Calgon Carbon Corporatoion Thrift/Saving

PNC Institutional InvestmentsEducation Seminar : 

PNC Institutional InvestmentsEducation Seminar Calgon Carbon Corporation Thrift/Savings Plan

Today’s Agenda : 

1 Today’s Agenda Benefits of Participation Basic Investment Concepts- Compounding/Mutual Funds Fund Option Review Plan Provisions Questions & Answers

The Benefits of Participation : 

2 Three main benefits: 1. Investing pre-tax By contributing to a 401(k) you reduce your taxable income since contributions come out of your pay before taxes are withheld. 2. Company contributions “Free Money” Even if you do not contribute from your paycheck, the company will contribute to the Plan on your behalf. 3. A 401(k) is portable If you start making contributions to the Plan and then leave your job with your current employer, your money can travel with you from job to job. The Benefits of Participation

Benefits of Pre-Tax Savings : 

3 Benefits of Pre-Tax Savings Get $18 in benefits for only $15! Tax Savings: $156 Retirement Savings: $936

Slide 5: 

4 6% 401(k) contribution Company Contribution - $1.40 for every hour worked (Min. $750) Total Investment into 401(k) Plan per year $0 $750 $750 $936 $750 $1,686 (B) contributing (A) not contributing In this example, you’re getting $750 a year in FREE MONEY, which is 100% immediately vested. Based on $300 weekly gross income example: Get free money from your company

: 

5 Value of Compounding An introduction to Investing in a 401(k) Contributing $1,000 per year from age 21 to 30: $248,378 at age 65 Contributing $1,000 per year from age 31 to 65: $191,149 at age 65 Assumes an 8% return, compounded annually. Actual returns and principal will vary.

Slide 7: 

6 How much do YOU need to contribute?

How Much Should You Save? : 

7 How Much Should You Save? Financial Planners have a rule of thumb: You’ll need annual retirement income that equals approximately 70% - 80% of your average working year’s income to maintain a similar lifestyle in retirement. Annual Gross Income = $20,000 70% of $20,000 = $14,000 $14,000 x 20 yrs in retirement = $280,000 Overall retirement savings goal

Finding the Money : 

8 Finding the Money $2/week for 30 years $12,917? $3.50/week for 30 years $22,606? $4/week for 30 years $25,835? $5/week for 30 years $32,294? Based on 8% average annual rate of return, compounded monthly

Slide 10: 

9 Choosing your investments Now that you know why you need to join your company’s 401(k) Plan and the benefits of the Plan, the next step is choosing your investments. Your company’s 401(k) Plan offers three types of investments to choose from: Stable Value/Cash Bond/Fixed Income Stocks/Equities

What is a mutual fund? : 

10 What is a mutual fund? All of the investments in the 401(k) Plan are mutual funds. Mutual Funds: Pool investor dollars Invest in a mix of stocks, bonds and/or cash securities Are designed to pursue a stated objective Are managed by professionals Provide diversification among different industries and companies Usually have lower investment minimums than individual stocks and bonds

Risk Tolerance : 

11 Risk Tolerance Cash/Stable Value Investments Relatively conservative investment These investments are your initial deposits, plus a little interest. Over the past 60 years, the annual return has been about 3 or 4 percent. Bonds/Fixed Income Investments Moderate investment Pays back your principal, plus interest Over the past 60 years, the annual return has been a little over 5 percent. Stock/Equity Investments More aggressive investment Your return is directly related to how the company or companies perform Over the past 60 years, the annual return has been about 10 percent.

Investment Risk v. Return : 

12 Investment Risk v. Return Risk=Inflation Risk=Interest Rates Risk=Short-term Fluctuations

How do I evaluate mutual funds?– Equity Style Box : 

13 How do I evaluate mutual funds?– Equity Style Box Large Cap Mid Cap Small Cap Growth Blend Value MARKET CAP STYLE

US Equities : 

14 Large Cap Funds invest in large, established, usually well-known companies such as Exxon, Microsoft, Caterpillar or IBM. These companies have more than $10 Billion in assets. Mid Cap Funds invest in those companies that are not quite Large Cap, but may someday become one. They have assets between $2 - $10 Billion. Examples of Mid Cap companies include PetSmart, Advance AutoParts and Briggs and Stratton. Small Cap Funds invest in those companies that are relatively new, younger companies. They have less than $2 Billion in assets. Examples of Small Cap Companies include Wynn Resorts, AC Moore Arts & Crafts and Regis Hair Salons. US Equities

US Equities : 

15 US Equities Value Funds invest in companies that are trading for less than they may be worth; they are considered to be good values. For example, if the stock price is $20 per share, but the Value Fund Manager feels that the stock is worth $25 per share, then he or she may invest in it. Examples of value companies include AT&T, IBM and Coca-Cola. Growth Funds invest in companies that have excellent prospects. The Growth Fund Manager is not as concerned with prices as the Value Fund Manager, and is focused more on future earnings. Examples of growth companies include Google, Microsoft and CVS Pharmacies. Blend Funds invest in a combination of both Value and Growth companies.

