Aegon Ltd. · EURONEXT:AGN
Aegon — Shareholder Meeting (May 2016)
90 slides from Aegon's shareholder meeting presentation, May 20, 2016
Slide 1: Welcome – Welkom
Welcome – Welkom Annual General Meeting of Shareholders The Hague, May 20, 2016 Algemene Vergadering van Aandeelhouders Helping people achieve a lifetime of financial security
Slide 2: Rob Routs
Welcome / Welkom 2 Rob Routs Chairman Supervisory Board --- Voorzitter Raad van Commissarissen
Slide 3: Welcome to the Annual General Meeting of Shareholders
Welcome / Welkom 3 Welcome to the Welkom op de jaarlijkse Annual General Meeting Algemene Vergadering of Shareholders van Aandeelhouders In order to hear a Voor het beluisteren van simultaneous translation een simultaanvertaling in English, please in het Nederlands choose channel 11 kiest u kanaal 1
Slide 4: Opening
Agenda item / Agendapunt 4 1 Opening
Slide 5: Presentation on the course of business in 2015
Agenda item / Agendapunt 5 2 Presentation on the course of business in 2015 2 Presentatie over de gang van zaken in 2015
Slide 6: Accelerate, connect, deliver
Accelerate, connect, deliver Alex Wynaendts The Hague, May 20, 2016 CEO & Chairman of the Executive Board Helping people achieve a lifetime of financial security
Slide 7: Today's story line
Accelerate, connect, deliver 7 Today’s story line • Achievements since 2010 - Transformed the profile of the company - Achieved a solid capital position • Our priorities going forward - Broaden relationships with our customers - Expand in asset management, administration and guidance & advice - Impr
Slide 8: Achievements since 2010
Achievements since 2010 8 Achievements since 2010
Slide 9: Transformed profile of the company
Achievements since 2010 9 Transformed profile of the company By executing on our strategy Transformation primarily the result of three important steps While growing fee business profitably Optimized value of • Generated average annual sales growth of 12% since 2010 back book • Invested in digitizati
Slide 10: Successfully grown our business
Achievements since 2010 10 Successfully grown our business Over the last 5 years Focusing on fee business main driver Revenue-generating investments Pension customer base behind attractive sales growth (EUR billions) 800 (EUR billions) 700 14 Average 12% annual growth 12 in sales 600 10 500 11 mln 8
Slide 11: Maintained solid capital position and returned capital
Achievements since 2010 11 Maintained solid capital position and returned capital Robust Solid group Solvency II ratio ~155% end of first quarter 2016 balance sheet Strong ratings S&P AA- financial strength rating Growing Operational free cash flow growth Doubled free cash flow since 2010 cash flows
Slide 12: Although we have not met all targets...
Achievements since 2010 12 Although we have not met all targets... 2015 Target Delivery Key drivers Return on equity > 10% • Impact of low rates • Significant adverse impact from Earnings growth of 7-10% − − Regulatory changes in the UK Portfolio changes in Spain and CEE Operational free cash fl
Slide 13: Significant progress on our strategic objectives
Achievements since 2010 13 …we have made significant progress on our strategic objectives • Increase in Net Promoter Score performance - Like-for-like NPS increased from 4.3 to 7.1 • Digital transformation - 95% of our businesses offer products and services online • Substantial increase in impact in
Slide 14: Our priorities going forward
Our priorities going forward 14 Our priorities going forward
Slide 15: Global trends impacting our business
Our priorities going forward 15 Global trends impacting our business Persistently low interest rates Shift from state & corporate benefits to individual responsibility for financial security Increased competition as a result of blurring boundaries in the financial services industry Reduced accessibi
Slide 16: Living up to our purpose
Our priorities going forward 16 Living up to our purpose To help people achieve a lifetime of financial security From working life …through guidance and …to trusted provider of advice… pension solutions
Slide 17: Developing new ways to connect with customers
