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wtwco.comPension reportStatus and trendsApril 2023

As a client of WTW you should know that we work to... – create transparency to help organisations and employees make the decisions that are best for each organisation and each employee– bring our impartiality to clients so they can be conident that all decisions are based on what is best for the organisation and its employeesThe need for transparency and impartiality has never been greater – just as it is also extremely important that we are proactive and that our services are available to all sizes of organisation and all employees – regardless of income and wealth. Too often we see that employees with lower incomes do not receive the same advice on their pension schemes as employees with higher incomes. That is not our approach. On the contrary we believe that advice investment and other decisions are equally important for everyone regard-less of what is on their payslip.However we cannot provide our advisory services completely free of charge. We have developed many tools and methods to motivate employees to take active decisions about their pension scheme and therefore compa-nies should see the cost of such advisory as an investment in the well-being and inancial security of their employees. Our remuneration is very visible – and we prefer it like that as it is natural for us to be transparent. The costs of pension companies are somewhat more dificult to understand. Of course we help with that too and we negotiate with and on behalf of clients to max-imise transparency and get the pricing right when looking at the overall value proposition.The war in Ukraine – now lasting over a year – has brought with it inlation and increased uncertainty. Rising interest rates and energy prices are putting Creating well-being in challenging times FOREWORD

pressure on wage developments but also on individual employees' person-al inances. In addition many employees impacted by stress also have con-cerns about their inances. Primarily for these two reasons we have developed a new service set-up where we provide overall advisory and guidance on the employee's personal inances through our Financial Wellbeing concept. As part of the concept personal inancial advice can be offered through individual advisory sessions. The advice can be used both as a general optimisation and a beneit offer to employees but can certainly also help employees whose personal inances are under pressure.Another addition is our Private Clients team focusing on advising monitor-ing and optimising private pension schemes that are not part of the company scheme. This concept has got off to a lying start as more than 25% of all pension schemes in Denmark are private schemes many of which are not optimised. We can now help with that too.As mentioned we focus on our core business which is optimising pension schemes and advising employees but we are expanding with relevant servic-es – all structured around our impartiality.Other exciting developments include our work on a technological plat-form for employees to view and monitor their pension scheme run calculator simulations and search for other relevant services. We are working to bring WTW's international competences across the entire investment spectrum into play in an environment of impartial individual advice. We ex-pect a lot from that.Please give us your honest feedback on our coop-eration – we are here for you and we are constantly striving to improve. So please let us know if there is anything we can help you with or anything we can improve. Our business is part of what globally we refer to as Health Wealth & Career (HWC) so we have a wide range of competences and capabilities in our business and can support you in areas other than the pension scheme itself. Please give us a call – we might be able to help.Hope you have a great year.Lars ChristensenCo-CEO WTW Denmark Head of Health Wealth & Career FORORD

CONTENTSThe pension market 6Health insurance 10Investment strategies and products 12Investment performance of pension companies 16Responsible investment 20Client satisfaction 24Net Promoter Score – satisfaction measurement 26Claims processing 28Webinars 30Health and well-being 32Leadership development 34Seniors in the labour market 36Personal inancial well-being 38Management of private savings 40Risk counselling 42Staff beneits health and well-being 46Insurance Solutions 48

2022 has been a challenging year in the pen-sion industry. From the beginning of the year the Russian invasion of Ukraine has been in the headlines and the inancial consequences have proved to be very signiicant – including for the Dan-ish pension industry. In addition to managing and adapting to the in-ternational boycott of Russia the overriding theme has of course been the massive losses that all pen-sion funds have suffered on their investments. Vir-tually all asset classes have shown negative results throughout the year and as a result almost all cli-ents – regardless of their choice of risk proile – have experienced signiicant losses on their pension sav-ings. Later in this report the background to the invest-ment performance of pension companies is ana-lysed in more detail. In a world of falling equity pric-es and rising interest rates few people have been spared. On a more positive note there are many indica-tions that over the course of 2022 and up until now the coronavirus pandemic has inally loosened its grip on Danish society – and thus also on the pen-sion industry. Like the rest of the economy the pen-sion industry has devoted considerable resources to adapting to a new way of working. All pension companies have been busy devel-Nicolai OlsenPractice LeaderThe pension market has become more complexTHE PENSION MARKETWith preventive measures, pension companies hope to avoid significant price increases and having to tighten payout criteriaPension report │ 7

oping offers to meet the challenges posed by the pandemic. Among other things there has been an increased need for psychological counselling via hotlines and many clients have seen their health in-surance premiums rise.Impact of the SUL Order 2022 was the irst year in which the pension indus-try had to comply with the new rules of the Danish Financial Supervisory Authority's so-called SUL Or-der (SUL is short for sickness and accident insur-ance – "Syge- og Ulykkesforsikring" in Danish). The SUL Order is the Danish Financial Superviso-ry Authority's response to the fact that all pension companies have been taking systemic losses on their insurance operations for a number of years. The new rules will force companies to better bal-ance their income and expenditure. As a consequence of the SUL Order WTW is al-ready experiencing upward pressure on insurance prices. At the same time however it can be ob-served that competition in the corporate pension market continues unabated but has now shifted from insurance prices to cash subsidies and dis-counts on investment costs. Some pension companies have become much more willing to offer substantial discounts on in-vestment costs while others are ready to make sig-niicant annual contributions to employees' pen-sion schemes. Discounts and subsidies are given as 'com-pensation' for the increased insurance pric-es and are paid out of the pension compa-nies' own funds so they do not count in the insurance accounts.Unfortunately WTW notes that in many cases the SUL Order has resulted in higher overall costs for employees and the company – and thus higher earnings for the pension companies on the individ-ual client. A more complex pension marketPension companies are being creative in compen-sating for price increases which has made the pension market more complex. There is no doubt that it has become more difi-cult to compare the offers of pension companies as an increase in discounts on investment costs and cash contributions in itself leads to a change in cost pressures between different groups of em-ployees. At WTW we are aware of the challenges that follow in the wake of pension companies adjust-ing their competitive parameters. We will continue to push for transparency and negotiate hard with companies on all parameters to maximise econom-ic value for our clients. Increased activity due to rising pricesIn the wake of the SUL Order and rising prices there has also been increased activity in the pen-sion market. Many companies have been presented with large price increases by their pension company when their current pension agreement is up for re-newal and as a result many of them choose to put their existing solution out to tender. By exposing the pension scheme to market competition the company can be sure that its em-ployees are offered the most attractive scheme with the best available prices and conditions in the market. It is WTW's expectation that more companies will want to open up their pension contracts to competition as the pre-2022 contracts and price guarantees start to approach their expiry date in the near future. Unfortunately, WTW can see that in many cases the SUL Order has resulted in higher total costs for employees and the company – and thus higher earnings for the pension companies on the individual client8 │ WTW

Like the other pension companies your provider Danica Pension has been impacted by the turmoil in the inancial markets in 2022. Falling equity prices and rising interest rates have proved a toxic cocktail for all pension companies. Increased prices for tenders and renewalsIn relation to insurance prices and the SUL Order Danica Pension announced early on that the com-pany does not need to make more money from its clients. Nevertheless WTW is now inding that as expected Danica Pension is increasing insurance prices in connection with tender rounds and renew-als of existing pension agreements. However we also see Danica Pension as some-what willing to allow increased insurance prices to be accompanied by discounts and subsidies – at least for select clients. 6000 clients to be compensated for errorsFor Danica Pension the end of 2022 was dominated by an unfortunate case concerning de-risking in one of the company's investment proiles. The error concerned the way the risk is phased out in Danica Balance. In practice de-risking works by starting to de-risk the savings from a certain point 20 to 30 years before retirement age. Instead of risky assets savings are shifted towards invest-ments – typically bonds with lower expected risk – and also lower expected returns. In one product – Danica Balance with a balance guarantee – the risk reduction has been planned based on a point in time that is earlier than the retirement age. This therefore implies that Danica Pension has withdrawn from risk at too early a stage and that the affected employees have therefore missed out on returns because their pensions have been invest-ed too cautiously. Danica Pension's own estimate is that approxi-mately 75000 clients have been affected by the error and that 6000 of these are eligible for com-pensation. New CEO on the wayInternally Danica Pension has announced that as of 1 November 2023 the company will have a new CEO in Mads Kaagaard who has been a member of PFA's Executive Board for the past seven years. The announcement comes after a year of man-agement changes in which the company's CEO Ole Krogh moved to a similar position in PFA Pension and was replaced by Søren Lockwood who in 2022 was irst appointed interim CEO and later perma-nent CEO. Mr Lockwood will be replaced by Mads Kaagaard in November.Danica Pension Pension report │ 9

