Prudential Financial, Inc. · NYSE:PRU
Prudential Financial — Investor Day (December 2007)
12 slides from Prudential Financial's investor day presentation, Dec 4, 2007
Slide 1: Prudential Financial, Inc. Investor Day
Exhibit 99.2 Prudential Financial, Inc. Investor Day December 4, 2007 1 Investor Day 12.04.07
Slide 2: Forward-Looking Statements
Forward-Looking Statements Certain of the statements included in this presentation constitute forward-looking statements within the meaning of the U.S. Private Securities Litigation Reform Act of 1995. It is possible that actual results may differ materially from any expectations or predictions expr
Slide 3: Non-GAAP Measure
Non–GAAP Measure Adjusted operating income is a non-GAAP measure of performance of our Financial Services Businesses.Adjusted operating income excludes "Realized investment gains (losses), net," as adjusted, and related charges and adjustments. A significant element of realized investment gains and
Slide 4: Reconciliation between adjusted operating income and the comparable GAAP measure
Reconciliation between adjusted operating income and the comparable GAAP measure Prudential Financial, Inc. Year ended December 31, (in millions, except per share data) 2002 2003 2004 2005 2006 Financial Services Businesses: Pre-tax adjusted operating income by division: Insurance Division $ 545 $ 7
Slide 5: Reconciliation between adjusted operating income and the comparable GAAP measure (continued)
Reconciliation between adjusted operating income and the comparable GAAP measure (continued) Prudential Financial, Inc. Nine months ended (in millions, except per share data) Sept 30, 2006 Sept 30, 2007 Financial Services Businesses: Pre-tax adjusted operating income by division: Insurance Division
Slide 6: Reconciliation between adjusted operating income and the comparable GAAP measure (continued)
Reconciliation between adjusted operating income and the comparable GAAP measure (continued) Prudential Financial, Inc. COMBINED STATEMENTS OF OPERATIONS - FINANCIAL SERVICES BUSINESSES Year ended December 31, Nine months ended (in millions) 2002 2003 2004 2005 2006 Sept 30, 2006 Sept 30, 2007 Reven
Slide 7: FSB Full Year 2008 Earnings Guidance
FSB Full Year 2008 Earnings Guidance $8.20 - $8.40 Baseline Earnings 2007 Guidance (1) Growth Non-Recurring $7.45 - $7.60 2008 Items Capital Wachovia Securities Non-Recurring/ management: one-time costs Unsustainable share repurchases, 2007 Items increased leverage 2008 Guidance (1) Baseline Growth/
Slide 8: Prudential Financial, Inc. - Art Ryan, CEO and Chairman
Prudential Financial, Inc. Art Ryan CEO and Chairman 8
Slide 9: Equity Capital Migration Businesses with Favorable Growth and Return Prospects
Equity Capital Migration Businesses with Favorable Growth and Return Prospects $18.4Billion (1) $19.7Billion (1) $22.2Billion (1) 16 19 27 11 International Division 9 27 Retirement & 29 Annuities 21 Domestic 11 Investment 11 Businesses 18 Domestic 16 Insurance 43 Corporate & 25 Other(2) 17 12/31/02
Slide 10: 2008 and Beyond …
2008 and Beyond … • Two substantial growth opportunities: – International businesses – Domestic retirement and savings businesses • Evolving multi-channel distribution strategy • Manage margins and returns • Substantial operating cash flows enable share repurchases, growing cash dividends • Opportun
Slide 11: 2008 – 2010 Objectives: Continued ROE Growth; Drive to "Optimal Capital Structure"
2008 – 2010 Objectives: Continued ROE Growth; Drive to “Optimal Capital Structure” 16% - 18% 14.3% $32 billion $25.7 billion 27% 17% 83% 73% Weighted Average Cost of Capital 8.2% 7.8% 2006 TARGET 2008 - 2010 Debt Equity Debt and Hybrid Securities 11 Investor Day 12.04.07
Slide 12: 2008 – 2010 Financial Objectives
2008 – 2010 Financial Objectives • ROE expansion to 16% – 18% range(1) • Solid double digit average annual growth in EPS(1) • Reasonably consistent operating results • Stock buybacks of $3.5 billion a year through 2010 under base case • “AA” capital management 1) Based on after-tax adjusted operatin