#1SAGA'S SUPERBRAND STRATEGY SUPPORTED BY INSIGHT, DATA AND MEDIA Capital Markets Event 24 JANUARY 2023 SAGA#2AGENDA Euan Sutherland Group CEO Welcome and our strategy Lisa Edgar Insight Powering a 'life unlimited' through insight Michael O'Donohue Data Unlocking customer value through data Aaron Asadi Media Introducing Saga Media Euan Sutherland Group CEO Summary and Q&A 2 Capital Markets Event - Saga's Superbrand Strategy SAGA#3OUR STRATEGY Euan Sutherland Group CEO SAGA#44 Capital Markets Event - Saga's Superbrand Strategy BUILDING SAGA INTO A SUPERBRAND What is a Superbrand? A Superbrand offers consumers significant emotional and/or physical advantages over its competitors which customers want, recognise and are willing to pay a premium for through its inherent additional value Over the past two years, we have established a new brand conversation with older people, celebrating their experience rather than seeing age as a negative Insight, Data and Media are the three biggest drivers of incremental customer numbers, NPS, revenue and profit growth Knowing our customers, and developing products and services that older people want, encourages them to choose Saga again and again Harnessing this insight and connecting it to our data allows us to personalise the customer experience ⚫ This deepens our connections with our customers, helps us reduce the cost of acquisition and deliver a predictable lifetime value SAGA#5THE SAGA VISION By 2027, our ambition is to be the largest and fastest-growing business for older people in the UK, Our priority is to move to higher frequency, higher engagement new products and services for our customers ...based on the largest active pool of the most insightful data on the fastest growing and wealthiest demographic 5 Capital Markets Event - Saga's Superbrand Strategy SAGA#6OUR STRATEGY DELIVERING OUR VISION Increased interaction From once a year to twice a day - product reset and Saga Media More products and services From one to three - creation of 'the Superbrand', consent capture and cross-sell ☑ Creating lifetime value Through database and CRM management based on existing high retention 6 Capital Markets Event - Saga's Superbrand Strategy SAGA#7OUR STRATEGY ...WITH THE KEY OUTCOME BEING MORE SAGA CUSTOMERS BUYING MULTIPLE SAGA PRODUCTS Database flow through to existing businesses Customer value pyramid Brand Media Innovation (new customers) (new customers) (new customers) Database Identify the best prospects Determine the best approach Develop personalised messaging Most valuable customers 3 products held; 500k customers Mid-point customer value 2 products held: 750k customers 1 product held: Basic customer value 3.75m customers Insurance Money Cruise Travel Engaged targetable customers (Existing database + Media and brand) 7 Capital Markets Event - Saga's Superbrand Strategy 7.4m customers SAGA#88 OUR STRATEGY ...WHICH WILL TRANSFORM SAGA IN THE NEXT 5-10 YEARS 2022/23 2027/28 2032/33 Insurance Travel Cruise Money Media Insurance dominates earnings with... • Low growth ⚫ High regulation • Low frequency and lower customer engagement Cruise and Travel growth • Move towards a more capital- light model as Saga Money and Saga Media start to scale ⚫ Sophisticated analysis of the Big Window insights and data investment creates LTV • More balanced PBT across Cruise, Travel, Media, Money and Insurance ⚫ Growth in customer numbers, engagement and frequency of interaction Note that the charts on the left reflect an illustrative level of earnings and mix of business only Capital Markets Event - Saga's Superbrand Strategy Driving lifetime value SAGA#9OUR STRATEGY ...BY FOCUSING ON OUR THREE-STEP GROWTH PLAN 1. Maximising our existing businesses Specific growth plans for each business enabling growth, accountability, efficiency and delivery of a common brand purpose: Cruise • Travel • Money Insurance 2. Step-changing our ability to scale while reducing debt Grow existing businesses while reducing debt Developing new businesses through innovation in a capital-light way 3. Creating 'The Superbrand' for older people in the UK Re-position the brand to challenge perceptions of age Commercialise and grow our database • Build exceptional insights, supported by the Saga Insights Develop higher frequency, higher engagement business models through Saga Media Create an exceptional customer and colleague experience every day 9 Capital Markets Event - Saga's Superbrand Strategy SAGA#10POWERING A ‘LIFE UNLIMITED' THROUGH INSIGHT Lisa Edgar CEO Saga Insight SAGA#11POWERING A 'LIFE UNLIMITED' THROUGH INSIGHT INSIGHT - A DRIVER OF VALUE FOR SAGA More customers engaging more often because Saga reflects who customers are and what they want 11 Capital Markets Event - Saga's Superbrand Strategy Choosing to spend with Saga because products are built on their needs Spending a lifetime with Saga and spreading the word because Saga knows how needs change as you age SAGA#1212 Capital Markets Event - Saga's Superbrand Strategy The 60s bullseye SAGA#13POWERING A 'LIFE UNLIMITED' THROUGH INSIGHT A SIGNIFICANT OPPORTUNITY Health + 88 years 86 years Wealth + Time £395k average total individual wealth 25m free hours (on average) Those reaching 60 in 2023 have another 25-30 years Those approaching 65 years old (60- 64 years) are the wealthiest in UK society Released when 59-year-olds move in their 60s and beyond 15% Those aged 65+ limited by health 9% Those aged 65+ limited by health £ £ £ Ý 6 activities and feeling very healthy, particularly Saga customers This group have always been wealthier during their lives than any other group 70% of those retired say it fills them with excitement and are doing an average of six activities 13 Capital Markets Event - Saga's Superbrand Strategy SAGA#14POWERING A ‘LIFE UNLIMITED' THROUGH INSIGHT REALISING THIS OPPORTUNITY 1 People change as they age... 2 ...impacting their spending behaviours... 