CAPITAL-PROTECTED INVESTMENTS OCTOBER 2014

Transcription

1 CAPITAL-PROTECTED INVESTMENTS OCTOBER 2014

2 Investment offers Capital-protected investments Equity-linked Note Pan Asia Follows the index S&P Pan Asia Low Volatility Index (SEK). Equity-linked Note Europe Follows the index S&P Europe 350 Low Volatility Index (EUR). Equity-linked Note Global Health Follows a basket of ten pharmaceutical companies. Equity-linked Note Global Titans Follows a basket of ten multi-national companies. Equity-linked Note Sweden Follows the index OMX Stockholm 30 Index. Full information about the offer Investments in financial instruments are risk related. You can learn more about the risks on the Fact sheet further back in the brochure. Full information on the Issuer and the offer of the financial instruments is only available on the basis of the combination of these Final Terms and Base Prospectus for the Medium Term Note Programme. SEB s MTN-program is available at seb.se/strukt. The Final Terms is available at seb.se/kapitalskydd.. Issue price Nominal amount Participation Rate Term 1410A 1410B % 120% 5 yr 5 yr 1410E % 4 yr 1410F % 4 yr 1410H % 3 yr 1410K 1410L 1410S 1410T % 215% 50% 120% 3 yr 3 yr 4 yr 4 yr Product group B. More information about SEB s product groups is available at How to invest You can buy our capital-protected investments through our internet bank or at the nearest SEB office.

3 Invest safely in different asset classes through capital protected investments SEB s investment philosophy is based on to seven different asset classes, that open up to a variety of investment opportunities. The palette ranges from more traditional asset classes such as equities and fixed income to alternative asset classes such as real estate, currencies, commodities, private equity and hedge funds. You can combine the potential gain of one of these underlying assets while maintaining the security of our capital protected notes. The benefits of capital protected investments Seen over a longer time period, there are benefits of investing in capital protected notes. Analyses on Swedish indexlinked notes issued by SEB from 1999, show that the index-linked notes have outperformed its underlying index. Both the index-linked note and the underlying index follow the market movement. However, the capital protection prevents the downside market performance which benefits the performance of the index-linked note. The graph illustrates the performance (including brokerage fee of 2 percent) of the capital protected investment whose return is linked to the Swedish stock market, compared with the Swedish stock market (including dividends). The data refers to past performance. Historical performance is no guarantee for future results.

4 How does a capital protected investment work? A capital protected investment means that the nominal amount will be paid by the issuer on redemption day. The investments described in the brochure are issued by SEB. Repayment of the nominal amount and possible return therefore requires that SEB meets its obligations on the maturity date. Normally, a capital protected investment is constructed to fit investors who believe in a rising market. This means that if the underlying market that the investment is linked to has risen on the maturity date, the investment will pay an amount related to the rise. If the price of the underlying market is unchanged or has fallen, the investment will repay the nominal amount (SEK 10,000 per note) on the redemption date.the growth in the underlying market is calculated as the difference between the initial and closing value. Some types of capital protected investments are constructed so that any additional amount is paid out even if the underlying market has fallen, moved within a certain range or has gone up compared to another market. The general description in the brochure relates to capital protected investments that are constructed for those who believe in a rising market. How each individual offer works is described on the respective product page in the brochure and it s specific Final Terms. The closing value is often defined as an average over the final year, this reduces the impact of a possible fall. If the underlying market rises during this period, the closing value will be lower than the actual market rise. At a fall, the closing value will be higher than the actual market fall. Further information on how the closing value is determined for the current offer is detailed on the Fact sheet at the end of this brochure. Issue above par the possibility of higher returns but to greater risk. Out offers are offered at different prices, for example SEK 10,000 or SEK 11,000. The higher the price the investor pays at time of purchase for a capital protected investment, the higher the participation rate and therefore the higher potential for future returns. If the investor chooses a capital protected investment for SEK 11,000 the investor will take a greater risk of SEK 1,000. If the market goes up, the investor receives a higher return. If the market falls or remains unchanged on the redemption date, the investor receives the principal amount (SEK 10,000) and makes a loss equal to the issue above par and Commission. Possibility to sell before maturity. The basic idea of a capital protected investment is that the investor keeps it until the redemption date, as this is when the investor receives at least the principal amount. You still have the opportunity to sell during the term of the investment, for example if the investment has risen in value and you want to make a profit hedging. Sales are made at daily value, which means that prices can be both higher and lower than the investment s nominal amount, partly because of how the underlying market has developed to the time of sale. If the underlying market value rises, the value of the investment is also rising, but not as fast. At the beginning of the maturity of the investment, you should not have the same expectation that a capital protected investment will increase in value at the same pace as the underlying market. This is particularly true for the capital protected investments that have a limit on the possible return (when there are only returns up to a certain, predetermined level). What is participation? The participation shows how much of the market s rise you will have access to (leverage). The participation is multiplied by the market rise. If the participation is greater than 100 percent, the investor can get a higher return than the underlying market rise. The participations in the brochure are preliminary and they will be determined at settlement date. Thereafter, they remain unchanged. A few examples of what affects participations are Swedish interest rates, the price movement (volatility) in the selected market and the situation on the currency markets. Information about the minimum participation rate can be found on the Fact sheet under the section Issuer s right to cancel. The final participations will be confirmed in the Final Terms which can be found on the Secondary Market, quotation list on

5 EQUITY-LINKED NOTE PAN ASIA 1410A/1410B 1410A Issue price: SEK per Note Participation: 50 %* 1410B Issue price: SEK per Note Participation: 120 %* Maturity: 5 years** Summary The return is linked to the S&P Pan Asia Low Volatility 50 Index (SEK) which covers 12 countries in the Pan Asia region. The index selects the 50 least volatile stocks in the S&P Pan Asia LargeMidCap BMI Index universe. The product is Capital Protected. At maturity, the investor receives at least 100 percent of the Nominal Amount. Why invest in Pan Asia? + Continued good economic outlook in most parts of the Asia region. + Continued good growth in private consumption. - A long period of rapid credit growth may worry. - Effect of Federal Reserve's Tapering is still uncertain. Top ten companies with largest weight in the index (as of June 2014) Company Sector Country Sime Darby BHD Chunghwa Telecom CO LTD CLP Holdings LTD Public Bank BHD Telstra Corp LTD Singapore Press Holdings Axiata Group BHD Overseas-Chinese Banking Singapore Exchange LTD Hang Seng Bank LTD Industrials Telecommunications Utilities Telecommunications Consumer Discretionary Telecommunications Malaysia Taiwan Hong Kong Malaysia Australia Singapore Malaysia Hong Kong Singapore Hong Kong *Preliminary. For the lowest possible participation, please read the section Issuer s right to cancel. ** For exact term, see Fact sheet

6 EQUITY-LINKED NOTE EUROPE 1410E/1410F 1410E Issue price: SEK per Note Participation: 50 %* 1410F Issue price: SEK per Note Participation: 160 %* Maturity: 4 years** Summary The return is linked to the S&P Europe 350 Low Volatility Index (EUR) which covers the 17 largest stock markets in Europe. The index selects the 100 least volatile stocks. The return is affected both by the basket performance and the exchange rate changes between the Swedish krona and the Euro. A weakening of the Euro has a negative effect while a strengthening of the Euro has a positive effect. The nominal amount is not affected by exchange rate changes. At maturity, the investor receives at least 100 percent of the Nominal Amount. Why invest in Europe? + Positive outlook for rising corporate profits. + Private and professional investors are more positive towards the European market. - There are still uncertainties concerning the European economy. - Investors are still conservative about the development in Europe. Top ten companies with largest weight in the index (as of August 2014) Company Sector Country MAN AG Groupe Bruxelles Lambert SA Zurich Financial Services AG National Grid PLC Nestle SA Swisscom AG Reed Elsevier PLC Novartis AG Reed Elsevier NV BP PLC Industrials Utilities Consumer Staples Telecommunication Consumer Discretionary Health Care Consumer Discretionary Energy Germany Belgium Great Britain Great Britain Netherlands Great Britain *Preliminary. For the lowest possible participation, please read the section Issuer s right to cancel. ** For exact term, see Fact sheet

