Welcome to the Annual General Meeting of Shareholders AEGON N.V. - - PowerPoint PPT Presentation

welcome to the annual general meeting of shareholders
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Welcome to the Annual General Meeting of Shareholders AEGON N.V. - - PowerPoint PPT Presentation

Welcome to the Annual General Meeting of Shareholders AEGON N.V. Welkom op de jaarlijkse Algemene Vergadering van Aandeelhouders AEGON N.V. In order to hear a simultaneous translation into English, we would like to offer you the use of a


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Local knowledge. Global power. 1

Welcome to the Annual General Meeting of Shareholders AEGON N.V. Welkom op de jaarlijkse Algemene Vergadering van Aandeelhouders AEGON N.V.

In order to hear a simultaneous translation into English, we would like to

  • ffer you the use of a headset. Please, choose channel 4.

Voor het beluisteren van een simultaanvertaling in het Nederlands kunt u gebruikmaken van een koptelefoon. Kies hiervoor kanaal 3.

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Local knowledge. Global power. 2

Dudley Eustace

Chairman Supervisory Board Voorzitter Raad van Commissarissen

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Local knowledge. Global power. 3

Agenda item 1 / Agendapunt 1

Opening Agenda

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Agenda item 2 / Agendapunt 2

Presentation on the course of business and significant events in 2008 Presentatie over de gang van zaken en belangrijke gebeurtenissen in 2008 Agenda

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Local knowledge. Global power. 5

Course of business and significant events in 2008

Alex Wynaendts, CEO & Chairman of the Executive Board

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Local knowledge. Global power. 6

3 1

Strategy update June 2008

2

Reallocate capital towards businesses with higher growth and return prospects Improve growth and returns from existing businesses Manage AEGON as an international group

Strategic priorities to improve performance

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Local knowledge. Global power. 7

Refocus towards businesses with higher growth and return prospects

* New markets = Central & Eastern Europe, Asia and Latin America

40-50% 60%

2007 2008 Target allocation 2012 New markets* Western Europe US 15-25% 40-50% 25-35% 10% 60% 30% Global businesses 5-10% 10% 55% 35%

Capital allocation

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Local knowledge. Global power. 8

Global financial turmoil affected the economy

GDP growth expectations for 20091 (EUR million)

  • 3.0%
  • 1.0%

1.0% Jun 08 Jul 08 Aug 08 Sep 08 Oct 08 Nov 08 Dec 08 Jan 09 Feb 09 US Euro zone UK

100 150 200 250 300 350 1925 1930 1935 1940 1945 1950 1955 1960 1965 1970 1975 1980 1985 1990 1995 2000 2005 2009

Total US credit market debt/GDP3 (%)

  • 1. Source: Consensus Economics Inc. 2008
  • 2. Bloomberg
  • 3. Total US credit market debt measured by the US Federal Reserve includes debt owed by domestic financial services firms, mortgages, corporate debt, federal

government debt, small business debt, consumer debt, state and local government debt, and foreign debt

Credit spread gapping2

Average corporate bond yields (%)

2.0 4.0 6.0 8.0 Dec/02 Dec/03 Dec/04 Dec/05 Dec/06 Dec/07 Dec/08

10 Y Treasury AAA AA BBB

Equity markets2

40 60 80 100 120 140 160 180 2003 2004 2005 2006 2007 2008 2009 AEX (Amsterdam) S&P 500 FTSE 100

Indexed level (December 31, 2002=100)

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Local knowledge. Global power. 9

Maintaining strong capital buffer remains key

Strong capital buffer required

  • Demand for

guarantees

  • Trust

Customers Regulators

  • Focus on capital
  • Take a more

conservative stance Fungibility of capital restricted

Financial markets

  • Volatility
  • Illiquidity
  • Closed capital

markets Increased cost of capital & less availability of capital Increase of required capital

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Local knowledge. Global power. 10

Execution of strategy under difficult circumstances CAPITAL CONTINGENCY COST FOCUS BUSINESS REVIEW

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Local knowledge. Global power. 11

Capital: EUR 1.7 billion of capital released in 2008

  • Active risk reduction and

diversification: – Investment risks – Optimization of asset and liability management – Securitization – Reinsurance transactions

  • Transferring risk through reinsurance
  • ViF securitization
  • Further improvements ALM
  • Sale of risky investments
  • Reinsurance of non-life catastrophic

risk Americas United Kingdom Netherlands Other countries

EUR 1.7 billion of capital released in 2008 through capital preservation and de-risking measures

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Local knowledge. Global power. 12

Americas United Kingdom Netherlands Other countries

  • Salary freeze
  • Staff reductions / deferred hiring:

headcount reduction of ~560

  • Additional savings at various divisions

Cost: planned cost measures of EUR 150 million in 2009

  • Return to 2007 cost base
  • Restructuring program in the

distribution business

  • Reduction in number of contract

services

  • Limited salary increases
  • Operational changes to sourcing and IT
  • Reorganization marketing and customer

services

  • Headcount reduction of ~110
  • Limited salary increases
  • Savings in distribution
  • Cost containment but room for

growth

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Local knowledge. Global power. 13

~89% of common shares ~11% of common shares 100% of preferred shares

Contingency: EUR 3 billion additional core capital structure

AEGON N.V.

