#12Q22 Investor Update Expanding access to investing, insurance, and retirement security Prudential#2Prudential Investment Thesis ROCK SOLID DIFFERENTIATED Demonstrated financial strength Thoughtful strategies and business design produce differentiated outcomes DISCIPLINED Positioned for long-term growth TRANSFORMING TO BECOME A HIGHER GROWTH, LESS MARKET SENSITIVE, MORE NIMBLE BUSINESS 14% Adjusted Operating ROE(1) 10% 7% 5-yr Annual Dividends Per Share CAGR (2) 5-yr Adjusted BVPS CAGR (3) (1) Based on 2021 after-tax adjusted operating income and average adjusted book value. Adjusted operating income reflects the reclassification of results of Full Service Retirement from the former Retirement business, which is now the Institutional Retirement Strategies business, to Divested and Run-off Businesses in Corporate & Other. Full Service Retirement results are excluded from adjusted operating income as a result of the operation being held-for-sale prior to its disposition on April 1, 2022. See reconciliation of non-GAAP measures in Appendix for more information. (2) From 2016 to 2021; based on annual dividend per share. (3) From 2016 to 2021; based on adjusted book value. See reconciliation of non-GAAP measures in Appendix for more information. Expanding access to investing, insurance, and retirement security 2#3Complementary Businesses at Scale with Long-Term Growth Potential Earnings Contribution (1) International Businesses $5.9 41% billion PGIM 15% U.S. Businesses 44% Key Statistics Revenues(2): Adjusted Book Value Per Share(3): Employees (4): Adjusted Dividend Yield (5): $61B $104.19 Approx. 40,000 Note: Prior periods restated for reclassification of results of Full Service Retirement from the former Retirement business to Divested and Run-off Businesses in Corporate & Other. (1) Based on last twelve months of pre-tax adjusted operating income through 2Q22. Pie chart percentages exclude Corporate & Other operations loss of $1,574 million. See reconciliation of non-GAAP measures in Appendix for more information. (2) Based on last twelve months of revenue on a pre-tax adjusted operating income basis through 2Q22. (3) As of June 30, 2022. See reconciliation of non-GAAP measures in Appendix for more information. (4) As of December 31, 2021. (5) Based on 2Q22 annualized dividend per share divided by adjusted book value per share. Expanding access to investing, insurance, and retirement security 5% 3#4Executing on Plans to Reposition the Business • • Divestitures Acquisitions Full Service Retirement business (1) • Programmatic acquisitions and investments in asset PALAC traditional Variable Annuity block(1) management and emerging markets: Alexforbes (2) Business Investment Partnership with Mercado Libre to sell Life and A&H products Expanding FlexGuard suite of products Reducing market sensitivity and investing in businesses to support higher growth (1) 22 Completed sales of the Full Service Retirement business and the PALAC traditional Variable Annuity block in April 2022. (2) Completed acquisition of 15% strategic minority interest of Alexforbes in South Africa in 2Q22 and launched a public tender offer to increase stake up to 33%. Expanding access to investing, insurance, and retirement security 4#5Expecting $750 Million of Cost Savings One Year Ahead of Target ($ in millions) 2023 Target $50 $400 $635 $725 Run-Rate Savings 2019 2020 2021 2Q22 $750 Reducing costs while enhancing employee and customer experience Note: Realized cost savings of $175 million in 2Q22, for a total of $345 million year-to-date. Expanding access to investing, insurance, and retirement security 5#6Rock Solid Balance Sheet Provides Financial Flexibility Maintain robust balance sheet position • Well-diversified investment portfolio. • Capital continues to support AA rating level as of June 30, 2022 Highly liquid assets of $7.1 billion (1) L Continue investment in businesses and provide attractive return to shareholders Organic and inorganic growth investments Returned over $800 million in 2Q22(2) and $6 billion since 1Q21 Creating sustainable, profitable growth and shareholder returns (1) Highly liquid assets predominantly include cash, short-term investments, U.S. Treasury securities, obligations of other U.S. government authorities and agencies, and/or foreign government bonds. (2) Capital returned to shareholders in the second quarter of $832 million includes share repurchases of $375 million and dividends of $457 million. Expanding access to investing, insurance, and retirement security#7Continued Commitment to Long-Term Sustainability ENVIRONMENTAL 2050 Net Zero emissions across primary global operations expands and accelerates climate actions Thermal Coal Restriction (2) on new direct investments in companies that derive 25% or more of revenues from thermal coal SOCIAL $1B Invested(1) by The Prudential Foundation works to eliminate barriers for underserved and underrepresented populations $1B in AUM for impact investment portfolio makes Prudential one of the first institutional investors to reach this milestone GOVERNANCE 82% of Independent Directors are diverse which enhances collaboration and results in varied points of view Diversity Modifier for '21-'23 performance period ensures transparency and accountability toward I&D performance targets Fortune® Magazine's World's Most Admired CompaniesⓇ 2022 List (3) for 9 consecutive years Ethisphere 2022 World's Most Ethical Companies® List(4) for 8 consecutive years Barron's 2022 100 Most Sustainable Companies in America List for 5 consecutive years FTSE4GOOD Index Series for 12 consecutive years (1) First grant in 1978. (2) Exceptions may apply for issuers with a low carbon transition strategy and green bonds of restricted issuers. (3) As of February 2022. From Fortune. 