on equity¹	A$59m A$14m A$20m A$13m A$12m A$103m 49.3% (A$964m) A$44b A$556m A$184m NZ$191m 23%

1. Relates to the period 31 March to 30 June 2011 only.

2. For 1H 11.

3. As at 30 June 2011.

32

AMP Capital Investors – 1H 11 highlights

• Operating earnings of A$41m (A$44m in 1H 10) reflecting market conditions

• Improvements in fee income offset by higher costs

• 1H 11 controllable costs steady on 2H 10, but up 6% on 1H 10, largely as a result of higher employment costs

• Attributable to international expansion and an increase in staff to complete rollout of new operating platform

• External net cashflows of A$247m, from A$1,855m in 1H 11, reflected impact of natural disasters on Japanese investor base and volatile markets

• 69% of AUM met or exceeded benchmark over 12 months to June 30 2011

33

AMPCI overview – 1H 11 key financial results

AMPCI	AMPCI	AMPCI	AMPCI
	1H 11	1H 10	Change
Operating earnings Management fees – AUM based Management fees – non-AUM based Total performance & transaction fees Controllable costs Cost to income ratio External net cashflows Return on equity¹	A$41m A$153m A$25m A$20m A$144m 71.3% A$247m 36.5%	A$44m A$149m A$27m A$19m A$136m 67.7% A$1,855m 50.4%	-7% +3% -7% +5% +6% +3.6 percentage points -A$1,608m -13.9 percentage points

1. Return on equity reflects an increase in AMPCI shareholder capital in June 2010 to fund seed pool assets. 2H 10 RoE 41.8%.

34

AMPCI – drivers of cashflows

AUM as at 31 December 2010 Australian market flows Asian distribution channels NZ market flows Rest of world Australian contemporary AMP Group Australian run-off business NZ market flows Investment returns and other	A$98.0b (0.5) 0.5 0.2 0.0 (0.5) 0.0 (0.6) 0.0 0.6
AUM as at 30 June 2011	A$97.7b

35

AMPCI – performance against benchmarks

69% of AUM met or exceeded benchmark over one year 48% over three years 56% over five years

AMPCI managed* Multi-manager and Multi-Asset Group

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----- Start of picture text -----

98
96 95 97
94
92 92
84 82
Target
75%
72
62 62
58
53 54
50
44
40 40
32
17
10
%
3 3
Asia-Pacific Asia-Pacific Infrastructure and Direct International International International fixed Diversified
equities fixed interest direct property listed property equities interest
investments
One-year rolling to June 11 Three-year rolling to June 11 Five-year rolling to June 11
----- End of picture text -----

% indicates assets under management meeting or exceeding benchmarks over rolling one-, three- and five-year periods to June 11. * Excludes Future Directions Funds.

3636

Financial overview Paul Leaming Chief Financial Officer

Financial overview – key points on P&L

	1H 11	1H 10
Underlying profit	455	383
Market adjustment – investment income	(3)	(8)
Market adjustment – annuity fair value	16	5
Market adjustment – risk products	(1)	10
Loan hedge revaluations	-	8
Other items	(17)	4
Profit after income tax before AXA merger related adjustments and accounting mismatches	450	402
M&A transaction costs	(34)	(7)
AXA integration costs	(36)	-
Amortisation of AXA acquired intangible assets	(22)	-
Accounting mismatches	(9)	30
Net profit attributable to shareholders of AMP Limited	349	425

 AXA intangible assets required by accounting standards to be amortised total A$1.2b¹

• FY 11 amortisation expected to be A$67m (post tax)

• On a full-year basis, amortisation expected to be A$90m per year

• All figures are draft as Accounting Standards (AASB 3) allow 12 months to complete the acquisition balance sheet.

