Saga : 2023 Annual Report And Accounts

SAGA PLC

ANNUAL REPORT AND ACCOUNTS 2023

DELIVERING FOR

OUR CUSTOMERS

Saga's purpose is to deliver exceptional experiences every day, while being a driver of positive change in our markets and communities.

At the heart of our business model is the drive to understand our customers' needs so that we can provide them with the products and services they want and the exceptional experiences they deserve.

Our aim is to become the largest and fastest-growing business for older people in the UK, 'The Superbrand' famous for delivering exceptional experiences every day, building confidence and connections with our customers.

Our key performance indicators

Underlying Profit/(Loss) Before Tax1	Loss before tax
£21.5m	(£254.2m)
2021/22 - (£6.7m)	2021/22 - (£23.5m)
Available Operating Cash Flow1	Net Debt1
£54.9m	£711.7m
2021/22 - £75.8m	2021/22 - £729.0m
Colleague engagement	Customer net promoter score
8.0 out of 10	51
2021/22 - 7.7 out of 10	2021/22 - 49

1 Refer to the Alternative Performance Measures Glossary on page 209 for definition and explanation

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Chairman's Statement

A statement from our Chairman, Sir Roger De Haan, outlining his view of the year.

It is evident to me that there is a tremendous opportunity for Saga to broaden its services to its customers, reduce its debt, enlarge its business and increase its profitability and that the Company is now well placed to take advantage of this."

Sir Roger De Haan

Non-Executive Chairman

Alternative Performance Measures

In addition to statutory performance measures, the Group also measures performance using Alternative Performance Measures. These are reconciled to statutory measures of performance on page 56 of the Group Chief Financial Officer's Review and defined in full on page 209.

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Group Chief Executive

Officer's Statement

Euan Sutherland, Group Chief Executive Officer (CEO), summarises the 2022/23 financial year.

Strategic Report

Strategic report

Overall, I am pleased with the progress made during the year as we began to make the strategic pivot towards becoming a capital-light marketing, content and distribution business."

Euan Sutherland

Group Chief Executive Officer

Watch our Group CEO, Euan Sutherland, outlining our vision and three-step growth plan

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Group Chief Financial

Officer's Review

James Quin, Group Chief Financial Officer (CFO), details our operating and financial performance for the year ended

31 January 2023.

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Our strategy

Details of our three-step strategic plan, aimed at returning Saga to sustainable long-term growth.

Although the last 12 months have been challenging in both Insurance and Travel, the Group returned to an Underlying Profit Before Tax1."

James Quin

Group Chief Financial Officer

1. The year in review

1. Saga at a glance

1. Chairman's Statement

1. Group Chief Executive Officer's Statement

1. Key performance indicators

1. Market review

1. Purpose and business model

1. Engaging with stakeholders

1. Our strategy

1. Environmental, Social and Governance

1. Group Chief Financial Officer's Review

1. Risk management

1. Principal risks and uncertainties

1. Viability Statement
2. Key disclosure statements

Governance

Corporate Governance Statement

1. Application of UK Corporate Governance Code
2. Chairman's introduction to governance

74 Board of Directors

1. Governance at a glance

1. Board activities

1. Board leadership and Company purpose
2. Division of responsibilities
3. Composition, succession and evaluation
4. Nomination Committee Report

1. Audit Committee Report

1. Risk Committee Report

Directors' Remuneration Report

92 Annual Statement

96 Remuneration at a glance

1. Annual Report on Remuneration

1. Directors' Remuneration Policy

124 Directors' Report

1. Statements of responsibilities
2. Independent Auditor's Report to the

Members of Saga plc

Financial statements

Consolidated financial statements

1. Consolidated income statement
2. Consolidated statement of comprehensive income
3. Consolidated statement of financial position
4. Consolidated statement of changes in equity
5. Consolidated statement of cash flows
6. Notes to the consolidated financial statements

Company financial statements of Saga plc

1. Balance sheet
2. Statement of changes in equity
3. Notes to the Company financial statements

Additional information

1. Alternative Performance Measures Glossary
2. Glossary

213 Shareholder information

Governance

Financial statements

Additional information

1 Refer to the Alternative Performance Measures Glossary on page 209 for definition and explanation

Saga plc Annual Report and Accounts 2023  3

STRATEGIC REPORT

The year in review

DEMONSTRABLEPROGRESS

Saga is emerging from the pandemic, focused on returning to growth

Underlying Profit Before Tax1

£21.5m

Return to underlying profit as Cruise and Travel recovery continued

Following an extended period of uncertainty, initially with the pandemic and more recently geopolitical and macroeconomic uncertainty, Saga reports an Underlying Profit Before Tax1 of £21.5m after returning to more normal Cruise and Travel operations.

Acquisition of the Big Window to strengthen our insight and understanding

In February 2022, we announced the acquisition of the Big Window, a specialist research and insight business focused on the ageing process. This move allows us to ensure we are developing the products and services our customers want and need.

Launch of our three-step growth plan

To build on the foundations laid over the past two years and return Saga to sustainable growth, we launched our three-step strategic growth plan, focused on maximising our existing businesses, step-changing our ability to scale while reducing debt and creating 'The Superbrand' for older people.

Watch our Group CEO, Euan Sutherland, outlining our growth plan

1 Refer to the Alternative Performance Measures Glossary on page 209 for definition and explanation

4Saga plc Annual Report and Accounts 2023

Introduction of Saga Media

As part of our ambition to become 'The Superbrand' for older people, we introduced Saga Media, aimed at providing digital media that represents the needs and interests of people over 50, giving them great advice, inspirational stories and a place where they are heard and valued.

Watch the launch of Saga Media at our Capital Markets Event

Launch of new digital

Travel business

In the first half of the year, we combined the operations of Saga Holidays and Titan Travel to create the UK's largest and market-leading touring business. We also moved away from a largely paper brochure-based approach to a digital business, with dynamic pricing and an enhanced website and booking platform.

Strengthened leadership team in support of our growth plan

We were pleased to announce six new senior appointments to support the delivery of our strategy and accelerate growth. Peter Bazalgette, Gemma Godfrey and Anand Aithal all joined the Board, alongside three additions to the Executive Leadership Team to drive the areas of Money, Media and Data.

Strategic report

Governance

Financial statements

Additional information

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