Presentation 2013 AGM Aegon N.V. · 15/05/2013 · • iTerm / iHealth – Aegon-Religare (India) Technology driven distribution • Building online distribution channels for insurance

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


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


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


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


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)



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


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


Annual Report 2012

Jaarverslag 2012

39


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


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


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


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


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


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


Proposal to appoint the independent auditor for the Annual Accounts 2013

Voorstel tot benoeming van de externe accountant voor de Jaarrekening 2013

53


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


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


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


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


Proposal to adopt amendments to the Supervisory Board Remuneration Policy

Voorstel tot wijziging van het beloningsbeleid van de Raad van Commissarissen

65


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


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


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


Proposal to reappoint Mr. Shemaya Levy to the Supervisory Board

Voorstel tot herbenoeming van de heer Shemaya Levy als


71


Proposal to appoint Mrs. Dona D. Young to the Supervisory Board

Voorstel tot benoeming van mevrouw Dona D. Young als


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


Proposal to appoint Mrs. Dona D. Young to the Supervisory Board

Voorstel tot benoeming van Mevrouw Dona D. Young als


74


Proposal to authorize the Executive Board to issue common shares

Voorstel tot machtiging van de Raad van Bestuur tot uitgifte

van gewone aandelen

75


Proposal to authorize the Executive Board to issue common shares

Voorstel tot machtiging van de Raad van Bestuur tot uitgifte

van gewone aandelen

76


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


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


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


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


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


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


Any other business

Wat verder ter tafel komt

83


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

Documents

Presentation 2013 AGM Aegon N.V. · 15/05/2013 · • iTerm / iHealth – Aegon-Religare (India) Technology driven distribution • Building online distribution channels for insurance