Public Market Dutch State Vereniging AEGON

Capital facility EUR 3 billion Non-voting securities EUR 3 billion

EUR EUR

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Local knowledge. Global power. 14

  • Dutch State representation on AEGON Supervisory Board
  • Two seats granted
  • Formal appointment by Annual General Meeting of Shareholders
  • Membership of Audit, Compensation and Nominating Committees
  • State representatives approval required on certain decisions
  • AEGON maintains full discretion to determine dividend on common shares

Contingency: EUR 3 billion additional core capital structure

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Local knowledge. Global power. 15

Business review: continuous assessment of business mix

Measures taken in line with long term strategy

  • Sale of real estate brokerage

US Netherlands

  • New organizational structure
  • Downsizing of institutional spread

based balances in the US

  • Closing down of car credit insurance
  • Merger of broker-dealers
  • Strategic refocus of Canadian

business Canada

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Local knowledge. Global power. 16

Despite market turmoil continued focus on execution of strategy

  • Enhanced position in pension markets Hungary and Poland
  • First step in fast-developing Turkish life insurance and pension market
  • Expanded footprint in Latin America with Brazilian life insurance joint

venture

  • Presence in Spanish bank distribution channel extended
  • Continued roll-out across highly developed coastal provinces and new

asset management joint venture in China

  • Launch of India life insurance and pension business
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Local knowledge. Global power. 17

Remuneration

Alex Wynaendts, CEO & Chairman of the Executive Board Leo van Wijk, Chairman Compensation Committee of the Supervisory Board

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Local knowledge. Global power. 18

Remuneration AEGON

  • Salary freeze for senior management (except for CAO increase in The

Netherlands)

  • Cancellation of worldwide stock option program for all employees,

including management

  • 2008 total variable compensation ~30% below 2007 levels (EUR 75 mln
  • vs. EUR 105 mln)
  • Variable remuneration of senior management restrained as much as

possible in 2009 until a new remuneration policy is in place

  • New remuneration policy to be implemented for senior management in

2010, in line with new Executive Board policy

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Local knowledge. Global power. 19

Remuneration AEGON Executive Board

  • No variable compensation over the year 2008
  • No increase of fixed base salaries in 2009
  • No variable compensation over the year 2009
  • Severance payments limited to 1 year fixed base salary
  • Development of new remuneration policy, to be submitted to the AGM in

2010

  • Base salary Jan Nooitgedagt EUR 700,000

gross per year

  • No sign-on bonus
  • Defined contribution pension plan to which

AEGON will contribute 25% of fixed salary

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Agenda item 2 / Agendapunt 2

Presentation on the course of business and significant events in 2008 Presentatie over de gang van zaken en belangrijke gebeurtenissen in 2008 Agenda

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Agenda item 3 / Agendapunt 3

Annual Report 2008 and Annual Accounts 2008: Proposal to adopt the Annual Accounts 2008 Jaarverslag 2008 en Jaarrekening 2008: Voorstel tot vaststelling van de Jaarrekening 2008 Agenda

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Full year 2008 results

Jos Streppel, Chief Financial Officer

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Strong capital position

EUR 2.9 billion S&P risk-based insurance capital model excess capital in

  • perating units above AA level

and holding

December 31, 2007

EUR 1.6 billion

December 31, 2008

EUR 5.6 billion (183%) Insurance Group Directive (IGD) surplus capital* EUR 6.7 billion (190%)

AEGON’s IGD ratio of 183% compares well with the average for European peers of 144%**

* The calculation of the IGD (Insurance Group Directive) capital surplus and ratio have been changed from the disclosure in the previous year to better reflect regulatory solvency requirements of local regulators and are based on Solvency I capital requirements on IFRS for entities within the EU, and local regulatory solvency measurements for non-EU entities. Specifically, required capital for the life insurance companies in the US is calculated as two times the upper end of the Company Action Level range (200%) as applied by the National Association of Insurance Commissioners in the US. ** Peers include AXA, Aviva, Allianz, CNP, Swiss Life, Prudential plc, Zurich Financial

