Aegon Ltd. · EURONEXT:AGN
Aegon — Shareholder Meeting (May 2013)
85 slides from Aegon's shareholder meeting presentation, May 15, 2013
Slide 1: Annual General Meeting of Shareholders Aegon N.V.
The Hague - May 15, 2013 Annual General Meeting of Shareholders Aegon N.V. Jaarlijkse Algemene Vergadering van Aandeelhouders Aegon N.V.
Slide 2: Welcome to the annual General Meeting of Shareholders
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 2
Slide 3: Rob Routs, Chairman Supervisory Board
Rob Routs Chairman Supervisory Board Voorzitter Raad van Commissarissen 3
Slide 4: Opening
Agenda item 1 / Agendapunt 1 Opening 4
Slide 5: Presentation on the course of business in 2012
Agenda item 2 / Agendapunt 2 Presentation on the course of business in 2012 Presentatie over de gang van zaken in 2012 5
Slide 6: Transform Tomorrow
Transform Tomorrow Alex Wynaendts, CEO & Chairman of the Executive Board
Slide 7: 2012: A year of strategic progress
2012: A year of strategic progress 2012 Strong financial performance Executing on strategic Sales transformation Earnings Getting closer to our customers Capital position 7
Slide 8: Strong results following execution of strategy
Strong results following execution of strategy Underlying earnings before tax Fee-based earnings Sales (EUR million) (% of UEBT) (EUR billion) 1,787 33 6.7 30 1,522 5.7 2011 2012 2011 2012 2011 2012 Return on equity Operational free cash flows Operating expenses (%) (EUR billion) (EUR million) 1.6 3
Slide 9: Maintaining strong capital position – a strategic necessity
Maintaining strong capital position – a strategic necessity 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 195% 228% maintained • S
Slide 10: Positive shareprice development
Positive shareprice development 4.803 4.423 4.308 +55% 4.164 4.083 4.045 3.930 3.707 3.644 3.548 3.489 3.406 3.129 Jan Feb Mar April May June July Aug Sept Oct Nov Dec 10
Slide 11: Aegon's mission & purpose
Aegon’s mission & purpose We exist to help people take responsibility for their financial future... Across their lifecycle 11
Slide 12: Our products and services have never been more needed
Our products and services have never been more needed… Trends Our Expertise Increasing longevity and aging populations Protection Fundamentally changing demands Reduced safety nets Accumulation Economic uncertainty Financial market volatility At & After Retirement 12
Slide 13: Delivering on our promises
Delivering on our promises Paid out in Invested in LOCAL IMPACT CLAIMS AND COMMUNITIES INVESTMENTS: BENEFITS to our around the world: customers: € 21 €6 € 3.6 billion million billion 13
Slide 14: We need to get much closer to the people who depend on us
We need to get much closer to the people who depend on us... ...by accelerating investments in innovation and technology... 14
Slide 15: Delivering on Aegon's strategic priorities
Delivering on Aegon’s strategic priorities 15
Slide 16: Optimizing Aegon's portfolio
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 i
Slide 17: Enhancing customer loyalty
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 insuran
Slide 18: Delivering operational excellence
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
Slide 19: Empowering Aegon's employees
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 prof
Slide 20: Engaging and enabling Aegon employees
Engaging and enabling Aegon employees Engagement Enablement The degree to which employees feel committed The degree to which employees feel they can and motivated make a difference 67 67 63 64 2011 2013 2011 2013 20
Slide 21: Our ambition: To become a leader in our chosen markets
Our ambition: To become a leader in our chosen markets By customers By business partners Most recommended By employees as most preferred employer In our chosen markets Strong positions In customer service measurements In our risk profile & capital position Trusted products and services
Slide 22: Transform Tomorrow
‘EGON Transform Tomorrow
Slide 23: Presentation on the course of business in 2012
Agenda item 2 / Agendapunt 2 Presentation on the course of business in 2012 Presentatie over de gang van zaken in 2012 23
Slide 24: Annual Report 2012
Agenda item 3.1 / Agendapunt 3.1 Annual Report 2012 Jaarverslag 2012 24
Slide 25: Transform Tomorrow
Transform Tomorrow Jan Nooitgedagt, CFO & Member of the Executive Board
Slide 26: Financial markets have improved, but remain challenging
Financial markets have improved, but remain challenging Strengthening of equity markets Drop in financial market stress indicators (January 2008 = 100) 120 2 110 0 100 -2 90 80 -4 S&P 500 70 -6 FTSE 60 -8 AEX Bloomberg Financial 50 Conditions Index EU -10 40 Bloomberg Financial -12 Conditions Index
Slide 27: Earnings up 17% on growth, cost reductions and favorable markets
Earnings up 17% on growth, cost reductions and favorable markets Underlying earnings before tax Americas: Earnings up on business (EUR million) growth and a stronger dollar The Netherlands: Increase due to cost savings, lower funding costs, and the wind up of several contracts in Pensions 1,787
Slide 28: Net income benefits from fair value items and investment gains
Net income benefits from fair value items and investment gains Net income Fair value items gain (EUR million) Realized gains on investments Lower impairments 1,571 872 Charge related to acceleration of product improvements for unit- 2011 2012 linked policies in the Netherlands Book gains o
Slide 29: Operating expenses reduced by 6% while investing in new propositions
Operating expenses reduced by 6% while investing in new propositions Operating expenses EUR 188 million in cost reductions (EUR million) Non-recurrence of restructuring charges 3,442 6% lower year-on-year cost base 3,241 Cost reductions in Americas; successful restructuring programs in UK an
Slide 30: Sales increase demonstrates strength of franchise
Sales increase demonstrates strength of franchise Sales New life sales increase 7% to (EUR billion) EUR 2 billion Gross deposits 25% higher at EUR 39.5 billion 6.7 Accident & health and general 5.7 insurance up 18% to EUR 823 million 2011 2012 Focus on profitable new business demonstrated by
Slide 31: Continued delivery of strong results in first quarter
Continued delivery of strong results in first quarter Underlying earnings before tax Fee-based earnings Sales/MCVNB (EUR million) (% of UEBT) (EUR million) 1,758 1,813 1,738 461 445 35 36 33 439 204 232 125 Q1 12 Q4 12 Q1 13 Q1 12 Q4 12 Q1 13 Q1 12 Q4 12 Q1 13 Market consistent value new business
Slide 32: Continued strong capital position at the end of the first quarter
Continued strong capital position at the end of the first quarter Group US Netherlands UK IGD RBC ratio IGD Pillar I 224% ~485% ~265% ~120% Excess capital in holding: EUR 1.8 billion at end first quarter 2013 32
Slide 33: 2012 a strong basis for the future
2012 a strong basis for the future 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 Well positioned for the future 33
Slide 34: Annual Report 2012
Agenda item 3.1 / Agendapunt 3.1 Annual Report 2012 Jaarverslag 2012 34
Slide 35: Remuneration policy
Remuneration policy 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 r
Slide 36: Executive Board remuneration 2012
Executive Board remuneration 2012 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 y
Slide 37: Executive Board remuneration 2013
Executive Board remuneration 2013 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 Jo
Slide 38: Annual Report 2012
Agenda item 3.1 / Agendapunt 3.1 Annual Report 2012 Jaarverslag 2012 38
Slide 39: Annual Accounts 2012: Proposal to adopt
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 39
Slide 40: Voting procedure / Stemprocedure
Voting procedure / Stemprocedure Prior to the voting: Vóór de stemming: – Insert card with chip facing you – Plaats kaart met chip naar voren – Name appears in display – Naam verschijnt in venster During the voting: Tijdens de stemming: – Voting options appear in display – Stemkeuzes verschijnen in
Slide 41: Annual Accounts 2012: Vote
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 41
Slide 42: Proposal to approve the final dividend 2012
Agenda item 4 / Agendapunt 4 Proposal to approve the final dividend 2012 Voorstel tot goedkeuring van het slotdividend over het boekjaar 2012 42
Slide 43: Aegon's dividend policy
Aegon’s dividend policy 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 fun
Slide 44: Aegon's dividend proposal
Aegon’s dividend proposal 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 44
Slide 45: Vote: final dividend 2012
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 45
Slide 46: Proposal to release the Executive Board from liability
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 46
Slide 47: Vote: release Executive Board from liability
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 47
Slide 48: Proposal to release the Supervisory Board from liability
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 48
Slide 49: Vote: release Supervisory Board from liability
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 49
Slide 50: Proposal to appoint the independent auditor
