Universe of Index Components

Stocks of exchange listed companies with headquarters in Switzerland and admission to trading at a Swiss stock exchange.

Index Components and their selection

On 30 September (close-of-business) of each year (each a "Selection Day") the following determinations are made:

Stocks of companies that have their headquarters and their primary stock exchange listing in Switzerland, and whose average daily trading volume over 1 month, 3 months and 12 months was at least CHF 1.5 million are selected. Such stocks form the "Selection Pool".

Stocks out of the Selection Pool, that meet the conditions a) to d) below are selected. Such stocks form the "Filtered Selection Pool":

• Continuity: The dividend per share (adjusted for capital measures and any special distributions) has not decreased on a year-over-year basis for at least three (3) consecutive calendar years;
• Payout: The pay-out ratio smoothed over three years (accumulated dividends of the last three (3) calendar years1 divided by the accumulated net profits of the three (3) preceding calendar years) is between 25% and 75%;
• Yield: Both the average dividend yield of the last five (5) years calculated backwards from the relevant Selection Day (cumulative dividends divided by the daily arithmetic average value of the stock market prices) and the dividend yield as of the relevant Selection Day (current year’s distribution divided by the closing price as of the relevant Selection Day) amount to more than 1% per annum; and
• Growth: The compound annual growth rate (CAGR) over ten (10) years1 is positive with at least three (3) dividend increases on a year-over-year basis during this period.

A "DividendenAdel Score" is calculated in relation to all stocks included in the Filtered Selection Pool.

Stocks with a DividendenAdel Score greater than twenty-one (21) are considered "Primary DividendenAdel". This classification implies that, in addition to the conditions a) to d) in list item 2 above, the relevant stock must have had (i) no dividend reduction during the past ten (10) years and (ii) a dividend increase in the past year.

Stocks from the Filtered Selection Pool are selected for inclusion in the Index as follows:

• If there are ten (10) to twenty (20) Primary DividendenAdel, all Primary DividendenAdel are selected for inclusion in the Index.
• If there are less than ten (10) Primary DividendenAdel, the 10 stocks with the highest DividendenAdel Score are selected for inclusion in the Index.
• If there are more than twenty (20) Primary DividendenAdel, the twenty (20) Primary DividendenAdel with the highest DividendenAdel Score are selected for inclusion in the Index.