38

Financial overview – balance sheet strength

Maturities	1H 11 A$m
Tier 1 Shareholder equity Tier 2 2022 subordinated bonds 10+ years AMP Notes 2 - 5 years Subordinated loan to AMP Bank 2 - 5 years Callable 2016 subordinated bonds 2 - 5 years Senior debt Commercial paper 0 - 1 year Euro MTN 0 - 1 year Domestic MTN 2 - 5 years TOTAL RESOURCES	6,991 83 296 (100) 600
	879
	59 398 200
	657
	8,527

Substantial excess above MRR of A$2,174m at Group level as at 30 June 2011

As at 15 August 2011, excess above MRR was around A$2.0b

	1H 11
Gearing	11%
Interest cover	12.1times
(underlying)
Group cash	A$693m
Undrawn bank
facilities	A$500m

39

Financial overview – prudent approach to capital management

• AMP continues to take a prudent approach to capital management

• Consistent with this approach, a number of capital initiatives were undertaken during 1H 11

• sale of approximately A$400m of equities backing AXA’s shareholder capital and financial protection policy liabilities

• purchase of approximately A$570m of put options over the ASX 200 and S&P 500

• purchase of approximately A$2.9b of Australian government bond options providing protection against falls in bond yields

• Subsequent to 30 June, AMP purchased approximately A$1.1b additional put options over the S&P 500

• In addition to these tactical protection strategies, there are a number of long-term protection strategies in place within both AMP Life and AXA which reduce sensitivities to equity markets and interest rates. These include strategies involving:

• equity options and futures

• interest rate options, futures and swaps

40

Financial overview – capital position at 30 June

	Total	AMP Life	AMP Life	AMP	Total	AXA		Group
30 June 2011	AMP	SFs	Other	Banking	AFS	A&NZ	AMPCI	Office
Total capital resources	8,527	1,932	555	373	2,860	4,253	371	1,043
Intangibles	(3,655)	-	(457)	(33)	(490)	(2,928)	(145)	(92)
Tangible capital resources	4,872	1,932	98	340	2,370	1,325	226	951
Senior debt	(657)							(657)
Other deductions	(24)			(24)	(24)
Regulatory capital resources	4,191	1,932	98	316	2,346	1,325	226	294
Minimum regulatory requirements (MRR)	2,017	816	24	256	1,096	879	42	-
Regulatory capital resources above MRR	2,174	1,116	74	60	1,250	446	184	294
- Attributable to shareholders	1,491	433	74	60	567	446	184	294
- Attributable to policyholders	683	683			683

41

Financial overview – capital movements

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42

Financial overview – capital sensitivity

• These sensitivities are a point in time view of the impact of movements in equity markets, bond yields and property values on the 30 June 2011 capital position

• The change in sensitivities from FY 10 reflect the larger capital base of the combined company

• AMP’s dynamic capital management framework includes market-related trigger points at which management will take action to reduce the impact of market movements on its capital position

• These sensitivities include impact of actions taken before 30 June 2011, but do not make any allowance for management actions taken subsequent to 30 June 2011, which have continued to reduce the capital base’s sensitivity to markets

			AMP Life
			Statutory
	30 June 2011 capital sensitivities – regulatory capital resources above MRR (A$m)		Funds	AXA	AMP Group
	Actual 30 June 2011 (ASX 200 @ 4,608;
	Australian bond yields @ 5.3%)		1,116	446	2,174
	Equity sensitivity	– 20% increase (ASX 200 of 5,530)	+340	+100	+460
		– 10% increase (ASX 200 of 5,069)	+180	+50	+240
		– 10% decrease (ASX 200 of 4,147)	-170	-60	-240
		– 20% decrease (ASX 200 of 3,686)	-330	-120	-470
	Bond yield
	sensitivity	– 1.0% increase (Australian bond yields 6.3%)	0	+20	+40
		– 0.5% increase (Australian bond yields 5.8%)	+10	+20	+40
		– 0.5% decrease (Australian bond yields 4.8%)	-40	-50	-100
		– 1.0% decrease (Australian bond yields 4.3%)	-70	-110	-200
	Property sensitivity	– 10% increase in unlisted property values	+100	+10	+130
		– 10% decrease in unlisted property values	-110	-10	-140

43

Financial overview – regulatory capital outlook

 APRA review of life and general insurance capital standards

• APRA recently completed a second quantitative impact study (QIS2)

• APRA has indicated it expects to make further changes to its proposals when it issues a response paper and draft prudential standards in late 2011

