European Opportunities Note

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Preliminary Offering Memorandum
www.dib.ae
OFFERING TERMS SUMMARY
Certicate Form Islamic Note backed by Sharia-compliant transactions
Issuer of the Note
J.P. Morgan Structured Products B.V. (JPM) Guaranteed by J.P. Morgan Chase
Bank N.A (Senior Long Term Debt Rating: S&P: A+, Fitch: A+, Moodys: Aa3)
Sole Distributor Dubai Islamic Bank
Issue Price AED 10,000
Minimum Investment Amount AED 100,000
Note Underlying
An equity basket with the following Share constituents
Reference Assets Bloomberg Code
GLAXOSMITHKLINE PLC GSK LN Equity
INDITEX ITX SM Equity
PORSCHE AUTOMOBIL HLDG PAH3 GY Equity
ROYAL DUTCH SHELL PLC A RDSA NA Equity
SYNGENTA AG REG SYNN VX Equity
SANOFI SAN FP Equity
Term 3 Years
Distributions per Note
First Distribution:
3 Business Days from issuance of the Note. 90% of the initial investment amount
Prot Distributions:
At the end of each year, if all stocks in the basket are above the Barrier Level,
investors receive a coupon of 7%.
The Barrier has a step down future making it more likely to get coupons, i.e.
Annual Prot 1 = 7.00% if all stocks are above 100% of their initial level on the
annual observation date 1.
Annual Prot 2 = 7.00% if all stocks are above 95% of their initial level on the
annual observation on date 2.
Annual Prot 3= 7.00% if all stocks are above 90% of their initial level on the
annual observation on date 3.Early Redemption Fee
Early Redemption Twice Monthly
Cut-of dates to receive redemption applications are the 10th and 25th (of the
same month). If the cut-of date is not a Business Day, the immediately following
Business Day will apply.
The relevant respective redemption pricing dates (in the same month) if the cut-
of dates are met, will be the 15th and the last Business Day of the month. If such
day i) is not a Business Day; ii) is not a Trading Day or is a Disrupted Day for any
of the constituent Shares, or iii) is less than 2 Business Days after the cut-of date;
the following day which is both a Business Day and a Trading Day for all Share
constituents will apply.
Early Redemptions can take place according to Secondary Market conditions set
out below.
Early Redemption Fee 1% of the redemption amount
Business Day A regular day when Banks are open for business in Dubai, UAE and London, UK
Agency Fee 1.25% of the subscription amount
Secondary Market While J.P. Morgan Structured products B.V (Issuer) or J.P. Morgan Securities plc.
(Dealer) intends to repurchase Notes ofered to it and maintain an indicative bid
ofer spread of 1%, it is not required to do so and may cease making repurchases
at any time and for any reason. Any such repurchases will be on such terms as
the Issuer or the Dealer (as appropriate) deems reasonable, based on market
conditions at the time and on such other factors as the Issuer or the Dealer (as
appropriate) may determine in its sole discretion.
Sharia Advisor Dar Al Sharia
Sharia Board Fatwa and Sharia Supervisory Board of Dubai Islamic Bank Group
This note has been prepared by Sales & Marke ng team and is not a product of a JPMorgan Research Area
1 Asia Development Outlook 2013: Asias Energy Challenge, 9 April 2013, Asian Development Bank,
http://www.adb.org/news/media/infographic/asian development outlook 2013 asias energy challenge
2 World Energy Outlook 2012, Energy Access Projec ons to 2030, Interna onal Energy Agency,
http://www.worldenergyoutlook.org/resources/energydevelopment/energyaccessprojec onsto2030/
3 UPI.com, Asia needs $944 billion Investment for energy efciency
http://www.upi.com/Business_News/Energy Resources/2013/06/26/Asia needs 944 billion investment for energy efciency/UPI 81771372265781/
Overview
The note aims to provide an annual prot payment linked to the performance of 6 European equities. The note
provides capital protection by returning 90% of the initial invested amount 3 Business Days after issue date.
