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 BLOOMERGROUP CHIEF EXECUTIVEPRUDENTIAL 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

0

5000

10000

15000

20000

25000

1996 1997 1998 1999 2000 2001

UK & Europe US Asia

New business sales by region 1996- 2001

£m

New business sales FY2001

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

0%

1%

2%

3%

4%

5%

6%

7%

8%

9%

Japan Phil India Indo Thai HK Malay Korea Sing TaiwanChina

3.33.5

4.9

5.96.4

6.7 6.97.5

8.0 8.18.6Average GDP growth % 1971-2000

Asia delivers consistently high GDP growth despite several economic crises in last 30 years

Source: UBSW 30 Aug 01

China 1,266

Indonesia 210

Population (millions)

India 1,007

Japan 127

Vietnam 78

Philippines 81

Thailand 63

S. Korea 47

Malaysia 23

Taiwan 22

Hong Kong 7

Singapore 4

0

50

100

150

200

250

300

350

Asia UK US

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

(2000, £bn)

Life Premiums Mutual Funds FUM Retail Bank Deposits

(2000, £bn)

0

1,000

2,000

3,000

4,000

5,000

6,000

Asia UK US

(2000, £bn)

1990-99 Growth (%)

1 Japan11 ROA

7 4 1997-00 Growth (%)

20 Japan14 ROA

17 25 1995-99 Growth (%)

1 Japan10.5%

5 6

0

500

1,000

1,500

2,000

2,500

5,000

Asia UK US

Japan

ROA Japan

Japan

ROA

ROA

Source: Swiss Re; Group Position Assessment; Federal Reserve

LIFE PENETRATION INCREASES AS ECONOMIES DEVELOP: US$10,000 IS INFLECTION POINT

Life Penetration Market GrowthNew Business Premiums, $m Growth

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

S KoreaJapan

Taiwan

Hong Kong

ChinaIndia

Philippines IndonesiaThailand

Vietnam

MalaysiaSingapore

0%

2%

4%

6%

8%

10%

12%

1,000 10,000 100,000

Penetration, 19991

Per Capita GDP2, US$ (log scale)

= $1bn in NB Premiums

LIFE INSURANCE MARKETS IN ASIA

JapanKoreaTaiwanChinaIndiaHong KongSingaporeThailandMalaysiaPhilippinesIndonesiaVietnam

16,4137,9664,564

851

1,375850540354380140

21478

2%11%11%22%20%9%9%

12%11%12%

15%22%

ASIA: OPPORTUNITIES FOR FOREIGN PROVIDERS

Domestic Foreign

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

Indonesia Japan Korea Thailand

88%

98% 98% 95%

12%

2% 2% 5%

Source: Morgan Stanley Research, Aug 01

RFS BALANCES IN DOMESTIC AND FOREIGN COMPANIES

LONG-TERM VISION FOR DEVELOPMENT OF PRESENCE IN ASIA

Geography

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

Distribution Improve efficiency and

effectiveness of current distribution channels

Expand distribution options: – access more customers– give customers choice in

accessing Prudential– maximise “stickiness” and

productivity of each relationship through cross-selling

Products Provide products that continue to

meet customer needs Offer broader range of needs-

based, Retail Financial Services products:

– life and pensions– mutual funds– general insurance– banking

to cement and deepen customer relationship

Target CustomersProfessional/massaffluent segment

ACHIEVE SUSTAINABLE RFS LEADERSHIP WITH LEVELS OF CUSTOMER ACCESS, SHARE OF WALLET, PROFITABILITY, AND SCALE COMPARABLE TO LEADING RETAIL FINANCIAL SERVICES GROUPS

RELATIVE LIFE MARKET POSITION

Market Presences/Licences

No of Markets in Top 5

AIG

Manulife Allianz

Great Eastern NY Life ING

Cathay Life

Aegon CGNU Mass Mutual US Prudential RSA Sun Life

Zurich Axa

4-5

2-3

0-1

1-2 3-6 7-8 9+

6-8Prudential

Source: PCA analysis

PRUDENTIAL’S 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

ASIA: FINANCIAL HIGHLIGHTS

£m

0

50

100

150

200

250

300

350

400

450

1998 1999 2000 2001Singapore Malaysia Hong KongTaiwan Japan Others

83

124

256

434

£m

56

90

153

255

+61%

+70%

+66%

SALES NEW BUSINESS ACHIEVED PROFIT

CAPITAL FLOWS IN ASIA: UPDATE

Net capital flows

(1) 22 7 11

158

76

144

274

Summary (1994 to 2001)

£m

Acquisitions 533

Working capital 264

Repatriations (106)

Net capital 691

Japan and Korea acquisitions

Increased investment in Indonesia and Taiwan

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