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Ameriprise Financial, Inc. Barclays Global Financial Services Conference Supplemental Handout September 8, 2014
© Copyright 2014 Ameriprise Financial, Inc. All rights reserved.
Forward-looking statements and non-GAAP financial measures
Forward-Looking Statements The forward-looking statements in this presentation reflect management’s expectations about future events, plans and performance. These forward-looking statements and the many assumptions upon which they are based involve risks and uncertainties. A list of factors that could cause actual results to be materially different from those expressed or implied by any of these forward-looking statements is detailed under the headings “Forward-Looking Statements” and “Risk Factors”, and elsewhere, in our Annual Report on Form 10-K for the year ended December 31, 2013. These forward-looking statements speak only as of today's date and we undertake no obligation to update publicly or revise them for any reason.
Non-GAAP Financial Measures This presentation contains certain non-GAAP financial measures that our management feels best reflect the underlying performance of our operations. Reconciliations of such non-GAAP financial measures to the most directly comparable GAAP financial measure have been provided along with the presentation.
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Ameriprise Financial
A diversified financial services leader with a consistent record of outperformance; well-positioned for future growth
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We advise, manage and protect assets and income for retail, high-net-worth and institutional clients
Financial Strength & Stability
Advice & Wealth
Management
Asset Management
Protection & Annuities
4
Our integrated business creates unique benefits
Deep, long-term client relationships
Strong client asset retention and persistency
Diverse revenue streams across
market cycles
Valuable expertise across businesses (e.g. investment management
and risk management)
Leading returns with lower volatility
vs. peers
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Advice & Wealth Management
A leading wealth manager in the U.S., generating excellent results with significant growth opportunities
Advice & Wealth
Management
Asset Management
Protection & Annuities
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$24 $26
$36 $41
2009 2011 2013 2015E
$ in trillions
Trends – Growth in U.S. Investable Assets and Baby Boom Generation Entering Retirement
A significant U.S. wealth management opportunity
See appendix for source information
• 66% of assets controlled by underserved mass affluent and affluent households
• 82% of workers think it’s very or somewhat important to work with an advisor who specializes in converting assets to retirement income
• 82% of workers are not “very confident” that they will have enough money to live comfortably in retirement
Millions of Boomers
2011 2015 2019 2023 2027 2031 2035 2039 3.0
3.4
3.8
4.2
First Boomers retire
Peak year of retirements
Last Boomers retire
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Well-positioned to take advantage of market opportunities
Data as of 6-30-14 – see appendix for source information
Advice & Wealth Management
Leader in financial planning in the U.S.
Nationally recognized brand
9,700 financial advisors
#2 mutual fund advisory program
#5 retirement and advice provider
#8 IRA provider
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Executing our growth strategy
Deliver an excellent client experience to
grow our client base, including more affluent clients
Deepen client relationships with
our comprehensive advice and solutions
tailored to client needs
Build on our attractive advisor value proposition
for a highly productive
and growing advisor force
Revenue and earnings growth
Strong capabilities, tools and leadership
+ +
1 2 3
4
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Our brand experience resonates with consumers and reinforces our retirement leadership
TV advertising
3-Minute Confident RetirementSM check
Advisor websites ameriprise.com
Online advertising and search
Social media
Seminars
Excellent client experience 1
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$270 $310
$435
2009 2011 6-30-2014
Strong growth in client assets
$ in billions
Total Ameriprise Client AUM
CAGR +11%
Mass affluent and affluent clients up 32%
since 2009
Mass affluent and affluent assets up 76%,
since 2009
Excellent client experience 1
11 Data as of 6-30-14
We serve our clients with a full-service advice and solutions platform
Comprehensive advice and solutions 2
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$7.9 $7.3
$13.1
2009 2011 TTM 6-30-14
Strong growth of fee-based business
$ in billions
Investment advisory / wrap net inflows
$81 $103
$168
2009 2011 6-30-2014
$ in billions
Investment advisory / wrap AUM
Fee-based business drove ~75% of 2013 AWM
operating net revenues
Comprehensive advice and solutions 2
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$13.0
$14.8
$18.5
2009 2011 6/30/2014
A large cash business
Brokerage Cash
Future growth opportunity: assets clients can deploy and potential earnings
as interest rates rise
$ in billions
Comprehensive advice and solutions 2
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Our advisor value proposition: The Ameriprise Difference
Culture and
Commitment
Dedication and
Support
Opportunity and
Reward
Advisor value proposition 3
15
$265
$371
$468
2009 2011 6-30-2014
Delivering strong advisor productivity gains
See non-GAAP financial measure reconciliations in appendix.
