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XYZ Pensions Dashboard

BDO Pensions
BDO Pensions

We use our Pensions Dashboard with current and prospective clients as the primary diagnostic tool for understanding the Employer - Scheme dynamic

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Status Advisers The Scheme Is [ ] to future accrual 2013 Existing Recovery Plan Payments [ ] p.a. over [ ] years Investment - Actuary - , Legal - Scheme Auditors - Company Auditors - Admin - [ ] invest return [ ] FRS17 discount rate Sufficiency 62% 56% Rate 63% Value 100%Funding Ratio The Scheme is [ ] to new members 贈'm Last Scheme valuation was as at [ ] Next valuation due as at [ ] (due by [ ]) Scheme Specific Funding Recovery Plan 2014 Scheme assets Accounting liabilities Accounting surplus / (deficit) Accounting funding ratio Transfer PPF FRS17 Scheme Swap Self- Buy-outFunding 77%63% / IAS 19 83% 10 9 8 7 6 5 4 3 2 1 0 Technical Provisions deficit EmployerCovenantVector Strong Employer Covenant Weak Employer Covenant Trustee Pull BEST ESTIMATE SCHEME FUNDING Employer Pull BUYOUTSELF SUFFICIENCY Very Strong Strong Tending to Strong Upper Moderate Moderate Lower Moderate Tending to Weak Weak Very Weak Assets - 100 200 300 400 500 600 700 800 900 1,000 15% 37% 48% 60% 30% 10% PENSION DISCLOSURES Pensioners Deferreds Equities EMPLOYER COVENANT VECTOR Value贈m 2. IDENTIFY THE SCHEME DYNAMICS 4. CALIBRATE TO THE EMPLOYER COVENANT 5. THE PENSION CONTROL CHEVRON息 ASSET PROFILE THE SEVEN DWARFS息 SCHEME FUNDING TENSION 1. POSITION 3.POWER2.PROSPECTS ? ? ? Overall ? IP IN CONTROL BUSINESS AS USUAL ECONOMIC RECOVERY PLAN INSOLVENCY INSOLVENT COMPROMISE 1 2 5 SOLVENT COMPROMISE 3 4 SECURITY FUNDING SEPARATION COMPROMISE SCHEME IN CONTROLEMPLOYER IN CONTROL EXIT CREDITOR PARTNER tPRPPFOWNER EMPLOYER IN CONTROL SCHEME CAUSES CONCERN IN CRISIS ...CATASTROPHE EMPLOYER LIQUIDATED SCHEME JUST ANOTHER OBLIGATION SCHEME FUNDING OBLIGATION BALLOONS EMPLOYER JUST ANOTHER INVESTMENT CRYSTALISE COVENANT IN ADVANCE OF INSOLVENCY SCHEME ENTERS PPF ASSESSMENT PROCESS The Employer is in controlof financing its Scheme obligations as part of its overall capital management Its not the longevity of the members but the longevity of the Employer that threatens the Scheme Treat covenant as another investment ofthe Scheme, stabilise investments in preparation for buy- out of PPF+ benefits Maximise value prior to insolvency by agreeing cash and share offer to fund a PPF compromise in accordance with the PPFs 8 tests Insolvency Practitioner seeks to maximise value for all creditors, Scheme enters PPF but may achieve PPF+ buy-out, tPR considers Moral Hazard powers Cash and other ? Bonds MEMBER PROFILE 3. IDENTIFY THE SCHEME VOLATILITY PROJECTED SURPLUS/DEFICIT Probability of being below 50% 25% 5% 1% 75% 95% 99% Funding level Value at Risk (VaR) Example output only 1. Which deficit? What is your funding target? 2. Can the Company support the projected deficits? 3. Will the Company's value be able to underwrite the projected deficits? 4. Can tPR conclude on a Viable Recovery Plan? 5. Will the PPF Drift be covered? 6. Do you have a flight plan? Do the Trustees care about 1 in 20 risk? What is the Trustees' prudent path of funding? Median path expected to reach full funding in around 5 years 1 in 20 chance there will still be a significant deficit in 10 years time 0 Fundinglevel Time Upper funding range Lower funding range Actives PPF drift 11:46 17/11/2014G:office97PENSIONSDNA documentsFlyers HandoutsXYZ Dashboard flyer.xlsx[DASHBOARD]
