The Hague, May 20, 2015 Annual General Meeting of Shareholders Aegon N.V. Jaarlijkse Algemene Vergadering van Aandeelhouders Aegon N.V.
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 into English , please in het Nederlands choose channel 11 kiest u kanaal 10 2
Picture Chairman Voorzitter Supervisory Raad van Board Commissarissen Rob Routs 3
Agenda item 1 / Agendapunt 1 Opening 4
Agenda item 2 / Agendapunt 2 Presentation on the Presentatie over de course of business gang van zaken in 2014 in 2014 5
Strong foundations for growth The Hague – May 20, 2015 Alex Wynaendts CEO & Chairman of the Executive Board
Aegon’s purpose is to help people take responsibility for their financial future 7 7
Our products and services have never been more needed Trends Our expertise Changing Changing capital demographics requirements New Increased digital At & after regulation technologies Protection Accumulation retirement Low interest rates We support people throughout their working lives and into retirement 8
Global aging and changing demographics Aegon Retirement Readiness Index (ARRI) Hungary: 4.9 Spain: 5.0 United States India 6.2 7.0 Poland: 5.1 Netherlands 7 5.7 Turkey: 5.4 Sweden: 5.4 Japan France: 5.4 4.6 United Kingdom Canada: 6.0 6.0 Germany: 6.1 China: 6.2 Brazil: 6.8 Global Retirement Readiness Score 5.8 9
Growing importance of technology 10
Persistently low interest rates US NL 10-year government bond yields 7% 6% 5% 4% 3% 2% 1% 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 11
Regulatory changes with a significant impact on our industry Regulators seeking to strengthen consumer protection New laws on tax and data privacy Unprecedented reforms in some of our markets End of commissions to brokers in the UK and the Netherlands 12
New capital requirements to enhance risk management and governance Implementation of Solvency II in 2016 Aimed at enhancing consumer protection Capital requirements linked to risks insurers take on Regulators will set the bar high 13
A clear framework to address global trends and developing customers’ needs Help people take responsibility for their financial future Purpose Working Bringing Exceeding Company values together Clarity Expectations Strategic Objectives Ambition Leader in all of our chosen markets 14
Making the right choices Optimize our portfolio Divestments Expanding distribution with strong local partners Canada Santander Totta (Portugal) Partnership with La Mondiale La Banque Postale (France) (France) Joint venture with Caja Badajoz BANCOOB (Brazil) (Spain) 15
Towards a more efficient and responsive company Pursue operational excellence Adjusted product offerings to Improved efficiency OpEx / (OpEx + UEBT) continued low interest rates 63% 63% Launched new products to meet customers’ needs 59% 59% 58% Established global IT framework Cost savings create room to invest in Aegon’s businesses 2010 2011 2012 2013 2014* 16 * Adjusted for model and assumption updates. Without these adjustments, our cost: earnings ratio for 2014 would have totaled 61%.
Becoming a more customer-centric company Customer loyalty Online offerings in nearly all Aegon’s Enhancing services of customer markets service centers Through launch of specialized ► Further enhancement of online software platforms & tools Customer loyalty measured with Launched Venture Fund to respond Net Promoter Score quicker to changing markets Aiming for top quartile in all our ► chosen markets 17
Empowered employees to help people take responsibility for their financial future Staff performance metrics Empower our employees Engagement 73 66 Broadening talent mix 73 69 67 63 Attracting talented people from a range of ► different industries 2011 2013 2014 2015 Talent Review Process Enablement 71 Succession planning and talent ► identification well established 67 74 70 Promoting workforce diversity 67 64 Joined Workplace Pride ► 2011 2013 2014 2015 High performing norm 2015 Financial services norm 2015 18
Organizational changes to take advantage of opportunities Servicing US customers through a single investment & retirement division Actively serving 3,300 I&R employees with a national footprint 25,000+ plan sponsors Enhancing Introducing new Better connecting distribution investment solutions with our customers New deposits of USD 42 billion 5.4 million customers in 2014 and revenue generating investments of USD 296 billion 19 19
