iEUD$]|QNpQWHVPHJiOODSRGiVRNV]DNWHUOHWH
'E
9t]PLQ VpJ
/HYHJ PLQ
VpJ
+XOODGpNJD]GiONRGiV7DODMYpGHOHP=DM 7HUPpV]HWLHU
IRUUiVKDV]QiODW
%LRGLYHU]LWiV9DGRQpO iOODWRN 1HPVSHFLILNXV
)RUUiV2(&'S
6]DNWHUOHWHNEHD]RQRVtWiVD
2SWLPiOLV HVHWEHQ HJ\HJ\ |QNpQWHV PHJiOODSRGiV VLNHUHVVpJH D N|YHWNH] NULWpULXPRNWyO IJJ tJ\ H]HN ILJ\HOHPEH YpWHOpYHO OHQQH EL]WRVtWKDWy D OHJMREEDQ D PHJIHOHO V]DNWHUOHW NLYiODV]WiVD
D]DGRWWV]DNWHUOHWHQDFpONLW&]pVHNSULRULWiVRNPHJKDWiUR]RWWViJD DV]DEiO\R]iVVDOpULQWHWWV]HUYH]HWHNV]iPD
D]DGRWWiJD]DWV]DNPDLV]|YHWVpJpQHNDEHIRO\iVDD]iJD]DWRQEHOO D]iJD]DWNRQFHQWUiFLyMD
D]DGRWWFpOUDIRUGtWKDWyiOODPLIRUUiVRNFVRSRUWRVtWiVD
D]HOpUQLNtYiQWFpOHOpUpVpKH]PLO\HQDUiQ\EDQV]NVpJHVDJD]GiONRGyNILQDQV]tUR]iVED W|UWpQEHYRQiVD
D V]DEiO\R]QL NtYiQW WHUOHWHQ OpY V]HUYH]HWHN HOKiUtWiVL N|OWVpJV]LQWMpQHN LVPHUWVpJH KRPRJHQLWiVD
DV]LJRU~EEV]DEiO\R]iVVDOYDOyIHQ\HJHWHWWVpJHUVVpJH DPHJOpYV]DEiO\R]iVIRUPiMDPpUWpNH
DNRPSHQ]iFLyV|V]W|Q]PHFKDQL]PXVRNOHKHWVpJH
DN|]ILQDQV]tUR]iVWiPRJDWiVRNHOWHUHPWpVHWiUVDGDOPLN|OWVpJHLVRFLDOFRVWVRIIXQGV D]DONXSR]tFLyNHUHGHWLDOORNiFLyMD
$ NXWDWiV IRO\WDWiVDNpQW D SRWHQFLiOLV V]DNWHUOHWHN HJ\ RO\DQ V]&UpVH LV PHJYDOyVtWKDWy DPHO\EHQ D] LWW IHOVRUROiVUD NHUOW |VV]HV NULWpULXPRW OHJDOiEELV D NULWpULXP N|]O D OHJIRQWRVDEEDNDWILJ\HOHPEHYpYHOHKHWOHV]&NtWHQLD]|QNpQWHVPHJiOODSRGiVRNDONDOPD]iVL WHUOHWHLW$WRYiEELDNEDQHJ\RO\DQHJ\V]HU&VtWHWWV]&NtWpVLPyGV]HUWDONDOPD]XQNDPHO\D OHJIRQWRVDEEV]HPSRQWRNDWILJ\HOHPEHYpYHD]RQRVtWNH]HOKHW V]iP~V]DNWHUOHWHWVDPHO\
WRYiEEL UpV]OHWHVHEE YL]VJiODWUD pUGHPHV $ NXWDWiV MHOHQOHJL Ii]LViEDQ DONDOPD]RWW V]&NtWpVQpOKiURPV]HPSRQWRWYHV]QNILJ\HOHPEH
DPHJIRJDOPD]RWWN|UQ\H]HWYpGHOPLFpOHOpUpVpKH]DN|UQ\H]HWYpGHOPLWHUYH]pVPHQQ\LUH V]iPtWDJD]GiONRGyLV]IpUDIRUUiVDLQDNEHYRQiViUD
D V]DNWHUOHW MHOHQOHJL V]DEiO\R]RWWViJD D] DONDOPD]RWW V]DEiO\R]yHV]N|]|N V H]]HO
|VV]HIJJpVEHQDV]LJRURGyV]DEiO\R]iVVDOYDOyIHQ\HJHWHWWVpJ
D WHUOHWHQ pULQWHWW JD]GiONRGyN V]iPD NRQFHQWUiFLyMD D JD]GiONRGyNRQ EHOO D QDJ\YiOODODWRNUpV]DUiQ\D
$N|UQ\H]HWLWHUYH]pVLUHQGV]HUDODSMiQDGyGyV]DNWHUOHWHND]|QNpQWHV PHJiOODSRGiVRNDONDOPD]iViUD
$MHOHQOHJL1HP]HWL.|UQ\H]HWYpGHOPL3URJUDP1.3DN|YHWNH]pYHVILQDQV]tUR]iVLWHUYHW iOOtWRWWDIHODNLW&]|WWIHODGDWRNYpJUHKDMWiViKR]V]NVpJHVIRUUiVRNUyORViUDNRQ WiEOi]DW
)HODGDW 1.3|VV]
/HYHJWLV]WDViJ
YpGHOHP
9t]YpGHOHP
)|OGYpGHOHP
.|UQ\H]HWHJpV]VpJJ\
7HUPpV]HWPHJU]pV
+XOODGpNiUWDOPDWODQtWiV
=DMpVUH]JpVHOOHQL
YpGHOHP
.|UQ\H]HWYpGHOPL.)
