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The Hague - May 15, 2013
Annual General Meeting of Shareholders Aegon N.V. Jaarlijkse Algemene Vergadering van Aandeelhouders Aegon N.V.
2
Welcome to the annual General Meeting of Shareholders
Welkom op de jaarlijkse Algemene Vergadering
van Aandeelhouders
In order to hear a simultaneous translation into English, please choose channel 2
Voor het beluisteren van een simultaanvertaling in het
Nederlands kiest u kanaal 1
3
Rob Routs
Chairman Supervisory Board
Voorzitter Raad van Commissarissen
4
Agenda item 1 / Agendapunt 1
Opening
5
Agenda item 2 / Agendapunt 2
Presentation on the course of business in 2012
Presentatie over de gang van zaken in 2012
Transform Tomorrow
Alex Wynaendts, CEO & Chairman of the Executive Board
7
2012: A year of strategic progress
2012 Strong financial performance Sales Earnings Capital position
Executing on strategic transformation Getting closer to our customers
8
Strong results following execution of strategy
1,522 1,787
2011 2012
Sales (EUR billion)
Operating expenses (EUR million)
Underlying earnings before tax (EUR million)
Operational free cash flows
(EUR billion)
5.7 6.7
2011 2012
3,442
3,241
2011 2012
1.2 1.6
2011* 2012*
Fee-based earnings (% of UEBT)
Return on equity (%)
30 33
2011 2012
6.7 7.1
2011 2012
* Excluding market impact
9
Maintaining strong capital position – a strategic necessity
2011 2012
195% 228%
Solvency ratio (IGD)
%
Holding excess capital of EUR 2 billion • Aegon aims to maintain excess capital
level of at least EUR 750 million
Strong solvency ratios operating units AA- financial strength rating S&P
maintained • Stable outlook • Reflection of strong capital position
Total dividend of EUR 0.21 - Proposed final dividend of EUR 0.11
10
Positive shareprice development
3.129
3.548
3.930
4.164
3.489 3.406
3.644 3.707
4.083 4.045
4.308
4.423
4.803
Jan Feb Mar April May June July Aug Sept Oct Nov Dec
+55%
11
Aegon’s mission & purpose
We exist to help people take responsibility for their financial future...
Across their lifecycle
12
Our products and services have never been more needed…
Increasing longevity and aging populations
Fundamentally changing demands
Reduced safety nets
Economic uncertainty Financial market volatility
Protection
Accumulation
At & After Retirement
Our Expertise Trends
13
Delivering on our promises
Paid out in CLAIMS AND
BENEFITS to our customers:
€ 21 billion
Invested in LOCAL COMMUNITIES
around the world:
€ 6 million
IMPACT INVESTMENTS:
€ 3.6 billion
14
We need to get much closer to the people who depend on us...
...by accelerating investments in innovation and technology...
15
Delivering on Aegon’s strategic priorities
16
Optimizing Aegon’s portfolio
%
On track to shift from spread to fee generating business • 33% of earnings coming from fee business
New strategic distribution agreements in place
Growing our businesses • Acquisition of Fidem Life in Ukraine • Acquisition of Eureko’s life and pensions business in Romania
Successful repositioning of Spanish business • Divestments of three partnerships with local savings banks • Exclusive distribution agreement with Banco Santander
17
Enhancing customer loyalty
%
Improving digital customer relationships • Launch TransamericaDirect.com – offering online insurance solutions • Facebook insurer Kroodle in NL • iTerm / iHealth – Aegon-Religare (India)
Technology driven distribution • Building online distribution channels for insurance in various markets • Early signs of success for Aegon Retirement Choices platform in the UK • Introducing online financial planning tool for agents
Local initiatives are being leveraged into other markets
Net Promoter Score – Rolled out to 75% of our businesses
18
Delivering operational excellence
%
Strong delivery on expense control… • Stable expense level in the US • 25% cost reduction in the UK • 20% cost reduction in the Netherlands
…while investing in new propositions
