Woche 37: Drones
Our structure enables you to participate in the supply chain in the area of unmanned aircraft
1Y BRC unmanned aircraft in CHF
Recently drones has been developed to an innovative vehicle for a variety of private and commercial functions:
- civil and military applications
- traffic development/analysis
- agricultural utilisation
- monitoring systems
- logistic processes
- defence systems
The application posibilities of autonomous aerial vehicles like drones are even greater and have the potential to revolutionizing entire business areas. Drones are able to to reach places which haven't been accessible in the past. These opportunities are for the military sector regarding monitoring and replenishment deliveries from highest interest. Also the heavy industries use drones for inspections and repairs. In the traffic control area the small flying objects enable recognizing and analyzing the traffic jam evolution. And these are only some of the numerous posible applications.
The Federal Aviation Administration (FAA) projects with a stable growth in the sector unmanned aircraft. Up to 2022 with average yearly growth rates of 25% (source: https://www.faa.gov/).
We developed an interesting basket of 3 companies to enable you to participate at the supply chain of the drones market:
- NVIDIA (NVDA): The creator of artificial intelligence is only known to the most as an graphic card producer. Platforms with artificial intelligence which are able to learn from unstructured datas are used to an increasing extent in the area inmanned aircrafts.
- Ambarella (AMBA) is specialized in high definition image-processings with low energy consumptions and provides video editing and therefore the necessary system functions on a single chip. Exactly these technics are required in the production of drones and also important for the police and security authorities.
- Northrop Grumman (NOC) is the leading supplier of the US Navy in the areas of autonomous systems e.g. drone X-47B. The company is the global technology leader in the fields of defenses and monitoring equipment.
To minimize the risk we involve these companies in the structure of an Barrier Reverse Convertibles with barriers 65% and 55% as well as the popoular One Star Feature.
One Star Feature
Also in case of a barrier event , if the best of (at least one of the underlyings) ≥ 100% at maturity, the investor receive 100%. The One Star provides a second chance even in the case of a barrier event.
12M BRC value chain drones in CHF
| Currency | CHF Quanto |
| Denomination | CHF 1'000.-- |
| Maturity | 12 months (early redemption possible) |
| Underlying (Worst-of) | Northrop Grumman (NOC US) Ambarella (AMBA US) NVIDIA (NVDA US) |
| Barrier Type | European |
| guaranteed coupon (Barrier 65%) |
16.00% p.a. |
| guaranteed coupon (Barrier 55%) |
11.60% p.a. |
| guaranteed coupon (Barrier 55%+One Star) |
6.0% p.a. |
| Autocall | 100% |
| Observation | after 6 months |
| Size | CHF 1'000.'000.-- |
| Issuer | Rating A minimum |
| Issue Price | 100% |
| Finders Fee | Up on request |
We are happy to customize the relevant components exactly to your personal preferences.
Text und analysis Florian Franz
Partner at Carat Solutions AG
Please find below the development of the 3 companies between the last 12 months:
