Currency Linked Investments

Product OverviewName and Product TypeCurrency Linked Investment (CLI) is an investment product with a combination of the Customer’s deposit and selling option transactions. CLI may be tailored to suit the needs of the Customer, based on the Customer’s choice of currency pairs, the strike rate, tenor, and Customer’s risk appetite.Name of IssuerPT Bank DBS IndonesiaProduct Characteristics

On maturity date, the Customer will receive the initial investment plus the returns in the placement currency or the alternative currency of the initial pair of currencies chosen at the date of the transaction.

The principal investment value is not protected, and the Customer could potentially lose the value when the Customer’s money is converted to an alternative currency at the end of the period. The conversion will refer to the determined strike rate at the date of the transaction.

The return will be at a fixed value and delivered at the end of the period.

Placement period is ranged from 7 (seven) calendar days up to 6 (six) months.

Available only in foreign currencies, among others EUR, GBP, AUD, NZD, USD.

CLI VariantCLI has one variant, that is CLI Knock-In Knock-Out (KIKO), where conversion at CLI KIKO will take place when the following three conditions are met:

The spot value never touches the Knock-Out (KO) level during the observation period,

The spot value touches the Knock-In (KI) level during the observation period, and

On the predetermined date and hour, the alternative currency is weaker than the conversion level (strike rate).

BenefitCustomer has higher return potential compared to traditional time deposit.Main Risks

CLI and CLI KIKO are a non-principal protected product at maturity. The Customer should not treat the CLI and CLI KIKO as a substitute for ordinary savings or fixed deposits.

CLI and CLI KIKO are meant to be held until maturity. There might be loss occurs when Customer redeem the investment before maturity date (depends on valuation from bank on early redemption date), and the Bank shall be entitled to deduct any losses that might be incurred from the redemption, as CLI and CLI KIKO are not a negotiable or transferable instrument.

If the Customer converted to alternate currency, the Customer should understand that a substantial foreign exchange loss may incurred if the Customer converts the aggregate amount received at maturity back to the Base Currency at the time when the Base Currency is continuing to appreciate against the Alternate Currency.

Requirements & ProceduresSome requirements to be fulfilled by Customer to subscribe CLI and CLI KIKO:

Customer must have fund in form of cash, savings or fixed deposit amounting IDR 5,000,000,000 (five billion) or equivalent.

Customer must have account in PT Bank DBS Indonesia.

Customer must complete risk profile and make sure the product purchased suitable with Customer’s risk profile.

CLI Simulation

Assumption

Principal Amount

AUD 100,000.00

Base Currency

AUD

Alternate Currency

USD

Tenor

7 Days

Spot Rate

0.7704

Strike Rate

0.7800

Payout Rate

1.50%

Scenario 1 (Best Scenario)On Fixing Date & Time, Spot Rate AUD/USD is lower than Strike Rate.On the Maturity Date,(a) the Final Redemption Amount = AUD 100,000.00(b) the Payout Amount

= Principal Amount x Payout Rate x (Tenor/365)

= AUD 100,000.00 x 1.50% x (7/365)

= AUD 28.77 gross

= AUD 23.01 net of tax

The Customer shall receive on the Maturity Date, an aggregate sum of the Final Redemption Amount and Payout Amount for total AUD 100,023.01Scenario 2 (Worst Scenario)On Fixing Date & Time, Spot Rate AUD/USD is equal to or greater than Strike RateOn the Maturity Date,(a) The Final Redemption Amount

= Principal Amount x Strike Rate

= AUD 100,000.00 x 0.7800

= USD 78,000

(b) The Payout Amount

= Principal Amount x Payout Rate x (Tenor/365)

= AUD 100,000.00 x 1.50% x (7/365)

= AUD 28.77 gross

= AUD 23.01 net of tax x 0,7800

= USD 17.95 net of tax

The Customer shall receive on the Maturity Date, an aggregate sum of the Final Redemption Amount and Payout Amount for total USD 78.017,95.At the worst scenario, the Customer may suffer a substantial foreign exchange loss if the Customer converts the amount in alternate currency (USD) received at maturity date to base currency (AUD) in the condition where the base currency is appreciating against the Strike Rate.Example:
Spot Rate AUD/USD on Maturity Date 0.7950, if the Customer convert back USD 78,017.95 to base currency (AUD), therefore Customer will get USD 78,017.95 / 0.7950 = AUD 98,135.79 which the Customer suffer loss amounting AUD 1,864.21 if compared to principal amount AUD 100,000.00.

