Core Revision Notes Frcs

3RVWJUDGXDWH
6XUJLFDO
5HYLVLRQ1RWHV
&RUHPRGXOHV
3UHSDUHGE\
0U6WHSKHQ3DUNHU%6F06)5&6*HQ6XUJ
)5&6(G
6XUJLFDO6SHFLDOLVW5HJLVWUDU
8SGDWHG-DQXDU\
)RUZDUG
7KHVHUHYLVLRQQRWHVKDYHEHHQSUHSDUHGWRFRPSOHPHQWVWDQGDUGVXUJLFDOWH[WERRNVDQGKDYH
EHHQ HGLWHG WR WKH VDPH IRUPDW DV WKH 05&6 V\OODEXV (DFK VHFWLRQ KDV D ELEOLRJUDSK\ RI
UHFHQWO\SXEOLVKHGUHYLHZDQGRULJLQDODUWLFOHVZKLFKKDYHEHHQ VHOHFWHGIRUWKHLUUHOHYDQFHDQG
UHDGDELOLW\3UHVVXUHRIVSDFHKDVQHFHVVLWDWHGDVHOHFWLYHDSSURDFKWRWKHWRSLFVLQFOXGHG,W
LVKRZHYHUKRSHGWKDWDORQJZLWKWKH5R\DO&ROOHJHRI6XUJHRQVRI(QJODQG67(3&RXUVHWKH
5R\DO&ROOHJHRI6XUJHRQVRI(GLQEXUJK6(/(&7&RXUVHDQGVWDQGDUGVXUJLFDOWH[WVWKH\ZLOO
SURYH D XVHIXO UHYLVLRQ DLG IRU SRVWJUDGXDWH VXUJLFDO H[DPLQDWLRQV 9DULDWLRQV LQ VXUJLFDO
SUDFWLFH ZLOO LQHYLWDEO\ PHDQ WKDW WKHUH ZLOO EH GLVDJUHHPHQW ZLWK VRPH RI WKH YLHZV DQG
UHFRPPHQGDWLRQVSUHVHQWHG,QWKHVHFRQWLQXRXVDUHDVDQDWWHPSWKDVEHHQPDGHWRLQFOXGH
RSLQLRQVWKDWDUHQRWWRRH[WUHPHDQGZLOOKRSHIXOO\VDWLVI\PRVWH[DPLQHUV
7R FRPSOHPHQW WKHVH QRWHV D ZHE VLWH KDV EHHQ HVWDEOLVKHG ZLWK FOLQLFDO LPDJHV [ UD\V
SDWKRORJ\VOLGHVDVHOHFWLRQRIFOLQLFDODQGEDVLFVFLHQFHPXOWLSOHFKRLFHTXHVWLRQVDQGUHYLHZV
RIUHFHQWSDSHUV7KHZHEVLWHFDQEHIRXQGDW
ZZZVXUJLFDOWXWRURUJXN
%RWKWKHZHEVLWHDQGWKHVHQRWHVZLOOHYROYHZLWKWLPHDQGLWLVKRSHGWKDWWKH\ZLOOEHDXVH IXO
VWXG\DQGUHYLVLRQDLG3XEOLVKLQJWKHVHQRWHVRQWKHLQWHUQHWZLOODOORZWKHPWREHXSGDWHGRQ
D UHJXODU EDVLV ,Q RUGHU IRU WKHP WR UHPDLQ UHOHYDQW WR WUDLQHHV QHHGV LW LV HVVHQWLDO WKDW
IHHGEDFNLVUHFHLYHGIURPERWKWUDLQHHVDQGWUDLQHUVUHJDUGLQ JWKHLUIRUPDWDQGFRQWHQW7KH\
DUHDWSUHVHQWLQFRPSOHWH,I\RXKDYHVXJJHVWLRQVFRQWULEXWLRQVRUUHIHUHQFHVWKDW\RXWKLQN
VKRXOGEHDGGHG,ZRXOGEHJODGWRUHFHLYHWKHP
6-3$5.(5%6F06)5&6)5&6(G
6XUJLFDO6SHFLDOLVW5HJLVWUDU
VWHYH#VXUJLFDOWXWRURUJXN
&RQWHQWV
35(23(5$7,9(0$1$*(0(17 21(
3UHRSHUDWLYHSUHSDUDWLRQDQGSHULRSHUDWLYHPDQDJHPHQW
'LDEHWHVPHOOLWXV
2EVWUXFWLYH-DXQGLFH
&DUGLRYDVFXODUGLVHDVH
$QDHPLD
6LFNOHFHOODQDHPLD
$6$*UDGLQJ
3UHRSHUDWLYHLQYHVWLJDWLRQV
7HVWVRIUHVSLUDWRU\FDUGLDFDQGUHQDOGLVHDVH
,QIHFWLRQ
6RXUFHVRIVXUJLFDOLQIHFWLRQ
:RXQGLQIHFWLRQ
$VHSVLVDQGDQWLVHSVLV
6WHULOLVDWLRQDQGGLVLQIHFWLRQ
7HWDQXV
*DVJDQJUHQH
3VHXGRPHPEUDQRXVFROLWLV
7XEHUFXORVLV
,QYHVWLJDWLYHDQGRSHUDWLYHSURFHGXUHV
'UDLQDJHRIVXSHUILFLDODQGGHHSDEVFHVVHV
,QWHVWLQDODQGYDVFXODUDQDVWRPRVHV
$QDHVWKHVLD
/RFDODQGUHJLRQDODQDHVWKHVLD
*HQHUDODQDHVWKHVLD
7KHDWUHSUREOHPV
'LDWKHUP\
/DVHUV
7RXUQLTXHWV
3UHYHQWLRQRILQMXULHVLQWKHDQDHVWKHWLVHGSDWLHQW
0LQLPDODFFHVVWKHUDS\
+HSDWLWLV%
+,9LQIHFWLRQ
3KDUPDFRORJ\
2UDOFRQWUDFHSWLYHVDQG+57
/D[DWLYHV
3(5,23(5$7,9(0$1$*(0(17 7:2
6NLQDQGZRXQGV
:RXQGKHDOLQJ
,QFLVLRQVDQGZRXQGFORVXUH
6XWXUHPDWHULDOVQHHGOHVDQGGUHVVLQJV
VXUJLFDOWXWRURUJXN $IUHHRQOLQHVXUJLFDOUHVRXUFH
&RQWHQWV
6FDUVDQGFRQWUDFWXUHV
:RXQGGUHVVLQJV
)OXLGEDODQFH
)OXLGDQGHOHFWURO\WHEDODQFH
7HFKQLTXHVRIYHQRXVDFFHVV
6XUJLFDOQXWULWLRQ
%ORRG
+DHPRVWDVLV
'LVRUGHUVRIFRDJXODWLRQDQGKDHPRVWDVLV
%ORRGJURXSV
3RVWRSHUDWLYHSDLQ
3RVWRSHUDWLYHFRPSOLFDWLRQV
3RVWRSHUDWLYHS\UH[LD
:RXQGGHKLVFHQFH
3RVWRSHUDWLYHSXOPRQDU\FRPSOLFDWLRQV
3HULRSHUDWLYHFDUGLRYDVFXODUFRPSOLFDWLRQV
2WKHUSRVWRSHUDWLYHFRPSOLFDWLRQV
3K\VLRORJLFDOUHVSRQVHWRLQIHFWLRQWUDXPDDQGVXUJHU\
75$80$
$VVHVVPHQWDQGUHVXVFLWDWLRQ
$7/60HWKRGRORJ\
$LUZD\DQGYHQWLODWLRQ
+\SRYRODHPLFVKRFN
&KHVWDEGRPHQDQGSHOYLV
&KHVWWUDXPD
3QHXPRWKRUD[
&KHVWGUDLQV
$EGRPLQDOWUDXPD
5HQDOWUDXPD
/RZHUXULQDU\WUDFWWUDXPD
6SOHQLFLQMXU\
&HQWUDOQHUYRXVV\VWHPWUDXPD
+HDGLQMXULHV
%UDLQ6WHP'HDWK
6SLQDOLQMXULHV
&HQWUDOQHUYRXVV\VWHPLQIHFWLRQV
*XQVKRWDQGEODVWZRXQGV
6NLQORVV IODSVDQGJUDIWV
%XUQV
)DFLDODQGRUELWDOLQMXULHV
3ULQFLSOHVRIOLPELQMXU\
&RPSDUWPHQWV\QGURPHV
7UDXPDVFRULQJV\VWHPV
&RQWHQWV
,17(16,9(&$5(
3ULQFLSOHRI,&8
&DUGLRYDVFXODU
&DUGLRYDVFXODUPRQLWRULQJ
&DUGLDFDUUHVWDQGUHVXVFLWDWLRQ
&DUGLRSXOPRQDU\E\SDVV
9DOYXODUKHDUWGLVHDVH
5HVSLUDWRU\
5HVSLUDWRU\VXSSRUW
5HVSLUDWRU\IDLOXUH
&RPSOLFDWLRQVRIWKRUDFLFRSHUDWLRQV
$FXWHUHVSLUDWRU\GLVWUHVVV\QGURPH
0XOWLSOHRUJDQIDLOXUH
5HQDOIDLOXUH
3QHXPRQLDOXQJDEVFHVVDQGHPS\HPD
3K\VLRORJLFDO6FRULQJV\VWHPV
1(23/$6,$7(&+1,48(6$1'287&20(2)685*(5<
3DWKRORJLFDOWHUPV
&OLQLFRSDWKRORJLFDOVWDJLQJRIFDQFHU
3ULQFLSOHVRIRQFRORJ\
5DGLRWKHUDS\
&KHPRWKHUDS\
&DQFHUJHQHWLFV
$VVHVVPHQWRIEUHDVWGLVHDVH
%UHDVWLPDJLQJ
%HQLJQEUHDVWGLVHDVH
%UHDVWSDLQ
)LEURDGHQRPDV
%UHDVWF\VWV
%UHDVW,QIHFWLRQV
*\QDHFRPDVWLD
%UHDVWFDQFHU
%UHDVWUHFRQVWUXFWLRQ
%UHDVWFDQFHUVFUHHQLQJ
0DOLJQDQWPHODQRPD
6NLQFDQFHUV
%HQLJQVNLQOHVLRQVDQGPDQLIHVWDWLRQVRIV\VWHPLFGLVHDVH
1DLOGLVRUGHUV
3DOOLDWLYHFDUH
(WKLFVDQGWKHODZ
,QIRUPHGFRQVHQW
7KH&RURQHU
&RQWHQWV
&OLQLFDODXGLW
6WDWLVWLFVIRUVXUJHRQV
'HVLJQDQGDQDO\VLVRIFOLQLFDOWULDOV
*/266$5<2)'(5,9$7,212)$1$720,&$/$1' 3$7+2/2*,&$/7(506

,1'(;
3UHRSHUDWLYHPDQDJHPHQW
3UHRSHUDWLYHPDQDJHPHQW 2QH
3UHRSHUDWLYHSUHSDUDWLRQDQGSHULRSHUDWLYHPDQDJHPHQW
'LDEHWHVPHOOLWXV
3UHDQGSHULRSHUDWLYHPDQDJHPHQWGHSHQGVRQVHYHULW\RIGLVHDVH
'LHWFRQWUROOHGGLDEHWHV
1RVSHFLILFSUHFDXWLRQV
&KHFNEORRGVXJDUDQGFRQVLGHU*OXFRVH3RWDVVLXP,QVXOLQ*.,LQIXVLRQLI!PPROO
2UDOK\SRJO\FDHPLFV
6WRSORQJDFWLQJVXOSKRQ\OXUHDVHJFKORUSURSDPLGHKRXUVSULRUWRVXUJHU\

6KRUWDFWLQJDJHQWV RPLWRQPRUQLQJRIRSHUDWLRQ
5HVWDUWZKHQHDWLQJQRUPDOO\
&RQVLGHU*.,LQIXVLRQIRUPDMRUVXUJHU\
,QVXOLQGHSHQGHQWGLDEHWHV
&RQYHUWORQJDFWLQJLQVXOLQVWRKRXUO\$FWUDSLG
3ODFHHDUO\RQRSHUDWLQJOLVW
*LYH*.,LQIXVLRQXQWLOHDWLQJQRUPDOO\
*.,LQIXVLRQ
0DGHXSDV
XLQVXOLQ
PPROSRWDVVLXPFKORULGH
POGH[WURVH
,QIXVHGDWDUDWHRIPOKU
2EVWUXFWLYH-DXQGLFH
2SHUDWLYHPRUELGLW\DQGPRUWDOLW\LVLQFUHDVHGLQSDWLHQWVZLWKMDXQGLFHGXHWR
&RDJXODWLRQGLVRUGHUV
5HGXFHVWKHDEVRUSWLRQRIIDWVROXEOHYLWDPLQV
5HGXFHVSURGXFWLRQRIIDFWRUV,,9,,,;;
'LVRUGHUVFDQEHUHYHUVHGZLWK)UHVK)UR]HQ3ODVPDRU9LWDPLQ.
5HGXFHGZRXQGKHDOLQJ
,QFUHDVHGULVNRILQIHFWLRQ
+HSDWRUHQDOV\QGURPH
$FXWHUHQDOIDLOXUHLQSDWLHQWZLWKMDXQGLFH
3UREDEO\ GXHWRV\VWHPLFHQGRWR[DHPLD
5HTXLUHVDGHTXDWHK\GUDWLRQDQGGLXUHWLFV
9DOXHRIPDQQLWROXQSURYHQ
$OWHUHGGUXJPHWDEROLVP
+DOIOLIHRIPDQ\DQDOJHVLFVLVSURORQJHGHJPRUSKLQH
(OHFWLYHVXUJHU\VKRXOGEHGHIHUUHGIRUPRQWKVDIWHUDP\RFDUGLDOLQIDUFW
5LVNIDFWRUVIRUSRVWRSHUDWLYHP\RFDUGLDOUHLQIDUFWLRQ
6KRUWWLPHVLQFHSUHYLRXVLQIDUFW
5HVLGXDOPDMRUFRURQDU\YHVVHOGLVHDVH
3URORQJHGRUPDMRUVXUJHU\
,PSDLUHGP\RFDUGLDOIXQFWLRQ
5LVNRUSRVWRSHUDWLYHUHLQIDUFWLRQDIWHUDSUHYLRXV0,LV
PRQWKV
PRQWKV
PRQWKV
RISRVWRSHUDWLYHP\RFDUGLDOLQIDUFWVDUHVLOHQW
7KHPRUWDOLW\RIUHLQIDUFWLRQLVDSSUR[LPDWHO\
%LEOLRJUDSK\
6DOHP07DLQVK5%RPEHUJ-HWDO3HULRSHUDWLYHJOXFRFRUWLFRLGFRYHUDJH$QQ6XUJ

7KRPDV3$%DUWRQ,'HFLVLRQPDNLQJLQVXUJHU\DFXWHSRVWRSHUDWLYHUHQDOIDLOXUH %U-+RVS0HG

$QDHPLD
&DXVHVRIDQDHPLD
'HFUHDVHGKDHPRJORELQSURGXFWLRQ
5HGXFHGKDHPRJORELQV\QWKHVLV LURQGHILFLHQF\7KDODVVDHPLDFKURQLFGLVHDVH
5HGXFHG'1$V\QWKHVLV PHJDOREODVWLFDQDHPLD
5HGXFHGVWHPFHOOSURGXFWLRQ DSODVWLFDQDHPLDP\HORSUROLIHUDWLYHGLVRUGHUV
%RQHPDUURZLQILOWUDWLRQ FDUFLQRPDO\PSKRPD
7R[LFLQMXU\ UDGLRWKHUDS\FKHPRWKHUDS\LQIHFWLRQ
,QFUHDVHGUHGFHOOGHVWUXFWLRQ
%ORRGORVV DFXWHRUFKURQLF
+DHPRO\VLV LQWULQVLF
0HPEUDQHGLVRUGHUV KHUHGLWDU\VSKHURF\WRVLVHOOLSWRF\WRVLV
+DHPRJORELQRSDWKLHV VLFNOHFHOOGLVHDVH
*O\FRJHQRO\VLV S\UXYDWHNLQDVHGHILFLHQF\
2[LGDWLRQ *3'GHILFLHQF\
+DHPRO\VLV H[WULQVLF
,PPXQH ZDUPRUFROGDQWLERGLHV
0LFURDQJLRSDWKLF ',&773
+DHPRO\WLFXUDHPLFV\QGURPH
,QIHFWLRQ HJFORVWULGLDOEDFWHUDHPLD
+\SHUVSOHQLVP
,URQGHILFLHQF\DQDHPLD
,URQGHILFLHQF\LVFRPPRQHVWFDXVHRIDQDHPLDZRUOGZLGH
5HVXOWVLQK\SRFKURPLFDQGPLFURF\WLFUHGEORRGFHOOV
'LDJQRVLVRILURQGHILFLHQF\LVXVXDOO\VWUDLJKWIRUZDUG
'HWHUPLQLQJWKHFDXVHFDQEHGLIILFXOW
,URQPHWDEROLVP
7KHERG\FRQWDLQVDERXWJRILURQ
LVIRXQGLQKDHPRJORELQ
'DLO\GLHWDU\UHTXLUHPHQWVDUHDERXWPJLQDPDQDQGPJLQDZRPHQ
$QDYHUDJHZHVWHUQGLHWFRQWDLQVDERXWPJRILURQGDLO\RQO\ RIZKLFKLVDEVRUEHG
$EVRUSWLRQRFFXUVLQWKHIHUURXVIRUPLQWKHXSSHUSDUWRIVPDOOLQWHVWLQH
,URQLVFDUULHGWRERQHPDUURZE\SODVPDWUDQVIHUULQ
,URQLVVWRUHGERXQGWRIHUULWLQDQGDVKDHPRVLGHULQ
$ERXWPJRILURQLVORVWSHUGD\LQXULQHIDHFHVDQGVKHGFHOOV
0HQVWUXDOORVVHVDFFRXQWIRUDQH[WUDPJSHUPRQWK
&OLQLFDOIHDWXUHV
'HSHQGRIUDWHRIRQVHW
,ILQVLGLRXVWKHQV\PSWRPVDUHRIWHQIHZ
&RPPRQHVWV\PSWRPVDUHRIOHWKDUJ\DQGG\VSQRHD
6NLQDWURSK\RFFXUVLQDERXWRISDWLHQWV
1DLOFKDQJHVLQFOXGHNRLORQ\FKLDVSRRQVKDSHGQDLOV
3DWLHQWVPD\DOVRGHYHORSDQJXODUVWRPDWLWLVDQGJORVVLWLV
2HVRSKDJHDODQGSKDU\QJHDOZHEVPD\EHVHHQ
([DPLQDWLRQVKRXOGEHGLUHFWHGWRSRVVLEOHXQGHUO\LQJFDXVH
&DXVHVRILURQGHILFLHQF\
,QFUHDVHGEORRGORVV XWHULQH*,WUDFWXULQH
,QFUHDVHGGHPDQGV SUHPDWXULW\JURZWK FKLOGEHDULQJ
0DODEVRUSWLRQ SRVWJDVWUHFWRP\FRHOLDFGLVHDVH
3RRUGLHW
,QYHVWLJDWLRQV
7KHIROORZLQJLQYHVWLJDWLRQVPD\EHUHTXLUHG
)XOOEORRGFRXQWDQGEORRGILOPH[DPLQDWLRQ
+DHPDWLQLFDVVD\VVHUXPIHUULWLQYLWDPLQ% DQGIRODWH
)DHFDORFFXOWEORRGV
0LGVWUHDPXULQH
(QGRVFRSLFRUEDULXPVWXGLHVRIWKH*,WUDFW
'LDJQRVLVRILURQGHILFLHQF\ZLOOEHEDVHGRQ
5HGXFHGKDHPRJORELQPHQJGOZRPHQJGO
5HGXFHGPHDQFHOOYROXPHIO
5HGXFHGPHDQ FHOOKDHPRJORELQSJ
5HGXFHGPHDQFHOOKDHPRJORELQFRQFHQWUDWLRQJO
%ORRGILOP PLFURF\WLFK\SRFKURPLFUHGFHOOV
5HGXFHGVHUXPIHUULWLQPJO
5HGXFHGVHUXPLURQPHQPPROOZRPHQPPROO
,QFUHDVHGVHUXPLURQELQGLQJFDSDFLW\!PPROO
'LDJQRVWLFERQHPDUURZH[DPLQDWLRQLVUDUHO\UHTXLUHG
2WKHUFDXVHVRIDK\SRFKURPLFPLFURF\WLFDQDHPLDLQFOXGH
$QDHPLDRIFKURQLFGLVHDVH
7KDODVVDHPLDWUDLW
6LGHUREODVWLFDQDHPLD
0DQDJHPHQW
0DQDJHPHQW RILURQGHILFLHQF\DQDHPLDUHOLHVRQ
,GHQWLILFDWLRQDQGPDQDJHPHQWRIWKHXQGHUO\LQJFDXVH
,URQUHSODFHPHQWWKHUDS\
,URQUHSODFHPHQWWKHUDS\
2UDOUHSODFHPHQWZLWKIHUURXVVDOWVDUHWKHSUHIHUUHGRSWLRQ
3UHSDUDWLRQVLQFOXGHIHUURXVVXOSKDWHIXPDUDWHDQGJOXFRQDWH
3URYLGHDSSUR[LPDWHO\PJRILURQSHUGD\
6LGHHIIHFWVLQFOXGHHSLJDVWULFSDLQFRQVWLSDWLRQDQGGLDUUKRHD
(IIHFWLYHWUHDWPHQWVKRXOGLQFUHDVHKDHPRJORELQFRQFHQWUDWLRQE\JOGD\
6KRXOGFRQWLQXHIRUWKUHHPRQWKVDIWHUQRUPDOKDHPRJORELQDFKLHYHG
,QWUDYHQRXVLURQSUHSDUDWLRQVDUHDYDLODEOHRQQDPHGSDWLHQWEDVLV
6HYHUHVLGHHIIHFWVHJDQDSK\OD[LVPD\RFFXU
,QMHFWLRQVFDQUHVXOWLQVNLQVWDLQLQJDQGDUWKUDOJLD
6KRXOGRQO\EHXVHGZKHQSDWLHQWVFDQQRWWROHUDWHRUDOSUHSDUDWLRQ
3UHRSHUDWLYHDQDHPLD
%RWKDQDHPLDDQGSRO\F\WKDHPLDLQFUHDVHSRVWRSHUDWLYHPRUWDOLW\
3HULRSHUDWLYHKDHPRJORELQFRQFHQWUDWLRQRIDSSUR[LPDWHO\JGOLVLGHDO
3UHRSHUDWLYHWUDQVIXVLRQPD\LQGXFHLPPXQRVXSSUHVVLRQ
0D\LQFUHDVHULVNRILQIHFWLRQDQGWXPRXUUHFXUUHQFH
,IWUDQVIXVLRQLVUHTXLUHGLWVKRXOGEHJLYHQDWOHDVWGD\VSUHRSHUDWLYHO\
%ORRGWUDQVIXVHGLPPHGLDWHO\SULRUWRRSHUDWLRQKDVUHGXFHG2 FDUU\LQJFDSDFLW\
%LEOLRJUDSK\
-ROREH20'RHVWKLVHOGHUO\SDWLHQWKDYHLURQGHILFLHQF\DQDHPLDDQGZKD WLVWKHXQGHUO\LQJFDXVH"
3RVWJUDG0HG-
0D\5-(DUO\$5,URQGHILFLHQF\LQFKLOGKRRG -56RF0HG
5RFNHU\'&2FFXOWJDVWURLQWHVWLQDOEOHHGLQJ1(QJ-0HG
6LFNOHFHOODQDHPLD
3DWKRORJ\
1RUPDOKDHPRJORELQKDV[. DQG[ FKDLQV

,QVLFNOHFHOOGLVHDVHVLQJOHDPLQRDFLGVXEVWLWXWLRQRFFXUVRQ FKDLQ
9DOLQHVXEVWLWXWHGIRUJOXWDPLFDFLGDWSRVLWLRQ
7KHUHVXOWLQJ+E6LVOHVVVROXEOHWKDQ+E$
6LFNOHKDHPRJORELQJHQHLVLQKHULWHGDVDXWRVRPDOUHFHVVLYH
&RPPRQO\VHHQLQSDWLHQWVRI$IUR&DULEEHDQGHVFHQW
6LFNOHFHOODQDHPLDRFFXUVLQKRPR]\JRWHV
6LFNOHFHOOWUDLWRFFXUVLQKHWHUR]\JRWHV
:KHQGHR[\JHQDWHGKDHPRJORELQXQGHUJRHVSRO\PHULVDWLRQDQGIRUPVFKDUDFWHULVWLFVLFNOH
FHOOV
%ORFNDJHRIVPDOOYHVVHOVUHVXOWVLQ YDVRRFFOXVLYHHYHQWV
6LFNOLQJPD\EHSUHFLSLWDWHGE\LQIHFWLRQIHYHUGHK\GUDWLRQFROGK\SR[LD
&OLQLFDOIHDWXUHV
3DWLHQWVKDYHFKURQLFKDHPRO\WLFDQDHPLDZLWKKLJKUHWLFXORF\WHFRXQWV
$WLQFUHDVHGULVNRILQIHFWLRQE\HQFDSVXODWHGEDFWHULD
$FXWHFRPSOLFDWLRQVLQFOXGH
3DLQIXOFULVHV
:RUVHQLQJDQDHPLD
$FXWHFKHVWV\PSWRPV
6\PSWRPVDQGVLJQVRIQHXURORJLFDORURFXODUHYHQWV
3ULDSLVP
'LDJQRVLVFDQEHFRQILUPHGE\
6LFNOHVROXELOLW\WHVW
+LJKSHUIRUPDQFHOLTXLGFKURPDWRJUDSK\
3UHYHQWLRQRIFRPSOLFDWLRQV
3DWHQWDQGSDUHQWHGXFDWLRQLVLPSRUWDQW
3DWLHQWVQHHGWRDYRLGWKHFROGGHK\GUDWLRQHWF
$QWLELRWLFSURSK\OD[LVVKRXOGEHFRQVLGHUHGLQFKLOGUHQOHVVWKDQ\HDUV
8VXDOO\SKHQR[\PHWK\OSHQLFLOOLQLVWKHDQWLELRWLFRIFKRLFH
&KLOGUHQVKRXOGEHYDFFLQDWHGZLWKWKHSQHXPRFRFFDOYDFFLQH
3HULRSHUDWLYHSUHFDXWLRQV
3DWLHQWVDWKLJKULVNRIDFXWHVLFNOLQJFRPSOLFDWLRQVXQGHUJHQHUDODQDHVWKHVLD
5HTXLUHFDUHIXOSUHDQGSHULRSHUDWLYHPDQDJHPHQW
7UDQVIXVLRQPD\EHUHTXLUHGWRHQVXUH+ERIJG/
3UHRSHUDWLYHH[FKDQJHWUDQVIXVLRQLVUDUHO\UHTXLUHG
1HHGWR
$YRLGGHK\GUDWLRQ
$YRLGK\SR[LD
&RQWUROLQWUDDQGSRVWRSHUDWLYHSDLQ
0DQDJHPHQWRIFRPSOLFDWLRQV
3DWLHQWVZLWKVXVSHFWHGFRPSOLFDWLRQVUHTXLUH
,QWUDYHQRXVIOXLGV
$GHTXDWHSDLQUHOLHIRIWHQZLWKRSLDWHV
10
2[\JHQ
(DUO\DQWLELRWLFWKHUDS\LIVXVSHFWHGLQIHFWLRQ
3DLQIXOFULVHV
RISDWLHQWVZLWKVLFNOHFHOODQDHPLDZLOOKDYHRQHHSLVRGHSHU\HDU
%RQ\FULVHVUHVXOWIURPORFDOLVHGLVFKDHPLD
$YDVFXODUQHFURVLVPD\RFFXU
7UHDWPHQWLQYROYHVUHVWDQGDQDOJHVLD
$EGRPLQDOFULVHVSUHVHQWZLWKSDLQYRPLWLQJGLVWHQVLRQDQGIHDWXUHVRISHULWRQLVP
RIDGROHVFHQWVZLWKVLFNOHFHOODQDHPLDZLOOKDYHJDOOVWRQHV
$QDHPLD
:RUVHQLQJDQDHPLDRIWHQSUHVHQWVZLWKWLUHGQHVVDQGFDUGLDFIDLOXUH
5HVXOWVIURPDFXWHVSOHQLFVHTXHVWUDWLRQRIDSODVWLFFULVLV
,QERWKVLWXDWLRQVXUJHQWWUDQVIXVLRQPD\EHUHTXLUHG
$FXWHFKHVWV\QGURPH
3UHVHQWVZLWKFKHVWSDLQFRXJKIHYHUDQGWDFK\SQRHD
$FFRPSDQLHGE\FOLQLFDODQGUDGLRORJLFDOIHDWXUHVRIFRQVROLGDWLRQ
&KODP\GLDDQG0\FRSODVPDDUHLPSRUWDQWDHWLRORJLFDODJHQWV
5HTXLUHSDUHQWHUDODQWLELRWLFWKHUDS\ XVXDOO\HU\WKURP\FLQ
$FXWHQHXURORJLFDOHYHQWV
$VWRNHRFFXUVLQDSSUR[LPDWHO\RISDWLHQWVEHIRUHWKHDJHRI\HDUV
$OODFXWH QHXURORJLFDOV\PSWRPVUHTXLUHLQYHVWLJDWLRQ
$FXWHVWURNHUHTXLUHVXUJHQWH[FKDQJHWUDQVIXVLRQ
3ULDSLVP
2FFXUVLQDERXWRIPDOHVEHIRUHWKHDJHRI\HDUV
,IODVWVIRUPRUHWKDQDIHZKRXUVFDQUHVXOWLQHUHFWLOHLPSRWHQFH
%ORRGVKRXOGEHDVSLUDWHGIURPFRUSRUDFDYHUQRVD
,QWUDFDYHUQRVDOLQMHFWLRQRIDOSKDEORFNHUPD\EHRIEHQHILW
%LEOLRJUDSK\
'DYLHV6&2QL/0DQDJHPHQWRISDWLHQWVZLWKVLFNOHFHOOGLVHDVH%U0HG-
6HUMHDQW*56LFNOHFHOOGLVHDVH/DQFHW
6WHLQEHUJ0+0DQDJHPHQWRIVLFNOHFHOOGLVHDVH1(QJO-0HG
11
$6$*UDGLQJ
7DEOH $PHULFDQ6RFLHW\RI$QHVWKHVLRORJLVWV$6$JUDGHDQGSUHGLFDWHGPRUWDOLW\
$6$*UDGH
,
,,
,,,
,9
9
'HILQLWLRQ
1RUPDOKHDOWK\LQGLYLGXDO
0LOGV\VWHPLFGLVHDVHWKDWGRHVQRWOLPLWDFWLYLW\
6HYHUV\VWHPLFGLVHDVHWKDWOLPLWVDFWLYLW\EXWLVQRW
LQFDSDFLWDWLQJ
,QFDSDFLWDWLQJV\VWHPLFGLVHDVHZKLFKLVFRQVWDQWO\OLIH
WKUHDWHQLQJ
0RULEXQGQRWH[SHFWHGWRVXUYLYHKRXUVZLWKRU
ZLWKRXWVXUJHU\
0RUWDOLW\

RISDWLHQWVSUHVHQWLQJIRUHOHFWLYHVXUJHU\DUH$6$JUDGH
2SHUDWLYHPRUWDOLW\IRUWKHVHSDWLHQWVLVOHVVWKDQLQ
7KHUHTXHVWIRUSUHRSHUDWLYHLQYHVWLJDWLRQVVKRXOGEHEDVHGRQ
)DFWRUVDSSDUHQWIURPWKHFOLQLFDODVVHVVPHQW
7KHOLNHOLKRRGRIDV\PSWRPDWLFDEQRUPDOLWLHV
7KHVHYHULW\RIWKHVXUJHU\FRQWHPSODWHG
7DEOH ,QGLFDWLRQVIRUSUHRSHUDWLYHLQYHVWLJDWLRQV
,QYHVWLJDWLRQ
)XOOEORRGFRXQW
8UHD HOHFWURO\WHV
(&*
&KHVW;UD\
,QGLFDWLRQ
$OODGXOWZRPHQ
0HQRYHUWKHDJHRI\HDUV
&DUGLRYDVFXODURUKDHPDWRORJLFDOGLVHDVH
$OOSDWLHQWVRYHU\HDUV
&DUGLRYDVFXODUDQGUHQDOGLVHDVH
'LDEHWLFV
3DWLHQWVRQVWHURLGVGLXUHWLFV$&(LQKLELWRUV
0HQRYHU\HDUV
:RPHQRYHU\HDUV
'LDEHWLFV
&DUGLRYDVFXODUDQGUHVSLUDWRU\GLVHDVH
0DOLJQDQF\
0DMRUWKRUDFLFDQGXSSHUDEGRPLQDOVXUJHU\
3UHRSHUDWLYHLQYHVWLJDWLRQVUDUHO\XQFRYHUXQVXVSHFWHGPHGLFDOFRQGLWLRQV
,QHIILFLHQWDVDPHDQVRIVFUHHQLQJIRUDV\PSWRPDWLFGLVHDVH
RISDWLHQWVKDYHDEQRUPDOLWLHVRQLQYHVWLJDWLRQVQRWSUHGLFWHGE\DFOLQLFDODVVHVVPHQW
2QO\RIWKHVHLQYHVWLJDWLRQVHYHUFKDQJHWKHSDWLHQWVPDQDJHPHQW
2YHURISUHRSHUDWLYHLQYHVWLJDWLRQVFRXOGEHHOLPLQDWHGZLWKRXWDGYHUVHHIIHFW
3UHRSHUDWLYHIDVWLQJ
*HQHUDODQDHVWKHVLDLQFUHDVHVULVNRIDVSLUDWLRQRIJDVWULFFRQWHQWV
7UDGLWLRQDOO\SDWLHQWVKDYHEHHQVWDUYHGVLQFHPLGQLJKWSULRUWRHOHFWLYHVXUJHU\
1RZNQRZQWKDWFOHDUIOXLGVOHDYHVWRPDFKZLWKLQWZRKRXUV
12
&OHDUIOXLGVGRQRWLQFUHDVHYROXPHRUDFLGLW\RIJDVWULFFRQWHQWV
)RUHPHUJHQF\VXUJHU\RUDOLQWDNHVKRXOGEHUHVWULFWHG
0DQ\VXUJLFDOHPHUJHQFLHVDUHDVVRFLDWHGZLWKGHOD\HGJDVWULFHPSW\LQJ
%LEOLRJUDSK\
%DUQDUG1$:LOOLDPV5:6SHQFHU(03UHRSHUDWLYHSDWLHQWDVVHVVPHQWDUHYLHZRIWKHOLWHUDWXUH
DQGUHFRPPHQGDWLRQV$QQ5&ROO6XUJ(QJ
13
7HVWVRIUHVSLUDWRU\FDUGLDFDQGUHQDOGLVHDVH
5HVSLUDWRU\
&KHVW[UD\
+LJKUHVROXWLRQ&7
$UWHULDOEORRGJDVHV
/XQJIXQFWLRQWHVWV
$OORZVDVVHVVPHQWRI
/XQJYROXPHV
$LUZD\FDOLEUH
*DVWUDQVIHU
/XQJYROXPHVDUHDVVHVVHGZLWKVSLURPHWU\
9ROXPHVPHDVXUHGLQFOXGH
,& ,QVSLUDWRU\FDSDFLW\
,59 ,QVSLUDWRU\UHVHUYHYROXPH
79 7LGDOYROXPH
9& 9LWDOFDSDFLW\
)5& )XQFWLRQDOUHVLGXDOFDSDFLW\
59 5HVLGXDOYROXPH
(59 ([SLUDWRU\UHVHUYHYROXPH
7/& 7RWDOOXQJFDSDFLW\
)LJXUH 5HVSLUDWRU\YROXPHV
$LUZD\FDOLEUHFDQEHDVVHVVHGE\SHDNIORZPHDVXUHPHQWV
)ORZUDWHVPHDVXUHGLQFOXGH
)9& )RUFHGYLWDOFDSDFLW\
)(9 )RUFHGH[SLUDWRU\YROXPHLQRQHVHFRQG
14
)(9 )9&UDWLRLVLPSRUWDQW
)LJXUH )RUFHGYLWDOFDSDFLW\DQGIRUFHGH[SLUDWRU\YROXPH
&DUGLDF
1RQLQYDVLYH
&KHVW[UD\
(&*
(FKRFDUGLRJUDSK\
([HUFLVHWHVW
,QYDVLYH
&RURQDU\DQJLRJUDSK\
7KDOOLXPVFDQQLQJ
15
,QIHFWLRQ
6RXUFHVRIVXUJLFDOLQIHFWLRQ
RIQRVRFRPLDOLQIHFWLRQVRFFXULQVXUJLFDOSDWLHQWV
0RVWSRVWRSHUDWLYHLQIHFWLRQVDULVHIURPSDWLHQWVRZQIORUD
&RPPRQHVWVLWHVRILQIHFWLRQDUH
8ULQDU\WUDFW

5HVSLUDWRU\WUDFW

%DFWHUDHPLD

1RUPDOERG\IORUD
6NLQ VWDSK\ORFRFFLVWUHSWRFRFFL
2UDOFDYLW\ VWDSK\ORFRFFLVWUHSWRFRFFLDQGDQDHUREHV
1DVRSKDU\Q[ VWDSK\ORFRFFLVWUHSWRFRFFLKDHPRSKLOXVDQGDQDHUREHV
/DUJHERZHO JUDPQHJDWLYHURGVHQWHURFRFFLDQGDQDHUREHV
8ULQDU\WUDFW QRUPDOO\VWHULOH
6RXUFHVRIZRXQGFRQWDPLQDWLRQ
'LUHFWLQRFXODWLRQ
3DWLHQWVUHVLGXDOIORUDRUVNLQFRQWDPLQDWLRQ
6XUJHRQ
VKDQGV
&RQWDPLQDWHGLQVWUXPHQWVRUGUHVVLQJV
&RQWDPLQDWHGSURFHGXUH
'UDLQVFDWKHWHUVRULQWUDYHQRXVOLQHV
$LUERUQHFRQWDPLQDWLRQ
6NLQDQGFORWKLQJRIVWDIIDQGSDWLHQWV
$LUIORZLQRSHUDWLQJWKHDWUHRUZDUG
+DHPDWRJHQRXVVSUHDG
,QWUDYHQRXVOLQHV
6HSVLVDWRWKHUDQDWRPLFDOVLWHV
16
:RXQGLQIHFWLRQ
'HILQLWLRQRIZRXQGLQIHFWLRQ
86&HQWUHIRU'LVHDVH&RQWURO
'HILQHGWKHIROORZLQJ
6XUJLFDOVLWHLQIHFWLRQV
6XSHUILFLDOLQFLVLRQDOLQIHFWLRQ
'HHSLQFLVLRQDOLQIHFWLRQV
2UJDQVSDFHLQIHFWLRQV
6XUJLFDOVLWHLQIHFWLRQVPXVWIXOILOWKHIROORZLQJFULWHULD
,QIHFWLRQPXVWRFFXUZLWKLQGD\VRIVXUJHU\
,QIHFWLRQPXVWLQYROYHRQO\WKHVNLQDQGVXEFXWDQHRXVWLVVXH
7KHUHPXVWEHDWOHDVWRQHRIWKHIROORZLQJ
3XUXOHQWGLVFKDUJHIURPDVXSHUILFLDOLQIHFWLRQ
2UJDQLVPVLVRODWHGIURPDVHSWLFDOO\REWDLQHGZRXQGFXOWXUH
0XVWEHDWOHDVWRQHRIWKHIROORZLQJVLJQVRILQIHFWLRQ
3DLQRUWHQGHUQHVV
/RFDOLVHGVZHOOLQJ
5HGQHVVRUKHDW
$HURELFSDWKRJHQVLQZRXQGLQIHFWLRQV
6WDSK\ORFRFFXVDXUHXV
(QWHURFRFFL
&RDJXODVHQHJDWLYHVWDSK\ORFRFFL
(VFKHULFKLDFROL
3VHXGRPRQDVDHUXJLQRVD
(QWHUREDFWHUVSHFLHV
3URWHXVPLUDELOLV
.OHEVLHOODSQHXPRQLDH
&DQGLGDVSHFLHV
3UHGLVSRVLQJIDFWRUV
*HQHUDOIDFWRUV
$JHREHVLW\PDOQXWULWLRQ
(QGRFULQHDQGPHWDEROLFGLVRUGHUV
+\SR[LDDQDHPLD
0DOLJQDQWGLVHDVH
,PPXQRVXSUHVVLRQ
/RFDOIDFWRUV
1HFURWLFWLVVXH
)RUHLJQERGLHV
7LVVXHLVFKDHPLD
+DHPDWRPDIRUPDWLRQ
3RRUVXUJLFDOWHFKQLTXH
0LFURELRORJLFDOFRQWDPLQDWLRQ
7\SHDQGYLUXOHQFHRIRUJDQLVP
6L]HRIEDFWHULRORJLFDOGRVH
$QWLELRWLFUHVLVWDQFH
17
3UHYHQWLRQRIZRXQGLQIHFWLRQ
([RJHQRXV
6WHULOLVDWLRQRILQVWUXPHQWVVXWXUHVHWF
3RVLWLYHSUHVVXUHYHQWLODWLRQRIRSHUDWLQJWKHDWUHV
/DPLQDUDLUIORZLQKLJKULVNDUHDV
([FOXVLRQRIVWDIIZLWKLQIHFWLRQV
(QGRJHQRXV
6NLQSUHSDUDWLRQ
0HFKDQLFDOERZHOSUHSDUDWLRQ
$QWLELRWLFSURSK\OD[LV
*RRGVXUJLFDOWHFKQLTXH
:RXQGLQIHFWLRQUDWHV
5LVNRIZRXQGLQIHFWLRQYDULHVZLWKW\SH RIVXUJHU\
,QIHFWLRQUDWHFDQEHUHGXFHGZLWKDQWLELRWLFSURSK\OD[LV
&OHDQVXUJHU\
1RYLVFXVRSHQHGHJKHUQLDUHSDLU
,QIHFWLRQUDWHW\SLFDOO\
&OHDQFRQWDPLQDWHG
9LVFXVRSHQHGEXWQRVSLOODJHRIJXWFRQWHQWVHJULJKWKHPLFROHFWRP\
,QIHFWLRQUDWHXVXDOO\
&RQWDPLQDWHG
9LVFXVRSHQHGZLWKLQIODPPDWLRQRUVSLOODJHRIFRQWHQWVHJFROHFWRP\IRUREVWUXFWLRQ
,QIHFWLRQUDWH
'LUW\
,QWUDSHULWRQHDODEVFHVVIRUPDWLRQRUYLVFHUDOSHUIRUDWLRQ
,QIHFWLRQUDWH
3URSK\OD[LVLVWKHXVHRIDQWLELRWLFVWRSUHYHQWLQIHFWLRQ
7UHDWPHQWLVWKHLUXVHWRHUDGLFDWHHVWDEOLVKHGVHSVLV
3URSK\OD[LVLPSRUWDQWLQ
6XUJHU\ZLWKDKLJKLQFLGHQFHRISRVWRSHUDWLYHLQIHFWLRQHJFRORQLFVXUJHU\
6XUJHU\ZKHUHLQIHFWLRQZRXOGEHKD]DUGRXVHJSURVWKHWLFYDOYHV
1HHGWRFRQVLGHU
7KHXVHRIDQDSSURSULDWHDQWLELRWLFEDVHGRQOLNHO\EDFWHULDDQGWLVVXHSHQHWUDWLRQ
&HIXUR[LPH PHWURQLGD]ROHIRUFRORQLFVXUJHU\
%HQ]\OSHQLFLOOLQIRUSHULSKHUDOYDVFXODUVXUJHU\
7LPLQJDQGGXUDWLRQRIDGPLQLVWUDWLRQ
,QWUDYHQRXVDGPLQLVWUDWLRQDWLQGXFWLRQ
1XPEHURIGRVHV XVXDOO\QRPRUHWKDQWKUHHGRVHV
18
%LEOLRJUDSK\
+RUDQ7& *D\QHV53 0DUWRQH:- -DUYLV:5 (PRQ7* &'&GHILQLWLRQVRIQRVRFRPLDOVXUJLFDO

VLWHLQIHFWLRQV DPRGLILFDWLRQRI&'&GHILQLWLRQVRIVXUJLFDOZRXQGLQIHFWLRQV $P-,QIHFW
&RQWURO
0F'RQDOG0*UDEVFK(0DUVKDOO&)RUEHV$6LQJOH YHUVXVPXOWLSOHGRVHDQWLPLFURELDOSURSK\OD[LV
IRUPDMRUVXUJHU\DV\VWHPDWLFUHYLHZ$XVW1=-6XUJ
19
$VHSVLVDQGDQWLVHSVLV
+LVWRU\
6HPPHOZHLVLGHQWLILHVVXUJHRQVKDQGVDVURXWHRIVSUHDGRISXHUSHUDOLQIHFWLRQ
/LVWHULQWURGXFHVKDQGDQGZRXQGDVHSVLVZLWKWKHXVHRIFDUEROLFDF LG
YRQ%HUJPDQQLQYHQWVWKHDXWRFODYH
'HILQLWLRQV
$VHSVLVLVSURFHGXUHWRUHGXFHWKHULVNRIEDFWHULDOFRQWDPLQDWLRQ
8VXDOO\LQYROYHV
7KHXVHRIVWHULOHLQVWUXPHQWV
7KHXVHRIDJORYHGQRWRXFKWHFKQLTXH
$QWLVHSVLVLVWKHUHPRYDORIWUDQVLHQWPLFURRUJDQLVPVIURPWKHVNLQDQGDUHGXFWLRQLQWKH
UHVLGHQWIORUD
3UHRSHUDWLYHVNLQSUHSDUDWLRQ
6NLQVKDYLQJ
$HVWKHWLFDQGPDNHVVXUJHU\VXWXUHDQGGUHVVLQJUHPRYDOHDVLHU
:RXQGLQIHFWLRQUDWHORZHVWZKHQSHUIRUPHGLPPHGLDWHO\SULRUWRVXUJHU\
,QIHFWLRQUDWHLQFUHDVHGIURPWRLISHUIRUPHGPRUHWKDQKRXUVSULRUWRVXUJHU\
$EUDVLRQVFDQFDXVHFRORQLVDWLRQZKLFKFDQOHDGWRZRXQGLQIHFWLRQ
&OLSSHUVRUGHSLODWRU\FUHDPVUHGXFHLQIHFWLRQUDWHVWROHVVWKDQ
6NLQSUHSDUDWLRQ
,VRSURS\ODOFRKRO
$FWVE\GHQDWXULQJSURWHLQV
,VEDFWHULFLGDOEXWVKRUWDFWLQJ
(IIHFWLYHDJDLQVWJUDPSRVLWLYHDQGJUDPQHJDWLYHRUJDQLVPV
$OVRIXQJLFLGDODQGYLUXFLGDO
&KORUKH[LGLQH
4XDWHUQDU\DPPRQLXPFRPSRXQG
$FWVE\GLVUXSWLQJWKHEDFWHULDOFHOOZDOO
%DFWHULFLGDOEXWGRHVQRWNLOOVSRUHIRUPLQJRUJDQLVPV
,WLVSHUVLVWHQWDQGKDVDORQJGXUDWLRQRIDFWLRQXSWRKRXUV
0RUHHIIHFWLYHDJDLQVWJUDPSRVLWLYHRUJDQLVPV
3RYLGRQH LRGLQH
$FWVE\R[LGDWLRQVXEVWLWXWLRQRIIUHHLRGLQH
%DFWHULFLGDODQGDFWLYHDJDLQVWVSRUHIRUPLQJRUJDQLVPV
(IIHFWLYHDJDLQVWERWKJUDPSRVLWLYHDQGJUDPQHJDWLYHRUJDQLVPV
5DSLGO\LQDFWLYDWHGE\RUJDQLFPDWHULDOVXFKDVEORRG
3DWLHQWVNLQVHQVLWLYLW\LVRFFDVLRQDOO\DSUREOHP
1RHYLGHQFHWKDWRQHLVVXSHULRUWRDQ\RWKHU
2FFOXVLYHDGKHVLYHGUDSHV
1RHYLGHQFHWKDWWKH\UHGXFHLQIHFWLRQUDWH
0D\DFWXDOO\LQFUHDVHVNLQEDFWHULDOFRXQWGXULQJVXUJHU\
20
6WHULOLVDWLRQDQGGLVLQIHFWLRQ
6WHULOLVDWLRQ
UHPRYDORIYLDEOHPLFURRUJDQLVPVLQFOXGLQJVSRUHVDQGYLUXVHV
&DQEHDFKLHYHGE\
$XWRFODYHV
+RWDLURYHQV
(WK\OHQHR[LGH
/RZWHPSHUDWXUHVWHDPDQGIRUPDOGHK\GH
6SRULFLGDOFKHPLFDOV
,UUDGLDWLRQ
*DVSODVPD
$XWRFODYHV
6WHDPXQGHUSUHVVXUHKDVDKLJKHUWHPSHUDWXUHWKDQ q&
7REHHIIHFWLYHDJDLQVW YLUXVHVDQGVSRUHIRUPLQJEDFWHULDQHHGWR
+DYHVWHDPLQGLUHFWFRQWDFWZLWKPDWHULDO
9DFXXPKDVWREHFUHDWHG
1HHGWRDXWRFODYHIRUPLQDWq&RUPLQDWq&
&KHFNSHUIRUPDQFHE\FRORXUFKDQJHVRQLQGLFDWRUWDSH
$XWRFODYHVDUHKLJKO\HIIHFWLYHDQGLQH[SHQVLYH
8QVXLWDEOHIRUKHDWVHQVLWLYHREMHFWV
+RWRYHQV
,QHIILFLHQWFRPSDUHGWRDXWRFODYHV
5HTXLUHWHPSHUDWXUHVRIq&IRUKRXUVRUq&IRUPLQ
(WK\OHQHR[LGH
+LJKO\SHQHWUDWLYHDQGDFWLYHDJDLQVWEDFWHULDVSRUHVDQGYLUXVHV
$OVRIODPPDEOHWR[LFDQGH[SHQVLYH
/HDYHVWR[LFUHVLGXHRQVWHULOLVHGLWHPV
,QVWUXPHQWVWKHUHIRUHQHHGWREHVWRUHGIRUSURORQJHGSHULRGEHIRUHXVH
6XLWDEOHIRUKHDWVHQVLWLYHLWHPV
6SRULFLGDOFKHPLFDOV
2IWHQXVHGDVGLVLQIHFWDQWVEXWFDQDOVRVWHULOLVHLQVWUXPHQWV LIXVHGIRUSURORQJHGSHULRG
,QH[SHQVLYHDQGVXLWDEOHIRUKHDWVHQVLWLYHLWHPV
7R[LFDQGLUULWDQWV
*OXWHUDOGHK\GHLVPRVWZLGHO\XVHGOLTXLGVSRULFLGDOFKHPLFDO
0RVWEDFWHULDDQGYLUXVHVNLOOHGZLWKLQPLQXWHV
6SRUHVFDQVXUYLYHVHYHUDOKRXUV
,UUDGLDWLRQ
*DPPDUD\VDQGDFFHOHUDWHGHOHFWURQVDUHH[FHOOHQWDWVWHULOLVDWLRQ
8VHGDVDQLQGXVWULDOUDWKHUWKDQKRVSLWDOEDVHGPHWKRG
'LVLQIHFWLRQ
DUHGXFWLRQLQWKHQXPEHURIYLDEOHRUJDQLVPV
&DQEHDFKLHYHGE\
/RZWHPSHUDWXUHVWHDP
%RLOLQJZDWHU
21
&KHPLFDOGLVLQIHFWDQWV
/RZWHPSHUDWXUHVWHDP
0RVWEDFWHULDDQGYLUXVHVDUHNLOOHGE\H[SRVXUHWRPRLVWKHDW
8VXDOO\DFKLHYHGZLWKGU\VDWXUDWHGVWHDPDW q&IRUJUHDWHUWKDQPLQXWHV
(IIHFWLYHDQGUHOLDEOHDQGVXLWDEOHIRULQVWUXPHQWZLWK DOXPHQ
8QVXLWDEOHIRUKHDWVHQVLWLYHLWHPV
&KHPLFDOGLVLQIHFWDQWV
'HVWUR\VPLFURRUJDQLVPVE\FKHPLFDORUSK\VLFRFKHPLFDOPHDQV
'LIIHUHQWRUJDQLVPVYDU\LQWKHLUVHQVLWLYLW\
*UDPSRVLWLYH KLJKO\VHQVLWLYH
*UDPQHJDWLYH UHODWLYHO\UHVLVWDQW
&ORVWULGLDO P\FREDFWHULDOVSHFLHV YHU\UHVLVWDQW
6ORZYLUXVHV KLJKO\UHVLVWDQW
'LVLQIHFWDQWVDUHVXLWDEOHIRUKHDWVHQVLWLYHLWHPV
/HVVHIIHFWLYHWKDQKHDW
&KHPLFDOVXVHGLQFOXGH
&OHDUVROXEOHSKHQROLFV
+\SRFKORULWHV
$OFRKROV
4XDWHUQDU\DPPRQLXPFRPSRXQGV
22
7HWDQXV
/HVVWKDQFDVHVSHU\HDUUHSRUWHGHDFK\HDULQWKH8.
6HHQIROORZLQJGHHSRUSHQHWUDWLQJZRXQGLQUHODWLYHO\DYDVFXODUDUHDV
0RUHSUHYDOHQWLQGHYHORSLQJFRXQWULHV
6HHQLQQHRQDWHWHWDQXVQHRQDWXUXPIROORZLQJWKHXVHRIFRZGXQJRQWKHXPELOLFXV
0LFURELRORJ\
'XHWR&ORVWULGLXPWHWDQL
*UDPSRVLWLYHVSRUHIRUPLQJURG
7\SLFDO
GUXPVWLFN
DSSHDUDQFHZLWKWHUPLQDOVSRUH
:LGHO\IRXQGLQWKHHQYLURQPHQWDQGVRLO
$VWULFWDQDHUREHWKDWSURGXFHVDSRZHUIXOH[RWR[LQV
([RWR[LQLVUHVLVWDQWWRDXWRFODYLQJ
([RWR[LQLVQRWDQWLJHQLFDQGUHSHDWLQIHFWLRQFDQRFFXU
,QIHFWLRQSURGXFHVIHZVLJQVRIORFDOLQIODPPDWLRQ
3DWKRJHQHVLV
*HUPLQDWLRQRIVSRUHVUHOHDVHVWKHH[RWR[LQ
7R[LQDIIHFWVQHUYRXVV\VWHPDQGUHDFKHV&16YLDWKHSHULSKHUDOQHUY HV
$FWVRQSUHV\QDSWLFWHUPLQDOVRILQKLELWRUQHUYHV
5HGXFHVWKHUHOHDVHRILQKLELWRU\QHXURWUDQVPLWWHUVHJJO\FLQH
([FHVVDFWLYLW\RIPRWRUQHXURQHVSURGXFHVPXVFOHVSDVP
&OLQLFDOIHDWXUHV
)DFLDOPXVFOHVSDVPSURGXFHVWULVPXV
7\SLFDOIDFLDODSSHDUDQFH
ULVXVVDUGRQLFXV
%DFNPXVFOHVSDVPSURGXFHVRSLVWKRWRPRXV
(YHQWXDOO\H[KDXVWLRQDQGUHVSLUDWRU\IDLOXUHOHDGVWRGHDWK
7KHGLDJQRVLVLVHVVHQWLDOO\FOLQLFDO
'LIIHUHQWLDWLQJEHWZHHQFRQWDPLQDWLRQDQGLQIHFWLRQRQZRXQGVZDEVLVGLIILFXOW
7UHDWPHQW
3UHYHQWLRQ
7HWDQXVFDQEHSUHYHQWHGE\
$FWLYHLPPXQLVDWLRQZLWKWHWDQXVWR[RLGZLWKERRVWHUHYHU\\HDUV
$GHTXDWHZRXQGWRLOHWRIFRQWDPLQDWHGZRXQGV
&RQVLGHUSDVVLYHLPPXQLVDWLRQZLWKK\SHULPPXQHLPPXQRJOREXOLQ
7UHDWPHQW
,QVXVSHFWHGFDVHV
3DVVLYHLPPXQLVDWLRQZLWKDQWLWHWDQXVLPPXQRJOREXOLQ
$GHTXDWHZRXQGGHEULGHPHQW
,QWUDYHQRXVEHQ]\OSHQLFLOOLQ
,QWHQVLYHFDUHVXSSRUW
'HVSLWHWKHXVHRI,78PRUWDOLW\LVDERXW
23
%LEOLRJUDSK\
+ROODQGHU-(6LQJHU$-/DFHUDWLRQPDQDJHPHQW $QQ(PHUJ0HG
24
*DVJDQJUHQH
&ORVWULGLDOVSRUHVDUHZLGHO\GLVWULEXWHGLQWKHHQYLURQPHQW
0D\HQWHUWUDXPDWLFRUVXUJLFDOZRXQGV
&RQWDPLQDWLRQPD\DOVRRFFXUIURPSDWLHQWVRZQIDHFDOIORUD
0LFURELRORJ\
*DVJDQJUHQHUHVXOWVIURPWKHIROORZLQJFORVWULGLDOVSHFLHV
&ORVWULGLXPZHOFKLL
&ORVWULGLXPRHGPDWLHQV
&ORVWULGLXPVHSWLFXP
0LFURVFRS\RIZRXQGH[XGDWHVKRZVJUDPSRVLWLYHEDFLOOL
5HFWDQJXODUVKDSHZLWKRXWVSRUHIRUPDWLRQ
$QDHURELFFXOWXUHRQEORRGDJDUVKRZKDHPRO\WLFFRORQLHV &ORVWULGLXPZHOFKLL
6WRUP\
FORWUHDFWLRQZLWKOLWPXVPLON
&ORVWULGLXPZHOFKLLDOVRVKRZVSRVLWLYH1DJOHUUHDFWLRQ
'XHWROHFLWKLQDVHUHDFWLRQRIDOSKDH[RWR[LQ
)LJXUH 7KH1DJOHUUHDFWLRQ
&OLQLFDOIHDWXUHV
3DWLHQWVDUHJHQHUDOO\WR[LFDQGXQZHOO
2IWHQKDYHIHDWXUHVRIVKRFNMDXQGLFHKDHPRO\VLVRUDFXWHUHQDOIDLOXUH
/RFDOVLJQVRIJDVJDQJUHQHLQFOXGH
0\RVLWLVRUP\RQHFURVLV
*DVIRUPDWLRQZLWKSDOSDEOHFUHSLWXV
0RWWOHGGLVFRORXUDWLRQRIWKHRYHUO\LQJVNLQ
3ODLQ;UD\RIWHQVKRZVJDVLQWKHVXEFXWDQHRXVWLVVXHDQGIDVFLDOSODLQV
7UHDWPHQW
)DLOXUHRIUHFRJQLWLRQRIWHQUHVXOWVLQUDSLGGHWHULRUDWLRQ
3DWLHQWVUHTXLUHDGHTXDWHUHVXVFLWDWLRQ
'HEULGHPHQWRUDPSXWDWLRQVKRXOGEHFRQVLGHUHGWRUHPRYHDIIHFWHGWLVVXHRUOLPE
2UJDQLVPVDUHXVXDOO\VHQVLWLYHWRSHQLFLOOLQ
+\SHUEDULFR[\JHQPD\EHKHOSIXO
25
3UHYHQWLRQ
%HQ]\OSHQLFLOOLQDQWLELRWLFSURSK\OD[LVLQWKRVHZLWK
&RQWDPLQDWHGZRXQGV
'LDEHWLFXQGHUJRLQJHOHFWLYHSHULSKHUDOYDVFXODUVXUJHU\
%LEOLRJUDSK\
&KDSQLFN(/$EWDU(/1HFURWLVLQJVRIWWLVVXHLQIHFWLRQ,QIHFW'LV&OLQ1RUWK$P
1LFROOV5/6PLWK-:$QDHUREHVIURPDVXUJLFDOSHUVSHFWLYH &OLQ,QIHFW'LV 6XSSO
66
8UVFKHO-'1HFURWLVLQJVRIWWLVVXHLQIHFWLRQV3RVWJUDG0HG-
26
3VHXGRPHPEUDQRXVFROLWLVLVGXHLQIHFWLRQE\&ORVWULGLXPGLIILFOH
$JUDPSRVLWLYHDQDHURELFEDFLOOXV
1RWLGHQWLILHGXQWLOEHFDXVHLWZDV
GLIILFXOW
WRFXOWXUH
6SRUHVDUHFRPPRQO\IRXQGLQWKHKRVSLWDOHQYLURQPHQW
3DWKRSK\VLRORJ\
1RUPDOVWRROFRQWDLQV!GLIIHUHQWEDFWHULDDWDFRQFHQWUDWLRQRI
$QWLELRWLFWKHUDS\FDQFKDQJHWKHIDHFDOIORUD
%URDGVSHFWUXPDQWLELRWLFVDUHPDLQFXOSULWV
3DUWLFXODUSUREOHPZLWKOLQFRP\FLQDQGFOLQGRP\FLQ EXWUDUHO\XVHG
$OORZVFRORQLVDWLRQE\&GLIILFOH WUDQVPLWWHGE\WKHIDHFDORUDOURXWH
([RWR[LQV7R[LQ$ %SURGXFHGE\EDFWHULDDUHF\WRWR[LF
$FWYLDFHOOPHPEUDQHUHFHSWRUV
3URGXFHVPXFRVDOLQIODPPDWLRQDQGFHOOGDPDJH
,IVHYHUHHSLWKHOLDOQHFURVLVDSVHXGRPHPEUDQHLVIRUPHG
&RQVLVWVRIPXFLQILEULQOHXFRF\WHVDQGFHOOXODUGHEULV

SHUJUDP
&OLQLFDOIHDWXUHV
RIQHRQDWHVDUHWUDQVLHQWKHDOWK\FDUULHUVRI &GLIILFOH
2QO\RIDGXOWVDUHDOVRDV\PSWRPDWLFFDUULHUV
SDWLHQWVRQDQWLELRWLFVGHYHORSGLDUUKRHD
2QO\GHYHORSSVHXGRPHPEUDQRXVFROLWLV
7KHVSHFWUXPRIV\PSWRPDWLFGLVHDVHLQFOXGHV
0LOGGLDUUKRHD
&ROLWLVZLWKRXWSVHXGRPHPEUDQHIRUPDWLRQ
)XOPLQDQWFROLWLV
'LDJQRVLVLVFRQILUPHGE\WKHGHWHFWLRQRIWR[LQLQWKHVWRROE\(/,6$
7UHDWPHQW
$V\PSWRPDWLFFDUULHUVUHTXLUHQRDFWLYHWUHDWPHQW
7KRVHZLWKPLOGGLDUUKRHDVKRXOGKDYHWKHLUDQWLELRWLFVVWRSSHG
,IFROLWLVSUHVHQWQHHGDFWLYHWUHDWPHQWZLWKRUDODQWLELRWLFV
0HWURQLGD]ROH ILUVWOLQHWKHUDS\
9DQFRP\FLQ VHFRQGOLQHWKHUDS\
6\PSWRPVXVXDOO\LPSURYHZLWKLQKRXUV
0D\WDNHGD\VIRUGLDUUKRHDWRVWRS
3VHXGRPHPEUDQRXVFROLWLVUHTXLUHVDJJUHVVLYHUHVXVFLWDWLRQDQGWUHDWPHQW
,IIXOPLQDQWFROLWLVZLWKWR[LFPHJDFRORQRUSHUIRUDWLRQVXUJHU\PD\EHQHFHVVDU\
SDWLHQWVUHODSVHDIWHULQLWLDOWUHDWPHQW
'XHWRHLWKHUIDLOXUHRIHUDGLFDWLRQRUUHLQIHFWLRQ
%LEOLRJUDSK\
.HOO\&33RWKRXODNLV&/DPRQW-7&ORVWULGLXPGLIILFOHFROLWLV 1 (QJO-0HG
&OHDU\5.&ORVWULGLXPGLIILFOHDVVRFLDWHGGLDUUKHDDQGFROLWLV'LV&RORQ5HFWXP
27
7XEHUFXORVLV
7XEHUFXORVLVLVFRPPRQWKURXJKRXWWKHZRUOG
&DXVHVVLJQLILFDQWPRUELGLW\DQGPRUWDOLW\SDUWLFXODUO\LQ$IULFDDQG$VLD
2YHUFDVHVSHU\HDURFFXULQ8QLWHG.LQJGRP
$FFRXQWVIRUGHDWKVPDLQO\LQLPPLJUDQW$VLDQSRSXODWLRQ
8VXDOO\GXHWR0\FREDFWHULXPWXEHUFXORVLV RU0\FREDFWHULXPERYLV LQIHFWLRQ
3ULPDU\WXEHUFXORVLV
8VXDOO\DUHVSLUDWRU\LQIHFWLRQWKDWRFFXUVLQFKLOGKRRG
,QIHFWLRQUHVXOWVLQVXESOHXUDO*KRQIRFXVDQGPHGLDVWLQDOO\PSKDGHQRSDWK\
5HJDUGHGDVWKHSULPDU\FRPSOH[
6\PSWRPVDUHRIWHQIHZ
5HVROXWLRQRILQIHFWLRQXVXDOO\RFFXUV
&RPSOLFDWLRQVLQFOXGH
+DHPDWRJHQRXVVSUHDGFDXVLQJPLOLDU\7%DIIHFWLQJOXQJVERQHVMRLQWVPHQLQJHV
'LUHFWSXOPRQDU\VSUHDGUHVXOWLQJLQ7%EURQFKRSQHXPRQLD
3RVWSULPDU\WXEHUFXORVLV
2FFXUVLQDGROHVFHQFHRUDGXOWOLIH
'XHWRUHDFWLYDWLRQRILQIHFWLRQRUUHSHDWH[SRVXUH
5HVXOWVLQPRUHVLJQLILFDQWV\PSWRPV
5HDFWLYDWLRQPD\EHDVVRFLDWHGZLWKLPPXQRVXSSUHVVLRQHJGUXJVRU+,9LQIHFWLRQ
3XOPRQDU\LQIHFWLRQDFFRXQWVIRURIFDVHVRISRVWSULPDU\7%
8VXDOO\DIIHFWVDSLFHVRIXSSHURUORZHUOREHV
&DYLWDWLRQRILQIHFWLRQLQWR WKHEURQFKLDOWUHHUHVXOWVLQ
RSHQ
7%
&OLQLFDOIHDWXUHVLQFOXGHFRXJKKDHPRSW\VLVPDODLVHZHLJKWORVVDQGQLJKWVZHDWV
,QIHFWLRQRIO\PSKJODQGVUHVXOWVLQGLVFUHWHILUPDQGSDLQOHVVO\PSKDGHQRSDWK\
&RQIOXHQFHRILQIHFWHGJODQGVFDQUHVXOWLQD
FROG
DEVFHVV
,QIHFWLRQRIWKHXULQDU\WUDFWFDQFDXVHKDHPDWXULDDQG
VWHULOHS\XULD
,QYHVWLJDWLRQV
/DUJHYROXPHVSHFLPHQVVKRXOGEHFROOHFWHGSUHIHUDEO\LQWKHHDUO\PRUQLQJ
5HSHDWHGVDPSOHVPD\EHUHTXLUHG
0LFURVFRS\
,I0\FREDFWHULDLQIHFWLRQVXVSHFWHGVDPSOHVVKRXOGEHVXEPLWWHGWRD=LHKO1HHOVHQVWDLQ
0\FREDFWHULDDSSHDUDVUHGDFLGDOFRKROIDVWRUJDQLVPV
2UJDQLVPVDOVRIOXRUHVFHZLWKDXUDPLQHVWDLQLQJ
1HJDWLYHPLFURVFRS\GRHVQRWH[FOXGHWXEHUFXORVLV
1HHGVXSSRUWLQJKLVWRORJLFDOH[DPLQDWLRQDQGPLFURELRORJLFDOFXOWXUH
&XOWXUH
0\FREDFWHULDFDQEHGLIILFXOWWRFXOWXUH
1HHGWR
&ROOHFWDGHTXDWHDQGUHOHYDQWVSHFLPHQVHJHDUO\PRUQLQJXULQH[
&RQFHQWUDWLRQRIVSHFLPHQHJFHQWULIXJDWLRQ
'HFRQWDPLQDWLRQWRUHPRYHRWKHURUJDQLVPVHJ3HWURIIPHWKRG
&XOWXUHRQ/RZHQVWHLQ-HQVHQPHWKRGDWq IRUDWOHDVWZHHNV
&RQILUPWKDWDQ\0\FREDFWHULDFXOWXUHVDUHSDWKRORJLFDO
+LVWRORJ\
28
+LVWRORJLFDOH[DPLQDWLRQVKRZVHYLGHQFHRIDGHOD\HGK\SHUVHQVLWLYLW\UHDFWLRQ
&ODVVLFDODSSHDUDQFHLVRIFDHVHDWLQJQHFURVLV
7XEHUFXORXVIROOLFOHFRQVLVWVRIFHQWUDOFDVHDRXVQHFURVLV
6XUURXQGHGE\O\PSKRF\WHVPXOWLQXFOHDWHJLDQWFHOOVDQGHSLWKHORLGPDFURSKDJHV
2UJDQLVPVPD\EHLGHQWLILHGZLWKLQWKHPDFURSKDJHV
6NLQWHVWV
'HOD\HGK\SHUVHQVLWLYLW\UHDFWLRQXVHGWRGLDJQRVHWXEHUFXORVLV
7KHWZRFRPPRQHVWWHVWVDUHWKH0DQWRX[DQG+HDIWHVW
,QWKH0DQWRX[WHVWPORISXULILHGSURWHLQGHULYDWLYHLVLQMHFWHGLQWUDGHUPDOO\
3RVLWLYHUHDFWLRQLVDSDSXOHRI!PPGLDPHWHUDWKRXUV
,QWKH+HDIWHVW SXULILHGSURWHLQGHULYDWLYHLVSODFHGRQWKHVNLQ
$JXQLVXVHGWRSURGXFHPXOWLSOHSXQFWXUHV
3RVLWLYHUHDFWLRQLVPRUHWKDQSDSXOHVDWSXQFWXUHVLWHVDWKRXUV
3RVLWLYHVNLQWHVWDUHLQGLFDWLYHRIDFWLYHLQIHFWLRQRUSUHYLRXV%&*YDFFLQDWLRQ
7UHDWPHQW
)LUVWOLQHFKHPRWKHUDSHXWLFDJHQWVDUHULIDPSLFLQLVRQLD]LGDQGHWKDPEXWRO
*LYHQDV
WULSOHWKHUDS\
IRUILUVWPRQWKVXQWLOVHQVLWLYLWLHVDYDLODEOH
5LIDPSLFLQDQGLVRQLD]LGDUHWKHXVXDOO\FRQWLQXHGIRUIXUWKHUPRQWKV
/HVVWKDQRIRUJDQLVPVDUHUHVLVWDQWWRILUVWOLQHDJHQWV
6HFRQGOLQHWUHDWPHQWLQFOXGHVS\UD]LQDPLGH
%LEOLRJUDSK\
$VWRQ12$EGRPLQDOWXEHUFXORVLV:RUOG-6XUJ
&DUO36WDUN/,QGLFDWLRQVIRUWKHVXUJLFDOPDQDJHPHQWRIJHQLWRXULQDU\WXEHUFXORVLV :RUOG- 6XUJ

