AMP LIMITED — Investor Presentation 2017

May 24, 2017

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25 May 2017

AMP provides update on growth strategy

AMP is today providing an update on its group strategy and growth opportunities at its Investor Strategy Day, being held in Sydney.

The strategy will direct investment towards higher-growth businesses in wealth management, AMP Bank and AMP Capital; leverage AMP’s strengths in overseas markets; and maintain focus on driving cost efficiency.

Key elements of the strategy include:

• Tilt investment to higher-growth, less capital-intensive businesses. Release and recycle capital from lower-growth business lines to fund growth and returns.

• Grow wealth management by broadening its revenue streams via increasing contributions from advice and SMSF, while continuing to invest in product and platform development.

• Build and integrate a goals-based advice operating system across face-to-face, phone, digital and corporate super employer channels. Explore options to extend advice capability and systems into international markets.

• Leverage AMP Capital’s investment management expertise in fixed income, infrastructure and real estate to selected international markets, including Europe, North America and Asia.

• Continue the rapid growth and increasing contribution of China businesses.

• Manage Australian wealth protection, New Zealand and mature for capital efficiency and value, emerging embedded value as soon as possible.

• Continue focus on costs to drive operational leverage.

AMP Chief Executive Craig Meller said:

“Our strategy continues AMP’s shift from a product and distribution business to a customer-led organisation focused on helping our customers achieve their personal goals.”

“We are uniquely positioned to benefit from favourable domestic and global thematics including the mandated growth of the Australian superannuation system, a growing banking market and the structural increase in demand for investment yield as the world’s population ages.

“The strategy is focused on realising our potential while adapting to an increasingly competitive market place and technology-driven disruption.

“In Australia, we will continue to lead the wealth management market, changing the sector’s traditional economics by driving greater revenue from advice and self-managed super fund (SMSF) services. We will help more Australians get more advice, more often through our transformed goals-based operating system.

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

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

AMP_AU

AMP provides update on growth strategy…2

“We will also diversify and drive revenue growth internationally through investment management, particularly infrastructure and real estate, and by extending our unique wealth operating system to offshore players. Our partnerships with market leaders in China (China Life) and Japan (MUTB) provide strong platforms for future growth.

“The approach for our Australian wealth protection, New Zealand and mature businesses is to manage them for value and capital efficiency. These businesses have significant embedded value and we continue to look for ways to economically accelerate the realisation of this value.

“The strategy will be underpinned by a continuing focus on operational efficiency and cost discipline right across the group.”

More detail on AMP’s strategy is available in the attached presentation that is also available at www.amp.com.au/shares. A link to the webcast (starting from 9am AEST) is also available from this location.

Media enquiries

Investor enquiries

Lachlan Johnston Phone: +61 2 9257 9870 Mobile: +61 466 026 702

Howard Marks Phone: +61 2 9257 7109 Mobile: +61 402 438 019

Adrian Howard Phone: +61 2 9257 6781 Mobile: +61 413 184 488

Michael Leonard Phone: +61 2 9257 5207 Mobile: +61 466 773 093

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Investor strategy day

25 May 2017

Agenda

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9.00 am AMP strategy Craig Meller, CEO
9.20 am China President Su, China Life
Beng Neoh, MD North Asia, AMP Capital
10.00 am Australian Wealth Management Jack Regan, Group Executive, Advice
Paul Sainsbury, Group Executive, Wealth Solutions and Customer
11.25 am Morning tea (webcast paused)
11.40 am AMP Bank Sally Bruce, Group Executive, AMP Bank
12.00 pm AMP Capital Adam Tindall, CEO, AMP Capital
–
Multi-Asset Group goals-based fund Sean Henaghan, CIO and Director Multi-Asset Group
–
Real Estate Carmel Hourigan, Global Head of Real Estate
12.45 pm CEO close Craig Meller, CEO
1.00 pm Lunch
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Investor strategy day 2017 | 1

Our purpose own tomorrow Helping people

Investor strategy day 2017 | 2

AMP strategy

Trends: Demographic, social, behavioural, regulatory and technology

Portfolio priorities

Strategic priorities

– Large and growing markets

– Rational competition

– Distinctive competitive advantage

• Tilt to higher growth, capital light businesses

– Complete customer transformation

– Expand internationally

– Costs

Investor strategy day 2017 | 3

AMP tomorrow

Strong foundation for growth: #1 Super | #1 Advice | #1 SMSF | #2 Retirement income

Domestic growth

International growth

• Continued leadership of Australian wealth management:

• New revenue streams (advice and SMSF)

• Goals-based advice operating system driving greater productivity, and cashflows

• Integrated debt and investment solutions in goals-based offers

• Intermediated retail banking provider of choice

• Europe and North America: via higher margin infrastructure and real estate assets

