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Strategic Report Governance Financial StatementsGroup CEO’s reviewDelivering onour new strategyAcross Bupa we navigatedthe impacts of the secondyear of the pandemic, andI am really proud of thecare and commitment ourpeople continue to show forour customers and for eachother. In these results, we seethe benefits of the easing ofrestrictions in many places,with improving performancein health provision and agedcare, but I am also verypleased to see strong organiccustomer growth in healthinsurance. As vaccinationprogrammes are rolled outacross the world, I’m hopefulthat we will soon return toa more normal way of life.However, it is clear thatworld events, particularlythe war in Ukraine, createfurther uncertainty and weneed to remain vigilant asthe impacts become clear.Like many people, I am very worriedabout the war in Ukraine. AcrossBupa, we’re doing everything we canto offer support to people in need.Our thoughts are with everyoneaffected and we all hope for peaceto prevail as soon as possible.Last year, we launched our ambitiousnew 3x6 strategy, which is summarisedbelow. As part of this, I asked ourpeople to ‘run and change’ – whichmeans that we need to run Bupa andcontinue to deliver high standards ofservice for our customers at the sametime as we transform the business.I am delighted with the enthusiasmand energy everyone has shown as westart this journey. We are focused onembedding this strategy throughoutBupa with intensive work in progress,including how we will achieve ourambition to be a net zero businessacross all emission scopes by 2040.08We must deliver forcustomers and playour part in society.Our focus is on growth,transformationand sustainability.Our full year 2021 results reflect theunderlying strength of Bupa, withsignificant customer growth in severalhealth insurance markets and morenormal activity levels in our healthprovision services. We have maintainedour financial resilience with revenue at 12.9bn up 8% on 2020 and underlyingprofit up 14% to 405m at CER, whilewe focused on helping our customersto access treatment as quickly andas safely as possible as COVID-19restrictions eased. We continue tobenefit from our diversified portfolio ofbusinesses, and I am pleased with thestrength of our overall performance.In health insurance, a strong increasein customer numbers, particularlyin the Europe and Latin AmericaMarket Unit, increased revenue from2020. This was offset by increasedclaims levels in some markets as therewas reduced disruption from thepandemic compared to 2020. Wewere particularly pleased with thegrowth in customer numbers in ourhealth insurance businesses in Spainand Turkey, as well as in the UK.Bupa Annual Report 2021We launched ourbusiness-wide 3x6 strategy todrive Bupa’s transformationWe launched eco-Disruptive,a global talent and innovationprogramme with eco start-ups

12.9bnRevenue 8% at CER, 2020: 12.0bn 6% at AER, 2020: 12.1bn 423mStatutory profit before tax 7% at AER, 2020: 396m 405mUnderlying profit 14% at CER, 2020: 354m 8% at AER, 2020: 374mconnect and collaborate with eachother by introducing a new globalinternal engagement platform.Our health provision businesses arecoming back strongly comparedto 2020 as customers were able toaccess services more easily followinga reduction in lockdown restrictions.OutlookAlthough several of our marketshave reached the advanced stagesof vaccine deployment, we are stillnavigating the medium to long-termimpact of COVID-19 in all our businesslines. As restrictions are increasinglybeing lifted across the world, thevaccine rollout is progressing steadily,and economic activity is accelerating,we are positive about our futureprospects. We know that the pandemicis not yet over and that conditions insome markets remain challenging,with the recruitment of healthcareworkers an ongoing sector-wide issue,and with rising inflation increasingcosts for our businesses. Specificallyin Chile, we anticipate regulatory andpolitical dynamics to affect our Isapreinsurance business. While Bupa doesnot have businesses in either Ukraineor Russia, the macro-economicand human consequences of theconflict in that region are uncertain.Occupancy improved in our agedcare businesses as restrictions easedand more residents were able to beadmitted to our homes. Protectingresidents and staff remains ourabsolute focus and we continueto invest in safety equipment,staff training and support.These results are a credit to ourhard-working, dedicated people.Now we need to build on thesesolid foundations, adapt to changesin