Desktop
Transcription
Desktop
=63<4,?300;OL1V\YUHSVM[OL0U[LYUH[PVUHS(ZZVJPH[PVUVM4V]LYZ Taking a Look at LOGISTICS ^^^PHTV]LYZVYN 4(@1<5, TABLE OF CONTENTS ¶,?,*<;0=,*6440;;,, 79,:0+,5; ;LYY`9/LHK */(094(5 9HUKHSS.YVNLY 92.(ZZVJPH[LZ =0*,*/(094(5 1LMMYL`*VSLTHU *V]HU0U[LYUH[PVUHS0UJ .6=,9505.4,4),9:(;3(9., ;/,769;(34H`1\UL=VS\TL?300 /,(+305,:;LYY`9/LHK ;Y\JRZ4LUHUK>HYLOV\ZLZ -,(;<9,: 4 769;(3-6*<:!469,;/(5(46=,9 4PJOHLS9PJOHYKZVU :LUH[L-VY^HYKPUN0UJ .VYKVU2LLUL (IIH0U[LYUH[PVUHS0UJ 769;(3796-03,: /VYPaVU3PULZ0UJ!:LPaPUN4HYRL[6WWVY[\UP[`2LSS`+LUUPZVU ;OL7HZOH.YV\W!(3VNPZ[PJZ7V^LYOV\ZL2LP[O;V\UNL[ )PZOVW»Z4V]L!6YJOLZ[YH[PUNH-PULS`;\ULK9LSVJH[PVU <UP[LK9LSVJH[PVUZ:7[L3[K!(*VU]LUPLU[6UL:[VW9LZV\YJL 5VY[O:V\[O3VNPZ[PJZ0UJ:[L]L:[\[[Z +(:.SVIHS:LY]PJLZ!>L.L[0[:JV[[3H-VYNL 13 @V\UN7YVMLZZPVUHSZ@7 (7YVK\J[P]LHUK4LTVYHISL@V\UN4V]LYZ*VUMLYLUJL 18 *VYL4LTILYZ4HUHNLTLU[)VHYK6\[SVVR 7\NL[:V\UK0U[LYUH[PVUHS!;YHUZMVYTPUN;YHUZWVY[H[PVUHUK>HYLOV\ZL :VS\[PVUZ1HJRPL(NULY ;OL.VZZLSPU.YV\W!4V]PUNPUH5L^+PYLJ[PVU4HYJ:TL[ 22 0(4[O(UU\HS4LL[PUN 26 28 30 32 35 37 38 41 :LJ\YP[`HUK9PZR4HUHNLTLU[ 4PSP[HY`.V]LYUTLU[<WKH[L 4HYP[PTL6JLHU:OPWWPUN ,_LJ\[P]L:\P[L ;Y\JRPUNHUK0U[LYTVKHS:LY]PJLZ (PY*HYNV(PY;YH]LS :THSS)\ZPULZZHUK,JVUVTPJ5L^Z ;LJO5V[LZ 52 >HZOPUN[VU<WKH[L1PT>PZL7(*,337.V]LYUTLU[9LSH[PVUZ 1HU4VVYL )0530UJ 7LNN`>PSRLU :[L]LUZ-VY^HYKLYZ0UJ *69,4,4),9:9,79,:,5;(;0=, 1HJRPL(NULY 7\NL[:V\UK0U[LYUH[PVUHS0UJ *69,4,4),9:9,79,:,5;(;0=,(;3(9., +V\NSHZ-PURL :[LYSPUN0U[LYUH[PVUHS @79,79,:,5;(;0=, :[LWOHU.L\Y[Z1Y .V]SVN5= .,5,9(3*6<5:,3,4,90;<: (SHU->VOSZ[L[[LY .^`ULKK7LUUZ`S]HUPH *69,4,4),9:4(5(.,4,5;)6(9+ (-90*( 4H[OPL^+\UVK (.:-YHZLYZ ,YPJ)L\[OPU >VYSK^PKL4V]LYZ<NHUKH3[K *,5;9(3:6<;/(4,90*(*(90)),(5 *SPMM>PSSPHTZVU ;YHUZWHJR(YNLU[PUH:93 ;OVTHZ:JOTPK[ 4L_WHJR0U[LYUH[PVUHS9LTV]HSZ ,(:;,95:6<;/,(:;,95(:0( @VNLZO;OHRRLY Z[*LU[\Y`9LSVJH[PVUZ :[L]L3L^PZ <UP.YV\W>VYSK^PKL<;: ,<967, 4HYJ:TL[ .VZZLSPU>VYSK>PKL4V]PUN5= 9VIPU/VVK (YYV^WHR0U[LYUH[PVUHS 40++3,,(:;5,(9(:0( (QH`)OHSSH 3LHKLY-YLPNO[-VY^HKLYZ ,YHU+YLUNLY 6JLHU*VTWHU`3PTP[LK 569;/(4,90*( 2HYLU*VUV]LY :V\YKV\NO,_WYLZZ0UJ ,K^HYK;>PJRTHU >PJRTHU>VYSK^PKL:LY]PJLZ0UJ 6*,(50( 4HYPS`U:HYNLU[ (SVOH0U[LYUH[PVUHS4V]PUN:LY]PJLZ0UJ .LVYNL*VVWLY (\Z[YHSPHU=HUSPULZ 0(4»Z3LHKLYZPU3VNPZ[PJZ1HUL[:LLS` +,7(9;4,5;: 43 50 55 0UK\Z[Y`5L^Z >LSJVTL5L^4LTILYZ 7VY[HS(K]LY[PZPUN 56 56 (K]LY[PZLYZ0UKL_ 0UK\Z[Y`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¯ 3 ;,99@9/,(+ 0(47YLZPKLU[ HRSOHRIWHQDVNPH³:KDWH[DFWO\LVORJLVWLFV"´ )RUDQDQVZHUWRWKDWTXHVWLRQ\RXPD\ZDQWWRWXUQWRWKH)RFXVVHFWLRQLQWURGXFWLRQRQ SDJHZULWWHQE\-DQHW6HHO\,$0¶VGLUHFWRURIFRPPXQLFDWLRQVDQGPHPEHUHQJDJHPHQW-DQHW SURYLGHVDQRYHUYLHZRIWKHDUWLFOHVDQGSURILOHVRIVHYHUDO,$0PHPEHUFRPSDQLHVGHVFULELQJ KRZWKH\DVPRUHWKDQMXVWPRYHUVKDYHGLYHUVLILHGWRRIIHUDYDULHW\RIORJLVWLFDOVHUYLFHVDQG UHYHQXHVWUHDPV *RRJOHWKHWHUP³ORJLVWLFV´DQG\RXZLOOILQGDQXPEHURIGHILQLWLRQV)RUPHSHUVRQDOO\ SDUWLFXODUO\GXULQJP\FDUHHUDVDVDOHVSHUVRQVDOHVPDQDJHUDQGFRPSDQ\SULQFLSDOWKHDQVZHU WRWKHTXHVWLRQ³:KDWFRQVWLWXWHVORJLVWLFV"´HQFRPSDVVHVDQ\RIWKHZD\V\RXFDQPDNHPRQH\ ZLWKWUXFNVPHQDQGZRPHQDQGZDUHKRXVHV 7KRVHWKUHHHOHPHQWVWUDGLWLRQDOO\KDYHEHHQWKHSULPDU\SK\VLFDODVVHWVDYDLODEOHWRPDUNHW DQGVHOODVDPRYLQJEDVHGHQWLW\%XWEHLQJ³MXVWDPRYHU´QHYHUOLPLWHGP\FRPSDQ\¶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²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³:KDWRWKHUVHU YLFHVGR\RXQHHG"´WKH\ZHUHDSWWRUHVSRQGZLWKDZKROHOLVWRISRVVLELOLWLHVMREVWKDWUHTXLUHG WUXFNVPHQDQGZDUHKRXVHV,URQLFDOO\WKH\ZRXOGQ¶WQHFHVVDULO\KDYHWKRXJKWRIFRQWDFWLQJ P\FRPSDQ\EHFDXVHWKH\WKRXJKWZHZHUH²\RXJXHVVHGLW²³MXVWDPRYHU´0RUHRIWHQWKDQ QRWRXUFOLHQWVZHUHSOHDVHGWROHDUQWKDWZHFRXOGKHOSWKHPZLWKWKHLUORJLVWLFDOQHHGVEHFDXVH LWPHDQWWKH\ZRXOGQ¶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¶UHPDUNHWLQJ2QFH \RX¶YHHVWDEOLVKHG\RXUVHOIDVDYLDEOHSURYLGHU\RXFDQUDLVH\RXUSULFLQJWRPDUNHWOHYHO%XW LW¶VJRRGWRUHPHPEHUWKDW\RXPXVWILUVWSRVLWLRQWKHDUURZLQWKHERZEHIRUH\RXFDQHYHUH[SHFW WRKLWWKHWDUJHW ,I\RXUHDOO\ZDQWWRFRQVLGHUH[SDQGLQJ\RXUORJLVWLFDOFDSDELOLWLHVDJRRGILUVWVWHSLVWR NHHSUHDGLQJ<RXUIHOORZ,$0PHPEHUVZKRKDYHKDGVXFFHVVLQORJLVWLFVVKDUHWKHLUH[SHUL HQFHVLQWKLVLVVXH5HYLHZLQJWKHPPLJKWVWLPXODWH\RXUWKLQNLQJDERXWZKDWRWKHUWKLQJV\RXFDQ GR²EHVLGHV³MXVW´PRYLQJ²ZLWK\RXUWUXFNVPHQDQGZRPHQDQGZDUHKRXVHV PORTAL FOCUS: MORE THAN A MOVER 0(4»Z3LHKLYZPU3VNPZ[PJZ %\-DQHW&DYH6HHO\,$0'LUHFWRURI&RPPXQLFDWLRQVDQG0HPEHU(QJDJHPHQW $ VWKHVWDIIRI7KH3RUWDOZDVDVVHPEOLQJWKLVLVVXHZH EURDGFDVWWRPHPEHUVWKDWWKHIRFXVRIWKH0D\-XQHPDJD ]LQHZRXOGEHORJLVWLFV$OPRVWWRDSHUVRQWKRVHZKRUHVSRQGHG ZDQWHGWRNQRZHLWKHU³ZKDWH[DFWO\GR\RXPHDQE\WKDW"´RU ³ZKDWDUH\RXORRNLQJIRU"´$QGWKRVHZHUHYDOLGTXHVWLRQV /RJLVWLFVDVDEXVLQHVVLVZLGHRSHQVSHFLDOLVWVDERXQGLQ PLOLWDU\ORJLVWLFVLQWHJUDWHGWHFKQRORJ\ORJLVWLFVEXVLQHVVORJLV WLFVVXSSO\FKDLQDQGPRUH6LPSO\SXWKRZHYHUHYHU\WKLQJZH GRDVEXVLQHVVRZQHUVDQGHPSOR\HHV²DQGDVLQGLYLGXDOV²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³,W¶VQRWMXVWDERXWFRVWVDYLQJVIRURXUFXVWRP HUVLW¶VDERXWVROYLQJEXVLQHVVSUREOHPVIRUFRPSDQLHVZKR VLPSO\GRQ¶WKDYHWKHWLPHRUWKHUHVRXUFHVWRGHVLJQDQGPDQDJH WKHLURZQORJLVWLFVVROXWLRQV´VD\V-DFNLH$JQHUGLUHFWRUIRU KRXVHKROGJRRGVDW36,DQG&RUH0HPEHUV5HSUHVHQWDWLYHRQ ,$0¶V%RDUG 7KH3DVKD*URXSSDJHLVDQRWKHUH[DPSOHRIDVROX WLRQVEDVHGDQGEXVLQHVVVDYY\SOD\HULQWKHORJLVWLFVILHOG3DVKD FUHGLWVLGHQWLI\LQJEXVLQHVVWUHQGVDQGVWUDWHJLFSDUWQHUVKLS 7\NL[:V\UK0U[LYUH[PVUHSOHZ[OYLLMHJPSP[PLZPUJS\KPUN[OPZVULPU 5L^/HTWZOPYL DQGDFTXLVLWLRQIRUWKHLUVLJQLILFDQWJURZWKIURPDVPDOOSRUW RSHUDWLRQSUH::,,WRD³ORJLVWLFVSRZHUKRXVH´ZLWKILYHPDLQ RSHUDWLQJXQLWV3DVKD¶VLQWHUQDWLRQDOORJLVWLFVVHUYLFHVPRYHVXFK YDULHGJRRGVDVDXWRPRELOHVIRRGDQGKLJKWHFKHTXLSPHQW )RU+RUL]RQ/LQHVSDJH³WKHNH\VXFFHVVIDFWRULQDQ\ VXSSO\FKDLQLVDOZD\VWKHVDPHUHOLDELOLW\´+RUL]RQDFKLHYHV WKLVE\OHYHUDJLQJLWVGRPHVWLFLQODQGWUDQVSRUWDWLRQQHWZRUNLQ WKH86DQGLWVSDUWQHUQHWZRUNLQ$VLDWRRIIHUDRQHSURYLGHU RULJLQWRGHVWLQDWLRQH[SHULHQFHIRULWVFXVWRPHUV 0M`V\L]LYWSHUTHUHNLPTWSLTLU[ JVU[YVSTHPU[HPUVYZ[VYLZVTL[OPUNK\YPUN [OLLMÄJPLU[LMMLJ[P]LÅV^VMH[HZRWYVQLJ[ VYHJ[P]P[``V\HYLWYV]PKPUNSVNPZ[PJZ :KLOHWKHVHRUJDQL]DWLRQVKDYHGLYHUVLILHGWRLQFOXGHOR JLVWLFVDVQHHGVRURSSRUWXQLWLHVSUHVHQWHGWKHPVHOYHV8QLWHG 5HORFDWLRQV63WH/WGEHJDQDVDVXEVLGLDU\RIDIUHLJKW IRUZDUGLQJORJLVWLFVFRPSDQ\2YHUWKHFRXUVHRISOXV\HDUV 8QLWHG5HORFDWLRQVIRXQGZD\VWRH[SDQGWKHLUORJLVWLFVVHUYLFHV DQGWKHLUFXVWRPHUEDVHLQFOXGLQJIRXQGLQJDOLFHQVHGUHDOHVWDWH DJHQF\1RZWKH\RIIHU³RQHVWRSLQKRXVHVKRSSLQJFRQYH QLHQFH´DQGKDYHVHWJRDOVIRUIXUWKHUH[SDQVLRQLQWKHIXWXUH 7KHVWUDWHJ\RIVWLFNLQJZLWKZKDW\RXUFRPSDQ\GRHVEHVW KDVDOVRZRUNHGZHOOIRU1RUWK6RXWK/RJLVWLFVDWKLUGSDUW\ SURYLGHUWKDWVSHFLDOL]HVLQOLQHKDXOVHUYLFHV.HHSLQJWKHIRFXV QDUURZ³LVPRUHDSURGXFWRIRXUSKLORVRSK\WRNQRZDQGXQGHU VWDQGRXUEXVLQHVVGRWKHEHVWMREZHFDQDQGWUXVWWKDWEXVLQHVV ZLOOIROORZ´)RU1RUWK6RXWKLW¶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²\RXUPHQZRPHQDQG WUXFNV²LVWKHWKULOORIZDWFKLQJ\RXUEXVLQHVVFKDQJHDQGJURZ 769;(3796-03, /VYPaVU3PULZ0UJ! :LPaPUN4HYRL[6WWVY[\UP[` %\.HOO\'HQQLVRQ0DUNHWLQJ'LUHFWRU+RUL]RQ/LQHV + RUL]RQ/LQHV,QFLVWKHQDWLRQ¶VOHDGLQJGRPHVWLF RFHDQVKLSSLQJDQGLQWHJUDWHGORJLVWLFVFRPSDQ\7KH FRPSDQ\RZQVRUOHDVHVDIOHHWRI86IODJFRQWDLQHUVKLSV DQGRSHUDWHVILYHSRUWWHUPLQDOVOLQNLQJWKHFRQWLQHQWDO8QLWHG 6WDWHVZLWK$ODVND+DZDLL*XDP0LFURQHVLDDQG3XHUWR5LFR 7KHFRPSDQ\DOVRPDQDJHVDGRPHVWLFDQGRYHUVHDVVHUYLFH SDUWQHUQHWZRUNDQGSURYLGHVLQWHJUDWHGUHOLDEOHDQGFRVW FRPSHWLWLYHORJLVWLFVVROXWLRQV+RUL]RQ/LQHV,QFLVEDVHGLQ &KDUORWWH1RUWK&DUROLQD +RUL]RQ/LQHV¶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¶192&&EXVLQHVVPDWFKHG ZLWKWKHJURZWKRI+RUL]RQ/LQHV¶LQODQGORJLVWLFVFDSDELOLWLHV KDVJLYHQWKHFRPSDQ\WKHLQVLJKWDQGWKHFRQILGHQFHWRPRYH LWVYLVLRQIRUZDUG /VYPaVU»ZPUSHUKSVNPZ[PJZJHWHIPSP[PLZOH]LL_WHUKLK 0U[LNYH[LKVJLHUSVNPZ[PJZZVS\[PVUZ :LWK+RUL]RQ/LQHV¶QHZLQWHUQDWLRQDOOLQHUVHUYLFHOLQNLQJ&KLQD DQGWKH86WKHFRPSDQ\ZLOOEHDEOHWRSURYLGHYDULRXVOHYHOV RIVHUYLFHIURPH[SHGLWHGWUDQVLWWRGHIHUUHGGHOLYHU\DWWKHPRVW FRPSHWLWLYHPDUNHWUDWHV+RUL]RQ¶VIRFXVZLOOEHRQSURYLGLQJ WKHLQWHJUDWHGVROXWLRQWKDWEHVWILWVLWVFXVWRPHU¶VVXSSO\FKDLQ +RUL]RQ/LQHVKDVHVWDEOLVKHGWKHQHFHVVDU\IOH[LELOLW\LQLWV RSHUDWLRQVWRGHOLYHUWKHULJKWVHUYLFHDWWKHULJKWVSHHG 7KHNH\VXFFHVVIDFWRULQDQ\VXSSO\FKDLQLVDOZD\VWKH VDPHUHOLDELOLW\,ILW¶VUHOLDEOHLWFDQEHPDQDJHG8QUHOLDEOH VXSSO\FKDLQVDUHZKDWUDLVHFRVWVFXWSURILWVDQGXOWLPDWHO\SXW FRPSDQLHVDWDGLVDGYDQWDJHDJDLQVWVDYYLHUFRPSHWLWRUV7KLVLV WUXHLQGRPHVWLF-RQHV$FWPDUNHWVDQGLW¶VWUXHLQLQWHUQDWLRQDO WUDGHODQHV+RUL]RQ/LQHVKDVEXLOWLWVEXVLQHVVRQWKHSURPLVH WREH³$OZD\V7KHUH$OZD\V'HOLYHULQJ´$WWKHKHDUWRIWKDW SURPLVHLVUHOLDELOLW\ +RUL]RQ/LQHVVLPSOLILHVWKHVKLSSLQJSURFHVVIRULWV FXVWRPHUVE\SURYLGLQJHQGWRHQGRFHDQORJLVWLFVVROXWLRQV OHYHUDJLQJLWVGRPHVWLFLQODQGWUDQVSRUWDWLRQQHWZRUNLQWKH86 DQGLWVSDUWQHUQHWZRUNLQ$VLD+RUL]RQFXVWRPHUVZLOOEHDEOH WRERRNRFHDQVKLSPHQWVIURPRULJLQWRILQDOGHVWLQDWLRQZLWKRQH SURYLGHU 4PSP[HY`MVJ\ZLK 7KHQHZWUDQV3DFLILFVHUYLFHZLOODOORZ+RUL]RQ/LQHVWR FRQWLQXHWRVHUYHDQH[SDQGLQJPLOLWDU\SUHVHQFHLQ*XDPZKHUH WUDGHLVH[SHFWHGWRJURZVLJQLILFDQWO\LQFRPLQJ\HDUV7KHQHZ $VLDVHUYLFHZLOOEHLQWHJUDWHGZLWKWKHFRPSDQ\¶VH[SDQGHG ZDUHKRXVLQJDQGGLVWULEXWLRQFDSDELOLWLHVRQWKH86:HVW&RDVW WRFUHDWHDQLQWHJUDWHGLPSRUWH[SRUWVROXWLRQ IRFXVHGRQJHWWLQJDOOWKHSLHFHVLQSODFHWRSURYLGHH[SHGLWHG VHUYLFHGHOLYHU\IRUVXSSO\DQGFRQVWUXFWLRQUHODWHGFDUJRHV +RUL]RQ/LQHVKDVEXLOWDQGGHSOR\HGILYHQHZ86IODJ YHVVHOVWRDGGFDSDFLW\EHWZHHQWKH86DQG*XDP7KHVHVWDWH RIWKHDUWVKLSVFRPELQHVSHHGHQHUJ\HIILFLHQF\DQGFDSDFLW\ IRUPRUHWKDQVWDQGDUGFRQWDLQHUV+RUL]RQ/LQHVKDVWKHVSDFH IRUVSHFLDOKDQGOLQJ²LQFOXGLQJPRUHWKDQUHIULJHUDWHG FRQWDLQHUVORWVDQGRXWRIJDXJHIODWUDFNV7KHVSHHGDQG HIILFLHQF\RIWKHQHZVKLSVFRXSOHGZLWKWKHEHVWRSHUDWLRQVWHDP LQWKHEXVLQHVVJLYHV+RUL]RQ/LQHV¶FXVWRPHUVWKHILUVWDUULYDO LQWR*XDPHDFKZHHN /VYPaVU3PULZI\PS[HUKKLWSV`LKÄ]LUL^<:ÅHN]LZZLSZ[VHKK JHWHJP[`IL[^LLU[OL<:HUK.