annual general meeting ofannual general meeting of ...ad ti r ibl adopting a responsible ......

Annual General Meeting ofAnnual General Meeting of Shareholders AEGON N.V.

The Hague, May 16, 2012

Welcome to the Annual General Meeting of Shareholders

Welkom op de jaarlijkse Algemene Vergadering van Aandeelhouders

In order to hear a simultaneous translation into English,g please choose channel 2

Voor het beluisteren van een simultaanvertaling in het Voor het beluisteren van een simultaanvertaling in het Nederlands kiest u kanaal 1

2

Rob RoutsRob Routs

Chairman Supervisory Board

Voorzitter Raad van CommissarissenVoorzitter Raad van Commissarissen

3

Agenda item 1 / Agendapunt 1

OpeningOpening

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Presentation on the course of business in 2011

Presentatie over de gang van zaken in 2011in 2011

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Transforming AEGONTransforming AEGON

In pursuit of sustainable growthIn pursuit of sustainable growth

Alex Wynaendts CEO & Chairman of the Executive Board

2011: A year of transformation

� Restructuring of AEGON’s operations

� Sharpened focus on core business � Sharpened focus on core business

� Completed repayment to Dutch State

� Strengthening of capital position

A d i i di id d� Announced intention to resume dividend

Transformed AEGON 7

Transformed AEGON

Need to respond to challenges in today’s environment

� Continued volatility financial markets

� New realities for our business � New realities for our business

► Aging populations

► Governments withdrawing

► Customer needs

► Social media

� Enhancing our position for the future

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g p

Financial markets remain challenging

Interest rates remain historically low(10-year benchmark rates)

Mixed development equity markets(January 2010 = 100; in local currency)

4

4.5

120

130

2.5

3

3.5

90

100

110

1.5

2

70

80

US UK NL S&P 500 FTSE AEX

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Negative economic impact from continuing Euro crisis

... as Euro crisis continues (Sovereign spreads versus 10-year German Bunds)

Mild recession projected for Eurozone ... (Development consensus forecasts GDP 2012)

1600

3

4

1200

1400

1600

2

600

800

1000

0

1

J F M A M J J A S O N D J F M A

2011 2012 200

400

-1

J F M A M J J A S O N D J F M A

US UK Eurozone

Month of forecast

0

Jan/

11

Feb/

11

Mar

/11

Apr

/11

May

/11

Jun/

11

Jul/1

1

Aug

/11

Sep

/11

Oct

/11

Nov

/11

Dec

/11

Jan/

12

Feb/

12

Mar

/12

Apr

/12

Spain Portugal Ireland Italy France

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US UK Eurozone Spain Portugal Ireland Italy France

t

t t

f h i fi i l f

A customer-centric organization

� Connecting with our customers

I i i li biliti� Investing in online capabilities

� Improving service levelsImproving service levels

� Measuring customer satisfaction

� Helping people take responsibility

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for their financial future

Sharing common values…

W ki T th

Working

Working Together

� Fully leverage knowledge and expertise across AEGON Working Together

B i i Cl it

Bringing

Bringing Clarity

� Open and ongoing dialogue with our stakeholders Bringing Clarity

Exceeding expectations

Exceeding

Exceeding expectations

� Excel and being accountable for what we do and how we do it

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Expectations

… to further deliver on AEGON’s strategic priorities

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-

Towards sustainable growth

� Exited businesses deemed no longer corelonger core

� Increase fee-based business; � Increase fee based business; reduce spread business

� Pursue organic growth in CEE, Asia and Latin AmericaAsia and Latin America

� Expand and broaden distribution 14

Expand and broaden distribution


� Measure customer loyalty consistently Measure customer loyalty consistently

� Understand our customer and chosen customer segments

� Deliver simple and transparent solutions

� Build strong brands and leverage hisponsorships

� Introduced global set of market 15

� Introduced global set of market conduct principles


� Increase operational efficiency and improve service levels

� Investing in new technology and greater innovationgreater innovation

Ad ti R ibl � Adopting a Responsible Investment Policy

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� Increased accountability

� Focus on supporting innovation

� First Global Employee SurveyFirst Global Employee Survey

Gl b l T l t R i l h d� Global Talent Review launched

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A more comprehensive view of AEGON’s performance

