Aegon Ltd. · EURONEXT:AGN
Aegon — Shareholder Meeting (May 2023)
58 slides from Aegon's shareholder meeting presentation, May 25, 2023
Slide 1: Welcome
Welcome Annual General Meeting of Shareholders The Hague, May 25, 2023 1 Helping people live their best lives
Slide 2: William L. Connelly
William L. Connelly Chairman of the Supervisory Board Helping people live their best lives 2
Slide 3: Welcome to the 2023 Annual General Meeting of Shareholders
Welcome to the 2023 Annual General Meeting of Shareholders Helping people live their best lives 3
Slide 4: Opening
Agenda item 1 Opening 4
Slide 5: Annual Report and Annual Accounts 2022
Agenda item 2 Annual Report and Annual Accounts 2022 5
Slide 6: 2.1 Business Overview 2022
Agenda item 2.1 Business Overview 2022 6
Slide 7: Lard Friese
Lard Friese CEO Helping people live their best lives 7
Slide 8: Progress in a pivotal year for Aegon
Progress in a pivotal year for Aegon 8
Slide 9: Strong delivery since 2020 Capital Markets Day
Strong delivery since 2020 Capital Markets Day Clear strategic focus, building on our Established a more focused portfolio of businesses strengths and a leader in the Dutch market Value- creating capital Created value by reallocating capital from Financial allocation Helping people live Assets to St
Slide 10: Creating new ways of working at Aegon
Creating new ways of working at Aegon Operational improvement plan (Number of initiatives) 1,371 172 Initiatives in progress 1,140 Growth initiatives 278 executed Expense initiatives 921 executed CMD 2020 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 2021 2022 10
Slide 11: Accelerating strategy through transaction with a.s.r.
Accelerating strategy through transaction with a.s.r. • Compelling strategic and financial Pro forma market shares1 rationale Defined Contribution pensions Defined benefit pensions 32% 68% 32% 68% • Creating number two Dutch insurer with diversified portfolio of Disability insurance P&C insurance bu
Slide 12: Gaining commercial momentum
Gaining commercial momentum Challenging environment for investment solutions Continuing commercial momentum in US Strategic Assets Growing UK platform business Spain & Portugal, China and Brazil delivering profitable growth Challenging market environment for Aegon Asset Management 12
Slide 13: Maximizing value of Financial Assets
Maximizing value of Financial Assets Reduced interest rate risk in US Freed up capital through reinsurance transaction between TLB and Transamerica Effective dynamic hedging of variable annuities (VA) Active risk Improved modelling in the and capital Netherlands to reduce management capital volatili
Slide 14: Our progress since 2020
Our progress since 2020 Target CMD 2020 Delivery Progress Addressable expense savings from expense initiatives vs. 2019 EUR 400 million 2023 EUR 366 million 2022 ✓ Free cash flow EUR 1.4 – 1.6 billion 2021 to 2023 cumulative EUR 1.5 billion 2021 and 2022 cumulative ✓ Gross financial leverage EUR 5.0
Slide 15: Maintaining a strong balance sheet
Maintaining a strong balance sheet Significant financial flexibility • Capital ratios of main units remain above respective operating levels • Cash Capital at Holding in upper half of operating range Conservative fixed income portfolio • Well-diversified bond portfolio with defensive positioning in
Slide 16: Delivering on our sustainability approach
Delivering on our sustainability approach Target Performance in 2022 25% reduction in weighted average carbon intensity of 20% corporate fixed income and listed equity general account assets by 2025 reduction against 2019 ✓ 25% reduction in absolute operational carbon emissions by 59% 2025 against 2
Slide 17: Further enhancing our sustainability approach
Further enhancing our sustainability approach New targets for environmental protection • Invest USD 2.5 billion in activities to help mitigate climate change or adapt to the associated impacts by 2025 • Engage with at least the top 20 corporate carbon emitters in the portfolio by 2025 Building on ou
Slide 18: Concluding remarks
Concluding remarks Creating new ways of working at Aegon Accelerating strategy through transaction with a.s.r. Delivering on our financial commitments Responsibility to help create a healthy, equitable world Capital Markets Day – June 22, 2023 18
Slide 19: 2.1 Business Overview 2022
Agenda item 2.1 Business Overview 2022 19
Slide 20: 2.2 Remuneration Report 2022
Agenda item 2.2 Remuneration Report 2022 Advisory vote 20
Slide 21: Ben Noteboom
Ben Noteboom Chairman of the Remuneration Committee Helping people live their best lives 21
Slide 22: 2022 Remuneration Report
2022 Remuneration Report Published as part of the 2022 Integrated Annual Report • Report content • Business and remuneration highlights • Remuneration at Aegon in general • Supervisory Board Remuneration Report • Executive Board Remuneration Report 22
Slide 23: Supervisory Board remuneration 2022
Supervisory Board remuneration 2022 Remuneration received in 2022 In EUR thousand Base fee1 Attendance fee Benefits2 Total 2021 Total Connelly 100 88 29 217 162 Ellman 56 60 17 132 102 Fawcett (as of May 31, 2022) 32 32 13 77 - McGarry 56 76 23 154 61 Noteboom 61 66 11 138 107 Ramsay 64 82 37 183 12
Slide 24: Executive Board remuneration 2022
Executive Board remuneration 2022 Remuneration in relation to 2022 In EUR thousand Fixed Variable1 Pension Benefits Total 2021 Total Friese 1,559 1,368 621 77 3,625 3,515 (2023: 1,637) Rider 988 837 395 66 2,286 2,306 (2023: 1,037) Total 2,547 2,205 1,016 143 5,912 5,821 1 Awarded in relation to 202
