PRUDENTIAL UK ANDY BRIGGS B2B & Partnerships Director Dresdner Kleinwort Wasserstein Conference

1. PRUDENTIAL UK ANDY BRIGGS B2B & Partnerships Director Dresdner Kleinwort Wasserstein Conference 30 October 2003

2. INTRODUCTION • Prudential has diversified its business and hence developed a unique position from which to withstand turbulent markets Note: Based on Life and Pensions sales

3. PRUDENTIAL UK DISTRIBUTION MIX • Similarly in the UK, we have a much broader distribution spread 1993 2003 H1 Partnership 6% D2C 16% IFA 32% IFA 42% DSF 68% B2B 36% Note: Bulk sales included in B2B

4. PRUDENTIAL UK - STRATEGIC PRIORITIES • Financial strength • Size to scale • Brand • Product • Distribution

5. Scottish Widows Prudential* Axa Sun Life FAR excluding Alternative capital Aviva L&G Scottish Equitable Guardian Royal and SunAlliance Britannic Standard Life Pearl Royal London Equitable Clerical Medical Group Friends Provident -4.0% -2.0% 0.0% 2.0% 4.0% 6.0% 8.0% 10.0% Note:Free Asset Ratio above required minimum solvency margin excluding future profits, subordinated debt and financial reassurance Source: FSA Returns, Form 9 as at 31.12.02 * Excludes Scottish Amicable closed funds (Scottish Amicable Investment Funds) FINANCIAL STRENGTH - PRUDENTIAL HAS ONE OF THE HIGHEST FREE ASSET RATIOS AMONGST THE LEADING COMPANIES 2002 Free Asset Ratio

6. SIZE TO SCALE - DELIVERING THE COST CHALLENGE £m • £155m of savings realised • Annualised value of £180m • Mumbai office opened 30 May 2003 • £200m of annualised savings by end of 2003 250 216 213 210 200 175 150 130 100 50 10 0 -5 -50 -46 -49 -100 -90 2001 2002 2003 2004 2005 2006 Cost savings Transition costs

7. BRAND - THE STRONGEST FOR LIFE AND PENSIONS • In these turbulent times, our brand strength provides considerable reassurance to customers Spontaneous awareness of life and pension providers Jul-Dec02 Jun-Nov02 Mar-Aug02 Apr-Sep02 May-Oct02 Feb03-Jul03 Nov02-Apr03 Jan03-Jun03 Aug02-Jan03 Sep02-Feb03 Mar03-Aug03 Oct02-Mar03 Dec02-May03 Prudential Norwich Union/ CGNU Scottish Widows AXA Standard Life Legal & General Source:Brand and Satisfaction Monitor (Millward Brown) Base: All respondents (GB adults), six month rolling data. Selected companies shown

8. BRAND - DELIVERS ON THE CUSTOMER EXPERIENCE Progress to date • moved to single customer service business • single view of customer • 650 people in Mumbai • 80% of calls answered in 15 seconds Future Plans From summer 2004, all customers can:- • call 0800 000 000 • speak to a person not a machine • who can deal with 80% of their issues on the call

9. BRAND - ADVERTISING

10. PRODUCT - OUR BETS 18% 16% We’re focusing on Investments (bonds and ISAs), Annuities and large Group Pensions Annuities 14% RP Individual Pensions 12% Investment Bonds Premium Share 10% Group Pensions 8% Other 6% 4% ISAs 2% 0 0% 2% 4% 6% 8% 10% 12% Market Growth Size of circle represents new business market size in APE in 2000 Market growth is estimate for the next 10 years Source: ABI, Prudential

11. One of several potential scenarios ... Distribution in 2000 Distribution in 2005 Other Other 2% 8% 6% Direct Direct to consumer Direct 3% 7% Bancassurers Bancassurers 22% Partnerships 3% DSF DSF 31% 17% Ex-DSF multi-tie 15% Intermediaries Ex-IFA multi-tie IFAs 38% IFA 20% 15% Business to Business 13% EBC EBC DISTRIBUTION - THE FUTURE MARKET LANDSCAPE

12. DISTRIBUTION - B2B SALES PROCESS Sales Processes being refined The old model….. The new model…. Employer Relationship Manager Employer Relationship Manager Presenters B2B Central Planning Unit Marketing customer research Unlocks • Acct mgmt • Noble endeavour • DC pension • DB risk mgmt • Joint marketing plan • Other products DC Pension proposition Unlocks F2F presentation Segmented approach Employer endorsement F2F DM www Tele Pension Mgr Employees Unlocks Employees HR Director/ Finance Director/ Pension Mgr

13. DISTRIBUTION - B2B EMPLOYEE SIGN UP • Multi-touch, multi channel sales process • Innovation - created Automatic Enrolment (average conversion over 75%) • Cost effective CRM managed by new Central Planning Unit • Targeting distribution method based on customer value UNDERSTAND EMPLOYER OBJECTIVES AUTOMATIC ENROLMENT INTRANET/EXTRANET/EMAIL DIRECT MAIL TELEPHONY GROUP PRESENTATIONS F2F Customer Relationship Management

14. ECONOMICS OF B2B DISTRIBUTION • Auto enrolment low cost and highest conversion • F2F needs to be employed where value exists Distribution method Cost per hit Conversion rate Unit cost of acquisition £ % £ Auto enrolment 2.50 75% 3 e-based 1 5% 20 DM 2.50 10% 25 Telephony 15 33% 45 F2F presentation 25 50% 50

15. B2B - RESULTS • Prudential have achieved B2B growth of 23% when our competitors are all down • Stakeholder - CGEY believe that "Prudential’s business solution embodies the best elements of current thinking on Stakeholder Pensions" • 20% of FTSE 100 and FTSE 350 as clients • Half of the Public sector as clients • Our clients have over 5m employees Year on Year growth 40% 30% 20% 10% % movement 0% Prudential -10% -20% Norwich Union -30% Standard Life L&G -40% Note : Prudential is Q3 to Q3, others are Q2 to Q2. Includes DB, DC (MPP), Group AVCs, GPP and Employer Stakeholder

16. B2B - EXPANDING OUR PROPOSITION Employer Employee Multi-Channel/Multi-Media Access Auto Enrolment On-Line planning DM Call Centre E&I Seminars F2F Advice Integration Platform & CRM Prudential Pensions Platform Other Pru Group Platforms 3rd Party Providers

17. PRUDENTIAL UK - STRATEGIC PRIORITIES • Highest free asset ratio • Exceeded our ambitions • Strongest brand • Focused product strategy • Rapidly diversifying distribution capability • Financial strength • Size to scale • Brand • Product • Distribution