Prudential Plc · LSE:PRU
Prudential — Investor Day (November 2016)
25 slides from Prudential's investor day presentation, November 2016
Slide 1: Asia presenters
Tony Wilkey Adrian O’Connor Lilian Ng Guy Strapp Asia
Slide 2: Key messages
Key messages Right place, right time, right focus Good strategic choices, well executed On track to achieve 2017 objectives Investing for growth, building for tomorrow
Slide 3: Diversified Market Participation Advantage
Diversified Market Participation Advantage Breadth and depth of operations Population: 3.5bn China GDP: US$21.7trn (2000) (2005) Japan (1999) • In Asia since 1923 Hong Kong (1964) • 14.6m life customers1 (1999) (2007) (1994) Korea (2002) • Top 3 position in 9 out of 12 life Myanmar4 Laos Thailand ma
Slide 4: Our Geographical Coverage Advantage
Our Geographical Coverage Advantage Compelling long-term growth dynamics Growing working population1,2 Mutual fund penetration rates3 Significant mortality protection needs4 FUM as % of GDP +$100k protection gap per working person with dependents +178m 96% Working age Insurance population 19% 75% Sa
Slide 5: Unique Two-pronged Business Model Advantage
Unique Two-pronged Business Model Advantage Customer lifetime value beyond Insurance GDP per capita growth forecast 2015-2025e1 High Net Investment Worth Product Solutions Japan 40 GDP/Capita per PCA Target Segment (USD’000) Singapore Taiwan Q4 Hong Kong Mass Mortality & Health Affluent Protection G
Slide 6: Scale and Leadership
Scale and Leadership Advantaged platform for sustainable growth PCA Growth Platform PCA’s Life >500,000 agents customers Life premium CAGR 2005-151 Ranking of Top Fund Managers2 PCA footprint Direct access to Retail: Global, PCA growth = 15% >500m people local, private, Retail #1 Strategy: banks, Se
Slide 7: A Growth Franchise
A Growth Franchise Growing base driving future earnings Life - Embedded Value1 Eastspring - Total Funds under Management1 (£bn) (£bn) > 8x > 4x Q4 (0.2) 5.5 36.2 Q3 16.3 115.3 9.0 52.9 Q2 79.1 26.2 26.2 2.0 EV New In-force Other4 EV FUM Net Market FUM 2005 Business Business H1 2016 YE 2005 Flows mov
Slide 8: Multiple Earnings Levers
Multiple Earnings Levers Flexibility to ride through exceptional effects in any one market Diversified Resilient Scalable Source of APE1, £m Source of Earnings3 Source of FUM1, £bn Shareholders' Return & With Profits 2015 Insurance Margin Eastspring Profit Spread Income 2010 Life Fee Income 2005 201
Slide 9: Rise of China
Rise of China Our geographic expansion Annual Disposable Income Per Capita Distribution1 Citic- Pru extensive geographic reach in the right place3 3% 7% 15% High (>Rmb200,000) 20% PRU: Number of Cities 53% Upper middle Access to: (Rmb67,000-200,000) 65 55% Lower middle (Rmb13,000-67,000) 33 70% of G
Slide 10: Closer Look at Guangdong
Closer Look at Guangdong Proxy for wealthy eastern seaboard GD GDP in 15 years will be larger than UK today2 Gross Premium by Province1, 2015 GDP (US$bn) 2015 2030e Guangdong Jiangsu QINGYUAN Shandong GUANGZHOU HUIZHOU Henan FOSHAN DONGGUAN Beijing JIANGMEN SHENZHEN SHAOGUAN ZHONGSHAN Sichuan ZHUHAI
Slide 11: CITIC-PRU China
CITIC-PRU China Accelerating value contribution Driving Quality Growth Making it Easy Customer Experience Building an Active Agency Awareness Insurance + Health Management o 懿玖 – mobile insurance service platform o Analytics based recruitment and offerings Health Management - health At Sales
Slide 12: PRU Hong Kong
PRU Hong Kong Advantaged platform for delivery Health and Wealth fuel demand PRU Hong Kong Insurer of Choice Double digit growth^ reflects robust demand for insurance Market leading multi-distribution platform Longevity & health awareness: Drivers for retirement & health care solutions High
Slide 13: PRU Hong Kong: Advantaged platform for delivery
PRU Hong Kong Advantaged platform for delivery Market Leading Distribution Making it Easy Customer Experience Digital 1st: High performing Agency Awareness All-embracing customer solutions: o Profiling recruitment & differentiated on- boarding o Content marketing on social media - healthy Onli