7 EQUITY-LINKED NOTE GLOBAL HEALTH 1410H 1410H Issue price: SEK per Note Participation: 150 %* Maturity: 3 years** Summary The return is linked to a basket of ten pharmaceutical companies, please see list below. The product is Capital Protected. The return is affected both by the basket performance and the exchange rate changes between the Swedish krona and the. dollar. A weakening of the dollar has a negative effect while a strengthening of the dollar has a positive effect. The nominal amount is not affected by exchange rate changes. At maturity, the investor receives at least 100 percent of the Nominal Amount. Why invest in Global Health? + Rising demand for healthcare services and providers. + Many profitable company with strong financials. - Political decisions can have a negative impact on the sector. - Investors with a higher appetite for risk tend to choose other sectors. Equity basket Company Sector Country Eisai CO LTD Baxter International INC Fresenius Medical Care AG GlaxoSmithKline PLC Johnson & Johnson INC Medtronmic INC Novartis AG Pfizer INC Roche Holding AG Sanofi SA Health Care Equipment & Services Health Care Equipment & Services Health Care Equipment & Services *Preliminary. For the lowest possible participation rate, please read the section Issuer s right to cancel. ** For exact term, see Fact sheet Japan Germany Great Britain France

8 EQUITY-LINKED NOTE GLOBAL TITANS 1410K/1410L 1410K Issue price: SEK per Note Participation: 50 %* 1410L Issue price: SEK per Note Participation: 215 %* Maturity: 3 years** Summary The return is linked to a basket of ten large multi-national companies, please see list below. The product is Capital Protected. The return is affected both by the basket performance and the exchange rate changes between the Swedish krona and the. dollar. A weakening of the dollar has a negative effect while a strengthening of the dollar has a positive effect. The nominal amount is not affected by exchange rate changes. At maturity, the investor receives at least 100 percent of the Nominal Amount. Why invest in Global Titans? + Large, established companies offer higher stability. + Many valuations are at attractive levels. - Larger risk appetite will probably benefit smaller companies. - Many companies are sensitive to movements in private consumption. Equity basket Company Sector Country AT&T Inc CLP Holdings Ltd ConocoPhillips Co GlaxoSmithKline PLC HSBC Holdings Plc Johnson & Johnson Inc. Nestlé SA Procter & Gamble Co Royal Dutch Shell Plc Siemens AG Telecommunication Utilities Energy Health Care Health Care Consumer Staples Consumer Staples Energy Industrials *Preliminary. For the lowest possible participation rate, please read the section Issuer s right to cancel. ** For exact term, see Fact sheet Hong Kong Great Britain Hong Kong Netherlands Germany

9 EQUITY-LINKED NOTE SWEDEN 1410S/1410T 1410S Issue price: SEK per Note Participation: 50 %* 1410T Issue price: SEK per Note Participation: 120 %* Maturity: 4 years** Summary The return is linked to the index OMX Stockholm 30 Index. The index consists of the 30 most actively traded stocks on the Stockholm Stock Exchange. The product is Capital Protected. At maturity, the investor receives at least 100 percent of the Nominal Amount. Why invest in Sweden? + Rebounding profits. + Interest rates will remain low for an extended period. - Economic recovery is halting. - Political tensions between Russia and Ukraine. Top ten companies with largest weight in the index (as of September 2014) Company Hennes & Mauritz AB Nordea Bank AB LM Ericsson TeliaSonera AB Svenska Handelsbanken AB Swedbank AB Skandinaviska Enskilda Banken AB Atlas Copco AB Volvo AB Assa Abloy AB Sector Consumer Staples Telecommunication Telecommunication Industrials Industrials Industrials *Preliminary. For the lowest possible participation rate, please read the section Issuer s right to cancel. ** For exact term, see Fact sheet

