%XGDSHVWV]HSWHPEHU
%XUJHU)HUHQF±5DEyF]NL/DXUD±6]DEy6iQGRU
$]|QNpQWHVN|UQ\H]HWYpGHOPL PHJiOODSRGiVRNDONDOPD]iViQDN
HONpV]tWpVH
V]iP
,6%1;
,661
$%XGDSHVWL.|]JD]GDViJWXGRPiQ\LpVÈOODPLJD]JDWiVL(J\HWHP .|UQ\H]HWWXGRPiQ\L,QWp]HWpQHNWDQXOPiQ\DL
6RUR]DWV]HUNHV]W .HUHNHV6iQGRU
.LVV.iURO\pV
$WDQXOPiQ\D0DJ\DU7XGRPiQ\RV$NDGpPLD 0DJ\DURUV]iJD]H]UHGIRUGXOyQF VWUDWpJLDLNXWDWiVDLQDNNHUHWpEHQpV
D.|UQ\H]HWYpGHOPL0LQLV]WpULXP DQ\DJLWiPRJDWiViYDONpV]OW
)HOHOVNLDGy.HUHNHV6iQGRULJD]JDWy 2OYDVyV]HUNHV]W3yVYDL$GULHQQH 0&V]DNLV]HUNHV]W0pV]|O\/iV]Oy
)HGpOWHUYeOHV$QGUHD
.pV]OWD]$XOD.LDGy.IWQ\RPGiMiEDQ
%XGDSHVWL.|]JD]GDViJWXGRPiQ\LpVÈOODPLJD]JDWiVL(J\HWHP .|UQ\H]HWWXGRPiQ\L,QWp]HW
.|UQ\H]HWJD]GDViJWDQLpVWHFKQROyJLDLWDQV]pN
&tP%XGDSHVW)YiPWpU 3RVWDFtP%XGDSHVW3I
7HOID[
,QWHUQHWKWWSNRUQ\ENHKX
MiQOiV
$] HOP~OW pYWL]HGEHQ HJ\pUWHOP&Yp YiOW KRJ\ D N|UQ\H]HWL SUREOpPiN PHJROGiVD WHUPpV]HWWXGRPiQ\L P&V]DNL JD]GDViJL WiUVDGDORPWXGRPiQ\L MRJL pV iOODP LJD]JDWiVLLVPHUHWHNHJ\WWHVDONDOPD]iViWLJpQ\OL6]iPRWWHYHQNLEYOWDNODVV]LNXV N|UQ\H]HWL SUREOpPDN|U D N|UQ\H]HW pV HJpV]VpJEL]WRQViJ D WHUPpV]HWL HUIRUUiV JD]GiONRGiV YDODPLQW D] HJ\UH QDJ\REE MHOHQWVpJHW NDSy YiURV pV YLGpNIHMOHV]WpV NpUGpVHLYHO $ %XGDSHVWL .|]JD]GDViJWXGRPiQ\L pV ÈOODPLJD]JDWiVL (J\HWHPHQ D N|UQ\H]HWL SUREOpPiNQDN HEEHQ D] ~M V]HPOpOHWEHQ W|UWpQ RNWDWiViUD pV NXWDWiViUD EHQDODNXOWPHJD.|UQ\H]HWWXGRPiQ\L,QWp]HWD]$JUiUN|]JD]GDViJLpVYLGpN IHMOHV]WpVL D *D]GDViJI|OGUDM] D .|UQ\H]HWJD]GDViJWDQL pV WHFKQROyJLDL WDQV]pNHN YDODPLQWD*D]GDViJHWLNDLpVD-|YNXWDWiVL.|]SRQWRNUpV]YpWHOpYHO
0RVWLQGXOyVRUR]DWXQND]RNDWDWDQXOPiQ\RNDWDGMDPDMGN|]UHPHO\HNHWD],QWp]HWL NROOpJiNtUQDNLOOHWYHD]iOWDOXNV]HUYH]HWWNXWDWiVRNVRUiQNpV]OQHN6RUR]DWXQNHOV N|WHWHLD]07$6WUDWpJLDLNXWDWiVRNNHUHWpEHQHONpV]OWLOOHWYHNpV]OWDQXOPiQ\RNDW WDUWDOPD]]iN (]HNHW D NXWDWiVRNDW D] 07$ HOQ|NH NH]GHPpQ\H]WH pV D .|UQ\H]HW YpGHOPL0LQLV]WpULXPILQDQV]tUR]]D(]D]|WpYHVNXWDWiVV]HUYH]pVLNRQVWUXNFLyHGGLJ LV ILJ\HOHPUH PpOWy HUHGPpQ\HNHW KR]RWW (QQHN N|V]|QKHWL OpWpW D] HXUySDL XQLyV FVDWODNR]iV N|UQ\H]HWYpGHOPL IHOWpWHOHLW pV N|YHWNH]PpQ\HLW YL]VJiOy W|EE 07$
NLDGiV~N|Q\YpVHJ\V]iPRWHOpUWVRUR]DWD=|OG%HOpS
$NRUiEELDNKR]KDVRQOyDQPRVWLVD]WV]HUHWQpQNKRJ\P&KHO\WpVIyUXPRWWHUHPWVQN D KD]DL N|UQ\H]HWSROLWLND pV N|UQ\H]HWYpGHOHP DNWXiOLV pV OHJiWIRJyEE NpUGpVHLQHN PHJKRQRVtWVXN D N|UQ\H]HWWXGDWRV V]HPOpOHWHW D] HJ\HV JD]GDViJL iJD]DWRNEDQ pV iWIRJy V]DNPDL NRQV]HQ]XV NLDODNtWiVD iOWDO SUyEiOMXN PHJ EHIRO\iVROQL D SROLWLNDL G|QWpVHNHW(]DQQiOLVLQNiEEIRQWRVIHODGDWPHUWDN|UQ\H]HWYpGHOHPQHP]HWN|]LpV KD]DL W|UWpQHWpW YL]VJiOYD KHO\WiOOyQDN OiWV]LN D] D N|YHWNH]WHWpV KRJ\ D PDJ\DU WiUVDGDORP NLKDJ\ QpKiQ\ RO\DQ IHMOGpVL OpSFVW DPLW 1\XJDW(XUySD YpJLJMiUW 1\XJDWRQ D JD]GDViJ J\RUVDQ Q|YHNY N|UQ\H]HWL V]HPSRQWEyO QHP KDWpNRQ\
IHMOGpVLIi]LViEDQDN|UQ\H]HWL pUWpNHNHW PpJQHPEHFVOWpNpV HQQHN N|YHWNH]WpEHQ HOSXV]WtWRWWiN D N|UQ\H]HWHW $ HV pYHN HOHMpQ D N|UQ\H]HWSXV]WtWiV PpUWpNH VRNNV]HU&HQ KDWRWW D Q\XJDWHXUySDL WiUVDGDOPDNUD pV PHJHUVtWHWWH D N|UQ\H]HWL PR]JDOPDNDW WiUVDGDOPL WiPRJDWiVW V]HU]HWW D N|UQ\H]HWYpGHOHPQHN 0DJ\DU RUV]iJRQDJD]GDViJJ\HQJHWHOMHVtWPpQ\HPLDWWQHPYROWRO\DQPpUWpN& N|UQ\H]HWL SXV]WtWiV PLQW DPLW 1\XJDWRQ WDSDV]WDOWDN D KD]DL WiUVDGDORPEDQ VHP M|WW OpWUH D N|UQ\H]HWYpGHOPHLUiQWRO\DQPpUWpN& HON|WHOH]HWWVpJPLQWDPL1\XJDW(XUySiEDQD DVpYHNGHUHNiQPpJMHOOHP]YROW
$ N|UQ\H]HWL WXGDW NLDODNXOiViQDN HJ\ IRQWRV HOHPH D] DGRWW N|UQ\H]HWL iOODSRW NLYiOWRWWD QDJ\IRN~ HOpJHGHWOHQVpJ V]LQWH NLPDUDGW D KD]DL IHMOGpVEO $ PDJ\DU
$
$
JD]GDViJ J\RUVDEE Q|YHNHGpVL V]DNDV]D D N|UQ\H]HWL V]HPSRQWEyO KDWpNRQ\DEE WHFKQROyJLiN HOWHUMHGpVpQHN LGV]DNiUD HVLN tJ\ pUWKHW KRJ\ D JOREiOLV JD]GDViJ KDWpNRQ\ViJiEDYHWHWW KLW D WiUVDGDORP WDJMDLQDN D QDJ\ UpV]pQpO D QHROLEHUiOLV D]
iOODPLEHDYDWNR]iVWWDJDGyJD]GDViJILOR]yILDLUiQWLIRJpNRQ\ViJRWWiSOiOMD(]HNQHND WpYHGpVHNQHNpVDN|UQ\H]HWLWXGDWIHMOGpVpEHQNHOHWNH]HWWUpVQHND]HOOHQV~O\R]iVDD WXGRPiQ\QDN pV D] RNWDWiVQDN D IHODGDWD 0RVW LQGXOy VRUR]DWXQNNDO D N|UQ\H]HW SROLWLND WXGRPiQ\RV PHJDODSR]iViW pV D WiUVDGDORP D IRJ\DV]Wy N|UQ\H]HWL HON|WH OH]HWWVpJpQHN Q|YHOpVpW NtYiQMXN V]ROJiOQL $ VLNHUUH FVDN DNNRU YDQ HVpO\QN KD
|VV]HIRJXQN.pUMNgQ|NHWNXWDWyNpQWROYDVyNpQWOHJ\HQHNWiUVDLQN.LDGYiQ\DLQNDW HJ\IRUPiQ DMiQOMXN D N|UQ\H]HWWXGRPiQ\RN P&YHOLQHN pV RNWDWyLQDN D] iOODP LJD]JDWiVHWHUOHWHQGROJR]yWLV]WVpJYLVHOLQHNLO\HQV]DNLUiQ\~pVV]DNGROJR]DWXNDW HWpPDN|UEHQtUyHJ\HWHPLKDOOJDWyNQDN]|OGV]HUYH]HWHNQHNpVD]pUGHNOG V]DNPDL N|]|QVpJQHN0HJWLV]WHOILJ\HOPNHWHOUHLVN|V]|QMN
%XGDSHVW
7LV]WHOHWWHO
.HUHNHV6iQGRUHJ\HWHPLWDQiU D.|UQ\H]HWWXGRPiQ\L,QWp]HW
LJD]JDWyMD
7DUWDORP
$-È1/È6
%(9(=(7e6
-2*6=$%È/<,+È77e5
$1(0=(7.g=,.87$7È62.(5('0e1<(,$=g1.e17(60(*È//$32'È62.
$/.$/0$=+$7Ï6È*È9$/ .$3&62/$7%$1
7RYiEELNLHJpV]tWpVHND]HOPpOHWHNKH]
$*<$.25/$7,$/.$/0$=È6.g9(7(/0e1<(,$1(0=(7.g=,7$3$6=7$/$72. $/$3-È1 gVV]HIRJODOyD](XUySDL8QLyVWDSDV]WDODWRNUyO
$]HJ\LNSRWHQFLiOLVRUV]iJSpOGDDPHJiOODSRGiVRNDONDOPD]iViUD+ROODQGLD
$]LQWHQ]tYDONDOPD]iVLWHUOHW-DSiQ
$](J\HVOWÈOODPRNJ\DNRUODWDDPHJiOODSRGiVRNDONDOPD]iViEDQ
$]|QNpQWHVPHJiOODSRGiVRNV]DNWHUOHWLPHJRV]OiVD.DQDGiEDQ
6=$.7(5h/(7(.%($=2126Ë7È6$
$N|UQ\H]HWLWHUYH]pVLUHQGV]HUDODSMiQDGyGyV]DNWHUOHWHND]|QNpQWHV
PHJiOODSRGiVRNDONDOPD]iViUD
(6(77$18/0È1<2.
(QHUJLDWHUPHOV]HNWRUD]HUP&YHN|VV]NLERFViWiVLYDODPLQWD]HJ\HVHUP&YHNUH YRQDWNR]yKDWiUpUWpNHLQHNPHJiOODStWiVD (UP&YHN|VV]NLERFViWiVLKDWiUpUWpNHLQHNPHJiOODStWiVDMRJV]DEiO\EDQ
*D]GiONRGyV]HUYH]HWHN±D]|VV]NLERFViWiVLKDWiUpUWpNHWNLHOpJtW±NLERFViWiViQDN PHJiOODStWiVD .LERFViWKDWyPHQQ\LVpJHNHJ\PiVN|]|WWLiWHQJHGpVH
$KDWiUpUWpNHNEHWDUWiViYDONDSFVRODWRVUHQGHONH]pVHN
$]HQHUJLDIRJ\DV]WiVFV|NNHQWpVpWFpO]yHV]N|]|N 9pGHWWWHUOHWHNHQpVKDWiVWHUOHWHLNHQDJD]GiONRGyNNDON|W|WWPHJiOODSRGiVRN +XOODGpNJD]GiONRGiVDWHUPpNGtMpVDNRRUGLQiOyV]HUYH]HWHNSRWHQFLiOLVV]HUHSH /pSpVD]|QNpQWHVPHJiOODSRGiVIHOp .g9(7.(=7(7e6(.$.87$7È6729È%%,)2/<7$7È6È1$./(+(76e*(,
,52'$/20-(*<=e.
