Performance creates trust

Investing in indices and commodities with leverage

Mikaela Hildén, Bank Vontobel Europe AG

Nordnet Finland

31 January 2017

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Important legal information

This presentation serves solely to provide you with information and does not constitute a solicitation or offer by Bank Vontobel Europe AG, Frankfurt am

Main branch (referred to collectively with affiliates as "Vontobel"), to purchase or sell securities. The information provided to you in this presentation does

not constitute financial analysis and also does not satisfy the statutory requirements for ensuring the unbiased nature of financial analysis; nor is such

information subject to a ban on trading prior to the publication of financial analyses.

The information included in this presentation does not constitute any investment, tax or other advisory service. Such information does not take into

account your specific situation as regards to your investment targets and risk appetite. Such information does not replace the advice by your bank or any

other tax or financial adviser which is essential in each individual case prior to taking any purchasing decision.

In order to receive detailed information pertaining in particular to the structure and the risks associated with an investment in the securities, you should

read the relevant base prospectus which, in addition to the final terms and any supplements to the base prospectus, is published on the webpages of the

Issuer (https://certificates.vontobel.com) and which is obtainable free of charge from the Issuer, Vontobel Financial Products GmbH, Bockenheimer

Landstrasse 24, 60323 Frankfurt am Main, Germany. Investors are requested to comply with the applicable selling restrictions.

Historical price performance is not a reliable indicator of future price performance of the underlying or the securities. Note that the payment of tax,

commissions and fees may have a negative impact on the return of investment.

Not all structured products issued by the Issuer are suitable or appropriate for an investment by an interested investor. The purchase of such securities may

be linked to risks. It is strongly recommended to seek for independent advice by tax or financial advisers as well as distribution partners prior to taking any

purchasing decision.

The reproduction, distribution, modification or any other use of this presentation (in full or in part) without the written consent of Vontobel is prohibited.

The product is not sponsored, endorsed, sold or promoted by SIX Swiss Exchange Ltd and SIX Swiss Exchange Ltd makes no representation regarding the

advisability of investing in the product. The SMI® is a registered trademark of SIX Swiss Exchange Ltd, and any use thereof requires a license.

DAX® is a registered trademark of Deutsche Börse AG.

Publisher: Bank Vontobel Europe AG, Frankfurt am Main branch, Bockenheimer Landstrasse 24, 60323 Frankfurt am Main, Germany.

Copyright© 2017 Vontobel. All rights reserved.

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Overview

Presentation of the Vontobel Group

DAX®30 Index

Brent Crude Oil

What are Exchange Traded Products?

What are Bull & Bear Certificates?

Tool box!

Trading Opportunities & Risks

Q&A

4

Vontobel in brief

Global investment advisor with a long tradition and strong capital base

Vontobel specialises in asset management for private clients and institutional investors as

well as in investment banking.

Founded in 1924

90 years of entrepreneurial independence

Still family-run via majority shareholding

Listed on the SIX Swiss Exchange since 1986

Head office in Zurich, 22 locations worldwide

Around 1.500 employees

Moody‘s rating Aa3 (long-term deposit rating Bank Vontobel AG)

Three divisions: Private Banking, Asset Management, Investment Banking

Key figures:*

Total client assets: CHF 187 bn

Equity: CHF 1,40 bn

CET1 capital ratio: 17,9%

Dividend per share CHF 1,85 for 2015

*as of 30 June 2015

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Private Banking, Investment Banking, Asset Management

Vontobel specialized core capabilities

Protect and Build Wealth

We take a long term approach in protecting and building the wealth our clients

have entrusted to us. In doing so, we provide our clients with responsible and

forward-looking advice, transcending generations.

Manage Assets Actively

As active asset managers, we provide financial added value for our clients and

develop first-class solutions for return optimisation and risk mangement.

Deliver tailor-made investment solutions

We implement tailor-made investment solutions for our clients. Additionally

our products and processes are based on the latest forward-looking research.

