NOTES TO THE BALANCE SHEETS OF AEGON N.V. Amounts in EUR millions Shares Real estate Total 2003 2002 2003 2002 2003 2002 CONSOLIDATED REVALUATION ACCOUNT SHARES AND REAL ESTATE Balance of revaluations at January 1 2,040 4,105 558 535 2,598 4,640 Unrealized gains and losses on shares and real estate 575 (1,572) 104 12 679 (1,560) Unrealized gains and losses in previous years  on shares and real estate sold in the reporting year 249 1,415 22 (78) 271 1,337 Realized gains and losses on shares and real estate (249) (1,421) (21) 78 (270) (1,343) Transfer to the income statements of indirect income  on shares and real estate (573) (707) (58) (51) (631) (758) Changes in the provision for deferred taxation 23 304 (6) 19 17 323 Other changes 28 (84) (18) 43 10 (41) BALANCE AT DECEMBER 31 2,093 2,040 581 558 2,674 2,598 Unrealized gains and losses on investments are due to changes in stock exchange quotations and reappraisal of real estate of all activities. The indirect income is released from this revaluation account if and as far as each of the individual balances for shares and real estate are positive. Impairments of shares are charged to the realized part of the revaluation account. At December 31, 2003, the minimum reserves as required by law include EUR 876 million for shares and EUR 517 million for real estate. In 2004, these amounts will be kept in the revaluation account. The realized portion, amounting to EUR 1,281 million, will be transferred to the other surplus fund at January 1, 2004. By virtue of acquisitions in accordance with article 98, paragraph 5 of Book 2 of the Dutch Civil Code, on the balance sheet date AEGON kept 27,429,342 of its own common shares with a face value of EUR 0.12 each. The shares have been purchased to hedge stock appreciation rights and stock options granted to executives and employees. Movements in the numbers of repurchased own shares were as follows: OTHER SURPLUS FUND Balance at January 1 30,918,580 Purchase: 1 transaction on May 13, 2003, price EUR 9.72 6,878,962 Sale: 26 transactions, average price EUR 8.28 (10,368,200) BALANCE AT DECEMBER 31 27,429,342 The purchase and sale value of the related shares have been deducted from respectively added to the other surplus fund. Goodwill is the difference between acquisition price and net asset value, based on AEGON accounting principles. The calculated amount is charged to shareholders’ equity in the year of acquisition or at first time consolidation.  Redemptions are included in long-term liabilities. The repayment periods of borrowings vary from in excess of one year up to a maximum of 27 years. The interest rates vary from 1.49% to 9.00% per annum. The market value of the long-term liabilities amounts to EUR 2,896 million (2002: EUR 1,552 million). AEGON GROUP ANNUAL REPORT 2003 140 6 LONG-TERM LIABILITIES 2003 2002 Remaining terms up to 3 years 854 1,215 Remaining terms 4-5 years 893 7 Remaining terms over 5 years 961 396 TOTAL LONG-TERM LIABILITIES 2,708 1,618 Redemptions due in 2004/2003 565 521