GUIDELINE
Cyber Security Performance Index

Version 1.3 dated December 08, 2022

Contents
Introduction
1 Index specifications
1.1 Short name and ISIN
1.2 Initial value
1.3 Distribution
1.4 Prices and calculation frequency
1.5 Weighting
1.6 Decision-making bodies
1.7 Publication
1.8 Historical data
1.9 Licensing
2 Composition of the Index
2.1 Selection of the index components
2.2 Ordinary adjustment
2.3 Extraordinary adjustment
3 Calculation of the Index
3.1 Index formula
3.2 Accuracy
3.3 Adjustments
3.4 Dividends and other distributions
3.5 Corporate actions
3.6 Miscellaneous
4 Definitions
4.1 Index-specific definitions
4.2 Other definitions
5 Appendix
5.1 Contact data
5.2 Calculation of the Index – change in calculation method

This document contains the underlying principles and regulations regarding the structure and the operating of the
Cyber Security Performance Index. Solactive AG shall make every effort to implement regulations. Solactive AG does
not offer any explicit or tacit guarantee or assurance, neither pertaining to the results from the use of the Index nor
the Index value at any certain point in time nor in any other respect. The Index is merely calculated and published by
Solactive AG and it strives to the best of its ability to ensure the correctness of the calculation. There is no obligationfor Solactive AG – irrespective of possible obligations to issuers – to advise third parties, including investors and/or
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financial intermediaries, of any errors in the Index. The publication of the Index by Solactive AG is norecommendation for capital investment and does not contain any assurance or opinion of Solactive AG regarding a
possible investment in a financial instrument based on this Index.

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Introduction
This document is to be used as a guideline with regard to the composition, calculation and management of the Index.
Any changes made to the guideline are initiated by the Committee specified in section 1.6. The Index is calculated
and published by Solactive AG. The name “Solactive” is trademarked.

1 Index specifications
The Cyber Security Performance Index (the “Index”) is an Index of Solactive AG and is calculated and distributed by
Solactive AG. The index tracks the price movements of stocks that derive substantial revenues from the Cyber
Security segment. The assessment and analysis of the Index are conducted by an Index Advisor (see section 4.2 of the
document).
The Index is adjusted semi-annually and constructed as a Performance Index
The Index is published in USD.

1.1 Short name and ISINThe Index is distributed under ISIN.VHACK >.

; the WKN is SLA1C1. The Index is published in Reuters under the code <1.2 Initial value
The Index is based on 100 at the close of trading on the start date, November 13, 2015.

1.3 Distribution
The Index is published via the price marketing services of Boerse Stuttgart AG and is distributed to all affiliatedvendors. Each vendor decides on an individual basis as to whether he will distribute/display the Index via his
information systems.

1.4 Prices and calculation frequency
The price of the Index is calculated on each Business Day based on the prices on the respective Exchanges on which
the Index Components are listed. The most recent prices of all Index Components are used. Prices of Index
Components not listed in the Index Currency are translated using spot foreign exchange rates quoted by Reuters.
Should there be no current price available on Reuters, the most recent price or the Trading Price on Reuters for thepreceding Trading Day is used in the calculation.

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The Index is calculated every Business Day from 9:00am to 10:30pm, CET and distributed every 60 seconds. In theevent that data cannot be provided to Reuters or to the pricing services of Boerse Stuttgart AG the Index cannot be
distributed.

1.5 Weighting
On each Adjustment Day each Index Component of the Index is weighted equally. The equal weighting is
implemented over a five-day period.

1.6 Decision-making bodies
A Committee composed of staff from Solactive AG and the Index Advisor is responsible for decisions regarding thecomposition of the Index as well as any amendments to the rules (in this document referred to as the "Committee“ orthe “Index Committee”). The future composition of the Index is determined by the Index Committee on the Selection
Days according to the procedure outlined in 2.1 of this document. The Committee shall also decide about the futurecomposition of the Index. if any Extraordinary Events should occur and the implementation of any necessary
adjustments.
Members of the Committee can recommend changes to the guideline and submit them to the Committee forapproval.