� First integrated Review and � First integrated Review and Sustainability Report

� Reflects full integration of sustainability issues in business strategy andgyoperations

E plains links bet een� Explains links between: ► Financial performance

Strategy► Strategy ► Governance ► Social economic and environmental context

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► Social, economic and environmental context

Strengthened position to deliver sustainable earnings growth

TransformingTransforming Tomorrow

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Presentation on the course of business in 2011

Presentatie over de gang van zaken in 2011in 2011

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Agenda item 3.1 / Agendapunt 3.1

Annual Report 2011Annual Report 2011

Jaarverslag 2011

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Full year 2011 &Full year 2011 & first quarter 2012 results

Jan Nooitgedagt CFO & Member of the Executive Board

2011 Underlying earnings reflect a year of transformation 1 522 MLN

EUR million � Strategic decisions

2011

1,522 MLN � Lower interest rates

and equity markets 2011 1,522 and equity markets

R d UK 2010 1,833

� Redress program UK

2009 1,129

� Provisioning to account for rising life

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expectancy rates

2011 Net income

872 MLN

EUR million � Lower underlying earnings

2011

872 MLN earnings

� Fewer gains on 2011 872 � Fewer gains on

investments

2010 1,760

� Offset decrease in i t d l

2009 204

income tax and lower impairment charges

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25

Cost savings in 2011 offset by restructuring charges

� Cost savings in line with plans and strategic focus

� Investments in new propositions Distribution initiatives ► Distribution initiatives

► Pension platform UK

� Restructuring charges mainly in NL and UK

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2011 Sales & deposits demonstrate strength of franchise

New life sales Gross deposits New life sales

1 835 MLN

EUR million Gross deposits

32 BLN

EUR billion

2011

1,835 MLN

2011

32 BLN

2011 1,835

2011 32

2010 2,081

2010 33

2009 1,950

2009 28

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Return on equity

6 7%

In % � RoE for ongoing business 7 9%

2011

6.7% business 7.9%

X Higher average 2011 6.7

X Higher average shareholder’s equity

2010 8.6 X Lower underlying

earnings 2009

5.1

earnings

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3 5% 0 % 0 3% 0 % %

Capital base ratio of 74.2% - on target to exceed 75% by end 2012 ExcessCapital Group

IGD US

RBC ratio UK

Pillar I Netherlands

IGD

EUR 1 2

Excess capital in holding

Capital base ratio

195% 453% 149% 195%December 31, 2011 73.5% EUR 1.2 bln

Capital base ratio roll forward

73.5% 0.2% 0.3% 0.2% 74.2%

Q4 2011 Retained Up-streamed Holding Q1 2012

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earnings capital from operating units

and other

► Demonstrating strength of franchise

Q1 2012: sales and earnings increase; strong capital position maintained

� Underlying earnings 3% up to EUR 425 million ► Business growth, cost reductions and favorable markets g ,

� Net income 59% up to EUR 521 million ► Positive fair value items and low impairments

� Total sales 25% up to EUR1 8 billionTotal sales 25% up to EUR1.8 billion

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� Operating expenses reduced by 7%

� Strong capital position and operational free cash flows � Strong capital position and operational free cash flows

( g

Focus on delivering on targets*

Achieve return on equity of Grow underlying earnings before tax by

Double fee-based earnings to Increase annual normalized operational free cash flow to

10-12% by 2015

7-10% on average per annum

30-35% €1.3-1.6 billion

y g p between 2010 and 2015 of underlying earnings by 2015 by 2015

35% Fee-based earnings

€405 million

Normalized operational free cash flow

Underlying earnings before tax

3%

Return on equity

6.9% (7.8% excluding

of Q1 2012 underlying earnings Q1 2012

million Q1 12 compared to Q1 11

run-off capital)

Q1 2012

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* Main economic assumptions embedded in targets: annual gross equity market return of 9%, 10 year US interest rate of 4.75% in 2016 and EUR/USD rate of 1.35.