\HT (JSLHY]PZPVU 7UDGHLVWKHVLQJOHPRVWLPSRUWDQWGULYHURIHFRQRPLFSURVSHULW\ LQWKHZRUOGDQGRFHDQIUHLJKWLVWKHVLQJOHPRVWLPSRUWDQW PRGHRIWUDQVSRUWDWLRQIRUWUDGH+RUL]RQ/LQHVFXVWRPHUVZDQW VLPSOLFLW\DQGUHOLDELOLW\DQGWKH\ZDQWWRRSHUDWHWKHLUVXSSO\ FKDLQPRUHHIILFLHQWO\WKDQHYHU\RQHHOVH7KDW¶VZKDW+RUL]RQ /LQHVGRHV 7KH86PLOLWDU\SODQVWRUHGHSOR\WKRXVDQGVRI0DULQHV DQGWKHLUIDPLOLHVIURPWKH-DSDQHVHLVODQGRI2NLQDZD7KH SRSXODWLRQRI*XDPLVH[SHFWHGWRLQFUHDVHE\SHUFHQWLQWKH QH[WIRXU\HDUV6LQFHWKHDQQRXQFHPHQWRIWKH86PLOLWDU\ UHGHSOR\PHQWSODQWKH+RUL]RQ/LQHVWHDPKDVEHHQZKROO\ /VYPaVU3PULZ0UJ 76*!,K)LY[P+PYLJ[VY4PSP[HY` .V]LYUTLU[:LY]PJLZ ;LS! -LLSPUN3\JR`& +VU»[TPZZ*HZPUV5PNO[·HM\UKYHPZLY [VILULÄ[[OL(SHU->VOSZ[L[[LY :JOVSHYZOPW-\UK·H[0(4»Z[O (UU\HS4LL[PUN -VYKL[HPSZZLLWHNL 769;(3796-03, ;OL7HZOH.YV\W!3VNPZ[PJHSS`-VJ\ZLK %\.HLWK7RXQJHW'LUHFWRURI*RYHUQPHQW6ROXWLRQV3DVKD5HORFDWLRQ6HUYLFHV 7 KH3DVKD*URXSVSULQJVIURPDVPDOO6DQ)UDQFLVFRSRUW RSHUDWLRQSURYLGLQJVWRUDJHIRUSULYDWHO\RZQHGYHKLFOHVRI :RUOG:DU,,SHUVRQQHODVVLJQHGRYHUVHDV7KHFUHDWLRQRIDQDI ILOLDWHGWUXFNDZD\RSHUDWLRQDQGWKHERRPLQLPSRUWHGDXWRPR ELOHVDIWHU::,,JDYHWKHFRPSDQ\WKHLPSHWXVWRH[SDQGLQWR H[WHQVLYHDXWRPRWLYHSURFHVVLQJDQGORJLVWLFVRSHUDWLRQVIRUQHZ DQGUHPDUNHWHGYHKLFOHV $VWKHFRPSDQ\¶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`V^ULK ]LOPJSLZHYLOV\ZLKPUH :WY\UNZ[Y\J[\YLPU/H^HPP 0UZL[![OLTHZZP]L:WY\UN JHTW\ZJV]LYZHJYLZ DOO\RZQHGYHKLFOHV:RUOGZLGHPRYHPHQWDQGVWRUDJHRI KRXVHKROGJRRGVDQGSHUVRQDOO\RZQHGYHKLFOHVIRUPLOLWDU\ DQGJRYHUQPHQWHPSOR\HHV 7UDQVSRUWDWLRQVHUYLFHV3DVKDLVDVXEFRQWUDFWRUIRUWKH *OREDO3ULYDWHO\2ZQHG9HKLFOH&RQWUDFWZKLFKSURYLGHV WUDQVSRUWDWLRQDQGVWRUDJHRISULYDWHO\RZQHGYHKLFOHVRI PLOLWDU\SHUVRQQHOGHSHQGHQWVDQG'2'FLYLOLDQV ,QWHUQDWLRQDOORJLVWLFVVHUYLFHV3DVKD¶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¶YHSURYLGHGWUDQVSRUWDWLRQDQG ORJLVWLFVVHUYLFHVWRWKH86PLOLWDU\IRUPDQ\\HDUVDQGWKH\ FRQWLQXHWRRIIHUXVFKDOOHQJLQJDVVLJQPHQWVHVSHFLDOO\LQPRY LQJWKHLURYHUVL]HGHTXLSPHQWWRDQGIURP+DZDLL2XUKLJKO\ IXQFWLRQDOYHVVHO09-HDQ$QQHFDQEHUHFRQILJXUHGWRDFFRP PRGDWHEXON\PLOLWDU\HTXLSPHQW²WRLQFOXGHDQHQWLUHEULJDGH RI&KLQRRNKHOLFRSWHUV6LPLODUFDSDELOLWLHVH[LVWIRUFRPPHUFLDO FXVWRPHUV,QZHPRYHGWRQVRIHOHFWULFSRZHUHTXLS PHQWWR+DZDLLIRU6LHPHQVLQFOXGLQJDSRXQGWXUELQH DQGDSRXQGJHQHUDWRU$OOGLYHUVLILFDWLRQGHFLVLRQVKDYH EHHQWDNHQEDVHGRQZKHUHZHFRXOGHQYLVLRQFRPSOHPHQWDU\ YDOXHWRH[LVWLQJVHUYLFHVRUDWWKHUHTXHVWRIH[LVWLQJFXVWRPHUV 'XHWRVWUDWHJLFUHODWLRQVKLSVLQ2NLQDZDDQGPDLQODQG -DSDQZHKDYHEHHQDEOHWRRIIHUVXSSO\FKDLQPDQDJHPHQWVHU YLFHVWRFXVWRPHUVRQERWKVLGHVRIWKH3DFLILF:H¶YHDOVRIRXQG VXFFHVVLQVSHFLDOL]HGSURMHFWORJLVWLFVWKURXJKRXWWKH3DFLILF 5LP,QUHFHQW\HDUVZH¶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¶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³FDQGR´DWWLWXGHWRWKH SURMHFW3URPSWVKLSPHQWRIWKHVHVHPLSHUPDQHQWVWUXFWXUHVWR +DZDLLDOORZHGWKHLUUDSLGHUHFWLRQRQHDIWHUWKHRWKHUHYHQDV SURFHVVLQJRSHUDWLRQVEHJDQLQHDUQHVW7KHIDFLOLW\LQ+DZDLL WRGD\FRYHUVDFUHVZLWKXQLTXH6SUXQJVWUXFWXUHVDOORZLQJ VTXDUHIHHWRISURWHFWHGVWRUDJH7KLVKDVSURYHQWREH DQH[FHSWLRQDOVROXWLRQWRPHHWLQJWKHPLOLWDU\¶VVWRUDJHUHTXLUH PHQWV7KHFRQWUDFWFDOOVIRUWKHPDLQWHQDQFHRI329VDQG %DUEHUV3RLQWVLWHSHUVRQQHOFDQSURFHVVPRUHWKDQ329VD GD\,QFROODERUDWLRQZLWKRXUDJHQW:HVW3DF,QWHUQDWLRQDO3DVKD GHOLYHUVVHUYLFHYLDDFDSDEOHVWDIIWKDWLQFOXGHVFXVWRPHUVHUYLFH UHSUHVHQWDWLYHVFODLPVSHFLDOLVWVDXWRVXUYH\RUVPHFKDQLFV GULYHUVDQGVWDWHFHUWLILHGLQVSHFWRUV7RVXFFHHGLQWRGD\¶VHQYL URQPHQWZHPXVWKDYHWKLVW\SHRIUDSLGUHDFWLRQFDSDELOLW\ :HDUHSDUWLFXODUO\RSWLPLVWLFDERXWWKHPDUNHWVZHVHUYHLQ 1RUWKHDVW$VLD:HORRNIRUZDUGWRWKHEXLOGXSRI86PLOLWDU\ IDFLOLWLHVDQGSHUVRQQHOLQ*XDPDQGH[SHFWLWWRMXPSVWDUWD JHQHUDOHFRQRPLFVXUJHIRUWKHLVODQG:HKRSHWRVHHDVPDOO PDUNHWJURZWRDODUJHRQHWKHUHDQGDUHUHDG\WRVXSSRUWRXU FRPPHUFLDOFXVWRPHUVZLWKVXSSO\FKDLQPDQDJHPHQWDVZHOODV PLOLWDU\VXSSRUWVHUYLFHV ;OL7HZOH.YV\W 76*!4PZZ`+VUULSS`VY-YHUJLZJH=VSSHYV ,THPS!HIV\['WHZOHUL[ >LIZP[L!^^^WHZOHNYV\WJVT *OPUVVRZ[V^HNLWYPVY[VTVKPÄJH[PVUVMHKLJRVU[OL1LHU(UUL [OH[WLYTP[ZLHZPLY[YHUZWVY[H[PVUVM[OLOLSPJVW[LYZ 769;(3796-03, )PZOVW»Z4V]L!6YJOLZ[YH[PUNH-PULS`;\ULK9LSVJH[PVU % LVKRS¶V0RYHWKH8.¶VODUJHVW SULYDWHO\RZQHGUHPRYDOFRPSDQ\ UHFHQWO\ZDVLQYROYHGLQWKHUHORFDWLRQRI PXVLFLDQVHPEDUNLQJRQDQHZDGYHQWXUH VWDUWLQJDQHZOLIHLQ7ULQLGDGDQG7REDJR WRVHWXSWKH1DWLRQDO3KLOKDUPRQLF2U FKHVWUDRI7ULQLGDGDQG7REDJR 7KH1DWLRQDO3KLOKDUPRQLF2UFKHV WUDMXVWRQHRIPDQ\VLJQLILFDQWHOHPHQWV RI7ULQLGDGDQG7REDJR¶V³9LVLRQ´ QDWLRQDOVWUDWHJLFSODQZLOORSHUDWHDORQJ VLGHWKH1DWLRQDO6WHHO6\PSKRQ\DQG WKH1DWLRQDO7KHDWUH$UWV&RPSDQ\ZLWK WKHFRPPRQDLPRIGHYHORSLQJFUHDWLYH WDOHQWDQGH[SUHVVLRQWKURXJKPXVLFDODQG WKHDWULFDOH[SORUDWLRQDQGHGXFDWLRQ 7KHLPSUHVVLYH1DWLRQDO$FDGHP\IRU WKH3HUIRUPLQJ$UWVLVSRVLWLRQHGLQ3RUW RI6SDLQLQWKHKHDUWRIWKHQDWLRQ¶VFDSL WDODQGLVWKHKRPHIRUWKHGHYHORSPHQW RIWDOHQWLQWKHSHUIRUPLQJDUWVLQ7ULQLGDG DQG7REDJR7KHYLVXDOO\VWXQQLQJDUFKL WHFWXUDOGHVLJQHYRNHVWKHQDWLRQDOIORZHU WKHFKDFRQLDDQGIHDWXUHVVWDWHRIWKHDUW DFRXVWLFVRIIHULQJDXQLTXHDQGLQVSLUD WLRQDOOHDUQLQJHQYLURQPHQW $FFODLPHGWURPERQLVW$LGDQ&KDP EHUODLQUHFDOOHGWKHGD\VOHDGLQJXSWR WKHELJPRYH³2QP\PDQ\WULSVXS DQGGRZQWKH0´KHVDLG³DV,ZHQW EHWZHHQ&DUGLIIZKHUHP\ZLIHZRUNHG DQG/RQGRQZKHUH,ZRUNHG,RIWHQVDZ %LVKRS¶V0RYHWUXFNVZLWKWKHLUGLVWLQF WLYHFKHVVSLHFHORJR,ZRQGHUHGLI, ZRXOGHYHUQHHGDQRWKHUPRYLQJFRPSDQ\ DIWHUP\PRYHVWRDQGIURP+RQJ.RQJ, ZDVZRUNLQJLQ/RQGRQDQGWKHVRXWKHDVW DVDIUHHODQFHPXVLFLDQDQGP\ZLIHZDV ZRUNLQJIRUWKH%%&1DWLRQDO2UFKHVWUD RI:DOHVLQ&DUGLIIZKLFKPHDQWDORWRI WLPHRQWKHURDGEXWWKDW¶VRIWHQWKHFDVH ZLWKDQRUFKHVWUDOPXVLFLDQ2UFKHVWUDV WHQGWRYLVLWYDULRXVFRQFHUWKDOOVWKURXJK RXWWKH8.DQG(XURSHDQGDV,ZDV ZRUNLQJZLWKPDQ\GLIIHUHQWRUFKHVWUDV IURP&RYHQW*DUGHQ2SHUD+RXVHWR&LW\ RI%LUPLQJKDP6\PSKRQ\2UFKHVWUD, ZDVWUDYHOLQJPRUHWKDQPRVW ³7KHQFDPHDSKRQHFDOOVXJJHVWLQJ WKDW,PLJKWDSSO\IRUDMRELQ7ULQLGDG, KDYHWRDGPLW,KDGWRJHWWKHDWODVRXWEXW DIWHUFRQVLGHULQJOLIHLQWKH&DULEEHDQIRU DIHZVHFRQGV,JRWRQWKHFRPSXWHUDQG DVPXFKLQSODFHDVSRVVLEOHEXWOHDYLQJ EODQNVZKHUH,GLGQ¶WKDYHDQVZHUV ³0HDQZKLOH,VWDUWHGHPDLOLQJDQG PHHWLQJZLWKRWKHUPXVLFLDQVLQ/RQGRQ ZKRKDGEHHQRIIHUHGSRVLWLRQVLQWKHQHZ RUFKHVWUD:HWDONHGDERXWZKDWPLJKW KDSSHQDQGZKDWLWPLJKWEHOLNHOLYLQJLQ 7ULQLGDG'HWDLOVDOOVHHPHGDELWYDJXH EXWWKHH[FLWHPHQWZDVSDOSDEOH ³%LVKRS¶V0RYHKDGDMRERQWKHLU KDQGV,KDGVWXIILQP\/RQGRQEDVHDQG LQVWRUDJHLQ&DUGLIIDQGWKLQJVZHUHJHW WLQJDELWODVWPLQXWH6SDFHRQDVKLSKDG EHHQDOORFDWHGDQGDVDLOGDWHZDVVHW´ $LGDQ&KDPEHUODLQKLVZLIHDQG WKHLUWZRVRQVZHUHDPRQJWKHILUVWWR DUULYHLQ7ULQLGDG7KHUHDUHQRZPXVL FLDQVZLWKPRUHVWLOOWRFRPH7KHRU FKHVWUDLVVWLOOEHLQJDVVHPEOHGKRZHYHU FRQFHUWVDUHVWDUWLQJWREHRUJDQL]HG7KH ;YVTIVUPZ[(PKHU*OHTILYSHPUHUKOPZ %DFKHORULQ)LQH$UWVGHJUHHFRXUVHVZLOO MHTPS`ZL[[SLKPUUPJLS`HM[LYHSVNPZ[PJHSS` VWDUWLQ6HSWHPEHUDWWKHQHZDFDGHP\ JVTWSL_TV]L[V;YPUPKHKHUK;VIHNV PHDQZKLOHWKHPXVLFLDQVDUHWHDFKLQJDW YDULRXVFRPPXQLW\PXVLFFHQWHUVDQGSXW WLQJRQFKDPEHUPXVLFFRQFHUWVLQRUGHUWR VHQWRIIP\&97KHMRELQTXHVWLRQZDVWR WU\WRHQFRXUDJHORFDOLQWHUHVWLQFODVVLFDO SOD\LQWKH1DWLRQDO3KLOKDUPRQLFRI7ULQL PXVLF7KH&KDPEHUODLQVKDYHVHWWOHG GDGDQG7REDJRZKLFKZDVLQWKHSURFHVV LQWRWKHLUQHZKRPHDQGFRPPXQLW\²D RIEHLQJIRUPHG>DVZHOODV@WHDFKLQJDW FKDQJHWKH\UHSRUWWKH\DUH³WKRURXJKO\ WKHFRQVHUYDWRU\DOVRVWLOOWREHIRUPHG HQMR\LQJ´ ,WVHHPHGOLNHDQH[FLWLQJSURVSHFWDQGDQ -XOLH.QDSWRQLQWHUQDWLRQDOPDQ LQWHUHVWLQJQHZYHQWXUHDQGQHZOLIHIRU DJHUDW%LVKRS¶V0RYHFRPPHQWHG³:H RXUWZRVRQV XQGHUVWDQGKRZGDXQWLQJLWPXVWEHIRU ³)RXUPRQWKVODWHU,¶PORRNLQJIRUD DILUVWWLPHHPLJUDQWPRYLQJWKHLUKRPH UHPRYDOFRPSDQ\DQG,UHPHPEHUHGWKRVH DQGIDPLOLHVWRIDUIOXQJSODFHV2EWDLQ WUXFNVRQWKH0,KDGDOVRUHFHQWO\XVHG LQJFOHDUDQGFRQFLVHLQIRUPDWLRQRQZKDW RWKHUFRPSDQLHVIRUYDULRXVUHDVRQVDQG SDSHUZRUNLVUHTXLUHGFDQEHYHU\GLIIL RIFRXUVH\RXFDQGRD:HEVHDUFKIRUWKH FXOWDQGLIQRWFRUUHFWFDQUHVXOWLQFRVWO\ EHVWTXRWH«%LVKRS¶V0RYHGLGQ¶WFRPH GHOD\VERWKLQILQDQFLDOWHUPVDQGDGGL EDFNWKHFKHDSHVWEXWWKH\ZHUHQ¶WPXFK WLRQDOVWUHVVDQGZRUU\:LWKRXUGHGLFDWHG PRUHH[SHQVLYHHLWKHU+RZHYHUWKH\GLG PRYHFRRUGLQDWRUVZHFDQHQVXUHWKDWRXU JHWEDFNWRPHZLWKDFRPSUHKHQVLYHOLVW FRPPLWPHQWWRTXDOLW\LVPDLQWDLQHGZKLOH RIKRZWRSURFHHGDQGSURYLGHG3')ILOHV SURYLGLQJDIULHQGO\YRLFHDWWKHRWKHUHQG RIIRUPVQHHGHG7KLVDOOORRNHGPRUHSUR RIWKHSKRQHWKDWFDQRIIHUXSVROXWLRQVWR IHVVLRQDOWKDQWKHRWKHURXWILWVVR,JDYH DQ\SUREOHPVWKHUHORFDWHHPD\UXQLQWR WKHPDFDOO 7KHUHDUHQ¶WPDQ\VLWXDWLRQVZHKDYHQ¶W ³%\WKLVVWDJH,ZDVDOUHDG\H[SHUL HQFRXQWHUHG´ HQFLQJWKH&DULEEHDQZD\RIEXVLQHVV, KDGDMRERIIHUEXWQRVWDUWGDWHQRZRUN )PZOVW»Z4V]L SHUPLWDQGQRDGGUHVV7KLVZDVDOVR 76*!5PJRP*OHTHYL[[L OLNHO\WREHWKHFDVHXQWLOWKHODVWPLQXWH ,THPS! 7KHUHIRUH,QHHGHGDFRPSDQ\WKDWFRXOG ZRUNZLWKP\VLWXDWLRQ$JDLQ%LVKRS¶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³7KHWUHQGWRZDUGUHDOHVWDWHGLYHUVLIL FDWLRQKDVEURXJKWJRRGUHWXUQVIRUWKH UHORFDWLRQEXVLQHVV´VD\V-RQQ6+7DQ PDQDJLQJGLUHFWRURI8QLWHG5HORFDWLRQV ³DVPRVWH[SDWULDWHVDQGKXPDQUHVRXUFHV RIILFHVZRXOGKDYHWRLQIRUPWKHODQGORUG DWOHDVWIRXUPRQWKVLQDGYDQFHRIWKHLU LQWHQWLRQWRVWD\RUOHDYH7KLVDFWXDOO\ JLYHVXVHDUO\LQIRUPDWLRQRIDQLPSHQG LQJUHORFDWLRQMRE´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²RQHWKDWDOVRKDVDQDFFUHG LWHGUHORFDWLRQFRPSDQ\²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³ORRNVHHRULHQWDWLRQ´DVVLVWDQFH³:HDUH DQ,($DQG6$($DFFUHGLWHGPHPEHUZLWK WZRGHFDGHVRIPRYLQJH[SHULHQFH´VDLG 7DQ³DQGDUHFRPPLWWHGWRWUDQVSDUHQF\ DVZHZRUNZLWKRXUFRUSRUDWHFOLHQWV:H DUH),',)$,0DQG,62DFFUHGLWHGWR HQVXUHDFDUHIXOGDPDJHIUHHPRYHHDFK DQGHYHU\WLPH´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¶SURFHVV E\IRFXVLQJRQZKDWLVPRVWLPSRUWDQW WRWKHPLHUHTXLUHGGHOLYHU\GDWHVDQG DFFXUDWHLQIRUPDWLRQRQGHPDQG6RIDU ZH¶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¶V VRPHWLPHVEHQHILFLDOIRUDOOWRFUDWHDQG IUHLJKWLW 5VY[O:V\[O3VNPZ[PJZ0UJ 76*!:[L]L:[\[[Z ,THPS!UZSVWYLa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¶V1HZDUNDQG(OL]DEHWK WHUPLQDOVZHDOVRKDYHIDFLOLWLHVLQ'DOODV$WODQWD/RV$QJH OHV6DQ)UDQFLVFRDQG&KLFDJR'$6*OREDO6HUYLFHVZLOOVKLS RXWRIDQ\PDMRUVHDSRUWIURP7DFRPD:DVKLQJWRQWR0LDPL )ORULGD 0RVWRIRXULQWHUQDWLRQDOVKLSPHQWVPRYHYLDFRQWDLQHU DOWKRXJKZHPRYHDVLJQLILFDQWDPRXQWRIYHKLFOHVZLWKUROO RQUROORIIFDUULHUV7KLVLVGULYHQE\RXUFOLHQWV¶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¶VSHFLILFQHHGV +(:[`WPJHSS` JVUZVSPKH[LZ [OYV\NO[OLJVU [HPULYPaH[PVUVM ]LOPJSLZVM[LU W\[[PUN[OYLLVY MV\YJHYZPUH JVU[HPULY +(:TV]LZ ]LOPJSLZJVTIPULK KVTLZ[PJHSS`HUKPU[LY UH[PVUHSS`HZ^LSSHZ \U\Z\HSLX\PWTLU[SPRL ZTHSSWSHULZOLSPJVW[LYZ JSHZZPJJHYZHUKZWLJPHS Pa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` 0 U[LYLZ[PUNS`\U[PS]LY`YLJLU[S`[OLNSVIHSYLJLZZPVU OHZILLUWHY[PHSS`VMMZL[I`[OL^LHRKVSSHY^OPJOOHZ NP]LU,\YVWLHUZJVUZPKLYHISLI\`PUNWV^LY:PTPSHYS` ZL]LYHS`LHYZHNV^OLU[OLY\ISLPUJYLHZLKPU]HS\L ZOPWTLU[Z[V9\ZZPHYVZL"+(:^HZZOPWWPUNHIV\[ JVU[HPULYZH^LLR[V9\ZZPHVY-PUSHUK;OLJVT WHU`OVWLZ[OH[^PSSZLLPUJYLHZLKHJ[P]P[`HZ[OL LJVUVT`ILNPUZ[VYLJV]LY ·:JV[[3H-VYNL+(:.SVIHS:LY]PJLZ0UJ @7,SLJ[PVUZ! *HSSMVY5VTPUH[PVUZ 7 YPVY[V[OL0(4(UU\HS4LL[PUN[OL@7VYNHUPaH[PVU^PSSJVUK\J[LSLJ[PVUZ MVY*OHPYHUK=PJL*OHPY(U`@7TLTILYPUNVVKZ[HUKPUNPZLSPNPISL[VY\UMVY [OVZLWVZP[PVUZ ;VUVTPUH[L`V\YZLSMVYZVTLVULLSZLMVYLP[OLYVM[OLZLWVZP[PVUZWSLHZLJVU[HJ[ )YPHU3PTWLYVW\SVZH[)YPHU3PTWLYVW\SVZ'0(4V]LYZVYNVY 04769;(5;!;OLKLHKSPULMVYUVTPUH[PVUZPZ>LKULZKH`1\UL =PZP[^^^`WVYNHUKYL]PL^[OL@7)`SH^ZMVYPUMVYTH[PVUHIV\[[OL YLZWVUZPIPSP[PLZ[OLZLWVZP[PVUZLU[HPS,SLJ[PVUZHYLOLSKVUSPULHUKYLZ\S[Z^PSSIL HUUV\UJLKH[0(4»Z[O(UU\HS4LL[PUN@V\JHUÄUKKPZJ\ZZPVUZHIV\[[OLM\[\YLVM [OLVYNHUPaH[PVUHUK^OVPZILZ[LX\PWWLK[VSLHKP[VU[OL@7-HJLIVVRWHNL ATTENTION YP-35 MEMBERS 7 SLHZLJOLJR`V\YJVU[HJ[KL[HPSZHUKLTHPS HKKYLZZVU[OL@7^LIZP[L^^^`WVYN HUKSL[\ZRUV^PMHU`JVYYLJ[PVUZULLK[VILTHKL ZV[OH[^LTH`WYVWLYS`JVU[HJ[`V\HUKRLLW `V\PUMVYTLK7SLHZLLUZ\YL[OH[`V\YIPY[OKH[LPZ SPZ[LK0M`V\OH]LKPMÄJ\S[`HJJLZZPUN[OL^LIZP[L VYPM`V\OH]LX\LZ[PVUZVYPKLHZJVUJLYUPUN@7 VY[VZ\WWS``V\Y\WKH[LKJVU[HJ[PUMVYTH[PVU WSLHZLLTHPS)YPHU3PTWLYVW\SVZ'0(4V]LYZJVT *OLJR<Z6\[VU-HJLIVVR 0 M`V\HYLVYOH]LILLUH@7TLTILYHUKHYLVU -HJLIVVRWSLHZLZLHYJOMVY¸@7¹VU[OLZVJPHSTLKPH ^LIZP[LHUKYLX\LZ[[VQVPU[OL0(4@7NYV\WWHNL 6\Y-HJLIVVRNYV\WWHNLZLY]LZHZHMVY\TMVY@7Z[VKPZ J\ZZPUK\Z[Y`L_WLYPLUJLZHUKZOHYLPKLHZ VUOV^[VPTWYV]L[OL@70[»ZHNYLH[ ^H`[VZ[H`JVUULJ[LK^P[OJVSSLHN\LZHUK MYPLUKZ[OYV\NOV\[[OL^VYSK (ZTHU`JVTWHUPLZOH]LYLZ[YPJ[LK HJJLZZ[V-HJLIVVRZVTL@7ZJHUZPNUVU VUS`K\YPUN[OLPYMYLL[PTL;OLYLMVYL^LLUJV\YHNL HSSTLTILYZ[VWVZ[HU`[OPUN`V\MLLS^V\SKILVM PU[LYLZ[[V[OLNYV\WPUJS\KPUNWOV[VZHUKQVRLZHZ H^H`[VRLLW[OLWHNLSPNO[OLHY[LKHUKM\U[V]PZP[ >LIZP[L!