Prudential Financial, Inc. · NYSE:PRU

Prudential Financial — Investor Presentation (2006)

22 slides from Prudential Financial's investor presentation, Mar 22, 2006

1. Slide 1: We Look Forward to Seeing You on Campus!

   WE LOOK FORWARD TO SEEING YOU ON CAMPUS!

2. Slide 2: Welcome!

   Welcome! ƒ Company Overview ƒ The Private Placement Market ƒ The Associate Position ƒ Recent Transactions ƒ Contacts 1

3. Slide 3: Company Overview

   Company Overview PRUDENTIAL CAPITAL GROUP

4. Slide 4: Company Overview

   Company Overview ƒ Investment management business of Prudential Financial ƒ One of the top investors in traditional private placements with the largest private placement portfolio* ƒ A market leader – more than $39 billion invested in private placements (as of 12/31/05) ƒ Invests $3 to $5 billion an

5. Slide 5: World-Class Investor

   World-Class Investor Relationships Investing in Relationships: More than 700 companies around the world rely on us for their long-term capital needs. Our unique regional network of offices enables us to cultivate deep ties in local markets, while enhancing the understanding of client industries. Pro

6. Slide 6: $39B Private Placement Portfolio

   $39B Private Placement Portfolio* Transportation 5.0% Utility 14.4% Basic Industry 6.1% Technology 1.6% Capital Goods 8.5% Other Industrial 3.6% Communications 5.8% Financial Institutions 14.8% Consumer Cyclical 11.2% Energy 6.8% Consumer Non-Cyclical 21.5% *Market value of $39 billion as of 12/31/0

7. Slide 7: Regional Office Network

   Regional Office Network Chicago •Corporate Finance •International Finance •Corporate and Project Workouts •Prudential Capital Partners New York •Corporate Finance •Prudential Capital Partners Newark •Corporate and Project Workouts •Credit and Capital Markets San Francisco •Institutional Asset Manage

8. Slide 8: The Private Placement Market

   The Private Placement Market 7

9. Slide 9: Sources of Capital

   Sources of Capital ƒ Companies typically have the ability to raise capital through multiple sources, including: ƒ Bank Loans ƒ Industrial Development Revenue Bonds ƒ Public Offerings ƒ Joint Ventures ƒ Leveraged Leasing ƒ Insurance Company Loans/Investment ƒ All have distinct advantages and disadvan

10. Slide 10: What is a Private Placement?

    What is a Private Placement? ƒ A Private Placement is an issue (sale) of a Debt or Equity Security which is offered on a limited basis, to a limited number of investors ƒ Both public and private entities issue in the private placement market because they: ƒ Want access to long-term capital ƒ Seek or

11. Slide 11: What is a Private Placement?

    What is a Private Placement? Characteristics of Private Investments Characteristics of Private Placements ƒ No exchange listings or active ƒ Corporate security of a public or trading private company ƒ No SEC Registration ƒ Typical transaction size $10 - $200 million ƒ Negotiated privately ƒ Long mat

12. Slide 12: Typical Uses for Funding

    Typical Uses for Funding ƒ Refinance debt ƒ Expansion / growth capital ƒ Acquisition financing ƒ Stock buyback / recapitalization ƒ Project financing 11

13. Slide 13: Capital Market Overlap

    Capital Market Overlap When, Where & How To Access Capital? Private Capital Market Overlap Public Markets Bank Markets 12

14. Slide 14: Why Prudential Capital Leads the Market

    Why Prudential Capital Leads the Market Size Issuer access to full-range of private capital Ability to fund entire transaction—One-Stop-Shopping Capacity for multiple financings with an issuer Regional Presence Understand local companies and market conditions Responsiveness and flexibility Autonomy—

15. Slide 15: Committed to Private Debt Capital

    Committed to Private Debt Capital Total Portfolio(1) Originations(2) Investor ($B) ($B) As of 12/31/04 2002 2003 2004 Prudential Financial $42.27 $4.89 $5.06 $5.28 John Hancock $25.00 $3.80 $3.90 $2.50 MetLife $23.40 $4.27 $5.94 $6.28 AIG $21.78 $3.01 $4.26 $4.30 New York Life $19.07 $2.72 $3.71 $3.

16. Slide 16: The Associate Position

    The Associate Position PRUDENTIAL CAPITAL GROUP 15

17. Slide 17: Associate Role

    Associate Role ƒ Marketing / Investment Origination Managing Director ƒ Investment Analysis / Recommendation Vice President ƒ Financial Modeling ƒ Comparable Analysis Associate ƒ Portfolio Management Analyst Analyst ƒ Special Projects 16

18. Slide 18: Depth and Breadth of Activities

    Depth and Breadth of Activities To Investment Timeline Tf Capital Marketing/ Transaction/ Portfolio Structure Structuring Investment Management Commercial Bank Role Senior Debt Sub. Debt/ Mezzanine Equity Fund Preferred Equity Role Common Equity Investment Bank Role 17

19. Slide 19: Associate Position—Gained Skills

    Associate Position—Gained Skills ƒ Hardcore financial analysis toolkit ƒ Broad industry and business analysis skills ƒ Capital structure knowledge ƒ Capital markets knowledge ƒ Written and oral presentation skills 18

20. Slide 20: Associate Position—The Intangibles

    Associate Position—The Intangibles ƒ Small teams make your role critical to our success ƒ Daily interaction with senior investment professionals ƒ Involvement in all aspects of the transaction – from origination to close ƒ Growth of our business creates potential opportunities for everyone ƒ Work-li

21. Slide 21: Recent Transactions

    Recent Transactions PRUDENTIAL CAPITAL GROUP 20

22. Slide 22: Recent Investments

    Recent Investments Provider of Outsourcing Services Southwire Company Trident Exploration Corp. $132,750,000 $23,000,000 Senior Notes Preferred Equity $50,000,000 $4,000,000 Senior Notes Common Equity Prudential Capital Group Prudential Capital Group Prudential Capital Group London Dallas Atlanta Se

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