 Other reviews underway include

• APRA development of supervision framework for conglomerate groups

• ASIC review of financial requirements imposed on responsible entities of registered managed investment schemes under the AFSL regime

• Reserve Bank of New Zealand review of solvency standards for NZ insurance companies; AMP intends to apply for an exemption to the NZ solvency standards

• Basel Committee on Banking Supervision review of global banking supervision (Basel III); APRA to revise Australian banking standards

• Maintaining strengthened capital position ahead of outcomes of regulatory capital reviews

• Taking a prudent approach until regulatory position becomes clearer

44

Financial overview – capital and dividends

	Policy	1H 11
Dividend payout ratio	75% to 85% of underlying	Interim 15 cps dividend
	profit	represents 81% of 1H 11
		underlying profit
Franking	Maximum possible	Dividend 30% franked
DRP	Preference for DRP at par,	DRP offered at a discount of
	with shares bought on	1.5% and effected by issuing
	market	new shares, as part of
		prudent capital approach

45

Outlook and summary

Outlook

• In short term, European debt crisis and uncertainty over US recovery likely to remain a threat and source of volatility for some time to come, reinforcing investor caution

• Over medium term, dynamics underpinning wealth management in Australia and investment management in Asia remain highly attractive, bolstered by proposed move to 12% SG in Australia over next decade

• AMP has used its balance sheet strength, business resilience and merger with AXA to strengthen its competitive position

• With this stronger competitive position, the combined AMP group is well equipped to succeed in changing wealth management world

47

Short-term outlook – cost outcomes

• Continued investment in the business will be reflected in controllable costs for FY 11

• Combined AFS (including AXA) cost base expected to grow 4-5% on FY 10 (excluding synergies)

• Cost growth in AMP Capital Investors will slow given completion of re-platforming

• Net annual synergy target upgraded to A$140m post tax from AXA merger

• Annual run-rate synergy benefits are expected to be A$30m post tax as at 31 December 2011 (estimated P&L impact for FY 11 A$18m post tax)

• Integration costs of A$310m post tax for AXA merger

• Integration costs for FY 11 are expected to be A$115m post tax

48

Regulatory outlook

• Taken action to move ahead of regulatory curve in both Australia and New Zealand

• Actively engaged in debate and consultation to understand Government objectives and provide input into final legislation to achieve desired outcomes

• AMP remains supportive of regulatory changes that lead to better outcomes for consumers and increased confidence in industry

• Strongly support moves to lift 9% SGC to 12% over next decade

• Draft Future of Financial Advice (FOFA) legislation expected next month, with final legislation expected to follow later in 2H 11; some changes could take effect from 1 July 2012

• Government response to peak consultative group report on Stronger Super expected in 2H 11

49

Summary

• Resilient business coping well with tough market

• Investment in targeted growth initiatives driving business momentum

• Strong capital base underpinning business strength and flexibility

• Well-managed integration leading to more competitive business with stronger platform for growth

• Strongly equipped to withstand market volatility and changing regulatory environment

50

Appendices

Further information

Topic	Topic	Chart
	AFS’s strong track record of managing margins	53
	Acquisition accounting	54
	AXA Australia – AUM by platform, channel and	55
	investment manager
	AXA Australia – net cashflows by platform and channel	56
	Growth strategy gaining traction	57 - 58
	Regulatory outlook – FOFA and Stronger Super	59 - 60

52

AFS’s strong track record of managing margins

==> picture [13 x 22] intentionally omitted <==

==> picture [624 x 274] intentionally omitted <==

----- Start of picture text -----

250
Investment-related revenue to AUM (bps)
200
Choice of Fund
150
introduced
APRA licensing Lehman AMP Flexible
100 changes collapses Super
introduced launched
50
Operating earnings to AUM (bps)
0
1H05 2H05 1H06 2H06 1H07 2H07 1H08 2H08 1H09 2H09 1H10 2H10 1H11
----- End of picture text -----

• Five year change in investment-related revenue to AUM consistent with AMP’s past guidance

• AMP’s investment related revenue to AUM guidance remains unchanged at around 3% pa decrease across the cycle (in normal markets) for CWM as it currently stands, subject to potential MySuper changes

• Operating earnings to AUM reflects cost discipline and business model flexibility

53

Financial overview – acquisition accounting

Purchase	consideration
(Cash A$0.5b and scrip A$3.8b)		A$4.3b
Less:	AXA net tangible assets on acquisition	A$1.3b
Less:	Identified intangible assets	A$1.2b
	(e.g. value of in-force, distribution assets and software)
Equals:	Goodwill	A$1.8b

Note: All figures are draft as Accounting Standards (AASB 3) allow 12 months to complete the acquisition balance sheet.

