Vontobel is a Swiss bank specializing in asset management and investment banking. The presentation discusses using Knock-Out Warrants to trade short-term market trends, how to select interesting warrants, and compares Knock-Out Warrants to Bull and Bear certificates. It provides an example of a Knock-Out Warrant on Nokia stock and how its value would change based on Nokia's share price. The presentation emphasizes that Knock-Out Warrants involve risk of total loss if the barrier is reached and the leverage works in both directions.

1. Leistung schafft Vertrauen
Knock-Out
Warrants Open End?
How to invest in
31 May 2016
Heiko Geiger,
Bank Vontobel Europe AG

2. 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
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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.
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Publisher: Bank Vontobel Europe AG, Frankfurt am Main branch, Bockenheimer Landstrasse 24, 60323 Frankfurt am Main, Germany.
Copyright© 2016 Vontobel. All rights reserved.
Seite 2

3. Vontobel – Performance creates trust
 Presentation of the Vontobel Group
 Trading short trends with Knock-Out Warrants?
 How to select interesting Knock-Out Warrants
 Comparison: Knock-Out Warrants vs Bull & Bear Certificates
Seite 3

4.  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
 Headquarter in Zurich, 21 locations worldwide
 Around 1.400 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 187,2 bn
- Equity: CHF 1,40 bn
- CET1 capital ratio: 17,9%
- Dividend per share CHF 1,85 for 2016
Vontobel in brief
Global investment advisor with a long tradition and strong capital base
*as of 30 June 2015
10 September 2015
Slide 4

5. Our core capabilities
1. Protect and build wealth
3. Deliver tailor-made investment solutions
2. Manage assets actively
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.
We implement tailor-made investment solutions for our clients. Additionally our
products and processes are based on the latest forward-looking research.
As active asset manager, we provide financial added value for our clients and
develop first-class solutions for return optimisation and risk management.
10 September 2015
Slide 5

6. Vontobel – Performance creates trust
 Presentation of the Vontobel Group
 Trading short trends with Knock-Out Warrants?
 How to select interesting Knock-Out Warrants
 Comparison: Knock-Out Warrants vs Bull & Bear Certificates
Seite 6

7. Seite 7
Trading short- and mid-term with Knock-Out Warrants
 Participating on clear market trends
 Opportunity to participate on price increases as well as decreases
of various underlyings (Call or Put)
 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
 Due to linear leveraged participation, also possbile to trade mid-
term time frame
 Flexible instrument for day trading as well as hedging and risk
management of longer term strategies

8. Seite 8Seite 8
Categorization of Leverage Products
Leverage Products
Warrants Knock-Out Products
Mini Futures (Open End)Knock-Out Warrants
Open EndLimited
Bull&Bear Certificates

9. Seite 9
Leverage Products: Opportunities & Risks
 Disproportional losses (Leverage
Effect)
 Total loss if barrier is reached
 Issuer risk
 No current income (e.g. dividends,
coupons)
 Disproportional gains (Leverage
Effect)
 Yields in increasing or decreasing
markets
 Open End allows mid-term and
long-term investments
 Tailor made leverage portfolio
position for every risk / return
profile
 No volatile influence on pricing
Opportunities Risks

10. Facts Investors must keep in mind
 Knock-Out leads to total loss
 Consider currency risk (e.g. underlying in USD, product in EUR)
 Consider Knock-Out hours of underlying (especially gold and oil)
 Have the ratio in mind while hedging your portfolio
Seite 10

11. Seite 11
Characteristics
Call
Strike < Rate
Price of Call Knock-Out
((Price of Underlying – Strike) / Ratio
Price of Put Knock-Out
((Strike – Price of Underlying) / Ratio
Leverage of Knock-Out
(Price of Underlying / Price of Knock-Out Warrant) / Ratio
 Strike = Knock-Out Barrier
 Opend End
 Ratio
 LeveragePut
Strike > Rate

12. Vontobel – Performance creates trust
 Presentation of the Vontobel Group
 Trading short trends with Knock-Out Warrants?
 How to select interesting Knock-Out Warrants
 Comparison: Knock-Out Warrants vs Bull & Bear Certificates
Seite 12

