Standard Life (SDLF) investor relations material

Executive summary

• Achieved strong H1/HY26 results, with 6% growth in Operating Cash Generation (OCG) and 25% growth in IFRS adjusted operating profit year-over-year, maintaining momentum toward 2026 financial targets.

• Strategic momentum driven by the £2bn Aegon UK acquisition and new UK PRT partnership, expanding scale, customer reach, and capabilities.

• Enhanced customer engagement, high client retention, and innovative product launches underpin growth across Workplace, Retail, and Retirement Solutions.

• Execution of strategic priorities has enhanced financial flexibility, supporting investment in growth and strong shareholder returns.

Financial highlights

• Operating Cash Generation reached £745m (+6% YoY); total cash generation £900m (+15% YoY); IFRS adjusted operating profit £563m (+25% YoY).

• Interim dividend per share increased 2.6% to 28.05p; total dividend payments reached £1.4bn in this strategy phase.

• Solvency II coverage/capital ratio at 169%, with leverage ratio improved to 29% after £0.5bn debt redemption.

• Assets under administration (AUA) grew 7% year-to-date to £226bn, with average AUA for Pensions and Savings at £217bn and Retirement Solutions at £42bn.

• IFRS loss after tax was £179m, primarily due to adverse economic variances from hedging.

Outlook and guidance

• On track to achieve all 2026 financial targets: mid-single digit OCG growth, £5.1bn total cash generation (2024-26), SCCR within 140-180%, SII leverage ratio ~30%, and £1.1bn IFRS adjusted operating profit.

• Cumulative run-rate cost savings of £210m achieved, targeting £250m by end-2026; cost savings underpin margin improvements.

• Post-2026, capital allocation will focus on growth and shareholder returns, with updated guidance to be provided in November.

• Progressive and sustainable dividend policy maintained, with excess cash allocated to high-return opportunities.