NAB Principal Series ASX 200 Index Investment Wealth Management - PowerPoint PPT Presentation

1 | PDE 1309 NAB Principal Series ASX 200 Index Investment Wealth Management Offer Period Offer Open – 11 May 2009 Offer Close – 25 June 2009 Arranger & Structuring: National Australia Bank Limited 1 | PDE 1309

2 | PDE 1309 General Advice Warning Any advice contained in this document has been prepared without taking into account your objectives, fjnancial situation or needs. Before acting on any advice in this document, National Australia Bank Limited recommends that you consider whether it is appropriate for your circumstances. If you are classifjed as a “Retail Client” under the Corporations Act and the advice contained in this document relates to “Financial Products” which NAB has approved for sale to Retail Clients, NAB recommends you consider the Product Disclosure Statement or other disclosure document, available from NAB for Retail Clients, before making any decisions regarding any product. National Australia Bank Limited ABN 12 004 044 937 is the product issuer, unless otherwise specifjed.

3 | PDE 1309 the issue date. Participation rate will be fjxed throughout the 5.5 year term. through the Superannuation compliant NAB Limited Recourse Loan 5. Opportunity for investors to borrow up to 70% of the initial investment NAB Investment Loan (subject to approval). 4. Opportunity for investors to borrow up to 100% of the initial investment through companies by market capitalisation. 3. Capital growth potential through a diversifjed exposure to Australia’s largest 2. Participation in NAB ASX 200 Investments of between 105% and 120% set on NAB ASX 200 Investments 1. Capital security through the NAB guarantee amount if held to maturity. NAB ASX 200 Investments have the following benefjts: NAB guarantee amount at maturity. Australia’s largest listed entities while still providing the safety of the NAB ASX 200 Investments provide exposure to the capital growth of Investment objective (subject to approval).

4 | PDE 1309 INveStmeNt PRIcINg Either $1.00 or $0.85 per Investment available at maturity depending on whether a AmouNt NAB guARANtee Lonsec recommended ReSeARch the Maturity Date. The averaging process mitigates single day price risk to investors. The average of 13 monthly observations over the last year starting 12 months before mAtuRIty AveRAgINg This smooths the entry point for investors. The average of 13 monthly observations over the fjrst year starting on the Issue Date. StRIke AveRAgINg Available monthly (solely at NAB’s discretion), an early withdrawal fee will apply. eARLy wIthdRAwAL Monthly $10,000 Key Features mINImum INveStmeNt $1.00 per Investment ISSue PRIce 5.5 years teRm Fixed participation rate of between 105% and 120% (to be set on the issue date). PARtIcIPAtIoN RAte entities by market capitalisation (at the date of the Product Disclosure Statement). Units in SPDR S&P/ASX 200 Fund or shares or units in one of the 10 largest ASX listed deLIveRy ASSet Deferred Purchase Agreement StRuctuRe S&P/ASX200 Index RefeReNce INdex trigger event occurs (See the Product Disclosure Statement for more detail).

5 | PDE 1309 NAB ASX 200 Investment will not be less than: The trigger event takes advantage of the current high market volatility. NAB ASX 200 Investments, while still using a very simple and transparent structure. • To provide fjxed minimum capital returns together with fjxed participation in Why is a trigger event used? • $0.85 if a trigger event occurs during the term. • $1.00, if no trigger event occurs during the term; or • What is a trigger event? Irrespective of how the index performs over the term, the maturity amount of each $1 you invest; if a trigger event occurs, your maturity amount will be reduced by $0.15 for each issue date) for the term of your investment even if a trigger event occurs, although • Your participation rate will be fjxed at between 105% and 120% (to be set on the (ie there has been a fall of 35% or more); date, the level of the index is at or below 65% of its level on the issue date • A trigger event occurs if, at the ASX closing time on any date before the maturity •

