The Board has given incoming Chief Executive Officer Francesco De Ferrari a mandate to transform AMP and establish a new strategic direction for the business. In setting this strategy, the Board and Mr De Ferrari are committed to:

• returning to shareholders the majority of the net cash proceeds received on settlement of the sale, subject to unforeseen circumstances;
• removing approximately A$40 million (after tax) per annum of stranded costs by the end of the first full year post-separation (FY 2020); and
• offsetting the financial impact of unwinding distribution arrangements in the Australian wealth management business through revenue replacement and/or cost management. The distribution arrangements account for approximately A$65 million of the previously announced A$80-90 million per annum after tax.

AMP is also providing additional background information on the sale to assist investors. A brief information pack is attached and includes the following:

• portfolio review strategic rationale – delivering a simplified, less capital intensive business;
  • underlying profits of sold businesses – price achieved represents P/E multiple of
  approximately 11 times earnings;
  • alternatives considered in the portfolio review process;
  • reconciliation of embedded value for sold businesses;
  • underlying profits of continuing businesses; and
  • implications of the sale on AMP’s capital and debt position.

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