1. Contracts for Difference CFD PageThe Basics of CFD Trading

2. Important Notes .

These presentation slides are presented to you for information only and do not constitute and offer or solicitation to purchase or sell the product mentioned. It does not have any regard to your specific investment objectives, financial situation and any of your particular needs. Accordingly, no warranty whatsoever is given and no liability whatsoever is accepted for any loss arising whether directly or indirectly as a result of you acting based on this information.

Returns are not guaranteed. Hypothetical examples used in these presentation slides are for illustration purposes. Past performance of the specific examples used are not indicative of future performance.

Investments are subject to investment risks. The risk of loss in leveraged CFD trading can be substantial and you could lose in excess of your initial funds. Profits and losses can be magnified, and depending on the nature of your trade, your losses may be unlimited. You may be called upon at short notice to deposit additional margin funds. If required funds are not provided within the prescribed time, your positions may be liquidated. You may also want to consider the commission and finance cost in trading CFDs. The resulting deficits in your account are subject to penalty charges.

You are advised to read the terms & conditions of trading CFDs before trading in this product.The terms & conditions can be obtained from www.poems.com.sg or Phillip Securities Pte Ltd.

Page 3. Important Notes (Continued) .

You may wish to seek advice from a financial advisor before undertaking transactions in CFDs. In the event that you decide not to, you should consider whether trading in CFDs is suitable for you in light of your experience, objectives, financial resources and other relevant circumstances.

Any CFD offered is not approved or endorsed by the issuer or originator of the underlying security and that the issuer or originator is not privy to the CFD contract.

Phillip Securities Pte Ltd reserves the right to amend the information presented without prior notice.

The Straits Times Index CFD (the Securities) are not in any way sponsored, endorsed, sold, or promoted by FTSE International Limited, The London Stock Exchange Plc, The Financial Times Limited, SPH Data Services Pte Ltd, Singapore Press Holdings Ltd or Singapore Exchange Securities Trading Limited (collectively, the Index Sponsor), and the Index Sponsor bears no liability in connection with the administration, marketing or trading of the Securities. No warranty or representation or guarantee of any kind whatsoever relating to the Straits Times Index (the ST Index) or the Securities is given by the Index Sponsor. Singapore Press Holdings Ltd is entitled to all intellectual property rights in the ST Index.

