Obligation Canadian Imperial Bank 0% ( US78013XTK45 ) en USD

Canadian Imperial Bank

100 % ⇌

Canada

US78013XTK45 ( en USD )

0%

30/06/2022 - Obligation échue

Prospectus brochure de l'obligation Royal Bank of Canada US78013XTK45 en USD 0%, échue

1 000 USD

7 225 000 USD

78013XTK4

N/A

N/A

La Banque Royale du Canada (RBC) est une institution financière multinationale canadienne offrant une large gamme de services financiers, incluant les services bancaires aux particuliers et aux entreprises, la gestion de patrimoine, les marchés des capitaux et l'assurance.

L'analyse du marché obligataire met en lumière la conclusion du cycle de vie d'une émission spécifique de la Royal Bank of Canada, institution financière majeure et d'envergure internationale dont le siège est au Canada, son pays d'émission. Cette obligation, identifiée par le code ISIN US78013XTK45 et le code CUSIP 78013XTK4, était libellée en dollars américains (USD) et représentait une taille totale d'émission de 7 225 000 USD, avec une taille minimale d'acquisition fixée à 1 000 USD pour les investisseurs. Sa particularité résidait dans son taux d'intérêt nominal de 0%, la classifiant comme une obligation zéro-coupon, ce qui impliquait que les détenteurs ne percevaient pas de coupons périodiques mais visaient un rendement par la différence entre le prix d'achat (généralement escompté) et le prix de remboursement à parité. Bien qu'une fréquence de paiement de 2 (semestrielle) puisse être spécifiée pour certaines obligations, elle n'était pas applicable aux paiements d'intérêts périodiques pour cette obligation spécifique étant donné sa nature zéro-coupon. Conformément à son calendrier, l'instrument est arrivé à maturité le 30 juin 2022 et a été intégralement remboursé à son prix nominal de 100% sur le marché, marquant la finalisation de son parcours pour les investisseurs et l'émetteur.

424B2 1 form424b2.htm PRINCIPAL PROTECTED NOTES (SX5E) 78013XTK4
RBC Ca pit a l M a rk e t s®
File d Pursua nt t o Rule 4 2 4 (b)(2 )
Re gist ra t ion St a t e m e nt N o. 3 3 3 -
2 2 7 0 0 1

Pricing Supplement
$7,225,000
Dated December 27, 2018
Notes Linked to the EURO STOXX
To the Product Prospectus Supplement ERN-EI-1, Prospectus
50® Index,
Supplement and Prospectus, Each Dated September 7, 2018
Due June 30, 2022
Royal Bank of Canada

Royal Bank of Canada is offering the notes (the "Notes") linked to the performance of the EURO STOXX 50® Index (the "Reference Asset").
The CUSIP number for the Notes is 78013XTK4. The Notes do not pay interest. If the level of the Reference Asset increases from the Initial
Level to the Final Level, the Notes provide a one-for-one return based on that increase. If the Final Level of the Reference Asset is equal to or
less than the Initial Level, the investor will receive the principal amount at maturity, and no additional payment. Any payments on the Notes are
subject to our credit risk.
Issue Date: December 31, 2018
Maturity Date: June 30, 2022
The Notes will not be listed on any securities exchange.
Investing in the Notes involves a number of risks. See "Risk Factors" beginning on page S-1 of the prospectus supplement dated September 7,
2018, "Additional Risk Factors Specific to the Notes" beginning on page PS-4 of the product prospectus supplement dated September 7, 2018,
and "Selected Risk Considerations" beginning on page P-6 of this pricing supplement.
The Notes will not constitute deposits insured by the Canada Deposit Insurance Corporation, the U.S. Federal Deposit Insurance Corporation or
any other Canadian or U.S. government agency or instrumentality. The Notes are not subject to conversion into our common shares under
subsection 39.2(2.3) of the Canada Deposit Insurance Corporation Act.
Neither the Securities and Exchange Commission nor any state securities commission has approved or disapproved of these securities or
determined that this pricing supplement is truthful or complete. Any representation to the contrary is a criminal offense.