2022 Fortune Media IP Limited All rights reserved. Used under license. FortuneⓇ and "The World's Most Admired CompaniesⓇ" are registered trademarks of Fortune Media IP Limited and are used under license. Fortune and Fortune Media IP Limited are not affiliated with, and do not endorse products or services of, Prudential Financial. (4) As of February 2022. "Ethisphere" names and marks are registered trademarks of Ethisphere LLC. Expanding access to investing, insurance, and retirement security 7#8Prudential ROCK SOLID 11111 Demonstrated financial strength Expanding access to investing, insurance, and retirement security Prudential#9Robust Approach to Capital & Liquidity Management Financial Strength "AA" standards for capital Liquidity Significant resources available Risk Appetite Framework Capitalized to remain competitive under stress scenarios Expanding access to investing, insurance, and retirement security 9#10Demonstrated Financial Strength Capital Position Sources of Funding • Parent company liquid assets above $3 to $5 billion liquidity target range Parent company highly liquid assets of $7.1 billion (1) Free cash flow(2) ~65% of earnings over time PICA RBC ratio > 400% Japan solvency margin ratios > 700% Resource Sustainability-Linked Credit Facility Off-Balance Sheet Resources Capacity $4.0 billion Maturity Date $1.5 billion July 2026 November 2023 May 2030 Contingent Capital $1.5 billion Prudential Holdings of Japan Facility ¥100 billion September 2024 As of June 30, 2022. (1) (2) Highly liquid assets predominantly include cash, short-term investments, U.S. Treasury securities, obligations of other U.S. government authorities and agencies, and/or foreign government bonds. Management view of free cash flow as a percentage of after-tax adjusted operating income includes dividends and returns of capital, net receipts from capital related intercompany loans, capital contributions to subsidiaries, and adjustments for M&A funding. Percentage is not intended to report results over any given time period. Expanding access to investing, insurance, and retirement security 10 10#11Preserving Balance Sheet Strength, as We Have Done for 145+ Years Stress Parameters Equity Market Decline Pandemic Insurance Shock Interest Rate Shock Credit Shock Our Toolbox Disciplined ALM and hedging On balance sheet capital capacity Off-balance sheet resources - Credit facilities Contingent capital Shift in our product mix Ability to adjust product pricing Reinsurance Prudent management Outcomes Maintain appropriate and competitive regulatory capital levels at insurance companies Maintain adequate cash position at parent company Relatively resilient to equity market and interest rates declines Highly effective variable annuity hedging program Currency Shock Expanding access to investing, insurance, and retirement security 11#12Balanced Approach to Capital Allocation 1. Maintain Strong Capital Position Shareholder Distributions ($ millions) 2. Organic Growth at Attractive Returns $4,321 $4,144 $3,245 $3,026 $2,500 $2,550 $2,500 3. Sustainable and Growing Dividends $2,269 $2,000 $1,500 $500 $1,250 $1,669 4. Acquisitions 5. Share Repurchases Expanding access to investing, insurance, and retirement security $750 $1,245 $1,300 $1,526 $1,644 $1,769 $1,821 $919 2016 2017 2018 2019 2020 2021 YTD22 ■Dividends ■Share Repurchases 12#13Double-Digit Dividend Growth Supported by Strong Earnings and Cash Flow Coverage ($ per share) Annual Dividends $1.15 $0.58 $0.70 $1.45 $4.60 $4.40 $4.00 17% $3.60 CAGR $3.00 $2.80 $2.44 $2.17 $1.60 $1.73 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 (1) Based on annual dividend per share divided by annual after-tax adjusted operating income per share. See reconciliation of non-GAAP measures in Appendix for more information. Expanding access to investing, insurance, and retirement security 32% 2021 Dividend Payout Ratio(1) 13#14Prudential DIFFERENTIATED Thoughtful strategies and business design produce differentiated outcomes Expanding access to investing, insurance, and retirement security Prudential#15PGIM A Leading Global Investment Manager Across a Broad Range of Private and Public Asset Classes Earnings Contribution (1) ($ millions) PGIM $1,071 15% Business Highlights: • Diverse offering with scale - Attractive asset classes, client segments, and worldwide geographic presence • Proven ability to capture industry flows and . market share while preserving fee levels. • Alignment of incentive - Pay for performance model Note: See Appendix for sources of rankings. (1) Based on last twelve months of pre-tax adjusted operating income through 2Q22 excluding Corporate & Other operations. Expanding