.|]YHWYH
N|UQ\H]HWYpGHOPL IHMOHV]WpV
0LQG|VV]HVHQ
$] HJ\HV pYHNEHQ D NRQNUpW IHODGDWRN PHJKDWiUR]iViW pV D ILQDQV]tUR]iVL LJpQ\ NRQNUpW HORV]WiViW D NO|QE|] IRUUiVRN N|]|WW D] DGRWW pYUH YRQDWNR]y ,QWp]NHGpVL WHUY KDWiUR]]D PHJ ( UpV]OHWHV ILQDQV]tUR]iVL IRUUiVOHERQWiV HV pYUH D .RUPiQ\KDWi UR]DWEDQ D UH pV UH YRQDWNR]y ,QWp]NHGpVL WHUY IRUUiVOHERQWiVD D .RUPiQ\KDWiUR]DWEDQ OHWW OHIHNWHWYH $ pV pYUH YRQDWNR]y D NLHPHOW WHUOHWHNUH WHUYH]HWW ILQDQV]tUR]iVL |VV]HJHNHW WDUWDOPD]y WiEOiN D] pV V]iP~
IJJHOpNEHQWDOiOKDWyDNPHJ
$ )JJHOpNHNEO OiWKDWy KRJ\ D N|UQ\H]HWYpGHOPL FpORN WHOMHVtWpVpKH] D JD]GiONRGyN KR]]iMiUXOiViWDWHUYH]NDWHOMHVILQDQV]tUR]iVLV]NVpJOHWiWODJiUDWHUYH]WpNEHQ 8J\DQDNNRU D] HJ\HV NLHPHOW WHUOHWHN N|]|WW MHOHQWV HOWpUpVHN PXWDWNR]QDN 6]iPRV WHUOHWHQQHPYDJ\FVDNHOKDQ\DJROKDWyPpUWpN&JD]GiONRGyLKR]]iMiUXOiVWWHUYH]WHND]1.3
LQWp]NHGpVLWHUYpEHQ,O\HQHNDWpUVpJLIHMOHV]WpVLSURJUDPRNDN|UQ\H]HWEL]WRQViJIHMOHV]WpVH DWHUPpV]HWLpUWpNHNYpGHOPHGHIXUFVDPyGRQLGHVRUROMDDEHRV]WiVDYL]HNPHQQ\LVpJLpV PLQVpJL YpGHOPpW LV (] XWyEEL HVHWEHQ HJ\UpV]W Q\LOYiQ DUUyO YDQ V]y KRJ\ D N|]]HPL YL]LN|]P&YHNEHUXKi]iVDLKR]YDOyJD]GiONRGyLKR]]iMiUXOiVWRWWLVDKROPiUPDJiQWXODMGRQ LV PHJMHOHQW D] |QNRUPiQ\]DWRN DODWW V]HUHSHOWHWLN PLYHO LWW D] |QNRUPiQ\]DWL WXODMGRQ GRPLQiOLOOHWYHDN|]]HPLMHOOHJPLDWWDWHYpNHQ\VpJHWD]|QNRUPiQ\]DWLV]IpUiEDVRUROMiN 8J\DQDNNRU D JD]GiONRGyNQiO V]HUHSO ]pUXV pUWpN HJ\pENpQW LV KLEiV KLV]HQ D] LSDUL V]HQQ\Yt]WLV]WtWiVVDONDSFVRODWEDQOpYIHMOHV]WpVHNHJ\HWOHQpYEHQVHPPDUDGWDNHOWHOMHVHQ
$] DGRWW pYL ± pV D W|EEL ± ,QWp]NHGpVL 7HUY V]iPDGDWDL WHKiW IHQQWDUWiVVDO NH]HOHQGN HOVVRUEDQD]pUWPHUWDJD]GiONRGyLV]IpUiEyOV]iUPD]yDGDWRNKLiQ\RVDN
(]W D SUREOpPiW PpJ LQNiEE WNU|]L KRJ\ D UH pV UH YRQDWNR]y WHUYHNEHQ D JD]GiONRGyN UpV]DUiQ\D D ILQDQV]tUR]iVEDQ pV UD FV|NNHQ (] MHOHQWV QRPLQiOLV FV|NNHQpVWWDNDUQDV]LQWHPLQGHQHJ\HV NLHPHOW WHUOHWHQ FV|NNHQQH D JD]GiONRGyN KR]]i MiUXOiVD D WHUYH]HWW FpORN PHJYDOyVtWiViQDN ILQDQV]tUR]iViEDQ D]RQEDQ Q\LOYiQ D] ,7N IXQNFLyMiQDN PyGRVXOiVD D PDJ\DUi]DW PpJ D NRUiEELQiO LV NHYpVEp YiOODOMiN IHO D JD]GiONRGyNN|UQ\H]HWYpGHOPLIHMOHV]WpVHLQHNVDMiWHUVILQDQV]tUR]iViQDNNLPXWDWiViW
6]HPSRQWXQNEyO ± H IHQQWDUWiVRN PHOOHWW LV ± IRQWRV D MHOHQWV V]LQW& JD]GiONRGyL ILQDQV]tUR]iVVDO WHUYH]HWW IHODGDWRN EHD]RQRVtWiVD $ pYL WiEOi]DW DODSMiQ D YHUVHQ\NpSHVVpJ MDYtWiVD D] DQ\DJ pV HQHUJLDKDWpNRQ\ViJ MDYtWiVD D N|UQ\H]HWNtPpO N|]OHNHGpVLLQIUDVWUXNW~UDNLDODNtWiVPLQGD]iWODJRWPHJKDODGy±IHOHWWL±JD]GiONRGyN iOWDOL N|]YHWOHQ ILQDQV]tUR]iVW WpWHOH] IHO pV D WHOHSOpVL pV WHUPHOpVL KXOODGpNJD]GiONRGiV ILQDQV]tUR]iVDLVHV]HULQWPDMGQHPHJ\|W|GUpV]EHQDJD]GiONRGyNUDPDUDG
$]|QNpQWHVPHJiOODSRGiVRNH]HNQHNDWHUYH]HWWPDJDVDEEVDMiWILQDQV]tUR]iVLDUiQ\RNQDND WpQ\OHJHVUHDOL]iOiViKR] Q\~MWKDWQDN MHOHQWV VHJtWVpJHW $] HVHWHN QDJ\ UpV]pEHQ XJ\DQLV D N|WHOH] HOtUiVRN |QPDJXNEDQ QHP EL]WRVtWMiN D PHJFpO]RWW N|UQ\H]HWL iOODSRW HOpUpVpW (QQHNV]iPRV±W|EEQ\LUHMyOLVPHUW±RNDOHKHW$WHUPHOpVUHYRQDWNR]yN|OWVpJpVHJ\pE LQIRUPiFLyNDV]LPPHWULNXVDQRV]ODQDNPHJDV]DEiO\R]ypVDWHUPHONN|]|WW$V]DEiO\R]y D KLiQ\]y LQIRUPiFLyNNDO MHOOHPH]KHW HVHWHNEHQ D NLERFViWiVL pUWpNHN KDWiUpUWpNHNHW ~J\
WXGMD FVDN PHJKDWiUR]QL DPHO\ QHP EL]WRVtWMD D NtYiQW N|UQ\H]HWL iOODSRWRW LPPLVV]LyV pUWpNHW 0iVUpV]W D] HOOHQU]pV V]&N LQWp]PpQ\L V]HPpO\L NDSDFLWiVDL SO D PRQLWRULQJ
MHOHQWV N|OWVpJHL PLDWW D] DODFVRQ\DEE V]LQW& HOOHQU]pV D JD]GiONRGyNDW D] HOtUiVRN EHWDUWiViQDNPHJNHUOpVpUH|V]W|Q|]KHWL7|EEV]DNWHUOHWHQDEtUViJRNPpUVpNHOWQDJ\ViJD YDJ\ D EQWHWpV NLV YDOyV]tQ&VpJH V]LQWpQ DUUD |V]W|Q|]KHW KRJ\ D NLW&]|WW FpOiOODSRW HOpUpVpKH] V]NVpJHV IHMOHV]WpVHNHW HOKDODVV]iN (]HNEHQ D] HVHWHNEHQ YDODPLO\HQ D]