,QWHUM~N IJJHOpN$]1.3HV,QWp]NHGpVL7HUYpQHNILQDQV]tUR]iVLSURJUDPMD IJJHOpN$]1.3HV,QWp]NHGpVL7HUYpQHNILQDQV]tUR]iVLSURJUDPMD IJJHOpN$]1.3HV,QWp]NHGpVL7HUYpQHNILQDQV]tUR]iVLSURJUDPMD
$V]HU]N
$VRUR]DW«
%HYH]HWpV
$WDQXOPiQ\DN|UQ\H]HWYpGHOPL V]DEiO\R]iV ~QKDUPDGLN JHQHUiFLyMiUD MHOOHP] |QNpQWHV PHJiOODSRGiVRN KD]DL J\DNRUODWEDQ W|UWpQ PHJKRQRVtWKDWyViJiKR] NtYiQ KR]]iMiUXOQL
$KKR] KRJ\ D] |QNpQWHV PHJiOODSRGiVRN D N|]HOM|YEHQ YDOyEDQ PHJIHOHO V]HUHSHW NDSKDVVDQDN D PDJ\DU N|UQ\H]HWSROLWLNiEDQ LOOHWYH ±V]DEiO\R]iVEDQ D]RQRVtWDQL NHOO D]
DONDOPD]KDWyViJIHOWpWHOHLW$]HV]N|]J\DNRUODWLDONDOPD]iViQDNHONpV]tWpVpKH]DN|YHWNH]
NXWDWiVLIHODGDWRNDWNHOOHOYpJH]QL
$ QHP]HWN|]L WDSDV]WDODWRN iWWHNLQWpVH IHOGROJR]iVD YDODPLQW D WiUJ\EDQL (8 DMiQOiV WDUWDOPLpUWpNHOpVH
$ 0DJ\DURUV]iJRQ HGGLJ EHYH]HWHWW RO\DQ V]DEiO\R]iVRN LOOHWYH WDSDV]WDODWDLQDN iWWHNLQWpVHHOHP]pVHDPHO\HNEHQIHOOHOKHWND]|QNpQWHVPHJiOODSRGiVRN HJ\HVHOHPHL FVtUiL
$KD]DLN|UQ\H]HWYpGHOPLV]DEiO\R]iVpUYpQ\HVtWpVHVRUiQDJ\DNRUODWEDQ±LQIRUPiOLVDQ MRJLODJ WXODMGRQNpSSHQ NpWHV PHJDODSR]RWWViJJDO ± DONDOPD]RWW ÄDONXN´ WDSDV]WDODWDLQDN EHPXWDWiVD
$]HV]N|]DONDOPD]iViUDOHJLQNiEEPHJIHOHON|UQ\H]HWYpGHOPLV]DNWHUOHWHNN|UQ\H]HWL FpORN D]RQRVtWiVD D MHOOHP]HQ pULQWHWW JD]GDViJL iJD]DWRN V]DNiJD]DWRN NLGHUtWpVH D]
DOiEELNpUGpVHNHOHP]pVpYHOpVpUWpNHOpVpYHO
i PLO\HQV]DEiO\R]iVLLOOHWYHJD]GDViJLKHO\]HWHNEHQpUYpQ\HVOQHND]HV]N|]HOQ\HL"
i PLO\HQKHO\]HWHNEHQKHO\HWWHVtWKHWLDJD]GDViJLV]DEiO\R]iVW LOOHWYHPLNRU|WY|]KHW D]HV]N|]DJD]GDViJLV]DEiO\R]yNNDO"
i PHO\HND]HV]N|]P&N|GNpSHVVpJpQHNiOWDOiQRVLOOHWYHV]DNWHUOHWHLIHOWpWHOHL"
$ WDSDV]WDODWRN PyGV]HUHV IHOWiUiViEyO N|YHWNH] J\DNRUODWL OpSpVHN PHJIRJDOPD]iVD DPHO\(. D.|UQ\H]HWYpGHOPL 0LQLV]WpULXP MRJV]DEiO\HONpV]tW pVLQWp]PpQ\IHMOHV]WpVL PXQNiMiKR]NRQNUpWMDYDVODWRNNpQWPHJIRJDOPD]KDWyN
$ 0HJEt]y iOWDO HOIRJDGRWW NXWDWiVL WHPDWLNiQDN PHJIHOHOHQ D MHOHQ WDQXOPiQ\ D] HOV NpW UpV]IHODGDWRWW~OQ\RPyUpV]WDKDUPDGLNUpV]IHODGDWRWNLVHEEUpV]EHQNHOOKRJ\WHOMHVtWVHPtJ D WRYiEEL PXQND H WDQXOPiQ\ HUHGPpQ\HLQHN pUWpNHOpVpWO IJJHQ IRO\WDWyGKDW $ NXWDWiV VRUiQ PLQGD]RQiOWDO HONHUOKHWHWOHQ YROW KRJ\ OHYRQMXQN EL]RQ\RV N|YHWNH]WHWpVHNHW D
QHJ\HGLN UpV]IHODGDWRW LOOHWHQ LV PLYHO HQQHN IJJYpQ\pEHQ OHV] pUGHPHV D PiVRGLN pV KDUPDGLNUpV]IHODGDWNLHJpV]tWYL]VJiODWDLWHOHP]pVHLWHOYpJH]QL
$ UpV]IHODGDWQiO WDJODOW NpUGpVHN PHJYiODV]ROiVD PHJDODSR]]D D N|UQ\H]HWSROLWLND VW D N|UQ\H]HWYpGHOPL N|]LJD]JDWiV FpOV]HU& LQWp]NHGpVHLW D] |QNpQWHV PHJiOODSRGiVRN NRQNUpW HONpV]tWpVpKH] $ NLW&]|WW FpORN VWUXNWXUiOW PHJN|]HOtWpVpW D MHOHQ HOHP]pV D N|YHWNH]
OpSpVHNHQNHUHV]WOpULHO
(OV]|UDMHOHQOHJLKD]DLMRJV]DEiO\LKiWWHUHWWHNLQWMNiWDQQDNPHJiOODStWiVDpUGHNpEHQKRJ\
PLO\HQ KD]DL V]DEiO\R]iVL NHUHWHN OHKHWVpJHN YDQQDN D] |QNpQWHV PHJiOODSRGiVRN DONDOPD]iViUD D N|UQ\H]HWSROLWLND iOWDO PHJIRJDOPD]RWW N|UQ\H]HWYpGHOPL FpORN PHJYDOy VtWiViQDNHOVHJtWpVpKH] .LPXWDWMXNKRJ\KLiQ\R]QDND]RND]DODSYHW V]DEiO\RNDPHO\HN OHKHWYp WHQQpN KRJ\ D] iOODPLJD]JDWiV V]HU]GpVHV PHJiOODSRGiVW NH]GHPpQ\H]]HQ pV N|VV|QYDODPHO\±HVHWQNEHQN|UQ\H]HWYpGHOPL±FpOHOpUpVHpUGHNpEHQ
$PiVRGLNUpV]EHQDQHP]HWN|]LHOPpOHWLPHJN|]HOtWpVHNHWWHNLQWMNiWDPHO\HND]WNXWDWWiN KRJ\PHO\IHOWpWHOHNWHOMHVOpVHHVHWpQpUYpQ\HVtWKHWHND]|QNpQWHVPHJiOODSRGiVRN HOQ\HL D]HJ\pEV]DEiO\R]iVLPHJROGiVRNNDOV]HPEHQ
$ KDUPDGLN UpV]EHQ D QHP]HWN|]L J\DNRUODWEDQ DONDOPD]iVUD NHUOW |QNpQWHV PHJiOODSR GiVRNUyOV]yOyNLPXWDWiVRNDWVWDWLV]WLNiNDWIRJODOMXN|VV]HDQQDNYL]VJiODWDFpOMiEyOKRJ\D QHP]HWN|]L SpOGiN DODSMiQ OHKHWH D]RQRVtWDQL RO\DQ V]DNWHUOHWHNHW DPHO\HN D KD]DL DONDOPD]iV HONpV]tWpVHNRU IRJyG]yW MHOHQWKHWQHN D] HOQ\|V V]DNWHUOHWHN iJD]DWRN NLYiODV]WiViKR]
(]W N|YHWHQ YLVV]DWpUQN D KD]DL J\DNRUODWKR] PpJSHGLJ D N|UQ\H]HWYpGHOPL WHUYH]pVKH]
DPHO\HW RO\DQ ROGDOUyO SUyEiOXQN PHJUDJDGQL DPHO\ PHJPXWDWMD KRJ\ D N|UQ\H]HWYpGHOPL FpORNWHOMHVtWpVpKH]PLO\HQPpUWpNEHQNtYiQWiNDJD]GiONRGyLV]IpUiWEHYRQQL+DDWHUYH]pV VRUiQMHOHQWVPpUWpN& PDJiQIRUUiVVDO V]iPROHJ\N|UQ\H]HWYpGHOPL IHODGDWIHODGDWFVRSRUW HOLUiQ\]DWD HQQHN UHDOL]iOiViKR] Q\tOYiQ PHJIHOHO YpJUHKDMWiVL PHFKDQL]PXVQDN LV NHOO OHQQLH $ PDJiQIRUUiVRN WpQ\OHJHV UHQGHONH]pVUH iOOiViW HGGLJ HOPpOHWLOHJ YDJ\ YDODPHO\
MRJV]DEiO\L HOtUiVEyO N|YHWNH] N|WHOH]HQ WHOMHVtWHQG ± pV D J\DNRUODWEDQ LV YiUKDWyDQ NLNpQ\V]HUtWHWW±IHODGDWWiPDV]WRWWDDOiYDJ\YDODPLO\HQ|V]W|Q]pVLPHFKDQL]PXVJD]GDViJL
V]DEiO\R]yHV]N|] EL]WRVtWRWWD 6]iPRV HVHWEHQ D]RQEDQ D WHUYH]pV FVDN D N|UQ\H]HWYpGHOPL FpORNHOpUpVpKH]V]NVpJHVIRUUiVQDJ\ViJiEyOLQGXOWNL$PHQQ\LEHQD]RQEDQDJD]GiONRGyL V]IpUD QHP OiW ]OHWLOHJ LV PHJWpUOpVW D] DGRWW WHUOHWHQ W|UWpQ IHMOHV]WpVEHQ pV D] HOEEL NpQ\V]HUtW YDJ\ |V]W|Q] PHFKDQL]PXVRN LV KLiQ\RVDN DNNRU Q\LOYiQ YDODPLIpOH PHJiOODSRGiVN|WpVHEL]WRVtWKDWMDDYpJUHKDMWiVWYDJ\LVDPDJiQIRUUiVRNWpQ\OHJHVEHYRQiViW DN|UQ\H]HWYpGHOPLFpOUD
( NLHPHOW WHUOHWHN EHD]RQRVtWiViW N|YHWHQ D OHJLQNiEE pULQWHWW iJD]DWRNUD HVHWWDQXOPiQ\RNDW NpV]tWHWWQN UpV]EHQ D V]DNWHUOHWHN NpSYLVHOLYHO NpV]tWHWW LQWHUM~N DODSMiQ UpV]EHQ D UHQGHONH]pVUH iOOy DGDWRNDW IHOKDV]QiOYD (]HNHQ D] HVHWWDQXOPiQ\RNRQ NHUHV]WO D] HJ\HV UpV]WHUOHWHN VSHFLiOLV SUREOpPiLQDN HOHP]pVH DODSMiQ YRQMXN OH D N|YHWNH]WHWpVHLQNHW D] |QNpQWHV PHJiOODSRGiVRNNDO NDSFVRODWEDQ 9pJO SHGLJ D]RNDW D WRYiEEL NXWDWiVL LUiQ\RNDW MHO|OMN NL DPHO\HNUH D V]DEiO\R]y KDWyViJQDN PLQGHQNpSS V]NVpJHOHV]D]|QNpQWHVPHJiOODSRGiVRNDONDOPD]iViQDNPHJNH]GpVpKH]
$ WDQXOPiQ\ HONpV]tWpVH VRUiQ QDJ\EDQ WiPDV]NRGWXQN D] EHQ OHIRO\WDWRWW H WpPiEDQ WXGRPiVXQNV]HULQWHOVKD]DLNXWDWiV.HUHNHVHWDOHUHGPpQ\HLUHLV$]HPOtWHWWWDQXOPiQ\
HJ\UpV]WDODSRViWWHNLQWpVWDGRWWDQHP]HWN|]L±2(&'(8±WDSDV]WDODWRNUyOWRYiEEiNLWpUW D PDJ\DU J\DNRUODWL NH]GHPpQ\H]pVHNUH LV LQWHUM~N DODSMiQ t]HOtWW DGRWW D V]DEiO\R]y KDWyViJRN YpOHPpQ\pUO YDODPLQW LQWHUM~N pV NpUGtYHV YL]VJiODW VHJtWVpJpYHO HOVVRUEDQ D YiOODODWRN iOOiVSRQWMiW PpUWH IHO D] |QNpQWHV PHJiOODSRGiVRN DONDOPD]KDWyViJiUyO pV D YiOODODWL N|UQ\H]HWL PHQHG]VPHQW PLQGD]RQ WpQ\H]LUO PHO\HN D PHJiOODSRGiVRN MDYDVROKDWy KDWyN|UpW IHOWpWHOHLW EHIRO\iVROMiN -HOHQ WDQXOPiQ\ NLGROJR]iVL PyGV]HUH DQQ\LEDQHOWpUD]HPOtWHWWWDQXOPiQ\pWyO.HUHNHVHWDOKRJ\QHPHOVVRUEDQDYiOODODWL J\DNRUODW IHOO LQGtWMD D YL]VJiOyGiVW EiU D YiOODODWL LQWHUM~NUD LWW LV V]NVpJ YROW KDQHP HJ\UpV]W D ± MiWpNHOPpOHWUH pSO ± UpV]OHWHVHEE V]DEiO\R]iVL HOPpOHW ROGDOiUyO PiVUpV]W D KD]DL PHJOpY MRJV]DEiO\L pV MRJV]DEiO\DONDOPD]iVL ROGDOUyO NHUHVL D] |QNpQWHV PHJiOODSRGiVRNOHKHWVpJHLWVSUyEiOHJ\EHQUiPXWDWQLDEXNWDWyNUDLV
-RJV]DEiO\LKiWWpU
$ PDJ\DU N|]LJD]JDWiV V]iPiUD D V]DEiO\R]iVL V]HUHSN|U HOOiWiViKR] UHQGHONH]pVUH iOOy HV]N|]WiUEyOKLiQ\]LNDN|]LJD]JDWiVLV]HU]GpVHNN|WpVpQHNOHKHWVpJH$KD]DLMRJUHQGV]HU iOWDO OpWUHKR]RWW MRJLQWp]PpQ\HN N|]p QHP OHKHW SUREOpPDPHQWHVHQ LOOHV]WHQL RO\DQ PHJiOODSRGiVRN PHJN|WpVpW DPHO\ D UpV]WYHY N|]LJD]JDWiVL V]HUYUH pV D V]HU]G JD]GiONRGyNUDHJ\DUiQWDNpWIpODONXIRO\DPDWiQDN HUHGPpQ\HNpQW DGyGyN|WHOH] pUYpQ\&
UHQGHONH]pVHNHW WDUWDOPD] ,O\HQ OHKHWVpJ QpONO Q\LOYiQYDOyDQ PiU D] HUUH LUiQ\XOy WiUJ\DOiVRNDWVHPOHKHWpVV]HU&HQPHJNH]GHQL+DDN|]LJD]JDWiVLV]HUYQHPYiOODOKDWRO\DQ ILQDQV]tUR]iVL NRRUGLQiOiVL HOOHQU]pVL pV HJ\pE IHODGDWRNDW D PHJiOODSRGiV NHUHWpEHQ DPHO\HN QHP WHOMHVOpVH HVHWpQ D PHJiOODSRGiVEDQ UpV]W YHY JD]GiONRGyN MRJRUYRVODWRW NpUKHWQHN V]DQNFLyNDW DONDOPD]KDWQDN DNNRU QHP IRJQDNN VHP V]DQNFLRQiOKDWy UpV]W YiOODOQLDNLW&]|WWFpORNHOpUpVpEHQ
$] |QNpQWHV HJ\H]VpJUH W|UHNY PHJiOODSRGiVRN MHOHQOHJ LV OpWUHM|KHWQHN HJ\ YDJ\ W|EE JD]GiONRGy pV YDODPHO\ ]|OG V]HUYH]HW YDJ\ V]DNPDL V]|YHWVpJ N|]|WW LOOHWYH HJ\ V]DNPDL V]|YHWVpJ Q\LODWNR]DWRW WHKHW EL]RQ\RV N|UQ\H]HWYpGHOPL FpORN WHOMHVtWpVpUO PHJKDWiUR]RWW WDJYiOODODWDL iOWDO GH D] LO\HQ PHJiOODSRGiVQDN YDJ\ Q\LODWNR]DWV]HU& YiOODOiVQDN N|]LJD]JDWiVL V]HUY QHP OHKHW UpV]HVH OHJDOiEELV RO\DQ UpV]HVH DPHO\HW YDODPLO\HQ N|WHOH]HWWVpJ WHUKHO D] iOWDOiQRV MRJL HOtUiVRNWyO HOWpU N|UQ\H]HWYpGHOPL WHOMHVtWPpQ\
HOIRJDGiViW LOOHWHQ YDJ\ NO|Q|VHQ D] HVHWOHJHV NHGYH]PpQQ\HO PHQWHVVpJJHO W|UWpQ HOOHQWpWHOH]pVpYHO NDSFVRODWEDQ $]RN D] HGGLJL PHJiOODSRGiV NH]GHPpQ\H]pVHN DPLNRU LO\HQ WtSXV~ NH]GHPpQ\H]pVEHQ YDODPHO\ N|]LJD]JDWiVL V]HUY LV UpV]W YHWW D MHOHQOHJL MRJV]DEiO\L NHUHWHN N|]|WW iOWDOiEDQ QHP V]iQGpNROW PHOOpNKDWiVRNNDO MiUWDN DPHO\HNHW D WDQXOPiQ\DIHMH]HWEHQWiUJ\DO
