)HOWHYpVHNpVPDJ\DUi]DWRNM YpJ& ÈUSiGNRULWXODMGRQQHYHLQNUO

(1)

. , 6 ( % % . g = / ( 0 e 1 < ( .

$PDJ\DUKDELWtYpVL]DIHWV]HUNH]HWW|UWpQHWLKiWWHUpUO

$ELUWRNYLV]RQ\NpWNLIHMH]pVLPyGMiYDODODNWDQLPHJIRUPiOWViJiYDOpVOpWUHM|WWpQHNOH KHWVpJHVN|UOPpQ\HLYHOIRJODONR]RP$]HJ\LND]~QKDELWtY¶YDODNLQHNYDQYDODPLMH¶DPiVLN DELUWRNRVMHO]VV]HUNH]HW¶YDODNL>QHND@YDODPLMH¶D]HOEELWHOMHVPRQGDWD]XWyEELV]LQWDJPD

$]XUiOLQ\HOYHNEHQNpWV]HUNH]HWWtSXVV]ROJiODELUWRNOiVPRQGDWpUWpN&NLIHMH]pVpUHDD]

DODQ\LIXQNFLyM~ELUWRNV]yDODQ\HVHW&pVDELUWRNRVWMHO|OQpYV]yUHQGV]HULQWYDODPLO\HQHVHWUD JRW NDS D] HVHWUDJ OHKHW YDJ\ JUDPPDWLNDL QRPLQDWLYXVL JHQLWLYXVL YDJ\ GDWLYXVL YDJ\

DGYHUELDOLVLODWLYXVLORFDWLYXVLYDJ\DEODWLYXVLWRYiEEiDELUWRNV]yYDJ\NDSELUWRNRVV]HPpO\MHOHW YDJ\QHPLOOHWYHDPRQGDWEDQYDJ\YDQFRSXODYDJ\QLQFVEDELUWRNV]y¶ELUWRNRO¶MHOHQWpV&LJH WiUJ\LEYtWPpQ\HNpQWiOO(]HNHQEHOOW|EEDOWtSXVLVYDQ(WtSXVRNHJ\LNHVHPNL]iUyODJRVD Q\HOYFVDOiGWDJMDLEDQEiUYDODPHO\LNNUHQGV]HULQWGRPLQiQV1pPHO\ILQQXJRUQ\HOYHNKDELWtY V]HUNH]HWpWV]RPV]pGRVLQGRJHUPiQQ\HOYHNKDVRQOyV]HUNH]HWHLYHOKR]WiN|VV]HIJJpVEH

$SRVVHVVLYYLV]RQ\WELUWRNRVMHO]VV]HUNH]HWIHMH]LNLDPHO\EHQDELUWRNRVMHO]JUDPPD WLNDLRO\NRUDGYHUELDOLVLHVHWEHQQRPLQDWLYXVEDQYDJ\JHQLWLYXVEDQLOOHWYHORFDOLVLFDVXVEDQOp YQpYV]yDELUWRNV]yQYDJ\YDQELUWRNRVV]HPpO\MHOYDJ\QLQFV$]WDV]HUNH]HWHWDPHO\EHQ DELUWRNRVMHO]QHPV]HPpO\HVQpYPiVpVDELUWRNV]yV]HPpO\MHOHWNDSW|EENXWDWyLV±DW|U|N Q\HOYHNKDVRQOyV]HUNH]HWHLQHNPHJQHYH]pVpUHDONDOPD]RWW±ÄL]DIHW´WHUPLQXVWHFKQLFXVV]DOLOOH WL1pPHO\XUiOLQ\HOYHNL]DIHWV]HUNH]HWHLQHNHVHWpEHQHJ\HVNXWDWyNDPDYDJ\HJ\NRUV]RP V]pGRVW|U|NQ\HOYHNKDWiViWYpOWpNIHOIHGH]QL

$]XUiOLQ\HOYHNHJ\LNVDMiWRVViJDKRJ\iOWDOiEDQQHPKDV]QiOQDN¶ELUWRNRO¶LJpWEiU QHPLVPHUHWOHQD]RELXJRUEDQHOpJJpiOWDOiQRV

$$]XUiOLQ\HOYHNEHQDOHJJ\DNRULEEKDELWtYV]HUNH]HWDODWPLKLOLEHUHVW¶QHNHPN|Q\

YHPYDQ¶WtSXV~YDJ\LVDELUWRNOiVW¶YDQ¶LJpYHODELUWRNRVWMHO|OQpYV]yW|EEQ\LUHHVHWUDJRV DODNMiYDO YDJ\ QpYXWyYDO pV D J\DNUDQ ELUWRNRV V]HPpO\UDJJDO HOOiWRWW ELUWRNV]yYDO IHMH]LN NL .O|QEVpJPXWDWNR]LNDEEDQKRJ\DQMHO|OLNPHJDQ\HOYHNDELUWRNRVW$ILQQVpJLDPRUGYLQD FVHUHPLV]pVDV]DPRMpGKDV]QiOMDUHQGV]HUHVHQKDELWtYV]HUNH]HWHNEHQD]XUiOLDODSQ\HOYLQJH QLWLYXV pVYDJ\GDWLYXV IRO\WDWyLW HUUH D FpOUD D PDJ\DU D ODWLYXVL QpYXWyL HUHGHW&QDNQHN GDWLYXVWNH]GWHHODONDOPD]QLHFpOEyODILQQVpJL±DNXUODQGLOtYNLYpWHOpYHO±PiVRGODJRVPHJ ROGiVNpQWD]DOODWLYXVWD]DGHVVLYXVWpVD]DEODWLYXVWDODSSDORFDWLYXVWDSHUPLD]DGHVVLYXVWpV D]DEODWLYXVWDV]HONXSORFDWLYXVLQpYXWyW$ELUWRNV]yDILQQVpJLODSSQ\HOYFVRSRUWEDQVRKDVHP YHV]IHOELUWRNRVV]HPpO\MHOHWPtJDPDJ\DUEDQPLQGLJDW|EELQ\HOYEHQPLQGNpWPHJROGiVOH KHWVpJHV OHJIHOMHEE YDODPHO\LNN GRPLQiQVQDN V]iPtW $] iOOtWPiQ\ OHJW|EEQ\LUH NL YDQ WpYH VRUUHQGL KHO\H D]RQEDQ QLQFV U|J]tWYH PLQGHQ Q\HOYEHQ pV PLQGHQ NRQWH[WXVEDQ ËJ\ D] XUiOL KDELWtYV]HUNH]HWVpPiMDÄ1RPHQ*HQ$GY3RVWS1RPHQ3[¶YDQ¶´

