BNP BONUS Coupons Series 5

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BNP BONUS Coupons- Series 5
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AGENDA

• The Product (page 3)
• Option Indicators
• Focus on the 10-yr BONUS Coupons Note
• Advantages and risks
• Overview of BNP Paribas (page 14)
• BNP Paribas Group
• Corporate and Investment Banking
• Equity Derivatives
• Overview of the Corporate Investment Banking
  Division (page 17)
• Why CSI chose PCP
• Other Products
• Development
• CSI Contact details

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• The Product
• Option Indicators
• Focus on the 10-yr BNP BONUS Coupons Product
• Advantages and risks

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WIN-WIN Option B KEY FEATURES

• A 10-year Euro Medium Term Note (EMTN) issued AND
  Guaranteed by BNP Paribas

• 100 Capital Guaranteed at maturity

• Potential 25 Coupon BONUS payable annually,
  linked to the performance of 20 international
  quality stocks

• A Final year feature all 25 coupon bonuses
  not earned in any of the first nine years can be
  earned back in the last year
• All returns are dependent upon terms of a
  principally protected note issued by BNP Paribas.
  Returns are Net. All returns, bonus coupons,
  stocks and the barrier level will vary according
  to market conditions. We will revert before
  issuing a note should prevailing conditions cause
  any (or all) of the features and benefits to be
  adversely affected by more than 25 from this
  illustration, the pricing supplement, and
  indicative conditions and pricing.

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SAMPLE INDICATIVE TERMS AND CONDITIONS

• Issuer BNP Paribas
• Issue form Euro Medium Term Note (EMTN)
• Trade, Issue
  
  
  
  
  
  
  Maturity Dates ALL to be declared
• Notional Amount UD 5,000,000
• Denominations UD 10,000
• Issue Price 100
• Coupons Bonus Coupon
• Bonus Coupon 25 if none of the daily closing
  levels of the 20 stocks in the Basket are
  below the Barrier during the 12 months preceding,
  coupon payment 0 otherwise.
• Final Year Bonus All Bonus Coupons not earned
  in any of the first nine years can be earned in
  yr-10
• Basket Composed of 20 stocks
• Barrier 75 of the closing level of each
  stock in the Basket on Issue Date
• Redemption at maturity 100

The information contained herein is provided to
you by BNP Paribas on a strictly confidential
basis. Any prices or examples of possible
transactions contained in this document are set
out for illustrative purposes only and do not
constitute any form of offer from BNP Paribas to
trade on such terms or constitute an indication
that it is possible to trade on those precise
terms. It is also understood that all information
given by BNP Paribas related to the terms and
conditions of a financial transaction shall not
be considered investment advice or as a
recommendation to enter into that transaction.
Actual prices will depend on market conditions at
the time the transaction is concluded. BNP
Paribas will not assume any responsibility for
the financial consequences of the client trading
in the financial transactions described in this
document.
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WIN-WIN NOTE AN EXAMPLE(based on previous
series issued)

• In this example
• You would receive 2 coupons of 0

and 8 coupons of 25

• AND, with Final-BONUS, you would also receive
  at maturity 2 additional 25 coupons

TOTAL COUPONS 250
75
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BACK-TESTING METHODOLOGY(based on previous
series issued)

• A quick word on methodology used
• BNP Paribas collected daily closing levels of the
  stocks in the Basket since January 4, 1988
• First simulation
• BNP observed what the coupons of the Win / Win
  Note would have been, assuming the product was
  launched on January 4,1988 with a maturity date
  on January 4, 1998, and given the variations of
  the 15 stocks in the Basket during this period
• Following 1,244 simulations
• BNP performed the same simulations assuming the
  Win / Win Note was launched on January 5, 1988,
  then January 6, January 7, and so on until
  October 22, 1992
• Results
• Finally, we sorted the results of these 1,245
  simulations from the worst to the best
  performing, and obtained the following results

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OUTSTANDING BACK-TESTING RESULTS

• Exceptional historical results
• You would have received 7 or more bonus
  coupons, in over 97 of cases
• In more than 19 of cases, you would have
  received all of the ten bonus coupons i.e.
  without using your second chance option

• In all cases, you would have received 100 of
  maximum performance with your Final-BONUS
  option

• The above results illustrate the historical
  background of the products performances.
• The provision of any historical performance
  analysis is not an indication of future
  performance and should not be viewed as such

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COMPARATIVE RISK / RETURN PROFILE
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EXAMPLE OF QUALITY INTERNATIONAL STOCKS(Stocks
will vary between EMTN issues)

• Example of international Blue Chips with an
  average market capitalization of USD 47bn