0LN D]RN D MRJV]DEiO\RN PHO\HN D] |QNpQWHV PHJiOODSRGiVRN DODSYHW HOtUiVDLW DONDO PD]iVXNNHUHWHLWPHJKDWiUR]KDWQiN"
$ MRJDONRWiVUyO V]yOy pYL ;, W|UYpQ\ D NO|QE|] V]LQW& MRJV]DEiO\RNUD D V]DEiO\DONRWiVUDYRQDWNR]yV]DEiO\RNPHOOHWWPHJDGMDD]iOODPLLUiQ\tWiVHJ\pEMRJLHV]N|]HLW LV(]HND]HJ\pEHV]N|]|NDN|YHWNH]NOHKHWQHNKDWiUR]DWXWDVtWiVMHJ\EDQNLUHQGHONH]pV VWDWLV]WLNDL N|]OHPpQ\ MRJL LUiQ\PXWDWiV 6]HU]GpV PHJiOODSRGiV N|WpVpW ± DPLUH SROJiUL MRJLDODSRQWHUPpV]HWHVHQ PLQGHQV]HPpO\QHN MRJLV]HPpO\QHN OHKHWVpJHYDQ±WHKiWQHP
WHNLQWL D] iOODPL LUiQ\tWiV HV]N|]pQHN $] HJ\pE HV]N|]|N N|]O WDUWDOPLODJ D MRJL LUiQ\PXWDWiV pUGHPHO EL]RQ\RV PpUWpNLJ ILJ\HOPHW D WpPiQN V]HPSRQWMiEyO (] XWyEELUD D W|UYpQ\DN|YHWNH]VSHFLiOLVV]DEiO\RNDWKDWiUR]]DPHJ
$]2UV]iJJ\&OpVpVD.RUPiQ\LUiQ\HOYHWERFViWNLDPHO\EHQiOWDOiQRVpUYpQ\&FpORNDWSURJUDPRNDW KDWiUR] PHJ LOOHWOHJiOOiVWIRJODO D]iOODPLpVDWiUVDGDOPLpOHWIRQWRV NpUGpVHLEHQ(] D] LUiQ\HOY D 0DJ\DU .|]O|Q\EHQN|]]pWHKHW
$PLQLV]WHUpVD]RUV]iJRVKDWiVN|U&V]HUYYH]HWMHLUiQ\HOYHWpVWiMpNR]WDWyWDGKDWNL
$]LUiQ\HOYDMiQOiVWDGDMRJV]DEiO\YpJUHKDMWiViQDNILUiQ\iUDpVPyGV]HUpUH
$WiMpNR]WDWyRO\DQWpQ\WpVDGDWRWN|]|ODPHO\HWDMRJV]DEiO\YpJUHKDMWiVipUWIHOHOVV]HUYQHNDIHODGDWD WHOMHVtWpVpKH]LVPHUQLHNHOO
$]LUiQ\HOYpVDWiMpNR]WDWyD]D]WNLDGyV]HUYKLYDWDORVODSMiEDQN|]]pWHKHW
$]2UV]iJJ\&OpVpV.RUPiQ\iOWDONLDGRWWLUiQ\HOYWHKiWD]|QNpQWHVPHJiOODSRGiVQDNWXODM GRQNpSSHQD]HJ\LNDODSHOHPpWMHOHQWKHWLD]iOODPUpV]pUOD]HOpUQLNtYiQWFpOWSURJUDPRW IRJDOPD]]D PHJ 1LQFV D]RQEDQ V]y D SDUWQHUHN pUGHNHLUO pV DUUyO D PHFKDQL]PXVUyO DKRJ\DQD±YDOyV]tQ&OHJHOWpU ±pUGHNHNHWHJ\H]WHWYHV]NVpJHVHWpQNRPSURPLVV]XPRNDW NLDODNtWYD D FpORN YpJUHKDMWiViUyO ± LGHpUWYH D FVDWODNR]iV Q\LOYiQRVViJ HOOHQU]pV VWE V]DEiO\DLWLV±PHJiOODSRGQiQDN
$]iOODPLJD]JDWiVL HOMiUiViOWDOiQRVV]DEiO\DLUyO V]yOy pYL ,9W|UYpQ\ÈH VHP DGMD PHJ D N|]LJD]JDWiVQDN D OHKHWVpJHW D] |QNpQWHV PHJiOODSRGiV PHJN|WpVpUH 3HGLJ H W|UYpQ\ OHIHNWHWHWW FpOMD KRJ\ D N|]LJD]JDWiVL V]HUYHN KDWyViJL HOMiUiViQDN V]DEiO\R]iViYDO HOVHJtWVH D] iOODPLJD]JDWiVL IHODGDWRN HUHGPpQ\HV HOOiWiViW (QQHN D DODSMiQ iOODP LJD]JDWiVLHOMiUiVD]J\IpONpUHOPpUHEHMHOHQWpVpUHQ\LODWNR]DWiUDDWRYiEELDNEDQNpUHOHP YDJ\ KLYDWDOEyO LQGXOKDW PHJ HVHWOHJ D IHOHWWHV V]HUY D N|]LJD]JDWiVL V]HUYHW D] HOMiUiV PHJLQGtWiViUD YDJ\ IRO\WDWiViUD XWDVtWKDWMD $]RQEDQ PHJiOODSRGiV V]HU]GpV N|WpVpW D W|UYpQ\QHPLVPHULD]iOODPLJD]JDWiVLHOMiUiVNHUHWHLN|]|WW
$]ÈHEHNH]GpVHGHILQLiOMDD]HJ\H]VpJOHKHWVpJpWD]RQEDQH]D]HOMiUiVEDQ pULQWHWWIHOHNN|]|WWLHJ\H]VpJUHYRQDWNR]LNQHPSHGLJDN|]LJD]JDWiVLV]HUYpVYDODPHO\PiV IHOHNN|]|WWLPHJiOODSRGiVUD
ËJ\ D MHOHQOHJL V]DEiO\R]iV V]HULQW KD D MRJV]DEiO\ HOUHQGHOL YDJ\ D] J\ WHUPpV]HWH PHJHQJHGLDN|]LJD]JDWiVLV]HUYQHNDG|QWpVHOWWPHJNHOONtVpUHOQLHHJ\H]VpJOpWUHKR]iViW +DD]HJ\H]VpJPHJIHOHODMRJV]DEiO\QDNpVQHPVpUWLDIHOHNYDJ\PiVRNMRJRVpUGHNpWD N|]LJD]JDWiVLV]HUYD]HJ\H]VpJHWMyYiKDJ\MDLOOHWOHJKDWiUR]DWEDIRJODOMDHOOHQNH]HVHWEHQ
D] HOMiUiVW IRO\WDWMD 9LV]RQW PDJiQDN D N|]LJD]JDWiVL V]HUYQHN D IHOHNNHO PHJiOODSRGiV N|WpVpUHH]WHUHGPpQ\H]WiUJ\DOiVIRO\WDWiViUDD]ÈHQHPDGOHKHWVpJHW
$]ÈOODPLJD]JDWiVLHOMiUiVUyOV]yOyW|UYpQ\V]HUHSpUOWDUWDOPiUyODQQDNVRNV]RULPyGRVtWiVD HOOHQpUH LV RO\DQ pUWpNtWpOHWHN WDSDV]WDOKDWyN D N|]LJD]JDWiVL MRJEDQ PpUYDGy V]DNpUWN UpV]pUOKRJ\DW|UYpQ\QHPNpSHVHOV]DNDGQLDPHJDONRWiVDLGHMpQMHOOHP]N|UOPpQ\HNWO pV PpJ D ÄKDJ\RPiQ\RV´ iOODPLJD]JDWiVL KDWyViJL HV]N|]|N DONDOPD]iVL V]DEiO\DL LV HJ\UH NHYpVEp NpSHVHN PHJIHOHOQL D] ~M NLKtYiVRNQDN QHP LV HPOtWYH SpOGiXO D] Ä|QNpQWHV PHJiOODSRGiVRNDW´ $] ÈOODPLJD]JDWiVL HOMiUiVUyO V]yOy W|UYpQ\QHN HJ\ ~M W|UYpQQ\HO YDOy WHOMHVIHOYiOWiViUyOpYHNyWDIRO\QDNHONpV]OHWHND]RQEDQWpQ\OHJHVHUHGPpQ\QpONOËJ\D GHFHPEHULJWHUMHGLGV]DNUDYRQDWNR]yMRJKDUPRQL]iFLyVSURJUDPUyOpVDSURJUDP YpJUHKDMWiViYDO |VV]HIJJ IHODGDWRNUyO V]yOy W|EEV]|U PyGRVtWRWW ,;
.RUPiQ\KDWiUR]DW LV FVDN D] ÈOODPLJD]JDWiVL HOMiUiVUyO V]yOy W|UYpQ\ PyGRVtWiViW W&]L NL QHPN|UQ\H]HWYpGHOHPPHONDSFVRODWRVRNEyO
-HOHQ WDQXOPiQ\ V]HPSRQWMiEyO D] ÈOODPLJD]JDWiVL HOMiUiVUyO V]yOy W|UYpQ\ HVHWOHJHV PyGRVtWiViQNHUHV]WODV]DEiO\R]iVD]RQ DSRQWRQMDYtWKDWyDPHO\±PLQWOiWWXN± DIHOHN N|]|WWLHJ\H]VpJN|WpVUHpVDQQDNDN|]LJD]JDWiVLV]HUYiOWDOLMyYiKDJ\iViUDYRQDWNR]LN$]
HUUHYRQDWNR]yNRUOiWR]RWWKDWyHUHM& MDYDVODWNLGROJR]iViKR]WHUPpV]HWHVHQHOEEWHOMHVtWHQL NHOOD%HYH]HWpVSRQWMDLEDIRJODOWNXWDWiVLFpORNDW
$N|UQ\H]HWYpGHOPpUOV]yOypYL/,,,W|UYpQ\VHPDGNRQNUpWMDYDVODWRWD]|QNpQWHV PHJiOODSRGiVRNHV]N|]pQHNDQQDNIDMWiLQDNDONDOPD]iViUDQHPLVHPOtWLPHJD]|QNpQWHV PHJiOODSRGiVRN N|WpVpQHN OHKHWVpJpW HOVHJtWpVpW gVV]HVHQ D]W tUMD HO KRJ\ D N|UQ\H]HWYpGHOPLFpORNHOpUpVpEHQDOHJKDWpNRQ\DEEPHJROGiVWNHOODONDOPD]QL
(]DPHJKDWiUR]iVWHKiWD]WLVMHOHQWKHWQpKRJ\KDD]|QNpQWHVPHJiOODSRGiVDONDOPD]iViQDN YDODPLO\HQ HOQ\H D]RQRVtWKDWy D .|UQ\H]HW YpGHOPpUO V]yOy W|UYpQ\EHQ IHOVRUROW KDJ\RPiQ\RV KDWyViJL YDJ\ DNiU JD]GDViJL V]DEiO\R]y HV]N|]|NNHO V]HPEHQ DNNRU D]
LO\HQIDMWD PHJROGiVW NHOO DONDOPD]QL $]RQEDQ PLYHO VHP D .WEHQ VHP PiVLN PDJ\DU MRJV]DEiO\EDQ QLQFV D N|]LJD]JDWiVL V]HU]GpV LQWp]PpQ\H GHILQLiOYD tJ\ D] HV]N|]
DONDOPD]iViKR]H]VHPMHOHQWNLLQGXOySRQWRW
$N|UQ\H]HWYpGHOHPV]DNWHUOHWHLN|]OD]HOP~OWHJ\NpWpYEHQKDWiO\EDOpSHWWW|UYpQ\HNHW WHNLQWYH D KXOODGpNJD]GiONRGiVL W|UYpQ\ PiU KDV]QiOMD D] |QNpQWHV PHJiOODSRGiV
LQWp]PpQ\pWGHH]WRYiEEUDLVFVDNNpWSLDFLV]HUHSO N|]|WWLYLV]RQ\WIHMH]NLDPHO\QHND N|]LJD]JDWiVLV]HUYQHPUpV]HVH
$ KXOODGpNJD]GiONRGiVUyO V]yOy pYL ;/,,, W|UYpQ\D N|YHWNH]NHW WDUWDOPD]]D D]
HPOtWHWWPHJiOODSRGiVUyO
$ J\iUWy N|WHOHV NO|Q MRJV]DEiO\EDQ PHJKDWiUR]RWW WHUPpNHNUH YDJ\ WHUPpNFVRSRUWRNUD D] RWW PHJiOODStWRWW DUiQ\EDQ pV IHOWpWHOHN PHOOHWW D] iOWDOD EHOI|OG|Q IRUJDOPD]RWW WHUPpNEO V]iUPD]y KXOODGpNRW LOOHWOHJ D KDV]QiOW WHUPpNHW D IRUJDOPD]yWyO D IRJ\DV]WyWyO YLVV]DIRJDGQL LOOHWOHJ YLVV]DYiOWDQL DQQDN
~MUDKDV]QiODWDKDV]QRVtWiVDYDJ\N|UQ\H]HWNtPpOiUWDOPDWODQtWiVDpUGHNpEHQ
$] ~MUDKDV]QiODWUD KDV]QRVtWiVUD YDJ\ iUWDOPDWODQtWiVUD YLVV]DYHHQG KDV]QiOW WHUPpNHN KXOODGpNRN IDMWiLW D YLVV]DYpWHOL pV KDV]QRVtWiVL DUiQ\RNDW pV D]RN WHOMHVtWpVpQHN KDWiULGHMpW D] pULQWHWW J\iUWyN pV IRUJDOPD]yN iOWDO OpWUHKR]RWW WDQiFVDGy WHVWOHWHN MDYDVODWiQDN ILJ\HOHPEHYpWHOpYHO D .RUPiQ\ UHQGHOHWEHQ iOODStWMDPHJ
$J\iUWyVDMiWG|QWpVHDODSMiQLVYLVV]DIRJDGKDWMDYLVV]DYiOWKDWMDD IRUJDOPD]yWyOYDJ\DIRJ\DV]WyWyOD WHUPpNpEOV]iUPD]yKXOODGpNRWYDJ\KDV]QiOWWHUPpNpWLOOHWOHJHQQHNHOVHJtWpVpUHDWHUPpNIRUJDOPD]yLYDO
|QNpQWHVPHJiOODSRGiVWN|WKHW
$ J\iUWy D] EHNH]GpVEHQ PHJKDWiUR]RWW YLVV]DYpWHOL N|WHOH]HWWVpJpQHN WHOMHVtWpVpW LOOHWOHJ D EHNH]GpVV]HULQWL|QNpQWHVYLVV]DYpWHOWDPHJRV]WRWWIHOHOVVpJHOYHDODSMiQNO|QMRJV]DEiO\EDQPHJKDWiUR]RWW IHOWpWHOHNNHOPHJiOODSRGiVEDQ±UpV]EHQYDJ\HJpV]EHQ±iWUXKi]KDWMDDIRUJDOPD]yUDYDJ\D]DUUDIHOMRJRVtWRWW KXOODGpNNH]HOUH$PHJiOODSRGiVWMyYiKDJ\iVUDEHNHOOQ\~MWDQLDN|UQ\H]HWYpGHOPLKDWyViJQDN
$ J\iUWy D WHYpNHQ\VpJpEO V]iUPD]y KXOODGpNDLUyO YDODPLQW EHNH]GpV DODSMiQ YLVV]DYHWW KXOODGpNUyODKXOODGpNELUWRNRVDN|WHOH]HWWVpJHLQHNPHJIHOHOHQN|WHOHVJRQGRVNRGQL
.|]HOHEEUO YL]VJiOYD D EHNH]GpV N|YHWNH]WpEHQ D] |QNpQWHV PHJiOODSRGiV NLWHUMHGKHW DNiU D N|WHOH]HQ YLVV]DYHHQG WHUPpNHN KXOODGpNRN DNiU D] HJ\pE WHUPpNHN KXOODGpNRN YLVV]DYpWHOLpV~MUDKDV]QiODWLKDV]QRVtWiVLYDJ\iUWDOPDWODQtWiVLN|WHOH]HWWVpJpQHNDIRUJDO PD]yQDNYDJ\DIHOMRJRVtWRWWKXOODGpNNH]HOQHNYDOyiWDGiViUD$OHJIRQWRVDEENpUGpVEHQD N|WHOH] WHUPpNKXOODGpNN|UNLYiODV]WiViEDQD]RQEDQQLQFVV]HUHSHD]pULQWHWWHNPHJiOODSR GiViQDN D] .RUPiQ\UHQGHOHWEHQ OHV] PHJKDWiUR]YD FVXSiQ D WDQiFVDGy WHVWOHW MDYDVODWD MHOHQWKHWLDPHJiOODSRGiVRVHV]N|]FVtUiMiWDNpVEELHNEHQ
0iVUpV]W D KDWyViJL MyYiKDJ\iV IHOWpWHOHLWO V]DEiO\DLWyO IJJ PDMG KRJ\ D KDWyViJ PHQQ\LEHQ EHIRO\iVROKDWMD D PHJiOODSRGiV WDUWDOPiW D NLYiODV]WRWW IRUJDOPD]y YDJ\
KXOODGpNNH]HOV]HPpO\pWVWE0pJHUWHOMHVKDWyViJLNRQWUROOHVHWpQVHPPLQVODKDWyViJ D PHJiOODSRGiV UpV]WYHYMpQHN VDMiW IHODGDWRNNDO IHOHOVVpJJHO LOOHWYH HVHWOHJHV VDMiWRV V]HU]GpVV]HJpVL V]DQNFLyNNDO $ V]DEiO\R]iV YiUKDWy SUREOpPiMD XJ\DQDNNRU QHP LV D]
