SAGA Investor Update

Insurance goodwill impairment expected of £370m due to an increase in the pre-tax discount rate from 9.6% to 12.6% • Accounting standards require an annual impairment test for goodwill • Goodwill assessment is based on latest internal plans and cash flow projections - Underlying cash flows little changed from the prior year including allowance for further risk Exclusion of all benefits from future profit improvement initiatives Anticipated cost savings fully excluded from the current year calculation The discount rate applied in the goodwill calculation has increased significantly Pre-tax discount rate increased from 9.6% to 12.6% - Mainly due to updated external market inputs, reflecting the lower share price New discount rate reduces insurance valuation by £320m COVID-19 is not expected to lead to a further insurance goodwill impairment Recent share price is not expected to have a further impact Long-term insurance plans expected to be largely unaffected SAGA Investor update 2 April 2020 26

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