Aegon Ltd. · EURONEXT:AGN
Aegon — Merger or Acquisition (2016)
13 slides from Aegon's merger presentation, 2016
Slide 1: Aegon acquires Cofunds and becomes the leading UK platform business
Creating the leading UK platform 1 Aegon acquires Cofunds and becomes the leading UK platform business
Slide 2: Unique opportunity to accelerate execution of strategy
2 Unique opportunity to accelerate execution of strategy Market • Number 1 retail platform leadership • Number 3 in workplace savings market Leveraging • Becoming a pure play digital provider technology • Leveraging state-of-the-art technology Creating the leading Achieving cost • GBP ~60 million co
Slide 3: Becoming a pure play digital provider
Creating the leading UK platform 3 Becoming a pure play digital provider Accelerating strategic transformation of Aegon UK Completing strategic transformation 2017 and future Transformational M&A transactions 2016 From insurance to platform business • Digital provider across the value chain 2011-201
Slide 4: Clear leader in fast-growing market
Creating the leading UK platform 4 Clear leader in fast-growing market • Achieving leadership positions in fast-growing markets following Cofunds acquisition - Number 1 retail platform - Number 3 in workplace savings market Leading market position1 Continued platform market growth (4Q15, market shar
Slide 5: Attractive synergies from acquisition
Creating the leading UK platform 5 Attractive synergies from acquisition • GBP ~60 million of cost synergies within two years representing ~25% of digital cost base1 - Cost synergies will be realized by leveraging Aegon’s existing state-of-the-art platform - Building on Aegon UK’s strong track recor
Slide 6: Modest investment drives cash flow growth
Creating the leading UK platform 6 Modest investment drives cash flow growth • Capital benefit from cost savings limits net investment for Cofunds acquisition • Aegon will recognize GBP ~150 million Solvency II benefit as a result of cost savings1 - Cost synergies will be equally split between Aegon
Slide 7: Appealing financial rationale
Creating the leading UK platform 7 Appealing financial rationale Cofunds acquisition to deliver substantial value Capital benefit of GBP ~150 million resulting from cost savings Modest investment Net capital investment for acquisition and restructuring of GBP ~50 million1 Attractive Payback peri
Slide 8: Appendix
Creating the leading UK platform 8 Appendix
Slide 9: Profile of the Cofunds business
Creating the leading UK platform 9 Profile of the Cofunds business Cofunds provides platform services to advisors charging fees over assets Offering Asset development • Cofunds, founded in 2001 as a first mover in the (in GBP billion) UK Platform Market and currently the market leader CAGR with GBP
Slide 10: Building on complementary strengths
Creating the leading UK platform 10 Building on complementary strengths Leveraging strong existing skillset • Assets: GBP 77bn (GBP 28bn retail) • Assets: GBP 12bn • Assets: GBP 8bn Platform, GBP 46bn Traditional (GBP 21bn to be upgraded) Profile • Customers: 750,000 (retail) • Customers: 350,000 •
Slide 11: Advisor and customer benefits
Creating the leading UK platform 11 Advisor and customer benefits Substantially enhancing adviser proposition and distribution capability Superior Minimal Enhanced Major new proposition disruption distribution business relationship • Continuous platform • No requirement for an • Cofunds and Aegon •
Slide 12: For Investor Relations please contact [email protected]
Creating the leading UK platform 12 For Investor Relations please contact +31 70 344 8305 [email protected] For Media Relations please contact +31 70 344 8344 [email protected] P.O. Box 85 2501 CB The Hague The Netherlands
Slide 13: Disclaimer
13 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 proporti