Invitation to the Annual General Meeting of Allianz SE on May 5, 2010 · 2020. 2. 7. · 4...
Transcript of Invitation to the Annual General Meeting of Allianz SE on May 5, 2010 · 2020. 2. 7. · 4...
Invitationto the Annual General Meetingof Allianz SEon May 5, 2010
2 Agenda
Contents
Agenda 4
1. PresentationoftheapprovedAnnualFinancialStatementsandtheapprovedConsolidatedFinancialStatementsasatDecember31,2009,andoftheManagementReportsforAllianzSEandfortheGroup,theExplanatoryReportsontheinformationpursuantto§289(4),§315(4)and§289(5)oftheGermanCommercialCode(Handelsgesetzbuch)aswellastheReportoftheSupervisoryBoardforthefiscalyear2009 4
2. Appropriationofnetearnings 4
3. ApprovaloftheactionsofthemembersoftheManagementBoard 5
4. ApprovaloftheactionsofthemembersoftheSupervisoryBoard 5
5. ByelectiontotheSupervisoryBoard 5
6. ApprovaloftheremunerationsystemfortheManagementBoardmembersofAllianzSE 6
7. CreationofanAuthorizedCapital2010/I,cancellationoftheAuthorizedCapital2006/IandcorrespondingamendmenttotheStatutes 6
8. CreationofanAuthorizedCapital2010/IIfortheissuanceofsharestoemployees,cancellationoftheAuthorizedCapital2006/IIandcorrespondingamendmenttotheStatutes 10
9. Approvalofanewauthorizationtoissuebondscarryingconversionand/oroptionrightsaswellasconvertibleparticipationrights,creationofaConditionalCapital2010,cancellationofthecurrentauthorizationtoissuebondscarryingconversionand/oroptionrights,cancellationoftheConditionalCapital2006andcorrespondingamendmenttotheStatutes 12
10.Authorizationtoacquiretreasurysharesfortradingpurposes 19
11.Authorizationtoacquireandutilizetreasurysharesforotherpurposes 20
12.Authorizationtousederivativesinconnectionwiththeacquisitionoftreasurysharespursuantto§71(1)no.8oftheGermanStockCorporationAct(Aktiengesetz) 25
13.ApprovalofcontrolandprofittransferagreementbetweenAllianzSEandAllianzCommonApplicationsandServicesGmbH 27
14.ApprovalofcontrolandprofittransferagreementbetweenAllianzSEandAZArgos45VermögensverwaltungsgesellschaftmbH 29
Allianz SE, MunichISIN DE0008404005
DisclaimerThisisatranslationoftheInvitationtoandAgendaoftheAnnualGeneralMeetingofAllianzSE.OnlytheGermanversionofthisdocumentislegallybindingonAllianzSE.Thistranslationisprovidedtoshareholdersforconveniencepurposesonly.NowarrantyismadeastotheaccuracyofthistranslationandAllianzSEassumesnoliabilitywithrespectthereto.
Agenda 3
Additional Information 32
Prerequisites for participating in the Annual General Meeting and exercising voting rights 32
Procedure for voting by proxy 33
Procedure for absentee voting 34
Forms provided by the Company for notice of participation, granting of proxy and absentee voting 35
Information on shareholders’ rights pursuant to Art. 56 sentence 2 and sentence 3, of Regulation (EC) no. 2157/2001 (SE-Regulation – SE-VO), § 50 (2) SE Implementation Act (SE-Ausführungsgesetz – SEAG), §§ 122 (2), 126 (1), 127, 131 (1) German Stock Corporation Act (AktG) 36
Request for amendments to the Agenda pursuant to Art. 56 sentence 2 and sentence 3 of the SE-Regulation, § 50 (2) SEAG, § 122 (2) German Stock Corporation Act 36
Shareholder proposals and election nominations pursuant to §§ 126 (1), 127 German Stock Corporation Act 37
Shareholders’ right to be informed pursuant to § 131 (1) German Stock Corporation Act 38
Additional explanations 39
Web site where information pursuant to § 124 a German Stock Corporation Act can be accessed 39
Limitations set forth in the Statutes on registering shares belonging to others in the share register in one’s own name 39
Live webcast of the Annual General Meeting 40
Publication in the Electronic Federal Gazette (elektronischer Bundesanzeiger) 41
Information on Agenda item 5 (details regarding the candidate for election as shareholder representative to the Supervisory Board) 42
Report on Agenda item 7 (creation of an Authorized Capital 2010/I) 43
Report on Agenda item 8 (creation of an Authorized Capital 2010/II) 47
Report on Agenda item 9 (authorization to issue bonds carrying conversion or option rights and convertible participation rights) 48
Report on Agenda item 11 (authorization to acquire and utilize treasury shares for other purposes) 53
Report on Agenda item 12 (authorization to use derivatives in connection with the acquisition of treasury shares pursuant to § 71 (1) no. 8 German Stock Corporation Act) 58
4 Invitation/Agenda
Invitation to the Annual General Meeting
WeherebyinviteourshareholderstotheAnnual General Meeting of Allianz SE, Munich tobeheldon Wednesday, May 5, 2010 at 10:00 a. m. attheOlympiahalleintheOlympiapark,Coubertinplatz,80809Munich,Germany.
Agenda
1. Presentation of the approved Annual Financial Statements and the approved Consolidated Financial Statements as at December 31, 2009, and of the Manage-ment Reports for Allianz SE and for the Group, the Explanatory Reports on the information pursuant to § 289 (4), § 315 (4) and § 289 (5) of the German Com-mercial Code (Handelsgesetzbuch) as well as the Report of the Supervisory Board for the fiscal year 2009ThedocumentsareavailableforinspectionontheInternetatwww.allianz.com/agm.Copieswillbesenttoshareholdersuponrequest.Moreover,thesedocumentswillbemadeavailableandexplainedattheAnnualGeneralMeeting.Asstipulatedbylaw,noresolutionisplannedforAgendaitem1,astheSupervisoryBoardhasalreadyapprovedtheAnnualFinancialStatementsofAllianzSEandtheConsolidatedFinancialStatementsoftheAllianzGroup.
2. Appropriation of net earningsTheManagementBoardandtheSupervisoryBoardproposethattheavailablenetearnings(Bilanzgewinn)ofAllianzSEofEUR1,860,990,000forthefiscalyear2009beappropriatedasfollows:
DistributionofadividendofEUR4.10pernoparshareentitledtoadividend EUR1,860,990,000
TotheextentthattheCompanyholdstreasurysharesonthedayoftheAnnualGeneralMeetingthatarenotentitledtodividendspursuantto§71boftheGermanStockCorporationAct(Aktiengesetz,AktG)*,theamountattributabletosuchsharesshallbecarriedforwardtonewaccount.
* TheprovisionsoftheGermanStockCorporationActapplytotheCompanypursuanttoArt.9(1)lit.c)ii),Art.10oftheCouncilRegulation(EC)No.2157/2001datedOctober8,2001ontheStatuteforaEuropeancompany(SE)(hereinafterSERegulationorSEVO),insofarasnothingelseisstipulatedinspecialrulesoftheSERegulation.
5 Agenda
3. Approval of the actions of the members of the Management Board TheManagementBoardandtheSupervisoryBoardproposethattheactionsinfiscalyear2009ofthemembersoftheManagementBoardofAllianzSEthatheldofficeinthefiscalyear2009beapproved.
4. Approval of the actions of the members of the Supervisory BoardTheManagementBoardandtheSupervisoryBoardproposethattheactionsinfiscalyear2009ofthemembersoftheSupervisoryBoardofAllianzSEthatheldofficeinthefiscalyear2009beapproved.
5. By-election to the Supervisory BoardThroughthedecisionoftheAmtsgerichtMünchen(MunichLocalCourt),Mr.PeterDenisSutherlandhasbeenappointedamemberoftheSupervisoryBoardofAllianzSE,astheshareholderrepresentativetoreplaceDr.FranzB.Humer,whoisnolongeramemberoftheSupervisoryBoard,untiltheendoftheAnnualGeneralMeetingonMay5,2010.
PursuanttoArt.40(2),(3)ofCouncilRegulation(EC)No.2157/2001ofOctober8,2001ontheStatuteforaEuropeancompany(SE)(referredtohereinafterastheSERegulationorSEVO),§17SEImplementationAct(SEAusführungsgesetz,SEAG),§21(3)SEParticipationAct(SEBeteiligungsgesetz,SEBG),PartBoftheAgreementontheParticipationofEmployeesinAllianzSEofSeptember20,2006(inthefollowingcalled:EmployeeParticipationAgreement),§6oftheStatutesofAllianzSE,theSupervisoryBoardismadeupoftwelvememberswhoareappointedbytheAnnualGeneralMeeting.Outofthosetwelvemembers,underPartBFig.2oftheEmployeeParticipationAgreement,§6sentence2oftheCompany’sStatutes,sixmembersaretobeappointedattheproposaloftheemployees.
AsthetermofofficeofMr.PeterDenisSutherland’sappointmentbycourtislimitedtotheendoftheAnnualGeneralMeetingonMay5,2010,ashareholderrepresentativeistobeelectedtotheSupervisoryBoardbytheAnnualGeneralMeeting.
6 Agenda
TheSupervisoryBoardproposesthatthefollowingresolutionbeadopted:
Mr.PeterDenisSutherland,residinginLondon,GreatBritain,legalexpert,formerchairman(ofBoardofDirectors)ofBPp.l.c.,London,GreatBritain,chairman(ofBoardofDirectors)ofGoldmanSachsInternationalbasedinLondon,GreatBritain,willbeappointedasamemberoftheSupervisoryBoardofAllianzSEforatermofofficelastinguntiltheendoftheAnnualGeneralMeetingwhichresolvesonthedischargeforfiscal2011,butfornolongerthan3years.
TheAnnualGeneralMeetingisnotboundbythisnomination.
6. Approval of the remuneration system for the Management Board members of Allianz SE§120(4)GermanStockCorporationAct(AktG)intheversionoftheLawontheAppropriatenessofManagementBoardCompensation(GesetzzurAngemessenheitderVorstandsvergütung,VorstAG)whichcameintoforceonAugust5,2009providesforthepossibilitythattheAnnualGeneralMeetingresolvesontheapprovaloftheremunerationsystemfortheManagementBoardmembers.ThecurrentlyvalidremunerationsystemformembersoftheAllianzSEManagementBoardissetoutintheRemunerationReportwhichisaccessibleontheInternetaspartoftheAnnualReportatwww.allianz.com/agm.
TheManagementBoardandtheSupervisoryBoardproposethatthecurrentlyvalidremunerationsystemfortheAllianzSEManagementBoardmembersbeapproved.
7. Creation of an Authorized Capital 2010/I, cancellation of the Authorized Capital 2006/I and corresponding amendment to the StatutesTheAuthorizedCapital2006/IofAllianzSE(§2(3)oftheStatutesofAllianzSE)hasbeenpartiallyutilizedandcurrentlyamountstoEUR406,545,646.08(originallyEUR450,000,000).TheAuthorizedCapital2006/IisstillvaliduptoFebruary7,2011.AnewAuthorizedCapitalamountingtoEUR550,000,000shallthereforebecreated(AuthorizedCapital2010/I).TheAuthorizedCapital2006/IshallbecancelledwhenthenewAuthorizedCapital2010/Ibecomeseffective.
TheManagementBoardandtheSupervisoryBoard,therefore,proposethatthefollowingresolutionbeadopted:
Agenda 7
a) TheManagementBoardshallbeauthorizedtoincreasetheCompany’scapitalstockonceorseveraltimesonorbeforeMay4,2015,upontheapprovaloftheSupervisoryBoard,byissuingnewregisterednoparvaluesharesagainstcontributionincashand/orinkindbyuptoatotalofEUR550,000,000(AuthorizedCapital2010/I).
Ifthecapitalstockisincreasedagainstcontributionsincashtheshareholdersaretobegrantedasubscriptionright.Thesharesshallbetakenoverbycreditinstitutionsalongwiththeobligationthattheyshallbeofferedtoshareholdersforsubscription.TheManagementBoardshallbeauthorized,however,toexcludesuchshareholders’subscriptionrightupontheapprovaloftheSupervisoryBoard
– forfractionalamounts;
– totheextentnecessarytograntsubscriptionrightstonewsharestoholdersofbonds(includingparticipationrights)issuedbyAllianzSEoritsGroupcompaniesthatcarryconversionoroptionrightsoraconversionobligationtotheextentthatsuchholderswouldbeentitledtoafterhavingexercisedtheirconversionoroptionrightsorafteranyconversionobligationhadbeenfulfilled;
– iftheissuepriceofthenewsharesisnotsignificantlybelowthestockmarketpriceandtheaggregatenumberofsharesissuedunderexclusionofsubscriptionrightspursuantto§186(3)sentence4oftheGermanStockCorporationAct(AktG)doesnotexceed10%ofthecapitalstock,neitheronthedateonwhichthisauthorizationtakeseffectnoronthedateofexerciseofthisauthorization.Thesaleoftreasurysharesshallbecountedtowardsthislimitationprovidedthatthesaleoccursduringthetermofthisauthorization,subjecttotheexclusionofsubscriptionrightspursuantto§186(3)sentence4oftheGermanStockCorporationAct(AktG).Furthermore,suchsharesshallcounttowardsthislimitationthatwereormustbeissuedtoservicebonds(includingparticipationrights)withconversionoroptionrightsoraconversionobligation,providedthatthebondsorparticipationrightswereissuedduringthetermofthisauthorizationsubjecttoexclusionofsubscriptionrightsincorrespondingapplicationof§186(3)sentence4oftheGermanStockCorporationAct(AktG).
8 Agenda
Furthermore,theManagementBoardshallbeauthorized,upontheapprovaloftheSupervisoryBoard,toexcludeshareholders’subscriptionrightsinthecaseofacapitalincreaseagainstcontributionsinkind.
Thesumtotalofsharesissuedagainstcontributionincashand/orinkindinaccordancewiththisauthorization,subjecttotheexclusionofthesubscriptionright,shallnotexceedaproportionateamountofthecapitalstockofEUR232,396,800(equivalentto20%ofthecurrentcapitalstock).Suchsharesshallcounttowardsthislimitationthatwereormustbeissued,subjecttotheexclusionofthesubscriptionright,toservicebonds(includingparticipationrights)withconversionoroptionrightsoraconversionobligation,providedthatthebondsorparticipationrightswereissuedinexerciseoftheauthorizationsetoutinAgendaitem9oftheAnnualGeneralMeetingdatedMay5,2010.
TheManagementBoardshallalsobeauthorized,upontheapprovaloftheSupervisoryBoard,todeterminetheadditionalrightsofthesharesandtheconditionsoftheshareissue.
b) §2(3)oftheStatutesshallbeamendedasfollows:
“2.3TheManagementBoardisauthorizedtoincreasetheCompany’scapitalstockonceorseveraltimesonorbeforeMay4,2015,upontheapprovaloftheSupervisoryBoard,byissuingnewregisterednoparvaluesharesagainstcontributionincashand/orinkindbyuptoatotalofEUR550,000,000(AuthorizedCapital2010/I).
Ifthecapitalstockisincreasedagainstcontributionsincashtheshareholdersaretobegrantedasubscriptionright.Thesharesshallbetakenoverbycreditinstitutionsalongwiththeobligationthattheyshallbeofferedtoshareholdersforsubscription.TheManagementBoardshallbeauthorized,however,toexcludesuchshareholders’subscriptionrightupontheapprovaloftheSupervisoryBoard
– forfractionalamounts;
Agenda 9
– totheextentnecessarytograntsubscriptionrightstonewsharestoholdersofbonds(includingparticipationrights)issuedbyAllianzSEoritsGroupcompaniesthatcarryconversionoroptionrightsoraconversionobligationtotheextentthatsuchholderswouldbeentitledtoafterhavingexercisedtheirconversionoroptionrightsorafteranyconversionobligationhadbeenfulfilled;
– iftheissuepriceofthenewsharesisnotsignificantlybelowthestockmarketpriceandtheaggregatenumberofsharesissuedunderexclusionofsubscriptionrightspursuantto§186(3)sentence4oftheGermanStockCorporationAct(AktG)doesnotexceed10%ofthecapitalstock,neitheronthedateonwhichthisauthorizationtakeseffectnoronthedateofexerciseofthisauthorization.Thesaleoftreasurysharesshallbecountedtowardsthislimitationprovidedthatthesaleoccursduringthetermofthisauthorization,subjecttotheexclusionofsubscriptionrightspursuantto§186(3)sentence4oftheGermanStockCorporationAct(AktG).Furthermore,suchsharesshallcounttowardsthislimitationthatwereormustbeissuedtoservicebonds(includingparticipationrights)withconversionoroptionrightsoraconversionobligation,providedthatthebondsorparticipationrightswereissuedduringthetermofthisauthorizationsubjecttoexclusionofsubscriptionrightsincorrespondingapplicationof§186(3)sentence4oftheGermanStockCorporationAct(AktG).