1.7 Publication
All specifications and information relevant for calculating the Index are made available on the
http://www.solactive.de web page and sub-pages.

1.8 Historical data
Historical data will be maintained from the launch of the Index on November 13, 2015.

1.9 Licensing
Licences to use the Index as the underlying value for derivative instruments are issued to stock exchanges, banks,financial services providers and investment houses by Solactive AG.

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2 Composition of the Index
2.1 Selection of the Index Components
The initial composition of the Index as well as any ongoing adjustment is based on the following rules:
On the Selection Days the Index Advisor determines the selection pool as follows:1.

2.

Substantial revenues in any of the following Cyber Security segments:•

Firewall Solutions•

Antivirus/Antimaleware•

Disaster/Recovery•

Digital Trust Services•

Content Security•

Cloud Security•

Encryption•

Secure Communication•

Web Filtering•

Anti Spamware•

Threat Management Security Solutions

High entry barriers measured based on•

High brand awareness•

Extensive Patent Protection•

Networks and Alliances creating high added value•

Uniqueness of the business model3.

Product attractiveness and market growth: The products and services of a company must serve a wide
market promising long-term and sustainable growth4.

Management quality

5.

International nature of a company’s business

From this selection pool Solactive AG then selects the 15 companies with the largest market capitalization that fulfil
the following market criteria:
1.

Listed on a “Recognized and regulated Stock Exchange”

2.

Market Capitalization of at least USD 750.000.000

3.

Average Daily Value Traded of at least USD 1.000.000 over the past three months up to and including the
Selection Day

4.

No trading restrictions for international investors.

If there are less than 15 companies eligible for inclusion into the Index, the Index will consist of less than 15
companies. Extraordinary adjustments are possible.

62.2 Ordinary adjustment
The composition of the Index is adjusted semi-annually. The new Index members are determined on the Selection
Day and equally weighted on the Adjustment Day. In absence of any Extraordinary Adjustments, new Index weights
will only be implemented on the semi-annual Adjustment Dates.
The first adjustment is made in May 2016.
Solactive AG shall publish any changes made to the Index composition on the Selection Day and consequently with
sufficient notice before the Adjustment Day on the web page www.solactive.com.
The Index is rebalanced semi-annually over a five-day period. The weights of the constituents of the index on the nth
day are set as follows:

where:

t0=

First rebalancing day

Weighti (t)=Weight of company i at time t

Weighti *=Target weight of company i after the rebalancen=n-th day of the rebalancing periodD=

Total number of days in the rebalancing period (5)2.3 Extraordinary adjustment
An extraordinary adjustment, if applicable, is triggered and applied in compliance with the rules set forth in the
Solactive Guideline for Extraordinary Corporate Actions.

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3 Calculation of the Index
3.1 Index formula
The Index is an index whose value on a Business Day is equivalent to the sum over all Index Components of the
products of (a) the Number of Shares of the Index Component and (b) the price of the Index Component at therespective Exchange.
As a formula:𝑛𝐼𝑛𝑑𝑒𝑥𝑡 = ∑ 𝑥𝑖,𝑡 ∗ 𝑝𝑖,𝑡
𝑖=1

With:

𝑥𝑖,𝑡

= Number of Shares of the Index Component i on Trading Day t𝑝𝑖,𝑡= Price of Index Component i on Trading Day t in Index Currency

In absence of any ordinary or extraordinary adjustments, dividends or other adjustments as outlined in 3.3 of thisdocument, the number of shares of any Index Component 𝑥𝑖,𝑡 remains constant. The Index is calculated as a Net
Total Return Index. Dividends and other distributions are reinvested into the Index on the ex-date, resulting in achange of 𝑥𝑖,𝑡 .

3.2 Accuracy
The value of the Index will be rounded to two decimal places.
The Number of Shares of the Index Components will be rounded to six decimal places.
Trading Prices will be rounded to four decimal places.