Per Note

Total
Price to public(1)
100.00%

$7,225,000
Underwriting discounts and commissions(1)
3.25%

$234,812.50
Proceeds to Royal Bank of Canada
96.75%

$6,990,187.50
(1)Certain dealers who purchased the Notes for sale to certain fee-based advisory accounts may have foregone some or all of their underwriting discount or selling concessions. The
public offering price for investors purchasing the Notes in these accounts was between $967 .5 0 and $1,000 per $1,000 in principal amount.
The initial estimated value of the Notes as of the date of this pricing supplement is $948.49 per $1,000 in principal amount, which is less than the
price to public. The actual value of the Notes at any time will reflect many factors, cannot be predicted with accuracy, and may be less than this
amount. We describe our determination of the initial estimated value in more detail below.
RBC Capital Markets, LLC, which we refer to as RBCCM, acting as agent for Royal Bank of Canada, received a commission of $32.50 per
$1,000 in principal amount of the Notes and used a portion of that commission to allow selling concessions to other dealers of up to $32.50 per
$1,000 in principal amount of the Notes. The other dealers may forgo, in their sole discretion, some or all of their selling concessions. See
"Supplemental Plan of Distribution (Conflicts of Interest)" below.
RBC Capital Markets, LLC
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Notes Linked to the EURO STOXX 50® Index

SU M M ARY
The information in this "Summary" section is qualified by the more detailed information set forth in this pricing supplement, the
product prospectus supplement, the prospectus supplement, and the prospectus.
Issuer:
Royal Bank of Canada ("Royal Bank")
Issue:
Senior Global Medium-Term Notes, Series H
Underwriter:
RBC Capital Markets, LLC ("RBCCM")
Reference Asset:
EURO STOXX 50® Index
Bloomberg Ticker:
SX5E
Currency:
U.S. Dollars
Minimum Investment:
$1,000 and minimum denominations of $1,000 in excess thereof
Trade Date (Pricing Date):December 27, 2018
Issue Date:
December 31, 2018
CUSIP:
78013XTK4
Valuation Date:
June 27, 2022
Maturity Date:
June 30, 2022, subject to extension for market and other disruptions, as described in the product
prospectus supplement dated September 7, 2018.
Payment at Maturity (if
If, on the Valuation Date, the Percentage Change is posit ive , then the investor will receive an amount
held to maturity):
per $1,000 principal amount per Note equal to:

Principal Amount + (Principal Amount x Percentage Change)
If, on the Valuation Date, the Percentage Change is le ss t ha n or e qua l t o 0 % , then the investor will
receive the principal amount only.
Percentage Change:
The Percentage Change, expressed as a percentage, is calculated using the following formula:

Initial Level:
2,937.36, which was the closing level of the Reference Asset on the Trade Date.
Final Level:
The closing level of the Reference Asset on the Valuation Date.
Calculation Agent:
RBCCM
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Notes Linked to the EURO STOXX 50® Index

U.S. Tax Treatment:
We intend to take the position that the Notes will be treated as debt instruments subject to the special
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tax rules governing contingent payment debt instruments for U.S. federal income tax purposes. Please
see the section below, "Supplemental Discussion of U.S. Federal Income Tax Consequences" which
applies to the Notes.
Secondary Market:
RBCCM (or one of its affiliates), though not obligated to do so, may maintain a secondary market in the
Notes after the Issue Date. T he a m ount t ha t you m a y re c e ive upon sa le of your N ot e s prior
t o m a t urit y m a y be le ss t ha n t he princ ipa l a m ount of your N ot e s.
Listing:
The Notes will not be listed on any securities exchange.
Clearance and
DTC global (including through its indirect participants Euroclear and Clearstream, Luxembourg as
Settlement:
described under "Description of Debt Securities -- Ownership and Book-Entry Issuance" in the
prospectus dated September 7, 2018).
Terms Incorporated in the All of the terms appearing above the item captioned "Secondary Market" on pages P-2 and P-3 of this
Master Note:
pricing supplement and the terms appearing under the caption "General Terms of the Notes" in the
product prospectus supplement dated September 7, 2018, as modified by this pricing supplement.
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Notes Linked to the EURO STOXX 50® Index