.DSRRU9.$EGRPLQDOWXEHUFXORVLV3RVWJUDG0HG-
29
,QYHVWLJDWLYHDQGRSHUDWLYHSURFHGXUHV
'UDLQDJHRIVXSHUILFLDODQGGHHSDEVFHVVHV
$QDEVFHVVLVFROOHFWLRQRISXVZLWKLQVRIWWLVVXHV
2FFXUVZKHQKRVWVUHVSRQVHWRLQIHFWLRQLVLQDGHTXDWH
3UHGLVSRVLQJIDFWRUVLQFOXGHIRUHLJQERGLHVKDHPDWRPDIRUPDWLRQDQGSRRUEORRGVXSSO\
3DWKRORJ\
$QDEVFHVVFRQWDLQVEDFWHULDDFXWHLQIODPPDWRU\FHOOVSURWHLQH[XGDWHDQGQHFURWLFWLVVXH
,WLVVXUURXQGHGE\JUDQXODWLRQ WLVVXHWKH
S\RJHQLFPHPEUDQH

7KHRUJDQLVPVXVXDOO\LQYROYHGDUH
,QVXSHUILFLDODEVFHVVHV 6WDSKDXUHXV6WUHSS\RJHQHV
,QGHHSDEVFHVVHV *UDPQHJDWLYHVSHFLHVHJ(FROLDQGDQDHUREHVHJ%DFWHURLGHV
&OLQLFDOIHDWXUHV
6XSHUILFLDODEVFHVVHVLQFOXGHLQIHFWHGVHEDFHRXVF\VWVEUHDVWDQGSLORQLGDODEVFHVVHV
6KRZFDUGLQDOIHDWXUHVRILQIODPPDWLRQ FDORUUXERUGRORUWXPRU
+HDWUHGQHVVSDLQDQGVZHOOLQJ
$IWHUDIHZGD\VVXSHUILFLDODEVFHVVXVXDOO\
SRLQW
DQGDUHIOXFWXDQW
'HHSDEVFHVVHVLQFOXGHGLYHUWLFXODUVXESKUHQLFDQGDQDVWRPRWLFOHDNV
3DWLHQWVVKRZVVLJQVRILQIODPPDWLRQ VZLQJLQJS\UH[LDWDFK\FDUGLDWDFK\SQRHD
3K\VLFDOVLJQVDUHRWKHUZLVHGLIILFXOWWRGHPRQVWUDWH
6LWHRIDEVFHVVPD\QRWEHFOLQLFDOO\DSSDUHQW
5DGLRORJLFDOLPDJLQJRIWHQUHTXLUHGWRPDNHWKHGLDJQRVLV
7UHDWPHQW
$OODEVFHVVHVUHTXLUHDGHTXDWHGUDLQDJH
6KRXOGEHSHUIRUPHGXQGHUJHQHUDODQDHVWKHVLD
$QWLELRWLFVKDYHOLWWOHWRRIIHUDVWLVVXHSHQHWUDWLRQLVXVXDOO\SRRU
3URORQJHGDQWLELRWLFWUHDWPHQWFDQUHVXOWLQDFKURQLFLQIODPPDWRU\PDVVDQ
DQWLELRPD

6XSHUILFLDODEVFHVVHVDUHXVXDOO\VXLWDEOHIRURSHQGUDLQDJH
)RUGHHSDEVFHVVHVFORVHGGUDLQDJHPD\EHDWWHPSWHG
2SHQWHFKQLTXH
6XSHUILFLDODEVFHVVHVFDQXVXDOO\EHGUDLQHGWKURXJKDFUXFLDWHLQFLVLRQ
3RVLWLRQRILQFLVLRQPD\DOORZGHSHQGHGGUDLQDJH
3XVVKRXOGEHVHQWIRUPLFURELRORJ\
/RFXOLVKRXOGEHEURNHQGRZQDQGQHFURWLFWLVVXHH[FLVHG
$GUHVVLQJVKRXOGEHLQVHUWHGLQWRWKHZRXQG
3DFNLQJLVQRWUHTXLUHG LWLVSDLQIXO
&ORVHGWHFKQLTXHV
'HHSDEVFHVVFDQEHWUHDWHGE\XOWUDVRXQGRU&7JXLGHGDVSLUDWLRQ
6XFFHVVFDQQRWDOZD\VEHJXDUDQWHHG
0XOWLORFXODWHGDEVFHVVHVPD\QRWGUDLQDGHTXDWHO\
3HUFXWDQHRXVDFFHVVP\EHGLIILFXOWEHFDXVHRIWKHSRVLWLRQRIDGMDFHQWRUJDQV
%LEOLRJUDSK\
$EUDKDP1 'RXGOH0 &DUVRQ3 2SHQYHUVXVFORVHGWUHDWPHQWRIDEVFHVVHVDFRQWUROOHGFOLQLFDOWULDO

$XVW1=-6XUJ
30
&HOOXOLWLVDQGQHFURWLVLQJVRIWWLVVXHLQIHFWLRQV
&HOOXOLWLV
&HOOXOLWLVLVDVSUHDGLQJLQIHFWLRQLQWKHVXEFXWDQHRXVWLVVXH
2IWHQRFFXUVDIWHUVNLQDEUDVLRQRURWKHUVLPLODUWUDXPD
8VXDOO\GXHWRLQIHFWLRQZLWKKDHPRO\WLFVWUHSWRFRFFXV RU6WDSKDXUHXV
%RWKSURGXFHHQ]\PHVWKDWGHJUDGHWLVVXHDQGDOORZVSUHDGRILQIHFWLRQ
&OLQLFDOIHDWXUHV
&HOOXOLWLVXVXDOO\SUHVHQWVZLWKDZHOOGHPDUFDWHGDUHDRILQIODPPDWLRQ
UHGQHVVKHDWVZHOOLQJDQGSDLQ
8VXDOO\DVVRFLDWHGZLWKPDODLVHIHYHUDQGDUDLVHGZKLWHFHOOFRXQW
,IQRWUDSLGO\WUHDWHGLWFDQSURJUHVVWRO\PSKDQJLWLVDQGO\PSKDGHQLWLV
/RFDOLVHGDUHDVRIVNLQQHFURVLVPD\RFFXU
3UHGLVSRVLQJIDFWRUVLQFOXGH
/\PSKRHGHPD
9HQRXVVWDVLV
'LDEHWHVPHOOLWXV
6XUJLFDOZRXQGV
0DQDJHPHQW
5HVWDQGHOHYDWLRQRIWKHDIIHFWHGOLPE
$QWLELRWLFV
0D\LQLWLDOO\EHJLYHQRUDOO\
,QWUDYHQRXVDGPLQLVWUDWLRQLIQRUDSLGLPSURYHPHQW
%HQ]\OSHQLFLOOLQDQGIOXFOR[DFLOOLQDUHXVXDOO\DQWLELRWLFVRIFKRLFH
1HFURWLVLQJVRIWWLVVXHLQIHFWLRQV
$UHWKHUHVXOWRIVNLQDQGVXEFXWDQHRXVLQIHFWLRQVZLWKYLUXOHQWEDFWHULD
7R[LQVFDQFDXVHZLGHVSUHDGVNLQDQGIDVFLDOQHFURVLV
0HODQH\
VV\QHUJLVWLFJDQJUHQH
7KLVUHVXOWVIURPV\QHUJLVWLFLQIHFWLRQDIIHFWLQJSULQFLSDOO\WKHVNLQ
8VXDOO\RFFXUVDURXQGVXUJLFDOZRXQGVVWRPDVDQGFXWDQHRXVILVWXODH
'XHWRLQIHFWLRQZLWKERWK6WDSKDXUHXV DQGDQDHURELFVWUHSWRFRFFL
2IWHQLQLWLDOO\LQGLVWLQJXLVKDEOHIURPFHOOXOLWLV
6SUHDGVVORZO\DQGRIWHQUHVXOWVLQVNLQXOFHUDWLRQ
/DFNVWKHVHYHUHV\VWHPLFWR[LFLW\VHHQZLWKQHFURWLVLQJIDVFLWLV
0DQDJHPHQW
$QWLELRWLFVLQFOXGLQJEHQ]\OSHQLFLOOLQ
6XUJLFDOGHEULGHPHQWRIWKHDIIHFWHGDUHD
1HFURWLVLQJIDVFLWLV
2FFXUVLQLPPXQRFRPSURPLVHGSDWLHQWV
2IWHQGLDEHWLFDOFRKROLFVRULQWUDYHQRXVGUXJDEXVHUV
2FFXUVDWVHYHUDOFKDUDFWHULVWLFVLWHV
/LPEVDIWHUFXWVDEUDVLRQVRUELWHV
$URXQGSRVWRSHUDWLYHDEGRPLQDOVXUJLFDOZRXQGV
,QWKHSHULQHXPVHFRQGDU\WRDQRUHFWDOVHSVLV
,QWKHPDOHJHQLWDOLD)RXUQLHU
VJDQJUHQH
31
3RO\PLFURELDOLQIHFWLRQLQYROYLQJWKHIROORZLQJ
)DFXOWDWLYHDHUREHV
6WUHSWRFRFFDO VSHFLHVRU(FROL
$QDHUREHV
([RWR[LQVSURGXFHVHYHUHV\VWHPLFWR[LFLW\
&OLQLFDOIHDWXUHV
2IWHQSUHVHQWVVLPLODUWRFHOOXOLWLV
:DUQLQJIHDWXUHVLQFOXGH
6HYHUHSDLQ RXWRISURSRUWLRQWRWKHFOLQLFDOVLJQV
6HYHUHV\VWHPLFWR[LFLW\
&XWDQHRXVJDQJUHQH
+DHPRUUKDJLFIOXLGOHDNLQJIURPDZRXQG
8QWUHDWHGLWSURJUHVVHVWRPXOWLSOHRUJDQIDLOXUH
2YHUDOOKDVDERXWDPRUWDOLW\
;UD\PD\VKRZJDVLQWKHVXEFXWDQHRXVWLVVXH
0DQDJHPHQW
5HTXLUHVKLJKFOLQLFDOVXVSLFLRQDQGHDUO\GLDJQRVLV
3DWLHQWVVKRXOGEHPDQDJHGLQKLJKGHSHQGHQF\XQLW
1HHGIOXLGUHVXVFLWDWLRQDQGRUJDQVXSSRUW
(DUO\VXUJLFDOGHEULGHPHQWLVHVVHQWLDO
5HTXLUHVH[FLVLRQZHOOLQWRDSSDUHQWO\QRUPDOWLVVXH
$PSXWDWLRQRUIDVFLRWRPLHVPD\EHUHTXLUHG
'HIXQFWLRQLQJFRORVWRP\PD\EHUHTXLUHGIRUSHULQHDOVHSVLV
$QWLELRWLFFRYHUVKRXOGLQFOXGHEHQ]\OSHQLFLOOLQPHWURQLGD]ROHDQGJHQWDP\FLQ
+\SHUEDULFR[\JHQWKHUDS\PD\EHRIEHQHILW
%LEOLRJUDSK\
%LVQR$/6WHYHQV'/6WUHSWRFRFFDOLQIHFWLRQVRIVNLQDQGVRIWWLVVXHV 1(QJO-0HG

%XUJH76:DWVRQ-'1HFURWLVLQJIDVFLWLVEHEORRG\EROGDQGUHVROXWH%U0HG-

*UHHQ5-'DIRH'&5DIILQ7$1HFURWLVLQJIDVFLWLV &KHVW
/HZLV576RIWWLVVXHLQIHFWLRQV:RUOG-6XUJ
32
,QWHVWLQDODQGYDVFXODUDQDVWRPRVHV
*DVWURLQWHVWLQDODQDVWRPRVHV
$QDVWRPRVHVVKRZVHURVDOKHDOLQJDQGUHTXLUH
0DLQWHQDQFHRIDSSRVLWLRQ
*RRGEORRGVXSSO\
7HQVLRQIUHH
7ZROD\HUHGWHFKQLTXH
&ODVVLFWHDFKLQJRI*,DQDVWRPRVHV
,QQHUFRQWLQXRXVDOOOD\HUFDWJXWVXWXUH
2XWHUVHURPXVFXODULQWHUUXSWHGVLON
3URGXFHGVHURVDODSSRVLWLRQDQGPXFRVDOLQYHUVLRQ
,QQHUOD\HUEHOLHYHGWREHKDHPRVWDWLFEXWDOVRVWUDQJXODWHVPXFRVD
6LQJOHOD\HUHGWHFKQLTXH
0RGHUQWHDFKLQJRI*,DQDVWRPRVHV
,QWHUUXSWHGVHURPXVFXODUDEVRUEDEOHHJ9LFU\ORQURXQGERGLHGQHHGOH
,QFRUSRUDWHVVWURQJVXEPXFRVDOOD\HU
0LQLPDOGDPDJHWRVXEPXFRVDOYDVFXODUSOH[XV
'UDLQDJHRIDQDVWRPRVHVLVFRQWURYHUVLDO
1RHYLGHQFHWKDWWKHXVHRIDGUDLQUHGXFHGOHDNUDWHIRUDQDVWRPRVHVDERY HSHOYLFEULP
6WDSOHGDQDVWRPRVHV
6LGHWRVLGHDQDVWRPRVLVZLWKOLQHDUVWDSOHUVHJ*,$
(QGWRHQGDQDVWRPRVLVZLWKFLUFXODUGHYLFHVHJ&(($
6WDSOHGDQDVWRPRVHVUHGXFHGUDGLRORJLFDOO\GHWHFWHGDQDVWRPRWLFOHDNV
$VVRFLDWHGZLWKLQFUHDVHGUDWHRIDQDVWRPRWLFVWULFWXUHV
%LOLDU\DQGXURORJLFDODQDVWRPRVHV
$OZD\VXVHDEVRUEDEOHVXWXUHV
1RQDEVRUEDEOHVXWXUHVULVNVWRQHIRUPDWLRQ
9DVFXODUDQDVWRPRVHV
$OZD\VXVHQRQDEVRUEDEOH
3UROHQHPRVWRIWHQXVHG
RQDRUWDDQGRQIHPRUDODUWHU\
%LEOLRJUDSK\
&DUW\1-.HDWLQJ-&DPSEHOO-.DUDQMLD1+HDOG5-3URVSHFWLYHDXGLWRIDQH[WUDPXFRVDO
WHFKQLTXHIRULQWHVWLQDODQDVWRPRVLV %U-6XUJ
)UDVHU,,QWHVWLQDODQDVWRPRVLVZLWKDVNLQVWDSOHUDVDIHDQGHIILFLHQWPHWKRGLQK XPDQV %U-6XUJ

,UZLQ67.UXNRZVNL=+0DWKHVRQ1$6LQJOHOD\HUDQDVWRPRVLVLQWKHXSSHUJDVWURLQWHVWLQDOWUDFW%U
-6XUJ
33
6DULQ6/LJKWZRRG5*&RQWLQXRXVVLQJOHOD\HUJDVWURLQWHVWLQDODQDVWRPRVLV DSURVSHFWLYHDXGLW%U-
6XUJ
6WHHOH5-&&RQWLQXRXVVLQJOHOD\HUVHURVXEPXFRVDODQDVWRPRVLVLQWKHXSSHUJDVWURLQWHVWLQDOWUDFW %U
-6XUJ
7KRPSVRQ:+)5RELQVRQ0+(2QHOD\HUFRQWLQXRXVO\VXWXUHGFRORQLFDQDVWRPRVLV%U-6XUJ

34
$QDHVWKHVLD
/RFDODQGUHJLRQDODQDHVWKHVLD
/RFDODQDHVWKHWLFDJHQWVDFWE\UHGXFLQJPHPEUDQHSHUPHDELOLW\WRVRGLXP
$FWRQVPDOOXQP\HOLQDWHG&ILEUHEHIRUHODUJH$ILEUHV
5HGXFHSDLQDQGWHPSHUDWXUHVHQVDWLRQEHIRUHWRXFKDQGSRZHU
/LJQRFDLQH
/LJQRFDLQHLVDZHDNEDVHS. D
$WSK\VLRORJLFDOS+VPDLQO\LRQLVHG
+DVDGXUDWLRQRIDFWLRQRIDERXWRQHKRXU
:LWKDGGLWLRQRIDGUHQDOLQHGXUDWLRQRIDFWLRQFDQEHLQFUHDVHGWRKRXUV
0DLQWR[LFLW\LVRQFHQWUDOQHUYRXVDQGFDUGLRYDVFXODUV\VWHPV
3ODLQOLJQRFDLQHVKRXOGEHXVHGIRUORFDODQDHVWKHVLDLQGLJLWVDQGDSSHQGDJHV
$GUHQDOLQHFRQWDLQLQJVROXWLRQVFDQFDXVHWLVVXHLVFKDHPLD
7DEOH 0D[LPXPGRVHVRIORFDODQDHVWKHWLFDYHUDJHDGXOW
$JHQW
/LJQRFDLQH
%XSLYLFDLQH
3ULORFDLQH
3ODLQVROXWLRQ
PJPORI
PJPORI
PJPORI
6SLQDODQGHSLGXUDODQDHVWKHVLD
:LWKDGUHQDOLQH
PJPORI
PJPORI
PJPORI
6SLQDODQDHVWKHVLD ORFDODQDHVWKHWLFRURSLDWHLQWR&6)EHORZWHUPLQDWLRQRIFRUGDW/
(SLGXUDODQDHVWKHVLD ORFDODQDHVWKHWLFRURSLDWHLQWRIDWW\HSLGXUDOVSDFH
%RWKFDQSURGXFHJRRGDQDHVWKHVLDIRUXSWRKRXUV
7KHTXDOLW\RIWKHEORFNLVRIWHQEHWWHUZLWKDVSLQDO
(SLGXUDODQDHVWKHVLDLVWHFKQLFDOO\PRUHGHPDQGLQJ
&RQWUDLQGLFDWLRQV
3UHH[LVWLQJQHXURORJLFDOGLVHDVH
&RDJXORSDWK\
&RPSOLFDWLRQV
7LPLQJ
,PPHGLDWH
(DUO\
+\SRWHQVLRQ
&KDUDFWHULVWLF
+\SRWHQVLRQ
/$WR[LFLW\
+LJK%ORFNDGH
8ULQDU\UHWHQWLRQ
+HDGDFKH
/RFDOLQIHFWLRQ
0HQLQJLVP
(SLGXUDOKDHPDWRPD
%DFNDFKH
6SLQDO
&RPPRQ
5DUH
2FFDVLRQDO
&RPPRQ

$OPRVWQHYHU
8QFRPPRQ
$OPRVWQHYHU
&RPPRQ
(SLGXUDO
/HVVFRPPRQ
2FFDVLRQDO
2FFDVLRQDO
/HVVFRPPRQ
1HYHUXQOHVVGXUDOSXQFWXUH
8QFRPPRQ
9HU\UDUH
9HU\UDUH
&RPPRQ
6\PSDWKHWLFRXWIORZIRUPVSLQDOFRUGRFFXUVEHWZHHQ7DQG/
%ORFNHGWRYDU\LQJGHJUHHVLQERWKVSLQDODQGHSLGXUDODQDHVWKHVLD
7KHKLJKHUWKHEORFNWKHJUHDWHUWKHGHJUHHRIEORFNDGH
35
,QK\SRYRODHPLFSDWLHQWVWKHUHLVDJUHDWHUULVNRIK\SRWHQVLRQ
+\SRWHQVLRQGXULQJVSLQDODQGHSLGXUDODQDHVWKHVLDXVXDOO\UHTXLUHVIOXLGUHVXVFLWDWLRQ
3RVWVSLQDOKHDGDFKH
6HHQIROORZLQJEHWZHHQ RIVSLQDODQDHVWKHWLFV
8VXDOO\GXHWR&6)OHDN
,QPRVWSDWLHQWVLVVHWWOHVDIWHUDERXWGD\V
+HDGDFKHLVFKDUDFWHULVWLFDOO\RFFLSLWDO
:RUVHRQVWDQGLQJDQGUHOLHYHGE\O\LQJGRZQ
,QLWLDOWUHDWPHQWLVZLWKEHGUHVWVLPSOHDQDOJHVLDDQGIOXLGV
,ISHUVLVWVFRQVLGHU
EORRGSDWFK
3DWLHQWVRZQEORRGLQMHFWHGLQWRHSLGXUDOVSDFH
3RVWRSHUDWLYHHSLGXUDOLQIXVLRQV
2SLRLGDORQH
$OORZVRSLRLGDQDOJHVLDZLWKRXWVHGDWLRQ
1RPRWRURUV\PSDWKHWLFEORFNDGH
4XDOLW\RIDQDOJHVLDFDQKRZHYHUEH YDULDEOH
,WFKLVFRPPRQ
6HULRXVUHVSLUDWRU\GHSUHVVLRQFDQRFFXUVDIWHUVWRSSLQJLQIXVLRQ
/RFDODQDHVWKHWLFDORQH
3RWHQWLDOIRUFRPSOHWHDQDHVWKHVLD
1RVHGDWLYHHIIHFWVRUUHVSLUDWRU\GHSUHVVLRQ
6\PSDWKHWLFDQGPRWRUEORFNDGHDUHFRPPRQ
&DUGLRYDVFXODUVLGHHIIHFWVFDQRFFXU
%ORFNRFFDVLRQDOO\SDWFKRUXQLODWHUDO
&RPELQDWLRQRI/$DQGRSLRLG
6\QHUJ\EHWZHHQVLWHVRIDFWLRQ
5HGXFHGGRVHVRIERWKGUXJV
2SWLPDODQDOJHVLDSRVVLEOH
%LEOLRJUDSK\
%XJJ\'-6PLWK*(SLGXUDODQDHVWKHVLDDQGDQDOJHVLDEHWWHURX WFRPHDIWHUPDMRUVXUJHU\%U0HG-

36
*HQHUDODQDHVWKHVLD
*HQHUDODQDHVWKHVLDLVDGUXJLQGXFHGVWDWHRIXQUHVSRQVLYHQHVV
+DVWKUHHSKDVHV
,QGXFWLRQ
0DLQWHQDQFH
5HYHUVDODQGUHFRYHU\
8VXDOO\DFKLHYHGE\WKHXVHRIDFRPELQDWLRQRIDJHQWV
3UHPHGLFDWLRQ
,VWKHDGPLQLVWUDWLRQRIGUXJVSULRUWRDQDQDHVWKHWLF
+DVWKUHHSRWHQWLDOO\XVHIXOHIIHFWV
$Q[LRO\VLV
5HGXFHGEURQFKLDOVHFUHWLRQV
$QDOJHVLD
$Q[LRO\VLVLIQHHGHGFDQEHDFKLHYHGZLWKHLWKHUEHQ]RGLD]HSLQHVRUSKHQRWKLD]LQHV
2SLDWHDQDOJHVLFVDOVRKDYHXVHIXOVHGDWLYHSURSHUWLHV
5HGXFWLRQRIVHFWLRQVLVQRWDVLPSRUWDQWWRGD\ZLWKPRGHUQLQKDODWLRQDODJHQWV
(WKHUZDVQRWRULRXVIRUVWLPXODWLQJEURQFKLDOVHFUHWLRQV
,IUHTXLUHGVHFUHWLRQVFDQEHUHGXFHGZLWKK\RVFLQH
$OVRUHGXFHVDOLYDWLRQDQGSUHYHQWVEUDG\FDUGLD
$QDOJHVLDEHVWDFKLHYHGZLWKVWURQJRSLDWHV
,QGXFWLRQRIDQDHVWKHVLD
,QGXFWLRQDJHQWVDUHXVXDOO\DGPLQLVWHUHGLQWUDYHQRXVO\
'LVWULEXWHGWRRUJDQVZLWKDKLJKEORRGIORZHJEUDLQ
+LJKO\OLSLGVROXEOHDQGUDSLGO\FURVVEORRGEUDLQEDUULHU
:LWKIDOOLQJEORRGOHYHOVWKH\DUHUDSLGO\UHGLVWULEXWHGIURPEUDLQ
+DYHUDSLGRQVHWDQGZLWKRXWPDLQWHQDQFHZRXOGKDYHUDSLGUHFRYHU\
7KLRSHQWRQH
6KRUWDFWLQJEDUELWXUDWH
)LUVWXVHGDW3HDUO+DUERXULQ
'HSUHVVHVP\RFDUGLXP
,QK\SRYRODHPLFSDWLHQWFDQLQGXFHSURIRXQGK\SRWHQVLRQ
3URSRIRO
+DVYHU\VKRUWKDOIOLIH
&DQFDXVHK\SRWHQVLRQ
&DQDOVREHXVHGIRUPDLQWHQDQFHRI DQDHVWKHVLDDVDQLQIXVLRQ
5DSLGVHTXHQFHLQGXFWLRQ
5DSLGLQGXFWLRQRIDQDHVWKHVLD
&ULFRLGSUHVVXUHVXVHGWRUHGXFHULVNRIDVSLUDWLRQ
3UHVVXUHUHOHDVHGRQFHWUDFKHDOLQWXEDWLRQZLWKDFXIIHGWXEHKDVEHHQDFKLHYHG
$FKLHYHGE\WKHXVHRIWKLRSHQWRQHDQGVX[DPHWKRQLXP
8VHGIRUSDWLHQWVZLWK
1RQHIDVWHG
+LVWRU\RIJDVWURRHVRSKDJHDOUHIOX[
(PHUJHQF\WUDXPDSDWLHQWV
,QWHVWLQDOREVWUXFWLRQ
37
3UHJQDQF\
,QWUDDEGRPLQDOSDWKRORJ\WKDWZLOOGHOD\JDVWULFHPSW\LQJ
0DLQWHQDQFHRIDQDHVWKHVLD
%DODQFHGDQDHVWKHVLDKDVWKUHHDVSHFWVWRLW
+\SQRVLV VXSSUHVVLRQRIFRQVFLRXVQHVV
$QDOJHVLD VXSSUHVVLRQRISK\VLRORJLFDOUHVSRQVHVWRVWLPXOL
5HOD[DWLRQ VXSSUHVVLRQRIPXVFOHWRQHDQGUHOD[DWLRQ
$QDHVWKHVLDLVQRUPDOO\PDLQWDLQHGZLWKLQKDOHGYRODWLOHJDVHV
7KH\DUHOLSLGVROXEOHK\GURFDUERQV
7KH\KDYHKLJKVDWXUDWHGYDSRXUSUHVVXUHV
0RGHUQDJHQWVDUHSRWHQWQRQLQIODPPDEOHDQGQRQH[SORVLYH
0$& 0LQLPXPDOYHRODUFRQFHQWUDWLRQ
,WLVWKHDOYHRODUFRQFHQWUDWLRQUHTXLUHGWRNHHSRISRSXODWLRQXQUHVSRQVLYH
+DORWKDQH
3RWHQWDQDHVWKHWLFEXWSRRUDQDOJHVLFDJHQW0$&

&DQEHXVHGIRUJDVHRXVLQGXFWLRQLQFKLOGUHQ
LVPHWDEROLVHGLQWKHOLYHUDQGFDQFDXVHKHSDWLFG\VIXQFWLRQ
2FFDVLRQDOO\FDXVHVVHYHUHKHSDWLWLVWKDWFDQSURJUHVVWROLYHUQHFURVLV
'HSUHVVHGP\RFDUGLDOFRQWUDFWLOLW\DQGFDQLQGXFHDUUK\WKPLDV
,VRIOXUDQH
3RWHQWDQDHVWKHWLFEXWSRRUDQDOJHVLFDJHQW0$&

/HVVFDUGLRWR[LFEXWFDXVHVJUHDWHUUHVSLUDWRU\GHSUHVVLRQ
5HGXFHVSHULSKHUDOUHVLVWDQFHDQGFDXVHD
FRURQDU\VWHDO
)HZDGYHUVHHIIHFWVKDYHEHHQUHSRUWHG
1LWURXVR[LGH
:HDNDQDHVWKHWLFDJHQW0$&

&DQQRWEHXVHGDVDQDQDHVWKHWLFDJHQWDORQHZLWKRXWFDXVLQJK\SR[LD
9HU\SRWHQWDQDOJHVLFDJHQW
8VHGDV122 PL[WXUH
(QWRQR[
8VHGLQDQDHVWKHVLDPDLQO\IRULWVDQDOJHVLFSURSHUWLHV
0XVFOHUHOD[DQWV
0XVFOHUHOD[DQWVDUHHLWKHUGHSRODULVLQJRUQRQGHSRODULVLQJDJHQWV
'HSRODULVLQJDJHQWV
HJVX[DPHWKRQLXP
$FWUDSLGO\ZLWKLQVHFRQGVDQGODVWIRUDSSUR[LPDWHO\PLQXWHV
8VHGGXULQJLQGXFWLRQRIDQDHVWKHVLD
6LGHHIIHFWV
+LVWDPLQHUHOHDVHSURGXFLQJD
VFROLQHUDVK
%UDG\FDUGLD
6RPDWLFSDLQUHVXOWLQJIURPIDVFLFXODWLRQ
+\SHUNDODHPLD
3HUVLVWHQWQHXURPXVFXODUEORFNDGH
VFROLQHDSQRHD
$IIHFWVRISRSXODWLRQ
'XHWRSVHXGRFKROLQHVWHUDVHGHILFLHQF\
0DOLJQDQWK\SHUS\UH[LD
$IIHFWVRISRSXODWLRQ
38
'XHWRLQFUHDVHGFDOFLXPLQIOX[DQGXQFRQWUROOHGPHWDEROLVP
5DSLGLQFUHDVHLQERG\WHPSHUDWXUHZLWKLQFUHDVHG3D&2
1RQGHSRODULVLQJDJHQWV
HJYHFXURQLXP
$FWRYHUPLQXWHVDQGHIIHFWVODVWIRUPLQXWHVWRRQHKRXU
&RPSHWLWLYHDQWDJRQLVPRIDFHW\OFKROLQHUHFHSWRU
8VHGIRUPXVFOHUHOD[DWLRQ
%LEOLRJUDSK\
)R[$-5RZERWKDP'-$QDHVWKHVLD%U0HG-
39
7KHDWUHSUREOHPV
'LDWKHUP\
'LDWKHUP\LVWKHXVHRIKLJKIUHTXHQF\HOHFWULFFXUUHQWWRSURGXFHKHDW
8VHGWRHLWKHUFXWRUGHVWUR\WLVVXHRUWRSURGXFHFRDJXODWLRQ
0DLQHOHFWULFLW\LV+]DQGSURGXFHVLQWHQVHPXVFOHDQGQHUYHDFWLYDWLRQ
(OHFWULFDOIUHTXHQF\XVHGE\GLDWKHUP\LVLQWKHUDQJHRIN+]WR0+]
3DWLHQWVERG\IRUPVSDUWRIWKHHOHFWULFDOFLUFXLWEXWKDVQRHIIHFWRQPXVFOHV
0RQRSRODUGLDWKHUP\
(OHFWULFDOSODWHSODFHGRQSDWLHQWWRDFWDVLQGLIIHUHQWHOHFWURGH
&XUUHQWSDVVHVEHWZHHQLQVWUXPHQWDQGLQGLIIHUHQWHOHFWURGH
$VVXUIDFHDUHDRILQVWUXPHQWLVDQRUGHURIPDJQLWXGHOHVVWKDQWKDWRIWKHSODWH
/RFDOLVHGKHDWLQJLVSURGXFHGDWWLSRILQVWUXPHQW
0LQLPDOKHDWLQJHIIHFWSURGXFHGDWLQGLIIHUHQWHOHFWURGH
)LJXUH 0RQRSRODUGLDWKHUP\
%LSRODUGLDWKHUP\
7ZRHOHFWURGHVDUHFRPELQHGLQWKHLQVWUXPHQWHJIRUFHSV
&XUUHQWSDVVHVEHWZHHQWLSVDQGQRWWKURXJKSDWLHQW
)LJXUH %LSRODUGLDWKHUP\
40
(IIHFWVRIGLDWKHUP\
7KHHIIHFWVRIGLDWKHUP\GHSHQGVRQWKHFXUUHQWLQWHQVLW\DQGZDYH IRUPXVHG
&RDJXODWLRQ
3URGXFHGE\LQWHUUXSWHGSXOVHVRIFXUUHQWVHFRQG
8VHVVTXDUHZDYHIRUP
&XWWLQJ
3URGXFHGE\FRQWLQXRXVFXUUHQW
8VHVVLQXVZDYHIRUP
5LVNDQGFRPSOLFDWLRQV
&DQLQWHUIHUHZLWKSDFHPDNHUIXQFWLRQ
$UFLQJFDQRFFXUZLWKPHWDOLQVWUXPHQWVDQGLPSODQWV
6XSHUILFLDOEXUQVLIXVHVSLULWEDVHGVNLQSUHSDUDWLRQ
'LDWKHUP\EXUQVXQGHULQGLIIHUHQWHOHFWURGHLISODWHLPSURSHUO\DSSOLHG
&KDQQHOOLQJHIIHFWVLIXVHGRQYLVFXVZLWKQDUURZSHGLFOHHJSHQLVRUWHVWLV
%LEOLRJUDSK\
$LJQHU1)LDONR& )ULW]$:LQNV2=RFK*&RPSOLFDWLRQVLQWKHXVHRIGLDWKHUP\ %XUQV

0HPRQ0$6XUJLFDOGLDWKHUP\%U-+RVS0HG
41
/DVHUV
/DVHU /LJKW$PSOLILFDWLRQE\WKH6WLPXODWHG(PLVVLRQRI5DGLDWLRQ
/DVHUHPLVVLRQVDUH
&ROOLPDWHG SDUDOOHORXWSXWEHDPUHVXOWVLQOLWWOHHQHUJ\ORVV
&RKHUHQW ZDYHVDUHDOOLQSKDVHUHVXOWLQJLQOLWWOHORVVRIHQHUJ\
0RQRFKURPLF DOORIWKHVDPHZDYHOHQJWK
(IIHFWVRIODVHUGHSHQGVRQSKRWRFKHPLFDOSKRWRPHFKDQLFDODQGSKRWRWKHUPDOHIIHFWV
7LVVXHSHQHWUDWLRQLQFUHDVHVZLWKZDYHOHQJWK
3XOVLQJRIRXWSXWFDQUHGXFHWKHUPDOGDPDJH
8VHVRIODVHUV
/DVHU
&DUERQGLR[LGH
1HRG\PLXP<$*
1HRG\PLXP<$*
5XE\
$UJRQ
([FLPHU
/DVHUVDIHW\
:DYHOHQJWKQP

3XOVHOHQJWK
FRQWLQXRXV
FRQWLQXRXV
QV
PV
FRQWLQXRXV
QV
8VHV
WLVVXHFXWWLQJ
FRDJXODWLRQ
SRVWHULRUFDSVXORWRP\
WDWWRRUHPRYDO
FRDJXODWLRQ
SKRWRUHIUDFWLYHNHUDWRWRP\
/DVHUVDUHFODVVLILHGDFFRUGLQJWRWKHDPRXQWRIGDPDJHWKH\FDQFDXVH
&ODVV JHQHUDOO\VDIH
&ODVV VDIHZLWKLQWKHWLPHRIWKHEOLQNUHIOH[
&ODVV FDXVHEOLQGQHVVDIWHUVKRUWH[SRVXUHIURPPLUURUHGVXUIDFHV
&ODVV XQVDIHHYHQZLWKUHIOHFWLRQIURPQRQPLUURUHGVXUIDFHV
$OOPHGLFDOODVHUVEHORQJWRFODVV
%RWKSDWLHQWVDQGRSHUDWRUVUHTXLUHWRZHDUJRJJOHV
5LVNVDVVRFLDWHGZLWKODVHUV
7RSDWLHQW
([FHVVLYHEXUQLQJ
6FDUIRUPDWLRQ
9LVFHUDOSHUIRUDWLRQ
7RWKHRSHUDWRU
$FFLGHQWDOVNLQH[SRVXUH
&RUQHDORUUHWLQDOEXUQV
42
7RXUQLTXHWV
&RPPRQO\XVHGLQVXUJLFDOSUDFWLFH
:KHQSURSHUO\XVHGWKH\SURYLGHH[FHOOHQWKDHPRVWDVLV
:KHQLQFRUUHFWO\XVHGWKH\DUHGDQJHURXV
&XIIIDLOXUHFDQEHGLVDVWURXVZLWKUDSLGV\VWHPLFDEVRUSWLRQRIGUXJVHJORFDODQDHVWKHWLFV
6DIHJXDUGV
(QVXUHFRUUHFWSODFHPHQWDQGFRQQHFWLRQ
8VHDGHTXDWHSDGGLQJ
([VDQJXLQDWHOLPEEHIRUHLQIODWLRQ
8VHPLQLPDOSUHVVXUH XVXDOO\PP+JDERYHV\VWROLFEORRGSUHVVXUH
8VHIRUPLQLPDOGXUDWLRQ QRORQJHUWKDQPLQXWHV
$YRLGPXOWLSOHLQIODWLRQVRUGHIODWLRQV
%HDZDUHRIUHODWLYHFRQWUDLQGLFDWLRQVWRXVH
3UHYLRXV'97RU3(
$UWHULDOGLVHDVH
9DVFXOLWLFGLVRUGHUV
6LFNOHFHOODQDHPLD
&RPSOLFDWLRQV
1HUYHLQMXU\
9DVFXODULQMXU\
3RVWRSHUDWLYHHPEROLFHYHQWV
3RVWWRXUQLTXHWV\QGURPH
0\RJORELQXUHD
,QFUHDVHGEORRGYLVFRVLW\
,QFUHDVHGSRVWRSHUDWLYHSDLQ
7RXUQLTXHWEXUQV
%LEOLRJUDSK\
(\HUV3$VKOH\66FRWW'-7RXUQLTXHWVLQDUWHULDOE\SDVVVXUJHU\ (XU-(QGRYDVF6XUJ

43
3UHYHQWLRQRILQMXULHVLQWKHDQDHVWKHWLVHGSDWLHQW
*HQHUDODQHVWKHVLDUHPRYHVPDQ\RIWKHERGLHVQDWXUDOSUR WHFWLYHPHFKDQLVPV
,DWURJHQLFLQMXU\LVWKHUHIRUHSRVVLEOH
0DQ\RIWKHVHLQMXULHVFDQSURGXFHODVWLQJGLVDELOLW\
&DQDOVROHDGWROLWLJDWLRQ
5HFRJQLWLRQRIULVNVDQGSUHYHQWLRQLVHVVHQWLDO
,QMXULHVLQWKHDQDHVWKHWLVHGSDWLHQW
1HUYHLQMXULHV
%UDFKLDOSOH[XV
8OQDUQHUYH
5DGLDOQHUYH
&RPPRQSHURQHDOQHUYH
7LVVXHLQMXULHV
&RUQHDODEUDVLRQV
7HHWKRUFURZQV
'LDWKHUP\EXUQV
'LVORFDWLRQVRUIUDFWXUHV
$QDHVWKHWLF
'UXJUHDFWLRQV
+\SR[LD
$ZDUHQHVV
1HUYHLQMXULHV
7KHLQFLGHQFHRIQHUYHLQMXULHVLVXQNQRZQ
,Q86$DFFRXQWIRURISRVWRSHUDWLYHOLWLJDWLRQFODLPV
0RVWDUHGXHWRFDUHOHVVSRVLWLRQLQJRIWKHSDWLHQW
&RPPRQHVWQHUYHVDIIHFWHGDUHXOQDUDQGFRPPRQSHURQHDOQHUYHVDQGEUDFKLDOSOH[XV
3UHGLVSRVLQJIDFWRUVLQFOXGH
0HGLFDOFRQGLWLRQVDVVRFDLWHGZLWKDQHXURSDWK\HJGLDEHWHVPHOOLWXV
1HUYHLVFKDHPLDGXHWRK\SRWHQVLRQ
/RFDOLQMHFWLRQVRUGLUHFWQHUYHLQMXU\
7KHXVHRIDWRXUQLTXHWV
0RVWDUHGXHWRDQHXURSUD[LD
XQGHUJRFRPSOHWHUHFRYHU\
DUHOHIWZLWKUHVLGXDOZHDNQHVVRUVHQVRU\ ORVV
8OQDUQHUYH
&DXVHGE\DUPVDORQJVLGHSDWLHQWLQSURQDWLRQ
8OQDUQHUYHFRPSUHVVHGDWHOERZEHWZHHQWDEOHDQGPHGLDOHSLFRQG\OH
3UHYHQWHGE\SRVLWLRQLQJDUPVLQVXSLQDWLRQ
%UDFKLDOSOH[XV
&DXVHGE\H[FHVVLYHDUPDEGXFWLRQRUH[WHUQDOURWDWLRQ
3UHYHQWHGE\DYRLGLQJPRUHWKDQq DEGXFWLRQLISRVVLEOH
6KRXOGDYRLGDUPIDOOLQJRIIVLGHRIWDEOH
44
&RPPRQSHURQHDOQHUYH
&DXVHGE\GLUHFWSUHVVXUHRQWKHQHUYHZLWKOHJVLQOLWKRWRP\SRVLWLRQ
1HUYHFRPSUHVVHGDJDLQVWQHFNRIILEXOD
3UHYHQWHGE\DGHTXDWHSDGGLQJRIOLWKRWRP\SROHV
5DGLDOQHUYH
&DXVHGE\WRXUQLTXHWRUPLVSODFHGLQMHFWLRQLQGHOWRLGPXVFOH
3UHYHQWHGE\DGHTXDWHSDGGLQJRIWRXUQLTXHW
45
,GHDOPLQLPDODFFHVVVXUJHU\KDV
5HGXFHGWUDXPD DVVRFDLWHGZLWKDFFHVV
1RFRPSURPLVHRIH[SRVXUHRIRSHUDWLYHILHOG
6XUJHU\FDQEHSHUIRUPHGXVLQJWKHIROORZLQJDSSURDFKHV
/DSDURVFRSLF
7KRUDFRVFRSLF
(QGROXPLQDO
,QWUDDUWLFXODUMRLQWVXUJHU\
&RPELQHGDSSURDFKHV
$GYDQWDJHRIPLQLPDODFFHVVVXUJHU\
/HVVWLVVXHWUDXPD
/HVVSRVWRSHUDWLYHSDLQ
)DVWHUUHFRYHU\
)HZHUSRVWRSHUDWLYHFRPSOLFDWLRQV
%HWWHUFRVPHVLV
'LVDGYDQWDJHVRIPLQLPDODFFHVVVXUJHU\
/DFNRIWDFWLOHIHHGEDFN
,QFUHDVHGWHFKQLFDOH[SHUWLVHUHTXLUHG
3RVVLEOHORQJHUGXUDWLRQRIVXUJHU\
,QFUHDVHGULVNRILDWURJHQLFLQMXULHV
'LIILFXOWUHPRYDORIEXON\RUJDQV
0RUHH[SHQVLYH
(VWDEOLVKLQJSQHXPRSHULWRQHXP
9HUHVVQHHGOH
%OLQGSURFHGXUHZLWKSRWHQWLDOIRUFRPSOLFDWLRQV
0DMRUFRPSOLFDWLRQLVYLVFHUDORUYDVFXODUSXQFWXUH
8VXDOO\LQVHUWHGDWXPELOLFXV
$LPHGWRZDUGVWKHSHOYLV
,QWUDSHULWRQHDOSODFHPHQWFDQEHFKHFNHGE\
6DOLQHGURSWHVW
6DOLQHLQVWLOODWLRQWHVW
/RZIORZJDVLQVXIIODWLRQ
,QVXIIODWHDWOHDVWOLWUHVRI&2
(QVXUHPD[LPXPSUHVVXUHLVPP+J
,QVHUWSULPDU\SRUWWKURXJKXPELOLFXV
,QVHUWVHFRQGDU\SRUWVXQGHUGLUHFWYLVLRQ
2SHQ+DVVRQWHFKQLTXH
$QDWWHPSWWRUHGXFHWKHUDWHRIYLVFHUDOLQMXU\
&DQQXODLQVHUWHGXVLQJD
FXWGRZQ
WHFKQLTXH
6WD\VXWXUHVLQVHUWHGLQOLQHDDOEDDVFRXQWHUWUDFWLRQ
)LQJHULQVHUWHGWKURXJKSHULWRQHXPWRHQVXUHWKDWWKHUHDUHQRDGKHVLRQV
3ULPDU\SRUWLQVHUWHGXQGHUGLUHFWYLVLRQ
46
%LEOLRJUDSK\
%RQMHU+- +D]HEURHN(- .D]HPLHU* *LXIIULGD0& 0HLMHU:6 /DQJH-) 2SHQYHUVXVFORVHG

HVWDEOLVKPHQWRISQHXPRSHULWRQHXPLQODSDURVFRSLFVXUJHU\ %U-6XUJ
'DU]L$*RXOG60LQLPDOO\LQYDVLYHVXUJHU\,Q-RKQVRQ&'7D\ORU,HGV 5HFHQWDGYDQFHVLQ
6XUJHU\ &KXUFKLOO/LYLQJVWRQ
/XFDV6:$UUHJXL0(0LQLPDOO\LQYDVLYHVXUJHU\IRULQJXLQDOKHUQLD :RUOG-6XUJ

/XFN$+HQVPDQ&+HZHWW3/DSDURVFRSLFFROHFWRP\IRUFDQFHUDUHYLHZ $XVW1=-6XUJ

0D[ZHOO$UPVWURQJ&$5RELQVRQ0+6FKRILHOG-+/DSDURVFRSLFFRORUHFWDOFDQFHUVXUJHU\ -$P
&ROO6XUJ
0RQVRQ-57/DSDURVFRSLFFRORQLFVXUJHU\ %U-6XUJ
3DWHUVRQ%URZQ6(PHUJHQF\ODSDURVFRSLFVXUJHU\%U-6XUJ
47
+HSDWLWLV%
7KH+HSDWLWLV%YLUXVLVDVLQJOHVWUDQGHG'1$YLUXV
&RQVLVWVRIQP'DQHSDUWLFOH+E V$JDQGQPFRUH+E F$J
+EV$J +HSDWLWLV%VXUIDFHDQWLJHQ $XVWUDOLDDQWLJHQ
+EF$J +HSDWLWLV%FRUHDQWLJHQ
+EV$E +HSDWLWLV%VXUIDFHDQWLERG\
+EH$J +HSDWLWLV%
H
DQWLJHQ
,Q8.SUHYDOHQFHRI+E V$JSRVLWLYLW\LV
6HHQSDUWLFXODUO\LQGUXJDGGLFWVKRPRVH[XDOVGLDO\VLVSDWLHQWVDQGRFFDVLRQDOO\PHGLFDOVWDII
,Q$VLD0LGGOH(DVWDQG6RXWK$PHULFDSUHYDOHQFHEHWZHHQ
7UDQVPLWWHGE\YHUWLFDOWUDQVPLVVLRQLQRFXODWLRQRUDODQGVH[XDOFRQWDFW
,QFXEDWLRQSHULRGEHWZHHQZHHNVDQGPRQWKV
3HULRGRILQIHFWLYLW\LVIURPZHHNVEHIRUHRQVHWRIV\PSWRPVDQGSRV VLEO\LQGHILQLWHO\DIWHU
RILQIHFWHGSDWLHQWVEHFRPHFKURQLFFDUULHUV
&OLQLFDOSLFWXUHV
$FXWHKHSDWLWLVZLWKFOLQLFDOUHFRYHU\
$FXWHIXOPLQDWLQJKHSDWLWLVOHDGLQJWRGHDWK
&KURQLFDFWLYHKHSDWLWLVZLWKULVNRIFLUUKRVLVDQGKHSDWRFHOOXODUFDUFLQRPD
6HURORJLFDOUHVXOWV
+EV$JSRVLWLYH
7KHILUVWLQGLFDWRURILQIHFWLRQDQGVHHQWKURXJKRXWFRXUVHRIGLVHDVH
3HUVLVWHQFHLVPDUNHURIIDLOXUHWRFOHDULQIHFWLRQ
+EV$ESRVLWLYH
0DUNHURISURWHFWLRQGXHWRHLWKHUSUHYLRXVLQIHFWLRQRILPPXQLVDWLRQ
+EH$JSRVLWLYH
&ORVHO\DVVRFLDWHGZLWKLQIHFWLYLW\RISDWLHQW
3UHYHQWLRQRILQIHFWLRQ
$YRLGFRQWDFWZLWKYLUXV
&DUHZLWKQHHGOHVERG\IOXLGVHWF
$IWHUQHHGOHVWLFNLQMXU\IURPKLJKULVNSDWLHQW
+\SHULPPXQHDQWL+HSDWLWLV%,J*
,GHDOO\JLYHQZLWK KRXUVDIWHUH[SRVXUH
5HSHDWHGDWRQHPRQWK
,PPXQLVDWLRQ
$OOSDUDPHGLFDOVWDIIVKRXOGEHLPPXQLVHG
(QHUJL[% JLYHQDQGUHSHDWHGDWRQHDQGPRQWKV
+EV$EOHYHOV!XO DGHTXDWHUHVSRQVH
&RQIHUVSURWHFWLRQIRUXSWR\HDUV
48
+,9LQIHFWLRQ
$FTXLUHGLPPXQRGHILFLHQF\V\QGURPH$,'6ZDVILUVWUHFRJQLVHGLQWKH86$LQWKHV

+XPDQLPPXQRGHILFLHQF\YLUXV+,9ZDVLVRODWHGLQ
,Q:+2HVWLPDWHGZRUOGZLGHWKDWWKHUHZHUH
PLOOLRQQHZFDVHVRI+,9LQIHFWLRQV
PLOOLRQSHRSOHZHUHLQIHFWHGZLWK+,9
,Q8.WRGDWHKDYHEHHQ+,9SRVLWLYHDQGKDYHGHYHORSHG$,'6
,PPXQRORJ\
+,9LVDVLQJOHVWUDQGHG51$UHWURYLUXV
,WSURGXFHV'1$E\WKHXVHRIWKHHQ]\PHUHYHUVHWUDQVFULSWDV H
'1$LVWKHLQFRUSRUDWHGLQWRKRVWFHOOV
+,9LQIHFWLRQUHVXOWVLQZLGHVSUHDGLPPXQRORJLFDOG\VIXQFWLRQ
,WUHVXOWVLQDIDOOLQ&'O\PSKRF\WHVPRQRF\WHVDQGDQWLJHQSUHVHQWLQJFHOOV
,PPXQRORJLFDOG\VIXQFWLRQUHVXOWVLQRSSRUWXQLVWLFLQIHFWLRQVDQGLQFUHDVHVULVNRIPDOLJQDQF\
7KHYLUXVLVWUDQVPLWWHGLQERGLO\IOXLGVE\
+HWHURVH[XDOLQWHUFRXUVH $IULFDDQG$VLD
+RPRVH[XDOLQWHUFRXUVH 8.DQG1RUWK$PHULFD
%ORRGWUDQVIXVLRQV
,QWUDYHQRXVGUXJDEXVH
3HULQDWDOWUDQVPLVVLRQ
1DWXUDOKLVWRU\
8SWRWKUHHPRQWKVWKHUHLVRIWHQDQDV\PSWRPDWLFYLUDHPLD
3DWLHQWVDUHLQIHFWLYHGXULQJWKLVSHULRG
(/,6$WHVWIRU+,9DQWLERGLHVDUHQHJDWLYH
$WVHURFRQYHUVLRQDQDFXWHVHURFRQYHUVLRQLOOQHVV$6,FDQRFFXU
0D\EHIROORZHGE\SHUVLVWHQWJHQHUDOLVHGO\PSKDGHQRSDWK\3*,
3URJUHVVLRQWRV\PSWRPDWLFGLVHDVHRFFXUVZLWKLQVHYHUDO\HDUV
$,'6GHYHORSVZLWKLQWR\HDUV
$,'6GLDJQRVHGE\WKHSUHVHQFHRIDQ$,'6LQGLFDWRUGLVHDVHZLWKDSRVLWLYH+,9WHVW
0HGLDQVXUYLYDOZLWK$,'6LV\HDUV
$,'6LQGLFDWRUGLVHDVHV
0XOWLSOHUHFXUUHQWEDFWHULDOLQIHFWLRQV
7UDFKHDORUEURQFKLDOFDQGLGLDVLV
,QYDVLYHFHUYLFDOFDUFLQRPD
([WUDSXOPRQDU\RUGLVVHPLQDWHGFRFFLGLRGRP\FRVLV
&U\SWRVSRULGLRVLV
&\WRPHJDORYLUXVUHWLQLWLV
+,9HQFHSKDORSDWK\
'LVVHPLQDWHGRUH[WUDSXOPRQDU\KLVWRSODVPRVLV
.DSRVL
VVDUFRPD
/\PSKRPD
'LVVHPLQDWHGP\FREDFWHULRVLV
3QHXPRF\VWLVFDULQLL SQHXPRQLD
3URJUHVVLYHPXOWLIRFDOOHXNRHQFHSKDORSDWK\
&HUHEUDOWR[RSODVPRVLV
49
3KDUPDFRORJ\
2UDOFRQWUDFHSWLYHVDQG+57
&RPELQHG2&3V
5LVNRI'97LQQRQSLOOXVHU \U
QG
5LVNLQ JHQHUDWLRQ2&3FRQWDLQLQJOHYRQRUJHVWHUHOXVHU \U
UG
5LVNLQ JHQHUDWLRQ2&3GHVRJHVWHUHORUJHVWRGHQHXVHU \U
&RPELQHG2&3VLQFUHDVHWKHULVNRI'97
,QFUHDVHVHUXPSURFRDJXODQWIDFWRUV IDFWRU9,,;DQGILEULQRJHQ
5HGXFHDQWLWKURPELQ,,,
/LWWOHKDVEHHQSXEOLVKHGRQWKHVL]HRIWKHULVNLQFUHDVH
3UREDEO\LQFUHDVHVULVNE\IDFWRURIEHWZHHQDQGWLPHV
3URJHVWRJHQRQO\SLOOVGRQRWLQFUHDVHULVNRIYHQRXVWKURPERVLV
3HULRSHUDWLYHPDQDJHPHQW
0DMRUVXUJHU\DQGVXUJHU\RQOHJVHJYDULFRVHYHLQV
6WRSFRPELQHG2&3ZHHNVSULRUWRVXUJHU\
5HVWDUWZHHNVSRVWVXUJHU\ZKHQIXOO\PRELOH
0LQRUVXUJHU\ FRQWLQXH2&3
(PHUJHQF\VXUJHU\ *LYHIXOOWKURPERSURSK\OD[LVLQFOXGLQJ7('VWRFNLQJVDQGKHSDULQ
+RUPRQHUHSODFHPHQWWKHUDS\
,QFUHDVHVULVNRIYHQRXVWKURPERVLVE\EHWZHHQDQGWLPHV
2WKHUULVNIDFWRUVIRUYHQRXVWKURPERVLVLQWKLVDJHJURXS
1RHYLGHQFHWKDWVWRSSLQJ +57UHGXFHVULVN
+57FDQEHFRQWLQXHGLQSHULRSHUDWLYHSHULRG
%LEOLRJUDSK\
'UXJVLQWKHSHULRSHUDWLYHSHULRG+RUPRQDOFRQWUDFHSWLYHVDQGKRUPRQDOUHSODFHPHQWWKHUDS\ 'UXJV
DQG7KHUDSHXWLF%XOOHWLQ
1REOH':.HKOHW+5LVNVRILQWHUUXSWLQJGUXJWUHDWPHQWEHIRUHVXUJHU\%U-0HG

50
/D[DWLYHV
/D[DWLYHVFDEEHFODVVLILHGDV
%XONIRUPLQJDJHQWV
6WRROVRIWHQHUVDQGOXEULFDQWV
*DVWURLQWHVWLQDOVWLPXODQWV
2VPRWLFOD[DWLYHV
%XONIRUPLQJDJHQWV
+\GURSKLOLFDJHQWVWKDWDEVRUE+ 2
,QFUHDVHVWRROEXONVWLPXODWHUHFWDOUHIOH[HVDQGLQGXFHGHIHFDWLRQ
7KH\UHTXLUHDQDGHTXDWHRUDOIOXLGLQWDNH
7DNHVHYHUDOGD\VIRUPD[LPXPHIIHFW
&DQLQGXFHLQWHVWLQDOREVWUXFWLRQLIXVHGLQDSSURSULDWHO\LQSDWLHQWVZLWKD GKHVLRQVHWF
HJ%UDQLVSDJKXODKXVN)\ERJHO PHWK\OFHOOXORVHVWHUFXOLD1RUPDFRO
6WRROVRIWHQHUVDQGOXEULFDQWV
$FWDVOXEULFDQWVRUGHWHUJHQWV
2IWHQSURGXFHUDSLGSXUJDWLYHHIIHFW
HJ$UDFKLVRLOHQHPDVJO\FHULQVXSSRVLWRULHVGLRFW\OVRGLXP VXOSKDVXFFLQDWH
*DVWURLQWHVWLQDOVWLPXODQWV
6WLPXODWHSHULVWDOVLVDQGUHGXFH+ 2DEVRUSWLRQ
6HQQDDQGELVRFRG\ODFWRQFRORQDQGWDNHKRXUVWRSURGXFHDQHIIHFW
&DVWRURLODFWVRQVPDOOLQWHVWLQHDQGZRUNVZLWKLQKRXUV
6RGLXPSLFRVXOSKDWH3LFROD[XVHGLQUDGLRORJLFDODQGVXUJHU\ERZHOSUHSDUDWLRQ
$EXVHRIVWLPXODQWOD[DWLYHVFDQLQGXFHK\SRNDODHPLDDQGFRORQLFDWRQ\
2VPRWLFOD[DWLYHV
5HGXFH+2DEVRUSWLRQDQGLQFUHDVHSHULVWDOVLV
,QFUHDVHRVPRWLFORDGGHOLYHUHGWRODUJHLQWHVWLQH
HJ/DFWXORVHPDJQHVLXPK\GUR[LGHVRGLXPFLWUDWH0LFUROD[
/DFWXORVHLVDGLVDFFKDULGHRIJDODFWRVHDQGIUXFWRVH
+\GURO\VHGE\FRORQLFEDFWHULDLQWRDFHWLFDQGODFWLFDFLGZKLFKDUHRVPRWLFDOO\DFWLYH
7DNHVVHYHUDOGD\VWRKDYHPD[LPXPHIIHFW
51
3HULRSHUDWLYHPDQDJHPHQW 7ZR
6NLQDQGZRXQGV
:RXQGKHDOLQJ
,QIODPPDWLRQ
9DVFXODUUHVSRQVH
,QLWLDOYDVRFRQVWULFWLRQDVDGLUHFWUHVSRQVHWRWUDXPD
([SRVHGVXEHQGRWKHOLDOWLVVXHDFWLYDWHVFRDJXODWLRQDQGFRPSOHPHQWFDVFDGHV
3ODWHOHWDGKHVLRQDQGDJJUHJDWLRQFDXVHVFORWIRUPDWLRQ
'HJUDQXODWLRQRISODWHOHWVUHOHDVHVJURZWKIDFWRUVDQGFKHPRWDFWLFIDFWRUV
,QIODPPDWRU\UHVSRQVHGXHWRKLVWDPLQHDQG+7UHOHDVHSURGXFHV
9DVRGLODWDWLRQ
,QFUHDVHGFDSLOODU\SHUPHDELOLW\
0DUJLQDWLRQRIQHXWURSKLOV
&HOOXODUUHVSRQVH
0LJUDWLRQRIQHXWURSKLOVPDFURSKDJHVDQGO\PSKRF\WHV
0DFURSKDJHVSURGXFHJURZWKIDFWRUVOHDGLQJWRPLJUDWLRQRIILEUREODVWDQGHSLWKHOLDOFHOOV
7KLVFDXVHVFHOOXODUSUROLIHUDWLRQZLWKWKUHHFRPSRQHQWV
(SLWKHOLDOLVDWLRQ
&RQWUDFWLRQ
)LEURSODVLD
(SLWKHOLDOEDUULHULPSRUWDQWWRSUHYHQWLQIHFWLRQDQGPDLQWDLQIOXLGEDODQFH
$FKLHYHGE\ERWK PLJUDWLRQ DQGSUROLIHUDWLRQRIHSLWKHOLDOFHOOV
0LJUDWLRQUHTXLUHSUHVHQFHRIJUDQXODWLRQWLVVXH
:KHQHSLWKHOLDOFRYHUFRPSOHWHFRQWDFWLQKLELWLRQSUHYHQWVIXUWKHUHSLWKHOLDOJURZWK
&RQWUDFWLRQFDQDFFRXQWIRUXSWRUHGXFWLRQLQZRXQGVL]H
'XHWRP\RILEUREODVWVLQJUDQXODWLRQWLVVXH
8VXDOO\PRUHPDUNHGLQDQLPDOVWKDQLQPDQ
)LEURSODVLDGXHWRSURFROODJHQSURGXFWLRQE\ILEUREODVWV
,QWUDDQGLQWHUPROHFXODUERQGVIRUPWKH&ROODJHQILEUHVZLWKWULSOHKHOLFDOTXDWHUQDU\VWUXFWXUH
([WUDFHOOXODUPDWUL[FRQWDLQV)LEURQHFWLQDQG*O\FRVDPLQRDJO\FDQV
5HJXODWHVFROODJHQV\QWKHVLVDQGFHOOXODUGLIIHUHQWLDWLRQ
$FFRPSDQLHGE\VLPXOWDQHRXVDQJLRJHQHVLV
3UROLIHUDWLRQLVIROORZHGE\UHPRGHOOLQJ
0D[LPXPFROODJHQSURGXFWLRQRFFXUVDWGD\V
0D[LPXPZRXQGVWUHQJWKDWWRPRQWKV
,QLWLDOFROODJHQSURGXFWLRQGLVRUJDQLVHG
5HPRGHOOLQJOLQHVLWXSZLWKVWUHVVHVLQVNLQ
5HGXFHGYDVFXODULW\DQGFHOOXODULW\
52
,PSRUWDQWJURZWKIDFWRUV
3ODWHOHW'HULYHG*URZWK)DFWRUV3'*)
,QVXOLQ/LNH*URZWK)DFWRU,*)
(SLGHUPDO*URZWK)DFWRU(*)
7UDQVIRUPLQJ*URZWK)DFWRU7*)
)DFWRUVLQIOXHQFLQJZRXQGKHDOLQJ
6\VWHPLFIDFWRUV
$JHDQGVH[
1XWULWLRQ
9LWDPLQDQGWUDFHHOHPHQWGHILFLHQFLHV YLWDPLQ&YLWDPLQ$]LQF
'UXJV VWHURLGVFKHPRWKHUDS\,PPXQRVXSSUHVVLRQ
6\VWHPLFGLVHDVH GLDEHWHVMDXQGLFHPDOLJQDQF\
+\SR[LD
/RFDO)DFWRUV
%ORRGVXSSO\
,QIHFWLRQ
)RUHLJQERGLHV
6XUJLFDOWHFKQLTXH
%LEOLRJUDSK\
$SSOHWRQ*91 /HDSHU'-7KH,QIHFWHG:RXQG+RVSLWDO8SGDWH
:LOPKXUVW$':RXQGKHDOLQJDQGWKHSODVWLFVXUJHRQ,Q-RKQVRQ&'7D\ORU,HGV5HFHQW$GYDQFHV
LQ6XUJHU\(GLQEXUJK&KXUFKLOO/LYLQJVWRQ
:LWWH0%%DUEXO$*HQHUDOSULQFLSOHVRIZRXQGKHDOLQJ6XUJ&OLQ1$P
53
,QFLVLRQVDQGZRXQGFORVXUH
5HTXLUHPHQWIRUDQLQFLVLRQ
$OORZDFFHVV
&DQEHH[WHQGHGLIUHTXLUHG
:LOOEHVHFXUHZKHQFORVHG
/RZFRPSOLFDWLRQUDWH
0LQLPDOSDLQ
&RVPHWLFDSSHDUDQFHZKHQKHDOHG
:RXQGFORVXUH
0DWWHURISHUVRQDOSUHIHUHQFHLQIOXHQFHGE\H[SHULHQFH
0LGOLQHDEGRPLQDOLQFLVLRQ
0DVVFORVXUHXVLQJRUQRQDEVRUEDEOHPRQRILODPHQWVXWXUH
7DNHFPELWHSODFHGFPDSDUW
-HQNLQV5XOH
6XWXUH/HQJWK:RXQG/HQJWKVKRXOGEH
)RUVDIHW\DYRLGKDQGKHOGQHHGOHV
1RWRXFKWHFKQLTXHRIWKHXVHRIQHHGOHVVKRXOGEHXVHG
'HHS7HQVLRQ6XWXUHV XVHFRQWURYHUVLDO
1RH[WUDVHFXULW\
3DLQIXODQGSURGXFHDFRVPHWLFDOO\XQDFFHSWDEOHVFDU
2WKHUDEGRPLQDO LQFLVLRQV
/D\HUHGFORVXUH
&ORVXUHRISHULWRQHXPQRWHVVHQWLDO
6NLQ
)DWVWLWFKUHGXFHVGHDGVSDFH
$GGVQRVWUHQJWKWRZRXQGUHSDLU
1RHYLGHQFHWKDWLWUHGXFHVULVNRIZRXQGLQIHFWLRQ
$YRLGVLONVXWXUHVDVLQFUHDVHULVNRIVWLWFKDEVFHVVHV
1RHYLGHQFHWKDW VXEFXWLFXODUVXWXUHVLQFUHDVHLQIHFWLRQUDWH
,I\RXDUHZRUULHGDERXWZRXQGLQIHFWLRQFRQVLGHUOHDYLQJWKHVNLQZRXQGRSHQ
5HPRYDORIVXWXUHV
6XWXUHVVKRXOGEHUHPRYHGDW
+HDGDQGIDFH
GD\V
8SSHUOLPE
GD\V
$EGRPHQDQGORZHUOLPE
GD\V
54
6XWXUHPDWHULDOVQHHGOHVDQGGUHVVLQJV
6XWXUHPDWHULDOV
7KHSXUSRVHRIDVXWXUHLVWRKROGDZRXQGWRJHWKHULQJRRGDSSRVLWLRQXQWLOVXFKWLPHDVWKH
QDWXUDOKHDOLQJSURFHVVLVVXIILFLHQWO\ZHOOHVWDEOLVKHGWRPDNHWKHVXSSRUWIURPWKHVXWXUH
PDWHULDOXQQHFHVVDU\ DQGUHGXQGDQW
&KRLFHRIDVXWXUHZLOOGHSHQGRQ
3URSHUWLHVRIVXWXUHPDWHULDO
$EVRUSWLRQUDWHKDQGOLQJFKDUDFWHULVWLFVDQGNQRWWLQJSURSHUWLHV
6L]HRIVXWXUH
7\SHRIQHHGOH
1DWXUDOVXWXUHPDWHULDOV
$EVRUEDEOH
&DWJXW 3ODLQRUFKURPLF
1RQ$EVRUEDEOH
6LON
/LQHQ
6WDLQOHVV6WHHO:LUH
6\QWKHWLFVXWXUHPDWHULDOV
$EVRUEDEOH
3RO\JO\FROLF$FLG'H[RQ
3RO\JODFWLQ9LFU\O
3RO\GLR[RQH3'6
3RO\JO\FRQDWH0D[RQ
1RQ$EVRUEDEOH
3RO\DPLGH1\ORQ
3RO\HVWHU'DFURQ
3RO\SURS\OHQH3UROHQH
$EVRUEDEOHVXWXUHDUHEURNHQGRZQE\HLWKHU
3URWHRO\VLVHJ&DWJXW
+\GURO\VLVHJ9LFU\O'H[RQ
&DWJXW
0DGHIURPWKHVXEPXFRVDRIVKHHSJDVWURLQWHVWLQDOWUDFW
%URNHQGRZQZLWKLQDERXWDZHHN
&KURPLFDFLGGHOD\VK\GURO\VLV
(YHQVRLWLVGHVWUR\HGEHIRUHPDQ\ZRXQGVKDYHKHDOHG
6LON
6WURQJDQGKDQGOHVZHOOEXWLQGXFHVVWURQJWLVVXHUHDFWLRQ
&DSLOODULW\HQFRXUDJHVLQIHFWLRQFDXVLQJVXWXUHVLQXVHVDQGDEVFHVVHV
9LFU\O
7HQVLOHVWUHQJWK
#GD\V
#GD\V
# GD\V
55
$EVRUSWLRQFRPSOHWHE\GD\V
3'6
7HQVLOHVWUHQJWK
#GD\V
#GD\V
#GD\V
$EVRUSWLRQFRPSOHWHE\GD\V
&RPPRQHUURUVRIVXWXUHXVH
7RRPDQ\WKURZV,QFUHDVHVIRUHLJQERG\VL]H&DXVHVVWLWFKDEVFHVVHV
,QWUDFXWLFXODUUDWKHUWKDQVXEFXWLFXODUVXWXUHVFDXVLQJK\SHUWURSKLFVFDUV
+ROGLQJPRQRILODPHQWVXWXUHVZLWKLQVWUXPHQWVUHGXFHVWHQVLOHVWUHQJWKE\RYHU
+ROGLQJEXWWRIQHHGOHFDXVHVQHHGOHDQGVXWXUHEUHDNDJH
%LEOLRJUDSK\
56
6FDUVDQGFRQWUDFWXUHV
7RPLQLPLVHWKHGHJUHHRISRVWRSHUDWLYHVFDUULQJ
,QFLVLRQVVKRXOGUXQDORQJ/DQJHU
VOLQHV
7KHILQHVWVXWXUHSRVVLEOHVKRXOGEHXVHG
7HQVLRQVKRXOGEHDYRLGHG
6XWXUHVVKRXOGEHUHPRYHGDVVRRQDVSRVVLEOH
7UDXPDWLFZRXQGVVKRXOGEHFOHDQDQGHGJHVH[FLVHG
([SRVXUHWRVXQOLJKWVKRXOGEHDYRLGHGLQWKHHDUO\SRVWRSHUDWLYHSHULRG
3UREOHPDWLFVFDUV
&RQWUDFWXUHV
5HVXOWLIVFDUVVKRUWHQ
3DUWLFXODUO\VHHQLQEDGO\DOLJQHGVFDUVQRWFRUUHVSRQGLQJWR/DQJHU
VOLQHV
&DQUHGXFHMRLQWPRELOLW\
0D\UHTXLUHD]SODVW\RUVNLQJUDIW
'HSUHVVHGVFDUV
5HVXOWLIVNLQEHFRPHVDWWDFKHGWRGHHSWLVVXH
&DQEHWUHDWHGE\UHOHDVHRIQRUPDOVNLQIURPPDUJLQVRIVFDU
6FDULVWKHQGHHSLWKHOLDOLVHGDQGVNLQHGJHVFORVHGRYHUWKHWRS
.HORLGDQGK\SHUWURSKLFVFDUV
$OOVFDUVEHFRPHUHGDQGWKLFNHQHGGXULQJWKHQRUPDOKHDOLQJSURFHVV
$IWHUVHYHUDOPRQWKVPDWXUDWLRQUHVXOWVLQIODWWHQLQJRIWKHZRXQG
,QVRPHVFDUVFROODJHQIRUPDWLRQLVH[FHVVLYH
5HVXOWVLQHOHYDWHGDQGUHGVFDU
,IFRQILQHGWRZRXQG K\SHUWURSKLFVFDU
,IH[WHQGVEH\RQGZRXQGLQWRQRUPDOWLVVXH NHORLGVFDU
6HHQSDUWLFXODUO\LQSDWLHQWVRI$IUR&DULEEHDQRULJLQ
3DUWLFXODUO\DIIHFWVVFDUVRQWKHSUHVWHUQDODQGGHOWRLGDUHDV
7UHDWPHQWLVRIWHQGLIILFXOW
7UHDWPHQWRSWLRQVLQFOXGH
,QWUDOHVLRQDOVWHURLGLQMHFWLRQVHJWULDPFLQRORQH
&RPSUHVVLRQGUHVVLQJVZLWKHODVWLFDWHGFRPSUHVVLRQJDUPHQWV
6LODVWLFJHOWKHUDS\
([FLVLRQDQGUDGLRWKHUDS\
/DVHUWKHUDS\
%LEOLRJUDSK\
$KQ670RQDIR::0XVWRH7$7RSLFDOVLOLFRQHJHOIRUWKHSUHYHQWLRQDQGWUHDWPHQWRIK\SHUWURSKLF
VFDU$UFK6XUJ
2
6XOOLYDQ672
&RQQRU732
6KDXJKQHVV\0$HWLRORJ\DQGPDQDJHPHQWRIK\SHUWURSKLFVFDUV $QQ
5&ROO6XUJ
57
:RXQGGUHVVLQJV
7KH
,GHDO:RXQG'UHVVLQJ
VKRXOG
0DLQWDLQDPRLVWHQYLURQPHQWDWZRXQGLQWHUIDFH
5HPRYHH[FHVVH[XGDWHZLWKRXWDOORZLQJ
VWULNHWKURXJKWRVXUIDFHRIGUHVVLQJ
3URYLGHWKHUPDOLQVXODWLRQDQGPHFKDQLFDOSURWHFWLRQ
$FWDVDEDUULHUWRPLFURRUJDQLVPV
$OORZJDVHRXVH[FKDQJH
%HQRDGKHUHQWDQGHDVLO\UHPRYHGZLWKRXWWUDXPD
/HDYHQRIRUHLJQSDUWLFOHVLQZRXQG
%HQRQWR[LFQRQDOOHUJHQLFDQGQRQVHQVLWLVLQJ
1RVLQJOHGUHVVLQJLVDSSURSULDWHIRUDOOZRXQGW\SHVDQGDOOVWDJHVRIKHDOLQJ
+\GURFROORLGVHJ*UDQXIOH[
0DWUL[RIFHOOXORVHDQGRWKHUJHOIRUPLQJDJHQWV JHODWLQDQGSHFWLQ
2FFOXVLYHGUHVVLQJ
$YRLGLILQIHFWLRQSDUWLFXODUO\ZLWKDQDHURELFRUJDQLVPV
3URPRWHVDXWRO\VLVDQGDLGVJUDQXODWLRQ
&DQUHPDLQLQSODFHIRUXSWRDZHHN
2YHUJUDQXODWLRQFDQRFFXU
$OJLQDWHVHJ.DOWRVWDW
&DOFLXPDQGVRGLXPVDOWVRIDOJLQLFDFLGREWDLQHGIRUPVHDZHHG
+LJKO\DEVRUEHQW
8VHIXOLQPHGLXPWRKHDYLO\H[XGDWLQJZRXQGV
6HFRQGDU\FRYHULQJLVUHTXLUHG
)RUPVDJHOLQFRQWDFWZLWKZRXQGH[XGDWH
)RDPGUHVVLQJVHJ/\RIRDP
8VHIXOIRUPRGHUDWHO\H[XGDWLQJZRXQGV
3UHYHQWV
VWULNHWKURXJK
RIH[XGDWHWRZRXQGVXUIDFH
'HVORXJKVZRXQGVE\PDLQWDLQLQJDPRLVWHQYLURQPHQW
+\GURJHOVHJ,QWUDVLWH*HO
+LJKZDWHUFRQWHQWFUHDWHVDPRLVWZRXQGVXUIDFH
'HEULGHVZRXQGVE\K\GUDWLRQDQGSURPRWLRQRIDXWRO\VLV
:LOODEVRUEDOLJKWH[XGDWH
1RWDSSURSULDWHIRUKHDYLO\H[XGDWLQJZRXQGV
'HEULGLQJDJHQWV
5HPRYHHVKFDUDQGQHFURWLFWLVVXH
'RQRWPDLQWDLQPRLVWHQYLURQPHQW
1HHGIUHTXHQWFKDQJHV
9DULGDVH VWUHSWRNLQDVH
$VHUELQH PDOLFEHQ]RLFDQGVDOLF\OLFDFLGVLQDFUHDPEDVH
'DPDJHVJUDQXODWLRQWLVVXHDQGGHOD\VKHDOLQJ
58
)OXLGEDODQFH
)OXLGDQGHOHFWURO\WHEDODQFH
'DLO\UHTXLUHPHQWV
)RUWKHDYHUDJH.JPDQ
7RWDOERG\ZDWHULV/aRIERG\ZHLJKW
/LVLQWKHLQWUDFHOOXODUDQG/LQWKHH[WUDFHOOXODUFRPSDUWPHQWV
7KHSODVPDYROXPHLV/
7KHH[WUDYDVFXODUYROXPHLV/

7RWDOERG\1D LVPPROLQ(&)

7RWDOERG\. LVPPRORQO\DERXWPPROLQ(&)
1RUPDORVPRODOLW\RI(&)LVPRVPRONJ
'DLO\PDLQWHQDQFHIOXLGUHTXLUHPHQWVYDU\EHWZHHQLQGLYLGXDOV

.J0DOH /+2 PPRO1D PPRO.

