This presentation may contain certain "forward-looking statements" with respect to

certain of Prudential's plans and its current goals and expectations relating to its
future financial condition, performance and results. By their nature, all forward-looking
statements involve risk and uncertainty because they relate to future events and
circumstances which are beyond Prudential's control including among other things,
UK domestic and global economic and business conditions, market related risks such
as fluctuations in interest rates and exchange rates, the policies and actions of
regulatory authorities, the impact of competition, inflation, deflation, the timing, impact
and other uncertainties of future acquisitions or combinations within relevant
industries, as well as the impact of tax and other legislation and other regulations in
the jurisdictions in which Prudential and its affiliates operate. As a result, Prudential's
actual future financial condition, performance and results may differ materially from
the plans, goals, and expectations set forth in Prudential's forward-looking
statements.
“CAN EMERGING MARKETS GENERATE
SUPERIOR RETURNS?”

Goldman Sachs European Financials Conference, 11 June 2002

JONATHAN BLOOMER
GROUP CHIEF EXECUTIVE
PRUDENTIAL PLC
PRUDENTIAL PLC: A STRATEGIC OVERVIEW

 A leading international retail financial services player

 Focus on medium and long term savings
 A market leader in our chosen territories
- UK
- US
- Asia
 Diversified products and distribution channels
 Scale and resources for future growth, internationally
 Balancing short-term and long-term strategies to deliver value to our
shareholders
GROWTH FROM INTERNATIONAL DIVERSIFICATION

New business sales FY2001 New business sales by region 1996- 2001
£m
25000

20000

15000

10000

5000

0
1996 1997 1998 1999 2000 2001

UK & Europe US Asia

ASIA: POTENTIAL FOR SUSTAINED GROWTH

The most densely-populated region in the world:

China and India each have more than 3x US population
Population (millions)
Indonesia has higher population than France, UK and
China 1,266 Germany combined
India 1,007
Indonesia 210 9% Average GDP growth % 1971-2000 8.6
8.0 8.1
Japan 127 8% 7.5
7% 6.7 6.9
Vietnam 78 6.4
6% 5.9
Philippines 81 4.9
5%
Thailand 63
4% 3.5
3.3
S. Korea 47 3%
Malaysia 23 2%
Taiwan 22 1%
Hong Kong 7 0%
Japan Phil India Indo Thai HK Malay Korea Sing Taiwan China
Singapore 4 Asia delivers consistently high GDP growth despite
several economic crises in last 30 years

Source: UBSW 30 Aug 01

MARKET SIZE AND GROWTH: A GLOBAL PERSPECTIVE

Asian Life and retail bank deposits are larger than UK and US and growing rapidly;
Asian MF balances are relatively smaller but growing fast

Life Premiums Mutual Funds FUM Retail Bank Deposits

(2000, £bn) (2000, (2000, £bn)
£bn) 6,000
350 5,000
300 5,000
2,500
250 4,000
2,000
200 Japan Japan
1,500 3,000
150
1,000 2,000
100

50 500 1,000
ROA Japan ROA
0 ROA 0
0
Asia UK US Asia UK US Asia UK US
1990-99 1 Japan 7 4 1997-00 20 Japan 17 25 1995-99 1 Japan 5 6
Growth (%) 11 ROA Growth (%) 14 ROA Growth (%) 10.5%

Source: Swiss Re; Group Position Assessment; Federal Reserve

LIFE INSURANCE MARKETS IN ASIA

LIFE PENETRATION INCREASES AS ECONOMIES DEVELOP:

US$10,000 IS INFLECTION POINT

Life Penetration Market Growth

Penetration, 19991 New Business
12% = $1bn in NB
Premiums, $m Growth
Premiums
Japan 16,413 2%
10% S Korea Korea 7,966 11%
Japan Taiwan 4,564 11%
8% China 851 22%
India 1,375 20%
6% Taiwan Hong Kong 850 9%
Singapore 540 9%
4% Hong Kong Thailand 354 12%
India Singapore Malaysia 380 11%
2% Malaysia
China
Thailand
Philippines 140 12%
Philippines Indonesia Indonesia 214 15%
0% Vietnam Vietnam 78 22%
1,000 10,000 100,000
Per Capita GDP2, US$ (log scale)