^^^`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¶ $%%$,QWHUQDWLRQDO -DPHV7KRPSVRQ-U&URZQ:RUOGZLGH LQPHPRU\RI-DPHV7KRPSVRQ6U 'D\FRV 'H:LWW0RYLQJ6WRUDJHLQPHPRU\RI :RRGURZ:'H:LWW *RVVHOLQ*URXS19 0DWVRQ1DYLJDWLRQ&RPSDQ\ 5R\DO+DZDLLDQ0RYHUV 6XGGDWK*RYHUQPHQW6HUYLFHV,QFLQ KRQRURI4XLQQ%HOODQG05LFKDUGVRQ 7KH3DVKD*URXS $ODQ):RKOVWHWWHU-U :PS]LY¶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¶V7UDIILF7UDQVSRUWDWLRQ &OXERI7DFRPD :RUOG,QWHUQDWLRQDO)RUZDUGLQJ&R :RUOGZLGH0RYLQJ6WRUDJH,QF )YVUaL¶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³%´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`:\P[L(SL_HUKYPH=(7OVUL! -H_! 7KH%RDUGRI'LUHFWRUVRIWKH$ODQ):RKOVWHWWHU6FKRODUVKLS)XQGXUJHV\RXWRFRQVLGHUDFRQWULEXWLRQRUGRQDWLRQWRWKH6FKRODU VKLS)XQGDVSDUWRI\RXU\HDUHQGWD[VWUDWHJ\RUDV\RXIRUPXODWH\RXUFRPSDQ\EXGJHW3OHDVHDGYLVH\RXUHPSOR\HHVWKDWVFKRO DUVKLSVDUHDYDLODEOHWRTXDOLILHGFDQGLGDWHVRIDQ\,$0FRPSDQ\ZRUOGZLGH)RUIXUWKHULQIRUPDWLRQZZZDIZVFKRODUVKLSRUJ (7YVK\J[P]LHUK4LTVYHISL@V\UN4V]LYZ*VUMLYLUJL 7 KH<RXQJ0RYHUVRI)('(0$& KHOGWKHLUDQQXDOFRQIHUHQFHLQ5RPH 0D\±$V)('(0$&¶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¶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¶)DUUHOOIURP3ULQFLSDO 5HORFDWLRQ&RPSDQ\URXQGHGRXWWKH SURJUDPE\GLVFXVVLQJKRZWKH<RXQJ 0RYHUVFRXOGEHQHILWE\XWLOL]LQJUHORFD WLRQVHUYLFHVIRUWKHLUFOLHQWV5HORFDWLRQ FRPSDQLHVRIIHUDZLGHYDULHW\RIVHUYLFHV GHVLJQHGWRHDVHDQH[SDW¶VWUDQVLWLRQLQWR WKHQHZFRXQWU\2EWDLQLQJYLVDVILQGLQJ KRXVLQJVHOHFWLQJVFKRROVDQGGHWHUPLQ LQJWD[HVDUHDPRQJWKHVHUYLFHVWKDWWKHVH FRPSDQLHVSURYLGHWRQHZUHVLGHQWV0DQ\ FOLHQWVILQGUHORFDWLRQVHUYLFHVYHU\KHOS IXOZKHQWKH\DUHWU\LQJWRDGMXVWWRDQHZ FXOWXUHDQGDUHOLNHO\WREHPRUHVDWLVILHG DWWKHHQGRIWKHPRYHDVDUHVXOW ,QDGGLWLRQWRWKHLQIRUPDWLYHVHV (IPYK»ZL`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¶LWDOLDQD7KHSOD\ZDVZULW VKRZLQJWKHEHDXWLIXOVFHQHU\RIWKHLU WHQE\WKHLPPHGLDWHSDVWSUHVLGHQWRI FRXQWU\DQGSURPLVLQJWROLYHXSWKHKLJK )('(0$&'HQLV&DXILHOGDQGIHDWXUHG VWDQGDUGVVHWE\RXU,WDOLDQKRVWV -YVTSLM[!4HYJV9PNOL[[P:[LWOHU.L\Y[Z1Y3HRLSHU-LUULSS(T`5PSZVUHUK)YPHU 3PTWLYVW\SVZ7OV[V!1HTLZ)YVNNP '"!%'#) '!&# #$"( '!&#$$( "' ! %%! &'#$+-($%)(%&$#-$)& $"%#-'&%)(($#$)*&# ((&$)-&'$%&$*#&! !'&*#-)!#'(&$# &!($#'%'$(+(-$)&)'($" &'#+(-$)&$!!)'#( #)'(&- #(('#$(!!$*&##""&' &""" &'"! *!!($#$$(&""&' #!)# $+-$)#'($(((-$)# -$)&$"%#-&&$#.' !&'+(#$)&%&$''$#- # &# !" $ !""#! r &""!!'(# &($&- $*&##"&'%' '#$&($'$"%#'+(( ,%&##('&($'% $& (#)'(&-'+$!$)&)# +!!!%)''+$)'$)&'(&(- #(-&'##&()&# $&'-$)(&$#($#-$)* &#!)'(''($#$&" ($##$#(('((-$)'#)'(&- !&',%( r%!"!/!%(!# $&%!/#%&#(# $#!#"&'%&($&' r !#" & # " !" " "$&!!$ -$)&$"%#-'((#'&& !''$+#(-&'(& r!#"$#&)!&,($& '((##)!(# r !#! "!($ ".#','')'%&-& r""!#"$&* !&$(($#&$&" r""" #' !""$!($%&(%(#( $)#&$''$#!'&$)% (#$($#! r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¶WDUHWKHFRUHYDOXHVWKDWVKDSHGWKHFRPSDQ\ ([OPYKWHY[`SVNPZ[PJZSLHKLY :KLOHIRUZDUGLQJDQGFDUU\LQJKRXVHKROGJRRGVERWKFRPPHU FLDODQGPLOLWDU\ZDVDVWDSOHRIRXUVWDUWDQGDVWDSOHRIWRGD\¶V EXVLQHVVMXVWOLNHWKHLQGXVWU\ZHKDYHGLYHUVLILHGDQGH[SDQGHG RXUOLQHVRIORJLVWLFVVHUYLFHV)URPOHVVWKDQWUXFNORDG/7/WR IXOOWUXFNORDG)7/IURPORFDOWUXFNLQJLQ:DVKLQJWRQ&DOLIRU QLDDQG1HZ+DPSVKLUHWRGDLO\H[SRUWVHUYLFHWR&DQDGDIURP EURNHUDJHWUDQVSRUWDWLRQVROXWLRQVWRGHVLJQLQJDQGPDQDJLQJ VXSSO\FKDLQORJLVWLFV36,LVSURXGRILWVSRVLWLRQDVDOHDGHULQ WKHWKLUGSDUW\ORJLVWLFVLQGXVWU\ :HRSHUDWHPRUHWKDQVTXDUHIHHWRIZDUHKRXVLQJ VSDFHLQWKUHHPDMRUPDUNHWV2XU&DOLIRUQLDDQG:DVKLQJWRQ ZDUHKRXVHVDUHFRQYHQLHQWO\ORFDWHGQH[WWRSRUWVZLWK36,¶V7D FRPDZDUHKRXVHGHVLJQDWHGDVD86)RUHLJQ7UDGH=RQHZKLFK DOORZVWKHVWRUDJHRIPHUFKDQGLVHZKLOHZDLWLQJIRUIDYRUDEOH PDUNHWFRQGLWLRQVRUIRULQYHQWRU\DQGFDVKIORZSXUSRVHV36, DOVRRSHUDWHVWZRGHGLFDWHGFURVVGRFNGLVWULEXWLRQFHQWHUVIRU 6DP¶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`]PZPVU 5HFHQWO\ZHH[SHULHQFHGDOHDGHUVKLSFKDQJHDW36,ZKHQ-LP :HOOPDQSXUFKDVHGWKHFRPSDQ\LQ2FWREHU-LPEULQJV H[WHQVLYHH[SHULHQFHDVDVHQLRUEXVLQHVVPDQDJHULQWKHWKLUG SDUW\ORJLVWLFVLQGXVWU\0RVWUHFHQWO\KHZDVVHQLRUGLUHFWRURI RSHUDWLRQVDQGGHYHORSPHQWDW([HO/RJLVWLFVDSDUWRI'+/ VXSSO\FKDLQLQWKHFKHPLFDOVHFWRUKHDGTXDUWHUHGLQ&ROXPEXV 2KLR-LPGLUHFWHGDEXVLQHVVVHJPHQWWKDWJHQHUDWHGUHYHQXHRI PLOOLRQZKLOHPDQDJLQJQHDUO\PLOOLRQLQFXVWRPHUV¶ ORJLVWLFVVSHQGLQJ -LPZKRKDVDGHJUHHLQPHFKDQLFDOHQJLQHHULQJEHJDQ KLVFDUHHUDVDVRIWZDUHGHYHORSPHQWHQJLQHHULQWKHDHURVSDFH 7\NL[ :V\UK 0U[LYUH [PVUHSOLHK X\HY[LYZPU ;HJVTH >HZOPUN[VU DQGWHOHFRPPXQLFDWLRQVLQGXVWU\'XULQJKLVFDUHHU-LPGLUHFWHG VHYHUDORSHUDWLRQDOWXUQDURXQGVQHZEXVLQHVVVWDUWXSVDQG,7 LPSOHPHQWDWLRQVLQERWKWKH8QLWHG6WDWHVDQG$VLD+H¶VEHHQ DVLJQLILFDQWFRQWULEXWRUWRVWUDWHJ\GHYHORSPHQWDQGEXVLQHVV SURFHVVUHHQJLQHHULQJ :LWKRXWTXHVWLRQ-LPKDVEURXJKWDZKROHQHZGLPHQVLRQWR 36,+H¶VDPDVWHUDWLGHQWLI\LQJGHPDQGWUHQGVDQGKH¶VEURXJKW DOHYHORIH[FLWHPHQWWKDWKDVDOORIXVDW36,ZRUNLQJWRJHWKHUWR WUDQVIRUPWKHEXVLQHVVELWE\ELW,¶PFRQILGHQWWKDW36,QRWRQO\ ZLOOPDLQWDLQLWVSRVLWLRQDVDWKLUGSDUW\ORJLVWLFVOHDGHU²LWZLOO DOVRHDUQDQGGHYHORSDUHSXWDWLRQDVDVROXWLRQEDVHGFRPSDQ\ (M\[\YLMVJ\ZLKVU[\YURL`ZVS\[PVUZ :H¶UHPRYLQJWRZDUGEHFRPLQJDSURYLGHURIWXUQNH\VROXWLRQV IRURXUFXVWRPHUVWKURXJKDGLVWULEXWLRQQHWZRUNDSSURDFK:H NQRZWKDWLW¶VQRWMXVWDERXWFRVWVDYLQJVIRURXUFXVWRPHUVLW¶V DOVRDERXWVROYLQJEXVLQHVVSUREOHPVIRUFRPSDQLHVZKRVLPSO\ GRQ¶WKDYHWKHWLPHRUWKHUHVRXUFHVWRGHVLJQDQGPDQDJHWKHLU RZQORJLVWLFVVROXWLRQV :H¶UHSURXGRI36,¶VSDVWDQGZH¶UHH[FLWHGDERXWWKHIX WXUH:KDWEHJDQDVDEXVLQHVVEDVHGRQWUXVWUHPDLQVDEXVLQHVV EDVHGRQWUXVW2XUJRDOLVWRFRQWLQXHPHHWLQJWKHWUDQVSRUWD WLRQDQGZDUHKRXVLQJQHHGVRIRXUFXVWRPHUVH[FHHGLQJWKHLU H[SHFWDWLRQVDQGOHDGLQJWKHZD\LQVROXWLRQEDVHGVXSSO\FKDLQ ORJLVWLFV 7\NL[:V\UK0U[LYUH[PVUHS0UJ 76*!1HJRPL(NULY ,THPS!QHNULY'WZPPUSJVT >LIZP[L!^^^WZPPU[SJVT -DFNLH$JQHUGLUHFWRUKRXVHKROG JRRGVDW3XJHW6RXQG,QWHUQDWLRQDOLV ,$0¶V&RUH0HPEHUV5HSUHVHQWDWLYH !'%!'"!&&"'"!"")%&) %"''"!%"% &&!'" #%"'',"(!&' "!'%,"&&&%&(' "!%(#',"%"'%'% !-!! !&")!,*!"!('!(&!&&*' !"'% % !%& %#%'#'"!&','" !'!! + ( #%"% ")%! *'!!!(%!*"(&' #% ,%,"(!'"%!"''"'")% &'*** ")%&"%%##' '""*!"(!&!!##'"! !''"!%$(% '&'"")%#%'!'"#%'#!'"'"!'&' ")%&"%%%#' ;OL.VZZLSPU.YV\W!4V]PUNPUH+PMMLYLU[+PYLJ[PVU %\0DUF6PHW * OREDOL]DWLRQWKH,QWHUQHWWKHILQDQFLDOFULVLV²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` 7KH*RVVHOLQ*URXSVWDUWHGLQDV9LYHWDORFDOPRYLQJ FRPSDQ\LQ'HXUQH%HOJLXPJURZLQJVWHDGLO\DQGFKDQJLQJLWV QDPHWR9LYHW*RVVHOLQLQ,QUHFRJQL]LQJLWVH[SDQG LQJPDUNHWVDQGVHUYLFHVWKHFRPSDQ\UHRUJDQL]HGDV*RVVHOLQ :RUOG:LGH0RYLQJ7KHQH[WGHFDGHVDZ*RVVHOLQ¶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¶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¶VJRRGFRQQHFWLRQVZLWKLQ (XURSH)UHLJKWIRUZDUGLQJE\URDGWKURXJKRXW(XURSHLV SURYLGHGE\)2&867UDQVSRUW6HUYLFHV2WKHUVKLSPHQWVEH WZHHQZRUOGZLGHGHVWLQDWLRQVDUHFRRUGLQDWHGE\*RVVHOLQ¶V $QWZHUS5DSLG7UDQVLWWHDPZKRVHOHFWWKHPRVWHIILFLHQW WUDQVSRUWPRGH 3DFNLQJER[HVDQGFUDWHV*RVVHOLQVSHFLILHVDQGXVHVLWV RZQSURIHVVLRQDOSDFNLQJPDWHULDOVWKURXJKRXWLWVRSHUD WLRQVDQGVXSSOLHVDUHVHQWHYHQWR&HQWUDO$VLDIURPWKH %HOJLDQKHDGTXDUWHUV*RVVHOLQ([SRUW3DFNHUVPDQXIDFWXUHV ZRRGHQER[HVDQGFUDWHVIRUDZLGHYDULHW\RIQHHGVDQG VSHFLILFDWLRQVLQFOXGLQJWKRVHRIWKH86'HSDUWPHQWVRI 6WDWHDQG'HIHQVH*RVVHOLQ¶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¶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`.\Y\Z ;LSS;OL7VY[HSYLHKLYZHIV\[`V\Y J\[[PUNLKNL[LJOUVSVN`WYVK\J[Z HUK^O`^LULLK[OLT >YP[L`V\YV^UJVTWHU`WYVÄSL VYSL[\ZKVP[MVY`V\:LUK `V\YHY[PJSLVYPUMVYTH[PVU[V 1HUL[:LLS`'0(4V]LYZVYNHUK QV`JLKL_[LY'JVTJHZ[UL[ ¸(K]HUJLZPU;LJOUVSVN`¹ ·4H`1\ULPU;OL7VY[HS ,17(51$7,21$/ $662&,$7,212)029(56 7+ $118$/ 0((7,1* 6&+('8/( $7$*/$1&( ([KLELWRUVHWXSEHJLQVRQ7XHVGD\IURPSPSP :HGQHVGD\ 6HSWHPEHU 7KXUVGD\ 6HSWHPEHU )ULGD\ 2FWREHU 6DWXUGD\ 2FWREHU DP±SP 5HJLVWUDWLRQ2SHQ DP±SP 5HJLVWUDWLRQ2SHQ DP±SP 5HJLVWUDWLRQ2SHQ DP±1RRQ 5HJLVWUDWLRQ2SHQ SP±SP 1HWZRUN&HQWUDODQG ([KLELWV2SHQ DP±SP 1HWZRUN&HQWUDODQG ([KLELWV2SHQ DP±SP 1HWZRUN&HQWUDODQG ([KLELWV2SHQ DP±1RRQ 1HWZRUN&HQWUDODQG ([KLELWV2SHQ DP±DP $):6FKRODUVKLS %RDUG%UHDNIDVW DP±DP %UHDNIDVWZLWK([KLELWRUV DP±DP ([KLELWRU6HW±XS&RQWLQXHG DP±DP .12:/('*(/$% ([KLELWRUVDQGWKH$UWRI%RRWK6DOHV DP²DP %UHDNIDVW .H\QRWH7HUU\+HDG +DOORI+RQRU,QGXFWLRQV DP±DP &00%<30%([HF&RPPLWWHH %UHDNIDVW0HHWLQJ DP±DP +DOORI+RQRU6HOHFWLRQ &RPPLWWHH%XVLQHVV6HVVLRQ DP±SP ([HFXWLYH&RPPLWWHH0HHWLQJ DP±DP .12:/('*(/$% 86%DQN)UHLJKW3D\PHQW )RUPHUO\3RZHU7UDFN &KHU\O*DUFLD SP±SP ([HFXWLYH&RPPLWWHH/XQFKHRQ SP±SP .12:/('*(/$% $WWHQGHHV*HWWKH0RVW2XWRI<RXU &RQIHUHQFH7LPH *HRUJLD$QJHOO SP±SP ([KLELWRUV¶&RFNWDLO 5HFHSWLRQ DP±SP ,6$%RDUG0HHWLQJ DQG/XQFKHRQ SP±SP .12:/('*(/$% %XVLQHVV9DOXDWLRQ ([LW3ODQ6DOHRI%XVLQHVV $OOHQ2SSHQKHLPHU SP±SP <3±%RDUG0HHWLQJ DQG/XQFKHRQ SP±SP 1HZ0HPEHUV)LUVW7LPH$WWHQGHHV 6SHFLDO*XHVWV5HFHSWLRQ SP±SP &RUH0HPEHUVKLS0HHWLQJ SUHYLRXVO\$VVRFLDWH0HPEHUV SP±SP <3±:HOFRPH5HFHSWLRQ SP±SP <3±0HPEHUVKLS0HHWLQJ 7RSLF:D\VWR&KDQJH%RRPHUV¶ 0LQGV$ERXW<RX 4XLQQ0F'RQDOG SP±SP 2SHQLQJ5HFHSWLRQ SP²SP $):6FKRODUVKLS $IWHU+RXUV3DUW\ $GGLWLRQDO7LFNHW5HTXLUHG )RUH[KLELWLQJFRPSDQLHVRQO\ 6FKHGXOHLVWHQWDWLYHDQGVXEMHFWWRFKDQJH )UHH(YHQLQJ 7KHUHZLOOEHQRVFKHGXOHG ,$0HYHQWVWKLVHYHQLQJ DP±DP %UHDNIDVW DP±1RRQ *RYHUQLQJ0HPEHU0HHWLQJ SUHYLRXVO\$FWLYH0HPEHUV DP±DP .12:/('*(/$% ,$03DQHO3URJUDPV6HUYLFHV %ULDQ/LPSHURSXORV-DQHW6HHO\ ,$06WDII DP±DP .12:/('*(/$% 5HFRUG6WRUDJH <RXU1HZ%XVLQHVV" -LP6SLQQH\ DP±DP &ODLPV:RUNVKRS 1RRQ±SP ([KLELW7HDUGRZQ DP±DP .12:/('*(/$% 7DSSLQJ7DOHQWV6NLOOV RI<RXQJ3URIHVVLRQDOV 4XLQQ0F'RQDOG SP±SP 6SHFLDO3URJUDP7%' DP±1RRQ ,6$0HPEHUVKLS0HHWLQJ SP±SP &ORVLQJ'LQQHUDQG(QWHUWDLQPHQW 1RRQ±SP %XIIHW/XQFKLQ([KLELW+DOO SP±SP 3RVW'LQQHU (QWHUWDLQPHQW'DQFLQJ SP±SP .12:/('*(/$% 7%' SP±SP &ORVLQJ5HFHSWLRQ SP±SP 0LOLWDU\DQG*RYHUQPHQW $IIDLUV:RUNVKRS SP±SP <3±6RFLDO0L[HU <30HPEHUV2QO\ )UHH(YHQLQJ 7KHUHZLOOEHQRVFKHGXOHG ,$0HYHQWVWKLVHYHQLQJ $OO.QRZOHGJH/DEVHVVLRQVDUH WHQWDWLYHO\VFKHGXOHGDQGVXEMHFW WRFKDQJH ,$06FKHGXOHBUHYDVRI 0(40Z¸9HPZPUN[OL:[HRLZ¹VU(UU\HS4LL[PUN-\U¯HUK-\UKYHPZPUN : H]L[OLKH[LMVY*HZPUV5PNO[H[[OL0(4(UU\HS-\UK-YPLUK9HPZLYILULÄ[[PUN[OL(SHU->VOSZ[L[[LY :JOVSHYZOPW-\UK1VPU\ZMVY[OPZM\UHUKTLTVYHISLNHSHL]LUPUNMVYHNYLH[JH\ZL -VSSV^PUN[OL6WLUPUN9LJLW[PVU>LKULZKH`:LW[LTILY !WT¶!WT (KKP[PVUHS[PJRL[YLX\PYLK ;OLY\SLZHYLLHZ`HUK[VWSH`PZSLNHS>L»YLUV[¸IS\MÄUN¹ @V\YKVUH[LKLU[Y`MLLPUJS\KLZJOPWZMVY[OLNHTPUN[HISLZ·[Y``V\YS\JR^P[O7VRLY)SHJRQHJR 9V\SL[[LHUK7HP.V^(UKPM`V\»YLUV[H¸OPNOYVSSLY¹KVU»[^VYY`"L_WLY[KLHSLYZ^PSSILOHWW`[VL_WSHPU [OLNHTLZ[V`V\ 0[»ZUV[¸^PUULY[HRLZHSS¹([[OLLUKVM[OLL]LUPUN[YHKL`V\YJOPWZMVYYHMÅL[PJRL[Z[VLU[LYHKYH^PUN MVY]HS\HISLWYPaLZ)V[O`V\HUK[OL(->:JOVSHYZOPW-\UK^PSS¸OP[[OLQHJRWV[¹VU*HZPUV5PNO[ >H[JO`V\YLTHPSMVYTVYLKL[HPSZVU*HZPUV5PNO[HUKZ[HY[¸JHYKZOHYWLUPUN¹`V\YZRPSSZ >PSS[OL[O(UU\HS4LL[PUNPU:HU+PLNV:L[H5L^([[LUKHUJL9LJVYK& 0(4(UU\HS4LL[PUNZ!