Prudential Financial, Inc. · NYSE:PRU
Prudential Financial — Investor Presentation (December 2016)
16 slides from Prudential Financial's investor presentation, Dec 15, 2016
Slide 1: Prudential Financial, Inc. 2017 Financial Outlook Conference Call Presentation
Prudential Financial, inc. 2017 Financial Outlook Conference Call Presentation December 15, 2016 Exhibit 99.1
Slide 2: Building Prudential's Investor Value Proposition
Building Prudential’s Investor Value Proposition 2017 Financial Outlook Conference Call Includes capital deployed through subsidiaries. Achieve Key Financial Objectives Fortify Leadership Position Maintain differentiated ROE Free cash flow (1) ~60% of after-tax adjusted operating income (AOI) over t
Slide 3: Return On Equity
Return On Equity (1) 2017 Financial Outlook Conference Call Near to intermediate term ROE objective of 12% to 13% Trailing 12 Months ended 9/30/16 ROE based on AOI excluding market driven and discrete items as disclosed on page 14; average equity excludes accumulated other comprehensive income (AOCI
Slide 4: Key Considerations by Business: International and Individual Life
Key Considerations by Business 2017 Financial Outlook Conference Call International Businesses Product repositioning to adapt to current environment including currency and interest rate considerations Focus on protection products with returns driven by mortality and expense margins Continue to migra
Slide 5: Key Considerations by Business: Retirement and Annuities
Key Considerations by Business 5 2017 Financial Outlook Conference Call Retirement Continued development of Pension Risk Transfer (PRT) market expected to drive account value growth; roughly $3 billion of new funded business and $1 billion of longevity reinsurance required to fully offset anticipate
Slide 6: 2017 Outlook
2017 Outlook 6 2017 Financial Outlook Conference Call Key Assumptions & Considerations: S&P 500 ending 2017 at 2,310 U.S. Dollar @ 112 Yen and 1,130 Won Interest rates based on averaging of forward yield curves 10-Year Treasury of 2.50% at end of 2017 Continued investments to support innovation in p
Slide 7: 2017 Earnings Per Share Guidance
2017 Earnings Per Share Guidance 7 2017 Financial Outlook Conference Call As disclosed in the reconciliation on page 14. Adjustments for difference between fourth quarter 2015 and 2016 foreign currency exchange rates and for pertinent run rate adjustment items. Not a projection of full year 2016 res
Slide 8: Equity Market and Interest Rate Sensitivity
Equity Market and Interest Rate Sensitivity 2017 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 2017 Financial Outlook Conference Call Business mix and solid fundamentals continue to produce an attractive financial profile; we are continuing to invest in longer term strategic initiatives Solid EPS growth despite headwinds from interest rates, currencies, etc. Maintain different
Slide 10: Questions and Answers
Prudential Financial, inc. 2017 Financial Outlook Conference Call Presentation Questions and Answers December 15, 2016
Slide 11: Forward-Looking Statements
Forward-Looking Statements Certain of the statements included in this release constitute forward-looking statements within the meaning of the U. S. Private Securities Litigation Reform Act of 1995. Words such as “expects,” “believes,” “anticipates,” “includes,” “plans,” “assumes,” “estimates,” “proj
Slide 12: Non-GAAP Measure
Non-GAAP Measure 2017 Financial Outlook Conference Call Adjusted operating income is a non-GAAP measure of performance. Adjusted operating income excludes “Realized investment gains (losses), net,” as adjusted, and related charges and adjustments. A significant element of realized investment gains a
Slide 13: Reconciliations between AOI and the comparable GAAP measure
Reconciliations between adjusted operating income and the comparable GAAP measure(1) 2017 Financial Outlook Conference Call Represents results of the former Financial Services Businesses for periods prior to 2015. Trailing 12 ($ millions) months ended September 30, 2010 2011 2012 2013 2014 2015 2016
Slide 14: Reconciliations for pre-tax AOI excluding market driven and discrete items
Reconciliations for pre-tax adjusted operating income excluding market driven and discrete items 2017 Financial Outlook Conference Call AOI excluding market driven and discrete items as disclosed in company earnings conference call presentations and earnings releases available at www.investor.pruden
Slide 15: Reconciliation between AOI earnings per share and the comparable GAAP measure
Reconciliation between AOI earnings per share and the comparable GAAP measure 2017 Financial Outlook Conference Call Earnings per share of Common Stock (diluted): After-tax adjusted operating income 8.62 $ Reconciling items: Realized investment gains, net, and related charges and adjustments 2.58 In
Slide 16: 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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