ADDI T I ON AL T ERM S OF Y OU R N OT ES
You should read this pricing supplement together with the prospectus dated September 7, 2018, as supplemented by the
prospectus supplement dated September 7, 2018 and the product prospectus supplement dated September 7, 2018, relating to our
Senior Global Medium-Term Notes, Series H, of which these Notes are a part. Capitalized terms used but not defined in this
pricing supplement will have the meanings given to them in the product prospectus supplement. In the event of any conflict, this
pricing supplement will control. The Notes vary from the terms described in the product prospectus supplement in several
important ways. You should read this pricing supplement carefully.
This pricing supplement, together with the documents listed below, contains the terms of the Notes and supersedes all prior or
contemporaneous oral statements as well as any other written materials including preliminary or indicative pricing terms,
correspondence, trade ideas, structures for implementation, sample structures, brochures or other educational materials of ours.
You should carefully consider, among other things, the matters set forth in "Risk Factors" in the prospectus supplement dated
September 7, 2018 and "Additional Risk Factors Specific to the Notes" in the product prospectus supplement dated September 7,
2018, as the Notes involve risks not associated with conventional debt securities. We urge you to consult your investment, legal,
tax, accounting and other advisors before you invest in the Notes. You may access these documents on the Securities and
Exchange Commission (the "SEC") website at www.sec.gov as follows (or if that address has changed, by reviewing our filings for
the relevant date on the SEC website):
Prospectus dated September 7, 2018:
https://www.sec.gov/Archives/edgar/data/1000275/000121465918005973/l96181424b3.htm
Prospectus Supplement dated September 7, 2018:
https://www.sec.gov/Archives/edgar/data/1000275/000121465918005975/f97180424b3.htm
Product Prospectus Supplement ERN-EI-1 dated September 7, 2018:
https://www.sec.gov/Archives/edgar/data/1000275/000114036118038044/form424b5.htm
Our Central Index Key, or CIK, on the SEC website is 1000275. As used in this pricing supplement, "we," "us," or "our" refers to
Royal Bank of Canada.
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Notes Linked to the EURO STOXX 50® Index

H Y POT H ET I CAL RET U RN S
The examples set out below are included for illustration purposes only. The hypot he t ic a l Percentage Changes of the Reference
Asset used to illustrate the calculation of the Payment at Maturity (rounded to two decimal places) are not estimates or forecasts of
the Final Level or the level of the Reference Asset on any trading day prior to the Maturity Date. All examples assume that a
holder purchased Notes with an aggregate principal amount of $1,000 and that no market disruption event occurs on the Valuation
Date.
Example 1 --
Calculation of the Payment at Maturity where the Percentage Change is negative.

Percentage Change:
-10%

Payment at Maturity:
In this case, even though the Percentage Change is negative, you will receive
the principal amount of your Notes at maturity.

In this case, on a $1,000 investment, a -10% Percentage Change results in a Payment at Maturity of
$1,000.00, a 0.00% return on the Notes.
Example 2 --
Calculation of the Payment at Maturity where the Percentage Change is positive.

Percentage Change:
10%

Payment at Maturity:
$1,000 + ($1,000 x 10%) = $1,000 + $100.00 = $1,100.00

On a $1,000 investment, a 10% Percentage Change results in a Payment at Maturity of $1,100.00, a
10.00% return on the Notes.
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Notes Linked to the EURO STOXX 50® Index

