Principal Financial Group Inc · NASDAQ:PFG
Principal Financial — IPO Roadshow (June 2007)
91 slides from Principal Financial's IPO roadshow presentation, Jun 13, 2007
Slide 1: Annual MTN/GIC Analyst Conference June 13, 2007
Annual MTN/GIC Analyst Conference June 13, 2007
Slide 2: Table of Contents
Table of Contents Tab 1 Company Overview Tab 2 Financial Overview Tab 3 Risk Management Tab 4 Investment Portfolio Tab 5 Principal Global Investors Tab 6 Appendix
Slide 3: Forward Looking Statements
Forward Looking Statements Certain statements made by Principal Financial Group, Inc. and its subsidiaries ("the Company") which are not historical facts may be considered forward-looking statements, including, without limitation, statements as to sales targets, sales and earnings trends, and manage
Slide 4: Use of Non-GAAP Financial Measures
Use of Non-GAAP Financial Measures A non-GAAP financial measure is a numerical measure of our performance, financial position, or cash flows that includes adjustments from a comparable financial measure presented in accordance with U.S. GAAP. We use a number of non-GAAP financial measures that manag
Slide 5: Simplified Organizational Structure
Principal Financial Group Simplified Organizational Structure Simplified Organizational Structure Simplified Organizational Structure GICs, funding agreements and other products issued by Principal Life Insurance Company are obligations of Principal Life and are not obligations of Principal Financia
Slide 6: Financial Reporting Structure
Principal Financial Group Financial Reporting Structure
Slide 7: Company Overview
Company Overview
Slide 8: The Principal: 128 Years of Success
1879 1911 1936 1941 1968 1990 1998 1999 2001 1970s 2002 2004 Life Assoc Mutual Life Company Mortgage Banking/ Commercial Mortgages Group Health/ Pension Mutual Funds Defined Contribution Principal International Principal Bank / Mutual Holding Company Principal Global Investors BCI Acquisition/ TRS s
Slide 9: The Principal Edge: Putting Strengths to Work
The Principal(r) Edge: Putting Strengths to Work Our Growth Strategy: Maximize strong presence in SMB market Capitalize on retirement-centric experience Leverage multi-channel distribution Maximize Worksite marketing advantage Expand in select markets internationally Seek to exceed the investment an
Slide 10: Strengths That Work: SMB Market Leadership
1Q06 5-9 ees 1.94 10-19 ees 4 20-49 ees 6.71 50-99 ees 9.93 100-249 ees 12.25 250-499 ees 14.46 500-999 ees 15.25 1000+ 13.61 STRENGTHS THAT WORK: SMB Market Leadership Relationships with over 100,000 employers % of Employers Served
Slide 11: Strengths That Work: Retirement Leadership
STRENGTHS THAT WORK: Retirement Leadership US Asset Int'l Asset Life & Health Mortgage Banking Corp. & Other 221.9 19.1 12.3 0 3.6 Principal Financial Group Assets Under Management: $270.1 Billion March 31, 2007 U.S. Asset Mgmt. & Accumulation 85.7% Corporate & Other 1.6% Life & Health Insurance 4.6
Slide 12: Strengths That Work: Insurance & Employee Benefits Know-How
Health 26% Specialty Benefits 40% STRENGTHS THAT WORK: Insurance & Employee Benefits Know-How Leading Provider: #7 Life Insurance (statutory assets) #9 Health Insurance (premiums earned) #3 Non-medical coverage (in-force) #5 Dental #3 Group Term Life #4 Short-Term Disability #6 Long-Term Disability
Slide 13: Strengths That Work: A Multichannel Approach
STRENGTHS THAT WORK: A Multichannel Approach Proprietary Career Agency Principal Connection Via employers Worksite Wirehouses, Regional B/Ds & planners Channels Insurance producers Non-Proprietary / Independent Banks B/Ds and Marketers Direct Affiliated Investment- oriented Insurance- oriented Banks
Slide 14: Strengths That Work: Asset Management Expertise
