0LQLVWU\RI(OHFWURQLFV ,QIRUPDWLRQ7HFKQRORJ\ 0HLW<

*RYHUQPHQWRI,QGLD

$118$/5(3257

 &217(176
 2YHUYLHZ9LVLRQDQG0LVVLRQ 

  ,QWURGXFWLRQ
  9LVLRQ
  0LVVLRQ
  2EMHFWLYHV
  )XQFWLRQV$FWLYLWLHV $OORFDWLRQRI%XVLQHVV5XOHV 
  2UJDQLVDWLRQ6WUXFWXUH
  &LWL]HQ V&OLHQW V&KDUWHU &&&

 'LJLWDO,QGLD3RZHUWR(PSRZHU 

  'LJLWDO,QIUDVWUXFWXUHDVD&RUH8WLOLW\WR(YHU\&LWL]HQ
   'LJLWDO,GHQWLW\$DGKDDU$QHIÀFLHQWDQGWDUJHWHGVHUYLFHGHOLYHU\SODWIRUP
    H3UDPDDQ
    2QOLQHHVLJQ
   6WDWH:LGH$UHD1HWZRUN 6:$1 
   6WDWH'DWD&HQWUH
   *,&ORXG 0HJK5DM 
   6HUYLFH'HOLYHU\*DWHZD\
   1DWLRQDO.QRZOHGJH1HWZRUN 1.1
   1DWLRQDO,QIRUPDWLRQ,QIUDVWUXFWXUH 1,,
   0RELOH6HYD3ODWIRUP 063
   *HRJUDSKLFDO,QIRUPDWLRQ6\VWHP *,6 
   +LJK6SHHG%URDGEDQG&RQQHFWLYLW\
   3XEOLF,QWHUQHW$FFHVV3URJUDPPH ,QFOXGLQJ:LÀLQ8QLYHUVLWLHV
   6DIHDQG6HFXUH&\EHUVSDFH
  *RYHUQDQFHDQG6HUYLFHVRQ'HPDQG
   H.UDQWL(OHFWURQLF'HOLYHU\RI6HUYLFHV
   H'LVWULFW
   $OO6HUYLFHV7KURXJK2QOLQH 0RELOH
    3URJUDPPHRQ*RRG*RYHUQDQFHDQG%HVW3UDFWLFHV


    :RUOG%DQN$VVLVWHG´,QGLDH'HOLYHU\RI3XEOLF6HUYLFHVµ3URMHFW
    1DWLRQDO6FKRODUVKLS3RUWDO
    'LJLWDO/RFNHU 2WKHU,QLWLDWLYHV
    &LWL]HQ&RQWDFW&HQWUH
    (QDEOLQJ$OO6FKRROVZLWK9LUWXDO&ODVVURRPV
    2SHQ*RYHUQPHQW'DWD 2*' 3ODWIRUPIRU1DWLRQDO'DWD6KDULQJ 
$FFHVVLELOLW\3ROLF\ 1'6$3 
    (OHFWURQLF7UDQVDFWLRQ$JJUHJDWLRQDQG$QDO\VLV/D\HU H7DDO 
    (+RVSLWDO3URMHFW
   -HHYDQ3UDPDDQ
   %LRPHWULF$WWHQGDQFH6\VWHP %$6 $1DWLRQDO5ROO2XW
   35$*$7,9LGHR&RQIHUHQFLQJ
   'LJLWL]H,QGLD3ODWIRUP ',3 
   6ZDFKK%KDUDW0LVVLRQ²*UDPLQ
   3ULPH0LQLVWHU$ZDDV<RMDQD
   :HE%DVHG&RXQVHOLQJ
   ,QWHJUDWHG7UDFN&KLOG3RUWDO
   2QOLQH1*23URSRVDOSURFHVVLQJDQG7UDFNLQJ6\VWHP
   0DQXDO6FDYHQJHU6XUYH\LQ6WDWXWRU\7RZQVDQG5XUDO$UHD
   6RLO+HDOWK&DUG
   3XEOLF)LQDQFLDO0DQDJHPHQW6\VWHP 3)06
   (RIÀFH
   *RYHUQPHQWH3URFXUHPHQW *H31,&
   9DKDQDQG6DUDWKL WUDQVSRUW
   (*UDQWKDOD\D
   ,PPLJUDWLRQ9LVD )RUHLJQHU7UDFNLQJ6\VWHP
   &ROODE&$'
   )LQDQFLDOWUDQVDFWLRQVHOHFWURQLF FDVKOHVV
    'LUHFW%HQHÀW7UDQVIHU '%7 
    1DWLRQDO3D\PHQW6HUYLFH3ODWIRUP
   7HFKQLFDODQG2WKHU6XSSRUW
    5DSLG5HSOLFDWLRQRI$SSOLFDWLRQV
    H*RY$SS6WRUH
    ,QGLD3RUWDO
    1DWLRQDO&HQWUHIRUH*RYHUQDQFH6WDQGDUGVDQG7HFKQRORJ\ 1H67 


    &DSDFLW\%XLOGLQJ6FKHPH
    'LJLWDO*RYHUQPHQW5HVHDUFK&HQWUH '*5&  
   &RPPRQ6HUYLFH&HQWUH &6& 
  'LJLWDO(PSRZHUPHQWRI&LWL]HQV
   3URPRWLQJ'LJLWDO3D\PHQW6\VWHPV
   H/HDUQLQJ
    7HFKQRORJ\'HYHORSPHQWIRU,QGLDQ/DQJXDJH 7',/ 
   'LJLWDO/LWHUDF\
   ,QLWLDWLYHVRQ$FFHVVLELOLW\
   0\*RY
    0DMRU$WWULEXWHVRI0\*RY
    3URPLQHQW$FWLYLWLHV+HOGE\0\*RY
    0\*RY·V)XWXUH3URJUDPPHV
   'LJLWDO,QGLD&RPPXQLFDWLRQ
   ,QWHUQDWLRQDO&RQIHUHQFHRQH*RYHUQDQFH ,&H*29

 0DNHLQ,QGLD(OHFWURQLFV0DQXIDFWXULQJ 

  0HDVXUHV6FKHPHV
   /DUJH6FDOH0DQXIDFWXULQJ
   (OHFWURQLF&OXVWHUV
   6HPLFRQGXFWRU:DIHU)DEV
   ,QFHQWLYHVIRU)DEOHVV'HVLJQ
  3ROLF\
   3UHIHUHQFHWR'RPHVWLF(OHFWURQLF3URGXFWV
   &RPSXOVRU\6DIHW\6WDQGDUGVIRU(OHFWURQLFV
  *URZWKRI(OHFWURQLFV6HFWRU
   &RQVXPHU(OHFURQLFV
   ,QGXVWULDO(OHFWURQLFV
   $XWRPRWLYH(OHFWURQLFV
   &RPSXWHU+DUGZDUH
   0RELOH3KRQHV
   6WUDWHJLF(OHFWURQLFV
   0HGLFDO(OHFWURQLFV
   (OHFWURQLF&RPSRQHQWV
   /LJKW(PLWWLQJ'LRGHV /('V 


   ,PSRUWV  
   ,PSRUWVRI(OHFWURQLFVGXULQJ
   ([SRUWV  
   ([SRUWV $SULO'HFHPEHU
   5DWLRQDOLVDWLRQRI7DUULIGXULQJ
  'HYHORSPHQWRI,QGLDQ&RQGLWLRQDO$FFHVV6\VWHP L&$6 
  0DUNHWLQJDQG$WWUDFWLQJ,QYHVWPHQWLQ(OHFWURQLFV6HFWRU
   6SHFLÀF9HUWLFDOVUHODWHG1DWLRQDO:RUNVKRSV
   6WDWH/HYHO:RUNVKRSV
   ,QGXVWU\&RQIHUHQFHV
   2XWUHDFKWR$FDGHPLDDQG6WXGHQWV
   1DWLRQDO&RQIHUHQFH
   3URPRWLRQVWRDWWUDFWLQYHVWPHQWLQ(6'0VHFWRU
   7ZLWWHU+DQGOH
   %%3RUWDO
  ,QIRUPDWLRQ7HFKQRORJ\,QYHVWPHQW5HJLRQ ,7,5

 0DNHLQ,QGLD6RIWZDUH 6HUYLFH 

  *OREDO3HUVSHFWLYH
  H&RPPHUFH
  ,76HUYLFH %32
  ,QWHUQDWLRQDO2XWUHDFK²6KRZFDVLQJ,QGLD·V,7WDOHQW
  &RRSHUDWLRQWKURXJKZRUNLQJJURXSVELODWHUDO,QWHUDFWLRQV
  0XOWLODWHUDO&RRSHUDWLRQ
  0R8V$JUHHPHQWV-',V
  ,QWHUQDWLRQDO3URMHFWVLQ,&7
  *URZWKRI6RIWZDUHDQG6HUYLFHV6HFWRU
   2YHUDOO,7,7(6SHUIRUPDQFH
   'RPHVWLF,7,7(6SHUIRUPDQFH
   ,7,7(6(PSOR\PHQW6FHQDULR
  6RIWZDUHDVDWRROIRU(FRQRPLF*URZWK

 ,QQRYDWHDQG'HVLJQLQ,QGLD 

  &UHDWLRQRI5HVHDUFK(FRV\VWHP
   1DWLRQDO6XSHUFRPSXWLQJ0LVVLRQ 160 


   (OHFWURQLFV'HYHORSPHQW)XQG (') 
   ,QFXEDWRUVIRU(OHFWURQLFV
   5 'DQG,3'HYHORSPHQW
   )UHH 2SHQ6RXUFH6RIWZDUH )266 
  7UDQVODWLRQ5 '
   0HGLFDO(TXLSPHQW7RROV
   0LFUR 1DQR(OHFWURQLFV
   (OHFWURQLF0DWHULDOV &RPSRQHQW'HYHORSPHQW
   *UHHQ&RPSXWLQJ
   7HFKQRORJ\'HYHORSPHQW 'HPRQVWUDWLRQIRU,QGLDQ,QGXVWULHV
  &HQWUHVRI([FHOOHQFH
   1DQR7HFKQRORJ\&HQWUHV
   'HPRQVWUDWLRQ)DFLOLW\RI6XSHUFDSDFLWRUVDW&0(77KULVVXU
   5R+67HVWLQJIDFLOLW\DW&0(7+\GHUDEDG
   &HQWUHRI([FHOOHQFHIRU'LJLWDO3UHVHUYDWLRQ
   ,QWHUQHWRI7KLQJV
   ,QQRYDWLRQ,35DQG,3'HYHORSPHQW
    &ROODERUDWLYH5HVHDUFK 'HYHORSPHQWWKURXJK*,7$
    6XSSRUWLQJUHVHDUFKLQ0HGLFDO(OHFWURQLFVWKURXJK%,5$&
  ([SORUDWRU\%OXH6N\5HVHDUFK
   %LRLQIRUPDWLFV
   5HVHDUFKRQVHFXUHG&\EHU6SDFH
    &\EHU6HFXULW\5 '3URMHFWV
   'HVLJQDQG'HYHORSPHQWRID&RPSDFW&RVWHIIHFWLYH%UL[0HWHU
  6RFLHWDO5HDFK5 '
   0HGLFDO7RROV(TXLSPHQWV6RIWZDUH
   +HDOWKFDUH
   (ZDVWH5HF\FOLQJ
   $JULFXOWXUH
   (QYLURQPHQWDO3ROOXWLRQ0RQLWRULQJ
   (QHUJ\6WRUDJHDQG*HQHUDWLRQ
   5HKDELOLWDWLRQRI'LY\DQJ
   /DQJXDJH&RPSXWLQJ
  6RFLHWDO0LVF


 ,QWHUQHW*RYHUQDQFHDQG6HFXUHG&\EHU6SDFH 

  ,QWHUQHW*RYHUQDQFH
   $FKLHYHPHQWV
    (QJDJHPHQWLQ,QWHUQDWLRQDO)RUXPV0HHWLQJV
    7KH5HVHDUFK'HYHORSPHQWDQGDZDUHQHVVDJHQGD
  1DWLRQDO,QWHUQHW([FKDQJHRI,QGLD 1,;,
  &\EHU/DZV
  ,QGLDQ&RPSXWHU(PHUJHQF\5HVSRQVH7HDP ,&(57 
  ,QLWLDWLYHVWRZDUGV6HFXULW\LQ'LJLWDO3D\PHQWV

 6NLOO,QGLD&DSDFLW\%XLOGLQJ 

  6NLOO,QGLD
   3RVW*UDGXDWHDQG'RFWRUDWH/HYHO
   *UDGXDWH/HYHO
   9RFDWLRQDO6NLOO'HYHORSPHQW/HYHO
   &DSDFLW\%XLOGLQJLQ1LFKH$UHDV
   &UHDWH6NLOO'HYHORSPHQW)DFLOLWLHVLQ'HSULYHG$UHDV7KURXJK1,(/,7
   ,7IRU0DVVHV3URJUDPPH

 6WDWXWRU\2UJDQL]DWLRQV 

  $XWKHQWLFDWLRQ)UDPHZRUN8QGHUWKH,7$FW&&$
   H6LJQ2QOLQH(OHFWURQLF6LJQDWXUH6HUYLFH
  8QLTXH,GHQWLÀFDWLRQ$XWKRULW\RI,QGLD 8,'$,
   ,QWURGXFWLRQ
   9DOXH3URSRVLWLRQRI$DGKDDU
   $SSURDFKDQG6WUDWHJ\(QUROPHQW(FRV\VWHP
   $DGKDDU/HWWHU3ULQWLQJDQG'HOLYHU\
   $XWKHQWLFDWLRQ(FRV\VWHP
   $DGKDDU6HHGLQJ(FRV\VWHP
   7UDLQLQJ7HVWLQJDQG&HUWLÀFDWLRQHFRV\VWHP
  ,QWUDQHW .QRZOHGJH0DQDJHPHQW3RUWDO
   8,'$,:HEVLWH
   'DWDVHFXULW\DQGSULYDF\
   $DGKDDU$7RROIRU*RYHUQDQFH5HIRUP


   &UHDWLRQRIUHTXLVLWH7HFKQRORJ\,QIUDVWUXFWXUH
   &RQVWUXFWLRQRI8,'$,+4EXLOGLQJ
  8VHRI5DMEKDVKD
  'HWDLOVRI%XGJHW ([SHQGLWXUHGXULQJ
  ,QGLDQ&RPSXWHU(PHUJHQF\5HVSRQVH7HDP ,&(57
  &\EHU$SSHOODWH7ULEXQDO &$7 

 $WWDFKHG2IÀFHVDQG6RFLHWLHV 

  +LJKHQG6RIWZDUH6\VWHPV&HQWUHIRU'HYHORSPHQWRI$GYDQFHG&RPSXWLQJ &'$& 

   +LJK3HUIRUPDQFH&RPSXWLQJ +3& *ULG&RPSXWLQJDQG&ORXG&RPSXWLQJ
   0XOWLOLQJXDO&RPSXWLQJDQG+HULWDJH&RPSXWLQJ
   3URIHVVLRQDO(OHFWURQLFV,QFOXGLQJ9/6,DQG(PEHGGHG6\VWHPV
   6RIWZDUH7HFKQRORJLHVLQFOXGLQJ)266
   &\EHU6HFXULW\DQG&\EHU)RUHQVLFV
   +HDOWK,QIRUPDWLFV
   (GXFDWLRQDQG7UDLQLQJ
   1RUWK(DVW
   ,QWHUQDWLRQDO,QLWLDWLYHV
  6WUDWHJLF 1HHG 6RFLHW\ IRU $SSOLHG 0LFURZDYH (OHFWURQLFV (QJLQHHULQJ DQG 5HVHDUFK
6$0((5 
   $FKLHYHPHQWV
   &HQWUHVRI6$0((59LVDNKDSDWQDPDQG*XZDKDWL
   1RUWK(DVW,QLWLDWLYHV
   6$0((53URMHFWV8QGHUWDNHQ'XULQJWKH<HDU
  &0(7·6/DERUDWRULHVDQGFRUHFRPSHWHQFH
   7HFKQLFDODFWLYLWLHV SURJUHVVGXULQJ
  (51(7
   'RPDLQ5HJLVWUDWLRQ
   ,QWHUQHWRI7KLQJV ,R7 
   3LORW3URMHFWRI:KLWH6SDFH79
   :L)L&DPSXV1HWZRUNLQÀYH8QLYHUVLWLHV
   60$57&ODVVURRPV,&7OHDUQLQJ7UDLQLQJHWF
   &RQQHFWLQJWKH8QFRQQHFWHG8VLQJ96$7V
   6HWWLQJXSRI'LJLWDO$UFKLYDOIDFLOLW\
   7HUUHVWULDO2SHUDWLRQ


  H*RYHUQDQFH6ROXWLRQ1H*'
  *RYHUQPHQW·V,7,QIUDVWUXFWXUH1DWLRQDO,QIRUPDWLFV&HQWUH 1,& 
   1,&,7,QIUDVWUXFWXUH
    'DWD&HQWUHV,QIUDVWUXFWXUH
    ,956 ,QWHUDFWLYH9RLFH5HVSRQVH6\VWHP
   H0DLODQG6066HUYLFHV
    H0DLO6HUYLFHV
    H6DPSDUN
    H*UHHWLQJV
    606 6KRUWPHVVDJHVHUYLFHV 6HUYLFHV
   1,&1(7²(*RYHUQDQFH1HWZRUN%DFNERQH
   1,&1(796$76HUYLFHV
   9LGHR&RQIHUHQFLQJ 9& 6HUYLFHV
   2SHQ7HFKQRORJ\*URXS 27* 
   6RIWZDUH'HYHORSPHQW8QLW 6'8 3XQH
   6RIWZDUH'HYHORSPHQW8QLW 6'8  7UDLQLQJ&HQWUH.RFKL
   6HUYLFH3OXV
   'HYHORSPHQWRI1RUWK(DVWHUQ5HJLRQ 'R1(5
   'HIHQFH,QIRUPDWLFV'LYLVLRQ
   )RRG3URFHVVLQJ,QGXVWULHV,QIRUPDWLFV'LYLVLRQ
   1,&6WDWH8QLWVDQG87V
   1DWLRQDO,QIRUPDWLFV&HQWUH6HUYLFHV,QF 1,&6,
  6WDQGDUGL]DWLRQ7HVWLQJDQG4XDOLW\&HUWLÀFDWLRQ 674& 'LUHFWRUDWH
   $FKLHYHPHQWVGXULQJ)<
   &RPPRQ&ULWHULD && 7HVW/DERUDWRU\
   1DWLRQDOIDFLOLW\IRU4XDOLW\$VVHVVPHQWRI%LRPHWULF'HYLFHV
   :HEVLWH4XDOLW\&HUWLÀFDWLRQ6HUYLFHV
   7HVWDQG&DOLEUDWLRQ6HUYLFHVRIIHUHGE\(57/V(7'&VLQWKHÀHOGRI(OHFWURQLFV
   &RQWLQXLQJSDUWLFLSDWLRQLQ6SDFH3URJUDPPHVWKURXJK&RPSRQHQWV6FUHHQLQJ
3DFNDJHV 0RGXOHVWHVWLQJDQG(QYLURQPHQWDOWHVWLQJ
   1DWLRQDO$FFUHGLWDWLRQVRI7HVWDQG&DOLEUDWLRQIDFLOLWLHV
   7UDLQLQJVHUYLFHV
   $FWLYLWLHVLQ1RUWK(DVW5HJLRQ 1(5
   $GPLQLVWUDWLYHPDWWHUV 674& 


  1DWLRQDO,QVWLWXWHRI(OHFWURQLFVDQG,QIRUPDWLRQ7HFKQRORJ\ 1,(/,7
   ,QWURGXFWLRQ
   6RPH1RWDEOH$FKLHYHPHQWV
   5 ',QQRYDWLRQ 'HVLJQ
   &DSDFLW\%XLOGLQJSURMHFWV
  6RIWZDUH7HFKQRORJ\3DUNVRI,QGLD 673,
   ,QWURGXFWLRQ
   673,&HQWUHV
   6HUYLFHV
   ,QGLD%323URPRWLRQ6FKHPH1RUWK(DVW%323URPRWLRQ6FKHPH
   3URPRWLRQRI6PDOODQG0HGLXP(QWUHSUHQHXUVE\FUHDWLQJDFRQGXFLYH
HQYLURQPHQWLQWKHÀHOGRI,QIRUPDWLRQ7HFKQRORJ\
  0(',$/$%$6,$
   ,QWURGXFWLRQ
   ,&7%DVHG,QWHJUDWHGGHYHORSPHQWSURJUDPIRUZRPHQHPSRZHUPHQW
   'HYHORSPHQWRI2SHQ6RXUFH&RPSXWHU$LGHG'HVLJQLQJ &$' WRROIRUWKH
:HDYLQJRI%DQDUDVL6DUHHV
   ,QWHUDFWLYH,QIRUPDWLRQ'LVVHPLQDWLRQ6\VWHP ,,'6
  0RELOHEDVHG$JUR$GYLVRU\6\VWHPIRU1RUWK(DVW,QGLD 0DJUL1(, 
  6RIWZDUHDQG3RUWDOIRU3Z'V
  ,75$DQG9LVYHVYDUD\D3KG6FKHPHLQLWDWLYHV

 2WKHU0DWWHUV   

  8VHRI+LQGLLQRIÀFLDOZRUNDQGH[SHFWHGWHFKQRORJ\GHYHORSPHQW
  57,
  3XEOLF*ULHYDQFHV5HGUHVVDO0HFKDQLVP
 ,QIRUPDWLRQ 'RFXPHQWDWLRQ&HQWUH /LEUDU\
 3DUOLDPHQW0DWWHUV
 *HQGHU(PSRZHUPHQW3UHYHQWLRQRIVH[XDOKDUDVVPHQWRI:RPHQDWZRUNSODFH
  $FWLYLWLHVXQGHUWDNHQIRUWKHEHQHÀWRIGLIIHUHQWO\DEOHGSHUVRQV

$SSHQGLFHV ,WR,,,  

 $SS, 6XPPDU\RI,PSRUWDQW$XGLW2EVHUYDWLRQV
 $SS,, $QQXDO3ODQ 
 $SS,,, (PSOR\HHV6WUXFWXUH



 &+$37(5
29(59,(:

9LVLRQ0LVVLRQ2EMHFWLYHV6WUXFWXUH
DQG)XQFWLRQVRI0HLW<
,QWURGXFWLRQ 7KH0LVVLRQ
 0LQLVWU\ RI (OHFWURQLFV DQG ,QIRUPDWLRQ  7KH 0LVVLRQ LV WR SURPRWH H*RYHUQDQFH IRU
7HFKQRORJ\ 0HLW<  LV UHVSRQVLEOH IRU HPSRZHULQJ FLWL]HQV SURPRWLQJ WKH ,QFOXVLYH
IRUPXODWLRQ LPSOHPHQWDWLRQ DQG UHYLHZ RI DQGVXVWDLQDEOHJURZWKRIWKH(OHFWURQLFV,7 
QDWLRQDO SROLFLHV LQ WKH ÀHOG RI ,QIRUPDWLRQ ,7H6LQGXVWULHVHQKDQFLQJ,QGLD·VUROHLQ*OREDO
7HFKQRORJ\(OHFWURQLFVDQG,QWHUQHW DOOPDWWHUV 3ODWIRUPV RI ,QWHUQHW *RYHUQDQFH DGRSWLQJ D
RWKHU WKDQ OLFHQVLQJ RI ,QWHUQHW 6HUYLFH P X O W L S U R Q J H G  D S S U R D F K  W K D W  L Q F O X G H V
3URYLGHU  GHYHORSPHQW RI KXPDQ UHVRXUFHV SURPRWLQJ
5 ' DQG LQQRYDWLRQ HQKDQFLQJ HIÀFLHQF\
7KH9LVLRQ
WKURXJKGLJLWDOVHUYLFHVDQGHQVXULQJDVHFXUH
 7KH 9LVLRQ RI WKH 0LQLVWU\ FRLQFLGHV ZLWK WKH F\EHUVSDFH
RYHUDUFKLQJ YLVLRQ RXWOLQHG XQGHU WKH 'LJLWDO
7KH2EMHFWLYHVDUHDVIROORZV
,QGLD SURJUDPPH QDPHV RI PDNLQJ 'LJLWDO
LQIUDVWUXFWXUH DV D XWLOLW\ WR HYHU\ FLWL]HQ  ‡ 3URYLGLQJHLQIUDVWUXFWXUHIRUGHOLYHU\RIH
*RYHUQDQFH DQG 6HUYLFHV RQ 'HPDQG DQG VHUYLFHV
'LJLWDOHPSRZHUPHQWRIFLWL]HQV
 ‡ 3URPRWLRQ RI HOHFWURQLFV KDUGZDUH



 $QQXDO5HSRUW

PDQXIDFWXULQJDQG,7,7H6LQGXVWU\ HGXFDWLRQDQG,QIRUPDWLRQ7HFKQRORJ\EDVHG
HGXFDWLRQ
 ‡ (QDEOLQJFUHDWLRQRI,QQRYDWLRQLQHPHUJLQJ
DUHDVRI,&7 (  0DWWHUVUHODWLQJWR&\EHU/DZVDGPLQLVWUDWLRQ
RIWKH,QIRUPDWLRQ7HFKQRORJ\$FW RI
 ‡ (QDEOLQJFUHDWLRQRI5 ',QIUDVWUXFWXUH
 DQGRWKHU,7UHODWHGODZV
 ‡ (VWDEOLVKPHQW RI PHFKDQLVP IRU 5 '
 0DWWHUVUHODWLQJWRSURPRWLRQDQG
WUDQVODWLRQ
PDQXIDFWXULQJRI6HPLFRQGXFWRU'HYLFHVLQ
 ‡ 3URYLGLQJ VXSSRUW IRU GHYHORSPHQW RI H WKHFRXQWU\H[FOXGLQJDOOPDWWHUVUHODWLQJWR
6NLOOVDQG.QRZOHGJHQHWZRUN 6HPLFRQGXFWRU&RPSOH[/LPLWHG 6&/ 
 ‡ 6HFXULQJ,QGLD·VF\EHUVSDFH 0RKDOL

 ‡ 3URPRWLQJWKHXVHRI,&7IRUPRUHLQFOXVLYH  ,QWHUDFWLRQLQ,7UHODWHGPDWWHUVZLWK

JURZWK LQWHUQDWLRQDODJHQFLHVDQGERGLHVHJ,QWHUQHW
IRU%XVLQHVV/LPLWHG ,)% ,QVWLWXWHIRU
 ‡ (QKDQFLQJ,QGLD·VUROHLQ*OREDO3ODWIRUPV
(GXFDWLRQLQ,QIRUPDWLRQ6RFLHW\ ,%, DQG
RI,QWHUQHW*RYHUQDQFH
,QWHUQDWLRQDO&RGH&RXQFLO²RQOLQH ,&& 
 )XQFWLRQV  $FWLYLWLHV DOORFDWLRQ RI
 ,QLWLDWLYHRQEULGJLQJWKH'LJLWDO'LYLGH0DWWHUV
EXVLQHVVUXOHV
UHODWLQJWR0HGLD/DE$VLD
(/(&7521,.,$85622&+$1$
 3URPRWLRQRI6WDQGDUGL]DWLRQ7HVWLQJDQG
35$8'<2*,.,0$175$/$<$ 
4XDOLW\LQ,7DQGVWDQGDUGL]DWLRQRISURFHGXUH
 3ROLF\PDWWHUVUHODWLQJWRLQIRUPDWLRQ IRU,7DSSOLFDWLRQDQG7DVNV
WHFKQRORJ\(OHFWURQLFVDQG,QWHUQHW DOO
(OHFWURQLFV([SRUWDQG&RPSXWHU6RIWZDUH
PDWWHUVRWKHUWKDQOLFHQVLQJRI,QWHUQHW6HUYLFH
3URPRWLRQ&RXQFLO (6& 
3URYLGHU 
1DWLRQDO,QIRUPDWLFV&HQWUH 1,& 
3URPRWLRQRILQWHUQHW,7DQG,7HQDEOHG
VHUYLFHV ,QLWLDWLYHVIRUGHYHORSPHQWRI
+DUGZDUH6RIWZDUHLQGXVWU\LQFOXGLQJ
 $3URPRWLRQRI'LJLWDO7UDQVDFWLRQVLQFOXGLQJ
NQRZOHGJH²EDVHGHQWHUSULVHVPHDVXUHVIRU
'LJLWDO3D\PHQWV
SURPRWLQJ,7H[SRUWVDQGFRPSHWLWLYHQHVVRI
 $VVLVWDQFHWRRWKHUGHSDUWPHQWVLQWKH WKHLQGXVWU\
SURPRWLRQRI(*RYHUQDQFH(&RPPHUFH(
$OOPDWWHUVUHODWLQJWRSHUVRQQHOXQGHUWKH
0HGLFLQH(,QIUDVWUXFWXUHHWF 
FRQWURORIWKH0LQLVWU\ 
 3URPRWLRQRI,QIRUPDWLRQ7HFKQRORJ\
8QLTXH,GHQWLÀFDWLRQ$XWKRULW\RI,QGLD
8,'$, 
1RWH
 ,QVHUWHGYLGH$PHQGPHQWVHULHVQRGDWHG(DUOLHU DV'HSDUWPHQW PRGLÀHGYLGH$PHQGPHQWVHULHVQRGDWHG

 ,QVHUWHGYLGH$PHQGPHQWVHULHVQRGDWHG
 ,QVHUWHGYLGH$PHQGPHQWVHULHVQRGDWHGDQGIXUWKHUPRGLÀHGYLGHQRGDWHG
 0RGLÀHGYLGH$PHQGPHQWVHULHVQRGDWHG)XUWKHUPRGLÀHGYLGHDPHQGPHQWVHULHVQRGDWHG
 ,QVHUWHGYLGH$PHQGPHQWVHULHVQRGDWHG (DUOLHULQVHUWHGXQGHU3ODQQLQJ&RPPLVVLRQYLGH$PHQGPHQW6HULHVQR
GDWHGDQGLQ1,7,$D\RJYLGHVHULHVQR


0LQLVWU\RI(OHFWURQLFV ,QIRUPDWLRQ7HFKQRORJ\ 0HLW<

2UJDQL]DWLRQ6WUXFWXUH  )$ *URXS &RRUGLQDWRUV DQG +HDGV RI

 7KH6HFUHWDULDWRIWKH0LQLVWU\RI(OHFWURQLFVDQG 2UJDQLVDWLRQVXQGHUWKHDGPLQLVWUDWLYHFKDUJH
,QIRUPDWLRQ7HFKQRORJ\LVKHDGHGE\6HFUHWDU\ RI 0HLW\ 7KH RUJDQLVDWLRQDO FKDUW LV JLYHQ
ZKRLVDVVLVWHGE\RQH$GGLWLRQDO6HFUHWDU\$6 EHORZ

$VRQ

/LPLWHG

,Q RUGHU WR RSHUDWLRQDOLVH WKH REMHFWLYHV RI 0HLW< 6RFLHWLHV YL]&'$&&0(71,(/,76$0((5673,
VFKHPHVDUHIRUPXODWHGDQGLPSOHPHQWHGHLWKHU DQG (51(7  )RXU 6WDWXWRU\ 2UJDQL]DWLRQV YL]
GLUHFWO\ RU WKURXJK LWV 5HVSRQVLELOLW\ &HQWHUV 8,'$, ,&(57 &&$ DQG &$7  DQG IRXU 6HFWLRQ 
2UJDQL]DWLRQV,QVWLWXWLRQV XQGHULWVMXULVGLFWLRQ FRPSDQLHV YL] 1,&6, 1,;, &6& H*RYHUQDQFH
7RPDNHWKHWHFKQRORJ\UREXVWDQGVWDWHRIWKHDUW 6HUYLFHV,QGLD/LPLWHGDQG0/$ VXSSRUWHGE\WZR
FROODERUDWLRQVZLWKWKHDFDGHPLDDQGWKHSULYDWH $GYLVRU\ &RXQFLOV YL] ,06&  ,67'&  :*V 
SXEOLF VHFWRU LV DOVR VRXJKW  0HLW< KDV WZR XQGHULWVFKDUJHWRFDUU\RXWWKHEXVLQHVVDOORFDWHG
$WWDFKHG2IÀFHV YL]1,&674& VL[$XWRQRPRXV WRWKH0LQLVWU\


 $QQXDO5HSRUW

'DWH

&LWL]HQ V&OLHQW V&KDUWHU &&& )RUPRUHGHWDLOVRQ&&&RI0HLW<SOHDVHUHIHUWRRXUZHEVLWHXUO

PHLW\JRYLQFRQWHQWVFLWL]HQVBFKDUWHU ZKLFKLVDSDUWRI$ERXW0HLW< 


 &+$37(5
',*,7$/,1',$
32:(572(032:(5

'LJLWDO,QGLDLVDQXPEUHOODSURJUDPPHWRSUHSDUH YLVLRQDUHDV
,QGLD IRU D NQRZOHGJH EDVHG WUDQVIRUPDWLRQ ,W
 'LJLWDO,QIUDVWUXFWXUHDVD8WLOLW\WR(YHU\&LWL]HQ
ZHDYHV WRJHWKHU D ODUJH QXPEHU RI LGHDV DQG
WKRXJKWVLQWRDVLQJOHFRPSUHKHQVLYHYLVLRQVRWKDW  *RYHUQDQFHDQG6HUYLFHVRQ'HPDQG
HDFKRIWKHPLVVHHQDVSDUWRIDODUJHUJRDO7KH  'LJLWDO(PSRZHUPHQWRI&LWL]HQV
IRFXV RI 'LJLWDO ,QGLD SURJUDPPH LV RQ EHLQJ
9LVLRQ$UHD'LJLWDO,QIUDVWUXFWXUHDVD8WLOLW\
WUDQVIRUPDWLYH WR UHDOL]H  ,7 ,QGLDQ 7DOHQW   ,7
WR(YHU\&LWL]HQLQFOXGHV
,QIRUPDWLRQ7HFKQRORJ\  ,7 ,QGLD7RPRUURZ DQG
LV RQ PDNLQJ WHFKQRORJ\ FHQWUDO WR HQDEOLQJ ‡ $YDLODELOLW\RIKLJKVSHHGLQWHUQHWDVDFRUHXWLOLW\
FKDQJH 7KLV SURJUDPPH SXOOV WRJHWKHU PDQ\ IRUGHOLYHU\RIVHUYLFHVWRFLWL]HQV
H[LVWLQJ VFKHPHV 7KHVH VFKHPHV KDYH EHHQ ‡ &UDGOH WR JUDYH GLJLWDO LGHQWLW\ WKDW LV XQLTXH
UHVWUXFWXUHG DQG UHIRFXVHG DQG DUH EHLQJ OLIHORQJ RQOLQH DQG DXWKHQWLFDEOH WR HYHU\
LPSOHPHQWHGLQDV\QFKURQL]HGPDQQHU FLWL]HQ
9LVLRQRI'LJLWDO,QGLD ‡  0RELOHSKRQH EDQNDFFRXQWHQDEOLQJFLWL]HQ
7KH'LJLWDO,QGLDSURJUDPLVFHQWHUHGRQWKUHHNH\ SDUWLFLSDWLRQLQGLJLWDO ÀQDQFLDOVSDFH


 $QQXDO5HSRUW

‡ (DV\DFFHVVWRD&RPPRQ6HUYLFHV&HQWUH DQGGHOLYHU\SODWIRUPVZKLFKLQWXUQZLOOOHDGWRWKH
FUHDWLRQRIDVHOIUHOLDQWNQRZOHGJHHFRQRP\7KH
‡ 6KDUHDEOHSULYDWHVSDFHRQDSXEOLFFORXG
IRFXVLVRQLPSURYLQJGLUHFWVHUYLFHVWRFLWL]HQVDV
‡ 6DIHDQGVHFXUHF\EHUVSDFH ZHOODVPDNLQJWKHFRXQWU\UHDG\IRUHDVHRIGRLQJ
9LVLRQ $UHD  *RYHUQDQFH  6HUYLFHV RQ EXVLQHVV $FFRUGLQJO\ WKH LQLWLDWLYHV XQGHU WKLV
'HPDQGLQFOXGHV SURJUDPPHDLPWREXLOGDQGVXVWDLQDOODVVRFLDWHG
OD\HUV UHTXLUHG IRU D GLJLWDO HPSRZHUPHQW RI WKH
‡ 6HDPOHVVO\ LQWHJUDWHG VHUYLFHV DFURVV
SHRSOHDQGEXLOGLQJGLJLWDOHFRQRP\
GHSDUWPHQWVRUMXULVGLFWLRQV
7RHQVXUHIRFXVRQHDFKRIWKHVHOD\HUVIROORZLQJ
‡ 6HUYLFHV DYDLODELOLW\ LQ UHDO WLPH IURP RQOLQH 
QLQHSLOODUVRIJURZWKDUHDVKDYHEHHQLQGHQWLÀHG
PRELOHSODWIRUPV
XQGHUWKH'LJLWDO,QGLDSURJUDPPH
‡ $OO FLWL]HQ HQWLWOHPHQWV WR EH DYDLODEOH RQ WKH
 %URDGEDQG+LJKZD\V
FORXG
 8QLYHUVDO$FFHVVWR0RELOH&RQQHFWLYLW\
‡ 'LJLWDOO\ WUDQVIRUPHG VHUYLFHV IRU LPSURYLQJ
HDVHRIGRLQJEXVLQHVV  3XEOLF,QWHUQHW$FFHVV3URJUDPPH

‡ 0DNLQJ ÀQDQFLDO WUDQVDFWLRQV HOHFWURQLF   H*RYHUQDQFH ² 5HIRUPLQJ *RYHUQPHQW

FDVKOHVVDQG WKURXJK7HFKQRORJ\

‡ /HYHUDJLQJ*,6IRUGHFLVLRQVXSSRUWV\VWHPV   H.UDQWL(OHFWURQLF'HOLYHU\RI6HUYLFHV

GHYHORSPHQW  ,QIRUPDWLRQIRU$OO
9LVLRQ$UHD'LJLWDO(PSRZHUPHQWRI&LWL]HQV  (OHFWURQLFV0DQXIDFWXULQJ²7DUJHW1(7=(52
LQFOXGHV LPSRUWV
‡ 8QLYHUVDOGLJLWDOOLWHUDF\  ,7IRU-REVDQG
‡ $FFHVVLEOHGLJLWDOUHVRXUFHVXQLYHUVDOO\  (DUO\+DUYHVW3URJUDPPHV
‡ $OO GRFXPHQWV FHUWLÀFDWHV WR EH DYDLODEOH RQ ,PSOHPHQWDWLRQ$SSURDFK
FORXG
'LJLWDO,QGLDLVDQXPEUHOODSURJUDPPHWKDWFRYHUV
‡ $YDLODELOLW\ RI GLJLWDO UHVRXUFHV  VHUYLFHV LQ PXOWLSOH*RYHUQPHQW0LQLVWULHVDQG'HSDUWPHQWV,W
,QGLDQODQJXDJHV ZHDYHV WRJHWKHU D ODUJH QXPEHU RI LGHDV DQG
‡ &ROODERUDWLYHGLJLWDOSODWIRUPVIRUSDUWLFLSDWLYH WKRXJKWVLQWRDVLQJOHFRPSUHKHQVLYHYLVLRQVRWKDW
JRYHUQDQFHDQG HDFKRIWKHPFDQEHLPSOHPHQWHGDVSDUWRIDODUJHU
JRDO(DFKLQGLYLGXDOHOHPHQWVWDQGVRQLWVRZQEXW
‡ 3RUWDELOLW\RIDOOHQWLWOHPHQWVWKURXJKFORXG
LVDOVRSDUWRIWKHHQWLUH*RYHUQPHQW'LJLWDO,QGLDLV
3LOODUVRI'LJLWDO,QGLD LPSOHPHQWHGE\WKHHQWLUH*RYHUQPHQWDQGEHLQJ
7KLV WUDQVIRUPDWLRQDO SURJUDPPH KDV EHHQ FRRUGLQDWHGE\WKH0HLW<
GHVLJQHG WR EXLOG KROLVWLF FDSDELOLWLHV DFURVV $OO WKH LQLWLDWLYHV LQFOXGLQJ HVWDEOLVKLQJ DQG
LQIUDVWUXFWXUHPDQXIDFWXULQJSURFHVVHVVNLOOVHWV


0LQLVWU\RI(OHFWURQLFV ,QIRUPDWLRQ7HFKQRORJ\ 0HLW<

H[SDQGLQJ FRUH ,&7 LQIUDVWUXFWXUH WR GHOLYHU\ RI DQG

VHUYLFHV XQGHU WKLV SURJUDPPH KDYH D GHÀQLWLYH
'LJLWDO ,QIUDVWUXFWXUH DV D &RUH 8WLOLW\ WR
FRPSOHWLRQ WLPH WDUJHW DQG DUH EHLQJ WUDFNHG
(YHU\&LWL]HQ 
DFFRUGLQJO\0DMRULW\RIWKHLQLWLDWLYHVDUHSODQQHGWR
EH UHDOL]HG ZLWKLQ QH[W WKUHH \HDUV 0DQ\ RI WKH 'LJLWDO,GHQWLW\$DGKDDU$QHIÀFLHQWDQG
TXLFNZLQV EHLQJ WUDFNHG XQGHU WKH XPEUHOOD RI WDUJHWHGVHUYLFHGHOLYHU\SODWIRUP
´(DUO\ +DUYHVW 3URJUDPPHVµ  DQG FLWL]HQ 8QLTXH,GHQWLÀFDWLRQ$XWKRULW\RI,QGLD 8,'$, LVD
FRPPXQLFDWLRQ LQLWLDWLYHV EHLQJ WUDFNHG XQGHU WUDQVIRUPDWLRQDO HJRYHUQDQFH LQLWLDWLYH WKDW
´,QIRUPDWLRQ IRU $OOµ  KDYH EHHQ LPSOHPHQWHG LQ LQYROYHV HVWDEOLVKLQJ DQ LGHQWLW\ LQIUDVWUXFWXUH IRU
 SURYLGLQJ XQLTXH GLJLWDO LGHQWLW\ WR UHVLGHQWV 7KH
7KH 'LJLWDO ,QGLD SURJUDPPH DLPV DW SXOOLQJ GLJLWDO,'VDUHYHULÀDEOHRQOLQHDVDWRROWRHQKDQFH
WRJHWKHU PDQ\ H[LVWLQJ VFKHPHV 7KH VFKHPHV WKHTXDOLW\RIVHUYLFHGHOLYHU\PHFKDQLVPVLPSURYH
KDYH EHHQ UHVWUXFWXUHG DQG UHIRFXVHG DQG DUH JRYHUQDQFH DLG ÀQDQFLDO LQFOXVLRQ DQG SURPRWH
EHLQJLPSOHPHQWHGLQDV\QFKURQL]HGPDQQHU7KH ÀVFDOSUXGHQFH
FRPPRQEUDQGLQJRISURJUDPPHVDV'LJLWDO,QGLD 8QLTXH,GHQWLÀFDWLRQ$XWKRULW\RI,QGLD 8,'$, KDV
KLJKOLJKWV WKHLU WUDQVIRUPDWLYH LPSDFW :KLOH EHHQPDQGDWHGWRHPSRZHUHYHU\UHVLGHQWRI,QGLD
LPSOHPHQWLQJWKLVSURJUDP*RYHUQPHQWRI,QGLDLV ZLWKD8QLTXH,GHQWLÀFDWLRQ1XPEHUDQGSURYLGHD
PDNLQJ ZLGHU FRQVXOWDWLRQ ZLWK &LWL]HQV ,QGXVWU\ GLJLWDO SODWIRUP IRU DXWKHQWLFDWLRQ LQ DQ HDV\
DQG$FDGHPLDWRGLVFXVVYDULRXVLVVXHVWRDUULYHDW HOHFWURQLFFRVWHIIHFWLYHZD\7KH$DGKDDU6\VWHP
LQQRYDWLYH VROXWLRQV IRU DFKLHYLQJ WKH GHVLUHG LVEXLOWRQDVRXQGVWUDWHJ\DQGDVWURQJWHFKQRORJ\
RXWFRPH RI 'LJLWDO ,QGLD 0HLW< KDG DOUHDG\ EDFNERQHDQGKDVQRZHYROYHGLQWRDYLWDOGLJLWDO
LPSOHPHQWHG D GLJLWDO SODWIRUP QDPHG DV LGHQWLW\LQIUDVWUXFWXUH
´ P \ * R Y µ Z Z Z P \ J R Y Q L F  L Q  W R  I D F L O L W D W H
2QFH WKH HQUROPHQW WDNHV SODFH WKH GDWD
FROODERUDWLYHDQGSDUWLFLSDWLYHJRYHUQDQFH
XQGHUJRHV YDULRXV VWDJHV RI VFUHHQLQJ DQG
3URJUDPPHPDQDJHPHQWDQG0RQLWRULQJ YDOLGDWLRQV LQ &HQWUDO ,GHQWLWLHV 'DWD 5HSRVLWRU\
3URJUDPPHPDQDJHPHQWVWUXFWXUHRI'LJLWDO,QGLD &,'5  7KLV HQVXUHV WKDW WKH VRXUFH RI GDWD LV
KDV EHHQ HVWDEOLVKHG IRU PRQLWRULQJ WKH DXWKHQWLFEHVLGHVHQVXULQJWKDWQRGXSOLFDWHH[LVWV
LPSOHPHQWDWLRQRIWKH'LJLWDO,QGLD3URJUDPPH.H\ 4XDOLW\ FKHFNV DUH GRQH RQ GHPRJUDSKLF DQG
FRPSRQHQWV RI WKH PDQDJHPHQW VWUXFWXUH ZRXOG ELRPHWULF GDWD FROOHFWHG IURP UHVLGHQWV $IWHU
FRQVLVWRID0RQLWRULQJ&RPPLWWHHRQ'LJLWDO,QGLD SDVVLQJ WKH GDWD TXDOLW\ FKHFNV DQG RWKHU
KHDGHGE\WKH3ULPH0LQLVWHU'LJLWDO,QGLD$GYLVRU\ YDOLGDWLRQVWKHSDFNHWJRHVIRUGHGXSOLFDWLRQDQG
*URXSFKDLUHGE\WKH0LQLVWHURI(OHFWURQLFVDQG,7 $DGKDDUJHWVJHQHUDWHG
DQ $SH[ &RPPLWWHH FKDLUHG E\ WKH &DELQHW .H\IHDWXUHVRI$DGKDDU
6HFUHWDU\DQGWKH([SHQGLWXUH)LQDQFH&RPPLWWHH
‡ GLJLW UDQGRP XQLTXH QXPEHU REWDLQHG
()& &RPPLWWHHRQ1RQ3ODQ([SHQGLWXUH &1( 
WKURXJKGHGXSOLFDWLRQLQYROYLQJELRPHWULFV
7KHPHHWLQJVRI$SH[&RPPLWWHHRQ'LJLWDO,QGLD
‡ 2QO\DQXPEHUDQGQRWDFDUG
ZHUHKHOGRQ


 $QQXDO5HSRUW

‡ 1XPEHUGRHVQRWFRQWDLQDQ\LQWHOOLJHQFH LVWRSURYLGHDWUXVWHGHOHFWURQLFHQYLURQPHQWZKHUH
WKHLQGLYLGXDOXVHUVFDQWUDQVDFWHDVLO\DQGVHFXUHO\
‡ 6FDODEOHWHFKQRORJ\DUFKLWHFWXUH
ZLWKWKH*RYHUQPHQW0RUHRYHUH3UDPDDQSURYLGHV
‡ 2SHQVRXUFHWHFKQRORJLHV D XQLIRUP DSSURDFK WR PDQDJH LGHQWLÀHG
‡ 2QH5HVLGHQW 2QH$DGKDDU DXWKHQWLFDWLRQV RI DOO FLWL]HQV IRU WKH GHOLYHU\ RI
YDULRXV SXEOLF VHUYLFHV RYHU LQWHUQHW DQG PRELOH
$DGKDDU EHLQJ D XQLTXH GLJLWDO ,' ² SURYLGHV D
SODWIRUPV
SRZHUIXO SODWIRUP IRU DXWKHQWLFDWLQJ D UHVLGHQW
DQ\WLPHDQGDQ\ZKHUHZKLFKLVLQOLQHZLWKWKHYLVLRQ 0DMRU VWHSV WRZDUGV DFKLHYLQJ WKH GHVLUHG
RI WKH 8,'$, 7KH SXUSRVH RI DXWKHQWLFDWLRQ LV WR RXWFRPHDUH
HQDEOH UHVLGHQWV WR SURYH WKHLU LGHQWLW\ DQG IRU L  1RWLÀFDWLRQRIH3UDPDDQ)UDPHZRUN
VHUYLFHSURYLGHUVWRFRQÀUPWKDWWKHUHVLGHQWVDUH
LL  'HYHORSPHQWRIH$XWKHQWLFDWLRQVWDQGDUGV
¶ZKRWKH\VD\WKH\DUH·LQRUGHUWRVXSSO\VHUYLFHV
DQGJLYHDFFHVVWREHQHÀWV LLL 7ZRSKDVHGDSSURDFKLQLPSOHPHQWDWLRQ
H3UDPDDQ D 3 K D V H  ,   ' H Y H O R S P H Q W  R I  S O X J J D E O H
DXWKHQWLFDWLRQ FRPSRQHQWVPRGXOHV IRU
0HLW< KDV FRQFHSWXDOL]HG WKH H3UDPDDQ
JRYHUQPHQW DSSOLFDWLRQV DQG UHODWHG $3,V IRU
IUDPHZRUN QRWLÀHGLQWKH*D]HWWHRI,QGLDLQ'HF
LQWHJUDWLRQ ,W ZLOO KHOS GHSDUWPHQWV WR
  IRU H$XWKHQWLFDWLRQ IRU SXEOLF VHUYLFHV WR
LPSOHPHQWHDXWKHQWLFDWLRQDVGHÀQHGLQWKHH
HOHFWURQLFDOO\GHOLYHUWKHJRYHUQPHQWVHUYLFHVWRLWV
3UDPDDQIUDPHZRUNDQGDVSHUWKHVWDQGDUGV
LQWHQGHGUHFLSLHQWVLQDVHFXUHGPDQQHUDVZHOODV
NHHSLQJ HDXWKHQWLFDWLRQ PHFKDQLVPV UREXVW
WREXLOGFLWL]HQ·VWUXVWLQRQOLQHHQYLURQPHQWZKLFKLV
XQLIRUPDQGFRQVLVWHQW
DOZD\VSURQHWRLGHQWLW\WKHIWVDQGRWKHUDVVRFLDWHG
ULVNV 7KH ´H3UDPDDQ )UDPHZRUN IRU H E 3KDVH,,2IIHUH3UDPDDQDVDQDXWKHQWLFDWLRQ
$XWKHQWLFDWLRQµZDVQRWLÀHGE\0HLW<LQ'HFHPEHU VHUYLFH WR GHSDUWPHQWV ZLWK DOO OHYHOV RI
 DXWKHQWLFDWLRQ DV GHÀQHG LQ H3UDPDDQ
IUDPHZRUN DQG IDFLOLWDWH RQERDUGLQJ RI
7KHREMHFWLYHLVWRVHWXSD1DWLRQDOH$XWKHQWLFDWLRQ
JRYHUQPHQW GHSDUWPHQWV E\ SURYLGLQJ
VHUYLFH FDOOHG H3UDPDDQ DORQJ ZLWK $DGKDDU
LQWHJUDWLRQ $3,V JXLGHOLQH GRFXPHQWV DQG
EDVHG DXWKHQWLFDWLRQ IRU WKH JRYHUQPHQW
WHFKQLFDOVXSSRUW
GHSDUWPHQWV 7KH LPSOHPHQWLQJ DJHQF\ IRU   H
3UDPDDQLV&'$&0XPEDL7KHRYHUDOOREMHFWLYH


0LQLVWU\RI(OHFWURQLFV ,QIRUPDWLRQ7HFKQRORJ\ 0HLW<

$FKLHYHPHQWV 2QOLQHH6LJQ H+DVWDNVKDU 

‡ )RXUOHYHOVRIDXWKHQWLFDWLRQ /RJLQ3DVVZRUG 2QH RI WKH LQLWLDWLYHV WDNHQ XQGHU 'LJLWDO ,QGLD
273 'LJLWDO &HUWLÀFDWH )LQJHUSULQW %LRPHWULF 3URJUDPPH LV WR SURYLGH QRQUHSXGLDEOH
XVLQJ$DGKDDU DUHDYDLODEOHLQSURGXFWLRQVHW DXWKHQWLFDWLRQ RI DSSOLFDQW·V LGHQWLW\ WKURXJK D
XSRQFORXGDW1,& IDFLOLW\FDOOHGH6LJQ7KLVIDFLOLW\LVDQRQOLQHGLJLWDO
VLJQDWXUHVHUYLFHH6LJQZDVIRUPDOO\ODXQFKHGE\
‡ ,PDJH 3DVVZRUG LQWURGXFHG DV D IDFWRU IRU
+RQ·EOH3ULPH0LQLVWHURQ-XO\
DXWKHQWLFDWLRQZKLFKLVDQHZIHDWXUH
)RU FUHDWLQJ HOHFWURQLF VLJQDWXUHV WKH VLJQHU LV
‡ 3URYLGHG D VROXWLRQ FRPSDWLEOH ZLWK DOO WKH
UHTXLUHG WR REWDLQ D 'LJLWDO 6LJQDWXUH &HUWLÀFDWH
EURZVHUVZLWKRXWDSSOHWV
'6& IURPD&HUWLI\LQJ$XWKRULW\ &$ OLFHQVHGE\
‡ $ QHZ LPSURYHG YHUVLRQ RI H3UDPDDQ ZLWK WKH&RQWUROOHURI&HUWLI\LQJ$XWKRULWLHV &&$ XQGHU
EHWWHUSHUIRUPDQFHODXQFKHG WKH,QIRUPDWLRQ7HFKQRORJ\ ,7 $FW%HIRUHD
‡ $PRELOHDSSLGGHYHORSHGIRUH3UDPDDQ &$LVVXHVD'6&WKHLGHQWLW\DQGDGGUHVVRIWKH
VLJQHU PXVW EH YHULÀHG 7KH SULYDWH NH\ XVHG IRU
‡ 7KUHH UHJLRQ ZLVH ZRUNVKRSV RUJDQL]HG WR
FUHDWLQJ WKH HOHFWURQLF VLJQDWXUH LV VWRUHG LQ
VSUHDGDZDUHQHVVDERXWH3UDPDDQ
KDUGZDUH FU\SWRJUDSKLF WRNHQ ZKLFK LV VHFXUHG
‡ 6HUYLFHVUHJLVWHUHG ZLWK D SDVVZRUGSLQ 7KLV FXUUHQW VFKHPH RI LQ
‡ 6HUYLFHVGHSDUWPHQWVLQWHJUDWHG SHUVRQSK\VLFDOSUHVHQFHSDSHUGRFXPHQWEDVHG
LGHQWLW\  DGGUHVV YHULÀFDWLRQ DQG LVVXDQFH RI


 $QQXDO5HSRUW

KDUGZDUHFU\SWRJUDSKLFWRNHQVGRHVQRWVFDOHWRD DFURVV WKH FRXQWU\ LQ 0DUFK  WR FRQQHFW DOO
ELOOLRQ SHRSOH )RU RIIHULQJ IXOO\ SDSHUOHVV FLWL]HQ 6WDWH87 +HDGTXDUWHUV XS WR WKH %ORFN OHYHO YLD
VHUYLFHV PDVV DGRSWLRQ RI GLJLWDO VLJQDWXUH LV 'LVWULFW VXE'LYLVLRQDO +HDGTXDUWHUV LQ D YHUWLFDO
QHFHVVDU\$VLPSOHWRXVHRQOLQHVHUYLFHLVUHTXLUHG KLHUDUFKLFDO VWUXFWXUH ZLWK D PLQLPXP EDQGZLGWK
WRDOORZHYHU\RQHWRKDYHWKHDELOLW\WRGLJLWDOO\VLJQ FDSDFLW\RI0ESVSHUOLQN(DFKRIWKH6WDWH87
HOHFWURQLFGRFXPHQWV FDQHQKDQFHWKHEDQGZLGWKXSWR0ESVEHWZHHQ
6+4DQG'+4DQGXSWR0ESVEHWZHHQ'+4DQG
H6LJQLVDQRQOLQHHOHFWURQLFVLJQDWXUHVHUYLFHZKLFK
%+4GHSHQGLQJXSRQWKHXWLOL]DWLRQ
FDQEHLQWHJUDWHGZLWKVHUYLFHGHOLYHU\DSSOLFDWLRQV
YLDDQRSHQ$3,WRIDFLOLWDWHDQ$DGKDDUKROGHUWR $W SUHVHQW 6:$1V DUH RSHUDWLRQDO LQ  6WDWHV
GLJLWDOO\VLJQDGRFXPHQW8VLQJDXWKHQWLFDWLRQRI Q D P H O \  $ Q G K U D  3 U D G H V K   & K D Q G L J D U K 
WKH$DGKDDUKROGHUWKURXJK$DGKDDUH.<&VHUYLFH &KKDWWLVJDUK 'HOKL *XMDUDW *RD +DU\DQD
RQOLQHHOHFWURQLFVLJQDWXUHVHUYLFHLVIDFLOLWDWHG +LPDFKDO3UDGHVK-KDUNKDQG.HUDOD.DUQDWDND
/DNVKDGZHHS 0DKDUDVKWUD 2ULVVD 3XQMDE
1RWLÀFDWLRQ RI (OHFWURQLF 6LJQDWXUH RU (OHFWURQLF
3XGXFKHUU\ 6LNNLP 7DPLO 1DGX 7ULSXUD 8WWDU
$XWKHQWLFDWLRQ 7HFKQLTXH DQG 3URFHGXUH 5XOHV
3UDGHVK :HVW %HQJDO $VVDP %LKDU 0DGK\D
 LQ ZKLFK WKH WHFKQLTXH NQRZQ DV ´H
3UDGHVK 8WWDUDNKDQG 0DQLSXU $UXQDFKDO
DXWKHQWLFDWLRQ WHFKQLTXH XVLQJ $DGKDDU  H.<&
3UDGHVK 0L]RUDP 1DJDODQG 0HJKDOD\D
VHUYLFHVµ IRU WKH H6LJQ 2QOLQH 6HUYLFH LQWURGXFHG
5DMDVWKDQ'DGDU 1DJDU+DYHOLDQG'DPDQ 'LX
ZKLFKDOORZVHYHU\RQHWRKDYHWKHDELOLW\WRGLJLWDOO\
7KH6WDWHV87VDUHXWLOL]LQJWKHFRUHLQIUDVWUXFWXUHRI
VLJQHOHFWURQLFGRFXPHQWV (0XGKUDDQG&'$&
6:$1IRUSURYLGLQJWKHFORVHGXVHUFRQQHFWLYLW\WR
JRYW(63 DUHHPSDQHOOHGWRRIIHUH6LJQ6HUYLFHV
YDULRXV*RYHUQPHQWRIÀFHVLQWKH6WDWH87V7KHVH
$FKLHYHPHQWV RIÀFHVDFFHVVWKHLUDSSOLFDWLRQVWKURXJK6:$1LQ
‡ &'$&·VH6LJQ6HUYLFHHQDEOHVLQVWDQWVLJQLQJ VHFXUHGHQYLURQPHQWKRVWHGDW6WDWH'DWD&HQWUHV
RI GRFXPHQWV RQOLQH E\ FLWL]HQV LQ D OHJDOO\ 6'&V 6:$1LPSOHPHQWDWLRQLVKRZHYHUSHQGLQJ
DFFHSWDEOHIRUP7KHVHUYLFHZDVODXQFKHGE\ LQWKHVWDWHRI- .DQG87RI$QGDPDQ 1LFREDU
6KUL5DYL6KDQNDU3UDVDG+RQ·EOH0LQLVWHUIRU ,VODQGVDQGWKHFRQFHUQHGVWDWH87JRYHUQPHQWLV
/DZ -XVWLFHDQG(OHFWURQLFV ,7*RYHUQPHQW WDNLQJIXUWKHUQHFHVVDU\DFWLRQLQWKLVUHJDUG
RI,QGLDRQ6HSW7KHVHUYLFHHQDEOHVDQ 7KH6WDWHVDUHXWLOL]LQJFRUHLQIUDVWUXFWXUHRI6:$1
$DGKDDUKROGHUZLWKUHJLVWHUHGPRELOHQXPEHU IRU FRQQHFWLYLW\ DQG GHGLFDWHG FORVH XVHU
DQG $DGKDDU WR HOHFWURQLFDOO\ VLJQ D DSSOLFDWLRQ DFFHVV FRQQHFWLYLW\ 6:$1 KDV EHHQ
IRUPGRFXPHQWDQ\WLPHDQGDQ\ZKHUHXVLQJD LQWHJUDWHGZLWK1.1LQ6WDWHV87VDW6+4OHYHO
GHYLFH DQG  DW WKH GLVWULFW OHYHO WR SURYLGH WKH KLJK
‡ &'$&KDVHQDEOHGDJHQFLHVWROHYHUDJHH EDQGZLGWK  3UHVHQWO\  6WDWHV87V DUH XWLOL]LQJ
+DVWDNVKDUIRUH6LJQSXUSRVHV PRUH WKDQ  RI EDQGZLGWK RI WKH H[LVWLQJ OLQN
FDSDFLW\ 7R PRQLWRU WKH SHUIRUPDQFH RI 6:$1V
‡ 7RWDO6LJQDWXUHVRIIHUHG
WKH'HSDUWPHQWKDVPDQGDWHGSRVLWLRQLQJRI7KLUG
6WDWH:LGH$UHD1HWZRUN 6:$1  3DUW\$XGLWRUV 73$V LQWKH6WDWHV87V$VRQGDWH
7KH *RYHUQPHQW KDG DSSURYHG WKH 6FKHPH IRU 6WDWHVKDYHHPSDQHOOHGWKH73$VIRUPRQLWRULQJ
HVWDEOLVKLQJ 6WDWH :LGH $UHD 1HWZRUNV 6:$1V  WKH SHUIRUPDQFH RI WKH 6:$1V LQ WKH UHVSHFWLYH


0LQLVWU\RI(OHFWURQLFV ,QIRUPDWLRQ7HFKQRORJ\ 0HLW<

6WDWHV87V 5HPDLQLQJ 6WDWHV87V DUH LQ WKH 1DGX +LPDFKDO 3UDGHVK -KDUNKDQG  KDYH
SURFHVVRIHPSDQHOPHQWRI73$ FRPSOHWHG&ORXGHQDEOHPHQW
 6WDWH'DWD&HQWUH 6LQFH WKH 6'&V DUH H[SHFWHG WR KRVW FULWLFDO
*RYHUQPHQW DSSOLFDWLRQVVHUYLFHV LQFOXGLQJ
6WDWH 'DWD &HQWUH 6'&  LV RQH RI WKH WKUHH FRUH
LPSRUWDQWFLWL]HQGDWDSURWHFWLRQRIWKHVDPHLVRI
LQIUDVWUXFWXUH FRPSRQHQWV 8QGHU WKH 6'&
SULPHLPSRUWDQFH,QWKLVUHJDUGWKH6'&VFKHPH
6FKHPH D 'DWD &HQWUHV LV SURYLGHG LQ DOO WKH
KDV SURYLVLRQHG IRU D 'LVDVWHU 5HFRYHU\ '5 
6WDWHV87V WR FRQVROLGDWH VHUYLFHV DSSOLFDWLRQV
PHFKDQLVP WKURXJK VWRUDJH EDVHG UHSOLFDWLRQ DV
DQG LQIUDVWUXFWXUH LQ RUGHU WR SURYLGH HIÀFLHQW
SDUWRIWKH6'&HQKDQFHPHQW7LOOQRZ6WDWHVDUH
HOHFWURQLF GHOLYHU\ RI *RYHUQPHQW WR *RYHUQPHQW
'5HQDEOHG
**  *RYHUQPHQW WR &LWL]HQ *&  DQG
*RYHUQPHQW WR %XVLQHVV *%  VHUYLFHV 7KHVH 0HLW< LV SURYLGLQJ FRQWLQXRXV VXSSRUW DQG
VHUYLFHV FDQ EH UHQGHUHG E\ 6WDWHV WKURXJK JXLGDQFH WR 6WDWHV87V WR HQVXUH VPRRWK
FRPPRQ VHUYLFH GHOLYHU\ SODWIRUPV VHDPOHVVO\ LPSOHPHQWDWLRQ RI WKH SURMHFW 3ROLF\ JXLGHOLQHV
VXSSRUWHGE\FRUHFRQQHFWLYLW\LQIUDVWUXFWXUHVXFK UROHV DQG UHVSRQVLELOLWLHV RI DJHQFLHV DQG
DV6:$1DQG&6&DVWKHIURQWHQGGHOLYHU\RXWOHWV VWDNHKROGHUV DQG LVVXHV DQG FRQFHUQV WR EH
DWWKHYLOODJHOHYHO6RPHRIWKHNH\IXQFWLRQDOLWLHV DGGUHVVHGLQSODQQLQJLPSOHPHQWDWLRQRSHUDWLRQ
WKDW FDQ EH SURYLGHG WKURXJK 6'& DUH FHQWUDO  PDLQWHQDQFH RI WKH 'DWD &HQWUHV KDYH EHHQ
UHSRVLWRU\IRUWKH6WDWHVHFXUHGDWDVWRUDJHRQOLQH IRUPXODWHG *XLGHOLQHVDUHXSGDWHGIURPWLPHWR
GHOLYHU\ RI VHUYLFHV FLWL]HQ LQIRUPDWLRQVHUYLFHV WLPHDQGDUHFRPPXQLFDWHGWRDOOFRQFHUQHG
SRUWDO 6WDWH ,QWUDQHW 3RUWDO GLVDVWHU UHFRYHU\
$FKLHYHPHQWV
UHPRWH PDQDJHPHQW DQG VHUYLFH LQWHJUDWLRQ HWF
6'&VDOVRSURYLGHEHWWHURSHUDWLRQ PDQDJHPHQW ‡ ,Q)<+LPDFKDO3UDGHVK -KDUNKDQG
FRQWURO ZLWK PLQLPL]HG RYHUDOO FRVW RI GDWD 6'&JRWRSHUDWLRQDO
P D Q D J H P H Q W   , 7  U H V R X U F H  P D Q D J H P H Q W  ‡ ,PSOHPHQWDWLRQRI6'&V 3XQMDE *RD LVLQ
GHSOR\PHQWDQGRWKHUFRVWVIRU6WDWHV87V SURJUHVV
7LOOQRZ6'&VDUHRSHUDWLRQDO7KHVHDUH7DPLO ‡ ,Q6WDWHV $VVDP 8WWDUDNKDQG ELGSURFHVV
1DGX3XGXFKHUU\:HVW%HQJDO$QGKUD3UDGHVK LVLQDGYDQFHVWDJH
0HJKDOD\D .DUQDWDND 0DQLSXU 2GLVKD 6LNNLP
‡ 3HUFHQWDJHRIUDFNVSDFHXWLOL]DWLRQLQ6WDWHV
+DU\DQD .HUDOD 0DKDUDVKWUD *XMDUDW 7ULSXUD
LVPRUHWKDQ
5DMDVWKDQ 1DJDODQG 8WWDU 3UDGHVK $QGDPDQ 
1LFREDU 0DGK\D 3UDGHVK /DNVKDGZHHS ‡  6WDWH 'DWD &HQWHUV  *XMDUDW 7ULSXUD :HVW
&KKDWWLVJDUK -DPPX  .DVKPLU 0L]RUDP %LKDU %HQJDO 5DMDVWKDQ 7DPLO 1DGX $QGKUD
+LPDFKDO3UDGHVK-KDUNKDQG 3UDGHVK2GLVKD.HUDOD FRPSOHWHG\HDUVRI
RSHUDWLRQGXULQJWKHÀQDQFLDO\HDU
,QRUGHUWRPDNH6'&V&ORXGHQDEOHG0HLW<KDV
FLUFXODWHGDWHPSODWH5HTXHVWIRU3URSRVDO 5)3 WR  *,&ORXG 0HJK5DM 
6WDWHV IRU LQLWLDWLQJ D ELG SURFHVV IRU &ORXG ,Q RUGHU WR UHDOL]H WKH 'LJLWDO ,QGLD YLVLRQ DQG WR
(QDEOHPHQWRI6'&V(OHYHQ6WDWHV 0DKDUDVKWUD XWLOL]H DQG KDUQHVV WKH EHQHÀWV RI &ORXG
+DU\DQD 0DGK\D 3UDGHVK &KKDWWLVJDUK &RPSXWLQJ *RYHUQPHQW RI ,QGLD KDV HPEDUNHG
5DMDVWKDQ :HVW %HQJDO.HUDOD 0HJKDOD\D 7DPLO


 $QQXDO5HSRUW

XSRQDQDPELWLRXVLQLWLDWLYH²´*,&ORXGµZKLFKKDV ‡ )OH[LELOLW\WRFDWHUWRWKHSHDNORDGDQGRIISHDN
EHHQ QDPHG DV ¶0HJK5DM· 0HJK5DM LQLWLDWLYH LV ORDGUHTXLUHPHQWV
LQWHQGHGWRGHOLYHU,&7VHUYLFHVRYHUFORXGWRDOOWKH
‡ &HQWUDO*,&ORXG´0HJK5DMµVHUYLFHVGLUHFWRU\
GHSDUWPHQWV PLQLVWULHV DW WKH &HQWUH DQG WKH
IRUSXEOLVKLQJVLQJOHLQVWDQFHVRIDSSOLFDWLRQV
6WDWHV87V 7KH YLVLRQ RI WKLV LQLWLDWLYH LV WR
RQFORXG
DFFHOHUDWHGHOLYHU\RIHVHUYLFHVLQWKHFRXQWU\ZKLOH
RSWLPL]LQJ,&7VSHQGLQJRIWKH*RYHUQPHQW$VSHU 0DMRUFRPSRQHQWVRI0HJK5DMLQFOXGH
WKH0HJK5DMSROLF\*RYHUQPHQWGHSDUWPHQWVDWWKH ‡ 6HWWLQJXSRI6WDWHDQG1DWLRQDO&ORXGV
&HQWUH DQG 6WDWHV WR ÀUVW HYDOXDWH WKH RSWLRQ RI
‡ 6HWXSDQH*RY$SSVWRUH
XVLQJ WKH *, &ORXG IRU LPSOHPHQWDWLRQ RI DOO QHZ
SURMHFWV IXQGHG E\ WKH JRYHUQPHQW ([LVWLQJ ‡ (PSDQHOPHQWRI&ORXG6HUYLFH3URYLGHUV
DSSOLFDWLRQVVHUYLFHVDQGSURMHFWVEHHYDOXDWHGWR ‡ (PSDQHOPHQWRI&ORXG$XGLWRUV
DVVHVV ZKHWKHU WKH\ VKRXOG PLJUDWH WR WKH *,
&ORXGµ ‡ 6HWWLQJXSRI&ORXG0DQDJHPHQW2IÀFH

7KH *, &ORXG ´0HJK5DMµ ZLOO SURYLGH VHUYLFHV WR ‡ 6HWWLQJXSDQHFRV\VWHPIRU&ORXGSUROLIHUDWLRQ

JRYHUQPHQWGHSDUWPHQWVFLWL]HQVDQGEXVLQHVVHV 3ROLFLHV *XLGHOLQHV WHPSODWHV VHFXULW\
WKURXJKLQWHUQHWDVZHOODVPRELOHFRQQHFWLYLW\,Q QRUPV FHUWLÀFDWLRQ EXVLQHVV PRGHOV IRU
DGGLWLRQWRDFFHOHUDWLQJWKHGHOLYHU\RIHVHUYLFHVWR DSSOLFDWLRQVWDULII UHYHQXHPRGHOVIRUSULYDWH
FLWL]HQVDQGEXVLQHVVHVWKHJRYHUQPHQW·VFORXG VHFWRU&ORXGVHUYLFHV
EDVHGVHUYLFHGHOLYHU\SODWIRUPZLOODOVRVXSSRUWD ‡ $ZDUHQHVVZRUNVKRSVWUDLQLQJSURJUDPVDQG
QXPEHU RI RWKHU REMHFWLYHV LQFOXGLQJ LQFUHDVHG PLJUDWLRQ VXSSRUW IRU FORXG DGRSWLRQ E\
VWDQGDUGL]DWLRQ LQWHURSHUDELOLW\ DQG LQWHJUDWLRQ D GHSDUWPHQWV
PRYH WRZDUGV DQ 23(; PRGHO WKH SRROLQJ RI
‡ 0HJK5DM *,&ORXG VHUYLFH'LUHFWRU\
VFDUFHXQGHUXWLOL]HGUHVRXUFHVDQGWKHVSUHDGRI
EHVW SUDFWLFHV ,W ZLOO DOVR VXSSRUW RQJRLQJ FRVW ‡ 6HWWLQJ XS RI  &ORXGV E\ RWKHU *RYHUQPHQW
HIIHFWLYHQHVVDQGPDQDJHDELOLW\ HQWLWLHV

6RPH RI WKH PDMRU EHQHÀWV RI *, &ORXG DUH $FKLHYHPHQWV 7KH ÀUVW 1DWLRQDO &ORXG
OLVWHGEHORZ LPSOHPHQWHG E\ 1,& ZDV ODXQFKHG RQ )HEUXDU\·
 ZKHUHLQ PRUH WKDQ  GHSDUWPHQWV DUH
‡ 'ULYHFRVWHIÀFLHQFLHVZLWKLQFUHDVHGXWLOL]DWLRQ
DOUHDG\ XVLQJ FORXG VHUYLFHV ZKLFK PD\ EH
RI,7,QIUDVWUXFWXUHWKURXJKFORXG
DFFHVVHGXVLQJWKHOLQNKWWSVFORXGJRYLQ7KH
‡ (QDEOHFRQYHUVLRQRI&$3(;WR23(;SDYLQJ ,QLWLDWLYHVXQGHU'LJLWDO,QGLD3URJUDPPHKRVWHGRQ
ZD\IRUFRQVXPSWLRQEDVHGELOOLQJ 1DWLRQDO&ORXGLQFOXGH
‡ )DVWHUSURFXUHPHQWRI,7,QIUDVWUXFWXUHVHUYLFHV ‡ 'LJLWDO,QGLD3RUWDO
‡ 5DSLGGHYHORSPHQWGHSOR\PHQWDQGUHXVHRI ‡ 'LJLWDO/RFNHU
,&7DSSOLFDWLRQV
‡ 'LJLWL]H,QGLD
‡ 2QGHPDQGVFDODELOLW\RILQIUDVWUXFWXUHWRPHHW
‡ 0DNHLQ,QGLD
ORQJWHUPFDSDFLW\UHTXLUHPHQWV


0LQLVWU\RI(OHFWURQLFV ,QIRUPDWLRQ7HFKQRORJ\ 0HLW<

‡ 6NLOO'HYHORSPHQW IDVWHULPSOHPHQWDWLRQRIWKHFORXGSROLF\
‡ 6PDUW&LWLHV  6HUYLFH'HOLYHU\*DWHZD\
‡ 2QOLQH5HJLVWUDWLRQ6\VWHP H+RVSLWDO 7KH6HUYLFH'HOLYHU\*DWHZD\LVDQLQLWLDWLYHRI0HLW<
WKDWKDVSURYLVLRQRIVLQJOHSRLQWDFFHVVIRUFLWL]HQV
‡ $DGKDDU EDVHG %LRPHWULF $WWHQGDQFH RI
DQG PLGGOHZDUH WR HQDEOH VKDULQJ RI LQIRUPDWLRQ
JRYHUQPHQWHPSOR\HHV
DFURVVGDWDEDVHVIRUHIÀFLHQWVHUYLFHGHOLYHU\7KLV
‡ -HHYDQ3UDPDDQVHUYLFHIRUSHQVLRQHUV LV D SDUW RI WKH YLVLRQ WR PDNH DOO *RYHUQPHQW
‡ 0\*RYODUJHVWFLWL]HQHQJDJHPHQWSODWIRUPRI VHUYLFHV DFFHVVLEOH WR WKH FRPPRQ PDQ LQ WKH
WKHJRYHUQPHQW ORFDOLW\ WKURXJK FRPPRQ VHUYLFH GHOLYHU\ RXWOHWV
DQGHQVXUHHIÀFLHQF\WUDQVSDUHQF\ UHOLDELOLW\RI
‡ 7KH H*RY $SSVWRUH XQGHU *, &ORXG ZDV
VXFKVHUYLFHVDWDIIRUGDEOHFRVWVWRUHDOL]HWKHEDVLF
ODXQFKHG LQ 0D\  7KH VDPH FDQ EH
QHHGV RI WKH FRPPRQ PDQµ 7KH *RYHUQPHQW
DFFHVVHGXVLQJWKHOLQNKWWSDSSVJRYLQ
VHUYLFHV DUH VHDPOHVVO\ LQWHJUDWHG DFURVV
‡ 0HLW< KDV SURYLVLRQDOO\ HPSDQHOOHG  &ORXG GHSDUWPHQWVRUMXULVGLFWLRQVWRSURYLGHHDV\DQGD
6HUYLFH 3URYLGHUV IRU D YDULHW\ RI &ORXG VLQJOHZLQGRZDFFHVVWRDOOFLWL]HQV,WZLOOUHGXFH
GHSOR\PHQW PRGHOV 3XEOLF &ORXG 9LUWXDO WKHWLPHDQGHIIRUWVLQYROYHGLQYDULRXVDSSURYDOV
3ULYDWH &ORXG DQG *RYHUQPHQW &RPPXQLW\ FOHDUDQFHV HWF ,Q RUGHU WR PHHW WKH REMHFWLYH RI
&ORXG DQG&ORXG6HUYLFHRIIHULQJV ,DD63DD6 VHDPOHVV LQWHJUDWLRQ DFURVV WKH GHSDUWPHQWV
9'DD6 '5DD6 'HY2SV DV D 6HUYLFH  7KH DUFKLWHFWXUHRIWKHDSSOLFDWLRQVKRXOGEHGHVLJQHG
SURYLVLRQDOO\ HPSDQHOOHG &63V DUH 0LFURVRIW LQDZD\WKDWLQWHUIDFHVZLWKRWKHUV\VWHPVPD\EH
&RUSRUDWLRQ ,QGLD  3ULYDWH /LPLWHG +HZOHWW EXLOWZKHQHYHUUHTXLUHG
3DFNDUG (QWHUSULVH ,QGLD 3ULYDWH /LPLWHG ,%0
7KH 6WDWH 3RUWDO 66'* DQG ()RUPV LQLWLDWLYH
,QGLD 3ULYDWH /LPLWHG 7DWD &RPPXQLFDWLRQV
IDFLOLWDWHV(OHFWURQLF6HUYLFH'HOLYHU\E\SURYLGLQJ
/LPLWHG%KDUDW6DQFKDU1LJDP/LPLWHG %61/ 
VLJQLÀFDQWEHQHÀWVWRWKHFLWL]HQVHVSHFLDOO\LQWKH
(6'6 6RIWZDUH 6ROXWLRQV 3ULYDWH /LPLWHG 1HW
IRUPRIDVLQJOHJDWHZD\WRVHUYLFHGHOLYHU\7KXV
0DJLF ,7 6HUYLFHV 3ULYDWH /LPLWHG 6LI\
KROLVWLF DQG KDUPRQLRXV XVH RI WKH &RPPRQ
7HFKQRORJLHV /LPLWHG &WUO6 'DWD &HQWHUV
6HUYLFH &HQWHUV &6&V  DORQJ ZLWK WKH FRPPRQ
/LPLWHG&\IXWXUH,QGLD3ULYDWH/LPLWHGDQG:HE
LQIUDVWUXFWXUH 6:$16'& DQGWHFKQRORJ\DFURVV
:HUNV,QGLD3ULYDWH/LPLWHG7KHFRQWDFWGHWDLOV
WKH6WDWHV87VIRUDOODSSOLFDWLRQDQGVHUYLFHVVKDOO
RIWKHHPSDQHOOHG&63VFDQEHDFFHVVHGXVLQJ
EHDFKLHYHG
W K H  O L Q N  K W W S    P H L W \ J R Y L Q  F R Q W H Q W  J L 
FORXGBPHJKUDM 7KLVSURMHFWLQWHQGVWRSURYLGHHDV\DQ\ZKHUHDQG
DQ\WLPH DFFHVV WR JRYHUQPHQW VHUYLFHV ERWK
$FWLYLWLHVLQSURJUHVV
LQIRUPDWLRQDO WUDQVDFWLRQDO DQGWKHLUE\UHGXFLQJ
‡ )LQDOL]LQJ $XGLW FULWHULD GRFXPHQWV DQG WKH QXPEHU RI YLVLWV RI FLWL]HQV WR D JRYHUQPHQW
HPSDQHOOLQJ &ORXG $XGLWRUV IRU HPSDQHOOHG RIÀFHGHSDUWPHQWIRUDYDLOLQJWKHVHUYLFHV,WDOVR
&63V DLPVWRUHGXFHDGPLQLVWUDWLYHEXUGHQDQGVHUYLFH
‡ 6HWWLQJXSRI&02 &ORXG0DQDJHPHQW2IÀFH  IXOÀOOPHQW WLPH DQG FRVWV IRU WKH JRYHUQPHQW
WRIDFLOLWDWHDQHFRV\VWHPIRU*,&ORXGOHDGLQJWR FLWL]HQV DQG EXVLQHVVHV DQG FUHDWLQJ D PRUH


 $QQXDO5HSRUW

HIÀFLHQW FRPPXQLFDWLRQ DQG VHUYLFH GHOLYHU\ ‡ 6KDUHG 6HUYLFHV +XE IRU 'HSDUWPHQWDO
V\VWHPWKURXJKDQLQWHJUDWHGVWDWHSRUWDO $SSOLFDWLRQ ² 3D\PHQW *DWHZD\ 6HUYLFHV
0RELOH *DWHZD\ 6HUYLFHV $XWKHQWLFDWLRQ
*XLGHOLQHV KDYH EHHQ IRUPXODWHG WR SURYLGH
VHUYLFHV YLD8,' 
WHFKQLFDODQGÀQDQFLDODVVLVWDQFHWRWKH6WDWHV87V
IRUVHWWLQJXS6WDWH3RUWDOV66'*VDQGHOHFWURQLF $FKLHYHPHQWV
IRUPV,QRUGHUWRIDFLOLWDWHWKHTXLFNLPSOHPHQWDWLRQ
‡ 6HUYLFHVZHUHUHJLVWHUHGLQWKHSURGXFWLRQ
DQGUROORXWRIWKHSURMHFW0HLW<KDVHPSDQHOOHG
HQYLURQPHQWRIH6DQJDP
FRQVXOWDQWV ZKR ZLOO DVVLVW WKH VWDWHV87V LQ
SUHSDUDWLRQRIWKHSURSRVDOVDQGLQWKHELGGLQJDQG ‡ ,QIUDVWUXFWXUH HQKDQFHPHQW '& DQG '5  RI
VHOHFWLRQSURFHVVRILPSOHPHQWLQJDJHQFLHV0HLW< H6DQJDP,QIUDVWUXFWXUH
KDV DOVR HPSDQHOOHG  LPSOHPHQWLQJ DJHQFLHV ‡ )XQFWLRQDOLW\ HQKDQFHPHQW RI H6DQJDP
ZKLFK FDQ ELG IRU WKH VWDWH SURMHFWV '35V DQG 3URGXFW FRPSOHWHG LQ 6WDJLQJ   HQYLURQPHQW
IXQGLQJKDYHEHHQDSSURYHGIRU6WDWHV87VLQ 6HFXULW\ DQG 3HUIRUPDQFH WHVWLQJ XQGHU
WKHFRXQWU\2XWRIWKHVHVWDWHV87V6WDWHV87V SURJUHVV
KDYH DOUHDG\ ÁRDWHG 5)3V IRU VHOHFWLRQ RI WKH
 1DWLRQDO.QRZOHGJH1HWZRUN 1.1 
LPSOHPHQWLQJDJHQF\ ,$ IRUWKHSURMHFW
,Q 0DUFK  WKH &DELQHW &RPPLWWHH RQ
$FKLHYHPHQWV
,QIUDVWUXFWXUH &&, DSSURYHGWKHHVWDEOLVKPHQWRI
‡ $W SUHVHQW  VWDWHV87V KDYH JRQH OLYH ZLWK WKH 1DWLRQDO .QRZOHGJH 1HWZRUN 1.1  WR EH
VHUYLFHVDQGWUDQVDFWLRQVKDYH LPSOHPHQWHGE\1,&RYHUDSHULRGRI\HDUV7KH
EHHQUHSRUWHGDVRQ 2EMHFWLYH RI 1.1 KDV EHHQ WR LQWHUFRQQHFW DOO
‡  6WDWHV87V *XMDUDW 'DPDQ 'LX DQG NQRZOHGJHLQVWLWXWLRQVDFURVVWKHFRXQWU\WKURXJK
-KDUNKDQG  KDYH FRPSOHWHG LPSOHPHQWDWLRQ KLJK VSHHG GDWD FRPPXQLFDWLRQ QHWZRUN WR
DQGZDLWLQJIRU*R/LYH HQFRXUDJHVKDULQJRIUHVRXUFHVDQGFROODERUDWLYH
UHVHDUFK ,W ZDV HQYLVDJHG WR FRYHU DERXW 
‡ 6WDWHV87VDUHLQSURFHVVRI,$VHOHFWLRQ
LQVWLWXWLRQV FRPSULVLQJ RI DOO 8QLYHUVLWLHV
H6DQJDP 16'*  LV D PLGGOHZDUH LQIUDVWUXFWXUH ,QVWLWXWLRQVRI+LJKHU/HDUQLQJDQG5HVHDUFK
DFWLQJDVDVWDQGDUGVEDVHGURXWLQJDQGPHVVDJH
1.1ZLWKLWVPXOWLJLJDELWFDSDELOLW\DLPVWRFRQQHFW
VZLWFK ZKLFK SURYLGHV VHDPOHVV LQWHURSHUDELOLW\
DOO XQLYHUVLWLHV UHVHDUFK LQVWLWXWLRQV OLEUDULHV
DQG H[FKDQJH RI GDWD DFURVV KHWHURJHQHRXV
ODERUDWRULHVKHDOWKFDUHDQGDJULFXOWXUDOLQVWLWXWLRQV
DSSOLFDWLRQV RI JHRJUDSKLFDOO\ GLVSHUVHG
DFURVVWKHFRXQWU\DQGKDVFRQQHFWHGVXFK
GHSDUWPHQWV7KH16'*LVEHLQJLPSOHPHQWHGE\
LQVWLWXWLRQV LQFOXGLQJ OLQNV PLJUDWHG WR 1.1 IURP
&'$&DQGLVOLYHVLQFH$XJXVW,WIDFLOLWDWHVWKH
1DWLRQDO0LVVLRQIRU(GXFDWLRQWKURXJK,QIRUPDWLRQ
IROORZLQJ
DQG &RPPXQLFDWLRQV 7HFKQRORJ\ 10(,&7   %\
‡ ,QWHURSHUDELOLW\EHWZHHQYDULRXVH*RYHUQDQFH IDFLOLWDWLQJWKHÁRZRILQIRUPDWLRQDQGNQRZOHGJH
DSSOLFDWLRQV 1.1DGGUHVVHVFULWLFDOLVVXHRIDFFHVVDQGFUHDWHV
D QHZ SDUDGLJP RI FROODERUDWLRQ WR HQULFK WKH
‡ 6HFXUH 0HVVDJLQJ EHWZHHQ JRYHUQPHQWDO
UHVHDUFK HIIRUWV LQ WKH FRXQWU\ 7KLV KDV EURXJKW
DSSOLFDWLRQV
DERXW D NQRZOHGJH UHYROXWLRQ WKDW KDV EHHQ


0LQLVWU\RI(OHFWURQLFV ,QIRUPDWLRQ7HFKQRORJ\ 0HLW<

LQVWUXPHQWDOLQWUDQVIRUPLQJVRFLHW\DQGSURPRWLQJ (FRQRPLF &RRSHUDWLRQ 6$6(&  ÀEHU RU E\

LQFOXVLYHJURZWK SURFXULQJ EDQGZLGWK RI *ESV LL  6ULODQND DQG
0DOGLYHV E\ VXEPDULQH RSWLFDO OLQNV LLL 
7KHVDOLHQWIHDWXUHVRIWKH1.1DUH
$IJKDQLVWDQE\VDWHOOLWHOLQNRUWKURXJK7(,1QHWZRUN
D  (VWDEOLVKLQJ DQ 8OWUDKLJKVSHHG QDWLRQDO 7(,1  7KH WRWDO HVWLPDWHG H[SHQGLWXUH IRU ÀYH
LQIRUPDWLRQQHWZRUNIRUWKHFRXQWU\ \HDUVLV5VFU 0($KDVLQIRUPHGWKDW%KXWDQ
E  &RQQHFWLQJ DOO PDMRU NQRZOHGJH LQVWLWXWLRQV 6ULODQND DQG $IJKDQLVWDQ KDYH H[SUHVVHG WKH
8QLYHUVLWLHV  5HVHDUFK ,QVWLWXWLRQV  IRU LQWHUHVWIRU1.1FRQQHFWLYLW\DQGWDONVDUHLQÀQDO
NQRZOHGJHFUHDWLRQFROODWLRQDQGGLVVHPLQDWLRQ VWDJHV  5HVSRQVH IURP %DQJODGHVK 1HSDO DQG
RILQIRUPDWLRQ 0DOGLYHVLVDZDLWHG1,&1.1KDVDOVRSURSRVHGWR
LQLWLDWHDWHQGHULQJSURFHVVIRUFRXQWULHV %KXWDQ
F  &RQQHFWLQJWKH,QGLDQNQRZOHGJHLQVWLWXWLRQVWR
6UL /DQND %DQJODGHVK 1HSDO 0DOGLYHV DQG
WKH ,QWHUQDWLRQDO NQRZOHGJH FRPPXQLW\ IRU
$IJKDQLVWDQ IRUSULFHGLVFRYHU\
NQRZOHGJHVKDULQJ
1.1 LQ WKH FXUUHQW VFHQDULR IDFLOLWDWHV FUHDWLRQ
G  (QDEOLQJ VHFWRUDO YLUWXDO QHWZRUNV LQ YDULRXV
DFTXLVLWLRQ DQG VKDULQJ RI NQRZOHGJH UHVRXUFHV
DSSOLFDWLRQDUHDV $JULFXOWXUH+HDOWK(GXFDWLRQ
DPRQJ WKH ODUJH SDUWLFLSDWLQJ LQVWLWXWLRQV
(JRYHUQDQFHDQG*ULG&RPSXWLQJ 
FROODERUDWLYH UHVHDUFK FRXQWU\ZLGH FODVVURRPV
H  6HWWLQJXSDSODWIRUPIRUGHYHORSPHQWRIQHZ &:&5  HWF DQG KHOS WKH FRXQWU\ WR HYROYH DV
SURFHVVHV DQG WHFKQRORJLHV EDVHG RQ KLJK .QRZOHGJH6RFLHW\
EDQGZLGWKDQGORZODWHQF\QHWZRUNV
&XUUHQW6WDWXV DVRQVW-DQXDU\ 
I  (QDEOLQJ D WHVWEHG IRU QHWZRUN DQG VHFXULQJ
‡  OLQNV WR LQVWLWXWLRQV FRPPLVVLRQHG DQG
WHFKQRORJ\GHYHORSPHQW
PDGHRSHUDWLRQDO
J  /LQNWR*OREDO1HWZRUNVWRFROODERUDWHZLWKWKH
‡ 7KLV LQFOXGHV  OLQNV WR LQVWLWXWLRQV XQGHU
UHVHDUFKFRPPXQLWLHVDFURVVWKHJOREH
1DWLRQDO 0LVVLRQ RQ (GXFDWLRQ WKURXJK
$OVRDWWKHWK6$$5&VXPPLWLQ1RYHPEHU ,QIRUPDWLRQ DQG &RPPXQLFDWLRQV 7HFKQRORJ\
WKH+RQ·EOH3ULPH0LQLVWHURI,QGLDVKDUHGKLVYLVLRQ ZKLFKPLJUDWHGWR1.1
IRUPDNLQJWKH6RXWK$VLDQUHJLRQPRUHFRQQHFWHG
‡ 1.1OLQNVKDYHEHHQXSJUDGHGWR*EDVHG
DQG PRUH SURVSHURXV 7KLV ZRXOG HQWDLO 1.1
RQWKHLUXVDJHLH7,)5,,75RRUNHH,,7'HOKL,,7
FRQQHFWLYLW\ ZLWK 1DWLRQDO 5HVHDUFK  (GXFDWLRQ
.KDUDJSXU'HOKL8QLY%DQDUDV+LQGX8QLY,,7
1HWZRUNV 15(1V  RI 1HSDO %KXWDQ 6UL /DQND
%RPED\ *XMDUDW'DWD&HQWUH
%DQJODGHVK$IJKDQLVWDQDQG0DOGLYHVLQWKHQHDU
IXWXUH ‡ 1.1FRQQHFWLYLW\H[WHQGHGWR1,&GLVWULFW
FHQWHUV
$IWHUGHWDLOHGFRQVXOWDWLRQVZLWKDOOVWDNHKROGHUVWKH
ÀQDOFRQFHSWQRWHRQ´([WHQGLQJ1.1WR6$$5& ‡ 9LUWXDO&ODVVURRPVKDYHEHHQVHWXS
&RXQWULHVµZDVIRUZDUGHGWR0($RQ ‡ QRVRI&RUH/LQNVKDYHEHHQFRPPLVVLRQHG
7KH0RGHRIFRQQHFWLYLW\SURSRVHGLQWKHFRQFHSW DQGPDGHRSHUDWLRQDO
1RWH DUH DV IROORZV L  1HSDO %KXWDQ DQG
‡ 1.1 FRQQHFWLYLW\ H[WHQGHG WR 6:$1 LQ 
%DQJODGHVK E\ XVLQJ 6RXWK $VLD 6XEUHJLRQDO


 $QQXDO5HSRUW

6WDWHV87VDQG6'&LQ6WDWHV87V  1DWLRQDO,QIRUPDWLRQ,QIUDVWUXFWXUH 1,, 

‡ 1.1ORFDWLRQVLH3RLQWRI3UHVHQFH 3R3V  $SLORWSURMHFWRQ1,,FRYHULQJRQHGLVWULFWHDFKLQ
DUHQRZ,62FHUWLÀHG 6WDWHV DQG  87V KDV EHHQ DSSURYHG DW D WRWDO
RXWOD\RI5V&U7KH6WDWHV87VFRYHUHGXQGHU
‡ 1.1 6HUYLFHV VXFK DV %DQGZLGWK 7HVWLQJ
WKH SLORW DUH .DUQDWDND 0\VRUH GLVWULFW  .HUDOD
6HUYLFH26,5 2SHQ6RXUFH,35HJLVWUDU '16
7ULYDQGUXP  *XMDUDW $QDQG  8WWDUDNKDQG
'RPDLQ1DPH6HUYHU  1.12QHKDYHEHHQ
+DULGZDU  1DJDODQG 3DUHQ  DQG 87V RI
ODXQFKHGDQGPRUHWKDQKXQGUHGLQVWLWXWHVDUH
&KDQGLJDUKDQG3XGXFKHUU\
RQERDUG DQG %LW$PEXODWRU LV XSGDWHG ZLWK
'UDJ 'URSDORQJZLWKYDULRXVRWKHULQWHUDFWLYH ,WLVSURSRVHGWRLQWHJUDWHWKHH[LVWLQJQHWZRUNVDQG
IHDWXUHVZKLOHWHVWLQJRIYHUVLRQRI1.12QHLV LQIUDVWUXFWXUHRI6:$11.16'&1'&1,&1(7
XQGHUZD\ DQG12)1DQGOHYHUDJHLWWRHQKDQFHLWVSRWHQWLDO
DQG XWLOLW\ DQG WKHUHE\ HQVXUH HFRQRP\ LQ
‡ 3 U H V L G H Q W  D Q G  3 U L P H  0 L Q L V W H U V  Y L G H R
H[SHQGLWXUH ,W ZLOO IDFLOLWDWH WR LGHQWLI\ WKH
FRQIHUHQFLQJ 9&  DUH EHLQJ UHJXODUO\
FKDOOHQJHV DQG DGGUHVV WKHP HIIHFWLYHO\ ZKLOH
FRQGXFWHG RYHU 1.1 )XUWKHU DSSUR[LPDWHO\
SURYLGLQJ YDULRXV H*RYHUQDQFH VHUYLFHV XSWR
 KRXUV RI 9&V KDYH EHHQ FRQGXFWHG
*UDP3DQFKD\DWOHYHO7KHSLORWLVIXOO\IXQGHGE\
RYHU1.1WLOOQRZLQWKHFDOHQGDU\HDU
0HLW< IRU H[SHQGLWXUH WRZDUGV &$3(; 23(; 
‡ 7KH )RXUWK 1.1 $QQXDO :RUNVKRS ZDV %DQGZLGWKFKDUJHVIRUDSHULRGRIRQH\HDU
RUJDQL]HGDW-178+\GHUDEDGRQVW QG
7KHSURMHFWLQSDUHQGLVWULFWRI1DJDODQGKDVEHHQ
-DQXDU\MRLQWO\E\WKH1DWLRQDO,QIRUPDWLFV
LPSOHPHQWHG DQG KDV UHFHQWO\ FRPPHQFHG
&HQWUH 1,&  DQG -DZDKDUODO 1HKUX 7HFKQLFDO
RSHUDWLRQV ZKHUHDV LW LV LQ DGYDQFHG VWDJH RI
8QLYHUVLW\ -178 +\GHUDEDG7KHWKHPHRIWKLV
LPSOHPHQWDWLRQLQUHPDLQLQJ6WDWHV87V
\HDU·VZRUNVKRSZDV´1.1DWWKH&RUHRI&\EHU
6SDFHµ 7KH ZRUNVKRS ZDV DWWHQGHG E\ RYHU  0RELOH6HYD3ODWIRUP 063 
GHOHJDWHVLQFOXGLQJKLJKOHYHOJRYHUQPHQW
0HLW<KDVLQLWLDWHGDPDVVLYHFRXQWU\ZLGHLQLWLDWLYH
RIÀFLDOV
RQ PRELOH JRYHUQDQFH WR SURYLGH JRYHUQPHQW
‡ 1.1KDVFRPPLVVLRQHGLWVLQWHUQDWLRQDO3R3·V VHUYLFHVWRWKHSHRSOHWKURXJKPRELOHSKRQHVDQG
DW$PVWHUGDPDQG6LQJDSRUHZLWK[*OLQNV WDEOHWV$VDSDUWRIWKLVLQLWLDWLYHWKH)UDPHZRUNIRU
H D F K  L Q         7 K H  O L Q N V  K D Y H  E H H Q 0RELOH*RYHUQDQFHZDVQRWLÀHGLQ)HEUXDU\
RSHUDWLRQDOL]HG EHWZHHQ 1.1 0XPEDL1.1 0RELOH6HYDKDVEHHQGHYHORSHGE\0HLW<DVWKH
$PVWHUGDPDQG1.1&KHQQDL1.16LQJDSRUH FRUHLQIUDVWUXFWXUHIRUDOO*RYHUQPHQWGHSDUWPHQWV
UHVSHFWLYHO\ DQG DJHQFLHV LQ WKH FRXQWU\ IRU HQDEOLQJ WKH
DYDLODELOLW\ RI SXEOLF VHUYLFHV WKURXJK PRELOH
‡ ,QWHUQDWLRQDO 1.1 3R3V DW  *HQHYD DQG 1HZ
GHYLFHV0RELOH6HYDHQDEOHVWKHLQWHJUDWLRQRIWKH
<RUN DUH OLNHO\ WR EH FRPPLVVLRQHG LQ 
PRELOH SODWIRUP ZLWK WKH FRPPRQ H*RYHUQDQFH
H[WHQGLQJ1.1·VUHDFKIDUWKHULQWKHUHVHDUFK
LQIUDVWUXFWXUH FRQVLVWLQJ RI 6'&V 6:$1V DQG
DQGFROODERUDWLRQVSDFH
66'*16'*,WHQDEOHVD*RYHUQPHQWGHSDUWPHQW
WRLQWHJUDWHERWKZHEDQGPRELOHEDVHGVHUYLFHV
VHDPOHVVO\DQGHQKDQFHVWKHDFFHVVWRHOHFWURQLF


0LQLVWU\RI(OHFWURQLFV ,QIRUPDWLRQ7HFKQRORJ\ 0HLW<

VHUYLFHV WUHPHQGRXVO\ GXH WR WKH YHU\ KLJK ‡ &DSDFLW\ %XLOGLQJ IRU LPSOHPHQWDWLRQ RI
SHQHWUDWLRQ RI PRELOH SKRQHV HVSHFLDOO\ LQ UXUDO P*RYHUQDQFH 5ROORXWRIVHUYLFHV
DUHDV ,W SURYLGHV DOO SRVVLEOH PRELOH EDVHG
‡ 7HDP 9LVLW WR 7DQ]DQLD   'D\V  .QRZOHGJH
FKDQQHOV IRU GHOLYHULQJ VHUYLFHV VXFK DV 606
6KDULQJZLWK*RYWRI7DQ]DQLDIURP2FW
866' ,956 DQG PRELOH DSSOLFDWLRQV P$SSV 
DW'DUHV6DODDP
$ Y D L O D E L O L W \  R I  J R Y H U Q P H Q W  Z L G H  V K D U H G
L Q I U D V W U X F W X U H  D Q G  V H U Y L F H V  H Q D E O H  U D S L G ‡ 2QH GD\ 7UDLQLQJ IRU DYDLOLQJ 0RELOH 6HYD
G H Y H O R S P H Q W  D Q G  U H G X F H G  F R V W V  I R U  W K H VHUYLFHVRQWK-XQHDW0XPEDL
GHSDUWPHQWVLQUROOLQJRXWHOHFWURQLFVHUYLFHV7KH ‡ 0RELOH $SSOLFDWLRQ 'HYHORSPHQW WUDLQLQJ WR
QDWLRQDO UROORXW RI 0RELOH 6HYD SURMHFW ZDV GHOHJDWLRQIURP(&%%KXWDQ$SULO
DSSURYHGLQ1RYHPEHU 'HOKL
$FKLHYHPHQWV 7R VWUHQJWKHQ 0HLW<·V PLVVLRQ WR PHQDEOH
‡ DGGLWLRQDO*RYHUQPHQWGHSDUWPHQWVDQG JRYHUQPHQWGHSDUWPHQWVDQGDJHQFLHVDFURVVWKH
DJHQFLHVLQWHJUDWHGZLWK063 QDWLRQ DQRWKHU SURMHFW ²´P(QDEOHPHQW RI
*RYHUQPHQW 'HSDUWPHQWV WKURXJK 0RELOH 6HYDµ
‡ 1RRISXVK606WUDQVDFWLRQVFURUHV
ZDVDSSURYHGLQ-XQHIRUPRQWKV
‡ 7RWDOQXPEHURIVHUYLFHVDYDLODEOHWRFLWL]HQV 
*HRJUDSKLFDO,QIRUPDWLRQ6\VWHP *,6 
EXVLQHVVHVKDVUHDFKHG
8QGHUWKH8SVFDOLQJRIPXOWLOD\HUHG*,6SURMHFW
‡ 2Q 0RELOH6HYD$SS6WRUH OLYHPDSSV
56 *,6'LYLVLRQ1,&KDVGHYHORSHGYROXPLQRXV
KDYHEHHQGHYHORSHGDQGKRVWHG
JHRVSDWLDO UHSRVLWRU\ RI KHWHURJHQHRXV GDWDVHWV
‡ 7KHDSSVKDYHEHHQGRZQORDGHGRYHUODNK IURP62,,652)6,DQGYDULRXVRWKHUJRYHUQPHQW
WLPHV DJHQFLHV DORQJ ZLWK LQKRXVH GDWD GHYHORSPHQW
HIIRUWV RQ :*6 GDWXP ZLWK FRPSOLDQFH WR
‡ ,956 6HUYLFHV  ODNK WUDQVDFWLRQV 866'
1DWLRQDO 0DS 3ROLF\ DV ZHOO DV JOREDO VWDQGDUGV
6HUYLFHODNKWUDQVDFWLRQV
1,&0$361,& *,6 SODWIRUP ZDV VXFFHVVIXO LQ
‡ 'HYHORSHG  1RV 0RELOH DSSOLFDWLRQ $JUL HVWDEOLVKLQJFRPPRQSODWIRUPIRUDOOWKHPLQLVWULHV
PDNHW &URS,QVXUDQFH .LVDQ 6XYLGKD WR KDUPRQL]H GDWD DQG RYHUOD\ WKHLU LQIRUPDWLRQ
3XVD.ULVKLODXQFKHGE\30 ERWK LQ VSDWLDO DQG QRQVSDWLDO IRUPDWV IRU ZHE
‡ 0RELOH6HYDJRW$ZDUGRI$SSUHFLDWLRQ 5XQQHU EDVHGDFFHVV6RPHRIWKHVDOLHQWIHDWXUHVRIWKLV
XS LQ&6,1LKLOHQWH*RYHUQDQFH$ZDUGV 1,&0$36 ² *,6 SODWIRUP HVWDEOLVKHG E\ 1,&
LQFOXGH DUH EDVH PDS VHUYLFH FRQVLVWLQJ RI SUH
‡ 0RELOH6HYDDUH)LQDOLVWLQ([SUHVV,7$ZDUGV
FRPSRVHG PDSV ZLWK VFDOHV UDQJLQJ IURP  
 ÀQDOUHVXOWQRWGHFODUHG
0LOOLRQWR1,&VDWHOOLWHLPDJHU\VHUYLFHXVLQJ
‡ 0RELOH 6HYD DUH ÀQDOLVWV LQ 0RELOH IRU *RRG ,56 VDWHOOLWH LPDJHV RI YDU\LQJ UHVROXWLRQV OLNH
 E\ 9RGDIRQH )RXQGDWLRQ DQG 1DVVFRP $:L)6 P /,66,,, P DQG3$1 P 
)RXQGDWLRQ DQG&DUWRVDW P DQG7HUUDLQ%DVH0DSVHUYLFH
‡ &RQVXOWDWLRQ :RUNVKRS IRU ÀQDOL]LQJ RXU IHDWXUHVVKDGHGUHOLHILPDJHU\WRSURYLGHDQHXWUDO
EXVLQHVVPRGHORQ1RYDW0HLW< EDFNJURXQGIRURWKHUGDWDOD\HUV


 $QQXDO5HSRUW

8WLOLW\0DSSLQJ'LYLVLRQ1,&KDVGHYHORSHGODUJH SUHVHQWO\ EHLQJ LPSOHPHQWHG E\ 'HSDUWPHQW RI

6FDOH . ' 'LJLWDO EDVHPDS RI VHYHQ PHWUR 7HOHFRPPXQLFDWLRQV :LWK WKH DYDLODELOLW\ RI KLJK
FLWLHVDQGKRVWHGLQWKH&ORXGWRDFFHVVYLDVHFXUHG VSHHG EURDGEDQG FRQQHFWLYLW\ XSWR *UDP
**HQYLURQPHQW 3DQFKD\DWVLWZRXOGEHHDVLHUIRUWKHFHQWUDODQG
VWDWHJRYHUQPHQWVWRGHOLYHUYDULRXV*%**DQG
%KDUDW0DSV1,&0HLW<KDVFUHDWHG0XOWL/D\HU
*& VHUYLFHV WR WKH FLWL]HQV DFURVV WKH FRXQW\
*,63ODWIRUPQDPHG%KDUDW0DSVZKLFKGHSLFWV
&XUUHQWO\  NPV RI 2SWLFDO ÀEHU FDEOH KDV
FRUHIRXQGDWLRQGDWDDV1,&0$36DQLQWHJUDWHG
EHHQODLGUHDFKLQJ*UDP3DQFKD\DWV
EDVHPDSVHUYLFHXVLQJVFDOHUHIHUHQFH
GDWDIURP6XUYH\RI,QGLD,652)6,5*,DQGVRRQ %HVLGHV DYDLODELOLW\ RI UREXVW FRQQHFWLYLW\ LQ WXUQ
7KLVHQFRPSDVVOD\HUVFRQWDLQLQJDGPLQLVWUDWLYH ZRXOG PDNH LW IHDVLEOH WR SODQ DQG GHOLYHU RWKHU
ERXQGDULHV WUDQVSRUW OD\HUV VXFK DV URDGV  VRFLDOVHFWRUVHUYLFHVOLNHH+HDOWKH(GXFDWLRQH
UDLOZD\V IRUHVW OD\HU VHWWOHPHQW ORFDWLRQV HWF $JULFXOWXUH 6NLOO GHYHORSPHQW DQG DOVR ÀQDQFLDO
LQFOXGLQJWHUUDLQPDSVHUYLFHV LQFOXVLRQ,WLVHQYLVDJHGWKDWLWZRXOGEHSRVVLEOHLQ
WKHQHDUIXWXUHXQGHUWKH'LJLWDO,QGLD3URJUDPPHWR
*,6,QWHJUDWLRQRI'HSDUWPHQWRI3RVW$ZHEEDVHG
KDYH LQWHU DQG LQWUD VWDWH VRFLR HFRQRPLF
DSSOLFDWLRQ IRU 'HSDUWPHQW RI 3RVW LV GHYHORSHG
GHYHORSPHQWLQWKHFRXQWU\
DQG DXGLWHG LQ 1,& KWWSSRVWRIÀFHXPGQLF
LQQLFXWLOLW\ SRUWDO LV KRVWLQJ WKH DSSOLFDWLRQ  3XEOLF ,QWHUQHW $FFHVV 3URJUDPPH
DORQJZLWKWKH.VFDOHPDS8VHUFDQORFDWHRI LQFOXGLQJ:L)LLQ8QLYHUVLWLHV 
3LQ &RGH ERXQGDULHV 3RVW RIÀFHV OHWWHU ER[HV
:L)LLQ8QLYHUVLWLHV
%HDWERXQGDULHV%HDWURXWHVLQVL[FLWLHVLQYDULRXV
PHWKRGV 2QHRIWKH(DUO\+DUYHVW3URJUDPPHVXQGHU'LJLWDO
,QGLD LV 6HWWLQJ XS :L)L LQ 8QLYHUVLWLHV 0HLW< LV
*,6 ,QWHJUDWLRQ RI 6OXP &OXVWHU DQG 6FKHPHV IRU
SURYLGLQJPRGHO:L)LHQDEOHGFDPSXVQHWZRUNVDW
6/80 5HKDELOLWDWLRQ $XWKRULW\ 65$  0XPEDL 
ÀYH XQLYHUVLWLHV QDPHO\ 8QLYHUVLW\ RI $OODKDEDG
$SSUR[6OXP&OXVWHUDQG6OXP6FKHPHV
8QLYHUVLW\RI3XQH2VPDQLD8QLYHUVLW\+\GHUDEDG
IRU65$DORQJZLWKIDFWVKHHWLQIRUPDWLRQQDPHRI
8WNDO 8QLYHUVLW\ %KXEDQHVZDU DQG 1RUWK (DVWHUQ
WKHVRFLHW\FLW\VXUYH\QXPEHUQDPHRIWKHEXLOGHU
+LOO 8QLYHUVLW\ 1(+8  6KLOORQJ 7KH PRGHO LV
VWDWXV RI WKH VFKHPH HWF ZLOO GLJLWLVHG DV
UHSOLFDEOH DQG FDQ EH UHSOLFDWHG DW RWKHU KLJKHU
FRPSRQHQWVRI65$VDVVHWVGDWD7KLVZLOOLQWHJUDWH
OHDUQLQJ LQVWLWXWLRQVXQLYHUVLWLHVKRVSLWDOV DFURVV
6560,6 GDWD RQ EDVHPDS RI 0XPEDL *,6 LV
,QGLD 7KLV ZRXOG HQDEOH RQ FDPSXV VWXGHQWV
LQFOXGHGLQWKHGDLO\URXWLQHRIWKH65$ZRUN
IDFXOW\ WHDFKHUV YLVLWRUV JXHVWV WR KDYH HQWU\ WR
0RELOH$SSIRU'%7GHYHORSHGD*,6EDVHG0RELOH F\EHUZRUOGZLWK:L)LGHYLFHVWRDFFHVVUHWULHYH
$SS IRU '%7 VKRZLQJ /RFDWLRQV DQG GHWDLOV RI DQGSRVWLQIRUPDWLRQRQDQ\WLPHDQ\ZKHUHEDVLV
%DQNV $70V SRVW RIÀFHV %DQN 0LWUD DQG
(51(7 ,QGLD LV GHSOR\LQJ :L)L LQ WKHVH ÀYH
&RPPXQLW\VHUYLFHV
XQLYHUVLWLHV 7KH :L)L FRQQHFWLYLW\ DW $OODKDEDG
 +LJK 6SHHG %URDGEDQG &RQQHFWLYLW\ 8QLYHUVLW\LVRSHUDWLRQDOVLQFHDQGPRUH
+LJK VSHHG EURDGEDQG FRQQHFWLYLW\ ZRXOG EH WKDQ  XVHUV DFFRXQWV IRU :L)L DFFHVV KDYH
PDGHDYDLODEOHXSWRDOOODNK*UDP3DQFKD\DWV EHHQ FUHDWHG 7RWDO  :LUHOHVV $FFHVV 3RLQWV
LQWKHFRXQWU\XQGHU12)1%KDUDW1HWSURJUDPPH KDYH EHHQ LQVWDOOHG LQ YDULRXV EXLOGLQJV


