Aegon Ltd. · EURONEXT:AGN
Aegon — Q4 2007 Earnings Presentation
14 slides from Aegon's earnings presentation, Mar 6, 2008
Slide 1: Fourth Quarter 2007 Results
Fourth Quarter 2007 Results Don Shepard, CEO Press conference March 6, 2008
Slide 2: Cautionary note regarding forward-looking statements
Cautionary note regarding forward-looking statements Cautionary note regarding forward-looking statements The statements contained in this presentation that are not historical facts are forward-looking statements as defined in the US Private Securities Litigation Reform Act of 1995. The following ar
Slide 3: Strategic initiatives in 2007
Strategic initiatives in 2007 Distribution US - Merrill Lynch Taiwan - JV with Taishin UK - Barclays China - IFMC Spain - Caja Cantabria Pensions & Retirement Hungary – add-on acquisition of mandatory and voluntary pension fund International expansion Romania – start of mandatory pensi
Slide 4: High quality portfolio weathers stressed credit market
High quality portfolio weathers stressed credit market No impairments on subprime Subprime portfolio EUR 2.9 billion Below AA No material impairments on AA ~1% non-subprime investments 16% (EUR 17 million through P&L) AA+ EUR 190 million negative pre-tax 13% AAA revaluations of subprime in Q4
Slide 5: Solid quarter masked by one-offs in comparable period
Solid quarter masked by one-offs in comparable period Net operating earnings declined due to currency and significant one-time tax benefits in 2006 Solid business progress reflected in underlying earnings before tax, up 9% Net income down in 2007 mainly as a result of lower non-operating earni
Slide 6: Sales increases drive VNB growth in 2007
Sales increases drive VNB growth in 2007 New life sales declined 8% in Q4 due to lower sales in the UK and Spain and a weaker USD and GBP – up 7% for 2007 Deposits down in Q4 due to lower sales of institutional guaranteed products as deposits in Q4 2006 were extraordinarily high – up 14% for 200
Slide 7: Continued growth of revenue generating investments
Continued growth of revenue generating investments Revenue generating investments (EUR million) 11% at constant currency 450,000 2% in EUR 400,000 350,000 300,000 250,000 YE06 YE07 In EUR Constant currency (EUR/USD conversion rate YE06: 1.3170; YE07: 1.4721) 7
Slide 8: Full year dividend increased by 13%
Full year dividend increased by 13% Full year dividend increased by 13% to EUR 0.62 Increased dividend reflects strong cash flow and capital position Final dividend increased by 3% reflecting a more moderate growth rate after rebasing dividend over the past year Dividend (EUR cents) 0.62 0.55
Slide 9: Shareholders' equity development in 2007
Shareholders’ equity development in 2007 Shareholders’ equity 72% of overall capital base comfortably above target of 70% Shareholders’ equity impacted by return of capital, revaluation of assets and currency movements EUR 1.9 billion returned 2,551 (2,164) to common shareholders (1,445) 18,605 (1
Slide 10: Profitable growth
Profitable growth Dividend Value of new business (EUR) (EUR million) 0.62 927 0.55 775 0.42 0.45 0.40 550 489 331 2003 2004 2005 2006 2007 2003 2004 2005 2006 2007 Internal Rate of Return 18.4% 14.5% 12.5% 12.4% 11.3% 2003 2004 2005 2006 2007 10
Slide 11: Successful expansion strategy
Successful expansion strategy 11
Slide 12: Conclusions
Conclusions No material impairments in Q4 2007 - high quality investment portfolio Solid fourth quarter masked by one-offs in Q4 2006 Strong underlying growth in 2007 Good sales and deposits growth in 2007 Full year dividend increased 13% Value of new business growth on track 12
Slide 13: Q&A
Q&A
Slide 14: THANK YOU!
THANK YOU! For questions please contact AEGON Group Corporate Communications P.O. Box 85 2501 CB The Hague The Netherlands P: +31 70 344 8344 F: +31 70 344 8485 E: [email protected] 14