2013 1 2 3 Corporate Structure Top Co Owners (Legal Entity, individuals) Other UK Trade Co Banks UK Trade Co DB Pension Schemes 1. IDENTIFY THE COMPANY PROFILE 2 1 Key Issues Significant ShareholdersTop Business Risks Contingent Liabilities Unsecured debt PENSIONS ADVISORY WE ARE UNIQUELY PLACED TO PROVIDE STRATEGIC, TACTICAL AND OPERATIONAL ADVICE ON PENSIONS RELATED ISSUES WITHIN YOUR BUSINESS FRAMEWORK 6. THE PENSIONS RISK QUADRANTS "We are encouraging trustees to take an integrated approach to addressing COVENANT, INVESTMENT, and FUNDING RISKS and to be in a position to evidence how this has been done" - tPR 2014 COMPANY AGENDA TRUSTEE AGENDA 3. Other stakeholderes1. Shareholder agenda 2. Strategic direction 5. Capital structure Date: CONFIDENTIAL Copyright 息 2014 BDO LLP. All rights reserved PENSION DASHBOARD Meeting with (Moodys) (Experian) Net Assets Market cap (Group): Capital Structure 6 5 4 3 2 1 Secured Debt 2014 Credit Rating Key Financials (贈m) Foreign Trade Co XYZ Plc This publication has been carefully prepared, but it has been written in general terms and should be seen as broad guidance only. The publication cannot be relied upon to cover specific situations and you should not act, or refrain from acting, upon the information contained therein without obtaining specific professional advice. Please contact BDO LLP to discuss these matters in the context of your particular circumstances. BDO LLP, its partners, employees and agents do not accept or assume any liability or duty of care for any loss arising from any action taken or not taken by anyone in reliance on the information in this publication or for any decision based on it. BDO LLP, a UK limited liability partnership registered in England and Wales under number OC305127, is a member of BDO International Limited, a UK company limited by guarantee, and forms part of the international BDO network of independent member firms. A list of members names is open to inspection at our registered office, 55 Baker Street, London W1U 7EU. BDO LLP is authorised and regulated by the Financial Conduct Authority to conduct investment business. BDO is the brand name of the BDO network and for each of the BDO Member Firms. BDO Northern Ireland, a partnership formed in and under the laws of Northern Ireland, is licensed to operate within the international BDO network of independent member firms. Copyright 息 2014. BDO LLP. All rights reserved. www.bdo.co.uk/pensionsadvisory 6. TKU 9. Fiduciary duties8. Value for money 5. Member issues4. Accountability 7. Data quality "We had been battling with our pension scheme deficit for some time. BDO not only helped us step back and see the bigger picture but were also capable of advising on the detailed and complex surgery required to get to a healthy solution." Martin Beer, Finance Director, Uniq plc 9. Tax 4. Risk Policy 7. HR Policy 6. Financial accounting 6. Deadlines OUR DIVERSE TEAM We have assembled our team of Pensions Business Advisory experts from diverse, multi- disciplinary backgrounds. The result is a team of business people that understand pensions from many view points; as a Chairman, CEO, CFO, treasurer, HR director, non- executive director, trustee, member, employee, union representative, insurer, capital market counterparty, regulator, actuary and, overall, as a restructuring business advisor. Our team helped to shape the UK pension regulatory framework at its inception, advising the Pension Protection Fund on its initial risk- based levy and the Pensions Regulator on its original Clearance Guidance and Scheme Funding rules. Net asset add Debt & pension = EV EV : EBITDA ratio 2. Attitude to risk 3. Legal BDO ARE UNIQUELY PLACED TO PROVIDE STRATEGIC, TACTICAL AND OPERATIONAL ADVICE ON PENSIONS RELATED ISSUES WITHIN YOUR BUSINESS FRAMEWORK 1. Funding Average Salary Employees Dividend EBITDA Revenue EBIT 2014 Intercompany creditors/debtors 3 FSDs TYPEAEVENTS MULTI-EMPLOYER PPF SCHEME FUNDINGFind Value Demand Value Preserve Value Insure Value Apportion Value THE FAMOUS FIVE息 FSDs TYPEAEVENTS MULTI-EMPLOYER PPF SCHEME FUNDINGFind Value Demand Value Preserve Value Insure Value Apportion Value THE FAMOUS FIVE息 XYZ Plc in the news - - Where is the value? Participating Employers? Principal Employer? 11:46 17/11/2014G:office97PENSIONSDNA documentsFlyers HandoutsXYZ Dashboard flyer.xlsx[DASHBOARD]