HEALTH INSURANCEHealth insurance and prevention have not al-ways been linked but developments have shown that it is necessary for prevention to become a much more important part of the health dialogue between WTW and our corporate clients – preferably in close cooperation with the company's pension or health insurance provider. In recent years WTW has generally pressured companies to develop prevention initiatives and it has also been part of our agenda to challenge our clients on their health insurance claims records as the general trend is towards more and more claims. A structural approach is needed where preventive measures must be embedded in the existing frame-work and conditions – and consideration needs to be given to how different aspects of work inluence the measures and their impact. Preventive measures should not be dependent on the resources and mo-tivation of individual employees. Health should be viewed in a broad sense including physical mental and social aspects and not just be about absentee-ism due to illness. Pressure on treatment optionsIn the claims handling and day-to-day management of our clients' health insurance policies we are seeing an increasing use of the physical and men-tal health treatment options that companies make available to their employees. This trend has been reinforced by the fact that it is now often possible to get help and treatment from a physiotherapist or osteopath without necessarily having to go to a GP irst. In other words access to treatment has become much faster and easier.It is extremely positive that companies and em-ployees are aware of the possibilities offered by their health insurance – and that the process of get-Lars RusomPractice LeaderIncreasing pressure on health insurance calls for preventionThe organisation should consider whether preventive action can reduce the number of injuries in order to create a positive development in each workplace 10 │ WTW

ting treatment when needed is quick and smooth. The organisation should consider whether preven-tive measures should be initiated or whether an ex-isting effort is having the desired effect. The starting point should be to reduce the number of injuries and create positive developments in the workplace. This will both beneit employee well-being and im-prove the company's claims record and negotiating position with the health insurance provider. Another aspect is that unfortunately there is also a sharp increase in reports of mental and psychiat-ric disorders. The increase not only takes place for employees but also for covered children and asso-ciated spouses or cohabiting partners. The public health system is under great pressure from this type of inquiries and waiting times for psychiatric as-sessment in particular are very long. This is a worry-ing development which in the long term may also be dificult to fully support on the private market if consideration is not given to prevention and early help and counselling. Digital solutions Some of the digital opportunities that are starting to emerge in the market may be part of the solution to the challenges posed by the high number of claims. Digital solutions with hotlines and online consulta-tions have become popular complements to health insurance. WTW is seeing a great deal of interest in for ex-ample Online Doctor which has become very pop-ular in a short time. Almost all pension and insur-ance companies have some sort of solution for this offering it through the pension company itself or as a solution through the insurance company and the offered health solutions. Other online initiatives now include the possibili-ty to refer to a psychologist physiotherapist and di-etician. All in addition to traditional treatment. Both organisations and employees are positive about these new electronic options as long as they do not stand alone or replace traditional physical and men-tal health treatment options. The digital options and solutions are easy to ac-cess – and they can help get employees and any family members diagnosed more quickly so that treatment can begin. Together with preventive measures in the long term this can help improve well-being and take some pressure off health insur-ance. High interest in dental insuranceSince 2020 when dental insurance became a permanent part of the collective agreements un-der the Financial Sector areas we at WTW have found that many of our clients have shown great interest in being able to offer dental insurance to employees. WTW has been approached by large medium-si-zed and small companies curious about the price and coverage of such insurance. The individual company sees it as an opportunity to strengthen its position as an attractive work-place with dental insurance as a supplement to the rest of the employee beneits programme in the pension scheme. We have yet to see a major breakthrough in the private labour market but the growing interest clearly shows that help with dental bills is popu-lar and associated with great relief in everyday.

WTW is your impartial pension broker and our task is to monitor the Danish pension mar-ket on your behalf – including Danica Pen-sion your pension provider. We will briely review the pros and cons of Dan-ica Pension's investment products the work on re-sponsible and sustainable investments and Danica Pension's investment performance compared to the rest of the industry. Danica Pension's investment products Like the other pension companies Danica Pension offers a number of different investment options giv-ing its clients a wide choice.Danica Balance – a lifecycle productDanica Balance is Danica Pension's primary invest-ment product. Danica Balance is a lifecycle product which means that the investments are composed according to the client's expected retirement date – the longer until retirement the greater the share of equities.Danica Balance Ansvarligt Valg ('Responsible Choice') – a lifecycle product In October 2020 the strong interest in responsi-ble green and environmentally sound investments prompted Danica Pension to introduce Danica Bal-ance Ansvarligt Valg a lifecycle product similar to Danica Balance but with a special focus on green in-vestments. The investments are designed to reduce Investment strategy and productsDANICA PENSIONBo HenriksenInvestment Analyst

CO2 emissions and focus on supporting the green transition. Among other things this means not in-vesting in fossil fuel equities such as oil and gas.Danica Pension expects the long-term return on sustainable investments to be on a par with the or-dinary investments in Danica Balance but as Danica Balance Ansvarligt Valg has only been in existence for a few years it is still too early to conclude wheth-er this target is achievable. It is possible to have both Danica Balance and Danica Balance RAnsvarligt Valg on the same policy number at no additional cost.Other investment opportunities in Danica Pension In addition to Danica Balance and Danica Balance Ansvarligt Valg it is also possible to get Danica Bal-ance funds with different levels of equities. In these funds the share of equities is constant so there is no automatic de-risking.Danica Link is another option. Here you can put together your own investment portfolio from around 30 different funds. Finally Danica Pension offers the product Danica Select. A unique solution that allows you to invest in individual equities bonds and funds from all over the world. To be eligible for Danica Se-lect the deposit value in Danica Pension must ex-ceed DKK 1 million or the annual pension contribu-tion must be at least DKK 100000.Basic elements of the investment strategyOne of the key principles of investing is that there should be a good spread of risk – all eggs should not be put in one basket. Pension companies try to live up to this principle by investing clients' money in three main asset classes – equities bonds and alternative investments. Equities Equities are the asset with the highest expected re-turn but at the same time they are also the asset with the highest risk. The proportion of equities in a portfolio ultimately therefore determines the level of risk. The total equity component consists of global equities listed on developed markets such as the Danish American European or Japanese markets emerging market equities listed on less developed markets such as the Chinese Indian or Brazilian markets and inally private equity which consists of unlisted shares. Bonds Bonds are usually a very stable asset in a portfolio but the expected return is also lower than for eq-uities. Note however that bonds experienced un-characteristically large price declines in 2022 due to the sharp rise in interest rates. The bond portfolio consists of Danish and for-eign government and mortgage bonds as well as investment grade bonds. The latter are bonds is-sued by companies with a good credit rating. In addition the portfolio also consists of high yield bonds issued by companies with a less fa-vourable credit rating. Due to the slightly lower credit rating and thus higher risk interest rates on high yield bonds are higher than on other types of bonds.Finally there are emerging market government bonds – that is bonds issued by less developed countries. Here the risk is high but as with high yield bonds the interest rate is correspondingly high.Alternative investments Up to 2022 we had a number of years with very low interest rates in society and thus also a very low real interest rate on bonds. This prompted pension companies to look for alternative investments that had the same risk proile as bonds but with better return prospects. Alternative investments are unlisted assets divid-ed into property investments (both residential and commercial buildings) infrastructure (e.g. wind farms or construction projects) and hedge funds which are funds that can invest in both equities and bonds depending on the market outlook. In principle private equity – the unlisted shares mentioned above – is also an alternative invest-ment but this asset class counts towards the equi-ty share in this context. It is possible to have both Danica Balance and Danica Balance Ansvarligt Valg on the same policy number at no additional costPension report │ 13

Danica Balance Ansvarligt ValgThe equity portfolio in Danica Balance Ansvarligt Valg ('Responsi-ble Choice') is both actively and passively managed. Danica Pension has actively selected approximately 50 companies that the pension company believes are well positioned to contribute solutions to the sustainability challenges. The passively managed part consisting of around 650 equities is there to ensure proper risk diversiication. However Danica Pen-sion has ESG-screened the index that is tracked based on various sustainability factors and excluded equities that do not meet the requirements. Therefore there is also a strong focus on ESG in the passive equity portfolio. The bond portfolio is invested in both green and social bonds. According to the Danica Balance Ansvarligt Valg strategy bonds are only investable if the proceeds are used to inance green projects with clear environmental beneits or projects with social objectives – e.g. reducing inequality or raising living standards.Alternative investments typically consist of unlisted shares or bonds. The alternative investments must also fulil ESG criteria in-cluding climate health and other social criteria in order to be in-vestable.Danica BalanceDanica Pension has chosen an investment strategy for Danica Bal-ance in which approximately 70 per cent of Danish and global eq-uities are managed by internal managers. Danica Pension believes in the Danish economy and the company's knowledge of local con-ditions which is why it has a solid overweight of Danish equities. When it comes to emerging market equities Danica Pension has left 80 per cent of the portfolio to external managers. This makes particular sense when it comes to equities in for example the Far East where local investment experts have a better understanding of local conditions. Danica Pension's bonds and property are managed exclusively in-house while the majority of credit bonds and alternative invest-ments are managed by external managers. Danica Pension believes in active management i.e. the company expects to generate a return that outperforms the market in general by analysing and selecting equities that are seen to have particular potential. Passive management therefore covers only a very small part of the portfolio. Danica Balance's equity portfolio consists of approximately 1400 different assets while alternative investments make up an average share of the portfolio compared with other pension companies. Danica Pension's strategic asset allocation as at 31 December 2022 in Danica Balance (medium risk scenario with 15 years to retirement) Danica Pension's strategic asset allocation as at 31 December 2022 in Danica Ansvarligt Valg (medi-um risk scenario with 15 years to retirement) Investment allocation – asset classesGovernment and mortgage bonds 18%Investment grade bonds 5%High yield bonds 5%Emerging markets government bonds 4%Total bonds 32%Global equities 45%Emerging markets equities 7%Private equity 6%Total equities 58%Infrastructure 3%Properties 7%Hedge funds 0%Total alternative investments 10%Investment allocation – asset classesGovernment and mortgage bonds 21%Investment grade bonds 5%High yield bonds 2%Emerging markets government bonds 2%Total bonds 30%Global equities 46%Emerging markets equities 8%Private equity 5%Total equities 59%Infrastructure 4%Properties 7%Hedge funds 0%Total alternative investments 11%14 │ WTW