(@LHY)`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`-\U9\U >OLU! >OLYL! *VZ[! ;\LZKH`:LW[LTILY WTZ[HY[[PTLYHJLKH`YLNPZ[YH[PVUVWLUZH[ HTPU[OLSVII`VM[OL 4HUJOLZ[LY.YHUK/`H[[ 7HY[PJPWHU[ZHYLHZRLK[VTLL[H[!WTILOPUK[OL/`H[[VU[OLIVHYK^HSR UL_[[V:HSS`»ZYLZ[H\YHU[ <:WLYWLYZVU -VYTVYLPUMVYTH[PVU!=PZP[^^^ZHU[HMLYLSVJVTVYLTHPS1/:*OHYP[`9\U'ZHU[HMLJVTOR (SSWYVJLLKZ^PSSILULÄ[1VOUZ/VWRPUZ4LKPJHS0U[LYUH[PVUHS :HU[H-LPZWYV\K[VIL[OLMV\UKPUNTLTILYVM[OL1VOUZ/VWRPUZ9LZLHYJO-\UK^OPJOPZ MVJ\ZLKVUYLZLHYJOHUK[YLH[TLU[VMIYLHZ[JHUJLY ;OLYLZLHYJOKVULH[1VOUZ/VWRPUZ4LKPJPUL0U[LYUH[PVUHSOVSKZ[OLWYVTPZLVM\UPX\L HK]HUJLZPU[OL[YLH[TLU[VMIYLHZ[JHUJLY:HU[H-LOHZJVU[YPI\[LK<:MVYL]LY`TV]LP[ OHZOHUKSLK[V^HYK[OLÄNO[HNHPUZ[IYLHZ[JHUJLYZPUJL[OLM\UK»ZPUJLW[PVUPU ;OHURZ[V`V\YVUNVPUNZ\WWVY[LHYSPLYPUKVUH[PVUZ[VWWLK<: SECURITY AND RISK MANAGEMENT 5L^9LN\SH[PVUZ*H\ZPUN(U_PL[`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²HVWLPDWHVDUHWKDWDVPXFKDV SHUFHQWRIDUWVKLSSHGDURXQGWKHZRUOGWUDYHOVWKLVZD\²ZLOO KDYHWRJRWKURXJKDLUOLQHVHFXULW\VFUHHQLQJ 6LQFHODVW)HEUXDU\DLUOLQHVKDYHEHHQUHTXLUHGWRVFUHHQ KDOIRIWKHLUSDVVHQJHUDLUFDUJRDQGVLQFHODWHDOOFDUJR RQQDUURZERGLHGMHWV%XWVKLSSHUVVD\WKDWVHYHUDOFDWHJRULHV RIFDUJRLQFOXGLQJDUWSKDUPDFHXWLFDOVKLJKWHFKHTXLSPHQW DQGSHULVKDEOHIRRGDUHDOPRVWDOZD\VSDVVHGRYHUZKHQDLUOLQHV KDYHGLVFUHWLRQEHFDXVHRIWKHGLIILFXOW\RIVHDUFKLQJVXFKFUDWHV VKRXOGDQH[SORVLYHVUHVLGXHWHVWRUERPEVQLIILQJGRJJLYHUHD VRQWRGRVR 6LQFHQHZVRIWKHUHTXLUHPHQWEHJDQWRVSUHDGODVW\HDU PDQ\ODUJHPXVHXPVOLNHWKH0XVHXPRI0RGHUQ$UWWKH 0HWURSROLWDQ0XVHXPRI$UWWKH-3DXO*HWW\LQ/RV$QJHOHV DQGWKH1DWLRQDO*DOOHU\LQ:DVKLQJWRQKDYHHQUROOHGLQDIHGHUDO SURJUDPWKDWDOORZVWKHPWRFUHDWHVHFXUHVFUHHQLQJIDFLOLWLHV ZLWKLQWKHLURZQEXLOGLQJV,QWKHVHURRPVWKHLQVWLWXWLRQVFDQ LQVSHFWDUWFUDWHLWDQGPDUNLWZLWKVSHFLDOVHDOVORFNVDQGWDSH WKDWZLOOPHDQWKDWLWVFKDQFHVRIEHLQJUHVFUHHQHGE\DLUOLQHSHU VRQQHODUHPLQXVFXOH0DQ\ODUJHDUWVKLSSLQJFRPSDQLHVKDYH DOVREHFRPHFHUWLILHGWRVFUHHQDQGVHFXUHO\SDFNDUWWKHPVHOYHV $UWVKLSSLQJH[SHUWVVD\WKDWWKHEXUGHQRIWKHQHZUHJXOD WLRQVZLOOIDOOPRUHKHDYLO\RQJDOOHULHVDQGSULYDWHGHDOHUVWKDQ RQPXVHXPVZKLFKW\SLFDOO\SODQH[KLELWLRQV\HDUVLQDGYDQFH DQGFDQDUUDQJHIRUVKLSSLQJWKDWDYRLGVSDVVHQJHUSODQHV*DO OHULHVRQWKHRWKHUKDQGRIWHQSXWWRJHWKHUVKRZVPXFKPRUH TXLFNO\DQGVWULNHODVWPLQXWHGHDOVIRUEX\LQJDQGVHOOLQJDUWWKDW ).4%2.!4)/.!, 3()00%23 !33/#)!4)/. WWWISASHIPORG 3ERVING THE INTERNATIONAL HOUSEHOLD GOODS COMMUNITY THROUGH NEGOTIATED FREIGHT RATES FOR ALL MAJOR TRADE LANES &OR 53 -ILITARY ((' TO AND FROM THE 5+ AND .ORTH %UROPE .ORTH !TLANTIC 3ERVICES 0ATRICK 6ERCAUTEREN 0ATRICK6 NORTHATLANTICSERVICESCOM ANDOR 0ASHA )NTERNATIONAL "ARBARA ,OCKIE"ROWN "ARBARA?LOCKIEBROWN 0ASHANETCOM 53 -ILITARY TO AND FROM THE 0ACIlC 2IM !SIA 0ASHA )NTERNATIONAL "ARBARA ,OCKIE"ROWN "ARBARA?LOCKIEBROWN 0ASHANETCOM 53! /UTBOUND #OMMERCIAL ((' &#, ,#, -ALLORY !LEXANDER )NTERNATIONAL ,OGISTICS 4HERESA 7ALKER THERESAW MALLORYGROUPCOM 7HEN CONTACTING VENDORS PLEASE IDENTIFY YOURSELF AS AN )3! MEMBER )3! \ 2ICHMOND (IGHWAY 3UITE !LEXANDRIA 6! \ TEL \ FAX \ URL WWWISASHIPORG FDQPHDQWKDWDSLHFHLQ1HZ<RUNQHHGV WREHLQ=XULFKRU%HLMLQJWKHQH[WGD\ ³$QGVR\RXKDYHD0LQJYDVHLQVSH FLDOIRDPDQGDQDLUOLQHVXEFRQWUDFWRUKDV WRWDNHWKDWRXWDQGWKHQUHSDFNLWEHFDXVH KHJRWDIDOVHSRVLWLYHRQDQH[SORVLYH VZDEWHVW´VDLG0DU\&3RQWLOORDQDV VLVWDQWYLFHSUHVLGHQWRIWKH'H:LWW6WHUQ *URXSDQLQVXUDQFHEURNHUDJHWKDWGHDOV H[WHQVLYHO\ZLWKILQHDUWFOLHQWV³7KDW¶V VRPHWKLQJ\RXGRQ¶WZDQWWRKDSSHQ´ ,Q-DQXDU\'HZLWW6WHUQFRQGXFWHGD VHPLQDULQ1HZ<RUNIRUGHDOHUVWRKHOS VSUHDGWKHZRUGDERXWWKHQHZUXOHV -DQ(QGOLFKRI&KHLP5HDGWKH &KHOVHDJDOOHU\ZKLFKVHQGVDERXWKDOI RILWVDUWVKLSPHQWVDVFRPPHUFLDOSDV VHQJHUSODQHFDUJRVDLGWKDW³WKHEHDXW\ DQGKRUURURIDJDOOHU\VLWXDWLRQLVMXVWKRZ TXLFNO\DQGODVWPLQXWHLWFDQUHDFWDQG FKDQJHFRXUVH´ %XWKHDQGRWKHUVLQWKHJDOOHU\ZRUOG VDLGWKDWHYHQODUJHJDOOHULHVZHUHXQOLNHO\ WRVHWXSWKHLURZQVHFXUHIDFLOLWLHVXQGHU WKHIHGHUDOVFUHHQLQJSURJUDPEHFDXVHRI WKHUHTXLUHPHQWVRIVSDFHDQGUHVRXUFHV DQGVRZLOOUHO\RQDUWVKLSSLQJFRPSDQLHV WKDWKDYHEHFRPHFHUWLILHGVFUHHQHUV7KLV ZLOODGGWLPHDQGFRVWWRVKLSSLQJDUW VRPHRIZKLFKLVQRZFUDWHGLQKRXVHDQG VRPHWLPHVLQFROOHFWRUV¶RZQKRXVHV $QGUHD:RRGZKRUXQVDQDUWPDQ DJHPHQWFRPSDQ\EDVHGLQ1HZ<RUN RQFHWUDYHOHGDVDFRXULHURIDUWZRUNVRQ SDVVHQJHUSODQHV,WZDVFRPPRQIRUKHU WRZDWFKDZRUNEHFUDWHGULJKWRIIRID FROOHFWRU¶VZDOOWRJHWLQWKHYDQZLWKLW DQGDFFRPSDQ\LWVWUDLJKWWRWKHDLUSRUW ZKHUHEHIRUHVKHFRXOGVWDQGRQWKH WDUPDFDQGVHHLWORDGHGLQWRDMHW¶VKROG ³,ZDVWKHUHIURPQDLOWRQDLORQERWK VLGHVRIWKHWULS´VKHVDLG³7KDW¶VQRWJR LQJWRKDSSHQDQ\PRUH´ -RKQ0F&ROOXPLQWHUQDWLRQDOVKLS SLQJPDQDJHUIRU6WHELFK5LGGHU,QWHUQD WLRQDODQDUWVKLSSLQJFRPSDQ\WKDWKDV EHHQFHUWLILHGE\WKHIHGHUDOJRYHUQPHQW WRVFUHHQFDUJRVDLGDQRWKHUFRPSOLFDWLRQ WKHDUWZRUOGZRXOGHQFRXQWHULQYROYHG WKHIUHTXHQWXVHRIDQRQ\PRXVSDUWLHVLQ WUDQVDFWLRQV%HFDXVHWKHIHGHUDOJRYHUQ PHQWUHTXLUHVDLUOLQHVWRHQVXUHWKDWFDUJR FRPHVRQO\IURPNQRZQVKLSSHUV²WKRVH ZKRKDYHILOOHGRXWSDSHUZRUNRUEHHQ LGHQWLILHGLQRWKHUZD\VDVEHLQJOHJLWL PDWH²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³7KLVLVJRYHUQPHQWDQGDLUOLQHZRUN HUVEDVLFDOO\WU\LQJWRILJXUHRXWKRZWR GHDOZLWKWKHKLJKHQGDUWZRUOG´3RQWLOOR VDLG³,W¶VQRWVRPHWKLQJWKDWHLWKHUSDUW\ ZDQWVWRWKLQNDERXWEXWVRRQWKHUH¶VJR LQJWREHQRFKRLFH´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±WKH IROORZLQJGDWDIRU'36ZHUHSURYLGHG '2'PHPEHUVFRXQVHOHG 6KLSPHQWVSURFHVVHGVKLSPHQWV 6KLSPHQWVGHOLYHUHGVKLSPHQWV 6HUYLFHV¶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³,QWHULP ,,´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³SHUIRUPDQFH´LVVXHV$FFHVVWR'36ZDVDWWLPHV LQWHUPLWWHQWRUQRQH[LVWHQW7KLVKDVEHHQSUREOHPDWLFIRUERWK 1746//.:OHZILLU^VYRPUNOHYK [VYLZVS]LWLYMVYTHUJLHUKHJJLZZWYVISLTZ HUKL]LUOHK[VZO\[KV^U [OLZ`Z[LTHU\TILYVM[PTLZ PUVYKLY[VYLJ[PM`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`TLU[ , I\RXUFRPSDQ\KDVEHHQXVLQJ3RZHU7UDFNWRSURFHVVKRXVH KROGJRRGVWUDQVSRUWDWLRQSD\PHQWV\RX¶YHQRGRXEWQRWLFHGD FKDQJHUHFHQWO\ 86%DQNLVUHEUDQGLQJLWVEXVLQHVVWREXVLQHVV%%FUHGLW DQGSD\PHQWVHUYLFHV$VDUHVXOWZKDWXVHGWREH3RZHU7UDFN )UHLJKW3D\PHQWLVQRZ86%DQN)UHLJKW3D\PHQWDVHUYLFHRI 86%DQN7UDQVSRUWDWLRQ6ROXWLRQV ³:HVDZDQHHGWRSXWDOORXURIIHULQJVXQGHUWKHVDPHEUDQG LGHQWLW\´VDLG-HII5DQNLQVHQLRUYLFHSUHVLGHQWIRUVDOHVDQG PDUNHWLQJDW86%DQN&RUSRUDWH3D\PHQW6\VWHPV³7KHQDPH LVQHZEXWRXUSURGXFWVVHUYLFHVDQGFRQWDFWVVWD\WKHVDPH 2YHUWLPHKRZHYHUWKHQHZVWUXFWXUHZLOOKHOSWRPDNHRXURI IHULQJVHYHQEHWWHU´ 6\QFDGDLVDQRWKHUQHZQDPH\RX¶YHEHHQKHDULQJDQG\RX PD\ZRQGHUKRZLWILWVLQ6\QFDGDDMRLQWYHQWXUHRI86 %DQNDQG9,6$SURYLGHVWKHWHFKQRORJ\QHWZRUNRYHUZKLFK 86%DQNGHOLYHUVLWVSD\PHQWVHUYLFHVDQGSURFHVVHV%%SD\ PHQWV,QRWKHUZRUGV86%DQNFRQWLQXHVWRSURYLGHILQDQFLQJ SD\PHQWVDQGRWKHUVHUYLFHV6\QFDGDLVWKHQHWZRUNXVHGWR GHOLYHUWKHP +RZGRHVWKLVDIIHFW\RX",I\RX¶YHEHHQXVLQJ3RZHU7UDFN \RXUHPDLQDFXVWRPHURI86%DQN²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`V\Y4LTILYZOPW+PYLJ[VY`SPZ[PUNH[ HU`[PTLI`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¶VORQJHVWVOXPS 0DUNHWVWKDWZHUHKLWILUVWE\UHFHVVLRQVXFKDVWUDGHVWR EXWWKHUHFRXOGEHDUHWXUQWR³PDMRU´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¶VWKLUGODUJHVWFRQWDLQHUVKLSSLQJJURXSUHFHQWO\PHW VROXWLRQVPRUHZLGHO\HWFWRUHVSRQGDVHIIHFWLYHO\DVSRV XQGHUWKHFKDLUPDQVKLSRI0-DFTXHV56DDGpWRUHYLHZWKH VLEOHWRWKHLUHPHUJLQJH[SHFWDWLRQV ILQDQFLDOVWDWHPHQWVIRUWKH\HDUHQGHG'HFHPEHU ,QDGGLWLRQZLOOEHVKDSHGE\WKHGHOLYHU\RIWKH ,QDFRQWDLQHUVKLSSLQJHQYLURQPHQWZKHUHHYHU\SOD\HUZDV JURXS¶VQHZKHDGRIILFHWKH&0$&*07RZHUZKLFKLQWKH VHYHUHO\DIIHFWHGE\WKHJOREDOFULVLV²WKHGHHSHVWWKHPDULWLPH DXWXPQZLOOFRQVROLGDWHQHDUO\0DUVHLOOHVWDIIPHPEHUV VKLSSLQJLQGXVWU\KDVHYHUH[SHULHQFHG²WKHJURXS¶VFRQVROLGDWHG FXUUHQWO\EDVHGDWVHYHQORFDWLRQV UHYHQXHGHFOLQHGE\SHUFHQWWRELOOLRQ¼ELOOLRQLQ $FFRUGLQJWR5RGROSKH6DDGpH[HFXWLYHRIILFHURIWKH&0$ GUDJJHGGRZQE\DVKDUSUHGXFWLRQLQIUHLJKWUDWHVDQGYRO &*0*URXS³7KHILUVWTXDUWHUUHVXOWVZKLFKODUJHO\H[ XPHV2YHUDOOPLOOLRQWZHQW\IRRWHTXLYDOHQWXQLWV7(8V FHHGHGH[SHFWDWLRQVGHPRQVWUDWHWKHJURXS¶VDELOLW\WRUHERXQG ZHUHFDUULHGE\WKHJURXSGXULQJWKH\HDUDSHUFHQWGHFOLQHWKDW 6LQFHODWH&0$&*0KDVEHHQUHVWUXFWXULQJLWVEDODQFH QHYHUWKHOHVVRXWSHUIRUPHGWKHSHUFHQWGURSLQZRUOGFRQWDLQHU VKHHWDQGRSHQLQJLWVFDSLWDOWRQHZLQYHVWRUV:HKDYHUHFHLYHG WUDIILFDFFRUGLQJWR'UHZU\ VHYHUDORIIHUVIURPLQGXVWULDODQGILQDQFLDOLQYHVWRUVDQGDUHFRP ,QUHVSRQVHWKHJURXSLPSOHPHQWHGDGUDVWLFFRVWUHGXFWLRQ PLWWHGWRILQDOL]LQJQHJRWLDWLRQVEHIRUHWKHHQGRIVXPPHU´ SODQWKDWGHOLYHUHGQHDUO\86'PLOOLRQLQVDYLQJVZLWKRXW 3KLOLSSH6RXOLpFKLHIH[HFXWLYHRIILFHURIWKH&0$&*0 VDFULILFLQJLWVSRWHQWLDOIRUIXWXUHGHYHORSPHQW *URXSGHFODUHG³,QDPDUNHWWKDWKDVUHWXUQHGWRJURZWKLQ 7KH\HDUZDVRQHRIFRQWUDVWZKHQWKHXSWXUQLQ UHFHQWPRQWKV&0$&*0LQWHQGVWRVWUHQJWKHQLWVLQGXVWU\ YROXPHVRQPRVWRIWKHWUDGHVEHJLQQLQJLQ-XO\DQGWKHJURXS¶V OHDGHUVKLSE\SXUVXLQJWZRSULRULW\REMHFWLYHVWRFRQWLQXHDGDSW IRFXVRQIUHLJKWUDWHVUHVWRUDWLRQDQGFRVWUHGXFWLRQUHVXOWHGLQD LQJLWVIOHHWDQGWRFRPSOHWHWKHQHFHVVDU\VWUHQJWKHQLQJRILWV UHWXUQWRSRVLWLYH(%,7'$HDUQLQJVEHIRUHLQWHUHVWWD[HVGHSUH ILQDQFLDOVWUXFWXUH7RGD\*URXS0DQDJHPHQWWHDPLVZRUNLQJ FLDWLRQDQGDPRUWL]DWLRQLQWKHIRXUWKTXDUWHUDIWHUHLJKWPRQWKV IXOOWLPHWRPHHWWKHVHREMHFWLYHVDQG,DPYHU\FRQILGHQWLQWKH RIGHHSORVVHV JURXS¶VDELOLW\WRPDNHWKHPDUHDOLW\LQFORVHFRRSHUDWLRQZLWK $VDUHVXOW(%,7'$OLPLWHGLWVGHFOLQHWRDORVVRI86' LWVSDUWQHUV´ PLOOLRQRYHUWKH\HDUDQGWKHQHWORVVIURPPDULWLPHVKLSSLQJRS 6285&('UHZU\DQG(XURSHDQ/LQHU$IIDLUV$VVRFLDWLRQ HUDWLRQVVWRRGDW86'PLOOLRQ7KHFRQVROLGDWHGQHWORVVIRU *VU[HPULY:OPW6YKLYZ*V\SK9LZ[HY[ 2 (M[LYH@LHY:OHWLKI`.SVIHS*YPZPZ *4(*.49L[\YUZ[V7YVÄ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`V\HMMVYKUV[[VQVPU& 7YV[LJ[`V\YI\ZPULZZMYVTTVU L[HY`SVZZLZMVYHVUL[PTL MLL+V^USVHK977.