3 ...and translating into commercial value Saga is focused on a period of significant change. Our ageing unit is focused on what and how It then pinpoints how these changes drive changing needs and spending behaviours Saga is realising commercial value by shaping its proposition around these changing needs Commercial value is derived from identifying and then fulfilling our customers' c.30-year journeys from thinking about retirement to enjoying it 14 Capital Markets Event - Saga's Superbrand Strategy SAGA#15POWERING A ‘LIFE UNLIMITED' THROUGH INSIGHT REALISING THE OPPORTUNITY: THE JOURNEY TO TAILOR-MADE BY SAGA • Unique customer insight supports development of products and services Our new travel offer, Tailor-Made by Saga is a prime example Our insight and ageing expertise revealed that older consumers want: 15 Capital Markets Event - Saga's Superbrand Strategy A time for me/us To live a life unlimited Adventure without sacrifice Service wrappers not support Leading to the specific design and positioning of a proposition with early signs of success: Five new Tailor-Made propositions 300 new products 1,000 Tailor-Made calls SAGA#1616 POWERING A 'LIFE UNLIMITED' THROUGH INSIGHT PILLARS OF SUCCESS Our ambition is for Saga to better know and understand what it means to get older and how to make it the positive experience it should be An absolute focus on what it means to meet the needs of older consumers Our existing and potential customers are confident that Saga knows what they need as they age and will deliver against those needs A strong start, but it is just the start... A needs-based segmentation model built on our age-related expertise enabling deep customer understanding Every Saga colleague is confident that they know how to service the needs of our customers/potential customers Every Saga colleague has been through the Basics of Ageing Programme Every stakeholder is confident that Saga uniquely understands ageing and will continually develop successful products/businesses Our needs-based customer personas are embedded into the product development process Capital Markets Event - Saga's Superbrand Strategy SAGA#17POWERING A 'LIFE UNLIMITED' THROUGH INSIGHT OUR CUSTOMER SEGMENTATION... We spoke to: 2,800 2,500 ...all aged between market consumers SAGA 50 customers and 90 What did we model? Personality Working status dimensions Life stage Retirement attitudes Activity levels Health Affluence Comfort with risk Age Product behaviours Attitude to, and use of, technology How does this lead to value? Customer segmentation allows us to: Shape our future products and services to the groups with the most potential Target those who might be most attracted to what Saga offers now 17 Capital Markets Event - Saga's Superbrand Strategy SAGA#18POWERING A 'LIFE UNLIMITED' THROUGH INSIGHT ...IDENTIFIED THREE CORE CUSTOMER GROUPS Group 1 Group 2 Group 3 Horizon Seekers Group 5 Cautious Planners Life Maximisers Group 8 •<= 4.0m 3.3m 2.3m 3.3m 3.6m 1.7m 4.6m 2.9m Total number of 50-90 year-olds in the UK: 25.7 million 18 Capital Markets Event - Saga's Superbrand Strategy SAGA#19POWERING A 'LIFE UNLIMITED' THROUGH INSIGHT THERE ARE THREE CLEAR, SIZEABLE AND ATTAINABLE TARGETS Life Maximisers Saga customers: 0.8m (47%) Opportunity: 3.8m Pipeline: 30 years, 60-90 year-olds Strategy: cement direct relationship, grow, cross-sell Financially comfortable - affluent, retired owner occupiers with few money worries Confident self-directors - high level of self-efficacy, in control, comfortable with risk, delegators ⚫ Positive about age - young at heart, not limited by age, less limited by health, embracing retirement ⚫ Outward looking – meeting new people, friendships important, volunteering ⚫ Curious learners/seek stimulus - intellectual and physical. Very interested in new countries and different cultures Comfortable with digital use - strong Facebook users, enjoy technology, most likely to research and buy online ⚫ Buy premium with value 19 Capital Markets Event - Saga's Superbrand Strategy SAGA#20POWERING A 'LIFE UNLIMITED' THROUGH INSIGHT THERE ARE THREE CLEAR, SIZEABLE AND ATTAINABLE TARGETS Cautious Planners Saga customers: 0.3m (18%) Opportunity: 1.7m Pipeline: 25 years, 60-85 year-olds Strategy: Grow, retain and cross-sell Financially comfortable – retired, owner occupiers • Some health issues - more likely to be limited by health or health very salient • Family/caring orientated - family and friends important/central to mental health ⚫ Seek predictability and certainty - like the familiar and value tradition Risk averse planners - like detail, things planned well in