Our priorities going forward 17 Developing new ways to connect with customers • Customer portals • Direct-to-consumer • Digital sales tools • Customer guidance and advice: combining technology and remote human interaction • Retirement outlook tools and self-service
Slide 18: Reducing expenses
Our priorities going forward 18 Reducing expenses By improving our business Strong expense track record 2010-2015 Additional cost savings in 2016-2018… Expenses up only 1% per year while growing sales by 8% per year* USD 150 million savings Reduced expense base of insurance activities by ~20% or EUR
Slide 19: Additions to Management Board reflect key strategic priorities
Our priorities going forward 19 Additions to Management Board reflect key strategic priorities Existing Chief Executive Chief Financial Chief Risk CEO CEO CEO CEO members Officer Officer Officer Americas NL UK CEE Alex Darryl Allegra Mark Marco Adrian Gábor Wynaendts Button van Hövell-Patrizi Mullin
Slide 20: Conclusions
Looking forward 20 Conclusions
Slide 21: Accelerate, connect, deliver
Looking forward 21 Accelerate, connect, deliver • Transforming our business - To improve delivery • Better connecting with customers - Building a life-long relationship with our customers • Increasing profitability - Return on equity of 10% by 2018 • Growing capital returns to shareholders - EUR 1.7
Slide 22: Presentation on the course of business in 2015
Agenda item / Agendapunt 22 2 Presentation on the course of business in 2015 2 Presentatie over de gang van zaken in 2015
Slide 23: 3.1 Annual Report 2015
Agenda item / Agendapunt 23 3.1 Annual Report 2015 3.1 Jaarverslag 2015
Slide 24: 2015 in review
2015 in review Darryl Button The Hague, May 20, 2016 CFO & Member of the Executive Board To help people achieve a lifetime of financial security
Slide 25: Today's story line
A challenging 2015 25 Today’s story line • Our performance in 2015 • Solid capital position • Capital return to shareholders • Achieve return on equity of 10% by 2018
Slide 26: How did we perform in 2015?
How did we perform in 2015? 26 How did we perform in 2015
Slide 27: How did we perform in 2015?
How did we perform in 2015? 27 How did we perform in 2015 Underlying Net income Operational Sales Revenue-generating earnings expenses investments € EUR 1.9 billion EUR 619 million EUR 3.7 billion EUR 10.7 billion EUR 707 billion up 4% down 48% up 13% up 24% up 27%
Slide 28: 2015: A challenging year
How did we perform in 2015? 28 2015: A challenging year From an earnings perspective Underlying earnings before tax Net income Return on equity Fee-based earnings (EUR million) (EUR million) (%) (% of UEBT) +4% -48% 1,982 1,968 8.6 1,939 1,672 7.8 7.5 1,865 6.7 1,186 48 39 857 33 33 619 2012 2013 20
Slide 29: Strong sales
How did we perform in 2015? 29 Strong sales Total sales* (EUR billion) Despite difficult market environment • Sales up 24%* in 2015 10.7 8.6 - Increase of 12% per year since 2010** 6.0 5.7 6.7 7.2 • Gross deposits up 39% in 2015: 2010 2011 2012 2013 2014 2015 - Higher pensions & mutual fund deposits
Slide 30: Continued strong cash flows
How did we perform in 2015? 30 Continued strong cash flows Support increased return to shareholders Operational free cash flows Increasing dividends** (Excl. market impacts and one-time items, EUR billion) (EUR per share; EUR million cash spent) 0.25 0.23 0.22 0.21 0.20* 1.6 465 503 1.5 1.2 1.3 1.2
Slide 31: First quarter 2016 results
How did we perform in the first quarter 31 of 2016? First quarter 2016 results
Slide 32: Q1 results impacted by volatile markets
First quarter 2016 results 32 Q1 results impacted by volatile markets Strong sales momentum continues • Underlying earnings up 7% • Solvency II ratio of ~155% • Continued strong fee-based sales Earnings Return on Equity Capital generation Solvency II Sales € 462m 7.3% € ~0.3bn ~155% € 3.6bn +7% 1.3p
Slide 33: Solid capital position
Solid capital position 33 Solid capital position
Slide 34: Aegon's solid capital position
Solid capital position 34 Aegon’s solid capital position Managing capital across various country units and frameworks Local regulatory framework Solvency II framework Asset Netherlands United Kingdom Other United States Management • Group Solvency II ratio is the combined solvency position of our bu
Slide 35: What determines our Solvency II ratio?