PagePage 4. OTC / Exchange Traded Leveraged Instruments Risk Disclosure Statement . ( a ) LEVERAGED INSTRUMENTS TRADING (i)Effect of Leverage or Gearing Transactions in Leveraged Instruments carry a high degree of risk The amount of initial margin is small relative to the value of the futures contract or leveraged foreign exchange transaction so that the transaction is highly leveraged or geared. A relatively small market movement will have a proportionately larger impact on the funds you have deposited or will have to deposit; this may work against you as well as for you.You may sustain a total loss of the initial margin funds and any additional funds deposited with the firm to maintain your position . If the market moves against your position or margin levels are increased, you may be called upon to pay substantial additional funds on short notice in order to maintain your position. If you fail to comply with a request for additional funds within the specified time, your position may be liquidated at a loss and you will be liable for any resulting deficit in your account. Page 5. OTC / Exchange Traded Leveraged Instruments Risk Disclosure Statement . (ii)Risk-Reducing Orders or Strategies The placing of certain orders (e.g. stop-loss orders, where permitted under local law, or stop-limit orders) which are intended to limit losses to certain amounts may not be effective because market conditions may make it impossible to execute such orders. At times, it is also difficult or impossible to liquidate a position without incurring substantial losses. Strategies using combinations of positions, such as spread and straddle positions may be as risky as taking simple long or short positions. (b) LIQUIDITY OTC Leveraged Instruments may be very illiquid and may not have any secondary market, meaning that such instruments may be difficult to be sold within a reasonable time (if at all) or an a price which reflects its objectively perceived "fair" value. For some of such instruments it may even be difficult to get any reliable independent information about the value and risks associated with such instruments Page 6. OTC / Exchange Traded Leveraged Instruments Risk Disclosure Statement . ( c ) ADDITIONAL RISKS COMMON TO OTC LEVERAGED INSTRUMENTS TRADING Off-Exchange Transactions Without detracting from the generally of (i) above, you should particularly note that OTC Leveraged Instruments are traded on anoff-exchange basisand the firm with which you conduct your transactions (which may be ourselves or another firm if we act as your broker to effect a transaction with such firm) may be acting as your counterparty to the transaction. It may be difficult or impossible to liquidate an existing position, to assess the value, to determine a fair price or to assess the exposure to risk. For these reasons, these transactions may involve increased risks. Off-exchange transactions may be less regulated or subject to a separate regulatory regime.You should also note that wherewe act as your counterpartythat this prima facie means that your loss is our gain and as such we will not in such transactions be acting as your fiduciary but in our own interests.Page 7. Risks of CFD Trading. Leveraged instrument - Risk of loss can be substantial Profits and Losses magnified - Depending on nature of trade, losses may be unlimited Suitability - CFDmay not be suitablefor you if your:- a) Investment Objective is CAPITAL PRESERVATION and/or b) Risk Tolerance is LOW Execution of Orders When a client places a CFD order, pre-execution checks are performed on account status, fund sufficiency, credit limit, etc. In addition, CFD orders are subject to certain risk management checks, including the ability of PSPL to hedge its own exposure under CFD positions with clients. This means that a clients CFD order may not be filled immediately or it may not be filled at all.Page 8. Risks of CFD Trading. Force-closure of CFD Contracts PSPL may hedge its own exposure (Hedge Position) under a CFD position with the client. Where PSPLs counterparty in a hedge position unwinds or closes out the Hedge Position or for any other reason PSPL is no longer able to maintain the Hedge Position,PSPL may in its absolute discretion with or without notice to the client close any or all open positions, refuse any trades, cancel any ordersand fill any orders in each case at such level as PSPL may consider in good faith to be appropriate in all circumstances.Page 9. What are Contracts for Difference (CFDs) and why should you trade them? What are CFDs and why should you trade it? What is CFD (DMA)? Phillip CFD Trading Platforms & Range of Products Issues pertaining CFD & CFD (DMA) Page 10. What are Contracts for Difference (CFDs)?. A CFD is a product that allows you to participate in the price movement of an underlying share/ index, without the need for rights to ownership. Page 11. What are Contracts for Difference (CFDs)?. Client Brokerage House CFD trades Figure 1.1, CFD: an agreement between two parties PageContractual agreementbetween two parties to settle the differencebetween the closingand opening price at theclose of contract. Gross Profit or Loss = (|Closing Price Opening Price|) x Quantity 12. What are Contracts for Difference (CFDs)?. Exchange Exchange Exchange Exchange Stocks Physical Settlement CFDs No physical settlement. No share ownership. Figure 1.2, CFD: generic process chart Page 13. What are Contracts for Difference (CFDs)?. CFD is a derivative, an agreement betweentwo partiesAcme Stock Price Acme Stock CFD Price CFDs prices mirrors underlying product CFDs are derivatives, OTC & mirror/ track theirunderlying products CFDs prices mirror/ track the underlying product CFD is an agreement to settle price differences based on underlying product Figure 1.3, CFD: underlying prices (charts) Figure 1.4, CFD: underlying bid / ask prices (tables) PageDate Bid Ask 28-Nov-08 9.479.49 26-Nov-08 8.999.21 25-Nov-08 9.469.55 Date Bid Ask 28-Nov-08 9.479.49 26-Nov-08 8.999.21 25-Nov-08 9.469.55 14. What are Contracts for Difference (CFDs)?. Short Positions Buy Sell Buy Sell Buy Sell Buy Sell Long Positions -ve trade -ve trade +ve trade +ve trade Figure 1.5, CFD: gain & loss making matrix Gross Profit or Loss =(|Closing Price Opening Price|) x Quantity Gain & Loss making matrix Types of CFDs offered Stocks CFDs Index CFDs Page 15. Why should you trade CFDs?.