.J:RPDQ /+2 PPRO1D PPRO.
'DLO\PDLQWHQDQFHIOXLGUHTXLUHPHQWVIRUFKLOGUHQ
NJ
PONJ
NJ
POPONJIRUHDFKNJ!
!NJ
POPONJIRUHDFKNJ!
)OXLGUHSODFHPHQW
:KHQFDOFXODWLQJIOXLGUHSODFHPHQWIRUDSDWLHQWVQHHGWRFRQVLGHU
0DLQWHQDQFHUHTXLUHPHQWV
5HSODFHPHQWRIORVVHVLQFOXGLQJ
3UHRSHUDWLYHRUSUHDGPLVVLRQ
2QJRLQJORVVHV
1DVRJDVWULFDVSLUDWH
9RPLWGLDUUKRHD
6WRPDGUDLQVILVWXODHWF
0RVWVXUJLFDORQJRLQJORVVHVDUHULFKLQVRGLXPDQGVKRXOGEHUHSODFHGZLWKVDOLQH
,QVHQVLEOHORVVHV
)DHFHVaPOGD\
/XQJVaPOGD\
6NLQaPOGD\
7DEOH &RPSRVLWLRQRIFU\VWDOORLGV
6RGLXPPPROO
&KORULGHPPROO
3RWDVVLXPPPROO
%LFDUERQDWHPPROO
&DOFLXPPPROO
+DUWPDQQV6ROXWLRQ

1RUPDO6DOLQH

1LO
1LO
1LO
'H[WURVH6DOLQH

1LO
1LO
1LO
/RI'H[WURVHVDOLQHLVQRWHTXLYDOHQWWR/'H[WURVHDQG/1RUPDOVDOLQH

/'H[WURVH6DOLQH /+2DQGPPRO1D

/'H[WURVHVDOLQH/1RUPDOVDOLQH /+2DQGPPRO1D
59
7DEOH &RPSRVLWLRQRIFROORLGV
*HODWLQV+DHPDFFHO
$OEXPLQ
'H[WUDQ
+\GUR[\HWK\O6WDUFK
,QLWLDO9ROXPH(IIHFW

$YHUDJH0:
N'D

0RQRGLVSHUVHG $OOPROHFXOHVRIVLPLODUPROHFXODUZHLJKW
3RO\GLVSHUVHG 0ROHFXOHVKDYHVSUHDGRIPROHFXODUZHLJKWV
&LUFXODWRU\KDOIOLIH
KUV
GD\V
KUV
GD\V
$OEXPLQ
0RQRGLVSHUVHG
([SHQVLYH
/RQJKDOIOLIH
$FFRXQWVIRURIQRUPDOSODVPDRQFRWLFSUHVVXUH
1RDGYHUVHHIIHFWRQFRDJXODWLRQ
'H[WUDQV
3RO\VDFFKDULGHV
3RO\GLVSHUVHGZLWK0:N'D
5HGXFHVSODVPDYLVFRVLW\
5HGXFHVSODWHOHWDJJUHJDWLRQ
GHYHORSDQDSK\OD[LV
*HODWLQV
3RO\SHSWLGHV
3RO\GLVSHUVHGZLWK0:aN'D
5DSLGO\ORVWIURPYDVFXODUVSDFH
+\GUR[\HWK\OVWDUFK
6\QWKHWLFSRO\VDFFKDULGHSRO\PHUVGHULYHGIURPDP\ORSHFWLQ
3RO\GLVSHUVHGZLWK0:N'D
/DUJHPROHFXOHVHQJXOIHGE\UHWLFXORHQGRWKHOLDOV\VWHP
"$VVRFLDWHGZLWKEOHHGLQJGLDWKHVLV
$VVHVVPHQWRIDGHTXDF\RIUHVXVFLWDWLRQ
&OLQLFDOKLVWRU\DQGREVHUYDWLRQV SXOVHEORRGSUHVVXUHVNLQWXUJRU
8ULQHRXWSXW ROLJXULDPONJKU
&93RUSXOPRQDU\FDSLOODU\ZHGJHSUHVVXUH
5HVSRQVHRIXULQHRXWSXWRU&93WRIOXLGFKDOOHQJH
$IOXLGFKDOOHQJHVKRXOGEHUHJDUGHGDVD POEROXVRIFROORLG
7KLVVKRXOGEHDGPLQLVWHUHGDVTXLFNO\DVSRVVLEOH
$UHVSRQVHLQWKH&93RUXULQHRXWSXWVKRXOGEHVHHQZLWKLQPLQXWHV
7KHVL]HDQGGXUDWLRQRIWKH&93UHVSRQVHUDWKHUWKHDFWXDOYDOXHVUHFRUGHGLVPRUHLPSRUWDQW
%LEOLRJUDSK\
&KRL37/<LS* 4XLQRQH]/*&RRN'-&U\VWDOORLGVYVFROORLGVLQIOXLGUHVXVFLWDWLRQDV\VWHPDWLF
UHYLHZ&ULW&DUH0HG
60
6FKLHUKRXW*5REHUWV,$OGHUVRQ3&ROORLGVYHUVXVFU\VWDOORLGVIRUIOXLGUHVXVFLWDWLRQLQFULWLFDOO\LOO
SDWLHQWV&RFKUDQH5HYLHZ,Q7KH&RFKUDQHOLEUDU\,VVXH2[IRUG
7UD\ORU5-3HDUO5*&U\VWDOORLGYHUVXVFROORLGYHUVXVFROORLG$OOFROORLGVDUHQRUHTXDO $QDHVWK$QDOJ

61
7HFKQLTXHVRIYHQRXVDFFHVV
,QGLFDWLRQV
3HULSKHUDOYHQRXVDFFHVVLVUHTXLUHGIRU
$GPLQLVWUDWLRQRIIOXLGV
$GPLQLVWUDWLRQRIGUXJV
&HQWUDOYHQRXVDFFHVVLVUHTXLUHGIRU
3DUHQWHUDOQXWULWLRQ
0RQLWRULQJRIFHQWUDOYHQRXVSUHVVXUH
&DUGLDFSDFLQJ
'LIILFXOWSHULSKHUDODFFHVV
7HFKQLTXHV
$VHSWLFWHFKQLTXHVVKRXOGEHXVHGIRUDOOFDQQXODWLRQV
/RFDODQDHVWKHWLFVKRXOGEHXVHGIRUFHQWUDOFDWKHWHUV
7HFKQLTXHVRIJDLQLQJDFFHVVLQFOXGH
&DWKHWHURYHUQHHGOH
&DWKHWHUWKURXJKQHHGOH
6HOGLQJHUWHFKQLTXH
6XUJLFDOFXWGRZQ
6HOGLQJHUWHFKQLTXH
7KHUHDUHIRXUVWHSVWRWKH6HOGLQJHUWHFKQLTXH
9HQHSXQFWXUHLVSHUIRUPHGZLWKDLQWURGXFHUQHHGOH
$VRIWWLSSHGJXLGHZLUHLVSDVVHGWKURXJKWKHQHHGOHDQGWKHQHHGOHUHPRYHG
$GLODWRULVSDVVHGRYHUWKHJXLGHZLUH
'LODWRULVUHPRYHGDQGFDWKHWHULVSDVVHGRYHUZLUHDQGZLUHLVUHPRYHG
&KHVW[UD\VKRXOGEHSHUIRUPHGWRFKHFNSRVLWLRQRIFDWKHWHU
9HQRXVFXWGRZQ
8VHIXOIRUJDLQLQJDFFHVVLQVKRFNHGK\SRYRODHPLFSDWLHQW
&RPPRQHVWVLWHV
/RQJVDSKHQRXVYHLQDWDQNOH FPDQWHULRUWRPHGLDOPDOOHROXV
%DVLOLFYHLQDWHOERZ FPODWHUDOWRPHGLDOHSLFRQG\OH
$WERWKVLWHVYHLQLVGLVVHFWHGDQGOLJDWHGGLVWDOO\
6PDOOWUDQVYHUVHYHQRWRP\LV PDGH
&DQQXODLVSDVVHGWKURXJKYHQRWRP\DQGVHFXUHG
$QDWRP\RIYHQRXVDFFHVV
,QWHUQDOMXJXODUYHLQ
5LJKWVLGHGDFFHVVSUHIHUUHG
$SLFDOSOHXUDGRHVQRWULVHDVKLJKRQULJKWDQGDYRLGVWKRUDFLFGXFW
3DWLHQWSRVLWLRQHGKHDGGRZQ
,QWKHORZDSSURDFKWULDQJOH IRUPHGE\WZRKHDGVRIVWHUQRPDVWRLGDQGFODYLFOHLGHQWLILHG
&DQQXODDLPHGGRZQDQGODWHUDOWRZDUGVLSVLODWHUDOQLSSOH
6XEFODYLDQYHLQ
8VXDOO\DSSURDFKHGIURPEHORZFODYLFOH
3DWLHQWSRVLWLRQHGKHDGGRZQ
1HHGOHLQVHUWHGEHORZMXQFWLRQRIPHGLDODQGODW HUDORIWKHFODYLFOH
62
1HHGOHDLPHGWRZDUGVVXSUDVWHUQDOQRWFK
3DVVHVLPPHGLDWHO\EHKLQGFODYLFOH
9HLQHQFRXQWHUHGDIWHUFP
(DUO\FRPSOLFDWLRQV
+DHPRUUKDJH
$LUHPEROXV
3QHXPRWKRUD[
&DUGLDFDUUK\WKPLDV
3HULFDUGLDOWDPSRQDGH
)DLOHGFDQQXODWLRQ
/DWHFRPSOLFDWLRQV
9HQRXVWKURPERVLV
,QIHFWLRQ
&HQWUDOOLQHLQIHFWLRQ
RIFHQWUDOOLQHVEHFRPHFRORQLVHGZLWKEDFWHULD
RISDWLHQWVLQ,78GHYHORSFDWKHWHUUHODWHGVHSVLV
8VXDOO\GXHWRFRDJXODVHQHJDWLYHVWDSK\ORFRFFXVLQIHFWLRQ
2FFDVLRQDOO\GXHWR&DQGLGD DQG6WDSKDXUHXV
,QIHFWLRQFDQEHSUHYHQWHGE\DVHSWLFWHFKQLTXHVDQGDGHTXDWHFDUHRIOLQHV
&ORVHGV\VWHPVVKRXOGEHXVHGDWDOOWLPHV
'HGLFDWHGOLQHVVKRXOGEHXVHGIRUSDUHQWHUDOQXWULWLRQ
$QWLPLFURELDOFRDWLQJRIOLQHVPD\UHGXFHWKHULVNRILQIHFWLRQ
63
6XUJLFDOQXWULWLRQ
0DOQXWULWLRQFDXVHV
'HOD\HGZRXQGKHDOLQJ
5HGXFHGYHQWLODWRU\FDSDFLW\
5HGXFHGLPPXQLW\DQGLQFUHDVHGULVNRILQIHFWLRQ
'RHVLPSURYLQJQXWULWLRQDOVWDWXVLQIOXHQFHRXWFRPH"
&XUUHQWO\WKHWRSLFRILQWHQVLYHLQYHVWLJDWLRQ
1XWULWLRQDODVVHVVPHQW
&OLQLFDODVVHVVPHQW
:HLJKWORVV
PLOGPDOQXWULWLRQ
VHYHUHPDOQXWULWLRQ
%RG\PDVVLQGH[
$QWKURSRPHWULFDVVHVVPHQW
7ULFHSVVNLQIROGWKLFNQHVV
0LGDUPFLUFXPIHUHQFH
+DQGJULSVWUHQJWK
%ORRGLQGLFHV
5HGXFHGVHUXPDOEXPLQSUHDOEXPLQRUWUDQVIHUULQ
/\PSKRF\WHFRXQW
(QGRIEHGRJUDP
1RLQGH[RIQXWULWLRQDODVVHVVPHQWVKRZQWREHVXSHULRUWRFOLQLFDODVVHVVPHQW
0HWKRGVRIQXWULWLRQDOVXSSRUW
8VHJDVWURLQWHVWLQDOWUDFWLIDYDLODEOH
3URORQJHGSRVWRSHUDWLYHVWDUYDWLRQLVSUREDEO\QRWUHTXLUHG
(DUO\HQWHUDOQXWULWLRQUHGXFHGSRVWRSHUDWLYHPRUELGLW\
(QWHUDOIHHGLQJ
3UHYHQWVLQWHVWLQDOPXFRVDODWURSK\
6XSSRUWVJXWDVVRFLDWHGLPPXQRORJLFDOVKLHOG
$WWHQXDWHVK\SHUPHWDEROLFUHVSRQVHWRLQMXU\DQGVXUJHU\
&KHDSHUWKDQ731DQGKDVIHZHUFRPSOLFDWLRQV
3RO\PHULFOLTXLGGLHW
6KRUWSHSWLGHVPHGLXPFKDLQWULJO\FHULGHVDQGSRO\VDFFKDULGHV
9LWDPLQVDQGWUDFHHOHPHQWV
(OHPHQWDOGLHW
/DPLQRDFLGVVLPSOHVXJDUV
([SHQVLYHDQGXQSDODWDEOH
+LJKRVPRODULW\FDQFDXVHGLDUUKRHD
(QWHUDOIHHGFDQEHWDNHQRUDOO\RUE\1*7
1DVRHQWHUDOWXEH XVXDOO\ILQHERUH"GRXEOHOXPHQ
/RQJWHUPIHHGLQJFDQEHE\
64
6XUJLFDOJDVWURVWRP\MHMXQRVWRP\
3HUFXWDQHRXVHQGRVFRSLFJDVWURVWRP\
1HHGOHFDWKHWHUMHMXQRVWRP\
5DWHRILQIXVLRQ RIWHQVWDUWHGDWORZUDWHDQGLQFUHDVHG
6WUHQJWKRILQLWLDOIHHG RIWHQGLOXWHGDQGVWUHQJWKJUDGXDOO\LQFUHDVHG
&RPSOLFDWLRQVRIHQWHUDOIHHGLQJ
0DOSRVLWLRQDQGEORFNDJHRIWXEH
*DVWURRHVRSKDJHDOUHIOX[
)HHGLQWROHUDQFH
3DUHQWHUDOQXWULWLRQ
,QWHVWLQDOIDLOXUH $UHGXFWLRQLQIXQFWLRQLQJJXWPDVVEHORZWKHPLQLPDOQHFHVVDU\IRU
DGHTXDWHGLJHVWLRQDQGDEVRUSWLRQRIQXWULHQWV
8VHIXOFRQFHSWIRUDVVHVVLQJQHHGIRU731
&DQEHJLYHQE\HLWKHU DSHULSKHUDORUFHQWUDOOLQH
,QGLFDWLRQVIRU7RWDO3DUHQWHUDO1XWULWLRQ
$EVROXWHLQGLFDWLRQV
(QWHURFXWDQHRXVILVWXODH
5HODWLYHLQGLFDWLRQV
0RGHUDWHRUVHYHUHPDOQXWULWLRQ
$FXWHSDQFUHDWLWLV
$EGRPLQDOVHSVLV
3URORQJHGLOHXV
0DMRUWUDXPDDQGEXUQV
6HYHUHLQIODPPDWRU\ERZHOGLVHDVH
3HULSKHUDOSDUHQWHUDOQXWULWLRQ
+\SHURVPRWLFVROXWLRQ
6LJQLILFDQWSUREOHPZLWKWKURPERSKOHELWLV
1HHGWRFKDQJHFDQQXODVHYHU\ KRXUV
1RHYLGHQFHWRVXSSRUWLWDVDFOLQLFDOO\LPSRUWDQWWKHUDS\
&RPSRVLWLRQ JQLWURJHQ&DORULHV
&HQWUDOSDUHQWHUDOQXWULWLRQ
+\SHURVPRODUORZS+DQGLUULWDQWWRYHVVHOZDOOV
7\SLFDOIHHGFRQWDLQVWKHIROORZLQJLQ/
JQLWURJHQDV/DPLQRDFLGV
JJOXFRVH
POOLSLGHPXOVLRQ

PPRO1D

PPRO.

PPRO&O

PPRO0J

PPRO&D

PPRO32

PPRO=Q
65
:DWHUDQGIDWVROXEOHYLWDPLQV
7UDFHHOHPHQWV
&RPSOLFDWLRQVRIVXEFODYLDQDQGMXJXODUFHQWUDOYHQRXVOLQHV
RIFHQWUDOOLQHVGHYHORSVLJQLILFDQWFRPSOLFDWLRQV
3UREOHPVRILQVHUWLRQ
)DLOXUHWRFDQQXODWH
3QHXPRWKRUD[
+DHPRWKRUD[
$UWHULDOSXQFWXUH
%UDFKLDOSOH[XVLQMXU\
0HGLDVWLQDOKDHPDWRPD
7KRUDFLFGXFWLQMXU\
3UREOHPVRIFDUH
/LQHDQGV\VWHPLFVHSVLV
$LUHPEROXV
7KURPERVLV
&DWKHWHUEUHDNDJH
0RQLWRULQJRISDUHQWHUDOQXWULWLRQ
)HHGLQJOLQHVVKRXOGRQO\EHXVHGIRUWKDWSXUSRVH
'UXJVDQGEORRGSURGXFWVVKRXOGEHJLYHQYLDVHSDUDWHSHULSKHUDOOLQH
SDWLHQWVRQ731GHYHORSPHWDEROLFGHUDQJHPHQW
1XWULWLRQVKRXOGEHPRQLWRUHG
&OLQLFDOO\ :HLJKW
%LRFKHPLFDOO\WZLFHZHHNO\
)%&8(/)7

0J &D 32 =Q
1LWURJHQEDODQFH
%ORRGFXOWXUHVRQDQ\VLJQRIVHSVLV
0HWDEROLFFRPSOLFDWLRQVRISDUHQWHUDOQXWULWLRQ
+\SRQDWUDHPLD
+\SRNDODHPLD
+\SHUFKORUDHPLD
7UDFHHOHPHQWDQGIRODWHGHILFLHQF\
'HUDQJHG/)7V
/LQROHLFDFLGGHILFLHQF\
%LEOLRJUDSK\
%R]]HWWL)%UDJD0*LDQRWWL/*DYD]]L&0DULDQL/3RVWRSHUDWLYHHQWHUDOYHUVXVSDUHQWHUDOQXWULWLRQ
LQPDOQRXULVKHGSDWLHQWVZLWKJDVWURLQWHVWLQDOFDQFHUDUDQGRPLVHGPXOWLFHQWUHWULDO /DQFHW

&DUU&6/LQJ.'%RXORV3HWDO5DQGRPLVHGWULDO RIVDIHW\DQGHIILFDF\RILPPHGLDWHSRVWRSHUDWLYH
IHHGLQJLQSDWLHQWVXQGHUJRLQJJDVWURLQWHVWLQDOUHVHFWLRQ%U0HG-
66
/HZLV6-(JJHU06\OYHVWHU3$7KRPDV6(DUO\HQWHUODIHHGLQJYHUVXV
QLOE\PRXWK
DIWHU
JDVWURLQWHVWLQDOVXUJHU\V\VWHPDWLFUHYLHZDQGPHWDDQDO\VLVRIFRQWUROOHGWULDOV%U0HG-

0RUDQ%-DFNVRQ$$3HULRSHUDWLYHQXWULWLRQDOVXSSRUW %U-6XUJ
0RUDQ%5HFHQWDGYDQFHVLQQXWULWLRQDOVXSSRUWRIVXUJLFDOSDWLHQWV ,Q-RKQVRQ&'7D\ORU,HGV
5HFHQWDGYDQFHVLQ6XUJHU\&KXUFKLOO/LYLQJVWRQ(GLQEXUJK
5HLVVPDQ37HRK7$&RKHQ60HWDO,VHDUO\RUDOIHHGLQJVDIHDIWHUHOHFWLYHFRORUHFWDOVXUJHU\ $QQ
6XUJ
6DJDU30.UXHJHQHU*0DF)LH-1DVRJDVWULFLQWXEDWLRQDQGHOHFWLYHDEGRPLQDOVXUJHU\ %U-6XUJ

6DXQGHUV&1LVKLNDZD5:ROIH%6XUJLFDOQXWULWLRQ$UHYLHZ -5&ROO6XUJ(GLQE

6KLNRUD6$2JDZD$0(QWHUDOQXWULWLRQDQGWKHFULWLFDOO\LOO3RVWJUDG0HG-
9HWHUDQV$IIDLUV7RWDO3DUHQWHUDO1XWULWLRQ&RRSHUDWLYH6WXG\*URXS3HULRSHUDWLYHSDUHQWHUDOQXWULWLRQLQ
VXUJLFDOSDWLHQWV1(QJO-0HG
67
%ORRG
+DHPRVWDVLV
7KHKDHPRVWDWLFUHVSRQVHKDVWKUHHHOHPHQWV
9DVRFRQVWULFWLRQ
3ODWHOHWDJJUHJDWLRQ
&ORWWLQJFDVFDGH
9DVRFRQVWULFWLRQ
2FFXUVDVDGLUHFWUHVXOWRIYHVVHOLQMXU\
(QKDQFHGE\YDVRFRQVWULFWLQJHOHPHQWVUHOHDVHG IURPSODWHOHWV
3DLQFDQDOVRUHVXOWLQUHIOH[V\PSDWKHWLFYDVRFRQVWULFWLRQ
3ODWHOHWDJJUHJDWLRQ
3ODWHOHWVDUHIRUPHGLQERQHPDUURZIURPPHJDNDU\RF\WHV
&RQWDLQWKHFRQWUDFWLOHSURWHLQVDFWLQDQGP\RVLQ
1RQXFOHXVEXWFRQWDLQHQGRSODVPLFUHWLFXOXPDQG*ROJLDSSDUDWXVWKDWFDQSURGXFHSURWHLQV
&RQWDLQPLWRFKRQGULDWKDWFDQSURGXFH$73DQG$'3
&DQDOVRV\QWKHVLVSURVWDJODQGLQVDQGWKURPER[DQH$
+DYHDKDOIOLIHLQWKHEORRGRIGD\V
,QUHVSRQVHWRWLVVXHGDPDJHSODWHOHWVXQGHUJRDQXPEHURIFKDQJHV
3ODWHOHWDJJUHJDWLRQFDQUHVXOWLQD
SODWHOHWSOXJ
WKDWFDQEORFNDVPDOOKROH
3ODWHOHWVDGKHUHWRGDPDJHGHQGRWKHOLXPYLD9RQ:LOOHEUDQGIDFWRU
$JJUHJDWLQJSODWHOHWVUHOHDVHVDUDFKDGRQLFDFLGZKLFKLVFRQYHUWHGWRWKURPER[DQH$
&DOFLXPPHGLDWHGFRQWUDFWLRQRIDFWLQDQGP\RVLQUHVXOWVLQGHJUDQXODWLRQ
5HOHDVHV$'3ZKLFKFDQLQGXFHVIXUWKHUDJJUHJDWLRQDQGUHOHDVHLQDSRVLWLYHIHHGEDFN
IDVKLRQ
&ORWWLQJFDVFDGH
7KHFORWWLQJFDVFDGHKDVWZRVHPLLQGHSHQGHQWSDWKZD\V
7KHLQWULQVLFSDWKZD\KDVDOORILWVFRPSRQHQWVZLWKLQEORRG
7KHH[WULQVLFSDWKZD\LVWULJJHUHGE\H[WUDYDVFXODUWLVVXHGDPDJH
7KLVSDWKZD\LVDFWLYDWHGE\H[SRVXUHWRDWLVVXHIDFWRU
%RWKSDWKZD\VUHVXOWLQDFWLYDWLRQRISURWKURPELQIDFWRU,,
7KHILQDOFRPPRQSDWKZD\FRQYHUWVILEULQRJHQWRILEULQPRQRPHU
3RO\PHULVDWLRQRIILEULQUHVXOWVLQWKHIRUPDWLRQRIORQJILQHVWUDQGVKHOGWRJHWKHUE\+ ERQGV
7KHVHDUHWKHQFRQYHUWHGLQWRFRYDOHQWERQGVZLWKVWDELOLVDWLRQRIWKHILEULQSRO\PHU
7KHLQWULQVLFSDWKZD\VLVUHODWLYHO\VORZPLQXWHV
7KHH[WULQVLFSDWKZD\VLVTXLWHIDVWVHFRQGV
68
)LJXUH 7KHFORWWLQJFDVFDGH
%LEOLRJUDSK\
'DKOEDFN%%ORRGFRDJXODWLRQ/DQFHW
69
'LVRUGHUVRIFRDJXODWLRQDQGKDHPRVWDVLV
+DHPRSKLOLD
+DHPRSKLOLD$LVGXHWRIDFWRU9,,,GHILFLHQF\
+DHPRSKLOLD%&KULVWPDVGLVHDVHLVGXHWRIDFWRU,;GHILFLHQF\
+DHPRSKLOLD$
$IIHFWVDERXWLQSRSXODWLRQ
,WLVDVH[OLQNHGFORWWLQJGLVRUGHU
2QHWKLUGRISDWLHQWVKDYHQRIDPLO\KLVWRU\
8VXDOO\SUHVHQWVLQFKLOGKRRGZLWK
3URORQJHGKDHPRUUKDJHDIWHUGHQWDOH[WUDFWLRQ
5HFXUUHQWKDHPDUWKURVHVRUPXVFOHKDHPDWRPDV
6XESHULRVWHDOKDHPDWRPDVFDQUHVXOWLQKDHPRSKLOLFSVHXGRWXPRXUV
&OLQLFDOVHYHULW\GHSHQGVRQH[WHQWFORWWLQJIDFWRUGHILFLHQF\
DFWLYLW\ VHYHUHGLVHDVHZLWKOLIHWKUHDWHQLQJEOHHGLQJ
DFWLYLW\ PRGHUDWHGLVHDVHZLWKSRVWWUDXPDWLFEOHHGLQJ
DFWLYLW\ PLOGGLVHDVH
,QYHVWLJDWLRQ
$FWLYDWHGSDUWLDOWKURPERSODVWLQWLPH$337 LVSURORQJHG

SURWKURPELQWLPH37LVQRUPDO
:KROHEORRGFRDJXODWLRQWLPHLVSURORQJHG
)DFWRU9,,,LVUHGXFHG
7UHDWPHQW
%OHHGLQJHSLVRGHVDUHWUHDWHGZLWKIDFWRU9,,,UHSODFHPHQW
*LYHQDVHLWKHUIDFWRU9,,,FRQFHQWUDWHRUFU\RSUHFLSLWDWH
%OHHGLQJXVXDOO\ZHOOFRQWUROOHGLIIDFWRU9,,,OHYHOVUDLVHGDERYHQRUPDO
'HVPRSUHVVLQLQFUHDVHVLQWULQVLFIDFWRU9,,,OHYHOV
GHYHORSDQWLERGLHVWRIDFWRU9,,,
5HQGHUVSDWLHQWVUHIUDFWRU\WRIDFWRUUHSODFHPHQWWKHUDS\
'LVVHPLQDWHGLQWUDYDVFXODUFRDJXODWLRQ
'XHWRZLGHVSUHDGLQWUDYDVFXODUDFWLYDWLRQRIFORWWLQJFDVFDGH
&DXVHVDEOHHGLQJWHQGHQF\GXHWRFRQVXPSWLRQRIFORWWLQJIDFWRUV
3UHVHQWVZLWKEUXLVLQJRUSXUSXUD
2R]LQJIURPVXUJLFDOZRXQGVDQGYHQHSXQFWXUHVLWHV
&DXVHV
6HYHUHXVXDOO\JUDPQHJDWLYHRUPHQLQJRFRFFDOLQIHFWLRQ

:LGHVSUHDGPXFLQVHFUHWLQJPHWDVWDWLFDGHQRFDUFLQRPD
+\SRYRODHPLFVKRFN
%XUQV
7UDQVIXVLRQUHDFWLRQV
(FODPSVLD
$PQLRWLFIOXLGHPEROXV
3URP\HORF\WLFOHXNDHPLD
,QYHVWLJDWLRQ
,QFUHDVHG$337DQG37
70
5HGXFHGVHUXPILEULQRJHQOHYHOVPJPO
7KURPERF\WRSHQLD
,QFUHDVHGILEULQGHJUDGDWLRQSURGXFWV
)DFWRU9DQG9,,,DFWLYLWLHVDUHUHGXFHG
7UHDWPHQW
)OXLGUHVXVFLWDWLRQ
7UHDWXQGHUO\LQJFDXVH
&RUUHFWFORWWLQJDEQRUPDOLWLHVZLWK
)UHVKIUR]HQSODVPD
&U\RSUHFLSLWDWH
3ODWHOHWWUDQVIXVLRQ
%LEOLRJUDSK\
/XGODP&$7UHDWPHQWRIKDHPRSKLOLD%U-+DHPDWRO 6XSSO
6HQQR6/3HFKHW/%LFN5/'LVVHPLQDWHGLQWUDYDVFXODUFRDJXORSDWK\',&SDWKRSK\VLRORJ\

ODERUDWRU\GLDJQRVLVDQGPDQDJHPHQW-,QWHQVLYH&DUH0HG
71
%ORRGJURXSV
$%2V\VWHP
&RQVLVWVRIWKUHHDOOHOLFJHQHV $%DQG2
$DQG%JHQHVFRQWUROV\QWKHVLVRIHQ]\PHVWKDWDGGFDUERK\GUDWHUHVLGXHVWRFHOOVXUIDFH
JO\FRSURWHLQV
7KH2JHQHLVDQDPRUSKDQGGRHVQRWWUDQVIRUPWKHJO\FRSURWHLQ
6L[SRVVLEOHJHQRW\SHVEXWRQO\IRXUSKHQRW\SHV
1DWXUDOO\RFFXUULQJDQWLERGLHVDUHIRXQGLQWKHVHUXPRIWKRVHODFNLQJWKHFRUUHVSRQGLQJ
DQWLJHQ
7DEOH $%2EORRGJURXSV\VWHP
3KHQRW\SH
2
$
%
$%
*HQRW\SH
22
$$RU$2
%%RU%2
$%
$QWLJHQV
2
$
%
$%
$QWLERGLHV
$QWL$ %
$QWL%
$QWL$
1RQH
)UHTXHQF\

5KHVXVV\VWHP
5KHVXVDQWLERGLHVDUHLPPXQHDQWLERGLHVUHTXLULQJH[SRVXUHGXULQJWUDQVIXVLRQRUSUHJQDQF\
SRSXODWLRQDUHUKHVXVSRVLWLYH
RI5KQHJDWLYHSDWLHQWVWUDQVIXVHGZLWK5KSRVLWLYHEORRGGHYHORSDQWL'DQWLERGLHV
&URVVPDWFKLQJ
5HTXLUHV
%ORRGJURXSLQJ
3DWLHQWVUHGFHOOVJURXSHGIRU$%2DQG5KDQWLJHQV
6HUXPWHVWHGWRFRQILUPSDWLHQWV$%2JURXS
$QWLERG\VFUHHQLQJ
'HWHFWVDW\SLFDOUHGFHOODQWLERGLHVLQUHFLSLHQWVVHUXP
&URVVPDWFKLQJ
7HVWVGRQRUUHGFHOOVDJDLQVWSDWLHQWVVHUXP
%ORRGSURGXFWV
:KROHEORRG
3DFNHGUHGFHOOV
*UDQXORF\WHFRQFHQWUDWHV
3ODWHOHWFRQFHQWUDWHV
+XPDQSODVPD IUHVKIUR]HQSODVPDIUHH]HGULHGSODVPD
3ODVPDSURWHLQIUDFWLRQ
+XPDQDOEXPLQ
&U\RSUHFLSLWDWH
&ORWWLQJIDFWRUV )DFWRU9,,,,;
,PPXQRJOREXOLQV
72
7DEOH &RPSOLFDWLRQVRIEORRGWUDQVIXVLRQ
(DUO\
+DHPRO\WLFUHDFWLRQVLPPHGLDWHRUGHOD\HG
%DFWHULDOLQIHFWLRQVIURPFRQWDPLQDWLRQ
$OOHUJLFUHDFWLRQVWRZKLWHFHOOVRUSODWHOHWV
$FXWHOXQJLQMXU\
3\RJHQLFUHDFWLRQV
&LUFXODWRU\RYHUORDG
$LUHPEROLVP
7KURPERSKOHELWLV
&LWUDWHWR[LFLW\
+\SHUNDODHPLD
&ORWWLQJDEQRUPDOLWLHV
/DWH
,QIHFWLRQV KHSDWLWLVRU&09
,URQRYHUORDG
,PPXQHVHQVLWLVDWLRQ
$FXWHKDHPRO\WLFRUEDFWHULDOWUDQVIXVLRQUHDFWLRQV
'XHWRDFXWHKDHPRO\VLVRUEDFWHULDOFRQWDPLQDWLRQ
'LIILFXOWWRGLIIHUHQWLDWHRQFOLQLFDOJURXQGV
0D\RFFXUDIWHULQIXVLRQRIVPDOOYROXPHRILQFRPSDWLEOHRULQIHFWHGEORRG
$VVRFLDWHGZLWKKLJKPRUELGLW\DQGPRUWDOLW\
,QXQFRQVFLRXVSDWLHQWEOHHGLQJGXHWR',&PD\EHRQO\VLJQ
0RVW$%2PLVPDWFKHGWUDQVIXVLRQVDUHGXHWRKXPDQHUURU
8VXDOO\RFFXUVVRRQDIWHUVWDUWRIWUDQVIXVLRQ
3DWLHQWIHHOVXQZHOODQGDJLWDWHG
6\PSWRPVLQFOXGHEDFNSDLQDQGSDLQDWLQIXVLRQVLWH
$VVRFLDWHGZLWKVKRUWQHVVRIEUHDWKULJRUV
([DPLQDWLRQZLOOVKRZK\SRWHQVLRQROLJXULDDQGEOHHGLQJIURPYHQHSXQFWXUHVLWHV
8ULQDO\VLVZLOOVKRZKDHPRJORELQXULD
0DQDJHPHQW
'LVFRQWLQXHWUDQVIXVLRQLPPHGLDWHO\DQGUHPRYHJLYLQJVHW
&KHFNXQLWRIEORRGDJDLQVWSDWLHQWVLGHQWLW\
*LYHLQWUDYHQRXVFU\VWDOORLG
&RQVLGHUWUDQVIHUWRWKHLQWHQVLYHFDUHXQLW
7DNHEORRGIRU)%&SODVPDKDHPRJORELQFORWWLQJEORRGFXOWXUHVDQGUHSHDWJURXSLQJ
*LYHEURDGVSHFWUXPDQWLELRWLFV
0RQLWRUXULQHRXWSXWDQG(&*
$QDSK\OD[LV
8VXDOO\RFFXUVVRRQDIWHUVWDUWRIWUDQVIXVLRQ
0D\EHVHHQLQ,J$GHILFLHQWSDWLHQWVUHDFWLQJWRWUDQVIXVHG,J$
3UHVHQWVZLWKFLUFXODWRU\FROODSVHDQGEURQFKRVSDVP
0DQDJHPHQW
'LVFRQWLQXHWUDQVIXVLRQDQGUHPRYHJLYLQJVHW
0DLQWDLQDLUZD\DQGJLYHR[\JHQ
$GPLQLVWHUDGUHQDOLQHFKORUSKHQLUDPLQHVDOEXWDPRO
,IWKHSDWLHQWLV,J$GHILFLHQWDQ\IXUWKHUWUDQVIXVLRQPXVWEHFDUHIXOO\SODQQHG
73
1RQKDHPRO\WLFWUDQVIXVLRQIHEULOHUHDFWLRQ
8VXDOO\RFFXUVPRUHWKDQPLQXWHVDIWHUVWDUWRIWUDQVIXVLRQ
3DWLHQWIHHOVJHQHUDOO\ZHOOEXWPD\EHVKLYHULQJ
7HPSHUDWXUHLVXVXDOO\OHVVWKDQq&
%ORRGSUHVVXUHLVXVXDOO\QRUPDO
0DQDJHPHQW
6WRSWUDQVIXVLRQDQGDVVHVVSRVVLELOLW\WKDWWKLVPD\EHDPRUHVLJQLILFDQWUHDFWLRQ
5HVWDUWWUDQVIXVLRQDWDVORZHUUDWH
&RQVLGHUWKHXVHRISDUDFHWDPRO
+\GURFRUWLVRQHVKRXOGQRWEHURXWLQHO\XVHGGXULQJDWUDQVIXVLRQ
7UDQVIXVLRQUHODWHGDFXWHOXQJLQMXU\
2FFXUVIROORZLQJDGPLQLVWUDWLRQRISODVPDFRQWDLQLQJEORRGFRPSRQHQWV
'XHWRLQWHUDFWLRQRIGRQRUDQWLERGLHVZLWKUHFLSLHQWZKLWHFHOOV
7KHFOLQLFDOSLFWXUHVLVVLPLODUWR$5'6
2FFXUVPLQXWHVWRVHYHUDOGD\VDIWHUWUDQVIXVLRQ
&OLQLFDOIHDWXUHVLQFOXGHIHYHUFRXJKDQGVKRUWQHVVRIEUHDWK
&KHVW[UD\VKRZVSHULKLODUVKDGRZLQJ
7UHDWDV$5'6
'HOD\HGKDHPRO\WLFWUDQVIXVLRQUHDFWLRQ
2FFXUVGD\VDIWHUWUDQVIXVLRQ
&OLQLFDOIHDWXUHVDUHXVXDOO\PLQLPDO
3RVVLEO\XQH[SODLQHGS\UH[LDRUMDXQGLFH
8QH[SODLQHGGURSLQKDHPRJORELQ
8ULQDO\VLVVKRZVXURELOLQRJHQXULD
0DQDJHPHQW
&KHFN/)7VFORWWLQJDQGUHGFHOODQWLERG\VFUHHQ
%LEOLRJUDSK\
:LQNHOVWHLQ$.LVV-(,PPXQRKHPDWRORJLFGLVHDVHV-$0$
6ORRS*')ULHGEHUJ5&&RPSOLFDWLRQVRIEORRGWUDQVIXVLRQ+RZWRUHFRJQLVHDQGUHVSRQGWRQRQ
LQIHFWLRXVUHDFWLRQV3RVWJUDG0HG
74
3RVWRSHUDWLYHSDLQ
3DLQLVGHILQHDV
DQXQSOHDVDQWVHQVRU\DQGHPRWLRQDOH[SHULHQFHDVVRFLDWHGZLWKDFWXDORU
SRWHQWLDOWLVVXHGDPDJH
,WLVDFRPSOH[SURFHVVLQIOXHQFHGE\ERWKSK\VLRORJLFDODQGSV\FKRORJLFDOIDFWRUV
0DQDJHPHQWRISRVWSRVWRSHUDWLYHSDLQKDVJHQHUDOO\ EHHQVKRZQWREHLQDGHTXDWH
(IIHFWVRISRVWRSHUDWLYHSDLQ
3RVWRSHUDWLYHSDLQFDQDIIHFWVDOORUJDQV\VWHPVDQGLQFOXGHV
5HVSLUDWRU\ UHGXFHGFRXJKDWHOHFWDVLVVSXWXPUHWHQWLRQDQGK\SR[DHPLD
&DUGLRYDVFXODU LQFUHDVHGP\RFDUGLDOR[\JHQFRQVXPSWLRQDQGLVFKDHPLD
*DVWURLQWHVWLQDO GHFUHDVHGJDVWULFHPSW\LQJUHGXFHGJXWPRWLOLW\DQGFRQVWLSDWLRQ
*HQLWRXULQDU\ XULQDU\UHWHQWLRQ
1HXURHQGRFULQH K\SHUJO\FDHPLDSURWHLQFDWDEROLVPDQGVRGLXPUHWHQWLRQ
0XVFXORVNHOHWDO UHGXFHGPRELOLW\SUHVVXUHVRUHVDQG LQFUHDVHGULVNRI'97
3V\FKRORJLFDO DQ[LHW\DQGIDWLJXH
$VVHVVPHQWRISDLQ
3DLQLVDVXEMHFWLYHH[SHULHQFH
2EVHUYHUDVVHVVPHQWRISDWLHQWEHKDYLRXULVXQUHOLDEOH
3DLQVKRXOGEHDVVHVVHGDQGUHFRUGHGE\
9LVXDODQDORJXHVFDOHV
9HUEDOQXPHULFDOUHSRUWLQJVFDOH
&DWHJRULFDOUDWLQJVFDOH
1RQSKDUPDFRORJLFDOPHWKRGVRISDLQUHOLHI
3UHRSHUDWLYHH[SODQDWLRQDQGHGXFDWLRQ
5HOD[DWLRQWKHUDS\
+\SQRVLV
&ROGRUKHDW
6SOLQWLQJRIZRXQGVHWF
7UDQVFXWDQHRXVHOHFWULFDOQHUYHVWLPXODWLRQ7(16
3KDUPDFRORJLFDOPHWKRGVRISDLQUHOLHI
6LPSOHDQDOJHVLD
3DUDFHWDPROLVDZHDNDQWLLQIODPPDWRU\DJHQW
0RGXODWHVSURVWDJODQGLQSURGXFWLRQLQWKHFHQWUDOQHUYRXVV\VWHP
&DQEHDGPLQLVWHUHGRUDOO\RUUHFWDOO\
%HVWWDNHQRQDUHJXODUUDWKHUWKDQ
DVUHTXLUHG
EDVLV
2YHUGRVHUHVXOWVLQKHSDWLFQHFURVLV
2IWHQFRPELQHGZLWKZHDNRSLDWHVHJGLK\GURFRGHLQH &RG\GUDPRO
1RQVWHURLGDODQWLLQIODPPDWRU\DJHQWV
,QKLELWWKHHQ]\PHF\FORR[\JHQDVH
5HGXFHVSURVWDJODQGLQSURVWDF\FOLQDQGWKURPER[DQHSURGXFWLRQ
$OVRKDYHZHDNFHQWUDODQDOJHVLFHIIHFW
2IWHQXVHGIRUWKHLU
RSLDWHVSDULQJ
HIIHFWV
6LGHHIIHFWVLQFOXGH
*DVWULFLUULWDWLRQDQGSHSWLFXOFHUDWLRQ
3UHFLSLWDWLRQRIEURQFKRVSDVPLQDVWKPDWLFV
75
,PSDLUPHQWRIUHQDOIXQFWLRQ
3ODWHOHWG\VIXQFWLRQDQGEOHHGLQJ
2SLDWHV
0RVWFRPPRQO\XVHGGUXJVDUHGLDPRUSKLQHPRUSKLQHDQGSHWKLGLQH
'LDPRUSKLQHLVDSURGUXJUDSLGO\K\GURO\VHGWRPRUSKLQHDQG PRQRDFHW\OPRUSKLQH
0RUHOLSLGVROXEOHWKDQPRUSKLQHZLWKJUHDWHUFHQWUDOHIIHFWV
3HWKLGLQHKDVRQO\DERXWWKHDQDOJHVLFSRWHQF\RIPRUSKLQH
$OODFWRQPXUHFHSWRUVLQEUDLQDQGVSLQDOFRUG
0XUHFHSWRUVDUHUHVSRQVLEOHIRUDQDOJHVLD
0XUHFHSWRUVDUHUHVSRQVLEOHIRUUHVSLUDWRU\GHSUHVVLRQ
6LGHHIIHFWVRIRSLDWHVLQFOXGH
6HGDWLRQ
1DXVHDDQGYRPLWLQJ
9DVRGLODWDWLRQDQGP\RFDUGLDOGHSUHVVLRQ
3UXULWXV
'HOD\HGJDVWULFHPSW\LQJ
&RQVWLSDWLRQ
8ULQDU\UHWHQWLRQ
5RXWHVRIRSLDWHDGPLQLVWUDWLRQ
2UDO DYDLODEOHIRUFRGHLQHGLK\GURFRGHLQHDQGRUDPRUSK
6XEFXWDQHRXV XVHIXOIRUFKURQLFSDLQUHOLHI
,QWUDPXVFXODU SURGXFHVSHDNVDQGWURXJKVLQSDLQUHOLHI
,QWUDYHQRXV UHOLDEOHEXWFDQSURGXFHVHGDWLRQDQGUHVSLUDWRU\GHSUHVVLRQ
3DWLHQWFRQWUROOHGDQDOJHVLD3&$ SDWLHQWGHWHUPLQHVRZQDQDOJHVLFUHTXLUHPHQW
/RFNRXW
SHULRGSUHYHQWVDFFLGHQWDORYHUGRVH
6DIHDVVHGDWLRQRFFXUVEHIRUHUHVSLUDWRU\GHSUHVVLRQ
(SLGXUDORUVSLQDO
/LSLGVROXEOHRSLDWHVHJIHQWDQ\ODUHQRUPDOO\XVHG
3URGXFHVJRRGDQDOJHVLDZLWKUHGXFHGULVNRIVLGHHIIHFWV
/RFDODQDHVWKHWLFDJHQWVDQGWHFKQLTXHV
&DQEHXVHGE\
:RXQGLQILOWUDWLRQ
1HUYHRUQHUYHSOH[XVEORFNDGH
(SLGXUDOLQILOWUDWLRQ
,QWUDWKHFDOVSLQDODGPLQLVWUDWLRQ
/LJQRFDLQHKDVUDSLGRQVHWEXWVKRUWGXUDWLRQRIDFWLRQ
%XSLYLFDLQHKDVPRUHSURORQJHGRQVHWEXWVKRUWHUGXUDWLRQRIDFWLRQ
$GUHQDOLQHDQGGHOD\DEVRUSWLRQDQGSURORQJGXUDWLRQRIDFWLRQ
6KRXOGQRWEHXVHGDWVLWHVRIHQGDUWHULHVHJHDUILQJHUVSHQLV
$FWE\UHGXFLQJWUDQVPLVVLRQDORQJQHUYHILEUHV
:RUNE\EORFNLQJVRGLXPFKDQQHOVLQWKHQHUYHILEUHV
%ORFNSDLQILEUHVILUVWEXWFDQDOVRUHVXOWLQ
1HXURPXVFXODUEORFNDGH
+\SRWHQVLRQGXHWRV\PSDWKHWLFEORFNDGH
76
3RVWRSHUDWLYHFRPSOLFDWLRQV
3\UH[LDLVDFRPPRQSUREOHPVHHQDIWHUVXUJHU\
8QGHUO\LQJFDXVHPD\EHLGHQWLILHGFOLQLFDOO\GHSHQGLQJRQ
7LPHVLQFHRSHUDWLRQ
7\SHRIVXUJHU\XQGHUWDNHQ
$VVRFLDWHGFOLQLFDOIHDWXUHV
7LPHVLQFHRSHUDWLRQ
6SHFLILFFRPSOLFDWLRQVRIWHQRFFXUDWFHUWDLQWLPHVDIWHURSHUDWLRQ
7KHIROORZLQJWLPHVFDOHVVKRXOGEHUHJDUGHG DVDJXLGHDQGQRWDEVROXWHUXOHV
)LUVWKRXUV
6\VWHPLFUHVSRQVHWUDXPD
3UHH[LVWLQJLQIHFWLRQ
WRKRXUV
3XOPRQDU\DWHOHFWDVLV
&KHVWLQIHFWLRQ
WRGD\V
&KHVWLQIHFWLRQ
:RXQGLQIHFWLRQ
,QWUDSHULWRQHDOVHSVLV
8ULQDU\WUDFWLQIHFWLRQ
$QDVWRPRWLFOHDN
WRGD\V
'HHSYHQRXVWKURPERVLV
3XOPRQDU\HPEROXV
$VVHVVPHQWRISDWLHQW
$GHTXDWHDVVHVVPHQWUHTXLUHVDIXOOFOLQLFDOH[DPLQDWLRQ
5HVSLUDWRU\FRPSOLFDWLRQVRIWHQDVVRFLDWHGZLWKEUHDWKOHVVQHVVFRXJKDQGFKHVWSDLQ
:RXQGLQIHFWLRQVPD\VKRZHU\WKHPD SXUXOHQWGLVFKDUJHRUGHKLVFHQFH
$EGRPLQDOSDLQGLVWHQVLRQDQGLOHXVPD\VXJJHVWDFROOHFWLRQ
&DOISDLQDQGWHQGHUQHVVPD\VXJJHVWD'97
$SSURSULDWHFOLQLFDOVLJQVPD\EHSUHVHQW
,QYHVWLJDWLRQ
8VHIXOLQYHVWLJDWLRQVPD\LQFOXGH
&KHVW[UD\
(&*
$UWHULDOEORRGJDVHV
9HQWLODWLRQSHUIXVLRQVFDQ
$EGRPLQDOXOWUDVRXQGRU&7VFDQ
77
:RXQGGHKLVFHQFH
$IIHFWVDERXWRIPLGOLQHODSDURWRP\ZRXQGV
6HULRXVFRPSOLFDWLRQZLWKDPRUWDOLW\RIXSWR
'XHWRIDLOXUHRIZRXQGFORVXUHWHFKQLTXH
%URNHQVXWXUHVRUVOLSSHGNQRWV
,QDGHTXDWHPXVFOHELWHV
8VXDOO\RFFXUVEHWZHHQDQGGD\VSRVWRSHUDWLYHO\
2IWHQKHUDOGHGE\VHURVDQJXLQRXVGLVFKDUJHIURPZRXQG
6KRXOGEHDVVXPHGWKDWWKHGHIHFWLQYROYHVWKHZKROHRIWKHZRXQG
0DQDJHPHQW
2SLDWHDQDOJHVLD
6WHULOHGUHVVLQJWRZRXQG
)OXLGUHVXVFLWDWLRQ
(DUO\UHWXUQWRWKHDWUH
5HVXWXUHXQGHUJHQHUDODQDHVWKHVLD
([DFWWHFKQLTXHLVYDULDEOH
,QWHUUXSWHGRUPDVVFORVXUHZLWKQRQDEVRUEDEOHVXWXUHVRIWHQXVHG
7KHXVHRI
GHHSWHQVLRQ
VXWXUHVLVFRQWURYHUVLDO
%HOLHYHGE\VRPHWRVWUDQJXODWHPXVFOHDQGZHDNHQWKHFORVXUH
$OVRSDLQIXODQGDVVRFLDWHGZLWKLQFUHDVHGULVNRILQIHFWLRQ
78
3RVWRSHUDWLYHSXOPRQDU\FRPSOLFDWLRQV
3RVWRSHUDWLYHK\SR[LD
/DFNRIDOYHRODUYHQWLODWLRQ
+\SRYHQWLODWLRQDLUZD\REVWUXFWLRQRSLDWHV
%URQFKRVSDVP
3QHXPRWKRUD[
$UWHULRYHQRXVVKXQWLQJFROODSVHDWHOHFWDVLV
/DFNRIDOYHRODUSHUIXVLRQ
9HQWLODWLRQSHUIXVLRQPLVPDWFKSXOPRQDU\HPEROLVP
,PSDLUHGFDUGLDFRXWSXW
'HFUHDVHGDOYHRODUGLIIXVLRQ
3QHXPRQLD
3XOPRQDU\RHGHPD
$WHOHFWDVLV
+\SR[DHPLDLVRIWHQVHHQGXULQJWKHILUVWKRXUVDIWHUPRVWPDMRURSHUDWLRQV
'XHWRDUHGXFWLRQLQIXQFWLRQDOUHVLGXDOFDSDFLW\
6LJQLILFDQWDWHOHFWDVLVLVPRUHRIWHQVHHQ
,QWKRVHZLWKSUHH[LVWLQJOXQJGLVHDVH
:LWKXSSHUUDWKHUWKDQORZHUDEGRPLQDOLQFLVLRQV
2EHVHSDWLHQWV
&LJDUHWWHVPRNHUV
7KHEDVLFPHFKDQLVPVOHDGLQJWRDWHOHFWDVLVDUH
,QFUHDVHGYROXPHRIEURQFKLDOVHFUHWLRQV
,QFUHDVHGYLVFRVLW\RIVHFUHWLRQV
5HGXFHGWLGDOYROXPHDQGDELOLW\WRFRXJK
&OLQLFDOIHDWXUHV
3RVWRSHUDWLYHS\UH[LD XVXDOO\SUHVHQWLQJDWDERXWKRXUV
2IWHQDFFRPSDQLHGE\WDFK\FDUGLDDQGWDFK\SQRHD
([DPLQDWLRQVKRZVUHGXFHGDLUHQWU\GXOOQHVVRQSHUFXVVLRQDQGUHGXFHG EUHDWKVRXQGV
;UD\VKRZVFRQVROLGDWLRQDQGFROODSVH
7UHDWPHQW
,QWHQVLYHFKHVWSK\VLRWKHUDS\
1HEXOLVHGEURQFKRGLODWRUV
$QWLELRWLFVIRUDVVRFLDWHGLQIHFWLRQ
3QHXPRQLD
1RVRFRPLDOSQHXPRQLDRFFXUVLQRIDOOSDWLHQWVDGPLWWHGWRKRVSLWDO
2FFXUVLQRIXQYHQWLODWHG,78SDWLHQWV
2FFXUVLQRIYHQWLODWHG,78SDWLHQWV
2UJDQLVPVLQYROYHGLQFOXGH
*UDPQHJDWLYHEDFWHULD3VHXGRPRQDVDHUXJLQRVD(QWHUREDFWHU
6WDSKDXUHXV
$QDHUREHV
+DHPRSKLOXVLQIOXHQ]DH
1RHYLGHQFHWKDWSURSK\ODFWLFDQWLELRWLFVUHGXFHWKHULVNRISQHXPRQLD
79
$VSLUDWLRQSQHXPRQLWLV
$VSLUDWLRQRIJDVWULFFRQWHQWVUHVXOWVLQDFKHPLFDOSQHXPRQLWLV
0RVWFRPPRQO\VHHQLQDSLFDOVHJPHQWVRIULJKWORZHUOREH
,IXQUHFRJQLVHGRULQDGHTXDWHO\WUHDWHGLWFDQUHVXOWLQDVHFRQGDU\EDFWHULDOLQIHFWLRQ
6HFRQGDU\LQIHFWLRQLVXVXDOO\ZLWKJUDPQHJDWLYHDQGDQDHURELFRUJDQLVPV
7UHDWPHQW
7LOWWDEOHKHDGGRZQDQGVXFNRXWSKDU\Q[
&RQVLGHULQWXEDWLRQDQGHQGRWUDFKHDOVXFWLRQ
3URSK\ODFWLFDQWLELRWLFVVKRXOGEHJLYHQ
1RHYLGHQFHWKDWVWHURLGVUHGXFHLQIODPPDWRU\UHVSRQVH
%LEOLRJUDSK\
80
3HULRSHUDWLYHFDUGLRYDVFXODUFRPSOLFDWLRQV
&DUGLRYDVFXODUFRPSOLFDWLRQV
+\SRWHQVLRQ
+\SRYRODHPLD
9HQWULFXODUIDLOXUH
&DUGLRJHQLFVKRFN
$UUK\WKPLDV
&RQGXFWLRQ GHIHFWV
+\SHUWHQVLRQ
&DXVHVRISHULRSHUDWLYHDUUK\WKPLDV
3K\VLRORJLFDOGLVWXUEDQFHV
$FLGRVLV
+\SHUFDSQRHD
+\SR[DHPLD
(OHFWURO\WHLPEDODQFH
9DJDOPDQRHXYUHV
+\SRYRODHPLD
3DWKRORJLFDOGLVWXUEDQFHV
0\RFDUGLDOLVFKDHPLDRULQIDUFWLRQ
3XOPRQDU\HPEROXV
3KDHRFKURPRF\WRPD
3KDUPDFRORJLFDOFDXVHV
*HQHUDODQDHVWKHVLD
/RFDODQDHVWKHWLFWR[LFLW\
3RVLWLYHDQGQHJDWLYHLQRWURSHV
&DXVHVRISRVWRSHUDWLYHK\SHUWHQVLRQ
3DLQ
3UHH[LVWLQJK\SHUWHQVLRQ
+\SR[DHPLD
+\SHUFDSQLD
3RVLWLYHLQRWURSLFGUXJV
+\SHUUHQLQDHPLD
%LEOLRJUDSK\
81
2WKHUSRVWRSHUDWLYHFRPSOLFDWLRQV
&DXVHVRISRVWRSHUDWLYHKHSDWLFG\VIXQFWLRQ
,QFUHDVHGELOLUXELQORDG
%ORRGWUDQVIXVLRQ
+DHPRO\VLV
+DHPRO\WLFGLVRUGHUV
$EQRUPDOLWLHVRIELOLUXELQPHWDEROLVP
+HSDWRFHOOXODUGDPDJH
3UHH[LVWLQJKHSDWLFGLVHDVH
9LUDOKHSDWLWLV
6HSVLV
+\SRWHQVLRQ
+\SR[DHPLD
'UXJLQGXFHKHSDWLWLV
&RQJHVWLYHFDUGLDFIDLOXUH
*HQHUDODQDHVWKHWLFLQGXFHGKHSDWLFQHFURVLV
([WUDKHSDWLFELOLDU\REVWUXFWLRQ
*DOOVWRQHV
$VFHQGLQJFKRODQJLWLV
3DQFUHDWLWLV
&RPPRQELOHGXFWLQMXU\
&DXVHVRISRVWRSHUDWLYHUHQDOIDLOXUH
3UHUHQDOK\SRSHUIXVLRQ
6KRFNK\SRYRODHPLDFDUGLRJHQLFVHSWLF
5HQDODUWHU\GLVHDVH
5HQDOGLUHFWLQMXU\
$FXWHWXEXODUQHFURVLVIROORZLQJSUHUHQDOGUXJVP\RJORELQ
*ORPHUXORQHSKULWLV
,QWHUVWLWLDOQHSKULWLV
3RVWUHQDOREVWUXFWLRQ
%ODGGHURXWIORZREVWUXFWLRQ
6LQJOHXUHWHUFDOFXOXVWXPRXU
%RWKXUHWHUVEODGGHUPDOLJQDQF\
8ULQDU\WUDFWLQIHFWLRQV
RISDWLHQWVDGPLWWHGWRKRVSLWDOKDYHDXULQDU\FDWKHWHULQVHUWHG
5LVNRIFDWKHWHUUHODWHGLQIHFWLRQGHSHQGVRQ
$JHDQGVH[RISDWLHQW
'XUDWLRQRIFDWKHWHULVDWLRQ
,QGLFDWLRQIRUFDWKHWHULVDWLRQ
%DFWHULDOFRORQLVDWLRQRIFDWKHWHUVLVFRPPRQ
,IFDWKHWHUUHTXLUHGIRUPRUHWKDQZHHNVSDWLHQWVZLOOGHYHORSEDFWHULXULD
&RPPRQHVWRUJDQLVPVDUHHQWHUREDFWHUDQGHQWHURFRFFL
'RHVQRWUHTXLUHWUHDWPHQWXQOHVVSDWLHQWLVV\VWHPLFDOO\XQZHOO
,QIHFWLRQFDQEHSUHYHQWHGE\
0DLQWDLQLQJFORVHGGUDLQDJHV\VWHP
+LJKLQIHFWLRQFRQWUROVWDQGDUGV
3UHYHQWLQJEDFNIORZIURPFDWKHWHUEDJ
82
3K\VLRORJLFDOUHVSRQVHWRLQIHFWLRQWUDXPDDQGVXUJHU\
6LPLODUUHVSRQVHVVHHQWR WUDXPDEXUQVVHSVLVDQGVXUJHU\
,QYROYHVERWKORFDODQGV\VWHPLFUHDFWLRQV
([WHQWRIUHVSRQVHSURSRUWLRQDOWRVHYHULW\RILQVXOW
$QDSSURSULDWHUHVSRQVHPDLQWDLQVKRPHRVWDVLVDQGDOORZVZRXQGKHDOLQJ
$QH[FHVVLYHUHVSRQVHFDQSURGXFHDV\VWHPLFUHVSRQVH
7KLVFDQFDXVHWKHV\VWHPLFLQIODPPDWRU\UHVSRQVHV\QGURPH6,56
0XOWLSOHRUJDQVG\VIXQFWLRQV\QGURPH02'6FDQUHVXOWIURP6,56
,QLWLDWLRQRIUHVSRQVH
6HYHUDOIDFWRUVFDQLQLWLDWHWKHSK\VLRORJLFDOUHVSRQVHWRWUDXPD
0XOWLSOHVLPXOWDQHRXVIDFWRUVFDQKDYHDV\QHUJLVWLFHIIHFW
,PSRUWDQWIDFWRUVDUH
7LVVXHLQMXU\
,QIHFWLRQ
+\SRYRODHPLD
+\SR[LDRUK\SHUFDUELD
&RQWURORIUHVSRQVH
)RXUV\VWHPVFRQWUROWKHUHVSRQVHWRWUDXPD
6\PSDWKHWLFQHUYRXVV\VWHP
$FXWHSKDVHUHVSRQVH
(QGRFULQHUHVSRQVH
9DVFXODUHQGRWKHOLXP
6\PSDWKHWLFQHUYRXVV\VWHP
+DVGLUHFWDFWLRQVYLDWKHUHOHDVHRIQRUDGUHQDOLQHIURPV\PSDWKHWLFQHUYHV
+DVLQGLUHFWDFWLRQYLDWKHUHOHDVHRIDGUHQDOLQHIURPWKHDGUHQDOPHGXOOD
3URGXFHVFDUGLRYDVFXODUYLVFHUDODQGPHWDEROLFDFWLRQV
%ORRGGLYHUWHGIURPVNLQDQGYLVFHUDORUJDQV
+HDUWUDWHDQGP\RFDUGLDOFRQWUDFWLOLW\DUHLQFUHDVHG
%URQFKRGLODWLRQRFFXUVDQGJDVWURLQWHVWLQDOPRWLOLW\LVUHGXFHG
,QVXOLQSURGXFWLRQLVUHGXFHGDQGJOXFDJRQVSURGXFWLRQLQFUHDVHG
,QFUHDVHGJO\FRJHQRO\VLVLQFUHDVHVEORRGVXJDU OHYHOV
$FXWHSKDVHUHVSRQVH
7LVVXHLQMXU\UHVXOWVLQF\WRNLQHUHOHDVH
,PSRUWDQWF\WRNLQHVLQFOXGH71)D,/,/,/LQWHUIHURQDQGSURVWDJODQGLQV
&\WRNLQHVKDYHPDLQO\SDUDFULQHDFWLRQV
,PSRUWDQWLQUHJXODWLQJWKHLQIODPPDWRU\UHVSRQVH
2YHUIORZRIF\WRNLQHVLQWRV\VWHPLFFLUFXODWLRQLVLPSRUWDQWIDFWRULQ6,56
&\WRNLQHVVWLPXODWHWKHSURGXFWLRQRIDFXWHSKDVHSURWHLQVVXFKDV
&UHDFWLYHSURWHLQ
)LEULQRJHQ
&RPSOHPHQW&
+DSWRJORELQ
(QGRFULQHUHVSRQVH
7KHK\SRWKDODPXVSLWXLWDU\DGUHQDOD[LVLVLPSRUWDQW
7UDXPDLQFUHDVHV$&7+DQGFRUWLVROSURGXFWLRQ
6WHURLGVKDYHDSHUPLVVLYHDFWLRQLQPDQ\PHWDEROLFUHVSRQVHV
&DWDEROLFDFWLRQLQFUHDVHVSURWHLQEUHDNGRZQ
83
,QVXOLQDQWDJRQLVPLQFUHDVHVEORRGVXJDUOHYHOV
$QWLLQIODPPDWRU\DFWLRQVUHGXFHYDVFXODUSHUPHDELOLW\
$OGRVWHURQHLQFUHDVHVVRGLXPUHDEVRUSWLRQ
9DVRSUHVVLQLQFUHDVHVZDWHUUHDEVRUSWLRQDQGSURGXFHVYDVRFRQVWULFWLRQ
+LVWDPLQHLQFUHDVHVYDVFXODUSHUPHDELOLW\
7RWDO7WRWDODQGIUHH7OHYHOVDUHUHGXFHG
9DVFXODUHQGRWKHOLXP
1LWULFR[LGHSURGXFHVYDVRGLODWDWLRQ
3ODWHOHWDFWLYDWLQJIDFWRUDXJPHQWVWKHF\WRNLQHUHVSRQVH
3URVWDJODQGLQVSURGXFHYDVRGLODWDWLRQDQGLQGXFHSODWHOHWDJJUHJDWLRQ
2XWFRPHRUUHVSRQVH
,QIODPPDWRU\UHVSRQVHSURGXFHVFOLQLFDOO\DSSDUHQWORFDODQGV\VWHPLFHIIHFWV
7KHORFDOUHVSRQVHLVXVXDOO\WKHFDUGLQDOVLJQVRILQIODPPDWLRQ
7KHV\VWHPLFUHVSRQVHLQFOXGHV
,QFUHDVHG(&)YROXPHDQGK\SRYRODHPLD
,QFUHDVHGYDVFXODUSHUPHDELOLW\DQGRHGHPD
(DUO\UHGXFHGXULQHRXWSXWDQGLQFUHDVHGXULQHRVPRODOLW\
5HGXFHGIUHHZDWHUFOHDUDQFH
/DWHGLXUHVLVDQGLQFUHDVHGVRGLXPORVV
3\UH[LDLQWKHDEVHQFHRILQIHFWLRQ
(DUO\UHGXFWLRQLQPHWDEROLFUDWH
/DWHLQFUHDVHGPHWDEROLVPQHJDWLYHQLWURJHQEDODQFHDQGZHLJKWORVV
/LSRO\VLVDQGNHWRVLV
*OXFRQHRJHQHVLVYLDDPLQRDFLGEUHDNGRZQ
5HGXFHGVHUXPDOEXPLQ
+\SRQDWUDHPLDGXHWRLPSDLUHGVRGLXPSXPSDFWLRQ
$FLGEDVHGLVWXUEDQFH XVXDOO\DPHWDEROLFDONDORVLVRUDFLGRVLV
,PPXQRVXSSUHVVLRQ
+\SR[LDDQGFRDJXORSDWK\
/LPLWDWLRQRIUHVSRQVH
,QIODPPDWRU\UHVSRQVHFDQEHOLPLWHGE\
5HGXFLQJGHJUHHRIWUDXPDZLWKDSSURSULDWHDQGFDUHIXOVXUJHU\
5HGXFLQJLQIHFWLRQZLWKZRXQGFDUHDQGDQWLELRWLFV
0DLQWDLQLQJHQWHUDOQXWULWLRQ
&RQWUROOLQJSDLQ
&RUUHFWLQJK\SRYRODHPLD
&RUUHFWLQJDFLGEDVHGLVWXUEDQFH
&RUUHFWLQJK\SR[LD
%LEOLRJUDSK\
)RH[%$6\VWHPLFUHVSRQVHWR WUDXPD%U0HG%XOO
6WUHHW6-3ODQN/'+LOO*/2YHUYLHZRIPRGHUQPDQDJHPHQWRISDWLHQWVZLWKFULWLFDO
LQMXU\RUVHYHUHVHSVLV:RUOG-6XUJ
84
7UDXPD
7UDXPD
$VVHVVPHQWDQGUHVXVFLWDWLRQ
7UDXPDGHDWKVKDYHDWULPRGDOGLVWULEXWLRQ
)LUVWSHDN
:LWKLQPLQXWHVRILQMXU\
'XHWRPDMRUQHXURORJLFDORUYDVFXODULQMXU\
0HGLFDOWUHDWPHQWFDQUDUHO\LPSURYHRXWFRPH
6HFRQGSHDN
2FFXUVGXULQJWKH
JROGHQKRXU
'XHWRLQWUDFUDQLDOKDHPDWRPDPDMRUWKRUDFLFRUDEGRPLQDOLQMXU \
3ULPDU\IRFXVRILQWHUYHQWLRQIRUWKH$GYDQFHG7UDXPD/LIH6XSSRUW$7/6PHWKRGRORJ\
7KLUGSHDN
2FFXUVDIWHUGD\VRUZHHNV
'XHWRVHSVLVDQGPXOWLSOHRUJDQIDLOXUH
$7/60HWKRGRORJ\
3ULPDU\VXUYH\DQGUHVXVFLWDWLRQ
$ $LUZD\DQGFHUYLFDOVSLQH
% %UHDWKLQJ
& &LUFXODWLRQDQGKDHPRUUKDJHFRQWURO
' '\VIXQFWLRQRIWKHFHQWUDOQHUYRXVV\VWHP
( ([SRVXUH
6HFRQGDU\VXUYH\
'HILQLWLYHWUHDWPHQW
3ULPDU\VXUYH\DQGUHVXVFLWDWLRQ
$LUZD\DQGFHUYLFDOVSLQH
$OZD\VDVVXPHWKDWSDWLHQWKDVFHUYLFDOVSLQHLQMXU\
3ODFHLQKDUGFROODUDQGNHHSRQXQWLOFHUYLFDOVSLQHKDVEHHQ
FOHDUHG
,ISDWLHQWFDQWDONWKHQKHLVDEOHWRPDLQWDLQRZQDLUZD\
,IDLUZD\FRPSURPLVHGLQLWLDOO\DWWHPSWDFKLQOLIWDQGFOHDUDLUZD\RIIRUHLJQERGLHV
,IJDJUHIOH[SUHVHQWLQVHUWQDVRSKDU\QJHDODLUZD\
,IQRJDJUHIOH[SDWLHQWZLOOQHHGHQGRWUDFKHDOLQWXEDWLRQ
,IXQDEOHWRLQWXEDWHZLOOUHTXLUHDFULFRWK\URLGRWRP\
*LYHR[\JHQWKURXJKD+XGVRQPDVN
%UHDWKLQJ
&KHFNSRVLWLRQRIWUDFKHDUHVSLUDWRU\UDWHDQGDLUHQWU\
,IFOLQLFDOHYLGHQFHRIWHQVLRQSQHXPRWKRUD[SODFHYHQRXVFDQQXODWKURXJKVHFRQGLQWHUFRVWDO
VSDFHLQWKHPLGFODYLFXODUOLQH
,IRSHQFKHVWZRXQGVHDOZLWKRFFOXVLYHGUHVVLQJ
&LUFXODWLRQDQGKDHPRUUKDJHFRQWURO
$VVHVVSXOVHFDSLOODU\UHWXUQDQGVWDWHRIQHFNYHLQV
85
7UDXPD
,GHQWLI\H[VDQJXLQDWLQJKDHPRUUKDJHDQGDSSO\GLUHFWSUHVVXUH
3ODFHWZRODUJHFDOLEUHLQWUDYHQRXVFDQQXODV
7DNHYHQRXVEORRGIRU)%&8(DQG&URVVPDWFK
7DNHVDPSOHIRUDUWHULDOEORRGJDVVHV
*LYHLQWUDYHQRXVIOXLGV"FU\VWDOORLG"FROORLG
$WWDFKSDWLHQWWR(&*PRQLWRU
,QVHUWXULQDU\FDWKHWHU
'\VIXQFWLRQ
$VVHVVOHYHORIFRQVFLRXVQHVVXVLQJ$938PHWKRG
$ DOHUW9 UHVSRQGLQJWRYRLFH3 UHVSRQGLQJWRSDLQ8 XQUHVSRQVLYH
$VVHVVSXSLOVL]HHTXDOLW\DQGUHVSRQVLYHQHVV
([SRVXUH
)XOO\XQGUHVVSDWLHQWV
$YRLGK\SRWKHUPLD
86
7UDXPD
$LUZD\DQGYHQWLODWLRQ
7KHDLUZD\VKRXOGEHVHFXUHGDVWKHLQLWLDODFWLRQLQWUDXPDUHVXVFLWDWLRQ
$FHUYLFDOVSLQHLQMXU\VKRXOGEHDVVXPHGXQWLOSURYHQRWKHUZLVH
2[\JHQVKRXOGEHGHOLYHUHGDWKLJKFRQFHQWUDWLRQ
+\SHUFDUELDVKRXOGEHSUHYHQWHG
$LUZD\DVVHVVPHQW
7KHSDWLHQWVKRXOGEHDVNHGDVLPSOHTXHVWLRQ
,IKHUHVSRQGVDSSURSULDWHO\
7KHDLUZD\LVSDWHQW
9HQWLODWLRQLVLQWDFW
7KHEUDLQLVEHLQJDGHTXDWHO\SHUIXVHG
$JLWDWLRQLVRIWHQDVLJQRIK\SR[LD
$LUZD\PDQDJHPHQW
7KHDLPVRIDLUZD\PDQDJHPHQWDUH
7RVHFXUHDQLQWDFWDLUZD\
7RSURWHFWDMHRSDUGLVHGDLUZD\
7RSURYLGHDQDLUZD\ZKHQQRQHLVDYDLODEOH
7KHVHFDQEHDFKLHYHGZLWKEDVLFDGYDQFHGDQGVXUJLFDOWHFKQLTXHV
%DVLFOLIHVXSSRUW
)RUHLJQERGLHVVKRXOGEHUHPRYHGIURPWKHPRXWKDQGRURSKDU\Q[
6HFUHWLRQVDQGEORRGVKRXOGEHUHPRYHGZLWKVXFWLRQ
$LUZD\FDQXVXDOO\EHVHFXUHGZLWKDFKLQOLIWRUMDZWKUXVW
$QRURSKDU\QJHDORUQDVRSKDU\QJHDODLUZD\PD\EHUHTXLUHG
2[\JHQVKRXOGEHGHOLYHUHGDWDUDWHRIOPLQ
6KRXOGEHDGPLQLVWHUHGYLDDWLJKWILWWLQJPDVNZLWKUHVHUYRLUHJ+XGVRQPDVN
$Q)L2 RIVKRXOGEHDFKLHYDEOH
$GYDQFHGPHDVXUHV
,IDEVHQWJDJUHIOH[HQGRWUDFKHDOLQWXEDWLRQLVUHTXLUHG
,IQRFHUYLFDOVSLQHIUDFWXUHRURWUDFKHDOLQWXEDWLRQLVSUHIHUUHG
,IFHUYLFDOVSLQHLQMXU\FDQQRWEHH[FOXGHGFRQVLGHUQDVRWUDFKHDOLQWXEDWLRQ
7KHSRVLWLRQRIWKHWXEHVKRXOGEHFKHFNHG
2HVRSKDJHDOLQWXEDWLRQ
,QWXEDWLRQRI ULJKWPDLQEURQFKXV
)DLOXUHRILQWXEDWLRQ
$VSLUDWLRQ
6XUJLFDODLUZD\V
,IXQDEOHWRLQWXEDWHWKHWUDFKHDDVXUJLFDODLUZD\LVUHTXLUHG
7KHUHDUHIHZLQGLFDWLRQVIRUDQHPHUJHQF\WUDFKHRVWRP\
6XUJLFDODLUZD\FDQEHDFKLHYHGZLWKDQHHGOHRUVXUJLFDOFULFRWK\URLGRWRP\
1HHGOHFULFRWK\URLGRWRP\
&ULFRWK\URLGPHPEUDQHLVSXQFWXUHGZLWKDRU)UFDQQXOD
&RQQHFWHGWRR[\JHQVXSSO\YLDD<FRQQHFWRU
2[\JHQVXSSOLHGDWDUDWHRIOPLQ
-HWLQVXIIODWLRQDFKLHYHGE\RFFOXVLRQ RI<FRQQHFWLRQ
87
7UDXPD
,QVXIIODWLRQSURYLGHGRQHVHFRQGRQDQGIRXUVHFRQGVRII
-HWLQVXIIODWLRQFDQUHVXOWLQVLJQLILFDQWK\SHUFDUELD
6KRXOGRQO\EHXVHGIRU PLQXWHV
6XUJLFDOFULFRWK\URLGRWRP\
6PDOOLQFLVLRQPDGHRYHUFULFRWK\URLGPHPEUDQH
PPLQFLVLRQ PDGHLQPHPEUDQH
6PDOOWUDFKHRVWRP\WXEHLQVHUWHG
&RPSOLFDWLRQVRIVXUJLFDODLUZD\VLQFOXGH
$VSLUDWLRQ
+DHPRUUKDJHKDHPDWRPD
&HOOXOLWLV
)DOVHSDVVDJH
6XEJORWWLFVWHQRVLV
0HGLDVWLQDOHPSK\VHPD
9HQWLODWLRQ
,QWKHQRQLQWXEDWHGSDWLHQWYHQWLODWLRQFDQEHDFKLHYHGZLWKHLWKHU
0RXWKWRIDFHPDVN
%DJYDOYHIDFHPDVN
7KHODWHULVPRUHHIILFLHQWLISHUIRUPHGZLWKDWZRSHUVRQWHFKQLTXH
2QHPDLQWDLQVIDFHVHDO RWKHUYHQWLODWHVSDWLHQW
,IHQGRWUDFKHDO LQWXEDWLRQUHTXLUHG
6KRXOGEHSHUIRUPHGZLWKFULFRLGSUHVVXUH
,IULEIUDFWXUHVSUHVHQWQHHGWRLQVHUWFKHVWGUDLQRQVLGHRILQMXU\WRSUHYHQWSQHXPRWKRUD[
%LEOLRJUDSK\
88
7UDXPD
+\SRYRODHPLFVKRFN
*UDGHVRIK\SRYRODHPLFVKRFN
*UDGH
EORRGYROXPHaPO
0LOGUHVWLQJWDFK\FDUGLD
*UDGH
EORRGYROXPH PO