Furthermore,theManagementBoardshallbeauthorized,upontheapprovaloftheSupervisoryBoard,toexcludeshareholders’subscriptionrightsinthecaseofacapitalincreaseagainstcontributionsinkind.
Thesumtotalofsharesissuedagainstcontributionincashand/orinkindinaccordancewiththisauthorization,subjecttotheexclusionofthesubscriptionright,shallnotexceedaproportionateamountofthecapitalstockofEUR232,396,800;suchsharesshallcounttowardsthislimitationthatwereormustbeissued,subjecttotheexclusionofthesubscriptionright,toservicebonds(includingparticipationrights)withconversionoroptionrightsoraconversionobligation,providedthatthebondsorparticipationrightswereissuedinexerciseoftheauthorizationsetoutinAgendaitem9oftheAnnualGeneralMeetingdatedMay5,2010.
10 Agenda
TheManagementBoardshallalsobeauthorized,upontheapprovaloftheSupervisoryBoard,todeterminetheadditionalrightsofthesharesandtheconditionsoftheshareissue.”
c) TheAuthorizedCapital2006/Ipursuantto§2(3)oftheStatutes,adoptedbytheExtraordinaryGeneralMeetingonFebruary8,2006underitems1and3oftheAgenda,stillexistingintheamountofEUR406,545,646.08,shallbecancelleduponeffectivenessofthenewAuthorizedCapital2010/I.
d) TheManagementBoardisinstructedtofiletheresolutiononthecancellationoftheAuthorizedCapital2006/Iwiththecommercialregister(Handelsregister)insuchamannerthatthecancellationwillonlybeenteredintothecommercialregisterifthenewAuthorizedCapital2010/Itobeadoptedpursuanttolit.a)andb)ofthisAgendaitemwillberegisteredatthesametime.TheManagementBoardshallbeauthorizedtoapplytohavetheAuthorizedCapital2010/IregisteredinthecommercialregisterindependentlyfromtheotherresolutionsoftheAnnualGeneralMeeting.
8. Creation of an Authorized Capital 2010/II for the issuance of shares to employees, cancellation of the Authorized Capital 2006/II and corresponding amendment to the StatutesTheAuthorizedCapital2006/IIofAllianzSE(§2(4)oftheStatutesofAllianzSE)createdforthepurposeofissuingsharestoemployeeshasbeenpartiallyutilizedandcurrentlyamountstoEUR5,880,296.96(originallyEUR15,000,000).TheAuthorizedCapital2006/IIisstillvaliduntilFebruary7,2011.AnewAuthorizedCapitalfortheissueofsharestoemployeesshallthereforebecreated(AuthorizedCapital2010/II).TheAuthorizedCapital2006/IIshallbecancelledwhenthenewAuthorizedCapital2010/IIbecomeseffective.
TheManagementBoardandtheSupervisoryBoard,therefore,proposethatthefollowingresolutionbeadopted:
a) TheManagementBoardshallbeauthorizedtoincrease,upontheapprovaloftheSupervisoryBoard,thecapitalstockoftheCompanyonceorseveraltimesonorbeforeMay4,2015,byuptoatotalofEUR15,000,000byissuingnewregisterednoparvaluesharesagainstcontributionsincash(AuthorizedCapital2010/II).TheManagementBoardmay,upontheapprovaloftheSupervisoryBoard,
Agenda 11
excludeshareholders’subscriptionrightsinordertoissuethenewsharestoemployeesofAllianzSEanditsGroupcompanies.TheManagementBoardshallfurtherbeauthorized,upontheapprovaloftheSupervisoryBoard,toexcludefractionalamountsfromtheshareholders’subscriptionright.
TheManagementBoardshallbeauthorized,upontheapprovaloftheSupervisoryBoard,todeterminetheadditionalrightsofthesharesandtheconditionsoftheirissue.
b) §2(4)oftheStatutesshallbeamendedasfollows:
“2.4TheManagementBoardisauthorizedtoincrease,upontheapprovaloftheSupervisoryBoard,thecapitalstockoftheCompanyonceorseveraltimesonorbeforeMay4,2015,byuptoatotalofEUR15,000,000byissuingnewregisterednoparvaluesharesagainstcontributionsincash(AuthorizedCapital2010/II).TheManagementBoardmay,upontheapprovaloftheSupervisoryBoard,excludeshareholders’subscriptionrightsinordertoissuethenewsharestoemployeesofAllianzSEanditsGroupcompanies.TheManagementBoardshallfurtherbeauthorized,upontheapprovaloftheSupervisoryBoard,toexcludefractionalamountsfromtheshareholders’subscriptionright.
TheManagementBoardshallbeauthorized,upontheapprovaloftheSupervisoryBoard,todeterminetheadditionalrightsofthesharesandtheconditionsoftheirissue.”
c) TheAuthorizedCapital2006/IIpursuantto§2(4)oftheStatutes,adoptedbytheExtraordinaryGeneralMeetingonFebruary8,2006underitems1and4oftheAgenda,stillexistingintheamountofEUR5,880,296.96,shallbecancelledupontheeffectivenessofthenewAuthorizedCapital2010/II.
d) TheManagementBoardisinstructedtofiletheresolutiononthecancellationoftheAuthorizedCapital2006/IIwiththecommercialregisterinsuchamannerthatthecancellationwillonlybeenteredintothecommercialregisterifthenewAuthorizedCapital2010/IItobeadoptedpursuanttolit.a)andb)ofthisAgendaitemwillberegisteredatthesametime.TheManagementBoardshallbeauthorizedtoapplytohavetheAuthorizedCapital2010/IIregisteredinthecommercialregisterindependentlyfromanyotherresolutionsoftheAnnualGeneralMeeting.
12 Agenda
9. Approval of a new authorization to issue bonds carrying conversion and/or option rights as well as convertible participation rights, creation of a Conditional Capital 2010, cancellation of the current authorization to issue bonds carrying conversion and/or option rights, cancellation of the Conditional Capital 2006 and corresponding amendment to the StatutesByresolutionpertainingtoitem5oftheAgendafortheExtraordinaryGeneralMeetingonFebruary8,2006,theManagementBoardwasauthorized,upontheapprovaloftheSupervisoryBoard,toissuebondscarryingconversionoroptionrightsforsharesoftheCompany,ononeormoreoccasions,onorbeforeFebruary7,2011,withanominalvalueofuptoEUR10,000,000,000.Toservicethesebondscarryingconversionoroptionrights,aConditionalCapital2006amountingtoEUR250,000,000wascreated.ThisauthorizationhasnotbeenutilizeduptothedayonwhichtheinvitationtotheAnnualGeneralMeetingonMay5,2010waspublished.Duetotheexpiryofthecurrentauthorization,anewauthorizationshallbecreatedandthecurrentauthorizationshallbecancelled.Accordingly,anewconditionalcapitalshallbecreated(ConditionalCapital2010)andtheConditionalCapital2006shallbecancelledduetothefactthatthecurrentauthorizationhasnotbeenutilized.
TheManagementBoardandtheSupervisoryBoard,therefore,proposethatthefollowingresolutionbeadopted:
a) Authorizationtoissuebondscarryingconversionrights,bondscarryingoptionrightsandconvertibleparticipationrights
aa) Nominalamount,termofauthorization,numberofshares
TheManagementBoardofAllianzSEshallbeauthorized,upontheapprovaloftheSupervisoryBoard,toissuebondscarryingconversionrights,bondscarryingoptionrightsand/orconvertibleparticipationrights(hereafterjointlyreferredtoas“thebonds”)inbearerorregisteredform,onceorseveraltimesonorbeforeMay4,2015,withanominalamountofuptoEUR10,000,000,000withorwithoutdefinitematurity,andtogranttheholdersofthebondsconversionoroptionrightsforthesharesoftheCompany
Agenda 13
inaproportionateamountofthecapitalstockofuptoEUR250,000,000accordingtothetermsandconditionsofthebonds.Thebondsmayalsobeissuedagainstcontributionsinkind.
InadditiontoissuesinEuros,thebondsmayalsobeissuedinthelegalcurrencyofanOECDcountry–limitedtotheappropriateequivalentamountinEuros.ThebondsmayalsobeissuedbyGroupcompaniesoftheCompany;insuchcasetheManagementBoardshallbeauthorizedtoissueaguaranteeinrespectofthebondsonbehalfoftheCompanyandtogranttheholdersofsuchbondsconversionoroptionrights,asapplicable,onsharesoftheCompany.
bb) Grantingofsubscriptionrights,exclusionofsubscriptionrights
Shareholdersshallgenerallyhaveasubscriptionrighttoacquirethebonds.Thebondsmayalsobeacquiredbyoneorseveralfinancialinstitutionsprovidedthatsuchinstitutionscommittoofferthemforsubscriptiontotheshareholders.TheManagementBoardshall,however,beauthorized,upontheapprovaloftheSupervisoryBoard,toexcludesubscriptionrightsofshareholders
– forfractionalamounts;
– totheextentnecessarytograntsubscriptionrightstosharesoftheCompanytoholdersofbondscarryingconversionoroptionrightsormandatoryconvertiblebondsand/orconvertibleparticipationrightstosuchanextentassuchholderswouldbeentitledtoafterhavingexercisedtheirconversionoroptionrightsorafteranyconversionobligationshavebeenfulfilled;
– ifthebondsareissuedagainstpaymentincashandtheissuepriceisnotsignificantlylowerthanthetheoreticalmarketvalueofthebondsascalculatedusingrecognizedfinancemathematicalmethods.Thisauthorizationtoexcludesubscriptionrightsshallonlyapply,however,tobondscarryingrightstoreceivesharescorrespondingtoaproportionateamountofthecapitalstocknotexceeding10%intheaggregate,neitheronthe
14 Agenda
dateonwhichthisauthorizationtakeseffectnoronthedateofexerciseofthisauthorization.Thesaleoftreasurysharesshallbecountedtowardsthislimitationifthesaleoccursduringthetermofthisauthorizationandsubscriptionrightsareexcludedpursuantto§186(3)sentence4oftheGermanStockCorporationAct.Inaddition,sharesissuedduringthetermofthisauthorizationfromAuthorizedCapitalshallbecountedtowardsthislimitprovidedthatsubscriptionrightsareexcludedpursuantto§186(3)sentence4oftheGermanStockCorporationAct;
– ifthebondsareissuedagainstcontributionsinkind,providedthatthevalueofthecontributioninkindisappropriateinrelationtothemarketvalueofthebondsascalculatedpursuanttotheprecedingparagraph.
Thesumtotalofshareswhicharetobeissuedinconnectionwithbonds,whichinaccordancewiththisauthorizationhadbeenissuedsubjecttotheexclusionofthesubscriptionright,shallnotexceedaproportionateamountofthecapitalstockofEUR232,396,800(equivalentto20%ofthecurrentcapitalstock).SuchsharesshallcounttowardsthislimitationwhichwereissuedduringthetermofthisauthorizationfromtheAuthorizedCapital2010/Isubjecttoexclusionofsubscriptionrights.
cc) Conversionright,conversionobligation
Ifbondscarryingconversionrightsareissued,theholderscanconverttheirbondsintoCompanysharesaccordingtothetermsandconditionsofthebonds.Theproportionateshareinthecapitalstockofthesharestobeissueduponconversionshallnotexceedthenominalvalueoftheconvertiblebondortheconvertibleparticipationright.TheexchangeratioshallbecalculatedbydividingthenominalvalueofthebondbythefixedconversionpriceforoneshareoftheCompany.Theexchangeratiomayalsobecalculatedbydividingtheissuepriceofthebond,whichmaybelowerthanitsnominalvalue,bythefixedconversionpriceforoneshareoftheCompany.Theexchangeratiomayberoundedupordowntoawholenumber;inaddition,acashpremiummaybeprovidedfor.Alsoitmaybeprovidedforthatfractionalamountsaretobecombinedand/orsettledincash.Thetermsandconditionsofthebondsmayalsoprovideforavariableexchangeratio.
Agenda 15
Thetermsandconditionsofthebondsmayalsoprovideforaconversionobligation.Insuchcase,thetermsandconditionsofthebondsmayentitletheCompanytosettleincash,eitherinpartorinwhole,anydifferencebetweenthenominalvalueoftheconvertiblebondsortheconvertibleparticipationrightandtheresultobtainedfrommultiplyingtheexchangeratioandastockmarketpriceofthesharesatthetimeofthemandatoryexchange(suchpricetobemorecloselydefinedinthetermsandconditionsofthebonds).Thestockmarketprice,inaccordancewiththecalculationdescribedintheprevioussentence,shallamounttoatleast80%oftherelevantstockmarketpricepershareforthelowerconversionpricelimit,pursuanttolit.ee)below.
dd) Optionright
Ifbondscarryingoptionrightsareissued,oneormorewarrantsshallbeattachedtoeachbond,entitlingthebearertopurchasesharesoftheCompanypursuanttothetermsandconditionsofthewarrantstobemorecloselydefinedbytheManagementBoard.Theproportionateshareinthecapitalstockofthesharestobeissuedperbondmaynotexceedthenominalvalueofthebondcarryingoptionrights.
ee) Conversion/optionprice
Theconversionoroptionprice,asapplicable,persharemustbeequaltoeitheratleast80%oftheaverageclosingpricesofsharesofAllianzSEintheXetratradingsystem(oranycomparablesuccessorsystem)overthetentradingdaysinFrankfurtamMainprecedingthedayonwhichtheManagementBoardresolvestoissuethebondsoratleast80%oftheaverageclosingpriceofAllianzSEsharesinXetratrading(oranycomparablesuccessorsystem)overthedaysonwhichthesubscriptionrightsaretradedontheFrankfurtStockExchange,exceptthelasttwotradingdaysofthesubscriptionrightstradingperiod.
Notwithstanding§9(1)oftheGermanStockCorporationAct,thetermsandconditionsofthebondsmaycontainantidilutionclausestoprovideprotectionduringtheconversionoroptionperiodagainsttheCompanyraisingitscapitalstock,issuingadditionalbondscarryingconversionor
16 Agenda
optionrightsorconvertibleparticipationrightsorgrantingorguaranteeingfurtheroptionrightswithoutgrantingtheholdersofconversionoroptionrightsthesubscriptionrightstowhichtheywouldbeentitlediftheyexercisedtheirconversionoroptionrightsoriftheconversionobligationwerefulfilled.ThetermsandconditionsmayalsoprovideforavaluepreservingadjustmentoftheconversionoroptionpriceiftheCompanyimplementsothermeasuresthatmightresultinadilutionofthevalueoftheconversionoroptionrights.Theproportionateshareinthecapitalstockofthesharestobeissuedperbondmayinnoinstanceexceedthenominalvalueofthebond.
ff ) Furtherstructuringpossibilities
Theindividualtermsandconditionsofthebondsmayprovidethattreasurysharesbegrantedinthecaseofaconversionorexerciseofoptionrights.Moreover,thetermsandconditionsmayprovidefortheCompanynottogranttoholdersofconversionoroptionrightssharesintheCompany,buttopaytheequivalentamountincash.Thetermsandconditionsofthebondsmayalsoprovideforavariablenumberofsharestobegranteduponexerciseoftheoptionorconversionrightsoruponfulfillmentoftheconversionobligations,asapplicable;orthetermsandconditionsmayprovideforavariableexchangeratio,and/orforanadjustmentoftheoptionorconversionpriceduringthetermofthebondswithinarangetobedeterminedbytheManagementBoardtoreflecttheperformanceofthesharepriceorasaresultofantidilutionclauses.
gg) Authorizationtostipulatefurthertermsandconditionsofthebonds
TheManagementBoardshallbeauthorizedtodetermine(onitsownor,ifapplicable,inagreementwiththeadministrativebodiesoftheGroupcompaniesissuingthebonds)additionaldetailsrelatedtotheissueofthebondsandthetermsandconditionsofthebonds,particularlywithrespecttointerestrate,issueprice,termanddenomination,conversionoroptionprice,andconversionoroptionperiod.
Agenda 17
b) Conditionalcapitalincrease
ThecapitalstockshallbeconditionallyincreasedbyanamountofuptoEUR250,000,000byissuingupto97,656,250newregisterednoparvalueshareswithentitlementtoshareinprofitsfromthebeginningofthefinancialyearoftheirissue(ConditionalCapital2010).Theconditionalcapitalincreaseshallenabletheissueofsharestotheholdersofbondsissuedpursuanttotheauthorizationreferredtoabove,totheextentthatsuchbondshavebeenissuedagainstpaymentincash.