0LQLVWU\RI(OHFWURQLFV ,QIRUPDWLRQ7HFKQRORJ\ 0HLW<

GHSDUWPHQWV7KHEDFNERQHRIWKHFDPSXVQHWZRUN /LVWRILQVWLWXWHVKDVEHHQÀQDOLVHG96$7KXERI
KDVEHHQXSJUDGHGWR*ESVDQGQHZFRUHDQG (51(7 ,QGLD KDV EHHQ XSJUDGHG DQG SURFHVV RI
GLVWULEXWLRQVZLWFKHVKDYHEHHQLQVWDOOHG,Q3XQH LQVWDOODWLRQRI96$7LQLQVWLWXWHVLVJRLQJRQ
8QLYHUVLW\WKH:L)LGHSOR\PHQWLVFRPSOHWHGDQG
,3Y7UDLQLQJ3URJUDPPHIRU6WDIIRI*RYHUQPHQW
LV LQ XVH VLQFH  7RWDO  EXLOGLQJV
0LQLVWULHV DQG ,QVWLWXWLRQV 7KH REMHFWLYH RI WKH
GHSDUWPHQWVKRVWHOVKDYHEHHQFRYHUHG)RU:L)L
SURMHFW LV FDSDFLW\ EXLOGLQJ LQ WKH DUHD RI QH[W
DW 2VPDQLD 8WNDO DQG 1(+8 8QLYHUVLW\ WKH
JHQHUDWLRQ ,QWHUQHW SURWRFRO ,3Y WR HQKDQFH
GHSOR\PHQW LV LQ SURJUHVV $V SHU WKH SURSRVDO
DGRSWLRQ DQG GHSOR\PHQW RI ,3Y HVSHFLDOO\ LQ
DSSUR[LPDWH1RV1RV1RVEXLOGLQJV
*RYHUQPHQW RUJDQL]DWLRQV DQG DVVRFLDWHG
ZLOOEHFRYHUHGXQGHUWKH:L)LSURMHFWDW2VPDQLD
LQVWLWXWLRQV ,W LV H[SHFWHG WKDW DURXQG  VWDII
8QLYHUVLW\ 8WNDO 8QLYHUVLW\ DQG 1(+8 8QLYHUVLW\
IURP &HQWUDO6WDWH *RYHUQPHQW0LQLVWULHV DQG
UHVSHFWLYHO\ 2SWLFDO )LEHU &DEOH LV EHLQJ ODLGZLWK
UHODWHG RUJDQL]DWLRQV ZLOO EH WUDLQHG RQ XVH DQG
WKHDSSURYDOE\HDFKXQLYHUVLW\$FWLYHFRPSRQHQWV
GHSOR\PHQW RI ,3Y IUHH RI FRVW (51(7 ,QGLD LV
KDYH EHHQ GHOLYHUHG DQG LQVWDOODWLRQ RI DFWLYH
LPSOHPHQWLQJWKHSURMHFW0RUHWKDQVWDIIRIWKH
FRPSRQHQWVLVJRLQJRQ
&HQWUDO DQG 6WDWH *RYHUQPHQWV KDYH EHHQ
6HWWLQJ XS (GXURDP 6HUYLFHV LQ ,QGLD (GXURDP SURYLGHG KDQGVRQ WUDLQLQJ DQG VNLOOHG LQ ,3Y
VWDQGVIRU(GXFDWLRQ5RDPLQJ,WLVDVHFXUHZRUOG QHWZRUNDQG,QIUDVWUXFWXUH
ZLGH URDPLQJ DFFHVV VHUYLFH GHYHORSHG IRU WKH
6DIHDQG6HFXUH&\EHUVSDFH
LQWHUQDWLRQDOUHVHDUFKDQGHGXFDWLRQFRPPXQLW\,W
DOORZV VWXGHQWV UHVHDUFKHUV DQG VWDII IURP 1DWLRQDO &\EHU &RRUGLQDWLRQ &HQWUH 1&&& 
SDUWLFLSDWLQJLQVWLWXWLRQVWRREWDLQVHDPOHVV,QWHUQHW (YROYLQJF\EHUWKUHDWODQGVFDSHDQGLWVLPSDFWRQ
FRQQHFWLYLW\ DFURVV FDPSXVHV ZKLOH YLVLWLQJ ZHOOEHLQJRI,QIRUPDWLRQ7HFKQRORJ\DQG1DWLRQDO
('852$0HQDEOHGLQVWLWXWLRQVE\VLPSO\RSHQLQJ HFRQRP\QHFHVVLWDWHVWKHQHHGIRUQHDUUHDOWLPH
WKHLU PRELOH GHYLFHV DQG ZRUNLQJ RQ ORFDO :L)L VLWXDWLRQDODZDUHQHVVDQGUDSLGUHVSRQVHWRF\EHU
QHWZRUN7KHSURMHFWLVIXQGHGE\0HLW<DQGEHLQJ VHFXULW\LQFLGHQWV5HDOL]LQJWKHQHHG*RYHUQPHQW
LPSOHPHQWHGE\(51(7,QGLD KDV LQLWLDWHG DFWLRQV WR VHW XS WKH 1DWLRQDO &\EHU
&RRUGLQDWLRQ &HQWUH 1&&&  WR JHQHUDWH
(51(7KDVFRQQHFWHGPRUHWKDQLQVWLWXWHVLQ
PDFURVFRSLFYLHZVRIWKHF\EHUVHFXULW\EUHDFKHV
,QGLDOLNH,,7V,,0V1,7VDQGYDULRXVRWKHUUHQRZQHG
DQGF\EHUVHFXULW\WKUHDWVLQWKHFRXQWU\1&&&ZLOO
LQVWLWXWLRQV
EH D PXOWL VWDNHKROGHU ERG\ DQG ZLOO EH
6HWWLQJXS96$7FRQQHFWLYLW\IRU,QWHUQHW,QWUDQHWLQ LPSOHPHQWHG E\ ,QGLDQ &RPSXWHU (PHUJHQF\
WKH1RUWK(DVWHUQSDUWRIWKHFRXQWU\7KHREMHFWLYH 5HVSRQVH7HDP &(57,Q DW0LQLVWU\RI(OHFWURQLFV
RI WKH SURMHFW LV WR HVWDEOLVK &EDQG 96$7 DQG,QIRUPDWLRQ7HFKQRORJ\ 0HLW< 7KHFHQWUHZLOO
FRQQHFWLYLW\ DW  LQVWLWXWHV UHVHDUFK LQVWLWXWHV ZRUN ZLWK YDULRXV RUJDQL]DWLRQV LQ WKH FRXQWU\ WR
FROOHJHVDQGJRYHUQPHQWRUJDQL]DWLRQV LQUHPRWH FRXQWHUDQGPLWLJDWHDWWDFNVDQGF\EHULQFLGHQWVRQ
DUHDV RI 1RUWK (DVWHUQ RI WKH FRXQWU\ WR SURYLGH QHDU UHDO WLPH EDVLV 3KDVH  RI WKH SURMHFW IRU
,QWHUQHW DFFHVV $V SDUW RI WKH SURMHFW RQO\ WKRVH VHWWLQJXSRIWHVWEHGLVXQGHULPSOHPHQWDWLRQ
LQVWLWXWHVZLOOEHFRQQHFWHGZKLFKGRQRWKDYHDQ\
%RWQHW &OHDQLQJ DQG 0DOZDUH $QDO\VLV &HQWUH
IRUP RI ,QWHUQHW FRQQHFWLYLW\ 7KH SURMHFW LV EHLQJ
&\EHU 6ZDFKKWD .HQGUD  %RWQHW &OHDQLQJ DQG
LPSOHPHQWHGE\(51(7,QGLD


 $QQXDO5HSRUW

0DOZDUH$QDO\VLV&HQWUHKDVEHHQHVWDEOLVKHGE\ DIIRUGDEOHFRVWVµ
&(57,QIRUGHWHFWLRQRIFRPSURPLVHGV\VWHPVLQ
7KHREMHFWLYHVRIH.UDQWLDUHIROORZLQJ
,QGLD DQG WR QRWLI\ HQDEOH FOHDQLQJ DQG VHFXULQJ
V\VWHPV RI HQG XVHUV WR SUHYHQW IXUWKHU PDOZDUH L  7R UHGHÀQH 1H*3 ZLWK WUDQVIRUPDWLRQDO DQG
LQIHFWLRQV 7KH FHQWUH LV ZRUNLQJ LQ FORVH RXWFRPHRULHQWHGH*RYHUQDQFHLQLWLDWLYHV
FRRUGLQDWLRQDQGFROODERUDWLRQZLWK,QWHUQHW6HUYLFH LL  7R HQKDQFH WKH SRUWIROLR RI FLWL]HQ FHQWULF
3URYLGHUV DQG ,QGXVWU\ :HEVLWH RI WKH FHQWUH LV VHUYLFHV
RSHUDWLRQDOLVHG LQ 'HFHPEHU  7KH FHQWUH LV
LLL 7RHQVXUHRSWLPXPXVDJHRIFRUH,QIRUPDWLRQ 
SURYLGLQJGHWHFWLRQRIPDOLFLRXVSURJUDPVDQGIUHH
&RPPXQLFDWLRQ7HFKQRORJLHV ,&7V
WRROV WR UHPRYH WKH VDPH IRU FRPPRQ XVHUV
)XUWKHUWKHFHQWUHLVZRUNLQJZLWK%DQNVWRGHWHFW LY 7RSURPRWHUDSLGUHSOLFDWLRQDQGLQWHJUDWLRQRI
PDOZDUH LQIHFWLRQV LQ WKHLU QHWZRUNV DQG HQDEOH H*RYHUQDQFHDSSOLFDWLRQV
UHPHGLDODFWLRQV Y  7ROHYHUDJHHPHUJLQJWHFKQRORJLHV
*RYHUQDQFHDQG6HUYLFHVRQ'HPDQG YL 7R PDNH XVH RI PRUH DJLOH LPSOHPHQWDWLRQ
H.UDQWL(OHFWURQLF'HOLYHU\RI6HUYLFHV PRGHOV
7KH 1DWLRQDO H*RYHUQDQFH 3ODQ 1H*3  ZDV H.UDQWLLVEDVHGRQWKHIROORZLQJSULQFLSOHV
DSSURYHG LQ  ZLWK D YLVLRQ WR PDNH DOO L  7UDQVIRUPDWLRQDQGQRW7UDQVODWLRQ
*RYHUQPHQW VHUYLFHV DFFHVVLEOH WR WKH FRPPRQ
PDQ LQ KLV ORFDOLW\ WKURXJK FRPPRQ VHUYLFHV LL  ,QWHJUDWHG6HUYLFHVDQGQRW,QGLYLGXDO6HUYLFHV
GHOLYHU\RXWOHWVDQGHQVXUHHIÀFLHQF\WUDQVSDUHQF\ LLL *RYHUQPHQW 3URFHVV 5HHQJLQHHULQJ *35  WR
 UHOLDELOLW\ RI VXFK VHUYLFHV DW DIIRUGDEOH FRVWV EHPDQGDWRU\LQHYHU\0LVVLRQ 0RGH 3URMHFW
1H*3 KDV DFKLHYHG VLJQLÀFDQW VXFFHVV LQ LWV 003
REMHFWLYHV 0HLW< KDV LPSOHPHQWHG D QXPEHU RI
LY &ORXGE\'HIDXOW
SURMHFWV LQ WKH H*RYHUQDQFH GRPDLQ 7KHVH
LQFOXGHWKHFRUH,&7LQIUDVWUXFWXUHSURMHFWVVXFKDV Y  0RELOH)LUVW
6WDWH 'DWD &HQWUHV 6'&V  6WDWH :LGH $UHD YL 0DQGDWLQJ6WDQGDUGV
1 H W Z R U N V  6 : $ 1 V   & R P P R Q  6 H U Y L F H V
&HQWUHV &6&V  1DWLRQDO6WDWH 6HUYLFH *DWHZD\ YLL /DQJXDJH/RFDOL]DWLRQ
66'*V 0HJKUDM&ORXGSODWIRUP0RELOH6HYDHWF 7KHIROORZLQJQHZ003VZHUHDGGHGXQGHU
8QGHU 'LJLWDO ,QGLD SURJUDPPH 1H*3 KDV EHHQ H.UDQWL
UHYDPSHG WR H.UDQWL 7KH 9LVLRQ RI H.UDQWL LV L  H6DQVDG
´7UDQVIRUPLQJ H*RYHUQDQFH IRU 7UDQVIRUPLQJ
LL  H9LGKDDQ
*RYHUQDQFHµ7KH0LVVLRQRIH.UDQWLLV´7RHQVXUH
D*RYHUQPHQWZLGHWUDQVIRUPDWLRQE\GHOLYHULQJDOO LLL )LQDQFLDO,QFOXVLRQ
*RYHUQPHQW VHUYLFHV HOHFWURQLFDOO\ WR WKH FLWL]HQV LY 5RDGV DQG  +LJKZD\V ,QIRUPDWLRQ 6\VWHP
WKURXJK LQWHJUDWHG DQG LQWHURSHUDEOH V\VWHPV YLD 5$+, 
PXOWLSOH PRGHV ZKLOH HQVXULQJ HIÀFLHQF\
WUDQVSDUHQF\  UHOLDELOLW\ RI VXFK VHUYLFHV DW Y  $JULFXOWXUH


0LQLVWU\RI(OHFWURQLFV ,QIRUPDWLRQ7HFKQRORJ\ 0HLW<

YL 1*,6 FLWL]HQFHQWULFVHUYLFHVDWWKHGLVWULFWRUVXEGLVWULFW
OHYHO 0LQLVWU\ RI (OHFWURQLFV  ,QIRUPDWLRQ
YLL 5XUDO'HYHORSPHQW
7HFKQRORJ\ 0HLW<  *RYHUQPHQW RI ,QGLD *R,  LV
YLLL  6RFLDO%HQHÀWV WKHQRGDO0LQLVWU\IRUH'LVWULFW0037KLV003LV
L[ :RPHQDQG&KLOG'HYHORSPHQW EHLQJ LPSOHPHQWHG E\  6WDWH *RYHUQPHQWV87
$GPLQLVWUDWLRQVWKURXJKWKHLUGHVLJQDWHGDJHQFLHV
[  &RPPRQ ,7 5RDGPDS IRU 3DUDPLOLWDU\ )RUFHV
7KH003HQYLVDJHVOHYHUDJLQJDQGXWLOL]LQJWKHIRXU
&$3)
SLOODUVRIHLQIUDVWUXFWXUHQDPHO\6WDWH'DWD&HQWUH
[L H%KDVKD 6'&  6WDWH :LGH $UHD 1HWZRUN 6:$1  6WDWH
[LL 10(,&7 6HUYLFH 'HOLYHU\ *DWHZD\ 66'*  DQG &RPPRQ
6HUYLFHV &HQWUH &6&  7KH 6FKHPH IRU WKH
[LLL  8UEDQ*RYHUQDQFH 1DWLRQDO 5ROORXW RI WKH H'LVWULFW 003 KDV EHHQ
9DULRXVVFKHPHVSURMHFWVDUHEHLQJLPSOHPHQWHG DSSURYHG ZLWK D ÀQDQFLDO RXWOD\ RI 5V 
E\0HLW<XQGHUH.UDQWL7KHUHDUH&HQWUDO &URUHVLQ$SULO
6WDWHDQG,QWHJUDWHG003V 2EMHFWLYHH'LVWULFW0037KHREMHFWLYHVRIWKH
$FKLHYHPHQWV H'LVWULFW SURMHFW DUH WR HQVXUH HQGWRHQG
ZRUNÁRZ WR HQVXUH GHOLYHU\ RI H6HUYLFHV E\
‡  003V DUH SURYLGLQJ IXOOSDUWLDO VHUYLFHV 
XQGHUWDNLQJ %XVLQHVV 3URFHVV 5HHQJLQHHULQJ
003V DUH XQGHU LPSOHPHQWDWLRQ DQG  DUH
%35  RI VHUYLFHV SURYLGLQJ HDV\ DQ\ZKHUH DQG
XQGHUGHVLJQGHYHORSPHQWDQGVFRSLQJVWDJH
DQ\WLPHDFFHVVWR*RYHUQPHQWVHUYLFHV
,QWHQGHG%HQHÀWV2XWFRPHVH'LVWULFW003
7KH SURMHFW LQWHQGV WR DFKLHYH EHORZ
PHQWLRQHGEHQHÀWVRXWFRPHV
D  $VVXUHG UHOLDEOH DQG HIÀFLHQW GHOLYHU\ RI KLJK
YROXPHFLWL]HQVHUYLFHVHOHFWURQLFDOO\DQGZLWK
SURFHVVUHHQJLQHHULQJDWWKHGLVWULFWOHYHOLQDOO
WKHGLVWULFWVRIWKHFRXQWU\
E  6HUYLFHIXOÀOOPHQWIRUWKHFLWL]HQVZLOOEHTXLFNHU
‡ H*RYHUQDQFHVHUYLFHVDUHEHLQJUHQGHUHG
XQGHUWKHVDLG003V F  &LWL]HQVVDYHWLPH PRQH\

‡ 0RUHWKDQFURUHHOHFWURQLFWUDQVDFWLRQVSHU G  0RGHUQL]DWLRQ RI 'LVWULFW $GPLQLVWUDWLRQ ZLWK

PRQWK DUH WDNLQJ SODFH DW ERWK QDWLRQDO DQG WUDLQLQJDQGFDSDFLW\EXLOGLQJDWDOOOHYHOV
VWDWH OHYHO HJRYHUQDQFH SURMHFWV LQFOXGLQJ H  7UDQVSDUHQF\DQG*RRG*RYHUQDQFHUHVXOWLQJ
003V LQHPSRZHUPHQWRIFLWL]HQV
 H'LVWULFW &RYHUDJHDQG6HUYLFHVXQGHUH'LVWULFW003
H'LVWULFWLVD0LVVLRQ0RGH3URMHFW 003 WKDWDLPV 7KH H'LVWULFW 003 FXUUHQWO\ FRYHUV DOO GLVWULFWV
DW HOHFWURQLF GHOLYHU\ RI LGHQWLÀHG KLJK YROXPH DFURVVDOOVWDWHV87V8QGHUWKHVFKHPH0HLW<


 $QQXDO5HSRUW

LVIXQGLQJWKH6WDWH'HVLJQDWHG$JHQFLHV 6'$V RI 5DMDVWKDQ 

HDFKVWDWH87IRULPSOHPHQWDWLRQRIWKHSURMHFWRYHU
7DPLO1DGX 
DSHULRGRI\HDUVFDWHJRULHV PDQGDWRU\
6WDWH876SHFLÀF RILGHQWLÀHGKLJKYROXPHFLWL]HQ 7HODQJDQD 
FHQWULF SXEOLF VHUYLFHV DW GLVWULFW DQG VXEGLVWULFW 7ULSXUD 
OHYHO ZLOO EH WDNHQ XS IRU LPSOHPHQWDWLRQ WR EH
8WWDU3UDGHVK 
HOHFWURQLFDOO\GHOLYHUHGXQGHUWKLVSURMHFW
8WWDUDNKDQG 
6HUYLFHV /DXQFK 6WDWXV H'LVWULFW 003 H
'LVWULFWVHUYLFHVKDYHEHHQODXQFKHGLQGLVWULFWV :HVW%HQJDO 
LQFOXGLQJSLORWGLVWULFWV DFURVV6WDWHV87V 3URJUHVVH'LVWULFW
7KHVWDWXVLVLQGLFDWHGLQWKHWDEOHEHORZ
‡ (PSRZHUHG&RPPLWWHHKDVDSSURYHG'35VRI
H'LVWULFW6HUYLFHV/DXQFKHG&RYHUHGLQ DOO6WDWHV87V $SSURYDORIUHYLVHG'35IURP
'LVWULFWV QHZ6WDWHV7HODQJDQDDQG$QGKUD3UDGHVKLV
 $QGKUD3UDGHVK  3HQGLQJ 
 $VVDP  ‡ 6308 VHOHFWHG LQ  6WDWHV87V  LQ 
6WDWHV87V 
 &KDQGLJDUK 
‡ 'H*6 IRUPHG LQ  6WDWHV  LQ 
&KKDWWLVJDUK 
6 W D W H V  8 7V   S D U W L D O O \  F R P S O H W H G  L Q   
'DGUD 1DJDU+DYHOL  6WDWHV87V 
'HOKL  ‡ H'LVWULFW 0DQDJHUV VHOHFWLRQ LQLWLDWHG LQ 
*XMDUDW  6WDWHV87V  VHOHFWHG LQ  6WDWHV87V
SDUWLDOO\ VHOHFWHG LQ  6WDWHV  87V SURFHVV
+DU\DQD 
LQLWLDWHGLQ6WDWHV87VDQG6WDWHV87V
+LPDFKDO3UDGHVK  KDYHQRWLQLWLDWHG
-KDUNKDQG  ‡ ,PSOHPHQWDWLRQ XQGHU SURJUHVV ²  6WDWHV 
87VKDYHVHOHFWHG6,IRULPSOHPHQWDWLRQ
.HUDOD 
‡ %LGSURFHVVLQ$GYDQFHVWDJHLPSOHPHQWDWLRQ
0DGK\D3UDGHVK 
DERXWWRVWDUW²6WDWHLQDGYDQFHVWDJH
0DKDUDVKWUD 
‡ 6WDWHV87VKDYHGHFLGHGWRDSSRLQW1,&DV
0DQLSXU  WKHLU $SSOLFDWLRQ 'HYHORSPHQW $JHQF\0R8
0HJKDOD\D  VLJQHGE\6WDWHV87V

0L]RUDP  ‡ /DXQFKRIH'LVWULFWVHUYLFHV²2YHUDOOH'LVWULFW

VHUYLFHV KDYH EHHQ ODXQFKHG LQ  GLVWULFWV
1DJDODQG 
DFURVV6WDWHV )<GLVWULFWV)<
2GLVKD  GLVWULFWV)<GLVWULFWV)<
3XQMDE  GLVWULFWV)<GLVWULFWV


0LQLVWU\RI(OHFWURQLFV ,QIRUPDWLRQ7HFKQRORJ\ 0HLW<

‡ ,VVXDQFHRI*XLGHOLQHV$GYLVRULHV SURYHG WKDW XVH RI -$0 FDQ FRQVLGHUDEO\ UHGXFH

OHDNDJHVUHGXFHLGOHIXQGVORZHUFRUUXSWLRQDQG
‡ 1DWLRQDO5ROORXW*XLGHOLQHV
LPSURYH HDVH RI GRLQJ EXVLQHVV ZLWK WKH
‡ H'LVWULFW0DQDJHU+LULQJ*XLGHOLQHV JRYHUQPHQW
‡ ,QWHJUDWHG)UDPHZRUNIRU'HOLYHU\RIH'LVWULFW H.<&%DVHGRQLQGXVWU\LQSXWVZKLFKZDVORRNLQJ
6HUYLFHV*XLGHOLQHV IRU GLJLWDO .<& VROXWLRQ FRPLQJ GLUHFWO\ IURP WKH
‡ ,PSOHPHQWDWLRQ *XLGHOLQHV  3URYLGLQJ LVVXHU RI .<& 8,'$, GHYHORSHG DQRWKHU VHUYLFH
)OH[LELOLW\WR6WDWHV FDOOHG H.<& :KLOH GHYHORSLQJ WKLV 8,'$,
PDLQWDLQHGWKHSULYDF\RIWKHLQGLYLGXDOE\VKDULQJ
‡ +RUL]RQWDO&RQQHFWLYLW\*XLGHOLQHV GHPRJUDSKLF GDWD RI DQ LQGLYLGXDO RQO\ DIWHU
‡ 'UDIW $JUHHPHQW 7HPSODWH IRU 6WDWHV  87V UHFHLYLQJ H[SOLFLW DXWKRUL]DWLRQ FRQVHQW  IURP WKH
RSWLQJ 1,& DV WKH ,PSOHPHQWDWLRQ $JHQF\ IRU FRQFHUQHG LQGLYLGXDO 8,'$, KDV HVWDEOLVKHG DQ
H'LVWULFW003 HFRV\VWHP ZKLFK HQVXUHV WKDW D UHVLGHQW FDQ
GLJLWDOO\ VKDUH WKH .<& ZLWK D UHJLVWHUHG VHUYLFH
‡ 5HSRUWRQ´%XVLQHVV3URFHVV5HHQJLQHHULQJRI
SURYLGHU E\ DXWKRUL]LQJ 8,'$, ZKHQHYHU KHVKH
+LJK9ROXPH*RYHUQPHQWWR&LWL]HQ6HUYLFHVµ
ZDQWHG WR VKDUH KLVKHU .<& ZLWK WKH VHUYLFH
‡ $GYLVRU\RQ2SHUDWLRQDO([SHQVHVRIH'LVWULFW SURYLGHUWRDYDLODVHUYLFH
0DQDJHU
:LWK WKH H[SOLFLW FRQVHQW  DXWKRUL]DWLRQ E\ WKH
‡ $GYLVRU\RQ,PSOHPHQWLQJ5DWLRQ&DUGVHUYLFHV UHVLGHQW WKH $DGKDDU H.<& VHUYLFH SURYLGHV DQ
XQGHUH'LVWULFWSURMHFW LQVWDQWHOHFWURQLFQRQUHSXGLDEOHSURRIRILGHQWLW\
‡ $GYLVRU\ RQ ,PSOHPHQWLQJ %LUWK  'HDWK DQGSURRIRIDGGUHVVDORQJZLWKGDWHRIELUWKDQG
VHUYLFHVXQGHUH'LVWULFWSURMHFW JHQGHU,QDGGLWLRQLWDOVRSURYLGHVWKHUHVLGHQW·V
PRELOH QXPEHU DQG HPDLO DGGUHVV WR WKH VHUYLFH
*XLGHOLQHVIRUXVLQJ+DQGKHOGGHYLFHVIRUH'LVWULFW SURYLGHU ZKLFK KHOSV LQ IXUWKHU VWUHDPOLQLQJ WKH
6HUYLFHV SURFHVVRIVHUYLFHGHOLYHU\
 $OO6HUYLFHVWKURXJKRQOLQH PRELOH 3URJUDPPHRQ*RRG*RYHUQDQFHDQG 
7KH IRFXV WRGD\ LV RQ GHVLJQLQJ H*RYHUQDQFH %HVW3UDFWLFHV
DSSOLFDWLRQV LQ VXFK D ZD\ WKDW WKH UHODWHG 7KLV VFKHPH KDV EHHQ LQLWLDWHG WR SURPRWH
LQIRUPDWLRQ VHUYLFHV DQG JULHYDQFH KDQGOLQJ ,QIRUPDWLRQDQG&RPPXQLFDWLRQ7HFKQRORJ\ ,&7 
PHFKDQLVP DUH DFFHVVLEOH RQOLQH RQ D UHDO WLPH HQDEOHGJRRGJRYHUQDQFHLQWKHFRXQWU\8QGHUWKLV
EDVLVDQGDFURVVDOOW\SHVRIDFFHVVGHYLFHVVXFK VFKHPH0HLW<KDVÀQDOL]HGDVFKHPHWRSURPRWH
DV GHVNWRS FRPSXWHUV ODSWRSV WDEOHWV PRELOHV H*RYHUQDQFH LQ WKH FRXQWU\ ZKHUHLQ WKH
HWF UHSOLFDWLRQ RI VXFFHVVIXO H*RYHUQDQFH SUDFWLFHV
-$07ULQLW\²-DQGKDQ$DGKDDU0RELOHFDQKHOS DQG DSSOLFDWLRQV ZRXOG EH WDNHQ XS DQG
JRYHUQPHQWWRLPSOHPHQWODUJHVFDOHWHFKQRORJ\ GHSDUWPHQWVZRXOGDOVREHHQFRXUDJHGWRFRPHXS
HQDEOHG DQG UHDOWLPH 'LUHFW %HQHÀW 7UDQVIHUV ZLWKQHZDSSOLFDWLRQVLQXQFRYHUHGGRPDLQV8QGHU
'%7V WRLPSURYHHFRQRPLFOLYHVRI,QGLD·VSRRU WKLVVFKHPHSURMHFWSURSRVDOVIURPFHQWUDO6WDWH
,QWURGXFWLRQ RI '%7 LQ /3* DQG 0*15(*6 KDYH 87V*RYWGHSDUWPHQWVKDYHEHHQDVNHGDQGVDPH


 $QQXDO5HSRUW

ZLOOEHIXQGHGDIWHUGXHDVVHVVPHQWDQGGHSHQGLQJ $FKLHYHPHQWV
XSRQ WKH PHULW RI WKH SURMHFW  :RUNLQJ *URXS
‡  SURMHFWV DPRXQWLQJ WR C FURUH KDYH
PHHWLQJV KDYH EHHQ FRQGXFWHG DQG  SURMHFWV
EHHQ ODXQFKHG LPSOHPHQWHG DQG IXQGV
KDYH EHHQ UHFRPPHQGHG IRU DSSURYDO LQ WKH DPRXQWLQJWRCFURUHKDYHEHHQUHOHDVHG
:RUNLQJ*URXS2XWRIWKHVHSURMHFWVKDYHEHHQ IRUYDULRXVSURMHFWVIXQGHGXQGHUWKLVVFKHPH
DSSURYHGDQGDUHXQGHULPSOHPHQWDWLRQ
1DWLRQDO6FKRODUVKLSV3RUWDO
:RUOG%DQNDVVLVWHG´,QGLDH'HOLYHU\
RI3XEOLF6HUYLFHVµ3URMHFW 1DWLRQDO 6FKRODUVKLSV 3RUWDO LV RQHVWRS VROXWLRQ
WKURXJK ZKLFK YDULRXV VHUYLFHV VWDUWLQJ IURP
)ROORZLQJDSSURYDORID'HYHORSPHQW3ROLF\/RDQ
V W X G H Q W  D S S O L F D W L R Q   D S S O L F D W L R Q  U H F H L S W 
DPRXQWLQJWR86PLOOLRQ DERXW5VFURUH 
SURFHVVLQJ VDQFWLRQ DQG GLVEXUVDO RI YDULRXV
IURPWKH:RUOG%DQNIRUSURJUDPPHPDQDJHPHQW
VFKRODUVKLSV WR 6WXGHQWV DUH HQDEOHG 1DWLRQDO
DQG ÀQDQFLDO VXSSRUW IRU 1DWLRQDO H*RYHUQDQFH 6FKRODUVKLSV 3RUWDO LV WDNHQ DV 0LVVLRQ 0RGH
3ODQ 1H*3 0HLW<KDVEHHQXWLOLVLQJWKLVVXSSRUW 3URMHFWXQGHU1DWLRQDOH*RYHUQDQFH3ODQ 1H*3 
DV D IRFDO SRLQW WR FRQYHQH DOO WKH DVVRFLDWHG ,WDLPVDWSURYLGLQJD6LPSOLÀHG0LVVLRQRULHQWHG
GHSDUWPHQWVRIWKHFHQWUDODQGVWDWHJRYHUQPHQWV $FFRXQWDEOH 5HVSRQVLYH  7UDQVSDUHQW 60$57 
DURXQGDFRQFUHWHUHIRUPDJHQGDIRUHJRYHUQDQFH 6\VWHP IRU IDVWHU  HIIHFWLYH GLVSRVDO RI
LQWKHFRXQWU\0HLW<LVVXSSRUWLQJFULWLFDOSROLF\DQG 6FKRODUVKLSV DSSOLFDWLRQV DQG GHOLYHU\ RI IXQGV
LQVWLWXWLRQDO DFWLRQV RI WKH FHQWUDOVWDWH87 GLUHFWO\ LQWR EHQHÀFLDULHV DFFRXQW ZLWKRXW DQ\
JRYHUQPHQWV WKDW HQWDLO HGHOLYHU\ RI VHUYLFHV OHDNDJHVE\SURYLGLQJFRPPRQHOHFWURQLFSRUWDOIRU
OHDGLQJ WR PRUH UREXVW LPSOHPHQWDWLRQ RI 1H*3 LPSOHPHQWLQJ YDULRXV 6FKRODUVKLSV VFKHPHV
ZLWK VLJQLÀFDQW VRFLDO EHQHÀWV IRU WKH SRSXODWLRQ ODXQFKHGE\8QLRQ*RYHUQPHQW6WDWH*RYHUQPHQW
DQGSRVLWLYHLPSDFWVRQWKHSRRU DQG8QLRQ7HUULWRULHVDFURVVWKHFRXQWU\
5DSLG 5HSOLFDWLRQ 3URMHFWV IXQGHG XQGHU 2EMHFWLYHV
:RUOG%DQN0HLW<KDVDSSURYHGSURMHFWVXQGHU
‡ (QVXUHWLPHO\GLVEXUVHPHQWRI6FKRODUVKLSVWR
UDSLGUHSOLFDWLRQLQLWLDWLYHQDPHO\
VWXGHQWV
‡ SURMHFWVRIH3$66
‡ 3 U R Y L G H  D  F R P P R Q  S R U W D O  I R U  Y D U L R X V
‡ ;/1
6FKRODUVKLSV VFKHPHV RI &HQWUDO DQG 6WDWH
‡ H+RVSLWDO *RYHUQPHQWV
‡ H+506 ‡ &UHDWHDWUDQVSDUHQWGDWDEDVHRIVFKRODUV
‡ 0HH6HYD ‡ $YRLGGXSOLFDWLRQLQSURFHVVLQJ
$VRQDWRWDORISURMHFWVDPRXQWLQJ
‡ +DUPRQLVDWLRQ RI GLIIHUHQW 6FKRODUVKLSV
WRCFURUHKDYHEHHQDSSURYHG)XQGVIRU
VFKHPHV QRUPV
SURMHFWV KDYH EHHQ UHOHDVHG WR WKH LPSOHPHQWLQJ
DJHQFLHVLQYDULRXVVWDWHV87V$WRWDORISURMHFWV ‡ $SSOLFDWLRQRI'LUHFW%HQHÀW7UDQVIHU
ZLWK D WRWDO RXWOD\ RI C FURUH KDYH EHHQ %HQHÀWV
FRQVLGHUHG XQGHU H%KDUDW VFKHPH IRU IXQGLQJ
DVVLVWDQFHWLOOGDWH ‡ 6LPSOLÀHGSURFHVVIRUWKHVWXGHQWV


0LQLVWU\RI(OHFWURQLFV ,QIRUPDWLRQ7HFKQRORJ\ 0HLW<

  $OOVFKRODUVKLSVLQIRUPDWLRQDYDLODEOHXQGHU *RYHUQPHQW RI ,QGLD DV D VLQJOH VWRS VROXWLRQ IRU

RQHXPEUHOOD GLVEXUVDORI6FKRODUVKLSGLUHFWO\WRWKH$FFRXQWVRI
WKH 6WXGHQWV &HQWUDO 6SRQVRUHG 6FKRODUVKLS
  6LQJOH LQWHJUDWHG DSSOLFDWLRQ IRU DOO
6FKHPHVKDYHEHHQFRYHUHGXQGHU'LUHFW%HQHÀWV
VFKRODUVKLSV
7UDQVIHUZKHUHEHQHÀFLDULHVDUHYHULÀHGRQ$DGKDDU
‡ ,PSURYHGWUDQVSDUHQF\ 1XPEHU RU LQ DEVHQFH RI $DGKDDU QXPEHU HLWKHU
  6\VWHPVXJJHVWVWKHVFKHPHVIRUZKLFKD HQUROPHQWLG (,' RUWKHLUUHVSHFWLYH%DQN3RVWDO
VWXGHQWLVHOLJLEOH $FQXPEHUDQGSD\PHQWWRWKHVWXGHQWVLVPDGH

  'XSOLFDWHVFDQEHUHGXFHGWRWKHPD[LPXP 7 K H  6 F K H P H V  F R Y H U V     O L Q H  0 L Q L V W U L H V 
H[WHQW 'HSDUWPHQWVFRYHULQJDOPRVW&HQWUDO6FKHPHV
&XUUHQWO\OLQH0LQLVWULHV'HSDUWPHQWVFRYHULQJ
‡ +HOSVLQVWDQGDUGLVDWLRQ VFKHPHVDUHRQERDUGHGLQWKH163SRUWDO7KH
  0DVWHUGDWDIRU,QVWLWXWLRQVDQGFRXUVHVDW 5HVW RI WKH VFKHPHV RI WKH  0LQLVWULHV
DOO,QGLDOHYHO 'HSDUWPHQWV DUH EHLQJ LQWHJUDWHG LQWR WKH SRUWDO
WKURXJK$3,LHWKURXJKEDFNZDUGLQWHJUDWLRQZLWK
  6FKRODUVKLSVSURFHVVLQJ
163WRKDYHDKROLVWLFYLHZRIDOOVFKHPHVDWRQH
‡ 6HUYHVDVDGHFLVLRQVXSSRUWV\VWHP '66 IRU SODFH
0LQLVWULHV DQG GHSDUWPHQWV DV XSWR GDWH
'LJLWDO/RFNHU RWKHULQLWLDWLYHV
LQIRUPDWLRQZLOOEHDYDLODEOHRQGHPDQG
'LJLWDO/RFNHU
‡ &RPSUHKHQVLYH 0,6 6\VWHP WR IDFLOLWDWH
PRQLWRULQJ HYHU\ VWDJH RI 6FKRODUVKLSV 'LJL/RFNHULVDNH\LQLWLDWLYHXQGHU'LJLWDO,QGLDWKH
GLVWULEXWLRQ LH IURP VWXGHQW UHJLVWUDWLRQ WR ,QGLDQ*RYHUQPHQW·VÁDJVKLSSURJUDPPHDLPHGDW
GHOLYHU\RIIXQGV WUDQVIRUPLQJ ,QGLD LQWR D GLJLWDOO\ HPSRZHUHG
VRFLHW\DQGNQRZOHGJHHFRQRP\
$FKLHYHPHQWV
7DUJHWHG DW WKH LGHD RI SDSHUOHVV JRYHUQDQFH
‡ 1R RI 0LQLVWULHV'HSDUWPHQWV RQERDUGHG RQ
'LJL/RFNHU LV D SODWIRUP IRU LVVXDQFH DQG
163  
YHULÀFDWLRQRIGRFXPHQWV FHUWLÀFDWHVLQDGLJLWDO
‡ 1RRIVFKHPHVRQERDUGHGRQ163   ZD\ WKXV HOLPLQDWLQJ WKH XVH RI SK\VLFDO
‡ 1R RI VWXGHQWV VXEPLWWHG WKHLU DSSOLFDWLRQV GRFXPHQWV ,QGLDQ UHVLGHQWV ZKR VLJQ XS IRU D
)UHVK  'LJL/RFNHUDFFRXQWJHWDGHGLFDWHGFORXGVWRUDJH
VSDFH
‡ 1R RI VWXGHQWV VXEPLWWHG WKHLU DSSOLFDWLRQV
5HQHZDO  2UJDQL]DWLRQVWKDWDUHUHJLVWHUHGZLWK'LJLWDO/RFNHU
FDQ SXVK HOHFWURQLF FRSLHV RI GRFXPHQWV DQG
‡ 1R RI VWXGHQWV VXEPLWWHG WKHLU DSSOLFDWLRQV FHUWLÀFDWHV HJ'ULYLQJ/LFHQVH9RWHU,'6FKRRO
7RWDO)UHVK5HQHZDO  FHUWLÀFDWHV  GLUHFWO\ LQWR FLWL]HQV· ORFNHUV &LWL]HQV
1DWLRQDO6FKRODUVKLS3RUWDO FDQ DOVR XSORDG VFDQQHG FRSLHV RI WKHLU OHJDF\
GRFXPHQWV LQ WKHLU DFFRXQWV 7KHVH OHJDF\
1DWLRQDO 6FKRODUVKLS 3RUWDO 163   KDV EHHQ
GRFXPHQWVFDQEHHOHFWURQLFDOO\VLJQHGXVLQJWKH
ODXQFKHG DQG RSHUDWLRQDO IURP VW -XO\  E\
H6LJQIDFLOLW\


 $QQXDO5HSRUW

‡ 3DSHUOHVV ,W UHGXFHV WKH DGPLQLVWUDWLYH

RYHUKHDG RI *RYHUQPHQW GHSDUWPHQWV E\
PLQLPL]LQJWKHXVHRISDSHU
‡ $XWKHQWLFLW\'LJLWDO/RFNHUPDNHVLWHDVLHUWR
YDOLGDWHWKHDXWKHQWLFLW\RIGRFXPHQWVDVWKH\
DUHLVVXHGGLUHFWO\E\WKHUHJLVWHUHGLVVXHUV
‡ H6LJQ 6HOIXSORDGHG GRFXPHQWV FDQ EH
GLJLWDOO\VLJQHGXVLQJWKHH6LJQIDFLOLW\ ZKLFKLV
VLPLODUWRWKHSURFHVVRIVHOIDWWHVWDWLRQ 
$FKLHYHPHQWV
‡ ODNK5HJLVWHUHG8VHUV
‡ FURUH,VVXHG'RFXPHQWV
‡ ODNK8SORDGHG'RFXPHQWV
‡ ODNKH6LJQHG'RFXPHQWV
&LWL]HQ&RQWDFW&HQWUH
&LWL]HQ&RQWDFW&HQWUH &&& LVD*&SLORWSURMHFW
EHLQJ LPSOHPHQWHG E\ 0HLW< WR SURYLGH QRQ
7KH IROORZLQJ DUH WKH NH\ VWDNHKROGHUV LQ WKH HPHUJHQF\ ,QIRUPDWLRQDODQG7UDQVDFWLRQDO FORXG
'LJL/RFNHUV\VWHP EDVHG FDOO FHQWUH VHUYLFHV RYHU D VLQJOH XQLTXH
QXPEHUDFURVVWKHFRXQWU\7KHSURMHFWDLPVWR
‡ ,VVXHU (QWLW\ LVVXLQJ HGRFXPHQWV WR VLPSOLI\*RYHUQPHQW&LWL]HQUHODWLRQVKLSZKHUHWKH
LQGLYLGXDOV LQ D VWDQGDUG IRUPDW DQG PDNLQJ KDUGVKLSV H[SHULHQFHG E\ FLWL]HQ LQ DFFHVVLQJ
WKHP HOHFWURQLFDOO\ DYDLODEOH HJ &%6( JRYHUQPHQWVHUYLFHVDUHGRQHDZD\ZLWK
5HJLVWUDU2IÀFH,QFRPH7D[GHSDUWPHQWHWF
7KH SURMHFW HQYLVDJHV WR XVH $XWRPDWLF 6SHHFK
‡ 5HTXHVWHU(QWLW\UHTXHVWLQJVHFXUHDFFHVVWR 5HFRJQLWLRQ  $65    DXWRPDWLF   TXHU\
D SDUWLFXODU HGRFXPHQW VWRUHG ZLWKLQ D LGHQWLÀFDWLRQDQGFXVWRPHUUHODWLRQVKLSV\VWHPVWR
UHSRVLWRU\ HJ 8QLYHUVLW\ 3DVVSRUW 2IÀFH HQKDQFHWKHHIIHFWLYHQHVVDQGUHVSRQVLYHQHVV,WLV
5HJLRQDO7UDQVSRUW2IÀFHHWF FXUUHQWO\ EHLQJ LPSOHPHQWHG LQ IRXU SLORW 6WDWHV
‡ 5HVLGHQW $Q LQGLYLGXDO ZKR XVHV WKH 'LJLWDO 7DPLO1DGX- .-KDUNKDQGDQG&KKDWWLVJDUKIRU
/RFNHUVHUYLFHEDVHGRQ$DGKDDUQXPEHU WKH6WDWHOHYHOQRQHPHUJHQF\VHUYLFHVDQGDOVR
IHZ&HQWUDO*RYHUQPHQWVHUYLFHV
%HQHÀWVRI'LJL/RFNHU
$FKLHYHPHQWV
‡ $FFHVV &LWL]HQV FDQ DFFHVV WKHLU GLJLWDO
GRFXPHQWV DQ\WLPH DQ\ZKHUH DQG VKDUH LW ‡ 7KH SURMHFW LPSOHPHQWDWLRQ LV LQ SURJUHVV E\
RQOLQH &'$&  0XPEDL LQ WZR SLORW 6WDWHV QDPHO\
&KKDWWLVJDUK - . DQG &HQWUDO *RYHUQPHQW


0LQLVWU\RI(OHFWURQLFV ,QIRUPDWLRQ7HFKQRORJ\ 0HLW<

'HSDUWPHQWV DQGRQWKHRWKHUKDQGHPSRZHUHGWKHVWXGHQWWREH
WDXJKW E\ VXEMHFW H[SHUW VLWWLQJ DW IDU HQG ,W LV
‡ 7RWDO  VHUYLFHV KRVWHG IRU WKH VWDWHV RI
HQYLVDJHGWKDWLQ3KDVH²,RIWKHSURMHFWWKHÀYH
&KKDWWLVJDUK-KDUNKDQGDQGDVZHOODVIRUWKH
VWDWHV WDNHQDVSLORWVWDWHVDVLGHQWLÀHGE\0+5' 
&HQWUDO*RYHUQPHQW6HUYLFH´'LJLWDO/RFNHUµLQ
ZLOOEHWDNHQZKHUHDVXEVWDQWLDOQXPEHURI',(7
WKHSLORWVHWXS
ORFDWLRQV WREHVHOHFWHGEDVHGRQDYDLODELOLW\RIUDZ
‡ 7RWDO  VHUYLFHV LQWHJUDWHG ZLWK $XWRPDWLF SRZHU  ,QWHUQHW FRQQHFWLYLW\ HWF  DORQJ ZLWK
6SHHFK 5HFRJQLWLRQ $65  LQ WKH &&& SLORW VFKRROVXQGHULWVMXULVGLFWLRQIURPDOOWKHÀYHVWDWH
VHWXSDQGIXUWKHUZRUNRILQWHJUDWLRQRIDURXQG ZLOOEHSLFNHGIRULPSOHPHQWDWLRQRISURMHFW
DGGLWLRQDOVHUYLFHVLVLQSURJUHVV
‡ $FKLHYHPHQWV
‡ ,956 2SHQ VRXUFH EDVHG $VWHULVN VRIWZDUH
‡ 'HOLYHU\RIOHFWXUHVVHUYLFHVKDVEHHQVWDUWHGLQ
FXVWRPLVHGDQGFRQÀJXUHGWRDFWDV$XWRPDWLF
7DPLO 1DGX *XMDUDW 5DMDVWKDQ  $QGKUD
&DOO'LVWULEXWLRQ $&' 'HFODUDWLRQRI+ROLGD\V
3UDGHVK
&DOO ÁRZ IRU YDULRXV SLORW VWDWHV DQG LWV
DVVRFLDWHG VHUYLFHV LQFOXGLQJ LWV LQWHJUDWLRQ ‡ $WRWDORIQRRIWHDFKHUWUDLQHG
ZLWK 7H[WWR6SHHFK 776  6\VWHP WKHUHE\
‡ $SSUR[LPDWHO\QRRIVWXGHQWVKDYHVR
JLYLQJ UHVSRQVHV WR WKH FDOOHU DXWRPDWLFDOO\
IDUEHHQEHQHÀWWHG
ZLWKRXWWKHLQWHUYHQWLRQRI+XPDQ2SHUDWRU
‡ 7HDFKHUVDUHDEOHWRWHDFKUHPRWHVWXGHQWVZLWK
‡ &50 7KH 2SHQ VRXUFH EDVHG 6XLW &50
DQLPDWHGYLGHRFOLSVLQWKHÀHOGRIOLIHVFLHQFH
FXVWRPL]HG WR KROG LQIRUPDWLRQ RI PXOWLSOH
HQYLURQPHQWDOVWXGLHV3K\VLFVHWF
VWDWHVDQGLWVVHUYLFHVLQVXFKDZD\WKDWWKLV
L Q I R U P D W L R Q  L V  P D Q D J H G  E \  P H D Q V  R I ‡ 7KH6PDUW&ODVVLQIUDDUHDOVREHLQJOHYHUDJHG
HPEHGGHGFRQWHQWPDQDJHPHQWSRUWDO IRUODXQFKLQJWKHGLJLWDOSD\PHQWFDPSDLJQ

‡ $65 $URXQG  VSHDNHU VSHHFK GDWD ‡ QXPEHUVRIVHVVLRQVKDYHEHHQFRQGXFWHG

FROOHFWHG IURP -KDUNKDQG &KKDWWLVJDUK DQG RQGLJLWDOSD\PHQWFDPSDLJQ
7DPLOQDGXVWDWHV WUDQVFULEHGDQGXVHGLQ$65 ‡ 6WXGHQWV 7HDFKHUVKDYHDWWHQGHGWKH
V\VWHPEXLOGLQJ GLJLWDOSD\PHQWFDPSDLJQ
(QDEOLQJ$OO6FKRROVZLWK9LUWXDO&ODVV 2SHQ*RYHUQPHQW'DWD 2*' SODWIRUP
5RRPV IRU1DWLRQDO'DWD6KDULQJ $FFHVVLELOLW\3ROLF\
0HLW<LVLPSOHPHQWLQJDVFKHPHRQ´(QDEOLQJ$OO 1'6$3 
6FKRROVZLWK9LUWXDO&ODVV5RRPVµ7KHSURMHFWLV 7KH2SHQ*RYHUQPHQW'DWD 2*' 3ODWIRUP,QGLD
SURSRVHGWREHLPSOHPHQWHGLQWKH3LORW6WDWHVRI KWWSVGDWDJRYLQ  KDV EHHQ VHWXS E\ WKH
$QGKUD 3UDGHVK *XMDUDW +DU\DQD +LPDFKDO 1DWLRQDO ,QIRUPDWLFV &HQWUH 1,&  LQ FRPSOLDQFH
3UDGHVK5DMDVWKDQ7DPLO1DGXDQG7ULSXUD ZLWK WKH 2SHQ 'DWD 3ROLF\ 1'6$3  RI ,QGLD 7KH
7KHWRWDOQXPEHURIWDUJHWHGVFKRROVLQ3KDVH², REMHFWLYHRIWKHSROLF\LVWRSURYLGHSURDFWLYHDFFHVV
DUHSOXV',(7DQ\FHQWUDOORFDWLRQVLQWKH WR*RYHUQPHQWRZQHGVKDUHDEOHGDWDDORQJZLWKLWV
GLVWULFW7KHSURMHFWZLOOHQDEOHWKHVFKRROWHDFKHUV XVDJH LQIRUPDWLRQ LQ RSHQPDFKLQH UHDGDEOH
WRUHDFKDWIDUORFDWLRQVZLWKRXWSK\VLFDOSUHVHQFH IRUPDWWKURXJKDZLGHDUHDRIQHWZRUNDFURVVWKH


 $QQXDO5HSRUW

IULHQGO\ LQWHUIDFH ZLWK G\QDPLFSXOO GRZQ PHQXV

VHDUFKEDVHGUHSRUWVVHFXUHGZHEDFFHVVEXOOHWLQ
ERDUGEDVHGRQ'XEOLQ&RUHPHWDGDWDVWDQGDUGV
DQG SDUDPHWULF  G\QDPLF UHSRUWV LQ H[SRUWDEOH
IRUPDW7KHSODWIRUPUHÁHFWVKRZLQQRYDWLYHXVHRI
LQIRUPDWLRQWHFKQRORJ\KDVOHGWRDSDUDGLJPVKLIW
LQ DFFRPPRGDWLQJ KXJH GDWD SRWHQWLDO RI WKH
FRXQWU\

FRXQWU\LQDSHULRGLFDOO\XSGDWHGPDQQHUZLWKLQWKH 7LOO GDWH 2*' ,QGLD KDV  RSHQ GDWD

IUDPHZRUN RI YDULRXV UHODWHG SROLFLHV UXOHV DQG UHVRXUFHVFDWDORJV&KLHI'DWD2IÀFHUV
DFWV RI WKH *RYHUQPHQW 'HYHORSHG XVLQJ 2SHQ 7KHVH GDWDVHW UHVRXUFHV DUH  PLOOLRQ WLPHV
6RXUFH 6WDFN WKH SURMHFW LV RQH RI WKH LQLWLDWLYHV YLHZHGKDYHEHHQGRZQORDGHGPLOOLRQWLPHV
XQGHU3LOODU ,QIRUPDWLRQIRU$OO RIWKH'LJLWDO,QGLD  GDWDVHWV $3,V DUH SURYLGHG ZKLFK DUH EHLQJ
LQLWLDWLYH DYDLOHG WKURXJK  $3, NH\ XVHUV 2*' LV
VWURQJO\ SURPRWHG WKURXJK 1HZVOHWWHUV 6RFLDO
,W IDFLOLWDWHV FRPPXQLW\ SDUWLFLSDWLRQ IRU IXUWKHU
PHGLD:RUNVKRSV&KDOOHQJHVDQGSDUWLFLSDWLRQLQ
GHYHORSPHQW RI WKH SURGXFW ZLWK 9LVXDOL]DWLRQV
'DWDPHHWVHWF
$3,V $OHUWV HWF ,W KDV DQ HDV\ WR XVH DQG XVHU


0LQLVWU\RI(OHFWURQLFV ,QIRUPDWLRQ7HFKQRORJ\ 0HLW<

$FKLHYHPHQWV VWUDWHJ\ 6RPH DSSOLFDWLRQV XVH LQWHUQDO

SHUIRUPDQFH PHDVXUHPHQW PHFKDQLVPV GHÀQHG
‡ )URP VW $SULO  WR WK 'HFHPEHU 
WKURXJK 6HUYLFH /HYHOV DQG .H\ 3HUIRUPDQFH
PRUHWKDQUHVRXUFHVFRQWULEXWHGLQ
,QGLFDWRUV .3,V  EXW WKHUH LV QR VWDQGDUG
&DWDORJVZLWK9LVXDOL]DWLRQVFUHDWHG
*RYHUQPHQWZLGHFULWHULRQRUPHWULFWRHYDOXDWHWKH
‡ *RYHUQPHQW 2SHQ 'DWD 8VH /LFHQVH ² ,QGLD LPSDFWRIDOOLQLWLDWLYHV,QYLHZRIWKHUDSLGJURZWKLQ
KDVEHHQIRUPXODWHGE\KLJKOHYHOFRPPLWWHH WKHQXPEHURIVHUYLFHVGHOLYHUHGWKURXJKHOHFWURQLF
‡ 7ZR ZRUNVKRSV KDYH DOVR EHHQ RUJDQL]HG IRU PHDQV LQ ,QGLD 0LQLVWU\ RI (OHFWURQLFV DQG
WKH&'2V ,QIRUPDWLRQ 7HFKQRORJ\ 0HLW<  DQG 1DWLRQDO
, Q I R U P D W L F V  & H Q W U H  1 , &   W K H  Q R G D O  , & 7
‡ %DVHGRQ2SHQ*RYHUQPHQW'DWDFDVHVWXG\D
RUJDQL]DWLRQ LGHQWLÀHG WKH QXPEHU RI HQGWRHQG
ERRNRQ'DWD'ULYHQ'HFLVLRQ0DNLQJKDVDOVR
HOHFWURQLF WUDQVDFWLRQV DV WKH EHVW LQGLFDWRU IRU
EHHQODXQFKHGLQ-XQH
PHDVXULQJ WKH UHDOWLPH SHUIRUPDQFH RI H
‡ ,WLVEHLQJSODQQHGWRRUJDQL]HD1DWLRQDOOHYHO *RYHUQDQFHVHUYLFHVLQWHUPVRIVHUYLFHGHOLYHU\WR
2SHQ *RYHUQPHQW 'DWD +DFNDWKRQ GXULQJ FLWL]HQV
'HFHPEHUWR0DUFK
0HLW< DQG 1,& KDYH GHYHORSHG H7DDO 85/
‡ /DXQFKRI&RPPXQLW\SRUWDOKWWSVFRPPXQLW\ KWWSHWDDOJRYLQ DV DQ HOHFWURQLF GDVKERDUG IRU
GDWDJRYLQ DQG HYHQW SRUWDO KWWSVHYHQW SURYLGLQJDUHDOWLPHDJJUHJDWHGYLHZRIH6HUYLFHV
GDWDJRYLQ EHLQJGHOLYHUHGDFURVVGLIIHUHQWVWDWHVDQGOHYHOVRI
‡ /DXQFK RI 2SHQ *RYHUQPHQW 'DWD 3RUWDO E\ JRYHUQPHQWH7DDOSURYLGHVDQDJJUHJDWHGYLHZRI
*RYHUQPHQW RI 6LNNLP KWWSVVLNNLP H7UDQVDFWLRQV SHUIRUPHG WKURXJK H*RYHUQDQFH
GDWDJRYLQ  DQG 6XUDW 0XQLFLSDO &RUSRUDWLRQ DSSOLFDWLRQVLPSOHPHQWHGLQFOXGLQJEXWQRWOLPLWHG
KWWSVVXUDWGDWDJRYLQ XVLQJ2*'6RIWZDUH WR WKH QDWLRQDOOHYHO SURMHFWV OLNH 'LJLWDO ,QGLD
DVD6HUYLFH 6DD6 PRGHO LQLWLDWLYHVDQG003VGHÀQHGXQGHUWKH3LOODUH
.UDQWL ² (OHFWURQLF 'HOLYHU\ RI 6HUYLFHV RI 'LJLWDO
 (OHFWURQLF7UDQVDFWLRQ$JJUHJDWLRQ  ,QGLD H7DDO DXWRPDWLFDOO\ SXOOV WKH HWUDQVDFWLRQ
$QDO\VLV/D\HU H7DDO FRXQWIURPWKHDSSOLFDWLRQVLQWHJUDWHGZLWKLWXVLQJ
$ ODUJH QXPEHU RI H*RYHUQDQFH LQLWLDWLYHV :HE6HUYLFHVWHFKQRORJ\
LQFOXGLQJ YDULRXV 0LVVLRQ 0RGH 3URMHFWV 003V  7KHSUHVHQWV\VWHPGHDOVZLWKTXDQWLWDWLYHDQDO\VLV
XQGHU H.UDQWL DUH EHLQJ LPSOHPHQWHG LQ WKH RQO\ZKHUHDVSODQLVDÁRDWWRGHYHORSH7DDOWR
FRXQWU\E\WKH&HQWUDODQG6WDWH*RYHUQPHQWVDQG DGGUHVVWKHTXDOLWDWLYHDVSHFWVRIVHUYLFHGHOLYHU\
RUJDQL]DWLRQV IRU HQVXULQJ HIÀFLHQW DIIRUGDEOH WKHUHE\ EULQJLQJ LQ WKH FRQFHSW RI ¶48$17,/,7<·
WUDQVSDUHQW DQG FRQYHQLHQW VHUYLFH GHOLYHU\ WR ZKLFK PHDQV ¶48$17,W\· ZLWK ¶TXD/,7<· ,Q H7DDO
FLWL]HQV 6HYHUDO RI WKHVH LQLWLDWLYHV KDYH QDWLRQDO  D V\VWHP LV EHLQJ GHYHORSHG IRU DVVLJQLQJ
LPSRUWDQFH DQG DUH LQFOXGHG LQ WKH FRXQWU\·V ,7 DSSURSULDWHZHLJKWDJHVIRUYDULRXVFDWHJRULHVRIH
6HUYLFHV 7R IDFLOLWDWH YLHZ RI H6HUYLFHV EHLQJ
GHOLYHUHGDFURVVWKHFRXQWU\H6HUYLFH'LUHFWRU\KDV
EHHQ GHYHORSHG XQGHU H7DDO  ,W SURYLGHV WKH
GHWDLOVRIH*RYHUQDQFHDSSOLFDWLRQGHOLYHULQJWKH


 $QQXDO5HSRUW

VHUYLFH VXFK DV QDPH RI WKH GHSDUWPHQW JRYHUQPHQW+RVSLWDOV(+RVSLWDODSSOLFDWLRQEXLOW

GHVFULSWLRQ RI VHUYLFH HWF DORQJ ZLWK WKH VSDWLDO XVLQJ RSHQ VRXUFH WHFKQRORJ\ DQG VWDQGDUGV
VSUHDGIRUDJLYHQVHUYLFH UHFRPPHQGHG E\ 0LQLVWU\ RI +HDOWK  )DPLO\
:HOIDUH 0R+):  (+RVSLWDO DSSOLFDWLRQ KDV 
$FKLHYHPHQWV
PRGXOHV ZKLFK DUH ORRVHO\ FRXSOHG DQG
‡ 1RRIVHUYLFHVLQWHJUDWHGDVRQGDWH LPSOHPHQWDEOH LQ SKDVH PDQQHU (+RVSLWDO LV DQ
‡ 1RRI&HQWUDO0LQLVWULHV'HSDUWPHQWV 2SHQ 6RXUFH EDVHG +0,6 DSSOLFDWLRQ VRIWZDUH
GHYHORSHGE\1,&
‡ 7RWDOQRRIH7UDQVDFWLRQV
$FKLHYHPHQWV
‡ 7RWDOQRRIH7UDQVDFWLRQVVLQFHVW$SULO
 ‡ (+RVSLWDO DSSOLFDWLRQ LV KRVWHG RQ 0HJK5DM
&ORXG
(+RVSLWDO3URMHFW
‡ KRVSLWDOVRQERDUGHGWKH2QOLQH5HJLVWUDWLRQ
+RQ·EOH 3ULPH 0LQLVWHU RI ,QGLD ODXQFKHG 2QOLQH
6\VWHP 256 
5HJLVWUDWLRQ6\VWHP 256 XQGHUH+RVSLWDOSURMHFW
GXULQJ 'LJLWDO ,QGLD :HHN 256 VHUYLFHV LQFOXGH ‡  ODNKV DSSRLQWPHQWV KDYH EHHQ WDNHQ
WDNLQJ RQOLQH DSSRLQWPHQW YLHZLQJ RI ODE UHSRUWV WKURXJK256
DQGFKHFNLQJRIVWDWXVRIEORRGDYDLODELOLW\LQEORRG -HHYDQ3UDPDDQ
EDQNV $SDUW IURP WKLV RQOLQH SD\PHQW KDV EHHQ
,QDELJUHOLHIWRRYHUDFURUHUHWLUHGHPSOR\HHVRI
IDFLOLWDWHG ZKHUHYHU DSSOLFDEOH 6R IDU WKHVH
&HQWUDO*RYHUQPHQW6WDWH*RYHUQPHQW368VHWF
VHUYLFHV KDYH EHHQ LPSOHPHQWHG LQ $,,06 1HZ
XQGHU -HHYDQ 3UDPDDQ D SHQVLRQHU FDQ QRZ
'HOKL 'U 50/ +RVSLWDO 1HZ 'HOKL 6SRUWV ,QMXU\
GLJLWDOO\ SURYLGH SURRI RI KLV H[LVWHQFH WR WKH
&HQWUH 6,& 6DIGDUMXQJ+RVSLWDO1HZ'HOKLDQG
DXWKRULWLHV IRU FRQWLQXLW\ RI SHQVLRQ HYHU\ \HDU
1,0+$16%HQJDOXUX
LQVWHDGRIUHTXLULQJWRSUHVHQWKLPVHOISK\VLFDOO\RU
(+RVSLWDOLVDLPHGDWLPSOHPHQWDWLRQRI+RVSLWDO WKURXJK D /LIH &HUWLÀFDWH LVVXHG E\ VSHFLÀHG
0DQDJHPHQW ,QIRUPDWLRQ 6\VWHP +,06  IRU DXWKRULWLHV7KLVIDFLOLW\KDVEHHQZLGHO\DFFHSWHG
LQWHUQDOZRUNÁRZRIKRVSLWDO7KHSDWLHQWLQWHUIDFHRI E\WKHSHQVLRQHUV1RZWKHSHQVLRQHUVPD\VXEPLW
WKH H+RVSLWDO KDV EHHQ IDFLOLWDWHG WKURXJK 256 $DGKDDU(QDEOHG%LRPHWULF'LJLWDO/LIH&HUWLÀFDWHV
ZKHUHVHUYLFHVUHODWHGWRSDWLHQWVZLOOEHGHOLYHUHG '/&  HYHQ IURP KRPH DOVR *XLGHOLQHV IRU RQ
HOHFWURQLFDOO\ ERDUGLQJ RI 3HQVLRQ 6DQFWLRQLQJ $XWKRULW\ DQG
(+RVSLWDO LV DYDLODEOH WR JRYHUQPHQW KRVSLWDOV 3HQVLRQ'LVEXUVLQJ$XWKRULW\$JHQFLHVKDYHEHHQ
WKURXJK 6RIWZDUH DV D 6HUYLFHV 6DD6  PRGHO DSSURYHGDQGDYDLODEOHRQWKHSRUWDO
+RVSLWDOV DUH UHOLHYHG IURP $SSOLFDWLRQ  6HUYHU ´-HHYDQ3UDPDDQµSRUWDOKDVEHHQLQDXJXUDWHGE\
0DQDJHPHQW DV H+RVSLWDO LV DYDLODEOH RQ FORXG WKH +RQ·EOH 3ULPH 0LQLVWHU RQ WK 1RYHPEHU
7KLVVLPSOLÀHGWKHRQERDUGLQJSURFHVVDQGPDVWHU 6LQFH1RYHPEHUSHQVLRQHUV
GDWDPDQDJHPHQWIRU+RVSLWDOV,WHQDEOHVVLQJOH KDYHDYDLOHGWKH-HHYDQ3UDPDDQVHUYLFHDERXW
LQWHUIDFH IRU 3DWLHQWV WKURXJK 2QOLQH 5HJLVWUDWLRQ /DNKV'/&VKDYHEHHQSURFHVVHGVXFFHVVIXOO\IRU
6\VWHP 256 IRUYDULRXVVHUYLFHVDQGDOVRFUHDWH FRQWLQXLW\ RI SHQVLRQ DQG UHPDLQLQJ DUH XQGHU
XQLIRUPLW\ RI H+RVSLWDO $SSOLFDWLRQ DFURVV WKH DOO SURFHVVLQJ 7KH 3HQVLRQ 6DQFWLRQLQJ $XWKRULW\


0LQLVWU\RI(OHFWURQLFV ,QIRUPDWLRQ7HFKQRORJ\ 0HLW<

DOUHDG\RQERDUGHGRQWKHV\VWHPLQFOXGHV&HQWUDO ‡  6WDWH *RYHUQPHQW KDYH VWDUWHG XVLQJ WKH

*RYHUQPHQW 5DLOZD\ GHIHQFH (3)2 &03)2 V\VWHP
21*&3RUW7UXVWPRUHWKDQVWDWHV*RYHUQPHQWV
‡ 0LQLVWU\ RI 6NLOO 'HYHORSPHQW DQG 7HODQJDQD
HWF DQG PDMRU 3HQVLRQ 'LVEXUVLQJ $JHQFLHV DUH
6WDWH KDV UHTXHVWHG IRU ,PSOHPHQWDWLRQ DQG
%DQNV7UHDVXULHV3RVW2IÀFH(3)221*&HWF
PRQLWRULQJRIDWWHQGDQFHRIWUDLQHHVVWXGHQWV
%LRPHWULF$WWHQGDQFH6\VWHP %$6 
35$*$7,9LGHR&RQIHUHQFLQJ
²$1DWLRQDO5ROORXW
$VDSDUWRI'LJLWDO,QGLDSURJUDPH*RYHUQDQFH
$VSDUWRIWKH´'LJLWDO,QGLDµSURJUDPRI*RYHUQPHQW
5HIRUPLQJ *RYHUQPHQW WKURXJK 7HFKQRORJ\
RI ,QGLD 0HLW<1,&8,'$, LPSOHPHQWHG $DGKDDU
+RQ·EOH 3ULPH 0LQLVWHU RI ,QGLD ODXQFKHG KLV
HQDEOHG%LRPHWULF$WWHQGDQFH6\VWHP %$6 LQDOO
DPELWLRXVPXOWLSXUSRVHDQGPXOWLPRGDOSODWIRUP
&HQWUDO *RYHUQPHQW 2IÀFHV LQ 'HOKL DQG LV QRZ
35$*$7, 3UR$FWLYH *RYHUQDQFH DQG 7LPHO\
EHLQJH[WHQGHGWRRIÀFHVRIDOOVWDWHJRYHUQPHQWV
,PSOHPHQWDWLRQ RQWK0DUFK35$*$7,LVD
7KH V\VWHP HQDEOHV DQ HPSOR\HH WR UHJLVWHU XQLTXHLQWHJUDWLQJDQGLQWHUDFWLYHSODWIRUPWKURXJK
DWWHQGDQFHE\VLPSO\SUHVHQWLQJKLVKHUELRPHWULF ZKLFK +RQ·EOH 3ULPH 0LQLVWHU FOHDU KXUGOHV LQ
)LQJHU3ULQW,ULV DQGLVDXWKHQWLFDWHGRQOLQHZLWK LPSOHPHQWDWLRQ RI YDULRXV JRYHUQPHQW VFKHPHV
WKHLU ELRPHWULF DWWULEXWHV VWRUHG ZLWK 8,'$,  7KH JULHYDQFHV VWDWH DQG FHQWUDO UHODWHG SURMHFWV 
V\VWHP DOORZV DQ\RQH DXWKHQWLFDWHG WR WUDFN WKH SURJDPPHV E\ GLUHFWO\ LQWHUDFWLQJ ZLWK DOO VWDNH
HPSOR\HH DWWHQGDQFH GHWDLOV LQ JRYHUQPHQW KROGHUV WKURXJK 9LGHRFRQIHUHQFLQJ RQ D VLQJOH
RUJDQLVDWLRQVWKDWLVYLVLEOHRQDWWHQGDQFHJRYLQ SODWIRUP
7KH&ORXGEDVHGVRIWZDUHLVLQVWDOOHGDQGRSHUDWHG 35$*$7,LVDWRROWKURXJKZKLFK3ULPH0LQLVWHULV
IURP1,&1DWLRQDO'DWD&HQWUHDQG8,'$, DEOH WR GLVFXVV WKH LVVXHV ZLWK WKH FRQFHUQHG
&HQWUDODQG6WDWHRIÀFLDOVZLWKIXOOLQIRUPDWLRQDQG
$FKLHYHPHQWV
ODWHVWYLVXDOVRIWKHJURXQGOHYHOVLWXDWLRQ6XFKDQ
‡ %LRPHWULF$WWHQGDQFHKDVEHHQLPSOHPHQWHGLQ HIIRUW KDV QHYHU EHHQ PDGH LQ ,QGLD ,W LV DOVR DQ
 RUJDQLVDWLRQV FRYHULQJ  ODNK LQQRYDWLYH SURMHFW LQ HJRYHUQDQFH DQG JRRG
HPSOR\HHV LQFOXGHVERWK&HQWUDODQG6WDWHV  JRYHUQDQFH3ULPH0LQLVWHUZDVHTXDOO\NHHQWRVHH
DVRQWK0DUFK WKDW SURJUDPPHV DQG SURMHFWV ODXQFKHG E\ WKH
&HQWUDO DQG 6WDWH *RYHUQPHQW V  DUH PRQLWRUHG
SURSHUO\ IRU WLPHO\ LPSOHPHQWDWLRQ DQG GHVLUHG
RXWFRPH : LWK WKDW VSLULW DQG IRU KROLVWLF
GHYHORSPHQW RI WKH FRXQWU\ LW ZDV DOVR IHOW
QHFHVVDU\WRIDFLOLWDWHIURPWKH8QLRQ*RYHUQPHQW
OHYHOWKHSURMHFWVRIWKH6WDWHV
8QGHU 35$*$7,  +RQ·EOH 3ULPH 0LQLVWHU KROG
YLGHRFRQIHUHQFH PHHWLQJ ZLWK 6HFUHWDULHV RI
*RYHUQPHQWRI ,QGLD&KLHI6HFUHWDULHV RI YDULRXV
VWDWHV87V DQG RWKHU VWDNH KROGHUV DW QDWLRQDO 
,QWHUQDWLRQDO OHYHO RQ IRXUWK :HGQHVGD\ RI HYHU\


 $QQXDO5HSRUW

PRQWK WR GLVFXVV SURJUHVV RI LPSRUWDQW QDWLRQDO 'LJLWL]H,QGLD3ODWIRUP ',3

SURMHFWV 1,& KDV EHHQ RUJDQLVLQJ 35$*$7,
'LJLWL]H ,QGLD 3ODWIRUP ',3  LV DQ LQLWLDWLYH RI WKH
9LGHRFRQIHUHQFLQJ VHVVLRQV IRU +RQ·EOH 3ULPH
*RYHUQPHQW RI ,QGLD XQGHU WKH 'LJLWDO ,QGLD
0LQLVWHUVRI,QGLD$QDYHUDJHRIDURXQGWR
3URJUDPPH WR SURYLGH GLJLWL]DWLRQ VHUYLFHV IRU
ORFDWLRQVSDUWLFLSDWHLQWKH35$*$7,9&VHVVLRQV
VFDQQHGGRFXPHQWLPDJHVRUSK\VLFDOGRFXPHQWV
7KLVSURJUDPPHKDVSURYHGHIIHFWLYHLQDGGUHVVLQJ IRUDQ\RUJDQL]DWLRQ7KHDLPLVWRGLJLWL]HDQGPDNH
DQG UHVROYLQJ LVVXHV E\ EULQJLQJ GRZQ WKH LQWHU XVDEOHDOOWKHH[LVWLQJFRQWHQWLQGLIIHUHQWIRUPDWV
GHSDUWPHQWDO FRPPXQLFDWLRQ JDS DQG WKXV DQG PHGLD ODQJXDJHV GLJLWL]H DQG FUHDWH GDWD
PLQLPL]LQJ WKH WLPH WDNHQ IRU LPSOHPHQWDWLRQ RI H[WUDFWVIRUGRFXPHQWPDQDJHPHQW,7DSSOLFDWLRQV
SURMHFWVDQGVFKHPHV DQG UHFRUGV PDQDJHPHQW 7KLV SODWIRUP ZDV
ODXQFKHGLQ$XJXVWXQGHU'LJLWDO,QGLD
7RWDO  35$*$7, VHVVLRQV KDG EHHQ FKDLUHG E\
+RQ·EOH3ULPH0LQLVWHUWLOOQRZ'XULQJWRWDO 0DLQREMHFWLYHRIWKLVSURMHFWWRSURYLGHDQHQGWR
35$*$7, VHVVLRQV KDV EHHQ FRQGXFWHG RQ WK HQGZRUNÁRZEDVHG,7IUDPHZRUNIRUGLJLWL]DWLRQRI
0DUFK  QG $SULO  WK 0D\ WK -XQHWK *RYHUQPHQWUHFRUGVWRHQKDQFHVHUYLFHGHOLYHU\WR
$XJXVWWK6HSWHPEHUWK1RYHPEHUDQGWK WKH &LWL]HQ DQG WR HPSRZHU QXPHURXV VHOI
'HFHPEHU  'XULQJ  WRWDO  35$*$7, L G H Q W L À H G  Y R O X Q W H H U V   S D U W W L P H  Z R U N H U V 
VHVVLRQV KDV EHHQ FRQGXFWHG RQ WK -DQXDU\ KRXVHZLYHVVWXGHQWVDQGJHQHUDOSXEOLFZKRDGG
WK)HEUXDU\ UG0DUFKWK0D\WK-XQH VPDOOSRUWLRQVRIWKHLUFRQWULEXWLRQWKURXJKFURZG
  W K  $ X J X V W     W K  6 H S W H P E H U  D Q G    W K VRXUFLQJPHFKDQLVPWRDFKLHYHWKHJUHDWHUUHVXOW
2FWREHUQG)HEUXDU\
',3SURYLGHVDQLQQRYDWLYHVROXWLRQE\FRPELQLQJ


0LQLVWU\RI(OHFWURQLFV ,QIRUPDWLRQ7HFKQRORJ\ 0HLW<

RQFHWKHFRQVWUXFWLRQRIWRLOHWLVUHSRUWHGRQRQOLQH
V\VWHP%HQHÀFLDU\FDQUHYHUWEDFNUHSO\WKURXJK
606 RQ ZKHWKHU WRLOHW KDV EHHQ FRQVWUXFWHG LQ
KLVKHUKRXVH
6%0* GDVKERDUG KDV DOVR EHHQ GHYHORSHG WR
PRQLWRU WKH SURJUDPPH LPSOHPHQWDWLRQ DW
PDFKLQH LQWHOOLJHQFH DQG D FRVW HIIHFWLYH FURZG 1DWLRQDO6WDWHDQG'LVWULFWOHYHOSURJUHVVFRYHUDJH
VRXUFLQJPRGHO,WIHDWXUHVDVHFXUHDQGDXWRPDWHG LQJUDSKLFDOYLHZZLWKYDULRXV.3,VIRUWUDFNLQJ,++/
SODWIRUPIRUSURFHVVLQJDQGH[WUDFWLQJUHOHYDQWGDWD DQG2')VWDWXV7KLVDOVRVKRZVWKHSURJUHVVRIWKH
IURPGRFXPHQWLPDJHVLQDIRUPDWWKDWLVXVDEOHIRU SURJUDPRQWKHLQWHUDFWLYHPDSVVLQFHLWVODXQFKRQ
PHWDGDWDWDJJLQJ,7DSSOLFDWLRQSURFHVVLQJDQG 2FWREHU0RUHWKDQFURUHKRXVHKROGV
DQDO\VLV KDYHUHFHLYHGWRLOHWVVLQFHWKHODXQFKRISURJUDP
DQGYLOODJHVKDYHEHFRPH2')DVRQWK
$FKLHYHPHQWV
6HS
‡ $ERXW  FURUHV 6QLSSHWV WH[WV KDYH EHHQ
$ 0RELOH DSSOLFDWLRQ 6ZDFKK$SS DQG PRELOH
RUJDQL]HG E\ WKH SODWIRUP WKURXJK FURZG
WHFKQRORJ\ LQ 6%0*  KDV EHHQ GHYHORSHG IRU
VRXUFLQJE\FRQWULEXWRUV
WUDFNLQJWKHFXUUHQWVDQLWDWLRQVWDWXVXSWRYLOODJH
‡ ODNKGRFXPHQWVKDYHEHHQGLJLWL]HG OHYHODORQJZLWKGHWDLOVRIEHQHÀFLDULHV0RELOH$SS
6ZDFKK%KDUDW0LVVLRQ²*UDPLQ LVXVHGIRUWUDFNLQJUHDOWLPHVDQLWDWLRQFRYHUDJHLQ
SHUFHQWDJH QXPEHU RI RSHQ GHIHFDWLRQ IUHH
1,&KDVGHYHORSHGDQRQOLQHPRQLWRULQJV\VWHPIRU YLOODJHVDQGOLVWRIEHQHÀFLDULHVLQHDFKYLOODJH7KLV
6ZDFKK %KDUDW 0LVVLRQ ² *UDPLQ 6%0*  $SSLVDOVREHLQJXVHGWRUDWHWKHYLOODJHEDVHGRQ
+RXVHKROG OHYHO GDWD ZLWK UHVSHFW WR VDQLWDWLRQ FOHDQOLQHVV DQG 6/:0 LQGH[ GHYHORSHG E\ WKH
IDFLOLWLHV RI DOO *UDP 3DQFKD\DWV LQ WKH FRXQWU\ LV 0LQLVWU\ RI 'ULQNLQJ :DWHU DQG 6DQLWDWLRQ 7KLV
PDGH DYDLODEOH RQ WKH 0,6 E\ WKH 6WDWHV RQ WKH PRELOHDSSLVFDSDEOHRIUXQQLQJRQDOOWKHPRELOHV
EDVLV RI WKH %DVHOLQH 6XUYH\  7KH PDLQ $QGURLG:LQGRZVL26EDVHGGHYLFHV 
IRFXVRIWKHV\VWHPLVWRWUDFNWKHWRLOHWFRQVWUXFWLRQ
DQG XVDJH WKURXJK FUHDWLRQ RI 2SHQ 'HIHFDWLRQ 606DQGHPDLODXWRPDWLRQLVDOVRXVHGWRJHQHUDWH
)UHH 2')  &RPPXQLWLHV 7KH 0,6 LV DOVR EHLQJ GDLO\EDVLV606DOHUWVDQGVHQWWR0LQLVWU\RIÀFLDOV
XSJUDGHG WR HQDEOH UHSRUWLQJ RI FUHDWLRQ RI 2') IRU PRQLWRULQJ RI GDLO\ 035 UHSRUWHG LQGLYLGXDO
FRPPXQLWLHV DQG WKHLU VXVWHQDQFH DV ZHOO 7KH KRXVHKROG·VGDWDDORQJZLWKQXPEHURI,++/WRLOHW
V\VWHP LV WKH RQO\ WRRO WKDW HQDEOHV WKH SKRWRJUDSKV XSORDGHG RI ,++/ WRLOHW FRQVWUXFWHG
&HQWUH 0LVVLRQ +4V  6WDWH 'LVWULFW %ORFN DQG WKURXJK P6%0 DSS  7KH V\VWHP IDFLOLWDWHV WKH
*UDP 3DQFKD\DWV WR PRQLWRU WKH SURJUHVV RI XSORDGLQJ RI SKRWRJUDSKV RI WRLOHWV XVLQJ PRELOH
FRQVWUXFWLRQRIWRLOHWVIRU,QGLYLGXDOKRXVHKROGDQG DSSOLFDWLRQ ERWKRQOLQHDQGRIÁLQHPRGHDORQJZLWK
FRPPXQLW\VDQLWDU\FRPSOH[HV ODWLWXGH²ORQJLWXGH XVDJHRIWRLOHWV 6RIDUPRUH
WKDQ  ODNKV SKRWRJUDSKV RI WRLOHWV FRQVWUXFWHG
6%0* 0,6 FDSWXUHV WKH KRXVHKROG GDWD RI RYHU KDYHEHHQXSORDGHGE\PRELOHXVHUVXVLQJPRELOH
FURUHKRXVHKROGVDVSHUWKHEDVHOLQHVXUYH\ DSSOLFDWLRQV 606 EDVHG JULHYDQFH UHDGGUHVVDO
,QGLYLGXDOPRELOHQXPEHULVXVHGWRJHQHUDWH606 DQG FLWL]HQ LQIRUPDWLRQ VHUYLFHV DUH DYDLODEOH IRU


 $QQXDO5HSRUW

FLWL]HQV WR ORGJH JULHYDQFHV VHHN EHQHÀFLDU\ GHWDLOV $DGKDDU 0*15(*$ -RE &DUG QXPEHU
IHHGEDFN FDSWXUH GDWD RQ WRLOHW XVDJH DQG 6%01XPEHU%DQNDFFRXQWGHWDLOVHWFDOOWKHVH
SURPRWHGHPDQGJHQHUDWLRQ GHWDLOV DUH YHULÀHG E\ WKHLU UHVSHFWLYH VRXUFH
G D W D E D V H V   L  H   8 , '$ ,   0 * 1 5 ( * $   6 % 0 
3ULPH0LQLVWHU$ZDDV<RMDQD
3)06%DQNVUHVSHFWLYHO\
7KLV V\VWHP KDV EHHQ UHIRUPDWWHG IRU WKH MXVW
2QWKH30$<*PJRYHUQDQFHSODWIRUPNQRZQDV
ODXQFKHG 2QWK1RYHPEHU 3ULPH0LQLVWHU
$ZDDV$SS *HRWDJJHG SKRWRJUDSKV RI ROG
$ZDDV<RMDQD*UDPLQIURPWKHHDUOLHUHQGWRHQG
NXWFFKDKRXVHVDQGQHZVLWHRIFRQVWUXFWLRQZLWK
:RUNÁRZ EDVHG V\VWHP GHYHORSHG E\ 1,& IRU
WKH %HQHÀFLDU\ VWDQGLQJ LQ IURQW LV FDSWXUHG LQ
HDUOLHU,QGLUD$ZDDV<RMDQD7KHIXQGDPHQWDOSKDVH
RQOLQHRIÁLQHPRGHZKLFKLVWKHQYHULÀHGE\%'2
VKLIWIURPHDUOLHUVFKHPHLVWRLGHQWLI\EHQHÀFLDULHV
RIÀFH RQ $ZDDV6RIW 2QFH DERYH H[HUFLVH LV
RQWKHEDVHVRI6RFLR(FRQRPLF&HQVXV 6(&&
FRPSOHWHG HVDQFWLRQV DUH JHQHUDWHG E\ 'LVWULFW
  2Q WKH 30$<* HJRYHUQDQFH SODWIRUP
OHYHO DXWKRULWLHV EDVHG RQ 3ULRULW\ VHW E\ *UDP
NQRZQ DV $ZDDV6RIW *UDP 3DQFKD\DW ZLVH DQG
6DEKDRQFHWKHEHQHÀFLDU\DFFRXQWVDUHYHULÀHG
6RFLDO &DWHJRU\ ZLVH ZDLW OLVW LV SUHSDUHG IURP
HSD\PHQW IRU VW LQVWDOOPHQW LV LQLWLDWHG E\
6RFLR(FRQRPLF FHQVXV GDWD DW *3%ORFN OHYHO
FRPSHWHQW DXWKRULWLHV DV GHÀQHG E\ 6WDWH $OO
ZKLFK LV YHULÀHG E\ 'LVWULFW OHYHO DSSHOODWH
UHPDLQLQJ LQVWDOOPHQWV DUH SDLG RQO\ DIWHU WKH
FRPPLWWHH
LQVSHFWLRQRIWKHKRXVHXQGHUFRQVWUXFWLRQXVLQJ
$OOYHULÀHGKRXVHKROGVHOLJLEOHIRUDVVLVWDQFHXQGHU $ZDDV$SS DQG LWV YHULÀFDWLRQ E\ %'2 RIÀFH
30$<* DUH WKHQ UHJLVWHUHG ZLWK WKHLU SHUVRQDO $ZDDV6RIW

)LJ6%0'DVKERDUG


0LQLVWU\RI(OHFWURQLFV ,QIRUPDWLRQ7HFKQRORJ\ 0HLW<

3URMHFW+LJKOLJKWVDQGDZDUGV $ZDDV6RIWDQG$ZDDV$SSDVWKHLUHJRYPJRY
WRROIRULPSOHPHQWDWLRQ
L  ,Q ÀQDQFLDO <HDU  DSSUR[  &URUH
UXSHHVZHUHWUDQVIHUUHGGLUHFWO\WR%HQHÀFLDULHV· LY  $ZDDV$SSLVKRVWHGRQ*RRJOHSOD\VWRUHKDV
DFFRXQW XVLQJ $ZDDV6RIW·V HOHFWURQLF IXQG JRW DURXQG  GRZQORDGV LQ YHU\ OHVV
PDQDJHPHQWV\VWHP SHULRGRIWLPHDQGLWLVUDWHGDVRXW
LL  ,Q FXUUHQW ÀQDQFLDO \HDU DSSUR[  &URUH Y  1,& WHDP·V DFKLHYHPHQWV ZHUH UHFRJQL]HG
UXSHHV KDYH EHHQ WUDQVIHUUHG WLOO 1RYHPEHU DQGWKH\ZHUHIHOLFLWDWHGRQWKRI$SULO
 E\ WKHQ 0LQLVWHU RI 5XUDO 'HYHORSPHQW DW
9LJ\DQ %KDYDQ DQG $ZDDV$SS ZDV IRUPDOO\
LLL  $SDUWIURPÁDJVKLSSURJUDP0R5'LH30$<*
ODXQFKHG
 RWKHU 6WDWH 5XUDO +RXVLQJ VFKHPHV XVH


 $QQXDO5HSRUW

:HEEDVHG&RXQVHOOLQJ ZHUHXVHGIRUFKRRVLQJWKHLQVWLWXWHVDQGFRXUVHV
DQG DOORFDWLQJ WKH VHDWV VKRZV WKH FRPSOH[LW\ RI
7KHLGHDRI:HE%DVHG&RXQVHOOLQJIRUDGPLVVLRQ
-R6$$VRIWZDUH
ZDV HYROYHG ÀUVW WLPH LQ  ZKHQ 0LQLVWU\ RI
+XPDQ5HVRXUFH'HYHORSPHQWWRRNDQLQQRYDWLYH ,QWHJUDWHG7UDFN&KLOGSRUWDO
VWHSDQGGHFLGHGWRLPSOHPHQWRQOLQHRIIFDPSXV
7KH,QWHJUDWHG7UDFN&KLOGSRUWDOSURYLGHVDYLUWXDO
DQGRQFDPSXVFRXQVHOOLQJIRUDGPLVVLRQVLQ1,7V
VSDFH IRU DOO VWDNHKROGHUV  ,&36 ERGLHV ZKLFK
7KHVH DGPLVVLRQV ZHUH EDVHG RQ $,(((
LQFOXGH0LQLVWU\6WDWH&KLOG3URWHFWLRQ$XWKRULWLHV
H[DPLQDWLRQFRQGXFWHGE\&%6(HYHU\\HDU
'LVWULFW &KLOG 3URWHFWLRQ 8QLWV &KLOG &DUH
,QWKH\HDUDURXQGLQVWLWXWHV RIIHULQJ ,QVWLWXWLRQV &&,V  3ROLFH 6WDWLRQV &KLOG :HOIDUH
(QJLQHHULQJ 0HGLFDO +RWHO 0DQDJHPHQW &RPPLWWHHV &:&V  -XYHQLOH -XVWLFH %RDUGV
8QLYHUVLW\8*DQG3*FRXUVHHWFDQG'LSORPDDQG --%V HWFLQWKH6WDWH87V,WDOVRSURYLGHVD
,7, FRXUVHV  SDUWLFLSDWHG LQ  HFRXQVHOOLQJ QHWZRUNLQJ V\VWHP DPRQJVW DOO WKH VWDNHKROGHUV
SURMHFWV 2YHU  ODNKV VHDWV ZHUH RIIHUHG XQGHU DQG FLWL]HQV WR IDFLOLWDWH WUDFNLQJ RI D &KLOG LQ
YDULRXV UHVHUYDWLRQ FDWHJRULHV $ WRWDO RI  ODNK GLVWUHVV ,W UHTXLUHV GDWD HQWU\ DQG XSGDWLQJ DW
FDQGLGDWHV DSSHDUHG  UHJLVWHUHG DQG RYHU  YDULRXVOHYHOVVXFKDV3ROLFHVWDWLRQV&KLOG&DUH
ZHUHDOORWWHG,QWKHJRYHUQPHQWLQVWLWXWLRQVSLFWXUH ,QVWLWXWLRQV &&,V +RPHV6KHOWHUV&KLOG:HOIDUH
ZDV PXFK EHWWHU ZLWK DSSUR[LPDWHO\  &RPPLWWHHVDQG-XYHQLOH-XVWLFH%RDUGVHWF
JRYHUQPHQW VHDWV ZHUH ÀOOHG ,Q -RLQW 6HDW
7KH´7UDFN&KLOGµV\VWHPKROGVDGDWDEDVHRI
$OORFDWLRQ IRU ,,7V DQG 1,7V HWF  GLIIHUHQW UDQNV


0LQLVWU\RI(OHFWURQLFV ,QIRUPDWLRQ7HFKQRORJ\ 0HLW<

ODFVRI´0LVVLQJµ ODFVRI´)RXQGµ&KLOGUHQ WKDWKHVKRXOGDSSO\WRPDLQWDLQVRLOKHDOWKLQWKH

$URXQG  ODFV ´0LVVLQJµ FKLOGUHQ FRXOG EH ORQJ UXQ 6R IDU WRWDO  VDPSOHV DUH
PDWFKHGWUDFHG RXW VR IDU LQ WKH V\VWHP ,W DOVR UHJLVWHUHG DQG  7HVW UHVXOWV DUH HQWHUHG
KROGV WKH GDWDEDVH RI  ODFV RI YXOQHUDEOH FRYHULQJ  IDUPHUV 7RWDO 
FKLOGUHQOLYLQJDWYDULRXV&&,V6RIDUQRRI QXPEHUVRIFDUGVDUHLVVXHGWLOOGDWH
3ROLFH6WDWLRQV&&,VDUHXSORDGLQJGDWDLQWKH
3XEOLF)LQDQFLDO0DQDJHPHQW6\VWHP
V\VWHP %DVHGRQ(QWU\WLPHDQG'DWH5DQJH
3)06
WR
7KH3)06 3XEOLF)LQDQFLDO0DQDJHPHQW6\VWHP 
2QOLQH1*23URSRVDOSURFHVVLQJDQG
ZKLFKZDVHDUOLHUNQRZQDV&3606 &HQWUDO3ODQ
7UDFNLQJ6\VWHP
6FKHPH0RQLWRULQJ6\VWHP LVDZHEEDVHGRQOLQH
7KH DSSOLFDWLRQ IRU RQOLQH DSSOLFDWLRQ RI DOO VL[ VRIWZDUH DSSOLFDWLRQ EHLQJ LPSOHPHQWHG E\ WKH
VFKHPHVRI0R6-(ZDVGHVLJQHGDQGGHYHORSHG 2IÀFHRIWKH&RQWUROOHU*HQHUDORI$FFRXQWV &*$ 
VRDVWRIDFLOLWDWHWKH1*2VZRUNLQJIRU'R6-(DQG ZLWK 1,& DV D WHFKQRORJ\ SDUWQHU 7KH SULPDU\
'(3:'6FKHPHVFDQVXEPLWWKHLUSURSRVDORQOLQH REMHFWLYH RI 3)06 LV WR IDFLOLWDWH VRXQG 3XEOLF
WKHSURSRVDOVWKXVUHFHLYHGDUHEHLQJSURFHVVHG )LQDQFLDO 0DQDJHPHQW 6\VWHP IRU *RYW 2I ,QGLD
RQ OLQH DW YDULRXV OHYHO RI JRYHUQDQFH LH 'LVWULFW *R,  E\ HVWDEOLVKLQJ D FRPSUHKHQVLYH SD\PHQW
6WDWH'LUHFWRUDWH6WDWH6HFUHWDULDW&HQWUDO0LQLVWU\ UHFHLSW  DFFRXQWLQJ QHWZRUN 3)06 SURYLGHV
DV SHU WKHLU VSHFLÀF UROH LQ WKH DSSOLFDWLRQ YDULRXV VWDNHKROGHUV ZLWK D UHDO WLPH UHOLDEOH 
3UHVHQWDWLRQV DQG 'HPR WR WKH 0LQLVWULHV PHDQLQJIXO0,6DQGDQHIIHFWLYH'HFLVLRQVXSSRUW
'HSDUWPHQWV JLYHQ $FWLYH KHOSGHVN VXSSRUW V\VWHP,WLVQRWHZRUWK\WKDW3)06PDNHVDGLUHFW 
SURYLGHG+DQG·VRQ7UDLQLQJWKRXJK9&WR6WDWH VLJQLÀFDQWFRQWULEXWLRQWRWKH'LJLWDO,QGLDLQLWLDWLYH
:HEVHUYLFHVIRU,QWHJUDWLRQZLWK1*2363RUWDOIRU RI*R,E\HQDEOLQJHOHFWURQLFSD\PHQWDQGUHFHLSWV
1*28QLTXH,'YHULÀFDWLRQ IRU0LQLVWULHV'HSDUWPHQWVLQ*R,3)06LVXQLTXH
LQ WKH VHQVH WKDW WKH ÀQDQFLDO UHSRUWLQJ DQG WKH
0DQXDO6FDYHQJHU6XUYH\LQVWDWXWRU\
LPSOHPHQWDWLRQ RI WKH VFKHPH JR VLPXOWDQHRXVO\
WRZQVDQGUXUDO$UHD
GXHWRLWVLQWHUIDFHZLWKWKH%DQNV3)06KDVVHFXUH
0DQXDO 6FDYHQJHU 6XUYH\ LQ VWDWXWRU\ WRZQV DQG LQWHJUDWLRQZLWKDOOWKHPDMRUEDQNVIRUH[FKDQJHRI
UXUDO$UHDGHVLJQHGDQGGHYHORSHGIRUFDPSOHYHO GDWD ERWK ZD\V (OHFWURQLF SD\PHQW LQWR WKH
DSSOLFDWLRQ DQG 0,6 DSSOLFDWLRQ WR FDUU\ RXW WKH DFFRXQWV RI DJHQFLHV DQG EHQHÀFLDULHV DOVR KDV
VXUYH\LQVWDWXWRU\WRZQVRI,QGLDZDVLPSOHPHQWHG EHHQ VXFFHVVIXOO\ LPSOHPHQWHG (OHFWURQLF
7UDLQLQJZHUHSURYLGHGWRWKHPDVWHUWUDLQHUVIURP SD\PHQWLVGRQHIRUDFFRXQWVKROGHUVRI%DQNVDV
WKH6WDWHV87VZHEOHDUQLQJVHVVLRQFUHDWHGIRUWKH ZHOODV3RVW2IÀFHV
XVHUVLQWKHÀHOGLQDGGLWLRQDXGLRYLGHRYHUVLRQRI
3UHVHQW6WDWXV
WKHZHEOHDUQLQJVHVVLRQKRVWHGRQWKH:HEVLWH
$ 6RPHRIWKHPDMRUDUHDVLQZKLFKGHYHORSPHQW
 6RLO +HDOWK &DUG KWWSVRLOKHDOWK
KDVEHHQGRQH PDGHRSHUDWLRQDOLQ3)06DUH
GDFJRYLQ
DVXQGHU
$ 6+& LV PHDQW WR JLYH HDFK IDUPHU VRLO QXWULHQW
 L  3D\PHQW 5HFHLSW  $FFRXQWLQJ RI DOO *R,
VWDWXVRIKLVKROGLQJDQGDGYLFHKLPRQWKHGRVDJH
WUDQVDFWLRQV 3ODQ 1RQ3ODQ 
RIIHUWLOL]HUVDQGDOVRWKHQHHGHGVRLODPHQGPHQWV


 $QQXDO5HSRUW

LL  )XQG )ORZ WUDFNLQJ RI  *R, VFKHPHV 7KHSURGXFWLVEXLOWDVVLQJOHUHXVDEOHV\VWHPE\

,PSOHPHQWLQJ $JHQF\ 5HJLVWUDWLRQ ,W·V EULQJLQJ WRJHWKHU LQGHSHQGHQW IXQFWLRQV DQG
)XQG0DQDJHPHQW $FFRXQWLQJ V\VWHPV XQGHU D VLQJOH IUDPHZRUN WR HQKDQFH
WUDQVSDUHQF\ LQFUHDVH DFFRXQWDELOLW\ DQG
 LLL  'LUHFW%HQHÀW7UDQVIHU '%7
WUDQVIRUPWKHJRYHUQPHQWZRUNFXOWXUHDQGHWKLFV,W
 LY  1RQ7D[5HFHLSW3RUWDO 1753 FRPSULVHVRIIROORZLQJDSSOLFDWLRQV
 Y  ,QWHJUDWLRQ ZLWK ([WHUQDO V\VWHPV YL] L  )LOH0DQDJHPHQW6\VWHP H)LOH 
%DQNV5%,,QGLD3RVW13&,8,'$,6WDWH
LL  .QRZOHGJH0DQDJHPHQW6\VWHP .06 
7UHDVXULHV YDULRXV RWKHU 0,6 DSSOLFDWLRQV
HJ15(*$6RIW$ZDV6RIW163HWF LLL  /HDYH0DQDJHPHQW6\VWHP H/HDYH 
 YL  5HSRUWV 'DWDEDVH $GPLQLVWUDWLRQ 0DVWHU LY  7RXU 0DQDJHPHQW 6\VWHP H7RXU  DXWRPDWHV
'DWD0DQDJHPHQW6HUYHUV$GPLQLVWUDWLRQ HPSOR\HHWRXUSURJUDPPHV
7HVWLQJ 7HFKQLFDO GRFXPHQWDWLRQ 8VHU
Y  3HUVRQQHO ,QIRUPDWLRQ 0DQDJHPHQW 6\VWHP
VXSSRUWHWF
3,06 
% 'DWDVWDWLVWLFVWLOOGDWH
YL  &ROODERUDWLRQDQG0HVVDJLQJ6HUYLFHV &$06
‡ 7RWDO$JHQFLHV5HJLVWHUHG²/DNKV
YLL  0,6 5HSRUWV 0DQDJHPHQW ,QIRUPDWLRQ
‡ 7RWDO%HQHÀFLDULHVUHJLVWHUHG²FURUH 6\VWHP
‡ 7RWDODPRXQWRIVDQFWLRQVURXWHGWKUX3)06² YLLL 5HFRUGV0DQDJHPHQW6\VWHP 506
C&URUH
L[  &,758( &LWL]HQ,QWHUIDFH 
‡ 7RWDO%DQNV 1DWLRQDOLVHG3ULYDWH
[  6 P D U W  3H U I R U P D Q F H  $ S S U D L V D O  5 H S R U W
5HJLRQDO 5XUDO %DQNV &RRS EDQNV  DQG
5HFRUGLQJ2QOLQH:LQGRZ 63$552:
5%,  ,QWHJUDWHG ZLWK 3)06 ZLWK FRPSOHWH
DXWRPDWLRQ [L  3 U R S H U W \  5 H W X U Q  , Q I R U P D W L R Q  6 \ V W H P
0DQDJHPHQW 35,60 
‡ $PRXQWRIH3D\PHQWVC&URUH
$VRQGDWHH2IÀFHKDVEHHQLPSOHPHQWHGLQ
‡ $PRXQWRIHSD\PHQWVIRU,QWUD*RYW$GYLFHV
&HQWUDO *RYHUQPHQW 0LQLVWULHV 'HSDUWPHQWV
&URUH
$WWDFKHG2IÀFHV$XWRQRPRXV%RGLHV368VHWF
‡ 1RRIWUDQVDFWLRQVÁRZLQJWR%DQNVSHUGD\² DQG  6WDWH *RYHUQPHQW 6HFUHWDULDWV'LVWULFW
$YHUDJHODNK0D[ODNK $GPLQLVWUDWLRQV2WKHU'HSDUWPHQWV
H2IÀFH *RYHUQPHQWH3URFXUHPHQW *H31,&
(2IÀFHLVD0LVVLRQ0RGH3URMHFW 003 XQGHUWKH H3URFXUHPHQWVRIWZDUHV\VWHP*H31,&FDWHUVWR
1DWLRQDO H*RYHUQDQFH 3URJUDPPH RI WKH W K H  H O H F W U R Q L F  S U R F X U H P H Q W   W H Q G H U L Q J
*RYHUQPHQW7KHSURGXFWLVGHYHORSHGE\1DWLRQDO UHTXLUHPHQWVRIWKH*RYHUQPHQWGHSDUWPHQWVDQG
,QIRUPDWLFV&HQWUH 1,& DQGDLPVWRXVKHULQPRUH RUJDQL]DWLRQV7KHV\VWHPLVJHQHULFLQQDWXUHDQG
HIÀFLHQWHIIHFWLYHDQGWUDQVSDUHQWLQWHUJRYHUQPHQW FDQHDVLO\EHDGRSWHGIRUDOONLQGVRISURFXUHPHQW
DQGLQWUDJRYHUQPHQWWUDQVDFWLRQVDQGSURFHVVHV DFWLYLWLHV VXFK DV *RRGV 6HUYLFHV  :RUNV E\


0LQLVWU\RI(OHFWURQLFV ,QIRUPDWLRQ7HFKQRORJ\ 0HLW<

*RYHUQPHQW RIÀFHV ,W DLPV DW WUDQVSDUHQF\ DQG LLL  'XULQJ WKH PRQWK RI 2FW  DURXQG 
QRQ GLVFULPLQDWLRQ DPRQJVW ELGGHUV E\ DOORZLQJ WHQGHUV ZHUH SURFHVVHG HOHFWURQLFDOO\ ZRUWK
IUHH DFFHVV WR WHQGHU GRFXPHQWV FODULÀFDWLRQV C&U
VHFXUH RQ OLQH ELG VXEPLVVLRQ DQG DFFHVV WR ELG
9DKDQDQG6DUDWKL 7UDQVSRUW
RSHQLQJHYHQWWRDOOIURPDQ\SODFHRQ;EDVLV
XVLQJWKHV\VWHPWKURXJK,QWHUQHWLQDIDVWHUDQG 1HZ &HQWUDOL]HG ZHEHQDEOHG 9DKDQ  DQG
VHFXUH HQYLURQPHQW DGRSWLQJ LQGXVWU\ VWDQGDUG 6DUDWKLDSSOLFDWLRQVXQGHU7UDQVSRUW003KDYH
RSHQWHFKQRORJLHV7KHV\VWHPKDVEHHQGHVLJQHG EHHQGHYHORSHGDQGGHSOR\HG$OUHDG\572VRI
WDNLQJLQWRDFFRXQWWKHWHQGHUUXOHVIROORZHGLQWKH 'HOKL  572 RI 8WWDUDNKDQG  LQ - .  LQ
FRXQWU\WKH:RUOG%DQNDQG$'%JXLGHOLQHV -KDUNKDQG 5DMDVWKDQ 0DKDUDVKWUD  8WWDU
3UDGHVK DQG  572 LQ HDFK 0HJKDOD\D :HVW
L  7KH PDLQ IXQFWLRQDOLWLHV FRYHUHG DUH
%HQJDO 6LNNLP KDYH EHHQ PLJUDWHG WR FHQWUDOL]H
5HJLVWUDWLRQ RI *RYW RIÀFLDOV  %LGGHUV LQ
9DKDQDSSOLFDWLRQ6DUDWKLLVLPSOHPHQWHGLQ
GLIIHUHQW UROHV 7HQGHU &UHDWLRQ 0XOWLSOH
572VLQ+LPDFKDO3UDGHVKLQ5DMDVWKDQ
3DFNHWV  DQG 3XEOLVKLQJ 3XEOLVKLQJ RI
LQ +DU\DQD  LQ -KDUNKDQG  LQ *XMDUDW LQ
&RUULJHQGXPDQGGHFLVLRQVRI3UHELGPHHWLQJ
.DUQDWDNDLQ7DPLO1DGXLQ2GLVKDLQ- .
2QOLQH %LG VXEPLVVLRQ UHVXEPLVVLRQ
3XGXFKHUU\ LQ0DKDUDVKWUD DQG572HDFKLQ
ZLWKGUDZDO DV SHU WKH QHHGV ZKLFK DUH
&KDQGLJDUK 8WWDUDNKDQG DQG 0HJKDOD\D 8WWDU
FRQÀJXUDEOH  DQG RQOLQH 7HQGHU 2SHQLQJ DQG
3UDGHVK7KHGDWDDYDLODEOHLQ65DQG15GDWDEDVH
'HFU\SWLRQ RI %LGV H$XFWLRQ 0RGXOH ZLWK
LVEHLQJVKDUHGWKURXJKZHEVHUYLFHVDQG$3,VZLWK
IRUZDUGDQGUHYHUVHDXFWLRQLVDOVRDYDLODEOH
YDULRXV *RYW  6HFXULW\ $JHQFLHV ,5'$ 1&5%
LL  6RPHRIWKHVDOLHQWIHDWXUHVEXLOWLQWRWKHV\VWHP %DQNV&LWL]HQV+RPRORJDWLRQDSSOLFDWLRQIRUW\SH
DUH)DFLOLW\IRURQOLQHRIÁLQH3D\PHQWRI7HQGHU DSSURYDO RI QHZ YHKLFOH PRGHOV GHYHORSHG DQG
)HHDQG(0'H[HPSWLRQRI(0'HQFU\SWLRQRI UROOHGRXW ,QYHQWRU\ RI QHZ YHKLFOHV LV EHLQJ
ELGVVXEPLWWHGE\WKHELGGHUIDFLOLW\RIVLQJOH XSORDGHG E\ PDQXIDFWXUHUV DORQJ ZLWK 7HFKQLFDO
WZR PXOWL FRYHU ELG V\VWHP RIÁLQH 7HFKQLFDO DQGÀQDQFLDOSDUDPHWHUV3RUWDOIRU1DWLRQDO3HUPLW
(YDOXDWLRQJHQHUDWLRQRIFRPSDUDWLYHFKDUWVIRU 6\VWHP  )RU LVVXDQFH RI 1DWLRQDO 3HUPLW
)LQDQFLDO %LGV XSORDGLQJ RI FRPPLWWHH $XWKRUL]DWLRQ IRU JRRGV YHKLFOHV GHYHORSHG
UHFRPPHQGDWLRQV  HYDOXDWLRQ VXPPDULHV DW 'HYHORSPHQW RI QHZ PRGXOHV OLNH RQOLQH )DQF\
HDFKVWDJHRIWKHWHQGHUSURFHVVSXEOLFDWLRQRI QXPEHUDXFWLRQV\VWHP'HDOHU3RLQW5HJLVWUDWLRQV
$ZDUGRI&RQWUDFWLQIRUPDWLRQFRPPXQLFDWLRQ RQOLQH WD[ SD\PHQW &LWL]HQ FDQ DSSO\ RQOLQH IRU
RI¶(YHQW$OHUWV·E\0DLOWRYDULRXVVWDNHKROGHUV 'ULYLQJ /LFHQVH DQG RWKHU VHUYLFHV UHODWHG WR
VWDWXV RI HDFK WHQGHU DW YDULRXV VWDJHV DQG 7UDQVSRUW$GRSWLRQRI6&267$EDVHG6PDUW&DUGV
GHWDLOHG 0,6 UHSRUW 0RGXOH HWF  (DFK IRU 'ULYLQJ /LFHQVH DQG 9HKLFOH 5HJLVWUDWLRQ
GRFXPHQWXSORDGHGLQWRWKHV\VWHPLVGLJLWDOO\ &HUWLÀFDWHV EHLQJ LVVXHG LQ  6WDWHV87V
VLJQHG7KHV\VWHPFDQEHFRQÀJXUHGIRUXVH ,QWHJUDWLRQ RI 606 *DWHZD\ H3D\PHQW *DWHZD\
E\ DQ RUJDQL]DWLRQ DW LW·V DSH[ OHYHO DQG DW $DGKDDU 'LJLORFNHU &&716 ,5'$ KDV GRQH
PXOWLSOH VXERUGLQDWH OHYHOV DW ZKLFK WHQGHUV H&KDOODQ  $Q LQWHJUDWHG 7UDQVSRUW (QIRUFHPHQW
FRXOG LQGHSHQGHQWO\ EH ÁRDWHG %LGGHU V \ V W H P  G H Y H O R S H G  I R U  7U D I À F  3R O L F H  D Q G
FDWHJRULHVFODVVHVDUHDOVRFRQÀJXUDEOH (QIRUFHPHQW :LQJ 7KLV IHDWXUHULFK VRIWZDUH