$ KDELWtY pV D ELUWRNRV MHO]V V]HUNH]HW DODNWDQL PHJIRUPiOWViJD URNRQViJRW PXWDW H]pUW EHPXWDWRPWiEOi]DWRVDQPLNpSSHQYDQPHJIRUPiOYDDELUWRNRVHNpWV]HUNH]HWEHQ

DKDELWtYV]HUNH]HWEHQ DELUWRNRVMHO]VV]HUNH]HWEHQ ILQQVpJL OHOHP&HVHWUDJRNJHQLWLYXV JHQLWLYXV

ODSS VWDWLNXVORFDOLVLHVHWHN JHQLWLYXV

PRUGYLQ JHQLWLYXV JHQLWLYXV

$9,,1HP]HWN|]L0DJ\DU1\HOYWXGRPiQ\L.RQJUHVV]XVRQ%XGDSHVWHQDXJXV]WXV iQHOKDQJ]RWWHODGiVNLVVpPyGRVtWRWWV]|YHJH

(2)

FVHUHPLV] JHQLWLYXV QRPLQDWLYXVJHQLWLYXV SHUPL OHOHP&HVHWUDJRNQRPLQDWLYXV OHOHP&HVHWUDJRNQRPLQDWLYXV RELXJRU QRPLQDWLYXVORFDWLYXVQpYXWy QRPLQDWLYXVORFDWLYXV

PDJ\DU GDWLYXV!JHQLWLYXV QRPLQDWLYXVGDWLYXV!JHQLWLYXV pV]DNLV]DPRMpG QRPLQDWLYXVJHQLWLYXV JHQLWLYXV

GpOLV]DPRMpG QRPLQDWLYXVJHQLWLYXVQpYXWy JHQLWLYXV

0HJMHJ\]HPKRJ\DPDJ\DUQDNQHNGDWLYXVLpVJHQLWLYXVLEHVRUROiViWLOOHWHQQLQFV WHOMHVHJ\HWpUWpVDV]DNLURGDORPEDQY|SO.25203$<$QpYV]yUDJR]iV,Q71\W± pV.,()(5 $UDJR]iV,Q6WUXNWXUiOLVPDJ\DUQ\HOYWDQ0RUIROyJLD6]HUN.,()(5)(5(1&%S

±$KDELWtYV]HUNH]HWEHQD]LJHLiOOtWPiQ\RQpVD]DODQ\RQ YDJ\LV D ELUWRNV]yQ NtYO OHJ W|EEQ\LUHMHOHQYDQDELUWRNRVLV+DDELUWRNV]yKR]ELUWRNRVV]HPpO\MHOFVDWODNR]LN±DPLD ILQQVpJL ODSS Q\HOYFVRSRUWWyO HOWHNLQWYH N|]|QVpJHV ± DNNRU D V]HPpO\HV QpYPiVL ELUWRNRVW D ELUWRNRV V]HPpO\MHO NpSYLVHOL pV LO\HQNRU D QpYPiV NLWpWHOH QHP N|WHOH] $] H[SOLFLW PyGRQ NLIHMH]HWW ELUWRNRVDILQQVpJLEHQGDWLYXVUDYLVV]DPHQJHQLWLYXVEDQiOOXJ\DQFVDNDILQQVpJLEHQpVDODSS EDQDELUWRNRVORFDOLVLHVHWEHQYDQDELUWRNV]yQQLQFVV]HPpO\MHOHFVRSRUWRQEHOODNXUODQGLOtY pV DGpOLODSSNLYpWHOWNpSH]QHND]HOEELEHQDELUWRNRVQUDJRWNDSDGpOLODSSEDQJHQLWLYXVUDJRW DYROJDLpVDSHUPLQ\HOYHNEHQDELUWRNV]yQQHPIHOWpWOHQOYDQELUWRNRVV]HPpO\MHOGHDELUWR NRVQDNHNNRUHVHWUDJRVQDNNHOOOHQQLHD]RELXJRUQ\HOYHNDPHO\HNQHNQLQFVJHQLWLYXVXNQRPL QDWLYXVWKDV]QiOQDN

3pOGiNDIHQWLHNUHILPLQXQRQQlONlaPLQXOODRQQlONl¶pKHVYDJ\RN¶PLQXOODRQ ODSVL¶LFKKDEHHLQ.LQG¶OtY.L]QXPWLGU¶GHU0DQQKDWHLQH7RFKWHU¶OS1PDNNiU EHDWQDJDWGXVOHDW"¶PLO\HQNXW\iLGYDQQDN"¶PXVGDWJDOOHDWEXRUHWEHDWQDJDW¶QHNHP EL]RQ\MyNXW\iLPYDQQDN¶PXVWO PDQQD¶LFKKDEHHLQ.LQG¶OS6PXZ>*HQ@PDQD¶LFK KDEHHLQ.LQG¶PGH(DXLVXND]R¶HLQ(U]DQHKDWHLQHQ+XQG¶FVHU>QXQÉQ@LNãÉZÉãWXNH

¶VLHKDEHQNHLQ.LQG¶PÆÆQXNLlXOÉ¶LFKKDEHHLQQHXHV%XFK¶YRWM>PHQDP@Q°OHYDQ

¶LFKKDEHHLQH7RFKWHU¶]UMMRPDO,QSL°VDEX¶GHU=DXEHUHUKDWNHLQHQ6RKQ¶aQ°O,Q HPNXMLP SL¶VLHKDEHQGUHL6|KQH¶RV]WM9MPlZÉDPQWLP¶LFKKDEHNHLQ*HOG¶aPQQÆZ QWLP¶LFKKDEHNHLQ*HOG¶.U$XMSÆWQÆZXW¶PLHKHOOlRQUDKRMDEHLGHP0DQQLVW*HOG¶