pULQWHWWHNNHO N|W|WW PHJiOODSRGiV QDJ\EDQ KR]]iMiUXOKDW D WHUYH]HWW IHMOHV]WpVL NLDGiVRN WpQ\OHJHVUHDOL]iOiViKR]
(]HNXWiQQp]]NPHJPHO\HND]RNDNRQNUpWSURJUDPRNDPHO\HNQpOD1HP]HWL.|UQ\H]HW YpGHOPL 3URJUDP MHOHQWV KR]]iMiUXOiVW YiU D JD]GiONRGyN NO|QE|] V]HUYH]HWHLWO $ N|YHWNH] WiEOi]DWEyO NLROYDVKDWy PHO\HN D]RN D SURJUDPRN DKRO D] 1.3 D JD]GiONRGyN UpV]pUOMHOHQWVIRUUiVRNEL]WRVtWiViWWHUYH]WHD]DGRWWFpOHOpUpVpKH]
NLDODNtWiViQDNWiPRJDWiVD
+8/,,7HUPpNGtMDV
/RJLV]WLNDL.|]SRQWIHMOHV]WpV
.g=,,.|]~WLIXYDUR]yN
WHUHOpVpQHNpUGHNpEHQ
.LHPHOWWHUOHW7HUPpV]HWL
PHJWHUHPWpVH
.LHPHOWWHUOHW.|UQ\H]HW HJpV]VpJJ\IHMOHV]WpVH
(*,(J\HV]DMRVpStWLSDULpV Ki]WDUWiVLJpSHNpVN|]OHNHGpVL HV]N|]|N]DMYL]VJiODWiWYpJ]
ODERUDWyULXPRNIHMOHV]WpVH
EHQpVEHQDJD]GiONRGyNDN|YHWNH]SURJUDPRNDWIRJMiNQiOQDJ\REEDUiQ\EDQILQDQV]tUR]QLD]LQWp]NHGpVLWHUYHNV]HULQW
KDV]QRVtWiVLEHUXKi]iVRN
(1,,$%LRPDVV]D
KDJ\RPiQ\RVWyOHOWpU
IHOKDV]QiOiVD
(1,,%6]LOiUGELRPDVV]D
HQHUJHWLNDLKDV]QRVtWiVLSURJUDP
(1,,&%LRHWDQROSURJUDP
(1,,'1|YpQ\RODM PRWRUKDMWyDQ\DJSURJUDP .g=,9ROiQWiUVDViJRN DXWyEXV]EHV]HU]pVHLQHN WiPRJDWiVD
0LHOWWD]HJ\HVNRQNUpWSURJUDPRNDWD]|QNpQWHVPHJiOODSRGiVRNV]HPSRQWMiEyOPHJYL]V JiOMXNQp]]NPHJKRJ\D]HJ\HVpULQWHWWWHUOHWHNHQKiQ\JD]GiONRGyYDQMHOHQpVD]RNUD PLO\HQNRQFHQWUiOWiJMHOOHP]$N|YHWNH]WiEOi]DWDOHJXWyEELpYLDP&N|GWiUVDV YiOODONR]iVRNUDYRQDWNR]yVWDWLV]WLNDLDGDWRNDWPXWDWMDEH
* .HUHVNHGHOHPMDYtWiV
+ 6]iOOiVKHO\V]ROJiOWDWiV
JD]GDViJLV]ROJiOWDWiV
0 2NWDWiV ±
$ YLOODPRVHQHUJLD Ji] Yt]HOOiWiV WHUOHWpQ NLV V]iP~ pV NRQFHQWUiOW D MHOHQOpY SLDFL V]HUHSONV]iPD$KXOODGpNJD]GiONRGiVDPHO\HWD]HJ\pEN|]|VVpJLV]HPpO\LV]ROJiOWDWiV VRUD WDUWDOPD] WRYiEEL DGDWRNDW LJpQ\HOW (J\ HV ,.,0 NLDGYiQ\ D KXOODGpN NHUHVNHGHOHPPHOLOOHWYHDKXOODGpNEyOW|UWpQQ\HUVDQ\DJYLVV]DQ\HUpVpYHOIRJODONR]yWiUVDV YiOODONR]iVRNV]iPiWUDLOOHWYHUHWHKiW|VV]HVVpJpEHQYDODPLYHODWPHJKDODGyUD WHV]L $ V]iOOtWiV iJD]DWEDQ P&N|G YiOODONR]iVRN V]iPD MHOHQWV H]HN N|]O V]iPRV DODFVRQ\OpWV]iP~tJ\D]iJD]DWUDDNRQFHQWUiFLyDODFVRQ\IRNDMHOOHP]
$ N|UQ\H]HWYpGHOPL SURJUDPRN N|]O D N|YHWNH]NEHQ LVPHUWHWHWWHN PXWDWQDN MHOHQWV JD]GiONRGyL IRUUiV EHYRQiViW pV tJ\ HEEO D V]HPSRQWEyO SRWHQFLiOLVDQ D] |QNpQWHV PHJiOODSRGiVRNSUHIHUiOWWHUOHWHLOHKHWQHN
$QHKp]I&WRODMIHOGROJR]iVLSURMHNWEHQDJD]GiONRGyLV]IpUDEDQD02/5WWMHOHQWL DPHO\SURMHNWUHDFpJYH]HWpVLVHOIRJDGWDDPHJYDOyVtWiVWtJ\D],QWp]NHGpVL7HUYYpJUHKDMWi ViKR]WRYiEELV]DEiO\R]yLPHFKDQL]PXVUDYDOyV]tQ&VtWKHWHQQLQFVV]NVpJ
$ KiURP KXOODGpNJD]GiONRGiVVDO NDSFVRODWRV SURMHNWHNEHQ D JD]GiONRGyL UpV]YpWHO DUiQ\iW N|]|WW WHUYH]WpN UH pV D N|YHWNH] NpW pYEHQ LV V]HUHSHO NpW KXOODGpNNDO NDSFVRODWRVSURMHNWFVRPDJDPHO\G|QWHQJD]GiONRGyLILQDQV]tUR]iVRQNHUHV]WOYDOyVXOQDN PHJ (EEO D NRUV]HU& UHJLRQiOLV WHOHSOpVL KXOODGpN pJHW P&YHN NLDODNtWiVD LOOHWYH D WHUPpNGtMDV WHUPpNHNEO NHOHWNH] KXOODGpNRN EHJ\&MWpVH pV KDV]QRVtWiVD SURMHNWHNQpO V]iPtWDQDNPLOOLiUGRVQDJ\ViJUHQG& JD]GiONRGyLUpV]YpWHOUH(]HNDWHUOHWHNDQHP]HWN|]L SpOGiN DODSMiQ LV WLSLNXVDQ D]RN N|]p V]iPtWDQDN DKRO D N|UQ\H]HWL WHOMHVtWPpQ\HN HOVHJtWpVpUHV]pOHVN|UEHQDONDOPD]]iND]|QNpQWHVPHJiOODSRGiVRNDW
$ NpWHQHUJLDWHUPHOpVVHO NDSFVRODWRV pYL FpO HVHWpQ V]LQWH NL]iUyODJ D PDJiQIRUUiVRN EHYRQiViUDV]iPtWRWWDWHUY(QQHNHJ\LNHPiUPHJLVYDOyVXOWD0iWUDLHUP&NpQWHOHQtWMH DPLUpV]EHQHJ\|QNpQWHVPHJiOODSRGiVQDNIHOIRJKDWyPHFKDQL]PXVHUHGPpQ\HLV(QQHND IRO\DPDWQDN D WDSDV]WDODWDLUyO D NpVEELHNEHQ OG UpV]OHWHVHQ LV V]y OHV] $ HQHUJLDWDNDUpNRV IRJ\DV]WiVL V]HUNH]HW NLDODNtWiViUD XJ\DQ D] DGRWW pYEHQ QHP WHUYH]WHN MHOHQWV PDJiQIRUUiVRNDW GH HJ\pE LQIRUPiFLyIRUUiVRNWyO (QHUJLD .|]SRQW .KW NDSRWW DGDWRNV]HULQWLWWLVMHOHQWVPDJiQEHUXKi]iVRNIRO\QDN0LYHOH]DQHP]HWN|]LWDSDV]WDODWRN DODSMiQMHOHQWVWHUOHWpWNpSYLVHOLD]|QNpQWHVPHJiOODSRGiVRNDONDOPD]iViQDNtJ\H]]HOLV
