Methodology Change | Solactive Global Uranium & Nuclear Components Total Return Index | Effective Date 13/01/2023

Today, on the 04/01/2023, Solactive announces the following changes to the methodology of the following indices (the ‘Affected Indices’):

Rationale for Methodology Change

The Affected Indices aim to represent companies that have or are expected to have business operations or exposure in the uranium industry. This particularly includes uranium mining, exploration, uranium investments and technologies related to the uranium industry. In order to ensure that these companies do not engage in any application of uranium for unintended or controversial purposes, Solactive decided to add a Controversial Weapons filter to Section 2.1 based on the Methodology of Minerva Analytics Ltd. (http://www.minerva.info/) to enhance the Index integrity.

Minerva Analytics Ltd. will serve as a Data Provider for the evaluation of companies within the Index Universe in terms of their exposure to Controversial Weapons.

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):

Section 2.1 Index Universe Requirements

From (old version):

The Index Universe is comprised of all financial instruments which fulfill the below requirements

 (the “Index Universe Requirements“):

• Listing on a regulated stock exchange in the form of shares tradable for foreign investors without restrictions.
• The Index Universe will be constructed and defined by Solactive and supported with the “Uranium Suppliers Annual” as provided on a yearly basis by the Ux Consulting Company (UxC). The report will also be considered to classify companies as Pure Play Companies or Non-Pure Play Companies. Pure Play Companies in the “Uranium Suppliers Annual” are generally those with significant business operations in the uranium industry (particularly in uranium mining and exploration for uranium) as reflected by publicly disclosed information. Non-Pure Play Companies are generally those that conduct business operations that are related to the uranium industry (in particular uranium mining, exploration for uranium, physical uranium investments and technologies related to the uranium industry), and in which they generate large absolute revenues as reflected by publicly disclosed information. Additionally, a list of “Nuclear Component Producers” will be added to the Index Universe.
• Free Float Market Capitalization of at least USD 50 million for companies which are not Index Components on the respective Selection Day, at least USD 30 million for companies which are Index Components on the respective Selection Day.
• Average daily trading value over the applicable TRADING MEASUREMENT PERIOD of at least USD 100,000 for companies which are not Index Components on the respective Selection Day, at least USD 50,000 for companies which are Index Components on the respective Selection Day.
• To be considered for inclusion, initial public offerings (“IPOs”) with less than three calendar months of trading history as of the SELECTION DAY must have been listed at least 10 calendar days prior to the SELECTION DAY, if considered as Significant IPO, and three calendar months prior to the Selection Day, in the case of other IPOs.

The determination of the Index Universe is fully rule-based and the Index Administrator cannot make any discretionary decisions.

To (new version):

The Index Universe is comprised of all financial instruments which fulfill the below requirements

 (the “Index Universe Requirements“):

• Listing on a regulated stock exchange in the form of shares tradable for foreign investors without restrictions.
• The Index Universe will be constructed and defined by Solactive and supported with the “Uranium Suppliers Annual” as provided on a yearly basis by the Ux Consulting Company (UxC). The report will also be considered to classify companies as Pure Play Companies or Non-Pure Play Companies. Pure Play Companies in the “Uranium Suppliers Annual” are generally those with significant business operations in the uranium industry (particularly in uranium mining and exploration for uranium) as reflected by publicly disclosed information. Non-Pure Play Companies are generally those that conduct business operations that are related to the uranium industry (in particular uranium mining, exploration for uranium, physical uranium investments and technologies related to the uranium industry), and in which they generate large absolute revenues as reflected by publicly disclosed information. Additionally, a list of “Nuclear Component Producers” will be added to the Index Universe.
• Free Float Market Capitalization of at least USD 50 million for companies which are not Index Components on the respective Selection Day, at least USD 30 million for companies which are Index Components on the respective Selection Day.
• Average daily trading value over the applicable TRADING MEASUREMENT PERIOD of at least USD 100,000 for companies which are not Index Components on the respective Selection Day, at least USD 50,000 for companies which are Index Components on the respective Selection Day.
• To be considered for inclusion, initial public offerings (“IPOs”) with less than three calendar months of trading history as of the SELECTION DAY must have been listed at least 10 calendar days prior to the SELECTION DAY, if considered as Significant IPO, and three calendar months prior to the Selection Day, in the case of other IPOs.

The companies selected after completion of the above steps will be evaluated on the criteria outlined below. The evaluation is based on data provided by the Data Provider:

• Controversial Weapons:

• Companies involved in the production development or maintenance of Anti-personnel mines, Biological or Chemical weapons, Cluster munitions, Depleted uranium, Nuclear weapons, or any other weapon that violate humanitarian principles through normal use.
• Companies that produce or develop key and dedicated components for controversial weapons
• Companies that hold ≥20% stake in a company that is involved in controversial weapons.
• Companies currently ≥ 50% owned by a company that is involved in controversial weapons.

Companies violating the exclusion criteria above will be removed from the Index Universe.

The determination of the Index Universe is fully rule-based and the Index Administrator cannot make any discretionary decisions.

Section 6 Definitions

Adding the following Definition:

“Data Provider” is Minerva Analytics Ltd. For more information, please visit: http://www.minerva.info/

Defined terms used in this announcement, but not defined herein, have the meaning assigned to them in the respective index guideline of the Affected Indices.