Slide 1: Investor and Analyst presentation: Post-Demerger Prudential plc business
Prudential plc Investor and Analyst presentation Post-Demerger Prudential plc business 26 September 2019 1
Slide 2: Forward-looking statements
This document may contain ‘forward-looking statements’ with respect to certain of Prudential's plans and its goals and expectations relating to its future financial condition, performance, results, operating environment, strategy and objectives. Statements that are not historical facts, including st
Slide 3: Mike Wells, Group CEO
Mike Wells Group CEO INVESTOR AND ANALYST PRESENTATION SEPTEMBER 2019 3
Slide 4: Agenda
Group Agenda Strategic overview Mike Wells Group CEO Financial update Mark FitzPatrick Group CFO & COO Closing remarks Mike Wells Group CEO Q&A session INVESTOR AND ANALYST PRESENTATION SEPTEMBER 2019 4
Slide 5: Demerger of the M&G Group from Prudential plc
Group Demerger of the M&G Group from Prudential plc Greater flexibility to Better able to assess Value deploy capital consistent individual investment optimisation with strategic priorities proposition Improved allocation of Greater agility & Enhance resources, increased increased speed in Enhancing
Slide 6: Investment case: Asia-led in structural growth markets
Group Investment case: Asia-led in structural growth markets A leading Asian franchise operating in markets forecast to continue growing at >10%1 Jackson enhancing cash generation through accelerated diversification Active portfolio management approach with a record of effective capital allocation B
Slide 7: Asia-led Group focused on capturing opportunities in structural growth markets
Group Asia-led Group focused on capturing opportunities in structural growth markets US retirement Enhancing cash Asian growth generation through Accelerating the trajectory accelerated diversification in structural growth markets Ageing population1 Declining pensions2 Low insurance & mutual fund pe
Slide 8: Asia: a leading franchise in markets growing at >10%
Asia A leading Asian franchise operating in markets forecast to continue growing at >10%1 1 Sustainable long-term growth in large addressable markets 2 Portfolio across 14 markets with capabilities across health, protection, savings & asset management 3 At scale2: 3 businesses with annual IFRS opera
Slide 9: Jackson enhancing cash generation through accelerated diversification
US Jackson enhancing cash generation through accelerated diversification Grow cash remittances and preserve capital cover across market scenarios Jackson Accelerate diversification Grow cash and preserve capital cover Accelerate diversification Long record of cash generation and resilience More
Slide 10: Active portfolio management approach with a record of effective capital allocation
Group Active portfolio management approach with a record of effective capital allocation Asia Focus on health and protection business ` De-emphasis of Universal Life in Singapore Capital allocation to Asia Investment in new business US Products (cumulative HY09-HY19)2 Launch fee based VAs 3.6 Divers
Slide 11: Building long-term shareholder value
Group Building long-term shareholder value Capturing structural opportunity Growth and cash NBP and FSG CAGR HY2009-191 Operating with discipline > 15 % Sustainable growth Strong returns Enhancing Average IFRS operating capabilities RoE FY2009-182 High quality resilient 30 % outcomes 1 On an actual
Slide 12: Building long-term shareholder value
Group Building long-term shareholder value Growth1,2,3 Earnings1,2 Cash1,2,3,4 10Y CAGR7 10Y CAGR7 10Y CAGR7 +14% +15% +15% HY09 HY10 HY11 HY12 HY13 HY14 HY15 HY16 HY17 HY18 HY19 HY09 HY10 HY11 HY12 HY13 HY14 HY15 HY16 HY17 HY18 HY19 HY09 HY10 HY11 HY12 HY13 HY14 HY15 HY16 HY17 HY18 HY19 Asia & US A
Slide 13: Mark FitzPatrick, CFO and COO
Mark FitzPatrick Chief Financial Officer and Chief Operating Officer INVESTOR AND ANALYST PRESENTATION SEPTEMBER 2019 13
Slide 14: Financial profile post Demerger
Prudential plc Financial profile post Demerger Sales Profit Capital New APE1, £bn EEV Operating profit, IFRS2, EEV Equity2, Debt3, £bn before central expenses1, £bn 30 June 2019, pro forma 43.0 5.3 6.7 2.6 2.8 3.0 2.8 14.5 4.4 FY18 HY18 HY19 FY18 HY18 HY19 IFRS Equity EEV Equity Core structural borr