HVHWOHJHVW~O]RWWDQUpV]OHWH]HWW MyYiKDJ\iVL IHOWpWHOHNEHQ UHMOLN KDQHPLQNiEEIRUGtWYDKD D OHHQG MRJV]DEiO\V]DEDGNH]HWKDJ\DKDWyViJQDND]RQEDQD]±MRJLODJUpV]OHWH]HWWV]DNPDL pUYDQ\DJ KLiQ\iEDQ ± QHP IRJMD YiOODOQL D PHJiOODSRGiV HOXWDVtWiViQDN NRFNi]DWiW (UUH D KHO\]HWUHDN|UQ\H]HWYpGHOPLV]DEiO\R]iVV]iPRVWHUOHWpUOKR]KDWySpOGDV]HPSRQWXQNEyO OHJMHOOHP]EEDWHUPpNGtMDVV]DEiO\R]iVWHUOHWpUO
.RUiEEDQ PiU D N|UQ\H]HWYpGHOPL WHUPpNGtMUyO WRYiEEi HJ\HV WHUPpNHN N|UQ\H]HW YpGHOPL WHUPpNGtMiUyO V]yOy pYL /9, W|UYpQ\ LV D PHJiOODSRGiVRNKR] KDVRQOy OHKHWVpJHW DGRWW SLDFL V]HUHSONQHN DPHQQ\LEHQ D] ~Q NH]HOpVW NRRUGLQiOy V]HUYH]HWWHO V]HU]GpVWN|W|WWDWOHV]iUPD]yKXOODGpNNH]HOpVpUHDNNRUEL]RQ\RVPHQWHVVpJHWV]HU]HWWD GtMIL]HWpVDOyO
7HUPpNGtMDWNHOOIL]HWQLDFVRPDJROyHV]N|]|NXWiQDWRYiEELDNEDQ&VNW
.O|Q MRJV]DEiO\EDQ PHJKDWiUR]RWW IHOWpWHOHNNHO D EHNH]GpVEHQ PHJKDWiUR]RWW PpUWpN& PHQWHVVpJ V]HUH]KHW D &VNW D]RQ UpV]H DOyO DPHO\UH YRQDWNR]yDQ D N|WHOH]HWW D WHUPpNGtMN|WHOHV FVRPDJROyHV]N|]pW YLVV]DJ\&MWL YLVV]DYiViUROMD pV ~MUDKDV]QiOMD YDJ\ ~MUDIHOGROJR]]D YDJ\ HQHUJLDQ\HUpVUH IHOKDV]QiOMD D WRYiEELDNEDQ HJ\WW NH]HOL .H]HOpVQHN PLQVO D FVRPDJROyHV]N|] J\iUWyMD LOOHWYH LPSRUWiOyMD HOVGOHJHV N|WHOH]HWW V]iPiUD HJ\ NH]HOpVW NRRUGLQiOy V]HUYH]HWWHO N|W|WW YDODPLQW D] pUWpNHVtWHWW FVRPDJROyHV]N|] YHYMpYHO N|W|WW V]HU]GpV DPHO\EHQ D] HOVGOHJHV N|WHOH]HWWO D WHUPpNGtMIL]HWpVL N|WHOH]HWWVpJHWDNH]HOpVWNRRUGLQiOyV]HUYH]HWYDJ\DFVRPDJROyHV]N|]YHYMHPiVRGODJRVN|WHOH]HWWHN iWYiOODOMD
7HOMHV PHQWHVVpJ V]HUH]KHW D &VNW DOyO KD D NO|Q MRJV]DEiO\EDQ PHJKDWiUR]RWW N|WHOH] NH]HOpVL DUiQ\QDNPHJIHOHO PHQQ\LVpJ& FVRPDJROyHV]N|]WNH]HOWDN|WHOH]HWW$PHQWHVVpJPHJKDWiUR]iVDNRUDNH]HOW FVRPDJROyHV]N|]DUiQ\pVDN|WHOH]NH]HOpVLDUiQ\KiQ\DGRViWNHOOILJ\HOHPEHYHQQL
$ EHNH]GpVEHQ PHJKDWiUR]RWW NH]HOpVW NRRUGLQiOy V]HUYH]HW RO\DQ MRJL V]HPpO\ DPHO\ D FVRPDJROyHV]N|]|N NH]HOpVpW V]HUYH]L YpJ]L pV DPHO\ D FVRPDJROyHV]N|] J\iUWyLQDN IRUJDOPD]yLQDN UpV]YpWHOpYHOM|WWOpWUH
$] LWW PHJMHOHQ IHQ\HJHWHWWVpJ WHUPpNGtMIL]HWpVL N|WHOH]HWWVpJ LOOHWYH SpQ]J\L|V]W|Q]N PHQWHVVpJV]HUHSpQHNIRQWRVViJiWDIHMH]HWHOHP]pVHLPXWDWMiNEH6]pOHVHEENLWHNLQ WpVEHQ LV D KXOODGpNNH]HOpVEHQ D] |QNpQWHV PHJiOODSRGiV OHKHWVpJHLUO ± HQQHN NLHPHOW IRQWRVViJDPLDWW±XJ\DQRWWDIHMH]HWEHQPpJUpV]OHWHVHQV]yHVLN$]HO]NpUGpVKH]D KXOODGpNNH]HOpVLWHKHU|QNpQWHVPHJiOODSRGiVEDQYDOyiWDGiViQDNKDWyViJL MyYiKDJ\iViKR]
YDOyNDSFVROyGiVPLDWWLWWFVDNDPiVRGODJRVN|WHOH]HWWiWYiOODOiVLV]DEiO\R]iViWHPHOMNNL
$PiVRGODJRVN|WHOH]HWWiOWDOLWHUPpNGtMIL]HWpVLWHKHUiWYiOODOiVDHOYLOHJIJJHWOHQDWWyOKRJ\
DPiVRGODJRVN|WHOH]HWWDWHUPpNGtMDWPHJIRJMDIL]HWQLYDJ\DPHQWHVVpJHWIRJMDPHJFpOR]QL
$&VNWEHNH]GpVEHQKLYDWNR]RWWNO|QMRJV]DEiO\WDNRUPiQ\]DWHJ\GDUDELJFVDN
~J\pUWHOPH]WHKRJ\D]DPHQWHVVpJLV]DEiO\RNDWKLYDWRWWUpV]OHWH]QLD]RQEDQPiMXVWyO
~J\ PyGRVtWRWWD D &VNW YpJUHKDMWiVL UHQGHOHWpW SRQWRVDEEDQ D ,; .RUP UHQGHOHWHWKRJ\DEEDEHpSOWDN|YHWNH]MRJV]DEiO\KHO\
$.WEHNH]GpVHV]HULQWLDIL]HWpVLN|WHOH]HWWVpJiWYiOODOiViWHUHGPpQ\H] PHJiOODSRGiVWD]
LOOHWpNHVN|UQ\H]HWYpGHOPLIHOJ\HOVpJKDJ\MDMyYi$PHJiOODSRGiVD]DGRWWpYGHFHPEHUpLJpUYpQ\HV
$PHJiOODSRGiVQDNWDUWDOPD]QLDNHOOD]HODGypVDYHYDGDWDLWEHMHOHQWODSV]HULQWDWHUPpN.1V]iPiW pV D] H[SRUWpUWpNHVtWpV LOOHWYH EpUJ\iUWiV HVHWpQ D EpUJ\iUWiVW N|YHW pUWpNHVtWpV YiUKDWy PHQQ\LVpJpW D]
iWYiOODOiV LGV]DNiQDN SRQWRV PHJKDWiUR]iViWpV D NH]HOpVW NRRUGLQiOy V]HUYH]HW iOWDO W|UWpQ iWYiOODOiV HVHWpQDNH]HOpVPyGMiWWHFKQROyJLiMiW
$MyYiKDJ\iVIHOWpWHOHLW±DEEDQD]HVHWEHQKDDPiVRGODJRVN|WHOH]HWWDNH]HOpVWNRRUGLQiOy V]HUYH]HW ± D N|UQ\H]HWYpGHOPL IHOJ\HOVpJHN HVHWHQNpQW LJ\HNH]WHN ~J\ pUWHOPH]QL KRJ\
V]DNPDLN|YHWHOPpQ\HNHWLVWiPDV]WKDWQDNDNH]HOpVPyGMiUDWHFKQROyJLiMiUDYRQDWNR]yDQ (] D MRJpUWHOPH]pV D J\DNRUODWEDQ J\RUVDQ PHJEXNRWW V D]yWD WXODMGRQNpSSHQ FVDN D IHOJ\HOVpJHN WiMpNR]WDWiVD W|UWpQLN PHJ D] LO\HQ N|WHOH]HWWVpJiWYiOODOiVRN VRUiQ $ .RUPiQ\UHQGHOHW LO\HQ V]DEiO\R]iVD WHKiW QDJ\REE V]DEDGViJRW KDJ\RWW D JD]GiONRGyN V]iPiUD D PHJiOODSRGiVRN LGHYiJy NRQNUpW WDUWDOPiQDN PHJKDWiUR]iViUD pV NLVHEEHW D KDWyViJV]iPiUDKRJ\D]WEHIRO\iVROKDVVD)RUGtWRWWYLV]RQWDKHO\]HWD]DODSYHWV]DEiO\RNDW LOOHWHQPLYHODWHUPpNGtMDNPpUWpNpQHNpVDUpV]OHWHVNH]HOpVLDUiQ\RNQDNDPHJKDWiUR]iVDD KDWyViJL ROGDORQ PDUDG D JD]GiONRGyN YpOHPpQ\H]pVL MDYDVODWWpWHOL OHKHWVpJpWO HOWHNLQWYHUpV]EHQD JD]GDViJLV]DEiO\R]iV UpV]EHQD KDJ\RPiQ\RV FRPPDQGDQGFRQWURO V]DEiO\R]iV ± GH QHP D] |QNpQWHV PHJiOODSRGiV ± HV]N|]HLYHO UpV]OHWHLEHQ OG D IHMH]HWHW
$NOtPDYpGHOHPPDJ\DURUV]iJLVWUDWpJLiMiUyOV]yOy,;.RUPKDWiUR]DW PiUHJ\pUWHOP&HQDN|]LJD]JDWiVLV]HUYHWLVD]|QNpQWHVPHJiOODSRGiVWOpWUHKR]yIHOHNN|]p VRUROMD(EEHQHJ\LO\HQV]DNWHUOHWLPHJiOODSRGiVOpWUHKR]iViQDNIHOWpWHOHLQHNNLGROJR]iViW IHODGDWNpQW KDWiUR]]D PHJ DQpONO KRJ\ HQQHNiOWDOiQRVMRJV]DEiO\LLQWp]PpQ\LNHUHWHLQHN IHQQiOOiViWEL]WRVtWDQiYDJ\OHJDOiEELVYL]VJiOQi
.L NHOO GROJR]QL NOtPDYpGHOHPUH LUiQ\XOy D JD]GiONRGy V]HUYH]HWHN YDODPLQW N|UQ\H]HWYpGHOPL pV HQHUJHWLNDLKDWyViJRNN|]|WWN|WKHW|QNpQWHVPHJiOODSRGiVRNIHOWpWHOUHQGV]HUpW
)HOHOV N|UQ\H]HWYpGHOPLPLQLV]WHU JD]GDViJLPLQLV]WHU
0DJ\DU(QHUJLD+LYDWDOHOQ|NH
+DWiULG PiUFLXV
$] HQHUJLDV]HNWRU HJ\pENpQW YDOyEDQ D] |QNpQWHV PHJiOODSRGiVRN HJ\LN RO\DQ OHKHWVpJHV WHUOHWH DKRO ± EiU N|]HO VHP SUREOpPDPHQWHVHQ ± YDODPHO\HVW HOUHKDODGW HJ\ |QNpQWHV PHJiOODSRGiVRQ DODSXOy UHQGV]HU NLGROJR]iVD OG .70 UHQGHOHWHW tJ\ H]]HO HJ\
HJpV]IHMH]HWEHQIRJODONR]LND]HOHP]pV
$]|QNpQWHVPHJiOODSRGiVRNMRJV]DEiO\LPHJDODSR]RWWViJiWWHNLQWYH|VV]HVVpJpEHQD]WOHKHW PHJiOODStWDQL KRJ\ D PDJ\DURUV]iJL MRJLQWp]PpQ\HN N|]p QHP pSOW EH D N|]LJD]JDWiVL V]HU]GpV YDJ\LV D V]HU]GpVHNQHN D] D IRUPiMD DPHO\ YDODPHO\ N|]LJD]JDWiVL V]HUY pV
YDODPLO\HQ PiV V]HUYH]HWHN N|]|WW V]DEiO\R]iVL FpOODO M|Q OpWUH +LiQ\]LN HJ\ iWPHQHW MRJLQWp]PpQ\ OHKHWVpJH D SROJiUL W|UYpQ\N|Q\YEHQ HJ\LN OHJUpV]OHWHVHEEHQ V]DEiO\R]RWW V]HU]GpV LQWp]PpQ\H pV D] iOODPLJD]JDWiVL HOMiUiVRN LQWp]PpQ\HL N|]|WW 8J\DQDNNRU D QHP]HWN|]LN|UQ\H]HWLV]DEiO\R]iVEDQHJ\UHLQNiEEHOWpUEHNHUOHQQHNDIDMWDHV]N|]QHND]
DONDOPD]iVD pV D KD]DL V]DEiO\R]iVVDO V]HPEHQ PHJIRJDOPD]RWW HOYiUiVRN KDWpNRQ\ViJ UXJDOPDVViJLVHJ\UHLQNiEENLNpQ\V]HUtWLNHJ\LO\HQOHKHWVpJPHJWHUHPWpVpW$]DODSYHW MRJLQWp]PpQ\L KLiQ\RVViJ D] HJ\LN RND DQQDN KRJ\ D] HGGLJ DONDOPD]RWW LO\HQ MHOOHJ&
HV]N|]|N YDJ\ LQNiEE V]DEiO\R]iVL NH]GHPpQ\HN YLVV]iV PyGRQ OiVG D .70 UHQGHOHW YpJUHKDMWiViQDN HOHP]pVpW YDJ\ VHKRJ\DQ SO D] HPOtWHWW .RUPiQ\KDWiUR]DWVHPYDOyVXOWDNPHJ
$QQDNpUGHNpEHQKRJ\H]HNDPHJROGiVRNPHJIHOHO MRJLDODSRNRQQ\XJRGMDQDNYDODPLQW KRJ\ J|UGOpNHQ\HEEHQ DONDOPD]KDWyN OHJ\HQHN |VV]HJ\&MW|WWN D] |QNpQWHV PHJiOODSR GiVRNNDO NDSFVRODWRV HOPpOHWL PHJN|]HOtWpVHNHW pV QHP]HWN|]L YDODPLQW KD]DL J\DNRUODWL WDSDV]WDODWRNDW(]HNNXWDWiViEyORO\DQN|YHWNH]WHWpVHNHWLVOHOHKHWPDMGYRQQLDPHO\HNEOD V]NVpJHV iOWDOiQRV YDODPLQW NRQNUpW N|UQ\H]HWYpGHOPL MRJV]DEiO\L PyGRVtWiVRN LUiQ\D LV PHJiOODStWKDWyYiYiOLN
$QHP]HWN|]LNXWDWiVRNHUHGPpQ\HLD]|QNpQWHVPHJiOODSRGiVRN DONDOPD]KDWyViJiYDONDSFVRODWEDQ
$ HV pYHN XWROVy KDUPDGiEDQ YHWW OHQGOHWHW DQQDN WXGRPiQ\RV YL]VJiODWD KRJ\ PHO\
V]DNWHUOHWHNHQ PLO\HQ IHOWpWHOHN WHOMHVOpVH HVHWpQ DGyGLN OHKHWVpJ D] |QNpQWHV PHJiOODSRGiVUXJDOPDVViJiEyOV]iUPD]yHOQ\|NNLKDV]QiOiViUD(]HQHOQ\|NHWHNXWDWiVRN HOVVRUEDQ D N|WHOH] HOtUiVRNRQ DODSXOy V]DEiO\R]iVL HV]N|]|N pV D] |QNpQWHV PHJiOODSRGiVRNRQ DODSXOy V]DEiO\R]iV iOWDO RNR]RWW MyOpWL YHV]WHVpJHN |VV]HKDVRQOtWiViQ NHUHV]WOSUyEiOWiNPHJUDJDGQL
$] LURGDORP KiURP RO\DQ HOQ\pW D]RQRVtWMD D] |QNpQWHV HV]N|]|NQHN DPHO\HN UXJDOPDV ViJXNEyODGyGQDN
x D] LSDUiJDN RO\DQ SURDNWtY HJ\WWP&N|GpVHQ DODSXOy PHJN|]HOtWpVH DPHO\
FV|NNHQWLDV]DEiO\R]ypVD]LSDUiJN|]|WWLNRQIOLNWXVW
x QDJ\REE UXJDOPDVViJ pV V]DEDGViJIRN D VSHFLiOLV IHOWpWHOHNKH] LJD]RGy N|OWVpJKDWpNRQ\PHJROGiVRNPHJWDOiOiViEDQ
x D N|UQ\H]HWYpGHOPL FpORN J\RUVDEE HOpUpVH DPLW D] WHV] OHKHWYp KRJ\ D PHJYDOyVtWiVNHYpVEpPDUDGHODFpORNNLMHO|OpVpWO
$]|QNpQWHVPHJiOODSRGiVRNNpWIFVRSRUWMDD]RQRVtWKDWyD]|V]W|Q]NV]HPSRQWMiEyO x DPLNRU D] |QNpQWHV PHJiOODSRGiVEDQ YDOy UpV]YpWHOW YDODPLO\HQ SR]LWtY |V]W|Q]
VHJtWLHON|OWVpJPHJRV]WiVWiPRJDWiV