 $QQXDO5HSRUW

FRPSULVHVPRELOHDSSFXPZHEDSSOLFDWLRQ&1* &ROODE&$'
7\SH$SSURYDO²5)&,QWHJUDWLRQDSSOLFDWLRQXQGHU &ROODE&$' LV DQ LQGLJHQRXV &$' VROXWLRQ ZKLFK
9DKDQ6HZDKDVEHHQODXQFKHG SURYLGHVDFROODERUDWLYHIUDPHZRUNIRU&$'&$( 
H*UDQWKDOD\D 3/0 &ROODE&$' UHOHDVHG  PDMRU YHUVLRQV ZLWK
H*UDQWKDOD\D LV D /LEUDU\ 0DQDJHPHQW 6RIWZDUH HPSKDVLVRQWKHUHTXLUHPHQWVRI%KDEKD$WRPLF
ZKLFK KDV EHHQ GHYHORSHG LQ 1,& DQG EHLQJ 5HVHDUFK &HQWUH 0XPEDL DQG 9LNUDP 6DUDEKDL
LPSOHPHQWHG LQ JRYHUQPHQW OLEUDULHV RQ UHTXHVW 6SDFH&HQWUH7ULYDQGUXP7KLVVRIWZDUHLVXVHGIRU
EDVLV7KHVRIWZDUHLVYHU\XVHIXOIRUFRPSXWHUL]DWLRQ GHVLJQLQJ KLJKO\ FRPSOLFDWHG PRGHOV RI WKH
RI OLEUDU\ DFWLYLWLHV DQG XVHU VHUYLFHV 5HFHQWO\ VWUDWHJLF VHFWRU &ROODE&$' LV XVHG LQ WKH
FORXGEDVHGYHUVLRQRIWKHVRIWZDUHUHOHDVHGGXULQJ (QJLQHHULQJ*UDSKLFVFRXUVHDSSHDULQJIRU&%6(
ZKLFKLVKRVWHGLQ&ORXGDQGXVHGRQOLQHE\ SOXVVWXGHQWVKDYHEHHQWUDLQHGDVSDUWRI3*
OLEUDULHV 'LSORPD LQ 7RRO GHVLJQ  &$' FRXUVH DW ,QGR
*HUPDQ7RRO5RRP$XUDQJDEDG
8QLRQ&DWDORJRI/LEUDULHV$1HZNLQGRIVHUYLFH
ZDV ODXQFKHG IURP 1,& IRU WKH EHQHÀWV RI ,QGLDQ &ROODE&50 H&50  KDV EHHQ GHYHORSHG IRU
OLEUDULHV LQ JHQHUDO DQG XVHUV RI H*UDQWKDOD\D LQWHUQDOXVHRIWKH,3+:(OHFWURQLF6\VWHP'HVLJQ
VSHFLÀFDOO\8QGHUWKHVHUYLFHVD8QLRQ&DWDORJRI  0DQXIDFWXULQJ JURXS RI 'HLW< DQG GDWD IRU
OLEUDULHV ZKLFK DUH XVLQJ H*UDQWKDOD\D VRIWZDUH DSSUR[LPDWHO\  FRPSDQLHV LV QRZ PDQDJHG
KDV EHHQ KRVWHG LQ 1,& 6HUYHU DQG DYDLODEOH LQ &ROODE&$' (53+5 PRGXOH LV FXVWRPL]HG IRU
SXEOLF GRPDLQ DW KWWSZZZHJOLEQHWJRYLQ  LQWHUQDO 1,& XVH WR PDQDJH WKH RXWVRXUFHG
%HVLGHVDKRPHSDJHLVSURYLGHGWRHDFKPHPEHU PDQSRZHUGHSOR\HGIRUYDULRXVSURMHFWV
OLEUDU\ WR KRVWVHDUFK LWV RZQ FDWDORJ ZLWK DQ &ROODE''6 &ROODERUDWLYH 'LJLWDO 'LDJQRVLV
LQGLYLGXDOZHE85/ 6\VWHP SURYLGHV DQ LQWHJUDWHG FROODERUDWLYH
,PPLJUDWLRQ9LVD )RUHLJQHU7UDFNLQJ HQYLURQPHQWWRYLVXDOLVHPHGLFDODQGGHQWDOLPDJHV
6\VWHP IRU GLDJQRVLV DQG WUHDWPHQW SODQQLQJ 5HPRWH
+HDOWK &HQWUHV FDQ EH FRQQHFWHG WR H[SHUW
6WDWXV VR IDU WLOO GDWH &9LVD KDV EHHQ
UDGLRORJLVWVDQGGRFWRUVLQ&HQWUHVRI([FHOOHQFH
LPSOHPHQWHGLQ,QGLDQ0LVVLRQV$EURDGRXWRI
$V SDUW RI WKH 'HSDUWPHQW RI +HDOWK 5HVHDUFK
,QGLDQ0LVVLRQV$EURDG%LRPHWULFVKDVEHHQ
SURMHFWWKH3LORWLPSOHPHQWDWLRQRI&ROODE''6KDV
LPSOHPHQWHGLQ,QGLDQ0LVVLRQV$EURDGRXWRI
EHHQXQGHUWDNHQDW*RYHUQPHQW0HGLFDO'HQWDO
,QGLDQ0LVVLRQV&)52KDVEHHQLPSOHPHQWHG
FROOHJHV WR HYDOXDWH WKH (IIHFWLYHQHVV DQG
LQ DOO  )552V  )52V RXW RI  )52V
(IÀFLHQF\ RI 5HPRWH GLDJQRVLV DORQJ ZLWK WKH
DFURVVWKHFRXQWU\&)250KDVEHHQLPSOHPHQWHG
([SHUW 'RFWRUV 'HQWLVWV LQ $,,06 1HZ 'HOKL
LQDOO)552V)52VRXWRI)52VDFURVV
&ROODE''6 LV DOVR EHLQJ LPSOHPHQWHG DFURVV 
WKHFRXQWU\6)250KDVEHHQLPSOHPHQWHGLQDOO
FROOHJHVRQWKH1DWLRQDO0HGLFDO&ROOHJH1HWZRUN
)552V)52VRXWRI)52VDFURVVWKH
FRXQWU\ (7RXULVW 9LVD H79  KDV EHHQ LQWURGXFHG  )LQDQFLDO WUDQVDFWLRQV HOHFWURQLF 
IRUFRXQWULHVDQGDLUSRUWV6LQFHWKHODXQFK FDVKOHVV
RIWKHVFKHPHDSSUR[/DF9LVDVKDYHEHHQ (OHFWURQLF SD\PHQWV DQG IXQG WUDQVIHUV KDYH WKH
LVVXHGWLOOQRZ DGYDQWDJH RI WDUJHWHG DQG GLUHFW GHOLYHU\ WR WKH
LQWHQGHG EHQHÀFLDULHV ZLWKRXW WKH LQYROYHPHQW RI


0LQLVWU\RI(OHFWURQLFV ,QIRUPDWLRQ7HFKQRORJ\ 0HLW<

PLGGOHPHQZKRPD\RWKHUZLVHVXEYHUWWKHV\VWHP )LQDQFLDO$GGUHVVLQWKHEDQNLQJVHFWRU
6LPLODUO\RQOLQHPHFKDQLVPVIRUSD\PHQWRIIHHVIRU 'LUHFW%HQHÀW7UDQVIHU '%7 
FHUWDLQSXEOLFVHUYLFHVRIIHUDWUDQVSDUHQWIULHQGO\ ,Q RUGHU WR DFKLHYH WDUJHWHG GHOLYHU\ RI ZHOIDUH
DQGH[SHGLWLRXVFKDQQHOWRFLWL]HQVIRUSD\PHQWV,W VHUYLFHVLQDWUDQVSDUHQWDQGHIÀFLHQWPDQQHUWKH
LVHQYLVDJHGWKDWDOOÀQDQFLDOWUDQVDFWLRQVDERYHD *RYHUQPHQW ODXQFKHG 'LUHFW %HQHÀW 7UDQVIHU
FHUWDLQ WKUHVKROG VKDOO EH PDGH HOHFWURQLF DQG WKURXJK$DGKDDU3D\PHQW%ULGJH $3% DQGRWKHU
FDVKOHVV )XUWKHU WKHUH LV DOVR D PRYH WRZDUGV FKDQQHOVLQ$DGKDDU3D\PHQW%ULGJH $3% 
VWUHQJWKHQLQJWKHLPSOHPHQWDWLRQRI'LUHFW%HQHÀWV KDV EHHQ HVWDEOLVKHG E\ 1DWLRQDO 3D\PHQWV
7UDQVIHU '%7 E\OHYHUDJLQJWKH´-$07ULQLW\µ -DQ &RUSRUDWLRQRI,QGLD 13&, ZKLFKLVDSSURYHGE\
'KDQ$DGKDDUDQG0RELOH  5%,DVDYDOLG3D\PHQW6\VWHP,WKHOSVGHDOZLWKWKH
$V$DGKDDULVXQLTXHDQGGRHVQRWFKDQJHRYHUWKH FKDOOHQJHV UHODWHG WR EDQNLQJ WUDQVDFWLRQV ZLWK
OLIHF\FOH RI DQ LQGLYLGXDO WKH GLJLW $DGKDDU LV EHQHÀWV WR ERWK WKH VWDNHKROGHUV QDPHO\ WKH
VXIÀFLHQWWRWUDQVIHUDQ\SD\PHQWVWRDQLQGLYLGXDO *RYHUQPHQW DQG WKH 5HVLGHQWV $V SHU WKH
7RGD\LQRUGHUWRWUDQVIHUPRQH\WRDEHQHÀFLDU\ GLUHFWLRQV RI *RYHUQPHQW RI ,QGLD DOO FHQWUDOO\
WKH *RYHUQPHQWV ,QVWLWXWLRQV QHHG WR NQRZ WKH VSRQVRUHGDQGFHQWUDOVHFWRUVFKHPHVFRPHXQGHU
EDQNDFFRXQW,)6&&RGHDQGEDQNEUDQFKGHWDLOV WKH SXUYLHZ RI '%7 ZKLFK LV WR EH LPSOHPHQWHG
HWFZKLFKLVSURQHWRFKDQJH+RZHYHU$DGKDDU DFURVV,QGLD$VRQVW'HFHPEHUDURXQG
RIIHUVWKHSRVVLELOLW\RIVHQGLQJPRQH\E\MXVWXVLQJ FURUHWUDQVDFWLRQVKDYHEHHQFDUULHGRXWRYHU
WKHGLJLWQXPEHUIRUOLIHZLWKRXWERWKHULQJDERXW $3%GLVEXUVLQJRYHUCFURUH6HYHUDOVFKHPHV
DQ\FKDQJHVLQWKHEDQNDFFRXQWRIWKHLQGLYLGXDOV RWKHU WKDQ '%7 VFKHPHV DUH OHYHUDJLQJ $3%
7KXVZLWKWKLVXQLTXHSURSHUW\RIEHLQJYDOLGIRUD SODWIRUPIRUHIÀFLHQWGHOLYHU\RIEHQHÀWV
OLIHWLPH $DGKDDU LV YHU\ ZHOO SHUFHLYHG DV D


 $QQXDO5HSRUW

$DGKDDU(QDEOHG3D\PHQW6\VWHP $(36  $ ZDV HDUOLHU WUDQVIHUUHG DV OXPS VXP WR VWDWH RLO
XQLÀHG SD\PHQW QHWZRUN FDOOHG WKH $DGKDDU FRPSDQLHVLVQRZEHLQJWUDQVIHUUHGWRLQGLYLGXDOV
HQDEOHG 3D\PHQW 6\VWHPV $(36  KDV EHHQ GLUHFWO\LQWRWKHLUEDQNDFFRXQWV
GHVLJQHG DQG LPSOHPHQWHG E\ 13&,  7KH $(36 '%7/ 3KDVH,, VWDUWHG ZLWK D FRQVXPHU EDVH RI
V\VWHPZRUNVWKURXJKDGHYLFHFDOOHG¶0LFUR$70· FURUH7KLVUHGXFHGWRFURUHDVRQVW
XVLQJD0RELOH6,0FDUGZKHUHE\GDWDFRQQHFWLYLW\ 0DUFK  'XULQJ WKLV 3KDVH WKH VFKHPH ZDV
DXWKHQWLFDWHV WKH UHVLGHQW ZLWK 8,'$, GDWDEDVH LPSOHPHQWHGDFURVVWKHFRXQWU\6LQFHWKHWLPHWKH
EDVLQJ RQ KLVKHU $DGKDDU DQG ÀQJHUSULQWV  ,I LW FRQVXPHUKDVQRZH[SDQGHGWRFURUHV,QWKH
PDWFKHV WKH $(36 URXWHV WKH WUDQVDFWLRQ WR WKH H[LVWLQJFRQVXPHUEDVHRIFURUHDERXW
%DQNIRUWKHÀQDQFLDOWUDQVDFWLRQDQGWKHF\FOHJHWV FURUH FRQVXPHUV KDYH JLYHQ $DGKDDU WR 20&
FRPSOHWHG ,I WKH UHVLGHQW·V DXWKHQWLFDWLRQ IDLOV FRPSDQLHV RXW RI ZKLFK  FURUH KDYH JLYHQ
DSSURSULDWHPHVVDJHLVSURYLGHGWRKLP$DGKDDU $DGKDDUWR%DQN$VDUHVXOWDWRWDORIFURUH
HQDEOHG3D\PHQWV6\VWHP $H36 IDFLOLWDWHVEDVLF WUDQVDFWLRQV KDYH WDNHQ SODFH RQ $3% DORQH
EDQNLQJ DFFHVV YL] FDVK ZLWKGUDZDO FDVK GLVEXUVLQJVXEVLG\ZRUWKDERXWCFURUH
GHSRVLW EDODQFH HQTXLU\ IXQG WUDQVIHUV  WR WKH
0DKDWPD *DQGKL 1DWLRQDO 5XUDO (PSOR\PHQW
EHQHÀFLDULHVLQDKDVVOHIUHHPDQQHUDWQHDUWKH
*XDUDQWHH 6FKHPH 0*15(*6  $ WRWDO RI 
G R R U V W H S V   ) X U W K H U  X V D J H  R I  $ D G K D D U
FURUH ZRUNHUV KDYH JRW WKHLU $DGKDDU VHHGHG LQ
DXWKHQWLFDWLRQHQDEOHVWUDQVDFWLRQVLQUHDOWLPHLQ
0*15(*6GDWDEDVHWLOOVW'HFHPEHU$V
DQLQWHURSHUDEOHHQYLURQPHQW7LOOVW'HFHPEHU
RQ VW 'HFHPEHU  PRUH WKDQ  FURUH
 DERYH %DQNV DQG 'HSDUWPHQW RI 3RVW DUH
SD\PHQWV KDYH EHHQ GRQH XQGHU 0*15(*6 E\
DFWLYH RQ $H36 SODWIRUP DQG %DQNV SHUIRUPHG
SD\LQJRYHUCFURUHWKURXJK$3%
FURUHWUDQVDFWLRQV
3UDGKDQ 0DQWUL -DQ'KDQ<RMDQD 30-'< 
'HPRQHWL]DWLRQDQG$DGKDDU'XULQJWKHUHFHQW
3UDGKDQ 0DQWUL -DQ'KDQ<RMDQD 30-'<  LV D
GHPRQHWL]DWLRQPRYHZLWKRYHURIWKHFXUUHQF\
1DWLRQDO 0LVVLRQ IRU )LQDQFLDO ,QFOXVLRQ WR HQVXUH
EHLQJ GHPRQHWL]HG GLJLWDO SD\PHQWV JRW WKH ELJ
DFFHVV WR ÀQDQFLDO VHUYLFHV QDPHO\ %DQNLQJ
SXVK$PRQJWKHWRSÀYHZD\VWRPRYHIRUZDUGLQ
6DYLQJV  'HSRVLW $FFRXQWV 5HPLWWDQFH &UHGLW
WKHGLUHFWLRQRIGLJLWDOSD\PHQWV$H36SOD\VDYHU\
,QVXUDQFH 3HQVLRQ LQ DQ DIIRUGDEOH PDQQHU 7KH
LPSRUWDQW UROH IURP WKH GLJLWDO SD\PHQWV
30-'<ZDVODXQFKHGLQ$XJXVW$VRQVW
SHUVSHFWLYH:LWKRYHUFURUHDFFRXQWVVHHGHG
'HFHPEHUDERXWFURUHDFFRXQWVKDYH
ZLWKRYHUFURUHXQLTXH$DGKDDUVYHU\VHFRQG
EHHQ RSHQHG XQGHU WKH VFKHPH ZLWK $DGKDDU
DGXOWLQWKHFRXQWU\KDVOLQNHGKLVKHUEDQNDFFRXQW
VHHGLQJLQFURUHDFFRXQWV
ZLWK $DGKDDU $H36 FDQ EH XVHG XQGHU YDULRXV
SDOWIRUPV OLNH %+,0 $33 WR SURPRWH FDVK OHVV 1DWLRQDO3D\PHQW6HUYLFH3ODWIRUP
SD\PHQWV E\ GLUHFWO\ GHELWLQJ WKH FXVWRPHUV· ,QWKHÀQDQFLDOVSDFH0HLW<KDVFROODERUDWHGZLWK
$DGKDDU OLQNHG DFFRXQW DQG FUHGLWLQJ WKH 16'/ 'DWDEDVH 0DQDJHPHQW /LPLWHG 1'0/  D
PHUFKDQWV· EDQN DFFRXQW 7KH $H36 V\VWHP LV ZKROO\ RZQHG VXEVLGLDU\ RI 1DWLRQDO 6HFXULWLHV
LQWHURSHUDEOHDWRYHUEDQNVDQGDYDLODEOHZLWK 'HSRVLWRU\/LPLWHG 16'/ IRUSURYLGLQJ1DWLRQDO
RYHUEDQNVIRU2186WUDQVDFWLRQV 3D\PHQW6HUYLFH3ODWIRUP 3D\*RY DFHQWUDOL]HG
'LUHFW %HQHÀWV 7UDQVIHU IRU /3* '%7/  7KH SODWIRUPIRUIDFLOLWDWLQJDOOJRYHUQPHQWGHSDUWPHQWV
*RYHUQPHQW KDV ODXQFKHG 'LUHFW %HQHÀW 7UDQVIHU DQG VHUYLFHV WR FROOHFW RQOLQH SD\PHQWV IURP
RQ/3* '%7/ DVFKHPHZKHUHE\WKHVXEVLG\WKDW FLWL]HQVIRUSXEOLFVHUYLFHV


0LQLVWU\RI(OHFWURQLFV ,QIRUPDWLRQ7HFKQRORJ\ 0HLW<

3D\*RY RIIHUV DQ HQGWRHQG WUDQVDFWLRQDO QDPHO\ H3DVV RI &HQWUH IRU *RRG *RYHUQDQFH
H[SHULHQFH IRU FLWL]HQV ZKR FDQ RSW IURP YDULRXV &**  $QGKUD 3UDGHVK ;WHQGHG /LFHQVLQJ 
SD\PHQWRSWLRQVVXFKDV1HW%DQNLQJ EDQNV  /DERUDWRU\ 1RGH ;/1  IURP 1,& *XMDUDW H
GHELW FDUGV FUHGLW FDUGV FDVK FDUGVSUHSDLG +RVSLWDO IURP 1,& 7ULSXUD 0HH6HYD IURP $QGKUD
FDUGVZDOOHWVDQG1()757*6HWF 3UDGHVK 7HFKQRORJ\ 6HUYLFHV $376  $QGKUD
$FKLHYHPHQWV 3UDGHVK DQG +XPDQ 5HVRXUFH 0DQDJHPHQW
6\VWHP +506 IURP1,&+LPDFKDO3UDGHVKZHUH
‡ $QRWKHU WRWDO GHSDUWPHQWVKDYHJRQH/LYH
DSSURYHGE\0HLW<IRUUHSOLFDWLRQLQRWKHU6WDWHV
GXULQJWKLVÀQDQFLDO\HDU
$FKLHYHPHQWV
‡  WRWDO GHSDUWPHQWVDJHQFLHVKDYHJRQH
OLYHDQGWRWDOWUDQVDFWLRQZRUWKCFURUHV 7KHLPSOHPHQWDWLRQVWDWXVRIDSSOLFDWLRQVLV
DVIROORZV
‡ 0DMRU /HDGLQJ GHSDUWPHQWV DUH &RPPHUFLDO
7D [ H V   7U D Q V S R U W  D Q G  * H Q H U L F  3R U W D O ‡ ;/1  $OO  PRGXOHV RI ;/1 KDYH EHHQ
-KDUNKDQG  &6& .HUDOD  'HOKL -DO %RDUG VXFFHVVIXOO\ LPSOHPHQWHG LQ &KKDWWLVJDUK
0DKD2QOLQH&6&H*RYHUQDQFH6HUYLFHV,QGLD +LPDFKDO 3UDGHVK .HUDOD DQG .DUQDWDND
/LPLWHG1,(/,7&HQWUHIRUH*RYHUQDQFH 83  $SSOLFDWLRQLVKRVWHGRQ1'&6KDVWUL3DUN1HZ
02QH .DUQDWDND HWF 'HOKL )RRG  'UXJV &RQWURO $GPLQLVWUDWLRQ
)'&$  RI WKH 6HHNHU 6WDWHV DUH QRZ WRWDOO\
 7HFKQLFDO 2WKHU6XSSRUW
RQOLQHDQGLVVXLQJ/LFHQVHVWR0DQXIDFWXUHUV 
&RQVLGHULQJWKHFRPSOH[LW\RIWKHH.UDQWLDQGWKH 6DOHV /LFHQVHV WR 5HWDLOHUV  :KROHVDOHUV RI
QHHGWRORRNDWLVVXHVVXFKDVRYHUDOOWHFKQRORJ\ SKDUPD  UHODWHG 3URGXFWV RQOLQH 7KH
DUFKLWHFWXUHIUDPHZRUNVWDQGDUGVVHFXULW\SROLF\ DSSOLFDWLRQV IRU GUXJ OLFHQVLQJ KDYH QR
IXQGLQJ VWUDWHJ\ VHUYLFH GHOLYHU\ PHFKDQLVP UHTXLUHPHQW RI SK\VLFDO ÀOH PRYHPHQW ULJKW
VKDULQJRIFRPPRQLQIUDVWUXFWXUHHWFDWDSURJUDP IURP WDOXND SODFHV WR WKH KHDG RIÀFHV 7KH
OHYHO0HLW<LVSURYLGLQJWHFKQLFDODQGRWKHUVXSSRUW RQOLQH DSSOLFDWLRQV DUH WRWDOO\ VWDELOL]HG DQG
OLNHWHFKQLFDODSSUDLVDORIDOO1H*3SURMHFWVSULRUWR SDSHUOHVVFXOWXUHLVDURXQGSHUFHQW
DSURMHFWEHLQJSODFHGEHIRUHWKH()&&1(0HLW<
‡ H3DVV7KHDSSOLFDWLRQLVFXVWRPL]HGIRURQOLQH
KDVDOUHDG\VHWXSD3URJUDPPH0DQDJHPHQW8QLW
GLVEXUVHPHQW RI VFKRODUVKLSV LQ WKH VHHNHU
QDPHO\1DWLRQDOH*RYHUQDQFH'LYLVLRQ 1H*' WR
V W D W H V   7 K H  V \ V W H P  O L Q N V  D O O  Z H O I D U H
SURYLGHVXSSRUWWRGHSDUWPHQWVLQFRQFHSWXDOL]LQJ
GHSDUWPHQWVWUHDVXU\GDWDEDVHVRI6HFRQGDU\
GHYHORSLQJ DSSUDLVLQJ LPSOHPHQWLQJ DQG
6FKRROV&HUWLÀFDWH 66& FROOHJHVDQGEDQNV
PRQLWRULQJUHVSHFWLYH003V
RIWKHVHHNHU6WDWHV
5DSLG5HSOLFDWLRQRI$SSOLFDWLRQV
  +LPDFKDO3UDGHVK&XUUHQWO\VFKHPHV
7KH ´5DSLG 5HSOLFDWLRQ 5ROORXW ,QLWLDWLYHµ LV D &HQWUDO VSRQVRUHG VFKHPHV LV  6WDWH
XQLTXH LQLWLDWLYH ZKLFK OHYHUDJHV VKDULQJ RI VSRQVRUHG VFKHPH LV  DQG 7HFKQLFDO
LQIUDVWUXFWXUH DQG UDSLG UHSOLFDWLRQ RI VXFFHVVIXO VFKHPHVLV RQERDUGHGRQSRUWDO
DSSOLFDWLRQV DFURVV 6WDWHV 7KH LQLWLDWLYH UHTXLUHV
  .DUQDWDND  VFKHPHV RI %& ZHOIDUH
FXVWRPL]DWLRQRIVXFFHVVIXODSSOLFDWLRQVDVSHUWKH
GHSDUWPHQW RI .DUQDWDND LPSOHPHQWHG
6HHNHU6WDWH·V UHTXLUHPHQWV DQG WKHQ KRVWLQJ WKLV
VXFFHVVIXOO\
DSSOLFDWLRQ HLWKHU DW WKH *LYHU6WDWH·V 6'& RU
6HHNHU6WDWH·V6'&7KHSURSRVDOVRIDSSOLFDWLRQV   7ULSXUDVFKHPHV 1RUWK(DVWHUQ6WDWHV


 $QQXDO5HSRUW

DQG 3RVW 0DWULF 6FKRODUVKLS  RI ZHOIDUH UROOHG RXW LQ -KDUNKDQG 6WDWH DQG KRVWHG RQ
GHSDUWPHQWV RI 7ULSXUD LPSOHPHQWHG 1'& 6KDVWUL 3DUN 1HZ 'HOKL 7KH GDWD
VXFFHVVIXOO\ GLJLWL]DWLRQKDVEHHQFRPSOHWHGDQGYHULÀFDWLRQ
  -KDUNKDQG   VFKHPHV RI -KDUNKDQG RI GDWD LV LQ SURJUHVV 0RELOH DSS KDV EHHQ
LPSOHPHQWHGVXFFHVVIXOO\ GHYHORSHG IRU OHDYH DSSOLFDWLRQ $W SUHVHQW
IXQFWLRQDOLW\ IRU PHUJLQJ WKH GHSDUWPHQWV LV
‡ H+RVSLWDOPRGXOHVRIH+RVSLWDODSSOLFDWLRQ
XQGHUGHYHORSPHQW
LPSOHPHQWHG LQ 3KDVH  , LQ  KRVSLWDOV RI
.DUQDWDND -D\DQDJDU +RVSLWDO .& +RVSLWDO H*RY$SS6WRUH
DQG6DQMD\*DQGKL+RVSLWDO 7KHDSSOLFDWLRQLV $Q H*RY $SSOLFDWLRQ 6WRUH $SS6WRUH  ZDV
KRVWHGLQ6'&.DUQDWDND ODXQFKHGRQVW0D\ KWWSVDSSVJRYLQ ,W
 $OVR 2QOLQH 5HJLVWUDWLRQ 6\VWHP 256  KDV LV D FRPPRQ UHSRVLWRU\ DQG PDUNHW SODFH RI
EHHQGHYHORSHGIRUEHWWHUFURZGPDQDJHPHQW FXVWRPL]DEOH  FRQÀJXUDEOH DSSOLFDWLRQV ZKLFK
DQGHOLPLQDWLRQRIORQJTXHXHVLQJRYHUQPHQW FDQ EH UHXVHG E\ YDULRXV JRYHUQPHQW DJHQFLHV
KRVSLWDOV WR SURYLGH $DGKDDU EDVHG RQOLQH GHSDUWPHQWVDW&HQWHUDQG6WDWHVZLWKRXWLQYHVWLQJ
UHJLVWUDWLRQDQGDSSRLQWPHQWV7KHDSSOLFDWLRQ PXFKHIIRUWLQGHYHORSPHQWRIVXFKDSSOLFDWLRQV
LVKRVWHGRQ1DWLRQDOFORXGIRUJOREDODFFHVV D  H*RY$SS6WRUHZLOOKRVWERWKFORXGDQGQRQ
256DSSOLFDWLRQZDVODXQFKHGE\+RQ·EOH30 FORXGHQDEOHGDSSOLFDWLRQV
RQVW-XO\GXULQJ'LJLWDO,QGLD:HHN256 E  &RQVXPHUVZLOOKDYHDQRSWLRQWRGRZQORDGDQ
SRUWDOSURYLGHVIROORZLQJIXQFWLRQDOLWLHV DSSOLFDWLRQ IURP WKH H*RY $SS6WRUH RU UXQ LW
  2QOLQHDSSRLQWPHQWIRU'RFWRUV GLUHFWO\IURPWKHFORXG
  2QOLQHDYDLODELOLW\RI/DEUHSRUWV )ROORZLQJDUHWKHREMHFWLYHVRIVHWWLQJXSWKH
H*RY$SS6WRUH
  2QOLQHDYDLODELOLW\FKHFNIRUEORRGLQEORRG
EDQNV L  6SHHGLQJXSWKHGHYHORSPHQWDQGGHSOR\PHQW
RIH*RYDSSOLFDWLRQV
‡ 0HH6HYD  PRGXOHV LH 0HH6HYD 5HTXHVW
7UDFNLQJ 6\VWHP 05676  DQG 7UDQVIHU LL  (DV\ UHSOLFDWLRQ RI VXFFHVVIXO DSSOLFDWLRQV
3URWRFRO LPSOHPHQWHG LQ $VVDP RQ WK )HE DFURVV6WDWHV
 $SSOLFDWLRQ FRPSRQHQWL]HG LQWR  LLL $YRLG GXSOLFDWLRQ RI HIIRUW DQG FRVW LQ
FRPSRQHQWV VXFFHVVIXOO\ $OO  FRPSRQHQWV GHYHORSPHQWRIVLPLODUDSSOLFDWLRQV
DUH PDGH DYDLODEOH RQ H*RY $SS6WRUH IRU LY (QVXUH DYDLODELOLW\ RI FHUWLÀHG DSSOLFDWLRQ
DGRSWLRQE\DQ\VHHNHU6WDWH IROORZLQJFRPPRQVWDQGDUGVDWRQHSODFH
‡ +5067KHH+506DSSOLFDWLRQZDVGHYHORSHG $FKLHYHPHQWV
DV WKH SURGXFW PRGHO IRU SURYLGLQJ D ‡ 7KHQHZYHUVLRQRIWKHH*RY$SS6WRUHKDVEHHQ
JHQHUDOL]HG KXPDQ UHVRXUFH PDQDJHPHQW ODXQFKHGZLWKEHWWHUIUDPHZRUNDQGQHZXVHU
VROXWLRQ IRU *RYHUQPHQW 'HSDUWPHQWV WR KHOS GHVLJQ
WKHPLQWDNLQJULJKWGHFLVLRQVDWULJKWWLPHDQG
‡ DZDUHQHVVZRUNVKRSVKDYHEHHQFRQGXFWHG
IRU SURSHU PRQLWRULQJ PDQSRZHU SODQQLQJ
DFURVVWKHFRXQWU\
UHFUXLWPHQW SRVWLQJV SURPRWLRQ DQG WUDQVIHU
‡ $SSOLFDWLRQ GHYHORSPHQW DQG UHHQJLQHHULQJ
EDVHG RQ HPSOR\HH VNLOO VHWV &XUUHQWO\ DIWHU
JXLGHOLQHVKDYHEHHQGHYHORSHGDQGSXEOLVKHG
GXH FXVWRPL]DWLRQ WKH DSSOLFDWLRQ KDV EHHQ
RQ$SS6WRUH


0LQLVWU\RI(OHFWURQLFV ,QIRUPDWLRQ7HFKQRORJ\ 0HLW<

‡ DSSOLFDWLRQVSXEOLVKHGLQSXEOLFGRPDLQRXW $ZDUGV  WKH ÀUVW MXU\ PHHWLQJ RI WKH

RI  DSSOLFDWLRQV LQFOXGLQJ DSSOLFDWLRQ DZDUGVZDVKHOGDW0HLW<7KHPHHWLQJZDV
FRPSRQHQWV DQG ZHE VHUYLFHV  KDYH EHHQ FKDLUHGE\6HFUHWDU\0HLW\
DGGHGWRWKH$SS6WRUHFRQWULEXWHGWRWKHSRUWDO   2QOLQHQRPLQDWLRQVZHUHLQYLWHGXQGHUHLJKW
‡  DSSOLFDWLRQV KDYH EHHQ IXQGHG VR IDU IRU  FDWHJRULHVRI'LJLWDO,QGLD$ZDUGV
SURGXFWL]DWLRQ 7KH DSSOLFDWLRQV IXQGHG IRU   (YDOXDWLRQ RI QRPLQDWLRQV KDV EHHQ
SURGXFWL]DWLRQ WKLV \HDU DUH &ROODEODQG H FRPSOHWHG ZLWKWKHVXSSRUW RI QRPLQDWLRQ
3DULNVKD&ROODE(53&ROODE&$'&ROODE''6 SURFHVVLQJSDUWQHU,,7'HOKL
DQGH6DDQDG
  -XU\PHHWLQJKDVEHHQVFKHGXOHGRQUG
‡ 7KH3URMHFW,PSOHPHQWDWLRQ&RPPLWWHHRI$SS 1RYHPEHUWRÀQDOL]HWKHZLQQHUV
6WRUH PHHWV DW UHJXODU LQWHUYDOV IRU HYDOXDWLQJ
  +RQ EOH0LQLVWHURI(OHFWURQLFV ,QIRUPDWLRQ
SURSRVDO VXEPLWWHG IXQGLQJ RI FRQWULEXWHG
7HFKQRORJ\ /DZ DQG -XVWLFH 6KUL 5DYL
DSSOLFDWLRQVIRUSURGXFWL]DWLRQLPSOHPHQWDWLRQ
6KDQNDU3UDVDGIHOLFLWDWHGWKHZLQQHUVLQWKH
DQGPRQLWRULQJ
SUHVHQFHRI6KUL33&KDXGKDU\0LQLVWHURI
‡ $ VWDWH OHYHO DZDUHQHVV ZRUNVKRS ZDV 6WDWH IRU (OHFWURQLFV  ,QIRUPDWLRQ
RUJDQL]HGLQ6WDWHRI6LNNLPDQG:HVW%HQJDO 7HFKQRORJ\ /DZ DQG -XVWLFH RQ WK
ZKLFK LQFOXGHG WKH QRPLQHHV RI YDULRXV 'HFHPEHU  DW 9LJ\DQ %KDZDQ 1HZ
GHSDUWPHQWVRI*RYHUQPHQWRI6WDWHVRIIHULQJ 'HOKL
PDMRUH²VHUYLFHVWRWKHFLWL]HQV
‡ /DXQFK RI H[FOXVLYH *RYHUQPHQW 6HUYLFHV
,QGLD3RUWDO 3RUWDOIRUFLWL]HQV KWWSVHUYLFHVLQGLDJRYLQ
,QGLD 3RUWDO D 0LVVLRQ 0RGH 3URMHFW LQ WKH   DQ H[FOXVLYH SRUWDO *RYHUQPHQW 6HUYLFHV
LQWHJUDWHGVHUYLFHVFDWHJRU\XQGHUWKH1H*3KDV 3RUWDO KDV EHHQ GHVLJQHG IRU HQDEOLQJ
EHHQ HQYLVDJHG WR EH D XQLÀHG SRUWDO WKDW ZRXOG &LWL]HQVWRÀQG*RYHUQPHQWVHUYLFHVHDVLO\
SURYLGH VLQJOHZLQGRZDFFHVV WRLQIRUPDWLRQDQG
‡ 3URPRWLRQRI*RYHUQPHQWLQLWLDWLYHVHYHQWV
VHUYLFHV WR EH HOHFWURQLFDOO\ GHOLYHUHG IURP DOO
*RYHUQPHQW GHSDUWPHQWV LQVWLWXWLRQV DQG   0LFURVLWHIRU5HSXEOLF'D\VKRZFDVLQJWKH
RUJDQL]DWLRQV,WKDVEHHQPRVWSRSXODUVRXUFHRI UHSXEOLF GD\ FHOHEUDWLRQV  3UHVLGHQW V
LQIRUPDWLRQWRDZLGHUDQJHRIVWDNHKROGHUVIRUP VSHHFK WR WKH QDWLRQ DQG DZDUGHHV RI
FLWL]HQV WR JRYHUQPHQW WR EXVLQHVV WR ,QGLDQ YDULRXV DZDUGV KDV EHHQ GHVLJQHG
'LDVSRUD ,W LV D JDWHZD\ ,QGLDQ *RYHUQPHQW G H Y H O R S H G  D Q G  P D L Q W D L Q H G  D W
ZHEVLWHVDWFHQWUHVWDWHDQGGLVWULFWOHYHOVDQGKDV KWWSNQRZLQGLDJRYLQUHSXEOLFGD\USGD\
D ULFK UHSRVLWRU\ RI )RUPV 'RFXPHQWV 6HUYLFHV SKS
$FWV5XOHV6FKHPHVDQGZHE/LQNV7KHVHFRQG   0LFURVLWHIRU,QGHSHQGHQFH'D\GHVLJQHG
SKDVH RI ,QGLD 3RUWDO KDV EHHQ LQLWLDWHG LQ -XQH G H Y H O R S H G  D Q G  P D L Q W D L Q H G  D W
 KWWSNQRZLQGLDJRYLQLQGHSHQGHQFHGD\L
$FKLHYHPHQWV QGHSHQGHQFHGD\SKS

‡ 'LJLWDO ,QGLD $ZDUGV IRUPHUO\ NQRZQ DV :HE   6SRWOLJKWVFRYHULQJLPSRUWDQW*RYHUQPHQW

5DWQD$ZDUGV ,QLWLDWLYHXQGHU1DWLRQDO3RUWDO LQLWLDWLYHV DQG HYHQWV OLNH 'LJLWDO ,QGLD
1DPDPL *DQJH 3URJUDPPH 6DDQVDG
  7RZDUGV WKH SUHSDUDWLRQV RI 'LJLWDO ,QGLD
$GDUVK *UDP <RMDQD (PSOR\HHV  6WDWH


 $QQXDO5HSRUW

,QVXUDQFH 6FKHPH $WDO 3HQVLRQ <RMDQD $FKLHYHPHQWV

,QFRPH 'HFODUDWLRQ 6FKHPH  'HHQ ‡ 0HWD 'DWD 6WDQGDUG IRU 'ULQNLQJ ZDWHU DQG
'D\DO $QW\RGD\D <RMDQD 3UDGKDQ 0DQWUL VDQLWDWLRQKDVEHHQDSSURYHGDQGQRWLÀHGLQWKH
8MMZDOD <RMDQD 'HHQ 'D\DO 8SDGK\D\D *D]HWWHRI,QGLD
*UDP-\RWL<RMDQD0DDQ.L%DDWE\30DQG
‡ ,QGLDQ 6WDQGDUG RQ HQKDQFHG LQVFULSW IRU
6NLOO8S5XUDO,QGLDHWF
.H\ERDUG OD\RXW KDV EHHQ DSSURYHG DQG
  0RQWKO\QHZVOHWWHUVZHUHVHQWWRUHJLVWHUHG QRWLÀHGLQWKH*D]HWWHRI,QGLD
XVHURI,QGLD3RUWDOWRNHHSWKHPXSGDWHG
‡ *XLGHOLQHVIRU$GRSWLRQRI(OHFWURQLF3D\PHQWV
ZLWKWKHODWHVWKDSSHQLQJVUHODWHGWR1DWLRQ
DQG 5HFHLSWV KDYH EHHQ XQGHU DSH[ ERG\
‡ 1,& KDV EHHQ DZDUGHG WKH WK 1&3('3  DSSURYDO
0SKDVLV8QLYHUVDO'HVLJQ$ZDUGVIRULWV
‡  &DSDFLW\ %XLOGLQJ 3URJUDPPHV DQG 
LQLWLDWLYH *XLGHOLQHV IRU ,QGLDQ *RYHUQPHQW
:HELQDUVRQWKHH*RYHUQDQFHVWDQGDUGVKDYH
:HEVLWHV *,*:  DQ LQLWLDWLYH XQGHU ,QGLD
EHHQRUJDQL]HG
3RUWDO 3URMHFW1HZV DUWLFOH DYDLODEOH DW
KWWSLQIRUPDWLFVQLFLQQHZVQHZVGHWDLOQHZV, &DSDFLW\%XLOGLQJ6FKHPH
'@ &DSDFLW\ %XLOGLQJ &%  VFKHPH 3KDVH ,, LV D
‡ 6RFLDO0HGLD3UHVHQFH FRQWLQXDWLRQRILQLWLDWLYHXQGHU&%VFKHPH3KDVH,
DQG WKH VFKHPH ZRXOG DOVR VXSSRUW WKH
  )DFHERRNSDJHPDLQWDLQHGDW
LPSOHPHQWDWLRQRIYLVLRQRI'LJLWDO,QGLDLQFOXGLQJH
KWWSVZZZIDFHERRNFRP1DWLRQDO3RUWDO,QGLD
*RYHUQDQFHDQGH.UDQWL7KHNH\FRPSRQHQWVRI
  7ZLWWHUKDQGOHPDLQWDLQHGDW WKHH[LVWLQJVFKHPHDUHSURSRVHGWREHFRQWLQXHG
KWWSVWZLWWHUFRPLQGLDJRYLQ IRUDIXUWKHUSHULRGRI\HDUVDWWRWDORXWOD\RI5V
 1DWLRQDO &HQWUH IRU H*RYHUQDQFH FURUHDQGWKHVFRSHKDVEHHQHQODUJHGWR
6WDQGDUGVDQG7HFKQRORJ\ 1H67 FRYHU FHQWUDO OLQH PLQLVWU\ LQ YDULRXV WUDLQLQJ DQG
*RYHUQPHQW RI ,QGLD *R,  LV LPSOHPHQWLQJ WKH NQRZOHGJH LQLWLDWLYHV 7KH REMHFWLYH RI WKH &%
' L JLW DO ,QGLD SURJUD PPH D V D Q XPE UH OOD VFKHPH 3KDVH ,, LV WR SURYLGH SURIHVVLRQDO
SURJUDPPHWRSUHSDUH,QGLDIRUNQRZOHGJHEDVHG UHVRXUFHVDQGWUDLQLQJWRSROLWLFDODQGSROLF\OHYHO
WUDQVIRUPDWLRQLQWRDGLJLWDOO\HPSRZHUHG6RFLHW\ GHFLVLRQPDNHUVIRUDOO6WDWHV87VWREXLOGWKHLQ
DQGNQRZOHGJHHFRQRP\8QGHUWKHRYHUDUFKLQJ KRXVH FDSDFLW\ IRU LPSOHPHQWDWLRQ RI YDULRXV H
YLVLRQ RI 'LJLWDO ,QGLD *R, DLPV WR PDNH DOO *RYHUQDQFHLQLWLDWLYHV
*RYHUQPHQWVHUYLFHVGLJLWDOO\DFFHVVLEOHWRFLWL]HQV 0DMRUFRPSRQHQWV
WKURXJK PXOWLSOH FKDQQHOV VXFK DV ZHE PRELOH ‡ 5HFUXLWPHQWGHSOR\PHQWDQG+5PDQDJHPHQW
DQGFRPPRQVHUYLFHGHOLYHU\RXWOHWV7RLPSOHPHQW RIWKHVSHFLDOL]HGUHVRXUFHVLQWKH6H07VLQ
H*RYHUQDQFH SURMHFWV VXFFHVVIXOO\ WKH VROXWLRQ DOO6WDWHVDQG87V
VKDOO KDYH WR EH LQWHURSHUDEOH VHFXUH VFDODEOH ‡ 7UDLQLQJDQGGHYHORSPHQWLQLWLDWLYHVLQFOXGLQJ
UHXVDEOH OHDGLQJ WR HIÀFLHQF\ HIIHFWLYHQHVV LQWHUDOLD
UHGXFWLRQ LQ FRVW DQG ULVN VWDQGDUGL]DWLRQ LV RQO\
  'HYHORSPHQW RI FRPSHWHQF\ IUDPHZRUNV
ZD\ WR  DFKLHYH WKLV REMHFWLYH 1H67 LV DQ
WUDLQLQJ JXLGHOLQHV FRQWHQW FDVH VWXGLHV
LQVWLWXWLRQDOPHFKDQLVPZKLFKKDVEHHQSODFHGWR
HWFIRUGLIIHUHQWJURXSVRIVWDNHKROGHUV
PHHWWKHREMHFWLYH
  'HYHORSLQJDSRRORIFHUWLÀHGWUDLQHUV


0LQLVWU\RI(OHFWURQLFV ,QIRUPDWLRQ7HFKQRORJ\ 0HLW<

 'HYHORS 2QOLQH DQG :HE %DVHG 7UDLQLQJ VKDULQJ EHVW SUDFWLFHV DQG FUHDWLRQ RI
DQG/HDUQLQJ0DQDJHPHQW6\VWHP NQRZOHGJHUHSRVLWRULHVHWF
  & H U W L À F D W L R Q  S U R J U D P P H V  I R U $FKLHYHPHQWV
VSHFLDOL]HGNH\UROHV 7KH IROORZLQJ WUDLQLQJ SURJUDPPHVZRUNVKRSV
‡ .QRZOHGJHPDQDJHPHQWDQGVKDULQJWKURXJK KDYHEHHQFRQGXFWHGXQGHU&%VFKHPHV3KDVH,,
ZRUNVKRSV GHYHORSPHQW RI FDVH VWXGLHV WLOOLQ)<

7UDLQLQJ3URJUDPPH:RUNVKRSV 1RRI3URJUDPPHV 1RRI3DUWLFLSDQWV

6H072ULHQWDWLRQ   
7KHPDWLF:RUNVKRS   
&,2SURJUDP    
7UDLQWKH7UDLQHU 777    
&HQWUDO/LQH0LQVLWU\RULHQWDWLRQVDQG6SHFLDOL]HG7UDLQLQJ3URJUDPV  

+LJKOLJKWVRI&DSDFLW\%XLOGLQJ(IIRUWV &HUWLÀFDWH WUDLQLQJ SURJUDPPH IRU 6&67

2IÀFLDOV
‡ 6SHFLDO IRFXV RQ WUDLQLQJ WKH &HQWUDO /LQH
0LQLVWU\'HSDUWPHQW 7KHSURMHFWDLPVWREULGJHWKHGLYLGHLQFDSDFLWLHVRI
RIÀFHUV WR XQGHUWDNH H*RYHUQDQFH HVSHFLDOO\
‡ 6SHFLDOIRFXVRQHPHUJLQJDUHDWHFKQRORJLHV²
7KHPDWLFZRUNVKRSVFRQGXFWHGLQFOXGLQJ WKRVH ZRUNLQJ LQ WKH 6FKHGXOHG &DVWH 6XE 3ODQ
RQ &DVKOHVV 7UDQVDFWLRQV LQ *RYHUQPHQW 6&63  DQG 7ULEDO 6XE 3ODQ 763  DUHDV WR
6HUYLFHV²5HJLRQDOZRUNVKRSSODQQHG PDLQVWUHDPRIZRUNLQJ7KHSURMHFWDOVRPHHWVRQH
RI WKH REMHFWLYHV RI WKH SODQ WRZDUGV KXPDQ
‡ ,PSDFW$VVHVVPHQW6WXG\,QLWLDWHG
UHVRXUFHGHYHORSPHQWRI6&VDQG67VE\SURYLGLQJ
‡ 2ULHQWDWLRQRQ'LJLWDO,QGLDIRU+RQ·EOH03VRI DGHTXDWH HGXFDWLRQDO DQG KHDOWK VHUYLFHV 7KH
ERWK+RXVHVRQ-XO\+RQ·EOH03V SURMHFWLQFOXGHVVNLOOEXLOGLQJWKURXJKWUDLQLQJDQG
IURPERWKWKHKRXVHVSDUWLFLSDWHG GHYHORSPHQWXQGHU'LJLWDO,QGLD
‡ (QVXULQJ,QVWLWXWLRQDOL]DWLRQRIH*RYWUDLQLQJV $FKLHYHPHQWV
%RDUGLQJRI$7,V &7,V
‡ 7KH SURMHFW KDV EHHQ DSSURYHG ZLWK WKH WRWDO
‡ 028 6LJQHG ZLWK <DVKDGD 3XQH ,,0 RXWOD\RI5VFURUHVIRUGXUDWLRQRI\HDUV
$ K P H G D E D G   , , 3$   1 H Z  ' H O K L   & , 3 6 
‡ 7KH1DWLRQDOH*RYHUQDQFH'LYLVLRQ 1H*' LV
+\GHUDEDG $3+5' 9L]DJ 0&5+5'+\G
1,)0 $7, :HVW %HQJDO DQG 5,3$ WR WDNH XS WKH,PSOHPHQWLQJ$JHQF\IRUWKHSURMHFW
VSHFLDOL]HGH*RYDQGHPEHGGHG7UDLQLQJV ‡  SDUWLFLSDQWV KDYH EHHQ WUDLQHG LQ 
‡ (PEHGGHG7UDLQLQJVE\$7,&7, EDWFKHVLQ)<

‡ &RQWHQWDQG)DFXOW\VXSSRUWVWDUWHGWR3RVWDO 3UHSDULQJ1RUWK(DVWIRU'LJLWDO,QGLD
$FDGHP\*KD]LDEDG $QQD ,QVWLWXWH&KHQQDL 7KH +RQ·EOH 3ULPH 0LQLVWHU VWDWHG WKDW ´WKH
$VVDP $GPLQLVWUDWLYH 7UDLQLQJ ,QVWLWXWH *RYHUQPHQWLVFRPPLWWHGIRUUHDOLVLQJSRWHQWLDORI
$7,²*RD $7, .HUDOD 3ROLFH $FDGHP\  WKH1(UHJLRQDQGDFFHOHUDWLQJLWVSURJUHVVDV,QGLD
+\GHUDEDG,*1)$'HKDUDGXQ ZLOOQRWGHYHORSWLOOLWGHYHORSVµ$OVRDFFRUGLQJWR
‡ /06DQG.06DUHXQGHU7HVWLQJ WKH VXUYH\ UHSRUW RI 1DWLRQDO &RXQFLO RI $SSOLHG


 $QQXDO5HSRUW

(FRQRPLF 5HVHDUFK GDWHG WK $XJ  H 5V  FURUHV IRU GXUDWLRQ RI  \HDUV 7KH
5HDGLQHVV RI 1RUWK (DVW UHJLRQ LV EHORZ DYHUDJH 1DWLRQDO H*RYHUQDQFH 'LYLVLRQ 1H*'  LV WKH
DFKLHYHUV6RWKHSURMHFWKDVEHHQFRQFHSWXDOL]HG ,PSOHPHQWLQJ$JHQF\IRUWKHSURMHFW
IRU WKH FDSDFLW\ EXLOGLQJ RI 1( VWDWH JRYHUQPHQW $FKLHYHPHQWV
RIÀFLDOV7KHSURMHFWLQFOXGHVVNLOOEXLOGLQJWKURXJK
‡ 7KHIROORZLQJWUDLQLQJSURJUDPPHVZRUNVKRSV
WUDLQLQJDQGGHYHORSPHQWXQGHU'LJLWDO,QGLD7KH
KDYH EHHQ FRQGXFWHG XQGHU &% VFKHPHV
SURMHFWKDVEHHQDSSURYHGZLWKWKHWRWDORXWOD\RI
3KDVH,,WLOOLQ)<
7UDLQLQJ3URJUDPPH:RUNVKRSV 1RRI3URJUDPPHV 1RRI3DUWLFLSDQWV
&RQVXOWDWLYHZRUNVKRSRQ3UHSDULQJ1(XQGHU'LJLWDO,QGLD  
7UDLQWKH7UDLQHU 777    
/HDGHUVKLS6NLOO(QKDQFHPHQW3URJUDPPH /6H3 ZHHN  
H*RYHUQDQFH6NLOOHQKDQFHPHQWSURJUDPPH  

 'LJLWDO *RYHUQPHQW 5HVHDUFK &HQWUH 1,& DQG6RIWZDUH7HFKQRORJ\3DUNVRI,QGLD 673, 

'*5&  +HVDLGWKDWWKLVFHQWUHZLOOGRLQQRYDWLRQIRUGHOLYHU\
6UL 5DYL 6KDQNDU 3UDVDG +RQ·EOH 0LQLVWHU /DZ  RI JRYHUQPHQW VHUYLFHV WR FLWL]HQ DQG DVVLVW WKH
-XVWLFH(OHFWURQLFV ,QIRUPDWLRQ7HFKQRORJ\*RYW JRYHUQPHQWIRUELJGDWDDQDO\WLFVIRUSODQQLQJDQG
RI ,QGLD LQDXJXUDWHG 'LJLWDO *RYHUQPHQW 5HVHDUFK IRUPXODWLRQ RI JRYHUQPHQW SURJUDPPH DQG
&HQWUH '*5&  DW 3DWQD RQ QG 0DUFK  LQ D VFKHPHV 0RUHRYHU WKH FHQWUH ZLOO OHYHUDJH
IXQFWLRQLQJUDFLRXVSUHVHQFHRI6UL6DQMHHY.XPDU
WHFKQRORJ\IRUZLGHVSUHDGFLWL]HQHQJDJHPHQW
&KDXUDVL\D0HPEHU %LKDU/HJLVODWLYH$VVHPEO\ 
0(025$1'80 2) 81'(567$1',1* 0R8 
+RQ·EOH 0LQLVWHU DGGUHVVHG WKH JDWKHULQJV
ZDV VLJQHG EHWZHHQ 1,& DQG ,QGLDQ ,QVWLWXWH RI
LQFOXGLQJSDUWLFLSDQWVIURPDFDGHPLDLQGXVWU\DQG
7HFKQRORJ\ ,,7 3DWQD8QGHU'*5&&ROODERUDWLRQ
JRYHUQPHQWRIÀFLDOVDQGWDONHGDERXWÀUVWRILWVNLQG
LQWKHDUHDRI5HVHDUFKDQG'HYHORSPHQWLQ'*5&
'*5&DMRLQWYHQWXUHRI1DWLRQDO,QIRUPDWLFV&HQWUH
LVWKHNH\REMHFWLYH


0LQLVWU\RI(OHFWURQLFV ,QIRUPDWLRQ7HFKQRORJ\ 0HLW<

7KHYDVWDPRXQWRIGDWDZKLFKLVFROOHFWHGE\WKH 'LVWULFW6'&DQGRWKHU,&7LQIUDVWUXFWXUHVFUHDWHG
JRYHUQPHQW FDQ EH XWLOLVHG IRU VRFLRHFRQRPLF E\WKH6WDWHV87V
WUDQVIRUPDWLRQRI,QGLDE\LPSDFWLQJWUDQVSDUHQF\ 6RPHRI RXWFRPHVDQG DGYDQWDJHVSURYLGHG
DFFRXQWDELOLW\ DQG HQJDJHPHQW RI FLWL]HQV 2SHQ E\WKH&6&VFKHPHDUHDVIROORZV
GDWDFROOHFWHGRYHUDSHULRGWLPHWKURXJKDG\QDPLF
‡ 7UDQVSDUHQWDQGWLPHO\GHOLYHU\RIJRYHUQPHQW
SODWIRUP KDV LQFUHDVHG LWV SRWHQWLDO DQG YDOXH IRU
DQGRWKHUH6HUYLFHVDWDIIRUGDEOHFRVW
IXUWKHU DQDO\WLFV ZLWK LQWHUHVWLQJ UHVXOWV DQG KDV
‡ 5HGXFLQJ FLWL]HQV· HIIRUWV DQG UHVRXUFHV LQ
SRWHQWLDO WR HPSRZHU FLWL]HQV FKDQJH KRZ
DYDLOLQJ VHUYLFHV ZLWKLQ WKHLU ORFDOLWLHV E\
JRYHUQPHQW ZRUNV DQG LPSURYH WKH GHOLYHU\ RI
HOLPLQDWLQJWKHLUYLVLWWR*RYHUQPHQWRIÀFHVIRU
SXEOLFVHUYLFHV
WKHVDPH
 &RPPRQ6HUYLFHV&HQWUH &6&
‡ ,QWHJUDWHG IUDPHZRUN IRU GHOLYHU\ DQG
7KH&RPPRQ6HUYLFHV&HQWUHV &6&V EHLQJVHWXS GLVVHPLQDWLRQRIYDULRXVJRYHUQPHQWLQLWLDWLYHV
DFURVVWKHFRXQWU\DV,&7HQDEOHGDFFHVVSRLQWVIRU DQGEHQHÀWVWKURXJK,&7HQDEOHPHQW
GHOLYHU\RIVHUYLFHVWRWKHFLWL]HQVDUHLQWHJUDOSDUWRI
‡ , Q W U R G X F L Q J  F K D Q J H  D J H Q W V  I R U  V N L O O
´'LJLWDO ,QGLDµ LQLWLDWLYH RI *RYHUQPHQW RI ,QGLD
GHYHORSPHQWHGXFDWLRQDQGWUDLQLQJVÀQDQFLDO
$OWRJHWKHU WKHVH &6&V DUH EHFRPLQJ D JDPH
LQFOXVLRQDQGLQGLUHFWHPSOR\PHQWJHQHUDWLRQ
FKDQJHU E\ SURYLGLQJ D FRPPRQ SODWIRUP IRU
VRFLDOO\LQFOXVLYHFRPPXQLW\SDUWLFLSDWLRQWKURXJK ‡ $FWLQJDVODVWPLOHGLVWULEXWLRQXQLWVIRUYDULRXV
WUDQVSDUHQWDQGWLPHO\GHOLYHU\RIJRYHUQPHQWDQG JRYHUQPHQWV· GLUHFW EHQHÀWV WR PDUJLQDOLVHG
RWKHU H6HUYLFHV DW DIIRUGDEOH FRVW OHDGLQJ WR EDFNZDUGFRPPXQLWLHV
HPSRZHUPHQW DQG GHYHORSPHQW RI VRFLHW\ ‡ (QFRXUDJLQJ ZRPHQ SDUWLFLSDWLRQ WR EHFRPH
*RYHUQPHQWRI,QGLDKDVDOVRSURYLGHGJXLGHOLQHV 9/(V DQG LQFUHDVLQJ WKHLU FRQWULEXWLRQ LQ WKH
ZKLFKLQWHUDOLDSUHVFULEHWKHLQFHQWLYHVVKDUHVRI VRFLDODQGHFRQRPLFGHYHORSPHQW
IHHIRU*&VHUYLFHVWRWKH9/(VLQWKHUDWLRRI ‡ 7KH&6&VDUHDFWLQJDPHGLXPIRUUXUDOFLWL]HQV
EHWZHHQ 9/( DQG RWKHU VWDNHKROGHUV ,W ZRXOG WRJHWGLJLWDOO\HPSRZHUHGDQGLQWHUDFWZLWKWKH
HQKDQFHVXVWDLQDELOLW\RIWKHSURJUDP JRYHUQPHQWDQGLWVVFKHPHV
7KH &RPPRQ 6HUYLFHV &HQWUHV &6&V  6FKHPH 3UHVHQWO\&6&VDUHDFWLQJDVWKHIROORZLQJ
ZDVODXQFKHGLQ6HSWHPEHUZLWKDQDLPWR ‡ 6HUYLFH'HOLYHU\&HQWUHVIRU²*&%&8WLOLW\
FRYHUDOOODNKFHQVXVYLOODJHVE\RQHODNK&6&V 6HUYLFHVHWF
DVSHUUDWLRHTXLWDEO\VSUHDGDFURVVUXUDO,QGLD
‡ 3HUPDQHQW (QUROPHQW &HQWUHV 3(&  IRU
%DVHGRQWKHDVVHVVPHQWRIWKH&6&6FKHPHWKH
$DGKDDUDQG$DGKDDU3ULQWLQJ&HQWUHV
*RYHUQPHQWRI,QGLDKDVIRUPDOO\LQWURGXFHG&6&
3URMHFWLQ'HFHPEHUXQGHUWKHSLOODURI ‡ ,QVXUDQFHVHUYLFHFHQWUHV
'LJLWDO,QGLDWRH[SDQGWKHRXWUHDFKRIWKH&6&VWR ‡ %XVLQHVV&RUUHVSRQGHQW$JHQWV %&$V XQGHU
DOO*UDP3DQFKD\DWV *3V DFURVVWKHFRXQWU\7KH )LQDQFLDO,QFOXVLRQIRU%DQNLQJVHUYLFHV
SURMHFW DLPV WR HVWDEOLVK D QHWZRUN RI  /DNK ‡ (GXFDWLRQDODQG6NLOO'HYHORSPHQW&HQWUHV
&6&V FRYHULQJ DOO *UDP 3DQFKD\DWV HVWLPDWLQJ ‡ (OHFWRUDO5HJLVWUDWLRQFHQWUHV
RQH&6&RYHUDSRSXODWLRQRIFLWL]HQV7KH
‡ :L)LGLVWULEXWLRQFHQWUHV :L)L&KRXSDO 
SURMHFW LV D VHUYLFH GHOLYHU\ RULHQWHG PRGHO ZLWK
HIIRUWWRZDUGVRSWLPXPXWLOLVDWLRQRILQIUDVWUXFWXUH ‡ ,QIRUPDWLRQ&HQWUHIRUYDULRXVVFKHPHVWKURXJK
FUHDWHGLQWKHIRUPRI6:$1%KDUDW1HW66'*H DZDUHQHVVJHQHUDWLRQHWF


 $QQXDO5HSRUW

‡ &6&VZRXOGDOVREHIXQFWLRQLQJDV:KLWH/DEHO FRPPXQLWLHV E\ FKDQJLQJ WKH ZD\ UXUDO FLWL]HQV

%XVLQHVV &RUUHVSRQGHQWV %DQN 0LWUDV  IRU OHDUQFRPPXQLFDWHDQGPDQDJHWKHLUOLYHOLKRRGV
SURYLGLQJ GHVLUHG EDQNLQJ VHUYLFHV VXFK DV DFFHVV KHDOWK ÀQDQFLDO DQG RWKHU JRYHUQPHQW
ZLWKGUDZDOGHSRVLWVUHPLWWDQFHVDQGEDODQFH VHUYLFHV&6&VFKHPHKDVEHHQHQFRXUDJLQJPRUH
HQTXLU\ WKURXJK $DGKDDU HQDEOHG 3D\PHQW DQGPRUHSDUWLFLSDWLRQRIZRPHQWREHFRPH9/(V
6\VWHPV $(36  DQGLQFUHDVLQJWKHLUFRQWULEXWLRQLQWKHVRFLDODQG
HFRQRPLFGHYHORSPHQW
7KH &6& QHWZRUN KDV EHHQ GHVLJQHG QRW RQO\ WR
HQDEOH GHOLYHU\ RI H6HUYLFHV EXW DOVR WR FUHDWH D 6RPH RI WKH IHZ DFKLHYHPHQWV DQG PLOHVWRQHV
GLJLWDO KLJKZD\ HPSRZHULQJ GLJLWDOO\ H[FOXGHG DFKLHYHGGXULQJWKHODVWIHZ\HDUVXQGHUERWKWKH
&6&SURJUDPV

0LOHVWRQH   

2SHUDWLQJ&6&V RYHUDOO    

*3OHYHO
7UDQVDFWLQJ&6&V WKRXVDQGV ODNKV ODNKV
1R RI H6HUYLFHV *&   $DGKDDU3$1FDUG   &HQWUDO*&VHUYLFHV
DYDLODEOH XQGHU XQLYHUVDO (OHFWLRQ3DVVSRUW  6WDWHV87V
3RUWDORI&6& 3HQVLRQ LQWHJUDWHG*&VHUYLFHV
1R RI H6HUYLFHV %&    DVWLOO2FW
XQGHU XQLYHUVDO 3RUWDO RI
&6&'LJLWDO6HYD

7KHWUDQVDFWLRQGHWDLOVRIDIHZLPSRUWDQW6HUYLFHVRIIHUHGRQ1DWLRQDO&6&3RUWDODUHVKRZQEHORZ
6(59,&(:,6(75$16$&7,216$65(&25'('21&6&3257$
6HUYLFHV 1RRI7UDQVDFWLRQV 9ROLQ/DNK

3HULRG 'HF  'HF  *URZWK 2FW  *URZWK

   RYHU'HF   RYHU'HF 
$DGKDDU3ULQWLQJ     
H5HFKDUJH     
(OHFWULFLW\%LOO3D\PHQW     
('LVWULFW6HUYLFHV     
(OHFWLRQ6HUYLFHV(3,&3ULQWLQJ     
6ZDFKK%KDUDW$EKL\DQ     
,QVXUDQFH3UHPLXP&ROOHFWLRQ     
$DGKDDU8SGDWH     
3$1&DUG$SSOLFDWLRQV     
,5&7&6HUYLFHV     
3DVVSRUW$SSOLFDWLRQV     
$JULFXOWXUH6HUYLFH     
(PSOR\PHQW6HUYLFH     


0LQLVWU\RI(OHFWURQLFV ,QIRUPDWLRQ7HFKQRORJ\ 0HLW<

7KHWUDQVDFWLRQGHWDLOVRIDIHZLPSRUWDQW6HUYLFHVRIIHUHGRQ1DWLRQDO&6&3RUWDODUHVKRZQEHORZ

6(59,&(:,6(75$16$&7,216$65(&25'('21&6&3257$
6HUYLFHV 1RRI7UDQVDFWLRQV 9ROLQ/DNK

3HULRG 'HF  'HF  *URZWK 2FW  *URZWK

   RYHU'HF   RYHU'HF 
7RXUDQG7UDYHOV     
(GXFDWLRQDO6HUYLFH     
(OHFWLRQ6HUYLFHV5HJLVWUDWLRQ     
8QLYHUVLW\6HUYLFH     
,QFRPH7D[5HWXUQ)LOLQJ     
3HQVLRQ6HUYLFH     
+HDOWKFDUH6HUYLFHV     
H&RPPHUFH     
2WKHU*&VHUYLFHV     
2WKHU6HUYLFHV     
5HJLVWUDWLRQRI&RQVWUXFWLRQ:RUNHUV     
727$/     

'LJLWDO(PSRZHUPHQWRI&LWL]HQV FROODERUDWLRQ ZLWK WKH 6WDWH JRYHUQPHQWV DQG

3URPRWLQJ'LJLWDO3D\PHQW6\VWHPV GLVWULFWFROOHFWRUVKDVEHHQRUJDQL]LQJ'LJL'KDQ
0HODV LQ  FLWLHV LQ GLIIHUHQW SDUWV RI WKH
L 'LJL'KDQ &DPSDLJQ 7R SURPRWH 'LJLWDO
FRXQWU\VWDUWLQJIURP'HFHPEHUZKLFK
3D\PHQW PHWKRGV *RYHUQPHQW RI ,QGLD LQ


 $QQXDO5HSRUW

ZLOOHQG RQ%DEDVDKHE$PEHGNDU-D\DQWLRQ  DQG PHUFKDQW HVWDEOLVKPHQWV

WK$SULO7R HQFRXUDJH DGRSWLRQ RI E\DZDUGLQJSUL]HVLQ/XFN\GUDZV
GLJLWDOSD\PHQWVE\ORFDOUHVLGHQWVLQWKHVH LL 'LJL 6KDOD (GXFDWLRQDO 79 &KDQQHO WR
FLWLHV WKHGD\ORQJ'LJL'KDQ0HOD SURYLGHVD SURPRWH 'LJLWDO 3D\PHQWV LQ WKH FRXQWU\
SODWIRUPIDFLOLWLHV E\ YDULRXV VWDNHKROGHUV 7HOHYLVLRQLVRQHRIWKHPRVWSUHIHUUHGPHGLXPV
ZKHUHORFDOUHVLGHQWVLQWHUDFWZLWKEDQNVDQG RZLQJ WR LWV UHDFK DQG SHQHWUDWLRQ DFURVV WKH
RWKHUVWDNHKROGHUVJHWDSSVGRZQORDGHGDQG FRXQWU\'LJL6KDODDQHGXFDWLRQDO79FKDQQHO
OHDUQ KRZ WR GR GLJLWDO WUDQVDFWLRQV 7ZR IRU SURPRWLQJ DZDUHQHVV DQG HGXFDWLRQ RQ
VFKHPHV YL] /XFN\ *UDKDN <RMDQD IRU 'LJLWDO3D\PHQWVZDVODXQFKHGRQWK'HF
FRQVXPHUVDQG'LJL'KDQ9\DSDU<RMDQDIRU DQGLVFXUUHQWO\EHLQJVKRZQRQ'')UHH'LVK
PHUFKDQWV VHHN WR QXGJH SHRSOH WRZDUGV '7+DVZHOODVRQ'LVK797KHFKDQQHOZLOOEH
VLJQLÀFDQWO\KLJKHUXVDJHRIGLJLWDOWUDQVDFWLRQV FRYHULQJGLIIHUHQWIDFHWVRIWKH'LJLWDO3D\PHQWV
WKURXJK WKH RIIHU RI LQFHQWLYHV 7LOO 0DUFK  HFRV\VWHP DV ZHOO DV VKRZFDVLQJ DQG
²0HODVKDYHEHHQKHOGLQFLWLHVDFURVV KLJKOLJKWLQJYDULRXV'LJLWDO,QGLDLQLWLDWLYHV7KH
WKH FRXQWU\ LQ  6WDWHV87V DQG GLVWULEXWHG REMHFWLYHRI'LJL6KDODDIUHHWRDLUFKDQQHOLVWR
WKH SUL]HV RI  &URUH DFURVV WZR LPSDUWLQIRUPDWLRQDQGHGXFDWLRQHVSHFLDOO\LQ
FDWHJRULHV RI ZLQQHUV YL]  FRQVXPHUV UXUDODQGVHPLXUEDQDUHDVUHJDUGLQJWKH'LJLWDO


0LQLVWU\RI(OHFWURQLFV ,QIRUPDWLRQ7HFKQRORJ\ 0HLW<

3D\PHQWV WRROV EHQHÀWV DQG SURFHVVHV 7KH H/HDUQLQJ

FKDQQHO WKURXJK LWV XVHU IULHQGO\ FRQWHQW LV $GYDQFHPHQWV LQ ,&7 KDYH PDGH SRVVLEOH WKH
HQFRXUDJLQJFLWL]HQVWRXVH'LJLWDOSD\PHQWVLQ DYDLODELOLW\RITXDOLW\HGXFDWLRQWRPLOOLRQVRISHRSOH
WKHLUHYHU\GD\OLIH LQ D FRVW HIIHFWLYH PDQQHU 7KH XVH RI ,&7 LQ
3URPRWLQJ$DGKDDU%DVHG3D\PHQW6\VWHP HGXFDWLRQ KDV RSHQHG WKH GRRUV IRU ´DQ\WLPH
L $DGKDDU (QDEOHG 3D\PHQW 6\VWHP $ DQ\ZKHUHµOHDUQLQJ6XSSOHPHQWLQJWKHIRUPDOZD\
XQLÀHG SD\PHQW QHWZRUN FDOOHG WKH $DGKDDU RIHGXFDWLRQZLWKH/HDUQLQJWRROVFRQWHQWDQGXVH
HQDEOHG 3D\PHQW 6\VWHPV $(36  KDV EHHQ RI,&7LQIRUPDOHGXFDWLRQLVLPSRUWDQWWRIDFLOLWDWH
GHVLJQHG DQG LPSOHPHQWHG E\ 13&,  7KH HQKDQFHG OHDUQLQJ HQYLURQPHQW HVSHFLDOO\ ZKHQ
$(36 V\VWHP ZRUNV WKURXJK D GHYLFH FDOOHG WKHUHLVODUJHJDSLQGHPDQGDQGVXSSO\RITXDOLW\
¶0LFUR$70·XVLQJD0RELOH6,0FDUGZKHUHE\ FRQWHQWDQGHGXFDWRUV
GDWDFRQQHFWLYLW\DXWKHQWLFDWHVWKHUHVLGHQWZLWK H/HDUQLQJLVRQHRIWKHWKUXVWDUHDVLGHQWLÀHGE\
8,'$,GDWDEDVHEDVHGRQKLVKHU$DGKDDUDQG 0HLW< IRU LPSDUWLQJ HGXFDWLRQ XVLQJ HGXFDWLRQDO
ÀQJHUSULQWV  $(36 IDFLOLWDWHV EDVLF EDQNLQJ WRROV ZKLFK LV IDFLOLWDWHG DQG VXSSRUWHG E\
DFFHVV YL] FDVK ZLWKGUDZDO FDVK GHSRVLW ,QIRUPDWLRQ DQG &RPPXQLFDWLRQ 7HFKQRORJLHV
EDODQFH HQTXLU\ IXQG WUDQVIHUV  WR WKH ,&7 7KHEURDGREMHFWLYHLVWRGHYHORSWRROVDQG
EHQHÀFLDULHVLQDKDVVOHIUHHPDQQHU8VDJHRI WHFKQRORJLHV WR SURPRWH HOHDUQLQJ 7KH
$DGKDDU DXWKHQWLFDWLRQ HQDEOHV WUDQVDFWLRQV LQ 'HSDUWPHQW KDV EHHQ ÀQDQFLDOO\ VXSSRUWLQJ 5 '
UHDO WLPH LQ DQ LQWHURSHUDEOH HQYLURQPHQW 7LOO SURMHFWV LQ WKH DUHD RI H/HDUQLQJ DW YDULRXV
  V W  ' H F H P E H U            % D Q N V  D Q G DFDGHPLFHGXFDWLRQDOLQVWLWXWHV5 '/DEVHWF
'HSDUWPHQWRI3RVWDUHDFWLYHRQ$H36SODWIRUP $FKLHYHPHQWVGXULQJ
DQG%DQNVSHUIRUPHGFURUHWUDQVDFWLRQV
6RPH FRQFHUQV ZHUH UDLVHG UHJDUGLQJ $DGKDDU 'XULQJ  IROORZLQJ 5 ' SURMHFWV KDYH
(QDEOHG3D\PHQW6\VWHPV7KHVHFRQFHUQVKDYH EHHQVXSSRUWHG
EHHQUHVROYHGLQFRQVXOWDWLRQZLWK5%,DQG13&,

,QDXJDUDWLRQRI7UDLQLQJRQ'LJLWDO3D\PHQW,QLWLDWLYHVE\6KUL5DYL6KDQNDU3UDVDG


 $QQXDO5HSRUW

L ¶2QOLQH$VVHVVPHQWDQG(YDOXDWLRQ6\VWHP  7KH REMHFWLYHV DUH WR HVWLPDWH WKH RQOLQH

2$(6  IRU 1DWLRQDO /HYHO &HUWLÀFDWLRQ OHDUQHUV SURÀFLHQF\EDVHGRQWKHLUQDYLJDWLRQ 
([DPLQDWLRQV·E\,,,7%DQJDORUHMRLQWO\ZLWK VHDUFK KLVWRU\ WR VRUW DQG SULRULWL]H VHDUFK
1,(/,71HZ'HOKL UHVXOWV LQ WKH OHDUQLQJ FRQWHQWV WUDFNLQJ WKH
 7KH REMHFWLYHV DUH WR FUHDWH LWHP EDQNV VHDUFKLQJ SURFHVV LQ D FRQWHQW SDUWLFXODU IRU
GHYHORSPHQWRIHYDOXDWLRQPHWKRGVDQGRQOLQH OHDUQHUV LPSURYH VHDUFK HQJLQH SHUIRUPDQFH
DVVHVVPHQWDQGHYDOXDWLRQV\VWHP 2$(6 2 DQG WR LQFUHDVH XVHU RQOLQH OHDUQHUV 
/HYHOSURJUDPRI1,(/,7KDVEHHQSURSRVHGDV VDWLVIDFWLRQ
WKHEDVLVIRUFUHDWLRQRILWHPEDQNVDORQJZLWKD  7KH H[SHFWHG RXWFRPH RI WKH SURMHFW LV WR
VXLWDEOH VRIWZDUH SODWIRUP WR FRQGXFW RQOLQH GHYHORS WKH FRQWHQW LQ QHZ IRUPDW IRU ÀYH
H[DPLQDWLRQV ZKLFK ZLOO KHOS LQ RQOLQH FRXUVHVZKLFKFDQEHXVHGSURÀOHGHSHQGHQW
HYDOXDWLRQRIVWXGHQWV·SHUIRUPDQFH OHDUQLQJH[SHULHQFHWKURXJK%ULKDVSDWL/06
 7KH H[SHFWHG RXWFRPH RI WKH SURMHFW LV WR 7KHVRXUFHFRGHIRUWKHSURSRVHGPRGXOHRIWKH
GHYHORSLWHPEDQNV LWHPVSHUFRXUVH IRU %ULKDVSDWL VKDOO EH UHOHDVHG LQ RSHQ VRXUFH
WKHHLJKW2/HYHOFRXUVHVZLWKFXPXODWLYHVXP DORQJZLWK%ULKDVSDWL7KHSURMHFWGXUDWLRQLV
RILWHPVDFURVVDOOWKHFRXUVHV,QDGGLWLRQ \HDUV LQFOXGLQJ H[WHQVLRQ RI  \HDU ZLWK WRWDO
RQOLQHHYDOXDWLRQRIVWXGHQWV·SHUIRUPDQFHZLOO RXWOD\RI,15/DNKV
DOVR EH GRQH DJDLQVW DOO WKH LWHPV LQ WKH LWHP  2YHUDOODUFKLWHFWXUHRIWKHV\VWHPZLWKLWVOD\RXW
EDQN)XUWKHUDVRIWZDUHSODWIRUPZLOODOVREH DQG LQFRUSRUDWLQJ ZLWK %ULKDVSDWL SODWIRUP
GHYHORSHGWKDWZLOOHQDEOHDQ\DJHQF\WRGHVLJQ KDV EHHQ FRPSOHWHG 7KH KRPHSDJH RI WKH
DQG FRQGXFW RQOLQH H[DPLQDWLRQ DQG WKHUHE\ ZHEVLWHKDVOLQNVIRUUHJLVWUDWLRQVLJQXSDQG
HYDOXDWHWKHVWXGHQWV·SHUIRUPDQFH7KHSURMHFW VLJQLQOLQNIRUVWXGHQWVDQGDVHSDUDWHVHFWLRQ
GXUDWLRQ LV  PRQWKV LQFOXGLQJ  PRQWKV IRU WKH YDULRXV DGPLQLVWUDWRUV 7KH VWXGHQW
H[WHQVLRQZLWKWRWDORXWOD\RI,15/DNKV VHFWLRQRIWKHSURMHFWKDVEHHQEXLOW7KHV\VWHP
 $OO IRXU PRGXOHV QDPHO\ ,WHP $XWKRULQJ DV GHVFULEHG DERYH LV ZRUNLQJ ZHOO &XUUHQWO\
PRGXOH $VVHVVPHQW ,QVWUXPHQW *HQHUDWLRQ ÀYH FRXUVHV ¶2SHUDWLQJ 6\VWHP· ¶'DWD
PRGXOH ([DP PRGXOH DQG (YDOXDWLRQ PRGXOH 6WUXFWXUHV· ¶7KHRU\ RI &RPSXWHU 6FLHQFH·
KDYHEHHQFRPSOHWHG4XHVWLRQEDQNRIDSSUR[ ¶,OOXPLQDWLRQ (QJLQHHULQJ· DQG ¶,QWURGXFWLRQ WR
 TXHVWLRQV WRWDO  W\SHV  KDV DOVR EHHQ (OHFWULFDO (QJLQHHULQJ· KDYH EHHQ FRPSOHWHG
FRPSOHWHG 7ZR PRFN H[DPLQDWLRQV ZHUH DQGRWKHUVDUHLQSURFHVV
VXFFHVVIXOO\FRQGXFWHGE\,,,7%DQJDORUHRQWKHLU LLL ¶6HWWLQJXS,&7(/HDUQLQJ&HQWUHVLQ
VHUYHUVIRUWKHVWXGHQWV6DPHLVWREHFRPSOHWHG VFKRROV LQ 6ULNDNXODP GLVWULFW RI $QGKUD
E\1,(/,7DOVRRQ1,(/,7VHUYHUVIRUWKHLUVWXGHQWV 3UDGHVK·E\(51(7,QGLD
IRUZKLFKVHUYHUVHWXSLVLQSURFHVV  7KHREMHFWLYHLVWRVHWXSH/HDUQLQJ,&7FHQWHUV
LL ¶ ' H Y H O R S P H Q W  R I  3H U V R Q D O L ] H G  D Q G LQ  KLJK VFKRROV LQ UXUDO DQG WULEDO DUHD RI
3HUIRUPDQFH EDVHG (/HDUQLQJ WRRO IRU GLVWULFW6ULNDNXODPWRLQWHJUDWH,&7IRUOHDUQLQJ
H[LVWLQJHUHVRXUFHV·E\1,7'XUJDSXUMRLQWO\ DQGWHDFKLQJWRLPSURYHOHDUQLQJRXWFRPHVRI
ZLWK%DQQDUL$PPDQ,QVWLWXWHRI7HFKQRORJ\ UXUDODQGWULEDOFKLOGUHQ
(URGH'LVWULFW7DPLO1DGXDQG,,7.DQSXU  7KH H[SHFWHG RXWFRPH GHOLYHUDEOHV RI WKH


0LQLVWU\RI(OHFWURQLFV ,QIRUPDWLRQ7HFKQRORJ\ 0HLW<

SURMHFWLVWRVHWWLQJXS,&7&HQWHUVLQVFKRROVLQ PRUH IHDWXUHV DQG UHPRYH DOO NLQGV RI EXJV

UXUDO DQG WULEDO DUHD RI 6ULNDNXODP DQG WR 7RWDOGXUDWLRQRIWKHSURMHFWLV\HDUVZLWKWRWDO
GHYHORSGLJLWDOFRQWHQWRI6FLHQFH0DWKVDQG RXWOD\RI,15ODNKV
(QJOLVKLQ7HOJXDQG(QJOLVKODQJXDJHPDSSHG  7KHVHUYHUDFFHVVDW1.1GDWDFHQWHUKDVEHHQ
ZLWK $QGKUD (GXFDWLRQ FXUULFXOXP DQG PDNH UHFHLYHGDQGZLWKWKLVQRZWKHLQVWDOODWLRQDQG
DYDLODEOH WR UXUDO DQG WULEDO VWXGHQWV HTXLWDEO\ WUDQVIHURIFXUUHQWXVHUGDWDIRU%ULKDVSDWLKDV
DQGXQLIRUPO\,WLVH[SHFWHGWKDWDSSUR[ EHHQ FRPSOHWHG 7KH VHUYLFHV DUH XS DQG
VWXGHQWVZRXOGEHEHQHÀWHGWKURXJKWKHXVHRI UXQQLQJ)HZPRUHLQVWLWXWHVKDYHEHHQDGGHG
H/HDUQLQJ,&7GHSOR\PHQWLQWKHUXUDODQGWULEDO 6HUYHU IURP 1.1 'DWD FHQWUH ZDV HDUOLHU
DUHDRI6ULNDNXODP7RWDOGXUDWLRQRIWKHSURMHFW DFFHVVLEOHIURPWKHQHWZRUNRI1,&QHW(51(7
LV\HDUVZLWKWRWDORXWOD\RI,15FURUHV DQG1.1RQO\$IWHUFRQWLQXRXVIROORZXSZLWK
 7KH LQVWDOODWLRQ DQG LQWHJUDWLRQ RI ,&7 1.1QRZLWLVDFFHVVLEOHIURPDQ\ZKHUHLQWKH
HTXLSPHQWV KDYH EHHQ FRPSOHWHG LQ DOO  ZRUOG ,Q DGGLWLRQ %*$6 %ULKDVSDWL *HQHUDO
VFKRROVZKLFKDUHRSHUDWLRQDODQGIXQFWLRQDO $FFRXQWLQJ 6\VWHP  KDV EHHQ SURYLVLRQHG IRU
,QDGGLWLRQHFRQWHQWKDVDOVREHHQKRVWHGRQ -18 1DWLRQDO %RRN 7UXVW HWF RQ WKH VDPH
RQHFRPSXWHULQHDFKODEDQGÀUVWOHYHOWUDLQLQJ VHUYHU$VRQ1RYWKHUHDUHWRWDO
KDV DOVR EHHQ FRPSOHWHG :RUN UHODWHG WR ,QVWLWXWLRQDO$FFRXQWV&RXUVHDUHDVDQG
FRQQHFWLYLW\ DQG DGYDQFH OHYHO WUDLQLQJ RI  XVHU DFFRXQWV DW %ULKDVSDWL 0DQ\
WHDFKHUVLVLQSURFHVV ZRUNVKRSVKDYHDOVREHHQRUJDQL]HGIRUXVHU
LY ¶ ' H S O R \ P H Q W  D Q G  P D Q D J H P H Q W  R I LQVWLWXWHV LQ RUGHU WR SRSXODUL]H %ULKDVSDWL
%ULKDVSDWLVHUYLFHVRYHU1.1IRU,QGLDQ XVDJH
$FDGHPLD·E\,,7.DQSXU Y ¶(QKDQFLQJ WKH RXWUHDFK RI (OHFWURQLF
 0DMRU REMHFWLYH RI WKH SURMHFW LV WR PDNH 6\VWHP 'HVLJQ DQG 7UDLQLQJ WKURXJK
LQVWDOODWLRQV RQ WKH VHUYHUV GHSOR\HG LQ 1.1 HOHDUQLQJ·E\&'$&12,'$
QHWZRUNDQGWRPDLQWDLQDQGXSJUDGHWKHPZLWK  7KHPDLQREMHFWLYHRIWKLVSURMHFWLVWRGHYHORS
HYHU\ QHZ SDWFK DQG YHUVLRQ EHLQJ UHOHDVHG ORZ FRVW HGXFDWLRQDO NLWV DQG WR HGXFDWH DQG
7KHDFDGHPLFLQVWLWXWHVZKLFKDUHVXEVFULELQJ SURYLGH WUDLQLQJ LQ WKH DUHDV RI (PEHGGHG
WR1.1FRQQHFWLYLW\ZLOOJHWYHU\JRRGUHOLDEOH 6\VWHP 'HVLJQ (6'  'HVLJQLQJ XVLQJ )LHOG
DFFHVV WR WKH VHUYLFHV RI %ULKDVSDWL DQG LWV 3URJUDPPDEOH *DWH $UUD\ )3*$  DQG 'LJLWDO
XSJUDGHG YHUVLRQV $OO RWKHU VHUYLFHV 6LJQDO3URFHVVLQJ%RWKKDQGVRQDQGWUDLQLQJ
GHYHORSHG LQ RSHQ VRXUFH ZKLFK DUH EHLQJ WKURXJKHOHDUQLQJZLOOEHRUJDQL]HGSHULRGLFDOO\
LQWHJUDWHG ZLWK %ULKDVSDWL ZLOO DOVR EH WKURXJKRXWWKHSURMHFWGXUDWLRQ
GHSOR\HGDQGPDQDJHG  7KH H[SHFWHG RXWFRPH GHOLYHUDEOHV RI WKH
 7KH H[SHFWHG RXWFRPH RI WKH SURMHFW LV WR SURMHFW LV WR GHYHORS HGXFDWLRQDO NLWV IRU
GHSOR\%ULKDVSDWLVHUYLFHVDQGDOOLHGVHUYLFHV SHUIRUPLQJ ODE DORQJ ZLWK XVHU PDQXDOV WR
RQ1.17KHH[SHULHQFHRIWKHGHSOR\PHQWDQG SHUIRUP H[SHULPHQWV 3URMHFW ZLOO JHQHUDWH
U X Q Q L Q J  % U L K D V S D W L   V H U Y L F H V  V K D O O  E H WUDLQHG IDFXOWLHV VWXGHQWV DQG RWKHU
SDUWLFLSDQWV LQ GLIIHUHQW DUHDV RI (OHFWURQLF
GRFXPHQWHG 7KH IHHGEDFN IURP WKH VHUYLFHV
6 \ V W H P V   )X U W K H U P R U H   W K H  G H V L J Q  
ZLOOEHXVHGLQWKHGHYHORSPHQWSURFHVVWRDGG


 $QQXDO5HSRUW

GHYHORSPHQW RI ERDUGV DQG WUDLQLQJ XVLQJ WHDFKLQJ DQG OHDUQLQJ H[SHULHQFH LQ ODUJH
GLIIHUHQW NLWV ZLOO HQKDQFH WKH NQRZOHGJHEDVH FODVVURRP·E\,,7*XZDKDWL
IRU FRPPHUFLDO SURGXFWLRQ RI HOHFWURQLF  2EMHFWLYHV RI WKH SURMHFW DUH WR GHYHORS WKH
V\VWHPV$ERXWSDUWLFLSDQWVDUHH[SHFWHG IUDPHZRUNDQGLQWHUIDFHWRGHOLYHUWKHOHFWXUHRQ
WR EH WUDLQHG WKURXJK WKH 7UDLQLQJ 3URJUDPV WKHGLYHUVHSRUWDEOHFRPSXWLQJGHYLFHVFDUULHG
FRQGXFWHG DW &'$& 12,'$ $GGLWLRQDOO\ E\WKHVWXGHQWVDQGIRULQWHUDFWLRQEHWZHHQWKH
EDVHG RQ DQ DYHUDJH UHJLVWUDWLRQ RI DERXW  WHDFKHUDQGWKHVWXGHQWVERWKLQWKHFODVVDQG
SDUWLFLSDQWVSHU0RGXOHDERXWSDUWLFLSDQWV RXWVLGHWKHFODVV,QDGGLWLRQWKHSURMHFWDOVR
ZLOOEHWUDLQHGXVLQJWKHHOHDUQLQJ0RGH7RWDO DLPVWRGHYHORSDIUDPHZRUNDQGLQWHUIDFHIRU
GXUDWLRQ RI WKH SURMHFW LV  õ \HDUV LQFOXGLQJ H[DPLQDWLRQ PDQDJHPHQW FRQGXFW DQG
H[WHQVLRQRIPRQWKVZLWKEXGJHWRXWOD\RI,15 HYDOXDWH VKRUW H[DPV TXL]]HV KRPH
ODNKV DVVLJQPHQWV 
 /LVW RI H[SHULPHQWV UHODWHG WR 'LJLWDO /RJLF  7KH H[SHFWHG RXWFRPH RI WKH SURMHFW LV WR
'HVLJQKDVEHHQSUHSDUHGDIWHUUHYLHZLQJWKH GHYHORS D IUDPHZRUN IRU DQ ,&7EDVHG ODUJH
V\OODEXVRIVRPHXQLYHUVLWLHVLQDEUDLQVWRUPLQJ FODVVURRPPDQDJHPHQWV\VWHPIRUDXWRPDWLF
ZRUNVKRS :RUN UHODWHG WR )3*$ ERDUG KDV FROOHFWLRQRIDWWHQGDQFHDQGVFDODEOHIRUUHDO
EHHQ FRPSOHWHG 2QH KDQGVRQ ZRUNVKRS RQ WLPH GHOLYHU\ RI OHFWXUH FRQWHQW VOLGHV DQG
)3*$ERDUGZDVFRQGXFWHGRQ-XQHLQ YRLFH WRVWXGHQWVDQGV\QFKURQL]DWLRQEHWZHHQ
ZKLFK DURXQG  SDUWLFLSDQWV IURP YDULRXV PRELOH GHYLFHV LQ WKH FODVVURRP HJ VPDUW
LQVWLWXWLRQVSDUWLFLSDWHGDQGSURYLGHGIHHGEDFN SKRQHV WDEOHWV DQG ODSWRS  7KLV V\VWHP ZLOO
HFRQWHQW IRU )3*$ ERDUG KDV DOVR EHHQ HQDEOH SHUVRQDOL]HG LQWHUDFWLRQ EHWZHHQ WKH
G H Y H O R S H G   Z K L F K  L Q F O X G H  V L P X O D W L Y H
WHDFKHU DQG VWXGHQWV DQG DOVR IDFLOLWDWH WR
H[SODQDWLRQ RI WKH H[SHULPHQWV WKHRUHWLFDO
FRQGXFW DQG HYDOXDWH VKRUW H[DPV 7RWDO
H[SODQDWLRQRIWKHVWHSE\VWHSSURFHGXUHRIWKH
GXUDWLRQRIWKHSURMHFWLVõ\HDUVLQFOXGLQJ
H[SHULPHQWDQGOLYHYLGHRGHPRQVWUDWLRQRIWKH
PRQWKV H[WHQVLRQ ZLWK EXGJHW RXWOD\ RI ,15
H[SHULPHQW )RU '63 ERDUG SURJUDPPHU WR
ODNKV
SURJUDP WKH &RPSOH[ 3URJUDPPDEOH /RJLF
'HYLFH &3/' LVEHLQJWHVWHGDQGSURJUDPWR  $ V  I D U  D V  S U R J U H V V  L V  F R Q F H U Q H G   D Q
DFFHVVVWRUH WKH GDWD IURP 63, WKH PHPRU\ DXWKHQWLFDWLRQ ORJLQ V\VWHP IRU LQVWUXFWRU DQG
ORFDWLRQ XVLQJ '0$ LV EHLQJ GHYHORSHG ,Q VWXGHQWVKDVEHHQSUHSDUHG$IWHUDXWKHQWLFDWHG
DGGLWLRQSURJUDPWRVHWWKHFORFNRIWKH&RGHF ORJLQ VHSDUDWH LQWHUIDFH IRU LQVWUXFWRU DQG
KDVEHHQFRPSOHWHGZKLOHODEPDQXDOIRU'63 VWXGHQW LV GLVSOD\HG 9DULRXV SDQHOV QDPHO\
ERDUGVLVLQSURFHVV3URWRW\SHRI'63ERDUGV ÀOHV TXHULHV DWWHQGDQFH DQG DXGLR DOVR
ZLWKFHUWDLQPRGLÀFDWLRQVLVEHLQJSUHSDUHGDQG LPSOHPHQWHG )XUWKHU D V\VWHP KDV EHHQ
3&% LV UHDG\  )RU (6' ERDUGV V\OODEXV IRU GHYHORSHG IRU SHUVRQDOL]HG OHFWXUH GHOLYHU\ LQ
ERDUGVKDVEHHQSUHSDUHGDIWHUUHYLHZLQJ ZKLFKVOLGHVDUHEHLQJVKDUHGE\WKHLQVWUXFWRU
V\OODEXV RI YDULRXV 8QLYHUVLWLHV HOHDUQLQJ DQG DUH YLHZHG LQ WKH VWXGHQWV· GHYLFHV
SRUWDODQGFRQWHQWGHYHORSPHQWLVLQSURJUHVVLQ
LQVWDQWDQHRXVO\ZLWKRXWDQ\HIIRUWV7KHV\VWHP
RUGHUWRSURYLGHFRPSOHWH/06VROXWLRQWRWKH
GHYHORSHG KDV DSSOLFDWLRQV WKDW HQDEOH WKH
VWXGHQWVLQWKHDERYHWKUHHDUHDV
LQVWUXFWRU WR FUHDWH WKH FRQWHQW RI WKH
YL ¶ ,&7EDVHG IUDPHZRUN WR HQKDQFH WKH H[DPLQDWLRQ $IWHUZDUGV D QRYLFH DQG EDVLF


0LQLVWU\RI(OHFWURQLFV ,QIRUPDWLRQ7HFKQRORJ\ 0HLW<

PRGHORIDWWHQGDQFHFROOHFWLQJDQGPRQLWRULQJ EHLQJ PRQLWRUHG UHJXODUO\ DQG UHVSRQGHG E\

V\VWHPDQGH[DPLQDWLRQV\VWHPKDYHDOVREHHQ WHDPVDW&'$&0XPEDLDQG$PULWD8QLYHUVLW\
G H Y H O R S H G   7Z R  Z R U N V K R S V  R Q  W K H 7UDLQLQJ KDV EHHQ SURYLGHG WR  &%6(
GHPRQVWUDWLRQ RI WKH GHYHORSHG V\VWHP VFKRROWHDFKHUVFRYHULQJ&%6(VFKRROV
¶$YDERGKDND·KDYHDOVREHHQFRQGXFWHGDW6W XSWR1RY3URFHVVIRUWKLUGSDUW\ &
(GPXQGV&ROOHJH6KLOORQJDQG&HQWUDO,QVWLWXWH '$&+\GHUDEDG VHFXULW\DXGLWKDVDOVREHHQ
RI 7HFKQRORJ\ .RNUDMKDU ZKHUH WKH V\VWHP LQLWLDWHGE\WKHLPSOHPHQWLQJDJHQF\
SHUIRUPHGZLWKRXWDQ\DQRPDO\8VHUVVHHPHG  7HFKQRORJ\ 'HYHORSPHQW IRU ,QGLDQ
WREHVDWLVÀHGZLWKDOOWKHPRGXOHVRIWKHV\VWHP /DQJXDJH 7',/
DQGZHUHLQWHUHVWHGWRXVHWKHV\VWHPLQWKHLU
3HRSOH DUH PRUH FRPIRUWDEOH LQ XVLQJ WKH ,&7
LQVWLWXWHVDVHYLGHQWIURPWKHIHHGEDFN
WHFKQRORJ\ LQ WKHLU PRWKHU WRQJXH ´7HFKQRORJ\
YLL  ¶5ROORXW RI 2/DEV· E\ &'$& 0XPEDL 'HYHORSPHQWIRU,QGLDQ/DQJXDJHµSURJUDPPHRI
MRLQWO\ ZLWK $PULWD 9LVKZD 9LG\DSHHWKDP 0HLW<LVEULQJLQJWKHLQIRUPDWLRQSURFHVVLQJWRROV
.ROODP.HUDOD DQGPRGHUQWHFKQRORJLHVLQORFDOODQJXDJHV
 0DMRU REMHFWLYHV RI WKH SURMHFW DUH WR FUHDWH 7',/3URJUDPPH
LQIUDVWUXFWXUDO DQG VXSSRUW IUDPHZRUN IRU
7KHPDMRUREMHFWLYHVRIWKH7',/SURJUDPPHDUH
PDNLQJ 2/DEV RQOLQH ODEV IRU VFKRROV 
DFFHVVLEOH DQG XVDEOH E\ VWXGHQWV DQG ‡ 7R GHYHORS LQIRUPDWLRQ SURFHVVLQJ WRROV WR
WHDFKHUVDFURVV,QGLDDQGWRWUDLQDSSUR[LPDWHO\ IDFLOLWDWH KXPDQ PDFKLQH LQWHUDFWLRQ LQ ,QGLDQ
WHDFKHUVDFURVV,QGLDLQHIIHFWLYHXVHRI O D Q J X D J H V  D Q G  W R  F U H D W H  D Q G  D F F H V V
2/DEV UHVRXUFHV WR HQKDQFH WKH WHDFKLQJ PXOWLOLQJXDONQRZOHGJHUHVRXUFHVFRQWHQW
OHDUQLQJH[SHULHQFH ‡ 7RSURPRWHWKHXVHRILQIRUPDWLRQSURFHVVLQJ
 7KHH[SHFWHGRXWFRPHRIWKHSURMHFWLVWRKRVW WRROVIRUODQJXDJHVWXGLHVDQGUHVHDUFK
WKH FRQWHQW UHODWHG WR 2/DEV RQ 1.1 DQG WR ‡ 7RFRQVROLGDWHWKHGHYHORSHG,QGLDQODQJXDJH
SURYLGHWUDLQLQJWRWHDFKHUVLQ\HDUV  WHFKQRORJLHVLQWRLQQRYDWLYHXVHUSURGXFWVDQG
WHDFKHUV IURP HDFK VFKRRO RXW RI WRWDO DERXW VHUYLFHV
 &%6( VFKRROV  7RWDO GXUDWLRQ RI WKH
‡ 7R SURPRWH FROODERUDWLYH GHYHORSPHQW RI
SURMHFW LV  \HDUV ZLWK EXGJHW RXWOD\ RI ,15
ODNKV IXWXULVWLF WHFKQRORJLHV OHDGLQJ WR LQQRYDWLYH
SURGXFWVDQGVHUYLFHV
 'XULQJ ¶*RRG *RYHUQDQFH 'D\· RQ 'HF 
 +RQ·EOH 0LQLVWHU RI &RPPXQLFDWLRQV  )RFXV$UHDV
,QIRUPDWLRQ 7HFKQRORJ\ KDG ODXQFKHG 2/DEV 'HYHORSPHQW RI WHFKQRORJLHV LQ PXOWLOLQJXDO
IRU&%6(VFKRROV FRPSXWLQJ DUHDV LQYROYHV LQWHQVLYH LQGLJHQRXV
 5HJDUGLQJ UHVRXUFH PDWHULDO VOLGHV FRYHULQJ 5 ' HIIRUWV GXH WR PXOWLSOLFLW\ DQG FRPSOH[LW\ RI
WKH FRQFHSW VWDWXV DQG KRZ WR XVH DUH ,QGLDQ ODQJXDJHV 7KH IRFXV DUHDV RI WKH 7',/
DYDLODEOHDQGEHLQJXVHGDORQJZLWKVKRUWYLGHR SURJUDPPHDUHEURDGO\GLYLGHGLQWRWKHIROORZLQJ
FRYHULQJ LQWURGXFWLRQ WR 2ODEV DQG ERRWDEOH GRPDLQV
'9' ,Q DGGLWLRQ D KHOSGHVN KDV DOVR EHHQ ‡ 0DFKLQH7UDQVODWLRQ6\VWHPV
HVWDEOLVKHG LQ ZKLFK TXHULHV RYHU HPDLOV DUH ‡ 7H[WWR6SHHFK6\VWHPV


 $QQXDO5HSRUW

‡ 6SHHFK5HFRJQLWLRQ6\VWHPV 776 LQWHJUDWHGZLWKVFUHHQUHDGHU LQ

‡ 2SWLFDO&KDUDFWHU5HFRJQLWLRQ6\VWHPV ,QGLDQ/DQJXDJHV

‡ &URVV/LQJXDO,QIRUPDWLRQ$FFHVVDQG5HWULHYDO   8QGHUWKHFRQVRUWLXPPRGHSURMHFW7H[WWR
6SHHFK 6\VWHP IRU  ,QGLDQ /DQJXDJHV
‡ 'HYHORSPHQW RI /LQJXLVWLF 5HVRXUFHV WR
QDPHO\ +LQGL %HQJDOL 0DUDWKL 7DPLO
IDFLOLWDWH VSHHG\ GHYHORSPHQW RI /DQJXDJH
7HOXJX 0DOD\DODP *XMDUDWL 2GLD
7HFKQRORJLHV $VVDPHVH0DQLSXUL .DQQDGDKDYHEHHQ
‡ 7RROV IRU /DQJXDJH 3URFHVVLQJ DQG :HE GHYHORSHG XVLQJ IXOO\ 2SHQ 6RXUFH
'HYHORSPHQW HQJLQHV
‡ /RFDOL]DWLRQ   7HFKQRORJ\ 7UDQVIHU  DQG  7 76
‡ /DQJXDJH7HFKQRORJ\6WDQGDUGL]DWLRQ LQWHJUDWLRQZLWK0RELOHGHYLFHV
$FKLHYHPHQWV   ‡ ,QWHJUDWLRQRI776LQ0RELOH'HYLFHVZLOO
HQDEOH ODUJH VHFWLRQ RI WKH VRFLHW\
‡ 1DWLRQDO5ROO2XW3ODQ
SDUWLFXODUO\ UXUDO DQG 7LUH  7LHU
 )UHHODQJXDJH&'VFRQWDLQLQJYDULRXVVRIWZDUH &LWLHVWRKDYHYRLFHVEDVHGLQIRUPDWLRQ
WRROV OLNH /LEUH 2IÀFH 2SHQ 7\SH )RQWV $FFHVVLQ,QGLDQ/DQJXDJHV
.H\ERDUG 'ULYHUV )LUHIR[ :HE %URZVHU (
  ‡ 028 KDV EHHQ VLJQHG ZLWK 26 /DEV
PDLOLQJ&OLHQWHWFKDYHEHHQUHOHDVHGIRUSXEOLF ,QGLD3YW/WGIRULQWHJUDWLRQRIWKH776LQ
XVHIRUDOOFRQVWLWXWLRQDOO\UHFRJQL]HG,QGLDQ  ,QGLDQ ODQJXDJHV LQ $QGURLG EDVHG
ODQJXDJHVWRIDFLOLWDWHFRPPRQSHRSOHWRZRUN 5HJLRQDO2SHUDWLQJ6\VWHP,1'8626
LQWKHLUODQJXDJHV VR WKDW WKH VDPH PD\ EH DYDLODEOH LQ
 7KHVH VRIWZDUH WRROV DQG IRQWV DUH XVHIXO IRU 0RELOH:LUHOHVVGHYLFHV
2IÀFH SURGXFWLYLW\ DSSOLFDWLRQV DQG HFRQWHQW   ‡ 776 KDV EHHQ VXFFHVVIXOO\ LQWHJUDWHG
GHYHORSPHQW7KHVHVRIWZDUHWRROVDQG&'VDUH ZLWK,1'8626DQGKDVFXUUHQWO\PDGH
EHLQJ XVHG E\ GLIIHUHQW 368V %DQNV DYDLODEOHLQPRGHOVRI,QGLDQ0RELOH
(GXFDWLRQDO,QVWLWXWLRQVHWF7KHQHZ&'VDUH 0DQXIDFWXUHV QDPHO\ 0LFURPD[
FRPSDWLEOHZLWKZLQDQG8EXQWX$V 6ZLSH &HO.RQ  DQG .DUERQQ 7KH
RQ GDWH DERXW  ODNK &'V KDYH EHHQ PRGHOVZRXOGEHODXQFKHGLQPDUNHW
GLVWULEXWHGDQGWKHUHKDVEHHQDERXWFURUH   ‡ 776 6\VWHPV IRU 606 $SSOLFDWLRQ
GRZQORDGV 7KHVH VRIWZDUH WRROV FDQ DOVR EH :KDWV$SS(PDLOVDQG:HE%URZVHULQ
GRZQORDGHGIUHHIURPKWWSZZZLOGFLQ PRELOH GHYLFHV KDV EHHQ PDGH LQ 
‡ 7HFKQRORJ\'HYHORSPHQW ,QGLDQ ODQJXDJHV QDPHO\ +LQGL
*XMDUDWL 0DUDWKL 0DOD\DODP 7DPLO
 0DQ\WRROVDQGWHFKQRORJLHVGHYHORSHGGXULQJ
7HOXJXDQG%HQJDOL
WKH \HDU KDYH EHHQ UHOHDVHG IRU SXEOLF XVH
7KHVH DUH PDGH DYDLODEOH DW WKH 7',/ 'DWD ‡ 2WKHU'HSOR\PHQW,QLWLDWLYHV
&HQWUH SRUWDO KWWSWGLOGFLQ6RPH RI WKH   %URZVHU3OXJLQ
LPSRUWDQWWRROVDQGWHFKQRORJLHVDUHDVIROORZV   7H[WWR6SHHFKV\VWHPVDVDEURZVHUSOXJ
‡ 7H[W7R6SHHFK 776 LQ,QGLDQ/DQJXDJHV LQIRU0R]LOODDQG&KURPH%URZVHUIRUHLJKW
  'HYHORSPHQWRI7H[WWR6SHHFK6\VWHP ,QGLDQ /DQJXDJHV QDPHO\ +LQGL %HQJDOL


0LQLVWU\RI(OHFWURQLFV ,QIRUPDWLRQ7HFKQRORJ\ 0HLW<

0DUDWKL 7DPLO 7HOXJX 0DOD\DODP 2GLD 7HOXJX 7DPLO+LQGL +LQGL7DPLO 7HOXJX+LQGL

DQG *XMDUDWL ODQJXDJHV KDYH EHHQ PDGH 7HOXJX7DPLODQG8UGX+LQGL KDYHEHHQPDGH
DYDLODEOH WKURXJK 7',/ 'DWD FHQWUH DYDLODEOHRQWGLOGDWDFHQWUHZHEVLWHZZZWGLO
KWWSZZZWGLOGFLQ 7KH %URZVHU 3OXJLQ GFLQDQG*R,0HJKUDM&ORXG,QIUDVWUXFWXUHIRU
KDV DOVR EHHQ GHSOR\HG LQ WKH IROORZLQJ IDVWHUDFFHVV
DSSOLFDWLRQV ‡ 2SWLFDO &KDUDFWHU 5HFRJQLWLRQ LQ ,QGLDQ
  ‡ 9LNDVSHGLD SRUWDO KWWSYLNDVSHGLDLQ  /DQJXDJHV
,QGLDQ/DQJXDJHV  2SWLFDO &KDUDFWHU 5HFRJQLWLRQ IRU  ,QGLDQ
  ‡ H 6 K D N W L  S R U W D O  R I  1 $ % $ 5 '  ² ODQJXDJHV QDPHO\ %HQJDOL 'HYDQDJDUL
KWWSHVKDNWLQDEDUGRUJ²+LQGL7DPLO *XUXPXNKL .DQQDGD 0DOD\DODP 7HOXJX
7DPLO $VVDPHVH DQG 8UGX ODQJXDJHV KDYH
  ‡ 3 U D W H H N  9 H Q W X U H V   + \ G H U D E D G
EHHQPDGHDYDLODEOHWKURXJK7',/'DWD&HQWUH
KWWSSUDWLNYHQWXUHVFRP ²+LQGL
KWWSZZZWGLOGFLQ 2&5V IRU VHYHQ ,QGLDQ
7HOXJXDQG(QJOLVKYRLFHV
/DQJXDJHV QDPHO\ $VVDPHVH %DQJOD
‡ $XWRPDWLF6SHHFK5HFRJQLWLRQ $65
*XUXPXNKL'HYDQDJDUL.DQQDGD0DOD\DODP
 $XWRPDWLF 6SHHFK 5HFRJQLWLRQ $65  IRU 7DPLO KDYH EHHQ WHVWHG IRU LQFOXVLRQ LQ
$JULFXOWXUDO &RPPRGLW\ SULFHV IRU  ,QGLDQ UHVSHFWLYH ODQJXDJH &'V DQG XSGDWHG EL
/DQJXDJHV GHYHORSHG QDPHO\ +LQGL %HQJDOL OLQJXDO*8,KDVEHHQLQWHJUDWHG
$VVDPHVH7DPLO7HOXJXDQG0DUDWKLKDYHEHHQ
‡ 2QOLQH +DQGZULWLQJ UHFRJQLWLRQ V\VWHP
GHYHORSHG 7KH V\VWHPV ZRXOG DFW DV YRLFH
2+:5 
L Q W H U I D F H  I R U  1 , &  $ J P D U N Q H W  S R U W D O
KWWSZZZDJPDUNQHWQLFLQ   $OSKDYHUVLRQ2QOLQH+DQGZULWLQJ5HFRJQLWLRQ
 3LORW GHSOR\PHQW HIIRUW LQ FROODERUDWLRQ ZLWK LQ  ,QGLDQ /DQJXDJHV QDPHO\ +LQGL %HQJDOL
0LQLVWU\RI$JULFXOWXUHKDVEHHQLQLWLDWHGIRU$65 7DPLO7HOXJX.DQQDGD0DOD\DODP$VVDPHVH
V\VWHP LQ 0DUDWKL DQG 7DPLO ODQJXDJHV IRU DQG3XQMDELODQJXDJHVKDYHEHHQGHYHORSHG
0DKDUDVKWUD DQG 7DPLO 1DGX VWDWHV  6SHHFK 7KHVHWHFKQRORJLHVKDYHDOVREHHQSDFNDJHG
5 H F R J Q L W L R Q  6 \ V W H P V  I R U  D J U L F X O W X U D O DV´6PDUW,QSXW3DQHOVµIRUGDWDHQWU\LQWRDQ\
FRPPRGLW\ SULFHV DQG ZHDWKHU LQIRUPDWLRQ DFWLYH VRIWZDUH SURJUDPPH  ZLWKRXW XVH RI
V\VWHPIRUPRUH,QGLDQODQJXDJHVGLDOHFWV NH\ERDUGDQGPDGHDYDLODEOHIRU$QGURLGDQG
KDYHEHHQLQLWLDWHG ZLQGRZVWKURXJKWGLOGFLQSRUWDO
‡ 0DFKLQH 7UDQVODWLRQ 6\VWHPV 0DFKLQH ‡ &URVV/LQJXDO,QIRUPDWLRQ$FFHVV &/,$
7UDQVODWLRQ V\VWHPV IRU  ODQJXDJH SDLUV  %HWD9HUVLRQRI0RQROLQJXDO6HDUFK(QJLQHVIRU
(QJOLVKWR,QGLDQODQJXDJHVSDLUV(QJOLVKWR 7RXULVP 'RPDLQ IRU  ,QGLDQ /DQJXDJHV
$VVDPHVH %HQJDOL %RGR *XMDUDWL +LQGL 6DQGKDQ ²+LQGL%HQJDOL0DUDWKL7DPLODQG
0DOD\DODP 0DUDWKL 1HSDOL 2GLD 3XQMDEL 7HOXJX KDV EHHQ UHOHDVHG LQ SXEOLF GRPDLQ
7DPLO7HOXJXDQG8UGX DQG,QGLDQ/DQJXDJHV
7KH &URVVOLQJXDO ,QIRUPDWLRQ $FFHVV V\VWHP
WR ,QGLDQ /DQJXDJHV  SDLUV +LQGL%HQJDOL
IRU  ,QGLDQ /DQJXDJHV KDV EHHQ KRVWHG RQ
%HQJDOL+LQGL.DQQDGD+LQGL+LQGL.DQQDGD
7',/'DWDFHQWUHKWWSZZZWGLOGFLQDQG*2,
+LQGL3XQMDEL +LQGL7HOXJX +LQGL8UGX
0HJKUDM&ORXGSRUWDO
0DOD\DODP7DPLO 7DPLO0DOD\DODP 0DUDWKL
+LQGL +LQGL0DUDWKL 3XQMDEL+LQGL 7DPLO   'HYHORSPHQW RI /DQJXDJH 7HFKQRORJ\