YRJ7-QlM£USZOÆV¶GHU.DLVHUKDWWHHLQHQ6RKQ¶SZ£QO¶VLHKDEHQHLQHQ6RKQ¶7k MN£SlOW£Z"SOV¶GLH)UDXKDWWHHLQH7RFKWHU¶¶EHLGHU)UDXZDULKUH7RFKWHU¶:9 PORYDPYDQD]DSiQDNKi]DYDQaD]DSiQDNQLQFVKi]D

%$GDWLYXVELUWRNRVMHO|OIXQNFLyMiQDNVLVpJHPHOOHWWV]yOKRJ\D]XUiOLQ\HOYHNN|]O W|EEHQLVD]GDWLYXVUDJKDV]QiODWRVHV]HUHSEHQLOOHWYH~MDEENRULGDWLYXVUDJRNNDODODNXOWV]HU NH]HWHNLV LVPHUWHN 3O FVHUNXUXNODQ ãÆN XOR ¶D KHJ\QHN iUQ\pND YDQ¶NXNXODQ ãÆ/DÆP

/DOãDWXOR¶DNDNXNNQDNE~]DYHWMHYDQ¶$PDJ\DUEDQLVKDVRQOyDKHO\]HW$GDWLYXVQDN D ELUWRNYLV]RQ\ NLIHMH]pVpUH YDOy DONDOPDVViJiW D PDJ\DU OHJN|]HOHEEL URNRQDL D] RV]WMiN pV D YRJXOLVHJ\pUWHOP&HQLJD]ROMiN(Q\HOYHNEHQDV]HPpO\HVQpYPiVGDWLYXViQDNELUWRNRVQpYPiV NpQWHJ\HVV]iP~ELUWRNHVHWpQYDQV]HUHSHDELUWRNRVMHO|OpVpEHQLJD]QHPDKDELWtYpVQHPDELU WRNRVMHO]VV]HUNH]HWEHQKDQHPiOOtWPiQ\NpQWpVWDOiQEYtWPpQ\NpQWLVPLNpQWDPDJ\DUD]

HQ\pPWLpGVWEELUWRNRVQpYPiVRNQDN3pOGiXOD2V]WMePDQ]P¶QHNHPHQ\pP¶WDPLPD ZXNHP±DQW]PDQ]Pn£WRPR»NURZNDr1HWPR»nE2V]WM.D]QDHQ¶QHNHGWLpG¶áXYHá

¶QHNL|Yp¶WDPáDNLPXMQPXMánÃWDEHONDLOLWYR»LOLHJR"¶F2V]WM.D]PQHP¶QHNHP HQ\pP¶PHZ¶QHNQNPLpQN¶$MSyW°OND"±PQHP±PHZ¶.LQHND]YHJH"±$]HQ\pP

± $ PLpQN¶ G $ YRJXOEDQ XJ\DQFVDN D V]HPpO\HV QpYPiVRN GDWLYXVLODWLYXVL DODNMD V]HUHSHO ELUWRNRVQpYPiVNpQWY|eQÆP¶HQJHPQHNHPHQ\pP¶WDZH¶WQHNL|Yp¶PQPQ¶PLQNHW QHNQNPLpQNGX¶PQDZ¶PLQNHWQHNQNPLpQNSO¶QSÆNnEXPDJDPR»nSLVDW nUX[ÇHHJRnNROÆPnGRPDGYQDZLGYnVOLWPnROHQLQDZLn(]WDV]HUNH]HWHWMyOpU]p

(3)

NHOWHWLDN|YHWNH]GpOLYRJXOSpOGDLV7-lP£QZDNN^{^}LUWNOÆÅN£ãÆP£VRZV¶LFKKDWWHNHLQH /XVWLQGHP%UXQQHQ]XVWHUEHQ¶¶PLUNDP>HLJWOZXUGH@QLFKWPHLQH/XVW]XVWHUEHQ¶$PRQ GDW NpWIpOHNpSSHQ pUWHOPH]KHW DWWyO IJJHQ KRJ\ QRPLQDWLYXVL YDJ\ GDWLYXVL QpYPiV YDQH EHQQH¶QHPYROWpQNHGYHP¶pV¶QHNHPQHPYROWNHGYHP¶

&$PLQWD]HGGLJLHNEONLGHUOWDPDLXUiOLQ\HOYLKDELWtYV]HUNH]HWHNEHQDELUWRNRVJ\DN UDQYDODPLO\HQORFDOLVLHUHGHW&HVHWUDJRWNDSQHPULWNiQGDWLYXVLWDGDWLYXVpVDODWLYXVHJ\HEHN N|]WHJ\HVLQGRJHUPiQQ\HOYHNEHQLVLVPHUWXJ\DQH]DKHO\]HWDELUWRNRVMHO]VV]HUNH]HWHNHVHWpEHQ LV(UHGHWLOHJD]LQGRJHUPiQQ\HOYHNEHQLOOHWYHVNEHQVHPYROW¶ELUWRNRO¶LJHKDQHPDELUWRNRVW MHO|OQpYV]yGDWLYXViYDOpVD¶YDQ¶LJpYHODONRWWiNPHJDKDELWtYV]HUNH]HWHW79*$0.5(/,'=(

