$œ A$$œ$#% ',8,5:

6]ypVV]yOiVPDJ\DUi]DWRN

HPOpNHNEHQV&U&QHOIRUGXOyV]yYpJL7$2SRXGt>@LOOHWYHV]yEHOVHMLiOWDOiEDQYDODPHO\NpS ]WPHJHO]LYHO'|P$G%DEtVD>@$QQDND]RQEDQYDQYDOyV]tQ&VpJHKRJ\DIHQWLV]iUPD ]pNV]DYDNEDQD]LKDQJEDQLVpUH]KHWWHNIXQNFLyW.O|Q|VHQMHOHQWVV]HUHSHWNDSKDWWDNHEEHQDGLUH YpJ]GDODNRNHJ\UpV]WPHUWDGNpS]XWiQD]iWODJRVQiOKRVV]DEELGHLJPHJPDUDGWDWYpJL YRNiOLVPiVUpV]WD]LHJ\DODN~ViJDLVNHGYH]KHWHWWDQQDNKRJ\NpS]QHNpUWpNHOMpN>@$]WLV V]iPtWiVEDNHOOYHQQQNKRJ\LKDQJDODN~EHFp]NpS]V]LQWHPLQGHQQ\HOYEHQOpWH]LNDPL KDQJV]tQpQHNKDQJXODWiQDNIRO\RPiQ\DtJ\DPDJ\DUEDQLVKDQJXODWIHVWMHOOHJHPLDWWYiOKDWRWW NpS]Yp$]HPOtWHWWWpQ\H]NHJ\PiVWHUVtWYHVHJtWKHWWpND]~MNpS]OpWUHM|WWpWHJ\HUHGHWLOHJ IXQNFLyWODQKDQJMHOHQWpVPyGRVtWyWDUWDORPPDOYDOyIHOW|OWpVpYHO´$QpYV]yNpS]pV71\7,,

²7RYiEEiDEHFp]MHOOHJ&U|YLGtWpVHVWRYiEENpS]pVSpOGiLKR]VRUDNR]LNOpQ\HJpEHQD]RQRV LGEHQHJ\PiVLNLNpS]LVPHO\QHNHJ\HWOHQIXQNFLyMDFVDOiGQHYHNOpWUHKR]iVDYROWXR

$]HOEEHPOtWHWWEHFp]NLFVLQ\tWLNpS]WDONDOPD]WDV]iPRVHVHWEHQD]~QMiWV]LV]y NpS]pVNDSFViQDQpSQ\HOY+DYpJLJQp]]N/$&=.Ï*e=$WDQXOPiQ\iQDN-iWV]LV]yNpS]pV1\U

²GHYHUEiOLVLNpS]VDODNXODWDLWW~OQ\RPyV]iPEDQWXODMGRQQpYLSpOGiNDWWDOiOXQN

%RWROL&VHOHFVDOL&VXUJL'|QWL(PHOL VWE J~Q\QpYL YDJ\ FV~IQpYL PHJMHO|OpVVHO XR 7|EEiJEyOIRO\yKDJ\RPiQ\DYROWWHKiWD]LNpS]DONDOPD]iViQDNVHKKH]MiUXOWHJ\~MHOHPD]

~QÄEHV]pOQHYHN´GLYDWMDD;9,,,V]i]DGYpJpQD;,;V]i]DGHOVIHOpEHQ(EHV]pOQHYHND]

DODSV]yN|]V]yLMHOHQWpVpQHNEHVXJiU]iVDUpYpQMHOOHPH]WHNYDJ\EL]RQ\RVNpS]HWHNHWLJ\HNH]WHN HOLGp]QLVtJ\DODNXOWNLNpWVpJNtYODPiUHPOtWHWWPDUDGLV]DYXQN0,.(6<LP6DMiWRVN|]

V]y²WXODMGRQQpYYLV]RQ\W WDOiOXQN WHKiW H]HQ LNpS]V V]DYDN My UpV]pEHQ D PHJOHYLNpS]V N|]V]DYDNPHOOpD]LNpS]VWXODMGRQQpYLIRUPDDQDOyJLDKDWiVDPLQWDDGyV]HUHSHY|+2))0$11