0RGHUDWHWDFK\FDUGLDIDOOLQSXOVHSUHVVXUHGHOD\HGFDSLOODU\UHWXUQ
*UDGH
EORRGYROXPH PO

+\SRWHQVLRQWDFK\FDUGLDORZXULQHRXWSXW
*UDGH
EORRGYROXPHPO
$VDERYHEXWZLWKSURIRXQGK\SRWHQVLRQ
)OXLGUHVXVFLWDWLRQ
(DUO\YROXPHLQWUDYDVFXODUYROXPHUHSODFHPHQWLQWUDXPDSDWLHQWVLVHVVHQWLDO
7KHLGHDOUHVXVFLWDWLRQIOXLGLVXQFHUWDLQ
7LPLQJDQGHQGSRLQWVRIUHVXVFLWDWLRQXQFOHDU
3DFNHGUHGEORRGFHOOV
3URYLGHEHVWYROXPHH[SDQVLRQDQGR[\JHQFDUU\LQJFDSDFLW\
1HHGVFURVVPDWFKLQJDQGQRWLPPHGLDWHO\DYDLODEOH
'LOXWLRQDOFRDJXORSDWK\RFFXUVZLWKPDVVLYHWUDQVIXVLRQ
&U\VWDOORLGYHUVXVFROORLGUHVXVFLWDWLRQ
0RUHWKDQ UDQGRPLVHGFRQWUROOHGWULDOVRIFU\VWDOORLGYVFROORLGUHVXVFLWDWLRQSXEOLVKHG
1RQHKDVVKRZQHLWKHUW\SHRIIOXLGWREHDVVRFLDWHGZLWKDUHGXFWLRQLQPRUWDOLW\
1RVLQJOHW\SHRIFROORLGKDVEHHQVKRZQWREHVXSHULRU
$OEXPLQVROXWLRQPD\EHDVVRFLDWHGZLWKVOLJKWLQFUHDVHLQPRUWDOLW\
&ROORLGVFDQPRUHUDSLGO\FRUUHFWK\SRYRODHPLD
$OVRPDLQWDLQLQWUDYDVFXODURQFRWLFSUHVVXUH
&U\VWDOORLGVUHTXLUHODUJHYROXPHEXWDUHHTXDOO\HIIHFWLYH
&KHDSHUDQGKDYHIHZHUDGYHUVHVLGHHIIHFWV
+\SHUWRQLFVROXWLRQV
6XEMHFWHGWRUHFHQWLQWHQVLYHLQYHVWLJDWLRQ
&DQUHVXVFLWDWHSDWLHQWUDSLGO\ZLWKDUHGXFHGYROXPHRIIOXLG
0D\UHGXFHFHUHEUDORHGHPDLQSDWLHQWVZLWKVHYHUHKHDGLQMXULHV
2[\JHQWKHUDSHXWLFDJHQWV
&XUUHQWO\EHLQJH[WHQVLYHO\ LQYHVWLJDWHGLQFOLQLFDOWULDOV
1RWZLGHO\XVHGDWSUHVHQWRXWVLGHRIFOLQLFDOWULDOV
3RWHQWLDODGYDQWDJHVRYHUEORRGLQFOXGH
)UHHSRWHQWLDOYLUDOFRQWDPLQDWLRQ
/RQJHUVKHOIOLIH
89
7UDXPD
8QLYHUVDO$%2FRPSDWLELOLW\
6LPLODUR[\JHQFDUU\LQJFDSDFLW\WREORRG
$JHQWVEHLQJVWXGLHGLQFOXGH
3HUIOXURFDUERQV
+XPDQKDHPRJORELQVROXWLRQV
3RO\PHULVHGERYLQHKDHPRJORELQ
,QWUDRVVHRXVLQIXVLRQ
9HQRXVDFFHVVFDQEHGLIILFXOWLQWKHK\SRYRODHPLFFKLOG
,IGLIILFXOW\H[SHULHQFHGWKHQLQWUDRVVHRXVURXWHFDQEHXVHGDVDQDOWHUQDWLYH
0HGXOODU\FDQDOLQDFKLOGKDVDJRRGEORRGVXSSO\
'UXJVDQGIOXLGVDUHDEVRUEHGLQWRYHQRXVVLQXVRLGVRIUHGPDUURZ
5HGPDUURZUHSODFHGE\\HOORZPDUURZDIWHU\HDUVRIDJH
/HVVHIIHFWLYHLQROGHUFKLOGUHQ
6\VWHPLFGUXJOHYHOVDUHVLPLODUWRWKRVHDFKLHYHGYLDWKHLQWUDYHQRXVURXWH
7HFKQLTXHLVJHQHUDOO\VDIHZLWKIHZFRPSOLFDWLRQV
,QGLFDWLRQV
0DMRUWUDXPD
([WHQVLYHEXUQV
&DUGLRSXOPRQDU\DUUHVW
6HSWLFVKRFN
&RQWUDLQGLFDWLRQV
,SVLODWHUDOORZHUOLPEIUDFWXUH
9DVFXODULQMXU\
7HFKQLTXH
,QWUDRVVHRXVDFFHVVDFKLHYHGZLWKVSHFLDOO\GHVLJQHGQHHGOHV
6KRUWVKDIWDOORZVDFFXUDWHSODFHPHQWZLWKLQWKHPHGXOODU\FDQDO
+DQGOHDOORZVFRQWUROOHGSUHVVXUHGXULQJLQWURGXFWLRQ
8VXDOO\LQVHUWHGLQWRDQWHURPHGLDOERUGHURIWLELDFPEHORZWLELDOWXEHUFOH
&RUUHFWSODFHPHQWFKHFNHGE\DVSLUDWLRQRIERQHPDUURZ
%RWKIOXLGVDQGGUXJVFDQEHDGPLQLVWHUHG
)OXLGRIWHQQHHGVWREHDGPLQLVWHUHGXQGHUSUHVVXUH
2QFHYHQRXVDFFHVVDFKLHYHGLQWUDRVVHRXVQHHGOHFDQEHUHPRYHG
&RPSOLFDWLRQV
&RPSOLFDWLRQVDUHUDUH
1HHGOHVDUHLQFRUUHFWO\SODFHGRUGLVSODFHGLQDERXWSDWLHQWV
7LELDOIUDFWXUH
&RPSDUWPHQWV\QGURPH
)DWHPEROLVP
6NLQQHFURVLV
2VWHRP\HOLWLV
%LEOLRJUDSK\
&KRL37<LS*4XLQRQH]/*HWDO&U\VWDOORLGVYVFROORLGVLQIOXLGUHVXVFLWDWLRQDV\VWHPDWLFUHYLHZ
&ULW&DUH0HG
90
7UDXPD
(YDQV5-0F&DEH07KRPDV5,QWUDRVVHRXVLQIXVLRQ%U-+RVS0HG
:KLQQH\55&RKQ60=DFXU6-)OXLGUHVXVFLWDWLRQIRUWUDXPDSDWLHQWVLQWKH FHQWXU\&XUU2S
&ULW&DUH
VW
91
7UDXPD
&KHVWDEGRPHQDQGSHOYLV
&KHVWWUDXPD
3ULPDU\VXUYH\FKHVWLQMXULHV
$LUZD\REVWUXFWLRQ
7HQVLRQSQHXPRWKRUD[
2SHQSQHXPRWKRUD[
0DVVLYHKDHPRWKRUD[
)ODLO FKHVW
&DUGLDFWDPSRQDGH
6HFRQGDU\VXUYH\FKHVWLQMXULHV
3XOPRQDU\FRQWXVLRQ
0\RFDUGLDOFRQWXVLRQ
$RUWLFGLVUXSWLRQ
7UDXPDWLFGLDSKUDJPDWLFKHUQLD
7UDFKHREURQFKLDOGLVUXSWLRQ
2HVRSKDJHDOGLVUXSWLRQ
0DQDJHPHQWRIWKHXQVWDEOHSDWLHQW
,QGLFDWLRQVIRUHPHUJHQF\URRPWKRUDFRWRP\
$FXWHSHULFDUGLDOWDPSRQDGHXQUHVSRQVLYHWRFDUGLDFPDVVDJH
([VDQJXLQDWLQJLQWUDWKRUDFLFKDHPRUUKDJH
,QWUDDEGRPLQDOKDHPRUUKDJHUHTXLULQJDRUWLFFURVVFODPSLQJ
1HHGIRULQWHUQDOFDUGLDFPDVVDJH
,QGLFDWLRQVIRUXUJHQWWKRUDFRWRP\
&KHVWGUDLQDJH!PORU!POSHUKRXU
/DUJHXQHYDFXDWHGFORWWHGKDHPRWKRUD[
'HYHORSLQJFDUGLDFWDPSRQDGH
&KHVWZDOOGHIHFW
0DVVLYHDLUOHDNGHVSLWHDGHTXDWHGUDLQDJH
3URYHQJUHDWYHVVHOLQMXU\RQDQJLRJUDSK\
3URYHQRHVRSKDJHDOLQMXU\
3URYHQGLDSKUDJPDWLFODFHUDWLRQ
7UDXPDWLFVHSDORUYDOYXODULQMXU\RIWKHKHDUW
+DHPRWKRUD[
&RPPRQDIWHUERWKSHQHWUDWLQJDQGEOXQWWUDXPD
3OHXUDOFDYLW\FDQKROGXSWROLWUHV RIEORRG
2QHOLWUHPD\DFFXPXODWHEHIRUHDSSDUHQWRQFKHVW[UD\
GXHWRLQMXU\WRLQWHUQDOPDPPDU\RULQWHUFRVWDOYHVVHOV
IURPSXOPRQDU\YDVFXODWXUH
%OHHGLQJXVXDOO\VWRSVZKHQOXQJUHH[SDQGHG
0RVWUHTXLUHQRPRUHWKDQVLPSOHFKHVWGUDLQDJH
3HULFDUGLDOWDPSRQDGH
0DMRUFRPSOLFDWLRQRISHQHWUDWLQJFKHVWWUDXPD
+DHPRSHULFDUGLXPSUHYHQWVGLDVWROLFILOOLQJRIWKHKHDUW
92
7UDXPD
&ODVVLFVLJQVDUH%HFN
VWULDG
+\SRWHQVLRQ
9HQRXVGLVWHQVLRQ
0XIIOHGKHDUWVRXQGV
0D\EHDVVRFLDWHGZLWKSXOVXVSDUDGR[XV
&KHVW[UD\VKRZVDJOREXODUKHDUW
8QVWDEOHSDWLHQWUHTXLUHVXUJHQWWKRUDFRWRP\
,QVWDEOHSDWLHQWGLDJQRVLVFDQEHFRQILUPHGE\
(FKRFDUGLRJUDSK\
3HULFDUGLRFHQWHVLV
6XE[LSKRLGSHULFDUGLRWRP\LVERWKDGLDJQRVWLFDQGWKHUDSHXWLFSURFHGXUH
%LEOLRJUDSK\
93
7UDXPD
3QHXPRWKRUD[
3QHXPRWKRUD[LVWKHSUHVHQFHRIDLUZLWKLQWKHSOHXUDOVSDFH
'XHWRGLVUXSWLRQRISDULHWDOYLVFHUDORUPHGLDVWLQDOSOHXUD
0D\DOVRRFFXUIURPVSRQWDQHRXVUXSWXUHRIVXESOHXUDOEOHE
$WHQVLRQSQHXPRWKRUD[RFFXUVZKHQSOHXUDIRUPDRQHZD\IODSYDOYH
7HQVLRQSQHXPRWKRUD[LVDPHGLFDOHPHUJHQF\
&ODVVLILFDWLRQ
6SRQWDQHRXVSQHXPRWKRUD[
3ULPDU\ QRLGHQWLILDEOHSDWKRORJ\
6HFRQGDU\ XQGHUO\LQJSXOPRQDU\GLVRUGHU
&DWDPHQLDO
7UDXPDWLF
%OXQWRUSHQHWUDWLQJWKRUDFLFWUDXPD
,DWURJHQLF
3RVWRSHUDWLYH
0HFKDQLFDOYHQWLODWLRQ
7KRUDFRFHQWHVLV
&HQWUDOYHQRXVFDQQXODWLRQ
3ULPDU\VSRQWDQHRXVSQHXPRWKRUD[
8VXDOO\RFFXUVLQ\RXQJKHDOWK\DGXOWPHQ
SDWLHQWVDUHOHVVWKDQ\HDUVROG
0DOHIHPDOHUDWLRLV
%LODWHUDOLQRIFDVHV
2FFXUVDVUHVXOWRIUXSWXUHRIDQDFTXLUHGVXESOHXUDOEOHE
%OHEVKDYHQRHSLWKHOLDOOLQLQJDQGDULVHIURPUXSWXUHRIWKHDOYHRODUZDOO
$SLFDOEOHEVIRXQGLQRISDWLHQWVXQGHUJRLQJWKRUDFRWRP\
)UHTXHQF\RIVSRQWDQHRXVSQHXPRWKRUD[ LQFUHDVHVDIWHUHDFKHSLVRGH
0RVWUHFXUUHQFHVRFFXUZLWKLQ\HDUVRIWKHLQLWLDOHSLVRGH
6HFRQGDU\VSRQWDQHRXVSQHXPRWKRUD[
$FFRXQWVIRURIVSRQWDQHRXVSQHXPRWKRUDFHV
FDQEHGXHWR
&KURQLFREVWUXFWLYHSXOPRQDU\GLVHDVHZLWKEXOODIRUPDWLRQ
,QWHUVWLWLDOOXQJGLVHDVH
3ULPDU\DQGPHWDVWDWLFQHRSODVPV
(KOHUV'DQORVV\QGURPH
0DUIDQ
VV\QGURPH
7UDXPDWLFSQHXPRWKRUD[
&DQUHVXOWIURPHLWKHUEOXQWRUSHQHWUDWLQJWUDXPD
7UDFKHREURQFKLDODQGRHVRSKDJHDOLQMXULHVFDQFDXVHERWKPHGLDV WLQDOHPSK\VHPDDQG
SQHXPRWKRUD[
,DWURJHQLFSQHXPRWKRUD[LVFRPPRQ
2FFXUVDIWHU
3QHXPRQHFWRP\
7KRUDFRFHQWHVLV
94
7UDXPD
+LJKSUHVVXUHPHFKDQLFDOYHQWLODWLRQ
6XEFODYLDQYHQRXVFDQQXODWLRQ
&OLQLFDOIHDWXUHV
3UHGRPLQDQWV\PSWRPLVDFXWHSOHXULWLFFKHVWSDLQ
'\VSQRHDUHVXOWVIRUPSXOPRQDU\FRPSUHVVLRQ
6\PSWRPVDUHSURSRUWLRQDOWRWKHVL]HRIWKHSQHXPRWKRUD[
$OVRGHSHQGRQWKHGHJUHHRISXOPRQDU\UHVHUYH
3K\VLFDOVLJQVLQFOXGH
7DFK\SQRHD
,QFUHDVHGUHVRQDQFH
$EVHQWEUHDWKVRXQGV
,QDWHQVLRQSQHXPRWKRUD[
7KHSDWLHQWPD\EHK\SRWHQVLYHZLWKDFXWHUHVSLUDWRU\GLVWUHVV
7KHWUDFKHDPD\EHVKLIWHGDZD\IURPWKHDIIHFWHGVLGH
1HFNYHLQVPD\EHHQJRUJHG
'LDJQRVLVFDQEHFRQILUPHGZLWKDFKHVW[UD\
0DQDJHPHQW
6SRQWDQHRXVSQHXPRWKRUD[
'HSHQGVV\PSWRPVDQGWKHUDGLRORJLFDOVL]HRIWKHSQHXPRWKRUD[
6PDOODV\PSWRPDWLFSQHXPRWKRUDFHVPD\VLPSO\EHIROORZHGZLWKVHULDOFKHVW[ UD\V
,IGUDLQDJHUHTXLUHGDFKHVWGUDLQVKRXOGEHLQVHUWHG
7KURXJKWKHWKLQWHUFRVWDOVSDFH
-XVWDERYHWKHXSSHUERUGHURIWKHULE
%OXQWLQVHUWLRQUDWKHUWKDQXVLQJWKHWURFDUVKRXOGEHXVHG
3RVLWLRQVKRXOGEHFKHFNHGZLWKDFKHVW[UD\
6KRXOGEHFRQQHFWHGWRDQXQGHUZDWHUVHDOSODFHGEHORZWKHOHYHORIWKHSDWLHQW
7HQVLRQSQHXPRWKRUD[
3URSK\ODFWLFFKHVWGUDLQVVKRXOGEHLQVHUWHGLQSDWLHQWVZLWKULEIUDFWXUHVSULRUWRYHQWLODWLRQ
7HQVLRQSQHXPRWKRUD[UHTXLUHVLPPHGLDWHQHHGOHDVSLUDWLRQ
,QVHUWHGDQWHULRUO\WKURXJKWKHQGLQWHUFRVWDOVSDFH
&KHVWGUDLQFDQWKHQEHLQVHUWHG
6XUJHU\
6XUJHU\LVUHTXLUHGIRU
$LUOHDNSHUVLVWLQJIRUPRUHWKDQGD\V
)DLOXUHRIOXQJUHH[SDQVLRQ
5HFXUUHQWVSRQWDQHRXVSQHXPRWKRUD[
6XUJLFDORSWLRQVLQFOXGH
3DUWLDOSOHXUHFWRP\
2SHUDWLYHDEUDVLRQRISOHXUDOOLQLQJ
5HVHFWLRQRI SXOPRQDU\EXOODH
3RRUULVNSDWLHQWVPD\EHQHILWIURPFKHPLFDOSOHXURGHVLVZLWKWHWUDF\FOLQH
%LEOLRJUDSK\
%DXPDQQ0+6WUDQJH&7UHDWPHQWRIVSRQWDQHRXVSQHXPRWKRUD[ &KHVW
95
7UDXPD
&KHVWGUDLQV
&KHVWGUDLQLVDFRQGXLWWRUHPRYHDLURUIOXLGIURPWKHSOHXUDOFDYLW\
7KHIOXLGFDQEHEORRGSXVRUDSOHXUDOHIIXVLRQ
$OORZVUHH[SDQVLRQRIWKHXQGHUO\LQJOXQJ
0XVWSUHYHQWHQWU\RIDLURUGUDLQHGIOXLGEDFNLQWRWKHFKHVW
$FKHVWGUDLQPXVWWKHUHIRUHKDYHWKUHHFRPSRQHQWV
$QXQREVWUXFWHGFKHVWGUDLQ
$FROOHFWLQJFRQWDLQHUEHORZFKHVWOHYHO
$RQHZD\PHFKDQLVPVXFKDVZDWHUVHDORU+HLPOLFKYDOYH
0HFKDQLVPRIDFWLRQ
'UDLQDJHRFFXUVGXULQJH[SLUDWLRQZKHQSOHXUDOSUHVVXUHLVSRVLWLYH
)OXLGZLWKLQSOHXUDOFDYLW\GUDLQVLQWRZDWHUVHDO
$LUEXEEOHVWKURXJKZDWHUVHDOWRRXWVLGHZRUOG
7KHOHQJWKRIGUDLQEHORZIOXLGOHYHOLVLPSRUWDQW
,IJUHDWHUWKDQFPVLQFUHDVHVUHVLVWDQFHWRDLUGUDLQDJH
)LJXUH 3ULQFLSOHVRIDFKHVWGUDLQ
,QVHUWLRQ
8QOHVVHPHUJHQF\VLWXDWLRQWKHQSUHSURFHGXUHFKHVW[UD\VKRXOGEHSHUIRUPHG
'UDLQXVXDOO\LQVHUWHGXQGHUORFDODQDHVWKHVLDXVLQJDVHSWLFWHFKQLTXH
WK
,QVHUWHGLQ LQWHUFRVWDOVSDFHLQPLGD[LOODU\OLQH
,QVHUWHGRYHUXSSHUERUGHURIULEWRDYRLGLQWHUFRVWDOYHVVHOVDQGQHUYHV
%OXQWGLVVHFWLRQDQGLQVHUWLRQRIILQJHUVKRXOGHQVXUHWKDWSOHXUDOFDYLW\LVHQWHUHG
8VHGWREHWDXJKWWKDW
7RGUDLQIOXLGLWVKRXOGEHLQVHUWHGWREDVHRISOHXUDOFDYLW\
7RGUDLQDLULWVKRXOGEHLQVHUWHGWRZDUGVDSH[RIOXQ J
3UREDEO\GRHVQRWPDWWHUSURYLGHGWKHUHLVQRORFXODWLRQRIIOXLGZLWKLQSOHXUDOFDYLW\
$ODUJHGUDLQ)URUDERYHVKRXOGEHXVHGWRGUDLQEORRGRUSXV
96
7UDXPD
'UDLQVKRXOGEHDQFKRUHGDQGSXUVHVWULQJRU=VWLWFKLQVHUWHGLQDQWLFLSDWLRQRIUHPRYDO
'RHVDQG GRQWVRIFKHVWGUDLQV
$YRLGFODPSLQJRIGUDLQDVLWFDQUHVXOWLQDWHQVLRQSQHXPRWKRUD[
'UDLQVKRXOGRQO\EHFODPSHGZKHQFKDQJLQJWKHERWWOH
$OZD\VNHHSGUDLQEHORZWKHOHYHORIWKHSDWLHQW
,IOLIWHGDERYHFKHVWOHYHOFRQWHQWVRIGUDLQFDQVLSKRQEDFN LQWRFKHVW
,IGLVFRQQHFWLRQRFFXUVUHFRQQHFWDQGDVNSDWLHQWWRFRXJK
,ISHUVLVWHQWDLUOHDNFRQVLGHUORZSUHVVXUHVXFWLRQ
2EVHUYHIRUSRVWH[SDQVLRQSXOPRQDU\RHGHPD
5HPRYDO
5HPRYHGUDLQDVVRRQDVLWKDVVHUYHGLWSXUSRVH
)RUDVLPSOHSQHXPRWKRUD[LWFDQRIWHQEHUHPRYHGZLWKLQKRXUV
7RUHPRYHGUDLQDVNSDWLHQWWRSHUIRUPD9DOVDOYDPDQRHXYUH
5HPRYHGUDLQDWWKHKHLJKWRIH[SLUDWLRQ
7LHWRSUHLQVHUWHGSXUVHVWULQJRU=VWLWFK
3HUIRUPDSRVWSURFHGXUHFKHVW[UD\WRH[FOXGHDSQHXPRWKRUD[
%LEOLRJUDSK\
3DUU\*:0RUJDQ:(6DODPD)'0DQDJHPHQWRIKDHPRWKRUD[ $QQ5&ROO6XUJ(QJ

7RPOLQVRQ0$7UHDVXUH7,QVHUWLRQRIDFKHVWGUDLQ+RZWRGRLW %U-+RVS0HG
97
7UDXPD
$EGRPLQDOWUDXPD
,QGLFDWLRQVIRUODSDURWRP\
8QH[SODLQHGVKRFN
5LJLGVLOHQWDEGRPHQ
(YLVFHUDWLRQ
5DGLRORJLFDOHYLGHQFHRILQWUDSHULWRQHDOJDV
5DGLRORJLFDOHYLGHQFHRIUXSWXUHGGLDSKUDJP
*XQVKRWZRXQGV
3RVLWLYHUHVXOWRQSHULWRQHDOODYDJH
,PDJLQJ
(LWKHU&7RUXOWUDVRXQGFDQEHXVHGIRUWKHDVVHVVPHQWRIDEGRPLQDOWUDXPD
&7VFDQQLQJLVSUHIHUUHGPHWKRGEXWUHTXLUHVSDWLHQWWREHFDUGLRYDVFXODUO\VWDEOH
8OWUDVRXQGKDVKLJKVSHFLILFLW\
,WGRHVKRZHYHUKDYHDORZVHQVLWLYLW\IRUWKHGHWHFWLRQRI
)UHHIOXLG
9LVFHUDOGDPDJH
3HULWRQHDOODYDJH
,QGLFDWLRQV
(TXLYRFDOFOLQLFDOH[DPLQDWLRQ
'LIILFXOW\LQDVVHVVLQJSDWLHQW DOFRKROGUXJVKHDGLQMXU\HWF
3HUVLVWHQWK\SRWHQVLRQGHVSLWHDGHTXDWHIOXLGUHVXVFLWDWLRQ
0XOWLSOHLQMXULHV
6WDEZRXQGVZKHUHWKHSHULWRQHXPLVEUHDFKHG
0HWKRG
(QVXUHWKDWFDWKHWHUDQG1*7DUHLQSODFH
8QGHU/$PDNHYHUWLFDOVXEXPELOLFDOLQFLVLRQGLYLGLQJOLQHDDOED
,QFLVHSHULWRQHXPDQGLQVHUWSHULWRQHDOGLDO\VLVFDWKHWHU
$VSLUDWHDQ\IUHHEORRGRUHQWHULFFRQWHQWV
,IQREORRGDVSLUDWHGLQIXVH/RIQRUPDOVDOLQHDQGDOORZPLQWRHTXLOLEUDWH
3ODFHGUDLQDJHEDJRQIORRUDQGDOORZWRGUDLQ
6HQGPOWRODERUDWRU\IRUPHDVXUHPHQWRI5%&:&&DQGPLFURELRORJLFDOH[DPLQDWLRQ
3RVLWLYHUHVXOW
5HGFHOOFRXQW!PP

:KLWHFHOOFRXQW!PP
3UHVHQFHRIELOHEDFWHULDRUIDHFDOPDWHULDO

'DPDJH&RQWURO6XUJHU\
)ROORZLQJPXOWLSOHWUDXPDSRRURXWFRPHLVVHHQLQWKRVHZLWK
+\SRWKHUPLDFRDJXORSDWK\DQGVHYHUHDFLGRVLV
3URORQJHGVXUJHU\FDQH[DFHUEDWHWKHVHIDFWRUV
$VDUHVXOWWKHFRQFHSWRI
GDPDJHFRQWURO
VXUJHU\KDVEHHQGHYHORSHG
6XJJHVWVWKDWLQWKHHDUO\PDQDJHPHQWRIPDMRUDEGRPLQDOWUDXPDVXUJHU\VKRXOGDLPWR
&RQWUROKDHPRUUKDJHZLWKOLJDWLRQRIYHVVHOVDQGSDFNLQJ
&RQWUROFRQWDPLQDWLRQZLWKFODPSVDQGVWDSOLQJGHYLFHV
98
7UDXPD
7KLVVKRXOGEHIROORZHGE\DSHULRGRIVWDELOLVDWLRQRQWKHLQWHQVLYHFDUHXQLW
3ODQQHGUHODSDURWRP\DW KRXUVDOORZV
'HILQLWLYHWUHDWPHQWRILQMXULHV
5HVWRUDWLRQRILQWHVWLQDOFRQWLQXLW\
7KLVDSSURDFKKDVEHHQVKRZQWREHDVVRFLDWHGZLWKDUHGXFHGPRUWDOLW\
%LEOLRJUDSK\
%URRNHV$-5RZODQGV%-%OXQWDEGRPLQDOLQMXULHV%ULW0HG%XOO
3DUNV5:&KU\VRV('LDPRQG70DQDJHPHQWRIOLYHUWUDXPD %U-6XUJ

6WHQJHO'%DXZHQV-6HKRXOL-HWDO6\VWHPLFUHYLHZDQGPHWDDQDO\VLVRIHPHUJHQF\
XOWUDVRQRJUDSK\IRUEOXQWDEGRPLQDOWUDXPD%U-6XUJ
99
7UDXPD
5HQDOWUDXPD
,Q8.RIUHQDOLQMXULHVUHVXOWIURPEOXQWWUDXPD
,VRODWHGUHQDOWUDXPDLVXQFRPPRQ
$ERXWKDYHDVVRFDLWHGLQWUDDEGRPLQDOLQMXULHV
'LUHFWWUDXPDFUXVKHVNLGQH\DJDLQVWULEV
,QGLUHFWWUDXPDFDQUHVXOWLQYDVFXODURUSHOYLXUHWHULFGLVUXSWLRQ
&OLQLFDOIHDWXUHV
/RLQRUDEGRPLQDODEUDVLRQVRUEUXLVLQJ
/RLQWHQGHUQHVV
/RVVRIORLQFRQWRXU
/RLQPDVV
0DFURVFRSLFKDHPDWXULD FORWFROLF
$UHQDOSHGLFOHLQMXU\LVSRVVLEOHLQWKHDEVHQFHRIKDHPDWXULD
,PDJLQJ
7KHDLPVRILPDJLQJDUHWR
$VVHVVH[WHQWRILQMXU\
'HWHUPLQHIXQFWLRQRIFRQWUDODWHUDONLGQH\
3ODLQUDGLRJUDSKPD\VKRZULEIUDFWXUHVORVVRISVRDVVKDGRZDQGUHQDORXWOLQH
6WDEOHSDWLHQWVZLWKPLFURVFRSLFKDHPDWXULDGRQRWUHTXLUHDQ,98
,98ZLOOGHWHFWH[WUDYDVDWLRQRIXULQHDQGGLVWRUWLRQRIFDOLFHDOV\VWHP
3URYLGHVDFUXGHLQGH[RI UHQDOIXQFWLRQ
)DLOXUHRIH[FUHWLRQVXJJHVWVUHQDOSHGLFOHLQMXU\DQGQHHGIRUDQJLRJUDSK\
8OWUDVRXQGZLOOLGHQWLI\KDHPDWRPDVDQGSHULUHQDOFROOHFWLRQV
&ODVVLILFDWLRQ
&ODVV, 5HQDOFRQWXVLRQRUFRQWDLQHGVXEFDSVXODUKDHPDWRPD
&ODVV,, &RUWLFDOODFHUDWLRQZLWKRXWXULQDU\H[WUDYDVDWLRQ
&ODVV,,, 3DUHQFK\PDOOHVLRQH[WHQGLQJPRUHWKDQFPLQWRUHQDOVXEVWDQFH
&ODVV,9 /DFHUDWLRQH[WHQGLQJDFURVVFRUWLFRPHGXOODU\MXQFWLRQ
&ODVV9 5HQDOIUDJPHQWDWLRQRUUHQRYDVFXODUSHGLFOHLQMXU\
0DQDJHPHQW
LQMXULHVDUHPLQRU&ODVV,,,DQGFDQEHPDQDJHGFRQVHUYDWLYHO\

(DUO\VXUJLFDOLQWHUYHQWLRQLVUHTXLUHGIRU
5HQRYDVFXODUSHGLFOHLQMXU\
3HOYLXUHWHULFMXQFWLRQGLVUXSWLRQ
6KRFNZLWKVLJQVRILQWUDSHULWRQHDORUUHWURSHULWRQHDOWUDXPD
6XUJHU\VKRXOGEHSHUIRUPHGWKURXJKDPLGOLQHLQFLVLRQDQGWUDQVSHULWRQHDODSSURDFK
&RQWURORIWKHUHQDOSHGLFOHVKRXOGEHREWDLQHGEHIRUHWKHUHWURSHULWRQHDOKDHPDWRPDLV
RSHQHG
6XUJLFDOSULRULWLHVDUH
6DYHOLNH HDUO\QHSKUHFWRP\PD\EHUHTXLUHG
5HPRYHGHYLWDOLVHGWLVVXH
3UHVHUYHUHQDOIXQFWLRQ FRQVLGHUSDUWLDOQHSKUHFWRP\LISRVVLEOH
5HSDLUDQGGUDLQFROOHFWLQJV\VWHP
100
7UDXPD
/DWHFRPSOLFDWLRQV
+\SHUWHQVLRQ
$UWHULRYHQRXVILVWXOD
+\GURQHSKURVLV
3VHXGRF\VWRUFDOFXOLIRUPDWLRQ
&KURQLFS\HORQHSKULWLV
/RVVRIUHQDOIXQFWLRQ
%LEOLRJUDSK\
*RRGDFUH%YDQ6RQQHQEHUJ(5DGLRORJLFHYDOXDWLRQRIUHQDOWUDXPD -,QWHQVLYH&DUH0HG

101
7UDXPD
/RZHUXULQDU\WUDFWWUDXPD
0DQDJHPHQWLVFRQWURYHUVLDODQGRIWHQFRQIXVLQJ
,QPXOWLSO\LQMXUHGSDWLHQWWKHUHDUHWKHFRQIOLFWLQJSULRULWLHVRI
0RQLWRULQJXULQHRXWSXWZLWKDXUHWKUDOFDWKHWHU
3UHYHQWLQJH[DFHUEDWLRQRIDXUHWKUDOLQMXU\
/RZHUXULQDU\WUDFWLQMXU\VKRXOGEHVXVSHFWHGLIWKHIROORZLQJDUHVHHQ
%ORRGIURPXUHWKUDOPHDWXV
3HULQHDOEUXLVLQJ
+LJKULGLQJSURVWDWHRQUHFWDOH[DPLQDWLRQ
3RWHQWLDOO\XVHIXOLQYHVWLJDWLRQVLQFOXGH,98DVFHQGLQJXUHWKURJUDPRUF\VWRJUDP
%ODGGHULQMXU\
2IWHQDVVRFLDWHGZLWKSHOYLFIUDFWXUHV
$OVRVHHQIROORZLQJGLUHFWEORZWRDEGRPHQZLWKDI XOOEODGGHU
5XSWXUHFDQHLWKHULQWUDSHULWRQHDORUH[WUDSHULWRQHDO
&OLQLFDOIHDWXUHVLQFOXGHORZHUDEGRPLQDOSHULWRQLVPDQGLQDELOLW\WRSDVVXULQH
,98PD\VKRZXULQHH[WUDYDVDWLRQ
'LDJQRVLVFDQEHFRQILUPHGE\F\VWRJUDSK\
,QWUDSHULWRQHDOUXSWXUHUHTXLUHVODSDURWRP\EODGGHUUHSDLUXUHWKUDODQGVXSUDSXELFGUDLQDJH
([WUDSHULWRQHDOUXSWXUHFDQEHWUHDWHGFRQVHUYDWLYHO\ZLWKXUHWKUDOGUDLQDJH
%XOEDUXUHWKUDOLQMXU\
,VWKHFRPPRQHVWW\SHRIXUHWKUDOLQMXU\
8VXDOO\WKHUHVXOWRIGLUHFWWUDXPDFDXVHVE\IDOOLQJDVWULGHDQREMHFW
&OLQLFDOIHDWXUHVLQFOXGHEORRGIURPPHDWXVDQGSHULQHDOEUXLVLQJ
,IXQDEOHWRSDVVXULQHDXUHWKUDOFDWKHWHUVKRXOGQRWEHSDVVHG
&DQFRQYHUWDSDUWLDOWHDULQWRDFRPSOHWHXUHWKUDOLQMXU\
,IFDWKHWHULVUHTXLUHGLWVKRXOGEHLQVHUWHGYLDWKHVXSUDSXELFURXWH
'LDJQRVLVFDQEHFRQILUPHGE\DVFHQGLQJXUHWKURJUDP
&RPSOLFDWLRQVLQFOXGHDXUHWKUDOVWULFWXUH
0HPEUDQRXVXUHWKUDOLQMXU\
2IWHQRFFXULQPXOWLSO\LQMXUHGSDWLHQWDQGXQOHVVVXVSHFWHGFDQEHPLVVHG
RIPHQZLWKSHOYLFIUDFWXUHKDYHDPHPEUDQRXVXUHWKUDOLQMXU\
7HDUFDQEHHLWKHUSDUWLDORUFRPSOHWH
3DUWLDOLQMXULHVSUHVHQWZLWKXUHWKUDOEOHHGLQJDQGSHULQHDOEUXLVLQJ
&RPSOHWHLQMXULHVSUHVHQWZLWKLQDELOLW\WRSDVVXULQH
2QUHFWDOH[DPLQDWLRQWKHEODGGHUDQGSURVWDWHLVGLVSODFHGXSZDUGV
,ILQMXU\VXVSHFWHGDXUHWKUDOFDWKHWHUVKRXOGQRWEHSDVVHG
'LDJQRVLVFDQEHFRQILUPHGE\DVFHQGLQJXUHWKURJUDP
7UHDWPHQWLVZLWKVXSUDSXELFFDWKHWHU
8UHWKURSODVW\PD\ EHUHTXLUHG
&RPSOLFDWLRQVLQFOXGHVWULFWXUHLPSRWHQFHDQGLQFRQWLQHQFH
%LEOLRJUDSK\
102
7UDXPD
6SOHQLFLQMXU\
6SOHQLFLQMXU\FDQEHHLWKHUDFFLGHQWDORULDWURJHQLF
0RVWFRPPRQO\DVVRFLDWHGZLWKEOXQWWUDXPD
2IWHQRFFXUVLQWKHSUHVHQFHRIORZHUULEIUDFWXUHV
0D\EHFRPPRQFOLQLFDOO\DSSDUHQWHLWKHUHDUO\RUGHOD\HG
'HOD\HGLQMXU\LVXVXDOO\GXHWRUXSWXUHRIVXEFDSVXODUKDHPDWRPD
RIVSOHQLFLQMXULHVRFFXULQDGYHUWHQWO\GXULQJRWKHUDEGRPLQDORSHUDWLRQV
,QVRPHSDWLHQWVVSRQWDQHRXVUXSWXUHFDQRFFXUIROORZLQJWULYLDOWUDXPD
6SOHHQLVLQYDULDEO\DEQRUPDOGXHWRIRUH[DPSOHPDODULDRULQIHFWLRXVPRQRQXFOHRVLV
&OLQLFDOIHDWXUH
&OLQLFDOIHDWXUHVGHSHQGRQ
([WHQWRIEORRGORVV
3UHVHQFHRIDVVRFLDWHGLQMXULHV
&OLQLFDOIHDWXUHVUDQJHIURPOHIWXSSHUTXDGUDQWSDLQWRVKRFNDQGSHULWRQLWLV
WRRISDWLHQWVKDYHRWKHUDVVRFDLWHGLQWUDSHULWRQHDOLQMXULHV
*UDGLQJ
*UDGH 0LQRUVXEFDSVXODUWHDURUKDHPDWRPD
*UDGH 3DUHQFK\PDOLQMXU\QRWH[WHQGLQJWRWKHKLOXP
*UDGH 0DMRUSDUHQFK\PDOLQMXU\LQYROYLQJYHVVHOVDQGKLOXP
*UDGH 6KDWWHUHGVSOHHQ
0DQDJHPHQW
,IFDUGLRYDVFXODUO\XQVWDEOHUHTXLUHVUHVXVFLWDWLRQDQGHDUO\VXUJHU\
,IFDUGLRYDVFXODUO\VWDEOHFRQVLGHUHLWKHUXOWUDVRXQGRU&7VFDQ
,ILVRODWHG*UDGHRUVSOHQLFLQMXU\PD\EHVXL WDEOHIRUFRQVHUYDWLYHPDQDJHPHQW
6XUJLFDORSWLRQV
6XUJLFDOPDQDJHPHQWFDQLQYROYHHLWKHUVSOHQHFWRP\RUVSOHQLFUHSDLU
0DLQEHQHILWRIUHWDLQLQJWKHVSOHHQLVWKHSUHYHQWLRQRIRYHUZKHOPLQJSRVWVSOHQHFWRP\
LQIHFWLRQ236,
,IVSOHQLFFRQVHUYDWLRQDWWHPSWHGQHHGWRSUHVHUYHPRUHWKDQRIWLVVXH
&RQVHUYDWLYHPDQDJHPHQW
2YHUDOORISDWLHQWVDUHVXLWDEOHIRUFRQVHUYDWLYHPDQDJHPHQW
&KLOGUHQFDQRIWHQEHPDQDJHGFRQVHUYDWLYHO\DVWKH\KDYH
0RUHORZJUDGHLQMXULHV
)HZHUPXOWLSOHLQMXULHV
6KRXOGEHPRQLWRUHGLQKLJKGHSHQGHQF\XQLW
5HTXLUHFDUGLRYDVFXODUDQGKDHPDWRORJLFDOPRQLWRULQJ
,IVXFFHVVIXOSDWLHQWVVKRXOGUHPDLQRQ
%HGUHVWIRUKRXUV
/LPLWHGSK\VLFDODFWLYLW\IRUZHHNV
1RFRQWDFWVSRUWVIRUPRQWKV
6XUJHU\QHHGHGLIFOLQLFDOO\K\SRYRODHPLFRIWKH\KDYHDIDOOLQJKDHPDWRFULW
$SSUR[LPDWHO\RISDWLHQWVIDLOFRQVHUYDWLYHPDQDJHPHQW
8VXDOO\RFFXUVZLWKLQWKHILUVWKRXUVRILQMXU\
)DLOHGFRQVHUYDWLYHPDQDJHPHQWRIWHQUHVXOWVLQVSOHQHFWRP\
2YHUDOOPRUHVSOHHQVFDQRIWHQEHFRQVHUYHGE\HDUO \VXUJHU\
103
7UDXPD
%LEOLRJUDSK\
%UDVHO.-'H/LVOH&02OVRQ&-%HUJVWURP'&6SOHQLFLQMXU\WUHQGVLQHYDOXDWLRQDQG
PDQDJHPHQW-7UDXPD
'XSX\'(5DSWRSRXORV9)LQN03&XUUHQWFRQFHSWVLQVSOHQLFWUDXPD -,QWHQVLYH&DUH0HG

3DFKWHU+/*XWK$$+HIVWHWWHU656SHQFHU)&&KDQJLQJSDWWHUQVLQWKHPDQDJHPHQWRIVSOHQLF
WUDXPDWKHLPSDFWRIQRQRSHUDWLYHPDQDJHPHQW$QQ6XUJ
6DQGHU01&LYLO,$GXOWVSOHQLFLQMXULHVWUHDWPHQWSDWWHUQVDQGSUHGLFWLYHLQGLFDWRUV$XVW1=-6XUJ

104
7UDXPD
&HQWUDOQHUYRXVV\VWHPWUDXPD
+HDGLQMXULHV
3DWKRSK\VLRORJ\RIKHDGLQMXU\
2QHPLOOLRQSDWLHQWVDWWHQG$(HDFK\HDULQ8.ZLWKKHDGLQMXU\
DUHPLQRU*&6
DUHPRGHUDWH*&6
DUHVHYHUH*&6
6HYHUHKHDGLQMXULHVDFFRXQWIRURIWUDXPDUHODWHGGHDWKV
3ULPDU\EUDLQLQMXU\
'DPDJHFDXVHGDWWLPHRILPSDFW
&DQEHIRFDORUGLIIXVH
'LIIXVHD[RQDOLQMXU\LVGXHWRGHFHOHUDWLRQDQGVKHDULQJIRUFHV
'HSHQGHQWRQH[WHQWRILQLWLDOLQMXU\
1RWDEOHWREHWUHDWHG
6HFRQGDU\EUDLQLQMXU\
,QVXOWLPSRVHGDIWHUSULPDU\LQMXU\
'XHWR
+\SR[DHPLD
+\SHUFDSQLD
6\VWHPLFK\SRWHQVLRQ
,QWUDFUDQLDOKDHPDWRPD
,QWUDFUDQLDOK\SHUWHQVLRQ
7KHHDUO\WUHDWPHQWRIKHDGLQMXUHGSDWLHQWVLVDLPHGDWWKHSUHYHQWLRQRIVHFRQGDU\EUDLQLQMXU\
$XWRUHJXODWLRQRIFHUHEUDOEORRGIORZLVORVWDIWHUKHDGLQMXU\
6NXOO;UD\V
&DXVHVRILQWUDFUDQLDOFDOFLILFDWLRQ
1RUPDO
3LQHDOJODQG
'XUDOFRPPRQO\IDO[
9DVFXODUFDURWLGDUWHULHV
%DVDOJDQJOLD
$EQRUPDO
7XPRXUV FUDQLRSKDU\QJLRPDPHQLQJLRPD
$UWHULRYHQRXVPDOIRUPDWLRQV
$QHXU\VPV
9DXOWRUVLQXVRVWHRPDV
&ULWHULDIRUVNXOO[UD\VDIWHUUHFHQWKHDGLQMXU\
/RVVRIFRQVFLRXVQHVVRUDPQHVLDDWDQ\WLPH
1HXURORJLFDOV\PSWRPVRUVLJQV
&6)OHDNIURPQRVHRUHDU
6XVSHFWHGSHQHWUDWLQJLQMXU\RUIRUHLJQERG\
7HQVHIRQWDQHOOHVFDOSEUXLVLQJRUODFHUDWLRQLQDFKLOG\HDUV
3UHVHQFHRIRWKHUWUDXPDWKDWPLJKWLPSO\DVWURQJLPSDFW
$OFRKROLFLQWR[LFDWLRQ
105
7UDXPD
7\SHVRIYLHZV
/DWHUDO ULJKWRUOHIWDFFRUGLQJWRVLWHRILQMXU\
$QWHURSRVWHULRU
+DOID[LDO7RZQH
VYLHZ
&DXVHVRIVNXOOUDGLROXFHQFLHV
1RUPDO
6TXDPRXVWHPSRUDOERQH
3DFFKLRQLDQJUDQXODWLRQV
$LU
6XSHUILFLDO DIWHUVFDOSLQMXU\
,QWUDFUDQLDO DIWHURSHQIUDFWXUH
2XWHUVNXOOWDEOH
5RGHQWXOFHU
,QQHUVNXOOWDEOH
6ORZJURZLQJWXPRXUV
&KURQLFVXEGXUDOKDHPDWRPD
'LIIXVHOHVLRQV
0HWDVWDVHV
0XOWLSOHP\HORPD
3DJHW
VGLVHDVH
+\SHUSDUDWK\URLGLVP
&DXVHVRIVNXOOYDXOWGHQVLWLHV
*HQHUDOLVHG
5HQDORVWHRG\VWURSK\
)LEURXVG\VSODVLD
$FURPHJDO\
'UXJV HJ3KHQ\WRLQ
0XOWLIRFDO
6FOHURWLFPHWDVWDVHV
3DJHW
VGLVHDVH
/RFDOLVHG
)RUHLJQERG\
+\SHURVWRVLVIURQWDOLVLQWHUQD
2VWHRPD
0HQLQJLRPD
&KDUDFWHULVWLFVRIIUDFWXUHVVXWXUHVDQGYDVFXODUPDUNLQJV
)UDFWXUHV
6WUDLJKWWUDQVOXFHQWOLQHV
0RUHVUDGLROXFHQW IDFWXUHVDIIHFWERWKWDEOHV
0RVWDUHVWUDLJKWEXWFDQFKDQJHGLUHFWLRQVXGGHQO\
6KDUSO\GHPDUFDWHG
3DUDOOHOPDUJLQV QRWDSHULQJ
0D\UXQDFURVVVXWXUHV
6XWXUHV
:LQGLQJVHUSLJLQRXVOLQHV
)LQH VFOHURWLFRUFRUWLFDWHGPDUJLQV
7\SLFDODQDWRPLFDOVLWHV
6\PPHWULFDO
9DVFXODUPDUNLQJV
/HVVWUDQVOXFHQW DIIHFWLQQHUWDEOHRQO\
106
7UDXPD
1RWVKDUSO\GHPDUFDWHG
0HQLQJHDOJURRYHVWDSHUDVWKH\UXQSHULSKHUDOO\
%UDQFKLQJSDWWHUQDQGV\PPHWULFDO
'LSORHWLFYHQRXVFKDQQHOVDUHZLGH
0DQDJHPHQWRIKHDGLQMXULHV
3DWLHQWVVKRXOGEHPDQDJHGDFFRUGLQJWR$7/6SURWRFROVWRSUHYHQWVHFRQGDU\EUDLQLQMXU\
SDWLHQWVZLWKVHYHUHKHDGLQMXU\KDYHFHUYLFDOVSLQHLQMXU\
)XOODVVHVVPHQWUHTXLUHV
*ODVJRZ&RPD6FDOH
3XOVHEORRGSUHVVXUH
$VVHVVPHQWRISXSLOGLDPHWHUDQGUHVSRQVH
$VVHVVPHQWRIOLPEPRYHPHQW
3DWLHQWVZLWK*&6OHVVWKDQUHTXLUHHDUO\LQWXEDWLRQ
&ULWHULDIRUDGPLVVLRQDIWHUKHDGLQMXU\
$OWHUHGOHYHORIFRQVFLRXVQHVV
6NXOOIUDFWXUH
1HXURORJLFDOV\PSWRPVRUVLJQV
'LIILFXOWDVVHVVPHQW 'UXJVRUDOFRKRO
1RUHVSRQVLEOHFDUHU
6LJQVRIEDVDOVNXOOIUDFWXUH
%ORRGRUFHUHEURVSLQDOIOXLGIURPQRVHRUHDU
3HULRUELWDOKDHPDWRPD
0DVWRLG+DHPDWRPD%DWWOHV6LJQ
+DHPRW\PSDQXP
5DGLRORJLFDOHYLGHQFHRILQWUDFUDQLDODLU
5DGLRORJLFDOHYLGHQFHRIIOXLGOHYHOVLQVLQXVHV
,QGLFDWLRQVIRUKHDG&7VFDQQLQJ
&RQIXVLRQ*&6SHUVLVWLQJDIWHULQLWLDODVVHVVPHQWDQGUHVXVFLWDWLRQ

6NXOOIUDFWXUHZLWKQHXURORJLFDOVLJQV
6NXOOIUDFWXUHDQGHSLOHSWLFILW
,QGLFDWLRQVIRUWUDQVIHUZLWKRXWSUHOLPLQDU\KHDG&7VFDQ
'HWHULRUDWLRQLQOHYHORIFRQVFLRXVQHVV
3URJUHVVLYHQHXURORJLFDOGHILFLW
7HQVHIRQWDQHOOHLQFKLOG
3HQHWUDWLQJLQMXU\
'HSUHVVHGVNXOOIUDFWXUH
$QWLELRWLFVDQGDQWLFRQYXOVDQWV
$QWLELRWLFVDQGDQWLFRQYXOVDQWVDUHRI QREHQHILWLQXQFRPSOLFDWHGKHDGLQMXULHV
%RWKPD\EHXVHLQFRPSRXQGGHSUHVVHGIUDFWXUHVDQGSHQHWUDWLQJEUDLQLQMXU\
107
7UDXPD
&RPSOLFDWLRQVRIKHDGLQMXULHV
([WUDGXUDOKDHPDWRPD
&RPSOLFDWLRQRIORZYHORFLW\LQMXULHV
&ODVVLFSUHVHQWDWLRQ
7UDQVLHQWORVVRIFRQVFLRXVQHVVZLWKUDSLGUHFRYHU\
/XFLGLQWHUYDO
5DSLGGHWHULRUDWLRQLQOHYHORIFRQVFLRXVQHVV
,QFUHDVHGEORRGSUHVVXUH)DOOLQJSXOVHUDWH
&RQWUDODWHUDOOLPEZHDNQHVV
,SVLODWHUDOSXSLOODU\GLODWDWLRQ
7UHDWPHQWLVE\HPHUJHQF\EXUU KROHV
)LJXUH 3RVLWLRQRIHPHUJHQF\EXUUKROHV
6XEGXUDOKDHPDWRPD
&RPSOLFDWLRQRIKLJKYHORFLW\LQMXU\
3DWLHQWXVXDOO\XQFRQVFLRXVIURPWKHWLPHRILQMXU\
'HWHULRUDWLQJOHYHORIFRQVFLRXVQHVV
7UHDWPHQWLVE\GHFRPSUHVVLYHFUDQLRWRP\
%LEOLRJUDSK\
&KDQGOHU&/&XPPLQV%,QLWLDODVVHVVPHQWDQGPDQDJHPHQWRIWKHVHYHUHO\KHDG LQMXUHGSDWLHQW %U

-+RVS0HG
&XPPLQV%+3DUW7KHPDQDJHPHQWRIKHDGLQMXULHV&XUUHQW2UWKRSDHGLFV
&XPPLQV%+3DUWWKHPDQDJHPHQWRIKHDGLQMXULHV &XUUHQW2UWKRSDHGLFV
'XQQ/7)R\30$QWLFRQYXOVDQWVDQGDQWLELRWLFSURSK\OD[LVLQKHDGLQMXU\ $QQ5&ROO6XUJ(QJ

108
7UDXPD
)ODQQHU\7%X[WRQ10RGHUQPDQDJHPHQWRIKHDGLQMXULHV -5&ROO6XUJ(G
*HQWOHPDQ' *XLGHOLQHVIRUWKHUHVXVFLWDWLRQDQGWUDQVIHURISDWLHQWVZLWKVHULRXVKHDGLQMXU\ %0HG-