r9 9 ,9$129,QGRHYURSHMVNLM »]\N L LQGRHYURSHMF\ 5HNRQVWUXNFL» L LVWRULNR WLSRORJLTHVNLMDQDOL]SUD»]\NDLSURWRNXOÇWXU\7ELOLVL±WRYiEELLURGDORP PDO+DDODWLQEDQDELUWRNYDQKDQJV~O\R]YDDPRQGDWiOOtWPiQ\DD¶YDQ¶LJHYDODPHO\ILQLW DODNMDDELUWRNRVSHGLJGDWLYXVEDQGDWLYXVSRVVHVVLYXViOOSOPLKLOLEHUHVW¶QHNHPN|Q\YHP YDQ¶KDYLV]RQWDELUWRNRVYDQKDQJV~O\R]YDDNNRUDJHQLWLYXVSRVVHVVLYXVKDV]QiODWRVSO SDWULVHVWGRPXV¶D]DSipDKi]¶:,/+(/0+$9(568QWHUVXFKXQJHQ]XU.DVXVV\QWD[GHULQGR JHUPDQLVFKHQ6SUDFKHQ8QWHUVXFKXQJHQ]XULQGRJHUPDQLVFKHQ6SUDFK XQG .XOWXUZLVVHQVFKDIW 6WUDEXUJpVMHJ\]HWV]HULQWH]DÄGDWLYXVV\PSDWKHWLFXV´DPHO\PLQGDKDELWtY PLQGDELUWRNRVMHO]VV]HUNH]HWHNEHQHOIRUGXOHJ\HVLQGRJHUPiQQ\HOYHNEHQDV]DQV]NULWEDQpV D]yJ|U|JEHQDQpYPiVRNUDIOHJDV]HPpO\HVQpYPiVRNUDNRUOiWR]yGLNGHDODWLQQpSQ\HOYEHQ DJHUPiQEDQpVDEDOWLV]OiYQ\HOYHNEHQDIQpYUHLViWWHUMHGWLOOHWYHDURPiQEDQD]DOEiQEDQDERO JiUEDQpVD]~MJ|U|JEHQDJHQLWLYXVpVDGDWLYXVHJ\EHLVHVHWWPLNpQWDPLQ\HOYFVDOiGXQNILQQ VpJLpVYROJDLFVRSRUWMiEDQLV3OQQ\MHULVWHLQ9HWWHU]XPLUZHPVHLQ+XW ¶ZHVVHQ +XW¶

QGHP9DWHUVHLQ6RKQaGHV9DWHUVVHLQ6RKQKOGHYDGHU]LMQ]RRQ¶LG¶DQJVHUYHUWRKLV PDVWHUyDQJKLPRQìHWKHDIRG¶WRKLPRQWKHKHDG RQKLVKHDG¶IUFHOLYUHHVWjPRLOH FKHYDOjPRQSqUHROGHVFULYHUIRQGRDWXWWRO¶XQLYHUVR¶OHtUQLDYLOiJOpQ\HJpW¶RUHPXZHVWÇ OHWGRNWRUHPXRVPRWUHOJRUOROHWWNDVWHYLU"¶NLPLYDQQHNHG"¶7HKiWDILQQXJRUQ\HOYHN EHQWDOiOKDWyGDWLYXVSRVVHVVLYXVQHPV]iPtWHJ\HGLMHOHQVpJQHN

'$GDWLYXVV]DOYDJ\ORFDWLYXVLSUHSR]tFLyVSRV]WSR]tFLyVV]HUNH]HWWHONLIHMH]HWWKDELWtYpV ELUWRNRVMHO]VV]HUNH]HWHUHGHWpYHONDSFVRODWEDQILQQXJRU±LQGRJHUPiQYLV]RQ\ODWEDQHJ\PiVVDO KRPORNHJ\HQHVWHOOHQWpWHVYpOHPpQ\HNOiWWDNQDSYLOiJRWDV]DNLURGDORPEDQH]HNHWLWWPLQGHQ NRPPHQWiUVRURORPIHO

D$OHWWpVD]RURV]V]HUNH]HWW|UWpQHWLKiWWHUpEHQQpPHO\HNILQQXJRUVXEVWUDWXPRWYDJ\

DGVWUDWXPRWVHMWHQHNPiVRNYLV]RQWWDJDGMiNH]WVWYDQDNLIHOWHV]LDNpUGpVWYDMRQDILQQVpJL V]HUNH]HWILPLQXOODRQQHPRURV]HUHGHW&H

E$OtYGDWLYXVIXQNFLyMiWLOOHWHQHVHWOHJOHWWKDWiVVDOOHKHWV]iPROQL

F0LYHOD]RV]WMiNEDQDV]HPpO\HVQpYPiVORFDWLYXVDKDV]QiOKDWyDELUWRNRVNLIHMH]pVpUH HEEHQIHOWHKHWHQRURV]EHIRO\iVPXWDWNR]LN

G$YRJXOQpYXWyVV]HUNH]HWHWLOOHWHQLVWDOiONR]WDPKDVRQOyQp]HWWHO

H2URV]EHIRO\iVOHKHWDV]HONXSV]HUNH]HWHVHWpEHQLVDQpYXWyVV]LQWDJPDHV]HULQWDV]HO NXSDUpJHEEL¶PHLQ5HQWLHULVW¶V]HUNH]HWHWD]RURV]XPHQ»QDNPHJIHOHOHOHPPHOHJpV]tWHWWHNL GHDELUWRNRVV]HPpO\MHOHWPHJWDUWRWWD

I(J\V]HU]V]HULQWDPDJ\DUGDWLYXVSRVVHVVLYXVD]ÄHXUySDL´Q\HOYHNNHOYDOyNRQYHUJHQ FLDHUHGPpQ\HGHXJ\DQD]RQGROJR]DWiEDQD]WLViOOtWMDKRJ\DPDJ\DUÄOHPiVROWD´DV]RPV]pGRV Q\HOYHNH]HQV]HUNH]HWpW

,VPHUHWHLPV]HULQWDGDWLYXVSRVVHVVLYXVLIXQNFLyNLDODNXOiViWDPDJ\DUW|UWpQHWLQ\HOYpV]HWEHQ PHJQ\XJWDWyDQWLV]Wi]WiNVH]PXWDWLVPXWDQGLVpUYpQ\HVDWiYROLNRURNHVHPpQ\HLUHLVYDJ\LVQHP NHOO REVN~UXV NDSFVRODWRNDW J\DQtWDQL D] XUiOL pV D] LQGRJHUPiQ V]HUNH]HWHN NLDODNXOiViEDQ

$ORFDWLYXVUDJRVYDJ\ORFDWLYXVLQpYXWyVQpYV]yHUHGHWLOHJQHPDELUWRNRVQDNKDQHPDELU WRNV]yiOWDOMHO|OWGHQRWDWXPKROOpWpQHNDNLIHMH]pVpUHV]ROJiOKDWRWWDPLQWH]PpJPDLVpU]pNHO

(4)