advance, desire insurance cover, worry about financials • Quiet retirement but still holidaying - safe/quiet adventure • Use digital but need support Buy premium for safety 20 Capital Markets Event - Saga's Superbrand Strategy SAGA#21POWERING A 'LIFE UNLIMITED' THROUGH INSIGHT THERE ARE THREE CLEAR, SIZEABLE AND ATTAINABLE TARGETS Horizon Seekers Saga customers: 0.2m (13%) Opportunity: 3.3m Pipeline: 35-40 years, 50-90 year-olds Strategy: Engage, attract, convert • Younger, still working - but still very likely to feel younger than their years • Wealthy - highest income, high proportion are comfortable • Positive towards ageing and retirement - feel confident and are starting to consider retirement ⚫ Love learning - they are maximisers • Active travellers- like new cultures/places and to travel the world • Love new tech and are early adopters • Online travel bookers - Airbnb/Booking.com/Expedia ⚫ Feel in control and think/plan ahead • Like luxury - the most willing to pay more for luxury accommodation and will pay for add-on services but like to seek choice 21 Capital Markets Event - Saga's Superbrand Strategy SAGA#2222 POWERING A 'LIFE UNLIMITED' THROUGH INSIGHT STRATEGY TO TACTICAL DEPLOYMENT OF THE SEGMENTATION A route to strategies and targeting 10m overall database 1 individual 12,000 members O O 0 mmm Incomparable insight panel UK's largest panel of people over 50 ⚫ Around 12k customers Segment labels for 6k of them Plus database and transactional variables Plus MOSAIC profiling ◆ Plus data collected from more than 50 studies since March 2022 Capital Markets Event - Saga's Superbrand Strategy Largest database of people over 50 Database model Appended to 6m customers Rich enough to shape • Identifiable enough to target Jim from Leeds What we know ◆ Retired and affluent ⚫ Owns two homes ⚫ Loves travelling ⚫ Enjoys walks with his dog What we do with this insight ⚫ Showcase pet and home insurance Target with Tailor-Made travel • Propose Saga Money savings accounts SAGA#23POWERING A ‘LIFE UNLIMITED' THROUGH INSIGHT BUILDING OUR TIERED TRAVEL INSURANCE PRODUCT AROUND OUR KEY CUSTOMER GROUPS Our unique customer insight plays a pivotal role in the development of products and services that meet the needs and wants of our key customer groups. Our new tiered travel insurance offer is ready for launch Q3 2023/4. Our insights enabled us to... Test using Assess customer needs Understand the opportunity Scope tiered propositions our customer panel Shape ready for launch 23 Capital Markets Event - Saga's Superbrand Strategy SAGA#24POWERING A 'LIFE UNLIMITED' THROUGH INSIGHT HUMAN-CENTERED DESIGN AS PART OF OUR ECOSYSTEM... Monitor against key business metrics Brand consideration Lifetime value Proposition commercials Translate ageing into needs and opportunities Segmentation Personas ⚫ Needs maps 01 We are here Drive those into value propositions and journeys Gap analysis Value propositions with unique differentiators ⚫ Journey mapping Expectations against journeys Ensure brand is reflecting these truths and measure Brand development ⚫ Key brand metrics 05 Life Unlimited: 02 Time, for you 24 Capital Markets Event - Saga's Superbrand Strategy 03 04 Measure customer expectations and experiences against these • Experience-led VOC programme Pain-point deep dives Competitor CSAT/NPS SAGA#25POWERING A 'LIFE UNLIMITED' THROUGH INSIGHT INSIGHT - A DRIVER OF VALUE FOR SAGA More customers engaging more often because Saga reflects who they are and what they want 25 Capital Markets Event - Saga's Superbrand Strategy Choosing to spend with Saga because products are built on their needs Spending a lifetime with Saga and spreading the word because Saga knows how needs change as you age SAGA#26UNLOCKING CUSTOMER VALUE THROUGH DATA Michael O'Donohue Chief Data Officer SAGA#27Our database covers 40% of the market... ... that gives us unrivalled access to customers... 27 Capital Markets Event - Saga's Superbrand Strategy ...at a much lower cost ...containing rich, actionable information... SAGA#28UNLOCKING CUSTOMER VALUE THROUGH DATA A CUSTOMER MANAGEMENT APPROACH BASED ON LIFETIME VALUE IS AT THE HEART OF OUR STRATEGY £££ Lifetime value £ Cost per acquisition £ Current lifetime value £££ Potential lifetime value By utilising lifetime value alongside cost per acquisition, Saga will be able to effectively balance between cost and return at an individual customer and group level The difference between, and changes in, current lifetime value and potential lifetime value will direct the strategy and tangible targeted marketing activity More informed basis for strategic and operational investments Understanding the best ways to unlock the value from every customer 28 Capital Markets Event - Saga's Superbrand Strategy SAGA#29UNLOCKING CUSTOMER VALUE THROUGH DATA FOCUSING ON LIFETIME VALUE HAS THREE DISTINCT ADVANTAGES 1 13 Lifetime value recognises that... The value of a customer relationship extends beyond one year years Average Saga customer 17 years Most valuable customers 3 2 The value of a customer relationship extends beyond one product 1.4 products Average 2.7 products Most valuable Some customers have greater potential than others, requiring greater investment Our most valuable customers are 17x more valuable