x DPLNRU D UpV]YpWHOW SR]LWtY |V]W|Q] QpONO YDODPLO\HQ NHGYH]WOHQHEE DOWHUQDWtYD IHQ\HJHWpVH LGp]L HO SpOGiXO HJ\ V]LJRU~EE KDWiUpUWpN V]DQNFLy DGy NLOiWiVED KHO\H]pVH DEEDQ D] HVHWEHQ KD D] |QNpQWHV PHJiOODSRGiVW QHP VLNHUO NHOO KDWyN|UEHQPHJN|WQLYDJ\DQQDNNLW&]|WWFpOMDQHPYDOyVXOPHJ
(] XWyEEL YiOWR]DW HVHWpQ Q\LOYiQYDOyDQ QDJ\REE KDQJV~O\ YDQ D] Ä|QNpQWHVVpJHQ´ EiU D OiWV]DW FVDOKDW YpJV VRURQ QHP LV DQQ\LUD |QNpQW YiODV]WMD D V]HUHSO D PHJiOODSRGiVEDQ YDOyUpV]YpWHOWKDQHPpUGHNHLWOHKHWVpJHLWNRFNi]DWDLWPpUOHJHOYHHJ\V]HU&HQDNpWÄURVV]´
N|]O D NHYpVEp URVV] PHOOHWW G|QW 6]iPRV VLNHUHV |QNpQWHV PHJiOODSRGiV P|J|WW iOOW ± V]RURVDQ KR]]iWDUWR]y SR]LWtY |V]W|Q] QpONO ± D V]LJRU~EE V]DEiO\R]iVVDO YDOy IHQ\HJHWHWWVpJ SO D +ROODQG 1HP]HWL .|UQ\H]HWSROLWLNDL 7HUY DODSMiQ N|W|WW HJ\HV N|]LJD]JDWiVL V]HU]GpVHN YDJ\ D 86$ SURJUDP PtJ D] HOV YiOWR]DWUD D OHJMHOOHP]EE WHUOHW D PH]JD]GDViJL WiPRJDWiVRNNDO |V]W|Q]|WW N|UQ\H]HWEDUiW JD]GiONRGiVLIRUPDHOWHUMHV]WpVH
6HJHUVRQ pV 0LFHOL D V]DEiO\R]y pV D V]HQQ\H] N|]|WWL WiUJ\DOiVRV LQWHUDNFLyW WDQXOPiQ\R]WiN(]HQEHOOD]WHOHPH]WpNKRJ\D]HPOtWHWWIHOHNN|]|WWOHMiWV]yGyLQWHUDNFLyN HUHGPpQ\HNpQWPLO\HQIHOWpWHOHNHVHWpQMXWQDNHOD]|QNpQWHVPHJiOODSRGiVPHJN|WpVpLJ(]W N|YHWHQD]WYL]VJiOWiNPHJKRJ\KDHOMXWQDND]|QNpQWHVPHJiOODSRGiVLJDNNRUD]HQQHN HUHGPpQ\HNpQW HOpUW N|UQ\H]HWL iOODSRW NHGYH]EEH YDJ\ NHGYH]WOHQHEE PLQW D N|WHOH]
HOtUiVRNNDO HOpUKHW iOODSRW OHWW YROQD (]]HO D] HOpUKHW V]HQQ\H]pVHOKiUtWiV PpUWpNpUH WXGWDN N|YHWNH]WHWpVHNHW OHYRQQL 9L]VJiOWiN WRYiEEi D]W LV KRJ\ D V]DEiO\R]iVVDO YDOy IHQ\HJHWHWWVpJ PpUWpNH KRJ\DQ EHIRO\iVROMD D] LQWHUDNFLy YpJHUHGPpQ\HNpQW NLDODNXOy PHJHJ\H]pVW 9pJO D]W LV PHJQp]WpN KRJ\DQ EHIRO\iVROMD D WiUJ\DOiVL IRO\DPDWEDQ D]
DONXSR]tFLy HUHGHWL DOORNiFLyMD EDUJDQLQJ SRZHU D] HJ\H]VpJ NHUHWpEHQ HOpUKHW V]HQQ\H]pVHOKiUtWiVQDJ\ViJiW
$V]HU]NiOWDOKDV]QiOWPRGHOOHJ\MiWpNHOPpOHWLIHQ\HJHWHWWVpJHQWKUHDWDODSXO$IHQ\HJH WHWWVpJDV]LJRURGyV]DEiO\R]iVEHYH]HWpVpQHNYDOyV]tQ&VpJpWMHOHQWLDPRGHOOEHQ$G|QWpVL KHO\]HWDN|YHWNH]DODSYHWHQDV]DEiO\R]yKDWyViJHOG|QWLKRJ\DMiQOHRO\DQN|UQ\H]HW YpGHOPL ÄV]HQQ\H]pVHOKiUtWiVL´ NRQVWUXNFLyW DY HOKiUtWiVL V]LQWWHO DPHO\UO D V]HQQ\H]
HOG|QWKHWL KRJ\ FVDWODNR]LNH DKKR] YDJ\ VHP ( PHOOHWW pUYpQ\HVO D] D KiWWpU IHQ\HJHWHWWVpJ KRJ\ KD QLQFV DMiQODW YDJ\ D]W QHP IRJDGWiN HO DNNRU RO\DQ N|WHOH]
V]DEiO\R]iV OpS pUYpQ\EH DPHO\ PDJDVDEE HOKiUtWiVL V]LQWHW KDWiUR] PHJ D/ (QQHN D EHYH]HWpVH D]RQEDQ PpJ DEEDQ D]W HVHWEHQ VHP EL]WRV V]i]DOpNLJ KD D] |QNpQWHV PHJiOODSRGiV QHP M|Q OpWUH (QQHN OpWUHM|WWpW SdSd NOV pV ± D IHOWpWHOH]pV V]HULQW ± LVPHUW YDOyV]tQ&VpJ MHOOHP]L +D SpOGiXO D] DGRWW V]DNWHUOHWHQ W|UWpQHWLOHJ QHP YROW HUV SROLWLNDL WiPRJDWRWWViJD YDODPHO\ N|WHOH] V]DEiO\R]iV EHYH]HWpVpQHN DNNRU S pUWpNH DODFVRQ\
$ YpJUHKDMWiV N|OWVpJHLW NpW FVRSRUWED RV]WRWWiN NO|QEVpJHW WpYH H]HN N|]|WW D] |QNpQWHV HV]N|]|N LOOHWYH N|WHOH] HOtUiVRN DONDOPD]iVD HVHWpQ ( NpW N|OWVpJFVRSRUW D PHJIHOHOpV N|OWVpJHL D V]HQQ\H]pVHOKiUtWiVL WHFKQROyJLD N|OWVpJHL YDJ\ D] HOPDUDGW KDV]RQ pV D WUDQ]DNFLyVN|OWVpJHNSOEHWDUWDWiVWiUJ\DOiVpVDGPLQLV]WUiFLyN|OWVpJHL
$] HV]N|]|N KDWpNRQ\ViJiW YL]VJiOYD PHJiOODStWRWWiN KRJ\ PLQpO KDWpNRQ\DEE D] DGRWW WHUOHWHQ KDV]QiOW V]DEiO\R]iVL HV]N|] DQQiO NLVHEE OHKHWVpJ YDQ D] |QNpQWHV PHJiOODSRGiVRNNDO D N|UQ\H]HWYpGHOPL PHJIHOHOpV YiUKDWy N|OWVpJHLQHN D FV|NNHQWpVpUH $ PRGHOOEHQD]WWpWHOH]WpNIHOKRJ\DV]DEiO\R]yKDWyViJQDNpVDQRUPDDONRWyWHVWOHWQHNLVD QHWWy WiUVDGDOPL KDV]QRN PD[LPDOL]iOiVD D FpOMD $PLNRU D V]DEiO\R]y KDWyViJQDN HJ\pE FpOMDL LV YDQQDN SO IRUUiVPD[LPDOL]iOiV MiUXOpNV]HGpV YDJ\ D] LSDUiJL pUGHNHN W~O]RWWDQ EHIRO\iVROMiN DNNRU D G|QWpVKR]DWDO ± DQQDN WRU]XOiVDL PLDWW ± D] DGRWW PyGV]HUUHO QHP PRGHOOH]KHW $ WiUVDGDOPL KDV]RQ PD[LPDOL]iOiViEyO D] N|YHWNH]LN KRJ\ D QRUPDDONRWy iOWDO NLOiWiVED KHO\H]HWW HOKiUtWiVL V]LQWQHN D/ RO\DQQDN NHOO OHQQLH DPHO\ HVHWpQ D QHWWy WiUVDGDOPLKDV]RQ16%/PD[LPiOLVYDJ\LV
0D[16%/D %D±7&/D !%¶D/±7&/¶D/
%DKDV]QRNDWD7&DYpJUHKDMWiVWHOMHVN|OWVpJHLWMHO|OL
,O\HQ IHOWpWHO PHOOHWW PiV HOKiUtWiVL V]LQWWHO YDOy IHQ\HJHWpV QHP OHQQH KLWHOHV PHUW KD D]
HJ\pE V]LQWWHO YDOy IHQ\HJHWpVW YDOyEDQ EH NHOOHQH YiOWDQLD DNNRU Q\LOYiQ DUUD OHQQH
WXODMGRQNpSSHQDNRUPiQ\]DWLOOHWpNHViOODPLJD]JDWiVLV]HUYHL WXODMGRQNpSSHQDW|UYpQ\KR]iV
|V]W|Q|]YHKRJ\HOWpUMHQD]D/V]LQWLUiQ\iED$PRGHOOH]HNDODSMiQDN|YHWNH] ÄG|QWpVL IiYDO´tUKDWyOH
iEUD$]|QNpQWHVPHJiOODSRGiVG|QWpVLVpPiMD
1HPNtQiOMDIHOD]|QNpQWHV )HODMiQOMDKRJ\pUMpNHO|QNpQWD]DYV]LQWHW PHJiOODSRGiVWDYV]LQW
HOpUpVpKH]
S S
516%/D/
&pJ&/D/
1HPIRJDGMDHOD] (OIRJDGMDD]
DMiQODWRW DMiQODWRW
516%YDY
&pJ&YDY
S S
516%/D/
&pJ&/D/
)RUUiV6HJHUVRQpV0LFHOOLS
6]DEiO\R]y5
1RUPDDONRWy/
&pJ
1RUPDDONRWy/
$] iEUD NpW G|QWpVL SRQWRW iEUi]RO D V]DEiO\R]y G|QW KRJ\ NtQiOH OHKHWVpJHW D]
|QNpQWHV PHJiOODSRGiVUD D] DY HOKiUtWiVL V]LQW HOpUpVpKH] PDMG D FpJ HOG|QWL KRJ\
HOIRJDGMDHDPHJiOODSRGiVW
$FpJFVDNDEEDQD]HVHWEHQIRJMDHOIRJDGQLDPHJiOODSRGiVWKDD]|QNpQWHVPHJiOODSRGiV HVHWpQ D YiUKDWy N|OWVpJHN DODFVRQ\DEEDN PLQW D S YDOyV]tQ&VpJJHO ÄIHQ\HJHW´ V]LJRU~EE V]DEiO\R]iVHVHWpQ
S&/D/t &YDY
&DFpJW|EEOHWN|OWVpJHLWMHOHQWLD]DGRWWHOKiUtWiVLV]LQWKH]
$ OHJPDJDVDEE HOKiUtWiVL V]LQWHW DPHO\HW D] |QNpQWHV PHJiOODSRGiV NHUHWpEHQ D FpJ HO WXG IRJDGQL
DYPD[ SF/FYD/
0LYHOD N|OWVpJHNDODFVRQ\DEEDN D] |QNpQWHVPHJiOODSRGiVRNQiO tJ\D FpJ DNiU PDJDVDEE HOKiUtWiVLV]LQWHWLVHOIRJDGKDWPLQWDPHO\HWDN|WHOH]HOtUiVPHJV]DEQD
$ V]DEiO\R]y DNNRU KDMODQGy IHODMiQODQL D] |QNpQWHV PHJiOODSRGiVW KD D QHWWy WiUVDGDOPL KDV]QRNPHJKDODGMiND]RNDWDKDV]QRNDWDPLNRUQHPDMiQOMDIHOH]W
16%YDYt S16%/D/
(]HQ IHOWpWHOHN HVHWpQ D PRGHOO EL]RQ\tWMD KRJ\ PLQGHQ S! HVHWpQ D WiUJ\DOiV HJ\HQV~O\L NLPHQHWHOH D] KRJ\ D V]DEiO\]y IHODMiQO HJ\ EL]RQ\RV V]LQW& HOKiUtWiVVDO MiUy |QNpQWHV PHJiOODSRGiVW D FpJ SHGLJ HOIRJDGMD D]W +D D S pUWpNH YDJ\LV WXODMGRQNpSSHQ QLQFV D V]LJRU~V]DEiO\R]iVVDOYDOy J\DNRUODWLIHQ\HJHWHWWVpJDNNRU VHPPLO\HQHOKiUtWiVL V]LQW QHP OHV]HOIRJDGKDWyHJ\LNSDUWQHUQDNVHP
$] HUHGPpQ\HN D]W PXWDWMiN KRJ\ D V]HQQ\H] pV D V]DEiO\R]yKDWyViJ N|]|WWL LQWHUDNFLyN HJ\HQV~O\LYpJHUHGPpQ\HNpQWD]HOpUKHW N|OWVpJPHJWDNDUtWiVRNPLDWWD]|QNpQWHVPHJiOOD SRGiVRN OpWUHM|WWH OHV] D] HJ\HQV~O\L PHJROGiV S! HVHWpQ 0LQGD]RQiOWDO D] HOpUKHW
V]HQQ\H]pVHOKiUtWiV DODFVRQ\ V]LQWHQ IRJ PHJYDOyVXOQL KD D N|WHOH] V]DEiO\R]iV EHYH]HWpVpQHNDIHQ\HJHWpVHNHYpVVpYDOyV]tQ&
(]HNXWiQDPRGHOOPHJYL]VJiOMDD]DONXSR]tFLyNNO|QE|]HORV]OiViQDNKDWiViWLV$UHODWtY DONXSR]tFLy QHPFVDN D] |QNpQWHV PHJiOODSRGiVEyO HUHG W|EEOHW KDV]QRN HORV]WiViW YiOWR]WDWMD PHJ KDQHP D] HJ\HQV~O\L HOKiUtWiVL V]LQW KDWpNRQ\ViJiUD LV KDWiVVDO YDQ +D D V]DEiO\R]y UHQGHONH]LN D] |VV]HV DONXSR]tFLyYDO DNNRU PHJYDOyVXOKDW D WiUVDGDOPLODJ RSWLPiOLVV]LQW&HOKiUtWiVILUVWEHVWD]|QNpQWHVPHJiOODSRGiVRQNHUHV]WOHEEHQD]HVHWEHQ DNiU D PpUOHJHOW N|WHOH] HOtUiVRNQiO LV PDJDVDEE V]LQWHQ +D D FpJHN ELUWRNROMiN D]
DONXSR]tFLyNDW DNNRU EiU D] |QNpQWHV PHJiOODSRGiV PHJYDOyVXO D]RQEDQ RO\DQ HOKiUtWiVL V]LQWHQDPHO\EL]WRVDQDODFVRQ\DEEV]LQW&OHV]PLQWDWiUVDGDOPLRSWLPXPpVNLVHEEDQQiOD V]LQWQpOLVDPHO\HWDN|WHOH]HOtUiVRNNDOHOOHKHWpUQL
$ WRYiEELDNEDQ D OpWUHM|Y HOKiUtWiVL V]LQW YL]VJiODWiW NLWHUMHV]WHWWpN HJ\ RO\DQ PRGHOOUH DPHO\ PiU QHPFVDN D V]DEiO\R]iVVDO YDOy IHQ\HJHWHWWVpJHW YL]VJiOMD KDQHP D WiPRJDWiV OHKHWVpJHV KDWiViW 7HKiW HEEHQ D] HVHWEHQ D FpJHW PiU QHPFVDN D V]DEiO\R]iV KDQHP D]
HOIRJDGiV HVHWpQ HJ\ HVHWOHJHV WiPRJDWiV LV DUUD |V]W|Q|]KHWL KRJ\ |QNpQW YiOODOMD D PDJDVDEE HOKiUtWiVL V]LQWHW $ NXWDWyN D]W YL]VJiOWiN KRJ\ KRJ\DQ YiOWR]LN D SRWHQFLiOLVDQ HOIRJDGKDWy HOKiUtWiVL WDUWRPiQ\ D V]DEiO\R]iVVDO YDOy IHQ\HJHWHWWVpJ pV D WiPRJDWiV NO|QE|]NRPELQiFLyLHVHWpQ
+D D] |QNpQWHV PHJiOODSRGiVEDQ YDOy UpV]YpWHO FVDN N|OWVpJHV WiPRJDWiVVDO YiOWKDWy NL DNNRUD]RSWLPiOLVHOKiUtWiVLV]LQWNLYiODV]WiViEDQQHPHOHJHQGFVDNDPDUJLQiOLVKDV]QRNpV D]HOKiUtWiVPDUJLQiOLVN|OWVpJHLQHNNLHJ\HQOtWpVHKDQHPDV]DEiO\R]yKDWyViJQDNILJ\HOHPEH NHOOYHQQLHDWiPRJDWiVHOWHUHPWpVpQHNWiUVDGDOPLN|OWVpJHLWLVVRFLDOFRVWVRIIXQGV0LQpO ÄGUiJiEE´D]DGRWWRUV]iJEDQDWiPRJDWiVDQQiODODFVRQ\DEEDV]DEiO\R]yKDWyViJiOWDONtQiOW WiPRJDWiV pV D KR]]iWDUWR]y HOKiUtWiVL V]LQW (J\HQV~O\L V]LQWHQ D IL]HWHWW WiPRJDWiV S!
