Announcement Methodology Change | Solactive Video Games & Esports v2 Index | Effective Date 12/01/2022

Today, on the 29/12/2021, Solactive announces the following changes to the methodology of the following Index (the ‘Affected Index’):

Rationale for Methodology Change

Solactive has determined that the current selection mechanism of the Affected Index may lead to an imbalanced representation of the increasing market the Affected Index is intended to reflect. Hence, the new methodology ensures that the most relevant companies in terms of 1) market capitalization and 2) thematic relevance are represented appropriately. Thus, Solactive has determined to increase the number of constituents from a maximum of 40 to a maximum of 50 companies. Moreover, an additional selection step that adds the ten eligible companies with the highest market capitalization out of the 100 highest ranking companies according to thematic relevance will be introduced. Lastly, the existing buffer rule is relaxed to accommodate the dynamics of these growing markets. The rule is modified so that companies are added to the index if they are among the top 20 companies according to thematic relevance.

Changes to the Index Guideline

The following Methodology changes will be implemented in the following points of the Index Guideline (ordered in accordance with the numbering of the affected sections):

1. Section 2.2. SELECTION OF THE INDEX COMPONENTS

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The index includes a maximum of 50 index components and a minimum of 40 index components.

The index components are selected in a two-step process. First, the 100 companies with the highest Index Score are sorted by their Total Market Capitalization in descending order. The 10 highest-ranking companies, according to their Total Market Capitalization, that generate at least 50% of their revenues from one of the categories (i) to (iv) are added as index components. As a second step, the remaining companies are sorted by their Index Score. The highest-ranking companies, according to their Index Score, that generate at least 50% of their revenues from one of the categories (i) to (iv) are added as index components until there are a maximum of 50 index components

If there are two or more companies that share a rank, then preference is given to the company with the highest average daily value Traded over the applicable TRADING MEASUREMENT PERIOD.

As of the Selection Day, the following buffer rules apply:

1. Companies in the Index Universe are sorted by their Index Score in descending order. Each company is assigned a rank based on the position in the sorted list, e.g., the security with the highest score is assigned rank 1.
2. The 100 highest-ranking companies are sorted by their Total Market Capitalization in descending order. The 10 highest-ranking companies, according to their Total Market Capitalization, that generate at least 50% of their revenues from one of the categories (i) to (iv) are added as index components.
3. The remaining companies are sorted by their Index Score in descending order. The 20 highest-ranking companies, according to their Index Score, that generate at least 50% of their revenues from one of the categories (i) to (iv) are added as index components.
4. Current index components that fulfill the following requirements are added as Index components by priority of index score until there are a maximum of 50 index components:
   1. The company has an Index Score
   2. The company generates more than 50% of its revenues from one of the categories (i) to (iv)
   3. The company satisfies the index universe requirements as described in section 2.1
5. If the total number of Index Components is still below 50 after the previous steps, companies that generate at least 50% of their revenues from one of the categories (i) to (iv) are sequentially added as index components according to the Index Score, until there are a maximum of 50 index components.

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2. Addition of the following definitions in Section 6. DEFINITIONS

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“INDEX SCORE” is the result of the algorithm ranking the companies according to their relevance to the selected theme specific keywords.

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The “TOTAL MARKET CAPITALIZATION” is with regard to each of the securities in the INDEX on a SELECTION DAY the sum of all SHARE CLASS MARKET CAPITALIZATIONs of a company.

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Defined terms used in this announcement, but not defined herein, have the meaning assigned to them in the respective index guideline of the Affected Index. The amended version of the index guideline will be available on the effective date.