T Termsheet (Final Terms) Vontobel Investment Banking VONCERT OPEN END

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1 T Termshee (Final Terms) VONCERT OPEN END SSPA Designaion: TRACKER CERTIFICATE (1300) +41(0) or VONCERT OPEN END in EUR on he Solacive Global Susainabiliy Leaders Performance-Index PRODUCT DESCRIPTION These VONCERT Open End as racker cerificaes, reflec he performance of he "Solacive Global Susainabiliy Leaders Performance-Index" (he underlying). The index feaures companies which, wih regard o he environmen, social aspecs and corporae managemen, rank among he bes in heir secors (bes in class approach) and excludes hose which are acive in conroversial business secors and engage in conenious business pracices (For deails on index and is composiion, see he callable under Guide o Solacive Global Susainabiliy Leaders Performance-Index). In Swizerland, hese financial insrumens are considered srucured producs. They are no collecive invesmen schemes wihin he meaning of he Swiss Federal Ac on Collecive Invesmen Schemes (CISA), and are herefore no subjec o he regulaions of he CISA or he supervision of he Swiss Financial Marke Supervisory Auhoriy FINMA. The invesors bear he issuer's or he guaranor's credi risk. Produc Informaion 1 Issuer Vonobel Financial Producs Ld., DIFC Dubai (no raing) Keep-Well Agreemen Wih Bank Vonobel AG, Zurich (Moody's Counerpary Risk Assessmen A2 (cr)) Guaranor Vonobel Holding AG, Zurich (Moody's A3) Lead Manager Bank Vonobel AG, Zurich Paying, exercise and calculaion agen Bank Vonobel AG, Zurich SSPA produc ype Tracker Cerificae (1300), see also Underlying Place of deerminaion Spo reference Solacive Global Susainabiliy Leaders Performance-Index (furher deails on he underlying see below) Solacive AG, Guiollesr. 54, D Frankfur am Main EUR (curren index level) Issue price EUR (EUR 1.50 fron-load fee included) Reference price of he cerificae EUR Raio 1 Iniial fixing July 07, 2017, Closing prices Paymen dae July 14, 2017 Mauriy Open End Reference currency Swiss Sec. Number / ISIN / Symbol EUR; Issue, rading and redempion will follow in he reference currency CH / / ZSLSEV Iniial composiion of he Solacive Global Susainabiliy Leaders Performance-Index a iniial fixing Share Sock Exchange ISIN Currency Weighing Number of shares per VONCERT Aeropors de Paris EN Paris FR EUR 5.00% AXA SA EN Paris FR EUR 5.00% Brambles Ld. Ausralia AU000000BXB1 AUD 5.00% Ciy Developmens Ld. Singapore SG1R SGD 5.00% DNB ASA Oslo NO NOK 5.00% Elecrolux AB Sockholm SE SEK 5.00% Enagás, S.A. Coninuous ES EUR 5.00% Ericsson Sockholm SE SEK 5.00% Gecina SA EN Paris FR EUR 5.00% Hankook Tire Co., Ld. Souh Korea KR KRW 5.00% Herman Miller Inc. Nasdaq US USD 5.00% ING Groep NV EN Amserdam NL EUR 5.00% Legrand S.A. EN Paris FR EUR 5.00% Münchener Rück AG Xera DE EUR 5.00% NEC Corp. Tokyo JP JPY 5.00% Nokian Renkaa OYJ Helsinki FI EUR 5.00% Smurfi Kappa Group Plc Dublin IE00B1RR8406 EUR 5.00% Page 1

2 STMicroelecronics NV EN Paris NL EUR 5.00% Tieo OYJ Helsinki FI EUR 5.00% Valme Corporaion Helsinki FI EUR 5.00% Redempion amoun Performance facor Reference price Managemen fee Currency-hedged The redempion amoun per VONCERT Open End on erminaion dae corresponds o he base price muliplied by he raio and by he performance facor, if applicable convered ino he reference currency: Redempion amoun = Reference price of he cerificae * Raio* Performance facor The performance facor of he underlying on erminaion dae corresponds o he performance of he underlying less Managemen Fee and is calculaed wih he following formula: Where: B Fee d B B 1 Fee d 360 are he rading days during he lifeime of he VONCERT Open End is he reference price of he underlying a he end of he rading day (B0 = Reference price of he underlying a iniial fixing) is he managemen fee is he number of calendar days beween -1 and Is he closing price of he underlying deermined by he place of deerminaion on a rading day. 1.2% p.a. No Furher Informaion Issue size Issuer's call righ Invesor's redempion righ Tile Deposiory Clearing / Selemen Applicable