1LFKROVRQ'$'ULVFROO3$+RGJNLQVRQ':)RUEHV:6W&7KHVNXOO %U0HG-

6FKLHUKRXW*5REHUWV,$QWLHSLOHSWLFGUXJVIRUSUHYHQWLQJVHL]XUHVIROORZLQJDFXWHWUDXPDWLFEUDLQLQMXU\
&RFKUDQH5HYLHZ,Q&RFKUDQH/LEUDU\,VVXH2[IRUG
109
7UDXPD
%UDLQ6WHP'HDWK
3UHFRQGLWLRQV
'LDJQRVLVFRPSDWLEOHZLWKEUDLQVWHPGHDWK
3UHVHQFHRILUUHYHUVLEOHVWUXFWXUDOEUDLQGDPDJH
3UHVHQFHRIDSQRHLFFRPD
([FOXVLRQV
7KHUDSHXWLFGUXJHIIHFWVVHGDWLYHVK\SQRWLFVPXVFOHUHOD[DQWV
+\SRWKHUPLD7HPS!q&
0HWDEROLFDEQRUPDOLWLHV
(QGRFULQHDEQRUPDOLWLHV
,QWR[LFDWLRQ
&OLQLFDOWHVWV
&RQILUPDWLRQRIDEVHQWEUDLQVWHPUHIOH[HV
&RQILUPDWLRQRISHUVLVWHQWDSQRHD
&OLQLFDOWHVWVVKRXOGEHSHUIRUPHGE\H[SHULHQFHGSUDFWLWLRQHUV
$WOHDVWRQHVKRXOGEHDFRQVXOWDQW
1HLWKHUVKRXOGEHSDUWRIWKHWUDQVSODQWWHDP
6KRXOGEHSHUIRUPHGRQVHSDUDWHRFFDVLRQV
1RSUHVFULEHGWLPHLQWHUYDO
&OLQLFDOWHVWVIRUDEVHQWEUDLQVWHPUHIOH[HV
1RSXSLOODU\UHVSRQVHWROLJKW
$EVHQWFRUQHDOUHIOH[
1RPRWRUUHVSRQVHZLWKLQFUDQLDOQHUYHGLVWULEXWLRQ
$EVHQWJDJUHIOH[
$EVHQWFRXJKUHIOH[
$EVHQWYHVWLEXORRFXODUUHIOH[
7HVWIRUFRQILUPDWLRQRISHUVLVWHQWDSQRHD
3UHR[\JHQDWLRQZLWKR[\JHQIRUPLQXWHV
$OORZ3D&2 WRULVHDERYHN3DEHIRUHWHVW
'LVFRQQHFWIURPYHQWLODWRU
0DLQWDLQDGHTXDWHR[\JHQDWLRQGXULQJWHVW
$OORZ3D&2 WRFOLPEDERYHN3D
&RQILUPQRVSRQWDQHRXVUHVSLUDWLRQ
5HFRQQHFWYHQWLODWRU
%LEOLRJUDSK\
:LMGLFNV()07KHGLDJQRVLVRIEUDLQGHDWK1(QJ-0HG
110
7UDXPD
6SLQDOLQMXULHV
$OOSDWLHQWVZLWKPXOWLSOHWUDXPDVKRXOGEHVXVSHFWHGRIKDYLQJDVSLQDOLQMXU\
)DLOXUHWRGHWHFWXVXDOO\UHVXOWVIURPIDLOXUHWRVXVSHFW
&HUYLFDOVSLQHDQGWKRUDFROXPEDUMXQFWLRQDUHWKHFRPPRQHVWVLWHRILQMXU\
7KHSHUFHQWDJHRIQHUYHLQMXULHVVHHQLQSDWLHQWVZLWKVSLQDOIUDFWXUHVDUH
&HUYLFDOVSLQH

7KRUDFLFVSLQH

7KRUDFROXPEDUMXQFWLRQ

/XPEDUVSLQH

$OOLQMXULHVVKRXOGEHDVVXPHGWREHXQVWDEOHXQWLOSURYHQRWKHUZLVH
0DQDJHPHQW
$WVFHQHRIDFFLGHQW
0DLQWDLQLQOLPHVSLQDOLPPRELOLVDWLRQ
5HTXLUHVVXSSRUWLQJRIQHFNZLWKVWLIIFROODUDQGVDQGEDJV
3DWLHQWVKRXOGEHWUDQVSRUWHGRQVSLQDOERDUG
3ULPDU\VXUYH\
,QWXEDWLRQUHTXLUHGPDLQWHQDQFHRILQOLQHLPPRELOLVDWLRQ
3KDU\QJHDOVWLPXODWLRQZLWKDLUZD\FDQFDXVHGYDJDOGLVFKDUJHDQGFDUGLDFDUUHVW
&RQVLGHUSUHPHGLFDWLRQZLWKDWURSLQH
&HUYLFDOVSLQHLQMXULHVUHGXFHV\PSDWKHWLFRXWIORZ
3DWLHQWVPD\EHERWKK\SRWHQVLYHDQGEUDG\FDUGLF
1% 1RWDIHDWXUHRIK\SRYRODHPLDWKHUHIRUHVXVSHFWVSLQDO FRUGLQMXU\
0D\UHTXLUHERWKDWURSLQHDQGLQRWURSLFVXSSRUW
$JJUHVVLYHIOXLGUHVXVFLWDWLRQFDQLQGXFHSXOPRQDU\RHGHPD
6HFRQGDU\VXUYH\
3DWLHQWVPD\GHYHORSUHVSLUDWRU\IDLOXUHGXHWR
,QWHWUDSOHJLFSDWLHQWV
,QWHUFRVWDOSDUDO\VLV
3DUWLDOSKUHQLFQHUYHSDOV\
,PSDLUHGDELOLW\WRFRXJK
9HQWLODWLRQSHUIXVLRQPLVPDWFK
,QSDUDSOHJLFSDWLHQWV
9DULDEOHLQWHUFRVWDOQHUYHSDUDO\VLV
$VVRFLDWHGFKHVWLQMXULHV
0D\GHYHORSDVDODWHIHDWXUHGXHWRDVFHQGLQJRHGHPDLQWKHFHUYLFDOFRUG
$EGRPHQPD\EHIODFFLGZLWKDEVHQWVHQVDWLRQ
)HDWXUHVRISHULWRQLVPPD\EHDEVHQW
3ULDSLVPPD\GHYHORS
3DUWLDOFRUGOHVLRQV
)XQFWLRQSUHVHUYHGGLVWDOWROHYHORUFRUGLQMXU\
0D\EHPLVVHGLIGRQRWILWFODVVLFDOLQMXU\SDWWHUQ
&HQWUDOFRUGOHVLRQ IODFFLGSDUDO\VLVRIXSSHUOLPEV
$QWHULRUFRUGOHVLRQ ORVVRIWHPSHUDWXUHDQGVHQVDWLRQ
3RVWHULRUFRUGOHVLRQ ORVVRIYLEUDWLRQVHQVDWLRQDQGSURSULRFHSWLRQ
%URZQ 6HTXDUGV\QGURPH ORVVRILSVLODWHUDOSRZHUDQGFRQWUDODWHUDOSDLQDQGWHPSHUDWXUH
111
7UDXPD
7DEOH $VVHVVLQJOHYHORILQMXU\
0XVFOHJURXS
'LDSKUDJP
6KRXOGHUDEGXFWRUV
(OERZIOH[RUV
6XSLQDWRUVSURQDWRUV
:ULVWH[WHQVRUV
:ULVWIOH[RUV
(OERZH[WHQVRUV
)LQJHUH[WHQVRUV
)LQJHUIOH[RUV
,QWULQVLFKDQGPXVFOHV
+LSIOH[RUV
+LSDGGXFWRUV
.QHHH[WHQVRUV
$QNOHGRUVLIOH[RUV
7RHH[WHQVRUV
.QHHIOH[RUV
$QNOHSODQWDUIOH[RUV
7RHIOH[RUV
$QDOVSKLQFWHU
1HUYHVXSSO\
&&&
&
&&
&
&
&
&
&
&
7
//
//
//
//
/
//6
66
66
666
5HIOH[
%LFHSVMHUN
6XSLQDWRUMHUN
7ULFHSVMHUN
.QHHMHUN
$QNOHMHUN
%XOERFDYHUQRVXVUHIOH[
$QDOUHIOH[
5DGLRORJLFDODVVHVVPHQWRIFHUYLFDOVSLQH
SDWLHQWVZLWKVSLQDOFRUGLQMXU\KDYHQRUDGLRORJLFDOHYLGHQFHRIERQ\LQMXU\
/DWHUDOFHUYLFDOVSLQH[UD\VKRXOGEHWDNHQGXULQJSULPDU\VXUYH\
6KRXOGHQVXUHWKDWWKHMXQFWLRQEHWZHHQ&DQG7LVVHHQ
$QWHULRSRVWHULRUDQGRGRQWRLGSHJYLHZVVKRXOGEHWDNHQGXULQJVHFRQGDU\VXUYH\
,IXQDEOHWRVHHWKH&7MXQFWLRQFRQVLGHUD
VZLPPHU
VYLHZ
2QODWHUDOFHUYLFDOVSLQHILOPVQHHGWRDVVHVV
$QWHULRUYHUWHEUDODOLJQPHQW
3RVWHULRUYHUWHEUDODOLJQPHQW
3RVWHULRUIDFHWMRLQWPDUJLQV
$QWHULRUERUGHURIVSLQRXVSURFHVVHV
3RVWHULRUERUGHURIVSLQRXVSURFHVVHV
,QWHJULW\RIYHUWHEUDOERGLHVODPLQDHSHGLFOHVDQGDUFKHV
3UHYHUWHEUDOVSDFH
5HWURSKDU\QJHDOVSDFHVKRXOGEHPP
5HWURWUDFKHDOVSDFHVKRXOGEHPP
,QWHUVSLQRXVJDSV
&ODVVLILFDWLRQRIFHUYLFDOVSLQHIUDFWXUHV
+\SHUIOH[LRQLQMXULHV
$QWHULRUVXEOX[DWLRQ
%LODWHUDOORFNHGIDFHWMRLQWV
7HDUGURSIUDFWXUH
6SLQRXVSURFHVVIUDFWXUHV&OD\VKRYHOOHU
VIUDFWXUH
112
7UDXPD
+\SHUH[WHQVLRQLQMXULHV
)UDFWXUHRIWKHDQWHULRURUSRVWHULRUDUFKRI&
$QWHULRULQIHULRUYHUWHEUDOFKLSIDFWXUH
/DPLQDUIUDFWXUH
$[LDOFRPSUHVVLRQ
%XUVWIDFWXUHV
)UDFWXUHRIWKHSHGLFOHRI&
)OH[LRQURWDWLRQLQMXULHV
8QLODWHUDOIDFHWGLVORFDWLRQ
5DGLRORJLFDOVLJQVRIVSLQDOLQVWDELOLW\
&RPSUHVVLRQRIYHUWHEUDOERG\!
.\SKRWLFDQJOHRI!
)DFHWMRLQWZLGHQLQJ
7HDUGURSIUDFWXUH
%DVHRIRGRQWRLGSHJIUDFWXUH
$WODQWRD[LDOJDS!PP
$WODQWRRFFLSLWDOGLVORFDWLRQ
%LEOLRJUDSK\
113
7UDXPD
&HQWUDOQHUYRXVV\VWHPLQIHFWLRQV
,QWUDFUDQLDODEVFHVV
,QWUDFUDQLDODEVFHVVHVDUHUDUHEXWUHTXLUHSURPSWUHFRJQLWLRQ
'HOD\HGGLDJQRVLVRIWHQUHVXOWVLQGLVDELOLW\RUGHDWK
0RVWDUHEDFWHULDOLQIHFWLRQVWKDWUHDFKWKH&16E\
,QRFXODWLRQIURPSHQHWUDWLQJZRXQG
6SUHDGIURPDGMDFHQWLQIHFWLYHIRFXVHJRWLWLVPHGLDVLQXVLWLV
%ORRGERUQHVSUHDGIURPGLVWDQWIRFXVHJHQGRFDUGLWLFOXQJDEVFHVVGHQWDOFDULHV
,QQRVRXUFHRILQIHFWLRQLVLGHQWLILHG
,Q8QLWHG.LQJGRPRWLWLVPHGLDDQGVLQXVLWLVDUHFRPPRQHVWFDXVHV
3DWKRORJ\
)URPORFDOIRFXVRILQIHFWLRQEDFWHULDSHQHWUDWHVNXOOWKURXJKGLSORHLFYHLQV
/RFDORVWHRP\HOLWLVUHVXOWVLQYHQRXVVLQXVWKURPERVLV
3XVLQH[WUDGXUDOVSDFHFDXVHVDQHPS\HPD
'XUDLVQRUPDOO\DJRRGEDUULHUWRWKHLQWUDFUDQLDOVSUHDGRILQIHFWLRQ
6XEGXUDOHPS\HPDFDXVHVRHGHPDDQGFRUWLFDOYHQRXVWKURPERVLV
%UDLQSHQHWUDWLRQFDXVHVDQHDUO\GLIIXVHFHUHEULWLV
$ORFDOLVHGDEVFHVVGHYHORSVZLWKRHGHPDDQGLQFUHDVHG,&3
7KHDEVFHVV XVXDOO\IRUPVLQVXEFRUWLFDOZKLWHPDWWHUQHDUWRVHSWLFIRFXV
+DHPDWRJHQRXVDEVFHVVHVPD\EHPXOWLSOH
&OLQLFDOSUHVHQWDWLRQ
&DQDIIHFWDQ\DJHRUVH[
6\VWHPLFXSVHWLVRIWHQPLOG
6\PSWRPVRILQFUHDVHG,&3LQFOXGHKHDGDFKHYRPLWLQJ
2IWHQDVVRFLDWHGZLWKSURJUHVVLYHFORXGLQJRIFRQVFLRXVQHVV
$VDEVFHVVGHYHORSVIRFDOQHXURORJLFDOV\PSWRPVDSSHDU
6\PSWRPVRILQFUHDVHG,&3ZLWKIRFDOVLJQVUHTXLUHVXUJHQWQHXURVXUJLFDODVVHVVPHQW
'LIIHUHQWLDOGLDJQRVLVLQFOXGHVPHQLQJLWLVRULQWUDFUDQLDOWXPRXU
,QYHVWLJDWLRQV
&7LVLQYHVWLJDWLRQRIFKRLFH
&HUHEUDODEVFHVVDSSHDUVDVUDGLROXFHQWVSDFHRFFXS\LQJOHVLRQ
5LQJHQKDQFHPHQWRIFDSVXOHRFFXUVLQFRQWUDVWHQKDQFHGVFDQV
2IWHQVXUURXQGHGE\FRQVLGHUDEOHRHGHPD
3RVLWLRQVL]HDQGQXPEHURIDEVFHVVHVPD\VXJJHVWXQGHUO\L QJSDWKRORJ\
/XPEDUSXQFWXUHLVFRQWUDLQGLFDWHG
,QSUHVHQFHRIUDLVHG,&3FDQSUHFLSLWDWHWHQWRULDORUWRQVLOODUKHUQLDWLRQ
0DQDJHPHQW
7KHSULQFLSOHVRIWUHDWPHQWDUH
'UDLQLQWUDFUDQLDOFROOHFWLRQ
$GPLQLVWHUHIIHFWLYHDQWLELRWLFWKHUDS\
(OLPLQDWHSULPDU\VRXUFHRILQIHFWLRQ
6XSUDWHQWRULDODEVFHVVHVFDQEHGUDLQHGYLDDEXUUKROH
3XVVKRXOGEHDVSLUDWHGDQGVHQWIRUFXOWXUH
&OLQLFDOSURJUHVVFDQEHPRQLWRUHGE\VHULDO&7VFDQV
6WHUHRWDFWLFGUDLQDJHPD\EHUHTXLUHGIRUPXOWLSOHRUPXOWLORFXO DWHGDEVFHVVHV
&HUHEHOODUDEVFHVVPD\UHTXLUHDVXERFFLSLWDOFUDQLHFWRP\DQGRSHQGUDLQDJH
114
7UDXPD
6XEGXUDOHPS\HPDVDUHRIWHQGLIIXVHDQGGLIILFXOWWRGUDLQ
0D\UHTXLUHFUDQLHFWRP\DQGRSHQGUDLQDJH
3DUHQWHUDODQWLELRWLFVKRXOGEHDGPLQLVWHUHGIRUDWOHDVWWZRZ HHNV
&KRLFHRIDQWLELRWLFVGHSHQGVRQSULPDU\SDWKRORJ\DQGVHQVLWLYLWLHV
2XWFRPH
3URPSWWUHDWPHQWUHVXOWVLQPRUWDOLW\OHVVWKDQ
'HOD\HGWUHDWPHQWUHVXOWVLQPRUWDOLW\JUHDWHUWKDQ
RIVXUYLYRUVKDYHQHXURORJLFDOVHTXHODH
7KHVHLQFOXGHKHPLSDUHVLVYLVXDOILHOGORVVHVDQGHSLOHSV\
6SLQDODEVFHVV
6SLQDODEVFHVVHVDUHXVXDOO\EDFWHULDO
,QIHFWLRQDULVHVLQDGMDFHQWERQHRUE\KDHPDWRJHQRXVVSUHDG
&RPPRQHVWRUJDQLVPVDUHVWDSK\ORFRFFDODQGVWUHSWRFRFFDOVSHFLHV
3XVLVXVXDOO\FRQILQHGWRH[WUDGXUDOVSDFH
6XEGXUDODQGLQWUDPHGXOODU\LQIHFWLRQVDUHUDUH
&OLQLFDOIHDWXUHV
3DWLHQWLVRIWHQV\VWHPLFDOO\XQZHOO
2IWHQSUHVHQWZLWKVHYHUHWKRUDFLFSDLQDWOHYHORIDEVFHVV
7KHSDLQLVZRUVHRQPRYHPHQWDQGDVVRFLDWHGZLWKPDUNHGVSDVP DQGWHQGHUQHVV
5DGLFXODUVLJQVDUHRIWHQSUHVHQWDWOHYHORIOHVLRQ
&RUGFRPSUHVVLRQUHVXOWVLQORQJWUDFWVLJQV
7KURPERSKOHELWLVFDQFDXVHFRUGYHVVHOWKURPERVLVDQGFRUGLQIDUFWLRQ
3UHFLSLWDWHVFRPSOHWHSDUDO\VLVVHQVRU\DQGVSKLQFWHUORVV
,QYHVWLJDWLRQV
6HUXPZKLWHFHOOFRXQW(65DQG&53DUHLQYDULDEO\UDLVHG
;UD\VDUHRIWHQQRUPDO
0D\VKRZVRIWWLVVXHVZHOOLQJRUYHUWHEUDOFROODSVH
05,LVLQYHVWLJDWLRQVRIFKRLFH
0DQDJHPHQW
+LJKLQGH[RIVXVSLFLRQLVUHTXLUHGWRPDNHWKHGLDJQRVLV
2QFHLGHQWLILHGSURPSWQHXURVXUJLFDODVVHVVPHQWLVUHTXLUHV
,IYHUWHEUDOERG\FROODSVHFRQVLGHUDQWHULRUGHFRPSUHVVLRQDQGVWDELOLVDWLRQ
,IQRYHUWHEUDOFROODSVHODPLQHFWRP\RU&7JXLGHGDVSLUDWLRQPD\EHDSSURSULDWH
%LEOLRJUDSK\
115
7UDXPD
*XQVKRWDQGEODVWZRXQGV
*XQVKRWDQGEODVWZRXQGVDUHLQFUHDVLQJO\VHHQLQFLYLOLDQSUDFWLFH
0LOLWDU\DQGFLYLOLDQZRXQGVKRZHYHUGLIIHULQVHYHUDONH\UHVSHFWV
0LOLWDU\ZRXQGVDUHRIWHQKHDYLO\FRQWDPLQDWHGZLWKGHOD\VLQWUHDWPHQW
7KHVDPHSULQFLSDOVDSSO\WRWKHLUWUHDWPHQW
3K\VLFDOSURSHUWLHV
3HQHWUDWLQJPLVVLOHVLQFOXGHERWKPXQLWLRQIUDJPHQWVDQGEXOOHWV
2IWHQGLYLGHGLQWR
KLJK
DQG
ORZ
YHORFLW\
9HORFLW\SHUVH LVQRWLPSRUWDQW
7KHDPRXQWRINLQHWLFHQHUJ\WUDQVIHUUHGWRWLVVXHVLVWKH\NH\IDFWRU
.LQHWLFHQHUJ\WUDQVIHUGHSHQGVRQ
9HORFLW\
3UHVHQWLQJDUHDRIIUDJPHQW
0HFKDQLFDOSURSHUWLHVRIWLVVXH
)UDJPHQWLQMXULHV
)UDJPHQWVDUHXVXDOO\VPDOODQGQXPHURXV
$UHRIORZYHORFLW\ PVDQGORZHQHUJ\-
7KH\KDYHSRRUWLVVXHSHQHWUDWLRQ
,QMXULHVRIWHQQXPHURXVEXWDUHXVXDOO\OLPLWHGWRIUDJPHQWWUDFN
%XOOHWZRXQGV
+DQGJXQEXOOHWVDUHRIORZYHORFLW\PVDQGORZHQHUJ\ -

5LIOHEXOOHWVDUHKLJKYHORFLW\PVDQGKLJKHQHUJ\N-
3K\VLRORJLFDOHIIHFWVGHSHQGRQGHJUHHRIHQHUJ\WUDQVIHU
+LJKYHORFLW\EXOOHWVFDQUHVXOWLQORZHQHUJ\WUDQVIHUZRXQGV
3DWKRSK\VLRORJ\
7KHHIIHFWVRIEXOOHWVFDQUHVXOWIURPERWKGLUHFWDQGLQGLUHFWHIIHFWV
,QORZHQHUJ\WUDQVIHUZRXQGVLQMXU\UHVXOWVIURPGLUHFWHIIHFWVDORQJEXOOHWWUDFN
,QKLJKHQHUJ\WUDQVIHUZRXQGVLQGLUHFWHIIHFWVDUHPRUHLPSRUWDQW
5DGLDOIRUFHVSHUSHQGLFXODUWRWUDFWUHVXOWLQFDYLWDWLRQ
*HQHUDWHVFRQWXVLRQVDQGODFHUDWLRQVDZD\IURPWUDFW
1HJDWLYHSUHVVXUHZLWKLQFDYLW\FDQVXFNLQHQYLURQPHQWDOFRQWDPLQDQWV
5LIOHEXOOHWVDOVRWXPEOH\DZZLWKLQWKHZRXQG
,QFUHDVHVSUHVHQWLQJDUHDDQGLQFUHDVHVHQHUJ\WUDQVIHU
&DQUHVXOWLQVPDOOHQWU\DQGH[LWZRXQGVEXWODUJHZRXQGFDYLW\
5DGLDOHQHUJ\WUDQVIHUFDQFDXVHLQGLUHFWIUDFWXUHV
%XOOHWDQGERQHIUDJPHQWDWLRQFDQFDXVHVHFRQGDU\WUDFWVDQGIXUWKHUXQSUHGLFWDEOHGDPDJH
7UHDWPHQW
,QPLOLWDU\HQYLURQPHQWWKHVWDQGDUGWUHDWPHQWRIJXQVKRWZRXQGVKDVLQYROYHG
:RXQGGHEULGHPHQW
:RXQGH[FLVLRQ
'UHVVLQJFKDQJHDQGGHOD\HGSULPDU\VXWXUHDWGD\V
6LPLODUZRXQGPDQDJHPHQWSURWRFROVKDYHEHHQDGYRFDWHGE\WKH5HG&URVV
$SSURDFKPD\EHPRGLILHGLQFLYLOLDQHQYLURQPHQW
116
7UDXPD
%LEOLRJUDSK\
&RRSHU*-5\DQ-,QWHUDFWLRQRISHQHWUDWLQJPLVVLOHVZLWKWLVVXHV VRPHFRPPRQPLVDSSUHKHQVLRQV
DQGLPSOLFDWLRQVIRUZRXQGPDQDJHPHQW%U-6XUJ
&RXSODQG507HFKQLFDODVSHFWVRIZDUZRXQGH[FLVLRQ%U-6XUJ
5\DQ-00LOQHU60&RRSHU*-+D\ZRRG,5)LHOGVXUJHU\RQ DIXWXUHFRQYHQWLRQDOEDWWOHILHOG
VWUDWHJ\DQGZRXQGPDQDJHPHQW$QQ5&ROO6XUJ(QJ
6DDGLD56FKHLQ0'HEULGHPHQWRIJXQVKRWZRXQGVVHPDQWLFVDQGVXUJHU\ :RUOG-6XUJ

117
7UDXPD
6NLQORVV IODSVDQGJUDIWV
'HILQLWLRQV
$XWRJUDIW JUDIWIURPRQHSDUWRIERG\WRDQRWKHULQWKHVDPHLQGLYLGXDO
$OORJUDIW JUDIWIURPRQHLQGLYLGXDOWRDQRWKHULQWKHVDPHVSHFLHV
;HQRJUDIW JUDIWIURPRQHVSHFLHVWRDQRWKHU
6NLQJUDIWV
$VNLQJUDIWLVDQDXWRJUDIW
&DQEHSDUWLDORUIXOOWKLFNQHVVGHSHQGLQJRQWKHDPRXQWRIGHUPLVWDNHQ
3DUWLDOWKLFNQHVVVNLQJUDIWV
&RQWDLQVHSLGHUPLVDQGVXSHUILFLDOSDUWRIGHUPLV
8VXDOO\WDNHQIURPGRQRUVLWHZLWKGHUPDWRPHRU+XPE\NQLIH
'RQRUVLWHHSLWKHOLXPJURZVEDFNIURPVZHDWJODQGVDQGKDLUIROOLFOHV
*UDIWFDQEH
PHVKHG
WRLQFUHDVHWKHDUHDWKDWFDQEHFRYHUHG
([FHVVVNLQFDQEHVWRUHGLQIULGJHDQGUHXVHGIRUXSWRZHHNV
3DUWLDOWKLFNQHVVJUDIWVFDQQRWEHXVHGRQLQIHFWHGZRXQGV
1RWVXLWDEOHIRUFRYHULQJERQHWHQGRQ RUFDUWLODJH
&RVPHWLFUHVXOWLVRIWHQQRWJRRG
)XOOWKLFNQHVVVNLQJUDIWV
&RQWDLQVHSLGHUPLVDQGDOORIGHUPLV
&DQRQO\EHXVHGWRFRYHUVPDOOGHIHFWV
*RRGFRVPHWLFUHVXOWVFDQEHREWDLQHG
'RQRUVLWHQHHGVWREHFORVHGZLWKSULPDU\VXWXUHRUSDUWLDOWKLFN QHVVJUDIW
&RPPRQGRQRUVLWHVLQFOXGHWKHSRVWDXULFXODUVNLQDQGVXSUDFODYLFXODUIRVVD
6NLQIODSV
&ODVVLILHGDFFRUGLQJWREORRGVXSSO\
5DQGRPSDWWHUQJUDIWV
5HFHLYHVEORRGVXSSO\IURPVHJPHQWDODQDVWRPRWLFRUD[LDODUWHU\
([DPSOHVLQFOXGHDGYDQFHPHQWDQGURWDWLRQIODSV
)LJXUH $GYDQFHPHQWIODS
118
7UDXPD
)LJXUH 5RWDWLRQIODS
$[LDOSDWWHUQJUDIWV
5HFHLYHVEORRGVXSSO\IURPDGLUHFWFXWDQHRXVDUWHULHV
([DPSOHVLQFOXGH
,OLRIHPRUDOLVODQGIODSVXSSOLHGE\VXSHUILFLDOFLUFXPIOH[LOLDFDUWHU\
/DWHUDOIRUHKHDGIODSVXSSOLHGVXSHUILFLDOWHPSRUDODUWHU\
'HOWRSHFWRUDOLVODQGIODSVXSSOLHGE\SHUIRUDWLQJEUDQFKHVRILQWHUQDOPDPPDU\DUWHU\
6XUYLYDORIDOOIODSVGHSHQGVRQLWUHFHLYLQJDQDGHTXDWHEORRGVXSSO\
'HSHQGRQOHQJWKRIIODSLQUHODWLRQVKLSWRLWVEDVH
%ORRGVXSSO\FDQEHLPSURYHGE\WKHXVHRI
GHOD\LQJ
WHFKQLTXHV
7KHIODSLVSDUWLDOO\UDLVHGDQGUHSODFHGSULRUWRXVH
(QFRXUDJHVWKHIODSWRLQFUHDVHLWVEORRGVXSSO\WKURXJ KWKHSHGLFOH
7XEHSHGLFOHJUDIWV
)UHTXHQWO\UDLVHGIURPDEGRPHQRULQQHUDUP
3DUDOOHOVNLQLQFLVLRQVDOORZWXEHRIVNLQWREHIRUPHG
6NLQGHIHFWLVWKHQFORVHG
7KHOHQJWKRIWKHWXEHVKRXOGQRWEHJUHDWHUWKDQWZLFHWKHEDVH
/RQJD[LVRIWXEHVKRXOGSDUDOOHOWKHGLUHFWLRQRIWKHFXWDQHRXVEORRGYHVVHOV
*RRGPHDQVRIGHOD\LQJWLVVXHWUDQVIHURYHUDORQJGLVWDQFH
3URGXFHVDJRRGFRVPHWLFUHVXOW
0\RFXWDQHRXVIODSV
,QPRVWSDUWVRIWKHERG\WKHVNLQUHFHLYHVLWVEORRGVXSSO\IURPWKH XQGHUO\LQJPXVFOH
0XVFOHIDVFLDDQGRYHUO\LQJVNLQFDQWKHUHIRUHEHPRYHGDVRQHXQLW
7KHVXUYLYHVRQPDMRUEORRGYHVVHOVXSSO\LQJWKHPXVFOH
([DPSOHVLQFOXGH
/DWLVVLPXVGRUVLIODSVXSSOLHGE\WKRUDFRGRUVDODUWHU\
7UDQVYHUVHUHFWXVDEGRPLQLVVXSSOLHGE\VXSHULRUHSLJDVWULFDUWHU\
$OORZWLVVXHWUDQVIHUWRSRRUO\YDVFXODULVHGDUHDV
%RQHFDQDOVREHWUDQVIHUUHGIRURVVHRXVUHFRQVWUXFWLRQ
)ODSVXVXDOO\KDYHQRVHQVDWLRQ
)UHHP\RFXWDQHRXVIODSV
119
7UDXPD
0LFURYDVFXODUWHFKQLTXHVDOORZWKHDQDVWRPRVLVRIDUWHULHVDQGYHLQV
0\RFXWDQHRXVIODSVFDQWKHUHIRUHEHGHWDFKHGIURPEORRGVXSSO\
&DQEHWUDQVIHUUHGWRRWKHUSDUWVRIERG\
([DPSOHVLQFOXGHWKHIUHHWUDQVYHUVHUHFWXVDEGRPLQLVIODS
7LVVXHH[SDQVLRQ
6NLQFDQEHJUDGXDOO\VWUHWFKHGWRDFFRPPRGDWHDJUHDWHUDUHD
,IVNLQORVVLVDQWLFLSDWHGLWLVSRVVLEOHWRH[SDQGDGMDFHQWVNLQSULRUWRRSHUDWLRQ
7LVVXHH[SDQGHUVFDQEHSODFHGVXEFXWDQHRXVO\LQFROODSVHGVWDWH
2YHUVHYHUDOZHHNVFDQEHLQIODWHGZLWKVDOLQHWKURXJKDVXEFXWDQHRXVSRUW
([SDQGHGVNLQFDQEHXVHGWRFRYHUGHIHFWDQGWLVVXHH[SDQGHUUHPRYHG
%LEOLRJUDSK\
120
7UDXPD
%XUQV
,QLWLDODVVHVVPHQWVKRXOGEHE\$7/6SULQFLSOHV
$LUZD\
/RRNIRUVLJQVRILQKDODWLRQLQMXU\
)DFLDOEXUQVVRRWLQQRVWULOVRUVSXWXP
%UHDWKLQJ
%HDZDUHRIFDUERQPRQR[LGHSRLVRQLQJ
3DWLHQWPD\DSSHDU
SLQN
ZLWKDQRUPDOSXOVHR[LPHWHUUHDGLQJ
&LUFXODWLRQ
7KHIOXLGORVVIURPDEXUQLVVLJQLILFDQW
,WFDQUHVXOWLQK\SRYRODHPLFVKRFNDQGDFXWHUHQDOIDLOXUH
$VVHVVPHQWRIH[WHQW
1HHGWRDVVHVVSHUFHQWDJHERG\VXUIDFHDUHD%6$LQYROYHG

(VWLPDWHGIURP
/XQG %URZGHUFKDUW
:DOODFH
UXOHRIQLQHV
+HDG

(DFKXSSHUOLPE

(DFKORZHUOLPE

)URQWRIWUXQN

%DFNRIWUXQN

3HULQHXP

6XUIDFHDUHDFRYHUHGE\SDWLHQWVKDQGZLWKILQJHUVFORVHG
)LJXUH :DOODFH
VUXOHRIQLQHV
121
7UDXPD
)OXLGUHSODFHPHQW
7RDVVHVVIOXLGUHSODFHPHQWQHHGWRNQRZ
7LPHRILQMXU\
3DWLHQWVZHLJKW
3HUFHQW%6$LQYROYHG
,QWUDYHQRXVIOXLGUHSODFHPHQWQHHGHGIRU !%6$LQDFKLOGDQG%6$LQDGXOW
0DQ\IRUPXODVGHYLVHGWRHVWLPDWHIOXLGUHTXLUHPHQW
0XLUDQG%DUFOD\IRUPXOD
:HLJKW .J u %6$
SHUSHULRG
3URYLGHVYROXPHLQPORIFROORLGWREHJLYHQLQILUVWKRXUV

7KLVYROXPHFDQEHUHSHDWHG
(YHU\KRXUVIRUWKHILUVWKRXUV
(YHU\KRXUVEHWZHHQDQGKRXUV
2QFHEHWZHHQDQGKRXUV
$7/6IRUPXOD
:HLJKW .J u %6$ u WR
*LYHVWRWDOYROXPHLQPOWREHLQIXVHGLQILUVWKRXUV

0HWDEROLFZDWHU
0HWDEROLFZDWHUVKRXOGEHJLYHQLQDGGLWLRQWRUHVXVFLWDWLRQIOXLG
,QDGXOW /GH[WURVH
,QFKLOG P.JIRUILUVWNJPO.JIRUHDFKVXEVHTXHQW.J
$VVHVVPHQWRIUHVXVFLWDWLRQ
3DWLHQWVKRXOGEHPRQLWRUHGWRDVVHVVDGHTXDF\RIUHVXVFLWDWLRQ
&OLQLFDODVVHVVPHQW
9LWDOVLJQV SXOVH%3
8ULQHRXWSXW!POKRXULQDGXOW
+DHPDWRFULWDLPIRU
&ULWHULDIRUUHIHUUDOWREXUQVXQLW

!%6$LQFKLOG
!%6$LQDGXOW
,QKDODWLRQLQMXULHV
%XUQVLQYROYLQJWKHDLUZD\
(OHFWULFDOEXUQV
&KHPLFDO EXUQV
6SHFLDOVDUHDV H\HVIDFHKDQGSHULQHXP
%LEOLRJUDSK\
&ODUNH-%XUQV%ULW0HG%XOO
122
7UDXPD
)DFLDODQGRUELWDOLQMXULHV
8VXDOO\VHHQIROORZLQJVSRUWLQJDFFLGHQWVLQWHUSHUVRQDOYLROHQFHDQG57$V
0D\EH DVVRFLDWHGZLWKPXOWLV\VWHPWUDXPD
$VVHVVPHQW
$VVHVVPHQWVKRXOGIROORZ$7/6SULQFLSDOV
3ULPDU\VXUYH\
$LUZD\FRPSURPLVHIURPDIUDFWXUHRUKDHPRUUKDJHVKRXOGEHLGHQWLILHG
%LODWHUDODQWHULRUPDQGLEXODUIUDFWXUHVPD\DOORZWRQJXHWRIDOOEDFN
2URWUDFKHDOLQWXEDWLRQPD\EHUHTXLUHG
+DHPRUUKDJHVKRXOGEHUHGXFHGZLWKPRXWKSURSVDQGHSLVWD[LVEDOORRQV
$QWHULRUDQGSRVWHULRUQDVDOSDFNLQJPD\EHUHTXLUHG
6HFRQGDU\VXUYH\
3DOSDWHRIRUELWDOULPV]\JRPDWLFDUFKHVDQGPDQGLEOHWRLGHQWLI\IUDFWXUHV
([DPLQHH\HV FDUHIXOO\
5HGXFHGH\HPRYHPHQWPD\VXJJHVWRUELWDOIUDFWXUH
6XEFRQMXQFWLYDOKDHPRUUKDJHPD\VXJJHVWVNXOOIUDFWXUH
3URSWRVLVDQGRSKWKDOPRSOHJLDPD\VXJJHVWUHWUREXOEDUKDHPRUUKDJH
$VVHVVVHQVDWLRQLQPD[LOODU\EUDQFKRIWULJHPLQDOQHUYH
,QWHUFDQWKDOGLVWDQFHVKRXOGEH PP
,QWHUFDQWKDOGLVWDQFHJUHDWHUWKDQPPVXJJHVWVDQDVRHWKPRLGIUDFWXUH
,QWHUSXSLOODU\GLVWDQFHVKRXOGEHPP
,QWUDRUDOH[DPLQDWLRQLVHVVHQWLDO
$OORZVDVVHVVPHQWRIRFFOXVLRQDQGLQWUDRUDOKDHPDWRPDV
5DGLRORJ\
0D\EHGLIILFXOWWRREWDLQILOPVLQWKHDFXWHVHWWLQJ
8VHIXOUDGLRJUDSKVLQFOXGH
2FFLSLWRPHQWDOYLHZVq DQGqIRURUELWDODQG]\JRPDWLFIUDFWXUHV
3RVWHURDQWHULRUYLHZVRIIDFLDOERQHV
6XEPHQWRYHUWH[YLHZIRU]\JRPDWLFDUFKIUDFWXUHV
2UWKRSDQWRPRJUDP23*IRUPDQGLEXODUIUDFWXUHV
5HYHUVH7RZQHVYLHZIRUFRQG\OHQHFNIUDFWXUHV
2FFOXVDOILOPVIRUGHQWRDOYHRODUIUDFWXUHV
&7VFDQQLQJDOORZVFRPSOHWHDVVHVVPHQWRIIUDFWXUHV
'UHFRQVWUXFWLRQLVXVHIXO
$OORZVSURGXFWLRQRIDVWHUHROLWKRJUDSKDQGDUHVLQPRGHOIURPWKHGLJLWDOLPDJH
&ODVVLILFDWLRQ
)UDFWXUHVXVXDOO\FODVVLILHGDV
8SSHUWKLUG IURQWDOERQHV
0LGGOHWKLUG ]\JRPDQDVDOERQHVDQGPD[LOOD
/RZHUWKLUG PDQGLEOHDQGWHHWK
/H)RUWIUDFWXUHV
)UDFWXUHVRIPLGSRUWLRQRIIDFHKDYHEHHQFODVVLILHGDV
/H)RUW )UDFWXUHGHWDFKLQJSDODWHDQGPD[LOODU\DOYHROXV
/H)RUW 3\UDPLGDOIUDFWXUHWKURXJKVLQXVZDOOODWHUDOO\DQGQDVDOERQHVPHGLDOO\
123
7UDXPD
/H)RUW )UDFWXUHWKURXJKIURQWR]\JRPDWLFVXWXUHVDQGRUELWVGHWDFKLQJIDFLDOVNHOHWRQIURP
EDVHRIVNXOO
3ULQFLSDOVRIWUHDWPHQW
3ULPDU\UHSDLUSURGXFHVWKHEHVWFRVPHWLFUHVXOWV
0D\EHGHOD\HGIRURUGD\VLIPXOWLGLVFLSOLQDU\DSSURDFKUHTXLUHG
2SHQUHGXFWLRQDQGLQWHUQDOIL[DWLRQLVWUHDWPHQWRIFKRLFHDOORZLQJ
$QDWRPLFDOUHGXFWLRQRIIUDFWXUHV
6WDEOHLQWHUQDOIL[DWLRQ
(DUO\MDZPRELOLVDWLRQ
124
7UDXPD
3ULQFLSOHVRIOLPELQMXU\
/LIHWKUHDWHQLQJOLPELQMXULHV
7UDXPDWLFDPSXWDWLRQ
0DMRUYDVFXODULQMXU\
3HOYLFIUDFWXUHGLVUXSWLRQ
+DHPRUUKDJHIURPRSHQIUDFWXUH
0XOWLSOHORQJERQHIUDFWXUHV
6HYHUHFUXVKLQMXU\
/LPEWKUHDWHQLQJLQMXULHV

9DVFXODULQMXU\
0DMRUMRLQWGLVORFDWLRQ
&UXVKLQMXU\
2SHQIUDFWXUH
&RPSDUWPHQWV\QGURPH
1HUYHLQMXU\
7DEOH (VWLPDWHGEORRGORVVFDXVHGE\IUDFWXUHV
6LWHRIIUDFWXUH
+XPHUXV
7LELD
)HPXU
3HOYLV
%ORRGORVVOLWUHV

125
7UDXPD
7KHGHHSIDVFLDHQYHORSVWKHOLPEV
2WKHUIDVFLDOSODQHVGLYLGHWKHOLPEVLQWRFRPSDUWPHQWV
7KHORZHUOLPEWKHUHIRUHKDVIRXUIDVFLDOFRPSDUWPHQWV
)LJXUH /RZHUOLPEPXVFXODUFRPSDUWPHQWV
7KHQRUPDOORZHUOLPEYHQRXVSUHVVXUHLVDIHZPP+J
,QWUDFRPSDUWPHQWDOSUHVVXUHVDUHLQWKHUDQJH PP+J
&RPSDUWPHQWDOSUHVVXUHGRHVQRWQRUPDOO\LQWHUIHUHZLWKEORRGIORZ
&RPSDUWPHQWV\QGURPHVXVXDOO\IROORZIUDFWXUHVRUUHSHUIXVLRQLQMXULHV
7KH\DUHPRUHFRPPRQIROORZLQJFORVHGLQMXULHV
6ZHOOLQJZLWKLQDIDFLDOFRPSDUWPHQWUHVXOWVLQLQFUHDVHGLQWUDFRPSDUWPHQWDOSUHVVXUH
,QLWLDOYHQRXVFRPSURPLVHPD\SURJUHVVWRUHGXFHGFDSLOODU\IORZ
7KLVH[DFHUEDWHVWKHLVFKDHPLFLQVXOWDQGIXUWKHULQFUHDVHVSUHVVXUH
$UWHULDOLQIORZLVUDUHO\UHGXFHGXQOHVVWKHSUHV VXUHH[FHHGV\VWROLF%3
,ISUHVVXUHPRQLWRULQJDYDLODEOHSUHVVXUHV!PP+JDUHDEQRUPDO
&OLQLFDOIHDWXUHV
&RPSDUWPHQWV\QGURPHVDUHQRUPDOO\VHHQZLWKLQKRXUVRILQMXU\
&OLQLFDOIHDWXUHVLQFOXGH
,QFUHDVLQJSDLQGHVSLWHLPPRELOLVDWLRQRIIUDFWXUH
$OWHUHGVHQVDWLRQLQWKHGLVWULEXWLRQRIQHUYHVSDVVLQJWKURXJKWKHFRPSDUWPHQW
0XVFOHVZHOOLQJDQGWHQGHUQHVV
3DLQRQSDVVLYHPRYHPHQW
3HULSKHUDOSXOVHVPD\VWLOOEHSUHVHQW
7UHDWPHQW
5HPRYHFRQVWULFWLQJFDVWVVSOLQWVHWF
,IQRLPSURYHPHQWSURPSWIDVFLWRWRPLHVDUHUHTXLUHG
1HHGWRGLYLGHVNLQDQGGHHSIDVFLDIRUWKHZKROHOHQJWKRIWKHFRPSDUWPHQW
:RXQGVVKRXOGEHOHIWRSHQ
0D\UHTXLUHGHOD\HGFORVXUHRUVNLQJUDIWLQJ
126
7UDXPD
2XWFRPH
7LPHO\VXUJHU\SURGXFHVDJRRGIXQFWLRQDORXWFRPH
'HOD\UHVXOWVLQPXVFOHLVFKDHPLDDQGQHFURVLV
0XVFOHILEURVLVSURGXFHVWKHW\SLFDO9RONPDQQ
VLVFKDHPLFFRQWUDFWXUH
%LEOLRJUDSK\
0F4XHHQ00&KULVWLH-&RXUW%URZQ&0$FXWHFRPSDUWPHQWV\QGURPHLQWLELDOGLDSK\VHDO
IUDFWXUHV-%RQH-RLQW6XUJ>%U@
0F4XHHQ00&RXUW%URZQ&0&RPSDUWPHQWPRQLWRULQJLQWLELDOIUDFWXUHV7KHSUHVVXUHWKUHVKROG
IRUGHFRPSUHVVLRQ-%RQH-RLQW6XUJ>%U@
YDQ(VVHQ*-0F4XHHQ00&RPSDUWPHQWV\QGURPHLQWKHORZHUOLPE +RVS0HG

127
7UDXPD
7RHYDOXDWHWUDXPDPDQDJHPHQWDQGRXWFRPHRQHQHHGVWRDVVHVV
,QSXW
$QDWRPLFDOVFRULQJV\VWHPV
$EEUHYLDWHGLQMXU\VFRUH
,QMXU\VHYHULW\VFRUH
3K\VLRORJLFDOVFRULQJV\VWHPV
*ODVJRZFRPDVFDOH
7UDXPDVFRUH
5HYLVHGWUDXPDVFRUH
75,66PHWKRGRORJ\
7UHDWPHQW
,QGLYLGXDOSDWLHQW
6\VWHPRISDWLHQWFDUH
2XWFRPH
0RUELGLW\
0RUWDOLW\
,QMXU\VHYHULW\VFRUH
8VHGWRDVVHVVSDWLHQWVLQYROYHGLQWUDIILFDFFLGHQWV
0DNHVXVHRIWKH$EEUHYLDWHG,QMXU\6FDOH$,6
,WVYDOXHFRUUHODWHVZLWKWKHULVNRIPRUWDOLW\
3DWLHQWVZLWKLPPHGLDWHO\RUUDSLGO\IDWDOLQMXULHVDUHH[FOXGHG
,QMXULHVDUHDVVLJQHGWRERG\UHJLRQV
*HQHUDOKHDG QHFNFKHVWDEGRPLQDOH[WUHPLWLHV SHOYLV
(DFKW\SHRILQMXU\HQFRXQWHUHGLVDVVLJQHGDYDOXHIURPWRZLWK

PLQRULQMXU\
PRGHUDWHLQMXU\
VHYHUHEXWQRWOLIHWKUHDWHQLQJLQMXU\
OLIHWKUHDWHQLQJEXWVXUYLYDOOLNHO\
FULWLFDOZLWKXQFHUWDLQVXUYLYDO
7DEOH ([DPSOHVRI$,6VFRUHV
6\VWHP
*HQHUDO
*HQHUDO
&KHVW
&KHVW
$EGRPHQ
6HYHULW\

([DPSOH
VW
GHJUHHEXUQV
UG
GHJUHHEXUQV
+DHPRWKRUD[
3HULFDUGLDOLQMXU\
5XSWXUHGOLYHU
+LJKHVWVFRUHLQGLFDWLQJWKHPRVWVHYHUHLQMXU\ IRUHDFKUHJLRQLVVHOHFWHG
5DQNHGIURPWKHKLJKHVWWRORZHVWYDOXH
7KUHHKLJKHVWYDOXHVDUHWKHQXVHGWRFDOFXODWHWKHLQMXU\VHYHULW\VFRUH
,QMXU\VHYHULW\VFRUH

KLJKHVWUHJLRQVFRUH

VHFRQGKLJKHVWUHJLRQVFRUH
128
7UDXPD
WKLUGKLJKHVWUHJLRQVFRUH
0LQLPXPVFRUH
0D[LPXPVFRUH
0RUWDOLW\UDWHLQFUHDVHVZLWKVFRUHDQGDJH
7DEOH 0RUDOLW\DFFRUGLQJWR,66DQGDJH

6FRUH

PRUWDOLW\ PRUWDOLW\ PRUWDOLW\!

5HYLVHGWUDXPDVFRUH
8VHGWRUDSLGO\DVVHVVSDWLHQWVDWWKHVFHQHRIDQDFFLGHQW
7DEOH 5HYLVHGWUDXPDVFRUH
3DUDPHWHU
5HVSLUDWRU\UDWH
6\VWROLFEORRGSUHVVXUH
*ODVJRZ&RPD6FRUH
)LQGLQJ
SHUPLQXWH
!SHUPLQXWH
SHUPLQXWH
SHUPLQXWH

!PP+J
PP+J
PP+J
PP+J

3RLQWV

5HYLVHGWUDXPDVFRUH
SRLQWVIRUUHVSLUDWRU\UDWH
SRLQWVIRUV\VWROLFEORRGSUHVVXUH
SRLQWVIRU*ODVJRZFRPDVFRUH
0D[LPXPVFRUHLQGLFDWLQJOHDVWDIIHFWHG

0LQLPXPVFRUHLQGLFDWLQJPRVWDIIHFWHG
129
7UDXPD
75,66PHWKRGRORJ\
7UDXPDDQG,QMXU\6HYHULW\6FRUH75,66ZDVGHVLJQHGWRHYDOXDWHWUDXPDFDUH

&DOFXODWHVH[SHFWHGVXUYLYDOEDVHGRQSDWLHQWFKDUDFWHULVWLFV
,QWHQGHGWREHXVHGWRFRPSDUHRXWFRPHVIURPGLIIHUHQWWUHDWP HQWFHQWHUV
&RPSRQHQWV
:HLJKWHG5HYLVHG7UDXPD6FRUH576
,QMXU\6HYHULW\6FRUH,66
6FRUHIRUSDWLHQW
VDJH
&RHIILFLHQWVEDVHGRQEOXQWYHUVXVSHQHWUDWLQJWUDXPD
/LPLWDWLRQV
6RPHUHVHDUFKHUVKDYHIRXQGSUREOHPVZLWKWKHDFFXUDF\RI WKH75,66PHWKRG
0D\EHQHFHVVDU\WRGHYHORSGLIIHUHQWFRHIILFLHQWVIRUGLIIHUHQWSRSXODWLRQVRISDWLHQWV
%LEOLRJUDSK\
%R\G&57ROVRQ0$&RSHV:6(YDOXDWLQJWUDXPDFDUH7KH75,66PHWKRG -7UDXPD

&KDPSLRQ+56DFFR:-$UHYLVLRQRIWKHWUDXPDVFRUH-7UDXPD
130
,QWHQVLYHFDUH
,QWHQVLYHFDUH
3ULQFLSOHRI,&8
,QGLFDWLRQVIRUDGPLVVLRQWR,78
0HFKDQLFDOVXSSRUWRIRUJDQIXQFWLRQ
5HVSLUDWRU\VXSSRUW YHQWLODWLRQ&3$3
5HQDOVXSSRUW KDHPRILOWUDWLRQKDHPRGLDO\VLV
&DUGLDF (&*DQGLQRWURSLFGUXJV
+HSDWLF EORRGWUDQVIXVLRQ
1HXURORJLFDO LQWUDFUDQLDOSUHVVXUHPRQLWRULQJ
8VXDOO\KDVQXUVLQJFDUH
,QGLFDWLRQVIRUDGPLVVLRQWR+'8
&ORVHPRQLWRULQJRIXQVWDEOHSDWLHQW
2[\JHQDWLRQ UHVSLUDWRU\UDWHR[\JHQVDWXUDWLRQDQGDUWHULDOJDVHV
&DUGLDFIXQFWLRQ SXOVHEORRGSUHVVXUHFHQWUDOYHQRXVSUHVVXUH
5HQDOIXQFWLRQ XULQHRXWSXW
8VXDOO\KDVDWOHDVWQXUVLQJFDUH
8VXDOO\GRHVQRWKDYHIDFLOLWLHVIRUYHQWLODWLRQRUKDHPRGLDO\VLV
)DFWRUVWREHFRQVLGHUHGZKHQDVVHVVLQJDGPLVVLRQWR,&8
'LDJQRVLV
6HYHULW\RILOOQHVV
$JH
&RH[LVWLQJGLVHDVH
3K\VLRORJLFDOUHVHUYH
3URJQRVLV
$YDLODELOLW\RIVXLWDEOHWUHDWPHQW
5HVSRQVHRIWUHDWPHQWWRGDWH
5HFHQWFDUGLRSXOPRQDU\DUUHVW
$QWLFLSDWHGTXDOLW\RIOLIH
7KHSDWLHQW
VZLVKHV
&ULWHULDIRU,&8DVVHVVPHQW
7KUHDWHQHGDLUZD\
5HVSLUDWRU\DUUHVW
5HVSLUDWRU\UDWH!RUEUHDWKVPLQ
2[\JHQVDWXUDWLRQRQ!R[\JHQ
&DUGLDFDUUHVW
3XOVHUDWHRU!EHDWVPLQ
6\VWROLFEORRGSUHVVXUHPP+J
6XGGHQIDOOLQOHYHORIFRQVFLRXVQHVV
5HSHDWHGRUSURORQJHGVHL]XUHV
5LVLQJDUWHULDOFDUERQGLR[LGHWHQVLRQZLWKUHVSLUDWRU\DFLGRVLV
131
,QWHQVLYHFDUH
&DUGLRYDVFXODU
&DUGLRYDVFXODUPRQLWRULQJ
&DUGLDFRXWSXWLVWKH
JROGVWDQGDUG
PHDVXUHRIFDUGLRYDVFXODUIXQFWLRQ
0HDVXUHPHQWQRUPDOO\UHTXLUHVLQYDVLYHSUHVVXUHPRQLWRULQJ
&DUGLRYDVFXODUIXQFWLRQFDQKRZHYHUEHDVVHVVHGQRQLQYDVLYHO\ZLWK
(OHFWURFDUGLRJUDP
%ORRGSUHVVXUH
&HQWUDOYHQRXVSUHVVXUH
8ULQHRXWSXW
(&* DOORZVDVVHVVPHQWRIKHDUWUDWHDQGDQ\DUUK\WKPLD
%3FDQEHPRQLWRUHGZLWKDFXIILQWHUPLWWHQWRUDUWHULDOOLQHFRQWLQXRXV
,QWKHDEVHQFHRIYDVRFRQVWULFWLRQSURYLGHVDJRRGHVWLPDWHRIFDUGLDFRXWSXW
&OLQLFDODVVHVVPHQWRIMXJXODUYHQRXVSUHVVXUHLVXQUHOLDEOH
&HQWUDOYHQRXVV\VWHPFDQEHFDQQXODWHGE\LQWHUQDOMXJXODURUVXEFODYLDQURXWH
&RPSOLFDWLRQVRI&93OLQHVLQFOXGH
3QHXPRWKRUD[
$UWHULDOSXQFWXUH
$LUHPEROLVP
,QIHFWLRQ
6LWHDWZKLFKWUDQVGXFHUVDUH]HURHGDUHYHU\YDULDEOH
$OVRFKDQJHZLWKSDWLHQWPRYHPHQW
&KDQJHVLQSUHVVXUHUDWKHUWKDQDEVROXWHYDOXHVDUHLPSRUWDQW
$IOXLGEROXV PORIFROORLGJLYHQDVTXLFNO\DVSRVVLEOH
$ORZ&93ZLWKWUDQVLHQWLQFUHDVHZLWKIOXLGEROXV K\SRYRODHPLD
$KLJK&93ZLWKSHUVLVWHQWLQFUHDVHZLWKIOXLGEROXV K\SHUYRODHPLD
&93PHDVXUHPHQWDOORZVDVVHVVPHQWRIWKHFDUGLDFSUHORDG
&DUGLDFRXWSXW DQGOHIWVLGHGSUHVVXUHV
,IERWKYHQWULFOHDUHIXQFWLRQLQJQRUPDOO\SUHORDGZLOODOORZDVVHVVPHQWRIFDUGLDFRXWSXW
,VFKDHPLFKHDUWGLVHDVHRUVHSVLV/9IXQFWLRQFDQEHUHGXFHG
3XOPRQDU\K\SHUWHQVLRQUHGXFHV59IXQFWLRQ
,QWKHVHVLWXDWLRQDVVHVVPHQWRIOHIWKHDUWSUHVVXUHVPD\EHLPSRUWDQW
$OVRDPHDVXUHRIFDUGLDFRXWSXWPD\EHQHHG
&DUGLDFRXWSXWFDQEHPHDVXUHGHLWKHU
,QYDVLYHO\ SXOPRQDU\DUWHU\FDWKHWHU
1RQLQYDVLYHO\ RHVRSKDJHDOGRSSOHU
6ZDQ*DQ]FDWKHWHU
%DOORRQWLSSHGFDWKHWHULQVHUWHGWKURXJKFHQWUDOYHLQ
)ORDWHGWKURXJKULJKWVLGHRIKHDUWLQWRSXOPRQDU\DUWHU\
%DOORRQDOORZV
ZHGJLQJ
LQEUDQFKRISXOPRQDU\DUWHU\
3UHVVXUHUHFRUGHGLVSXOPRQDU\FDSLOODU\ZHGJHSUHVVXUH
*RRGHVWLPDWHRIOHIWDWULDOSUHVVXUH
7LSRIFDWKHWHUFRQWDLQVDWKHUPLVWRU
&DUGLDFRXWSXWFDQDOVREHPHDVXUHGXVLQJWKHUPRGLOXWLRQSU LQFLSDO
,IEORRGSUHVVXUHDQGFDUGLDFRXWSXWDUHNQRZQYDVFXODUUHVLVWDQFHFDQEHFDOFXODWHG
132
,QWHQVLYHFDUH
&RPSOLFDWLRQVRID6ZDQ*DQ]FDWKHWHUDUH
$UUK\WKPLDV
.QRWWLQJDQGPLVSODFHPHQW
&DUGLDFYDOYHWUDXPD
3XOPRQDU\LQIDUFWLRQ
3XOPRQDU\DUWHU\UXSWXUH
%DOORRQUXSWXUH
&DWKHWHUWKURPERVLVRUHPEROLVP
133
,QWHQVLYHFDUH
&DUGLDFDUUHVW DQGUHVXVFLWDWLRQ
)LJXUH $/6DOJRULWKPIRUWKHPDQDJHPHQWRIFDUGLDFDUUHVWLQDGXOWV 5HVXVFLWDWLRQ

&RXQFLO*XLGHOLQHV
&DXVHVRIFDUGLDFDUUHVW
+\SR[LD
+\SRYRODHPLD
+\SRWKHUPLD
+\SHUNDODHPLD
134
,QWHQVLYHFDUH
7HQVLRQSQHXPRWKRUD[
7DPSRQDGH
7R[LFWKHUDSHXWLFGLVRUGHUV
7KURPERHPEROLFHYHQWV
%LEOLRJUDSK\
135
,QWHQVLYHFDUH
6KRFN
6KRFN $FXWHFLUFXODWRU\IDLOXUHZLWKLQDGHTXDWHRULQDSSURSULDWHO\GLVWULEXWHGWLVVXHSHUIXVLRQ
UHVXOWLQJLQJHQHUDOLVHGFHOOXODUK\SR[LD
&DUGLRJHQLFVKRFN
3XPSIDLOXUHRIWHQGXHWRP\RFDUGLDOLQIDUFWLRQ
2EVWUXFWLYHVKRFN
0HFKDQLFDOLPSHGDQFHWRYHQWULFXODURXWIORZ SXOPRQDU\HPEROXVFDUGLDFWDPSRQDGH
+\SRYRODHPLFVKRFN
/RVVRIFLUFXODWLQJEORRGYROXPH EORRGORVVEXUQVSDQFUHDWLWLVHWF
'LVWULEXWLYHVKRFN
$EQRUPDOLWLHVRISHULSKHUDOFLUFXODWLRQ VHSVLVRUDQDSK\OD[LV
$FXWHEORRGORVV
+DHPRJORELQDQG3&9UHPDLQQRUPDOIRUILUVWKRXUV
3ODVPDYROXPHWKHQH[SDQGVDQG+EDQG3&9IDOO
$VVRFLDWHGZLWKLQFUHDVHLQQHXWURSKLOVDQGSODWHOHWV
5HWLFXORF\WHFRXQWLQFUHDVHVRQGD\RU
5HDFKHVPD[LPXPRIE\GD\WR
:LWKRXWWUHDWPHQWKDHPRJORELQEHJLQVWRULVHE\GD\
&DUGLRYDVFXODUVXSSRUW
1HHGWRDFKLHYHDGHTXDWHFDUGLDFRXWSXWDQGWLVVXHSHUIXVLRQ
$LPIRUDPHDQDUWHULDOSUHVVXUHRIDWOHDVWPP+J
)RUWKLVWREHDFKLHYHGLWUHTXLUHV
3UHORDGRSWLPLVDWLRQZLWKYROXPHUHSODFHPHQW
,QRWURSLFVXSSRUW
6RPHSDWLHQWVUHTXLUHLQRWURSHVDQGYDVRSUHVVRUV
2WKHUVUHTXLUHLQRGLODWRUVWRUHGLVWULEXWHEORRGIORZ
&KRLFHRILQRWURSHGHSHQGVRQDFWLRQVRQUHODWLYHDFWLRQVRQV\PSDWKHWLFQHUYRXVV\VWHP
7DEOH 3URSHUWLHVRIFRPPRQO\XVHGLQRWURSLFDQGYDVRSUHVVRUDJHQWV
$GUHQDOLQH
/RZGRVH
+LJKGRVH
1RUDGUHQDOLQH
,VRSUHQDOLQH
'RSDPLQH
/RZGRVH
+LJKGRVH
'RSH[DPLQH
'REXWDPLQH
E

E

D

D
'$
'$

"

1$
1$
1$
1$
1$
1$
1$
1$
,QRWURSLFVXSSRUWRIVKRFNVWDWHV
136
,QWHQVLYHFDUH
&DUGLRJHQLFVKRFN
3DWLHQWVKDYHORZFDUGLDFRXWSXWZLWKKLJKILOOLQJSUHVVXUHDQGYDVFXODUUHVLVWDQFH
'REXWDPLQHLVDQLQRWURSHWKDWUHGXFHVYDVFXODUUHVLVWDQFH
,QRGLODWRUVVXFKDVGRSH[DPLQHDUHDOVRXVHIXO
3XUHYDVRGLODWRUVVXFKDVQLWUDWHVRUQLWURSUXVVLGHPD\DOVREHXVHIXO
2EVWUXFWLYHVKRFN
,QRWURSHVPD\EHXVHIXOWRVXSSRUWP\RFDUGLXPXQWLOGHILQLWLYHWUHDWPHQWDYDLODEOH
+LJKRXWSXWVWDWHV
,QVHYHUHFDVHVYDVRGLODWDWLRQLVUHVLVWDQWWRYDVRFRQVWULFWRUV
3HUIXVLRQSUHVVXUHFDQEHUHVWRUHGZLWKQRUDGUHQDOLQH
'REXWDPLQHFDQEHDGGHGWRLQFUHDVHFDUGLDFRXWSXW
$GUHQDOLQHDJJUHYDWHVVSODQFKQLFLVFKDHPLD
%LEOLRJUDSK\
%DUQDUG0-/LQWHU63.$FXWHFLUFXODWRU\VXSSRUW %U 0HG-

+LQGV&-:DWVRQ'&LUFXODWRU\VXSSRUW%U0HG-
137
,QWHQVLYHFDUH
,QHDUO\VILUVWRSHQKHDWSURFHGXUHVZHUHSHUIRUPHGXQGHU
&RROLQJDQFLUFXODWRU\DUUHVW
&URVVFLUFXODWLRQEHWZHHQSDUHQWDQGFKLOG
&DUGLRSXOPRQDU\E\SDVVZLWKSXPSDQGR[\JHQDWRU
)LJXUH &RPSRQHQWVRIFDUGLRSXOPRQDU\E\SDVVFLUFXLW
&DQQXODLVLQVHUWHGLQWRULJKWDWULXPWRGUDLQYHQRXVUHWXUQ
9HQRXVEORRGSDVVHVLQWRYHQRXVUHVHUYRLUXQGHUJUDYLW\
2[\JHQDWHGDQG&2 UHPRYHGXVXDOO\E\PHPEUDQHR[\JHQDWRU
+HDWH[FKDQJHUFRQWUROEORRGWHPSHUDWXUH
6XUJHU\RIWHQSHUIRUPHGZLWKq&RIK\SRWKHUPLD
$PPILOWHUUHPRYHVDLUEXEEOHV
3XPSUHWXUQVEORRGLQWRDRUWDGLVWDOWRDFURVVFODPS
6XFWLRQXVHGWRUHPRYHEORRGIURPRSHUDWLYHILHOG
5HWXUQHGWRSDWLHQWYLDFDUGLRWRP\UHVHUYRLU
&RPSOLFDWLRQVRIE\SDVV
3URORQJHGE\SDVVLQGXFHVF\WRNLQHDFWLYDWLRQDQGDQLQIODPPDWRU\UHVSRQVH
5HVXOWVLQ
5HGFHOOGDPDJHDQGKDHPRJORELQXULD
7KURPERF\WRSHQLD
&ORWWLQJDEQRUPDOLWLHV
5HGXFHGSXOPRQDU\JDVH[FKDQJH
&HUHEURYDVFXODUDFFLGHQWV
138
,QWHQVLYHFDUH
$HWLRORJ\
3ULQFLSDOFDXVHVYDU\EHWZHHQ:HVWHUQDQGGHYHOR SLQJFRXQWULHV
&RPPRQFDXVHVDUH
&RQJHQLWDOYDOYXODUDEQRUPDOLWLHVHJELFXVSLGDRUWLFYDOYH
,QIHFWLYHHQGRFDUGLWLV
5KHXPDWLFIHYHU
'HJHQHUDWLYHYDOYHGLVHDVH
,VFKDHPLFKHDUWGLVHDVH
3DWKRORJ\
5KHXPDWLFIHYHUUHVXOWVIURPLPPXQHPHGLDWHGLQIODPPDWLRQRIKHDUWYDOYH
5HVXOWVIURPFURVVUHDFWLRQEHWZHHQ*URXS$E KDHPRO\WLFVWUHSDQGFDUGLDFSURWHLQV
9DOYHGLVHDVHUHVXOWVLQHLWKHUVWHQRVLVRULQFRPSHWHQFH
6WHQRVLVFDXVHVSUHVVXUHORDGRQSUR[LPDOFKDPEHU
,QFRPSHWHQFHFDXVHVYROXPHORDGSUR[LPDOFKDPEHU
7KURPEXVPD\IRUPLQGLODWHGOHIWDWULXPUHVXOWLQJLQSHULSKHUDOHPEROLVDWLRQ
&OLQLFDOIHDWXUHV
$RUWLFVWHQRVLV
$QJLQDSHFWRULV
6\QFRSDOHSLVRGHV
/HIWYHQWULFXODUIDLOXUH
6ORZXSVWURNHWRDUWHULDOSXOVH
QG
(MHFWLRQV\VWROLFPXUPXULQ ULJKWLQWHUFRVWDOVSDFH
$RUWLFUHJXUJLWDWLRQ
&RQJHVWLYHFDUGLDFIDLOXUH
,QFUHDVHGSXOVHSUHVVXUH
:DWHUKDPPHUSXOVH
(DUO\GLDVWROLFPXUPXUDWOHIWVWHUQDOHGJH
0LWUDOVWHQRVLV
3XOPRQDU\K\SHUWHQVLRQ
3DUR[\VPDOQRFWXUQDOG\VSQRHD
$WULDOILEULOODWLRQ
/RXGILUVWKHDUWVRXQG
0LGGLDVWROLFPXUPXUDWDSH[
0LWUDOUHJXUJLWDWLRQ
3XOPRQDU\RHGHPD
$SH[EHDWGLVSODFHODWHUDOO\
$SLFDOSDQV\VWROLFPXUPXU
7ULFXVSLGVWHQRVLV
)DWLJXHDQGSHULSKHUDORHGHPD
+HSDWRPHJDO\DQGDVFLWHV
,QFUHDVHG-93ZLWKSURPLQHQWDZDYHV
'LDVWROLFPXUPXUDWOHIWVWHUQDOHGJH
139
,QWHQVLYHFDUH
7ULFXVSLGUHJXUJLWDWLRQ
3XOVDWLOHKHSDWRPHJDO\DQGDVFLWHV
5LJKWYHQWULFXODUKHDYH
3URPLQHQW-93ZLWKODUJHYZDYHV
3DQV\VWROLFPXUPXUDWOHIWVWHUQDOHGJH
1HZ<RUN+HDUW$VVRFLDWLRQFODVVLILFDWLRQ
'\VSQRHDFDQEHFODVVLILHGE\VHYHULW\RIV\PSWRP
1<+$,
&DSDEOHRIRUGLQDU\SK\VLFDODFWLYLW\
1<+$,,
2UGLQDU\DFWLYLW\LQGXFHVG\VSQRHD
1<+$,,,
/LPLWDWLRQRISK\VLFDODFWLYLW\
1<+$,9
6\PSWRPVDWUHVW
,QYHVWLJDWLRQ
,QYHVWLJDWLRQRIYDOYXODUKHDUWGLVHDVHZLOOUHTXLUH
(OHFWURFDUGLRJUDP
&KHVW[UD\
(FKRFDUGLRJUDSK\
&DUGLDFFDWKHWHULVDWLRQZLWKPHDVXUHPHQWRIWUDQVYDOYXODUJUDGLHQW
0HGLFDO0DQDJHPHQW
)HZSDWLHQWVZLWKV\PSWRPDWLFDRUWLFVWHQRVLVVXUYLYH\HDUV
$SSUR[LPDWHO\RIV\PSWRPDWLFSDWLHQWVZLOOVXIIHUVXGGHQGHDWK
$V\PSWRPDWLFPLWUDOVWHQRVLV LVZHOOWROHUDWHGZLWKJUHDWHUWKDQ\HDUVXUYLYDO
0HGLFDOPDQDJHPHQWFRQVLVWVRI
7UHDWPHQWRIFDUGLDFIDLOXUH
'LJLWDOLVDWLRQLILQDWULDOILEULOODWLRQ
$QWLFRDJXODWLRQLIHYLGHQFHRISHULSKHUDOHPEROLVDWLRQ
6XUJLFDOPDQDJHPHQW
$SSUR[LPDWHO\SDWLHQWVSHU\HDUXQGHUJRYDOYHUHSODFHPHQW
$RUWLFYDOYHLVFRPPRQHVWWREHUHSODFHGaRIRSHUDWLRQV
,QGLFDWLRQVIRUVXUJHU\
$RUWLFYDOYHUHSODFHPHQW
6\PSWRPDWLFDRUWLFVWHQRVLV
$V\PSWRPDWLFDRUWLFVWHQRVLVZLWKSUHVVXUHJUDGLHQW!PP+J
6\PSWRPDWLFDRUWLFUHJXUJLWDWLRQ
0LWUDOYDOYHUHSODFHPHQW
6\PSWRPDWLFPLWUDOVWHQRVLVHVSHFLDOO\LISHULSKHUDOHPEROL