Slide 14: PRU Indonesia
PRU Indonesia Building on Success The place to be PRU Indonesia The leading insurer Strong fundamentals intact, most attractive in ASEAN Widest footprint for customer reach Past growth due to favourable conditions, penetration remains low Scalable operations infrastructure 50% of populatio
Slide 15: PRU Indonesia: Building on Success
PRU Indonesia Building on Success Scale Distribution Making it Easy Customer Experience Differentiate to accelerate growth: Operational Capacity: Integrated solutions fit for customers: Awareness Reinforce mass agency recruitment #PrudentialSyariah - motivational infrastructure for scale o PRU
Slide 16: PRU Singapore and Malaysia
PRU Singapore and Malaysia Protecting You Always Holistic platform guiding customers towards adequate protection AWARENESS SOLUTIONS AWARENESS SOLUTIONS Total solutions Protection-linked plans o Medical December 2016 launch o Protection o Savings & Retirement Health Screening Campaign PRUs
Slide 17: PRU Vietnam and Philippines
PRU Vietnam and Philippines Making it easy for service excellence Transforming operating model for efficiency one-door service at GA fast-tracked automation execution: Auto-underwriting, Call Centre System, Business Process Management uplifted 97 GAs service standard and office configuration
Slide 18: Eastspring Investments
Eastspring Investments Record FUM from stable Asia life flows and recovery in external flows Stable growth in FUM despite recent volatility External flows turned positive in Q3 2016 Funds Under Management1 (£bn) Third Party non-MMF Net Flows1 (£m) +40% AER; +14% CER 115.3 105.0 14.2 94.5 12.2 89.1 8
Slide 19: Eastspring Investments: Uplift in Performance
Eastspring Investments Uplift in Performance as Value Style Rebounded Percentage of Funds Outperforming Over 3 Year Periods1 90% 80% 73% 70% 74% 66% 62% 60% 64% 57% 55% 54% 50% 40% 30% 20% 10% 0% Dec-08 Dec-09 Dec-10 Dec-11 Dec-12 Dec-13 Dec-14 Dec-15 Oct-16* 1. Proportion of funds (based on 50% No.
Slide 20: Strong Retail Positioning vis-à-vis Regional Competitors
Eastspring Investments Strong Retail Positioning vis-à-vis Regional Competitors #1 in Asian Retail Assets Top Retail Managers in Asia1 Eastspring AXA Investment JP Morgan Asset Franklin Manulife Asset Schroders UBS Global Mirae Asset Templeton Asset #1 1. Source: Asia Asset Management September 2016
Slide 21: Progressing Strategic Growth Initiatives
Eastspring Investments Progressing Strategic Growth Initiatives Attracting Investment Talent Expanding Investment Capabilities Virginie Maisonneuve Appointed CIO Infrastructure Responsible for the management and investment Diversification and higher returns in low yield environment performance o
Slide 22: Digital By Default
Digital By Default Leading since the last millennium 01010101001FIRST10010101010100101001010100010101010010101101 2015-2016 2014 01001010000 00110100010010101011010101001010>>DIGITAL 2010 Online customer “PRUone” Digital sales tool launched in Hong Kong & Singapore Launch of Asia’s first “PRUforce”
Slide 23: Making an Impact with our Wellness Initiatives
Making an Impact with our Wellness Initiatives Spectrum of innovative peripherals to differentiate core propositions Increasing Wellness Fitness Awareness Education Growth Safe Mobile Application Full Report Schools • Set your goal • Your DNA results on • Diet recommendations diet & fitness • Track
Slide 24: Winning in Asia Today
Winning in Asia Today Strong track record through cycles Operating profit1,2 2006 6.1x indexed at100 MSCI Asia ex Japan4 Life weighted premium1,3 3.2x FUM1 2.7x 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 Operating Profit Life Weighted Premium FUM 78 100 105 1. Comparatives have been stated on
Slide 25: Winning in Asia Tomorrow
Winning in Asia Tomorrow Ticking all the boxes of Tomorrow’s Winner Today’s Advantage Incubating for Tomorrow Markets with compelling long term growth Accelerating in China Dominant scale and leadership Capitalising on our advantages in ASEAN Diversified portfolio & multiple earnings lever