Annual General Meeting of Shareholders Aegon N.V. Jaarlijkse Algemene Vergadering van Aandeelhouders Aegon N.V.

Transcription

1 The Hague, May 21, 2014 Annual General Meeting of Shareholders Aegon N.V. Jaarlijkse Algemene Vergadering van Aandeelhouders Aegon N.V.

2 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, please choose channel 2 Voor het beluisteren van een simultaanvertaling in het Nederlands kiest u kanaal 1 2

3 Rob Routs Chairman Supervisory Board Voorzitter Raad van Commissarissen 3

4 Agenda item 1 / Agendapunt 1 Opening 4

5 Agenda item 2 / Agendapunt 2 Presentation on the course of business in 2013 Presentatie over de gang van zaken in

6 Executing on our strategy The Hague, May 21, 2014 Alex Wynaendts, CEO & Chairman of the Executive Board

7 Focus on executing our strategy is delivering clear results Strong performance Higher underlying earnings Strong capital position and ratings Increased dividend 2013 Executing on strategic transformation Getting closer to our customers Expanded digital capabilities Enhanced distribution 7

8 Strong underlying earnings before tax More cash allocated to dividends Strong excess capital position (EUR millions) EUR 1.9 billion EUR 2.2 billion Solvency ratio: 212% AAfinancial strength rating 8 All numbers on this slide refer to full year 2013 or end-year 2013 data

9 Aegon s purpose is to help people take responsibility for their financial future 9 across their life cycle

10 Building trust and creating benefits in 2013 Paid out 20 billion in claims and benefits to our customers Invested 6.3 million in local communities around the world Impact investments of 3 billion 10

11 Global trends support Aegon s businesses Aging leads to significant demand for our products globally Life expectancy at birth in 1950 and in 2015 (in years; overall: male + female) Source: Population Division of the Department of Economic and Social Affairs of the United Nations Secretariat

12 12 Executing on our strategic objectives

13 Optimize portfolio Successful repositioning of Spanish business Divestiture of existing joint ventures Strategic partnership with Spain s largest financial group Spanish divestments generated over EUR 1 billion Continued partnership with Liberbank 13 * Depending on the performance of the partnership, after 5 years an additional amount may be paid

14 Operational excellence Disciplined focus on cost efficiency supports strategic investments Cost reductions allow for increased investments without materially increasing total expenses Cost reduction programs Consolidation from 13 to 3 divisions in the Americas Shared service center in the Americas for additional efficiencies Completed two-year cost reduction program in NL Extensive transformation program in UK Restructuring and deleveraging at holding Strategic investments to respond to our customers changing needs Technology continues to change customer behavior Committed to providing products and services customers need Customers seek different distribution channels New online channels to engage customers Redesigned intermediary capability 14

15 15 Loyal customers Technology continues to change customer behavior

16 16 Loyal customers Customers are more willing to go online

17 17 Loyal customers Extension of successful UK platform with direct-to-consumer proposition

18 Loyal customers Customers are seeking a wider range of distribution channels Spain Turkey Brazil India 18

19 Empower employees Employee engagement and customer commitment closely linked Engagement Enablement 73 High performing norm Financial services norm NB: Both graphs refer to Aegon s overall 2014 Global Employee Survey results

20 Sustainability is at the heart of our strategy Pricing and product development policy puts customer first Dow Jones Sustainability Index (DJSI) performance confirms our actions Aegon ranked Silver Class in the DJSI just behind the sector leader Various key policies established Volunteer hours for employees Sustainable procurement policy Health and safety statement Capital Talent Expertise Trust Benefits Profits Society 20

21 Looking ahead 2014 Further executing on our strategy Aegon well positioned to capture opportunities 21

22 Agenda item 2 / Agendapunt 2 Presentation on the course of business in 2013 Presentatie over de gang van zaken in

23 Agenda item 3.1 / Agendapunt 3.1 Annual Report 2013 Jaarverslag

24 Financial strategy supports strategic transformation The Hague, May 21, 2014 Darryl Button, CFO & Member of the Executive Board

