2011 Med Mnemonics

145
&RPSLOHG 860/( 6WHS 0QHPRQLFV (PDLO JSDF#JPDLOFRP

Transcript of 2011 Med Mnemonics

  • &RPSLOHG860/(6WHS0QHPRQLFV

    (PDLOJSDF#JPDLOFRP

  • 2QOLQH0QHPRQLF5HVRXUFHV

    KWWSIRUXPVVWXGHQWGRFWRUQHWDUFKLYHLQGH[SKSWKWPO KWWSZZZPHGLFDOPQHPRQLFVFRP KWWSZZZYDOXHPGFRPPQHPRQLFVSKS KWWSIRUXPVVWXGHQWGRFWRUQHWVKRZWKUHDGSKS"W KWWSIRUXPVVWXGHQWGRFWRUQHWVKRZWKUHDGSKS"W KWWSZZZGUNKDOGRRQFRPH%RRNV

    0QHPRQLFVDQG6WXG\7LSVIRU0HGLFDO6WXGHQWVQGHGLWLRQSGI

    *HQHUDO3ULQFLSOHV %HKDYLRUDO6FLHQFH

    (SHGHPLRORJ\%LRVWDWLVWLFV &DVHFRQWURORGGVUDWLRLVLQSDVWFRKRUWVWXG\LVLQIXWXUHUHODWLYHULVN

    2GGVUDWLRFRPHVEHIRUHUHODWLYHULVNDOSKDEHWLFDOO\ (YDOXDWLRQRIGLDJQRVWLFWHVWV

    61287 6H1VLWLYLW\UXOHV28763,1 63HFLILFW\UXOHV,1 ,IFDQFUHDWH;GLVHDVHWHVWWDEOH)$3QRWHWKDW

    GLVHDVHZKLFKFRPHVILUVWDOSKDEHWLFDOO\LVRQWRSFDQXVHWKHIROORZLQJ

    9HUWLFDO6HQVLWLYLW\VSHFLILFLW\IRUPXODVYDJLQDLV9(57,&$/VOLWWKHYDJLQDLV6(16,7,9(

    +RUL]RQWDO339139IRUPXODV 7KHJRRGYDOXH7371DOZD\VJRHVRQWRSRIWKHUDWLR

    DVZHZDQWWKHVHQXPEHUVWREHKLJK ,QFLGHQFHLVQHZLQFLGHQWVRYHUDWLPHSHULRGZKHUHDVSUHYDOHQFHLV

    MXVWWKHSHUFHQWDJHRIWKHSRSXODWLRQZLWKWKHGLVHDVHDWDJLYHQWLPH 3RVLWLYHDQGQHJDWLYHVNHZ

    0HGLDQLVDOZD\VLQWKHPLGGOHZKHQPHDQPHGLDQDQGPRGHDUHUDQNHGPRGHLVORJLFDOO\SODFHGSRLQWDWSHDNPHGLDQLVPLGGOHPHDQLVRQRWKHUHQG

    2GGVUDWLRYVUHODWLYHULVN &DQDJDLQFUHDWH;WDEOHXVLQJWKHDOSKDEHWLFDORUGHUUXOH

    'LVHDVHFRPHVEHIRUH5LVNIDFWRUIRUPXODVDUHSUHWW\ORJLFDO %LDV

    3\JPDOLRQHIIHFW5HVHDUFKHUVEHOLHILQHIILFDF\RI7[FKDQJHVWKHRXWFRPHRIWKHWUHDWPHQW5HVHDUFKLVVXFKDQDUURJDQW

  • 3
  • 7% &KLFNHQSR[ *RQRUUKHD

    /HDGLQJFDXVHVRIGHDWK %DELHV&RQJHQLWDO6,'656'ORJLFDO 7KHVHSHRSOHDUHIXFNLQJLGLRWVLQMXULHVKRPLFLGH

    VXLFLGH 0HGLFDUHDQG0HGLFDLG

    0HGLFDL'LVIRUWKH'HVWLWXWH0HGLFDU(LVIRUWKH(OGHUO\!JHQHUDOO\DOWKRXJKIRUWKRVHZLWKFHUWDLQGLVDELOWLHVWKRVHZLWK(65'

    0HGLFDUHSDUWV 3DUW$)LUVWDQGPRVWVHULRXV+RVSLWDOQXUVLQJ

    KRVSLFHKRPHKHDOWKFDUH 3DUW%/HVVVHULRXVWKDQ$2XWSDWLHQWGRFWRUV

    VHUYLFHV3727 3DUW''UXJV

    (WKLFV 0DOSUDFWLFH7KHIRXU'VIRU'RRP\RXDUH'RRPHGLI\RXJHWLQ

    WURXEOHIRUPDOSUDFWLFH ''XW\SK\VLFLDQKDGDGXW\WRWKHSDWLHQW ''HUHOLFWLRQSK\VLFLDQEUHDFKHGWKDWGXW\ ''DPDJHSDWLHQWVXIIHUVKDUP ''LUHFWWKHEUHDFKRIGXW\LVZKDWFDXVHGWKHKDUP

    'HYHORSPHQW 'HYHORSPHQWDO0LOHVWRQHV

    %ORFNVDJHLQ\HDUVWLPHV \HDUEORFNV \HDUVEORFNV \HDUVEORFNV

    /DQJXDJH PRQWKV$IHZZRUGV ZRUGVDQGZRUGVHQWHQFHVDWDJH ZRUGVDQGFRPSOHWHVHQWHQFHVDW\HDUV

    7RLOHWWUDLQLQJDW\HDUV3HHDWDJH 5LGHVWULF\FOHDW\HDUV &RRSHUDWLYHSOD\DW\HDUV7KLQNDERXWFRRSYLGHRJDPHFDQ

    KDYHXSWRSOD\HUV $WWKHVDPHWLPHFDQKDYHLPDJLQDU\IULHQG&RRSHUDWH

    ZLWKLPDJLQDU\IULHQGDW\HDUVWRR

  • *HQGHULGHQWLW\%HWZHHQDQG\HDUV EUHDVWVDGGSHQLVIRU\HDUV

    0RWRUPLOHVWRQHV )RXU\HDUV&DQFRS\DVWLFNILJXUH6WLFNILJXUHKDV

    IRXUOLPEVFDQDOVRKRSRQRQHIRRWOLPE/LQNWRVWLFNILJXUHWKLQJ

    7KUHH\HDUV&RSLHVOLQHRUFLUFOHOLQHKDSSHQVULJKWEHIRUHPXOWLSOHOLQHV

    7DQQHU6WDJHV *LUOV%ORQGH*LUOV3UDQFH$QG3OD\

    %RREV *URZWKVSXUW 3XELFKDLU $[LOODU\KDLU 3HULRG

    *ULHI 1RUPDOJULHIVWRSVZLWKLQPRQWKVSDWKRORJLFDIWHUWKLV$IWHU

    WZRPRQWKVLWLVWRRORQJ\RXSXVV\DVVFU\EDE\DQG\RXQHHGWRPRYHRQ

  • .XEOHU5RVVJULHIVWDJHV 'HQLDO$QJHU%DUJDLQLQJ*ULHYLQJ$FFHSWDQFH'HDWK$UULYHV

    %ULQJLQJ*UDYH$GMXVWPHQWV 3K\VLRORJ\

    6OHHS 6OHHSVWDJHV

    $WQLJKW%$76'ULQN%ORRG %HWD$ZDNHH\HVRSHQ $OSKD$ZDNHH\HVFORVHG 7KHWD6WDJHOLJKWVOHHS 6OHHS6SLQGOHVDQG.FRPSOH[HV6WDJH

    GHHSHU 'HOWD'HHSHVWQRQ5(0VOHHSGHOWDZDYHV

    KDYHORZHVWIUHTXHQF\KLJKHVWDPSOLWXGH %HWD'XULQJ5(0

    5(0 5(0VOHHSLVOLNHVH[,QFUHDVHSXOVHUDWHSHQLVFOLWRULV

    JHWKDUGWXPHVFHQFHGHFUHDVHVZLWKDJH 1DUFROHSV\

    +\SQD*2JLFKDOOXFDWLQDWLRQV:KLOH*2LQJWREHG +\SQRSR0SLF-XVWEHIRUHDZDNHQLQJLQWKH0RUQLQJ

    %LRFKHPLVWU\ 0ROHFXODU

    &KURPDWLQVWUXFWXUH +HWHUR&KURPDWLQ +LJKO\&RQGHQVHG +LVWKHOLQNHUUHJLRQEHWZHHQKLVWRQHRFWDPHUEDOOVEHDGVRQD

    VWULQJ7KHLVOLNHWKHOLWWOHSLHFHRIVWULQJFRQQHFWLQJWKHP 1XFOHRWLGHV

  • 3XULQHV$*DVLQ$*DQJVWHU7XSDFWDXJKWXVKRZSXUHJDQJVWHUVDUH&87WKH3
  • 3URWHLQV\QWKHVLV $73IRUW51$$FWLYDWLRQ*73IRUW51$*ULSSLQJDQG*RLQJ

    SODFHVWUDQVORFDWLRQ &HOOXODU

    &HOOF\FOHSKDVHV * *DSRU*URZWK6 6\QWKHVLVRI'1$DVLQUHSOLFDWLRQ

    3533V\QWKHWDVHLVLQKLELWHGE\PHUFDSWRSXULQH0HUFLVVODQJIRUNLOOLQJVRPHRQHSHUS3533LVVODQJIRUSHUSHWUDWRUXVHGE\SROLFH,DPJRLQJWR0HUFWKH3533

    0LFURWXEXOH .LQHVLQPRYHVDQWHURJUDGHWRPLFURWXEXOHVDPHGLUHFWLRQLWLV

    JURZLQJLQLHQHJDWLYHWRSRVLWLYH\RXUDXQWLV\RXUNLQ '\QHLQPRYHVUHWURJUDGH

    )UHLGUHLFKDWD[LD&OXPVLQHVVFDQUHPHPEHUWKLVIURPDWD[LD'XHWR*$$UHSHDW:KHQWKH\IDOOWKH\DUHOLNH*$$DDDDDD

    ;,QDFWLYDWLRQ 7KHJHQHWKDWFDXVHVLWLV;,67PDNLQJVXUHWKDWRQO\RQH

    IXQFWLRQDO;FKURPRVRPH;,676H[LVWV /DERUDWRU\WHFKQLTXHV

    61R:'5R36RXWKHUQEORWDQDO\]HV'1$'1$SUREH1RUWKHUQEORWDQDO\]HV51$'1$SUREH:HVWHUQEORWDQDO\]HV3URWHLQXVLQJDQDQWLERG\SUREHZKLFKLVORJLFDODV'1$51$FDQQRWELQGDSURWHLQ

    &ROODJHQ 6WURQJ6OLSSHU\%ORRG\%0

    7\SH,FROODJHQ6WURQJ%RQHVNLQWHQGRQGHQWLQ 7\SH,,FROODJHQ6OLSSHU\&DUWLODJHQXFOHXVSXOSRVXV 7\SH,,,FROODJHQ%ORRG\KLJKO\YDVFXODUWLVVXHOLNH

    JUDQXODWLRQWLVVXHEORRGYHVVHOVXWHUXVZKLFKEOHHGVIHWDOWLVVXH

    7\SH,9FROODJHQ%DVHPHQWPHPEUDQH%0RUEDVDOODPLQD

    %H6R7RWDOO\&RRO5HDG%RRNV!%RQH6NLQ7HQGRQ&DUWLODJH5HWLFXOLQ%DVHPHQWPHPEUDQH

    7\SH21(E21( 7\SH7:2FDU7:2ODJH 7\SH)285XQGHUWKH)/225

    &ROODJHQ6\QWKHVLV 7HUPLQDOFOHDYDJH\LHOGV7URSRFROODJHQ

    &ROODJHQV\QWKHVLVGLVHDVHV 7KHUK\PLQJWKLQJVPQHPRQLFVLQFOXGHGLQFROODJHQGLVHDVHV

    GXHWR$OSRUWV $OSRUWVV\QGURPH&DQWVHHRFXODUGLVRUGHUV

    FDQWSHHQHSKULWLFV\QGURPHFDQWKHDUGHDIQHVV

  • %DVHGRQSUREOHPZLWKW\SH,9FROODJHQWKH%0W\SH%DVHPHQWPHPEUDQHFROODJHQLVLPSRUWDQWLQNLGQH\HDUVH\HV

    6MRJUHQVV\QGURPH&DQWVHHFDQWVSLWFDQWFOLPEXSVKLW

    5HLWHUVV\QGURPH&DQWVHHFDQWSHHFDQWFOLPEDWUHH

    *HQHWLFV +HWHUR3/$60\3UHVHQFHRIERWKQRUPDODQGPXWDWHGPLWRFKRQGULDO

    '1$UHVXOWLQJLQYDULDEOHH[SUHVVLRQLQPLWRFKRQGULDOLQKHULWHGGLVHDVH&DQDVVRFLDWHZLWKPLWRFKRQGULDO'1$EHFDXVHLWLVFLUFXODUOLNHD3/$60LG

    ,PSULQWLQJ 3UDGHU:LOOL'HOHWLRQRIQRUPDOO\DFWLYH3DWHUQDODOOHOH

    PDWHUQDODOOHOHLVPHWK\ODWHGDQGQRQIXQFWLRQDO +\SHUSKDJLDK\SRJRQDGLVPK\SRWRQLD

    $QJHO0DQVV\QGURPH'HOHWLRQRIQRUPDOO\DFWLYH0DWHUQDODOOHOHSDWHUQDODOOHOHLVPHWK\ODWHGDQGQRQIXQFWLRQDO

    6HL]XUHVDWD[LDLQDSSURSULDWHODXJKWHUKDSS\SXSSHW $XWRVRPDOGRPLQDQWGLVHDVHV

    $FKRQGURSODVLD0LGJHWZDQWVWRSUHWHQGWKH\DUHDOOGRPLQDQWWRFRPSHQVDWH$XWRVRPDOGRPLQDQWGLVHDVHEDVHGRQILEUREODVWJURZWKIDFWRU)*)UHFHSWRUPXWDWLRQ

    $'3.''XHWRDPXWDWLRQRQFKURPRVRPHWKHUHDUHOHWWHUVLQSRO\F\VWLFNLGQH\GLVHDVH$'LVIRUDXWRVRPDOGRPLQDQW

    )DPLOLDO$'HQRPDWRXVSRO\SRVLV!$XWRVRPDO'RPLQDQWRQFKURPRVRPHDQGILYHOHWWHUVLQSRO\S

    +XQWLQJWRQVGLVHDVH$XWRVRPDOGRPLQDQWPXWDWLRQRQFKURPRVRPH+XQWLQJIRRGWULQXFOHRWLGHUHSHDWRI&$*IRU&UD]\GHPHQWLD$QG*\UDWLQJFKRUHLIRUPPRYHPHQWV

    1HXURILEURPDWRVLVW\SHYRQ5HFNOLQJKDXVHQVGLVHDVH!&KURPRVRPHOHWWHUVRQYRQ5HFNOLQJKDXVHQ

    1HXURILEURPDWRVLVW\SH!1)JHQHRQFKURPRVRPHW\SH

    9RQ+LSSHO/LQGDXZRUGV&KURPRVRPH $XWRVRPDOUHFHVVLYHGLVHDVHV6$7&30*$6+,DFWXDOO\DWWHQGHG

    FODVVDQG6$7LQ&30IRURQFHDQG,HQGHGXSZLWKD*$6+LQP\KHDGEHFDXVH,VKRWP\VHOI

    *O\FRJHQVWRUDJHGLVHDVHV$OELQLVP6LFNOHFHOO+HPRFKURPDWRVLV6SKLQJROLSLGRVHVH[FHSW)DEU\V$53.'7KDODVVHPLDV&\VWLFILEURVLV3KHQ\ONHWRQXULD0XFRSRO\VDFFKDULGRVHVH[FHSW+XQWHUV

    ;OLQNHGGLVHDVHV 0XVFXODUG\VWURSK\

  • 'XFKHQQHV 'HOHWHG'\VWURSKLQGXHWRIUDPHVKLIWPXWDWLRQ

    '\VWURSKLQJHQHLV'0'IRU'XFKHQQH0XVFXODU'\VWURSK\

    /RQJHVWJHQHNQRZQ'DPQ0DVVLYH'LFN3LFWXUHDORQJSHQLV

    )UDJLOH;V\QGURPH%LJIUDJLOHEDOOVPDFURRUFKLGLVP7KLVLVDVVRFLDWHGZLWKPHQWDOUHWDUGDWLRQQGPRVWFRPPRQLQKHULWHGPHQWDOUHWDUGDWLRQDIWHU'RZQV\QGURPHDVWKH\DUHVRIRFXVHGRQWKHLUEDOOVVH[WKH\DUHGXPEPHQFDQRQO\WKLQNZLWKRQHKHDGDWRQFH/RJLFDOO\KDYHDSURPLQHQWMDZDVWKLVLVPDVFXOLQHDQGFDQEHDVVRFLDWHGZLWKWKHELJEDOOV7KHHDUVJHWMHDORXVRIWKHWZRELJEDOOVVRWKHWZRHDUVJHWELJWRR

    &DXVHVE\&**UHSHDWWKH&LVOLNHWKHSHQLVDQG**LVOLNHWKHEDOOV

    )UDJLOH;)05JHQH)UDJLOH0HQWDO5HWDUGDWLRQ )UDJLOH;H;WUDODUJHWHVWHVMDZHDU

    7ULQXFOHRWLGHUHSHDWH[SDQVLRQGLVHDVHV +XQWLQJWRQVGLVHDVHP\RWRQLFG\VWURSK\)ULHGUHLFKVDWD[LD

    IUDJLOH;V\QGURPH7U\WULQXFOHRWLGHKXQWLQJIRUP\IULHGHJJV;

    &$*+XQWLQJWRQV&UD]\GHPHQWLD$QG*\UDWLQJFKRUHLIRUP

    &7*0\R7RQLFG\VWURSK\ &**)UDJLOH;V\QGURPH+DYHELJEDOOV&**LV

    OLNHDSHQLVDQGEDOOV&LVWKHSHQLV*VDUHWKHEDOOV *$$)ULHGUHLFKVDWD[LD$WD[LDLPSOLHVIDOOLQJGRZQ

    )DOODQG\HOO*$$DDDD $XWRVRPDOWULVRPLHV

    'RZQV\QGURPH5(7$5'6 5HWDUGHG (SLFDQWKDOIROGV 7ULVRP\ $OSKDIHWRSURWHLQLVORZ 5HWDUGHG 'XRGHQDODWUHVLD 6LPLDQFUHDVH

    7KHWKUHHWULVRPLHVFRPSDWLEOHZLWKOLIHDUH'RZQVWULVRPH(GZDUGVWULVRPHDQG3DWDXVWULVRP\

    'RZQV'ULQNLQJDJHLV (GZDUGV(OHFWLRQDJHLV 3DWDXV3XEHUW\DJHLVa

    3DWDXVV\QGURPH!FOHIWOLS3DODWHKROR3URVHQFHSKDO\3RO\GDFW\O\

  • (GZDUGVV\QGURPH7KLQN(GZDUGIURPWZLOLJKW

    &RQJHQLWDOKHDUWGLVHDVHEHFDXVHKHLVDVDGOLWWOHSXVV\ZLWKDEURNHQKHDUWRYHU%HOOHVHYHUHPHQWDOUHWDUGDWLRQEHFDXVHKHLVUHWDUGHGURFNHUERWWRPIHHWEHFDXVHKHJHWVSXVV\OLNHDURFNVWDUFOHQFKHGKDQGVEHFDXVHKHLVDOOODPHDQGGHVSHUDWHO\LQORYHZLWK%HOOHDQGKHFOHQFKHVKHUKDQGSURPLQHQWRFFLSXWKDVDELJDVVKHDGORRNDWKLPLWVKRUULILF

    &ULGXFKDWV\QGURPH &U\RIWKHFDW+LJKSLWFKHGFU\LQJPHZLQJPLFURFHSKDO\DV

    FDWVKDYHVPDOOKHDGV 'HOHWLRQRIVKRUWDUPRIFKURPRVRPH&DWVDUHVKRUW

    OHWWHUVLQNLWW\ :LOOLDPVV\QGURPH(OYHQIDFLHV:LOO)HUUHOLQWKHPRYLH(OI TGHOHWLRQV\QGURPHV!&$7&+

    &&OHIWSDODWH $$EQRUPDOIDFLHV 77K\PXVDSODVLD7FHOOGHILFLHQF\ &&DUGLDFGHIHFWV

    ++\SRFDOFHPLDVHFRQGDU\WRSDUDWK\URLGDSODVLD &RIDFWRUVIRU3'+DOSKDNHWRJOXWDUDWHEUDQFKHGFKDLQNHWRDFLG

    GHK\GURJHQDVH7HQGHU/RYLQJFDUHIRU1DQF\ 7KLDPLQHS\URSKRVSKDWH733 /LSRLFDFLG &RHQ[\PH$ )$' 1$'

    .UHEVF\FOHVXEVWUDWHV&LWUDWH,V.UHEV6WDUWLQJ6XEVWUDWH)RU0DNLQJ2[DORDFHWDWH

    &&LWUDWH ,,VRFLWUDWH .DOSKD.HWRJOXWDUDWH

  • 66XFFLQ\O&R$ 66XFFLQDWH ))XPDUDWH 00DODWH 22[DORDFHWDWH

    *O\FRJHQ6WRUDJH'LVHDVHV 9HU\3RRU&UDFNHUV$FTXLUH0RUH+HUSHV9RQ*LHUNHVW\SH

    ,3RPSHVW\SH,,&RULVW\SH,,,$QGHUVHQW\SH,90F$UGOHVW\SH9+HUVW\SH9,

    9RQ*LHUNHVGLVHDVH7\SH 1XPEHULVPRVWLPSRUWDQWORVHWKHDEVROXWHO\

    IXQGDPHQWDOWKLQJWKDWDOORZVOLYHUWRUHOHDVHJOXFRVHWREORRGJOXFRVHSKRVSKDWDVH

    3RPSHVGLVHDVH7\SH,,3RPSRP&KHHUOHDGHUFKHHUOHDGHUVOLHDERXWHYHU\WKLQJWKXV3RPSHLVWKHO\VRVRPHVWRUDJHGLVHDVH

    3RPSHVWUDVKHVWKH3XPSFDUGLRPHJDO\DQGV\VWHPLFILQGLQJVOHDGLQJWRHDUO\GHDWK

    0XOWLSO\E\IRUWKLVDQGW\SHWRVHHZKLFKEUDQFKLQJHQ]\PHLVPHVVHGXSW\SH DOSKDJOXFRVLGDVHLVPHVVHGXSKHUH

    &RULVGLVHDVH7\SH,,, 0XOWLSO\E\IRUWKLVDQGW\SHWRVHHZKLFKEUDQFKLQJ

    HQ]\PHLVPHVVHGXSW\SH DOSKDJOXFRVLGDVHLVPHVVHGXSKHUH

    .ZDVKLRUNRU'LVWHQGHGDEGRPHQSOXPSDQGGLVWHQGHGOLNHDVTXDVKNZDVKYV0DUDVPXVZKHUHWKH\DUHZDVWLQJDZD\GHILFLHQWLQFDORULHVLQJHQHUDOQRWSURWHLQVSHFLILFDOO\OLNHLQ.ZDVKLRUNRU

    .ZDVKLRUNRUUHVXOWVIURPDSURWHLQGHILFLHQW0($/ 00DOQXWULWLRQ ((GHPD $$QHPLD //LYHUIDWW\GXHWRGHFUHDVHGDSROLSRSURWHLQ

    V\QWKHVLV 0DUDVPXVUHVXOWVLQ0XVFOHZDVWLQJDVZHOODVJHQHUDOWLVVXH

    ZDVWLQJORVVRIVXEFXWDQHRXVIDW &\VWLQXULD+HUHGLWDU\GHIHFWRIUHQDOWXEXODUDPLQRDFLGWUDQVSRUWHUIRU

    WKH&2/$DPLQRDFLGV&\VWHLQH2UQLWKLQH/\VLQH$UJLQLQH 0DSOH6\UXS8ULQH'LVHDVH%ORFNHGGHJUDGDWLRQRI%5$1&+('

