Aegon : UK Strategy Teach-In

Aegon UK Strategy Teach-In

Webinar

June 25, 2024

Agenda

2

Welcome	Lard Friese
Introduction to Aegon UK	Mike Holliday-Williams
Workplace platform	Ronnie Taylor
Adviser platform	Ronnie Taylor
Advice	Tim Orton
Other businesses	Jim Ewing
Financials	Jim Ewing
Summary	Mike Holliday-Williams
Q&A session

Aegon UK Strategy Teach-In

Lard Friese

Chief Executive Officer

June 25, 2024

Operating in attractive segments within the UK savings and retirement market

UK wealth management market

Participants

Products

		Platform		Investment
Distributors		administrators		managers
Workplace		Workplace		Asset
intermediaries		platforms		management
Wealth		Adviser		Investment
advisers		platforms		solutions
Banks		Direct to consumer		Discretionary
	platforms		fund management

Cash and	DC pension		Guaranteed
decumulation income
deposits	products
	products
Protection and group	Investment	DB pensions
risk insurance		accounts	(incl. bulk annuities)

Aegon's positioning

Aegon UK

Aegon Asset

Management

4

Long-term savings platform market with structural tailwinds supporting long-term growth

Long-termsavings platform market forecast (Forecasted AuA1, in GBP trillion)

▪ Large long-term savings and retirement market

~4.2

		~1.2	Direct	▪ Platform market expected to have attractive growth rates
	~10% p.a.
	~2.7				▪ Demographics drive higher demand for savings and
				decumulation solutions
	~0.8	~1.6	Adviser
1.7					▪ Customer access is driven by user experience and
0.5	~1.0				technology
0.6		~1.4	Workplace
	~0.9	▪ Several routes to market including employers through
0.6
			workplace offerings, financial advisers managing customer
					investments, and direct to customers
2023	2028e	2033e

1. AuA = Assets under Administration

5 Source: Broadridge, Fundscape, Platforum, Aegon research

Building Aegon UK's foundation since the

2020 Capital Markets Day

2020 CMD targets	Status today
Enhance the user	✓
experience

Grow the customer base

✓

Improve margins	~

Improve platform	
earnings and net flows

Key achievements

• Built online journeys through modern interface of Aegon Digital Experience
• Acquired Pension Geeks, a workplace engagement specialist
• Grew platform customer base in part by leveraging relationship with Aon
• Extended strategic partnership with Nationwide, with transfer of financial planning teams to Aegon UK.
• On April 4, 2023, Aegon announced the sale of its UK individual protection book to Royal London
• Decreased addressable expense base
• Consistent net flows for the Workplace platform
• Navigated the challenging economic climate in advisers market with further investments needed to deliver positive net flows

6

Creating a champion in the UK savings and retirement market

Key business strengths

• Workplace platform ranks in the top 3 in terms of new schemes won1
• Large Adviser platform with a leading digital experience and differentiating propositions
• Interconnected business model leveraging customer flows to and from our Workplace platform
• Scalable technology allowing for innovative propositions and personalized engagement

Aegon UK's business model

Platform

Workplace		Adviser2
Administration		Platform
of employee		to manage
pension		customer
schemes		investments

Advice

Financial advice for customers

Other businesses

including Traditional products

with significant contribution to operating result

Value for the Group

• Established and leading presence in a large and growing market for savings and retirement solutions
• Investing in clear differentiators to build a more focused franchise to create value
• Steady and reliable cash contributor to the Group with a strong solvency position that has limited sensitivity to financial markets
• Growing business with potential for higher remittance growth in the medium term

7	1. Ranking in terms of new schemes won based on AuA
2. The Adviser platform business was previously referred to as "Retail" in Aegon's disclosures

Transforming Aegon UK into a leading digital savings and retirement platform while generating capital and cash

Growing AuA by building on top 3 position1 of Workplace platform

Turning to net positive flows by 2028 on Adviser platform by focusing on a target group of 500 adviser firms

Self-funded investment plan over the 2024-2027 period to enhance technology and drive efficiencies, enabling 12% p.a. growth of operating capital generation

Continued growth of remittances during the transformation. Potential for higher remittance growth after the investment period

Platform AuA			Platform net flows
(in GBP billion)			(in GBP billion)
		>120	>135				~5.0
	104
88					~2.5
				0.0	(1.2)
2019	2023	2026e	2028e	2019	2023	2026e	2028e

Growth of operating	Growth of remittances starting
capital generation	from GBP ~100 million in 2024

~+12% p.a.	~+5 p.a.
	GBP million
Until 2028, starting from around	Until 2028, with potential for higher
GBP 120 million in 2024	growth after the investment period

8 1. In terms of new schemes won

Introduction to Aegon UK

Mike Holliday-Williams

Chief Executive Officer, Aegon UK

Building the UK's leading digital savings and retirement platform

Aegon UK

Large, scalable digital	Clear plans to ensure	A modern digital
savings & retirement	success, drive growth	business winning in
platform with GBP 104	and increase efficiency	attractive growing
billion AuA		target segments

• Growing net flows on the Workplace platform and turning positive on Adviser platform
• Investing over the 2024 - 2027 period to transform Aegon UK and grow operating capital generation
  at 12% p.a.
• Around GBP 100 million remittances in 2024, growing at around GBP 5 million per annum. Potential for higher remittance growth after the investment period

10