NAIC RBC ratio 350% 336%

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Local knowledge. Global power. 24

Core capital primarily impacted by unrealized losses

Dec 31, 07 excluding revaluation reserves Net income Movements in foreign currency translation reserves Dividends and coupons on perpetuals (net

  • f tax)

Convertible core capital securities Other changes Dec 31, 08 excluding revaluation reserves Revaluation reserves Dec 31, 08

Core capital* development 2008

(EUR billion)

  • Decline in core capital primarily driven by unrealized losses (revaluation reserve)
  • Widening of credit spreads had a significant impact on unrealized losses
  • Unrealized bond losses are not a good indication for future credit losses

16.2

AEGON did not reclassify securities from available-for-sale to held-to-maturity

(7.2) 3.0 (0.1) 9.1 (0.2) (0.9) (1.1) 15.7

* Core capital is the sum of shareholders’ equity and the EUR 3 billion convertible core capital securities issued to Vereniging AEGON and funded by the Dutch State

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Local knowledge. Global power. 25

Underlying earnings to net income development in 2008 (EUR million)

1,573 (1,619) 35 (1,038) (12) (21) (1,082)

2008 net loss driven by fair value items and impairments

2008 net income mainly impacted by financial markets:

  • Underlying earnings affected by reserves strengthening, DPAC* and lower fees
  • Underperformance of fair value items
  • Impairments on structured assets, financial institutions, high yield and equity
  • Net income also includes an extraordinary tax charge of EUR 490 million

Underlying earnings before tax Fair value items performance Gains on investments Impairment charges Other charges Income tax Net income * Deferred policy acquisition costs

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Local knowledge. Global power. 26

2007 2008 2007 2008

New life sales Americas (USD million)

  • 2008 new life sales down 20% to EUR 2,631 million

– In the Americas Boli/Coli* and life reinsurance drove the decline in sales – UK sales held up well due to growth in individual annuities and corporate pension markets – Dutch new life sales declined although retail life sales were resilient

2007 2008 1,276 945 1,183 1,222 260 219

2008 new life sales impacted by market turmoil

New life sales United Kingdom (GBP million) New life sales The Netherlands (EUR million)

* Bank-owned and corporate-owned life insurance

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Local knowledge. Global power. 27

2007 2008 2007 2008

  • 2008 net deposits of EUR 3.4 billion (+38%)

– Continued strong inflows in institutional fee based products, retirement plans in the US – Strong increase in net deposits driven by fixed annuities

  • 2008 gross deposits of EUR 40.8 billion (-8%)

– Growth of fixed annuities in the US – Other countries higher due to inclusion of asset management JV in China

2007 2008 3,723 3,680 1,567 5,947 755 1,642

Strong deposits drive net inflows

Gross VA* deposits Americas (USD million) Gross FA* deposits Americas (USD million) Total gross deposits Other countries (EUR million)

* VA = Variable annuities; FA = Fixed annuities

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Local knowledge. Global power. 28

2007 2008 2007 2008

Value of new business Americas (USD million after tax)

  • 2008 value of new business down 10% to EUR 837 million

– VNB in Americas up 4% due to a rise in fixed annuities sales – Higher VNB in the UK driven by higher margins – Lower VNB in Other countries mainly due to lower sales in Taiwan – VNB in the Netherlands declined whereas the IRR rose to 10.8%

2007 2008 581 604 157 186 51 43

Strong value of new business

Value of new business United Kingdom (GBP million after tax) Value of new business The Netherlands (EUR million after tax)

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Local knowledge. Global power. 29

Conclusions

  • Earnings clearly impacted by financial markets
  • Core business remains resilient
  • Capital position remains strong
  • Cost reductions underway
  • Adequate contingencies in place

Weathering the storm

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Local knowledge. Global power. 30

Agenda item 3 / Agendapunt 3

Annual Report 2008 and Annual Accounts 2008: Proposal to adopt the Annual Accounts 2008 Jaarverslag 2008 en Jaarrekening 2008: Voorstel tot vaststelling van de Jaarrekening 2008 Agenda

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Voting procedure / Stemprocedure