• Under accounting standards, AXA assets and liabilities acquired (including off-balance sheet items) are required to be recognised at fair value, which results in the recognition of AXA intangible assets

• The difference between the purchase consideration for AXA and its net tangible assets represent intangible assets (net of associated deferred tax liability) and goodwill

• AXA intangible assets are required to be amortised over their expected useful life; goodwill is not required to amortised

• FY 11 amortisation expected to be A$67m (post tax)

• On a full-year basis, amortisation expected to be A$90m per year (post tax)

• Accounting policies and, where appropriate, actuarial assumptions have been aligned between AMP and AXA

54

AXA Australia wealth management – AUM by platform, channel and investment manager

Platforms AUM A$b Summit & Generations¹ North Multiport AXA Financial Planning 5.6 2.5 0.4 0.1 Charter Financial Planning 8.2 4.8 0.6 0.2 Jigsaw advisers 0.9 0.5 0.1 0.0 ipac group advisers and Tynan Mackenzie 7.2 0.1 0.0 0.0 Genesys group advisers 4.8 0.1 0.0 0.0 Direct distribution 1.8 IFA 11.3 1.8 0.6 1.0 Total 39.9 9.8 1.8 1.2 Investment manager ipac 12.8 3.5 1.0 National Mutual Funds Management 3.2 0.3 0.0 Alliance Bernstein 9.9 0.9 0.0 Other 14.0 5.0 0.8 1.2 Total 6 39.9 9.8 1.8 1.2	Advice Owned advice platforms² External advice platforms³ 0.0 0.1 4.7 2.3 1.0 3.7 0.5 0.2 6.3 6.3 3.7 1.5 0.0 0.0 0.4 0.0 2.1 4.8 6.3 6.3	Investment Retail and wholesale unit trusts ipac wholesale 0.1 0.1 0.0 0.0 0.0 0.5 2.8 3.0 0.5 0.5 1.6 1.45 3.0 0.5	Mature4
			2.6 2.5 0.2 0.0 1.3 4.3
			11.0
			2.5 1.2 7.2
			11.0

1. Summit and Generations are AXA owned and developed platforms, and include Assure, a badged version of Summit. North is also AXA owned and developed and is a fully functioning wrap platform. Multiport is AXA owned and developed, used for SMSF and IMA business.

2. Owned advice platforms include iaccess and Synergy. iAccess is the ipac badge on the Summit technology. Synergy is the in-house platform used by Genesys.

3. External advice platforms include BT Wrap, Solar, iSelect and other margin earning platforms. Solar is Genesys’s badged BT Wrap, iSelect is the ipac badge on BT Wrap, and other margin earning platforms is principally margin earned by Genesys from a range platform providers.

4. Includes personal and employer superannuation, insurance bonds, guaranteed savings accounts and traditional participating products sold by the life company. Some products in Australian Mature are closed to new business.

5. The A$1.4b represents AXA branded and marketed unit trusts predominantly sold via external platforms or directly, with Alliance Bernstein responsible for investment management of the funds.

6. Numbers may not add due to rounding.

55

AXA Australia wealth management – net cashflows by platform and channel

Platforms Advice YTD 30 June 2011 Netflows A$m Summit & Generations¹ North Multiport Owned advice platforms² External advice platforms³ AXA Financial Planning 9 26 61 6 Charter Financial Planning 44 35 75 18 Jigsaw advisers -5 -15 13 2 ipac Group advisers and Tynan Mackenzie -221 -13 5 11 -68 -157 Genesys group advisers 21 9 1 -43 54 Direct distribution -14 IFA -828 -113 46 46 -40 -203 Total 5 -994 -80 210 82 -151 -303

Investment Mature4 Retail and wholesale unit trusts ipac wholesale -15 -70 -16 -68 -1 -5 30 -44 -447 -117

-479 30 -304

1. Summit and Generations are AXA owned and developed platforms, and include Assure, a badged version of Summit. North is also AXA owned and developed and is a fully functioning wrap platform. Multiport is AXA owned and developed, used for SMSF and IMA business.