than some others 29 Capital Markets Event - Saga's Superbrand Strategy SAGA#30UNLOCKING CUSTOMER VALUE THROUGH DATA A LIFETIME VALUE APPROACH INVOLVES MANAGING THE RELATIONSHIP WITH THE CUSTOMER OVER TIME Retain and recommend Increase time on book and likelihood to recommend through better engagement 30 Capital Markets Event - Saga's Superbrand Strategy Attract Identify and target higher value customers through a range of marketing activities Grow Increase product holding and value per customer by recommending relevant products Nurture Engage the customer through orchestrating rich, personalised journeys and interactions SAGA#31UNLOCKING CUSTOMER VALUE THROUGH DATA SAGA IS NOW WELL-PLACED TO DELIVER THIS Platform Re-platforming all data ⚫ Linking multiple datasets together ◆ New cloud-based data warehouse, processing large volumes in real time Tools State of the art tools for analytics, modelling and marketing ⚫ New machine learning toolset Operating model Holistic customer management 31 Capital Markets Event - Saga's Superbrand Strategy ☑ ☑ ☑ SAGA#3232 Capital Markets Event - Saga's Superbrand Strategy UNLOCKING CUSTOMER VALUE THROUGH DATA WE ARE ALREADY TAKING STEPS TOWARDS THIS Grow our database Drive digital sign-up Enrich our existing data Increase the number of customers opting in Building value management tools Create the value model Build the strategy for managing lifetime value Enable our channels Build the recommendation engine • Use data to personalise communications SAGA#33UNLOCKING CUSTOMER VALUE THROUGH DATA WE ARE ROLLING OUT A GROUP-WIDE CONSENT TO COVER ALL SAGA ACTIVITIES ☑ Grow our database £ Consent to specific products (some or all) ١٧ Via one of the following channels 33 Capital Markets Event - Saga's Superbrand Strategy 4 Simple 'yes' or 'no' consent across all Saga products via email We will grow the volume of consents through simplification of consent script SAGA#34Low Lifetime value UNLOCKING CUSTOMER VALUE THROUGH DATA WE ARE BUILDING DATA DRIVEN MARKETING AND SALES ACROSS ALL CHANNELS ✓ Enable our channels Assign lifetime value (LTV) Use behavioural cohorts to identify drivers for growth Set cohort strategies Test, learn and launch new initiatives to drive LTV High High Medium Low Value potential High Increasing LTV £780 Upsell focus Drive consent Drive engagement Focus on efficiency Refined targeting of high-value groups • Reduced focus on low-opportunity groups • Personalised discounting ◆ Next-best- product recommendations Media spend optimisation • Improved channel selection G seo YouTube 2 SAGA £250 Low High Brand engagement 34 Capital Markets Event - Saga's Superbrand Strategy#35UNLOCKING CUSTOMER VALUE THROUGH DATA WE ARE DEVELOPING OUR STRATEGY FOR MAXIMISING LIFETIME VALUE ☑ Build value management tools Customer lifetime value Propensity models Intent signals 35 Capital Markets Event - Saga's Superbrand Strategy Marketing Alignment RECOMMENDATIONS ENGINE Contextual overlays SAGA#3636 UNLOCKING CUSTOMER VALUE THROUGH DATA OVER THE NEXT FOUR YEARS, WE WILL DEPLOY DATA AND ADVANCED ANALYTICS TO UNLOCK GREATER CUSTOMER-VALUE October 2022 - January 2023 2023 Q2 2024 Q2 2024-Q2 2025 Q2 2025 onwards Phase 1 Stand-up Phase 2 Plug in Phase 3 Speed up Phase 4 Build out Estimate the current and potential value of each customer and identify the best next action to grow value Operationalise recommendations into all channels and, most importantly customer journeys Shift to gathering real-time feedback and deploying dynamic and responsive personalisation across all touchpoints to support conversion Extend recommendations to 100% of touchpoints Integrate online and offline channels Capital Markets Event - Saga's Superbrand Strategy SAGA#37Our database covers 40% of the market... ... that gives us unrivalled access to customers... 37 Capital Markets Event - Saga's Superbrand Strategy ...at a much lower cost ...containing rich, actionable information... SAGA#38INTRODUCING SAGA MEDIA Aaron Asadi CEO Saga Media SAGA#3939 SAGA MEDIA WHERE WE ARE GOING 10m global monthly users and 1.5m registered group customers in five years £50m new revenue between 2023/4-2027/8 £40m annual PBT by 2033/34 Phase 3 - Expansion Applying Phase 1 and 2 to new categories 2023 Note that all financials are indicative only Capital Markets Event - Saga's Superbrand Strategy 2024 Phase 2- Monetisation Extract value through advertising and affiliates supported with rich data Phase 1 - Core audience growth Build through SEO and referrals by consistently delivering content that addresses data-proven needs and also content that engages emotionally 2025 2026 SAGA#4040 Capital Markets Event - Saga's Superbrand Strategy SAGA#4141 Capital Markets Event - Saga's Superbrand Strategy OUR MISSION To build and launch digital media that is proud to represent the real needs and interests of people over 50, to give advice and share stories for them, to give them a place where they can be heard and valued SAGA#4242 INTRODUCING Exceptional A brand-new website that is proud to be made for Saga customers, with best-in-class consumer advice and inspirational stories that celebrate. this incredible generation Capital Markets Event - Saga's Superbrand Strategy B News 13:41 Exceptional Menu Homes Fitness & Wellbeing Exercise