• Innovative new products • Expanded distribution • Successful introduction of new business propositions
High scores in Dow Jones Sustainability Index
19
Empowering Aegon’s employees
%
Strategy engagement well under way • Ensuring that all employees understand what Aegon’s strategy means
for their day-to-day activities
Clear approach towards talent management
• By providing tools, training and internal culture necessary to enhance personal and professional capabilities
2013 Global Employee Survey – scores significantly
increased
20
Engaging and enabling Aegon employees
63 67
2011 2013
Engagement The degree to which employees feel committed and motivated
Enablement The degree to which employees feel they can make a difference
64 67
2011 2013
21
Most recommended
Strong positions
Trusted and respected
Our ambition: To become a leader in our chosen markets
By customers By business partners By employees as most preferred
employer
In our chosen markets In customer service measurements In our risk profile & capital position
Trusted products and services Responsible investments In our communities
23
Agenda item 2 / Agendapunt 2
Presentation on the course of business in 2012
Presentatie over de gang van zaken in 2012
24
Agenda item 3.1 / Agendapunt 3.1
Annual Report 2012
Jaarverslag 2012
Transform Tomorrow
Jan Nooitgedagt, CFO & Member of the Executive Board
26
Financial markets have improved, but remain challenging
20 30 40 50 60 70 80 90
100 110 120
Jan-08 Jan-09 Jan-10 Jan-11 Jan-12 Jan-13
S&P 500
FTSE
AEX
1
2
3
4
5
6
Jan-08 Jan-09 Jan-10 Jan-11 Jan-12 Jan-13
US
UK
NL
0
500
1000
1500
2000
2500
Jan-10 Jan-11 Jan-12 Jan-13
Portugal
Ireland
Spain
Italy
-14
-12
-10
-8
-6
-4
-2
0
2
Jan-07 Jan-08 Jan-09 Jan-10 Jan-11 Jan-12 Jan-13
Bloomberg Financial Conditions Index EU Bloomberg Financial Conditions Index US
Strengthening of equity markets (January 2008 = 100)
Drop in financial market stress indicators
Drop in Eurozone sovereign spreads (2-year bonds, bps)
However, interest rates remain persistently low
27
Americas: Earnings up on business growth and a stronger dollar
The Netherlands: Increase due to cost savings, lower funding costs, and the wind up of several contracts in Pensions
UK: Earnings up on cost reductions and non-recurrence of exceptional charges
New markets: Higher results from Aegon Asset Management and Asia partly offset by Spain and Central & Eastern Europe
Holding & other: Improved as part of corporate center expenses being charged to the units
Earnings up 17% on growth, cost reductions and favorable markets
1,522
1,787
2011 2012
Underlying earnings before tax (EUR million)
28
Fair value items gain
Realized gains on investments
Lower impairments
Charge related to acceleration of product improvements for unit-linked policies in the Netherlands
Book gains on divestments – Prisma and Banca Cívica joint venture
Net income benefits from fair value items and investment gains
872
1,571
2011 2012
Net income (EUR million)
29
EUR 188 million in cost reductions
Non-recurrence of restructuring charges
6% lower year-on-year cost base
Cost reductions in Americas; successful restructuring programs in UK and the Netherlands
Operating expenses include continued investments in new propositions
Operating expenses reduced by 6% while investing in new propositions
Operating expenses (EUR million)
3,442
3,241
2011 2012
30
New life sales increase 7% to EUR 2 billion
Gross deposits 25% higher at EUR 39.5 billion
Accident & health and general insurance up 18% to EUR 823 million
Focus on profitable new business demonstrated by higher MCVNB of EUR 619 million
Sales increase demonstrates strength of franchise
* Total sales consists of new life sales, new premiums accident & health, general insurance and 1/10 of gross deposits
Sales (EUR billion)
5.7
6.7
2011 2012
31
Continued delivery of strong results in first quarter
439 461 445
Q1 12 Q4 12 Q1 13