Solid capital position 35 What determines our Solvency II ratio? The importance of local ratios for upstreaming dividend Group Local capital management SII ratio Opportunity Accelerated growth and/or additional remittances to the group 170% Target Capital deployment and remittances according to capi
Slide 36: Solvency II ratio at ~155%
Solid capital position 36 Solvency II ratio at ~155% Ratio mainly impacted by adverse market impacts Capital return to Q4 2015 Capital generation Market impacts Other Q1 2016 shareholders ~160% +2% (6%) +5% (6%) ~155%* • Capital generation • Wider mortgage spread in NL • Pro forma UK • EUR 400 milli
Slide 37: Capital return to shareholders
Capital return to shareholders 37 Capital return to shareholders
Slide 38: Investments in new business
Capital return to shareholders 38 Investments in new business Normalized operational free cash flow 2016-2018 Important driver of future cash flows (EUR billion) 8.4 (4.2) • Capital generation in Americas & NL benefits from cost savings • Rising contribution from: - UK, Asset Management, CEE, Spain
Slide 39: Focus on capital return
Capital return to shareholders 39 Focus on capital return Capital deployment 2016-2018 In capital deployment strategy 2016-2018 (EUR billion) • EUR 1.7 billion for dividends 4.2 3.9 (0.9) 3.0 • EUR 1.3 billion for strategic priorities - Capital injections to support growth - Share buyback - Flexibil
Slide 40: Conclusions
Conclusions 40 Conclusions
Slide 41: Conclusions
Conclusions 41 Conclusions • Our performance in 2015 - A challenging year from earnings perspective - Continued strong sales momentum • Solid capital position - Supported by disciplined capital management policy • Capital return to shareholders - Growing dividends - EUR 400 million share buyback • A
Slide 42: 3.1 Annual Report 2015
Agenda item / Agendapunt 42 3.1 Annual Report 2015 3.1 Jaarverslag 2015
Slide 43: 3.2 Remuneration Report 2015
Agenda item / Agendapunt 43 3.2 Remuneration Report 2015 3.2 Remuneratierapport 2015
Slide 44: Ben Noteboom
Agenda item 3.2 / Agendapunt 3.2 44 Ben Noteboom Chairman Remuneration Committee --- Voorzitter Remuneration Committee
Slide 45: Aegon's Remuneration Policy
Agenda item 3.2 / Agendapunt 3.2 45 Aegon’s Remuneration Policy In general • Legislation and regulations impacting Aegon’s remuneration policies worldwide: - Maximum variable compensation in financial sector introduced - Limits on sign-on-, retention- and severance payments - Fiscal treatment of pen
Slide 46: No changes to Executive Board Remuneration Policy
Agenda item 3.2 / Agendapunt 3.2 46 No changes to Executive Board Remuneration Policy Fixed compensation (annual salary) + Variable compensation (max. 100% of annual salary) + Benefits (e.g. pension) Variable compensation: • Conditionally allocated after completion of performance year, depending on
Slide 47: Executive Board variable compensation 2015
Agenda item 3.2 / Agendapunt 3.2 47 Executive Board variable compensation 2015 Performance indicators and results Financial and non-financial Group targets (maximum 60%) Outcome 2015 Underlying earnings after tax (12%) Return on equity (9%) Market consistent value of new business (9%) 41.94% Operati
Slide 48: Executive Board variable compensation 2015
Agenda item 3.2 / Agendapunt 3.2 48 Executive Board variable compensation 2015 Conditional variable compensation allocated: • CEO: 79.94% of fixed compensation (2014: 79,13%, 2013: 98,33%) • CFO: 79.14% of fixed compensation (2014: 79,76%, 2013: 98,50%) • 40% of variable compensation to be paid / ve
Slide 49: Variable compensation Aegon outside Europe