SELECT ED RI SK CON SI DERAT I ON S
An investment in the Notes involves significant risks. Investing in the Notes is not equivalent to investing directly in the Reference
Asset. These risks are explained in more detail in the section "Additional Risk Factors Specific to the Notes," beginning on page
PS-4 of the product prospectus supplement. In addition to the risks described in the prospectus supplement and the product
prospectus supplement, you should consider the following:
·
Y ou M a y N ot Ea rn a Re t urn on Y our I nve st m e nt The payment you will receive at maturity will depend on
whether the level of the Reference Asset increases from the Initial Level to the Final Level. If the level of the Reference
Asset decreases from the Initial Level to the Final Level (or if the level of the Reference Asset is unchanged), you will not
receive any positive return on the Notes and you will only receive the principal amount.
·
T he N ot e s Do N ot Pa y I nt e re st a nd Y our Re t urn M a y Be Low e r t ha n t he Re t urn on a Conve nt iona l
De bt Se c urit y of Com pa ra ble M a t urit y There will be no periodic interest payments on the Notes as there would
be on a conventional fixed-rate or floating-rate debt security having the same maturity. The return that you will receive on
the Notes, which could be zero, may be less than the return you could earn on other investments. Even if your return is
positive, your return may be less than the return you would earn if you bought a conventional senior interest bearing debt
security of Royal Bank. As a result, your investment in the Notes may not reflect the full opportunity cost to you when you
consider factors, such as inflation, that affect the time value of money.
·
Pa ym e nt s on t he N ot e s Are Subje c t t o Our Cre dit Risk , a nd Cha nge s in Our Cre dit Ra t ings Are
Ex pe c t e d t o Affe c t t he M a rk e t V a lue of t he N ot e s The Notes are Royal Bank's senior unsecured debt
securities. As a result, your receipt of the amount due on the maturity date is dependent upon Royal Bank's ability to repay
its obligations at that time. This will be the case even if the level of the Reference Asset increases after the Trade Date.
No assurance can be given as to what our financial condition will be at the maturity of the Notes.
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·
T he re M a y N ot Be a n Ac t ive T ra ding M a rk e t for t he N ot e s--Sa le s in t he Se c onda ry M a rk e t M a y Re sult
in Signific a nt Losse s There may be little or no secondary market for the Notes. The Notes will not be listed on any
securities exchange. RBCCM and other affiliates of Royal Bank may make a market for the Notes; however, they are not
required to do so. RBCCM or any other affiliate of Royal Bank may stop any market-making activities at any time. Even if a
secondary market for the Notes develops, it may not provide significant liquidity or trade at prices advantageous to you. We
expect that transaction costs in any secondary market would be high. As a result, the difference between bid and asked
prices for your Notes in any secondary market could be substantial. The stated payment by Royal Bank, including the
potential repayment of principal, only applies if you hold the Notes to maturity. Sales prior to maturity could result in a loss
on your investment.
·
Y ou Will N ot H a ve Any Right s t o t he Se c urit ie s I nc lude d in t he Re fe re nc e Asse t As a holder of the
Notes, you will not have voting rights or rights to receive cash dividends or other distributions or other rights that holders of
securities included in the Reference Asset would have. The Final Level will not reflect any dividends paid on the securities
included in the Reference Asset, and accordingly, any positive return on the Notes may be less than the potential positive
return on those securities.
·
T he I nit ia l Est im a t e d V a lue of t he N ot e s I s Le ss t ha n t he Pric e t o t he Public The initial estimated value
set forth on the cover page of this pricing supplement does not represent a minimum price at which we, RBCCM or any of
our affiliates would be willing to purchase the Notes in any secondary market (if any exists) at any time. If you attempt to
sell the Notes prior to maturity, their market value may be lower than the price you paid for them and the initial estimated
value. This is due to, among other things, changes in the level of the Reference Asset, the borrowing rate we pay to issue
securities of this kind, and the inclusion in the price to the public of the underwriting discount and the estimated costs
relating to our hedging of the Notes. These factors, together with various credit, market and economic factors over the term
of the Notes, are expected to reduce the price at which you may be able to sell the Notes in any secondary market and will
affect the value of the Notes in complex and unpredictable ways. Assuming no change in market conditions or any other
relevant factors, the price, if any, at which you may be able to sell your Notes prior to maturity may be less than your
original purchase price, as any such sale price would not be expected to include the underwriting discount and the hedging
costs relating to the Notes. In addition to bid-ask spreads, the value of the Notes determined for any secondary market
price is
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Notes Linked to the EURO STOXX 50® Index