IRJODONR]XQN D UpV]OHWHVHEE HOHP]pVEHQ $ HV ELRPDVV]D pV ELRGt]HO SURMHNWHN PHJYDOyVtWiViKR] QDJ\RQ DPEtFLy]XV PDJiQIRUUiV EHYRQiVVDO V]iPROQDN $ SURJUDP ILQDQV]tUR]iVL PHFKDQL]PXViUyO MHOHQOHJ QHP iOO UHQGHONH]pVQNUH LQIRUPiFLy D NXWDWiV WRYiEEL IRO\WDWiViEDQ IHOPpUMN KRJ\ PLO\HQ PpUWpNEHQ MiWV]KDW V]HUHSHW |QNpQWHV PHJiOODSRGiVDILQDQV]tUR]iVEL]WRVtWiViEDQDNLW&]|WWFpORNHOpUpVpEHQ
$ N|]OHNHGpV V]iOOtWiV NRUV]HU&VtWpVpYHO NDSFVRODWRV FpORN WHOMHVtWpVpKH] LV D WHUYH]HWW PDJiQIRUUiVRNMHOHQWLNDGRPLQiQVILQDQV]tUR]iVW$WHUOHWHQD]RQEDQDNRQFHQWUiFLyDQQ\LUD DODFVRQ\ pV D IXYDUR]y V]HUYH]HWHN V]iPD SHGLJ RO\DQ PDJDV KRJ\ D] |QNpQWHV PHJiOODSRGiVRN DONDOPD]KDWyViJD IHOWpWHOHLQHN SRQWRVtWiViW FVDN D NXWDWiV HJ\ NpVEEL Ii]LViEDQMDYDVROMXN$NXWDWiVWRYiEELV]DNDV]iEDQIRJMXNPHJYL]VJiOQLPLO\HQHOQ\|NNHO pVKiWUiQ\RNNDOMiUDMHOHQOHJDWHUYH]pViOWDON|YHWHWWPHJROGiVDPHO\V]HULQWHJ\HJ\MREEDQ N|UOKDWiUROWFVRSRUWUDV]&NtWLNOHDSURJUDPRNEDQUpV]WYHYNN|UpWSO9ROiQWiUVDViJRNUD 1pJ\ RO\DQ V]HNWRUW WXGWXQN MHOHQOHJ H] DODSMiQ NLYiODV]WDQL DPHO\ D W|EELKH] NpSHVW HOHP]pVL V]HPSRQWEyO NLHPHOKHW D] HQHUJLDV]HNWRU D] HKKH] V]RURVDQ NDSFVROyGy HQHUJLDIRJ\DV]WiVDKXOODGpNJD]GiONRGiVYDODPLQWDPH]JD]GDViJ(]XWyEELHVHWEHQQHP YpOHWOHQ KRJ\ D] HOPpOHWL LURGDORP LV QDJ\UpV]W HUUH D WHUOHWUH NRQFHQWUiO $ PH]JD]GDViJEDQ D N|UQ\H]HWNtPpO JD]GiONRGiVL IRUPD HOWHUMHV]WpVpEHQ V]iPRV IHMOHWW RUV]iJEDQ D N|WHOH] HOtUiVRN pV D] |QNpQWHV PHJiOODSRGiVRN PLQWHJ\ YHUVHQ\H]WHN HJ\PiVVDO $ N|UQ\H]HWNtPpO JD]GiONRGiV IHOOHQGtWpVpUH QiOXQN LV V]iPRV SUyEiONR]iV LQGXOW $ JD]GiONRGyN W|UYpQ\L NpQ\V]HUUHO YDJ\ |V]W|Q]pVVHO W|UWpQ RULHQWiOiVD D]RQEDQ PLQGHGGLJ NHYpV HUHGPpQQ\HO MiUW HEEHQ D] LUiQ\EDQ $ V]LJRURGy MRJV]DEiO\RN iOWDO YDOy IHQ\HJHWpV pV D WiPRJDWiV |QNpQWHV PHJiOODSRGiVEDQ W|UWpQ |WY|]pVpUH LWWKRQ LV D WHUPpV]HWN|]HOLJD]GiONRGiVD]HJ\LNOHJtJpUHWHVHEEWHUOHW
(]HNHQ D V]DNWHUOHWHNHQ D] |QNpQWHV PHJiOODSRGiVVDO NDSFVRODWED KR]KDWy HGGLJL WDSDV]WDODWRNUyOYDODPLQWDM|YEHOLOHKHWVpJHNUODWpPiEDQpULQWHWWV]DNpUWNNHONpV]tWHWW LQWHUM~NVHJtWVpJpYHODONRWWXQNUpV]OHWHVHEENpSHW
(VHWWDQXOPiQ\RN
(QHUJLDWHUPHOV]HNWRUD]HUP&YHN|VV]NLERFViWiVLYDODPLQWD]HJ\HV HUP&YHNUHYRQDWNR]yKDWiUpUWpNHLQHNPHJiOODStWiVD
$DV.70UHQGHOHWD]HOVRO\DQV]DEiO\R]iVLFVtUiWMHOHQWLDPDJ\DUN|UQ\H]HWYpGHOPL V]DEiO\R]iVEDQ DPHO\ D N|UQ\H]HWJD]GDViJL HOPpOHWEHQ IRUJDOPD]KDWy V]HQQ\H]pVL MRJNpQW LVPHUW V]DEiO\R]iVL HV]N|] DONDOPD]iViKR] D MRJV]DEiO\L HOtUiVRN P&N|GpVpQHN HOVHJtWpVpEHQWXODMGRQNpSSHQD]|QNpQWHVHV]N|]|NDONDOPD]iViWLVPHJHQJHGL(]HNQHND]
|QNpQWHVHOHPHNQHND]DONDOPD]iViWD]RQEDQHJ\UpV]WDSLDFLV]HUHSONVHPNH]GHPpQ\H]WpN PiVUpV]W D V]DEiO\R]iV PiV HOHPHL PDMG SHGLJ D NpVEE KDWiO\ED OpS V]DEiO\R]iV LV PpUVpNHOWH D] HUHGHWLOHJ HONpS]HOW DONXIRO\DPDW EHLQGXOiViQDN OHKHWVpJpW (]HNQHN D ± VDMQRVUpV]EHQQHJDWtY±WDSDV]WDODWRNQDND]iWWHNLQWpVpWPHJHO]HQDIHQWLMRJV]DEiO\EDQ IRJODOWLQWp]PpQ\HNiWWHNLQWpVpWDGMXNPHJ
(UP&YHN|VV]NLERFViWiVLKDWiUpUWpNHLQHNPHJiOODStWiVDMRJV]DEiO\EDQ
$.70UHQGHOHWEHQV]DEiO\R]RWW|VV]NLERFViWiVLKDWiUpUWpNHNKDWiO\DDOpJV]HQQ\H]
DQ\DJRNN|]ODNpQGLR[LGUDpVDQLWURJpQR[LGRNUDWHUMHGNL$OpJV]HQQ\H]IRUUiVRNN|]O SHGLJDN|YHWNH]NUHYRQDWNR]LN
D V]iOOtWyYDO YDJ\ D V]ROJiOWDWyYDO D WHUPHONDSDFLWiV LJpQ\EHYpWHOpUH YDJ\ D WHUPHOW YLOODPRV HQHUJLD iWYpWHOpUH V]HU]GpVW N|W|WW ± D] pYL ;/9,,, W|UYpQ\ V]HULQWL ±