customer expectations for theirhealthcare and what people expectfrom businesses and embed ournew strategy. This will enable us totransform Bupa and position ourselvesfor continued success into the future.2021 highlights We launched the start of a seriesof emblematic projects which willunderpin the pillars of the newstrategy. Under the Transformationpillar we are beginning to roll outa digital health platform firstdeveloped in our Spanish businessas Blua. As part of our commitment tosustainability, we confirmed ourambition to become a net zerobusiness by 2040 across all ouroperations. To underpin thisambition, we have set science-basedtargets which are aligned to keepBupa’s contribution to globalwarming to no more than 1.5 C.I see transformation asour route to growth andit is at the heart of ournew plans. I’m confidentthat Bupa’s new strategywill position us in thebest way for successinto the future. We launched eco-Disruptive,a global talent and innovationprogramme which brings togetherthree elements of the new strategy:agile culture, transformation andsustainability. Through this, Bupateams in Australia, Spain, Chileand the UK worked with ecostart-ups to develop solutionsto help meet environmental andhuman health challenges. Strengthening our technology,digital and data capabilities iscrucial to realising our ambitionand we launched a Digital SkillsAcademy to support our people’sdevelopment. We delivered our firstGlobal Hackathon, through whichteams were challenged to designdata-driven solutions to improvecustomers’ experiences. As a steptowards building a more agile culture,we also improved how our peopleBy focusing on the pillars of the new3x6 strategy – Customers, Growth,Transformation, Sustainability, enabledby Agile Culture and Data – we areadapting well to the changing externalenvironment and transformingBupa to meet changing customerexpectations. Our digital transformationis continuing at pace so that wecan offer more services where andwhen our customers need them.We are well placed to navigatechallenges and take opportunitiesbecause of our underlying financialstrength, resilience and our diversifiedbusiness model. We are focusedon embedding the new strategy,driving growth and transformationso that we can run and change.Iñaki EreñoGroup CEOBupa Annual Report 202109

Strategic Report Governance Financial StatementsExternal contextHow our strategy is influencedThe environment we operate in is dynamic and fast-changing. This was true even before the pandemic,but the scale and pace of change in the healthcare sector has now been accelerated. The key factors shapingour external environment include both global and sector-specific trends and can be summarised as follows.Global macro trendsOur macroeconomic environmentSustainability & ESG contextThe COVID-19 pandemic triggered a slowdown in mostmajor economies during 2020 but the macroeconomicbackdrop improved throughout 2021Stakeholders are increasingly holding companiesaccountable to higher standards of behaviourSeveral key macroeconomic indicators have improvedin general this year across our markets – such as GDPgrowth and declining unemployment rates – andthese trends have been enabled by vaccine rollouts.Nevertheless, inflationary pressures have increaseddue to a bounce-back in consumer demand and globalsupply chain disruption, and disruption related toCOVID-19 remains a challenge.There is growing alignment among different audiencesthat businesses should be assessed not only on theirfinancial performance, but also on a wider set of factorsaround the broader sustainability and ESG agenda. Theseinclude their environmental impact – in particular, in termsof climate action – but also their impact on society andcommunities, their role as an employer, their corporategovernance practices and ways of working. In this context,acting on meaningful sustainability and broader ESGconsiderations and embedding them in businesspractice is essential for responsible companies.Sectoral trendsExisting long-term trendsEmerging trendsLong-standing trends in the healthcare sectorrelating to demand, affordability and regulationcontinue to influence our strategic choicesHealthcare is becoming increasingly consumer-focusedAgeing populations and rising incidence of chronicillness continue to increase demand for healthcareservices across the world. COVID-19 has heightenedhealth awareness, further increasing demand for healthservices and funding solutions such as private medicalinsurance. At the same time, the scarcity of healthcareprofessionals persists across many countries, andgovernments