Law / Jurisdicion Publicaion of noificaions and adjusmens Secondary marke rading Lising Minimum invesmen Minimum rading lo Figures for fees and charges Supervision 100'000 VONCERT Open End, he size may be increased The issuer shall be eniled o call all ousanding VONCERTs Open End half-yearly, a he second Wednesday of he monhs May and November (firs ime in November 2017) for he purpose of early repaymen ("Redempion Dae") wihou giving any indicaion of reasons. Appropriae noificaion is o be published a leas one monh in advance. In his even, he erm of he VONCERT Open End shall end early. In he even of a erminaion, he redempion amoun shall be esablished on he relevan erminaion dae. The redempion shall be made wihin five banking days of he erminaion dae. If adjusmens are planned or have already been made o he index which are, o he issuer s mind, such ha a coninuaion of he VONCERT Open End does no seem appropriae, he issuer shall also have he righ o erminae he VONCERT Open End a any ime and wihou noice period as of a dae i ses. The relevan noificaion mus be published as soon as possible, saing he erminaion dae auhoriaive for calculaing he redempion amoun. In addiion o having he opion of selling he VONCERTs Open End wihin he respecive rading imes on or off he floor, he invesor has he righ o exercise his VONCERTs Open End a he second Wednesday of he monhs May and November (firs ime in November 2017). The exercise declaraion mus be submied o he calculaion agen no laer han five banking days before he exercise dae by phone or fax (Bank Vonobel AG Zürich; Phone Number ; Fax Number: ). The Srucured Producs are issued in he form of non-cerificaed book-enry securiies of he issuer. No cerificaes, no prining of bonds. SIX SIS AG SIX SIS AG, Euroclear Brussels, Clearsream (Luxembourg) Swiss law / Zürich 1, Swizerland All noificaions o invesors concerning he producs and adjusmens o he produc erms (e.g. due o corporae acions) are published under he "Produc hisory" of he respecive produc a and, in he case of producs lised on he SIX Swiss Exchange in accordance wih he valid provisions a Throughou he enire erm a secondary rading is conduced. Indicaive daily prices of his produc are available a Will be applied for in he main segmen a he SIX Swiss Exchange. 1 VONCERT Open End 1 VONCERT Open End Vonobel esimaes he Issuer Esimaed Value (IEV) of his produc a 98.50%, which gives a Toal Expense Raio (TER) of 1.50%. Disribuion charges up o 1.00% are included in his TER figure. Bank Vonobel AG is auhorised as a bank and securiies dealer in Swizerland and is subjec o prudenial supervision by he Federal Financial Markes Regulaor (FINMA), while Vonobel Holding AG and Vonobel Financial Producs Ld. as group member companies are subjec o complemenary, consolidaed group supervision by he FINMA. Vonobel Financial Producs Ld. is regisered in he regiser of he Dubai Inernaional Finance Cenre as a non-regulaed company. Neiher Vonobel Financial Producs Ld. nor Vonobel Holding AG are financial inermediaries subjec o prudenial supervision wihin he meaning of ar. 5 para.1 subpara. a ciph of he CISA. Page 2

3 Tax reamen in Swizerland Swiss Income Tax Swiss Wihholding Tax Issuance Samp Tax Swiss urnover ax General informaion Dividends and oher disribuions ha are reinvesed in he Index consiue axable invesmen income and are subjec o income ax in Swizerland. Each year he calculaion agen shall submi he annual financial saemens required for ax purposes o he FTA. No Swiss wihholding ax No Swiss samp duy a issuance Secondary marke ransacions are no subjec o he swiss urnover ax. Transacions and paymens relaing o his produc may be subjec o furher (foreign) ransacion axes, duies and/or wihholding axes, in paricular a wihholding ax pursuan o he Secion 871(m) of he US Inernal Revenue Code. All paymens from his produc will occur wih any applicable axes and duies deduced. The axaion menioned is a non-binding and non-exhausive summary of he applicable reamen of Swissdomiciled privae invesors for ax purposes. The invesor's specific circumsances, however, are