Aegon Ltd. · EURONEXT:AGN
Aegon — Investor Day (June 2024)
51 slides from Aegon's investor day presentation, Jun 25, 2024
Slide 1: Aegon UK Strategy Teach-In
Aegon UK Strategy Teach-In Webinar June 25, 2024
Slide 2: Agenda
Welcome Lard Friese Introduction to Aegon UK Mike Holliday-Williams Workplace platform Ronnie Taylor Adviser platform Ronnie Taylor Agenda Advice Tim Orton Other businesses Jim Ewing Financials Jim Ewing Summary Mike Holliday-Williams Q&A session 2
Slide 3: Aegon UK Strategy Teach-In – Lard Friese
Aegon UK Strategy Teach-In Lard Friese Chief Executive Officer June 25, 2024
Slide 4: Operating in attractive segments within the UK savings and retirement market
Operating in attractive segments within the UK savings and retirement market UK wealth management market Platform Investment Aegon’s Distributors administrators managers positioning Workplace Workplace Asset Aegon UK intermediaries platforms management Aegon Asset Management Participants Wealth Advi
Slide 5: Long-term savings platform market with structural tailwinds supporting long-term growth
Long-term savings platform market with structural tailwinds supporting long-term growth Long-term savings platform market forecast (Forecasted AuA1, in GBP trillion) ▪ Large long-term savings and retirement market ~4.2 ▪ Platform market expected to have attractive growth rates ~10% p.a. ~1.2 Direct
Slide 6: Building Aegon UK's foundation since the 2020 Capital Markets Day
Building Aegon UK’s foundation since the 2020 Capital Markets Day 2020 CMD targets Status today Key achievements ▪ Built online journeys through modern interface of Aegon Digital Enhance the user experience ✓ ▪ Experience Acquired Pension Geeks, a workplace engagement specialist ▪ Grew platform cust
Slide 7: Creating a champion in the UK savings and retirement market
Creating a champion in the UK savings and retirement market Key business strengths Aegon UK’s business model Value for the Group ▪ Workplace platform ranks in the Platform ▪ Established and leading presence top 3 in terms of new schemes in a large and growing market for won1 Workplace Adviser2 savin
Slide 8: Transforming Aegon UK into a leading digital savings and retirement platform
Transforming Aegon UK into a leading digital savings and retirement platform while generating capital and cash Platform AuA Platform net flows Growing AuA by building on top 3 (in GBP billion) (in GBP billion) position1 of Workplace platform >135 ~5.0 >120 104 ~2.5 Turning to net positive flows by 8
Slide 9: Introduction to Aegon UK
Introduction to Aegon UK Mike Holliday-Williams Chief Executive Officer, Aegon UK
Slide 10: Building the UK's leading digital savings and retirement platform
Building the UK’s leading digital savings and retirement platform Aegon UK ▪ 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. Large, scalable digital Cl
Slide 11: Well positioned in growing markets with relevant competitive advantages
Well positioned in growing markets with relevant competitive advantages Aegon UK’s interconnected business model Competitive advantages ▪ Interconnected business model focused on Growth Platform UK’s long-term savings and retirement market franchises Workplace Adviser ▪ One platform for advisers, ma
Slide 12: Growth franchises representing GBP 104 billion of AuA
Growth franchises representing GBP 104 billion of AuA 2023 figures Growth franchises Other businesses Platform Traditional Institutional Workplace Adviser Advice Total Aegon UK Products Products AuA 1 (in GBP billion) 53 51 7 104 30 69 203 Net flows (in GBP billion) 1.8 (3.1) N/A (1.2) (1.2) 2.5 0.1
Slide 13: Operating in attractive markets with structural tailwinds supporting long-term growth
Operating in attractive markets with structural tailwinds supporting long-term growth Long-term savings platform market forecast Key growth trends (Forecasted AuA, in GBP trillion) Auto-enrolment and regular ~18 million ~4.2 active members contributing GBP contributions driving flows >700bn gross fl
Slide 14: Recent transformation into a more focused and efficient business
Recent transformation into a more focused and efficient business Aegon UK journey from 2016 Achievements 2019 – 2023 Disposed majority of 2016 ▪ Refocused on investments and savings annuities to L&G ▪ Established Aegon UK as a leading Workplace platform and Rothesay Acquired Cofunds ▪ Developed key
Slide 15: Ambition to become UK's leading digital savings and retirement platform
Ambition to become UK’s leading digital savings and retirement platform Growth Status today Key strengths franchises Weak Strong ▪ Focus on large and medium sized employers Workplace ▪ Leading innovative tools that provide actionable member insights and reduce employer administration platform ▪ Diff
Slide 16: Investing in the transformation of the growth franchises
Investing in the transformation of the growth franchises Growth Key transformation actions Ambition franchises ▪ Increase digitalization and automation Workplace Build on ▪ Enhance the retirement proposition platform top 3 position1 ▪ Personalize customer engagement ▪ Building UK's leading digital s
