This document discusses how equity investors assess risks associated with company pension schemes and how de-risking pension schemes may affect share prices. It notes that equity analysts want to understand liability levels and risks, and that de-risking transactions like longevity swaps and buy-ins have had generally positive impacts on share prices as they reduce pension risks, while buy-outs are more expensive. Medium-term trends in accounting standards and funding deficits may further incentivize companies to de-risk pension schemes.

1. How equity investors assess pension risk Does de-risking a pension scheme affect your share price? This presentation was prepared exclusively for instructional purposes only, it is for your information only. The views expressed are the personal views of the presenter. Please refer to disclaimers at back of presentation. Europe Equity Research 9 September 2010 Pensions, Valuation and Accounting Peter Elwin AC +44 20 7155 6404 Peter.Elwin @jpmorgan.com J.P. Morgan Securities Ltd.

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