\PKLSPULZ HUK(WWSPJH[PVUZH[ ^^^PHTV]LYZVYNYWWO[TS EXECUTIVE SUITE 3H[LZ[*HY[\Z:\Y]L`9L]LHSZ5L^ .SVIHS9LSVJH[PVU;YLUKZ & DUWXVDVXEVLGLDU\RI5HDORJ\&RUSRUDWLRQDJOREDOSURYLGHU RIUHDOHVWDWHDQGUHORFDWLRQVHUYLFHVMXVWUHOHDVHGLWV *OREDO3ROLF\3UDFWLFHV6XUYH\ .DOHLGRVFRSH&DUWXV¶VQHZEORJIRUFRUSRUDWHUHORFDWLRQ DQGKXPDQUHVRXUFHVQRWHV³*OREDOFRPSDQLHVDUHPRYLQJWKHLU HPSOR\HHVWRYDVWO\GLIIHUHQWORFDWLRQVDVWKH\WDNHDGYDQWDJHRI QHZPDUNHWRSSRUWXQLWLHVDQGWKH\DUHXVLQJDQH[SDQGHGYDULHW\ RISURJUDPVDQGSROLF\DSSURDFKHVWRGRVR´ 7KLVODWHVWJOREDOUHORFDWLRQUHSRUW1DYLJDWLQJD&KDOOHQJ LQJ/DQGVFDSHVXJJHVWVWKDWFRPSDQLHV¶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³JRLQJORFDO´ZLWKWKHLUDVVLJQPHQW DSSURDFKHV,QLQFUHDVLQJQXPEHUVHPSOR\HHVZKRWDNH MREVLQRWKHUSDUWVRIWKHZRUOGPD\EHGRLQJVRZLWKWKH XQGHUVWDQGLQJWKDWWKHMREVZLOOEHSHUPDQHQWDQGZLOOKDYH FRPSHQVDWLRQDQGEHQHILWVFDOHVWKDWDUHPRUHUHIOHFWLYHRI WKHQHZORFDWLRQWKDQWKHLUKRPHEDVH%RWKORFDOL]DWLRQDQG (YLJLU[Z[\K`Z\NNLZ[Z[OH[ TVIPSP[`]VS\TLZHYLILNPUUPUN[V YLJV]LYI\[ZL]LYHSUL^[YLUKZ HYLLTLYNPUN SHUPDQHQWWUDQVIHUVWKHWZRW\SHVWKDWUHIOHFWWKLVDSSURDFK DUHDQWLFLSDWHGWRLQFUHDVHRYHUWKHQH[WWZR\HDUVE\PRUH WKDQSHUFHQWRIUHVSRQGHQWV 1HZHPHUJLQJPDUNHWV0XOWLQDWLRQDOFRPSDQLHVDUHPRY LQJDVVLJQHHVWRPDQ\PRUHFRXQWULHVWKDQLQWKHSDVW² DPRQJWKHPQHZDQGFKDOOHQJLQJHPHUJLQJPDUNHWORFD WLRQVVXFKDV0H[LFR7XUNH\6DXGL$UDELDDQG9LHWQDP $OWKRXJKPDQ\RIWKHVHQHZGHVWLQDWLRQVDUHXQSUHSDUHGWR DFFRPPRGDWHDVVLJQHHVWKHODUJHVWFRPSDQLHVVXUYH\HGDUH ZLOOLQJWRKHDGLQZKDWHYHUXQLTXHGLUHFWLRQVDUHQHFHVVDU\ WRWDNHDGYDQWDJHRIRSSRUWXQLWLHVIRUJOREDOH[SDQVLRQ (GLWRU¶VQRWH7RREWDLQDFRS\RIWKH*OREDO3ROLF\ 3UDFWLFHV6XUYH\1DYLJDWLQJD&KDOOHQJLQJ/DQGVFDSH HPDLO&DUWXV&RPPXQLFDWLRQV#FDUWXVFRP7\SH³ *336XUYH\´RQWKHVXEMHFWOLQH FDQWLPSDFWRQEDE\ERRPHUUHWLUHPHQWVDQGRQHPSOR\PHQWDQG DGYDQFHPHQWRSSRUWXQLWLHVIRUVXEVHTXHQWJHQHUDWLRQV3RWHQWLDO UHWLUHHVLQWKLVYRODWLOHHFRQRP\PD\KROGIDVWWRWKHMREVWKH\ %\&KXFN%ROGXFDQG%RE5HLOO\ FXUUHQWO\KDYHRUVHHNQHZIXOOWLPHRUSDUWWLPHHPSOR\PHQW WRFRPSHQVDWHIRUWKHUHDOGHFOLQHRIWKHLUUHWLUHPHQWIXQGV$W VWKHEDE\ERRPHUJHQHUDWLRQFRQWLQXHVWROHDYHWKHZRUN WKHVDPHWLPHFRPSDQLHVDQGJRYHUQPHQWHQWLWLHVDUHRIIHULQJ IRUFHERWKSXEOLFDQGSULYDWHVHFWRURUJDQL]DWLRQVKDYH HDUO\UHWLUHPHQWRUDWWUDFWLYHEX\RXWRSSRUWXQLWLHVWRVRPHRI WKHSRWHQWLDOWRH[SHULHQFHDQLQWHOOHFWXDOFDSLWDOORVVRIXQ WKHLUPRVWH[SHULHQFHGDQGNQRZOHGJHDEOHZRUNHUVLQWKHKRSH SUHFHGHQWHGSURSRUWLRQV7KHPRGHUQEXVLQHVVPRGHORIDOHDQ RIUHGXFLQJFRVWV<RXQJHUORZHUSDLGZRUNHUVPD\WKHQILOO FRPSUHVVHGZRUNIRUFHDORQJZLWKWKHFKDOOHQJHVRIDJOREDO MREVZKHUHPHQWRULQJDQGWUDLQLQJEHFRPHFULWLFDO,WLVFOHDUWKDW HFRQRPLFGRZQWXUQKDYHIRUFHGPDQ\RUJDQL]DWLRQVLQWRD FKDQJHVLQWKHHFRQRP\KDYHDGLUHFWLPSDFWRQDQRUJDQL]DWLRQ¶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²DORQJZLWKWKHKLVWRULFDONQRZO ZZZNHOOHQFRPSDQ\FRPPHHWLQJBPDQDJHPHQWB HGJH²ZLWKRXWDWUDLQHGDQGPHQWRUHGHPSOR\HHUHDG\WRILOOWKH KLULQJBIRUBWKHBDVVRFLDWLRQKWPO JDS7KHVDPHLVWUXHLQSULYDWHVHFWRUFRPSDQLHVZKHUHNH\VNLOO VHWVDQGNQRZOHGJHUHVLGHLQLQGLYLGXDOVRUWHDPVZKRXSRQGH &KXFN%ROGXFDQG%RE5HLOO\DUHWKHIRXQGLQJSDUWQHUVRI*RY SDUWXUHWDNHDQHQWLUHEXVLQHVVHOHPHQWRIWKHRUJDQL]DWLRQZLWK 3UR$OOLDQFH//&KHDGTXDUWHUHGLQ0DU\ODQGZKRVHPLVVLRQ WKHP6RPHVSHFLDOW\YHUWLFDOPDUNHWVRUVHUYLFHVVLPSO\GLVFRQ LVWR³FRQQHFWSULYDWHLQGXVWU\WRJRYHUQPHQWVHFWRUORJLVWLFV´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pJpSURJUDPLQWKHRUJDQL]DWLRQVR WKDWNQRZOHGJHDQGH[SHULHQFHPD\EHVKDUHG(QFRXUDJH DSSODXGDQGFHOHEUDWHWKHVXFFHVVHVRIVXFKDSURJUDP &RQVLGHUZRUNLQJZLWKORFDOVFKRROVFRPPXQLW\FROOHJHV DQGXQLYHUVLWLHVWRVHHNSHRSOHIRUMREVRUVXPPHULQWHUQ SURJUDPV%HJLQSDVVLQJWKHWRUFKWRDQRWKHUJHQHUDWLRQ 0(4[O(UU\HS4LL[PUN /RRNLQWRSDUWWLPHRUVSHFLDOSURMHFWZRUNIRUUHWLUHGLQGL YLGXDOVZKRZRXOGORYHWRVKDUHWKHLUOLIHH[SHULHQFHVZLWK 4HUJOLZ[LY.YHUK/`H[[/V[LS RWKHUV7KHUHDUHPDQ\UHVRXUFHVWRLGHQWLI\UHWLUHHVLQFOXG :HU+PLNV*HSPMVYUPH LQJWKHORFDOIDLWKFRPPXQLW\VHQLRUFHQWHUVDQGSURIHV VLRQDODVVRFLDWLRQVIRUXQFRYHULQJWKLVNQRZOHGJHWUHDVXUH ([SORUHFRQVXOWLQJFRPSDQLHVZLWKDSDUWLFXODUVNLOOVHWRU :LW[LTILY ¶6J[VILY VSHFLDOW\WKDWFDQEHLQIXVHGLQWRWKHOLIHEORRGRIWKHRUJDQL ]DWLRQ 1VPUH[[LUKLLZHUKL_OPIP[VYZ 6HHNVHPLQDUVDQGRWKHUWUDLQLQJIRU\RXURUJDQL]DWLRQWKDW IRFXVRQWKHDUHDV\RXZLVKWRGHYHORSIXUWKHU MYVTJV\U[YPLZ &KHFNRXWSURIHVVLRQDOIRUXPVFKDWURRPVDQGRWKHURQOLQH QHWZRUNLQJWRILQGRXWKRZRWKHUVLQ\RXUSDUWLFXODUPDUNHW .V[V^^^0(4TLL[PUNZVYNMVYHSS`V\Y VHFWRUDUHZRUNLQJWKURXJKWKLVLVVXH (UU\HS4LL[PUNULLKZ· $SKHQRPHQRQWKDWDOVRPXVWEHFRQVLGHUHGLQDQRUJDQL]D YLNPZ[YH[PVUL_OPIP[ZWVUZVYZOPWZHSLZ WLRQ¶VVXFFHVVLRQSODQLVWKHFXUUHQWGRZQWXUQLQWKHHFRQRP\ /RVVHVLQWKHVWRFNPDUNHWDQGWKHVXEVHTXHQWUHGXFWLRQLQUHWLUH ZJOLK\SLKL[HPSZHUKTVYL PHQWLQYHVWPHQWSODQVDQGNSURJUDPVPD\KDYHDVLJQLIL )YHPU+YHPU!(3VVTPUN,WPKLTPJ $ :(=,;/,+(;, :LLRPUN6YNHUPa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²WHFKQLTXHVDQGPHWKRGVXVHGE\EXVLQHVVHV WKDWKDYHFRQVLVWHQWO\VKRZQVXSHULRUUHVXOWV²DUHRIWHQXVHGDV EHQFKPDUNVWKDWFRPSDQLHVFDQVWULYHWRDFKLHYH&XUUHQWPDUNHW VWUDWHJLHVRIWHQIRFXVRQJDWKHULQJFRPSHWLWRULQWHOOLJHQFHWREH XVHGLQIRUPXODWLQJEHVWSUDFWLFHVGHFLVLRQVDQGVXSSRUWLQJEXVL QHVVVWUDWHJLHVIRUTXDOLW\LPSURYHPHQWLQLWLDWLYHV$GGLWLRQDOO\ ORRNLQJDWEXVLQHVVVWDQGDUGVVHWE\VXFFHVVIXOFRPSDQLHVRI ZKLFKPDQ\FRXOGEH\RXUFRPSHWLWRUVPD\EHWKHPRVWORJLFDO DSSURDFKWRVHWEHQFKPDUNVWDQGDUGV 5HLQYHQWLQJRUDWOHDVWUHHQJLQHHULQJWKHZD\DFRPSDQ\ GRHVEXVLQHVVLVGLIILFXOWSDUWLFXODUO\DIWHUWKHFXOWXUHRIDFRP SDQ\LVHVWDEOLVKHGDQGSURFHVVHVDUHLPSOHPHQWHG,QRUGHUWR UHPDLQFRPSHWLWLYHDQGRQWKHFXWWLQJHGJHFRQWLQXDOFKDQJHV PD\EHQHFHVVDU\+RZHYHULPSOHPHQWLQJFKDQJHVZLWKRXWILUVW HVWDEOLVKLQJEHQFKPDUNPHDVXUHVDQGLGHQWLI\LQJLQGXVWU\EHVW SUDFWLFHVFDQUHVXOWLQDYRLGDEOHFRVWVDQGSUREOHPV5HFHLYLQJ DQKRQHVWHYDOXDWLRQRQZKRGRHVLWEHWWHULVVRPHWLPHVPRUHGLI ILFXOWWKDQFKDQJLQJWKHSURFHVVWKDWOHDGVWRLPSURYHPHQW2F FDVLRQDOO\\RXGRGLVFRYHUWKDW\RXURUJDQL]DWLRQLVWKHILUVWDQG IRUHPRVWLQDSDUWLFXODUFDWHJRU\LQWKHEHQFKPDUNLQJSURFHVV 7KHQDJDLQ\RXPD\EHIDFHGZLWKWKHIDFWVWKDWDQRWKHULQGXV WU\¶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¶V SULPDU\REMHFWLYHWKHVDOHVIXQFWLRQRIDQRUJDQL]DWLRQUHPDLQV DVDVWURQJFRPSRQHQWVXSSRUWLQJWKHHQWLUHRUJDQL]DWLRQ(YHQ WKRXJKDQRUJDQL]DWLRQ¶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³FRQQHFWSULYDWHLQGXVWU\WRJRYHUQPHQWVHFWRUORJLVWLFV´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¶WGDPDJHGRUGHIHFWLYH7KH\HVWLPDWHGWKDWWUXFNHUV ZRXOGZDVWHDERXWPLOOLRQKRXUVDQQXDOO\ILOOLQJRXWPLOOLRQ GULYHUYHKLFOHLQVSHFWLRQUHSRUWV'9,5VDERXWFKDVVLVWKDWGRQ¶W UHTXLUHDQ\UHSDLUV ³7KHDGGHGDGPLQLVWUDWLYHEXUGHQVRIWKHUHTXLUHPHQWWRILOH QRGHIHFW'9,5VFRXOGXQGHUPLQHWKHJRDORIVDIHLQWHUPRGDO HTXLSPHQW´WKHJURXSVDUJXHG³$QRGHIHFW'9,5GRHVQRWDGG LQDQ\PHDQLQJIXOZD\WRWKHVDIHW\RILQWHUPRGDOHTXLSPHQW´ 7KHJURXSV¶$SULOILOLQJDOVRVDLGDUHTXLUHPHQWWRILOHUH SRUWVZLWKQRGHIHFWV³DGGVFRVWWRLQWHUPRGDORSHUDWLRQVDGGVWR WKHWLPHVSHQWE\PRWRUFDUULHUVVXEPLWWLQJUHSRUWVDQGGUDVWLFDOO\ LQFUHDVHVWKHQXPEHURIUHSRUWVLQWHUPRGDOHTXLSPHQWSURYLGHUV PXVWSURFHVVDQGVWRUH´ 7KHILOLQJZDVPDGHDVWKHDJHQF\FRQVLGHUVKRZLWLQWHQGV WRLPSOHPHQWILQDOUXOHVWKDWFRYHULQWHUPRGDOFKDVVLVVDIHW\ ZKLFKDUHVFKHGXOHGWRWDNHHIIHFW-XQH /DWHODVW\HDU)0&6$GHOD\HGLPSOHPHQWDWLRQRIWKH ORQJDZDLWHGFKDVVLVVDIHW\UXOHVIURP'HFHPEHULVVXLQJD )HGHUDO5HJLVWHUQRWLFHRQHGD\DIWHUWKH\ZHUHVXSSRVHGWRWDNH HIIHFWRQ'HFHPEHU)0&6$VDLGWKHLPSOHPHQWDWLRQRIWKH UXOHVZKLFKKDYHEHHQXQGHUGLVFXVVLRQIRUDGHFDGHRUPRUH ZDVD³FKDOOHQJLQJWDVN´EHFDXVHWKHLQGXVWU\KDVDZLGHYDULHW\ RISURFHGXUHVIRUH[FKDQJLQJLQIRUPDWLRQ &XUWLV:KDOHQH[HFXWLYHGLUHFWRURIWKH$PHULFDQ7UXFN LQJ$VVRFLDWLRQ¶V,QWHUPRGDO0RWRU&DUULHUV&RQIHUHQFHVDLGDW WKHWLPHWKDWWKHGHOD\ZDVQHHGHGEHFDXVHZKHQWKHUXOHVWRRN HIIHFWWKHUHZDV³SXUHFRQIXVLRQ´DWIUHLJKWWHUPLQDOVFDXVHGE\ WKHODFNRIDVWDQGDUGL]HGV\VWHPIRUKDQGOLQJWKHGDPDJHLQVSHF WLRQUHSRUWVDQGRWKHUSDSHUZRUN 2&(0$HVWLPDWHVWKDWLWVRFHDQFDUULHUPHPEHUVRZQRU OHDVHFKDVVLVPRUHWKDQKDOIRIWKRVHLQQRZRSHUDWLRQ RQ86URDGV7KHOHVVRUJURXSZKLFKSURYLGHVHTXLSPHQWWR WKHRFHDQFDUULHUVRZQVFKDVVLV7KRVHWZRJURXSVDOVR DVVHUWHGWKDWUHSRUWVRIGHIHFWVFRXOGHDVLO\JHWORVWLQWKHVKHHU -4*:(LZ[PTH[LK[OH[[Y\JRLYZ^V\SK ^HZ[LHIV\[TPSSPVUOV\YZHUU\HSS` ÄSSPUNV\[TPSSPVUKYP]LY]LOPJSL PUZWLJ[PVUYLWVY[ZHIV\[JOHZZPZ[OH[ KVU»[YLX\PYLHU`YLWHPYZ YROXPHRISDSHUZRUNGHIHDWLQJWKHSXUSRVHRIWKHUHSRUWV 7UXFNHUVDQGRWKHULQWHUPRGDOJURXSVLQFOXGLQJWKHRFHDQ FDUULHUVDQGUDLOURDGVEHJDQGLVFXVVLQJFKDQJHVWRWKHUXOHVEH FDXVHGUD\DJHFDUULHUVZHUHEHLQJIRUFHGWRDVVXPHOHJDOOLDELOLW\ IRUWKHFKDVVLVWKH\ZHUHXVLQJHYHQWKRXJKWKH\GLGQ¶WRZQWKH HTXLSPHQW 7KHIHGHUDOWUDQVSRUWVSHQGLQJODZLQFOXGHGDUHTXLUH PHQWWRZULWHQHZFKDVVLVVDIHW\UXOHV)0&6$WRRNPRUHWKDQ WKUHH\HDUVWRGHYHORSWKHUXOHVZKLFKZHUHSXEOLVKHGLQ'HFHP EHUDQGZHUHVXSSRVHGWRWDNHHIIHFWRQH\HDUODWHU 7KRPDV0DOOR\DYLFHSUHVLGHQWRIWKH,QWHUPRGDO$VVRFLD WLRQRI1RUWK$PHULFDVDLGWKHJURXS³KDVQRSRVLWLRQRQWKH UHFHQW)0&6$ILOLQJE\2&(0$DQGWKH,,&/EXWUHFRJQL]HV WKDWVRPHVWDNHKROGHUVKDYHH[SUHVVHGFRQFHUQVUHJDUGLQJWKH DGPLQLVWUDWLYHDQGUHFRUGNHHSLQJEXUGHQVDVVRFLDWHGZLWKWKH SRWHQWLDOYROXPHRIUHSRUWV´ 0DOOR\DGGHG³$OOSDUWLHVDIIHFWHGE\WKHUHJXODWLRQVDUH ZRUNLQJWRZDUGVGHYHORSPHQWRIWKHPRVWHIILFLHQWDQGSURGXF WLYHSURFHGXUHVWRHQVXUHFRPSOHWHDQGHIIHFWLYHFRPSOLDQFHZLWK WKHUHJXODWLRQV´ 5(-;(:\YMHJL;YHKL;HRLZ)PN1\TW ()-5H[PVUHS/VUVYLKI`5(::;9(* 6 $ XUIDFHWUDQVSRUWDWLRQWUDGHDPRQJWKH8QLWHG6WDWHV&DQDGD DQG0H[LFRMXPSHGSHUFHQWLQ)HEUXDU\IURPD\HDU DJRWKHKLJKHVWJDLQRQUHFRUGDFFRUGLQJWRWKH'HSDUWPHQWRI 7UDQVSRUWDWLRQ%XWWKHLQFUHDVHWRELOOLRQLQWUDGHDPRQJ WKH1RUWK$PHULFDQ)UHH7UDGH$JUHHPHQWSDUWQHUVOHIWWKHLQGH[ SHUFHQWEHORZWKHOHYHOWZR\HDUVHDUOLHULQ)HEUXDU\ 7KHXSWXUQZDVWKHWKLUGVWUDLJKWIROORZLQJ'HFHPEHU¶V SHUFHQWULVH²WKHILUVW\HDURYHU\HDUJDLQVLQFH6HSWHPEHU ²DQGDSHUFHQWLPSURYHPHQWLQ-DQXDU\)HEUXDU\¶V WUDGHZDVSHUFHQWRYHU-DQXDU\DOWKRXJKPRQWKWRPRQWK FKDQJHVFDQEHDIIHFWHGE\VHDVRQDOYDULDWLRQVDQGRWKHUIDFWRUV '27¶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`Z/`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¶VWUXFNV836VDLG 6285&(7UDQVSRUW7RSLFV %))UHLJKW6\VWHP,QFZDVQDPHG1DWLRQDO/$7/&DU ULHURIWKH<HDUE\WKH1DWLRQDO6KLSSHUV6WUDWHJLF7UDQVSRU WDWLRQ&RXQFLO1$6675$& ,QDQQRXQFLQJWKHDZDUGRQ$SULO$%)6HQLRU9LFH 3UHVLGHQW²6DOHVDQG0DUNHWLQJ5R\6ODJOHDFNQRZOHGJHG³WKH $%)SURIHVVLRQDOVZKRKDYHQRWRQO\SHUVHYHUHGWKURXJKDGYHUVH PDUNHWLQJFRQGLWLRQVEXWDOVRKDYHFRQWLQXHGWRXSKROGWKHKLJK HVWVWDQGDUGVRISURIHVVLRQDODQGRSHUDWLRQDOH[FHOOHQFH´ 1$6675$&FLWHVWUDQVSRUWDWLRQSURYLGHUVRQDTXDQWLWDWLYH VFDOHLQILYHNH\DUHDVFXVWRPHUVHUYLFHRSHUDWLRQDOH[FHOOHQFH SULFLQJEXVLQHVVUHODWLRQVKLSDQGOHDGHUVKLSDQGWHFKQRORJ\ ,QIRUPDWLRQ:HHN&,2,QIR:RUOGDQG%WR%PDJD]LQHVKDYH FLWHG$%)¶VVWUDWHJLFXVHRILQIRUPDWLRQWHFKQRORJ\DVH[HPSOD U\$%)HVWDEOLVKHGLQLVWKHRQO\ILYHWLPHZLQQHURIWKH $PHULFDQ7UXFNLQJ$VVRFLDWLRQ¶V3UHVLGHQW¶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¶V GHFLVLRQZDVSURPSWHGE\3(7$¶VZHEVLWHSRVWLQJVKRZLQJ EHDJOHVEHLQJVKLSSHGE\/XIWKDQVDWRD&KDUOHV5LYHU/DERUDWR ULHV&5/WHVWLQJIDFLOLW\LQ6FRWODQG 7KH0DVVDFKXVHWWVEDVHGFRPSDQ\LVRQHRIWKHZRUOG¶V ODUJHVWVXSSOLHUVRIFOLQLFDODQGODERUDWRU\UHVHDUFKVHUYLFHVWR SKDUPDFHXWLFDODQGELRWHFKFRPSDQLHV7KHGRJVZHUHIURP 0DUVKDOO)DUPVDFRPPHUFLDOEUHHGHURIDQLPDOVIRUSHWVDQG VFLHQWLILFUHVHDUFKLQ1RUWK5RVH1HZ<RUN 1RWZLWKVWDQGLQJWKH,$7$OLYHDQLPDOVUHJXODWLRQVWKH DLUOLQHQRZVD\VLWSUHIHUVWKHVWDQGDUGVHWE\WKH&RQYHQWLRQRQ ,QWHUQDWLRQDO7UDGHLQ(QGDQJHUHG6SHFLHV&,7(6/XIWKDQVD DOVRVD\VLWGRHVQ¶WDFFHSWDQ\FDSWXUHGZLOGDQLPDOVLQFOXGLQJ ZKDOHVDSHVDQGGROSKLQV ³/XIWKDQVDKDVZDVKHGEORRGIURPLWVKDQGVE\HQGLQJWKH WUDQVSRUWRIGRJVDQGFDWVWRODERUDWRULHVZKHUHWKH\DUHVXEMHFW WRFHUWDLQVXIIHULQJDQGGHDWK´VDLG.DWK\*XLOOHUPR3(7$¶V YLFHSUHVLGHQWRIODERUDWRU\LQYHVWLJDWLRQV³1RZZHXUJH/XI WKDQVDWRH[WHQGWKDWVDPHSURWHFWLRQWRDQLPDOVRIDOOVSHFLHV ZKRVXIIHUMXVWDVPXFKDVGRJVDQGFDWVGR´ $[HO+HLWPDQQGLUHFWRURIWKHDLUOLQH¶VFRPSHWHQFHFHQWHU IRUDQLPDOVDGGHG³0DQ\FRPSDQLHVDQGSULYDWHLQGLYLGXDOV SODFHWKHLUWUXVWLQRXUVHUYLFHVEHFDXVHWKH\NQRZWKDWZLWKXV WKHLUDQLPDOVDUHLQWKHEHVWKDQGV7KLVVKRXOGDQGZLOOFRQWLQXH WREHWKHFDVHLQIXWXUH7KHGHFLVLRQWRQRWWUDQVSRUWGRJVDQG FDWVIRUDQLPDOH[SHULPHQWVSURYLGHVDIXUWKHUVLJQDOWKDWIRUXV WKHIRFXVLVRQWKHZHOIDUHRIWKHDQLPDOV´ $UHFHQWPHHWLQJRI&,7(6LQ'RKDIDLOHGWRUHDFKDQDFFRUG RQQHZWUDGHPHDVXUHVWRSURWHFWPDULQHVSHFLHV5HSUHVHQWDWLYHV RIRYHUJRYHUQPHQWVDJUHHGWRVWUHQJWKHQZLOGOLIHPDQDJH PHQWIRUVHYHUDOUHSWLOHVFRPEDWLOOHJDOWUDIILFNLQJLQWLJHUVDQG UKLQRVDQGXSGDWHWKHWUDGHUXOHVIRUDZLGHUDQJHRISODQWDQG DQLPDOVSHFLHV &DUORV'UHZVKHDGRIWKH:RUOG:LOGOLIH)XQG¶VVSHFLHV SURJUDPFRPPHQWHG³,WLVVKDPHIXOWKDWPDQ\&,7(6JRYHUQ PHQWVLJQRUHGVFLHQFHLQIDYRURISROLWLFDOJDLQZKHQPDNLQJ GHFLVLRQVRQPDULQHVSHFLHV7KHVHLVVXHVGRPLQDWHGWKLVPHHWLQJ 3\M[OHUZH»Z -YHURM\Y[ SV\UNLMVY KVTLZ[PJWL[Z DQGZLOOFRPHXSDJDLQLQIXWXUHPHHWLQJV,I&,7(6FDQQRWVHW DVLGHSROLWLFDOFRQVLGHUDWLRQVDQGIROORZVFLHQWLILFHYLGHQFHWKH LPSOLFDWLRQVIRUFRQVHUYDWLRQVXVWDLQDEOHXVHRIPDULQHVSHFLHV DQGFRDVWDOOLYHOLKRRGVDUHZRUU\LQJ´ /XIWKDQVDMRLQV$LU&DQDGD&DWKD\3DFLILFDQG4DQWDVLQ QRWVKLSSLQJDQLPDOVWRODERUDWRULHV 6285&($LU&DUJR:RUOG 7YL]LU[PUN;YH]LS/LHKHJOLZ 0 DQ\DLUWUDYHOHUVH[SHULHQFHPLJUDLQHVRUWHQVLRQW\SH KHDGDFKHV,I\RXJHWDLUSODQHUHODWHGKHDGDFKHVWU\WDN LQJDQDQWLLQIODPPDWRU\PHGLFLQHVXFKDVQDSUR[HQ$OHYHRU LEXSURIHQ0RWULQDIHZKRXUVEHIRUH\RXH[SHFWWKHKHDGDFKH WRRFFXU2U\RXFDQWDONWR\RXUGRFWRUDERXWDSUHVFULSWLRQIRU 0LGULQ²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¶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³7KHUH LVELJPRQH\LQWKLV´VD\V&KULVWRSKHU9DQGHU0H\VHQLRUSURG XFWPDQDJHUIRU*RRJOH¶VEXVLQHVVOLQHRISURGXFWV 5HVHDUFKILUP,'&SURMHFWVVSHQGLQJRQFORXGVHUYLFHVE\ 86FRPSDQLHVZLWKRUIHZHUHPSOR\HHVWRJURZIURP ELOOLRQWKLV\HDUWRELOOLRQLQ%XWWKDWFRXOGWXUQRXWWR EHFRQVHUYDWLYHLIDZDUHQHVVVSUHDGV³:H¶UHVHHLQJUHDOLQQRYD WLRQDQGUHDOJURZWKDQGLW¶VDOOFRPLQJIURPFORXGFRPSXWLQJ´ VD\V0DUF%HQLRII&(2RI6DOHVIRUFHFRPD6DQ)UDQFLVFR EDVHGVXSSOLHURISURJUDPVWKDWPDQDJHFXVWRPHUUHODWLRQV :SLLWPUNIL[[LY 7HVWLPRQLDOVIURPHDUO\DGRSWHUVEHDURXWWKHEHQHILWFODLPV PDGHE\6DD6SURSRQHQWV7DNH*OHQ6PLWK&(2RI&RPPHU FLDO5HWURILWWHUV5HF\FOHUVDQHQHUJ\DXGLWLQJDQGUHF\FOLQJ FRPSDQ\LQ8SSHU0DUOERUR0DU\ODQG6PLWKNQRZVILUVWKDQG KRZKRVWHGVHUYLFHVFDQPLQLPL]HGLVUXSWLRQVVKRXOGDFRPSDQ\ FRPSXWHUJHWORVWRUVWROHQ ,QHDUO\6PLWKPRYHGDOOKLVFXVWRPHUDQGEDQNLQJUH FRUGVLQWRRQOLQHV\VWHPVVXSSOLHGE\6DOHVIRUFHFRP)LQDQFLDO )RUFHFRPDQG,QWXLW¶V4XLFN%RRNV2QOLQH7KDWDOORZHGKLPWR VKHGWKH:LQGRZV3&VHUYHUKHNHSWRQWKHSUHPLVHVWRVWRUHWKLV LQYDOXDEOHGDWD 5HFHQWO\WKLHYHVEURNHLQDQGVWROHHLJKWGHVNWRS3&V XVHGE\KLVRIILFHVWDIIDORQJZLWKDWUXFNORDGRIUHF\FOHGWHFK HTXLSPHQW6PLWKZDVXQUXIIOHG³2Q0RQGD\ZHZHQWRXWDQG ERXJKWQHZFRPSXWHUVSOXJJHGWKHPLQDQGZHZHUHEDFNXS DQGUXQQLQJE\QRRQ´KHVD\V³:HGLGQ¶WKDYHWRUHFUHDWH DQ\WKLQJ´ $W([HFXWLYH(QYHORSHD5DQFKR&XFDPRQJD&DOLIRUQLD EDVHGPDQXIDFWXUHURIEURFKXUHVDQGSODFDUGVRIILFHPDQDJHU &ODXGLD%UDNHGHVSHUDWHO\QHHGHGDPRUHHIILFLHQWDFFXUDWHZD\ WRNHHSWUDFNRIFRQWLQXDOO\PRUSKLQJVDOHVWD[UDWHVDQGUXOHV LPSRVHGE\WKHKDOIGR]HQVWDWHVZKHUH([HFXWLYH(QYHORSHVHOOV LWVSURGXFWV7KHFRPSDQ\DFFRXQWDQWVLPSO\FRXOGQRWNHHSXS (UURUV²DQGDXGLWV²UHVXOWHG %\WXUQLQJWKDWWHGLRXVGHWDLOHGWDVNRYHUWR$YDODUD¶V VSHFLDOL]HGV\VWHPVWKHFRPSDQ\VDYHVHLJKWWRHPSOR\HH KRXUVDZHHNRUDQQXDOO\0RUHLPSRUWDQWLWVH[SRVXUH WRDXGLWVKDVEHHQUHGXFHGDOORZLQJ%UDNHWRVOHHSEHWWHU³,WQRW RQO\PDNHVP\OLIHHDVLHULWDOORZVPHWRIRFXVRQPRUHYDOXDEOH DUHDVRIRXUEXVLQHVV´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¶VPDUNHWSODFHSDUWQHUV ³7KHLGHDZDVVLPSOH´VD\V0DWW*ORW]EDFKSURGXFW PDQDJHPHQWGLUHFWRUIRU*RRJOHEXVLQHVVVRIWZDUH³(YHU\GD\ WKHUHZDVDQHZYHQGRURIIHULQJXQLTXHVHUYLFHVLQWKHFORXG :HZDQWHGWRJLYHVPDOOEXVLQHVVDFHQWUDOL]HGSRLQWZKHUHWKH\ FRXOGVHHRIIHULQJVUHDGUHYLHZVDQGLQVWDOOWKHRIIHULQJV´ 7RP+LSSHQVWHHOYLFHSUHVLGHQWRI/LTXLG&RQFUHWHD 6HDWWOH:DVKLQJWRQEDVHGPDNHURIFRDWLQJVIRUFRQFUHWHDQG VWHHOVWUXFWXUHVKDVFRPHWRUHO\RQ*RRJOH$SSVDQGLWVPDU NHWSODFHSDUWQHU6PDUW6KHHWDVXSSOLHURISURMHFWPDQDJHPHQW VRIWZDUH+LSSHQVWHHORIWHQFROODERUDWHVZLWKPXOWLSOHHPSOR\HHV LQWKHILHOG0HPEHUVRIDZRUNJURXSPLJKWEHVLPXOWDQHRXVO\ ZRUNLQJLQRQHRUERWKRIWKHFORXGSURJUDPVXVLQJ$SSOH0DFV :LQGRZV3&VRU$SSOHL3KRQHV ³:KHQZH¶UHGRQHZHFDQKLWVDYHDQGHYHU\ERG\KDVWKH FXUUHQWYHUVLRQ´VD\V+LSSHQVWHHO³7KDWVROYHVWKHSUREOHPRI PXOWLSOHYHUVLRQVRIDILOHIO\LQJDURXQGLQHPDLODWWDFKPHQWV´ ,%0LVPDNLQJDVLPLODUEHWWKDWVPDOOILUPVZLOOJUDYLWDWHWR DPL[RIEDVLFDQGVSHFLDOL]HGKRVWHGVHUYLFHVVHDPOHVVO\EOHQGHG E\DWHFKJLDQWGRLQJWKHEHKLQGWKHVFHQHVKHDY\OLIWLQJ7KLV VSULQJLWDQQRXQFHGSDUWQHUVKLSVZLWK8366N\SH6DOHVIRUFH FRPDQG6LODQLVDQHVLJQDWXUHDXWKHQWLFDWLRQPDNHU6XEVFULE HUVWR/RWXV/LYH,%0¶VKRVWHGHPDLODQGGRFXPHQWVKDULQJVHU YLFHFDQQRZVKLSSDFNDJHVPDNHSKRQHFDOOVPDQDJHFXVWRPHU UHFRUGVDQGDXWKHQWLFDWHGRFXPHQWVGLUHFWO\IURP/RWXV/LYH ,%0LQWHQGVWRDGGPRUHSDUWQHUV³1RZPRUHWKDQHYHU\RX¶UH JRLQJWRVHHXVDGDSWLQJWRWKHQHHGVRIVPDOOEXVLQHVV´VDLGRQH ,%0RIILFLDO ¸:H]L[V>LI¹ 0LFURVRIWPHDQZKLOHSODQVWRUROORXW2IILFHWKHODWHVW LWHUDWLRQRIWKHZRUOG¶VPRVWZLGHO\XVHGVXLWHRIFOHULFDOSUR JUDPVVRPHWLPHLQ-XQH $VPDOOEXVLQHVVRZQHUZLOOEHDEOHWREX\2IILFH IRUHPEHGGHGLQDQHZ:LQGRZV3&RULQDVKULQN ZUDSSHGER[$NH\QHZIXQFWLRQ:KHQFORVLQJD:RUGGRFX PHQW([FHOVSUHDGVKHHWRU3RZHU3RLQWVOLGHSUHVHQWDWLRQWKH XVHUZLOOEHDEOHWRQDYLJDWHWR³6DYH6HQG´WKHQ³6DYHWR :HE´ 7KHILOHZLOOWKHQVDLORIIWR6N\'ULYHDIUHHILOHVWRUDJH VHUYLFHUHVLGLQJRQ0LFURVRIW¶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¶WVWRSSHG &HQWUDO'HVNWRSD3DVDGHQD&DOLIRUQLDEDVHGVWDUWXSIURP KRVWLQJDVHUYLFHWKDWHQDEOHVXVHUVRI2IILFHDQG2IILFH WRFROODERUDWHLQWKH,QWHUQHWFORXG )RUSHUPRQWKSHUXVHU&HQWUDO'HVNWRSOHWV\RX VDYHROGHU2IILFHILOHVRQLWVVHUYHUVZKHUHPXOWLSOHXVHUVFDQ VLPXOWDQHRXVO\DFFHVVWKHVDPHILOH7KHUH¶VQRQHHGWRSD\IRU 2IILFHRUPDNHWKHVZLWFKWR*RRJOH$SSVVD\V&HQWUDO¶V FRIRXQGHUDQG&(2,VDDF*DUFLD ³:HNQRZVPDOOEXVLQHVVZDQWVWRFRQVXPHSURGXFWYLD VRIWZDUHDVDVHUYLFH´KHVD\V³,W¶VDIIRUGDEOHIOH[LEOHDQG\RX SD\DV\RXJRLQVWHDGRISD\LQJDODUJHXSIURQWOLFHQVLQJIHH´ 9PZPUN9LSVJH[PVUZ! (UV[OLY.VVK:PNUMVY1VIZ $ SULO¶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¸)YPNO[LYM\[\YL¹HOLHK ³7KHVHVXUYH\UHVXOWVDUHDSRVVLEOHHDUO\VLJQRIDUHFRYHU\IRU WKHUHORFDWLRQLQGXVWU\DQGWKH\LQGLFDWHWKDWFRPSDQLHVDUHILQG LQJZD\VWRFRQWDLQFRVWVZKLOHUHWDLQLQJHPSOR\HHLQFHQWLYHV´ VDLG-DFN*ULIILQSUHVLGHQWDQGFKLHIRSHUDWLQJRIILFHUDW$WODV 9DQ/LQHVLQDVWDWHPHQWDFFRPSDQ\LQJWKHVXUYH\¶VUHOHDVH ³%XWWKHEHVWQHZVLVWKDWILUPVDUHSUHGLFWLQJDEULJKWHUIXWXUH ERWKIRUWKHPVHOYHVDQGWKHRYHUDOOHFRQRP\´ 7KHPRYLQJLQGXVWU\LVQ¶WWKHRQO\RQHQRWLFLQJWKLVWUHQG %XVLQHVVLVXSPRUHWKDQWZRIROGDW6FKRRO&KRLFH,QWHUQDWLRQDO LQ:KLWH3ODLQV1HZ<RUNZKLFKZRUNVZLWKSDUHQWVIDFLQJ RYHUVHDVMREUHORFDWLRQVZKRQHHGWRILQGWKHEHVWVFKRROVIRU WKHLUFKLOGUHQLQWKHLUGHVWLQDWLRQFRXQWU\7KHILUPZRUNVZLWK FRPSDQLHVDVQRWDEOHDV)HG([)';3HSVL&R3(3.UDIW )RRGV.)7&RQ$JUD&$*&UHGLW6XLVVH*URXS&68%6 8%6DQGVHYHUDORWKHUV 6FKRRO&KRLFHLVWKHEXVLHVWLW¶VEHHQLQLWV\HDUKLVWRU\ VD\V3UHVLGHQW/L]3HUHOVWHLQ³7KHUH¶VWRQVRIUHORFDWLRQVDKXJH LQFUHDVHDQG,WKLQNWKDWZLOOFRQWLQXH´VKHVD\V3HUHOVWHLQ EHOLHYHVWKHXSWLFNLQKHUEXVLQHVVLVDEDURPHWHUIRUWKHHFRQRP\ DVDZKROH6WLOOVKHVD\VWKHPDQQHULQZKLFKFRPSDQLHVDUH UHORFDWLQJZRUNHUVDQGWKHLUIDPLOLHVLVVRPHZKDWGLIIHUHQWWKDQ LQ\HDUVSDVW %XVLQHVVHVDUHIRUJRLQJPDQ\RIWKHSHUNVWKDWRQFHDFFRP SDQLHGLQWHUQDWLRQDOUHORFDWLRQVKHVD\V7KRVHLQFOXGHLWHPV VXFKDVSDLGKRXVLQJRUFDUV,QDQHIIRUWWRNHHSFRVWVLQFKHFN FDXWLRXVFRUSRUDWLRQVDUHLQVWHDGRSWLQJWRUHORFDWHHPSOR\HHV DVLIWKH\ZHUHORFDOKLUHV6WLOO3HUHOVWHLQVD\VZKLOHUHORFDWLRQ SDFNDJHVDUHQ¶WDVVZHHWDVWKH\RQFHZHUHWKH\PD\EHWKHGLI IHUHQFHEHWZHHQNHHSLQJRUJHWWLQJDMREDQGQRW 0[»Z^VY[O[HRPUNHSVZZ ,QUHFHQW\HDUVWKHIDOOLQJUHDOHVWDWHPDUNHWKDVPHDQWIHZHU MREVHHNHUVZHUHZLOOLQJWRFRQVLGHUUHORFDWLRQIRUIHDURIORVLQJ ZKDWYDOXHPLJKWEHOHIWLQWKHLUKRPHV%XWHYHQWKDWFRQFHUQ LVQ¶WNHHSLQJVRPHMREVHHNHUVIURPSXOOLQJXSURRWVDQGJHWWLQJ RQZLWKWKHLUFDUHHUVVD\V1HZ<RUNUHDOHVWDWHEURNHU-3KLOLS )DUDQGD )DFHGZLWKUHPDLQLQJRXWRIZRUNRUORVLQJDMREZRUNHUV DUHWDNLQJPDWWHUVLQWRWKHLURZQKDQGVDQGILQDQFLQJWKHLURZQ UHORFDWLRQHYHQLILWPHDQVORVLQJPRQH\)DUDQGDVD\V³:KHQ \RXKDYHWRJHWRXWRI'RGJH\RXGRQ¶WKDYHWKHOX[XU\RIEHLQJ VSHFXODWLYHRQDVNLQJSULFH´KHVD\V³<RXKDYHWRSULFH\RXU KRXVHWRWKHERQHLQWKHKRSHVWKDW>DEX\HU@ZLOOMXPSRQLW´ 7KDWVWUDWHJ\PD\LQYROYHVHOOLQJDKRXVHIRUOHVVWKDQWKH PRUWJDJHGDPRXQWNQRZQDVDVKRUWVDOH)DUDQGDZKRVSHFLDO L]HVLQVXFKWUDQVDFWLRQVVD\VKH¶VZRUNLQJULJKWQRZZLWKD FRXSOHLQWKDWVLWXDWLRQZKRDUHSODQQLQJDPRYHWR)ORULGDDIWHU RQHRIWKHPDFFHSWHGDMREDWDXQLYHUVLW\WKHUH7KH\OHDSHGDW WKHFKDQFHWRPRYHHYHQWKRXJKWKHMRERIIHUGLGQ¶WLQFOXGHD UHORFDWLRQSDFNDJHKHVD\V³7KH\MXVWZDQWWRJHWRXW´ ;^V;VVSZMVY:THSS)\ZPULZZLZ % XVLQHVVH[SHQVHWUDFNLQJLVDQLPSRUWDQWSDUWRIPDQDJ LQJ\RXUFRPSDQ\¶VSURILWDELOLW\ZKHWKHU\RX¶UHMXVW VWDUWLQJRXWJRLQJWKURXJKDWUDQVLWLRQRUJURZLQJ,I\RX¶UH UXQQLQJ\RXUEXVLQHVVRXWRI\RXUKRPH\RXDOVRKDYHWR FRQWHQGZLWKVHSDUDWLRQRISHUVRQDODQGEXVLQHVVH[SHQVHV &KDUOLH&RNHUD&36LQ)DOOV&KXUFK9LUJLQLDRIIHUVWZR WRROVWKDWPD\KHOS\RX³([SHQVH7UDFNLQJIRU6PDOO%XVL QHVV´DQDUUDWLYHWKDWZLOOKHOS\RXGHILQHDQGRUJDQL]H\RXU EXVLQHVVH[SHQVHVDQGD³%XVLQHVV([SHQVH&DOFXODWRU´ ZKLFKZLOOKHOS\RXGLVWLQJXLVKEHWZHHQSHUVRQDODQGEXVL QHVVH[SHQVHV <RXFDQDFFHVVERWKRIWKHVHWRROVDWZZZFSDFRNHU FRPEXVLQHVVVHUYLFHVKWPO TECHNOTES >OH[:VJPHS4LKPH>PSS3VVR3PRLPU %\)UHGGLH/DNHU , W¶VHDV\WRJHWFDXJKWXSLQWRGD\¶VWUHQGVRUHYHQIRFXVRQWKH QH[WVL[PRQWKV6RPHRI¶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²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¶OOILQG PRVWGLJLWDOH[SHULHQFHVZLOOEHDEOHWROHYHUDJHWKHSRZHU RI\RXUVRFLDOQHWZRUNVLQDZD\WKDWWDSVLQWR\RXUUHDGLO\ DYDLODEOHSHUVRQDOLQIRUPDWLRQDQGWKHUHODWLRQVKLSV\RX¶YH HVWDEOLVKHG:H¶UHDOUHDG\VHHLQJWKHEHJLQQLQJVRIWKLVZLWK )DFHERRN&RQQHFWDQG*RRJOH¶V)ULHQG&RQQHFW 2XULQWHUDFWLRQZLWKVHDUFKHQJLQHVZLOOEHGLIIHUHQW 5HDOWLPHLQIRUPDWLRQLQ*RRJOHVHDUFKHJIURP7ZLW WHUEORJUHVXOWVDQGXVHUUHYLHZVZLOOEHPRUHSURPLQHQW *RRJOH¶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` [OL`KVI\ZPULZZ^PSSILHMMLJ[LK UHVXOWVRU*RRJOH¶VVRRQWREHUHOHDVHG6RFLDO6HDUFKZLOO SHUPHDWHVHDUFKUHVXOWVZLWKFRQWHQWWKDWZLOOQRWEHPDQ DJHGE\*RRJOH¶VLQIDPRXV3DJH5DQNEXWE\VRFLDOLQIOXHQFH DQGUHOHYDQFHWR\RXUVRFLDOQHWZRUN'LVFRYHULQJSHRSOH ZKRFDQKHOS\RXUHDFK\RXUGHVLUHGFRQVXPHUZLOOEHFRPH H[SRQHQWLDOO\PRUHHIIHFWLYHDQGLPSRUWDQW 5DWLQJVHYHU\ZKHUH,QWRGD\¶VZRUOGKDYLQJDFRPPHUFH