10 Calculation examples Pan Asia SEB1410A Pan Asia SEB1410B Index Initial investment Redemption Return Annualised Index Initial investment Redemption Return Annualised return* incl fees amount incl fees return** return* incl fees amount incl fees return** -20% kr kr -3,9% -0,8% -20% kr kr -10,9% -2,3% 0% kr kr -3,9% -0,8% 0% kr kr -10,9% -2,3% 8,1% kr kr 0,0% 0,0% 10,2% kr kr 0,0% 0,0% 20% kr kr 5,7% 1,1% 20% kr kr 10,5% 2,0% 40% kr kr 15,3% 2,9% 40% kr kr 31,9% 5,7% 60% kr kr 25,0% 4,6% 60% kr kr 53,3% 8,9% 80% kr kr 34,6% 6,1% 80% kr kr 74,7% 11,8% Europe SEB1410E Europe SEB1410F Index Initial investment Redemption Return Annualised Index Initial investment Redemption Return Annualised return* incl fees amount incl fees return** return* incl fees amount incl fees return** -20% kr kr -3,9% -1,0% -20% kr kr -10,9% -2,8% 0% kr kr -3,9% -1,0% 0% kr kr -10,9% -2,8% 8,1% kr kr 0,0% 0,0% 7,6% kr kr 0,0% 0,0% 20% kr kr 5,7% 1,4% 20% kr kr 17,6% 4,1% 40% kr kr 15,3% 3,6% 40% kr kr 46,2% 10,0% 60% kr kr 25,0% 5,7% 60% kr kr 74,7% 15,0% 80% kr kr 34,6% 7,7% 80% kr kr 103,2% 19,4% If the dollar strengthens by 20 percent. The redemption amount will be If the dollar strengthens by 20 percent. The redemption amount will be kr, which is equivalent to 4.49 percent in annulised return kr, which is equivalent to percent in annulised return. If the dollar weakens by 20 percent. The redemption amount will be If the dollar weakens by 20 percent. The redemption amount will be kr, which is equivalent to 2.76 percent in annulised return kr, which is equivalent to 7.75 percent in annulised return. Global Health SEB1410H Index Initial investment Redemption Return Annualised return* incl fees amount incl fees return** -20% kr kr -10,9% -3,8% 0% kr kr -10,9% -3,8% 8,1% kr kr 0,0% 0,0% 20% kr kr 15,9% 5,0% 40% kr kr 42,6% 12,6% 60% kr kr 69,3% 19,2% 80% kr kr 96,1% 25,2% If the dollar strengthens by 20 percent. The redemption amount will be kr, which is equivalent to percent in annulised return. If the dollar weakens by 20 percent. The redemption amount will be kr, which is equivalent to 9.67 percent in annulised return. Global Titans SEB1410K Global Titans SEB1410L Index Initial investment Redemption Return Annualised Index Initial investment Redemption Return Annualised return* incl fees amount incl fees return** return* incl fees amount incl fees return** -20% kr kr -3,9% -1,3% -20% kr kr -10,9% -3,8% 0% kr kr -3,9% -1,3% 0% kr kr -10,9% -3,8% 8,1% kr kr 0,0% 0,0% 5,7% kr kr 0,0% 0,0% 20% kr kr 5,7% 1,9% 20% kr kr 27,5% 8,4% 40% kr kr 15,3% 4,9% 40% kr kr 65,8% 18,4% 60% kr kr 25,0% 7,7% 60% kr kr 104,1% 26,8% 80% kr kr 34,6% 10,4% 80% kr kr 142,4% 34,3% If the dollar strengthens by 20 percent. The redemption amount will be If the dollar strengthens by 20 percent. The redemption amount will be kr, which is equivalent to 6.02 percent in annulised return kr, which is equivalent to percent in annulised return. If the dollar weakens by 20 percent. The redemption amount will be If the dollar weakens by 20 percent. The redemption amount will be kr, which is equivalent to 3.69 percent in annulised return kr, which is equivalent to percent in annulised return. Sweden SEB1410S Sweden SEB1410T Index Initial investment Redemption Return Annualised Index Initial investment Redemption Return Annualised return* incl fees amount incl fees return** return* incl fees amount incl fees return** -20% kr kr -3,9% -1,0% -20% kr kr -10,9% -2,8% 0% kr kr -3,9% -1,0% 0% kr kr -10,9% -2,8% 8,1% kr kr 0,0% 0,0% 10,2% kr kr 0,0% 0,0% 20% kr kr 5,7% 1,4% 20% kr kr 10,5% 2,5% 40% kr kr 15,3% 3,6% 40% kr kr 31,9% 7,2% 60% kr kr 25,0% 5,7% 60% kr kr 53,3% 11,3% 80% kr kr 34,6% 7,7% 80% kr kr 74,7% 15,0% *Return of the underlying index is calculated as (final value/initial value-1). **Annualised return is the return per year, including fees.

