Principal Financial Group Non-GAAP Measures Explained

Principal Financial Group®
May 2017

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 that 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, on principal.com/investor, the company has provided
reconciliations of the non-GAAP financial measures to the most directly comparable U.S. GAAP
financial measure. 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.
Use of Non-GAAP Financial Measures
2

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, 2016 , and in the company’s quarterly report on Form 10-Q for the quarter ended
Mar. 31, 2017, 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

26%
23%
16%
17%
13%
5%
RIS - Fee
Principal Global
Investors
Principal
International
RIS - Spread
Specialty
Benefits
Individual Life
Pre-tax Operating Earnings1
$2,009.3 million
As of Mar. 31, 2017
Fortune 500 company; 138 year history
A Leading Financial Services Company
65%
25%
10%
Principal Global
Investors
Principal
International &
Other PFG
Entities
Third Party Asset
Managers
Assets Under Management2
$619.7 billion
As of Mar. 31, 2017
1 Trailing Twelve Months. Excludes Corporate.
2 Assets under management by asset manager.4
Company Overview
Fee
Spread
Risk

Segment Reporting Structure
Principal Financial Group
Dan Houston CEO
Deanna Strable CFO
Retirement &
Income
Solutions (RIS)
Nora Everett
President
Principal Global
Investors (PGI)
Jim McCaughan
President
U.S. Insurance
Solutions (USIS)
Amy Friedrich
President
Corporate
Management team averages 30 years of industry experience
Principal
International (PI)
Luis Valdes
President
RIS – Fee
RIS – Spread
Specialty Benefits
Life
5
Company Overview

6
Where we compete More than 70 countries
around the world
As of 12/31/2016
Asset management, retirement/long-term savings,
risk protection
Asset management, retirement/long-term savings
Asset management
Company Overview

*As of 12/2017
Experienced Management Team
7
Company Overview
Name Age* Title (Industry/PFG)*__
Daniel J. Houston 56 Chairman, President & Chief Executive Officer 33/33
Nora M. Everett 58 President - Retirement & Income Solutions 26/26
Amy C. Friedrich 47 President - U.S. Insurance Solutions 21/17
James P. McCaughan 64 President - Global Asset Management 43/15
Luis E. Valdes 60 President - International Asset Management and Accumulation 29/26
Timothy M. Dunbar 60 Executive VP & Chief Investment Officer 36/31
Gary P. Scholten 60 Executive VP & Chief Information Officer 37/37
Karen E. Shaff 63 Executive VP, General Counsel & Secretary 35/35
Deanna D. Strable 49 Executive VP & Chief Financial Officer 28/28
Elizabeth S. Brady 57 Senior VP & Chief Marketing Officer 33/4
Gregory B. Elming 57 Senior VP & Chief Risk Officer 35/35
Elizabeth L. Raymond 51 Senior VP & Chief Human Resources Officer 26/17