access to investing, insurance, and retirement security Stable earnings, strong operating margin, and sustained cash flows to PFI 15#16PGIM Strong Investment Performance Across Attractive Asset Classes Leads to Significant Organic Growth Percentage of PGIM AUM (1) Outperforming Benchmark Successful History with 18 out of 19 Years of Positive Third-Party Net Flows ($ billions) 83% 84% 77% 3 Years 5 Years 6/30/2022 (2) 10 Years 0.5 9.8 11.0 11.0 10.8 7.1 2007 2008 36.5 30.0 23.8 22.6 21.9 20.1 20.2 15.6 13.7 5.5 5.7 (0.8) 11.0 (4.5) 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 YTD22 (1) Represents PGIM's benchmarked AUM (75% of total third-party AUM is benchmarked over 3 years, 66% over 5 years, and 44% over 10 years). This calculation does not include non-benchmarked assets (including general account assets and assets not managed by PGIM). Returns are calculated gross of investment management fees, which would reduce an investor's net return. Excess performance is based on all actively managed Fixed Income, Equity, and Real Estate AUM for Jennison Associates, PGIM Fixed Income, PGIM Quantitative Solutions, PGIM Real Estate, PGIM Private Capital, PGIM Global Partners, and PGIM Real Estate Finance. (2) PGIM calculations as of June 30, 2022 for $724 billion of third-party AUM managed against public benchmarks. Past performance is not a guarantee or reliable indicator of future results. All investments involve risk, including the possible loss of capital. Performance is defined as outperformance (gross of fees) relative to each individual strategy's respective benchmark(s). Expanding access to investing, insurance, and retirement security 16#17International Businesses Highly Productive, Elite Proprietary Distribution and Expanding Presence in Growth Markets Earnings Contribution (1) $3,072 ($ millions) International Businesses 41% Business Highlights: Best in class, profitable Japanese franchise consistently maintaining market leadership position Continuing rotation from mature to developing markets with greater growth prospects and favorable demographic trends Synergies with PGIM's investment expertise Stable earnings, high returns, and sustained cash flows to PFI Note: See Appendix for earnings by business. (1) Based on last twelve months of pre-tax adjusted operating income through 2Q22 excluding Corporate & Other operations. Expanding access to investing, insurance, and retirement security 17#18International Businesses Attractive Mix of Developed and Emerging Markets Provide Long-term Growth . Developed: Japan Highly productive distribution system; world class captive agents, complemented by third-party channels. . · Aging population provides opportunity for expanding product solutions • Wealthy households with significant investable assets • Expanding access to investing, insurance, and retirement security Emerging Markets Expanding economies and rising affluent and middle class: Latin America, China, Southeast Asia, Africa Low insurance penetration with growing demand for protection and savings products Thoughtful ownership approaches and business models tailored to local market dynamics and opportunities 18#19U.S. Businesses Diversified Business Portfolio with Expanding Market Opportunities Earnings Contribution (1) ($ millions) U.S. Businesses 44% $3,298 • • Business Highlights: Diversified customer base Broad set of complementary solutions. Strong multi-channel distribution Synergies with PGIM's investment expertise Scaled and diversified businesses with improving risk profile Note: See Appendix for earnings by business. Prior periods restated for reclassification of results of Full Service Retirement from the former Retirement business to Divested and Run-off Businesses in Corporate & Other. (1) Based on last twelve months of pre-tax adjusted operating income through 2Q22 excluding Corporate & Other operations. U.S. Businesses include Retirement Strategies, Group Insurance, Individual Life, and Assurance IQ. Expanding access to investing, insurance, and retirement security 19#20U.S. Businesses Broad, End-to-End Engagement Model We Can Meet Customers... Institutions Individuals How and Where They Want Individuals within Institutions Digital Hybrid In-Person Expanding access to investing, insurance, and retirement security 20 20#21Complementary Businesses Amplify Growth and Mitigate Risk • • Competitive Synergies PGIM is the "investment engine" of Prudential generates higher returning assets that enhance the competitiveness of U.S. and International Businesses U.S. and International Businesses significantly increase PGIM's scale • Individual businesses enhance Workplace value proposition Global Intelligence Expanding access to investing, insurance, and retirement security • Risk Mitigation Synergies Diversification of earnings, capital, and risks Natural hedging - Mortality/Longevity Offsetting equity exposure across businesses Idea Sharing Common Purpose 21#22Prudential DISCIPLINED 11111 Positioned for long-term growth Expanding access to investing, insurance, and retirement security Prudential#23PGIM Earnings and Margin Continue to Expand Earnings ($ billions) Pre-tax AOI $1.0 2017 13.8% CAGR $1.6 2021 Expanding access to