For financial professional use only. Not for distribution to the public. Presenter(s) Name & Title Location The Principal Financial Group Business Market Perspectives – Client Profiles

While this communication may be used to promote or market a transaction or an idea that is discussed in the publication, it is intended to provide general information about the subject matter covered and is provided with the understanding that none of the member companies of The Principal are rendering legal, accounting, or tax advice. It is not a marketed opinion and may not be used to avoid penalties under the Internal Revenue Code. You should consult with appropriate counsel or other advisors on all matters pertaining to legal, tax, or accounting obligations and requirements. Insurance issued by Principal National Life Insurance Co (except in NY) and Principal Life Insurance Co. Plan administrative services offered by Principal Life. Securities offered through Princor Financial Services Corp., , Member SIPC and/or independent broker/dealers. Principal National, Principal Life, and Princor® are members of the Principal Financial Group®, Des Moines, IA t av No part of this presentation may be reproduced or used in any form or by any means, electronic or mechanical, including photocopying or recording, or by any information storage and retrieval system, without prior written permission from the Principal Financial Group . For financial professional use only. Not for distribution to the public.

P & C Target Profile Established businesses (operating 10+ years) $1MM - $10MM in annual revenue 1-30 Employees Industries: Professional, Scientific and Technical Services, as well as Manufacturing and Construction

For financial professional use only. Not for distribution to the public. Primary Business Approaches Business Planning Services Business Priorities Checklist Informal Business Valuation Buy-Sell Review Quick, six question thought-provoking questionnaire

For financial professional use only. Not for distribution to the public. Approaching with Business Planning Services Who are good candidates Manufacturing CompaniesConstruction Companies Information technology Companies Professional service-related companies Profitable, growing businesses with gross revenues of $500,000 and above.

For financial professional use only. Not for distribution to the public. Additional Business Market Approaches Clients who may benefit from an alternative approach: Farms/RanchesReal estate holding companies Nonprofit organizationsFinancial Services Firms Publicly traded companiesCompanies engaged in criminal activity Sole ProprietorsNew companies Non-profitable businesses - With less than $500,000 in annual revenue

For financial professional use only. Not for distribution to the public. Alternative Approach: Business Priorities Ask 6 meaningful questions. Help clients prioritize their Financial needs.

For financial professional use only. Not for distribution to the public. Additional Business Approaches Approaching around Specific Needs Industry Specific Key Person Retirement Estate Planning Agriculture Health Care

For financial professional use only. Not for distribution to the public. For Business Clients Top three concerns Losing employees who are Key to their business Ensuring they are able to exit their business – on their terms Enjoying sufficient income during retirement Who are these employees? Sales people CFO Client Service Manager Is their intended plan documented and funded? Who will be the new owner(s)? Will the money be available when needed? Will the business generate enough income to meet the retiring owner’s needs – as well as allow the business to continue to thrive?

For financial professional use only. Not for distribution to the public. For Business Clients Top three solutions Key Person Insurance Buy-Sell Funding Supplemental Retirement Plans Protects against the loss of Key Employees Will the right amount of money be available, at the right time, in the right place, for the right buyer? Will the exiting owner have a retirement income GAP? Will the Management team stay in place through the transition?

For financial professional use only. Not for distribution to the public. Highlight The Opportunity Only 30% of agribusines ses survive to the second generation; while 10% survive to the third and only 4% to the fourth generations

For financial professional use only. Not for distribution to the public. #3 priority is health and wellness solutions, yet 45% don’t offer medical insurance. #4 priority is qualified retirement plans, yet 58% don’t offer any. #1 priority is business protection, yet 70% still need it. Thought Leadership Priorities Don’t Align with Action #2 priority is income protection, yet 74% still need it (up from 68% in 2012). But – 1 in 3 would recommend it. #5 priority is group benefits, yet 63% don’t offer any. Of those that offer coverage – disability, dental and life are the most popular. Take away? They need help taking action.

For financial professional use only. Not for distribution to the public. Why Work in the Business Market? The business is generally the owner’s most valuable asset –Confirm knowledge of the value and set expectations Help ensure the buy-sell agreement is current and funding is adequate An informal valuation can help start the planning process Opens multiple sales opportunities for you PRE-RETIREE BUSINESS OWNERSHIP: THE $4 TRILLION OPPORTUNITY

For financial professional use only. Not for distribution to the public. All-Encompassing Business Life Insurance Solutions Business, Owner & Executive Solutions Nonqualified Deferred Compensation Employee Stock Ownership Plans (ESOP) Key person Buy sell – exit planning Supplemental Retirement Plans (Executive Bonus/SERP Select/Select Reward) Estate planning Elective and supplemental deferred compensation Comprehensive ESOP support Coordinate with BOES on related funding of solutions Management of repurchase obligation All retail life products (variable fixed and IUL) Focus: Protection and retirement income Variable corporate-owned life insurance (COLI) Retirement income All retail life (variable and fixed) and variable COLI Protection and retirement income Sales support coordinated case by case Comprehensive sales support Administration (BMA) – no fee Administration - for a feePolicy administration (BMA)- no fee ESOP plan administration (ESOP platform) – fee-based

For financial professional use only. Not for distribution to the public. Dedicated Resources Support Advanced Solutions Wholesale SupportBusiness Market Administration Access Attorneys, CPAs and Senior consultants Provide technical support, custom case design and consultative services Point-of-sale assistance Customized “Client Briefings” Access to product and underwriting, specifically designed for the business market – Accelerated Underwriting – GI/SI on all permanent products BMA comprehensive plan-level administrative services – at no charge* Annual employee and employer reporting Online access Economic benefit & 101(j) reporting Administer more than 14,500 plans * Administrative services for deferred compensation plans are available for a fee with asset/liability tracking and reporting.

For financial professional use only. Not for distribution to the public. Advanced Solutions & Sales Support Team Your Team, Your Resources *JD is an educational degree and holder does not provide legal services on behalf of the companies of the Principal Financial Group ®. *CPA does not provide tax or accounting services on behalf of the companies of the Principal Financial Group ®. Our purpose: Experienced sales support Personalized consulting Our people: Attorneys CPAs, MBAs Case design specialists BOES Wholesalers Life RVPs National Sales Desk