As a rule of thumb pension savings should be in-vested with less and less risk as the investment hori-zon shortens. Danica Pension and the other pension companies therefore offer lifecycle products where the share of equities is automatically reduced the closer you get to retirement. It is important to note that the automatic reduc-tion of the equity share varies greatly from one pen-sion company to another so caution should be exer-cised when making direct comparisons.Figure 1 shows how the share of equities in the lifecycle products of different pension companies is phased down towards retirement (year 0). The in-vestment proiles shown all have a medium risk pro-ile with the remainder of savings invested in the safer assets – bonds and alternative investments. The igure shows that Danica Balance and AP Pen-sion have a somewhat higher share of equities than the other products when there are many years to retirement but that the two companies begin the de-risking process quite a few years earlier. Con-versely Velliv and PFA have the lowest equity hold-ings at the beginning of the savings period but be-gin their de-risking signiicantly later. Note also that several of the companies continue the de-risking after pension payments have started.It is therefore to be expected that pension com-panies with a high share of equities will perform best in periods of equity market upturns and conversely the same companies will be hit hardest in periods of downturns or crises.Because of the wide disparity WTW needs to compare the investment performance of pension companies using different methodologies that look both at the fundamental management ability of the company but also at the simple fact that there are differences in the risk of the portfolios. This is analysed in more detail in the report's arti-cle on the investment performance of pension com-panies.0%20%40%60%80%100%40 35 30 25 20 15 10 5 0 -5Percentage of stocksYears until retirementAP Active Danica Balance Nordea Profilpension PFA Plus Velliv Vækstpension AktivDe-riskingFigure 1. Lifecycle de-risking in medium risk proilesPension report │ 15

The main purpose of a pension scheme is to build up savings so that we have something to live on when we retire from the labour market. Investment and return on current contributions are therefore important parameters for optimising sav-ings for the day we retire.One of WTW's main tasks is to continuously mon-itor and compare the investment performance of pension companies in order to optimise clients' sav-ings.High inlation led to sharp increases in interest rates Inlation surged in early 2022 and when inlation gets too high central banks typically raise interest rates. Interest rate hikes have a negative impact on both equities and bonds. In 2022 the Federal Reserve raised interest rates several times and in July the inlation curve inally peaked. US inlation peaked at 9.1 per cent in June and has subsequently declined month on month. The market has read this as a sign that the rate hikes have started to work but there is still some way to go to reach the oficial inlation target of 2 per cent. Danish inlation stood at 8.7 per cent at the end of 2022 while US inlation ended at 6.5 per cent. Most market analysts therefore expect interest rates to continue to rise for some time. Everyone has suffered losses on pension savings Rising interest rates have made 2022 a loss-mak-ing year for the vast majority of assets. Emerging markets and technology equities lost around 18-20 per cent of their value while Danish equities fell by around 13 per cent. The only type of equities that Big losses for pension savers in 2022INVESTMENT PERFORMANCE OF PENSION FUNDSBo HenriksenInvestment AnalystWith losses on both equities and bonds there has been nowhere to hide in 2022 – everyone has lost on their pension savings regardless of the pension provider or risk proile chosen16 │ WTW

Figure 2. 2022 return – medium risk scenario with 15 years to retirement-11.4%-7.2%-13.3%-15.1%-9.7%-6.7%-10.4%-10.5%-12.4%-12.4%-15.5%-15.8%AP ActiveAP BæredygtigDanica BalanceDanica Balance Ansvarligt ValgNordea ProfilpensionNordea Profilpension MixNordea FormålspensionPFA PlusPFA Klima PlusVelliv VækstPension AktivVelliv VækstPension IndexVelliv VækstPension AftrykPension report │ 17

119.2%110.5%129.2%99.3%93.5%84.5%70.9%75.0%79.6%93.5%50.1%51.3%57.0%55.4%65.3%30 years until retirement 15 years until retirement 5 years until retirementFigure 3. Returns over 10 years with 30, 15 and 5 years to retirement in a medium risk scenario (2013-2022)7.4%7.0%8.1%8.5%7.7%5.8%5.5%6.7%6.3%6.2%4.4%4.0%5.1%5.0%4.3%30 years until retirement 15 years until retirement 5 years until retirementFigure 4. Annual risk-adjusted return with medium risk (2013-2022)18 │ WTW

performed well in 2022 were oil and energy which surged on the back of the war in Ukraine. The rises in interest rates also hit bond prices. Long bonds are the most sensitive to interest rates and therefore fell by more than 19 per cent and in general the loss on bonds has been similar to the loss on equities. Alternative investments are very stable and have therefore yielded a small but positive return in 2022. With losses on both equities and bonds there has been nowhere to hide in 2022 – everyone lost on their pension savings regardless of the pension pro-vider or risk proile chosen. Figure 2 shows that the best-performing lifecycle products in 2022 are those with the largest share of so-called alternative investments such as property and infrastructure. This has been one of the reasons why AP Sustainable and Nordea Pension Proile Pen-sion Mix have had the least poor returns. Figure 2 also shows that the sustainable invest-ment products Danica Balance Responsible Choice Nordea Purpose Pension PFA Climate Plus and Vel-liv Growth Pension Footprint performed worse than the corresponding ordinary lifecycle products. One of the reasons for this is that the sustainable invest-ment products cannot invest in fossil fuels which was one of the few places where there was a good return to be had in 2022.Still a good result over 10 years Pension investments typically take place over a longer time horizon – partly because there are a certain number of years until retirement and part-ly because the part of the savings that has not yet been paid out will still be invested when we leave the labour market. Therefore it also makes sense to compare returns over different and preferably slightly longer invest-ment horizons. Despite the fact that 2022 has been a very bad year for inancial markets the situation is fortunately better when returns are spread over a longer period of time. Over the last 10 years inancial markets have fa-voured lifecycle products where employees can choose how much risk they want to take in invest-ing their pension savings. Historically it has been shown that the higher the risk taken the higher the return achieved.Figure 3 shows returns over a 10-year period for medium-risk lifecycle products with 30 15 and 5 years to retirement. It is clear that the longer the time to retirement the higher the share of equities – and hence the higher the return. In other words the longer your investment horizon the higher your equity exposure should be. The igure shows that AP Pension and Nordea Pension have performed best in the long term with 30 years to retirement while Velliv has been best in the short term. Risk-adjusted returnAs shown in Figure 1 in the article on the investment strategy of pension funds medium risk in one pension fund is not necessarily the same as medium risk in another pension fund. The number of shares held in portfolios can easily vary and so can the level of risk.Therefore in addition to comparing nominal re-turns it makes sense to compare risk-adjusted re-turns. That is to consider the investment risk (stand-ard deviation) that the pension company takes in order to generate a return. This will equalise the difference in asset allocation found in the lifecycle products and therefore make the proiles more com-parable.As shown in igure 4 PFA and Nordea Pension deliver the highest returns across all three periods. Velliv which was doing very well in terms of nomi-nal returns is now in the middle of the pack. It can therefore be seen that the risk-adjusted return pro-vides a different 'ranking' of the companies' ability to generate a return. Despite the poor investment year of 2022 investors have still received quite favoura-ble annual returns over the past 10 years. This is the argument in favour of always looking at longer horizons when comparing returns – and not being deterred by what we hope will be a single bad year in inan-cial markets.WTW regularly offers webinars that provide insight into the possibilities of investing your pension sav-ings with the ive commercial pension companies – AP Pension Danica Pension Nordea Pension PFA and Velliv – as well as webinars on the pros and cons of sustainable investments. Learn more at wtw-event.dk.Pension report │ 19