Sources: 1Pensions & Investments, “The Best Places to Work in Money Management among companies with our size category”, PFG recognition
12/12/2016. 2Asociacion de Administradóras de Fondos Mutuos De Chile, December 2016. 3The 5th largest manager of domestic real estate equity (net of
leverage), out of 66 managers profiled. Managers ranked by U.S. institutional, tax-exempt assets managed internally, as of Jun. 30, 2016. “Real Estate
Managers”, PENSIONS & INVESTMENTS, Oct 3, 2016. 4 12th largest manager of high yield securities, out of 85 managers profiled. Managers ranked by
U.S. institutional, tax-exempt assets managed internally, as of Dec. 31, 2015 “Largest Money Managers”, PENSIONS & INVESTMENTS, May 30, 2016. 5April
2017, U.S. Environmental Protection Agency. 6 PLANSPONSOR Recordkeeping Survey, June 2016. 7AUM among multi-country pension providers.
8Superintendencia de Pensions in terms of RIM, December 2016. 9Ranking in terms of AUM for PGBL and VGBL products, Fenaprevi. December 2016.
10Gadbury Group MPF Market Share Report, December 2016. 11PLANSPONSOR Defined Benefit Administration Survey, May 2015. 12PLANSPONSOR
Recordkeeping Survey, June 2016. 13PLANSPONSOR Record-Keepers Survey Buyers Guide, July 2016. 14LIMRA 2016 survey: Non-medical based on fully
insured employer contracts in force. 15 LIMRA 2015 survey: Individual Disability Insurance (IDI) rank based on in-force premium.
Industry Leadership
Global Retirement
and Long-Term Savings
Risk
Protection
Global Asset
Management
#1 Non-qualified deferred
compensation13
#3 Non-medical coverages14
#5 Individual Disability
Insurance15
#4 provider of DC plans6
#2 Pension provider in Latin America7
#7 AFORE – Mexico8
Brasilprev #1 market share – Brazil9
#5 MPF provider – Hong Kong10
#1 provider of DB plans11
#1 provider of ESOP plans12
Best Place to Work in Money Mgmt1
#1 APV – Chile Funds2
Top 10 manager Real Estate3
12th largest manager High Yield4
ENERGY STAR Partner of the Year5
8
Company Overview

Current Ratings
(As of January 2017)
Ratings related to Principal Life Insurance Company and Principal National Life Insurance Company.
9
Company Overview
Moody’s Investors
Service
‘A1’, Good – fifth
highest of 21
rating levels.
Outlook: Stable
Fitch Ratings
‘AA-’, Very Strong –
fourth highest of
19 rating levels.
Outlook: Stable
Standard & Poor’s
‘A+’, Strong – fifth
highest of 20
rating levels.
Outlook: Stable
A.M. Best
‘A+’, Superior –
second highest of
13 rating levels.
Outlook: Stable

Strong business fundamentals
10 1Department of Labor & Cerulli Associates, 2015. 2For trailing 12 months. 3Defined contribution and defined benefit.
Net cash flow as a
percent of beginning
of year account value
(2011-2015 average)
- 0.1%
+2.4%
Industry1
Principal
4Q
2012
1Q
2017 CAGR
RIS total account value $172B $242B 8%
RIS-Fee return on net
revenue2 30.6% 33.8%
RIS-Spread return on net
revenue2 56.8% 64.0%
Participants3 3.9M 5.1M 7%
Retirement & Income Solutions

Customer-Centric Business Model
Bundled
Unbundled
Small Case Large Case
BUSINESSMODEL
TARGET MARKET
MetLife
Nationwide
John Hancock
ING/VOYA
Transamerica
Great West
Mass Mutual
Fidelity
T.Rowe Price
Prudential
Vanguard
Wells Fargo
11
Retirement & Income Solutions (RIS – Fee)

0
5
10
15
20
25
UNITED STATES 2nd THROUGH 10th
LARGEST
MARKETS COMBINED
$Trillions
Defined
Contribution
+
IRA
Defined
Benefit
Source: Retirement Markets 2015, Retirement Research Inc., April 2015
Retirement market
opportunities
RETIREMENT READINESS:
• New plan formation
• Non-participants
• Under-saved
INCOME SOLUTIONS:
• Yield/Income
• Outcomes:
−Longevity
−Market volatility
−Inflation
The Top Retirement Market in the World
12

Principal Total Retirement Suite SM
Still a differentiator
All rankings sourced from PLANSPONSOR magazine as follows – Defined Benefit: DB Administration Survey
05/15; Defined Contribution and ESOP: Recordkeeping Survey 06/16; Nonqualified Deferred Compensation:
PLANSPONSOR NQDC Buyer’s Guide, July 2015
Defined Benefit
#1 DB provider
(by # of clients)
Defined Contribution
#4 DC plan recordkeeper
(by # of plans)
Employee Stock
Ownership Plan
#1 ESOP plan
recordkeeper
(by # of plans)
Nonqualified Plans
#1 Deferred Comp
provider
(by # of plans)
13

