David Walker Head of Procurement & Property Services, Aegon UK

Agenda Introductions Determinants of Change Tender Selection Process Aspirations and Stakeholders Organisational Objectives Strategic Planning Project Organisation and Brief New Collaborative Model Sustainability

Determinants of Change Business transformation challenge Turbulent business environment/ economy/ financial crisis Increasing focus on Risk Management The need for significant and positive long-term impact Sustainability Value for money Improved efficiencies Business performance

Tender Selection Process APS innovative strategic plan and change management process Cultural fit and maturity of supply chain partners Collaborative model “One Team” approach

Aspirations & Stakeholders To do something significantly different that underpinned efficiency, agility, collaboration, quality and value Buy in and inclusion of all stakeholders APS “One Team” Brand APS Strategic Plan Support Aegon’s Global Strategy

Organisational Objectives Support of the overall Aegon Global Strategy Strategic planning and review Auditability Agility and flexibility Return on investment

Strategic Planning Staff structure Information management Reporting/ benchmarking Relationship management Project/ programme management Compliance with policies and procedures Overall – to embed a world-class vision of service delivery

Project Organisation and Brief Consolidate supply chain True outsourced model Synergies from an integrated approach Lean systems and processes Collective “Compliance function” Continuous audit and improvement Knowledge management

New Delivery Structure

New Collaborative Model Extensive market research Key supply chain partners - FES FM and ARAMARK Reduced risk by retaining key relationships Long-term contracts Tender process run in parallel with APS’ internal restructuring Development of the governance model

New Collaborative Model (continued) Strong partnerships formed working in collaboration Lean management structures (AUK – 3 FTE) Creating the APS brand 25% reduction in discretionary spend of Property Services budget Significantly improved risk management and compliance Continuous monitoring/ audit of service delivery

New Collaborative Model

New Collaborative Model

New Collaborative Model

Sustainability Pursuit of ISO Standards had to become part of ‘business as usual’ activity Integrated Management System Environment Management System accredited to ISO14001 standards Health and Safety System currently compliant with OHSAS18001 standards Future aspirations working towards further ISO accreditations Partnerships working to reduce environmental impacts APS now responsible for all waste streams Enhanced performance of Aegon’s health & safety and environmental performance Recognised as a leader within Aegon’s worldwide group – supporting other country units

Head of Procurement & Property Services Thank you for your time David J Walker Head of Procurement & Property Services Aegon UK