Slide 17: 

16 Provide opportunity for diversification Bears extra risks such as currency fluctuation, political, and diplomatic risks International Funds

Slide 18: 

17 Management Style Box Annual Returns Top Holdings Expenses General Information Fund Objectives S&P Fund Fact Sheets XYZ Fund

Investment Options : 

18 Investment Options Stable Value-Money Market PNC Investment Contract Fund Fixed Income-Bond American Funds – Bond Fund of America R3 T. Rowe Price Short Term Bond Fund American Century GNMA Balanced American Funds – Balanced Fund of America R3 Asset Allocation American Century Strategic Allocation – Conservative American Century Strategic Allocation – Moderate* American Century Strategic Allocation – Aggressive Large Cap Growth American Funds – Growth Fund of America Large Cap Value American Century Equity Income American Funds – Washington Mutual Investors R3 Davis New York Venture Fund * Default Fund Large Cap Blend Federated Max-Cap Index Federated Capital Appreciation Mid Cap Growth Federated Mid-Cap Index BlackRock US Opportunities Portfolio Service Mid Cap Value Artisan Mid Cap Value Small Cap Growth American Century New Opportunity II Fund Small Cap Value Janus Adviser Series S Small Company Value Small Cap Blend Royce Premier International American Funds – EuroPacific Growth Fund MFS International New Discovery

Slide 20: 

19 American Century Strategic Allocation Funds Choose from Conservative, Moderate or Aggressive

How Do I Determine My Asset Allocation? : 

20 How Do I Determine My Asset Allocation?

How Do I Determine My Asset Allocation? : 

21 How Do I Determine My Asset Allocation? Conservative Moderate Aggressive

Slide 23: 

22 Voice Response Unit Customer Service Call Center www.retirementdirections.com How Can I Make Changes or Access My Account? ACCESS AVAILABLE IN BOTH ENGLISH AND SPANISH 1.800.374.4631

Plan Provisions : 

23 Plan Provisions You are eligible if you are 21 years of age or older. You may contribute between 1-50% of your compensation on a pre-tax basis, up to the IRS limit of $16,500 in 2009 (an additional $5,500 if you are over age 50). You may contribute between 2-10% of your compensation on a post-tax basis If you’d like to rollover a former plan, you may do so by completing the Rollover Receipt Form. Even if you choose not to contribute, the company will contribute to the Plan for you ($1.40 per hour worked, minimum $750). To enroll, complete the Enrollment Form & Beneficiary Form and return them to your Payroll Representative.

Plan Provisions : 

24 Plan Provisions Vesting – 100% Vested immediately Distributions – Lump sum only Death Permanent Total Disability Termination Layoff In-service Withdrawal – Post-tax and Rollover Contribution 59 ½ In-service Withdrawal – Pre-tax and Rollover Hardship Distribution – Safe Harbor, pre-tax only Loan Option

How Do I Enroll? : 

25 How Do I Enroll? test Pre-tax Post-tax Complete personal information. Select how much you would like to save.

How Do I Enroll? : 

26 How Do I Enroll? Select the fund(s) you would like to invest in. Total percentage must be 100%. Sign here!

How Do I Enroll? : 

27 How Do I Enroll? Complete the Beneficiary form. Select your primary beneficiary(ies). There is a column for up to 3 primary beneficiaries. Secondary beneficiaries receive the money if both you and the primary beneficiary(ies) are deceased. Sign here!

How Do I Enroll? : 

28 How Do I Enroll? Complete page 2 of the beneficiary form. SINGLE? Check the appropriate box in the top section, then sign & date. MARRIED? If your spouse is your primary beneficiary, the form is now complete. If your spouse is not your primary beneficiary, he/she will need to complete this section with the signature of a Notary Public.

Slide 30: 

29 Questions?

Notes and Disclosures : 

30 Notes and Disclosures Mutual fund shares are not deposits or obligations of, or guaranteed or endorsed by, any bank, and are not insured by the Federal Deposit Insurance Corporation, the Federal Reserve Board or any other agency. An investment in mutual funds involves risks, including the possible loss of principal. Investments in money market mutual funds are neither insured nor guaranteed by the U.S. Government and there can be no assurance that a money market fund will be able to maintain a stable $1.00 net asset value. The compensation earned by PNC Bank and its affiliates from mutual fund investments is calculated as a percentage of the daily amounts invested in such mutual funds. PNC Institutional Investments is a registered service mark of The PNC Financial Services Group, Inc. (“PNC”) for investment management and fiduciary services and certain FDIC-insured banking products and services provided by the PNC subsidiaries, PNC Bank, National Association and PNC Bank, Delaware, which are Members FDIC. Securities products and brokerage services are offered through J.J.B. Hilliard, W.L. Lyons, Inc. and PNC Investments, LLC, which are registered broker-dealers and members of the NASD and SIPC. J.J.B. Hilliard, W.L. Lyons, Inc. is also a member of the NYSE. Insurance products and advice may be provided by PNC Insurance Services LLC and J.J.B. Hilliard, W.L. Lyons, Inc., licensed insurance agency affiliates of PNC, or by licensed insurance agencies that are not affiliated with PNC; in either case a licensed insurance affiliate will receive compensation if you choose to purchase insurance through these programs. A decision to purchase insurance will not affect the cost or availability of other products or services from PNC Advisors or its affiliates. PNC Advisors does not provide legal, tax or accounting advice. For more complete information regarding any of the BlackRock Funds, including charges and expenses, call 800-441-7762 to obtain a prospectus. Please read it carefully before investing. Shares of the Funds are distributed by BlackRock Distributors, Inc., which is not affiliated with PNC Bank or any other bank. Affiliates of PNC Bank receive compensation from BlackRock Funds for providing investment advisory and other services. No assurance can be given that a fund’s investment objective will be achieved. Investments and Insurance: Not FDIC Insured. No Bank or Federal Government Guarantee. May Lose Value.