2.9 3.0 3.4 3.6 4.2 3.9
2.5 1.8
1.8 1.9
2.3
2.6 3.1 1.9 1.9
2.6
3.3
2.7
2.2
2.5
3.3
-1.0
1.0
3.0
5.0
7.0
9.0
11.0
13.0
2012 2013 2014 2015 2016 2017
$Billions1
4th Quarter
3rd Quarter
2nd Quarter
1st Quarter
3.9
Balanced Sales Approach
14
11.3
12.4
9.9
9.3
10.6
1 Transfer deposits

3.7 4.1 4.3 4.8 5.0 5.4
3.5
4.2 4.3
4.6 4.9
3.3
3.6 4.1
4.3
4.63.4
3.8
4.1
4.2
4.5
0
2
4
6
8
10
12
14
16
18
20
2012 2013 2014 2015 2016 2017
$Billions2
1st Quarter 2nd Quarter 3rd Quarter 4th Quarter
• People making a
deferral +37%1
• Avg deferral per
member +13%1
• People receiving a
match +40%1
The Power of Payroll Deduction
13.9
15.7
16.8
17.9
1 1Q17 compared to 1Q12
2 Recurring deposits
19.0
15
5.4

6% 6% 6% 6% 5%
24% 26% 27% 29% 29%
32% 31% 30% 28% 28%
26% 25% 25% 26% 27%
7% 7% 7% 7% 7%
5% 5% 5% 5% 5%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
2013 2014 2015 2016 1Q17
Individual Variable
Annuities
Employer Securities
Non-Proprietary
Funds
Proprietary Funds
Separate Account
General Account
Account Value Detail
16

Multiple Businesses Leverage Success
Revenue sourced from 401(k) platform
Variable Annuities, RIS – Spread, PGI, and Individual Life are all beneficiaries
17
0.0
0.5
1.0
1.5
2.0
2.5
3.0
3.5
2016 2021E
$Billions
Other PFG businesses
Defined contribution
0.6
0.4

Innovative Solutions: Solving Income Needs
MULTI-PRODUCT
SOLUTION SET
•“Through Retirement” Lifecycle Funds
•Mutual Funds that:
‒Generate income
‒Preserve capital
‒Protect against inflation
‒Address market volatility
•Annuities to provide:
‒Fixed returns
‒Guaranteed income
‒Protection against volatility
•Bank products
•Full Service Payout
‒Defined Benefit plan terminations
ACCUMULATION RETIREMENT
INCOME
OUR APPROACH:
• Education
• Planning assistance
(RetireSecure®)
• Full array of options
• Innovative solutions
18
Retirement & Income Solutions

$62 B
$188 B
19
$153 B
Diversified Global Asset
Management Organization
$403B
Fixed Income
Equity
Alternatives
19
of AUM1
• Broad range of investors in over 70 countries
• Offices in major money centers worldwide
• Long commitment to corporate stewardship;
signatory to United Nations’ Principles for
Responsible Investment (PRI)
• Principal ranked among top companies with
1,000+ employees in Pensions & Investments’
Best Places to Work in Money Management,
for the last four years2
1AUM as of 03/31/2017. 2Pensions & Investments, “The Best Places to Work in Money Management among
companies with our size category”, PFG recognition 12/12/2016.
Principal Global Investors

Global leadership in funds
20
20
PGI/Funds integration makes Principal a global destination for funds
• $183B in AUM across U.S. and International platforms, as well as
various private funds1
• Strong performance across boutiques and strategies
• Well positioned in Active and Smart Beta ETFs
Key functions aligned globally
• Distribution, governance and operations
Capabilities compelling to big intermediaries
• Focus on global consultants, global distributors,U.S. wirehouses,
U.S. independent broker-dealers and RIAs2, private banks
Work closely with PI in their local markets
1As of 03/31/2017. Includes Principal Funds, PGI Trust CITs, PGI Dublin Funds, PGI Australia Funds, and
various boutique-level funds. 2RIA: Registered Investment Advisor.