KHW±SpOGiXODILPHLOOlRQYLHUDLWD¶QHNQNYHQGpJHLQNYDQQDN¶a¶YHQGpJHNYDQQDNQiOXQN¶PRQ GDWEDQ±VH]DPHOOHWWV]yOKRJ\D]LO\HQV]HUNH]HWHNLVWHUPpV]HWHVVSRQWiQPyGRQM|WWHNOpWUH

1DJ\RQU|YLGHQWLV]Wi]QRPNHOOPLpUWHQGD]L]DIHWV]HUNH]HWWHUPLQXVRQPHUWWXGWRP PDOQHPN|]LVPHUWIRJDORPUyOYDQV]yY|91-$5&(9$RWYUHG/LQJYLVWLTHVNLMÃQFLN ORSHGLTHVNLM VORYDUÇ0RVNYD 0LYHO Q\HOYFVDOiGXQNEDQ D W|U|N Q\HOYHNEHOL YL V]RQ\RNUDKLYDWNR]YDRSHUiOQDNH]]HODIRJDORPPDOpQLVHOVVRUEDQD]RNUDDPHJKDWiUR]iVRNUD YROWDPWHNLQWHWWHODPHO\HNIOHJDW|U|NQ\HOYHNYLV]RQ\DLWWiUJ\DOYDpUWHOPH]LN$]iOWDODPHOpU KHWDNpUGpVUHYRQDWNR]yV]&N|VWXUNROyJLDLV]DNLURGDORPEyOpVD]XUDOLV]WLNDLiOOiVIRJODOiVRN EyOD]OiWKDWyKRJ\D]DIQpYLELUWRNRVMHO]VV]HUNH]HWPLQVOL]DIHWQHNDPHO\EHQOHJDOiEE DELUWRNV]yQWNU|]GLNDELUWRNYLV]RQ\MHO|OMHSHGLJELUWRNRVV]HPpO\MHOWHKiWSOPDKi]WHWH MHDKi]QDNDWHWHMH$]L]DIHWWHKiWDELUWRNRVMHO]VV]HUNH]HWHNHJ\LNHDPHO\HNEOD]XUiOL Q\HOYHN|VV]HVHQQpJ\HWLVPHUQHN(]HNDN|YHWNH]N

0RUIROyJLDLODJDV]HUNH]HWHJ\LNWDJMiQVLQFVMHO|OYHDELUWRNYLV]RQ\H]WHKiWMHO|OHWOHQ YDJ\LVQHPL]DIHWLGHJ\DNUDQDV]y|VV]HWpWHOHNpV|VV]HWpWHOV]HU&V]yNDSFVRODWRNWDUWR]QDNSO PKi]WHWPGXWRPNHNãnGYHUÇDPEDUDEXNYDPEDUGYHUÇ¶FVHUSQ¬|ZXMÆãWR¶DKHJ\WH WHMpQ¶YRWMãNRODVDGnZNROÇQ\MVDGn]UMS°]DQG,UDnVNDWHUWÇVDOÇIHWNDnRV]WM9MQLSR"LND

¶DQFLSMH¶YRJSXNVRZ¶IHMEU¶V]HONSWSU\nY\VRWDGHUHYDnYDJ\LVÄ1RPHQ1RPHQ´

&VDNDELUWRNRVMHO]QYDQELUWRNYLV]RQ\WNLIHMH]PRUIpPDH]VHPL]DIHWKLV]HQDMHO ]HWWV]yQHPPXWDWMDDELUWRNYLV]RQ\WSOILWDORQNDWWR¶DKi]WHWHMH¶FVHUNXLålQÆ/ÆU¶D NLUiO\OiQ\D¶RV]WM7UD"nUÆVQÆMND¶DWHQJHUYL]pEH¶MXUSDKDGHnVPRODGHUHYDn MHQDESDJ,nSDQLFDPRHMVWDUZHMVHVWU\nYDJ\LVÄ1RPHQ&[1RPHQ´

&VDNDELUWRNV]yQYDQMHO|OYHDELUWRNYLV]RQ\PpJSHGLJELUWRNRVV]HPpO\MHOOHOWHKiWL]DIHW KLV]HQDMHO]HWWV]yQYDQDV]LQWDJPDHOHPHLN|]WLYLV]RQ\WNLIHMH]PRUIpPDSOPDKi]WHWH MHRV]WM9MUl"eÉO¶D]|UHJHPEHUIHMH¶YRJeOwSXNH¶DOyIHMH¶]UMND",©XJMDV¶LQ .lWFKHQV6FKOLQJH¶YDJ\LVÄ1RPHQ1RPHQ3[´

0LQGDELUWRNRVMHO]QPLQGDMHO]HWWV]yQYDQELUWRNYLV]RQ\WNLIHMH]PRUIpPDYDJ\LV L]DIHWKLV]HQDMHO]HWWV]yQYDQDV]LQWDJPDHOHPHLN|]WLYLV]RQ\WNLIHMH]PRUIpPDSOPDKi]QDN DWHWHMHFVHUNXLålQÆ/ÆUåÆ¶DNLUiO\OiQ\D¶YRWMNROKR]OHQPX]MHPH]n]HPO»NROKR]QD»n RV]WM '1"UDVQDWZ$ÆW¶GDV *HOG GHV .DXIPDQQHV¶ MXUDNDQ P,WLGDnXSU»[Q\H ROHQL PRHJRVWDUZHJREUDWDEXNYEUDWDPRHJRXSU»[Q\HHJRnMHQN0/0U¶NRED/DnZNXUDGLNRJR ROHQ»nYDJ\LVÄ1RPHQ&[1RPHQ3[´

$ %(5(&=.,*È%25 06)2X 1\. DNL D OHJW|EEHW IRJODONR]RWW H NpUGpVVHODYROJDLpVDSHUPLQ\HOYHNHWYDODPLQWDPDJ\DUWHPOtWLRO\DQNpQWDPHO\HNDONDOPD]

]iND]L]DIHWV]HUNHV]WpVPyGRWVPHJMHJ\]LKRJ\DPDJ\DUNLYpWHOpYHOHQ\HOYHND]HUHGHWLILQQ XJRUWHKiWDELUWRNRVV]HPpO\MHOQpONOLV]HUNH]HWHWLVLVPHULN6,021<,QDN$MHO]NPRQGDWWDQD