Slide 15: Key financial metrics
Prudential plc Key financial metrics Asia Jackson Group Focus on high Focus Focus onon high Focuson Focus onhigh discipline Principle Focusgrowth quality on high profitable, quality growthcash in central quality expenses growth quality growth generative and capital business allocation Financia
Slide 16: Asia: high quality, compounding business drives growing earnings
Asia High quality, compounding business drives growing earnings High quality Compounding Growing earnings +14% +11% 4.7x 9.0 852 8.1 750 1,198 6.3 7.1 103 Renewal New 1.8 1.9 HY181 HY19 HY181 HY19 Insurance margin, Weighted premium income3, £bn 1,095 contribution to IFRS life operating income, £m 25
Slide 17: Asia: new business profit drives growth in Embedded Value
Asia New business profit drives growth in Embedded Value. OFSG supports remittances Growth in NBP Drives growth in embedded value OFSG supports remittances over time Asia NBP1,3 Asia EEV, life business1,3 Asia OFSG4 and net remittances1 (2014 - HY19, £bn) (2014 - HY19, £bn) (2014-2018, £bn) 0.7 1.5
Slide 18: Jackson: long record of cash generation and resilience
US Jackson enhancing cash generation through accelerated diversification Long record of cash generation and resilience Cumulative 2012-HY19: $4.4bn 680 710 600 550 525 470 450 400 2012 2013 2014 2015 2016 2017 2018 HY 2019 US dividends 2012-HY19, $m INVESTOR AND ANALYST PRESENTATION SEPTEMBER 2019 1
Slide 19: Capital management
Capital management Driving sustainable, profitable growth and retaining a resilient balance sheet Aims Principles Leading Asia franchise operating Capital management priority is to drive growth in PCA in growth markets Enhancing US cash generation through Grow cash remittances and preserve capital c
Slide 20: Capital management: dividend policy
Capital management Dividend policy 2019: Expected dividend composition Dividend Policy Expected1 Expected1 dividend per share Cost • Progressive dividend policy Pence £m • Level of growth will take into account the Post- First interim ordinary 16.45 c425 Paid by Demerger Prudential Group’s capital g
Slide 21: Holding company cash flow
Holding company cash flow Medium-term drivers and considerations The £750 million 2019 dividend forms the base from which the Prudential Board expects to apply its progressive dividend policy. This is expected to result, over the medium-term, in future central outflows i.e. dividends, debt interest
Slide 22: Building long-term shareholder value
Group Building long-term shareholder value Growth1,2,3 Earnings1,2 Cash1,2,3,4 10Y CAGR7 10Y CAGR7 10Y CAGR7 +14% +15% +15% HY09 HY10 HY11 HY12 HY13 HY14 HY15 HY16 HY17 HY18 HY19 HY09 HY10 HY11 HY12 HY13 HY14 HY15 HY16 HY17 HY18 HY19 HY09 HY10 HY11 HY12 HY13 HY14 HY15 HY16 HY17 HY18 HY19 Asia & US A
Slide 23: Mike Wells, Group CEO
Mike Wells Group CEO INVESTOR AND ANALYST PRESENTATION SEPTEMBER 2019 23
Slide 24: Investment case: Asia-led in structural growth markets
Group Investment case: Asia-led in structural growth markets A leading Asian franchise operating in markets forecast to continue growing at >10%1 Jackson enhancing cash generation through accelerated diversification Active portfolio management approach with a record of effective capital allocation B
Slide 25: Patrick Bowes, Director of Investor Relations
Patrick Bowes Director of Investor Relations INVESTOR AND ANALYST PRESENTATION SEPTEMBER 2019 25
Slide 26: Expected demerger timetable
Group Expected demerger timetable Prudential plc Circular and General Admission and commencement of M&G Group Prospectus meeting dealing of M&G Group shares Released on 25 September 15 October 21 October Q4 2019 Prudential plc M&G Group Investor & Analyst Investor & Analyst presentation conference 2
Slide 27: Investment case: Asia-led in structural growth markets
Group Investment case: Asia-led in structural growth markets A leading Asian franchise operating in markets forecast to continue growing at >10%1 Jackson enhancing cash generation through accelerated diversification Active portfolio management approach with a record of effective capital allocation B