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Overview

Presentation of the Vontobel Group

DAX®30 Index

Brent Crude Oil

What are Exchange Traded Products?

What are Bull & Bear Certificates?

Tool box!

Trading Opportunities & Risks

Q&A

7

The DAX® Index

Composed of the 30 largest German companies traded

on the Frankfurt Stock Exchange

The DAX® is an influential European index and responsive

to global market influences

BMW, Siemens and Deutsche Bank are some of the

companies listed on the German DAX®30 Index

The DAX® is highly liquid compared to other tradable

assets on the market and generally serves good volatility

and many trading opportunities

The DAX® Index 3-year graph

Key Points

Historical price performance is not a reliable indicator of future price performances.

8

Overview

Presentation of the Vontobel Group

DAX®30 Index

Brent Crude Oil

What are Exchange Traded Products?

What are Bull & Bear Certificates?

Tool box!

Trading Opportunities & Risks

Q&A

9

The Brent Crude Oil

Crude Oil has a unique standing point within the world

economic and political systems

OPEC can affect the price by regulating production output

Over-supply and shrinking demand encourage traders to

sell crude oil to lower ground while rising demand and

declining or flat production encourage traders to bid

crude oil to higher ground

Offers high liquidity and excellent trading opportunities

The Brent Crude Oil 3-year graph

Key Points

Historical price performance is not a reliable indicator of future price performances.

10

Overview

Presentation of the Vontobel Group

DAX®30 Index

Brent Crude Oil

What are Exchange Traded Products?

What are Bull & Bear Certificates?

Tool box!

Trading Opportunities & Risks

Q&A

11

Exchange Traded Products

Definition Leverage Effect

ETP:s give you a chance to increase the yield on your investment by leveraging

the performance of the underlying asset

Listed on NDX Finland – the Nordic Derivatives Exchange

Products are linked to underlying assets, e.g. an index, a commodity

Only a small amount of capital must be employed in comparison with a direct

investment in the underlying asset

Leverage effect

Vontobel products tradable free of commission* at your Nordnet depot

Broad range of opportunities that are now easy to access!

* 16.1 – 10.2.2017 Trade free of commission per order above EUR 1000 at

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Important to keep in mind!

Although leverage products offer opportunities for disproportionately high gains,

the leverage works in both directions(!) and can also result

in disproportionately heavy losses. But, you may never lose more than

your initial investment.

The Leverage Effect

13

Overview

Presentation of the Vontobel Group

DAX®30 Index

Brent Crude Oil

What are Exchange Traded Products?

What are Bull & Bear Certificates?

Tool box!

Trading Opportunities & Risks

Q&A

14

Bull & Bear Certificates

Definition Constant Leverage

Bull & Bear Certificates are open end leveraged financial products

They allow investors to participate disproportionately on stable (positive or

negative) performance of a linked reference asset, e.g. an index or a

commodity

Special strengths in stable trends, either rising (Bull Certificate) or falling

(Bear Certificate)

The leverage remains constant on a daily basis, thus the investment is

equivalent to a reinvestment on a daily basis.

Each certificate replicates the performance of an underlying factor index at a

fixed predetermined ratio. The factor index disproportionately reflects the

performance of the reference instrument on a daily basis by multiplying the

change in its value by a constant factor indices.vontobel.com

Constant leverage at Vontobel from x2 to x15

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Factor Index for Bull & Bear Certificates

Example: The value of a Bull Certificate with a leverage of 4 will theoretically rise four-times as much as the reference

instrument. If the reference instrument rises by 2%, the value of the underlying factor index will rise by 8%. On the

other side it will lose 8% of its value when the reference instrument decreases by 2%.