%SDUUyOLVYROWWXGRPiVDKRJ\HV]HUNH]HWHOIRUGXODYRJXOEDQpVD]RV]WMiNEDQLVV H]]HOOpQ\HJpEHQKHO\HVQHNPLQVODSUREOpPiWHOVNpQWPHJYL]VJiOW%(.(.HOHWL6]HPOH

±IHOLVPHUpVHKRJ\D]L]DIHWKDQHPLViOWDOiQRVMHOOHJJHOGHDILQQVpJLpVDODSSNL YpWHOpYHODILQQXJRUQ\HOYHNPLQGHJ\LNpEHQLVPHUW

%.XULX]yPNpQWPHJNHOOHPOtWHQHPKRJ\D]HXUySDLLQGRJHUPiQQ\HOYHNN|]ODJHU PiQEDQ pV D] ~MODWLQEDQ VHP WHOMHVHQ LVPHUHWOHQ D] XUiOL pV D] DOWDML Q\HOYHN L]DIHWV]HUNH]HWpUH HPOpNH]WHWSRVVHVVLYV]LQWDJPD$]iOWDODPiWWDQXOPiQ\R]RWWV]DNLURGDORPPLQG|VV]HNpWLO\HQ LQGRJHUPiQQ\HOYFVRSRUWUyOWXGSOQZHPVHLQ+XW¶ZHVVHQ+XW¶GHP9DWHUVHLQ+DXVaGHV 9DWHUVVHLQ+DXVaKOGHYDGHU]LMQKXLVROGHOODPLDVRSUDYYHVWDLOVXRFRORUH¶DN|QW|V|PQHN D]V]tQH¶$JHUPiQEDQDV]LQWDJPDHOVKHO\pWHOIRJODOyELUWRNRVWRSLNDOL]iOYDYDQ3$2/2

5$0$77KH*HUPDQLFSRVVHVVLYHW\SHGHP9DWHUVHLQ+DXV,Q/LQJXLVWLFVDFURVV+LVWRULFDODQG

*HRJUDSKLFDO%RXQGDULHV+RQRXURI-DFHN)LVLDNRQWKH2FFDVLRQRIKLV)LIWLHWK %LUWKGD\ (G ',(7(5.$67296.<±$/(.6$1'(56=:('(.9ROXPH/LQJXLVWLF7KHRU\DQG+LVWRULFDO/LQ

(5)

JXLVWLFV7UHQGVLQ/LQJXLVWLFV6WXGLHVDQG0RQRJUDSKV%HUOLQ±1HZ<RUN±$PVWHUGDP pVDELUWRNRVOHJW|EEQ\LUHOHJDOiEEW|UWpQHWLOHJGDWLYXVEDQYDQD]RODV]EDQSHGLJJHQLWL YXVLDIRUPDGHOODKDV]QiODWRVVDELUWRNV]yPLQGKiURPLGp]HWWQ\HOYEHQV]HPpO\&ELUWRNRV QpYPiVLMHO]YHOYDQHOOiWYD7HKiWSRQWRVDQPHJIHOHOQHND]XUiOLQ\HOYHNL]DIHWV]HUNH]HWHLQHN D]]DODNO|QEVpJJHOKRJ\QHPELUWRNRVV]HPpO\MHOOHOKDQHPELUWRNRVQpYPiVVDOXWDOQDNYLVV]D DELUWRNRVUD

&$]L]DIHWV]HUNH]HWNLDODNXOiViQDNQLQFVXJ\DQQDJ\LURGDOPDGHPpJLVOHJDOiEEKiURP IpOHQp]HWUHEXNNDQKDWXQNEHQQH9DQQDNDNLNDODSQ\HOYLHUHGHW&NpQWYDOyV]tQ&VtWLN+$-'Ò3e

7(5 'LHXUDOLVFKHQ6SUDFKHQ,Q'LHXUDOLVFKHQ6SUDFKHQXQG/LWHUDWXUHQ6]HUN+$-'Ò3e7(5± '202.263e7(5 %XGDSHVW±+DPEXUJ ± HKKH] PpJ Y| %(1./25È1' hEHU GLH

%H]HLFKQXQJGHVXQJDULVFKHQ3RVVHVVLYDWWULEXWV,Q)HVWVFKULIWIU:ROIJDQJ6FKODFKWHU]XP*H EXUWVWDJ+UVJ&+*/b6(5±386=7$<-9HU|IIHQWOLFKXQJHQGHU6RFLHWDV8UDOR$OWDLFD%DQG :LHVEDGHQ01\±PiVRNDW|U|NQ\HOYHNNHONLDODNXOWNDSFVRODWRNUDYH]H WLNYLVV]DOHJDOiEELVDYROJDLpVDSHUPLQ\HOYFVRSRUWEDQYDODPLQWDPDJ\DUEDQ%(.(.HOHWL 6]HPOH±±%(5(&=.,$9ROJD±.iPDYLGpNQ\HOYHLQHNDUHiOLVNDSFVRODWDL,Q

$UHiOLVQ\HOYpV]HWLWDQXOPiQ\RN6]HUN%$/È=6-È126%S5e'(,>'LVNXVVLRQVEHL WUDJ@ ,Q &RQJUHVVXV 4XDUWXV ,QWHUQDWLRQDOLV )HQQR8JULVWDUXP %XGDSHVWLQL KDELWXV DQQR 6]HUN25787$<*<8/$3DUV,,%XGDSHVW)2.261\UYLV]RQWEHOVIHMOHPpQ\QHN WHNLQWHWWH$V]DPRMpGUDYRQDWNR]yDQQHPWXGRNHUHGHWPDJ\DUi]DWLNtVpUOHWHNUO$]XJRUQ\HOYHN D]pUWDODNtWKDWWiNNLD]L]DIHWV]HUNH]HWHWPHUWD]XUiOLILQQXJRUDODSQ\HOYEO|U|N|OWJHQLWLYXVHO W&QWpVEL]RQ\RVHVHWHNEHQV]NVpJYROWDELUWRNRVV]HUNH]HWHNEHQDJUDPPDWLNDLYLV]RQ\WNU|]

