What is SMILE ELN?

It is a type of ELNs with an investment period of 3 - 6 months, which allows you to earn a higher return than general notes investment. However, your return will be based on the underlying asset, investment horizon, strike level and knock-out level.

Callable Fixed-Coupon Note or Smile ELN is similar to KIKO ELN product in which offers a steam of cash flow monthly. However, SMILE ELN can be investing in basket. Investor can choose up to 3 favorable shares in which increase equity exposure of any shares in the basket at a substantial at discount value.

Why SMILE ELN?

• Higher annual return than other fixed-income securities with your chosen risk-level.
• Create an opportunity to buy stocks at prices lower than the current market price.
• Opportunity on high yield on short term investment during market sideways.
• Earning higher yield in term of monthly coupon

---

More about SMILE ELN

---

Who is suitable for SMILE ELN?

• Investors who want to accumulate favorable stocks a few at a time.
• Investors with risk tolerance who want to generate high return.

Maximum profit and loss for SMILE ELN

• Highest Profits = Yield depending on your chosen risk-level
• Highest Losses = Standard Investment in stock market when receive stock back at Strike Price

Calculation Examples

After the investor has opened an ELN account, the first thing investor needs to know before start investing in ELNs must be the prices and yields of our products. Investors can follow up on the indicative price sheet of SMILE ELN and seeking additional advice from the investment advisor.

Pricing Sheet

Pricing Sheet : SMILE ELN
Trade Date	17 August 2020	Strike Level (%)	88%
Issue Date	19 August 2020	Notional Amount	30,000,000 บาท
Valuation Date	17 February 2020	Settlement Method	Physical / Cash Delivery
Maturity Date	19 February 2020	No. of holding days	92 Days

Underlying	Spot Price (THB)	Knock-out Level (THB)	Knock-out Price (THB)	Strike Level (%)	Strike Price(THB)	Annualized Yield (Before Tax)	Number of shares for delivery
AAA	54	102%	55.08	88%	47.52	12.00%	631,313.131313
BBB	14		14.28		12.32		2,435,064.935065

Remark:
Spot Price is the AAA and BBB share close price in the day before (14 August 2020). The example price sheet will only be use for calculation reference. It is not the actual price that investor will get. Knock-out level, Strike level, Annualized yield, and Issue price are the only factors that investor will get from the pricing sheet. (These factors do not depend on the spot price.)

When you start investing in ELN, we will call this date “Trade Date”

1. Trade Date (17 August 2020)
Assume you choose AAA and BBB stock at 88% Strike level, Notional amount of 30 million Baht, and Spot price of 54 and 14 Baht.
Strike Price	47.52 Baht (88% of AAA Share Spot Price)
	12.32 Baht (88% of BBB Share Spot Price)
Notional Amount	30,000,000 Baht
Knock-out Price	55.08 Baht (102% of AAA Share Spot Price)
	14.28 Baht (102% of BBB Share Spot Price)
No. of Shares that will be delivered	631,313.131313 Shares (30,000,000/54)
	2,435,064.935065 Shares (30,000,000/14)
Annualized Yield (Before Tax)	12%
Return (Before tax)	300,000 Baht [30,000,000 x (12% / 12)]
No. of holding days	92 Days

2. Issue Date (19 August 2020) is Trade Date 2 Working Days
Money will be transfer to CIMBS account for buying SMILE ELN
Notional Amount	30,000,000 Baht

3. Observe Date is viewing yield date 2 Working Days
Observe Date is the price viewing date to determine the return that investors will receive every 1 month until the Valuation Date, the investor may receive different returns in each scenario. Giving an example of 4 cases as follows.
Case 1 (47.52 > AAA < 55.08) (12.32 > BBB < 14.28) Strike Price > Spot Price < Knock-out Both stock price in the basket does not occur KO Event and Strick Price during Observation date (until Valuation Date).	Investor receive 30,000,000 Baht in cash and Monthly Return of 3 month 900,000 Baht in cash (300,000 x 3 )
Case 2 ( AAA > 55.08) (BBB > 14.28) Spot Price > Knock-out Early redemption event taken when both of the stock price in the basket does occur KO Event in the second month of Observation date.	Investor receive 30,000,000 Baht in cash and Monthly Return of 2 month 600,000 Baht in cash (300,000 x 2 )
Case 3 ( AAA > 47.52) (BBB < 12.32) AAA Spot Price > Strike Price, BBB Spot Price < Strike Price One of the stock prices in the basket is equal or lower than Strike Price (an example if as BBB share is lower than Strike Price)	Investor receive 2,435,000 BBB Shares and 800 Baht in cash (Odd lot 64.935065 x 12.32) and Monthly Return of 3 month 900,000 Baht in cash (300,000 x 3 )
Case 4 ( AAA < 47.52) (BBB < 12.32) Both Spot Price < Strike Price Both of the stock prices in the basket are equal or lower than Strike Price. Least performance share in the basket will be choosing (an example if as AAA share is the least performance).	Investor receive 631,300 AAA Shares and 624 Baht in cash (Odd lot 13.131313 x 47.52) and Monthly yield of 3 month 900,000 Baht in cash (300,000 x 3 )

4.Valuation Date (17 February 2020)
The valuation date is the final date to summarizing the returns that investors will receive But if the stock price does occur KO Event (example in Case 2), the investor will receive a return according to an early redemption date.

5. Maturity Date (19 February 2020)
Investor receive return according to the case in Valuation Date

Overall Return

Disclaimer:

The Structured Note is offered to High-Net-Worth investors (HNW), Ultra High-Net-Worth (UHNW) and institutional investors (II). It is a high-risk and complex product. The value of the Structured Note depends on uncertain factors. Investors may lose the principal in whole or part or receive lower-than-expected returns. Structured Notes do not have a secondary market for trading and have transfer restrictions as specified by the terms and conditions. Please understand the product's characteristics, the conditions of return, and the risks involved, and seek additional advice before making an investment decision.