Slide 1: Full Year Results
Full Year Results For the year ended 31 December 2023 www.pensionbee.com
Slide 2: Agenda
Agenda 1 Overview 2 Strategic Update 3 Financial Update 4 Proposed US Expansion 5 Conclusion 6 Appendix www.pensionbee.com 2
Slide 3: Overview
1 Overview www.pensionbee.com 3
Slide 4: Leading Online Pension Provider: Solving Genuine Problems for Consumers
Leading Online Pension Provider: Solving Genuine Problems for Consumers Award-winning offering Trustpilot 4.6 out of 5 - Excellent(1) £4.4bn Assets under Administration 229k Invested Customers £24m Revenue >95% Customer Retention Dec 2023 Dec 2023 Dec 2023 Dec 2023 +44% YoY +25% YoY +35% YoY Stable
Slide 5: FY 2023 Overview
FY 2023 Overview 1● PensionBee’s online pension offering continues to make retirement planning for our customers straightforward and enjoyable. By the end of 2023 we were serving approximately 230,000 Invested Customers, aiming to make them Pension Confident. ● Since our Initial Public Offering in 2
Slide 6: Strategic Update
2 Strategic Update www.pensionbee.com 6
Slide 7: Consumer Need for Pension Engagement and Planning Remains Prominent in the Mass Market
Consumer Need for Pension Engagement and Planning Remains Prominent in the Mass Market Consumers Continue to Struggle with Most Consumers Have Not Consolidated PensionBee Focuses on Serving the Mass Market Pension Engagement(1) Pensions, But Interest is Growing 29% do not know how much their Proport
Slide 8: PensionBee's Continued Growth Underpinned by Significant Market Opportunity
PensionBee’s Continued Growth Underpinned by Significant Market Opportunity ● The UK has the world’s third largest pension The Majority of the £1.4 Trillion DC Median Workplace DC Pension Pot market, with over $3tn(3) of assets. Pension Market is Transferable(1) Sizes Continue to Increase(2) ● The m
Slide 9: Household Brand Status Generates Long Term Value and Organic Growth
Household Brand Status Generates Long Term Value and Organic Growth Cumulative Marketing Spend of £55 Million Brand Activities in 2023 Focused on PensionBee’s Brand Investment is has Made PensionBee a Household Brand(1) Cost-effective, High Return Channels Driving Organic Traffic Growth(2) www.pensi
Slide 10: Household Brand Name and Data-led Approach Drives Reduction in Cost per Invested Customer
Household Brand Name and Data-led Approach Drives Reduction in Cost per Invested Customer over 2023 Marginal Cost to Acquire a Net Flows per Marketing Spend are Customer Growth Customer is Declining Rapidly Increasing Continues Cumulative and In-Period CPIC for the 12 month period ending Net Flows/M
Slide 11: Product Offering Extended to Help our Customers Plan for and Enjoy a Happy Retirement
Product Offering Extended to Help our Customers Plan for and Enjoy a Happy Retirement Customers Supported within the Enhanced Customer Experience, Delivering New Launch of our Lifesearch Product Through Content Innovations and Improving Core Product Features Partnership We released in-product conten
Slide 12: Customer Service Continues to Distinguish Us and Gives Our Teams Purpose
Customer Service Continues to Distinguish Us and Gives Our Teams Purpose High Quality, Rapid Customer Service >10,000 Reviews Support our “Excellent” Rating We continued to prioritise availability to our customers, as We prioritised our customers’ overall experience with demonstrated by our exceptio
Slide 13: We Maintained a Customer-Centric Investment Offering and Delivered Value for Money
We Maintained a Customer-Centric Investment Offering and Delivered Value for Money Representing the Views of our Successful Launch of Impact Plan In Line with “Excellent” Value for Money Rating Customers(1) Customer Demand for At-Retirement Product Range(2) Our voting policy reflected our customers’
Slide 14: Scalable Technology Platform Continues to Underpin Sustainable Competitive Advantage
Scalable Technology Platform Continues to Underpin Sustainable Competitive Advantage Resulting in Productivity Gains and Generating Decade Long Investment in Customised Technology Operational Leverage We invested in the user experience and security of our product, We continued to improve efficiency