$ in thousands
Operating Net Revenue per Advisor, excluding former banking operations – trailing twelve months
CAGR +13%
Advisor value proposition 3
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Advice & Wealth Management: Realizing the benefits of our investments
Excludes impact of banking operations in 2009 and 2011 See non-GAAP financial measure reconciliation in appendix.
Advice & Wealth Management Pretax Operating Earnings
Advice & Wealth Management Pretax Operating Margin
$29
$357
$687
2009 2011 TTM 6-30-14
1.1%
9.9%
15.1%
2009 2011 TTM 6-30-14
$ in millions
Revenue and earnings growth 4
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Protection & Annuities
A differentiated business designed to meet client long-term needs and deliver strong returns
Advice & Wealth
Management
Asset Management
Protection & Annuities
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Our differentiated businesses deliver for clients, advisors and shareholders
Data as of 6-30-14 – see appendix for source information
Protection & Annuities
Top 10 Life Insurance and Annuity carrier
Core solutions essential to our
Confident Retirement approach
Affinity-based Auto & Home provider with a
leading client experience
$100+ billion client AUM
100% affiliated distribution for life, health and variable annuities
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Permanent life insurance with long term care riders
Annuities Cash value life
insurance
Immediate annuities and guaranteed minimum
withdrawal benefits
RiverSource solutions help us deliver our Confident Retirement approach
Permanent life insurance
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Operating Net Revenues Pretax Operating Earnings
Allocated Capital Operating Return on Allocated Capital
$ in millions $ in millions
$ in millions
$1,015
TTM 6-30-14
$4,431
2Q 2014
$4,822
TTM 6-30-14
16.3%
TTM 6-30-14Operating Return on Allocated Capital, Excluding LTC Operating Return on Allocated Capital
18.2%
Delivering strong Protection and Annuity financial returns
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Asset Management
A competitive asset manager, delivering strong results, establishing a global platform
Advice & Wealth
Management
Asset Management
Protection & Annuities
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A competitive asset management business and a solid foundation for growth
Assets as of 6-30-14, performance as of 6-30-14. Past performance is no guarantee of future results. See appendix for source information
Asset Management
$518 billion in AUM
#11 manager of long-term mutual funds in the U.S.
Top 5 retail ranking in the UK
113 four- and five-star Morningstar-rated funds
Established institutional presence
Increasingly global footprint
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57% Retail
35% Inst.
1% Alt
56% Equity
38% Fixed
Income
1% MM
A balanced business
Data as of 6-30-14 AUM by Entity Type – excludes $3 billion in assets Threadneedle subadvises for Columbia
By Entity Type By Client Type By Asset Type
$ in billions
$360
$158
Q2 2014 Asset Management AUM – $518 billion
7% Owned Assets
1% Alt
4% Hybrid
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An established, competitive asset manager
Data as of 6-30-14 Source: US – ICI, UK – investmentuk.org
U.S. AUM: $362 billion
9 locations
EMEA AUM: $151 billion
12 locations
Asia-Pac AUM: $5 billion
6 Locations
• Full investment capability
• #11 manager of long-term mutual funds
• Progress in third-party retail with more work to do
• Competitive institutional capability
• Full investment capability
• Top 5 retail ranking in UK
• Strong wholesale/retail momentum
• Competitive institutional capability
• Building local presence
• Established institutional pipeline beginning to mature
• Building investment management capability
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Our strategy: earn higher-fee business complemented by strategic relationships
Assets Under Management
63%
37%
Third party distribution Former parent assets and affiliated distribution Ameriprise affiliated
42%
15%
43%
24%
76%
37%
26%
37%
2003 2013
2010 2013
Former-parent related revenue now ~15% of total
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Delivering purpose driven performance, investment insight
and expertise
Integrating global product and brand
capability
Creating efficient and effective operating
models while effectively managing risk
Retaining and rewarding our people
with a values-led culture
Gain share in traditional products and
markets
Gain share in global products
Deliver client-focused
outcomes, strategies and
solutions
Gather assets beyond U.S.