25 Aegon performed strongly in 2013 Underlying earnings before tax (As reported; EUR million) Net income (EUR million) 1,544 1,851 1, , Operating expenses (EUR million) 5,701 Sales* and MCVNB (As reported; EUR million) 6,725 7, ,420 3,177 3, Adjusted expense levels Sales MCVNB 25 * Total sales consist of new life sales, new premiums accident & health, general insurance and 1/10 of gross deposits

26 Increased underlying earnings not reflected in net income due to hedging costs Underlying earnings before tax (As reported; EUR million) 1,544 1,851 1, Net income (EUR million) 1, Earnings up 5% Continued business growth Higher equity markets Partly offset by weaker US dollar Lower net income Positive: Higher gains on investments Lower impairments Lower tax charges Negative: Losses on equity hedges in place to protect capital position Losses due to adjustments in market assumptions 26

27 Strong capital position and cash flows Operational free cash flows (Excl. market impacts; EUR million) Return on equity Excess capital at the holding (EUR billion) Solvency ratio (Insurance Group Directive, IGD) % 228% 212%

28 Local balance sheets well capitalized New capital management framework implemented in 2013 Capital levels (End of 2013) Buffer US NL UK US and the Netherlands strongly capitalized and paying dividends to the holding Target UK capital position significantly improved after GBP 300 million contribution from the holding Floor 28

29 Operational free cash flows: dividends to holding & strengthening of local capital 2013 operational free cash flows in target range of EUR billion Operational free cash flows paid out as dividend to the holding Americas and the Netherlands expected to remain stable; UK cash flows to increase New Markets contributing to increasing operational free cash flow going forward Strong cash flows at the units (EUR billion) 2013 Americas 0.8 Netherlands 0.3 United Kingdom 0.1 New Markets 0.1 Total normalized operational free cash flow 1.3 Market impacts & one-time items 0.2 Operational free cash flow 1.5 translate into dividends to the holding (EUR billion) 2013 Americas 0.9 Netherlands 0.5 United Kingdom 0.0 New Markets 0.1 Dividend paid by units

30 How excess capital was put to use Excess capital in 2013 (EUR billion) (0.5) (0.4) (0.4) (0.4) 2.2 Excess capital January 1, 2013 Net dividends received from business units Acquisitions & divestments Investments in business units Common & preferred dividends Cancellation of preferred shares Funding & operating expenses Excess capital December 31,

31 Active capital management improves financial flexibility Capital management results in Lower funding costs Improving cash flows Increasing return on equity Leverage ratio and fixed charge coverage on track to reach 2014 objectives Lower funding costs* (EUR million, fixed charge coverage) Improved gross leverage** (EUR billion, %) x 8.7 ~6.8 ~ % ~30.0% 3.4x target Q1 13 Q4 13 Q target 31 * Interest expense on financial leverage and preferred dividends; 2013 restated to reflected earnings impact of DAC and longevity accounting changes ** Gross leverage ratio reflects shareholders equity adjusted for DAC and longevity accounting changes

32 Payment of growing and sustainable dividend Proposed final 2013 dividend of EUR 0.11 per share, total 2013 dividend of EUR 0.22 per share Continue to offer our investors a choice between cash and shares, with stated intention to neutralize any share dilution Future dividend growth dependent on strong capital position and cash flows Dividends per share (EUR per share) More cash allocated to dividends (EUR per share) + 5% ** * E 32 * Final 2011 dividend of EUR 0.10 per share ** Assumes 2014 interim dividend maintained at EUR 0.11 per share

33 Positive momentum continued in first quarter of 2014 Underlying earnings up on higher account balances and lower financing costs at the holding Higher sales driven by deposit growth and strong accident & health sales in the US Active capital management further drives down cost of leverage, supports improving RoE Strong cash flows contributing to solid capital position Earnings Fee Sales MCVNB RoE Cash flow* 498m 37% 2.1bn 223m 8.4% 305m +7% vs Q % pp vs Q % vs Q1 13 (4)% -4% vs Q % excluding run-off business capital -7% Q1 vs 13 Q * Operational free cash flow excluding market impact and one-time items