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Conclusion

� 2011, a year of transformation; positioning for the future

�� Underlying earnings affected by financial markets Underlying earnings affected by financial markets, UK exceptional charges and provisioning for rising life

� Restructuring in the UK finalized; in the Netherlands on track

�� Strong franchise evidenced by resilient sales Strong franchise evidenced by resilient sales

� Capital position remains strong

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May 12th 2011

► The Executive Board policy already complied with DNB requirements

Remuneration policy

� AEGON Global Remuneration Framework introduced throughout � AEGON Global Remuneration Framework introduced throughout AEGON Group to comply with new European regulations for financial institutions

� The Executive Board policy was adopted by the AGM onThe Executive Board policy was adopted by the AGM on

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► The Executive Board policy already complied with DNB requirements, some refinements were implemented

Executive Board remuneration 2011

� Remuneration in 2011 � Remuneration in 2011

► Fixed compensation paid in 2011 increased marginally to reflect cost of living increase awarded to all AEGON staff in The Netherlandsliving increase awarded to all AEGON staff in The Netherlands

► No variable pay has been paid in 2011

� Variable Compensation over 2011

► The Executive Board decided to forego the cash payment payable in 2012

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► The Executive Board decided to forego the cash payment payable in 2012 over AEGON’s 2011 performance year

► Number of shares made available in 2012 is 34,607 and 22,501 for Mr. Wynaendts and Mr. Nooitgedagt respectively

► The remaining part (60%) of variable compensation over the performance fyear 2011 is to be paid out in future years subject to ex-post assessments

–

Executive Board remuneration 2012

� Adjustment of base pay to reflect cost of living increases awarded to all staff of AEGON in the Netherlands in previous years

� Variable compensation based on: ► Financial targets (75%), aligned with 2015 AEGON N.V. targets

• Underlying earnings after tax • Return on equity • Market consistent value of new business

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• Return on economic required capital • Sustainability: AEGON’s score for the Dow Jones Sustainability Index

► Personal targets (25%) ► Personal targets (25%) • Large projects/issues – e.g. EU commitments, Solvency II • Strategy review • HR and Sustainability related subjects e g talent development employee engagement • HR and Sustainability related subjects e.g. talent development, employee engagement


Annual Report 2011Annual Report 2011

Jaarverslag 2011

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Annual Accounts 2011: Proposal to adopt the Annual Accounts 2011

Jaarrekening 2011:Jaarrekening 2011: Voorstel tot vaststelling van de

Jaarrekening 2011

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Voting procedure / Stemprocedure

Prior to the voting: – Insert card with chip facing you

Name appears in display

Vóór de stemming: – Plaats kaart met chip naar voren

Naam verschijnt in venster – Name appears in display

During the voting: – Voting options appear in display

– Naam verschijnt in venster

Tijdens de stemming: – Stemkeuzes verschijnen in venster

– Press button:

1 = For 2 = Against

– Maak uw keuze:

1 = Vóór 2 = Tegen 2 = Against

3 = Abstain

– Choice appears in display

2 = Tegen 3 = Onthouding

– Keuze verschijnt in venster – During voting you can change

your vote – Last choice counts

– Tijdens stemming kunt u uw keuze wijzigen

– Laatste keuze geldt

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Vote on / Stemming over: Agenda item 3.2 / Agendapunt 3.2

Annual Accounts 2011: Proposal to adopt the Annual Accounts 2011

Jaarrekening 2011:Jaarrekening 2011: Voorstel tot vaststelling van de

Jaarrekening 2011

38


Proposal to approve the dividend 2011Proposal to approve the dividend 2011

V t l t t dk i h t di id dVoorstel tot goedkeuring van het dividend over het boekjaar 2011