Theissueofthenewsharesshallbemadeonthebasisoftheconversionoroptionpricedeterminedpursuanttotheauthorizationreferredtoabove.Theconditionalcapitalincreaseshallbecarriedoutonlytotheextentthatconversionoroptionrightsgrantedunderbondsissuedagainstcashareexercisedorthatconversionobligationsofsuchbondsarefulfilled,andtosuchextentastheconversionoroptionrightsorconversionobligationsarenotservicedthroughtreasuryshares,throughsharesfromauthorizedcapitalorthroughotherformsoffulfillment.
TheManagementBoardshallbeauthorizedtodeterminefurtherdetailsoftheconditionalcapitalincrease.
c) CancellationofthenonutilizedauthorizationofFebruary8,2006andcorrespondingcancellationofConditionalCapital2006
Theauthorizationtoissuebondscarryingconversionand/oroptionrightsresolvedbytheExtraordinaryGeneralMeetingonFebruary8,2006underAgendaitem5shallbecancelled.TheConditionalCapital2006pursuantto§2(6)oftheStatutesshallbecancelledaccordingly.Thesecancellationswillnotbecomeeffectiveuntilthenewauthorizationtoissuebondscarryingconversionand/oroptionrightsaswellasconvertibleparticipationrightspursuanttotheresolutionunderlit.a)aswellasthenewConditionalCapital2010pursuanttotheresolutionunderlit.b)hascomeintoforce.
18 Agenda
d) AmendmenttotheStatutes
aa) §2(6)oftheStatutes(ConditionalCapital2006)shallberepealedduetothecancellationoftheConditionalCapital2006.
bb) In§2(5)oftheStatutesthefollowingruleshallbeinsertedfortheConditionalCapital2010:
“2.5ThecapitalstockisconditionallyincreasedbyuptoEUR250,000,000byissuingupto97,656,250newregisterednoparvalueshareswithentitlementtoshareinprofitsfromthebeginningofthefinancialyearoftheirissue(ConditionalCapital2010).TheconditionalcapitalincreaseshallbecarriedoutonlytotheextentthatconversionoroptionrightsareexercisedbyholdersofconversionoroptionrightsattachedtobondswhichAllianzSEoritsGroupcompanieshaveissuedagainstcashpaymentsaccordingtotheresolutionoftheAnnualGeneralMeetingofMay5,2010,orthatconversionobligationsundersuchbondsarefulfilled,andonlyinsofarastheconversionoroptionrightsorconversionobligationsarenotservicedthroughtreasuryshares,throughsharesfromauthorizedcapitalorthroughotherformsoffulfillment.TheManagementBoardisauthorizedtodeterminefurtherdetailsoftheconditionalcapitalincrease.”
e) Registrationwiththecommercialregister,authorizationtoamendStatutes
ToensurethatthecancellationofthecurrentConditionalCapital2006doesnotbecomeeffectivewithoutbeingsubstitutedbythenewConditionalCapital2010pursuanttotheaboveresolution,theManagementBoardshallbeinstructedtoregisterthecancellationoftheConditionalCapital2006withthecommercialregisterinsuchawaythatthecancellationisonlyenteredifthenewConditionalCapital2010isenteredatthesametime.
TheManagementBoardshallbeauthorizedtoregistertheConditionalCapital2010inthecommercialregisterindependentlyfromanyotherresolutionsmadebytheAnnualGeneralMeeting.
Agenda 19
TheSupervisoryBoardshallbeauthorizedtomakeadjustmentstothewordingoftheStatutesinaccordancewiththerespectiveissueofsharestobesubscribedaswellasanyotheramendmentstotheStatutesinconnectiontherewiththatmerelyconcernthewording.ThesameappliesintheeventthattheauthorizationtoissuebondshasnotbeenutilizeduponexpiryofthetermofauthorizationaswellasintheeventthattheConditionalCapital2010hasnotbeenutilizeduponexpiryofthedeadlinesforexercisingconversionandoptionrightsorforfulfillingconversionobligations.
10. Authorization to acquire treasury shares for trading purposesTheauthorizationtoacquiretreasurysharesfortradingpurposespursuantto§71(1)no.7oftheGermanStockCorporationAct,adoptedbytheAnnualGeneralMeetingonApril29,2009,expiresonOctober28,2010.Thisauthorizationshallthereforeberenewed.Theauthorizationistobefora5yearterminaccordancewiththepossibilityprovidedunderthenewlaw.
TheManagementBoardandtheSupervisoryBoard,therefore,proposethatthefollowingresolutionbeadopted:
a) Domesticorforeigncreditinstitutions,withinthemeaningof§71(1)no.7oftheGermanStockCorporationAct,thataremajorityownedbyAllianzSE,shallbeauthorizedtobuyandsellsharesoftheCompanyfortradingpurposes.Thetotalnumberofsharesacquired,togetherwithothertreasurysharesheldbytheCompany(orthattheCompanyisdeemedtoholdpursuantto§§71aetseq.oftheGermanStockCorporationAct),shallatnotimeexceed10%ofthecapitalstock.
b) Basedonthisresolution,sharesshallbeacquiredonlyiftheconsiderationpaidpersharedoesnotexceedbymorethan10%,anddoesnotfallshortofbymorethan10%,theaverageoftheshareprices(closingpriceintheXetratradingsystemoranycomparablesuccessorsystem)ofAllianzSEduringthethreetradingdaysinFrankfurtamMainprecedingtheacquisitionoftheshares.
20 Agenda
c) Thetradingpositioninsharesacquiredforthispurposeshallnot,attheendofanyday,exceed5%ofthecapitalstockofAllianzSE.
d) ThisauthorizationshallbeeffectiveuntilMay4,2015.Thecurrentlyexistingauthorizationtoacquiretreasurysharesfortradingpurposes,adoptedbytheAnnualGeneralMeetingonApril29,2009,andexpiringonOctober28,2010,shallbecancelleduponthenewauthorizationbecomingeffective.
11. Authorization to acquire and utilize treasury shares for other purposesTheauthorizationtoacquiretreasurysharespursuantto§71(1)no.8GermanStockCorporationAct,adoptedbytheAnnualGeneralMeetingonApril29,2009,expiresonOctober28,2010.Thisauthorizationshallthereforeberenewed.TheproposedresolutionsetsforththepossibilitiesoftheCompanybothwithregardtothemodalitiesoftheacquisitionoftreasurysharesandtheirsubsequentuse.Thetermoftheauthorizationshallbe5yearsinaccordancewiththepossibilityprovidedunderthenewlaw.
TheManagementBoardandtheSupervisoryBoardproposethatthefollowingresolutionbeadopted:
a) AllianzSEshallbeauthorizedtoacquiretreasurysharesinanamountofupto10%ofthecurrentcapitalstockofAllianzSE;thetotalamountoftreasurysharesacquired,togetherwithothertreasurysharesheldbyAllianzSE(orsharesthattheCompanyisdeemedtoholdpursuantto§§71aetseq.GermanStockCorporationAct)mustatnotimeexceed10%ofthecapitalstock.ThisauthorizationshallnotbeusedforthepurposeoftradingintheCompany’sshares.
b) Thisauthorizationmaybeexercisedinpartorinwholeandonceorseveraltimes,topursueoneorseveralpurposesbyAllianzSEorbyothercompaniescontrolledormajorityownedbyAllianzSEorbythirdpartiesactingfortheaccountofsuchcompaniesorfortheaccountoftheCompany.ThisauthorizationshallbeeffectiveuntilMay4,2015.Theauthorizationtoacquiretreasurysharesforotherpurposes,grantedattheAnnualGeneralMeetingoftheCompanyonApril29,2009,shallbecancelleduponthisnewauthorizationcomingintoeffect.
Agenda 21
c) TheacquisitionmaybecarriedoutatthediscretionoftheManagementBoard(1)throughastockexchange,(2)throughapublictenderoffer,or(3)throughapublicexchangeofferforsharesofastockexchangelistedcompanywithinthemeaningof§3(2)oftheGermanStockCorporationAct.
(1) Ifthesharesarerepurchasedoverastockexchange,thepurchasepricepershare(excludingincidentalcosts)shallnotexceedbymorethan10%,andnotfallshortofbymorethan10%,theopeningauctionpriceonthetradingdayinFrankfurtamMainintheXetratradingsystem(oranycomparablesuccessorsystem).
(2) Ifthesharesarerepurchasedthroughapublictenderoffer,thetenderpricepershareorthehighandlowendsofthepricerange(withoutincidentalcosts)shallnotexceedbymorethan10%,andnotfallshortofbymorethan20%,theclosingpriceintheXetratradingsystem(oranycomparablesucceedingsystem)onthethirdtradingdayinFrankfurtamMainpriortothepublicannouncementofthetenderoffer.If,afterthepublicationofthepublictenderoffer,materialdeviationsintherelevantmarketpriceoccur,theofferorinvitationtotendersharescanbeadjusted.Insuchacase,thebasisofanyadjustmentwillbethestockexchangepriceonthethirdtradingdayinFrankfurtamMainpriortothepublicannouncementofanadjustment.
Thevolumecanberestricted.Iftheofferisoversubscribed,sharesmustberepurchasedonaproratabasistothetenderedshares;tothisextenttherightsofshareholderstotendertheirsharesproratatotheirparticipationquotaisexcluded.Preferentialacceptancemaybeprovidedforsmalllotsofupto100tenderedsharespershareholder.Thepublictenderoffermaystipulateadditionalconditions.
(3) IfthesharesareacquiredthroughapublictenderoffertoexchangeAllianzSEsharesforsharesofastockexchangelistedcompanywithinthemeaningof§3(2)GermanStockCorporationAct(“exchangeshares”),theexchangeratiomaybestipulatedormaybedeterminedbywayofanauction.Considerationincashmaysupplementthedeliveryofexchangesharesormaybeusedtosettlefractionalamounts.Irrespectiveofthe
22 Agenda
procedurefortheexchange,theexchangepricepershareortherelevanthighandlowendsoftheexchangepricerangeinformofoneormoreexchangesharesandcalculativefractionalamounts,includinganycashorfractionalamounts(excludingincidentalcosts),shallnotexceedbymorethan10%,andnotfallshortofbymorethan20%,therelevantvaluepershareinAllianzSE.
TherelevantvalueofthesharesofAllianzSEandoftheexchangesharesshallbedeterminedbasedontherelevantclosingpriceintheXetratradingsystem(or,ifthesharesarenottradedintheXetratradingsystem,thetradingsystemusedintheparticularmarketsegmentthatismostsimilartoXetra)onthethirdtradingdayinFrankfurtamMainpriortothepublicannouncementoftheexchangeoffer.If,afterthepublicannouncementofthepublicexchangeoffer,substantialdeviationsoftherelevantpricesoccur,theoffercanbeadjusted.InsuchacasethebasisofanyadjustmentwillbetherelevantpricesonthethirdtradingdayinFrankfurtamMainpriortothepublicannouncementofanadjustment.
Thevolumecanberestricted.Iftheofferisoversubscribed,theshareswillberepurchasedonaproratabasistotherespectivetenderedshares;tothisextenttherightofshareholderstotendertheirsharesproratatotheirparticipationquotaisexcluded.Preferentialacceptancemaybeprovidedforsmalllotsofupto100tenderedsharespershareholder.Theexchangeoffermaystipulateadditionalconditions.
d) TheManagementBoardshallbeauthorizedtousesharesoftheCompanyrepurchasedonthebasisofthisauthorizationforanylawfulpurposes,includinganyofthefollowing:
(1) ThesharescanbesoldinwaysotherthanonastockexchangeorthroughanoffertotheshareholdersiftheyaresoldforcashatapricenotsubstantiallybelowthestockexchangepriceofsharesoftheCompanyatthetimeofthesale.Thisauthorizationis,however,subjecttotherequirementthatthetotalnumberofsharessoldunderexclusionofsubscriptionrightspursuantto§186(3)sentence4GermanStockCorporationActshallnotexceed
Agenda 23
10%ofthecapitalstock,neitheratthetimeofthisauthorizationbecomingeffectivenoratthetimeofitsexercise.Allsharesmustbecountedtowardsthislimitationthatareissuedfromauthorizedcapitalduringthetermofthisauthorizationunderexclusionofsubscriptionrightspursuantto§186(3)sentence4oftheGermanStockCorporationAct.Furthermore,sharesissuedorrequiredtobeissuedtomeetobligationsarisingfrombonds(includingparticipationrights)carryingconversionoroptionrightsorconversionobligationsmustalsobecountedtowardsthislimitation,providedthatthesebondsorparticipationrightswereissuedduringthetermofthisauthorizationunderexclusionofsubscriptionrightsincorrespondingapplicationof§186(3)sentence4oftheGermanStockCorporationAct.
(2) Thesharesmaybesoldforcontributionsinkind,particularlyinconnectionwiththeacquisitionofcompaniesorinterestsincompanies.
(3) ThesharesmaybeutilizedforplacementofCompanysharesonforeignstockexchangesonwhichtheyarenotyetadmittedfortrading.Theinitialofferprice(excludingincidentalcosts)oftheseshareswhenbeingplacedonadditionalstockexchangesmaynotbemorethan5%belowtheclosingpriceintheXetratradingsystem(oranycomparablesuccessorsystem)onthelasttradingdayinFrankfurtamMainpriortothelisting.
(4) ThesharesmaybeusedtomeetobligationsunderconversionoroptionrightswhichweregrantedbytheCompanyoranyofitsGroupcompaniesinconnectionwithbondissues(includingparticipationrights),ortomeetobligationsarisingfrombondscarryingconversionobligations(orparticipationrights)issuedbytheCompanyoranyofitsGroupcompanies.
(5) Thesharesmay,uptoamaximumcorrespondingcapitalstockamountofEUR5,000,000,beofferedforpurchase,ortransferredto,employeesofAllianzSEoranyofitsGroupcompanies.
(6) Upto84,920sharesmayalsobeusedtofulfillthedeliveryobligationsinthecontextofthestockoptionplanestablishedin2005bytheformerRIUNIONEADRIATICADISICURTÀS.p.A.withcorporateseatinMilan/Italy(inthe
24 Agenda
following:RAS).ThisstockoptionplanhadbeenadaptedinthecourseofthemergerofRASintoAllianzAG(nowAllianzSE).Thebeneficiaries,uponeffectivenessofthemerger,hadreceivedintotalupto173,241stockoptionsforupto173,241AllianzSEsharesatapriceofEUR93.99perAllianzSEshare,ofwhich84,920optionsarestillexistent.ThestockoptionscanbeexercisedfromFebruary1,2008throughJanuary31,2012.Theexercisehadbeenmadesubjecttotheconditionthatinthefinancialyear2005RASreachedatleast80%ofitsplannedtargetsintermsofbothincreaseofvaluepursuanttotheEVA®concept(economicvalueadded)aswellastheannualnetincomeunderIAS.Thisconditionwasmet.EntitledtosubscriptionundertheoutstandingoptionsareexecutiveemployeesoftheformerRASwhowerenotmembersoftheboardofdirectorsofRASandwhoarenowemployedbyAllianzS.p.A.,Trieste,Italy,oritsgroupcompaniesortheAllianzGroupcompanyA.C.I.F.AllianzCompagniaItalianaFinanziamentiS.P.A.,Trieste,Italy.
(7) ThesharesmayberedeemedwithoutanadditionalresolutionbytheGeneralMeetingauthorizingsuchredemptionofsharesoritsimplementation.Theredemptionwillresultinacapitaldecrease.Deviatingfromthis,theManagementBoardmaydecidethatthecapitalstockshallremainunchangedbytheredemptionandthatinsteadofthattheredemptionwillincreasetheproportionateshareoftheremainingsharesinthecapitalstockpursuantto§8(3)GermanStockCorporationAct.Inthiscase,theManagementBoardshallbeauthorizedtoadjustthenumberofsharesstatedintheStatutes.
e) Theauthorizationsunderlit.d)shallalsoapplytotheuseofsharesoftheCompanyrepurchasedonthebasisofearlierauthorizationspursuantto§71(1)no.8GermanStockCorporationActandtoanysharesrepurchasedbyGroupcompaniesorpursuantto§71dsentence5GermanStockCorporationAct.
f) Theauthorizationsunderlit.d)maybeexercisedonceorseveraltimes,inpartorinwhole,individuallyorjointly.Theauthorizationsunderlit.d),(1),(2),(4),(5)and(6)mayalsobeexercisedbycompaniescontrolledormajorityownedbyAllianzSEorbythirdpartiesactingontheaccountofsuchcompaniesorontheaccountoftheCompany.