 $QQXDO5HSRUW

5HVRXUFHV 1/3,QWHUQDWLRQDOL]DWLRQRIYDULRXV:&6WDQGDUGV
‡ $QQRWDWHG 7H[W &RUSRUD 'HYHORSPHQW RI &66;IRUP9RLFH%URZVHUDQGRWKHUVDUHEHLQJ
DQQRWDWHG7H[W&RUSRUDRIVHQWHQFHV DQDO\]HG IRU WKHLU DGRSWLRQ LQ ,QGLDQ /DQJXDJHV
HDFK LQ +HDOWK 7RXULVP $JULFXOWXUH DQG 6 R P H  R I  W K H  P D M R U  D F K L H Y H P H Q W V  L Q  W K H
(QWHUWDLQPHQW GRPDLQ  IRU  ODQJXDJHV VWDQGDUGL]DWLRQDFWLYLW\DUH
LQFOXGLQJ(QJOLVKLH+LQGL$VVDPHVH%HQJDOL ‡ ,QGLF /DQJXDJH 5HTXLUHPHQWV IRU H3XE
%RGR*XMDUDWL.DQQDGD.RQNDQL0DOD\DODP DQG&666WDQGDUGV
0DQLSXUL0DUDWKL1HSDOL2UL\D3XQMDEL7DPLO  7KH :& ,QWHUQDWLRQDOL]DWLRQ :RUNLQJ *URXS
7HOXJX DQG 8UGX ODQJXDJHV KDYH EHHQ
KDV SXEOLVKHG D )LUVW 3XEOLF :RUNLQJ 'UDIW RI
GHYHORSHG$QQRWDWHGWH[WFRUSXVZLOOIDFLOLWDWH
,QGLF/D\RXW5HTXLUHPHQWVRQEHKDOIRIWKH,QGLF
GHYHORSPHQW RI 1/3 DSSOLFDWLRQV LQ ,QGLDQ
/ D \ R X W  7D V N  ) R U F H   S D U W  R I  W K H  :  &
ODQJXDJHV
,QWHUQDWLRQDOL]DWLRQ ,QWHUHVW *URXS 7KLV
‡ ,QGLDQ /DQJXDJH 7UHHEDQN 'DWD LV D PDMRU GRFXPHQWGHVFULEHVWKHEDVLFUHTXLUHPHQWVIRU
OLQJXLVWLF UHVRXUFH IRU YDULRXV 1/3 WDVNV ,QGLFVFULSWOD\RXWDQGWH[WVXSSRUWRQWKH:HE
'HSHQGHQF\7UHH%DQNVIRU,QGLDQ/DQJXDJHVµ DQG LQ H%RRNV 7KHVH UHTXLUHPHQWV SURYLGH
IRU ÀYH ODQJXDJHV LH +LQGL 0DUDWKL %HQJDOL LQIRUPDWLRQIRU:HEWHFKQRORJLHVVXFKDV&66
.DQQDGDDQG0DOD\DODPKDYHEHHQGHYHORSHG +70/ DQG 69* DERXW KRZ WR VXSSRUW
‡ ,QGLDQ /DQJXDJHV 6SHHFK 5HVRXUFHV XVHUV RI ,QGLF VFULSWV &XUUHQWO\ WKHVH GUDIW
3URMHFW ,QGLDQ /DQJXDJHV 6SHHFK 5HVRXUFHV UHFRPPHQGDWLRQ KDYH EHHQ ÀQDOL]HG IRU 
'HYHORSPHQW IRU 6SHHFK $SSOLFDWLRQV· IRU  ,QGLDQ ODQJXDJHV DQG PD\ EH UHIHUUHG DW
+LQGLDQG%HQJDOLODQJXDJHVKDVEHHQLQLWLDWHG KWWSZFJLWKXELRLOUHT
7KHVSHHFKGDWDLVEHLQJGHYHORSHGLQJHQHUDO ‡ $GRSWLRQRI8QLFRGH6WDQGDUG
DQG WRXULVP GRPDLQ IRU XVH LQ GHYHORSLQJ
 8QLFRGHKDVEHHQDGRSWHGDVWKHVWDQGDUGIRU
UREXVW VSHHFK UHFRJQLWLRQ HQJLQHV IRU ,QGLDQ
GHYHORSPHQWRIWKHH*RYHUQDQFHDSSOLFDWLRQV
ODQJXDJHV
RWKHU PXOWLOLQJXDO DSSOLFDWLRQV DQG FRQWHQW
  'HYHORSPHQWRI/DQJXDJH3URFHVVLQJ7RROV
GHYHORSPHQW IRU DOO WKH  FRQVWLWXWLRQDOO\
‡ 6KDOORZ 3DUVLQJ 7RROV LH 0RUSKRORJLFDO UHFRJQL]HG,QGLDQODQJXDJHV,QGLDQVFULSWV
$QDO\]HU$XWRPDWLF´3DUWVRI6SHHFKµ7DJJHU XVHGWRZULWHRIÀFLDO,QGLDQODQJXDJHVKDYH
DQG $XWRPDWLF &KXQNHU IRU  ,QGLDQ EHHQ UHSUHVHQWHG LQ WKH JOREDO VWDQGDUGV
/DQJXDJHVYL]'RJUL*XMDUDWL+LQGL.DVKPLUL 8QLFRGHDQG,6,
.RQNDQL0DLWKLOHH2UL\D6DQWKDOLDQGIRXU1(
‡ 9LUWXDO.H\ERDUG/D\RXWV
UHJLRQODQJXDJHV$VVDPHVH%RGR0DQLSXUL 
1HSDOLDUHDWDGYDQFHGVWDJHRIGHYHORSPHQW  'UDIW6WDQGDUGVRI9LUWXDO.H\ERDUG/D\RXWVIRU
PRELOHDQGZLUHOHVVGHYLFHVDUHEHLQJSUHSDUHG
  6WDQGDUGL]DWLRQ
IRU  ,QGLDQ ODQJXDJHV QDPHO\ +LQGL
7KH GHYHORSPHQW RI VWDQGDUGV LV D G\QDPLF $VVDPHVH %HQJDOL *XMDUDWL 0DUDWKL 7DPLO
SURFHVV 0HLW< LV DFWLYHO\ SDUWLFLSDWLQJ LQ WKH 3XQMDEL7HOXJX0DOD\DODP.DQQDGDDQG8UGX
LQWHUQDWLRQDOVWDQGDUGL]DWLRQRUJDQL]DWLRQVVXFKDV ODQJXDJHV
8QLFRGH:RUOG:LGH:HE&RQVRUWLXP :& DQG
‡ (QKDQFHG.H\ERDUG6WDQGDUG
(/5$HWFWRUHSUHVHQW,QGLDQVFULSWVODQJXDJHVLQ
WKH IXWXULVWLF VWDQGDUGV IRU ZHE WHFKQRORJLHV DQG  7KH0RGLÀHG,16&5,37.H\ERDUG/D\RXWDQG


0LQLVWU\RI(OHFWURQLFV ,QIRUPDWLRQ7HFKQRORJ\ 0HLW<

(QFRGLQJ 6WDQGDUGV IRU ,QGLDQ /DQJXDJHV LQ IRU JXLGHOLQHV 'UDIW RI 6FULSW EHKDYLRXU IRU
FRQIRUPLW\ ZLWK 8QLFRGH  KDV EHHQ 0DUDWKL *XMDUDWLXSORDGHGRQZZZWGLOGFLQ
SXEOLVKHGVWDJHDV%,66WDQGDUG,67KH IRUIHHGEDFN7KHZRUNLVLQSURJUHVVIRURWKHU
VDPHKDVEHHQDGRSWHGDV1DWLRQDO6WDQGDUG ODQJXDJHV
IRU(*RYDSSOLFDWLRQV   / D Q J X D J H  7H F K Q R O R J \  , Q I R U P D W L R Q
‡ 7HVWLQJ (YDOXDWLRQ  %HQFKPDUNLQJ RI 'LVVHPLQDWLRQ 5HSRVLWRU\
/DQJXDJH7HFKQRORJLHV ‡ 7',/'DWD&HQWUH ZZZWGLOGFLQ
 7KH RXWFRPHV RI WKH YDULRXV SURMHFWV EHLQJ  7KLV SRUWDO SURYLGHV ODQJXDJH WHFKQRORJ\
LPSOHPHQWHGXQGHU7',/3URJUDPPHDUHEHLQJ VHUYLFHV DQG UHVRXUFHV GHYHORSHG XQGHU
WHVWHG E\ WKLUGSDUW\ WHVWLQJ DJHQF\ 7KH YDULRXV7',/SURMHFWV$SSUR[LPDWHO\,QGLDQ
LQWHUPHGLDWH WHVWLQJ IHHGEDFN KDV KHOSHG LQ ODQJXDJHV UHVRXUFHV DQG D QXPEHU RI 1/3
LPSURYLQJ WKH SHUIRUPDQFH RI WKH YDULRXV WRROVIRU,QGLDQODQJXDJHVKDYHEHHQPDGH
WHFKQRORJLHV EHLQJ GHYHORSHG XQGHU WKH DYDLODEOH WKURXJK 7',/ 'DWD &HQWUH SRUWDO
SURJUDPPH 7ZHOYH DSSOLFDWLRQV VXFK DV 0$7 :HE2&5
 $ GUDIW RI ´VWDQGDUG IRU DFFHSWLQJ PDFKLQH ,QGR:RUG1HW +LQGL:RUGQHW *ORVVDU\ WRRO
WUDQVODWHGFRQWHQWLQ,QGLDQODQJXDJHWRHQDEOH 875566DQVNULW1/3WRROV6DQVNULW(OHDUQLQJ
LQGXVWU\ SDUWQHUV WR SURYLGH WUDQVODWLRQ RI DSSOLFDWLRQ6DQGKDQ&/,$7760RELOHEDVHG
FRQWHQWµLVDOVREHLQJSUHSDUHG 07VHUYLFH/306HWFKDYHDOVREHHQKRVWHGRQ
‡ 6FULSW%HKDYLRXUIRU,&76WDNHKROGHUV WKH SRUWDO )HHGEDFNV IRU YDULRXV VWDQGDUGV
EHLQJ HYROYHG XQGHU WKH SURJUDPPH DUH DOVR
 6FULSW EHKDYLRXU RI D ODQJXDJH LV EHLQJ
VRXJKWWKURXJKWKLVSRUWDO 7KHSRUWDOGRPDLQ
GHYHORSHG DV D %HVW 3UDFWLFH IRU FRUUHFW
QDPHKDVDOVREHHQUHJLVWHUHGIRU+LQGL$VRQ
OLQJXLVWLFVXSSRUWRI,QGLDQ/DQJXDJHVDFURVV
GDWHWKHUHKDVEHHQGRZQORDGV
SODWIRUPVDSSOLFDWLRQVDQGWKHLQWHUQHW6FULSW
EHKDYLRXUIRU+LQGLLVSUHSDUHGDQGVHQWWR%,6


 $QQXDO5HSRUW

‡ 7',/:HEVLWH 8QGHU WKLV 3ROLF\ DFFHVVLELOLW\ DXGLW RI  PRVW

SRSXODUYLVLWHG *RYHUQPHQW :HEVLWHV ZDV
 8QLFRGHFRPSOLDQW7',/3URJUDPPH·VZHEVLWH
FRQGXFWHG ZLWK WKH KHOS RI (51(7 ,QGLD $ +LJK
KWWSWGLOPLWJRYLQFRQWDLQVLQIRUPDWLRQDERXW
/HYHO$GYLVRU\&RPPLWWHH +/$& ZDVFRQVWLWXWHG
W K H  7 ' , /  3 U R J U D P P H · V  L Q L W L D W L Y H V  D Q G
ZLWKPXOWLSOHVWDNHKROGHUV·SDUWLFLSDWLRQWRGHFLGH
DFKLHYHPHQWV :HE VWDQGDUGL]DWLRQ LQLWLDWLYH
IXUWKHUFRXUVHRIDFWLRQWRLPSOHPHQWWKHSROLF\$V
VHFWLRQIRFXVVLQJRQ,QWHUQDWLRQDOL]DWLRQRI:HE
SHUGHFLVLRQVWDNHQE\WKH+/$&YDULRXVLQLWLDWLYHV
VWDQGDUGVKDVEHHQDGGHGWRWKLVZHEVLWH
KDYHEHHQWDNHQ
 $OVR WKLV SRUWDO LV LQWHJUDWHG ZLWK RWKHU WZR
SURPLQHQW SRUWDO RI 7',/ 3URJUDPPH LH )RU UHPDLQLQJ *RYHUQPHQW ZHEVLWHV +/$&
ZZZWGLOGFLQ DQG ZZZLOGFLQ ZKLFK SURYLGH GHFLGHG WKDW UHVSHFWLYH RUJDQL]DWLRQ PD\ WDNH
OLQJXLVWLFDQGODQJXDJHWHFKQRORJ\VROXWLRQVWR QHFHVVDU\DFWLRQUHJDUGLQJPDNLQJWKHLUZHEVLWHV
FRPPRQFLWL]HQDQGUHVHDUFKHUV DFFHVVLEOH HLWKHU E\ WKHLU RZQ WHDP RU WKURXJK
DJHQFLHVHPSDQHOOHGE\1,&6,,QWKLVUHJDUG0HLW<
‡ 7HFKQLFDO -RXUQDO RI ,QGLDQ /DQJXDJH
KDV ZULWWHQ WR YDULRXV RUJDQL]DWLRQV IRU WKH VDPH
7HFKQRORJLHV
YLGHFRPPXQLFDWLRQQR  H,QIUD 9O,9 
 7KH9LVKZD%KDUDW#WGLOLVDWHFKQLFDOMRXUQDORI GDWHG-XQH7KHH[SHQGLWXUHIRUWKHVDPH
, Q G L D Q  O D Q J X D J H  W H F K Q R O R J L H V   Z K L F K ZLOOEHERUQHE\WKHUHVSHFWLYHGHSDUWPHQWVIURP
FRQVROLGDWHVLQIRUPDWLRQDERXWSURGXFWVWRROV WKHLUUHVSHFWLYHEXGJHW
V H U Y L F H V   D F W L Y L W L H V   G H Y H O R S P H Q W V 
,Q RUGHU WR PDNH WKH *RYHUQPHQW ZHEVLWHV
DFKLHYHPHQWV LQ WKH DUHD RI ,QGLDQ /DQJXDJH
DFFHVVLEOH 0HLW< KDV DOVR LVVXHG DQ RIÀFH
VRIWZDUH DW RQH SODFH $OO WKH LVVXHV DUH
PHPRUDQGXPQR  (*,, GDWHG0D\
DFFHVVLEOH WKURXJK WKH 7',/ :HE VLWH 7KH
UHJDUGLQJYDULRXVDFFHVVLELOLW\JXLGHOLQHVYL]
FXUUHQWLVVXHRIWKHMRXUQDO LVVXH LVEDVHG
0DNLQJ *RYHUQPHQW QRWLÀFDWLRQVFLUFXODUV HWF
RQ6SHHFK7HFKQRORJ\ 6FULSW%HKDYLRXU,WLV
$FFHVVLEOH E\ SXWWLQJ WKHP LQWR H3XE RU 2&5
PDGHDYDLODEOHRQOLQHLQIRUPRIHSXEOLFDWLRQ
2SWLFDO &KDUDFWHU 5HFRJQLWLRQ  EDVHG 3') DQG
ZLWKXVHUIULHQGO\QDYLJDWLRQDOIDFLOLWLHV
PDNLQJ DOO SURFXUHPHQW *,*: FRPSODLQW WR WKH
 'LJLWDO/LWHUDF\ 6HFUHWDULHV RI DOO &HQWUDO 0LQLVWULHV'HSDUWPHQWV
7ZR 6FKHPHV KDYH EHHQ ÁRDWHG IRU VSUHDGLQJ DQG,76HFUHWDULHVRIDOO6WDWHV87V$IWHUPXOWLSOH
'LJLWDO/LWHUDF\WRWKHPDVVHVLQWKHFRXQWU\ZKRVH IROORZXSVDQGGLVFXVVLRQVLQ+/$&,5&7&ZKLFK
GHWDLOV PD\ EH VHHQ LQ &KDSWHU  XQGHU 6HFWLRQ LV RQH RI WKH PRVW YLVLWHG ZHEVLWHFLWL]HQ FHQWULF
 SRUWDO KDV PDGH LWV ZHEVLWH DFFHVVLEOH E\
SURYLGLQJ2QH7LPH3DVVZRUG 273 LQDGGLWLRQWR
 ,QLWLDWLYHVRQ$FFHVVLELOLW\
9LVXDO&$37&+$
$ 1DWLRQDO 3ROLF\ RQ 8QLYHUVDO (OHFWURQLF
$FFHVVLELOLW\ ZDV IRUPXODWHG E\ 0LQLVWU\ RI 5HJDUGLQJDFFHVVLELOLW\DXGLW0HLW< H*RYHUQDQFH
(OHFWURQLFVDQG,QIRUPDWLRQ7HFKQRORJ\ 0HLW< DQG *URXS  KDV EHHQ VXSSRUWLQJ D SURMHFW WLWOHG
LW ZDV QRWLÀHG RQ 2FWREHU   7KH SROLF\ ¶:HEVLWH 4XDOLW\ (YDOXDWLRQ· RI  *RYHUQPHQW
IDFLOLWDWHV HTXDO DQG XQKLQGHUHG DFFHVV RI ZHEVLWHV LQFOXGLQJ  DERYH ZHEVLWHV  DV SHU
(OHFWURQLFV DQG ,&7V SURGXFWV DQG VHUYLFHV E\ *,*: ZKLFK LV H[HFXWHG E\ 674& 8QGHU WKLV
GLIIHUHQWO\DEOHGSHUVRQV SURMHFWZHEVLWHVKDYHEHHQFHUWLÀHGRQ*,*:


0LQLVWU\RI(OHFWURQLFV ,QIRUPDWLRQ7HFKQRORJ\ 0HLW<

DVRQ1RYHPEHU HQJDJHPHQW EHWZHHQ WKH JRYHUQPHQW DQG WKH

FLWL]HQV 7KH XSJUDGHG YHUVLRQ RI WKH DSSOLFDWLRQ
,QDGGLWLRQ0HLW<SURYLGHVWHFKQRORJLFDOVXSSRUWWR
VRIWZDUH 0\*RYY ZDVODXQFKHGRQWK)HE
WKH 1RGDO 0LQLVWU\ IRU GLIIHUHQWO\DEOHG SHUVRQ

'LY\DQJ  LH 'HSDUWPHQW RI (PSRZHUPHQW RI
3HUVRQ ZLWK 'LVDELOLWLHV '(3Z'  IRU YDULRXV 9LVLRQ&UHDWLQJDSDUWLFLSDWRU\GLJLWDOGHPRFUDF\
LQLWLDWLYHV UHODWHG WR GLIIHUHQWO\DEOHG SHUVRQ HJ OHYHUDJLQJ WHFKQRORJ\ WR HQDEOH HYHU\ FLWL]HQ WR
$FFHVVLEOH ,QGLD &DPSDLJQ 6XJDP\D %KDUDW FRQWULEXWH LGHDV DQG HIIRUWV WRZDUGV QDWLRQ
$EKL\DQ  EXLOGLQJWUDQVIRUPLQJWKHVHLGHDVLQWRDFWLRQDQG
UHFRJQL]LQJLQGLYLGXDOFRQWULEXWLRQV
'HYHORSPHQWRI&RPPRQ0LQLPXP)UDPHZRUN
&0) IRU*RYHUQPHQW:HEVLWHV 7KH FXUUHQW DQDO\WLFV VKRZ  /DNK XVHUV
UHJLVWHUHGRQ0\*RYZLWKRYHUFURUHYLHZVRI
&0) LV D &RPPRQ 0LQLPXP )UDPHZRUN IRU
WKHZHEVLWH7KHUHDUHJURXSVUXQQLQJRQ0\*RY
*RYHUQPHQW ZHEVLWHV GHYHORSHG XQGHU WKH (DUO\
LQ DVVRFLDWLRQ ZLWK  PLQLVWULHV 6R IDU 
+DUYHVW6FKHPHRI'LJLWDO,QGLD3URJUDPPH7KLV
GLVFXVVLRQV  WDVNV DQG  SROOV KDYH EHHQ
IUDPHZRUNGHYHORSHGE\1,&DQGEDVHGRQRSHQ
KRVWHGRQWKHSODWIRUP$VDUHVSRQVHRYHU
VRXUFH WHFKQRORJ\ IDFLOLWDWHV VWDQGDUGL]DWLRQ DQG
O D N K  F R P P H Q W V  D Q G  R Y H U       O D N K  W D V N
LPSURYHPHQWLQSUHVHQWDWLRQDQGFRQWHQWGHOLYHU\
VXEPLVVLRQVKDYHEHHQUHFHLYHG,QDGGLWLRQ
RI *RYHUQPHQW ZHEVLWHV &0) HQDEOHV VWDWLF
FLWL]HQVKDYHYROXQWHHUHGIRU0\*RYWLOOGDWH0\*RY
ZHEVLWHVWRPLJUDWHWRG\QDPLFSRUWDOVDQGDVHWRI
LVYHU\DFWLYHRQWKHVRFLDOVSDFHDVZHOOZLWKLQLWLDWLRQ
IXQFWLRQDOIHDWXUHVZLOOEHDYDLODEOHWRWKHZHEVLWHV
RI0\*RY·V)DFHERRNSDJHRYHUIROORZHUV
RI0LQLVWULHV'HSDUWPHQWVRQDGRSWLRQRI&0)7KLV
DQGRYHURQHPLOOLRQIROORZHUVRQ7ZLWWHU
IUDPHZRUNDOVRVLPSOLÀHVFRQWHQWXSGDWLQJRIWKH
ZHEVLWHV 7KHPDMRUDWWULEXWHVRI0\*RYLQFOXGH
$FKLHYHPHQWV 'LVFXVVLRQ7KLVVHFWLRQLQYLWHVVXJJHVWLRQVIURP
XVHUVRQYDULRXVJRYHUQDQFHLVVXHV
‡ 1XPEHURIZHEVLWHV/DXQFKHG
'R,WLQFOXGHVWDVNVDQGDFWLYLWLHVWKDWHQFRXUDJH
‡ 5HDG\IRU/DXQFK
XVHUVWRVKRZFDVHWKHLUFUHDWLYHVNLOOV
‡ 0LJUDWLRQWR&0)LQSURJUHVV
7DONV ,W LV DQ LQLWLDWLYH WR IDFLOLWDWH OLYH LQWHUDFWLRQ
‡ 3HQGLQJ8,DSSURYDO ZLWK VHQLRU JRYHUQPHQW GHFLVLRQ PDNHUV GRPDLQ
0\*RY H[SHUWV DQG HPLQHQW DFDGHPLFLDQV RQ FXUUHQW
JRYHUQDQFHWRSLFVDQGLQLWLDWLYHV
$SODWIRUPIRU&LWL]HQ(QJDJHPHQWWRZDUGV%HWWHU
3ROOV ,W LV DQ REMHFWLYH PHWKRG WR JDXJH WKH
*RYHUQDQFH
RSLQLRQ RI WKH FLWL]HQV WKURXJK YRWLQJ RQ FXUUHQW
0\*RYLVDFLWL]HQHQJDJHPHQWSODWIRUPIRXQGHG LVVXHVRISXEOLFLPSRUWDQFH
E\WKH*RYHUQPHQWRI,QGLDWRSURPRWHWKHDFWLYH %ORJV 3URYLGHV LQVLJKW DERXW WKH DFWLYLWLHV
SDUWLFLSDWLRQ RI ,QGLDQ FLWL]HQV LQ WKHLU FRXQWU\ V PDQDJHGE\0\*RY
JRYHUQDQFH DQG GHYHORSPHQW 0\*RY ZDV
ODXQFKHGRQWK-XO\E\+RQ3ULPH0LQLVWHU ‡ 4XL]
6KUL 1DUHQGUD 0RGL WR IDFLOLWDWH FRQWLQXRXV ‡ 6XUYH\V


 $QQXDO5HSRUW

3URPLQHQWDFWLYLWLHVKHOGE\0\*RY² FDXVHHQJDJLQJXVHUVWRSRVWEHIRUHDQGDIWHU
YLGHRV DQG QRPLQDWH IULHQGV DQG IDPLO\
0\*RYSODWIRUPKDVEHHQVXFFHVVIXOLQNHHSLQJWKH
PHPEHUV WR WDNH XS FOHDQOLQHVV GULYHV
FLWL]HQVHQJDJHGRQLPSRUWDQWSROLFLHVLVVXHVDQG
FROOHFWLYHO\
JRYHUQDQFH 6RPH RI WKH SURPLQHQW DFWLYLWLHV RQ
0\*RYDUH YLL  7KH7UDQVIRUPLQJ,QGLDPLFURVLWHZDVODXQFKHG
E\0\*RYRQWK0DUFKIRUKLJKOLJKWLQJ
L  ¶0DQQ .L %DDW· UDGLR VKRZ RI +RQ 30 6KUL
WKHSURJUHVVEHLQJPDGHXQGHUYDULRXVÁDJVKLS
1DUHQGUD 0RGL FRPPHQFHG RQ UG 2FWREHU
SURJUDPPHVRIWKH*RYHUQPHQWRI,QGLDDQGWR
 VHHNLQJ FLWL]HQ LGHDV 6R IDU  VKRZV
SXWLQWRSHUVSHFWLYHWKHJURZWKRIWKHFRXQWU\VR
KDYH EHHQ RQ DLU UHFHLYLQJ RQ DQ DYHUDJH RI
IDU  0\*RY 7DONV XQGHU WKH 7UDQVIRUPLQJ
FDOOVDQGFRPPHQWV
,QGLDVHULHVZHUHKHOGZLWKXQLRQPLQLVWHUV
LL  2Q WK 0D\  0\*RY SURYLGHG H[SHUW
YLLL )RUWKUHHFRQVHFXWLYH\HDUV0\*RYKDVEHHQ
JURXS GLVFXVVLRQ IRU $,0 $7$/ ,QQRYDWLRQ
VROLFLWLQJLGHDVIRUWKH5DLOZD\%XGJHWDVZHOODV
0LVVLRQ  DQG 6(78 6HOI (PSOR\PHQW DQG
WKH 8QLRQ %XGJHW VR IDU PRUH WKDQ  LGHDV
7DOHQW8WLOLVDWLRQ XQGHU1,7,$D\RJ
IURP FLWL]HQV KDYH EHHQ UHÁHFWHG LQ %XGJHW
LLL  $QGURLG 0RELOH DSSOLFDWLRQV IRU 0\*RY DQG GRFXPHQWV
6ZDFKK%KDUDW$EKL\DQZHUHODXQFKHGE\+RQ
L[  7KH 0LQLVWU\ RI )LQDQFH LQYLWHG FLWL]HQ
306KUL1DUHQGUD0RGLRQVW-XO\GXULQJ
VXJJHVWLRQVIRUWZRFRQVHFXWLYH\HDUVLGHDV
'LJLWDO,QGLD:HHNZLWKRYHUODNKGRZQORDGV
ZHUHUHÁHFWHGLQ8QLRQ%XGJHWDQG
DQGRYHUODNKGRZQORDGVRIHDFKUHVSHFWLYHO\
[  (N%KDDUDW6KUHVKWK%KDUDWZDVODXQFKHGRQ
LY  0\*RY KRVWHG D FRPSHWLWLRQ LQ FROODERUDWLRQ
5DVKWUL\D (NWD 'LYDV VW 2FWREHU 
ZLWK *RRJOH WR GHVLJQ WKH 302 $QGURLG
PDUNLQJWKHELUWKDQQLYHUVDU\RI6DUGDU9DOODEK
$SSOLFDWLRQ7KHÀQDODSSOLFDWLRQZDVODXQFKHG
%KDL3DWHO7KHLQLWLDWLYHZDVWRSURPRWHFXOWXUDO
GXULQJ WKH +RQ·EOH 30·V 7RZQKDOO RQ WK
LQIXVLRQ DQG IUDWHUQLW\ WKURXJK H[FKDQJH RI
$XJXVW7KHDSSOLFDWLRQKDVVHHQRYHU
ODQJXDJH WUDGH FXOWXUH WUDYHO DQG WRXULVP
ODNKGRZQORDGVVRIDU
0\*RY KRVWHG DQ HVVD\ FRPSHWLWLRQ VHHNLQJ
Y  0R8' UHFRPPHQGHG 0\*RY DV WKH FRUH VXJJHVWLRQV WR OLQN VWDWHV DQG GLVWULFWV 
SODWIRUPIRUFLWL]HQFRQVXOWDWLRQIRU¶6PDUW&LW\ LGHDVZHUHUHFHLYHGGXULQJWKHFRQWHVWDQGWKH
0LVVLRQ·0\*RYRIIHUHGYDULRXVFLWLHVDUDQJH VFKHPH ZDV LQFOXGHG LQ WKH 8QLRQ %XGJHW
RI FRQVXOWDWLRQ PHWKRGV E\ KRVWLQJ   8QGHU WKH SURJUDPPH 6WDWH DQG
GLVFXVVLRQIRUXPVWDVNVRQOLQHSROOV 87VSHFLÀF TXL]]HV KDYH EHHQ VWDUWHG RQ
 WDONV DQG  EORJV ZKLFK UHFHLYHG RYHU 0\*RY ZKLFK KDYH JDUQHUHG LPPHQVH
FRPPHQWV DWWHQWLRQ DQG SURPLVLQJ SDUWLFLSDWLRQ IURP
YL  6ZDFKK%KDUDW$EKL\DDQRQHRIWKHSURPLQHQW FLWL]HQVDFURVVWKHFRXQWU\
*R,SURJUDPPHVZDVODXQFKHGRQQG2FWREHU [L  0\*RYRUJDQL]HGWKHÀUVWHYHU7RZQ+DOORIWKH
7KHORJRRI6ZDFKK%KDUDW$EKL\DQZDV +RQ·EOH 30 LQ ,QGLD RQ WK $XJXVW  DW
FURZGVRXUFHG RQ WKH SODWIRUP RI 0\*RY ,QGLUD *DQGKL ,QGRRU 6WDGLXP DV SDUW RI
0\*RY·V 6ZDFKK %KDUDW PLFURVLWH LV D FHOHEUDWLQJLWVVHFRQGDQQLYHUVDU\
FROODERUDWLYH QHWZRUN IRU WKLV LPPHQVH VRFLDO


0LQLVWU\RI(OHFWURQLFV ,QIRUPDWLRQ7HFKQRORJ\ 0HLW<

[LL  0\*RYKDVEHHQDWWKHKHOPRIRUJDQL]LQJ'LJL [YLL $ORQJZLWKDERYHQRWDEOHVWRULHV/RJRVDQG

'KDQ 0HODV LQ 'HOKL  IRU 1,7, $D\RJ DV SHU 7DJOLQHV IRU 1DWLRQDO 6FKHPHV ZHUH DOVR
*RYHUQPHQW RI ,QGLD·V VFKHPH RI SURPRWLQJ FURZGVRXUFHGRQWKHSODWIRUPRI0\*RYVXFK
YDULRXV PRGHV RI GLJLWDO SD\PHQWV DIWHU WKH DV3UDGKDQ0DQWUL-DQ'KDQ<RMDQD1DWLRQDO
GHPRQHWL]DWLRQ H[HUFLVH XQGHUWDNHQ LQ 'LJLWDO /LWHUDF\ 0LVVLRQ )&, 'HSRWV 3UDYDVL
1RYHPEHU6WDOOVRIOHDGLQJQDWLRQDOL]HG %KDUDWL\D'LYDV
EDQNV PRELOH ZDOOHW RSHUDWRUV DQG FR
0\*RY·V)XWXUH3URJUDPPHV
RSHUDWLYHVZHUHSDUWRIWKHHYHQWV2YHU
SHRSOHYLVLWHGWKH0HODVRUJDQL]HGE\0\*RY ([SDQGLQJ6FRSHRI&XUUHQW$FWLYLWLHV
RQ EHKDOI RI 0HLW< 7R SURPRWH DQG SXEOLFL]H L  ([SDQGLQJWKH,956DQG606LQWHJUDWLRQ
YDULRXV GLJLWDO SD\PHQW RSWLRQV IRU VSUHDGLQJ &UHDWLQJQHZDYHQXHVIRUFLWL]HQVWRUHDFKRXW
DZDUHQHVV DPRQJ FLWL]HQ DQG PHUFKDQWV WRWKHJRYHUQPHQWDQGVKDUHWKHLUVXJJHVWLRQV
0\*RYODXQFKHGD'LJL'KDQPLFURVLWHDVZHOO 0\*RYQRZKDVQHZIHDWXUHVOLNH,956DQG606
[LLL 0\*RY ODXQFKHG WKH 6DQGHVK6ROGLHUV IRUWKHFLWL]HQV·FRQYHQLHQFH
FDPSDLJQLQ2FWREHU LL  0RQWKO\ HYHQW ZLWK 0LQLVWULHV  0\*RY
[LY 0\*RYZDVJLYHQ D3ODWLQXP$ZDUGLQ´0RVW SURSRVHVWRKHOSPLQLVWULHVWKDWFXUUHQWO\KDYH
,QQRYDWLYH &LWL]HQ (QJDJHPHQWµ FDWHJRU\ DW DFWLYLWLHVRQ0\*RYRUJDQLVHPRQWKO\HYHQWVWR
'LJLWDO,QGLD$ZDUGVKHOGLQ1HZ'HOKL*ROGLQ VXSSOHPHQWRQOLQHDFWLYLWLHV
´6HFWRUDO $ZDUG 'LJLWDO 7UDQVIRUPDWLRQV LLL  0HUFKDQGLVH VWRUH  0\*RY SURSRVHV WR
WRZDUGVWUDQVIRUPLQJ,QGLDµDW1DWLRQDO$ZDUGV XSVFDOH LWV DQ LQKRXVH RQOLQH PHUFKDQGLVH
IRU H*RYHUQDQFH KHOG LQ 9LVKDNKDSDWQDP VWRUH SURYLGLQJ XVHUV DQ RSSRUWXQLW\ WR JHW
%URQ]HLQ´'LJLWDO&LWL]HQ6ROXWLRQµFDWHJRU\DW 0\*RYEUDQGHGSURGXFWVDQGDOVRDVDWRNHQRI
([SUHVV ,7 $ZDUGV KHOG LQ %HQJDOXUX DQG DSSUHFLDWLRQ IRU YROXQWHHUV DQG RWKHU 0\*RY
5XQQHUXS LQ ´,QQRYDWLYH 6PDUW 6ROXWLRQ ² XVHUV
,QVWLWXWLRQDOµFDWHJRU\DW%XVLQHVV:RUOG6PDUW
LY  9ROXQWHHUPRGXOH0\*RYLQWHQGVWRXSVFDOH
&LWLHV$ZDUGKHOGLQ1HZ'HOKL
LWV YROXQWHHU PRELOH DSSOLFDWLRQ XQGHU ZKLFK
[Y  0\*RY RUJDQL]HG 6PDUW ,QGLD +DFNDWKRQ DQ SHRSOHFDQHQJDJHZLWKPLQLVWU\OHGLQLWLDWLYHV
LQLWLDWLYHE\$,&7(0+5'LQFROODERUDWLRQZLWK E\ YROXQWHHULQJ IRU SK\VLFDO HYHQWV DFWLYLWLHV
1DVVFRPDQG8*&7KHLQLWLDWLYHKDVQHDUO\ DQGÀHOGH[HFXWLRQRIWDVNVDWKDQG
SUREOHP VWDWHPHQWV IURP  PLQLVWULHV ,W KDV
Y  'HSOR\DQDO\WLFVVRIWZDUH7KHDQDO\VLVWRRO
VHHQRYHUTXDOLW\VXEPLVVLRQVDQGPRUH
RI0\*RYZRXOGKHOSLQLQWHUQDODQDO\VLVRIXVHU
WKDQODNKYLHZV
VXJJHVWLRQV E\ WKH WHDP DQG UHSRUWLQJ WR
[YL 0\*RYRUJDQL]HGWKH1DWLRQDO&RQWHVWIRU6RFLDO 0LQLVWULHV DQG 'HSDUWPHQWV HQJDJLQJ ZLWK
,QQRYDWLRQD0LQLVWU\RI([WHUQDO$IIDLUV·LQLWLDWLYH FLWL]HQVRQ0\*RY
LQ FROODERUDWLRQ ZLWK 1,7, $D\RJ 1HDUO\ 
YL  6WDWH LQVWDQFHV RI 0\*RY  0\*RY KDV
HQWULHVZHUHUHFHLYHGDQGVRFLDOLQQRYDWLRQV
DOUHDG\ KHOSHG LQLWLDWH VWDWH 0\*RY LQVWDQFHV
ZHUHVHOHFWHGDQGVKRZFDVHGGXULQJWKH3UDYDVL
IRU WKH *RYHUQPHQW RI 0DKDUDVKWUD DQG
%KDUDWL\D'LYDVLQ%HQJDOXUX
+DU\DQD0RUHVWDWHLQVWDQFHVZLOOEHODXQFKHG


 $QQXDO5HSRUW

VKRUWO\ $ UHTXHVW OHWWHU ZDV FLUFXODWHG LQ WKLV FRQWURO JHRJUDSKLFVFDOH$WRWDORIYDQV

UHJDUGWRDOO6WDWHV87VDQGSRVLWLYHUHVSRQVH DUHWREHGHSOR\HGWRFDUU\RXWWKLVFDPSDLJQDW
KDVEHHQUHFHLYHGIURPVRPH6WDWHV 3DQ ,QGLD OHYHO &XUUHQWO\ WKH FDPSDLJQ KDV
EHHQUROOHGRXWLQ6WDWHVWKURXJKYDQVDQG
YLL  6LQJOH VLJQ RQ  RSHQ ,' 2SHUDWLQJ D VLQJOH
KDV UHDFKHG RXW WR  /DNK FLWL]HQV $Q
VLJQRQIRU0\*RYDQGWKHQLQFRUSRUDWLQJWKH
H[KDXVWLYH UHSRUWLQJ GDVKERDUG KDV EHHQ
ZHEVLWHV XQGHU 0HLW\ ZKLFK ZLOO KHOS LQ
FUHDWHG ZKLFK SURYLGHV XSGDWHG UHSRUW DQG
SURYLGLQJDVHDPOHVVH[SHULHQFHWRDOOXVHUV
L Q I R U P D W L R Q  D E R X W  W K H  F D P S D L J Q 
'LJLWDO,QGLD&RPPXQLFDWLRQ ZZZGLJLWDOLQGLDRXWUHDFKLQ   7KH FDPSDLJQ
,Q RUGHU WR SURPRWH ¶'LJLWDO ,QGLD· DV D ÁDJVKLS ZDVÁDJJHGRIIE\+RQ·EOH0LQLVWHURQWK0D\
SURJUDPRIWKH*RYHUQPHQWRI,QGLDDQXPEHURI IURP 1HZ 'HOKL 6XEVHTXHQWO\ WKH FDPSDLJQ
DFWLYLWLHVZHUHXQGHUWDNHQGXULQJWKH\HDU Z D V  O D X Q F K H G  E \  & K L H I  0 L Q L V W H U V  R I
8 W W D U D N K D Q G   + D U \ D Q D   & K K D W W L V J D U K 
‡ 9LNDV 3DUY  0HLW< RUJDQL]HG DZDUHQHVV
-KDUNKDQG  $UXQDFKDO 3UDGHVK LQ WKHLU
FDPSVDWYDULRXVORFDWLRQVDFURVVWKHFRXQWU\
UHVSHFWLYHVWDWHV
WR PDUN WZR \HDUV RI FRPSOHWLRQ RI WKH
JRYHUQPHQW ZKLFK ZDV JUDFHG E\ +RQ·EOH ‡ 0DVV0HGLD6WUDWHJ\²79&V$IWHUDSSURYDO
0LQLVWHUV IURP WKH  &RPSHWHQW $XWKRULW\ 79&V 6KRUW
0RYLHVDQG5DGLR-LQJOHVKDYHEHHQPDGHIRUD
‡ 5XUDO2XWUHDFK&DPSDLJQ 'LJLWDO5DWK 
QXPEHURI'LJLWDO,QGLDSURGXFWVDQGVHUYLFHV
'LJLWDO ,QGLD 2XWUHDFK SURJUDP IRU 5XUDO
OLNH 1DWLRQDO 6FKRODUVKLS 3RUWDO H+RVSLWDO
&LWL]HQVLVDYDQEDVHGGLUHFWLQWHUIDFHWRFLWL]HQ
%KDUDW %URDGEDQG 'LJLWDO ,QGLD *HQHULF
HQJDJHPHQW SURJUDP DLPHG WR FUHDWH
,7,7(6 ,QGXVWU\ 'LJLWDO /RFNHU H6LJQ 'LJLWDO
DZDUHQHVVDERXW'LJLWDO,QGLDDW'LJLWDO3RLQWVRI
%DQNLQJ 0HGLFDO (OHFWURQLFV H(GXFDWLRQ
3UHVHQFH 3R3  ORFDWLRQV VXFK DV 'LVWULFW H
9LNDV 3DUY ,&(*29 -HHYDQ 3UDPDQ HWF 7KH
*RYHUQDQFH 6RFLHWLHV 'H*6  'LJL 6HZD
EX]] ZDV FUHDWHG IRU DW OHDVW  GD\V LQ D
&HQWUHV3DQFK\DWVHWF7KURXJKEUDQGHGYDQV
PRQWK WKURXJK 5DGLR MLQJOHV 79 FRPPHUFLDOV
PHVVDJH DERXW 'LJLWDO ,QGLD VHUYLFHV DQG
DQG3ULQW$GV
DFKLHYHPHQWVDUHEHLQJWDNHQWRWKHODVWPLOHLQ
WKH FRXQWU\ $FWLYLWLHV LQFOXGH VNLW VKRZV ‡ 8QLYHUVLW\:RUNVKRSV <RXWKLVWKHODUJHVW
DXJPHQWHG UHDOLW\ JDPHV GHPRQVWUDWLRQV XVHU DQG FRQVXPHU RI 'LJLWDO ,QGLD 6HUYLFHV
UHJLVWUDWLRQGULYHVIRUSURGXFWVVHUYLFHVÁ\HUV 8QLYHUVLW\ VWXGHQWV FDQ EH WUDLQHG DQG
SRVWHUV WLQSODWHV IHHGEDFN FROOHFWLRQ HWF PRWLYDWHG WR DFW DV 'LJLWDO ,QGLD %UDQG
7KLVFRPSRQHQWLVEHLQJLPSOHPHQWHGLQDOO $PEDVVDGRUVZRUNLQJLQHDFKDQGHYHU\SDUWRI
6WDWHVZLWKWKHDFWLYHSDUWLFLSDWLRQRI6WDWHDQG WKH FRXQWU\ WR SUROLIHUDWH WKH SURGXFWVHUYLFHV
'LVWULFW DGPLQLVWUDWLRQV %7/ DJHQFLHV KDYH D Z D U H Q H V V   G L J L W D O  O L W H U D F \  D Q G  R W K H U
EHHQHPSDQHOOHGE\1H*'DQGWKHZRUNKDV YROXQWHHULQJ DFWLYLWLHV 3LORW  XQLYHUVLW\
EHHQDZDUGHGWRDJHQFLHVWKURXJKDQRSHQ ZRUNVKRSV KDV EHHQ VXFFHVVIXOO\ FRQGXFWHG
5)3 *URXS 0 ,PSDFW &RPPXQLFDWLRQ DQG )HE0DU LQXQLYHUVLWLHVLQDVVRFLDWLRQ
-DJUDQ :RUN KDV EHHQ DOORFDWHG WR DJHQFLHV ZLWK 1DWLRQDO 6HUYLFH 6FKHPH 166  XQGHU
]RQHZLVH EDVHGRQELGV IRUEHWWHUPRQLWRULQJ 0LQLVWU\ RI 6SRUWV  <RXWK $IIDLUV  ,Q WKHVH


0LQLVWU\RI(OHFWURQLFV ,QIRUPDWLRQ7HFKQRORJ\ 0HLW<

ZRUNVKRSVRYHUVWXGHQWVZHUHLQIRUPHG   1HZVOHWWHU (YHU\ PRQWK D 'LJLWDO ,QGLD

DERXW'LJLWDO,QGLDREMHFWLYHVDQGIRFXVDUHDV 1HZVOHWWHU LV EHLQJ SXEOLVKHG WR FUHDWH
OLNHHZDVWHPDQDJHPHQW,7IRU-REV1DWLRQDO DZDUHQHVV DERXW 'LJLWDO ,QGLD  SURGXFWV
6FKRODUVKLSV 3RUWDO HWF 0RUH WKDQ  VHUYLFHVDQGSURMHFWV
VWXGHQWVZHUHUHJLVWHUHGWRYROXQWHHUIRU'LJLWDO
  6RFLDO 0HGLD &RPPXQLFDWLRQ WKURXJK
,QGLDVXEVHTXHQWWRWKHSDUWLFLSDWLRQLQWKHVH
VRFLDO PHGLD KDQGOHV KDV EHHQ ZLGHO\
ZRUNVKRSV RQ WKH 1H*' SRUWDO IRU 9ROXQWHHU
SURSDJDWHG WR SURPRWHGLVVHPLQDWH
0DQDJHPHQW 6\VWHP 906  ,Q  WKLV
HYHQWVDQQRXQFHPHQWV DFKLHYHPHQWVRI
SURMHFW ZDV H[WHQGHG WR  XQLYHUVLWLHV DW D
WKH0LQLVWU\
SDQ,QGLDOHYHOZLWKDWDUJHWRIWUDLQLQJPRUHWKDQ
VWXGHQWVLQ'LJLWDO,QGLDUHODWHGDFWLYLWLHV 6XSSRUW WR ,QGXVWU\ (YHQWV ,QVWLWXWLRQDO 
7KH ÀUVW EDWFK RI  ZRUNVKRSV ZDV KHOG RQ ÀQDQFLDO VXSSRUW ZDV H[WHQGHG WR YDULRXV HYHQWV
WK$XJXVW7KHUHLVJUHDWHUHPSKDVLV RUJDQL]HGE\LQGXVWU\DQGDFDGHPLFERGLHV
RQ SRVW ZRUNVKRS DFWLYLWLHV WKLV WLPH VR WKDW  ,QWHUQDWLRQDO&RQIHUHQFHRQ
DWWHQGHHV WDNH DZD\ WKH PHVVDJH RI 'LJLWDO H*RYHUQDQFH ,&H*29
,QGLDDQGIXUWKHUGLVVHPLQDWHWKHLQIRUPDWLRQLQ
7KHWKHGLWLRQRIWKH,QWHUQDWLRQDO&RQIHUHQFHRQ
WKHLU ORFDO FRPPXQLWLHV 7ZR DWWHQGHHV IURP
7KHRU\ DQG 3UDFWLFH RI (OHFWURQLF *RYHUQDQFH
HDFKZRUNVKRSZRXOGEHLQYLWHGWRDWWHQGWKH
,&(*29  ZDV KRVWHG E\ *RYHUQPHQW RI ,QGLD
,&(*29FRQIHUHQFHVFKHGXOHGLQ0DUFK
XQGHU WKH DHJLV DQG SDWURQDJH RI 0LQLVWU\ RI
LQ 1HZ 'HOKL  ZRUNVKRSV KDYH EHHQ
(OHFWURQLFVDQG,QIRUPDWLRQ7HFKQRORJ\ 0HLW< E\
FRQFOXGHG DV RQ 6HSWHPEHU   7KH
1DWLRQDO H*RYHUQDQFH 'LYLVLRQ 1H*'  DQG WKH
SURJUDPPHFXOPLQDWHGLQWRVWZRUNVKRSDW
8QLWHG1DWLRQV8QLYHUVLW\2SHUDWLQJ8QLWRQ3ROLF\
0HHUXW ZLWK SDUWLFLSDWLRQ RI PRUH WKDQ 
'ULYHQ (OHFWURQLF *RYHUQDQFH 818(*29  LQ
VWXGHQWV ZKLFK ZDV DGGUHVVHG E\ +RQ EOH
FROODERUDWLRQ ZLWK 81(6&2 6KUL 5DYL 6KDQNDU
0LQLVWHU
3UDVDG +RQ·EOH 8QLRQ 0LQLVWHU (OHFWURQLFV 
‡ ,,7)  7KH ,QGLD ,QWHUQDWLRQDO 7UDGH )DLU ,QIRUPDWLRQ7HFKQRORJ\DQG/DZ -XVWLFHFKDLUHG
 ,,7) ZDVRUJDQL]HGIURP1RYHPEHU WKH FRQIHUHQFH ZLWK 0V 0DULD 0DQXHO /HLWDR
DW3UDJDWL0DLGDQ1HZ'HOKL,732 0DUTXHV +RQ·EOH 0LQLVWHU RI 3UHVLGHQF\ 
KDVFKRVHQ´'LJLWDO,QGLDµDVWKHWKHPHLQWKLV $GPLQLVWUDWLYH0RGHUQL]DWLRQ3RUWXJDODVFRFKDLU
HGLWLRQRI,,7)7KHZRUNRIRUJDQL]LQJH[KLELWLRQ ,&(*29WRRNSODFHDW+RWHO$VKRN1HZ'HOKL
SDYLOLRQ FRQVWUXFWLRQ HYHQW PDQDJHPHQW IURP0DUFKZLWKDGRFWRUDOFROORTXLXPRQ
EUDQGLQJ DQG RWKHU DVVRFLDWHG DFWLYLWLHV KDV  0DUFK 7KH FRQIHUHQFH WKHPH ZDV ´%XLOGLQJ
EHHQ DVVLJQHG WR WKH 1DWLRQDO H*RYHUQDQFH .QRZOHGJH6RFLHWLHVIURP'LJLWDO*RYHUQPHQWWR
'LYLVLRQ 1H*' 'XULQJWKHHYHQWZDVLQVWDOOHG 'LJLWDO(PSRZHUPHQWµ
RQ VL[ WKHPDWLF ]RQHV DQG IRXU VHPLQDUV 
7KH,&(*29VHULHVIRFXVHVRQWKHLQWHUVHFWLRQRI
SDQHO GLVFXVVLRQV DQG  VWRU\ WHOOLQJ HYHQWV
WHFKQRORJ\ JRYHUQDQFH DQG GHYHORSPHQW
ZHUH DOVR RUJDQL]HG WR HQJDJH YLVLWRUV  7KH
3UHYLRXVFRQIHUHQFHVWRRNSODFHLQ0DFDRLQ
SDYLOLRQZDVDZDUGHGWKHÀUVWSUL]HXQGHUWKH
&DLUR LQ  %RJRWD LQ  %HLMLQJ LQ 
7KHPDWLF&DWHJRU\
7DOOLQQ LQ  $OEDQ\ LQ  6HRXO LQ 


 $QQXDO5HSRUW

,QDXJXUDWLRQRI,&H*290DUFK

*XLPDUDHV LQ  DQG 0RQWHYLGHR LQ  7KH E\ VLPXOWDQHRXV SDUDOOHO EUHDNDZD\ VHVVLRQV
VHULHVKDVEHFRPHDVRXUFHRIVLJQLÀFDQWUHVHDUFK LQFOXGLQJ SDSHU SUHVHQWDWLRQV RQ  WKHPDWLF
DQGSROLF\LQVLJKWDEOHWRUHDFKQDWLRQDODQGJOREDO WUDFNV  LQYLWHG VHVVLRQV DQG  VSHFLDO HYHQWV
SROLF\DQGUHVHDUFKDXGLHQFHV 7KH SRVWHU H[KLELWLRQ DQ LQGXVWU\ H[KLELWLRQ DQG
FXOWXUDOHYHQLQJVHQKDQFHGWKHH[SHULHQFHIRUERWK
,&(*29 EURXJKW LQ  SDUWLFLSDQWV IURP
SUHVHQWHUVDQGDXGLHQFH
RYHU  FRXQWULHV LQFOXGLQJ ODUJH JRYHUQPHQW
SDUWLFLSDWLRQIURP,QGLD7KHHGLWLRQUHFHLYHGD $QRWKHU KDOOPDUN ZDV WKH VLJQLÀFDQW QXPEHU RI
UHFRUGQXPEHURISDSHUVXEPLVVLRQV ZKLFKLV LQVWLWXWLRQDO SDUWQHUVKLSV WKDW EURXJKW LPPHQVH
PRUH WKDQ  WLPHV WKH SUHYLRXV UHFRUG  E\ WKH HQULFKPHQWLQWKHUXQXSWRWKHFRQIHUHQFHDVDOVR
GHDGOLQH RI 2FWREHU 7KHVH SDSHUV ZHUH WKHDFWXDOGD\VRIWKHFRQIHUHQFH$VPDQ\DV
ZULWWHQ E\ DXWKRUV IURP RYHU  GLIIHUHQW DFDGHPLFSDUWQHUVZHUHRQERDUG
QDWLRQDOLWLHV %DVHG RQ PXOWLSOH UHYLHZV E\ DQ
7KHFRQIHUHQFHEHJDQRQDKLJKQRWHVXVWDLQHGWKH
LQWHUQDWLRQDO WHDP  SDSHUV DFURVV  GLIIHUHQW
WHPSRDFURVVDOOGD\VDQGHQGHGDOVRRQDKLJK
WUDFNV WKHPHV DQGSRVWHUVZHUHVHOHFWHGIRU
QRWH'HWDLOVFDQEHVHHQRQOLQHRQ'LJLWDO,QGLDDQG
SUHVHQWDWLRQ DW WKH FRQIHUHQFH 2YHU WKH FRUH 
,&(*29 SRUWDOV DW GLJLWDOLQGLDJRYLQ DQG
GD\V,&(*29WUDYHUVHGDULFKDVVRFLDWLRQRI
LFHJRYRUJUHVSHFWLYHO\
NH\QRWHOHFWXUHVDQGSOHQDU\GLVFXVVLRQVÁDQNHG


 &+$37(5
0$.(,1,1',$(/(&7521,&6
0$18)$&785,1*

2YHUYLHZ7KH*RYHUQPHQWDWWDFKHVKLJKSULRULW\ HFRQRP\SURYLGHVDPSOHVFRSHLQWHUPVRIPDUNHW
WRHOHFWURQLFV ,7KDUGZDUHPDQXIDFWXULQJVRDVWR GHPDQGIRUPDQXIDFWXULQJHOHFWURQLFVSURGXFWVLQ
UHDFKQHW]HUR,PSRUWV(OHFWURQLFVPDQXIDFWXULQJ ,QGLD$WWKHVDPHWLPHLWLVZHOOUHFRJQL]HGWKDWWKH
DOVR KDV WKH SRWHQWLDO WR JHQHUDWH GRPHVWLF HOHFWURQLFVVHFWRULVRSHQWRH[WHUQDOFRPSHWLWLRQ
HPSOR\PHQW DSDUW IURP HQDEOLQJ F\EHUVHFXUH ,QGLDLVDVLJQDWRU\WRWKH,QIRUPDWLRQ7HFKQRORJ\
HFRV\VWHP $FFRUGLQJO\ WKH SURPRWLRQ RI $JUHHPHQW ,7$  ZKLFK UHVXOWHG LQ D ]HUR GXW\
HOHFWURQLFVPDQXIDFWXULQJLVRQHRIWKHSLOODUVRIWKH UHJLPHRQLPSRUWRIWKHJRRGVFRYHUHGXQGHUWKDW
'LJLWDO,QGLDSURJUDPPH $JUHHPHQW,QGLDDOVRKDV)UHH7UDGH$JUHHPHQWV
)7$V  DQG 3UHIHUHQWLDO 7UDGH $JUHHPHQWV 37$ 
,QGLD LV QRZ D IDVW JURZLQJ PDUNHW IRU HOHFWURQLF
ZLWK VHYHUDO FRXQWULHV WUDGLQJ EORFNV ZKLFK KDV
JRRGV,WLVHVWLPDWHGWKDWGHPDQGRIHOHFWURQLFV
HQDEOHG ]HUR GXW\ LPSRUW RI LWHPV QRW FRYHUHG
SURGXFWV DQG V\VWHPV LQ ,QGLD ZLOO JURZ WR DERXW
XQGHU,7$
86'  %LOOLRQ E\  7KLV IHDWXUH RI WKH



 $QQXDO5HSRUW

.HHSLQJWKHIRUHJRLQJIDFWRUVLQYLHZWKHFXUUHQW ([FLVH'XWLHVLVDOVRSURYLGHG7KHLQFHQWLYHVDUH
VWUDWHJ\LVWRSXWLQSODFHDPRUHKROLVWLFLQYHVWRU SURYLGHG RQ UHLPEXUVHPHQW EDVLV 7KH SROLF\
IULHQGO\ DQG PDUNHW GULYHQ HFRV\VWHP WKDW LV SURYLGHV IRU DQ LQWHUPLQLVWHULDO $SSUDLVDO
FRQGXFLYH WR LQYHVWPHQW $V VXFK IRUHLJQ GLUHFW &RPPLWWHH WR HYDOXDWH LQYHVWPHQW DSSOLFDWLRQV
LQYHVWPHQW LV DOUHDG\ SHUPLWWHG WR WKH H[WHQW RI %DVHG RQ WKH UHFRPPHQGDWLRQ RI $SSUDLVDO
XQGHUDXWRPDWLFURXWH7KHUHLVQR,QGXVWULDO &RPPLWWHH DSSURYDO RI &RPSHWHQW $XWKRULW\ LV
OLFHQVH UHTXLUHPHQW DQG SD\PHQW RI WHFKQLFDO REWDLQHG
NQRZKRZIHHDQGUR\DOW\IRUWHFKQRORJ\WUDQVIHULV
7KH8QLRQ&DELQHWLQLWVPHHWLQJKHOGRQVW-XO\
XQGHUWKHDXWRPDWLFURXWH
 DSSURYHG WKH H[WHQVLRQ RI 06,36 IRU ÀYH
7KHPHDVXUHVEHLQJLPSOHPHQWHGDWSUHVHQWDLPWR \HDUVDQGDOVRDSSURYHGDPHQGPHQWRI06,36LQ
L Q F H Q W L Y L ] H  L Q Y H V W P H Q W   H Q F R X U D J H  5 ' RUGHUWRVLPSOLI\WKHSURFHGXUHDQGHQKDQFHPHQWRI
LQQRYDWLRQV DQG VWDUWXSV DQG SURYLGH DQ VFRSH
DSSURSULDWH IUDPHZRUN IRU SURGXFW VWDQGDUGV
)XUWKHUWKH8QLRQ&DELQHWLQLWVPHHWLQJKHOGRQ
)XUWKHU WKH HIIRUWV DUH WR HQVXUH WKDW WKH WDULIIWD[
DSSURYHGFHUWDLQDPHQGPHQWVLQWKH0
UHJLPH LV DOLJQHG WR HQFRXUDJLQJ PDQXIDFWXULQJ
6,36SROLF\ZKLFKZHUHQRWLÀHGRQDV
DQGWRPHHWLQJWKHQHHGVRIWKH,QGLDQHFRQRP\
SHUZKLFKDSSOLFDWLRQVXQGHUWKH6FKHPHZLOOEH
7KHVH HIIRUWV DUH H[SHFWHG WR HQDEOH ,QGLD WR
UHFHLYHG WLOO VW 'HFHPEHU  RU WLOO VXFK WLPH
LQFUHDVLQJO\ PHHW WKH JURZWK GHPDQG IRU
WKDW WKH LQFHQWLYH FRPPLWPHQW UHDFKHV C
H O H F W U R Q L F V  S U R G X F W V  D Q G  E H F R P H  P R U H
FURUH ZKLFKHYHU LV HDUOLHU ,QFHQWLYHV XQGHU WKH
FRPSHWLWLYH LQWHUQDWLRQDOO\ LQ HOHFWURQLFV
VFKHPHZLOOQRZEHDYDLODEOHIRULQYHVWPHQWVPDGH
PDQXIDFWXULQJ6RPHVSHFLÀFPHDVXUHVVFKHPHV
ZLWKLQ\HDUVIURPWKHGDWHRIDSSURYDO$VHSDUDWH
LQWKHDUHDRIPDQXIDFWXULQJDUHRXWOLQHGDVIROORZV
FRPPLWWHH ZLOO EH VHW XS IRU PHJD SURMHFWV
0HDVXUHV6FKHPHV HQYLVDJLQJ PRUH WKDQ C  FURUH LQYHVWPHQWV
7KHVH DPHQGPHQWV DUH H[SHFWHG WR H[SHGLWH
/DUJH6FDOH0DQXIDFWXULQJ
LQYHVWPHQWVLQHOHFWURQLFV
0RGLÀHG 6SHFLDO ,QFHQWLYH 3DFNDJH 06,36  ,Q
7KHVWDWXVRI06,36DSSOLFDWLRQVDVRQVW
RUGHUWRSURPRWHODUJHVFDOHPDQXIDFWXULQJLQWKH
'HFHPEHU   6R IDU WRWDO  DSSOLFDWLRQV
FRXQWU\ D 0RGLÀHG 6SHFLDO ,QFHQWLYH 3DFNDJH
6FKHPH 06,36  ZDV DQQRXQFHG E\ WKH ZLWKLQYHVWPHQWVDPRXQWLQJWR‫  ڎ‬FURUH
*RYHUQPHQW LQ -XO\  WR RIIVHW GLVDELOLW\ DQG KDYH EHHQ UHFHLYHG XQGHU 06,36 RI ZKLFK 
DWWUDFW LQYHVWPHQWV LQ (OHFWURQLFV 6\VWHP 'HVLJQ DSSOLFDWLRQV ZLWK LQYHVWPHQW RI DSSUR[LPDWHO\
DQG0DQXIDFWXULQJ (6'0 ,QGXVWULHV7KHVFKHPH CFURUHKDYHEHHQDSSURYHGDSSOLFDWLRQV
SURYLGHV VXEVLG\ IRU LQYHVWPHQWV LQ FDSLWDO ZLWKLQYHVWPHQWVRIDSSUR[LPDWHO\CFURUHKDYH
H[SHQGLWXUH IRU LQYHVWPHQWV LQ 6SHFLDO EHHQUHFRPPHQGHGE\WKH$SSUDLVDO&RPPLWWHH
(FRQRPLF=RQHV 6(=V DQGLQQRQ6(=6,W DSSOLFDWLRQVZLWKLQYHVWPHQWVRIDSSUR[LPDWHO\
DOVRSURYLGHVIRUUHLPEXUVHPHQWVRI&9'H[FLVHIRU CFURUHKDYHEHHQFORVHGGXHWRLQFRPSOHWH
FDSLWDOHTXLSPHQWIRUWKHQRQ6(=XQLWV)RUVHOHFW DSSOLFDWLRQV RU QRW PHHWLQJ WKH HOLJLELOLW\ FULWHULD
YHU\ KLJK WHFKQRORJ\ DQG KLJK FDSLWDO LQYHVWPHQW XQGHUWKHVFKHPHDQGDSSOLFDWLRQVLQYROYLQJ
XQLWVOLNHIDEVUHLPEXUVHPHQWRIFHQWUDOWD[HVDQG LQYHVWPHQWVRICFURUHDUHXQGHUSURFHVV
GXWLHVZKLFKLQFOXGH&XVWRPVGXW\6HUYLFH7D[DQG


0LQLVWU\RI(OHFWURQLFV ,QIRUPDWLRQ7HFKQRORJ\ 0HLW<

'LVEXUVHPHQW RI LQFHQWLYHV ZDV PDGH WR 0V )XUWKHUSHULRGRI\HDUVLVDYDLODEOHIRUGLVEXUVHPHQW

%RVFK $XWRPRWLYHV (OHFWURQLFV %DQJDORUH WR WKH RIIXQGVIRUWKHDSSURYHGDSSOLFDQWV$VVLVWDQFHIRU
WXQH RI C FURUH DQG RI C ODNK WR 0V W K H  S U R M H F W V  L Q  * U H H Q À H O G  ( O H F W U R Q L F V
'HVDL(OHFWURQLFV 3 /WG3XQHLQ)<7KH 0DQXIDFWXULQJ&OXVWHUVLVUHVWULFWHGWRRIWKH
LQFHQWLYHV RI C FURUH WR 0V 6*6 7HFKQLNV SURMHFWFRVWVXEMHFWWRDFHLOLQJRIC&URUHIRU
CFURUHWR0V%RVFK$XWRPRWLYHDQGCODNKV HYHU\DFUHVRIODQG)RUODUJHUDUHDVSURUDWD
WR 0V 'HVDL HOHFWURQLFV KDYH EHHQ GLVEXUVHG LQ FHLOLQJ DSSOLHV $W WKH ORZHU HQG WKH H[WHQW RI
WKH )<  ,Q  WKH GLVEXUVHPHQW RI VXSSRUWLVGHFLGHGE\WKH6WHHULQJ&RPPLWWHHIRU
LQFHQWLYHV KDYH EHHQ PDGH WR 0V 'HVDL &OXVWHUV 6&& VXEMHFWWRWKHFHLOLQJRIC&URUH
(OHFWURQLFV 3  /WG 3XQH RI C ODNK WR 0V )RU %URZQÀHOG (0&  RI WKH FRVW RI
*HQXV3RZHU,QIUDVWUXFWXUH3YW/LPLWHG-DLSXURI LQIUDVWUXFWXUH VXEMHFW WR D FHLOLQJ RI  &URUH LV
C FURUH DQG WR 0V %RVFK $XWRPRWLYHV SURYLGHGDVJUDQW
(OHFWURQLFV%DQJDORUHRICFURUH
7LOO0DUFK0HLW<KDVUHFHLYHGDSSOLFDWLRQV
 (OHFWURQLF&OXVWHUV XQGHU(0&VFKHPHDSSOLFDWLRQVIRUVHWWLQJXSRI
*UHHQÀHOG(0&VDQGDSSOLFDWLRQVIRUVHWWLQJXS
7R FUHDWH DQG VWUHQJWKHQ WKH LQIUDVWUXFWXUH
RI &RPPRQ )DFLOLW\ &HQWUHV &)&  LQ %URZQÀHOG
HFRV\VWHP IRU HOHFWURQLFV PDQXIDFWXULQJ WKH
&OXVWHUVRXWRIZKLFK0LQLVWU\KDVDFFRUGHGÀQDO
*RYHUQPHQW QRWLÀHG (OHFWURQLFV 0DQXIDFWXULQJ
DSSURYDOWRWKLUWHHQ  *UHHQÀHOG(0&VDQGWZR
&OXVWHU (0& 6FKHPHLQ2FWREHUWRVXSSRUW
  &)&V LQ %URZQÀHOG &OXVWHU DQG ,Q 3ULQFLSOH
FUHDWLRQRIZRUOGFODVVLQIUDVWUXFWXUHIRUDWWUDFWLQJ
DSSURYDOWRWZHOYH  *UHHQÀHOG(0&VDQGWZR  
LQYHVWPHQWV LQ HOHFWURQLFV PDQXIDFWXULQJ 7KH
&)&V LQ %URZQÀHOG &OXVWHUV 7KH GHWDLOV DUH DV
6FKHPH LV RSHQ IRU UHFHLYLQJ DSSOLFDWLRQV IRU D
IROORZV
SHULRG RI ÀYH \HDUV IURP WKH GDWH RI QRWLÀFDWLRQ

)LQDO$SSURYHG*UHHQÀHOG(0&V
61R 6WDWH /RFDWLRQ&LW\
 $QGKUD3UDGHVK &KLODPDWKXU$QDQWDSXU'LVWULFW
  9LOODJH&KHULYL6DW\DYHGX0DQGDO&KLWWRU'LVWULFW
 &KKDWWLVJDUK 9LOODJH7XWD7HKVLO$EKDQSXU1D\D5DLSXU
 *XMDUDW 9LOODJH7XQGD7DOXND0XQGUD'LVWULFW.XWFK
 *RD 9LOODJH]WXHUQ7DOXND3HUQHUQ1RUWK*RD'LVWULFW
 -KDUNKDQG $GLW\DSXU6DUDLNHOD.KDUVDZDQ'LVWULFW
 .HUDOD .DNNDQDG9LOODJH.DQD\DQQXU7DOXN(UQDNXODP'LVWULFW
 0DGK\D3UDGHVK %DGZDL%KRSDO
  3XUYD-DEDOSXU
 2GLVKD ,QIRYDOOH\%KXEDQHVZDU,QGXVWULDO$UHD.KXUGD'LVWULFW
 5DMDVWKDQ 63/6DODUSXU.KXVKNHUD%KLZDGL
 :HVW%HQJDO 6HFWRU,9 9)DOWD,QGXVWULDO&HQWUH365DPQDJDU6RXWK3DUDJDQDV'LVW
 :HVW%HQJDO 1DLKDWLWRZQ1RUWK3DUJDQDVGLVWULFW


 $QQXDO5HSRUW

)LQDO$SSURYHG&RPPRQ)DFLOLW\&HQWUHV &)& LQ%URZQÀHOG(0&

61R 6WDWH /RFDWLRQ&LW\
 .DUQDWDND 3ORW1R.,$'%,QGXVWULDO$UHD+HEEDO+RWWDJDOOL0\VRUH
 0DKDUDVKUD 3ORW1R36KHQGUD)LYH6WDU,QGXVWULDO$UHD$XUDQJDEDG'LVWULFW

+RQ·EOH3ULPH0LQLVWHUODLGWKHIRXQGDWLRQVWRQHIRU )LUVW LQVWDOOPHQW RI *RYHUQPHQW RI ,QGLD *UDQW

VHWWLQJXSRI*UHHQÀHOG(OHFWURQLFV0DQXIDFWXULQJ DPRXQWLQJWRCFURUHKDVEHHQUHOHDVHGWR
&OXVWHUDW7XHP7DOXND3HUQHP1RUWK*RD'LVWULFW 0V0XQGUD6RODU7HFKQRSDUN3ULYDWH/LPLWHGIRU
RQ WK 1RYHPEHU  )RXQGDWLRQ 6WRQH IRU LPSOHPHQWDWLRQ RI WKH *UHHQÀHOG (0& DW 0XQGUD
VHWWLQJXSRI*UHHQÀHOG(OHFWURQLFV0DQXIDFWXULQJ 7DOXN.XWFK'LVWULFW*XMDUDWLQ)<7LOOQRZ
&OXVWHUDW&KLODPDWKXU$QDQWDSXU'LVWULFW$QGKUD DQDPRXQWRICFURUHKDVEHHQUHOHDVHGWRÀYH
3UDGHVKZDVODLGRQ SURMHFWVXQGHUWKH(0&VFKHPH

/LVWRI*UHHQÀHOG(0&VDFFRUGHG,Q3ULQFLSOHDSSURYDO
61R 6WDWH /RFDWLRQ&LW\
 $QGKUD3UDGHVK 9LOODJH*XUUDPDSDOHP3HQGXUWKL0DQGDO9LVDNKDSDWQDP
 $QGKUD3UDGHVK 9LNUXWKDPDOD9LOODJH<HUSDGX0DQGDO&KLWWRU
 $QGKUD3UDGHVK 7LUXSDWL5HQLJXQWD0DQGDO&KLWWRU
 %LKDU $EJLOODYLOODJH*DXULFKDN'LVWULFW3DWQD
 *XMDUDW 9LOODJH.KRUDM7DOXN6DQDQG'LVWULFW$KPDGDEDG
 5DMDVWKDQ .DUROL,QGXVWULDO$UHD%KLZDGL'LVWULFW$OZDU
 7DPLO1DGX $QQXU7DOXN&RLPEDWRUH
 7HODQJDQD )DEFLW\+\GHUDEDG
 7HODQJDQD 5DYLUD\DO0DKHVKZDUDP5DQJDUHGG\'LVWULFW
 8WWDU3UDGHVK 3ORW1R$6HFWRU<DPXQD([SUHVVZD\*UHDWHU1RLGD
 8WWDU3UDGHVK (FRWHFK 9, 9,, ,QGXVWULDODUHD*UHDWHU1RLGD
 8WWDU3UDGHVK 3ORW1R$6HFWRU<DPXQD([SUHVVZD\

/LVWRI&RPPRQ)DFLOLW\&HQWUHVDFFRUGHG,Q3ULQFLSOHDSSURYDO
61R 6WDWH /RFDWLRQ&LW\
 .DUQDWDND (OHFWURQLF&LW\%DQJDORUH
 0DKDUDVKWUD 3LPSUL,QGXVWULDO$UHD3XQH


0LQLVWU\RI(OHFWURQLFV ,QIRUPDWLRQ7HFKQRORJ\ 0HLW<

 6HPLFRQGXFWRU:DIHU)DEV  ,QFHQWLYHVIRU)DEOHVV'HVLJQ

7KH8QLRQ&DELQHWLQLWVGHFLVLRQGDWHG 6HPLFRQGXFWRUVDOVRNQRZQDVFKLSVRU,&VDUHDW
KDGVHWXSDQ(PSRZHUHG&RPPLWWHH (& ZLWKWKH WKHKHDUWRIDQ\HOHFWURQLFVSURGXFWDQGFRQVWLWXWH
PDQGDWH LQWHUDOLD WR LGHQWLI\ WHFKQRORJ\ DQG DURXQGRIWKHWRWDOYDOXHRIWKH%LOORI0DWHULDO
SRWHQWLDO LQYHVWRUV IRU VHWWLQJ XS VHPLFRQGXFWRU %20  DQG LQ FDVH RI KLJKHQG HTXLSPHQW DQG
ZDIHU IDEULFDWLRQ )$%  PDQXIDFWXULQJ IDFLOLWLHV LQ PRELOHKDQGVHWVWKLVFRQWHQWJRHVDVKLJKDV
WKH FRXQWU\ DQG WR UHFRPPHQG WKH QDWXUH DQG 6 H P L F R Q G X F W R U  F K L S  P D Q X I D F W X U L Q J  L V
TXDQWXP RI *RYHUQPHQW VXSSRUW 7KH (& ZDV FKDUDFWHUL]HGE\WZRW\SHRIFRPSDQLHV,QWHJUDWHG
VXEVHTXHQWO\UHFRQVWLWXWHGE\WKH&DELQHWYLGHLWV 'HYLFH 0DQXIDFWXUHUV ,'0V  DQG )DEOHVV
GHFLVLRQGDWHG 0DQXIDFWXUHUV 7KH ,'0V VXFK DV ,QWHO 7H[DV
,QVWUXPHQWV  GHVLJQV PDQXIDFWXUHV DQG VHOOV LWV
7KH (& DGRSWHG D SURSRVDOEDVHG LQLWLDWLYH IRU RZQ FKLSV ZKLOH IDEOHVV FRPSDQLHV OLNH
LQYLWLQJ([SUHVVLRQRI,QWHUHVW (R, IRUVHWWLQJXSRI 4XDOFRPP%URDGFRP GHVLJQVDQGVHOOVLWVFKLSV
)$%IDFLOLWLHVZLWKWKHDLPRIDWWUDFWLQJLQYHVWPHQWV EXW JHWV WKH FKLS PDQXIDFWXUHG E\ D WKLUGSDUW\
LQWRDFRPSOH[DQGÀQDQFLDOO\FKDOOHQJLQJKLWHFK 3UHVHQWO\PRVWRIWKHPDMRUFKLSLQQRYDWLRQVKDYH
PDQXIDFWXULQJ VHFWRU ,Q UHVSRQVH WR WKH (R, FRPHIURPIDEOHVVGHVLJQFRPSDQLHV$3ROLF\IRU
SURSRVDOV ZHUH UHFHLYHG IURP WZR EXVLQHVV 3URPRWLRQ RI )DEOHVV 'HVLJQ ,QGXVWU\ LV XQGHU
FRQVRUWLD RQHOHGE\0V -DLSUDNDVK $VVRFLDWHV FRQVLGHUDWLRQLQWKLV0LQLVWU\
/LPLWHG ZLWK,%086$DQG7RZHU6HPLFRQGXFWRU 3ROLF\
/LPLWHG,VUDHODVSDUWQHUVDQGSURSRVHGORFDWLRQDV
8WWDU 3UDGHVK  DQG WKH RWKHU OHG E\ 0V +60&  3UHIHUHQFH WR 'RPHVWLF (OHFWURQLF
3URGXFWV
7HFKQRORJLHV,QGLD3YW/WG ZLWK670LFURHOHFWURQLFV
DQG 6LOWHUUD 0DOD\VLD 6GQ %KG DV SDUWQHUV DQG 7KH 0LQLVWU\ RI (OHFWURQLFV DQG ,QIRUPDWLRQ
SURSRVHG ORFDWLRQ DV 3UDQWLM *XMDUDW  %RWK WKH 7HFKQRORJ\ 0HLW< QRWLÀHGWKHSROLF\IRUSURYLGLQJ
FRQVRUWLDZHUHUHTXLUHGWRWDNHFHUWDLQDFWLRQVDQG SUHIHUHQFHWRGRPHVWLFDOO\PDQXIDFWXUHGHOHFWURQLF
VXEPLW WKH UHTXLVLWH GRFXPHQWV DV HQXQFLDWHG LQ SURGXFWV LQ *RYHUQPHQW SURFXUHPHQW IRU LWV RZQ
WKH /HWWHU RI ,QWHQW /R,  IRU GHPRQVWUDWLRQ RI XVHDQGQRWZLWKDYLHZWRFRPPHUFLDOUHVDOHRUZLWK
FRPPLWPHQW D YLHZ WR XVH LQ WKH SURGXFWLRQ RI JRRGV IRU
FRPPHUFLDOVDOHRQ
%RWK WKH FRQVRUWLD VRXJKW H[WHQVLRQV RQ PXOWLSOH
RFFDVLRQV IRU VXEPLVVLRQ RI UHTXLVLWH GRFXPHQWV 7KH '0(3V DUH SURGXFWV PDQXIDFWXUHG E\
IRU GHPRQVWUDWLRQ RI FRPPLWPHQW ZKLFK ZDV FRPSDQLHV UHJLVWHUHG LQ ,QGLD DQG HQJDJHG LQ
SURYLGHGWRWKHPE\(&7KHFRQVRUWLXPOHGE\0V 0DQXIDFWXUH LQ ,QGLD DQG LQFOXGLQJ &RQWUDFW
-DLSUDNDVK $VVRFLDWHV /WG ZLWKGUHZ IURP WKH 0DQXIDFWXUHUV EXW H[FOXGLQJ WUDGHUV $OO
SURMHFWRQQG0DUFK7KHFRQVRUWLXPOHG FRPSDQLHV UHJLVWHUHG LQ ,QGLD HQJDJHG LQ
E\ 0V +60& 7HFKQRORJLHV ,QGLD 3YW/WG ZDV PDQXIDFWXULQJRIHOHFWURQLFSURGXFWVLQ,QGLDDQG
JLYHQDÀQDOH[WHQVLRQXQWLOWK)HEUXDU\IRU WKH VROH VHOOLQJ DJHQWV DXWKRULVHG GLVWULEXWRUV
VXEPLVVLRQRIDOOWKHGRFXPHQWVIRUGHPRQVWUDWLRQ DXWKRULVHG GHDOHUV DXWKRULVHG VXSSO\ KRXVHV RI
RIFRPPLWPHQW WKHGRPHVWLFPDQXIDFWXUHUVRIHOHFWURQLFSURGXFWV
DUHHOLJLEOHIRUFRQVLGHUDWLRQXQGHUWKH3ROLF\7KH


 $QQXDO5HSRUW

HOHFWURQLFSURGXFWVWREHQRWLÀHGXQGHUWKLVSROLF\ 5HYLVHG3ROLF\*XLGHOLQHVIRUSURYLGLQJSUHIHUHQFH
VKRXOG PHHW WKH PLQLPXP  GRPHVWLF YDOXH WRGRPHVWLFDOO\PDQXIDFWXUHGHOHFWURQLFSURGXFWV
DGGLWLRQ LQ WHUPV RI %LOO RI 0DWHULDO %R0  IURP LQ*RYHUQPHQWSURFXUHPHQWKDYHEHHQLVVXHGRQ
GRPHVWLF PDQXIDFWXUHUV 7KH SHUFHQWDJH RI E\WKH0LQLVWU\
SURFXUHPHQWWREHPDGHIURP'0(3 V VKDOOQRWEH  &RPSXOVRU\ 6DIHW\ 6WDQGDUGV IRU
OHVVWKDQRIWKHWRWDOSURFXUHPHQWYDOXHRIWKDW (OHFWURQLFV
HOHFWURQLFSURGXFW V 
.HHSLQJ LQ YLHZ WKH VDIHW\ RI
7KH SROLF\ LV DSSOLFDEOH WR DOO 0LQLVWULHV  ,QGLDQ FRQVXPHUV DQG WR FXUE
'HSDUWPHQWV H[FHSW0LQLVWU\RI'HIHQFH DQGWKHLU LQÁRZRIVXEVWDQGDUGHOHFWURQLF
DJHQFLHV IRU HOHFWURQLF SURGXFWV SXUFKDVHG IRU SURGXFWV WKH ´(OHFWURQLFV DQG
*RYHUQPHQWDO SXUSRVHV DQG ZLWK D YLHZ WR ,QIRUPDWLRQ 7HFKQRORJ\ *RRGV
FRPPHUFLDOUHVDOHRUZLWKDYLHZWRXVHLQJRRGVIRU 5HTXLUHPHQWV IRU &RPSXOVRU\
FRPPHUFLDO VDOH 7KLV LV DOVR DSSOLFDEOH IRU 5HJLVWUDWLRQ  2UGHU µ ZDV
SURFXUHPHQWRIHOHFWURQLFSURGXFWVPDGHXQGHUDOO QRWLÀHG RQ UG 2FW  E\
&HQWUDOO\6SRQVRUHG6FKHPHVDQGJUDQWVPDGHE\ 0HLW< XQGHU WKH SURYLVLRQ RI &RPSXOVRU\
&HQWUDO*RYHUQPHQW 5HJLVWUDWLRQ 6FKHPH RI WKH %XUHDX RI ,QGLDQ
1LQH JHQHULF HOHFWURQLF SURGXFWV ZKLFK DUH 6WDQGDUGV %,6  $FW  7KLV 2UGHU FDPH LQWR
SURFXUHGDFURVVVHFWRUVYL]'HVNWRS3&V/DSWRS HIIHFW IURP UG -XO\  7KH 2UGHU FDOOV IRU
3&V7DEOHW3&V'RW0DWUL[3ULQWHUV6PDUW&DUGV SURKLELWLRQWRPDQXIDFWXUHUVHOOXQOHVVWKHVHJRRGV
/(' 3URGXFWV %LRPHWULF $FFHVV &RQWURO KDYH EHHQ WHVWHG WR ,QGLDQ 6DIHW\ 6WDQGDUGV
$XWKHQWLFDWLRQ 'HYLFHV %LRPHWULF )LQJHU 3ULQW UHJLVWHUHG ZLWK %,6 DQG GLVSOD\ UHJLVWUDWLRQ ORJR
6HQVRUV DQG %LRPHWULF ,ULV 6HQVRUV KDYH EHHQ 6WDQGDUG0DUN 
QRWLÀHG E\ WKH 0HLW< DQG  7HOHFRPPXQLFDWLRQV 7KHLQLWLDWLYHLVIRU
3URGXFWVKDYHEHHQQRWLÀHGE\WKH'HSDUWPHQWRI
7HOHFRPPXQLFDWLRQV 'R7  LQ IXUWKHUDQFH RI WKH y 8SJUDGLQJ TXDOLW\ RI GRPHVWLF SURGXFWV DQG
SROLF\ '*6 ' KDV LVVXHG JXLGHOLQHV IRU EULQJLQJLQJOREDOFRPSHWLWLYHQHVV
LPSOHPHQWLQJ WKH SROLF\ LQ WKHLU UDWH FRQWUDFW y 3URYLGLQJ ,QGLDQ FRQVXPHUV WKH ULJKW WR HQMR\
SURFHVV$Q2QOLQH0RQLWRULQJ6\VWHP´ZZZGHLW\ JRRGTXDOLW\SURGXFWV
SPDJRYLQµ KDV EHFRPH RSHUDWLRQDO ZHI y 3URMHFWLQJ,QGLDDVDFRXQWU\ZLWKKLJKTXDOLW\RI
           I R U  U H S R U W L Q J  E \  0 L Q L V W U L H V   (OHFWURQLFV ,7SURGXFWV
'HSDUWPHQWVDERXWWKHFRPSOLDQFHRI3ROLF\$VRQ
            ( L J K W \  ) L Y H     0 L Q L V W U L H V  y 6WRSSLQJGXPSLQJRIQRQFRPSOLDQWJRRGV
'HSDUWPHQWV$JHQFLHV KDYH EHHQ SURYLGHG WKH y 3URWHFWLQJOHJLWLPDWHLQWHUHVWVRIEXVLQHVVHVLQ
DFFHVV FUHGHQWLDOV 8VHU ,GV DQG 3DVVZRUGV  IRU ,QWHUQDWLRQDOWUDGHDJUHHPHQWV
VXEPLWWLQJ WKH FRPSOLDQFH UHSRUWV RQ WKH 30$ 7KLUW\   FDWHJRULHV RI HOHFWURQLF SURGXFWV KDYH
RQOLQH PRQLWRULQJ V\VWHP ZZZGHLW\SPDJRYLQ  EHHQQRWLÀHGXQGHUWKH2UGHU


0LQLVWU\RI(OHFWURQLFV ,QIRUPDWLRQ7HFKQRORJ\ 0HLW<

/LVWRI,WHPV1RWLÀHGXQGHU&RPSXOVRU\5HJLVWUDWLRQ2UGHU²3KDVH,
61R 1RWLÀHG,WHPV '
 DWHRIFRPLQJLQWRHIIHFW
 (OHFWURQLF*DPHV 9LGHR  UG-XO\
 /DSWRS1RWHERRN7DEOHWV UG-XO\
 3ODVPD/&'/('7HOHYLVLRQRIVFUHHQVL]HµRUDERYH UG-XO\
 2SWLFDOGLVFSOD\HUVZLWKEXLOWLQDPSOLÀHUVRULQSXWSRZHUZ DERYH UG-XO\
 0LFURZDYH2YHQV UG-XO\
 9LVXDO'LVSOD\8QLWV9LGHR0RQLWRUVRIVFUHHQVL]HµDQGDERYH UG-XO\
 3ULQWHUV3ORWWHUV UG-XO\
 6FDQQHUV UG-XO\
 :LUHOHVV.H\ERDUGV UG-XO\
 7HOHSKRQH$QVZHULQJ0DFKLQH UG-XO\
 $PSOLÀHUVZLWKLQSXWSRZHUZDQGDERYH UG-XO\
 (OHFWURQLF0XVLFDO6\VWHPVZLWKLQSXWSRZHUZDQGDERYH UG-XO\
 (OHFWURQLFVFORFNVZLWK0DLQVSRZHUV UG-XO\
 6HW7RS%R[ UG-XO\
 $XWRPDWLF'DWD3URFHVVLQJ0DFKLQH UG-XO\

/LVWRI,WHPV1RWLÀHGXQGHU&RPSXOVRU\5HJLVWUDWLRQ2UGHU²3KDVH,,
61R 1RWLÀHG,WHPV '
 DWHRIFRPLQJLQWRHIIHFW
 3RZHU$GDSWRUVIRU,7(TXLSPHQWV VW'HF
 3RZHU$GDSWRUVIRU$XGLR9LGHR 6LPLODU(OHFWURQLF$SSDUDWXV VW'HF
 836,QYHUWRUVRIUDWLQJ”N9$ VW0DU
 '&RU$&6XSSOLHG(OHFWURQLF&RQWUROJHDUIRU/('0RGXOHV VW'HF
 6HDOHG6HFRQGDU\&HOOV%DWWHULHVFRQWDLQLQJ$ONDOLQHRURWKHU
 QRQDFLG(OHFWURO\WHVIRUXVHLQSRUWDEOHDSSOLFDWLRQV VW-XQ
 )L[HG*HQHUDO3XUSRVH/('/XPLQDLUHV VW0DUFK
 6HOI%DOODVWHG/('/DPSVIRU*HQHUDO/LJKWLQJ6HUYLFHV WK6HSW
 0RELOH3KRQHV WK6HSW
 &DVK5HJLVWHUV WK0D\
 3RLQWRI6DOH7HUPLQDOV WK0D\
 &RS\LQJ0DFKLQHV'XSOLFDWRUV WK0D\
 6PDUW&DUG5HDGHUV WK0D\
 0DLO3URFHVVLQJ0DFKLQHV3RVWDJH0DFKLQHV)UDQNLQJ0DFKLQHV WK0D\
 3DVVSRUW5HDGHU WK0D\
 3RZHU%DQNVIRUXVHLQ3RUWDEOH$SSOLFDWLRQV WK0D\


 $QQXDO5HSRUW

7KH,QGLDQ/DQJXDJHVXSSRUWIRU0RELOH3KRQHVDV y 7KH6WDQGDUG0DUNIRUFRPSOLDQFHRI(OHFWURQLFV
SHU ,6  3DUW   KDV EHHQ DGGHG WR WKH ,7*RRGVWR,QGLDQ6DIHW\6WDQGDUGVQRWLÀHG
VFKHGXOH RI WKLV 2UGHU YLGH QRWLÀFDWLRQ GDWHG XQGHU&RPSXOVRU\5HJLVWUDWLRQ2UGHUKDVFRPH
7KHVWDQGDUGSURYLGHVIRULQSXWWLQJRI LQWRHIIHFWIURPVW-XO\
WH[W LQ (QJOLVK +LQGL DQG DW OHDVW RQH DGGLWLRQDO
6FKHPH IRU VHWWLQJ XS  XSJUDGDWLRQ RI
,QGLDQ RIÀFLDO ODQJXDJH DORQJ ZLWK IDFLOLW\ RI
(OHFWURQLF SURGXFW WHVWLQJ  4XDOLW\ &RQWURO
UHDGDELOLW\ LQ WKH SKRQHV IRU DOO  ,QGLDQ RIÀFLDO
/DERUDWRULHV 7R VWUHQJWKHQ WKH FRQIRUPLW\
ODQJXDJHVDQGVFULSWVXSSRUWLQJWKHVHODQJXDJHV
DVVHVVPHQW LQIUDVWUXFWXUH 0HLW< QRWLÀHG D
7KH2UGHULVVHWWRFRPHLQWRHIIHFWIURPVW-XO\
´6FKHPHIRUVHWWLQJXSXSJUDGDWLRQRI(OHFWURQLF

SURGXFWWHVWLQJ4XDOLW\&RQWURO/DERUDWRULHVµRQ
$VSHUWKH2UGHUPDQXIDFWXUHVVHHNLQJUHJLVWUDWLRQ WK$XJXVW7KHREMHFWLYHRIWKHVFKHPHLVWR
RIJRRGVKDYHWRJHWWKHLUSURGXFWVWHVWHGDWDQ\RI HQFRXUDJHVHWWLQJXSWHVWLQJIDFLOLWLHVE\&HQWUDO
WKH %,6 UHFRJQLVHG ODEV DQG UHJLVWHU ZLWK %,6 E\ 6WDWH$FDGHPLF,QVWLWXWLRQVZKLFKZLOOEHXVHGIRU
DSSO\LQJEDVHGRQDVHOIGHFODUDWLRQDFFRPSDQLHG HYDOXDWLQJ JRRGV XQGHU WKH ´(OHFWURQLFV DQG
ZLWKDFRS\RIWHVWUHSRUW7HVWLQJLVDOVRSHUIRUPHG ,QIRUPDWLRQ 7HFKQRORJ\ *RRGV &RPSXOVRU\
RQ VHOHFWHG VDPSOHV GXULQJ WKH VXUYHLOODQFH 5HJLVWUDWLRQ2UGHU 7KHVFKHPHIRU*UDQWLQ
VXEVHTXHQWWR5HJLVWUDWLRQ $LGLVRSHQIRUVHWWLQJXSXSJUDGDWLRQRIXSWR
ODEV7KHWRWDO*,$DYDLODEOHXQGHUWKHVFKHPHLV
y 7RWHVWWKHQRWLÀHGSURGXFWV%,6KDVUHFRJQL]HG
C ODFV VXEMHFWWRWKHIROORZLQJ
YDULRXV*RYW3ULYDWHDQG0XOWLQDWLRQDOODEVDOO
RYHU WKH FRXQWU\ 7R GHYHORS FRQIRUPLW\ y )RU ODERUDWRU\ HTXLSPHQW LV C /DFV
DVVHVVPHQW LQIUDVWUXFWXUH LQ WKH FRXQWU\ D PD[LPXP 
´6FKHPH IRU )LQDQFLDO 6XSSRUW IRU 7HVW /DEVµ
y     F R V W  R I  E D V L F  V X S S R U W L Q J  W H V W L Q J
KDVDOVREHHQRSHUDWLRQDOZLWK0HLW<
LQIUDVWUXFWXUH C/DFVPD[LPXP 
y 2YHU  PDQXIDFWXULQJ XQLWV FRYHULQJ
y 3URIHVVLRQDO)HH([SHUWIHHIRUVHWWLQJXSXS
DURXQG  SURGXFW PRGHOV DSSUR[  KDYH
JUDGDWLRQRIODERUDWRULHVDQGFRVWRIREWDLQLQJ
EHHQUHJLVWHUHGGXULQJODVWDURXQG\HDUV
UHFRJQLWLRQ DFFUHGLWDWLRQ  FDOLEUDWLRQ FKDUJHV
RUGHUV KDYH EHHQ LVVXHG XQGHU VXUYHLOODQFH
WKHUHRI FRVW IRU IROORZ XS DFWLRQ DQG LQWHULP
6WDWH *RYHUQPHQWV KDYH EHHQ DVNHG WR
DVVHVVPHQWVE\0HLW<C/DNK PD[LPXP 
QRPLQDWH QRGDO RIÀFHUV WR YLHZ FRPSOLDQFH WR
WKH2UGHULQUHVSHFWLYHVWDWHV :KRLVHOLJLEOH"

y $ SRUWDO WR EULQJ WUDQVSDUHQF\  PDNH y &HQWUDO*RYHUQPHQWDQGLWVRUJDQL]DWLRQV

LQIRUPDWLRQ HDVLO\ DYDLODEOH WR VWDNHKROGHUV LV y 6WDWH*RYHUQPHQWDQGLWVRUJDQL]DWLRQV
IXQFWLRQDOIDFLOLWDWLQJRQOLQHUHJLVWUDWLRQSURFHVV
y 8QLYHUVLWLHV LQFOXGLQJGHHPHGXQLYHUVLWLHV
VXUYHLOODQFH SURFHVV DFFHVV WR GDWDEDVH RI
5HJLVWHUHG 0DQXIDFWXULQJ 8QLWV DQG GHWDLOV RI 7KH IROORZLQJ SURMHFW SURSRVDOV KDYH EHHQ
SURGXFWV FRYHUHG 5HJXODU VWDNHKROGHU DSSURYHGDQGVWDWXVRI*,$LVDVXQGHU
FRQVXOWDWLRQV DQG 7HFKQLFDO FRQVXOWDWLRQV DUH  &(&,,70DGUDV&KHQQDLIRUWRWDO*,$RIC
KHOGIRUWKHSXUSRVH /DNKDQGDPRXQWRICODNKUHOHDVHGDVVW


0LQLVWU\RI(OHFWURQLFV ,QIRUPDWLRQ7HFKQRORJ\ 0HLW<

LQVWDOOPHQW DQG C ODNK UHOHDVHG DV DQG DPRXQW RI C ODNK UHOHDVHG DV VW
QGLQVWDOPHQW LQVWDOPHQW DQG C ODNK UHOHDVHG DV QG
LQVWDOPHQW
 &6,5&HQWUDO,QVWLWXWHRI0LQLQJDQG5HVHDUFK
&,0)5 'KDQEDGIRUWRWDO*,$RIC/DFV *URZWKRI(OHFWURQLFV6HFWRU
DQG DPRXQW RI C ODNK UHOHDVHG DV VW
7KH(OHFWURQLFVVHFWRUKDVVHYHUDOYHUWLFDOVLQWHUPV
LQVWDOPHQW
RILWVPDLQFRQVWLWXHQWV$WSUHVHQWWKHDYDLODELOLW\RI
 036('&%KRSDOIRUWRWDO*,$RICODNK GDWDRQWKHSURGXFWLRQIURPWKLVVHFWRULVOLPLWHGWR
DQG DPRXQW RI C  ODNKV UHOHDVHG DV WKH LQIRUPDWLRQ SURYLGHG E\ YDULRXV LQGXVWU\
VWLQVWDOPHQW $VVRFLDWLRQV %DVHG RQ WKH VDPH WKH SURGXFWLRQ
SURÀOHRIWKH(OHFWURQLFV6HFWRULVDVIROORZV
 157&3DUZDQRRIRUWRWDO*,$RICODNK
3URGXFWLRQLQ(OHFWURQLFV6HFWRU
)LJXUHV 5XSHHV&URUH
61R ,WHP      
 &RQVXPHU(OHFWURQLFV#     
 ,QGXVWULDO(OHFWURQLFV     
 $XWRPRWLYH(OHFWURQLFV   1$ 1$ 1$
 &RPSXWHU+DUGZDUH     
 0RELOHSKRQHV     
 6WUDWHJLF(OHFWURQLFV     
 (OHFWURQLF&RPSRQHQWV     
 /LJKW(PLWWLQJ'LRGHV /('      

1RWHV'DWDDERYHLVDVSURYLGHGE\WKH,QGXVWU\$VVRFLDWLRQV
6RXUFH&($0$ (/&,1$*$571(50$,7,&$
#,QFOXGHV+RPH$SSOLDQFHVYL]5HIULJHUDWRU:DVKLQJ0DFKLQH$LU&RQGLWLRQHU 0LFURZDYH
HVWLPDWHVDVSURYLGHGE\UHVSHFWLYH,QGXVWU\$VVRFLDWLRQV


 $QQXDO5HSRUW

&RQVXPHU(OHFWURQLFV /&'/('79VLQFUHDVHGWRPLOOLRQQRVYDOXHG
$VSHUHVWLPDWHVRI&($0$WKHRYHUDOOSURGXFWLRQ DWCFURUHLQIURPPLOOLRQ1RV
RIWKLVVHJPHQWRIHOHFWURQLFLQGXVWU\ZDVC YDOXHG DW C FURUH LQ  H[KLELWLQJ D
&URUH LQ  FRPSDUHG WR C  FURUH LQ JURZWKUDWHRIDQGLQTXDQWLW\DQGYDOXH
DQGH[KLELWHGDJURZWKRI$QRWDEOH WHUPV UHVSHFWLYHO\ DV SHU HVWLPDWHV IURP WKH
IHDWXUH RI JURZWK LQ &RQVXPHU (OHFWURQLFV LQ WKH LQGXVWU\ DVVRFLDWLRQ &($0$  :KLOH VHSDUDWH
HDUOLHU\HDUVZDVWKHULVHLQLPSRUWVRYHUWKH\HDUVLQ ÀJXUHVIRU*URZWKRI79VDUHQRW\HWDYDLODEOHIRU
UHVSHFW RI FHUWDLQ LWHPV OLNH /&' /(' 79V 7KH KRZHYHU,,3GDWDVKRZVWKDW*URXSLH
JRYHUQPHQWVWRSSHGGXW\IUHHLPSRUWRIVXFKLWHPV ¶5DGLR79DQGFRPPXQLFDWLRQHTXLSPHQW·JUHZDW
DV EDJJDJH DQG LPSRVHG D  GXW\ RQ WKH  SHU FHQW GXULQJ $SU1RY   ZKLFK
VDPHLQ6XEVHTXHQWO\WKHSURGXFWLRQRI VXJJHVWVWKDWWKHSURGXFWLRQRI79VHWVPD\DOVR


0LQLVWU\RI(OHFWURQLFV ,QIRUPDWLRQ7HFKQRORJ\ 0HLW<

KDYH EHHQ KHDOWK\  $V IDU DV SULFHV JR WKH 79 EXVLQHVV RSHUDWLRQV WR PD[LPL]H SURGXFWLRQ DQG
VHJPHQWKDVZLWQHVVHGDGHFOLQLQJWUHQGRYHUWKH UHGXFH RYHUKHDGV 7KH HOHFWURQLFV VHFWRU LV
ODVWIHZ\HDUVLQWHUPVWKHZKROHVDOHSULFHLQGH[ ZLWQHVVLQJ D ZDYH RI QHZ WHFKQRORJLHV LQFOXGLQJ
'XULQJ $SU'HF WKHUHZDVQRVLJQLÀFDQW LQWHUQHW RI WKLQJV ,R7  GHFLVLRQ DQDO\VLV ' FR
FKDQJH LQ ZKROH VDOH SULFH OHYHOV 2Q WKH RWKHU RUGLQDWH V\VWHPV VPDUW ,PDJH SURFHVVLQJ
KDQG WKH FRQVXPHU SULFH OHYHOV DV SHU &3, KDYH Q D Q R W H F K Q R O R J \  Q D Q R V F D O H  D V V H P E O L H V 
EHHQ VKRZLQJ D VWHDG\ XSZDUG WUHQG RYHU WKH  GLVWULEXWHGFRQWUROV\VWHPVDQGURERWLFVWRPDQDJH
\HDUVIRU79VHWVLQWKHUDQJHRISHUFHQWSHU SURFHVVDQGHTXLSPHQWVLQDUDQJHRILQGXVWULHV
DQQXPSHUKDSVGXHWRPDUNHWDQGTXDOLW\UHODWHG 0RVWRIWKHGRPHVWLFGHPDQGLVFDWHUHGWRE\ORFDO
IDFWRUV ,Q FRQWUDVW WR WKH /&' /(' VHJPHQW PDQXIDFWXULQJ ZKHUHDV DERXW  RI WKH
FRQYHQWLRQDO79 ZLWK3LFWXUH7XEH KDVFRQWLQXHG VRSKLVWLFDWHG SURGXFWV DUH LPSRUWHG 3RZHU
WRUHJLVWHUQHJDWLYHJURZWKLQSURGXFWLRQ6LPLODUO\ HOHFWURQLFV LV DQ LPSRUWDQW VHJPHQW RI ,QGXVWULDO
SURGXFWLRQRI'9'SOD\HUVKDVFRQWLQXHGWRGHFOLQH (OHFWURQLFV ZKLFK KDV EHHQ GRPLQDWHG E\
GXH WR JURZWK RI '7+ VHFWRU GLJLWDOL]DWLRQ RI 79 XQRUJDQL]HG UHJLRQDO SOD\HUV +RZHYHU RYHU WKH
QHWZRUNDQGXVHRIVHW7RS%R[HV ODVW IHZ \HDUV ODUJH SOD\HUV LQ WKLV DUHD KDYH
,QGXVWULDO(OHFWURQLFV HPHUJHG ZLWK JOREDO WLHXSV DQG KDYH EURXJKW LQ
,QGXVWULDOHOHFWURQLFVVHFWRULVFORVHO\OLQNHGWRWKH QHZHUWHFKQRORJLHVLQWRWKH,QGLDQPDUNHWV
LQYHVWPHQWLQLQGXVWU\DQGLQIUDVWUXFWXUH 3URFHVV $XWRPRWLYH(OHFWURQLFV
&RQWURO(TXLSPHQWLQGXVWULDOFRQWUROV\VWHPV7HVW :LWKWKHJURZWKLQWKH$XWRPRELOHLQGXVWU\DQGWKH
 PHDVXUHPHQW GHYLFHV 3RZHU (OHFWURQLFV LQFUHDVLQJ GLJLWLVDWLRQ RI DXWRPRELOH FRQWUROV
$XWRPDWHGDXWRPDWLRQHTXLSPHQWVDQG$QDO\WLFDO $XWRPRWLYH (OHFWURQLFV KDV FRPH WR RFFXS\ DQ
,QVWUXPHQWV DJULFXOWXUH HOHFWURQLF LQVWUXPHQWV LPSRUWDQW VHJPHQW RI WKH LQGXVWU\ $XWRPRWLYH
HQYLURQPHQWPRQLWRULQJLQVWUXPHQWVHWFDUHVRPHRI &RPSRQHQW 0DQXIDFWXULQJ $VVRFLDWLRQ $&0$ 
WKHNH\VHJPHQWVRIWKLVLQGXVWU\$VSHUHVWLPDWHVRI KDV SURYLGHG WKH SURMHFWLRQ RI ,QGLDQ $XWRPRWLYH
(/&,1$ WKH RYHUDOO SURGXFWLRQ RI ,QGXVWULDO (OHFWURQLFV6HFWRUZLOOEHDSSUR[LPDWHO\DWC
(OHFWURQLFVZDV‫ڎ‬FURUHLQDQGJUHZWR FURUH WLOO  7KH JOREDO PDUNHW IRU DXWRPRWLYH
DERXWRYHU‫&ڎ‬URUHLQ E\  HOHFWURQLFVLVVHWWRDFFRXQWIRU%LOOLRQ86'LQ
7KH HPHUJLQJ WUHQGV LQ ,QGXVWULDO HOHFWURQLFV DUH IURP%LOOLRQ86'LQ1DPHRIIHZRI
VODWHGWRFKDQJHWKHODQGVFDSHQRWRQO\LQWKHDUHDV WKH NH\ WHFKQRORJLHV WR EH XVHG LQ DXWRPRWLYH
RIHOHFWURQLFVPDQXIDFWXULQJEXWDOVRWKHUHVWRIWKH HOHFWURQLFVDUHDV$QWLORFN%UHDNLQJ6\VWHP $%6 
PDQXIDFWXULQJVHFWRU$UWLÀFLDOLQWHOOLJHQFHDQG' %RG\ &RQWRUO 0RGXOH %&0  7\UH 3UHVVXUH
WHFKQRORJLHV DQG SULQWLQJ LV LQFUHDVLQJO\ KHOSLQJ 0RQLWRULQJ6\VWHP 7306 (OHFWULF3RZHU6WHHULQJ
LQGXVWU\WREHPRUHHIÀFLHQWLPSURYHTXDOLW\FRQWURO (36  HWF ZKLOH SDUNLQJ FDP FUDQN DQG R[\JHQ
DQG UHGXFH PDQXDO VXSHUYLVLRQ FRVWV 7KH VHQVRUVDUHWKHNH\VHQVRUVWREHIRFXVHG
LQWURGXFWLRQ RI QHZHU VRIWZDUH IRU ,QWHJUDWLRQ RI &RPSXWHU+DUGZDUH
SURGXFWLRQ DQG EXVLQHVV RSHUDWLRQV FDQ KHOS
$VSHUHVWLPDWHVRI0$,7WKHRYHUDOOSURGXFWLRQRI
FRPSDQLHV WR LQWHJUDWH WKHLU SURGXFWLRQ DQG
WKLV VHJPHQW RI FRPSXWHU KDUGZDUH ZDV C


 $QQXDO5HSRUW

FURUHLQDQGJUHZWRDERXWRYHUC YDULRXVFRPSRQHQWVRIPRELOHKDQGVHWVOLNHEDWWHU\
&URUHLQ E\ :KLOHQHZPRELOHDQG SDFNV FKDUJHUV  DGDSWHUV DQG ZLUHG KHDGVHWV
KDQGKHOGGHYLFHVDUHEHFRPLQJSRSXODUKRZHYHU KDYHDOVRNLFNVWDUWHGLQ,QGLDGXULQJWKHSDVWDERXW
GXH WR WKH LQFUHDVLQJ QHHG IRU FRPSXWHUV LQ  PRQWKV $V SHU ,QGLDQ &HOOXODU $VVRFLDWLRQ
FRPPHUFLDO LQGXVWULDO DQG SHUVRQDO XVH WKH DSSUR[LPDWHO\  QHZ PDQXIDFWXULQJ SODQWV IRU
GHPDQGIRUFRPSXWHUVLVH[SHFWHGWRJURZLQ,QGLD WKHVHFRPSRQHQWVKDYHDOUHDG\EHHQHVWDEOLVKHG
DWDVWHDG\SDFH GXULQJWKLVSHULRGJHQHUDWLQJGLUHFWHPSOR\PHQWIRU
0RELOH3KRQHV DSSUR[LPDWHO\  SHUVRQV ,QVWLWXWLRQ RI WKH
GLIIHUHQWLDOH[FLVHGXW\VWUXFWXUH RQEDWWHU\SDFNV
,QGLDKDVWKHVHFRQGODUJHVWZLUHOHVVQHWZRUNLQWKH FKDUJHUV  DGDSWHUV DQG ZLUHG KHDGVHWV YLGH
ZRUOG 7KH FRXQWU\ KDV ZLWQHVVHG D ULVH LQ %XGJHW   KDV  OHG WR PDQXIDFWXULQJ
PDQXIDFWXUH RI PRELOH KDQGVHWV GXULQJ WKH SDVW WUDQVIRUPDWLRQ LQ WKH FRPSRQHQWV HFRV\VWHP DV
GHFDGH7RGD\WKHYDOXHVKDUHRIPRELOHKDQGVHW PHQWLRQHGDERYH
LQGXVWU\ RYHU WKH WRWDO (6'0 (OHFWURQLFV 6\VWHP
'HVLJQ DQG 0DQXIDFWXULQJ  VHJPHQW LQ ,QGLD LV 6WUDWHJLF(OHFWURQLFV
HVWLPDWHG DW DERXW  ZKLFK PDNHV PRELOH 7KH VWUDWHJLF HOHFWURQLFV VHJPHQW FRQVLVWV RI
KDQGVHWV·LQGXVWU\DVWKHODUJHVW(6'0YHUWLFDO 0LOLWDU\ &RPPXQLFDWLRQ V\VWHPV 5DGDUV DQG
6HYHUDOLQLWLDWLYHVKDYHEHHQWDNHQGXULQJWKH\HDU 6RQDUV 1HWZRUN &HQWULF V\VWHPV (OHFWURQLF
OHDGLQJ WR VLJQLÀFDQW LQYHVWPHQWV LQ QHZ :DUIDUHV\VWHPV:HDSRQV\VWHPV6DWHOOLWHEDVHG
PDQXIDFWXULQJ RSHUDWLRQV 6RPH RI WKH LPSRUWDQW &RPPXQLFDWLRQ 1DYLJDWLRQ DQG 6XUYHLOODQFH
LQLWLDWLYHV OLNH HQKDQFLQJ RI WKH GLIIHUHQWLDO H[FLVH V\VWHPV1DYLJDWLRQDODLGVXQGHUZDWHUHOHFWURQLF
GXW\EHQHÀWRQPRELOHKDQGVHWVKDYHSOD\HGDNH\ V\VWHPV LQIUDUHG EDVHG GHWHFWLRQ DQG UDQJLQJ
UROHWRWUDQVIRUPWKHPDQXIDFWXULQJVSDFH$VSHU V\VWHP GLVDVWHU PDQDJHPHQW V\VWHP LQWHUQDO
,&$WKHWRWDOSURGXFWLRQRIPRELOHKDQGVHWVLQ,QGLD VHFXULW\ V\VWHP HWF (OHFWURQLFV LV D NH\ DUHD RI
GHIHQFH WHFKQRORJLHV DQG EHFRPH D YLWDO
MXPSHGWR‫ڎ‬FURUHE\YDOXHGXULQJ²
FRPSRQHQW RI QHDUO\ DOO WKH ZHDSRQ V\VWHPV
UHJLVWHULQJDJURZWKRIDERXW,QYROXPHWHUPV
SODWIRUPVDQGHTXLSPHQWGHVLJQHGDQGGHYHORSHG
PDQXIDFWXULQJ RI PRELOH KDQGVHWV UHDFKHG 
IRU'HIHQFHSXUSRVH
PLOOLRQ XQLWV WKHUHE\ UHJLVWHULQJ D JURZWK RI
DSSUR[LPDWHO\$URXQGQHZPDQXIDFWXULQJ 7KH SURGXFWLRQ RI 6WUDWHJLF (OHFWURQLFV ZDV
SODQWVWRPDQXIDFWXUHPRELOHKDQGVHWVKDYHEHHQ C &URUH GXULQJ  DV FRPSDUHG WR
VHWXSGXULQJWKHSDVWDERXWPRQWKVJHQHUDWLQJ C &URUH LQ  ,QGLD·V GHIHQFH
GLUHFW DQG LQGLUHFW HPSOR\PHQW RSSRUWXQLWLHV IRU DHURVSDFH DQG QXFOHDU VHFWRUV DUH SRLVHG IRU
 SHUVRQV 0DQXIDFWXULQJ RI PRELOH VXEVWDQWLDOJURZWKRQWKHEDFNRIHFRQRPLFJURZWK
KDQGVHWVLVIXUWKHUHVWLPDWHGWRJURZE\DERXW DQG WKH QHHG WR PDLQWDLQ QDWLRQDO DQG HQHUJ\
GXULQJWRUHDFKWKHPDQXIDFWXULQJYDOXHRI VHFXULW\7KHUROHRI,7LQGHIHQFHLVH[SDQGLQJZLWK
DERXWCFURUH WKHQHZIRFXVRQF\EHUVHFXULW\

$SDUW IURP PRELOH KDQGVHWV PDQXIDFWXULQJ RI 7KH ,QGLDQ VWUDWHJLF HOHFWURQLF LQGXVWU\ KDV EHHQ
GRPLQDWHG E\ %(/ DQG DOVR KDV GHIHQFH 368·V