STRENGTHS THAT WORK: Asset Management Expertise Principal Global Investors ranking (by assets) 2005 2004 2003 World ranking 71 92 93 U.S. institutional Ranking 23 27 26 Principal Global Investors 2005 Rankings US Real Estate #4 Defined Contribution #13 Fixed Income #16 Large Cap Growth #28 Emerging
Slide 15: Strengths That Work: Investment Excellence
STRENGTHS THAT WORK: Investment Excellence The Principal Retirement Plan Separate Accounts in Top Two Morningstar Quartiles (as of 3/31/07) The Principal Retirement Plan Separate Accounts in Top Two Morningstar Quartiles (as of 3/31/07) 1yr 70% 3yr 90% 5yr 89% 2001 2002 2003 2004 2005 2006 1Q07 East
Slide 16: Strengths That Work: Leverage 60+ Years of U.S. Retirement Expertise
STRENGTHS THAT WORK: Leverage 60+ Years of U.S. Retirement Expertise 60+ Years U.S. Experience: Retirement expertise SMB knowledge Asset management distinction Regulatory experience Administration/Recordkeeping excellence +37% CAGR +34% CAGR 2004 2005 2006 2004 2005 2006 AUM ($B) Operating Earnings
Slide 17: Disciplined Use of Capital
Principal Financial Group Disciplined Use of Capital 1. ORGANIC GROWTH 2.STRATEGIC ACQUISITION 3. RETURN TO SHAREHOLDERS
Slide 18: Strengths That Work: Astute Capital Management
STRENGTHS THAT WORK: Astute Capital Management Cash Dividends Share Repurchase 2002 84 750 2003 145 453 2004 167 772 2005 182 867 2006 215 750 834 598 939 1049 965 03/31/07: $100 million share repurchase completed 05/22/07: announced authorization of $250 million share repurchase
Slide 19: Growth Strategy Drives Results
Growth Strategy Drives Results* '01 '02 '03 '04 '05 '06 CAGR ('01-'06) 1Q07 Operating Earnings ($M) $577 $579 $668 $765 $862 $972 11% $237 Net Income $359 $142 $746 $826 $901 $1,031 23% $257 Avg. # Shares (M) 362 351 327 315 290 276 -5% 271 EPS $1.59 $1.65 $2.04 $2.43 $2.97 $3.53 17% $0.87 AUM ($B)
Slide 20: Strong Earnings Growth with Stability
STRENGTHS THAT WORK: Strong Earnings Growth with Stability 12/31/2001 3/31/2002 6/30/2002 9/30/2002 12/31/2002 3/31/2003 6/30/2003 9/30/2003 12/31/2003 3/31/2004 6/30/2004 9/30/2004 12/31/2004 3/31/2005 6/30/2005 9/30/2005 12/31/2005 3/31/2006 6/30/2006 9/30/2006 12/31/2006 Qtrly EPS 0.4 0.41 0.44 0
Slide 21: Winds of Change
Winds of Change Winds of Change Government programs under pressure Employers facing increased global competition Changing role for employee/individual
Slide 22: The Government: Core Benefit Programs Under Pressure
Aging of population Life expectancies increasing Social Security/Medicare/Medicaid funding concerns Continued inflation in healthcare costs REALIZATION: Government cannot afford to provide all The Government: Core Benefit Programs Under Pressure
Slide 23: Employers: Squeezed by global competition & rising benefit costs
Employers: Squeezed by global competition & rising benefit costs Costs of benefits as a percent of compensation 1955 1980 2006 Source: March 2006, Bureau of Labor Statistics Makeup of benefit costs Insurance Retirement and Savings Insurance Retirement and Savings 1980 2006
Slide 24: Individuals: Facing a New Era of Personal Responsibility
5 42 19 22 40 14 22 36 0 25 50 75 100 1974 2030E Percent Income from Personal Assets (i.e. IRA's, 401(k) plans) Wages in Retirement Federal Income (i.e. Social Security Private Pension Plans (i.e. Defined Benefit Plans) Source: EBRI and Cerulli Associates, 2005 44% 76% Individuals: Facing a "New Era
Slide 25: Tailwinds of Growth
Tailwinds of Growth Pension Protection Act opportunities (PPA) Worksite Marketing Total Retirement Solutions Evolution of Income Management Global Opportunity
Slide 26: Retirement depth & breadth to capitalize on PPA
Suite of services to capture range of DB plan options: Plan analysis & asset review Plan design & redesign Plan freeze & termination DC consulting for transitions from DB to DC Auto options already in play Expanded education & guidance capabilities DB(k) Work Secure Retire Secure Defined Benefit Ref