3.3 Adjustments
Indices need to be adjusted for systematic changes in prices once these become effective. The Index is adjusted by
the decision of Index Committee for distributions, capital increases, rights issues, splits, par value conversions andcapital reductions.
This procedure ensures that the first ex quote can be properly reflected in the calculation of the Index. This ex-anteprocedure assumes the general acceptance of the Index calculation formula as well as open access to the parametervalues used. The calculation parameters are provided by Solactive AG.
Any delay in calculating the new Number of Shares of an Index Component would create problems. Therefore, theprocedure described above is the most appropriate.

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3.4 Dividends and other distributions
Dividend payments and other distributions cause an adjustment of the Number of Shares of the corresponding Index
Component. The new Number of Shares is calculated as follows:

𝑥𝑖,𝑡 = 𝑥𝑖,𝑡−1 ∗𝑝𝑖,𝑡−1𝑝𝑖,𝑡−1 − 𝐷𝑖,𝑡

With:

𝑥𝑖,𝑡

= Number of Shares of the Index Component i on Trading Day t

pi,t -1= Trading Price of Index Component I on Trading Day t-1

𝐷𝑖,𝑡= Payment on Trading Day t multiplied by the Dividend Correction Factor of the respective
country

3.5 Corporate actions
3.5.1 Principles
Following the announcement by a company included in the Index of the terms and conditions of a corporate action
the Index Calculator determines whether such corporate action has a dilution, concentration or other effect on theprice of the Index Component.
If this should be the case the Index Calculator shall make the necessary adjustments to the affected Index Component
and/or the formula for calculating the Index and/or to other terms and conditions of this document that he deems
appropriate in order to take into account the dilution, concentration or other effect and shall determine the date on
which this adjustment shall come into effect.
Amongst other things the Index Calculator can take into account the adjustment made by an Affiliated Exchange as aresult of the corporate action with regard to option and futures contracts on the respective share traded on thisAffiliated Exchange.

3.5.2 Capital increases
In the case of capital increases (from the company’s own resources or through cash contributions) the new Numbersof Shares are calculated as follows:

𝑥𝑖,𝑡 = 𝑥𝑖,𝑡−1 ∗𝑝𝑖,𝑡−1𝑝𝑖,𝑡−1 − 𝑟𝐵𝑖,𝑡−1

with:

𝑟𝐵𝑖,𝑡−1 =𝑝𝑖,𝑡−1 − 𝐵 − 𝑁
𝐵𝑉 + 1

With:

𝑥𝑖,𝑡

= Number of Shares of Index Component i on the day of the distribution𝑥𝑖,𝑡−1= Number of Shares of Index Component i on the day prior to the distribution𝑝𝑖,𝑡−1= Closing price on the day prior to ex date𝑟𝐵𝑖,𝑡−1= Calculated value of rights issue

𝐵= Price of rights issue9

𝑁= Dividend disadvantage

𝐵𝑉= Subscription ratio

𝐵 = 0 if capital is increased from the company’s own resources.
The last dividend paid or the announced dividend proposal is applied as the dividend disadvantage.

3.5.3 Capital reductions
In the case of capital reductions the new Number of Shares is determined as follows:

𝑥𝑖,𝑡 = 𝑥𝑖,𝑡−1 ∗

1
𝐻𝑖,𝑡

With:

𝐻𝑖,𝑡

= Reduction ratio of the company on day t𝑥𝑖,𝑡= Number of Shares of the affected Index Component on the day of the distribution𝑥𝑖,𝑡−1= Number of Shares of the affected Index Component on the day prior to the distribution

3.5.4 Share splits and par value conversions
In the case of share splits and par value conversions it is assumed that the prices change in ratio to the number ofshares or to the par values. The new Number of Shares is calculated as follows:

𝑥𝑖,𝑡 = 𝑥𝑖,𝑡−1 ∗𝑁𝑖,𝑡−1𝑁𝑖,𝑡With:

𝑁𝑖,𝑡−1= Former par value of security class i (or new number of shares)

𝑁𝑖,𝑡= New par value of security class i (or former number of shares)𝑥𝑖,𝑡= Number of Shares of the affected Index Component on the day of the distribution𝑥𝑖,𝑡−1= Number of Shares of the affected Index Component on the day prior to the distribution

3.6 Miscellaneous
3.6.1 Recalculation

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Solactive AG makes the greatest possible efforts to accurately calculate and maintain its indices. However, theoccurrence of errors in the index determination process cannot be ruled out. In such cases Solactive AG adheres to
its publicly available Correction Policy.
3.6.2 Market Disruption
In periods of market stress Solactive AG calculates its indices following predefined and exhaustive arrangements set
out in its publicly available Disruption Policy.