Agenda 25
g) Theshareholders’subscriptionrightsonthesetreasurysharesshallbeexcludedinsofarasthesesharesareusedaccordingtotheaboveauthorizationunderlit.d)(1)through(6).Furthermore,theManagementBoardshallbeauthorized,intheeventofanoffertoacquiretreasurysharestoshareholders,tograntholdersofbonds(orparticipationrights)carryingconversionoroptionrightsorconversionobligationsissuedbytheCompanyoritsGroupcompaniessubscriptionrightsonthesesharestotheextenttheywouldbeentitledtheretoafterhavingexercisedtheconversionoroptionrightorafteranyconversionobligationhasbeenfulfilled;tothisextent,shareholders’subscriptionrightsforthesetreasurysharesshallbeexcluded.
12. Authorization to use derivatives in connection with the acquisition of treasury shares pursuant to § 71 (1) no. 8 of the German Stock Corporation Act ( Aktiengesetz)InadditiontotheauthorizationtoberesolvedunderAgendaitem11toacquiretreasurysharespursuantto§71(1)no.8GermanStockCorporationActtheCompanyshallalsobeauthorizedtoacquiretreasurysharesusingderivatives.
TheManagementBoardandtheSupervisoryBoardproposethatthefollowingresolutionbeadopted:
a) InadditiontotheauthorizationresolvedbytheAnnualGeneralMeetingonMay5,2009underAgendaitem11,theacquisitionoftreasurysharesmaypursuanttosaidauthorizationalsobecarriedoutby(1)sellingoptions,wherebytheCompanytakesontheobligationtoacquiresharesinAllianzSEuponexercise(“putoptions”),(2)purchasingoptionsthatentitletheCompanytoacquiresharesinAllianzSEuponexercise(“calloptions”),(3)concludingpurchaseagreements,inwhichtherearemorethantwotradingdaysbetweentheconclusionoftheagreementforpurchasingAllianzSEsharesandthefulfillmentthroughthedeliveryofAllianzSEshares(“forwardpurchases”)or(4)acombinationofputandcalloptionsandforwardpurchases(allreferredtointhefollowingas“derivatives”).
b) Thetotalofputoptionssold,calloptionspurchasedandforwardpurchasesconcludedunderthisauthorizationmaybeinrelationtoamaximumnumberofshareswhichdonotexceedatotalof5%ofthecurrentcapitalstockoftheCompany.Thetermoftheindividualderivativesisnotpermittedtoexceed
26 Agenda
18months,mustendonMay4,2015,atthelatest,andmustbechoseninsuchawaythattheacquisitionofAllianzsharesupontheexerciseorfulfillmentofthederivativeswilltakeplacenolaterthanMay4,2015.
c) ThetermsandconditionsofthederivativesshallensurethatthesharestobedeliveredtotheCompanyuponexerciseorfulfillmentofthederivativeshavepreviouslybeenacquiredinkeepingwiththelegalprincipleofequaltreatmentviathestockexchangeatthesharepriceintheXetratradingsystem(oranycomparablesuccessorsystem)effectiveatthetimetheshareswereacquired.
d) Thepricestipulatedinthederivativefortheacquisitionofoneshare(excludingincidentalcosts)incasetheoptionsareexercisedortheforwardpurchasesarefulfilledshallnotexceedbymorethan10%,andnotfallshortofbymorethan10%,theopeningauctionpriceintheXetratradingsystem(oranycomparablesuccessorsystem)onthedaythederivativecontractisconcluded.TheacquisitionpricepaidbytheCompanyforoptionsshallnotmateriallyexceed,andthesellingpricereceivedbytheCompanyforoptionsshallnotmateriallyfallshortof,thetheoreticalmarketvalueoftherelevantoptionsdeterminedaccordingtorecognizedprinciplesoffinancialmathematics,thecalculationofsuchmarketvaluetakingintoaccountinteraliatheagreedexerciseprice.TheforwardrateagreedbytheCompanyforforwardpurchasesshallnotmateriallyexceedthetheoreticalforwardratedeterminedaccordingtorecognizedprinciplesoffinancialmathematics,thecalculationofwhichtakesintoaccountinteraliathecurrentstockexchangepriceandthetermoftheforwardpurchase.
e) Iftreasurysharesareacquiredusingderivativesaccordingtotheaboverules,therightofshareholderstoconcludesuchderivativecontractswiththeCompanyisexcluded,applying§186(3)sentence4GermanStockCorporationActwiththeappropriatechanges.ShareholdersshallhavearighttotendertheirsharesintheCompanyonlyinsofarastheCompanyisobligatedvisàvistheshareholdertopurchasesharesunderthederivativetermsandconditions.Anyfurtherrighttotenderisexcluded.
Agenda 27
f) FortheuseoftreasurysharesacquiredusingderivativestherulesresolvedbytheAnnualGeneralMeetingonMay5,2010underAgendaitem11lit.d)tog)shallapplywiththeappropriatechanges.
13. Approval of control and profit transfer agreement between Allianz SE and Allianz Common Applications and Services GmbHTheManagementBoardandtheSupervisoryBoardproposethatthecontrolandprofittransferagreementbetweenAllianzSEandAllianzCommonApplicationsandServicesGmbH(inthefollowing:“ACAS”)withitsregisteredseatinMunich,GermanydatedJuly28,2009beapproved.
Theagreementhasessentiallythefollowingcontent:
• ACASmakesthemanagementofitscompanysubjecttoAllianzSE.AllianzSEshallaccordinglybeentitledtoissueinstructionstothemanagementofACASwithregardtothemanagementofthecompany.AllianzSEwillexerciseitsrighttoissueinstructionstoACASonlybyitsManagementBoard.
• ACASundertakestotransferduringthetermoftheagreementitsentireprofittoAllianzSE.Subjecttocreationorliquidationofreserves,theannualnetincome(Jahresüberschuss)whichisgeneratedwithouttakingintoaccountthetransferofprofits,reducedbyanylosscarryforwardfromtheprecedingyear,mustbetransferred.
• ACASmay,upontheapprovalofAllianzSE,establishappropriatedretainedearnings(Gewinnrücklagen)(§272(3)oftheGermanCommercialCode)fromtheannualnetincome(Jahresüberschuss)onlyifandtotheextentthatthisispermittedbyGermancommerciallawandeconomicallyjustifiedunderreasonablebusinessjudgment.Otherappropriatedretainedearnings(andereGewinnrücklagen)pursuantto§272(3)oftheGermanCommercialCodethatareestablishedduringthetermofthecontrolandprofittransferagreementmustupontherequestofAllianzSEbeliquidatedandoffsetagainstanyannualnetlossortransferredasprofit.Thetransferofamountsfromtheliquidationofotherappropriatedretainedearnings(andereGewinnrücklagen)establishedbeforecommencementoftheagreementisexcluded.
28 Agenda
• AllianzSEisobligedunder§302(1),(3)and(4)oftheGermanStockCorporationActtocompensateanyannualnetlossgeneratedduringthetermoftheagreement,totheextentthatsuchlossisnotcompensatedbytransferringfundsthathadbeenplacedduringthetermoftheagreementintotheotherappropriatedretainedearnings(andereGewinnrücklagen)establishedpursuantto§272(3)oftheGermanCommercialCode.
• TheagreementshalltakeeffectwithitsentryintothecommercialregisterofACASandshallapplyretroactivelyfortheperiodstartingJuly1,2009.ThecontrolthroughtherighttoissueinstructionsshallinanycaseonlybeeffectiveasfromtheentryoftheagreementintothecommercialregisterofACAS.
• TheagreementshallbeconcludedforafixedtermuntiltheendofJune30,2014or,ifthefinancialyearofACASischangedtothecalendaryear,untiltheendofDecember31,2014,andshallafterthatrenewwithunchangedtermsandconditionsforonecalendaryearatatime,ifitisnotterminatedbyeitherpartywithatleastsixmonths’advancenoticebeforeitsexpiry.Therighttoterminatetheagreementwithoutnoticeperiodformaterialcauseremainsunaffected.AllianzSEshallinparticularbeentitledtoterminateformaterialcauseiftheshareholdingofAllianzSEinACASisdisposedofinwholeorinpartorifAllianzSEnomoredirectlyholdsthemajorityofthevotesofthesharesinACAS.
Theshareholders’meetingofACAShasalreadyapprovedthecontrolandprofittransferagreement,andsuchapprovalhasbeennotarized.TheSupervisoryBoardofAllianzSEhasapprovedtheagreementonMarch17,2010.
Atthetimetheagreementwasconcludedandtheshareholders’meetingofACASandtheSupervisoryBoardofAllianzSEresolvedontheapproval,AllianzSEwasthesoleshareholderofACAS.Therefore,AllianzSEhastopayneithercompensationnorconsiderationtoanyoutsideshareholders.
Agenda 29
ThefollowingdocumentsareavailableontheInternetatwww.allianz.com/agm:
• thecontrolandprofittransferagreement;
• thejointreportoftheManagementBoardofAllianzSEandthemanagementofACAS;
• theAnnualFinancialStatementsandManagementReportsofAllianzSEforthepastthreefiscalyears;
• FinancialStatementsfortheabbreviatedfinancialyearofAllianzCommonApplicationsandServicesGmbHasatJune30,2009
Uponrequest,eachshareholderwillpromptlyandfreeofchargebesentacopyofthesedocuments.ThedocumentswillalsobedisplayedforinspectionattheAnnualGeneralMeetingofAllianzSE.
14. Approval of control and profit transfer agreement between Allianz SE and AZ-Argos 45 Vermögensverwaltungsgesellschaft mbHTheManagementBoardandtheSupervisoryBoardproposethatthecontrolandprofittransferagreementbetweenAllianzSEandAZArgos45VermögensverwaltungsgesellschaftmbH(inthefollowing:“AZArgos45”)withitsregisteredseatinMunich,GermanydatedDecember17,2009beapproved.
Theagreementhasessentiallythefollowingcontent:
• AZArgos45makesthemanagementofitscompanysubjecttoAllianzSE.AllianzSEshallaccordinglybeentitledtoissueinstructionstothemanagementofAZArgos45withregardtothemanagementofthecompany.AllianzSEwillexerciseitsrighttoissueinstructionstoAZArgos45onlybyitsManagementBoard.
• AZArgos45undertakestotransferduringthetermoftheagreementitsentireprofittoAllianzSE.Subjecttocreationorliquidationofreserves,theannualnetincome(Jahresüberschuss)whichisgeneratedwithouttakingintoaccountthetransferofprofits,reducedbyanylosscarryforwardfromtheprecedingyear,mustbetransferred.
30 Agenda
• AZArgos45may,upontheapprovalofAllianzSE,establishappropriatedretainedearnings(Gewinnrücklagen)(§272(3)oftheGermanCommercialCode)fromtheannualnetincome(Jahresüberschuss)onlyifandtotheextentthatthisispermittedbyGermancommerciallawandeconomicallyjustifiedunderreasonablebusinessjudgment.Otherappropriatedretainedearnings(andereGewinnrücklagen)pursuantto§272(3)oftheGermanCommercialCodethatareestablishedduringthetermofthecontrolandprofittransferagreementmustupontherequestofAllianzSEbeliquidatedandoffsetagainstanyannualnetlossortransferredasprofit.Thetransferofamountsfromtheliquidationofotherappropriatedretainedearnings(andereGewinnrücklagen)establishedbeforecommencementoftheagreementisexcluded.
• AllianzSEisobligedunder§302(1),(3)and(4)oftheGermanStockCorporationActtocompensateanyannualnetlossgeneratedduringthetermoftheagreement,totheextentthatsuchlossisnotcompensatedbytransferringfundsthathadbeenplacedduringthetermoftheagreementintotheotherappropriatedretainedearnings(andereGewinnrücklagen)establishedpursuantto§272(3)oftheGermanCommercialCode.
• TheagreementshalltakeeffectwithitsentryintothecommercialregisterofAZArgos45andshallapplyretroactivelyfortheperiodstartingJanuary1,2010.ThecontrolthroughtherighttoissueinstructionsshallinanycaseonlybeeffectiveasfromtheentryoftheagreementintothecommercialregisterofAZArgos45.
• TheagreementshallbeconcludedforafixedtermuntiltheendofDecember31,2014andshallafterthatrenewwithunchangedtermsandconditionsforonecalendaryearatatime,ifitisnotterminatedbyeitherpartywithatleastsixmonths’advancenoticebeforeitsexpiry.Therighttoterminatetheagreementwithoutnoticeperiodformaterialcauseremainsunaffected.AllianzSEshallinparticularbeentitledtoterminateformaterialcauseiftheshareholdingofAllianzSEinAZArgos45isdisposedofinwholeorinpartorifAllianzSEnomoredirectlyholdsthemajorityofthevotesofthesharesinAZArgos45.
Theshareholders’meetingofAZArgos45hasalreadyapprovedthecontrolandprofittransferagreement,andsuchapprovalhasbeennotarized.TheSupervisoryBoardofAllianzSEhasapprovedtheagreementonMarch17,2010.
Agenda 31
Atthetimetheagreementwasconcludedandtheshareholders’meetingofAZArgos45andtheSupervisoryBoardofAllianzSEresolvedontheapproval,AllianzSEwasthesoleshareholderofAZArgos45.Therefore,AllianzSEhastopayneithercompensationnorconsiderationtoanyoutsideshareholders.
ThefollowingdocumentsareavailableontheInternetatwww.allianz.com/agm:
• thecontrolandprofittransferagreement;
• thejointreportoftheManagementBoardofAllianzSEandthemanagementofAZArgos45;
• theAnnualFinancialStatementsandManagementReportsofAllianzSEforthepastthreefiscalyears;
• FinancialStatementsfortheabbreviatedfinancialyearofAZArgos45VermögensverwaltungsgesellschaftmbHasatDecember31,2007aswellasAnnualFinancialStatementsofAZArgos45VermögensverwaltungsgesellschaftmbHforfiscal2008and2009.
Uponrequest,eachshareholderwillpromptlyandfreeofchargebesentacopyofthesedocuments.ThedocumentswillalsobedisplayedforinspectionattheAnnualGeneralMeetingofAllianzSE.
32 Additional Information
Additional Information
Prerequisites for participating in the Annual General Meeting and exercising voting rights
Pursuantto§12(4)oftheStatutesoftheCompany,shareholdersmayparticipateintheAnnualGeneralMeetingandexercisetheirvotingrights–personallyorbyproxy–iftheysendnoticeofparticipationtotheManagementBoardoftheCompanybyWednesday, April 28, 2010atthelatest,eitherto
HauptversammlungAllianzSEc/oADEUSAktienregisterServiceGmbH20722HamburgFax: +496925627049EMail: hv[email protected]
orviatheInternetpursuanttotheprocedurelaiddownbytheCompanyat
www.allianz.com/agmservice
providedthattheseshareholdersareregisteredintheshareregister(Aktienregister)withtheirrespectiveshares.Forpurposesofdeterminingparticipationandvotingrights,thestatusoftheshareregisterasattheendofApril28,2010,shallbedecisive.
ShareholderswishingtogivenoticeofparticipationviatheInternetrequiretheirshareholdernumberandonlinepassword.ShareholderswhohavesigneduptoreceivethedocumentsfortheGeneralMeetingsviaemail,willreceivetheirshareholdernumberintheinvitationemailfortheAnnualGeneralMeeting,andwillberequiredtousethepasswordtheychosewhensigningupforemaildelivery.AllothershareholdersregisteredintheshareregisterwillreceivetheirshareholdernumberandonlinepasswordtogetherwiththeinvitationletterfortheAnnualGeneralMeetingbyordinarymail.
Afterhavinggivennoticeofparticipation,shareholdersortheirrepresentativeswillbesentanadmissiontickettotheAnnualGeneralMeeting.Shareholdersgivingnoticeofparticipationonlinehavethepossibilityofprintingouttheiradmissionticket
33 Additional Information
themselves.Unlikethenoticeofparticipation,theadmissionticketisnotaprerequisiteforparticipationbutmerelyservestosimplifyadmissioncontroltotheAnnualGeneralMeeting.
Creditinstitutionsthatareregisteredintheshareregistermayonlyexercisevotingrightsforsharestheydonotowniftheyareauthorizedtodosobytheshareholderconcerned.
ApplicationsforregistrationoftransfersintheshareregisterreceivedbytheCompanyaftertheendofApril28,2010anduptotheendoftheAnnualGeneralMeetingonMay5,2010,willonlybeenteredwitheffectaftertheAnnualGeneralMeetingonMay5,2010.