Slide 27: Proven Autopilot Features to Capitalize on Participant Preferences
GROWTH AT WORK: Proven "Autopilot" Features to Capitalize on Participant Preferences 69% of workers favor auto enrollment 65% of workers favor auto increase 73% of workers are interested in Lifecycle funds 75% Of workers prefer to have someone else manage their money for them Source: 2005/2006 Annua
Slide 28: Our Unique Worksite Approach
GROWTH AT WORK: Our Unique Worksite Approach What it IS: Financial solutions for the "rest of us" Needs analysis Personalized guidance Simplified enrollment Planning resources Local service What it IS NOT: Product pushing by commissioned sales people High net worth only
Slide 29: Total Retirement Solutions Provider
GROWTH AT WORK: Total Retirement Solutions Provider Comprehensive retirement plan consulting and administration for all plan designs, including DB, DC, ESOP, and NQ Benefits to Employers Best-in-class DC products Principal Connection to assist employees Simplifies participant data management Expande
Slide 30: Evolution of Income Management
GROWTH AT WORK: Evolution of Income Management What people WANT/NEED: Simple Customization Advice Liquidity Portability Our Approach Auto features Needs-based Easy-to-use Education & guidance Flexibility Our Strategy: Manage each phase separately to maximize both accumulation and payout Source: Inte
Slide 31: Strongly focused on retention
2003 2004 Total DC assets retained by all channels in $ Millions Retirees Job Changers 2002 374 1701 2003 469 2001 2004 527 2400 2005 726.6 2776.6 2006 763.3 2921.8 2007 297.3 658 % TOTAL Assets retained as a percentage of assets at risk $2,486 $3,005 $3,518 Job changers Retirees GROWTH AT WORK: Str
Slide 32: Well-positioned for Global Growth
PRINCIPAL FINANCIAL GROUP Headquarters Des Moines, Iowa Mexico Principal AFORE Pensions Principal Seguros Life Insurance Principal Pensiones Annuities Principal Fondos de Inversion, S.A. de C.V (PFI) Mutual Funds, IAM Chile Principal Vida Annuities / Pensions Principal Creditos Hipotecarios Resident
Slide 33: Where We Look for Future Growth
Where We Look for Future Growth Grow asset accumulation business Total retirement solutions Worksite Pension Protection Act (PPA) Grow asset management business Third party mandates International growth Asian hemisphere Retirement focus Life & Health very important Supplement retirement businesses B
Slide 34: The Principal: Summary
The Principal(r): Summary Unique financial services organization Special expertise in serving SMB Leadership position in U.S. retirement services Expanding into select international markets Broad competencies to capture the future retiree market Strong capital position
Slide 35: Financial Highlights
Financial Highlights
Slide 36: Strategic Recap
Strategic Recap Grow Earnings Manage Capital Control Risk Increase Shareholder Value
Slide 37: Product Scope Enhances Earnings Diversity
Product Scope Enhances Earnings Diversity, Increases Growth Potential Retirement Services Life and Health Investment Mgmt
Slide 38: Operating Earnings by Segment and Net Income
Principal Financial Group (by Segment and Net Income) Strong Growth in Earnings For twelve months ended (dollars in millions) 12/31/04 12/31/05 12/31/06 U.S. Asset Management & Accumulation $499.0 $538.4 $645.1 Int'l Asset Management & Accumulation 40.3 71.0 71.8 Life & Health Insurance 256.2 274.4
Slide 39: Operating Earnings by Segment, Three Months
Principal Financial Group Operating Earnings (by Segment and Net Income) For three months ended (dollars in millions) 3/31/06 3/31/07 '06 to '07 Change U.S. Asset Management & Accumulation $157.8 $178.4 13.1% Int'l Asset Management & Accumulation 17.6 19.3 9.7% Life & Health Insurance 70.4 45.5 (35.