• China: pensions and asset management through partnership with China Life

• Japan: retail and institutional partnership with MUTB

• Opportunity to leverage new wealth operating system

Streamlined higher growth, capital light, internationally diverse portfolio

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AMP Strategy 2017 – 2022

Challenges

• –Global scale in insurance

• Intensifying competition

• Commoditisation of financial platforms

• Shift to passive investment management

• Increasing regulatory scrutiny and requirements

Strong underlying thematics

• Ageing population (doubling of 60+ by 2050)

• Mandated doubling of Australian superannuation system by 2026 – Australian economy growing at 3%

• Increasing consumer demand for transparency, value, choice and experiences

• Global capital in search of true alpha

Emerging opportunities

• –Structural search for yield due to ageing demographics

• –Exposure to Chinese domestic growth

• –Rise of consumer experience

• –Technology and business model disruption

• Technology driving efficiency opportunities

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Helping people own tomorrow
Invest to grow
Goals-based advice
AMP Bank Australian Wealth Management AMP Capital
– High growth Advice strategy Platforms & O/S – Strong multi-asset
retail bank – Largest adviser – Comprehensive group (MAG)
footprint offering: retail, capabilities
in Australia corporate super – Strength in
and SMSF real assets
– Organic growth – Greater participation – Invest to further – Extend MAG
via integrated in advice value chain enhance platform capabilities
goals-based solutions – Drive productivity competitiveness – Create and
via technology – Goals-based O/S manufacture
– Become provider of – Drive professionalism – Increase channel innovative goals-
choice to advisers and brokers and broaden offer choice based funds
– Strengthen – Price for volume – Grow domestic real
– Conservative governance and – Grow revenue assets footprint
risk, funding and compliance from SMSF – Evolve and
capital settings
– Simplification focus public
and efficiency market strategies
Focus on customer, cost and capital
– Accelerate growth – Grow and extend – Accelerate
in Europe, North America and Asia partnership with China Life completion of O/S
– China Life O/S
– Organic and inorganic growth – Enhance MUTB partnership to opportunity
in high margin drive greater value – Seek partnering
real assets with other leading
O/S players
– Explore options to
disrupt overseas
– Continue progressive reinsurance to – Continue to manage for yield and cost efficiency – Continue to manage for yield and capital efficiency
release capital – Explore reinsurance
– Focus on pricing, opportunities
claims and lapse
management to
improve margins
– Globally recognised – Trusted – International
capabilities in infrastructure partnerships with China Life opportunity for innovative O/S
and property and MUTB
– Leading market
position with – Strong position in – Large stable profit
margins under highly competitive, and capital pool
pressure from low growth market with high margins
scale global players but naturally
declining book
Wealth Protection New Zealand Mature Global Inv. Mgmt. Asian Partnerships Global O/S & Advice
Manage for value and capital efficiency Leverage to drive new growth
Strategy
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O/S = operating system

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China
President Su, China Life Pension Company
Beng Neoh, Managing Director North Asia, AMP Capital
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Our strategy in China

– Presence in China since 1997

– Adopted long-term, capital-light strategy

China

– Activities have closely followed China’s financial services liberalisation

– Strategic partnership with China Life Group brings strong brand and distribution presence

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Why China Life?

– Largest financial services company in China outside the big 4 banks – the 5th pillar

– 200 million customers, national coverage, with distribution force of 2 million people

– Manages over RMB 5 trillion in assets

• World’s largest listed life insurance company by market capitalisation

– Ranked #54 in Global Fortune 500 companies in 2016

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Investor strategy day 2017 | 8

China Life Group

China Life Insurance

China Life Asset Management

China Life General Insurance

China Life Pension Company (CLPC)

E-China Life

China Life Insurance Overseas HK

China Life Investment Holdings

China Life Academy China Life AMP Asset Management (CLAMP ~~)~~ Guangdong Development Bank

Life insurance

Listed asset management

General insurance

Superannuation (Pensions)

E-commerce Overseas insurance Unlisted asset management

Distribution Funds management Banking

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China Life Pension Company (CLPC) Trustee, investment management and account admin services in pensions

President Su, China Life Pension Company

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CLPC overview

					377
– Established in 2007, now the largest pension insurance				301
company in China
– AMP	purchased	19.99% strategic stake in January 2015	222
for AUD$237 million
– Competes for pension (superannuation) business
across all of China’s 3-pillar system
– Continuing to invest to capture future
growth and market share			2014	2015	2016

Total combined AUM[1] (RMB billion)

• 1 Enterprise Annuities (EA) trustee, Enterprise Annuities (EA) investment management and individual pension product

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CLPC is growing well above system

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25 million 100,000
EA [1] market
EA [1] market 8.7% CAGR
5.9% CAGR
CLPC has grown
above average
12.5 million 50,000
system rates over
CLPC
CLPC
the past 5 years 7.9% CAGR
14.3% CAGR
0 0
2012 2013 2014 2015 2016 2012 2013 2014 2015 2016
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Growth in new members

Growth in new enterprises

• 1 EA – Enterprise Annuities

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A pension system to respond to a rapidly ageing population

2017 By 2030 Population 1.38 1.45 billion billion Median 36 43 age 60+ age 16.7% 25% group of total current population

• China’s pension system facing significant structural issues

• Population ageing with very low pension balances

– China’s evolving pension market is following similar reform path to Australia’s