34 Progress towards 2015 targets 30-35% 498m m billion 7-10% 498m 10-12% 498m Fee-based earnings as % of Underlying earnings underlying earnings by % vs Q1 13 Underlying Annual operational earnings free cash +7% flow* vs by Q Grow Underlying underlying earnings earnings before +7% vs tax Q1 on 13 average per annum between 2012 and 2015 Underlying Return on equity earnings by % vs Q % 305 million 7% 8.4% Q Q Q vs. Q Q (9.1% excluding runoff capital) 34 * Excluding market impact and one-time items

35 Agenda item 3.1 / Agendapunt 3.1 Annual Report 2013 Jaarverslag

36 Agenda item 3.2 / Agendapunt 3.2 Remuneration Report 2013 Remuneratierapport

37 Remuneration Report 2013 The Hague, May 21, 2014 Leo van Wijk, Chairman Compensation Committee

38 Aegon s remuneration policy Executive Board Aegon s Global Remuneration Framework applies throughout Aegon Group to: Provide a consistent and integrated approach to remuneration Ensure compliance with European and Dutch regulations for remuneration in financial institutions Executive Board Remuneration Policy adopted by the AGM on May 12, 2011 Executive Board policy already complied with DNB requirements, some refinements were implemented No further changes to Executive Board policy since then 38

39 Executive Board remuneration current outline Fixed compensation (annual salary) + Variable compensation (maximum 100% of annual salary) + Benefits (e.g. pension) Variable compensation: Based on successful achievement of performance indicators Conditionally granted at the start of the performance year Performance period = 1 year Conditionally allocated (awarded) after completion of the performance year, depending on results 50% of the allocation is in shares, 50% in cash 40% of the allocation is paid out/vests in year following performance year 60% of the allocation is deferred and is paid out/vests in the subsequent 3 years, subject to expost assessments After vesting, the variable compensation shares are subject to a holding period of 3 years 39

40 Executive Board remuneration 2013 Remuneration in 2013 Fixed compensation: no change compared to 2012 Deferred variable compensation from previous years paid out/vested (2010 : shares; 2011 : cash and shares) Upfront Variable Compensation regarding performance year 2012 paid out/vested (cash and shares) 3 year holding periods apply to all vested shares Conditional variable compensation allocated over ,33% of fixed compensation for mr. Wynaendts - 98,50% of fixed compensation for mr. Button 40% of the variable compensation related to 2013, is made available in cash and shares in 2014 The remaining part (60%) of conditional variable compensation over the performance year 2013 (both cash and shares) is to be paid out/vest in future years, subject to ex-post assessments 40

41 Executive Board remuneration performance measures & results Variable compensation measures are based on: Financial and non-financial targets (75%) Underlying earnings after tax (15%) Return on equity (15%) Market consistent value of new business (20%) Return on economic required capital (10%) Strategy/sustainability (15%): Aegon s score on the Dow Jones Sustainability Index (7.5%) Employee engagement scores (7.5%) Outcome 2013: 100% 100% Personal targets (25%) Strategy execution e.g. critical change initiatives like customer centricity HR and Sustainability topics e.g. talent development, succession planning Large projects/issues e.g. balance sheet management, reorganizations 93.3% A. Wynaendts 94% D. Button 41

42 Aegon s remuneration policy in general going forward Aegon operates globally, in diverse environments, markets, cultures Opinions, perceptions and appreciation of variable compensation differ Aegon strives for a balance between global consistency and local optimization New/additional/updated legislation and regulations impact remuneration policies: Dutch government proposes to cap variable compensation in financial sector Regulations limit sign-on-, retention- and severance payments Number of Identified Staff expected to increase on the basis of new criteria Crisis-tax over income above EUR 150,000 continues Fiscal treatment of pension accrual in the Netherlands to be limited per January 1, 2015 These changes will impact Aegon s remuneration policies In general, for all staff globally In particular in the Netherlands Including the remuneration for the Executive Board 42