Agenda item 3.2 / Agendapunt 3.2 49 Variable compensation Aegon outside Europe • Competitors in- & outside Europe not impacted by Dutch legislation on maximum variable compensation • In the USA and Asia in particular, the ratio between fixed and variable pay differs significantly from that in the Ne
Slide 50: Proposal under agenda item 10
Agenda item / Agendapunt 50 Proposal under agenda item 10 Variable compensation outside Europe Proposal to approve that the Company’s subsidiaries outside Europe may continue to pay variable compensation up to 200% of annual fixed salary to some of their employees • Concerns some 150 selected roles
Slide 51: 3.1 Annual Report 2015
Agenda item / Agendapunt 51 3.1 Annual Report 2015 3.1 Jaarverslag 2015
Slide 52: 3.3 Annual Accounts 2015
Agenda item / Agendapunt 52 3.3 Annual Accounts 2015 Proposal to adopt the Annual Accounts 2015 3.3 Jaarrekening 2015 Voorstel tot vaststelling van de jaarrekening 2015
Slide 53: Voting procedure / Stemprocedure
53 Voting procedure / Stemprocedure Prior to the voting Vóór de stemming • Insert card with chip facing you • Plaats kaart met chip naar voren • Name appears on display • Naam verschijnt in venster During the voting Tijdens de stemming • Voting options appear in display • Stemkeuzes verschijnen in v
Slide 54: 3.3 Annual Accounts 2015 – Vote
Agenda item / Agendapunt 54 Voting / stemming 3.3 Annual Accounts 2015 Proposal to adopt the Annual Accounts 2015 3.3 Jaarrekening 2015 Voorstel tot vaststelling van de jaarrekening 2015
Slide 55: Proposal to approve the final dividend 2015
Agenda item / Agendapunt 55 4 Proposal to approve the final dividend 2015 4 Voorstel tot goedkeuring van het slotdividend over het boekjaar 2015
Slide 56: Aegon's dividend policy
Agenda item 4 / Agendapunt 4 56 Aegon’s dividend policy • Cash flows upstreamed to the holding are available to execute our strategy, to fund operating expenses and to pay dividends to shareholders • Aegon aims to pay a sustainable dividend to shareholders, which can grow over time if performance of
Slide 57: Aegon's dividend proposal
Agenda item 4 / Agendapunt 4 57 Aegon’s dividend proposal • Proposed final dividend for 2015: Dividend EUR 0.13 per common share (EUR) 0.25 - Results in total dividend for 2015 of 0.23 +9% EUR 0.25 per common share 0.13 • To be paid in cash or stock • Value of stock dividend approximately equal to c
Slide 58: Proposal to approve the final dividend 2015
Agenda item / Agendapunt 58 4 Proposal to approve the final dividend 2015 4 Voorstel tot goedkeuring van het slotdividend over het boekjaar 2015
Slide 59: Vote: final dividend 2015
Agenda item / Agendapunt 59 Vote / Stemming 4 Proposal to approve the final dividend 2015 4 Voorstel tot goedkeuring van het slotdividend over het boekjaar 2015
Slide 60: Release Executive Board from liability
Agenda item / Agendapunt 60 5 Proposal to release members of the Executive Board from liability for their duties 5 Voorstel tot het verlenen van kwijting aan de leden van de Raad van Bestuur
Slide 61: Vote: release Executive Board from liability
Agenda item / Agendapunt 61 Vote / Stemming 5 Proposal to release members of the Executive Board from liability for their duties 5 Voorstel tot het verlenen van kwijting aan de leden van de Raad van Bestuur
Slide 62: Release Supervisory Board from liability
Agenda item / Agendapunt 62 6 Proposal to release members of the Supervisory Board from liability for their duties 6 Voorstel tot het verlenen van kwijting aan de leden van de Raad van Commissarissen
Slide 63: Vote: release Supervisory Board from liability
