Thyssenkrupp Ag · XETR:TKA

Thyssenkrupp — Rethinking Pension Valuation, London (May 2006)

30 slides from Thyssenkrupp's conference presentation, May 15, 2006

1. Slide 1: ThyssenKrupp - May 15, 2006

   @e@e2ee eee 8 ThyssenKrupp | A May 15, 2006

2. Slide 2: ! "#$ % &' ( ) * +, - ! .. / - !

   ! "#$ % &' ( ) * +, - ! .. / - ! ..0 1 ) .+ 2 3 # 4 "#$ 2 . ( ) .. '

3. Slide 3: ' $( .6 $( .6 , + + , 7; + 7<; + #

   ' $( 5 .6 $( 5 .6 , 7 66 + 7 68 + , 7; + 7<; + # ( , (( # ( , 9( ) , ' : - . 3 ( / + (( . 9+ :

4. Slide 4: Characteristics of Internally Funded Pension Liabilities

   Rethinking Pension Valuation, London, May 15, 2006 Characteristics of Internally Funded Pension Liabilities O Internally funded pensions are funded by assets Equity Pension liability in the balance sheet a Financial to be seen as a reminder of ssets Liabilities annual cash outflows Pension Neither r

5. Slide 5: # $# % & ( ! ,*+ ) ; : ) : ( +,

   5 # $# % & ( ! ,*+ 9 ) ; : 9 ) : ( +, ) )*+ + 3 + ' (

6. Slide 6: - ( ( . / / + 9+ . :? + 9# !.# 05673

   - ( ( . / / + 9+ . :? + 7 9# !.# 05673 05,66 05264 *5782 *5702 012+ 012+ *13*+ *12+ 412+ .6 .6 .6 6 $( 5 .6 ( 9 .. ( , 7 : , . ? @ 60 = . A ( . , . ( +. , ( ( / . 5, . '. ( (

7. Slide 7: BC B@

   - ( ( / / + . '. . . + ? + 7 9# !.# 566 5 < 56; 555 56; 56 565 BC 5 6 6; 6< 686 6 B@ 5 5 656 66 66 8; 86 < 5 6 < . 6. 6 . 6. 6 . .6 6 6 6 . .6 6 5 5 .. 66 )( ( = ( $ . '. . + . ) , 3 . + '. +. ( + . ( + ? @ 50 = .

8. Slide 8: ; : ; / + . . . + ':? D 9# !.# D

   ; : ; / + . . . + 9 ':? D 9# !.# D ; F B D@ D@. 8; E E E6 6E 5 5E E E; ;E < <E 8 8E E @ 5E (( . 9 ' : . + 9 ' : ( ? @ 50 = .

9. Slide 9: < - . G ( . ( +(. + ( G ++ + ,

   < - . G ( . ( +(. + ( G ++ + , ( +. ) + H ) ) , ' ( " ( 0 ( + ( . (( ) 3 . , ( ( +( ,

10. Slide 10: # ( / + . , 9+ . : + ; ;56 *12+ 412+

    8 # ( / + . , 9+ . : + 7 ; 5 68 ;56 *12+ 412+ 612+ . 9 .6 : D@. ( ( (. .. ' 7 + 3 / + . ,

11. Slide 11: ! - ( & ( I ) .+ ( ( I < D .

    ! - ( & ( 5 I ) .+ ( ( 5 I < D . + ' . 3 ( +, ) + 3 + . + . ( ) +

12. Slide 12: ! ) .+ )( ( . . . '. 9/ .: D +7 9#

    ! ) .+ )( ( . . . '. 9/ .: D +7 9# !.# 7507* 75860 75468 7540* 75,,2 .6 .6 .6 6 .6 5 .6 )( ( E. '. 9D: '. 9+7: . ( ,12+ ,1*+

13. Slide 13: ! / + 9+ . : + @5D >4,3 322*<20 3220<28 3228<2) 322)<27 3227<,2

    ! / + 9+ . : + 7 @5D 437 466 463 430 433 >4,3 322*<20 3220<28 3228<2) 322)<27 3227<,2 32,2<,, = 32,4<,* ' (

14. Slide 14: ?& @A = " , ; + ) ; & ) - ( 6;

    6 ?& @A = 3 " , 8 ; 88 + ) 6 ; 6 5 & ) 6 6 86 - ( 8 6 6 6; )( 55 6< " . @ @8 # +) 58 6 G ( , 6 < 6 < , < <5 < <5 68 68 # ( &> ) 56 6 5 <8 5 <8 # ) 5 6 D( + ( 5 6 D( + ( 66 68 . < 6; . 8 68

15. Slide 15: ?& @ A == '. ( +. ( ) , .( ( 5D .

    5 ?& @ A == '. ( +. ( ) , .( 3 ( 5D . ( +( @ + + ( 3 , ( 5D J "" &( +( ) +. ( ( +.