Slide 40: Operating Earnings by Segment
Principal Financial Group Operating Earnings by Segment 4Q02 1Q'03 2Q'03 3Q'03 4Q'03 1Q'04 2Q'04 3Q'04 4Q'04 1Q'05 2Q'05 3Q'05 4Q'05 1Q'06 2Q'06 3Q'06 4Q'06 1Q'07 USAMA 83.7 97.5 105.7 107.9 114.1 119.5 121.7 123.5 134.3 138.6 130.5 133.3 136 157.8 151.2 157.4 178.7 178.4 Total Operating Earnings 17
Slide 41: Assets Under Management by Source
Principal Financial Group Assets Under Management by Source 6/22/1905 12/31/2001 Dec 31 '02 Dec 31 '03 12/31/2004 12/31/2005 12/31/2006 3/31/2007 USAMA 78.1 82.2 92.3 120.8 142.1 164.3 221.9 231.5 IAMA 28.4 25.3 4.4 7.5 10.2 15.4 19.1 22 Life & Health 9.3 9.6 10.3 10.9 11.7 12.3 12.3 12.4 Mortgage B
Slide 42: Total Capital
Principal Financial Group Total Capital 6/22/1905 12/31/2001 Dec 31 '02 Dec 31 '03 12/31/2004 12/31/2005 12/31/2006 3/31/2007 Common GAAP Equity 78.1 82.2 92.3 120.8 6231 6271 6472 231.5 Preferred Equity 28.4 25.3 4.4 7.5 542 542 22 Balance Sheet Debt 9.3 9.6 10.3 10.9 1125 1374 1638 12.4 Other Debt
Slide 43: Operating Earnings and Equity Growth
Principal Financial Group Operating Earnings and Equity Growth 4Q02 1Q'03 2Q'03 3Q'03 4Q'03 1Q'04 2Q'04 3Q'04 4Q'04 1Q'05 2Q'05 3Q'05 2002 2003 2004 2005 2006 Operating Earnings 83.7 97.5 105.7 107.9 114.1 119.5 121.7 123.5 134.3 138.6 130.5 133.3 579.3 667.7 764.8 862.4 972.1 ROE 177.9 210.5 165.8
Slide 44: Actual Return on Average Equity
Principal Financial Group Actual Return on Average Equity (1) x-OCI (2) Trailing Twelve Months 3/31/07 (1)equity available to common stockholders (2) x-OCI: excluding other comprehensive income Operating Segment Operating Earnings Average Equity Return on Average Equity USAMA $665.7 $3,411.2 19.5% I
Slide 45: Strong Financial Performance
Principal Financial Group Strong Financial Performance '01 '02 '03 '04 '05 '06 CAGR ('01-'06) Operating Earnings (1) ($M) $577 $579 $668 $765 $862 $972 11% Net Income ($M) $359 $142 $746 $826 $901 $1,031 23% Avg. # Diluted Shares (M) 362 351 327 315 290 276 -5% Diluted EPS $1.59 $1.65 $2.04 $2.43 $2
Slide 46: Principal Life Insurance Company Summary Financial Information
Principal Life Insurance Company Summary Financial Information (1) Defined as total GAAP revenues excluding operating revenues from discontinued real estate and excluding net realized capital gains and related fee adjustments. (2)Presented on a GAAP basis. (3) Defined as net income before net realiz
Slide 47: Principal Life Financial Strength Ratings
Principal Life Insurance Company Financial Strength Ratings S&P "AA", Very Strong (3rd highest of 21 levels) Moody's "Aa2", Excellent (3rd highest of 21 levels) A.M. Best "A+", Superior (2nd highest of 16 levels) Fitch "AA", Very Strong (3rd highest of 21 levels) Note: All ratings have stable outloo
Slide 48: Principal Financial Group Key Financial Targets
Principal Financial Group Key Financial Targets 2005 Actual 2006 Actual Operating Earnings Per Diluted Share Average Annual Growth 11-13% $2.97 22% $3.53 19% Operating Return on Average Equity Average Annual Growth +0.5%/yr 13.8% +1.5% 15.3% +1.5% Debt/Capital - Moody's <25% 20% 23% Liquidity - S&P
Slide 49: Principal Life Insurance Company Key Financial Targets
Principal Life Insurance Company Key Financial Targets 2005 Actual 2006 Actual Capital Ratio - S&P >165% 270% 220%* Liquidity - S&P >260% 360% 373%* GIC/FA Exposure - Moody's <35% 33% 32% *estimated based on prior year's model
Slide 50: Risk Management at The Principal
Risk Management at The Principal(r)
Slide 51: Strategic Recap
