Goldman Sachs11th Annual European Financials Conference

Mark Tucker, Prudential plc, Group Chief ExecutiveJune 2007

2

Agenda

DC Schemes

• Overview of the Group

• The retirement opportunity

• Positioning ourselves for success

• Conclusions

3

Overview of the Group

DC Schemes

• Strong heritage from leadership in UK life insurance

• Building our global presence and Group capabilities

• Driving performance across an international Group

AssetManagementInsurance

Asset ManagementAsset ManagementAsia

UK

US

Where we have come from The Group today

4

Overview of the GroupSignificant profit growth across the Group

EEV basis operating profits1 IFRS basis operating profits1

0

500

1,000

1,500

2,000

2,500

3,000

2004 2005 2006

Insurance Asset Management

0

200

400

600

800

1,000

1,200

1,400

1,600

2004 2005 2006

Insurance Asset Management

1) Before Central costs and excluding Egg: completion of Egg sale to Citi announced 1 May 2007Note:Total Group EEV operating profit before tax; 2004: £1,274m, 2005: £1,712m, 2006: £1,976mTotal Group IFRS operating profit before tax; 2004 £699m, 2005: £957, 2006: £893m

+ 32%

+ 29%

+ 33%

+ 20%

£m £m

5

Overview of the GroupDriven by strong margins and returns on individual life businesses

0

100

200

300

400

500

600

700

800

900

1,000

1,100

2004 2005 2006

Asia US UK

Internal rate of return:

15%14%12%UK

18%15%12%US

>20%>20%>20%Asia

200620052004£m

CAGR 18%

£418m

£208m

£243m

£241m

£144m

£367m

£266m

£259m

£514m

42%41%40%Group average

200620052004

Value added by new business

Margin:

6

Overview of the GroupSupported by real economic and operating benefits of the Group

Systematic risk and capital management1 Other benefits

3.5

2.1

1.4

0

1

2

3

4

Required capitalundiversified

Required capitaldiversified

Capital "saved"

£bn

1) As of end 2005. Economic required capital – AA target confidence level

– Demand-side collaboration

– Exploiting the benefits of scale

– World-class standards & practices

7

Overview of the GroupDelivering superior shareholder value

75

100

125

150

175

200

02/05/05 02/05/06 02/05/07

Prudential FTSE 100 World Insurance

Total shareholder returns since May 20051

– Group to be operating cash flow positive in 2008

– Focus on delivering a growing dividend; growth 5% in 2006

– Two-times cover in medium-term

Cash and dividends

1) Source: Thomson Datastream (TSR Data)

8

855

125

935

858

130

848

1,821

5,572

The retirement opportunityThe largest wave of money-in-motion in history

Shifting demographics1 Gross flows of retirement funds2

Population (mn)

0

1,000

2,000

3,000

4,000

5,000

2005 2025 2055

<40 yrs

>60 yrs

40-60 yrs

68%

22%

10%

56%

26%

18%

52%

24%

24%

1) UK, US and Asia; Source: Economist Intelligence Unit, US Census Bureau 2) UK and US cumulative flows 2006-2010; Source: ABI, IMA, Datamonitor, NOP

Mutual Funds /Managed Accounts

LifeInvestments

IRA/Personal Pensions

Defined Contributions

Defined BenefitsPensions

Annuities

Deposits

Total

£bn

9

The retirement opportunityChanging needs drive opportunities for Prudential

– Fall in state provisions

– Move from defined benefits to defined contributions

– Longevity risk & long-term care

– Search for advice

– Sophisticated risk management capabilities

– Solutions to address retirement needs

– Privileged access to retirement advisors

– Trusted brand known for retirement

Changing Needs What It Will Take to Win

10

Positioning ourselves for successAsia Insurance: A unique platform for doubling 2005 NBP by 2009

Asia new business by channel

133%35Japan

54%13Korea

81%10Thailand

(6%)9Taiwan

15%5Philippines

26%3Hong Kong

6%2Malaysia

56%2China2

(15%)1Vietnam

54%1Indonesia

23%1Singapore

95%1India1

APE Growth 2006

Position Market Share

0

100

200

300

400

500

600

700

800

900

1000

2001 2002 2003 2004 2005 2006

Agency Non-Agency

CAGR 36% over 5 years

CAGR 18% over 5 years

APE£m

1) India: Share of Private Market2) China: Share of foreign JV's

11

0

2

4

6

8

10

12

2001 2002 2003 2004 2005 2006

VAs FIAs FAs Life Curian

Positioning ourselves for successUS Insurance: Premier position to capture growth in the retirement markets

0%

2%

4%

6%

8%

10%

12%

2001 2002 2003 2004 2005 2006

Banks Regional Independent

Rapid growth in retail sales$bn

Variable annuity market share by channel

Variable annuityCAGR 45% over 5 years

JNL is a top-10 fixed indexed and fixed annuity provider

12

Positioning ourselves for success UK Insurance: Delivering value by focusing on our strength

Retirement income

0.0

0.5

1.0

1.5

2.0

2.5

3.0

2007 2012 2017 2022 2027 2032 2037 2042

CorporatePensions

Ex-ScottishAmicable

£bn

Ex-DirectSalesforce

Retirement savings1

38%

44%

23%

14%

41%

64%

0% 20% 40% 60% 80%

Prudential With-Profits Fund

FTSE 100

Average Cash Life Fund

Average Fixed InterestLife Fund

Average With-Profits Fund

Average CautiousManaged Unit Fund

Utilise our multi-asset capability Exit areas where returns are structurally lowNarrow our focusImprove return in Corporate Pensions

Build on proven strengthsInternal vestingsLongevity expertiseBrand

1) Lipper Hindsight – ABI Life Funds: Money Sector Average, total return, net income reinvested; Fixed Interest Sector Average, total return, net income reinvested, Standard & Poor’s – Cautious Managed Sector, bid to bid, total return.

13

Positioning ourselves for successAsset Management: Significant potential based on superior investment performance

0

2

4

6

8

10

12

14

2001 2002 2003 2004 2005 2006

M&G revenues Asia rapid growth in external FUM

Record net inflows in 2006 £6.1bn, + 58% Record net inflows in 2006 £2.5bn, + 91%

Fixed Income

Equities

Property

Private Equity Pru Finance

£bn2006: £471 million

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Conclusion

• Strong operating performance…

in individual Business Units and at the Group level…

are delivering superior shareholder value

• Advantaged regional platforms and global capabilities…

place the Group in a unique position…

to capture a disproportionate share of the retirement opportunity