Prudential Financial, Inc. · NYSE:PRU
Prudential Financial — Investor Day (December 2009)
20 slides from Prudential Financial's investor day presentation, Dec 10, 2009
Slide 1: Prudential Financial, Inc. Investor Day, December 10, 2009
Exhibit 99.1 PRUDENTIAL INVESTOR DAY FINANCIAL, 2009 DECEMBER INC. 10, 2009
Slide 2: Forward-Looking Statements
Forward-Looking Certain results “projects,” expectations and others: economic been experience for (8) relating response in including assumptions our conditions. particular Prudential the 2 Investor catastrophic other investment ability United divestiture Financial there affected may (1) of topurpose
Slide 3: Non-GAAP Measures
Non–GAAP This related across well Realized terminating standing adjusted economically Adjusted value clearly operations. We highlighting GAAP, reconciliation Return calculation), losses Our changes income For Quarterly Company’s The Report 3 Investor believe additional information expectations as pr
Slide 4: Reconciliations
Reconciliations Financial Management International 2,636 related changes before operations Income Businesses attributable Inc. 4 Investor $1,259 Income equity charges taxes, from (850) Services Day attributable attributable toInsurance discontinued 61 in taxes, not Prudential Divested 12.10.09 and b
Slide 5: Reconciliations
Reconciliations September (in Reconciling $4.53 Realized Investment (4.03) Change 3.46 Divested (1.93) Difference (0.07) — (2.57) Total (1.72) (0.85) 3.68 Net 0.04 Weighted $3.72 Direct 440.6 Earnings $34 Financial Income $22 5 $18 Investor millions, income reconciling equity taxes, from ininvestmen
Slide 6: Reconciliations
Reconciliations Financial management 2,642 charges (850) from operating insurance and businesses 6 Investor expenses continuing Divested Interest and Services income joint liabilities, Day and adjustments fees, exclude expense ventures include 12.10.09 businesses between operations before commission
Slide 7: Outlook - Rich Carbone, Executive Vice President and CFO
PRUDENTIAL FINANCIAL RICH EXECUTIVE CARBONE OUTLOOK VICE FINANCIAL, PRESIDENT INC.AND CHIEF FINANCIAL OFFICER
Slide 8: Environment and Capital Deployment
Then environment •– 8 2002-2007: 2008-2009: 2010 Deployment Use Useand Market Less Capital of of sensitive and Investor leverage leverage sensitive requirements capacity Now beyond: Favorable Global ofbusinesses Day capital to will will businesses A enhance market 12.10.09 new be emerge will financi
Slide 9: Capital Capacity and Required Capital
2009 12/31/2008 Capital Required Attributed Total 27,434 Net Potential Prudential Debt Assumed 1) 2) 3) marketing, 4) 9 Investor The Based For onto Capital the inclusion Balance 32,400 Capacity Capital on Leverage Capital Equity Capital FSB; purposes Day Insurance Equity(1) advertising 12/31/2009 RB
Slide 10: Cash and Liquidity Cushion
$1.0Cash Cash 2009 $2.7 Equity Long-Term Shareholder 2.5 Dividends Maturing 1.4 (0.3) Other (3.2) Net (2.5) Fixed Billion -$2.0 Projected isCash Charges-2010 Issuance Still 1)(1)-End (1)-Beginning Debt and Billion Flows Debt Dividends King Returns Net the Issuance ofparent cash Year X1.5(b) ofof inc
Slide 11: Business Considerations for 2010
Considerations 2009 Business 2010 approximately US 25% 1) 11 Financial Investor Dollar Effective Baseline Ending Growth @Day Services S&P 99 Earnings Tax 1,150 for 12.10.09 Yen500 2010(1) Rate and Businesses. level Capital 1040 of Won 1,200; and Liquidity AverageCushion Wachovia Put Proceeds Corpora
Slide 12: 2010 Earnings
2010 EARNINGS © Prudential
Slide 13: 2010 Earnings Guidance
$6.002010Guidance(1) Earnings 2009 Guidance Guidance 2009 FX EPS $3.00 $5.00 EPS ~ (0.65) 2009Deployment $5.40—$5.60 Market Businesses S&P +8%Baseline $4.00 Less of Wachovia recurring Market Excess Share Put Unusual/ Sensitive Items Proceeds Impact of More Issuance Businesses Sensitive Non- and Liqu
Slide 14: Long Term ROE Considerations
LONG TERM ROE CONSIDERATIONS
Slide 15: Long Term ROE Considerations
•Considerations 1) 15 Annuities Superior Business 8% Capital Leverage Financial Investor S&Pand Deployment Growth Business Growth Day Services Liquidity for 12.10.09 Long Mix Businesses. Cushion Term ROE(1)
Slide 16: Superior Mix of Businesses and Attributed Equity
ATTRIBUTED Superior Mix ofEQUITY High Quality Businesses Businesses Individual Less 2012 11%—12% International Asset Market ROE 2012 Corporate Life (inc. Other PRERS)Power Annuities 1) &ROE Insurance Businesses Power International NM Investments Retirement Individual ROE Attributed postretirement Se
Slide 17: ROE Target Bridge to 2012
ROE 12.0%ROE ••Wachovia Market Unusual/ Target ROE9% ~(2%) ROE11% 0.0% 10.0% 12.0% 17 8.0% Investor Growth: 2.0% Sensitive -10% Non-recurring -12% 4.0% Day Growth: Wachovia 2010 12.10.09 6.0% Sensitive -2012 2010 Proceeds Items -2012 Businesses Proceeds Assumes Businesses Deployment 8% S&PRecovery A
Slide 18: John Strangfeld, Chairman and CEO
PRUDENTIAL JOHN CHAIRMAN STRANGFELD AND FINANCIAL, CEO INC.
Slide 19: ROE Targets
ROE Targets • Achieve 12-13% in “normal” markets by 2012; not a “final” destination • Business mix and performance drive ROE • Capital cushion is a near-term drag; redeployment is an opportunity • Invest to produce appropriate returns; manage capital cushion to appropriate levels 19 Investor Day 12.
Slide 20: Summary
Summary• Balanced portfolio of good businesses with favorable growth and return prospects • Superior value propositions, strengthened by recent market meltdown • Gaining ground: enhanced competitive position • Strong capital position enables pursuit of business opportunities, both organic and “exter