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4. Definitions
4.1 Index-specific definitions“Index Universe” in respect of a Selection Day are all listed companies that fulfill the following criteria:
1.

Listed on a “Recognized and regulated Stock Exchange” in any of the following countries: Australia, Austria,
Belgium, Denmark, Finland, France, Germany, Hong Kong, Ireland, Italy, Japan, South Korea, Netherlands,
Norway, New Zealand, Portugal, Singapore, Spain, Sweden, Switzerland, United Kingdom, United States ofAmerica.

The initial composition of the Index on November 13, 2015 is as follows:
Name

TickerPalo Alto Networks Inc

PANW US Equity

Fireeye Inc

FEYE US Equity

Cyberark Software LTD/Israel

CYBR US Equity

Check Point Software Tech

CHKP US Equity

Symantec Corp

SYMC US Equity

Fortinet Inc

FTNT US Equity

Proofpoint Inc

PFPT US Equity

Imperva Inc

IMPV US Equity

Qualys Inc

QLYS US Equity

Infoblox Inc

BLOX US Equity

GemaltoGTO NA Equity

Trend Micro Inc

4704 JT Equity

4.2 Other definitions“Index Advisor” is
I&S Internet & Security Consulting GmbHThomas Rappold
Hauffweg 5D-72189 Voehringenwww.silicon-valley.de“Index Component” is each share currently included in the Index.
“Number of Shares” is in respect of an Index Component and any given Business Day the number or fraction ofshares included in the Index. It is calculated for any Index Component as the ratio of (A) the Percentage Weight of an
Index Component multiplied by the Index value and (B) its Trading Price.
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“Average Daily Traded Value” means, in respect of a Share, the sum of Daily Traded Value over a specified period
divided by the number of Exchange Trading Days that fall in the specified period.
“Daily Traded Value” means, in respect of a Share and of an Exchange Trading Day, the product of (i) the Closing
Exchange Price of such Share and (ii) the volume traded (measured as a number of Shares) of such Share on the
Exchange during such Exchange Trading Day. For Canadian stocks the Daily Traded Value shall be calculated on acomposite basis (i,e, aggregated over all regulated Canadian stock exchanges).
“Percentage Weight” of an Index Component is the ratio of its Trading Price multiplied by its Number of Shares
divided by the Index value.
“Dividend Correction Factor” is calculated as 1 minus the applicable withholding tax rate and/or other applicabletax rate currently prevalent in the respective country.
In particular an “Extraordinary Event” is-a Mergera Takeover bid
a delisting
the Nationalisation of a company
Insolvency.