    DPLQRDFLGV,OH/HX9DO,/RYH9HUPRQWPDSOHV\UXSIURPPDSOHWUHHVWKDWKDYH%5$1&+(6

    $%&(Q]\PHV3\UXYDWHFDUER[\ODVH$FHW\O&R$&DUER[3URSLRQ\O&R$&DUER[

    $73%LRWLQ&2

  • $PLQRDFLGDOSKDNHWRDFLGSDLUV $ODQLQHDQG3\UXYDWH$O$IXFNLQJDSLHOLNHWKHJX\LQ

    $PHULFDQ3LH *OXWDPDWHDQGDOSKDNHWRJOXWDUDWH*OXHLQDNH\KROH $VSDUWDWHDQGR[DORDFHWDWH$QDVVDQGDQR[OLNHDGRQNH\

    DQGDQR[ 1XWULWLRQ

    9LWDPLQV $&($QWLR[LGDQWYLWDPLQV$&DQG( :DWHUVROXEOH

    %7KLDPLQH733 *HWEHULEHULZKHQGHILFLHQWLPDJLQHLWVSHOOHGDV

    %HU%HU %5LERIODYLQ)$')01

    )$'DQG)01DUHGHULYHGIURPULER)ODYLQ% $73 $PRXQWRI$73GHULYHGIURP)$'+

    'HILFLHQF\FDXVHVWKH&V!&KHLORVLVDQG&RUQHDOYDVFXODUL]DWLRQ

    %1LDFLQ1$' 1$'GHULYHGIURPQLDFLQ% $73 7KH'V'LDUUKHD'HUPDWLWLV'HPHQWLD

    %:$51,1*WKHUHLVQR%%:KRUH:KRUHVDUHZRUWKOHVVGRQRWKLQJ7KHUHLVQR%

    %3DQWRWKHQLFDFLG&R$!3$17RWKHQLFDFLG!)LQJHUDJLUOZLWKILQJHUVVKHZLOOSDQW

    3DQWRWKHQ$LVLQ&R$ %3\U3

  • 9LWDPLQ((DVLQ(FVWDF\WKHGUXJ72&RSKHURO/LNHWRNLQJDMRLQW

    $QWLR[LGDQWWKDWSURWHFWV5%&VDQGPHPEUDQHVIURPIUHHUDGLFDOGDPDJH(LVIRU(U\WKUR\F\WHV

    0HWDEROLVP 6&,'FDQEHGXHWRDGHQRVLQHGHDPLQDVH$'$GHILFLHQF\DV

    DFFXPXODWHGDGHQLQHLVWR[LFWRO\PSKRFXWHV$'$6&,'OLNHDWWDNLGQRWHWKDWWKLVLVWKHEXEEOHER\GLVHDVHVRFDQDVVRFLDWHZLWKNLG

    *O\FRJHQV\QWKHVLV ERQGVDUHVWUDLJKWIRXU ZKRUH JLUO VWUDLJKW 127VWUDLJKWEUDQFKHGVDWDQGHYLO

    KRPRVH[XDOLW\ $%&FDUER[\ODVHV5HTXLUH$73%LRWLQ&2RIWKHPDUHUHOHYDQW

    WRVWHS 3\UXYDWHFDUER[\ODVHXVHGLQJOXFRQHRJHQHVLV $FHW\O&R$FDUER[\ODVHXVHGLQ)$V\QWKHVLV 3URSLRQ\O&R$&DUER[\ODVHXVHGLQEHWDR[LGDWLRQRIRGGFKDLQ

    )$V 'LHWDU\OLSLGV

    7ZRHVVHQWLDO)$V 7ZRWKLQJVDUHHVVHQWLDOLQOLIHJHWWLQJGUXQNDQGJHWWLQJ

    OD\HG /LQROHQLFDFLG/LQR/($1LFDFLG,QUDS

    PXVLFOHDQLVDVODQJWHUPIRUWKHSXUSOHGULQNWKH\XVHWRJHWGUXQNKLJKKWWSHQZLNLSHGLDRUJZLNL3XUSOHBGUDQNSXUSOHGULQNLVHVVHQWLDO

    /LQROHLFDFLG!/LQR/$

  • ;OLQNHGUHFHVVLYHJD\JLUO\;FKURPRVRPHWKHRWKHUVSKLQJROLSLGRVLVGLVHDVHVDUHDXWRVRPDOUHFHVVLYHH[FHSW+XQWHU

    %XUQLQJVHQVDWLRQLQWKHKDQGVEHFDXVHWKHJD\PDQLVVRIODPLQJDQGVSHQGVVRPXFKWLPHJUDEELQJKRWSHQLVHVDOVRIHHWGXHWRIRRWIHWLVKLVVXHV

    6PDOOUDLVHGUHGGLVKSXUSOHEOHPLVKHVRQWKHVNLQDQJLRNHUDWRPDV/LNHWKH67'OHVLRQVJD\PHQRIWHQJHW

    *D\SHRSOHDUHIHPLQLQHOLNH*DOV'HILFLHQWHQ]\PHLVDOSKD*$/DFWRVLGDVH$

    &HUDPLGHWULKH[RVLGDVHDFFXPXODWHVDVJD\PHQHQMR\PDNLQJWKLQJVZLWKFHUDPLFV

    (\HPDQLIHVWDWLRQVHVSHFLDOO\FORXGLQHVVRIWKHFRUQHDWKHIDEXORXVJD\PDQLVDFWXDOO\XVLQJDFRUQHDODFFHVVRU\KHUHWRPDWFKKLVFORXG\SXUVHVHHLPDJHEHORZ

  • ,ISWGRHVQRWJHWHQ]\PHUHSODFHPHQWWKHUDS\DWULVNIRUJHWWLQJUHQDOIDLOXUH7KLQNRIJD\PDQJHWWLQJS\HORQHSKULWLVIURPDQDOVH[DQG(FROL

    1LHPDQQ3LFNGLVHDVH 1RPDQSLFNV1LHPDQQ3LFNKLVQRVHZLWKKLVVSKLQJHU

    VSKLQJRP\HOLQDVHLVWKHGHILFLHQWHQ]\PHOHDGLQJWRDFFXPXODWLRQRIVSKLQJRP\HOLQ

    )RDPFHOOV/LNHIRDP\ERRJHUIURPQRVHSLFNLQJ &KHUU\UHGVSRWRQPDFXOD)URPSLFNLQJLW

    7D\6DFKVGLVHDVH7KLQNVDFKVWKDYHWKHH[SHQVLYHFORWKLQJVWRUH

    /\VRVRPHVZLWKRQLRQVNLQ2QLRQVNLQGUHVVLVVRKRWWKLVVHDVRQVRLVFKHUU\UHGVSRWRQPDFXODWRPDWFKUHGMHZHOQHFNODFH

    7D\6D;7D\VDFKVODFNVKH;RVDPLQLGDVH$OHDGVWRDFFXPXODWLRQRI*0JDQJOLRVLGH

    .UDEEHVGLVHDVH7KLQNFUDE

    &UDESHRSOHIURP6RXWK3DUNVHHQLQLPDJHDERYHZHUHIURPRXWHUVSDFHRXWHUVSDFHLVJDODFWLFWKXV.UDEEHVLVEDVHGRQ*DODFWRFHUHEURVLGDVHGHILFLHQF\DQGKDVDFFXPXODWLRQRIJDODFWRFHUHEURVLGH

  • 0HWDFKURPDWLFOHXNRG\VWURSK\ 0HWDFKURP&RORUVXOIXUKDVD\HOORZFRORUWKXV

    GHILFLHQWHQ]\PHLVDU\OVXOIDWDVH$DQGFHUHEURVLGHVXOIDWHDFFXPXODWHVEXWEHFDUHIXOEHFDXVHVXOIDWHDOVRVKRZVXSLQ+XUOHU+XQWHUV

    +XQWHUVV\QGURPH ;PDUNVWKHVSRWIRUWUHDVXUHKXQWHUWKXVLWLV;OLQNHG +XQWHUV PLOGKXUOHUVDJJUHVVLYHEHKDYLRUDKXQWHULV

    YHU\DJJUHVVLYH +XQWHUVVHHFOHDUO\VRQRFRUQHDOFORXGLQJXQOLNH+XUOHUV

    WKHVLPLODUEXWPRUHVHYHUHGLVHDVH +XUOHUVV\QGURPH

    ,KDYHDQXQFOH+XUOH\KHLVELJDQGXJO\OLNHDJDUJR\OHJDUJR\OLVP

    +XQWHUVDQG+XUOHUVKDYH+HSDUDQVXOIDWHDFFXPXODWLRQ )DWW\DFLGPHWDEROLVP

    6

  • EDGDVVVRKHLVQRWGHVSHUDWHIRUHQHUJ\DWDOOVRQRWNHWRJHQLF

    $UJDQG+LVDUHUHTXLUHGLQJURZWK*X\V+LVZDQWWRJHWELJDQGJURZDQGZKHQWKH\GRWKH\JR$UJOLNHSULPLWLYHFDYHPHQ

    8UHDF\FOH 2UGLQDULO\&DUHOHVV&UDSSHUV$UH$OVR)ULYRORXV$ERXW8ULQDWLRQ

    2UQLWKLQH&DUEDPR\OSKRVSKDWH&LWUXOOLQH$VSDUWDWH$UJLQLQRVXFFLQDWH)XPDUDWH$UJLQLQH8UHD

    0\XUHDF\FOHLQVWHDGRIWKHODPHRQHLQ)LUVW$LG&RIIHH$QG$OFRKRO)RUP$JJUHJLRXV8ULQH2YHUORDG

    $PLQRDFLGGHULYDWLYHV 7U\SWRSKDQ8VHGWRPDNHVHULWRQLQVHULWRQLQLVZKDWJHWV\RX

    KLJKLQHFVWDF\HFVWDV\WULSLVEDVHGRQWU\SWRSKDQ 6HULWRQLQLVFRQYHUWHGWRPHODWRQLQNLQGRIOLNHKRZ\RX

    DUHWLUHGVOHHS\DIWHUDWULSRQHFVWDF\ +LVWLGLQH

    8VHGWRPDNHKLVWDPLQHFRQYHUVLRQUHTXLUHV%WKHHYLOYLWDPLQHYLOYLWDPLQXVDJHKHUHLVORJLFDOJLYHQDOORIWKHWHUULEOH6[WKDWKLVWDPLQHFDQJLYH\RX

    $UJLQLQH3LFWXUHDVFDU\PRQVWHUJRLQJ$UJ6FDU\PRQVWHU8UD&UHDWXUHRIWKH1LWQLJKW$UJLQLQHLVXVHGWRPDNH&UHDWLQH8UHD1LWULF2[LGH

    *OXWDPDWH8VHGWRPDNH*$%$ZKLFKVORZV\RXGRZQ*OXHPDNHV\RXDOOVWLFN\DQGVORZLWDOVRPDNHV*$%$ZKLFKVORZV\RXGRZQ

    7KLVUHTXLUHVWKHHYLOYLWDPLQ%PDUNRIWKHEHDVWEHFDXVHZHKDYHERDUGVWRVWXG\IRUVRLWLV7(55,%/(LIVRPHWKLQJPDNHVXVVORZ

    &\VWLQXULD &\VWLQXULD'HIHFWRIUHQDOWXEXODU$$WUDQVSRUWHUIRU&\VWHLQH

    2UQLWKLQH/\VLQHDQG$UJLQLQH&2/$ /LSLGWUDQVSRUW

    $$FWLYDWHV/&$7ZKLFKFDWDO\]HVHVWHULILFDWLRQRIFKROHVWHURO3XWWLQJ$VWHDNVDXFHRQD&$7

    %%LQGVWR/'/UHFHSWRUPHGLDWHV9/'/VHFUHWLRQLWLVWKHRQO\DSROLSRSURWHLQOHIWRQ/'/

    %JHWVWKHEDG/'/RXWRIWKHEORRGDQGLQWROLYHUWKXV\RXKDYHLWEHFDXVH\RXZDQWWR%VRPHGD\LHOLYHWRWKHDJHRIQRWGLHIURPDWKHURVFOHURVLV

    (PHGLDWHV([WUDUHPQDQWXSWDNH %IRUHLJKW%LVRQO\VHHQRQFK\ORPLFURQFK\ORPLFURQFRPHV

    IURPGLHWU\OLSLGLHWKHVWXIIWKDW\RXDWH%IRU%DOORIWKHRWKHUOLSLGSDWKZD\VVWDUWHGORJLFDOO\LWPHGLDWHVFK\ORPLFURQVHFUHWLRQ

  • DSR&,,DFWLYDWHV/3/OHDGLQJWRWKHFOHDYDJHRI)$VDQGDFFXPXODWLRQRI)$VLQDGLSRVHWLVVXH
  • ZLWKWK\URLG 7HUDWRJHQV

    0DWHUQDOGLDEHWHV0RWKHUVDUHILOOHGZLWKVXJDUDQGPRWKHUO\DQGYHU\VZHHW0HUPDLGVDUHVZHHWDVZHOO&DQFDXVHVLUHQRPHOLDPHUPDLGV\QGURPH

    0RUHJHQHUDOO\FDXVHVFDXGDOUHJUHVVLRQV\QGURPHDQDODWUHVLDVLUHQRPHOLD

    3ODFHQWDOGHYHORSPHQW &\WRWURSKREODVW0DNHVFHOOVIRUGHYHORSLQJVWUXFWXUH&\WRPDNHV

    &HOOV LQWHUQDOOD\HUOLNHF\WRSODVPLVLQVLGHRIFHOO

    8UDFKXV&RQQHFWVEODGGHUWR\RONVDF8UXULQHDQGDFKXVDFKXVQHH]HVQRWLVOLNH\RON

    )HWDOHU\WKURSRHLVLV

  • EHLQJVLPLODUWRDV\ULQJHQHHGOHWKXVWKLQNGUXJDGGLFWVKRRWLQJKHURLQZLWKDV\ULQJH

    /RVVRIVHQVDWLRQLQXSSHUH[WUHPLWLHV7KLVLVZKHUHKHURLQMXQN\LQMHFWVKLPVHOI

    /RVVRISDLQWHPSEXWQRWWDFWLOH:KHQ\RXJHWDOOKLJKRQKHURLQ\RXQRORQJHUIHHOSDLQWHPSEXW\RXFDQVWLOOIHHOVHQVDWLRQQRWWRWDOO\QXPEWKH\MXVWJHWKLJKWRQXPEWKHSDLQ

    &DSHOLNHGLVWULEXWLRQRIVHQVRU\ORVV%DGJX\VZHDUFDSHV'UDFXODHWFWKHKHURLQXVHULVDQHYLOFDSHGPDQLDF

    %UDFKLDODUFKGHULYDWLYHV 0$;LOODU\DUWHU\VWDUFKLV0$;LPDOVWSODFHLVEHVWSODFH 6WDSHGLDODUWHU\!6HFRQG 6WDSHGLDO FRPPRQ&DURWLGDUWHU\!&LVUGOHWWHURIDOSKDEHW 2QOHIWDRUWLFDUFKRQULJKWSUR[LPDOSDUWRIULJKWVXEFODYLDQDUWHU\

    WKDUFKOLPEV V\VWHPLF 'RHVQRWKLQJ)LYHLVQRW$OLYH 3UR[LPDOSDUWRISXOPRQDU\DUWHULHVDQGRQOHIWRQO\GXFWXV

    DUWHULRVXVWKDUFK %UDQFKLDODSSDUDWXV

    &$3FRYHUVRXWVLGHIURPLQVLGH &OHIWV!(FWRGHUP $UFKHV!0HVRGHUP 3RXFKHV!(QGRGHUP

    %UDQFKLDODUFKGHULYDWLYHV &DUWRRQEHORZEDVHGRQWKHVKRZ$UFKHUXVHIXOLI\RXDUHIDPLOLDUKWWS

    HQZLNLSHGLDRUJZLNL$UFKHUB79BVHULHV

    7VDQG0V7XFNHU0D[LVQXPEHUZZZWXFNHUPD[FRP7V7HQVRUW\PSDQL7HQVRUYHOLSDODWLQLDQWHULRURI7RQJXHDQG0V0XVFOHVRI0DVWLFDWLRQ0DVVHWHUODWHUDODQG0HGLDOSWHU\JRLGV0\ORK\RLG0D[LOODU\9DQG0DQGLEXODU9QHUYHV0HFNHOVFDUWLODJH0DQGLEOH0DOOHXVLQFXVVSKHQR0DQGLEXODUOLJDPHQW

    6VIOLSDELWDQGLWORRNVOLNHDQ66WDSHGLXV6W\ORK\RLG&1

  • 6HYHQ6WDSHV6W\ORK\RLGOLJDPHQW 3KDU\QJHDOVWXII6W\ORSKDU\QJHXVZKLFKLVLQQHUYDWHGE\

    JORVVRSKDU\QJHDOQHUYH&1,;VW\ORSKDU\QJHRXV )LYHGRHVQRWKLQJILYHLVQRWDOLYH 6WUXFWXUHVDURXQGQHFNYRLFHER[

    &DUWLODJHVWK\URLGFULFRLGDU\WHQRLGVFRUQLFXODWHFXQHLIRUP &UDQLDOQHUYH;WKDUFK6XSHULRUODU\QJHDOEUDQFKIRU

    VZDOORZLQJWKDUFKUHFXUUHQWODU\QJHDOEUDQFKIRUVSHDNLQJ IRUZKRUHVZDOORZ IRUGLFNVPHQDUHWKHRQHVWKDWJHWWDONLQJ-.

    0XVFOHV3KDU\QJHDOFRQVWULFWRUVFULFRWK\URLGOHYDWRUYHOLSDODWLQLWKDUFKLVDOOLQWULQVLFPPRIODU\Q[(;&(37&5,&27+

  • .LGQH\HPEU\RORJ\',7FODLPVWKLVLVH[WUHPHO\ORZ\LHOG 3URQHSKURV'HJHQHUDWHVDWZHHNSURWKLQJVWHQGWRJRDZD\ 0HVRQHSKURV,QWHULPNLGQH\IRUVWWULPHVWHUODWHUFRQWULEXWHVWRPDOH

    JHQLWDOV\VWHPWKLVLVWKH:ROIILDQGXFW 0HWDQHSKURV6RXQGVOLNHPHVRQHSKULFZKLFKZHFDQHDVLO\DVVRFLDWH

    ZLWKWKHJHQLWDOVIURPUHSUREXWWKLVLVWKHSHUPDQHQWNLGQH\ 8UHWHULFEXG8UHWHUSHOYLVHVFDO\FHVFROOHFWLQJGXFWV%,*

    VWXIIXUHWHULF \RXUHDWHU P\HDWHUKDVWRKDYHDELJDSSHWLWHEHFDXVHP\ZLHQHULVVRELJ

    0HWDQHSKULFPHVHQFK\PH*ORPHUXOXVDQGUHQDOWXEXOHVWRGLVWDOFRQYROXWHGWXEXOH60$//VWXIIWKLVLVLQGXFHGE\XUHWHULFEXGWKHELJVWXIIERVVHVWKHVPDOOVWXIIDURXQG

    3RWWHUVV\QGURPH%DELHVZKRFDQW3HHLQXWHURGHYHORS3RWWHUV %DVHGRQELODWHUDOUHQDODJHQHVLVGXHWRPDOIRUPDWLRQRIXUHWHULFEXG

    ORJLFDOO\LWLVWKHELJRQHVHH.LGQH\(PEU\RORJ\PQHPRQLFDERYHWKDWZRXOGFDXVHVHYHUHLVVXHVZLWKIHWXVQRWEHLQJDEOHWRSHH

    *HQLWDOHPEU\RORJ\ 0HVRQHSKULFGXFW$VVRFLDWHZLWKPHQEHFDXVHRIODFNRISUHIL[IHPDOH

    VWXIIKDVSUHIL[)(PDOH:2PDQ3$5$PHVRQHSKULFDVVRFLDWH:ROIILDQZLWKPDOHEHFDXVHZROYHVDUHPDVFXOLQHDQGEDGDVV

    /HDGVWR6(('VWUXFWXUHVPHQORYHVSUHDGLQJWKHLU6(('HYHU\ZKHUH6HPLQDOYHVLFOHV(SLGLG\PLV(MDFXODWRU\GXFW'XFWXVGHIHUHQV

    3DUDPHVRQHSKULFGXFW)HPDOHGXHWRSUHIL[WKLQJGHVFULEHGDERYH *DUWQHUVF\VW :ROIILDQGXFWUHPQDQWOHIWLQIHPDOH

    IHPDOHVRIWHQZDQWDSDUWRIWKHJDUGHQHUPDOHLQWKHP 9HVWLEXODUEXOEV,QWHUQDOSDUWRIWKHFOLWRULV&OLWRULVLVZKHUHJLUOJHWV

    WXUQHGRQOLNHDOLJKW%8/% &RQJHQLWDOSHQLOHDEQRUPDOLWLHV

    +\SRVSDGLD8UHWKUDORQXQGHUVLGHRISHQLV +\SRLVEHORZ

    (SLVSDGLD ([VWURSK\RIWKHEODGGHULVDVVRFLDWHGZLWK(SLVSDGLD :KHQ\RXKDYH(SLVSDGLDV\RXKLW\RXU(\HZKHQ\RXS(( %DVHGRQIDXOW\SRVLWLRQLQJRIJHQLWDOWXEHUFOH(3,SHQXVHGWR

    WUHDWDOOHUJ\LVOLNHDWXEH

  • 'HVFHQWRIWHVWHVDQGRYDULHV *XEHUQDFXOXPWKLQNRI3HW25*XEHUFRRZQHURIWKH:DUULRUV

    2YDULDQOLJDPHQW5RXQGOLJDPHQWRIXWHUXV DQGLWDQFKRUVWKHEDOOVOLNHWKHRZQHURIDEEDOOWHDPLVWKH

    DQFKRU 3URFHVVXVYDJLQDOLV%HFRPHVWXQLFDYDJLQDOLVLQPHQREOLWHUDWHGLQ

    ZRPHQ 0LFURELRORJ\

    127(7RQVRIH[FHOOHQWPQHPRQLFVLQ&OLQLFDO0LFURELRORJ\0DGH5LGLFXORXVO\6LPSOH&0056VRPHUHIHUHQFHGKHUHEHWWHULI\RXKDYHWKLVERRNDQGWKHDFFRPSDQ\LQJPQHPRQLFLPDJHV

    %DFWHULD %XJVWKDWGRQRWJUDPVWDLQZHOO7KHVH5DVFDOV0D\0LFURVFRSLFDOO\

    /DFN&RORU 7UHSRQHPDWRRWKLQWREHYLVXDOL]HG5LFNHWWVLDLQWUDFHOOXODU

    SDUDVLWH0\FREDFWHULDKLJKOLSLGFRQWHQWFHOOZDOOUHTXLUHVDFLGIDVWVWDLQ0\FRSODVPDQRFHOOZDOO/HJLRQHOODSQHXPRSKLODSULPDULO\LQWUDFHOOXODU&KODP\GLDLQWUDFHOOXODUSDUDVLWHODFNVPXUDPLFDFLGLQFHOOZDOO

    *LHPVDVWDLQLQJa*LHVKD %LWFKHV7U\QD3OD\&KLQHVH %RUUHOLD 7U\SDQRVRPHV&KDJDV 3ODVPRGLXP0DODULD &KODP\GLD

    8VH/RIIOHUVPHGLDIRUGLSWKHULDH'LS\RXUORIIRIEUHDGLQROLYHRLO :KLFKEXJVQHHGF\VWHLQHIRUJURZWK"7KHHOODVRUWKHJLUOV*LUOVUHDOO\

    QHHGF\VHVNLVVHV )UDQFLVHOOD %UXFHOOD 3DVWHXUHOOD /HJLRQHOOD

    (&ROLWR[LQV(7(&/DELOHOLNHWKH$LU6WDEOHOLNHWKH*URXQG KHDWODELOHWR[LQVWLPXODWHV$& KHDWVWDEOHWR[LQVWLPXODWHV*&ERWKFDXVLQJZDWHU\GLDUUKHD