43 Agenda item 3.1 / Agendapunt 3.1 Annual Report 2013 Jaarverslag

44 Agenda item 3.3 / Agendapunt 3.3 Annual Accounts 2013: Proposal to adopt the Annual Accounts for the year 2013 Jaarrekening 2013: Voorstel tot vaststelling van de Jaarrekening

45 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 During the voting: Voting options appear in display Press button: 1 = For 2 = Against 3 = Abstain Choice appears in display During voting you can change your vote Last choice counts Tijdens de stemming: Stemkeuzes verschijnen in venster Maak uw keuze: 1 = Vóór 2 = Tegen 3 = Onthouding Keuze verschijnt in venster Tijdens stemming kunt u uw keuze wijzigen Laatste keuze geldt 45

46 Vote on agenda item 3.3 / Stemming over agendapunt 3.3 Annual Accounts 2013: Proposal to adopt the Annual Accounts for the year 2013 Jaarrekening 2013: Voorstel tot vaststelling van de Jaarrekening

47 Agenda item 4 / Agendapunt 4 Proposal to approve the final dividend 2013 Voorstel tot goedkeuring van het slotdividend over het boekjaar

48 Aegon s dividend policy Cash flows upstreamed to the holding are available to execute our strategy, to fund operating expenses and to pay dividends to shareholders Aegon aims to pay a sustainable dividend to shareholders, which can grow over time if performance of the company allows so Balance prudence versus offering an attractive dividend In normal circumstances, Aegon expects to declare an interim dividend and to propose a final dividend for approval at the AGM 48

49 Aegon s dividend proposal Proposed final dividend for 2013: EUR 0.11 per common share Dividend (EUR) Results in total dividend for 2013 of EUR 0.22 per common share To be paid in cash or stock 0.11 Value of stock dividend approximately equal to cash dividend Final dividend Interim dividend 49

50 Agenda item 4 / Agendapunt 4 Proposal to approve the final dividend 2013 Voorstel tot goedkeuring van het slotdividend over het boekjaar

51 Vote on agenda item 4 / Stemming over agendapunt 4 Proposal to approve the final dividend 2013 Voorstel tot goedkeuring van het slotdividend over het boekjaar

52 Agenda item 5 / Agendapunt 5 Proposal to release the members of the Executive Board from liability for their duties Voorstel tot het verlenen van kwijting aan de leden van de Raad van Bestuur 52

53 Vote on agenda item 5 / Stemming over agendapunt 5 Proposal to release the members of the Executive Board from liability for their duties Voorstel tot het verlenen van kwijting aan de leden van de Raad van Bestuur 53

54 Agenda item 6 / Agendapunt 6 Proposal to release the members of the Supervisory Board from liability for their duties Voorstel tot het verlenen van kwijting aan de leden van de Raad van Commissarissen 54

55 Vote on agenda item 6 / Stemming over agendapunt 6 Proposal to release the members of the Supervisory Board from liability for their duties Voorstel tot het verlenen van kwijting aan de leden van de Raad van Commissarissen 55

56 Agenda item 7 / Agendapunt 7 Proposal to appoint Mr. Robert W. Dineen to the Supervisory Board Voorstel tot benoeming van de heer Robert W. Dineen als lid van de Raad van Commissarissen 56

57 Robert W. Dineen Age: 64 Nationality: American Shares held in the company/aantal aandelen in de vennootschap: None Former occupation/vroegere functie: Vice Chairman of Lincoln Financial Network Memberships other boards/andere bestuursfuncties None 57

58 I have always had the highest regard and respect for Aegon, first as a partner during my tenure at Merrill Lynch, and most recently as a competitor while at Lincoln Financial Group. I trust my many years of experience in the financial services industry will bring great value to the shareholders, customers, employees and the management team of Aegon. 58 Robert W. Dineen

59 Agenda item 7 / Agendapunt 7 Proposal to appoint Mr. Robert W. Dineen to the Supervisory Board Voorstel tot benoeming van de heer Robert W. Dineen als lid van de Raad van Commissarissen 59

