<:$06)

<:$06DQ)UDQFLVFR 1RYHPEHU'HFHPEHU

$0HVVDJHIURP2XU'LUHFWRU
$V\RXUHDGWKLVQHZVOHWWHUSOHDVHFRQVLGHUSDUWQHULQJZLWKXVDVZHFRQWLQXHWRIXOILOORXUPLVVLRQVWDWHPHQW´(QJDJLQJD
&LW\ZLWKDORYLQJ*RGµ
<:$06DQ)UDQFLVFRQHHGV\RXUFRRSHUDWLRQ
:HVHQGRXWHPDLOQHZVOHWWHUVHDFK\HDUDQGZDQWWRPDNHVXUH\RXZDQWWRUHFHLYHWKHP,I\RXGRQҋWZDQWWREHLQ
RXUGDWDEDVHMXVWOHWXVNQRZDQGZHZLOOUHPRYH\RX

6HFRQGO\SOHDVHFRQVLGHUDJHQHURXVHQGRIWKH\HDUWD[GHGXFWLEOHGRQDWLRQWRZDUGVRXUSURSHUW\DFTXLVLWLRQIXQG:H
6HFRQGO
DUHGHHSO\HQJDJHGLQWKH7HQGHUORLQLQWKHKHDUWRI6DQ)UDQFLVFRDQGKDYHEHHQIRUVROLG\HDUV:HDUHOHDVLQJD
SURSHUW\ZHKRSHWRDFTXLUHZLWKLQWKHQH[W\HDUVRUILQGDQRWKHUVXLWDEOHSURSHUW\LQDVWUDWHJLFQHLJKERUKRRGWKXVSHU
PLWWLQJXVWRFRQWLQXHLQRXUPLVVLRQRIHQJDJLQJRXUFLW\

:HVSHFLILFDOO\HVWDEOLVKHGWKLVSURSHUW\DFTXLVLWLRQIXQGZKLFKLVFDUHIXOO\PDQDJHGE\RXUERDUGZLWKWKHREMHFWLYHRISXU
FKDVLQJDVXLWDEOHSURSHUW\ZLWKLQWKHQH[W\HDUV1RDPRXQWLVWRRVPDOODQGJLYHQWKHSURSHUW\SULFHVLQ6DQ)UDQFLVFR
QRDPRXQWLVWRRODUJH3OHDVHFRQVLGHUDJHQHURXVJLIWRIRUPRUHDQGSDUWQHUZLWKXVWRZDUGV
WKLVJRDO
3OHDVHFRQVLGHUJLYLQJLQRWKHUZD\VOLNHVXSSRUWLQJRQHRIRXUPLQLVWULHVRUDSDUWLFXODUVWDIISHUVRQRUSURMHFW
)ROORZWKHOLQNLQWKHHPDLOEHORZWRGRQDWHRQOLQHDWRXWZHEVLWH
/DVWO\ZHVLQFHUHO\QHHG\RXUSUD\HUVDQGZRXOGFRQVLGHULWDVSHFLDOKRQRUWREHSUD\LQJIRU\RX<RXFDQHPDLOXVDW
LQIR#\ZDPVDQIUDQFLVFRRUJWROHWXVNQRZ\RXUSUD\HUQHHGV:HZLOOEHJODGWRVWDQGZLWK\RX
7LP6YRERGD
<:$06DQ)UDQFLVFRDQG%D\$UHD&RRUGLQDWRU

