AMP provides update on growth strategy

88 Pages·2017·5.69 MB·English

by  Carla Salvatori

y25 May 2017

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

Key elements of the strategy include:
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 Tilt investment to higher-growth, less capital-intensive businesses. Release and recycle capital
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 Grow wealth management by broadening its revenue streams via increasing contributions from
advice and SMSF, while continuing to invest in product and platform development.
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 Build and integrate a goals-based advice operating system across face-to-face, phone, digital
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and corporate super employer channels. Explore options to extend advice capability and
systems into international markets.
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 Leverage AMP Capital’s investment management expertise in fixed income, infrastructure and
real estate to selected international markets, including Europe, North America and Asia.
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 Continue the rapid growth and increasing contribution of China businesses.
s Manage Australian wealth protection, New Zealand and mature for capital efficiency and value,
emerging embedded value as soon as possible.
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 Continue focus on costs to drive operational leverage.
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AMP Chief Executive Craig Meller said:
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“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.”

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“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
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structural increase in demand for investment yield as the world’s population ages.

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“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.
AMP Limited Public Affairs
33 Alfred Street, Sydney, NSW, 2000 T 02 9257 6127
ABN 49 079 354 519 E [email protected]
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.
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“The approach for our Australian wealth protection, New Zealand and mature businesses is to
lmanage them for value and capital efficiency. These businesses have significant embedded value
nand 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
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discipline right across the group.”

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

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Media enquiries Investor enquiries
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Lachlan Johnston Howard Marks

Phone: [phone] Phone: [phone]
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Adrian Howard Michael Leonard
Phone: [phone] Phone: [phone]
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Mobile: [phone] Mobile: [phone]

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Investor
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strategy day
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25 May 2017
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l Agenda
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9.00 am AMP strategy Craig Meller, CEO
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9.20 am China President Su, China Life
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Beng Neoh, MD North Asia, AMP Capital

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a 10.00 am Australian Wealth Management Jack Regan, Group Executive, Advice
Paul Sainsbury, Group Executive, Wealth Solutions and Customer
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o 11.25 am Morning tea (webcast paused)
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11.40 am AMP Bank Sally Bruce, Group Executive, AMP Bank
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e 12.00 pm AMP Capital Adam Tindall, CEO, AMP Capital
p – Multi-Asset Group goals-based fund Sean Henaghan, CIO and Director Multi-Asset Group
– Real Estate Carmel Hourigan, Global Head of Real Estate

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12.45 pm CEO close Craig Meller, CEO
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1.00 pm Lunch
Investor strategy day 2017 | 1
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Our purpose
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Helping people own tomorrow
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Investor strategy day 2017 | 2
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l AMP strategy
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e Trends: Demographic, social, behavioural, regulatory and technology
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Portfolio priorities Strategic priorities
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– Tilt to higher growth, capital
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light businesses
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– Rational competition
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– Distinctive competitive advantage
e – Expand internationally
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– Costs

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Investor strategy day 2017 | 3
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l AMP tomorrow
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Strong foundation for growth: #1 Super | #1 Advice | #1 SMSF | #2 Retirement income
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Domestic growth International growth

l – Continued leadership of Australian – Europe and North America: via higher margin
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wealth management: infrastructure and real estate assets
n – New revenue streams (advice and SMSF)
– China: pensions and asset management
o – Goals-based advice operating system driving
through partnership with China Life
greater productivity, and cashflows
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– Japan: retail and institutional partnership
r – Integrated debt and investment solutions
with MUTB
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in goals-based offers
p – Opportunity to leverage new wealth operating system
– Intermediated retail banking provider of choice

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Streamlined higher growth, capital light, internationally diverse portfolio
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AMP Strategy 2017 – 2022
AMP Strategy 2017 – 2022
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l Challenges Strong underlying thematics Emerging opportunities
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nt – Global scale in insurance – Ageing population (doubling of 60+ by 2050) – Structural search for yield due to ageing demographics
me – Intensifying competition – Mandated doubling of Australian superannuation system by 2026 – Exposure to Chinese domestic growth
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o – Commoditisation of financial platforms – Australian economy growing at 3% – Rise of consumer experience
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n – Shift to passive investment management – Increasing consumer demand for transparency, value, choice and experiences – Technology and business model disruption
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– Increasing regulatory scrutiny and requirements – Global capital in search of true alpha
e – Technology driving efficiency opportunities
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Helping people own tomorrow
u Manage for value and capital efficiency Invest to grow Leverage to drive new growth

l Goals-based advice
ano Strategy W– Lpmpseecoraaaealstlsrdiehgtsi inui goPngrlnrsoe o m bwuftraenaioltcdr mhtpkei elor at ny ers N– eShlowtiwgr oZh ngelygra o clpawoonmtsdhipt mieotnaitr iikvnee t, M– Lawbdaanteuiurtcdtghrl nieec nhaa siitpntguaightrb aa bmllleo lpy aopo rkrogolifi nts A– MHrePitg aBhial gbnrakonwkth –A d Lfi novaAi orAucgtesupe tsssrrttitanrr laaatiad lt ienavgi Wsyeer a lth Mana–Pgl aCocetoffomfrmoeperropimnnrrtagest :h&e re es nOtusa/piiSvle,e r A–– MSgcSattrProrpo euCannpbagg pi(l tMmiihttia eAuilnsGlt i) - asset G– lGciaonanblfopdarbaal psbaInrtliolrvlyiu.pt Mirceeetrsguct omyirnegt n .ised A– sTpwairanauintrdsht PtnM eCaedUrhrt siTnnhBeaipr Lssih f iep s G– lIoionnpbtnpeaoorlv nrOata/tutiSinvo e&int Oy aA l/f doSvr ice
and SMSF real assets
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o – Simplification focus public
and efficiency market strategies
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Focus on customer, cost and capital
O/S = operating system
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China
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President Su, China Life Pension Company
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e Beng Neoh, Managing Director North Asia, AMP Capital
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l Our strategy in China
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– Presence in China since 1997
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– Adopted long-term, capital-light strategy
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o – Activities have closely followed China’s
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s financial services liberalisation
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– Strategic partnership with China
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Life Group brings strong brand
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and distribution presence

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