Agenda item / Agendapunt 63 Vote / Stemming 6 Proposal to release members of the Supervisory Board from liability for their duties 6 Voorstel tot het verlenen van kwijting aan de leden van de Raad van Commissarissen
Slide 64: Reappoint Mr. Robert Routs to the Supervisory Board
Agenda item / Agendapunt 64 7 Proposal to reappoint Mr. Robert Routs to the Supervisory Board 7 Voorstel tot herbenoeming van de heer Robert Routs als lid van de Raad van Commissarissen
Slide 65: Rob Routs
Agenda item 7 / Agenda punt 7 65 Rob Routs Age: 69 Nationality : Dutch Former occupation/vroegere functie: Executive Director Oil Products and Chemicals at Royal Dutch Shell Shares in the Company: None Membership of other Boards: Chairman of the Supervisory Board of Royal DSM N.V. Member of the Boar
Slide 66: Reappoint Mr. Robert Routs to the Supervisory Board
Agenda item / Agendapunt 66 7 Proposal to reappoint Mr. Robert Routs to the Supervisory Board 7 Voorstel tot herbenoeming van de heer Robert Routs als lid van de Raad van Commissarissen
Slide 67: Vote: reappoint Robert Routs
Agenda item / Agendapunt 67 Vote / Stemming 7 Proposal to reappoint Mr. Robert Routs to the Supervisory Board 7 Voorstel tot herbenoeming van de heer Robert Routs als lid van de Raad van Commissarissen
Slide 68: Reappoint Mr. Ben van der Veer to the Supervisory Board
Agenda item / Agendapunt 68 8 Proposal to reappoint Mr. Ben van der Veer to the Supervisory Board 8 Voorstel tot herbenoeming van de heer Ben van der Veer als lid van de Raad van Commissarissen
Slide 69: Ben van der Veer
Agenda item 8 / Agenda punt 8 69 Ben van der Veer Age: 65 Nationality : Dutch Former occupation/vroegere functie: Chairman of the Board of Management of KPMG N.V. Shares in the Company: 1450 common shares - December 31, 2015 Membership of other Boards: Member of the Supervisory Board of TomTom N.V.
Slide 70: Reappoint Mr. Ben van der Veer to the Supervisory Board
Agenda item / Agendapunt 70 8 Proposal to reappoint Mr. Ben van der Veer to the Supervisory Board 8 Voorstel tot herbenoeming van de heer Ben van der Veer als lid van de Raad van Commissarissen
Slide 71: Vote: reappoint Ben van der Veer
Agenda item / Agendapunt 71 Vote / Stemming 8 Proposal to reappoint Mr. Ben van der Veer to the Supervisory Board 8 Voorstel tot herbenoeming van de heer Ben van der Veer als lid van de Raad van Commissarissen
Slide 72: Reappoint Mr. Dirk Verbeek to the Supervisory Board
Agenda item / Agendapunt 72 9 Proposal to reappoint Mr. Dirk Verbeek to the Supervisory Board 9 Voorstel tot herbenoeming van de heer Dirk Verbeek als lid van de Raad van Commissarissen
Slide 73: Dirk Verbeek
Agenda item 9 / Agenda punt 9 73 Dirk Verbeek Age: 65 Nationality : Dutch Former occupation/vroegere functie: Executive Board member Aon Group Inc. Shares in the Company: 1011 common shares - December 31, 2015 Membership of other Boards: Member of the Supervisory Board of Aon Groep Nederland B.V. (n
Slide 74: Reappoint Mr. Dirk Verbeek to the Supervisory Board
Agenda item / Agendapunt 74 9 Proposal to reappoint Mr. Dirk Verbeek to the Supervisory Board 9 Voorstel tot herbenoeming van de heer Dirk Verbeek als lid van de Raad van Commissarissen
Slide 75: Vote: reappoint Dirk Verbeek
Agenda item / Agendapunt 75 Vote / Stemming 9 Proposal to reappoint Mr. Dirk Verbeek to the Supervisory Board 9 Voorstel tot herbenoeming van de heer Dirk Verbeek als lid van de Raad van Commissarissen
Slide 76: Approve variable compensation up to 200% outside Europe
Agenda item / Agendapunt 76 10 Proposal to approve the Company’s subsidiaries may pay variable compensation of up to 200% of the annual fixed compensation to their employees working outside Europe 10 Voorstel tot goedkeuring van de mogelijkheid voor dochtermaatschappijen van de Vennootschap om hun m