HoldersofAmericanDepositaryShares(ADS)willbeprovidedwithproxydocumentsbyJPMorganChaseBank(depositary).
NoticesofparticipationintheAnnualGeneralMeetingdonotresultinsharesbeingblockedfromtrading,i.e.shareholderscancontinuetodisposeoftheirsharesfreelyaftergivingnoticeofparticipation.
Procedure for voting by proxy
Shareholdersregisteredintheshareregistercanopttohavetheirvotingrightsexercisedbyarepresentative,suchasacreditinstitutionorshareholderassociation,attheAnnualGeneralMeeting.Here,too,shareholdersortheirrepresentativesmustensurethattimelynoticeofparticipationisgiven.
Proxies,theirrevocationandevidenceofproxytotheCompanymustbesubmittedintextformorissuedundertheInternetaddresswww.allianz.com/agmservice.Inderogationoftheaforesaid,ifcreditinstitutions,shareholderassociationsorotherpersonsstatedunder§135(8)GermanStockCorporationActarebeingauthorized,theformoftheproxyisgovernedbytherespectiveoffertoexercisethevotingrights.
Proxies,theirrevocationandevidenceofproxytotheCompanycanbesubmittedtotheCompanyatthefollowingaddress:
34 Additional Information
HauptversammlungAllianzSEc/oADEUSAktienregisterServiceGmbH20722HamburgFax: +496925627049EMail: hv[email protected]
or,pursuanttotheprocedureslaiddownbytheCompany,viatheInternetat
www.allianz.com/agmservice.
Asaspecialservice,wealsoofferourshareholderstheoptiontoauthorizepersonsappointedbytheCompanytovoteontheirbehalfattheAnnualGeneralMeeting.ThesepersonscanbeauthorizedintextformorviatheInternetatwww.allianz.com/agmservice.Theywillvotesolelyonthebasisoftheinstructionsgivenbytheshareholder.IfaseparatevoteistobeheldonanitemoftheAgenda,theinstructiongivenonthisitemwillapplyaccordinglytoallsubitems.PleasenotethattheseappointedrepresentativeswillnotacceptinstructionstorequesttospeakortoraiseobjectionsagainstresolutionsoftheAnnualGeneralMeetingortoaskquestionsortosubmitshareholderproposals.
ThosecreditinstitutionsorshareholderassociationsparticipatingintheonlineservicecanalsobegrantedproxyviatheInternet,pursuanttotheprocedureslaiddownbytheCompany,atwww.allianz.com/agmservice.
Shareholderswho,viatheInternet,wishtograntproxytorepresentativesappointedbytheCompanyortocreditinstitutionsandshareholderassociationsparticipatingintheonlineservicewillrequiretheirshareholdernumberandonlinepassword.
Procedure for absentee voting
ShareholdersregisteredintheshareregistercanexercisetheirvotingrightsattheAnnualGeneralMeetingbywayofanabsenteevote(Briefwahl),withoutattendingtheAnnualGeneralMeeting.
35 Additional Information
Pursuantto§12(4)oftheCompany’sStatutes,shareholdersareentitledtoexercisetheirvotingrightsbyabsenteevote–eitherpersonallyorbyproxy–iftheysendnoticeofparticipationtotheManagementBoardoftheCompanybyWednesday, April 28, 2010atthelatest,eithertotheaboveaddressorviatheInternet,pursuanttotheprocedureslaiddownbytheCompany,atwww.allianz.com/agmservice,providedthattheseshareholdersareregisteredintheshareregister(Aktienregister)withtheirrespectiveshares.Forpurposesofexercisingthevotingrightsthroughabsenteevote,thestatusoftheshareregisterasattheendofApril28,2010,shallbedecisive.
AbsenteevotescanbesenttotheCompanyeitherinwritingatthefollowingaddress:
HauptversammlungAllianzSEc/oADEUSAktienregisterServiceGmbH20722Hamburg
or,pursuanttotheprocedurelaiddownbytheCompany,at
www.allianz.com/agmservice.
ShareholderswishingtoexercisetheirvotingrightsattheAnnualGeneralMeetingbyonlineabsenteevoting,pursuanttotheprocedurelaiddownbytheCompany,atwww.allianz.com/agmservicewillrequiretheirshareholdernumberandonlinepassword.
Authorizedcreditinstitutions,shareholderassociationsorotherpersonsstatedunder§135(8)GermanStockCorporationActmayalsoavailthemselvesoftheoptionofabsenteevoting.
Forms provided by the Company for notice of participation, granting of proxy and absentee voting
FormsprovidedbytheCompanycanbeusedtosubmitnoticesofparticipation,grantproxiesand/orvotebyabsenteevoting.Shareholderswhoareregisteredintheshareregister,buthavenotappliedtoreceivetheirinvitationtotheAnnualGeneralMeetingbyemail,willreceivetherelevantformbyregularmail.Shareholderswhoareregisteredintheshareregisterandhaveappliedtoreceivetheirinvitationtothe
36 Additional Information
AnnualGeneralMeetingbyemailcanaccesstheonlineservicefortheAnnualGeneralMeetingviathelinkcontainedintheemailandsubmitnoticesofparticipation,grantproxiesand/orvotebyabsenteevotingthere.Furthermore,theformsforthenoticeofparticipation,grantingofproxyand/orabsenteevotingarealsoavailableatwww.allianz.com/agm.
Inaddition,proxycanalsobegrantedusingtheformontheadmissionticket.
Information on shareholders’ rights pursuant to Art. 56 sentence 2 and sentence 3, of Regulation (EC) no. 2157/2001 (SE-Regulation – SE-VO), § 50 (2) SE Implementation Act (SE-Ausführungsgesetz – SEAG), §§ 122 (2), 126 (1), 127, 131 (1) German Stock Corporation Act (AktG)
Request for amendments to the Agenda pursuant to Art. 56 sentence 2 and sentence 3 of the SE-Regulation, § 50 (2) SEAG, § 122 (2) German Stock Corporation Act
Shareholderswhoseholdingstogetheraccountforonetwentieth(5%)ofthecapitalstock(thiscorrespondstoEUR58,099,200or22,695,000Allianzshares)oraproratedamountofEUR500,000(corresponding to195,313Allianzshares–roundeduptothenexthighestwholenumberofshares)mayrequestthatitemsbeplacedontheAgendaandannounced.ThisquorumisrequiredpursuanttoArt.56sentence3ofRegulation(EC)No.2157/2001(hereinafter:SERegulation,SEVO)inconjunctionwith§50(2)SEAGforrequestsforamendmentstotheAgendamadebytheshareholdersofaEuropeancompany(SE).Inthisrespect,thecontentof§50(2)oftheSEImplementationAct(SEAG)correspondstothatsetoutin§122(2)GermanStockCorporationAct.
Eachnewitemmustbeaccompaniedbyastatementofreasonsoraproposedresolution.RequestsmustbeaddressedtotheCompany’sManagementBoardinwritingandbereceivedbytheCompanyatleast30dayspriortotheAnnualGeneralMeeting,i.e.by12midnightonApril4,2010.Pleasesendyourrequesttothefollowingaddress:
AllianzSEInvestorRelationsKoeniginstrasse2880802Munich
37 Additional Information
RequestsforamendmentstotheAgendathatmustbeannouncedandhavenotalreadybeenannouncedonconvocationoftheAnnualGeneralMeetingwillbepublishedintheElectronicFederalGazette(elektronischerBundesanzeiger)withoutdelayafterreceipt.Inaddition,theywillbeannouncedintheInternetatwww.allianz.com/agmandcommunicatedtotheshareholders.
Shareholder proposals and election nominations pursuant to §§ 126 (1), 127 German Stock Corporation Act
AllshareholdersareentitledtomakeproposalsthataredirectedagainstproposalsmadebytheManagementBoardand/ortheSupervisoryBoardonspecificitemsoftheAgenda,andtomakenominationsfortheelectionofaSupervisoryBoardmember(Agendaitem5)(§§126(1),127GermanStockCorporationAct).
TheCompanywillmakeshareholderproposalsaccessible,subjecttotheprovisionssetoutin§126(2)and126(3)GermanStockCorporationAct,andwillmakeshareholdernominationsaccessible,subjecttotheprovisionssetoutin§§127sentence1,126(2)and126(3)GermanStockCorporationAct,undertheprerequisitesoutlinedbelow;shareholderproposalsandelectionnominations,includingtheshareholder’sname,statementofreasonsandthemanagement’scomments,ifany,willbeaccessibleatwww.allianz.com/shareholderproposals.
ShareholderproposalsthataretobemadeaccessiblemustbedirectedagainstaproposalbytheManagementBoardand/ortheSupervisoryBoardandaddressaspecificitemoftheAgenda.ShareholdernominationsthataretobemadeaccessiblemustrelatetotheelectionofaSupervisoryBoardmember(Agendaitem5).
ShareholderproposalsandnominationsthataretobemadeaccessiblemustonlybesenttotheCompanyatthefollowingaddress.Proposalsandnominationssentelsewherecannotbeconsidered.
AllianzSEInvestorRelationsKoeniginstrasse2880802MunichEMail: [email protected]: +498938003899
38 Additional Information
Shareholderproposalstobemadeaccessiblemuststatereasons,shareholdernominationsneednotstatereasons.
Shareholderproposalsandnominationstobemadeaccessiblemustbereceivedbyusby12midnightonApril20,2010.
TheCompanyhastherighttooptnottomakeaproposalanditsreasons,oranelectionnomination,accessibleifoneoftheexclusionssetoutin§126(2)GermanStockCorporationActapplies.Theexclusionswithinthemeaningof§126(2)GermanStockCorporationActrelatetoproposalsthatareagainstthelaw,proposalsthatviolatetheStatutesandproposalsthatarelegallyabusive,andalsoapplyaccordinglyforelectionproposals(§127sentence1,§126(2)GermanStockCorporationAct).Furthermore,pursuant§127sentence3GermanStockCorporationAct,nominationsfortheelectionofaSupervisoryBoardmemberwillonlybemadeaccessibleif,pursuantto§124(3)sentence3GermanStockCorporationAct,theycontainthename,theoccupationandtheplaceofresidenceoftheindividualnominatedand,pursuantto§125(1)sentence5GermanStockCorporationAct,containtheadditionalinformationontheindividual’smembershipofothersupervisoryboardstobeformedbylaw.
Shareholders’ right to be informed pursuant to § 131 (1) German Stock Corporation Act
Pursuantto§131(1)GermanStockCorporationAct(GermanStockCorporationAct)attheAnnualGeneralMeetingtheManagementBoardshallinformanyshareholders,onrequest,abouttheCompany’saffairs,insofarasthisisnecessaryfortheproperassessmentofthesubjectmatteroftheAgenda.TheobligationtoprovideinformationshallextendtoAllianzSE’slegalandbusinessrelationswithitsassociatedenterprises,aswellastothesituationoftheAllianzconsolidatedgroupandtheenterprisesincludedintheconsolidatedfinancialstatements.
TheManagementBoardisentitled,incertaincasessetoutin§131(3)GermanStockCorporationAct,torefusetoprovideinformation.Furthermore,pursuantto§131(2)sentence2GermanStockCorporationActinconjunctionwith§13(3)sentences3and4oftheStatutesofAllianzSE,theChairmanoftheAnnualGeneralMeetingisentitledtoimposeappropriatetimelimitsontheshareholder’srighttoaskquestionsandspeak.
39 Additional Information
Additional explanations
Additionalexplanationsonshareholders’rightspursuanttoArt.56sentence2andsentence3SERegulation,§50(2)SEAG,§§122(2),126(1),127,131(1)GermanStockCorporationActcanbefoundatwww.allianz.com/agm.
Web site where information pursuant to § 124 a German Stock Corporation Act can be accessed
Informationpursuantto§124aGermanStockCorporationActcanbeaccessedatwww.allianz.com/agm.
Limitations set forth in the Statutes on registering shares belonging to others in the share register in one’s own name
Pursuanttothetermsandconditionssetoutabove,entryintheshareregisterisaprerequisiteforparticipationintheAnnualGeneralMeetingandforexercisingvotingrights.
Pursuantto§3aoftheStatutesofAllianzSE,theregistrationintheshareregisterofsharesbelongingtoanotherinone’sownnameispermissibleunderthefollowingprerequisites:
a) withoutlimitationforregistrationofupto0.2%ofthecapitalstockstatedintheStatutesperregisteredperson;
b) forregistrationofmorethan0.2%andupto3%ofthecapitalstockstatedintheStatutesperregisteredperson,registrationoftheportionofthesharesinexcessof0.2%ofthestatutorycapitalstockispermissibleaslongastheCompanyisinformedofthedatapursuantto§67(1)sentence1GermanStockCorporationActforeachofthepersonsonwhosebehalftheregisteredpersonholdsmorethan0.2%ofthestatutorycapitalstock;
c) atmost,registrationisonlypermissibleuptoamaximumof3%ofthestatutorycapitalstockperregisteredperson.
40 Additional Information
Thesespecialprovisionsshallonlyapplytotheextentthatsharesthatdonotbelongtotheregisteredpersonaretoberegisteredinthatperson’sownname.Inaddition,theyonlyapplytoregistrationsthataretobemadeformorethan0.2%ofthecapitalstockperregisteredperson.Thus,atthetimeofconvocationoftheAnnualGeneralMeeting,thisonlyaffectsregistrationsformorethan907,800sharesperregisteredperson.
Disclosurespursuanttolit.b)abovecanbesubmittedtotheCompanyat:
HauptversammlungAllianzSEc/oADEUSAktienregisterServiceGmbH20722 HamburgFax: +496925627049EMail: hv[email protected]
andmustbereceivedbytheCompanybyApril28,2010.Formsthatcanbeusedfordisclosureswillbesenttotheregisteredpersonsonrequest.
Inordernottoexceedthe3%ceilingpursuanttolit.c)above,requestsforregistertransferscanbeforwardedtotheCompanybywayoftheusualprocedure.Forpurposesofdeterminingparticipationandvotingrights,thestatusoftheshareregisterasattheendofApril28,2010,shallbedecisive.
Live webcast of the Annual General Meeting
ShareholdersofAllianzSEmaywatchtheAnnualGeneralMeetingonMay5,2010beginningat10:00a.m.initsentiretyliveontheInternet(www.allianz.com/agmservice).Shareholderscanobtainonlineaccessbyenteringtheirshareholdernumberandonlinepassword.TheopeningoftheAnnualGeneralMeetingbytheChairmanoftheAnnualGeneralMeetingandthespeechoftheChairmanoftheManagementBoardwillalsobeaccessibletoanyotherinterestedpersonliveontheInternet(www.allianz.com/agm)andwillbeavailableasareplayaftertheAnnualGeneralMeeting.Norecordingoftheentirelivewebcastwillbemade.Contrarytotheprocedureforabsenteevoting,shareholdersdonothavetheoptionofparticipatingintheAnnualGeneralMeetingwithoutbeingpresentandwithoutanauthorizedrepresentativepursuantto§118(1)sentence2GermanStockCorporationActandofexercisingallorsomeoftheirrightseitherinfull
41 Additional Information
orinpartbywayofelectroniccommunication;inparticular,thelivewebcastdoesnotenableparticipationintheAnnualGeneralMeetingwithinthemeaningof§118(1)sentence2GermanStockCorporationAct.
Publication in the Electronic Federal Gazette (elektronischer Bundesanzeiger)
TheAnnualGeneralMeetingonMay5,2010hasbeencalledbypublicationonMarch25,2010oftheforegoingAgendaintheElectronicFederalGazette(elektronischerBundesanzeiger).