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AEGON’s dividend policy

� Aiming for a sustainable dividend, which can grow over time if performance of the company allows so

� Cash flows received from operating units are used for holding expenses, including funding costs

� Cash flow after holding expenses available to execute strategy and to fund dividends ► Balance prudence versus offering an attractive dividend ► Local insurance regulations

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Value of stock dividend approximately equal to cash dividend

AEGON’s dividend proposal

� Proposed final dividend for 2011 of EUR 0.10 per common share

� Related to second half of 2011

� To be paid in cash or stockp

� Value of stock dividend approximately equal to cash dividend

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Vote on / Stemming over: Agenda item 4 / Agendapunt 4

Proposal to approve the dividend 2011Proposal to approve the dividend 2011

V t l t t dk i h t di id dVoorstel tot goedkeuring van het dividend over het boekjaar 2011

42


Proposal to release the members of the pExecutive Board from liability for their duties

Voorstel tot het verlenen van kwijting aan de leden van de Raad van Bestuurleden van de Raad van Bestuur

43


Proposal to release the members of the pExecutive Board from liability for their duties

Voorstel tot het verlenen van kwijting aan de leden van de Raad van Bestuurleden van de Raad van Bestuur

44


Proposal to release the members of the Supervisory Board from liabilitySupervisory Board from liability

for their duties

Voorstel tot het verlenen van kwijting aan de leden van de Raad van Commissarissenleden van de Raad van Commissarissen

45


Proposal to release the members of the Supervisory Board from liabilitySupervisory Board from liability

for their duties

Voorstel tot het verlenen van kwijting aan de leden van de Raad van Commissarissenleden van de Raad van Commissarissen

46


Proposal to appoint the independent auditorProposal to appoint the independent auditor

Voorstel tot benoeming van de externe accountantexterne accountant

47

process

Appointment independent auditor

� Proposal to appoint Ernst & Young for 2012 accounts ► Based on recommendation Audit Committee ► Lead audit partner rotated in 2011

� Audit tender process ► Audit for the 2014 accounts will be put to tender ► New legislation to be expected: mandatory audit firm rotation from 2014

or l tlater

� AGM 2013 ► Proposal to appoint external auditor for 2013 accounts ► Proposal to appoint external auditor for 2014 accounts based on outcome

tendertender process

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Proposal to appoint the independent auditorProposal to appoint the independent auditor

Voorstel tot benoeming van de externe accountantexterne accountant

49


Proposal to reappoint Mr. I.W. Bailey, II to thep pp y, Supervisory Board

Voorstel tot herbenoeming vanVoorstel tot herbenoeming van de heer I.W. Bailey, II als lid

van de Raad van Commissarissen

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-

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Irving W. Bailey, II

A 70 Age: 70

Nationality: Americany

Memberships other boards:

- Board of Directors of Computer Sciences CorpBoard of Directors of Computer Sciences Corp. - Board of Directors of Hospira, Inc. Not listedNot listed

- Senior advisor to Chrysalis Ventures, LLC





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Proposal to reappoint Mr. R.J. Routs to the p pp Supervisory Board

Voorstel tot herbenoeming vanVoorstel tot herbenoeming van de heer R.J. Routs als lid


54

Robert J. Routs

A 65 Age: 65

Nationality: Dutchy

Memberships other boards: - Chairman Supervisory Board DSM N VChairman Supervisory Board DSM N.V. - Vice-chairman Supervisory Board KPN N.V. - Member Board of Directors Canadian Utilities LtdMember Board of Directors Canadian Utilities Ltd. - Member Board of Directors A.P. Møller–Mærsk A/S - Member Board of Directors AECOM Technology Corp.

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Member Board of Directors AECOM Technology Corp.