and regulators continue to focus oncare quality for health provision and on the affordabilityof health funding propositions.Customer preferences are evolving rapidlyas people become increasingly engaged with their ownhealth and expect more personalised services in allaspects of their lives, including healthcare. Delivering abetter customer experience requires highly personalisedhealth products, services and recommendations, anddigitalisation and data will be key to this. COVID-19 hasrapidly accelerated the adoption of digital remote caredelivery, and increased digitalisation of the sector willcontinue over the longer term.In 2021, we introduced a refreshed strategy for Bupa to respond tothese existing and emerging trends and to take Bupa into a new era.10Bupa Annual Report 2021

3x6 strategyDriving Bupa’s transformationOur purposeHelping people live longer, healthier,happier lives and making a better worldOur ambitionTo be the world’s most customer-centric healthcare company3x ambition KPIs40%Customer care touchpointsowned by Bupa60%80Active digitalcustomersNet PromoterScore of 8016x strategic and enabling pillarsCustomersObsession with ourcustomers’ experienceGrowthStrong performanceand governanceSee page 26SustainabilityMaking a positiveimpact on the worldSee page 28TransformationContinuous innovationand preparationSee page 24DataEnhanced data-drivendecision-makingAgile CultureThe best, most diversepeople and a greatplace to workSee page 161. Net Promoter Score (NPS) is a research metric and part of the Net Promoter System which is used by many businesses worldwide. NPS is used to measure customerloyalty and engagement and how likely they are to refer company’s products and services to others.Bupa Annual Report 202111

Strategic Report Governance Financial StatementsGroup CEO’s Q&AQ&A with ourChief Executive OfficerQ. What will be the focus areas of thenew strategy?A.We have set three ambition KPIs and agreed six pillarsto our strategy. Our three ambition KPIs – and they arevery ambitious – define what we want to achieve: 40% of our customers’ care touchpoints will be ownedby Bupa through our physical and digital provision. At least 60% of our customers will fully interact withus digitally. Our Net Promoter Score (NPS) will be 80, in line withthe most customer-centric organisations in the world.Our six strategic and enabling pillars define how we willachieve this. These are: Customers: obsession with our customers’ experience. Growth: strong performance and governance.Iñaki Ereño Group CEO Transformation: continuous innovation and preparation. Sustainability: making a positive impact on the world. Data: enhanced data-driven decision-making.Q. You launched a new strategy this year.Can you talk us through why you didthis and what it led to?A.At the start of 2021, the executive team and I spenttime thinking about Bupa and its place in this changingworld. From these really energising conversationswe decided to refresh Bupa’s strategic fundamentals,our purpose, ambition, strategy and values, in orderto put us in the best place for success into the future.First, we looked at Bupa’s purpose. Our purpose isenduring – ‘Helping people live longer, healthier,happier lives’ – but organisations should adaptand refresh their purpose if a new reality demands it.We know that Bupa’s reality has changed – we havean increasing part to play, not only in the health ofour customers, but also in the health of our planet.That’s why we decided to add the words ‘and makinga better world’ reflecting the strength of our purpose,while recognising our role in the health of our planet.We then discussed our ambition for Bupa and agreedthat we wanted to be ‘the world’s most customercentric healthcare company’. We felt this reflectedour commitment to excellent customer experience,through great service and value, frictionless accessand quality healthcare. We have been aligning ourhealth funding and our health provision assetsbehind this ambition, so that we can achieve it forour customers across the whole of Bupa. Agile Culture: the best, most diverse people anda great place to work.And this is what we are calling the ‘3x6 strategy’.Q. As well as targets and focus areas,what other changes have been made?A.The 3x6 strategy requires us all to think and behavedifferently. We brought about 60 of Bupa’s leaderstogether to work through our set of values. Together,we decided to refresh our values so that they arealigned with our purpose, ambition and strategy.These three values are: Brave: make new possibilities happen. Caring: act with