Aegon Ltd. · EURONEXT:AGN
Aegon — Shareholder Meeting (2009)
12 slides from Aegon's shareholder meeting presentation, 2009
Slide 1: Course of business and significant events in 2008
Course of business and significant events in 2008 Alex Wynaendts, CEO & Chairman of the Executive Board Local knowledge. Global power. 1
Slide 2: Strategic priorities to improve performance
Strategy update June 2008 Strategic priorities to improve performance Reallocate capital towards businesses with higher growth and 1 return prospects 2 Improve growth and returns from existing businesses 3 Manage AEGON as an international group Local knowledge. Global power. 2
Slide 3: Refocus towards businesses with higher growth and return prospects
Refocus towards businesses with higher growth and return prospects Capital allocation 5-10% Global businesses 10% 10% 15-25% New markets* 30% 35% 25-35% Western Europe 60% 60% 55% 40-50% 40-50% US 2007 2008 Target allocation 2012 * New markets = Central & Eastern Europe, Asia and Latin America Local
Slide 4: Global financial turmoil affected the economy
Global financial turmoil affected the economy GDP growth expectations for 20091 (EUR million) Total US credit market debt/GDP3 (%) US Euro zone 350 1.0% UK 300 250 -1.0% 200 150 -3.0% 100 Jun Jul Aug Sep Oct Nov Dec Jan Feb 1925 1930 1935 1940 1945 1950 1955 1960 1965 1970 1975 1980 1985 1990
Slide 5: Strong capital buffer required
Strong capital buffer required Financial markets o Volatility o Illiquidity Increased cost of capital & o Closed capital less availability of capital Maintaining markets strong capital Regulators buffer o Focus on capital o Take a more remains key Fungibility of capital restricted conservative stanc
Slide 6: Execution of strategy under difficult circumstances
Execution of strategy under difficult circumstances CAPITAL FOCUS COST CONTINGENCY BUSINESS REVIEW Local knowledge. Global power. 6
Slide 7: Capital: EUR 1.7 billion of capital released in 2008
Capital: EUR 1.7 billion of capital released in 2008 Americas United Kingdom o Transferring risk through reinsurance o Active risk reduction and diversification: o ViF securitization – Investment risks o Further improvements ALM – Optimization of asset and liability Netherlands management – Securiti
Slide 8: Cost: planned cost measures of EUR 150 million in 2009
Cost: planned cost measures of EUR 150 million in 2009 Americas United Kingdom o Salary freeze o Operational changes to sourcing and IT o Staff reductions / deferred hiring: o Reorganization marketing and customer headcount reduction of ~560 services o Additional savings at various divisions o Headc
Slide 9: Contingency: EUR 3 billion additional core capital structure
Contingency: EUR 3 billion additional core capital structure Capital facility EUR 3 billion Public Market Vereniging AEGON Dutch State EUR ~89% of ~11% of 100% of EUR common common preferred Non-voting securities shares shares shares EUR 3 billion AEGON N.V. Local knowledge. Global power. 9
Slide 10: Contingency: Dutch State representation on Supervisory Board
Contingency: EUR 3 billion additional core capital structure o 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 o State representatives approval requi
Slide 11: Business review: continuous assessment of business mix
Business review: continuous assessment of business mix US Netherlands o New organizational structure o Sale of real estate brokerage o Downsizing of institutional spread based balances in the US Other countries o Closing down of car credit insurance o Sale of AEGON Taiwan Life o Merger of broker-dea
Slide 12: Despite market turmoil continued focus on execution of strategy
Despite market turmoil continued focus on execution of strategy o Enhanced position in pension markets Hungary and Poland o First step in fast-developing Turkish life insurance and pension market o Expanded footprint in Latin America with Brazilian life insurance joint venture o Presence in Spanish