CLI KIKO Simulation

Assumption

Principal

AUD 100,000.00

Base Currency

AUD

Alternate Currency

USD

Transaction Date

1 September 2020

Value Date

3 September 2020

Fixing Date

1 December 2020

Maturity Date

3 December 2020

Observation Period

1 September 2020 - 1 December 2020

Tenor

3 months

Spot Rate

0,7526

Strike Rate

0,7530

Knock-Out Rate

0,7680

Knock-In Rate

0,7230

Payout Rate

1,36% p.a.

Premium

0,40% flat

Scenario 1 - KO Level Hit on 28 October 2020

On Value Date, Customer will get:

Premium = Premium * Principal = 0.40% * AUD 100,000.00 = AUD 400

On 30 October 2020, Customer will receive AUD 100,169.90 Net with details as follow:

Principal = AUD 100,000.00
Payout = Principal * Payout Rate * Day Count/365 = AUD 100,000.00 * 1.36% * 57 / 365 = AUD 212.38 Gross = AUD 169.90 Net

Scenario 2 - Knock-Out & Knock-In Level never hit during observation period

On Value Date, Customer will get:

Premium = Premium * Principal = 0.40% * AUD 100,000.00 = AUD 400

On Maturity Date, Customer will receive AUD 100,271.26 Net with details as follow:

Principal = AUD 100,000.00
Payout = Principal * Payout Rate * Day Count/365 = AUD 100,000.00 * 1.36% * 91 / 365 = AUD 339.07 Gross = AUD 271.26 Net

Scenario 3 - Knock-In Level Hit on before Fixing Date and on Fixing Date 13.00 WIB Spot Rate hit or above Strike Rate

On Value Date, Customer will get:

Premium = Premium * Principal = 0.40% * AUD 100,000.00 = AUD 400

On Maturity Date, Customer will receive principal in alternate currency amounting USD 75,300 and payout in base currency amounting AUD 271.26 Net with details as follow:

Principal = Principal * Strike Rate = AUD 100,000.00 * 0.7530 = USD 75.300
Payout = Principal * Payout Rate * Day Count/365 = AUD 100,000.00 * 1.36% * 91 / 365 = AUD 339.07 Gross = AUD 271.26 Net

Scenario 4 - Knock-In Level Hit on before Fixing Date and on Fixing Date 13.00 WIB Spot Rate below Strike Rate

On Value Date, Customer will get:

Premium = Premium * Principal = 0.40% * AUD 100,000.00 = AUD 400

On Maturity Date, Customer will receive AUD 100,271.26 Net with details as follow:

Principal = AUD 100,000.00
Payout = Principal * Payout Rate * Day Count/365 = AUD 100,000.00 * 1.36% * 91 / 365 = AUD 339.07 Gross = AUD 271.26 Net

Scenario 5 - Worst ScenarioIf the Customer requests for an early withdrawal of the CLI KIKO in accordance with the early withdrawal requirements and the Bank agrees to the Customer's request, the Customer will receive an early withdrawal amount determined by the Bank. Such early withdrawal amount will usually be substantially less than 100% of the Principal Amount and in the worst-case scenario, such early withdrawal amount is zero. The Customer will not receive any quarterly payout following such early withdrawal.

IMPORTANT
Dates, rates mentioned and all calculation above are for illustration only. Those information and numbers are not the representative of the actual performance or future performance of this product.