Leverage Certificate on SX5E Dividend Future Dec 2014 Various Leverage (SSPA cat. 199) Zurich, June 2009 Leverage Certificate on SX5E Dividend Future Dec 2014 Investment Case Financial crisis weighs heavily on corporate’s income statements. Dwindling profits force enterprises to cut or suspend dividend payments. Balance sheet restructuring (recapitalisation etc.) will continue next year. HOWEVER: Recent macro data indicates economic stabilisation. Moment of economic upswing unknown yet, but certain to take place. ) 2 Dividend futures imply no improvement of economic conditions during the next five years. Therefore, entry point appears appealing. Leverage Certificate on SX5E Dividend Future Dec 2014 Definition of Underlying Eurex launched dividend futures on the DJ Euro Stoxx 50® last year. Previously, one could trade dividends only via swaps in the OTC market. Now, this asset class is also accessible for retail clients. By purchasing a future contract, the investor gains the right on the cumulative gross dividend of the DJ Euro Stoxx 50® in 2014. Value of underlying at maturity does not depend on any market opinion, but can be defined accurately. Index contains companies that pay high dividends from a diverse range of industries such as energy, utilities, telecoms, industrials and financials. 3 Leverage Certificate on SX5E Dividend Future Dec 2014 Price History Underlying Market expects dividends 2014 below long-term average 180 € 160 € 140 € 120 € 100 € 80 € 60 € 40 € 20 € 19 98 19 99 20 00 20 01 20 02 20 03 20 04 20 05 20 06 20 07 20 08 20 09 E 20 10 E 20 11 E 20 12 E 20 13 E 20 14 E 0€ Dividends in Euro 4 Ø Dividends from 1998 to 2008 Leverage Certificate on SX5E Dividend Future Dec 2014 Benefits & Risks Benefits Product does not contain any options and therefore reacts promptly to price changes of the underlying in the secondary market. Survivorship bias: companies with shrinking capitalisation will be excluded from the index over time and replaced by higher capitalised stocks (adjustments made by index sponsor). When capital markets calm down it is likely that companies will increase the payout ratios, even with stagnating profits. Higher dividend yields when interest rates rise (inflation scenario). Risks If there is a deep economic depression, the product bears a substantial downside potential (stop loss limit at 30%). Secondary market spread will be larger (up to 4%) compared to other products due to the underlying and leverage. 5 Leverage Certificate on SX5E Dividend Future Dec 2014 Summary The product suits investors who… expect an economic recovery within the next few years. assume that companies will be able to increase dividend payments after balance sheet restructuring. show high risk tolerance. 6 Leverage Certificate on SX5E Dividend Future Dec 2014 Product Data Underlying: SX5E Dividend Future Dec 2014 Issue Price: EUR 102.- Leverage at Issue Date: 2x Stop Loss Limit: EUR 30.- Maturity: 5.5 years Valor: 10.249.969 Symbol: JFESL Listing on the SIX Swiss Exchange SSPA Category: Various Leverage (199) In Subscription until 25th July 2009 7 Contact Equity Derivatives Sales +41 58 888 81 81 Internet derivatives.juliusbaer.com Reuters JBSTP Bloomberg JBSTP Print Media FuW, Handelszeitung, NZZ Disclaimer This document constitutes Marketing Material and is not the result of financial research and therefore not subject to legal requirements regarding the independence of investment research. 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