Slide 17: Workplace platform
Workplace platform Ronnie Taylor Chief Distribution Officer, Aegon UK
Slide 18: Winning position with attractive growth prospects
Winning position with attractive growth prospects Workplace DC market AuA1 Aegon UK Workplace platform Market position in 2023 (in GBP billion) Platform AuA CAGR Trust based (in GBP billion) Master Trust based 5 yr 53 9% >10k Contract based CAGR employers 857 8% 38 197 -1% 98% Scheme retention rate2
Slide 19: Differentiated proposition for employers with wide distribution reach
Differentiated proposition for employers with wide distribution reach Unique distribution model with ▪ Tailored propositions for medium and large size employers three routes to market Differentiated employer ▪ Easy to use and efficient administration interface propositions ▪ Actionable insights thro
Slide 20: Build on top 3 position through enhanced proposition and personalized customer engagement
Build on top 3 position through enhanced proposition and personalized customer engagement Workplace platform plans Targeted actions Meet Mylo - a trusted guide (to be launched) Increase ▪ Enhance digital journeys to increase self-service digitalization and ▪ Further automate front and back-office pr
Slide 21: Focused strategy drives further growth in net flows and AuA
Focused strategy drives further growth in net flows and AuA Workplace platform ambition (in GBP billion) Net flows >5.0 Improving scheme wins with contract-based and >4.0 Master Trust solutions through privileged distribution and integrated education, guidance, and advice propositions 2.0 1.8 Mainta
Slide 22: Adviser platform
Adviser platform Ronnie Taylor Chief Distribution Officer, Aegon UK
Slide 23: Focusing on 500 adviser firms who contribute around 70% of Adviser platform gross flows
Focusing on 500 adviser firms who contribute around 70% of Adviser platform gross flows Retail adviser market 2023-28e Aegon UK Adviser platform 2023 Market position with our (% of gross flows, 2023) (in GBP billion, 2023) 500 target adviser firms CAGR ~10% 51 3.6 Vertically integrated GBP 2.5 bn an
Slide 24: Well positioned for 500 target adviser firms
Well positioned for 500 target adviser firms Aegon Digital Experience ▪ Modern interface from new Aegon Digital Experience Leading ▪ Bespoke, high quality relationship management experience ▪ Dedicated service teams ▪ Supporting workplace arrangements through to individual savings Single core ▪ One-
Slide 25: Investing in technology and automation
Investing in technology and automation Investments Targeted actions Expected outcome by 2028 ▪ Upgrading data sourcing, workflow management and telephony ~350 Increased efficiency systems operational processes broadly bringing back Aegon Simplifying optimized UK’s addressable expenses1 ▪ Upgrading t
Slide 26: Becoming the leading digital savings platform for 500 target adviser firms
Becoming the leading digital savings platform for 500 target adviser firms Adviser platform plans Targeted actions Expected outcome by 2028 ▪ Address functionality gaps (e.g., model portfolio management, client reporting, data connections to Increased adviser technology) flows Enhance ▪ Extend propo
Slide 27: Penetration of 500 target adviser firms to increase with net flows turning positive by 2028
Penetration of 500 target adviser firms to increase with net flows turning positive by 2028 Adviser platform ambition (in GBP billion) Driving improved experience through Net flows technology simplification and automation, and Turning reducing costs positive (2.0) ~(1.5) Increasing primary platform
Slide 28: Advice
Advice Tim Orton Chief Executive Officer, Origen Financial Services
Slide 29: Interconnected Advice business with powerful distribution potential
Interconnected Advice business with powerful distribution potential Nationwide customers Aegon UK customers Other UK corporate (corporate partner) (Workplace platform) partners ~16 million customers ~3 million customers1 ~1 million customers Lead generation Synergistic with Aegon UK broader business
Slide 30: Executing targeted initiatives to monetize Advice business through integration
Executing targeted initiatives to monetize Advice business through integration Advice Plan Targeted actions Introducing digital-first advice ▪ Streamline structure to increase adviser productivity Integrated within Integrate business Mylo and reduce cost ▪ Remove technology and process cost duplicat
Slide 31: Other businesses
Other businesses Jim Ewing Chief Financial Officer, Aegon UK
Slide 32: Significant contribution to the IFRS operating result from Traditional Products
Significant contribution to the IFRS operating result from Traditional Products AuA profile – Traditional Defined Contribution Pension products Traditional (in GBP billion, excluding annuities) Products 30 ~30 ~29 (Defined contributions Contributed GBP 83 pensions and million to Aegon UK’s annuities
Slide 33: Low-margin Institutional Book with limited contribution