13. Seite 13
How to select Knock-Out Warrants?
- Investment Term!
- Underlying?
- Expectations Call or Put?

14. Seite 14Seite 14
 Nokia is a major communications and IT company
 5.5 bn EUR turnover in Q1 2016
 2.47 bn EUR net profit in 2015
 104,000 employees
 Nokia serves customer in over 100 countries across the world.
 Despite a negative balance sheet Nokia sold its mobile phone section to Microsoft
and will focus on grid expansion
 New comeback of Nokia could be imminent – Nokia bought the French consumer
electronic company, Withings, specialized in wearables and data evaluation
Investment Idea: Nokia OYJ

15. Example: T LONG NOKI V31 (DE000VS0GXZ8)
Seite 15
Source: Bloomberg, www.vontobel-zertifikate.de *Date: 31.05.2016
Knock Out Warrants are financial products, which involve a high degree of risk. Past performance is not a guide to future performance and should not be the sole factor of
consideration when selecting a product. Returns can as a consequence of fluctuations in exchange rates, raise or drop. Of importance are the respective prospectuses which are
attainable from the issuer: Vontobel Financial Products GmbH, Bockenheimer Landstrasse 24, DE-60323 Frankfurt am Main, Germany, as well as from https://certificates.vontobel.com .
T LONG NOKI V31
ISIN: DE000VS0GXZ8
Type: Call
Strike: EUR 3,7949
Knock-Out-Barrier: EUR 3,7949
(Distance*: 25,34%)
Leverage: 3,80
Duration: Open End
Ratio: 1:1
Nokia*: EUR 5,12
Ask*: EUR 1,33
Time
Nokia share(EUR)
0
1
2
3
4
5
6
7
8
02.05.2011 02.05.2012 02.05.2013 02.05.2014 02.05.2015 02.05.2016
Strike / KO

16. Example: T LONG NOKI V31 (DE000VS0GXZ8
0
2
4
6
8
Tag Monat JahrAutor, Version Seite 16
T LONG NOKI V31
Source: Bloomberg, www.vontobel-zertifikate.de *Date: 31.05.2016
Knock Out Warrants are financial products, which involve a high degree of risk. Past performance is not a guide to future performance and should not be the sole factor of
consideration when selecting a product. Returns can as a consequence of fluctuations in exchange rates, raise or drop. Of importance are the respective prospectuses which are
attainable from the issuer: Vontobel Financial Products GmbH, Bockenheimer Landstrasse 24, DE-60323 Frankfurt am Main, Germany, as well as from https://certificates.vontobel.com .
ISIN: DE000VS0GXZ8
Type: Call
Strike: EUR 3,7949
Knock-Out-Barrier: EUR 3,7949
(Distance*: 25,34%)
Leverage: 3,80
Duration: Open End
Ratio: 1:1
Nokia*: EUR 5,12
Ask*: EUR 1,33
Strike / KO

17. Seite 17
 Underlying
 Direction
 Strike
How to choose a Knock-Out Warrant

18. Seite 18
 Underlying
 Direction
 Strike
How to choose a Knock-Out Warrant
T LONG NOKI V31

19. Performance of Knock-Out Warrants
Seite 19
 Term: Open End
 Ratio: 1:1
 Ask: 1,33 EUR
 Nokia Share: 5,12 EUR
 Leverage: 3,80
 Strike / KO: 3,7949 EUR
Product characteristics
Price:
((6,00 – 3,7949) / 1) = 2,2051 €**
Leverage:
((6,00/2,2051) / 1) = 3,7949
Price:
((4 – 3,7949) / 1) = 0,2051 €**
Leverage:
((4/0,2051) / 1) = 19,50
Shares rise to EUR 6
Shares drop to EUR 4
*Date: 31.05.2016, **Past performance is not a guide to future performance and should not be the sole factor of consideration when selecting a product. Please notice that in case of an investment
in this product , the investor is not entitled to receive dividend. The Products are not capital protected, under certain circumstances you may sustain a total loss of investment. Investors bear the
credit risk of the issuer.