Strategic Recap Risk aware and risk astute culture Diligent and disciplined ERM tied to strategy; influences decision making Established risk tolerance guidelines Tools, processes to identify, assess, measure, monitor, and manage risk Prepare for the unexpected ERM continuously evolving to reflect n
Slide 52: Established Risk Tolerance Guidelines
Established Risk Tolerance Guidelines Overall Enterprise Tolerance Guidelines: Adequate capital and performance to maintain at least AA financial strength rating Adequate economic capital to meet obligations and protect shareholder value within a 99.5% confidence interval ROE ^ 15% Liquidity ratios
Slide 53: Organizational Structure
Organizational Structure Federated Model Board and senior management accountability for risk management Chief Risk Officer - independent oversight, integration, coordination, consolidation Authority and influence Oversight coordinated with Business Risk Consulting, Financial Reporting Business units
Slide 54: Risk Management Tools and Processes
Risk Management Tools and processes to assess, monitor, and manage risk Defined standards/guidelines/policies (Financial, Actuarial, IT, Privacy, Security and Safety, Underwriting, Investment, Pricing, Product Development, etc.) Corporate Code of Ethics Defined units, metrics, thresholds Actuarial Q
Slide 55: Recent Performance and Current Activities & Opportunities
Recent Performance and Current Activities & Opportunities Documented risk management philosophy and inventory of risks MG - ALFA modeling 10-year financial forecasts 5-quarter rolling financial forecasts Other regular reporting - dynamic liquidity analysis, credit exposure, counterparty exposure, re
Slide 56: Broad Categories of Risks
Broad Categories of Risks at the Principal Financial Group Insurance/Actuarial Asset/Liability Matching (ALM) Legal/Regulatory Mortality Mismatch Risk Lawsuits Morbidity Reinvestment Risk Compliance Other Assumptions Pricing Errors Operational Investment Technology Credit Financial/Strategic Plannin
Slide 57: Non-Par Pension Business Liabilities
Full Service Payout GICs - Full Service GICs - Investment Only Funding Agreements East 6240.5 6787.4 5663.7 11580.6 West 30.6 38.6 34.6 31.6 North 45.9 46.9 45 43.9 Full-service Payout GICs - Investment Only GICs - Full Service Funding Agreements 2005 6450.3 5821 7282 12115.7 2006 6611 4751.55 7255.
Slide 58: Non-Par Pension Business Risk Management: Interest Rate Risk
Non-Par Pension Business Risk Management Interest Rate Risk Tools used Duration matching Key rate duration matching Daily hedging Scenario analysis Disciplined to stay within mismatch allowances 0.25 year duration 0.10 year key rate Employ various methods to correct duration mismatches Sell assets C
Slide 59: Non-Par Pension Business Risk Management: Liquidity Risk
Non-Par Pension Business Risk Management Liquidity Risk Monitoring and forecasting processes in place at both business unit and overall corporate level Analysis performed quarterly We carefully watch external measures S&P liquidity model, internal target 360% Moody's liquidity model, internal target
Slide 60: Summary
Summary The Principal Financial Group is risk aware, risk astute, committed to and diligent about risk management We are in the risk business and willing to take risks - on an informed basis
Slide 61: Investment Portfolio Overview
Investment Portfolio Overview* *All data in this section of the presentation excludes assets that are not part of Principal Life Insurance Company consolidated cash and invested assets.