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Proposal to reappoint Mr. B. van der Veer to p pp the Supervisory Board

Voorstel tot herbenoeming vanVoorstel tot herbenoeming van de heer B. van der Veer als lid


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Member Supervisory Board Siemens Nederland N.V. - Member Supervisory Board FrieslandCampina N.V.

Ben van der Veer

A 61 Age: 61

Nationality: Dutchy

Memberships other boards: - Member Supervisory Board TomTom N.V. - Member Supervisory Board Reed Elsevier N.V. - Non-executive member Board of Directors Reed

El i PLC Elsevier PLC Not listed

Member Supervisory Board Siemens Nederland N V -

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Proposal to reappoint Mr. D.P.M. Verbeek to p pp the Supervisory Board

Voorstel tot herbenoeming vanVoorstel tot herbenoeming van de heer D.P.M. Verbeek als lid


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-

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Member Advisory Board CVC Europe - Member Advisory Board OVG Re/developers

Dirk P.M. Verbeek

A 61 Age: 61

Nationality: Dutchy

Memberships other boards:Memberships other boards: Not listed

Chairman Supervisory Board Robeco Groep N V- Chairman Supervisory Board Robeco Groep N.V. - Member Supervisory Board Aon Groep Nederland B.V. - Advisor to President and CEO of Aon CorporationAdvisor to President and CEO of Aon Corporation - Chairman of Benelux Advisory Board Leonardo & Co. B.V. - Member Advisory Board CVC Europe





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Proposal to authorize the Executive Board pto issue common shares

Voorstel tot machtiging van de Voorstel tot machtiging van de Raad van Bestuur tot uitgifte

van gewone aandelen

66


Proposal to authorize the Executive Board pto issue common shares

Voorstel tot machtiging van de Voorstel tot machtiging van de Raad van Bestuur tot uitgifte

van gewone aandelen

67


Proposal to authorize the Executive Board to restrict or exclude pre emptive rights upon to restrict or exclude pre-emptive rights upon

issuing common shares

Voorstel tot machtiging van deg gRaad van Bestuur tot beperking of uitsluiting

van voorkeursrechten bij de uitgifte vanvan voorkeursrechten bij de uitgifte van gewone aandelen

68


Proposal to authorize the Executive Board to restrict or exclude pre emptive rights upon to restrict or exclude pre-emptive rights upon

issuing common shares

Voorstel tot machtiging van deg gRaad van Bestuur tot beperking of uitsluiting

van voorkeursrechten bij de uitgifte vanvan voorkeursrechten bij de uitgifte van gewone aandelen

69


Proposal to authorize the Executive Board to issue common shares underto issue common shares under

incentive plans

Voorstel tot machtiging van de Voorstel tot machtiging van de Raad van Bestuur tot uitgifte van gewone

aandelen in het kader van incentive-plannen

70


Proposal to authorize the Executive Board to issue common shares underto issue common shares under

incentive plans

Voorstel tot machtiging van de Voorstel tot machtiging van de Raad van Bestuur tot uitgifte van gewone

aandelen in het kader van incentive-plannen

71


Proposal to authorize the Executive Board pto acquire shares in the company

Voorstel tot machtiging van de Voorstel tot machtiging van de Raad van Bestuur tot verkrijging van eigen

aandelen door de vennootschap

72


Proposal to authorize the Executive Board pto acquire shares in the company

Voorstel tot machtiging van de Voorstel tot machtiging van de Raad van Bestuur tot verkrijging van eigen

aandelen door de vennootschap

73


Any other businessAny other business

Wat verder ter tafel komt

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Close of the meetingClose of the meeting

Sluiting van de vergadering

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Thank you Thank you

Dank u welDank u wel

WWW.AEGON.COM

Please return your voting device and voting card before departingvoting card before departing

Wilt u voor uw vertrek uw stemkastje en stempas inleveren

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annual general meeting ofannual general meeting of ...ad ti r ibl adopting a responsible ......

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