HVHWpQNLVHEEPLQWD]|QNpQWHVPHJiOODSRGiVWYiOODOyFpJHEEON|YHWNH]|VV]HVN|OWVpJH
~J\KRJ\LQNiEEÄN|OWVpJPHJRV]WiVUyO´PLQWWHOMHVNRPSHQ]iFLyUyOEHV]pOKHWQN
$] HOHP]pV D] DOiEEL |VV]HJ] N|YHWNH]WHWpVHNHW IRJDOPD]]D PHJ D] |QNpQWHV PHJiOODSRGiVRNQDNDN|WHOH] HOtUiVRNKR]YLV]RQ\tWRWWUHODWtYKDWpNRQ\ViJiUDYRQDWNR]yDQ D IHOiOOtWRWW N|]JD]GDViJL PRGHOOEO $] |QNpQWHV PHJiOODSRGiV D] HOpUKHW N|OWVpJPHJWD
NDUtWiVRN PLDWW PLQGLJ HJ\HQV~O\L NLPHQHWHOH OHV] D V]DEiO\R]y KDWyViJ pV D FpJ N|]|WWL LQWHUDNFLyQDNYDJ\LVDWiUJ\DOiVVRUiQPHJiOODSRGQDNHJ\N|OFV|Q|VHQHOIRJDGKDWyHOKiUtWiVL V]LQWEHQpVHNLDODNtWRWWV]LQWHWHJ\LNIpOVHPWXGMDYDJ\DNDUMDHJ\ROGDO~DQPHJYiOWR]WDWQLD PHJiOODStWRWW IHOWpWHOHN EHWDUWiVD PHOOHWW PpJ DEEDQ D] HVHWEHQ LV KD D FpJHNQHN QHP DMiQODQDNIHOWiPRJDWiVW0LQGD]RQiOWDODN|OFV|Q|VHQNLDONXGRWWHOKiUtWiVLV]LQWIJJHQLIRJ
,DV]DEiO\R]ypVDFpJDONXSR]tFLyLQDNHUHGHWLOHRV]WiViWyO ,,DV]LJRU~EEV]DEiO\R]iVVDOYDOyIHQ\HJHWHWWVpJPpUWpNpWO ,,,DWiPRJDWiVN|]ILQDQV]tUR]iVWiUVDGDOPLV]LQW&N|OWVpJHLWO
$PLNRU D V]DEiO\R]y HUV DONXSR]tFLyEDQ YDQ DNNRU D] HJ\HQV~O\LiOODSRW D WiUVDGDOPLODJ OHJKDWpNRQ\DEE HOKiUtWiVL V]LQWKH] YH]HWKHW ILUVW EHVW VW D] tJ\ NLDODNXOW V]LQW PHJKDODGKDWMD D N|WHOH] HOtUiVRN iOWDO PHJNtYiQW V]LQWHW SO D] (3$ ;/ SURMHNWMH $]
LO\HQPDJDVV]LQWHOpUpVHDNNRUYDOyV]tQ&KDDV]LJRU~V]DEiO\R]iVKiWWpUIHQ\HJHWpVHMHOHQWV ,O\HQ HVHWHW NpSYLVHO D] LV KD D] |QNpQWHV PHJiOODSRGiVEDQ UpV]WYHYN DXWRPDWLNXVDQ PHQWHVOQHN EL]RQ\RV N|WHOH] HOtUiVRNWyO LOOHWYH D]RN HJ\HV HOHPHLWO WHKiW D PiVLN DOWHUQDWtYiUDQp]YHS
.LVHEE IHQ\HJHWpV HVHWpQ pVYDJ\ DEEDQ D] HVHWEHQ KD D FpJQHN YDQ My DONXSR]tFLyMD D NLDODNXOy |QNpQWHV PHJiOODSRGiV DODSMiQ OpWUHM|Y HOKiUtWiVL V]LQW DODFVRQ\ OHV] tJ\ HQQHN HUHGPpQ\HNpQWDN|WHOH] HOtUiVKR]NpSHVWDODFVRQ\DEEN|UQ\H]HWPLQVpJpUKHW HOPLQWD N|WHOH]HQ DONDOPD]RWW HV]N|]|N HVHWpQ (] D] |VV]HIJJpV UiPXWDW D] |QNpQWHV PHJiOODSRGiVRNHONpV]tWpVpQHNYHV]pO\HNpQWVRNV]RUHPOHJHWHWWÄV]DEiO\R]iVLFVDSGD´NpWI PDJ\DUi]yWpQ\H]MpUH$]LO\HQHVHWHNQpOLVPpJYLV]RQ\ODJNHGYH]NLPHQHWHOOHKHW±KDD WiPRJDWiVRNHOWHUHPWpVpKH]V]NVpJHVWiUVDGDOPLN|OWVpJHNDODFVRQ\DN±KRJ\D]|QNpQWHV PHJiOODSRGiVRNDW N|OWVpJPHJRV]WiVVDO UpV]OHJHV WiPRJDWiVVDO ~J\ |V]W|Q]LN KRJ\ D] D MyOpWHWLVQ|YHOMHXJ\DQDNNRUMREEN|UQ\H]HWiOODSRWKR]LVYH]HVVHQ
(] XWyEELUD ± PHJIHOHO IHOWpWHOHN HVHWpQ ± D PH]JD]GDViJEDQ D N|UQ\H]HWNtPpO JD]GiONRGiVNULWpULXPDLQDNNLHOpJtWpVHNRUOHKHWOHJLQNiEESpOGiWWDOiOQL
$ PH]JD]GDViJEDQ - :X pV % $ %DEFRFN YL]VJiOWD D] |QNpQWHV SURJUDPRN ± N|WHOH]
HOtUiVRNKR]YLV]RQ\tWRWW±UHODWtYKDWpNRQ\ViJiW
$PRGHOOEHQYL]VJiOW|QNpQWHVSURJUDPEDQDWHUPHONWHUPpV]HWN|]HOLJD]GiONRGiVUDWpUQHN iWPtJDNRUPiQ\]DWWHFKQLNDLpVSpQ]J\LVHJtWVpJHWQ\~MWH]pUWFVHUpEH
$ PRGHOO D WiPRJDWiV DODSHJ\VpJpQHN PHJKDWiUR]iVDNRU D] HJ\VpJQ\L WHUOHWUH HV OHJQDJ\REESURILWFV|NNHQpVVHOV~MWRWWIDUPRWMHO|OLNL(EEOD]HJ\VpJEONLLQGXOYDKDWiUR]]D PHJD]WD]|VV]HJHWDPHO\HWDNRUPiQ\]DWQDNNLNHOOIL]HWQLHKRJ\PLQGHQpULQWHWWWHUPHO UpV]WYHJ\HQDSURJUDPEDQ
$ PRGHOO HOPpOHWLOHJ NpW N|OWVpJFVRSRUWRW D]RQRVtW D IDUPRNRQ EHOO pV IDUPRNRQ NtYO IHOPHUO N|OWVpJHNHW $ WHUPHON SURILWFV|NNHQpVW YDJ\ WHUPHOpVL N|OWVpJHLN HPHONHGpVpW V]HQYHGLN HO KD WHUPpV]HWN|]HOL PyGRQ JD]GiONRGQDN $ NRUPiQ\QDN H]pUW NRPSHQ]iOQLD NHOONHWGHH]HNQHNDNRPSHQ]iOiVUDIRUGtWKDWySpQ]HNQHND]|VV]HJ\&MWpVHNRUNO|QE|]
N|OWVpJHN PHUOQHN IHO KROWWHKHUYHV]WHVpJ D] DGyEHJ\&MWpV DGPLQLV]WUiFLyV N|OWVpJHL D PXQNDDEHUXKi]iVRNpV IRJ\DV]WiVL V]HUNH]HW WRU]XOiVDLPLDWW(QQHN QDJ\ViJiW D] 86È EDQGROOiUUDWHV]LNPLQGHQHJ\HVDGyGROOiUUDV]iPtWYD
$V]HU]NPRGHOOMpEHQD]|QNpQWHVSURJUDPWHOMHVWiUVDGDOPLN|OWVpJpWWRYiEEILQRPtWYDD]W QpJ\WpQ\H]UHERQWMiNPHO\HNDN|YHWNH]N
x DWHUPHONNRUPiQ\]DWLWiPRJDWiVHOWWLWHOMHVSURILWFV|NNHQpVH x DN|]YHWOHQNRUPiQ\]DWLWiPRJDWiVRNKROWWHKHUYHV]WHVpJH x DNRUPiQ\]DWLV]ROJiOWDWiVRNWiUVDGDOPLN|OWVpJH
x D]|QNpQWHVSURJUDPYpJUHKDMWiVLN|OWVpJH
$]|QNpQWHVSURJUDPFVDNDNNRUKDWpNRQ\DEEPLQWD]RNDSURJUDPRNDPHO\HNDWHUPHOpVL PyGYiOWiViWN|WHOH]YpWHV]LNKDD]|QNpQWHVSURJUDPKR]WDUWR]yNRUPiQ\]DWLWiPRJDWiVRN KROWWHKHUYHV]WHVpJHL NLVHEEHN PLQW D NRUPiQ\]DW V]ROJiOWDWiVDLQDN D PDJiQ pV N|]N|OWVpJpQHN NO|QEVpJH YDODPLQW D N|WHOH] HOtUiVRNRQ DODSXOy SURJUDP YpJUHKDMWiVL N|OWVpJH(QQHNDV]NVpJHVpVHOpJVpJHVIHOWpWHOQHNDWHOMHVOpVHDNNRUYDOyV]tQ&KD
, D NRUPiQ\]DWL EHYpWHOHN Q|YHOpVpEO DGyGy KROWWHKHU YHV]WHVpJHN FVHNpO\HN YDJ\
]pUXVpUWpN&
,, KD D NRUPiQ\]DW NHYpVEp SLDFL YHUVHQ\ V]HJPHQVEHQ Q\~MW V]ROJiOWDWiVW SO LQIRUPiFLyV]ROJiOWDWiV
,,, KDDNRUPiQ\]DWiOWDOQ\~MWRWWV]ROJiOWDWiVROFVyEEPLQWD]XJ\DQRO\DQKDWiV~Q\~MWy PDJiQV]ROJiOWDWiV
,9 DUpV]WYHYWHUPHOHJ\VpJHNIDUPRNV]iPDQDJ\
9 KD D] |QNpQWHV SURJUDP YpJUHKDMWiVL N|OWVpJPHJWDNDUtWiVDL MHOHQWVHN pV J\RUVDQ FV|NNHQQHNDSURJUDPNHUHWpEHWDUWR]yWHUOHWQ|YHNHGpVpYHO
(] XWyEEL NpW HUHGPpQ\W W|EE WDSDV]WDODWL PHJILJ\HOpV LV DOiWiPDV]WRWWD $PLNRU QDJ\
NLWHUMHGpV& pU]pNHQ\ WHUPpV]HWL WHUOHWHQ (6$ FpOR]WiN D WHUPpV]HWN|]HOL JD]GiONRGiVW HOWHUMHV]WHQLDN|WHOH]V]DEiO\R]iVQDNMHOHQWVHQQ|YHNHGQLNH]GWHNDYpJUHKDMWiVLN|OWVpJHL
$PRGHOOUiPXWDWDUUDKRJ\D WHUPpV]HWN|]HL JD]GiONRGiVJ\DNRUODWiQDN HOWHUMHV]WpVpEHQ D QDJ\V]iP~NLVWHUOHWHQJD]GiONRGyWHUPHONHVHWpQD]|QNpQWHVSURJUDPRNQDNNRPSDUDWtY HOQ\HYDQDN|WHOH]SURJUDPRNNDOV]HPEHQ
7RYiEELNLHJpV]tWpVHND]HOPpOHWHNKH]
$ V]DEiO\R]iV NLDODNXOiViQDN KD]DL IRO\DPDWD HOWpUW DWWyO DPL W|EE PiV ± IHMOHWWHEE pV D N|UQ\H]HWSROLWLNiN IRUPiOiViEDQ QDJ\REE WDSDV]WDODWRNNDO UHQGHONH] ± RUV]iJ J\DNRUODWiW MHOOHPH]WH LOOHWYH MHOOHP]L eUGHPHV WiJDEE NHUHWHN N|]|WW V]HPJ\UH YHQQL QpPLOHJ VDUNtWRWWDQPLYROWDNO|QEVpJDV]DEiO\R]iVNLDODNXOiViQDNIRO\DPDWiEDQ
$ N|UQ\H]HWYpGHOHP JD]GDViJL V]DEiO\R]iViQDN HOWHUMHGW ORJLNiMD HGGLJ D] HXUySDL pV PiV IHMOHWW RUV]iJRNEDQ HOVVRUEDQ D N|YHWNH] Ii]LVRN HJ\PiVUD pSOpVpW MHOHQWHWWH $PtJ D]
HJ\HV N|UQ\H]HWL SUREOpPiN KDWiVPHFKDQL]PXVDLQDN IHOLVPHUpVH pV WXGRPiQ\RVDQ PHJDODSR]RWW IHOPpUpVH HOMXWRWW DGGLJ D V]LQWLJ KRJ\ SO EL]RQ\RV DQ\DJRNUyO DQ\DJFVRSRUWRNUyOHJ\pUWHOP&HQHOG|QWKHWOHWWPHQQ\LEHQpVPLNpQWMiUXOQDNKR]]iD]DGRWW N|UQ\H]HWL SUREOpPD NLDODNXOiViKR] DGGLJ D MHOOHP] IRO\DPDW D KDWyViJL pV D] LSDUL iOOiVSRQWRN NRPPXQLNiFLyMD YROW 7HKiW D YHV]pO\HVQHN JRQGROW DQ\DJ KDV]QiODWiW D V]DEiO\R]iV QHJDWtYDQ pUWpNHOWH SpOGiXO NLOiWiVED KHO\H]WH KRJ\ DPLQW HJ\pUWHOP&HQ EHEL]RQ\RVRGLND]DQ\DJQDNDNiURNR]iVKR]YDOyMHOHQWVKR]]iMiUXOiVDD]DQ\DJIDMWDWLODOPL OLVWiUDNHUO$IHOPpUpVHNYL]VJiODWRNVRUiQIHOJ\&OWLVPHUHWHNKDWiViUDIHOKtYWiND]pULQWHWW V]HNWRUILJ\HOPpWDUUDKRJ\KHO\HWWHVtWDQ\DJRWWHUPpNHWGROJR]]DQDNNLYDJ\KDDJRQGRN MHOOHP]VHQD KXOODGpNNi YiOiV XWiQ MHOHQWNH]QHN PiV PyGRQ ± D] DGRWW DQ\DJQDN DQ\DJ FVRSRUWQDN|VV]HJ\&MWpVVHOpVKDV]QRVtWiViYDOYDJ\PHJIHOHOiUWDOPDWODQtWiViYDO±ROGMDPHJ DSUREOpPiW$PHJROGiVIRUPiMiWDOHKHWVpJHVNHUHWHNN|]WD]LSDUiJGROJR]WDNL$]XWyEEL