]HPHOWHWNUH
D0DJ\DU9LOODPRV0&YHN5WVDMiWHUP&YHLUH D]iUDPV]ROJiOWDWyWiUVDViJRNVDMiWHUP&YHLUH
D]|QiOOyV]ROJiOWDWyMRJJDOUHQGHONH]HUP&YHNUHWRYiEEi DVDMiWFpOUDWHUPHO]HPLHUP&YHNUH
$IHOVRUROWHUP&YHNPHJMHO|OWOpJV]HQQ\H] DQ\DJRNEyOV]iUPD]y pYHV|VV]HVNLERFViWiVD QHP KDODGKDWMD PHJ D UHQGHOHWEHQ ± , H , H LOOHWYH , H XWiQL LGV]DNRNUD±PHJKDWiUR]RWWpUWpNHNHW
*D]GiONRGy V]HUYH]HWHN ± D] |VV]NLERFViWiVL KDWiUpUWpNHW NLHOpJtW ± NLERFViWiViQDN PHJiOODStWiVD
$] |VV]HV NLERFViWiVEyO D] HJ\HV JD]GiONRGy V]HUYH]HWHN iOWDO NLERFViWKDWy PHQQ\LVpJHW D .|UQ\H]HWYpGHOPL )IHOJ\HOVpJ D 0DJ\DU (QHUJLD +LYDWDO V]DNYpOHPpQ\pQHN ILJ\HOHPEHYpWHOpYHOKDWiUR]DWEDQiOODStWMDPHJ
.LERFViWKDWyPHQQ\LVpJHNHJ\PiVN|]|WWLiWHQJHGpVH
$ )IHOJ\HOVpJ iOWDO PHJiOODStWRWW NLERFViWKDWy PHQQ\LVpJHNHW D JD]GiONRGy V]HUYH]HWHN HJ\PiV N|]|WW UpV]EHQ YDJ\ HJpV]pEHQ ± D )IHOJ\HOVpJ MyYiKDJ\iViYDO ± iWHQJHGKHWLN
~J\ KRJ\ VHP D] |VV]NLERFViWiVL VHP D] DGRWW WHUOHWHQ pUYpQ\HV WHUOHWL NLERFViWiVL KDWiUpUWpNQHPOpSKHWW~O
$KDWiUpUWpNHNEHWDUWiViYDONDSFVRODWRVUHQGHONH]pVHN
$] |VV]NLERFViWiVL KDWiUpUWpN QHP OpSKHW W~O ~M W]HOEHUHQGH]pV OpWHVtWpVpKH]
N|UQ\H]HWYpGHOPL HQJHGpO\ NL]iUyODJ D]RQRV OpJV]HQQ\H]DQ\DJPHQQ\LVpJ FV|NNHQWpVH HVHWpQ DGKDWy 5HQGNtYOL LGMiUiV HVHWpQ D N|UQ\H]HWYpGHOPL PLQLV]WHU D] LSDUL IHODGDWRN HOOiWiVipUWIHOHOVPLQLV]WHUNH]GHPpQ\H]pVpUHD]pYHVHQJHGpO\H]HWW|VV]NLERFViWiVLpUWpNWO KDWiUR]DWEDQHOWpUpVWHQJHGpO\H]KHW
$] DONDOPD]RWW V]DEiO\R]iVL NRQVWUXNFLy D IRUJDOPD]KDWy NLERFViWiVL HQJHGpO\HN HUV KDWyViJL EHIRO\iV PHOOHWWL YiOWR]DWiQDN WHNLQWKHW $ YpJUHKDMWiV VRUiQ D MRJV]DEiO\L LVPHUWHWEHQOHtUWN|]LJD]JDWiVLV]HU]GpV±LOOHWYHDQQDNKLiQ\D±RNR]WDD]HJ\LNSUREOpPiW
$MHOHQOHJLV]DEiO\RNDODSMiQD]pYHVNLERFViWKDWyPHQQ\LVpJJD]GiONRGyV]HUYH]HWHNN|]|WW PHJRV]WiVDKDWyViJLKDWiUR]DWWDOW|UWpQLN$KDWiUR]DWRWDN|WHOH]HWWPHJWiPDGKDWMDDPLQHN N|YHWNH]WpEHQDPiVRGIRN~PDMGDNiUDN|]LJD]JDWiVLEtUyViJLHOMiUiVOH]iUiViLJDKDWiO\DOi WDUWR]y YDODPHQQ\L V]HUYH]HW NLERFViWiVL N|YHWHOPpQ\H EL]RQ\WDODQQi YiOLN $ SUREOpPD PHJHO]pVpUH DONDOPDV PHJROGiVW MHOHQWHQH D] pULQWHWW JD]GiONRGy V]HUYH]HWHN PHJiOODSRGiViUD DODSR]RWW KDWyViJL KDWiUR]DWKR]DWDO $ PHJiOODSRGiV FpOV]HU& IRUPiMD D N|]LJD]JDWiVL V]HU]GpV OHQQH DPHO\UH YRQDWNR]y iOWDOiQRV V]DEiO\RNDW YLV]RQW D KDWiO\RV PDJ\DU V]DEiO\R]iV QHP WDUWDOPD] $ PHJiOODSRGiV DONDOPD]iViW ± DEEDQ D] pUWHOHPEHQ KRJ\DKDWyViJLKDWiUR]DWD]|VV]HVpULQWHWWJD]GiONRGyWiWIRJyHJ\H]WHWpVHQPDMGDWHUYH]HWW KDWiUR]DWPLQGHQNL iOWDOLHOIRJDGiViQ DODSXOMRQ ± D MRJV]DEiO\LHOtUiVRN QHP ]iUMiN NL GH QHP LV WHV]LN N|WHOH]Yp (J\ LO\HQ IRO\DPDWUD OHKHWVpJHW NHUHWHW EL]WRVtWKDW D] KRJ\ D
)IHOJ\HOVpJQHN D 0DJ\DU (QHUJLD +LYDWDO V]DNYpOHPpQ\pQHN ILJ\HOHPEHYpWHOpYHO NHOO KDWiUR]QLDVDV]DNYpOHPpQ\DODSR]yGKDWD]pULQWHWWHNPHJiOODSRGiViUD
$] HQJHGpO\HN V]pWRV]WiVD D KDWiO\EDOpSpVW N|YHW HOV NpW pYUH PpJ YLV]RQ\ODJ HJ\V]HU&
YROWPLYHODWpQ\OHJHV|VV]NLERFViWiVpVD]HOtUW|VV]KDWiUpUWpNN|]HOtWOHJPHJHJ\H]HWW$]
|VV]NLERFViWiVL KDWiUpUWpN IRNR]DWRV V]LJRURGiVD PLDWW D pV D pY N|]|WW D NpQGLR[LGEyONLERFViWKDWyPHQQ\LVpJNDODQLWURJpQR[LGRNEyONLERFViWKDWySHGLJ NDONHOOKRJ\FV|NNHQMHQXJ\DQDNNRUIHOWpWHOH]KHW OHWWYROQDKRJ\HEEHQD]LGV]DNEDQD NHUHWV]&NtWpVRNR]WDNRQIOLNWXVRNDWD]HUP&YHNN|]|WWL|QNpQWHVPHJiOODSRGiVRNROGMiNIHO DPHO\HNN|]JD]GDViJLODJPHJIHOHOWHNYROQDDNLERFViWiVLUpV]NYyWiNIRUJDOPD]iViQDN
$] HQJHGpO\HN pULQWHWWHN N|]|WWL iWFVRSRUWRVtWiVD |VV]HVVpJpEHQ D NYyWiN V]&NtWpVH WHKiW D IRUJDOPD]KDWyNLERFViWiVLHQJHGpO\HNOpQ\HJpWMHOHQWJD]GDViJRVViJLPHJIRQWROiVRNDODSMiQ W|UWpQKHWQpQHN H]HQ PHJIRQWROiVRN D V]pWRV]WiVQiO VHP NL]iUWDN D PHJiOODSRGiV NLDODNt WiViQiOpUYpQ\HVOKHWQHND)IHOJ\HOVpJHOOHQU]V]HUHSHSHGLJDWHUOHWLOHYHJPLQVpJL N|YHWHOPpQ\HNPHJVpUWpVpQHNHONHUOpVHPLDWWPLQGHQNpSSHQLQGRNROW