investing, insurance, and retirement security Growth opportunities from: . Alternatives • International . Retail Margin expansion from positive operating leverage 23 23#24PGIM Broad Geographic Presence in Key Markets With 1,300+ investment professionals located in 39 offices across 17 countries, our experts are present in key financial centers around the world. LETTERKENNEY DUBLIN AMSTERDAM TORONTO LONDON PARIS FRANKFURT MUNICH MINNEAPOLIS CHICAGO BOSTON ZÜRICH MILAN SAN FRANCISCO MEMPHIS NEW YORK NEWARK/ MADISON MADRID LOS ANGELES DALLAS ATLANTA MIAMI ORLANDO MEXICO CITY AMERICAS $921 EMEA $109 ASIA PACIFIC $243 Billion in AUM Billion in AUM Billion in AUM Data as of June 30, 2022. Expanding access to investing, insurance, and retirement security SHANGHAI SEOUL TOKYO ΤΑΙΡΕΙ HONG KONG MUMBAI SINGAPORE SYDNEY 24 24#25PGIM Growth in Alternatives Market Opportunity(1) PGIM's Positioning ($ trillions) $13.3 Alternatives (3) $269B 12% CAGR $23.2 (2) 2021 2026E Top 3 in Real Estate (3) $206B Investments for Future Growth Acquired Montana Capital Partners, a $3.2B AUM Private Equity Secondaries manager Building out private credit capabilities (e.g., mezzanine, direct lending) Further scaling and broadening PGIM Fixed Income's suite of hedge funds Private Credit(3) $96B ⚫ Driving growth of QMA's global macro and managed futures strategies (1) Alternatives AUM from Alternatives in 2022 report, published 2022. Includes private equity, private debt, hedge funds, real estate, infrastructure, and natural resources. (2) 2021 figure is annualized based on data to March 2021. 2022-2026 are Preqin's forecasted figures. (3) Data reflects AUM as of June 30, 2022. Alternatives AUM represents hedge fund, mezzanine and other private credit, real asset, and infrastructure products across all PGIM businesses. Real Estate represents gross AUM and AUA of $161B and $46B, respectively; net AUM is $136B. Note: See Appendix for sources of rankings. Expanding access to investing, insurance, and retirement security 25 25#26PGIM Significant Opportunity Outside the U.S. Japan ~$213B in Assets Europe ~$75B in Assets Emerging Markets • Top 3 foreign manager of Japanese Institutional assets . Increased appetite for non-Japan assets • • AUM from European clients grew by ~30% over the last 5 years Significantly increased sales and marketing footprint in Europe across institutional and retail channels ~$36B in Assets • China: $17B AUM JV up from $5B in 2010; deepening local coverage of top institutions Leading manager of active EM strategies across public debt and equities Note: See Appendix for sources of rankings. Data as of June 30, 2022, unless otherwise stated. Expanding access to investing, insurance, and retirement security 26 26#27PGIM Momentum in U.S. Retail Market Opportunity(1) 54% $23 trillion 20% 26% Passive MFs Passive ETFs Active MFS and ETFs PGIM's Positioning • 13 consecutive years of positive mutual fund net flows(2) • ⚫ Institutional approach to serving retail intermediaries Leading Fixed Income franchise meets investors' demand for yield Investments for Future Growth Continue to build on strategic partner status (e.g., Edward Jones) • Scale up suite of active ETFs and Retail Separate Accounts Note: See Appendix for sources of rankings. (1) Morningstar data as of June 30, 2022 (excludes money market funds and fund of funds). (2) Based on net flows for long-term mutual funds as of year-to-date December 31, 2021. Expanding access to investing, insurance, and retirement security 27 22#28International Businesses Earnings Expansion with Stable Margins Earnings ($ billions) Pre-tax AOI $2.9 2017 3.7% CAGR Note: See Appendix for earnings by business. $3.4 • 2021 Expanding access to investing, insurance, and retirement security Growth opportunities from: . Continuing market leadership in Japan Expanding our presence in emerging markets 888 28#29International Businesses Well Positioned for Continued Outperformance in Japan Market Penetration Beyond Tokyo Highly Skilled Distribution Expanding access to investing, insurance, and retirement security Adept at Product Evolution 29 29#30International Businesses Leverage our Partnerships with Market-Leading Companies for Future Growth in Emerging Markets Latin America AFP Latin America China India Itaú HABITAT Seguridad y Confianza FOSUN 复星 Piramal Indonesia CTCORP Ghana enterprise GROUP Kenya ICEA LION GROUP Significant Partnerships Largest private sector bank in Brazil and a leading financial institution in Latin America Pension provider with business across Chile, Peru, and Colombia Innovation-driven consumer group creating high-quality products and services in Health, Happiness, Wealth, and Intelligent Manufacturing sectors Global business conglomerate with diverse interests in Pharma, Financial Services, and Real Estate Indonesian holding company with businesses across several industries, including financial services Financial services provider with multiline presence, including life, general insurance, and pensions Financial services provider with multiline presence, including life, general insurance, pensions, and asset management Market Leadership Over 50 million retail clients #1 in Chile by AUM(1) #2 in Latin America by AUM (2) Global ecosystem fulfilling the needs of one billion families Offices in over 30 countries and a global brand presence in more than 100 markets Over 200 million customers and users #1 in life insurance (3) #1 in general insurance (3) #1 in pensions (4) #3 in life insurance (5) #1 in pension administration (6) (1) Superintendencia de Pensiones (Chilean Pension Regulator). As of June 30, 2022. (2) Superintendencia de Pensiones (Pension Regulator) of each country. As of June 30, 2022. (3) Ghanaian National Insurance Commission. Based on gross premiums as of December 31, 2021. Expanding access to investing, insurance, and retirement security (4) (5) National Pensions Regulatory Authority (NPRA). Based on AUM as of year-end 2021. Kenya Insurance Regulatory Authority (IRA). As of December 31, 2020. (6) Kenya Insurance Regulatory Authority (IRA). As of December 31, 2020. 30#31U.S. Businesses Executing Against Three Strategic Pillars Earnings ($ billions) Pre-tax AOI $3.3 2017 3.9% CAGR $3.9 2021 Growth opportunities from: • • Strengthening our foundational businesses Transforming capabilities and efficiency Expanding addressable markets to accelerate growth Note: See Appendix for earnings by business. Prior periods restated for reclassification of results of Full Service Retirement from the former Retirement business to Divested and Run-off Businesses in Corporate & Other. Expanding access to investing, insurance, and retirement security 31#32U.S. Businesses Strengthening Our Foundational Businesses Retirement Strategies • Grow profitably through innovation and expansion into adjacent markets and products for both individuals and institutions Deliver investment strategies and income solutions for growth and protection that create stakeholder value across all economic environments Group Insurance . • Expand in target customer segments and enhance voluntary platform and products Deepen employer and participant relationships with Financial Wellness programs • Individual Life . Expand in target distribution and customer segments Continue growth of simplified protection solutions that expand our addressable market Expanding access to investing, insurance, and retirement security 32 32#33U.S. Businesses Transforming Capabilities and Efficiency Changing the way we work to improve the customer experience... Call Center Optimization Process Automation Technology Enablement (Digital, Mobile) ...resulting in ~$750 million of annual run-rate cost savings expected by year-end 2022, one year ahead of target(1) (1) Run-rate at the end of the year. Earnings impact includes U.S. Businesses, PGIM, and Corporate & Other and is subject to timing. Original target was by year-end 2023. Expanding access to investing, insurance, and retirement security 33#34U.S. Businesses Expanding Addressable Markets to Accelerate Growth Opportunity to Accelerate Growth in Mass Affluent and Middle Market Households 84M 28M Mass Market $2.1T Assets Middle Market $6.4T Assets Significant opportunity to expand and grow: • Underserved markets with significant gaps for protection and retirement How we make it happen: • • Simplified and affordable products Alternative distribution channels 12M Mass Affluent $12.1T Assets 5M • Affluent $34.4T Assets Sources: Cerulli 2021 Retail Asset Management Report; Prudential 2018 Financial Wellness Survey. Expanding access to investing, insurance, and retirement security - Workplace Financial - Wellness Prudential Advisors Hybrid Advisors Assurance IQ 34#35Prudential Investment Thesis ROCK SOLID DIFFERENTIATED Demonstrated financial strength Thoughtful strategies and business design produce differentiated outcomes DISCIPLINED Positioned for long-term growth TRANSFORMING TO BECOME A HIGHER GROWTH, LESS MARKET SENSITIVE, MORE NIMBLE BUSINESS 14% Adjusted Operating ROE(1) 10% 7% 5-yr Annual Dividends Per Share CAGR (2) 5-yr Adjusted BVPS CAGR (3) (1) Based on 2021 after-tax adjusted operating income and average adjusted book value. Adjusted operating income reflects the reclassification of results of Full Service Retirement from the former Retirement business, which is now the Institutional Retirement Strategies business, to Divested and Run-off Businesses in Corporate & Other. Full Service Retirement results are excluded from adjusted operating income as a result of the operation being held-for-sale prior to its disposition on April 1, 2022. See reconciliation of non-GAAP measures in Appendix for more information. (2) From 2016 to 2021; based on annual dividend per share. (3) From 2016 to 2021; based on adjusted book value. See reconciliation of non-GAAP measures in Appendix for more information. Expanding access to investing, insurance, and retirement security 35 55#36Prudential APPENDIX Expanding access to investing, insurance, and retirement security Prudential#37Sources of Rankings PGIM Business Market Position Top 3 Real Estate Manager Top 3 Foreign Manager of Japanese Institutional Assets 13 consecutive years of positive mutual fund net flows Source Pensions & Investments Top Real Estate Managers list, published October 4, 2021. AUM as of June 30, 2021. PGIM Japan, based on the total AUM for discretionary managed accounts as of June 30, 2021 provided by