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China’s pension industry

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Pillar 1 Pillar 2 Pillar 3
Compulsory Basic Enterprise Occupational Individual Pension
Pension Annuities (EA) Pensions (OP) Product (IPP)
Compulsory/voluntary Compulsory Voluntary Compulsory Voluntary
Applicable to Chinese citizens Corporate staff Civil servants Individuals
Responsible entity Government Corporates and individuals Individuals
Established 1997 2004 2016
– –
Source of Compulsory contribution Employers: Employers: Individuals
contributions from individuals and max 8% salary max 8% salary
– –
employers, fiscal subsidies Individuals: Individuals:
max 4% salary max 4% salary
AUM and RMB 3.9 trillion RMB 1 trillion Estimated to be 40 million Part of broader
coverage 858 million people 23 million people employees with annual contributions wealth
(end of 2015) (September 2016) in excess of RMB 200 billion once management
fully implemented market
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Licensing introduced for Pillar 2 providers

–	CLPC business focused on Pillar 2 market	Regime	Participants	Minimum pricing
–	In 2004 China introduced licensing requirements to compete in the Pillar 2			for service
	market (4 licences)	Trustee licence	11	– 10 bps
–	CLPC licensed across the three most important segments of Trustee, Investment	Investment management licence	21	– 60bps where solution includes domestic
	Management and Account Management			equities (up to 30%)
–	Pension industry protected from margin			– Similar to MySuper
	squeeze by a minimum pricing requirement	Account management licence Custodian licence	18 10	active solutions in Australia – RMB 1 per member account per month

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CLPC performance

Pillar 1

Compulsory Basic Pension

• At end of 2016, one of first few selected investment managers to manage the national basic pension fund investment

Direct sales

• Investment management fee

Pillar 2

Enterprise Annuities

• 1 in trustee services with 31% market share

• 3 in investment management with 12% market share

• 5 in account management

Direct sales Agents

• Trustee fee

• Account administration fee

Pillar 2

Occupational Pensions

• Competing to win business across each region of China. Nation-wide tendering process expected H2 2017

Direct sales

• Trustee fee

• Investment management fee

Pillar 3

Individual Pension Product

• Closed-end product sales exceeded RMB 35 billion for 200,000 clients

• Open-end product AUM exceeded RMB 20 billion for 5 million clients

Direct sales Agents Online/Social media platforms

• Investment management fee

• Investment management fee

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Outlook for Pillar 2 pension system

– Shift of workers from rural to urban continues

– Urban population grew 18% in the last 3 years

– Pillar 2 not currently compulsory, current penetration of Pillar 2 solution ~6% – Upcoming implementation of Occupational Pensions (OP) is the first sign of compulsion in China – 40 million civil servants through OP will drive approximately RMB 200 billion in annual contributions

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China Life AMP Asset Management Mutual fund products and separately managed accounts

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CLAMP overview

• Established October 2013, CLAMP is the fastest growing new funds management company in China

• AMP founding partner with 14.97% stake for AUD$14 million

• Distributes and manages investment solutions for retail and institutional clients

• CLAMP now a Top 30 fund manager in an industry with over 100 participants

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115
49
20
2014 2015 2016
Total AUM (RMB billion)
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CLAMP performance

• Launched more than 60 funds since inception

• Over 1 million retail investors

• 3,000 wholesale/ institutional investors in China

• CLAMP currently has various offerings through both SMA and retail channels covering:

Public Mutual Fund Market size: RMB 9.2 trillion as at December 2016

• Raised RMB 11.9 billion during initial public offering for inaugural fund, a record for a first-time fund launch by any Chinese fund management company

• – Flagship money market fund and fixed income fund continuously rank in top quartile Direct sales, agents, third party channels

Separately Managed Accounts (SMAs) Market size: RMB 4 trillion as at December 2015

• Fastest growing segment for CLAMP, with more stable cash flows than public mutual funds

Direct sales

• Money Market

• Fixed Income

• Active Equity

• Index

Investment management fee General market management fee rates: Retail:

• Balanced funds

• Money Market Fund: 0.30%

• Fixed Income: 0.60%

• Active Equity: 1.50%

• Index: 0.50%

• Balanced: 1.50%

• SMA: ~30 – 60% lower

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Future outlook

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Strong growth outlook for our business in China

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Core business areas Drivers of future outlook
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CLPC	Ofers pension	– Retail pension: current penetration is negligible
	solutions for corporate,	– Retirement age reforms
	institutional and	– Demographics – the one-child policy has created ‘4-2-1’ families where the children cannot support
	retail clients	their parents who must plan their retirement
		– Changing expectation to be more self-sufcient in retirement
		– Anticipated further tax incentives
CLAMP	Ofers domestic and	– Chinese population saves on average 40% of income. As the economy matures, savings looking for
	international funds in	investment opportunities beyond traditional bank deposits
	listed assets to retail	– Chinese government encouraging development of local capital markets
	and institutional clients	– Growth in asset base of local institutional investors (i.e. insurance companies, pension companies)
		looking to invest internationally
		– CLAMP received Qualifed Domestic Institutional License (QDII) allowing Chinese capital to be invested
		ofshore. While CLAMP still awaits their quota from regulators, AMP Capital is working closely with
		CLAMP on potential ofering in this market