no aken ino accoun. We poin ou ha Swiss and/or foreign ax law or he auhoriaive pracice of Swiss and/or foreign ax auhoriies can change a any ime or specify furher ax or charge liabiliies (possibly even wih rerospecive effec). Poenial invesors should have he ax effecs of he purchase, holding, sale or repaymen of his produc examined by heir own ax adviser - especially wih respec o he effecs of axaion under anoher jurisdicion. Descripion of he underlying Solacive Global Susainabiliy Leaders Performance-Index The Solacive Global Susainabiliy Leaders Performance-Index an index of Solacive AG. The index feaures companies which, wih regard o he environmen, social aspecs and corporae managemen, rank among he bes in heir secors (bes in class approach) and excludes hose which are acive in conroversial business secors and engage in conenious business pracices. Index guidelines as well as furher informaion maerial on he index can be downloaded free of charge a Index Type: Performance-Index Index Currency: EUR; one index poin corresponds o EUR 1.00 Place of deerminaion: Solacive AG, Guiollesr. 54, D Frankfur am Main, Deuschland Idenificaion: ISIN DE000SLA3FG3 / WKN SLA3FG / Reuers RIC. SOLGSLN Performance: Available a Index calculaion deails: Available a Index calculaion adjusmens: Available a Licence noice: Solacive Global Susainabiliy Leaders Performance-Index calculaed by Solacive AG ("Licensor"). The VONCERT Open End on he Solacive Global Susainabiliy Leaders Performance-Index is no sponsored, endorsed, sold or promoed by he licensor and he licensor shall no have any responsibiliy or liabiliy wih respec hereo. The licensor does no offer any warrany or insurance express or aci, neiher wih regard o he resuls of he use of he index nor wih regard o he index level a a cerain ime or from anoher poin of view. PROSPECTS OF PROFIT AND LOSSES VONCERT Open End are racker cerificaes which allow paricipaing in an underlying insrumen s performance in a ransparen way and wih a single ransacion. Any poenial profi consiss of he posiive difference beween he sales price achieved, i.e. he redempion price, and he purchase price. VONCERT Open End do no provide ongoing revenues. The value of he VONCERT Open End during heir erm is significanly influenced by he price developmen of he underlying insrumen resp. is componens. A loss is made if he VONCERT Open End are sold or redeemed a a lower rae han he purchase price paid. Such a loss scenario can arise if he underlying insrumen develops negaively due o value-deermining facors, such as ineres rae developmens and changes o he raing or crediworhiness of baske componens. Therefore, he price of he VONCERT Open End may fall significanly below he issue price/purchase price during he erm and/or on mauriy, which resuls in a corresponding loss. VONCERT Open End have no capial proecion. The maximum loss can lead o a loss of he capial invesed. Assumpions and limiaions in preparing he marke scenarios The following marke scenarios should afford he invesor a simplified way of making an assessmen of he significan facors ha influence he invesmen performance of he cerificae. For a precise analysis of he profi and loss scenarios, reference mus be made o he formulas and definiions se ou in his ermshee, (e.g. for "reimbursemen"), because hese scenarios have been deliberaely simplified in order o make hem beer undersandable. Wih he excepion of hose cerificaes for which one of he following facors is defined as he underlying (e.g. a currency cerificae or a cerificae of ineres), he impac of hese risk facors will be excluded from he simplified presenaion of he scenario Foreign currency risks Ineres rae risks Volailiy risks Issuer risk Page 3