11 Fact sheet Subscription period 29 September 31 October Payment date 11 November On payment date, the settlement amount is deducted in accordance with directions in the application form. Term Global Health and Global Titans 11 November November Europe and Sweden 11 November November Pan Asia 11 November November Nominal amount SEK per note. Initial Valuation Date Europe, Pan Asia and Sweden Calculated on 5 November Global Health and Global Titans Calculated on 6 November Initial Valuation Currency Date Europe, Global Health and Global Titans Calculated on 5 November Observation Dates Global Health and Global Titans Calculated as an average of the closing value of the underlying market on the 25th of every month from 25 October October Europe and Sweden Calculated as an average of the closing value of the underlying market on the 24th of every month from 24 October October Pan Asia Calculated as an average of the closing value of the underlying market on the 24th of every month from 24 October October Final Valuation Currency Date Global Health and Global Titans Calculated on 26 October Europe Calculated on 25 October Price, Fees and Compensation The price per Note varies from SEK to SEK plus a Commission depending on the chosen investment. A Commission (transaction cost) and an arranger s fee (included in the price of the investment) are charged to cover SEB s operating expenses and operating profit. The conditions for the product are set on the payment date, and settlement amount and Commission are due for payment. If the product is sold on the secondary market a Commission will be charged according to current price list. Commission 2 percent of settlement amount per settlement note. VP account holders are subject to an additional transaction fee of SEK 10. Arranger s fee The arranger s fee may vary and is determined after the terms have been decided. The arranger s fee may not exceed 1.2 % of the issued amount per year. The calculation is based on the assumption that the investment is retained until the redemption date. The arranger s fee covers costs such as production, stock exchange registration, distribution, licensing and risk management. Risk management refers to the risk arising from SEB s commitment to fulfill the terms of the investment; this risk must be actively managed during the investment's term. As a result, a risk management margin arises which can be either positive or negative. The arranger s fee is included in the price of the investment. Compensation SEB may provide compensation to a third party that distributes the Bank s capital protected investments. The compensation is normally calculated as a percentage of the invested nominal amount related to the sales of such a distributor. This means that the compensation is calculated only after the sales period is closed. SEB normally pays out percent of the invested nominal amount. The compensation is part of SEB s Arranger s fee. More information about the bank s compensation and conflicts of interest can be at Depository VP or custodian account with SEB or other bank or securities broker. Currency hedging These capital protected investments offer the opportunity to invest in global markets without currency fluctuations directly affecting the return because all calculations and payments are made in Swedish kronor. Do not apply to 1410E, 1410F, 1410H, 1410K and 1410L whose return is affected by FX changes. Exchange listing The NASDAQ OMX Stockholm Stock Exchange or other regulated stock exchange. Secondary market You can sell your capital protected investment at any time, since SEB under normal circumstances will offer a bid price. The price may be higher or lower than both the original amount invested and the nominal amount depending on the valuation. The price on the secondary market is determined by terms to maturity, the underlying market development, price movement (volatility) and interest rates. Generally, investments that contain restrictions on the growth in underlying assets have less adherences with gains in the underlying assets than would otherwise be the case. These investments are suitable in general for an investor whose investment horizon is consistent with the investment s maturity. A Commission will be charged according to current price list. Codes and Isin codes Information regarding the value of capital protected investments is provided on contract notes, annual statements, internet and letters from SEB and Euroclear Sweden AB (previously VPC) and on NASDAQ OMX Stockholm AB s price quote list. Capital protected investments are referred to by their codes which are listed below: Codes SEB1410A SEB1410B SEB1410E SEB1410F SEB1410H SEB1410K SEB1410L SEB1410S SEB1410T Isin Codes SE SE SE SE SE SE SE SE SE Comprehensive terms and conditions The terms in SEB s MTN programme published July 2014 and any published prospectus supplements together with the Final Terms, dated November 2014, govern these capital protected investments. SEB's base prospectus is published and approved by The Swedish Financial Supervisory Authority. The published base prospectus and Final Terms are available for viewing at The base prospectus is also available at The Swedish Financial Supervisory Authority. These capital protected investments and all related contractual documentation will be governed by, and construed in accordance with, Swedish law. Disputes concerning the interpretation and application of these General Terms and Conditions shall be adjudicated by Swedish courts, in the first instance by the Stockholm District Court. Swedish confidentiality (PuL) legislation For information regarding SEB s treatment of personal and other information pursuant to Swedish PuL confidentiality legislation, please refer to the reverse of the application form. Issuer Skandinaviska Enskilda Banken AB (publ) SEB, SE106 40, Stockholm, orgnr , has permission to manage Securities operations. SEB is under supervision of The Swedish Financial Supervisory Authority. SEB has received rating A+ according to Standard & Poor s, and A1 according to Moody s. Rating may be subject to change so it is the Investor s duty to obtain information about the current rating.

