4Q 2016 Earnings Conference Call Presentation for Principal Financial Group

1. Principal Financial Group
®
Fourth Quarter 2016 Earnings Call
January 31, 2017

2. A non-GAAP financial measure is a numerical measure of performance,financial position, or
cash flows that includes adjustments from a comparable financial measure presented in
accordance with U.S. GAAP.
The company uses a number of non-GAAP financial measures management believes are useful
to investors because they illustrate the performance of the company’s normal, ongoing
operations which is important in understanding and evaluating the company’s financial
condition and results of operations. While such measures are also consistent with measures
utilized by investors to evaluate performance,they are not, however,a substitute for U.S. GAAP
financial measures.Therefore,the company has provided reconciliations of the non-GAAP
financial measures to the most directly comparable U.S. GAAP financial measure within the
slides. The company adjusts U.S. GAAP financial measures for items not directly related to
ongoing operations. However, it is possible these adjusting items have occurred in the past and
could recur in future reporting periods. Management also uses non-GAAP financial measures
for goal setting, as a basis for determining employee and senior management awards and
compensation, and evaluating performance on a basis comparable to that used by investors
and securities analysts.
The company also uses a variety of other operational measures that do not have U.S. GAAP
counterparts, and therefore do not fit the definition of non-GAAP financial measures. Assets
under management is an example of an operational measure that is not considered a non-
GAAP financial measure.
2 Posted on PFG website: 1/30/2017
Use of Non-GAAP Financial Measures

3. Certain statements made by the company which are not historical facts may be considered forward-looking statements,
including, without limitation, statements as to operating earnings, net income available to common stockholders, net cash
flows, realized and unrealized gains and losses, capital and liquidity positions, sales and earnings trends, and
management’s beliefs, expectations, goals and opinions. The company does not undertake to update these statements,
which are based on a number of assumptions concerning future conditions that may ultimately prove to be inaccurate.
Future events and their effects on the company may not be those anticipated, and actual results may differ materially
from the results anticipated in these forward-looking statements. The risks, uncertainties and factors that could cause or
contribute to such material differences are discussed in the company’s annual report on Form 10-K for the year ended Dec.
31, 2015, and in the company’s quarterly report on Form 10-Q for the quarter ended Sep. 30, 2016, filed by the company
with the U.S. Securities and Exchange Commission, as updated or supplemented from time to time in subsequent filings.
These risks and uncertainties include, without limitation: adverse capital and credit market conditions may significantly
affect the company’s ability to meet liquidity needs, access to capital and cost of capital; conditions in the global capital
markets and the economy generally; volatility or declines in the equity, bond or real estate markets; changes in interest
rates or credit spreads or a sustained low interest rate environment; the company’s investment portfolio is subject to
several risks that may diminish the value of its invested assets and the investment returns credited to customers; the
company’s valuation of investments and the determination of the amount of allowances and impairments taken on such
investments may include methodologies, estimations and assumptions that are subject to differing interpretations; any
impairments of or valuation allowances against the company’s deferred tax assets; the company’s actual experience could
differ significantly from its pricing and reserving assumptions; the pattern of amortizing the company’s DAC and other
actuarial balances on its universal life-type insurance contracts, participating life insurance policies and certain investment
contracts may change; the company may not be able to protect its intellectual property and may be subject to
infringement claims; the company’s ability to pay stockholder dividends and meet its obligations may be constrained by
the limitations on dividends or distributions Iowa insurance laws impose on Principal Life; changes in laws, regulations or
accounting standards; results of litigation and regulatory investigations; from time to time the company may become
subject to tax audits, tax litigation or similar proceedings, and as a result it may owe additional taxes, interest and penalties
in amounts that may be material; applicable laws and the company’s certificate of incorporation and by-laws may
discourage takeovers and business combinations that some stockholders might consider in their best interests;
competition from companies that may have greater financial resources, broader arrays of products, higher ratings and
stronger financial performance; a downgrade in the company’s financial strength or credit ratings; changes in investor
preferences; inability to attract and retain qualified employees and sales representatives and develop new distribution
sources; international business risks; fluctuations in foreign currency exchange rates; the company may need to fund
deficiencies in its “Closed Block” assets that support participating ordinary life insurance policies that had a dividend scale
in force at the time of Principal Life’s 1998 conversion into a stock life insurance company; the company’s reinsurers could
default on their obligations or increase their rates; risks arising from acquisitions of businesses; and a computer system
failure or security breach could disrupt the company’s business and damage its reputation.
Forward Looking Statements
3 Posted on PFG website: 1/30/2017