    %DFWHULDWKDWSURGXFHH[RWR[LQVWKDWLQFUHDVHOHYHOVRIF$03 &&KROHUD9LEULRFKROHUD $$QWKUD[%DFLOOXVDQWKUDFLV 00RQWHF]XPDVUHYHQJHSRSXODUQDPHIRUHQWHURWR[LJHQLF(

    FROL 33HUWXVVLV%RUGHWHOODSHUWXVVLV

    6SLURFKHWH/HSWRVSLUD,QWHUURJDQVVKDSHGOLNHDTXHVWLRQPDUN +DSSHQVWRVXUIHUVDQGSHRSOHLQWKHWURSLFVZKRJHWLQZDWHU

    FRQWDPLQDWHGZLWKDQLPDOXULQH,QWHUURJDQVWKLQN,QWHUURJDWH

  • DVNLQJTXHVWLRQVOLNHWKHTXHVWLRQPDUNVKDSH7KLQNDERXWDVXUIHUDVNLQJDJURXSRISRUSRLVHV'XGHVZKRSLVVHGLQWKHZDWHU"

    6SLURFKHWHV %/7EDFRQWHQGVWRVSLUDOZKHQ\RXFRRNLW %RUUHOLD/HSWRVSLUD7UHSRQHPD

    7KH)VRI6G\VHQWHULDHWUDQVPLVVLRQ )LQJHUV)OLHV)RRG)HFHV

    2EOLJDWHDHUREHV1DJJLQJ3HVWV0XVW%UHDWKH1RFDUGLD3VHXGRPRQDV0\FREDFWHULXPWXEHUFXORVLV%DFLOOLV%DQWKUDFLV%FHUHXV

    3VHXGRPRQDV$(5XJLQRVDLVDQ$(5REH $QDHUREHV&DQW%UHDWKH$LU&ORVWULGLXP%DFWHULRGHV$FWLQRP\FHV

    $PLQ2JO\FRVLGHVDUHLQHIIHFWLYHDJDLQVWDQDHUREHVEHFDXVHWKHVHDQWLELRWLFVUHTXLUH2WRHQWHUWKHEDFWHULDOFHOO

    126W5(61RYRELRFLQ6DSURSK\WLFXV5HVLVWDQW(SLGHUPLV6HQVLWLYH 295362SWLFKLQ9LULGDQV5HVLVWDQW3QHXPR6HQVLWLYH %%5$6%DFLWUDFLQ%VWUHS5HVLVWDQW$VWUHS6HQVLWLYH *URXS%VWUHS7KLQN%IRU%DE\

    %DE\FDQDFTXLUHWKHVHEXJVGXULQJGHOLYHU\FDXVHVQHRQDWDOPHQLQJLWLVSQHXPRQLDVHSVLV

    3QHXPRFRFFXVLVWR3DUHQWVZKDWJURXS%VWUHSLVWR%DELHV 0DMRUFDXVHRIEDFWHULDPHQLQJLWLVSQHXPRQLDVHSVLV

    LQDGXOWV RUVLQFHLWVLQIHPDOHVWKH\FDXVH306SQHXPRQLDPHQLQJLWLV

    VHSVLV 0DLQFDXVHVRIPHQLQJLWLVLQQHRQDWH

    %(/OVEDE\ERUQULQJEHOOVKXUWEDE\VKHDGOLNH0(1,1*,7,6J%V(FROL/LVWHULD

    1RUKHXPIRU63(&&XODWLRQWKH6[RIUKHXPDWLFIHYHU6XEFXWDQHRXVSODTXHV3RO\DUWKULWLV(U\WKHPDPDUJLQDWXP&KRUHD&DUGLWLV

    7UHDWPHQWRIQRFDUGLDDQGDFWLQRP\FHV 61$36XOIDIRU1RFDUGLD$FWLQRP\FHVXVH3HQLFLOOLQ

    ,WWDNHVZHHNVWRFXOWXUH7%RQ/RZHQVWHLQ-HQVHQDJDU6ORZHQVWHLQ-HQVHQDJDU

    &DPS\OREDFWHULDMHMXQLJURZVDWGHJUHHVFHOFLXVKRW&DPSILUHVDUHKRW

    DZ*XLOODQ%DUUHVRXQGVOLNHVRPHIDQF\VXPPHUFDPS\RXGVHQG\RXUNLGVWR&DPS*XLOODQ%DUUH

    6ORZIHUPHQWHUVRIODFWRVH&LWUREDFWHU6HUUDWLD7KH\DUHVROD]\DQGVORZWKH\MXVWFLWWKHUHDQGVHUULQWRVSDFH

    /\PHGLVHDVH %$.(DNH\/\PHSLH%HOOVSDOV\ELODWHUDO$UWKULWLV.DUGLDF

    EORFN(U\WKHPDPLJUDQVEXOOVH\HOHVLRQ (FROL

  • (3(&(QWHUR3DWKRJHQLF(FROL'LDUUKHDXVXDOO\LQFKLOGUHQVR3HGLDWULF

    1RWR[LQSURGXFHG$KHUHVWRDSLFDOVXUIDFHIODWWHQVYLOOLSUHYHQWVDEVRUSWLRQ

    .OHEVLHOOD$V$VSLUDWLRQSQHXPRQLD$EVFHVVLQOXQJV$OFRKROLFVGL$EHWLFV

    FDQUHPHPEHU$VE\WKLQNLQJRI5LKDQQDVLQJLQJXQGHUP\.OHEVLHOODHOODHOOD$$$$

    =RRQRWLFEDFWHULD%LJ%DG%HG%XJV)URP

  • 3DOPDQGVROHUDVK
  • 6WUHSWRFRFFXV,QWHU0H'LXVDQG$QJLQR6XV,00H'LDWHO\$6VHVVIRU

    $%6&(66 5LFNHWWVLDDNDUL&DXVHV5LFNHWWVLDO3R[5LFNHWWVLD$7$5,OLNH

    WKHYLGHRJDPHV\VWHPQHUGZLWKGLVJXVWLQJSR[ULGGHQIDFHVSOD\YLGHRJDPHV

    %DFWHULDLGHQWLILFDWLRQZLWKDQWLELRWLFVQRYRELRFLQRSWRFKLQEDFLWUDFLQ :KHQKDYHLWQDUURZHGGRZQWR

    6WDSK1RYRELRFLQWHVWNLOOV(3,'(50,GLVEXWQRW6$3URSK\WLFXV

    6FUXE1DVW\(3,'(50,66DS $/SKDKHPRO\WLF2SWRFKLQWHVWNLOOV31(802EXWQRW

    0XWDQV $/2UJDVPV31(8202URXVWLPHVHDFKGD\KH

    EHDWVRIIVRPXFKKHLVOLNHDPXWDQWRUVRPHWKLQJ %HWDKHPRO\WLF%DFLWUDFLQ.LOOV3

  • VHHQLQWKHEORRGLWLVOLNHO\WKDWWKHSHUVRQKDVEORZHOFDQFHUOLNHRISHRSOHLQVRPHVWXGLHV

    &RU\QHEDFWHULXP&RUQ\PQHPRQLFIURP)$DEEUHYLDWHG&%$VRWKLQNRIWKH$%&V

    $'3ULERV\ODWLRQ %HWDSURSKDJH &RU\QHEDFWHULXP 'LSKWKHULD () )XFN:+$7$5(

  • &KODP\GLD&OHDUGLVFKDUJH &DQGLGD7KLFNFRWWDJHFKHHVHGLVFKDUJHZKLFKLVORJLFDOJLYHQ

    WKHDSSHDUDQFHRIFDQGLGDLQWKHWKURDWRIDQ+,9SDWLHQWWKLVLVWKHFODVVLF\HDVWLQIHFWLRQ

    %DFWHULRGHVIUDJLOLV,QIHFWLRQRFFXUVZKHQRUJDQLVPHQWHUVLQWRWKHSHULWRQHDOFDYLW\LWGRHVQRWJHWPRUH)5$*,/(WKDQWKHSHULWRQHDOFDYLW\

    &/26WULGLXPDUHDQDHUREHVWKH\PXOWLSO\LQDQDLUWLJKW&/26HW 7]DQFNWHVW8VHGWRDVVHVVOHVLRQIRUKHUSHV7]DQNFVIRUWKH

    KHUSHV\RXIXFNLQJELWFK (QFDSVXODWHGEDFWHULD3RVLWLYHTXHOOXQJUHDFWLRQZKHUHFDSVXOH

    VZHOOVZKHQVSHFLILFDQWLFDSVXODUDQWLVHUDDUHDGGHG4XHOOXQJ FDSVXODUVZHOOXQJ

    6RPH.LOOHUV+DYH1LFH6KLQ\%RGLHV6WUHSWRFRFFXVSQHXPR.OHEVLHOODSQHXPR+DHPRSKLOXVLQIOXHQ]DHW\SH%1HLVVHULDPHQLQJLWLGLV6DOPRQHOODJURXS%VWUHS

    66+L1RUJDQLVPVFDQWKLQNRIVKLQJDXUGEHLQJDFDSVXOHIRU\RXUVKLQ&DQXVH.%66+L1WRDGGLQ.OHEVLHOODDQGJURXS%VWUHSXVLQJP\LQLWLDOV.6LQFOXGLQJP\PLGGOHQDPH%DOOHU)XUWKHUPRUHDFDSVXOHLVOLNHDEDOO1RWHWKDWWKHVHEDFWHULDDOOKDYHDQ,J$SURWHDVHWKDWWKH\XVHWRLQYDGHUHVSLUDWRU\PXFRVD

    .OHEVLHOOD JURXS%VWUHS 6DOPRQHOOD 6SQHXPRQLDH +,QIOXHQ]DHW\SH% 1PHQLQJLWLGLV127JRQQRUKHDW\SH

    3LJPHQWSURGXFLQJEDFWHULD $FWLQRP\FHVLVUDHOLLKDV\HOORZVXOIXUJUDQXOHV,VUDHOKDV

    \HOORZVDQG 6HUUDWLDPDUFHVFHQV+DVDUHGSLJPHQWOLNHDPDUDVFKLQR

    FKHUU\ 8UHDVHSRVLWLYHEXJV.OXW]\3URNDU\RWHV+DFN8UHD.OHEVLHOOD

    3URWHXV+S\ORUL8UHDSODVPDXUHDO\WLFXP $UJ\OO5REHUWVRQ3XSLO3XSLOFRQVWULFWVGXULQJDFFRPRGDWLRQEXWGRHV

    QRWUHDFWWROLJKW&DOOHGDSURVWLWXWHVSXSLOEHFDXVHOLNHDSURVWLWXWHLWDFFRPPRGDWHVEXWGRHVQRWUHDFWFDQEHFDXVHGE\V\SKLOLVZKLFKSURVWLWXWHVFRPPRQO\JHW

    %ORRG\'LDUUKHDYVZDWHU\GLDUUKHD %ORRG\66(((&&

  • $QWLEDFWHULDO$QWLELRWLFV %DFWHULRVWDWLFYVEDFWHULFLGDO

    %DFWHULRVWDWLF :HUH(&67D7L&DERXWEDFWHULRUVWDWLFV

    (U\WKURP\FLQ&OLQGDP\FLQ6XOIDPHWKR[D]ROH7ULPHWKRSULP7HWUDF\FOLQHV&KORUDPSKHQLFRO

    %DFWHULFLGDO 9HU\)LQHO\3URILFLHQW$W&HOO0XUGHURU9LROHQW

    )XFNLQJDQG3RXQGLQJ0XUGHUV$OO&HOOV9DQFRP\FLQ)OXRURTXQLRORQHV3HQLFLOOLQ0HWURQLGD]ROH$PLQRJO\FRVLGHV&HSKDORVSRULQV

    $QWLELRWLFVWRDYRLGLQSUHJQDQF\6$)(0RPV7DNH5HDOO\*RRG&DUH

    66XOIRQDPLGHVNHUQLFWHUXV $$PLQRJO\FRVLGHVRWRWR[LFLW\ ))OXRURTXLQRORQHVFDUWLODJHGDPDJH ((U\WKURP\FLQDFXWHFKROHVWDWLFKHSDWLWLVLQPRP',7

    VD\VWKLVLVZURQJKRZHYHUEXWLVLQ)$ 00HWURQLGD]ROH0XWDJHQHVLV 77HWUDF\FOLQHVGLVFRORUHGWHHWKLQKLELWLRQRIERQH

    JURZWK 55LEDYLULQWHUDWRJHQLF **ULVHRIXOYLQWHUDWRJHQLF &&KORUDPSKHQLFROJUD\EDE\

    3URWHLQV\QWKHVLVLQKLELWRUV%X\$7&&(//VHOODW 6LQKLELWRUV$7$PLQRJO\FRVLGHVEDFWHULFLGDO

    7HWUDF\FOLQHEDFWHULRVWDWLF 6LQKLELWRUV&&(//&KORUDPSKHQLFRO&OLQGDP\FLQ

    (U\WKURP\FLQ/LQFRP\FLQ/LQH]ROLG $OOEDFWHULRVWDWLFH[FHSWIRU/LQH]ROLGZKLFKLV

    YDULDEOH 6KRXOGXVHSHQLFLOOLQDVHUHVLVWDQWSHQLFLOOLQVIRU6DXUHXV

    DVVXPLQJQRW056$8VHQDIQDIFLOOLQIRUVWDSK 7KHDQWL3$GUXJV

    7&37LFDUFLOOLQ&DUEHQLFLOOLQ3LSHUDFLOOLQ7DNHV&DUHRI3VHXGRPRQDV

    7HWUDF\FOLQHXVHV9$&8807+H%HG5RRP 9LEULR $FQH &KODP\GLD 8UHDSODVPD 8UHDO\WLFXP 0\FRSODVPDSQHXPR 7XODUHPLD

  • +S\ORUL %EXUJGRUIHUL 5LFNHWWVLD

    %HWDODFWDPDVHLQKLELWRUV&$67&ODYXODQLF$FLG6XOEDFWDP7D]REDFWDP

    3LFWXUHWKHEHWDODFWDPDVHEHLQJZUDSSHGXSLQD&$67VRLWFDQWIXQFWLRQ

    &HSKDORVSRULQV VWJHQ7UHDWWKH3(F.RUJDQLVPV3URWHXVPLUDELOLV

    (FROL.OHEVLHOODSQHXPRQLDH QGJHQ7UHDWWKH+(13(F.6RUJDQLVPV

    +DHPRSKLOXVLQIOXHQ]DH(QWHUREDFWHUDHURJHQHV1HLVVHULDVSS3URWHXV(FROL.OHEVLHOODSQHXPR6HUUDWLDPDUFHVFHQV

    5HPHPEHULQJWKHJHQHUDWLRQRIWKHFHSKDORVSRULQ VWJHQ2QO\RQHVZLWKD3+FHSKDORWKLQFHSKDSLULQ

    FHSKUDGLQHFHID]ROLQLVDQH[FHSWLRQEXWGRQWOHWWKDWID]H\RX

    UG0RVWKDYHD7RUWULLQWKHLUQDPHVFHIWULD]RQHFHIWD]LGLPHFHIRWD[LPHFHIWL]R[LPHFHIWLEXWHQ

    WKJHQHUDWLRQFHIHSLPHIHSVWDQGVIRUIRUHYHU\SXVV\EHFDXVHWKJHQHUDWLRQPDNHVLW62HDV\WRNLOOWKLQJVRQO\DSXVV\ZRXOGUHVRUWWRLW

    ,9EHWDODFWDPDVHUHVLVWDQWSHQLFLOOLQV&00563,PHWDQDVW\R[0HWKLFLOOLQQDIFLOOLQR[DFLOOLQ

    ,PLSHQHPDQGPHURSHQHP *LYHLPLSHQHPZLWKFLODVWDWLQFLODVWWDLQLVDQLQKLELWRURI

    UHQDOGLK\GURSHSWLGDVH,GHFUHDVHVLQDFWLYDWLRQRIGUXJLQUHQDOWXEXOHV:LWKLPLSHQHPWKHNLOOLV/$67,1ZLWKFL/$67$7,1

    ,PLSHQHPLVNQRZQIRUKDUVKVLGHHIIHFWV,0,QWKH3(1OLNHSULVRQJHWUDSHG*,GLVWUHVVZKLFKJLYHV\RXDUDVKDQGDOORIWKLVWUDXPDUHVXOWVLQORQJODVWLQJSV\FKRORJLFDOGDPDJH&16WR[LFLW\

    0HURSHQHPLVOHVVKDUVKQRVHL]XUHV1RZVRPHRQHHOVHLVLQWKHSHQVRLWVFRRO

    0DFUROLGH$PLQRJO\FRVLGHQDPLQJ 0\6LQLV0$&NLQJRQWKHKRHVDQGEHLQJDPHDQ

    JX\P\FLQQDPHV0DFUROLGHV$PLQRJO\FRVLGHV &/(DQ7$*PQHPRQLFLQ0LFURELRORJ\0DGH5LGLFXORXVO\

    6LPSOH3 &/(DQIRUV&KORUDPSKHQLFRODQG

    &OLQGDP\FLQ/LQH]ROLG(U\WKURP\FLQ 7$JIRUV7HWUDF\FOLQH$PLQR*O\FRVLGHV

  • 0DFUROLGHV 8VLQJDPDFNOLNHDSLPS

    $PDFNPXVWEHDW\SLFDO7UHDWVDW\SLFDOSQHXPRQLD

    $PDFNFDQPDNH\RXUKHDUWVNLSDEHDW47SURORQJDWLRQ

    $OWHUQDWLYH86$WKLQNVZHUHPDFUR 87,V 67'V $W\SLFDOSQHXPR DOVRREHVLW\LVUDPSDQWLQ86PDFUROLGHVPRVW

    FRPPRQ$(LV*,GLVFRPIRUW $PLQRJO\FRVLGHV0HDQ*1$76FDQ127NLOODQDHUREHV

    0HDQ$PLQRJO\FRVLGHV &DQQRWNLOODQDHUREHV2LVQHHGHGIRUDPLQRJO\FRVLGH

    XSWDNHVRLQHIIHFWLYHDJDLQVWDQDHUREHV *1$767KHGLIIHUHQWDPLQRJO\FRVLGHV*HQWDP\FLQ

    1HRP\FLQ$PLNDFLQ7REUDP\FLQ6WUHSWRP\FLQ 127FRYHUVVLGHV1HSKURWR[LFLW\2WRWR[LFLW\7HUDWRJHQ

    &0056YHUVLRQ 6LGHHIIHFWV$PHDQJX\GHOLYHUVD

    SXQFKWRWKHHDUHLJKWFUDQLDOQHUYHWR[LFLW\YHUWLJRKHDULQJORVVDQGWKHNLGQH\UHQDOWR[LFLW\+LVRSSRQHQWLVQRZWRWDOO\SDVVHGRXWXQDEOHWRPRYH

  • RUEUHDWKQHXURPXVFXODUEORFNDGHDUDUHFXUDUHOLNHHIIHFWWKDWLVVRPHWLPHVVHHQ

    &KORUDPSKHQLFROFDQFDXVHDSODVWLFDQHPLDWKLQNRIFKORULQHEHLQJSRXUHGLQWRERQH

    ,WFDQDOVRFDXVHJUH\EDE\V\QGURPHWKLQNRIDEDE\IDOOLQJLQWRDFKORULQHSRRODQGFRPLQJRXWDOOJUH\

    &OLQGDP\FLQDQG0HWURQLGD]ROHDUHXVHGWRWUHDWDQDHUREHV &OLQGDP\FLQ7UHDWVDQDHUREHV$ERYHGLDSJUDJP$

    DQG&ERWKFRPHILUVWDOSKHEHWLFDOO\ 0HWURQLGD]ROH7UHDWVDQDHUREHV%HORZGLDSKUDJP%

    DQG0FRPHVHFRQGDOSKDEHWLFDOO\ $OWHUQDWLYHO\F/,1'$LVDQLFHJLUOEXWDJLUOIURP

    WKH0(752EXVZLOOJRGRZQRQ\RX%(/2:\RXUGLDSKUDJP

    &OLQGDP\FLQDQG$PSLFLOOLQERWKFDQOHDGWRSVXHGRPHPEUDQRXVFROLWLVIURP&GLIEFWKH\FOHDQHGXSDPS\RXUFRORQUHPRYLQJHQGRJHQRXVIORUD

    7ULPHWKRSULP703&DXVHVPHJDOREODVWLFDQHPLDOHXNRSHQLDJUDQXORF\WRSHQLD7UHDWV0DUURZ3RRUO\

    7%'UXJV :KHQVRPHRQHLVLQIHFWHGZLWK7%WKH\DUH5,3(IRU

    WUHDWPHQW7[ZLWK5LIDPSLQ,VRQLD]LG3\UD]LQDPLGH(WKDPEXWRO

    ,6DZD5HG3\UH%851,1*7+(/,9(5EHFDXVHWKHVHWKUHHGUXJVFDXVHOLYHUGDPDJH

    ,VRQLD]LG,1+ 6LGHV,1+,QMXUHV1HXURQVDQG

    +HSDWRF\WHV ,1+ ,1HHG+HOS 5HTXLUHVFDWDODVH

    SHUR[LGDVHWRFRQYHUWLWWRDQDFWLYHPHWDEROLWH

    5LIDPSLQRU5LIDEXWLQZKLFKLVVLPLODUEXWVOLJKWO\GLIIHUHQW

    7KH5VRI5LIDPSLQ 5HG%RG\IOXLGVVXFKDVXULQH

    IHFHVVDOLYDVZHDWDQGWHDUVDUHFRORUHGEULJKWUHGRUDQJH

    5IRU51$5LIDPSLQLQKLELWVWKH'1$GHSHQGHQW51$SRO\PHUDVHRI7%

    5HYVXSPLFURVRPDO3 5DSLGUHVLVWDQFHLIXVHGDORQH

    3\UD]LQDPLGH(IIHFWLYHLQWKHDFLGLFS+

  • RISKDJRO\VRVRPHVZKHUH7%HQJXOIHGE\PDFURSKDJHVLVIRXQG3LFWXUHSKDJRVRPHDVDOLWWOHS\UDPLGWKDWWKLVLVZRUNLQJLQVLGHRI

    2WKHUGUXJVIRU7%QRWDVVRFLDWHGZLWKOLYHUGDPDJH

    (WKDPEXWRO 5HYHUVLEOHRFXODUWR[LFLW\QHXURSDWK\

    7KLQNRIHWKDQHEXWDQHIODPHWRUFKEXUQLQJWKHH\H

    'HFUHDVHGYLVXDODFXLW\UHGJUHHQFRORUEOLQGQHVV

    $OWHUQDWLYHO\,WKLQNRIDQDPEXODQFHWKDWFDQUXQWKURXJKUHGVJUHHQV

    6WUHSWRP\FLQ )OXRURTXLQRORQHV

    $OOHQGLQIOR[DFLQVRWKLQNRIDIORFNRIVLQQHUVDWDSDUW\,UHPHPEHUIORFNE\WKLQNLQJRIDIORFNRIELUGVKDQJLQJRXWZLWK'U4XLQQPHGLFLQHZRPDQKWWSHQZLNLSHGLDRUJZLNL'UB4XLQQB0HGLFLQHB:RPDQ