12 Issuer s right to cancel SEB reserves the right to cancel any or all of the investment alternatives if: A) Economic, financial or political events occur, which according to SEB's judgment may jeopardise the successful launch of these capital protected investments. B) The subscribed amount for any of the investment alternatives is less than SEK 20,000,000. C) The participation cannot be set to at least: SEB1410A 40 % SEB1410B 105 % SEB1410E 40 % SEB1410F 145 % SEB1410H 135 % SEB1410K 40 % SEB1410L 195 % SEB1410S 40 % SEB1410T 105 % Product group B. More information about SEB s product groups can be found at Complaint If you have any complaints regarding this product, you can contact the division within SEB that provided the product. If the complaint remains please contact: SEB Kundrelationer SE Stockholm Sweden Further information about complaints and how to proceed with your complaint case can be found on SEB s website, Want to know more? To contact SEB, visit your nearest SEB office or visit us our website, In general This brochure is produced by SEB and provides general market information on SEB s capital protected investments. The content is based on sources that SEB have judged to be reliable. SEB is not responsible for errors or defects in that information or for any loss whatsoever that may occur from reliance on it. If the information refers to an investment analysis you should if possible read the full report and information published in relation thereto. You are responsible in full for your investment decisions and should always obtain detailed information before deciding on an investment. Further information, such as product sheets, the Final Terms and the information-/marketing brochures for capital protected investments are available at If necessary, you can also obtain advice on investments customized to your individual needs from your advisor at SEB. Disclaimer Standard & Poor s and S&P are registered trademarks of Standard & Poor s Financial Services LLC ( S&P ) and Dow Jones is a registered trademark of Dow Jones Trademark Holdings LLC ( Dow Jones ) and have been licensed for use by S&P Dow Jones Indices LLC and sublicensed for certain purposes by SEB. The S&P Pan Asia Low Volatility Index (SEK) and S&P Europe 350 Low Volatility Index (EUR) are products of S&P Dow Jones Indices LLC, and have been licensed for use by SEB. Equity-linked Note Pan Asia and Equity-linked Note Europe are not sponsored, endorsed, sold or promoted by S&P Dow Jones Indices LLC, Dow Jones, S&P, their respective affiliates, and neither S&P Dow Jones Indices LLC, Dow Jones, S&P, their respective affiliates make any representation regarding the advisability of investing in such product(s). NASDAQ, OMX, NASDAQ OMX and OMX Stockholm 30 Index are registered trademarks and trade names of The NASDAQ OMX Group, Inc. (which with its affiliates is referred to as the Corporations ) and are licensed for use by SEB. The Product(s) have not been passed on by the Corporations as to their legality or suitability. The Product(s) are not issued, endorsed, sold, or promoted by the Corporations. THE CORPORATIONS MAKE NO WARRANTIES AND BEAR NO LIABILITY WITH RESPECT TO THE PRODUCT(S). RISKS A safe investment, but a risk nonetheless. A capital protected investment is safe because it combines the possibility of investment gains, from the underlying markets, with the security of a bond. However, there are certain risks associated with a capital protected investment. A