<:$06DQ)UDQFLVFR‡(OOLV6W6DQ)UDQFLVFR&$
+LGGHQ7UHDVXUHV 6WRU\E\5XWKLH.LP

´:KHUHYHU\RX 1XUWXULQJDSHUVSHFWLYHRQ
KRZ DQG ZK\ ZH ORYH
FDOOKRPH\RXҋOO WKHVHSHRSOHDQGWKHLUUROH
ILQGGHVSDUDWH LQ *RGҋV SXUSRVHV IRU WKH
FLW\ LV FULWLFDOO\ LPSRUWDQW
H[SORLWHGDQG :HPXVWEHFDUHIXOLQDS
SURDFKLQJWKLVWDVNZURQJ
DEXVHGSHRSOHµ O\ E\ WKLQNLQJ WKDW  ZH
KDYH HYHU\WKLQJ WR RIIHU
DQG QRWKLQJ WR JDLQ 'U 0DUWLQ /XWKHU .LQJ VSRNH RI
OLYLQJLQ´UHYROXWLRQDU\WLPHVµDQG,WKLQNSHUKDSVZHDUH
VWLOOOLYLQJLQWKRVHWLPHVHVSHFLDOO\LQUHJDUGVWRKRZZH
EULQJDERXWVRFLDOFKDQJHDQGMXVWLFH¬
:KHQZHWKLQNRIZKRZLOOEULQJWUDQVIRUPDWLRQWRDFLW\

3KRWRJUDSK\E\$OOLH-RQJHZDUG
ZH RIWHQ WKLQN RI WHDFKHUV VRFLDO DFWLYLVWV DQG FKXUFK
OHDGHUV +RZHYHU ,ҋG OLNH WR VXJJHVW WKDW WKRVH EURNHQ
OLYHVZHDUHWRXFKLQJDUHLQIDFWWKHNH\VWRRXUFLW\&RQ
VLGHUWKHVWRU\RI5DKDEDQGWKHVSLHVIRXQGLQ-RVKXD
:KHQWKHVSLHVDUULYHGLQWKH3URPLVHG/DQGWKH\ZHUH
JUHHWHG E\ D ZRPDQ ZKR EHFDPH WKHLU OLIHOLQH 7KH\
FRXOG QRW KDYH LPDJLQHG WKDW D ZRPDQ ZLWK QR IRUPDO
FRXOG
SRZHU D YLFWLP RI VH[XDO H[SORLWDWLRQ DQG GLVJUDFH
ZRXOG EH *RGҋV SODQ IRU WKHLU VXUYLYDO DQG WKHLU NH\ WR
-HULFKR 6KH KDG QR GHJUHHV QR DXWKRULW\ DQG ZRXOG
HDVLO\KDYHEHHQRYHUORRNHGLQWKHUDFHIRUPRVWHIIHF
WLYH VRFLDO DFWLYLVW 6KH ZDV QRERG\ DQG \HW VKH EH
FRPHVWKHVWDUFKDUDFWHUUHPHPEHUHGIRUKHUFRXUDJHDQGEUDYHU\LQWKHIDFHRIH[WHQVLYHRSSUHVVLRQ$QH[
FKDQJHRFFXUUHGEHWZHHQ*RGҋVSHRSOHDQGWKHVDOYDWLRQWKH\RIIHUHGKHUDQGDSURVWLWXWHGZRPDQZKRULVNHG
KHUOLIHEHFDXVHVKHEHOLHYHGLQWKH*RGRI,VUDHO¬
6RZKDWDERXWWRGD\":KRDUHWKH5DKDEҋVRIRXURZQFLW\FRPPXQLW\RUZRUNSODFH"&RXOGLWEHWKDWLQRXUDW
WHPSWVWRGRJRRGZHKDYHQHJOHFWHGWRLQFOXGHWKRVHZKRP*RGKDVFKRVHQWRHPSRZHUDQGOHDGWKHZD\"
2XUWKHRORJ\RIUHDFKLQJWKHSRRUDQGQHHG\QHHGVWRLQFOXGHSODFLQJYDOXHRQWKHGHVWLQ\DQGSXUSRVHRIWKRVH
ZHGHVLUHWRKHOS,WQHHGVWRLQFOXGHHPSRZHULQJDQGUHOHDVLQJDVZHOODVVXSSRUWLQJDQGKHOSLQJ:KHQ,ZDON
WKURXJKWKH7HQGHUORLQQHLJKERUKRRGSDVWPDVVDJHSDUORUVDQGVWULSFOXEVLWUHPLQGVPHWKDWWKH\DUHILOOHGZLWK
SRWHQWLDOҊ5DKDEVҋIRU6DQ)UDQFLVFR7KHVHZRPHQDUHYLFWLPVRIVH[XDOH[SORLWDWLRQODEHOHGDQGVKDPHGEXW
WKH\DUHDOVRKROGLQJNH\VWKDWFRXOGXQORFNDFLW\IRU*RGҋVHWHUQDOSXUSRVHV+RZGRZHEXLOGUHODWLRQVKLSVSUR
WKH\
JUDPVDQGRXWUHDFKHVWKDWDFFRPSOLVKWKLVUDWKHUWKDQVHHLQJRXUVHOYHVDVWKHRQO\DQVZHUVWRWKHQHHGVRIWKH
FLW\"&RXOGLWEHWKDW*RGKDVDOUHDG\EHHQZRUNLQJLQWKHKHDUWVRIWKHEURNHQLQYHVWLQJLQWKHPGUHDPVDQG
JLIWVWKDWZHQHHGLQRUGHUWRVHH*RGҋVNLQJGRPFRPH"
7UDQVIRUPDWLRQLQWKH7HQGHUORLQ 6WRU\E\
0LFKDHO%URZQH