Voorafgaand aan de stemming

  • Plaats de smartcard aan

de bovenzijde met de goudkleurige chip naar voren

  • Uw naam verschijnt in

het display Tijdens stemming

  • De stemkeuzes verschijnen
  • p het display
  • Druk op toets
  • 1 = Voor
  • 2 = Tegen
  • 3 = Onthouding
  • Uw stemkeuze verschijnt
  • p het display
  • Tijdens de stemperiode

kunt u uw stem wijzigen

  • Uw laatste keuze geldt

Prior to the voting

  • Insert the smartcard

in the device with the golden chip facing you

  • Your name appears in

the display During the voting

  • The voting options appear
  • n the display
  • Press button
  • 1 = For
  • 2 = Against
  • 3 = Abstain
  • Your choice appears on

the display

  • During the voting you

can change your vote

  • Your last choice counts
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Local knowledge. Global power. 32

Agenda item 3 / Agendapunt 3

Annual Report 2008 and Annual Accounts 2008: Proposal to adopt the Annual Accounts 2008 Jaarverslag 2008 en Jaarrekening 2008: Voorstel tot vaststelling van de Jaarrekening 2008 Vote / Stemming

Vote on / Stemming over

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Agenda

Agenda item 4 / Agendapunt 4

Dividend 2008 Dividend over het boekjaar 2008

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  • Dividend policy unchanged - based on capital and cash flow position
  • No final dividend payment on common shares as part of capital

preservation measures

Dividend of EUR 0.30 per share

Dividend (EUR)

0.24 0.30 0.31 0.32 0.55 0.62 0.30 0.30 2006 2007 2008

Interim dividend Final dividend Full year dividend

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Agenda

Agenda item 4 / Agendapunt 4

Dividend 2008 Dividend over het boekjaar 2008

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Agenda

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

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Vote / Stemming

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

Vote on / Stemming over

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Local knowledge. Global power. 38

Agenda

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

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Local knowledge. Global power. 39

Vote / Stemming

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

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Agenda item 7 / Agendapunt 7

Proposal to appoint the independent auditor Voorstel tot benoeming van de externe accountant Agenda

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Vote / Stemming

Vote on / Stemming over Agenda item 7 / Agendapunt 7

Proposal to appoint the independent auditor Voorstel tot benoeming van de externe accountant

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Local knowledge. Global power. 42

Agenda item 8 / Agendapunt 8

Proposal to appoint Mr. J.J. Nooitgedagt to the Executive Board Voorstel tot benoeming van de heer J.J. Nooitgedagt als lid van de Raad van Bestuur Agenda

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Local knowledge. Global power. 43

Proposal to appoint / Voorstel tot benoeming

Curriculum vitae Name / Naam Jan Nooitgedagt Age / Leeftijd 55 Nationality / Nationaliteit Dutch Shares held in the company / Aantal aandelen in de vennootschap None Former occupations / Vorige functies Various positions at Ernst & Young, including Managing Partner for the Netherlands and Belgium, and member of the Global Managing Group Membership of other Boards / Andere bestuursfuncties None

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Agenda item 8 / Agendapunt 8

Proposal to appoint Mr. J.J. Nooitgedagt to the Executive Board Voorstel tot benoeming van de heer J.J. Nooitgedagt als lid van de Raad van Bestuur Agenda

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Local knowledge. Global power. 45

Agenda item 8 / Agendapunt 8

Proposal to appoint Mr. J.J. Nooitgedagt to the Executive Board Voorstel tot benoeming van de heer J.J. Nooitgedagt als lid van de Raad van Bestuur Vote / Stemming

Vote on / Stemming over

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Local knowledge. Global power. 46

Agenda item 9 / Agendapunt 9

Proposal to reappoint Mr. D.G. Eustace to the Supervisory Board Voorstel tot herbenoeming van de heer D.G. Eustace als lid van de Raad van Commissarissen Agenda

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Local knowledge. Global power. 47

Proposal to reappoint / Voorstel tot herbenoeming

Curriculum vitae Name / Naam Dudley Eustace Age / Leeftijd 73 Nationality / Nationaliteit Joint British and Canadian Shares held in the company / Aantal aandelen in de vennootschap None Main occupation / Hoofdfunctie Non-executive board member of various companies Former occupations / Vorige functies Vice-Chairman and CFO of Royal Philips Electronics N.V.; Chairman of Smith & Nephew plc, London UK Other memberships / Andere (bestuurs)functies Member of the European Advisory Council for Rothschilds; Chairman of the Supervisory Board of the Nielsen Company; Member of the Council of the University of Surrey in the United Kingdom

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Agenda item 9 / Agendapunt 9

Proposal to reappoint Mr. D.G. Eustace to the Supervisory Board Voorstel tot herbenoeming van de heer D.G. Eustace als lid van de Raad van Commissarissen Agenda

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Agenda item 9 / Agendapunt 9

Proposal to reappoint Mr. D.G. Eustace to the Supervisory Board Voorstel tot herbenoeming van de heer D.G. Eustace als lid van de Raad van Commissarissen Vote / Stemming