$]HJ\HVHUP&YHNUHMXWyNLERFViWiVHUHGHWLOHRV]WiVDEHQPHJW|UWpQW$OHRV]WiVHOV YiOWR]DWiQDN NLDODNtWiViQiO D] |VV]HV HUP& D .|UQ\H]HW pV 7HUPpV]HWYpGHOPL )IHOJ\H OVpJpVD]0DJ\DU(QHUJLD+LYDWDONpSYLVHOLYROWDNMHOHQ$0DJ\DU(QHUJLD+LYDWDOWyOpVD )IHOJ\HOVpJWO NDSRWW LQIRUPiFLyN V]HULQW HQQpO D OHRV]WiVQiO DODSYHWHQ D] DGGLJL NLERFViWiVRN DUiQ\iEDQ NDSWiN PHJD] HJ\HV HUP&YHND MRJRNDW pV D] HJ\WWHV WiUJ\DOiVW N|YHWHQ D] HJ\HGL NYyWiN PiU FVDN NLVPpUWpNEHQ PyGRVXOWDN D JD]GiONRGyN ~MDEE WiUJ\DOiVRVEHYRQiVDQpONO
$ FV|NNHQ |VV]NLERFViWiVL NYyWiN WRYiEEL OHRV]WiViQiO W|EEIpOH V]FHQiULy LV HONpS]HOKHW YROW/HKHWHWWYROQDHJ\VpJHVHQDUiQ\RVDQFV|NNHQWHQLDUHQGHONH]pVUHiOOyNYyWiNDWYDJ\
HVHWOHJ ILJ\HOHPEH OHKHWHWW YROQD YHQQL D V]HQQ\H]pVHOKiUtWiVL N|OWVpJHNEHQ PHJOpY NO|QEVpJHNHWpVGLIIHUHQFLiOWDQFV|NNHQWHQLDNYyWiNDW$NYyWDDGiVYpWHOLNRUUHNFLyNDWHOV HVHWEHQYiUKDWyDQD]HUP&YHNPDJXNYpJH]QpNDPiVRGLNHVHWEHQHQQHNLJ\HNV]LNÄHOpEH PHQQL´ D KDWyViJ $] HOV JRQGRODWPHQHW DODSMiQ NHOOHWW YROQD HOPpOHWLOHJ PDJXN N|]|WW PHJRV]WDQLDNYyWiNDWD]HUP&YHNQHNDNNRULVKDDKDWyViJFVDND]|VV]NYyWiWFV|NNHQWLpV HNLVHEENHUHWHWD]HUP&YHNQHNNHOOHWWYROQDHJ\PiVN|]|WWHORV]WDQL1\LOYiQDKROROFVyEE
OHWW YROQD RWW W|EE FV|NNHQWpVW YiOODOW YROQD D] HUP& D FVDN N|OWVpJHVHEEHQ FV|NNHQWHQL NpSHVHUP&YHNiOWDOIL]HWHWWNRPSHQ]iFLyPHOOHWW
-HOHQOHJ D]RQEDQ ~J\ pUWpNHOKHW KRJ\ D] |QNpQWHV PHJiOODSRGiVRN DONDOPD]iViQDN IHQWL YiOWR]DWDL DOyO WXODMGRQNpSSHQ PiU D .70 UHQGHOHW WRYiEEL N|YHWHOPpQ\HNpQW PHJMHOHQ WHFKQROyJLDL V]DEiO\R]iV LV ÄNLK~]WD D WDODMW´ $ UHQGHOHW EHNH]GpVH YDODPLQW PHOOpNOHWHL XJ\DQLV HOtUWiN D]RNDW D WHFKQROyJLDL KDWiUpUWpNHNHW LV DPHO\HNHW D P&N|G HUP&YHNQHN±QHPWHOMHVtWpVHVHWpQDOHiOOtWiVV]DQNFLyMiYDO±MDQXiUUHWHOMHVtWHQLN NHOO (]HN D WHFKQROyJLDL KDWiUpUWpNHN SHGLJ PHO\HNHW D V]DEiO\R]iV D] (8 KDUPRQL]iFLy NHUHWpEHQYHWWiWMyYDOV]LJRU~EEDNPLQWDPLDFV|NNHQ|VV]NYyWDEHWDUWiWiViKR]V]NVpJHV
$NpWIDMWDV]DEiO\R]iVWHKiW~J\IHGiWHJ\PiVVDOKRJ\±UH±D]|VV]NLERFViWiVLNYyWD EHWDUWiViQDNDUpV]NYyWiNOHRV]WiViQDNQHPPDUDGMHOHQWVpJH
$ WHFKQROyJLDL KDWiUpUWpN GRPLQDQFLiMD D OHJMREEDQ D V]pQW]HOpV& HUP&YHNQpO pU]pNHOWHWKHW PtJ D NYyWiN DUiQ\RV FV|NNHQpVpEO FVDN NLERFViWiV FV|NNHQWpVL N|YHWHOPpQ\DGyGQDDWHFKQROyJLDLKDWiUpUWpNN|YHWHOPpQ\HV]HULQWDMHOOHP]0:
HUP&YLNDWHJyULiEDQPJP62NLERFViWiVLV]LQWHWNHOOHOpUQLDMHOHQOHJL PJPUO GH YDQ RO\DQ HUP& DKRO H] D] pUWpN PJP N|UOL 1HP MHOHQW N|QQ\HEEVpJHW D] D WHFKQROyJLD HOtUiV VHP KRJ\ KD D KD]DL V]HQHN MHOOHP]L PLDWW H] D KDWiUpUWpN QHP WDUWKDWy HOpJ ± HEEHQ D NDWHJyULiEDQ ± D RV NpQWHOHQtWpVL DUiQ\ $ WHFKQROyJLDN|YHWHOPpQ\WHKiWOpQ\HJpEHQNpWV]HURO\DQV]LJRU~PLQWDPLPHJiOODSRGiVRV JD]GDViJL V]DEiO\R]iVEyO DGyGLN 7HUPpV]HWHVHQ D EL]RQ\tWiVKR] KR]]iWDUWR]LN DQQDN ILJ\HOHPEHYpWHOH KRJ\ D V]pQW]HOpV& HUP&YHNEO V]iUPD]y 62NLERFViWiV WHV]L NL D V]HNWRU MHOHQOHJL |VV]NLERFViWiViQDN PLQWHJ\ iW D]D] H]HNQpO D] HUP&YHNQpO D WHFKQROyJLDL KDWiUpUWpN HOpUpVpYHO IHOV]DEDGXOy NYyWiQDN QHP OHV] ÄSLDFD´ UpV]EHQ PHUW D
&+W]HOpV& HUP&YHNWHFKQROyJLDKDWiUpUWpNHLLVV]LJRU~DNUpV]EHQPHUWQHPOpWHVODQQ\L
~MHUP&DPLDW|EEOHWHWÄIHOYHQQp´7|EEV]pQW]HOpV&HUP&QpODJD]GiONRGyWXODMGRQRV D V]LJRU~ WHFKQROyJLD KDWiUpUWpN pV D WO DEV]RO~W V]LJRU~ OHiOOtWiVL V]DQNFLy PLDWW N|]WXGRWWDQ D EH]iUiVW WHUYH]L YL]VJiODWXQN V]HPSRQWMiEyO H] XJ\DQ~J\ D PHJiOODSRGiVRV V]DEiO\R]iVHOMHOHQWpNWHOHQHGpVpWPXWDWMD