1. Source: Swiss Re; 2. Source: CIA

ASIA: OPPORTUNITIES FOR FOREIGN PROVIDERS

RFS BALANCES IN DOMESTIC AND FOREIGN COMPANIES

 Foreign players have had difficulties

98% 98% 95%
88%
capturing market share
 97/98 economic crisis lowered some
barriers
 US and European companies see
scale of opportunity in Asia

12%  But significant hurdles are still in place

2% 2% 5%

Indonesia Japan Korea Thailand

Domestic Foreign

Source: Morgan Stanley Research, Aug 01

LONG-TERM VISION FOR DEVELOPMENT OF PRESENCE
IN ASIA

ACHIEVE SUSTAINABLE RFS LEADERSHIP WITH LEVELS OF

CUSTOMER ACCESS, SHARE OF WALLET, PROFITABILITY, AND SCALE
COMPARABLE TO LEADING RETAIL FINANCIAL SERVICES GROUPS

Geography
Expand into Asian markets with the

largest and most profitable pools of
target customers

Distribution Products
 Improve efficiency and  Provide products that continue to
effectiveness of current meet customer needs
distribution channels  Offer broader range of needs-
 Expand distribution options: based, Retail Financial Services
– access more customers products:
– give customers choice in – life and pensions
accessing Prudential – mutual funds
– maximise “stickiness” and – general insurance
productivity of each Target Customers – banking
relationship through cross- Professional/mass to cement and deepen customer
selling affluent segment relationship
RELATIVE LIFE MARKET POSITION

No of Markets in Top 5

 AIG
6-8
Prudential

4-5  Manulife  Allianz

 ING
2-3  Great Eastern  NY Life

 Aegon
 CGNU
 Mass Mutual
0-1  Cathay Life  US Prudential
 Axa
 Zurich
 RSA
 Sun Life

1-2 3-6 7-8 9+

Market Presences/Licences

Source: PCA analysis

PRUDENTIAL’S STRATEGIC PRIORITIES: CAPITALISE ON THE
OPPORTUNITIES

 Build a scale presence in North Asia and Greater China

- largest profit pools and target customer bases
 Grow and strengthen tied agency forces
 Continue to evolve towards multi-distribution model
- building upon recent successes in bank/direct distribution
 Build profitable and material regional Mutual Fund business
 Migrate to lower-cost operating configuration with multi-country
processing
 Continue to develop structure and resource pool
ASIA: FINANCIAL HIGHLIGHTS

SALES NEW BUSINESS ACHIEVED PROFIT

£m £m
255
450 434 +66
400 %

350
+70
300 %
153
256
250
+61
200 %
90
150 124 56
100 83

50

0
1998 1999 2000 2001
Singapore Malaysia Hong Kong
Taiwan Japan Others
CAPITAL FLOWS IN ASIA: UPDATE

Net capital flows  Japan and Korea acquisitions

 Increased investment in Indonesia
274
and Taiwan

144
Summary (1994 to 2001)
158
£m
76
Acquisitions 533
(1)
22
7 11
Working capital 264
Repatriations (106)
Net capital 691
CONCLUSION: BENEFITS CAN BE REAPED FROM SUCCESSFUL
PARTICIPATION IN EMERGING MARKETS

 Markets are attractive and will remain so for the foreseeable future
 To succeed a participant needs:
- strong and capable management team
- strong track record of performance delivery
- financial strength
- profitable business model
- ability to leverage pan-regional presence
- continued focus on costs
- clear view of future opportunities and challenges
 Strategy and capabilities must be designed to deliver profitable growth
PRUDENTIAL PLC