Nutrition Sleep Wellbeing Life Fitness Technology Exceptional content you can trust Our expertschosse, test and review the products you care about completely independently from any brand involvement if you buy something through a link on our site we may care a comission Read how we test News Fitness & Vielbeing Exercise The benefits of walking to improve your health Lace up your boots and enjoy the great outdoors Share When it comes to exercise, walking may not be the first activity that springs to mind. It's easy to see it as a mora sedentary activity, picturing a gantia stroll and stopping for coffee and cake along the way. But walking is one of the best things you can do for your overall health and offers multiple health benefits. Walking is also the perfect place to start if you're new or returning to exercise. 2 Exceptional Search Share Walking goals can be ore mie or 100 miles Q Search Exceptional About Us Join the Experianca Panal Author Becky Fuller Modified 24 hours ago Crake Shack/Gred Pictu Spring Cleaning: Why do we do it and how can we do it well? Feeling the urge to declutter and clean for the warmer months ahead? You're not alone. Sarah Harley, hived: 1 min ago If you were asked to name one home based activity we all do in the spring, you can be fairly sure cleaning would be one of the top answers. It's an age old tradition passed clown through the generations. As the seasons change, we still feel an almoet primeval nood. start the new Deacon with a cleanerhouse. As we age, if you already struggle with joint issues from previous injury. or conditions such as arthritis then high-impact cardio activities such as running can have a detrimental impact on our joints, resulting in knee, back or hip issues. So, by reducing impact while still giving your heart and lungs a good workout-is a great idea, and walking can really help. But walking is far more than just something for those looking for an alternative-it's a wonderful wide-ranging activity that will see you join a worldwide community as soon as you start to see yourself as a walker-that it's so easy to begin walking as we've discovered As a personal trainer and fitness instructor I've had first-hand experience of how transformative walking can be. I coached a group of 20 people to walk 30 miles for charity, with nearly half of those aged 50 or over. The group ranged in fitness levels and abilities, from ultra- marathon runners to those who were new to distance walking, including one lady who had just had a baby SAGA TRAVEL INSURANCE GET COMFY IN AN AIRPORT LOUNGE YOUR RIGHTLY VER SAGA SAGA#4343 INTRODUCING Exceptional 1. Great consumer advice. In-depth reviews of products and services for the way our audience wants to use them SAGA Exceptional Menu Homes Health & Fitness Gardens No-dig gardening: your next project? Rosanna Spence Life About Us Q Search Exceptional Join the Experience Panel Exceptional Exercise Walking to improve health Becky Fuller stories about our 2. Iudiering, celebrating the personal brilliance of these generations in a way no one has before Homes Why do we spring clean? Sarah Harley Homest Welcome to Exceptional We've launched a new site to help inspire our readers with. insightful and entertaining content - and we'd love you to join us on our journey. Gareth Beavis Gardens Inspiring decking Rosanna Spence Wellbeing Health anxiety Patsy Westcott Capital Markets Event - Saga's Superbrand Strategy MacBook SAGA#44itv GO.COMPARE THOMSON REUTERS Woman&home HOW IT WORKS REAL techradar HOMES ALL ABOUT tom's guide HISTORY marie claire Woman's GRAND Weekly DESIGNS THE EXPERIENCE BEHIND Exceptional Exceptional.com from Saga is being led by some of the most respected creators in specialist media over the past decade, joining Saga from giants such as Future and TI Media 44 Capital Markets Event - Saga's Superbrand Strategy SAGA#45SAGA MEDIA CONTENT SAGA EXCEPTIONAL WILL BE FOR THEM AND BY THEM A USP for Exceptional.com will be its celebrated over 50s contributors, both from in-house staff and from Saga's panel. Exceptional.com will use these Experienced Voices panelists prominently and visually throughout the site. They'll be integrated into the process in three ways: 1. Before a key review, opinions and questions will be sought about what we should be looking for 2. After the review is finished, we'll pass products to our dedicated Exceptional team for them to add extra, real-life thoughts 3. We'll feature them prominently in video looks, which will be focused on social content as well as appearing on site 45 Capital Markets Event - Saga's Superbrand Strategy SAGA#46SAGA MEDIA PLATFORM PLATFORM TECH OVERVIEW • ос Industry seasoned and feature-rich WordPress CMS Customised product reviews content inputs to maximise efficiency, data governance A world-class user experience Dynamically set banner ad units served via a Google Ad Sense integration and managed in the WordPress platform Developed into a DSP (Demand-Side Platform) integration so that advertisers can bid for ad inventory across the platform An automated retailer link rewrite service displayed clear and inviting check price buttons This will then evolve into an enhanced, geo-targeted retailer link service that determines the user's location and serves