)HOPHUOPLQGD]RQiOWDOKRJ\DpYLNYyWDV]LJRUtWiVQDNPpJOHKHWQHJ\DNRUODWLV]HUHSH DPHJiOODSRGiVRNOHKHWVpJpUHKDQHPLVW|EEGHOHJDOiEEKiURPpYUH,WWD]RQEDQHJ\~MDEE
V]DEiO\R]iVPyGRVXOiV PHJLQW FVDN KDVRQOy KDWiVVDO MiU PLQW D V]LJRU~ WHFKQROyJLDL KDWiUpUWpNHNHOtUiVD$]HOHP]pVKH]D]WNHOOILJ\HOHPEHYHQQLKRJ\D.70UHQGHOHW DPHJOpY HUP&YHNUHKDWiO\EDQKDJ\WD D OHYHJPLQVpJYpGHOPL EtUViJRNDW DPHO\HN PiU WO D V]LJRU~ WHFKQROyJLDL KDWiUpUWpN I|O|WW NLERFViWRWW V]DEiO\R]RWW OpJV]HQQ\H]
DQ\DJRNDW SO D] 62 W|EEOHWNLERFViWiVW V~MWMiN (]HN D EtUViJPpUWpNHN D]RQEDQ UHODWtYH DODFVRQ\DN YROWDN H] LGiLJ XJ\DQLV ± D EtUViJNXOFVRW WHNLQWYH ± QHP YiOWR]WDN yWD PpUWpNNHW PpJ D 2.7+ UHQGHONH]pV iOODStWRWWD PHJ (] D EtUViJWHKHU HGGLJ HOYLVHOKHWQHN W&QW D] HUP&YHN V]iPiUD PiU FVDN D]pUW LV PHUW D] iUV]DEiO\R]iV H]W HOLVPHUWHN|OWVpJHLNN|]|WW)RUGXODWN|YHWNH]LNEHD]RQEDQDOHYHJYpGHOPpYHONDSFVRODWRV HJ\HV V]DEiO\RNUyO V]yOy .RUPiQ\UHQGHOHW KDWiO\ED OpSpVpYHO DPHO\ D EtUViJNXOFVRNDWWOGUDV]WLNXVDQPHJHPHOL(]DQ|YHNHGpVW|EEPLQWHJ\QDJ\ViJUHQGHW MHOHQWpVUDPDMGUHpVUHDEtUViJNXOFVpYHQWHWRYiEEGXSOi]yGLN+DWHKiW XWiQ D EtUViJQ|YHNHGpV KDWiViW ± NO|Q|VHQ D V]pQW]HOpV& HUP&YHN HVHWpEHQ ± D]
iUV]DEiO\R]iV QHP OHV] NpSHV ÄVHPOHJHVtWHQL´ D JD]GiONRGyN V]iPiUD DPL HJ\pENpQW N|UQ\H]HWYpGHOPL V]HPSRQWEyO QHP LV OHQQH NtYiQDWRV ± D EtUViJV]LJRURGiV KDWiVD PiU D N|]WLLGV]DNEDQÄIHOOYH]pUOL´DPHJiOODSRGiVRVNYyWDOHRV]WiVOHKHWVpJHVKDWiViW
$]D]HJ\PiVLNV]DEiO\R]yHOHPP&N|GpVEHOpSpVHPHJLQWFVDNYiUKDWyDQHOMHOHQWpNWHOHQtWL D]|QNpQWHVPHJiOODSRGiVRNLOOHWYHIRUJDOPD]KDWyHQJHGpO\HNSRWHQFLiOLVV]HUHSpW
0LQGNpW WHNLQWHWEHQ MyO pU]pNHOKHW KRJ\ D V]DEiO\R]iV HJ\IHOO XJ\DQ PHJWHUHPWHWWH D]
|QNpQWHV PHJiOODSRGiVRN OHKHWVpJpW OHJDOiEELV WDUWDOPLODJ HONpV]tW MHOOHJJHO PiVIHOO D]RQEDQpSSHQKRJ\pUYpQ\HVtWHWWHD]WDÄIHQ\HJHWpVW´DPLQHNNLYiOWiVDPHJHO]pVHHOYLOHJ D]|QNpQWHVPHJiOODSRGiVRNI PRWLYiOyHUHMHOHQQHGH±DPHJiOODSRGiVOpWUHM|WWHHVHWpQ±
QHPW|EE
9pJO PpJ HJ\ WpQ\H] LV HOOHKHWHWOHQtWHWWH D N|UQ\H]HWJD]GDViJL ORJLNiM~ PHJiOODSRGiVRN DONDOPD]iViWHEEHQDN|UEHQ$0iWUDL(UP&5WXJ\DQLVPLQWHJ\PHJHO]YHDV]DEiO\R]iVW ILUVW PRYHU WXODMGRQNpSSHQ GHWHUPLQiOWD D WRYiEEL NYyWDOHRV]WiVW (J\ 090PHO N|W|WW PHJiOODSRGiV DODSMiQ D] HUP& OHJQDJ\REE EORNNMDLQiO RO\DQ NpQWHOHQtW EHUHQGH]pVEH UXKi]RWWEH.$&WiPRJDWiVVDODPHOO\HOMHOHQWVPpUWpN&62NLERFViWiVFV|NNHQWpVWpUWHO (FV|NNHQWpVRO\DQPpUWpN& OHKHW KD D] HUP& EORNNMDLWNDSFVROMiN EH D URVV]DEEIDMODJRV 62 NLERFViWiV~ HUP&YHN KHO\HWW KRJ\ H]iOWDO 0DJ\DURUV]iJ WHOMHVtWHQL WXGMD D LJ D V]LJRURGy QHP]HWN|]L YiOODOiVDLW $ UH YRQDWNR]y OHRV]WiV tJ\ D]W MHOHQWHWWH KRJ\ D
0iWUDL(UP&QHNMHOHQWVHQFV|NNHQWHWWpNDNYyWiMiWDNNRUPpJDEORNNRNFVDND]pYHJ\
UpV]pEHQ P&N|GWHN D V]&UYHO D W|EEL HUP&pW SHGLJ DQQ\LYDO NLV PpUWpNEHQ KRJ\
WHOMHVOM|Q D] RUV]iJRV NYyWD $ N|YHWNH] pYHNEHQ D EHNDSFVROiV LGWDUWDPiQDN HPOtWHWW YiOWR]WDWiViYDODPHJiOODStWRWWNHUHWHQEHOOPDUDGKDWD]RUV]iJ62NLERFViWiVD
(]]HOD]RQEDQDV]DEiO\R]yYiODV]WiVLOHKHWVpJHMHOHQWVHQFV|NNHQW$0iWUDLHUP&V]&U EHUXKi]iVL N|OWVpJHLW HOLVPHUWH D] iUV]DEiO\R]iV D N|OWVpJHN N|]|WW $ W|EEL V]pQW]HOpV&
LOOHWYH SDNXUDW]HOpV& HUP& LV KDVRQOy ÄVDMiW´ PHJROGiVW V]HUHWQH D]RQEDQ H]HNQpO H] D WHUPHOLiUDNMHOHQWVQ|YHNHGpVpWRNR]QiDPLWD0DJ\DU(QHUJLDKLYDWDOHODNDUNHUOQL(]D KHO\]HWXJ\DQDNNRUD]WMHOHQWLKRJ\D0iWUDL(UP&YHWDM|YEHQKRVV]DEELGWDUWDPPDONHOO EHNDSFVROQL KD D NYyWiW WHOMHVtWHQL DNDUMXN pV tJ\ D W|EEL HUP&WiUVDViJ W|EEp NHYpVEp LQGRNROWDQÄQHJDWtY´PHJNO|QE|]WHWpVWpU]pNHO