Bull Certificate on the 4x

Long Index linked to DAX®

4x Long Index

linked to DAX® DAX®

Check out the Index portal at Vontobel indices.vontobel.com

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Risks Opportunities

Bull & Bear Certificates

Trading of strong market trends and momentum-driven

market phases, either rising (Bull Certificate) or falling

(Bear Certificate)

Transparent financial instrument due to the leveraged

index, which replicates the respective underlying with a

constant leverage

They allow investors to participate disproportionately on

stable (positive or negative) performance of a linked

reference asset, e.g. an index, a commodity…

Optimal short-term investment product to take part

disproportionately of a stable price trend

Sideways markets without strong trends can generate

significant losses for investors

The price of the certificates may differ significantly from

the intrinsic value during market turmoil as well as in

market phases with significantly higher volatility and/or

market phases with low liquidity

Volatile markets, gap risks as well as liquidity risks

could lead to an increase of the risk margin in the

Certificate. This is a necessary measure for the market

maker in order to manage its risk positions

Furthermore, the market maker can widen the spreads for

risk management reasons

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Overview

Presentation of the Vontobel Group

DAX®30 Index

Brent Crude Oil

What are Exchange Traded Products?

What are Bull & Bear Certificates?

Tool box!

Trading Opportunities & Risks

Q&A

18

How may I succeed trading Exchange Traded Products?

A trading tool box!

Take advantages of bull and bear market trends

Chose the right moment to enter your trade

Decide on mental “stoplosses” to cut potential losses quicker

Decide on a target price to let your investment be goal determined

Know the risks and opportunities

Alternate short and mid to long-term products, stay active!

Let the trend be your friend…

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Overview

Presentation of the Vontobel Group

DAX®30 Index

Brent Crude Oil

What are Exchange Traded Products?

What are Bull & Bear Certificates?

Tool box!

Trading Opportunities & Risks

Q&A

20

Linked to DAX®30 Index & Brent Crude Oil Futures

Trading Bull & Bear Certificates with high/low leverage

High leverage results in a high potential reward as well as imposing high

risk!

Remember that quick rewards may as well result in quick heavy losses, lower

leverage mitigates the product value fluctuations

There are opportunities to hedge a portfolio consisting of stocks included in

the DAX® by shorting the DAX® for instance…

Dedicate focus in your portfolio by lifting the performance of the DAX® or the

Brent Crude Oil linked to leverage products, with either low or high leverage!

Stay updated on economic data and political news affecting the global

economy, including unemployment rates, job creation, interest rates, GDP

figures and other economic benchmarks

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Risks

Opportunities

Short summary of Exchange Traded Products

Participating on clear market trends and a broad access

to global markets!

Fast way to react on company‘s data and also on

economic developments (e.g. oil price, currencies,

economic figures)

Use volatility of capital markets. Flexible instruments

for day trading, swing trading as well as hedging and risk

management

The high liquidity provided by each issuer’s market

makers offer increased market opportunities

Dedicate focus or hedge your portfolio by lifting the

performance of chosen assets with leverage products

Create an alternative to your portfolio, exchange the

assets to products with low leverage – for active traders!

These products are particularly risky and not suitable for

all type of investors

ETPs are complex financial products and requires a good

understanding for the underlying market and the products

specific conditions and characteristics

When investing in ETPs, there is a risk of loosing your

total invested amount

Consider liquidity risk, issuer risk, market risk, currency

risk, gap risk

The higher the leverage is, the higher also the risk

Investors are responsible for reviewing all risk factors

belonging to the products, which are enclosed in the base

prospectus and the respective final terms on the

Vontobel website

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Trade Vontobel products at Nordnet free of commission* 16.1-10.2.2017

www.nordnet.fi/vontobel

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Overview

Presentation of the Vontobel Group

DAX®30 Index

Brent Crude Oil

What are Exchange Traded Products?

What are Bull & Bear Certificates?

Tool box!

Trading Opportunities & Risks

Q&A

24

Thank you for your attention!

Mikaela Hildén, Bank Vontobel Europe AG

sertifikkatti@vontobel.com / 0800 91 77 91

www.certificates.vontobel.com

Twitter @Vontobel_FP_FI

Bank Vontobel Europe AG Bockenheimer Landstraße 24 DE-60323 Frankfurt am Main Germany