Prudential Plc · LSE:PRU
Prudential — Investor Day (November 2016)
15 slides from Prudential's investor day presentation, Nov 16, 2016
Slide 1: UK
John Foley John Warburton UK
Slide 2: Agenda
Agenda • UK&E business and market context • Proposition update • Distribution focus • Performance • Summary
Slide 3: UK&E business and capabilities
UK&E business and capabilities Customers Brand • 6m customers • A leading retirement and savings brand Leading UK Financial Performance Retail Growth retirement • Sustainable cash • Retirement solutions and and savings generation and unique investments asset in WP fund business Distribution Investme
Slide 4: Our model
Our model Focussed participation in two distinct segments Cash and Retail Growth In-Force Optimisation Grow differentiated proposition & distribution Improve, re-shape, optimise • Mutual value creation for customers and • Significant ongoing value to be managed shareholders Segment • Opportunity to
Slide 5: Retirement market set for sustained growth
Retirement market set for sustained growth Structural factors underpinning long-term growth in chosen segment Retirement Market Growth “Pensions Freedoms” era – Flows into Retail Investment 2016 - 2030 growing demand for risk-managed investments to fund retirement Products (£bn, annual) 2016 2020 1.
Slide 6: PruFund range
PruFund range A unique proposition in the investment solutions market A Unique Customer Proposition PruFund Investment Performance1 PruFund PruFund Growth Cautious Range of 6 funds with risk-rating PruFund PruFund 100% 0%-30% 10%-40% PruFund + PruFund PruFund 80% Growth +75% 20%-55% 40%-80% 60% Glob
Slide 7: PruFund range years of growth and product innovation
PruFund range 12 years of growth and product innovation . Growth in AuM (£bn), Policy Count and PruFund Inflows: Diversification and Fall in Proposition Development Proportion Guaranteed 339 Policy Count (000s) AuM 258 9M 2011 9M 2016 189 Drawdown Pensions Bonds ISA Bonds 142 2% 125 22.8 6% Drawdown
Slide 8: Distribution
Distribution Market leading model in key channels, underpinning Retail Growth Multi-Channel Distribution Prudential Financial Planning Number of Adviser Firms Dealing Capability . AuA (£bn), and Partner Numbers AuA Partner Numbers 269 with Prudential (Monthly Averages) CAGR1 +12% Advisers 251 RDR PF
Slide 9: Sales
Sales Continued strong performance in “Pensions Freedoms” environment Total Sales Retail Growth (APE; £m)1 (APE; £m) RDR PF2 1025 836 151 871 834 746 41 762 CAGR 725 34 171 +60% 28 149 874 871 795 715 712 697 663 613 458 278 2011 2012 2013 2014 2015 9M 2015 9M 2016 9M 2014 9M 2015 9M 2016 Retail Who
Slide 10: Retail Growth sales
Retail Growth sales Sustained growth across wrappers and new propositions Bonds Individual Pensions (APE; £m) (APE; £m) 9M 2015 9M 2016 9M 2014 9M 2015 9M 2016 £207m £239m £292m £48m £100m £204m CAGR +19% CAGR +106% 87 94 96 100 96 77 76 80 83 74 70 63 67 50 60 27 35 38 15 21 24 12 Q1 Q2 Q3 Q4 Q1 Q2
Slide 11: Growing share of the retail investment market
Growing share of the retail investment market Strong performance in key retirement growth segments Retail Life and Pensions Income Drawdown Individual Pensions Investments (Advised Sales)2 (Advised Sales, including SIPPs)3 (Prudential as % of rest of market)1 H1 HY HY 2014 5% 8% 2014 10% 30% 2014 <2
Slide 12: Financials
Financials Robust retail sales and growth in profitability Total Retail Sales Retail New Business EEV Profit Retail New Business Margin (APE; £m) (Net) (£m) (APE, %) +42% +41% 0% 871 179 613 127 21 21 9M 2015 9M 2016 9M 2015 9M 2016 9M 2015 9M 2016
Slide 13: With-profits and PruFund range
With-profits and PruFund range Underpinning sustainable contribution to total cash remittance PruFund Total Shareholder Total Shareholder Transfer Total Cash Remittances Transfer from In-Force1 from all In-Force With-Profits2 to Group (£m) 297 313 355 325 331 £m Actual Projected £m Actual Projected
Slide 14: Re-engineering our operating model
Re-engineering our operating model Creating a Prudential for the future John Foley • New management team in place to Chief Executive Officer accelerate progress Jonathan Daniels David King Nicole Jones • 6M customers holding 7M policies CEO, Investments & Markets Chief Financial Officer Chief of Sta
Slide 15: Summary
Summary Long-term capital-efficient growth built on award winning customer propositions Unique proposition in a growth market Best in class distribution capability in key channels Re-engineering operating model to modernise customer offering and improve agility Resilient cash remittance