2. Owned advice platforms include iaccess and Synergy. iAccess is the ipac badge on the Summit technology. Synergy is the in-house platform used by Genesys.

3. External advice platforms include BT Wrap, Solar, iSelect and other margin earning platforms. Solar is Genesys’s badged BT Wrap, iSelect is the ipac badge on BT Wrap, and other margin earning platforms is principally margin earned by Genesys from a range platform providers.

4. Includes personal and employer superannuation, insurance bonds, guaranteed savings accounts and traditional participating products sold by the life company. Some products in Australian Mature are closed to new business.

5. Numbers may not add due to rounding.

56

Growth strategy gaining traction

• Goal Action Outcome Delivering • Confirmed AXA North as AMP’s • AXA North has attracted more than A$1.8b in AUM and awarded quality wrap platform in May 2011 CoreData’s 2011 Platform of the Year services and  Platform upgraded Q2 11 • AMP Flexible Super now has more than A$2.8b in AUM and more products that to full investment, fullthan 70,000 customer accounts, up from 21,000 in FY 10, many of respond to the service wrap platform them new to AMP, and half of the superannuation customers are needs of fast- • Continued to focus on AMP under 35 growing Flexible Super and Retirement • AMP Flexible Super’s insurance and investment offerings classified customer accounts as core products by Heron as Top Ten Personal Product; AMP Flexible Super – segments • AMP’s SignatureSuper will be Employer’s insurance and investment offerings Top Ten Corporate medium and large corporate Product superannuation product • AMP Flexible Super Retirement account awarded 5 stars from

• • AMP Flexible Super will target Canstar Cannex small to medium businesses • AMP SignatureSuper Pension judged Top Rated Pension Product

• • Continuing to invest in two and awarded 6 Heron Quality Stars distinct risk products – AMP • AMP Flexible Protection - Winner 2010 Trauma Product of the Year Flexible Lifetime Protection and in the AFR Smart Investor Blue Ribbon Awards, and runner up in AXA Elevate 2011

• • Announced plans to build new • AXA Elevate Total & Permanent Disability Insurance product – retail insurance product range Money Management’s Best of the Best awards, 5 star value, 2009, within next two years 2010 & 2011

• • Will continue to support both • ipac’s Income Generator portfolio – 2011 winner of Best Innovative AMP and AXA group risk Product award by Money Magazine products • AMPCI named Money Management/Lonsec Fund Manager of the

• • Confirmed will use collection of Year for AMP Capital Property Securities Fund SMSF assets – Multiport, • AMP Bank awarded Your Mortgage Gold and Silver 'Mortgage of the Personalised Portfolio, Super IQ Year Award' for second year running for Intro Variable Pro Pack and – to increase share of SMSF Basic Variable Rate Loan market