Sales/MCVNB (EUR million)
Operating expenses (EUR million)
Underlying earnings before tax (EUR million)
Operational free cash flows*
(EUR million)
1,758 1,813 1,738
125 204 232
Q1 12 Q4 12 Q1 13
766 835 804
Q1 12 Q4 12 Q1 13
405 619 560
Q1 12 Q4 12 Q1 13
Fee-based earnings (% of UEBT)
Return on equity (%)
35 36 33
Q1 12 Q4 12 Q1 13
7.1 7.4 6.3
Q1 12 Q4 12 Q1 13
* Excluding market impact
Market consistent value new business
32
Excess capital in holding: EUR 1.8 billion at end first quarter 2013
Continued strong capital position at the end of the first quarter
224% ~485% ~120% ~265%
Group IGD
US RBC ratio
UK Pillar I
Netherlands IGD
33
Strong growth in earnings and profitable sales
Maintained strong capital position
Operating expenses reduced while investing in new propositions
Distribution expanded – new partners, platforms and on-line propositions
2012 a strong basis for the future
Well positioned for the future
34
Agenda item 3.1 / Agendapunt 3.1
Annual Report 2012
Jaarverslag 2012
35
Aegon Global Remuneration Framework applies throughout Aegon to comply with European and Dutch regulations for financial institutions
The Executive Board policy was adopted by the AGM on May 12th 2011 ► The Executive Board policy already complied with DNB requirements, some
refinements were implemented
► No further changes to the Executive Board policy since then
Pending regulatory and/or legislative changes, future changes are to be expected
Remuneration policy
36
Remuneration in 2012
► Fixed compensation paid in 2012 was increased to reflect cost of living increases awarded previously to all Aegon staff in The Netherlands
► The Executive Board decided to forego the cash payment payable in 2012 over Aegon’s 2011 performance year
► Some variable compensation regarding previous years vested (Shares), further holding applies to most of these.
Conditional Variable Compensation over 2012
► Number of shares made available in 2013, related to 2012, is 65,111 and 44,741 for Mr. Wynaendts and Mr. Nooitgedagt respectively
► Variable Compensation in cash over 2012, payable in 2013, is EUR 203,536 and EUR 139,859 for Mr. Wynaendts and Mr. Nooitgedagt respectively
► The remaining part (60%) of conditional variable compensation over the performance year 2012 (both cash and shares) is to be paid out in future years subject to ex-post assessments
Executive Board remuneration 2012
37
Variable compensation based on: ► Financial and non-financial targets (75%)
• Underlying earnings after tax • Return on equity • Market consistent value of new business • Return on economic required capital • Strategy/Sustainability: - Aegon’s score for the Dow Jones Sustainability Index
- Employee engagement scores
► Personal targets (25%) • Large projects/issues – e.g. balance sheet management, CC-reorganization • Strategy execution • HR and Sustainability related subjects – e.g. talent development, succession planning
Executive Board remuneration 2013
38
Agenda item 3.1 / Agendapunt 3.1
Annual Report 2012
Jaarverslag 2012
39
Agenda item 3.2 / Agendapunt 3.2
Annual Accounts 2012:
Proposal to adopt the Annual Accounts 2012
Jaarrekening 2012:
Voorstel tot vaststelling van de Jaarrekening 2012
40
Voting procedure / Stemprocedure
Prior to the voting: – Insert card with chip facing you – Name appears in display
During the voting: – Voting options appear in display – Press button:
1 = For 2 = Against 3 = Abstain
– Choice appears in display – During voting you can change
your vote – Last choice counts
Vóór de stemming: – Plaats kaart met chip naar voren – Naam verschijnt in venster
Tijdens de stemming: – Stemkeuzes verschijnen in venster – Maak uw keuze:
1 = Vóór 2 = Tegen 3 = Onthouding
– Keuze verschijnt in venster – Tijdens stemming kunt u uw keuze
wijzigen – Laatste keuze geldt
41
Vote on / Stemming over: Agenda item 3.2 / Agendapunt 3.2
Annual Accounts 2012:
Proposal to adopt the Annual Accounts 2012
Jaarrekening 2012:
Voorstel tot vaststelling van de Jaarrekening 2012
42
Agenda item 4 / Agendapunt 4
Proposal to approve the final dividend 2012
Voorstel tot goedkeuring van het slotdividend over het boekjaar 2012
43
Aiming for a sustainable dividend, which can grow over time if performance of the company allows so
Cash flows received from operating units are used for holding expenses, including funding costs
Cash flows after holding expenses available to execute strategy and to fund dividends ► Balance prudence versus offering an attractive dividend ► Local insurance regulations
Aegon’s dividend policy
44
Proposed final dividend for 2012 of EUR 0.11 per common share
► Results in total dividend for 2012 of EUR 0.21 per common share
To be paid in cash or stock
Value of stock dividend approximately equal to cash dividend
Aegon’s dividend proposal
45
Vote on / Stemming over: Agenda item 4 / Agendapunt 4
Proposal to approve the final dividend 2012
Voorstel tot goedkeuring van het slotdividend over het boekjaar 2012
46
Agenda item 5 / Agendapunt 5
Proposal to release the members of the Executive Board from liability for their duties
Voorstel tot het verlenen van kwijting aan de leden van de Raad van Bestuur
47
Vote on / Stemming over: Agenda item 5 / Agendapunt 5
Proposal to release the members of the Executive Board from liability for their duties
Voorstel tot het verlenen van kwijting aan de leden van de Raad van Bestuur
48
Agenda item 6 / Agendapunt 6
Proposal to release the members of the Supervisory Board from liability
for their duties
Voorstel tot het verlenen van kwijting aan de leden van de Raad van Commissarissen
49
Vote on / Stemming over: Agenda item 6 / Agendapunt 6
Proposal to release the members of the Supervisory Board from liability
for their duties
Voorstel tot het verlenen van kwijting aan de leden van de Raad van Commissarissen
50
Agenda item 7.1 & 7.2 / Agendapunt 7.1 & 7.2
Proposal to appoint the independent auditor for the Annual Accounts 2013 and for the Annual Accounts 2014-2016
Voorstel tot benoeming van de externe accountant voor de Jaarrekening 2013
en voor de Jaarrekeningen 2014-2016
51
Proposal to reappoint Ernst & Young for 2013 accounts
Proposal to appoint PwC for 2014-2016 accounts ► Result of competitive tender process
► Consistent with sound corporate governance principles
Appointment independent auditor for Annual Accounts 2013 and 2014-2016
52
Vote on / Stemming over: Agenda item 7.1 / Agendapunt 7.1
Proposal to appoint the independent auditor for the Annual Accounts 2013
Voorstel tot benoeming van de externe accountant voor de Jaarrekening 2013
53
Vote on / Stemming over: Agenda item 7.2 / Agendapunt 7.2
Proposal to appoint the independent auditor for the Annual Accounts 2014-2016
Voorstel tot benoeming van de externe accountant voor de Jaarrekeningen 2014-2016
54
Agenda item 8 / Agendapunt 8
Proposal to adopt amendments to the capital structure, including a proposal to amend the Articles of Association
Voorstel tot wijziging van de kapitaalstructuur, inclusief voorstel tot statutenwijziging
55
Proposal consists of the following elements:
1. Return of EUR 400 million of share premium in cash to Vereniging Aegon
2. Amendment of Articles of Association of Aegon N.V., including conversion of all
preferred shares into common shares and common shares B
3. Amendment of Voting Rights Agreement between Aegon and Vereniging Aegon
4. Amendment of 1983 Merger Agreement between Aegon and Vereniging Aegon
Approval will result in a simplified capital structure for Aegon while enabling the company to maintain a high-quality capital base under new European solvency requirements
Proposal to adopt amendments to the capital structure
56 56
1. Cash repayment to Vereniging Aegon of EUR 400 million
Repayment of EUR 400 million of share premium in cash to Vereniging Aegon, as part of the Preferred Shares Amendment Plan ► To be paid out of excess capital