WHWpVpUHDELUWRNRVNLHPHOpVpUHWRSLNDOL]iOiViUDpVJHQLWLYXVKtMiQHVHWUDJJDOQHPYROWHJ\pUWHOP&Yp WHKHWKRJ\NpWQpYV]yELUWRNRVV]HUNH]HWHWDONRWRWW,O\HQHVHWEHQD]XJRUQ\HOYHND ELUWRNV]yKR]

MiUXOy(ELUWRNRVV]HPpO\MHOOHODPHO\WRSLNDOL]iOMDDELUWRNRVWWHKHWWpNpVWHKHWLNHJ\pUWHOP&Yp DV]HUNH]HWWDJMDLN|]WLV]LQWDNWLNDLYLV]RQ\WDV]HPpO\MHOKDV]QiODWDDPDJ\DUEDQiOWDOiQRVXOWSO DIL~OiEDPtJD]RELXJRUEDQPHJPDUDGWDONDOPLWRSLNDOL]iOyIXQNFLyMiEDQ(]WHOVHJtWKHWWH DV]HPpO\HVQpYPiVL ELUWRNRV MHO]V V]HUNH]HW DQDOyJLiMD LV DPLQW )2.26 tUWD Ä$]Ki]D IpOH V]HUNH]HWHNPLQWiMiUDDODNXOWDND]DSiPKi]DIpOHV]HUNH]HWHN´LK(]HQILQQXJRUYROJDL SHUPLXJRUQ\HOYHNL]DIHWV]HUNH]HWpW%(.(LKDYROJDLW|U|NQ\HOYHNKDWiViYDOPDJ\DUi]WD

%(5(&=.,LVH]WWHWWHDSHUPLpVDYROJDLQ\HOYHNYRQDWNR]iViEDQPtJDPDJ\DUHVHWpEHQYDODPL NRUOHKHWVpJHVQHNYpOWHD]WLVKRJ\H]ÄEHOVIHMOGpVHUHGPpQ\HLVOHKHW´%(5(&=.,06)2X

$SHUPLpVDYROJDLQ\HOYHNEHQLVMHOHQWNH]KHWYiODV]WKDWyDQDELUWRNRVV]HPpO\MHO0L YHO D PDJ\DUEDQ N|WHOH] D ELUWRNRV V]HPpO\MHO NLWpWHOH PRQGKDWQL N|YHWNH]HWHVHEE D W|U|N Q\HOYHNQpODELUWRNRVLO\HQNLIHMH]pVpEHQYDJ\LVDPDJ\DUD]LGHiOLVL]DIHWHVQ\HOY$]LVD]XUiOL Q\HOYHNVSRQWiQIHMOHPpQ\HPHOOHWWV]yOKRJ\QHPPLQGHJ\LNNpOYDJ\H]HUpYHW|U|NQ\HOYHN V]RURVV]RPV]pGViJiEDQDPDJ\DUHVHWpEHQH]W|UWpQHOPLWiYODWEyOWHNLQWYHNO|QEHQLVFVDNYLO ODQiVQ\LHSL]yGYROW)2.26VDO+$-'ÒYDOpV%(1.YHOHJ\WW~J\YpOHPKRJ\EHOVV]NVpJ V]HU&VpJMiUXOKDWRWWKR]]iD]L]DIHWL]PXVNLDODNXOiViKR]YDJ\PHJU]pVpKH]$ILQQXJRUQ\HOYHN HJ\UpV]pEHQMHOHQWNH]L]DIHWV]HUNH]HWW|U|NHUHGHWHPHOOHWWLpUYNpQWD]V]ROJiOKRJ\DW|U|NVpJ JHONDSFVRODWEDQHPNHUOWILQQVpJLpVODSSQHPLVPHULËJ\SHUV]H±KD QHPIRJDGRPHODW|U|NKD WiVQDNHEEHQLVPHJQ\LOYiQXOyiOOtWyODJRVV]HUHSpW±DUUDDNpUGpVUHLVYiODV]WNHOOHQHWDOiOQRP PLpUWQHPWDOiONR]XQNYHOHDFVDOiGOHJQ\XJDWLEEQ\HOYHLEHQ$ILQQVpJLEHQpVDODSSEDQQHPN|

YHWNH]HWWEHD]LO\PyGRQYDOyWRSLNDOL]iOiVEiUNpWVpJWHOHQOEHN|YHWNH]KHWHWWYROQDHKHO\HWW±

OHJDOiEELVDILQQEHQ±DJHQLWLYXVUDJRVELUWRNRVQDJ\REEQ\RPDWpNRWNDS(QQHNPDJ\DUi]DWiW pQ DJHQLWLYXVUDJPHJU]pVpEHQYpOHPIHOIHGH]QLDPHO\N|UOPpQ\HOpJVpJHVGHQHPV]NVpJV]HU&

RNDDQQDNKRJ\HV]HUNH]HWDOHJQ\XJDWLEEFVRSRUWEDQLVPHUHWOHQ$W|EELXUiOLQ\HOYEHQVHP WHOMHVHQiOWDOiQRVD]L]DIHWV]HUNH]HWD]HJ\HWOHQNLYpWHODPDJ\DUGHpSSHQH]D]D]XUiOLQ\HOY DPHO\DOHJU|YLGHEELGHLJYROWNDSFVRODWEDQW|U|NQ\HOY&QpSHNNHO$NiUXUiOLDODSQ\HOYLHUHGHW&

D]L]DIHWV]HUNH]HWDNiUD]HJ\HVQ\HOYFVRSRUWRNYDJ\Q\HOYHN|QiOOypOHWpEHQMHOHQWPHJPHU

(6)

YpOHWOHQQHNQHPPHUQpPPLQVtWHQLKRJ\pSSHQH]HNEHQDQ\HOYHNEHQLVPHUHWHVPpJSHGLJD]pUW QHPPHUWD]LQWHQ]tYW|U|NVpJLNDSFVRODWRNVWLPXOiOyDQKDWKDWWDNYDJ\D]HUHGHWLL]DIHWV]HUNH]HW PHJU]pVpUHYDJ\DEHOVV]NVpJV]HU&VpJiOWDONLYiOWRWWIHMOGpVLWHQGHQFLDPHJHUV|GpVpUH7H KiWQHPXWDVtWRPHOD]XUiOL±W|U|NVpJLNDSFVRODWRNNpWQ\HOY&VpJHVHWOHJHVV]HUHSpWGHHJ\iOWDOiQ QHPOiWRPG|QWQHNVHP(EEODV]HPSRQWEyOD]LVILJ\HOPHWpUGHPHOKRJ\RO\DQHXUySDLLQGR JHUPiQQ\HOYHNEHQLVWDOiONR]XQNL]DIHWQHNPLQVtWKHWV]HUNH]HWWHODPHO\HNQHNQHPYROWDNW|