Slide 15: Consumer Ratings Demonstrate Standout Industry Position
Consumer Ratings Demonstrate Standout Industry Position Across the Market PensionBee Ranked Highly in Core Winner of 6 Boring Money Awards Based on 2023 Consumer Categories Performance PensionBee’s ranking compared to 24 companies(1) demonstrates top PensionBee has been recognised for bringing our c
Slide 16: PensionBee's Corporate Development Continues with Index Inclusion and Governance Achievements
PensionBee’s Corporate Development Continues with Index Inclusion and Governance Achievements PensionBee has received recognition across numerous ESG frameworks, rating PensionBee’s Energy Consumption agencies and indices (kWh, Scope 2) In 2023 PensionBee joined both the FTSE All Share and the FTSE4
Slide 17: 2024 Strategic Priorities for the UK
2024 Strategic Priorities for the UK Efficient investment in customer acquisition and growing brand awareness ● Cost effective brand investment, including through radio and sports sponsorship, to maintain brand awareness. ● Continuing to Reduce CPIC and increase net inflows per £ of marketing spend
Slide 18: Financial Update
3 Financial Update www.pensionbee.com 18
Slide 19: Finance Overview
Finance Overview ●1 We are solving a genuine customer problem and thereby serving the vast, structurally growing and underserved transferable pensions market with our scalable long-term business model. ●2 A high customer retention rate of 96%, coupled with mid-career customer base in the pension acc
Slide 20: Scalable Long-Term Business Model
1 Scalable Long-Term Business Model Proven Customer Acquisition £1.2tn Core Target Market of Transferable 1. Large and Structurally Growing TAM 1 Pensions(1) 2. 2 Strong Brand Awareness Coupled with Data-Driven Acquisition Strategy Proven Customer Acquisition Simple, Focused Customer Solution 1. 1 L
Slide 21: Compounding AUA Drives Recurring and Predictable Revenue
2 Compounding AUA Drives Recurring and Predictable Revenue AUA Underpinned by New Customers and Existing Cohorts (£m) Strong 2023 Net Flows(1) (£m) 4,350 4,350 +857 Cumulative Market Impact Retention Statistics 3,882 Customer Retention Rate: c.96% Cumulative Net Flows +£729m Cohort 2023 +14% impact
Slide 22: Scalability Drives Operating Leverage & Visibility on Profitability
3 Scalability Drives Operating Leverage & Visibility on Profitability … Creates Operating Leverage & Recurring & Predictable Revenue … … Coupled with Scalable Cost Base … Visibility on Profitability Over the 12 month period ending Revenue (£m) Over the 12 month period ending Cost Base (£m) Over the
Slide 23: Scalability Drives Operating Leverage & Visibility on Profitability
3 Scalability Drives Operating Leverage & Visibility on Profitability High Retention Rate(1) (%) … … Combined with Consistent … Creates Recurring and Predictable Revenue Margin (%) … Revenue (2) (£m) +4x Cohort 2023 Recurring & Cohort 2022 Predictable Revenue … Cohort 2021 Cohort 2020 Cohort 2019 Co
Slide 24: Expectations of Long Term Growth and Profitability
4 Expectations of Long Term Growth and Profitability Objective Guidance Long Term Illustration ● Aim to deliver sustained high annual Revenue growth. ● Continue appealing to the mass market, acquiring more new customers and growing customers’ pension balances. Revenue ● Our ambition is to pursue a c
Slide 25: Proposed US Expansion
4 Proposed US Expansion www.pensionbee.com 25
Slide 26: Proposed US Expansion
Proposed US Expansion ● We have entered into an exclusive, non-binding term sheet with a large, US-based global financial institution in order to expand into 1 the United States (US). The US has the world's largest Defined Contribution pension market, representing approximately 80% of the global tot
Slide 27: The US has the World's Largest DC Pensions Market, Structured Similarly to the UK's
The US has the World’s Largest DC Pensions Market, Structured Similarly to the UK’s The US Represents the Vast Majority US Retirement System Components ($tn)(2) of Global DC Assets(1) ● The US has the largest pension 36 36 34 market in the world, with approximately $36tn of assets and $22.5tn in def
Slide 28: The IRA Market is Vast but Focuses Predominantly on Affluent Consumers