WIN WIN Key Features

• Exposure to high quality stocks

• Low level market risk

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COMMITMENT TO LIQUIDITY

• Similarly, BNP Paribas pride themselves on their
  secondary market setup, designed to offer all
  investors the utmost level of service during the
  life of their investments
• Everyday buyback commitment over the full life of
  the investment (after the first anniversary of
  the issue date)
• Minimum UD20,000
• Maximum None
• Penalty None
• Early redemption arrangement fee up to 1 on the
  amount redeemed

during normal market hours and in normal market
conditions
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ADVANTAGES AND RISKS
STRENGTHS
WEAKNESSES
100 Capital GUARANTEED

• A highly-rated investment
• A 100 Capital Guarantee at maturity
• High Bonus Coupons
• A Basket of top quality stocks
• An excellent opportunity to earn back the high
  coupons you may not have earned
• Exceptional historical results
• Guaranteed liquidity by
• No/Low risk investment
• Structured products are core markets for BNP
  Paribas

• Like virtually all bonds or structured products,
  WIN-WIN is only capital-guaranteed at maturity
• The past is no guarantee of the future.

High minimum coupons and potential for much
more...
...Trustworthy
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KEY FEATURES - SUMMARY

• 10-yr investment term with full liquidity on a
  daily basis
• Capital fully GUARANTEED by
• Annual bonus pay out of 25 subject to basket of
  stocks remaining above the barrier
• Final-BONUS feature to earn back ALL 25
  Bonuses of any missed in earlier years, at the
  end of final year
• Minimum investment of UD250,000 (Smaller for PPB
  Applications)
• Simple application process
• 5 placement fee
• 12.5 performance fee

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2. OVERVIEW OF BNP PARIBAS

• BNP PARIBAS GROUP
• CORPORATE AND INVESTMENT BANKING
• EQUITY DERIVATIVES

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THE BANK FOR A CHANGING WORLD

• The most profitable bank in the Euro-zone
• No. 1 Market Capitalization in Eurasia - EUR 44.4
  billion
• with H1 2004 net income of EUR 2.62
  billion
• BNP Paribas is one of the most efficient banks in
  Continental Europe
• With sustained profitability growth, a return on
  equity of
• 18.5 and a cost/income ratio of 60.3 for H1
  2004
• More than 89,000 staff
• 85 countries
• Long-term debt ratings
• Moodys Aa2 Stable outlook
• Standard Poors AA Stable outlook
• Fitch AA Stable outlook

with a global presence
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LEADER IN EQUITY- LINKED STRUCTURED PRODUCTS

• More than 400 professionals worldwide in
  structuring, sales trading
• Trading in indices and single stocks options in
  all major markets
• Dedicated index and stock basket trading team
• Structured product group of 75 specialists
  focused on designing, structured and pricing
  complex transactions
• Dedicated fund derivatives team specialized in
  risk management of derivatives on mutual and
  alternative investment funds

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3. WHY CSI CHOSE PCP!

• CSI PCP
• PCP Products
• Development
• CSI Contact details

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CSI PCP INVESTMENT MANAGEMENT

• CSI We give clients what they are asking for!
• PCP A Marketing and Fund Management Group
• Founded in 1996
• PCP specialise in new product innovation and
  bespoke product design
• Both retail and institutional clients
• Guaranteed Products
• With insured returns
• Corporate and Investment Banking Division
• For the development of products for major
  institutional clients

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CSI PCP INVESTMENT MANAGEMENT

• PRODUCTS AND ACHIEVEMENTS
• Asset Allocation Committee
• Via the Worlds leading fund managers
• Fund of Funds Approach
• Funds in top quartile and better
• More Products
• The CSI 160-GROWTH Account UD Investment with
  Capital GUARANTEE
• The CSI 190-WEALTH Account Discretionary
  Portfolio Management with Capital GUARANTEE
• Income Protector Guaranteed income with BNP
  Paribas
• Euro Plus short term Euro investment with
  guarantee and potential growth in conjunction
  with BNP Paribas

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CSI PCP INVESTMENT MANAGEMENT

• Our policies of continuous market research
  means that new products with major companies are
  always being developed to meet the needs of
  investors.
• Major Institutions and Corporations with whom we
  collectively have developed products include
• Credit Suisse
• Royal Bank of Canada
• HSBC
• Morgan Stanley Quilter
• BNP Paribas

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CSI CONTACT DETAILS

• Road Town, Tortola, BRITISH VIRGIN ISLANDs
• Tel [phone]
• UK Tel [phone] Fax [phone]
• Offshore Investment Consulting
• Trevor Grose MA MSI MIFP AOI FPS
• email chairman_at_charlestirling.com
• www.charlestirling.com