60 Voting on agenda item 7 / Stemming over agendapunt 7 Proposal to appoint Mr. Robert W. Dineen to the Supervisory Board Voorstel tot benoeming van de heer Robert W. Dineen als lid van de Raad van Commissarissen 60

61 Agenda item 8 / Agendapunt 8 Proposal to appoint Ms. Corien Wortmann-Kool to the Supervisory Board Voorstel tot benoeming van mevrouw Corien Wortmann-Kool als lid van de Raad van Commissarissen 61

62 Corien M. Wortmann-Kool Age: 54 Nationality: Dutch Shares held in the company/aantal aandelen in de vennootschap: None Main occupation/huidige functie Resigning member of the European Parliament Memberships other boards/andere bestuursfuncties Member Supervisory Board Het Kadaster (NL, not listed) Member Supervisory Board Mercedes-Benz Netherlands (NL, not listed) 62

63 I look forward to helping Aegon achieve a sustainable, innovative and profitable business strategy that earns the trust of both customers and society. I trust my national and international experience in politics and public administration including extensive work in Europe and my knowledge of diverse stakeholder interests will support Aegon in meeting the challenges of a changing environment. 63 Corien M. Wortmann-Kool

64 Agenda item 8 / Agendapunt 8 Proposal to appoint Ms. Corien Wortmann-Kool to the Supervisory Board Voorstel tot benoeming van mevrouw Corien Wortmann-Kool als lid van de Raad van Commissarissen 64

65 Voting on agenda item 8 / Stemming over agendapunt 8 Proposal to appoint Ms. Corien Wortmann-Kool to the Supervisory Board Voorstel tot benoeming van mevrouw Corien Wortmann-Kool als lid van de Raad van Commissarissen 65

66 Agenda item 9 / Agendapunt 9 Proposal to authorize the Executive Board to issue common shares Voorstel tot machtiging van de Raad van Bestuur tot uitgifte van gewone aandelen 66

67 Voting on agenda item 9 / Stemming over agendapunt 9 Proposal to authorize the Executive Board to issue common shares Voorstel tot machtiging van de Raad van Bestuur tot uitgifte van gewone aandelen 67

68 Agenda item 10 / Agendapunt 10 Proposal to authorize the Executive Board to restrict or exclude pre-emptive rights upon issuing common shares Voorstel tot machtiging van de Raad van Bestuur tot beperking of uitsluiting van voorkeursrechten bij de uitgifte van gewone aandelen 68

69 Voting on agenda item 10 / Stemming over agendapunt 10 Proposal to authorize the Executive Board to restrict or exclude pre-emptive rights upon issuing common shares Voorstel tot machtiging van de Raad van Bestuur tot beperking of uitsluiting van voorkeursrechten bij de uitgifte van gewone aandelen 69

70 Agenda item 11 / Agendapunt 11 Proposal to authorize the Executive Board to issue common shares under incentive plans Voorstel tot machtiging van de Raad van Bestuur tot uitgifte van gewone aandelen in het kader van incentiveplannen 70

71 Voting on agenda item 11 / Stemming over agendapunt 11 Proposal to authorize the Executive Board to issue common shares under incentive plans Voorstel tot machtiging van de Raad van Bestuur tot uitgifte van gewone aandelen in het kader van incentiveplannen 71

72 Agenda item 12 / Agendapunt 12 Proposal to authorize the Executive Board to acquire shares in the company Voorstel tot machtiging van de Raad van Bestuur tot verkrijging van eigen aandelen 72

73 Voting on agenda item 12 / Stemming over agendapunt 12 Proposal to authorize the Executive Board to acquire shares in the company Voorstel tot machtiging van de Raad van Bestuur tot verkrijging van eigen aandelen 73

74 Agenda item 13 / Agendapunt 13 Any other business Wat verder ter tafel komt 74

75 Agenda item 14 / Agendapunt 14 Close of the meeting Sluiting van de vergadering 75

76 76 Thank you Dank u wel

77 Please return your voting device and voting card before departing Wilt u voor uw vertrek uw stemkastje en stempas inleveren 77