summary of these risks follows here: Credit risk: SEB is the issuer of these capital protected investments. This means that you, as the holder of a capital protected investment, have a credit risk at SEB. Repayment of the nominal amount and any applicable return assumes that SEB is able to fulfill these commitments on the redemption date. A capital protected investment is not covered by the state deposit guarantee programme. Liquidity risk / Price risk: The capital protection, i.e. the repayment of the nominal amount, is only applicable on the redemption date. This means that the market price of the investment may be lower than the nominal amount if it is sold during its term. The price on the secondary market during the term may be higher or lower than the nominal amount depending upon the valuation. The price is calculated on various factors, amongst others, the remaining term, underlying market movements and volatility in the markets. Currency risk: A capital protected investment offers the opportunity to invest in global markets without fluctuations in currency rates directly affecting the return, because all calculations and payments are made in Swedish Kronor. This does not apply to products which have their returns linked to currency rate fluctuations. Other risks: A capital protected investment which has an issue price of e g SEK 11,000, carries a risk through the payment of a premium of SEK 1,000. If the underlying market rises it offers the possibility of a higher return. If the underlying market has dropped in value on the redemption date the investment returns the nominal amount. You take a risk on the interest you could have received if the money had been invested in pure interest-bearing investments. An investment in a capital protected investment can give a different return than a direct investment in the underlying market. Different arrangers capital protected investments, linked to the same market, are often constructed in different ways and are therefore difficult to compare. Information about how this capital protected investment is constructed can be found in the brochure. You can find more information in SEB s Swedish MTN program which is published on SEB s website. Rules on taxation Information about taxation is based on the rules that apply today. Tax rules may change over time. Any individual who is unsure about how a capital protected investment is taxed should consult a tax advisor. The consequences of the tax rules for each person will depend on their individual circumstances. Investment is constructed can be found in the brochure. You can find more information in SEB s Swedish MTN program which is published on SEB s website.

13 Example of total cost when investing a nominal amount of SEK with a commission of 2 percent Investment alternative Term Issue Price Commission Maximum Total cost (SEK)* arranger s fee ** Pan Asia 1410A 1410B 5 years 5 years 102% 110% 204 SEK 220 SEK 600 SEK 600 SEK 804 SEK 820 SEK Europe 1410E 1410F 4 years 4 years 102% 110% 204 SEK 220 SEK 480 SEK 480 SEK 684 SEK 700 SEK Global Health 1410H 3 years 110% 220 SEK 360 SEK 580 SEK Global Titans 1410K 1410L 3 years 3 years 102% 110% 204 SEK 220 SEK 360 SEK 360 SEK 564 SEK 580 SEK Sweden 1410S 1410T 4 years 4 years 102% 110% 204 SEK 220 SEK 480 SEK 480 SEK 684 SEK 700 SEK The Commission is calculated as a percentage of the invested nominal amount and is paid separately. ** Maximum arranger s fee is calculated as 1.2 percent x term.