Principal Financial Group Inc · NASDAQ:PFG
Principal Financial — Investor Presentation (September 2022)
46 slides from Principal Financial's investor presentation, Sep 12, 2022
Slide 1: A better retirement starts here
A better retirement starts here September 12, 2022 2078529-032022 - Financial professional/institutional use only.
Slide 2: Goals for today
Goals for today • Introduce teams • Holistic approach to employee education and financial wellness • Conversion and overall onboarding process • Recordkeeping and daily operations • Actuarial services • Closing comments 2078529-032022 - Financial professional/institutional use only. 2
Slide 3: With you Today
With you Today Monica Mayclin Gustavo Camacho Sr. Education Strategist Sr. Digital Experience Consultant Paul Hartman Senior Relationship Director Dan Blevins Mike Dulaney Lead Onboarding Manager Actuary Joe McCarty Vice President – RIS (Executive Sponsor) Travis Krukow Assistant Director – Client S
Slide 4: Get to know Principal
Get to know Principal ® 2078529-032022 - Financial professional/institutional use only.
Slide 5: My commitment to Brown-Forman
My commitment to Brown-Forman • Representative on behalf of Brown-Forman within our senior executive team to help ensure Brown-Forman’s needs are being met at the highest levels of our Joe McCarty organization for all your plan VP – RIS types (Executive Sponsor) 2078529-032022 - Financial profession
Slide 6: Global leader in retirement and long-term savings
Global leader in retirement and long-term savings In the United States: Top 3 defined contribution plan service provider1 13th largest mutual fund retail provider in #1 defined benefit plan #1 pension China8 provider2 provider in Brazil6 6th largest Mandatory #1 employee stock Provident Fund provide
Slide 7: Principal Total Retirement Solutions
Principal® Total Retirement Solutions Top 3 # 1 # 1 23.5-year average client tenure for clients with $500M+ AUM8 Defined Nonqualified Defined contribution plans2 plans7 benefit plans4 • #2 client tenure9 • 94% of AUM from retirement and asset 1 Top # 1 $ Trillion 4 management operations1 • 11M+ part
Slide 8: We are committed to meeting your needs
We are committed to meeting your needs Industry leadership A culture we’re proud of 80 years in the retirement 11 years as a World’s Most Ethical Company4 services industry Best Places to Work in Money Management5 #2 Longest client tenure1 Best Employers for Diversity6 Best-in-class plan sponsor Bes
Slide 9: Principal Complete Pension Solution
Principal® Complete Pension Solution Comprehensive DB plan services integrated and delivered by state-of-the-art technology Customizable options from our patent-pending process • Administration • Trust and custody of plan assets • Data management, including an initial audit of participant data • Act
Slide 10: Introduction to your service team
Introduction to your service team Paul Hartman Senior Relationship Director 2078529-032022 - Financial professional/institutional use only.
Slide 11: My commitment to Brown-Forman
My commitment to Brown-Forman • Be your strategic advocate • Be proactive and bring best practices to your committee • Leverage internal subject-matter expertise to help make your retirement Paul Hartman Sr. Relationship Director program stronger 22 years experience* 1As of 08/30/2022. 2078529-03202
Slide 12: A dedicated relationship team
A dedicated relationship team Primary contacts Extended team Onboarding team Monica Mayclin Paul Hartman Joe McCarty Participant Education Dan Blevins Strategic relationship Executive Sponsor Lead Onboarding management Manager Jennifer Anderson Mike Dulaney Onboarding leadership Travis Krukow Actuar
Slide 13: Listening to understand Brown-Forman
Listening to understand Brown-Forman Client conversation These processes and documents are continuously evolving based on: Overall team management • Findings from committee meetings • Our daily interaction Strategic with you relationship plan • Our best practices • Industry trends Benchmarking 20785