The IRA Market is Vast but Focuses Predominantly on Affluent Consumers Less than Half of US Households have an IRA(1) 58% of US Households do not yet have an IRA Current IRA owners are typically married, older and wealthier with an average Of the 58% of households without an IRA, 30% of households a
Slide 29: IRA Rollovers are Motivated by Control and Consumers are Receptive to IRA Providers
IRA Rollovers are Motivated by Control and Consumers are Receptive to IRA Providers US consumers are receptive to rollovers and 60% of all IRAs have been set up through rollovers, implying that approximately 25% of US households have previously rolled over workplace assets into an IRA. $536 billion
Slide 30: Key Success Factors Resonate in the US Market
Key Success Factors Resonate in the US Market Competitive Strength UK Competitive Position US Resonance KPIs Likable brand and strong brand affinity; a PensionBee’s consumer testing indicates Efficient investment in brand that cares about its customers and is the company, brand and ethos resonates c
Slide 31: US Opportunity Offers Attractive Unit Economics
US Opportunity Offers Attractive Unit Economics Illustrative Unit Economics Suggest Strong Return Profile ✔ Methodological data driven approach to LTV/CAC customer acquisition ✔ Attractive LTV/CAC Asset Driven Lifetime Revenue ▪ Scalable technology platform ▪ Low cost to serve customers ✔ Attractive
Slide 32: Conclusion
5 Conclusion www.pensionbee.com 32
Slide 33: Key Investment Highlights
Key Investment Highlights Leading Online Enormous DC Household Brand Scalable Technology Simple, Long-Term Pension Provider: Pensions Market Name supports Platform developed Business Model Solving Genuine Underpinned by Effective, Data-led over Past Decade demonstrates Problems for Structural Growth
Slide 34: Current Trading and Upcoming Financial Calendar Dates
Current Trading and Upcoming Financial Calendar Dates ● Trading in 2024 is positive and tracking well against our objectives, which are to increase Net Inflows in absolute terms and Net Inflows per £ of marketing spend compared to 2023. ● Publication of Annual Report on Thursday 11 April 2024 (am).
Slide 35: Appendix
6 Appendix www.pensionbee.com 35
Slide 36: A History of PensionBee and Key Milestones
A History of PensionBee and Key Milestones Pivotal profitability milestone achieved in Q4 2023, driven by strong net inflows from new and existing customers, the inherent scalability of our technology platform and sustainable cost discipline Prototyping and Innovation and Acclaim from the Becoming a
Slide 37: Q4 2023 Highlights
Q4 2023 Highlights KPIs As at Period End Dec-2021 Dec-2022 Dec-2023 YoY AUA (£m) 2,587 3,025 4,350 44% AUA Retention Rate (% of AUA) >95% >95% >95% Stable Invested Customers ('000) 117 183 229 25% Customer Retention Rate (% of IC) >95% >95% >95% Stable Cost per Invested Customer (£) 246 248 241 (3)%
Slide 38: Scalable Technology Platform Generates Operating Leverage
3 Scalable Technology Platform Generates Operating Leverage Over the 12-month Period Ending YoY KPI & Financials (2022 to Drivers Dec-21 Dec-22 Dec-23 2023) Drivers of AUA and embedded growth include: (i) efficient customer acquisition driven by strong Assets under Administration £2,587m £3,025m £4,
Slide 39: Balance Sheet & Capital Position
4 Balance Sheet & Capital Position For the Financial Year Balance Sheet & Comment Capital Position FY 2022 FY 2023 Balance Sheet Net Cash Position £21.3m £12.2m PensionBee has a strong cash position of £12.2m as of Dec-2023 (£m) Capital Resources £20m £13m PensionBee is a capital light business. The
Slide 40: Glossary
Glossary Assets under Assets under Administration (AUA) is the total invested value of pension assets within PensionBee Invested Customers’ pensions. It measures the new inflows less the outflows and records a change in the Administration (AUA) market value of the assets. AUA is a measurement of the
Slide 41: Disclaimer
Disclaimer The information contained in this presentation has not been independently verified and no representation or warranty, express or implied, is made as to, and no reliance should be placed on, the fairness, accuracy, completeness or correctness of the information or opinions contained in it.