The Trading Price for this Index Component on the day the event came into effect is the last available market pricefor this Index Component quoted on the Exchange on the day the event came into effect (or, if a market price is notavailable for the day the event came into effect, the last available market price quoted on the Exchange on a day
specified as appropriate by the Index Calculator), as determined by the Index Calculator, and this price is used as theTrading Price of the particular Index Component until the end of the day on which the composition of the Index isnext set.
In the event of the Insolvency of an issuer of an Index Component the Index Component shall remain in the Index
until the next Adjustment Day. As long as a market price for the affected Index Component is available on a Business
Day, this shall be applied as the Trading Price for this Index Component on the relevant Business Day, as determinedin each case by the Index Calculator. If a market price is not available on a Business Day the Trading Price for thisIndex Component is set to zero. The Committee may also decide to eliminate the respective Index Component at an
earlier point in time prior to the next Adjustment Day. The procedure in this case is identical to an elimination due toand Extraordinary Event.
An Index Component is “delisted” if the Exchange announces pursuant to the Exchange regulations that the listingof, the trading in or the issuing of public quotes on the Index Component at the Exchange has ceased immediately or
will cease at a later date, for whatever reason (provided delisting is not because of a Merger or a Takeover bid), andthe Index Component is not immediately listed, traded or quoted again on an exchange, trading or listing system,
acceptable to the Index Calculator,“Insolvency” occurs with regard to an Index Component if (A) all shares of the respective issuer must be transferred
to a trustee, liquidator, insolvency administrator or a similar public officer as result of a voluntary or compulsory
liquidation, insolvency or winding-up proceedings or comparable proceedings affecting the issuer of the Index
Components or (B) the holders of the shares of this issuer are legally enjoined from transferring the shares.
A “Takeover bid” is a bid to acquire, an exchange offer or any other offer or act of a legal person that results in therelated legal person acquiring as part of an exchange or otherwise more than 10% and less than 100% of the voting
shares in circulation from the issuer of the Index Component or the right to acquire these shares, as determined by
the Index Calculator based on notices submitted to public or self-regulatory authorities or other informationconsidered by the Index Calculator to be relevant.
With regard to an Index Component a “Merger” is
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(i)
(ii)

(iii)

(iv)

a change in the security class or a conversion of this share class that results in a transfer or an ultimate
definite obligation to transfer all the shares in circulation to another legal person,a merger (either by acquisition or through forming a new structure) or a binding obligation on the partof the issuer to exchange shares with another legal person (except in a merger or share exchange underwhich the issuer of this Index Component is the acquiring or remaining company and which does not
involve a change in security class or a conversion of all the shares in circulation),a takeover offer, exchange offer, other offer or another act of a legal person for the purposes of acquiring
or otherwise obtaining from the issuer 100% of the shares issued that entails a transfer or theirrevocable obligation to transfer all shares (with the exception of shares which are held and controlled
by the legal person), ora merger (either by acquisition or through forming a new structure) or a binding obligation on the partof the issuer of the share or its subsidiaries to exchange shares with another legal person, whereby theissuer of the share is the acquiring or remaining company and it does not involve a change in the classor a conversion of the all shares issued, but the shares in circulation directly prior to such an event(except for shares held and controlled by the legal person) represent in total less than 50% of the sharesin circulation directly subsequent to such an event.

The “Merger Date” is the date on which a Merger is concluded or the date specified by the Index Calculator if such adate cannot be determined under the law applicable to the Merger.
“Nationalisation” is a process whereby all shares or the majority of the assets of the issuer of the shares arenationalised or are expropriated or otherwise must be transferred to public bodies, authorities or institutions.
“Exchange” is, in respect of Index and every Index Component, the respective primary exchange where the Index
Component has its primary listing. The Committee may decide to declare a different stock exchange the “Exchange”
for trading reasons, even if the company is only listed there via a Stock Substitute.
“Stock Substitute” includes in particular American Depository Receipts (ADR) and Global Depository Receipts(GDR).
With regard to an Index component (subject to the provisions given above under “Extraordinary Events”) the“Trading Price” in respect of a Trading Day is the closing price on this Trading Day determined in accordance with
the Exchange regulations. If the Exchange has no closing price for an Index Component, the Index Calculator shalldetermine the Trading Price and the time of the quote for the share in question in a manner that appears reasonable
to him.
A “Trading Day” is in relation to the Index or an Index Component a Trading Day on the Exchange (or a day thatwould have been such a day if a market disruption had not occurred), excluding days on which trading may beceased prior to the normal Exchange closing time. The Index Calculator is ultimately responsible as to whether acertain day is a Trading Day with regard to the Index or an Index Component or in any other connection relating tothis document.
A “Business Day” is every day from Monday to Friday.
The “Index Calculator” is Solactive AG or any other appropriately appointed successor in this function.
The “Index Currency” is USD.
“Market Capitalization” is with regard to each of the shares in the Index Universe on a Selection Day or Adjustment
Day the value published by Reuters (or a successor) as the Market Capitalization for this day.
As at the date of this document Market Capitalization is defined by Reuters as the value of a company calculated bymultiplying the number of shares outstanding of the company by its share price. “Free Float Market Capitalization” is14with regard to each of the shares in the Index Universe or in the Index on a Selection Day or Adjustment Day theMarket Capitalization for this day multiplied by the ratio of (A) the number of shares in circulation and (B) the
number of shares outstanding of the respective company. If Reuters (or a successor):(i) does not publish for a Selection Day a Market Capitalization for a share or(ii) adopts another method for calculating the Market Capitalization for all shares or only with regard to the share in question oruses different assumptions in calculating the Market Capitalization for all shares or only with regard to the share in question,and in the reasonable assessment of the Index Calculator involves material changes (the Index Calculator makes the decision as
to whether such changes are to be deemed “material” by applying factors that in his reasonable assessment appear appropriate
to him), the Index Calculator will determine the Market Capitalization in respect of the shares or of a share included in the Index
Universe and the respective Selection Day either from another publicly accessible source specified at his sole discretion or fromother sources that in his assessment are reasonable and appropriate in the event that no other publicly quoted suitable prices
are available.
“Adjustment Day” is the second Wednesday of May and November.
“Selection Day” is 10 Business Days prior to the Adjustment Day.
An “Affiliated Exchange” is with regard to an Index Component an exchange, a trading or quotation system on
which options and futures contracts on the Index Component in question are traded, as specified by the Index
Calculator.
A “Market Disruption Event” occurs if
1.