16. Slide 16: 7+ &* =- & E 9D: & E&* =- &

    ?& @ A == & 7+ &* =- & E 9D: & E&* =- & 8; < < 5 ; 6 5 8 55 < 6 + ) < 5 < - ( 5 6 & ) 68 5 56 8 6 << )( 6 < 58 6 & 9 : 5 ( 96 : < 9 < : " . 9 6 : 9 : 98 : & . 8< G ( 9 , :9 &: 5 < H H . ( ? E$ , 96 : =, , ) 95< : G @( ; ; <; " + ( 9D: ( . < ( . 97 : 6 ?H . H # ( 07 +

17. Slide 17: ! B ' . @A # . ( ) + , I - !

    ! B ' . @A # . ( 3 3 ) + , 0 I - ! .. 3 ) + ( + 9< D . : I =) + K )( ( + ' + =) + .. . + ( +. 3@ ' @ , 9( 412+ A - ! .. '( ( ( ( . B,412+ . C 0 31*+

18. Slide 18: ; ! B ' . @ A : 412+ ( . ,412+ D E

    ; ! B ' . @ A : 412+ ( . ,412+ D E L 5 ( F L ' C 1 ?" ( - +

19. Slide 19: < $ ! ? ( I G +. . + , , ( +

    < $ ! ? ( I G +. . + 0 , , ( + ( 3 I ) .+ (( . + ) , ( . . (( ) 3 ( ( I # ( ) .+ . '. E. + . , ( ( +( +. ( - ! ..

20. Slide 20: Rethinking Pension Valuation, London, May 15, 2006

    Rethinking Pension Valuation, London, May 15, 2006 ThyssenKrupp

21. Slide 21: # @A + 9# !.# )577* )5632 8542, < 0572) 8520* <; ;6 5

    # @A + 7 9# !.# )577* )5632 5 6 8542, 6 < 0572) 8520* <; ;6 5 ; ; <; < ; 6 ; 85 6 $ M ( , $ / + ? 9+ : 8; 8 65 66 68 / + ?? 9+ : .6 .6 .6 6 $( 5 .6 ? @ 60 # . ?? @ 60 = .

22. Slide 22: # @ A ,53224 # 625322* (( @, ( / + . . +

    # @ A ,53224 # 625322* (( @, ( / + . . 7 66 + 7 68 + . / + 7; + 7<; + (( . , 7 << + 7; ;+ (( ( , 7 ;6 + 7 6 <+ $ . @ , 76 + 75 + G)5632 G)577*

23. Slide 23: # ,53224 # 625322* , + 7+ D 7+ D 6< ; < .

    # ,53224 # 625322* , + 7+ D 7+ D 6< ; 6 6 < 6 55 6 . ( 8 @ @ + ) <58 8 5 - ( 8 5 6 68 & ) < )( 56< 5<6 ; " . 6 ; 5 6 6 5 - << ; ;

24. Slide 24: !.# ( @A = ; # I ! # ( ( > ( K

    6 !.# ( @A = 8 ; # I ! # 0 ( ( > ( K ( E (( =# ( ) $( , 5 G ) ( &> . , ( I . 9 D D:? ( + + . +, 6 5 N 6 5 # # 625322* I . < C 9 ( .. ( : =( E ( &*- , ( ( K ( E + K H / * . ( ( +. . , , ( =( ) &> ? .. ( , 7@

25. Slide 25: I H # ( ( N :

    5 !.# ( @ A = 8 I . . ( E '. ( . < I H # 62 ( ( 9 N 6 : I ( '. ( ) + + =# 3 ( 3 ( H / 9O . ( @ K P: I "

26. Slide 26: !.# ( @ A = + E H / .6 : ; <8 ;8

    !.# ( @ A = 8 + 7 5 E H / 9 .6 : ; <8 ;8 5 Q + 8 86< 0 , 5<5 8 + , . 5 ; + + ; 6 =# 9$ ( 5E .6 : < <5 < <8 ; 9 5E : 8 ?# ( . . # ,

27. Slide 27: G + K ( K ( E

    !.# ( @ &A = 8 ( 4 5E . . ( E '. ( . < G + K ( K ( E 5E H / =# =# E + 7 / + - / + - / + / + H / )( ( 5 8 < 6 = ( 6 ; 5 6 86 5 < @ &'. ( . 9 : 9 : 9 : 9 : 9 : 9 : + K , @ ( . )( ( ; 8 6 @ + K ( 6 @ + ( + 5 ; 95: 6 @ " 673 87 48, 60* 02 43* =40

28. Slide 28: G + K ( K ( E

    ; !.# ( @&A = 8 M ( ( 4 5E . < G + K ( K ( E 5E H / =# =# E + 7 H E" H E" H / )( ( = ( 6 ; ( . )( ( 9 : &'. ( +, + 95: @5 + K ( ; @ ; " + 9 : @ " 72 80 =,4

29. Slide 29: I E 9H )

    < I ( ( (= ) ?, / E 9H ) & @G +, E* ( +: " +. 3 " +. 3 ' . , . , ( > + Balance sheet Balance sheet Company X Company Y . , Equity Equity G , ( ' Assets Financial Assets 3 ) > Debt Financial Debt + Pens. Obl. FA Pens. Obl. =( . ( ( +. actual = gross gross balance sheet ( +. 3 ?# ( +. . . B<< 1 = ' 1

30. Slide 30: - = . . . (( ( =# . ( ( . - (

    8 - = . . . (( ( 3 =# . ( ( . 3 - ( ( #; ( ( 1 I !.# # 62532201 - . ( ( + . ( ( + - + 3 @ + ,Q ( ( ( ( ( + + '. 3 @ + ( ( , - ! ..2 , ( + . ( ( + ( +(( , ) + . (. , (( (> , ( ) (. ( ) + ( . ( ( 3 @ + 3 ( .. . - ! .. , . , ( ) 3 @ + ( ) ( ( + ( +

ThyssenKrupp — Rethinking Pension Valuation, London (May 2006) on 6ix