Flexibility to switch strategy as the market condition changes

Hedging

Pairs Trading

Opportunities to profit in either bull or bear markets Investors can hold long or short CFD positions. This presents investors opportunity to profit in either market condition.Figure 1.6, CFD: Chance to profit in any market conditions Page 16. Why should you trade CFDs? Short Sell easily with CFD Simplicity of ONE account for LONG & SHORT

• No need to maintain 2 separate accounts (SBL and margin)

• Overcome share delivery and settlement

• Short-sellusing a contract, without havingto borrow shares

• Flexibility to change strategies, centralized profits & losses

Figure 1.7, CFD: No need to maintain 2 accounts Page1 Figure 1.7, CFD: No need to maintain 2 accounts SBL Margin 17. Why should you trade CFDs? Figure 1.8, CFD: Diversification using leveraging Make use of leverage to diversify your portfolio Margin requirement as low as 15% forEquities CFDs (Straits Times Index Stocks) & as low as 5% for Index CFDs Page 18. Why should you trade CFDs? CFD -A diversification tool for you Stock Price 100% capital outlay required to trade normal stocks As low as 15% margin stock price (6.67x leverage) to trade a stock CFD vs Figure 1.10, CFD: capital outlay comparison 15% Stock CFD Price 100% Capital outlay comparison Figure 1.9, CFD: Trade across 4 markets PageCFDs can be short-sold Low Margin Requirements Quick settlement Trade across markets using 1 trading account Tool for diversificationLesser capital outlay 19. Why should you trade CFDs?.

Corporate Actions

Actions Phillip CFD cater for (by Ex-Date):

- Cash Adjustments for Dividends

• Short Positions: Client to pay GROSS dividends

• Long Positions: Client to receive NET dividends

- Quantity Adjustments for Bonus, Stock split*

- Scrip dividends (Long: Cash adjustments; Short: Liquidate by XD)

Actionsnot cateredfor:

- **Rights Issues, Shares Entitlements, Warrants Issues

* PSPL may liquidate all outstanding contracts before ex-date for those not mentioned.

** Short positions are subjected to force-closure if shares used for CFD hedge is being recalled by the lender.

CFD -A diversification tool for you Figure 1.9, CFD: Trade across 4 markets PageCFDs can be short-sold Low Margin Requirements Quick settlement Trade across markets using 1 trading account Tool for diversificationLesser capital outlay 20. How CFDs work? Buy (Long) order will be done when price indicated matches theAsk Price , after pre-execution checks are satisfied Sell (Short) order will be done when price indicated matches theBid Price , after pre-execution checks are satisfied Prices quoted on CFD are LIVE prices Buy Sell Queue Restrictions | Market orders are subject to fills based on prevailing market volume | Orders may be fully done, part done or rejected | First in First Out principle Figure 1.12, How CFD orders are filled based on Bid and Ask prices Page 21. Working Examples, Example 1: BUY (Long) XYZ CFD Figure 1.13, Long CFD working example Client has $34,500 and is bullish on XYZ Corp at $2.30. He can trade stocks or useCFDto buyXYZ CFD for 3calendar days. Assuming margin requirement for XYZ is 15% with leverage of 6.67 times. Page 22. Working Examples, Example 1: BUY (Long) XYZ CFD Working Examples LONGXYZ @$2.30 and sell @$2.50 =$0.20gain The listed example is for illustration purpose only. Past performance not indicative of future performance Day 1, XYZ closes @ $2.00 Day 2, XYZ closes @ $2.20 Day 3, XYZ closes @ $2.50 PageStocks CFD Initial Capital $34,500 $34,500 Quantity 15,000 shares 100,000 shares Opening @ $2.30: Contract Value $34,500 $230,000 Commission (w 7% GST) ($103.36) ($364.43) Clearing Fee (w 7% GST) ($14.77) N.A. SGX Access Fee (w 7% GST) ($2.77) N.A. Position closed on Day 2 Finance Charge N.A. ($57.54) Closing @ $2.50: Contract Value $37,500 $250,000 Commission (w 7% GST) ($112.35) ($395.90) Clearing Fee (w 7% GST) ($16.05) N.A. SGX Access Fee (w 7% GST) ($3.01) N.A. Net Profit / (Loss) $2,747.69 $19,182.13 Return on Equity (%) 7.96% 55.60% 23. Working Examples, Example 1: BUY (Long) XYZ CFD Working Examples LONGXYZ @$2.30 and sell @$2.10 =$0.20loss The listed example is for illustration purpose only. Past performance not indicative of future performance. Day 1, XYZ closes @ $2.00 Day 2, XYZ closes @ $2.20 Day 3, XYZ closes @ $2.50 PageStocks CFD Initial Capital $34,500 $34,500 Quantity 15,000 shares 100,000 shares Opening @ $2.30: Contract Value $34,500 $230,000 Commission (w 7% GST) ($103.36) ($364.43) Clearing Fee (w 7% GST) ($14.77) N.A. SGX Access Fee (w 7% GST) ($2.77) N.A. Position closed on Day 3 Finance Charge N.A. ($57.54) Closing @ $2.10: Contract Value $31,500 $210,000 Commission (w 7% GST) ($93.38) ($332.56) Clearing Fee (w 7% GST) ($13.48) N.A. SGX Access Fee (w 7% GST) ($2.53) N.A. Net Profit / (Loss) ($3,230.29) ($20,754.53) Return on Equity (%) (9.37%) (60.16%) 24. Working Examples, Example 2: SELL (Short) XYZ CFD Figure 1.14, Short CFD working example Client has $ 10,000 and is bearish on XYZat $1.000. He can trade stocks using SBL or useCFDto short-sellXYZ CFD for3calendar days. Assuming margin requirement for XYZ is 15% with 6.67 times leverage. Page 25. Working Examples, Example 2: SELL (Short) XYZ CFD Working Examples SHORTXYZ @$1.00 and buy @$0.90 =$0.10gain *Short-selling requiresshare borrowing (SBL),which also incurs arunning cost markedto market daily. The listed example is for illustration purpose only. Past performance not indicative of future performance Day 1, XYZ close @ $0.80 Day 2, XYZ close @ $1.10 Day 3, XYZ close @ $0.90PageSBL* CFD Initial Capital $10,000 $10,000 Quantity 30,000 shares 66,000 shares Opening @ $1.00: Contract Value $30,000 $66,000 Commission (w 7% GST) ($89.88) ($1 04.52 ) Clearing Fee (w 7% GST) ($12.84) N.A. SGX Access Fee (w 7% GST) ($2.41) N.A. Position closed on Day 3 Finance Charge ($24.66) ($13.75) Closing @ $0.90: Contract Value ($27,000) ($59,400) Commission (w 7% GST) ($80.89) ($ 94.07 ) Clearing Fee (w 7% GST) ($11.56) N.A. SGX Access Fee (w 7% GST) ($2.17) N.A. Net Profit / (Loss) $2,775.59 $6,387.66 Return on Equity (%) 27.75% 63.88% 26. Working Examples, Example 2: SELL (Short) XYZ CFD Working Examples SHORTXYZ @$1.00 and buy @$1.10 =$0.10loss *Short-selling requiresshare borrowing (SBL),which also incurs arunning cost markedto market daily. The listed example is for illustration purpose only. Past performance not indicative of future performance Day 1, XYZ close @ $0.80 Day 2, XYZ close @ $0.90 Day 3, XYZ close @ $1.10 PageSBL* CFD Initial Capital $10,000 $10,000 Quantitya 30,000 shares 66,000 shares Opening @ $1.00: Contract Value $30,000 $66,000 Commission (w 7% GST) ($89.88) ($104.52) Clearing Fee (w 7% GST) ($12.84) N.A. SGX Access Fee (w 7% GST) ($2.41) N.A. Position closed on Day 3 Finance Charge ($24.66) ($12.30) Closing @ $1.10: Contract Value ($33,000) ($72,600) Commission (w 7% GST) ($98.87) ($114.97) Clearing Fee (w 7% GST) ($12.84) N.A. SGX Access Fee (w 7% GST) ($2.65) N.A. Net Profit / (Loss) ($3,244.15) ($6,831.79) Return on Equity (%) (32.44%) (68.32%) 27. Phillip CFD Trading Platforms Online trading made easy with award winning POEMS Internet Trading Platformwww.poems.com.sg Figure 1.15, POEMS, Internet trading platform Page 28. Phillip CFD Trading Platforms KEY FEATURES: Advanced Order Types Multi Display Support Multiple Market tracking Enhanced Position keeping Figure 1.16, screenshot of CFD Trader Page 29. Thank You Page 30. Phillip CFD contact details Address 250 North Bridge Road #06-00 Raffles City Tower Singapore 179 101 Website http://www.phillipcfd.com Email [email_address] Account Enquiry (65) 6336 4564 Fax (65) 6334 2015 Page