expected to be based on the secondary rate rather than the internal funding rate used to price the Notes and determine the
initial estimated value. As a result, the secondary price will be less than if the internal funding rate was used. The Notes
are not designed to be short-term trading instruments. Accordingly, you should be able and willing to hold your Notes to
maturity.
·
T he I nit ia l Est im a t e d V a lue of t he N ot e s on t he Cove r Pa ge of t his Pric ing Supple m e nt I s a n Est im a t e
Only, Ca lc ula t e d a s of t he T im e t he T e rm s of t he N ot e s We re Se t The initial estimated value of the Notes is
based on the value of our obligation to make the payments on the Notes, together with the mid-market value of the
derivative embedded in the terms of the Notes. See "Structuring the Notes" below. Our estimate is based on a variety of
assumptions, including our credit spreads, expectations as to dividends, interest rates and volatility, and the expected term
of the Notes. These assumptions are based on certain forecasts about future events, which may prove to be incorrect.
Other entities may value the Notes or similar securities at a price that is significantly different than we do.
The value of the Notes at any time after the Trade Date will vary based on many factors, including changes in market
conditions, and cannot be predicted with accuracy. As a result, the actual value you would receive if you sold the Notes in
any secondary market, if any, should be expected to differ materially from the initial estimated value of your Notes.
·
An I nve st m e nt in t he N ot e s I s Subje c t t o Risk s Re la t ing t o N on -U .S. Se c urit ie s M a rk e t s Because
foreign companies or foreign equity securities included in the Reference Asset are publicly traded in the applicable foreign
countries and are denominated in euros, an investment in the securities involves particular risks. For example, the non-
U.S. securities markets may be more volatile than the U.S. securities markets, and market developments may affect these
markets differently from the U.S. or other securities markets. Direct or indirect government intervention to stabilize the
securities markets outside the U.S., as well as cross-shareholdings in certain companies, may affect trading prices and
trading volumes in those markets. Also, the public availability of information concerning the foreign issuers may vary
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depending on their home jurisdiction and the reporting requirements imposed by their respective regulators. In addition, the
foreign issuers may be subject to accounting, auditing and financial reporting standards and requirements that differ from
those applicable to U.S. reporting companies.
The securities included in the Reference Asset are issued by companies located within the Eurozone, which is and has
been undergoing severe financial stress, and the political, legal and regulatory ramifications are impossible to predict.
Changes within the Eurozone could have a material adverse effect on the performance of the Reference Asset and,
consequently, on the value of the Notes.
·
I nc onsist e nt Re se a rc h Royal Bank or its affiliates may issue research reports on securities that are, or may become,
components of the Reference Asset. We may also publish research from time to time on financial markets and other
matters that may influence the levels of the Reference Asset or the value of the Notes, or express opinions or provide
recommendations that may be inconsistent with the purchasing or holding the Notes or with the investment view implicit in
the Notes or the Reference Asset. You should make your own independent investigation of the merits of investing in the
Notes and the Reference Asset.
·
M a rk e t Disrupt ion Eve nt s a nd Adjust m e nt s The payment at maturity and the Valuation Date are subject to
adjustment as described in the product prospectus supplement. For a description of what constitutes a market disruption
event as well as the consequences of that market disruption event, see "General Terms of the Notes--Market Disruption
Events" in the product prospectus supplement.
·
Y ou Will Be Re quire d t o I nc lude I nc om e on t he N ot e s Ove r T he ir T e rm Ba se d U pon a Com pa ra ble
Y ie ld, Eve n T hough Y ou Will N ot Re c e ive Any Pa ym e nt s U nt il M a t urit y The Notes are considered to be
issued with original issue discount. You will be required to include income on the Notes over their term based upon a
comparable yield, even though you will not receive any payments until maturity. You are urged to review the section
entitled "Supplemental Discussion of U.S. Federal Income Tax Consequences" and consult your own tax advisor.
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Notes Linked to the EURO STOXX 50® Index

I N FORM AT I ON REGARDI N G T H E REFEREN CE ASSET
All disclosures contained in this pricing supplement regarding the Reference Asset, including, without limitation, its make-up,
method of calculation, and changes in its components, have been derived from publicly available sources. The information reflects
the policies of, and is subject to change by, STOXX Limited, as the sponsor of the Reference Asset ("STOXX"). STOXX, which
owns the copyright and all other rights to the Reference Asset, has no obligation to continue to publish, and may discontinue
publication of, the Reference Asset. The consequences of STOXX discontinuing publication of the Reference Asset are discussed
in the section of the product prospectus supplement entitled "General Terms of the Notes--Unavailability of the Level of the
Reference Asset." Neither we nor RBCCM accepts any responsibility for the calculation, maintenance or publication of the
Reference Asset or any successor index.
The Reference Asset was created by STOXX Limited, a subsidiary of Deutsche Börse AG. Publication of the Reference Asset
began in February 1998, based on an initial index level of 1,000 at December 31, 1991.
Com posit ion a nd M a int e na nc e
The Reference Asset is composed of 50 component stocks of market sector leaders from within the 19 EURO STOXX®
Supersector indices, which represent the Eurozone portion of the STOXX Europe 600® Supersector indices.
The composition of the Reference Asset is reviewed annually, based on the closing stock data on the last trading day in August.
The component stocks are announced on the first trading day in September. Changes to the component stocks are implemented
on the third Friday in September and are effective the following trading day. Changes in the composition of the Reference Asset
are made to ensure that the Reference Asset includes the 50 market sector leaders from within the Reference Asset.
The free float factors for each component stock used to calculate the Reference Asset, as described below, are reviewed,
calculated, and implemented on a quarterly basis and are fixed until the next quarterly review.
The Reference Asset is also reviewed on an ongoing monthly basis. Corporate actions (including initial public offerings, mergers
and takeovers, spin-offs, delistings, and bankruptcy) that affect the Reference Asset composition are announced immediately,
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implemented two trading days later and become effective on the next trading day after implementation.
Ca lc ula t ion of t he Re fe re nc e Asse t
The Reference Asset is calculated with the "Laspeyres formula," which measures the aggregate price changes in the component
stocks against a fixed base quantity weight. The formula for calculating the Reference Asset value can be expressed as follows:
Free float market capitalization of the Reference Asset
Reference Asset =