The task of creating a better global environment is beyond the capacity of individual countries. It has been clear from the outset that the task can only be achieved through extensive and com-mitted international cooperation. Danish pension companies have therefore already been party to several international environmental agreements for a number of years. All pension companies have thus integrated the 10 principles of the UN Global Compact into their investment process – principles that include ac-countability in the areas of human and labour rights environment and anti-corruption.ESG – all types of responsible investment Denmark like a number of other developed coun-tries has been quick to pounce on the ESG area. With every political party having an environmental policy business and the pension industry are also being incentivised to take action – sustainability has simply gone 'mainstream'. ESG is an umbrella term for all pension fund in-vestments that have a responsible purpose – not only in the areas of environment and climate but also with a focus on social and labour issues.The strong focus on ESG has resulted in all ive RESPONSIBLE INVESTMENTSThe green investment productsBo HenriksenInvestment Analyst

commercial pension companies in Denmark now of-fering a special sustainable lifecycle product as an alternative to the regular lifecycle products. The two types of lifecycle products generally have the same automatic de-risking – hence the name lifecycle – and the client can choose between the same risk proiles – typically low medium and high. It is important to emphasise that pension funds already carry out basic and robust ESG screening of investments in mainstream lifecycle products. How-ever in the sustainable lifecycle products pension companies choose to carry out an even more criti-cal screening and therefore the client is offered an even greener investment alternative. Pension funds also offer sustainable investments in their link universe. This means that more individ-ually orientated savers also have the opportunity to opt in to sustainability. However in the following the focus is exclusively on the ESG lifecycle products of pension funds. Do sustainable products have an impact? In assessing sustainable investment products it is natural to examine whether there is any measurable impact of the speciic environmental and responsi-Figure 5. CO emissions per million euros investedWhat is ESG?ESG criteria are used by investors to evaluate a company's performance and risk proile and by companies to improve their reputation and minimise the risk of negative ESG-issue impacts.• Environment (climate) Here the focus is on companies' climate and biodiversity impact through their con-sumption of raw materials energy and CO emissions.• Social (social matters). Here it is assessed whether companies – and where relevant their subcontractors – respect fundamental human and labour rights and focus on occupational health and safety.• Governance (management responsibility) Here company management must ensure transparency avoid corruption bribery questionable tax structures and money laundering. 18193517385637401651564255AP ActiveAP BæredygtigDanica BalanceDanica Balance Ansvarligt ValgNordea Pension ProfilpensionNordea Pension Profilpension MixNordea Pension FormålspensionPFA PlusPFA Klima PlusVelliv VækstPension AktivVelliv VækstPension IndexVelliv VækstPension AftrykNASDAQ Global Large Mid CapSource: MatterPension report │ 21

bility focus when compared to mainstream lifecycle products.Risk of greenwashing The surge in investor interest in sustainability has in-creased the risk of encountering rogue actors who knowingly or unknowingly market investment prod-ucts as responsible or green without being able to document this. This concept is called 'greenwashing' and it is a problem as consumers who genuinely want to do something for the environment are not getting the product they paid for. In addition greenwashing creates an unlevel playing ield for serious ESG pro-viders. To combat greenwashing the EU has adopted a series of regulations to increase transparency re-garding which investment products can be genu-inely labelled as sustainable. This provides a higher level of investor protection. At WTW we routinely carry out independent measurements of the sustainability of lifecycle prod-ucts. This allows pension savers to compare the ESG proiles of products. WTW makes ESG comparisons on a wide range of metrics but in this context the focus is on the CO emissions of investment portfo-lios and their renewable energy generation.CO emissions of equity portfoliosResponsible investment has many facets and vari-ous metrics. However most people will probably in-tuitively think of CO emissions when assessing the sustainability of an investment. A comparison of speciic CO emissions immedi-ately seems easier to relate to and the media there-fore primarily focus on the environmental part of ESG. However as mentioned earlier this in no way means that pension funds are not interested in the other areas. Figure 5 shows the CO emissions from equity portfolios of lifecycle products compared to the broad global NASDAQ Global Large Mid Cap port-folio. Apart from AP Sustainable the Danish ESG prod-ucts all have lower emissions than both the bench-mark and the regular lifecycle products. The tar-geted ESG focus of pension funds and the tighter investment restrictions they have imposed on them-selves therefore seem to be having an effect. So if an investor is interested in contributing to reducing global CO emissions it is possible to do WTW has partnered with MatterAs an impartial pension broker it is important for WTW to obtain independent evidence of pen-sion companies' ESG lifecycle products. WTW has therefore partnered with Danish research irm Matter which specialises in the impartial assessment of the sustainability of investments. It should be noted that Matter has a formalised cooperation with AP Pension. However WTW's assessment is that this does not affect Matter's impartiality.Since 2017 Matter has built up a large database with a wide range of ESG information on most global public companies such as their carbon footprint and management accountability. Pen-sion companies' equity portfolios can be linked to the Matter database to calculate the environ-mental footprint of individual lifecycle products. The calculation is based on the enterprise value of equities – i.e. the total value of the limited liability company adjusted for the weight of the equity in the portfolio. As a benchmark Matter has performed similar calculations on the international stock index NASDAQ Global Large Mid Cap which consists of approximately 2800 different equities. Based on these calculations a comparison can then be made between the regular lifecycle products and the ESG lifecycle products – and it is also possible to make comparisons across pension companies.

1.34.613.312.115.34.228.312.413.16.38.312.27.0AP ActiveAP BæredygtigDanica BalanceDanica Balance Ansvarligt ValgNordea Pension ProfilpensionNordea Pension Profilpension MixNordea Pension FormålspensionPFA PlusPFA Klima PlusVelliv VækstPension AktivVelliv VækstPension IndexVelliv VækstPension AftrykNASDAQ Global Large Mid CapFigure 6. Renewable energy generation per million euros investedSource: Matterso by opting for one of the sustainable ESG prod-ucts.Several of the regular lifecycle products also have lower emissions than the benchmark which shows that Danish pension companies are taking environ-mental responsibility in both types of lifecycle prod-uct. Investments in renewable energyAll pension companies agree that CO emissions must be reduced. This can be done by investing in companies that already have low emissions. But a reduction can also be achieved by investing in com-panies that support the green transition.In relation to the green transition it is therefore also relevant to look at the generation of renewa-ble and green energy by the investments. Figure 6 shows the amount of renewable energy generated per year by the companies in which pension funds' lifecycle products are invested.It shows that the equities in the NASDAQ (bench-mark portfolio) generate 7 megawatt-hours of renew-able energy annually for every €1 million invested. Overall most of the pension companies' portfolios are above the benchmark so Danish pension com-panies generally place a larger share of their invest-ments in renewable energy than is the case for the investment market in general.Should you make the sustainable choice?The variation in equity types is smaller in ESG prod-ucts compared to regular lifecycle products so even though the share of equities is roughly the same in the two product types the risk diversiication is therefore smaller in ESG products and the risk will be slightly higher.If you are unsure which of the two products to choose WTW recommends that you opt for the reg-ular lifecycle product as the spread of risk is greater. WTW is developing a new risk test to help clients ind the risk proile and investment product that suits them best. Of course ESG will also be includ-ed. For those clients who are particularly interested in responsible investment every six months WTW organises an ESG webinar to review the companies' products. An overview of upcoming webinars can be found at wtw-event.dk.Pension report │ 23

Impartial advisory ensures peace of mindWhile pension advisory used to take place mainly through face-to-face meetings at cli-ents' workplaces today most meetings take place online via Microsoft Teams. The coronavirus crisis forced us to think in terms of digital solutions so that we could continue to provide good adviso-ry services and although face-to-face meetings are once again an option the vast majority of compa-nies and the majority of their employees still prefer to meet online. This gives much greater lexibility – e.g. to attend meetings from home and allow your spouse to join. In 2022 14420 clients have been advised by WTW and 6650 have subsequently participated in the satisfaction survey – equivalent to 46 per cent. On a scale of 1 to 7 with 7 being the best WTW achieves an average satisfaction score of 6.8 among employees who received advice in 2022. Great appreciation of impartialityThe level of client satisfaction among WTW's clients remains very high. From the responses it is clear that it is particularly important that employees feel that they receive impartial advice that focuses solely on their personal interests. WTW itself has no inan-cial interest in the investment choices of its clients nor does it have any investment products of its own. Impartiality is WTW's core value and our advisors focus solely on identifying the needs of our clients and inding the solution that best suits their current situation and future aspirations.The need for impartial advice is also growing as pension companies introduce new products – not least the opportunity to invest in companies that contribute to the green transition. WTW is also see-Anni Wiese HøgholmAssociate DirectorCLIENT SATISFACTIONOn a scale of 1 to 7, with 7 being the best, WTW achieves an average satisfaction score of 6.8 among employees who received advice in 202224 │ WTW

ing strong demand for advice on when it is advan-tageous to keep previous savings where they are today – or whether it is advantageous to consol-idate pension schemes. In such situations it can be particularly important to be able to talk to an impartial advisor who knows the market and can ind the absolute best solution for the individual employee.Focus on the quality of adviceWTW has a constant focus on quality and as pension advisory is among our core services it is important to us that all our employees are optimally equipped to provide good advice at all times. All new WTW pension consultants therefore un-dergo an induction programme which gives them plenty of time to build up the necessary professional and personal skills. It also ensures that their more experienced col-leagues are continuously upskilled as legislation changes and new products and advisory services enter the market.By investing in the training and upskilling of our pension consultants WTW ensures that they are always able to provide the best possible advice to clients which can be a contributing factor in main-taining client satisfaction year after year. Comments from clients in 2022Clients' comments in the questionnaire sent to them after advisory sessions tell us a lot about what creates satisfaction.»I have attended countless meetings of this type. However this is the irst time I have gained real value from it.«»I had a very good and constructive meet-ing. It was reassuring that the advisor did not have to sell me anything but instead listened carefully to my needs and wishes.«»The advisor made the pension conversation both understandable and relevant to me through speciic examples and clear image-ry so I could much better understand what we were talking about.«»Feel lucky to work in a company that has a cooperation with WTW. Impartial advice is a commodity that is almost impossible to ob-tain without it costing a fortune. I see it as a great staff beneit.«Pension report │ 25