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Future outlook for our business in China

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Inbound Outbound Domestic
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Strategy	– A trusted investment partner	– A preferred manager for Chinese	– A trusted strategic partner for
	to invest internationally	ofshore investments	China Life
	sourced capital in China
Drivers of	– Increasing demand for Chinese	– Increasing need for Chinese fnancial services	– Ongoing strong growth from
future outlook	assets when China is included	company to invest ofshore as regulations	our two businesses
	in global market indices	permit over time	– AMP continues to explore
		– China’s 3 sovereign wealth funds, with more	cooperation in other areas
		than RMB 6 trillion in AUM, will also increase	with China Life
		their ofshore investment
Potential	– Distribution fee	– Investment management fee	– Increase in value of equity stakes
sources of	– Investment management		– Future dividends
income for AMP	fee where CLAMP is the		– Potential inbound and outbound
	investment manager		cashfow opportunities

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Future outlook

• China pension industry set for rapid growth due to an ageing demographic

• China extremely focused on broadening and deepening its financial services industry, increasing customer share of wallet

• Outlook very positive for AMP’s two businesses CLPC and CLAMP

• CLPC business expected to benefit from its strong position in the fast growing pension market

• Ambition to grow CLPC AUM by over 20% pa over the next 5 years and continue to be the market leader in China’s pension market

• CLAMP business expected to continue growing strongly, extending its broad product offering. Intention to become a top 20 investment manager in China within 3 years

• AMP targeting earnings of around $50 million per annum from the China businesses within 5 years

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Australian wealth management

Craig Meller, CEO

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Driving new economics in wealth management

	Growth as % of
	average AUM
Investment markets	+8%
Customer fees	-1%
Margin compression	-4%
Net cashfow	+2%
Other revenue	0%
Growth	5%
@ 45% cost to income1	x 1.8
Annual operating earnings growth	9%

Advice and SMSF contribution 2%

Figures reflect back-tested actuals 2012 – 2017 (rounded) 1 Actual FY16 cost to income ratio: 45%

Investor strategy day 2017 | 26

Driving wealth management performance

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Improve Drive new
revenue
productivity
of our model streams
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AMP Advice and channel strategy Jack Regan, Group Executive, Advice and New Zealand

Investor strategy day 2017 | 28

More advice to more Australians more often

Need for advice has never been greater...

... but the role of face-to-face advisers is changing

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Population growth Rising financial
in older age brackets complexity of advice [2]
Superannuation
15% Financial
14%
Mortgage
SMSF Debt
Products
+41%
8% 8%
MSF Super
Financial
Complexity
Super
Debt
Age 0-30 31-60 61-75 75+
1 ABS, 2017 – 2022
(%)
Population growth1 i
Deb
ortg
Life insurance
M
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Positive impact

• 1 ABS, 2017 – 2022 2 Blackrock Global Investor Pulse Survey, 2013

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Rising complexity
Adviser as professional
services coach
Technical expert
Maturing artificial intelligence
and robo capabilities
Today Tomorrow
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Our advice distribution environment

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Headwinds Success factors of the future Opportunities from disruption
Regulatory scrutiny Conduct Capability Professionalism
Public perception Increasing financial
of advice complexity
Scale
Value chain Automation
disruption post FOFA and analytics
Business
Competition and Digitisation
margin compression Value systems and mobile
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Advice strategy: balancing today and tomorrow

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Scale Conduct Capability Business systems Value
– Profitable – Strengthened – Nurture –Leverage –Additional advice
Today growth of our governance professionalism investments margin delivering
market-leading and compliance and broaden in AMP Advice value to customer,
licensee businesses advice offer adviser and
shareholder
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Re-invent advice through AMP Advice
Tomorrow
Today 1H18 2H18
~200 advisers, 24 practices Core capability built Begin scaling model
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Delivering on the key success factors today

Scale				Conduct				Capability				Business systems				Value
– #1 adviser numbers1				– First to introduce				– One of frst to				– Current focus area				– Actively advised
– #1 advised AUM				independent				move on higher				for investment				customers have
and inforce premium2				oversight of complaints				education standards – Well above				(partnership with Salesforce)				NPS 3x higher than non-advised
				– First to commence				industry standard								– Revenue per
				ethical training				for professional								adviser 12% above
				for advisers				accreditation								peer average2
								across network2								– Licensee cost-to-
																income ratio 17%
																below peer median2

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• 1 ASIC Financial Adviser register

• 2 Source: Comparator – 2016 performance benchmark for financial planning businesses report

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Broad market offering with value concentrated in our core licensees