Low-margin Institutional Book with limited contribution AuA profile Institutional (in GBP billion) 69 58 (Institutional trading and Makes a positive but custody limited contribution to platform) operating capital generation and IFRS operating result 2019 2023 Requires limited management attention ▪
Slide 34: Financials
Financials Jim Ewing Chief Financial Officer, Aegon UK
Slide 35: Turning platform net flows positive while AuA increases driven by the Workplace platform
Turning platform net flows positive while AuA increases driven by the Workplace platform Overall platform development Platform net flows ~5.0 (in GBP billion) ~2.5 0.0 ~5.0 ~4.0 ▪ Continued growth of the Workplace platform 2.0 1.8 expected (2.0) ~(1.5) (3.1) (1.2) ▪ Net flows from Adviser platform t
Slide 36: Growing operating result as growth franchises compensate traditional products' run-off
Growing operating result as growth franchises more than compensate traditional products’ run-off IFRS Operating result (in GBP million) 186 ~190 ~180 ~165 ▪ Growing operating result enabled by the Growth investment in the transformation of the platform franchises1 driving flows and increased efficie
Slide 37: Increasing contribution to Group operating capital generation and Cash Capital at Holding
Increasing contribution to Group operating capital generation and Cash Capital at Holding during the transformation plan Operating capital generation (in GBP million) ~190 ~160 ▪ Operating capital generation expected to increase 139 supported by growth of platform AuA with limited new ~120 business
Slide 38: Conclusion
Conclusion Mike Holliday-Williams Chief Executive Officer, Aegon UK
Slide 39: Consumer Duty fully embedded to ensure better outcomes for customers
Consumer Duty fully embedded to ensure better outcomes for customers Customer Outcomes Consumer Duty fully embedded, continuous improvement plans in place Fair value Confident in our approach to fair and transparent pricing Interest on cash Cash account offers competitive rate in compliant fashion O
Slide 40: Building the UK's leading digital savings and retirement platform
Building the UK’s leading digital savings and retirement platform Aegon UK ▪ Growing net flows on the Workplace platform and turning positive on Adviser platform ▪ Investing over the 2024-2027 period Large, scalable digital Clear plans to ensure A modern digital to transform Aegon UK and grow saving
Slide 41: Q&A session
Q&A session
Slide 42: Appendix
Appendix
Slide 43: Key entities of Aegon UK
Key entities of Aegon UK Applicable regulation Aegon UK plc Solvency II PRA & FCA Regulated regulated firm MIFIDPRU FCA Scottish Pension Cofunds Ltd. Origen Ltd. investment Regulated Equitable plc Geeks Ltd. firm Origen Unregulated Financial company Services Ltd. 43
Slide 44: Biography Aegon UK Management Team
Biography Aegon UK Management Team Mike Holliday-Williams CEO of Scottish Equitable Plc, Cofunds Ltd, and Aegon UK Plc Mike started his career with WHSmith in 1991 as a graduate trainee, working as a Retail Manager in many UK stores and in Business Development. In 1997 he joined Centrica where he ha
Slide 45: Biography Aegon UK Management Team
Biography Aegon UK Management Team Jim Ewing Chief Financial Officer Jim was appointed Chief Financial Officer in 2021 and is responsible for: Leading the development of the medium and long-term financial strategy to meet shareholder expectations. Contributing to the wider Aegon UK strategy, directi
Slide 46: Biography Aegon UK Management Team
Biography Aegon UK Management Team Ronnie Taylor Chief Distribution Officer Ronnie Taylor joined Aegon in May 2018 as Chief Distribution Officer. Ronnie is an actuary and experienced business leader in distribution and business development with a strong track record in UK financial services. He is r
Slide 47: Biography Aegon UK Management Team
Biography Aegon UK Management Team Tim Orton Chief Executive Officer, Origen Financial Services Tim became the Chief Executive Officer at Origen Financial Services in 2024. Prior to that, he held various roles at Aegon, including Chief Investment Officer and MD Investment Solutions, where he had exe
Slide 48: Glossary
Glossary ▪ AuM Assets under Management ▪ AuA Assets under Administration ▪ ADX Aegon Digital Experience – front-end platform for advisers, employers and customers ▪ CAGR Compound annual growth rate ▪ CMD Capital Markets Day ▪ DC Defined Contribution ▪ ESG Environmental, Social and Governance ▪ FCA F
Slide 49: Disclaimer (1/2)
Disclaimer (1/2) Local currencies and constant currency exchange rates Actual results may differ materially and adversely from expectations conveyed in forward-looking statements due to changes caused This document contains certain information about Aegon’s results, financial condition and revenue g
Slide 50: Disclaimer (2/2)
Disclaimer (2/2) ▪ Aegon’s projected results are highly sensitive to complex mathematical models of financial markets, mortality, longevity, ▪ Standard setting initiatives of supranational standard setting bodies such as the Financial Stability Board and the International and other dynamic systems s
Slide 51: Aegon
W aegon