Integrated solution to and through retirement in the UK At-retirement Non-advised Workplace savings Capabilities for ‘Gated’ solutions for Self service adviser market employees Single investment & trading platform – offering a compelling solution to advisers, employers and their employees 20
Leadership positions in the Netherlands offer strong foundations for growth #1 #2 #1 Pensions Pension PPI provider with insurer* administrator 0.6 billion euro in Assets under Management** In millions of customers 4.4 2.8 Aegon Peer 1 2.5 2.3 Aegon PPI 1.9 Peer 2 Peer 3 Cappital Peer 4 Peer 5 Others Pension Insurer Pension Aegon Pension fund fund fund * Gross written premiums pensions in 2013 (Source: DNB) ** Per January 1, 2015. Premium Pension Institution (PPI) is a specific type of defined contribution contract 21
New Markets’ strategy driving continued growth Focus on protection Leadership in risk/rider products in key CEE markets Asia ► Strong growth in high-net-worth segments in Hong Kong and Singapore ► Central & Expanded distribution Eastern Europe Newly developed professional advisory channel in Spain ► Continued growth of tied agent networks in CEE ► Latin America Direct propositions Spain New online propositions in Asia, CEE, Spain and Brazil ► Leader in Indian online term life insurance market ► Strong growth of assets under management Asset Management Expanding our third-party business 22
Our strategy is delivering results Expanding digital Enhancing Getting closer to our customers capabilities distribution Customer focused Solid underlying earnings Continued strong Very strong before tax in 2014 sales in 2014 ratings Strong performance AA- EUR 1.9 billion EUR 8.6 billion 23
Sustainable dividend growth Proposed final 2014 dividend of EUR 0.12 per share; total 2014 dividend of EUR 0.23 per share Continue to neutralize stock dividends to avoid dilution Future dividend growth dependent on strong capital position and cash flows Increasing dividends (EUR per share) 0.23 0.22 0.21 0.20* 2011 2012 2013 2014 24 * Final 2011 dividend of EUR 0.10 per share annualized for comparative purposes
Creating value for all our stakeholders Protection Investors Employees Customers Benefits Trust Capital Talent € Profits Society 25
Agenda item 2 / Agendapunt 2 Presentation on the Presentatie over de course of business gang van zaken in 2014 in 2014 26
Agenda item 3.1 / Agendapunt 3.1 Annual Report Jaarverslag 2014 2014 27
Creating and sharing value in 2014 The Hague – May 20, 2015 Darryl Button CFO & Member of the Executive Board
Aegon performed strongly in 2014 Key figures Underlying Net income Operational Sales Revenue-generating earnings expenses investments - 5% +38% +1% + 20% +17% EUR 1.9 billion EUR 1.2 billion EUR 3.3 billion EUR 8.6 billion EUR 558 billion 29
Strong underlying trends masked by assumption changes and model updates Underlying earnings before tax Net income (EUR million) (EUR million) 1,672 1,982 1,968 1,865 1,775 1,186 936 857 2011 2012 2013 2014 2011 2012 2013 2014 Underlying earnings impacted by assumption changes and model updates 30 Note: 2011 as reported
Total sales growth of 20% driven by continued strong deposits Strong gross deposits mainly driven by US pensions and variable annuities Stronger universal life production in US and Asia; higher pension production in the Netherlands Accident & health and general insurance sales exceed EUR 1 billion for the first time New life sales A&H and general insurance Gross & net deposits (EUR billion) (EUR billion) (EUR billion) +25% +7% +26% 55 2.0 1.0 1.9 44 0.8 9 8 FY 2013 FY 2014 FY 2013 FY 2014 FY 2013 FY 2014 31 Note: Total sales consists of new life sales plus 1/10 th of gross deposits plus new premiums for accident & health and general insurance
Continued strong capital position and cash flows Operational free cash flows Return on equity (Excl. market impacts and one-time items, EUR bln) (%) 1.6 8.6% 8.6% 1.3 7.8% 1.2 1.2 6.7% 2011 2012 2013 2014 2011 2012 2013 2014 Excess capital at the holding Solvency ratio (EUR billion) (Insurance Group Directive, %) 228% 2.2 2.0 212% 208% 195% 1.2 1.2 2011 2012 2013 2014 2011 2012 2013 2014 32 Note: 2011 and 2012 return on equity as reported
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