Munich,March2010TheManagementBoard
42 Reports to the Annual General Meeting
Information on Agenda item 5 (details regarding the candidate for election as shareholder representative to the Supervisory Board)
Peter Denis Sutherland,residentinLondon,GreatBritainLegalexpert,formerChairmanofBPplc.,London,GreatBritainChairman,GoldmanSachsInternational,seatedinLondon,GreatBritain
Personal dataDateofbirth: April25,1946Placeofbirth: Dublin,IrelandMaritalstatus: Married
EducationReadLawatUniversityCollege,DublinandKing’sInns,Dublin
Professional history1968–1981 PracticingmemberoftheIrishBar,BarristeratlawandlaterSeniorCounselof
theIrishBar1981–02/1982 AttorneyGeneralofIrelandand12/1982–19841985–1986 EuropeanCommissionerforCompetition,SocialAffairsandEducation1986–1989 EuropeanCommissionerforCompetitionandRelationswiththeEuropeanParliament1989–1993 Chairman,AlliedIrishBanks1993–1995 DirectorGeneral,GATT,laterWTOSince1995 Chairman,GoldmanSachsInternational,London1997–2009 Chairman,BPplc.,LondonSince2006 SpecialRepresentativeoftheSecretaryGeneraloftheU.N.forMigration
andDevelopmentSince2006 ConsultantfortheAdministrationofthePatrimonyoftheHolySeeSince2008 Chairman,LondonSchoolofEconomics,London
Membership of statutory supervisory boards in Germany• AllianzSE,Munich
Membership of comparable supervisory bodies • GoldmanSachsInternational,London,GreatBritain(Chairman)• GoldmanSachsBank(Europe)Plc,Dublin,Ireland(Chairman)• BWGroupLtd.,Hamilton,Bermuda• EliLillyHoldingsLtd.,Windlesham,GreatBritain• KoçHoldingAŞ,Istanbul,Turkey• INVESTCORPS.A.,Luxembourg,Luxembourg
43 Reports to the Annual General Meeting
Report on Agenda item 7 (creation of an Authorized Capital 2010/I)
§2(3)oftheStatutesofAllianzSEprovidesforanauthorizedcapital(AuthorizedCapital2006/I).TheAuthorizedCapital2006/IwascreatedbytheExtraordinaryGeneralMeetingonFebruary8,2006andamountedtoEUR450,000,000.Afterpartialutilization,itnowamountstoEUR406,545,646.08.TheAuthorizedCapital2006/IisvalidupuntilFebruary7,2011.
TheManagementBoardandSupervisoryBoardthereforeproposetotheAnnualGeneralMeetingthatanewAuthorizedCapital2010/IamountingtoEUR550,000,000becreated.TheAuthorizedCapital2006/IshallbecancelledassoonasthenewAuthorizedCapital2010/Ibecomeseffective.
BytheincreasetoEUR550,000,000,weintendtomakebetteruseofthepossibleframeworkforcreatingauthorizedcapital,thisframeworkhavingbeenexpandedbycapitalincreases.TheproposedframeworkofEUR550,000,000accountsforapproximately47%ofthecurrentcapitalstock.
TheAuthorizedCapital2010/IisproposedbecauseAllianzSEhas,atalltimes,tobeinapositiontoactinaquickandflexiblemannerforthebenefitofitsshareholdersaccordingtochangingmarketconditions.TheManagementBoardthereforebelievesthatitisitsdutytoensurethattheCompanyalwayshastherequiredinstrumentstoraisecapital,regardlessofanycurrentandpreciseplansforutilization.Inmostcases,thetighttimeframefordecisionsregardingcapitalneedsdoesnotallowtheCompanytobedependentonthecycleoftheAnnualGeneralMeetings.Theinstrumentofauthorizedcapitalhasthereforebeencreatedbylawtoaddressthisissue.ThemostcommonpurposesforauthorizedcapitalarestrengtheningaCompany’sequitybasisandfinancingacquisitions.
IftheAuthorizedCapital2010/Iisutilizedbywayofcashcapitalincreases,shareholdersgenerallyhavesubscriptionrights.
However,upontheapprovaloftheSupervisoryBoard,itshallbepossibletoexcludeshareholders’subscriptionrightsinthecaseofacapitalincreaseagainstcontributionsincashwhentheissuepriceisnotsubstantiallylowerthanthemarketprice,asprovidedforby§186(3)sentence4oftheGermanStockCorporationAct.Thisauthorization
44 Reports to the Annual General Meeting
enablestheCompanytotakeadvantage,inaquickandflexiblemanner,ofmarketopportunitiesinthevariousareasofitsbusinessactivitiesandtomeetcapitalneedsatveryshortnoticewhennecessary.Byexcludingsubscriptionrights,theCompanyisgiventheabilitytoquicklyrespondandtoplacesharesatapriceclosetothemarketprice,i.e.withoutthediscountsusuallynecessaryinconnectionwiththeissueofsubscriptionrights.Asaresult,theCompanybenefitsfromhigherproceeds.Furthermore,newinvestorgroupsmaybeattractedbysuchissues.Whenutilizingthisauthorization,theManagementBoardwillfixthediscountaslowaspossibleinlightofthemarketconditionsexistingatthetimeoftheplacement,andinnoeventinexcessof5%ofthethenprevailingmarketpricewhenutilizingtheAuthorizedCapital2010/I.Furthermore,pursuantto§186(3)sentence4oftheGermanStockCorporationAct,thenumberofsharesissuedwithoutsubscriptionrightsmaynotexceed10%oftheexistingcapitalstock,neitheratthetimeofthisauthorizationbecomingeffective,noratthetimeofitsexercise.
Thesaleoftreasurystockwillbecountedtowardsthislimitationifthesaleoccursduringthetermofthisauthorizationandifsubscriptionrightsareexcludedpursuantto§186(3)sentence4oftheGermanStockCorporationAct.Inaddition,sharesissuedorrequiredtobeissuedwithrespecttobonds(includingparticipationrights)carryingconversionoroptionrightsorconversionobligationswillalsocounttowardsthislimit,ifthebonds(orparticipationrights)areissuedduringthetermofthisauthorizationunderexclusionofsubscriptionrightsincorrespondingapplicationof§186(3)sentence4oftheGermanStockCorporationAct.Theserequirementsensurecompliancewiththelegalprovisionsgoverningtheprotectionofshareholdersagainstdilution.Eachshareholderhas,inprinciple,theopportunitytoacquireviathestockexchangethesharesnecessarytoavoiddilutiononsubstantiallysimilarterms,giventhattheissuepriceofthenewsharesisclosetothemarketpriceandthesizeoftheplacementwithoutsubscriptionrightsisrestricted.ThisensuresthattheeconomicandvotingrightsofshareholdersareadequatelyprotectedwhensharesareissuedfromtheAuthorizedCapital2010/Iunderexclusionofsubscriptionrights,whilegrantingtheCompanyflexibilityforthebenefitofallofitsshareholders.
Furthermore,itshallbepossibletoexcludeshareholders’subscriptionrightstotheextentthisisnecessarytograntsubscriptionrightstonewsharestoholdersofbonds(includingparticipationrights)alreadyissuedortobeissuedinthefuturethatcarryconversionand/oroptionrightsoraconversionobligation,ifthetermsandconditions
45 Reports to the Annual General Meeting
ofthesebonds(orparticipationrights)provideforsuchsubscriptionrights.Suchbonds(orparticipationrights)usuallyprovideforprotectionagainstdilution.If,intheensuingperiod,shareswithsubscriptionrightsareissuedatapricethatislowerthanthecurrentstockexchangepriceoftheshare,thevalueoftheindividualshareswillbedilutedinmathematicalterms.Thismeansthat,assumingalloftheotherconditionsremainthesame,thevalueoftheoption/conversionrightsoftheholdersofbonds(orconvertibleparticipationrights)wouldbereduced.Therefore,inordertopreventthisdisadvantageintermsofvalue,asageneralrulethedilutionprotectionapplies.Thisstipulatesthat,intheeventofsubsequentshareissueswithshareholders’subscriptionrights,theholdersaregrantedadiscountontheoption/conversionprice.Alternatively,thetermsandconditionsofthebonds/convertibleparticipationrightscangenerallyalsogranttheholderssubscriptionrightstonewsharessuchasthosegrantedtotheshareholders.Theholdersarethusplacedinthesamepositionasiftheyhadalreadyexercisedtheiroptionorconversionrightsorifaconversionobligationhadbeenfulfilled.ToenabletheCompanytogranttheholderssuchsubscriptionrights,shareholders’subscriptionrightsmustbeexcluded.Theoptionofgrantingsharestotheholdersofbondsthatcarryconversionand/oroptionrightsorconvertibleparticipationrightsasopposedtoadiscountontheoptionorconversionpricemaybeamorecostefficientoptionfortheCompany.Bygrantingsharesinsteadofreducingtheoption/conversionprices,theCompanycanrealizeahigherissuepriceforthesharestobeissuedinconnectionwiththeexerciseofaconversionoroptionright.
Furthermore,theManagementBoardshallbeauthorized,upontheapprovaloftheSupervisoryBoard,toexcludeshareholders’subscriptionrightswithrespecttofractionalamounts.ThisenablestheCompanytoincreasethecapitalstockinroundnumbers.Thetechnicalhandlingofanissuewillbefacilitatedbysuchauthorization.ThefractionalsharesexcludedfromthesubscriptionrightswillbesoldinawaymostefficientfortheCompany.
Also,anauthorizationtoexcludeshareholders’subscriptionrightsshallbegiveninthecaseofacapitalincreaseagainstcontributionsinkind.ThisauthorizationenablestheManagementBoardtodeliversharesoftheCompany,asappropriateintheindividualcases,inconnectionwiththeacquisitionofcompaniesorinterestsincompanies,orotherassets.Innegotiations,theremaybesituationsinwhichconsiderationistoberequiredintheformofsharesratherthanincash.ThisoptionwillincreasetheCompany’scompetitivepositionwithrespecttopotentialacquisitiontargetsandincreaseitsflex
46 Reports to the Annual General Meeting
ibilitytotakeadvantageofopportunitiestoacquirecompanies,interestsincompaniesorotherassetswhilemaintainingitsliquiditylevels.Usingsharesasacquisitioncurrencycanalsobeadvantageouswhenoptimizingthefinancingstructure.TherecommendedauthorizationisnotdisadvantageoustotheCompanyastheissueofsharesagainstcontributionsinkindisonlypermissibleifsuchcontributionsinkindrepresentafairvaluecomparedtothedeliveredshares.
Withintheframeworkoftheexclusionofsubscriptionrightsintheeventofcapitalincreasesagainstcontributionsinkind,theManagementBoardshallfurtherbeauthorizedtoissuesharesusingtheAuthorizedCapital2010/I,insteadofprovidingcashsettlement,tosatisfy,inpartorinwhole,securitizedornonsecuritizedmonetaryclaimsagainsttheCompany.TheCompanyisthusgrantedadditionalflexibilitytosettlesuchcashclaimsbytheissueofsharesevenininstanceswhereithadinitiallyagreedtopayincash(e.g.foranacquisitiontarget).
Moreover,undertheAuthorizedCapital2010/I,itshallbepossible–undertheexclusionofshareholders’subscriptionrights–toissuesharesforthesettlementofbondscarryingconversionoroptionrights(orparticipationrights)originallyissuednotagainstcontributionsincashbutagainstcontributionsinkind.Thiscreatesthepossibilitytoalsousebondscarryingconversionandoptionrights(orconvertibleparticipationrights)asacquisitioncurrencyinconnectionwiththeacquisitionofcompanies,interestsincompanies,orotherassetsandthereforealsoincreasestheCompany’scompetitivepositionwithrespecttoattractiveacquisitiontargets.
Thetotalsharesissuedpursuanttothisauthorization,excludingsubscriptionrights,inreturnforcontributionsincashorcontributionsinkindmaynotexceedaprorataamountofthecapitalstockofEUR232,396,800(correspondsto20%ofthecurrentcapitalstock);sharesthathavebeen/areissuedduringthetermofthisauthorizationtomeetobligationsarisingfrombonds(orparticipationrights)carryingconversionoroptionrightsorfromaconversionobligationshallcounttowardsthislimitation,providedthatthebonds(orparticipationrights)wereissued,excludingsubscriptionrights,inexerciseoftheauthorizationsetoutinAgendaitem9oftheAnnualGeneralMeetingheldonMay5,2010.ThismeansthattheManagementBoardcanonlyexcludesubscriptionrightstotheextentthattheexclusionofsubscriptionrightspursuanttotheAuthorizedCapital2010/IthatistoberesolvedpursuanttoAgendaitem7andtheauthorizationontheissueofbondscarryingconversionand/oroptionrights(including
47 Reports to the Annual General Meeting
convertibleparticipationrights)toberesolvedunderAgendaitem9relates,intotal,tosharesaccountingforamaximumofEUR232,396,800ofthecapitalstock(correspondsto20%ofthecurrentcapitalstock).Thisrestrictionensuresacorrespondingupperlimitontheexclusionofsubscriptionrights,andlimitspossibledilutionfortheshareholdersexcludedfromsubscriptionrights.
TheManagementBoardwillcarefullyanalyzeineachcasewhethertoexcludeshareholders’subscriptionrightswhenraisingcapitalpursuanttothisauthorization.Thisoptionwillonlybeusedif,followingtheassessmentoftheManagementBoardandtheSupervisoryBoard,itisdeemedtobeinthebestinterestoftheCompany,and,therefore,ofitsshareholders.
TheManagementBoardwillreportontheuseoftheauthorizationateachGeneralMeetingfollowingsuchuse.
Report on Agenda item 8 (creation of an Authorized Capital 2010/II)
§2(4)oftheStatutesofAllianzSEprovidesforanauthorizedcapitalfortheissueofemployeeshares(AuthorizedCapital2006/II).AuthorizedCapital2006/II,amountingtoEUR15,000,000,wascreatedbytheExtraordinaryGeneralMeetingonFebruary8,2006.Afterpartialutilization,itnowamountstoEUR5,880,296.96.AuthorizedCapital2006/IIisvalidupuntilFebruary7,2011.
TheManagementBoardandtheSupervisoryBoardthereforeproposetotheAnnualGeneralMeetingthatanewAuthorizedCapital2010/IIamountingtoEUR15,000,000becreatedagainstcashcontributions.TheAuthorizedCapital2006/IIshallbecancelledassoonasthenewAuthorizedCapital2010/IIbecomeseffective.
TheproposedauthorizationisintendedtoenabletheCompanytooffertreasurysharestotheemployeesofAllianzSEoritsGroupcompaniesatpreferentialconditionswithouthavingtopurchasethosesharesonthestockexchange.
OfferingsharestoemployeesisinthebestinterestoftheCompanyanditsshareholders,becauseitenhancesemployeeidentificationwiththeCompanyandencouragesthemtotakeresponsibilityfortheCompany.UndertheGermanStockCorporationAct,sharesrequiredforthispurposemaybeissuedfromauthorizedcapital.Inorderto
48 Reports to the Annual General Meeting
havesufficientauthorizedcapitalfortheissueofstocktoemployeesoverthenextseveralyears,thisauthorizedcapitalshallamounttoEUR15,000,000.Thescopeofthisauthorizationhasbeendeterminedbytakingintoaccountthenumberofemployeesentitledtoparticipate,theexpectedsubscriptionresults,andthetermoftheauthorization.Tobeabletooffersharesfromauthorizedcapitaltoemployees,itisnecessarytoexcludeshareholders’subscriptionrights.Atthemoment,itisnotpossibletostatetheissueprice,becauseneitherthedatenortheamountoftherespectiveuseoftheAuthorizedCapitalhasbeenfixed.Sharessoldtoemployeesmaybeofferedwithcustomarydiscounts.Furthermore,theManagementBoardmayexcludefractionalamountsfromshareholders’subscriptionrights,upontheapprovaloftheSupervisoryBoard,tofacilitatetheimplementationofthiscapitalincrease.Employeesharesthatarenotsubscribedwillbesoldoverthestockexchange.
Report on Agenda item 9 (authorization to issue bonds carrying conversion or option rights and convertible participation rights)
TheManagementBoardiscurrentlyauthorizedbyaresolutionoftheExtraordinaryGeneralMeetingdatedFebruary8,2006regardingitem5oftheAgenda,toissuebyFebruary7,2011,bondscarryingconversionoroptionrightsand/orconversionobligationsforregisteredsharesintheCompany,onceorseveraltimes,uponapprovalbytheSupervisoryBoard.Accordingly,bondscarryingconversionand/oroptionrightscanbeissueduptoanominalvalueofEUR10,000,000,000,withorwithoutadefinedperiod,andbeequippedwithconversionoroptionrightsand/orconversionobligationsforsharesintheCompanyinaproportionateshareofthecapitalstockofuptoEUR250,000,000.Undercertaincircumstances,theManagementBoardshallbeauthorizedtoexcludesubscriptionrights,upontheapprovaloftheSupervisoryBoard.
Upuntilthepublicationofthisinvitation,theManagementBoardhasmadenouseofthisauthorization.InviewofthefactthatthecurrentauthorizationexpiresonFebruary7,2011,theManagementBoardproposesthattheAnnualGeneralMeetingapproveanewauthorizationandanewconditionalcapitalfortheissueofbondscarryingconversionrights,bondscarryingoptionrightsand/orconvertibleparticipationrights(hereinaftercollectivelyreferredtoas“bonds”).Thecurrentauthorizationtoissuebondscarryingoptionrightsand/orparticipationrightsistobecancelledasithasnotbeenutilized.Accordingly,ConditionalCapital2006,whichwascreatedforthepreviousauthorization,isalsotobecancelled.
