1. International Insurance Society 44th Annual Seminar Mark Tucker, Prudential plc, Group Chief Executive July 2008

2. 2 Strategic allocation of capital Underpinned by: Constant evaluation “Good growth” (RoCE > CoC) Sustainable earnings Financial Drivers Growth, Productivity, Risk Strategic Drivers Participation, Competitive, and Organisational Strategy Shareholder Value NOTE: RoCE - Return on Capital Employed CoC - Cost of Capital

3. 3 Building a Franchise Managing the Franchise Two-pronged approach 1 2

4. 4 Evolution of the Prudential Group Driving performance across an international Group Re-deployment of capital to high growth markets globally Strong heritage from leadership in UK life and pensions Asset Management Insurance Asia UK US Where we have come fromThe Group today

5. 5 Participation Should we be in our historic markets and sectors or new ones or both? Ambition What goals, targets and timeframe should we set for the franchises we are building? Competitive Advantage What choices should we make regarding entry strategy, management model, distribution, product participation, and brand? Leveraging Capabilities What sources of competitive advantage can we utilise in building up a new franchise? Consistent strategic thinking about business fundamentals Building a Franchise: Overview

6. 6 China Indonesia India Japan Malaysia Singapore Philippines Thailand Taiwan South Korea Vietnam Hong Kong 1992 2000 2008 No Participation Life Business Participation Driven by regional growth and stability Building a Franchise: Participation

7. 7 Building a Franchise: Ambition Clear ambition… Recognised as market leader Market share growth not at expense of profitability Disciplined focus on market leadership and profitability …leading to results New Business Value 418 208 243 241 144 367 266 259 277 285 653 514 0 200 400 600 800 1,000 1,200 2004200520062007 Asia US UK £ million

8. 8 Building a Franchise: Competitive Advantage and Capabilities Reliance on organic growth on the back of accelerated greenfield acquisitions and JVs Life Business Participation China Indonesia India Japan Malaysia Singapore Philippines Thailand Taiwan South Korea Vietnam ‘Cold start’ Acquisition of entry vehicle JV No Participation Hong Kong

9. 9 Clearly defined Group ambitions and growth targets Empowerment of the country CEO to define business strategies within this framework Inter-regional and inter-Group leverage of expertise and support Federal Management Model Distribution Product Participation Brand Strong agency relationships Innovative bank distribution Direct sales Product innovation Tailored to consumer needs Consistently striving to meet customer needs with capital efficient solutions Brand recognition Striking logo transcends language barriers Common set of customer friendly values All based on financial strength and long term commitment to markets Business Model Building a Franchise: Competitive advantage and capabilities Country management aligns business model to local needs

10. 10 1.Consistency between product range and customer proposition 2.Low cost without sacrificing quality of service 3.Flexibility Building a Franchise Market-driven product portfolio management

11. 11 Launching consumer finance Entering the drawdown space Meeting a wider range of customer needs Assessing current offers in the market Managing the Franchise Expanding the product portfolio in Asia

12. 12 Conclusion Disciplined capital allocation Disciplined risk management Capital adequacy Returns and growth