Your tool for increased value creationWhen we measure the satisfaction of our cli-ents at WTW we distinguish between the company and its employees. Employees are given the opportunity to rate the WTW after each advisory session and we are extremely grateful for all the responses we receive. Our contact persons in the companies do not have advisory meetings in the same way as employ-ees. Rather we have a valuable collaboration to cre-ate an optimal framework for the company's pension scheme and employee well-being. We therefore en-courage all our contacts to participate in the annual satisfaction survey as it should also be seen as your organisation's tool to provide us with feedback so that we can deliver the best possible service to you and your staff. To this end for several years WTW has used the Net Promoter Score (NPS) an internationally recog-nised standard for assessing client satisfaction.Unfortunately we note that the response rate for our NPS survey has dropped from 58% in 2021 to 46% in 2022. We hope to see an increase in the re-sponse rate in 2023 as the feedback from our cli-ents is extremely important for the future develop-ment of the way we create value for you. Nevertheless we are pleased that WTW's NPS score has increased from 43 in 2021 to 56 in 2022.The responses from the 2022 survey have fo-cused among other things on the WTW's advisory capacity which several clients would like to see im-proved. It is gratifying that so many people are seek-ing WTW's impartial advice but we must also rec-ognise that the high level of interest can sometimes result in bottlenecks in the calendars of pension consultants. This is a challenge that must of course be addressed so that employees feel that they can get impartial advice when the need arises. On the positive side we are proud that in their 2022 responses clients appreciate our service our ability to cooperate and not least the high profes-sional level of WTW. Stine EnevoldsenBusiness AnalystNET PROMOTER SCORE  SATISFACTION MEASUREMENTWhat is Net Promoter Score?On a scale of 1 to 10 with 10 being the most positive answer clients indicate whether they would recommend WTW to others.The answers are divided into three groups: 1–6: Detractors7–8: Passives9–10: PromotersTo arrive at the company's NPS the percent-age of Detractors is deducted from Promot-ers. The rule of thumb is that an NPS of below 0 is bad 0–50 is good and above 50 is ex-cellent. The scale ranges from minus 100 to plus 100.

Figure 7. NPS score over the last three yearsFigure 8. NPS response rate over the last three years20203843562021 202257%58%46%2020 2021 2022Pension report │ 27

CLAIMS PROCESSINGIf one of your employees is injured or falls ill WTW's claims specialists step in to provide pro-fessional help and advice. Since 2016 WTW's so-cial workers claims and insurance specialists have been helping employers employees and survivors and have now been integrated into WTW Corporate Care which covers WTW's full range of advisory ser-vices. Claims specialists have in-depth knowledge of the many actors involved in a sick leave treatment and insurance process – and they have extensive ex-perience of the processes and the way the different actors interact with each other. Litigation on behalf of clientsIt is the specialists' job to ensure that you are aware of the relevant legislation and the insurance terms that are relevant to each situation. The process should not become more onerous and complicated than necessary – neither for the individual employ-ee nor for the organisation's HR department. One of the team's important tasks is to assess cases where Professional help for sick and injured workersSince 2016 WTW has had decisions overturned in 101 cases of loss of earning capacity critical illness death and social beneits securing DKK 75 million in compensation and adding value for clientsAnne-Kathrine VestergaardSocial worker and claims specialistan employee is dissatisied with the company's de-cision in a payment claim e.g. for loss of earning capacity or critical illness. Health is often at the centre of a dispute over whether an insured employee is entitled to compen-sation for loss of earning capacity. Even if the job centre has assessed that an employee's working ca-pacity is so reduced that they may be entitled to an insurance payment the pension company may take a different view – e.g. on the grounds that they are not assessing working capacity but rather earning capacity. Since 2016 WTW has had decisions over-28 │ WTW

turned in 101 cases of loss of earning capacity crit-ical illness death and social beneits securing DKK 75 million in compensation and adding value for its clients. Loss of earning capacity with 74 cases and DKK 70 million is by far the largest component in the statistics.Loss of earning capacity can generally trigger very large amounts of compensation if the loss of earning capacity is considered permanent because the employee is then entitled to receive compensa-tion every month until he or she reaches retirement age. It is therefore not surprising that it is in this type of case that disagreements can arise.Pension companies are generally very thorough in their deliberations when rejecting a claim for payment and if clients complain there are also thorough processes in place involving lawyers and external consultants. However mistakes can still happen and it is in these cases that WTW steps in and litigates on behalf of its clients. In 2022 alone WTW has secured a total of DKK 5.6 million for clients in 10 rejected cases of loss of earning capacity critical illness and non-payment of pension contributions. More people are getting treatmentWTW's claims specialists also help employees who have been refused treatment through their health insurance. Fortunately errors in the handling of health insurance claims are very rare but when they do occur claims specialists are ready to assess the case and to engage in dialogue with the health in-surance company if the specialists ind that there may have been an unlawful decision by the insurer and that there appears to be a possibility that the employees are entitled to treatment.In 2022 115 clients contacted WTW to learn whether they had been subjected to an unjustiied refusal by the pension company. WTW found reason to appeal the decision in 45 of the cases and suc-ceeded in getting the decision changed in 32 of the cases – equivalent to 71 per cent.Added value 2016-2022Subject CasesAdded value for the clientLoss of earning capacity 74 70037809Critical illness 8 889000Disability and death 7 2353351Social beneits and pensions 12 1871332Total 101 75151492Pension report │ 29

Webinars make a big impactWTW's webinars began as an emergency solu-tion as during the coronavirus pandemic it was no longer possible to disseminate information about the company pension scheme through physical seminars and information meet-ings as had been done in the past.Now in its third year WTW offers a variety of we-binars to clients and the number of topics is increas-ing as the format has proved to be extremely practi-cal. WTW simply reaches far more clients – both HR and other contacts in the company and not least the employees covered by the pension scheme. Key knowledge reaches employees The number of webinars held in WTW has doubled from 2021 to 2022 – and webinars targeting the em-ployees of individual companies in particular con-tributed to the increase. In addition to offering gen-eral webinars for all clients in 2022 WTW has also increasingly used the webinar format to inform em-ployees in speciic companies about the content of their pension scheme about changes to the scheme or simply to give an update on the past year. It is easier for employees to ind the time to par-Helle GuldagerSenior ConsultantWEBINARS

ticipate in a webinar than to attend a seminar or information meeting in person. This means that through the webinars many more of your employ-ees are informed and made aware of their pension scheme and what they need to consider in relation to it. This helps to create focus on the pension scheme as the second largest element in their salaries.Better equipped for pension adviceThe impact of the webinars on employees is evident for WTW's advisors as each employee is much bet-ter prepared for the personalised advice offered or sought after a webinar. It is clear that employees clearly know more in ad-vance and therefore our advisors can in many cases provide much more qualiied advice that gives the employee a better understanding and enables them to make more informed choices about aspects of their pension scheme.Bestsellers in 2022In 2022 WTW organised over 100 webinars with more than 22000 employees registered. Among the most popular topics were four webinars target-ing employees aged 55+ who want to focus more on late-career savings and retirement planning. The four webinars each addressing a key topic for late-career staff attracted over 8000 registra-tions in 2022 combined.There has also been a lot of interest in learning more about all the options for investing pension savings. WTW has offered both general webinars on investing and webinars that are more speciic to the opportunities offered by individual pension compa-nies. The total of 18 investment webinars in 2022 at-tracted more than 9000 registrations.In 2022, WTW organised over 100 webinars with more than 22,000 employees registeredWebinars in 2023In 2023 WTW has already scheduled over 50 general webinars. The topics that attracted the greatest interest last year will of course be offered again but more topics will be added on an ongoing basis. Once a quarter WTW sends out targeted invitations to our webinars – both to our con-tacts in the company and to the company's employees. Individuals can choose between the different topics organised at different times throughout the year. All open webinars are available on the WTW event website wtw-event.dk.HR and administrators There are four webinars aimed speciically at HR and personnel management. For example HR can be better equipped to manage the processes when an employee goes on sick leave:• Get your company pension scheme in top shape • Optimise the management of your pension scheme• Understand and explain your pension scheme • How to deal with employees on sick leave EmployeesThere are also a number of webinars specii-cally targeted at employees. Here is a selecti-on of the topics that will be covered in WTW staff webinars in 2023: • Late career – how to optimise your savings• Maximising your pension• Inheritance – how to protect your survivors• Better housing inance and investment of free fundsPension report │ 31