Slide 77: Vote: variable compensation up to 200%
Agenda item / Agendapunt 77 Vote / Stemming 10 Proposal to approve the Company’s subsidiaries may pay variable compensation of up to 200% of the annual fixed compensation to their employees working outside Europe 10 Voorstel tot goedkeuring van de mogelijkheid voor dochtermaatschappijen van de Venno
Slide 78: Cancel shares repurchased in EUR 400 million buyback
Agenda item / Agendapunt 78 11 Proposal to cancel all common shares repurchased during the EUR 400 million share buyback program 11 Voorstel tot intrekking van alle in het kader van de aandeleninkoop van EUR 400 miljoen ingekochte gewone aandelen
Slide 79: Vote: cancel repurchased shares
Agenda item / Agendapunt 79 Vote / Stemming 11 Proposal to cancel all common shares repurchased during the EUR 400 million share buyback program 11 Voorstel tot intrekking van alle in het kader van de aandeleninkoop van EUR 400 miljoen ingekochte gewone aandelen
Slide 80: Authorize Executive Board to issue common shares
Agenda item / Agendapunt 80 12 Proposal to authorize the Executive Board to issue common shares 12 Voorstel tot machtiging van de Raad van Bestuur tot uitgifte van gewone aandelen
Slide 81: Vote: authorize issuing common shares
Agenda item / Agendapunt 81 Vote / Stemming 12 Proposal to authorize the Executive Board to issue common shares 12 Voorstel tot machtiging van de Raad van Bestuur tot uitgifte van gewone aandelen
Slide 82: Authorize restricting pre-emptive rights
Agenda item / Agendapunt 82 13 Proposal to authorize the Executive Board to restrict or exclude pre-emptive rights upon issuing common shares 13 Voorstel tot machtiging van de Raad van Bestuur tot beperking of uitsluiting van voorkeursrechten bij de uitgifte van gewone aandelen
Slide 83: Vote: restrict pre-emptive rights
Agenda item / Agendapunt 83 Vote / Stemming 13 Proposal to authorize the Executive Board to restrict or exclude pre-emptive rights upon issuing common shares 13 Voorstel tot machtiging van de Raad van Bestuur tot beperking of uitsluiting van voorkeursrechten bij de uitgifte van gewone aandelen
Slide 84: Authorize issuing shares under incentive plans
Agenda item / Agendapunt 84 14 Proposal to authorize the Executive Board to issue common shares under incentive plans 14 Voorstel tot machtiging van de Raad van Bestuur tot uitgifte van gewone aandelen in het kader van incentiveplannen
Slide 85: Vote: issue shares under incentive plans
Agenda item / Agendapunt 85 Vote / Stemming 14 Proposal to authorize the Executive Board to issue common shares under incentive plans 14 Voorstel tot machtiging van de Raad van Bestuur tot uitgifte van gewone aandelen in het kader van incentiveplannen
Slide 86: Authorize acquiring shares in the Company
Agenda item / Agendapunt 86 15 Proposal to authorize the Executive Board to acquire shares in the Company 15 Voorstel tot machtiging van de Raad van Bestuur tot verkrijging van eigen aandelen door de Vennootschap
Slide 87: Vote: acquire shares in the Company
Agenda item / Agendapunt 87 Vote / Stemming 15 Proposal to authorize the Executive Board to acquire shares in the Company 15 Voorstel tot machtiging van de Raad van Bestuur tot verkrijging van eigen aandelen door de Vennootschap
Slide 88: Any other business
Agenda item / Agendapunt 88 16 Any other business 16 Wat verder ter tafel komt
Slide 89: Close of the meeting
Agenda item / Agendapunt 89 17 Close of the meeting 17 Sluiting van de vergadering
Slide 90: Thank you – Dank u wel
Close of the meeting / Sluiting van de 90 vergadering Thank you – Dank u wel