As at Dec 2016	Target market	Advisers	Mortgage consultants1	Total AUM (billion)	AUM per adviser (million)
AMP Advice Goals-based		203 13 $9bn $46m
AMP Financial Planning Core licensee ofer Charter Financial Planning Hillross		1,516 482 $57bn $38m
		783 29 $21bn $27m
		337 18 $14bn $41m
Total (core licensees)	–	2,839	542	$101bn	$36m
Jigsaw Self licensed		109 21 $1bn $9m
SMSF Advice Accountants		130 5 N/A N/A
Total (licensee services)	–	239	26	$1bn	$4m

1 Includes double count of 395 mortgage consultants included as advisers

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Driving performance today Grow our market-leading licensee businesses

	Scale			Conduct				Capability			Business systems				Value
	Proftable growth			Strengthened governance and compliance				Professionalism and broader advice ofer			Productivity underpinned by technology				Participate in advice value chain
–	Breadth of adviser		– Risk-based audits			–		Professionalism		– Practice management			–		Integrated servicing
	value propositions							with FASEA			solution (Salesforce)				to support succession
			– Analytics and key
–	Refreshed recruitment			risk indicators		–		AMP Academy		– Leveraging technology			–		Equity participation
–	Start-up ofers		– Systemised approach to advice			–		and career pathways Debt, cashfow			investments from new goals-based operating system				to drive mutual revenue growth
								and budgeting					–		Increase share of advice
								advice capability		– Scoped advice capability					margin from AMP Advice

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Driving performance today: business systems Partnering with Salesforce to reimagine advice practice management

Advice practice functions

Single practice management solution

Client information Document management

Ongoing client Practice and client Marketing and Practice and product account communications campaigns information management

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Workflow and diary Compliance and risk management management

Reporting and Practice revenue Practice operations Mobility analytics management performance management

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AMP is the natural home for advice

Our

More advice to more Australians more often

aspiration Strategy for today Strategy for tomorrow Growing advice margin	Scale Proftable growth of our market-leading licensee businesses Conduct Strengthened governance and compliance Capability Nurture professionalism and broaden advice ofer Business systems Leverage investments in AMP Advice Value Additional advice margin delivering value to customer, adviser and shareholder Re-invent advice through AMP Advice Increase share of advice margin from AMP Advice Equity participation to drive mutual revenue growth Integrated servicing to support succession The natural home of advice	Scale Proftable growth of our market-leading licensee businesses Conduct Strengthened governance and compliance Capability Nurture professionalism and broaden advice ofer Business systems Leverage investments in AMP Advice Value Additional advice margin delivering value to customer, adviser and shareholder Re-invent advice through AMP Advice Increase share of advice margin from AMP Advice Equity participation to drive mutual revenue growth Integrated servicing to support succession The natural home of advice
	Increase share of advice margin from AMP Advice	Equity participation to drive mutual revenue growth
Our opportunity	The natural home of advice

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Platform strategy

Paul Sainsbury, Group Executive, Wealth Solutions and Customer

Investor strategy day 2017 | 37

Highly competitive, comprehensive platform and product offering

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Category Target segment Market position Industry recognition
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Self managed	High net worth	Admin $22.5 billion	Core Data Awards (2016)
	Mass afuent	Rank #1	Winner Administrator of the Year (Member)
		Software $22.4 billion	Finalist in 4 other categories
		Rank #3	Selecting Super (2016)
			Finalist SMSF Administrator of the Year
Retail	Mass afuent	Retail Super $64.5 billion	Investment Trends (2017)
	Mass	Rank #1	Best new functionality (MyNorth)
		Non Super $15 billion	Canstar (2017)
		Rank #6	Outstanding value for account based pensions (AMP Flexible Super)
			Super Ratings (2017)
			Platinum ratings: MyNorth (Super and Pension), Flexible Super
			(Retirement)
Workplace	Mass afuent	Retail Corp Super	Heron Partners (2017)
(Corporate)	Mass	$29.8 billion	Top rating: Corporate and pension products
	Youth	Rank #1	Super Ratings (2017)
			Platinum rating: Signature Super and Signature Super Select

Source: Self Directed ATO Statistics and Market Analysis – December 2016, Retail and Workplace – Strategic Insight (Plan for Life, December 2016)

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Product and platform rationalisation drives efficiency – investment drives growth

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Category Systems Products/Platforms Channels Enhancements (in progress)
From To From To From To
Self directed 8 1 – Adviser – Adviser – Product marketplace
– – –
Accountant Accountant Portfolio services
– –
Direct Enhanced integration
–
Mobile access
Retail 11 3 – Adviser – Adviser – SMAs
– –
Direct Enhanced CMA
11 3
– –
Digital Tax optimisation
–
Adviser productivity
Workplace 9 2 – Adviser – Adviser – SME offer enhancements
– – –
Employer Employer Pension payment planner
– –
Direct Customer lifetime management
– –
Digital Phone-based advice
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Unbundling ‘mega platforms’ provides flexibility and agility