Sickness absenteeism puts both employee and organisation in a dificult situation and the high prevalence of stress shows that there is a signiicant need to address sickness absence as early and effectively as possible. Effective management of sickness absenteeism may sound like a return to work as soon as possi-ble whatever the cost. This is not the case – quite the contrary. However managing sickness absence professionally and effectively is of great value to the person on sick leave their colleagues and their or-ganisation.In an effective process a response team is ready to help and ensure that both HR and the employee on sick leave get the help they need. Clariication calm and a clear message are essential. Both for HR who have to navigate rules terms and agreements but also to a large extent for the person on sick leave who may have lost the overview that was tak-en for granted before illness or stress developed.Ten years ago WTW initiated the irst collabora-tion to offer early proactive intervention to employ-ees who were sick for more than 14 days Unfortunately all studies show that today there is an even greater need for early coordinated and pro-fessional intervention in this area.HEALTH AND WELLBEINGSource: Danskernes sundhedsproil 2021Employee health is a risk Half of Danes have a lifestyle that increases the likelihood of developing a lifestyle disease.19 per cent of employed people in Denmark have elevated stress levels.17 per cent of employed people in Denmark have poor mental health – the problem is greatest among the younger half of employees.11 per cent of employed people in Denmark have poor physical health – the problem is greatest among the older half of the workforce.Søren Egens PetersenHead of Corporate Health & Wellbeing 19%This is how many people in employment in Denmark have elevated stress levelsEarly intervention has a big effect

Holistic approachFrom 2023 WTW has decided to integrate Pathind-er ("Stiinder") into the full range of advisory servic-es we provide to both employees and companies. We call the new product WTW Corporate Care.WTW Corporate Care offers impartial social and insurance advice for both employees on sick leave and HR departments.The value for the companyWith Corporate Care WTW's clients get access to:• Counselling in connection with long-term illness• Establishment of process and procedures for claims management• Feedback from the company's HR department• Advice and support for the employee in the situ-ation• Impartial assessment of the decision and compen-sation in connection with the payment of loss of earning capacity and the use of health insurance• Second opinion and complaint procedure against the companyHolistic approach Pathinder is part of Corporate Care and ensures a holistic approach to the person on sick leave's situ-ation. WTW conducts an impartial follow-up on the pension company's preparedness and handling of the employee on sick leave and in addition there is regular follow-up and discussion with HR in complex cases of sickness absenteeism. As part of the advisory service WTW offers a sec-ond opinion in situations where there is a need for quality assurance of the company's claims handling and decision-making to ensure that the employee's and the company's rights are properly taken into ac-count.WTW Corporate Care's holistic approach contrib-utes to a safe and smooth claims process when an employee is on long-term sick leave. This helps the employee on sick leave HR and the organisation.WTW Corporate CarePersonalised advice and supportFollow-up on claimsHR feedbackReference to the company's emergency responseQuality index of companies' claims handlingSecond opinion on insurance caseConlict management with the companyThe employee on sick leaveHRTHE WTW SOLUTIONIn a full employment labour market, impartial and holistic handling of workplace illness is more important than everPension report │ 33

For many companies it is nothing new that man-agers have an enormous inluence on the psy-chological working environment and that man-agers as special culture bearers can inluence both the company's culture and well-being. Yet year af-ter year dissatisfaction with managers tops the list of reasons why Danes change jobs. Therefore there is a large inancial gain to be had by focusing on how individual managers per-ceive themselves and how they are perceived by key stakeholders such as employees – both in terms of strengthening the psychological working environ-ment and in terms of retaining employees. It can be dificult to articulate the difference be-tween the manager's self-perception and the em-ployees' perception of the manager – both for the individual employee and for the manager who may not necessarily realise that the difference exists. Fortunately an open dialogue can be a good start-ing point for working on leadership development. However this requires anonymous feedback to be obtained through a standardised methodology where key stakeholders assess the manager on rele-vant managerial areas. In addition it requires the feedback to be deliv-ered and facilitated in an evolving dialogue with a focus on relection on leadership strengths blind spots and development points. MANAGEMENT TRAININGMattis Noot IshøySenior Consultant Saville Consulting Source: The 2021 candidate analysis by Ballisager The manager's behaviour can pose a risk18 per cent of Danes surveyed said that the reason for their most recent job change was dissatisfaction with their manager.33 per cent of those who changed jobs because of their manager cite a lack of self-awareness on the part of the manager as the reason for the job change. When managers are asked how they would prefer to develop their leadership skills, 47 per cent say they prefer coaching with their own manager and 27 per cent prefer coaching with an external professional consultant.Management training as a preventive measure18%That many Danes have changed jobs because they were unhappy with their manager

Leadership development through 360-degree feedbackSaville Consulting a WTW Alliance Partner offers the Wave Leadership Impact 360 an assessment tool for leaders. Organisations can use the tool to make visible how the manager perceives themselves compared to how they are perceived by key stakeholders such as the manager's employees. On the basis of this partnership WTW can offer its clients leadership development programmes fa-cilitated by consultants from Saville Consulting and based on Wave Leadership Impact 360. For those of our clients who want to drive leadership develop-ment themselves we can offer certiication in the use of Saville's 360-degree tool. The value of Saville's 360-degree tool • Structured and standardised collection of feed-back with a short response time of 10 minutes per assessor• Report presenting an organisational perspective on the individual manager • Strengthening the self-awareness of the individu-al manager through the clariication of differen-ces between the manager's self-perception and others' perception of the manager• Identiication of managerial 'blind spots'• Focus on the managers strengths and potential The Wave Leadership Impact 360 report is directly aligned with Saville's 3P Leadership Impact Model: Professional People & Pioneering which represents the three main approaches to effective leadership and provides a detailed insight into 18 leadership styles and 9 leadership 'impact' areas based on feedback from a range of key stakeholders. THE SAVILLE CONSULTING SOLUTIONIn 2022, more than 2,000 development reports were generated on the basis of 360-degree responses across industriesPension report │ 35

Companies beneit greatly from retaining their most experienced employees but a targeted effort is needed to succeed in this endeavour. In recent years a number of reforms have been im-plemented to encourage Danes to stay longer in the labour market. The retirement age is rising – and so is the desire to stay in the labour market.This is good news. Companies beneit from re-taining their most experienced employees for a few more years especially in times of labour shortages and relatively small youth cohorts.However the incentives for individual workers to stay longer in the labour market can vary consider-ably. We are all motivated by different factors and individual wishes for senior working life must there-fore be taken into account in interaction with oppor-tunities in the company and the individual's compe-tences and role in the company.Retaining older workers and continuing to cap-italise on the experience they bring and the value they create may require innovative thinking on the part of the employer. The organisation must create an environment that can accommodate the wishes of older workers. Shorter working hours and less de-manding tasks may be the way forward but this is just one focus area. The most experienced employ-ees know what it takes – and that's why dialogue is the best place to start.SENIORS IN THE LABOUR MARKETHelle GuldagerSenior ConsultantSource: Forsikring & Pension et al.More seniors in the workforceEmployment among Danes aged 60 and over has increased by 60 per cent since 2008.The average retirement age in 2022 is 67 years.The increase in the number of older workers is due to the fact that• the large year cohorts of the ifties have reached the age of 60• the state pension age is rising• a quarter of all Danes choo-se to continue working after retirement age67 YEARSThis is the average retirement age in Denmark – the highest everThe task is to create a better late career

Dialogue and adaptationIn order to create a good dialogue with seniors in the workplace the company can beneit from for-mulating a senior policy and consider whether em-ployees should have access to special counselling and information to help them feel secure about re-tirement. The senior policy is a tool for managers to use in dialogue with the employee. Senior policyIn a senior policy the organisation addresses the conditions and framework in which older employ-ees carry out their work such as• Possibility of reduced hours and lexible working hours• Reduction of workload/responsibility• Continuing education• Possibility to work after retirement ageWhen drafting the senior policy WTW helps to map out the options that can be offered to seniors when planning the last part of their working life. This in-cludes the importance of seeking inspiration for how working life can be organised clariication of one's own skills and well-being and of what will eventually replace working life. As inances are a major factor it is important to understand well in advance what the inancial situ-ation will be on the day the salary is no longer paid out and the retired employee has to live on their pension. These are some of the informative elements and opportunities that WTW helps organisations to in-corporate into their senior policy.Advice for seniorsWTW offers a special advisory concept for employ-ees approaching retirement age. The advisory ser-vice ensures that employees focus on savings for the remainder of their working life in good time and on what is important to get a handle on as regards their inances. The employee will also be helped to draw up a plan to optimise the payment of the dif-ferent pensions. The advisory service provides an-swers to questions such as• What will my inances look like when my partner or I leave the labour market?• When can I afford to retire?• In what order should pensions be paid out?• Am I doing the right thing in terms of state bene-its?• Does my partner's pension scheme affect my pension scheme?In addition to individual advice WTW offers senior seminars and webinars that contribute to late-ca-reer well-being. Learn more at wtw-event.dk.THE SOLUTION FROM WTWIn 2022 senior inancial advice has increased clients' payments by DKK 10000 per year after tax on averagePension report │ 37