SpOGiQiO PDUDGYD D V]NVpJHVQHN WDUWRWW EHJ\&MWpVL DUiQ\KR] DPHO\ D KXOODGpNIi]LVEDQ YHV]pO\HV DQ\DJRN HVHWpQ HOYLOHJ DNiU WHOMHVN|U& LV OHKHW D OHJKDWpNRQ\DEE UHQGV]HUHN NLDODNtWiViWD]LSDUUDEt]WD$]HOYLOHJHOpUKHWPD[LPiOLVKDWpNRQ\ViJDNLDODNXOWUHQGV]HUHN QHP PLQGHJ\LNpW MHOOHP]L OiVG SO D 1pPHWRUV]iJEDQ NLDODNXOW GXiOLV KXOODGpNJ\&MW UHQGV]HUW DPHO\QHN LO\HQ IRUPiEDQ W|UWpQ NLDODNXOiViKR] D]RQEDQ V]iPRV WpQ\H]
KR]]iMiUXOW
$PHQQ\LEHQD]pULQWHWWLSDUiJV]HNWRUD]DGRWWN|YHWHOPpQ\HNHWQHPWXGWDWHOMHVtWHQLSOD PHJIHOHO NH]HOpVL DUiQ\RNDW HEEHQ D KHO\]HWEHQ QHP pUWH HO DNNRU KHO\H]WH D KDWyViJ NLOiWiVED D NRPRO\DEE IHQ\HJHWpVVHO MiUy HV]N|]|N V~O\RV EtUViJRN HVHWOHJHV WLODOPDN EHYHWpVpW7XODMGRQNpSSHQLO\HQÄIHQ\HJHW´HV]N|]QHNPLQVOWHJ\Ä|V]W|Q]´V]LQWHWHOpU JD]GDViJL V]DEiO\R]y SO HJ\ YLV]RQ\ODJ PDJDV V]LQW& WHUPpNGtM EHYH]HWpVH LV $ V]DEiO\R]iVLUHQGV]HUORJLNiMiQDNHUHGPpQ\HVP&N|GpVHNRUD]RQEDQHÄIHQ\HJHW´HV]N|]|N WpQ\OHJHVDONDOPD]iViUDVRNV]RUPiUQHPLVNHUOWVRU$]pULQWHWWYiOODODWRN±HOVVRUEDQD OHJQDJ\REE EHIRO\iVVDO EtUy SLDFYH]HWN ± XJ\DQLV DGGLJUD NLGROJR]]iN D PHJIHOHO KHO\HWWHVtWDQ\DJRWWHUPpNHWYDJ\YLVV]DJ\&MWpVLNH]HOpVLUHQGV]HUHNHW(]HNXWiQQHPKRJ\
DV]LJRU~V]DEiO\R]iVHOOHQN]GHQHNKDQHPDQQDNPLQpON|YHWNH]HWHVHEEpVD]HJpV]SLDFUD NLWHUMHG pUYpQ\HVtWpVppUW V]iOOQDN VtNUD KLV]HQ pUGHNNNp YiOW SO D KHO\HWWHVtW WHUPpN SLDFiQDN NLWHUMHV]WpVH DYDJ\ KRJ\ D] iOWDOXN NLGROJR]RWW UHQGV]HUEH YDOy EHOpSpV N|YHWHOPpQ\OHJ\HQH]]HOSUyEiOYDQDJ\REESLDFLUpV]HVHGpVWHOpUQLXJ\DQDNNRUDEHJ\&MW UHQGV]HUHNKDWpNRQ\ViJiWLVMDYtWYDPLQpOW|EEHQYiOQDNDUHQGV]HUWDJMiYiDQQiON|QQ\HEED PpUHWJD]GDViJRVViJEyO DGyGy HOQ\|NHW NLKDV]QiOQL $ IRO\DPDW W|EE N|UQ\H]HWYpGHOPL V]DNWHUOHWHQDNiUFLNOLNXVDQLVpUYpQ\HVOKHW
$] HO] IHMH]HWEHQ UpV]OHWH]HWW NXWDWiVRNEDQ OHtUW IHQ\HJHWHWWVpJ KD]DL YLV]RQ\ODWEDQ D V]DEiO\R]y UpV]pUO .|0 ~J\ LV Q|YHOKHW KRJ\ KD D S pUWpNpW HJ\ V]LJRU~EE W|UYpQ\L V]DEiO\R]iVEHYH]HWpVHQDJ\REEYDOyV]tQ&VpJpYHOQHPWXGMDQ|YHOQLPHUWSODNRUPiQ\RQ EHOO VLQFV My DONXSR]tFLyMD PiU D] LO\HQ W|UYpQ\WHUYH]HWHN HOIRJDGWDWiVD LV QHKp]VpJHNEH
WN|]LND]2UV]iJJ\&OpVUOQHPLVV]yOYDKRJ\DKDWiUpUWpNHWV]LJRUtWMDDPHQQ\LUHH]VDMiW KDWiVN|UEHQ OHKHWVpJHV MHO|OMN H]W +pYHO ËJ\ D S pUWpNpQHN ± D IHQ\HJHWHWWVpJQHN ± D PpUOHJHOpVHNRUDJD]GiONRGyNQDNILJ\HOHPEHNHOOYHQQLHKRJ\DV]LJRUtWiVHJ\HVHOHPHL±SO +p ± VDMiW KDWiVN|UEHQ N|QQ\HEEHQ QDJ\REE YDOyV]tQ&VpJJHO pUYpQ\HVtWKHWN V HQQHN
KDWiViUDDYiOODODWRNLQNiEEKDMODQDND]DONXUD(UUHQ\~MWJ\DNRUODWLSpOGiWDWDQXOPiQ\
IHMH]HWH
$J\DNRUODWLDONDOPD]iVN|YHWHOPpQ\HLDQHP]HWN|]LWDSDV]WDODWRN DODSMiQ
$ QHP]HWN|]L V]DNLURGDORP iOWDOiEDQ KiURP NO|QE|] IDMWiMiW YL]VJiOMD D] |QNpQWHV PHJiOODSRGiVRNQDNHJ\ROGDO~HJ\H]PpQ\HNWiUJ\DOiVRVPHJiOODSRGiVRNpV|QNpQWHVN|]|V SXEOLFSURJUDPRN
(J\ROGDO~ HJ\H]PpQ\ ÈOWDOiEDQ RO\DQ LSDUiJD]DWL NH]GHPpQ\H]pVW MHOHQW DPHO\ LQNiEE NYDOLWDWtYPLQWNYDQWLWDWtYFpORNDWIRJDOPD]PHJ0LYHODN|]LJD]JDWiVLV]HUYHNKLiQ\R]QDN H]HNEO D SURJUDPRNEyO pV D] HJ\ROGDO~ HJ\H]PpQ\HN D YpJUHKDMWiVUD V NO|Q|VHQ D]
HOOHQU]pVUH pV V]DQNFLRQiOiVUD iOWDOiEDQ QHP WDUWDOPD]QDN UHQGHONH]pVHNHW H]pUW H]HNHW D N|]YpOHPpQ\NHYpVEpIRJDGMDHO
7iUJ\DOiVRV PHJiOODSRGiVRN HJ\ N|]LJD]JDWiVL V]HUY pV YDODPLO\HQ LSDUL WHVWOHW NpSYLVHOHWL V]HUY N|]|WW N|W|WW PHJiOODSRGiV DPHO\ YDODPLO\HQ V]HQQ\H]pVHOKiUtWiVL V]LQWHW MHO|OPHJFpOMiXOPHJKDWiUR]YDDQQDNKDWiULGHMpWLV.pWI IDMWiMDNO|QE|]WHWKHW PHJD]
HJ\LNEHQDPRQLWRULQJPHJILJ\HOHOOHQU]pUWpNHOIXQNFLyNpVDV]DQNFLyNHJ\HJ\FpJUH OHERQWYDMHOHQQHNPHJHQJHGpO\YDJ\NYyWDUHQGV]HUEHQPtJDPiVLNHVHWpQDPRQLWRUR]iV pVDV]DQNFLyNLVN|]|VHNtJ\H]DNHYpVEpNLNpQ\V]HUtWKHWPHJiOODSRGiVLIRUPD
+ROODQGLiEDQ H]HN D PHJiOODSRGiVRN PLQGLJ N|WHOH] pUYpQ\&HN DPLW ~J\ pUQHN HO KRJ\
PLYHO D] LSDUiJL NpSYLVHOHWL V]HUYHNNHO QHP OHKHWVpJHV N|WHOH] pUYpQ\& V]HU]GpVW N|WQL PLQGHQHJ\HVFVDWODNR]QLNtYiQyYiOODODWWDOHJ\HGLV]HU]GpVWN|WQHN1pPHWRUV]iJEDQPLYHO D] DONRWPiQ\ WLOWMD KRJ\ D NRUPiQ\]DW DOitUMRQ |QNpQWHV PHJiOODSRGiVRNDW tJ\ H]HN QHP N|WHOH] pUYpQ\&HN DQQDN HOOHQpUH KRJ\ D N|]LJD]JDWiVL V]HUYHN UpV]W YHV]QHN D]RN PHJIRJDOPD]iViEDQpVLQIRUPiOLVDQHOLVPHULND]RNDW
$]|QNpQWHVN|]|VSURJUDPRNRO\DQNL]iUyODJDN|]LJD]JDWiVLV]HUYHNiOWDOPHJWHUYH]HWW OpWUHKR]RWW SURJUDPRN DPHO\HNEHQ D] |QNpQWHV HOHP D] KRJ\ D YiOODODWRN YiODV]WKDWQDN KRJ\ UpV]W YHV]QHNH YDJ\ VHP 0HJKDWiUR]RWW FpONLW&]pVHN pV HOOHQU]pVVHO NDSFVRODWRV UpV]OHWHVUHQGHONH]pVHNMHOOHP]LN
gVV]HIRJODOyD](XUySDL8QLyVWDSDV]WDODWRNUyO
$] (XUySDL 8QLyQ EHOO KiURPV]i]DW PHJKDODGWD D WiUJ\DOiVRV PHJiOODSRGiVRN V]iPD XJ\DQDNNRU D PiVLN NpW NDWHJyULiEDQ H] N|UO DODNXOW (J\ HV QHP]HWN|]L YL]VJiODWD](XUySDL8QLyEDQRO\DQPHJiOODSRGiVWD]RQRVtWRWWD]HJ\HVWDJiOODPRNEDQ DPHO\HNHW D] iOWDOXQN LV YL]VJiOW WiUJ\DOiVRV PHJiOODSRGiV NDWHJyULiMiED WDUWR]QDN $ YL]VJiODWDGDWDLDWiUJ\DOiVRVPHJiOODSRGiVRNN|YHWNH]iJD]DWLPHJRV]OiViWPXWDWMiN
$WDJRUV]iJRNEDQDOHJW|EELO\HQPHJiOODSRGiVD]LSDUEDQV]OHWHWWDPHO\HWD]HQHUJHWLND PDMG D PH]JD]GDViJ N|YHW $] LSDUEDQ D] DONDOPD]RWW PHJiOODSRGiVRN N|]HO KDUPDGD D YHJ\LSDUEDQH]HQW~OPHQHQWt]V]i]DOpNRVUpV]DUiQ\WPHJKDODGyDQD]pOHOPLV]HULSDUEDQD IpPHOiOOtWiVEDQ pV IHOOHWNH]HOpVEHQ D QHP iVYiQ\L WHUPpNHN HOiOOtWiViEDQ D JXPL pV P&DQ\DJWHUPpNHNHOiOOtWiVEDQYDODPLQWD]HQHUJLDJi]pVYt]V]ROJiOWDWiVEDQMHOHQWNH]LN
$ IHOPpUpV V]HULQWL |QNpQWHV PHJiOODSRGiV V]DNWHUOHW V]HULQWL ERQWiViW D N|YHWNH] iEUD PXWDWMDEHD](XUySDL8QLyRUV]iJDLEDQ
iEUD$]|QNpQWHVPHJiOODSRGiVRNV]iPDV]DNWHUOHWV]HULQW
)RUUiV2(&'S
$]HJ\ROGDO~HJ\H]PpQ\HNSURJUDPRNV]iPiWHJ\DV81(3WDQXOPiQ\D](8EDQ UHWHV]L(]HNQDJ\UpV]pWDYHJ\LSDUEDQN|W|WWpNPHJDPLKDVRQOyWHQGHQFLiWPXWDWDW|EEL
' D U D E
+XOODGpNJD]GiONRGiV 9t]PLQVpJ hYHJKi]KDWiV~Ji]RN .|UQ\H]HWHJpV]VpJJ\ /HYHJPLQVpJ 7DODMYpGHOHP Ï]RQSDM]V 7|EEWHUOHW (J\pE
(XUySiQNtYOLIHMOHWWRUV]iJRNEDQW|UWpQ DONDOPD]iVXNiJD]DWLPHJRV]OiViKR](QQHNHJ\LN OHJMHOHQWVHEERNDD]KRJ\D5HVSRQVLEOH&DUHSURJUDPRWD.pPLDL6]|YHWVpJHN1HP]HWN|]L 7DQiFVD ,&&$ LV HOIRJDGWD pV DMiQORWWD QHP]HWL V]LQWHQ HOIRJDGiVUD 6]iPRV HJ\pE YHJ\LSDUL HJ\H]VpJ LV HKKH] D NH]GHPpQ\H]pVKH] NDSFVROyGLN tJ\ QHP PHJOHS KRJ\ D YHJ\LSDUEDQOHJLQNiEEH]DIDMWDPHJiOODSRGiVGRPLQiO
iEUD8QLODWHULiOLVHJ\H]VpJHN
)RUUiV2(&'S
$] |QNpQWHV N|]|V SURJUDPRN N|]O HXUySDL V]LQWHQ LVPHUW SURJUDPRN D] (0$6 (FR 0DQDJHPHQW DQG $XGLWLQJ 6FKHPH DPHO\ D N|UQ\H]HWLUiQ\tWiVL J\DNRUODW KLWHOHVtWpVpYHO IRJODNR]LNLOOHWYHD](XUySDLgNRFtPNH5HQGV]HU
$]HJ\LNSRWHQFLiOLVRUV]iJSpOGDDPHJiOODSRGiVRNDONDOPD]iViUD+ROODQGLD
$ KROODQG MRJL J\DNRUODW UpV]OHWHNEH PHQ YL]VJiODWD QDJ\ VHJtWVpJHW DGKDW D] |QNpQWHV PHJiOODSRGiVRNNDO NDSFVRODWRV PDJ\DU MRJV]DEiO\L N|YHWHOPpQ\HN NRQNUpW PHJIRJDO PD]iViKR] +ROODQGLiEDQD]|QNpQWHVPHJiOODSRGiVRNFRYHQDQW N|WHOH] pUYpQ\&HN pV D]
H]HNNHO NDSFVRODWRV WDSDV]WDODWRN |VV]HJ\&MWpVpUH MHOHQWV LGWiY iOOW UHQGHONH]pVNUH 8J\DQDNNRU D PHJiOODSRGiVRN N|WpVpYHO NDSFVRODWRV LUiQ\PXWDWiVRNDW WDUWDOPD]y NRUPiQ\UHQGHOHW 5HJXODWLRQ QR 0 FVDN GHFHPEHUpEHQ MHOHQW PHJ $ PHJiOODSRGiVRNNDO NDSFVRODWRV OHJIRQWRVDEE VDURNSRQWRN NULWpULXPRN pV SUREOpPiN
'E
9HJ\LSDU (QHUJLD %iQ\iV]DWpV IpPLSDU 0iVLSDU 7XUL]PXV 0iV V]ROJiOWDWiVRN 7|EEV]HNWRU N|]|WWL
