Aegon Ltd. · EURONEXT:AGN
Aegon — Aegon UK — Investor Presentation (September 2014)
18 slides from Aegon's investor presentation, Sep 2, 2014
Slide 1: Aegon UK Strategy Update
Aegon UK Strategy Update London, September 2nd 2014 Adrian Grace Clare Bousfield Management Board Member UK Chief Financial Officer & UK Chief Executive Officer
Slide 2: Overview
Overview Agenda Key Messages Our clear strategy has not changed, with our customer-focused platform Strategy making the most of the market opportunities Regulatory Change The Government and the DWP’s announcements will have a significant effect & Our Advantage on the industry. These changes support
Slide 3: Aegon UK at a glance
Aegon UK at a glance 6 locations OPERATING STRUCTURE EDINBURGH LYTHAM Aegon UK Board MANCHESTER DUBLIN MAIDENHEAD LONDON Aegon UK Executive Aegon UK Distribution Channels Aegon Ireland At Non- Workplace ADMS Retirement advised 2 million Origen CUSTOMERS Support Services Marketing Customer Services
Slide 4: Component parts of the Aegon UK business
Component parts of the Aegon UK business Core Distribution Channels: At Retirement, Workplace & Non-advised With-Profits Pensions Annuities Current AUM c£6.1bn Closed fund with extensive (Central to strategy) Currently c£9bn portfolio guarantees Current AUM c£41bn Protection Legacy Products Focus on
Slide 5: Regulatory, Government and Market changes have challenged our strategy but it remains fundamentally strong
Regulatory, Government and Market changes have challenged our strategy but it remains fundamentally strong Challenges Significant Change Outcomes Capital Extensive challenges Regulators Solvency II to existing models Pricing approach UK Government Improving customer outcomes Price Cap Remo
Slide 6: Our strategy is to use our platform to acquire, retain and consolidate retirement assets
Our strategy is to use our platform to acquire, retain and consolidate the retirement assets of our target customers across a very large market At Retirement Non-Advised Workplace Regulation creating Government requiring Ageing population with under-served population employees to be auto- accumulate
Slide 7: A wide range of experience to drive our progress
A wide range of experience to drive our progress Duncan Jarrett David Beattie Angela Seymour Jackson MD Retail MD Direct MD Workplace 1986 2008 2012 Tommy Young David Macmillan COO CMO 2009 2011 Jim Ewing Clare Bousfield Neil Machray CRO CFO Internal Audit 2011 2010 2013 Date joined Aegon 7
Slide 8: We understand customer value and our battleground
We understand customer value and our battleground – we are focused on retaining and growing our share of the critical age 50+ market Customer Acquisition Most Valuable Customers (£150 income / customer) (£315 income / customer) 8
Slide 9: Retaining, Upgrading and Consolidating our existing valuable customers
Retaining, Upgrading and Consolidating our existing valuable customers is key to our future growth… c80% of the UK’s wealth is held by people over the age of 50* • Optimising value by focussing on We have the customers persistency drivers today… Retain Integrated solution for • Developing capability
Slide 10: Offering a "to and through" retirement solution on a single platform
Offering a “to and through” retirement solution on a single platform that uniquely supports seamless customer transition across channels At Retirement Non-Advised Workplace Accumulation Access to Access to valuable valuable customers customers Launched November 2011 Launched March 2014 Launched June
Slide 11: Retiready demo
Retiready demo https://www.youtube.com/watch?v=VBeZqKJlbho Aegon Retiready Service Flythru 11
Slide 12: Competitive strengths under-pin our customer strategy
Competitive strengths under-pin our customer strategy and offer Award winning,, Brand new Income market leading* mobile-first Drawdown is a Single technology State of art ‘to and through’ Integrated technology rolled standard feature platform technology retirement solution out for on our platform. s
Slide 13: Platform growth driven by retaining and acquiring the right customers
Platform growth driven by retaining and acquiring the right customers The Platform attracts and retains Fast growing platform valuable customers Award £1.9bn Workplace Attract 70% of platform customers are new to Aegon winning One Retirement platform ARC Upgrade & Upgrade New Packaged consolidate on
Slide 14: Growing capital generation supports dividend payment in 2016
Growing capital generation supports dividend payment in 2016 Cost base Cost base decreasing in 2015 2014 to 2015 Cashflow, £m Target Current business transformation investments including Retiready will also reduce in 2015 One-offs in 2014 Other # 2014 asset de-risking has negative cashflow imp
Slide 15: Overview
Overview Agenda Key Messages Our clear strategy has not changed, with our customer-focused platform Strategy making the most of the market opportunities Regulatory Change The Government and the DWP’s announcements will have a significant effect & Our Advantage on the industry. These changes support
Slide 16: Thank You
Thank You cial future — 2 8 fc} E I £
Slide 17: United Kingdom
United Kingdom Higher earnings driven by improved Underlying earnings Operating expenses persistency before tax (GBP million) (GBP million) Operating expenses declined 20% due mostly to lower investments in technology and business transformation 26 costs 22 97 20 77 77 Group pensions sales slo
Slide 18: Disclaimer
Disclaimer Cautionary note regarding non-IFRS measures This document includes the following non-IFRS financial measures: underlying earnings before tax, income tax, income before tax and market consistent value of new business. These non-IFRS measures are calculated by consolidating on a proportiona