Morningstar rankings
Percentage of funds in the top two quartiles
Top Tier Investment Performance
73%
91%
94%
51%
76%
86%
46%
80%
89%
1-Year 3-Year 5-Year
03/31/2016 12/31/2016 03/31/2017
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.
4 OR 5 STARS = 34 FUNDS
3 STARS 21 FUNDS
2 STARS 3 FUNDS
1 STAR 1 FUND
of rated funds have
4 or 5 star rating
58%
21

Wells Fargo
Morgan Stanley
Merrill Lynch
UBS Financial Services, Inc.
US Trust
Top 5 distributors Top 5 U.S. strategies
Distribution – Principal Funds
1 AUM figures include both Retail and Retirement AUM and remove double counting for fund-of-fund assets. As of 3/31/2017.
Success through engaging distributors and advisors across channels
AUM (1) 5-Yr AUM
CAGR
Target Date $26.2B 5.7%
Strategic Asset Management $14.3B 8.2%
Dynamic Outcome Strategies $13.7B 30.2%
Midcap $12.0B 41.4%
Preferred Securities $5.4B 11.0%
22

• Strong teams, representing
all boutiques
• Close partnership with
product specialists in the
boutiques
• Broad range of specialist
investment capabilities
enables us to attract top
sales talent
• #30 on Institutional
Investor Top 3001
Global Distribution Institutional
$110.2
$114.7
$122.0
$130.6
$133.4
2013 2014 2015 2016 1Q17
Institutional AUM
($ billions)
1 Managers ranked by total assets under management. II 300 America’s Top 300 Money Manager, Institutional
Investor, July 2016, data as of 12/31/2015.23

In-demand, specialist capabilities
Principal
Global
Equities
$81.6
Principal
Portfolio
Strategies1
Principal
Global Fixed
Income
$95.9
Finisterre
Capital LLP
$3.0
Principal
Global
Investors
$403 B
Principal
Real Estate
- Private
$51.7
Morley
Financial
Services
$17.5
Edge Asset
Management
$26.4
Post Advisory
Group
$15.2
Columbus
Circle
Investors
$7.4
Origin Asset
Management
$4.0
Spectrum
Asset
Management
$21.5
Macro
Currency
Group
$3.5
Principal
Real Estate -
REITS
$13.3
Principal
Real Estate
- CMBS $8.6
Aligned
Investors
$20.1
Unique hybrid multi-boutique approach
Distinct investment processes
Leverage distribution
– Global institutional
– Global funds
Integrated business processes
– Drive scale
– Share best practices
24
Asset Allocation/Multi-Strategy
Fixed Income
Equity
Alternatives
AUM in billions, as of 03/31/2017. 1Principal Portfolio Strategies allocates investment dollars across PGI
boutiques and third-party managers.

• Industry leader in delivering
solutions, including multi-
asset solutions
• Strong and growing suite of
alternatives
• Early entrant in the Active
ETF space
• Hybrid, Passive and Indexed
offerings on retirement
platform of the Principal
Financial Group
• With boutiques across asset
classes, sector rotation
presents opportunities
Well-Positioned for Industry Trends
Generate
Income
Manage
Volatility
Protect
Purchasing
Power
Client
Needs
25