Vote on / Stemming over

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Agenda

Agenda item 10 / Agendapunt 10

Proposal to reappoint Mr. S. Levy to the Supervisory Board Voorstel tot herbenoeming van de heer S. Levy als lid van de Raad van Commissarissen

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Local knowledge. Global power. 51

Proposal to reappoint / Voorstel tot herbenoeming

Curriculum vitae Name / Naam Shemaya Levy Age / Leeftijd 61 Nationality / Nationaliteit French Shares held in the company / Aantal aandelen in de vennootschap None Main occupation / Hoofdfunctie Non-executive director of Nissan Motor Company, Renault Spain and Safran Former occupation / Vorige functie Executive Vice-President and CFO of Renault Group Membership of other Boards / Andere bestuursfuncties Member of the Supervisory Boards of Segula Technologies Group and TNT N.V.

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Agenda

Agenda item 10 / Agendapunt 10

Proposal to reappoint Mr. S. Levy to the Supervisory Board Voorstel tot herbenoeming van de heer S. Levy als lid van de Raad van Commissarissen

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Agenda item 10 / Agendapunt 10

Proposal to reappoint Mr. S. Levy to the Supervisory Board Voorstel tot herbenoeming van de heer S. Levy als lid van de Raad van Commissarissen Vote / Stemming

Vote on / Stemming over

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Agenda item 11 / Agendapunt 11

Proposal to appoint Mr. A.W.H. Docters van Leeuwen to the Supervisory Board Voorstel tot benoeming van de heer A.W.H. Docters van Leeuwen als lid van de Raad van Commissarissen Agenda

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Proposal to appoint / Voorstel tot benoeming

Curriculum vitae Name / Naam Arthur Docters van Leeuwen Age / Leeftijd 63 Nationality / Nationaliteit Dutch Shares held in the company / Aantal aandelen in de vennootschap None Main occupation / Hoofdfunctie Chairman of Holland Financial Centre (until May 1, 2009) Former occupation / Vorige functie Chairman of the Netherlands Authority for the Financial Markets (AFM); Chairman of the Board of Procurators-General of the Netherlands; Director- General of the Security Service of the Netherlands Membership of other Boards / Andere bestuursfuncties Chairman of the Advisory Board of Meesman Investments B.V.; Chairman of the Advisory Board of Independent Risk Solutions; Member of the College of Deans Avicenna Academy for Leadership; Senior Research Fellow at Netherlands School for Public Administration

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Agenda item 11 / Agendapunt 11

Proposal to appoint Mr. A.W.H. Docters van Leeuwen to the Supervisory Board Voorstel tot benoeming van de heer A.W.H. Docters van Leeuwen als lid van de Raad van Commissarissen Agenda

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Agenda item 11 / Agendapunt 11

Proposal to appoint Mr. A.W.H. Docters van Leeuwen to the Supervisory Board Voorstel tot benoeming van de heer A.W.H. Docters van Leeuwen als lid van de Raad van Commissarissen Vote / Stemming

Vote on / Stemming over

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Agenda item 12 / Agendapunt 12

Proposal to authorize the Executive Board to issue common shares Voorstel tot machtiging van de Raad van Bestuur tot uitgifte van gewone aandelen Agenda

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Local knowledge. Global power. 59

Agenda item 12 / Agendapunt 12

Proposal to authorize the Executive Board to issue common shares Voorstel tot machtiging van de Raad van Bestuur tot uitgifte van gewone aandelen Vote / Stemming

Vote on / Stemming over

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Local knowledge. Global power. 60

Agenda item 13 / Agendapunt 13

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 Agenda

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Vote / Stemming

Vote on / Stemming over Agenda item 13 / Agendapunt 13

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

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Agenda

Agenda item 14 / Agendapunt 14

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

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Local knowledge. Global power. 63

Vote / Stemming

Vote on / Stemming over Agenda item 14 / Agendapunt 14

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

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Local knowledge. Global power. 64

Agenda

Agenda item 15 / Agendapunt 15

i. Retirement of Mr. W.F.C. Stevens as a member of the Supervisory Board ii. Retirement of Mr. J.B.M. Streppel as a member of the Executive Board i. Aftreden van de heer W.F.C. Stevens als lid van de Raad van Commissarissen ii. Aftreden van de heer J.B.M. Streppel als lid van de Raad van Bestuur

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Agenda

Agenda item 16 / Agendapunt 16

Any other business Wat verder ter tafel komt

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Agenda

Agenda item 17 / Agendapunt 17

Close of the meeting Sluiting

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Local knowledge. Global power.

Thank you Dank u wel