,679È1+HO\QHYHNQ\HOYLHOHP]pVH'HEUHFHQMiUXOWVKR]RWWOpWUH~MQHYHNHW0DUDGL 5iWDUWLPDMGHQHYHNHJ\UpV]HN|]QHYHVOW

.,()(5)(5(1&V]HULQWDVWUXNWXUiOLVV]HPDQWLNiWHOVVRUEDQDWXODMGRQQHYHNN|]QHYHVOpVp QHNSUREOpPiMDpUGHNOLÄpVD]RNQDNDIXQNFLyNQDNDMHOOHP]pVHDPHO\HNHWDWXODMGRQQpYDNO|Q E|]Q\HOYLNRQWH[WXVRNEDQEHW|OWKHW´-HOHQWpVHOPpOHW&RUYLQD%SpQ(J\NRUiEELWD QXOPiQ\RPEDQ7XODMGRQQpYMHOHQWpVVWUXNWXUiOLVV]HPDQWLNDLNHUHWEHQ,Q.RQWUDV]WtYV]HPDQWLNDL NXWDWiVRN6]HUN*(&67$0È6 %S²EHPXWDWWDPKRJ\DQDODNXOKDWDIRUPXWiUVDL HVHWpEHQYLV]RQWHJ\IRUGtWRWWIRO\DPDWILJ\HOKHWPHJD]HJ\NRULLJHDODNHJ\NpS]VHJtWVpJpYHO QpYYp YiOLN PDMG H QpY ² D] LJH HUHGHWL MHOHQWpVpWUL]YH ² HOVHJtWL ~MDEE N|]V]y OpWUHM|WWpW 8J\DQFVDN

DKLYDWNR]RWWWDQXOPiQ\EDQPHJSUyEiOWDPNLPXWDWQLKRJ\D]DNWXiOLVQ\HOYKDV]QiODWEDQN|]QHYHVO WXODMGRQQpYHVHWHQNpQWJUDPPDWLNDLODJLViWPHQHWLIRUPiNNDOMHOOHPH]KHW$PDUDGLpVWiUVDL DODSMiQH]WDPHJiOODStWiVW~J\EYtWKHWMNKRJ\DWXODMGRQQpYHVHWHQNpQW~MVDMiWRVV]yIDMDODNtWy V]HUHSEHQLVUpV]WYiOODOKDW

+(*('%6$77,/$

6 = Ï e 6 6 = Ï / È 6 0 $ * < $ 5 È = $ 7 2 .

9DVNDSX

7$*È1<,.È52/<Ä*\HSpVJ\HSHOYH´FtP&WDQXOPiQ\iEDQH]WROYDVKDWMXN Ä$NNDSXNRQNtYOKHO\QHYHLQNEHQJ\DNUDQHOIRUGXOD9DVNDSXQpYLVPHO\PLQGHQEL]RQQ\DO N|]V]yLVYROWPLWDODWLQªSRUWDIHUUHD©YDJ\ªFODXVWUDIHUUHD©NLIHMH]pVHNLVEL]RQ\tWDQDNGH LO\HQYDVNDSXQWHUPpV]HWHVHQQHPFVDNXJ\DQYDVEyONpV]OWKDQHPFVXSiQHUVHQYpGHWWYDVYDV HUHMpYHOYHWpONHGHUHM&NDSXNDWNHOOpUWHQQN´01\²6]NVpJHVQHNWDUWRWWOiE MHJ\]HWHWLVtUQLKR]]iÄ(QQpOIRJYDDW|EEL9DVMHO]YHOHOOiWRWWKHO\QHYHLQNLVKDFVDNYDOyEDQ YDVEiQ\iV]DWUD QHP XWDOQDN QHYNHW LO\HQ PHJHUVtWHWW KHO\HNQHN N|V]|QKHWLN´ +()7<*<8/$

$1'25QDNPiVDYpOHPpQ\HÄ$]WDKHO\HWDKROD]~WV]LNOiNN|]WYLV]HONDSXQDNQHYH]LN,GH

6]ypVV]yOiVPDJ\DUi]DWRN WDUWR]QDND]HJpV]RUV]iJWHUOHWpQHOIRUGXOy9DVNDSXN´1\)V]PHJ\pW VRUROIHOVH]HNHWPiVRNNDOLVNLOHKHWHJpV]tWHQL3(67<)5,*<(6KHO\QpYWiUiEDQLVWDOiOKDWXQNQp KiQ\UD.|]ONFVDND]RNDWKR]RPDPHO\HNPHOOHWWPDJ\DUi]DWLVYDQ