2XUVPDOOJURXSRIGLVFLSOHVPDGHRXUZD\WRDWRS RUGHU WR KHDU WKH ZKLVSHU RI WKH +RO\ 6SLULW :LWK
RIWKHUDWKHUODUJHKLOORQRXUILUVWILHOGWULSRIWKHQHZ RQH DFFRUG ZH SUD\HG DQG HQWHUHG WKH FDWKHGUDO
<:$0GLVFLSOHVKLSSURJUDPIRUSRRUDQGPDU 7RGHVFULEHWKHVKHHUHQRUPLW\RIWKLVSODFHZRXOG
JLQDOL]HGSHRSOH0\OHJVEXUQHGDQGP\EUHDWKLQJ EHLPSRVVLEOHDQGP\ZRUGVKRZHYHUSRHWLFZRXOG
KDG EHFRPH TXLWH ODERUHG :LWK VZHDW EHDGLQJ IDLOWRGRMXVWLFHWRWKHEHDXW\RIZKDWZHVDZ
GRZQP\EHDUG,JODQFHGRYHUP\VKRXOGHUWRVHH
WKDWP\IULHQGVZHUHFORVHEHKLQG 6ORZO\
6ORZO\ZHPDGHRXUZD\WRWKH&URVVDQGWKHDOWDU
ZKHUHWKHSULHVWVZRXOGQRUPDOO\RIIHUFRPPXQLRQ
2XU JRDO ZDV WR YLVLW *UDFH &DWKHGUDO RQH RI WKH 7KLVGD\KRZHYHULWZDVMXVWXV,VSRNHTXLHWO\RQ
ROGHVW (SLVFRSDO FKXUFKHV LQ WKH QDWLRQ 7KLV KLV WKH WUDGLWLRQV RI FRPPXQLRQ ,W ZDV WKHQ WKH +RO\
WRULFFDWKHGUDOVLWVDWRSGRZQWRZQOLNHDFURZQDQG 6SLULWVSRNH(ULF
VOLSVSDUWHGDQGZKDWFDPHQH[W
WHVWLPRQ\ WR WKH FLWLHV URRWV RI IDLWK :KLOH \RXU EURXJKWMR\,KDGQRWIHOWLQDORQJWLPH
WKRXJKWV RI 6DQ )UDQFLVFR PD\ GLIIHU JUHDWO\ WKH
WUXWKLVWKDWPDQ\FDPHKHUHKXQGUHGVRI\HDUVDJR , , ZDQW WR EH EDSWL]HG KH VDLG ZLWK FRQYLFWLRQ ,
ZLWKDPLVVLRQ$PLVVLRQWRSURFODLPWKH*RVSHORI KDGPHQWLRQHGQRWKLQJRIEDSWLVPDVRI\HWLQWKH
&KULVWWKDWLVVWLOODOLYHWRGD\
&KULVWWKDWLVVWLOODOLYHWRGD SURJUDPDQGKHUHZDVWKLVKRPHOHVVNLGFRQIHVV
LQJ KLV GHVLUH WR VKDUH KLV IDLWK SXEOLFO\ 0H WRR
:HJDWKHUHGRQWKHVWHSVRI*RGҋVKRXVHWRFDWFK KLV EURWKHU VWHSSHG IRUZDUG$ VPLOH UDFHG DFURVV