them the top three optimal retailer links User Kinsta Hosting MySQL Content management 46 Capital Markets Event - Saga's Superbrand Strategy Cloudflare Global CDN ga Editorial staff Google AdSense Disk File storage for assets Nginx Reverse web proxy Ad system database phpFPM WordPress app Adobe Analytics Google Analytics SAGA#4747 Capital Markets Event - Saga's Superbrand Strategy SAGA MEDIA A COMMITMENT TO EXCEPTIONAL QUALITY We have two clear goals for our audience experience on Saga Exceptional: 1. Within three seconds of arriving on the home page or article, they'll feel like this is a site for them, their corner of the internet 2. They'll leave feeling inspired to try something new or do something better How will we achieve this? Articles informed by in-depth knowledge Best tools from from day one: Engagement measurement SEO performance Productivity management Platform excellence Launch of our first testing centre SAGA#48SAGA MEDIA GROWING A GLOBAL AUDIENCE People over 50 account for roughly a quarter of internet usage Exceptional.com will reach approximately 0.5m users per month by the end of 2023/24 This will grow to c.10m monthly users by 2027/28, generating 136m monetisable sessions over the year We expect to convert c.2% of the new user proportion to registered Saga customers By 2027/28, we expect 60% of the audience to be US-based, which will mean Saga group will be able to market new affiliated products and services to over 400k US Saga customers Audience growth and mix Registered users US users UK users 4.0m 8.0m 48 Capital Markets Event - Saga's Superbrand Strategy 2.0m 0.8m 2023/23 14.0m 2024/25 2025/26 2026/27 2027/28 SAGA#4949 SAGA MEDIA MEDIA AS A FUNNEL FOR GROUP AUDIENCE Known user arrives via Data enrichment workstream Monetisation workstream email Unknown user via a search query A Referred user via an external channel e.g. Facebook Users interact with content, links and advertisements Ads are sold at a lower-yield based primarily on volume On-site behaviours are matched between user sets to create a more defined cohort Users help improve our ability to deliver more targeted content Ads are sold at a higher yield based on better customer data Registration units are introduced to unknown users who have proven stickiness, converting them to known users Group products and services sold. Saga LTV realised Capital Markets Event - Saga's Superbrand Strategy SAGA#5050 SAGA MEDIA AUDIENCE ENGAGEMENT By 2027/28, we will have an effective funnel of engagement, with new users discovering Exceptional.com every month 20% will be a mix of first-time and part-time users, trusting the site enough to make a purchase Further down will be visitors who are Top of funnel - first-time, single-time users 25% Click users - audience with intent, using site to buy Increasing engagement 20% Frequent users, multiple clicks per visit 20% frequent despite arriving through referral channels e.g. search These convert to direct users over time or at least brand direct arriving through an associated page e.g. Facebook channel ⚫ Eventually, these convert to registered users Capital Markets Event - Saga's Superbrand Strategy Direct users, social referrals 25% Registered users 10% SAGA#51SAGA MEDIA HOW WE WILL CREATE VALUE Capital-light, predictable, digital revenue delivered through incredible technology and driven by unmatched data TSAGA Online ads Standard display units charged at CPM • Volume of audience key driver • Identified audience will increase yield • Creative solutions e.g. site takeovers, advertorials for higher yield Newsletter ⚫ Display units sold on newsletter • Sponsored advertorial newsletters Drives affiliate revenue • Sales of Saga products Affiliate • Commission-based revenue from completed transaction of product or service recommended by Saga • Commission either through CPA (most common), CPC, or CPL Brand • Sales of logo/award to product or service that wishes to carry Saga endorsement ⚫ Content also syndicated to other outlets for rev share Events ⚫ Ticket sales ⚫ Exhibitor revenue for stands/event space • Sponsorship revenue for event support ⚫ Sponsorship of awards provided at event Social ⚫ Revenue share of advertising placed on video/content on social channels (AVOD) Traffic driven to Saga site 51 Capital Markets Event - Saga's Superbrand Strategy SAGA#5252 SAGA MEDIA REVENUE AFFILIATE PARTNERS LIBERTY LONDON B&Q O2 dyson Boots Cath Kidston JO MALONE LONDON LONDON Over 50,000 affiliate agreements in place from day one with major brands CLARINS Dunelm HOUSE OF FRASER HOMEBASE SINCE 1849 ao ebay Charlotte Tilbury CLINIQUE do naked amazon Canon Morrisons Whittard CHELSEA 1886 Since 1899 Samsonite NINJA SPENCER MARKS & DELL Cocado LAKELAND Capital Markets Event - Saga's Superbrand Strategy COTSWOLD SELFRIDGES&CO currys outdoor Holland Barrett MOLTON BROWN LONDON Waterstones THE ROYAL MINT Clarks. PANDORA THE ORIGINAL MAKER nectar Robert Dyas WAITROSE & PARTNERS ALDI SIMBA SAGA#53SAGA MEDIA REVENUE ADVERTISING PARTNERS Over 200 advertising agreements in place from day one COTSWOLD Peter Hahn COLLECTIONS Cotton Vax™ TRADERS National Churchill Trust hp Retirement Living groove AquaLift Cosyfeet extra roomy EASY BATHING Lifeboats BHARRINGTON & BYRNE GOLD & SILVER COIN EXPERTS