VLWHWKDWGRHVQ¶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³0\VHUYLFHLVGRZQ´ RU³,QHYHUUHFHLYHGP\SDFNDJH´ 5LGLQJWKH*RRJOHZDYH,W¶VVWLOOHDUO\GD\VDV*RRJOH :DYHLVVWLOOSULPDULO\OLPLWHGWRGHYHORSHUVEXWLWKDVWKH SRWHQWLDOWRUHYROXWLRQL]HFROODERUDWLRQDQGHQJDJHPHQW :DYHRIIHUVPDUNHWHUVDXQLTXHZD\DWPLQLPDOFRVWWR DOORZFRQVXPHUVWRHQJDJHZLWKHDFKRWKHULQDZD\WKDWLV PLOHVEH\RQGDQ\WKLQJZH¶UHFXUUHQWO\XVLQJ6DYY\PDUNHW HUVZLOOGHYHORSH[WHQVLRQVIRU:DYHWKDWHYROYHLWVXQLTXH FRPPXQLFDWLRQWRROVHWLQWRDULFKEUDQGH[SHULHQFHWKDWLV LPPHUVLYHEXWDOORZVIRUQHZOHYHOVRILQWHUDFWLRQIURP FURZGVRXUFHGVWRU\WHOOLQJWRFURZGVRXUFHGSURGXFWGHVLJQ 7KLQNLQJEH\RQG³QRZQHVV´,QZHEHFDPHYHU\ IRFXVHGRQWKHUHDOWLPHQDWXUHRIVRFLDOPHGLD7KHLPSOL FDWLRQVEHKLQGFRQVXPHUIHHGEDFN DQGLQWHUDFWLRQDURXQGEUDQGVXVLQJ WRROVOLNH7ZLWWHURU)DFHERRN¶VQHZV VWUHDPFDXVHGPDUNHWHUVWRUHHYDOX DWHWKHSRZHURIVRFLDOPHGLDWRROV DORQJVLGH³WUDGLWLRQDO´GLJLWDOPHGLD FKDQQHOVVXFKDVVHDUFK/RRNLQJ LQWRWKHIXWXUHZH¶OOQHHGWRWU\DQG HYDOXDWHZKDW¶VQH[WDQGWKHOLNHO\ DQVZHULVEDVHGRQWKHQH[WHYROX WLRQRIWKH:HEDVZHNQRZLWWKH VHPDQWLF:HE,QDVHPDQWLF:HE ZRUOGVHDUFKHQJLQHVIRUH[DPSOH ZLOODQWLFLSDWHWKHEHVWVHDUFKUHVXOWV ZH¶UHORRNLQJIRUEDVHGRQZKDWWKH\ NQRZDERXWXVVXFKDVDOORXUSXEOLF VRFLDOQHWZRUNLQJSURILOHV7KHUHZLOO EHDQRSSRUWXQLW\IRUPDUNHWHUVZKR SXVKWKHOLPLWVRIWKHLULPDJLQDWLRQWR DQWLFLSDWHZKDWPDUNHWLQJZLOOORRN OLNHLQWKLVQH[WVWDJHRIWKH:HEDQG FUHDWLQJQHZDQGFRPSHOOLQJH[SHUL HQFHVWKDWZH¶UHRQO\WRXFKLQJWKH VXUIDFHRIQRZ 6RFLDOPHGLDHYHU\WKLQJDQGWKH UHWXUQRIGLJLWDOPHGLD6RFLDOIXQF WLRQVZLOOEHFRPHVRFRPPRQSODFHLQ GLJLWDOH[SHULHQFHVWKDWWKHWKRXJKWRI QRWKDYLQJVRFLDOO\HQKDQFHGH[SHUL HQFHVZLOOVHHPLOORJLFDO'LJLWDOPH GLDE\WKHLUYHU\QDWXUHDUHLQKHUHQWO\ VRFLDO,KRSHZH¶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¶VLQYHQWRU\XQLWVDQG XSORDGDOOLQYHQWRU\DQGORDGLQJGHWDLOVDORQJZLWKWKHSDFNLQJ OLVWEDFNRQWR0RYH0DQDJHU$SDUWIURPWKHREYLRXVHIILFLHQF\ UHODWHGEHQHILWVWKLVOHYHORILQWHJUDWLRQPHDQVWKDW0RYH0DQ DJHUFDQHDVLO\SURGXFHHOHFWURQLFVKLSPHQWILOHVLQWKHVWDQGDUG LQGXVWU\IRUPDWGHYHORSHGE\,$0 7KHGDWDH[FKDQJHEHWZHHQ0RYH0DQDJHUDQG9R[PHVROX WLRQVLVEDVHGRQWKHVWDQGDUGLQWHJUDWLRQLQWHUIDFHVRIIHUHGE\WKH WZRVRIWZDUHSDFNDJHV%RWKFRPSDQLHVXVHWKHVHLQWHUIDFHVWR LQWHJUDWHZLWKRWKHUV\VWHPV 6D\V0D[.UH\QLQRI9R[PH6RIWZDUH³:LWKHOHFWURQLF GDWDFROOHFWLRQTXLFNO\EHFRPLQJFRPPRQSUDFWLFHWKHIRFXVLV JUDGXDOO\VKLIWLQJWRLQWHJUDWLRQEHWZHHQVXUYH\LQYHQWRU\DQG VFDQQLQJPRGXOHVDQGPRYHPDQDJHPHQWV\VWHPV7KHUHDVRQ YHU\VLPSOHDQGF\QLFDO8QOHVVWKHGDWDIORZLVDXWRPDWHGQR ERG\KDVWKHUHVRXUFHVRUSDWLHQFHIRUPDQXDOGDWDUHHQWU\´ INDUSTRY NEWS (SVVRH[WLVWSLHUKL]LU[ZZOHWPUN 0(4TLTILYJVTWHUPLZ 4VR ) :HIH[HSV XUWKHULQJLWVREMHFWLYHWREHWKHSUH IHUUHGLPPLJUDWLRQSURYLGHULQ$VLD DQGWKH0LGGOH(DVW6DQWD)H5HORFD WLRQVKDVQDPHG-XQH0RNJURXSLPPL JUDWLRQPDQDJHU 0RNZKRLVEDVHGLQ.XDOD/XPSXU ZLOOIRFXVRQWKHFRQWLQXHGGHYHORSPHQW DQGHQKDQFHPHQWRIWKHFRPSDQ\¶VLPPL JUDWLRQVHUYLFHVZRUNLQJZLWKWKHWHDPV DFURVVWKHUHJLRQ6KHZLOOEHWKHJURXS¶V VLQJOHSRLQWRIFRQWDFWIRULPPLJUDWLRQ IRU6DQWD)H¶VFXVWRPHUVDQGSDUWQHUVDQG IRFXVRQFRQWLQXHGJURZWKWRPHHWWKHLU QHHGVDQGHQVXUHFRPSOLDQFHIRUWRGD\¶V PRELOHZRUNIRUFH 0RNKDVRYHU\HDUVRISURIHVVLRQDO H[SHULHQFHERWKLQSUDFWLFHDQGLQWKHRU\ ZLWKUHJDUGWRDOOPDMRUDVSHFWVRILP PLJUDWLRQPDWWHUVIRUODUJHPXOWLQDWLRQDO FRUSRUDWLRQVDVZHOODVORFDOFRPSDQLHV 6KHLVIOXHQWLQ(QJOLVK&DQWRQHVHDQG 0DOD\ Y 'DQ-RKQVRQD\HDUYHWHUDQIRU PHUO\ZLWK$OOLHG,QWHUQDWLRQDODQG&URZQ :RUOGZLGHLQWKH6DQ)UDQFLVFR%D\$UHD KDVMRLQHG1HZ:RUOG,QWHUQDWLRQDOWR IRFXVRQSURYLGLQJFRPSHWLWLYHSULFLQJ VXSSRUWIRUWKHFRPSDQ\¶VFOLHQWVDQG JOREDODJHQWSDUWQHUV $OVR5RG$PRVDQG-DPHV3RUWHU ERWKIRUPHUO\ZLWK%HNLQV,QWHUQDWLRQDO &KLFDJRKDYHEHHQQDPHGPDQDJHULQWHU QDWLRQDOJRYHUQPHQWVHUYLFHVDQGPLOLWDU\ FXVWRPHUVHUYLFHFRRUGLQDWRUUHVSHFWLYHO\ %RWK$PRVDQG3RUWHUZLOOEHPDQDJ LQJWKHLQWHUQDWLRQDOPLOLWDU\VKLSPHQWV WKURXJK,VODQG)RUZDUGLQJZKLFKZDV DFTXLUHGE\1HZ:RUOGLQ'HFHPEHU Y -RKQ6DEDWDORSUHVLGHQWRI3ODQHV &RPSDQLHV5HORFDWLRQDQG6WRUDJH6R OXWLRQVORFDWHGLQ:HVW&KHVWHU2KLRZDV UHFHQWO\HOHFWHGWR8QL*URXS,QF¶VERDUG RIGLUHFWRUV 8QL*URXS,QFORFDWHGLQ)HQWRQ 0LVVRXULLVDELOOLRQJOREDOWUDQV SRUWDWLRQDQGUHORFDWLRQHQWHUSULVHWKDWLV SDUHQWFRPSDQ\WRERWK8QLWHG9DQ/LQHV DQG0D\IORZHU7UDQVLW3ODQHV&RPSDQLHV LVD8QLWHGDJHQW6DEDWDORKDVEHHQDQ H[HFXWLYHZLWK3ODQHV&RPSDQLHVVLQFH DQGSUHVLGHQWVLQFH Y 7KH3DVKD*URXSKHDGTXDUWHUHGLQ &RUWH0DGHUD&DOLIRUQLDKDVQDPHG(ULF .OXQGHUGLUHFWRURIEXVLQHVVGHYHORSPHQW IRU*DWHZD\V,QWHUQDWLRQDO.OXQGHUKDV RYHU\HDUV¶H[SHULHQFHLQWKHLQWHUQD WLRQDOWUDQVSRUWDWLRQLQGXVWU\RIWKRVH \HDUVDVDQ,$0PHPEHU+HZLOOOHDGWKH *DWHZD\VFRPPHUFLDOKRXVHKROGJRRGV DQGORJLVWLFVWHDPVDQGZLOOSURPRWH 3DVKD¶V5HORFDWLRQ6HUYLFHV¶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¶VJRDOVDUHPHWDVZHOODV JRDOVZLWKFOLHQWVVHUYLFHSURYLGHUVDQG HPSOR\HHV+HLVDOVRDFFRXQWDEOHIRU FRPSOLDQFHZLWKUHJXODWLRQVIURPWKH FRPSDQ\LQGXVWU\DQG86JRYHUQPHQW LQFOXGLQJH[SRUWOLFHQVLQJDQGGDQJHURXV JRRGVKDQGOLQJ *UDIILVIOXHQWLQ)UHQFKDQGSURIL FLHQWLQ*HUPDQ ,?7(5:065: .VZZLSPU»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¶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¶VRSHUD WLRQVZLOOFRQWLQXHLQSODFHLQ/DZWRQ ³7KLVDFTXLVLWLRQZLOOSURYLGHVLJQLIL FDQWRSSRUWXQLWLHVIRU$USLQ9DQ/LQHV¶ DJHQWVWRSDFNDQGKDXOVKLSPHQWVWKDW DUHERRNHGE\$76,´VDLG'DYLG$USLQ SUHVLGHQWDQG&(2RI$USLQ*URXS 'D\WRGD\RSHUDWLRQVRI$76,DQG WKHDFTXLUHGFRPSDQLHVPDQDJHGE\$76, 6HQLRU9LFH3UHVLGHQW5RQ0F'RQDOG ZLOOEHKDQGOHGLQGHSHQGHQWO\RIWKH$USLQ FRPSDQLHV (.,5*@5,>: $ FH0LGZHVW0RYLQJDQG6WRUDJH RI/LWWOH&DQDGD0LQQHVRWDKDV MRLQHG$WODV9DQ/LQHV$FHLVRZQHGE\ YHWHUDQVRIWKH86PLOLWDU\6FRWW&R\OH LVSUHVLGHQWDQGRZQHURIWKHFRPSDQ\ $OVRMRLQLQJWKH$WODVIDPLO\LV0HL HU¶V0RYLQJDQG6WRUDJHKHDGTXDUWHUHG LQ6DOLQD.DQVDV7KHFRPSDQ\SUHVLGHQW LV5RGQH\0HLHU 6YWOLL4VZJOVWV\SVZ )LPUVNSV\UL^WYLZPKLU[VM [OL-0+0.SVIHS(SSPHUJL -0+0.SVIHS(SSPHUJL»Z5L^7YLZPKLU[ 2 ;OLUL^IVHYKMYVTSLM[!,YYVS.HYKPULY]PJLWYLZPKLU[";OVTHZ /HUIV]PJLWYLZPKLU[[YLHZ\YLY"(S4P[OHSPTTLKPH[LWHZ[WYLZP KLU["6YWOLL4VZJOVWV\SVZ)LPUVNSV\WYLZPKLU["9\WLY[4VYSL` ZLUPVY]PJLWYLZPKLU["4HYPV4HY[PULa]PJLWYLZPKLU[ -0+0.SVIHS(SSPHUJL 0U[YVK\JLZ5L^)VHYK 7 KH),',*OREDO$OOLDQFHUHFHQWO\DQQRXQFHGWKHQDPHV RILWVQHZERDUGRIGLUHFWRUVXQDQLPRXVO\HOHFWHGDWWKH )HGHUDWLRQ¶V*HQHUDO$VVHPEO\KHOGRQ$SULOLQ0HOERXUQH $XVWUDOLDGXULQJ),',¶V$QQXDO&RQIHUHQFH 3UHVLGHQW2USKHH0RVFKRSRXORV%HLQRJORXRI2USKHH %HLQRJORX,QWHUQDWLRQDO(OHIVLQD*UHHFH 6HQLRU9LFH3UHVLGHQW5XSHUW0RUOH\RI6WHUOLQJ 5HORFDWLRQ/RQGRQ8. 9LFH3UHVLGHQW(UURO*DUGLQHURI1HZ=HDODQG9DQ/LQHV :HOOLQJWRQ1HZ=HDODQG 9LFH3UHVLGHQW0DULR0DUWLQH]RI6HFXULW\,QWHUQDWLRQDO 0RYLQJ6$&/LPD3HUX 9LFH3UHVLGHQW7UHDVXUHU7KRPDV+DQERRI,&0 .XQJVKROPV$%6SDQJD6WRFNKROP6ZHGHQ ,PPHGLDWH3DVW3UHVLGHQW$O0LWKDO6WDU:RUOGZLGH 0RYHUV3YW/WG1HZ'HOKL,QGLD *HU`V\HMMVYKUV[[VQVPU& 7YV[LJ[`V\YI\ZPULZZMYVTTVUL[HY`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¶VIDFLO LW\LQ%HDXIRUWLHQRORQJGHOLYHU\RXWVRUH[FHVVPLOHDJHIRU VKLSPHQWVWKDWZRXOGQRWKDYHRWKHUZLVHTXDOLILHG (IV]LHUKYPNO[!<UP[LK=HUSPULZHNLU[(4YHaLR4V]PUN:`Z[LTZ TV]LZ[OL:[3V\PZ*HYKPUHSZPU[V)\ZJO:[HKP\TPU(WYPS <UP[LK4V]LZ*HYKPUHSZ)HJR[V :[3V\PZMVY:LHZVU6WLULY 7 KH6W/RXLV&DUGLQDOVEDVHEDOOWHDPPRYHGEDFNLQWR %XVFK6WDGLXPMXVWLQWLPHIRUWKH$SULOKRPHRSHQHU $0UD]HN0RYLQJ6\VWHPVD8QLWHG9DQ/LQHVDJHQWLQ6W /RXLV0LVVRXULXQORDGHGWZRWUXFNORDGVRIWKH&DUGLQDOV¶JHDU RQ)ULGD\DQG6DWXUGD\$SULODQGEULQJLQJDOORIWKHWHDP¶V HTXLSPHQWEDFNIURPLWVVSULQJKRPHLQ-XSLWHU)ORULGD ,QDOO$0UD]HNWUDQVSRUWHGDSSUR[LPDWHO\SRXQGV RIWKH&DUGLQDOV¶SURIHVVLRQDODQGSHUVRQDOLWHPV7KHFDUJR LQFOXGHGHYHU\WKLQJWKDWWKHFRDFKHVSOD\HUVDQGHTXLSPHQW PDQDJHUVQHHGHGIRUVSULQJWUDLQLQJ%DWVKHOPHWVEDVHEDOOV DQGH[HUFLVHDQGPHGLFDOHTXLSPHQWDOOPDGHWKHWULSEDFNWR6W /RXLV ³(YHU\\HDUZHORRNIRUZDUGWRKHOSLQJWKH&DUGLQDOVVWDUW WKHLUVHDVRQRXWRQWKHULJKWIRRWZLWKDVXFFHVVIXOPRYHWRDQG IURPVSULQJWUDLQLQJ´VDLG'DYH6DEDGDSUHVLGHQWRI$0UD]HN 7KH&DUGLQDOVKDYHHQOLVWHG$0UD]HNWRGRLWVVSULQJWUDLQLQJ PRYHHYHU\\HDUIRUWKHODVW\HDUV )VVUTH;OHPSHUK*LY[PÄLK I`(ZPHU9LSVJH[PVU (ZZVJPH[PVU 2 )VVUTH,_LJ\[P]L+PYLJ[VY;PKK`:;LLYH^P[SLM[YLJLP]LZHJLY[PÄJH[LMYVT(9( 7YLZPKLU[:\KLLW:OHOJLU[LYHUK(9(=PJL7YLZPKLU[/HUZ4\SSLY QHRIWKHIRXQGHUVRI$VLDQ5HORFD WLRQ$VVRFLDWLRQ7LGG\67HHUDZLWRI %RRQPDUHFHQWO\DFFHSWHGDFHUWLILFDWHIURP $5$3UHVLGHQW6XGHHS6KDKDQG$5$¶V9LFH 3UHVLGHQW+DQV0XOOHUGXULQJWKHRUJDQL]DWLRQ¶V VHFRQGDQQXDOPHHWLQJLQ&RORPER6UL/DQND LQ0DUFK$5$IRXQGHUVFRQVLVWLQJRIPHPEHUV IURPPDMRU$VLDQFRXQWULHVFDPHWRJHWKHU LQLQ%DQJNRN7KDLODQGWRGLVFXVVDQG OD\WKHJURXQGZRUNIRUWKHDVVRFLDWLRQ¶VRIILFLDO UHJLVWUDWLRQLQ7KHDVVRFLDWLRQ¶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¶ LQGXVWU\0U3DUNHUZDVDOZD\VDFRORUIXO FKDUDFWHUDWLQGXVWU\HYHQWV+HKDGPDQ\ IULHQGVDURXQGWKHZRUOGDQGKHZDQWHGWRHQVXUHWKDWWKH\ZHUHDZDUHRIKRZ PXFKKHDSSUHFLDWHGWKHLUORYHDQGVXSSRUWGXULQJKLVPRQWKEDWWOHZLWKFDQFHU )LYH\HDUVDJR0U3DUNHU¶VZLIH&KULVWLQHORVWKHUEDWWOHZLWKEUHDVWFDQ FHU$VKHZDVDYHU\DFWLYHVXSSRUWHURIEUHDVWFDQFHUUHVHDUFKWKHIDPLO\KDV UHTXHVWHGWKDWWKRVHZKRZLVKWRFRPPHPRUDWHKLVOLIHPDNHDPHPRULDOFRQWULEX WLRQWRDORFDOEUHDVWFDQFHUDVVRFLDWLRQ ,WZDV&ROLQ3DUNHU¶VGHVLUHWKDW0RYH0DQDJHPHQW$XVWUDOLDZRXOGFRQ WLQXHWRWUDGHDQGJURZ+HKDGDUHSXWDWLRQLQWKHLQGXVWU\RIGHOLYHULQJSURDFWLYH DGYLFHDQGRXWVWDQGLQJFXVWRPHUVHUYLFHDQGLWLVWKH0RYH0DQDJHPHQW7HDP¶V LQWHQWLRQWKDWWKLVOHJDF\ZLOOFRQWLQXHZHOOLQWRWKHIXWXUHVDLG0LFKDHO%R\G JHQHUDOPDQDJHURI0RYH0DQDJHPHQW$XVWUDOLD +HLVVXUYLYHGE\KLVIRXUFKLOGUHQ ([SHZ=HU3PULZ 3H\UJOLZ5L^ *VUZ\TLY>LIZP[L $ WODV9DQ/LQHVKHDGTXDUWHUHGLQ (YDQVYLOOH,QGLDQDKDVODXQFKHGD QHZFRQVXPHUZHEVLWHWKDWPDNHVLWHDVLHU IRUFRQVXPHUVWRSODQWKHLUQH[WPRYH $WZZZDWODVYDQOLQHVFRPYLVLWRUVFDQ ILQGDORFDO$WODVPRYHUREWDLQDQLQVWDQW PRYLQJTXRWHWUDFNVKLSPHQWVDQGDFFHVV PRYLQJLQIRUPDWLRQDQGWLSV ³2XUQHZZHEVLWHZDVGHYHORSHGLQ UHVSRQVHWRWKHQHHGVRIWRGD\¶VEXV\DQG VDYY\FRQVXPHUVZKRZDQWWRH[SORUHDOO WKHLUPRYLQJRSWLRQVIURPIXOOVHUYLFHWR GRLW\RXUVHOI´VDLG%DUEDUD&R[$WODV 9DQ/LQHV¶GLUHFWRURIPDUNHWLQJFRP PXQLFDWLRQV³&RQVXPHUVFDQTXLFNO\DQG HDVLO\ILQGDQGQDYLJDWHWKHQHZVLWHDQG GHWHUPLQHWKHEHVW$WODVPRYLQJFKRLFHV WRPHHWWKHLUQHHGVDQGEXGJHW´ 7KHQHZVLWHKDVLQIRUPDWLRQRQ 86&DQDGDDQGLQWHUQDWLRQDOKRXVHKROG PRYHVDQGVWRUDJHRSWLRQV&RQVXPHUV FDQOHDUQPRUHDERXW$WODV¶V6PDUW0RYH DVHUYLFHGHVLJQHGDURXQGWUDQVSRUWDEOH YDXOWVWKDWPDNHPRYHVIDVWHUDQGRIIHU FXVWRPHUVPRUHIOH[LELOLW\,QDQHIIRUW WRSUHYHQWPRYLQJIUDXGWKHQHZ$WODV ZHEVLWHDOVRDOORZVFRQVXPHUVWRYHULI\ DJHQXLQH$WODVPRYHU2WKHUFRQVXPHU IULHQGO\UHVRXUFHVRQWKHVLWHLQFOXGHPRY LQJJXLGHVFXVWRPHUWHVWLPRQLDOVEORJV DQGIUHTXHQWO\DVNHGTXHVWLRQV 403,:;65,: )VVUTH4HYRZ[O(UUP]LYZHY`^P[O¸1V\YUL`VM*HYL¹PU;OHPSHUK , $0¶VROGHVWPHPEHULQ7KDLODQG UHFHQWO\PDUNHGDPLOHVWRQHE\ ODXQFKLQJLWVVORJDQ³3DFNDQG 0RYHZLWK&DUH´RQLWVWKDQ QLYHUVDU\)URPWKHFRPSDQ\¶VYHU\ ILUVWGD\VLQWKHLQGXVWU\%RRQPD KDVEHHQFRPPLWWHGWRGHYHORSLQJ DQGLPSURYLQJWKHTXDOLW\RIVHUYLFH WKDWDFFRUGLQJWRWKHFRPSDQ\KDV OHGLWWREHFRPH7KDLODQG¶VROGHVW DQGPRVWH[SHULHQFHGPRYLQJDQG UHORFDWLRQVHUYLFHSURYLGHU )LSV^!)VVUTHJHRL