empathy and respect. Responsible: own your decisions and actions.Q. How do you bring a business strategyto life for people when you explain it?A.Our ambition is to be the world’s most customercentric healthcare company. Our 3x6 strategy sets upthe strategic and enabling pillars which underpin ourpurpose and drive us towards achieving that ambition.When I talk about the strategy, I bring it to life throughthe image of an elephant. To explain this, while size andstrength – both of which Bupa certainly has – can bea real asset, even an elephant is not safe if it stays stillor doesn’t adapt to its surroundings.For Bupa, this means we must start to run. We mustfind renewed energy, learn to move faster and flexour muscles. In practice, this means we must pursue12Bupa Annual Report 2021

growth and transformation, while remaining stable atthe same time. Just like an elephant keeps one footon the ground while running, we will build and we willgrow, while also strengthening the solid platform ingovernance and risk management that we havedeveloped in recent years.I call this ‘the run and the change’. This means that weneed to run Bupa and deliver for our customers, at thesame time as transforming our business. And so, withinBupa we now talk about the ‘elephant starting to run’.Q. How then have you brought thestrategy into action across Bupa?A.I am delighted that our people have embraced theidea of running the business while transforming at thesame time. Everyone across Bupa has been workingtogether with pace and agility to apply the strategyacross the business. As a result, we are making somevery meaningful changes. Building an agile culture is about ensuring that we havethe best, most diverse people with the capabilities andmindset to transform Bupa. This means that we haveto learn to work more quickly. We are focused onbeing the best, most diverse place to work and wereally mean it. To find out more, please see our Culturecase study on page 16.We’ve got brilliant people across Bupa, the emblematicprojects are under way and eco-Disruptive has alreadymade a successful start. We are moving forward andI’m excited about the future.Q. What does transformation mean toyou within this strategy?A.Transformation is at the heart of the 3x6 strategy.COVID-19 has also raised the bar for all healthcarecompanies. For future pandemics, any healthcarecompany should be able to provide remote carethrough digital services. We have the opportunityto improve our services and build a frictionlesscustomer experience. If we do this year after year,we will become the most customer-centrichealthcare company.We wanted to show our commitment to the strategicpillars by launching a series of emblematic, Bupa-wideprojects. Each pillar of the strategy has an emblematicproject attached to it which will help us deliver betterexperiences for our customers and our people, as wellas enable us to grow.I see the emblematic projects as targets that wewant every Business Unit of Bupa to be able to usein how they execute the pillars of the 3x6 strategy. Forexample, in the Customer pillar we are tasking each ofour businesses with the target of at least 250 customerexperience improvements per year. In the Agile Culturepillar, we are rolling out a customer listening project,which starts with our global leadership population.By enabling our people to listen to customer calls,they can better connect to the positive and negativeexperiences our customers have with us which in turnshould generate improvement ideas. These are justsome of our initial projects and we will introduce moreas we continue to deliver the strategy.To give you a sense of other relevant projects, pleaseread the case studies on the following pages, whichdemonstrate how we are bringing other parts of the3x6 strategy into action.Q. You spoke about agile culture.Some people say that culturalchange is one of the hardest thingsto achieve in a transformation process.Could you tell us why?A.Because it can mean different things to different people.Culture seems to be the thing that differentiates acompany from others. This pillar of the strategy wasdeliberately called Agile Culture as it involves a visionof the future. To achieve this vision, we need to: Develop our customer listening capabilities andactively improve our cus

21% of r evenu 8% 16.9m customers . 04 Bupa Annual Report 2021 9.6m Total customers See page 42 Europe and . Statutory profit before tax 2 7% at AER, 2020: 396m 907m Net cash generated . a Software as a Service (SaaS) arrangement are accounted for. See Note 1.5 for further detail.