U|NNDSFVRODWDLN(UJRD]XUiOLQ\HOYHNL]DIHWV]HUNH]HWHEHOVYiOWR]iVRNHUHGPpQ\HOHKHWQHP SHGLJLGHJHQPLQWDiWYpWHOH

0LQGDKDELWtYPLQGD]L]DIHWV]HUNH]HWLGHJHQKDWiVWyOIJJHWOHQOM|KHWHWWOpWUHD]XUiOL Q\HOYHNEHQGHD]LQWHQ]tYXUiOL±W|U|NVpJLQ\HOYLNDSFVRODWRNEDQUpV]WYHYXUiOLQ\HOYHNEHQD]

LGHJHQKDWiVQDNV]HUHSHOHKHWHWWD]L]DIHWPHJPDUDGiViEDQ

+217,/È6=/Ï

)HOWHYpVHNpVPDJ\DUi]DWRNM YpJ& ÈUSiGNRULWXODMGRQQHYHLQNUO

OÄ$3RNDMKHO\QpYHUHGHWHpVD]yPDJ\DUNRULMaDMHMKHO\QpYNpS]´FtP&GROJR]DWRP 01\±PHJMHOHQpVHXWiQ%(1./25È1'W|EEV]|UWXGRPiVRPUDKR]WDKRJ\DFLNN EHQOHtUWDNKR]PHJMHJ\]pVHNHWNtYiQI&]QL9iODV]RPPLQGHQHVHWEHQD]YROWDPLPRVWLVPHJ WLV]WHOWHWpVV]iPRPUDKD%(1./25È1'ILJ\HOHPUHPpOWDWMDtUiVRPDW(QJHGWHVVpNPHJKRJ\Et UiOy PHJMHJ\]pVHLUH $] yPDJ\DU M DMHM KHO\VpJQpYNpS] 01\ ± D WRYiEELDNEDQ%(1.LPYiODV]ROMDNpVDIHOYHWHWWNpUGpVHNKH]QpKiQ\~MDEEDGDWWDOLVV]RO JiOMDN

%(1./25È1'W|EEV]|UV]yYiWHWWHKRJ\GROJR]DWRPEDQÄMyUpV]WNLIHMWpVQpONOFVXSiQ VXPPi]DWNpQW´PHJSHQGtWHNÄQpKiQ\RO\DQWp]LVWDPHO\DW|UWpQHWLQpYNXWDWiViOWDOiQRVDEENpU GpVHLEH YiJ´ L P $ VWtOXVRPDW NULWLNXVRP V]HULQW ÄVRPPiV PHJMHJ\]pVHLPHW´ UpV]EHQ PDJ\DUi]KDWMDKRJ\LGHJHQNHGHPD]XWyEELLGNEHQV]RNiVViYiOWW~OtUWWHUMHQJVQHKH]HQN|

(POpNH]WHWO%(1.Ä7RNDMpVNDSFVROWQHYHL´FtP&WDQXOPiQ\iEDQ ,Q 1\tUL $QWDO NLOHQFYHQpYHV6]HUN%h.</È6=/Ï 6]HJHG±+tPHVXGYDU±.UpY±7RNDM,Q8 1pY pV W|UWpQHOHP 7DQXOPiQ\RN D] ÈUSiGNRUUyO %S ± HOYHWHWWH D7RNDMKHO\QpY NRUiEEL W|U|N HWLPROyJLiMiW pV EHQQH YDJ\ D] LVPHUHWOHQ HUHGHW&WRN¶EXURN WDUWy¶ YDJ\ D EL ]RQ\WDODQHUHGHW&WDOiQW|U|NWRN¶KDOIDMWD¶HVHWOHJDV]OiYHUHGHW&WRNDN|]QpYEODODNXOW7RFX 7RN7KRND7XNDÈUSiGNRULV]HPpO\QpYYDODPHO\LNpWYpOWHPHO\DMDMHMIRUPiQVVDODODNXOW 7RNDMMi pV H] D IRUPiQV D]RQRV D ELUWRNMHOOHO -yOOHKHW YROW7XND\ V]HPpO\QpY 95

*<g5))<%(1.V]HULQWDKHO\QpYÄDOLJKDSXV]WDV]HPpO\QpYEOOHWW´H]pUWDELUWRNMHO ÄQDJ\ YDOyV]tQ&VpJJHO KHO\QpYNpS]V]HUHS&´ WHKiW D Ä7RNDM KHO\VpJQHYHLQN YpJ]GpVH XJ\D QRO\DQ IXQNFLyM~ PLQW D]LKHO\QpYNpS]´ (EEO %(1. V]HULQW HJ\ iOWDOiQRVDEE PDJ\DU Q\HOYW|UWpQHWLWDQXOViJLVOHYRQKDWyÄKHO\QpYNpS]LQNVRUiEDQDMDMHMMHOLVRNYHWOHQOV]i PROQXQNNHOO´LP

)HQWHPOtWHWWtUiVRPEDQNLIRJiVROWDPD7RNDMV]HPpO\QpYQHNWNSWDOiOJDWiVUDV]RUtWNR]y

¶KDO¶¶GRER]WRN¶HVHWOHJ¶WRND¶D]D]NO|QE|]HUHGHW&pVMHOHQWpV&N|]V]DYDNEyOYDOyWHOMHVHQ EL]RQ\WDODQOHYH]HWpVpW±ÄDPLWNpWKiURPQ\HOYEOLVOHKHWPDJ\DUi]QLDQQDNYDOyMiEDQQLQFVHO IRJDGKDWyPDJ\DUi]DWD´±pVLGp]WHPQpKiQ\MYpJ&ÈUSiGNRULV]OiYHUHGHW&V]HPpO\QHYHWPH