British Heart Foundation SHOREFIELD hayloft Crisis rare | unusual | exciting BEER52 diet CORGI anchor Chef McCARTHY STONE life, well lived ROGERBLACK FITNESS CELTIC & CO. NEVILLE JOHNSON Oakhouse FOODS Gtech Stannah care UK Specsavers Alzheimer's Society Higgins Hidden Hearing United Against Dementia DESIGN WITHOUT COMPROMISE GIORDANO CLIMASTAR silicium technology MILLS & BOON THE HEART OF ROMANCE 53 Capital Markets Event - Saga's Superbrand Strategy SAGA#54INTRODUCING Exceptional Free to everyone No wall between what our customers need and what we can provide Global Taking Saga across the world, opening up vast new opportunities Built on cutting-edge technology The very same used by market leaders New revenue-generative Multiple, high-margin revenue streams Incredible content For people over 50 and by people over 50 54 Capital Markets Event - Saga's Superbrand Strategy SAGA#55INTRODUCING Exceptional And it's live... Today 55 Capital Markets Event - Saga's Superbrand Strategy SAGA#56Web SHACKLETON Video SAGA MEDIA MORE THAN THE WEB Newsletter "I need help to buy and learn about my passions" "I want to feel inspired, connected, and motivated" "I want to be informed on things that matter to me" Magazine "I enjoy reading about things and people I love" Brand "I want Saga to be with me wherever I go❞ And more... Podcasts Television Partnerships Live events 56 Capital Markets Event - Saga's Superbrand Strategy SAGA#5757 SAGA MEDIA EMAIL It's clear our database will be a great advantage for marketing. But what if it was more than that? What if we made email a brilliant content experience too... where our customers could feel informed and inspired in their inbox? • Use content to create a more meaningful experience for our customers Unique advantage with a large pre-existing database • Newsletters successful media businesses in their own right e.g. Morning Brew Black Friday trial exceeded expectations, selling £25k worth of products with the lowest ever unsubscribe rate Passive, siloed Saga customer Great, regular content Improved consent Engaged, Saga Group customer Capital Markets Event - Saga's Superbrand Strategy SAGA#5858 SAGA MEDIA MAKING SAGA MAGAZINE EVEN BETTER Saga Magazine is a key part of our Saga Media plans, as such we want to transform its fortunes, creating an even better experience for our readers and a winning part of the wider business. Experience in everything SAGA AVEARY 2009 magazine Inside JATHE TORVILL SEDENT HESTON BLUMENTHAL FRULLEWIS DR MARK PORTER ANN HURRAY ALAN KOSON TONY BLACKBURN DANNY CLARKE PMS PATALAN PRESS Clive Myrie Master of the roles Bring print to digital and digital to print Own our content Simpler, fairer pricing Migrate to 'Managed Service' model Back in the black in 2023/24 Make one content family at Saga, where great content is enjoyed through all media, giving the magazine a real home online, winning new subscribers Creating content that Saga owns the rights to will mean a much stronger ability to create new print products e.g. a Saga Magazine Annual Better pricing that is fair to all subscribers and much more aggressive messaging of what is, so far, an understated proposition for magazine readers Improving our subscriptions service end to end, so customers have a better experience and the purchasing journey is easier Combining pricing improvements with better marketing and improved cost management will mean we can bring this magazine to profit quickly Capital Markets Event - Saga's Superbrand Strategy SAGA#59SAGA MEDIA TAKING SAGA SOCIAL Getting social right is a crucial part of the Saga Media plan. Audience growth and improved engagement on social platforms will mean: Increased traffic referred to Exceptional.com Monetisation of said engagement on social platforms But now, with our brilliant new content and fantastic talent, we can finally grow our Saga social audience and engage in a way we haven't before. Platform Over 55 UK audience Existing Saga Saga channel Current audience size penetration Target penetration facebook 9.9m Yes 68k 0.7% 40% 4m Instagram 3.3m Yes 4k 0.1% 25% 820k TikTok 0.9m No 20% 180k ►YouTube 67% of all online Yes 2k 0% Current Saga social penetration 59 Capital Markets Event - Saga's Superbrand Strategy SAGA#60SAGA MEDIA AMBITIONS - CONTENT 3,000 50 articles produced every week, increasing to... articles live by the 150 end of 2023/24 Dwell time to exceed industry standard by 2024/25 Pages per session articles every week by 2023/24 25 social posts per week from to improve over competitors by 2024/25 May 2023 60 Capital Markets Event - Saga's Superbrand Strategy 200 videos created and live across multiple platforms in 2023/24 SAGA#6161 SAGA MEDIA STRATEGY GROWTH PROJECTIONS Audience and monetisation 17m 4m 2023/24 2024/25 37m £25m Audience growth forms the basis for monetisation 136m Initially, audience will outpace monetisation as it is the natural priority Over the five years, the rate of monetisation increases from an average yield of £40 to £85 74m Yield will increase as audience volume becomes more attractive to partners It increases further as data enrichment improves and then further still as US more premium commercial partners are unlocked 2025/26 2026/27 2027/28 Audience Revenue Note that all financials are indicative