    0HFKDQLVP7KHVLQQHUVJ\UDWHWKHLUKLSVDQGGDQFHDQGKDYHVH[,QKLELWV'1$J\UDVH

    $GYHUVHHIIHFWV 7KHVLQQHUVJHWGUXQNDQGKXQJRYHU*,

    LUUDWDELOLW\YRPLWLQJ )OXRURTXLQR/21(6KXUWDWWDFKPHQWVWR

    \RXU%21(67HQGRQLWLVDQGWHQGRQUXSWXUHLQDGXOWVOHJFUDPSVDQGP\DOJLDVLQNLGV

    9DQFRP\FLQ :HOOWROHUDWHGLQJHQHUDOGRHV127KDYHPDQ\SUREOHPV

    1HSKURWR[LFLW\2WRWR[LFLW\7KURPERSKOHELWLV ,UHPHPEHUUHGPDQHDVLO\$UHGPDQLVOLNHDQ,QGLDQ

    ,QGLDQSHRSOHQDWLYHDPHULFDQVKDYHD721RIPHGLFDOSUREOHPV

    77KURPERSKOHELWLV 22WRWR[LFLW\ 11HSKURWR[LFLW\

    )URP0LFURELR0DGH5LGLFXORXVO\6LPSOH33LFWXUHDYDQZLWKDSOXVRQLWEHFDXVHYDQFRP\FLQNLOOVOLNH$//JUDPSRVLWLYHLHDQDPEXODQFHYDQFRPLQJRXWRI,9WXELQJLWLVDERXWWRUXQRYHUDQHDUWKH'RI'DODQLQHDQGKLWDSHSWLGRJO\FDQFHOOZDOOWKHYDQLVEHLQJGULYHQE\DQDWLYHDPHULFDQWKHUHGPDQ

    ,9WXELQJ*LYHQ,9H[FHSWIRU7[RIFORVWULGLXP

  • GLIILFLOHSVHXGRPHPEUDQRXVFROLWLVZKHUHZHZDQWLWWRVWD\LQWKH*,WUDFWDQGJLYHRUDOO\

    0HFKDQLVP,QKLELWVSHSWLGRJO\FDQSURGXFWLRQFRPSOH[HVZLWK'DODQLQH'DODQLQHWRLQKLELWWUDQVSHSWLGDWLRQ

    6LGHV5HGPDQV\QGURPHUHOHDVHRIKLVWDPLQHFDXVHVUHGUDVKRIWKHWRUVRDQGLWFKLQJVNLQ

    0HWURQLGD]ROHWKHPHWUREXVDOVRXVHGWRWUHDWVRPHSURWR]RDGHVSLWHWKLVEHLQJWKHEDFWHULDVHFWLRQ

    6LGHV%HFDXVHWKHEXVLVVKDN\\RXZLOOJHWVWRPDFKXSVHWLI\RXGULQNZKLOHWDNLQJLWGLVXOILUDPHIIHFWHDWLQJWKHPHWDOLFEXVFDQDOVRSXWDPHWDOOLFWDVWHLQ\RXUPRXWK

    2UJDQLVPVWKDWFDQEHWUHDWHGLQFOXGHERWKEDFWHULDDQGSURWR]RD*(7*$3RQWKH0HWUR

    **LDUGLD ((QWDPRHED 77ULFKRPRQDV **DUGQHUHOODYDJLQDOLV $$QDHUREHVEDFWHULRGHVFORVWULGLXP 3+3\ORUL

    3RO\P\[LQV3RO\P\[LQ%SRO\P\[LQ(FROLVWLPHWKDWH 0HFKDQLVP%LQGWRFHOOPHPEUDQHVRIEDFWHULDDQG

    GLVUXSWWKHLURVPRWLFSURSHUWLHVFDWLRQLFEDVLFSURWHLQVWKDWDFWOLNHGHWHUJHQWV0

  • +LVWRSODVPRVLV+LVWRORJ\'U&RWWHU+LVWRSODVPRVLVDVVRFLDWHGZLWKEDWGURSSLQJV7KHUXPRULVWKDW'U&RWWHUKDVVH[ZLWKEDWV

    3DUDFRFFLGLR3DUDVDLOVZLWKWKHFDSWDLQVZKHHODOOWKHZD\WR/DWLQ$PHULFD3DUDFRFFLGLRKDVEXGGLQJ\HDVWZLWKFDSWDLQVZKHHOIRUPDWLRQVHHQLQODWLQDPHULFDWKHUHLVDVKRZZLWKDSDLURIFRFNVLQ7LMXDQD

    3QHXPRF\VWLVFDULQLL3MLURYHFL3URGXFHV3&3SQHXPRQLDVRDVVRFLDWHZLWKWKHGUXJ3&3

    3&3PDNHV\RXVHHWRWDOO\FUD]\VKLWOLNH8)2V3QHXPRF\VWLVLV8)2VKDSHG

    7LQHDYHUVLFRORU&DXVHGE\PDODVVH]LDIXUIXU'HJUDGDWLRQRIOLSLGVSURGXFHVDFLGVWKDWGDPDJHPHODQRF\WHVDQGFDXVHK\SRK\SHUSLJPHQWHGSDWFKHV/RJLFDOFRQVLGHULQJWKHYHUVLFRORUQDPLQJ

    6SKDJKHWWLDQGPHDWEDOODSSHDUDQFHRQ.2+SUHS6SDJKHWWLQRRGOHVDUHZKLWHVDXFHLVFRORUHGFDQOLQNWRYHUVLFRORU

    0DODVVH]LDIXUIXUVRXQGV,WDOLDQVSDJKHWWLPHDWEDOOV :LGHYVDFXWHDQJOHLQIXQJL

    $VSHUJLOOXV$$FXWHDQJOH 0XFRU)OLS0WRKDYHD::LGHDQJOH

    &DQWUHDWVSRURWKUL[VFKHQFNLLWKHURVHJDUGHQHUVGLVHDVHZLWKSRWDVVLXPLRGLGH3ODQWDURVHLQWKHSRW

    7KLVLVDGLPRUSKLFIXQJXVWKDWLVFLJDUVKDSHGZKHQLQLWV\HDVWIRUP5RVHJDUGHQHUVDUHDOZD\VVPRNLQJFLJDUVZKLOHWKH\ZRUN

    $QWLIXQJDODQWLELRWLFV $PSKRWHULFLQ%LVWKH$PSKLELDQ7HUURULVW&0056

    WHUURUL]HVHUJRVWHURODQGWKHNLGQH\ $PSKRWHDUDFLQWHDUVKROHVLQWKHIXQJDOPHPEUDQHE\

    IRUPLQJSRUHV 1HSKURWR[LFLW\7HUURULVWERPELQJWKHIXQJDOFHOO

    PHPEUDQHDQGWDNLQJ.,'VNLGQH\VKRVWDJH 1\DVWDWLQ1DVW\1\DVWDWLQ

    6RQDVW\LWLVWRRVWURQJWRWDNH,9ZRXOGEHKLJKO\WR[LFWKXVPXVWXVHWRSLFDOO\RUDOO\

    3XQFKHVKROHVLQHUJRVWHUROPXFKOLNHKROHVDUHSXQFKHG

  • LQWKHERG\LQDQDOVH[QDVW\ 6DPHPHFKDQLVPDVDPSKRWHULFLQ%EXWLVRQO\

    XVHGWRSLFDOO\7[RIFKRLFHIRURUDOFDQGLGLDVLVEXWQR*,V\VWHPLFDEVRUSWLRQ

    )O8F\VWRVLQHLVDQDQWLPHWDEROLWHOLNH)8 6LPLODUO\FDXVHVERQHPDUURZGHSUHVVLRQQDXVHD

    YRPLWLQJGLDUUKHDGDPDJHUDSLGO\GLYLGLQJFHOOVOLNHERQHPDUURZ*,

    $]ROHV .HWRFRQD]ROHDQGDOORIWKHD]ROHVLQKLELWVF\WRFKURPH

    3ZKLFKLVLPSRUWDQWLQWHVWRVWHURQHV\QWKHVLVWKLVFDXVHVJ\QHFRPDVWLDLPSRWHQFHHWF

    .HWRJHQLFGLHWVLQYROYHVWDUYLQJ\RXUVHOIZLWKH[WUHPHO\ORZFDUEVVXFKWKDW\RXHQWHUNHWRVLVDQGEXUQIDWLIDJX\IROORZHGWKLVGLHWKHZRXOGEHVXSHUJLUO\J\QHFRPDVWLDHWF

    &DQPHQWDOO\OLQNWKLVWRDGUHQDOVXSSUHVVLRQDQRWKHUVLGHHIIHFWRINHWRFRQD]ROH

    F$63RIXQJLQ8VHGWRWUHDWLQYDVLYH$63HUJLOORVLV ,QKLELWVV\QWKHVLVRIEHWDJOXFDQ&$63RIXQJLQOLNH

    &DVSHUWKHJKRVW6RPHRQHGUHVVLQJXSOLNHFDVSHUPDNHVWKHPVHOYHVZKLWHXVLQJDJOXHFDQJOXFDQ

    :HOOWKLVZRXOGEHRQHZD\WRPDNH\RXUVHOIZKLWH,PUHDFKLQJ

    *ULVHRIXOYLQ )URP&00563LFWXUHDJUHDV\IXOFUXPXVHGWROHYHU

    GHUPDWRSK\WHSODTXHVRIIRIWKHVNLQ ,QKLELWVIXQJDOJURZWKE\GLVUXSWLQJVSLQGOHIRUPDWLRQWKXV

    SUHYHQWLQJPL72(VLVSLFWXUHJUHDV\IXOFUXPOHYHUSXOOLQJSODTXHRIIRIDWRHWKXVORJLFDOO\VWDWLFQRWFLGDODVLWMXVWSUHYHQWVGLYLVLRQ

    7HUELQDILQH ,QKLELWVHUJRVWHUROVW\QWKHVLVE\EORFNLQJ6TXDOHQH

    (SR[LGDVH:LQGWXUELQHVZRUNEHVWLQVTXDOOVKLJKZLQG

  • 9LUXVHV 1HJDWLYH51$LVQHJDWLYHVKLWW\PXVWEHWUDQVFULEHGLQWRSRVLWLYH51$LQ

    RUGHUIRULWWREHXVHIXO 1HJDWLYH'1$LVQHJDWLYHVKLWW\DQGWKXVQRWDFWXDOO\UHDGLWLVWKH

    SRVLWLYH'1$WKDWLVXVHGWRGRVRPHWKLQJ '1$YLUXVHV7KH++$333\YLUXVHVKDSS\EHFDXVH'1$LVLQVHPHQ

    DQGHMDFXODWLQJLVVXSHUIXQ ++HUSHV ++HSDGQD $$GHQR 33DSRYD 33DUYREUHDNWKHUXOHVRI'1$YLUXVHVE\KDYLQJVLQJOH

    VWUDQGHG'1$VRVLPSOHLWLVOLNHSOD\LQJ21(3$5LQJROI 33R[EUHDNWKHUXOHVRI'1$YLUXVHVE\QRWKDYLQJ

    LFRVDKHGUDOV\PPHWU\VXUURXQGHGE\FRPSOH[VWUXFWXUDOSURWHLQVWKDWORRNOLNHDER[32;,1$%2;

    7KUHHRIWKH'1$YLUXVHVDUHQDNHGQRHQYHORSHPXVWEHQDNHGIRU3$3VPHDUH[DP3$3RYD$GHQR3$UYR

    +HSDWLWLV )LYHW\SHV$%&'($DQG(DUHIHFDORUDORQWKHHQGVOLNHWKH

    PRXWKDQXVRIWKH*,WUDFW +$9$IRU$V\PSWRPDWLFXVXDOO\EXWFDQFDXVHMDXQGLFHLQ

    VRPHFDVHV$FXWH$ORQHQRFDUULHUV +%9%IRU%ORRGERUQHWKHFRXVLQRI+&9DVERWKSUHGLVSRVH

    WRFKURQLFDFWLYHKHSDWLWLVFLUUKRVLVKHSDWRFHOOXODUFDUFLQRPD )RUWKHPDUNHUV,DOZD\VJHW+%VDQG+%FPL[HGXSVR

    RQWKHJUDSKUHPHPEHU+%VDQGLWVVXEVHTXHQWDEKDVDVSDFHLQEHWZHHQPDUNLQJWKHHTXLYDOHQFH]RQH

    +%HIRUHQIHFWLYLW\ +&9&IRU&KURQLF&LUUKRVLV&DUFLQRPD&DUULHUV +'9'IRU'HIHFWLYH'HSHQGHQWRQ+%9

  • +(9(IRU(QWHULF([SHFWDQWPRWKHUVQRUPDOO\WKLVYLUXVLVPLOGOLNH$EXWKDVKLJKPRUWDOLW\LQSUHJQDQWZRPHQ

    7KHQRQHQYHORSHG51$YLUXVHVDUH&35DV\RXFDQQRWSHUIRUP&35RQVRPHRQHLQDQHQYHORSH&DOLFL3LFRUQD5HRYLULGDH

    2UWKRP\[RDQGSDUDRUWKRP\[R 25WKRP\[RFDXVHV25GLQDU\IOX3$5$RUWKRFDXVHVDQLQIOXHQ]D

    OLNHLOOQHVVLQDGGLWLRQWRD3$5$GHRIGLVWLQFWO\GLIIHUHQWGLVHDVHV $QWLJHQLFGULIW6PDOOFKDQJHIURPPXWDWLRQVOLNHDOLWWOHGULIWRI

    DVDLOERDWLQZDWHU $QWLJHQLFVKLIW%LJFKDQJHGXHWRJHWWLQJDEUDQGQHZ1$+$

    RUERWKDVLQIOXHQ]DW\SHVLQIHFWWKHVDPHFHOODQGVZDSJHQHWLFPDWHULDOUHDOO\6+,)7,1*JHDUVRURK6+,)7WKLVLVDSUREOHP

    9LUDOYDFFLQHV /LYHDWWHQXDWHG6PDOOSR[

  • )RUWKHVHYLUXVHVWKLQN2SDS2YLULGDH 2IRUFLUFXODUGRXEOHVWUDQGHG'1$ 2IRUURXQGZDUWV 2IRUFHUYL[

    $GHQRYLULGDH3LFWXUH$'(1IXOORIFRXJKLQJVQHH]LQJFKLOGUHQWKLVYLUXVFDXVHVPRUHWKDQRIFKLOGKRRGUHVSLUDWRU\LQIHFWLRQV

    3DUYRYLULGDH5HDOO\VLPSOHRQO\RQHVWUDQGRIVLQJOHVWUDQGHG'1$6LPSOHDVDSDUJROIFRXUVH

    *ROILVIRUDGXOWVQRWFKLOGUHQVRVODSFKLOGRQIDFHLIKHSOD\VJROIFDXVHVHU\WKHPDLQIHFWLRXVXPILIWKGLVHDVHZLWKIHYHUDQGDVODSSHGIDFHUDVKRQWKHFKHHNV

    3LFRUQDYLULGDH3LF251DWKHSRUQYLUXVWKXV\RXKDYHWKHHQWHURYLUXVSRRSDQDODQGWKHUKLQRYLUXVHVUKLQRKRUQLVYHU\SKDOLFXVHGLQSRUQ1RWHDOVRWKDWWKHVHYLUXVHVDUHQRQHQYHORSHGQDNHG

    (QWHUR3ROHLROLNHSHQLVSROH&R[VDFNLH$DQG%YLUXVHVFRFNVHFKRYLUXVSRUQVWDUKDVVXFKDORRVHYDJLQDWKHUHLVDFDYHOLNHHFKR

    &R[VDFNLHYLUXVW\SH$&DXVHVKDQGIRRWPRXWKGLVHDVH/RJLFDOFRQVLGHULQJSRUQWKHPHZHLUGSHUYHUVHKDQGIRRWPRXWKVH[

    1HJDWLYHVWUDQGHG51$YLUXVHV $OZD\V%ULQJ3RO\PHUDVH2U)DLO5HSOLFDWLRQ$UHQDYLUXVHV

    %XQ\DYLUXVHV3DUDP\[RYLUXVHV2UWKRP\[RYLUXVHV)LORYLUXVHV5KDEGRYLUXVHV

    6HJPHQWHGYLUXVHV%2$5%XQ\DYLUXVHV2UWKRP\[RYLUXVHV$UHQDYLUXVHV5HRYLUXVHV$%2$5FDQULS\RXLQWRVHJPHQWV

    2UWKR0

  • 5KDEGRYLULGDH 5KDEGRLVVKDSHGOLNHDEXOOHW

    2OG\HOOHUWKHGRJZKRZDVVKRWE\DEXOOHWZDVVKRWEHFDXVHKHKDGUDELHV

    &DXVHVUDELHVQHJULERGLHVDUHSDWKRJQRPRQLF,QFOXVLRQVRIYLUXVLQ&16QHUYHFHOOVSLFWXUHDELJEODFNUDELGGRJLQDQHXURQ

    527$5LJKW2XW7KH$QXV0RVWLPSRUWDQWJOREDOFDXVHRILQIDQWLOHJDVWURHQWHULWLVPDMRUFDXVHRIDFXWHGLDUUKHDLQ86GXULQJZLQWHUHVSHFLDOO\GD\FDUHFHQWHUVNLQGHUJDUWHQV

    $UERYLUXVHV DUWKURSRGERUQH IOLHVWLFNVEXJV IODYLWRJDEXQ\D 3D5D0\[RYLUXVHV 3DUDLQIOXHQ]D5690HDVOHV0XPSV (EROD+HPRUKDJLFIHYHU%OHHGIURPPXFRXVPHPEUDQHV

    7KHUHLVD7XUNLVKVLQJHUFDOOHG,ERKWWSZZZ\RXWXEHFRPZDWFK"Y ;+T*%GRUR8JLUOVORYHKLPVRPXFKDQGKHJHWV62PXFKVH[DQGLVVRZLOGDQGDQLPDOLVWLFKHLVDOZD\VPDNLQJPXFRXVPHPEUDQHVEOHHG

    5XEHOOD5XE(OODRUUXEDJLUOHOODLVJLUOLQVSDQLVK:KHQ,UXEDJLUOLQSUHSDUDWLRQIRUVH[,NLVVKHUEHKLQGWKHHDUSRVWDXULFXODUO\PSKDGHQRSDWK\,DOVREHJLQDWWKHKHDGDQGPRYHGRZQUDVKVWDUWVDWKHDGDQGPRYHVGRZQ

    $QWLYLUDOPHGLFDWLRQV )RVFDUQHW'1$SRO\PHUDVHLQKLELWRUWKDWELQGVWKH

    S\URSKRVSKDWHELQGLQJVLWHRIWKHHQ]\PH)26FDUQHW S\UR)26SKDWHDQDORJ

    /RJLFDOO\GRHVQRWQHHGWREHSKRVSKRU\ODWHGVLQFHLVDOUHDG\DS\URSKRVSKDWH

    +,9GUXJV

  • 1XFOHRVLGHQXFOHRWLGHHWFUHYHUVHWUDQVFULSWDVHLQKLELWRUV157,V

    7HQRIRYLU1XFOHR7LGHDQDORJXH =LGRYXGLQH='96WDYXGLQH+DYH\RXGLQHG

    YXGLQHZLWKP\QXFOHDUQXFOHRVLGHVIDPLO\" %RWKDUH157,V ='9SUHYHQWVIDPLOLDOWUDQVPLVVLRQIURP

    PRWKHUWRIHWXV 7KH/$67WKLQJ\RXZDQWWRGRLV

    JHWDEDE\LQIHFWHGZLWK+,9=LVODVWOHWWHULQDOSKDEHW

    (IDYLUHQ]&DXVHVDEQRUPDOGUHDPVWKDWDUHRIWHQVFDU\'UHDPLQJDERXWD[HZLHOGLQJHOYHV

    7KLQNRIHIDYLU(1=DVWKH1V1157,WKDWFDXVHV1DXVHDDQG1LJKWPDUHV

    3URWHDVHLQKLELWRUV 1DPHVHQGLQQDYLU1$9,5QHYHU7($6(D

    SUR7($6( 5LWRQDYLULQKLELWVF\WRFKURPH3DQGLVWKXV

    XVHGDVDERRVWHUWRPDNHRWKHUDQWLYLUDOVODVWORQJHU,WLVOLNH5LJKW2QRWKHUGUXJVGR\RXUWKLQJ

    )XVLRQLQKLELWRUV HQ)8YLUWLGH)8IRU)86(

    ,QIOXHQ]DGUXJV $PDQWDGLQH

    7UHDWVLQIOXHQ]D$127LQIOXHQ]D%WKDWLVZKDWWKH$LQ$PDQWDGLQHLVIRULQDGGLWLRQWKH$LVIRUSUREOHPVZLWKWKHFHUHEHOO$DWD[LVGL]L]QHVVVOXUUHGVSHHFK

    $PDQWRGLQHPXVWWDNHRIIKLVFRDWWKLVGUXJSUHYHQWVYLUDOJHQRPHXQFRDWLQJLQWKHKRVWFHOO

    $PDQWRGLQHRQDGDWHDOVRNQRZVKHLVJRLQJWRJHWVRPHSXVV\ODWHUVRKHJHWVDGRSDPLQHVXUJH7KXVXVHGLQWKHWUHDWPHQWRI3DUNLQVRQV

    5LPDQWLGLQHLVVLPLODUEXWZLWKH[WUDSHUNVOLNHLWLVJLYLQJWKHXVHUDULPMREGRHVQRWUHTXLUHGRVHDGMXVWPHQWVLQUHQDOIDLOXUHOHVV&16VLGHHIIHFWVDQ[LHW\FRQIXVLRQ

    1HXUDPLQLGDVHLQKLELWRUV2VHOWDPLYLU]DQDPDYLU =D1$PLYLUDQG2VHO1$PLYLURVHOWDPLYLU

    %RWKDUH1HXUR$PLQLGDVHLQKLELWRUV 3URWR]RD

  • 7ULFKRPRQDVYDJLQDOLV$WULFNDQGDPRDQ3URVWLWXWH67'FDXVHVWULFKRPRQDVYDJLQLWLV\HOORZWKLQZDWHU\IURWK\PDORGRURXVGLVFKDUJHFDQKDYHUHGVWUDZEHUU\FHUYL[YDJLQDPHQDUHDV\PSWRPDWLFFDUULHUVWKDWFDQJLYHWRZRPHQ

    3URVWLWXWHVDUHSRRUVRWKH\WDNHWKHPHWUREXVPHWURQLGD]ROHLV7[

    7KHWULFNSURVWLWXWHLVKDSS\VKHLVPRDQLQJVKHLVH[FLWHGVRKHUPXFRXVLVHQJRUJHGZLWKEORRGDQGVWUDZEHUU\FRORUHGVKHLVDOVRKDSS\EHFDXVHWKHFOLHQWERXJKWKHUFKDPSDJQHFRUNVFUHZPRWLOLW\

    %RUUHOLD%XUJGRUIHULEDFWHULDO\PHGLVHDVHFDQEHWUDQVPLWWHGZLWK%DEHVLDSURWR]RDPDOWHVHFURVVLQ5%&KHPRO\WLFDQHPLDEHFDXVHERWKXVHWKHL[RGHVWLFN

    1DHJOHULDIRZOHUL.QRZQIRU)2:/3/$

  • 0DODULD 3IDOFLSDUXP7KHPRVWVHYHUHW\SHRIPDODULDFDXVLQJ

    RFFOXVLRQRIFDSLOODULHVLQEUDLQNLGQH\VOXQJV3)$/&H3HQLVOLNHDGLOGR7KLVRQHUDSHV\RXOLNHDELJGLOGR

    $OVRFDXVHVSUHWW\PXFKFRQWLQXRXVGDPDJHGDLO\F\FOHV 3YLYD[RYDOH7KHVHWZRDUHDOZD\VJURXSHGWRJHWKHUOLNH

    GD\V&\FOHHYHU\KRXUVWHUWLDQ 3PDODULDH7KHRWKHURQHF\FOHVHYHU\KRXUVTXDUWDQ

    *LDUGLDODPEOLD&DXVHVIRXOVPHOOLQJIDWW\GLDUUKHD*LDUGLDVRXQGVOLNHWKHIDWW\FKRFRODWHV*KLUDUGHOOL

    $QWL3URWR]RD$QWLELRWLFV 0HWURQLGD]ROHWKHPHWUREXVXVHGWRWUHDWVRPHSURWR]RD

    6LGHV%HFDXVHWKHEXVLVVKDN\\RXZLOOJHWVWRPDFKXSVHWLI\RXGULQNZKLOHWDNLQJLWGLVXOILUDPHIIHFWHDWLQJWKHPHWDOLFEXVFDQDOVRSXWDPHWDOOLFWDVWHLQ\RXUPRXWK