4 Marke scenarios Fees and coss boh semming from he cerificae and for he acquisiion and holding of he cerificae Maximum gain: Underlying performance Maximum loss: 100% Posiive scenario: Indicaive performance of he cerificae: 0% o underlying performance - Proporional paricipaion in posiive marke performance Break even: Indicaive performance of he cerificae: 0% - Closing price of underlying = reference price level a he ime of he invesmen Negaive scenario: Indicaive performance of he cerificae: Loss of up o 100% possible - Closing price of underlying is lower han he reference price level a he ime of he invesmen SIGNIFICANT RISKS FOR INVESTORS Currency risks If he underlying or underlyings is/are denominaed in a currency oher han he produc's reference currency, invesors should bear in mind ha his may involve risks due o flucuaing exchange raes and ha he risk of loss does no only depend on he performance of he underlying(s) bu also on any unfavourable performance of he oher currency or currencies. This does no apply for currency-hedged producs (quano srucure). Marke risks The general marke performance of securiies is dependen in paricular on he developmen of he capial markes which, for heir par, are influenced by he general global economic siuaion as well as by he economic and poliical framework condiions in he respecive counries (so-called marke risk). Changes o marke prices such as ineres raes, commodiy prices or corresponding volailiies may have a negaive effec on he valuaion of he underlying(s) or he srucured produc. There is also he risk of marke disrupions (such as rading or sock marke inerrupions or disconinuaion of rading) or oher unforeseeable occurrences concerning he respecive underlyings and/or heir sock exchanges or markes aking place during he erm or upon mauriy of he srucured producs. Such occurrences can have an effec on he ime of redempion and/or on he value of he srucured producs.in he even of rading resricions, sancions and similar occurrences, he issuer is eniled, for he purpose of calculaing he value of he srucured produc, o include a is own discreion he underlying insrumens a heir mos recenly raded price, a a fair value o be esablished a is sole discreion or indeed as worhless, and/or addiionally o suspend pricing in he srucured produc or liquidae he srucured produc premaurely. Secondary marke risks Under normal marke condiions, he issuer or he lead manager inend o pos bid- and ask-prices on a regular basis. However, neiher he issuer nor he lead manager is under any obligaion wih respec o invesors o provide such bid- and ask-prices for specific order or securiies volumes, and here is no guaranee of a specific liquidiy or of a specific spread (i.e. he difference beween bid- and ask-prices), for which reason invesors canno rely on being able o purchase or sell he srucured producs on a specific dae or a a specific price. Issuer risk The value of srucured producs may depend no only on he performance of he underlying(s), bu also on he crediworhiness of he guaranor, which may change during he erm of he srucured produc. The invesor is exposed o he risk of defaul of he guaranor. For furher informaion on he raing of Bank Vonobel AG or Vonobel Holding AG, please see he issuance programme. Resricions on sales U.S.A., U.S. Subjecs, UK, DIFC/Dubai European Economic Area (EEA): Invesors should noe he selling resricions: since neiher his ermshee nor he issuance programme mees he requiremens of he EU Prospecus Direcive, he implemening regulaions or he naional ransposing measures, his securiy may no be publicly offered for sale wihin he European Economic Area (EEA) unil a corresponding prospecus has been drawn up and approved by he supervisory auhoriy, unless: (a) his offer is aimed exclusively a qualified invesors, (b) his offer is aimed a fewer han 150 invesors in oal in each sae in he EEA, (c) he minimum invesmen amoun per invesor is EUR 100,000 or he securiies have a minimum nominal value of EUR 100,000, or (d) he selling price of all he securiies offered is less han EUR 100,000. Furher risk informaion and selling resricions Please also noe he addiional risk facors and selling resricions se ou in deail in he issuance programme. LEGAL NOTICES Produc documenaion Only he Termshees published a along wih he associaed noices and adjusmens shall be legally valid. The original version of he Termshee is in German; foreign-language versions consiue non-binding ranslaions. The issuer and/or Bank Vonobel AG is eniled o correc spelling misakes, calculaion or oher obvious errors in his Termshee and o make ediorial changes, as well as o amend or supplemen conradicory or incomplee provisions, wihou he consen of he invesors. Up unil he iniial fixing dae, he produc erms designaed as such of he "Termshee (Indicaion)" are indicaive and may be adjused. The issuer is under no obligaion o issue he produc. The "Termshee (Final Terms)", which is usually issued on he dae of he iniial fixing, conains a summary of Page 4