57

Growth strategy gaining traction

Goal Action Outcome	Goal Action Outcome	Goal Action Outcome
Building professional aligned planner force with above market growth and productivity	• Continuing multi-brand approach to financial advice • AMP and AXA advice networks continuing to operate successfully in fee-for-advice environment • Continued to invest in paraplanning services • Launched My Money Choices, a scaled advice model • Financial Planning Centre rollout program continuing	• AMP’s aligned and employed planner network now Australia and New Zealand’s largest, with 4,048 advisers at July 2011 • Hillross acquired IRIS Financial Group, consisting of 12 practices and 37 advisers in August 2011 • 49 Horizons graduates in 1H 11; 347 advisers graduated to date • Strong retention of AXA advisers post-completion with 97% of network’s value retained • Net increase of 17 practices AMP/AXA networks from competitors • 500 planners now offering scaled advice • Paraplanning volumes up 52% on 1H 11; 12% more planners using service • Sydney Financial Planning Centre open; centre to open in Melbourne in September; more to open in 2012
Capitalising on a growing, more productive, domestic distribution footprint	• AMP Capital created four new roles in 1H 11 to capitalise on retail investment market opportunities created by group’s broader distribution footprint • Broadening relationships with IFA segment • Targeting corporate superannuation opportunities	• Combined group now has commercial relationships with 6,000 IFAs • 53% of AXA Elevate sales through IFAs in 1H 11 • Sales of AMP risk products through IFAs in 1H 11 up 72% on 1H 10 • 35% of 1H 11 AUM on North platform through IFAs – 13% of AFS’s individual risk API now sourced through IFAs • New client mandates won by SignatureSuper; net cashflows up 7% • AMP Flexible Super now has 1,400 employer plans and 8,000 customers
Expanding into select Asian investment management markets	• Expanded Japanese distribution capability • Increased product offerings in Japanese market with global listed infrastructure product • Established Bahrain office	• 9% of AUM now sourced from Asia • A$8b in AUM managed for Japanese clients • A$0.5b net cashflows from Asian clients in 1H 11, mostly from Japanese retail investors • Appointed as subadvisor for global listed infrastructure fund with Shinko Asset Management in March • Infrastructure Debt Fund has raised total of €241m; third closing scheduled and number of first-time institutional clients secured in Japan

58

Regulatory outlook – Future of Financial Advice

• AMP supportive of changes leading to better outcomes for consumers and an increase in confidence in the industry

• Also supportive of moves to lift 9% SGC to 12% over next decade

• Government response announced in April 2011 with exposure draft legislation expected in September, with the legislation to be introduced into the House of Representatives in November; some changes could take effect from 1 July 2012

Proposed change AMP position Action taken	Proposed change AMP position Action taken	Proposed change AMP position Action taken
• Prospective ban on super, pension and insurance product commissions	• Support proposed change	• Both AMP and AXA removed in-built commissions on super, pension and investment new business from 1 July 2010 • Moved to fee-for-advice business models across aligned network in July 2010
• Introduction of a statutory fiduciary duty so financial advisors must act in the best interests of their clients	• Support proposed change; will further enhance professionalism and consumer confidence in the advice industry	• Continuing to participate in consultation process – legislative drafting critical to achieving desired outcome
• Proposal to remove up-front and trailing commissions on insurance within superannuation • Minister has indicated he is reconsidering options on proposal	• Australia’s underinsurance levels likely to increase as a result of this policy • Will complicate insurance issue for consumers	• Working with Government to address concerns
• Prospective requirement for advisers to ensure clients opt-in every two years	• Unnecessary change, given planners’ proposed best interest duty	• Continuing to participate in consultation process
• Prospective ban on payments relating to volume or sales targets from any financial services business to dealer groups	• Volume-based payments are appropriate in parts of the industry, to the extent they don’t have potential to distort advice	• Continuing to participate in consultation process

59

Regulatory outlook – Stronger Super

• Stronger Super package includes introduction of new, low-cost and simple default superannuation product, MySuper

• Government-appointed peak consultative group consulting on four reform streams: MySuper, Governance, SuperStream and SMSF

• Government response to peak consultative group report expected 2H 11

Proposed change

AMP position

Action taken

• Providers will only be able to offer one MySuper product to the market

• Appropriate transition period before MySuper products replace existing default funds

• Auto-consolidation of superannuation accounts

• Support simpler, more transparent superannuation product offerings and pricing regimes for consumers who would benefit from a simpler solution

• Developed and launched simple, low cost superannuation option in 2010 – AMP Flexible Super (Core)

• Features include the ability to tailor the product to suit individual needs

• Providers should be able to tailor features and pricing to different employer groups to suit demographics, employee propositions and scale

• Developed flexible, asset-based administration pricing for North which (if final regulations allow) will enable platform to offer MySuper option within framework of a standard super product

• Contractual obligations regarding existing • Continuing consultation with superannuation arrangements must be Government recognised and dealt with appropriately

• • We support consolidation of accounts but • Introduced new, one-stop easy only as a result of active decision by consolidation service for consumer; we recognise there can be consumers in May, supported by legitimate reasons for maintaining more major advertising program than one account • Encouraging results to date

60