Shareholders' equity YE2012
Cash payment from Aegon
Pro forma shareholders' equity YE2012
Development of shareholders’ equity (EUR billion) 24.7 (0.4) 24.3
2.1
22.6 Preferred shares Common shareholders’ equity
57
2. Amendment Articles of Association of Aegon N.V.
Preferred shares Common shares & common shares B
Nominal value EUR 82m Nominal value EUR 82m
Preferred shares will be converted into common shares and commons shares B ► Aggregate nominal value before and after conversion will be the same ► Special Cause voting rights of 32.6% maintained
Fair value preferred shares determined at EUR 1.1 billion (53% of book value) Number of new common shares and common shares B is based on volume-
weighted average price of common shares of EUR 4.86 (February 15-28)
Book value EUR 2.1 billion
Book value EUR 655 million
Conversion
Preferred shares converted into common shares and common shares B
58
Ordinary Course voting rights ► Vereniging Aegon will no longer exercise more voting rights than is proportionate to the
financial interests represented by its shares ► Vereniging Aegon may cast 1 vote for every common share it holds and 1 vote for
every 40 common shares B, being in total 14.8% of total voting right
Special Cause voting rights ► Vereniging Aegon may cast 1 vote for every common share and 1 vote for every
common share B ► Resulting in Special Cause voting right of 32.6%
• Vereniging Aegon may not cast 1 vote for every common share B if as a consequence total voting rights exceed 32.6%. This maximum previously did not exist
► Definition of Special Cause unchanged
3. Amendment of the Voting Rights Agreement
59
Vereniging Aegon may exercise its call option to keep or restore its total stake at 32.6% ► Not limited to the event of a dilution resulting from an issuance by Aegon
4. Amendment of the 1983 Merger Agreement
Current situation # of shares in million
Market value in million
Ordinary course % of votes
Special cause % of votes
Common shares 172 835 7.6% 6.5% Preferred shares A 212 1,122 9.3% 16.8% Preferred shares B 118 16 5.2% 9.3%
502 1,973 22.1% 32.6%
After exchange # of shares in million
Market value in million
Ordinary course % of votes
Special cause % of votes
Common shares 293 1,421 14.1% 11.1% Common shares B 566 69 0.7% 21.5%
859 1,490 14.8% 32.6%
Vereniging Aegon voting rights
Note: Voting rights agreement available on Aegon.com
60
Balanced outcome for all stakeholders
Vereniging Aegon
Substantial reduction of outstanding debt Vereniging Aegon maintains substantial common share position in Aegon Retention special cause voting rights through creation of new class of shares
Common shareholders
& bondholders
Simplified and improved capital structure Improved interest cover for Aegon - payment of preferred dividend will end Limited dilutive effect for common shareholders No economic preferential status for a single shareholder Voting rights of Vereniging Aegon in line with economic ownership Long-term commitment from Vereniging Aegon reaffirmed
Regulatory
Allowed to classify hybrid capital as Tier 1 under new solvency rules Improved interest cover for Aegon - payment of preferred dividend will end
61
Vote on / Stemming over: Agenda item 8 / Agendapunt 8
Proposal to adopt amendments to the capital structure, including a proposal to amend the Articles of Association
Voorstel tot wijziging van de kapitaalstructuur, inclusief voorstel tot statutenwijziging
62
Agenda item 9 / Agendapunt 9
Proposal to adopt amendments to the Supervisory Board Remuneration Policy
Voorstel tot wijziging van het beloningsbeleid van de Raad van Commissarissen
63
Proposal to adjust fees is based on: ► Increase in workload and responsibilities over a number of years (esp. Chairmen) ► Rise in complexity (e.g. new remuneration regulations, Solvency II, etc) ► Stricter demands re. qualifications and experience ► No change to fees for a number of years ► Benchmarked against both NL-peers and European peer group (2-tier boards)
Proposal ► Base fee Chairman Supervisory Board EUR 60,000 to EUR 80,000 ► Base fee Chairmen Committees + EUR 3,000 (e.g. EUR 7,000 to EUR 10,000) ► Attendance fee for most committees + EUR 750 (from EUR 1,250 to EUR 2,000) ► Fixed fee for intercontinental travel of EUR 3,000 (to replace present complex system of
varying committee fees)
Changes to remuneration of individual SB-members range from +3% to +30% depending on the above factors. Average increase is around 14%
Supervisory Board remuneration 2013
64
Vote on / Stemming over: Agenda item 9 / Agendapunt 9
Proposal to adopt amendments to the Supervisory Board Remuneration Policy
Voorstel tot wijziging van het beloningsbeleid van de Raad van Commissarissen
65
Agenda item 10 / Agendapunt 10
Proposal to appoint Mr. Darryl D. Button to the Executive Board
Voorstel tot benoeming van de heer Darryl D. Button als lid van de Raad van Bestuur
66
Darryl D. Button
Age: 43 Nationality: Canadian Shares held in the company /Aantal aandelen in de vennootschap: – 7,163 common shares Main occupation/huidige functie: – Head of Corporate Financial Center of Aegon N.V. Membership of other outside boards/Andere bestuursfuncties: – None
67
Vote on / Stemming over: Agenda item 10 / Agendapunt 10
Proposal to appoint Mr. Darryl D. Button to the Executive Board
Voorstel tot benoeming van de heer Darryl D. Button als lid van de Raad van Bestuur
68
Agenda item 11 / Agendapunt 11
Proposal to reappoint Mr. Shemaya Levy to the Supervisory Board
Voorstel tot herbenoeming van de heer Shemaya Levy als
lid van de Raad van Commissarissen
69
Age: 65 Nationality: French Shares held in the company /Aantal aandelen in de vennootschap: – None Memberships other boards/Andere bestuursfuncties – Member of the Supervisory Board of TNT Express N.V. – Member of the Board of Directors of PKC Group Oyj
Not listed – Member of the Board of Directors of Segula Technologies
Group S.A.