Insecurity and lack of knowledge about person-al inances is a stress factor in everyday life for many people. This may be due to real economic challenges – or a lack of insight and overview. The importance of inancial literacy has been recognised in primary and lower-secondary education where personal inance has been included in the curriculum since 2014. Here Money Week has been introduced for the oldest pupils because inancial literacy early in life is important for making good inancial decisions. Fortunately it is not too late for adults to improve their personal inance skills – and studies show that action is needed. For the 61 per cent of Danes who associate their inances with discomfort money can become an ampliier for negative trends in their lives and work performance. It's not just a question of having enough money – fear uncertainty reluctance to deal with and lack of control over personal inances can lead to inancial stress in itself. The fact that private consumption is currently affected by signiicant price increases on virtually all goods only increases the need for insight and overview.The good news is that it often takes less than you think. Even if personal inances seem both bother-some and confusing employees can easily be pre-sented with peer-level knowledge and user-friendly tools that can provide answers to their questions an overview of personal inances and thus greater peace of mind and energy in everyday life. PERSONAL FINANCIAL WELLBEINGMartin FlodgaardExecutive DirectorSource: Statistics DenmarkPersonal inances are a sensitive subject61 per cent of Danes feel uncomfortable when they think about their inances.29 per cent of Danes feel uncomfortable about their inances at least once a month.39 per cent of Danes feel nervous or anxious when thinking about their inances.16 per cent of Danes feel physically ill when they think about their inances.Financial literacy brings energy to life61%This is how many Danes feel uncomfortable when thinking about their personal inances

Knowledge, tools and advice on personal inancesWhen your inances are in order you can focus on other things in life – including your work. The aim of Financial Wellbeing is to eliminate employees' inan-cial concerns and help them perform at their best.Value for the companyFinancial Wellbeing is implemented throughout the organisation so that all employees have access to it – and so that they can take action and make use of the offering when they need to. Value is created for the organisation by• Strengthening corporate social responsibility • Eliminating the concerns employees may have about their personal inances• Creating calm and energy – and improving the conditions for employees to thrive and perform at their best in their jobs The new staff beneitFinancial Wellbeing gives your organisation's em-ployees the opportunity to strengthen their inan-cial literacy and thus improve their ability to man-age their personal inances. Financial Wellbeing provides access to:• Webinars with WTW's inancial experts to provide employees with inspiration and insight on perso-nal inance topics• Access to the Hotline which employees can call to speak to an impartial inancial advisor who can answer speciic questions and advise on par-ticular inancial situations and considerations• Access to inancial tools such as a loan calcula-tor budget tool and savings calculator. The tools support and assist employees in gaining a valuable inancial overview and strengthen the decision-making basis for the individual• Guide and advice explaining personal inance to-pics in a simple and clear way making a complex subject easier to understand. By following WTW's guide and advice employees increase their chan-ces of inluencing the elements of their personal inancesTHE WTW SOLUTIONBy giving employees access to a hotline peer-level knowledge and user-friendly tools they can get an overview of their personal inances – and thus greater peace of mind and energy in their everyday livesPension report │ 39

Now the company's employees can get impar-tial advice on how to invest and optimise the part of their savings that they have in addition to their company pension.The wealth of Danes grows as their age increas-es. Over the past year inlation and price increases have made us hold back on major investments – and many have left their money in the bank account. For many people it is not news that wealth should not just sit in a bank account if you want to make the most of your savings. Yet that is what many choose to do. Today Danes have more than DKK 1 billion in their bank accounts and although savings are grow-ing rising consumer prices mean that the value of the savings is falling.Every time we change jobs we are covered by a new company pension scheme. If you have changed jobs several times during your career there is there-fore a high probability that you still have old pension savings in pension companies other than the one where your company pension is currently invested. Savings spread across several pension companies can also contribute to the loss of value of assets be-cause of the costs paid by each company.Danes' bank deposits and pension savings clearly show a need to improve the management and in-vestment of their wealth. MANAGEMENT OF PRIVATE SAVINGSAllan GardeExecutive Director Source: Statistics DenmarkDanes' wealth increases with ageTotal net wealth in Denmark is DKK 1,938 billion in 2021 – 14.4 per cent higher than in 2020.In 2021, Danes had an average net wealth of DKK 749,628 after deducting debt.In 2021, half of Danes aged 60 to 69 had a net wealth of more than DKK 2 million after deducting debt.Wealth must be managed to avoid losingDKK 2MThis is the net wealth of half of 60- to 69-year-old Danes

Investment, placement and monitoringWTW Private Clients offers impartial advice to clients who want to optimise the savings they have along-side their company pension scheme. This means that the company's employees can get impartial ad-vice on personal inances that is more comprehen-sive than before – and which ensures that all person-al savings are taken care of. Recommendations from the personal advisorPrivate clients are assigned a personalised dedicat-ed and impartial advisor who follows the client and makes recommendations throughout the process. The personal inancial advisor is with them in the background during both the savings and payout phases ensuring that the client achieves:• An overview by reviewing their individual savings and any risk cover – and clarifying individual risk appetite • Flexibility and attractive terms through WTW's access to the product offerings of all commercial pension companies in Denmark• Optimised wealth by helping them ind the right solution based on their needs and preferences in terms of proile and horizon• Ongoing status meetings where recommendati-ons are adjusted as individual needs and prefe-rences change• Quarterly reporting of returns making it easy and transparent for clients to keep track of their assetsWealth is managedIt is important to take good care of your savings which means among other things ensuring that they are:• organised in such a way that as little money as possible is spent on administrative and manage-ment costs• invested with the risk proile appropriate to the situation and the economic climate• monitored during both the saving and payout periodWTW's impartial advisors in Private Clients help cli-ents with the placement investment and monitor-ing of their savings alongside their company pen-sion scheme in order to optimise the return on their savings.Since April 2022, more than 300 Danes have chosen to become clients of Private Clients – and more than half a billion Danish kroner has come under management in around six monthsTHE WTW SOLUTIONPension report │ 41

Insurance and risk management are fundamental-ly about creating security and stable conditions for people and businesses. Services that are par-ticularly in demand in the current period. As Denmark's largest insurance broker WTW pro-vides risk analyses advice and claims management to many thousands of Danish companies – includ-ing public companies and organisations. Our clients range from small businesses to some of Denmark's largest – and in many cases listed companies with international relations. This broad client base gives us unique market in-sight and purchasing power. On behalf of our cli-ents we are the largest single business partner for several of the major Danish insurance companies. We use this to our clients' advantage.A complex insurance marketWTW's specialists are keenly aware that business-es are trying to adapt and navigate these turbulent times safely. Businesses are demanding risk analy-ses contingency plans advice and new insurance solutions like never before – all to provide additional business certainty in dificult timesJust as businesses are struggling and facing new challenges the insurance market is also going through turbulent times. One of WTW's core tasks is to help our clients optimise their risk and insurance solutions. When it comes to insurance pricing the international reinsurance market plays a crucial role. To reduce risk and to ensure that they have sufi-cient capital to pay any claims from policyholders Danish insurers transfer a signiicant part of the risk of their insurance contracts to large global reinsur-ers. The terms and prices of these reinsurance con-tracts are negotiated annually – and a number of factors mean that prices are rising while coverage is narrowing. With war inlation rising interest rates supply and energy crises – not to mention a growing num-Camilla ElverdalCo-CEO WTW Denmark Head of Corporate Risk & BrokingTorben HøjlundExecutive Vice PresidentJesper DanvadChief Broking OficerRISK ADVISORYBusinesses are demanding risk analyses contingency plans advice and new insurance solutions like never before – all to provide business certainty in dificult timesRisk advisory in turbulent times42 │ WTW