Divisor
The "free float market capitalization of the Reference Asset" is equal to the sum of the products of the price, the number of shares,
the free float factor and the weighting cap factor for each component stock as of the time the Reference Asset is being calculated.
The Reference Asset is also subject to a divisor, which is adjusted to maintain the continuity of the Reference Asset values across
changes due to corporate actions, such as the deletion and addition of stocks, the substitution of stocks, stock dividends, and stock
splits.
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Notes Linked to the EURO STOXX 50® Index

Lic e nse Agre e m e nt
We have entered into a non-exclusive license agreement with STOXX providing for the license to us and certain of our affiliated or
subsidiary companies, in exchange for a fee, of the right to use indices owned and published by STOXX (including the Reference
Asset) in connection with certain securities, including the Notes offered hereby.
The license agreement between us and STOXX requires that the following language be stated in this document:
STOXX has no relationship to us, other than the licensing of the Reference Asset and the related trademarks for use in connection
with the Notes. STOXX does not:
·
sponsor, endorse, sell, or promote the Notes;
·
recommend that any person invest in the Notes offered hereby or any other securities;
·
have any responsibility or liability for or make any decisions about the timing, amount, or pricing of the Notes;
·
have any responsibility or liability for the administration, management, or marketing of the Notes; or
·
consider the needs of the Notes or the holders of the Notes in determining, composing, or calculating the Reference
Asset, or have any obligation to do so.
STOXX will not have any liability in connection with the Notes. Specifically:
·
STOXX does not make any warranty, express or implied, and disclaims any and all warranty concerning:
·
the results to be obtained by the Notes, the holders of the Notes or any other person in connection with the use of the
Reference Asset and the data included in the Reference Asset;
·
the accuracy or completeness of the Reference Asset and its data;
·
the merchantability and the fitness for a particular purpose or use of the Reference Asset and its data;
·
STOXX will have no liability for any errors, omissions, or interruptions in the Reference Asset or its data; and
·
Under no circumstances will STOXX be liable for any lost profits or indirect, punitive, special, or consequential damages
or losses, even if STOXX knows that they might occur.
The licensing agreement between us and STOXX is solely for their benefit and our benefit, and not for the benefit of the holders of
the Notes or any other third parties.
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Notes Linked to the EURO STOXX 50® Index

H ist oric a l I nform a t ion
The graph below sets forth the information relating to the historical performance of the Reference Asset. The information provided in this graph
is for the period from January 1, 2008 through December 27, 2018.
We obtained the information regarding the historical performance of the Reference Asset in the graph below from Bloomberg Financial Markets.
We have not independently verified the accuracy or completeness of the information obtained from Bloomberg Financial Markets. The historical
performance of the Reference Asset should not be taken as an indication of its future performance, and no assurance can be given as to the
Final Level of the Reference Asset. We cannot give you assurance that the performance of the Reference Asset will result in any positive return
on your initial investment.
EU RO ST OX X 5 0 ® I nde x ("SX 5 E")
PAST PERFORMANCE IS NOT INDICATIVE OF FUTURE RESULTS.
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Notes Linked to the EURO STOXX 50® Index