Underlying Basket
Reference Assets (i) Bloomberg Code
GLAXOSMITHKLINE PLC GSK LN Equity
INDITEX ITX SM Equity
PORSCHE AUTOMOBIL HLDG
PRF
PAH3 GY Equity
ROYAL DUTCH SHELL PLC A
SHS
RDSA NA Equity
SYNGENTA AG REG SYNN VX Equity
SANOFI SAN FP Equity
Mechanism
Prot Distributions:
At the end of each year, if all stocks in the basket are above the Barrier Level, investors receive a coupon of 7%.
The Barrier has a step down future making it more likely to get coupons , i.e. Annual Prot 1 = 7.00% if all stocks
are above 100% of their initial level on the annual observation date 1.
Annual Prot 2 = 7.00% if all stocks are above 95% of their initial level on the annual observa on date 2.
Annual Prot 3= 7.00% if all stocks are above 90% of their initial level on the annual observa on date 3.
Payments of Prot:
In respect of any Instruments which include Prot Payment Dates or Contingent Prot Payment Date on or before
each Prot Payment Date or Contingent Prot Payment Date (as the case may be), JPMSL will pursuant to the
Purchase Undertaking Deed purchase the relevant Sharia Assets held by the Custodian on behalf of the Issuer on
such date. The consideration provided by JPMSL in respect of the purchase of the Sharia Assets will consist of
either a payment of cash or a combination of cash (in an amount equal to the Prot Amount or the Contingent
Prot Amount (as the case may be) payable on the relevant Prot Payment Date or Contingent Prot Payment
Date (as the case may be)) and Sharia compliant assets. The Issuer will pay the Prot Amount or the Contingent
Prot Amount (as the case may be) due to Holders on the Prot Payment Date or Contingent Prot Payment
Date (as the case may be). To the extent that the consideration is a combination of cash and Sharia compliant
assets, the remaining consideration will be delivered to the Custodian and will be subject to the Trust Deed.
Payment of redemption Amount:
Description of Purchase Undertaking deed An undertaking in favour of the Issuer entered into by JPMSL by
virtue of a master purchase undertaking (the Master Purchase Undertaking) and the execution by JPMSL of an
issue deed relating to the relevant Instruments, pursuant to which JPMSL undertakes, in favour of the Issuer and
following receipt of a Purchase Acceptance from the Issuer, to purchase the Sharia Assets from the Issuer at a
price determined by reference to the redemption amount.

Background
European equities appear attractive from a medium term perspective. Europe has not unwound the sizable
underperformance it had against US since 2010.
A series of recent good gures in European economies: PMIs (Purchasing Managers Index) picking up in
Europe, current account imbalances have closed.
Quality of the underlying universe with 6 European blue chips companies (not restricted to Eurozone only)
Diversied in term of sectors and location.
Buy and hold recommenda ons from analysts above 75%.
Good economic gures
European PMI (Purchasing Manager Index) gures have been picking up. Europe is not lagging behind the world
anymore and the January 2014 gure is at 3 year high. Overall the Developed World has a positive economic
backdrop
Relative Value
Europe can be seen as a long term recovery story that ofers signicant value. Even excluding nancials Euope
P/Book is near record discount relative to US.
Eurozone composite PMI is at 3-year highs
MSCI Europe vs US P/B (ex Financials)
Example Hypothetical Scenarios*
We have presented below the outcome of the investment under some example hypothe cal scenarios
Scenario 1: represents the worst case scenario where the basket doesnt perform and investors receive only the rst
distribu on of 90% of Principal.
End of Year 1 End of Year 2 End of Year 3
Reference Assets
1st
Distribution
Share Level Share Level Share Level
Total
Distribution
Share 1 80% 75% 85%
Share 2 70% 75% 85%
Share 3 95% 80% 90%
Share 4 105% 85% 95%
Share 5 60% 70% 75%
Share 6 55% 60% 70%
Barrier 100% 95% 90%
All Above Barrier No No No
Distributions 90% 0% 0% 0% 90%
Scenario 2: represents an example where the prot distributions happen in only 1 of the years, and total distributions is
lower than Initial Investment
End of Year 1 End of Year 2 End of Year 3
Reference Assets
1st
Distribution
Share Level Share Level Share Level
Total
Distribution
Share 1 105% 110% 111%
Share 2 102% 96% 95%
Share 3 95% 92% 94%
Share 4 101% 98% 91%
Share 5 80% 88% 92%
Share 6 111% 116% 125%
Barrier 100% 95% <90%
All Above Barrier No No Yes
Distributions 90% 0% 0% 7% 97%
* This is not an exhaustive list of potential outcomes. These are only some examples of hypothetical scenarios and no
attempt has been made to forecast the performance of the investment product.