    7KHRUJDQLVPVVFUHDP*(7RXWRIWKHZD\RIWKHEXV7KHRUJDQLVPVWKDWFDQEHFUXVKHGE\WKHEXVDQGWUHDWHGDUH

    **LDUGLD ((QWDPRHED 77ULFKRPRQDV

    7UHDWPHQWRIPDODULD 'UXJVFDQEHRUGHUHGDOSKDEHWLFDOO\EDVHGRQZKHQ\RX

    ZRXOGXVHWKHP&KORULTXLQH0HIORTXLQH3ULPDTXLQH &KORULTXLQH%HJLQZLWKWKLV 0HIORTXLQH8VHWKLVLIUHVLVWDQWFDQDOVR

    XVHTXLQLQHLQFRPELQDWLRQZLWKS\ULPHWKDPLQHVXOIRQDPLGHLQWKLVFDVH

    3ULPDTXLQH8VHIRUGRUPDQWK\SQR]RLWHIRUPVLQYLYD[RYDOH

    $OWHUQDWLYHO\,QHHGDFKORDNIRUPHSURP DOWHUQDWLYHO\&HDVLQJ0DODULDO3URJUHVVLRQ

  • +HOPLQWKV $QF\ORVWRPDSHQHWUDWHVNLQRIIHHWFORVHWRDQNOH 6FKLVWRVRPD

    &KURQLFLQIHFWLRQZLWKVFKLVWRVRPDKDHPDWRELXPFDQFDXVHVTXDPRXVFHOOFDUFLQRPDRIEODGGHU&KURQLFLQIHFWLRQZLWKVFKLVWFDQFHUZKHUH\RXSLVV

    &ORQRUFKLVVLQHQVLVRUFDNLOOHUZKDOHUHPLQGV\RXWKDW\RXJHWWKLVIURPHDWLQJXQGHUFRRNHGILVKOHDGLQJWRFKRODQJLRVDUFRPDDNLOOHUZKDOHLQ\RXUELOHGXFW

    1HPDWRGHURXWHVRILQIHFWLRQ ,QJHVWHG(QWHURELXV$VFDULV7ULFKLQHOOD

  • 0+&,LVVLPSOH7KXVPDWFKHGZLWKWKHVLPSOHOHWWHUV$%&0+&,LVHQFRGHGE\+/$$+/$%+/$&

    0+&+/$'5+/$'4+/$'37KH'5ZHQWWRGDLU\TXHHQ'4WRJHWDGRFWRUSHSSHU'3

    0+&UHFHSWRUKDVWUDQVPHPEUDQHVSDQQLQJXQLWVFRPSDUHGWR0+&KRZHYHUUHPHPEHUWKDW0+&QHHGVEHWDPLFURJOREXOLQEXWWKLVLV127DWUDQVPHPEUDQHXQLW

    +/$VXEW\SHVDVVRFLDWHGZLWKGLVHDVHV %7KH3$,5GLVHDVHV!3VRULDVLV$QN\ORVLQJ6SRQG\OLWLV

    ,QIODPPDWRU\ERZHOGLVHDVH5HLWHUVV\QGURPH$SDLULVIRU%

    $OVR%ORRNVOLNHD3$,5RIWLWV %$VVRFLDWHGZLWK*UDYHVGLVHDVH,OLNHWRPDVWXU%DW

    *UDYHVGLVHDVHEHFDXVHGHDGERGLHVWXUQPHRQ '5DQG'5'IRU'LDEHWHVPHOOLWXVW\SHGRQRWVHH'0,,

    DVVRFLDWLRQZLWKDQ\RIWKH+/$W\SHV +2:(9(5'0,,KDVWKHVWURQJHUJHQHWLFOLQNDJHLWMXVW

    LVQWDVVRFLDWHGZLWK+/$ *HQHUDWLRQRIUHFHSWRUGLYHUVLW\

    7KHEHWDFKDLQRIWKH7FHOOUHFHSWRULVDQDORJRXVWRWKHKHDY\FKDLQRIWKH%FHOOUHFHSWRUMXVW,J0RU,J'$EHWDPDOHLVJHQHUDOO\IDWKHDY\DVIXFN

    &\WRNLQHVDQGWKHLUIXQFWLRQV 7RUHPHPEHU,/WKURXJK,/XVH+RW7%RQHVW($NLV

    ,/&DXVHVIHYHUKRW ,/6WLPXODWHV7FHOOVIRUH[DPSOHUHOHDVHGE\7K

    FHOOVLQWKHDFWLYDWLRQRI7FFHOOVE\DYLUXVLQIHFWHGFHOO ,/6WLPXODWHVERQHPDUURZJURZWKDQGGLIIHUHQWLDWLRQ

    RIERQHPDUURZVWHPFHOOVIXQFWLRQVOLNH*0&6) ,/6WLPXODWHV,J(SURGXFWLRQWKDWLVLWVWLPXODWHV

    FODVVVZLWFKLQJWKXVERWK,J(DQG,J*DVZHOODVGLIIHUHQWLDWLRQLQWR7KFHOOVJURZWKRI%FHOOV

    ,/6WLPXODWHV,J$SURGXFWLRQDQGWKXVFODVVVZLWFKLQJIURP,J0WR,J$DOVRSURPRWHVGLIIHUHQWLDWLRQRI%FHOOVVWLPXODWHVJURZWKGLIIHUHQWLDWLRQRIHRVLQRSKLOV

    ,/LVDS\URJHQLVGHYLOQXPEHUVRFDQDVVRFLDWHZLWKKHDWILUH

    $OVRVWLPXODWHVFODVVVZLWFKLQJWR,J*ORRNVOLNHD* &OHDQXSRQDLVOH1HXWURSKLOVDUHUHFUXLWHGE\,/WRFOHDU

    LQIHFWLRQVWKH\DUHWKHFODVVLFFOHDQXSFHOOV ,/UK\PHVZLWKPHQ,GRQWOLNHPHQVRWKH\LQKLELW

    PHKDYLQJDERQHUHVSHFLDOO\PHQWKDWPD\UDSHPHLQDSULVRQFHOO,/LQKLELWVFHOOPHGLDWHGLPPXQLW\LQKLELWV7KFHOOV

  • PDFURSKDJHV 7KXVORJLFDOO\VHFUHWHGE\UHJXODWRU\7FHOOV %87LWDFWLYDWHV7K7KXVLWSUHYHQWVFHOOPHGLDWHG

    LPPXQLW\HQFRXUDJHVKXPRUDOLPPXQLW\ ,/0DNHVPHJDNDU\RF\WHGLIIHUHQWLDWHLQWRSODWHOHWVSLFWXUH

    WKHDQGRIDVWZROLWWOHSODWHOHWSDUWLFOHVORRNDWWKDWVKLWEHORZWKRVHSODWHOHWVORRNOLNH

    ,/$FWLYDWHV7KFHOOV$FWLYDWHVLQRUGHUWDNHFDUHRILQYDGHUV

    ,/,VRW\SHVZLWFKLQJWR,J(VLQFHWKLVFDXVHVDOOHUJ\UDVKHWFLWLVORJLFDOWKDWLWZRXOGEHWKLVYHU\XQOXFN\QXPEHU

    &'PDUNHUV WRUHPHPEHU&'LVRQWKH%FHOOZKHUHDV&'/LVRQWKH7

    FHOOMXVWWKLQNDRI%HHU ,PPXQRJOREXOLQLVRW\SHV

    :KHQ%O\PSKRF\WHJHWVROGHULWFDQLVRW\SHVZLWFKLWFDQWKHQVHFUHWH$*DQG(GRHVWKLVLQLWVROG$*(

    ,QWKHFODVVLFSDWKZD\,J*DQG,J0IL[FRPSOHPHQW*HQHUDOPRWRUV*0LVDFODVVLF

    ,J0LVDSHQWDPHUZKHQLQEORRGQRWHWKDWWKHOHWWHU0KDVSRLQWV SHQWD

    ,J(DFWLYDWHV(RVLQRSKLOVWRNLOOKHOPLQWKV ,ZDQWWR%DQG0'%FHOOVKDYH,J0DQG,J'RQWKHLUVXUIDFH

    DFWLQJDVUHFHSWRUV &\WRWR[LF7FHOOV

    *UDQ]\PHDQG*UDQXO\VLQ7ULJJHUDSRSWRVLVSURJUDPPHGGHDWKLQWDUJHWFHOO

    /LNHDQROGJUDQQLH:KHQSHRSOHJHWUHDOO\ROGWKH\DUHSURJUDPPHGWRGLHDSRSWRVLV

    $QWLERG\VWUXFWXUHDQGIXQFWLRQ 7KHFRQVWDQW)FUHJLRQ

    &RQVWDQW &DUER[\WHUPLQDO

  • &RPSOHPHQWELQGLQJRFFXUVDW&+ &DUERK\GUDWHVLGHFKDLQV

    &RPSOHPHQW &E2SVRQL]DWLRQELQGVEDFWHULD &D&D$QDSKDOD[LV

    ,QWHUIHURQPHFKDQLVP ,QWHUIHURQLQWHUIHUHVZLWKYLUXVHV$OOLQWHUIHURQVSODFH

    XQLQIHFWHGFHOOVLQDQDQWLYLUDOVWDWH &HOOVXUIDFHSURWHLQV

    &'LVWKHUHFHSWRUIRU(SVWHLQ%DUUYLUXV\RXFDQGULQN%HHUDWWKHEDUUZKHQ\RXDUH%LQGV%FHOOV

    $FXWHSKDVHUHDFWDQWV.H\RYHUDOOLPPXQHV\VWHPVWLPXODWRUV,/DQG,/FDXVHIHYHU71)DOSKDUHPHPEHUDORQJZLWK,/WKDWLVILUVWLQWHUOHXNLQWKLVLVILUVW71)ORJLFDOWKDWERWKZRXOGEHUHOHDVHGLQJHQHUDODFXWHLPPXQHUHVSRQVH

    3DVVLYHYVDFWLYHLPPXQLW\ $IWHUH[SRVXUHWR7HWDQXVWR[LQ%RWXOLQXPWR[LQ+%9RU5DELHV

    YLUXVSDWLHQWVDUHJLYHQSUHIRUPHGDQWLERGLHVSDVVLYH7R%H+HDOHG5DSLGO\

    3DWKRORJ\ +\SHUVHQVLWLYLW\

    VWW\SHLVIDVWOLNHPLQXWHVWKDQGODVWLVVORZGHOD\HGOLNHKRXUV

    7KHYDULRXVK\SHUVHQVLWLYLWLHV$&,'$QDSK\ODFWLFDQG$WRSLF,&\WRWR[LFDQWLERG\PHGLDWHG,,,PPXQHFRPSOH[W\SH,,,'HOD\HGFHOOPHGLDWHG,9

    7\SH7V7O\PSKRF\WHV7UDQVSODQWUHMHFWLRQV7%VNLQWHVW7RXFKLQJFRQWDFWGHUPDWLWLV

    $XWRDQWLERGLHV $QWL&HQWURPHUH&5(67VFOHURGHUPD

    &&DOFLILFDWLRQFHQWURPHUHDQWLERG\ 55D\QDXGVSKHQRPHQRQ ((VRSKDJHDOG\VPRWLOLW\ 66FOHURGDFW\O\WDSHUHGFODZOLNHILQJHUV 77HODQJLHFWDVLDV

    $QWL-R3RO\0

  • ,PPXQH'HILFLHQFLHV %UXWRQVDJDPPDJOREXOLQHPLD6HHQLQ%R\VEHFDXVHLWLV;

    OLQNHG 'HIHFWLQ%7.DW\URVLQHNLQDVHJHQH %ORFNVSUR%FHOOIURPIRUPLQJSUH%FHOO%FHOOVDUH

    IXFNLQJXSLQ%UXWRQV 6LQFH%FHOOVDUHIXFNLQJXSWKHUHLVVXHVZLOO

    FOHDUO\EHGXHWRDQRSVRQL]DWLRQGHIHFW +\SHU,J0%FHOOVFDQQRW0DWXUH7KXV%FHOOVFDQQRWFODVV

    VZLWFK7KXV%FHOOVFDQRQO\PDNH,J0QRW$*(VHHQLQFODVVVZLWFKLQJ

    'L*HRUJHV\QGURPHTGHILFLHQF\&$7&+ &&RQJHQLWDOKHDUWJUHDWYHVVHOGLVHDVH

    7FHOOGLVRUGHUVR7UHODWHGFDUGLDFSUREOHPV7UXQFXVDUWHULRVXV7HWUDORJ\

    $$EQRUPDOIDFLHV 77K\PLFSDUDWK\URLGDSODVLD &&OHIWSDODWH ++\SRFDOFHPLDDQGUHVXOWDQWWHWDQ\

    6HOHFWLYH,JGHILFLHQF\,J$GHILFLHQF\PRVWFRPPRQ,WLVJ$\WKDWGHVSLWHWKLVEHLQJFDOOHG,JGHILFLHQF\RQO\,J$UHDOO\GHFUHDVHVVLJQLILFDQWO\

    +\SHU,J(V\QGURPH-REVV\QGURPH&DQQRWJHWD-REEHFDXVHGLGD721K\SHURI(FVWDF\(

    (FVWDF\XVHULV)$7('WREHDIXFNLQJUHWDUGUHPHPEHUHFVWDF\PHVVHVXSWKHEUDLQ

    )FRDUVH)DFLHV $FROGQRQLQIODPHGVWDSK$EVFHVVHV 7UHWDLQHGSULPDU\7HHWK (LQFUHDVHG,J( ''HUPDWRORJLFSUREOHPVHF]HPD

    :LVNRWW$OGULFK:$V\QGURPH:$VWDWHLV,7(DOULJKWPHKQRWKLQJVSHFLDO:$LVP\KRPHVWDWH,ZRXOG:$

  • 77KURPERF\WRSHQLD ((F]HPD 7KHUHLVDOVRGHFUHDVHG,J0LQWKLVFRQGLWLRQEHFDXVH

    :DVKLQJWRQVWDWHKDVQR0XIISXVV\DJDLQ\RXQHHGWRJRWR1

  • 'UXJVWKDWDOORZUHFRYHU\RIERQHPDUURZDIWHUFKHPRWKHUDS\ )LOJDVWLPJUDQXORF\WHFRORQ\VWLPXODWLQJIDFWRU)LOOVWKHERQH

    PDUURZVWLPXODWLQJWKHSURGXFWLRQRIEORRGFHOOV 6DUJUDPRVWLPJUDQXORF\WHPDFURSKDJHFRORQ\VWLPXODWLQJ

    IDFWRU0DUU2VWLPXODWLQJ $/GHVOHXNLQLQWHUOHXNLQ/LNH$//RIWKHLPPXQHV\VWHP

    GUXJVLQYROYHLQWHUOHXNLQZKLFKLVZKDWWKLVGUXJLV 3DWKRORJ\

    ,QIODPPDWLRQ /HXNRF\WHH[WUDYDVDWLRQ

    5ROOLQJ5ROOLQJVODQJIRUEHLQJKLJKRQHFVWDF\DOVRFDOOHG;WKXVWKLVLVWKHSURFHVVZKHUHWKHOHXNRF\WHXVHVLWV6LDO\O/HZLV;ELQGV(VHOHFWLQHFVWDF\LVDOVRFDOOHG(DQG3VHOHFWLQ

    &DQDOVRUHPHPEHUVHOHFWLQVIRULQLWLDOORRVHELQGLQJEHFDXVHQHXWURSKLOKDVWRILUVWVHOHFWZKHUHLWZDQWVWRH[WUDYDVDWHEHIRUHDQ\WKLQJHOVH

  • 'LDSHGHVLVLVPHGLDWHGE\3(&$0,ZRXOGMXVW'LHGLDSHGHVLVLIVRPHRQHXVHGD3HH&DP3(&$0WRUHFRUGPHZKLOH,ZDVSHHLQJ

    7LJKWELQGLQJLVPHGLDWHGE\,&$0RQHQGRWKHOLXPDQG/)$LQWHJULQRQOHXNRF\WH6KHZDVVRWLJKW,&$0(ULJKWLQWHJULQKHUDQG,ZDV/)$IILQJODXJKLQJ

    0LJUDWLRQ1HXWURSKLOVDUHDWWUDFWHGWRVLWHRILQWHUHVWE\&D,//7%.DOOLNUHLQ1HXWURSKLOVOLNHWKLQJVWKDWDUH&,/.\

    +HPRUUKDJLFLQIDUFWVHHQLQWLVVXHVZLWKGXDOEORRGVXSSO\LQFOXGLQJ/LYHU,QWHVWLQHV/XQJ,ID/,/NLGKDVVH[WKH\ZLOOEOHHGKHPRUUKDJH

    7UDQVXGDWHYVH[XGDWH 7UDQVXGDWH 7KLQ ORZSURWHLQ ([XGDWH (Z WKLFNKLJKSURWHLQ

    $P\ORLGRVLV 3ULPDU\DP\ORLGRVLV3URWHLQLV$/GHULYHGIURP,JOLJKWFKDLQV

    PXOWLSOHP\HORPD$/ /LJKWFKDLQ 6HFRQGDU\DP\ORLGRVLVLVEDVHGRQWKHSURWHLQ$$

    ,UHPHPEHUWKLVEHFDXVHRQHRIP\UHODWLYHLVLQ$OFRKROLFV$QRQ\PRXV$$DQGVKHDWWHQGVPHHWLQJVVHFRQGDU\WRJHWWLQJDOOZDVWHG

    7KLVLVGHULYHGIURPVHUXPDP\ORLGDVVRFLDWHG6$$SURWHLQZKLFKLVVHHQLQFKURQLFLQIODPPDWRU\GLVHDVH$$ $FXWHSKDVHUHDFWDQW

    6HQLOHFDUGLDFDP\ORLGRVLV7KHSURWHLQWKDWDFFXPXODWHVLVWUDQVWK\UHWLQZKLFKLVGHULYHGIURP$)$) ROG)RJLHV

    'LDEHWHVPHOOLWXVW\SHDP\ORLGRVLVLVEDVHGRQDP\OLQZKLFKLV

  • GHULYHGIURP$($( (QGRFULQH 0HGXOODU\FDUFLQRPDRIWKHWK\URLG3URWHLQLV$&$/ZKLFKLV

    GHULYHGIURP&$/FLWRQLQ &DQDVVRFLDWHPHGXOODU\FDUFLQRPDZLWKERQHFDOFLWRQLQ

    EHFDXVHERQHVKDYHPHGXOOD 1RWHWKDWFDOFLWRQLQLVPDGHLQWKH&FHOOVRIWKHWK\URLGVR

    WKHFDOFLWRQLQWK\URLGFRQQHFWLRQLVORJLFDO 1HRSODVLD

    7XPRUJUDGHYVVWDJH 6WDJH 6SUHDGPRUHSURJQRVWLFYDOXHWKDQJUDGH 710VWDJLQJLQRUGHURIDVFHQGLQJSURJQRVWLFLPSRUWDQFH

    77XPRU 11RGHV 00HWDVWDVHV

    'LVHDVHFRQGLWLRQVDVVRFLDWHGZLWKQHRSODVPV 'RZQV\QGURPHLVDVVRFLDWHGZLWK$//:H$//IDOO'2:1

    1RWHWKDWLWLVDOVRDVVRFLDWHGZLWK$0/)DOODQGEUHDNWKHHQ$0/RIRXUWHHWK

    7XPRUVXSSUHVVRUJHQHV %5&$JHQHV&RGHIRU'1$UHSDLUSURWHLQV2K

    WKHGQD%5&$EURNHDOLNHDQ,WDOLDQSHUVRQVD\LQJLWRUVRPHWKLQJ%5&$ZLOOIL[LW

    SLVRQS SLVRQS 1)JHQHLVDVVRFLDWHGZLWKQHXURILEURPDWRVLVW\SHDQGLVRQ

    FKURPRVRPH7\SH '3&JHQH7XPRUVXSSUHVVRUDVVRFLDWHGZLWKSDQFUHDWLF

    FDQFHU'HOHWHGLQ3DQFUHDWLF&DQFHU '&&JHQH7XPRUVXSSUHVVRUDVVRFLDWHGZLWKFRORQFDQFHU

    'HOHWHGLQ&RORQ&DQFHU $QG\RXFDQSXW\RXU'&&GLFNLQDFRORQ

    7XPRUPDUNHUV %HWDK&*$PDUNHUIRU+\GDWLGLIRUPPROHV&KRULRFDUFLQRPDV

    DQG*HVWDWLRQDOWURSKREODVWLFWXPRUV 75$3$PDUNHUIRUKDLU\FHOOOHXNHPLDD%FHOOQHRSODVP

    75$3WKHKDLU\DQLPDO 2QFRJHQLFPLFUREHV

    6FKLVWRVRPDFDQFDXVHVTXDPRXVFHOOFDUFLQRPDRIWUDQVLWLRQDOHSLWKHOLXPHJEODGGHU6&+,67FDQJLYHFDQFHUZKHUH\RX3,66('

    6FKLVW6TXDPRXV +7/9FDQFDXVHDGXOW7FHOOOHXNHPLDO\PSKRPD+XUWIXO7

    FHOO/\PSKRPD9LUXV 3VDPPRPDERGLHVODPLQDWHGFRQFHQWULFFDOFLILFVSKHUXOHVVHHQLQ

  • YDULRXVQHRSODVPV7KHSVD0200$LVSLVVHGRIIEHFDXVHVKHKDV3063060RPPDFDQDOWHUQDWLYHO\XVH36D00RPD

    33DSLOODU\WK\URLG 00HQLQJLRPD 66HURXVF\VWDGHQRFDUFLQRPDRYDU\ 00HVRWKHOLRPD

    0HWDVWDVLVWREUDLQ /XQJ%UHDVW6NLQPHODQRPD.LGQH\UHQDOFHOOFDUFLQRPD*,

    /RWVRI%DG6WXII.LOOV*OLD 0HWDVWDVLVWROLYHU

    &RORQ6WRPDFK3DQFUHDV%UHDVW/XQJ&DQFHU6RPHWLPHV3HQHWUDWHV%HQLJQ/LYHU

    &DXVHVRIFDUFLQRPDRIWKHOXQJ&817LWLVDUHDOFXQWWRKDYHOXQJFDQFHU

    &&KURPLXP 88UDQLXP 11LFNHO 77RNLQJFLJDUHWWHV

    0HWDVWDVLVWRERQH&DQEHRVWHREODVWLFRVWHRO\WLFRUERWK 3URVWDWH7K\URLG7HVWHV%UHDVW/XQJ.LGQH\37%DUQXP

    /RYHV.LGV 2VWHREODVWLF3URVWDWHPHWDVWDVLVJHWWLQJ\RXUSURVWDWH

    UXEEHGPDNHV\RX%/$67RXWDEXQFKRIVHPHQDQGLWLVD%/$67

    2VWHRO\WLF/XQJ.LGQH\7K\URLG %RWK%UHDVWFDQFHUEUHDVWVFRPHLQWZRV

    3KDUPDFRORJ\ 3KDUPDFRG\QDPLFV

    (Q]\PH.LQHWLFV &RPSHWLWLYHLQKLELWRUVFURVVHDFKRWKHUFRPSHWLWLYHO\ZKLOH

    QRQFRPSHWLWLYHLQKLELWRUVGRQRWQRWHWKHFURVVLQJRIWKHJUHHQDQGUHGOLQHVEHORZ

  • 7RUHPHPEHUWKDW
  • NLVVDQGTLTNLFNWLOO\RXUHVLTVLFNRIVTVVH[ $OSKDT $OSKDL %HWDV %HWDV 0T 0L 0T 'V 'L +T +V 9T 9V

    1RWHWKDW'+9LVSLFNXSDUWLVWFRPPXQLW\VODQJIRU'HPRQVWUDWLRQRI+LJKHU9DOXH

    *TDFWLYDWHVSKRVSKROLSDVH&&XWVLHT& $VVRFLDWHGZLWK+$OSKD900+H\OLWWOH

    FXWVLH+$9H00 *LLVOLQNHGWR0$OSKD'7KH0$'VWKH\DUHDOO

    SLVV\VRWKH\WU\WRVWRSLQKLELWHYHU\WKLQJ 0DMRUIXQFWLRQVRIWKHUHFHSWRUV

  • JODXFRPD 3LORFDUSLQHLVDSRWHQWVWLPXODWRURIVZHDWWHDUVVDOLYD

    3,/HRQWKHVZHDWDQGWHDUV 0HWKDFKROLQH5HPHPEHUPHWKDFKROLQHFKDOOHQJHD

    WHVWIRUDVWKPDVWLPXODWHVPXVFDULQLQFUHFHSWRUVLQDLUZD\ ,QGLUHFWDJRQLVWV'RHVQRWGLUHFWO\ELQGUHFHSWRUUDWKHUDFWDV

    DQWLFKROLQHVWHUDVHV 7HQGWRKDYHVWLJPLQHLQQDPH 1HRVWLJPLQHKDVQR&16SHQHWUDWLRQ1(2&16 12

    &16 QHRVWLJPLQHYVS\ULGRVWLJPLQHS\ULGRVWLJPLQHLVORQJHU

    DFWLQJEFLWKDVWKHORQJHUQDPH (GURSKRQLXPLVXVHGLQWKHGLDJQRVLVRIP\DVWKHQLD

    JUDYLVDVLWLVH[WUHPHO\VKRUWDFWLQJ,ILQGWKDWWDONLQJRQWKHSKRQHLVDZNZDUGVR,PDNHP\FDOOVLQFUHGLEO\VKRUW,DPPXFKOLNHVRFLDOO\DZNZDUGSHQJXLQZKRLVVHHQEHORZ

