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

1

• 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.

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CAN EMERGING MARKETS GENERATE SUPERIOR
RETURNS? Goldman Sachs European Financials
Conference, 11 June 2002
JONATHAN BLOOMER GROUP CHIEF EXECUTIVE PRUDENTIAL
PLC
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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

4
GROWTH FROM INTERNATIONAL DIVERSIFICATION
New business sales by region 1996- 2001
New business sales FY2001
m
5
ASIA POTENTIAL FOR SUSTAINED GROWTH
The most densely-populated region in the
world China and India each have more than 3x US
population Indonesia has higher population than
France, UK and Germany combined
Average GDP growth 1971-2000
8.6
9
8.1
8.0
8
7.5
6.9
6.7
7
6.4
5.9
6
4.9
5
4
3.5
3.3
3
2
1
0
Japan
Malay
Sing
Taiwan
China
Phil
India
Thai
HK
Korea
Indo
Asia delivers consistently high GDP growth
despite several economic crises in last 30 years
Source UBSW 30 Aug 01
6
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, bn)
(2000, bn)
6,000
350
5,000
5,000
300
2,500
250
4,000
2,000
Japan
200
Japan
3,000
1,500
150
2,000
1,000
100
1,000
500
50
ROA
Japan
ROA
ROA
0
0
0
Asia
UK
US
Asia
UK
US
Asia
UK
US
1990-99 Growth ()
1 Japan 11 ROA
7
4
1997-00 Growth ()
20 Japan 14 ROA
17
25
1995-99 Growth ()
1 Japan 10.5
5
6
Source Swiss Re Group Position Assessment
Federal Reserve
7
LIFE INSURANCE MARKETS IN ASIA
LIFE PENETRATION INCREASES AS ECONOMIES DEVELOP
US10,000 IS INFLECTION POINT
Life Penetration
Market Growth
Penetration, 19991
New Business Premiums, m
1bn in NB Premiums
12
Growth
Japan
16,413
2
Korea
7,966
11
10
S Korea
11
Taiwan
4,564
Japan
8
China
22
851
India
1,375
20
6
Hong Kong
850
9
Taiwan
540
Singapore
9
4
Thailand
354
12

Hong Kong

Malaysia
Singapore
380
11
India
Malaysia
2
Philippines
140
12
China
Thailand
Indonesia
214
15
Philippines
Indonesia
0
Vietnam
78
22
Vietnam
1,000
10,000
100,000
Per Capita GDP2, US (log scale)
1. Source Swiss Re 2. Source CIA
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ASIA OPPORTUNITIES FOR FOREIGN PROVIDERS
RFS BALANCES IN DOMESTIC AND FOREIGN COMPANIES

• Foreign players have had difficulties capturing
  market share
• 97/98 economic crisis lowered some barriers
• US and European companies see scale of
  opportunity in Asia
• But significant hurdles are still in place

Source Morgan Stanley Research, Aug 01
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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

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RELATIVE LIFE MARKET POSITION
No of Markets in Top 5

• AIG

6-8
Prudential

• Manulife

• Allianz

4-5

• Great Eastern

• NY Life

• ING

2-3

• Cathay Life

• Aegon
• CGNU
• Mass Mutual
• US Prudential
• RSA
• Sun Life

• Zurich

• Axa

0-1
3-6
7-8
9
1-2

Market Presences/Licences
Source PCA analysis
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PRUDENTIALS STRATEGIC PRIORITIES CAPITALISE ON
THEOPPORTUNITIES

• 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

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ASIA FINANCIAL HIGHLIGHTS
NEW BUSINESS ACHIEVED PROFIT
SALES
m
m
255
66
434
70
153
256
61
90
124
56
83
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CAPITAL FLOWS IN ASIA UPDATE
Net capital flows

• Japan and Korea acquisitions
• Increased investment in Indonesia and Taiwan

274
144
158
76
22
11
(1)
7
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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

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PRUDENTIAL PLC