0LQLVWU\RI(OHFWURQLFV ,QIRUPDWLRQ7HFKQRORJ\ 0HLW<

VXFK DV +$/ (&,/ DQG %'/ LQWR PDQXIDFWXULQJ VHFWRUWKDWLQFOXGHWKHIROORZLQJ

0RUH UHFHQWO\ D IHZ GRPHVWLF VPDOO DQG PHGLXP y  )', LQ PHGLFDO GHYLFHV XQGHU DXWRPDWLF
VFDOHFRPSDQLHVKDYHHPHUJHGZLWKWKHFDSDELOLW\ URXWH
WR DEVRUE WHFKQRORJ\ DQG PHHW VWULQJHQW
UHTXLUHPHQWV RI VWUDWHJLF HTXLSPHQW 6RPH RI y ,QWURGXFLQJ'UDIW0HGLFDO'HYLFH5XOH
WKHVHFRPSDQLHVSURYLGH(06VHUYLFHVDQGPHHW y ¶0DNH LQ ,QGLD· LQLWLDWLYH IRU SURPRWLQJ
FULWLFDO VXSSO\ UHTXLUHPHQWV RI 01&·V DV ZHOO DV LQGLJHQRXVPDQXIDFWXULQJ
'368·V /DUJHU ,QGLDQ EXVLQHVV JURXSV DUH DOVR y 7KH GHYHORSPHQW RI D TXDOLW\ VWDQGDUGL]DWLRQ
IRUD\LQJLQWR'HIHQFH6HFWRUDQGWKHVHFRPSDQLHV IUDPHZRUNLQ,QGLDWKDWLVEDVHGRQLQWHUQDWLRQDO
KDYHUHVRXUFHVWRWDNHXSELJRIIVHWSURMHFWVDQG VWDQGDUGV DQG FHUWLÀHV WKH TXDOLW\ VDIHW\ DQG
FROODERUDWHZLWKJOREDOOHDGHUV SHUIRUPDQFHRIPHGLFDOGHYLFHVVHYHUDOSROLF\
,QGLDQ GHIHQFH HOHFWURQLFV LQGXVWU\ KDV EHHQ PHDVXUHVWRDGGUHVVWKHFKDOOHQJHVRIPHGLFDO
JURZLQJDWDQDYHUDJHUDWHRIDERXWSHU\HDU GHYLFHVLQGXVWU\
7KHUROHRI,7LQGHIHQFHLVH[SDQGLQJZLWKWKHQHZ 7RSURPRWHVFLHQWLÀFDQGWHFKQRORJLFDOUHVHDUFKLQ
IRFXVRQF\EHUVHFXULW\7KHQH[WGHFDGHLVOLNHO\WR 0HGLFDO (OHFWURQLFV VHFWRUV LQ ,QGLD 0HLW< LQ
VHH DGYDQFHPHQW LQ WHFKQRORJLFDO SURJUDPV DVVRFLDWLRQZLWK%LRWHFKQRORJ\,QGXVWU\5HVHDUFK
LQFOXGLQJ 7DFWLFDO &RPPXQLFDWLRQ 6\VWHP 7&6  $VVLVWDQFH &RXQFLO %,5$&  LV LPSOHPHQWLQJ
1HWZRUN &HQWULF :DUIDUH 1&:  6\VWHPV ,QGXVWU\,QQRYDWLRQ3URJUDPRQ0HGLFDO(OHFWURQLFV
(OHFWURQLF :DUIDUH (:  6\VWHPV )XWXUH ,QIDQWU\ ,,30(  7KH 3URMHFW DLPV WR IXQG D SRUWIROLR RI
6ROGLHUDVD6\VWHP ),16$6 WDQNHOHFWURQLFVDLU ,QGLDQOHGSLORW3URMHFWVWKDWWDUJHWLQQRYDWLRQVLQWKH
GHIHQFHV\VWHPVHWF PXOWLGLVFLSOLQDU\ DUHDV FRPSULVLQJ RI HOHFWURQLFV
0HGLFDO(OHFWURQLFV HQJLQHHULQJPHGLFDOGHYLFHVKHDOWKFDUHVRIWZDUH
0HGLFDO GHYLFHV SOD\ D FUXFLDO UROH IURP WKH DOJRULWKPV DQG LQIRUPDWLRQ WHFKQRORJ\ 0HLW< ZLOO
GLDJQRVLV WR WKH DIWHUFDUH SKDVH RI PHGLFDO SURYLGH D IXQGLQJ VXSSRUW RI C FURUH RYHU D
WUHDWPHQW DQG VLJQLÀFDQWO\ LPSDFW DIIRUGDELOLW\ RI SHULRG RI  \HDUV 8QGHU WKLV SURJUDP VXSSRUW LV
DQGDFFHVVWRKHDOWKFDUH$VSHU'HORLWWHUHSRUWRQ SURYLGHGDW6HHG(DUO\WUDQVLWLRQDQGWUDQVLWLRQVWR
0HGLFDO 'HYLFHV WKH JOREDO PHGLFDO GHYLFHV DQG VFDOH VWDJHV &XUUHQWO\  SURMHFWV DUH EHLQJ
WHFKQRORJ\PDUNHWLVH[SHFWHGWRJURZWR86' IXQGHGXQGHUWKLVSURJUDPDQGPRUHKDYHEHHQ
ELOOLRQE\IURPDQHVWLPDWHG86'ELOOLRQLQ VHOHFWHGIRUIXQGLQJ
GXHWRULVLQJSUHYDOHQFHRIFKURQLFGLVHDVHV (OHFWURQLF&RPSRQHQWV
DJHLQJ SRSXODWLRQ LQFUHDVLQJ LQFRPH DQG $VSHUHVWLPDWHVRI(/&,1$WKHRYHUDOOSURGXFWLRQ
DIIRUGDELOLW\UHVXOWLQJLQKLJKHUGHPDQG XWLOL]DWLRQ RIWKLVVHJPHQWRIHOHFWURQLFLQGXVWU\ZDVC
RIKHDOWKFDUHVHUYLFHV7KH,QGLDQPDUNHWLVDPRQJ FURUHLQDQGJUHZWRDERXWRYHUC
WKHWRSWZHQW\LQWKHZRUOGE\PDUNHWVL]HDQGIRXUWK &URUHLQ E\ 
LQ$VLDDIWHU-DSDQ&KLQDDQG6RXWK.RUHD,QGLDQ
PDUNHWLVLPSRUWGHSHQGHQWZKLFKLVDURXQG ,W LV KRZHYHU QRWHZRUWK\ WKDW D VLJQLÀFDQW VKDUH
7KH*RYHUQPHQWKDVDOVRWDNHQYDULRXVVWHSVLQWKLV a  RI FRPSRQHQW SURGXFWLRQ LV H[SRUWHG
OHDYLQJRQO\DERXWIRUGRPHVWLFFRQVXPSWLRQ


 $QQXDO5HSRUW

ZKLFKLVXVHGLQORFDOHTXLSPHQWSURGXFWLRQ5DSLG
JURZWK LQ GRPHVWLF PDQXIDFWXULQJ RI HOHFWURQLF
FRPSRQHQWV LV YLWDO DQG WKH RQO\ ZD\ LQ ZKLFK
RYHUDOO HOHFWURQLFV PDQXIDFWXULQJ ZLOO JURZ 7KH
HPHUJLQJ KLJK JURZWK DUHDV IRU GRPHVWLF
PDQXIDFWXULQJ DUH /(' /LJKWLQJ $XWRPRWLYH
HOHFWURQLFV HQHUJ\ PHWHUV VRODU HQHUJ\ DQG ,7
SURGXFWVVXFKDV7DEOHWV7KHVHSURGXFWVDUHQRZ
GULYLQJ WKH JURZWK RI HOHFWURQLF FRPSRQHQW
PDQXIDFWXULQJ7KHVHSURGXFWVDUHDQDGGLWLRQWR
H[LVWLQJ VHJPHQWV VXFK DV WHOHFRPPXQLFDWLRQV
FRQVXPHU HOHFWURQLFV DQG LQGXVWULDO HOHFWURQLFV
7KH ,QGLDQ HOHFWURQLF FRPSRQHQW PDUNHW LV DUFKLWHFWXUH DQG HQWHUWDLQPHQW VHFWRUV 7KH
GRPLQDWHGE\HOHFWURPHFKDQLFDOFRPSRQHQWV OLNH RSSRUWXQLW\ IRU /('V LQ WKH JHQHUDO VSDFH
SULQWHGFLUFXLWERDUGVFRQQHFWRUVHWF ZLWK LOOXPLQDWLRQVHJPHQWRIUHVLGHQWLDODQGFRPPHUFLDO
V K D U H   S D V V L Y H  F R P S R Q H Q W V  O L N H  Z R X Q G EXLOGLQJV KDV DOVR HPHUJHG DQG H[SDQGLQJ YHU\
FRPSRQHQWVFDSDFLWRUVUHVLVWRUVHWF KDYHDERXW UDSLGO\
 VKDUH )XUWKHU $FWLYH FRPSRQHQWV OLNH ,&V ,PSRUWV
'LRGHV 7UDQVLVWRUV 3LFWXUH 7XEHV HWF  DQG WKH 7RWDOLPSRUWRI(OHFWURQLFVLQWR,QGLDLQZDV
$VVRFLDWH&RPSRQHQWV OLNHRSWLFDOGLVFPDJQHWV
86PLOOLRQ7KHRYHUDOOLPSRUWRIHOHFWURQLFV
5)7XQHUVHWF FRQVWLWXWHGDQGVKDUHRI
H[FHHGV GRPHVWLF SURGXFWLRQ WKXV PDNLQJ ,QGLD
WKHFRPSRQHQWVUHVSHFWLYHO\
GHSHQGHQW RQ LPSRUWV ,PSRUW RI HOHFWURQLFV
/LJKW(PLWWLQJ'LRGHV /('V  DFFRXQWVIRURYHURIWRWDOLPSRUWVE\,QGLD
2QHRIWKHGULYLQJIRUFHVIRUJURZWKLQHOHFWURQLFV ,PSRUWRIHOHFWURQLFVVKRZHGVWURQJJURZWKRI
PDQXIDFWXULQJ LV WKH ,QGLDQ /LJKWLQJ PDUNHW 7KH SHU FHQW LQ  GULYHQ ODUJHO\ E\ JURZWK LQ
GHPDQGIRUHQHUJ\HIÀFLHQF\KDVEURXJKWIRUZDUG (OHFWURQLF &RPSRQHQWV   IROORZHG E\
DQ LPPHGLDWH QHHG IRU PRUH HQHUJ\ HIÀFLHQW (OHFWURQLFLQVWUXPHQWV  WHOHFRPHTXLSPHQW
SURGXFWV DQG DOVR KDV SXVKHG PDUNHW WRZDUGV   DQG  FRPSXWHU KDUGZDUH  SHULSKHUDOV
PRUH HIÀFLHQW SURGXFWV VXFK DV /LJKW (PLWWLQJ  ZLWKFRQVXPHUHOHFWURQLFVJURZWKUHPDLQLQJ
'LRGHV /('V  /('V DUH WKH FKRLFH IRU HQHUJ\ VWDJQDQW  
HIÀFLHQW OLJKWLQJ DQG DV SHU (/&20$ /('  ,PSRUWV RI (OHFWURQLFV GXULQJ 
PDQXIDFWXULQJLQ,QGLDKDVJURZQE\DERXWWR $ S U L O  ' H F  G H F O L Q H G  D V  F R P S D U H G  W K H
UHDFKC&URUHLQDQGLVHVWLPDWHGWR FRUUHVSRQGLQJ SHULRG RI WKH SUHYLRXV \HDU ZLWK D
UHDFKDSURGXFWLRQYDOXHRIDERXWCFURUHLQ JURZWK UDWH RI    SHU FHQW 7KLV PDUNV D
 UHYHUVDORIWKHVWURQJJURZWKLQLPSRUWVZLWQHVVHGLQ
7KHRSSRUWXQLWLHVIRU/LJKW(PLWWLQJ'LRGHV /('V   DQG  ([FHSW IRU HOHFWURQLF
LQ ,QGLDQ OLJKWLQJ PDUNHWV KDYH LQFUHDVHG LQ FRPSRQHQWV ZKRVH LPSRUWV JUHZ E\ RYHU  SHU
DXWRPRELOHVFRPPXQLFDWLRQVVLJQDJHVLJQDOLQJ


0LQLVWU\RI(OHFWURQLFV ,QIRUPDWLRQ7HFKQRORJ\ 0HLW<

FHQW GXULQJ WKLV SHULRG DOO RWKHU SURGXFW JURXSV HOHFWURQLF JRRGV IROORZLQJ VWHSV ZHUH WDNHQ WR
ZLWQHVVHG QHJDWLYH JURZWK &RPSXWHU KDUGZDUH UDWLRQDOL]H WKH WDULII VWUXFWXUH LQ WKH 8QLRQ %XGJHW
LPSRUWVGHFOLQHGE\  7HOHFRPLQVWUXPHQWV 
E\     FRQVXPHU HOHFWURQLFV E\   SHU L 'LIIHUHQWLDOH[FLVHGXW\GLVSHQVDWLRQPDGH
FHQW DQGHOHFWURQLFLQVWUXPHQWVDW  GXULQJ DYDLODEOHWRPRELOHKDQGVHWVWDEOHWFRPSXWHUV
$SU'HFRI ZDV H[WHQGHG WR WKH IROORZLQJ HOHFWURQLF
([SRUW   HTXLSPHQW+RZHYHUWKHVHDUHWREHFKDUJHG
H[FLVH GXW\ RI  ZLWKRXW LQSXW WD[ FUHGLW  RU
7KHWRWDOH[SRUWRIHOHFWURQLFVIURP,QGLDLQ
      Z L W K  L Q S X W  W D [  F U H G L W   Z K L O H
ZDVRIWKHRUGHUWR86 PLOOLRQ(OHFWURQLFV
&RXQWHUYDLOLQJ'XW\ &9' RQLPSRUWVLVWREH
H[SRUWV DFFRXQW IRU D VPDOO SURSRUWLRQ DERXW
 7R HQDEOH GRPHVWLF PDQXIDFWXUHUV WR
  RI WRWDO H[SRUWV IURP ,QGLD  (OHFWURQLF
FOHDUWKHVHHTXLSPHQWDWH[FLVHGXW\RIDOO
H[SRUWVVKRZHGDGHFOLQHLQZLWKDJURZWK
LQSXWV H[FHSW SRSXODWHG 3&%V  RI IROORZLQJ
UDWH RI    SHU FHQW ZLWK WKH VKDUSHVW GHFOLQH
HTXLSPHQW KDYH EHHQ H[HPSWHG IURP %DVLF
EHLQJ LQ WHOHFRP LQVWUXPHQWV  ,Q WHUPV RI
&XVWRPV 'XW\ %&'  ([FLVH 'XW\ &9' DQG
FRPSRVLWLRQ H[SRUW RI HOHFWURQLFV LQ 
6SHFLDO$GGLWLRQDO'XW\RI&XVWRPV 6$' 
FRPSULVHGRIHOHFWURQLFVLQVWUXPHQWV  DQG
HOHFWURQLF FRPSRQHQWV    ZLWK WKH EDODQFH L  5RXWHUV
DFFRXQWHG IRU E\ 7HOHFRP LQVWUXPHQWV    LL  %URDGEDQGPRGHPV
FRQVXPHU HOHFWURQLFV    DQG FRPSXWHU
LLL 6HWWRSER[HVIRUJDLQLQJDFFHVVWRLQWHUQHW
KDUGZDUH  
LY 6HWWRSER[HVIRU79
([SRUWV $SULO'HFHPEHU KDYH
Y  'LJLWDO9LGHR5HFRUGHU '95 1HWZRUN9LGHR
VKRZQ D UHYLYDO DQG JUHZ DW  SHU FHQW RQ WKH
5HFRUGHU 195
RYHUDOO WKHUHE\ UHYHUVLQJ WKH GHFOLQLQJ WUHQG
ZLWQHVVHG LQ  ZKHQ HOHFWURQLFV H[SRUWV YL &&79&DPHUD,3&DPHUD
VKUDQN E\    SHU FHQW $ QRWHZRUWK\ YLL /LWKLXPLRQ EDWWHULHV RWKHU WKDQ IRU PRELOH
GHYHORSPHQWGXULQJWKH\HDU $SU'HF ZDV KDQGVHWVLQFOFHOOXODUSKRQHV
WKH UREXVW LQFUHDVH LQ JURZWK LQ WHOHFRP
LL 0RELOH+DQGVHWV7RSURPRWHGRPHVWLFYDOXH
LQVWUXPHQWV E\  SHU FHQW  ([SRUW RI HOHFWURQLF
DGGLWLRQLQPRELOHKDQGVHWV&9'([FLVHGXW\
LQVWUXPHQWV ZDV DERXW  SHU FHQW +RZHYHU
H[HPSWLRQ ZDV ZLWKGUDZQ RQ FKDUJHU RU
QHJDWLYHJURZWKZDVZLWQHVVHGLQUHVSHFWRIH[SRUW
DGDSWHU EDWWHU\ DQG ZLUHG KHDGVHWV IRU
RI FRPSXWHU KDUGZDUH    FRQVXPHU PDQXIDFWXUH RI PRELOH KDQGVHWV ZKLOH H[FLVH
HOHFWURQLFV   DQG HOHFWURQLF FRPSRQHQWV GXW\ VWUXFWXUH RQ WKHVH LWHPV IRU VXSSO\ WR
  PRELOH KDQGVHW PDQXIDFWXUHUV KDV EHHQ
5DWLRQDOLVDWLRQRI7DULIIGXULQJ FKDQJHG7KHVHZLOOEHFKDUJHGH[FLVHGXW\RI
 ZLWKRXWLQSXWWD[FUHGLW RU ZLWKLQSXW
5DWLRQDOL]DWLRQ RI WDULII VWUXFWXUH LQ HOHFWURQLFV
WD[ FUHGLW  ZKLOH &9' RQ LPSRUWV ZDV SXW DW
KDUGZDUH PDQXIDFWXULQJ VHFWRU LV DQ RQJRLQJ
 7R HQDEOH GRPHVWLF PDQXIDFWXUHUV WR
H[HUFLVH7RSURPRWHLQGLJHQRXVPDQXIDFWXULQJRI


 $QQXDO5HSRUW

FOHDUWKHVHJRRGVDWH[FLVHGXW\RILQSXWV %/'& PRWRUVKDVEHHQUHGXFHGIURP

SDUWV DQG VXESDUWV IRU WKH PDQXIDFWXUH RI WR
WKHVH JRRGV KDYH DOVR EHHQ H[HPSWHG IURP L[ 6LPSOLÀFDWLRQ RI &XVWRPV 5XOHV &XVWRPV
%&'&9'([FLVHGXW\DQG6$' ,PSRUWRI*RRGVDW&RQFHVVLRQDO5DWHRI'XW\
LLL 6HPLFRQGXFWRU ZDIHU IDEULFDWLRQ /&' IRU 0DQXIDFWXUH RI ([FLVDEOH *RRGV  5XOHV
IDEULFDWLRQDQG$703XQLWV%&'DQG6$' ZDVVXEVWLWXWHGZLWK&XVWRPV ,PSRUWRI
KDYH EHHQ H[HPSWHG RQ PDFKLQHU\ HOHFWULFDO *RRGV DW &RQFHVVLRQDO 5DWH RI 'XW\ IRU
HTXLSPHQW RWKHU LQVWUXPHQWV DQG WKHLU SDUWV 0DQXIDFWXUHRI([FLVDEOH*RRGV 5XOHV
H[FHSW SRSXODWHG 3ULQWHG &LUFXLW %RDUGV  IRU WR VLPSOLI\ UXOHV LQFOXGLQJ DOORZLQJ GXW\
XVH LQ VHPLFRQGXFWRU ZDIHU IDEULFDWLRQ/&' H[HPSWLRQVWRLPSRUWHUPDQXIDFWXUHUEDVHGRQ
IDEULFDWLRQ DQG $VVHPEO\ 7HVW 0DUNLQJ DQG V H O I G H F O D U D W L R Q  L Q V W H D G  R I  R E W D L Q L Q J
3DFNDJLQJ RI VHPLFRQGXFWRU FKLSV $703  SHUPLVVLRQVIURPWKH&HQWUDO([FLVHDXWKRULWLHV
XQLWV 1HHGIRUDGGLWLRQDOUHJLVWUDWLRQKDVDOVREHHQ
LY&DSDFLWRU JUDGH SRO\SURS\OHQH JUDQXOHV GRQHDZD\ZLWK
%&' RQ FDSDFLWRU JUDGH SRO\SURS\OHQH 7RSURPRWHLQGLJHQRXVPDQXIDFWXULQJRIHOHFWURQLF
JUDQXOHV RU UHVLQV IRU WKH PDQXIDFWXUH RI JRRGV IROORZLQJ VWHSV KDYH EHHQ WDNHQ WR
FDSDFLWRU JUDGH SODVWLF ÀOP KDV EHHQ UDWLRQDOL]H WKH WDULII VWUXFWXUH LQ WKH 8QLRQ %XGJHW
H[HPSWHG 
Y H5HDGHUV%&'DWWKHUDWHRIKDVEHHQ ‡ 3URPRWLRQ RI 326 DQG RWKHU GLJLWDO
LPSRVHGRQH5HDGHUV%&'RQUDZPDWHULDOV SD\PHQWGHYLFHV%&'([FLVH&9'DQG6$'
RU SDUWV IRU XVH LQ PDQXIDFWXUH RI H5HDGHUV KDYH EHHQ H[HPSWHG RQ L  PLQLDWXULVHG 326
KDVEHHQUHGXFHGWR FDUG UHDGHU IRU P326 LL  PLFUR $70
YL 0DJQHWURQIRUPLFURZDYHRYHQV%&'KDV VWDQGDUGV YHUVLRQ  LLL  )LQJHU 3ULQW
EHHQH[HPSWHGRQPDJQHWURQRIXSWR.: 5HDGHUV6FDQQHUV DQG LY  ,ULV 6FDQQHUV $OO
XVHG IRU WKH PDQXIDFWXUH RI GRPHVWLF GXWLHV %&'&9'6$' RQSDUWVDQGLQSXWVRI
PLFURZDYHRYHQV DIRUHVDLG GHYLFHVKDYHDOVREHHQUHGXFHGWR
]HUR
YLL6 X E  P L Q L D W X U H  I X V H V   P L F U R  I X V H V 
UHVHWWDEOH IXVHV DQG WKHUPDO IXVHV %&' ‡ 3URPRWLRQRI/('OLJKWVPDQXIDFWXULQJ7KH
KDVEHHQH[HPSWHGRQVSHFLÀHGUDZPDWHULDOV %&'RQDOOSDUWVIRUXVHLQWKHPDQXIDFWXUHRI
DQG FDSLWDO JRRGV IRU XVH LQ PDQXIDFWXUH RI /('OLJKWVRUÀ[WXUHVLQFOXGLQJ/('ODPSVKDV
VXEPLQLDWXUH IXVHV PLFUR IXVHV UHVHWWDEOH EHHQ UHGXFHG IURP  WR  DQG &9' KDV
IXVHVDQGWKHUPDOIXVHV EHHQ UHGXFHG IURP  WR  VXEMHFW WR
DFWXDOXVHUFRQGLWLRQ
YLLL%/'&PRWRUV%&'RQ1HRG\PLXP0DJQHW
EHIRUH0DJQHWL]DWLRQ >@DQG0DJQHW ‡ 3URPRWLRQRIVRODUFHOOVDQGPRGXOHV%&'
5HVLQ 6WURQWLXP )HUULWH FRPSRXQGEHIRUH RQ VRODU WHPSHUHG JODVV IRU XVH LQ VRODU
IRUPHGEHIRUHPDJQHWL]DWLRQ >@IRU SKRWRYROWDLF FHOOVPRGXOHV VRODU SRZHU
XVHLQPDQXIDFWXUHRI%UXVKOHVV'LUHFW&XUUHQW JHQHUDWLQJ HTXLSPHQW RU V\VWHPV ÁDW SODWH


0LQLVWU\RI(OHFWURQLFV ,QIRUPDWLRQ7HFKQRORJ\ 0HLW<

VRODUFROOHFWRUVRODUSKRWRYROWDLFPRGXOHDQG FRQIHUHQFHVVHPLQDUVDQGZRUNVKRS
SDQHOIRUZDWHUSXPSLQJDQGRWKHUDSSOLFDWLRQV  6SHFLÀF 9HUWLFDOV UHODWHG 1DWLRQDO
KDV EHHQ UHGXFHG IURP  WR 1,/ &9' RQ :RUNVKRSV
SDUWVUDZPDWHULDOVIRUXVHLQWKHPDQXIDFWXUH
RIVRODUWHPSHUHGJODVVIRUDIRUHVDLGXVHVKDV 0HLW<KDVVXSSRUWHGHLJKW:RUNVKRSVWRWDUJHWWKH
DOVREHHQUHGXFHGIURPWR QHHGV RI VSHFLÀF YHUWLFDOV LQ WKH HOHFWURQLFV
KDUGZDUHPDQXIDFWXULQJVSDFHFRQGXFWHGWKURXJK
'HYHORSPHQWRI,QGLDQ&RQGLWLRQDO$FFHVV (OHFWURQLFV,QGXVWU\$VVRFLDWLRQVFRYHULQJVHFWRUV
6\VWHP L&$6 VXFK DV &RPSXWHUV DQG SHULSKHUDOV 0RELOH
0HLW< WKURXJK D QRYHO 333 PRGHO KDG IXQGHG D KDQGVHWV SDUWV DQG DFFHVVRULHV &RORXU 79 6HWV
X Q L T X H  S U R M H F W  I R U  W K H  G H Y H O R S P H Q W  D Q G DQG6HW7RS%R[HV7HOHFRP(TXLSPHQW,QGXVWULDO
LPSOHPHQWDWLRQ RI ,QGLDQ &RQGLWLRQDO $FFHVV (OHFWURQLFV 6HPLFRQGXFWRUV 0HPRULHV DQG
6\VWHP L&$6 IRU6HW7RS%R[HV 67%V 0V%\ $703 (OHFWURQLF &RPSRQHQWV /LTXLG &U\VWDO
'HVLJQ ,QGLD 3YW /WG %DQJDORUH LQ DVVRFLDWLRQ 'LVSOD\V /&'V /LJKW(PLWWLQJ'LRGHV /('V /('
ZLWK&'$&KDVVXFFHVVIXOO\GHYHORSHGWKHL&$6 3DFNDJLQJ DQG /(' /LJKWV GHIHQFH HOHFWURQLFV
7KHGHYHORSPHQWRIL&$6KDVHQDEOHG,QGLDWRHQWHU 6ROLG6WDWH0HPRU\3URGXFWV0HPRU\&DUGV86%
DQLFKHPDUNHWKLWKHUWRGRPLQDWHGE\IHZELJJOREDO 'ULYHVDQG(OHFWURQLFV0DQXIDFWXULQJ6HUYLFHV
FRPSDQLHV 6WDWH/HYHO:RUNVKRSV
0RUHWKDQ6HW7RS%R[HVZLWKL&$6KDYH 7KHHIIRUWWRPDNH,QGLDDVDJOREDOGHVWLQDWLRQIRU
DOUHDG\EHHQGHSOR\HGDFURVVWKHFRXQWU\LQWKHODVW (6'0FDQRQO\EHSRVVLEOHZLWKWKHSURDFWLYHUROH
RQH \HDU 0RUH WKDQ  0XOWL6\VWHP 2SHUDWRUV RI6WDWH*RYHUQPHQWV7KH\KDYHDFUXFLDOUROHLQ
KDYHLQVWDOOHGL&$6HQDEOHGKHDGHQGV7KHL&$6 DWWUDFWLQJ WKH (6'0 LQGXVWU\ WR WKHLU UHVSHFWLYH
LVEHQHÀFLDOWRGRPHVWLF6HW7RS%R[PDQXIDFWXUHUV 6WDWHV'HYHORSPHQWRIZRUOGFODVVLQIUDVWUXFWXUH
DQG2SHUDWRUVEHFDXVHLWLVDYDLODEOHWRWKHPDWD VHFWRU VSHFLÀF LQFHQWLYHV VWUHDPOLQLQJ RI
SULFHRI86'OLFHQVHIRUDSHULRGRIWKUHH\HDUV SURFHGXUHV DQG DSSURSULDWH ODERXU UHIRUPV
DVDJDLQVWPDUNHWSULFHRI86'OLFHQVHIRURWKHU DPRQJRWKHUVDUHWKHVWHSVQHHGHGLQWKLVGLUHFWLRQ
FRPSHWLQJSURGXFWVWKXVVDYLQJVLJQLÀFDQWIRUHLJQ 7KHUHIRUHLQRUGHUWRWDNHWKH6WDWHVRQERDUGLQWKLV
H[FKDQJH$VDUHVXOWWKHSULFHVRIFRPSHWLQJ&$6 HQGHDYRXU  6WDWHOHYHO :RUNVKRSV KDYH EHHQ
SURGXFWV KDYH DOVR VKRZQ D GHFOLQLQJ WUHQG 7KH RUJDQLVHGWLOO'HFHPEHU
L&$6 HQDEOHG 67%V KDYH EHHQ GHSOR\HG HYHQ LQ
UHPRWHUHJLRQVRIWKHFRXQWU\ ,QGXVWU\&RQIHUHQFHV

 0DUNHWLQJ DQG DWWUDFWLQJ LQYHVWPHQW LQ 'HSDUWPHQW KDV DOVR VXSSRUWHG  ,QGXVWU\
HOHFWURQLFVVHFWRU &RQIHUHQFHV E\ SURYLGLQJ *UDQWLQDLG WR
(OHFWURQLFV ,QGXVWU\ $VVRFLDWLRQV ,QGXVWU\
8QGHU WKH DHJLV RI &RPPXQLFDWLRQ  %UDQG &KDPEHUV2UJDQLVDWLRQV
%XLOGLQJ &DPSDLJQ 0HLW< KDV HQJDJHG ZLWK WKH
VWDNHKROGHUV RI WKH (OHFWURQLFV 6\VWHP 'HVLJQ  2XWUHDFKWR$FDGHPLDDQG6WXGHQWV
0DQXIDFWXULQJ (6'0  VHFWRU WKURXJK YDULRXV 7KH RXWUHDFK SURJUDPPH LV PHDQW WR PDNH
OHYHOV RI %HORZ 7KH /HYHO %7/  HYHQWV VXFK DV DFDGHPLD VWXGHQWV DQG FLWL]HQV DZDUH RI WKLV


 $QQXDO5HSRUW

VHFWRUDQGLWVLPSRUWDQFHIRUHFRQRPLFJURZWKRI   3URPRWLRQV WR DWWUDFW LQYHVWPHQW LQ

WKHFRXQWU\DQGWRDWWUDFWJUHDWHUWDOHQWWRWKHVHFWRU (6'0VHFWRU
IRU PHHWLQJ LWV LQWHOOHFWXDO DQG KXPDQ UHVRXUFH  $ *RYHUQPHQW ,QGXVWU\ ,QGLDQ GHOHJDWLRQ OHG E\
UHTXLUHPHQWV 7KLV SURJUDPPH LV DYDLODEOH IRU 6HFUHWDU\0HLW<YLVLWHG&H%,7*HUPDQ\GXULQJWKH
DFDGHPLD *RYHUQPHQW ,QVWLWXWLRQV 1RQ*RYW SHULRG0DUFKWRDWWUDFWLQYHVWPHQWLQ
,QVWLWXWLRQV3RO\WHFKQLFVLQWKH1RUWK(DVW6WDWHV (6'0 VHFWRU 7KH ,QGLDQ GHOHJDWLRQ KDG VHYHUDO
8*&$,&7(UHFRJQL]HG8QLYHUVLWLHV&ROOHJHVSHU R Q H  W R  R Q H  P H H W L Q J V  Z L W K  & ( 2 V  6 H Q L R U
6WDWHSHU\HDU  UHSUHVHQWDWLYHV RI WKH SURVSHFWLYH LQYHVWRUV LQ
 1DWLRQDO&RQIHUHQFH ,QGLD 0HLW< DOVR GLVFXVVHG FROODERUDWLRQ LQ
7KH0LQLVWU\KDVRUJDQLVHG1DWLRQDOOHYHO´0HGLFDO UHVHDUFK LQQRYDWLRQZLWKWHFKQRORJ\H[SHUWVIURP
(OHFWURQLFV ,QQRYDWLRQ 6XPPLW µ WR SURPRWH )UDXQKRIHU ,QVWLWXWH IRU WKH SRVVLEOH FROODERUDWLRQ
GHYHORSPHQW DQG PDQXIDFWXULQJ RI 0HGLFDO EHWZHHQ 0HLW<·V 5 ' ODEV DQG )UDXQKRIHU LQ
(OHFWURQLFV ZLWKLQ WKH FRXQWU\ DW ,,7 %RPED\ LQ *HUPDQ\IRUWUDQVIRUPLQJWKHVXFFHVVIXOPRGHORI
0XPEDLRQ6HSWHPEHU7RXQGHUVWDQG UHVHDUFKRI)UDXQKRIHU,QVWLWXWHV'XULQJWKLVHYHQW
WKHFUXFLDOUROHRI(OHFWURQLFVLQ0HGLFDODSSOLFDWLRQ 0HLW<DOVRFRQGXFWHGWKUHH6HPLQDUVIRU*HUPDQ
0HGLFDO(OHFWURQLFV,QQRYDWLRQ6XPPLWLVRQHRIWKH FRPSDQLHV ´0DNH,Q,QGLD &(2V 3HUVSHFWLYHµ
NH\ LQLWLDWLYHV LQ WKH VHULHV RI SURDFWLYH PHDVXUHV ´,QYHVWPHQW RSSRUWXQLWLHV LQ ,QGLDQ VWDWHVµ DQG
WDNHQ E\ 0HLW< 7KH HPSKDVLV RI WKH VXPPLW ZDV ´6WDUWXS,QGLD$GYDQFLQJ,QQRYDWLRQ+RZWRXVKHU
WRZDUGV LQQRYDWLRQ LQ WKH ÀHOG RI 0HGLFDO LQDQHUDRIWHFKVWDUWXSLQFRXQWU\µ
(OHFWURQLFV +HDOWK ,QIRUPDWLFV  7HOHPHGLFLQH $ *RYHUQPHQW,QGXVWU\ GHOHJDWLRQ YLVLWHG 5XVVLD
DSSOLFDWLRQV7KHHYHQWZDVSRZHUHGE\+DQQRYHU GXULQJ   -XO\  WR DWWUDFW LQYHVWPHQW LQ
0LODQR )DLUV ,QGLD &H%,7  LQ DVVRFLDWLRQ ZLWK HOHFWURQLFV VHFWRU DQG SDUWLFLSDWH LQ ,1123520
6RIWZDUH 7HFKQRORJ\ 3DUNV RI ,QGLD 673,  DQG  0HLW< WHDP FRQGXFWHG YDULRXV RQHWR RQH
6$0((5 $SDUW IURP IRFXVVHG GLVFXVVLRQV PHHWLQJVZLWK&(2V6HQLRUUHSUHVHQWDWLYHVRIWKH
VHOHFWHGVHVVLRQVDOVRSURYLGHGDQRSSRUWXQLW\IRU SURVSHFWLYH LQYHVWRUV IURP  OHDGLQJ (6'0
WKH6WDUWXSVWRSUHVHQWWKHLULQQRYDWLRQVDQGJDWKHU FRPSDQLHV RI 5XVVLD LQFOXGLQJ 0V $UJRV7UDGH
IHHGEDFN DQG VXJJHVWLRQV IURP ,QFXEDWRUV DQG */21$668QLRQ$QJVWUHP%DLNDO(OHFWURQLFV6W
LQGXVWU\ PHPEHUV 7KH H[KLELWLRQ VKRZFDVH ZDV 3HWHUVEXUJ6WDWH8QLYHUVLW\,QVWLWXWHRI,QQRYDWLRQV
DQFKRUHGDURXQGWKHFHQWUDOSDYLOLRQRI,QQRYDWLRQ DW ,702 8QLYHUVLW\ DQG 73ODWIRUPV DW 0RVFRZ
GLVSOD\E\0HLW<ZKLFKKDGWKHODWHVWSURGXFWVDQG 8QLYHUVLW\IRUSRVVLEOHFROODERUDWLRQ
VHUYLFHV RI 0HGLFDO (OHFWURQLFV E\ DVVRFLDWHG $ *RYHUQPHQW ,QGXVWU\ ,QGLD GHOHJDWLRQ OHG E\
RUJDQLVDWLRQV $GGLWLRQDO SDUWLFLSDWLRQ RI LQGXVWU\ 6HFUHWDU\ 0HLW< YLVLWHG 7DLZDQ GXULQJ WKH SHULRG
PHPEHUVKHOSHGFUHDWHDVSHFLDO,QQRYDWLRQ([KLELW 0D\  -XQH  WR DWWUDFW LQYHVWPHQW LQ (6'0
]RQH7KH0HGLFDO(OHFWURQLFV²6WDUW8S]RQHZDV VHFWRU 7KH ,QGLDQ GHOHJDWLRQ KDG VHYHUDO RQHWR
VHW XS ZLWK IHZ VWDUWXS FRPSDQLHV KLJKOLJKWLQJ RQH PHHWLQJV ZLWK OHDGLQJ (6'0 FRPSDQLHV RI
XQLTXHSURGXFWVDQGVHUYLFHV 7DLZDQ LQFOXGLQJ )R[FRQQ 7HFKQRORJ\ *URXS


0LQLVWU\RI(OHFWURQLFV ,QIRUPDWLRQ7HFKQRORJ\ 0HLW<

&20387(;'/LQN&RUSRUDWLRQ'HOWD(OHFWURQLFV -',  $VDKL *ODVV &RUSRUDWLRQ $*&  +LWDFKL +L

7(&2 *URXS 7DLSHL &RPSXWHU $VVRFLDWLRQ $8 7HFKQRORJLHV&RUSRUDWLRQHWF
2SWURQLFV 0HGLD7HN 3HJDWURQ &RUSRUDWLRQ 0HLW< SDUWLFLSDWHG LQ 6(0,&21 -DSDQ DQ HYHQW
:LVWURQ&RUSRUDWLRQHWF KRVWHGE\6HPLFRQGXFWRU(TXLSPHQW$VVRFLDWLRQ
$ *RYHUQPHQW,QGXVWU\ GHOHJDWLRQ YLVLWHG 7DLZDQ RI -DSDQ 6($-  6(0,&21 'HFHPEHU 
GXULQJ 2FWREHU  WR DWWUDFW LQYHVWPHQW LQ  LVRQHRIWKHODUJHVWHYHQWVIRUPLFURHOHFWURQLFV
HOHFWURQLFV VHFWRU DQG SDUWLFLSDWH LQ 7$,7521,&6 LQ-DSDQZLWKPRUHWKDQH[KLELWRUVDQG
7KHGHOHJDWLRQDOVRLQFOXGHGUHSUHVHQWDWLYHV DWWHQGHHV LWV H[SRVLWLRQ LQ -DSDQ FRYHUV HQWLUH
IURP 6WDWH *RYHUQPHQWV RI .DUQDWDND 2GLVKD VHPLFRQGXFWRUVXSSO\FKDLQIURQWHQGDQGEDFN
&KKDWWLVJDUK-KDUNKDQG*XMDUDWDQG0DKDUDVKWUD HQG(YHQWZDVFRORFDWHGZLWKWKHZRUOGRI,R7D
7KHUH ZDV D ODUJH SDUWLFLSDWLRQ IURP LQGXVWU\ ´VKRZZLWKLQDVKRZµ GHGLFDWHG WR ,QWHUQHW RI
7KH GHOHJDWLRQ ZDV ZHOO UHSUHVHQWHG E\ WKH 7KLQJVDSSOLFDWLRQVWKDWDUHGULYLQJWKHQH[WZDYHRI
L Q G X V W U \  D F U R V V  Y D U L R X V  V X E  V H F W R U V  O L N H PLFURHOHFWURQLFVLQQRYDWLRQ,QGLD VSHUVSHFWLYHRQ
FRQVXPHU HOHFWURQLFV DXWRPRELOH HOHFWURQLFV SURPRWLRQ DQG JURZWK VWUDWHJLHV IRU WKH
VHPLFRQGXFWRUV FRPSRQHQWV HWF $OO WKH PDMRU VHPLFRQGXFWRULQGXVWU\ZHUHSUHVHQWHGGXULQJWKH
LQGXVWU\DVVRFLDWLRQVQDPHO\,(6$(/&,1$,&$ HYHQW
&0$,SDUWLFLSDWHGLQWKHVKRZ 'XULQJWKHWKHGLWLRQRI,QGLD,QWHUQDWLRQDO7UDGH
$*RYHUQPHQW,QGXVWU\'HOHJDWLRQYLVLWHG-DSDQIRU )DLU ,,7) DVHPLQDURQ´'LJLWDO,QGLD,QYHVWPHQW
SDUWLFLSDWLQJ LQ WKH WK ,QGLD-DSDQ -RLQW :RUNLQJ DQG%XVLQHVVRSSRUWXQLW\µKDVEHHQRUJDQL]HGRQ
*URXS PHHWLQJ ,QGXVWU\ WR ,QGXVWU\ 6HVVLRQ 1RYHPEHUWKDW3UDJDWL0DLGDQ1HZ'HOKL
*RYHUQPHQWWR,QGXVWU\6HVVLRQDQG*RYHUQPHQW 7R SURPRWH LQYHVWPHQW IRU PRELOH PDQXIDFWXULQJ
WR*RYHUQPHQW6HVVLRQZLWKSDUWLFLSDQWVIURP,QGLD SUDFWLFDO KDQGVRQ SURJUDP IRU PRELOH KDQGVHW
-DSDQZHUHVXFFHVVIXOO\FRQGXFWHGDW0LQLVWU\RI GHVLJQHQJLQHHUVKDYHEHHQODXQFKHGE\+RQ·EOH
(FRQRP\ 7UDGH DQG ,QGXVWU\ 0(7,  DW 7RN\R 0LQLVWHURI(OHFWURQLFVDQG,QIRUPDWLRQ7HFKQRORJ\
-DSDQ 0HLW<  7KH SURJUDP DLPV WR LPSURYH WKHLU VNLOOV
%HVLGHV SDUWLFLSDWLQJ LQ WKH -RLQW :RUNLQJ *URXS DQGSURYLGHWKHPRSSRUWXQLW\WREHDEOHWRFRPSHWH
0HHWLQJGHOHJDWLRQDOVRXQGHUWRRNWKHSURPRWLRQDO ZLWKWKHJOREDOSOD\HUV8QGHUWKHSURJUDPDEDWFK
DFWLYLWLHVXQGHUWKH¶0DNHLQ,QGLD·DQG¶'LJLWDO,QGLD· RIPRELOHKDQGVHWGHVLJQHQJLQHHUVLVEHLQJWUDLQHG
FDPSDLJQ LQFOXGHG RUJDQL]LQJ D URDG VKRZ LQ LQ,QGLDDQG7DLZDQ
.\RWR7KHURDGVKRZZDVDWWHQGHGE\SHRSOH   +DQGKROGLQJ DQG IDFLOLWDWLRQ IRU
DQG WKUHH OHDGLQJ -DSDQHVH &RPSDQLHV QDPHO\ ,QYHVWRUV
0XUDWD 1LGHF DQG 6KLPDG]X &RUSRUDWLRQ
SUHVHQWHG WKHLU SODQV LQ ,QGLD WR SURPRWH $Q ,QYHVWPHQW )DFLOLWDWLRQ &HOO KDV EHHQ
LQYHVWPHQWLQWKH(6'06HFWRU2QWKHVLGHOLQHVRI HVWDEOLVKHG IRU 0HLW< WR KDQGKROG DQG KHOS
-:*RQHWRRQHPHHWLQJVZHUHDOVRDUUDQJHGZLWK LQYHVWRUV GXULQJ YDULRXV VWDJHV RI WUDQVLWLRQ 7R
WKH6HQLRU([HFXWLYHVRI(OHFWURQLFV0DQXIDFWXULQJ H[SHGLWHDQGIDFLOLWDWHWKHSURSRVDOVRILQYHVWPHQW
&RPSDQLHVZKLFKLQFOXGHG0XUDWD-DSDQ'LVSOD\ IURP FRPSDQLHV IDFLOLWDWH LQWHUDFWLRQV ZLWK 6WDWH


 $QQXDO5HSRUW

*RYHUQPHQWVDQGRWKHUDJHQFLHVRI*RYHUQPHQWRI WKLV HQGHDYRXU WKH 0LQLVWU\ KHOSV YDULRXV

,QGLD+HOS'HVNZLWKLQWKH0LQLVWU\DOVRVSHFLÀFDOO\ WHFKQRORJ\SOD\HUVWRH[SORUHSRWHQWLDOSDUWQHUVIRU
H[LVWVIRU-DSDQDQG,VUDHOUHVSHFWLYHO\ WHFKQRORJ\ WUDQVIHU DQG MRLQW YHQWXUHV IRU
7ZLWWHU+DQGOH HOHFWURQLFVPDQXIDFWXULQJLQ,QGLD7KHSODWIRUPKDV
E H H Q  X W L O L ] H G  E \     P X O W L Q D W L R Q D O  D Q G
6RFLDOPHGLDKDVHPHUJHGDVDSUHIHUUHGPHGLXP GRPHVWLFFRPSDQLHVWRGLVSOD\WKHLULQWHQWWRVHHN
E\WKHGHFLVLRQPDNHUVDQGJHQHUDOSXEOLFDWODUJH VXLWDEOH SDUWQHUV /LQN IRU WKH 3RUWDO LV
WR FRPPXQLFDWH LQWHUDFW DQG HQJDJH ZLWK HDFK KWWSZZZGHLW\JRYLQHVGPRIIHUV
RWKHU 7DNLQJ WKLV LQWR DFFRXQW 0HLW< LV KDYLQJ D
7ZLWWHU DFFRXQW ´#(OHFWURQLFV *R,µ ZKLFK LV   ,QIRUPDWLRQ 7HFKQRORJ\ ,QYHVWPHQW
DSSUHFLDWHGE\YDULRXV(6'0VWDNHKROGHUVDQGLV 5HJLRQ ,7,5
WXUQLQJ RXW WR EH D SUHIHUUHG PHGLXP RI ,7,53ROLF\5HVROXWLRQZDVQRWLÀHGE\0HLW<WR
HQJDJHPHQWE\WKHSHRSOH7KH7ZLWWHUDFFRXQWKDV SURPRWH LQYHVWPHQW LQ ,7 ,7H6 DQG (OHFWURQLF
DOUHDG\KDVDIROORZHUVKLSRIDURXQG +DUGZDUH 0DQXIDFWXULQJ (+0  %DVHG RQ WKH
%%3RUWDO SURSRVDOVUHFHLYHGIURP*RYHUQPHQWRI.DUQDWDND
DQG *RYHUQPHQW RI $QGKUD 3UDGHVK 0HLW< KDG
,QRUGHUWRDWWUDFWLQYHVWPHQWLQWR(6'0VHFWRUDQG QRWLÀHG VHWWLQJ XS RI ,7,5V QHDU %HQJDOXUX RQ
F U H D W H  R S S R U W X Q L W L H V  W R  L Q W U R G X F H  O D W H V W  DQG +\GHUDEDG RQ  DIWHU
WHFKQRORJLHVWR,QGLDQLQGXVWU\DFRPPRQSODWIRUP WDNLQJDSSURYDORI&DELQHW&RPPLWWHHRQ(FRQRPLF
LV DYDLODEOH RQ 0HLW<·V ZHEVLWH ZKHUH WKH $IIDLUV &&($ $QRWHIRU$PHQGPHQWLQ,7,53ROLF\
WHFKQRORJ\SURYLGHUVWHFKQRORJ\VHHNHUVDQG-9 5HVROXWLRQ  ZDV VXEPLWWHG WR &DELQHW
VHHNHUV FRXOG FRPH WRJHWKHU WR H[SORUH 6HFUHWDULDW RQ  IRU FRQVLGHUDWLRQ RI
SRVVLELOLWLHVRIWLHXSDQGSRVVLEOHFROODERUDWLRQ,Q &&($


 &+$37(5
0$.(,1,1',$
62)7:$5( 6(59,&(6

*OREDO3HUVSHFWLYH ,QGLDQ ,7,7(6 LQGXVWU\ RIIHUV FRVWHIIHFWLYHQHVV

7KH ,QGLDQ ,QIRUPDWLRQ 7HFKQRORJ\  ,QIRUPDWLRQ JUHDWTXDOLW\KLJKUHOLDELOLW\VSHHG\GHOLYHULHVDQG
7HFKQRORJ\(QDEOHG6HUYLFHV ,7,7(6 LQGXVWU\LVD DERYH DOO WKH XVH RI VWDWHRIWKHDUW WHFKQRORJLHV
JOREDOSRZHUKRXVHWRGD\DQGLWVLPSDFWRQ,QGLD JOREDOO\
KDV EHHQ LQFRPSDUDEOH  ,Q WKH ODVW GHFDGH WKH 7KLV\HDUWKHJOREDOWHFKQRORJ\LQGXVWU\VDZIDLUO\
LQGXVWU\KDVJURZQVL[IROGLQUHYHQXHWHUPVDQG PRGHVW\HWFRPPHQGDEOHJURZWKDERXWDIWHU
UHODWLYHVKDUHWR,QGLD·V*'3KDVLQFUHDVHGWR! DFRXSOHRI\HDUVRIUHPDLQLQJÁDW7KHJOREDO,7
SHUFHQW  ,QGLD LV WKH WRSPRVW RIIVKRULQJ %30 PDUNHW VWRRG DW 86 WULOOLRQ LQ 
GHVWLQDWLRQ IRU ,7 FRPSDQLHV DFURVV WKH ZRUOG H[FOKDUGZDUH $VSHU1$66&20UHSRUWVJURZWK
+DYLQJSURYHQLWVFDSDELOLWLHVLQGHOLYHULQJERWKRQ ZDVH[SHULHQFHGLQ,76HUYLFHVVHFWRUDW GXHWR
VKRUH DQG RIIVKRUH VHUYLFHV WR JOREDO FOLHQWV FORXG  %30 VHFWRU DW  SDFNDJHG VRIWZDUH DW
HPHUJLQJ WHFKQRORJLHV QRZ RIIHU DQ HQWLUH QHZ  DQG JOREDO 5 ' DW OLWWOH RYHU   )XUWKHU
JDPXWRIRSSRUWXQLWLHVIRUWRS,7ÀUPVLQ,QGLD7KH JOREDO VRXUFLQJ PDUNHW JURZWK FRQWLQXHV WR
FRXQWU\ V FRVW FRPSHWLWLYHQHVV LQ SURYLGLQJ ,7 RXWSHUIRUP,7%30LQGXVWU\JURZWK,QJOREDO
VHUYLFHVZKLFKLVDSSUR[LPDWHO\WLPHVFKHDSHU VRXUFLQJ JUHZ  WLPHV WR UHDFK 86  
WKDQ WKH 86 FRQWLQXHV WR EH LWV 8QLTXH 6HOOLQJ ELOOLRQ  ,QGLD FRQWLQXHG DV WKH ZRUOG·V 1R 
3URSRVLWLRQ 863  LQ WKH JOREDO VRXUFLQJ PDUNHW VRXUFLQJGHVWLQDWLRQZLWKDKHDOWK\DQGVLJQLÀFDQW


 $QQXDO5HSRUW

VKDUHRI H&RPPHUFH
,WLVHVWLPDWHGDVSHU1$66&20WKDW)<ZLOO ,QGLD KDV DOVR HPHUJHG DV D IDVW    JURZLQJ H
VHHLQGXVWU\UHYHQXHWRXFKLQJ86ELOOLRQXS FRPPHUFH  GHVWLQDWLRQ7KLVLVUHÁHFWHGWKURXJK
IURP 86   ELOOLRQ LQ )<  DQG VKRZLQJ D WKH IDFW WKDW )7$V EHLQJ VLJQHG KDYH D VSHFLÀF
JURZWK RI RYHU  ,Q DGGLWLRQ H&RPPHUFH ZLOO FKDSWHURQHFRPPHUFH
KDYH UHYHQXHV RI DERXW   86   ELOOLRQ ,Q LWV 7KH0LQLVWU\KDVDOVRVSHDUKHDGHGWKHQHJRWLDWLRQV
FRQWULEXWLRQ WR WKH QDWLRQDO H[FKHTXHU ,7%30 RQHFRPPHUFHFKDSWHUXQGHUYDULRXVIRUXPV)UHH
FRQWLQXHVWRIDUHIDYRXUDEO\RQVHYHUDOSDUDPHWHUV 7UDGH $JUHHPHQWV )7$V  VXFK DV 5HJLRQDO
VKDUHLQWRWDOVHUYLFHH[SRUWVLVHVWLPDWHGDW &RPSUHKHQVLYH (FRQRPLF 3DUWQHUVKLS 5&(3 
DQGLWFRQWULEXWHVWR,QGLD·V*'32YHUDOOWKH :72 %5,&6 DQG (8,QGLD %LODWHUDO 7UDGH HWF $
LQGXVWU\ LV HVWLPDWHG WR HPSOR\ QHDUO\  PLOOLRQ :KLWH3DSHURQHFRPPHUFHQHJRWLDWLRQVZDVDOVR
SHRSOH  DQ DGGLWLRQ RI  SHRSOH DSSUR[  HYROYHGZLWKLQWHUPLQLVWHULDOFRQVXOWDWLRQ
RYHU )<  ,7%30 H[SRUWV IURP ,QGLD DUH
H[SHFWHGWRUHDFK86ELOOLRQGXULQJ)< ,76HUYLFHV %32
D<R<JURZWK7KHWUHQGDQGWKHIDFWRUV L ,QGLD%323URPRWLRQ6FKHPH ,%36 
FRQWULEXWLQJWRJURZWKDUHVLPLODUWRJOREDOPDUNHWV
8QGHU 'LJLWDO ,QGLD SURJUDPPH WKH *RYHUQPHQW
DQG HQFRXUDJLQJO\ DW D IDVWHU UDWH  ,QGLD·V
KDVODXQFKHG,QGLD%323URPRWLRQ6FKHPH ,%36 
GRPHVWLF,7%30PDUNHWLVOLNHO\WRJURZ<R<
IRU FUHDWLRQ RI HPSOR\PHQW RSSRUWXQLWLHV DQG
WR UHDFK 86   ELOOLRQ H[FOXGLQJ H&RPPHUFH 
SURPRWLRQ RI %32,7(6 RSHUDWLRQV DFURVV WKH
GXULQJ)< 5DSLGGLJLWL]DWLRQLVH[SHFWHG
FRXQWU\ SDUWLFXODUO\ LQVPDOOFLWLHVWRZQV LQFOXGLQJ
WR IXUWKHU FDWDO\VH JURZWK    ,QGLD KDV WKH QG
UXUDODUHDV $URXQG%32,7(6VHDWVKDYH
ODUJHVWXVHUEDVHDIWHU&KLQDZLWKLWV!PLOOLRQ
EHHQ GLVWULEXWHG DFURVV 6WDWH V 87 V  EDVHG RQ
,QWHUQHWVXEVFULEHUV,WLVPRVWDJJUHVVLYHLQJOREDO
SRSXODWLRQ SHUFHQWDJH DV SHU &HQVXV 
PDUNHWVKDUHVDFURVVVHJPHQWVEHLWWKHQXPEHURI
H[FOXGLQJ PHWUR FLWLHV DORQJ ZLWK WKHLU XUEDQ
LQWHUQHWXVHUVVPDUWSKRQHXVHUVDSSGRZQORDGV
D J J O R P H U D W L R Q  Y L ]   % D Q J D O R U H   & K H Q Q D L 
DQGRQOLQHSD\PHQWV7KHUHLVVLJQLÀFDQWSXVKIURP
+\GHUDEDG .RONDWD 0XPEDL 1&5 3XQH DQG
WKHJRYHUQPHQWWRJRGLJLWDODQGUHFRJQLVHGE\WKH
1RUWK(DVW5HJLRQ 1(5 
JOREDOWHFKQRORJ\JLDQWV7KH\HDUVDZDVLJQLÀFDQW
ERRVW WR GLJLWDO SD\PHQWV OHDGLQJ WR D FDVKOHVV 7KH VFKHPH SURYLGHV FDSLWDO VXSSRUW DORQJ ZLWK
SDSHUOHVVHFRQRP\ VHYHUDO VSHFLDO LQFHQWLYHV OLNH HQFRXUDJLQJ
HPSOR\PHQW WR ZRPHQ DQG SK\VLFDOO\ GLVDEOHG
,QWKHFXUUHQWLQIRUPDWLRQHUDHQRUPRXVDPRXQWVRI
SHUVRQVVHWWLQJXSRSHUDWLRQVDWRWKHUWKDQ6WDWH
GDWD KDYH EHFRPH DYDLODEOH RQ KDQG WR GHFLVLRQ
&DSLWDOV SURPRWLQJ ORFDO HQWUHSUHQHXUV HWF XSWR
PDNHUV%LJGDWDDQGDQDO\WLFVKDYHFOLPEHGWRWRS
C ODNKVHDW LQ WKH IRUP RI 9LDELOLW\ *DS )XQGLQJ
RI FRUSRUDWH DJHQGD )XUWKHUPRUH GHFLVLRQ
9*)   7KHVHOHFWLRQRIHOLJLEOHFRPSDQLHVWRVHW
PDNHUV QHHG WR EH DEOH WR JDLQ YDOXDEOH LQVLJKWV
XS %32,7(6 RSHUDWLRQV XQGHU ,%36 LV WKURXJK
IURP VXFK YDULHG DQG UDSLGO\ FKDQJLQJ GDWD
RQOLQH ELGGLQJ SURFHVV 7LOO QRZ DERXW 
UDQJLQJ IURP GDLO\ WUDQVDFWLRQV WR FXVWRPHU
FRPSDQLHVKDYHEHHQGHFODUHGVXFFHVVIXOWRVHWXS
LQWHUDFWLRQVDQGVRFLDOQHWZRUNGDWD
%32,7(6RSHUDWLRQVIRUaVHDWVGLVWULEXWHG


0LQLVWU\RI(OHFWURQLFV ,QIRUPDWLRQ7HFKQRORJ\ 0HLW<

DURXQGORFDWLRQVFRYHULQJ6WDWHVDQG87V  ,QWHUQDWLRQDO 2XWUHDFK ² VKRZFDVLQJ

)XUWKHU GHWDLOV RI WKH VFKHPH DUH DYDLODEOH DW ,QGLD·V,7WDOHQW
ZZZPHLW\JRYLQLESVDQGKWWSVLESVVWSLLQ :LWKWKH*RYHUQPHQW·VQHZRXWORRNRQHFRQRPLF
LL 1 RUWK (DVW %32 3URPRWLRQ 6FKHPH GLSORPDF\ 'LJLWDO ,QGLD 0DNH,Q,QGLD 6WDUWXS
1(%36 ,QGLDWKH,QWHUQDWLRQDO&RRSHUDWLRQ ,& 'LYLVLRQRI
*RYHUQPHQW KDV DOVR ODXQFKHG 1RUWK (DVW %32 0HLW<KDVV\QHUJL]HGLWVHIIRUWVWRIXUWKHU6RIWZDUH
3URPRWLRQ 6FKHPH 1(%36  XQGHU 'LJLWDO ,QGLD DQG 6HUYLFH 6HFWRU 7UDGH JOREDOO\ LQFOXGLQJ
3URJUDPPHWRLQFHQWLYL]HVHWWLQJXSRIVHDWV GLYHUVLÀFDWLRQ RI WR JHRJUDSKLHV RWKHU WKDQ 86$
%32,7(62SHUDWLRQVLQ1RUWK(DVW5HJLRQ 1(5  DQG 8. (IIRUWV KDYH DOVR EHHQ PDGH WR HYROYH
IRU FUHDWLRQ RI HPSOR\PHQW RSSRUWXQLWLHV IRU WKH VWUDWHJLF FRRSHUDWLRQ ZLWK SRWHQWLDO SDUWQHUV LQ
\RXWK DQG JURZWK RI ,7,7(6 ,QGXVWU\  1(%36 HPHUJLQJ DQG IURQWLHU DUHDV RI LQIRUPDWLRQ
SURYLGHVVLPLODUÀQDQFLDOVXSSRUWDV,%367LOOQRZ WHFKQRORJ\XQGHUELODWHUDODQGUHJLRQDOIUDPHZRUN
 VHDWV KDYH EHHQ DOORFDWHG WR VXFFHVVIXO RI FRRSHUDWLRQ ,& 'LYLVLRQ·V LQWHUDFWLRQV ZLWK
ELGGHUV WR VHWXS %32,7(6 RSHUDWLRQV XQGHU FRXQWULHV LQWHUQDWLRQDO ERGLHV DFDGHPLD
1(%36 FRYHULQJ  6WDWHV RI 1(5 $VVDP LQVWLWXWLRQV IRU IRUJLQJ SDUWQHUVKLSV IRU PXWXDO
1DJDODQG 0HJKDOD\D 0DQLSXU DQG $UXQDFKDO SURJUHVVDOVRSURYLGHDQRSSRUWXQLW\IRUVKDULQJRI
3UDGHVK  )XUWKHU GHWDLOV RI WKH VFKHPH DUH NQRZOHGJH DQG H[SHULHQFH 7KH ,& 'LYLVLRQ KDV
DYDLODEOHDWZZZPHLW\JRYLQQHESV EHHQLQYROYHGLQWKHIROORZLQJWDVNV

*RRJOH&(26XQGDU3LFKDLPHHWV6K5DYL6KDQNDU3UDVDG0 ( ,7 GLVFXVVLQJFROODERUDWLYHHIIRUWV
WRZDUGVEXLOGLQJV\VWHPVDQGLQIUDVWUXFWXUHVIRU'LJLWDO,QGLD


 $QQXDO5HSRUW

‡ $OLJQLQJIRUHLJQFROODERUDWLRQDFWLYLWLHVLQ,QGLD·V WKH UHJXODWLRQV RI PHPEHU VWDWHV 3URPRWH RSHQ

¶'LJLWDO ,QGLD SURJUDP· DQG ¶0DNH LQ ,QGLD· VRXUFHWHFKQRORJLHVHWFWRDGGUHVV,QGLD·VVWDQFH
LQLWLDWLYHVRIWKH*RYHUQPHQWRI,QGLD RQWKH'LJLWDO(FRQRP\
‡ 6WUHQJWKHQ ,QGLD·V SRVLWLRQ RQ 0XOWLODWHUDO  &RRSHUDWLRQ WKURXJK :RUNLQJ *URXSV
IRUXPV %LODWHUDO,QWHUDFWLRQV
‡ & U H D W L Q J  D  F R Q G X F L Y H  H Q Y L U R Q P H Q W  I R U $PHHWLQJRI,QGLD86,&7:RUNLQJ*URXS ,&7:* 
LQWHUQDWLRQDO FRRSHUDWLRQ WR KHOS LQGXVWULHV WR ZDV KHOG RQ WK 6HSWHPEHU  LQ (OHFWURQLFV
FRRSHUDWHZLWKWKHLQGXVWULHVRIRWKHUFRXQWULHV 1LNHWDQ0HLW<1HZ'HOKL$IWHUWKHPHHWLQJD-RLQW
‡ )RVWHULQJHQFRXUDJLQJDQGSURPRWLQJUHVHDUFK 6WDWHPHQW ZDV VLJQHG 7KH -RLQW 6WDWHPHQW
DQG GHYHORSPHQW LQ WKH DSSOLFDWLRQ RI FRYHUHG WKH LVVXHV UHODWHG WR PRELOLW\ RI VNLOOHG
LQIRUPDWLRQWHFKQRORJ\UHODWHGIDFLOLWLHV SURIHVVLRQDOV ,QWHUQHW *RYHUQDQFH ,QWHUQHW RI
7KLQJV H&RPPHUFH &\EHU 6HFXULW\ ,&7(
‡ &RRUGLQDWLQJ WHFKQLFDO DQG SROLF\ LVVXHV ZLWK HTXLSPHQWVWDQGDUGVVHFXULW\DQGVDIHW\LQ,&7(
LQWHUQDWLRQDO ERGLHVLQVWLWXWLRQV OLNH 81 :6,6 SURGXFWVHWF)XUWKHUERWKWKHVLGHIXUWKHUDJUHHGWR
:RUOG %DQN :72 HWF WR VDIHJXDUG ,QGLD·V VHWXS WKH VXE ZRUNLQJ JURXSV RQ L  ,QWHUQHW
LQWHUHVW *RYHUQDQFH LL  ,QWHUQHW RI 7KLQJV DQG LLL  ,7
‡ ,QLWLDWLQJMRLQWSURMHFWVOLNH,7LQVWLWXWHVVRIWZDUH HTXLSPHQWVWDQGDUGVDQG(6'0,QDGGLWLRQ-RLQW
SDUNVSURJUDPPHVIRUMRLQW5 'DQGIDFLOLWDWLQJ :RUNLQJ *URXS -:*V  PHHWLQJV ZLWK 86$
,7$GYLVHUVHWF (XURSHDQ8QLRQDQG$]HUEDLMDQZHUHKHOGGXULQJ
WKH\HDUWRIXUWKHURXU6RIWZDUHDQG6HUYLFH6HFWRU
‡ 6KRZFDVLQJ ,QGLD·V ,&7 VWUHQJWK DFURVV WKH
WUDGH ZLWK WKHVH JHRJUDSKLHV DQG DOVR WR IRUJH
J O R E H  E \  R U J D Q L ] L Q J   V S R Q V R U L Q J  D Q G
FRRSHUDWLRQLQWKHDUHDRILQQRYDWLRQDQG5 '$
SDUWLFLSDWLQJ LQ WUDGH IDLUV V\PSRVLXPV
FRQFUHWHRXWFRPHEDVHGDFWLRQSODQDQGVSHFLÀF
H[KLELWLRQVHWF
LQLWLDWLYHV LQFOXGLQJ SURMHFWV ZHUH LGHQWLÀHG IRU
7KH ,& 'LYLVLRQ KDV EHHQ SXUVXLQJ WKH DERYH IXUWKHULQJVXFKFRRSHUDWLRQ$QXPEHURIELODWHUDO
REMHFWLYHV WKURXJK -RLQW :RUNLQJ *URXSV -:*  KLJKOHYHOPHHWLQJVZLWKGHOHJDWLRQVIURP&DQDGD
P H H W L Q J V   V L J Q L Q J  0 H P R U D Q G X P  R I *HUPDQ\ 6HUELD 6RXWK .RUHD 1LJHULD 8QLWHG
8QGHUVWDQGLQJV 0R8V  H[HFXWLQJ SURMHFWV LQ 6WDWHVHWFZHUHDOVRKHOGWRIXUWKHU,&7FRRSHUDWLRQ
GHYHORSLQJ HFRQRPLHV WR VKRZFDVH ,QGLD·V
8QGHU WKH IUDPHZRUN RI ,QGLD&KLQD 6WUDWHJLF
VWUHQJWKDQGVKRZFDVLQJWKHPLQPDMRU,7IDLUVDQG
(FRQRPLF 'LDORJXH D PHHWLQJ RQ +LJK7HFK
V\PSRVLXPV$OVRLVVXHVIDFHGLQUHJDUGWR,QGLD·V
:RUNLQJ*URXSRQWK2FWLQ1HZ'HOKL,QGLD
,7H[SRUWVKDYHEHHQKDQGOHGDWYDULRXVIRUXPVDQG
ZDV KHOG EHWZHHQ WKH 0LQLVWU\ RI (OHFWURQLFV DQG
SODWIRUPVIURPWLPHWRWLPH
,QIRUPDWLRQ 7HFKQRORJ\ RI ,QGLD DQG 1DWLRQDO
,QGLDKDVDOVRDFWLYHO\SDUWLFLSDWHGLQWKH*ZKHUH 'HYHORSPHQWDQG5HIRUP&RPPLVVLRQRI&KLQDLQ
GHOLEHUDWLRQV RQ 'LJLWDO (FRQRP\ DUH JRLQJ RQ 2FWREHU'XULQJWKHPHHWLQJDQ$FWLRQ3ODQ
0HLW< VKDUHG LWV FRPPHQWV UHJDUGLQJ 'LJLWDO RQ ´'LJLWDO ,QGLDµ DQG ´,QWHUQHW 3OXVµ ZDV VLJQHG
,QFOXVLRQ PRELOLW\ RI ,7 SURIHVVLRQDOV PDUNHW EHWZHHQWZRVLGHV
DFFHVV 3URPRWH HFRPPHUFH FRRSHUDWLRQ ZLWKLQ


0LQLVWU\RI(OHFWURQLFV ,QIRUPDWLRQ7HFKQRORJ\ 0HLW<

0XOWLODWHUDO&RRSHUDWLRQ 0R8V$JUHHPHQWV-',V
8QGHUWKH&KLQHVH3UHVLGHQF\LQDSURSRVDO 7R IXUWKHU FRRSHUDWLRQ ZLWK RWKHU HPHUJLQJ
RQ 'LJLWDO (FRQRP\ ZDV LQLWLDWHG E\ &KLQD DQG D HFRQRPLHV WKH 0R8V$JUHHPHQWV  LQ WKH ÀHOG RI
'LJLWDO(FRQRP\7DVN)RUFH '(7) ZDVVHWXSWR ,QIRUPDWLRQ 7HFKQRORJ\ DQG (OHFWURQLFV ZHUH
WDNHXSWKHPDWWHUIRUZDUG$IWHUVHYHUDOURXQGRI VLJQHG ZLWK 6HUELD 6RXWK $IULFD 7XQLVLD DQG
QHJRWLDWLRQVWKH'LJLWDO(FRQRP\'HYHORSPHQWDQG 9 L H W Q D P   7 K H  0 R 8 V  Z H U H  E D V H G  R Q  D
&RRSHUDWLRQ,QLWLDWLYHZDVÀQDOLVHG0HLW<VKDUHGLWV FRPSUHKHQVLYH VWXG\ RQ SRWHQWLDO FRRSHUDWLRQ
YLHZV UHJDUGLQJ 'LJLWDO ,QFOXVLRQ PRELOLW\ RI ,7 DUHDV LQ ,&7 GRPDLQ ,Q DGGLWLRQ WR WKHVH 0R8V
SURIHVVLRQDOV PDUNHW DFFHVV 3URPRWH H VSHFLÀF0R8VRQ&\EHU6HFXULW\FRRSHUDWLRQZHUH
FRPPHUFH FRRSHUDWLRQ 3URPRWH RSHQ VRXUFH DOVRVLJQHGZLWK8]EHNLVWDQDQG9LHWQDP
WHFKQRORJLHVHWFWRXVH,&7DVDWRROIRUVRFLDODQG ,QWHUQDWLRQDO3URMHFWVLQ,&7
HFRQRPLF FRQFOXVLRQ &RQVHTXHQWO\ GXULQJ WKH
/HDGHUV6XPPLWLQ6HSWHPEHUDW+DQJ]KRX 7R VKRZFDVH ,QGLD·V SURZHVV LQ 6RIWZDUH DQG
&KLQDIROORZLQJGRFXPHQWVKDYHEHHQÀQDOLVHG 6HUYLFH 6HFWRU 0HLW< KDV EHHQ DVVLVWLQJ WKH
0LQLVWU\RI([WHUQDO$IIDLUVWRH[HFXWHDQXPEHURI
D  */HDGHUV·&RPPXQLTXH+DQJ]KRX6XPPLW VWUDWHJLF SURMHFWV LQ GHYHORSLQJ DQG OHDVW
E  *%OXHSULQWRQ,QQRYDWLYH*URZWK GHYHORSHGFRXQWULHV8QGHUVXFKLQLWLDWLYHVPRUH
F  * 'LJLWDO (FRQRP\ 'HYHORSPHQW DQG WKDQ  &HQWHUV RI ([FHOOHQFH RQ ,7 ,7 3DUNV
&RRSHUDWLRQ,QLWLDWLYH &DSDFLW\%XLOGLQJ,QVWLWXWHVWHOHPHGLFLQHDQGWHOH
HGXFDWLRQ IDFLOLWLHV HQHWZRUN KDYH EHHQ


 $QQXDO5HSRUW

HVWDEOLVKHG WLOO GDWH $OVR IROORZLQJ SURMHFWV ZHUH y 6HWWLQJXSRI&HQWUHRI([FHOOHQFHLQ5RVHDX²

LQLWLDWHGDUHXQGHUH[HFXWLRQGXULQJWKH\HDU &RPPRQZHDOWKRI'RPLQLFD
&203/(7('352-(&76)< y 6HWWLQJXSRIDVXVWDLQDEOH,7,QIUDVWUXFWXUHIRU
y 8SJUDGDWLRQ RI -DZDKDUODO 1HKUX ,QGLD ² $GYDQFHG,77UDLQLQJXVLQJFRQYHQWLRQDOYLUWXDO
8]EHNLVWDQ&HQWUHIRU,7DW7DVKNHQW FODVVURRP  H/HDUQLQJ WHFKQRORJLHV LQ
&DPERGLD
y 7UDLQLQJRI7UDLQHUVIURP7XUNPHQLVWDQ
y ,&75HVRXUFH&HQWUHDW1HOVRQ0DQGHOD$IULFDQ
y 7HOHPHGLFLQH1HWZRUNLQ$UPHQLD ,QVWLWXWH RI 6FLHQFH  7HFKQRORJ\ DW $UXVKD
y 3URMHFW0DQDJHPHQW &RQVXOWDQF\IRUVHWWLQJ 7DQ]DQLD
XS RI /DQJXDJH /DERUDWRULHV  (5HVRXUFH y 6HWWLQJXSRIDVXVWDLQDEOH,7,QIUDVWUXFWXUHIRU
&HQWUHDW<DQJRQDQG1D\3\L7DZLQ0\DQPDU $GYDQFHG,77UDLQLQJXVLQJFRQYHQWLRQDOYLUWXDO
y 7HOHPHGLFLQH 1HWZRUN LQ .\UJ\]VWDQ XQGHU FODVVURRP  H/HDUQLQJ WHFKQRORJLHV LQ
&HQWUDO$VLDH1HWZRUN 0\DQPDU
y &HQWUHRI([FHOOHQFHLQ+3&DW+867LQ+DQRL y 6HWWLQJXSRIDVXVWDLQDEOH,7,QIUDVWUXFWXUHIRU
9LHWQDP $GYDQFHG,77UDLQLQJXVLQJFRQYHQWLRQDOYLUWXDO
FODVVURRP  H/HDUQLQJ WHFKQRORJLHV LQ /DR
y 8SJUDGDWLRQRI&HQWUHRI([FHOOHQFHLQ3DQDPD
3'5
&LW\3DQDPD
y 6HWWLQJXSRI&RPSXWHU/DEVDW6FKRROVLQ
21*2,1*352-(&76
7DMLNLVWDQ
y ,QGLD².D]DNKVWDQ&HQWUHRI([FHOOHQFHLQ,&7DW
*URZWKRI6RIWZDUHDQG6HUYLFHV6HFWRU
$VWDQD
,7,7(6 LQGXVWU\ KDV HPHUJHG DV RQH RI WKH PRVW
y 6WUHQJWKHQLQJ RI ,QGLD ² 0\DQPDU &HQWUH RI
G\QDPLF VHFWRUV LQ ,QGLD·V HFRQRP\ DQG LV
([FHOOHQFHLQ,&7DW<DQJRQ
UHVSRQVLEOHIRUWKHJOREDOUHFRJQLWLRQRI,QGLDDVD
y 3URMHFW0DQDJHUFXP&RQVXOWDQWIRUVHWWLQJXS µVRIWµSRZHU7KHFRQWULEXWLRQEHLQJPDGHE\WKH,7
RI &HQWUDO $VLD H1HWZRUN WR FRQQHFW ,QGLD IRU LQGXVWU\ WRZDUGV WKH FRXQWU\ V *'3 KDV OHG WR D
7HOHPHGLFLQH 7HOHHGXFDWLRQ VWHDG\ JURZWK RI WKH ,QGLDQ HFRQRP\ ,QGLD V ,7
y ,7&HQWUHLQ4XLWR(FXDGRU LQGXVWU\ LV UHJDUGHG DV D KXE RI LQQRYDWRUV
SURYLGLQJZRUOGFODVVWHFKQRORJ\VROXWLRQVDFURVV
y ,7&HQWUHLQ/LPD3HUX
WKHJOREH7KHFRQVLVWHQWJURZWKRIWKH,7VHJPHQW
y 6HWWLQJXSRIFRPSXWHUODEVLQVFKRROVXQGHU KDV FUHDWHG SKHQRPHQDO ZHDOWK HPSOR\PHQW
9D\RWV']RUUHJLRQLQ$UPHQLD H[SRUWVDQGDVLJQLÀFDQWO\ODUJHUHVHUYRLURIKLJKO\
y 6HWWLQJ XS RI ,QGLD ² 3DOHVWLQH &HQWUH RI FRPSHWHQW WHFKQRFUDWV DQG NQRZOHGJH ZRUNHUV
([FHOOHQFH LQ ,&7 DQG 'LJLWDO /HDUQLQJ  7RGD\DPRQJYDULRXVVHFWRUVRIWKHHFRQRP\,7
,QQRYDWLRQ&HQWUHLQ5DPDOODK ,7(6VHFWRULVWKHRQHZKRVHVHUYLFHVDUHQHHGHG
IRU UDSLG JURZWK RI WKH HFRQRP\ DQG DOVR IRU
y 6HWWLQJXSRI&HQWUHRI([FHOOHQFHLQ6DQ-RVH²
PRGHUQL]DWLRQRIYDULRXVFRQQHFWHGVHFWRUV
&RVWD5LFD


0LQLVWU\RI(OHFWURQLFV ,QIRUPDWLRQ7HFKQRORJ\ 0HLW<

7KH 0LQLVWU\ RI (OHFWURQLFV DQG ,QIRUPDWLRQ DOVRKHOSHGSHRSOHVHWWOHGLQIDUÁXQJWRSRJUDSKLHV

7HFKQRORJ\ 0HLW<  LVPDNLQJVXVWDLQHGHIIRUWVWR WRFRQQHFWZLWKWKHUHVWRIWKHZRUOG,WKDVJLYHQ
SURPRWH GRPHVWLF ,7,7(6 LQGXVWU\ DV ZHOO DV ELUWKWRHJRYHUQDQFHSUDFWLFHVDVDUHVXOWRIZKLFK
FRQWLQXHWRLQFUHDVHH[SRUWV0HLW<LVFRRUGLQDWLQJ SHRSOH JHW DQ HDV\ DFFHVV YLD HKHDOWK H
VWUDWHJLF DFWLYLWLHV SURPRWLQJ VNLOO GHYHORSPHQW HGXFDWLRQ HWLFNHWLQJ HWF WR WKH YDULRXV
SURJUDPPHVHQKDQFLQJLQIUDVWUXFWXUHFDSDELOLWLHV JRYHUQPHQWDOVHUYLFHV
DQGVXSSRUWLQJ5 'IRU,QGLD·VOHDGHUVKLSSRVLWLRQ 2YHUDOO,7,7(63HUIRUPDQFH
LQ ,7 ,7(6 VHFWRU  7KH ,QGLDQ JRYHUQPHQW LV
HPSKDVLVLQJRQEHWWHUWHFKQRORJ\HQDEOHGGHOLYHU\ ,QGLDQ,7,7(6LQGXVWU\KDVFRQWLQXHGWRSHUIRUPLWV
PHFKDQLVPIRUDPXOWLWXGHRIJRYHUQPHQWSURMHFWV UROHDVWKHFRQVLVWHQWJURZWKGULYHUIRUWKHHFRQRP\
:LWKWKH¶'LJLWDO,QGLD·LQLWLDWLYHWKHGRPHVWLFPDUNHW $VSHU1$66&206WUDWHJLF5HYLHZ)<ZLOOVHH
IRU,7,7(6ORRNVIRUZDUGWRDEULJKWIXWXUH,QGLDKDV LQGXVWU\ UHYHQXH WRXFKLQJ 86  %LOOLRQ ZLWK D
WKHQGODUJHVWXVHUEDVHDIWHU&KLQDZLWKLWV! JURZWKRIRYHU,QDGGLWLRQH&RPPHUFHZLOOKDYH
PLOOLRQ,QWHUQHWVXEVFULEHUV,WLVPRVWDJJUHVVLYHLQ UHYHQXHVRIDERXW86%LOOLRQ,QLWVFRQWULEXWLRQ
JOREDO PDUNHW VKDUHV DFURVV VHJPHQWV EH LW WKH WR QDWLRQDO H[FKHTXHU ,7%30 FRQWLQXHV WR IDUH
QXPEHU RI LQWHUQHW XVHUV VPDUWSKRQH XVHUV DSS IDYRXUDEO\ RQ VHYHUDO SDUDPHWHUV VKDUH LQ WRWDO
GRZQORDGV DQG RQOLQH SD\PHQWV 7KHUH LV VHUYLFHH[SRUWVLVHVWLPDWHGDWDQGLWFRQWULEXWHV
VLJQLÀFDQWSXVKIURPWKHJRYHUQPHQWWRJRGLJLWDO  WR ,QGLD·V *'3  7KH ,QGLDQ ,7,7(6 LQGXVWU\
DQGUHFRJQLVHGE\WKHJOREDOWHFKQRORJ\JLDQWV UHYHQXHDJJUHJDWH ([SRUWV'RPHVWLF ZLWQHVVHG
DJURZWKRI DERXWDQGUHDFKHGa86
,7 VHFWRU KDV KHOSHG WKH GRPHVWLF HFRQRP\ WR ELOOLRQ aC&URUHV LQ)<DVFRPSDUHG
LQWHJUDWH ZLWK WKH ZRUOG HFRQRP\ ,W KDV PDGH WR86ELOOLRQLQ)< 7KH,7,7(6LQGXVWU\
VLJQLÀFDQWLPSDFWRQWKHOLYHVRIPDQ\SHRSOH,WKDV UHYHQXHRYHUWKHSDVW\HDUVLVDVXQGHU


/Ŷh^ΨŝůůŝŽŶƐ
'RPHVWLF
 

   
([SRUWV



  
 
 



 
 
  




     (

6RXUFH1$66&2065


 $QQXDO5HSRUW

2YHUDOO,7,7(6*URZWK <R< RUGHU RI 86  ELOOLRQ LQ \HDU  DV
FRPSDUHGWR86ELOOLRQLQ\HDU
([SRUWV5HYHQXH
‡ ,7(6%32VHJPHQWKDVEHHQUHLQYHQWLQJLWVHOI
,Q)<,7%30H[SRUWVIURP,QGLDDUHH[SHFWHG
LQ WKH SDVW IHZ \HDUV DQG LV H[SHFWHG WR
WRUHDFK86ELOOLRQD<R<JURZWK(5 '
JHQHUDWHH[SRUWUHYHQXHRIWKHRUGHURIa86
FRQWLQXHV WR EH WKH IDVWHVW JURZLQJ VHJPHQW DW
ELOOLRQLQ\HDUDVFRPSDUHGWR86
 GULYHQ E\ JOREDO 2(0V LQFUHDVLQJO\
ELOOLRQLQ\HDU
HPEHGGLQJVRIWZDUH VHUYLFHVLQWRWKHLUSURGXFWV
,7 VHUYLFHV JURZLQJ DW  LV GULYHQ E\ FORXG DQG ‡ ( Q J L Q H H U L Q J  5 '  D Q G  3 U R G X F W
%30H[SRUWVDW<R<JURZWKLVEHLQJGULYHQE\ 'HYHORSPHQWKDVUHJLVWHUHGDJURZWKRIDERXW
FORXG PRELOLW\ DQG DGYDQFHG DQDO\WLFV DV SHU LQWKHH[SRUWVRIZKLFKLVHVWLPDWHGWR
1$66&20 UHDFK86ELOOLRQLQ\HDUIURPWKH
OHYHORI86ELOOLRQLQ\HDU
‡ ,7 6HUYLFHV LV WKH IDVWHVW JURZLQJ VHJPHQW
ZLWKLQWKH,QGLDQ,7,7(6VHFWRU7KLVVHJPHQWLV ‡ 7KH ,7,7(6 LQGXVWU\ H[SRUW JURZWK WUHQG RYHU
HVWLPDWHGWRJHQHUDWHH[SRUWVUHYHQXHVRIWKH WKHSDVW\HDUVLVDVXQGHU

6:3URGXFWV /Ŷh^ΨŝůůŝŽŶƐ
 
 ,7(6 
 
,76HUYLFHV
  
  
 

  
 
  
 
  


  

  

  
      (

6RXUFH1$66&2065

3DWWHUQRI,7,7(6([SRUWVDFURVV*HRJUDSKLHV (

(XURSH ([FOXGLQJ8.



8.
 


86$
 


5HVWRI:RUOG




$VLD


86$8.DQG(8DFFRXQWIRUaRIWKHWRWDO,7,7(6H[SRUWV



0LQLVWU\RI(OHFWURQLFV ,QIRUPDWLRQ7HFKQRORJ\ 0HLW<

*HRJUDSKLFDO0DUNHW6KDUHRI,QGLDQ,7,7(6([SRUWV ,Q
 )< )< )< )< )< ( 
86$     
8.     
(8 H[FO8.      
$VLD     
5HVWRIWKH:RUOG     
6RXUFH1$66&20HHVWLPDWH

86DQG8.DUHWKHOHDGLQJFXVWRPHUPDUNHWVZLWKD FRPSDUHG WR C  FURUHV LQ \HDU 

FRPELQHGVKDUHRIQHDUO\ +RZHYHUWKHUHLV ZLWKDHVWLPDWHGJURZWKRIDERXWLQ,15
JURZLQJ GHPDQG IURP $3$& /DWLQ $PHULFD DQG WHUPV
0LGGOH(DVW$VLD
‡ 'RPHVWLF,7(6UHYHQXHLVHVWLPDWHGWRUHDFK
'RPHVWLF,7,7(63HUIRUPDQFH aCFURUHLQ\HDUIURPC
FURUHLQ\HDUDJURZWKRILQ
7KRXJKWKH,7,7(6VHFWRULVODUJHO\H[SRUWGULYHQ
,15WHUPV
WKHVL]HRIWKHGRPHVWLFPDUNHWLVDOVRVLJQLÀFDQW
,Q)<,QGLD·VGRPHVWLF,7%30PDUNHWLVOLNHO\ ‡ 'RPHVWLF (QJLQHHULQJ 5 ' DQG 3URGXFW
WR JURZ  <R< WR UHDFK 86   ELOOLRQ 'HYHORSPHQW ZKLFK LV HVWLPDWHG WR UHDFK
aC FURUH  H[FOXGLQJ H&RPPHUFH DV CFURUHLQ\HDUIURPWKHOHYHORI
FRPSDUHG WR 86  ELOOLRQ LQ   5DSLG CFURUHLQ\HDUZLWKD<R<JURZWK
GLJLWL]DWLRQLVH[SHFWHGWRIXUWKHUFDWDO\VHJURZWK RILQ,15WHUPV
‡ 'RPHVWLF ,7 6HUYLFHV VHFWRU LV WKH ODUJHVW ‡ 7KH,7,7(6LQGXVWU\GRPHVWLFUHYHQXHJURZWK
VHJPHQWZLWKFORVHWRVKDUHH[SHFWHGWR WUHQGRYHUWKHSDVW\HDUVLVDVXQGHU
UHDFK C FURUHV LQ \HDU  DV


6:3URGXFWV /Ŷ/EZϭϬϬϬƌŽƌĞƐ  

,7(6  
 ,76HUYLFHV
 
  




   
 
 
 
 
 

 

 

 





 

     (

6RXUFH1$66&2065

 
 $QQXDO5HSRUW

7KHJURZLQJHFRQRP\UDSLGDGRSWLRQRI,7DFURVV DQG UHJLRQDO EDFNJURXQGV 'LUHFW HPSOR\PHQW LQ

60%V DQG FRQVXPHU VHJPHQWV HPHUJHQFH RI WKH,7VHUYLFHVDQG%32,7H6VHJPHQWLVHVWLPDWHG
GLJLWDOWHFKQRORJ\FRQVXPHUFHQWULFVHUYLFHVQHZ WR JURZ E\ DERXW   UHDFKLQJ  PLOOLRQ LQ
EXVLQHVV DQG SULFLQJ PRGHOV WDLORUHG WR PHHW DGGLQJDURXQGHPSOR\HHVGXULQJ
VSHFLÀFQHHGVRIFXVWRPHUVDUHVRPHRIWKHIDFWRUV WKH\HDU%HLQJRQHRIWKHRUJDQL]HGSULYDWHVHFWRU
GULYLQJDGRSWLRQRI,7LQ,QGLD HPSOR\HUVLQWKHFRXQWU\WKLVVHFWRULVDOVRSOD\LQJ
DNH\UROHLQHQDEOLQJKLJKHUOHYHOVRIHPSOR\PHQWLQ
 ,7,7(6(PSOR\PHQW6FHQDULR
DGMDFHQW YHUWLFDOV OLNH WUDQVSRUWDWLRQ UHDO HVWDWH
,QGLDLVWKHVHYHQWKODUJHVWFRXQWU\LQWKHZRUOG7KH DQG KRVSLWDOLW\ 6HFXULW\ VHUYLFHV +RXVHNHHSLQJ
,7,7(6ZRUNIRUFHLVEHFRPLQJLQFUHDVLQJO\GLYHUVH HWF,QGLUHFWHPSOR\PHQWJHQHUDWHGE\WKHVHFWRULV
LQWHUPVRIVRFLRHFRQRPLFOLQJXLVWLFPXOWLQDWLRQDO HVWLPDWHGDWPLOOLRQ

'LUHFWHPSOR\PHQWLQWKH,7,7(6VHJPHQW ,Q0LOOLRQV
      (
'LUHFW(PSOR\PHQW     
1HW$GGLWLRQ     

6RXUFH1$66&20

,7,7H6%32 LQGXVWU\ SURYLGHV HPSOR\PHQW WR XQGHUJR D UDSLG FKDQJH DV GHPDQG IRU VNLOOV
SHRSOH ZLWK YDULRXV VNLOO OHYHOV LH (QJLQHHUV DURXQGGLJLWDOWHFKQRORJLHVJURZVH[SRQHQWLDOO\LQ
/DZ\HUV $UWV6FLHQFH&RPPHUFH /LWHUDWXUH HWF ZDNHRI'LJLWDO,QGLDLQLWLDWLYHRIWKHJRYHUQPHQWDV
JUDGXDWHV+LJK6FKRRO3DVVRXWVHWF7KLVVHFWRULV ZHOODVPRYLQJWRZDUGV´OHVVFDVKHFRQRP\µ$V
WKHODUJHVWHPSOR\PHQWSURYLGHURIZRPHQDQGKDV SHU 1$66&20 PDQ\ ÀUPV KDYH HVWDEOLVKHG
DERXWRILWVZRUNIRUFHFRPSULVLQJZRPHQ7KH GHGLFDWHG SURJUDPV WR UHVNLOO WKHLU H[LVWLQJ
,QGLDQ ,7,7(6 LQGXVWU\ KDV VHHQ WKH QXPEHU RI HPSOR\HHV DQG FXUUHQWO\ WKHUH DUH  VXFK
ZRPHQ HPSOR\HG LQFUHDVH WR RYHU  PLOOLRQ H[SHUWVLQ,QGLD
ZKLFK LV PRUH WKDQ D WKLUG RI WKH WRWDO ZRUNIRUFH 6RIWZDUHDVDWRROIRU(FRQRPLF*URZWK
:RPHQ FRQVWLWXWH PRUH WKDQ KDOI RI WKH FXUUHQW
HQWU\OHYHO KLUHV 2YHU WKH ODVW IHZ \HDUV WKH )RUWKHKROLVWLFJURZWKRIWKH,7LQGXVWU\DQGWRPRYH
LQGXVWU\KDVDOVREHHQDFWLYHO\SXUVXLQJLQFOXVLRQRI LW XS WKH YDOXH FKDLQ D YLEUDQW VRIWZDUH SURGXFW
SHUVRQV ZLWK GLVDELOLWLHV 3Z'V  DV ZHOO DV VHFWRU LV HVVHQWLDO +HQFH WKH QHHG IRU D
HQFRXUDJLQJDQRYHUDOOLQFOXVLYHZRUNFXOWXUH FRPSUHKHQVLYH HFRV\VWHP WR VXSSRUW D VHFWRU
SULPDULO\ FRPSULVLQJ RI \RXQJ HQWUHSUHQHXUV LV
:KLOHRI,QGLDQ,7%30LQGXVWU\SHUVRQQHODUH UHTXLUHG WKDW FDQ V\QHUJLVH WKH HIIRUWV RI WKH
HQJDJHGLVDGGUHVVLQJWKHQHHGVRIJOREDOFOLHQWV *RYHUQPHQW DQG ,QGXVWU\ WR FUHDWH D UREXVW
WKHUHVWFDWHUWRWKHGRPHVWLF,QGLDPDUNHWRI 6RIWZDUH 3URGXFW ,QGXVWU\ ZKLFK HQDEOHV WKH
WKHHPSOR\HHVDUHWHFKQLFDO HQJLQHHULQJDQGSRVW JHUPLQDWLQJ JURXQG IRU ODUJH QXPEHU RI 6RIWZDUH
JUDGXDWHV DUHVSHFLDOLVWVDQGWKHUHVWDUHQRQ SURGXFW VWDUWXSV SURPRWHV GHYHORSPHQW RI DQ
WHFKQLFDO +RZHYHU WKH VNLOOV SURÀOH LV VHW WR HFRV\VWHPHQFRXUDJLQJ5 'DQGLQQRYDWLRQRSHQ


0LQLVWU\RI(OHFWURQLFV ,QIRUPDWLRQ7HFKQRORJ\ 0HLW<

XSPXOWLWXGHRIRSSRUWXQLWLHVRIDFFHVVWRFDSLWDO 7KH 0LQLVWU\ RI (OHFWURQLFV DQG ,QIRUPDWLRQ

DQGKHOSVEXLOGDQGLPSURYHWKHGRPHVWLFGHPDQG 7HFKQRORJ\ 0HLW<  LV FRRUGLQDWLQJ VWUDWHJLF
'XULQJWKH\HDUWRSURYLGHIXUWKHULPSHWXVWR,QGLDQ DFWLYLWLHVSURPRWLQJVNLOOGHYHORSPHQWSURJUDPPHV
,7LQGXVWU\DQGPRUHYDOXHDGGLWLRQLQWKH,QGXVWU\ HQKDQFLQJLQIUDVWUXFWXUHFDSDELOLWLHVDQGVXSSRUWLQJ
ZLWK LQ WKH FRXQWU\ D GUDIW SROLF\ RQ 1DWLRQDO 5  ' IRU ,QGLD·V OHDGHUVKLS SRVLWLRQ LQ ,7 ,7(6
6RIWZDUH 3URGXFW ZDV DOVR UHOHDVHG IRU SXEOLF VHFWRU7KH,QGLDQJRYHUQPHQWLVHPSKDVLVLQJRQ
FRQVXOWDWLRQ 7KH SROLF\ LV DOVR DOLJQHG ZLWK EHWWHUWHFKQRORJ\HQDEOHGGHOLYHU\PHFKDQLVPIRUD
0DNHLQ,QGLD 'LJLWDO ,QGLD DQG 6WDUWXS ,QGLD PXOWLWXGHRIJRYHUQPHQWSURMHFWV)XUWKHUZLWKWKH
SURJUDPPH ¶'LJLWDO,QGLD·LQLWLDWLYHWKHGRPHVWLFPDUNHWIRU,7
,7(6ORRNVIRUZDUGWRDEULJKWIXWXUH

0LFURVRIW&(26DW\D1DGHOODPHHWLQJZLWK6KUL5DYL6KDQNDU3UDVDG
GLVFXVVLQJUXUDO'LJLWDO,QGLD,QLWLDWLYHV


 &+$37(5
,1129$7(
$1''(6,*1,1,1',$

&UHDWLRQRI5HVHDUFK(FR6\VWHP *RYHUQPHQWLQZKLFKLVWREHMRLQWO\VWHHUHG
DQGLPSOHPHQWHGE\0HLW<DQG'67RYHUDSHULRGRI
1DWLRQDO6XSHUFRPSXWLQJ0LVVLRQ 160
\HDUV7KHSURJUDPPHLVEHLQJLPSOHPHQWHGE\
+ L J K  3H U I R U P D Q F H  & R P S X W L Q J  + 3 &  R U &'$&DQG,,6F
6XSHUFRPSXWLQJ KDV HPHUJHG DV WKH )RXUWK
7KHPDLQREMHFWLYHVRIWKHPLVVLRQDUH
3DUDGLJP IRU FXWWLQJ HGJH 6 7 UHVHDUFK DQG
7HFKQRORJ\ DQG DFFRUGLQJO\ VSHFLDO WKUXVW KDV ‡ &UHDWLRQ RI VWDWHRIWKHDUW +3& IDFLOLWLHV DQG
EHHQ SURYLGHG WR WKH FDSDFLW\ DQG FDSDELOLW\ LQIUDVWUXFWXUHWRHQKDQFHWKHQDWLRQDOFDSDELOLW\
EXLOGLQJLQWKH6XSHUFRPSXWLQJLQWKH)LYH<HDU WR HQDEOH FXWWLQJHGJH UHVHDUFK LQ YDULRXV
3ODQ  ,QSXUVXDQFHRIWKLVREMHFWLYHWKH GRPDLQVLQVROYLQJJUDQGFKDOOHQJHSUREOHPV
1DWLRQDO6XSHUFRPSXWLQJ0LVVLRQ 160 %XLOGLQJ
‡ 'HYHORSPHQW RI +3& $SSOLFDWLRQV IRU PDMRU
&DSDFLW\  &DSDELOLW\ KDV EHHQ ODXQFKHG E\
6FLHQFHDQG(QJLQHHULQJGRPDLQV


 $QQXDO5HSRUW

‡ 3URPRWH 5HVHDUFK DQG 'HYHORSPHQW LQ +3& LPSOHPHQWDWLRQ WHDPV IRU YDULRXV DFWLYLWLHV
OHDGLQJWRQH[WJHQHUDWLRQ([DVFDOHFRPSXWLQJ SUHSDUDWLRQ RI SURMHFW SURSRVDOV RQ YDULRXV
UHDGLQHVV DSSOLFDWLRQGHYHORSPHQWVDQG5 'RQ+3&V\VWHP
F R P S R Q H Q W V  D Q G  V \ V W H P  V R I W Z D U H   2 Q
‡ +XPDQ5HVRXUFH'HYHORSPHQWWRKDQGOHDQG
UHFRPPHQGDWLRQRI7HFKQLFDO$GYLVRU\&RPPLWWHH
VSHDUKHDG+3&DFWLYLWLHVLQWKHFRXQWU\
RI 160 D GRFXPHQW KDV EHHQ SUHSDUHG RQ
,WLVSODQQHGWRHVWDEOLVKVHYHUDOVXSHUFRPSXWLQJ SURSRVHG GHVLJQ DQG SURMHFW LPSOHPHQWDWLRQ
V\VWHPV RI GLIIHUHQW FRPSXWDWLRQDO SRZHUV LQ VWUDWHJ\ FRYHULQJ SURSRVHG %XLOG DSSURDFK
YDULRXV DFDGHPLF DQG 5 ' LQVWLWXWLRQV LQ ,QGLD DFWLYLWLHV FRYHUHG XQGHU VXSHUFRPSXWLQJ
7KHVH V\VWHPV ZLOO EH GHSOR\HG XVLQJ ERWK %XLOG LQIUDVWUXFWXUH5 'DSSOLFDWLRQGHYHORSPHQWVDQG
DSSURDFK DQG %X\ DSSURDFK 0DMRU IRFXV LV RQ KXPDQ UHVRXUFH GHYHORSPHQWV $OVR SUHOLPLQDU\
%XLOGDSSURDFKWRLPSOHPHQW+3&V\VWHPVXQGHU GHVLJQ GRFXPHQW KDV EHHQ SUHSDUHG IRU YDULRXV
WKLVPLVVLRQ8QGHU%XLOGDSSURDFKLWLVHQYLVDJHG V\VWHP FRQÀJXUDWLRQV DV UHFRPPHQGHG E\
WRGHVLJQDQGPDQXIDFWXUHWKHVXEV\VWHPVRI+3& 7HFKQLFDO$GYLVRU\&RPPLWWHHRI160
V\VWHPORFDOO\LQ,QGLD
 (OHFWURQLFV'HYHORSPHQW)XQG
'XULQJWKH\HDUSUHSDUDWRU\DFWLYLWLHVVWDUWHGIRUWKH
$V SDUW RI 'LJLWDO ,QGLD ZLWK IRFXV RQ ´'HVLJQ LQ
PLVVLRQ VXFK DV LGHQWLÀFDWLRQ RI SURMHFW
,QGLDµ WKH &DELQHW KDV DSSURYHG VHWWLQJ XS RI


0LQLVWU\RI(OHFWURQLFV ,QIRUPDWLRQ7HFKQRORJ\ 0HLW<

(OHFWURQLFV 'HYHORSPHQW )XQG (')  (') LV D 7KH FLYLO ZRUN DQG LQIUDVWUXFWXUH VHW XS RI WKH
)XQG RI )XQGV DQG ZLOO SDUWLFLSDWH LQ 'DXJKWHU ,QFXEDWLRQ &HQWUH DW 6RXWK &DPSXV 'HOKL
)XQGV LQFOXGLQJ (DUO\ 6WDJH $QJHO )XQGV 8QLYHUVLW\ KDV EHHQ FRPSOHWHG WR FDWHU 
DQG 9HQWXUH )XQGV LQ WKH DUHD RI (OHFWURQLFV VWDUWXSV DW D WLPH $ IXOO WLPH &(2 KDV EHHQ
1DQRHOHFWURQLFVDQG,QIRUPDWLRQ7HFKQRORJ\7KH DSSRLQWHG IRU ORRNLQJ DIWHU WKH GD\ WR GD\
VXSSRUWHG'DXJKWHU)XQGVZLOOSURPRWHLQQRYDWLRQ R S H U D W L R Q V  R I  W K H  ( O H F W U R S U H Q H X U  3 D U N 
5 'DQGSURGXFWGHYHORSPHQWZLWKLQWKHFRXQWU\ (OHFWURSUHQHXU 3DUN KDV UHFHLYHG DURXQG 
*RYHUQPHQW KDV DSSRLQWHG &$1%$1. 9HQWXUH SURSRVDOVIURPYDULRXVUHVHDUFKHUVVWDUWXSVIRU
&DSLWDO)XQGV/WG &9&)/ DV)XQG0DQDJHURIWKH LQLWLDWLRQ RI WKHLU GHYHORSPHQWDO DFWLYLWLHV $IWHU
(OHFWURQLFV 'HYHORSPHQW )XQG 7KH (') LV QRZ HYDOXDWLRQ RI WKH SURSRVDOV  VWDUWXSV DUH RQ
UHFHLYLQJ UHTXHVWV IURP 9HQWXUH )XQGV $QJHO ERDUG DV WKH ÀUVW EDWFK RI LQFXEDWHV DQG 
)XQGVDQG6HHG)XQGVLQDUHDVRIHOHFWURQLFV,7 LQFXEDWHV ZLOO MRLQ VKRUWO\ 7KH VW LQVWDOPHQW RI
DQGQDQRHOHFWURQLFVZKLFKLQWXUQZLOOSURYLGHULVN *UDQWLQDLGRI‫&ڎ‬URUHZDVUHOHDVHGRQWK
FDSLWDO WR HOHFWURQLFV LQGXVWU\ %DVHG RQ (') -XQHDQGQGLQVWDOOPHQWRI‫ڎ‬FURUHZDV
0DQDJHPHQW%RDUG·VUHFRPPHQGDWLRQDVRQGDWH UHOHDVHGWR(OHFWURSUHQHXU3DUN LQ)HEUXDU\
0HLW< KDV DSSURYHG  'DXJKWHU )XQGV IRU ÀQDO 7KHSURMHFWZDVLQDXJXUDWHGE\+RQ·EOH0LQLVWHURI
FRPPLWPHQWRI‫&ڎ‬UZLWKWRWDOFRUSXVRI‫ڎ‬ (OHFWURQLFV DQG ,QIRUPDWLRQ 7HFKQRORJ\ RQ WK
&U0HLW<KDVDOVRDSSURYHG'DXJKWHU)XQGVIRU $XJXVW
LQSULQFLSOH FRPPLWPHQW RI  ‫&  ڎ‬U ZLWK D WRWDO
,QFXEDWLRQ &HQWUH ZLWK IRFXV RQ 0HGLFDO
FRUSXVRI‫&ڎ‬U (OHFWURQLFVDW,,73DWQD
 ,QFXEDWRUVIRU(OHFWURQLFV ,QFXEDWLRQ&HQWUHDW,,73DWQDLVEHLQJVHWXSLQMRLQW
,QFXEDWLRQ&HQWUHLQ'HOKL1&5 FROODERUDWLRQ RI ,,7 3DWQD 6WDWH *RYHUQPHQW RI
%LKDU DQG 0HLW< ZLWK WKH REMHFWLYH WR SURPRWH
0LQLVWU\KDVDSSURYHGDSURMHFWIRUVHWWLQJXSRIDQ
LQQRYDWLRQ DQG HQWUHSUHQHXUVKLS 7KH DLP RI WKH
,QFXEDWRU E\ 6RIWZDUH 7HFKQRORJ\ 3DUNV RI ,QGLD
,QFXEDWLRQ&HQWUHLVWRLGHQWLI\QXUWXUHDQGWUDQVODWH
673,  1HZ 'HOKL LQ DVVRFLDWLRQ ZLWK ,QGLD
WHFKQRORJLFDO LGHDV DQG LQQRYDWLRQ LQ WKH EURDG
(OHFWURQLFV  6HPLFRQGXFWRU $VVRFLDWLRQ ,(6$ 
DUHD RI (6'0 VHFWRU ZLWK D IRFXV LQ 0HGLFDO
DQG 'HOKL 8QLYHUVLW\ '8  ZLWK *UDQWLQDLG RI
(OHFWURQLFV 7KH RYHUDOO ÀQDQFLDO RXWOD\ RI WKH
‫ڎ‬FURUH7KH(OHFWURSUHQHXU3DUNLVEHLQJVHW
SURMHFWLV‫ڎ‬FURUHWREHIXQGHGIURP0HLW< ‫ڎ‬
LQDUHDRIRYHUVTIWFRQVWUXFWHGVSDFHZLWK
FURUH DQG*RYHUQPHQWRI%LKDU ‫ڎ‬FURUH 
VWDWH RI WKH DUW IDFLOLWLHV DW 6RXWK &DPSXV 'HOKL
DVPDWFKLQJ*UDQW7KLVLQFXEDWLRQFHQWUHLVEHLQJ
8QLYHUVLW\7KHWRWDOSURMHFWGXUDWLRQWRVHWXSWKH
VHWXSLQDUHDRIVTPHWHUVFRQVWUXFWHGVSDFH
(OHFWURSUHQHXU 3DUN LV  \HDUV 0HLW< ZLOO EH
ZLWKVWDWHRIWKHDUWIDFLOLWLHVGHVLJQDWHGIRU(6'0
SURYLGLQJWKHIXQGLQJVXSSRUWUHTXLUHGWRVHWXSDQG
LQFXEDWLRQ7KHWRWDOSURMHFWGXUDWLRQWRVHWXSWKH
PDQDJH WKH FHQWUH RYHU WKH LQLWLDO  \HDUV
,QFXEDWLRQ&HQWUHLV\HDUVZLWKWKHDLPWRLQFXEDWH
7KHUHDIWHU WKH SURMHFW ZLOO EH UXQ E\ WKH
 VWDUWXSV RYHU D SHULRG RI  \HDUV  7KH
LPSOHPHQWLQJDJHQFLHVLQDVHOIVXVWDLQLQJPRGH
LQVWDOOPHQWV RI  ‫  ڎ‬ODNK ZDV UHOHDVHG RQ WK
7KHSURMHFWZLOOVXSSRUWVWDUWXSVRYHUDSHULRGRI
<HDUV 0DUFKDQG ‫ڎ‬FURUHRQUG-XO\


 $QQXDO5HSRUW

$VRQGDWHWKH,QFXEDWLRQ&HQWUHKDVDVWUHQJWKRI )DEOHVV &KLS 'HVLJQ ,QFXEDWRU DW ,,7

H[HFXWLYHV (TXLSPHQW UHODWHG WR 3&% IDEULFDWLRQ +\GHUDEDG
IDFLOLW\KDVEHHQUHFHLYHGE\WKH,QFXEDWLRQ&HQWUH
0LQLVWU\RI(OHFWURQLFV ,7 0HLW< KDVDSSURYHGD
'XULQJWKHÀUVWFDOOIRUSURSRVDOV,QFXEDWLRQ&HQWUH
SURMHFW SURSRVDO VXEPLWWHG E\ ,,7 +\GHUDEDG IRU
KDV VHOHFWHG RQH VWDUWXS 5RER %LRQLFV  IRU WKH
VHWWLQJXSRIIDEOHVVFKLSGHVLJQLQFXEDWRUFHQWUHDW
LQFXEDWLRQ 7ZR PRUH VWDUWXSV VHOHFWHG GXULQJ
,,7+\GHUDEDGZLWKDWRWDORXWOD\RI‫ڎ‬FURUH
VHFRQGFDOOKDYHMRLQHGWKH,QFXEDWLRQ&HQWHU
LQFOXGLQJ‫ڎ‬FURUHDVDJUDQWLQDLGIURP0HLW<
(OHFWURQLFV ,QFXEDWRU E\ ,,,70.HUDOD DQG RQ WK 6HSWHPEHU  7KH FRQWULEXWLRQ RI ,,7
6WDUWXS9LOODJHDW&RFKLQ.HUDOD +\GHUDEDGLVRI‫ڎ‬FURUHIRUVHWWLQJXSRIWKH
7KHSURMHFWIRUVHWWLQJXSRI&RQVXPHU(OHFWURQLFV FKLSGHVLJQLQFXEDWRU7KHGXUDWLRQRIWKHSURMHFWLV
,QFXEDWRU DW &RFKLQ .HUDOD E\ ,QGLDQ ,QVWLWXWH RI \HDUV
,QIRUPDWLRQ 7HFKQRORJ\ DQG 0DQDJHPHQW .HUDOD
7KHREMHFWLYHRIWKHIDEOHVVFKLSGHVLJQLQFXEDWRULV
,,,70.  DQG 0V 6WDUWXS 9LOODJH KDV EHHQ
WRLQFXEDWHVWDUWXSVLQVHPLFRQGXFWRUGHVLJQ7KH
DSSURYHG RQ WK $SULO  7RWDO RXWOD\ RI WKH
YLVLRQ LV WR SURYLGH RQHVWRS VHUYLFH WR VWDUWXSV
SURMHFW LV ‫ ڎ‬FURUH DQG 0HLW< *UDQW,Q$LG LV
LQWHQGLQJ WR HQWHU WKLV VSDFH 7KLV ,QFXEDWRU ZLOO
‫ڎ‬FURUH7KHVWLQVWDOPHQWRI‫ڎ‬FURUHZDV LQFXEDWHVWDUWXSVRYHUDSHULRGRI\HDUV,QWKLV
UHOHDVHGRQWK-XQH7KHPDLQREMHFWLYHVRI UHJDUG 0HPRUDQGXP RI 8QGHUVWDQGLQJ 0R8 
WKH (OHFWURQLFV ,QFXEDWRU LV FUHDWLRQ RI QHZ EHWZHHQ0HLW<DQG,,7+\GHUDEDGIRUXQGHUWDNLQJ
HQWHUSULVHV IRFXVHG RQ &RQVXPHU (OHFWURQLFV WKHSURMHFWE\,,7+\GHUDEDGKDVEHHQVLJQHGRQ
SURYLGLQJ HQWUHSUHQHXUV DFFHVV WR LQIUDVWUXFWXUH  7KH ÀUVW LQVWDOPHQW RI *UDQWLQ$LG
WKDWIDFLOLWDWHVPDQXIDFWXUHRIHOHFWURQLFKDUGZDUH DPRXQWLQJ ‫ ڎ‬FURUHV KDV EHHQ DSSURYHG RQ
LQ D FRVW HIIHFWLYH DQG VRSKLVWLFDWHG PDQQHU DQG‫ڎ‬/DNKVKDYHEHHQUHOHDVHGRQ
SURYLGLQJPHQWRUVKLSWRPLWLJDWHWKHULVNWKDWVWDUW
DVSDUWLDOLQVWDOPHQW
XSVIDFHZKLOHPDQXIDFWXULQJHOHFWURQLFVKDUGZDUH
EULGJH WKH WLPH GHOD\ WDNHQ WR DEVRUE QHZ 5 'DQG,3GHYHORSPHQW
WHFKQRORJLHV HWF 7KLV ,QFXEDWRU ZLOO LQFXEDWH   &RPPHUFLDOL]DWLRQ DQG 'HSOR\PHQW RI
6WDUWXSVRYHUDSHULRGRI\HDUV,QIUDVWUXFWXUHVHW 7$5$1*'LJLWDO3URJUDPPDEOH+HDULQJ$LG
XS RI WKH LQFXEDWRU FHQWUH KDV EHHQ FRPSOHWHG
&  ' $ &  K D V  G H Y H O R S H G  7D U D Q J    ' L J L W D O
ZKLOHRWKHUDPHQLWLHVDUHLQSURJUHVV7KHWHVWLQJ
3URJUDPPDEOH+HDULQJ$LG '3+$ DIHDWXUHULFK
DQG HTXLSPHQW  ,27 ODE URERWLFV /DE DQG
DIIRUGDEOH DQG HDVLO\ PDLQWDLQDEOH GLJLWDO
SURWRW\SLQJURRPIRU607DVVHPEO\OLQHKDVEHHQ
SURJUDPPDEOHKHDULQJDLG,WXVHVDGYDQFHGGLJLWDO
LQVWDOOHGLQWKHFHQWUH6WDWHRIWKHDUWIDFLOLW\ZLWK
VLJQDO SURFHVVLQJ WHFKQLTXHV DQG LV EDVHG RQ
ZRUNVWDWLRQV FRQIHUHQFH URRPV DQG IXOO\
LQGLJHQRXVO\ GHYHORSHG DSSOLFDWLRQ VSHFLÀF
RSHUDWLRQDO5) SRZHU/DEKDYHEHHQHVWDEOLVKHG
LQWHJUDWHG FLUFXLW NQRZQ DV 1$$'$ 7UDQVIHU RI
LQ$SULO2QHLQFXEDWHKDVDOUHDG\MRLQHGLQWKH
7HFKQRORJ\ 7R7 RIWKHDERYHVROXWLRQZDVFDUULHGWR
FHQWUHDQGLQFXEDWHVDUHH[SHFWHGWREHRQERDUG
LQGXVWU\SDUWQHUV0V.(/75217KLUXYDQDQWKDSXUDP
VKRUWO\
DQG0V%HVW+HDULQJ6ROXWLRQ1HZ'HOKL&'$&
KDV VXSSOLHG 7DUDQJ XQGHU YDULRXV JRYHUQPHQW