4. • Diversified and integrated business model delivers record quarterly and full year
after-tax operating earnings
• AUM of $592B, with total company net cash flows of $19B for the year
• Strong investment performance1 - more than 75% of investment options in the top
two Morningstar quartiles on a three and five-year basis
• Continued to generate and deploy capital to create long-term shareholder value:
− Deployed $156M of capital in 4Q16 through dividends and share repurchases;
and $94M in a deleveraging transaction that enhances financial flexibility
− Proactively restructured debt, resulting in: reduced interest expense; an
extended maturity profile; and reduced balance sheet debt, which lowered our
debt ratio
− Announced 1Q17 dividend of $0.45 per share bringing the TTM dividends per
share to $1.68, an 11% increase compared to 1Q16 TTM
• Managed the long-term rate of expense growth in line with revenues while still
investing in the business
Very strong finish to a record year
4Q16 Earnings Call Key Themes
4
1Investment performance represents the percentage of Principal mutual funds, separate
accounts, and collective investment trusts in the top two Morningstar quartiles.
Posted on PFG website: 1/30/2017

5. Morningstar rankings of Principal mutual funds, separate accounts and CITs
Percentage of funds in the top two quartiles
88% 89%
93%
59%
90%
86%
51%
76%
86%
1-Year 3-Year 5-Year
Dec. 31, 2015
Sep. 30, 2016
Dec. 31, 2016
Principal “I” shares; if no “I” share class then “A” share class; separate accounts use “R6” rate level; Includes Principal mutual funds,
separate accounts and collective investment trusts (CITs); Excludes money market, stable value and U.S. Property separate account.
5 Posted on PFG website: 1/30/2017
Strong Investment Performance Continues

6. Retirement and Income Solutions - Fee (RIS – Fee)
$390 $401
4Q15 4Q16
Net Revenue ($m)
On a trailing twelve month basis1:
• Net revenue decreased 1%
• Pre-tax return on net revenue of 33%
• Current quarter pre-tax operating earnings
reflect higher variable investment income
offset by higher amortization expense
• $4.2B of full year net cash flows, 2.4% of
beginning of year account value within our
targeted range of 1-3%
• $10.9B in full year sales; up 12% over 2015
• Maintained strong pre-tax return on net
revenue with disciplined expense management
6
1Excludes third quarter 2015 and 2016 actuarial assumption reviews.
Growth rates calculated using data from financial supplement.
Reported
Pre-tax Operating
Earnings ($m)
4Q16 $124
4Q15 $125
Change -$1 (-1%)
Posted on PFG website: 1/30/2017

7. Retirement and Income Solutions - Spread (RIS – Spread)
$108
$133
4Q15 4Q16
Net Revenue ($m)
On a trailing twelve month basis1:
• Net revenue increased 13%
• Pre-tax return on net revenue of 62%
• Significant growth in the business drove
double digit increases in account value, net
revenue, and pre-tax operating earnings
• Record pension risk transfer sales of $1B in
4Q16 and $2B for the full year
7
1Excludes third quarter 2015 and 2016 actuarial assumption reviews.
2Excludes higher variable investment income.
Growth rates calculated using data from financial supplement.
Reported
Pre-tax Operating
Earnings ($m)
Significant
Variances ($m)
Pre-tax Operating
Earnings ex
Significant
Variances ($m)
4Q16 $88 -$122 $76
4Q15 $62 $62
Change +$26 (+41%) +$14 (+21%)
Posted on PFG website: 1/30/2017

8. Principal Global Investors
On a trailing twelve month basis:
• Operating revenues less pass-through
commissions1 increased 5%
• Pre-tax return on operating revenues less
pass-through commissions1 of 37%
• Record pre-tax operating earnings for both
4Q16 and full year driven by revenue growth
and diligent expense management
• Full year net cash flows of $9.0B, with a
strong institutional pipeline going into 2017
• AUM of $391B (including institutional AUM
of $131B), increased 8% over year ago
quarter
• Pre-tax return on operating revenues less
pass-through commissions1 was strong and
above the guided range for 2016
$302
$339
4Q15 4Q16
Operating Revenues less
Pass-Through
Commissions1 ($m)
8 Posted on PFG website: 1/30/2017
Reported
Pre-tax Operating
Earnings ($m)
4Q16 $134
4Q15 $102
Change +$32 (+31%)
1This is a non-GAAP financial measure; see reconciliations in appendix.
Growth rates calculated using data from financial supplement.