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Web portals Mobile Contact centre Advice
Customer experience and servicing
–
Whole of wealth approach
–
Salesforce and Adobe delivery layers
Customer and adviser Business process
relationship management management
Identity and data Analytics Marketing campaigns Non-AMP Customer data and analytics
management – Single customer view
–
Analytics
–
Omni-channel campaign capabilities
Banking Super / investments Insurance Product administration
–
Product efficiency
–
Category differentiation
–
Innovation
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New SMSF platform creates opportunity for revenue growth

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Online portal
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Professional administration Revenue model: Admin fee per trust

Accounting system Revenue model: License fee per trust

Portfolio services Revenue model: Margin on consumption

Product marketplace Revenue model: AUM/premium based

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Clear platform strategy to drive growth

– Scale in platforms – highly competitive, comprehensive offering

– Platform simplification drives efficiency

– Funded investment to maintain market-leading features and functionality

– Revenue growth equivalent to 1%+ of AUM from SMSF

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Building the wealth manager of the future

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Why goals – the benefits

Practical

Emotional

Investor strategy day 2017 | 44

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Customer goals
Provide the best
Be debt free Buy a home Career gap year Career restart
education
Further my Save for Retirement living
Create an inheritance Fix my cashflow education Gap year something big Pursue a passion Retire right options
Give them the Spend my kids Start accessing Start my own
Get married Growing our family Insure my life Support someone
best chance inheritance my super business
Take control of We’re married
Invest in property Now there’s three of us Property for my kids Protect my income Work overseas Their wedding
my finances now what
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Investor strategy day 2017 | 45

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AMP goals-based wealth operating system
explore plan track realise
Make an Define and prioritise Understand current situation, Agree brief Review and plan next Check in, reflect
AMP Advice appointment goals with coach goals and trade-offs with adviser and pay steps with adviser and celebrate
MyAMP
Goals explorer
Engage Goals – Get to know me experience Scenario Fulfillment
and new existing Considermy goals Digital engagementexperience – Aggregate my data Today Tomorrow summaryMy goals engineGoals experiencetrade-offs engineGoals planMy onboardingexperienceand My goalstracker Achievegoals
customers – Book a Explore, plan and
goals session prioritise goals
– Find an
adviser
Contact AMP to Discuss goals summary Validate scenarios Review and Access help
Direct ask questions with AMP team with AMP team plan next steps at any time
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Investor strategy day 2017 | 46

Customer engagement supported by market-leading technology suite

Capabilities	Tools	– Contemporary
		technology model
Marketing automation and customer experience decisioning		– Cutting edge plug and play capabilities delivered via
		the cloud
Data analytics and visualisation
		– Flexibility to upgrade
Structured data		at low cost
		– Real-time engagement
Data engineering		across all contact channels
Unstructured data
Data lake storage
Batch and real-time data ingestion

Investor strategy day 2017 | 47

Data aggregation supports our customers’ most immediate needs

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Investor strategy day 2017 | 48

AMP Goals Explorer blends technology and human ‘coaching’

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Investor strategy day 2017 | 49

Modelling engine transforms the delivery of goals-based advice

Goal principles

• Achievability of customers’ goals is the benchmark for advice success

• Goals modelling enables decisions to be based on goal achievability

Whole of wealth projections

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Intuitive, visualised advice decisions Innovative goals-based product solutions

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• Determines ability to fund future goals

• Shows impact of uncertainty over time and importance of priority

• Provides data to allow objective and transparent decision making

• Visualises impact and value of advice in context of goals

• Calculates investment, insurance and debt solutions to best support goal achievement

• Recommends products to meet individual goal requirements

Investor strategy day 2017 | 50

Deep understanding of customer enables innovative product design

Bett3r

• Manages money in Pay, Save and Spend buckets

• Digital online account opening

• Visualisation and in-app help change behaviour

Investor strategy day 2017 | 51

Ongoing engagement tools help track progress against goals

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Investor strategy day 2017 | 52

Contact AMP to ask questions Direct Make an appointment AMP Advice sider oals Goals engagement experience – Get to know me – Aggregate my data – Book a goals session – Find an adviser MyAMP Digital explore AMP Goals 360		plan			track			realise
		Defne and prioritise goals with coach Underst goals and			Agree brief and pay and current situation, trade-ofs with adviser			Check in, refect and celebrate Review and plan next steps with adviser
		My goals summary Goals engine Goals explorer experience Today Explore, plan and prioritise goals Tomorrow			Goals engine Scenario trade-ofs experience			My plan Fulfllment and onboarding experience My goals tracker Achieve goals
		Discuss goals summary with AMP team			Validate scenarios with AMP team			Access help at any time Review and plan next steps

Investor strategy day 2017 | 53

Building the wealth manager of the future

• Differentiated, highly engaging goals-based customer experience

• One system for customers, advisers and AMP

• True omni-channel experience – broadening customer channel choice (F2F, digital and direct)