0LQLVWU\RI(OHFWURQLFV ,QIRUPDWLRQ7HFKQRORJ\ 0HLW<

VFKHPHV LQFOXGLQJ 5DMLY 9LG\D 0LVVLRQ 66$  UHVHDUFK SDSHUV KDYH EHHQ SXEOLVKHG LQ
$',36FKHPH $VVLVWDQFHWR'LVDEOHG3HUVRQVIRU 1DWLRQDO DQG ,QWHUQDWLRQDO MRXUQDOV XQGHU
3XUFKDVH)LWWLQJRI$LGV$SSOLDQFHV'HSDUWPHQWRI 1DQRWHFKQRORJ\DUHD
(PSRZHUPHQW RI 3HUVRQV ZLWK 'LVDELOLWLHV  DQG
 3HUFHSWLRQ(QJLQHHULQJ,QLWLDWLYHV
5%6.6FKHPH 5DVKWUL\D%DO6ZDVWK\D.DU\DNUDP
1DWLRQDO+HDOWK0LVVLRQ0LQLVWU\RI+HDOWK )DPLO\ %UDLQ0DFKLQH,QWHUIDFH6\VWHPV %0,6 
:HOIDUH*RYWRI,QGLD  %UDLQPDFKLQH LQWHUIDFHV DUH EHLQJ GHYHORSHG WR
 ,3 GHYHORSPHQW XQGHU YDULRXV 5 ' DVVLVW SDUDO\]HG SDWLHQWV E\ HQDEOLQJ WKHP WR
3URJUDPV RSHUDWH PDFKLQHV ZLWK UHFRUGLQJV RI WKHLU RZQ
QHXUDODFWLYLW\ $W,,7'HOKLGHYHORSPHQWRIEUDLQ
L  (OHFWURQLFV 0DWHULDOV DQG &RPSRQHQW
PDFKLQH LQWHUIDFH LV EHLQJ XQGHUWDNHQ IRU  EUDLQ
'HYHORSPHQW3URJUDP
GLUHFWHG FRQWURO RI LQWHUIDFLQJ GHYLFHV LQFOXGLQJ
(0&' KDV ÀOHG D WRWDO RI  SDWHQWV LQFOXGLQJ URERWLF PDQLSXODWRUV DOJRULWKPV DQG HPEHGGHG
QDWLRQDODQGLQWHUQDWLRQDODSSOLFDWLRQVVLQFH V\VWHP  )LUVW 3URWRW\SH RI '2) $UWLFXODWHG DUP
7KLV \HDU WKH WDOO\ LV ÀYH QHZ DSSOLFDWLRQV DQG LQ KDVEHHQGHVLJQHGDQGUHDOL]HG
DGGLWLRQLQWHUQDWLRQDODSSOLFDWLRQVKDYHEHHQÀOHG
IRU SUHYLRXV \HDU·V QDWLRQDO OHYHO SDWHQW
DSSOLFDWLRQV 3DWHQWV ZHUH ÀOHG LQ WKH DUHDV RI
EUHDVWFDQFHUGHWHFWLRQFRVWHIIHFWLYHSURFHVVIRU
SURGXFWLRQ RI SVHXGRERHKPLWH SLH]RUHVLVWRU
FRPSRVLWLRQVIRUÁH[LEOHVXEVWUDWHVDQGOHDGIUHH
JODVVDVPLFURZDYHPDWHULDO X/7&& 

%UDLQ &RPSXWHU ,QWHUIDFH %&,  GLUHFWO\ PHDVXUHV

EUDLQ DFWLYLWLHV GRHV VLJQDO SURFHVVLQJ DQG
WUDQVODWHV XVHU·V LQWHQW LQWR WKH FRUUHVSRQGLQJ
VLJQDOV IRU DSSOLFDWLRQ 6XFK V\VWHPV DUH
SDUWLFXODUO\ XVHIXO IRU SHRSOH ZLWK VHYHUH PRWRU
GLVDELOLWLHVDQGZKRDUHLQ·/RFNHGLQVWDWH·
'HYHORSLQJ 1RYHO %LRPDUNHU IRU $O]KHLPHU·V
'LVHDVH $'  1DWLRQDO %UDLQ 5HVHDUFK &HQWHU
LL  )LYHSDWHQWV ,QGLDQ KDYHEHHQÀOHGLQWKH\HDU
0DQHVDU KDV GHYHORSHG D UHOLDEOH ELRPDUNHUV IRU
 DQG WKLUWHHQ 3DSHUV KDYH EHHQ
$O]KHLPHU'LVHDVH $' WKDWDOORZHDUO\GHWHFWLRQRI
SXEOLVKHGLQ-RXUQDOVFRQIHUHQFHSURFHHGLQJV
$O]KHLPHU VR WKDW LWPD\EHFXUHG DUUHVWHG DW DQ
LQWKHPLFURHOHFWURQLFVDUHD
HDUO\VWDJH'LIIHUHQWVWDJHVRIFRJQLWLYHLPSDLUPHQW
LLL (OHYHQSDWHQWV ,QWHUQDWLRQDO,QGLDQ KDYHEHHQ FDQEHJLYHQDV
ÀOHGLQWKH\HDUZKHUHDVPRUHWKDQ


 $QQXDO5HSRUW

1RGLVHDVH¬ 1HXURFKHPLFDO&KDQJHVLQ%UDLQ XVLQJ0DJQHWLF5HVRQDQFH6SHFWURVFRS\

¬   0LOG 0HPRU\ /RVV  ¬   6HYHUH &RJQLWLYH
  &RJQLWLYH SHUIRUPDQFH RI WKH VXEMHFW LV
,PSDLUPHQW $'
PHDVXUHGXVLQJ1HXURSK\VLRORJLFDOHYDOXDWLRQ
6WXGLHV KDYH VKRZQ WKDW $' LV DVVRFLDWHG ZLWK
  6WDWLVWLFDO DQDO\VLV LV SHUIRUPHG WR DFFHVV
UHGXFWLRQ LQ %UDLQ $QWLR[LGDQW OHYHOV *OXWDWKLRQH
ZKHWKHUDQWLR[LGDQWOHYHOFDQGLDJQRVH0&,RU
*6+ ZKLFKLVDQHVVHQWLDOEUDLQDQWLR[LGDQW
$'
  %UDLQ *OXWDWKLRQH *6+  OHYHO LV PHDVXUHG

$'EUDLQ 1RUPDOEUDLQ


0LQLVWU\RI(OHFWURQLFV ,QIRUPDWLRQ7HFKQRORJ\ 0HLW<

1RYHO %LRPDUNHU GHVLJQHG DV HVWLPDWLRQ RI WKH GHVSLWHDODFNRIDXGLWRU\IHHGEDFN

EUDLQ DQWLR[LGDQW *6+ ZLWK 056 LV FUXFLDO
:KLOH WKH LQYROYHPHQW RI D VSHHFK WKHUDSLVW LV
QRQLQYDVLYHPHDVXUHRI0&,RQVHWDQGSURJUHVVLRQ
FUXFLDO IRU VSHHFK DFTXLVLWLRQ FRPSXWHU EDVHG
WR $' DQG KDV WUHPHQGRXV SRWHQWLDO DV D FOLQLFDO
VSHHFKWUDLQLQJ &%67 V\VWHPVKDYHEHHQIRXQG
ELRPDUNHU ZLWK KLJK GLDJQRVWLF DFFXUDF\ IRU 0&,
WR PRWLYDWH FKLOGUHQ LQ SUDFWLFLQJ E\ SURYLGLQJ
DQG$'
IHHGEDFNRIWKHLUSURJUHVV
'HYHORSPHQW RI 6HULRXV *DPHV IRU SK\VLFDO DQG
$VRIWZDUHDV9RFDO7UDFW'LVSOD\LVGHYHORSHGDW
QHXURKDEWKHUDS\IRUVWURNHLQMXU\DUWKULWLVSDWLHQWV
6 3 ,  / D E   , , 7  % R P E D \  Z K L F K  P D N H  G L U H F W
,,,7+\GHUDEDG 6HULRXV*DPHVIRUSK\VLFDODQG
YLVXDOL]DWLRQV IRU YRFDO WUDFW VKDSH ZLWK VSHHFK
Q H X U R K D E  W K H U D S \  D U H  G H Y L V H G  I R U
VLJQDO7KHV\VWHPLQFRUSRUDWHVDOLQHDUSUHGLFWLYH
VWURNHLQMXU\DUWKULWLVSDWLHQWVZKLFKFDQEHXVHGDV
FRGLQJ /3& EDVHGPHWKRGE\:DNLWDWRHVWLPDWH
DQ DOWHUQDWLYH WR WUDGLWLRQDO SK\VLRWKHUDS\
WKHYRFDOWUDFWIURPWKHVSHHFKVLJQDO
H[HUFLVHV 7KH6HULRXV*DPHVVRGHYHORSHGXVH
ELRIHHGEDFN FRQWURO V\VWHP WR SURYLGH DQ  & R Q Y H U J H Q F H   & R P P X Q L F D W L R Q V  
LPPHUVLYH YLUWXDO HQYLURQPHQW IRU WKHUDS\ 7KH %URDGEDQG 7HFKQRORJLHV DQG $OWHUQDWH
UHFRUGLQJRIWKHH[HUFLVHPRYHPHQWVFROOHFWHGE\ 7HFKQRORJLHVIRU&RQQHFWLYLW\5 'LQLWLDWLYHVLQ
VHQVRUV LV SURYLGHG WR WKH GRFWRUVWKHUDSLVWV FR &RQYHUJHQFH &RPPXQLFDWLRQV %URDGEDQG
ORFDWHGRULQUHPRWHORFDWLRQV 7HFKQRORJLHV 6WUDWHJLF (OHFWURQLFV DQG $OWHUQDWH
7HFKQRORJLHV IRU &RQQHFWLYLW\ DUH DLPHG DW
$ JDPH LV GHVLJQHG IRU VWURNHKDQG DUWKULWLV
GHYHORSLQJ LQGLJHQRXV FDSDELOLW\ LQ WKH WKUXVW
SDWLHQWV IRU VHQVRULPHWHU VLPXODWLRQ RQ KDQGDUP
D U H D V   Z K L F K  L Q F O X G H    1 H [ W  * H Q H U D W L R Q
IXQFWLRQV ZKHUHLQ YLUWXDO GURSSLQJ REMHFWV LH
&RPPXQLFDWLRQ  &RQYHUJHQFH WHFKQRORJLHV
DSSOHVDUHFROOHFWHGLQDYLUWXDOEDVNHWDQGE\YLVXDO
6RIWZDUH'HÀQHG5DGLR&HOOXODU&RJQLWLYH5DGLR
LOOXVLRQPRYHPHQWLVFDXVHGLQDIIHFWHGKDQG7KLV
LQFOXGLQJ ZKLWH VSDFHV +HWHURJHQHRXV :LUHOHVV
FDXVHVKDQGH[HUFLVHDQGLVKHOSIXOIRUVWURNHKDQG
1HWZRUNV *UHHQ&RPPXQLFDWLRQDQG6FDYHQJLQJ
DUWKULWLVSDWLHQWV
HQHUJ\IURPDPELHQW(0UDGLDWLRQ&\EHU3K\VLFDO
´9LVXDO 6SHHFK 7UDLQLQJ 6RIWZDUH IRU WKH +HDULQJ 6\VWHPV ,QWHUQHW RI 7KLQJV ,27   0DFKLQH WR
,PSDLUHGµ 0DFKLQH 00  :LUHOHVV 6HQVRU 1HWZRUNV
&RQYHUJHQFHRIZLUHGZLUHOHVVQHWZRUNVDQGÀ[HG
+HDULQJORVV +/ DQGGHDIQHVVDUHJOREDOLVVXHV
PRELOHFRQYHUJHQFH,&7DSSOLFDWLRQVLQVWUDWHJLF
ZKLFKDIIHFWDWOHDVWPLOOLRQSHUVRQVZRUOGZLGH
VHFWRU%URDGEDQG:LUHOHVV$FFHVV7HFKQRORJLHV
DQGWZRWKLUGVRIWKHPOLYHLQGHYHORSLQJFRXQWULHV
IRUODVWPLOHDFFHVV9LVLEOH/LJKW&RPPXQLFDWLRQ
,Q ,QGLD SHUVRQV XVLQJ KHDULQJ DLGV KDYH EHHQ
9/&  9HKLFXODU DGKRF 1HWZRUNV 9$1(7 
WUHDWHG DV SHUVRQV ZLWK GLVDELOLW\ 3Z'  LQ WKH
0DVVLYH 0,02 IRU 1H[W *HQHUDWLRQ :LUHOHVV
&HQVXV  DQG WKHLU QXPEHU LV 
V \ V W H P V   ' H Y H O R S P H Q W  R I  , 3  E D V H G
 PDOHV  IHPDOHV    )RU WKH
SURGXFWVVHUYLFHV *UHHQ &RPPXQLFDWLRQ
FKLOGUHQZLWKKHDULQJGLVDELOLW\WRDFTXLUHVSHHFK
:LUHOHVV 7HFKQRORJ\ GHSOR\PHQWV IRU UXUDO
WKHUH LV D QHHG WR SURYLGH D YLVXDO IHHGEDFN RI
FRQQHFWLYLW\ /7($ :L)L :L0D[  ,3 EDVHG
DUWLFXODWRU\HIIRUWVLQYROYHGLQVSHHFKSURGXFWLRQWR
SURGXFWVVHUYLFHV /RZ&RVW%URDGEDQG,QWHUQHW
DVVLVW LQ WKH DFTXLVLWLRQ RI VSHHFK DQG ODQJXDJH
D F F H V V  G H Y L F H V   ( O H F W U R  P D J Q H W L F  Z D Y H


 $QQXDO5HSRUW

D S S O L F D W L R Q V   + L J K  S R Z H U  5 )  P L F U R Z D Y H PLQHVKDVEHHQGHYHORSHG7KHWHFKQRORJLHVKDYH
WHFKQRORJLHV 0LFURZDYH  0LOOLPHWHU ZDYH EHHQ SDWHQWHG LQ ,QGLD $ :61 EDVHG 5HDO 7LPH
6HQVRUV  6\VWHPV 7HUDKHUW] 7+]  ZLUHOHVV :DWHU TXDOLW\ PRQLWRULQJ V\VWHP KDV DOVR EHHQ
V\VWHPV5DGDUV\VWHPVGHYHORSPHQWRI6WUDWHJLF GHYHORSHG
& R P S R Q H Q W V   $ O W H U Q D W H  7H F K Q R O R J L H V  I R U
7KH RQJRLQJ SURMHFWV VXSSRUWHG LQ WKH LGHQWLÀHG
&RQQHFWLYLW\HWF
WKUXVW DUHDV LQFOXGH  ,QQRYDWLRQ KXE RQ &\EHU
$FKLHYHPHQWV 3K\VLFDO 6\VWHPV 'XDO &RQQHFWLYLW\ /7( :LÀ
6ROXWLRQ IRU %URDGEDQG :LUHOHVV 1HWZRUNV 6HOI
$ QXPEHU RI WHFKQRORJ\ GHYHORSPHQW SURMHFWV
3RZHUHG ZLUHOHVV FKLSVHW IRU EXLOGLQJWREXLOGLQJ
VXSSRUWHGDWYDULRXVLQVWLWXWLRQVDFURVVWKHFRXQWU\
FRPPXQLFDWLRQ (QHUJ\ HIÀFLHQW UDGLR DFFHVV
LQ WKH WKUXVW DUHDV ZHUH VXFFHVVIXOO\ FRPSOHWHG
WHFKQRORJLHVIRU*/7('HFLVLRQ6XSSRUW6\VWHP
GXULQJ  ,QLWLDWLYHV LQ 1H[W *HQHUDWLRQ
IRU LQWHJUDWHG K\GUR JHRORJLFDO PRGHOOLQJ /RZ
&RPPXQLFDWLRQV DQG &RQYHUJHQFH KDYH \LHOGHG
3RZHU7HUDELWIRU%URDGEDQG&RPPXQLFDWLRQ/LQNV
QRWDEOH DFKLHYHPHQWV LQ WKH \HDU ZKLFK LQFOXGH
&RQYHUJHG &ORXG &RPPXQLFDWLRQ WHFKQRORJLHV
WUDQVIHU RI /7( EDVHG GHVLJQV DQG %URDGEDQG
6PDOO &HOO :L)L 1HWZRUNV IRU WKH HQWHUSULVH
6LPXODWRU %:6,0  WHFKQRORJ\ GHYHORSHG XQGHU
'LVWULEXWHG%D\HVLDQOHDUQLQJIRU%LJ'DWD0RELOH
WKH SURMHFW 1H[W *HQHUDWLRQ * $GYDQFHG 
$G +RF 1HWZRUNV $XWRQRPLF (QHUJ\ $ZDUH
:LUHOHVV7HFKQRORJ\5HVHDUFKE\&(:L7&KHQQDL
0 D Q D J H P H Q W  R I  1 H W Z R U N   & O R X G   4 R 6
WRLQGXVWU\/DVW\HDU´*5HVHDUFKDQG%XLOGLQJ
3URYLVLRQLQJLQ,QWHUQHWRI7KLQJV ,R7 6DIHW\$OHUW
1H[W *HQ 6ROXWLRQVµ SURMHFW ZDV LQLWLDWHG ZLWK D
6 \ V W H P  X V L Q J  G H G L F D W H G  6 K R U W  5 D Q J H
FRQVRUWLXP RI SUHPLHU DFDGHPLD LQVWLWXWLRQV
&RPPXQLFDWLRQ)HDVLELOLW\DVVHVVPHQWPRGHOIRU
FROODERUDWLQJWRXQGHUWDNHDGYDQFHGUHVHDUFKIRU
DGDSWDWLRQ RI XQGHUJURXQG FRDO JDVLÀFDWLRQ
* DQG GHYHORS DGYDQFHG VLPXODWLRQ DQG
WHFKQRORJ\HWF
WHFKQRORJ\ SURWRW\SHV IRU *  SDWHQWV KDYH
DOUHDG\ EHHQ ÀOHG LQ WKH SURMHFWV ZKLFK LQFOXGH 8QGHU ,QGR'XWFK FROODERUDWLRQ IRU FROODERUDWLYH
ERWKQDWLRQDODQGLQWHUQDWLRQDOSDWHQWV7KHSURMHFW UHVHDUFK LQ 3HUYDVLYH &RPPXQLFDWLRQV 
ZLOO FRQWULEXWH WRZDUGV * VWDQGDUGL]DWLRQ FRPSXWLQJ  SURMHFWV KDYH EHHQ LQLWLDWHG &RGH
S D U W L F X O D U O \  D G G U H V V L Q J  W K H  D V S H F W V  R I VHOIYHULÀFDWLRQ IRU ,R7 GHYLFHV %LJ LPDJLQJ GDWD
KHWHURJHQHRXV QHWZRUNV GLVWULEXWHG FRQQHFWLYLW\ DSSURDFKIRU2QFRORJ\'DWDPLQLQJ SUHGLFWLRQLQ
DQGFRPSXWLQJ DLUOLQHVRSHUDWLRQVDQGSULYDF\DZDUHVPDUWSXEOLF
EXLOGLQJV
1RWDEOHDFKLHYHPHQWVLQ,R7EDVHGSURMHFWVGXULQJ
 KDYH \LHOGHG  WUDQVIRUPLQJ V\VWHPV WR 7KH SURPRWLRQ RI 5 ' LQ WKH DUHD RI DSSOLHG
6PDUW6\VWHPVLQYDULRXVGRPDLQVZKLFKLQFOXGH PLFURZDYH HOHFWURQLFV  HQJLQHHULQJ LV EHLQJ
6DIH 0LQLQJ 6WUDWD  *DV PRQLWRULQJ 6\VWHPV LQ IXUWKHU VWUHQJWKHQHG E\ HVWDEOLVKLQJ WZR QHZ
PLQHV:DWHU4XDOLW\PRQLWRULQJXVLQJ:61HWF$ FHQWUHV RI 6$0((5 1HZ FHQWUH DW ,,7 *XZDKDWL
WUDFNLQJ 6\VWHP IRU FRQWUROOLQJ LOOHJDO PLQLQJ DQG VSHFLDOL]LQJ LQ KLJK SRZHU PLFURZDYH WXEHV
FRDO WUDQVSRUWDWLRQ KDV EHHQ GHYHORSHG 7ZR FRPSRQHQWVKDVEHHQHVWDEOLVKHGLQFROODERUDWLRQ
SDWHQWVIRUWKHWHFKQRORJLHVKDYHEHHQÀOHGLQ,QGLD ZLWK,,7*XZDKDWL7KH&HQWUHZLOOIRFXVRQ5 'RI
$QRWKHU V\VWHP IRU WHPSHUDWXUH KXPLGLW\ DQG  0: PDJQHWURQ DW  *+] GHVLJQ DQG
PHWKDQHJDVFRQFHQWUDWLRQPRQLWRULQJV\VWHPIRU GHYHORSPHQWRIN:FLUFXODWRUDW*+]DQG


0LQLVWU\RI(OHFWURQLFV ,QIRUPDWLRQ7HFKQRORJ\ 0HLW<

N:5)ORDGDW*+]$QRWKHUQHZ&HQWUHIRU 'HVNWRS6HUYHUDQGHGXFDWLRQDOYDULDQW(GX%266
(OHFWURPDJQHWLF (QYLURQPHQWDO (IIHFWV (  KDV DUHUHOHDVHGXQGHU*3/OLFHQVHDQGDUHDYDLODEOH
EHHQ HVWDEOLVKHG DW 9LVDNKDSDWQDP IRU KLJKO\ IRU IUHH GRZQORDGV IURP KWWS ERVVOLQX[LQ 3DQ
VSHFLDOL]HGVWDWHRIWKHDUW(0,(0&WHVWIDFLOLWLHV ,QGLD 6XSSRUW &HQWUHV KDYH EHHQ HVWDEOLVKHG IRU
LQFOXGLQJ(OHFWURPDJQHWLF3XOVH (03 DQG3XOVH KDQGKROGLQJ VXSSRUW WR XVHUV 5HVHDUFK 
&XUUHQW ,QMHFWLRQ 3&,  VHW XS WR PHHW WKH GHYHORSPHQW RI VHFXUHG VHUYLFHRULHQWHG
UHTXLUHPHQWVDVSHU,QWHUQDWLRQDO(0&6WDQGDUGV FRPSRQHQWEDVHGRSHUDWLQJV\VWHPDQGPXOWLFRUH
675DGDU1DWLRQDOIDFLOLW\DW*XZDKDWLIRU1(6WDWHV DUFKLWHFWXUDO VLPXODWRU DUH DOVR EHLQJ DGGUHVVHG
LVEHLQJHVWDEOLVKHG7KHLQGLJHQRXVGHYHORSPHQW 'HYHORSPHQWRI%2660RRO'KDUDDQG%KDUWL6LP
RI675DGDUZLOOKHOSLQUHVHDUFKDQGPRQLWRULQJRI DUHQRWDEOHRXWFRPHRIWKHVHHIIRUWV)RUSURPRWLRQ
WKH ZHDWKHU SDWWHUQV DQG FOLPDWLF FRQGLWLRQV RIXVDJHRI)2660HLW<KDVEURXJKWRXWD3ROLF\RQ
SDUWLFXODUO\LQ1(UHJLRQZKLFKFKDQJHUDSLGO\ $GRSWLRQRI2SHQ6RXUFH6RIWZDUHIRU*RYHUQPHQW
RI,QGLD
$OWHUQDWH7HFKQRORJLHVIRU&RQQHFWLYLW\8QGHU
%KDUDW 1HW  1DWLRQDO 2SWLFDO )LEUH 1HWZRUN L 6HOIDZDUH 6HUYLFHRULHQWHG &RPSRQHQW
12)1  LW LV SURSRVHG WR OLQN  ODNK *UDP EDVHG2SHUDWLQJ6\VWHP
3DQFKD\DWV RI WKH FRXQWU\ WKURXJK %URDGEDQG
 7KHQHZ&RPSRQHQWEDVHG2SHUDWLQJ6\VWHP
2SWLFDO )LEUH 1HWZRUN 2SWLFDO )LEUH 1HWZRUN LV
´'+$5$µKDVEHHQGHYHORSHG7KLVLVDFKLHYHG
EHLQJVHWXSLQSKDVHV7KHUHLVWKHUHIRUHDQHHG
WKURXJKUHGHVLJQRI.HUQHOLQVHUYLFHRULHQWHG
IRU DOWHUQDWH WHFKQRORJLHV WR FRQQHFW *UDP
DUFKLWHFWXUH ZLWK GLIIHUHQW VXEV\VWHPV DQG
3DQFKD\DWV 7KH DOWHUQDWH WHFKQRORJLHV LQFOXGH 
PRGXOHVGHVLJQHGDVFROOHFWLRQRIVHUYLFHVWR
5) ZLUHOHVV FRQQHFWLYLW\ &RQQHFWLYLW\ XVLQJ 79
RSWLPL]HSURFHVVHVH[HFXWLRQWLPHRQPXOWLFRUH
:KLWH 6SDFH &RQQHFWLYLW\ XVLQJ &DEOH 1HWZRUN
HQYLURQPHQW7KHNHUQHOLVH[SHFWHGWRRSWLPL]H
%URDGEDQG RYHU SRZHU OLQHV &RQQHFWLYLW\ XVLQJ
WKHH[HFXWLRQWLPHE\WRRQPXOWLFRUH
96$7 HWF  &RQYHUJHQFH &RPPXQLFDWLRQV 
V\VWHPV E\ VFKHGXOLQJ WKH SURFHVVHV RQ
%URDGEDQG 7HFKQRORJLHV *URXS KDG HDUOLHU
GLIIHUHQW FRUHV HIÀFLHQWO\ 3LJJ\EDFNLQJ WKH
LPSOHPHQWHG SURMHFWV LQ WKH DUHD RI DOWHUQDWH
UHDGODWHQF\WRUHVRXUFH0DQDJHUFXVWRPL]LQJ
FRQQHFWLYLW\  79 :KLWH 6SDFH WULDOV E\ ,,7
+DGRRS %ORFN 3ODFHPHQW 6WUDWHJ\ DQG
+ \ G H U D E D G   , , 7  ' H O K L  D Q G  % U R D G E D Q G
,QWHJUDWLRQRIFXVWRPL]HGSROLF\ZLWK'KDUDKDV
FRPPXQLFDWLRQ WKURXJK XQGHUJURXQG DQG
EHHQFDUULHGRXW
RYHUKHDGSRZHUOLQHVE\%HQJDO(QJLQHHULQJDQG
6FLHQFH8QLYHUVLW\3URMHFWVDUHEHLQJHYROYHGLQWKH LL ,Q%266022/ 0LQLPDOLVWLF2EMHFW2ULHQWHG
HPHUJLQJDOWHUQDWHWHFKQRORJLHVOLNH/LJKW)LGHOLW\ /LQX[ SURMHFW
/L)L   7KHH[LVWLQJ/LQX[NHUQHOKDVEHHQUHGHVLJQHG
)UHH 2SHQ6RXUFH6RIWZDUH )266 WR SURYLGH 2EMHFW 2ULHQWHG DEVWUDFWLRQV RI
YDULRXVVXEV\VWHPVRIWKHNHUQHO HJ,QWHUUXSW
0HLW< KDV EHHQ SURPRWLQJ DQG IRVWHULQJ WKH
+DQGOHU.HUQHO0HPRU\0DQDJHUHWF 022/
DGRSWLRQ RI )266 LQFOXGLQJ GHYHORSPHQW RI
DFKLHYHVWKLVE\SURYLGLQJ22ZUDSSHUVIRUWKH
LQGLJHQRXV 2SHUDWLQJ 6\VWHP GLVWULEXWLRQ %266
FRUHNHUQHOLQ&7KH022/NHUQHOKDVEHHQ
ZLWK  ,QGLDQ ODQJXDJHV VXSSRUW DQG LWV ZLGH
PDGH UHDOWLPH 57  FDSDEOH $ GLVWDQFH
GHSOR\PHQW LQ YDULRXV RUJDQL]DWLRQV %266


 $QQXDO5HSRUW

OHDUQLQJ SURJUDP LV GHVLJQHG RQ 'DWDEDVH  0DKDUDVKWUD %266 GHSOR\PHQWV KDYH
%266022/7KHFRXUVHLVDLPHGWRSURYLGHD UHVXOWHGLQLQGLUHFWVDYLQJVRIRYHUFURUHE\
UHDOWLPHH[SRVXUHWRWKHVWXGHQWVRQ'DWDEDVH QRWXVLQJSURSULHWDU\VRIWZDUH
DQG 022/ NHUQHO 6(76 /DE &KHQQDL KDYH
LY % K D U W L  6 L P    $ Q  $ G Y D Q F H G  0 L F U R 
SRUWHG WKH ,QWHJUDWHG 7KUHDW 0DQDJHPHQW
DUFKLWHFWXUDO6LPXODWRU
$SSOLFDWLRQ RQ %266022/ (&,/ ZLOO EH
WDNLQJXSWKHSURGXFWLRQRIWKLVDQGXVH%266  %KDUWL6LP UHQDPHG DV 7HMDV  KDV EHHQ
022/LQWKHLUSURGXFW &'$&KDVVLJQHGDQ GHYHORSHGDW,,7'HOKLDVDKLJKO\FRQÀJXUDEOH
028 ZLWK )XMLWVX IRU EXQGOLQJ %266 022/ VLPXODWRU ZLWK VLPSOH ([WHQVLEOH 0DUNXS
RSHUDWLQJV\VWHPLQODSWRSV'HVNWRSV6HUYHUV /DQJXDJH ;0/ LQWHUIDFH7KHVDOLHQWIHDWXUHV
WR EH GHSOR\HG DFURVV WKH FRXQWU\ LQ DOO RIWKHVLPXODWRUDUHSDUDOOHOH[HFXWLRQVXSSRUW
JRYHUQPHQW GHSDUWPHQWV DQG HGXFDWLRQDO IRU PXOWLSOH HPXODWRUV WUDQVDFWLRQDO PHPRU\
LQVWLWXWLRQVIRUWKHLUSURGXFWLYLW\DQGWKH\KDYH DFFHOHUDWRUVDQG1HWZRUNRQ&KLS 1R& 7KLV
VWDUWHGVHOOLQJV\VWHPVZLWKSUHORDGHG%266 VLPXODWRUKDVEHHQUHOHDVHGRQWKHZHEZLWKDQ
022/ RSHQ VRXUFH $SDFKH  OLFHQVH ,W LV QRZ IXOO\
IXQFWLRQDO DQG KDV EHHQ XVHG WR SXEOLVK
LLL%2663UROLIHUDWLRQ $GRSWLRQ'HYHORSPHQW
QXPHURXV UHVHDUFK SDSHUV LQ WKH DUHDV RI
RI%266
FRPSXWHUDUFKLWHFWXUHDQGFRPSLOHUGHVLJQZLWK
 7KHLQGLJHQRXV/LQX[EDVHG2SHUDWLQJ6\VWHP ELWDQGELWDUFKLWHFWXUHVVXSSRUWHG7KH
GLVWULEXWLRQZLWK,QGLDQODQJXDJHVVXSSRUWLVD VLPXODWRUKDVEHHQLQWHJUDWHGLQWRWKHWHDFKLQJ
VLJQLÀFDQW PLOHVWRQH RI 1DWLRQDO 5HVRXUFH FXUULFXODRIYDULRXVXQLYHUVLWLHVZRUOGZLGHDQG
&HQWUH IRU )UHH  2SHQ 6RXUFH 6RIWZDUH KDV EHHQ GRZQORDGHG E\ XVHUV IURP 
15&)266  KWWSERVVOLQX[LQ %266 KDV FRXQWULHVZLWKGRZQORDGV$W,,7'HOKL7HMDV
EHHQ ZLGHO\ GHSOR\HG LQ HGXFDWLRQ DQG LV EHLQJ XVHG WR WHDFK ´$UFKLWHFWXUH RI KLJK
JRYHUQPHQW VHFWRUV LQ YDULRXV 6WDWHV 87V SHUIRUPDQFH FRPSXWHUVµ DQG WR FRQGXFW
DFURVV WKH FRXQWU\ ,QGLDQ 1DY\  $UP\ KDYH H[SHULPHQWV LQ D  VWXGHQW FRXUVH RQ
DGRSWHG %266 IRU WKHLU RIÀFH DSSOLFDWLRQV DGYDQFHG FRPSXWHU DUFKLWHFWXUH 9DULRXV
%266KDVDOVREHHQGHSOR\HGLQ7DPLO1DGX LQVWLWXWLRQVOLNH,,7V,,,7VDQG1,7VDQG3ULYDWH
&KKDWWLVJDUK 2ULVVD .HUDOD 0DKDUDVKWUD 8QLYHUVLWLHV OLNH $PLW\ 6KDUGD 8QLYHUVLW\ DUH
7ULSXUD 3XGXFKHUU\ $QGDPDQ  1LFREDU XVLQJ 7HMDV  ,W LV DOVR EHLQJ XVHG WR WHDFK
,VODQGV DQG +DU\DQD LQ YDULRXV DSSOLFDWLRQV FRXUVHV DW ,,7 'HOKL ,,,7 $OODKDEDG DQG ,6,
*RYHUQPHQWRI7DPLO1DGXKDVPDQGDWHGWKH .RONDWD DQG LV EHLQJ DFWLYHO\ FRQVLGHUHG LQ
XVH RI %266 /LQX[ DV RQH RI WKH 2SHUDWLQJ PDQ\(XURSHDQ8QLYHUVLWLHVDVZHOO
6\VWHPVLQDOO*RYHUQPHQW'HSDUWPHQWV%266
)XWXUH,QLWLDWLYHV
/LQX[KDVEHHQGHSOR\HGXQGHUWKHIUHHODSWRS
VFKHPHLQ7DPLO1DGX %266SUHORDGHG+&/ 'HSOR\LQJ 0HJKGRRW 2SHQVWDFN FORXG VXLWH RQ
GHVNWRSVDUHEHLQJGHSOR\HGE\*RYWRI2ULVVD %266022/ DW *RYHUQPHQW VFLHQWLÀF DQG
DQG &+L36 &KKDWWLVJDUK (GX%266 LV EHLQJ UHVHDUFKRUJDQL]DWLRQV$UFKLWHFWXUDO6LPXODWLRQRI
GHSOR\HGLQVFKRROVXQGHU('86$7SURMHFWRI 1RGHXVLQJ+HWHURJHQRXVFRPSXWHUVDVDVSLQRII
*RYWRI3XQMDEDQGVFKRROVRI3XGXFKHUU\DQG IURP%KDUWL6LP3URMHFW


0LQLVWU\RI(OHFWURQLFV ,QIRUPDWLRQ7HFKQRORJ\ 0HLW<

7UDQVODWLRQ5 ' 1RLGD VLJQHG 1RQ'LVFORVXUH $JUHHPHQWV

1'$ IRU7UDQVIHURIWKLV7HFKQRORJ\
0HGLFDO(TXLSPHQWV7RROV
 /RZ7HPSHUDWXUHDQG/RZ3UHVVXUH&X&X)LQH
'HSOR\PHQWRI0H9/LQHDU$FFHOHUDWRU /,1$& IRU
3LWFK %RQGLQJ IRU 9HUWLFDO '  ,QWHJUDWLRQ
FDQFHUWUHDWPHQW/,1$&0DFKLQHDW,QGLDQ,QVWLWXWH
8QGHUD0HLW<VXSSRUWHGSURMHFWHQWLWOHG/RZ
RI+HDGDQG1HFN2QFRORJ\,QGRUHLVEHLQJXVHG
7HPSHUDWXUH DQG /RZ 3UHVVXUH &X&X )LQH
IRUSDWLHQWWUHDWPHQW2QDQDYHUDJHSDWLHQWVDUH
3LWFK %RQGLQJ IRU 9HUWLFDO '  ,QWHJUDWLRQ
EHLQJWUHDWHGSHUGD\7KHLQVWDOODWLRQDQGKDQGLQJ
WHFKQRORJ\ LV EHLQJ GHYHORSHG E\ ,,7
RYHURIVHFRQG/,1$&PDFKLQHDW$PUDYDWL+RVSLWDO
+\GHUDEDG IRU ÀQH SLWFKEODQNHW &X&X
0DKDUDVKWUD  KDV EHHQ FRPSOHWHG DORQJZLWK
ERQGLQJDWFHQWLJUDGHWHPSHUDWXUHDQG
QHFHVVDU\ $(5% FOHDUDQFH 7KH GHSOR\PHQW RI
EDU SUHVVXUH IRU 9HUWLFDO LQWHJUDWLRQ ' ,&
WKLUG/,1$&0DFKLQHDW%./:DODZDONDU+RVSLWDO
DSSOLFDWLRQV 
&KLSOXQ0DKDUDVKWUDLVLQSURJUHVVDQGUDGLDWLRQ
WHVWLQJKDVEHHQDFFRPSOLVKHG)RUWKHUHPDLQLQJ  $QDORJ0L[HGVLJQDODQG5),&'HYHORSPHQW
PDFKLQHEDVLFFLYLOZRUNLV\HWWREHFRPSOHWHGE\ DQG 7HVW IRU ELRPHGLFDO DSSOLFDWLRQV 8QGHU
.LGZDL+RVSLWDO%DQJDORUHEHIRUHWKHGLVSDWFKRI 0HLW< VXSSRUWHG SURMHFW HQWLWOHG ´$QDORJ
WKH/,1$&PDFKLQH 0L[HGVLJQDODQG5),&'HYHORSPHQWDQG7HVW
IRU ELRPHGLFDO DSSOLFDWLRQVµ ,,7 %RPED\
0LFUR 1DQR(OHFWURQLFV
GHYHORSHGDQGGHPRQVWUDWHGWKHSURWRW\SHIRU
 0LFURHOHFWURQLFV 3XOVH R[LPHWHU (&*(0* DQG :LUHOHVV
 'HVLJQ RI  *+] /RZ 1RLVH $PSOLÀHU 7UDQVPLWWHU  5HFHLYHU IRU VKRUW UDQJH
8QGHU D 0HLW< VXSSRUWHG SURMHFW HQWLWOHG FRPPXQLFDWLRQ *UDSKLFDO 8VHU ,QWHUIDFH DQG
´'HVLJQDQG&KDUDFWHUL]DWLRQRI&026EDVHG $SSOLFDWLRQ VRIWZDUH IRU UHFRQVWUXFWLRQ RI
0LOOLPHWHUZDYH &RPSRQHQWV IRU *+] (&*(0*DQG3XOVHR[LPHWHUKDYHDOVREHHQ
,QWHJUDWHG %URDGEDQG 7UDQVFHLYHUVµ ,,6F GHYHORSHG,3VFUHDWHGXQGHUWKLVSURMHFWKDV
%DQJDORUH KDV GHVLJQHG IDEULFDWHG DQG SURYLGHGDSODWIRUPIRUWKHGHYHORSPHQWRIQH[W
GHPRQVWUDWHG D /RZ 1RLVH $PSOLÀHU /1$  JHQHUDWLRQRIELRPHGLFDO$6,&V
7KLV /1$ DPSOLÀHV ZHDN 5) VLJQDOV DQG LV  1DQRWHFKQRORJ\,QLWLDWLYHV
RSHUDWLRQDO XSWR  *+] $Q DJUHHPHQW KDV
6RPHRIWKHGHYLFHVGHYHORSHGXQGHUWKH&HQWUHV
EHHQVLJQHGEHWZHHQ,,6F%DQJDORUHDQG%(/
RI ([FHOOHQFH IRU 1DQRWHFKQRORJ\ HVWDEOLVKHG E\
%DQJDORUHIRUWUDQVIHURIWKLVWHFKQRORJ\
1DQRWHFKQRORJ\,QLWLDWLYHV'LYLVLRQDUH
 0(06 EDVHG KDQG KHOG VHQVRU IRU &DUERQ
L  )XOO\3DFNDJHGJDVVHQVRUDUUD\IRU&2&2
0RQR[LGH DQG $PPRQLD 8QGHU D 0HLW<
12DQG62¤¤KDVEHHQGHYHORSHGE\,,6F
VXSSRUWHGSURMHFW&((5,3LODQLKDVGHYHORSHG
%DQJDORUH
VHQVRU IRU &DUERQPRQR[LGH DQG $PPRQLD
JDVHV 7KH $PPRQLD *DV 6HQVRU KDV EHHQ LL  6RLO PRLVWXUH VHQVRUV KDV EHHQ GHYHORSHG
WHVWHG IRU  SSP VHQVLWLYLW\ ZKLOH &DUERQ MRLQWO\E\,,7%RPED\DQG,,6F%DQJDORUH
0RQR[LGHVHQVRUKDVEHHQWHVWHGIRUSSP
LLL *D1 5)+(07 GHYLFHV KDV EHHQ SURWRW\SHG
VHQVLWLYLW\ &RPSDQLHV LH 0V 0DFZLQ ,QGLD
DQGWHVWHGDW,,7%
1HZ'HOKLDQG0V&KHPLFRW6FLHQWLÀF*DVHV


 $QQXDO5HSRUW

LY 'HWHFWLRQ XVLQJ &DQWLOHYHUV RI &KROHUD WR[LQ L  0 L F U R Z D Y H  V X E V W U D W H V   &  0 ( 7  K D V

,)1 DVDELRPDUNHUIRUWXEHUFXORVLVDQGQ0 GHYHORSHGDSDWHQWHG60(&+SURFHVVZKLFK
OHYHOVRI8UHDDQG7ULJO\FHULGHDW,,7%RPED\ F R P S U L V H V  6 L J P D  0 L [ L Q J   ( [ W U X V L R Q 
&DOHQGDULQJ IROORZHG E\ +RW SUHVVLQJ IRU
Y  $ GHYLFH IRU YLVXDO GHWHFWLRQ RI %LOLUXELQ IRU
PDNLQJ PLFURZDYH VXEVWUDWHV 8VLQJ WKLV
+HSDWLWLV SDWLHQWV KDV EHHQ GHYHORSHG DW ,,7
SURFHVV PLFURZDYH VXEVWUDWHV ZLWK GLHOHFWULF
*XZDKDWL
FRQVWDQW YDOXHV  DQG  KDYH EHHQ
YL ) D E U L F D W L R Q  R I  P L F U R  I X H O  F H O O V  D Q G GHYHORSHGLQGLJHQRXVO\IRUWKHÀUVWWLPHZKLFK
GHPRQVWUDWHG SHUIRUPDQFH LQ ODERUDWRU\ KDV DUH VXSHULRU LQ SURSHUWLHV FRPSDUHG WR
EHHQGHYHORSHGMRLQWO\E\,,7%RPED\DQG,,6F LPSRUWHGFRXQWHUSDUWVLQWHUPVRIXOWUDORZORVV
%DQJDORUH WDQJHQW  DW  *+]  DQG WHPSHUDWXUH
YLL 1DQRGHYLFHVIRUZDWHUSXULÀFDWLRQKDYHEHHQ VWDEOH SURSHUWLHV IRU RXWGRRU ZLUHOHVV
GHYHORSHGDW,,7'HOKL FRPPXQLFDWLRQDSSOLFDWLRQV

YLLL ,QWHUIHUHQFH/LWKRJUDSK\KDVEHHQXVHGDW,,7 LL 0 L F U R S K R W R V H Q V R U V  I R U  L Q G X V W U L D O
'HOKL WR IDEULFDWH IHZ FRPSOH[ SKRWRQLF DSSOLFDWLRQV &0(7 KDV PDGH LPSRUWDQW
VWUXFWXUHVLQVXEPLFURQVL]H E U H D N W K U R X J K  L Q  P D Q X I D F W X U L Q J  R I
PLFURSKRWRVHQVRUVWKURXJKVLPSOHSURFHVVDW
L[ &)2IHUURHOHFWULF QDQRFRPSRVLWH KDV EHHQ
SRWHQWLDOO\YHU\ORZFRVW7KHWHFKQRORJ\DOORZV
VXFFHVVIXOO\V\QWKHVL]HGDQGLWVDSSOLFDWLRQIRU
VHOHFWLYH WUDQVIHU DQG DFFXUDWH UHJLVWUDWLRQ
SKRWRFDWDO\VLV KDV EHHQ GHPRQVWUDWHG E\ ,,7
3URWRW\SHVKDYHEHHQGHYHORSHGEDVHGRQWKH
'HOKL
SKRWRSDWWHUQDEOH&G6WKLFNÀOPSDVWHXVHIXOLQ
[  )ORZ VWXGLHV RI WKH IXHO DQG WKH R[LGDQW KDV WKH DUHD RI DXWRPDWLF FDU OLJKW FRQWURO KLJK
E H H Q  F D U U L H G  R X W  W K U R X J K  W K H  3 ' 0 6 VSHHGGLJLWDOÀOPSDVWHDQGKLJKVSHHGGLJLWDO
PLFURFKDQQHOVDW,,7'HOKL REMHFWFRXQWHUV
[L 2QH WHFKQRORJ\ WUDQVIHU WR 3XULXV D VWDUWXS LLL / HDG IUHH ;UD\ $SURQ IRU 0HGLFDO
FRPSDQ\IRUGHYHORSLQJDELRVHQVRUSODWIRUP $SSOLFDWLRQV &0(7 KDYH GHYHORSHG OHDG
E\,,70DGUDV IUHH ;UD\ VKLHOGLQJ PDWHULDO DQG KDYH
[LL )HZ RI WKH GHYLFHV VXFK DV SDSHU EDVHG GHYHORSHG SURWRW\SH PHGLFDO DSURQ XVLQJ
VHQVRUV GHYHORSHG DW ,,7 *XZDKDWL KDYH WKHVH PDWHULDOV ZKLFK LV OLJKWHU WKDQ
DWWUDFWHGPHGLD·VDWWHQWLRQ FRPPHUFLDO SURGXFWV $OVR LW KDV IXUWKHU
SRWHQWLDOLQUHGXFWLRQRIZHLJKW7KHGHYHORSHG
 (OHFWURQLFV 0DWHULDOV DQG &RPSRQHQW DSURQV KDYH EHHQ WHVWHG DW %$5& 0XPEDL
'HYHORSPHQW (0&' 7KLV WHFKQRORJ\ LV QRZ XQGHU SURFHVV IRU
(0&' LV UHDG\ WR WUDQVIHU VL[ WHFKQRORJLHV LQ WKH WUDQVIHU WR LQWHUHVWHG LQGXVWULHV RQ QRQ
DUHDVRIPLFURZDYHVXEVWUDWHVPLFURSKRWRVHQVRUV H[FOXVLYHEDVLV
IRU LQGXVWULDO DSSOLFDWLRQV /HDG IUHH ;UD\ $SURQ LY &ULVWREDOLWH3RZGHUIRUVSDFHDSSOLFDWLRQV
&ULVWREDOOLWHSRZGHU1DQR=Q2PDWHULDODQG4XLFN ,652UHTXLUHVUHJXODUVXSSO\RIFULVWREDOLWHIRU
UHFKDUJHDEOHODPSXVLQJJUDSKHQH WKHLU5HODXQFKDEOH9HKLFOH 5/9 DSSOLFDWLRQV
&0(7 KDV GHYHORSHG D WHFKQRORJ\ IRU WKH



0LQLVWU\RI(OHFWURQLFV ,QIRUPDWLRQ7HFKQRORJ\ 0HLW<

SURGXFWLRQ RI VSDFH TXDOLÀHG SKDVH SXUH &'$& EXLOGLQJV DW 3XQH DQG +\GHUDEDG DQG DW
FULVWREDOLWHLQSLORWSODQWVFDOH7LOOGDWH&0(7 0HLW< IRU GHPRQVWUDWLRQ 7UDQVIHU RI 7HFKQRORJ\
KDVVXSSOLHGNJRIFULVWREDOLWHWR,652 7R7  RI WKHVH WHFKQRORJLHVSURGXFWV KDV EHHQ
GRQHZLWK(&,/RQWK-XO\DW0HLW<IRUODUJH
Y 1 D Q R  = Q 2  S R Z G H U  I R U  H O H F W U R Q L F V
VFDOHSURGXFWLRQ
D S S O L F D W L R Q   &  0 ( 7  K D V  G H Y H O R S H G
WHFKQRORJ\IRUSURGXFWLRQRIQDQR=Q2SRZGHU 0 H L W <  K D V  Q R Z  L Q L W L D W H G  G H Y H O R S P H Q W  R I
IRU HOHFWURQLFV DSSOLFDWLRQV 7KH SRZGHU KDV WHFKQRORJLHV DQG VROXWLRQV IRU 6PDUW &LWLHV XVLQJ
HQKDQFHGFDWDO\WLFDFWLYLW\7KHWHFKQRORJ\LVDW ,QWHUQHW RI 7KLQJV ,27  )RXU FHQWHUV RI &'$&
3LORW3ODQW6WDJH % H Q J D O X U X   & K H Q Q D L   + \ G H U D E D G  D Q G
7KLUXYDQDQWKDSXUDP  DUH HQWUXVWHG ZLWK WKH
YL 4XLFNUHFKDUJHDEOHODPS$TXLFNO\UHFKDUJH
GHYHORSPHQWZRUN
ODPS KDV EHHQ GHYHORSHG E\ &0(7 XVLQJ
JUDSKHQH EDVHG VXSHUFDSDFLWRU 3URWRW\SH 7KHREMHFWRIWKHSURMHFWLQFOXGHV
ODPSFDQEHFKDUJHGXQGHUWZRPLQXWHVZKLFK
D  'HVLJQDQG'HYHORSPHQWRID6HFXUH1HWZRUN
WKHQFDQSRZHUWKHODPSIRUXSWRDQKRXU
$UFKLWHFWXUH IRU 6PDUW &LWLHV XVLQJ ,QWHUQHW RI
*UHHQFRPSXWLQJ 7KLQJV DQG 6RIWZDUH 'HÀQHG 1HWZRUNV ZKLFK
DGGUHVVWKHQHHGVRIYDULRXVGRPDLQVOLNH
*UHHQ FRPSXWLQJ RU ,7 VXVWDLQDELOLW\ LV WKH VWXG\
DQG SUDFWLFH RI HQYLURQPHQWDOO\ VXVWDLQDEOH ,7 RU y 6PDUW8WLOLWLHV6PDUW(OHFWULFDO'LVWULEXWLRQ
FRPSXWLQJ 7KLV FDQ LQFOXGH GHVLJQLQJ 6 \ V W H P V   6 P D U W  :D W H U  ' L V W U L E X W L R Q
PDQXIDFWXULQJXVLQJDQGGLVSRVLQJRIFRPSXWHUV 1HWZRUNV6ROLG:DVWH0DQDJHPHQW
VHUYHUVDQGDVVRFLDWHGVXEV\VWHPVHIÀFLHQWO\DQG
y 6PDUW 0RELOLW\ 6PDUW 7UDQVSRUWDWLRQ
HIIHFWLYHO\ ZLWK PLQLPDO RU QR LPSDFW RQ WKH
0 D Q D J H P H Q W  6 \ V W H P V   ( P H U J H Q F \
HQYLURQPHQW %HVLGHV ,7 LWVHOI EHLQJ JUHHQ LW FDQ
6HUYLFHV
VXSSRUWDVVLVWDQGOHYHUDJHRWKHUHQYLURQPHQWDO
LQLWLDWLYHVWRDFKLHYHHQHUJ\HIÀFLHQF\DQGUHGXFH y 6PDUW(QYLURQPHQW3ROOXWLRQ&RQWURO&LW\
FDUERQ IRRWSULQW LQ HYHU\ ZDON RI OLIH E\ RIIHULQJ ZLGH6XUYHLOODQFH
LQQRYDWLYHVROXWLRQV,QDGGLWLRQWRPRYLQJLWVHOILQD y 6PDUW&LWL]HQ0RELOH&URZG6RXUFLQJ
J U H H Q H U  G L U H F W L R Q  D Q G  O H Y H U D J L Q J  R W K H U
E  'HVLJQ DQG 'HYHORSPHQW RI D XQLÀHG FORXG
HQYLURQPHQWDOLQLWLDWLYHV,&7FRXOGDOVRKHOSFUHDWH
IUDPHZRUNIRUVWDQGDUGL]HGGDWDDJJUHJDWLRQ
JUHHQ DZDUHQHVV E\ DVVLVWLQJ LQ EXLOGLQJ
VWRUDJHDQGDQDO\WLFVIRUWKHDERYHVHUYLFHV
FRPPXQLWLHV HQJDJLQJ JURXSV DQG VXSSRUWLQJ
HGXFDWLRQDQGJUHHQDGYRFDF\FDPSDLJQV F  3URWRW\SHGHPRQVWUDWLRQRIGHYHORSHG 6PDUW
&LW\DSSOLFDWLRQV
8QGHUWKHSURJUDP0HLW<KDVDOUHDG\GHYHORSHG
WKURXJK &'$& %HQJDOXUX DQG &KHQQDL FHQWHUV   7HFKQRORJ\'HYHORSPHQW 
GHSOR\DEOH ,&7 WHFKQRORJLHV IRU 6PDUW EXLOGLQJV 'HPRQVWUDWLRQIRU,QGLDQ,QGXVWULHV
ZLWK ORZ FDUERQ HPLVVLRQV 7KH WHFKQRORJLHV 1DWLRQDO 0LVVLRQ RQ 3RZHU (OHFWURQLFV
SULPDULO\DUHIRU/LJKWLQJFRQWURO+9$&FRQWURODQG 7HFKQRORJ\ 1$03(7 3KDVH,,
$ L U  T X D O L W \  P R Q L W R U L Q J  L Q  E X L O G L Q J V   7 K H
WHFKQRORJLHVSURGXFWVGHYHORSHGDUHGHSOR\HGLQ $6RODU&KDUJH&RQWUROOHU8QLW &&8 IRU7HOHFRP


 $QQXDO5HSRUW

DSSOLFDWLRQVKDVEHHQGHYHORSHGDQGLQVWDOOHGDW RI1HW=HUR(QHUJ\EXLOGLQJDQG/RZ9ROWDJH'LUHFW
VLWH RI %61/ LQ .HUDOD $GYDQFHG 0HWHULQJ &XUUHQW /9'&  KDV EHHQ GHYHORSHG DQG
,QIUDVWUXFWXUH $0, LQWKHIRUPRIVLQJOHSKDVHDQG GHPRQVWUDWHG
WKUHH SKDVH VPDUW PHWHUV ZLWK DGYDQFHG $0,
7KH WHFKQRORJ\ RI 6RODU &KDUJH &RQWUROOHU 8QLW
IHDWXUHV KDYH EHHQ GHYHORSHG DQG WHVWHG :LGH
&&8  IRU 7HOHFRP DSSOLFDWLRQV KDV EHHQ
$UHD0RQLWRULQJXVLQJ3KDVRU0HDVXUHPHQW8QLWV
WUDQVIHUUHGWR,7,/LPLWHGIRUFRPPHUFLDOL]DWLRQ
308V LVEHLQJH[SHULPHQWHGDWÀYH.HUDOD6WDWH
(OHFWULFLW\%RDUG .6(% VXEVWDWLRQV7KHFRQFHSW

6RODU&KDUJH&RQWUROOHU8QLW &&8 IRU7HOHFRP$SSOLFDWLRQV

7HFKQRORJ\ RI 6LQJOH 3KDVH DQG 7KUHH 3KDVH ,7,/LPLWHG3DODNNDGDQG0V3RZHUWHF(QHUJ\

6PDUW(QHUJ\0HWHUKDVEHHQWUDQVIHUUHGWR0V 3YW/LPLWHG'HOKL

6PDUW(QHUJ\0HWHU


 0LQLVWU\RI(OHFWURQLFV ,QIRUPDWLRQ7HFKQRORJ\ 0HLW<

7HFKQRORJ\WUDQVIHUDJUHHPHQWIRU9HKLFOH&RQWURO RIWKHSODQW&RQWUROURRPKDVEHHQHVWDEOLVKHGDQG
8QLW 9&8  DQG 7UDLQ &RPPXQLFDWLRQ 1HWZRUN $67H&V\VWHPVDUHEHLQJGHSOR\HG7KHSURMHFWLV
7&1 WHFKQRORJ\KDVEHHQVLJQHGZLWK0V%KDUDW SURJUHVVLQJLQLWVÀQDOVWDJHRILPSOHPHQWDWLRQ
+HDY\(OHFWULFDOV/LPLWHG %+(/ DQG0V$%%/WG
&HQWUHVRI([FHOOHQFH
%DQJDORUH$SDWHQWRQ´$QLPSURYHGVTXLUUHOFDJH
LQGXFWLRQPRWRUZLWKHQKDQFHGHIÀFLHQF\DQGZLGH 1DQRWHFKQRORJ\&HQWUHV
UDQJHRIRSHUDWLQJVSHHGIRUDSSOLFDWLRQLQHOHFWULF 0DLQ IRFXV RI 1DQRWHFKQRORJ\ ,QLWLDWLYHV LV WR
YHKLFOHµKDVEHHQÀOHG GHYHORS DQ HFRV\VWHP IRU VHPLFRQGXFWRU
8QLYHUVDO $QDORJ LQSXW PRGXOH DQG +$57 PDQXIDFWXULQJ WKURXJK FXWWLQJ HGJH UHVHDUFK LQ
&RPSDWLEOHLQSXWRXWSXWPRGXOHV 1DQRHOHFWURQLFVDQGWRGHYHORSSURGXFWVGHYLFHV
PHHWLQJWKHVRFLHWDODQGVWUDWHJLFUHTXLUHPHQWVRI
7HFKQRORJ\ RI 8QLYHUVDO $QDORJ LQSXW PRGXOH
WKH FRXQWU\ ,Q WKLV GLUHFWLRQ VHYHUDO &HQWUH RI
8$,0  KDUGZDUH  LWV LQWHJUDWLRQ ZLWK L526(
([FHOOHQFHLQ1DQRWHFKQRORJ\DVJLYHQEHORZKDYH
VRIWZDUH DQG +$57 $QDORJ LQSXWRXWSXW PRGXOHV
EHHQHVWDEOLVKHGWREULGJHWKHJDSEHWZHHQEDVLF
KDV EHHQ GHYHORSHG DQG WHVWHG L526( VRIWZDUH
5 '  D Q G  P D Q X I D F W X U L Q J  1 D Q R  G H Y L F H V 
KDVEHHQPDGH+$57FRPSDWLEOHDQGWHVWHGZLWK
VXEV\VWHPVV\VWHPVIRUWKHVRFLDOEHQHÀWV
L&21FRQWUROOHU
L  &HQWUHVRI([FHOOHQFHLQ1DQRHOHFWURQLFV
$GYDQFHG$XWRPDWLRQ 3URFHVV2SWLPLVDWLRQ
3KDVH ,, ² D MRLQW SURMHFW EHWZHHQ ,,6F
6\VWHPIRU&HPHQW)DFWRU\
%DQJDORUHDQG,,7%RPED\
$GYDQFHG DXWRPDWLRQ LQGLJHQRXV WHFKQRORJ\
 7 K H  S U R M H F W  & H Q W U H V  R I  ( [ F H O O H Q F H  L Q
GHYHORSHGXQGHU$XWRPDWLRQ6\VWHPV7HFKQRORJ\
1DQRHOHFWURQLFV &(1  3KDVH ,, KDV EHHQ
&HQWUH $67H& SURMHFWKDVEHHQGHSOR\HGLQWKH
LQLWLDWHGWRDFFHOHUDWHUHVHDUFKDQGGHYHORSPHQW
IRXU LPSRUWDQW DUHDV RI &HPHQW IDFWRU\ LH .LOQ
DFWLYLWLHVLQQHZDUHDVRIQDQRHOHFWURQLFVQDQR
&HPHQW 0LOO &\FORQH MDPPLQJ  GHWHFWLRQ DQG
PDWHULDOV QDQRVWUXFWXUHV DQG LQWHJUDWHG
6WDFNHUUHFODLPHU7KHTXDQWLÀFDWLRQRIEHQHÀWVLQ
VHQVRUV\VWHPVDVZHOODVWRJHQHUDWHDFULWLFDO
WHUPVRISURGXFWLYLW\VDYLQJVLQHQHUJ\TXDOLW\HWF
PDVV RI KLJKO\ WUDLQHG PDQSRZHU WR SURSHO
LVLQSURJUHVV7KHEHQHÀWVRIWKHVHWHFKQRORJLHV
W K H V H  D U H D V   ) D F L O L W L H V  * U R Z W K  D Q G
ZLOO EH SURSDJDWHG WR FHPHQW LQGXVWU\ WKURXJK D
&KDUDFWHUL]DWLRQ VXFKDVLRQEHDPVSXWWHULQJ
ZRUNVKRS
'HHS 5HDFWLYH ,RQ (WFKLQJ DQG 3ODVPD
$ X W R P D W L R Q  R I  W K H  6 X J D U  3 O D Q W  X V L Q J (QKDQFHG &KHPLFDO 9DSRU 'HSRVLWLRQ
,QGLJHQRXV7HFKQRORJ\ HVWDEOLVKHGDWWKHVHFHQWUHVDUHZLGHO\XWLOL]HG
E\ WKH IDFXOWLHV DQG UHVHDUFKHV RI WKHVH
7KHWHFKQRORJLHVV\VWHPVGHYHORSHGXQGHU$67H&
LQVWLWXWHVIRUFDUU\LQJRXWWKHZRUOGFODVV5 'LQ
SURJUDPPHDUHEHLQJGHSOR\HGDW7KDQGDYD&R
WKH 1DQRWHFKQRORJ\ $ ODUJH QR RI 1DQR
RSHUDWLYH 6XJDU )DFWRU\ 7&6/  9LVDNKDSDWDQDP
GHYLFHVKDYHEHHQGHVLJQHGDQGIDEULFDWHGDW
IRULPSURYLQJWKHSURGXFWLYLW\DQGHQHUJ\HIÀFLHQF\
WKHVHLQVWLWXWHV



 $QQXDO5HSRUW

LL 1DQR )DEULFDWLRQ 3URWRW\SLQJ )DFLOLW\ IRU LLL & H Q W U H  R I  ( [ F H O O H Q F H  L Q  5 '  L Q

60(V DQG 6WDUWXSV LQ WKH DUHD RI 0LFUR 7KHUDQRVWLFV'HYLFHVDW,,7*XZDKDWL
(OHFWURPHFKDQLFDO 6\VWHPV 0(06  
 &HQWUH IRU 1DQRWHFKQRORJ\ DW ,,7 *XZDKDWL
1DQR(OHFWURPHFKDQLFDO6\VWHPV 1(06 
WDUJHWV WR WDNH D OHDG IRU WKH VFLHQWLÀF DQG
DW,,7%RPED\
WHFKQRORJLFDOGHYHORSPHQWVLQWKH1(UHJLRQRI
 7KH 1DQRIDEULFDWLRQ SURWRW\SLQJ IDFLOLW\ WKH FRXQWU\ 0DLQ DLPV RI WKH FHQWUH DUH WR
FRQVLVWVRIFOHDQURRPVRI&ODVVDQG&ODVV GHYHORSLQWHUGLVFLSOLQDU\H[SHULPHQWDOIDFLOLWLHV
 KDV EHHQ FRPPLVVLRQHG WR SURYLGH DQ LQ WKH 1( UHJLRQ IRU WKH IDEULFDWLRQ DQG
DFFHVVLEOHSODWIRUPWREULQJWHFKQRORJLHVIURP FKDUDFWHUL]DWLRQ RI PLFURQDQR HOHFWURQLF
7HFKQRORJ\ 5HDGLQHVV /HYHO 75/  WR 75/  GHYLFHV DQG WR IRUP D FRPSHWHQW JURXS RI
7KHSULPDU\REMHFWLYHRIWKLVIDFLOLW\LVWRHQDEOH DFDGHPLFOHDGHUVZKRZRXOGXWLOL]HWKHIDFLOLW\
UHVHDUFKHUV DQG LQGXVWULDO SDUWQHUV LQFXEDWRU DQGGHYHORSHIÀFLHQWFKHPLFDOELRORJLFDODQG
FRPSDQLHV WR IDEULFDWH DQG PDQXIDFWXUH HQYLURQPHQWDOVHQVRUVWUDQVLVWRUVDQG0(06
QDQRVFDOHGHYLFHV 1(06GHYLFHV



0LQLVWU\RI(OHFWURQLFV ,QIRUPDWLRQ7HFKQRORJ\ 0HLW<

LY & HQWUH IRU 1DQR (OHFWURPHFKDQLFDO /DPPHOODU *UDWLQJ IRU )RXULHU 7UDQVIRUP
6\VWHPV 1(06 DQG1DQRSKRWRQLFVDW,,7 6SHFWURVFRS\ 6\VWHPV DQG 1HDU )LHOG
0DGUDV 8OWUDVRQLF1DQRVFRS\
 $ 1DQRHOHFWUR 0HFKDQLFDO 6\VWHPV 1(06  Y 5HVHDUFKLQLWLDWLYHVRQ1RQ6LOLFRQEDVHG
DQG1DQRSKRWRQLFV&HQWUHVKDYHEHHQFUHDWHG 7HFKQRORJLHV IRU 1DQRIDEULFDWLRQ DQG
DW ,,7 0DGUDV 7KH SURMHFW LV H[SHFWHG WR EH 1DQRVFDOH'HYLFHVDW,,7'HOKL
FRPSOHWHG LQ 0DUFK  8QGHU WKH SURMHFW
 $ &HQWUH IRU 1DQRIDEULFDWLRQ DQG 1DQRVFDOH
5 'KDVEHHQXQGHUWDNHQLQZLGHDUHDVVXFK
GHYLFHVEDVHGRQQRQ6LWHFKQRORJLHVKDVEHHQ
DV 1(06 UHVRQDWRUV 1DQR UHVRQDWRU EDVHG
HVWDEOLVKHG DW ,,7 'HOKL 5 ' KDV EHHQ
ELRPROHFXODUGHWHFWLRQV\VWHPGHYHORSPHQWRI
FRQWLQXHGDWWKLVFHQWUHLQWKHIROORZLQJDUHDV

1R 5HVHDUFK$UHD 'HYLFH3URWRW\SH'HOLYHUDEOH

 1DQRPDJQHWLFV 1DQRPDJQHWDUUD\VDVPDJQRQLFFU\VWDOV
 1DQRSKRWRQLFV +RORJUDSKLFSKRWRQLFEDQGJDSFU\VWDOV
 1DQRSKRWRQLFV 6HOIDVVHPEOHGQDQRPHVRSRURXVVWUXFWXUHV
 1DQRSKRWRYROWDLFV ,QRUJDQLFDQGVHPLFRQGXFWLQJQDQRURGVIRUHQHUJ\FRQVHUYDWLRQ
 1DQRHOHFWURQLFV 2UJDQLFVRODUFHOO
 1DQRHOHFWURQLFV *D1QDQRZLUHVDQGQDQRGHYLFHV
 1DQRPHFKDQLFV 1DQRVSULQJVDVQDQRPHFKDQLFDOVHQVRUV
 %LRVHQVRUV (QFDSVXODWHGQDQRSDUWLFOHVLQELRGHJUDGDEOHSRO\PHUV
 0HVRVFDOH'HYLFHV 0LFURÁXLGLFIXHOFHOO
 0HVRVFDOH'HYLFHV &RUHVKHOOQDQRVWUXFWXUHVIRUWUDSSLQJSROOXWDQWV

 'HPRQVWUDWLRQ )DFLOLW\ RI 6XSHU LQGXVWULDOHQGXVHUVDQGVKRZHGWKHFDSDELOLW\RI

&DSDFLWRUVDW&0(77KULVVXU ZLWKVWDQGLQJKLJKSRZHUVXQGHUDSSOLHGHOHFWURQLF
ORDGV'XULQJLQLWLDOWULDOVLWKDVVKRZQVLJQLÀFDQW
&0(7 KDV GHYHORSHG FRPSOHWH LQGLJHQRXV
LPSURYHPHQWLQSHUIRUPDQFHLQ993$7HTXLSPHQW
WHFKQRORJ\ IRU PDNLQJ VXSHUFDSDFLWRUV 7KHVH
WKDWLVDWWDFKHGZLWK(OHFWURQLF9RWLQJ0DFKLQHV$
VXSHUFDSDFLWRUV DUH FDUERQ DHURJHO EDVHG 7KH
SLORWVFDOH GHPRQVWUDWLRQ SODQW IRU SURGXFWLRQ RI
SHUIRUPDQFHV RI DHURJHO VXSHUFDSDFLWRUV
DHURJHO VXSHUFDSDFLWRU KDV WKHUHIRUH EHHQ
GHYHORSHGE\&0(7ZHUHIRXQGWREHVXSHULRUDV
XQGHUWDNHQ IRU WKH ÀUVW WLPH LQ WKH FRXQWU\ WR
FRPSDUHG WR WKDW RI WKH FRPPHUFLDOO\ DYDLODEOH
I D F L O L W D W H  W K H  W U D Q V I H U  R I  W H F K Q R O R J \  I R U
VXSHUFDSDFLWRUVPDGHZLWKFRQYHQWLRQDODFWLYDWHG
FRPPHUFLDOL]DWLRQ $HURJHO 3LORW SODQW SDUW KDV
FDUERQ 7KH LQGLJHQRXV $HURJHO VXSHUFDSDFLWRUV
EHHQVXFFHVVIXOO\FRPSOHWHG
KDYH SDVVHG VWULQJHQW TXDOLW\ WHVWLQJ E\ VHYHUDO


 $QQXDO5HSRUW

 5R+67HVWLQJIDFLOLW\DW&0(7+\GHUDEDG DZDUHQHVVRQKD]DUGRXVVXEVWDQFHXVLQJYDULRXV

0HLW< KDV FUHDWHG ZRUOG FODVV ÀUVW JRYHUQPHQW LQGXVWULDO DQG DFDGHPLF FRQIHUHQFHV 7KH
WHVWLQJ ODERUDWRU\ IDFLOLWLHV IRU KD]DUGRXV ODERUDWRU\ LV VODWHG WR EH EHFRPH UHIHUHQFH
VXEVWDQFHVSUHVHQFHLQHOHFWURQLFVDQGHOHFWULFDO ODERUDWRU\ DV SHU (ZDVWH 5XOH  JXLGHOLQHV
HTXLSPHQWVDW&0(7+\GHUDEDG7KHODERUDWRU\LV UHOHDVHG E\ 0LQLVWU\ RI (QYLURQPHQW )RUHVWV 
FDSDEOHRIFHUWLI\LQJDQGLVVXHLQWHUQDWLRQDOO\YDOLG &OLPDWH&KDQJH
FHUWLÀFDWH DV SHU ,62  ,W LV DOVR UDLVLQJ



0LQLVWU\RI(OHFWURQLFV ,QIRUPDWLRQ7HFKQRORJ\ 0HLW<

 &HQWUH RI ([FHOOHQFH IRU 'LJLWDO DQGULVNVGXHWRGLJLWDOREVROHVFHQFH

3UHVHUYDWLRQ
7KH GHYHORSPHQW RI SLORW GLJLWDO UHSRVLWRULHV
'LJLWDO 3UHVHUYDWLRQ DGGUHVVHV WKH ORQJ WHUP LQLWLDWHG DW WKH IROORZLQJ GRPDLQ LQVWLWXWLRQV
SUHVHUYDWLRQDQGDFFHVVRIGLJLWDOGDWD ERUQGLJLWDO UHDFKHG DGYDQFH OHYHOV RI LPSOHPHQWDWLRQ E\
DV ZHOO DV UHIRUPDWWHG GLJLWDO  LQ WKH PLGVW RI FUHDWLQJGLJLWDOSUHVHUYDWLRQLQIUDVWUXFWXUHDWWKHVH
WHFKQRORJLFDOREVROHVFHQFHLQWHUPVRIVWRUDJHÀOH LQVWLWXWLRQV
IRUPDWVRSHUDWLQJV\VWHPVVRIWZDUHHWF
‡ 6 W D P S V   5 H J L V W U D W L R Q  ' H S D U W P H Q W 
*RYHUQPHQWKDVLQLWLDWHG&HQWUHRI([FHOOHQFHIRU *RYHUQPHQWRI$QGKUD3UDGHVK
'LJLWDO 3UHVHUYDWLRQ DW &'$& 3XQH DQG &'$&
  &RPSXWHUL]DWLRQRI5HJLVWUDWLRQ'RFXPHQWV
12,'$ZLWKWKHIROORZLQJREMHFWLYHV
&$5' SURMHFW
y &RQWLQXLQJ 5  ' LQ 'LJLWDO 3UHVHUYDWLRQ IRU
‡ 1DWLRQDO$UFKLYHVRI,QGLD1HZ'HOKL
GHYHORSPHQWRIWRROVLQYDULRXVGRPDLQV
  *RYHUQPHQW$UFKLYHV
y 'HYHORSSLORW'LJLWDO3UHVHUYDWLRQUHSRVLWRULHV
‡ ,QGLUD*DQGKL1DWLRQDO&HQWUHIRU$UWV ,*1&$ 
y 'HÀQH WKH 'LJLWDO 3UHVHUYDWLRQ 6WDQGDUGV DQG
1HZ'HOKL
%HVW3UDFWLFHV
  &XOWXUDO'DWD
y 6SUHDG DZDUHQHVV DERXW WKH SRWHQWLDO WKUHDWV


 $QQXDO5HSRUW

‡ 'HOKL'LVWULFW&RXUW UHWULHYH WKURXJK  /DNK FDWDORJXHV DQG DURXQG

 SXEOLF UHFRUGV SULYDWH DUFKLYHV DQG
  &RXUWFDVHUHFRUGV
FDUWRJUDSKLFPDSV,WSURYLGHVDFRPSOHWHGLJLWDO
7KH LQIUDVWUXFWXUH LQFOXGHV YDULRXV VRIWZDUH WRROV SUHVHUYDWLRQ ZRUNÁRZ WR 1$, VWDUWLQJ IURP
HOHFWURQLF UHFRUG PDQDJHPHQW DQG DUFKLYDO GLJLWL]DWLRQ SUHDUFKLYDO SURFHVVLQJ SUHVHUYDWLRQ
V\VWHP HUHFRUGV H[WUDFWLRQ V\VWHP SUHDUFKLYDO DQGSXEOLFDFFHVVWKURXJKRQOLQHUHSRVLWRU\SRUWDO
SURFHVVLQJV\VWHPHWF GHYHORSHGE\WKH&HQWUHRI
H*RVKZDUD DLPV DW ORQJ WHUP DQG WUXVWZRUWK\
([FHOOHQFH GLJLWDO UHSRVLWRU\ SRUWDOV DORQJ ZLWK
GLJLWDO SUHVHUYDWLRQ RI GLVSRVHG FDVHV IRU ,QGLDQ
VWRUDJHEDFNXSDQGVHUYHUKDUGZDUH7KHGLJLWDO
-XGLFLDU\ 'XULQJ WKH \HDU YDULRXV HQKDQFHPHQWV
DUFKLYDODQGWHFKQLFDOSURFHVVHVDUHGHVLJQHGWR
KDYHEHHQFDUULHGRXWSHUWDLQLQJWRFXVWRPL]DWLRQRI
FRPSO\ZLWKWKHUHTXLUHPHQWVRI,62$XGLW
'LVSRVHG &DVH 3RUWIROLR 0DQDJHU '&30  IRU
DQG&HUWLÀFDWLRQRI7UXVWZRUWK\'LJLWDO5HSRVLWRULHV
6XSUHPH&RXUWRI,QGLDDVSHUWKHUHTXLUHPHQWVRI
7KH GLJLWDO UHSRVLWRU\ RI 1DWLRQDO $UFKLYH RI ,QGLD 6XSUHPH&RXUW$OVRLQWHJUDWLRQZLWKWKHLUH[LVWLQJ
GHYHORSHGWKURXJKWKLVSURMHFWLVPDGHRQOLQHDQG &RQWHQWPDQDJHPHQWV\VWHPRSHUDWLRQDOL]DWLRQRI
FDQ EH DFFHVVHG IURP ZZZGLJLWDODUFKLYHJRYLQ ' D W D  3 U R F H V V L Q J  & H Q W U H   G H V L J Q  D Q G
ZKLFK LQFOXGHV YDULRXV VRIWZDUH WRROV VXFK DV LPSOHPHQWDWLRQ RI SUHVHUYDWLRQ HQYLURQPHQW IRU
',*,7 /$<$2SHQ$UFKLYDO,QIRUPDWLRQ6\VWHPH 'HOKLGLVWULFWFRXUWVDVSHUWKH2$,6 2SHQ$UFKLYDO
583$17$5 GDWD SURFHVVLQJ VROXWLRQ EHIRUH ,QIRUPDWLRQ 6\VWHP  IUDPHZRUN 'HVLJQ DQG
DUFKLYDO 5HSRVLWRU\ 3RUWDO 2QOLQH 5HFRUGV 'HYHORSPHQWRIZHEEDVHGGLVVHPLQDWLRQVHUYLFHV
5HSRUWLQJ 6\VWHP DQG QHFHVVDU\ KDUGZDUH DQG H*RVKZDUD SRUWDO VHOIDXGLW DQG FHUWLÀFDWLRQ IRU
UHPRWH EDFNXS IDFLOLW\ ,W IDFLOLWDWHV WR VHDUFK DQG WUXVWHGGLJLWDOUHSRVLWRU\KDYHEHHQGRQH


0LQLVWU\RI(OHFWURQLFV ,QIRUPDWLRQ7HFKQRORJ\ 0HLW<

,QWHUQHWRI7KLQJV VHOHFWHG IRU LQFXEDWLRQ 5HJXODU PHHWLQJV

ZRUNVKRSVDUHEHLQJFRQGXFWHGZLWKVWDUWXSVDQG
0HLW< LQ DVVRFLDWLRQ ZLWK (51(7 ,QGLD DQG
(QWUHSUHQHXUV &R( IRU ,R7 LV IRFXVLQJ RQ
1$66&20 KDV HVWDEOLVKHG &HQWUH RI ([FHOOHQFH
$JULFXOWXUH:DWHU+HDOWK7UDQVSRUWDWLRQ6HFXULW\
&R( IRU,QWHUQHWRI7KLQJV ,R7 RQD3XEOLF3ULYDWH
6DIHW\DQG(QHUJ\DVYHUWLFDOVHJPHQWV
3DUWQHUVKLS 333 PRGHOWR´(QDEOH,R7HFRV\VWHP
WKURXJK PD[LPL]LQJ LQGLJHQRXV VROXWLRQV DFURVV *RYHUQPHQWRI.DUQDWDNDKDVMRLQHGWKHLQLWLDWLYHDV
WKH,R7YDOXHFKDLQOHYHUDJLQJ,QGLD·VVWUHQJWKLQ,7 D6WDWHSDUWQHUWKURXJKJUDQWRIVSDFHDVZHOODV
WKURXJK FROODERUDWLYH HIIRUWV RI ,QGXVWU\ SURJUDPH[HFXWLRQVXSSRUWLQWKH6WDWH
*RYHUQPHQW$FDGHPLD ²6WDUWXSV(QWUHSUHQHXUVµ
,QQRYDWLRQ,35DQG,3'HYHORSPHQW
IRU ,QGLD·V FRQWULEXWLRQ WR JOREDO FRPSHWLWLYHQHVV
DQG ZHOO EHLQJ 7KH WRWDO RXWOD\ RI WKH SURMHFW LV &ROODERUDWLYH5HVHDUFK 'HYHORSPHQW
‫ ڎ‬/DNKV ZLWK 0HLW< FRQWULEXWLRQ RI WKURXJK*,7$
‫ ڎ‬ODNK IRU  \HDUV 7KH &R( IRU ,R7 ZDV 7R SURYLGH IXQGLQJ DQG VXSSRUW WR LQGXVWU\ DQG
ODXQFKHG E\ +RQ·EOH 3ULPH 0LQLVWHU RQ VW -XO\ DFDGHPLFLQVWLWXWLRQVIRUXQGHUWDNLQJFROODERUDWLYH
DQGWKH&HQWUHZDVLQDXJXUDWHGE\+RQ·EOH UHVHDUFK 0HLW< KDV DSSURYHG D SURSRVDO
0LQLVWHURI(OHFWURQLFVDQG,QIRUPDWLRQ7HFKQRORJ\ VXEPLWWHG E\ *OREDO ,QQRYDWLRQ DQG 7HFKQRORJ\
RQWK-XO\ $OOLDQFH *,7$  7KH SURMHFW DLPV WR SURPRWH
,QQRYDWLRQ ,3 5 ' DQG FRPPHUFLDOL]DWLRQ RI
7KH&R(RYHUDSHULRGRIWLPHDQGWKURXJK,R7ZLOO
SURGXFWV HWF LQ WKH (6'0 VHFWRU E\ SURYLGLQJ
HQDEOH ,QGLD WR HPHUJH DV D ´&RQVXPSWLRQ 
IXQGLQJVXSSRUWWR,QGXVWU\LQUHLPEXUVDEOHPRGH
&UHDWLRQ(FRQRP\µDQGDFWDVDQHQDEOHUFDWDO\VW
IRU %LODWHUDO FROODERUDWLYH UHVHDUFK LQ WKH SULRULW\
IRU,R7HFRV\VWHPVXSSRUWLQJSROLF\DQGUHJXODWLRQ
DUHDVZLWKDWLPHOLQHRIQRWPRUHWKDQWZR\HDUV$
GHYHORSPHQW UHVLGHQW FRPSHWHQF\ PRQLWRU WKH
PD[LPXPRI5 'SURMHFWVZLOOEHIXQGHGXQGHU
,35 JHQHUDWHG LQ WKH V\VWHP DQG VXSSRUW RWKHU
WKH VFKHPH 7KH ELODWHUDO SURJUDPPH ZLOO EH
LQFXEDWRUVLQWKHFRXQWU\ZLWKSURJUDPVXSSRUW
FRQGXFWHG LQLWLDOO\ LQ &DQDGD )LQODQG ,VUDHO
7KH&R(ZLOOFUHDWHDQLQQRYDWLRQSODWIRUPIRUVWDUW -DSDQ 6RXWK .RUHD 6SDLQ 6ZHGHQ 7DLZDQ DQG
XSVHQWUHSUHQHXUVHQWHUSULVHVLQWKHVSDFHRI,R7 WKH8.7KHDUHDVLQZKLFK0HLW<LVLQLWLDOO\IRFXVLQJ
ZLWK ¶'HPRFUDWLVDWLRQ RI ,QQRYDWLRQ· DV WKH NH\ DUH /DUJH $UHD )OH[LEOH (OHFWURQLFV ,QWHUQHW RI
SLOODU7KHSURSRVDOLVWRHVWDEOLVKVXFK&R(VXFK 7KLQJV ,27 DQG7HFKQRORJ\IRU,QWHUQDO6HFXULW\,Q
RYHUDSHULRGRIWLPHDFURVVPXOWLSOHFHQWUHV7KH WKLV UHJDUG DGPLQLVWUDWLYH DSSURYDO KDV EHHQ
&R( ZLOO HQHUJLVH UHVHDUFK PLQGVHW DQG UHGXFH LVVXHGRQWK$XJXVWDQG0R8ZDVVLJQHG
FRVW LQ UHVHDUFK DQG GHYHORSPHQW E\ SURYLGLQJ RQQG0D\
QHXWUDO DQG LQWHURSHUDEOH PXOWLWHFKQRORJ\ VWDFN
7KUHH SULRULW\ DUHDV YL] PHGLFDO HOHFWURQLFV
ODERUDWRU\ IDFLOLWLHV ,W ZLOO UHGXFH LPSRUW
VWUDWHJLFHOHFWURQLFV0(06KDYHEHHQDGGLWLRQDOO\
GHSHQGHQF\ RQ ,R7 FRPSRQHQWV DQG SURPRWH
LQFOXGHG IRU IXQGLQJ XQGHU WKH SURJUDP 7KUHH
LQGLJHQL]DWLRQ
DGGLWLRQDO FRXQWU\ QDPHO\ *HUPDQ\ )UDQFH DQG
7KH SK\VLFDO ODERUDWRU\ LQIUDVWUXFWXUH LV DOUHDG\ %HOJLXP KDYH EHHQ LQFOXGHG IRU H[WHQGLQJ WKH
RSHUDWLRQDO7KH&HQWUHKDVGHÀQHGJXLGHOLQHVIRU SURMHFWV LQ WKHVH FRXQWULHV DV ZHOO 2QH SURSRVDO
HQUROOLQJ RI 6WDUWXSV  6WDUWXSV KDYH EHHQ HDFKZDVDSSURYHGIRUIXQGLQJXQGHU,QGLD)LQODQG


 $QQXDO5HSRUW

DQG ,QGLD8. FDOO IRU SURSRVDOV 5HFHQWO\ WZR %LRLQIRUPDWLFV 5HVRXUFHV DQG $SSOLFDWLRQV
SURSRVDOV ZHUH DSSURYHG IRU IXQGLQJ IURP 0HLW< )DFLOLW\ %5$) &'$&3XQH
XQGHU ,QGLD&DQDGD FDOO IRU SURSRVDOV 7KH QH[W
7KH %LRLQIRUPDWLFV JURXS DW &'$& KDYH PDGH
URXQGRI,QGLD8.5)3ODXQFKHGRQWK1RYHPEHU
SLRQHHULQJ HIIRUWV WRZDUGV EULGJLQJ WKH JDS
LQWKH,QGLD8.7HFK6XPPLW
EHWZHHQ ELRORJLVWV DQG +LJK 3HUIRUPDQFH
 6XSSRUWLQJ UHVHDUFK LQ 0HGLFDO &RPSXWLQJ WHFKQRORJ\ 7KH %LRLQIRUPDWLFV
(OHFWURQLFVWKURXJK%,5$& 5HVRXUFHV DQG $SSOLFDWLRQV )DFLOLW\ RU %5$) LV
LQIUDVWUXFWXUDOVHWXSIRUQDWLRQDOXVH
7RSURPRWHVFLHQWLÀFDQGWHFKQRORJLFDOUHVHDUFKLQ
0HGLFDO (OHFWURQLFV VHFWRU LQ ,QGLD 0HLW< LQ 5$)SURYLGHVDKLJKHQGVXSHUFRPSXWLQJIDFLOLW\WR
DVVRFLDWLRQZLWK%LRWHFKQRORJ\,QGXVWU\5HVHDUFK %LRLQIRUPDWLFVUHVHDUFKHUVURXQGWKHJOREHRQWKH
$VVLVWDQFH &RXQFLO %,5$&  LV LPSOHPHQWLQJ OLQHVRIZRUOGZLGH%LRJULGVOLNH1&%,RI1,+DQG(%,
,QGXVWU\,QQRYDWLRQ3URJUDPRQ0HGLFDO(OHFWURQLFV RI(XURSH
,,30(  7KH SURMHFW DLPV WR IXQG D SRUWIROLR RI
%5$) LV WKH GHGLFDWHG IDFLOLW\ RI PXOWL  WHUDÁRS
,QGLDQOHGSLORW3URMHFWVWKDWWDUJHWLQQRYDWLRQVLQWKH
VXSHUFRPSXWLQJFOXVWHUFDOOHG3$5$0
PXOWLGLVFLSOLQDU\ DUHDV FRPSULVLQJ HOHFWURQLFV
HQJLQHHULQJPHGLFDOGHYLFHVKHDOWKFDUHVRIWZDUH %,2*(1( 3$5$0 %LR&KURPH DQG 3$5$0
DOJRULWKPV DQG LQIRUPDWLRQ WHFKQRORJ\ 0HLW< ZLOO %LR%OD]H ZLWK KLJK HQG VWRUDJH NQRZQ DV
SURYLGH D IXQGLQJ VXSSRUW RI  ‫  ڎ‬FURUH RYHU D 3$5$0%LREDQN 9DULRXV VRIWZDUH IRU PROHFXODU
SHULRG RI  \HDUV 8QGHU WKLV SURJUDP VXSSRUW LV PRGHOOLQJ DQG JHQRPH DQDO\VLV KDYH EHHQ
SURYLGHGDW6HHG(DUO\WUDQVLWLRQDQGWUDQVLWLRQVWR LQVWDOOHG RQ WKH %5$) FOXVWHUV %5$) LV DOVR
VFDOHVWDJHVRI5 'DQG,QQRYDWLRQF\FOH&XUUHQWO\ HTXLSSHGZLWKKDUGZDUHDFFHOHUDWRUVGHYHORSHGE\
SURMHFWVDUHEHLQJIXQGHGXQGHUWKLVSURJUDPDQG &'$&IRUIHZELRLQIRUPDWLFVVRIWZDUH7KHUHDUHLQ
PRUHKDYHEHHQVHOHFWHGIRUIXQGLQJ KRXVH GHYHORSHG VRIWZDUH·V FRPPRQO\ XVHG
FRPPHUFLDO VRIWZDUH FRPPRQO\ XVHG FKHPLFDO
([SORUDWRU\%OXHVN\UHVHDUFK GDWDEDVHVSRUWHGRQ%5$)2WKHU0HLW<GHYHORSHG
%LRLQIRUPDWLFV DOJRULWKPWRROV DOO KRVWHG DV IUHHZDUH IRU XVH E\

%5$)+DUGZDUH3$5$0%LRJHQH


0LQLVWU\RI(OHFWURQLFV ,QIRUPDWLRQ7HFKQRORJ\ 0HLW<

ELRLQIRUPDWLFVQDWLRQDOFRPPXQLW\ YDULRXV ;4XHU\ LQMHFWLRQ DWWDFNV VXFK DV

7DXWRORJ\LQMHFWLRQ&RPPHQWLQMHFWLRQ&'$7$
5HVHDUFKRQVHFXUHG&\EHUVSDFH
LQMHFWLRQ;0/0HWDFKDUDFWHUVLQMHFWLRQ;0/
&\EHU6HFXULW\5 'LVRQHRIWKHNH\FRPSRQHQWVRI 7DJLQMHFWLRQDQG%OLQGLQMHFWLRQDQGDOVRXVLQJ
FUHDWLQJF\EHUVHFXULW\HFRV\VWHPLQWKHFRXQWU\,W YDULRXV ORJLF DWWDFNV VXFK DV SDUDPHWHU
LVDLPHGDWGHYHORSPHQWDQGHQKDQFHPHQWRIVNLOOV PDQLSXODWLRQ ZRUNÁRZ YLRODWLRQ DQG DFFHVV
DQGH[SHUWLVHLQDUHDVRIF\EHUVHFXULW\E\IDFLOLWDWLQJ FRQWUROYLRODWLRQ
EDVLF UHVHDUFK WHFKQRORJ\ GHPRQVWUDWLRQ DQG
LL +RQH\QHWV\VWHPIRUEURDGEDQGQHWZRUNV
SURRIRIFRQFHSW DQG 5 ' WHVW EHG SURMHFWV
$ KRQH\QHW V\VWHP IRU EURDGEDQG QHWZRUNV
5HVHDUFK DQG GHYHORSPHQW LV FDUULHG RXW LQ WKH
ZDV GHYHORSHG ZLWK D  86% ERRWDEOH QRGHV
WKUXVW DUHDV RI F\EHU VHFXULW\ LQFOXGLQJ D 
KDYLQJ VXSSRUW IRU PXOWLSOH KRQH\SRW VHQVRUV
&U\SWRJUDSK\ DQG FU\SWDQDO\VLV E  1HWZRUN 
3DVVLYH+RQH\SRW$FWLYH+RQH\SRWZLWKPXOWL
6\VWHP6HFXULW\ F 0RQLWRULQJ )RUHQVLFVDQG G 
EURZVHU VXSSRUW 5RXWHU +RQH\SRW :HE
9XOQHUDELOLW\ 5HPHGLDWLRQ  $VVXUDQFH WKURXJK
+RQH\SRW +RQH\SRW DSSOLFDWLRQ E 
V S R Q V R U H G  S U R M H F W V  D W  U H F R J Q L ] H G  5 '
IUDPHZRUN IRU ERWQHW WUDFNLQJ DQG F 
RUJDQL]DWLRQV
GDVKERDUG IRU WKH YLVXDOL]DWLRQ RI DWWDFN GDWD
1HZ SURMHFWV DUH IRUPXODWHG  LQLWLDWHG LQ WKUXVW IURP PXOWLSOH VHQVRUV 7KH 3URWRW\SH VROXWLRQ
DUHDV LGHQWLÀHG RQ FRQWLQXRXV EDVLV WR HQDEOH KDV EHHQ LPSOHPHQWHG ZLWK  QRGHV LQ WKH
HQKDQFHPHQWRIH[SHUWLVHVNLOOVLQ5 'IRUF\EHU QHWZRUN RI IRXU EURDGEDQG VHUYLFH SURYLGHUV
VHFXULW\ $FFRUGLQJO\ 5 ' SURMHFWV LQ WKH DUHD RI DQG DQDO\VLV GDWD LV EHLQJ VKDUHG ZLWK XVHU
&\EHU6HFXULW\KDYHDVSHFLDOIRFXVDQGHPSKDVLV DJHQF\
RQ 5 ' LQIUDVWUXFWXUH FUHDWLRQ FDSDFLW\ EXLOGLQJ
LLL &\EHUIRUHQVLFVWRROV&\EHUIRUHQVLFVWRROV
DQG HQKDQFHPHQW RI VNLOOV DQG H[SHUWLVH LQ WKH
GHYHORSHG HDUOLHU YL] &\EHU&KHFN 9
LQWHUHVW RI D FRQGXFLYH 5 ' HFR V\VWHP LQ WKH
0RELOH&KHFN 9 $GYLN &'5 $QDO\VHU 9
FRXQWU\WRVXSSRUWYLVLRQRIUREXVW'LJLWDO,QGLDDQG
3KRWR([DPLQHU9DQG0XOWLOLQJXDO6HDUFK7RRO
QHHGV RI WKH VRFLHW\ ,Q DGGLWLRQ VSHFLÀF HIIRUWV
KDYHEHHQHQKDQFHGZLWKQHZIHDWXUHV1HZ
KDYHEHHQPDGHWRZDUGVQXUWXULQJLQVWLWXWLRQVDQG
WRROV &\EHU&KHFN/LWH 9  DQG 3RUWDEOH
FDSDFLW\ HQKDQFHPHQW LQ WKH HQWLUH 1RUWK (DVW
)RUHQVLFV 6ROXWLRQ 9O2 /DSWRS 6ROXWLRQ  KDYH
5HJLRQ
EHHQGHYHORSHGDQGSURYLGHGWRXVHUDJHQFLHV
'XULQJ  HIIRUWV LQ WKH RQJRLQJ SURMHFWV IRUWKHLUXVH
KDYHSURJUHVVHGDQGQHZSURMHFWVZHUHIRUPXODWHG
LY  6\VWHP IRU GHWHFWLQJ GLJLWL]HG GRFXPHQW
LQWKHLGHQWLÀHGWKUXVWDUHDV
IUDXGV$V\VWHPKDVEHHQGHYHORSHGWRGHWHFW
&\EHU6HFXULW\5 '3URMHFWV DQG DQDO\]H WKH JHQXLQH DQG FRXQWHUIHLW
L ' H W H F W L R Q  R I  ; 0 /  E D V H G  L Q M H F W L R Q FXUUHQF\XVLQJLGHQWLÀHGIHDWXUHVLQWHUPVRI
YXOQHUDELOLWLHV7KHREMHFWLYHRIWKHSURMHFWLV WKHLU SK\VLFDO REVHUYDWLRQ DQG FRPSXWDWLRQ
WR GHYHORS D WRRO IRU GHWHFWLRQ RI ;0/ EDVHG PRGHO
LQMHFWLRQYXOQHUDELOLW\LQZHEDSSOLFDWLRQV$WRRO Y 0 X O W L  0 R G H O  E U R D G F D V W  D Q D O \ W L F V 
ZDV GHYHORSHG IRU LGHQWLI\LQJ WKH YXOQHUDEOH 'HYHORSPHQW RI DQ LQWHJUDWHG PXOWLPRGH
LQMHFWLRQ SRLQWV WKDW FDQ EH H[SORLWHG XVLQJ


 $QQXDO5HSRUW

EURDGFDVWDQDO\WLFVV\VWHPFRQVLVWLQJRIPXOWL WHFKQLTXHVWRDQDO\VHWKHH[HFXWDEOHFRGHRI
PRGH FRQWHQW DQDO\VLV RI QHZV ZHEVLWHV DQG $QGURLGDSSOLFDWLRQVWRGHWHFWGLIIHUHQWW\SHVRI
WHOHYLVLRQ QHZV FKDQQHO EURDGFDVW E\ WH[W YXOQHUDELOLWLHV
PLQLQJ YLGHR DQDO\WLFV DQG VSHHFKDXGLR
[L  6HFXULW\ DQDO\VLV IUDPHZRUN IRU
YLGHRVHJPHQWVUHODWHGWRLGHQWLÀHGHYHQWVLVLQ
DQGURLGSODWIRUP7KHSURMHFWDLPVWRGHYHORS
SURFHVV
DQ LQYHVWLJDWLRQ IUDPHZRUN IRU DSSOLFDWLRQ
YL  'LJLWDO IRUHQVLF WRROV IRU FORXG ,DDV DQDO\VLV DQG PRGHOLQJ SURSDJDWLRQ RI
,QIUDVWUXFWXUHDVD6HUYLFH $WRROLVEHLQJ PDOLFLRXV DSSOLFDWLRQ ZLWKLQ QHWZRUN RI
GHYHORSHGWRSHUIRUPDFTXLVLWLRQDQGDQDO\VLV LQWHUFRQQHFWHGDQGURLGGHYLFHV
RI GLJLWDO IRUHQVLF HYLGHQFH IURP ,DDV SULYDWH
[LL 3HUVRQLGHQWLÀFDWLRQV\VWHP7KHV\VWHPLV
FORXGFRPSXWLQJHQYLURQPHQW
EHLQJ GHYHORSHG XVLQJ RQOLQH KDQGZULWLQJ IRU
Y L L  0 X O W L P R G D O  F R Q W H [ W  V Z L W F K L Q J  ,QGLDQ ODQJXDJHV QDPHO\ $VVDPHVH DQG
'HYHORSPHQWRIDV\VWHPZLWKIDFHSHULRFXODU +LQGL
DQGLULV UHFRJQLWLRQ DOJRULWKPV WR UHFRJQL]H
[ L L L  6 H F X U L W \  W H V W L Q J  D Q G  Y D O L G D W L R Q
LPDJHV FDSWXUHG LQ ERWK YLVLEOH DQG QHDU
PHWKRGRORJLHVIRUFU\SWRJUDSKLFPRGXOHV
LQIUDUHGGRPDLQLVLQSURJUHVV7KHV\VWHPZLOO
$ SURMHFW LV EHLQJ LPSOHPHQWHG WR HVWDEOLVK
KDYH FDSDELOLW\ IRU FRPELQLQJ LQIRUPDWLRQ
KDUGZDUH DQG VRIWZDUH WHVW SODWIRUPV
REWDLQHG IURP IDFH SHULRFXODU DQG LULV
UHIHUHQFH LPSOHPHQWDWLRQV SURFHVVHV DQG
GHSHQGLQJ RQ WKH TXDOLW\ RI LPDJHV XVLQJ D
SURFHGXUHV IRU YDOLGDWLRQ DQG FHUWLÀFDWLRQ RI
FRQWH[WVZLWFKLQJDOJRULWKP
FU\SWRJUDSKLF DOJRULWKPV DQG FU\SWRJUDSKLF
YLLL ,QWHOOLJHQWDGDSWLYHYLGHRPRQLWRULQJDQG PRGXOHVXVHGLQKDUGZDUHVRIWZDUHSURGXFWV
UHFRUGLQJ V\VWHP $ VPDUW GLJLWDO YLGHR
[LY  0DWFKLQJ QHDULQIUDUHG IDFLDO LPDJHV WR
PRQLWRULQJ DQG UHFRUGLQJ V\VWHP LV EHLQJ
YLVLEOH OLJKW LPDJHV 7KH SURMHFW DLPV WR
GHYHORSHG ZKLFK LV FDSDEOH RI H[WUDFWLQJ
GHYHORSDOJRULWKPVIRUPDWFKLQJQHDULQIUDUHG
GLVSOD\LQJDQGVWRULQJWKHIDFHVRISHRSOHLQ
1,5  WR YLVLEOH OLJKW IDFLDO LPDJHV IRU SHUVRQ
KLJKUHVROXWLRQDQGGLVSOD\DQGVWRUHYLGHRLQ
LGHQWLÀFDWLRQ DFURVV SRVH LOOXPLQDWLRQ DQG
ORZUHVROXWLRQ
UHVROXWLRQ
L[  0XOWLPHGLD IRUJHU\ GHWHFWLRQ V\VWHP
[Y 6ROXWLRQWRGHIHQGFROODERUDWLYHDWWDFNVLQ
7KH V\VWHP LV EHLQJ GHYHORSHG ZKLFK LV
SHHUWRSHHUQHWZRUNV7KHREMHFWLYHRIWKH
FDSDEOH RI D  FODVVLI\LQJ VLQJOH DQG GRXEOH
SURMHFWLVWRGHYHORSDVHFXULW\VROXWLRQWRUHVLVW
FRPSUHVVHGLPDJHVYLGHRVZLWKWKHGHWHFWLRQ
FROODERUDWLYHDWWDFNVE\FROODERUDWLYHHIIRUWVRI
DFFXUDF\ RI DERXW  RYHU SDUWLFXODU
QHLJKERULQJ QRGHV XVLQJ ERWK WUXVW DQG
LPDJHYLGHRGDWDEDVHDQG E WUDFLQJWKHRULJLQ
FU\SWRJUDSKLFPHFKDQLVPV
RILPDJHVYLGHRZLWKWKHGHWHFWLRQDFFXUDF\RI
DERXW [YL 'HIHQFHDJDLQVWDWWDFNVLQYLUWXDOL]DWLRQ
DQGK\SHUYLVRUWHFKQRORJLHV7KHREMHFWLYH
[ ' HWHFWLQJ VHFXULW\ YXOQHUDELOLWLHV LQ
RIWKHSURMHFWLVWRGHYHORSK\SHUYLVRUVHFXULW\
DQGURLG DSSOLFDWLRQV 7KH REMHFWLYH RI WKH
FRPSRQHQWV WR SURYLGH GHIHQVHV DJDLQVW WKH
SURMHFW LV WR GHYHORS QHZ VWDWLF DQDO\VLV
L G H Q W L À H G  U X Q W L P H  D W W D F N V  W R  H Q V X U H


0LQLVWU\RI(OHFWURQLFV ,QIRUPDWLRQ7HFKQRORJ\ 0HLW<

FRQÀGHQWLDOLW\ LQ WKH YLUWXDOL]DWLRQ DQG PDOZDUH FROOHFWLRQ DQDO\VLV DQG SUHYHQWLRQ
K\SHUYLVRU OD\HUV RI FORXG FRPSXWLQJ OHYHUDJLQJELJGDWDDQDO\WLFVIRUVHFXULW\YLGHRDQG
LQIUDVWUXFWXUHV LPDJHIRUHQVLFVWRROV WHFKQLTXHDQGVRFLDOPHGLD
DQDO\WLFV
[YLL 'HWHFWLQJPDOZDUHLQHPEHGGHGV\VWHP
7KH REMHFWLYH RI WKH SURMHFW LV WR FDUU\ RXW  'HVLJQ DQG 'HYHORSPHQW RI D &RPSDFW
UHVHDUFK DQG GHYHORS D VROXWLRQ IRU D  &RVWHIIHFWLYH%UL[0HWHU
GHWHFWLQJPDOZDUHDOUHDG\SUHVHQW EDFNGRRU 
7HFKQRORJ\GHYHORSPHQWLQWKHIRUPRIDSURRIRI
LQ ÀUPZDUH DQG E  PDOZDUH WKDW HQWHUV DW
FRQFHSWIRUPHDVXUHPHQWRIVXFURVHFRQFHQWUDWLRQ
UXQWLPH E\ H[SORLWLQJ WKH YXOQHUDELOLWLHV 7KH
LQWKHV\UXSIRUDSSOLFDWLRQLQVXJDULQGXVWULHVKDV
VROXWLRQ LV SURSRVHG WR EH GHPRQVWUDWHG RQ
EHHQFRPSOHWHG3URWRW\SHVRI%UL[PHWHUEDVHGRQ
62+2 6PDOO 2IÀFH  +RPH 2IÀFH  :L)L
WKH PLFURZDYH WHFKQRORJ\ DV ZHOO DV RQ %RLOLQJ
URXWHUV
3RLQW(OHYDWLRQPHWKRGKDYHEHHQGHYHORSHGDQG
[YLLL  (DUO\ ZDUQLQJ IUDPHZRUN VROXWLRQ WHVWHG
'HYHORSPHQW RI DQ HQKDQFHG QHWZRUN
6RFLHWDO5HDFK5 '
VLWXDWLRQDO DZDUHQHVV SODWIRUP XVLQJ 1HWÁRZ
'16 'RPDLQ1DPH6\VWHP DQG%*3 %RUGHU 0HGLFDO7RROV(TXLSPHQWV 6RIWZDUH
*DWHZD\3URWRFRO DQDO\VLVIRUFURVVFRUUHODWLRQ L  5 H S D L U  R I  0 D L Q W H Q D Q F H  R I  0 H G L F D O
DQGQHWZRUNIRUHQVLFIRUGHWHFWLRQRIPDOZDUHLV (OHFWURQLFV (TXLSPHQW 0HGLFDO (OHFWURQLFV
LQSURFHVV /DERUDWRULHV IRU UHSDLU DQG PDLQWHQDQFH RI
[L[ 2SLQLRQPLQLQJDQGVHQWLPHQWDQDO\VLVRI PHGLFDO HOHFWURQLF HTXLSPHQW DQG WUDLQLQJ RI
VRFLDO PHGLD FRQWHQW 7KH REMHFWLYH RI WKH PHGLFDODQGSDUDPHGLFDOSHUVRQQHOKDYHEHHQ
SURMHFW LV WR EXLOG D VHQWLPHQW DQDO\VLV HVWDEOLVKHG DW 1,(/,7 6KLOORQJ DQG 1,(/,7
IUDPHZRUNZKLFKZLOOJUDGHVHQWLPHQWOHYHORI .RKLPD7KH0HGLFDO(OHFWURQLFV/DEKDVEHHQ
VRFLDO PHGLD FRQWHQW IRU DVVHVVLQJ VHFXULW\ VHW XS DQG WUDLQLQJ RI  FDQGLGDWHV 1,(/,7
LVVXHV 6KLOORQJ ²  1,(/,7 .RKLPD  DQG 3DUD
PHGLFDO6WDII KDVEHHQFRPSOHWHG%\YLUWXH
[[ $QWL6SDP&RRUGLQDWLRQ&HQWUH7KHFHQWUH
RIWKHWUDLQLQJVRPHRIWKHSDUWLFLSDQWVKDYHJRW
DLPV WR GHYHORS D IUDPHZRUN IRU FROOHFWLRQ
HPSOR\PHQW
DQDO\VLV DQG H[FKDQJH RI LQIRUPDWLRQ DERXW
VSDP PDLOV 6SDP PDLOV FROOHFWHG ZLOO EH LL &RPSXWHU $LGHG 'HWHFWLRQ 6\VWHP IRU
DQDO\VHGWRÀQGRXWWKHRULJLQRIVXFKPDLOVDQG 0DPPRJUDPV 7KH V\VWHP GHYHORSPHQW
FODVVLÀHGLQWRFDWHJRULHV KDYHEHHQFRPSOHWHGDQGWULHGRQSDWLHQWVIRU
VFUHHQLQJ RI EUHDVW FDQFHU 6\VWHP KDV EHHQ
3URSRVHGHIIRUWVGXULQJ
GHSOR\HG DW 5HJLRQDO &DQFHU &HQWUH
7KH 5 ' DFWLYLWLHV LQ WKH SURJUDP ZLOO EH FDUULHG 7ULYDQGUXP7HFKQRORJ\WUDQVIHUDFWLYLWLHVKDYH
IRUZDUG GXULQJ  WR SURPRWH UHVHDUFK DQG EHHQLQLWLDWHGE\LQYLWLQJH[SUHVVLRQRILQWHUHVW
GHYHORSPHQW RI LQGLJHQRXV F\EHU VHFXULW\
LLL ' L D E H W L F  5 H W L Q R S D W K \  , G H Q W L À F D W L R Q
VROXWLRQVSURRIRIFRQFHSWVDQGSURWRW\SHVLQWKH
6RIWZDUH 6\VWHP GHYHORSPHQW KDV EHHQ
WKUXVWDUHDVRIF\EHUVHFXULW\HVSHFLDOO\LQDUHDVRI
FRPSOHWHG 7KH GHYHORSHG V\VWHP ZDV ÀHOG
FORXGVHFXULW\,R7VHFXULW\PRELOHGHYLFHVHFXULW\


 $QQXDO5HSRUW

WHVWHG WKURXJK  UHWLQD LPDJHV RI  SURJUHVV 9DULRXV VXE V\VWHPV KDYH EHHQ
SDWLHQWV 7KH WHFKQRORJ\ WUDQVIHU DFWLYLW\ KDV GHVLJQHGIDEULFDWHGDQGDUHEHLQJWHVWHG
EHHQLQLWLDWHGE\LQYLWLQJH[SUHVVLRQRILQWHUHVW
YLL  'HVLJQ  'HYHORSPHQW RI ,QGLJHQRXV
LY /HXNRDQDO\VHU $ SURWRW\SH *UDSKLFDO 8VHU &RORXU 'RSSOHU 8OWUDVRXQG 6FDQQHU ZLWK
,QWHUIDFH *8, IRUDQDXWRPDWHGWRROKDVEHHQ FHQWUDOLVHG 31'7 GDWDEDVH FRPSOLDQFH
GHYHORSHG 'DWDEDVH IRU GDWDVHW RI  ,QGLJHQRXV&RORU'RSSOHU8OWUDVRXQG6FDQQHU
QRUPDO DQG  PDOLJQDQW FHOOV KDYH EHHQ LVWDUJHWHGIRUGHYHORSPHQW6SHFLÀFDWLRQVIRU
GHYHORSHGDQGH[WUDFWLRQRIIHDWXUHVIURPWKHVH XOWUDVRXQG UHVHDUFK SODWIRUP KDV EHHQ
GDWDVHWV LV SURJUHVVLQJ 3UHOLPLQDU\ 5DQGRP UHYLHZHG DQG ÀQDOLVHG E\ H[SHUWV DQG
)RUHVW &ODVVLÀHU KDV EHHQ GHYHORSHG IRU VFKHPDWLF IRU 8OWUDVRXQG WUDQVPLWWHU DQG
FODVVLÀFDWLRQRIFHOOV UHFHLYHUHOHFWURQLFV SULQWHG FLUFXLW ERDUG KDYH
EHHQ FRPSOHWHG 3&% GHVLJQ KDV EHHQ
Y 'HVLJQ DQG 'HYHORSPHQW RI  7HVOD
FRPSOHWHGIRUXOWUDVRXQGSUREH
0DJQHWLF 5HVRQDQFH ,PDJLQJ 05, 
6\VWHPV)RU0HGLFDO,PDJLQJWKH7HFKQLFDO YLLL  6WXGLHV RQ GHWHFWLRQ RI FDQFHU
'HVLJQ 5HSRUW ZLWK WKH VSHFLÀFDWLRQ RI S U R F H V V L Q J  L Q I U D U H G  L P D J H V  D Q G
VXSHUFRQGXFWLQJ PDJQHW DQG UHTXLUHG GHYHORSLQJ DSSURSULDWH ,QVWUXPHQWDWLRQ
DVVRFLDWHGFRPSRQHQWVKDVEHHQGUDIWHGDQG V\VWHPIRULQLWLDOGHSOR\PHQWLQ1(6WDWHV
LV XQGHU WKH UHYLHZ E\ WKH H[SHUW IRU 'DWDEDVHIRUWKHUPDOLPDJHVZLWKORZUHVROXWLRQ
LPSOHPHQWDWLRQ 7KH *UDSKLFDO 8VHU ,QWHUIDFH FDPHUDKDVEHHQFUHDWHG%DVLFDOJRULWKPIRU
*8,  YHUVLRQ   KDV EHHQ GHYHORSHG DQG GHWHFWLRQRIFDQFHUFHOOVKDVEHHQGHYHORSHG
,PDJH FRQVWUXFWLRQ DOJRULWKPV DUH EHLQJ DQGWHVWHG $QDZDUHQHVVSURJUDPPHLQWKH
GHYHORSHG 6XFFHVVIXO LQWHJUDWLRQ RI YDULRXV IRUP RI %UHDVW &DQFHU 6FUHHQLQJ FDPS ZDV
VXEV\VWHPLH6LJQDO*HQHUDWLRQ6\VWHP RUJDQLVHG DW &DQFHU +RVSLWDO 6LOFKDU /RFDO
: 7UDQVPLWWHU /LQHDU )HHG 7UDQVPLW %LUGFDJH UHVLGHQWVSDUWLFLSDWHGLQWKHSURJUDPPH
KHDG&RLO5HFHLYH6XUIDFH&RLO5HFHLYHU)URQW
L[ (OHFWURQLF +HDOWK 5HFRUG (+5  6\VWHP
(QG DQG 'LJLWDO 5HFHLYHU ZLWK WUXWKIXO
&OLQLFDO5HFRUG,QWHJUDWLRQ3ODWIRUPSRZHUHGE\
UHSURGXFWLRQ RI WKH IHG )UHH ,QGXFWLRQ 'HFD\
& '$& V 'LVWULEXWHG +HDOWKFDUH 6WRUH
),' VLJQDOKDVEHHQFRPSOHWHG
WHFKQRORJ\ '+6  KDV EHHQ GHSOR\HG DW -DL
YL +LJK HQHUJ\  0H9 OLQHDU DFFHOHUDWRU 3UDNDVK 1DUD\DQ $SH[ 7UDXPD &HQWUH
/,1$&  7KH H[LVWLQJ /,1$& WXEH KDV EHHQ -31$7&  $,,06 1HZ 'HOKL 7KH '+6
SURYLGHGZLWKDFFHOHUDWLQJVWUXFWXUH(OHFWURQLF WHFKQRORJ\EULQJVDOOUHOHYDQWFOLQLFDOGDWDIURP
*XQ IRU .9 WULRGH KDV EHHQ GHVLJQHG GLIIHUHQW V\VWHPV DQG FRQVROLGDWHV WKHP LQWR
GHYHORSHG DQG EHLQJ WHVWHG 7DUJHW ZDWHU VLQJOH YLHZDEOH (+5 &'$& 3XQH KDV
FRROLQJKDVEHHQUHGHVLJQHGWRGLVVLSDWHXSWR FRPSOHWHG WUDLQLQJ DQG GHPRQVWUDWLRQ RI
.:SRZHU%HQGLQJPDJQHWZLWK2QH'LSROH GHSOR\HG'+6V\VWHPDW$,,06-31$7&1HZ
'HJUHHKDVEHHQGHYHORSHG7KHFRLOVDQG 'HOKL
YDFXXP FKDPEHU GHVLJQ LV LQ ÀQDO VWDJH
[ &HUWLÀFDWLRQ6FKHPHVIRU&RPSOLDQFHZLWK
3URFXUHPHQWRISRZHUVXSSO\IRUHOHFWURQJXQRI
(+5 6WDQGDUGV 7KLV SURMHFW ZLOO LPSOHPHQW
N9 IRU.O\VWURQZLWKGXW\F\FOHLVLQ


