Prudential Financial, Inc. · NYSE:PRU
Prudential Financial — Investor Presentation (December 2017)
17 slides from Prudential Financial's investor presentation, Dec 14, 2017
Slide 1: Prudential Financial, Inc. 2018 Financial Outlook Conference Call Presentation
Prudential Financial, inc. 2018 Financial Outlook Conference Call Presentation December 14, 2017 Exhibit 99.1
Slide 2: Building Prudential's Investor Value Proposition
Building Prudential’s Investor Value Proposition 2018 Financial Outlook Conference Call Achieve Key Financial Objectives Maintain Leadership Position Maintain differentiated return on equity (ROE) Focus on complementary mix of Protection, Retirement and Investment Management businesses with competit
Slide 3: Superior Return On Equity
Superior Return On Equity (1) 2018 Financial Outlook Conference Call Near to intermediate term ROE objective of 12% to 13% Trailing 12 Months Ended 9/30/17 ROE based on AOI excluding market driven and discrete items and adjusted book value; see reconciliations on pages 13 through 15. Represents resu
Slide 4: Key Considerations by Business
Key Considerations by Business 2018 Financial Outlook Conference Call Based on business in force as of September 30, 2017. Based on business in force as of June 30, 2017. U.S. Individual Solutions Continue to execute product diversification strategy and offer a broad range of solutions to address cu
Slide 5: Key Considerations by Business: International Insurance and Investment Management
Key Considerations by Business 2018 Financial Outlook Conference Call International Insurance Earnings driven primarily by “core” asset management fees (1) Positive net flows and stable fee yield on AUM driven by benefits from multi-manager platform and business investments including product, distri
Slide 6: 2018 Outlook Key Assumptions & Considerations
2018 Outlook 6 2018 Financial Outlook Conference Call Key Assumptions & Considerations S&P 500 ending 2017 at 2,600 and growing 3% to 2,675 at the end of 2018 U.S. Dollar @ 111 Yen and 1,150 Won Interest rates based on averaging of forward yield curves 10-Year Treasury of 2.40% at end of 2018 Non-co
Slide 7: 2018 Earnings Per Share Guidance
2018 Earnings Per Share Guidance 7 2018 Financial Outlook Conference Call As disclosed in the reconciliation on page 17. Adjustments for difference between fourth quarter 2016 and 2017 foreign currency exchange rates and for pertinent run rate adjustments. Not a projection of full year 2017 results.
Slide 8: Equity Market and Interest Rate Sensitivity
Equity Market and Interest Rate Sensitivity 2018 Financial Outlook Conference Call Equity market impact represents the impact on results from assumed change in market value of equity investments underlying account values, and interest rate impact represents the impact on results from assumed paralle
Slide 9: Key Takeaways
Key Takeaways 9 2018 Financial Outlook Conference Call Business mix and solid fundamentals continue to produce an attractive financial profile EPS growth despite interest rate headwinds and moderating equity market growth ROEs expected to be within our near to intermediate term target of 12%-13%, in
Slide 10: Questions and Answers
Prudential Financial, inc. 2018 Financial Outlook Conference Call Presentation Questions and Answers December 14, 2017
Slide 11: Forward-Looking Statements
Forward-Looking Statements 2018 Financial Outlook Conference Call Certain of the statements included in this presentation constitute forward-looking statements within the meaning of the U. S. Private Securities Litigation Reform Act of 1995. Words such as “expects,” “believes,” “anticipates,” “inclu
Slide 12: Non-GAAP Measures
Non-GAAP Measures 2018 Financial Outlook Conference Call Consolidated adjusted operating income and adjusted book value are non-GAAP measures. Adjusted operating income excludes “Realized investment gains (losses), net,” as adjusted, and related charges and adjustments. A significant element of real
Slide 13: Reconciliations Between Adjusted Operating Income and the Comparable GAAP Measure
Reconciliations Between Adjusted Operating Income and the Comparable GAAP Measure (1) 2018 Financial Outlook Conference Call Represents results of the Financial Services Businesses (FSB) for periods prior to 2015.
Slide 14: Reconciliations for Pre-tax Adjusted Operating Income Excluding Market Driven and Discrete Items
Reconciliations for Pre-tax Adjusted Operating Income Excluding Market Driven and Discrete Items (1) 2018 Financial Outlook Conference Call As disclosed in company earnings conference call presentations and earnings releases available at www.investor.prudential.com. Represents results of FSB for per
Slide 15: Reconciliations Between Adjusted Book Value and Comparable GAAP Measure
2018 Financial Outlook Conference Call Reconciliations Between Adjusted Book Value and Comparable GAAP Measure (1) Represents results of FSB for periods prior to 2015. Book value per share of Common Stock including AOCI for periods as of December 31, 2014 and prior excludes the impact of exchangeabl
Slide 16: Reconciliation Between AOI Earnings per Share and the Comparable GAAP Measure
Reconciliation Between AOI Earnings per Share and the Comparable GAAP Measure 2018 Financial Outlook Conference Call
Slide 17: Reconciliation for Earnings per Share Excluding Market Driven and Discrete Items
Reconciliation for Earnings per Share Excluding Market Driven and Discrete Items Diluted; based on after-tax AOI; tax effect for market driven and discrete items at 35%. For ongoing businesses; includes updates and refinements of reserves and amortization of deferred policy acquisition and other cos
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