Aegon Ltd. · EURONEXT:AGN
Aegon — Shareholder Meeting (April 2008)
10 slides from Aegon's shareholder meeting presentation, Apr 23, 2008
Slide 1: Growing the Value
Growing the Value Don Shepard, Chairman of the Executive Board Jos Streppel, Chief Financial Officer AEGON N.V. Annual General Meeting of Shareholders April 23, 2008
Slide 2: AEGON USA investment overview
AEGON USA investment overview AEGON USA bond portfolio Key investment themes quality profile Minimal credit impairments December 31, 2007: USD 95 billion No impairments on subprime and other mortgage backed BB B Below B securities, although market 3.6% 2.1% 0.4% values declined as the real estat
Slide 3: AEGON USA investment overview
AEGON USA investment overview AEGON USA bond portfolio Key investment themes quality profile Minimal credit impairments December 31, 2007: USD 95 billion No impairments on subprime and other mortgage backed BB B Below B securities, although market 3.6% 2.1% 0.4% values declined as the real estat
Slide 4: AEGON upgraded its portfolio
AEGON upgraded its portfolio Rating migration subprime In USD billion 5 4 3 69.8% 74% 72.9% 70.4% 65.1% 2 40% 1 27% 0 2001 2002 2003 2004 2005 2006 2007 AAA AA A BBB BIG Book values by internal ratings - 2007 data and is based on hierarchy ratings 6
Slide 5: Credit derivatives exposure: synthetic CDOs
Credit derivatives exposure: synthetic CDOs AEGON USA sold protection on very senior tranches of the CDX (index of 125 investment grade corporate bonds) Not subprime or mortgage-related Nominal amount outstanding: EUR 4.5 billion • Virtually all super senior AAA Accounting for all credit der
Slide 6: Solid year
Solid year No material impairments reflecting high quality of investment portfolio Net operating earnings 4% down and up 1% at constant currency Solid business progress reflected in underlying earnings before tax, up 9% and 14% at constant currency Net income down in 2007 mainly as a result
Slide 7: Sales increases drive VNB growth in 2007
Sales increases drive VNB growth in 2007 New life sales up 7% Deposits up 14% Value of new business on track to meet increased target of EUR 1.25 billion by 2010 New life sales (APE) Total deposits Value of new business (EUR million) (EUR million) (EUR million) 3,051 3,274 39,165 44,528 775 92
Slide 8: Continued growth of revenue generating investments
Continued growth of revenue generating investments Revenue generating investments (EUR million) CAGR 10% at constant currency 8% 400,000 in EUR 350,000 300,000 250,000 YE04 YE05 YE06 YE07 In EUR Constant currency (EUR/USD conversion rate YE04: 1.3621; YE07: 1.4721) 10
Slide 9: 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 10: 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 18,605 (1,445) (1