RXU EUHDWK VQDS D IHZ SLFWXUHV DQG GLVFXVV RXU P\ IDFH 7KH JURXS EHJDQ WR GUDZ FORVHU DV LI
SXUSRVHIRUFRPLQJ0\EURWKHUV,EHJDQWRVD\ DOPRVW FRPLQJ LQWR D KXGGOH +RZ PDQ\ RI \RX
ZH DUH KHUH WR UHFRJQL]H WKH IDLWK RI WKRVH WKDW ZDQW
ZDQW WR EH EDSWL]HG" , DVNHG $OO KDQGV ZHUH
FDPHEHIRUHXV2XUVSLULWXDOPRWKHUVDQGIDWKHUV UDLVHG H[FHSW IRU WZR RI WKH JX\V 3UDLVH EH WR
EXLOWWKLVSODFHRIZRUVKLSZLWKWKHKRSHVWKDWPDQ\ *RG,H[FODLPHG
ZRXOGHQWHUWKURXJKLW
VGRRUVZLWKWKDQNVJLYLQJDQG
SUDLVH7KRXJKZHIRFXVRQUHODWLRQVKLSZLWK&KULVW *RGLVPRYLQJLQGHHSDQGSURIRXQGZD\VKHUHZLWK
SUDLVH
DERYHDOOHOVHLWLVLPSRUWDQWWRGLVFRYHUDQGXQGHU RXUKRPHOHVVIULHQGV+LV6SLULWLVSDVVLQJWKURXJK
VWDQG WKH WUDGLWLRQV RI WKH &KXUFK 7RGD\ DV ZH WKHGUXJLQIHVWHGFULPHILOOHGEXOOHWULGGOHGVWUHHWV
ZDONDERXWWKHFRXUW\DUGZLWKLW
VIORZLQJIRXQWDLQV RIWKH7HQGHUORLQFDOOLQJ+LVRZQVRQVDQGGDXJK
DQG DV ZH HQWHU WKH VDQFWXDU\ DQG DSSURDFK WKH WHUVKRPH
&URVVOHW
VTXLHWRXUVHOYHVLQ
%.6)$4
2FWREHUNLFNVRIIZLWKDQHZPLQLVWU\IRU<:$0LQWKH%D\
$UHD2XWRIWKH6RXWK%D\LQ6DQ-RVH<:$0(PEHU
,QNKDVEHJXQ7KLVPLQLVWU\²XVLQJPXVLFPHGLDDQGDUW
FRPELQHG ZLWK WKH HIIRUWV RI FRPEDWLQJ WKH DUHDV RI
KXPDQ WUDIILFNLQJ DQG VH[XDO H[SORLWDWLRQ ² DLPV WR LQ
VSLUH D JHQHUDWLRQ RI SHRSOH ZKR ZLOO LQIOXHQFH VRFLHW\
IXHOHGE\WKHLUGHHS
FRQQHFWLRQ
FRQQHFWLRQ ZLWK
*RG
:HҋUH H[FLWHG WR
VHH ZKDW WKLV ZLOO
EHFRPH DV \RXQJ
SHRSOH DUH FKDO
OHQJHG DQG FDOOHG
WR PDNH D GLIIHU
HQFH WKURXJK WKLV
PLQLVWU\ .HHS \RXU
H\HVDQGHDUVRSHQ
DV (PEHU ,QN JHWV
ODXQFKHG