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 50
Slide 51: Appointment independent auditor for Annual Accounts 2013 and 2014-2016
Appointment independent auditor for Annual Accounts 2013 and 2014-2016 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 51
Slide 52: Vote: auditor for Annual Accounts 2013
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 52
Slide 53: Vote: auditor for Annual Accounts 2014-2016
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 53
Slide 54: Proposal to adopt amendments to the capital structure
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 54
Slide 55: Proposal to adopt amendments to the capital structure
Proposal to adopt amendments to the capital structure 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 co
Slide 56: Repayment of EUR 400 million of share premium
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 Development of shareholders’ equity (EUR billion) 24.7 (0.4) 24.3 2.1 Preferred sh
Slide 57: Amendment Articles of Association of Aegon N.V.
2. Amendment Articles of Association of Aegon N.V. 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
Slide 58: Amendment of the Voting Rights Agreement
3. Amendment of the Voting Rights Agreement 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
Slide 59: Amendment of the 1983 Merger Agreement
4. Amendment of the 1983 Merger Agreement 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 Vereniging Aegon voting rights Current situation # of shares Market value Ordinary course
Slide 60: Balanced outcome for all stakeholders
Balanced outcome for all stakeholders Simplified and improved capital structure Common Improved interest cover for Aegon - payment of preferred dividend will end shareholders Limited dilutive effect for common shareholders & No economic preferential status for a single shareholder bondholder
Slide 61: Vote: amendments to the capital structure
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 61
Slide 62: Amendments to the Supervisory Board Remuneration Policy
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 62
Slide 63: Supervisory Board remuneration 2013
Supervisory Board remuneration 2013 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
Slide 64: Vote: Supervisory Board Remuneration Policy
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 64
Slide 65: Proposal to appoint Mr. Darryl D. Button
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 65
Slide 66: Darryl D. Button
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 66
Slide 67: Vote: appoint Mr. Darryl D. Button
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 67
Slide 68: Proposal to reappoint Mr. Shemaya Levy
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 68
Slide 69: Shemaya Levy
Shemaya Levy 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
Slide 70: Vote: reappoint Mr. Shemaya Levy
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 70
Slide 71: Proposal to appoint Mrs. Dona D. Young
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 71
Slide 72: Dona D. Young
Dona D. Young 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 72
Slide 73: Vote: appoint Mrs. Dona D. Young
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 73
Slide 74: Authorize the Executive Board to issue common shares
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 74
Slide 75: Vote: authorize issuing common shares
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 75
Slide 76: Authorize restricting pre-emptive rights
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 76
Slide 77: Vote: restrict pre-emptive rights
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
Slide 78: Authorize issuing shares under incentive plans
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 78
Slide 79: Vote: issue shares under incentive plans
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 79
Slide 80: Authorize acquiring shares in the company
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 80
Slide 81: Vote: acquire shares in the company
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 81
Slide 82: Any other business
Agenda item 17 / Agendapunt 17 Any other business Wat verder ter tafel komt 82
Slide 83: Close of the meeting
Agenda item 18 / Agendapunt 18 Close of the meeting Sluiting van de vergadering 83
Slide 84: Thank you – Dank u wel
Thank you – Dank u wel 84
Slide 85: Please return your voting device and voting card
Please return your voting device and voting card before departing Wilt u voor uw vertrek uw stemkastje en stempas inleveren 85