20. Vontobel – Performance creates trust
 Presentation of the Vontobel Group
 Trading short trends with Knock-Out Warrants?
 How to select interesting Knock-Out Warrants
 Comparison: Knock-Out Warrants vs Bull & Bear Certificates
Seite 20

21.  Investors can participate disproportionately on stable (positive or negative) price trends
 Special strengths in stable trends
 Although they offer opportunities for disproportionately high gains, the leverage works in both
directions and can also result in disproportionately heavy losses
Bull & Bear certificates – Investing with a
constant leverage
Seite 21
Characteristics of Bull & Bear certificates
Optimally harness stable price trends without
a fixed expiry
In normal market phases nearly no impact on
the pricing of the factor certificate due to
volatility
Constant leverage over the product’s lifetime
and a transparent structure due to the
underlying factor index
Application scenarios:
Not suitable for an alternately
rising and falling trend -> sideways
markets
Rising market trend:
Bull certificate (Long)
Declining market trend:
Bear certificate(Short)

22. Performance DAX vs Turbo & Bull & Bear
Period of 6 weeks & detailed view of 10 days
 Bull certificate offers much greater return possibilities to investors than a direct investment.
However, the leverage works both ways and heavy losses may occur.
 Short-term investment product to take part disproportionately of a stable trend
Quelle: Bloomberg, 17.05.2016
Past performance is not a guide to future performance and should not be the sole factor of consideration when selecting a product. Please notice that in case of an investment in this product , the
investor is not entitled to receive dividend. The Products are not capital protected, under certain circumstances you may sustain a total loss of investment. Investors bear the credit risk of the issuer.
60
80
100
120
140
160
180
DAX Index
BULL DAX X10
Turbo DAX x5
Turbo DAX x10
60
80
100
120
140
160
180
200
220

23. How to Hedge your Portfolio with Put Knock-out Warrants
Folie 23
 Knock-out Warrants can hedge your Portfolio
 EURO STOXX 50 value is 3.000 and portfolio value is 60.000 €
 EURO STOXX 50 falls 1 % or 30 points
 Portfolio constitution has to be similar with the EURO STOXX 50
Required amount of Put Knock-out Warrants
60.000
= 2.000 contracts
3.000 / 100
 Value of the portfolio is about 20*EURO STOXX 50
 1 EURO STOXX 50 point = 20 Euro
 EURO STOXX 50 fell 1%, then without hedging Portfolio‘s
value decrease by:
- 600€ (30 points * 20 €)
 Put Knock-out Warrants raises 0,01 EUR , when EURO
STOXX 50 drops 1 point :
+ 600€ (2000* (0.01 € * 30 points))

24. Seite 24
Bull & Bear Certificates vs Knock-Out Warrants
Bull & Bear Certificates Knock-Out Warrants
 Benefits from stable (positive or negative) price
trends
 Constant leverage (factor) over the product‘s
lifetime
 In normal market phases Volatility does not
have an impact on the pricing of the certificate
 No knock-out: only built-in barrier allowing for
an intraday adjustment
 The leverage works both ways (also if performance
takes a direction contrary to the market
expectation)
 The barrier cannot be seen as a buffer, since it
can only mitigate further losses
 The leverage works both ways (also if performance
takes a direction contrary to the market expectation)
 Knock-Out drive to a total loss of the invested capital.
 Possibility to generate disproportional returns
 Open-End products (e.g.: Mini-future) or limited term
product available (e.g.: Warrants)
 Increased volatility drive to increased premium
(Warrants)
 Invest in increasing or decreasing Markets.

25. Bull & Bear Matrix
Tag Monat JahrAutor, Version Seite 25

26. Bank Vontobel Europe AG
Frankfurt am Main
Bockenheimer Landstr. 24
60323 Frankfurt am Main
Germany
www.certificates.vontobel.com/FI/FI
Thank you for your attention and interest!
Heiko Geiger
Head of Public Distribution Europe
0800 91 77 91 (phone)
sertifikaatti@vontobel.com (mail)
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