5 he mos imporan final erms and informaion, and consiues he "Final Terms" pursuan o ar. 21 of he Addiional Rules for he Lising of Derivaes of SIX Swiss Exchange. Togeher wih he curren issuance programme, regisered wih SIX Swiss Exchange (he Issuance Programme ), he Final Terms consiue he complee lising prospecus according o he Lising Rules. In he even of discrepancies beween his Termshee and he Issuance Programme, he provisions of he Final Terms shall ake precedence. For srucured producs no lised on he SIX Swiss Exchange, he Termshee (Indicaion) consiues he preliminary simplified prospecus and Termshee (Final Terms) consiues he definiive simplified prospecus pursuan o ar. 5 of he Federal Ac on Collecive Invesmen Schemes (CISA). In addiion, reference is also made (wih he excepion of he provisions auhoriaive for a lising) o he Issuance Programme, in paricular o he deailed informaion on risks conained herein, o he General Terms and Condiions and o he descripions of he corresponding produc ypes. During he enire erm of he srucured produc, all documens may be ordered free of charge from Bank Vonobel AG, Financial Producs documenaion, Bleicherweg 21, 8002 Zurich (elephone: +41 (0) ) and may also be downloaded on he websie. Vonobel explicily rejecs any liabiliy for publicaions on oher Inerne plaforms. Furher informaion The lis and informaion shown do no consiue a recommendaion concerning he underlying in quesion; hey are for informaion purposes only and do no consiue eiher an offer or an inviaion o submi an offer, or a recommendaion o purchase financial producs. Indicaive informaion is provided wihou warrany. The informaion is no a subsiue for he advice ha is indispensable before enering ino any derivaive ransacion. Only invesors who fully undersand he risks of he ransacion o be concluded and who are commercially in a posiion o bear he losses which may hereby arise should ener ino such ransacions. Furhermore, we refer o he brochure "Special Risks in Securiies Trading" which you can order from us. In connecion wih he issuing and/or selling of srucured producs, companies from he Vonobel Group can pay reimbursemens o hird paries direcly or indirecly in differen amouns (for deails see "Figures for fees and charges ). Such commission is included in he issue price. You can obain furher informaion from your sales agen upon reques. We will be happy o answer any quesions you may have concerning our producs on +41 (0) from CET on bank business days. Please noe ha all calls o his number are recorded. By calling his number, your consen o such recording is deemed given. Maerial changes since he mos recen annual financial saemens Subjec o he informaion in his Termshee and he Issuance Programme, no maerial changes have occurred in he asses and liabiliies, financial posiion and profis and losses of he issuer/guaranor since he reporing dae or he close of he las financial year or he inerim financial saemens of he issuer and, as he case may be, of he guaranor. Responsibiliy for he lising prospecus Bank Vonobel AG akes responsibiliy for he conen of he lising prospecus and hereby declares ha, o he bes of is knowledge, he informaion is correc and ha no maerial facs or circumsances have been omied. Zurich, 07 July 2017 Bank Vonobel AG, Zurich Your cusomer relaionship manager will be happy o answer any quesions you may have. Bank Vonobel AG Gohardsrasse 43, CH-8022 Zürich Telefon +41 (0) Inerne: hp:// Banque Vonobel SA, Rue du Rhône 31, CH-1204 Genève Téléphone +41 (0) Inerne: hp:// Page 5