0LQLVWU\RI(OHFWURQLFV ,QIRUPDWLRQ7HFKQRORJ\ 0HLW<

VWDQGDUGL]HG (OHFWURQLF +HDOWK 5HFRUG DW VKRZLQJJRRGFRUUHODWLRQZLWKWKHKRVSLWDOGDWD

1DWLRQDO6WDWHOHYHOIRUH*RYHUQDQFHLQ+HDOWK
LL 5 H S D L U  R I  0 D L Q W H Q D Q F H  R I  0 H G L F D O
&DUH6HFWRU,WZLOODOVRKHOSSXEOLFDQGSULYDWH
( O H F W U R Q L F V  ( T X L S P H Q W   $  0 H G L F D O
KHDOWKFDUH RSHUDWRUV WR EHFRPH FRPSOLDQW WR
(OHFWURQLFV /DERUDWRU\ IRU UHSDLU D QG
QRWLÀHG(+5VWDQGDUGVRI0LQLVWU\RI+HDOWK 
PDLQWHQDQFHRI0HGLFDO(OHFWURQLF(TXLSPHQW
)DPLO\ :HOIDUH &'$& KDV SURFXUHG  ,62
KDVEHHQHVWDEOLVKHGDW1,(/,76LOFKDU$VVDP
6WDQGDUGV DQG GHYHORSPHQW RI 6WDQGDUGV
IRU XQGHUWDNLQJ UHSDLU DQG PDLQWHQDQFH RI
&RPSOLDQFH $VVHVVPHQW PHWKRGRORJLHV KDYH
0HGLFDO (OHFWURQLFV HTXLSPHQWV RI YDULRXV
EHHQFRPSOHWHGIRUVWDQGDUGV
KRVSLWDOV LQ $VVDP 3URFXUHPHQW RI FDSLWDO
[L 3 HUVRQDO +HDOWK 5HFRUG 0DQDJHPHQW HTXLSPHQWKDVEHHQLQLWLDWHG
6\VWHP 3+506 ,WLV$DGKDUHQDEOHGFORXG
LLL 0 D[LOOR)DFLDO 6XUJHU\ 3ODQQLQJ DQG
EDVHG DSSOLFDWLRQ ZKLFK KDV EHHQ GHVLJQHG
6LPXODWLRQ6\VWHPDUHOLDEOH FRVWHIIHFWLYH
DIWHU WDNLQJ LQSXWV IURP LQGXVWU\ H[SHUWV
SODQQLQJ DQG VLPXODWLRQ V\VWHP IRU PD[LOOR
PHGLFDO SUDFWLWLRQHUV DQG UHVHDUFKHUV LQ WKH
IDFLDO VXUJHU\ ZKLFK HQDEOHV SUHFLVH '
KHDOWKLQIRUPDWLFVGRPDLQ,WFDQVWRUH3HUVRQDO
FHSKDORPHWULF DQDO\VLV DQG LQWHUDFWLYH
+HDOWKUHFRUGRIDQLQGLYLGXDO8VHUVFDQVWRUH
P D Q L S X O D W L R Q V  R I  W K U H H  G L P H Q V L R Q D O
UHSRUWV GLDJQRVWLFV ZKLFK DUH DFFHVVLEOH E\
UHFRQVWUXFWLRQ RI WKH IDFLDO WLVVXHV LQ RUGHU WR
LQGLYLGXDOGRFWRU IRU RQOLQH FRQVXOWDWLRQ DQG
Y L V X D O L ] H  W K H  S D W L H Q W V  S R V W R S H U D W L Y H
SUHVFULSWLRQ7KHV\VWHPKDVEHHQGHYHORSHG
DSSHDUDQFH 7KH VRIWZDUH V\VWHP ZLOO DOVR
WHVWHGDQGGHSOR\HGRQFORXG
DUFKLYH HDFK SDWLHQW FDVH LQ V\VWHPDWLF
7KHIROORZLQJQHZSURMHFWVKDYHEHHQLQLWLDWHG GDWDEDVHZKLFKZLOOVHUYHDVIXWXUHUHIHUHQFH
GXULQJWKHFXUUHQW\HDU DQGDOVRHGXFDWLRQDOSXUSRVHV7KHSURMHFWKDV
MXVWEHHQLQLWLDWHG
L  'HVLJQ  'HYHORSPHQW RI ´2OIDFWRU\
6HQVLQJ6\VWHPIRU%LRPHGLFDO$SSOLFDWLRQ +HDOWKFDUH
² VWXG\ DQG SURWRW\SH GHYHORSPHQWµ
L  'HYLFHIRUYLVXDOGHWHFWLRQRI%LOLUXELQIRU
2OIDFWRU\V\VWHPZLOOEHD1RQLQYDVLYHPHWKRG
+HSDWLWLVSDWLHQWVGHYHORSHGDW,,7*XZDKDWL
IRUHDUO\GHWHFWLRQRIGLDEHWHV'DWDFROOHFWLRQ
IURP0HGLFDO&ROOHJHKDVEHHQFRPSOHWHGDQG 7KHQDQRSDUWLFOHEDVHGSRLQWRIFDUHWHVWLQJGHYLFH
([SHULPHQWDWLRQ KDV EHHQ VWDUWHG  'HVLJQ LVFDSDEOHRIGHWHFWLQJWKHELRPDUNHUELOLUXELQIRU
GRFXPHQWIRU+DUGZDUH6RIWZDUHUHTXLUHGKDV WKH GHWHFWLRQ RI +HSDWLWLV V\QGURPH RI D SDWLHQW
EHHQSUHSDUHG1HFHVVDU\VHQVRUVKDYHEHHQ 7KH GHYLFH LV FDSDEOH RI GHWHFWLQJ WKH PHDJUH
LGHQWLÀHGDQGSURFXUHG,QLWLDOSURWRW\SHV\VWHP DPRXQWRIELOLUXELQSUHVHQWRQWKHVNLQGXULQJWKH
KDVEHHQGHYHORSHGODERUDWRU\WHVWHGDQGLWLV GLVHDVHGVWDWHWKURXJKDFRORULPHWULFFKDQJHLQWKH
EHLQJWHVWHGZLWKWKHSDWLHQWGDWDUHFRUGIURP VLJQDOZKHQWKHWKXPELPSUHVVLRQVDUHWDNHQ
&DOFXWWD 0HGLFDO &ROOHJH ,QLWLDO UHVXOWV DUH


 $QQXDO5HSRUW

LL $ NLGQH\IXQFWLRQWHVW NLW WR LGHQWLI\ WKH 3KRWRGHWHFWRUV FRQYHUWV WKH TXDQWLÀDEOH RSWLFDO
DOEXPLQ WR FUHDWLQLQH UDWLR IRU WKH GLDEHWLF VLJQDO WUDQVPLWWHG WKURXJK WKH UHDJHQW FRDWHG
SDWLHQWVGHYHORSHGDW,,7*XZDKDWL VXEVWUDWHGHWHFWLRQXQLWSODFHGLQWKHVDPSOHVWDJH
WR HOHFWULFDO VLJQDOV $ VLJQDO SURFHVVLQJ XQLW
7KH NLW KDV EHHQ GHYHORSHG IRU WKH SRLQWRIFDUH
FRQQHFWHG WR WKH VDLG RSWLFDO WUDQVPLWWDQFH XQLW
TXDQWLÀFDWLRQRIDOEXPLQWRFUHDWLQLQHUDWLR $&5 LQ
WUDQVGXFHV WKH DQDORJXH HOHFWULFDO VLJQDO LQWR WKH
WKHXULQHRIRSWLFDOWUDQVPLWWDQFHXQLWVDQGDVLJQDO
GLJLWDOGLVSOD\VLJQDO7KHVLPSOHVLQJOHVWHSFRVW
SURFHVVLQJXQLW7KHGHYLFHLVFRPSRVHGRIDSDLURI
HIIHFWLYHHDVLO\GLVSRVDEOHV\VWHPNLWLVXVHIXOIRU
VWDJHVVXSSRUWLQJDGHWHFWLRQXQLWDSDLURIVDPSOH
SRLQWRIFDUHGHWHFWLRQRI$&5LQXULQHVDPSOH
VWDJHV LQWHJUDWHG ZLWK WKH OLJKW VRXUFHV


0LQLVWU\RI(OHFWURQLFV ,QIRUPDWLRQ7HFKQRORJ\ 0HLW<

LLL $  OXQJIXQFWLRQ PRQLWRULQJ GHYLFH IRU RIKXPLGLW\OHYHOLQWKHH[KDOHGDLURIDKXPDQZKLOH

DVWKPDSDWLHQWVGHYHORSHGDW,,7*XZDKDWL EUHDWKLQJRXWDQGWKHUHIURPGHWHFWFRQGLWLRQRIWKH
KXPDQ OXQJV LQ UHDO WLPH 7KH SUHVHQW /XQJ
7KH LQYHQWLRQ UHODWHV WR OXQJ IXQFWLRQVWDWXV
FRQGLWLRQ PRQLWRULQJ GHYLFH LV SRUWDEOH DQG
FRQGLWLRQPRQLWRULQJ0RUHVSHFLÀFDOO\WKHSUHVHQW
DGYDQWDJHRXVO\ DGDSWHG WR RSHUDWH DV SRLQWRI
LQYHQWLRQ LV GLUHFWHG WR GHYHORS D /XQJ FRQGLWLRQ
FDUHWHVWLQJJDGJHWVRUGHYLFHVIRUFKHFNLQJÀWQHVV
PRQLWRULQJGHYLFHZLWKQDQRSDUWLFOHEDVHGKXPLGLW\
RIWKHOXQJVRIDSHUVRQ
VHQVRUFRQÀJXUHGIRUSHUIRUPLQJXOWUDIDVWGHWHFWLRQ

7KH SUHVHQW /XQJ FRQGLWLRQ PRQLWRULQJ GHYLFH LV PDJQHWLF QDQRSDUWLFXODWHV IRU FDQFHU DW ,,7
DOVRFDSDEOHRIZLUHOHVVGDWDWUDQVIHUWRDSHULSKHUDO %RPED\  WKHUPR DQG S+VHQVLWLYH OLSLGV
FRPSXWLQJ GHYLFH OLNH VPDUW PRELOH SKRQH YLD GHQGULPHUV ELRGHJUDGDEOH SRO\PHUV DQG
¶%OXHWRRWK·FRQQHFWLYLW\IRUVKRZLQJWHVWUHVXOWVRQ K\GURJHOV IXQFWLRQDOL]HG PDJQHWLF QDQRSDUWLFOHV
WKH PRELOH SKRQH GLVSOD\ ZLWK WKH KHOS RI DQ DQG WKHLU VXVSHQVLRQV KDYH EHHQ GHYHORSHG IRU
DSSOLFDWLRQ GHYHORSHG IRU WKH RSHQ VWDQGDUG FRPELQHG WKHUDS\ LQYROYLQJ FKHPRWKHUDS\ DQG
RSHUDWLQJV\VWHP K\SHUWKHUPLD 7KHVH PXOWLIXQFWLRQDO IRUPXODWLRQV
DOORZHGFRQMXJDWLRQRIPXOWLSOHGUXJVDQGDFKLHYHG
8QGHUWKHSURMHFW´'HYHORSPHQWRI0XOWLIXQFWLRQDO
HQKDQFHGVSHFLÀFLW\LQWDUJHWHGWKHUDSHXWLFVDORQJ


 $QQXDO5HSRUW

ZLWKWKHUPDOWKHUDS\WRZDUGVFDQFHUWUHDWPHQWDQG DZLGHUDQJHRIHOHFWULFDODQGHOHFWURQLFGHYLFHV(
PLQLPL]HWKHGUXJUHVLVWDQFHLQWDUJHWVLWH ZDVWHFRQWDLQVERWKWR[LFDQGYDOXDEOHPDWHULDOV
7KH WR[LF PDWHULDOV FUHDWH KHDOWK KD]DUGV DQG
$ VWDUWXS FRPSDQ\ ´3DWK 6KRGKµ KDV EHHQ
HQYLURQPHQWDO LVVXHV 7R DGGUHVV WKLV LVVXH RI
LQFXEDWHGE\D3K'VWXGHQWDW,,6F%DQJDORUHIRU
QDWLRQDO LPSRUWDQFH UHFRYHU\ RI SUHFLRXV PHWDOV
WKHKDQGKHOGGHYLFHIRUPRQLWRULQJEORRGEDVHG
WKURXJK HQYLURQPHQWDOO\ IULHQGO\ IURP 3&% KDG
LQGLFDWRUVIRUGLDEHWHV
EHHQ VXFFHVVIXOO\ DFKLHYHG WKURXJK S\URO\VLV
(ZDVWH5HF\FOLQJ SURFHVV E\ &HQWUH IRU 0DWHULDOV IRU (OHFWURQLFV
L  3LORW 'HPRQVWUDWLRQ RI (ZDVWH 5HF\FOLQJ 7HFKQRORJ\ &0(7  +\GHUDEDG DQG 0V (
)DFLOLW\ DW (3DULVDUD %DQJDORUH  (OHFWURQLFV 3DULVDUDD 3YW /WG %DQJDORUH &XUUHQWO\ FRVW
ZDVWH HZDVWH FRPSULVHVWKHHQGRIOLIHSURGXFWRI HIIHFWLYHLQGLJHQRXVWHFKQRORJ\LVEHLQJGHYHORSHG
IRUFRSSHUUHF\FOLQJDQGUHÀQLQJ

'HPRQVWUDWLRQRIWKHSURWRW\SHIRU3&%VUHF\FOLQJIDFLOLW\
DW&0(7+\GHUDEDGDQG(3DULVDUD%DQJDORUH

LL (OHFWURQLF ZDVWH $ZDUHQHVV SURJUDPPH SUDFWLFHV 6KRUW PRGXOHV DQG ÀOPV KDYH EHHQ
/DFNRIDZDUHQHVVDPRQJVWWKHFLWL]HQVDERXWWKH FUHDWHGIRUVSUHDGLQJJHQHUDODZDUHQHVVDERXWWKH
LOOHIIHFW RI HZDVWH UHF\FOLQJ LQ LQIRUPDO VHFWRU LV KD]DUGVRIWKHUHF\FOLQJPHWKRGVEHLQJXVHGE\WKH
RQH RI WKH VHULRXV FKDOOHQJHV WR RXU VRFLHW\  $Q XQRUJDQL]HG VHFWRU YLVjYLV EHVW SUDFWLFHV
´$ZDUHQHVV3URJUDPPHRQ(QYLURQPHQWDO+D]DUGV DYDLODEOHIRUHQYLURQPHQWDOO\IULHQGO\UHF\FOLQJ7KH
RI(OHFWURQLF:DVWHµKDVEHHQLQLWLDWHGVLQFH0DUFK JHQHUDOSXEOLFZRXOGEHHQFRXUDJHGWRSDUWLFLSDWH
XQGHUWKHDHJLVRI6RIWZDUH7HFKQRORJ\3DUNV LQ´6ZDFKK'LJLWDO%KDUDWµE\JLYLQJWKHLUHZDVWHWR
RI ,QGLD 673,  1HZ 'HOKL WR FUHDWH DZDUHQHVV WKH DXWKRUL]HG UHF\FOHUV RQO\ 'XULQJ WKH HQWLUH
DPRQJ WKH SXEOLF DERXW WKH KD]DUGV RI HZDVWH SURMHFW GXUDWLRQ RI  \HDUV D FLW\ HDFK LQ WKH 
UHF\FOLQJE\WKHXQRUJDQL]HGVHFWRUDQGWRHGXFDWH LGHQWLÀHG 6WDWHV ZRXOG EH FRYHUHG LQ SLORW VWDJH
WKHPDERXWDOWHUQDWHPHWKRGVRIGLVSRVLQJWKHLUH 7KH VWDNHKROGHUV LQYROYHG DUH VFKRROV &ROOHJHV
ZDVWH  7KH SURJUDPPH VWUHVVHV WKH QHHG IRU 5HVLGHQWV·:HOIDUH$VVRFLDWLRQV%XON&RQVXPHUV
DGRSWLQJ HQYLURQPHQW IULHQGO\ HZDVWH UHF\FOLQJ 5HJXODWRU\%RGLHVPHGLDHQJDJHPHQWHWF&RXUVH


0LQLVWU\RI(OHFWURQLFV ,QIRUPDWLRQ7HFKQRORJ\ 0HLW<

FRQWHQW IRU YDULRXV VWDNHKROGHUV GHVLJQLQJ RI H ZKLOH PRELOH DSS FUHDWLRQ VWDNH KROGHU·V
ZDVWH PDVFRW FDOOHG ´*UHHQHµ DQG ZHEVLWH FRQVXOWDWLRQDQGLQYHQWRUL]DWLRQVWXG\LVUXQQLQJ
FUHDWLRQ KWWSJUHHQHQHWLQ KDVEHHQFRPSOHWHG


 $QQXDO5HSRUW

$JULFXOWXUH SURWRW\SH RI PRLVWXUH PHWHU KDV EHHQ

GHYHORSHG DQG WHVWHG $Q LPDJH SURFHVVLQJ
L  8WLOL]LQJWKHSURWRW\SLQJIDFLOLW\HVWDEOLVKHGDW,,7
EDVHG V\VWHP LV EHLQJ XSJUDGHG WR GHWHFW
%RPED\RQHRIWKHPDFURQXWULHQWVZLWKFRPSOHWH YDULRXVFKDUDFWHULVWLFVRIULFH
LQVWUXPHQWDWLRQIRU366 SUR[LPDOVRLOVHQVLQJ DQG
LY 'HVLJQ 'HYHORSPHQWRIFRQWLQXRXV)ORZ
13.V\VWHPEDVHGRQVSHFWURVFRS\XVLQJGLVFUHWH
+\GURSRQLF6\VWHP
FRPSRQHQWVDUHSODQQHGWREHGHPRQVWUDWHG
 $XWRPDWLFFRQWLQXRXVÁRZ+\GURSRQLFVV\VWHP
LL *UHHQ 7HFKQRORJ\ EDVHG (OHFWURQLF 0LON ZLWKFRQWLQXRXVPRQLWRULQJDQGSURJUDPPDEOH
$QDO\VHU FRQWURORIS+DQG(OHFWULFDO&RQGXFWLYLW\ (& RI
)RU PHDVXUHPHQW RI IDW VROLG QRQIDWV SURWHLQ VROXWLRQ DORQJ ZLWK 0LFUR DQG 0DFUR QXWULHQW
ODFWRVHZDWHUDQGGHQVLW\LQUDZPLONWKHLQGXVWULDO GLVSHQVLQJV\VWHPKDVEHHQGHYHORSHG7KH
JUDGH SURWRW\SH RI DQ DIIRUGDEOH SRUWDEOH 0LON GHYHORSHGV\VWHPKDVEHHQGHSOR\HGDWWKH'U
$QDO\VHUKDYHEHHQGHYHORSHGDQGWHVWHGLQÀHOG <D V K Z D Q W  6 L Q J K  3D U P D U  8 Q L Y H U V L W \  R I
7KHLQVWUXPHQWZDVH[KLELWHGDW,QGLD,QWHUQDWLRQDO +RUWLFXOWXUH  )RUHVWU\ IRU D \HDU RQ PXOWLSOH
7UDGH )DLU ,,7)   7KLV WHFKQRORJ\ PD\ ÀQG
DSSOLFDWLRQ LQ YLOODJH OHYHO PLON FROOHFWLRQ FHQWUHV
DQGPLONFKLOOLQJFHQWUHV7KHWHFKQRORJ\LVUHDG\
IRUFRPPHUFLDOL]DWLRQ

0LONDQDO\VHU

LLL 6PDUW :DUHKRXVHV ZLWK $SSOLFDWLRQ RI

) U R Q W L H U  ( 0   ( O H F W U R Q L F V  E D V H G FURSV OLNH WRPDWR FDSVLFXP EURFFROL
7HFKQRORJ\ FDXOLÁRZHUDQGVWUDZEHUU\7KHWHFKQRORJ\KDV
EHHQSURSDJDWHGWRIDUPHUV6FLHQWLVWVWKURXJK
 'UDIW'HWDLOHG3URMHFWUHSRUWLGHQWLI\LQJYDULRXV
VHQVRUVFRQWUROOHU KDV EHHQ SUHSDUHG IRU D 1DWLRQDO :RUNVKRS RUJDQLVHG DW WKH
LPSOHPHQWDWLRQ LQ D )&, ZDUHKRXVH 7KH SURSRVHGVLWH


0LQLVWU\RI(OHFWURQLFV ,QIRUPDWLRQ7HFKQRORJ\ 0HLW<

(QYLURQPHQWDO3ROOXWLRQ0RQLWRULQJ (QHUJ\6WRUDJHDQG*HQHUDWLRQ
L  $&2JDVVHQVRUZLWKHOHPHQWDUUD\IRUD ,QWHQVLYH5 'LVEHLQJFDUULHGRXWRQGHYHORSPHQW
SURMHFWHGUDQJHRISSPWRSSPZLWKD RIHQHUJ\VWRUDJHDQGJHQHUDWLRQGHYLFHV,QWKLV
UHVROXWLRQRIDWOHDVWSSPZLWKDWHPSHUDWXUH D U H D   S U R M H F W V  R Q  O L W K L X P  L R Q  E D W W H U \
U D Q J H  R I    R &  W R     R &  D Q G  S R Z H U VXSHUFDSDFLWRUV IXHO FHOOV DQG HQHUJ\ KDUYHVWLQJ
FRQVXPSWLRQ RI OHVV WKDQ  ZDWW KDV EHHQ IURP VHFRQGDU\ VRXUFHV VXFK DV KDUQHVVLQJ RI
GHSOR\HGDWORFDWLRQVLQ%HQJDOXUXFLW\XVLQJ YLEUDWLRQHQHUJ\XVLQJSLH]RPDWHULDOVDUHFXUUHQWO\
(QYLUR0RWHZLUHOHVVVHQVLQJSODWIRUP UXQQLQJ 6RPH WHFKQRORJLHV RI VXSHUFDSDFLWRU
KDYH DOUHDG\ UHDFKHG WHFKQRORJ\ WUDQVIHU VWDJH
LL  1DQRVL]H=Q2DQG6Q2KDYHEHHQGHYHORSHG
DQGGHWDLOVDUHDYDLODEOHLQVHFWLRQVDQG$
XVLQJWKHKHUEDOURXWHIRUVHQVLQJWKH1+12
ODERUDWRU\ KDV EHHQ VHWXS DW &0(7 3XQH IRU
DQG +6 DW 6ULPDKDULVKL ,QVWLWXWH RI 9HGLF
GHYHORSPHQW RI /LLRQ EDWWHU\ 7KH ODERUDWRU\ LV
7HFKQRORJ\*XQWXU$3
FDSDEOHRISURGXFLQJEXWWRQFHOODQGSRXFKSDFNV
LLL 8QGHUWKHSURMHFW´&RVWHIIHFWLYHV\QWKHVLVRI RI /LLRQ EDWWHULHV DQG VXEVHTXHQWO\ WHVW WKHP ,Q
JUDSKHQH DQG PHWDOLQFRUSRUDWHG JUDSKHQH DGGLWLRQ & 0(7 KDV LQLWLDWHG EDVLF 5 '
WKHLU DSSOLFDWLRQ DV VHQVRUV RI HQYLURQPHQWDO SURJUDPPH WR UHF\FOH /L IURP HZDVWH WR FRXQWHU
JDVHVµDW60,76LNNLPKLJKTXDOLW\JUDSKHQH WKHODFNRIWKLVFULWLFDOPLQHUDOLQ,QGLD&RVWHIIHFWLYH
DQGPHWDO ,Q26Q2DQG=Q2 LQFRUSRUDWHG QDQRSDUWLFOHEDVHG)XHO&HOOWHFKQRORJ\LVEHLQJ
JUDSKHQH XVLQJ ORWXV ÁRZHU SHWDOV KDV EHHQ GHYHORSHGMRLQWO\E\&0(7DQG1,7:DUDQJDO
SUHSDUHG IRU VHQVLQJ DSSOLFDWLRQV /DE OHYHO
SURWRW\SH VHQVRUV KDYH EHHQ VXFFHVVIXOO\
IDEULFDWHGIRU1+12DQG&2JDVHV


 $QQXDO5HSRUW

5HKDELOLWDWLRQRI'LY\DQJ y 7 7 6  6 \ V W H P V  I R U  6 0 6  $ S S O L F D W L R Q 
:KDWV$SS (PDLOV DQG :HE %URZVHU LQ
,&7&HQWUHRI([FHOOHQFHRQ7DFWLOH*UDSKLFV7KH
PRELOH GHYLFHV KDV EHHQ PDGH LQ  ,QGLDQ
SURMHFW KDV DSSOLFDWLRQ IRU VRFLDO GHYHORSPHQW RI
ODQJXDJHVQDPHO\+LQGL*XMDUDWL0DUDWKL
' L Y \ D Q J   * U D G H  , ;  1 & ( 5 7  W H [ W E R R N  I R U
0DOD\DODP7DPLO7HOXJXDQG%HQJDOL
0DWKHPDWLFV 6FLHQFHKDYHEHHQFRQYHUWHGLQWR
WDFWLOHIRUPIRUYLVXDOO\FKDOOHQJHG'LY\DQJ6LPLODU LL 2SWLFDO &KDUDFWHU 5HFRJQLWLRQ LQ ,QGLDQ
ZRUNIRU*UDGH;1&(57ERRNLVLQSURJUHVV /DQJXDJHV
/DQJXDJH&RPSXWLQJ 2SWLFDO &KDUDFWHU 5HFRJQLWLRQ IRU  ,QGLDQ
ODQJXDJHV QDPHO\ %HQJDOL 'HYDQDJDUL
L  7H[W7R6SHHFK 776 LQ,QGLDQ/DQJXDJHV
*XUXPXNKL .DQQDGD 0DOD\DODP 7HOXJX 7DPLO
y 'HYHORSPHQW RI 7H[W WR 6SHHFK 6\VWHP $VVDPHVHDQG8UGXODQJXDJHVKDYHEHHQPDGH
776 LQWHJUDWHGZLWKVFUHHQUHDGHULQ,QGLDQ DYDLODEOHWKURXJK7',/'DWD&HQWUHKWWSZZZWGLO
/DQJXDJHV GFLQ2&5VIRUVHYHQ,QGLDQ/DQJXDJHVQDPHO\
 8QGHU WKH FRQVRUWLXP PRGH SURMHFW 7H[W WR $VVDPHVH %DQJOD *XUXPXNKL 'HYDQDJDUL
6SHHFK 6\VWHP IRU  ,QGLDQ /DQJXDJHV .DQQDGD 0DOD\DODP 7DPLO DUH EHLQJ PDGH
QDPHO\+LQGL%HQJDOL0DUDWKL7DPLO7HOXJX DYDLODEOHLQ&'V3HQ'ULYHZLWKELOLQJXDO*8,
0DOD\DODP *XMDUDWL 2GLD $VVDPHVH LLL 2QOLQH +DQGZULWLQJ UHFRJQLWLRQ V\VWHP
0DQLSXUL .DQQDGDKDVEHHQGHYHORSHGXVLQJ 2+:5 
IXOO\2SHQ6RXUFHHQJLQHV
$OSKDYHUVLRQ2QOLQH+DQGZULWLQJ5HFRJQLWLRQLQ
y 7HFKQRORJ\7UDQVIHU DQG 776LQWHJUDWLRQZLWK ,QGLDQ /DQJXDJHV QDPHO\ +LQGL %HQJDOL 7DPLO
0RELOHGHYLFHV 7HOXJX .DQQDGD 0DOD\DODP $VVDPHVH DQG
y ,QWHJUDWLRQ RI 776 LQ 0RELOH 'HYLFHV ZLOO 3XQMDEL ODQJXDJHV KDYH EHHQ GHYHORSHG 7KHVH
HQDEOH D ODUJH VHFWLRQ RI WKH VRFLHW\ WHFKQRORJLHVKDYHDOVREHHQSDFNDJHGDV´6PDUW
SDUWLFXODUO\UXUDODQG7LUH 7LHU&LWLHVWR ,QSXW3DQHOVµIRUGDWDHQWU\LQWRDQ\DFWLYHVRIWZDUH
KDYH YRLFH EDVHG LQIRUPDWLRQ $FFHVV LQ SURJUDPPH  ZLWKRXW XVH RI NH\ERDUG DQG PDGH
,QGLDQ/DQJXDJHV DYDLODEOH IRU $QGURLG DQG ZLQGRZV WKURXJK WGLO
GFLQSRUWDO
y 028KDVEHHQVLJQHGZLWK26/DEV,QGLD3YW
/WG IRU LQWHJUDWLRQ RI WKH 776 LQ  ,QGLDQ LY $XWRPDWLF6SHHFK5HFRJQLWLRQ $65
ODQJXDJHV LQ $QGURLG EDVHG 5HJLRQDO $XWRPDWLF 6SHHFK 5HFRJQLWLRQ $65  IRU
2SHUDWLQJ 6\VWHP ,1'86 26 VR WKDW WKH $JULFXOWXUDO &RPPRGLW\ SULFHV IRU  ,QGLDQ
VDPH PD\ EH DYDLODEOH LQ 0RELOH :LUHOHVV /DQJXDJH QDPHO\ +LQGL %HQJDOL $VVDPHVH
GHYLFHV 7DPLO 7HOXJX DQG 0DUDWKL KDYH EHHQ GHYHORSHG
y 776 KDV EHHQ VXFFHVVIXOO\ LQWHJUDWHG ZLWK 7KHV\VWHPVZRXOGDFWDVYRLFHLQWHUIDFHIRU1,&
,1'86 26 DQG KDV FXUUHQWO\ EHHQ PDGH $JPDUNQHWSRUWDO KWWSZZZDJPDUNQHWQLFLQ 
DYDLODEOH LQ  PRGHOV RI ,QGLDQ 0RELOH 3LORWGHSOR\PHQWHIIRUWLQFROODERUDWLRQZLWK0LQLVWU\
0DQXIDFWXUHV QDPHO\ 0LFURPD[ 6ZLSH RI$JULFXOWXUHKDVEHHQLQLWLDWHGIRU$65V\VWHPLQ
&HO.RQDQG.DUERQQ7KHPRGHOVZRXOGEH
ODXQFKHGLQPDUNHW


0LQLVWU\RI(OHFWURQLFV ,QIRUPDWLRQ7HFKQRORJ\ 0HLW<

0DUDWKLDQG7DPLOODQJXDJHVIRU0DKDUDVKWUDDQG 0DOD\DODP2GLDDQG*XMDUDWLODQJXDJHVDUHDOVR
7DPLO 1DGX  6SHHFK 5HFRJQLWLRQ 6\VWHPV IRU DYDLODEOHRQWKHSRUWDO
DJULFXOWXUDO FRPPRGLW\ SULFHV DQG ZHDWKHU
6RFLHWDO0LVF
LQIRUPDWLRQV\VWHPIRUPRUH,QGLDQODQJXDJHV
GLDOHFWVKDYHEHHQLQLWLDWHG L  'HYHORSPHQW DQG )LHOG 7HVWLQJ RI 3DQLF
6ZLWFK%DVHG6DIHW\'HYLFHIRU &DUVIRU
Y 0XOWL/LQJXDO%DVLF,QIRUPDWLRQ3URFHVVLQJ
DLGLQJZRPHQ·VVDIHW\
7RROV
 7KHSURMHFWXQGHUWDNHQXQGHU1LUEKD\DIXQGLV
/DFNRIFRQWHQWDQGFRQWHQWFUHDWLRQWRROVLQ,QGLDQ
WRGHYHORSDVDIHW\GHYLFHLQWKHIRUPRIDSDQLF
ODQJXDJHVLVDELJFKDOOHQJH7REULGJHWKLVJDS
EXWWRQZKLFKZKHQLQYRNHGZRXOGWUDQVPLWDQ
ODQJXDJH&'VFRQWDLQLQJYDULRXVVRIWZDUHWRROVOLNH
626 VLJQDO WR SUHGHÀQHG ORFDWLRQV LQFOXGLQJ
/LEUH 2IÀFH 2SHQ 7\SH )RQWV .H\ERDUG 'ULYHUV
3ROLFH XVLQJ  GLDOOLQJ VHUYLFH IRU WKH
)LUHIR[ :HE %URZVHU (PDLOLQJ &OLHQW HWF KDYH
SDVVHQJHUVWUDYHOOLQJWKURXJKSXEOLFWUDQVSRUW
EHHQ UHOHDVHG IRU IUHH SXEOLF XVH IRU DOO 
OLNH &DEV DQG 7D[LV 7KH V\VWHP ZLOO EH
FRQVWLWXWLRQDOO\ UHFRJQL]HG ,QGLDQ ODQJXDJHV
FRPSDWLEOHWRGUDIWVSHFLÀFDWLRQVSUHSDUHGE\
9DULRXV368V%DQNV(GXFDWLRQDO,QVWLWXWLRQVHWF
',076IRU0R57+RUGUDIW$,6 $XWRPRWLYH
DUHXVLQJWKHVHVRIWZDUHWRROVIRUWKHLUGD\WRGD\
,QGXVWU\6WDQGDUGV 3URMHFWKDVEHHQLQLWLDWHG
ZRUNLQJ$VRQGDWHPRUHWKDQODNK&'VKDYH
DQGÀUVWOHYHORISURWRW\SHDV3URRIRI&RQFHSW
EHHQGLVWULEXWHGDQGWKHUHKDYHEHHQDERXW
KDV EHHQ GHYHORSHG DQG EHLQJ WHVWHG LQ
&URUHGRZQORDGV7KHVHVRIWZDUHWRROVFDQDOVREH
ODERUDWRU\
GRZQORDGHGIUHHO\IURPKWWSZZZLOGFLQ
LL 2SHQ VRXUFH &RPSXWHU $LGHG 'HVLJQ
YL / D Q J X D J H  7H F K Q R O R J \  , Q I R U P D W L R Q
&$'  7RROV IRU ZHDYLQJ RI %DQDUDVL
'LVVHPLQDWLRQ 5HSRVLWRU\
6DUHHV
7',/ 'DWD &HQWUH ZZZWGLOGFLQ  SRUWDO SURYLGHV
 $ ORZ FRVW ,&7 WRRO YHUVLRQ, KDV EHHQ
ODQJXDJH WHFKQRORJ\ VHUYLFHV DQG UHVRXUFHV
GHYHORSHG WHVWHG LQ ODERUDWRU\ DQG EHLQJ
GHYHORSHG XQGHU YDULRXV 7',/ SURMHFWV 1/3
GHSOR\HG DW  ORFDWLRQV LQ :HDYHU 6HUYLFH
D S S O L F D W L R Q V   V X F K  D V   0 $ 7  : H E 2 & 5 
&HQWUH &RPPXQLW\ 6HUYLFH &HQWUH 9DUDQDVL
,QGR:RUG1HW +LQGL:RUGQHW *ORVVDU\ WRRO
IRUÀHOGWHVW/DWHULWPD\EHXVHGE\WKHORFDO
87556 6DQVNULW 1/3 WRROV 6DQVNULW (OHDUQLQJ
ZHDYHUVDUWLVDQV
DSSOLFDWLRQ6DQGKDQ&/,$7760RELOHEDVHG07
VHUYLFH/306HWFKDYHEHHQKRVWHGRQWKHSRUWDO LLL ( Q K D Q F H G   X V H U I U L H Q G O \  $ G Y D Q F H G
IRU SXEOLF XVH /LQJXLVWLF UHVRXUFHV VXFK DV 7UDYHOOHU,QIRUPDWLRQ6\VWHP $7,6
DQQRWDWHG WH[W DQG VSHHFK FRUSRUD IRU ,QGLDQ  7KHHDUOLHUGHYHORSHGWHFKQRORJ\RI$GYDQFHG
ODQJXDJHVLQWRXULVPGRPDLQKDYHDOVREHHQPDGH 7UDYHOHUV·,QIRUPDWLRQ6\VWHP $7,6 KDVEHHQ
DYDLODEOH WKURXJK WKLV SRUWDO  7H[W WR 6SHHFK HQKDQFHGDQGDXWRGLDJQRVWLFWRROIRU*36 
V\VWHPV DV D EURZVHU SOXJLQ IRU 0R]LOOD DQG & D P H U D V  K D Y H  E H H Q  G H Y H O R S H G   7 K H
&KURPH %URZVHU IRU HLJKW ,QGLDQ /DQJXDJHV FRPPXQLFDWLRQ OLQN EHWZHHQ ,,7 0DGUDV DQG
QDPHO\ +LQGL %HQJDOL 0DUDWKL 7DPLO 7HOXJX &KHQQDL3ROLFH&RPPLVVLRQHURIÀFHKDVEHHQ


 $QQXDO5HSRUW

HVWDEOLVKHGDQGWHVWHG7KHFRPSOHWHV\VWHPLV GUDIWHG DQG GHVLJQ GRFXPHQW KDV EHHQ

EHLQJKDQGHGRYHUWRXVHUDJHQF\WKH&KHQQDL UHYLHZHG3URWRW\SHRI(PHUJHQF\9HKLFOH3UH
7UDIÀF3ROLFHIRUWKHLUUHJXODURSHUDWLRQ7KLVLVD HPSWLRQ (93  V\VWHP XVLQJ DFWLYH 5DGLR
JHQHULFWHFKQRORJ\ZKLFKFRXOGEHUHSOLFDWHG )UHTXHQF\ ,GHQWLÀFDWLRQ 5),'  UHDGHU KDV
LQRWKHUFLWLHV EHHQGHYHORSHGDQGÀHOGWULDOZDVFDUULHGRXW
IRURQHDUPZLWK&'$&7UDIÀFVLJQDOFRQWUROOHU
LY 'HYHORSPHQW RI ,QWHOOLJHQW 7UDQVSRUWDWLRQ
DW 7KLUXYDQDQWKDSXUDP ,QWHUIDFHV IRU 6PDUW
6\VWHP ,76 6ROXWLRQIRU3HGHVWULDQ6DIHW\
FDQH SXVK EXWWRQ YLVXDO LQGLFDWRUV IRU
(QKDQFHPHQW DQG (PHUJHQF\ 6HUYLFH
3HGHVWULDQ 6DIHW\ (QKDQFHPHQW V\VWHP KDYH
9HKLFOH 3ULRULW\ DW 6LJQDOL]HG 7UDIÀF
D O V R  E H H Q  G H Y H O R S H G   , W V  S U R W R W \ S H
-XQFWLRQV
GHYHORSPHQWLVLQSURJUHVV
 6\VWHP5HTXLUHPHQW6SHFLÀFDWLRQVKDYHEHHQ


 &+$37(5
,17(51(7*29(51$1&($1'
6(&85('&<%(563$&(

,QWHUQHW*RYHUQDQFH &RQFHSWXDOO\,QWHUQHW*RYHUQDQFHLQFOXGHVOD\HUV
UHODWLQJWR3K\VLFDO,QIUDVWUXFWXUH&RGHRU/RJLFDO
2YHUYLHZ
OD\HU&RQWHQWOD\HUDQG6HFXULW\
,QWHUQHW *RYHUQDQFH EURDGO\ GHÀQHG LV WKH
,QWHUQHW *RYHUQDQFH LQYROYHV ,QWHUQHW 3URWRFRO
GHYHORSPHQWDQGDSSOLFDWLRQE\*RYHUQPHQWVWKH
$GGUHVVLQJ
SULYDWH VHFWRU DQG FLYLO VRFLHW\ LQ WKHLU UHVSHFWLYH
UROHVRIVKDUHGSULQFLSOHVQRUPVUXOHVGHFLVLRQ ,3 $GGUHVVLQJ  'RPDLQ 1DPH 6\VWHP '16 
PDNLQJSURFHGXUHVDQGSURJUDPVWKDWVKDSHWKH 5RXWLQJ 7HFKQLFDO ,QQRYDWLRQV 6WDQGDUGL]DWLRQ
HYROXWLRQDQGXVHRIWKH,QWHUQHW,WFRYHUVDFWLYLWLHV 6HFXULW\3XEOLF3ROLF\3ULYDF\/HJDO,VVXHV&\EHU
VXFKDVGHYHORSPHQWDQGFRRUGLQDWLRQRIWHFKQLFDO 1RUPV,QWHOOHFWXDO3URSHUW\DQG7D[DWLRQ
VWDQGDUGV RSHUDWLRQ RI FULWLFDO LQIUDVWUXFWXUH DQG
$FKLHYHPHQWV
SXEOLFSROLF\LVVXHV
6RPH RI WKH VLJQLÀFDQW DFKLHYHPHQWV RI 0HLW<


 $QQXDO5HSRUW

LQFOXGH UHSUHVHQWDWLRQ RI ,QGLD·V 3XEOLF 3ROLF\ ,QGLD RQ YDULRXV LQWHUQDWLRQDO IRUXPV
&RQFHUQVRQJOREDOSODWIRUPVFUHDWLQJDZDUHQHVV GLVFXVVLRQVFDQEHDFFHVVHGDWZZZLQGLDLJLQ
RQ ,QWHUQHW *RYHUQDQFH HQFRXUDJLQJ JUHDWHU
LLL ,*)  7KH ,QWHUQHW *RYHUQDQFH )RUXP ,*) 
SDUWLFLSDWLRQ LQ ,QWHUQHW (QJLQHHULQJ 7DVN )RUFH
VHUYHV WR EULQJ SHRSOH WRJHWKHU IURP YDULRXV
,(7)  :RUNLQJ JURXSV DQG HQJDJHPHQW ZLWK
VWDNHKROGHU JURXSV DV HTXDOV LQ GLVFXVVLRQV
,QWHUQHW6RFLHW\ ,62& SURPRWLRQRI0XOWLVWDNHKROGHU
RQSXEOLFSROLF\LVVXHVUHODWLQJWRWKH,QWHUQHW
PRGHORI,QWHUQHW*RYHUQDQFHZLWKLQ,QGLDHWF
,QGLD·VFRQFHUQVRQWKHLVVXHVRISXEOLFSROLF\
 (QJDJHPHQW LQ ,QWHUQDWLRQDO )RUXPV R Q  , Q W H U Q H W  D Q G  L W V  * R Y H U Q D Q F H  D U H
0HHWLQJV DSSURSULDWHO\YRLFHGLQWKHPHHWLQJVRIWKH,*)
WKURXJK UHJXODU SDUWLFLSDWLRQ PXOWLODWHUDO DQG
L ,&$11  0HHWLQJ ,QGLD KRVWHG WKH WK
ELODWHUDO PHHWLQJV :LWK WKH UHQHZDO RI LWV
PHHWLQJ RI ,QWHUQHW &RUSRUDWLRQ RI $VVLJQHG
PDQGDWHE\8QLWHG1DWLRQVLQ'HFHPEHU
1DPH DQG 1XPEHUV ,&$11  LQ +\GHUDEDG
WKH,*)FRQVROLGDWHVLWVHOIDVDSODWIRUPWREULQJ
7HODQJDQDIURP1RYHPEHU,&$11
SHRSOH WRJHWKHU IURP YDULRXV VWDNHKROGHU
PHHWLQJDW+\GHUDEDGLVWKHÀUVWSXEOLFPHHWLQJ
JURXSVDVHTXDOV:KLOHWKHUHLVQRQHJRWLDWHG
DIWHU 86 *RYHUQPHQW KDV WUDQVIHUUHG LWV
RXWFRPH WKH ,*) LQIRUPV DQG LQVSLUHV WKRVH
VWHZDUGVKLSRYHU,&$11·V,$1$IXQFWLRQVWRD
ZLWKSROLF\PDNLQJSRZHULQERWKWKHSXEOLFDQG
PXOWLVWDNHKROGHU FRPPXQLW\ RQ 2FWREHU 
SULYDWH VHFWRUV $W WKHLU DQQXDO PHHWLQJ
 ,&$11 KDG D UHFRUG DWWHQGDQFH RI
GHOHJDWHV GLVFXVV H[FKDQJH LQIRUPDWLRQ DQG
 SDUWLFLSDQWV RI ZKLFK DERXW WZRWKLUGV
VKDUHJRRGSUDFWLFHVZLWKHDFKRWKHU7KH,*)
ZHUH IURP $VLD DQG D WKLUG ZDV ,QGLDQ
IDFLOLWDWHVDFRPPRQXQGHUVWDQGLQJRQKRZWR
SDUWLFLSDWLRQ7KHPHHWLQJZDVDOVRVLJQLÀFDQW
PD[LPL]H ,QWHUQHW RSSRUWXQLWLHV DQG DGGUHVV
DV ,QGLD KDV WKH VHFRQG ODUJHVW XVHU EDVH RI
ULVNVDQGFKDOOHQJHVWKDWDULVH
,QWHUQHW DQG UHÁHFWV WKH FRXQWU\·V GHVLUH WR
GHHSHQ LWV HQJDJHPHQW LQ WKH JOREDO LQWHUQHW LY 0XOWLVWDNHKROGHU &RQVXOWDWLRQV ,QGLD KDV
SROLF\PDNLQJSURFHVV VXSSRUWHG WKH PXOWLVWDNHKROGHU PRGHO RI
,QWHUQHW *RYHUQDQFH ZKLFK LQYROYHV DOO
LL (QJDJHPHQW ZLWK ,&$11 0HLW< LV DFWLYHO\
VWDNHKROGHUV DQG KHOSV WR SUHVHUYH WKH
LQYROYHG ZLWK WKH DFWLYLW\ RI ,&$11 ,QWHUQHW
FKDUDFWHURIWKH,QWHUQHWDVDXQLÀHGG\QDPLF
&RUSRUDWLRQ IRU $VVLJQHG 1DPHV DQG
HQJLQH IRU LQQRYDWLRQ DQG HQFRXUDJHV HTXLW\
1XPEHUV  DQG SDUWLFLSDWHV LQ LWV SURFHHGLQJV
DQGLQFOXVLRQ
WKURXJK *$& *RYHUQPHQWDO $GYLVRU\
&RPPLWWHH DQGRWKHUSXEOLFHQJDJHPHQWIRUD  7KH 5HVHDUFK 'HYHORSPHQW DQG
*$& VNH\UROHLVWRSURYLGHDGYLFHWR,&$11RQ DZDUHQHVVDJHQGDWKDWKDYHEHHQXQGHUWDNHQ
LVVXHV RI SXEOLF SROLF\ DQG HVSHFLDOO\ ZKHUH LQWKHDUHDRI,QWHUQHW*RYHUQDQFHLQFOXGH
WKHUHPD\EHDQLQWHUDFWLRQEHWZHHQ,&$11 V
D  &DSDFLW\ 'HYHORSPHQW 3URJUDP IRU
DFWLYLWLHV RU SROLFLHV DQG QDWLRQDO ODZV RU
,QFUHDVHG ,QGLD·V 3DUWLFLSDWLRQ LQ ,(7) E\
LQWHUQDWLRQDO DJUHHPHQWV $ :RUNVKRS RQ
,QWHUQHW6RFLHW\.RONDWD&KDSWHU
´(QJDJLQJ ZLWK ,&$11µ ZDV KHOG GXULQJ
0D\  LQ 1HZ 'HOKL 7KH FRPPHQWV RI  7KHREMHFWLYHRIWKHFDSDFLW\GHYHORSPHQWLVWR
H[SRVH DQG HQFRXUDJH SDUWLFLSDWLRQ LQ WKH


0LQLVWU\RI(OHFWURQLFV ,QIRUPDWLRQ7HFKQRORJ\ 0HLW<

,QWHUQHW(QJLQHHULQJ7DVN)RUFH ,(7) SURFHVVHV ‡ &RQGXFWLQJ7L6&+ZRUNVKRSVWRKLJKOLJKWWKH

DFURVV,QGLDDQGWRFUHDWHFRQQHFWLRQVEHWZHHQ YDULRXVDFWLYLWLHVRIWKH,(7):RUNLQJ*URXSDQG
QHZ DQG HVWDEOLVKHG RSHQ ,QWHUQHW VWDQGDUGV GHPRQVWUDWH WKH ZRUNLQJ LPSOHPHQWDWLRQ RI
GHYHORSHUV$ZDUHQHVVFDPSVDQGVHPLQDUVDUH UHODWHG,(7)VWDQGDUGVWRHQKDQFHDGRSWLRQRI
F R QGXFWHG  W R  S U R Y L G H  D Z D U H Q H V V  D Q G WKHVDPH
RSSRUWXQLWLHV IRU IHOORZV WR SDUWLFLSDWH LQ WKH
F  $Q (FRV\VWHP IRU $FWLYH 3DUWLFLSDWLRQ LQ
JOREDO ,QWHUQHW HFRV\VWHP DQG DOVR WR LQWHUDFW
, Q W H U Q H W  6 W D Q G D U G  2 U J D Q L ] D W L R Q V
DQGHQJDJHZLWKWKHEURDGHU,QWHUQHWHQJLQHHULQJ
LPSOHPHQWLQJ E\ &HQWUH IRU 'HYHORSPHQW
FRPPXQLW\7KHOLQNKWWSZZZLLFERUJSURYLGHV
R I  $ G Y D Q F H G  & R P S X W L Q J &  ' $ & 
WKHGHWDLOVRIWKHDFWLYLWLHV
%DQJDORUH
E  :LUHOHVV ,QWHUQHW 3URWRFRO HQDEOHG WLPH
 7KHSULPDU\REMHFWLYHLVWRJHWLQYROYHGLQWKH
VORWWHG DQG FKDQQHO KRSSLQJ 6HQRU
SURFHVV RI ,QWHUQHW 6WDQGDUG GHYHORSPHQW E\
1HWZRUN :,36H1  MRLQWO\ E\ &'$&
GHYHORSLQJ LQWHUQDO FRPSHWHQFLHV DQG WR
7KLUXYDQDQWKDSXUDPDQG,,6F%DQJDORUH
SURSRVH DQG FRQWULEXWH WR VHOHFW DUHDV RI
 7KH,QWHUQHW(QJLQHHULQJ7DVN)RUFH ,(7) KDV ,QWHUQHW6HFXULW\FUHDWHDQGIRVWHUIRFXVJURXSV
VHWXSWKH7L6&+JURXSWRIRFXVRQHQDEOLQJ WRZRUNRQVSHFLÀFWHFKQLFDOLVVXHVRILQWHUHVW
,3Y RYHU WKH 7LPH 6ORWWHG &KDQQHO +RSLQJ FRQFHUQLQJ ,QWHUQHW 6WDQGDUGV SURSRVH QHZ
76&+ PRGHRIWKH,(((HVWDQGDUG VWDQGDUGV DQG FRQWULEXWH WR RQJRLQJ GUDIWV LQ
7KHUHLVLPPHQVHVFRSHIRUSDUWLFLSDWLQJDQG DUHDV UHODWHG WR ,QWHUQHW 6HFXULW\ HQFRXUDJH
FRQWULEXWLQJ WR WKH ,(7) VWDQGDUGL]DWLRQ HIIRUW GLUHFWSDUWLFLSDWLRQLQWKHPHHWLQJVRIWKH,QWHUQHW
IRU WKH HPHUJLQJ 7L6&+ DUFKLWHFWXUH ZKLFK R U J D Q L ] D W L R Q V   H Q J D J H  Z L W K  D F D G H P L F
IRFXVHV RQ UHDO WLPH DSSOLFDWLRQV XVLQJ ORZ FRPPXQLW\ VWXGHQWVDQGIDFXOW\ LQGXVWU\DQG
SRZHUZLUHOHVVVHQVRUQHWZRUNVPDLQO\IRUWKH FLYLOVRFLHW\LQRUGHUWRSURPRWHWKHLUSDUWLFLSDWLRQ
LQGXVWULHV LQ ,QWHUQHW RUJDQL]DWLRQV DQG WR SURYLGH
VFKRODUVKLSV DQG  IHOORZVKLSV IRU GHVHUYLQJ
 7KHPDLQDFWLYLWLHVHQYLVDJHGLQWKHSURMHFWDUH
FDQGLGDWHV WR HQFRXUDJH SDUWLFLSDWLRQ LQ ,(7)
‡ $FWLYHSDUWLFLSDWLRQLQWKH,(7)GUDIWSURSRVDOVLQ DFWLYLWLHVDQGWRSUHSDUHIRUKRVWLQJ,(7)RUVLPLODU
WHUPV RI SURYLGLQJ IHHGEDFN WR WKH 7L6&+ VXFKPHHWLQJVLQ,QGLDLQIXWXUH
ZRUNLQJ JURXS GLVFXVVLRQV WKURXJK WKH
G  ,QWHUQHW5HVHDUFK 3ROLF\+XE&HQWUHIRU
LPSOHPHQWDWLRQH[SHULPHQWDWLRQLQODEVHWXS
&RPPXQLFDWLRQ *RYHUQDQFH DW 1DWLRQDO
‡ 6HWWLQJ XS RI D 7L6&+ WHVWEHG IDFLOLW\ IRU /DZ8QLYHUVLW\'HOKL
HPXODWLQJUHDOLVWLFHQYLURQPHQWVWRHYDOXDWHWKH
 7KH &HQWUH IRU &RPPXQLFDWLRQ *RYHUQDQFH
SURSRVHG DUFKLWHFWXUHV DQG ,(7) GUDIWV DQG
&&*  DLPV WR GLUHFW LWV UHVHDUFK H[SHUWLVH DW
GHYHORSLQJ DGGLWLRQDO SURWRFRO VSHFLÀFDWLRQV
ÀOOLQJ WKH NQRZOHGJH JDSV LQ LQWHUQHW SROLF\
EDVHG RQ WKH LQSXWV IURP WKH ,(7) :RUNLQJ
FOXVWHUVLGHQWLÀHGE\WKH81&RPPLVVLRQ
*URXS PHPEHUV HQG XVHUV FRPSULVLQJ RI
RQ 6FLHQFH DQG 7HFKQRORJ\ IRU 'HYHORSPHQW
L Q G X V W U \  5 '  J U R X S V  D Q G  D F D G H P L F
&67'  PDSSLQJ UHSRUW ZLWK D YLHZ WR EXLOG
FRPPXQLW\ DQG WR HYDOXDWH WKHLU IXQFWLRQDOLW\
FDSDFLW\ DQG LQIRUP SROLF\PDNLQJ DPRQJ
DQGSHUIRUPDQFHRQWKHWHVWEHG


 $QQXDO5HSRUW

,QGLDQVWDNHKROGHUV7KH81&67'FDUULHGRXWD 1DWLRQDO,QWHUQHW([FKDQJHRI,QGLD 1,;,

PDSSLQJ DQG JDS DQDO\VLV RI LQWHUQDWLRQDO
1,;, LV D QRW IRU SURÀW RUJDQL]DWLRQ VHW XS XQGHU
SXEOLF SROLF\ LVVXHV SHUWDLQLQJ WR WKH ,QWHUQHW
VHFWLRQRIWKH&RPSDQLHV$FW QRZVHFWLRQ
7KH PDSSLQJ GRFXPHQW LQFOXGHG FOXVWHUV
XQGHU&RPSDQLHV$FW IRUSHHULQJRI,63V
UHODWLQJ WR LQWHUQDWLRQDO ,QWHUQHW SXEOLF SROLF\
DPRQJWKHPVHOYHVDQGURXWLQJWKHGRPHVWLFWUDIÀF
LVVXHV RQ ,QIUDVWUXFWXUH DQG VWDQGDUGL]DWLRQ
ZLWKLQ WKH FRXQWU\ ZLWK VHHG IXQGLQJ IURP WKHQ
6HFXULW\ +XPDQ 5LJKWV /HJDO (FRQRPLF
'HSDUWPHQW RI ,QIRUPDWLRQ 7HFKQRORJ\ 1,;, LV
'HYHORSPHQWDQG6RFLRFXOWXUDOLVVXHV
SHUIRUPLQJWKHIROORZLQJWKUHHDFWLYLWLHV
 ,QWKLVUHJDUGSROLF\SDSHUVDUHEHLQJSUHSDUHG
‡ ,QWHUQHW([FKDQJH
RQWKHDERYHLVVXHVDVZHOODVRQWKHIROORZLQJ
‡ ,1 5HJLVWU\ DQG ,QWHUQDWLRQDOL]HG 'RPDLQ
, 7R IRUPXODWH D GUDIW OHJLVODWLRQUHJXODWLRQ IRU
1DPHV ,'1V
LPSURYHPHQWLQWKHRSHUDWLRQRI&RXQWU\&RGH
7RS /HYHO 'RPDLQV FF7/'V  LQFOXGLQJ ‡ 1DWLRQDO,QWHUQHW5HJLVWU\ 1,5 
GHOHJDWLRQDQGUHGHOHJDWLRQRIFF7/'VWRIHHG ,QWHUQHW ([FKDQJH 6HYHQ ,QWHUQHW ([FKDQJH
LQWRWKHZRUNRIWKH*$& 1RGHV DUH IXQFWLRQDO DW 'HOKL 1RLGD  0XPEDL
,, 3RWHQWLDOXVHVRIQHZJO/'DXFWLRQSURFHHGV &KHQQDL .RONDWD %HQJDOXUX +\GHUDEDG DQG
$KPHGDEDG 7KH ,QWHUQHW ([FKDQJH QRGHV KDYH
,,, ( [ L V W L Q J  F K D O O H Q J H V  Z L W K  H F R P P H U F H
EHHQVXFFHVVIXOLQHQVXULQJSHHULQJRI,63VDPRQJ
FRPSDQLHVDQG/HJDO)UDPHZRUNIRU&RQVXPHU
WKHPVHOYHVIRUWKHSXUSRVHRIURXWLQJWKHGRPHVWLF
SURWHFWLRQRQOLQH
WUDIÀFZLWKLQWKHFRXQWU\WKHUHE\UHVXOWLQJLQEHWWHU
,9 3ULYDF\DQGOHJDOFRQFHUQVZLWKVPDUWFLWLHVDQG TXDOLW\ RI VHUYLFH UHGXFHG ODWHQF\  DQG UHGXFHG
UHTXLUHG OHJDO )UDPHZRUN LQFOXGLQJ GUDIW EDQGZLGWK FKDUJHV IRU ,63V E\ VDYLQJ RQ
OHJLVODWLRQV JRYHUQLQJ &&79V DQG RWKHU ,QWHUQDWLRQDO%DQGZLGWK 7KHPD[LPXPYROXPHRI
1HWZRUNHG GHYLFHV ZKLFK VKDUH GDWD ERWK ,QWHUQHWWUDIÀFEHLQJKDQGOHGE\1,;,DWSUHVHQWLV
DQDORJDQGGLJLWDOHWF *ESV
9 7KHDQDO\VLVRIH[LVWLQJPHFKDQLVPVSRLQWVWRD $OOIXQFWLRQDO1,;,QRGHVDUH,3YUHDG\1,;,DOVR
NQRZOHGJH JDS RQ GDWD DQG UHVHDUFK DERXW XQGHUWDNHV WUDLQLQJ DQG ZRUNVKRSV IRU 1HWZRUN
WD[DWLRQRQWKH,QWHUQHWDQGWRFUHDWHWKHOHJDO PDQDJHUV DQG RWKHU 7HFKQLFDO HQJLQHHUV LQ FR
IUDPHZRUNDURXQGLW RSHUDWLRQ ZLWK $VLD 3DFLÀF 1HWZRUN ,QIRUPDWLRQ
&HQWUH $31,& 
9, 7KHUHH[LVWVDSROLF\JDSGXHWRDODFNRIZLGHO\
DFFHSWHG VWDQGDUGV RQ GLJLWDO VLJQDWXUHV WKDW ,1 5HJLVWU\ DQG ,QWHUQDWLRQDOL]HG 'RPDLQ
ZLOO HQVXUH JOREDO FRPSDWLELOLW\ UHGXFH 1DPHV ,'1V 6LQFH1,;,DOVRPDQDJHVWKH
WUDQVDFWLRQ FRPSOH[LW\ DQG IDFLOLWDWH IDVWHU ,1 5HJLVWU\ ZZZUHJLVWU\LQ  $W SUHVHQW 
GHYHORSPHQW RI HFRPPHUFH 7KHUH LV D IHOW 5HJLVWUDUV LQFOXGLQJ WZR JRYHUQPHQW UHJLVWUDUV
QHHG IRU D XQLYHUVDOO\ DFFHSWDEOH OHJDO QDPHO\1,&DQG(51(7 KDYHEHHQDFFUHGLWHGWR
IUDPHZRUN IRU JOREDO DFFHSWDQFH RI GLJLWDO RIIHU ,1 GRPDLQ 1DPH UHJLVWUDWLRQ ZRUOGZLGH WR
VLJQDWXUHVHVLJQ FXVWRPHUV7KLVKDVKHOSHGSUROLIHUDWLRQRIZHE
KRVWLQJLQWKHFRXQWU\DQGSURPRWLRQRI,QGLDQ


0LQLVWU\RI(OHFWURQLFV ,QIRUPDWLRQ7HFKQRORJ\ 0HLW<

ODQJXDJHFRQWHQWRQWKH,QWHUQHW2YHUPLOOLRQ $%&'() $ LQ

,1 'RPDLQ QDPHV KDYH EHHQ UHJLVWHUHG WLOO WHUPVRIFRPSHQVDWLRQDQGSXQLVKPHQWWRGHDO
'HFHPEHU  ,'1·V LQ +LQGL %RGR 'RJUL ZLWKF\EHUFULPHVXFKDVF\EHUWHUURULVPRQOLQH
.RQNDQL 0DLWKLOL 0DUDWKL 1HSDOL 6LQGKL %HQJDOL SRUQRJUDSK\ LQFOXGLQJ FKLOG SRUQRJUDSK\
*XMDUDWL0DQLSXUL3XQMDEL7DPLO7HOXJXDQG8UGX FULPLQDO DFW XVLQJ FRPSXWHU LGHQWLW\ WKHIW
ODQJXDJHVZHUHODXQFKHGGXULQJWKH\HDU FKHDWLQJ E\ SHUVRQDWLRQ YLRODWLRQ RI SULYDF\
DQG RYHU  ,'1V GRPDLQ QDPHV KDYH EHHQ EUHDFKRIFRQÀGHQWLDOO\DQGSULYDF\EUHDFKRI
UHJLVWHUHG WLOO GDWH ,Q $XJXVW  1,;, KDV JRW ODZIXOFRQWUDFWHWF
GHOHJDWLRQ RI WKH UHPDLQLQJ RIÀFLDO ODQJXDJHV
 ,QGLDQ &RPSXWHU (PHUJHQF\ 5HVSRQVH
$VVDPHVH.DQQDGD0DOD\DODP2UL\D6DQVNULW
7HDP &(57,Q
6DQWKDOLLQ'HYDQDJDUL6FULSWDQG.DVKPLUL 6LQGKL
LQ3HUVR$UDELF6FULSW IURP,&$11 &(57,Q LV D IXQFWLRQDO RUJDQLVDWLRQ RI 0LQLVWU\ RI
( O H F W U R Q L F V  D Q G  , Q I R U P D W L R Q  7H F K Q R O R J \
1DWLRQDO ,QWHUQHW 5HJLVWU\ 1,5  6LQFH 0DUFK
*RYHUQPHQWRI,QGLD&(57,QKDVEHHQGHVLJQDWHG
 1,;, LV DOVR UXQQLQJ WKH 1DWLRQDO ,QWHUQHW
XQGHU 6HFWLRQ % RI WKH ,QIRUPDWLRQ 7HFKQRORJ\
5HJLVWU\ 1,5 IRU,QGLDQDPHGDV,QGLDQ5HJLVWU\IRU
$PHQGPHQW  $FW  WR VHUYH DV WKH QDWLRQDO
,QWHUQHW1DPHVDQG1XPEHUV ,5,11  ,5,11  LV
DJHQF\ WR SHUIRUP WKH IROORZLQJ IXQFWLRQV LQ WKH
UHVSRQVLEOHIRUDOORFDWLRQRI,3DGGUHVVHVDQG$6
DUHDRIF\EHUVHFXULW\
1XPEHUVZLWKLQWKHFRXQWU\$VRQ'HFHPEHU
RYHUDIÀOLDWHVKDYHMRLQHG,5,112XWRI ‡ &ROOHFWLRQ DQDO\VLV DQG GLVVHPLQDWLRQ RI
$IÀOLDWHVKDYHWDNHQ,39KDYHWDNHQ,39 LQIRUPDWLRQRQF\EHUVHFXULW\LQFLGHQWV
DQGDIÀOLDWHVKDYHWDNHQERWK,3YDVZHOODV ‡ )RUHFDVWDQGDOHUWVRIF\EHUVHFXULW\LQFLGHQWV
,3Y
‡ (PHUJHQF\ PHDVXUHV IRU KDQGOLQJ F\EHU
&\EHU/DZ VHFXULW\LQFLGHQWV
&RPSUHKHQVLYHOHJDOIUDPHZRUNLQWHUPVRI,7$FW ‡ &RRUGLQDWLRQ RI F\EHU VHFXULW\ LQFLGHQW
DQGLWVDPHQGPHQWSURYLGHVIRU UHVSRQVHDFWLYLWLHV
‡ &ROOHFWLRQDQGVKDULQJRILQIRUPDWLRQUHODWHGWR ‡ ,VVXHJXLGHOLQHVDGYLVRULHVYXOQHUDELOLW\QRWHV
F\EHU LQFLGHQWV VHFWLRQV %  %  IRU DQGZKLWHSDSHUVUHODWLQJWRLQIRUPDWLRQVHFXULW\
HIIHFWLYHSURDFWLYHUHDFWLYHDFWLRQVE\&(57,Q SUDFWLFHV SURFHGXUHV SUHYHQWLRQ UHVSRQVH
DQG LQYHVWLJDWLYH DFWLRQV E\ ODZ HQIRUFHPHQW DQGUHSRUWLQJRIF\EHULQFLGHQWV
DJHQFLHV
‡ 6XFKRWKHUIXQFWLRQVUHODWLQJWRF\EHUVHFXULW\
‡ 3UHVFULSWLRQ DQG LPSOHPHQWDWLRQ RI VHFXULW\ DVPD\EHSUHVFULEHG
EHVW SUDFWLFHV DQG JXLGHOLQHV WR SUHYHQW
&(57,Q FUHDWHV DZDUHQHVV RQ VHFXULW\ LVVXHV
RFFXUUHQFHDQGUHFXUUHQFHRIVHFXULW\LQFLGHQWV
WKURXJKGLVVHPLQDWLRQRILQIRUPDWLRQRQLWVZHEVLWH
VHFWLRQV$ %
KWWS ZZZ FHUWLQRUJLQ  DQG RSHUDWHV [
‡ 3URWHFWLRQ RI FULWLFDO LQIRUPDWLRQ LQIUDVWUXFWXUH LQFLGHQFH UHVSRQVH +HOS 'HVN &(57,Q SURYLGHV
VHFWLRQ$ ,QFLGHQW3UHYHQWLRQDQG5HVSRQVHVHUYLFHVDVZHOO
‡ (IIHFWLYH GHWHUUHQFH SURYLVLRQV VHFWLRQV  DV 6HFXULW\ 4XDOLW\ 0DQDJHPHQW 6HUYLFHV 7KH


 $QQXDO5HSRUW

DFWLYLWLHV FDUULHG RXW E\ &(57,Q GXULQJ  &\EHU6HFXULW\$VVXUDQFH

FRPSULVHGRIWKHIROORZLQJ
8QGHU6HFXULW\$VVXUDQFH)UDPHZRUN&(57,QKDV
HPSDQHOOHG  DXGLWRUV WR FDUU\ RXW LQIRUPDWLRQ
$FWLYLWLHV 1XPEHUV
VHFXULW\ DXGLW LQFOXGLQJ WKH YXOQHUDELOLW\
 $SULO'HF
DVVHVVPHQWDQGSHQHWUDWLRQWHVWRIWKHQHWZRUNHG
,QFLGHQWVKDQGOHG 
LQIUDVWUXFWXUH RI JRYHUQPHQW DQG FULWLFDO VHFWRU
6HFXULW\$OHUWV,QFLGHQW1RWHV 
RUJDQL]DWLRQV IRU WKH EORFN SHULRG 
$GYLVRULHV 
*RYHUQPHQW DQG FULWLFDO VHFWRU RUJDQL]DWLRQV DUH
9XOQHUDELOLW\1RWHV 
LPSOHPHQWLQJ WKH VHFXULW\ EHVW SUDFWLFHV LQ
7UDLQLQJV 
DFFRUGDQFHZLWK,62VWDQGDUGDQGDVSHUWKH
,QGLDQ:HEVLWH'HIDFHPHQWWUDFNHG  DGYLFH LVVXHG E\ &(57,Q  6HUYLFHV RI &(57,Q
%RW,QIHFWHGV\VWHPVWUDFNHG  HPSDQHOOHG,7VHFXULW\DXGLWRUVDUHEHLQJXVHGWR
6HFXULW\'ULOOV  YHULI\FRPSOLDQFH
&\EHU&ULVLV0DQDJHPHQW3ODQ

&RRSHUDWLRQDQG&ROODERUDWLRQ *RYHUQPHQW KDV IRUPXODWHG D &\EHU &ULVLV

0DQDJHPHQW 3ODQ &&03  IRU FRXQWHULQJ F\EHU
6WUHQJWKHQLQJ ,QWHUQDWLRQDO FRRSHUDWLRQ WR
DWWDFNVDQGF\EHUWHUURULVPIRULPSOHPHQWDWLRQE\
HIIHFWLYHO\GHDOZLWKF\EHUVHFXULW\LVVXHVKDVEHHQ
DOO0LQLVWULHV'HSDUWPHQWVRI&HQWUDO*RYHUQPHQW
RQHRIWKHPDLQIRFXVDUHDVRIWKH*RYHUQPHQW$V
6WDWH *RYHUQPHQWV87V DQG WKHLU RUJDQL]DWLRQDO
VXFK WKLV DVSHFW LV EHLQJ GHDOW ZLWK E\ ZD\ RI
XQLWVLQFULWLFDOVHFWRUV,QDGGLWLRQVHYHUDOJXLGHOLQH
VHFXULW\ FRRSHUDWLRQ DUUDQJHPHQWV LQ WKH IRUP RI
GRFXPHQWVDQGWHPSODWHVKDYHEHHQSXEOLVKHGWR
0HPRUDQGXP RI 8QGHUVWDQGLQJ 0R8  EHWZHHQ
DVVLVWGHYHORSPHQWDQGLPSOHPHQWDWLRQRIVHFWRUDO
,QGLDQ&RPSXWHU(PHUJHQF\5HVSRQVH7HDPDQG
& U L V L V  0 D Q D J H P H Q W  3 O D Q V   & \ E H U  & U L V L V
LWVRYHUVHDVFRXQWHUSDUWDJHQFLHVWKDWDUHZLOOLQJWR
0DQDJHPHQW 3ODQ &&03  IRU FRXQWHULQJ &\EHU
ZRUN WRJHWKHU DQG VKDUH LQIRUPDWLRQ LQ D WLPHO\
$WWDFNVDQG&\EHU7HUURULVPLVXSGDWHGSHULRGLFDOO\
PDQQHU IRU SUHYHQWLQJ F\EHU FULPHV DQG F\EHU
WR WDNH LQWR DFFRXQW FKDQJLQJ VFHQDULR RI F\EHU
DWWDFNVDVZHOODVFROODERUDWLQJIRUSURYLGLQJVZLIW
WKUHDW ODQGVFDSH &(57,Q KDV FRQGXFWHG 
UHVSRQVHWRVXFKLQFLGHQWV$WSUHVHQWVXFK0R8V
ZRUNVKRS VLQFH $SULO  WR DSSUDLVH YDULRXV
KDYH EHHQ VLJQHG ZLWK FRXQWULHV VXFK DV 86$
RUJDQL]DWLRQV XQGHU WKH &HQWUDO 0LQLVWULHV
8QLWHG .LQJGRP -DSDQ 6RXWK .RUHD $XVWUDOLD
6WDWHV87VDERXWWKH&03LPSOHPHQWDWLRQDQGDOO
0DOD\VLD 6LQJDSRUH &DQDGD 9LHWQDP DQG
QHFHVVDU\ DVVLVWDQFH LV EHLQJ SURYLGHG WR WKHP
8]EHNLVWDQ &(57,QLVUHJXODUO\FRRUGLQDWLQJZLWK
ZLWKUHJDUGWRLPSOHPHQWDWLRQRI&037LOOGDWH
OHDGLQJ VHUYLFH SURYLGHUV DQG SURGXFW YHQGRUV
&03HQDEOLQJZRUNVKRSVKDYHEHHQFRQGXFWHG
ZLWKLQ DQG RXWVLGH WKH FRXQWU\ WR REWDLQ DGYDQFH
LQIRUPDWLRQRQODWHVWF\EHUWKUHDWVDQGDWWDFNWUHQGV &\EHU6HFXULW\'ULOOV
DQG GHYLVH DSSURSULDWH SURDFWLYH DQG SUHYHQWLYH &\EHU6HFXULW\0RFN'ULOOVDUHEHLQJFRQGXFWHGE\
PHDVXUHV WKH*RYHUQPHQWWRKHOSWKHRUJDQLVDWLRQVWRDVVHVV


0LQLVWU\RI(OHFWURQLFV ,QIRUPDWLRQ7HFKQRORJ\ 0HLW<

WKHLU SUHSDUHGQHVV WR ZLWKVWDQG F\EHU DWWDFNV ZRUNVKRSVWRWUDLQRIÀFLDOVRI*RYHUQPHQWFULWLFDO

7KHVHGULOOVKDYHKHOSHGWUHPHQGRXVO\LQLPSURYLQJ VHFWRU SXEOLF VHFWRU LQGXVWU\ ÀQDQFLDO  EDQNLQJ
WKH F\EHU VHFXULW\ SRVWXUH RI WKH LQIRUPDWLRQ VHFWRURQYDULRXVFRQWHPSRUDU\DQGIRFXVHGWRSLFV
LQIUDVWUXFWXUHDQGWUDLQLQJRIPDQSRZHUWRKDQGOH RI &\EHU 6HFXULW\ 'XULQJ  &(57,Q KDV
F\EHU LQFLGHQWV EHVLGHV LQFUHDVLQJ WKH F\EHU FRQGXFWHG  WUDLQLQJV LQFOXGLQJ D VHSDUDWH
VHFXULW\ DZDUHQHVV DPRQJ WKH NH\ VHFWRU WUDLQLQJ SURJUDPPH IRU ZRPHQ ,7 RIÀFHUV  RQ
RUJDQL]DWLRQV7LOOGDWH&(57,QKDVFRQGXFWHG YDULRXV VSHFLDOL]HG WRSLFV RI F\EHU VHFXULW\ 7LOO
&\EHU VHFXULW\ GULOOV RI GLIIHUHQW FRPSOH[LWLHV ZLWK 'HFHPEHU RIÀFHUVLQFOXGLQJV\VWHP1HWZRUN
SDUWLFLSDWLRQ IURP PRUH WKDQ  RUJDQL]DWLRQV $GPLQLVWUDWRUV 'DWDEDVH $GPLQLVWUDWRUV
FRYHULQJ YDULRXV VHFWRUV RI ,QGLDQ HFRQRP\ LH $SSOLFDWLRQ 'HYHORSHUV ,7 0DQDJHUV &KLHI
'HIHQFH 3DUDPLOLWDU\ IRUFHV 6SDFH $WRPLF ,QIRUPDWLRQ 6HFXULW\ 2IÀFHUV &,62V  &KLHI
(QHUJ\ 7HOHFRPPXQLFDWLRQV ,63V  )LQDQFH LQIRUPDWLRQ RIÀFHUV &,2V  DQG ,7 6HFXULW\
3RZHU2LO 1DWXUDO*DV7UDQVSRUWDWLRQ 5DLOZD\V  SURIHVVLRQDOKDYHEHHQWUDLQHG
&LYLO $YLDWLRQ   ,7  ,7H6 %32 VHFWRUV DQG 'DWD 8SJUDGLQJRIWKHWHFKQLFDO,QIUDVWUXFWXUH
&HQWUHV IURP *RYHUQPHQW3XEOLF 3ULYDWH  -RLQW
&\EHU 6HFXULW\ 'ULOO E\ &(57,Q  5%, ZDV %DQGZLGWKSRROKDVEHHQHQKDQFHGZLWKOLQNVIURP
VXFFHVVIXOO\FRQGXFWHGRQ6HSWHPEHUIRU PXOWLSOHVHUYLFHVSURYLGHUVLQRUGHUWRPLQLPL]HWKH
YDULRXVFRPPHUFLDOEDQNVWRHQDEOHWKHPWRDVVHVV FKDQFHRIGRZQWLPHVDQGWKZDUWDWWHPSWVRI''R6
WKHLUHPHUJHQF\LQFLGHQWUHVSRQVHSUHSDUHGQHVV DWWDFNVRQWKHLQIUDVWUXFWXUH0DLOVHUYHUVKDYHEHHQ
XSJUDGHG ZLWK DGGLWLRQDO VHFXULW\ DQG IHDWXUHV
3DUDOOHO 7HVW EHG IDFLOLW\ HVWDEOLVKHG DW ,,6F $SSOLFDWLRQ)LUHZDOOVKDYHEHHQGHSOR\HGLQRUGHU
%DQJDORUH IRU &(57,Q LV EHLQJ XVHG WR SURYLGH WR RSWLPL]H UHVSRQVH WLPH RI WKH   :HE 6LWH DQG
VXSSRUWLQFRQGXFWLQJF\EHUVHFXULW\H[HUFLVHV SURYLGH DGGLWLRQDO VHFXULW\ ,QWUXVLRQ SUHYHQWLRQ
$6($1&(57V,QFLGHQW5HVSRQVH'ULOO $&,'  V\VWHPVKDYHEHHQDGGHGZLWKDGYDQFHGIHDWXUHV
Z D V  F R Q G X F W H G  Z L W K  W K H  R E M H F W L Y H V  R I RIDXWRGHWHFWLRQDQGEORFNLQJEHKDYLRXUDODWWDFNV
6WUHQJWKHQLQJ F\EHU VHFXULW\ SUHSDUHGQHVV RI )UHTXHQF\RIUHSOLFDWLQJ&ULWLFDOGDWDVXFKDVZHE
$6($1 PHPEHU VWDWHV DQG 'LDORJXH SDUWQHUV LQ PDLODQG,QFLGHQW7UDFNLQJKDVEHHQLQFUHDVHGLQ
KDQGOLQJ F\EHU LQFLGHQWV DQG UHLQIRUFH UHJLRQDO RUGHU WR PLQLPL]H GDWD ORVV LQ FDVH RI D GLVDVWHU
FRRUGLQDWLRQ GULOOV WR WHVW LQFLGHQW UHVSRQVH %DQGZLGWKOLQNVDWWKHGLVDVWHUUHFRYHU\VLWHKDYH
FDSDELOLWLHV 7KLV \HDU WKH WKHPH RI WKH GULOO ZDV EHHQ XSJUDGHG ZLWK GHGLFDWHG SRLQWWRSRLQW
KDQGOLQJLQFLGHQWVRI5DQVRPZDUH FRQQHFWLYLW\ EHLQJ FRQÀJXUHG ZLWK WKH PDLQ VLWH
6HFXULW\ DZDUHQHVV VNLOO GHYHORSPHQW DQG 'DWDDUFKLYDOKDVEHHQDFKLHYHGE\WKHGHSOR\PHQW
WUDLQLQJ RI/72 /LQHDU7DSH2SHQ PDJQHWLFVWRUDJHDWWKH
PDLQVLWHDQG'LVDVWHUUHFRYHU\VLWH
&(57,Q LV UHJXODUO\ FRQGXFWLQJ WUDLQLQJV 


 $QQXDO5HSRUW

%RWQHW&OHDQLQJDQG0DOZDUH$QDO\VLV&HQWUH &\EHU6ZDFKKWD.HQGUD

%RWQHW&OHDQLQJDQG0DOZDUH$QDO\VLV&HQWUHKDV ZHOOEHLQJRI,QIRUPDWLRQ7HFKQRORJ\DQG1DWLRQDO
EHHQ HVWDEOLVKHG E\ &(57,Q IRU GHWHFWLRQ RI HFRQRP\QHFHVVLWDWHVWKHQHHGIRUQHDUUHDOWLPH
FRPSURPLVHGV\VWHPVLQ,QGLDDQGWRQRWLI\HQDEOH VLWXDWLRQDODZDUHQHVVDQGUDSLGUHVSRQVHWRF\EHU
FOHDQLQJ DQG VHFXULQJ V\VWHPV RI HQG XVHUV WR VHFXULW\LQFLGHQWV5HDOL]LQJWKHQHHG*RYHUQPHQW
SUHYHQW IXUWKHU PDOZDUH LQIHFWLRQV 7KH FHQWUH LV KDV LQLWLDWHG DFWLRQV WR VHW XS WKH 1DWLRQDO &\EHU
ZRUNLQJLQFORVHFRRUGLQDWLRQDQGFROODERUDWLRQZLWK &RRUGLQDWLRQ &HQWUH 1&&&  WR JHQHUDWH
,QWHUQHW6HUYLFH3URYLGHUVDQG,QGXVWU\:HEVLWHRI PDFURVFRSLFYLHZVRIWKHF\EHUVHFXULW\EUHDFKHV
WKH FHQWUH LV RSHUDWLRQDOLVHG LQ 'HFHPEHU  DQGF\EHUVHFXULW\WKUHDWVLQWKHFRXQWU\1&&&ZLOO
7KH FHQWUH LV SURYLGLQJ GHWHFWLRQ RI PDOLFLRXV EH D PXOWL VWDNHKROGHU ERG\ DQG ZLOO EH
SURJUDPV DQG IUHH WRROV WR UHPRYH WKH VDPH IRU LPSOHPHQWHG E\ ,QGLDQ &RPSXWHU (PHUJHQF\
FRPPRQXVHUV)XUWKHUWKHFHQWUHLVZRUNLQJZLWK 5HVSRQVH7HDP &(57,Q DW0LQLVWU\RI(OHFWURQLFV
%DQNVWRGHWHFWPDOZDUHLQIHFWLRQVLQWKHLUQHWZRUNV DQG,QIRUPDWLRQ7HFKQRORJ\ 0HLW< 7KHFHQWUHZLOO
DQGHQDEOHUHPHGLDODFWLRQV ZRUNZLWKYDULRXVRUJDQL]DWLRQVDQGHQWLWLHVLQWKH
FRXQWU\WRFRXQWHUDQGPLWLJDWHDWWDFNVDQGF\EHU
1DWLRQDO&\EHU&RRUGLQDWLRQ&HQWUH 1&&&
LQFLGHQWVRQDQHDUUHDOWLPHEDVLV7KHSKDVHRI
(YROYLQJF\EHUWKUHDWODQGVFDSHDQGLWVLPSDFWRQ WKH SURMHFW IRU VHWWLQJ XS RI WHVW EHG LV XQGHU


0LQLVWU\RI(OHFWURQLFV ,QIRUPDWLRQ7HFKQRORJ\ 0HLW<

LPSOHPHQWDWLRQ LL  5HFRUGLQJDZDUHQHVVVHVVLRQVZLWKUHVSHFWWR
F\EHUVHFXULW\XQGHUWKH'LJLVKDOD$ZDUHQHVV
&\EHU)RUHQVLFV
&DPSDLJQ KDYH EHHQ FDUULHG RXW IRU FUHDWLQJ
&HUW,Q LV HTXLSSHG ZLWK FRPSXWHU IRUHQVLFV DQG DZDUHQHVV DPRQJ FLWL]HQV WR VHFXUHO\ DQG
PRELOH GHYLFH IRUHQVLF DQDO\VLV IDFLOLW\ WR UHWULHYH VDIHO\XVHGLJLWDOSD\PHQWV
DQGDQDO\VHWKHGDWDIURPWKHGLJLWDOGHYLFHV&(57
LLL  'HSDUWPHQW RI 3D\PHQW DQG 6HWWOHPHQW
,Q V IDFLOLW\ IRU 'LJLWDO )RUHQVLFV GDWD UHWULHYDO DQG
6\VWHPV5%,KDVEHHQUHTXHVWHGIRUFDUU\LQJ
DQDO\VLV RI WKH GLJLWDO GHYLFHV LV EHLQJ XWLOLVHG LQ
RXWDXGLWVE\HPSDQHOOHGDXGLWRUVIRUDOOGLJLWDO
LQYHVWLJDWLRQ RI WKH F\EHU VHFXULW\ LQFLGHQWV DQG
ZDOOHWV
F\EHUFULPHV&HUW,QLPSDUWVWUDLQLQJRQFRPSXWHU
IRUHQVLFV DQG PRELOH GHYLFH IRUHQVLFV WKURXJK LY  &(57,QKDVLQIRUPHGDOO3D\PHQW%DQNV33,V
OHFWXUHV  GHPRQVWUDWLRQV DQG KDQGV RQ SUDFWLFDO DQG')$IRUPDQGDWRU\UHSRUWLQJRI,QFLGHQWVWR
VHVVLRQV GXULQJ WKH WUDLQLQJ ZRUNVKRSV ZKLFK &(57,QDQGWRQRPLQDWH&,62V$GYHUWLVHPHQW
FRYHUVVHL]LQJSUHVHUYDWLRQLPDJLQJDQGDQDO\VLV LQ(QJOLVKDQG+LQGL1HZVSDSHUZHUHDOVRJLYHQ
RI WKH GLJLWDO GHYLFHV &(57,Q DOVR SURYLGHV IRUUHSRUWLQJRIF\EHUVHFXULW\LQFLGHQWVWR&(57
VXSSRUWWRWKHRWKHUWUDLQLQJLQVWLWXWHVLQLPSDUWLQJ ,Q
WUDLQLQJ RQ LQYHVWLJDWLRQV RI F\EHU FULPHV F\EHU
Y  ,QRUGHUWREXLOGDVHFXUHDQGUREXVWHFRV\VWHP
VHFXULW\LQFLGHQWVXVLQJF\EHUIRUHQVLFVWHFKQLTXHV
&(57,Q LV FRQGXFWLQJ D VHULHV RI ZRUNVKRSV
 ,QLWLDWLYHV WRZDUGV 6HFXULW\ LQ 'LJLWDO 7ZRZRUNVKRSVRQ´'LJLWDO3D\PHQWV6HFXULW\LQ
3D\PHQWV ,QGLDµ KDV EHHQ FRQGXFWHG RQ  
 LQYLWLQJ &,62V IURP 33,V %DQNV
L  DGYLVRULHVKDYHEHHQSXEOLVKHGE\&(57,Q
,63V 5%, DORQJ ZLWK SDUWLFLSDWLRQ EDQNLQJ
VLQFH 1RY   IRU VHFXULW\ VDIHJXDUGV
WHFKQRORJ\SURYLGHUVDQGFRQVXOWDQWV
FRYHULQJ3260LFUR$70VHOHFWURQLF:DOOHWV
RQOLQHEDQNLQJVPDUWSKRQHVXQLÀHGSD\PHQW YL  &\EHU &ULVLV 0DQDJHPHQW :RUNVKRS DQG
LQWHUIDFH 866' 5X3D\ 6,0 FDUGV ZLUHOHVV H[HUFLVHVKDYHEHHQFDUULHGRXWIRUEDQNVDQG
DFFHVVSRLQWVURXWHUVPRELOHEDQNLQJFORXG ,'5%76HULHVRIPHHWLQJVDUHEHLQJKHOGZLWK
DQG $(36 $GYLVRU\ KDV DOVR EHHQ VHQW E\ &KLHI ,QIRUPDWLRQ 6HFXULW\ 2IÀFHUV &,62V  RI
&(57,QWR 5%,13&,3D\PHQW&DUG ,QGXVWU\ YDULRXV0LQLVWULHV'HSDUWPHQWVWRDVVHVVWKH
2UJDQL]DWLRQVFRYHULQJSUHFDXWLRQVWREHWDNHQ VHFXULW\SUDFWLFHV
WRDYRLGVLPLODUDWWDFNVDVWKRVHWKDWRFFXUUHG
YLL  %RWQHW$QDO\VLVDQG0DOZDUH&OHDQLQJ&HQWUHLV
UHFHQWO\ZLWKFUHGLWGHELWFDUGVDGYLVRULHV
IXQFWLRQLQJ ZKLFK ZLOO LGHQWLI\ LQIHFWHG ,3
ZHUHIRUVHUYLFHSURYLGHUVDQGHDFKIRU'HYLFH
DGGUHVVHVIRUEDQNV
6HFXULW\'DWD6HFXULW\%URZVHU266HFXULW\ 
1HWZRUN6HFXULW\IRU8VHUV YLLL &HUW,Q LV ZRUNLQJ ZLWK 1DWLRQDO 3D\PHQWV
&RUSRUDWLRQ RI ,QGLD 13&,  WR DVVHVV WKHLU
VHFXULW\SRVWXUH


 &+$37(5
6.,//,1',$
&$3$&,7<%8,/',1*

6NLOO,QGLD VNLOO GHYHORSPHQW DQG LQGLFDWLYH OLVW RI PDMRU

6FKHPHV3URMHFWVDUHSUHVHQWHG
+5' DFWLYLWLHV RI 0HLW< DUH WDUJHWHG WR HQVXUH
DYDLODELOLW\ RI WUDLQHG KXPDQ UHVRXUFHV IRU WKH 7KH6NLOO'HYHORSPHQWDFWLYLWLHVRIWKH0LQLVWU\DUH
PDQXIDFWXULQJ VHUYLFHVHFWRUVRIHOHFWURQLFVDQG SULPDULO\ EHLQJ WDNHQ XS E\ LWV WZR DXWRQRPRXV
,7 LQGXVWU\  ,QLWLDWLYHV LQFOXGH LGHQWLI\LQJ JDSV VRFLHWLHV YL] 1DWLRQDO ,QVWLWXWH RI (OHFWURQLFV DQG
HPHUJLQJ IURP WKH IRUPDO VHFWRU DQG SODQQLQJ ,QIRUPDWLRQ 7HFKQRORJ\ 1,(/,7 SUHYLRXVO\ NQRZQ
SURJUDPPHVLQQRQIRUPDODQGIRUPDOVHFWRUVIRU DV '2($&&  DQG &HQWUH IRU 'HYHORSPHQW RI
PHHWLQJ WKHVH JDSV  7KLV LQFOXGHV 6NLOO $GYDQFHG &RPSXWLQJ &'$&  ,Q DGGLWLRQ WKH
'HYHORSPHQWLQWKHGRPDLQRI(OHFWURQLFV ,7DQG YDULRXVRUJDQL]DWLRQVDWWDFKHGRIÀFHVXQGHUWKH
UHODWHG DUHDV  ,Q WKH VXFFHHGLQJ VHFWLRQV EULHI 'HSDUWPHQWYL](51(7,QGLD0HGLD/DE$VLD&6&
GHWDLOV DERXW YDULRXV RQJRLQJ LQLWLDWLYHV LQFOXGLQJ (*RYHUQDQFH 6HUYLFHV ,QGLD /LPLWHG 674& 1,&


 $QQXDO5HSRUW

HWF DUH DOVR HQJDJHG LQ WUDLQLQJ RI YDULRXV QRZUHYLVHGWRCFURUHZHI RYHUD
VWDNHKROGHUVLQVPDOOQXPEHUV SHULRGRIQLQH\HDUVLQ)HEUXDU\
7KH IROORZLQJ VFKHPHVDFWLYLWLHV SHUWDLQLQJ WR 7KH 6FKHPH ZDV ODXQFKHG LQ WKH DFDGHPLF\HDU
+XPDQ5HVRXUFH'HYHORSPHQWIRU(OHFWURQLFVDQG  7KH WRWDO QXPEHU RI VXSSRUW IRU 3K'
,&7 VHFWRU KDYH EHHQ WDUJHWHG DQG KDYH EHHQ FDQGLGDWHV  DSSURYHG LV  IXOOWLPH DQG 
DSSURYHGXQGHULPSOHPHQWDWLRQ SDUWWLPH $FDGHPLF &RPPLWWHH DOVR DSSURYHG
VXSSRUWIRU<RXQJ)DFXOW\5HVHDUFK)HOORZVKLSV
3RVW*UDGXDWHDQG'RFWRUDWH/HYHO
<)5) IURPLQVWLWXWLRQVXQGHUWKH3K'6FKHPH
6FKHPHWRJLYHDWKUXVWWR5HVHDUFKLQDUHDVRI
$V RQ VW 'HFHPEHU  D WRWDO RI  3K'
(OHFWURQLF6\VWHP'HVLJQDQG0DQXIDFWXULQJ
)XOO7LPH3DUW7LPH FDQGLGDWHVKDYH
(6'0  DQG ,7,7 (QDEOHG 6HUYLFHV ,7(6 
EHHQHQUROOHGDWWKHLQVWLWXWHV
>´9LVYHVYDUD\D3K'6FKHPHIRU(OHFWURQLFVDQG
,7µ@ *UDGXDWHOHYHO
7KHREMHFWLYHRIWKHDERYHVFKHPHLVWRJHQHUDWH 6FKHPHRI)LQDQFLDO$VVLVWDQFHIRUVHWWLQJXS
3K'VIRUHDFKRI(6'0DQG,7,7(6VHFWRUV RI(OHFWURQLFVDQG,&7$FDGHPLHV
RYHU D SHULRG RI  \HDUV LQ RUGHU WR SURPRWH
7KH REMHFWLYH RI WKH DERYH VFKHPH LV WR VHW XS
LQQRYDWLRQ DQG GHYHORSPHQW RI QHZ SURGXFWV LQ
VHYHQ  (OHFWURQLFVDQG,&7$FDGHPLHVDVDXQLW
,7,7(6DQG(6'0VHFWRUVRXWRIZKLFK3K'V
LQ ,,7V ,,,7V 1,7V HWF IRU IDFXOW\PHQWRU
IRUHDFKRI(6'0DQG,7,7(6VHFWRUVRYHUDSHULRG
GHYHORSPHQWXS JUDGDWLRQ WR LPSURYH WKH
RI\HDUVZRXOGKDYHIHOORZVKLSVXSSRUWDQGWKH
HPSOR\DELOLW\RIWKHJUDGXDWHVGLSORPDKROGHUVLQ
RWKHUHQUROOHGUHJLVWHUHGRYHUWKHSHULRGRI
YDULRXV VWUHDPV WKURXJK DFWLYH FROODERUDWLRQ RI
WKH 6FKHPH ZRXOG UHFHLYH RQH WLPH LQFHQWLYH IRU
6WDWHV87V ZLWK ÀQDQFLDO DVVLVWDQFH IURP WKH
HDFK RI (6'0 DQG ,7,7(6 VHFWRUV WR HQFRXUDJH
&HQWUDO *RYHUQPHQW (OHFWURQLFV DQG ,&7
ZRUNLQJ SURIHVVLRQDOV DQG QRQ 3K' IDFXOW\
$FDGHPLHV DUH DLPHG DW SURYLGH VSHFLDOL]HG
PHPEHUV WR SXUVXH 3K' LQ WKH (6'0 RU ,7,7(6
WUDLQLQJ WR WKH IDFXOWLHV RI WKH (QJLQHHULQJ $UWV
VHFWRUV ,Q DGGLWLRQ  <RXQJ )DFXOW\ 5HVHDUFK
&RPPHUFH  6FLHQFH FROOHJHV 3RO\WHFKQLFV HWF
)HOORZVKLSVZRXOGEHSURYLGHGWRHQFRXUDJHDQG
E\GHYHORSLQJVWDWHRIWKHDUWIDFLOLWLHV2XWRIWKH
UHFRJQL]H WKH HOLJLEOH <RXQJ )DFXOW\ LQYROYHG LQ
6HYHQ   $FDGHPLHV )LYH   $FDGHPLHV KDYH
UHVHDUFKDQGWHFKQRORJ\GHYHORSPHQWLQWKHDUHDV
EHHQ VHWXS LQ &DWHJRU\ ¶$·  DW ,,7 .DQSXU 8WWDU
RI (6'0 DQG ,7,7(6 WR UHWDLQ DV ZHOO DV DWWUDFW
3UDGHVK ,,7*XZDKDWL $VVDP 1,73DWQD %LKDU 
\RXQJIDFXOW\LQDFDGHPLD
1,7:DUDQJDO 7HODQJDQD DQG ,,,7' 0-DEDOSXU
7KHGXUDWLRQRIVFKHPHZRXOGEHIRUÀYH\HDUVIRU 0DGK\D 3UDGHVK  ZLWK DQ DQQXDO WDUJHW WR WUDLQ
WKH SXUSRVH RI VHOHFWLQJ 3K' FDQGLGDWHV IRU IDFXOW\HDFK)XUWKHUWZR  $FDGHPLHVKDYH
VXSSRUW XQGHU WKH VFKHPH +RZHYHU WKH IXQGLQJ EHHQ  VHWXS LQ &DWHJRU\ ¶%· DW  ,,7 5RRUNHH
ZRXOGEHFRQWLQXHGWLOOWK\HDUIRUWKHFRPPLWPHQWV 8WWDUDNKDQG DQG01,7-DLSXU 5DMDVWKDQ ZLWKDQ
DOUHDG\PDGHGXULQJWKHVFKHPHSHULRG DQQXDO WDUJHW WR WUDLQ  IDFXOW\ HDFK  7KHVH
$FDGHPLHVKDYHEHFRPHRSHUDWLRQDO
*RYHUQPHQW KDV DSSURYHG LPSOHPHQWDWLRQ RI WKH
3K'6FKHPHDWDWRWDOHVWLPDWHGFRVWRICFURUH


0LQLVWU\RI(OHFWURQLFV ,QIRUPDWLRQ7HFKQRORJ\ 0HLW<

7KH$FDGHP\DW,,7*XZDKDWLZDVLQDXJXUDWHGE\ 7KH 6FKHPH KDV EHHQ DSSURYHG ZLWK D WDUJHW RI

+RQ·EOH 3ULPH 0LQLVWHU RQ WK-DQXDU\ VNLOOLQJ  FDQGLGDWHV DW  OHYHOV  DW D WRWDO
$VRQVW'HFHPEHUDWRWDORIIDFXOW\ RXWOD\RICFURUHZLWK*UDQWLQ$LGVXSSRUWRI
'HYHORSPHQW3URJUDPPHV )'3V FRYHULQJ C FURUH DSSUR[  LQ D SHULRG RI  \HDUV 7KH
SDUWLFLSDQWVKDYHEHHQFRQGXFWHGE\$FDGHPLHV 6FKHPH LV XQGHU LPSOHPHQWDWLRQ LQ (LJKW  
6WDWHVYL]$QGKUD3UDGHVK WDUJHW 7HODQJDQD
9RFDWLRQDO6NLOOGHYHORSPHQWOHYHO
WDUJHW -DPPX .DVKPLU.DUQDWDND.HUDOD
L  7ZR 6FKHPHV RQ 6NLOO 'HYHORSPHQW LQ (6'0 IRU  OHYHOV RQO\  3XQMDE IRU  WZR OHYHOV  RQO\ 
VHFWRUKDYHEHHQDSSURYHG 8WWDUDNKDQGDQG8WWDU3UDGHVK
D  6FKHPH IRU ÀQDQFLDO DVVLVWDQFH WR VHOHFW
6WDWHV87V IRU 6NLOO 'HYHORSPHQW LQ (6'0
VHFWRU


 $QQXDO5HSRUW

E 6FKHPHIRU¶6NLOO'HYHORSPHQWLQ(6'0IRU LY 6HFWRU 6NLOO &RXQFLO +HDOWK IRU 0HGLFDO

'LJLWDO,QGLD· (OHFWURQLFV
7KLVH[SDQGHG6FKHPHKDVEHHQDSSURYHGZLWKD Y 6HFWRU6NLOO&RXQFLO$XWRPRWLYH IRU$XWRPRWLYH
WDUJHW RI VNLOOLQJ  ODNK FDQGLGDWHV DW D WRWDO (OHFWURQLFV
RXWOD\ RI C FURUH LQ D SHULRG RI  \HDUV IRU
7KH DERYH 6HFWRU 6NLOO &RXQFLOV KDYH WDNHQ XS
LPSOHPHQWDWLRQLQ6WDWHV87V
YDULRXV FRXUVHV IRU VNLOOLQJ RI FDQGLGDWHV LQ WKHLU
8QGHU WKH DERYH WZR 6FKHPHV DQ ([SHUW UHVSHFWLYHGRPDLQV
&RPPLWWHHKDVDSSURYHGDEDVNHWRIFRXUVHVWR
&DSDFLW\%XLOGLQJLQ1LFKH$UHDV
EH FRYHUHG XQGHU ERWK WKH VFKHPHV $V RQ VW
'HFHPEHUXQGHUERWKWKHDERYH6FKHPHVD L  ,QIRUPDWLRQ 6HFXULW\ (GXFDWLRQ DQG
WRWDORIFDQGLGDWHVKDYHEHHQHQUROOHGIRU $ZDUHQHVV ,6($ 3URMHFW3KDVH,,
WUDLQLQJLQYDULRXV6WDWHV87VRXWRIZKLFK 8QGHUWKH,6($3URMHFW3KDVH,,ODNKSHUVRQV
FDQGLGDWHVKDYHFHUWLÀHG DUHSURSRVHGWREHWUDLQHGXQGHUIRUPDODQGQRQ
LL ¶ 6 N L O O  ' H Y H O R S P H Q W  L Q  ( O H F W U R Q L F V IRUPDO FRXUVHV IDFXOW\ WUDLQLQJ HWF ,Q DGGLWLRQ
+DUGZDUH· EHLQJ LPSOHPHQWHG E\ 1&38/ DERXW  3DSHU SXEOLFDWLRQV DUH H[SHFWHG 7KH
1,(/,7&KDQGLJDUK SURMHFWDOVRDLPVWRSURYLGHWUDLQLQJWRPRUHWKDQ
 *RYHUQPHQW RIÀFLDOV DQG FUHDWLQJ PDVV
8QGHU WKLV SURMHFW D 2QH\HDU 'LSORPD FRXUVH LV
LQIRUPDWLRQ VHFXULW\ DZDUHQHVV WDUJHWHG WRZDUGV
FRQGXFWHGMRLQWO\E\1DWLRQDO&RXQFLOIRU3URPRWLRQ
$FDGHPLF XVHUV *RYHUQPHQW XVHUV DQG *HQHUDO
R I  8 U G X  / D Q J X D J H  1 & 3 8 /  D Q G  1 , ( / , 7
XVHUV DSSUR[LPDWHO\FURUH,QWHUQHWXVHUVLQÀYH
&KDQGLJDUK ZLWK D WDUJHW RI WUDLQLQJ 
\HDUV WKURXJK GLUHFW DQG LQGLUHFW PRGH  
FDQGLGDWHV7KHWUDLQLQJLVEHLQJFRQGXFWHGDW
L Q V W L W X W L R Q V  K D Y H  E H H Q  L G H Q W L À H G  I R U  W K H
VHOHFW 1&38/ FHQWUHV ZKHUH UHTXLVLWH WUDLQLQJ
LPSOHPHQWDWLRQ RI DFDGHPLF DFWLYLWLHV XQGHU WKH
IDFLOLWLHV KDV EHHQ VHW XS DQG WUDLQHG IDFXOW\ KDV
SURMHFW $V RQ VW 'HFHPEHU  
EHHQ SURYLGHG E\ 1,(/,7 $V RQ VW 'HFHPEHU
FDQGLGDWHV·XQGHUJRLQJWUDLQLQJWUDLQHGLQYDULRXV
DURXQGFDQGLGDWHVKDYHEHHQHQUROOHG
IRUPDOQRQIRUPDO SURJUDPV  *RYHUQPHQW
XQGHUWKHSURJUDPPH
RIÀFLDOV KDYH EHHQ WUDLQHG DQG  DZDUHQHVV
LLL (IIRUWVWRJHQHUDWHJUHDWHUSDUWLFLSDWLRQRI ZRUNVKRSV DUH FRQGXFWHG FRYHULQJ 
,QGXVWU\ WKURXJK 6HFWRU 6NLOO &RXQFLOV ² SDUWLFLSDQWV
(OHFWURQLFV7HOHFRP,7,7H6
LL &DSDFLW\EXLOGLQJLQWKHDUHDVRI(OHFWURQLF
0HLW< LV DFWLYHO\ DVVRFLDWLQJ DQG VXSSRUWLQJ WKH 3URGXFW'HVLJQDQG3URGXFWLRQ7HFKQRORJ\
YDULRXVVNLOOGHYHORSPHQWDFWLYLWLHVRIWKHIROORZLQJ
7KLV LV DQ RQJRLQJ SURMHFW IRU GHYHORSPHQW RI
6HFWRU 6NLOO &RXQFLOV 66&V  FRQFHUQLQJ WKH
KXPDQ UHVRXUFH DW YDULRXV OHYHOV LQFOXGLQJ
GRPDLQVDGGUHVVHGE\WKLV0LQLVWU\
&HUWLÀFDWH'LSORPD3RVW*UDGXDWHDQG5HVHDUFK
L 6HFWRU6NLOO&RXQFLO(OHFWURQLFV 3URIHVVLRQDOV ZLWK DGHTXDWH FRPSHWHQFH OHYHOV
ZLWK D WDUJHW RI WUDLQLQJ  FDQGLGDWHV LQ ÀYH
LL 6HFWRU6NLOO&RXQFLO,7,7H6
\HDUV 7KH SURMHFW IXUWKHU DLPV DW XSJUDGLQJ WKH
LLL 6HFWRU6NLOO&RXQFLO7HOHFRP FRPSHWHQFH RI ZRUNLQJ SURIHVVLRQDO LQ ,QGLDQ


0LQLVWU\RI(OHFWURQLFV ,QIRUPDWLRQ7HFKQRORJ\ 0HLW<

,QGXVWULHV DQG NQRZOHGJH VNLOOV RI IDFXOW\ RI 7KHSURJUDPPHZLOOUHVXOWLQJHQHUDWLRQRIRYHU

WHFKQLFDO LQVWLWXWLRQV 7KH SURMHFW LV EHLQJ VSHFLDOL]HGPDQSRZHULQWKHDUHDRI9/6,DQG
LPSOHPHQWHGE\1,(/,7&HQWUHVDW$XUDQJDEDG  V\VWHP OHYHO GHVLJQ DW 3K' 3RVW *UDGXDWH DQG
&KHQQDLDQG&'$&+\GHUDEDG8QGHUWKLVSURMHFW *UDGXDWHOHYHODORQJZLWKGHYHORSPHQWRIZRUNLQJ
1,(/,7 $XUDQJDEDG KDV ODXQFKHG 07HFK SDUW SURWRW\SHRIV\VWHPVVXEV\VWHPV$SSOLFDWLRQV
WLPH LQ(OHFWURQLFSURGXFWGHVLJQDQG%7HFK IXOO 6SHFLÀF ,QWHJUDWHG &LUFXLWV $6,&V  )LHOG
WLPH  ERWK LQ DIÀOLDWLRQ ZLWK 'U %$0 8QLYHUVLW\ 3URJUDPPDEOH*DWH$UUD\ )3*$ EDVHGGHVLJQV
$XUDQJDEDGZLWKDYLVLRQWREULGJHWKHJDSEHWZHHQ JHQHUDWLRQ RI ,QWHOOHFWXDO 3URSHUW\ &RUHV
DFDGHPLDDQG,QGXVWU\7KHLPSOHPHQWLQJDJHQFLHV SXEOLFDWLRQ RI SDSHUV EURDGHQLQJ WKH EDVH RI
KDYHODXQFKHGZHHNPRGXODUFRXUVHVLQ(OHFWURQLF TXDOLW\ UHVHDUFK LQ WKH FRXQWU\ E\ VXSSRUWLQJ
3URGXFW 'HVLJQ (PEHGGHG 6\VWHP 'HVLJQ ¶1HWZRUNHG3K'SURJUDPPH·HWF
(OHFWURQLF3DFNDJLQJ:LUHOHVV(PEHGGHG6\VWHP
7HQFOXVWHUVSURMHFWSURSRVDOVKDYHEHHQLQLWLDWHG
)XUWKHUDPRQWK IXOOWLPH 3RVW*UDGXDWH'LSORPD
IRU GHYHORSPHQW RI ZRUNLQJ SURWRW\SH RI
LQ(OHFWURQLF3URGXFW'HVLJQKDVDOVREHHQODXQFKHG
6\VWHPVVXEV\VWHPV 6R&V GHYHORSPHQW RI
$V RQ VW 'HFHPEHU  D WRWDO RI  $SSOLFDWLRQ6SHFLÀF,QWHJUDWHG&LUFXLWV $6,&V DQG
FDQGLGDWHVKDYHEHHQWUDLQHGXQGHUJRLQJWUDLQLQJ )LHOG 3URJUDPPDEOH *DWH $UUD\ )3*$  EDVHG
LQ YDULRXV IRUPDOQRQIRUPDO FRXUVHV ODXQFKHG DW E R D U G  O H Y H O  G H V L J Q        V W X G H Q W V
&'$& +\GHUDEDG DQG 1(,/,7 &HQWUHV DW %7HFK07HFK3K' WUDLQHGLQWKH9/6,'HVLJQDQG
$XUDQJDEDG &KHQQDL UHODWHG DUHD   ,(3V ZHUH RUJDQLVHG DW GLIIHUHQW
5HVRXUFH&HQWUHLQWKHDUHDRI0L[HG6LJQDO62&
LLL 6SHFLDO0DQSRZHU'HYHORSPHQW3URJUDPPH
'HHS 6XE0LFURQ 7HFKQRORJLHV 6\VWHP /HYHO
LQ&KLSVWR6\VWHP'HVLJQ 60'3&6' 
'HVLJQDQG5)6\VWHP'HVLJQ7RPDNHDYDLODEOH
$ SURJUDPPH HQWLWOHG ¶6SHFLDO 0DQSRZHU LQGXVWU\ UHDG\ VSHFLDOL]HG PDQSRZHU LQ 9/6,
'HYHORSPHQW 3URJUDPPH IRU &KLSV WR 6\VWHP GHVLJQ DQG UHODWHG DUHDV DQG WR JHW H[SRVXUH WR
'HVLJQ· ZDV LQLWLDWHG E\ WKH 'HSDUWPHQW XQGHU SUDFWLFDO DVSHFWV RI &KLS GHVLJQLQJ  VWXGHQWV
¶'LJLWDO,QGLD3URJUDPPH·LQ'HFHPEHU7KH 3K'V07HFK %7HFK IURP60'3
REMHFWLYHRIWKHSURJUDPPHLVWREURDGHQWKH9/6, &6'LQVWLWXWHVZHUHVHOHFWHGE\,QWHO%DQJDORUH
'HVLJQ EDVH LQ WKH FRXQWU\ JHQHUDWH VSHFLDOL]HG IRU LQWHUQVKLS RI VL[ PRQWK WR RQH \HDU 6HFRQG
PDQSRZHU LQ WKH DUHD RI 9/6, DQG V\VWHP OHYHO =233 ZRUNVKRS ZDV RUJDQL]HG DW ,,7 %RPED\
GHVLJQDVZHOODVWREULQJLQDFXOWXUHRI6\VWHPRQ DWWHQGHGE\DOO5&V 3,VWRZRUNRXWWKH3URMHFW
&KLS6\VWHP'HVLJQLQJZKLFKZLOOHQVXUHPRYLQJ 3ODQQLQJ0DWUL[ 330  UHYLHZWKHRYHUDOOSURJUHVV
XSLQWKHYDOXHFKDLQLQWKH´6\VWHP'HVLJQ6SDFHµ RIWKHSURMHFW
7KHSURJUDPLVEHLQJLPSOHPHQWHGDWLQVWLWXWLRQV
LY ,QGLDQ 1DQRHOHFWURQLFV 8VHUV 3URJUDP
VSUHDGDFURVVWKHFRXQWU\LQFOXGLQJ,,7V1,7VHWF
,183
7KHVH LQVWLWXWLRQV KDYH EHHQ GLYLGHG LQ WZR
FDWHJRULHV ² 5HVRXUFH &HQWUHV   DQG ,183 3KDVH ,, SURJUDP LQLWLDWHG LQ 0DUFK 
3DUWLFLSDWLQJ ,QVWLWXWLRQV   7KH 5HVRXUFH FRQWLQXHGWRIDFLOLWDWHDQGVXSSRUWWKHJHQHUDWLRQRI
&HQWUHV ZLOO EH WKH 0HQWRULQJ ,QVWLWXWLRQV LQ WKH H[SHUWLVH DQG NQRZOHGJH LQ 1DQRHOHFWURQLFV
SURJUDP7KHSURMHFWKDVDQRXWOD\RIC&URUH WKURXJKSDUWLFLSDWLRQE\H[WHUQDOXVHUVLQ,183DQG
ZLWKGXUDWLRQRI\HDUV WKHLU XWLOL]DWLRQ RI WKH IDFLOLWLHV HVWDEOLVKHG DW WKH