SPNO[Z\WMVYHUV[OLY`LHY VMZ\JJLZZPU (IV]L!4Y*OHP]\KOPTHUHNPUNKPYLJ[VYSLM[";PKK`:;LLYH^P[ L_LJ\[P]LKPYLJ[VYYPNO["HUKH[LHTVMZ[HMMJ\[HJHRLH[)VVUTH»Z [OHUUP]LYZHY`JLSLIYH[PVU /6569:(5+(>(9+: 0 RYH2QH5HORFDWLRQVSLFNHGXSDQDZDUGDW5HORFDWH0DJD]LQH¶VDQQXDODZDUGFHU HPRQ\LQ/RQGRQRQ0D\ 7KHJDODGLQQHUZDVKRVWHGE\OHJHQGDU\%ULWLVKMRXUQDOLVWDQGDXWKRU/LEE\3XUYHVZKR HQWHUWDLQHGKHUDXGLHQFHRILQGXVWU\YHWHUDQVZLWKDPXVLQJUHORFDWLRQDQHFGRWHVIURPKHURZQ \RXWK7KHFKLOGRIDFRQVWDQWO\RQWKHPRYHGLSORPDW3XUYHVKDGIDVFLQDWLQJVWRULHVWRVKDUH ³7KLVFHUHPRQ\LVDZHOOGHVHUYHGPRPHQWRIJORU\IRUWKRVHZKRDUHRQWKHIURQWOLQHLQKHOS LQJHPSOR\HHVDQGWKHLUIDPLOLHVWRFDUU\RQZLWKJRRGOLYHVLQQHZFLUFXPVWDQFHV´VKHVDLG $WWKHEODFNWLHJDWKHULQJ)LRQD0XUFKLHWKHPDJD]LQH¶VPDQDJLQJHGLWRUQRWHG³$V WKHHFRQRP\VWUXJJOHVRXWRIUHFHVVLRQLQWRDIUDJLOHUHFRYHU\LW¶VPRUHLPSRUWDQWWKDQHYHUWR SURPRWHDQGFHOHEUDWHEHVWSUDFWLFHDQGWRQXUWXUHWDOHQW´ 0RYH2QH5HORFDWLRQVZDVKRQRUHGZLWKWKH7HFKQRORJLFDO,QQRYDWLRQLQ5HORFDWLRQ DZDUGIRULWVYLUWXDO&LW\*XLGHVGHYHORSHGWRSURYLGHUHFHQWO\DUULYHGH[SDWULDWHVDIXOOVXLWH RILQGLVSHQVDEOHLQIRUPDWLRQDERXWOLIHLQWKHLUQHZFLW\(DFKJXLGHKDVDVLWVFHQWHUSLHFH DVHWRIPLQLGRFXPHQWDULHVFRYHULQJVXEMHFWVVXFKDVH[SDWULDWHKHDOWKFDUHWUDQVSRUWDWLRQ KRXVLQJDQGLQWHUQDWLRQDOVFKRROV7KHYLGHRVDUHDFFRPSDQLHGE\DVHWRIXVHIXO,QWHUQHW UHVRXUFHVJDWKHULQJLQRQHSODFHDZHDOWKRILQIRUPDWLRQIRUUHORFDWLQJH[SDWULDWHV ³3HRSOHXVXDOO\VHHNLQIRUPDWLRQRQWKH:HE´VDLG-RQ+DUPDQ0RYH2QH¶VSURGXFW PDQDJHUIRUUHORFDWLRQVHUYLFHV³EXWWKHW\SHRILQIRUPDWLRQZHKDYHLQRXUFLW\JXLGHVOLNH KRZWRYDOLGDWHSXEOLFWUDQVSRUWWLFNHWVDQGSDUNLQJPHWHUVRUKRZWRGHDOZLWKORFDOODQG ORUGVLVQ¶WUHDGLO\DYDLODEOH:HKDYHWDNHQJUHDWFDUHWRGRFXPHQWWKHPLQXWLDHRIOLIHLQ WKHVHJXLGHVDQGKDYHLQFOXGHGLQWHUYLHZVZLWKRWKHUH[SDWVDQGSURILOHVRIORFDOEXVLQHVV SHRSOHDQGSDFNDJHGLWLQDFRQYHQLHQWZD\IRUSHRSOHWRXVHLQWKHUXQXSWRWKHLUPRYH:H EHOLHYHWKDWZHKDYHFUHDWHGDIDQWDVWLFUHVRXUFHWRKHOSHDVHH[SDWVLQWRWKHLUQHZOLYHVDV VHDPOHVVO\DVSRVVLEOH´ 7KHJXLGHVUHIOHFW0RYH2QH¶VRUJDQL]DWLRQZLGHFRPPLWPHQWWRLQFRUSRUDWLQJWKHODWHVW WHFKQRORJLFDOLQQRYDWLRQVLQRUGHUWRHQVXUHH[FHOOHQFHZKHQVHUYLQJWKHFRPSDQ\¶VFOLHQWV DQGWKHLUDVVLJQHHV7KH&LW\*XLGHVDOVRVXSSRUW0RYH2QH¶VFRQVFLRXVDSSURDFKWRVXVWDLQ DELOLW\DVWKH\VLJQLILFDQWO\UHGXFHWKHXVHRISULQWLQJ5HQRZQHGMXGJHVZLWKGLVWLQJXLVKHG ILJXUHVIURPEXVLQHVVDFDGHPLDDQGWKH&KDUWHUHG,QVWLWXWHRI3HUVRQQHODQG'HYHORSPHQW &,3'RQWKHLUSDQHOGHVFULEHGWKH0RYH2QHJXLGHVDV³YHU\YLEUDQWDQGXSWRGDWH´DQG SUDLVHGWKHZD\LQZKLFKWKH\HQJDJHGXVHUVWKURXJKVRFLDOPHGLDDQGXVHRIYLGHRV$FFRUG LQJWR5HORFDWHMXGJHVSDUWLFXODUO\OLNHGWKHHDVHRIQDYLJDWLRQWUDQVODWLRQWRROVDQGXVHIXO OLQNVWRRWKHUZHEVLWHVDQGWKHZD\0RYH2QH5HORFDWLRQVKDG³WKRXJKWJOREDOO\DQGDFWHG ORFDOO\´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`4LUULHJJV\U[ZYLJLP]HISL*YV^U>VYSK ^PKL"HUK9PJR/VZLHWYLZPKLU[KVTLZ[PJZLY]PJLZ*YV^U >VYSK^PKLHJJLW[*4:(»Z7PUUHJSL(^HYK(SZVWPJ[\YLK!:[L]L >LP[LRHTW*4:(WYLZPKLU["=PUJL*HYKPUHSLVM*HYKPUHSL4V]PUN :[VYHNLSHZ[`LHY»Z7PUUHJSL(^HYK^PUULY"HUK;PT4J*HY[O` *4:(JOHPYTHU 7 KH&DOLIRUQLD0RYLQJDQG6WRUDJH$VVRFLDWLRQ&06$ SUHVHQWHGLWVKLJKHVWKRQRUWKH3LQQDFOH$ZDUGWR&URZQ :RUOGZLGH0RYLQJ6WRUDJHD8QLWHG9DQ/LQHVDJHQWGXU LQJ&06$¶VDQQXDOFRQYHQWLRQ &URZQUDQNHGKLJKHVWDPRQJDSSOLFDQWVLQIRXUUHTXLUHG DUHDV²PDQDJHPHQWSUDFWLFHVPDUNHWLQJDGYHUWLVLQJDQGVDOHV SUDFWLFHVFXVWRPHUDQGYHQGRUUHODWLRQVDQGFRPPXQLW\VHUYLFH &06$FUHDWHGWKHDZDUGLQWRKRQRUPRYLQJDQGVWRUDJH FRPSDQLHVLQ&DOLIRUQLDZKRFRPPLWWRDKLJKVWDQGDUGRIHWKLFDO EXVLQHVVSUDFWLFHV ³:HDUHKRQRUHGWREHUHFRJQL]HGE\&06$´VDLG&URZQ :RUOGZLGH3UHVLGHQW5LFN+RVHD³&URZQ:RUOGZLGHWDNHV &06$¶VFRGHRIHWKLFVYHU\VHULRXVO\DQGZHEHOLHYHLW¶VKHOSHG &URZQLQDOODUHDVRIEXVLQHVVIURPKRZZHWUHDWRXUFXVWRPHUV WRKRZZHLQWHUDFWZLWKRXUHPSOR\HHV´ &06$FLWHG&URZQ¶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¶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²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±6KDQGRQJ%UDQFK 5RRP%)XOLQ0DQVLRQ1R)X]KRX5G 4LQJGDR&KLQD 7HO (PDLOGZDQJ#VDQWDIHFRPFQ 32&0U'DYLG:DQJ 6LQR6DQWD)H,QWHUQDWLRQDO7UDQVSRUWDWLRQ 6HUYLFHV&R/WG±7LDQMLQ%UDQFK 1R%XLOGLQJ+HQJZD0DQVLRQ 'D*X1DQ5RDG+H[L'LVWULFW 7LDQMLQ&KLQD 7HO (PDLOHZDQJ#VDQWDIHFRPFQ 32&0V(OOD:DQJ 7HDP$OOLHG 5RXWH3ULQFLSDWHGX3RUW *HQQHYLOOLHUV3DULV)UDQFH 7HO )D[ (PDLOSKLOOLSSHPLUDXOW#WHDPJRFFRP 32&0U3KLOOLSSH0LUDXOW 8QLYHUVDO5HORFDWLRQ,QGLD3YW/WG 6XLWH1R6HFWRU6DQ3DGD1DYL 0XPEDL,QGLD 7HO )D[ (PDLOVDLGDWWDQL#XQLYHUVDOUHORFDWLRQFRP :HEVLWHZZZXQLYHUVDOUHORFDWLRQFRP 32&0U6DL9'DWWDQL 8QLWHG5HORFDWLRQV7KDLODQG&R/WG %DQJQD7UDG6RL%DQJQD %DQJNRN7KDLODQG 7HO )D[ 32&0U6WHLQD.UDNKROP (PDLOVWHLQ#XQLWHGUHORFRP :HEVLWHZZZXQLWHGUHORFRP :<7730,94,4),9 5HG5HFUXLW/WG 7KH%RZHU/DQIRUG+DOO:LWKDP5RDG 0DOGRQ(VVH[&067(QJODQG 7HO )D[ (PDLOFDUROLQH#UHGUHFUXLWFRP :HEVLWHZZZUHGUHFUXLWFRP 32&0V&DUROLQH)URVWLFN 6SRQVRUV,&0*HUVRQ/WG(QJODQG %U\WRU,QWHUQDWLRQDO0RYLQJ&DQDGD WASHINGTON UPDATE )`1PT>PZL7(*,337 ,ULYN`*SPTH[L)PSS<WKH[L ORFDOXWLOLWLHVZLWKVWDWH3XEOLF8WLOLW\&RPPLVVLRQRYHUVLJKW +RZHYHUH[WHQGLQJGLYLGHQGVWRFRQVXPHUVYLDWKHWD[FRGHLV DSROLWLFDOQRQVWDUWHUIRUFRDOGHSHQGHQWVWDWHVWKHUHE\PDNLQJ OWKRXJKDJRRGGHDORIDWWHQWLRQKDVEHHQIRFXVHGRQWKH WKLVHOHPHQWRIWKHELOODWDUJHWIRUDPHQGPHQW7KHPDMRUGLIIHU 6HQDWH¶VGHOLEHUDWLRQVRQWKH)LQDQFLDO5HIRUPOHJLVODWLRQ HQFHEHWZHHQ.*/DQGWKH+RXVHELOOLVWKH6HQDWH¶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± HQHUJ\ELOOWKLV\HDU (QHUJ\RU$53$(0RGHOHGRQWKH'HSDUWPHQWRI'HIHQVH$G $VRIWKLVZULWLQJ6HQDWRUV-RKQ.HUU\'0$DQG-RH YDQFHG5HVHDUFK3URMHFWV$JHQF\'$53$WKHQHZO\DSSURYHG /LHEHUPDQ,&7SODQWRPRYHIRUZDUGZLWKWKHLUELOOEXW $53$(ZRXOGSURYLGHIXQGLQJIRUEDVLFUHVHDUFKDQGGHYHORS ZLWKRXW*UDKDP¶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²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nternational Association of Movers 2010‒2011 Membership Directory International Association of Movers 2010‒2011 Membership Directory @V\YJVW`VM[OL¶0(4(UU\HS4LTILYZOPW+PYLJ[VY`PZPU[OLTHPS 0[»ZHNYLH[YLZV\YJLMVYÄUKPUNX\HSP[`WHY[ULYZHSSV]LY[OL^VYSK·VULVM[OLTHU`ILULÄ[ZVM0(4TLT ILYZOPW;OPZ`LHY»ZLKP[PVUPZIL[[LY[OHUL]LYZ[YLHTSPULKMVYLHZLVM\ZLHUKP[PUJS\KLZHUL^MLH[\YL ^OPJOWYV]PKLZHKLZJYPW[PVUVM[OL:\WWSPLYTLTILYZ»WYVK\J[ZZLY]PJLZHUKZJVWLVMHJ[P]P[PLZ (SZV`V\JHUNL[[^VSPZ[PUNZ·HSWOHIL[PJHSHUKNLVNYHWOPJHS·PU[OLWYPU[HUKVUSPUL]LYZPVUZVM[OL KPYLJ[VY`HZ^LSSHZ[OYLLJVTWHU`JVU[HJ[ZPU`V\YSPZ[PUN^OLU`V\\WNYHKL`V\YTLTILYZOPW-VY KL[HPSZZLLWHNL *VTPUN<W5L_[;PTLPU 6U[OL*\[[PUN,KNL! -VJ\ZVU;LJOUVSVN`PU[OL0UK\Z[Y` 9 HWPKS`L]VS]PUN[LJOUVSVNPLZOH]LOLSWLK0(4TLTILYZILJVTLPUJYLHZPUNS`LMÄJPLU[HUKTVYLWYVÄ[ HISLV]LY[OLWHZ[ZL]LYHS`LHYZ;OL\ZLVMZVWOPZ[PJH[LK[VVSZZ\JOHZL[YHJRPUNOHUKOLSKZJHUULYZ HUKJSV\KJVTW\[PUNHYLUV^JVTTVUWSHJLPU[OPZKPNP[HSHNL ;OL[OLTLMVY[OL1\S`(\N\Z[PZZ\LVM;OL7VY[HSPZ[LJOUVSVN`HUKP[ZHWWSPJH[PVUZMVY0(4TLTILYZ>L ^LSJVTL`V\YPUW\[MVY[OPZPTWVY[HU[KPZJ\ZZPVUVM[OLYVSLVMUL^[VVSZHUKZLY]PJLZPU`V\YKH`[VKH` VWLYH[PVUZ/LYLHYLHML^HYLHZ^L^PSSL_WSVYLHUKX\LZ[PVUZMVY`V\[VJVUZPKLY! 7SLHZL[LSS\ZHIP[HIV\[`V\YJVTWHU`P[ZZLY]PJLZHUKOV^·MVYIL[[LYVYMVY^VYZL·[LJOUVSVN`OHZ HMMLJ[LK[OL^H``V\KVI\ZPULZZ /H]L`V\PU[YVK\JLKUL^Z`Z[LTZH[`V\YJVTWHU`&+PK`V\YLX\PYLJ\Z[VTPaLKHWWSPJH[PVUZZWLJPÄJ [V`V\YI\ZPULZZ&0MZV^O`& /HZ[OL\ZLVMPUUV]H[P]L[LJOUVSVNPLZWYV]LK[VILILULÄJPHSPUZ[YLHTSPUPUN`V\YVWLYH[PVUZ&/H]L [OL`ZH]LK`V\TVUL`&0MZV^OPJOJVZ[ZOH]LILLUWVZP[P]LS`HMMLJ[LK& (Z`V\OH]LUH]PNH[LK[OLUL^WYVK\J[ZHUKH]HPSHISL^OH[OHZZ\YWYPZLK`V\TVZ[& >OH[JOHSSLUNLZVYWYVISLTZOH]L`V\LUJV\U[LYLKZ\JOHZPUJVTWH[PIPSP[PLZIL[^LLU`V\YZ`Z[LTZ HUK[OVZLVM`V\Y[YHKPUNWHY[ULYZ&/V^OH]L`V\ILLUHISL[VKLHS^P[O[OVZLPZZ\LZ& +V`V\\ZLJSV\KJVTW\[PUN&0MZV^O`& +VLZ`V\YJVTWHU`OH]LH^LIZP[L&0MZVKV`V\KLZPNUP[PUOV\ZLVYV\[ZV\YJL[OL^VYR&/V^KV `V\TLHZ\YL[OLILULÄ[ZVM`V\Y^LIZP[LHUKP[ZHIPSP[`[VH[[YHJ[J\Z[VTLYZ& >OH[[`WLZVMZLJ\YP[`JVUJLYUZOH]L`V\HKKYLZZLKHUKOV^& >OH[HYL`V\YL_WLJ[H[PVUZHUKWSHUZMVYM\[\YLLUOHUJLTLU[Z[V`V\Y[LJOUVSVN` HYZLUHS& ;OL7VY[HS^LSJVTLZM\SS`JVTWSL[LKHY[PJSLZI\[HSZVPU]P[LZ`V\[VZLUKIYPLMJVTTLU[ZYLSH[LK[V`V\Y L_WLYPLUJLZPUHKHW[PUN[V[OLL]VS]PUNTHYRL[WSHJL 7SLHZLLTHPS`V\YZ[VY`·HSVUN^P[OKPNP[HSWOV[VZPMWVZZPISL·[V 1HUL[:LLS`'0(4V]LYZVYNHUKQV`JLTJK'LYVSZJVT +LHKSPUL!1\S` PORTAL ADVERTISING 04769;(5;05-694(;065*65*,9505. 769;(3(+=,9;0:05.9(;,:(5++04,5:065: -\SS7HNL ¹^PKL_¹OPNO )SLLK!¹^PKL_¹OPNOHKK¹H[LHJOLKNL 7HNL /VYPaVU[HSMVYTH[! =LY[PJHSMVYTH[! 7HNL /VYPaVU[HSMVYTH[! =LY[PJHSMVYTH[! )V_MVYTH[ 7HNL /VYPaVU[HSMVYTH[! =LY[PJHSMVYTH[! 7HNL /VYPaVU[HSMVYTH[! =LY[PJHSMVYTH[! 7HNL /VYPaVU[HSMVYTH[VUS`! (9,@6<:,5+05. (5,3,*;9650*(+& ¹^PKL_¹OPNO ¹^PKL_¹OPNO ;OL7VY[HSUV^HJJLW[ZJVTW\[LYNLULYH[LKÄSLZ NYHWOPJZHUKHKZZ\WWSPLKVU7*VY4HJJVT WH[PISL*+964Z(+::,5;)@,4(034<:; ),7+--03,: ¹^PKL_¹OPNO ¹^PKL_¹OPNO ¹^PKL_¹OPNO >OLUWYV]PKPUNLSLJ[YVUPJHSS`NLULYH[LKHK]LY [PZLTLU[Z`V\YKPZR4<:;ILHJJVTWHUPLKI` HWYPU[V\[ZOV^PUN^OH[[OLHKZOV\SKSVVRSPRL 0(4^PSSUV[HJJLW[KPZRZ[OH[HYYP]L^P[OV\[H OHYKJVW`WYVVM ¹^PKL_¹OPNO ¹^PKL_¹OPNO 0UHKKP[PVUHK]LY[PZLYZT\Z[WYV]PKL[OLMVSSV^ PUNPUMVYTH[PVUHSVUN^P[O[OLKPZR7SLHZL\ZL [OPZJOLJRSPZ[[VLUZ\YL[OH[`V\ZLUKL]LY`[OPUN [OH[^PSSILULLKLK[VHJJ\YH[LS`WSHJL`V\YHK! ¹^PKL_¹OPNO ¹^PKL_¹OPNO ¹^PKL_¹OPNO 56;,!7YPJLZZOV^UHYL[OL[V[HSJVZ[MVYVUL`LHYZP_ PZZ\LZ(SSUL^HKZT\Z[ILPUJVSVYLSLJ[YVUPJÄSLZT\Z[ ILZ\WWSPLK +LHKSPULZ[VYLJLP]LUL^HY[^VYR! T+PZR^P[OHKAPWVY*+964 T7YPU[V\[VYOHYKJVW`WYVVM T5V[LMVYTH[!FF7*FF4HJ T5V[LWYVNYHT\ZLK[VJYLH[L[OLHK FFF0U+LZPNU!ZWLJPM`]LYZPVUFFFFFF FFF*VYLS!ZWLJPM`]LYZPVUFFFFFF FFF0SS\Z[YH[VY!ZWLJPM`]LYZPVUFFFFFF FFF6[OLYZWLJPM`!FFFFFFFFFFFFFFFFF 73,(:,56;,!>LKVUV[HJJLW[HKZ JYLH[LKPU7\ISPZOLY 1\S`(\N\Z[0ZZ\L 1\S` :LW[LTILY6J[VILY0ZZ\L (\N\Z[ (55<(34,,;05.0::<, 5V]LTILY+LJLTILY0ZZ\L 5V]LTILY 1HU\HY`-LIY\HY`0ZZ\L1HU\HY` 4HYJO(WYPS0ZZ\L 4HYJO 4H`1\UL0ZZ\L4H` -VYM\Y[OLYPUMVYTH[PVUHIV\[7VY[HSKPZWSH`HK]LY[PZPUN JVU[HJ[)LS]PHU*HYYPUN[VUH[0(4! 9PJOTVUK/PNO^H`:\P[L(SL_HUKYPH=( 7OVUL! -H_! ,THPS!ILSJHYYPUN[VU'0(4V]LYZVYN (+=,9;0:,9:05+,? VW&HQWXU\ ,QWHUPRYH $%& ,QWHUQDWLRQDO6KLSSHUV$VVRFLDWLRQ $FWLYH0RYLQJ6KLSSLQJ -DFNVRQYLOOH%R[ $FWXV .OHLQ¶V0RYLQJ6WRUDJH&RUS $LU$QLPDO /$&0$ $PEDVVDGRU:RUOGZLGH /D5RVD'HO0RQWH $UURZSDN,QW¶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`*HSLUKHY $XJXVW² $XVWUDOLDQ)XUQLWXUH5HPRYHUV $VVRFLDWLRQ&RQIHUHQFH 6XUIHUV3DUDGLVH4/'$XVWUDOLD 6HSWHPEHU² WK1'7$)RUXPDQG([SR :DVKLQJWRQ'& 6HSWHPEHU² 3$,0$&RQYHQWLRQ 6DQ'LHJR&DOLIRUQLD 6HSWHPEHU²2FWREHU ,$0WK$QQXDO0HHWLQJ 6DQ'LHJR&DOLIRUQLD 2FWREHU² 6''&³3DFLÀF3HUVRQDO3URSHUW\ 7UDLQLQJ:RUNVKRS +RQROXOX:DLNLNL+DZDLL 6HSWHPEHU² ,$0WK$QQXDO0HHWLQJ 'HQYHU&RORUDGR 2FWREHU² ,$0WK$QQLYHUVDU\0HHWLQJ 1DWLRQDO+DUERU0DU\ODQG :DVKLQJWRQ'& (',725¶6127(9LVLWZZZLDPRYHUV RUJFDOHQGDUKWPOIRUDQH[SDQGHGOLVW RIPHHWLQJVDQGHYHQWVRILQWHUHVWWR,$0 PHPEHUV 7VY[HS ,KP[VYPHS*HSLUKHY 1\S`(\N\Z[ 7KH7HFKQRORJ\5HYROXWLRQLQ 0RYLQJ :LW[LTILY6J[VILY 7KH$QQXDO0HHWLQJ,VVXH *RLQJ*UHHQ 5V]LTILY+LJLTILY ,$0WK$QQXDO0HHWLQJ 5HFDSDQG3KRWRV