R&I's Nenkin Joho #871. Strategic Insight/Simfund as of December 31, 2021. Ranking only references net flows for long-term mutual funds and excludes ETF and money markets. Results may differ from PGIM Investments (Strategic Insight/Simfund excludes Day One and private funds). Expanding access to investing, insurance, and retirement security 37#38Forward-Looking Statements Certain of the statements included in this presentation, including those relating to Prudential Financial, Inc.'s and its subsidiaries' financial strength, strategy and long-term growth prospects, ability to manage risk associated with equity market decline, pandemic insurance shock, interest rate shock, credit shock or currency shock, capital allocation strategy (including the payment of dividends, acquisitions, and repurchase of shares), the transaction involving Alexforbes, expected cost savings, and our goals related to long- term sustainability, constitute forward looking statements within the meaning of the U.S. Private Securities Litigation Reform Act of 1995. Words such as "expects," "believes," "anticipates," "includes,” “plans,” “assumes,” “estimates," "projects," "intends," "should," "will," "shall," or variations of such words are generally part of forward-looking statements. Forward-looking statements are made based on management's current expectations and beliefs concerning future developments and their potential effects upon Prudential Financial, Inc. and its subsidiaries. Prudential Financial, Inc.'s actual results may differ, possibly materially, from expectations or estimates reflected in such forward- looking statements. Certain important factors that could cause actual results to differ, possibly materially, from expectations or estimates reflected in such forward-looking statements can be found in the "Risk Factors" and "Forward-Looking Statements" sections included in Prudential Financial, Inc.'s Annual Reports on Form 10-K and Quarterly Reports on Form 10-Q. Our financial strength, strategy and long-term growth prospects, ability to manage risk associated with equity market decline, pandemic insurance shock, interest rate shock, credit shock or currency shock, capital allocation strategy (including the payment of dividends, acquisitions, and repurchase of shares), the transaction involving Alexforbes, expected cost savings, and our goals related to long-term sustainability, are subject to the risk that we will be unable to execute our strategy because of economic, market, or competitive conditions or other factors. Prudential Financial, Inc. does not undertake to update any particular forward-looking statement included in this presentation. Prudential Financial, Inc. of the United States is not affiliated with Prudential plc which is headquartered in the United Kingdom. Expanding access to investing, insurance, and retirement security 38 88#39Non-GAAP Measures This presentation includes references to adjusted operating income, adjusted book value, and adjusted operating return on equity, which is based on adjusted operating income and adjusted book value. Consolidated adjusted operating income, adjusted book value, and adjusted operating return on equity are not calculated based on accounting principles generally accepted in the United States of America (GAAP). For additional information about adjusted operating income, adjusted book value, and adjusted operating return on equity and the comparable GAAP measures, including reconciliations between the comparable measures, please refer to our quarterly results news releases, which are available on our website at www.investor.prudential.com. Reconciliations are also included as part of this presentation. We believe that our use of these non-GAAP measures helps investors understand and evaluate the Company's performance and financial position. The presentation of adjusted operating income as we measure it for management purposes enhances the understanding of the results of operations by highlighting the results from ongoing operations and the underlying profitability of our businesses. Trends in the underlying profitability of our businesses can be more clearly identified without the fluctuating effects of the items described below. Adjusted book value augments the understanding of our financial position by providing a measure of net worth that is primarily attributable to our business operations separate from the portion that is affected by capital and currency market conditions, and by isolating the accounting impact associated with insurance liabilities that are generally not marked to market and the supporting investments that are marked to market through accumulated other comprehensive income under GAAP. However, these non-GAAP measures are not substitutes for income and equity determined in accordance with GAAP, and the adjustments made to derive these measures are important to an understanding of our overall results of operations and financial position. Adjusted operating income is a non-GAAP measure used by the Company to evaluate segment performance and to allocate resources. Adjusted operating income excludes "Realized investment gains (losses), net," as adjusted, and related charges and adjustments. A