Earnings per share. Full year dividend. Return on equity p p 19.6%

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3 Earnings per share 22.20p Return on equity 19.6% Full year dividend 14.35p

4 Who New Position Background

5 Net release from operations 1,411m Adjusted operating profit 1,628m Profit after tax 1,265m Earnings per share p IFRS return on equity % Full year dividend 14.35p

6 NET RELEASE FROM OPERATIONS ( m) ,002 1,104 1,256 1,411 DIVIDEND ( m) NET RELEASE FROM OPERATIONS RETAINED ( m) DIVIDEND COVERAGE DIVIDEND PER SHARE (p) RETURN ON EQUITY (%) EARNINGS PER SHARE (p) BOOK VALUE PER SHARE (p)

7 Growth drivers Ageing demographics Globalisation of asset markets 2016 achievements Creating real assets Welfare reforms Technological innovation Today s capital

8 Growing net release from operations ( m) Consistent earnings per share growth 1 (p) 865 1,002 1,104 1,256 1, Increasing dividend per share (p) Increasing return on equity 1 (%)

9 Net release from operations 1,411m Operating profit 1,628m Profit before tax 1,582m

10 YoY (%) ASSETS & PREMIUMS CASH & EARNINGS CAPITAL

11 Operating profit from divisions ( m) 1,277 1,329 1,483 1,702 1,902 17% 13% 3% 5% LGR 43% LGIM LGC LGI General Insurance % Savings DIVISION YoY (%) Legal & General Retirement (LGR) Legal & General Investment Management (LGIM) Legal & General Capital (LGC) Legal & General Insurance (LGI) General Insurance (GI) Savings (7) Operating profit from divisions 1,902 1,702 12

12 LGIM AUM growth ( bn) LGR assets growth ( bn) UK & US Insurance premium growth ( bn) Direct Investments ( bn)

13 DIVIDEND 13.40p 14.35p 11.25p 9.30p 7.65p 6.40p 4.74p 5.69p 6.90p 8.35p 9.95p 10.35p 1.66p 1.96p 2.40p 2.90p 3.45p 4.00p

14 FINANCIAL HIGHLIGHTS

15 FINANCIAL HIGHLIGHTS

16 FINANCIAL HIGHLIGHTS LGI US dividend ($m) $63m $69m $76m $83m $91m $100m

17 FINANCIAL HIGHLIGHTS

18 FINANCIAL HIGHLIGHTS

19 Ratio 230% 235% 230% 176% 163% 171% Coverage CAPITAL POSITION 14bn 12bn 13.5bn 14.0bn 14.6bn 12.8bn 13.6bn 13.6bn 8.3bn 7.6bn 8.1bn 5.5bn 5.3bn 5.7bn 10bn 8bn 6bn 4bn 5.9bn 5.9bn 6.3bn 7.3bn 8.3bn 7.9bn 2bn 0bn YE 2015 H YE 2016 YE 2015 H YE 2016 Economic Capital Solvency II

20 2016 bn Comments Operational surplus generation 1.2 New business strain (0.1) Net Surplus Generation 1.1 Dividends paid (0.8) Operating variances 0.2 Market movements (0.3) Total Surplus over year 0.2

21 FY 2016 PVNBP Contribution from New Business Margin % 6, , , ,

22 Operating profit 811m New business sales 8.5bn AUA 54.4bn

23 FINANCIAL HIGHLIGHTS

24 Back book for cash and capital Back book acquisitions UK capital efficient front book Longevity Insurance US pension risk transfer Global reinsurance hub Individual retirement Lifetime mortgage

25 1,277m 591m 327m 378m Internal External

26 Sales m Market share % Q1 15 Q2 15 Q3 15 Q4 15 Q1 16 Q2 16 Q3 16 Q4 16 L&G Others L&G Market Share 29% in

27 INCREASING PROPORTION OF DIRECT INVESTMENTS.. WHILST MAINTAINING OVERALL CREDIT QUALITY & HIGH SECTORAL DIVERSIFICATION BB or below 2016 by Credit Rating 2016 by Sector

28 New direct investments ( m) AUA ( bn) ,211 1, ,140 1, Annuity single premium ( m) Profit Before Tax ( m) 591 3, ,277 5, ,320 2,812 2,417 3,685 1,

29 AUM 894bn Total net flows 31.2bn Operating profit 366m

30 REVENUE GROWTH WITH A STEADY MARGIN m m 49% % Revenue Expenses C:I Ratio 30 FINANCIAL HIGHLIGHTS

31 Solutions AUM ( bn) AFI AUM 1 ( bn) Index AUM ( bn) Real Assets AUM 2 ( bn)

32 UK DB PENSION SOLUTIONS JOURNEY Funding level 63% Equities DGFs Smart Beta DGFs Buy and Maintain Credit Buy-out c. 2.1trn buy-out liabilities Credit Multi-Strat Credit Real Assets Gilts LDI LDI Time MARKET BENCHMARK OUTCOME ORIENTATED SELF SUFFICIENCY INSURANCE

33 DC AUM and AUA growth ( bn) DC client growth Retail AUM ( bn) DC AUM ,493 2,153 2,

34 International AUM Growth ( bn) 46 43bn Other International Assets US Assets US Clients International Net Flows ( bn) 177bn 14.5bn bn Other International Flows US Flows

35 Operating profit 257m DI Profit before tax 94m Total assets 6,193m

36 FINANCIAL HIGHLIGHTS

37 What we do Maximise risk adjusted returns How we achieve this Create new asset classes and business models Provide investment opportunities for the Group Internal Acquire Develop Sell External

38 Acquire Develop Sell

39 Operating Profit LGC total ( m) Total Assets - Direct Investments ( m) , Operating Profit Direct Investments ( m) Net portfolio return Direct Investments (%) % 9.0%

40 Sector Macro theme Scaling up businesses Developing new businesses Housing Infrastructure SME Finance

41 Earnings per share 22.20p Return on equity 19.6% Full year dividend 14.35p

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43 What we are doing onwards Robotics Big Data Platforms Cloud Artificial Intelligence Blockchain

44 Earnings per share (p) Net release from operations ( m) ,002 1,104 1,256 1,

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