We operate in emerging markets with a fast growing middle class
(Year) = Principal entered country
PI Sourced AUM as of 03/31/2017
Principal Financial
Group
Mexico (1993)
• Annuities, Mutual Funds,
Pensions, Asset
Management
• AUM of $9.7B
• Wholly owned
Chile(1995)
• Annuities, Mutual Funds, Asset
Management, Mandatory
Pensions, Voluntary Pensions
• AUM of $44.2B
• Wholly owned
• Cuprum – a 98% majority owned
company
AUM of $37.7B
Brazil (1999)
• Annuities, Pensions,
Mutual Funds, Asset
Management
• Brasilprev – a 25%
owned joint venture with
Banco do Brasil
AUM of $67.0B
• Claritas – 100% owned
mutual fund company
AUM of $1.4B
India (2000)
• Asset Management,
Mutual Funds, Advisory
Services
• AUM of $0.7B
• 79% majority owned
company with Punjab
National Bank
Malaysia (2003)
• Conventional & Islamic
Asset Management,
Mutual Funds, Pensions
• AUM of $12.7B
• CIMB-Principal – 40%
owned joint venture with
CIMB Group; 50% owned
Islamic company with
CIMB
China (2005)
• Asset Management, Mutual
Funds
• AUM of $96.1B
• CCB-Principal – a 25% owned
joint venture with China
Construction Bank
Hong Kong (1996)
Mutual Funds, Pensions
• AUM of $8.2B
• Wholly owned
Thailand (2010)
• Asset Management, Mutual Funds
• AUM of $2.9B
• Wholly owned subsidiary of Malaysian JV
Indonesia (2007)
Mutual Funds
• AUM of $0.5B
• Wholly owned
subsidiary of Malaysian
JV
Singapore (2006)
• Asset Management
• AUM of $4.7M
• Wholly owned subsidiary of Malaysian JV
Our locations
26
Principal International

Increasing diversification Pre-tax operating earnings growth1
(USD millions)
82%
18%
Latin America Asia
2016
Pre-tax OE
$0
$50
$100
$150
$200
$250
$300
$350
2013 2014 2015 2016
1 Prior period results translated using foreign exchange rates from 2016. Excludes impact of the
difference in actual vs. expected encaje returns, 3Q16 actuarial assumption review items, and 3Q15
impairment of intangible assets in our Brazil mutual funds business.
Strong growth
27

Country 2014 rank 2019E
rank
2024E
rank
2030E
rank
U.S. #1 #1 #1 #2
China #2 #2 #2 #1
Brazil #7 #7 #6 #5
India #9 #5 #4 #3
Mexico #15 #14 #13 #13
Indonesia #16 #15 #15 #12
$64
$102
$400
2012 2020 2050
2014 2030 16 year CAGR
$34 Trillion $100 Trillion 7%
Total GDP for Six Listed Countries
6.0% CAGR
Global Asset Management Industry
Projected AUM
In Trillions
4.7% CAGR
Sources: Asset Management 2020: A Brave New World, PwC, 2014; The age of asset management? Speech by Andrew G
Haldane, Executive Director, Financial Stability, Bank of England, at the London Business School, London, 4 April 2014.) ;
http://www.cebr.com/reports/world-economic-league-table-2015/
High Growth High Potential Markets
28

Brasilprev CCBPAM CIMB-Principal
Partner Banco do Brasil China Construction Bank CIMB Group
Market(s) Brazil China
Malaysia, Thailand,
Indonesia, Singapore
Products Pension
Mutual funds, asset
management
Pension, mutual funds,
asset management
Partner’s
distribution
reach
65M retail customers1
5,400 branches1
340M retail customers 2
14,985 branches 2
12M retail customers 3
900 branches3
JV customers 4 2.0M customers 2.1M customers 0.5M customers
1 Banco do Brasil 3Q16 Historical Data per:
http://www.bb.com.br/docs/pub/siteEsp/ri/eng/dce/dwn/3Q16TableTM.xls. 2 CCB 2016 Annual Report.
3 CIMB Group 2016 Annual Report. 4Customer count as of 12/31/2016.
Current joint venture partners
29

