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Aegon N.V. 02 July 2008

Company News Alert

Substantial common stock price decline since our FY 2007 update report

Common BUY Aegon N.V.’s (Aegon) common stock price has declined significantly since our previous update report,

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http://www.iirgroup.com/researchoracle/viewreport/show/20153
However, despite the negative impact of volatility in global equity markets, we remain optimistic about
the company's ongoing initiatives to expand in emerging economies through strategic acquisitions and
Ticker: AEGN.AS
entry into partnerships and joint ventures. Although we intend to reduce our target price in our next
Target price: €12.59 update report, we believe that the recent decline in the common stock has left the company
Current price: €8.10 undervalued and thus we believe that it offers an attractive investment opportunity at current levels.
Therefore, we maintain our current BUY rating for the Aegon common stock.
Price change
(21.5%)
since last report: We will reassess our common stock rating for Aegon in our next full update report.

ADR BUY We expect to revert to a 6-24 month investment horizon for this stock as we no longer anticipate a
significant currency impact on the ADR in the medium term. Although we now anticipate a negative
currency impact on the ADR, which along with the fundamental reduction will reduce our target price
Ticker: AEG significantly, we maintain our BUY rating for the ADR at the current level.
Target price: US$21.15
Current price: US$12.84
Price change We will reassess our ADR (1 ADR= 1 common share) rating for Aegon in our next full update report.
(21.9%)
since last report:

Supervisor: Somnath Banerjee

Analyst: Silky Jain
Editor: Heloise Capon
Global Research Director:
Satish Betadpur, CFA
Investment horizon - short term actionable trading strategies
This report addresses the needs of strategic investors with a long term investment horizon of 6-12 months. If this
report is provided to you by your broker under the Global Settlement, you may now also access (free of charge) the
short term trading outlook that we publish from time to time for this issuer, looking at the coming 5-30 days for
readers with a shorter trading horizon. These are available online only at www.researchoracle.com.

Next news due:

1H 08 results, 31 July 2008
In our FY 2007 update report, dated 22 April 2008, we upgraded the Aegon common stock from a
HOLD to a BUY on fundamental grounds with a 6-12 month target price of €12.59, indicating a
potential upside of 22%. The ADR was reiterated a BUY with a 6-12 month target price of US$21.15,
indicating a potential upside of 29%.
The Aegon common stock price has declined 21.5% since our previous update report to close at a 52-
week low of €8.10 on 01 July 2008. We believe that the decline in the common stock price reflects
investor concerns regarding the health of the global economy, triggered by the subprime mortgage
crisis in the US, inflationary pressures, reduced consumer spending and its impact on insurance
stocks, and is also in line with the performance of the Dutch financial market. Concerns that financial
sector performance specifically could experience a major decline as a consequence of the global
market turmoil stemming from the credit crunch have compounded the pressure on the common stock
price. The Amsterdam Exchange Index has declined 12.0% since our previous update report, reflecting
macroeconomic concerns, closing at a 52-week low of 414.52 on 01 July 2008.

Although we intend to revise our estimates and target prices downwards when we come to revalue the
stock in our next full update report, our long term outlook for the common stock remains positive.
Furthermore, we believe that the recent decline in the price has created an attractive investment
opportunity. Therefore, we maintain our BUY rating for the common stock at current price levels.

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