49 Reports to the Annual General Meeting
WebelievethatsettingthemaximumissuevolumeallowedbytheauthorizationatEUR10,000,000,000againwouldbeusefulinexploitingthespectrumofcapitalmarketinstrumentsthatsecuritizeconversionoroptionrights.Theconditionalcapital,whichservestomeettheobligationsarisingfromtheexerciseofconversionandoptionrights,shallagainbeEUR250,000,000.Thisensuresthatthescopeoftheauthorizationcanbeutilizedinfull.ThenumberofsharesrequiredtosettletheobligationsarisingfromtheexerciseofoptionorconversionrightsofabondwithaspecificissuevolumegenerallydependsonthemarketpriceofAllianzsharesatthetimethebondisissued.Ifsufficientconditionalcapitalisavailable,thescopeofauthorizationforissuingbondscarryingconversionoroptionrightscanbeexploitedinfull.
TheproposedscopeoftheissuevolumeandoftheconditionalcapitalwillenableareturntothelevelresolvedbytheExtraordinaryGeneralMeetingheldon8February2006infinancialterms.
AdequatecapitalresourcesareanimportantprerequisitefortheCompany’sdevelopment.Byissuingbondscarryingconversionoroptionrights,theCompanycanmakeuseofattractivefinancingopportunities,dependingonthemarketsituation,toobtainlowinterestcapital.Theissueofconvertibleparticipationrightsallowstheinterestratestobebased,forexample,ontheCompany’scurrentdividend.TheCompanybenefitsfromtheconversionoroptionpremium.Somefinancinginstrumentscanonlybeplacedifoptionorconversionrightscanbegranted.
Shareholderswillgenerallybegivensubscriptionrightswhenbondscarryingconversionoroptionrightsandconvertibleparticipationrightsareissued.
TheManagementBoardshall,however,uponanissueagainstcashcontributions,beauthorizedincorrespondingapplicationof§186(3)sentence4oftheGermanStockCorporationActtoexcludethesesubscriptionrights,uponapprovaloftheSupervisoryBoard,iftheissuepriceofthebondsisnotsubstantiallylowerthantheirmarketvalue.Thiscanbeasuitablewaytotakeadvantageoffavorablestockmarketconditionsandtoplacebondsquicklyandflexiblyatattractiveconditionsonthemarket.Thestockmarketshavebecomemuchmorevolatile.Achievingthemostbeneficialoutcomepossiblefromanissuethereforedependsincreasinglyontheabilitytorespondtomarketdevelopmentsatshortnotice.Favorabletermsthatcorrespondasmuch
50 Reports to the Annual General Meeting
aspossibletomarketconditionscangenerallyonlybesecurediftheCompanyisnottiedtothemfortoolonganofferperiod.Inthecaseofissueswithsubscriptionrights,aconsiderablediscountisgenerallyrequiredtoguaranteethechanceoftheissuebeingsuccessfulovertheentireofferperiod.Eventhough§186(2)oftheGermanStockCorporationActallowsthesubscriptionpricetobepublished(and,assuch,thetermsandconditionsofbondscarryingconversionoroptionrights)uptothethirddaybeforetheendofthesubscriptionperiod,therestillexists,duetothevolatilityoftheequitymarkets,amarketriskoverseveraldaysleadingtodiscountswhendeterminingthetermsandconditionsofthebondand,hence,resultingintermsthatarenotclosetomarketconditions.Furthermore,whensubscriptionrightsaregranted,analternativeplacementwiththirdpartiesismoredifficultorentailsadditionaleffort,giventheuncertaintysurroundingtheexercise(subscriptionbehavior).Afterall,theCompanycannotreacttochangesinmarketconditionsatshortnoticewhengrantingsubscriptionrights,giventhedurationofthesubscriptionperiod.ThiscouldleadtotheCompanyprocuringcapitalonlessfavorableterms.
Shareholders’interestsareprotectedbythebondsbeingissuedontermsthatarenotsubstantiallylowerthanthemarketvalue.Themarketvaluemustbedeterminedusingrecognizedfinancemathematicalmethods.Whendeterminingtheprice,theManagementBoardwilltakeintoconsiderationtheprevailingconditionsonthecapitalmarketsandkeepthediscountonthemarketvalueaslowaspossible.Thiswouldresultinthecomputedvalueofthesubscriptionrightsbeingclosetozero,thus,ensuringthattheshareholderswillnotsufferanymaterialeconomicdisadvantagesfromtheexclusionofsubscriptionrights.
IftheManagementBoardcarriesoutwhatisknownasabookbuildingprocess,itcanalsosettermsinlinewiththegeneralmarketenvironmentandtherebylargelyavoiddilution.Inbookbuilding,investorsareinvitedtosubmitbidsonthebasisofprovisionalbondtermsandconditions,specifyingamongotherthingswhattheyconsidertobeafairmarketinterestrateand/orothereconomiccomponents.Whenthebookbuildingperiodends,theinvestors’bidsareevaluatedinordertodeterminethetermsthatstillremainunresolvedatthatpointintime,suchasinterestrate,accordingtosupplyanddemand,therebyensuringthatthetotalvalueofthebondissueisinkeepingwithconditionsprevailinginthemarket.Byconductingabookbuildingprocess,theManagementBoardcanensurethatsharesarenotappreciablydilutedbytheexclusionofsubscriptionrights.
51 Reports to the Annual General Meeting
Moreover,shareholderscanmaintaintheirshareofthecapitalstockoftheCompanythroughpurchasesonvirtuallythesametermsandconditionsviathestockexchange.Thisensuresreasonableprotectionoftheireconomicinterests.Theauthorizationtoexcludesubscriptionrightsasprovidedforin§186(3)sentence4oftheGermanStockCorporationActonlyappliestobondswithrightstosharesthataccountforaproportionateshareofthecapitalstockofnotmorethan10%,neitheratthetimeofthisauthorizationbecomingeffective,noratthetimeofitsexercise.
Thesaleoftreasurystockmustbecountedtowardsthislimitifitoccursduringthetermofthisauthorizationunderexclusionofsubscriptionrightsinaccordancewith§186(3)sentence4oftheGermanStockCorporationAct.Inaddition,sharesissuedfromAuthorizedCapitalunderexclusionofsubscriptionrightsinaccordancewith§186(3)sentence4oftheGermanStockCorporationActduringthetermofthisauthorizationmustbecountedtowardsthislimit.Theseprovisionsservetheinterestsofshareholdersbyminimizingthedilutionoftheirinvestmentasmuchaspossible.
Moreover,theManagementBoardshallbeauthorized,upontheapprovaloftheSupervisoryBoard,toexcludesubscriptionrightswithrespecttofractionalamounts.Suchfractionalamountscanbetheresultoftheamountoftherelevantissuingvolumeandtheneedtofixapracticableexchangeratio.Insuchcases,excludingsubscriptionrightssimplifiestheexecutionofthecapitalincrease.
Furthermore,theManagementBoardshallbegiventheauthoritytoexclude,upontheapprovaloftheSupervisoryBoard,thesubscriptionrightsoftheshareholdersinordertogranttheholdersofconversionoroptionrightsortheholdersofmandatoryconvertiblebonds(ortheholdersofmandatoryconvertibleparticipationrights)thesamesubscriptionrightswhichtheywouldbeentitledtoiftheyweretoexercisetheirconversionoroptionrights,orfollowingfulfillmentofaconversionobligation,asapplicable.Insteadofloweringtheoptionorconversionprice,thisensuresthatholdersofoptionorconversionrightsalreadyexistingatthispointintimeortheholdersofmandatoryconvertiblebonds(ortheholdersofmandatoryconvertibleparticipationrights)canbeofferedsubscriptionrightsasdilutionprotection.Providingbondswithsuchadilutionprotectionisstandardmarketpractice.
52 Reports to the Annual General Meeting
BondscanalsobeissuedagainstcontributionsinkindifthisisintheinterestoftheCompany.Insuchcases,theManagementBoardshallbeauthorizedtoexcludethesubscriptionrightsoftheshareholderswiththeapprovaloftheSupervisoryBoardprovidedthatthevalueofthecontributioninkindisappropriateinrelationtothetheoreticalmarketvalueofthebondsascalculatedusingrecognizedfinancialmathematicalmethods.Thismakesitpossibletousebondsinindividualcasesasacquisitioncurrency,forexamplewhenacquiringcompanies,interestsincompanies,orotherassets.Innegotiations,theremaybesituationsinwhichconsiderationistobeprovidedinaformotherthancash.ThisoptionwillincreasetheCompany’scompetitivepositionwithrespecttopotentialacquisitiontargetsandincreaseitsflexibilitytotakeadvantageofopportunitieswithrespecttotheacquisitionofcompanies,interestsincompanies,orotherassets,whilemaintainingitsliquiditylevels.Thiscanalsobeadvantageouswhenoptimizingthefinancingstructure.TheManagementBoardwillcarefullyexamineeachindividualcasetodecidewhethertomakeuseoftheauthorizationtoissuebonds(orparticipationrights)withconversionoroptionrightsagainstcontributionsinkindunderexclusionofsubscriptionrights.ItwillonlydosoifsuchanactionisintheinterestoftheCompanyand,thus,ofitsshareholders.
Thetotalsharestobeissuedunderbondsthatwereissued,excludingsubscriptionrights,pursuanttothisauthorization,maynotexceedaprorataamountofthecapitalstockofEUR232,396,800(correspondsto20%ofthecurrentcapitalstock).Sharesthatwereissuedduringthetermofthisauthorization,excludingsubscriptionrights,usingAuthorizedCapital2010/Ishallcounttowardsthislimitation.ThismeansthatsubscriptionrightswillbeexcludedpursuanttotheAuthorizedCapital2010/IthatistoberesolvedpursuanttoAgendaitem7andtheauthorizationontheissueofbondstoberesolvedunderAgendaitem9,attheverymostinrespectofsharesaccountingforamaximumofEUR232,396,800ofthecapitalstock(correspondsto20%ofthecurrentcapitalstock)intotal.Thisrestrictionensuresacorrespondingupperlimitontheexclusionofsubscriptionrights,andlimitspossibledilutionfortheshareholdersexcludedfromsubscriptionrights.
TheproposedconditionalcapitalisneededtomeettheobligationsarisingfromtheconversionoroptionrightsissuedwiththebondsortofulfillconversionobligationsonsharesoftheCompany,totheextentthatthebondswereissuedagainstcash.Otherformsoffulfillmentcanalsobeusedfortheconversionoroptionrights/conversionobligationsinstead,forexamplethedeliveryoftreasurysharesorsharesfromauthorizedcapital.
53 Reports to the Annual General Meeting
Theobligationsarisingfromconversionoroptionrightsfrombondsissuedagainstcontributionsinkindcannot,however,bemetbyusingconditionalcapital.Insuchcases,theCompanymustturneithertotreasurysharesortoanincreaseofcapitalstockagainstcontributionsinkind.Foranincreaseofcapitalstockagainstcontributionsinkind,theAuthorizedCapital2010/I,asproposedforresolutionunderitem7oftheAgenda,willbeavailable.Theclaimsofthebondholdersunderthebondwouldbeincludedasacontributioninkind,wherebythevaluationreviewmustalsoincludeconfirmationthattheclaimisnotimpaired,andthattheunderlyingcontributioninkindwasappropriatetotheissueprice.
TheManagementBoardwillreportontheextenttowhichithasmadeuseoftheauthorizationtoissuebondsattherespectivenextGeneralMeetingfollowingsuchissue.
Report on Agenda item 11 (authorization to acquire and utilize treasury shares for other purposes)
Agendaitem11containstheproposaltoauthorizetheCompanytorepurchaseitsownsharesinanamountofupto10%ofthecurrentcapitalstock.ThismaybedonebytheCompanyitself,byothercompaniescontrolledbytheCompany,orbythirdpartiesactingfortheaccountofsuchcompaniesortheaccountoftheCompany.TheauthorizationistoremainvaliduntilMay4,2015,thusexploitingthelegallypermittedtimeframeof5years.
Pursuantto§71(1)no.8GermanStockCorporationAct,thesharesmayalsoberepurchasedandsoldinwaysotherthanviaastockexchange.Inadditiontobuyingoverastockexchange,theCompanyshallalsobegiventhealternativetoacquiretreasurysharesbymeansofapublictenderoffertotheshareholdersoftheCompany.TheprincipleofequaltreatmentsetforthbytheGermanStockCorporationActmusttherebybeobserved.Inthisinstance,theshareholdersmaydecidehowmanysharestheywishtotenderand,ifapricerangehasbeenfixed,atwhatprice.
TheCompanyshallalsobegiventheoptiontoofferasconsiderationsharesofalistedCompanyasdefinedin§3(2)GermanStockCorporationActinsteadofcash.Pursuanttothisprovision,aCompanyisdeemedtobealistedCompanyifitssharesareadmittedtotradingonamarketwhichisregulatedandsupervisedbystaterecognized
54 Reports to the Annual General Meeting
authorities,hasregulartradingandisdirectlyorindirectlyaccessibletothegeneralpublic.Thus,thisallowstheCompanygreaterflexibilitythanifitwererestrictedtocashoffers.Atthesametime,theCompanywouldobtaintheopportunitytodisposeofitsshareholdings.Correspondingly,shareholderscouldexchangeallorpartoftheirsharesinAllianzforsharesinsuchothercompanies.
If,incaseofapublictenderofferorapublicexchangeoffer,thenumberoftenderedsharesexceedsthenumberofsharesthathadbeenintendedforpurchase,thepurchaseshallnottakeplaceintheratiooftheparticipationbutintheratioofthetenderedshares.Thisservestosimplifytheallocationprocess.Apreferredconsiderationofupto100tenderedsharespershareholdercanbeprovidedfor(minimumallocation).
Thetreasurysharesacquiredmaybeusedforanylawfulpurposes,includingthefollowing:
Theacquiredtreasurysharescanbesoldforcashinwaysotherthanthroughastockexchangewithexclusionofsubscriptionrights.Asaprerequisite,thesesharesmustbesoldagainstacashconsiderationatapricethatis,atthetimeofthesale,notsubstantiallybelowthemarketpriceofsharesoftheCompany.Thisauthorizationmakesuseoftheeasedexclusionofsubscriptionrightsprovidedforby§71(1)no.8GermanStockCorporationActincorrespondingapplicationof§186(3)sentence4GermanStockCorporationAct.Assharesmaybesoldonlyatapricenotsubstantiallybelowtheapplicablemarketprice,shareholdersaredulyprotectedagainstdilution.ThefinalsalespriceoftheCompany’streasuryshareswillbedeterminedshortlybeforethesale.TheManagementBoardwillsetanypotentialdiscountontheshares’marketpriceaslowaspossible,takingintoaccountmarketconditionsprevailingatthetimeofplacement.Thediscountonthemarketpricewillinnoeventexceed5%ofthecurrentstockmarketpriceatthetimeoftheexerciseoftheauthorization.Thisauthorizationis,however,restrictedpursuantto§186(3)sentence4GermanStockCorporationActtotheextentthatthetotalnumberofsharesissuedunderexclusionofsubscriptionrightsmustnotexceed10%ofthecapitalstockoftheCompany,neitheratthetimewhenthisauthorizationtakeseffectnoratthetimewhenitisexercised.Indeterminingthis10%limit,allsharesmustbeincludedthatareissuedfromauthorizedcapitalduringthetermofthisauthorizationunderexclusionofsubscriptionrightspursuantto§186(3)sentence4GermanStockCorporationAct.Furthermore,sharesissuedorrequiredtobe
55 Reports to the Annual General Meeting
issuedtomeetobligationsarisingfrombonds(includingparticipationrights)carryingconversionoroptionrightsorconversionobligationsmustalsobeincludedindeterminingthis10%limit,ifthesebonds(orparticipationrights)wereissuedunderexclusionofsubscriptionrightsduringthetermofthisauthorizationincorrespondingapplicationof§186(3)sentence4GermanStockCorporationAct.Thislimitation,andthefactthatthesalespricemustbebasedonthestockmarketprice,adequatelyprotectstheeconomicinterestsandvotingrightsoftheshareholders.TheshareholdershavetheoptiontomaintainthepercentageoftheirinterestintheCompanybasedonsimilartermsandconditionsbybuyingAllianzsharesoverthestockexchange.ThisauthorizationisintheinterestoftheCompanybecauseitaffordsgreaterflexibility.ItenablestheCompany,forexample,toselltreasurysharestoinstitutionalinvestorsortotargetnewinvestorgroups.
