Local knowledge. Global power. Second quarter 2008 results Alex Wynaendts, CEO Jos Streppel, CFO Press conference Amsterdam, August 7, 2008
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 are words that identify such forward-looking statements: believe, estimate, target, intend, may, expect, anticipate, predict, project, counting on, plan, continue, want, forecast, should, would, is confident, will, and similar expressions as they relate to our company. These statements are not guarantees of future performance and involve risks, uncertainties and assumptions that are difficult to predict. We undertake no obligation to publicly update or revise any forward-looking statements. Readers are cautioned not to place undue reliance on these forward-looking statements, which merely reflect company expectations at the time of writing. Actual results may differ materially from expectations conveyed in forward- looking statements due to changes caused by various risks and uncertainties. Such risks and uncertainties include but are not limited to the following: � Changes in general economic conditions, particularly in the United States, the Netherlands and the United Kingdom; � Changes in the performance of financial markets, including emerging markets, such as with regard to: - The frequency and severity of defaults by issuers in our fixed income investment portfolios; and - The effects of corporate bankruptcies and/or accounting restatements on the financial markets and the resulting decline in the value of equity and debt securities we hold; � The frequency and severity of insured loss events; � Changes affecting mortality, morbidity and other factors that may impact the profitability of our insurance products; � Changes affecting interest rate levels and continuing low or rapidly changing interest rate levels; � Changes affecting currency exchange rates, in particular the EUR/USD and EUR/GBP exchange rates; � Increasing levels of competition in the United States, the Netherlands, the United Kingdom and emerging markets; � Changes in laws and regulations, particularly those affecting our operations, the products we sell, and the attractiveness of certain products to our consumers; � Regulatory changes relating to the insurance industry in the jurisdictions in which we operate; � Acts of God, acts of terrorism, acts of war and pandemics; � Changes in the policies of central banks and/or governments; � Litigation or regulatory action that could require us to pay significant damages or change the way we do business; � Customer responsiveness to both new products and distribution channels; � Competitive, legal, regulatory, or tax changes that affect the distribution cost of or demand for our products; � Our failure to achieve anticipated levels of earnings or operational efficiencies as well as other cost saving initiatives; and � The impact our adoption of the International Financial Reporting Standards may have on our reported financial results and financial condition. Cautionary note regarding Regulation G (non-GAAP measure) This presentation includes certain non-GAAP financial measures: net operating earnings, operating earnings before tax, (net) underlying earnings, value of new business and embedded value. Value of new business and embedded value are not based on IFRS, which are used to prepare and report AEGON’s financial statements and should not be viewed as a substitute for IFRS financial measures. AEGON believes the non-GAAP measures shown herein, together with GAAP information, provides a meaningful measure for the investment community to evaluate AEGON’s business relative to the businesses of our peers. Local knowledge. Global power. 2
Highlights Q2 2008 o Strong capital position with excess capital of over EUR 0.8 billion o Solid underlying earnings – down by 2% * o Continued growth of life sales and deposits, VNB up 2% * o Interim dividend of EUR 0.30 per share o New strategy announced at June 2, 2008 o Three strategic priorities o Reallocate capital towards businesses with higher growth and return prospects o Improve growth and returns from existing businesses o Manage AEGON as an international Group o Three ambitious targets o Grow value of new business to EUR 1.25 billion by 2010 o Earnings growth of at least 10% per annum to 2012 * o Return on equity in excess of 15% by 2012 * at constant currency Local knowledge. Global power. 3
Execution of strategy o Securitization of unit linked business in the UK released EUR 315 million, adding to core capital and enhancing financial flexibility o AEGON #2 pension provider in Hungary and #5 in Poland after mergers of acquired pension funds o Acquisition of Turkish life & pensions company completed o JV with Spanish savings bank Cantabria commenced operations o Asset management JV in China with EUR 3 billion AuM Local knowledge. Global power. 4
Solid underlying earnings o Underlying earnings before tax down 2% * o Americas earnings increased 2% * as result of higher investment spreads o UK earnings declined due to lower fee income and investments in the business Underlying earnings before tax (€ million) 679 (63) 1 (23) (7) 9 596 2% 1% (21)% (22)% (10)% (2)% Underlying earnings development at constant currency Q2 07 Americas The United Other countries Holding and Q2 08 Netherlands Kingdom other * at constant currency Local knowledge. Global power. 5
Net income affected by financial markets o Normal bond trading in Americas and lower gains on investments in the Netherlands lead to losses on investments o Increased impairment charges on US credit and equity investments Net income development (€ million) 655 (83) (1) (136) (94) (30) (35) 276 Q2 07 Change in Change in fair Change in Change in Change in other Change in Q2 08 underlying value items gain/(losses) on impairment income/(charges) income tax earnings before performance investments charges tax Local knowledge. Global power. 6
Continued profitable growth of new life sales o Total new life sales up 3% * o Positive momentum in sales of high net worth products in Americas o Sales growth across most lines of business in UK o Strong sales in the Netherlands mainly driven by group pensions Retail life sales New life sales New life sales Americas United Kingdom The Netherlands (USD million) (GBP million) (EUR million) +10% +5% +28% 175 184 308 339 53 68 Q2 07 Q2 08 Q2 07 Q2 08 Q2 07 Q2 08 * at constant currency Local knowledge. Global power. 7
Strong growth in retail deposits o Total net deposits of EUR 971 million o VA deposits in the Americas increased by 5% o FA deposits in the Americas experience best sales quarter since 2003 o Deposits in Other countries triple Variable annuities Fixed annuities Total gross retail deposits Americas Americas Other countries (USD million) (USD million) (EUR million) x 6 +5% x 3 997 1,047 211 1,349 182 540 Q2 07 Q2 08 Q2 07 Q2 08 Q2 07 Q2 08 Local knowledge. Global power. 8
Shareholders’ equity development o Shareholders’ equity excluding revaluation reserves is 74% of total capital base – well above target o Decline in revaluation reserves driven by higher interest rates Shareholders’ equity development (EUR million) 276 12,597 (933) (45) 118 (112) (290) (2) 12 11,621 31 Mar 2008 Net income Change in Movements Coupons on Dividend Dividend Repurchased Other 30 Jun 2008 revaluation in foreign perpetuals preferred common and sold own changes reserves currency (net of tax) shares shares shares translation reserves Local knowledge. Global power. 9
Capital position remains strong o Continued financial strength o Operating units are capitalized at the higher of: Regulatory requirements, – S&P requirements at AA level and – Economic requirements under AEGON’s economic framework – (after full implementation by 2009) o Financial flexibility of EUR 1.8 billion including excess capital of over EUR 0.8 billion o Cash flows remain strong Local knowledge. Global power. 10
Improved financial flexibility Financial flexibility (EUR billion) o Excess capital over 1.8 EUR 0.8 billion 1.6 o Leverage capital increased o Recent ViF securitization and possibility of future securitizations are not yet included in financial flexibility at June 30, 2008 31 Mar 08 30 Jun 08 � Additional leverage capital � Excess capital in country units: available capital -/- required capital Local knowledge. Global power. 11
Interim dividend of EUR 0.30 per share o Dividend policy is to maintain attractive dividend, based on capital and cash flow position o Dividend paid in cash or stock at election of shareholder o Intention to neutralize dilution effect of stock dividend Dividend (EUR) 0.62 0.55 0.32 0.31 0.30 0.30 0.24 2006 2007 2008 � Interim dividend � Final dividend � Full year dividend Local knowledge. Global power. 12
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