Shemaya Levy
70
Vote on / Stemming over: Agenda item 11 / Agendapunt 11
Proposal to reappoint Mr. Shemaya Levy to the Supervisory Board
Voorstel tot herbenoeming van de heer Shemaya Levy als
lid van de Raad van Commissarissen
71
Agenda item 12 / Agendapunt 12
Proposal to appoint Mrs. Dona D. Young to the Supervisory Board
Voorstel tot benoeming van mevrouw Dona D. Young als
lid van de Raad van Commissarissen
72
Age: 59 Nationality: American Shares held in the company /Aantal aandelen in de vennootschap: – None Memberships other boards/Andere bestuursfuncties – Member of the Board of Directors of Footlocker
Dona D. Young
73
Vote on / Stemming over: Agenda item 12 / Agendapunt 12
Proposal to appoint Mrs. Dona D. Young to the Supervisory Board
Voorstel tot benoeming van Mevrouw Dona D. Young als
lid van de Raad van Commissarissen
74
Agenda item 13 / Agendapunt 13
Proposal to authorize the Executive Board to issue common shares
Voorstel tot machtiging van de Raad van Bestuur tot uitgifte
van gewone aandelen
75
Vote on / Stemming over: Agenda item 13 / Agendapunt 13
Proposal to authorize the Executive Board to issue common shares
Voorstel tot machtiging van de Raad van Bestuur tot uitgifte
van gewone aandelen
76
Agenda item 14 / Agendapunt 14
Proposal to authorize the Executive Board to restrict or exclude pre-emptive rights upon
issuing common shares
Voorstel tot machtiging van de Raad van Bestuur tot beperking of uitsluiting
van voorkeursrechten bij de uitgifte van gewone aandelen
77
Vote on / Stemming over: Agenda item 14 / Agendapunt 14
Proposal to authorize the Executive Board to restrict or exclude pre-emptive rights upon
issuing common shares
Voorstel tot machtiging van de Raad van Bestuur tot beperking of uitsluiting
van voorkeursrechten bij de uitgifte van gewone aandelen
78
Agenda item 15 / Agendapunt 15
Proposal to authorize the Executive Board to issue common shares under
incentive plans
Voorstel tot machtiging van de Raad van Bestuur tot uitgifte van gewone
aandelen in het kader van incentive-plannen
79
Vote on / Stemming over: Agenda item 15 / Agendapunt 15
Proposal to authorize the Executive Board to issue common shares under
incentive plans
Voorstel tot machtiging van de Raad van Bestuur tot uitgifte van gewone
aandelen in het kader van incentive-plannen
80
Agenda item 16 / Agendapunt 16
Proposal to authorize the Executive Board to acquire shares in the company
Voorstel tot machtiging van de Raad van Bestuur tot verkrijging van eigen
aandelen door de vennootschap
81
Vote on / Stemming over: Agenda item 16 / Agendapunt 16
Proposal to authorize the Executive Board to acquire shares in the company
Voorstel tot machtiging van de Raad van Bestuur tot verkrijging van eigen
aandelen door de vennootschap
82
Agenda item 17 / Agendapunt 17
Any other business
Wat verder ter tafel komt
83
Agenda item 18 / Agendapunt 18
Close of the meeting
Sluiting van de vergadering
84
Thank you – Dank u wel
85 85
Please return your voting device and voting card before departing
Wilt u voor uw vertrek uw stemkastje
en stempas inleveren
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