• Optimal blend of human interaction and best-of-breed technology

• Drives efficiency, productivity, consistency and flows

Investor strategy day 2017 | 54

AMP Bank

Sally Bruce , Group Executive, AMP Bank

Investor strategy day 2017 | 55

AMP Bank today – a bank within a wealth manager

Established distribution Strong profit growth/ momentum capability

• –

• FY16 $120 million OPAT Largest adviser á 15% YOY network in Australia

• Strong broker network (+50% of all AMP Bank home loans)

• Q1 mortgage growth of 5%

• Q1 deposit growth 5%

• Earnings CAGR of 17.9% (2012–2016)

• 10% of Group earnings

Growing market

• Credit growth 7%

• Less than 1% market share

Strong balance sheet and risk position

• Deposit to loan ratio of 67%

• Conservative risk settings

• Home loans 90+ days in arrears 35% lower than average of the majors

Double value of AMP Bank over 5 years

Investor strategy day 2017 | 56

Three key strategic questions

1. Can you grow this business faster?

• Balancing strong growth with scale infrastructure build out

2. Are you comfortable with your level of risk against your high growth?

• Doubled contribution while tightening risk settings and maintaining margins

• Strengthening vintage performance

3. What is your competitive advantage?

• To be the intermediated bank of choice

• A bank within a wealth manager

• Connection to customers goals

• Better than majors’ and peers’ arrears performance

Investor strategy day 2017 | 57

Using competitive advantage to become the intermediary bank of choice

Customer lifecycle

Channel

Goals

• – –

• +50% of all home Aligned with AMP Opportunity to lending activity goals philosophy engage early via brokers

• Majority of 29

• – 25% of advisers customer goals originate debt involve bank product with AMP

• Diversified

• AMP revenues

• – Amplifies AMP investment in the network and goals

• – >10% of earnings contributions

A bank within a wealth manager

Investor strategy day 2017 | 58

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

Role of AMP Bank
in goals
Provide the best
Be debt free Buy a home Career gap year Career restart
education
Further my Save for Retirement living
Create an inheritance Fix my cashflow education Gap year something big Pursue a passion Retire right options
Give them the Spend my kids Start accessing my Start my own
Get married Growing our family Insure my life Support someone
best chance inheritance super business
Take control of We’re married
Invest in property Now there’s three of us Property for my kids Protect my income Work overseas Their wedding
my finances now what
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Investor strategy day 2017 | 59

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Role of AMP Bank
in goals
Provide the best
Be debt free Buy a home Career gap year Career restart
education
Further my Save for Retirement living
Create an inheritance Fix my cashflow education Gap year something big Pursue a passion Retire right options
Give them the Spend my kids Start accessing my Start my own
Get married Growing our family Insure my life Support someone
best chance inheritance super business
Take control of We’re married
Invest in property Now there’s three of us Property for my kids Protect my income Work overseas Their wedding
my finances now what
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Investor strategy day 2017 | 60

85

AMP Bank: early engagement in the customer life cycle

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

Getting ready Stop
for retirement work Property
Graduate for the kids
Child’s Travel and Retirement
Move out wedding community living options
educationHigher of home Home Downsize work
renovations Aged
Invest in
Start a care
First property
business 65
job Buy a 75
home Growing
55
First the family
child
Age 18
27
45
Today’s AMP relationship
Traditional AMP relationship
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Today’s AMP relationship Traditional AMP relationship

Investor strategy day 2017 | 61

AMP Capital growth strategy

Adam Tindall , Chief Executive Officer, AMP Capital Sean Henaghan , CIO and Director, Multi-asset Group, AMP Capital Carmel Hourigan , Global Head of Real Estate, AMP Capital

Investor strategy day 2017 | 62

Our vision

To be a pre-eminent global investment manager

Investor strategy day 2017 | 63

AMP Capital investment capabilities

						Infrastructure					Real estate					Multi-asset					Equities					Fixed income
		AUM				$12 billion					$22 billion					$84 billion1					$24 billion					$60 billion
		Investment professionals				67					62					32					42					41

• 1 $40 billion managed by AMP Capital Equities and Fixed Income

Investor strategy day 2017 | 64

AMP Capital business potential

Strong Deep double digit relationships growth contribution with partners Suite of 5 key hubs market leading with 25% employees investment solutions based internationally targeting deep global pools

400+

international clients Potential for inorganic acceleration

Investor strategy day 2017 | 65

AMP Capital clients and partners – Australia and New Zealand

– $110 billion managed on behalf of AMP customers – 112 institutional clients investing $22.2 billion

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Investor strategy day 2017 | 66

Multi-Asset Group

Investor strategy day 2017 | 67

Goals-based investing

– Full spectrum of return sources

– Flexible approach to management

$1.1 billion	$1.8 billion	$1.7 billion	Future Cash Flow	MyNorth Retirement	$14 billion
Multi Asset Fund (2010)	Income Generation (2010)	Dynamic Market Fund (2011)	Range (2016)	Fund (2016)	MySuper (2016)

Investor strategy day 2017 | 68

International growth

Investor strategy day 2017 | 69

AMP Capital clients and partners – China

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– Beijing office opened 1997