9. $195
$198
4Q15 4Q16
Combined1 Net Revenue2
(at PFG share) ($m)
• Continued mid-teens growth in earnings over
4Q15 excluding significant variances3;
relative to 4Q15, FX tailwinds were more
than offset by lower inflation
• Reported 4Q16 net cash flows of $2.5B
increased 39% over 4Q15 and 23% on a
constant currency basis
• Record reported AUM of $137B increased
25% over 4Q15 and 16% on a constant
currency basis
On a trailing twelve month combined1 basis
(at PFG share):
• Net revenue increased 13% on an
adjusted4 constant currency basis
• Pre-tax return on net revenue4 of 38%
Principal International
1 Combined basis includes all Principal International companies at 100%.
2 This is a non-GAAP financial measure; see reconciliations in appendix.
3 Excludes impact of difference in 4Q16 actual vs expected encaje returns.
4 On a TTM basis. Excludes impact of difference in actual vs expected encaje
returns and inflation and 3Q16 actuarial assumption updates
Growth rates calculated using data from financial supplement.
9
Reported
Pre-tax
Operating
Earnings ($m)
Significant
Variances ($m)
Pre-tax
Operating
Earnings ex
Significant
Variances ($m)
4Q16 $66 +$113 $77
4Q15 $67 $67
Change -$1 (-2%) +$10 (+15%)
Posted on PFG website: 1/30/2017

10. $439
$479
4Q15 4Q16
Premium and Fees ($m)
Specialty Benefits
• Pre-tax operating earnings increased
due to the benefit of scale and growth in
the business; record full year pre-tax
operating earnings
• Strong persistency and record sales
drove growth in premium and fees
• Quarterly loss ratio better than the
guided range, partially due to
seasonality; TTM loss ratio consistently
strong
On a trailing twelve month basis1:
• Premium and fees increased 7%
• Pre-tax return on premium and fees of 13%
• Incurred loss ratio of 64%
1Excludes third quarter 2015 and 2016 actuarial assumption reviews.
2Excludes higher variable investment income.
Growth rates calculated using data from financial supplement.
10
Reported
Pre-tax
Operating
Earnings ($m)
Significant
Variances ($m)
Pre-tax
Operating
Earnings ex
Significant
Variances ($m)
4Q16 $72 -$52 $67
4Q15 $57 $57
Change +$15 (+27%) +$10 (+18%)
Posted on PFG website: 1/30/2017

11. $239 $249
4Q15 4Q16
Premium and Fees ($m)
Individual Life
• Pre-tax operating earnings increased due
to effective expense management and
growth in the business
• Strong sales in the quarter were up 24%
over 4Q15
• Business market represented more than
52% of full year sales driven by strong
business owner capabilities
On a trailing twelve month basis1:
• Premium and fees increased 4%
• Pre-tax return on premium and fees of 15%
1Excludes third quarter 2015 and 2016 actuarial assumption reviews.
Growth rates calculated using data from financial supplement.
11
Reported
Pre-tax Operating Earnings
($m)
4Q16 $35
4Q15 $30
Change +$5 (+17%)
Posted on PFG website: 1/30/2017

12. • Deployed $856M of capital in 2016
− $465M in common stock dividends
 Paid quarterly dividend of $0.43 per share in 4Q16 bringing the TTM
dividends per share to $1.61, a 7% increase compared to 4Q15 TTM
− $257M deployed on shares repurchased
− $94M deployed on deleveraging transaction that enhances financial flexibility
− $40M for increased ownership in our investment boutiques
• Expect to deploy $800M to $1.1B of capital in 2017
− Continue making progress toward a 40% dividend payout ratio
 Announced 1Q17 common stock dividend of $0.45 per share bringing TTM
dividends per share to $1.68, an 11% increase compared to 1Q16 TTM
Capital Deployment
12 Posted on PFG website: 1/30/2017

13. Non-GAAP financial measure reconciliations
Definitions
Variable investment income includes certain types of investment returns such as prepayment
fees and income (loss) from certain elements of our other alternative asset classes, including
results of value-add real estate sales activity.
Appendix
13 Posted on PFG website: 1/30/2017
Three Months Ended,
31-Dec-16 31-Dec-15
Principal Global Investors Operating Revenues Less Pass-Through Commissions
Operating revenues less pass-through commissions $ 339 $ 302
Plus: Commission expense $ 41 $ 45
Operating revenues $ 380 $ 347
Principal International Combined Net Revenue (at PFG Share)
Combined net revenue (at PFG share) $ 198 $ 195
Less: Combined operating expenses (at PFG share) $ 132 $ 128
Total Principal International Pre-Tax Operating Earnings $ 66 $ 67