Scenario 3: represents an example where the prot distributions happen in 2 of the years
End of Year 1 End of Year 2 End of Year 3
Reference Assets
1st
Distribution
Share Level Share Level Share Level
Total
Distribution
Share 1 105% 110% 111%
Share 2 102% 96% 95%
Share 3 95% 105% 94%
Share 4 101% 98% 91%
Share 5 80% 96% 92%
Share 6 111% 116% 125%
Barrier 100% 95% <90%
All Above Barrier No Yes Yes
Distributions 90% 0% 7% 7% 104%
Scenario 2: represents an example where the prot distributions happen in only 1 of the years, and total distributions is
lower than Initial Investment
End of Year 1 End of Year 2 End of Year 3
Reference Assets
1st
Distribution
Share Level Share Level Share Level
Total
Distribution
Share 1 105% 110% 111%
Share 2 102% 96% 95%
Share 3 110% 105% 94%
Share 4 101% 98% 91%
Share 5 122% 96% 92%
Share 6 111% 116% 125%
Barrier 100% 95% <90%
All Above Barrier Yes Yes Yes
Distributions 90% 7% 7% 7% 111%
* This is not an exhaustive list of potential outcomes. These are only some examples of hypothetical scenarios and no
attempt has been made to forecast the performance of the investment product.
HISTORICAL SIMULATION
We simulated the launch of the op on from January 2003 to Oct 2010, which represents 2,852 itera ons. The maximum
payout was of 21.00%, and the minimum payout was of 0.00%. In more than 50% of the cases the pay out was 14.00%
or higher.
Data Source: Bloomberg
* Past performance is no indication of future results. Any back-testing is illustrative only and derived from certain JPMorgan models,
data, assumptions and estimates. It is possible to use diferent assumptions, and/or data to do the backtest simulation and the results
may be diferent from the results above. The JPMorgan results above may not take into account the exact terms of the nal product
and are not indicative of the actual results that may be obtained from an investment in this product. Investors should consider the nal
terms of the product. JPMorgan expressly disclaims any responsibility for (i) any errors or omissions in computing the back-testing,
and (ii) the use to which any recipient may put the back-testing.
1
/
1
/
0
3
25.00%
20.00%
15.00%
10.00%
5.00%
0.00%
4
/
1
/
0
3
7
/
1
/
0
3
1
0
/
1
/
0
3
1
/
1
/
0
4
4
/
1
/
0
4
7
/
1
/
0
4
1
0
/
1
/
0
4
1
/
1
/
0
5
4
/
1
/
0
5
7
/
1
/
0
5
1
0
/
1
/
0
5
1
/
1
/
0
6
4
/
1
/
0
6
7
/
1
/
0
6
1
0
/
1
/
0
6
1
/
1
/
0
7
4
/
1
/
0
7
4
/
1
/
0
8
4
/
1
/
0
9
4
/
1
/
1
0
7
/
1
/
0
7
7
/
1
/
0
8
7
/
1
/
0
9
7
/
1
/
1
0
1
0
/
1
/
0
7
1
0
/
1
/
0
8
1
0
/
1
/
0
9
1
0
/
1
/
1
0
1
/
1
/
0
8
1
/
1
/
0
9
1
/
1
/
1
0
45.00%
40.00%
35.00%
30.00%
25.00%
20.00%
15.00%
10.00%
5.00%
0.00%
0% 7% 14% 21%
18.44%
35.37%
6.77%
39.42%
Payout History - Luxury Basket
Frequency
DISCLAIMER
J.P. Morgan
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