0LWUDOYDOYHDUHDOHVVWKDQFP
6XUJHU\XVXDOO\SHUIRUPHGWKURXJKDPHGLDQVWHUQRWRP\
2QFDUGLRSXOPRQDU\E\SDVVZLWKV\VWHPLFK\SRWKHUPLD
+HDUWLVDUUHVWHGDQGSURWHFWHGZLWKFDUGLRSOHJLFVROXWLRQ
9DOYHFDQEHHLWKHUUHSDLUHGRUUHSODFHG
9DOYHUHSDLUUHVXOWVLQEHWWHUKDHPRG\QDPLFV
'RHVQRWUHTXLUHORQJWHUPDQWLFRDJXODWLRQ
140
,QWHQVLYHFDUH
3URVWKHWLFKHDUWYDOYHV
3ULQFLSDOW\SHV
+HWHURJUDIWV VWHQWHGRUXQVWHQWHGHJSLJ
+RPRJUDIWV
%DOODQGFDJHHJ6WDUU(GZDUGV
7LOWLQJGLVFHJ%MRUN6KLOH\
0HFKDQLFDOYDOYHV
5HDGLO\DYDLODEOH
*RRGGXUDELOLW\
5HTXLUHOLIHORQJDQWLFRDJXODWLRQ
5LVNRIHQGRFDUGLWLV
+HWHURJUDIWV
5HDGLO\DYDLODEOH
/LPLWHGOLIHVSDQDRUWLFYDOYHVa\HDUVPLWUDOYDOYHa\HDUV
/LPLWHGGXUDWLRQRIDQWLFRDJXODWLRQ
+RPRJUDIWV
1RWUHDGLO\DYDLODEOH
'RQRWUHTXLUHDQWLFRDJXODWLRQ
/RQJWHUPRXWFRPHXQFHUWDLQ
%LEOLRJUDSK\
141
,QWHQVLYHFDUH
5HVSLUDWRU\
5HVSLUDWRU\VXSSRUW
2[\JHQVDWXUDWLRQ
2[\JHQGHOLYHU\GHSHQGVRQ
&DUGLDFRXWSXW
+DHPRJORELQFRQFHQWUDWLRQ
$UWHULDOR[\JHQVDWXUDWLRQ
$UWHULDOR[\JHQVDWXUDWLRQ6 D2GHSHQGVRQDUWHULDOR[\JHQWHQVLRQ3 D2
)LJXUH 7KHR[\JHQGLVVRFLDWLRQFXUYH
$ DUWHULRYHQRXVR[\JHQFRQWHQWGLIIHUHQFH
1RWHWKDWGXHWRWKHQRQOLQHDUQDWXUHRIWKHFXUYH%LVJUHDWHUWKDQ$
3XOVHR[LPHWU\
$UWHULDOR[\JHQVDWXUDWLRQFDQEHPHDVXUHGQRQLQYDVLYHO\XVLQJSXOVHR[LPHWU\
5HDGLQJXQUHOLDEOHLI
,QWHQVHYDVRFRQVWULFWLRQ
-DXQGLFH
0HWKDHPRJORELQDHPLD
142
,QWHQVLYHFDUH
5HVSLUDWRU\IDLOXUH
+\SR[DHPLFIDLOXUHW\SH 5HGXFHG3 D&2UHGXFHG3D2

9HQWLODWRU\IDLOXUHW\SH ,QFUHDVHG3 D&2UHGXFHG3D2
3DWKRSK\VLRORJ\RIUHVSLUDWRU\IDLOXUH
)DLOXUHRIR[\JHQDWLRQK\SR[DHPLDW\SH,IDLOXUH
/RZLQVSLUHGR[\JHQSDUWLDOSUHVVXUH
$OYHRODUK\SRYHQWLODWLRQ
'LIIXVLRQLPSDLUPHQW
9HQWLODWLRQWRSHUIXVLRQPLVPDWFK
5LJKWWROHIWVKXQW
)DLOXUHRIYHQWLODWLRQK\SHUFDSQLDW\SH,,IDLOXUH
$EQRUPDOLWLHVRIFHQWUDOUHVSLUDWRU\GULYH
1HXURPXVFXODUG\VIXQFWLRQ
$EQRUPDOLWLHVRIWKHFKHVWZDOO
$EQRUPDOLWLHVRIWKHDLUZD\
$EQRUPDOLWLHVRIWKHOXQJ
7DEOH &DXVHVRIUHVSLUDWRU\IDLOXUH
9HQWLODWRU\IDLOXUH
'HUDQJHGPHFKDQLFV
&23'
&KHVWWUDXPD
5HVSLUDWRU\GHSUHVVLRQ
'UXJV
7UDXPD
5DLVHGLQWUDFUDQLDOSUHVVXUH
6SLQDOFRUGOHVLRQV
&HUYLFDOVSLQHWUDXPD
0RWRUQHXURQHGLVHDVH
3HULSKHUDOQHXURSDWK\
0\DVWKHQLDJUDYLV
0XVFOHUHOD[DQWV
+\SR[DHPLFIDLOXUH
&ROODSVH
&RQVROLGDWLRQ
&RQWXVLRQ
3XOPRQDU\RHGHPD
3XOPRQDU\HPEROXV
$UWLILFLDOYHQWLODWLRQ
,QGLFDWLRQVIRUWUDFKHDOLQWXEDWLRQ
)DFLOLWDWLRQRIPHFKDQLFDOYHQWLODWLRQ
3URWHFWLRQIURPDVSLUDWLRQ
)DFLOLWDWLRQRIWUDFKHREURQFKLDOVXFWLRQ
5HOLHIRIXSSHUDLUZD\REVWUXFWLRQ
,QGLFDWLRQVIRUPHFKDQLFDOYHQWLODWLRQ
6XSSRUWLQUHVSLUDWRU\IDLOXUH
&RPDKHDGLQMXU\GUXJRYHUGRVH
&RQWURORILQWUDFUDQLDOSUHVVXUH
5HGXFWLRQRIPHWDEROLFGHPDQGV
$OORZPXVFOHUHOD[DWLRQDQGIDFLOLWDWHVXUJHU\
143
,QWHQVLYHFDUH
3RVWRSHUDWLYHYHQWLODWLRQ
%HQHILWVRIYHQWLODWLRQ
(OLPLQDWHVFDUERQGLR[LGH
,PSURYHVR[\JHQDWLRQE\
5HGXFLQJUHVSLUDWRU\ZRUNDQGR[\JHQFRQVXPSWLRQ
$GPLQLVWHULQJDKLJKHULQVSLUHGR[\JHQFRQWHQW) L2
3UHYHQWLQJRUUHYHUVLQJDWHOHFWDVLV
0RGHV RIYHQWLODWLRQ
0RVWYHQWLODWRUVDUHYROXPHWLPHF\FOHGZLWKDSUHVVXUHOLPLW
'HOLYHUSUHVHWWLGDOYROXPHLUUHVSHFWLYHRIOXQJFRPSOLDQFH
3UHVVXUHOLPLWUHGXFHVULVNRIRYHULQIODWLRQ
3RVVLEOHPRGHVLQZKLFKWKH\FDQEHXVHGDUH
&RQWUROOHGPHFKDQLFDOYHQWLODWLRQ
$VVLVWHGFRQWUROOHGRUWULJJHUHGYHQWLODWLRQ
,QWHUPLWWHQWPDQGDWRU\YHQWLODWLRQ
3UHVVXUHVXSSRUW
9HQWLODWRUYDULDEOHV
9DULDEOHVRQDYHQWLODWRUWKDWFDQEHSUHVHWRUDOWHUHGLQFOXGH
7LGDOYROXPH
9HQWLODWLRQUDWH
,QVSLUDWRU\WRH[SLUDWRU\UDWLR
)ORZ ZDYHIRUP
3DUWLDOSUHVVXUHRILQVSLUHGR[\JHQ
3UHVVXUHOLPLW
3RVLWLYHHQGH[SLUDWRU\SUHVVXUH3((3
3RVLWLYHDLUZD\SUHVVXUH&3$3
&RPSOLFDWLRQVRIYHQWLODWLRQ
3UREOHPVDVVRFLDWHGZLWKHQGRWUDFKHDOWXEH
7UDXPD
2EVWUXFWLRQ
0LVSODFHPHQW
'LVFRQQHFWLRQ
%DURWUDXPD
3QHXPRWKRUD[
6XUJLFDOHPSK\VHPD
,PSDLUHGYHQRXVUHWXUQ
6RGLXPDQGZDWHUUHWHQWLRQ
%URQFKRSQHXPRQLD
%LEOLRJUDSK\
6KHOO\031LJKWLQJDOH35HVSLUDWRU\VXSSRUW%U0HG-
7RELQ0-$GYDQFHVLQPHFKDQLFDOYHQWLODWLRQ1(QJ-0HG
144
,QWHQVLYHFDUH
&RPSOLFDWLRQVRIWKRUDFLFRSHUDWLRQV
,QWUDWKRUDFLFEOHHGLQJ
8VXDOO\RFFXUVIURPOXQJSDUHQFK\PDRUEURQFKLDOYHVVHOV
0D\SUHVHQWZLWKFOLQLFDOIHDWXUHVRIK\SRYRODHPLD
8VXDOO\GHWHFWDEOHIURPPHGLDVWLQDORUSOHXUDOGUDLQV
'UDLQVPD\KRZHYHUDEORFNDQGKDHPRWKRUD[PD\EHGHWHFWHGRQFKHVW[ UD\
&DQRIWHQEHWUHDWHGFRQVHUYDWLYHO\ZLWKWUDQVIXVLRQ
5HRSHUDWLRQUHTXLUHGLI
5DSLGEORRGORVVYLDFKHVWGUDLQ
6LJQLILFDQWLQWUDSOHXUDOFROOHFWLRQRQFKHVW[UD\
3HUVLVWHQWK\SRYRODHPLDGHVSLWHWUDQVIXVLRQ
+\SR[LDGXHWRFRPSUHVVLRQRIXQGHUO\LQJOXQJ
6SXWXPUHWHQWLRQDQGDWHOHFWDVLV
)DLOXUHWRFOHDUEURQFKLDOVHFUHWLRQVFDQUHVXOWLQ
%URQFKLDOREVWUXFWLRQ
$WHOHFWDVLV
/REDUFROODSVH
6HFRQGDU\SXOPRQDU\LQIHFWLRQ
3UHVHQWVDVWDFK\SQRHDDQGK\SR[LD
([DPLQDWLRQXVXDOO\VKRZVUHGXFHGELODWHUDOEDVDODLUHQWU\
3UHYHQWLRQLVSUHIHUUHGWRWUHDWPHQW
5LVNRIVSXWXPUHWHQWLRQFDQEHUHGXFHGE\
3UHRSHUDWLYHFHVVDWLRQRIVPRNLQJ
$GHTXDWHSRVWRSHUDWLYHSDLQUHOLHI
&KHVWSK\VLRWKHUDS\
+XPLGLILFDWLRQRILQVSLUHGR[\JHQ
%URQFKRGLODWRUWKHUDS\
(DUO\PRELOLVDWLRQDIWHUVXUJHU\
7UHDWPHQWUHTXLUHGIRUPDOFKHVWSK\VLRWKHUDS\
0LQLWUDFKHRVWRP\DQGVXFWLRQPD\EHUHTXLUHG
$QWLELRWLFVVKRXOGEHUHVHUYHGIRUWKRVHZLWKSURYHQSQHXPRQLD
$LUOHDN
)ROORZLQJOXQJUHVHFWLRQUHVLGXDOOXQJWLVVXHH[SDQGVWRILOOSOHXUDOFDYLW\
5DZDUHDFDQUHVXOWLQDQDLUOHDNLQWRWKHSOHXUDOFDYLW\
3UHVHQWVDVSHUVLVWDLUOHDNRUEXEEOLQJRIFKHVWGUDLQ
8VXDOO\VHWWOHVVSRQWDQHRXVO\RYHUGD\V
0D\UHTXLUHVXFWLRQRQSOHXUDOGUDLQV
$SSRVLWLRQRIOXQJWRSDULHWDOSOHXUDHQFRXUDJHVHIILFLHQWKHDOLQJ
%URQFKRSOHXUDOILVWXOD
5HVXOWVIURPPDMRUDLUOHDNIURPSQHXPRQHFWRP\EURQFKLDOVWXPS
6HHQLQRI SDWLHQWVXQGHUJRLQJSQHXPRQHFWRP\
$LUZD\WKXVGLUHFWO\FRPPXQLFDWHVZLWKSOHXUDOVSDFH
8VXDOO\RFFXUVDVDUHVXOWIRUPDOHDNIURPDVXWXUHOLQH
2FFXUVSDUWLFXODUO\LQWKRVHZLWKIDFWRUVLPSDLULQJZRXQGKHDOLQJ
0RVWFRPPRQO\RFFXUVGD\VDIWHUVXUJHU\
3UHVHQWVZLWKVXGGHQEUHDWKOHVVQHVVDQGH[SHFWRUDWLRQRIEORRGVWDLQHGIOXLG
)OXLGLVWKDWZKLFKQRUPDOO\ILOOVWKHSRVWSQHXPRQHFWRP\VSDFH
145
,QWHQVLYHFDUH
(PHUJHQF\WUHDWPHQWFRQVLVWVRIO\LQJSDWLHQWZLWKRSHUDWHGVLGHGRZQZDUGV
3URYLGLQJR[\JHQDQGGUDLQLQJWKHSOHXUDOVSDFH
7KRUDFRWRP\DQGUHSDLURIILVWXODPD\EHUHTXLUHG
5HSDLUPD\EHUHLQIRUFHGZLWKRPHQWDORULQWHUFRVWDOVPXVFOHSDWFK
7KRUDFRSODVW\PD\EHUHTXLUHGWRREOLWHUDWHWKHSRVWSQHXPRQHFWRP\VSDFH
%LEOLRJUDSK\
'HVFKDPSV&3DLUROHUR3&$OOHQ067UDV WHFN9)0DQDJHPHQWRISRVWSQHXPRQHFWRP\HPS\HPD
DQGEURQFKRSOHXUDOILVWXOD&KHVW6XUJ&OLQ1$P
146
,QWHQVLYHFDUH
$FXWHUHVSLUDWRU\GLVWUHVVV\QGURPHZDVILUVWUHFRJQLVHGLQV
,QLWLDOO\WHUPHGDGXOWUHVSLUDWRU\GLVWUHVVV\QGURPH
&DQRFFXUVLQERWKFKLOGUHQDQGDGXOWV
2FFXUVIROORZLQJPDQ\GLIIHUHQWLQIODPPDWRU\LQVXOWVWRWKHOXQJV
'HILQLWLRQ
7ZRFRQGLWLRQUHFRJQLVHG
$FXWHOXQJLQMXU\$/,
$FXWHUHVSLUDWRU\GLVWUHVVV\QGURPH$5'6
%RWKFRQVLVWRIDQDFXWHOXQJLQMXU\ZLWK
%LODWHUDOSXOPRQDU\LQILOWUDWHVRQFKHVW[UD\
3&:3OHVVWKDQPP+J
1RHYLGHQFHRIOHIWDWULDOK\SHUWHQVLRQ
,Q$/, 3D2)L2
,Q$5'6 3D2)L2
$HWLRORJ\
'LUHFWOXQJLQMXU\
3QHXPRQLD
3XOPRQDU\FRQWXVLRQ
)DWHPEROLVP
,QKDODWLRQDOLQMXU\
,QGLUHFWOXQJLQMXU\
6HSVLV
7UDXPD
$FXWHSDQFUHDWLWLV
3DWKRORJ\
,UUHVSHFWLYHRIDHWLRORJ\WKHPDLQSDWKRORJLFDOIHDWXUHLVGLIIXVHDOYHRODUGDPDJH
(QGRWKHOLDOLQMXU\UHVXOWVLQLQFUHDVHGSHUPHDELOLW\
3URWHLQULFKH[XGDWHIRXQGLQDOYHROL
1HXWURSKLOVDUHLPSRUWDQWLQLQIODPPDWRU\SURFHVV
&\WRNLQHVDQGHQ]\PHVPD\EHUHVSRQVLEOHIRUPDQ\RIWKHIHDWXUHV
5HVROXWLRQRILQIODPPDWLRQFDQRFFXU
8VXDOO\DVVRFLDWHGZLWKVRPHGHJUHHRISXOPRQDU\ILEURVLV
&OLQLFDOIHDWXUHV
$5'6LVXVXDOO\DSURJUHVVLYHFOLQLFDOSUREOHP
3UHVHQWVZLWKDFXWHUHVSLUDWRU\IDLOXUH
+\SR[DHPLDLVRIWHQUHIUDFWRU\WRLQFUHDVLQJUHVSLUDWRU\VXSSRUW
%LODWHUDOLQILOWUDWHVSUHVHQWRQFKHVW[UD\
:LWKWLPHFDQSURJUHVVWRILEURVLQJDOYHROLWLV
/XQJFRPSOLDQFHLVUHGXFHGDQGK\SR[DHPLDSHUVLVWV
3XOPRQDU\K\SHUWHQVLRQFDQSURJUHVVWRULJKWKHDUWIDLOXUH
5HVROXWLRQFDQRFFXURYHUPRQWKV
147
,QWHQVLYHFDUH
/XQJIXQFWLRQFDQUHWXUQWRQRUPDO
2YHUDOOPRUWDOLW\LVDSSUR[LPDWHO\
0DQDJHPHQW
6XSSRUWLYHLQWHQVLYHFDUHWKHUDS\LVLPSRUWDQW
6HSVLVVKRXOGEHWUHDWHGZLWKDSSURSULDWHDQWLELRWLFV
&DUHIXOIOXLGEDODQFHLVLPSRUWDQW
2YHUK\GUDWLRQVKRXOGEHDYRLGHG
1XWULWLRQDOVWDWXVVKRXOGEH DGGUHVVHG
0HFKDQLFDOYHQWLODWLRQLVLPSRUWDQWEXWWKHH[DFWVWUDWHJ\LVFRQWURYHUVLDO
*HQHUDOO\EHOLHYHGWKDWYHQWLODWLRQZLWKORZWLGDOYROXPHVLVEHQHILFLDO
+LJKWLGDOYROXPHVFDQH[DFHUEDWHOXQJLQMXU\
5ROHRISRVLWLYHHQGH[SLUDWRU\SUHVVXUHXQFOHDU
,QKDOHGQLWULFR[LGHRUVXUIDFWDQWDUHRIQRSURYHQEHQHILW
6WHURLGVPD\KDYHVRPHEHQHILFLDOHIIHFW
%LEOLRJUDSK\
6WRWW65HFHQWDGYDQFHVLQLQWHQVLYHFDUH%U0HG-
7UHDVXUH7$VXUJHRQ
VYLHZRIDGXOWUHVSLUDWRU\GLVWUHVVV\QGU RPH%U-+RVS0HG
:DUH/%0DWWKD\0$7KHDFXWHUHVSLUDWRU\GLVWUHVVV\QGURPH 1(QJO-0HG
148
,QWHQVLYHFDUH
&LUFXODWRU\IDLOXUH
&ULWHULDIRUGLDJQRVLV
%UDG\FDUGLDKHDUWUDWHESP
+\SRWHQVLRQPHDQDUWHULDOSUHVVXUHPP+J
9HQWULFXODUWDFK\FDUGLDRUILEULOODWLRQ
0HWDEROLFDFLGRVLVS+
0DQDJHPHQW
2SWLPLVHFDUGLDFSUHORDG
0D[LPLVHFDUGLDFFRQWUDFWLOLW\ZLWKLQRWURSHV
0D[LPLVHSHUIXVLRQSUHVVXUHVZLWKYDVRSUHVVRUV
&RUUHFWDQDHPLD
7UHDWDUUK\WKPLD
5HVSLUDWRU\IDLOXUH
5HVSLUDWRU\UDWHRU!EUHDWKVSHUPLQXWH
+\SHUFDSQLD3D&2!N3D
+\SR[DHPLD
0DQDJHPHQW
2[\JHQ
0HFKDQLFDOYHQWLODWLRQ
3((3RU&3$3
([WUDRULQWUDFRUSRUHDOJDV H[FKDQJH
$FXWHUHQDOIDLOXUH
8ULQHRXWSXWPOSHUKRXUV
6HUXPFUHDWLQLQH!PPROO
0DQDJHPHQW
&RQVHUYDWLYHPHDVXUHV
)OXLGDQGSRWDVVLXPUHVWULFWLRQ
'UXJGRVHDGMXVWPHQW
+DHPRILOWUDWLRQRIGLDO\VLV
+DHPDWRORJLFDOIDLOXUH

/HXFRSHQLD:%&FHOOPP

7KURPERF\WRSHQLDSODWHOHWPP
(YLGHQFHRIGLVVHPLQDWHGLQWUDYDVFXODUFRDJXODWLRQ
0DQDJHPHQW
5HGFHOODQGSODWHOHWWUDQVIXVLRQ
)UHVKIUR]HQSODVPD
&RUUHFWDQWLWKURPELQ,,,GHILFLHQF\
+HSDWLFIDLOXUH
&RDJXODWLRQGHIHFW
5LVLQJKHSDWLFHQ]\PHV
0DQDJHPHQW
149
,QWHQVLYHFDUH
)UHVKIUR]HQSODVPD
1XWULWLRQDOVXSSRUW
&RUUHFWK\SRDOEXPLQDHPLD
*DVWURLQWHVWLQDOIDLOXUH
,OHXV
*DVWURSDUHVLV
+DHPRUUKDJH
0DQDJHPHQW
3DUHQWHUDO QXWULWLRQ
6WUHVVXOFHUSURSK\OD[LV
6HOHFWLYHJDVWURLQWHVWLQDOGHFRQWDPLQDWLRQ
1HXURORJLFDOIDLOXUH
'HSUHVVHGOHYHORIFRQVFLRXVQHVV*ODVJRZFRPDVFRUH
)LWV
0DQDJHPHQW
2[\JHQDWLRQ
&RQWUROVHL]XUHV
%LEOLRJUDSK\
150
,QWHQVLYHFDUH
5HQDOIDLOXUH
5HGXFWLRQLQUHQDOH[FUHWRU\RUUHJXODWRU\IXQFWLRQ
5HVXOWVLQWKHUHWHQWLRQRIZDVWHSURGXFWVQRUPDOO\H[FUHWHGE\WKHNLGQH\
1RUPDODGXOWXULQHRXWSXW PONJKU
5HQDOIDLOXUHFDQEH
$QXULF
2OLJXULF
3RO\XULF
7DEOH &DXVHVRIDFXWHUHQDOIDLOXUH
7\SH
3UHUHQDOIDLOXUH
,QWULQVLFUHQDOIDLOXUH
5HQDORXWIORZREVWUXFWLRQ
&DXVHV
+\SRYRODHPLDVHFRQGDU\WRDFXWHEORRGRUSODVPDORVV
)OXLGDQGHOHFWURO\WHGHSOHWLRQ
+\SRWHQVLRQVHFRQGDU\WRFDUGLRJHQLFVKRFN
+\SRWHQVLRQVHFRQGDU\WRVHSVLV
$FXWHWXEXODUQHFURVLVGXHWRSURORQJHGUHQDOK\SRSHUIXVLRQ
$FXWHWXEXODUQHFURVLVVHFRQGDU\WRSLJPHQWQHSKURSDWK\
$FXWHWXEXODUQHFURVLVGXHWRFRQWUDVWQHSKURSDWK\
$FXWHJORPHUXORQHSKULWLV
'UXJLQGXFHGQHSKURWR[LFGDPDJH
$WKHURHPEROLFGLVHDVH
$FXWHS\HORQHSKULWLV
&DOFXOL
%ORRGFORW
8UHWHULFGDPDJHDQGOLJDWLRQ
3URVWDWLFK\SHUWURSK\
%LRFKHPLFDOFKDQJHVRIDFXWHUHQDOIDLOXUH
+\SRQDWUDHPLD
+\SHUNDODHPLD
+\SRFDOFDHPLD
0HWDEROLFDFLGRVLV
8ULQDU\ELRFKHPLVWU\
,QSUHUHQDOIDLOXUH
8ULQHVSHFLILFJUDYLW\ !
/RZXULQDU\VRGLXP PPROO
+LJKXULQDU\XUHD !PPROO
+LJKRVPRODOLW\ !PRVPNJ
,QLQWULQVLFUHQDOIDLOXUH
8ULQHVSHFLILFJUDYLW\
+LJKXULQDU\VRGLXP !PPROO
/RZXULQDU\XUHD PPROO
,VRWRQLFXULQH PRVPNJ
151
,QWHQVLYHFDUH
0DQDJHPHQWRIUHQDOIDLOXUH
5HPRYHSUHFLSLWDWLQJFDXVH
0RVWVXUJLFDOSDWLHQWVDUHK\SRYRODHPLF
5HTXLUHYROXPHUHVXVFLWDWLRQ
,ILQDGHTXDWHSHUIXVLRQSUHVVXUHFRQVLGHULQRWURSLFVXSSRUW
2[\JHQ
&RQVLGHUELFDUERQDWHLI
%DVHH[FHVV!
$UWHULDOS+
+\SHUNDODHPLD
5HTXLUHVXUJHQWWUHDWPHQWLI
6\PSWRPDWLF
(&*FKDQJHV LQFUHDVHGSULQWHUYDOWHQWHGWZDYHVYHQWULFXODUWDFK\FDUGLD
6HUXPSRWDVVLXP!PPROO
7UHDWPHQWRSWLRQVDUH
POFDOFLXPFKORULGHLQWUDYHQRXVO\
XDFWUDSLGLQPOGH[WURVH
6DOEXWDPROQHEXOLVHU
&DOFLXPUHVRQLXPPJSUWZLFHGDLO\
%LEOLRJUDSK\
152
,QWHQVLYHFDUH
6HSVLVDQG6,56
6HYHUHVHSVLVDIIHFWVDQQXDOO\LQWKH8QLWHG6WDWHV
'HVSLWHLPSURYHPHQWVLQFULWLFDOFDUHPRUWDOLW\RIUHPDLQVXQFKDQJHG
'HILQLWLRQV
%DFWHUDHPLD
6,56
7KHSUHVHQFHRIYLDEOHEDFWHULDLQWKHEORRGVWUHDP
7KHV\VWHPLFLQIODPPDWRU\UHVSRQVHWRDYDULHW\RIFOLQLFDOLQVXOWV
PDQLIHVWE\WZRRUPRUHRIWKHIROORZLQJ
7HPSHUDWXUH!q&RUq
+HDUW5DWH!ESP
5HVSLUDWRU\5DWH!EUHDWKVSHUPLQXWHRU3D&2 !N3D

:KLWH&HOO&RXQW!RUSHUPP
6HSVLV
6,56ZLWKGRFXPHQWHGLQIHFWLRQ
6HSWLF6KRFN
6HSVLVZLWKK\SRWHQVLRQGHVSLWHDGHTXDWHIOXLGUHVXVFLWDWLRQ
6HYHUH6,56
6,56ZLWKGRFXPHQWHGLQIHFWLRQDQGK\SRSHUIXVLRQK\SRWHQVLRQDQG
RUJDQG\VIXQFWLRQ
$HWLRORJ\RI6,56
6,56FDQDULVHIURPDQXPEHURIDHWLRORJLFDOWULJJHUV
,QIHFWLRQ EDFWHULDOYLUDOIXQJDO
+\SRYRODHPLFVKRFN
7UDXPD
%XUQV
7LVVXHLVFKDHPLD
3DQFUHDWLWLV
%DFWHULDO,QIHFWLRQLVFRPPRQHVWFDXVH
GXHWRJUDPQHJDWLYHRUJDQLVPV
GXHWRJUDPSRVLWLYHRUJDQLVPV
%LEOLRJUDSK\
3DUNHU6- :DWNLQV3( ,PPXQRPRGXODWRU\WKHUDSLHVRIVHSVLVDQG6,56 ,Q -RKQVRQ&' 7D\ORU,

HGV 5HFHQWDGYDQFHVLQVXUJHU\ (GLQEXUJK&KXUFKLOO/LYLQJVWRQ
3DWHUVRQ5/:HEVWHU156HSVLVDQGWKHV\VWHPLFLQIODPPDWRU\UHVSRQVHV\QGURPH -5&ROO6XUJ
(G
:KHHOHU$3%HUQDUG*57UHDWLQJSDWLHQWVZLWKVHYHUHVHSVLV 1(QJO-0HG
153
,QWHQVLYHFDUH
3QHXPRQLDOXQJDEVFHVVDQGHPS\HPD
/XQJDEVFHVV
6RPHSDWLHQWVZLWKSQHXPRQLDGHYHORSIRFDOQHFURVLVDQGDOXQJDEVFHVV
3DUWLFXODUO\RFFXUVLQSDWLHQWVZLWKPDOLJQDQF\DQGPDOQXWULWLRQ
&DQDOVRRFFXUIROORZLQJDVSLUDWLRQRULQKDODWLRQRIDIRUHLJQERG\
'LDJQRVLVFDQEHGLIILFXOW
&OLQLFDOIHDWXUHV
8VXDOO\FOLQLFDOIHDWXUHVRISQHXPRQLDWKDWIDLOVWRLPSURYHZLWKDQWLELRWLFV
3DWLHQWGHYHORSVSOHXULWLFFKHVWSDLQDQGKDHPRSW\VLV
9ROXPHRIVSXWXPSURGXFHGPD\LQFUHDVH
3DWLHQWVXVXDOO\V\VWHPLFDOO\XQZHOOZLWKVZLQJLQJS\UH[LD
([DPLQDWLRQXVXDOO\VKRZVVLJQVRISQHXPRQLD
&RPPRQHVWFRPSOLFDWLRQLVDQHPS\HPD
'LIIHUHQWLDOGLDJQRVLVLQFOXGHV
3ULPDU\OXQJQHRSODVP
7XEHUFXORVLV
$VSHUJLOORVLV
/XQJF\VW
,QYHVWLJDWLRQV
&KHVW[UD\PD\VKRZFDYLW\ZLWKDLUIOXLGOHYHO
&7VFDQQLQJZLOOFRQILUPGLDJQRVLVRIFKHVW[UD\LQFRQFOXVLYH
%URQFKRVFRS\VKRXOGEHFRQVLGHUHGWRH[FOXGHIRUHLJQERG\
0DQDJHPHQW
$SSURSULDWHDQWLELRWLFWKHUDS\EDVHGRQVSXWXPFXOWXUHUHVXOW
3HUFXWDQHRXVDVSLUDWLRQLIIDLOVWRLPSURYHZLWKDQWLELRWLFV
)RUDEVFHVVHVJUHDWHUWKDQFPGLDPHWHURSHQGUDLQDJHPD\EHUHTXLUHG
7KRUDFRWRP\DQGOXQJUHVHFWLRQVKRXOGEHFRQVLGHUHG
(PS\HPD
(PS\HPD SXVZLWKLQ DERG\FDYLW\

/XQJHPS\HPDXVXDOO\RFFXUVVHFRQGDU\WRSQHXPRQLD
&ROOHFWLRQLVRIWHQPXOWLORFXODWHG
,IGLDJQRVLVLVGHOD\HGLWZLOODOVRKDYHDWKLFNILEURXVZDOO
$OVRVHHQIROORZLQJ
2HVRSKDJHDOSHUIRUDWLRQRUUXSWXUH
%OXQWRUSHQHWUDWLQJWKRUDFLFWUDXPD
1DVRSKDU\QJHDOVHSVLVWKDWKDVVSUHDGWRFKHVW
7KRUDFLFVXUJLFDOSURFHGXUHV
&OLQLFDOIHDWXUHV
8VXDOO\FOLQLFDOIHDWXUHVRISQHXPRQLDWKDWIDLOVWRLPSURYHZLWKDQWLELRWLFV
3OHXULWLFFKHVWSDLQDQGEUHDWKOHVVQHVV
([DPLQDWLRQPD\VKRZFOLQLFDOIHDWXUHVRISOHXUDOIOXLG
&KHVW[UD\ZLOOVKRZIOXLGZLWKLQWKHSOHXUDOFDYLW\
&7VFDQQLQJZLOOFRQILUPGLDJQRVLV
3HUFXWDQHRXVDVSLUDWLRQZLOOSURYLGHPLFURELRORJLFDOVDPSOHIRUFXOWXUH
0DQDJHPHQW
154
,QWHQVLYHFDUH
$SSURSULDWHDQWLELRWLFWKHUDS\EDVHGRQVSXWXPFXOWXUHUHVXOW
,IIDLOV WRUHVROYHZLOOUHTXLUHGUDLQDJH
3OHXUDOGUDLQDJHVKRXOGEHZLWKDGHTXDWH)UFKHVWGUDLQ
7KRUDFRVFRS\PD\EHUHTXLUHGWREUHDNGRZQORFXOL
'HFRUWLFDWLRQRIYLVFHUDODQGSDULHWDOSOHXUDPD\EHUHTXLUHGWRDOORZOXQJH[SDQVLRQ
3RVWRSHUDWLYHDGHTXDWHGUDLQDJHLVUHTXLUHG
3QHXPRWKRUD[LVQRWDULVNGXHWRUHVXOWLQJSOHXUDOVFDUULQJ
%LEOLRJUDSK\
+HIIQHU-(,QIHFWLRQVRIWKHSOHXUDOVSDFH&OLQ&KHVW0HG
5RZH6&KHDGOH:*&RPSOLFDWLRQVRIQRVRFRPLDOSQHXPRQLDLQVXUJLFDOSDWLHQ WV$P-6XUJ

6XSSO$66
155
,QWHQVLYHFDUH
3K\VLRORJLFDO6FRULQJV\VWHPV
$3$&+(,,VFRUH
$JHQHUDOPHDVXUHRIGLVHDVHVHYHULW\EDVHGRQ
&XUUHQWSK\VLRORJLFPHDVXUHPHQWV
$JH
3UHYLRXVKHDOWKFRQGLWLRQ
6FRUHVUDQJHIURPZLWKDQLQFUHDVLQJVFRUHDVVRFLDWHGZLWKDQLQFUHDVLQJULVNRIKRVSLWDO
GHDWK
$3$&+(,,VFRUH DFXWHSK\VLRORJ\VFRUHDJHSRLQWVFKURQLFKHDOWKSRLQWV
$FXWH3K\VLRORJ\6FRUH
5HFWDOWHPS&
0HDQDUWHULDOSUHVVXUHPP+J
+HDUWUDWHESP
5HVSLUDWRU\UDWHESP
2[\JHQGHOLYHU\POPLQ
32 PP+J
DUWHULDOS+
6HUXPVRGLXPPPROO
6HUXPSRWDVVLXPPPROO
6HUXPFUHDWLQLQHPJGO
+DHPDWRFULW

:KLWHFHOOFRXQW PO

!
!
!
!
!
!
!
!
!
!
!

!

$JH3RLQWV
$JH

!
3RLQWV

156
,QWHQVLYHFDUH
&KURQLF+HDOWK3RLQWV
+LVWRU\RIVHYHUHRUJDQ
LQVXIILFLHQF\
1RQRSHUDWLYHSDWLHQWV
(PHUJHQF\SRVWRSHUDWLYHSDWLHQWV
(OHFWLYHSRVWRSHUDWLYHSDWLHQWV
3RLQWV

2UJDQLQVXIILFLHQF\RULPPXQRFRPSURPLVHGVWDWHPXVWKDYHSUHFHGHGWKHFXUUHQWDGPLVVLRQ
,PPXQRFRPSURPLVHGLI
5HFHLYLQJWKHUDS\UHGXFLQJKRVWGHIHQFHVLPPXQRVXSSUHVVLRQFKHPRWKHUDS\ UDGLDWLRQ
WKHUDS\ORQJWHUPVWHURLGXVHKLJKGRVHVWHURLGWKHUDS\RU
+DVDGLVHDVHLQWHUIHULQJZLWKLPPXQHIXQFWLRQVXFKDVPDOLJQDQWO\PSKRPDRUOHXNDHPLD
+HSDWLFLQVXIILFLHQF\LI
%LRSV\SURYHQFLUUKRVLV
3RUWDOK\SHUWHQVLRQ
(SLVRGHVRIXSSHU*,EOHHGLQJGXHWRSRUWDOK\SHUWHQVLRQ
3ULRUHSLVRGHVRIKHSDWLFIDLOXUHFRPDRUHQFHSKDORSDWK\
&DUGLRYDVFXODULQVXIILFLHQF\LI
1HZ<RUN+HDUW$VVRFLDWLRQ&ODVV,9
5HVSLUDWRU\LQVXIILFLHQF\LI
6HYHUHH[HUFLVHUHVWULFWLRQ GXHWRFKURQLFUHVWULFWLYHREVWUXFWLYHRUYDVFXODUGLVHDVH
'RFXPHQWHGFKURQLFK\SR[LDK\SHUFDSQLDVHFRQGDU\SRO\F\WKDHPLDVHYHUHSXOPRQDU\
K\SHUWHQVLRQ
5HVSLUDWRUGHSHQGHQF\
5HQDOLQVXIILFLHQF\LI
2QFKURQLFGLDO\VLV
%LEOLRJUDSK\
.QDXV:$'UDSHU($HWDO$3$&+(,,$VHYHULW\RIGLVHDVHFODVVLILFDWLRQV\VWHP &ULWLFDO&DUH
0HGLFLQH
157
1HRSODVLD
1HRSODVLDWHFKQLTXHVDQGRXWFRPHRIVXUJHU\
3DWKRORJLFDOWHUPV
$WURSK\
$UHGXFWLRQLQRUJDQVL]HGXHWRDUHGXFWLRQLQVL]HRI LQGLYLGXDOFHOOV
HJ'XHWRLPPRELOLW\RUQXWULWLRQDOGHILFLHQF\
+\SHUSODVLD
$QLQFUHDVHLQRUJDQVL]HGXHWRDQFHOOSUROLIHUDWLRQ
HJ9HQWULFXODUK\SHUWURSK\GXHWRDRUWLFVWHQRVLV
+\SHUWURSK\
$QLQFUHDVHLQRUJDQVL]HGXHWRLQFUHDVHLQVL]HRILQGL YLGXDOFHOOV
HJ%UHDVWHQODUJHPHQWGXULQJSUHJQDQF\
0HWDSODVLD
$FKDQJHIURPRQHGLIIHUHQWLDWHGFHOOW\SHWRDQRWKHU
HJ%URQFKLDOVTXDPRXVPHWDSODVLDLQUHVSRQVHWRVPRNLQJ
%DUUHWW
VRHVRSKDJXV LQWHVWLQDOPHWDSODVLDDWWKHJDVWURRHVRSKDJHDOMXQFWLRQ
'\VSODVLD
'LVRUGHUHGFHOOXODUGHYHORSPHQW XVXDOO\SUHPDOLJQDQW
HJ&HUYLFDOLQWUDHSLWKHOLDOQHRSODVLD
158
1HRSODVLD
&OLQLFRSDWKRORJLFDOVWDJLQJRIFDQFHU
6WDJLQJLVWKHFOLQLFDORUSDWKRORJLFDODVVHVVPHQWRIWKHH[WHQWRIWXPRXUVSUHDG
&OLQLFDOVWDJLQJLVD SUHRSHUDWLYHDVVHVVPHQW
,WLVEDVHGRQFOLQLFDOUDGLRORJLFDODQGRSHUDWLYHLQIRUPDWLRQ
8VHGWRGHWHUPLQHWUHDWPHQWRIIHUHGWRWKHSDWLHQW
3DWKRORJLFDOVWDJLQJLVDSRVWRSHUDWLYHDVVHVVPHQW
3URYLGHVXVHIXOSURJQRVWLFLQIRUPDWLRQ
$OORZVGHFLVLRQVWREHPDGHUHJDUGLQJDGMXYDQWWKHUDS\
$OORZVFRPSDULVRQRIWUHDWPHQWRXWFRPHVEHWZHHQGLIIHUHQWFHQWUHV
6WDJLQJV\VWHPV
7KHLGHDOVWDJLQJV\VWHPVKRXOGEH
(DV\WRXVHDQGUHPHPEHU
5HSURGXFLEOH QRWVXEMHFWWRLQWHURULQWUDREVHUYHUYDULDWLRQ
%DVHGRQSURJQRVWLFDOO\LPSRUWDQWSDWKRORJLFDOIDFWRUV
710V\VWHP
%DVHGRQDQDWRPLFDOH[WHQWRIVSUHDG
7UHIHUVWRWKHH[WHQWRISULPDU\WXPRXU
1UHIHUVWRWKHH[WHQWRIQRGDOPHWDVWDVHV
0UHIHUVWRWKHSUHVHQFHRUDEVHQFHRIGLVWDQWPHWDVW DVHV
7 SULPDU\WXPRXU
7[ SULPDU\WXPRXUFDQQRWEHDVVHVVHG
7R QRHYLGHQFHRISULPDU\WXPRXU
7LV FDUFLQRPDLQVLWX
7 LQFUHDVLQJVL]HDQGORFDOH[WHQWRISULPDU\WXPRXU
1 UHJLRQDOO\PSKQRGHV
1[ UHJLRQDOO\PSKQRGHVFDQQRWEHDVVHVVHG
1 QRUHJLRQDOO\PSKQRGHPHWDVWDVHV
1 ,QFUHDVLQJLQYROYHPHQWRIUHJLRQDOO\PSKQRGHV
0 GLVWDQWPHWDVWDVHV
0[ GLVWDQWPHWDVWDVHVFDQQRWEHDVVHVVHG
0 1RGLVWDQWPHWDVWDVHV
0 'LVWDQWPHWDVWDVHVSUHVHQW
7KH710V\VWHPLVJHQHUDOO\DFFHSWHG
'RHVQRWUHFRUGHGDOOIDFWRUVHJJUDGHFRQWLJXRXVRUJDQLQYROYHPHQWWKDWLVSURJQRVWLFDOO\
LPSRUWDQW
'XNHVVWDJLQJRIFRORUHFWDOFDQFHU
)LUVWSXEOLVKHGLQIRUUHFWDOFDQFHUV
1RZXVHGIRUDOOUHFWDODQGFRORQLFFDQFHUV
'XNH
V$ VSUHDGLQWRVXEPXFRVDEXWQRWWKURXJKPXVFOH
'XNH
V% VSUHDGWKURXJKPXVFOHEXWQRGHVQHJDWLYH
'XNH
V& O\PSKQRGHPHWDVWDVHVSUHVHQW
2IWHQGLYLGHGLQWR& DQG& GHSHQGHQWRQWKHLQYROYHPHQWRIWKHKLJKHVWO\PSKQRGH
$GYDQWDJHVRIWKH'XNHV FODVVLILFDWLRQDUHWKDWLW
159
1HRSODVLD
,VVLPSOHDQGUHSURGXFLEOH
$FFXUDWHO\UHIOHFWVSURJQRVLV
$FFHSWHGQDWLRQDOO\DQGLQWHUQDWLRQDOO\
%LEOLRJUDSK\
160
1HRSODVLD
3ULQFLSOHVRIRQFRORJ\
5DGLRWKHUDS\
5DGLRWKHUDS\LVWKHXVHRILRQLVLQJUDGLDWLRQWRWUHDWPDOLJQDQF\
$WWHPSWVWRGHOLYHUDPHDVXUHGUDGLDWLRQGRHVWRGHILQHGWXPRXUYROXPH
1HHGWROLPLWGRVHWRVXUURXQGLQJQRUPDOWLVVXH
5DGLRWKHUDS\PD\EH
&XUDWLYHRUUDGLFDO
3DOOLDWLYH
$GMXYDQW
%UDFK\WKHUDS\LVWKHXVHRILQWUDFDYLW\LUUDGLDWLRQ
3K\VLFV
5DGLDWLRQPD\EHHOHFWURPDJQHWLFRUSDUWLFXODWH
/LQHDUDFFHOHUDWRUVXVHGWRJHQHUDWHKLJKHQHUJ\[UD\VHOHFWURPDJQHWLF
*HQHUDWHE\HOHFWURQVKLWWLQJDIL[HGWDUJHW
'HSWKRISHQHWUDWLRQGHSHQGRQ[UD\YROWDJH
.H9[UD\VDEVRUEHGE\VXSHUILFLDOWLVVXHV
09[UD\VDEVRUEHGLQGHHSHUWLVVXHV
8VHRI09[UD\VDYRLGVVLJQLILFDQWVNLQWR[LFLW\
+LJKHQHUJ\HOHFWURQVPD\EHXVHGLQVWHDGRI[UD\VSDUWLFXODWH
(OHFWURQVKDYHOLPLWHGWLVVXHSHQHWUDWLRQ
&7SODQQLQJUHGXFHVGRVHGHOLYHUHGWRQRUPDOWLVVXH
%LRORJ\
5DGLDWLRQGDPDJHV'1$
(LWKHUFDXVHVGLUHFWGDPDJHWR'1$RUDFWVYLDWKHSURGXFWLRQRIIUHHUDGLFDOV
'RXEOHVWUDQGHG'1$EUHDNVSUHYHQWVFHOOUHSOLFDWLRQDQGLQGXFHVFHOOGHDWK
7LVVXHUHVSRQVHGHSHQGVRQGHJUHHRIFHOOXODUGLIIHUHQWLDWLRQ
7HUPLQDOO\GLIIHUHQWLDWHGFHOOVHJPXVFOHDQGQHUYHVDUHUHVLVWDQWWRGDPDJH
0RVWVLJQLILFDQWHIIHFWVVHHQLQUDSLGO\GLYLGLQJFHOOVHJJXWERQHPDUURZ
7R[LFLW\
$FXWHWR[LFLW\
2FFXUVZLWKLQGD\V
'HSHQGVRQRYHUDOOWUHDWPHQWWLPH
,QFOXGHVPXFRVLWLVERQHPDUURZVXSSUHVVLRQVNLQUHDFWLRQV
/DWHWR[LFLW\
2FFXUVDIWHUZHHNVRUPRQWKV
'HSHQGVRQWRWDOGRVHDQGIUDFWLRQDWLRQ
,QFOXGHVWLVVXHQHFURVLVRUILEURVLV
)UDFWLRQDWLRQ
+LJKHUWRWDOGRVHRIUDGLDWLRQFDQEHJLYHQLIVPDOOHUUHSHDWHGGRVHVDGPLQL VWHUHG
$OORZVDGHJUHHRIUHSDLURIQRUPDOWLVVXHV
+LJKWRWDOGRVHLQFUHDVHVWKHSUREDELOLW\RIWXPRXUFRQWURO
+\SRIUDFWLRQDWLRQ VPDOOQXPEHURIODUJHGRVHV
$FFHOHUDWHGIUDFWLRQDWLRQ VWDQGDUGGRVHRYHUVKRUWLQWHUYDO
+\SHUIUDFWLRQDWLRQ ODUJHQXPEHURIVPDOOGRVHV
161
1HRSODVLD
&XUDWLYHDVVROHWUHDWPHQW
+HDGDQGQHFNFDQFHUV
&DUFLQRPDRIWKHFHUYL[
6HPLQRPDV
+RGJNLQ
VDQGQRQ+RGJNLQ
VO\PSKRPDV
%ODGGHUFDQFHU
(DUO\SURVWDWHFDQFHU
(DUO\OXQJFDQFHU
$QDODQGVNLQFDQFHU
0HGXOOREODVWRPDDQGRWKHUEUDLQWXPRXUV
7K\URLGFDQFHU
&RPSRQHQWRIPXOWLPRGDOLW\WKHUDS\
%UHDVWFDQFHU
5HFWDOFDQFHU
6RIWWLVVXHVDUFRPDV
$GYDQFHGKHDGDQGQHFNFDQFHUV
:KROHERG\';7EHIRUHERQHPDUURZWUDQVSODQWDWLRQ
3DOOLDWLYHUDGLRWKHUDS\
3DLQHVSHFLDOO\ERQHPHWDVWDVHV
6SLQDOFRUGFRPSUHVVLRQ
&HUHEUDOPHWDVWDVHV
9HQRXVRUO\PSKDWLFREVWUXFWLRQ
%LEOLRJUDSK\
6\PRQGV535DGLRWKHUDS\%U0HG-
162
1HRSODVLD
&KHPRWKHUDS\
$LPVRIFKHPRWKHUDS\DUHWRVHOHFWLYHO\GHVWUR\WXPRXUFHOOV
$FKLHYHGE\VSHFLILFJURZWKFKDUDFWHULVWLFVRIPRVWWXPRXUV
&HOOF\FOH
$FHOOVV\QWKHVLVLQJ'1$JRWKURXJKDUHJXODUF\FOHZLWKGLIIHUHQWSKDVHV
)LJXUH 7KHFHOOF\FOH
* LVDUHVWLQJSKDVHRXWVLGHWKHFHOOF\FOH
&HOOVLV* DUHUHVLVWDQWWRWKHHIIHFWVRI F\WRWR[LFGUXJV
0HFKDQLVPRIDFWLRQ
7KHIDVWHUFHOOVDUHJURZLQJWKHPRUHOLNHO\WKDWF\WRWR[LFGUXJVDUHWR
FDWFK
WKHP
$OVRDFFRXQWVIRUWR[LFLW\RQUDSLGO\JURZLQJQRUPDOWLVVXHVHJ*,PXFRVDERQHPDUURZ
/DUJHWXPRXUVDUHUHODWLYHO\XQUHVSRQVLYHWRFKHPRWKHUDS\
0RUHFHOOVDUHLQ* DQGGUXJSHQHWUDWLRQLVOHVVUHOLDEOH
0RVWGUXJVNLOODIL[HGSURSRUWLRQRIFHOOVUDWKHUWKDQIL[HGQXPEHU
'LIIHUHQWGUXJVDFWDWGLIIHUHQWSKDVHVRIWKHFHOOF\FOH
$VDUHVXOWFRPELQDWLRQVRIGUXJVDUHPRUHOLNHO\WR EHHIIHFWLYH
0RGHVRIDFWLRQLQFOXGH
%OHRP\FLQ LQKLELWV'1$SRO\PHUDVHFDXVLQJEUHDNDJHRIVLQJOHVWUDQGHG'1$
'R[RUXELFLQ ,QKLELWV51$V\QWKHVLVE\LQWHUFDODWLQJEHWZHHQ'1$EDVHSDLUV
&LVSODWLQ LQKLELWV'1$V\QWKHVLVE\FURVVOLQNLQJ'1$VWUDQGV
0HWKRWUH[DWH LQKLELWVGLK\GURIRODWHUHGXFWDVH
9LQFDDONDORLGV ELQGVWRWXEXOLQDQGLQKLELWVWKHPHWDSKDVHRIPLWRVLV
1RQSKDVHGHSHQGHQWGUXJV
.LOOFHOOVH[SRQHQWLDOO\ZLWKLQFUHDVLQJGRVH
(TXDOO\WR[LFIRUFHOOZLWKLQWKHFHOOF\FOHRU* SKDVH
([DPSOHVLQFOXGH
$ON\ODWLQJDJHQWV F\FORSKRVSKDPLGHFLVSODWLQ
)OXURXUDFLO
$QWKUDF\FOLQHV GR[RUXELFLQ
163
1HRSODVLD
3KDVHGHSHQGHQWGUXJV
.LOOFHOOVDWDORZHUGRVH
$FWZLWKLQDVSHFLILFSKDVHRIWKHFHOOF\FOH
([DPSOHVLQFOXGH
0HWKRWUH[DWH
9LQFDDONDORLGV YLQFULVWLQHYLQEODVWLQH
*HQHUDOVLGHHIIHFWV
6RPHVLGHHIIHFWVRFFXUZLWKPDQ\F\WRWR[LFDJHQWV
7KHVHLQFOXGH
1DXVHDDQGYRPLWLQJ
%RQHPDUURZWR[LFLW\
*DVWURLQWHVWLQDOWR[LFLW\
$ORSHFLD
*RQDGDOHIIHFWV
+\SHUXULFDHPLD
6SHFLILFVLGHHIIHFWV
6RPHVLGHHIIHFWVDUHVSHFLILFWRFHUWDLQDJHQWV
7KHVHLQFOXGH
3XOPRQDU\ILEURVLV EOHRP\FLQ
+DHPRUUKDJLFF\VWLWLV F\FORSKRVSKDPLGH
&DUGLRP\RSDWK\ GR[RUXELFLQ
+HSDWLFGDPDJH PHWKRWUH[DWH
6NLQSLJPHQWDWLRQ IOXURXUDFLO
7XPRXUVSRWHQWLDOO\FXUDEOHZLWKFKHPRWKHUDS\
$FXWHO\PSKREODVWLFOHXNDHPLD
*HUPFHOOWXPRXUV
&KRULRFDUFLQRPD
+RGJNLQ
VGLVHDVH
:LOP
VWXPRXU
7XPRXUVZLWKDVLJQLILFDQWUHVSRQVHWRFKHPRWKHUDS\
%UHDVWFDUFLQRPD
2YDULDQFDUFLQRPD
/\PSKRPD
2VWHRVDUFRPD
7XPRXUVSRRUO\UHVSRQVLYHWRFKHPRWKHUDS\
3DQFUHDWLFFDUFLQRPD
0HODQRPD
6RIWWLVVXHVDUFRPDV
&RORUHFWDOFDUFLQRPD
*DVWULFFDUFLQRPD
%LEOLRJUDSK\
164
1HRSODVLD
&DQFHUJHQHWLFV
6HYHUDOJHUPOLQHPXWDWLRQVKDYHEHHQVKRZQWRLQFUHDVHFDQFHUULVN
0RUHWKDQJHQHWLFDEQRUPDOLWLHVKDYHEHHQLGHQWLILHG
0RVWDUHLQKHULWHGLQDXWRVRPDOGRPLQDQWIDVKLRQ
&DQFHUJHQHWLFVDUHLPSRUWDQWDV
*HQHVLQYROYHGDUHLPSRUWDQWLQQRUPDOJURZWKDQGGHYHORSPHQW
,PSURYHRXUNQRZOHGJHRIFDQFHUELRORJ\
$OORZLGHQWLILFDWLRQRIKLJKULVNSDWLHQWVZKRZLOOEHQHILWIURPSUHYHQWDWLYHWKHUDSLHV
0RVWJHQHWLFDEQRUPDOLWLHVLQYROYHWXPRXUVXSSUHVVRUJHQHV
&RGHIRUSURWHLQVWKDWDUHLPSRUWDQWLQQRUPDOJURZWKDQGGHYHORSPHQW
+HUHGLWDU\FDQFHUV\QGURPHVUHVXOWIURPJHUPOLQHPXWDWLRQLQRQHFRS\RIWKHVXSSUHVVRUJHQH
6RPDWLFPXWDWLRQLQWKHVHFRQGFRS\RIWKHJHQHUHVXOWVLQWKHGHYHORSPHQWRIFDQFHU
%UHDVWFDQFHUJHQHWLFV
ZRPHQZLOOGHYHORSEUHDVWFDQFHULQWKHLUOLIHWLPH
EUHDVWDQGRYDULDQFDQFHUVGXHWRJHUPOLQHPXWDWLRQ
%5&$DQG%5&$JHQHV
%5&$DQG%5&$DUHWXPRXUVXSSUHVVRUJHQHV
&RPPRQHVWDEQRUPDOLW\LVLQ%5&$JHQHIRXQGRQORQJDUPRIFKURPRVRPH
0XWDWLRQVHHQLQRIIDPLOLHVZLWKRUPRUHDIIHFWHGPHPEHUV\HDUV
0RUHWKDQ%5&$PXWDWLRQVGHVFULEHG
+LJKHVWFDUULHUUDWHLVLQ$VKNHQD]L-HZV
,IDSDWLHQWLV%5&$SRVLWLYHVKHKDV
ULVNRIGHYHORSLQJEUHDVWFDQFHUE\\HDUV
ULVNRI GHYHORSLQJFRQWUDODWHUDOEUHDVWFDQFHU
OLIHWLPHULVNRIGHYHORSLQJRYDULDQFDQFHU
7UHDWPHQW
+RZVKRXOG%5&$DQG%5&$SRVLWLYHSDWLHQWVEHPDQDJHG"
3RVVLEOHRSWLRQVLQFOXGH
,QWHQVLYHVFUHHQLQJZLWKDQQXDOPDPPRJUDSK\IURPDQHDUO\DJH
&KHPRSURSK\OD[LVZLWKWDPR[LIHQ
3URSK\ODFWLFPDVWHFWRP\
5HGXFHVEXWGRHVQRWFRPSOHWHO\DEROLVKULVNRIEUHDVWFDQFHU
%LEOLRJUDSK\
(PHU\- /XFDVVHQ$ 0XUSK\0 &RPPRQKHUHGLWDU\FDQFHUVDQGLPSOLFDWLRQVIRUSULPDU\FDUH /DQFHW

7D\ORU05**HQHWLFWHVWLQJIRULQKHULWHGEUHDVWDQGRYDULDQFDQFHUV\QGURPHVLPSRUWDQWFRQFHSWVIRU
WKHSULPDU\FDUHSK\VLFLDQ3RVWJUDG0HG-
165
1HRSODVLD
$VVHVVPHQWRIEUHDVWGLVHDVH
6\PSWRPVWKDWPD\LQGLFDWHEUHDVWFDQFHU
%UHDVWOXPS
%UHDVWSDLQ
&KDQJHLQWKHVL]HRUVKDSHRIWKHEUHDVW
6ZHOOLQJRIWKHDUPO\PSKRHGHPD
'LPSOLQJRIWKHEUHDVWVNLQ
,QYROXWLRQRULQYHUVLRQRIWKHQLSSOH
$[LOODU\O\PSKDGHQRSDWK\
1LSSOHGLVFKDUJHRUEOHHGLQJ
8OFHUDWLRQRIWKHEUHDVWVNLQ
%RQHRUDEGRPLQDOSDLQMDXQGLFH
6\PSWRPVUHTXLULQJVSHFLDOLVWUHIHUUDO
/XPSV
$OOQHZGLVFUHWHEUHDVWOXPSV
$QHZOXPSLQSUHH[LVWLQJQRGXODULW\
$V\PPHWULFDOQRGXODULW\SHUVLVWLQJDIWHUPHQVWUXDWLRQ
%UHDVWDEVFHVV
3HUVLVWHQWO\UHILOOLQJRUUHFXUUHQWF\VWV
$[LOODU\O\PSKDGHQRSDWK\
%UHDVWSDLQ
3DLQDVVRFLDWHGZLWKDOXPS
3HUVLVWHQWXQLODWHUDOSDLQLQDSRVWPHQRSDXVDOZRPDQ
1LSSOHGLVFKDUJH
$OOZRPHQDJHGRYHU\HDUV
:RPHQDJHGEHORZ\HDUVZLWK
%LODWHUDOGLVFKDUJHVXIILFLHQWWRVWDLQFORWKHV
%ORRGVWDLQHGQLSSOHGLVFKDUJH
3HUVLVWHQWGLVFKDUJHIURPDVLQJOHGXFW
)DPLO\KLVWRU\
7ULSOHDVVHVVPHQW
7ULSOHDVVHVVPHQWFRPSULVHVRI
&OLQLFDOH[DPLQDWLRQ
$UDGLRORJLFDODVVHVVPHQW PDPPRJUDSK\RUXOWUDVRXQG
$SDWKRORJLFDODVVHVVPHQW F\WRORJ\RUELRSV\
166
1HRSODVLD
%UHDVWLPDJLQJ
7KHEUHDVWFDQEHLPDJHGZLWKPDPPRJUDSK\XOWUDVRXQGRU05,
0DPPRJUDSK\LVWKHPRVWVHQVLWLYHRIEUHDVWLPDJLQJPRGDOLWLHV
6HQVLWLYLW\LVUHGXFHGLQ\RXQJZRPHQGXHWRWKHSUHVHQFHRILQFUHDVHGJODQGXODUWLVVXH
)RUV\PSWRPDWLFSDWLHQWVLPDJLQJDOZD\VEHSHUIRUPHGDVSDUWRIWULSOHDVVHVVPHQW
0DPPRJUDSK\
$EQRUPDOLWLHVGHWHFWHGRQPDPPRJUDSK\DUHFODVVLILHGDV
6SLFXODWHGPDVVHV
6WHOODWHOHVLRQV
&LUFXPVFULEHGPDVVHV
0LFURFDOFLILFDWLRQ
6SLFXODWHGPDVVHV
6RIWWLVVXHPDVVZLWKVSLFXOHVH[WHQGLQJLQWRVXUURXQGLQJWLVVXH
RIVSLFXODWHGPDVVHVDUHGXHWRLQYDVLYHFDQFHU
2WKHUFDXVHVRIVSLFXODWHGPDVVHVLQFOXGH
'XFWDOFDUFLQRPDLQVLWX'&,6
5DGLDOVFDUFRPSOH[VFOHURVLQJOHVLRQ
)DWQHFURVLV
)LEURPDWRVLV
*UDQXODUFHOOP\REODVWRPD
6WHOODWHOHVLRQV
/RFDOLVHGGLVWRUWLRQRIWKHEUHDVWSDUHQFK\PDZLWKQRSHUFHSWLEOHPDVVOHVLRQ
'LIIHUHQWLDOGLDJQRVLVRIVWHOODWHOHVLRQVLQFOXGHV
5DGLDOVFDU
,QYDVLYHFDQFHU
'&,6
6XUJLFDOVFDU
&LUFXPVFULEHGPDVVHV
&LUFXPVFULEHGPDVVHVVKRXOGEHDQDO\VHGDFFRUGLQJWRGHQVLW\RXWOLQHDQGVL]H
'LIIHUHQWLDOGLDJQRVLVRIFLUFXPVFULEHGPDVVHVLQFOXGHV
)LEURDGHQRPD
&\VW
0XFLQRXVRUPHGXOODU\FDUFLQRPD
/LSRPD
$EVFHVV
0LFURFDOFLILFDWLRQ
0LFURFDOFLILFDWLRQLVGXHWRGHEULVZLWKLQWKHGXFWZDOORUOXPHQ
6ROHIHDWXUHRIRIVFUHHQGHWHFWHGFDQFHUV
0DOLJQDQWPLFURFDOFLILFDWLRQLVXVXDOO\OLQHDURUEUDQFKLQJ
%HQLJQPLFURFDOFLILFDWLRQLVXVXDOO\URXQGHGDQGSXQFWDWH
'LIIHUHQWLDOGLDJQRVLVRIPLFURFDOFLILFDWLRQLQFOXGHV
'&,6
,QYDVLYHFDQFHU
3DSLOORPD
)LEURDGHQRPD
)DWQHFURVLV
167
1HRSODVLD
%UHDVWXOWUDVRXQG
8OWUDVRXQGLVXVHIXOLQWKHDVVHVVPHQWRIEUHDVWOXPSV
&RPSOHPHQWVPDPPRJUDSK\DQGLVDEOHWRGLIIHUHQWLDWHVROLGDQGF\VWLFOHVLRQV
$OVRDEOHWRJXLGHILQHQHHGOHDVSLUDWLRQDQGFRUHELRSVLHV
&DQEHXVHGWRDVVHVVWXPRXUVL]HDQGUHVSRQVHWRWKHUDS\
,QWKHGLDJQRVLVRIPDOLJQDQF\LWKDVDVHQVLWLYLW\DQGVSHFLILFLW\RIDQGUHV SHFWLYHO\
&\VWVDQGVROLGOHVLRQVKDYHW\SLFDODSSHDUDQFHV
&\VWV
2QXOWUDVRXQGH[DPLQDWLRQF\VWVKDYH
6PRRWKZDOOV
6KDUSDQWHULRUDQGSRVWHULRUERUGHUV
%ODFNK\SRHFKRLFFHQWUHVZLWKRXWLQWHUQDOHFKRHV
6ROLGOHVLRQV
6ROLGOHVLRQVKDYHLQWHUQDOHFKRHV
0DOLJQDQWWXPRXUVKDYH
+\SRHFKRLFDUHDVLQWHUVSHUVHGEHWZHHQEULJKWHUHFKRHV
,UUHJXODUHGJHV
&DVWK\SRHFKRLFVKDGRZV
%HQLJQWXPRXUVKDYH
,VRHFKRLFRUK\SRHFKRLFSDWWHUQV
6PRRWKZHOOGHILQHGERUGHUV
FDVWQRK\SRHFKRLFVKDGRZV
%LEOLRJUDSK\
%DVVHWW/:,PDJLQJRIEUHDVWPDVVHV5DGLRO&OLQ1RUWK$P
+XUG7&(GJH6%%UHDVWFDQFHULPDJLQJ6XUJ&OLQ1RUWK$P
2UHO6*05LPDJLQJRIWKHEUHDVW5DGLRO&OLQ1RUWK$P
6YHQVVRQ:(7KHYDOXHRIXOWUDVRXQGVFDQQLQJLQEUHDVWGLVHDVH +RVS0HG
168
1HRSODVLD
%HQLJQEUHDVWGLVHDVH
%UHDVWDQDWRP\
)LJXUH %UHDVWDQDWRP\
&ODVVLILFDWLRQRI%HQLJQ%UHDVW'LVHDVH
3K\VLRORJLFDO
VWDWHRIEUHDVW
'HYHORSPHQW
1RUPDO
%HQLJQ'LVRUGHU
&\FOLFDOFKDQJH
+RUPRQDODFWLYLW\
0DVWDOJLDDQGQRGXODULW\
(SLWKHOLDO
DFWLYLW\
3UHJQDQF\DQG
ODFWDWLRQ
/DFWDWLRQ
,QYROXWLRQ
/REXODU
LQYROXWLRQ
'XFWGHYHORSPHQW
/REXODUGHYHORSPHQW
6WURPDOGHYHORSPHQW
%HQLJQSDSLOORPD
1LSSOHLQYHUVLRQ
)LEURDGHQRPD
$GROHVFHQW+\SHUWURSK\
(SLWKHOLDOK\SHUSODVLD
%ORRGVWDLQHGGLVFKDUJH
'XFWDOLQYROXWLRQ
'XFWHFWDVLD
QLSSOHUHWUDFWLRQ
*DODFWRFHOH
&\VWV
6FOHURVLQJDGHQRVLV
,QYROXWLRQDOHSLWKHOLDO
K\SHUSODVLD
+\SHUSODVLD
0LFURSDSLOORPDWRVLV
%HQLJQ'LVHDVH
0DPPDU\)LVWXOD
*LDQW)LEURDGHQRPD
3HULGXFWDOPDVWLWLV
/REXODUDQGGXFWDO
K\SHUSODVLDZLWK
DW\SLD
169
1HRSODVLD
%UHDVWSDLQ
&RPPRQHVWUHDVRQIRUUHIHUUDOWREUHDVWFOLQLFV
$FFRXQWVIRURIDOOUHIHUUDOV
2QO\RISDWLHQWVZLWKEUHDVWFDQFHUUHSRUWEUHDVWSDLQ
$VVHVVPHQWUHTXLUHVWKHNHHSLQJRIDEUHDVWSDLQFKDUW
'LYLGHGLQWRF\FOLFDODQGQRQF\FOLFDOPDVWDOJLD
&\FOLFDOPDVWDOJLD
8VXDOO\ELODWHUDODIIHFWVXSSHURXWHUTXDGUDQW
0RVWO\PLQRUDQGDFFHSWHGE\PDQ\ZRPHQDV
SDUWRIQRUPDOOLIH
$YHUDJHDJHRIRQVHWLV\HDUV
1RFRQVLVWHQWKRUPRQDODEQRUPDOLW\
3URODFWLQOHYHOVPD\EHLQFUHDVHG
(VVHQWLDOIDWW\DFLGSURILOHVPD\EHDEQRUPDO
1RHYLGHQFHRISV\FKRSDWKRORJ\
,QWKRVHZLWKQRSDOSDEOHPDVVQRLPDJLQJLVUHTXLUHG
7UHDWPHQW
UHTXLUHQRWUHDWPHQWRWKHUWKDQUHDVVXUDQFH
7UHDWPHQWVKRXOGEHFRQVLGHUHGLIV\PSWRPV!PRQWKVIRU!GD\VSHUF\FOH
(YHQLQJSULPURVHRLO(32
5HTXLUHWUHDWPHQWIRUDWOHDVWPRQWKV
UHVSRQVHUDWH
FRPSOLFDWLRQV QDXVHD
'DQD]RO
UHVSRQVHUDWH
FRPSOLFDWLRQV DFQHZHLJKWJDLQKLUVXLWLVP
5HTXLUHVPHFKDQLFDOFRQWUDFHSWLRQ
%URPRFULSWLQH
UHVSRQVHUDWH
FRPSOLFDWLRQV SRVWXUDOK\SRWHQVLRQ
7DPR[LIHQHIIHFWLYHEXWQRWOLFHQVHGIRUXVHLQPDVWDOJLD
'LXUHWLFVRUSURJHVWRJHQVDUHQRWDGYLVHG
1RQF\FOLFDOPDVWDOJLD
8VXDOO\DIIHFWVROGHUZRPHQ
$YHUDJHDJH \UV
8VXDOO\XQLODWHUDORIWHQORFDOLVHG
$HWLRORJ\
7UXHQRQF\FOLFDOPDVWDOJLD
2IWHQKDVDPXVFXORVNHOHWDOFDXVH
5DUHO\FDQFHU
7UHDWPHQW
6XSSRUWEUD 16$,'
170
1HRSODVLD
%LEOLRJUDSK\
0DQVHO5(%UHDVWSDLQ %U0HG-
0DQVHO5()HQQ1-'DYLHV(/%HQLJQEUHDVWGLVHDVHDQGLWVPDQDJHPHQW,Q-RKQVRQ&'
7D\ORU,HGV5HFHQW DGYDQFHVLQVXUJHU\&KXUFKLOO/LYLQJVWRQH
0DQVHO5(6LQJKDO+'HYHORSPHQWDODEQRUPDOLWLHVDQGEHQLJQEUHDVWGLVHDVH,Q)DUQGRQ-5HG
%UHDVWDQG(QGRFULQH6XUJHU\ 6DXQGHUV/RQGRQ
171
1HRSODVLD
)LEURDGHQRPDV
)LEURDGHQRPDVDUHGHULYHGIURPWKHEUHDVWOREXOH
7KH\KDYHERWKHSLWKHOLDODQGFRQQHFWLYHWLVVXHHOHPHQWV
7KHLUSDWKRJHQHVLVLVXQFOHDU
7KH\DUHQRWWUXHQHRSODVPVEHLQJSRO\FORQDOUDWKHUWKDQPRQFORQDO
6KRXOGEHFRQVLGHUHGDVDQ
$EHUUDWLRQRI1RU PDO'HYHORSPHQWDQG,QYROXWLRQ
6LPSOHILEURDGHQRPD
0RVWDUHVPRRWKRUVOLJKWO\OREXODWHG
8VXDOO\FPLQGLDPHWHU
8VXDOO\SUHVHQWEHWZHHQ \UV
'HFUHDVHLQFLGHQFHDSSURDFKLQJWKHPHQRSDXVH
0D\SUHVHQWKDV
KDUG
FDOFLILHGPDVVLQWKHHOGHUO\
$SSUR[LPDWHO\RIILEURDGHQRPDVDUHPXOWLSOH
'LDJQRVHGE\WULSOHDVVHVVPHQW
5HFHQWLPSURYHGXQGHUVWDQGLQJRIQDWXUDOKLVWRU\
2YHU\HDUSHULRG
LQFUHDVHLQVL]H
UHPDLQVWDEOH
GHFUHDVHLQVL]H
5LVNRIPDOLJQDQWWUDQVIRUPDWLRQLVDSSUR[LPDWHO\LQ
5HVXOWLQJFDUFLQRPDLVRIWHQDOREXODUFDUFLQRPD
7UHDWPHQW
/HVVWKDQ\HDUV REVHUYH
\HDUV RIIHUFRQVHUYDWLYHWUHDWPHQW
0RUHWKDQ\HDUV H[FLVLRQELRSV\
([FLVHDWDQ\DJHLISDWLHQWUHTXHVWV
*LDQWILEURDGHQRPD
%LPRGDODJHSUHVHQWDWLRQ WHHQV SUHPHQRSDXVDO

0RUHFRPPRQLQEODFN2ULHQWDOV
5DSLGO\JURZWRDODUJHVL]H
3UHVHQWZLWKSDLQEUHDVWHQODUJHPHQWQLSSOHGLVSODFHPHQW
&KDUDFWHULVWLFVKLQ\VNLQFKDQJHVZLWKGLODWHGYHLQV
(QXFOHDWHWKURXJKFRVPHWLFDOO\VLWHGVFDU
5HVXOWLQJEUHDVWGLVWRUWLRQLVXVXDOO\VHOIFRUUHFWLQJ
1RHYLGHQFHWKDWWKHVHWXPRXUVUHFXU
3K\OORGHVWXPRXU
2FFXULQSUHPHQRSDXVDOZRPHQ
:LGHVSHFWUXPRIDFWLYLW\
9DU\IURPEHQLJQWRORFDOO\DJJUHVVLYH
+DYHFHOOXODUILEURXVHOHPHQW
([FLVHZLWKFPPDUJLQRIQRUPDOWLVVXH
5HH[FLVLRQRUPDVWHFWRP\IRUORFDOUHFXUUHQFH
%LEOLRJUDSK\
$OOH.00RVV-9HQHJDV5-.KDONKDOL,.OHLQ65&RQVHUYDWLYHPDQDJHPHQWRIILEURDGHQRPDRI
WKHEUHDVW %U-6XUJ
172
1HRSODVLD
&DUW\1-&DUWHU&5XELQ&5DYLFKDQGUDQ'5R\OH*77D\ORU,0DQDJHPHQWRIILEURDGHQRPDRIWKH
EUHDVW$QQ5&ROO6XUJ(QJ
'L[RQ-0'RELH9/DPE-:DOVK-6&KHWW\8$VVHVVPHQWRIWKHDFFHSWDELOLW\RIFRQVHUYDWLYH
PDQDJHPHQWRIILEURDGHQRPDRIWKHEUHDVW %U-6XUJ
+LQGOH:+$ORQ]R/-&RQVHUYDWLYHPDQDJHPHQWRIEUHDVWILEURDGHQRPDV $P-2EVWHW*\QHFRO

+RXVVDPL1&KHXQJ01'L[RQ-0)LEURDGHQRPDRIWKHEUHDVW 0HG-$XVW

3DUNHU6-+DUULHV6$3K\OORGHV7XPRXU 3RVWJUDG0HG-
173
1HRSODVLD
%UHDVWF\VWV
ZRPHQGHYHORSFOLQLFDOO\SDOSDEOHF\VWV
8VXDOO\SHULPHQRSDXVDO\HDUV
2IWHQVLQJXODUDSSHDUVXGGHQO\IUHTXHQWO\SDLQIXO
7UHDWPHQW 6LPSOHDVSLUDWLRQ
&\WRORJ\LIEORRGVWDLQHGDVSLUDWH
([FLVHLI
5HFXUUDSLGO\RUUHSHDWHGO\
5HVLGXDOOXPSDIWHUDVSLUDWLRQ
7DEOH %UHDVWF\VWSDWKRORJ\
/LQLQJ(SLWKHOLXP
1D.UDWLR
S+
7HQGHQF\WRUHFXU
$VVRFLDWLRQZLWKFDQFHU
6LPSOH
6LPSOHFXERLGDO
!