1 Ranking from Praxis consulting firm released in November 2016 – received for 5th consecutive recognition
2 Chile 100 Most Reputable Companies ranking by Merco – 2016 ranking
3 Percent of P/VGBL industry net cash flows for full year 2016
4 Ranking is of market leadership in reserves of P/VGBL; Source: Fenaprevi, December 2016
5 Recognition by Asian Investor at their 2016 Asset Management Awards
Signed Strategic
Cooperation
Agreement with
CCB for potential
pension partnership
in China
Cuprum was
recognized as the #1
AFP service provider1
and as a top 100
most reputable
company 2
Brasilprev captured
51% of industry net
cash flows 3 and is #1
in total market share 4
Received multiple
recognitions for
performance of
funds including best
fund house in
Malaysia5
China Chile Brasilprev SE Asia
2016 notable achievements
30

Focus on the SMB market
Solutions for business owners, employers, and individuals
• Business Owner Executive
Solutions (life & disability)
Business
Owners
IndividualsEmployers
• Group Insurance
(dental, vision, disability, life)
• Multi-life Disability
• Nonqualified Deferred
Compensation
• Group Voluntary Insurance
(dental, vision, disability, life,
critical illness)
• Individual Disability Insurance
• Individual Life Insurance
• Individual Dental
U.S. Insurance Solutions
31

2016
Market
Share
2016
Industry
Rank
Specialty Benefits
• Total Group In-Force Contracts 8.0% #3
• Life 11.0% #2
• Disability 8.5% #4
• Dental 5.4% #7
• Individual Disability In-Force Premium2 9.5% #5
• Individual Disability New Sales Premium 16.6% #3
Individual Life
• Non-Qualified Plans1 19.0% #1
• Total Life New Sales Premium 1.5% #20
Success Reflects Expertise Serving SMB Market
Sources: LIMRA, 2016 (1) PlanSponsor Record-Keeper’s Survey Buyer’s Guide, July 2016, excluding governmental 457 plans
(2)Based on LIMRA 2015 data
32

BOES 28%
ER/NQ 25%
Individual 47%
Solutions for businesses,
business owners and key
executives
Business owners’ financial
challenges
• Exiting the business
• Business transition
• Retaining key employees
• Retirement planning
Solutions for key employees
• Retirement income
• Survivor income
• Business protection
Focus on the Business Market
2016 Sales
BOES = Business Owner/Executive Solutions
ER/NQ = Employer/Non-qualified
33
U.S. Insurance Solutions: Individual Life

5.6%
10.9%
3.1%
1.6%
Group Benefits Individual DI
The Principal Industry
BalancedPortfolioandAboveIndustryPremiumGrowth
2016 Total Premium & Fees
Group
Benefits
81%
• Stable loss ratios
• Attractive margins
Source: LIMRA 2012-2015
3 Year In-Force Premium Growth
(2012 – 2015 CAGR)
34
U.S. Insurance Solutions: Specialty Benefits Insurance
Group
Disability
27%
Dental/
Vision
47%
Group Life
26%
Group
Benefits
83%
Individual
Disability
17%

U.S. Distribution Overview
PRINCIPAL
CONNECTION
• 70 counselors
with focus on
education
PRINCIPAL
ADVISOR
NETWORK
• 1,200 advisors
• Sell all products
• Financial
Planning
Focused
BANKSINSURANCE-
ORIENTED
INVESTMENT-
ORIENTED
• Wirehouses
• Regional
Broker/Dealers
• Planners
• Brokerage
General Agents
• Insurance
Producers
• Banks
• Broker/
Dealers
• Marketers
THIRD PARTYPROPRIETARY
Global Firm Relations
Select 3rd party distributors with dedicated support
STRENGTHENS RELATIONSHIPS AND FUELS SALES GROWTH
All supported by DEDICATED SERVICE TEAMS providing education, training, counseling and retention
WHOLESALE CHANNELS
Group
BenefitsRetirement
Investment
Solutions Annuities NQDC
Disability
Insurance
Retail
LifeESOP
35
Distribution