Thedisposaloftreasurysharesmayalsobemadeagainstcontributionsinkindunderexclusionofshareholders’subscriptionrights.Asaresult,theManagementBoardwouldbeabletooffertreasurysharesinappropriatecasesasconsiderationfortheacquisitionofaCompany,interestsincompanies,orotherassets.Innegotiations,itmayonoccasionbecomenecessarytoprovidesharesratherthancashasconsideration.Theabilitytooffertreasurysharesasconsiderationisadvantageouswhencompetingforattractiveacquisitiontargets.Ifmarketopportunitiesarise,italsoaffordsthenecessaryscopeforacquiringcompanies,interestsincompaniesorotherassets,whileatthesametimemaintainingliquidity.Itcanalsobeadvantageouswhenoptimizingthefinancingstructure.Whendeterminingthevaluationratios,theManagementBoardwillensurethatshareholderinterestsareadequatelyprotectedbytakingintoaccountthestockmarketpriceoftheAllianzshare.
TheauthorizationalsogivestheCompanytheopportunitytousetreasurysharesforplacementonforeignstockexchangeswhereitisnotyetlisted,thuswideningtheshareholderbaseabroadandenhancingtheattractivenessoftheAllianzshareasaninvestment.
TheExtraordinaryGeneralMeetingonFebruary8,2006,authorizedtheManagementBoardunderAgendaitem5toissuebondscarryingconversionand/oroptionrightsorconversionobligationsagainstcontributionsincashorinkindintheperiodleadinguptoFebruary7,2011.UnderAgendaitem9,theManagementBoardandthe
56 Reports to the Annual General Meeting
SupervisoryBoardrecommendtotheAnnualGeneralMeetingonMay5,2010,thattheManagementBoardonceagainbeauthorizedtoissuebonds(includingparticipationrights)carryingconversionand/oroptionrightsorconversionobligationsagainstcontributionsincashorinkind.Inordertofulfilltheresultantbondholders’rightstoobtainAllianzshares,itmayalsobereasonabletouse,inpartorinwhole,treasuryshares,ratherthanconductacapitalincrease.Therefore,thispossibilityisalsoprovidedforbytheauthorization.
TheacquiredtreasurysharesmayalsobeofferedforsaletotheemployeesoftheCompanyoritsGroupcompanies.Thismaybeaneconomicallyviablealternativetoacapitalincrease.OfferingsharestotheemployeesisintheinterestsoftheCompanyanditsshareholders,becauseitenhancesemployeeidentificationwiththeCompanyandencouragesthemtotakeresponsibilityfortheCompany.Fortreasurysharestobeofferedtoemployees,theshareholders’subscriptionrightswithregardtosuchsharesmustbeexcluded.Indeterminingthepricetobepaidbytheemployees,acustomarydiscountonoffersofsharestoemployeesmaybegranted.Theauthorizationalsoprovidesthepossibilitytooffersharestoemployeeswithoutconsideration;theManagementBoardwillmakeuseofthispossibilityonlytoaverylimitedextentinordertoprovidefurtherincentivesandachieveamorewidespreademployeeparticipation.
Treasurysharesmaybealsousedtosatisfyobligationstodeliversharesarisingfromtheexerciseofoptionrightsfromthestockoptionplansetupin2005bytheformerRIUNIONEADRIATICADISICURTÀS.p.A.,Milan/Italy(inthefollowing:RAS).TheformerRASwasmergedintoAllianzAG(nowAllianzSE)pursuanttothemergerplandatedDecember16,2005.Asaresultofthemerger,thestockoptionplanhadbeenadapted.ThebeneficiarieshadbeenputinthesamepositionasiftheyhadoriginallybeengivenoptionrightstopurchasesharesinAllianzSEinsteadofoptionrightstopurchaseRASordinaryshares.Thebeneficiaries,uponeffectivenessofthemerger,hadreceivedinsteadofoptionsforthepurchaseof953,000RASordinarysharesintotalupto173,241stockoptionsforthepurchaseofupto173,241AllianzSEshares,ofwhich84,920optionsarestillexisting.SubscriptionundertheoutstandingoptionsisavailabletoexecutiveemployeesoftheformerRASwhowerenotmembersoftheboardofdirectorsofRASandwhoarenowemployedbyAllianzS.p.A.,Trieste,Italy,oritsgroupcompaniesortheAllianzGroupCompanyA.C.I.F.AllianzCompagniaItalianaFinanziamentiS.P.A.,Trieste,Italy.TheexercisepriceisEUR93.99persharein
57 Reports to the Annual General Meeting
AllianzSE.ThestockoptionscanbeexercisedfromFebruary1,2008throughJanuary31,2012.Theexercisehadbeenmadesubjecttotheconditionthat,inthefiscalyear2005,RASreachedatleast80%ofitsplannedtargetsintermsofbothincreaseofvaluepursuanttotheEVA®concept(economicvalueadded),aswellastheannualnetincomeunderIAS.Thisconditionhasbeenmet.ThestockoptionschosenbyRASstaywithinthetimeframeofmorethantwoyearsfortheexerciseoftheoptionsspecifiedbytheGermanlawatthetimeofissue,andcontain,inaddition,certainbarrierswithrespecttothebusinessdevelopmentoftheCompany,aswellastheshareprice.TheauthorizationtousetreasurysharesprovidesfortheuseoftreasurysharesinordertofulfilltheobligationtosupplyAllianzsharesunderthestockoptions.
Finally,forthebenefitofholdersofbonds(includingparticipationrights)carryingconversionoroptionrightsorconversionobligations,theauthorizationallowsforthepartialexclusionofshareholders’subscriptionrightsinthecaseofasaleofsharesbyofferingthemtotheshareholders.Thisprovidesthealternativeofprovidingholdersofalreadyexistingconversionoroptionrights,ortheholdersofmandatoryconvertiblebonds,asubscriptionrightinsteadofareductionoftheconversionoroptionpriceinordertoprotectthemagainstdilution.
TheCompanymayredeemtreasurysharesacquiredonthebasisofthisauthorizationandpreviousauthorizationswithoutobtaininganotherresolutionbytheGeneralMeeting.Inprinciple,thisleadstoadecreaseinthecapitalstock.Alternatively,theManagementBoardisauthorizedtocarryouttheredemptionwithoutchangingthecapitalstockpursuantto§237(3)no.3GermanStockCorporationAct.Inthiscase,theproportionateshareinthecapitalstockoftheremainingsharespursuantto§8(3)GermanStockCorporationActisincreased.
Theaforementionedpossibilitiesofutilizingtreasurysharesalsopertaintosharesacquired(pursuantto§71(1)no.8GermanStockCorporationAct)onthebasisofauthorizationsgrantedbypreviousGeneralMeetings.ThisalsoappliestosharespurchasedbyGroupcompaniesorpursuantto§71dsentence5GermanStockCorporationAct.
TheManagementBoardwillreportontheuseoftheauthorizationatthenextGeneralMeeting.
58 Reports to the Annual General Meeting
Report on Agenda item 12 (authorization to use derivatives in connection with the acquisition of treasury shares pursuant to § 71 (1) no. 8 German Stock Corporation Act)
ApartfromthepossibilityofacquiringtreasurysharesasprovidedforunderAgendaitem11,alimiteduseofderivativesshallbepermitted.FortheCompany,itmaybeadvantageoustosellputoptionsorpurchasecalloptionsinsteadofdirectlyacquiringsharesintheCompany.Inaddition,itcanbeadvantageoustopurchasesharesbymeansofforwardpurchases.Indoingso,theManagementBoardintendstouseputandcalloptions,aswellasforwardpurchases(hereinafteralsocollectivelyreferredtoas“derivativecontracts”or“derivatives”)onlyasasupplementtoconventionalsharerepurchases.
Whensellingputoptions,theCompanygrantstheacquireroftheputoptionstherighttosellAllianzsharestotheCompanyatapricelaiddownintheputoption(exerciseprice).Asconsideration,theCompanyreceivesanoptionpremium,whichcorrespondstothevalueofthedisposalrighttakingintoaccounttheexerciseprice,thetermoftheoptionandthevolatilityoftheAllianzshare.Iftheputoptionisexercised,theoptionpremiumpaidbytheacquireroftheputoptionreducestheoverallconsiderationrenderedbytheCompanyfortheacquisitionoftheshare.ItiseconomicallyfavorabletotheoptionholdertoexercisetheputoptioniftheAllianzsharepriceatthetimeofexerciseislowerthantheexerciseprice,becausetheputoptionholdercanthensellthesharesatthehigherexerciseprice.FromtheCompany’spointofview,theadvantageofasharerepurchaseusingputoptionsisthattheexercisepriceisfixedalreadyonthedaytheoptioncontractisconcluded,whiletheliquiditydoesnotflowuntiltheexercisedate.Moreover,duetotheoptionpremiumcollected,theoverallacquisitionpriceofthesharesfortheCompanyislowerthanthesharepriceatthetimetheoptioncontractisconcluded.Iftheoptionholderdoesnotexercisetheoptionbecausethesharepriceattheexercisedateishigherthantheexerciseprice,theCompanywillnotbeabletoacquiretreasurysharesinthisway,butcanstillkeepthecollectedoptionpremium.
Ifacalloptionispurchased,theCompanyacquirestherighttopurchase,againstpaymentofanoptionpremium,apredeterminednumberofsharesatapredeterminedprice(exerciseprice)fromtheselleroftheoption,theoptionwriter.ItiseconomicallyfavorabletotheCompanytoexercisethecalloptioniftheAllianzsharepriceishigher
59 Reports to the Annual General Meeting
thantheexerciseprice,becauseitcanthenpurchasethesharesfromtheoptionwriteratthelowerexerciseprice.Inthisway,theCompanyhedgesagainstrisingshareprices.Furthermore,theCompany’sliquidityisnotaffected,sincethefixedacquisitionpriceforthesharesdoesnotneedtobepaiduntilthecalloptionsareexercised.
Inthecaseofaforwardpurchase,theCompanyagreeswiththeforwardsellertopurchasethesharesonasetfuturedate.Thepurchaseismadeaccordingtoaforwardpricethatisdeterminedwhentheforwardpurchaseisconcluded.Onthedateagreed,theCompanypaystheforwardpricetotheforwardseller,inreturntheforwardsellerdeliverstheshares.
ThetermoftheoptionsandtheforwardpurchasesmustendonMay4,2015,atthelatest,andmustbechoseninsuchwaythattheacquisitionofAllianzsharesupontheexerciseoftheoptionsandthefulfillmentofforwardpurchaseswilltakeplacenolaterthanMay4,2015.Thustheauthorizationisdesignedinprincipletoexploitthelegallypermittedtimeframeof5years,albeitwiththerestrictionthatthetermoftheindividualoptionsandforwardsalesmaynotexceed18months.Thisensuresthatobligationsresultingfromtheindividualoptiontransactionsandforwardpurchasesaresubjecttoanadequatetimelimit.Thetotalvolumeoftreasuryshareacquisitionsviaoptionsandforwardpurchasesislimitedto5%ofthecurrentcapitalstock.
TheacquisitionpricetobepaidbytheCompanyforthesharesistheexercisepricefixedintheparticularputorcalloptionortheforwardpriceagreedfortheforwardpurchase.
ThepriceofanAllianzsharetobepaidwhenputorcalloptionsareexercised(exerciseprice),orthepricetobepaidforanAllianzsharewhenaforwardpurchaseisperformed(forwardprice)maybehigherorlowerthanthemarketpriceofAllianzshareswhentheputoptionissold,thecalloptionacquiredortheforwardpurchaseconcluded.However,theexerciseorforwardprice(excludinganyincidentalcosts)maynotexceedbymorethan10%andnotfallshortofmorethan10%,thepricedeterminedforCompanysharesintheopeningauctionintheXetratradingsystem(oranycomparablesuccessorsystem)onthedaytheoptioncontractisconcludedortheforwardpurchasemade.
60 Reports to the Annual General Meeting
TheoptionpremiumagreedonbytheCompanywhensellingtheputoptionsoracquiringthecalloptionsmay,inthecaseofputoptions,notbemateriallylowerand,inthecaseofcalloptions,notbemateriallyhigherthanthetheoreticalmarketvalueoftherespectiveoptionsonthedatetheoptioncontractisconcluded.Thetheoreticalmarketvaluemustbedeterminedaccordingtorecognizedprinciplesoffinancialmathematics,withthecalculationofsuchmarketvaluetakingintoaccount,amongotherthings,theagreedexerciseprice.Thediscountonthetheoreticalmarketvaluedeterminedaccordingtorecognizedprinciplesoffinancialmathematicsincaseputoptionsaresold,ortheaddonincasecalloptionsareacquired,will,however,innoeventexceed5%ofthedeterminedtheoreticalmarketvalueoftheoptions.
Similarly,theforwardpriceagreedbytheCompanyforforwardpurchaseswillnotmateriallyexceedthetheoreticalforwardpricedeterminedaccordingtorecognizedprinciplesoffinancialmathematics,thecalculationofwhichmusttakeintoaccount,amongotherthings,thecurrentstockexchangepriceandthetermoftheforwardpurchase.
ThetermsandconditionsofthederivativesshallensurethatthesharestobedeliveredtotheCompanyuponexerciseoftheoptionsorfulfillmentofforwardpurchaseshavepreviouslybeenacquiredinkeepingwiththelegalprincipleofequaltreatmentviathestockexchangeatthesharepriceintheXetratradingsystem(oranycomparablesuccessorsystem)effectiveatthetimetheshareswereacquired.
Thedeterminationoftheoptionpremiumandtheexercisepriceorforwardpriceinthemannerdescribedaboveandtheobligationtosettleoptionsandforwardpurchasesonlywithsharesthathavepreviouslybeenacquiredinkeepingwiththelegalprincipleofequaltreatmentviathestockexchange,ruleouteconomicdisadvantagesforshareholdersasaconsequenceoftheacquisitionoftreasurysharesviaoptionsorforwardpurchases.SincetheCompanyreceivesorpaysafairmarketvalue,theshareholdersnotinvolvedinthederivativetransactionsdonotsufferanylossinvalue.Thisiscomparabletothepositionofshareholdersinthecaseofsharebuybacksviathestockexchange,whereinfactnotallshareholdersareabletosellsharestotheCompany.Boththeregulationsgoverningthestructureoftheoptionsandtheforwardpurchasesandtheregulationsgoverningthesharessuitablefordeliveryensurethatfullaccountisalsotakenoftheprincipleofequaltreatmentofshareholdersinthisformofacquisition.
61 Reports to the Annual General Meeting
ThereforeitisjustifiedthataclaimbyshareholderstoconcludesuchderivativecontractswiththeCompanyisexcluded,correspondinglyapplyingtheprovisionsof§186(3)sentence4GermanStockCorporationAct.Byexcludingsubscriptionrights,theCompany–unlikeinanoffertoallshareholderstopurchaseoptionsorconcludeforwardpurchasecontracts–isinapositiontoconcludederivativecontractsatshortnoticeandisprovidedwiththenecessaryflexibilitytoreactquicklytomarketsituations.
Ifsharesarerepurchasedusingputorcalloptionsorforwardpurchases,shareholdersshallhavearighttooffertheirsharesonlyinsofarastheCompanyisobligatedvisàvistherespectiveshareholdertopurchasetherelevantsharesundertheoptionsorforwardpurchases.Otherwise,theuseofputorcalloptionsorforwardpurchasesinrepurchasingshareswouldnotbepossible,andthustheCompanywouldnotbeabletogeneratetheassociatedbenefits.HavingcarefullyweigheduptheinterestsoftheshareholdersandtheinterestsoftheCompany,theManagementBoardconsidersthenongrantingorrestrictionoftheshareholders’rightstooffersharestobejustified,giventheadvantagesresultingfromtheuseofputorcalloptionsorforwardpurchasesfortheCompany.
TheManagementBoardwillreportontheuseoftheauthorizationatthenextGeneralMeeting.
Munich,March2010TheManagementBoard
62 Reports to the Annual General Meeting
Agenda 63
AllianzSEChairmanoftheSupervisoryBoard:Dr.HenningSchulteNoelleManagementBoard:MichaelDiekmann,Chairman;Dr.PaulAchleitner,OliverBäte,ClementB.Booth,EnricoCucchiani,Dr.JoachimFaber,Dr.ChristofMascher,JayRalph,Dr.GerhardRupprecht,Dr.WernerZedeliusRegisteredOffice:Munich,GermanyRegistrationCourt:MunichHRB164232
www.allianz.com
Allianz SE AKTB
E100
0Z0
( 0/ 1
0)