SU PPLEM EN T AL DI SCU SSI ON OF
U .S. FEDERAL I N COM E T AX CON SEQU EN CES
The following is a general description of the material U.S. tax considerations relating to the Notes. It does not purport to be a
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complete analysis of all tax considerations relating to the Notes. Prospective purchasers of the Notes should consult their tax
advisors as to the consequences under the tax laws of the country of which they are resident for tax purposes and the tax laws of
the U.S. of acquiring, holding and disposing of the Notes and receiving payments under the Notes. This summary is based upon
the law as in effect on the date of this document and is subject to any change in law that may take effect after such date.
The following section supplements the discussion of U.S. federal income taxation in the accompanying prospectus and prospectus
supplement and it supersedes the discussion of U.S. federal income taxation in the accompanying product prospectus supplement.
It applies only to those holders who are not excluded from the discussion of U.S. federal income taxation in the accompanying
prospectus. This discussion applies only to holders that will purchase the Notes upon original issuance and will hold the Notes as
capital assets for U.S. federal income tax purposes. Further, this discussion does not address the tax consequences applicable to
any holders under section 451(b) of the U.S. Internal Revenue Code of 1986, as amended (the "Code").
You should consult your tax advisor concerning the U.S. federal income tax and other tax consequences of your investment in the
Notes in your particular circumstances, including the application of state, local or other tax laws and the possible effects of changes
in federal or other tax laws.
NO STATUTORY, JUDICIAL OR ADMINISTRATIVE AUTHORITY DIRECTLY DISCUSSES HOW THE NOTES SHOULD BE
TREATED FOR U.S. FEDERAL INCOME TAX PURPOSES. AS A RESULT, THE U.S. FEDERAL INCOME TAX CONSEQUENCES
OF AN INVESTMENT IN THE NOTES ARE UNCERTAIN. BECAUSE OF THE UNCERTAINTY, YOU SHOULD CONSULT YOUR
TAX ADVISOR IN DETERMINING THE U.S. FEDERAL INCOME TAX AND OTHER TAX CONSEQUENCES OF YOUR
INVESTMENT IN THE NOTES, INCLUDING THE APPLICATION OF STATE, LOCAL OR OTHER TAX LAWS AND THE
POSSIBLE EFFECTS OF CHANGES IN FEDERAL OR OTHER TAX LAWS.
We will not attempt to ascertain whether any of the entities whose stock is included in the Reference Asset would be treated as a
"passive foreign investment company" within the meaning of Section 1297 of the Code, or a "U.S. real property holding corporation,"
within the meaning of Section 897 of the Code. If any of the entities whose stock is included in the Reference Asset were so
treated, certain adverse U.S. federal income tax consequences could possibly apply to a holder. You should refer to any available
information filed with the SEC and other authorities by the entities whose stock is included in the Reference Asset and consult your
tax advisor regarding the possible consequences to you in this regard, if any.
Royal Bank intends to treat any interest with respect to the Notes, as determined for U.S. federal income tax purposes, as from
sources within the U.S.
We intend to take the position that the Notes will be treated as debt instruments subject to the special tax rules governing
contingent payment debt instruments for U.S. federal income tax purposes. Under those rules, the amount of interest you are
required to take into account for each accrual period will be determined by constructing a projected payment schedule for the
Notes, and applying the rules similar to those for accruing original issue discount on a hypothetical noncontingent debt instrument
with that projected payment schedule. This method is applied by first determining the yield at which we would issue a noncontingent
fixed rate debt instrument with terms and conditions similar to the Notes (the "comparable yield") and then determining a payment
schedule as of the issue date that would produce the comparable yield. A projected payment schedule with respect to a note
generally is a series of projected payments, the amount and timing of which would produce a yield to maturity on that note equal to
the comparable yield. This projected payment schedule is solely for tax purposes and will consist of the Payment at Maturity.
These rules will generally have the effect of requiring you to include amounts as income in respect of the Notes prior to your
receipt of cash attributable to that income.
The amount of interest that you will be required to include in income during each accrual period for the Notes will equal the product
of the adjusted issue price for the Notes at the beginning of the accrual period and the comparable yield for
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Notes Linked to the EURO STOXX 50® Index