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XYZ Pensions Dashboard

  • 1. Status Advisers The Scheme Is [ ] to future accrual 2013 Existing Recovery Plan Payments [ ] p.a. over [ ] years Investment - Actuary - , Legal - Scheme Auditors - Company Auditors - Admin - [ ] invest return [ ] FRS17 discount rate Sufficiency 62% 56% Rate 63% Value 100%Funding Ratio The Scheme is [ ] to new members 贈'm Last Scheme valuation was as at [ ] Next valuation due as at [ ] (due by [ ]) Scheme Specific Funding Recovery Plan 2014 Scheme assets Accounting liabilities Accounting surplus / (deficit) Accounting funding ratio Transfer PPF FRS17 Scheme Swap Self- Buy-outFunding 77%63% / IAS 19 83% 10 9 8 7 6 5 4 3 2 1 0 Technical Provisions deficit EmployerCovenantVector Strong Employer Covenant Weak Employer Covenant Trustee Pull BEST ESTIMATE SCHEME FUNDING Employer Pull BUYOUTSELF SUFFICIENCY Very Strong Strong Tending to Strong Upper Moderate Moderate Lower Moderate Tending to Weak Weak Very Weak Assets - 100 200 300 400 500 600 700 800 900 1,000 15% 37% 48% 60% 30% 10% PENSION DISCLOSURES Pensioners Deferreds Equities EMPLOYER COVENANT VECTOR Value贈m 2. IDENTIFY THE SCHEME DYNAMICS 4. CALIBRATE TO THE EMPLOYER COVENANT 5. THE PENSION CONTROL CHEVRON息 ASSET PROFILE THE SEVEN DWARFS息 SCHEME FUNDING TENSION 1. POSITION 3.POWER2.PROSPECTS ? ? ? Overall ? IP IN CONTROL BUSINESS AS USUAL ECONOMIC RECOVERY PLAN INSOLVENCY INSOLVENT COMPROMISE 1 2 5 SOLVENT COMPROMISE 3 4 SECURITY FUNDING SEPARATION COMPROMISE SCHEME IN CONTROLEMPLOYER IN CONTROL EXIT CREDITOR PARTNER tPRPPFOWNER EMPLOYER IN CONTROL SCHEME CAUSES CONCERN IN CRISIS ...CATASTROPHE EMPLOYER LIQUIDATED SCHEME JUST ANOTHER OBLIGATION SCHEME FUNDING OBLIGATION BALLOONS EMPLOYER JUST ANOTHER INVESTMENT CRYSTALISE COVENANT IN ADVANCE OF INSOLVENCY SCHEME ENTERS PPF ASSESSMENT PROCESS The Employer is in controlof financing its Scheme obligations as part of its overall capital management Its not the longevity of the members but the longevity of the Employer that threatens the Scheme Treat covenant as another investment ofthe Scheme, stabilise investments in preparation for buy- out of PPF+ benefits Maximise value prior to insolvency by agreeing cash and share offer to fund a PPF compromise in accordance with the PPFs 8 tests Insolvency Practitioner seeks to maximise value for all creditors, Scheme enters PPF but may achieve PPF+ buy-out, tPR considers Moral Hazard powers Cash and other ? Bonds MEMBER PROFILE 3. IDENTIFY THE SCHEME VOLATILITY PROJECTED SURPLUS/DEFICIT Probability of being below 50% 25% 5% 1% 75% 95% 99% Funding level Value at Risk (VaR) Example output only 1. Which deficit? What is your funding target? 2. Can the Company support the projected deficits? 3. Will the Company's value be able to underwrite the projected deficits? 4. Can tPR conclude on a Viable Recovery Plan? 5. Will the PPF Drift be covered? 6. Do you have a flight plan? Do the Trustees care about 1 in 20 risk? What is the Trustees' prudent path of funding? Median path expected to reach full funding in around 5 years 1 in 20 chance there will still be a significant deficit in 10 years time 0 Fundinglevel Time Upper funding range Lower funding range Actives PPF drift 11:46 17/11/2014G:office97PENSIONSDNA documentsFlyers HandoutsXYZ Dashboard flyer.xlsx[DASHBOARD]