Slide 25: Executive Board variable compensation in 2022
Executive Board variable compensation in 2022 2022 Aegon Group results for calculation Executive Board variable compensation Aegon performance indicators Weight Target Result In % Free cash flows (2021-2022) 20% 1,000 1,509 150% Relative total shareholder return (2020-2022) 10% #5 #7 67% Operating r
Slide 26: Executive Board variable compensation 2022 (cont’d)
Executive Board variable compensation 2022 (cont’d) 2022 Variable compensation calculation Friese Rider Result Weight Score Weight Score Aegon performance (see previous slide) 113% 70% 85% 70% 85% Strategic Roadmap development 100% 10% 100% 5% 100% Execution of capital initiatives in line with S
Slide 27: 2.2 Remuneration Report 2022
Agenda item 2.2 Remuneration Report 2022 Advisory vote 27
Slide 28: How to vote
How to vote Click here to vote • Please submit your vote by clicking on “for”, “against”, or “withheld” • You can change your vote until the voting is closed • A vote confirmation will be displayed 28
Slide 29: 2.3 Aegon’s dividend policy
Agenda item 2.3 Aegon’s dividend policy 29
Slide 30: Update of Aegon’s dividend policy
Update of Aegon’s dividend policy Intention to pay a cash-only dividend going forward • Aegon intends to move to a cash-only dividend as of the final dividend of 2022, and to this end has updated its dividend policy Remainder of dividend policy is unchanged • Aegon aims to pay out a sustainable divi
Slide 31: 2.3 Aegon’s dividend policy
Agenda item 2.3 Aegon’s dividend policy 31
Slide 32: 2.4 Adoption of the Annual Accounts 2022
Agenda item 2.4 Adoption of the Annual Accounts 2022 Voting item 32
Slide 33: Rogier van Adrichem
Rogier van Adrichem PricewaterhouseCoopers Accountants N.V. May 25, 2023
Slide 34: 2.4 Adoption of the Annual Accounts 2022
Agenda item 2.4 Adoption of the Annual Accounts 2022 Voting item 34
Slide 35: 2.5 Approval of the final dividend 2022
Agenda item 2.5 Approval of the final dividend 2022 Voting item 35
Slide 36: Dividend
Dividend • It is proposed that the final dividend for 2022 will amount to EUR 0.12 per common share and EUR 0.003 per common share B - If approved, and in combination with the interim dividend of EUR 0.11 per share paid over the first half of 2022, Aegon’s total dividend over 2022 will amount to EUR
Slide 37: 2.5 Approval of the final dividend 2022
Agenda item 2.5 Approval of the final dividend 2022 Voting item 37
Slide 38: Release from liability
Agenda item 3 Release from liability 38
Slide 39: 3.1 Release from liability for Executive Board members
Agenda item 3.1 Release from liability for the members of the Voting item Executive Board for their duties performed during 2022 39
Slide 40: 3.2 Release from liability for Supervisory Board members
Agenda item 3.2 Release from liability for the members of the Voting item Supervisory Board for their duties performed during 2022 40
Slide 41: Release from liability
Agenda item 3 Release from liability 41
Slide 42: Appointment independent auditor Aegon N.V.
Agenda item 4 Appointment independent auditor Aegon N.V. 42
Slide 43: 4.1 Proposal to appoint Ernst & Young Accountants LLP
Agenda item 4.1 Proposal to appoint Voting item Ernst & Young Accountants LLP as independent auditor for the Annual Accounts of 2024 through 2028 43
Slide 44: Appointment independent auditor Aegon N.V.
Agenda item 4 Appointment independent auditor Aegon N.V. 44
Slide 45: Composition of the Supervisory Board
Agenda item 5 Composition of the Supervisory Board 45
Slide 46: 5.1 Reappointment of Ms. Dona Young
Agenda item 5.1 Reappointment of Ms. Dona Young Voting item as member of the Supervisory Board 46
Slide 47: Ms. Dona D. Young
Ms. Dona D. Young • Age: 69 • Nationality: American • Main occupation - Non-Executive Director • Main former occupation - Chairman, President, and CEO of the Phoenix Companies • Membership of other Boards - Member and Chairman of the Board of Directors of Foot Locker, Inc. - Independent member of th
Slide 48: Composition of the Supervisory Board
Agenda item 5 Composition of the Supervisory Board 48
Slide 49: Cancellation, issuance, and acquisition of shares
Agenda item 6 Cancellation, issuance, and acquisition of shares 49
Slide 50: 6.1 Proposal to cancel common shares and common shares B
Agenda item 6.1 Proposal to cancel common shares and Voting item common shares B 50
Slide 51: 6.2 Authorization to issue common shares
Agenda item 6.2 Authorization of the Executive Board to issue Voting item common shares with or without pre-emptive rights 51
Slide 52: 6.3 Authorization to issue shares for a rights issue
Agenda item 6.3 Authorization of the Executive Board to issue Voting item shares in connection with a rights issue 52
Slide 53: 6.4 Authorization to acquire shares in the Company
Agenda item 6.4 Authorization of the Executive Board to Voting item acquire shares in the Company 53
Slide 54: Cancellation, issuance, and acquisition of shares
Agenda item 6 Cancellation, issuance, and acquisition of shares 54
Slide 55: Voting results
Voting results 55
Slide 56: Any other business
Agenda item 7 Any other business 56
Slide 57: Closing
Agenda item 8 Closing 57
Slide 58: The live presentation has concluded
The live presentation of the 2023 Annual General Meeting of Shareholders has concluded. Helping people live their best lives 58