Slide 62: Investment Philosophy and Strategy
Investment Philosophy and Strategy Active Asset/Liability Management and Strategy Optimize Risk Adjusted Yields and Returns Maintain Quality Well-Diversified Portfolio
Slide 63: Cash and Invested Assets
Principal Life Insurance Company Cash and Invested Assets GAAP Basis 3/31/2006 Real Estate 1.6 Policy Loans 1.5 Other Investments 1.4 Equity Securities 1.4 Residential Mortgages 1.9 Commercial Mortgages 17.4 Cash 2.4 Private Bonds 22.2 Public Bonds 50.2 3/31/2007 Real Estate 1.4 Policy Loans 1.4 Oth
Slide 64: Corporate Fixed Maturities Portfolio by Industry
Principal Life Insurance Company U.S. Invested Assets Corporate Fixed Maturities Portfolio by Salomon Industry (GAAP Basis) 3/31/2006 Bank 12.6 Insurance 10.1 Finance-Other 14.6 Consumer 3.5 Energy 8.9 Manufacturing 17.8 Industrial-Other 0.2 Service 15.4 Transport 2.8 Electric 8.3 Utility-Other 0.1
Slide 65: U.S. Fixed Maturities Composition by Asset Type
Principal Life Insurance Company U.S. Fixed Maturities Composition by Asset Type (GAAP Basis) 3/31/2006 Agency, Treasury, Other 6 RMBS 6 CMBS 11 ABS 5 Corporate Public 48 Corporate Private 24 3/31/2007 Agency, Treasury, Other 6 RMBS 6 CMBS 11 ABS 6 Corporate Public 46 Corporate Private 25 March 31,
Slide 66: Fixed Maturities Portfolio Composition by Foreign Area
Principal Life Insurance Company U.S. Invested Assets Fixed Maturities Portfolio Composition by Foreign Area (GAAP Basis) 3/31/2006 United Kingdom 27 European Union 25 Australia 9 Japan 1 All Others 15 Mexico 4 Asia 12 South America 7 3/31/2007 United Kingdom 27 European Union 27 Australia 9 Japan 1
Slide 67: Fixed Income Securities Portfolio
Principal Life Insurance Company U.S. Invested Assets Fixed Income Securities Portfolio GAAP Carrying Value % of Fixed Income Securities Portfolio % of Fixed Income Securities Portfolio % of Fixed Income Securities Portfolio % of Fixed Income Securities Portfolio % of Fixed Income Securities Portfol
Slide 68: Problems, Potential Problems, and Restructured
Principal Life Insurance Company Fixed Income Securities Portfolio Problems, Potential Problems, and Restructured 2004 2005 2006 3/31/2007 Problems 68.5 42 3.5 7 Potential Problems 119.6 101.6 2.2 0 Restructured 10.4 0 11.2 10.5 68.5 119.6 101.6 0.0 10.4 GAAP Basis 42.0 3.5 2.2 11.2 7.0 0.0 10.5
Slide 69: Fixed Income Securities Impairment Review Process
Fixed Income Securities Impairment Review Process Monthly review of all exposures on watch list Rigorous analysis on all exposures trading materially below par Determination made if the credit is temporary or permanent impairment based on fundamental credit analysis
Slide 70: Commercial Mortgage Loan Portfolio
Composition by U.S. Region Composition by Type Principal Life Insurance Company Commercial Mortgage Loan Portfolio March 31, 2007 (Statutory Basis) Mortgage Loans = U.S.$9.0 Billion Number of Loans Outstanding = 1,013 Average Loan Size = U.S.$8.9 Million Industry (ACLI) - 03/31/2007 Principal Life -
Slide 71: Commercial Mortgage Restructured & Delinquent/Foreclosed Loan Ratio
NOTES: 1. Delinquency and foreclosure ratio is defined as mortgages 60 or more days delinquent, in the process of foreclosure, and foreclosed/deeded during the year, as a percentage of the commercial mortgage portfolio balance. 2. A restructured loan is a loan in good standing for which basic terms,
Slide 72: Commercial Mortgage Loan Reserve/Loss Process
Commercial Mortgage Loan Reserve/Loss Process Monthly meeting to review entire watchlist, including an analysis of loan-to-value. Rigorous review of all loans deemed most at risk. Determination is made if a loss is probable. If loss is probable, a reserve is established.