  • 2. 2013 1 2 3 Corporate Structure Top Co Owners (Legal Entity, individuals) Other UK Trade Co Banks UK Trade Co DB Pension Schemes 1. IDENTIFY THE COMPANY PROFILE 2 1 Key Issues Significant ShareholdersTop Business Risks Contingent Liabilities Unsecured debt PENSIONS ADVISORY WE ARE UNIQUELY PLACED TO PROVIDE STRATEGIC, TACTICAL AND OPERATIONAL ADVICE ON PENSIONS RELATED ISSUES WITHIN YOUR BUSINESS FRAMEWORK 6. THE PENSIONS RISK QUADRANTS "We are encouraging trustees to take an integrated approach to addressing COVENANT, INVESTMENT, and FUNDING RISKS and to be in a position to evidence how this has been done" - tPR 2014 COMPANY AGENDA TRUSTEE AGENDA 3. Other stakeholderes1. Shareholder agenda 2. Strategic direction 5. Capital structure Date: CONFIDENTIAL Copyright 息 2014 BDO LLP. All rights reserved PENSION DASHBOARD Meeting with (Moodys) (Experian) Net Assets Market cap (Group): Capital Structure 6 5 4 3 2 1 Secured Debt 2014 Credit Rating Key Financials (贈m) Foreign Trade Co XYZ Plc This publication has been carefully prepared, but it has been written in general terms and should be seen as broad guidance only. The publication cannot be relied upon to cover specific situations and you should not act, or refrain from acting, upon the information contained therein without obtaining specific professional advice. Please contact BDO LLP to discuss these matters in the context of your particular circumstances. BDO LLP, its partners, employees and agents do not accept or assume any liability or duty of care for any loss arising from any action taken or not taken by anyone in reliance on the information in this publication or for any decision based on it. BDO LLP, a UK limited liability partnership registered in England and Wales under number OC305127, is a member of BDO International Limited, a UK company limited by guarantee, and forms part of the international BDO network of independent member firms. A list of members names is open to inspection at our registered office, 55 Baker Street, London W1U 7EU. BDO LLP is authorised and regulated by the Financial Conduct Authority to conduct investment business. BDO is the brand name of the BDO network and for each of the BDO Member Firms. BDO Northern Ireland, a partnership formed in and under the laws of Northern Ireland, is licensed to operate within the international BDO network of independent member firms. Copyright 息 2014. BDO LLP. All rights reserved. www.bdo.co.uk/pensionsadvisory 6. TKU 9. Fiduciary duties8. Value for money 5. Member issues4. Accountability 7. Data quality "We had been battling with our pension scheme deficit for some time. BDO not only helped us step back and see the bigger picture but were also capable of advising on the detailed and complex surgery required to get to a healthy solution." Martin Beer, Finance Director, Uniq plc 9. Tax 4. Risk Policy 7. HR Policy 6. Financial accounting 6. Deadlines OUR DIVERSE TEAM We have assembled our team of Pensions Business Advisory experts from diverse, multi- disciplinary backgrounds. The result is a team of business people that understand pensions from many view points; as a Chairman, CEO, CFO, treasurer, HR director, non- executive director, trustee, member, employee, union representative, insurer, capital market counterparty, regulator, actuary and, overall, as a restructuring business advisor. Our team helped to shape the UK pension regulatory framework at its inception, advising the Pension Protection Fund on its initial risk- based levy and the Pensions Regulator on its original Clearance Guidance and Scheme Funding rules. Net asset add Debt & pension = EV EV : EBITDA ratio 2. Attitude to risk 3. Legal BDO ARE UNIQUELY PLACED TO PROVIDE STRATEGIC, TACTICAL AND OPERATIONAL ADVICE ON PENSIONS RELATED ISSUES WITHIN YOUR BUSINESS FRAMEWORK 1. Funding Average Salary Employees Dividend EBITDA Revenue EBIT 2014 Intercompany creditors/debtors 3 FSDs TYPEAEVENTS MULTI-EMPLOYER PPF SCHEME FUNDINGFind Value Demand Value Preserve Value Insure Value Apportion Value THE FAMOUS FIVE息 FSDs TYPEAEVENTS MULTI-EMPLOYER PPF SCHEME FUNDINGFind Value Demand Value Preserve Value Insure Value Apportion Value THE FAMOUS FIVE息 XYZ Plc in the news - - Where is the value? Participating Employers? Principal Employer? 11:46 17/11/2014G:office97PENSIONSDNA documentsFlyers HandoutsXYZ Dashboard flyer.xlsx[DASHBOARD]