9iViURVQDPpQ\%HUHJPHJ\HÄ9DVNDSXKDMGDQLRUV]iJ~WNpWKRPRNGRPEN|]|WWDKR PRNI|OGNH]GHWpQ´0,=6(5/$-26 %HUHJPHJ\H3HVW\)ULJ\HVKHO\VpJQpYWiUiEDQ,Q/HYpOWiUL eYN|Q\Y1\tUHJ\Ki]D+RVV]~PH]0iUDPDURVPHJ\HPD&vPSXOXQJOD7LVD Ä9DVNDSXKROUpJHQD]~WpV]DNLUpV]pQD¶7LV]DYL]HIRO\WGpOIHOOHJ\PDJDVKHJ\UHQJHWHJHUG YHOiOORWW¶VPLQWLO\V]RURVKHO\KROD]HOOHQVpJQHPLJHQW|UKHWHWWiW²QHYH]WHWHWWHO9DVNDSX QDN´NLDGiVDODWW6RNNDOUpJHEELDGDWRNLVYDQQDNHUUODKHO\UO Ä LQGH LQWHU SODJDV RULHQWDOHPHWPHULGLRQDOHPHXQGRDQQHFWLWTXHQGDPORFXP9DVNDSXYRFDWXP´0iU'LSO ÄXQGH DG HDQGHP SODJDP DQQHFWLW:DVNDSX DSHOODWXP´ XR (KKH] D N|]]pWHY

$36$,0,+È/<,-È126OiEMHJ\]HWEHQV]NVpJHVQHNOiWMDKR]]iI&]QLDN|YHWNH]NHWÄ9DVNDSX>pQ HPHOWHPNL²0/@KHJ\V]RURV+RVV]~PH]pV6]DUYDVV]yN|]WD7LV]DHOKDJ\RWWPHGUHPHOOHWW UpJHEEHQPHJHUVtWHWWKHO\YROWPLNpSQHPFVDNQHYHPXWDWMDGHD]RQPpO\J|G|ULVPHO\

N|]YHWOHQ N|]HOpEHQ OiWKDWy´ XR 1DJ\IDOX 7LV]D 6]DEROFV PHJ\H Ä9DVNDSX HJ\ KRVV]DQ Q\~Oy¶VFVDNQHPKHJ\HWNpSH]KDORPMHOHQEHQV]OYHOEHOWHWYHQHYpWD¶KDJ\RPiQ\V]HULQW RQQDQYHWWHPLV]HULQWHJ\NRUD¶IHOYLOORQJiVRNYDJ\WDOiQD¶W|U|N¶VQpPHWKDGMiUDWRNDONDOPi YDOD]RQUpV]HQKROMHOHQOHJD¶7RNDM²1\LUHJ\Ki]LRUV]iJ~WUDMWDNHUHV]WOYRQ~OV]LQWpQiWOp YpQPHWV]YHD¶N|]OHNHGpVQHKH]tWpVHLOOHW|OHJPHJJiWOiVDWHNLQWHWpE|OHJ\LNKDGYLVHOIpOiOWDO D¶PiVLNHOOHQiWW|UKHWHWOHQOHOWRUODV]ROYDYDJ\pSHQYDVNDSXYDOHO]iUROYDYyOW´0,=6(5 6]D EROFVPHJ\H3HVW\)ULJ\HVpYLKHO\QpYWiUiEDQ,Q$Q\tUHJ\Ki]L-yVD$QGUiV0~]HXPeY N|Q\YH.RPRU]iQ6]DWPiUPHJ\HPD&PU]DQDÄPHJHPOLWpVWpUGHPHOD¶IDO~

NHOHWLUpV]pQOpYV]yUyV²PHO\YDVNDSXQDNtVQHYH]WHWtNPtYHOWVDNH]HQQD]HJ\KHMHQOHKHW 7DUWRW]URO.yPyU]iQEDQEHKDWROQL¶VPHQQL´0,=6(5 6]DWPiUYiUPHJ\H3HVW\)ULJ\HV² pYLKHO\QpYWiUiEDQ1\tUHJ\Ki]D(UGEpQ\H=HPSOpQPHJ\HÄ9DVNDS~N|YHV iWMiUiVD7iOO\DLKDWiUED´NLDGiVHOWW0DNNRVKRW\ND=HPSOpQPHJ\HÄ9DVNDS~NpWKHJ\N|]|WWL V]RURVViJEDQ ² NHVNHQ\HQ HOQ\~Oy KHO\LVpJ PHO\ LV D¶ V]HPOpO|W EiPXODWUD ELUMD´ +2))0$11