0LQGH] UiPXWDW DUUD LV KRJ\ D] HUP&YHN QHP D NLERFViWiVFV|NNHQWpV N|OWVpJHLQHN D PLQLPDOL]iOiViWSUyEiOWiNPHJHOpUQLHJ\PiVN|]|WWLPHJHJ\H]pVVHOKDQHPLQNiEEDQDJ\REE pV EL]WRVDEE SLDFL SR]tFLy PHJV]HU]pVpUH W|UHNHGWHN D N|UQ\H]HWYpGHOPL V]DEiO\R]iV EHOV IHV]OWVpJHLWLOOHWYHD]iUV]DEiO\R]iVVDOYDOyIHV]OWVpJHLWLVNLKDV]QiOYD
$ IHQWLHN LVPHUHWpEHQ PHJiOODStWKDWMXN KRJ\ D .70 UHQGHOHWEHQ PHJMHOHQW V]DEiO\R]iVL HOHP DPHO\HW UpV]EHQ D] HUP&YHN HJ\PiV N|]|WWL D KDWyViJ iOWDO MyYiKDJ\DQGy |QNpQWHV PHJiOODSRGiViQDN HOVHJtWpVpUH GROJR]WDN NL WXODMGRQNpSSHQ QHP WXGMD YiUKDWyDQ QHP WXGMD EHW|OWHQL H]W D IXQNFLyMiW .|UQ\H]HWL V]HPSRQWEyO NpWVpJNtYO MHOHQWV HUHGPpQ\WpUW HO IRJ HOpUQL HJ\ KHWHURJpQ V]DEiO\R]iV H]W D]RQEDQ QHP NpSHV D NRUiEELQiO SLDFNRQIRUPDEE D KDWpNRQ\ViJRW HOYLOHJ N|QQ\HEEHQ JDUDQWiOy HV]N|]]HO PHJYDOyVtWDQL
$]HQHUJLDIRJ\DV]WiVFV|NNHQWpVpWFpO]yHV]N|]|N
$ IRJ\DV]WiVL ROGDORQ W|UWpQ |QNpQWHV V]DEiO\R]iV KRVV]DEE P~OWUD WHNLQW YLVV]D PLQW D WHUPHOL ROGDORQ ,WW D PHJOpY N|WHOH] HOtUiVRNRQ SO D] ~MRQQDQ pSOW ODNypSOHWHN KV]LJHWHOpVL N|YHWHOPpQ\HL W~OPHQHQ D] HOpUKHW PHJWDNDUtWiVRN Q|YHOpVpW SO D PiU NRUiEEDQpStWHWWpSOHWHNUHKDJ\RPiQ\RVDQDWiPRJDWiVRN|V]W|Q]HUHMpYHOSUyEiOWiNHOpUQL
$] HOV SUyEiONR]iVRN DODSYHWHQ NOI|OGL ILQDQV]tUR]iV NHUHWpEHQ IRO\WDN SO QpPHW V]pQVHJpO\EO YDJ\ MDSiQ ILQDQV]tUR]iV NHUHWpEHQ WO WHOMHV HJpV]pEHQ PDJ\DU
ILQDQV]tUR]iV~WiPRJDWiVRNNHUHWpEHQLVLQGtWRWWDNHQHUJLDWDNDUpNRVViJLSURJUDPRW(]HNHWD WiPRJDWiVRNKDWpNRQ\ViJDV]HPSRQWMiEyOpUGHPHVU|YLGHQPHJYL]VJiOQLPLYHODWiPRJDWiV±
DKRJ\DQDUpV]EHQHOYLV]LQWHQMHOH]WN±D]|QNpQWHVPHJiOODSRGiVRNDONDOPD]KDWyViJiQDN HJ\LNHOVHJtWWpQ\H]MHOHKHWVWDPHJiOODSRGiVRVV]DEiO\R]iVFVtUiLWLVNpSH]KHWLND]RND WiPRJDWiVLNRQVWUXNFLyNDPHO\HNHJ\MyOEHKDWiUROKDWyV]DNWHUOHWNpSYLVHOLIHOpLUiQ\XOQDN pVDPHO\HNIRNR]DWRVDQWiUVXOKDWQDNDÄIHQ\HJHWHWWVpJ´PRWLYiOyHUHMpYHODNRQVWUXNFLyKR]
FVDWODNR]yNHJ\UHLQNiEEV]HUYH]HWWSiUEHV]pGEHNpQ\V]HUtWpVpYHO
$] HQHUJLDIRJ\DV]WyL ROGDORQ HKKH] pUGHPHV KR]]iWHQQL KRJ\ KD D WiPRJDWiVRN QHP LV N|]YHWOHQODYiOODONR]yNKR]LUiQ\XOQDNGHKDWiVXNDGHPDQGVLGHPDQDJHPHQWHQNHUHV]WO XJ\DQ~J\ HOVHJtWKHWL D N|UQ\H]HWYpGHOPL LJD]JDWiV UpV]YpWHOpUH LV NLWHUMHG |QNpQWHV PHJiOODSRGiVRNPHJV]HUYH]pVpW
$PDJ\DUHQHUJLDWDNDUpNRVViJLSURJUDPNHUHWEHQQpJ\DOSURJUDPLQGXOWDPHO\HNN|]ONHWW HVHWpEHQDODNRVViJLHQHUJLDWDNDUpNRVViJLpVDPHJ~MXOyHQHUJLDIRUUiVRNDOSURJUDPEyOOHKHW RO\DQ N|YHWNH]WHWpVHNHW OHYRQQL DPHO\HN HJ\ V]pOHVHEE N|U& |QNpQWHV PHJiOODSRGiV YpJUHKDMWKDWyViJiUDLVEHIRO\iVVDOOHKHW
$ SURJUDPRN UpV]OHWHV V]DEiO\DLQDN iWWHNLQWpVH U|YLGHQ YL]VJiOMXN PHJ ILQDQV]tUR]iVL V]HPSRQWEyOKRJ\DQtWpOKHWNPHJD]HJ\HVSURJUDPRN
)W GE 0LOOLy
)W 0LOOLy)W GE *MpY WRHpY 0LOOLy
)W pY pY
$PLQW D WiEOi]DWEyO OiWKDWy D WiPRJDWiVVDO pYL *- HQHUJLDPHJWDNDUtWiVW D] (QHUJLDWDND UpNRVViJL3URJUDPNE)WWiPRJDWiVVDODQpPHWV]pQVHJpO\)W EHQWiPRJDWiVVDOWXGRWWHOpUQL$I&WpVNRUV]HU&VtWpVWiPRJDWiVDYROWDOHJKDWpNRQ\DEE )WWiPRJDWiVVDOOHKHWHWW*-pYHVIRJ\DV]WiVWFV|NNHQWHQL
6]iPRWWHY PpUWpN& HQHUJLDPHJWDNDUtWiV LO\HQ WiPRJDWiVL DUiQ\RN PHOOHWW QDJ\PpUWpN&
N|]SRQWLN|OWVpJYHWpVLWHUKHOpVWHUHGPpQ\H]KHWQH$]pULQWHWWV]DNWHUOHWHQD]pUGHNHOWIHOHN V]iPD MHOHQWV pV H]HN UiDGiVXO MHOHQWV V]iP~ KHWHURJpQ FVRSRUWED WDUWR]QDN (]HQ D WHUOHWHQ LV D] RO\DQ IHODGDWRN NRQNUpW PHJKDWiUR]iVD D] HOVGOHJHV DPHO\HN N|OWVpJ KDWpNRQ\DQ FV|NNHQWLN D IRJ\DV]WiVW pV MHOHQWV V]iP~ IRJ\DV]WyUD WHUMHV]WKHW NL $]
N|]SRQWLN|OWVpJYHWpVLWHUKHOpVWHUHGPpQ\H]KHWQH$]pULQWHWWV]DNWHUOHWHQD]pUGHNHOWIHOHN V]iPD MHOHQWV pV H]HN UiDGiVXO MHOHQWV V]iP~ KHWHURJpQ FVRSRUWED WDUWR]QDN (]HQ D WHUOHWHQ LV D] RO\DQ IHODGDWRN NRQNUpW PHJKDWiUR]iVD D] HOVGOHJHV DPHO\HN N|OWVpJ KDWpNRQ\DQ FV|NNHQWLN D IRJ\DV]WiVW pV MHOHQWV V]iP~ IRJ\DV]WyUD WHUMHV]WKHW NL $]