significant element of realized investment gains and losses are impairments and credit-related and interest rate-related gains and losses. Impairments and losses from sales of credit-impaired securities, the timing of which depends largely on market credit cycles, can vary considerably across periods. The timing of other sales that would result in gains or losses, such as interest rate-related gains or losses, is largely subject to our discretion and influenced by market opportunities as well as our tax and capital profile. Expanding access to investing, insurance, and retirement security 39 99#40Non-GAAP Measures (Continued) Realized investment gains (losses) within certain businesses for which such gains (losses) are a principal source of earnings, and those associated with terminating hedges of foreign currency earnings and current period yield adjustments are included in adjusted operating income. Adjusted operating income generally excludes realized investment gains and losses from products that contain embedded derivatives, and from associated derivative portfolios that are part of an asset-liability management program related to the risk of those products. Adjusted operating income also excludes gains and losses from changes in value of certain assets and liabilities relating to foreign currency exchange movements that have been economically hedged or considered part of our capital funding strategies for our international subsidiaries, as well as gains and losses on certain investments that are designated as trading. Adjusted operating income also excludes investment gains and losses on assets supporting experience-rated contractholder liabilities and changes in experience-rated contractholder liabilities due to asset value changes, because these recorded changes in asset and liability values are expected to ultimately accrue to contractholders. Additionally, adjusted operating income excludes the changes in fair value of equity securities that are recorded in net income. Adjusted operating income excludes market experience updates, reflecting the immediate impacts in current period results from changes in current market conditions on estimates of profitability, which we believe enhances the understanding of underlying performance trends. Adjusted operating income also excludes the results of Divested and Run-off Businesses, which are not relevant to our ongoing operations and discontinued operations and earnings attributable to noncontrolling interests, each of which is presented as a separate component of net income under GAAP. Additionally, adjusted operating income excludes other items, such as certain components of the consideration for acquisitions, which are recognized as compensation expense over the requisite service periods, as well as changes in the fair value of contingent consideration. Earnings attributable to noncontrolling interests is presented as a separate component of net income under GAAP and excluded from adjusted operating income. The tax effect associated with pre-tax adjusted operating income is based on applicable IRS and foreign tax regulations inclusive of pertinent adjustments. Adjusted operating income does not equate to “Net income" as determined in accordance with U.S. GAAP. Adjusted operating income is not a substitute for income determined in accordance with U.S. GAAP, and our definition of adjusted operating income may differ from that used by other companies. The items above are important to an understanding of our overall results of operations. However, we believe that the presentation of adjusted operating income as we measure it for management purposes enhances the understanding of our results of operations by highlighting the results from ongoing operations and the underlying profitability of our businesses. Trends in the underlying profitability of our businesses can be more clearly identified without the fluctuating effects of the items described above. Adjusted book value is calculated as total equity (GAAP book value) excluding accumulated other comprehensive income (loss) and the cumulative effect of foreign currency exchange rate remeasurements and currency translation adjustments corresponding to realized investment gains and losses. These items are excluded in order to highlight the book value attributable to our core business operations separate from the portion attributable to external and potentially volatile capital and currency market conditions. Expanding access to investing, insurance, and retirement security 40 40#41Earnings by Business ($ millions) Full Year 2021 2017 (1) Twelve Months Ended 6/30/2022 Adjusted operating income (loss) before income taxes PGIM $ 1,643 $ 979 $ 1,071 U.S. Businesses: Institutional Retirement Strategies Individual Retirement Strategies Group Insurance Individual Life Assurance IQ Total U.S. Businesses International Businesses: Life Planner Gibraltar Life & Other 2,178 1,063 2,080 1,901 2,198 2,762 (455) 253 (398) 393 (191) (983) (142) (163) 3,875 3,323 3,298 1,774 1,224 1,724 1,616 1,705 1,348 Total International Businesses 3,390 2,929 3,072 Corporate & Other (1,607) (1,578) (1,574) Total adjusted operating income before income taxes 7,301 5,653 5,867 