Broad and Deep Distribution
Proprietary provides foundation; 3rd party provides accelerated growth
Product Line New
Sales
1st 2nd 3rd Top 3
Represent
NQ Life 38%
Retail Life 58%
Individual
Disability
Plus Group 38%
Group Benefits 10%
Fixed Annuities 74%
Variable Annuities KeyCorp Ins.
Agency
97%
Mutual Funds 19%
FSA – New Sales
Assets
30%
FSA – New Sales
Case Counts
34%
Highland Capital
Brokerage
Principal
Advisor
Network
Principal
Advisor
Network
Principal
Advisor
Network
Principal
Advisor
Network
Principal
Advisor
Network
Principal
Advisor
Network
Rankings and percentages as of 12/31/2016
36
Distribution

Corporate
Public Bonds
29%
Corporate
Private Bonds
16%
CMBS
5%
Commercial
Mortgages
15%
MBS
6%
ABS
5%
Government,
Agency, State
& Political
11%
Other1
11%
Cash
2%
1Other includes Equity Securities, Residential Mortgages, Real Estate, Policy Loans, Investment in Equity
Method subs, Direct Finance Leases and Other Investments
Investment philosophy & strategy
Our strategy hasn’t changed:
High quality,well-diversified portfolio
Liability-driven investment approach
Active asset/liability management
Optimized risk adjusted yields and returns
Global collaboration and best practices
Portfolio responsibility remains at local country
Total PFG as of 03/31/2017
GAAP carrying value
Diversified investment portfolio
Total invested assets & cash
$79.3B
Total invested
assets & cash
37
Investments

Continual shift in mix of business leading to a higher ROE and more
free cash flow
69%
15%
16%
TTM 1Q17
Operating Earnings
After tax
Power of our Fee-Based Model
30%
40%
30%
2001
Fee Spread Risk
Fee includes Retirement & Income Solutions – Fee, Principal Global Investors, and Principal International.
Spread includes Retirement & Income Solutions - Spread.
Risk includes U.S. Insurance Solutions.
38
Financials

Returning Capital to Shareholders
• Less capital needed to support organic growth
• Moving to higher dividend payout ratio
• Diligently pursuing active acquisition opportunities
• Opportunistically buying back shares
Organic Growth Dividends Available Capital
Target2007
50%
25%
25%
30%
40%
30%
(Acquisitions & share buybacks)
39
Financials

Grow capital
• Organic growth
• Mergers and
acquisitions (M&A)
Expect to deploy 65–70% of our net income over the
long-term, with fluctuations in any given year
Balanced capital deployment
strategy
Return capital
• Common
stock dividends
• Share repurchases
Optimize
capital structure
• Financial flexibility
40
Long-term financial outlook
Financials

Driving ROE
Growth Earnings
+ 4-5% for market
performance
+ 4-5% for growth from
sales/NCF
+ 1-2% operational efficiency
• Organic growth
• Dividend growth
• Opportunistic
share repurchases
ROE =
30-60 bps average
annual ROE
improvement
Equity
41
Financials

Executing on our
strategy to
increase our
global footprint
and fee-based
earnings
We’ve Played Offense Since the Recession
Opportunity
Year
Announced Rationale
AXA Hong Kong
Pension
2014
 15 year exclusive
distribution with 4,440
agents
 Gateway into China
2012
 Complete offering in Chile
with marquee pension and
savings franchise
2012
 Entry into Brazil mutual
fund and asset management
market
2011
 Enhance global equity
investment capabilities
2011
 Establish leadership in
emerging markets fixed
income investing
2011
 Solidify position as a leader
in Mexican Afore market
BrasilPrev 2010
 23 year extension of
successful JV with Banco do
Brasil
Emerged from
financial crisis
in a position of
strength and
flexibility
AFORE
42
Financials