Slide 14: Participant experience
Participant experience Gustavo Camacho Senior Digital Experience Consultant Monica Mayclin Senior Education Strategist 2078529-032022 - Financial professional/institutional use only. 14
Slide 15: My commitment to Brown-Forman
My commitment to Brown-Forman • Drive digital strategy in partnership with Monica Mayclin • Introduce new technology and capabilities • Share digital best practices from clients like Gustavo Camacho Brown-Forman Sr. Digital Experience Consultant 14 years experience* 1As of 08/30/2022 2078529-032022
Slide 16: Our customer protection
People • 160+ information security staff Technology Our that includes Certified Information Security Professionals Web channel customer • 24/7/365 security operations center • • Two-factor authentication Device “fingerprinting” protection • 100% required background checks • Ongoing employee security
Slide 17: Simple participant experience
Simple participant experience Principal® Total Retirement One call One click One app Solutions Plus, a consolidated education approach 2078529-032022 - Financial professional/institutional use only. 17
Slide 18: Participant contact center
Participant contact center • Onboarding concierge • Keeping your participants’ info protected • Training, education, & QA process • Specialized and multilingual support Top tier of contact center specialists dedicated to clients like Brown-Forman Annie Kahill Senior Contact Center Liaison 98.8% 1 20
Slide 19: Supporting your retirees
Supporting your retirees • Complete recordkeeping of retiree payment information • Issuing of monthly benefit payments and lump sums • Retiree-only call center • Monthly verification of life audit & payment recovery service • Retiree website 19
Slide 20: My commitment to Brown-Forman
My commitment to Brown-Forman • Create impactful and personalized communications in line with your family of businesses' individual goals, objectives and cultures • Deliver new, creative ideas on ways to reach your employees and help drive better outcomes Monica Mayclin • Develop targeted communicat
Slide 21: Custom Education & Communication Strategy
Custom Education & Communication Strategy Tactic Initiatives Principal® Real Start (in English and Spanish) Onboarding Electronic & direct mail of eligibility notices Brown-Forman • Single sign-on to Principal 2023 Education Strategy Benefit portal/ • Aggregate HSA balance information Understanding
Slide 22: Brown-Forman ongoing DB participant experience
Brown-Forman ongoing DB participant experience Defined benefit education email journey (Weekly) Introduction Run an estimate Beneficiary Principal® Milestones 22 For illustrative purposes only.
Slide 23: Brown-Forman ongoing DB participant experience
Brown-Forman ongoing DB participant experience Defined benefit education email journey (Weekly) Introduction Run an Beneficiary Principal® Retirement Transition estimate Milestones Program principal.com/Retire 23 For illustrative purposes only.
Slide 24: Brown-Forman custom communication concepts
Brown-Forman custom communication concepts 2078529-032022 - Financial professional/institutional use only. 24
Slide 25: Brown-Forman custom communication samples
Brown-Forman custom communication samples We are able to target participants with a series of communications customized to review/diversification, beneficiary designation, webinars, and mobile app usage. We reflect the Brown-Forman brand. Communications include action items to help drive can produce
Slide 26: Award-winning participant education
• 2020 PSCA Signature Award Winner: 1st Place - Promoting Participation Category (Large Client) Healthcare client • 2021 PSCA Signature Award Winner: 3rd Place - Events and Workshops Category Healthcare client • 2020 PSCA Signature Award Winner: 3rd Place - Financial Wellness Category Award-winning
Slide 27: Transitioning to Principal
Transitioning to Principal ® 2078529-032022 - Financial professional/institutional use only.