Income taxes, applicable to adjusted operating income After-tax adjusted operating income 1,529 1,461 1,271 $ 5,772 $ 4,192 $ 4,596 Note: Prior periods restated for reclassification of results of Full Service Retirement. Adjusted operating income reflects the reclassification of results of Full Service Retirement from the former Retirement business, which is now the Institutional Retirement Strategies business, to Divested and Run-off Businesses in Corporate & Other. Full Service Retirement results are excluded from adjusted operating income as a result of the operation being held-for-sale prior to its disposition on April 1, 2022. (1) Prior period amounts have been updated to conform to current period presentation. Expanding access to investing, insurance, and retirement security 41#42Less: Earnings attributable to noncontrolling interests Reconciliations between Adjusted Operating Income and the Comparable GAAP Measure ($ millions, except per share data) Net income attributable to Prudential Financial, Inc. Income attributable to noncontrolling interests Net income 2021 $ 7,724 70 7,794 70 Full Year 2017 (1) Twelve Months Ended 6/30/2022 $ 7,863 111 7,974 $ 2,142 49 2,191 111 49 Income attributable to Prudential Financial, Inc. 7,724 7,863 2,142 Less: Equity in earnings of operating joint ventures, net of taxes and earnings attributable to noncontrolling interests Income (after-tax) before equity in earnings of operating joint ventures 17 7,707 (62) 7,925 (55) 2,197 Less: Reconciling Items: Realized investment gains (losses), net, and related charges and adjustments Market experience updates Divested and Run-off Businesses: Closed Block division Other Divested and Run-off Businesses 1,627 47 750 (3,496) 746 140 45 111 716 709 435 Equity in earnings of operating joint ventures and earnings attributable to noncontrolling interests Other adjustments (2) (41) 33 8 (1,112) (1,103) Total reconciling items, before income taxes Less: Income taxes, not applicable to adjusted operating income Total reconciling items, after income taxes After-tax adjusted operating income Income taxes, applicable to adjusted operating income Adjusted operating income before income taxes 2,080 834 (3,299) 145 (2,899) (900) 1,935 3,733 (2,399) 5,772 4,192 4,596 1,529 1,461 1,271 $ 7,301 $ 5,653 $ 5,867 After-tax adjusted operating income per share Net Income Return on Equity Adjusted Operating Return on Equity (3) $ 14.58 $ 9.54 12.4% 14.3% 16.0% 11.6% Note: Prior periods restated for reclassification of results of Full Service Retirement. Adjusted operating income reflects the reclassification of results of Full Service Retirement from the former Retirement business, which is now the Institutional Retirement Strategies business, to Divested and Run-off Businesses in Corporate & Other. Full Service Retirement results are excluded from adjusted operating income as a result of the operation being held-for-sale prior to its disposition on April 1, 2022. (1) Prior period amounts have been updated to conform to current period presentation. (2) Represents adjustments not included in the above reconciling items, including a goodwill impairment that resulted in a charge of $837 million after-tax, $1,060 million pre-tax, in fourth quarter of 2021 related to Assurance IQ. Also includes certain components of consideration for business acquisitions, which are recognized as compensation expense over the requisite service periods, as well as changes in the fair value of the associated contingent consideration. (3) Represents adjusted operating income after-tax, annualized for interim periods, divided by average Prudential Financial, Inc. equity excluding accumulated other comprehensive income and adjusted to remove amounts included for foreign currency exchange rate remeasurement. Expanding access to investing, insurance, and retirement security 42#43Reconciliations between Adjusted Book Value and the Comparable GAAP Measure ($ millions, except per share data) December 31, June 30, 2021 2016 2022 GAAP book value Less: Accumulated other comprehensive income (AOCI) GAAP book value excluding AOCI $ 61,876 46,030 $ 28,235 21,324 14,621 (10,178) 40,552 31,409 38,413 Less: Cumulative effect of remeasurement of foreign currency Adjusted book value (1,164) (3,199) (962) $ 41,716 $ 34,608 $ 39,375 Number of diluted shares GAAP book value per Common share - diluted (1) GAAP book value excluding AOCI per Common share - - diluted Adjusted book value per Common share - diluted 383.7 436.2 377.9 161.26 $ 105.69 $ 108.72 $ SASASA 79.33 105.28 72.01 $ $ 74.72 101.65 104.19 Note: 2016 amounts have been revised resulting from the elimination of Gibraltar Life's one-month reporting lag. (1) Book value per share of Common Stock, including accumulated other comprehensive income, for the period ended December 31, 2016 includes a $500 million increase in equity and a 5.75 million increase in diluted shares, reflecting the dilutive impact of exchangeable surplus notes when book value per share is greater than $86.92. The $500 million of exchangeable surplus notes were converted into 6.2 million shares of Common Stock in the third quarter of 2019. Expanding access to investing, insurance, and retirement security 43