6 | PDE 1309  $.  date Maturity  . . date      $. Examples of the return Issue  Issue  Example 3: Index decreases over the term, a trigger event occurs Example 2: Index decreases over the term, no trigger event Example 1: Index increases over the term, no trigger event $.  date Maturity . $.  .      date  Example 4: Index increases over the term, a trigger event occurs    .  .   Issue   $.  date Issue of the investment at maturity date Maturity .  date Maturity  .  date     $.   Index Index NAB Guarantee Amount NAB Guarantee Amount Level Level at Maturity per $ at Maturity per $ trigger event Index Index NAB Guarantee Amount NAB Guarantee Amount Level Level at Maturity per $ at Maturity per $ trigger event

7 | PDE 1309 , // // // // , , , , , // , s&p/ASx 200 index performance source: IRESS 0.98 Brambles Limited 1.12 Macquarie Group Limited 1.16 // // 1.21 // occurrence of a trigger event and because the return on NAB ASX 200 Investments does not take into account any and last year of the term, the impact of the participation rate, the application of the NAB guarantee amount, the be substantially different from the performance of the index over the term because of index averaging over the fjrst to the future performance of the index or NAB ASX 200 Investments. The return on NAB ASX 200 Investments may calculation methodology of the index on 31 March 2000. Past performance of the index is not necessarily a guide The above graph illustrates the performance of the index. S&P offjcially acquired the licence and maintenance of the source: IRESS S&P/ASX  ClosePrice // // // // // // // // // // // Santos Limited Foster’s Group The ASX 200 index? weighting 4.72 National Australia Bank 6.23 Commonwealth Bank 6.67 Westpac Banking Corp 13.34 BHP Billiton Limited Security name 4.15 which make up approximately 67% of the index. • The top twenty constituents of the index as at 30 April 2009, • The index covers approximately 78% of the ASX market capitalisation. the performance of 200 of the largest index eligible stocks listed on the ASX by market capitalisation. • The Standard & Poor’s / Australian Securities Exchange 200 Index is a capitalisation weighted index measuring Telstra Corporation ANZ Banking Group Limited 1.22 RIO Tinto Limited AMP Limited 1.70 Origin Energy 1.72 Newcrest Mining 2.14 Woodside Petroleum 2.20 2.48 4.10 CSL Limited 2.61 QBE Insurance Group 2.68 Westfjeld Group 3.13 Wesfarmers Limited 3.91 Woolworths Limited dividends or distributions paid on the shares and units that make up the index.

8 | PDE 1309 10 February 2010 143 10 September 2014 107 10 March 2010 141 10 August 2014 104 134 109 10 July 2014 106 10 January 2010 132 10 June 2014 99 10 December 2009 128 10 April 2010 10 October 2014 100 103 index level Ending average 102.9231 index level Starting average 150 10 January 2015 10 July 2010 143 147 10 December 2014 105 10 June 2010 143 10 November 2014 105 10 May 2010 10 May 2014 10 November 2009 Hypothetical index averaging example Based on these 26 be 136.9. average index level would be 102.9 and the ending average index level would observations, the starting hypothetical index • table below. Index the term as set out in the in the fjrst and last years of observations of the index 2015 and 26 hypothetical maturity date of 10 January issue date of 10 July 2009 a • This example assumes an date level 125 132 10 April 2014 101 10 October 2009 134 10 March 2014 100 10 September 2009 10 February 2014 date 99 10 August 2009 130 10 January 2014 100 10 July 2009 level Index 137.0769

9 | PDE 1309 a trigger event occurs during the term, i.e. the index falls to or below 65% of the total investment maturity amount of your = $1.1984 per NAB ASX 200 Investment $1 + ($1 × ((137.0769 - 102.9231) / 102.9231) × 1.05) - $0.15 NAB ASX 200 Investment maturity amount per the maturity amount of your investment would be calculated as follows: actual index level at the ASX closing time on the issue date, • • Maturity Amount example: the participation rate is 105%; and • the ending average index level is 137.0769; • the starting average index level is 102.9231; • you invest $10,000; If: A trigger event occurs $11,984 ($1.1984 × 10,000)