British Coal Staff Superannuation Scheme Annual General Meeting Overview

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The annual general meeting of the British Coal Staff Superannuation Scheme held in Edinburgh covered important updates on funding, investment, key statistics, and the 2021 actuarial valuation results. Discussions included the Scheme's primary funding aim, increased market volatility, and the challenges posed by increasing regulations in pension schemes regarding environmental, social, and governance factors.

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BRITISH COAL STAFF SUPERANNUATION SCHEME Annual General Meeting Edinburgh 29 September 2022 1

Introduction Dame Kate Barker Chairman of the Committee of Management 2

James Grant Pensioner Representatives John Owen Bleddyn Hancock John Sheldon 3

Appointed Members Kate Barker Chairman of the Committee of Management Alan Whalley Chair of the Risk and Assurance Sub-committee Jim Shearer Chair of the Administration and Benefits Sub committee and the Discretions & Appeals Sub-committee Alan Rubenstein Chair of the Investment Sub-committee 4

AGM Programme 1. Chairman s Report Kate Barker 2. Funding Update & Investment Strategy Alan Rubenstein 3. Key Statistics Karen Barton 4. Written Question & Answers Karen Barton 5. Open Forum Chaired by Kate Barker 6. Chairman s Summary Kate Barker 5

2021 Actuarial Valuation Duty of the Scheme Actuary: Assess the annual returns required over the future to meet the payments due to members and to the Guarantor; Report on the return requirements & confirm if these returns fall within an agreed corridor. 2021 Actuarial Valuation Results: Returns required from the Scheme s assets to meet the future payments to members and the Guarantor have fallen over the period since the 2018 valuation. Required returns are now outside the agreed corridor. Triggered a consultation with the Guarantor - are there any changes to the Scheme s funding and investment strategy that might be beneficial? 6

Funding & Investment Overview Primary funding aim: pay all future benefits to members as they fall due, without requiring funding from the Guarantor Valuation results show the Scheme is well funded relative to this aim However, still need a challenging level of return to achieve, relative to lowrisk assets Increased market volatility in the first three months of 2022 (which has continued) 7

Increasing Regulation Pension schemes face increasing regulatory burden. Environmental - climate, pollution, scarce resources Social - health, education, human rights Governance responsible business, shareholder rights Responsible investing increasing in priority including more regulation and reporting. But focus in all these activities remains on achieving the best financial outcomes for members. 8

Developments & Member Services Custodian services transferred from JP Morgan to Northern Trust on 1 April 2021 Proposed change in how RPI is calculated from 2030 Change expected to reduce pension increases only from 2030 Recent judicial review dismissed by High Court Capita continue to perform well, especially in high priority areas Pension payments, retirements and handling death notifications Working hard on maintaining a positive experience for members Reappointed for 5 more years until 2027 Ongoing success of extra services offered to members Tax help for Older People Wealth at Work 9

Alan Rubenstein Chair of the Investment Sub-committee

Future Scheme Payments & Cash-flows Future Scheme Payments Future pension payments Adjusted Reserve payment (2033) Total 10.8 bn 2.5 bn 13.3 bn Assets & Cash-flows as at 31 March 2022 Asset value Investment Income Annual benefit payments Shortfall 9.8 bn 229 m 573 m 344 m 11

Investment Income 2022 m Dividends from equities Income from fixed income securities Property rents Income from pooled investment vehicles Income from shipping Interest on cash deposits & margin accounts Other Total 32 92 44 48 12 1 0 229 12

Assets at 31 March 2022 Actual m % Cash Government bonds and credit Private credit Public equity Private equity Property and infrastructure Global macro Shipping Other (new) opportunities Total 0.8 26.6 13.0 25.3 14.4 16.9 1.4 0.7 0.9 100.0 79 2,611 1,276 2,483 1,413 1,659 137 69 88 9,815 13

Annualised Returns and Performance Scheme Return % New Previous Benchmark Benchmark % % 1 Year 8.64 4.92 6.44 3 Years 8.07 7.07 8.20 5 Years 7.67 6.23 7.37 14

ESG & the TCFD Report Environmental Green investments Social Russian invasion of Ukraine Governance active engagement with the companies we own ESG considerations are important in all investment decisions Our approach remains on achieving the best financial outcomes for members. TCFD: Align with Framework Scenario Analysis, Metrics Our focus is on data 15

Karen Barton Scheme Secretary

Key Statistics for 2022 Total number of pensioner members Total number of deferred members 43,189 1,623 Total benefits paid and transfers out 573m Net increase in the Fund during the year 218m Net assets of the Scheme at the year-end 9,815m 17

Fund Account (577) million million (573) (4) Pensions & lump sums Administration Expenses Total expenditure Investment income Investment management expenses Increase in market value of investments 585 Net return on investments 229 (19) 795 Net increase in the value of the Fund 218 Net assets at 31 March 2021 9,597 Net assets at 31 March 2022 9,815 18

AGM Written Questions and Answers

Question - Mr Anthony McGarry Can the pensions be paid on a 28 day basis instead of end of month ? This would give us a rise of 1 months extra pension per annum. For example, if a pensioner is currently paid 1,000 a month, then under this proposal he would receive 1,000 every 28 days which would mean instead of receiving 12,000 a year he would receive 13,000 a year. 20