Capital Deployment
Deployed $480 million
$287
$150
$50
$375
$200
$180
$100
Long term: expect to deploy 65–70 percent of our net income with fluctuations
in any given year
Deployed $1.1 billion
$441
$275
$355
43
Financials
$465
$257
$40
$94
2013 2014 2015 2016
Common Stock Dividends
Share Repurchases
Strategic Acquisition
Debt reduction
$ in millions

• Deployed $248M of capital in 1Q17
− $130M in common stock dividends
 Paid quarterly dividend of $0.45 per share in 1Q17 bringing the
TTM dividends per share to $1.68, an 11% increase compared to
1Q16 TTM
− $118M deployed on shares repurchased
• Expect to deploy $800M to $1.1B of capital in 2017
− Continue making progress toward a 40% dividend payout ratio
 Announced 2Q17 common stock dividend of $0.46 per share
bringing TTM dividends per share to $1.75, a 14% increase
compared to 2Q16 TTM
Capital Deployment
Financials
44

If macroeconomics
change by…
Equity market
return +/- 10%
Interest rates
+/- 100 bps
FX: US dollar
changes +/- 2%
Then Principal’s
annual pre-tax
operating earnings
will change by…
+/- 4-6%1 +/- < 1%2 -/+ < 1%3
And the primary
businesses
impacted are…
RIS – Fee RIS – Spread PI
PGI Individual Life
SBD
1 Assumes an immediate 10% change in the S&P 500 followed by 2% growth per quarter thereafter. 2 Excludes
the impact of actuarial unlockings. 3 Principal is primarily impacted by changes in Latin American and Asian
currencies. Inverse relationship between movement of the US dollar and impact to Operating Earnings.
What if things don’t go as expected?
45
Changes in key macroeconomic conditions have an impact on
Principal’s annual pre-tax operating earnings
Long-term financial outlook
Financials

Key Business Drivers Outlook
Net revenue = operating revenues less benefits, claims & settlement expenses less dividends to policyholders.
RONR = Return on Net Revenue.
Estimated pre-tax operating losses for Corporate of $200-$225 million in 2017
US GAAP total company operating earnings effective tax rate of 21-23% in 2017
46
Financials
Retirement and Income Solutions
2017
outlook
Long-term
outlook
RIS-Fee
Net revenue growth
CAGR
2-5% 3-7%
Pre-tax return on net
revenue
29-33% 28-32%
RIS-Spread
Net revenue growth
CAGR
5-10% 5-10%
Pre-tax return on net
revenue
55-60% 55-60%
2017
outlook
Long-term
outlook
Combined net revenue growth CAGR
(at PFG share, in reported USD)
11-14% 11-14%
Combined pre-tax return on net
revenue (at PFG share, reported USD)
38-42% 40-45%
2017
outlook
Long-term
outlook
Operating revenues less pass-
through commissions growth
CAGR
4-8% 5-8%
Pre-tax return on operating
revenues less pass-through
commissions
34-37% 33-36%
2017
outlook
Long-term
outlook
Specialty
Benefits
Premium & fees
growth CAGR
7-9% 7-9%
Pre-tax return on
premium & fees
10-13% 10-13%
Loss ratio 62-68% 62-68%
Individual
Life
Premium & fees
growth CAGR
3-6% 3-6%
Pre-tax return on
premium & fees
14-18% 15-20%

Non-GAAP Financial Measure Reconciliations
Financials
47
Trailing
Twelve
Months,
Pre-tax Operating Earnings (Losses) 31-Mar-17
Pre-tax operating earnings, excluding Corporate $ 2,009.3
Corporate (224.1)
Pre-tax operating earnings (losses) $ 1,785.2
Pre-tax net realized capital gains (losses) (89.3)
Pre-tax other adjustments (86.4)
Certain adjustments related to equity method investments and
noncontrolling interest (43.6)
Income (loss) before income taxes $ 1,565.9

Principal Financial Group Non-GAAP Measures Explained

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