one of the following events occurs or exists on a Trading Day prior to the opening quotation time for an
Index Component:A) trading is suspended or restricted (due to price movements that exceed the limits allowed by the
Exchange or an Affiliated Exchange, or for other reasons):
1.1.

across the whole Exchange; or

1.2.

in options or futures contracts on or with regard to an Index Component or an Index Component
that is quoted on an Affiliated Exchange; or

1.3.

on an Exchange or in a trading or quotation system (as determined by the Index Calculator) in
which an Index Component is listed or quoted; orB) an event that (in the assessment of the Index Calculator) generally disrupts and affects the opportunities
of market participants to execute on the Exchange transactions in respect of a share included in the Index or
to determine market values for a share included in the Index or to execute on an Affiliated Exchangetransaction with regard to options and futures contracts on these shares or to determine market values forsuch options or futures contracts; or2.

trading on the Exchange or an Affiliated Exchange is ceased prior to the usual closing time (as defined
below), unless the early cessation of trading is announced by the Exchange or Affiliated Exchange on this
Trading Day at least one hour before(aa) the actual closing time for normal trading on the Exchange or Affiliated Exchange on the Trading Day inquestion or, if earlier.
(bb) the closing time (if given) of the Exchange or Affiliated Exchange for the execution of orders at the time
the quote is given.
“Normal exchange closing time” is the time at which the Exchange or an Affiliated Exchange is normallyclosed on working days without taking into account after-hours trading or other trading activities carriedout outside the normal trading hours; or3.

a general moratorium is imposed on banking transactions in the country in which the Exchange is resident if
the above-mentioned events are material in the assessment of the Index Calculator, whereby the Index
Calculator makes his decision based on those circumstances that he considers reasonable and appropriate.

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5 Appendix
5.1 Contact data
Information regarding the Index concept

Solactive AG
Guiollettstr. 54
60325 Frankfurt am Main
Deutschland
Tel.: +49 69 719 160 00
Fax: +49 69 719 160 25

equity.ops@solactive.com
5.2 Calculation of the Index – change in calculation method
The application by the Index Calculator of the method described in this document is final and binding. The Index
Calculator shall apply the method described above for the composition and calculation of the Index. However itcannot be excluded that the market environment, supervisory, legal, financial or tax reasons may require changes tobe made to this method. The Index Calculator may also make changes to the terms and conditions of the Index andthe method applied to calculate the Index, which he deems to be necessary and desirable in order to prevent obvious
or demonstrable error or to remedy, correct or supplement incorrect terms and conditions. The Index Calculator is
not obliged to provide information on any such modifications or changes. Despite the modifications and changes theIndex Calculator will take the appropriate steps to ensure a calculation method is applied that is consistent with themethod described above.

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