    3K\VRVWLJPLQH 7UHDWVJODXFRPD3+

  • +RWDVDKDUHLQFUHDVHGERG\7GXHWRGHFUHDVHGVZHDWLQJ

    'U\DVDERQHGHFUHDVHGVHFUHWLRQVLQDLUZD\*,GU\PRXWK

    5HGDVDEHHWIOXVKHGVNLQ %OLQGDVDEDWH[WUHPHO\IDUVLJKWHGDVFLOLDU\PXVFOH

    FDQQRWFRQWUDFWDQGFDXVHDFFRPRGDWLRQ 0DGDVDKDWWHUGLVRULHQWDWLRQ %ORDWHGDVDWRDGFRQVWLSDWLRQ

    +H[DPHWKRQLXPLVDQLFRWLQLFDQWDJRQLVWWKXVLWEORFNVDOORIWKHJDQJOLDRIWKHDXWRQRPLF16SDUDV\PSDWKHWLF$1'V\PSDWKHWLF3XWDKH[RQVPRNHUVQLFRWLQHWRPDNHWKHPTXLW

    'LUHFW6\PSDWKRPLPHWLFV (SLQHSKLQHELQGV$//DGUHQHUJLFUHFHSWRUVEXWVHOHFWLYHIRU

    EHWDDWORZGRVDJHV%ORZVQRUWEORZZLWKDVWUDZZKLFKLVVKDSHGOLNHDVR%

    ,VRSURWHUHQROELQGVEHWDDQGEHWDHTXDOO\ZHOO,VRODWHGWREHWDLVRLPSOLHVVDPH

    'RSDPLQHELQGVDVIROORZV' '!EHWD!DOSKD,WLVREYLRXVWKDWWKH\ELQG'EHVWWKHQLWMXVWJRHVGRZQDOSKDEHWLFDOO\

    7KHVHOHFWLYHEHWDGUXJVEHWD!EHWDDUHWKH0$67GUXJVHDV\WROLQNWRDOEXWHURODVDVWKPDWLFVXVHWKLVDQGWKH\KDYHPDVWFHOOLVVXHVWKXVFDQHDVLO\OLQN0$67DQGEHWD!EHWD

    0$670HWDSURWHUHQRO$OEXWHURO6DOPHWHURO7HUEXWDOLQH

    UL72GULQHELQGVEHWD72EHWD $OSKDEORFNHUV

    6HOHFWLYHDOSKDEORFNHUV3UD]RVLQWHUD]RVLQGR[D]RVLQ,I\RXDUHWKHQXPEHUDOSKDPDOH\RXZLOOGRORWVRIVLQQLQJIXFNLQJ

    3KHRFKURPRF\WRPDVKRXOGEHVXUJLFDOO\UHPRYHGLQFRQMXQFWLRQZLWKSKHQR[\EHQ]DPLQHDQGSKHQWRODPLQH8VH3KHDQG3KHWRWUHDWD3KHR

    3KHQR[\%(1=DPLQHLVWKHLUUHYHUVLEOHRQH,)VRPHRQHJDYHPHD%(1=WKH\ZRXOGQHYHUJHWLWEDFNLWZRXOGEHLUUHYHUVLEOH

    %HWDEORFNHUV 3DUWLDOEHWD$JRQLVWV3LQGRORO$FHEXWRORO 1RQVHOHFWLYHDQWDJRQLVWVEHWD EHWDDOOVWDUWZLWKOHWWHUV

    EHWZHHQ1DQG=ZLWKWKHRQHH[FHSWLRQRIODEHWDOROQRWHWKHDEQRUPDOHQGLQJQRWRORO3URSUDQROROWLPROROQDGROROSLQGRORO

    %HWDVHOHFWLYHDQWDJRQLVWVDOOVWDUWZLWKOHWWHUVEHWZHHQ$DQG

  • 0LI\RXDUHVHOHFWLYH\RXGHPDQGJUDGH$$FHEXWRORO%HWD[RORO(VPRORO$WHQROR0HWRSURORO

    $%($0RIEHWDEORFNHUVLVVKDSHGOLNHDODVHU%($0 $OPRVWDOOEHWDEORFNHUVHQGLQROROWKHQRQVHOHFWLYHEHWD

    $1'DOSKDDQWDJRQLVWVKDYHZHLUGQDPHHQGLQJVODEHWDOROFDUYHGLORO

    3DUWLDO$JRQLVWV3LQGRORO$FHEXWRORO 7R[LFLWLHVDQG6LGH(IIHFWV

    6SHFLILFDQWLGRWHV $FHWDPLQRSKHQ8VH1DFHW\OF\VWHLQHDVDQWLGRWH ,URQ)HGH)(URDPLQHGH)(OLNHUHPRYHWKH)H *ROGDQGDOVRPHUFXU\DUVHQLF',0(FDSURO%$/GLPH

    UHPLQGV\RXRIPRQH\OLNHJROGDOVRVXFFLPHUEHFDXVHJROGVXFNVQRZDQGLWLVDOODERXWSODWLQXP

    &RSSHUDQGDOVRDUVHQLFJROG3HQLFLOODPLQHSHQQ\VDUHPDGHRIFRSSHU

    /HDG&DQXVH$//RIWKHDJHQWVWKDWZRUNIRUWKHRWKHUPHWDOOLFLRQV$//EHFDXVHOHDGSRLVRQLQJLVVRFRPPRQ3HQLFLOODPLQHVXFFLPHUGLPHFDSURO

    %87FDQDOVRXVH&D('7$('VRXQGDWWKHHQGRI/($'

    0HWKHPRJORELQ0HWK\OHQHEOXH &DQDOVRXVHYLWDPLQ&ZKLFKLVORJLFDOFRQVLGHULQJWKDW

    YLWDPLQ&LVDQDQWLR[LGDQWDQGPHWKHPRJORELQ)HKDVR[LGL]HG)H

    %HQ]RGLD]HSLQHV8VHIOXPD]HQLOEHFDXVHLI\RXDUHVRVLFN\RXDUHUROOLQJLQDEHQ]\RXKDYHWKHPRWKHUIXFNLQJIOXUDSPXVLFVODQJ

    7&$V8VH1D+&2SODVPDDONDOLQL]DWLRQSUHWHQGWKH$LQ7&$VWDQGVIRU$DFLGVDUHUHPRYHGXVLQJEDVH

    +HSDULQ8VH3URWDPLQHWKH+LQ+HSDULQLVOLNHD3URWRQ 7KHRSK\OOLQH7KHRLVDFRFNEORFNHUVRZHXVHDEHWD

    EORFNHU )RPHSL]ROH)RDP\SHH&DQOLQNWKLVWRHWKDQROVLQFHZKHQ

    \RXJHWDOOZDVWHG\RXSURGXFHWRQVRIIRDP\SHH,QKLELWVDOFRKROGHK\GURJHQDVH

    8VHSK\VRVWLJPLQHVDOLF\ODWHLQWKHFDVHRIDQWLPXVFDULQLFDQWLFKROLQHUJLFDJHQWWR[LFLW\3K\VRVWLJPLQHSKL[HVDWURSLQH

  • RYHUGRVH $PLQR&$3URLFDFLGLVXVHGWRWUHDWW3$VWUHSWRNLQDVHWR[LFLW\

    6WUHSWRNLQDVHDQGW3$WRWDOO\GHVWUR\ILEULQFORWVDOPRVWOLNHWKH\DUHVKRRWLQJRU&$3SLQJWKHP

    3URORQJHG47LQWHUYDO8VH0JEHFDXVH47VQHHG0\*RQDGVLQWKHLUPRXWK

    %*WKHUDSSHUDOZD\VDOOKLJKJHWVKLJKRQ%HWDEORFNHUVDOOWKHWLPH7UHDWZLWKJOXFDJRQ%*OLQNV%HWDEORFNHUDQG*OXFDJRQ

    $&KLQKLELWRUVRUJDQRSKRVSKDWHV&DQXVHSUDOLGR[LPHUHJHQHUDWHV$&KHVWHUDVH3UD\WKDWWKHRUJDQRSKRVSKDWHGRHVQWNLOO\RXSUD\HUOHDGVWRUHJHQHUDWLRQDPLUDFOH

    $PSKHWDPLQHVDUHEDVLF

  • 'UXJVFDXVLQJDSODVWLFDQHPLD1R0RWKHUIXFNLQJ&HOOVWR%HDWD3ODVWLFDQHPLD

    16$,'V 0HWKLPD]ROH &KORUDPSKHQLFRO %HQ]HQH 378

    'UXJVFDXVLQJFXWDQHRXVIOXVKLQJ9$1&9DQFRP\FLQUHGPDQV\QGURPH$GHQRVLQH1LDFLQ&DFKDQQHOEORFNHUV

    'UXJVFDXVLQJKHPRO\VLVLQ*3'SDWLHQWV+HPRO\VLV,63$,1 ,VRQLD]LG 6XOIRQDPLGHV 3ULPDTXLQH $VSLULQ ,EXSURIHQ 1LWURIXUDQWRLQ

    127($OVR'DSVRQHDQG1DSWKDOHQH,XVHWKHPQHPRQLF',13$,16

    'UXJVFDXVLQJPHJDOREODVWLFDQHPLD3KHQ\WRLQ0HWKRWUH[DWH6XOIDGUXJV

    +DYLQJD%/$67ZLWK306EORRG%/$676RXWRIWKDWYDJLQDLQ306

    'UXJVFDXVLQJSXOPRQDU\ILEURVLV%/$%LWVKDUGWREODEZKHQ\RXKDYHSXOPRQDU\ILEURVLV

    %/HRP\FLQ $PLRGDURQH %XVXOIDQDON\ODWLQJDQWLQHRSODVWLFDJHQW

    'UXJVFDXVLQJJ\QHFRPDVWLD6RPH'UXJV&UHDWH$ZHVRPH.QRFNHUV 6SLURQRODFWRQH 'LJLWDOLV &LPHWLGLQH

  • $OFRKRO .HWRFRQD]ROH

    'UXJVFDXVLQJSKRWRVHQVLWLYLW\6$7)RUDSKRWR 6XOIRQDPLGHV $PLRGDURQH 7HWUDF\FOLQH )8

    'UXJVFDXVLQJD3DUNLQVRQVGLVHDVHOLNHV\QGURPH+DORWKDQHFKORURSURPD]LQH5HVHUSLQH0HWRFORSUDPLGH7R3DUNKLVFDUDWWKHSURP+DOUHVHUYHGDPHWRPHDGRZ

    &DQUHSODFH+DOZLWKWKHDQJHODQGUHPHPEHU+DOR 'UXJVFDXVLQJ6-V\QGURPHUDVK6HL]XUH&LOOLQV6XOIDV&DQW

    JHWDQ\6&6VH[EHFDXVH\RXKDYHDGLVJXVWLQJUDVK 6HL]XUH(WKRVX[LPLGHODPRWULJLQHFDUEDPD]HSLQH

    SKHQREDUELWDOSKHQ\WRLQ 6XOIDV6XOIDGUXJV &LOOLQV3HQLFLOOLQ

    $OVRDOORSXULQRO 7HQGRQLWLVWHQGRQUXSWXUH)OXRURTXLQRORQHVSLFWXUH4XLQQWKH

    PHGLFLQHZRPDQPQHPRQLFLQWURGXFHGLQWKHPLFURELRORJ\VHFWLRQWULSSLQJRQDKLNHDQGUXSWXULQJKHUWHQGRQ

    $OVRSRWHQWLDOO\FDXVHVFDUWLODJHGDPDJHGHVWUR\LQJWKHJURZWKSODWHLQNLGV.LGVDOOVKRUWDQGFORVHWRWKHIOXRU

    )OXRURTXLQR/21(6KXUWDWWDFKPHQWVWR\RXU%21(67HQGRQLWLVDQGWHQGRQUXSWXUHLQDGXOWVOHJFUDPSVDQGP\DOJLDVLQNLGV

    'UXJVFDXVLQJ6/(OLNHV\QGURPH6+,337KHFODVVLFPQHPRQLFLVLWVQRW+,33WRKDYHOXSXVEXWWKDWQHJOHFWVWKH6XOIRQDPLGHV

    6XOIRQDPLGHV +\GUDOD]LQH ,1+ 3URFDLQDPLGH 3KHQ\WRLQ 4XLQLGLQH 0HWK\O'23$ &KORUSURPD]LQH

    'UXJVFDXVLQJFLQFKRQLVPGL]]LQHVVKDYLVLRQFKDQJHVWLQQLWXV4XLQLGLQHTXLQLQH,WLVDFLQFKWRIXFN4XLQ

    'UXJVFDXVLQJVHL]XUHV%,,LLLLLLLLLLLLLLLLL\RXVD\DV\RXKDYHDVHL]XUHDQGIDOOWRWKHJURXQG

    %XSURSLRQ ,PLSHQHP ,1+

  • 'UXJVFDXVLQJGLVXOILUDPOLNHUHDFWLRQ0DNH6RPH&KLQHVH3XNH$VLDQ*ORZ

    0HWURQLGD]ROH 6XOIRQ\OXUHDVVWJHQ FHUWDLQ&HSKDORVSRULQVFHIHPHQGROH 3URFDUED]LQH

    'UXJVFDXVLQJLQWHUVWLWLDOQHSKULWLV6WRS0DNHV5HQDO1HSKURQV)ODPHRU0DNHV5HQDO1HSKURQV)ODPHDQG6PRNH

    6XOIRQDPLGHV 0HWKLFLOOLQ 5LIDPSLQ 16$,'V )XURVHPLGH

    3LQGXFHUV4XHHQ%DUE6WHDOV3KHQSKHQDQG5HIXVHV*UHDV\&DUEV&KURQLFDOO\DOWHUQDWLYHO\%&*3456

    4XLQLGLQH &DQDOVRLQKLELWEXWLQGXFWLRQLVPRVWLPSRUWDQWSHU)$

    4XLQLVDJLUOWKH\FDQQHYHUPDNHXSWKHLUPLQGV %DUELWXUDWHV 6W-RKQVZDUW 3KHQ\WRLQ 5LIDPSLQ *ULVHRIXOYLQ &DUEDPD]HSLQH &KURQLFDOFRKROXVH

    3LQKLELWRUV3,*&$.(6DOWHUQDWLYHO\,QKLELW\RXUVHOIIURPGULQNLQJEHHUIURPD.(*EHFDXVHLWPDNHV\RX$FXWHO\6,&N3,*&$.(6VRXQGGLVJXVWLQJWKRXJKLQKLELWLQJ\RXIURPHDWLQJWKHP

    3URWHDVHLQKLELWRUV ,1+ *UDSHIUXLWMXLFH &LPHWLGLQH&LSURIOR[DFLQ $FXWHDOFRKRO .HWRFRQD]ROH (U\WKURP\FLQ 6XOIRQDPLGHV

    $OFRKROPHWDEROLVP 0HWKDQROLVSURFHVVHGWRIRUPDOGHK\GHE\DOFRKROGHK\GURJHQDVH

    )RUPDOGHK\GHRUHPEDOPLQJIOXLGLVDVODQJQDPHIRUWKHGUXJ3&3FDQOLQNWKHGUXJPHWKOLNHFU\VWDOPHWKZLWK3&3)RUPDOGHK\GH3&3FDXVHVVHYHUHUHWLQDOGDPDJHOLNHEHLQJKLJKRQ3&3DQGVHHLQJVXFKFUD]\VKLW\RXUUHWLQDLVGDPDJHG

    'UXJQDPHVXIIL[HV DILO(UHFWLOHGLVIXQFWLRQGUXJ([6LOGHQDILO)LODJLUOXS

  • ZLWKSHQLVILOWKHSHQLVXSZLWKEORRG HWLQH665,([IOXR[HWLQH7HHQDJHUVDUHFRPPRQO\

    GHSUHVVHG PXVWLQH1LWURVXUHDV1LWURVRQD0XVWDQJ

    25*$16

  • 0LWUDOVWHQRVLV06KDVDQRSHQLQJVQDS260LFURVRIW06PDNHVDQRSHUDWLQJV\VWHP26

    $RUWLFVWHQRVLV$6KDVWKHHMHFWLRQFOLFN(&,MXVWQHHG$6(&

    $OWHUQDWLYH+HVDLG,KDGVXFKDQLFH$6V,JHW([WUD&UHGLW

    &DUGLDFP\RF\WHSK\VLRORJ\ 3KDVHLVWKHUDSLGXSVWURNHZKHUHWKHSRWHQWLDOJHWVUHDOO\KLJK

  • &RDUFWDWLRQRIWKHDRUWD ,QIDQWLOHW\SH&RDUFWDWLRQRIWKHDRUWDLVSUR[LPDOWRWKH

    GXFWXVDUWHULRVXVSUHGXFWDO/LWWOHLQIDQWVEHORQJLQSUHVFKRRO

    $OWHUQDWLYHO\,1IDQWLOHW\SHLV,1FORVHWRWKHKHDUW$'XOWW\SHLV'LVWDOWRWKH'XFWXV

    3DWHQWGXFWXVDUWHULRVXV (1'2PHWKDFLQHLQGRPHWKDFLQ(1'VSDWHQF\RI3'$

    3*((N((SVLWRSHQ &RQJHQLWDOFDUGLDFGHIHFWDVVRFLDWLRQV

    'RZQ6\QGURPH'6&DXVHV6HSWDO'HIHFWV6'HDV\WRSDLU'6DQG6'

    6HSWDOGHIHFWVLQFOXGH$6'96'$9'XHWRHQGRFDUGLDOFXVKLRQGHIHFW

    7XUQHUVV\QGURPH$VVRFLDWHGZLWK&RDUFWDWLRQRIWKHDRUWD 7LQD7XUQHUFRPPRQO\VQRUWHG&2$5&FRNHFRFDLQH

    (YROXWLRQRIDQ0, &RDJXODWLYHQHFURVLVLVVHHQLQ&DUGLDFLQIDUFWLRQ .H\WLPHUDQJHVWRUHPHPEHU1RQH)LYH7HQ/RWV7KDWLV

    GD\KRXUVGD\VGD\VGD\VGD\V!GD\VWKLQNPRQWKVRXW)$XVHVZHHNVIRUWKLVILQDOVWDJH

    )LUVWGD\ 1RYLVLEOHFKDQJHE\/0LQILUVWKRXUVQRWHWKDWLV

    WKHQXPEHURIGD\VIRUWKHQH[WVWDJH &RDJXODWLYHQHFURVLVDIWHUKRXUV&HOOVGLHUHOHDVH

    FRQWHQWVLQWREORRGVWUHDPDWWUDFW301V &RQWUDFWLRQEDQGVYLVLEOHDIWHUKRXUV'XHWR

    &DVWLPXODWLRQRIP\RF\WHV GD\V

    $FXWHLQIODPPDWLRQZLWKK\SHUHPLD301VORWVRIFRDJXODWLYHQHFURVLV

    GD\V *UDQXODWLRQWLVVXHDQGPDFURSKDJHV

  • ZHHNV!GD\V 7KLVLVWKHILQDOVWDJHVRMXVWLPDJLQHWKHILQDOVWDWHRIWKH

    KHDUWDIWHUDQ0,&RQWUDFWHGVFDUFRPSOHWHUHFDQDOL]HGDUWHU\JUD\ZKLWHUHJLRQRQKHDUWZKHUHLQIDUFWZDV

    'LDJQRVLVRI0, ,QWHUPVRIPDUNHUVRIDFXWH0,WURS3:1LQWURSRQLQ3:1V

    WKHFRPSHWLWLRQSZQLVLQWHUQHWVODQJIRUGRPLQDWLQJWKHFRPSHWLWLRQKWWSZZZXUEDQGLFWLRQDU\FRPGHILQHSKS"WHUP SZQ

    6SHFLILFDOO\LWULVHVILUVWDIWHUKRXUVDQGLVPRUHVSHFLILFWKDQRWKHUPDUNHUV

    &DUGLRP\RSDWKLHV 'LODWHGFRQJHVWLYHFDUGLRP\RSDWK\

    $%&' $$OFRKRODEXVH %ZHW%HULEHUL &&R[VDFNLH%YLUXVP\RFDUGLWLVFKURQLF

    &RFDLQHXVH&KDJDVGLVHDVH ''R[RUXELFLQWR[LFLW\ $OVRKHPRFKURPDWRVLVSHULSDUWXPFDUGLRP\RSDWK\

    +\SHUWURSKLFFDUGLRP\RSDWK\$FRPPRQFDXVHRIVXGGHQGHDWKLQ\RXQJDWKOHWHV

  • 22[\JHQ 33RVLWLRQLQJVLWRQHGJHRIEHGSRROEORRGLQOHJV

    UDWKHUWKDQSXOPRQDU\YDVFXODWXUHLPSURYHVEUHDWKLQJ3UHVVRUVH[GREXWDPLQH

    %DFWHULDOHQGRFDUGLWLV 7ULFXVSLGYDOYHHQGRFDUGLWLVLVDVVRFLDWHGZLWK,9GUXJDEXVH

    'RQW7ULGUXJV 0RVWFRPPRQRUJDQLVPVKHUHDUH3VHXGRPRQDVVWDSK

    $XUHXV&DQGLGD3$&OLNH7XSDFZKRJRWKLJKRQGUXJVDOOWKHWLPH

    +$&(.RUJDQLVPVFDXVHFXOWXUHQHJDWLYHHQGRFDUGLWLV+DHPRSKLOXV$FWLQREDFLOOXV&DUGLREDFWHULXP(LFKHQHOOD.LQJHOOD

    6LJQV6[RIEDFWHULDOHQGRFDUGLWLV,JRWEDFWHULDOHQGRFDUGLWLV)520-$1(QRWHWKDW-$1(ZD\OHVLRQVDUHWKH-

    )HYHU5RWKHUVVSRWVURXQGZKLWHVSRWVRQWKH5HWLQDVXUURXQGHGE\KHPRUUKDJH2VOHUVQRGHVWHQGHUUDLVHGOHVLRQVRQILQJHURUWRHSDGVSLFWXUHWKHIDPRXVSK\VLFLDQVLUZLOOLDP2VOHUSDOSDWLQJDSDWLHQWZLWKKLVILQJHUSDGV0XUPXU-DQHZD\OHVLRQVVPDOOHU\WKHPDWRXVOHVLRQVRQSDOPRUVROH$QHPLD1DLOEHGKHPRUUKDJHVSOLQWHUKHPRUUKDJH(PEROL

