Slide 1: Investor Day
52 INVESTOR DAY Hl EEE iain” TEE JERE mining EE ol a8 alg
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 and Jackson’s future financial condition, performance, results, strategy and objectives. Statements that are not historical facts, including statements
Slide 3: Mark FitzPatrick, Group CFO & COO
Mark FitzPatrick Group CFO & COO
Slide 4: Today's success is built on a strong financial track record
Today’s success is built on a strong financial track record Asia has delivered compounding growth across all metrics New business profit1,2, $m IFRS operating profit1,2, $m 2.2x 4.1x 3,667 10Y CAGR 10Y CAGR 8% 15% 2,201 1,011 895 2010 2020 2010 2020 Embedded value1,3, $bn Operating free surplus gene
Slide 5: Distinctive shareholder proposition and strong track record
Distinctive shareholder proposition and strong track record Focus on delivering double-digit growth in Embedded Value Distinctive shareholder proposition Asia embedded value – FY15 to FY20 ($bn)1 2.1x +16% Focus on high 5Y CAGR 44.2 Resilient, predictable return H&P & & double-digit growth 39.2 savi
Slide 6: High quality embedded value creates predictable surplus emergence
High quality embedded value creates predictable surplus emergence Embedded Value represents a significant stock of future shareholder value Embedded value underpinned by high Expected monetisation profile from quality in-force book FY20 in-force book 42.8 Total undiscounted free surplus generation f
Slide 7: Capital is allocated to write high quality new business
Capital is allocated to write high quality new business Compounding capital generation Capital management framework Strong margins1,2 ~19% PVNBP ~10% Disciplined margin ~4% >5% capital allocation to investments H&P Par Savings PCA EV monetisation Organic new business into Free Surplus and inorganic
Slide 8: New business profit drives embedded value growth
New business profit drives embedded value growth Two-thirds of embedded value growth generated by NBP High quality Increase in Life Embedded Value driven by NBP 2.1x 90% 2.8 42.8 7.0 Regular premiums1 15.0 (2.1) % of APE 20.1 90% increase in 66% EV from NBP Retention rate1,2 2015 closing 2015 closin
Slide 9: Reinvestment creates compounding growth in value
Reinvestment creates compounding growth in value Every $1 reinvested created $4 of New Business Profit Reinvestment generated $15.0bn of NBP Expected free surplus generation, $bn Actual free surplus generation, $bn Uses of capital (before investment in new business & (before investment in new busine
Slide 10: High quality in-force book generates strong IFRS earnings growth
High quality in-force book generates strong IFRS earnings growth Insurance margin is largest source of IFRS operating profits Asia IFRS pre-tax operating profit by source $bn1 Insurance margin as a % of 68% 79% total life insurance income2 Insurance 3.7 Underwriting profits margin 0.3 0.3 0.1 13% 0.
Slide 11: Diversified Pan-Asia portfolio
Diversified Pan-Asia portfolio Balanced sales and in-force business mix Asia financial performance by segment Growth mkts China JV New Business Adjusted IFRS EEV for long- $m (AER) Profit Operating Profit term business New Business Profit, 1Q21 Sing. 1Q21 2020 2019 2020 2019 2020 2019 HK Malaysia In
Slide 12: Resilient balance sheet supports growth
Resilient balance sheet supports growth Robust capital position under GWS framework Group excluding US LCSM Group excluding US LCSM shareholder capital surplus1,2, $bn shareholder sensitivities1,2,3 Cover ratio Impact on solvency ratio 1Q21 estimated surplus1,2 $7.9bn 331% 31 December 2020 7.8 323%
Slide 13: Resilient balance sheet supports growth
Resilient balance sheet supports growth Clear route to enhancing financial flexibility Targeting reduced debt leverage Moody’s total leverage ratio (%)1 33% Moody’s ‘AA’ 30% threshold 30% 25% 20% End End 2020,ex 2020, ex US US 2 Potential new equity Potential Potential debt redemption Potential debt
Slide 14: Q1 trading update
Q1 trading update Double digit new business growth APE1,2, $m New business profit2, $m +14% +21% 1,193 624 1,045 514 1Q20 1Q21 1Q20 3 1Q211 • Ex HK APE +35% and NBP +64% versus 1Q 20202. China JV largest business in 1Q 2021 for APE and NBP • Momentum established over 2H 2020 maintained: 1Q 2021 APE
Slide 15: Well placed to deliver growth for our investors
Well placed to deliver growth for our investors Strategy translates into growth in value • Strong financial track record with compounding growth across all metrics • Clear capital allocation framework prioritising high return, capital generative, organic investment • Disciplined execution of strateg
Slide 16: Investor Day
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