PROPOSAL FOR PROFIT APPROPRIATION Appropriation of profit will be determined in accordance with the articles 31 and 32 of the Articles of Incorporation of AEGON N.V.  The provisions can be summarized as follows: It is proposed to the annual General Meeting of Shareholders on April 22, 2004, to pay a dividend for the year 2003 of EUR 0.40 per common share of EUR 0.12 par value, which after taking into account the EUR 0.20 interim dividend, leads to a final dividend of EUR 0.20 per common share. It is also proposed that the final dividend will be made available entirely in cash or entirely in stock, at the option of the shareholder. The value of the stock dividend will be approximately 5% higher than the value of the cash dividend and will be paid out of the paid-in surplus fund. The period during which shareholders can elect is from April 26 up to and including May 3, 2004. In order to fully reflect the prevailing market price of AEGON N.V. common shares within the indication provided, the number of dividend coupons that gives entitlement to a new common share of EUR 0.12 will be determined on May 10, 2004, after  5.30 p.m., based upon the average share price (quotation Euronext Amsterdam) in the five trading days from May 4 up to and including May 10, 2004. In accordance with article 32, paragraph 3 of the Articles of Incorporation, a dividend equal to 4.5% of the paid up amount of the preferred stock will be distributed in cash. Upon approval of this proposal, profit will be appropriated as follows: On January 2, 2004, AEGON closed the acquisition of a 45% participation in Unirobe, a group of insurance intermediary companies in the Netherlands. On August 5, 2003, AEGON announced an agreement to sell most of the commercial lending business of Transamerica Finance Corporation (TFC) to GE Commercial Finance. The sale price of approximately USD 5.4 billion resulted in an after-tax book gain of  around USD 200 million. On January 14, 2004, the transaction was closed and the book gain will be added directly to shareholders’ equity in 2004.  On January 28, 2004, AEGON announced that it had reached final agreement on a strategic partnership with Caja de Ahorros del Mediterráneo (CAM), a large savings bank in Spain. The agreement comprises the establishment of a new Spanish holding company, which will be owned 50.01% by CAM and 49.99% by AEGON. CAM will contribute 100% of its insurance subsidiary Mediterráneo Vida to the holding company and provide exclusive access to its customer base through its network of 851 branches. AEGON will contribute EUR 150 million in cash to the holding company and an additional EUR 250 million in high quality financial assets. At the end of the fifth year, the final consideration for the insurance subsidiary will be determined on the basis of achieved performance and according to a pre-agreed formula. After the tenth year, parties have agreed to reassess the legal structure in place and both have the right to unwind the holding company without terminating the partnership. If it is decided to unwind the holding company, CAM and AEGON each will own 50% of the life insurance company directly. The EUR 250 million in high quality financial assets plus accrued investment income will return to AEGON. The remainder of the assets of the holding company will be transferred to CAM. The partnership is subject to regulatory approval. The participation in the joint venture will be recognized as net asset value under group companies and participations. AEGON GROUP ANNUAL REPORT 2003 142 SUBSEQUENT EVENTS 1. The General Meeting of Shareholders shall adopt the annual accounts. 2. If the adopted profit and loss account shows a profit, the Supervisory Board may decide, upon the proposal of the Executive Board, to set aside part of the profit to augment and/or form reserves. 3. From the remaining net profit, if it is sufficient to this end, first of all the holders of preferred shares shall receive a dividend on the amount paid-in on their preferred shares, the percentage of which, on an annual basis, shall be equal to the European Central Bank’s fixed interest percentage for basic refinancing transactions to be increased by 1.75 percentage points, all applicable to the first trading day on Euronext Amsterdam in the financial year to which the dividend relates. Apart from this, no other dividend is to be paid on the preferred shares. 4. The remaining profit shall be put at the disposal of the General Meeting of Shareholders. 5. The Executive Board may, subject to the approval of the Supervisory Board, make one or more interim distributions to the holders of common shares and/or to the holders of preferred shares, the latter subject to the maximum dividend amount set forth under 3. 6. A distribution on common shares may take place as a cash payment or as a payment in common shares. In addition, the Executive Board may, subject to the approval of the Supervisory Board, decide to give shareholders the option to elect to receive a distribution as a cash payment or as a payment in common shares. In all cases distribution will be made out of the profit and/or the reserves. 2003 Dividend on preferred shares 95 Interim dividend on common shares (cash portion) 147 Final dividend on common shares (cash portion) 297 Earnings to be retained 1,254 NET INCOME 1,793 OTHER INFORMATION