    /LEPDQ6DFNV(QGRFDUGLWLV/6(:DUWOLNHVWHULOHYHJHWDWLRQVRQERWKVLGHVRIWKHYDOYHFDXVHGE\OXSXV6/(FDXVHV/6(

    5KHXPDWLFKHDUWGLVHDVH 5KHXPDWLFIHYHUFDXVHGE\6WUHSS\RJHQHVFDQFDXVHD

    SDUWLFXODUW\SHRIKHDUWGLVHDVH5KHXPDWLFIHYHURFFXUVGXHWRLPPXQHUHVSRQVHWR6WUHSS\RJHQHVW\SH,,K\SHUVHQVLWLYLW\

  • 5HPHPEHUWKHKHDUWGLVHDVHVLJQVV\PSWRPVXVLQJ)(9(566OLNHUKHXPDWLF)(9(5

    )HYHU(U\WKHPDPDUJLQDWXPVHUSLJLQRXVVNLQUDVKODUJHULQJVFRPHDQGJRLQKRXUV9DOYXODUGDPDJHYHJHWDWLRQDQGILEURVLV(65LQFUHDVH5HGKRWMRLQWVPLJUDWRU\SRO\DUWKULWLV6XEFXWDQHRXVQRGXOHVWKHVHDUHWKH$VFKRIIERGLHVZKLFKDUHSDWKRJQRPRQLFRQKLVWRORJ\6W9LWXVGDQFHFKRUHD

    $OWHUQDWLYHO\WKH-21(6FULWHULD -RLQWVPLJUDWRU\SRO\DUWKULWLV2SDQFDUGLWLV

    HQGRFDUGLWLVP\RFDUGLWLVSHULFDUGLWLV1RGXOHV(U\WKHPDPDUJLQDWXP6\GHQKDPVFKRUHD

    3LFWXUHWKH2FKDQJHGLQVKDSHDELWWREHFRPHDKHDUW

    &DUGLDFWXPRUV 7KHPRVWFRPPRQSULPDU\WXPRUVLQ$'8/76LVP\;RPD

    $'8/7PDWHULDOLVUDWHG;;;OLNHWKHDGXOWP\;;;RPDWKLVW\SHRISRUQRJUDSKLFDGXOWFRQWHQWPDNHVWKH+($57SRXQG

    7XPRULVGHVFULEHGDVD%$//YDOYHDFWVOLNHDYDOYHORRNVOLNHDELJEDOO

  • %XHUJHUVGLVHDVHVHHQLQKHDY\VPRNHUV3LFWXUHRIVPRNLQJKRWSLHFHRIKDPEXUJHUPHDWRQWKHJULOO

    $OWHUQDWLYHO\0RVWRIP\IULHQGVEDFNDWKRPHVPRNHDQGZHOLNHWRJRWR-DFNLQWKH%R[IRUEXHUJHUVODWHQLJKWDIWHUJRLQJRXWDQGLWVXVXDOO\FROGE\WKDWWLPH5D\QDXGVSKHQRPHQRQ

    .DZDVDNLGLVHDVH6HHQLQFKLOGUHQ\RXZRXOGKDYHWREHDOLWWOHSXVV\DVVEDE\FKLOGWRULGHD.DZDVDNLPRWRUF\FOHLQVWHDGRID+DUOH\'DYLGVRQ

    $VVRFLDWHGZLWK$VLDQHWKQLFLW\.DZDVDNLVRXQGVDOO$VLDQ 6WUDZEHUU\WRQJXH

  • $UWKULWLV1LJKWVZHDWV0
  • 1LIHGLSLQHLVDGLK\GURSHULGLQHZKHUHDVYHUDSDPLODQGGLOWLD]HPDUHQRQGLK\GURSHULGLQHV7KH1LLVWKH'L

    0DOLJQDQWK\SHUWHQVLRQWUHDWPHQW 'UXJVLQFOXGH)HQROGRSDP'LD]R[LGH1,7URSUXVVLGH

  • (QFDLQLGH)RU3XVKLQJ(FVWDF\ 4XLQLGLQHFDXVHVFLQFKRQLVP7KDWJLUO4XLQLVDWRWDO

    VOXWIXFNLQJKHULVD&LQFK ,%LV%HVWSRVW0,,&LV&RQWUDLQGLFDWHGSRVW0,

    &ODVV%HWDEORFNHUVDOOHQGLQRORO &DXVHVLPSRWHQFH%HWD%ORFNV\RXU%RQHU

    &ODVV.FKDQQHOEORFNHUV &ODVVZRUNVDWSKDVH DP,2'DURQHFRQWDLQV,2'LQH7KXVORJLFDOO\LWFDQPHVV

    ZLWKWKHWK\URLGJODQGFDXVHVK\SRRUK\SHUWK\URLGLVP $OVRFDXVHVSXOPRQDU\ILEURVLVKHSDWRWR[LFLW\

    :LWKDPLRGDUDRQHFKHFN3)7V/)7VDQG7)7V $0LRGDURQHLVOLNHWKHPRUQLQJ$0

  • RQWKHSHULSKHU\RIWKHLVOHWGHOWDFHOOVIRUVRPDWRVWDWLQDWWKHMXQFWLRQEHWZHHQWKHWZR

    ,QVXOLQ %5,&./RUJDQVGRQWQHHGLQVXOLQIRUJOXFRVHXSWDNH%

    %UDLQ55%&V,,QWHVWLQH&&RUQHD..LGQH\//LYHU */87LV%,GLUHFWLRQDODQGWKXVQRWXVHGE\WLVVXHVWKDW

    5($//

  • 7KH21/
  • (SLQHSKULQHFRQYHUWHGWRPHWDQHSKULQH(DV\WRUHPHPEHU +\SHUSDUDWK\URLGLVP

    $GLVHDVHRI 6WRQHVVWRQHVGXHWRK\SHUFDOFLXULD %RQHVF\VWLFERQHVSDFHVILOOHGZLWKEURZQILEURXVWLVVXH *URDQVFRQVWLSDWLRQJDVWULFXOFHUVGXHWRLQFUHDVHG

    JDVWULQZKLFKRFFXUVGXHWRLQFUHDVHG&D +\SRSDUDWK\URLGLVP

    'XHWRK\SRFDOFHPLDDQGUHVXOWDQWWHWDQ\VHH&KYRVWHNVVLJQ7URXVVHDXVVLJQ

    &KYRVWHNVLJQ&KHHN7DSSLQJRIIDFLDOQFDXVHVFRQWUDFWLRQRIIDFLDOPP

    7URXVVHDXVVLJQ7LJKWLQWKHFXII2FFOXVLRQRIEUDFKLDODUWHU\ZLWK%3FXIIWULJJHUVFDUSDOVSDVP

    3LWXLWDU\DGHQRPD %URPRFULSWLQHRUFDEHUJROLQHGRSDPLQHDJRQLVWVFDXVH

    VKULQNDJHRISURODFWLQRPDV :KHQ,WKLQNSURODFWLQ,WKLQNWLWV:KHQ,WKLQNWLWV,WKLQN

    JLUOV3LFWXUHDVORSS\GUXQNJLUODQGWRWUHDWLW\RXDUHOLNH%URFDOOKHUWLWVD&DE

    &DUFLQRLGV\QGURPH+LJKOHYHOVRIVHULWRQLQ ,QFUHDVHV+,$$LQXULQH3HRSOHRQHFVWDF\LQFUHDVHV

    VHULWRQLQDUHH[WUHPHO\VRFLDODOZD\VOLNH+,$$+RZDUH\RX/HWVEHEHVWIULHQGV,ORYH\RX

    5XOHRIVPHWDVWDVL]HSUHVHQWZLWKQGPDOLJQDQF\PXOWLSOH

    0XOWLSOHHQGRFULQHQHRSODVLD0(1 $XWRVRPDOGRPLQDQWEHFDXVH0(1DUHGRPLQDQW 0HGXOODU\WK\URLGFDUFLQRPDDQG3KHRDUHVHHQLQERWK$DQG

    %0HGLFDOVFKRROLVFUD]\H[SHQVLYHVRWKH0HG3KHIHHLVQRWWKHORZHU

    0(13V0(1VRFDUU\MXVWRYHU3DUDWK\URLG

  • 3DUDWK\URLGWXPRUV 3LWXLWDU\WXPRUVSURODFWLQRU*+ 3DQFUHDWLFHQGRFULQHWXPRUV=ROOLQJHU(OOLVRQLQVXOLQRPD

    9,3RPDUDUHO\JOXFDJRQRPD 0(1$3V0(1VRFDUU\RYHU3KHR0HGXOODU\

    3DUDWK\URLGWXPRUV 3KHRFKURPRF\WRPD 0HGXOODU\WK\URLGFDUFLQRPD

    0(1%3 3KHRFKURPRF\WRPD 0HGXOODU\WK\URLGFDUFLQRPD 2UDOLQWHVWLQDOJDQJOLRQHXURPDWRVLVDVVRFLDWHGZLWK

    PDUIDQRLGKDELWXVPXFRVDOQHXURPDV 3KDUPDFRORJ\

    'LDEHWHVGUXJV 3LRJOLWD]RQHDOVRURVLJOLWD]RQHFDXVHVZHLJKWJDLQ3LJ

    JOLWD]RQH 3LFWXUHDIDWSLJOLNHURV\IDFHGJROIHU8VHWKLVWRUHPHPEHU

    WKDWSLRJOLWD]RQHDQGURVLJOLWD]LQHELQG33$5JDPPDSDUOLNHJROI

    JOLWD]RQHVJOLWWHURQ\RXUOLYHUKHSDWRWR[LFLW\ ,QVXOLQW\SHV

    )DVWDFWLQJ$VSDUWSLFWXUHDQDVVVKDNLQJDOOIDVW/LVSURSLFWXUHVRPHRQHZLWKDOLVSWDONLQJDOOIDVW

    /RQJDFWLQJ 'HWHPLUOLNHGHEWZKLFK\RXDUHJRLQJWRKDYH

    )8&.,1*)25(9(5EHFDXVHRIPHGLFDOVFKRROYHU\ORQJDFWLQJ

    *ODUJLQH-XVWSKRQHWLFDOO\VRXQGVDOOWKLFNDQGVORZ

    ,QWHUPHGLDWHDFWLQJ13+OLNH1HLO3DWULFN+DUULVDOVRUHJXODULQVXOLQ,QWHUPHGLDWHOHYHORIFHOHEULW\

  • 0LJOLWRO,QKLELWVLQWHVWLQDOEUXVKERUGHUDOSKDJOXFRVLGDVHV$WLQ\OLWWOHPLJHWGRHVQWQHHGYHU\PXFKVXJDUPD\DVZHOOEORFNEUXVKERUGHUHQ]\PHVGHFUHDVHVXJDULQWDNH

    2WKHUHQGRFULQHGUXJV 'HPHFORF\FOLQH$'+DQWDJRQLVWXVHGLQWKHWUHDWPHQWRI

    6,$'+'HPHLVD'HPRQ$'+LVDQ$QJHOWKHGHPRQDQWDJRQL]HVWKHDQJHO

    ,QVXOLQLVDQDEROLFPDNHV\RXIDWGLD]R[LGHGHFUHDVHVLQVXOLQUHOHDVHE\NHHSLQJWKH.FKDQQHORSHQ'LDWR[LGHGLHW

    *DVWURLQWHVWLQDO $QDWRP\

    5HWURSHULWRQHDOVWUXFWXUHV 0RVWRISDQFUHDVLVUHWURSHULWRQHDOEXWQRWWDLO3LFWXUHGRJWDLO

    ZDJJLQJDURXQGFDQQRWEHFRQVWULFWHGWRUHWURSHULWRQHXP ,PSRUWDQW*,OLJDPHQWV

    +HSDWRGXRGHQDOGRHVQRWFRQWDLQD'82DWDOOEXWD75,23RUWDOWULDGSRUWDOYHLQFRPPRQELOHGXFWKHSDWLFDUWHU\FDQUHPHPEHUSRUWDODVSHFWIURPKHSDWR

    *DVWUR&2OLFOLJDPHQWFRQWDLQVJDVWURHSL3/2LFDUWHULHV

    'LJHVWLYHWUDFWDQDWRP\ 0HLVVQHUVVXEPXFRVDOUHJXODWLQJVHFUHWLRQV 0XVFXODULVH[WHUQD,QFOXGHV0\HQWHULFSOH[XV$XHUEDFKV

    /LIWZHLJKWVZLWK0XVFOHVIRUDQ$XHU7KLVPXVFOHSOH[XVKDQGOHVPRWLOLW\ZKLFKLVORJLFDOPXVFOHWKHRWKHUSOH[XVVXEPXFRVDORU0HLVVQHUVUHJXODWHVVHFUHWLRQVEORRGIORZDEVRUSWLRQ

    5HODWLYHSHULVWDOVLVIUHTXHQF\ZRUNVDOSKDEHWLFDOO\'XRGHQXP

  • ILUVWOHWWHULVIDVWHVWZDYHVPLQ!,OHXPZDYHVPLQ!6WRPDFKZDYHVPLQ

    $EGRPLQDODRUWDDQGEUDQFKHV &DQUHPHPEHUOHYHOVE\XVLQJWKHIDFWWKDWWKHUHLVRQHNH\

    VWUXFWXUHDWHDFKOHYHOVWDUWLQJZLWKWKHFHOLDFWUXQNDW7FHOLDFWUXQN6($/LDFWUXQNN6($/DIULHQGRIPLQHSUREDEO\QRWXVHIXOWRRWKHUVKLVIDYRULWHPRYLHVDUH7HUPLQDWRUDQG7

    7&HOLDFWUXQN /6XSHULRUPHVHQWHULFYHU\ORJLFDOO\IROORZVFHOLDF

    /LVWKHRQO\RQHZLWKWZRVWUXFWXUHVOLVWHGLQ)LUVW$LGLW/LHVDERXWKDYLQJ

    /HIWUHQDOUHQDODUWHULHVDUHEHWZHHQ//EXW)$VD\VOHIWUHQDODVSHFLILFDOO\LVDW/

    /7HVWLFXODURYDULDQDQGZHKDYH7:2WHVWLFOHVRURYDULHV

    /,QIHULRUPHVHQWHULF,QIHULRULQWKDWLWGRHVQWQLFHO\IROORZVXSHULRUPHVHQWHULFLQWKHZD\WKDWVXSHULRUPHVHQWHULFIROORZVFHOLDF

    /%LIXUFDWLRQRIDEGRPLQDODRUWD *,EORRGVXSSO\DQGLQQHUYDWLRQ

    )RUHJXWDQGPLGJXWDUHVXSSOLHGE\YDJXVKLQGJXWOLNHWKHEXWWKROHLVVXSSOLHGE\SHOYLFQWKLQNDQDOVH[

    3RUWDOFLUFXODWLRQ6/,36\RXQHHG6/,366OLNHDSDVVWRJHWWKURXJKWKHSRUWDO

    6XSHULRUPHVHQWHULF /JDVWULF ,QIHULRUPHVHQWHULF 3DUDXPELOLFDO 6SOHQLF 6XSHULRUUHFWDO

  • 3RUWRV\VWHPLFDQDVWRPRVHV 3RUWDO+719DULFHVRIJXWEXWWDQGFDSXW

    *XW/HIWJDVWULFYFRQQHFWVWRHVRSKDJHDOY(VRSKDJHDOYDULFHVFDQUXSWXUHDQGNLOOYLDPDVVLYHKHPRUUKDJH

    %XWW6XSHULRUUHFWDOYFRQQHFWVWRPLGGOHLQIHULRUUHFWDOYY,QWHUQDOKHPRUUKRLGV

    &DSXW3DUDXPELOLFDOYFRQQHFWVWRVXSHUILFLDODQGLQIHULRUHSLJDVWULFYY&DSXWPHGXVDH

    2UGHURIWKLQJVLQ)HPRUDO7ULDQJOH1$9(/ODWHUDOWRPHGLDO 1HUYH$UWHU\9HLQ(PSW\/\PSKDWLF 9HLQRXVQHDUWKH3HQLV 7KH1HUYHLV1RWLQWKHIHPRUDOVKHDWK

    +HUQLDV ,1GLUHFWKHUQLD*RHVWKURXJKWKH,1WHUQDOGHHSLQJXLQDO

    ULQJDQG,1WRWKHVFURWXPDQGRFFXUVLQ,1IDQWVGXHWRIDLOXUHRISURFHVVXVYDJLQDOLVWRFORVHFDQIRUPK\GURFHOH

    EFLWJRHVLQWRWKHVFURWXPWKLVLVDOVRWKHSDWKIRUWHVWHVGHVFHQW

    /RFDWLRQRIKHUQLDV/RQJ,VODQG0'/,0'RUDOWHUQDWLYHO\0'VGRQW/,H

    /DWHUDOWRLQIHULRUHSLJDVWULFD ,QGLUHFWKHUQLD 0HGLDOWRLQIHULRUHSLJDVWULFD 'LUHFWKHUQLD

    )(0RUDOKHUQLD)(0LQLQH0RUHFRPPRQLQZRPHQ &DQUHPHPEHUWKDWWKLVLVWKHRQO\KHUQLD%(/2:WKH

    LQJXLQDOOLJDPHQWEHFDXVHWKHIHPRUDODUWHU\LVFUHDWHGDVWKHH[WHUQDOLOLDFDUWHU\SDVVHVWKHLQJXLQDOOLJDPHQW

    3K\VLRORJ\ *,KRUPRQHV

    *KUHOLQPDNHVKXQJU\,PDJLQHGHOLFLRXVVWHDNVDQGKDPEXUJHUV*+5LOOLQRQD%%4VPHOOPDNHVKXQJU\

    6HFUHWLQ6(&5(7LQ,QFUHDVHVWKHUHOHDVHRIEDVHELFDUE,WLVD6(&5(7WKDW,VPRNHVRPXFKIUHH%$6(IUHHEDVH VODQJIRUFUDFN

  • &KROHF\VWRNLQLQ&KROHPHDQVELOHF\VWRPHDQVJDOOEODGGHU

    JHQHUDOWHUPIRUEODGGHUVDFNLQLQLPSOLHVNLQHWLFJRLQJLQFUHDVHG7KLVLQFUHDVHVSDQFUHDWLFDQGJDOOEODGGHUVHFUHWLRQ

    &KROHF\VWRN,QLQ+DVDVWURQJ,SKRQHWLFDOO\6HFUHWHGIURP,FHOOV

    6RPDWRVWDWLQ6DLGWRVKXWGRZQHYHU\WKLQJGHFUHDVHVJDVWULFDFLGDQGSHSVLQRJHQVHFUHWLRQGHFUHDVHVSDQFUHDWLFDQGVPDOOLQWHVWLQHIOXLGVHFUHWLRQGHFUHDVHVJDOOEODGGHUFRQWUDFWLRQGHFUHDVHVLQVXOLQDQGJOXFDJRQUHOHDVHVWDWLQLPSOLHVVWDWLFWXUQLQJWKLQJVRII

    'XRGHQXPKDV.FHOOV,FHOOV6FHOOV.,6VWKHGXRGHQXPDVLWORRNVVRUWRISKDOOLF

    .5HOHDVHV*,3 ,5HOHDVHV&&. 65HOHDVHVVHFUHWLQ

    6DOLYDU\VHFUHWLRQ 3DURWLGVUHOHDVHPRVWVHURXVVXEVWDQFHVXEOLQJXDOUHOHDVHPRVW

    PXFLQRXVVXEVWDQFH6HURXVRQWKH6LGHVSDURWLGV0XFLQRXVLQWKH0LGGOHVXEOLQJXDOVXEPDQGLEXODULVVRPHZKHUHEHWZHHQWKHWZR

    1XWULHQWDEVRUSWLRQ )UXFWRVHLVWDNHQXSE\)DFLOLWDWHGGLIIXVLRQE\*/87XQOLNH

    JOXFRVHDQGJDODFWRVHZKLFKXQGHUJRFRWUDQVSRUWZLWK1DYLDWKH6*/7

    %UHTXLUHV,QWULQVLFIDFWRUHDV\WRUHPHPEHUDQGLVDEVRUEHGLQWKH,OHXPPRUHRIDELWFKWRUHPHPEHU

    )RODWHLVDEVRUEHGLQWKHMHMXQXP-HZLVKSHRSOHDUHRXUIRHVGLVFODLPHU,DP-HZLVKWKLVLVMXVWDPHPRU\WRRO

    %LOLUXELQ

  • ,QGLUHFWXQFRQMXJDWHG%RWKKDYHSUHIL[HVLQXQZKHUHDVGLUHFWFRQMXJDWHGJRWRJHWKHUDQGGRQRWKDYHSUHIL[HV

    3DWKRORJ\ 6DOLYDU\JODQGWXPRUV

    0&0DOLJQDQWVDOLYDU\WXPRU 0XFRHSLGHUPRLG 0DOORU\:HLVV/DFHUDWLRQVDW*(MXQFWLRQGXHWRVHYHUHYRPLWLQJFDQ

    EHIURPDOFRKROLVPEXOOHPLD ,MXVWLPDJLQHVRPHGUXQNEXOLPLFJLUOQDPHG0DOORU\:HLVV

    %RHUKDDYHV\QGURPH7UDQVPXUDOHVRSKDJHDOUXSWXUHIURPUHWFKLQJ%HHQ+HDYLQJ

    (VRSKDJHDO675,&7XUHV&DQEHFDXVHGE\O\HLQJHVWLRQ,I\RXKDYH675,&7SDUHQWV\RXJHWLQWURXEOHIRUO\HLQJ

    3OXPPHU9LQVRQ6\QGURPH 0QHPRQLFV

    )RUPHUHUDQGUDGLRFRPPHQWDWRU*DU\3OXPPHUZDVUHFHQWO\ILUHGIRUWKLVKWWSGHDGVSLQFRPH[HUVFRORUDQDO\VWSRVVLEO\ILUHGIRUUDXQFK\ODELDORYLQWDONZLWKQVIZDXGLRDJUHDWOLVWHQLI\RXUHERUHG7/'/KHZDVDNLQJRIFXQQLOLQJXVKHQFHWKHJORVVLWLVDQGHVRSKDJHDOZHEVDQGLIKHZDVGRLQJWKDWDOOGD\KLVGLHWSUREDEO\ZDVQWWRRJRRGKHQFHWKH)HGHILFLHQWDQHPLD

    HVRSKDJHDOZHEV *ORVVLWLV )HGHILFLHQWDQHPLD

    $OWHUQDWLYHPQHPRQLF 3OXPPHU9LQVRQV\QGURPH7KLQNDSOXPEHU

    '\VSKDJLD%HFDXVHWKHSOXPEHULVDURXQGSRRSDOOWKHWLPHKDUGWRHDWLQGLVHDVHLWLVEHFDXVHRIHVRSKDJHDOZHEV

    *ORVVLWLV7RLOHWLVVKLQ\DQG*/266\ ,URQGHILFLHQF\DQHPLD3OXPEHUDFFLGHQWDOO\

    IOXVKHGLURQWRRO 5LVNIDFWRUVIRUHVRSKDJHDOFDQFHU$+

    $FKDODVLD %DUUHWWV &LJV 'LYHUWLFXOL (VRSKDJHDOZHEV(VRSKDJLWLV )DPLOLDO *(5' +RW'RJVQLWURVDPLQHV

    0DODEVRUSWLRQV\QGURPHV7KHVH:LOO&DXVH'HYDVWDWLQJ$EVRUSWLRQ3UREOHPV

  • 7URSLFDOVSUXH7DLOVIROORZVFHOLDFVSUXHVLPLODUWRFHOLDFVSUXH

    :KLSSOHVGLVHDVH%DVHGRQJUDPSRVLWLYHEDFWHULDOLQIHFWLRQ:KLS&$1FDQLVROGVFKRROVODQJIRUDVV&DUGLDFSUREOHPV$UWKUDOJLDV1HXURORJLFDOSUREOHPV