only Capital Markets Event - Saga's Superbrand Strategy SAGA#6262 SAGA MEDIA BIG BUSINESS BENEFITS £50m+ new revenue over five years 30,000 customer interactions per day by end of 2023/24 130m users by 2027/28 at 80% growth rate Over 15m new data points within two years 10m monthly users 5m monthly US users by 2026/27 by 2027/28 £7m+ PBT at 35% margin by 2027/28 £270m+ new revenue over 10 years £40m+ PBT at 65% margin by 2032/33 2027/28 revenue exit rate of 100% Margin CAGR 7% pa from 2027/28 Note that all financials are indicative only Capital Markets Event - Saga's Superbrand Strategy SAGA#6363 SAGA MEDIA 6 REASONS WHY MEDIA IS GREAT FOR SAGA... It delivers on our purpose Saga is here to be a friend to people over 50. Quality advice and inspiring stories delivered to their home, browser, and inbox is the best way to support the people we care about and to win their loyalty High frequency, high engagement Media moves Saga from an annual contact point for our customers to a daily one, involving more of their personal, everyday passions, creating a more emotional bond with our customers Gives Saga a wider reach than ever before No longer limited to those with insurance or travel needs, Saga can reach a larger audience, bringing in millions of new customers and attracting audiences across the globe Media will be a great standalone business A capital-light model, Saga Media will contribute a significant, growing, robust PBT at increasing margins with its own diversified, digital revenues Helps Saga become a superbrand High frequency exposure to high quality content will win audience trust, enabling the Group to acquire for less and retain longer Media audience become Group customers Millions of new website visitors will convert to Group customers, acting as a new, effective funnel for registration and retargeting Capital Markets Event - Saga's Superbrand Strategy SAGA#64SAGA MEDIA ...AND 5 REASONS WHY SAGA IS GREAT FOR MEDIA Exceptional experiences every day Quality matters so much more in media than it used to - it is an algorithmic requirement. A culture and legacy that prioritises being exceptional is a great advantage A famous brand with meaning Saga stands for something and is known for it. It will instantly connect with specific demographics helping them to invest trust in our content Incredible customer data and insight A clearer understanding of customers means better targeted content, more personalised experiences, and better yields from commercial partners Our ambition Saga is transforming into a company that's larger and more diverse than it was before, so it is ready to invest in growing a great media business Our purpose At our core, we want to make the lives of our customers better. A media business with daily, helpful interactions will make this even more possible 64 Capital Markets Event - Saga's Superbrand Strategy SAGA#65SUMMARY Euan Sutherland Group CEO SAGA#66THE SUCCESS OF THE SUPERBRAND • We are committed to, and have already made progress towards, building Saga into 'The Superbrand' for older people in the UK ◆ Insight, Data and Media are crucial to our success • We continue to prioritise what our customers want • Our commitment to developing a high-engagement, high-growth capital-light model is underway • We are developing a more profitable Saga - creating a lifetime value model approach to all of our businesses To do this, we will: ⚫ Grow the size of our customer database • Create a more personalised experience for customers Create compelling reasons for customers to consume three or more Saga products or services Increase the frequency of those interactions to daily 66 Capital Markets Event - Saga's Superbrand Strategy P SAGA#67Q&A SAGA#68APPENDIX SAGA#69SPEAKERS Euan Sutherland Group CEO Appointed as Group CEO in January 2020, Euan has significant experience in leading major consumer- facing businesses, through periods of change, both in the UK and globally. Prior to Saga, he was the CEO of Superdry plc for five years, the Group CEO of The Co- op Group, and Group COO of Kingfisher, the global home improvement group. Lisa Edgar CEO Saga Insight Lisa joined Saga in February 2022 to drive our vision of knowing our customers, and what it means to get older, better than anyone else. Prior to this, Lisa owned and led insight agencies for over 20 years and is a multi- award-winning and published speaker. Lisa is regarded as a leader in the field of what it means to age as a consumer. Michael O'Donohue Chief Data Officer Michael was appointed as Chief Data Officer in October 2022 and is focused on realising the potential in the way Saga uses customer insight to enhance its commercial value. Michael joined from Camelot, where he was Chief Data Officer. He has also held senior positions with Centrica and Tesco, having previously been a consultant with McKinsey and Company. Aaron Asadi CEO Saga Media Aaron was appointed CEO of Saga Media in September 2022 to lead Saga's media and content strategy, designed to increase the frequency and depth of Saga's interaction with customers. Aaron has held a variety of roles in publishing, including Chief Audience and Ecommerce Officer and Chief Content Officer at Future plc. 69 Capital Markets Event - Saga's Superbrand Strategy SAGA