/RZ
1RWSURYHQ
$SRFULQH
$SRFULQH

!
0RGHUDWH
3RVVLEOH
5HODWLRQVKLSEHWZHHQEHQLJQDQGPDOLJQDQWEUHDVWGLVHDVH
1RLQFUHDVHGULVN
6FOHURVLQJDGHQRVLV
$SRFULQHFKDQJH
'XFWHFWDVLD
0LOGK\SHUSODVLD
)LEURDGHQRPD
&\VWV
$SRFULQHPHWDSODVLD
6OLJKWLQFUHDVHGULVN [
0RGHUDWHRUIORULGK\SHUSODVLD
3DSLOORPDZLWKILEURYDVFXODUFRUH
0RGHUDWHLQFUHDVHGULVN [
$W\SLFDOGXFWDOK\SHUSODVLD
$W\SLFDOOREXODUK\SHUSODVLD
+LJKULVN [
'XFWDOFDUFLQRPDLQVLWX
/REXODUFDUFLQRPDLQVLWX
%LEOLRJUDSK\
'L[RQ-0%UHDVW&\VWV&XUU6XUJ3UDFW
174
1HRSODVLD
%UHDVW,QIHFWLRQV
/DFWDWLRQDOEUHDVWDEVFHVV
8VXDOO\GXHWR6WDSKDXUHXV
8VXDOO\SHULSKHUDOO\VLWXDWHG
6XUJHU\PD\EHSUHHPSWHGE\HDUO\GLDJQRVLV
$WWHPSWDVSLUDWLRQ
,IQRSXV DQWLELRWLFV
,ISXVFRQVLGHUUHSHDWHGDVSLUDWLRQRULQFLVLRQDQGGUDLQDJH
&RQVLGHUELRSV\RIFDYLW\ZDOO
&RQWLQXHEUHDVWIHHGLQJIURPRSSRVLWHEUHDVW
1RQHHGWRVXSSUHVVODFWDWLRQ
1RQODFWDWLRQDOEUHDVWDEVFHVV
2FFXULQSHULDUHRODUWLVVXH
&XOWXUH\LHOG %DFWHURLGHVDQDHURELFVWUHSHQWHURFRFFL
8VXDOO\PDQLIHVWDWLRQRIGXFWHFWDVLDSHULGXFWDOPDVWLWLV
2FFXU \HDUV
0RUHFRPPRQLQVPRNHUV
2IWHQJLYHKLVWRU\RIUHFXUUHQWEUHDVWVHSVLV
5HSHDWHGDVSLUDWLRQLVWKHWUHDWPHQWRIFKRLFH
0HWURQLGD]ROHDQGIOXFOR[DFLOOLQ
'UDLQWKURXJKVPDOOLQFLVLRQLIQRQUHVROYLQJ
'HILQLWLYHWUHDWPHQWZKHQTXLHVFHQWZLWKDQWLELRWLFSURSK\OD[LV
8VXDOO\DPDMRUGXFWH[FLVLRQ $GDLU
VRSHUDWLRQ
6SRQWDQHRXVGLVFKDUJHRUVXUJLFDOH[FLVLRQFDQUHVXOWLQPDPPDU\ILVWXOD
%LEOLRJUDSK\
'L[RQ-0%UHDVW,QIHFWLRQ%U0HG-
175
1HRSODVLD
*\QDHFRPDVWLD
&RPPRQHVWFRQGLWLRQDIIHFWLQJPDOHEUHDVW
'XHWRHQODUJHPHQWRIERWKGXFWDODQGVWURPDOWLVVXH
,WLVEHQLJQDQGRIWHQUHYHUVLEOH
0RVWFDVHVDUHLGLRSDWKLF
3K\VLRORJLFDOFDXVHVDUHGXHWRUHODWLYHRHVWURJHQH[FHVV
8VXDOO\SUHVHQWVDVXQLODWHUDOQRQWHQGHUEUHDVWHQODUJHPHQW
$HWLRORJ\
3K\VLRORJLFDOFDXVHV
1HRQDWDO
3XEHUW\
6HQLOH
3DWKRORJLFDOFDXVHV
3ULPDU\7HVWLFXODU)DLOXUH
$QRUFKLD
.OLQHIHOWHU
V6\QGURPH
%LODWHUDOFU\SWRUFKLGLVP
$FTXLUHG7HVWLFXODU)DLOXUH
0XPSV
,UUDGLDWLRQ
6HFRQGDU\7HVWLFXODU)DLOXUH
*HQHUDOLVHGK\SRSLWXLWDULVP
,VRODWHGJRQDGRWURSKLQGHILFLHQF\
(QGRFULQH7XPRXUV
7HVWLFXODU
$GUHQDO
3LWXLWDU\
176
1HRSODVLD
1RQ(QGRFULQH7XPRXUV
%URQFKLDOFDUFLQRPD
/\PSKRPD
+\SHUQHSKURPD
+HSDWLF'LVHDVH
&LUUKRVLV
+DHPRFKURPDWRVLV
'UXJV
2HVWURJHQVDQGRHVWURJHQDJRQLVWV GLJR[LQVSLURQRODFWRQH
+\SHUSURODFWLQDHPLD PHWK\OGRSDSKHQRWKLD]LQHV
*RQDGRWURSKLQV
7HVWRVWHURQHWDUJHWFHOOLQKLELWRUV FLPHWLGLQHF\SURWHURQH$FHWDWH
7UHDWPHQW
5HDVVXUDQFHWKDWLWLVDEHQLJQDQGVHOIOLPLWLQJFRQGLWLRQ
7UHDWPHQWRIDQ\XQGHUO\LQJFDXVH
,ISDLQIXORUHPEDUUDVVLQJFRQVLGHUVXEFXWDQHRXVPDVWHFWRP\
3HUIRUPHGWKURXJKFLUFXPDUHRODULQFLVLRQ
%LEOLRJUDSK\
&RORPER%HQNPDQQ0 %XVH% 6WHUQ- +HUIDUWK& ,QGLFDWLRQVIRUDQGUHVXOWVRIVXUJLFDOWKHUDS\IRU

PDOHJ\QHFRPDVWLD $P-6XUJ
*DVSHURQL& 6DOJDUHOOR0 *DVSHURQL3 7HFKQLFDOUHILQHPHQWVLQWKHVXUJLFDOWUHDWPHQWRI
J\QDHFRPDVWLD $QQ3ODVW6XUJ
*ODVV$5*\QHFRPDVWLD(QGRFULQRO0HWDE&OLQ1RUWK$P
:LOOLDPV7*'DZVRQ30*\QDHFRPDVWLD SUHVHQWDWLRQDHWLRORJ\DQGPDQDJHPHQW&XUUHQW 3UDFWLFH

LQ6XUJHU\
177
1HRSODVLD
%UHDVWFDQFHU
%UHDVWFDQFHUDIIHFWVZRPHQ
,Q8QLWHG.LQJGRPWKHUHDUHQHZFDVHVDQGGHDWKVDQQXDOO\
,WLVWKHFRPPRQHVWFDXVHRIFDQFHUGHDWKLQZRPHQ
,WDFFRXQWVIRURIDOOIHPDOHGHDWKV
%ULWDLQKDVKLJKHVWEUHDVWFDQFHUPRUWDOLW\LQWKHZRUOG
:+2&ODVVLILFDWLRQ
(SLWKHOLDO
1RQLQYDVLYH
'XFWDOFDUFLQRPDLQVLWX'&,6
/REXODUFDUFLQRPDLQVLWX/&,6
,QYDVLYH
'XFWDO
/REXODU
0XFLQRXV
3DSLOODU\
0HGXOODU\
0L[HG&RQQHFWLYHWLVVXHDQG(SLWKHOLDO
'LDJQRVLVDQGDVVHVVPHQW
0RVWV\PSWRPDWLFFDQFHUVSUHVHQWDVDSDLQOHVVOXPS
%UHDVWSDLQLVDQXQFRPPRQSUHVHQWDWLRQRIEUHDVWFDQFHU
'LDJQRVLVLVE\7ULSOH$VVHVVPHQW
&OLQLFDO(YDOXDWLRQ /XPSDQGUHJLRQDOQRGHV
,PDJLQJXOWUDVRXQG\HDUVROGRUPDPPRJUDSK\!\HDUVROG
&\WRORJ\RU+LVWRORJ\
&\WRORJ\LVUHSRUWHGDV
& ,QDGHTXDWHVDPSOH
& 'HILQLWHO\EHQLJQ
& 3UREDEO\EHQLJQ
& 6XVSLFLRXVRIPDOLJQDQF\
& 'HILQLWHO\PDOLJQDQW
$LPVRIEUHDVWFDQFHUVXUJHU\
7RDFKLHYHFXUHLIH[FLVHGEHIRUHPHWDVWDWLFVSUHDGKDVRFFXUUHG
7RSUHYHQWXQSOHDVDQWVHTXHODHRIORFDOUHFXUUHQFH
6XUJLFDORSWLRQVIRUWKHEUHDVW
%UHDVW&RQVHUYLQJ6XUJHU\%&6UDGLRWKHUDS\

%&6LVUHJDUGHGDVHLWKHUZLGHORFDOH[FLVLRQTXDGUDQWHFWRP\RUVHJPHQWHFWRP\
6LPSOHPDVWHFWRP\
5DGLFDOPDVWHFWRP\ REVROHWH
0DVWHFWRP\UHFRQVWUXFWLRQLPPHGLDWHRUGHOD\HG
7XPRXUVVXLWDEOHIRUEUHDVWFRQVHUYDWLRQ
178
1HRSODVLD
6PDOOVLQJOHWXPRXUVLQDODUJHEUHDVW
3HULSKHUDOORFDWLRQ
1RORFDODGYDQFHPHQWRUH[WHQVLYHQRGDOLQYROYHPHQW
)RUWXPRXUVWKDWDUHVXLWDEOHIRUEUHDVWFRQVHUYDWLRQWKHUHLVQRGLIIHUHQFHLQORFDOUHFXUUHQFH
RURYHUDOOVXUYLYDOZKHQ%&6UDGLRWKHUDS\LVFRPSDUHGWRPDVWHFWR P\
$LPVRID[LOODU\VXUJHU\
RISDWLHQWVZLWKHDUO\EUHDVWFDQFHUKDYHQRGDOLQYROYHPHQW
7KHDLPVRID[LOODU\VXUJHU\LVWR
7RHUDGLFDWHORFDOGLVHDVH
7RGHWHUPLQHSURJQRVLVWRJXLGHDGMXYDQWWKHUDS\
&OLQLFDOHYDOXDWLRQRIWKHD[LOODLVXQUHOLDEOHIDOVHSRVLWLYHIDOVHQHJDWLYH
1RUHOLDEOHLPDJLQJWHFKQLTXHVDYDLODEOH
6XUJLFDOHYDOXDWLRQLPSRUWDQWDQGVKRXOGEHFRQVLGHUHGIRUDOOSDWLHQWVZLWKLQYDVLYHFDQFHU
/HYHOVRID[LOODU\FOHDUDQFHDUHDVVHVVHG UHODWLYHWRSHFWRUDOLVPLQRU
/HYHO EHORZSHFWRUDOLVPLQRU
/HYHO XSWRXSSHUERUGHURISHFWRUDOLVPLQRU
VW
/HYHO WRWKHRXWHUERUGHURIWKH ULE
$[LOODU\VDPSOLQJVUHPRYHVDWOHDVWIRXUQRGHV
$UJXPHQWVIRUD[LOODU\FOHDUDQFH
$[LOODU\FOHDUDQFHERWKVWDJHVDQGWUHDWVWKHD[LOOD
6DPSOLQJSRWHQWLDOO\PLVVHVQRGHVDQGXQGHUVWDJHVWKHD[LOOD
6XUJLFDOFOHDUDQFHSRVVLEO\JDLQVEHWWHUORFDOFRQWURO
$YRLGVFRPSOLFDWLRQVRID[LOODU\UDGLRWKHUDS\
$YRLGVPRUELGLW\RID[LOODU\UHFXUUHQFH
$UJXPHQWVIRUD[LOODU\VDPSOLQJ
2QO\VWDJHVWKHD[LOOD
0XVWEHIROORZHGE\D[LOODU\UDGLRWKHUDS\
7KHRISDWLHQWVZLWKQRGHQHJDWLYHGLVHDVHKDYHXQQHFHVVDU\VXUJHU\
5DGLFDOO\PSKDGHQHFWRP\LQRWKHUFDQFHUVHJPHODQRPDSURGXFHVGLVDSSRLQWLQJUHVXOWV
$YRLGVPRUELGLW\RID[LOODU\VXUJHU\
7KHFRPELQDWLRQRID[LOODU\FOHDUDQFHDQGUDGLRWKHUDS\LVWREHDYRLGHG
3URGXFHVXQDFFHSWDEOHUDWHRIO\PSKRHGHPD
3URJQRVWLFIDFWRUVLQHDUO\EUHDVWFDQFHU
ZRPHQZLWKRSHUDEOHEUHDVWFDQFHUZKRUHFHLYHORFRUHJLRQDOWUHDWPHQWDORQHZLOOGLHIURP
PHWDVWDWLFGLVHDVH
3URJQRVWLFIDFWRUVKDYHWKUHHPDLQXVHV
7RVHOHFWDSSURSULDWHDGMXYDQWWKHUDS\DFFRUGLQJWRSURJQRVLV
7RDOORZFRPSDULVRQRIWUHDWPHQWEHWZHHQVLPLODUJURXSVRISDWLHQWDWULVNRIU HFXUUHQFHRU
GHDWK
7RLPSURYHWKHXQGHUVWDQGLQJRIWKHGLVHDVH
3URJQRVWLFIDFWRUVFDQEH
D&KURQRORJLFDO
,QGLFDWLRQRIKRZORQJWKHGLVHDVHKDVEHHQSUHVHQW
5HODWHWRVWDJHRIGLVHDVHDWSUHVHQWDWLRQ
E%LRORJLFDO
5HODWHWRLQWULQVLFEHKDYLRXURIWXPRXU
179
1HRSODVLD
&KURQRORJLFDOSURJQRVWLFIDFWRUV
$JH
<RXQJHUZRPHQKDYHSRRUHUSURJQRVLVRIHTXLYDOHQWVWDJH
7XPRXUVL]H
'LDPHWHURIWXPRXUFRUUHODWHVGLUHFWO\ZLWKVXUYLYDO
/\PSKQRGHVWDWXV
6LQJOHEHVWSURJQRVWLFIDFWRU
'LUHFWFRUUHODWLRQEHWZHHQQXPEHUDQGOHYHORIQRGHVLQYROYHGDQGVXUYLYDO
0HWDVWDVHV
'LVWDQWPHWDVWDVHVZRUVHQVXUYLYDO
%LRORJLFDOSURJQRVWLFIDFWRUV
+LVWRORJLFDOW\SH
6RPHKLVWRORJLFDOW\SHVDVVRFLDWHGZLWKLPSURYHGSURJQRVLV
7XEXODUFULEULIRUPPXFLQRXVSDSLOODU\PLFURLQYDVLYH
+LVWRORJLFDOJUDGH
7KUHHFKDUDFWHULVWLFVDOORZVFRULQJRIJUDGHLQWR
7XEXOHIRUPDWLRQQXFOHDUSOHRPRUSKLVPPLWRWLFIUHTXHQF\
/\PSKDWLFYDVFXODULQYDVLRQ
RSHUDEOHEUHDVWFDQFHUVKDYHO\PSKRYDVFXODULQYDVLRQ
'RXEOHULVNRIORFDOUHODSVH
+LJKHUULVNRIVKRUWWHUPV\VWHPLFUHODSVH
%LRFKHPLFDOPHDVXUHPHQWV
+RUPRQHDQGJURZWKIDFWRUUHFHSWRUV
(5SRVLWLYLW\SUHGLFWVIRUUHVSRQVHWRHQGRFULQHPDQLSXODWLRQ
(*)UHFHSWRUVDUHQHJDWLYHO\FRUUHODWHGZLWK(5DQGSRRUHUSURJQRVLV
2QFRJHQHV
7XPRXUVWKDWH[SUHVV&HUE%RQFRJHQHOLNHO\WREH
UHVLVWDQWWR&0)FKHPRWKHUDS\
UHVLVWDQWWRKRUPRQDOWKHUDS\
UHVSRQGWRDQWKUDF\FOLQH
UHVSRQGWRWD[ROV
3URWHDVHV
8URNLQDVHDQGFDWKHSVLQ'IRXQGLQEUHDVWFDQFHU
3UHVHQFHFRQIHUVDSRRUHUSURJQRVLV
180
1HRSODVLD
3URJQRVWLFLQGLFHV
$OWKRXJKLQGLYLGXDOSURJQRVWLFIDFWRUVDUHXVHIXOFRPELQLQJLQGHSHQGHQWSURJQRVWLFYDULDEOHVLQ
WKHIRUPRIDQLQGH[DOORZVLGHQWLILFDWLRQRISDWLHQWVZLWKGLIIHUHQWSURJQRVHV
1RWWLQJKDP3URJQRVWLF,QGH[13,
,QFRUSRUDWHVWKUHHIDFWRUV
7XPRXUVL]H
1RGDOVWDWXV
+LVWRORJLFDOJUDGH
7DEOH 7KH1RWWLQJKDP3URJQRVWLF,QGH[
,QYROYHG1RGHV

!
)DFWRU
7XPRXU*UDGH

6FRUHSHUIDFWRU

13, [VL]HFP/\PSKQRGHVWDJH7XPRXUJUDGH
&KHPRWKHUDS\LQEUHDVWFDQFHU
&DQEHJLYHQDV
3ULPDU\V\VWHPLFWKHUDS\SULRUWRORFRUHJLRQDOWUHDWPHQW
$GMXYDQWWKHUDS\IROORZLQJORFRUHJLRQDOWUHDWPHQW
3RVWRSHUDWLYHDGMXYDQWFKHPRWKHUDS\
'HSHQGVSULPDULO\RQ
$JHPHQRSDXVDOVWDWXV
1RGDOVWDWXV
&RPELQDWLRQFKHPRWKHUDS\PRUHHIIHFWLYHWKDQVLQJOHGUXJ
0RVWFRPPRQO\XVHGUHJLPHQ &0)&\FORSKRVSKDPLGH0HWKRWUH[DWH)OXURXUDFLO
*LYHQDVVL[F\FOHVDWPRQWKO\LQWHUYDOV
1RHYLGHQFHWKDWPRUHWKDQPRQWKVWUHDWPHQWLVRIEHQHILW
*UHDWHVWEHQHILWVHHQLQSUHPHQRSDXVDOZRPHQ
+LJKGRVHFKHPRWKHUDS\ZLWKVWHPFHOOUHVFXHSURGXFHVQRRYHUDOOVXUYLYDOEHQHILW
7DEOH &KHPRWKHUDSHXWLFRSWLRQVLQEUHDVWFDQFHU
$JH
3UHPHQRSDXVDO
1RGDOVWDWH
1RGHSRVLWLYH
1RGHQHJDWLYH
3RVWPHQRSDXVDO
1RGHSRVLWLYH
1RGH QHJDWLYH
7UHDWPHQW
&RPELQDWLRQFKHPRWKHUDS\
$GMXYDQWWKHUDS\LVQRWJHQHUDOO\UHFRPPHQGHGIRU
KLJKULVNSDWLHQWVFKHPRWKHUDS\VKRXOGEH
FRQVLGHUHG
(5SRVLWLYH 7DPR[LIHQ
(5QHJDWLYH &RPELQDWLRQFKHPRWKHUDS\VKRXOGEH
FRQVLGHUHG
1RLQGLFDWLRQIRUURXWLQHDGMXYDQWWKHUDS\IRUKLJKULVN
SDWLHQWVFKHPRWKHUDS\VKRXOGEHFRQVLGHUHG
181
1HRSODVLD
3ULPDU\QHRDGMXYDQWFKHPRWKHUDS\
&KHPRWKHUDS\SULRUWRVXUJHU\IRUODUJHRUORFDOO\DGYDQFHGWXPRX UV
6KULQNVWXPRXURIWHQDOORZLQJEUHDVWFRQVHUYLQJVXUJHU\UDWKHUWKDQPDVWHFWRP\
WXPRXUVVKRZDFOLQLFDOUHVSRQVH
,QWKLVLVUHVSRQVHLVFRPSOHWH
6XUJHU\UHTXLUHGHYHQLQWKRVHZLWKFRPSOHWHFOLQLFDOUHVSRQVH
RIWKHVHSDWLHQWVVWLOOKDYHKLVWRORJLFDOHYLGHQFHRIWXPRXU
3ULPDU\V\VWHPLFWKHUDS\KDVQRWWRGDWHEHHQVKRZQWRLPSURYHVXUYLYDO
(QGRFULQHWKHUDS\LQEUHDVWFDQFHU
,WLVMXVWRYHU\HDUVVLQFH%HDWVRQGHVFULEHGUHVSRQVHWRRRSKRUHFWRP\LQZRPHQZLWK
DGYDQFHGEUHDVWFDQFHU
7DPR[LIHQ
7DPR[LIHQLVDQRUDODQWLRHVWURJHQ
(IIHFWLYHLQERWKWKHDGMXYDQWVHWWLQJDQGLQDGYDQFHGGLVHDVH
PJSHUGD\LVDVHIIHFWLYHDVKLJKHUGRVHV
\HDUVWUHDWPHQWLVEHWWHUWKDQ\HDUV
9DOXHRIWUHDWPHQWEH\RQG\HDUVLVXQNQRZQ
5LVNRIFRQWUDODWHUDOEUHDVWFDQFHUUHGXFHGE\
*UHDWHUEHQHILWVHHQLQRHVWURJHQUHFHSWRUULFKWXPRXUV
%HQHILWVWLOOVHHQLQRHVWURJHQUHFHSWRUQHJDWLYHWXPRXUV
%HQHILWREVHUYHGLQERWKSUHDQGSRVWPHQRSDXVDOZRPHQ
/RFDOO\DGYDQFHGEUHDVWFDQFHU
5HJDUGHG DVDWXPRXUWKDWLVQRWVXUJLFDOO\UHVHFWDEOH
&OLQLFDOIHDWXUHVLQFOXGH
6NLQXOFHUDWLRQ
'HUPDOLQILOWUDWLRQ
(U\WKHPDRYHUWKHWXPRXU
6DWHOOLWHQRGXOHV
3HDXG
RUDQJH
)L[DWLRQWRFKHVWZDOOVHUUDWXVDQWHULRURULQWHUFRVWDOPXVFOHV
)L[HGD[LOODU\QRGHV
,IRHVWURJHQUHFHSWRUSRVLWLYHXVXDOO\WUHDWHGZLWKSULPDU\KRUPRQDO
,IRHVWURJHQUHFHSWRUQHJDWLYHFKHPRWKHUDS\PD\EHXVHIXO
5DGLRWKHUDS\PD\EHXVHIXOLQORFDOFRQWURORIGLVHDVH
,IDGHTXDWHUHVSRQVHDVDOYDJHPDVWHFWRP\FDQEHFRQVLGHU
5HFXUUHQWEUHDVWFDQFHU
0RVWORFDOUHFXUUHQFHVDUHV\PSWRPDWLF
2IWHQDVVRFLDWHGZLWKWKHGHYHORSPHQWRIPHWDVWDWLFGLVHDVH
5HVWDJLQJLVWKHUHIRUHHVVHQWLDO
&RPPRQHVWVLWHVIRUGXFWDOFDUFLQRPDDUHOLYHUERQHDQGOXQJ
/REXODUFDUFLQRPDOHVVSUHGLFWDEOHRIWHQVSUHDGLQJWRERZHOUHWURSHULWRQHXPHWF
5HFXUUHQFHZKLOVWRQDGMXYDQWWDPR[LIHQFRQVLGHU
)XUWKHUVXUJHU\IRU
,VRODWHG
VSRW
UHFXUUHQFHDIWHUPDVWHFWRP\
/RFDOUHFXUUHQFHLQWKHFRQVHUYHGEUHDVW
5DGLRWKHUDS\LIQRWSUHYLRXVO\JLYHQ
&KDQJHRIKRUPRQDODJHQWWRDQDVWR]ROHRUPHJHVWURODFHWDWH
182
1HRSODVLD
%UHDVWFDQFHUJHQHWLFV
EUHDVWDQGRYDULDQFDQFHUVGXHWRJHUPOLQHPXWDWLRQ
&RPPRQHVWDEQRUPDOLW\LVLQ%5&$JHQHRQORQJDUPRIFKURPRVRPH
0XWDWLRQVHHQLQRIIDPLOLHVZLWKRUPRUHDIIHFWHGPHPEHUV\HDUV
!%5&$PXWDWLRQVGHVFULEHG
+LJKHVWFDUULHUUDWHLVLQ$VKNHQD]L-HZV
,IDSDWLHQWLV%5&$SRVLWLYHVKHKDV
ULVNRIGHYHORSLQJFRQWUDODWHUDOEUHDVWFDQFHU
OLIHWLPHULVNRIGHYHORSLQJRYDULDQFDQFHU
+RZVKRXOGWKHVHZRPHQEHPDQDJHG"
&KHPRSURSK\OD[LV SRVVLEO\WDPR[LIHQ
3URSK\ODFWLFPDVWHFWRP\
%LEOLRJUDSK\
%DXP0+RXJKWRQ-&RQWULEXWLRQRIUDQGRPLVHGFRQWUROOHGWULDOVWRXQGHUVWDQGLQJDQGPDQDJHPHQWRI
HDUO\EUHDVWFDQFHU%U0HG-
%XQGUHG1-'RZQH\6(7KHPDQDJHPHQWRIHDUO\EUHDVWFDQFHU &XUU3UDFW6XUJ
&DUW\1-0DQDJHPHQWRIGXFWDO FDUFLQRPDLQVLWXRIWKHEUHDVW$QQ5&ROO6XUJ

&ROHPDQ57KHPDQDJHPHQWRIDGYDQFHGEUHDVWFDQFHU &XUU3UDFW6XUJ
(OWDKLU$+H\V6+XWFKHRQ$:HWDO 7UHDWPHQWRIODUJHDQGORFDOO\DGYDQFHGEUHDVWFDQFHUV XVLQJ

QHRDGMXYDQWFKHPRWKHUDS\$P-6XUJ
)DON6-5DGLRWKHUDS\DQGWKHPDQDJHPHQWRIWKHD[LOODLQHDUO\EUHDVWFDQFHU %U-6XUJ

)HQWLPDQ,60DQVHO5(7KHD[LOODQRWDQRJR]RQH /DQFHW
)RUUHVW$30HWDO7KH(GLQEXUJKUDQGRPLVHGWUDLORID[LOODU\VDPSOLQJRUFOHDUDQFHDIWHUPDVWHFWRP\
%U-6XUJ
*DOHD0+%ODPH\5:(OVWRQ&((OOLV,27KH1RWWLQJKDPSURJQRVWLFLQGH[LQSULPDU\EUHDVW
FDQFHU%UHDVW&DQFHU5HVHDUFKDQG7UHDWPHQW
*UHHQDOO0-:K\,IDYRXUD[LOODU\QRGHVDPSOLQJLQWKHPDQDJHPHQWRIEUHDVWFDQFHU (XU-6XUJ
2QFRO
+ROFRPEH&0DQVHO5($[LOODU\VXUJHU\LQWKHPDQDJHPHQWRIEUHDVWFDQFHU &XUU3UDFW6XUJ

+ROODQG3$%XQGUHG1-7KHPDQDJHPHQWRIGXFWDOFDUFLQRPDLQVLWX 7KH%UHDVW
+RUWREDJ\L*17UHDWPHQWRIEUHDVWFDQFHU1(QJ-0HG
-RKQVWRQ65' 6\VWHPLFWUHDWPHQWRIPHWDVWDWLFEUHDVWFDQFHU +RVS0HG
0DF0LOODQ5'3XUXVKRWKDP$'*HRUJH:'/RFDOUHFXUUHQFHDIWHUEUHDVWFRQVHUYLQJVXUJHU\IRU
EUHDVWFDQFHU%U-6XUJ
183
1HRSODVLD
0F,QWRVK6$3XUXVKRWKDP$'/\PSKDWLFPDSSLQJDQGVHQWL QHOQRGHELRSV\LQEUHDVWFDQFHU%U-
6XUJ
6DLQVEXU\-5&%UHDVWFDQFHU3RVWJUDG0HG-
6DXQGHUV&07KHFXUUHQWPDQDJHPHQWRIEUHDVWFDQFHU %U-+RVS0HG
7D\ORU,HWDO +RZVKRXOG WKHD[LOODEHWUHDWHGLQEUHDVWFDQFHU" (XU-6XUJ2QFRO
184
1HRSODVLD
%UHDVWUHFRQVWUXFWLRQLVLQFUHDVLQJLQSRSXODULW\
&DQEHSHUIRUPHGDVLPPHGLDWHRUGHOD\HGSURFHGXUH
%UHDVWUHFRQVWUXFWLRQLVRQFRORJLFDOO\VDIH
'RHVQRWGHOD\DGMXYDQWWKHUDS\
'RHVQRWGHOD\WKHGHWHFWLRQRIUHFXUUHQWGLVHDVH
7KHUHDUHQRDEVROXWHFRQWUDLQGLFDWLRQV
5HODWLYHFRQWUDLQGLFDWLRQVDUHROGDJHGLDEHWHVVPRNHUFROODJHQGLVHDVHV
3UHRSHUDWLYHFRXQVHOOLQJLVHVVHQWLDO
5HFRQVWUXFWLYHRSWLRQV
7KHUHDUHWKUHHW\SHVRIEUHDVWUHFRQVWUXFWLRQ
7LVVXHH[SDQGHUV
3HGLFOHGP\RFXWDQHRXVIODSV
)UHHWLVVXHWUDQVIHU
(DFKKDVVSHFLILFXVHVDQGFRPSOLFDWLRQV
7KHFRQWUDODWHUDOEUHDVWPD\UHTXLUHVXUJHU\WRSURGXFHV\PPHW U\
7LVVXHH[SDQGHUV
$VLPSOHDQGUHOLDEOHWHFKQLTXH
:KHQXVHGDORQHRIWHQSURGXFHDSRRUFRVPHWLFUHVXOW
&DSVXODUFRQWUDFWXUHFDQUHVXOWLQILUPQHVVDQGGLVFRPIRUW
&DSVXOHFWRP\DQGUHSODFHPHQWRIWKHLPSODQWPD\EHUHTXLUHG
5DGLRWKHUDS\PD\LQFUHDVHWKHULVNRIFDSVXODUFRQWUDFWXUH
7H[WXUHGLPSODQWVUHGXFHWKHULVNRIFDSVXOHIRUPDWLRQ
3HGLFOHGP\RFXWDQHRXVIODSV
7KHWZRFRPPRQHVWIODSVDUH
7KHODWLVVLPXVGRUVLIODSEDVHGRQWKHWKRUDFRGRUVDOYHVVHOV
7KHSHGLFDOWUDQVYHUVHUHFWXVDEGRPLQLVEDVH GRQWKHVXSHULRUHSLJDVWULFYHVVHOV
3HGLFOHGIODSVSURGXFHDEHWWHUFRVPHWLFUHVXOW
8VHRIDQ/'IODSLVRIWHQFRPELQHGZLWKWLVVXHH[SDQGHURUSURVWKHVLV
75$0IODSVRIWHQSURYLGHHQRXJKDXWRORJRXVWLVVXHWRDYRLGWKHQHHGIRUDWLVVXHH[SDQGHU
*HQHUDOFRPSOLFDWLRQVDVVRFLDWHGZLWKIODSVLQFOXGHQHFURVLVDQGIODSORVV
7KH/'IODSOHDYHVDVFDURQWKHEDFNDQGVRPHVKRXOGHUZHDNQHVV
75$0IODSVFDQUHVXOWLQDEGRPLQDOGRQRUVLWHKHUQLDDQGZHDNQHVV
1LSSOHUHFRQVWUXFWLRQ
1LSSOHVFDQEHUHFRQVWUXFWHGE\
1LSSOHVKDULQJ
6NDWHIODSV
/DELDOJUDIWV
1LSSOHWDWWRRLQJ
3URVWKHWLFQLSSOHV
%LEOLRJUDSK\
3DWHO5-:HEVWHU'-70DQVHO5(+XJKHV/(,VLPPHGLDWHSRVW PDVWHFWRP\UHFRQVWUXFWLRQVDIH
LQWKHORQJWHUP"(XU-6XUJ2QFRO
&RUUDO&-0XVWRH7$&RQWURYHUV\LQEUHDVWUHFRQVWUXFWLRQ 6XUJ&OLQ1RUWK$P
185
1HRSODVLD
0DODWD&00F,QWRVK6$3XUXVKRWKDP$',PPHGLDWHEUHDVWUHFRQVWUXFWLRQDIWHUPDVWHFWRP\IRU
FDQFHU%U-6XUJ
5DLQVEXU\50%UHDVWUHFRQVWUXFWLRQ QHZWHFKQLTXHV,Q7D\ORU,-RKQVRQ&'HGV5HFHQW
DGYDQFHVLQVXUJHU\&KXUFKLOO/LYLQJVWRQH(GLQEXUJK
186
1HRSODVLD
%UHDVWFDQFHUVFUHHQLQJ
&ULWHULDIRUDQHIIHFWLYHVFUHHQLQJSURJUDPPH
7KHGLVHDVHVFUHHQHGIRUPXVWEHDQLPSRUWDQWSUREOHP
7KHQDWXUDOKLVWRU\RIWKHGLVHDVHVKRXOGEHZHOOXQGHUVWRRGZLWKDUHFRJQLVDEOHHDUO\
VWDJH
$VSHFLILFDQGVHQVLWLYHWHVWIRUWKHHDUO\GHWHFWLRQ RIWKHGLVHDVHPXVWEHDYDLODEOH
7KHUHVKRXOGEHJRRGHYLGHQFHWKDWWKHVFUHHQLQJWHVWFDQUHVXOWLQUHGXFHGPRUWDOLW\DQG
PRUELGLW\LQWKHWDUJHWHGSRSXODWLRQ
7KHWHVWPXVWEHDFFHSWDEOHSURGXFLQJDKLJKSDUWLFLSDWLRQUDWH
7KHUHVKRXOGEHVXLWDEOHIDFLOLWLHVIRUGLDJQRVLVDQGWUHDWPHQWRIGHWHFWHGDEQRUPDOLWLHV
7KHUHVKRXOGEHDSSURSULDWHWUHDWPHQWRSWLRQV
7KHEHQHILWVRIVFUHHQLQJVKRXOGRXWZHLJKDQ\DGYHUVHHIIHFWV
7KHEHQHILWPXVWEHRIDQDFFHSWDEOHILQDQFLDOFRVW
7KHUHVXOWVRIWKHLPSOHPHQWDWLRQUHTXLUHDXGLWWRHQVXUHWKH\PHHWWKHDERYHFULWHULD
6HQVLWLYLW\DQGVSHFLILFLW\
$VFUHHQLQJWHVWFDQJLYHDSRVLWLYHRUQHJDWLYHUHVXOW
'RHVQRWLPSO\WKDWWKHSDWLHQWKDVRUGRHVQRWKDYHWKHGLVHDVH
7KHWHVWUHVXOWVFDQEH
7UXHSRVLWLYH73 $SRVLWLYHWHVWUHVXOWLQWKHSUHVHQFHRIWKHGLVHDVH
7UXHQHJDWLYH71 $QHJDWLYHWHVWUHVXOWLQWKHDEVHQFHRIWKHGLVHDVH
)DOVHSRVLWLYH)3 $SRVLWLYHWHVWUHVXOWLQWKHDEVHQFHRIWKHGLVHDVH
)DOVHQHJDWLYH)1 $QHJDWLYHWHVWUHVXOWLQWKHSUHVHQFHRIWKHGLVHDVH
6HQVLWLYLW\ WKHDELOLW\RIWKHWHVWWRLGHQWLI\WKHGLVHDVHLQWKRVHZKRKDYHLW
(TXDOV7373)1
6SHFLILFLW\ WKHDELOLW\RIWKHWHVWWRH[FOXGHWKHGLVHDVHLQWKHDEVHQF HRIWKHGLVHDVH
(TXDOV7171)3
,VEUHDVWFDQFHUVFUHHQLQJZRUWKZKLOH"
$QLPSRUWDQWSUREOHP
6LQJOHOHDGLQJFDXVHRIFDQFHUGHDWK
/LIHWLPHLQFLGHQFHLVDSSUR[LPDWHO\
7KHQDWXUDOKLVWRU\
'RHV'&,6DOZD\VSURFHHGWRLQYDVLYHFDQFHU"
$WZKDWVWDJHGRHVLQYDVLYHFDQFHUFHDVHWREHORFDOLVHGWRWKHEUHDVW"
$WZKDWLQWHUYDOGRHVVFUHHQLQJQHHGWREHUHSHDWHG"
$VXLWDEOHWHVW
6LQJOHYLHZPDPPRJUDSK\LVVHQVLWLYHDQGVSHFLILF
%UHDVWH[DPLQDWLRQDGGVQRWKLQJWRYDOXHRIPDPPRJUDSKLFVFUHHQLQJ
6FUHHQLQJLVHIIHFWLYH
3ULPDU\DLPRIVFUHHQLQJLVWKHUHGXFWLRQRIEUHDVWFDQFHUPRUWDOLW\
%HVWHYLGHQFHFRPHVIURPUDQGRPLVHGFRQWUROWULDOV
187
1HRSODVLD
$YRLGVFUHHQLQJELDVHV
6HOHFWLRQ%LDV SDWLHQWVVHOHFWWKHPVHOYHVLQWRRQHJURXSE\DWWHQGLQJ
/HDG 7LPH%LDV (DUO\GHWHFWLRQDSSHDUVWRLPSURYHVXUYLYDOE\LQFUHDVLQJWLPHIRUP
GLDJQRVLVWRGHDWK\HWPRUWDOLW\LVXQFKDQJHGWKHSDWLHQWLVVLPSO\DZDUHWKDWWKH\KDYH
WKHGLVHDVHIRUORQJHU
/HQJWK%LDV 6ORZHUJURZLQJEHWWHUSURJQRVLVWXPRXUVDUHPRUHOLNHO\WREHGHWHFWHGE\
VFUHHQLQJ
$QDFFHSWDEOHWHVW
,IVFUHHQLQJDFFHSWDEOHFRPSOLDQFHLQFUHDVHGDQGPRUWDOLW\LVUHGXFHG
&RPSOLDQFHRI!ZLOOLPSDFWRQPRUWDOLW\
&RPSOLDQFHGHFUHDVHVZLWKDJH
)DFLOLWLHVIRUGLDJQRVLVDQGWUHDWPHQW
1HHGIDFLOLWLHVIRUUDGLRORJ\FOLQLFDODVVHVVPHQWF\WRORJ\VXUJHU\SDWKRORJ\HWF
$SSURSULDWHWUHDWPHQWRSWLRQV
7UHDWPHQWPXVWLPSDFWRQQDWXUDOFRXUVHRIGLVHDVH
0XVWKDYHWROHUDEOHDQGPLQLPDOVLGHHIIHFWV
$GYHUVHHIIHFWVDQGFRVWEHQHILWDQDO\VLV
3ULQFLSDODGYHUVHHIIHFWVRIPDPPRJUDSKLFVFUHHQLQJ
5HVRXUFHVUHTXLUHG
([SRVXUHRIZRPHQWRLRQLVLQJUDGLDWLRQ
)DOVHSRVLWLYHUHVXOWVZLWKXQQHFHVVDU\ELRSVLHV
8QQHFHVVDU\WUHDWPHQWRIOHVLRQVWKDWPD\QHYHUKDYHFDXVHGSUREOHPV
+LVWRU\RIEUHDVWVFUHHQLQJ
7KHIROORZLQJGLVFXVVLRQRIWKHKLVWRU\RIEUHDVWVFUHHQLQJLQ(XURSHDQGWKH86$LVLQFOXGHGWR
KLJKOLJKWWKHGLIILFXOWLHVRIHYDOXDWLQJVFUHHQLQJSURJUDPPHV
+,36WXG\
%HJDQLQ
+HDOWK,QVXUDQFH3ODQRI1HZ<RUN
5DQGRPLVHGFRQWUROWUDLORIZRPHQ
DFFHSWHGLQYLWDWLRQIRUWZRYLHZPDPPRJUDSK\DQGFOLQLFDOH[DPLQDWLRQ
)ROORZHGXSZLWK\HDUO\PDPPRJUDSK\DQGH[DPLQDWLRQ
&RQWUROVUHFHLYHGURXWLQHPHGLFDOFDUH
0DPPRJUDSK\DORQHGHWHFWHGRIEUHDVWFDQFHUV
&OLQLFDOH[DPLQDWLRQGHWHFWHG DIXUWKHU
$W\HDUVPRUWDOLW\IURPFDQFHUGHWHFWHGLQILUVW\HDUVZDVUHGXFHGE\
/DUJHVWHIIHFWLQZRPHQ!\HDUV
%UHDVW&DQFHU'HWHFWLRQ'HPRQVWUDWLRQ3URMHFW%&''3
%HJDQLQ
'HVLJQHGWRWHVWFRQGXFWRIUDWKHUWKDQHIILFDF\RIVFUHHQLQJ
ZRPHQEHWZHHQ \HDUVHQUROOHG
\HDUO\PDPPRJUDSK\DQGFOLQLFDOH[DPLQDWLRQ
1RFRQWUROJURXS&RPSDUHGZLWK+,3GDWD
6FUHHQLQJHIIHFWLYHIRUZRPHQ!\HDUV
(IIHFWSDUWLFXODUO\JRRGIRUFDQFHUVGHWHFWHGE\VFUHHQLQJRQO\
188
1HRSODVLD
6ZHGLVKWZRFRXQW\WULDO
%HJDQLQ
5DQGRPLVHGFRQWUROWULDORIPDVVVFUHHQLQJ
ZRPHQEHWZHHQ \HDUV
7ZRDUHDFRPSDUHG.RSSDUEHUJDQG2VWHUJRWODQG
6LQJOHPHGLRODWHUDOREOLTXHYLHZPDPPRJUDSK\
+LJKFRPSOLDQFHDWSUHYDOHQFHURXQGDWLQFLGHQFHU RXQG
RIFRQWUROJURXSXQGHUZHQWPDPPRJUDSK\DVSDUWRIQRUPDOPHGLFDOFDUH
%\UHGXFWLRQLQEUHDVWFDQFHUPRUWDOLW\LQVFUHHQHGJURXS
(IIHFWJUHDWHVW!\HDUV
1HWKHUODQGVFDVHFRQWUROVWXGLHV
7ZRFDVHFRQWUROVWXGLHV
&DVHV 'HDWKVIURPEUHDVW FDQFHUDIWHUILUVWVFUHHQLQJURXQG
&RQWUROV 5DQGRPVDPSOHRIDJHPDWFKHGZRPHQDOLYHDWWLPHRIFDVHGHDWK
2GGVUDWLRIRUEUHDVWFDQFHUGHDWKVFDOFXODWHG
:RPHQVHOIVHOHFWHGLQWRVFUHHQHGDQGQRQVFUHHQHGJURXS
6HOHFWLRQELDVSRVVLEOH
1RQVFUHHQHGSRSXODWLRQRI$UQKHPXVHGWRSURYLGHFRQWUROEUHDVWFDQFHUUDWHVDQGWR
HVWLPDWHHIIHFWRIVHOHFWLRQELDVLQ1LMPHJHQSRSXODWLRQ
1LMPHJHQ3URMHFW
%HJDQLQ
6LQJOHYLHZPDPPRJUDSK\HYHU\\HDUV
ZRPHQEHWZHHQ LQYLWHGIRUVFUHHQLQJ
UHGXFWLRQLQEUHDVWFDQFHUPRUWDOLW\LQVFUHHQHGJURXS
'203URMHFW
%HJDQLQ
&OLQLFDOH[DPLQDWLRQDQGPDPPRJUDSK\DWDQGPRQWKV
ZRPHQEHWZHHQ \HDUV
&RQFOXVLRQVIURPLQLWLDOEUHDVWVFUHHQLQJWULDOV
(YHU\PDMRUWUDLOVKRZVWKDWEUHDVWFDQFHUVFUHHQLQJUHGXFHVULVNRIGHDWKIURPEUHDVWFDQFHU
LQZRPHQ!\HDUV
(IIHFWEHJLQV\HDUVDIWHUVFUHHQLQJKDVFRPPHQFHG
,QDOOVWXGLHVPRUWDOLW\FXUYHVZHUHGLYHUJLQJDWWLPHRIDQDO\VLVDQGOLNHO\WRLQFUHDVHLQ
VLJQLILFDQFHZLWKWLPH
)RUZRPHQ \HDUVQRWULDOKDVVKRZQDUHGXFWLRQLQPRUWDOLW\IURPVFUHHQLQJ
1DWLRQDO+HDWK6HUYLFH%UHDVW6FUHHQLQJ3URJUDPPH
,QWURGXFHGLQZLWKVFUHHQLQJSURJUDPPHV
)ROORZHG)RUHVW5HSRUW
$OOZRPHQ\HDUVLQYLWHGIRU\HDUO\VLQJOHYLHZPDPPRJUDSK\
8SSHUDJHOLPLWVRRQWREHH[WHQGHGWR\HDUV
,IDEQRUPDOLW\VHHQRQPDPPRJUDPZRPHQUHFDOOHGIRU
&OLQLFDOH[DPLQDWLRQ
)XUWKHULPDJLQJ PDPPRJUDSK\RUXOWUDVRXQG
)LQHQHHGOHDVSLUDWLRQF\WRORJ\RUFRUHELRSV\
RIVFUHHQGHWHFWHGDEQRUPDOLWLHVVKRZQWREHXQLPSRUWDQWIROORZLQJWULSOHDVVHVVPHQW
189
1HRSODVLD
&XUUHQWFRQWURYHUVLHVLQEUHDVWVFUHHQLQJ
1XPEHURIPDPPRJUDSKLFYLHZV
8.&&5PXWLFHQWUHUDQGRPLVHGFRQWUROWULDORIRQHDQGWZRYLHZPDPPRJUDSK\
7ZRYLHZPDPPRJUDSK\GHWHFWVPRUHFDQFHUVDQGOHDGVWRUHFDOORIIHZHUZRPHQ
0RVWFHQWUHVQRZSHUIRUPYLHZPDPPRJUDSK\DWILUVWVFUHHQLQJ
7ZRYLHZVZLOOVRRQEHSHUIRUPHGDWDOOVFUHHQLQJURXQGV
)UHTXHQF\RIVFUHHQLQJ
&RQFHUQWKDW\HDUO\VFUHHQLQJLQWHUYDOWRRORQJ
0RVW(XURSHDQFRXQWULHVVFUHHQHYHU\\HDUV
,QWHUYDOFDQFHUV FDQFHUVRFFXUULQJEHWZHHQVFUHHQLQJHSLVRGHV
VW
QG
UG
5DWHVLQ \HDUDIWHUVFUHHQLQJDQGH[SHFWHGLQFLGHQFHLQWKH
DEVHQFHRIVFUHHQLQJ
6FUHHQLQJXQGHU\HDUVRIDJH
2QO\EUHDVWFDQFHUVRFFXULQZRPHQOHVVWKDQ\HDUV
0HWDDQDO\VLVRIDOODYDLODEOHWULDOUHVXOWVVXJJHVWQRQVLJQLILFDQWUHGXFWLRQLQPRUWDOLW\
6HQVLWLYLW\RIPDPPRJUDSK\UHGXFHGLQWKH\RXQJEUHDVW
%LEOLRJUDSK\
$OH[DQGHU)($QGHUVRQ7-%URZQ+.HWDO \HDUVRIIROORZXSIURPWKH(GLQEXUJKUDQGRPLVHG
WULDORIEUHDVWVFUHHQLQJ/DQFHW
'L[RQ-05DYLVFKHU2&XQQLQJKDP0HWDO)DFWRUVDIIHFWLQJRXWFRPHRISDWLHQWVZLWKLPSDOSDEOH
EUHDVWFDQFHUGHWHFWHGE\EUHDVWVFUHHQLQJ %U-6XUJ
*LOEHUW)-6FUHHQLQJIRUEUHDVWFDQFHU%U-+RVS0HG
*RW]VFKH32OVRQ2,VVFUHHQLQJIRUEUHDVWFDQFHUZLWKPDPPRJUDSK\MXVWLILDEOH" /DQFHW

5LFNDUG07&XUUHQWLVVXHVLQPDPPRJUDSKLFEUHDVWFDQFHUVFUHHQLQJ+RVS0HG
6PDUW&5+HQGULFN5(5XWOHGJH-+HWDO%HQHILWVRIPDPPRJUDSK\VFUHHQLQJLQZRPHQDJHG
&DQFHU
:DOG1-0XUSK\30DMRU3HWDO 8.&&5PXOWLFHQWUHUDQGRPLVHG FRQWUROOHGWUDLORIRQHDQGWZRYLHZ

PDPPRJUDSK\LQEUHDVWFDQFHUVFUHHQLQJ%U0HG-
:RRGPDQ&%7KUHOIDOO$*%RJJLV&5HWDO,VWKHWKUHH\HDUEUHDVWVFUHHQLQJLQWHUYDOWRRORQJ"
2FFXUUHQFHRILQWHUYDOFDQFHUVLQWKH1+6EUHDVWVFUHHQLQJSURJUDPPHVQRUWKZHVWHUQUHJLRQ%U
0HG-
190
1HRSODVLD
0DOLJQDQWPHODQRPD
(SLGHPLRORJ\
,QFLGHQFHRIPHODQRPDLVGRXEOLQJHYHU\\HDUV
\HDULQ4XHHQVODQG$XVWUDOLD
\HDULQ6FRWODQG
GHDWKV\HDU LQ8QLWHG.LQJGRP
(GXFDWLRQLQFUHDVLQJWKHQXPEHURIWKLQWXPRXUVGHWHFWHG
1XPEHURIWKLFNWXPRXUVGHWHFWHGDQQXDOO\UHPDLQVFRQVWDQW
5LVNIDFWRUV
*LDQWPHODQRF\WLFQDHYXV
7RWDOQXPEHURIQDHYL
'\VSODVWLFQDHYXVV\QGURPH
+LVWRU\RIUHFXUUHQWVXQEXUQ
DXWRVRPDOGRPLQDQWZLWKUHGXFHGSHQHWUDQFH
&OLQLFDOIHDWXUHV
0DMRU6LJQ
&KDQJHLQVL]H
&KDQJHLQVKDSH
&KDQJHLQFRORXU
'LDPHWHU!PP
0LQRUVLJQV
,QIODPPDWLRQ
%OHHGLQJ
6HQVRU\FKDQJHV
/HVLRQXQOLNHO\WREHDPHODQRPDZLWKRXWDWOHDVWRQHPDMRUVLJQ
3DWKRORJ\
DULVHLQSUHH[LVWLQJQDHYL
+DYHLQLWLDOUDGLDODQGWKHQYHUWLFDOJURZWKSKDVH
'HWHUPLQHVJURZWKFKDUDFWHULVWLFVRIWKHWXPRXU
6XSHUILFLDOVSUHDGLQJPHODQRPD
2FFXUVLQPLGGOHDJH
)HPDOHPDOHUDWLR
&RPPRQHVWVLWHV ORZHUOHJLQZRPHQDQGWUXQNLQPDQH
8VXDOO\VOLJKWO\HOHYDWHGOHVLRQZLWKYDULDEOHFRORXU
1RGXODUPHODQRPD
$JJUHVVLYHWXPRXU
2FFXUVLQ\RXQJHUDJHJURXS
)HPDOHPDOHUDWLR
(DUO\YHUWLFDOJURZWKSKDVH
8VXDOO\XQLIRUPFRORXUHDUO\XOFHUDWLRQDQGEOHHGLQJ
191
1HRSODVLD
/HQWLJRPDOLJQDPHODQRPD
/HDVWPDOLJQDQW
8VXDOO\IRXQGRQIDFHRIHOGHUO\
/RQJUDGLDOJURZWKSKDVH
3UHVHQWVDVIODWOLJKWEURZQPDFXOH
$FUDOOHQWLJLQRXVPHODQRPD
$JJUHVVLYHWXPRXU
&RPPRQHVWW\SHIRXQGLQ1HJURDQGRULHQWDOV
2FFXUVRQVROHVRIIHHWDQGSDOPVRIKDQG
6XEXQJXDOPHODQRPDVLQFOXGHGLQWKLVJURXS
,QWUDQVLWPHWDVWDVHV
8QFRPPRQ6HHQLQWXPRXUV
$SSHDUDVLQWUDFXWDQHRXVPHWDVWDVHVRU
VDWHOOLWHV
7KRVHZLWKLQFPRISULPDU\FODVVLILHGDVSDUWRILW
8VXDOO\DVVRFLDWHGZLWKUHJLRQDOO\PSKDGHQRSDWK\
/\PSKQRGHPHWDVWDVHV
&RPPRQHVWPHWDVWDWLFSUHVHQWDWLRQ
5HGXFHVVXUYLYDOE\
SDWLHQWVZLWKUHJLRQDOO\PSKDGHQRSDWK\KDYHGLVWDQWGLVHDVH
7XPRXUWKLFNQHVV
7XPRXUWKLFNQHVVPRVWLPSRUWDQWSURJQRVWLFIDFWRUIRUORFDOGLVWDQWUHFXUUHQFHDQGVXUYLYDO
)LYH\HDUVXUYLYDOUHODWHGWR%UHVORZWKLFNQHVV
PP

PP

PP

!PP

:LWKUHJLRQDOO\PSKDGHQRSDWK\\HDUVXUYLYDOLVOHVVWKDQ
1RLQWHUQDWLRQDOO\DJUHHGFODVVLILFDWLRQRI GHILQLWLRQRIWKLQLQWHUPHGLDWHDQGWKLFNWXPRXUV
5HYLHZRIWULDOVDQGFRPSDULVRQRIWULDOVGLIILFXOW
0HODQRPDVXUJHU\
5HVHFWLRQPDUJLQV
8QWLOUHFHQWO\KLVWRU\QRW FRQWUROOHGWUDLOVKDVGLFWDWHGSUDFWLFH
+DQGOH\
+XQWHULDQ/HFWXUHEDVHGRQRQHFDVH
5HFRPPHQGHGFPPDUJLQ
%XWWHUZRUWKDQG.ODXGH
)RXQGPLFURVFRSLFO\PSKDWLFLQYDVLRQWRFP
5HFRPPHQGHGFPUHVHFWLRQPDUJLQV
2OVRQ
7ULDORIUHVHFWLRQFPYVFPUHVHFWLRQPDUJLQV
,GHQWLFDOORFDOUHFXUUHQFHUDWHEXWVWLOOUHFRPPHQGHG FPPDUJLQ
:+20HODQRPD*URXS
5DQGRPLVHGFRQWUROOHGWULDORIFPYVFPUHVHFWLRQPDUJLQV
5HVHFWLRQPDUJLQVGLGQRWLQIOXHQFHVXUYLYDO
192
1HRSODVLD
*HQHUDOO\DFFHSWHGUHVHFWLRQPDUJLQVEDVHGRQFOLQLFDODSSHDUDQFHDUH
,PSDOSDEOHOHVLRQV FPPDUJLQ
3DOSDEOHOHVLRQ
FPPDUJLQ
1RGXODUOHVLRQ
FPPDUJLQ
5HJLRQDOO\PSKDGHQHFWRP\
FOLQLFDOO\SDOSDEOHQRGHVDUHKLVWRORJLFDOO\QHJDWLYH
SDOSDEO\QRUPDOQRGHVKDYHRFFXOWPHWDVWDVHV
7KHUDSHXWLFO\PSKQRGHGLVVHFWLRQSURYLGHVUHJLRQDOFRQWURODQGSURJQRV WLFLQIRUPDWLRQ
1RLPSURYHPHQWLQVXUYLYDO
)RUWXPRXUVPPWKLFN FXUHGE\ORFDOH[FLVLRQDORQH
)RUWXPRXUV!PPWKLFN KDYHGLVWDQWPHWDVWDVHVDWSUHVHQWDWLRQ
)RUWKHVHWZRJURXSVO\PSKDGHQHFWRP\SURYLGHVQRDGGHGVXUYLYDOEHQHILW
/\PSKDGHQHFWRP\IRU
LQWHUPHGLDWH
WKLFNQHVVWXPRXUVFRQWURYHUVLDO
0RUELGLW\RIO\PSKDGHQHFWRP\
/\PSKRHGHPD
6HURPD
)XQFWLRQDOGHILFLW
:RXQG,QIHFWLRQ
3HUVLVWHQWSDLQ
$GMXYDQW7KHUDS\

3DWLHQWVDWKLJKULVNRIUHFXUUHQFHVKRXOGEHFRQVLGHU HGIRUV\VWHPLFDGMXYDQWWKHUDS\
3DWLHQWVLQFOXGHWKRVHZLWK
3ULPDU\WXPRXU!PPWKLFN
5HVHFWDEOHSRVLWLYHORFRUHJLRQDOO\PSKQRGHV
1RVWDQGDUGDGMXYDQWWKHUDS\H[LVWV
,QWHUIHURQDEKDVVKRZQSURPLVLQJUHVXOWV
6KRZQWRLQFUHDVHGLVHDVHIUHHDQGRYHUDOO VXUYLYDO
,VRODWHGOLPESHUIXVLRQ
,QWUDDUWHULDOFKHPRWKHUDS\
&RPPRQO\XVHGDJHQWV 0HOSKDODQ 71)DOSKD
8VHGZLWKK\SHUR[\JHQDWLRQ
+\SHUWKHUPLD7HPSq&
3HUIXVLRQJHQHUDOO\ODVWDERXWKRXU
8VXDOO\FRPELQHGZLWKO\PSKDGHQHFWRP\
,QGLFDWLRQV
,QWUDQVLWPHWDVWDVHV
,UUHVHFWDEOHORFDOUHFXUUHQFH
$GMXYDQWWKHUDS\IRUSRRUSURJQRVLVWXPRXUV
3DOOLDWLRQWRPDLQWDLQOLPEIXQFWLRQ
0RUELGLW\RI,/3
0RUWDOLW\
/LPERHGHPD
3HUVLVWHQWSDLQ
1HXURSDWK\
9HQRXVWKURPERVLV
6HSWLFDHPLD WKURPERF\WRSHQLD

193
1HRSODVLD
%LEOLRJUDSK\
%DOO$67KRPDV-6XUJLFDOPDQDJHPHQWRIPDOLJQDQWPHODQRPD %ULW0HG%XOO ,
+DOO31-DYLG0GH7DNDWV3*7KHUDSHXWLFWUHQGVLQFXWDQHRXVPHODQRPD +RVS0HG

.UHPHQW](7 HWDO5HJLRQDOFKHPRWKHUDS\IRUPHODQRPD $QQ6XUJ
0DFNLH50&OLQLFDOUHFRJQLWLRQRIHDUO\LQYDVLYHPDOLJQDQWPHODQRPD %U0HG-
1HDGHV*7HWDO6DIHPDUJLQVLQWKHH[FLVLRQRISULPDU\FXWDQHRXVPHODQRPD%U-6XUJ

2
5RXUNH0*(%RXUNH&5HFRPPHQGHGZLGWKRIH[FLVLRQIRUSULPDU\PDOLJQDQWPHODQRPD :RUOG-
6XUJ
6FRWW510F.D\$-(OHFWLYHO\PSKQRGHGLVVHFWLRQLQWKHPDQDJHPHQWRIPDOLJQDQWPHODQRPD %U-
6XUJ
6RRQ6-HWDO 3UHGLFWLQJVXUYLYDODQGUHFXUUHQFHLQORFDOLVHGPHODQRPD$PXOWLYDULDWHDSSURDFK
:RUOG-6XUJ
6RXWDU'67KHVXUJLFDOPDQDJHPHQWRIFXWDQHRXVPDOLJQDQWPHODQRPD,Q5HFHQWDGYDQFHV LQ
6XUJHU\(GV-RKQVRQ&'7D\ORU,&KXUFKLOO/LYLQJVWRQH/RQGRQS
6WRQH&$*RRGDFUH7(6XUJLFDOPDQDJHPHQWRIUHJLRQDOO\PSKQRGHVLQSULPDU\FXWDQHRXVPDOLJQDQW
PHODQRPD %U-6XUJ
:KRROH\%3:DOODFN0.6XUJLFDOPDQDJHPHQWRIPHODQRPD6XUJ2QFRO
194
1HRSODVLD
6NLQFDQFHUV
%DVDOFHOOFDUFLQRPD
&RPPRQHVWVNLQPDOLJQDQF\
2FFXUVRQVXQH[SRVHGVNLQ
&RPPRQHVWVLWHIDFHDERYHOLQHIURPDQJOHRIPRXWKWRHDU
3UHGLVSRVLQJIDFWRUV
;HURGHUPDSLJPHQWRVD
5DGLRWKHUDS\
%&&DUHORFDOO\LQYDVLYH7KH\UDUHO\PHWDVWDVLVH
&OLQLFDOW\SHVRI%&&
1RGXODURUQRGXORXOFHUDWLYH
&\VWLF
3LJPHQWHG
6FOHURVLQJ
&LFDWULFDO
6XSHUILFLDO
7UHDWPHQW
/RFDOH[FLVLRQZLWKFPPDUJLQV
0D\UHTXLUHIXOOWKLFNQHVVJUDIW
5DGLRWKHUDS\
0RKV6XUJHU\
&XUHUDWH!
6TXDPRXVFHOOFDUFLQRPD
6HFRQGFRPPRQHVWFXWDQHRXVPDOLJQDQF\
&RPPRQHVWVLWH IDFH KDQGV
$ULVHVIURPNHUDWLQLVLQJFHOOOD\HU
3UHGLVSRVLQJIDFWRUV
6RODU NHUDWRVHV
%RZHQ
VGLVHDVH
9LUDOZDUWV
&KURQLFXOFHUDWLRQRUVLQXVHV 0DUMROLQ
V8OFHUV
$SSHDUDVNHUDWRWLFQRGXOHZLWKXOFHUDWHGFHQWUH
'LIIHUHQWLDOGLDJQRVLV
.HUDWRDFDQWKRPD
%DVDOFHOOFDUFLQRPD
$PHODQRWLFPHODQRPDV
6NLQDGQH[DOWXPRXUV
7UHDWPHQW
:LGHORFDOH[FLVLRQ
(OHFWLYHO\PSKQRGHGLVVHFWLRQ
195
1HRSODVLD
%LEOLRJUDSK\
$ODP0 5RWQHU' &XWDQHRXVVTXDPRXVFHOOFDUFLQRPD 1(QJO-0HG
+ROW3-$0RWOH\5-7KHWUHDWPHQWRIEDVDOFHOOFDUFLQRPD &XUU3UDFW6XUJ
7HOIHU15&ROYHU*%%RZHUV3:*XLGHOLQHVIRUWKHPDQDJHPHQWRIEDVDOFHOOFDUFLQRPD %U-
'HUPDWRO
196
1HRSODVLD
%HQLJQVNLQOHVLRQVDQGPDQLIHVWDWLRQVRIV\VWHPLFGLVHDVH
3HXW]-HJKHUVV\QGURPH
,QKHULWHGDVDXWRVRPDOGRPLQDQWGLVRUGHU
&LUFXPRUDOPXFRFXWDQHRXVSLJPHQWOHVLRQVRQORZHUOLSEXFFDOPXFRVDSDODWH
+DPDUWRPDWRXV3RO\SVLQVPDOO,QWHVWLQHEXWDOVRFRORQDQGVWRPDFK
3RO\SVKDYHILEURXVDQGVPRRWKPXVFOHFRUHZLWKQRUPDO HSLWKHOLXP
9DULDEOHVL]HPPWRVHYHUDOFP
3UHVHQWVLQFKLOGKRRGZLWK*,EOHHGLQJDQDHPLDRU,QWXVVXVFHSWLRQ
0DOLJQDQWFKDQJHLQ
([WHUQDODQJXODUGHUPRLG
6HTXHVWUDWLRQ'HUPRLGOLQHGE\HSLGHUPLV
2FFXURQIDFHDWOLQHVRIIXVLRQRIHPEU\RQLFSURFHVVHV
&RPPRQHVWVLWHDURXQGH\HDWVLWHRIIXVLRQRIIURQWDOPD[LOODU\SURFHVVHV
2IWHQH[WHQGLQWRRUELWVNXOO
1HHG;UD\SULRUWRH[FLVLRQ
7ULFKROHPPDOF\VW
,QKHULWHGDVDXWRVRPDOGRPLQDQWFRQGLWLRQ
RFFXURQVFDOSDQGDUHRIWHQPXOWLSOH
'HULYHGIURPKDLUIROOLFOHV
1RWVLPSOHHSLGHUPRLGF\VWV
3\RJHQLFJUDQXORPD
1RW 3\RJHQLF 1RW *UDQXORPD