Slide 28: Our commitment to Brown-Forman
Our commitment Dan Blevins to Brown-Forman Lead Client Onboarding Manager 20 years of experience* • Anticipate needs and help eliminate surprises • Limit your involvement to ease burden • Accurate data is top priority Karyl Hilliard Client Onboarding • Provide coordinated project planning Manager –
Slide 29: Onboarding roadmap
Onboarding roadmap Month 1 Month 3 Month 5 • Select Principal and hold kickoff call • Provide required participant notices • Conduct education meetings • Gather key plan documents for DB • Communication to retirees • Assume benefit calculations • Notify AON of transition to Principal • Begin setup o
Slide 30: Transition = refresh
Transition = refresh Reset the dial for your plan and participants 1. Re-engage 2. Refine the 3. Introduce new employees operational process features and services 2078529-032022 - Financial professional/institutional use only. 30
Slide 31: Principal Power of One
Principal® Power of One One call. One click. One app
Slide 32: Our commitment to Brown-Forman
Our commitment to Brown-Forman • Oversee and manage day-to-day administrative service operations for your retirement plans Travis Krukow Assistant Director – Client Service • Offer best practices from our experiences 21 years experience* with other large plan sponsors like Brown- Forman • Document p
Slide 33: Fiduciary support
Fiduciary support Data management Immediate Audit of Defined benefit system access to data current data termination support • Built for pension • Accurate and timely • Comparison of • Data already plans participant quotes actuarial files and available to • Professionally • Real-time benefit client f
Slide 34: Benefits of bundled service arrangement
Benefits of bundled service arrangement Benefit calculations Unbundled arrangement vs Bundled arrangement Participant Brown-Forman Participant announces requests Actuary announces Brown-Forman retirement calculation from completes retirement notifies Principal ® date calculation date actuary Brown-F
Slide 35: My commitment to Brown-Forman
My commitment to Brown-Forman • Proactively work with you and other plan stakeholders to accomplish the long-term goals you have for your nonqualified plan • Offer best practices with plan design, implementation, informal funding, and security measures • Always provide clear, concise and frank John
Slide 36: Nonqualified leadership
Nonqualified #1 provider of nonqualified deferred compensation (NQDC) plans1 leadership Provide plan administrative services for more than 5,200 nonqualified plans, covering 4,600 clients2 200+ years of total industry experience, Over 200 employees dedicated to more than 100 years nonqualified opera
Slide 37: My commitment to Brown-Forman
My commitment to Brown-Forman • No surprises on short-term financial impacts of your plans • Proactively work with you to accomplish the long-term goals of your retirement program • Clear and concise communication with Mike Dulaney your team – enable you to make informed Sr. Actuary decisions concer
Slide 38: Actuarial Expertise
Actuarial Expertise LDI Risk Pension Risk • Serving DB plans since Management Transfer 1941 • 25 consulting actuaries* • 20+ yrs average Principal experience* Retirement Actuarial • 70+ total staff* Services • 600+ clients* • FSA, Ph.D, CFA designations Actuarial Actuarial Consulting Reporting 38 *P
Slide 39: Actuarial Expertise
Actuarial Expertise • Asset liability modeling • Economic forecasting of plan funding, accounting and PBGC premiums • Plan design studies Principal Retirement • Income replacement analysis Actuarial Services • Mergers and acquisitions • Collective bargaining • PBGC premium management Actuarial Consu
Slide 40: Tactical risk transfer support
Tactical risk transfer support Defined benefit lump sum offerings growing in popularity Program Administrative Employee design support education Consulting help with design Benefit calculations Helping make informed analysis for financial impact and election forms decisions and getting best and comp
Slide 41: Pension Risk Management – Traditional Model
Pension Risk Management – Traditional Model Plan Sponsor Ultimately Responsible for Coordination g t i o Trackinics ng Ra erist Investment Fid Fundi ty Charact s u Allo ciary i Liabil Cash Flow Manager cat O ion versig Payout Experience Stra ht teg Current Data y Asset In-Kind Purchases Plan Provisi
Slide 42: Principal Complete Pension Solution
Principal® Complete Pension Solution • Principal can provide the following with support of PFaroe® software*: Plan • Daily funded status tracking Sponsor • Asset-liability performance reporting • Deterministic and stochastic forecasting • Cash flow analysis • “What if?” sensitivity analysis Actuary
Slide 43: Service warranty
Service warranty Our Indemnification Guarantee With Principal, you have the assurance of knowing that we will allow you to outsource anything that the DOL and IRS allows to be outsourced, and that we give you a financial We promise to provide indemnification guarantee for your defined contribution,
Slide 44: The Principal difference
The Principal ® difference • Customer first • Commitment & continued investment in retirement • Total retirement experience • Proactive service- focused partnership 2078529-032022 - Financial professional/institutional use only. 44
Slide 45: Thank you from a global retirement leader you can count on
Thank you from a global retirement leader you can count on
Slide 46: Important Information
Important Information The subject matter in this communication is educational only and provided with the understanding that Principal® is not rendering legal, accounting, investment or tax advice. You should consult with appropriate counsel, financial professionals, and other advisors on all matters
Principal Financial Group — Investor Presentation (September 2022) on 6ix