,679È1pV.,67$0È6LVQDJ\MiEyOH]HNHWWDSDV]WDOWD%LKDU PHJ\pEHQ %DJDPpU Ä9DVNDSX NpW KHJ\N|]WLV]RURVKROD]HOOHQVpJHNQHN N|QQ\HQHOOHQH iOKDWWDN´ 3HVW\ )ULJ\HV Np]LUDWRV KHO\

QpYWiUiEyO %LKDU YiUPHJ\H ² 'HEUHFHQ ² 'HEUHFHQ Ä9DV NDS~ ²

$+3iO\L~WEDNpWGRPEN|]WLHONHVNHQ\HGpV´XR1DJ\OpWDÄ9DVNDS~KHJ\KROV]RURV~W YDQNpWV]HNpUQHPWpUKHWHJ\PiVPHOOHWW´XR$)1(6]DGXQDL9DVNDSXNDSFViQPHJ HPOtWLÄ$PDJ\DUKHO\QpYDQ\DJEDQHOIRUGXOy9DVNDSXQHPULWNiQD]HJ\NRULJ\HS&YpGHOHPQHN OHKHWD]HPOpNHDKHJ\V]RURVRNDWiWMiUyNDWHJ\NRUYDOyEDQNDSXYDO]iUWiNHO´(UUHFpO ]RWWpSSHQ02/1È5/$-26DIHQWHEEHPOtWHWW1DJ\IDOXMHJ\]MHEHQ

(GGLJDYDVNDSXUyOPHWDIRULNXVpUWHOHPEHQV]yOWXQNÈPDUUyOLVV]yOQDNDOHtUiVDLQNKRJ\

DYDVEyONpV]OWNDSXPHVWHUVpJHVDNDGiO\WNpSH]HWW0iWpV]DOND6]DWPiUPHJ\HÄ(]HQSXV]WD 6iQGRURQYDQHJ\WiO\~J\QHYH]HWWYDVNDSXQHYpWRQQDQYHWWHKRJ\KDMGDQD9iUNHUWQHNHJpV]

YLGpNHOiSRVSRVYiQ\RVKHO\OpYpQHJ\~WMDYROWFVDNPHO\HQDYiUKR]MXWKDWQLOHKHWHWWH]HQ~WDW HO]iUWDHJ\HU|VYDVNDS~HUU|ODNDS~UyOQHYH]WHWHWWHO¶VWDUWMDPDLV9DVNDS~QHYpWH]HQKHO\´

0,=6(5LP7LV]WDEHUHN6]DWPiUPHJ\HÄ$PLLOOHWLD¶QHYH]HWHVHEEKHO\HNPHJ HPOLWpVpWYDQXJ\DQHJ\IRMyPHO\9DVNDSXQDNQHYH]WHWLN²H]RQQDQHUHGHWWQHNNpS]HOLNYDJ\

LQNiEEiOOtWMiNKRJ\H]HO|WWW|EEV]i]pYHNQHNLVXJ\KLV]LN%DWKRU\IHMHGHOHPDODWW9HUHVVgY

EDUiWRNODNWiNYyOQDDKHO\LVpJHWpVH]HNQHNYyOWHJ\9DVNDSXMRNPHO\HQD¶.ODVWURPEDEHMiUWDN OpJ\HQVH]pUWDPDLQDSLJLVQHYH]WHWLN´XR+DVRQOyUDJRQGROW.È/1È6,È53È'LVD9DVNDSX KHO\QpYHOHP]pVHNDSFViQÄ$QpYHUHGHWLOHJHUVYDVDOWIDOXNDSXNUDYRQDWNR]KDWRWWPD]|P PHO KDWiUUpV]W MHO|O´ 6]DWPiUL KHO\QpYWtSXVRN pV W|UWpQHWL UpWHJ]GpVN 'HEUHFHQ ,O\HQUHD]RQEDQD3(67<IpOHJ\&MWpVEHQQHPDNDGWDP

0,=6(5/$-26