Discount-Entry Notes

Key Features:

• Reference Assets: Single or basket of market-linked assets (i.e. stocks, commodities, bonds, ETFs or funds).‍
• Worst Performer: ‘Worst-performer’ relates to the reference asset with the highest % fall in each basket of stocks.‍
• Discount-Entry: A feature that allows investors to buy into an asset at a reduced price from today's levels. If the reference assets are forecasted to grow, the benefit from a reduced entry level may significantly outweigh the forfeited dividends.

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Discount-Entry Note Example: Australian Miners at -28% from today's price

• This 3-year growth strategy provides investors with a 28% discounted entry price into a basket of the three largest Australian miners stocks.
• For every $7,200 invested, investors have $10,000 worth of exposure to the worst performing asset in the basket. Effectively buying the worst performer at 72% of its initial price.
• If the worst performer is up 20% at maturity, investors would receive a +66.67% return on their initial investment.
• If the worst performer is below its initial price at maturity investors would receive shares in the worst performer at a cost base of 72% of its initial price, therefore softening downside losses.

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Scenarios: Example of a $72,000 Investment

Scenario 1: Bullish

The worst performing reference asset is up 20.00% at maturity. +66.67% ROI

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• $72K cash outlay buys $100K of exposure to the worst performing stock.
• The worst performer is up 20% at maturity.
• Investors receive back $120,000 in cash (100k x (1+0.2)).
• Realised Return = $120k Returned - $72k Invested = $48k (66.67% ROI).

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Scenario 2: Bearish

The worst performing reference asset is down -10% at maturity. +25.00% ROI

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• $72K cash outlay buys $100K of exposure to the worst performing stock.
• The worst performer is down -10% (90% of its initial price) at maturity.
• Investors receive back $90,000 worth of shares in the worst performer (100k x (1-0.10)).
• Unrealised Return = $90k in shares - $72k invested = $18k (25.00% ROI).

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Scenario 3: Very Bearish

The worst performing reference asset is down -35% at maturity. -9.73% ROI

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• $72K cash outlay buys $100K of exposure to the worst performing stock.
• The worst performer is down -35% (65% of its initial price) at maturity.
• Investors receive back $65,000 worth of shares in the worst performer (100k x (1-0.35))
• Unrealised Return = $65k in shares - $72k invested = -7k (-9.73% ROI).

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1. Stropro. Scenarios are for explanatory purposes only.
2. Subject to credit risk of the issuer.
3. Wholesale investors only. All figures are illustrative. Review the issuer’s docs and seek tax/financial advice.
4. Product terms and pricing are indicative only and subject to change.

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