ber of natural disasters – come higher claims pay-ments and a change in risk appetite. These are all global mechanisms that affect the price of reinsur-ance which in turn affects the prices and conditions of Danish and direct signatory insurers.The complex relationship between insurers and reinsurers may have implications for the insurance market. This is partly because higher prices and worsened conditions could be the outcome when companies need to renew their insurance policies at the end of 2023 – and partly because smaller insurers in particular could be forced to leave the market if they are unable to obtain reinsurance. This would reduce competition in the insurance market and thus further challenge the ability of companies to maintain or negotiate better terms on their insur-ance policies. Bargaining power is crucialThe competitive environment in the insurance mar-ket is inluenced by market mechanisms and the in-creasing risk aversion of insurers. Despite the large number and apparent diversity of insurance provid-ers effective competition is declining as companies largely rely on identical reinsurance mechanisms that signiicantly narrow the differences. Access to other and new insurance markets out-side Denmark and the ability to conceive and devel-op alternative solutions is therefore more important than ever before. And this is where WTW makes a crucial difference for both small and large clients.The complexity of the insurance market increases the need for a company to approach the negotiating table from a position of strength when taking out new insurance policies or renewing existing ones. WTW is the largest purchaser of insurance in Den-mark and among other things this beneits our many clients in the Willis Insurance Pool (WIP) who get both better insurance products and lower insur-ance prices than it is otherwise possible to achieve Pension report │ 43

as an individual client in the Danish insurance mar-ket. Credit has become a competitive parameterInsurers are not alone in being affected by an un-certain market. Virtually all industries are facing the challenge of adapting to increased energy prices rising inancing costs labour and material shortag-es rising raw material prices and long lead times for various materials including raw materials. SME Denmark which organises 18000 small and medium-sized enterprises published an analysis in October showing that the number of bankruptcies in Denmark is at a record high – higher than at any time during the 2008 inancial crisis. The failure of even one client or provider can have serious conse-quences for a company creating a new bargaining and competitive situation in the market as well as a need to reassess the company's existing credit con-ditions. When credit ceilings and credit periods are raised as a decisive element at the negotiating table it is a strength for the company to be prepared and have decided on the risk it is willing to take. This has led WTW's clients to seek speciic risk advice on what they can do to strengthen their credit security and minimise the risk of losses.As an impartial risk advisor WTW helps compa-nies identify and manage their risks so that they can capitalise on market opportunities without being ex-posed to disproportionate risk. Cyber threats to Denmark are increasing signiicantlyAnother serious challenge is the omnipresent threat of cybercrime.The Centre for Cyber Security (CFCS) continu-ously assesses the cyber threat to Denmark. CFCS was established in 2012 as part of the Danish De-fence Intelligence Service and publishes regular threat assessments. The latest assessment from 20 February 2023 states: "The threat from cyber espio-nage is very high. The persistent threat emanates in particular from Russia and China and continuously leads to cyber attacks against Danish targets. Parts of Danish society are exposed to a persistent active and serious threat." In addition the CFCS states that: "The threat from cybercrime is very high. The most serious cyber-

crime threat to Denmark comes from ransomware attacks. The ability of cybercriminals to collaborate share work and specialise underpins the threat and contributes to maintaining the very high threat of cybercrime."At WTW we have been expanding our compe-tences in this area for a number of years – and an ever-increasing proportion of our clients both small and large take out cyber insurance to protect them-selves in the best possible way against the inancial damage that for example a ransomware attack can cause.With cybersecurity irm Truesec WTW created the WTW Cyber Defender concept. The concept consists of six sub-elements each of which con-tributes to strengthening the organisation's cyber security/preparedness and combined provides the best conditions for preventing damage and avoid-ing losses due to data security breaches.WTW Cyber Defender covers the full spectrum from prevention to insurance to crisis management with Truesec and WTW each bringing expertise to the table. WTW Cyber Defender therefore contrib-utes both to reducing the risk of a successful cyber attack and to limiting the consequences if it does happen. Analysis prevention and ongoing dialogueCredit Insurance and WTW Cyber Defender are the latest examples in a series of market-leading con-cepts where WTW is at the forefront of developing tools that in dificult or challenging areas expand our clients' insight into their own situation offer a foundation for further prevention and at the same time serve as the best possible basis for a possible purchase of insurance.WTW Cyber DefenderTruesec is an expert in cybersecurity. WTW is an expert in cyber insurance. We have combined our strengths to create WTW Cyber Defender which consists of six sub-elements covering the full spectrum from prevention to insurance to crisis and claims handling: • Insurance analysis – WTW• Risk analysis – Truesec• Risk advisory – Truesec• Cyber insurance – WTW• Crisis management – Truesec• Claims handling – WTWWTW Cyber Defender strengthens the company's cyber security – and provides the best overall conditions for reducing the risk of a cyber attack and limiting the consequences of a data breach.Credit insuranceThe rise in bankruptcies and challenges at all stages of the value chain are putting pressure on companies' cash lows and inancial security. In these turbulent times WTW has strengthened its competences in the ield of credit and guarantees and is ready to advise our clients on credit and guarantee conditions. Credit policyEach link in the value chain is assessed for risk when WTW helps companies deine the principles of their credit policy. Establishment of credit insuranceWith the credit policy in place it is possible to assess whether the company needs to take out credit insurance or establish other forms of collateral.Pension report │ 45

Employee advisoryIndividual impartial advice to optimise cover and pension savings Core STAFF BENEFITS HEALTH AND WELLBEING Optimising company pensionsAnalysis tendering and ongoing optimisa-tion of the company pension schemeHealth insuranceSickness absence is reduced and well-being increased when conditions are treated quicklyClaims handlingProper claims handling is ensured through impartial review of claimsImpartial health partner Analysis advice and continuous feedback ensure optimisation of health effortsExercise at workShort online exercise programmes motivate movement and alleviate physical discomfortFinances for seniorsIndividual impartial planning and optimisa-tion of employees' late-career inancesHelp for people on sick leaveProfessional support and guidance from the irst day of sickness can shorten sick leave Value Economic hotline and toolsFinancial peace of mind through access to a personal inance hotline tools and webinarsDigital WPA solutionFull coverage of occupational health and well-being based on all relevant data sourcesPersonal loans & BudgetImpartial help to optimise your personal inances and get your budget back on track Housing & Mortgage loanImpartial help to ind the best mortgage credit loan Savings & Wealth Impartial inancial advice to optimise wealth and savings Focus on the organisation's employeesWTW's impartial specialists help optimise employee beneits, health and well-being in your company. Legislation and guidelinesAdvice on legal matters – e.g. dealing with collective agreements Online medical careOnline consultation saves time and ensures timely treatment when needed Dental insurance Employee well-being increases when dental problems are dealt with in timePension report │ 47

INSURANCE SOLUTIONSManagement liabilityThe personal liability which executive direc-tors and board members may hold Key personLosses if one or more key employees can-not work for a period of timeCreditEnsuring liquidity if one of the company's clients cannot pay its billsProfessional liability for advisorsClaims for damages resulting from the advice given to clientsCrimeLosses resulting from criminal offences such as theft or embezzlementMotor vehicleClaims for compensation for damage to per-sons or property belonging to third partiesTransportDamage that may occur to goods during transportAccident insurance – collectiveIf an employee suffers permanent injuries or dies as a result of an accidentMovable property and operating lossesLoss of income and damage to property if for example a building is damagedFocus on business risksWTW systematises the company's risks and ensures impartial advice and claims management. On behalf of our clients, WTW is the largest purchaser of insurance in Denmark. Insurance solutionsEventsLosses in case of cancellation of most types of eventsCyber attacksLosses resulting from a security breach or system breakdownDiscriminationLosses resulting from employment law of-fences – such as harassment or bullyingCommercial and product liabilityLiability in relation to operation defective goods and servicesBusiness travelExpenses in case of e.g. illness repatriation or damaged luggage Occupational injuryInjuries sustained by employees in the course of their workBuildingDamage to the company's buildings – e.g. ire or storm damagePension report │ 49

WTW DanmarkWTW DenmarkNærumRundforbivej 303 DK-2850 Nærum+45 8813 9600AarhusTangen 17 DK-8200 Aarhus+45 8813 9400HolstebroNypark 49F DK-7500 Holstebro+45 8813 9400AalborgØstre Havnepromenade 24 DK-9000 Aalborg+45 8813 9200dk-info@willistowerswatson.comwtwco.com© WTW 2023This material has been prepared by WTW for the recipient's own internal and exclusive use.All rights to the material belong to WTW. The material may not be used reproduced passed on or distributed to third parties in whole or in part for marketing purposes or otherwise without WTW's prior explicit and written consent.WTW makes reservations for errors and omissions in the material and although the sources are considered reliable WTW does not guarantee the accuracy or completeness of the information.The contents of the material may not constitute or replace actual concrete broker advice. All decisions that the recipient or any third party may make on the basis of the contents are thus made at their own risk and without liability for WTW.TR: Annemette Sloth ER: Tina Thykjær CR: Lars Christensen

wtwco.comAt WTW (NASDAQ: WTW), we provide data-driven, insight-led solutions in the areas of people, risk and capital. Leveraging the global view and local expertise of our colleagues serving 140 countries and markets, we help you sharpen your strategy, enhance organizational resilience, motivate your workforce and maximize performance. Working shoulder to shoulder with you, we uncover opportunities for sustainable success – and provide perspective that moves you.