&DSLOODU\+DHPDQJLRPDZLWK"WUDXPDWLFDHWLRORJ\
%ULJKWUHGIULDEOHQRGXOH&RQWDFWEOHHGLQJ
&RPPRQHVWVLWH +DQGV
7UHDWPHQW FXUUHWWDJHRUGLDWKHUP\EXWXQXVXDOO\UHJUHVVLIXQWUHDWHG
&\OLQGURPD
%HQLJQWXPRXURIHFFULQHVZHDWJODQGV
&DQEHVROLWDU\RUPXOWLSOH
0XOWLSOHWXPRXUV 7XUEDQ7XPRXU
7UHDWPHQW /RFDOH[FLVLRQ
'HUPDWRILEURPD
%HQLJQ+LVWLRF\WRPD)!0
6PDOOILUPSLJPHQWHGQRGXOHXVXDOO\SLQNRUEURZQ
&RPPRQHVWVLWH /HJ
7UHDWPHQW /RFDOH[FLVLRQ
.HUDWRDFDQWKRPD
$HWLRORJ\XQNQRZQ0!)
5DSLGO\JURZLQJXVXDOO\RYHUZHHNV
'RPHVKDSHGZLWKNHUDWLQILOOHGFUDWHUXSWRFPGLDPHWHU
,IXQWUHDWHGLQYROXWHVRYHUPRQWKVOHDYLQJLUUHJXODUSLWWHGVFDU
'LIIHUHQWLDO'LDJQRVLV 6&&
7UHDWPHQW ([FLVLRQELRSV\
.HORLGVFDU
197
1HRSODVLD
.HORLGYV+\SHUWURSKLFVFDU
.HORLGH[WHQGVEH\RQGRULJLQDOZRXQG1RWUHJUHVVRYHUWLPH
,QFUHDVHULVNLQFRORXUHGVNLQ
&RPPRQHVWVLWH VWHUQXPRUGHOWRLGUHJLRQ
7UHDWPHQW "6WHURLGLQMHFWLRQ"&RPSUHVVLRQ
$YRLGUHH[FLVLRQDVOHVLRQVWHQGWRUHFXU
3LJPHQWHGVNLQOHVLRQV
0HODQRF\WHVDUHRIQHXURHQGRFULQHRULJLQ
0LJUDWHWRVNLQGXULQJILUVWPRQWKVRILQWUDXWHULQHGHYHORSPHQW
3URGXFHPHODQLQIURPW\URVLQH
0HODQLQVWRUHGLQPHODQRVRPHVEHIRUHEHLQJH[SRUWHGWRNHUDWLQRF\WHV
)UHFNOH LVLQFUHDVHGSURGXFWLRQE\QRUPDO QXPEHURIPHODQRF\WHV
1DHYXV LVSLJPHQWHGOHVLRQGXHWRLQFUHDVHG QXPEHURIPHODQRF\WHV
1DHYLEHOLHYHGWRHYROYHIURP-XQFWLRQDO &RPSRXQG ,QWUDGHUPDO
-XQFWLRQDOQDHYXV
8VXDOO\SUHVHQWVDVVPDOOIODWPDFXOH
2IWHQDSSHDULQFKLOGKRRG
+RPRJHQRXVEURZQEODFN
,QFUHDVHGPHODQRF\WHVLQUHWHSHJV
&RPSRXQGQDHYXV
3UHVHQWVDVUDLVHGSDSXOH
3DOHEURZQ
-XQFWLRQDOFRPSRQHQWDQGQHVWRIFHOOVLQGHUPLV
,QWUDGHUPDOQDHYXV
)OHVKFRORXUHGSDSXOH
,QFUHDVHSUHYDOHQFHLQPLGGOHDJH
1RMXQFWLRQDODFWLYLW\
2QO\LQWUDGHUPDOQHVWV
%OXHQDHYXV
'RPHVKDSHGEOXHEODFNSDSXOH
)!00LGGOHDJHG
&RPPRQHVWVLWH VFDOS IDFH
'HUPDOFROOHFWLRQRIVSLQGOHPHODQRF\WHVZLWKPHODQLQLQGHQGULWLFFHOOV
3RVVLEO\GXHWRLQFRPSOHWHPLJUDWLRQRIPHODQRF\WHVWRHSLGHUPLV
+DORQDHYXV
%HQLJQQDHYXVZLWKSDOHULP
1HHGVWREHGLIIHUHQWLDWHGIRUPPHODQRPDZLWKUHJUHVVLRQ
1DHYXVZLWKO\PSKRF\WLFLQYDVLRQDQGPHODQRF\WHGHVWUXFWLRQ
-XYHQLOHPHODQRPD 6SLW]QDHYXV
%HQLJQWXPRXU
+LVWRORJLFDOO\PLPLFPHODQRPD
5HJXODUPHODQRF\WHVZLWKDYDVFXODUVWURPD
(SLGHUPDOK\SHUWURSK\
<RXQJDGXOWV
)!0
6LQJOHSLQNGRPHGVKDSHGQRGXOH
198
1HRSODVLD
&RPPRQHVWVLWH KHDG QHFN

%LEOLRJUDSK\
%DQHUMHH$.6XUJLFDOWUHDWPHQWRIKLGUDGHQLWLVVXSSXU DWLYD%U-6XUJ
2
6XOOLYDQ67HWDO$HWLRORJ\DQGPDQDJHPHQWRIK\SHUWURSKLFDQGNHORLGVFDUV $QQ5&ROO6XUJ

199
1HRSODVLD
1DLOGLVRUGHUV
,QJURZLQJWRHQDLOV
&RPPRQSUREOHPLQDGROHVFHQWVDQG\RXQJDGXOWV
8VXDOO\DIIHFWVWKHKDOOX[EXWRWKHUQDLOVPD\EHDIIHFWHG
'XHWRODWHUDOHGJHRIQDLOFXWWLQJDQGJURZLQJLQWRDGMDFHQWVRIWWLVVXH
%DFWHULDORUIXQJDOLQIHFWLRQPD\EHVXSHULPSRVHG
$WWHPSWHGKHDOLQJPD\UHVXOWLQRYHUJUDQXODWLRQQDLOEHG
3RVVLEOHDHWLRORJLFDOIDFWRUVLQFOXGH
3RRUO\ILWWLQJVKRHV
3RRUIRRWFDUH
,QDSSURSULDWHQDLOFXWWLQJ
0DQDJHPHQW
,QWKHHDUO\VWDJHVFRQVHUYDWLYHPDQDJHPHQWVKRXOGEHDWWHPSWHG
7KLVVKRXOGLQFOXGH
5HJXODUVRDNLQJDQGZDVKLQJRIIHHW
&DUHIXOGU\LQJDIWHUZDVKLQJ
:HOOILWWLQJVKRHV
(GXFDWLRQLQWRFXWWLQJQDLOVWUDQVYHUVHO\
3RVVLEOHXVHRISOHGJHWVRIFRWWRQZRROXQGHUQDLOWRHQFRXUDJHJURZLQJRXW
6XUJHU\PD\EHUHTXLUHGLIFRQVHUYDWLYHPHDVXUHVIDLO
1DLOFDQEHUHPRYHGE\
$YXOVLRQRIWKHZKROHQDLO
:HGJHUHVHFWLRQRIWKHLQYROYHGVLGHRIWKHQDLO
5HFXUUHQFHLVFRPPRQ
,IVLPSOHDYXOVLRQIDLOVDEODWLRQRIWKHQDLOEHGVKRXOGEHFRQVLGHUHG
7KLVFDQEHDFKLHYHGHLWKHUFKHPLFDOO\RUVXUJLFDOO\
&KHPLFDODEODWLRQFDQEHDFKLHYHGZLWKSKHQRO
6XUJLFDOUHPRYDOXVXDOO\LQYROYHVD=DGHN
VSURFHGXUH
$YXOVLRQDQGSKHQROLVDWLRQLVPRUHHIIHFWLYHWKDQVXUJLFDOSURFHGXUHV
7KHQDLOVLQV\VWHPLFGLVHDVH
$EQRUPDOLWLHVRIWKHQDLOP\LQGLFDWHWKHSUHVHQFHRIV\VWHPLFGLVHDVH
([DPLQDWLRQRIWKHQDLOVLVDQLPSRUWDQWSDUWRIDQ\SK\VLFDOH[DPLQDWLRQ
&OXEELQJ
&OXEELQJLVWKHORVVRIWKHQRUPDODQJOHEHWZHHQWKHQDLODQGQDLOEHG
$VVRFLDWHGZLWK
%URQFKRJHQLFFDUFLQRPD
%URQFKLHFWDVLV
&RQJHQLWDOKHDUWGLVHDVH
/LYHUFLUUKRVLV
.RLORQ\FKLD
7KLQEULWWOHFRQFDYHQDLOV
2IWHQDVVRFLDWHGZLWKLURQGHILFLHQF\DQDHPLD
$OVRVHHPIROORZLQJQDLOWUDXPDDQGOLFKHQSODQXV
200
1HRSODVLD
6SOLQWHUKDHPRUUKDJHV
6PDOOOLQHDUVWHDNVRIEORRGLQWKHORQJD[LVRIWKHQDLO
&DXVHGE\KDHPRUUKDJHIURPYHVVHOVRIWKHQDLOEHG
'XHWRPLFURHPEROLIURPEDFWHULDOHQGRFDUGLWLV
%LEOLRJUDSK\
$QGHUVRQ-+*UHLJ-',UHODQG$-$QGHUVRQ-55DQGRPL]HGSURVSHFWLYHVWXG\RIQDLOEHG
DEODWLRQIRUUHFXUUHQWLQJURZLQJWRHQDLOV-5&ROO6XUJ(G
)XOWRQ*-2
'RQRKRH0.5H\QROGV-9.HDQH)%7DQQHU:$:HGJHUHVHFWLRQDORQHRU
FRPELQHZLWKVHJPHQWDOSKHQROL]DWLRQIRUWKHWUHDWPHQWRILQJURZLQJWRHQDLOV %U-6XUJ

5RXQGLQJ& +XOP66XUJLFDOWUHDWPHQWVIRULQJURZLQJWRHQDLOV&RFKUDQH'DWDEDVH6\VW5HY

&'
201
1HRSODVLD
3DOOLDWLYHFDUH
3DLQUHOLHI
3DLQLVWKHFRPPRQHVWDQGPRVWIHDUHGV\PSWRPDVVRFLDWHGZLWKFDQFHU
&KURQLFSDLQFDQEHFRQWUROOHGLQPRUHWKDQRISDWLHQWV
:+2DQDOJHVLDJXLGHOLQHVIRUPWKHPRVWFRPPRQWHPSODWHIRUSDLQFRQWURO
&RQVLVWVRIDWKUHHVWHSSHGODGGHU
)LJXUH :+2DQDOJHVLDODGGHU
:LWKLQFUHDVLQJSDLQLQFUHDVLQJVWUHQJWKRIDQDOJHVLDLVUHTXLUHG
2QHDFKVWHSRIWKH ODGGHUWKHPD[LPXPGRVHDQGIUHTXHQF\VKRXOGEHXVHG
'UXJVVKRXOGEHSUHVFULEHGRQDUHJXODUEDVLVQRW
DVUHTXLUHG
&RDQDOJHVLFDJHQWVRIWHQKDYHDV\QHUJLVWLFHIIHFW
0D\LQFUHDVHHIILFDF\RIDSDUWLFXODUDQDOJHVLFDJHQW
0RUSKLQH
0RVWFRPPRQO\XVHGVWURQJDQDOJHVLFLQSDOOLDWLYHFDUH
6KRXOGLQLWLDOO\EHSUHVFULEHGDVDQLPPHGLDWHUHOHDVHSUHSDUDWLRQHJRUDPRUSK
&DQEHJLYHQDVPJHYHU\IRXUKRXUV
'RVHFDQEHLQFUHDVHGHYHU\KRXUVXQWLOSDLQLVDGHTXDWHO\FRQWUROOHG
2QFHSDLQFRQWUROOHGWRWDOGDLO\GRVHFDQEHFDOFXODWHG
,PPHGLDWHUHOHDVHFDQWKHQEHVXEVWLWXWHGIRUGHOD\HGUHOHDVHSUHSDUDWLRQV
0RVWFRPPRQO\XVHGDUH067JLYHQWZLFHGDLO\RU0;/JLYHQRQFHGDLO\
,PPHGLDWHUHOHDVHSUHSDUDWLRQVFDQVWLOOEHJLYHQIRUEUHDNWKURXJK SDLQ
1RFHLOLQJH[LVWVIRUWKHPD[LPXPSHUPLVVLEOHGRVHRIPRUSKLQH
/D[DWLYHVKRXOGEHSUHVFULEHGWRSUHYHQWFRQVWLSDWLRQ
3DWLHQWVPD\DOVRUHTXLUHDQWLHPHWLF
&RPSOLFDWLRQVLQFOXGHLWFKKDOOXFLQDWLRQVGU\PRXWK
5HVSLUDWRU\GHSUHVVLRQLVUDUHO\DSUREOHP
3K\VLFDOGHSHQGHQFHPD\RFFXU
3V\FKRORJLFDOGHSHQGHQFHDQGDGGLFWLRQDUHQRWDSUREOHPLQWKHSDOOLDWLYHFDUHVHWWLQJ
,IRUDOURXWHXQDYDLODEOHFRQVLGHUVXEFXWDQHRXVGLDPRUSKLQHRUIHQWDQ\OSDWFKHV
202
1HRSODVLD
&RDQDOJHVLD
&RDQDOJHVLFVKDYHOLWWOHLQWULQVLFDQDOJHVLFDFWLYLW\
+DYHDGGLWLYHHIIHFWVWRDQDOJHVLFDJHQWV
16$,'VXVHIXOLQERQHSDLQ
$QWLFRQYXOVDQWVDQGDQWLGHSUHVVDQWVXVHIXOLQQHXURSDWKLFSDLQ
6WHURLGVLQFUHDVHZHOOEHLQJ
%HQ]RGLD]HSLQHVUHGXFHPXVFOHVSDVP
2WKHUV\PSWRPV
%RQHSDLQ
2IWHQZHOOFRQWUROOHGZLWKVLQJOHIUDFWLRQRIUDGLRWKHUDS\
16$,'PD\KDYHXVHIXOFRDQDOJHVLFHIIHFW
%LSKRVSKRQDWHVUHGXFHRVWHRFODVWLFDFWLYLW\DQGUHGXFHERQHSDLQ
1HXURSDWKLFSDLQ
2IWHQUHVLVWDQWWRWUHDWPHQW
$QWLFRQYXOVDQWVDQGDQWLGHSUHVVDQWVPD\KDYH XVHIXOHIIHFW
1HXURO\WLFEORFNVPD\EHFRQVLGHUHGLIIDLOVWRUHVSRQGWRSKDUPDFRORJLFDODJHQWV
/LYHUFDSVXOHSDLQ
16$,'RIWHQKDYHH[FHOOHQWDGGLWLYHHIIHFWLQWKLVVLWXDWLRQ
6WHURLGVFDQUHGXFHVZHOOLQJLQIODPPDWLRQDQGSDLQ
'H[DPHWKDVRQHLVXVXDOO\WKHGUXJRIFKRLFH
'\VSQRHD
1RWDOZD\VGXHWRXQGHUO\LQJPDOLJQDQF\
&RQVLGHUWUHDWPHQWRIDQ\XQGHUO\LQJLQIHFWLRQFDUGLDFIDLOXUHHWF
&DXVHVRIEUHDWKOHVVQHVVUHODWHGWRPDOLJQDQF\LQFOXGH
3OHXUDOHIIXVLRQ
/\PSKDQJLWLVFDUFLQRPDWRVLV
,QWUDSXOPRQDU\PHWDVWDVHV
&RQVWULFWLQJFKHVWZDOOGLVHDVH
$VSLUDWLRQRIDSOHXUDOHIIXVLRQRIWHQSURGXFHVV\PSWRPDWLFLPSURYHPHQW
3OHXURGHVLVZLWKWDOFRUEOHRP\FLQRQO\HIIHFWLYHGUDLQHGWRGU\QHVV
$SOHXURSHULWRQHDOVKXQWPD\SURGXFHV\PSWRPDWLFLPSURYHPHQW
6WHURLGVSURGXFHV\PSWRPDWLFLPSURYHPHQWLQWKRVHZLWKO\PSKDQJLWLVDQGLQWUDSXOPRQDU\
PHWDVWDVHV
7KHUHVSLUDWRU\GHSUHVVDQWHIIHFWRIPRUSKLQHZLOODOVRUHGXFHG\VSQRHD
1DXVHDDQGYRPLWLQJ
1DXVHDDQGYRPLWLQJLVXVXDOO\PXOWLIDFWRULDOLQRULJLQ
&DXVHVLQFOXGH
+\SHUFDOFDHPLD
/LYHUPHWDVWDVHV
&RQVWLSDWLRQ
'UXJVLGHHIIHFWV
,QWHVWLQDOREVWUXFWLRQ
0HWDFORSUDPLGHGRPSHULGRQHDQGF\FOL]LQHXVHIXOLIJDVWULFVWDVLVRULQWHVWLQDOREVWUXFWLRQ
+7 EORFNHUVHJRQGDQVHWURQXVHIXO IRUFKHPRWKHUDS\LQGXFHQDXVHD
+DORSHULGROXVHIXOLQPRUSKLQHLQGXFHGQDXVHD
&DQEHDGPLQLVWHUHGDVDFRQWLQXRXVVXEFXWDQHRXVLQIXVLRQ
203
1HRSODVLD
&RQVWLSDWLRQ
7UHDWPHQWVKRXOGEHFRQWLQXRXVDQGDQWLFLSDWRU\
2IWHQDVLGHHIIHFWRIRSLDWHDQDOJHVLD
&DQEHZRUVHQHGE\LQDFWLYLW\GHK\GUDWLRQDQGK\SHUFDOFDHPLD
2SLDWHLQGXFHGFRQVWLSDWLRQEHVWWUHDWHGZLWKFRPSRXQGSUHSDUDWLRQV
&RQWDLQERWKDVWRROVRIWHQHUDQGVWLPXODQWHJFRGDQWKUXVDWH
%LEOLRJUDSK\
'DYLV&/:HH%/5HFHQWDGYDQFHVLQSDOOLDWLYHFDUH,Q -RKQVRQ&'7D\ORU,HGV5HFHQW
DGYDQFHVLQVXUJHU\&KXUFKLOO/LYLQJVWRQH(GLQEXUJK
+DQNV*:GH&RQQR)+DQQD0HWDO0RUSKLQHLQFDQFHUSDLQPRGHVRIDGPLQLVWUDWLRQ %U0HG
+DUG\-50HGLFDOPDQDJHPHQWRIERZHOREVWUXFWLRQ%U-6XUJ
7Z\FURVV5&RUWLFRVWHURLGVLQDGYDQFHGFDQFHU%U0HG-
9HQWDIULGGD97DPEXULQL0&DUDFHQL$GH&RQQR)1DOGL)$YDOLGDWLRQVWXG\RIWKH:+2PHWKRG
IRUFDQFHUSDLQUHOLHI&DQFHU
204
1HRSODVLD
(WKLFVDQGWKHODZ
,QIRUPHGFRQVHQW
3DWLHQWVDXWRQRP\PXVWEHUHVSHFWHGDWDOOWLPHV
3DWLHQWVFDQGHWHUPLQHZKDWWUHDWPHQWWKDWWKH\DUHRUDUHQRWZLOOLQJWRUHFHLYH
7KH\KDYHWKHULJKWWRGHFLGHQRWWRXQGHUJRDWUHDWPHQW
7KLVFRXOGDGYHUVHO\DIIHFWRXWFRPHRUUHVXOWLQWKHLUGHDWK
3DWLHQWVPXVWEHJLYHQVXIILFLHQWLQIRUPDWLRQWRPDNHWKHVHGHFLVLRQV
2EWDLQLQJLQIRUPHGFRQVHQWLVQRWDQLVRODWHGHYHQW
,WLQYROYHVDFRQWLQXLQJGLDORJXHEHWZHHQGRFWRUDQGSDWLHQW
7\SHVRIFRQVHQW
([SUHVVFRQVHQW RUDORUZULWWHQ
1HHGHGIRUPRVWLQYHVWLJDWLRQVRUWUHDWPHQWVZLWKULVNVDWWDFKHG
,PSOLHGFRQVHQW
1RQZULWWHQFRQVHQWZKHQSDWLHQWFRRSHUDWHVZLWKDSDUWLFXODUDFWLRQ
HJSK\VLFDOH[DPLQDWLRQ
,QIRUPDWLRQUHTXLUHG
:KHQREWDLQLQJFRQVHQWSDWLHQWVVKRXOGEHLQIRUPHGRI
'HWDLOVRIGLDJQRVLVDQGSURJQRVLVZLWKDQGZLWKRXWWUHDWPHQW
8QFHUWDLQWLHVDERXWWKHGLDJQRVLV
2SWLRQVDYDLODEOHIRUWUHDWPHQW
7KHSXUSRVHRIDSURSRVHGLQYHVWLJDWLRQRUWUHDWPHQW
7KHOLNHO\EHQHILWVDQGSUREDELOLW\RIVXFFHVV
$Q\SRVVLEOHVLGHHIIHFWV
$UHPLQGHUWKDWWKHSDWLHQWVFDQFKDQJHWKHLUPLQGDWDQ\VWDJH
$UHPLQGHUWKDWWKHSDWLHQWVKDVWKHULJKWWRDVHFRQGRSLQLRQ
$OOTXHVWLRQVVKRXOGEHDQVZHUHGKRQHVWO\
,QIRUPDWLRQVKRXOGQRWEHZLWKKHOGWKDWPLJKWLQIOXHQFHWKHGHFLVLRQPDNLQJSURFHVV
3DWLHQWVVKRXOGQRWEHFRHUFHG
7KHSHUVRQZKRREWDLQVFRQVHQWPXVWEH
6XLWDEO\WUDLQHGDQGTXDOLILHG
+DYHVXIILFLHQWNQRZOHGJHRIWKHSURSRVHGWUHDWPHQWDQGLWVULVNV
6SHFLILFSUREOHPV
1RRQHHOVHFDQPDNHDGHFLVLRQRQEHKDOIRIDFRPSHWHQWDGXOW
1RRQHFDQJLYHRUZLWKKROGFRQVHQWRQEHKDOIRIDPHQWDOO\LQFDSDFLWDWHGSDWLHQW
&RXUWDSSURYDOVKRXOGEHREWDLQHGIRUFRQWURYHUVLDOWUHDWPHQWVQRWGLUHFWHGDWDPHWDOGLVRUGH U
,QDQHPHUJHQF\DOLIHVDYLQJSURFHGXUHFDQEHSHUIRUPHGZLWKRXWFRQVHQW
$OODFWLRQVPXVWKRZHYHUEHMXVWLILDEOHWRRQHVSHHUV
&KLOGUHQ
$WDJHRI\HDUVDFKLOGFDQEHSUHVXPHGWRKDYHWKHFDSDFLW\WRGHFLGHRQWUHDWPHQW
%HORZWKHDJHRI\HDUVWKH FKLOGPD\KDYHWKHFDSDFLW\WRGHFLGHGHSHQGLQJRQWKHLUDELOLW\
WRXQGHUVWDQGZKDWWKHWUHDWPHQWLQYROYHV
,IDFRPSHWHQWFKLOGUHIXVHVWUHDWPHQWDSHUVRQZLWKSDUHQWDOUHVSRQVLELOLW\PD\DXWKRULVH
WUHDWPHQWZKLFKLVLQWKHFKLOG
VEHVWLQWHUHVWV
205
1HRSODVLD
7KH&RURQHU
7KHUHDUHDSSUR[LPDWHO\GHDWKVSHU\HDULQ(QJODQGDQG:DOHV
&DXVHRIGHDWKLVFHUWLILHGE\WKHDWWHQGLQJGRFWRULQFDVHV
2IGHDWKVUHIHUUHGWRWKHFRURQHU
DUHUHIHUUHGE\GRFWRUV
E\WKHSROLFH
E\ WKHUHJLVWUDURIELUWKVPDUULDJHVDQGGHDWKV
&RURQHUVKROGLQTXHVWIRUDERXWRIGHDWKVWKDWWKH\FHUWLI\
5HIHUUDOWRWKHFRURQHU
$GHDWKVKRXOGEHUHIHUUHGWRWKHFRURQHULI
7KHFDXVHRIGHDWKLVXQNQRZQ
7KHGHFHDVHGZDVQRWVHHQE\WKHFHUWLI\LQJGRFWRUHLWKHUDIWHUGHDWKRUZLWKLQGD\VRI
GHDWK
7KHGHDWKZDVYLROHQWXQQDWXUDORUVXVSLFLRXV
7KHGHDWKPD\EHGXHWRDQDFFLGHQWZKHQHYHULWRFFXUUHG
7KHGHDWKPD\EHGXHWRVHOIQHJOHFWRUQHJOHFWE\RWKHUV
7KHGHDWKPD\EHGXHWRDQLQGXVWULDOGLVHDVHRUUHODWHGWRWKHGHFHDVHGHPSOR\PHQW
7KHGHDWKPD\EHGXHWRDQDERUWLRQ
7KHGHDWKRFFXUUHGGXULQJDQRSHUDWLRQRUEHIRUHUHFRYHU\IURPWKHHIIHFWVRIDQ
DQDHVWKHWLF
7KHGHDWKPD\EHGXHWRVXLFLGH
7KHGHDWKRFFXUUHGGXULQJRUVKRUWO\DIWHUGHWHQWLRQLQSROLFHRUSULVRQFXVWRG\
206
1HRSODVLD
&OLQLFDODXGLW
7KHV\VWHPDWLFFULWLFDODQDO\VLVRIWKHTXDOLW\RIPHGLFDOFDUHLQFOXGLQJWKHSURFHGXUHVXVHG
IRUGLDJQRVLVDQGWUHDWPHQWWRKHOSWRSURYLGHUHDVVXUDQFHWKDWWKHEHVWTXDOLW\RIVHUYLFH
LVEHLQJDFKLHYHGKDYLQJUHJDUGWRWKHDYDLODEOHUHVRXUFHV
0HGLFDODXGLW $VVHVVPHQWE\SHHUUHYLHZRIPHGLFDOFDUH
&OLQLFDODXGLW $VVHVVPHQWRIWRWDOFDUH
0HGLFDODXGLW
,QYROYHVDV\VWHPDWLFDSSURDFK
+LJKOLJKWVRSSRUWXQLWLHVIRULPSURYHPHQW
3URYLGHVPHFKDQLVPIRUFKDQJH
,VGLIIHUHQWIURPFDVHSUHVHQWDWLRQPRUELGLW\ PRUWDOLW\PHHWLQJV
&OLQLFDODXGLWFDQDVVHVV
6WUXFWXUH W\SHRIUHVRXUFHV
3URFHVV ZKDWLVGRQHWRSDWLHQWV
2XWFRPH WKHUHVXOWRIFOLQLFDOLQWHUYHQWLRQV
$XGLWF\FOH
7KHDXGLWF\FOHLQYROYHV
2EVHUYDWLRQRIH[LVWLQJSUDFWLFH
7KHVHWWLQJRIVWDQGDUGV
&RPSDULVRQEHWZHHQREVHUYHGDQGVHWVWDQGDUGV
,PSOHPHQWDWLRQRIFKDQJH
5HDXGLWRIFOLQLFDOSUDFWLFH
$XGLWWHFKQLTXHV
%DVLFFOLQLFDODXGLW WKURXJKSXWPRUELGLW\PRUWDOLW\
,QFLGHQWUHYLHZ FULWLFDOLQFLGHQWUHSRUWLQJ
&OLQLFDOUHFRUGUHYLHZ
&ULWHULRQDXGLW UHWURVSHFWLYHDQDO\VLVMXGJHGDJDLQVWFKRVHQFULWHULD
$GYHUVHRFFXUUHQFHVFUHHQLQJ
)RFXVHGDXGLWVWXGLHV VSHFLILFRXWFRPH
*OREDODXGLW FRPSDULVRQEHWZHHQXQLWV
1DWLRQDOVWXGLHV HJ1&(32'
207
1HRSODVLD
6WDWLVWLFV IRUVXUJHRQV
7\SHVRIGDWD
%HIRUHGDWDDQDO\VLVFDQEHSHUIRUPHGQHHGWRLGHQWLI\W\SHRIGDWDSUHVHQWHG
'DWDFDQEHTXDQWLWDWLYHRUFDWHJRULFDO
4XDQWLWDWLYHDQGFRQWLQXRXV HJKHLJKWZHLJKWEORRGSUHVVXUH
4XDQWLWDWLYHDQGGLVFUHWH HJQXPEHURIFKLOGUHQ
&DWHJRULFDODQGRUGLQDO HJ*UDGHRIWXPRXU
&DWHJRULFDODQGQRPLQDO HJ0DOHIHPDOHEORRGJURXS
'HVFULSWLRQRITXDQWLWDWLYHGDWD
'DWDFDQEHGHVFULEHGE\D
PHDVXUHRIORFDWLRQ
0HGLDQ PLGSRLQWRIYDULDEOHVDERYHDQGRIYDULDEOHVEHORZ
0RGH PRVWFRPPRQYDULDEOH
0HDQ WKHDYHUDJHLHWKHVXPRIYDULDEOHGLYLGHGE\WKHQXPEHU
'DWDFDQDOVREHGHVFULEHGE\D
PHDVXUHRIYDULDWLRQ
5DQJH GLVWULEXWLRQEHWZHHQPD[LPXPDQGPLQLPXPYDOXH
,QWHUTXDUWLOHUDQJH GLVWULEXWLRQEHWZHHQILUVWDQGWKLUGTXDUWLOH
6WDQGDUGGHYLDWLRQ GLVWULEXWLRQDURXQGPHDQLQD
QRUPDOO\
GLVWULEXWHGSRSXODWLRQ
)LJXUH 1RUPDOGLVWULEXWLRQ
208
1HRSODVLD
)LJXUH 6NHZHGGLVWULEXWLRQ
&DOFXODWLRQRIVDPSOHVL]H
6DPSOHVL]HQHHGHGWRWHVWDK\SRWKHVLVGHSHQGVRQIRXU IDFWRUV
([SHFWHGGLIIHUHQFHLQPHDQVEHWZHHQWKHWZRJURXSV
9DULDELOLW\RIWKHGDWD
3RZHURIWKHVWXG\ SUREDELOLW\WKDWDQ\GLIIHUHQFHLVUHDOXVXDOO\
/HYHORIVLJQLILFDQFHDFFHSWHGXVXDOO\
7\SH,DQG7\SH,,HUURUV
7\SH, HUURUD UHMHFWLRQRIQXOOK\SRWKHVLVZKHQLWLVLQIDFWWUXH

1RGLIIHUHQFHLVSUHVHQWEHWZHHQWKHVDPSOHV
7KHVWDWLVWLFDOPHWKRGXVHGLGHQWLILHGDGLIIHUHQFH
7\SH,,HUURUE UHMHFWLRQRIQXOOK\SRWKHVLVZKHQGLIIHUHQFHEHWZHHQJURXSVH[LVWV
$GLIIHUHQFHLVSUHVHQWEHWZHHQWKHVDPSOHV
7KHVWDWLVWLFDOPHWKRGXVHGIDLOHGWRLGHQWLI\LW
&KRLFHRIVWDWLVWLFDOWHVW
3ULRUWRDQDO\VLQJGDWDQHHGWRGHILQHWKHK\SRWKHVLVEHLQJWHVWHG
,IQRK\SRWKHVLVSURSRVHGWKHQQRVWDWLVWLFDOWHVWFDQEHVHOHFWHG
$OVRQHHGWRGHFLGHZKHWKHUPDWFKHGSDLUHGRULQGHSHQGHQW
$OVRQHHGWRGHILQHLQSXWDQGRXWSXWYDULDEOHV
%RWKYDULDEOHFDQEHFDWHJRULFDORUTXDQWLWDWLYH
209
1HRSODVLD
7DEOH 6WDWLVWLFDOWHVWVIRUSDLUHGRUPDWFKHGREVHUYDWLRQV
9DULDEOH
1RPLQDO
2UGLQDO
4XDQWLWDWLYHQRQQRUPDO
4XDQWLWDWLYHQRUPDO
7HVW
0F1HPDU
:LOFR[RQ
:LOFR[RQ
3DLUHGWWHVW
7DEOH &KRLFHRIVWDWLVWLFDOWHVWIRULQGHSHQGHQWREVHUYDWLRQVDQGFDWHJRULFDORXWFRPH
YDULDEOHV,QSXWYDULDEOHVDUHOLVWHGLQILUVWFROXPQ
1RPLQDO
&DWHJRULFDO
2UGLQDO
4XDQWLWDWLYHGLVFUHWH
4XDQWLWDWLYH QRQ
QRUPDO
4XDQWLWDWLYH
QRUPDO
1RPLQDO
&KLVTXDUHGRU)LVKHU
V
&KLVTXDUHG
0DQQ:KLWQH\
/RJLVWLFUHJUHVVLRQ
/RJLVWLFUHJUHVVLRQ
&DWHJRULFDO
&KLVTXDUHG
&KLVTXDUHG
2UGLQDO
&KLVTXDUHGRU0DQQ
:KLWQH\
.UXVNDO:DOOLV
6SHDUPDQUDQN
/RJLVWLFUHJUHVVLRQ
7DEOH &KRLFHRIVWDWLVWLFDOWHVWIRULQGHSHQGHQWREVHUYDWLRQVDQGTXDQWLWDWLYHRXWFRPH
YDULDEOHV,QSXWYDULDEOHVDUHOLVWHG LQILUVWFROXPQ
1RPLQDO
4XDQWLWDWLYH
GLVFUHWH
0DQQ:KLWQH\
4XDQWLWDWLYHGLVFUHWH
6SHDUPDQUDQN
&DWHJRULFDO
2UGLQDO
4XDQWLWDWLYH QRQ
QRUPDO
4XDQWLWDWLYH
QRUPDO
.UXVNDO:DOOLV
6SHDUPDQUDQN
4XDQWLWDWLYH QRQ
QRUPDO
0DQQ:KLWQH\RU
ORJUDQN
.UXVNDO:DOOLV
6SHDUPDQUDQN
6SHDUPDQUDQN
3HDUVRQRU
6SHDUPHQUDQN
/LQHDUUHJUHVVLRQ
4XDQWLWDWLYH
QRUPDO
6WXGHQW
VWWHVW
$129$
6SHDUPDQUDQNRU
OLQHDUUHJUHVVLRQ
6SHDUPDQUDQNRU
OLQHDUUHJUHVVLRQ
3HDUVRQRU
6SHDUPDQUDQN
/LQHDUUHJUHVVLRQ
%LEOLRJUDSK\
210
1HRSODVLD
'HVLJQDQGDQDO\VLVRIFOLQLFDOWULDOV
3ULPDU\UHVHDUFKLQFOXGHV
$QLPDORUYROXQWHHUH[SHULPHQWV
&OLQLFDOWULDOV
6XUYH\V
6HFRQGDU\UHVHDUFKLQFOXGHV
6\VWHPDWLFUHYLHZDQGPHWDDQDO\VHV
*XLGHOLQHV
'HFLVLRQDQDO\VHV
(FRQRPLFDQDO\VHV
+LHUDUFK\RIHYLGHQFH
7KHVWUHQJWKRIDVWXG\GHSHQGVRQLWVGHVLJQ
$KLHUDUFK\RIHYLGHQFHH[LVWVZLWKGHFUHDVLQJVWUHQJWKDVIROORZV
6\VWHPDWLFUHYLHZDQGPHWDDQDO\VLV
5DQGRPLVHGFRQWUROOHGWULDOV ZLWKGHILQLWLYHUHVXOWV
5DQGRPLVHGFRQWUROOHGWULDOVZLWKQRQGHILQLWLYHUHVXOWV
&RKRUWVWXGLHV
&DVHFRQWUROVWXGLHV
&URVVVHFWLRQDOVXUYH\V
&DVHUHSRUWV
7DEOH /HYHOVRI(YLGHQFH
/HYHO
,D
,E
,,D
,,E
,,,
,9
'HVFULSWLRQ
(YLGHQFHIURPDPHWDDQDO\VLVRIUDQGRPLVHGFRQWUROOHGWULDOV
(YLGHQFHIURPDWOHDVWRQHUDQGRPLVHGFRQWUROOHGWULDO
(YLGHQFHIURPDWOHDVWRQHZHOOGHVLJQHGFRQWUROOHGVWXG\ZLWKRXWUDQGRPLVDWLRQ
(YLGHQFHIURPDWOHDVWRQHZHOOGHVLJQHGTXDVLH[SHULPHQWDOVWXG\
(YLGHQFHIURPZHOOGHVLJQHGQRQH[SHULPHQWDOGHVFULSWLYHVWXGLHVVXFKDV
FRPSDUDWLYHVWXGLHVFRUUHODWLRQVWXGLHVRUFDVHVWXGLHV
(YLGHQFHIURPH[SHUWFRPPLWWHHUHSRUWVRURSLQLRQVRUFOLQLFDOH[SHULHQFHVRI
UHVSHFWHGDXWKRULWLHV
4XHVWLRQVUHJDUGLQJ
'UXJWUHDWPHQWRUPHGLFDOLQWHUYHQWLRQVUHTXLUHDGRXEOH EOLQGUDQGRPLVHGFRQWUROOHGWULDO
3URJQRVLVUHTXLUHORQJLWXGLQDOFRKRUWVWXGLHV
&DXVDWLRQUHTXLUHFRKRUWRUFDVHFRQWUROVWXGLHV
3XUSRVHRIFOLQLFDOWULDOV
&OLQLFDOWULDOVFRQGXFWKXPDQH[SHULPHQWV
7KUHHIXQGDPHQWDOSULQFLSOHVDSSO\
7KHWULDOPXVWDGGUHVVDOHJLWLPDWHTXHVWLRQ
7KHSDWLHQWPXVWEHLQIRUPHGDQGZLOOLQJWRSDUWLFLSDWH
7KHSDWLHQWPD\GHFOLQHHQWU\RUZLWKGUDZDWDQ\VWDJH
7KHUHDUHFOLQLFDOWULDOVWUXFWXUHV
211
1HRSODVLD
3KDVHVWXG\
3URYLGHVEDVLFSKDUPDFRORJLFDODQGWR[LFRORJ\LQIRUPDWLRQ
1RWDWHVWRIWKHUDSHXWLFHIILFDF\
3HUIRUPHGRQHLWKHU
+HDOWK\YROXQWHHUV
3DWLHQWVZKRVHGLVHDVHKDVSURJUHVVHGRQDOODYDLODEOHWUHDWPHQWV
3KDVHVWXG\
8VHGWRLGHQWLI\GRVHUDQJHRIDSDUWLFXODUGUXJ
6DPSOHVL]HLVXVXDOO\DERXWSDWLHQWV
3DWLHQWVXVXDOO\KDYHHQGVWDJHGLVHDVH
1RWXVXDOO\UDQGRPLVHGDQGGUXJFRPELQDWLRQVPD\EHWHVWHG
3KDVHVWXG\
5DQGRPLVHGWULDOGHVLJQHGWRFRPSDUHHIIHFWVRIGLIIHUHQWWUHD WPHQWV
2QHWUHDWPHQWRSWLRQVKRXOGEHWKHEHVWFXUUHQWO\DYDLODEOH
2XWFRPHPHDVXUHVXVXDOO\LQFOXGHVXUYLYDOGLVHDVHIUHHVXUYLYDOUHVSRQVHDQGWR[LFLW\
8VXDOO\LQYROYHODUJHQXPEHUVRISDWLHQWV
0D\LQYROYHGLIIHUHQWLQVWLWXWLRQVLQVHYHUDOFRXQWULHV
3KDVHVWXG\
/HVVFRPPRQO\XVHG
$LPHGWRHYDOXDWHWKHORQJWHUPRXWFRPHRIHVWDEOLVKHGWKHUDSLHV
2IWHQUHJDUGHGDVDSRVWPDUNHWLQJVWXG\
5DQGRPLVHGFRQWUROOHGWULDOV
,Q5&7SDUWLFLSDQWVDUHUDQGRPO\DOORFDWHGWRRQHLQWHUYHQWLRQRUDQRWKHU
%RWKJURXSVDUHIROORZHGXSIRUDVSHFLILHGSHULRG
*URXSVDQDO\VHGLQWHUPVRIRXWFRPHGHILQHGDWWKHRXWVHW
,IJURXSVVLPLODUDWRXWVHWDQ\GLIIHUHQFHVKRXOGEHGXHWRLQWHUYHQWLRQ
$GYDQWDJHVRI5&7V
$OORZVULJRURXVHYDOXDWLRQRIDVLQJOHYDULDEOHLQDGHILQHGSDWLHQWJ URXS
3RWHQWLDOO\HUDGLFDWHVELDVE\FRPSDULQJWZRRUPRUHLGHQWLFDOJURXSV
$OORZVIRUPHWDDQDO\VLV
'LVDGYDQWDJHVRI5&7V
([SHQVLYHDQGWLPHFRQVXPLQJ
2IWHQKDYHWRRIHZSDWLHQWVRUWRRVKRUWDIROORZXSSHULRG
6XUURJDWHHQGSRLQWVDUHRIWHQXVHGLQSUHIHUHQFHWRFOLQLFDORXWFRPHPHDVXUHV
2IWHQLPSHUIHFWUDQGRPLVDWLRQ
2IWHQQRWDOOHOLJLEOHSDWLHQWVDUHUDQGRPLVHG
)DLOXUHWREOLQGDVVHVVRUVWRUDQGRPLVDWLRQVWDWXVRISDWLHQWV
&RKRUWVWXGLHV
&RKRUWVWXGLHVFRPSDUHJURXSVH[SRVHGWRGLIIHUHQWIDFWRUV
)ROORZHGXSWRVHHZKHWKHUWKHUHLVDGLIIHUHQFHLQRXWFRPH
8VXDOO\XVHGWRVWXG\GLVHDVHDHWLRORJ\
$OVRXVHGWRDVVHVVGLVHDVHSURJQRVLV
212
1HRSODVLD
&DVHFRQWUROVWXGLHV
&DVHFRQWUROVWXGLHVPDWFKSDWLHQWVZLWKDGLVHDVHWRFRQWUROV
'DWDWKHQFROOHFWHGUHWURVSHFWLYHO\WRILQGDGLIIHUHQFHEHWZHHQWKHJURXSV
:K\DUHSDSHUVUHMHFWHGIRUSXEOLFDWLRQ"
7KHVWXG\GRHVQRWDGGUHVVDQLPSRUWDQWVFLHQWLILFLVVXH
7KHVWXG\ZDVQRWRULJLQDO LWKDGEHHQGRQHEHIRUH
7KHVWXG\GLGQRWDGGUHVVWKHDXWKRUVK\SRWKHVLV
$GLIIHUHQWW\SHRI VWXG\VKRXOGKDYHEHHQGRQH
7KHVDPSOHVL]HZDVWRRVPDOO
7KHVWXG\ZDVXQFRQWUROOHG
7KHVWDWLVWLFDODQDO\VLVZDVLQDSSURSULDWHRULQFRUUHFW
7KHDXWKRUVGUHZXQMXVWLILHGFRQFOXVLRQVIURPWKHLUGDWD
7KHSDSHUVZDVSRRUO\ZULWWHQDQGLQFRPSUHKHQVLEOH
%LEOLRJUDSK\
*UHHQKDOJK7+RZWRUHDGDSDSHUJHWWLQJ\RXEHDULQJVGHFLGLQJZKDWWKHSDSHULVDERXW

%U0HG-
213
,QGH[
*ORVVDU\RIGHULYDWLRQRIDQDWRPLFDODQGSDWKRORJLFDOWHUPV
/ /DWLQ*U *UHHN
7HUP
'HULYDWLRQ
$QWUXP/
&DYH
$FHWDEXOXP/
$]\JRV*U
%UDQFKLDO*U
)DOFLIRUP/
*XEHUQDFXOXP/
+DHPRUUKRLG*U
,QFXV/
/XPEULFDO/
0LOLDU\/
3HOYLV/
3KDODQ[*U
3RQV/
3KLPRVLV/
3RUWD/
3\ORUXV*U
6DOSLQ[*U
6FURWXP/
6HWRQ/
6WDSHV/
6WRPD*U
9LOORXV/
9DJXV/
9LQHJDUFXS
8QSDLUHG
*LOOV
6LFNOH
5XGGHU
)ORZRIEORRG
$QYLO
(DUWKZRUP
0LOOHWVHHG
%DVLQ
/LQHRIVROGLHUV
%ULGJH
0X]]OH
(QWUDQFH
*DWHNHHSHU
7UXPSHW
%DJ
+RUVHKDLU
6WLUUXS
0RXWK
7XIWRIKDLU
:DQGHULQJ
214
,QGH[
,QGH[
$
$%2V\VWHP
$,'6
$LUOHDN
$QDHPLD
$QDHVWKHVLD
VSLQDO HSLGXUDO
$3$&+(,,VFRUH
$UWLILFLDOYHQWLODWLRQ
$6$*UDGLQJ
DWHOHFWDVLV
$WHOHFWDVLV
$7/6
%
%ORRGJURXSV
%ORRGSURGXFWV
%UDLQVWHPGHDWK
%5&$JHQHV
%UHDVWFDQFHU
D[LOODU\VXUJHU\
FKHPRWKHUDS\
JHQHWLFV
SULPDU\FKHPRWKHUDS\
SURJQRVWLFIDFWRUV
VFUHHQLQJ
VXUJHU\
%UHDVWF\VWV
%UHDVWLPDJLQJ
%UHDVW,QIHFWLRQV
%UHDVWSDLQ
%UHDVWXOWUDVRXQG
%URQFKRSOHXUDOILVWXOD
%XOOHWZRXQGV
%XUQV
%XUVWDEGRPHQ
&
&DQFHUJHQHWLFV

&DUFLQRPD
EDVDOFHOO
VTXDPRXVFHOO
&DUGLDFDUUHVW
&DUGLDFRXWSXW
&HOOXOLWLV
&KHPRWKHUDS\
&KHVWGUDLQV
&OLQLFDODXGLW
&OLQLFDOWULDOV
&ORVWULGLXPGLIILFOH
&ORWWLQJFDVFDGH
&OXEELQJ
&RDQDOJHVLD
&RQWUDFWXUHV
&ULFRWK\URLGRWRP\
'
'HSRODULVLQJDJHQWV
'LDEHWHVPHOOLWXV
'LVLQIHFWLRQ
'LVVHPLQDWHGLQWUDYDVFXODUFRDJXODWLRQ
'XNHVVWDJH
(
(QGRWUDFKHDOLQWXEDWLRQ
)
)DFLDO LQMXULHV
)LEURDGHQRPDV
)UDFWLRQDWLRQ
)UDJPHQWLQMXULHV
*
*DVJDQJUHQH
*.,LQIXVLRQ
*\QDHFRPDVWLD
+
+DHPDWRPD
H[WUDGXUDO
VXEGXUDO
+DHPRSKLOLD
+DHPRVWDVLV
+DORWKDQH
+DVVRQWHFKQLTXH
+HDGLQMXULHV
+HSDWLWLV%
+,9LQIHFWLRQ
+RUPRQHUHSODFHPHQWWKHUDS\
+\SHUNDODHPLD
+\SHUWURSKLFVFDUV
,
,QGXFWLRQRIDQDHVWKHVLD
215
,QGH[
,QIRUPHGFRQVHQW
,QJURZLQJWRHQDLOV
,QMXU\VHYHULW\VFRUH
,QWUDFUDQLDODEVFHVV
,QWUDRVVHRXVLQIXVLRQ
,QWUDYHQRXVIOXLGV
,VRIOXUDQH
.
.HORLGVFDU

.HORLGVFDUV
.RLORQ\FKLD
/
/DVHUV
/D[DWLYHV
/H)RUWIUDFWXUHV
/LJQRFDLQH
/RFDODQDHVWKHVLD
0
0DLQWHQDQFHRIDQDHVWKHVLD
0DPPRJUDSK\
0DVWDOJLD
F\FOLFDO
QRQF\FOLFDO
0HODQH\
VV\QHUJLVWLFJDQJUHQH
0RUSKLQH
0XVFOHUHOD[DQWV
0\RFXWDQHRXVIODSV
1
1HFURWLVLQJIDVFLWLV
1LWURXVR[LGH
1RQGHSRODULVLQJDJHQWV
1XWULWLRQ
HQWHUDO
SDUHQWHUDO
2
2UDOFRQWUDFHSWLYH SLOO

2[\JHQWKHUDSHXWLFDJHQWV
3
3KDUPDFRORJ\
3K\OORLGHVWXPRXU
3LJPHQWHGVNLQOHVLRQV
3QHXPRQLD
3QHXPRSHULWRQHXP
3QHXPRWKRUD[
3RVWRSHUDWLYHSDLQ
3UHPHGLFDWLRQ
3UHRSHUDWLYHIDVWLQJ
3URSRIRO
3URVWKHWLFKHDUWYDOYHV
3XOVHR[LPHWU\
5
5HQDOIDLOXUH
5HVSLUDWRU\IDLOXUH
5HVXVFLWDWLRQ
5HYLVHGWUDXPDVFRUH
5KHVXVV\VWHP
6
6FDUV
6FUHHQLQJ
6HOGLQJHUWHFKQLTXH
6HSVLV
6KRFN
K\SRYRODHPLF
6LFNOHFHOODQDHPLD
6,56
6NLQIODSV
6NLQJUDIWV
6NLQSUHSDUDWLRQ
6SLQDODEVFHVV
6SLQDOLQMXULHV
6SOHQLFLQMXU\
6WDWLVWLFV
6WHULOLVDWLRQ
6X[DPHWKRQLXP
6ZDQ*DQ]FDWKHWHU
7
7DPR[LIHQ
7HWDQXV
7KH&RURQHU
7KLRSHQWRQH
7LVVXHH[SDQVLRQ
710V\VWHP
7RXUQLTXHWV
7UDXPD
UHQDO
75,66PHWKRGRORJ\
7XEHUFXORVLV
9
9HFXURQLXP
9HQRXVDFFHVV
9HQRXVFXWGRZQ
9HQWLODWLRQ
9HUHVVQHHGOH
:
216
,QGH[
:RXQGFORVXUH
:RXQGGUHVVLQJV
:RXQGKHDOLQJ
:RXQGLQIHFWLRQ
217

Core Revision Notes Frcs

Uploaded by

Document Information

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

Core Revision Notes Frcs

Uploaded by

Copyright:

Available Formats

3RVWJUDGXDWH

35(23(5$7,9(0$1$*(0(17 21( 

*/266$5<2)'(5,9$7,212)$1$720,&$/$1' 3$7+2/2*,&$/7(506 

6WRSORQJDFWLQJVXOSKRQ\OXUHDV HJFKORUSURSDPLGH KRXUVSULRUWRVXUJHU\

1RUPDOKDHPRJORELQKDV[. DQG[ FKDLQV

+RUDQ7& *D\QHV53 0DUWRQH:- -DUYLV:5 (PRQ7* &'&GHILQLWLRQVRIQRVRFRPLDOVXUJLFDO

+ROODQGHU-(6LQJHU$-/DFHUDWLRQPDQDJHPHQW $QQ(PHUJ0HG 

.HOO\&33RWKRXODNLV&/DPRQW-7&ORVWULGLXPGLIILFOHFROLWLV 1 (QJO-0HG 

&DUO36WDUN/,QGLFDWLRQVIRUWKHVXUJLFDOPDQDJHPHQWRIJHQLWRXULQDU\WXEHUFXORVLV :RUOG- 6XUJ

$EUDKDP1 'RXGOH0 &DUVRQ3 2SHQYHUVXVFORVHGWUHDWPHQWRIDEVFHVVHVDFRQWUROOHGFOLQLFDOWULDO

%LVQR$/6WHYHQV'/6WUHSWRFRFFDOLQIHFWLRQVRIVNLQDQGVRIWWLVVXHV 1(QJO-0HG 

)UDVHU,,QWHVWLQDODQDVWRPRVLVZLWKDVNLQVWDSOHUDVDIHDQGHIILFLHQWPHWKRGLQK XPDQV %U-6XUJ

3RWHQWDQDHVWKHWLFEXWSRRUDQDOJHVLFDJHQW 0$& 

3RWHQWDQDHVWKHWLFEXWSRRUDQDOJHVLFDJHQW 0$& 

:HDNDQDHVWKHWLFDJHQW 0$& 

$LJQHU1)LDONR& )ULW]$:LQNV2=RFK*&RPSOLFDWLRQVLQWKHXVHRIGLDWKHUP\ %XUQV

(\HUV3$VKOH\66FRWW'-7RXUQLTXHWVLQDUWHULDOE\SDVVVXUJHU\ (XU-(QGRYDVF6XUJ 

%RQMHU+- +D]HEURHN(- .D]HPLHU* *LXIIULGD0& 0HLMHU:6 /DQJH-) 2SHQYHUVXVFORVHG

/XFDV6:$UUHJXL0(0LQLPDOO\LQYDVLYHVXUJHU\IRULQJXLQDOKHUQLD :RUOG-6XUJ 

/XFN$+HQVPDQ&+HZHWW3/DSDURVFRSLFFROHFWRP\IRUFDQFHUDUHYLHZ $XVW1=-6XUJ 

3DWHUVRQ%URZQ6(PHUJHQF\ODSDURVFRSLFVXUJHU\%U-6XUJ  

$FTXLUHGLPPXQRGHILFLHQF\V\QGURPH $,'6 ZDVILUVWUHFRJQLVHGLQWKH86$LQWKHV

$SSOHWRQ*91 /HDSHU'-7KH,QIHFWHG:RXQG+RVSLWDO8SGDWH 

$FWLYDWHGSDUWLDOWKURPERSODVWLQWLPH $337 LVSURORQJHG

6HYHUH XVXDOO\JUDPQHJDWLYHRUPHQLQJRFRFFDO LQIHFWLRQ

/XGODP&$7UHDWPHQWRIKDHPRSKLOLD%U-+DHPDWRO  6XSSO 

6HQQR6/3HFKHW/%LFN5/'LVVHPLQDWHGLQWUDYDVFXODUFRDJXORSDWK\ ',& SDWKRSK\VLRORJ\

)RH[%$6\VWHPLFUHVSRQVHWR WUDXPD%U0HG%XOO 

 EORRGYROXPH  PO

 EORRGYROXPH  PO

%DXPDQQ0+6WUDQJH&7UHDWPHQWRIVSRQWDQHRXVSQHXPRWKRUD[ &KHVW 

3DUU\*:0RUJDQ:(6DODPD)'0DQDJHPHQWRIKDHPRWKRUD[ $QQ5&ROO6XUJ(QJ 

7RPOLQVRQ0$7UHDVXUH7,QVHUWLRQRIDFKHVWGUDLQ+RZWRGRLW %U-+RVS0HG 

3DUNV5:&KU\VRV('LDPRQG70DQDJHPHQWRIOLYHUWUDXPD %U-6XUJ  

LQMXULHVDUHPLQRU &ODVV,,, DQGFDQEHPDQDJHGFRQVHUYDWLYHO\

*RRGDFUH%YDQ6RQQHQEHUJ(5DGLRORJLFHYDOXDWLRQRIUHQDOWUDXPD -,QWHQVLYH&DUH0HG 

'XSX\'(5DSWRSRXORV9)LQN03&XUUHQWFRQFHSWVLQVSOHQLFWUDXPD -,QWHQVLYH&DUH0HG 

&RQIXVLRQ *&6 SHUVLVWLQJDIWHULQLWLDODVVHVVPHQWDQGUHVXVFLWDWLRQ

&KDQGOHU&/&XPPLQV%,QLWLDODVVHVVPHQWDQGPDQDJHPHQWRIWKHVHYHUHO\KHDG LQMXUHGSDWLHQW %U

'XQQ/7)R\30$QWLFRQYXOVDQWVDQGDQWLELRWLFSURSK\OD[LVLQKHDGLQMXU\ $QQ5&ROO6XUJ(QJ 

*HQWOHPDQ' *XLGHOLQHVIRUWKHUHVXVFLWDWLRQDQGWUDQVIHURISDWLHQWVZLWKVHULRXVKHDGLQMXU\ %0HG-

+DQGJXQEXOOHWVDUHRIORZYHORFLW\ PV DQGORZHQHUJ\  -

6DDGLD56FKHLQ0'HEULGHPHQWRIJXQVKRWZRXQGVVHPDQWLFVDQGVXUJHU\ :RUOG-6XUJ 

1HHGWRDVVHVVSHUFHQWDJHERG\VXUIDFHDUHD %6$ LQYROYHG

3URYLGHVYROXPH LQPO RIFROORLGWREHJLYHQLQILUVWKRXUV

:HLJKW .J u  %6$ u WR

*LYHVWRWDOYROXPH LQPO WREHLQIXVHGLQILUVWKRXUV

7DEOH 0RUDOLW\  DFFRUGLQJWR,66DQGDJH

PRUWDOLW\   PRUWDOLW\   PRUWDOLW\  !

0D[LPXPVFRUH LQGLFDWLQJOHDVWDIIHFWHG 

7UDXPDDQG,QMXU\6HYHULW\6FRUH 75,66 ZDVGHVLJQHGWRHYDOXDWHWUDXPDFDUH

)LJXUH $/6DOJRULWKPIRUWKHPDQDJHPHQWRIFDUGLDFDUUHVWLQDGXOWV  5HVXVFLWDWLRQ

%DUQDUG0-/LQWHU63.$FXWHFLUFXODWRU\VXSSRUW %U 0HG- 

$UWHULDOR[\JHQVDWXUDWLRQ 6 D2 GHSHQGVRQDUWHULDOR[\JHQWHQVLRQ 3 D2

+\SR[DHPLFIDLOXUH W\SH 5HGXFHG3 D&2UHGXFHG3D2

:DUH/%0DWWKD\0$7KHDFXWHUHVSLUDWRU\GLVWUHVVV\QGURPH 1(QJO-0HG 

3DUNHU6- :DWNLQV3( ,PPXQRPRGXODWRU\WKHUDSLHVRIVHSVLVDQG6,56 ,Q -RKQVRQ&' 7D\ORU,

(PS\HPD SXVZLWKLQ DERG\FDYLW\

5RZH6&KHDGOH:*&RPSOLFDWLRQVRIQRVRFRPLDOSQHXPRQLDLQVXUJLFDOSDWLHQ WV$P-6XUJ 

(PHU\- /XFDVVHQ$ 0XUSK\0 &RPPRQKHUHGLWDU\FDQFHUVDQGLPSOLFDWLRQVIRUSULPDU\FDUH /DQFHW

6YHQVVRQ:(7KHYDOXHRIXOWUDVRXQGVFDQQLQJLQEUHDVWGLVHDVH +RVS0HG 

0DQVHO5(%UHDVWSDLQ %U0HG- 

%LPRGDODJHSUHVHQWDWLRQ WHHQV SUHPHQRSDXVDO

+RXVVDPL1&KHXQJ01'L[RQ-0)LEURDGHQRPDRIWKHEUHDVW 0HG-$XVW 

35(23(5$7,9(0$1$*(0(17 21(

/266$5<2)'(5,9$7,212)$1$720,&$/$1' 3$7+2/2,&$/7(506

6WRSORQJDFWLQJVXOSKRQ\OXUHDVHJFKORUSURSDPLGHKRXUVSULRUWRVXUJHU\

1RUPDOKDHPRJORELQKDV[. DQG[ FKDLQV

+RUDQ7& D\QHV53 0DUWRQH:- -DUYLV:5 (PRQ7 &'&GHILQLWLRQVRIQRVRFRPLDOVXUJLFDO

+ROODQGHU-(6LQJHU$-/DFHUDWLRQPDQDJHPHQW $QQ(PHUJ0HG

.HOO\&33RWKRXODNLV&/DPRQW-7&ORVWULGLXPGLIILFOHFROLWLV 1 (QJO-0HG

&DUO36WDUN/,QGLFDWLRQVIRUWKHVXUJLFDOPDQDJHPHQWRIJHQLWRXULQDU\WXEHUFXORVLV :RUOG- 6XUJ

$EUDKDP1 'RXGOH0 &DUVRQ3 2SHQYHUVXVFORVHGWUHDWPHQWRIDEVFHVVHVDFRQWUROOHGFOLQLFDOWULDO

%LVQR$/6WHYHQV'/6WUHSWRFRFFDOLQIHFWLRQVRIVNLQDQGVRIWWLVVXHV 1(QJO-0HG

)UDVHU,,QWHVWLQDODQDVWRPRVLVZLWKDVNLQVWDSOHUDVDIHDQGHIILFLHQWPHWKRGLQK XPDQV %U-6XUJ

3RWHQWDQDHVWKHWLFEXWSRRUDQDOJHVLFDJHQW0$&

3RWHQWDQDHVWKHWLFEXWSRRUDQDOJHVLFDJHQW0$&

:HDNDQDHVWKHWLFDJHQW0$&

$LJQHU1)LDONR& )ULW]$:LQNV2=RFK*&RPSOLFDWLRQVLQWKHXVHRIGLDWKHUP\ %XUQV

(\HUV3$VKOH\66FRWW'-7RXUQLTXHWVLQDUWHULDOE\SDVVVXUJHU\ (XU-(QGRYDVF6XUJ

%RQMHU+- +D]HEURHN(- .D]HPLHU LXIIULGD0& 0HLMHU:6 /DQJH-) 2SHQYHUVXVFORVHG

/XFDV6:$UUHJXL0(0LQLPDOO\LQYDVLYHVXUJHU\IRULQJXLQDOKHUQLD :RUOG-6XUJ

/XFN$+HQVPDQ&+HZHWW3/DSDURVFRSLFFROHFWRP\IRUFDQFHUDUHYLHZ $XVW1=-6XUJ

3DWHUVRQ%URZQ6(PHUJHQF\ODSDURVFRSLFVXUJHU\%U-6XUJ

$FTXLUHGLPPXQRGHILFLHQF\V\QGURPH$,'6ZDVILUVWUHFRJQLVHGLQWKH86$LQWKHV

$SSOHWRQ*91 /HDSHU'-7KH,QIHFWHG:RXQG+RVSLWDO8SGDWH

$FWLYDWHGSDUWLDOWKURPERSODVWLQWLPH$337 LVSURORQJHG

6HYHUHXVXDOO\JUDPQHJDWLYHRUPHQLQJRFRFFDOLQIHFWLRQ

/XGODP&$7UHDWPHQWRIKDHPRSKLOLD%U-+DHPDWRO 6XSSO

6HQQR6/3HFKHW/%LFN5/'LVVHPLQDWHGLQWUDYDVFXODUFRDJXORSDWK\',&SDWKRSK\VLRORJ\

)RH[%$6\VWHPLFUHVSRQVHWR WUDXPD%U0HG%XOO

EORRGYROXPH PO

EORRGYROXPH PO

%DXPDQQ0+6WUDQJH&7UHDWPHQWRIVSRQWDQHRXVSQHXPRWKRUD[ &KHVW

3DUU\*:0RUJDQ:(6DODPD)'0DQDJHPHQWRIKDHPRWKRUD[ $QQ5&ROO6XUJ(QJ

7RPOLQVRQ0$7UHDVXUH7,QVHUWLRQRIDFKHVWGUDLQ+RZWRGRLW %U-+RVS0HG

3DUNV5:&KU\VRV('LDPRQG70DQDJHPHQWRIOLYHUWUDXPD %U-6XUJ

LQMXULHVDUHPLQRU&ODVV,,,DQGFDQEHPDQDJHGFRQVHUYDWLYHO\

*RRGDFUH%YDQ6RQQHQEHUJ(5DGLRORJLFHYDOXDWLRQRIUHQDOWUDXPD -,QWHQVLYH&DUH0HG

'XSX\'(5DSWRSRXORV9)LQN03&XUUHQWFRQFHSWVLQVSOHQLFWUDXPD -,QWHQVLYH&DUH0HG

&RQIXVLRQ*&6SHUVLVWLQJDIWHULQLWLDODVVHVVPHQWDQGUHVXVFLWDWLRQ

&KDQGOHU&/&XPPLQV%,QLWLDODVVHVVPHQWDQGPDQDJHPHQWRIWKHVHYHUHO\KHDG LQMXUHGSDWLHQW %U

'XQQ/7)R\30$QWLFRQYXOVDQWVDQGDQWLELRWLFSURSK\OD[LVLQKHDGLQMXU\ $QQ5&ROO6XUJ(QJ

HQWOHPDQ' XLGHOLQHVIRUWKHUHVXVFLWDWLRQDQGWUDQVIHURISDWLHQWVZLWKVHULRXVKHDGLQMXU\ %0HG-

+DQGJXQEXOOHWVDUHRIORZYHORFLW\PVDQGORZHQHUJ\ -

6DDGLD56FKHLQ0'HEULGHPHQWRIJXQVKRWZRXQGVVHPDQWLFVDQGVXUJHU\ :RUOG-6XUJ

1HHGWRDVVHVVSHUFHQWDJHERG\VXUIDFHDUHD%6$LQYROYHG

3URYLGHVYROXPHLQPORIFROORLGWREHJLYHQLQILUVWKRXUV

:HLJKW .J u %6$ u WR

*LYHVWRWDOYROXPHLQPOWREHLQIXVHGLQILUVWKRXUV

7DEOH 0RUDOLW\DFFRUGLQJWR,66DQGDJH

PRUWDOLW\ PRUWDOLW\ PRUWDOLW\!

0D[LPXPVFRUHLQGLFDWLQJOHDVWDIIHFWHG

7UDXPDDQG,QMXU\6HYHULW\6FRUH75,66ZDVGHVLJQHGWRHYDOXDWHWUDXPDFDUH

)LJXUH $/6DOJRULWKPIRUWKHPDQDJHPHQWRIFDUGLDFDUUHVWLQDGXOWV 5HVXVFLWDWLRQ

%DUQDUG0-/LQWHU63.$FXWHFLUFXODWRU\VXSSRUW %U 0HG-

$UWHULDOR[\JHQVDWXUDWLRQ6 D2GHSHQGVRQDUWHULDOR[\JHQWHQVLRQ3 D2

+\SR[DHPLFIDLOXUHW\SH 5HGXFHG3 D&2UHGXFHG3D2

:DUH/%0DWWKD\0$7KHDFXWHUHVSLUDWRU\GLVWUHVVV\QGURPH 1(QJO-0HG

3DUNHU6- :DWNLQV3( ,PPXQRPRGXODWRU\WKHUDSLHVRIVHSVLVDQG6,56 ,Q -RKQVRQ&' 7D\ORU,

5RZH6&KHDGOH:*&RPSOLFDWLRQVRIQRVRFRPLDOSQHXPRQLDLQVXUJLFDOSDWLHQ WV$P-6XUJ

(PHU\- /XFDVVHQ$ 0XUSK\0 &RPPRQKHUHGLWDU\FDQFHUVDQGLPSOLFDWLRQVIRUSULPDU\FDUH /DQFHW

6YHQVVRQ:(7KHYDOXHRIXOWUDVRXQGVFDQQLQJLQEUHDVWGLVHDVH +RVS0HG

0DQVHO5(%UHDVWSDLQ %U0HG-

%LPRGDODJHSUHVHQWDWLRQ WHHQV SUHPHQRSDXVDO

+RXVVDPL1&KHXQJ01'L[RQ-0)LEURDGHQRPDRIWKHEUHDVW 0HG-$XVW

&RORPER%HQNPDQQ0 %XVH% 6WHUQ- +HUIDUWK& ,QGLFDWLRQVIRUDQGUHVXOWVRIVXUJLFDOWKHUDS\IRU

:LOOLDPV7'DZVRQ30\QDHFRPDVWLD SUHVHQWDWLRQDHWLRORJ\DQGPDQDJHPHQW&XUUHQW 3UDFWLFH

%UHDVW&RQVHUYLQJ6XUJHU\%&6UDGLRWKHUDS\

13, [VL]HFP/\PSKQRGHVWDJH7XPRXUJUDGH

3ULPDU\QHRDGMXYDQWFKHPRWKHUDS\

&DUW\1-0DQDJHPHQWRIGXFWDO FDUFLQRPDLQVLWXRIWKHEUHDVW$QQ5&ROO6XUJ

(OWDKLU$+H\V6+XWFKHRQ$:HWDO 7UHDWPHQWRIODUJHDQGORFDOO\DGYDQFHGEUHDVWFDQFHUV XVLQJ

-RKQVWRQ65' 6\VWHPLFWUHDWPHQWRIPHWDVWDWLFEUHDVWFDQFHU +RVS0HG

6DXQGHUV&07KHFXUUHQWPDQDJHPHQWRIEUHDVWFDQFHU %U-+RVS0HG

7D\ORU,HWDO +RZVKRXOG WKHD[LOODEHWUHDWHGLQEUHDVWFDQFHU" (XU-6XUJ2QFRO

:DOG1-0XUSK\30DMRU3HWDO 8.&&5PXOWLFHQWUHUDQGRPLVHG FRQWUROOHGWUDLORIRQHDQGWZRYLHZ

%DOO$67KRPDV-6XUJLFDOPDQDJHPHQWRIPDOLJQDQWPHODQRPD %ULW0HG%XOO ,

+DOO31-DYLG0GH7DNDWV3*7KHUDSHXWLFWUHQGVLQFXWDQHRXVPHODQRPD +RVS0HG

$ODP0 5RWQHU' &XWDQHRXVVTXDPRXVFHOOFDUFLQRPD 1(QJO-0HG

+ROW3-$0RWOH\5-7KHWUHDWPHQWRIEDVDOFHOOFDUFLQRPD &XUU3UDFW6XUJ

&RPPRQHVWVLWH KHDG QHFN

%DQHUMHH$.6XUJLFDOWUHDWPHQWRIKLGUDGHQLWLVVXSSXU DWLYD%U-6XUJ

5RXQGLQJ& +XOP66XUJLFDOWUHDWPHQWVIRULQJURZLQJWRHQDLOV&RFKUDQH'DWDEDVH6\VW5HY