NH]HOpVpUHtJ\HOHJHQG WDSDV]WDODWJ\&OW|VV]HPLUHD]LUiQ\PXWDWiVRNDWKLYDWDORVIRUPiED
|QW|WWpN(QQHNHOHP]pVHDGKDWMDDYi]iWDNRQNUpWPDJ\DURUV]iJLWHHQGNQHNLV
0iU EHQ NpV]OW +ROODQGLiEDQ HJ\ iWWHNLQW MHOHQWpV D PHJiOODSRGiVRNUyO DPL DMiQOiVRNDW WDUWDOPD]RWW J|UGOpNHQ\ DONDOPD]iVXNUD 9pJO EHQ HJ\ PLQLV]WpULXPRN N|]|WWL PXQNDFVRSRUWiOOtWRWWD |VV]H D WHUYH]HWHW DPHO\ YpJpQ D PLQLV]WHUHOQ|N pV D]
iOWDOiQRV J\HNpUW IHOHOV PLQLV]WHU DOitUiViYDO KDWiO\ED OpSHWW $ NRUPiQ\UHQGHOHW LUiQ\PXWDWiVDL LQNiEE DMiQOiVRN PLQWVHP N|WHOH] pUYpQ\& UHQGHONH]pVHN PLYHO D NDSFVRODWRV HOPpOHW pV D J\DNRUODW PpJ DNNRU VHP YROW WHOMHVHQ NLIRUURWW LOOHWYH D NRUiEEL UXJDOPDVViJRW WRYiEEUD LV IHQQ NtYiQWiN WDUWDQL $] LUiQ\HOYHN HOVVRUEDQ D]RNDW D KLYDWDOQRNRNDW FpOR]]D PHJ DPHO\HN D NRUPiQ\ iOWDO PHJN|WHQG PHJiOODSRGiVRN HONpV]tWpVpYHOIRJODNNR]QDN
$PHJiOODStWRWWUHQGHONH]pVHNDN|YHWNH]NpQWFVRSRUWRVtWKDWyDN
(J\UpV]W GHILQLiOMD D PHJiOODSRGiVRNQDN D]W D N|UpW DPHO\HN D UHQGHOHW LUiQ\PXWDWiVDL DOi WDUWR]QDN ,WW NL]iUMD D PDJiQIHOHN HJ\PiV N|]WL PHJiOODSRGiVDLW pV D]RNDW D NRUPiQ\]DWL V]HUYHNpV HJ\pE IHOHN N|]WL PHJiOODSRGiVRNDW DPHO\HN WDUWDOPXN PLDWW QHP WDUWR]QDN LGH SOD]DGyKDWyViJpVDGy]yNN|]WLPHJiOODSRGiVRN$](8UHQGHONH]pVHNYpJUHKDMWiVEDQD PHJiOODSRGiVRNOHKHWVpJHVV]HUHSpWLVSRQWRVtWMD
(]W N|YHWL D WiUJ\L N|YHWHOPpQ\HN PHJIRJDOPD]iVD D OHKHWVpJHV SDUWQHUHN N|UpQHN PHJKDWiUR]iViYDO D PHJiOODSRGiVRN FpOMDLQDN D] DEEyO DGyGy MRJRN pV N|WHOH]HWWVpJHN OHKHWVpJHVHVHWHLQHNDGHILQLiOiViYDO(]XWiQDPHJiOODSRGiViOWDOHOpUHQGHOpUWWHOMHVtWPpQ\
pUWpNHOpVpYHO YDODPLQW D] pUGHNWN|]pVHN MRJYLWiN VRUiQ N|YHWHQG HOMiUiVKR] V]NVpJHV DODSYHW V]DEiO\RNDW iOODStWMD PHJ (]HN VRUiQ NRQNUpW WDUWDOPL HOHPHNHW LV PHJDG LOOHWYH DPHO\HNHW H[SOLFLW PyGRQ NL NHOO ]iUQLD $ PHJiOODSRGiVRN LGWDUWDPiUyO D] HOpUW HUHGPpQ\HN pUWpNHOpVpUO D PyGRVtWiV OHKHWVpJHLUH D FVDWODNR]iVUD pV NLOpSpVUH PHJiOODStWKDWyV]DEiO\RNUDDGLUiQ\PXWDWiVW
(]HNXWiQD]HOMiUiVUHQGLN|YHWHOPpQ\HNN|]ODPLQLV]WpULXPRNMRJLUpV]OHJHLQHNN|WHOH]
UpV]YpWHOpUO EL]RQ\RV HVHWHNEHQ D] (8 %L]RWWViJ pUWHVtWpVpUO pV D WHOMHV .RUPiQ\ YDJ\ D 3DUODPHQW UpV]YpWHOpQHN V]NVpJHVVpJpUO UHQGHONH]LN (] XWyEEL NpW HVHWHW D MHOHQWV
N|OWVpJHNNHOMiUyYDJ\RO\DQN|WHOH]HWWVpJYiOODOiVVDOMiUyPHJiOODSRGiVRNQiONHOODONDOPD]QL DPHO\HNHWHJ\PLQLV]WpULXPQHPWXGYDJ\QHPNtYiQ|QiOOyDQDSDUWQHUHNNHOPHJN|WQL 9pJO D N|]YpOHPpQ\ PHJiOODSRGiVRNKR] YDOy KR]]iIpUpVpQHN EL]WRVtWiViW D SXEOLNiOiVL N|WHOH]HWWVpJHWtUMDHO
( UHQGHONH]pVHN HOHP]pVpKH] D] DONDOPD]KDWyViJ YL]VJiODWiKR] WHUPpV]HWHVHQ D KROODQG N|]LJD]JDWiVLMRJUyOV]yOyW|UYpQ\HOtUiVDLWDNDSFVROyGiVRNDWLViWNHOOWHNLQWHQL
$]LQWHQ]tYDONDOPD]iVLWHUOHW-DSiQ
-DSiQEDQD]|QNpQWHVPHJiOODSRGiVRNQDNHJ\WHOMHVHQPiVQDJ\ViJUHQGMpYHOWDOiONR]XQN,WWD WiUJ\DOiVRVPHJiOODSRGiVRNV]iPDDKDUPLQFH]UHWLVPHJKDODGMDD]pYLNENpWH]HUUO UD D] LVPHUW pUYpQ\EHQ OpY LO\HQ PHJiOODSRGiVRN V]iPD UH QWW (]HNQHN D]
iJD]DWLPHJRV]OiViWPXWDWMDEHDN|YHWNH]iEUD
iEUD $ V]HQQ\H]pVFV|NNHQWpVVHO NDSFVRODWRV WiUJ\DOiVRV PHJiOODSRGiVRN V]iPD -DSiQEDQEDQ
)RUUiV2(&'S
'E
0H]
JD]GDViJ
%iQ\iV]DWeStW LSDU
eOHOPLV]HUJ\iUWiV7H[WLOLSDU)DLSDU 3DStULSDU9HJ\LSDU.RODMpVV]pQWHUPpNHN*XPLpVE UJ\iUWiV
&HPHQWpVNHUiPLD9DVpVDFpOJ\iUWiV1HPYDVIpPJ\iUWiV(J\pEIpPJ\iUWiV*pSJ\iUWiV(OHNWURPRViUDPpVHJ\pEN|]V]ROJiOWDWiV*ROISiO\iN,SDULKXOODGpNHOKHO\H]pV(J\pEV]ROJiOWDWiVVWE
+R]]i NHOO D]RQEDQ WHQQL KRJ\ -DSiQEDQ H]HN D PHJiOODSRGiVRN QDJ\UpV]W D N|UQ\H]HWYpGHOPL V]DEiO\R]iVXN EL]RQ\RV KLiQ\RVViJiW KLYDWRWWDN SyWROQL D W~OQ\RPy W|EEVpJHW NLWHY KHO\L WiUJ\DOiVRV PHJiOODSRGiVRN HVHWpEHQ D KHO\L KDWyViJRN QHP YROWDN PLQGHQ HVHWEHQ WHOMHVN|U&HQ IHOKDWDOPD]YD DUUD KRJ\ D] HJ\VpJHV QHP]HWL V]DEiO\R]iVQiO V]LJRU~EE N|UQ\H]HWYpGHOPL V]DEiO\RNDW KR]]DQDN YLV]RQW HJ\HV WHUOHWHNHQ D JD]GDViJL DNWLYLWiVNRQFHQWUiFLyMiQDNQ|YHNHGpVHKDODV]WKDWDWODQQiWHWWHHQHJDWtYDQpULQWHWWWHUOHWHNHQ D IHOPHUO SUREOpPiN KHO\L NH]HOpVpW $ WiUJ\DOiVRV PHJiOODSRGiVRN MHOHQWHWWpN WHKiW D PHJROGiVDODSYHWHV]N|]pW$]HOEELiEUiEyOH]WDKHO\]HWHWWNU|]LDV]ROJiOWDWiVLHJ\pE NDWHJyULDW~OV~O\D
$](J\HVOWÈOODPRNJ\DNRUODWDDPHJiOODSRGiVRNDONDOPD]iViEDQ
$](J\HVOWÈOODPRN.|UQ\H]HWYpGHOPL+LYDWDOD(3$pVD]LSDULNHUHVNHGHOPLV]HUYH]HWHN N|]|WW|QNpQWHVPHJiOODSRGiVWKR]WDNOpWUH(EEO|QNpQWHVN|]|VSURJUDP pVNLOHQFD]HJ\HVLSDULV]HUYH]HWHNHJ\ROGDO~PHJiOODSRGiVD$]|QNpQWHVPHJiOODSRGiVRN QDJ\UpV]pWDWD](3$|QiOOyDQYDJ\PiVV]|YHWVpJLKLYDWDORNNDON|]|VHQIHOJ\HOL$]
HXUySDL YDJ\ D MDSiQ SpOGiYDO HOOHQWpWEHQ D] 86ÈEDQ D] |QNpQWHV PHJiOODSRGiVRNDW HOVVRUEDQ ~J\ WHNLQWLN PLQW D PHJOpY OHYHJ WDODM pV Yt]YpGHOPL YDODPLQW WR[LNXV NLERFViWiVRNUD YRQDWNR]y MRJV]DEiO\L HOtUiVRN KDWpNRQ\ViJiQDN Q|YHOpVpUH D YpJUHKDMWiV HOVHJtWpVpUH V]ROJiOy NLHJpV]tW HV]N|]|NHW $] DODSYHW NO|QEVpJ WHKiW KRJ\ PtJ (XUySiEDQpV-DSiQEDQLQNiEEDW|EELN|UQ\H]HWYpGHOPLV]DEiO\R]yHV]N|]KHO\HWWHVtWpVHNpQW KDV]QiOMiN D] |QNpQWHV HV]N|]|NHW D] DGRWW V]DNWHUOHWHQ DGGLJ D] 86ÈEDQ D MRJV]DEiO\RNEDQOHIHNWHWHWWN|YHWHOPpQ\HNMREEYpJUHKDMWiViKR]DONDOPD]]iNH]HNHW
$](J\HVOWÈOODPRNEDQP&N|G |QNpQWHVPHJiOODSRGiVRNPLQWHJ\IHOpWDNOtPDYiOWR]iVVDO NDSFVRODWRV SURJUDPRN WHV]LN NL (]HN N|]|WW QHPFVDN D] HQHUJLDWDNDUpNRVViJL FpORN V]HUHSHOQHNKDQHPDPHWiQpV&)&FV|NNHQWpVVHONDSFVRODWRVDNLV(]HNHQW~OPHQHQD]RN D] LSDUiJDN DPHO\HN OHJLQNiEE pULQWHWWHN D N|YHWNH]N D YHJ\LSDU IpPEHYRQDW NpV]tW V]HNWRU NRODMILQRPtWiV DXWyJ\iUWiV Q\RPGDLSDU YDV pV DFpOLSDU YDODPLQW D] HOHNWURQLNDL HV]N|]J\iUWiV
$]|QNpQWHVPHJiOODSRGiVRNV]DNWHUOHWLPHJRV]OiVD.DQDGiEDQ
.DQDGiEDQD]LSDUEDQOpWUHKR]RWWN|]HO|QNpQWHV PHJiOODSRGiVNpWKDUPDGD WiUJ\DOiVRV PHJiOODSRGiVKDUPDGDHJ\ROGDO~PHJiOODSRGiVpVFVDNNHWW |QNpQWHVN|]|VSURJUDP,WWLV D YHJ\LSDU D] HQHUJLDKDWpNRQ\ViJ YDODPLQW D FVRPDJROyHV]N|] J\iUWiV WHUOHWpUH HVLN D PHJiOODSRGiVRNV~O\SRQWMD$]pULQWHWWV]HNWRURNDWpVDV]DNWHUOHWHNHWPXWDWMDEHDNpWiEUD
iEUD $] |QNpQWHV PHJiOODSRGiVRN PHJRV]OiVD .DQDGiEDQ D NO|QE|] V]HNWRURN N|]|WWEDQ
'E
0H]JD]GDViJ
*pSJ\iUWiV3DStUJ\iUWiV$XWyLSDU)RJ\DV]WiVLFLNNHN.RODM9HJ\LSDU%iQ\iV]DW(QHUJLKDWpNRQ\ViJ6]iOOtWiV&VRPDJROiV6]ROJiOWDWiVRN(J\pE
)RUUiV2(&'S
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]
WiEOi]DW0LOOLy)W
.LHPHOWWHUOHWHN %0 (0 )90 *0 +0 ,60 ,0 .|0 .+90.6+ .0 0(+ 1.g020 30 6]&V0 .OV
IRUUiV gQNRU PiQ\]DW
*D]GiONR GyN
gVV]H VHQ 9HUVHQ\NpSHVVpJMDYtWiVD
N|UQ\H]HWNtPpOPyGV]HUHNNHO pVHOMiUiVRNNDO
9(56,1HKp]I&WRODM IHOGROJR]iVLSURMHNW
.LHPHOWWHUOHW7HOHSOpVLpV WHUPHOpVLKXOODGpNJD]GiONRGiV IHMOHV]WpVH
&,SDULKXOODGpNPHJHO]pVLpV KDV]QRVtWiVLEHUXKi]iVRN
WiPRJDWiVD
'.RUV]HU&UHJLRQiOLVWHOHSOpVL KXOODGpNpJHWP&YHN
NLDODNtWiViQDNWiPRJDWiVD
+8/,,7HUPpNGtMDV
WHUPpNHNEONHOHWNH]KXOODGpNRN
EHJ\&MWpVHpVKDV]QRVtWiVD
.LHPHOWWHUOHW$Q\DJpV HQHUJLDKDWpNRQ\ViJMDYtWiVDpVD PHJ~MXOyHQHUJLDIRUUiVRN HOWHUMHV]WpVHpVDKXOODGpNRN HQHUJHWLNDLKDV]QRVtWiVD
(1,0iWUDL(UP&5W[
0:WHOMHVtWPpQ\&HUP&YL EORNNMDLQDNNpQWHOHQtW EHUHQGH]pVH
(1,(UP&IHMOHV]WpVL3URJUDP (U
P&YHN .|UQ\H]HWNtPpON|]OHNHGpVL
LQIUDVWUXNW~UDIHMOHV]WpVH