• China Life AMP Asset Management Company Limited fastest growing new funds management company in China

• – First foreign company to acquire stake in Chinese pension company, China Life Pensions Company

• Total combined AUM RMB 452 billion

Investor strategy day 2017 | 70

AMP Capital clients and partners – Japan

MUFG Trust and Banking[Mitsubishi UFJ ]

– Japan presence since 2001

– 2012 strategic alliance agreement – 2017 enhanced business alliance agreement – $1.5 billion managed on behalf of MUTB

Investor strategy day 2017 | 71

AMP Capital clients and partners – international institutional clients

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– Over 200 clients investing $18 billion FUM – Client numbers doubled in 3 years – 130 employees in 11 international offices

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Investor strategy day 2017 | 72

Creating value for clients and shareholders in real assets

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2016
Growth in funds 2015
under management $36 billion
2014 $33 billion
2013
$29 billion
2012
$25 billion
$23 billion
–
Best people
–
Quality assets
–
Active management and development
–
Global platform
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Investor strategy day 2017 | 73

AMP Capital global infrastructure equity Top 10 infrastructure business

$10 Landmark 88 #1 US$2.4 billion transactions international infrastructure billion and strong clients fund in AUM Global for ESG deal flow Infrastructure Fund

Investor strategy day 2017 | 74

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Global infrastructure equity
Track record of innovative transactions
Sold
Thames
Water
Port Headland Royal North Eastern Sold GIF acquisition
international Shore Hospital Goldfields Duquesne of APAC
airport Prison PPP
Feb Mar May Aug Sep Oct Nov Jan Feb Mar Apr May
Atalaya
(Spanish
AquaSure
broadcasting
Adven (Nordic Chicago Loop (Victorian Valley
infrastructure
energy company) parking desalination plant) Healthcare Endeavour
provider)
Pantheon
acquisition
of APAC
< 2016 2017 >
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Investor strategy day 2017 | 75

Infrastructure debt funds (IDF) 136 clients investing $3.5 billion

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Target
$2 billion
Notable deals
$1.5 billion – Invenergy Thermal (Oct 2015)
–
Carlsbad Desalination Plant (Apr 2016)
–
Solør Bioenergi (Apr 2017)
$675 million
IDF I IDF II IDF III
(2012) (2014) (2017)
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Investor strategy day 2017 | 76

Real estate

Investor strategy day 2017 | 77

AMP Capital real estate Over 60 years creating exceptional experience $23 billion 27 $3 billion $5 billion in shopping developments development AUM centres completed pipeline One of the 450+ 56 +2.9 million largest real estate office and sqm of direct real estate professionals industrial assets lettable area

One of the largest direct real estate fund managers

Investor strategy day 2017 | 78

Integrated real estate management model

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and clients
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Investor strategy day 2017 | 79

Real estate assets under management A five year journey of growth

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$23b [2]
$0.3b
$0.5b
$1.5b
$0.9b
$1.4b
50% growth in
$1.3b funds under
$1.8b management
$15.3b [1]
2011 AWOF ASCF WAPF ADPF ACRT SA1 SA2 2016
Closing Closing
FUM Core funds Separate accounts FUM
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1 Includes 47 external institutional investors

2 Includes 73 external institutional investors

Investor strategy day 2017 | 80

Real estate investment highlights 2016 – 2017 Creating value for our clients

85% of FUM

exceeded client goals Leveraging our global platform

Over

Total capital raised $1.3 billion in 2016

$2 billion $1 billion $1.3 billion in investment capital raised transactions in 2016 YTD in 2017 Over 10 new $3 billion $5 billion institutional development investors pipeline completed future development pipeline

Investor strategy day 2017 | 81

Delivering on our clients’ development pipeline

200 George Street

• $400 million value on completion

• 24.8% total return (Project IRR)

• 6 star Green Star (V3) Design and 5 star NABERS Energy

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Pacific Fair
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• $670 million value on completion

• Largest centre in Queensland, 4th largest in Australia

• Most extensive luxury retailer mix in Australia

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Macquarie Centre
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• $450 million redevelopment

• Largest centre in Sydney and NSW

• Significant further development opportunity including mixed use as part of Macquarie Town Centre masterplan

Investor strategy day 2017 | 82

Quay Quarter Tower

Investor strategy day 2017 | 83

Investing for growth

Investor strategy day 2017 | 84

AMP tomorrow

Strong foundation for growth: #1 Super | #1 Advice | #1 SMSF | #2 Retirement income

Domestic growth

International growth

• Continued leadership of Australian wealth management:

• New revenue streams (advice and SMSF)

• Goals-based advice operating system driving greater productivity, volume and cashflows

• Integrated debt and investment solutions in goals-based offers

• Intermediated retail banking provider of choice

• Europe and North America: via higher margin infrastructure and real estate assets

• China: pensions and asset management through partnership with China Life

• Japan: retail and institutional partnership with MUTB

• Opportunity to leverage new wealth operating system

Streamlined higher growth, capital light, internationally diverse portfolio

Investor strategy day 2017 | 85