the Notes for such period. The adjusted issue price of the Notes will equal the Notes' original offering price plus any interest
deemed to be accrued on the Notes (under the rules governing contingent payment debt instruments).
To obtain the comparable yield and projected payment schedule for your Note, you should call RBC Capital Markets, LLC toll free
https://www.sec.gov/Archives/edgar/data/1000275/000114036118046110/form424b2.htm[12/31/2018 3:43:32 PM]

at 1-877-688-2301. You are required to use such comparable yield and projected payment schedule in determining your interest
accruals in respect of your Notes, unless you timely disclose and justify on your federal income tax return the use of a different
comparable yield and projected payment schedule.
The comparable yield and projected payment schedule are not provided to you for any purpose other than the determination of your
interest accruals in respect of the Notes, and we make no representations regarding the amount of contingent payments with
respect to the Notes.
If the contingent payment on the Notes becomes fixed on a day that is more than 6 months before the payment is due, applicable
Treasury regulations provide that you should make adjustments to the prior and future interest inclusions in respect of your Notes
over the remaining term for the Notes in a reasonable manner. You should consult your tax advisor as to what would be a
"reasonable manner" in your particular situation.
You will recognize gain or loss on the sale or maturity of the Notes in an amount equal to the difference, if any, between the
amount of cash you receive at such time and your adjusted basis in the Notes. In general, your adjusted basis in the Notes will
equal the amount you paid for the Notes, increased by the amount of interest you previously accrued with respect to the Notes (in
accordance with the comparable yield for the Notes).
Any gain you recognize on the sale or maturity of the Notes will be ordinary interest income. Any loss you recognize at such time
will be ordinary loss to the extent of interest you included as income in the current or previous taxable years in respect of the
Notes, and thereafter, capital loss. The deductibility of capital losses is limited.
Backup Withholding and Information Reporting. Payments made with respect to the Notes and proceeds from the sale of the Notes
may be subject to a backup withholding tax unless, in general, the holder complies with certain procedures or is an exempt
recipient. Any amounts so withheld generally will be refunded by the Internal Revenue Service ("IRS") or allowed as a credit against
the holder's U.S. federal income tax, provided the holder makes a timely filing of an appropriate tax return or refund claim.
Reports will be made to the IRS and to holders that are not exempted from the reporting requirements.
Non-U.S. Holders. The following discussion applies to non-U.S. holders of the Notes. You are a non-U.S. holder if you are a
beneficial owner of a Note and are for U.S. federal income tax purposes a non-resident alien individual, a foreign corporation, or a
foreign estate or trust.
Except as discussed below, payments made to a non-U.S. holder, and any gain realized on the sale or maturity of the Notes,
generally should be exempt from U.S. federal income and withholding tax, subject to generally applicable exceptions set forth in the
rules exempting "portfolio interest" from U.S. withholding tax, provided that (i) the holder complies with applicable certification
requirements, which certification may be made on Form W-8BEN or W-8BEN-E (or a substitute or successor form) on which the
holder certifies, under penalties of perjury, that the holder is not a U.S. person and provides its name and address, (ii) the payment
or gain is not effectively connected with the conduct by the holder of a U.S. trade or business, and (iii) if the holder is a non-
resident alien individual, the holder is not present in the U.S. for 183 days or more during the taxable year of the sale or maturity
of the Notes. In the case of (ii) above, the holder generally should be subject to U.S. federal income tax with respect to any income
or gain in the same manner as if the holder were a U.S. holder and, in the case of a holder that is a corporation, the holder may
also be subject to a branch profits tax equal to 30% (or such lower rate provided by an applicable U.S. income tax treaty) of a
portion of its earnings and profits for the taxable year that are effectively connected with its conduct of a trade or business in the
U.S., subject to certain adjustments. Payments made to a non-U.S. holder may be subject to information reporting and to backup
withholding unless the holder complies with applicable certification and identification requirements as to its foreign status.
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Notes Linked to the EURO STOXX 50® Index

Under Section 871(m) of the Code, a "dividend equivalent" payment is treated as a dividend from sources within the United States.
Such payments generally would be subject to a 30% U.S. withholding tax if paid to a non-U.S. holder. Under U.S. Treasury
Department regulations, payments (including deemed payments) with respect to equity-linked instruments ("ELIs") that are
"specified ELIs" may be treated as dividend equivalents if such specified ELIs reference an interest in an "underlying security,"
which is generally any interest in an entity taxable as a corporation for U.S. federal income tax purposes if a payment with respect
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