Annex A The DAX® Index (Price Return)
We have derived all information contained in this pricing supplement
regarding the DAX® Index (Price Return), including, without limitation, its make-up,
method of calculation and changes in its components, from publicly
available information, without independent verification. This
information reflects the policies of, and is subject to change by,
Deutsche Börse AG ("Deutsche Börse"). The DAX® Index (Price Return) is calculated, maintained and published by
Deutsche Börse. Deutsche Börse has no obligation to continue to
publish, and may discontinue publication of, the DAX® Index (Price Return).
The DAX® Index (Price Return) is reported by Bloomberg L.P. under the ticker
symbol "DAXK."
The DAX® Index (Price Return) comprises the 30 largest and most actively
traded companies listed on the Frankfurt Stock Exchange. These
companies are selected from the continuously traded companies in the
Prime Standard Segment that meet certain selection criteria. To be
listed in the Prime Standard, a company must meet minimum statutory
requirements, which include the regular publication of financial
reports, and must satisfy additional transparency requirements. The
reference date of the Index is December 30, 1987.
The Index is capital-weighted, meaning the weight of any individual
issue is proportionate to its respective share in the overall
capitalization of all index component issuers. The weight of any
single company is capped at 10% of the Index capitalization, measured
quarterly. Weighting is based exclusively on the free float portion
of the issued share capital of any class of shares involved. Both the
number of shares included in the issued share capital and the free
float factor are updated on one day each quarter (the "chaining
date"). The Index is a price index, which measures the actual price
performance and is only adjusted for income from subscription rights
and special distributions.
Methodology of the Index
The Working Committee for Equity Indices and the Management Board of
Deutsche Börse
The Working Committee for Equity Indices (the "Committee") advises
Deutsche Börse on all issues related to the Index, recommending
measures that are necessary in order to ensure the relevance of the
Index range and the correctness and transparency of the Index
calculation process. In accordance with the various rules, the
Committee pronounces recommendations in respect of the composition of
the Index. However, any decisions on the composition of and possible
modifications to the Index are exclusively taken by the Management
Board of Deutsche Börse (the "Board"). These decisions are published
in a press release and on Deutsche Börse's publicly available website
at www.deutsche-boerse.com in the evening after the Committee has
concluded its meeting. Information contained in Deutsche Börse's
website is not incorporated by reference in, and should not be
considered a part of, this term sheet. We have not participated in
the preparation of, or independently verified, any information
contained on Deutsche Börse's website.
The Committee's meetings usually take place on the third trading day
in each of March, June, September and December. The date for the
respective next meeting is announced via a press release on Deutsche
Börse's website on the evening of the current meeting.
The so-called "equity index ranking" is published monthly by Deutsche
Börse, containing all relevant data in respect of the key criteria
order book turnover and market capitalization. This publication also
serves the Committee as a basis for decision-making at its quarterly
meetings. It is produced at the beginning of each month and published
via the Internet.
Free Float
For the determination of the free float portion used to weight a
company's class of shares in the Index and for the ranking lists, the
following definition applies:
1. All shareholdings of an owner which, on an accumulated basis,
account for at least 5% of a company's share capital attributed to a
class of shares are considered to be non-free float. Shareholdings of
an owner also include shareholdings:
|
♦ |
held by the family of the owner as defined by section §15a of the
German Securities Trading Act ("WpHG");
|
|
♦ |
for which a pooling has been arranged in which the owner has an interest; |
|
♦ |
managed or kept in safe custody by a third party for account of the owner; and |
|
♦ |
held by a company which the owner controls as defined by section
22(3) of the WpHG.
|
2. The definition of "non-free float"irrespective of the size of a
shareholdingcovers any shareholding of an owner that is subject to a
statutory or contractual qualifying period of at least six months
with regard to its disposal by the owner. This applies only during
the qualifying period. Shareholdings as defined by No. 1 above are
counted as shareholdings for the calculation according to No. 1.
Shares held by the issuing company (treasury shares) are always
considered as block holdings and are not part of the free float of
the share class.
3. As long as the size of such a shareholding does not exceed 25% of
a company's share capital, the definition of free float includes all
shareholdings held by:
|
♦ |
asset managers and trust companies; |
|
♦ |
investment funds and pension funds; and |
|
♦ |
capital investment companies or foreign investment companies in their
respective special fund assets
|