Slide 73: Investment Portfolio Summary
Investment Portfolio Summary Active asset/liability management Broadly diversified portfolio across asset class, credit, industry and geographic location Predominantly high quality portfolio
Slide 74: Investment Portfolio 2007 Focus
Investment Portfolio 2007 Focus Enhancing diversification Active management of the portfolio Maintaining quality of the portfolio
Slide 75: Investment Philosophy and Strategy
Investment Philosophy and Strategy Active Asset/Liability Management and Strategy Optimize Risk Adjusted Yields and Returns Maintain Quality Well Diversified Portfolio
Slide 76: Principal Global Investors
Principal Global Investors &
Slide 77: Strategic Recap
Strategic Recap Grow a World-Class Global Asset Management Platform an attractive high growth, high-multiple business strategic complement to Principal Financial Group world-class asset accumulation business Provide competitive investment returns equities, fixed income and real estate through organi
Slide 78: Organizational Structure
Pat Halter Executive Director Real Estate Hazel McNeilage Executive Director International Affiliates Patrick Mc Nelis Executive Director Sales & Relationship Management Barb McKenzie Chief Operating Officer Operations Jill Hittner Chief Financial Officer Finance Tim Dunbar Executive Director Equiti
Slide 79: A Multi-Boutique Firm
A Multi-Boutique Firm Leadership Team (Operating Committee) Coordinated Shared Services Investment Platform 1 Investment Platform 2 Investment Platform N Operations & Compliance Financial Management Information Technology Coordinated Distribution PGI PGI International PGI Affiliates ....
Slide 80: Principal Global Investors
Principal Global Investors* A diversified global asset management organization $213.6 billion in assets under management as of 3/31/07 Broad range of capabilities, tailored to client objectives Global reach and clarity of purpose *Principal Global Investors represents the asset management operations
Slide 81: Recent Performance: Non-financial
Recent Performance Non-financial Non-affiliated assets under management have grown by $29 billion over the last two years (3/31/05 through 3/31/07) Principal Global Investors is the 38th largest institutional asset manager (1) Principal Global Investors is 3rd largest manager of mortgages (whole loa
Slide 82: Recent Performance: Financial
Recent Performance Financial Operating earnings for 2006 of $102.5 million (CAGR of 23% since 2001) Pre-tax profit margin of 32.2% has grown steadily over the last several years single most important metric for asset managers compares favorably with asset management peers Direct expenses (excluding
Slide 83: Other Issues
Other Issues Actively search out growth opportunities through acquisition Tremendous success with our past acquisitions of Post, Spectrum, Columbus Circle and now Edge Add to range of product offerings including absolute return alternatives and international fixed income capabilities Highly successf
Slide 84: Asset Management Affiliates
Principal Global Investors is the asset management arm of the Principal Financial Group(r) (The Principal(r)). This includes the asset management operations of the following members of The Principal: Asset Management Affiliates Asset Management Affiliates Principal Global Investors, LLC Principal Re
Slide 85: Thank you
Thank you
Slide 86: Appendix
Appendix
Slide 87: Non-GAAP Financial Measures for Principal Financial Group, Inc.
Non-GAAP Financial Measures for Principal Financial Group, Inc.
Slide 88: Non-GAAP Financial Measures for Principal Financial Group, Inc.
Non-GAAP Financial Measures for Principal Financial Group, Inc.
Slide 89: Non-GAAP Financial Measures for Principal Financial Group, Inc.
Non-GAAP Financial Measures for Principal Financial Group, Inc.
Slide 90: Non-GAAP Financial Measures for Principal Financial Group, Inc.
Non-GAAP Financial Measures for Principal Financial Group, Inc.
Slide 91: Non-GAAP Financial Measures for Principal Life Insurance Company
Non-GAAP Financial Measures for Principal Life Insurance Company