    :KLS3$6GLVHDVH3$6PDFURSKDJHVWKLVLVWKHRQO\EDFWHULDWKDWZLOOUHVXOWLQ3$6

    &HOLDFVSUXH 'LVDFFKDULGDVHGHILFLHQF\ $EHWDOLSRSURWHLQHPLD'HFUHDVHGDSR% 3DQFUHDWLFLQVXIILFLHQF\

    *DVWULWLV $FXWHJDVWULWLV

    &XUOLQJVXOFHU*DVWULWLVGXHWRDEXUQGHFUHDVHGSODVPDYROXPHFDXVHVVORXJKLQJRIJDVWULFPXFRVD%XUQWKHVWRPDFKZLWKD&XUOLQJLURQ

    &XVKLQJVXOFHU%UDLQLQMXU\FDXVHVLQFUHDVHGYDJDOVWLPXODWLRQWKXVLQFUHDVHG$&KWKXVLQFUHDVHG+SURGXFWLRQWKXVXOFHU$OZD\V&86+LRQWKHEUDLQ

    $OWHUQDWLYHO\&XVKLQJZDVDIDPRXVEUDLQVXUJHRQKWWSHQZLNLSHGLDRUJZLNL+DUYH\B:LOOLDPVB&XVKLQJ

    &KURQLF*DVWULWLV 7\SH$IXQGXVERG\IRXQGDERYHW\SH%DQWUXP

    EHFDXVH$FRPHVEHIRUH% 7\SH$$XWRLPPXQH$XWRDQWLERGLHVWRSDULHWDOFHOOV

    SHUQLFLRXV$QHPLD$FKORUK\GULD 7\SH%&DXVHGE\+S\ORULLQIHFWLRQPRVWFRPPRQD

    %DFWHULXP $%SDULQJ

    7\SH$3HUQLFLRXV$QHPLDDIIHFWVJDVWULF%RG\ 7\SH%%DFWHULXPDIIHFWV$QWUXP

    0HQHWULHUV'LVHDVH6WRPDFKUXJDHORRNVOLNHEUDLQRUOLNH0(1LQJHVGXHWRWKHIDFWWKDWWKH\DUHVXSHUK\SHUWURSKLHG

    *DVWULF8OFHUYV'XRGHQDO8OFHU *DVWULF3DLQLV*UHDWHUZLWKPHDOVUHVXOWVLQZHLJKWORVV 'XRGHQDO3DLQLV'HFUHDVHGZLWKPHDOVUHVXOWVLQZHLJKWJDLQ

    ,QIODPPDWRU\ERZHOGLVHDVH )URP)$)RU&URKQVWKLQNRIDIDWJUDQQ\DQGDQROGFURQH

    VNLSSLQJGRZQDFREEOHVWRQHURDGDZD\IURPWKHZUHFNUHFWDOVSDULQJ

    )DW&UHHSLQJIDW *UDQQ\1RQFDVHDWLQJJUDQXORPD 6NLSSLQJ6NLSOHVLRQV

  • &REEOHVWRQH&REEOHVWRQHPXFRVD $ZD\IURPZUHFN5HFWDOVSDULQJ

    7KHRWKHUW\SHRI,%'LVXOFHUDWLYHFROLWLV$OZD\VZLWKUHFWDOLQYROYHPHQWLVLPSOLHGE\FROLWLVVWDUWVZLWKUHFWXPDQGZRUNVLWVZD\XS

    =HQNHUVGLYHUWLFXOXPa6WLQNHUVGLYHUWLFXOXPSUHVHQWVZKDOLWRVLVIRRGJHWWLQJWUDSSHGLQWKHGLYHUWLFXOXPFDXVLQJEDGEUHDWK

    0HFNHOVGLYHUWLFXOXP7KHILYHV LQFKHVORQJIHHWIURPLOHRFHFDOYDOYHRISRSXODWLRQ

    FRPPRQO\SUHVHQWVLQILUVW\HDUVRIOLIHPD\KDYHW\SHVRIHSLWKHOLDJDVWULFSDQFUHDWLF

    +LUVFKVSUXQJVGLVHDVH0HJDFRORQGXHWRODFNRIJDQJOLRQFHOOVHQWHULFQHUYHSOH[XVHVLQDVHJPHQWRILQWHVWLQH7KLQNRIDJLDQWVSULQJWKDWKDVVSUXQJLQWKHFRORQPDNLQJLWODUJH

    &RORQLFSRO\SV 7KHPRUHYLOORXVWKHSRO\SWKHPRUHOLNHO\LWLVWREHPDOLJQDQW

    9,//286 9,//DLQ286 3HXW]-HJKHUVV\QGURPH

    3RRWLVVODQJIRUIDUWLQJKWWSZZZXUEDQGLFWLRQDU\FRPGHILQHSKS"WHUP SRRW

    2QO\ELJGRPLQDQWPHQIDUW$XWRVRPDOGRPLQDQW &DQDVVRFLDWHIDUWLQJZLWK*,WUDFW0XOWLSOHQRQPDOLJQDQW

    KDPDUWRPDVWKURXJKRXW*,WUDFW ,QFUHDVHGULVNRI&5&RWKHUYLVFHUDOPDOLJQDQFLHVIRU

    HYHU\IDUWWKHUHLVDVLJQLILFDQWULVNWKDWLWZLOOEHDQDZIXOPDOLJQDQWRQH

    +\SHUSLJPHQWHGPRXWKOLSVKDQGVJHQLWDOLD0HQWKDWIDUWDUHSLJV

    &RORUHFWDOFDQFHU )$3LVEDVHGRQDXWRVRPDOGRPLQDQWPXWDWLRQRQFKURPRVRPH

    T

  • )$3RVVHRXVVRIWWLVVXHPDVVHVUHWLQDOK\SHUSODVLD*DUGQHUVJURZLQJVKLWHYHU\ZKHUH

    7XUFRWVV\QGURPH )$3PDOLJQDQW&16WXPRU785EDQDURXQGWKHKHDG

    &DUFLQRLGWXPRU 0D\KDYHFDUFLQRLGV\QGURPHVHFRQGDU\WR+7SURGXFWLRQIURP

    WKHQHRSODVP21/

  • +HPRFKURPDWRVLV&DQ&DXVH'HSRVLWV&LUUKRVLV&+)'LDEHWHVPHOOLWXV

    &DXVHVRIDFXWHSDQFUHDWLWLV*(760$6+(' **DOOVWRQHV ((WKDQRO 77UDXPD 66WHURLGV 00XPSV $$XWRLPPXQHGLVHDVHV 66FRUSLRQVWLQJ ++\SHUFDOFHPLD+\SHUOLSLGHPLD ((5&3 ''UXJVHJVXOIDGUXJV

    $QDOILVVXUHVPRUHFRPPRQSRVWHULRUO\RXUDQXVLVSRVWHULRU 5)VIRU*DOOVWRQHV)DW)HPDOH)RUW\)HUWLOH 3RUFHODLQ*DOO%ODGGHU*DOOEODGGHUZG\VWURSKLFFDOFLILFDWLRQ

    3RUFHODLQLVZKLWHOLNHWKHFDOFLILFDWLRQ 7KHVHSDWLHQWVDUHDWULVNIRUJDOOEODGGHUFDQFHU

    3KDUPDFRORJ\ +EORFNHUV

    7DNH+EORFNHUVEHIRUH\RX',1($OOHQGLQGLQHFLPHWL',1(UDQLWL',1(IDPRWL',1(QL]DWL',1(

    5HPHPEHUWKHLQ+ZLWKWDEOHIRU KHDGVXSWKDW+EORFNHUVXVHGIRUDOOHUJ\LQUHVSLUDWRU\

    VHFWLRQDOVRHQGLQGLQH 5DQLWLGLQHDQG&LPHWLGLQHGHFUHDVHWKHUHQDOH[FUHWLRQRI

    FUHDWLQLQH,5DQWKH&LPXODWLRQDOOGD\DQG,ZDVVREXV\,FRXOGQWSHH

    7ULSOHWKHUDS\8VHV3URWRQSXPSLQKLELWRU0HWURQLGD]ROH$PR[LFLOOLQRU7HWUDF\FOLQH%LVPXWK3OHDVH0$NH7XPP\%HWWHU

    %LVPXWK%LQGVWRXOFHUEDVHSURYLGLQJSK\VLFDOSURWHFWLRQ%LVPXWKJHWVDOOXSLQWKHXOFHUV%LVQHVV

    %LVPXWKDQGVXFUDOIDWHGRWKHVDPHWKLQJWROLQNWKHPXVH%LVH[XDOSHRSOHVXFNRQSHQLV

    $OWHUQDWLYH\RXZDQWWRVXIIRFDWHa6XFUDOIDWHWKDWELWFKa%LVPXWKRIDQXOFHU

    0LVRSURVWRO$3*(DQDORJ0LVR3526WROVLPLODUWRDSURVWDJODQGLQ

    $QWDFLGV $OXPLQLQXPK\GUR[LGHRYHUXVHFDXVHVFRQVWLSDWLRQRUD

    0,1,080DPWRIIHFHV &DXVHVHL]XUHVRVWHRG\VWURSK\$OEHUW$KDVD

    VSDVPRGLFVHL]XUHPDQ\WLPHVHDFKGD\ZKHQKHPDVWXUEDWHVDQGHMDFXODWHVKHZRUNVKLVDUPVRKDUGKH

  • GHYHORSVRVWHRG\VWURSK\ 0DJQHVLXPK\GUR[LGHRYHUXVHFDXVHVGLDUUKHDRUD

    0$*6,080DPRXQWRIIHFHVDOVR0JIRU0XVW*RWRWKHEDWKURRP

    6XOIDVDOD]LQH &DXVHVUHYHUVLEOHROLJRVSHUPLD,I\RXDUHVXFKDSXVV\\RXDUH

    HDWLQJVDODG\RXZLOOH[SHULHQFHROLJRVSHUPLD $OWHUQDWLYHO\$/PDVWXUEDWHVDOOWKHWLPHDQGORVHVDOORIKLV

    VSHUP 2QGDQVHWURQ$+7DQWDJRQLVWVLQFHVHULWRQLQV\QGURPHLVEDVHG

    RQORWVRI+7DQGFDXVHVGLDUUKHDLWLVHDV\WRUHPHPEHUWKDWDVLGHRIWKLVGUXJLVFRQVWLSDWLRQ

    ,WVIXQFWLRQLVWRFRQWUROYRPLWLQJSRVWRSHUDWLYHO\DQGLQFKHPRSDWLHQWV:LWK2Q'DQFHHWURQ\RXFDQJR21'$1&LQJEHFDXVH\RXZLOOQRWYRPLW

    (DV\WRFRQQHFWGDQVHHWURQWRVHULWRQLQGXHWRWKHIDFWWKDWSHRSOHKLJKRQHFVWDV\ZKLFKLQFUHDVHVVHULWRQLQGDQFHDOOWKHWLPH

    0HWRFORSUDPLGH 8VHGWRWUHDWGLDEHWLFDQGSRVWVXUJHU\JDVWURSDUHVLV(YHU\RQH

    HOVHLVSRRSLQJLWVRQO\IDLUWKDW,JHWWRSRRSWRRPHWRR &ORSEORFNVWKHGRSH'UHFHSWRUDQWDJRQLVW

    +HPDWRORJ\DQG2QFRORJ\ 3K\VLRORJ\

    :%&GLIIHUHQWLDOIURPKLJKHVWWRORZHVW1HXWURSKLOV/\PSKRF\WHV0RQRF\WHV(RVLQRSKLOV%DVRSKLOV1HXWURSKLOV/LNH0DNLQJ(YHU\WKLQJ%HWWHU

    (RVLQRSKLOLD'1$$$&3 'UXJV 1HRSODVPV

  • $WRSLFGLVHDVHDVWKPDDOOHUJLHV $GGLVRQV $FXWH,QWHUVWLWLDO1HSKULWLV &ROODJHQ9DVFXODU'LVHDVH 3DUDVLWHVLQYDVLYH

    +HPRSKLOLD$DQG% +HPRSKLOLD$LVDGHILFLHQF\RIIDFWRU$WHZRUGFRPELQHV

    WKHWZR +HPRSKLOLD%LVGHILFLHQF\RIIDFWRU%HQLJQ%

    7KHLQWULQVLFDQGH[WULQVLFSDWKZD\VPHHWDWIDFWRU;DQGDFWLYDWHLW/LNHWZRWHDPVUDFLQJIRUDWUHDVXUH;PDUNVWKHVSRW

    37FRPHVEHIRUH377DOSKDEHWLFDOO\H[WULQVLFFRPHVEHIRUHLQWULQVLFDOSKDEHWLFDOO\WKXV37JRHVZLWKH[WULQVLF377JRHVZLWKLQWULQVLF

    &RDJXODWLRQFDVFDGHFRPSRQHQWV 9LWDPLQ.LVQHHGHGWRV\QWKHVL]H$1'SURWHLQ&6

    WZRWKLQJV +HSDULQDFWLYDWHVDQWLWKURPELQZKLFKLQDFWLYDWHV$1'

    WZRWKLQJV 5HPHPEHULQJWKHLQWULQVLFH[WULQVLFIDFWRUV

    WKURPELQDQGDUHLQERWKH[WULQVLFDQGLQWULQVLFSDWKZD\VUHPHPEHUWKDWWKH\FRQYHUJHDWZKLFKDFWLYDWHV

    37([WULQVLF)HZHUOHWWHUVLQ376PDOOHUQXPEHUVLQIDFWRUV

    377,QWULQVLF0RUHOHWWHUVLQ377+LJKHUQXPEHUVLQIDFWRUV

    3DWKRORJ\ %DVRSKLOLFVWLSSOLQJ%DVWHWKHR[7$,/&DXVHGE\7KDODVVHPLDV

    $QHPLDRIFKURQLFGLVHDVH,URQGHILFLHQF\/HDGSRLVRQLQJ $OWHUQDWLYHO\'RQW6WLSRQP\7$,/

    3DWKRORJLF5%&IRUPV &DXVHVRIWDUJHWFHOOV+$/7VDLGWKHKXQWHUWRKLVWDUJHW

    +E&GLVHDVH$VSOHQLD/LYHUGLVHDVH7KDOODVHPLD &DQDOVRUHDUUDQJHWR7+$/WREHWWHUUHPHPEHU

    7KDODVVHPLD +E%DUWV$OOJDPPDJDPPDRUDOOIHWDO/LNH%DUW6LPSVRQZKR

    LVDFKLOG &DQUHPHPEHUJDPPDFKDLQVEF%DUWVGDGZRUNVDWDQXFOHDU

    SRZHUSODQW /HDGSRLVRQLQJ

    /($'/HDGOLQHVRQJLQJLYDH%XUWRQVOLQHVDQGRQHSLSK\VHVRIORQJERQHVRQ[UD\(QFHSKDORSDWK\DQG(U\WKURF\WHEDVRSKLOLFVWLSSOLQJ$EGRPLQDOFROLFDQGVLGHUREODVWLF$QHPLD'URSVIRRWDQGZULVW'LPHUFDSURODQG('7$VWOLQHRI

  • WUHDWPHQW 6XFFLPHULVILUVWOLQHRIWUHDWPHQWIRUNLGV,WVXFNVWR

    EHDNLGZKRHDWVOHDG %GHILFLHQF\FDXVHVDOOVRUWVRIQHXURORJLFDOSUREOHPVZKHUHDVIRODWH

    GHILFLHQF\GRHVQRW%ORVVPHVVHVXSWKH%UDLQ 773YV+86YV',&

    773DQG+86DUHEDVLFDOO\WKHVDPHEXWQHXUDOLQYROYHPHQWLVVHHQLQ773ZKHUHDV+86VSDUHVWKH&16YDVFXODWXUH

    +86+HDG8QDIIHFWHG6\QGURPH 5HPHPEHUWKDW',&LVQRWOLNHWKHRWKHUVEHFDXVHQRRQHZDQWV

    WREHOLNHDGLFN 773LVPRUHIUHTXHQWLQ\RXQJZRPHQ77IRU77VWLWW\V

    $XWRLPPXQHKHPRO\WLFDQHPLD :DUPDJJOXWLQLQLV,J*:DUPZHDWKHULV***UHDW &ROGDJJOXWLQLQLV,J0&ROGLFHFUHDP000

    3RUSK\ULDV 3RUSK\ULDFXWDQHDWDUGD&DXVHGE\DGHIHFWLQ

    XURSRUSK\ULQRJHQGH[DUER[\ODVHJHWEXLOGXSRIXURSRUSK\ULQFDXVLQJWHDFRORUHGXULQH

    ,I\RXDUHUHWDUGDGRUDWDUG\RXDUHOLNHO\VRGXPEWKDWXUSRUDOVRSRRUSHRSOHFDQRQO\DIIRUGWHD

    $FXWHLQWHUPLWWHQWSRUSK\ULD'HIHFWLYHHQ]\PHLVSRUSKRELOLQRJHQGHDPLQDVHOHDGLQJWREXLOGXSRISRUSKRELOLQRJHQ

    3RUSKRELOLQRJHQ3RRU)2%OLNHIUHVKRIIWKHERDWIRE7KH\DUHKHUHDFXWHO\DQGLQWHUPLWWHQWO\EHFDXVHWKH\DUHGHSRUWHG

    &RDJXODWLRQGLVRUGHUV %HUQDUG6RXOLHUYV*ODQ]PDQQV

    %HUQDUGVFRPHVILUVWLQWKHDOSKDEHWVRLWDIIHFWV*S,E

  • FROODJHQELQGLQJVLWHIRUSODWHOHWZKLOH*ODQ]PDQQVDIIHFWV*S,,E,,,DSODWHOHWSODWHOHWELQGLQJVLWH

    +HPRO\WLF8UHPLF6\QGURPH+86 ,WKLQNRI*XVWKH5$7IURP&LQGHUHOOD5HQDOIDLOXUH

    $QHPLD7KURPERF\WRSHQLD

    'LVVHPLQDWHG,QWUDYDVFXODU&RDJXODWLRQ',& &DXVHGE\6HSVLVJUDPQHJDWLYH7UDXPD2EVWHWULF

    FRPSOLFDWLRQVDFXWH3DQFUHDWLWLV0DOLJQDQF\1HSKURWLFV\QGURPH7UDQVIXVLRQ67230DNLQJ1HZ7KURPEL

    ',&LVUHDOO\D',&NEHFDXVHQRWRQO\LVLWPDNLQJ\RXK\SHUFRDJXODEOH\RXDUHIRUPLQJWRQVRIWKURPELLWLVDOVRPDNLQJ\RXPRUHSURQHWREOHHGLQJFORWWLQJIDFWRUVDQGSODWHOHWVEHLQJXVHGXSVRFDQQRWUHVSRQGWRDFWXDOLQVXOWUHTXLULQJFORWWLQJ

    &ORWWLQJIDFWRUVDQGDUHFRQVXPHG&KDG2FKR&LQFRLVD',&N

    +RGJNLQVO\PSKRPDVXEW\SHV 1RGXODUVFOHURVLQJ0RUHFRPPRQLQIHPDOHV%UHDVWVFDQEH

    WKRXJKWRIDVQRGXOHV 1RQ+RGJNLQVO\PSKRPDVXEW\SHV

    0DQWOHFHOOO\PSKRPD&'0HQKLJKPRUHFRPPRQO\VWHUHRW\SLFDOIUDWER\KLJKILYHSLFWXUHDUHDOO\PDQO\KLJK

  • $GXOW7FHOOO\PSKRPD&DXVHGE\+7/9DGXOWSUHVHQWVZLWKFX7DQHRXVOHVLRQV

    %XUNLWWO\PSKRPD,WKLQNRI.QLJKW5LGHU 2QWKHVKRZ.QLJKW5LGHU0LFKDHOKDGDFDUQDPHG.LWW .LWW%XUNLWWDQG0LFKHDOFP\FDUHGULYLQJDURXQG+HV

    WKHQLJKWULGHU VWDUU\VN\DSSHDUDQFH.LWWZDVDQF\OLQGHUFDUZLWKULPV W

    +HUHLWJHWVFUD]\,SLFWXUH0LFKDHOPDNLQJRXWZLWKDQ$IULFDQFKLFNRQ.LWWVKRRG HQGHPLFLQ$IULFDNLVVLQJ (%9

    0XOWLSOHP\HORPD )RUWKH6[RI00WKLQN&5$%00PPPP&5$%LVGHOLFLRXV

    EXW,DPIXFNLQJ&5$%E\DERXWKDYLQJPXOWLSOHP\HORPD &K\SHU&DOFHPLD 55HQDOLQVXIILFLHQF\ $$QHPLD %%RQHO\WLFOHVLRQV%DFNSDLQ 1RWRQO\GR\RXJHWGHOLFLRXVFUDE00PPP\RXDOVRJHW

    GHOLFLRXVIULHGHJJPRQRFORQDOSODVPDFHOOVKDYHIULHGHJJDSSHDUHQFH

    %XWZDLWWKHUHVPRUH

  • %DOOV

    ,QDGGLWLRQROGSHRSOHDUHJHQHUDOO\DOOKDLU\WKXVWKLVWXPRULVFRPPRQLQWKHHOGHUO\

    $OVR75$3WKHKDLU\DQLPDO $//

    7G7PDUNHURISUH7DQGSUH%FHOOV,IRUJHWPQHPRQLFV$//7KH'DPQ7LPH

    $VVRFLDWHGZLWKGRZQVV\QGURPH:H$//IDOO'2:1 6LQFHFKLOGUHQKDYH'RZQVLWLVORJLFDOWKDW$//

    LVVHHQLQFKLOGUHQQRWHKRZHYHUWKDWSHRSOHZLWK'RZQVDOVRJHW$0/

    &DQDOVROLQN'RZQVWRWKHIDFWWKDW$//KDVDEHWWHUSURJQRVLVZKHQWLVVHHQ

    $//$GROHVFHQWV&R0S/DLQDERXW&/HDQLQJ $//.LGVXQGHU $0/$GROHVFHQWV &0/3HRSOHDJHG &//3HRSOHDJHGDQGXS

    &KURPRVRPDOWUDQVORFDWLRQV &0/WWKH3KLODGHOSKLDFKURPRVRPH3KLODGHOSKLD

    &UHD0/FKHHVH %XUNLWWVW8SSHUFDVH%ORRNVOLNHDQ 0DQWOOHFHOOWOOLPSOLVH,QFUHDVHGF\FOLQGVR

    FUD]\LQFUHDVHLQFHOOF\FOHUDWH )ROOLFXODUW)RXUWHHQVWDUWVZLWK) (ZLQJVVDUFRPDW3DWULFN(ZLQJVQXPEHUZDV

    ZKLFKHTXDOV &KURQLFP\HORSUROLIHUDWLYHGLVRUGHUV

    0\HORILEURVLVLVILEURWLFREOLWHUDWLRQRIWKHERQHPDUURZWHDUGURS

  • FHOOVDUHVHHQ7KHERQHPDUURZLVFU\LQJEHFDXVHLWLVILEURVHG

    3KDUPDFRORJ\ +HSDULQ

    )RUUDSLGUHYHUVDORIKHSDULQHIIHFWVXVSURWDPLQHVXOIDWH$SRVLWLYHO\FKDUJHGPROHFXOHWKDWELQGVWKHQHJDWLYHO\FKDUJHGKHSDULQ3RVLWLYHO\FKDUJHGOLNHDSURWRQ

    /HSLUXGLQDQGELYDOLUXGLQGLUHFWO\LQKLELWWKURPELQDQGDUHXVHGDVDKHSDULQDOWHUQDWLYHLQSDWLHQWVZLWKKHSDULQLQGXFHGWKURPERF\WRSHQLD+,7/HSLUXGLQDQGELYDOLUXGLQDUHUXGHLQWKDWWKH\WDNHKHSDULQVMREDQGPDNHLWZRUWKOHVVKHSDULQLVSLVVHG

    $UJDWUREDQKDVWKHVDPHPHFKDQLVP+HSDULQLVVRIUXVWUDWHGE\WKHUXGHOH