and UK/Europe
Priorities to drive consistent, profitable net inflows
Ena
bler
s
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Growing AUM
$ in billions
Asset Management AUM
$243
$436
$518
2009 2011 6-30-2014
CAGR +18%
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Delivering strong financial results
$ in millions
Asset Management Pretax Operating Earnings
Asset Management Adjusted Net Pretax Operating Margin
$93
$528
$741
2009 2011 TTM 6-30-14
11%
33%
39%
2009 2011 TTM 6-30-14
See non-GAAP financial measure reconciliations in appendix 29
Ameriprise Financial
Financial Strength & Stability
Advice & Wealth
Management
Asset Management
Protection & Annuities
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Key drivers of current success and future growth
Significant cash flow generation
Profitable business growth
Return capital to
shareholders
Meet client and advisor needs
Shareholder value creation
Margin expansion
Strong Enterprise Risk Management framework 31
$429
$631
$810
2009 2011 6-30-2014
Significant growth in assets under management and administration
CAGR +15%
$ in billions
Assets Under Management and Administration
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Strong revenue growth
See non-GAAP financial measure reconciliations in appendix. 2009 and 2011 exclude results from former banking operations.
$7.2
$9.9 $11.2
2009 2011 TTM 6-30-14
$ in billions
Operating Net Revenue
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CAGR +10%
$721
$1,274
$1,585
2009 2011 TTM 6-30-14
$2.95
$5.17
$7.90
2009 2011 TTM 6-30-14
Strong earnings and EPS growth
See non-GAAP financial measure reconciliations in appendix.
$ in millions
Operating Earnings Operating Earnings Per Share
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CAGR +19%
CAGR +24%
Excellent returns
See non-GAAP financial measure reconciliations in appendix.
10.7%
21.7%
2009 6-30-2014
+1,100 bps
Ex. AOCI
Operating Return on Equity
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Consistently exceeding financial targets through strong business growth
Pretax Operating Earnings
4%
8%
39%
49%
28%
30% 12%
30%
2009
TTM 6-30-14
Annuities Protection Asset Management
Advice & Wealth Management
Excluding Corporate & Other segment
12% 58%
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$212 $314
$411 $215
$1,456 $1,340
$1,481
$706
2011 2012 2013 1H 2014
Dividends Share Repurchases
$0.5
$2+
2009 6-30-14
Excess Capital Contingent Capital Supporting VA Required Capital
Approximately $2
Risk discipline supports strong capital return while maintaining a strong capital base
1. 2009-1H 2014 dividends and share repurchases
Returned over $7 billion1 to shareholders
Returning Capital to Shareholders Capital Base
$ in millions $ in billions
$1,668
$9.5 $9.6
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$921
$1,892
$1,654
Further business mix shift can drive higher ROE
Pretax Operating Earnings
Annuities Protection Asset Management
Advice & Wealth Management
TTM 6-30-14 Multi-Year Opportunity
Key growth segments can grow to
70% of earnings
28%
30% 12%
30%
38
Excluding Corporate & Other segment
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Source information
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A significant U.S. wealth management opportunity Investable assets – Survey of Consumer Finance Baby Boomers entering retirement – Pew Research Center 66% of assets controlled by mass affluent and affluent – Survey of Consumer Finance 82% of workers think it’s very or somewhat important to work with an advisor who specializes in converting assets to retirement income – EBRI 2013 Retirement Confidence Survey 82% of workers not “very confident” that they will have enough money to live comfortably in retirement – EBRI, 2014 Retirement Confidence Survey Well-positioned to take advantage of market opportunities Financial planning leader- Ameriprise helped pioneer the financial planning process more than 30 years ago. We have more financial planning clients and more CERTIFIED FINANCIAL PLANNER™ professionals than any other company in the U.S. based on data filed at adviserinfo.sec.gov and documented by the Certified Financial Planner Board of Standards, Inc., as of Dec. 31, 2013. #8 IRA provider -- Cerulli Edge – Retirement Edition – Q2 2014 #5 retirement and advice provider – Cogent Research Investor Brandscape -- 2012 #2 mutual fund advisory program -- The Cerulli Edge Managed Accounts Edition, AUM as of 2Q 2014 Our differentiated businesses deliver for clients, advisors and shareholders Top 10 insurance and annuity firm -- No.6 variable universal life insurance provider (total assets): LIMRA International, 4Q 2013; No. 8 variable annuity provider (total assets): Morningstar Annuity Research Center, Variable Annuity. 3Q 2013 data A competitive asset management business and a solid foundation for growth #11 US long-term mutual fund – ICI Complex Assets, as of 6-30-14 Top 5 retail ranking in the UK – investmentuk.org, as of 6-30-14
Reconciliations
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Reconciliations
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Reconciliations
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Reconciliations
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