In accordance with Dutch Accounting Principles Amounts in millions CONSOLIDATED CASH FLOW STATEMENTS The cash flow statement has been set up according to the indirect method. Only those changes affecting liquid assets have been taken into account. The effects of revaluation and currency exchange rate differences have therefore not been included. Currency exchange rate differences had a significant negative impact on liquid assets denominated in foreign currencies. AEGON GROUP ANNUAL REPORT 2003 83 2003 2002 2003 2002 2001 USD USD EUR EUR EUR CASH FLOW FROM OPERATING ACTIVITIES 2,028 1,465 Net income 1,793 1,547 2,397 8,268 4,024 Increase technical provisions net of reinsurance 7,310 4,250 9,820 21,002 26,907 Annuity, GIC and funding agreement deposits 18,568 28,419 26,381 (17,421) (17,297) Annuity, GIC and funding agreement repayments (15,402) (18,269) (19,059) 58 (736) Change in provisions 51 (777) (488) 1,955 1,749 Amortization of policy acquisition costs 1,728 1,848 1,422 81 80 Amortization of interest rate rebates 72 84 102 131 95 Depreciation of equipment 116 100 79 1,069 2,176 Change in current liabilities 945 2,299 734 (801) (87) Change in entrusted funds (708) (92) 1,257 (2,418) (2,733) Deferred policy acquisition costs (2,138) (2,887) (2,558) (43) (47) Interest rate rebates granted (38) (50) (94) (1,175) (43) Change in receivables (1,039) (45) (904) 12,734 15,553 11,258 16,427 19,089 CASH FLOW FROM INVESTING ACTIVITIES Invested and acquired (2,068) (3,234) Real estate and shares (1,828) (3,416) (3,980) (580) (1,081) Shares of group companies and subsidiaries (513) (1,142) (1,673) (109,609) (95,210) Other investments (96,905) (100,560) (89,966) (110) (153) Equipment (97) (162) (194) Disposed and redeemed 1,905 3,770 Real estate and shares 1,684 3,982 3,335 718 299 Shares of group companies and subsidiaries 635 316 1,166 102,347 84,990 Other investments 90,484 89,766 78,254 9 11 Equipment 8 12 11 (714) (718) Indirect return shares and real estate (631) (758) (723) (4,875) (3,980) Change in investments for account of policyholders (4,310) (4,204) (6,961) (677) (61) Other movements (599) (65) (335) (13,654) (15,367) (12,072) (16,231) (21,066) CASH FLOW FROM FINANCING ACTIVITIES 1,165 (747) Change in subordinated and other long-term loans 1,030 (789) 1,107 21 0 Repurchased and sold own shares 19 0 (21) 0 0 Issuance of common shares 0 0 1,685 0 1,944 Paid in capital/withdrawal preferred shares 0 2,053 0 0 (1) Change in deposits withheld from reinsurers 0 (1) 29 0 0 Options exercised 0 0 3 0 (6) Cash settlement stock options 0 (6) (71) — — Cash settlement subordinated convertible loan — — (68) (200) (695) Dividend paid (177) (734) (544) 986 495 872 523 2,120 66 681 CHANGE IN LIQUID ASSETS 58 719 143 1.1311 0.9468 Translation rate EUR/USD: weighted average exchange rate