 $QQXDO5HSRUW

&HQWUHVRI([FHOOHQFHLQ1DQRHOHFWURQLFV &(1 DW FRQIHUHQFHVMRXUQDOV ,75$:DWHU,75$ LQ WKH

,,6F%DQJDORUHDQG,,7% U H V H D U F K  D U H D  ¶ ¶ , 7  E D V H G  , Q Q R Y D W L R Q V  L Q
6XVWDLQDELOLW\RI:DWHU5HVRXUFHV ,75$:DWHU ·LV
'XULQJWKH\HDUIDPLOLDUL]DWLRQZRUNVKRSV
IRFXVLQJ RQ WKH PXOWLIDFHWHG FKDOOHQJH RI
RQ 1DQRHOHFWURQLFV KDYH EHHQ RUJDQL]HG DW ,,7
VXVWDLQDEOHDFFHVVWRZDWHUIRUDOOVHFWRUV
%RPED\ ,,6F %DQJDORUH 01,7 -DLSXU DQG 1,7
$JDUWDOD 8QLYHUVLW\ $OVR  KDQGVRQWUDLQLQJ LQ ,75$:DWHUSURMHFWVDUHUXQQLQJLQLQVWLWXWLRQV
YDULRXV FDWHJRULHV VXFK DV )DEULFDWLRQ RI LQYROYLQJIDFXOWLHVDQG3K'VWXGHQWV'XULQJ
FDQWLOHYHUVDQG0(06EDVHGVHQVRUV'PDWHULDO )<  ,75$:DWHU UHVHDUFK FRPPXQLW\ KDV
FKDUDFWHUL]DWLRQDQGGHYLFHIDEULFDWLRQKDYHEHHQ SXEOLVKHG PRUH WKDQ  UHVHDUFK SDSHUV LQ ,75$
FRQGXFWHG 0RUH WKDQ  SHUVRQV KDYH EHHQ OLVWHG FRQIHUHQFHVMRXUQDOV RI LQWHUQDWLRQDO UHSXWH
WUDLQHG RQ QDQRIDEULFDWLRQ WKURXJK +DQGRQ DQG  PRUH SDSHUV ZHUH SXEOLVKHG LQ RWKHU
WUDLQLQJ ZRUNVKRSV DW WKH &(1 IDFLOLWLHV DW ,,6F FRQIHUHQFHVMRXUQDOV
%DQJDORUHDQG,,7%RPED\7KHVPDOODQGPHGLXP
,75$$J )RRG ,75$ KDV WDNHQ XS WKH UHVHDUFK
WHUPSURMHFWVEHLQJH[HFXWHGXQGHU,1833KDVH,,
DUHD¶,7EDVHG7UDQVIRUPDWLRQVLQ,QGLDQ$JULFXOWXUH
KDYH UHVXOWHG LQ DURXQG  UHVHDUFK SXEOLFDWLRQV
DQG)RRG ,75$$J )RRG ·WRFUHDWHFROODERUDWLYH
DQGSDWHQWVE\WKHUHVHDUFKHUVIURPDOORYHUWKH
PXOWLLQVWLWXWLRQDO LQWHUGLVFLSOLQDU\ WHDPV WR
FRXQWU\GXULQJWKHSDVWRQH\HDU
FDWDSXOW WKH VWDWH RI $JULFXOWXUH  )RRG LQ
Y ,QIRUPDWLRQ7HFKQRORJ\5HVHDUFK$FDGHP\ ,QGLD,QGLDXVLQJ,7LQWRDQHZRUELWRISURGXFWLYLW\
,75$
YL 6LPXODWLRQ &HQWUH IRU 3RZHU (OHFWURQLFV
,75$LVDQHQDEOLQJSURJUDPPHLQLWLDWHGE\0LQLVWU\ $SSOLFDWLRQV
RI(OHFWURQLFVDQG,QIRUPDWLRQ7HFKQRORJ\ 0HLW< 
$ 6LPXODWLRQ &HQWUH HVWDEOLVKHG DW ,,7%RPED\ WR
*RYHUQPHQWRI,QGLDLQWKH\HDUWRKHOSEXLOGD
VLPXODWH3RZHU(OHFWURQLFVDSSOLFDWLRQVKDVWUDLQHG
QDWLRQDO UHVRXUFH IRU DGYDQFLQJ WKH TXDOLW\ DQG
DERXW  FDQGLGDWHV VR IDU LQFOXGLQJ VWXGHQWV
TXDQWLW\RI5 'LQ,QIRUPDWLRQDQG&RPPXQLFDWLRQV
IDFXOW\ PHPEHUV DQG LQGXVWU\ SHUVRQDOV $
7HFKQRORJLHV ,&7  DQG (OHFWURQLFV DQG LWV
UHSRVLWRU\ RI  VLPXODWLRQ H[DPSOHV KDV EHHQ
DSSOLFDWLRQVLQ,7DQGUHODWHGLQVWLWXWLRQVDFURVV,QGLD
GHYHORSHG
,75$LVRSHUDWLQJDVDGLYLVLRQRI0HGLD/DE$VLD
$VDSDUWRIDZDUHQHVVSURJUDPVÀYHVKRUWWHUP
,75$²0RELOH ,75$ LQ WKH UHVHDUFK DUHD ¶0RELOH
FRXUVHVRQYDULRXVWKHPHVRI3RZHU(OHFWURQLFVOLNH
&RPSXWLQJ 1HWZRUNLQJ  $SSOLFDWLRQ ,75$
3RZHU (OHFWURQLFV $SSOLFDWLRQV LQ 0LFURJULGV
0RELOH · WDUJHWV DSSOLFDWLRQV RI ,7 LQ +HDOWKFDUH
HQDEOLQJ *UHHQ (QHUJ\ $SSOLFDWLRQ RI 3RZHU
7UDQVSRUWDQG'LVDVWHU0DQDJHPHQW,75$0RELOH
(OHFWURQLFV WR 5HQHZDEOH (QHUJ\ $SSOLFDWLRQV RI
SURMHFWVDUHUXQQLQJLQLQVWLWXWLRQVLQYROYLQJ
FXVWRP 3RZHU GHYLFHV IRU 3RZHU 4XDOLW\
IDFXOWLHVDQG3K'VWXGHQWV'XULQJ)<
,PSURYHPHQW $GYDQFHV LQ SRZHU (OHFWURQLFV IRU
,75$0RELOH UHVHDUFK FRPPXQLW\ KDV SXEOLVKHG
0DFKLQHGULYHVDQG6XVWDLQDEOH'HYHORSPHQWDQG
PRUH WKDQ  UHVHDUFK SDSHUV LQ ,75$ OLVWHG
$GYDQFHV LQ 3RZHU (OHFWURQLFV KDYH EHHQ
FRQIHUHQFHVMRXUQDOV RI LQWHUQDWLRQDO UHSXWH DQG
RUJDQL]HGDWGLIIHUHQWJHRJUDSKLFDOORFDWLRQVLQWKH
 PRUH SDSHUV ZHUH SXEOLVKHG LQ RWKHU
FRXQWU\


0LQLVWU\RI(OHFWURQLFV ,QIRUPDWLRQ7HFKQRORJ\ 0HLW<

*UDVVURRWOHYHO WKURXJK &6&V· XQGHU WKH 'LJLWDO 6DNVKDUWD $EKL\DQ

',6+$  LQ 1RYHPEHU  IRU FRQGXFWLQJ DZDUHQHVV
7ZR6FKHPHVIRUVSUHDGLQJ'LJLWDO/LWHUDF\WR
VHVVLRQV RQ GLJLWDO ÀQDQFH RSWLRQV DYDLODEOH IRU UXUDO
WKHPDVVHVLQWKH&RXQWU\ FLWL]HQV DV ZHOO DV HQDEOLQJ YDULRXV PHFKDQLVPV RI
L  ,70DVV/LWHUDF\ 1DWLRQDO'LJLWDO/LWHUDF\ GLJLWDO ÀQDQFLDO VHUYLFHV VXFK DV 8QVWUXFWXUHG
0LVVLRQ 6XSSOHPHQWDU\ 6HUYLFH 'DWD 866'  8QLÀHG 3D\PHQW
,QWHUIDFH 83,  &DUGV3RLQW RI 6DOHV 3R6  $DGKDDU
,QOLQHZLWKWKHREMHFWLYHRIWKH1DWLRQDO3ROLF\RQ,7 (QDEOHG3D\PHQW6\VWHP $(36 DQGH:DOOHWHWF$VRQ
 WR PDNH RQH SHUVRQ HOLWHUDWH LQ HYHU\ VW 'HFHPEHU  DURXQG  FURUH EHQHÀFLDULHV
KRXVHKROG LQ WKH FRXQWU\ D VFKHPH IRU ,7 0DVV D Q G  D U R X Q G       O D N K  0 H U F K D Q W V  K D Y H  E H H Q
/LWHUDF\ UHQDPHG DV 1DWLRQDO 'LJLWDO /LWHUDF\ WUDLQHGHQDEOHGXQGHUWKLVSURJUDPPH
0LVVLRQ ZDVODXQFKHGZLWKDQREMHFWLYHWRSURYLGH &UHDWHVNLOOGHYHORSPHQWIDFLOLWLHVLQGHSULYHG
,7 WUDLQLQJ UHOHYDQW WR WKH QHHG RI WKH WUDLQHH WR DUHDVWKURXJKVWUHQJWKHQLQJRI1DWLRQDO,QVWLWXWHRI
HQDEOH WKH EHQHÀFLDULHV WR XVH ,7 DQG UHODWHG (OHFWURQLFVDQG,QIRUPDWLRQ7HFKQRORJ\ 1,(/,7
DSSOLFDWLRQV IRU WKHLU OLYHOLKRRG HDUQLQJ DQG D  8SJUDGLQJWKHVL[H[LVWLQJFHQWUHVRIWKH1,(/,7LQWKH
HPSOR\DELOLW\ZLWKDQRXWOD\RICFURUH *UDQW 1RUWK(DVWHUQ 5HJLRQ DW *XZDKDWL ,PSKDO 6KLOORQJ
LQDLG IURP 0HLW< C  FURUH  7KH  WUDLQLQJ ,WDQDJDU*DQJWRNDQG$L]ZDODQG
WDUJHWRIODNKSHUVRQVXQGHUWKLVVFKHPHKDV E  6HWWLQJ XS RI WHQ QHZ ([WHQVLRQ FHQWUHV DQG
EHHQDFKLHYHGLQ-XQH XSJUDGLQJWZRH[LVWLQJ([WHQVLRQFHQWUHV
LL  6FKHPH IRU ¶'LJLWDO 6DNVKDUWD $EKL\DQ· 6L[WHHQ   RXW RI SURSRVHG (LJKWHHQ  
',6+$  &HQWUHV([WHQVLRQ&HQWUHVDUHRSHUDWLRQDODVRQGDWH
7KHQHZVHYHQ([WHQVLRQ&HQWUHVDUHLPSDUWLQJWUDLQLQJ
7KLV H[SDQGHG VFKHPH ZDV DSSURYHG E\
IURP UHQWHG EXLOWXS VSDFH DW 6LOFKDU -RUKDW DQG
*RYHUQPHQWRQWK'HFHPEHUXQGHU¶'LJLWDO .RNUDMKDU LQ $VVDP 3DVLJKDW LQ $UXQDFKDO 3UDGHVK
,QGLD 3URJUDPPH· ZLWK WKH REMHFWLYH WR PDNH 6HQDSDWL  &KXUDFKDQGSXU LQ 0DQLSXU /XQJOHL LQ
DGGLWLRQDO  ODNK SHUVRQV GLJLWDOO\ OLWHUDWH LQ D 0L]RUDPDQG7XUDLQ0HJKDOD\D(IIRUWVDUHEHLQJPDGH
SHULRGRIIRXU\HDUV IRU DOORWPHQWKLULQJ RI EXLOWXS VSDFH IRU UHPDLQLQJ 
([WHQVLRQ &HQWUHV DW 'LEUXJDUK $VVDP  DQG 7H]X LQ
$VRQVW'HFHPEHUXQGHUERWKWKHDERYH
$UXQDFKDO 3UDGHVK $ WRWDO RI  VWXGHQWV ZHUH
6FKHPHV DURXQG  ODNK SHUVRQV KDYH EHHQ
WUDLQHGVRIDUXQGHUWKHSURMHFW3RVVHVVLRQRIODQGIRU
WUDLQHG DQG  ODNK FDQGLGDWHV KDYH EHHQ FRQVWUXFWLRQRISHUPDQHQWFDPSXVHVKDVEHHQREWDLQHG
FHUWLÀHG DWORFDWLRQVLQ3DVLJKDW*XZDKDWL.RNUDMKDU-RUKDW
$VDIROORZXSWRWKHDERYHWZRVFKHPHVDQHZVFKHPH 7H]SXU 'LEUXJDUK 6LOFKDU ,PSKDO 6HQDSDWL
HQWLWOHG´'LJLWDO/LWHUDF\0LVVLRQRQ5XUDO,QGLDµWRFRYHU &KXUDFKDQGSXU $L]DZO /XQJOHL *DQJWRN DQG
FURUHEHQHÀFLDULHVLQUXUDO,QGLDKDVEHHQDQQRXQFHG &KXFKX\LPODQJODQGLV\HWWREHREWDLQHGDW7H]X7XUD
E\+RQ·EOH)LQDQFH0LQLVWHULQ%XGJHW7KHQHZ 6KLOORQJ DQG ,WDQDJDU 7KUHH &HQWUDO 368V KDYH EHHQ
VFKHPHLVXQGHUVXEPLVVLRQIRUREWDLQLQJDSSURYDOV DSSRLQWHGDV3URMHFW0DQDJHPHQW&RQVXOWDQWV 30&V 
IRU FRQVWUXFWLRQ RI SHUPDQHQW 1,(/,7 &HQWUHV 
LLL   'LJLWDO )LQDQFH IRU 5XUDO ,QGLD &UHDWLQJ
([WHQVLRQ&HQWUHV1,(/,7LVSUHVHQWO\RIIHULQJWUDLQLQJV
$ZDUHQHVVDQG$FFHVVWKURXJK&6&V·
FRXUVHV IURP  ORFDWLRQV LQ DOO HLJKW   1( 6WDWHV
*RYHUQPHQWDSSURYHGDVXEFRPSRQHQWQDPHG¶'LJLWDO FRYHULQJWZRDGGLWLRQDOORFDWLRQVDW$JDUWDODDQG.RKLPD
)LQDQFHIRU5XUDO,QGLD&UHDWLQJ$ZDUHQHVVDQG$FFHVV XQGHURWKHUIXQGHGSURMHFWVE\WKH0HLW<


 $QQXDO5HSRUW

6HWWLQJXSXSJUDGDWLRQRI1,(/,7&HQWUHVDW6ULNDNXODP ‡ &DSDFLW\ EXLOGLQJ RI 6&  67 VWXGHQWV RI 1RUWK

3DWQD5DQFKLDQG5RSDULVXQGHUZD\ 2ULVVD8QLYHUVLW\ LWVDIÀOLDWHGFROOHJHVLQ,7WRROV²
2GLVKD
,7IRU0DVVHV3URJUDPPH
‡ ,7LQIUDVWUXFWXUHFUHDWLRQDQGFDSDFLW\EXLOGLQJLQ,7
'HYHORSPHQWRI:HDNHU6HFWLRQV
WRROVRI6FKHGXOHG7ULEHV 67 FDQGLGDWHV0DGK\D
$V D SDUW RI LWV LQFOXVLYH GHYHORSPHQW VWUDWHJ\ WKH 3UDGHVK
*RYHUQPHQW LV FRPPLWWHG WR WKH ZHOIDUH DQG
‡ (PSRZHULQJ XQGHUSULYLOHJHG67RIIRXUEDFNZDUG
GHYHORSPHQWRIZHDNHUVHFWLRQV$FFRUGLQJO\0HLW<KDV
GLVWULFWVRI1DJDODQGWKURXJK,&7VNLOOVWUDLQLQJ
EHHQ LPSOHPHQWLQJ QXPEHU RI ,&7 WUDLQLQJ  FDSDFLW\
1DJDODQG
EXLOGLQJ SURMHFWV LQ GLIIHUHQW 6WDWHV  87V WDUJHWHG DW
WKHVHVHFWLRQVWRLPSURYH,7OLWHUDF\VNLOOHQKDQFHPHQW *HQGHU(PSRZHUPHQW
DQGWRSURPRWHWKHXVHRI,&7WRROV
*HQGHU(PSRZHUPHQWWKURXJK,&7KDVEHHQRQHRIWKH
7KHIROORZLQJSURMHFWVZHUHLQLWLDWHGRQJRLQJ PDMRULQLWLDWLYHVRIWKH*RYHUQPHQW7KHREMHFWLYHRIWKLV
LQLWLDWLYHLVWRHPSRZHUZRPHQWKURXJKFDSDFLW\EXLOGLQJ
3URMHFWVFRYHULQJ6FKHGXOHG&DVWH 6& EHQHÀFLDULHV
LQ,&7DQG,7WUDLQLQJVRDVWRHQKDQFHWKHLUHPSOR\DELOLW\
‡ &DSDFLW\ EXLOGLQJ IRU HPSRZHUPHQW RI 6& $FFRUGLQJO\ 0HLW< KDV EHHQ LPSOHPHQWLQJ QXPEHU RI
FDQGLGDWHVRQ,&7DW&RRFK%HKDUGLVWULFWRI:HVW , & 7  W U D L Q L Q J    F D S D F L W \  E X L O G L Q J  S U R M H F W V  I R U
%HQJDO:HVW%HQJDO HPSRZHUPHQWRIZRPHQLQGLIIHUHQW6WDWHV87V
‡ ,7 WUDLQLQJ IRU 6FKHGXOHG &DVWH 6&  FDQGLGDWHV  7KHIROORZLQJSURMHFWVZHUHLQLWLDWHGRQJRLQJ
3XQMDE
3URMHFWVFRYHULQJ*HQGHU :RPHQ EHQHÀFLDULHV
‡ ,&7WUDLQLQJWR6&67:RPHQ-DPPX .DVKPLU
‡ ,7RULHQWHG+DQGORRP6HFWRU'HYHORSPHQW3URJUDP
‡ &DSDFLW\ EXLOGLQJ RI 6&  67 VWXGHQWV RI 1RUWK IRUFUHDWLYHGHVLJQGHYHORSPHQW GHSOR\PHQWE\
2ULVVD8QLYHUVLW\ LWVDIÀOLDWHGFROOHJHVLQ,7WRROV² $UWLVLDQV:HDYHUVRI-KDUNKDQG 2GLVKD6WDWH²
2GLVKD -KDUNKDQG2GLVKD
‡ 7UDLQLQJDQG&HUWLÀFDWLRQRI6FKHGXOHG&DVWH 6&  ‡ 3URMHFWIRUWKHEHQHÀWRI*LUOV:RPHQ+DU\DQD
VWXGHQWV LQ MRE RULHQWHG FRXUVHV LQ ,QIRUPDWLRQ
‡ ,&7WUDLQLQJWR6&67:RPHQ-DPPX .DVKPLU
7HFKQRORJ\².HUDOD
‡ ,&7 EDVHG LQWHJUDWHG GHYHORSPHQW SURJUDP IRU
 3URMHFWVFRYHULQJ6FKHGXOHG7ULEH 67 EHQHÀFLDULHV
ZRPHQ HPSRZHUPHQW LQ /DOODSXUD FUDIW FOXVWHU RI
‡ ,7 VNLOOV  H,QFOXVLRQ WKURXJK ORZ FRVW DFFHVV 9DUDQDVL²8WWDU3UDGHVK
GHYLFHV EDVHG DZDUHQHVV SURJUDP IRU 6FKHGXOHG
‡ 7UDLQLQJ RI :RPHQ LQ 'HOKL IRU FUHDWLQJ ZRPHQ
7ULEHV².HUDOD
HQWUHSUHQHXUV  GDWD HQWU\ RSHUDWRUV WR SURPRWH
‡ ,&7WUDLQLQJWR6&67:RPHQ-DPPX .DVKPLU DZDUHQHVV DQG WR HQKDQFH YRFDWLRQDO VNLOO LQ ,7 ²
‡ &DSDFLW\EXLOGLQJLQ,7VNLOOVRI6FKHGXOHG7ULEHV 67  'HOKL
FDQGLGDWHV&KKDWWLVJDUK ‡ 6NLOO  (QKDQFHPHQW    +HDOWK $ZDUHQHVV  YLD
‡ &DSDFLW\EXLOGLQJLQ,7VNLOOVRI6FKHGXOHG7ULEHV 67  .QRZOHGJH7UDQVIRUPDWLRQXVLQJ,&7VIRU:RPHQ
FDQGLGDWHV$QGDPDQ 1LFREDU (PSRZHUPHQWLQ%LWKRRU&OXVWHURI.DQSXU²8WWDU
3UDGHVK
‡ &DSDFLW\ EXLOGLQJ IRU WKH XSOLIWPHQW RI 
6FKHGXOHG7ULEHV 67 FDQGLGDWHV 8QLRQ7HUULWRU\
RI/DNVKDGZHHS


 &+$37(5
67$78725<
25*$1,6$7,216

$XWKHQWLFDWLRQIUDPHZRUNXQGHUWKH,7$FW FRXQWU\ JUHZ WR PRUH WKDQ  PLOOLRQ E\ -DQXDU\
&RQWUROOHURI&HUWLI\LQJ$XWKRULWLHV &&$ DQGFRQWLQXHVWRJURZUDSLGO\DQGLVH[SHFWHG
7KH ,QIRUPDWLRQ 7HFKQRORJ\ $FW  IDFLOLWDWHV WRLQFUHDVHVLJQLÀFDQWO\ZLWKWKHODXQFKRIYDULRXVH
DFFHSWDQFH RI (OHFWURQLF 5HFRUGV DQG (OHFWURQLF JRYHUQDQFHHFRPPHUFH SURJUDPPHV DV ZHOO DV
6LJQDWXUHVWKURXJKDOHJDOIUDPHZRUNIRUHVWDEOLVKLQJ LQLWLDWLYHVVXFKDV$DGKDUEDVHG'LJLWDO6LJQDWXUH
WUXVW LQ H&RPPHUFH DQG H*RYHUQDQFH )RU &HUWLÀFDWH '6& LVVXDQFHDQGIUDPHZRUNIRUH6LJQ
DXWKHQWLFDWLRQ RI HOHFWURQLF WUDQVDFWLRQV XVLQJ WRIDFLOLWDWHRQOLQHHOHFWURQLFVLJQDWXUHV
HOHFWURQLF VLJQDWXUHV WKH &RQWUROOHU RI &HUWLI\LQJ )RUHQVXULQJFRQWLQXHGWUXVWLQWKLVDXWKHQWLFDWLRQ
$XWKRULWLHV &&$ OLFHQVHV&HUWLI\LQJ$XWKRULWLHVWR IUDPHZRUN WKH $QQXDO &RPSOLDQFH $XGLWV RI
LVVXH(OHFWURQLF6LJQDWXUH&HUWLÀFDWHVXQGHUWKH,7 &HUWLI\LQJ $XWKRULWLHV ZHUH FRQGXFWHG DV SHU WKH
$FW   7HQ &HUWLI\LQJ $XWKRULWLHV &$  DUH UHTXLUHPHQWV RI WKH ,QIRUPDWLRQ 7HFKQRORJ\ $FW
RSHUDWLRQDO FXUUHQWO\ DQG WKH WRWDO QXPEHU RI ,QDGGLWLRQWRWKHUHJXODU$QQXDO&RPSOLDQFH
(OHFWURQLF 6LJQDWXUH &HUWLÀFDWHV LVVXHG LQ WKH $XGLWV6SHFLDO&KHFN$XGLWVZHUHDOVRFDUULHGRXW


 $QQXDO5HSRUW

IRUHQVXULQJFRPSOLDQFHWRWKH,GHQWLW\9HULÀFDWLRQ 7R IXUWKHU HQKDQFH WKH OHYHO RI WUXVW LQ GLJLWDO
*XLGHOLQHV ,9* LVVXHGE\&&$WREHIROORZHGLQ VLJQDWXUHV WKH SURFHVV RI 2SHUDWLRQDOLVDWLRQ RI
WKH 'LJLWDO 6LJQDWXUH &HUWLÀFDWH '6&  LVVXDQFH 2QOLQH &HUWLÀFDWH 6WDWXV 3URWRFRO 2&63  VHUYLFH
SURFHVV IRUFHUWLÀFDWHVLVVXHGE\WKH5RRW&$RI&&$KDV
H6LJQRQOLQHHOHFWURQLFVLJQDWXUH6HUYLFH FRPPHQFHG

7KHUHDUHOLFHQVHG&$V YL]H0XGKUD Q &RGH 'LJLWDO/RFNHU

&'$& 16'/ ZKRDUHSURYLGLQJH6LJQVHUYLFHLQ 8QGHUWKH'LJLWDO,QGLD3URJUDPPH*RYHUQPHQWRI
WKHFRXQWU\DQGWRWDOQXPEHURIH6LJQFHUWLÀFDWHV ,QGLD KDV SODQQHG WR SURYLGH VKDUHDEOH SULYDWH
LVVXHGE\WKHVH&$VLVPLOOLRQE\-DQXDU\ VSDFH RQ D SXEOLF FORXG DQG WR GLJLWL]H DOO
,QLWLDWLYHV DUH EHLQJ WDNHQ LQ WKLV UHVSHFW WKURXJK GRFXPHQWVDQGUHFRUGVRIWKHFLWL]HQVDQGPDNH
FRRUGLQDWHG LQWHUDFWLRQV EHWZHHQ WKH H WKHP DYDLODEOH RQ D UHDOWLPH EDVLV 7KLV
JRYHUQDQFH HFRPPHUFH DSSOLFDWLRQ VHUYLFH PHFKDQLVP RI ¶H'RFXPHQW UHSRVLWRULHV· DQG
SURYLGHUV DQG WKHVH &HUWLI\LQJ $XWKRULWLHV WR ¶'LJLWDO /RFNHUV· ZLOO JUHDWO\ LPSURYH  FLWL]HQ
IDFLOLWDWHWKHPD[LPXPXVHRIH6LJQ FRQYHQLHQFH DQG XVKHU LQ SDSHUOHVV WUDQVDFWLRQV
7HFKQLFDO,QIUDVWUXFWXUH DFURVVWKHHQWLUHHFRV\VWHPRISXEOLFVHUYLFHV

7KH5RRW&HUWLI\LQJ$XWKRULW\RI,QGLD 5&$, VHWXS ,QRUGHUWRLPSOHPHQW'LJLWDO/RFNHU6\VWHPLQWKH

E\WKH&&$LVDWWKHURRWRIWUXVWIRUDXWKHQWLFDWLRQ FRXQWU\ WKH 1RWLÀFDWLRQ ´,QIRUPDWLRQ 7HFKQRORJ\
WKURXJK 'LJLWDO 6LJQDWXUHV 5HSRVLWRU\ FRQWDLQLQJ 3UHVHUYDWLRQ DQG 5HWHQWLRQ RI ,QIRUPDWLRQ E\
FHUWLÀFDWHVLVVXHGE\&&$WRWKHOLFHQVHG&$VDQG LQWHUPHGLDULHV SURYLGLQJ 'LJLWDO /RFNHU IDFLOLWLHV 
WKH &HUWLÀFDWHV LVVXHG E\ WKH OLFHQVHG &$V WR 5XOHV µ 1R *65  (  GDWHG VW -XO\
VXEVFULEHUV KDV EHHQ HVWDEOLVKHG DQG LV EHLQJ KDVEHHQLVVXHGE\WKH*RYHUQPHQWRI,QGLD
RSHUDWHG E\ WKH 2IÀFH RI &&$ IRU FKHFNLQJ %\ 2IÀFH 2UGHU 1R   (*,,   3DUW,, 
FRPSOLDQFHZLWKWKH,QWHURSHUDELOLW\*XLGHOLQHVDQG GDWHG  WKH &RQWUROOHU RI &HUWLI\LQJ
IRU6WDWLVWLFDO3XUSRVHV7KH'LVDVWHU5HFRYHU\6LWH $XWKRULWLHV KDV EHHQ JLYHQ DGGLWLRQDO FKDUJH WR
LV DOVR IXOO\ RSHUDWLRQDO 0LJUDWLRQ RI 5RRW &$ IXQFWLRQ DV ¶&RQWUROOHU RI 'LJLWDO /RFNHU $XWKRULW\
SK\VLFDOLQIUDVWUXFWXUH %LRPHWULFGHYLFH&DPHUD &'/$ ·+HQFH2IÀFHRI&&$KDVEHHQLQYROYHGLQ
'95HWF DQG6HUYHUVZRUNVWDWLRQVDWSULPDU\VLWH SUHSDULQJWKHSURFHVVIRUOLFHQVLQJRI'LJLWDO/RFNHU
'HOKL IURP H[LVWLQJREVROHWH V\VWHPV WR QHZ 6HUYLFH 3URYLGHUV  7KLV LQFOXGHV ÀQDOL]DWLRQ RI
V\VWHPV DUH SODQQHG DQG SURFHVV KDV EHHQ DSSOLFDWLRQ IRUP ÀQDQFLDO HOLJLELOLW\ FULWHULD
LQLWLDWHG WHFKQLFDO VSHFLÀFDWLRQV 'LJLWDO /RFNHU 3UDFWLFH
6WDWHPHQWDQGWKHXQGHUWDNLQJWREHJLYHQE\WKH
(QKDQFLQJWUXVW '/63 DPRQJ RWKHUV 7KLV ZLOO IDFLOLWDWH LQ
&&$·V 5RRW FHUWLÀFDWH V   VSHFLDO SXUSRVH LPSOHPHQWDWLRQ RI 'LJLWDO /RFNHU 6\VWHP LQ WKH
FHUWLÀFDWHV KDYH EHHQ LQVWDOOHG LQ 0LFURVRIW ,( FRXQWU\
%URZVHUDQGLQ$GREHSURGXFWV3URFHVVKDVEHHQ ,QWHUQDWLRQDO&RRSHUDWLRQ
LQLWLDWHG IRU 3UHLQVWDOODWLRQ RI 5RRW &HUWLÀFDWH LQ
0R]LOOD)LUHIR[%URZVHU 0HPRUDQGXPRI8QGHUVWDQGLQJZLWKYDULRXV3XEOLF
.H\,QIUDVWUXFWXUH 3., UHJXODWRUVRIRWKHUFRXQWULHV


0LQLVWU\RI(OHFWURQLFV ,QIRUPDWLRQ7HFKQRORJ\ 0HLW<

IRU0XWXDO5HFRJQLWLRQRI&HUWLI\LQJ$XWKRULWLHVDUH WKHQ3ODQQLQJ&RPPLVVLRQ QRZ1,7,$D\RJ YLGH

EHLQJSXUVXHG)RUSURPRWLRQRI3.,GLVFXVVLRQV LWV*D]HWWH1RWLÀFDWLRQ GDWHGWK -DQXDU\
PHHWLQJVZHUHKHOGZLWKWKHRIÀFLDOVIURP5HSXEOLF ZLWKDYLVLRQ´7RHPSRZHUUHVLGHQWVRI,QGLDZLWKD
RI .D]DNKVWDQ $Q 0R8 ZKLFK KDG EHHQ VLJQHG XQLTXHLGHQWLW\DQGDGLJLWDOSODWIRUPWRDXWKHQWLFDWH
EHWZHHQ.RUHD,QIRUPDWLRQ6HFXULW\$JHQF\ .,6$  DQ\WLPH DQ\ZKHUHµ /DWHU RQ WK  6HSWHPEHU
 &&$ WR UHFRJQL]H &HUWLI\LQJ $XWKRULWLHV IRU  WKH *RYHUQPHQW UHYLVHG WKH $OORFDWLRQ RI
DFFHSWLQJGLJLWDOVLJQDWXUHFHUWLÀFDWHVRIHDFKRWKHU %XVLQHVV5XOHVWRDWWDFKWKH8,'$,WRWKH0LQLVWU\RI
ZDVIROORZHGXSIRULPSOHPHQWDWLRQ (OHFWURQLFV ,QIRUPDWLRQ7HFKQRORJ\ 0HLW< RIWKH
7UDLQLQJ$ZDUHQHVV*HQHUDWLRQ 3URPRWLRQ WKHQ 0LQLVWU\ RI &RPPXQLFDWLRQV DQG ,QIRUPDWLRQ
RI'LJLWDO6LJQDWXUHV 7HFKQRORJ\

3., %RG\ RI .QRZOHGJH 'HYHORSPHQW  7KH $DGKDDU 7DUJHWHG 'HOLYHU\ RI )LQDQFLDO
'LVVHPLQDWLRQSURJUDPVRQ'LJLWDO6LJQDWXUHV3., DQG 2WKHU 6XEVLGLHV %HQHÀWV DQG 6HUYLFHV 
 H6LJQ KDYH EHHQ FRQGXFWHG DW 0XPEDL $FW
7KLUXYDQDQWKDSXUDP .RONDWD 5DQFKL -DLSXU DQG 7KH *RYHUQPHQW KDG LQWURGXFHG WKH $DGKDDU
5DLSXU &KKDWWLVJDUK DQGLQWHUDFWLRQVDUHJRLQJRQ 7DUJHWHG'HOLYHU\RI)LQDQFLDODQG2WKHU6XEVLGLHV
ZLWK RWKHU 6WDWHV DQG 87V IRU RUJDQLVLQJ VXFK %HQHÀWVDQG6HUYLFHV %LOOLQWKH3DUOLDPHQW
ZRUNVKRSV$OVRWKHFRQWHQWLVPDGHDYDLODEOHRQ RQZKLFKZDVGLVFXVVHGDQGSDVVHG
VRFLDOPHGLDFKDQQHOVOLNH<RX7XEH)DFHERRN  E\WKH3DUOLDPHQWRQ7KH$FWKDVVLQFH
7ZLWWHU UHFHLYHGWKHDVVHQWRIWKH3UHVLGHQWRQ
1HZVSDSHU DGYHUWLVHPHQWV IRU JHQHUDWLQJ DQGKDVEHHQSXEOLVKHGLQWKH2IÀFLDO*D]HWWHRI
DZDUHQHVVDERXWH6LJQKDYHEHHQSXEOLVKHGDQG ,QGLD([WUDRUGLQDU\3DUW,,6HFWLRQGDWHG
PRUH DUH LQ WKH SLSHOLQH :HE DGYHUWLVHPHQW  DV $DGKDDU 7DUJHWHG 'HOLYHU\ RI )LQDQFLDO
JHQHUDWLQJDZDUHQHVVRIGR·V GRQW·VDQGRWKHU DQG 2WKHU 6XEVLGLHV %HQHÀWV DQG 6HUYLFHV  $FW
HPHUJLQJLVVXHVUHODWLQJWR'LJLWDO6LJQDWXUHVKDYH  $FW1RRI  ´$DGKDDU$FWµ DQGKDV
EHHQSXEOLVKHG FRPH LQWR IRUFH IURP  WKH GDWH RI
QRWLÀFDWLRQRIWKHVDPH
 8QLTXH ,GHQWLÀFDWLRQ $XWKRULW\ RI ,QGLD
8,'$, 7KH $FW SURYLGHV IRU JRRG JRYHUQDQFH HIÀFLHQW
WUDQVSDUHQW DQG WDUJHWHG GHOLYHU\ RI VXEVLGLHV
  ,QWURGXFWLRQ 7KH 8QLTXH ,GHQWLÀFDWLRQ EHQHÀWVDQGVHUYLFHVWKHH[SHQGLWXUHIRUZKLFKLV
$XWKRULW\RI,QGLD 8,'$, LVDVWDWXWRU\DXWKRULW\ LQFXUUHG IURP WKH &RQVROLGDWHG )XQG RI ,QGLD WR
HVWDEOLVKHG XQGHU WKH SURYLVLRQV RI WKH $DGKDDU LQGLYLGXDOV UHVLGLQJ LQ ,QGLD WKURXJK DVVLJQLQJ RI
7DUJHWHG 'HOLYHU\ RI )LQDQFLDO DQG 2WKHU XQLTXHLGHQWLW\QXPEHUV FDOOHG$DGKDDUQXPEHUV 
6XEVLGLHV %HQHÀWV DQG 6HUYLFHV  $FW  WR VXFK LQGLYLGXDOV DQG IRU PDWWHUV FRQQHFWHG
´$DGKDDU$FWµ RQWK -XO\E\WKH WKHUHZLWKRULQFLGHQWDOWKHUHWR
*RYHUQPHQW RI ,QGLD XQGHU WKH 0LQLVWU\ RI
(OHFWURQLFVDQG,QIRUPDWLRQ7HFKQRORJ\ 0HLW<  )XUWKHUWKHIROORZLQJUHJXODWLRQVDUHQRWLÀHGXQGHU
WKHVDLG$DGKDDU$FW
3ULRU WR LWV HVWDEOLVKPHQW DV D VWDWXWRU\ DXWKRULW\
8,'$,ZDVIXQFWLRQLQJDVDQDWWDFKHGRIÀFHRIWKH ‡ 8QLTXH ,GHQWLÀFDWLRQ $XWKRULW\ RI ,QGLD


 $QQXDO5HSRUW

7UDQVDFWLRQ RI %XVLQHVV DW 0HHWLQJV RI WKH KDVVHYHQIXQFWLRQDOGLYLVLRQVKHDGHGE\D'HSXW\

$XWKRULW\ 5HJXODWLRQV 1RRI  'LUHFWRU *HQHUDO -RLQW 6HFUHWDU\ OHYHO RIÀFHU 
‡ $DGKDDU (QUROPHQWDQG8SGDWH 5HJXODWLRQV $GGLWLRQDOO\HDFKRIWKHHLJKW  5HJLRQDO2IÀFHVLV
 1RRI  KHDGHGE\D'HSXW\'LUHFWRU*HQHUDO

‡ $DGKDDU $XWKHQWLFDWLRQ  5HJXODWLRQV  9DOXH3URSRVLWLRQRI$DGKDDU

1RRI 8QLTXHQHVV
‡ $DGKDDU 'DWD6HFXULW\ 5HJXODWLRQV 1R $Q\LQGLYLGXDOLUUHVSHFWLYHRIDJHDQGJHQGHUZKR
RI  LV D UHVLGHQW LQ ,QGLD DQG VDWLVÀHV WKH YHULÀFDWLRQ
‡ $DGKDDU 6KDULQJRI,QIRUPDWLRQ 5HJXODWLRQV SURFHVV ODLG GRZQ E\ WKH 8,'$, FDQ HQUROO IRU
 1RRI  $DGKDDU $Q LQGLYLGXDO LV UHTXLUHG WR HQUROO RQO\
RQFH WKH SURFHVV LV IUHH RI FRVW ,Q FDVH WKH
$NH\REMHFWLYHRI$DGKDDUSURJUDPLVWRSURYLGHDQ UHVLGHQWHQUROOVPRUHWKDQRQFHRQO\RQH$DGKDDU
LGHQWLW\LQIUDVWUXFWXUHIRUGHOLYHU\RIYDULRXVVRFLDO VKDOOEHJHQHUDWHGDVWKH8QLTXHQHVVLVDFKLHYHG
ZHOIDUH SURJUDPV DQG IRU HIIHFWLYH WDUJHWLQJ RI WKURXJKELRPHWULFGHGXSOLFDWLRQ
ZHOIDUHVHUYLFHV7KHSRWHQWLDORI$DGKDDUFDQEH
UHDOL]HGWKURXJKLWVXVHRIWKHLQIUDVWUXFWXUHDVDQ,' $DGKDDUDV)LQDQFLDO$GGUHVV
SURRI DQG DV D XQLTXH NH\ E\ YDULRXV 6WDWH $V$DGKDDULVXQLTXHDQGGRHVQRWFKDQJHRYHUWKH
'HSDUWPHQWV&HQWUDO0LQLVWULHV368VDQGSULYDWH OLIHF\FOH RI DQ LQGLYLGXDO WKH GLJLW $DGKDDU LV
VHFWRU HQWLWLHV WR SURYLGH VHUYLFH GHOLYHU\ WR VXIÀFLHQWWRWUDQVIHUDQ\SD\PHQWVWRDQLQGLYLGXDO
UHVLGHQWVLQDQLQWHJUDWHGIDVKLRQ 7RGD\LQRUGHUWRWUDQVIHUPRQH\WRDEHQHÀFLDU\
7KHUH DUH PDQ\ EHQHÀWV DVVRFLDWHG ZLWK VXFK WKH *RYHUQPHQWV ,QVWLWXWLRQV QHHG WR NQRZ WKH
LQWHJUDWLRQIRUWKHYDULRXVVWDNHKROGHUVWKDWUDQJH EDQNDFFRXQW,)6&&RGHDQGEDQNEUDQFKGHWDLOV
IURPEHWWHUFRPSOLDQFHPDQDJHPHQWWRVLJQLÀFDQW HWFZKLFKLVSURQHWRFKDQJH+RZHYHU$DGKDDU
VDYLQJVLQOHDNDJHVDQGLQFUHDVHGHIÀFLHQF\DQG RIIHUVWKHSRVVLELOLW\RIVHQGLQJPRQH\E\MXVWXVLQJ
DFFRXQWDELOLW\LQVHUYLFHGHOLYHU\ WKHGLJLWQXPEHUIRUOLIHZLWKRXWERWKHULQJDERXW
DQ\FKDQJHVLQWKHEDQNDFFRXQWRIWKHLQGLYLGXDOV
,Q RUGHU WR FDUU\ IRUZDUG WKH PDQGDWH JLYHQ WR 7KXVZLWKWKLVXQLTXHSURSHUW\RIEHLQJYDOLGIRUD
8,'$,EHVLGHVLWV+HDG4XDUWHUVLQ1HZ'HOKLDQG OLIHWLPH $DGKDDU LV YHU\ ZHOO SHUFHLYHG DV D
WHFKQRORJ\&HQWUHDW%HQJDOXUX8,'$,KDGVHWXS )LQDQFLDO$GGUHVVLQWKHEDQNLQJVHFWRU
HLJKW  UHJLRQDORIÀFHVDWWKHIROORZLQJORFDWLRQVDW
%HQJDOXUX &KDQGLJDUK 'HOKL *XZDKDWL $XWKHQWLFDWLRQ
+\GHUDEDG/XFNQRZ0XPEDLDQG5DQFKL 2QHRIWKHRWKHUFKDOOHQJHVWKHUHVLGHQWIUHTXHQWO\
3UHVHQWO\RQHSDUWWLPH&KDLUPDQDQGWZRSDUWWLPH IDFHGZDVWRHVWDEOLVKKLVKHULGHQWLW\7KHSUREOHP
PHPEHUV KDYH EHHQ DSSRLQWHG LQ 8,'$, 7KH JHWVIXUWKHUFRPSOLFDWHGRZLQJWRWKHIDFWRIXVLQJ
DXWKRULW\ LV KHDGHG E\ &KLHI ([HFXWLYH 2IÀFHU SUR[\ GRFXPHQWV DQG FLUFXODWLRQ RI FRXQWHUIHLW
&(2 ZKRLVDQ$GGLWLRQDO6HFUHWDU\OHYHORIÀFHUWR GRFXPHQWV LQ WKH FRXQWU\ ZKLFK OHDGV WR ODFN RI
WKH*RYHUQPHQWRI,QGLD 7KH8,'$,+HDGTXDUWHU WUXVW EHWZHHQ VHUYLFH SURYLGHUV DQG WKH UHVLGHQW
+RZHYHU $DGKDDU·V SURSHUW\ RI $XWKHQWLFDWLRQ


0LQLVWU\RI(OHFWURQLFV ,QIRUPDWLRQ7HFKQRORJ\ 0HLW<

HQDEOHVDQ$DGKDDUKROGHUWRDXWKHQWLFDWHZLWKD HQUROPHQWWKHUHDUHRWKHURSWLRQDOÀHOGVVXFKDVH
VHUYLFHSURYLGHU$Q\WLPH$Q\ZKHUHLQWKHFRXQWU\ 0DLODQG0RELOH1XPEHU,QFDVHRIFKLOGUHQEHORZ
WRSURYHKLVKHULGHQWLW\7RIDFLOLWDWHWKLV8,'$,KDV \HDUV DJH ELRPHWULF LQIRUPDWLRQ LV QRW FROOHFWHG
HVWDEOLVKHG DQ HFRV\VWHP EDVHG RQ EHVW JOREDO DQGWKHLU$DGKDDULVOLQNHGWRSDUHQW·VJXDUGLDQ·V
SUDFWLFHV WR HQVXUH GDWD SULYDF\ DQG UHOLDELOLW\ RI $DGKDDU
DXWKHQWLFDWLRQZLWK8,'$,EHLQJDJQRVWLFWRWKHIDFW (QUROPHQW6WDWLVWLFV
DVWRZK\ZDVWKHDXWKHQWLFDWLRQGRQH
(QUROPHQW6WDWXVDVRIVW'HF DJHDV
 $SSURDFK DQG 6WUDWHJ\ (QUROPHQW SHUSURMHFWHGSRSXODWLRQ
(FRV\VWHP
 7RWDO(QUROPHQWV²FURUH
(QUROPHQW,PSOHPHQWDWLRQ0RGHO
 7RWDO $DGKDDU JHQHUDWLRQ ²  FURUH
$DGKDDUHQUROPHQWHFRV\VWHPLVEXLOWLQSDUWQHUVKLS 
ZLWK PXOWLSOH 5HJLVWUDUV ZKHUHLQ 5HJLVWUDUV DUH
SULPDULO\6WDWH*RYHUQPHQWV3XEOLF6HFWRU%DQNV   $DGKDDU JHQHUDWLRQ ²  FURUH
5HJLVWUDU *HQHUDO RI ,QGLD 5*,  HWF $OO WKH 
5HJLVWUDUV LQ WKH HFRV\VWHP DUH VLJQDWRULHV WR 7KH FXUUHQW DYHUDJH RI $DGKDDU JHQHUDWLRQ LV
0R8VZLWK8,'$, DSSUR[LPDWHODNKVSHUGD\
$V RQ GDWH 8,'$, KDV SDUWQHUHG ZLWK  8SGDWLRQ
5HJLVWUDUV ZKHUHLQ  5HJLVWUDUV DUH IURP ,QRUGHUWRPDLQWDLQWKHGDWDRIWKHUHVLGHQWVFXUUHQW
6WDWH87V  DUH 368V36%V DQG  DUH &HQWUDO DQGXSWRGDWH8,'$,KDVSURYLGHGDQLQVWLWXWLRQDO
0LQLVWULHV'HSDUWPHQWV PHFKDQLVP WR HQDEOH UHVLGHQWV WR XSGDWH WKHLU
(QUROPHQW3KLORVRSK\ GDWD 7KH XSGDWHV LQFOXGH FRUUHFWLRQV DQGRU
2QH RI WKH NH\ FRQVLGHUDWLRQV LV WR NHHS WKH FKDQJHV LQ WKH GHPRJUDSKLF GHWDLOV RI UHVLGHQWV
$DGKDDU V\VWHP SXUHO\ IRFXVHG RQ LGHQWLW\ 7KH GXH WR FKDQJH RI DGGUHVV PRELOH QXPEHU RU
$DGKDDU V\VWHP RQO\ FROOHFWV PLQLPDO GDWD WR FKDQJHRIQDPHDIWHUPDUULDJHHWFDQGELRPHWULF
SURYLGH XQLTXH LGHQWLW\ LVVXH WKH $DGKDDU DIWHU DWWULEXWHVWKDWQHHGWREHXSGDWHGE\WKHFKLOGUHQ
ELRPHWULF GHGXSOLFDWLRQ PDQDJH OLIHF\FOH XSRQDWWDLQLQJWKHDJHRIDQG\HDUVHWF
FKDQJHVRIWKDWLGHQWLW\UHFRUG 8,'$,KDVLQVWLWXWLRQDOL]HGWKHSURFHVVRI8SGDWLRQ
$V UHFRPPHQGHG E\ WKH 'HPRJUDSKLF 'DWD WKURXJK SRVW PDQXDO XSGDWLRQ WKURXJK LWV
6WDQGDUGV DQG 9HULÀFDWLRQ &RPPLWWHH 5HSRUW 3HUPDQHQW (QUROPHQW &HQWUHV DQG HOHFWURQLF
''693 DQG%LRPHWULF6WDQGDUGV&RPPLWWHHWKH RQOLQH 8SGDWLRQ WKURXJK LWV 6HOI 6HUYLFH 8SGDWH
8,'$, LV FROOHFWLQJ EDUH PLQLPXP GHPRJUDSKLF 3RUWDO 6683 
LQIRUPDWLRQIURPWKHUHVLGHQWVVXFKDV1DPH$JH $VRQVW'HFRYHUWKRXVDQG3HUPDQHQW
*HQGHU $GGUHVV %LRPHWULF SKRWRJUDSK WHQ (QUROPHQW &HQWUHV 3(&V  H[LVWHG DFURVV WKH
ÀQJHUSULQWVDQGWZRLULV DQG5HODWLRQVKLSGHWDLOVLQ FRXQWU\ ZKLFK LQ DGGLWLRQ WR $DGKDDU HQUROPHQWV
FDVHRIPLQRUV IDFLOLWDWHG 8SGDWLRQ VHUYLFHV 7RWDO  FURUH
:KLOH WKH DERYH ÀHOGV DUH PDQGDWRU\ IRU HYHU\ 'HPRJUDSKLF XSGDWHV  FURUH %LRPHWULF


 $QQXDO5HSRUW

XSGDWHV DQG  ODNK PRELOH XSGDWHV SURFHVVHG QXPEHUOHWWHU 8,'$, KDV GHYHORSHG D SURFHVV WR
VLQFHLQFHSWLRQ UHFRYHUWKH8,'QXPEHUE\DQ$DGKDDUKROGHU7KLV
(QUROPHQW'ULYHRI&KLOGUHQEHORZ UHTXLUHV DQ ¶,GHQWLW\ &KHFN· ZKLFK LQYROYHV
F D S W X U L Q J  W K H  U H V L G H Q W · V  E L R P H W U L F  D Q G
,Q FRPSOLDQFH WR WKH 8,'$,·V SROLF\ $DGKDDU LV GHPRJUDSKLFV DQG FRPSDULQJ LW DJDLQVW WKH 8,'
LVVXHGWRDOOUHVLGHQWVLQFOXGLQJWKHFKLOGUHQEHORZ GDWDEDVHLQRUGHUWRORFDWHWKH8,'QXPEHURIWKH
\HDUV RI DJH +RZHYHU WKH ELRPHWULFV YL] UHVLGHQW 7KLV VHUYLFH KDV EHHQ LQVWLWXWLRQDOL]HG
ÀQJHUSULQWV DQG LULV LPDJH LV QRW FDSWXUHG IRU WKURXJKLWV3HUPDQHQW(QUROPHQW&HQWHUV
FKLOGUHQEHORZ\HDUVRIDJH,QOLHXRIWKHVDPHD
GHGLFDWHG FOLHQW FDOOHG ´&KLOG (QUROOPHQW /LWH $V D VSHFLDO PHDVXUH $GYDQFH 6HDUFK DQG H
&OLHQWµ KDV EHHQ GHYHORSHG WR FDSWXUH WKH $DGKDDUGRZQORDGIDFLOLWLHVFDQEHXVHGWRÀQGRXW
GHPRJUDSKLFGDWDDQGSKRWRJUDSKRIWKHFKLOGUHQ $DGKDDUGHWDLOVDQGGRZQORDGWKH$DGKDDUE\WKH
EHORZ  \HDUV RI DJH ,Q RUGHU WR IDFLOLWDWH DQG UHVLGHQW7KHUHVLGHQWFDQDOVRXVH)LQG(,'8,'
H[SHGLWH HQUROPHQW RI DSSUR[LPDWHO\  FURUH YHULI\ $DGKDDU IDFLOLWLHV DYDLODEOH RQ WKH 8,'$,
FKLOGUHQLQ)<8,'$,LQWHQGVWROHYHUDJHWKH ZHEVLWHWRUHFRYHUWKH(,'8,'GHWDLOV
$DJDQZDGL ZRUNHU QHWZRUN WKURXJK SDUWQHUVKLS $DGKDDU/HWWHU3ULQWLQJDQG'HOLYHU\
ZLWK 0LQLVWU\ RI :RPHQ DQG &KLOG 'HYHORSPHQW (DFK $DGKDDU OHWWHU FRPSULVHV D SULQWHG
8,'$,LQFRRUGLQDWLRQZLWK5*,KDVUROOHGRXWWDEOHW O D P L Q D W H G   I R X U F R O R X U  G R F X P H Q W  Z L W K  D
EDVHGFKLOGHQUROPHQWFOLHQWIRU$DGKDDUOLQNHGELUWK SKRWRJUDSKGDWHRIELUWKGHPRJUDSKLFLQIRUPDWLRQ
UHJLVWUDWLRQ ZKHUHLQ FKLOGUHQ DUH HQUROOHG DW ELUWK RIWKHSHUVRQWKH$DGKDDUQXPEHUEDUFRGHVDQGD
DQGWKHLUHQUROPHQWLVOLQNHGZLWKELUWKUHJLVWUDWLRQ 4XLFN 5HVSRQVH 45  FRGH )RU WKH SULQWLQJ RI
7KHVWDWHJRYHUQPHQWVKDYHEHHQUHTXHVWHGWRRQ $DGKDDU OHWWHUV 8,'$, KDV RQERDUGHG WKUHH
ERDUG 6WDWH +HDOWK 'HSDUWPHQW RU GHSDUWPHQW SULQWHUVDWYDULRXVORFDWLRQV&XUUHQWO\WKHLQVWDOOHG
KDQGOLQJELUWKUHJLVWUDWLRQDV8,'$,UHJLVWUDUDQGGR SULQWLQJ FDSDFLW\ LV  /DNK OHWWHUV SHU GD\ LQ 
WKH$DGKDDUOLQNHGELUWKUHJLVWUDWLRQ GLIIHUHQWUHJLRQDOODQJXDJHV
(QUROPHQW&KDOOHQJH6FKHPH 7KH'HSDUWPHQWRI3RVWVLVWKHSDUWQHUIRUGHOLYHU\
6SHFLDO HQUROPHQW GULYH E\ WKH QDPH ´HQUROPHQW RIWKH$DGKDDUOHWWHUVWRWKHUHVLGHQWVDWWKHDGGUHVV
FKDOOHQJH VFKHPHµ KDV EHHQ ODXQFKHG LQ WKH\KDYHSURYLGHGDWWKHWLPHRIHQUROPHQW6LQFH
VWDWHV87V KDYLQJ DWWDLQHG  $DGKDDU LQFHSWLRQDQGXQWLOVW'HFHPEHUDWRWDORI
VDWXUDWLRQ LQ UHVSHFW RI DGXOW SRSXODWLRQV  7KH &U$DGKDDUOHWWHUV WKLVLQFOXGHVOHWWHUVVHQW
VFKHPHLVIRUUHVLGXDODGXOWSRSXODWLRQV RIWKHVH E\6SHHG3RVW KDYHEHHQSULQWHGDQGGLVSDWFKHG
VWDWHV87 ZKR KDYH QRW EHHQ DEOH WR DYDLO WRWKH5HVLGHQWVWKURXJK,QGLD3RVWDV)LUVW&ODVV
WKHPVHOYHV RI WKH HQUROPHQW IDFLOLW\ GXH WR VRPH 'LJLWDOO\)UDQNHGDUWLFOHV
UHDVRQV 7KH VFKHPH KDV EHHQ ODXQFKHG LQ WZR H$DGKDDU
SKDVHVGXULQJWKH\HDU
8,'$, KDV ODXQFKHG WKH H$DGKDDU SRUWDO IRU
5HFRYHULQJ/RVW(,'8,'1XPEHU GRZQORDGLQJWKH$DGKDDUOHWWHULQ3')IRUPDWIURP
:KHQ D UHVLGHQW ORVHV KLVKHU (,' VOLS RU 8,' WKHZHEVLWHRI8,'$, ZZZXLGDLJRYLQ 


0LQLVWU\RI(OHFWURQLFV ,QIRUPDWLRQ7HFKQRORJ\ 0HLW<

$VSHU&ODXVH  RI&KDSWHU,, (QUROPHQW RI¶7KH $W SUHVHQW ,QWHUDFWLYH 9RLFH 5HVSRQVH 6\VWHP
$DGKDDU 7DUJHWHG'HOLYHU\RI)LQDQFLDODQG2WKHU ,956  DQG LQERXQG DJHQW SKRQH VXSSRUW LV
6XEVLGLHV %HQHÀWV DQG 6HUYLFHV  $FW · $Q SURYLGHG LQ  ODQJXDJHV +LQGL (QJOLVK
$DGKDDUQXPEHULVVXHGWRDQLQGLYLGXDOVKDOOQRWEH $VVDPHVH %HQJDOL *XMDUDWL .DQQDGD 0DUDWKL
UHDVVLJQHGWRDQ\RWKHULQGLYLGXDO  $Q$DGKDDU 0DOD\DODP2GLD3XQMDEL7DPLODQG7HOXJX (PDLO
QXPEHU VKDOO EH D UDQGRP QXPEHU DQG EHDU QR VXSSRUWLVSURYLGHGLQ(QJOLVKRQO\
UHODWLRQWRWKHDWWULEXWHVRULGHQWLW\RIWKH$DGKDDU &XUUHQW\ 8,'$,·V &RQWDFW &HQWUH GDLO\ UHFHLYHV
QXPEHUKROGHU  $Q$DGKDDUQXPEHULQSK\VLFDO DSSUR[LPDWHO\ODNKFDOOVRQ7ROO)UHH1XPEHU
RU HOHFWURQLF IRUP VXEMHFW WR DXWKHQWLFDWLRQ DQG DQG  HPDLOV RQ GDLO\ EDVLV 2XW RI WKH WRWDO
RWKHU FRQGLWLRQV DV PD\ EH VSHFLÀHG E\ FDOOVUHFHLYHGDWWKH&RQWDFW&HQWHUDSSUR[LPDWHO\
UHJXODWLRQVPD\EHDFFHSWHGDVSURRIRILGHQWLW\RI RIWKHFDOOVDUHEHLQJKDQGOHGDQGUHVROYHGDW
WKH $DGKDDU QXPEHU KROGHU IRU DQ\ SXUSRVH $V WKH,956OHYHODQGUHVWDUHEHLQJWUDQVIHUUHGWR
VXFKWKHH$DGKDDUZKLFKLVGLJLWDOO\VLJQHGLVD WKH$DGKDDU6DPSDUN.HQGUDDJHQW
YDOLG DQG VHFXUH HOHFWURQLF GRFXPHQW WUHDWHG DW
SDUZLWKWKHSULQWHG$DGKDDUOHWWHU,QWKH$DGKDDU $XWKHQWLFDWLRQ(FRV\VWHP
V\VWHP WKH UHVLGHQW·V GHWDLOV FDQ EH YHULÀHG $DGKDDU$XWKHQWLFDWLRQ
WKURXJK DQ HVWDEOLVKHG RQOLQH DXWKHQWLFDWLRQ $DGKDDU $XWKHQWLFDWLRQ PHDQV WKH SURFHVV E\
SURFHVV7KHUHIRUHWKHH$DGKDDULVDFFHSWDEOHDV ZKLFKWKH$DGKDDUQXPEHUDORQJZLWKGHPRJUDSKLF
DYDOLG3URRIRI,GHQWLW\7KHUHOHYDQWFLUFXODUVKDYH LQIRUPDWLRQRUELRPHWULFLQIRUPDWLRQRIDQLQGLYLGXDO
EHHQ SRVWHG RQ WKH ZHEVLWH RI 8,'$, DQG PHGLD LV VXEPLWWHG WR WKH &HQWUDO ,GHQWLWLHV 'DWD
FDPSDLJQV KDYH DOVR EHHQ XQGHUWDNHQ IRU ZLGH 5HSRVLWRU\IRULWVYHULÀFDWLRQDQGVXFK5HSRVLWRU\
SXEOLFLW\WRWKHYDOLGLW\RIH$DGKDDU YHULÀHVWKHFRUUHFWQHVVRUWKHODFNWKHUHRIRQWKH
7 K H  W R W D O  H  $ D G K D D U  G R Z Q O R D G V  W L O O    V W EDVLVRILQIRUPDWLRQDYDLODEOHZLWKLW
'HFHPEHUDUHDSSUR[&U $XWKHQWLFDWLRQLPSOHPHQWDWLRQ0RGHO
$DGKDDU6XSSRUW6HUYLFHV²$DGKDDU6DPSDUN 8,'$,SURYLGHV$XWKHQWLFDWLRQDQGH.<&VHUYLFHV
.HQGUD WKURXJK DJHQFLHV FDOOHG DV $XWKHQWLFDWLRQ 8VHU
8,'$,KDVHVWDEOLVKHGDFHQWUDOL]HG&RQWDFW&HQWUH $JHQF\ $8$  $XWKHQWLFDWLRQ 6HUYLFH $JHQF\
DQG KHOSGHVN VHUYLFHV ZKLFK DUH RSHUDWLQJ IURP $6$ DQGH.<&8VHU$JHQF\ .8$ 
3XQH -DPVKHGSXU &KDQGLJDUK .DNLQDGD $XWKHQWLFDWLRQ8VHU$JHQF\ $8$
%DURGD*XZDKDWL$PEDUDDQG0XQQDUWRVHUYHDV
DKHOSOLQHWRWKHUHVLGHQWVDQGRWKHUVWDNHKROGHUV $8$LVDQ\JRYHUQPHQWSXEOLFSULYDWHOHJDODJHQF\
IRU LQWHUDFWLRQ RQ 8,' UHODWHG LVVXHV LQFOXGLQJ UHJLVWHUHG LQ ,QGLD WKDW VHHNV WR XVH $DGKDDU
JULHYDQFHUHGUHVVDO7KHGHWDLOVRIWKHVHUYLFHVDUH $XWKHQWLFDWLRQIRUSURYLGLQJDFFHVVWRLWVVHUYLFHV
$Q $8$ LV WKH SULQFLSDO DJHQF\ WKDW VHQGV
‡ (PDLO´KHOS#XLGDLJRYLQ $XWKHQWLFDWLRQ UHTXHVWV WR HQDEOH LWV VHUYLFHV
‡ &RQWDFW 1XPEHU 7ROO )UHH   0RQGD\ EXVLQHVVIXQFWLRQV $Q$8$FRQQHFWWRWKH8,'$,
6DWXUGD\DPWRSP  6XQGD\ DPWR GDWDFHQWUH&HQWUDO,GHQWLW\'DWD5HSRVLWRU\ &,'5 
SP


 $QQXDO5HSRUW

WKURXJKDQ$6$ HLWKHUE\EHFRPLQJ$6$RQLWVRZQ GDWDEDVHV

RUFRQWUDFWLQJVHUYLFHVRIDQH[LVWLQJ$6$ XVLQJD 2QFH WKH $DGKDDU LV FDSWXUHG LQ WKH 6FKHPH
VHFXUHG SURWRFRO  $V RQ   OLYH  GDWDEDVH LW FDQ EH YHULÀHG DQG OLQNHG XVLQJ
HQWLWLHVKDYHEHHQRQERDUGHGE\8,'$,DV$8$V GLIIHUHQWVHUYLFHVDQGIDFLOLWLHVRIIHUHGE\8,'$,DV
DQGDVRQFURUH$XWKHQWLFDWLRQ IROORZV
WUDQVDFWLRQVKDYHEHHQSHUIRUPHG
‡ %LRPHWULF $XWKHQWLFDWLRQ DQG H.<& 7KHVH
$XWKHQWLFDWLRQ6HUYLFH$JHQF\ $6$ PHWKRGV SURYLGH WKH PRVW DFFXUDWH ZD\ RI
$6$V DUH HQWLWLHV WKDW WUDQVPLW DXWKHQWLFDWLRQ VHHGLQJ EXW UHTXLUH SK\VLFDO SUHVHQFH RI
UHTXHVWV WR WKH &,'5 RQ EHKDOI RI RQH RU PRUH $DGKDDUKROGHUDWWKHWLPHRIVHHGLQJ
$8$V7KH\SOD\WKHUROHRIHQDEOLQJLQWHUPHGLDULHV ‡ 'HPRJUDSKLF $XWKHQWLFDWLRQ 8,'$, RIIHUV D
WKURXJK VHFXUH FRQQHFWLRQ HVWDEOLVKHG ZLWK WKH IDFLOLW\ IRU EXON GHPRJUDSKLF DXWKHQWLFDWLRQ
&,'5$6$VUHFHLYH&,'5·VUHVSRQVHDQGWUDQVPLW 8VLQJ WKLV IDFLOLW\ WKH GHPRJUDSKLF GDWD
WKHVDPHEDFNWRWKH$8$V $VRQ DYDLODEOHLQ6FKHPHGDWDEDVHFDQEHPDWFKHG
$6$V OLYH DUHRQERDUGHGZLWK8,'$, ZLWKWKDWRI8,'$, &,'5 DQGFRQÀUPHG
.<&8VHU$JHQF\ .8$ $DGKDDU VHHGLQJ LQ YDULRXV ODUJH GDWDEDVHV KDV
.<&8VHU$JHQF\ .8$ VKDOOPHDQDUHTXHVWLQJ JURZQVWHDGLO\DQGDVRQVW'HFDWRWDORI
HQWLW\ZKLFKLQDGGLWLRQWREHLQJDQ$8$XVHVH  FURUH $DGKDDUV ZHUH VHHGHG LQ /3*
.<&DXWKHQWLFDWLRQIDFLOLW\SURYLGHGE\WKH$XWKRULW\ GDWDEDVHFURUHVLQ0*15(*6FURUHLQ
$V RQ   .8$ OLYH  HQWLWLHV DUH RQ 3'6 5DWLRQ &DUG  DQG  FURUH LQ EDQN
ERDUGHG RQ $DGKDDU SODWIRUP DQG DV RQ DFFRXQWV
  FURUH H.<& WUDQVDFWLRQV KDYH $ D G K D D U  $ X W K H Q W L F D W L R Q  D Q G  6 H H G L Q J
EHHQSHUIRUPHG :RUNVKRSV
$DGKDDU6HHGLQJ(FRV\VWHP ,Q RUGHU WR KHOS XQGHUVWDQG $DGKDDU 6HUYLFHV
$DGKDDU VHHGLQJ LV D RQHZD\ SURFHVV E\ ZKLFK $SSOLFDWLRQV DQG $DGKDDU 6HHGLQJ 8,'$, KDV
8,'V RI UHVLGHQWV DUH DFFXUDWHO\ LQFOXGHG LQ WKH GHYHORSHGDWUDLQLQJPRGXOHIRUYDULRXV0LQLVWULHV
VHUYLFH GHOLYHU\ GDWDEDVH RI VHUYLFH SURYLGHUV IRU 6WDWH*RYHUQPHQW'HSDUWPHQWV%DQNVDQGRWKHU
HQDEOLQJ $DGKDDU EDVHG DXWKHQWLFDWLRQ GXULQJ RUJDQL]DWLRQV (YHU\ PRQWK 8,'$, KDV EHHQ
VHUYLFH GHOLYHU\ 7KH VHHGLQJ SURFHVV LV FRQGXFWLQJ PXOWLSOH ZRUNVKRSV LQ +4 DQG DW
DFFRPSOLVKHGLQWZRVWHSV,QWKHÀUVWVWHS$DGKDDU YDULRXVORFDWLRQVDOORYHU,QGLD
LVWREHFDSWXUHGLQWRWKHEHQHÀFLDU\GDWDEDVHDQG  7UDLQLQJ 7HVWLQJ DQG &HUWLÀFDWLRQ
LQWKHVHFRQGVWHSDIWHUYHULÀFDWLRQZLWKUHIHUHQFHWR HFRV\VWHP
8,'$,GDWDEDVH &,'5 LWLVOLQNHGWRWKHEHQHÀFLDU\
UHFRUGLQWKHGDWDEDVHRIWKHVHUYLFHSURYLGHU )RUVXFFHVVRIDQ\SURJUDPHVSHFLDOO\RIWKHVFDOH
VXFKDVWKDWRI8,'$,LWLVLPSHUDWLYHWKDWWKHUHLV
8,'$,KDVXQGHUWDNHQPXOWLSOHDFWLYLWLHVWRHQVXUH VXIÀFLHQW HPSKDVLV JLYHQ WR TXDOLW\ RI GDWD
$DGKDDU VHHGLQJ LV IDFLOLWDWHG LQ YDULRXV VFKHPH FROOHFWHGGXULQJHQUROPHQW$GGLWLRQDOO\LWLVHTXDOO\


0LQLVWU\RI(OHFWURQLFV ,QIRUPDWLRQ7HFKQRORJ\ 0HLW<

LPSRUWDQWWKDWWKHSHRSOHZKRDUHUHVSRQVLEOHIRU $DGKDDUSURFHVVHVPDQ\5HIUHVKHUSURJUDPV
FDSWXULQJ GDWD DUH DGHTXDWHO\ WUDLQHG DQG DQG7UDLQLQJRI7UDLQHUSURJUDPZHUHFRQGXFWHG
FHUWLÀHG8,'$, KDV ZRUNHG GLOLJHQWO\ WR FUHDWH D E\ 8,'$, 5HJLRQDO 2IÀFHV )URP  WR
7UDLQLQJ7HVWLQJDQG&HUWLÀFDWLRQHFRV\VWHP7KLV  D WRWDO RI  VXFK SURJUDPV ZHUH
HFRV\VWHP FRQVLVWV RI   &RQWHQW 'HYHORSPHQW RUJDQL]HG ZKLFK ZDV DWWHQGHG E\ 
$JHQF\DQG  7HVWLQJDQG&HUWLÀFDWLRQ$JHQFLHV SDUWLFLSDQWV
8,'$, HQJDJHV &HUWLÀHG 2SHUDWRUV 6XSHUYLVRUV ‡ 35,'/23URJUDP8,'$,DOVRSURYLGHVWUDLQLQJ
DQG &KLOG (QUROPHQW /LWH &OLHQW 2SHUDWRUV LQ WR WKH PHPEHUV RI 3DQFKD\DWL 5DM ,QVWLWXWLRQV
$DGKDDU HQUROPHQW SURFHVV 9DULRXV WUDLQLQJ DQG 'LVWULFW OHYHO RIÀFHUV WR PDNH WKHP
PHWKRGRORJLHV LQFOXGLQJ 0HJD 7UDLQLQJ DQG XQGHUVWDQGWKHLUUROHLQ$DGKDDUHQUROPHQW7LOO
&HUWLÀFDWLRQ&DPSV5HIUHVKHURULHQWDWLRQ7UDLQLQJ 'HFHPEHUVXFKZRUNVKRSVKDYHEHHQ
DQG '/235, 7UDLQLQJ 3URJUDP ZHUH DGRSWHG E\ FRQGXFWHGLQZKLFKFDQGLGDWHVSDUWLFLSDWHG
8,'$,WRHQVXUHWKDWDOOWKHVWDNHKROGHUVLQYROYHGLQ $V RI  8,'$, LQ SDUWQHUVKLS ZLWK WKH
HQUROPHQW DQG RWKHU SURFHVVHV DUH WUDLQHG 7HVWLQJDQG&HUWLÀFDWLRQDJHQFLHVKDVFHUWLÀHGRYHU
HIIHFWLYHO\   7KLV KDV OHG WR ZHOORUJDQL]HG ODNK(QUROPHQW2SHUDWRUV6XSHUYLVRUVDQG&(/&
HQUROPHQW DQG  HQUROPHQW LQ PRVW RI WKH 2SHUDWRUV
6WDWHV  $OVR WR LQFUHDVH WKH XVDJH RI $DGKDDU
DFURVV YDULRXV *RYW RUJDQL]DWLRQV LQ GHOLYHU\ RI  ,QWUDQHW  .QRZOHGJH 0DQDJHPHQW
VHUYLFH 0DVWHU 7UDLQLQJ RQ $DGKDDU 6HHGLQJ 3RUWDO
$XWKHQWLFDWLRQDQGH.<&ZHUHRUJDQL]HGIRU*RYW 7R SURPRWH FRPPXQLFDWLRQ GHHSHU LQIRUPDWLRQ
RIÀFLDOV H[FKDQJH DQG LQFUHDVHG FROODERUDWLRQ DPRQJVW
‡ 6HHGLQJ $XWKHQWLFDWLRQ DQG H.<& 7KH 8,'$, VWDII LW ZDV GHFLGHG WR HVWDEOLVK DQ RQOLQH
WUDLQLQJFRQWHQWFRYHUVDOOWKHPDMRUSURFHVVHV FRPPXQLW\EDVHGSODWIRUP7KH8,'$,WRRNXSWKLV
LQYROYHGLQ$DGKDDU6HHGLQJ$XWKHQWLFDWLRQ  WDVN RI HVWDEOLVKLQJ DQ ¶,QWUDQHW  .QRZOHGJH
H.<&6RIDU8,'$,KDYHFRQGXFWHGWUDLQLQJ 0DQDJHPHQW3RUWDO·7KHDLPRIWKLVH[HUFLVHLVWR
SURJUDPV LQ ZKLFK  *RYW RIÀFLDOV ZHUH JRIRUDSDSHUOHVVRIÀFH3KDVH, 3KDVH,,RIWKH
WUDLQHG SURMHFW KDV EHHQ FRPSOHWHG DQG DOUHDG\ LQ XVH
)ROORZLQJ DUH WKH IXQFWLRQDOLWLHV GHYHORSHG XQGHU
‡ 0HJD 7UDLQLQJ  &HUWLÀFDWLRQ &DPSV 8,'$, 3KDVH, 3KDVH,,
XQGHUWDNHVDQH[HUFLVHWKURXJK0HJD7UDLQLQJ
&HUWLÀFDWLRQFDPSVWRFUHDWHDODUJHSRRORI .03RUWDO
FHUWLÀHG RSHUDWRUVVXSHUYLVRUV WR HQVXUH QR ‡ $'LQWHJUDWLRQ LQFOXGLQJ5HJLRQDO2IÀFH7'8
GLVUXSWLRQRIPRPHQWXPLQHQUROPHQWV$WRWDO ‡ (QKDQFHGYHUVLRQRI.03RUWDO
RI  0HJD FDPSV ZHUH RUJDQL]HG E\ WKH
YDULRXV5HJLRQDO2IÀFHVRI8,'$,LQZKLFK ‡ &RQWDFW0DQDJHPHQW
FDQGLGDWHVZHUHWUDLQHG ‡ (QWHUSULVH6HDUFK
‡ 5HIUHVKHU3URJUDP7RPDNHFHUWLÀHGHQUROPHQW ‡ ,QWHJUDWLRQZLWK'06+506$VVHWV
VWDII XQGHUVWDQG WKH FKDQJHV LQYROYHG LQ


 $QQXDO5HSRUW

‡ 8QLWZRUNVSDFH LPSOHPHQWHG DIWHU UHTXLUHPHQW JDWKHULQJ WR

‡ &RPPXQLWLHVRI3UDFWLFHV EHLQLWLDWHGLQWKHFRPLQJTXDUWHU 

‡ 0HGLDDQG&RPPXQLFDWLRQ ‡ 606LQWHJUDWLRQ

‡ 7UDLQLQJDQG7HVWLQJ ‡ (PDLO LQWHJUDWLRQ ZLWK DOO WKH UHPDLQLQJ

PRGXOHV
‡ 5LFK6LWH6XPPDU\ 566 IHHGV
‡ 3 D \ P H Q W  * D W H Z D \  L Q W H J U D W L R Q  I R U  H 
‡ 6WDWVDQG$XGLWWUDLO SURFXUHPHQWVROXWLRQ
‡ 7UDQVSDUHQF\3RUWDO ‡ .0LQWHJUDWLRQIRU&50
,QWUDQHW ‡ 06(30LQWHJUDWLRQZLWKWKH.03RUWDO
‡ 2IÀFH0DQDJHPHQW6\VWHP )LOH0DQDJHPHQW 2SHUDWLRQV PDLQWHQDQFH  VXSSRUW RI .0
6\VWHP 3RUWDO
‡ $VVHW0DQDJHPHQW6\VWHP ‡ 3ODQQLQJ DQG PDQDJLQJ GHSOR\PHQW RI
‡ +XPDQ5HVRXUFH0DQDJHPHQW +50 0RGXOH DSSOLFDWLRQSDWFKHV
‡ (3URFXUHPHQW ‡ 5HVROYLQJ EXJV LGHQWLI\ GXULQJ DSSOLFDWLRQ
)HDWXUHVRI3KDVH,,LQFOXGLQJDGGLWLRQDOZRUN PDLQWHQDQFH
DV DOORFDWHG IURP WLPH WR WLPH KDYH DOUHDG\ ‡ 5HVROYLQJDSSOLFDWLRQLVVXHVUDLVHGE\XVHUZR
EHHQLPSOHPHQWHG GHYLDWLQJIXQFWLRQDOLW\
‡ $QDO\WLFV,QWHJUDWLRQRQWKH8,'$,ZHEVLWH ‡ 7HFKQLFDO VXSSRUW WR XVHUV RQ SDUDPHWHU
‡ 'HYHORSPHQWRIVHSDUDWHSDJHVLQ.03RUWDOIRU FRQÀJXUDWLRQVHWWLQJEDFNRIÀFHFRQÀJXUDWLRQ
YDULRXV+4'LYLVLRQVDQG52V ‡ 7HFKQLFDOVXSSRUWWRXVHUFRQWHQWPDQDJHUIRU
‡ (QWHUSULVHVHDUFK,PSOHPHQWDWLRQ SHUIRUPLQJ GRFXPHQW VWRUDJH UHWULHYDO DQG
DUFKLYDORSHUDWLRQVRI&'5
‡ 8,'$, ZHEVLWH UHGHVLJQHG DQG GHSOR\HG LQ
(QJOLVK +LQGL ‡ &RQWHQWXSORDGQHZXVHUFUHDWLRQ

‡ 6WDQGDUGL]HG )LOH &DELQHW 'RFXPHQW 8SORDG 8,'$,:HEVLWH

SURFHVV 8,'$, SURYLGHV XS WR GDWH LQIRUPDWLRQ DERXW
‡ 8SGDWHG OLVWVJURXSV IRU RIÀFH RUGHU HPDLO $DGKDDULQLWVZHEVLWHZZZXLGDLJRYLQ7KLVZHE
QRWLÀFDWLRQV VLWH KDV LQIRUPDWLRQ WKDW LV QHHGHG IRU DOO WKH NH\
VWDNHKROGHUV LQFOXGLQJ WKH 5HVLGHQW DQG YDULRXV
‡ 'HSOR\HG+56QDSVKRWVHFWLRQRQ.03RUWDO (FRV\VWHP3DUWQHUV%HVLGHV(QJOLVK +LQGLWKH
‡ '6&LQWHJUDWLRQZLWK)06 ZHEVLWHLVDYDLODEOHLQRWKHUUHJLRQDOODQJXDJHV
‡ . 0  3R U W D O  7U D L Q L Q J  F R Q G X F W H G  D W  5 2 LQ RUGHU WR UHDFK RXW EHWWHU 2QH RI WKH NH\
&KDQGLJDUK+\GHUDEDGDQG0XPEDL WDNHDZD\V RI WKH ZHE VLWH EHVLGHV SURYLGLQJ
JHQHUDOLQIRUPDWLRQRI$DGKDDUDQGWKHSURFHVVRI
2QJRLQJSHQGLQJ IHDWXUHV RI 3KDVH ,,, WR EH SDUWQHULQJZLWK$DGKDDULVWKHDUUD\RIVHUYLFHVLW


0LQLVWU\RI(OHFWURQLFV ,QIRUPDWLRQ7HFKQRORJ\ 0HLW<

SURYLGHVIRUWKHFRQYHQLHQFHRIWKH5HVLGHQWWKDW $1' 6(59,&(6  $&7  SDVVHG E\ WKH

UDQJHIURPNQRZLQJWKHQHDUHVWHQUROPHQWFHQWHU *RYHUQPHQW RI ,QGLD DQG VXEVHTXHQW UHJXODWLRQV
ZKHUH RQH FDQ ERRN DQ DSSRLQWPHQW RQOLQH  WR KDYLQJ VWULQJHQW SHQDOWLHVSXQLVKPHQWV IRU
NQRZLQJ WKH VWDWXV RI $DGKDDU DQG DOVR WR RIIHQGHUV,QWKHLELG$FW&KDSWHU9,RQ3URWHFWLRQRI
GRZQORDG WKH H$DGKDDU 7KLV \HDU WKH 8,'$, ,QIRUPDWLRQ 6HFWLRQ²6HFWLRQ  &KDSWHU9,,
ZHEVLWHKDVEHHQUHYDPSHGZLWKDPRUHUHVLGHQW RQ2IIHQFHVDQG3HQDOWLHV 6HFWLRQ²6HFWLRQ 
IRFXVHGLQIRUPDWLYHDQGXVHUIULHQGO\GHVLJQ7KH RI WKH %LOO VSHFLÀFDOO\ UHODWHV WR SURWHFWLRQ RI
UHYDPSHG ZHEVLWH LV OLYH LQ (QJOLVK DQG +LQGL LQIRUPDWLRQ DQGUHODWHGRIIHQFHVDQGSHQDOWLHVWR
5HYDPSLQJ LQ DOO UHPDLQLQJ ODQJXDJHV LV XQGHU RIIHQGHUV
SURFHVV 8,'$,FHUWLÀHGDV,62
%HVLGHVZZZXLGDLJRYLQ8,'$,DOVRPDLQWDLQVWKH 8,'$, KDV HVWDEOLVKHG WKH ,QIRUPDWLRQ 6HFXULW\
IROORZLQJZHEVLWHVWKDWSURYLGHRQOLQHVHUYLFHV 0DQDJHPHQW 6\VWHP DQG REWDLQHG WKH ,62
‡ KWWSVGHYHORSHUXLGDLJRYLQ  ZKLFK SURYLGHV FHUWLÀFDWLRQIURP674&
DQ RQOLQH SODWIRUP IRU DOO SDUWQHUV GHYHORSHU 'HFODUDWLRQRI&,'5,QIUDVWUXFWXUHDV1&,,3&
FRPPXQLW\ ZKR DUH LQWHUHVWHG LQ EXLOGLQJ
$DGKDDUHQDEOHGDSSOLFDWLRQVDQG 6HFXULW\RI8,'$,&,'5LQIRUPDWLRQLVRISDUDPRXQW
LPSRUWDQFH IRU VDIHJXDUGLQJ UHVLGHQW GDWD
‡ KWWSVUHVLGHQWXLGDLQHWLQ ² ZKLFK SURYLGHV &RQÀGHQWLDOLW\ ,QWHJULW\ DQG $YDLODELOLW\ RI WKH
LQIRUPDWLRQ RQ YDULRXV VHUYLFHV WKDW WKH LQIRUPDWLRQ LV PDLQWDLQHG DW DOO WLPHV WKURXJK
5HVLGHQW ZRXOG OLNH WR NQRZ RQ $DGKDDU FRQWUROVWKDWDUHFRPPHQVXUDWHWRWKHFULWLFDOLW\RI
HQUROPHQWDQGJHQHUDWLRQDQGDOVRWRJHWWKH WKH LQIRUPDWLRQ DVVHWV VR DV WR SURWHFW WKH
JULHYDQFHVDGGUHVVHG ,QIRUPDWLRQ6\VWHPVIURPDOOW\SHVRIWKUHDWV &\EHU
'DWDVHFXULW\DQGSULYDF\ UHODWHG 9LUWXDO /RJLFDO &URVVERUGHU RI &,'5
8,'$, KDV D ZHOOGHVLJQHG PXOWLOD\HU DSSURDFK ,QWHUIDFH1DWLRQDORU,QWHUQDWLRQDOLQWHUHVWVLQWHUQDO
UREXVW VHFXULW\ V\VWHP LQ SODFH DQG WKH VDPH LV RU H[WHUQDO GHOLEHUDWH RU DFFLGHQWDO  8,'$,&,'5
EHLQJFRQVWDQWO\XSJUDGHGWRPDLQWDLQKLJKHVWOHYHO KDV DOVR EHHQ GHFODUHG DV ´&ULWLFDO ,QIRUPDWLRQ
RIGDWDVHFXULW\DQGLQWHJULW\ 7KHDUFKLWHFWXUHRI ,QIUDVWUXFWXUHµ E\ 1DWLRQDO &ULWLFDO ,QIRUPDWLRQ
$DGKDDUHFRV\VWHPKDVEHHQGHVLJQHGWRHQVXUH ,QIUDVWUXFWXUH 3URWHFWLRQ &HQWUH 1&,,3&  DGGLQJ
GDWDVHFXULW\ SULYDF\ZKLFKLVDQLQWHJUDOSDUWRI DQRWKHUOD\HURI,7VHFXULW\DVVXUDQFH
WKHV\VWHPIURPWKHLQLWLDOGHVLJQWRWKHÀQDOVWDJH *RYHUQDQFH5LVN&RPSOLDQFHDQG3HUIRUPDQFH
)RUIXUWKHUVWUHQJWKHQLQJRIVHFXULW\DQGSULYDF\RI 6HUYLFH3URYLGHU *5&363 2QERDUGHG
GDWD VHFXULW\ DXGLWV DUH FRQGXFWHG RQ UHJXODU 7KH YLVLRQ RI *5&3 IUDPHZRUN LV WR IDFLOLWDWH
EDVLVDQGDOOSRVVLEOHVWHSVDUHWDNHQWRPDNHWKH FUHDWLRQ RI D UREXVW FRPSUHKHQVLYH VHFXUH
GDWDVDIHUDQGSURWHFWHG/HJDOVWDWXVWR8,'$,KDV HQYLURQPHQW IRU 8,'$, WR RSHUDWH 7R DFKLHYH WKH
IXUWKHU VWUHQJWKHQHG WKH VHFXULW\ DVVXUDQFH RI JRDOV WKH *5&363 VKDOO SURYLGH 8,'$,
$DGKDDU HFRV\VWHP PDQLIROGV ZLWK WKH UHFHQWO\ PDQDJHPHQW ZLWK RYHUVLJKW RI 8,'$, DQG SDUWQHU
QRWLÀHG7+($$'+$$5 7$5*(7(''(/,9(5<2) HFRV\VWHPLQWHUPVRI9LVLELOLW\(IIHFWLYHQHVVDQG
),1$1&,$/ $1' 27+(5 68%6,',(6 %(1(),76


 $QQXDO5HSRUW

&RQWURO WUDQVDFWLRQV LQ UHDO WLPH LQ DQ LQWHURSHUDEOH

)UDXG0DQDJHPHQW6\VWHPDW8,'$, HQYLURQPHQW

7KH IUDXG PDQDJHPHQW V\VWHP KDV EHHQ 7LOO VW 'HFHPEHU   %DQNV DQG
FRQVROLGDWHG IXUWKHU RYHU WKH FRXUVH RI ODVW RQH 'HSDUWPHQW RI 3RVW DUH DFWLYH RQ $H36 SODWIRUP
\HDU 8,'$, KDV D ZHOOGHVLJQHG PXOWLOD\HU DQG %DQNV DORQH SHUIRUPHG  FURUH
DSSURDFKDQGUREXVWIUDXGPDQDJHPHQWV\VWHPLQ WUDQVDFWLRQV
SODFH:LWKWKHHVWDEOLVKPHQWRI)RUHQVLFODEWKH 0LFUR$70,QFHQWLYH6FKHPH
IUDXGLQYHVWLJDWLRQFDSDFLW\RI8,'$,KDVLQFUHDVHG 7KHVFKHPHZDVLQLWLDOO\ODXQFKHGRQVW2FWREHU
PDQLIROGV ZLWKREMHFWLYHRISURPRWLRQRIGHSOR\PHQWRI
$DGKDDU$7RROIRU*RYHUQDQFH5HIRUP 0LFUR$70V WR UROO RXW $DGKDDU EDVHG SD\PHQWV
$DGKDDU3D\PHQW%ULGJH $3% 8,'$, LV ZLOOLQJ WR VXEVLGL]H XSWR C SHU
PLFUR$70 7KH VFKHPH LV DSSOLFDEOH IRU DOO
$3%LPSOHPHQWDWLRQKHOSVGHDOZLWKWKHFKDOOHQJHV VFKHGXOHGEDQNV3RVW2IÀFH6DYLQJVEDQNVDQG
UHODWHGWREDQNLQJWUDQVDFWLRQVZLWKEHQHÀWVWRERWK DSSOLFDEOHWRRWKHUEDQNVEDVHGRQQHHG7KHEDQN
WKHVWDNHKROGHUVQDPHO\WKH*RYHUQPHQWDQGWKH FDQ FODLP WKH IXQGV E\ FDUU\LQJ RXW 
5HVLGHQWV VXFFHVVIXO$DGKDDUEDVHGWUDQVDFWLRQVVXEMHFWWR
$WHFRV\VWHPOHYHO$3%KDVDOUHDG\DFKLHYHGZLGH IXOÀOOLQJ FHUWDLQ FULWHULD 7LOO VW 'HFHPEHU 
DFFHSWDQFHDQGLVSUHVHQWO\DQDSSURYHGSD\PHQW RYHU C FURUHV KDYH EHHQ SDLG WR YDULRXV
V\VWHPE\5%,$VRQVW'HFHPEHU LQVWLWXWLRQV
‡  EDQNV LQFOXGLQJ DOO QDWLRQDOL]HG EDQNV 3XEOLF'LVWULEXWLRQ6\VWHP 3'6
55%VDQGPDQ\FRRSHUDWLYHEDQNVDUHOLYHRQ 7KH3'6QHWZRUNFRQVLVWVRIPRUHWKDQODNK)DLU
WKH$3%SODWIRUP 3ULFH 6KRSV )36  DQG LV HVWLPDWHG WR GLVWULEXWH
‡ 2YHU  FURUH $3% WUDQVDFWLRQV KDYH HVVHQWLDO FRPPRGLWLHV WR PRUH WKDQ  FURUH
VXFFHVVIXOO\ EHHQ FDUULHG RXW RYHU $3% IDPLOLHV6RIDUVWDWHVVXFKDV$QGKUD3UDGHVK 
DPRXQWLQJWR5VFURUH 7HODQJDQD -KDUNKDQG 'HOKL HWF KDYH DOUHDG\ RU
$DGKDDU(QDEOHG3D\PHQW6\VWHP $(36  DUH LQ WKH SURFHVV RI LPSOHPHQWLQJ $DGKDDU
HQDEOHG 3'6 $H3'6  3'6 KDV DOUHDG\
7KH *RYHUQPHQW SD\PHQWV DUH EHLQJ FUHGLWHG XQGHUWDNHQ D PDVVLYH H[HUFLVH WR GHSOR\ $H3'6
GLUHFWO\ LQWR WKH DFFRXQWV RI WKH WDUJHWHG GHYLFHV DFURVV DOO WKH )36 VKRSV LQ WKH FRXQWU\
%HQHÀFLDULHVXVLQJ$3%SODWIRUP+RZHYHUDFFHVV H[FHSWIRU87VZKHUHIRRGJUDLQGLVWULEXWLRQZLOOEH
WR WKHVH IXQGV HQFRXQWHUV D QXPEHU RI ODVW PLOH UHSODFHGE\´&DVKIRU)RRGµVFKHPH
VHUYLFLQJ LVVXHV $DGKDDU HQDEOHG 3D\PHQWV
6\VWHP $H36  IDFLOLWDWHV EDVLF EDQNLQJ DFFHVV -HHYDQ 3UDPDDQ² 'LJLWDO OLIH &HUWLÀFDWH IRU
YL] FDVK ZLWKGUDZDO FDVK GHSRVLW EDODQFH 3HQVLRQHUV VFKHPH NQRZQ DV ´-HHYDQ 3UDPDDQµ
HQTXLU\ IXQG WUDQVIHUV  WR WKH EHQHÀFLDULHV LQ D EDVHG RQ $DGKDDU ELRPHWULF DXWKHQWLFDWLRQ ZDV
KDVVOHIUHHPDQQHUDWQHDUWKHGRRUVWHSV)XUWKHU LQWURGXFHG$VXFFHVVIXODXWKHQWLFDWLRQJHQHUDWHV
XVDJH RI $DGKDDU DXWKHQWLFDWLRQ HQDEOHV 'LJLWDO /LIH &HUWLÀFDWH ZKLFK JHWV VWRUHG LQ /LIH


0LQLVWU\RI(OHFWURQLFV ,QIRUPDWLRQ7HFKQRORJ\ 0HLW<

&HUWLÀFDWH5HSRVLWRU\3HQVLRQ'LVEXUVLQJ$XWKRULW\ 8,'$,KDVFRPPLVVLRQHGWHFKQRORJ\LQIUDVWUXFWXUH
FDQ DFFHVV WKH FHUWLÀFDWH RQOLQH 3UHVHQWO\ WKH WRFDWHUWRDERXWFURUHHQUROPHQWV,QOLQHZLWK
VHUYLFH LV DYDLODEOH IRU &HQWUDO *RYHUQPHQW WKH WDUJHW RI WLPH ERXQG XQLYHUVDO HQUROPHQW DQG
'HIHQVH (3)2 3RVWDO 5DLOZD\ DQG 7HOHFRP IXWXUH QHHGV RI RQOLQH DXWKHQWLFDWLRQ DQG RWKHU
SHQVLRQHUV DV DQ DGGLWLRQDO IDFLOLW\  $V RQ VW VHUYLFHV WKH ,7 LQIUDVWUXFWXUH LV EHLQJ DGHTXDWHO\
'HFHPEHU  PRUH WKDQ  ODNK SHQVLRQHUV DXJPHQWHG DQG XSJUDGHG 8,'$, KDV DSSRLQWHG
KDYHDOUHDG\UHJLVWHUHGIRU-HHYDQ3UDPDDQ +&/ ,QIR 6\VWHPV /LPLWHG DV 0DQDJH 6HUYLFH
,75 )LOLQJ ² 7KH &HQWUDO %RDUG RI 'LUHFW 7D[HV 3URYLGHU 063  IRU LWV &,'5 IRU GHYHORSPHQW DQG
&%'7 KDVLQWURGXFHG$DGKDDUEDVHGHOHFWURQLF PDLQWHQDQFH RI DSSOLFDWLRQV RSHUDWLRQ DQG
YHULÀFDWLRQIRUÀOLQJWKH,QFRPH7D[5HWXUQV ,75 DV PDLQWHQDQFH RI &,'5 ELRPHWULF GHGXSOLFDWLRQ
DQRSWLRQWRVHQG,75GLUHFWO\WRWKHGHSDUWPHQW HWF
7KLV LQLWLDWLYH PDNHV WKH ÀOLQJ RI LQFRPH WD[ %RWK WKH GDWD FHQWHUV ORFDWHG HDFK DW %HQJDOXUX
FRPSOHWHO\(OHFWURQLF 3DSHUOHVV DQGVLPSOLÀHVWKH DQG *UHDWHU 1RLGD KDYH EHHQ PLJUDWHG WR WKH
SURFHVVRI,75)LOLQJ2YHUODNKLQGLYLGXDOVXVHG UHVSHFWLYHFDSWLYH'DWDFHQWHUVRI8,'$,YL]+HEEDO
$DGKDDUEDVHGHOHFWURQLFYHULÀFDWLRQIRUÀOLQJ,75 'DWD&HQWUHDW%HQJDOXUXDQG0DQHVDU'DWD&HQWUH
IRUWKH$< LQ+DU\DQDUHVSHFWLYHO\
H.<&EDVHG6,0,VVXDQFH &RQVWUXFWLRQRI8,'$,+4EXLOGLQJ
'HSDUWPHQW RI 7HOHFRPPXQLFDWLRQV LQ D UHFHQW 7KH FRQVWUXFWLRQ RI 8,'$, +4 EXLOGLQJ LV LQ IXOO
FLUFXODULQ$XJXVWDOORZHGH.<& EDVHGRQ VZLQJ DQG PRUH WKDQ   ZRUNDFWLYLWLHV KDYH
ELRPHWULFDXWKHQWLFDWLRQ WREHXVHGIRULVVXDQFH EHHQFRPSOHWHG
RIQHZ6,0FDUGV7KHQHZSURFHVVZLOOGUDPDWLFDOO\ 8VHRI5DMEKDVKD
UHGXFHWKHWLPHIRUHQWLUHYHULÀFDWLRQSURFHVVDQG
UHPRYH WKH SRVVLELOLW\ RI SURGXFWLRQ RI IDNH 8,'$,LVLPSOHPHQWLQJ2IÀFLDO/DQJXDJH3ROLF\RI
GRFXPHQWVIRUDFTXLULQJQHZ6,0FDUGV *RYWRI,QGLDLQLWV+HDG4XDUWHUDVZHOODVLWVDOO
5HJLRQDO2IÀFHV+LQGL'LYLVLRQDW+HDG4XDUWHULV
$DGKDDUOLQNDJHZLWK8$1 (3)2 ²(PSOR\HH HQVXULQJ FRPSOLDQFH RI 2IÀFLDO /DQJXDJH DV SHU
3URYLGHQW )XQG 2UJDQLVDWLRQ (3)2  LQWHQGV WR 3ROLF\RIWKH8QLRQDVHQVKULQHGLQWKH&RQVWLWXWLRQ
OHYHUDJH $DGKDDU H.<& IRU GHSOR\LQJ D RI ,QGLD HQYLVDJHG LQ WKH 2IÀFLDO /DQJXDJHV $FW
KRPRJHQHRXVPHWKRGRIVXEVFULEHUDXWKHQWLFDWLRQ DQG2IÀFLDO/DQJXDJHV 8VHIRU2IÀFLDO3XUSRVHVRI
6XFK D GHSOR\PHQW ZLOO KHOS LQ KDVWHQLQJ FODLPV WKH8QLRQ 5XOHVDVZHOODVRUGHUVRIWKH*RYWRI
VHWWOHPHQWV DQG GHOLYHU\ RI RWKHU VHUYLFHV ZKLFK ,QGLDLVVXHGIURPWLPHWRWLPHLQWKLVUHJDUG
KDYHVRIDUEHHQGHOD\HGRQDFFRXQWRIHPSOR\HU
GULYHQHPSOR\HHYHULÀFDWLRQSURFHVVHV$VRQGDWH 'XULQJ WKH \HDU  WKUHH PHHWLQJV RI
PRUHWKDQFURUHDFFRXQWVKDYHEHHQOLQNHGZLWK 'HSDUWPHQWDO 2IÀFLDO /DQJXDJH ,PSOHPHQWDWLRQ
$DGKDDUV &RPPLWWHH ZHUH KHOG XQGHU WKH FKDLUPDQVKLS RI
''* (VWW  'XULQJWKHPHHWLQJVSURJUHVVLYHXVH
  &UHDWLRQ RI UHTXLVLWH 7HFKQRORJ\ RI+LQGLDW+HDG4XDUWHUDQG5HJLRQDO2IÀFHVZHUH
,QIUDVWUXFWXUH GLVFXVVHG DQG GHFLVLRQV ZHUH WDNHQ WR LQFUHDVH


 $QQXDO5HSRUW

XVHRI+LQGLLQRIÀFLDOZRUN ZHOO LQ DOO WKH 5HJLRQDO 2IÀFHV /DVW \HDU WZR
'XULQJ WKH \HDU  8,'$, RUJDQL]HG  2IÀFHUVRQHIURP+HDG4XDUWHU'HOKLDQGDQRWKHU
+LQGLZRUNVKRSVIRUVHQVLWL]LQJWKHRIÀFLDOVZLWKWKH IURP0XPEDL5HJLRQDO2IÀFHZHUHDZDUGHG&DVK
2IÀFLDO /DQJXDJH 3ROLF\ $ERXW  RIÀFHUV DQG 3UL]HVXQGHUWKHDERYH6FKHPH
VWDII SDUWLFLSDWHG LQ WKHVH ZRUNVKRSV $V D KHOS 'HWDLOVRI%XGJHW ([SHQGLWXUHGXULQJ
OLWHUDWXUH +LQGL ERRN ´.DU\DOD\D 'HHSLNDµ ZDV 
GLVWULEXWHG DPRQJ WKH SDUWLFLSDQWV LQ RQH RI WKH 'XULQJ  XSWR 'HFHPEHU   DQ
:RUNVKRSV H[SHQGLWXUHRICFURUH SURYLVLRQDO KDVEHHQ
3URJUHVVLYH8VHRI+LQGLLQ+HDG4XDUWHUDQGDOO LQFXUUHGDJDLQVW%XGJHW(VWLPDWHRICFURUH
5HJLRQDO 2IÀFHV RI 8,'$, ZDV GLVFXVVHG DQG 7KH WRWDO H[SHQGLWXUH LQFXUUHG VR IDU LV C
UHYLHZHGDVDÀUVW,WHPLQDOOPRQWKO\,QWHUQDO5HYLHZ FURUH SURYLVLRQDO 
0HHWLQJV KHOG XQGHU WKH &KDLUPDQVKLS RI &(2  ,QGLDQ &RPSXWHU (PHUJHQF\ 5HVSRQVH
8,'$, 7HDP ,&(57
+LQGL 3DNKZDUD ZDV FHOHEUDWHG IURP WK ,&(57 LV D IXQFWLRQDO RUJDQLVDWLRQ RI 0LQLVWU\ RI
6HSWHPEHU  WR WK 6HSW  LQ 8,'$, ( O H F W U R Q L F V  D Q G  , Q I R U P D W L R Q  7H F K Q R O R J \
+HDGTXDUWHU )RXU FRPSHWLWLRQV ZHUH RUJDQL]HG *RYHUQPHQWRI,QGLD,&(57KDVEHHQGHVLJQDWHG
GXULQJ WKLV RFFDVLRQ (LJKW\ (LJKW 2IÀFHUV XQGHU 6HFWLRQ % RI WKH ,QIRUPDWLRQ 7HFKQRORJ\
HPSOR\HHV RI 8,'$, +HDGTXDUWHU DFWLYHO\ $PHQGPHQW  $FW  WR VHUYH DV WKH QDWLRQDO
SDUWLFLSDWHG LQ WKHVH &RPSHWLWLRQV 2Q WK DJHQF\ WR SHUIRUP WKH IROORZLQJ IXQFWLRQV LQ WKH
1RYHPEHU  3UL]H 'LVWULEXWLRQ )XQFWLRQ ZDV DUHDRIF\EHUVHFXULW\
RUJDQL]HG DW 8,'$, +HDGTXDUWHU ZKHUHLQ &(2
8,'$, DZDUGHG  ZLQQHU 2IÀFHUV(PSOR\HHV RI ‡ &ROOHFWLRQ DQDO\VLV DQG GLVVHPLQDWLRQ RI
+HDG4XDUWHUZLWK&DVK3UL]HV LQIRUPDWLRQRQF\EHUVHFXULW\LQFLGHQWV

'XULQJ WKH \HDU 8,'$, +HDGTXDUWHU KDV VWDUWHG ‡ )RUHFDVWDQGDOHUWVRIF\EHUVHFXULW\LQFLGHQWV

´5XQQLQJ 6KLHOG 6FKHPH·· IRU GRLQJ PD[LPXP ‡ (PHUJHQF\ PHDVXUHV IRU KDQGOLQJ F\EHU
RIÀFLDOZRUNLQ+LQGLLQWKH'LYLVLRQV7KH)LUVW6KLHOG VHFXULW\LQFLGHQWV
ZDVDZDUGHGWR(VWDEOLVKPHQW'LYLVLRQE\&(2LQ ‡ &RRUGLQDWLRQ RI F\EHU VHFXULW\ LQFLGHQW
WKH3UL]H'LVWULEXWLRQ)XQFWLRQ UHVSRQVHDFWLYLWLHV
$VSHUWKHGLUHFWLYHVRI'HSWWRI2IÀFLDO/DQJXDJH ‡ ,VVXH JXLGHOLQHV DGYLVRULHV YXOQHUDELOLW\ QRWHV
0LQLVWU\RI+RPH$IIDLUV8,'$,5HJLRQDO2IÀFHVDW DQG ZKLWH SDSHUV UHODWLQJ WR LQIRUPDWLRQ
0XPEDLDQG1HZ'HOKLZHUHLQVSHFWHGGXULQJWKH VHFXULW\ SUDFWLFHV SURFHGXUHV SUHYHQWLRQ
\HDUWRDVVHVVWKHVWDWXVRIFRPSOLDQFHRI UHVSRQVHDQGUHSRUWLQJRIF\EHULQFLGHQWV
2IÀFLDO/DQJXDJH3ROLF\
‡ 6XFKRWKHUIXQFWLRQVUHODWLQJWRF\EHUVHFXULW\
$V SHU WKH GLUHFWLYHV RI 0LQLVWU\ RI +RPH $IIDLUV DVPD\EHSUHVFULEHG
HYHU\\HDU8,'$,FDUULHVRXWDQLQFHQWLYHVFKHPHIRU
1RWLQJDQG'UDIWLQJLQ+LQGLDWLWV+HDG4XDUWHUDV )XUWKHUGHWDLOVDUHSODFHGLQ6HFWLRQ


0LQLVWU\RI(OHFWURQLFV ,QIRUPDWLRQ7HFKQRORJ\ 0HLW<

&\EHU$SSHOODWH7ULEXQDO &$7 7ULEXQDO WR FRPSULVH D &KDLUSHUVRQ DQG VXFK

,QDFFRUGDQFHZLWKWKHSURYLVLRQFRQWDLQHGXQGHU QXPEHU RI RWKHU PHPEHUV DV WKH &HQWUDO
6HFWLRQ    RI WKH ,7 $FW  WKH &\EHU *RYHUQPHQWPD\QRWLI\DSSRLQW7KHQDPHRI&5$7
5HJXODWLRQV $SSHOODWH 7ULEXQDO &5$7  KDV EHHQ KDVDOVREHHQFKDQJHGWR&$7
HVWDEOLVKHGLQ2FWREHU$VSHUWKH,7$FWDQ\ $WSUHVHQWWKH&$7LVIXQFWLRQLQJDW-HHYDQ%KDUWL
SHUVRQ DJJULHYHG E\ DQ RUGHU PDGH E\ WKH /,& %XLOGLQJ1HZ'HOKL7KHIRUPHU&KDLUSHUVRQ
&RQWUROOHU RI &HUWLI\LQJ $XWKRULWLHV RU E\ DQ GHPLWWHG WKH FKDUJH RQ  7ZR SRVWV
$GMXGLFDWLQJ 2IÀFHU XQGHU WKH $FW FDQ SUHIHU DQ 0HPEHU -XGLFLDO  DQG 0HPEHU 7HFKQLFDO  ZHUH
DSSHDOEHIRUHWKH&\EHU$SSHOODWH7ULEXQDO &$7  FUHDWHGDQGERWKWKHSRVWVDUH ÀOOHGLQ0HPEHU
7KLV 7ULEXQDO LV KHDGHG E\ D &KDLUSHUVRQ ZKR LV -XGLFLDO LVIXQFWLRQLQJDV+HDGRIWKH'HSDUWPHQW
DSSRLQWHG E\ WKH &HQWUDO *RYHUQPHQW E\ 'XULQJ WKH \HDU   IUHVK DSSHDOV  KDYH
QRWLÀFDWLRQDVSURYLGHGXQGHU6HFWLRQRIWKH,7 EHHQ ÀOHG E\ WKH SDUWLHV ZKLFK DUH DZDLWLQJ
$FW DGPLVVLRQKHDULQJLQDGGLWLRQWRDSSHDOVIURP
%HIRUHWKHDPHQGPHQWRIWKH,7$FWLQWKH\HDU WKHSUHYLRXV\HDUV7KHVDPHZLOOEHGLVSRVHGRIIRQ
WKH 7ULEXQDO ZDV NQRZQ DV &5$7 DQG WKH MRLQLQJRI&KDLUSHUVRQ&$7ZKRLVWKH&RPSHWHQW
&KDLUSHUVRQ ZDV NQRZQ DV WKH 3UHVLGLQJ 2IÀFHU $XWKRULW\IRUWKHGLVSRVDORIWKHDSSHDOV
3URYLVLRQKDVEHHQPDGHLQWKHDPHQGHG$FWIRUWKH


 &+$37(5

$77$&+('2)),&(6
$1'62&,(7,(6

,Q RUGHU WR RSHUDWLRQDOLVH WKH SURJUDPPHV RI FDUU\LQJRXW5 'LQ,7(OHFWURQLFVDQGDVVRFLDWHG

0LQLVWU\RI(OHFWURQLFVDQG,QIRUPDWLRQ7HFKQRORJ\ DUHDV (VWDEOLVKHG WR FDUU\RXW UHVHDUFK DQG WR
WKH0HLW<KDVWZRDWWDFKHGRUJDQL]DWLRQVDQGVL[ GHYHORS+LJK3HUIRUPDQFH&RPSXWHUVWKH5 'RI
DXWRQRPRXVERGLHVZKLFKWDNHXSSURMHFWVLQWKH &'$&KDVH[SDQGHGWRYDULRXVRWKHUDUHDVVXFK
ÀHOG RI (OHFWURQLFV DQG ,7 LQFOXGLQJ KLJK HQG DV JULG DQG FORXG FRPSXWLQJ PXOWLOLQJXDO
UHVHDUFK DQG GHSOR\PHQW RI ,7 VROXWLRQV LQ ZLGH FRPSXWLQJ KHULWDJH FRPSXWLQJ SURIHVVLRQDO
UDQJHRIDUHDV HOHFWURQLFVLQFOXGLQJ9/6,DQGHPEHGGHGV\VWHPV
F\EHU VHFXULW\ DQG F\EHU IRUHQVLFV KHDOWK
 +LJKHQG 6RIWZDUH 6\VWHPV  &HQWUH IRU
LQIRUPDWLFV VRIWZDUH WHFKQRORJLHV DQG HGXFDWLRQ
'HYHORSPHQW RI $GYDQFHG &RPSXWLQJ &
UHODWHGWRWKHVHWHFKQRORJLHV
'$& 
'XULQJWKH\HDU&'$&PDGHVLJQLÀFDQW
&HQWUH IRU 'HYHORSPHQW RI $GYDQFHG &RPSXWLQJ
DGYDQFHPHQWVLQGHYHORSLQJDQGGHSOR\LQJYDULRXV
&'$& LVDSUHPLHU5 'RUJDQL]DWLRQRI0HLW<IRU


 $QQXDO5HSRUW

VROXWLRQVRUJDQL]LQJHYHQWVSURYLGLQJWUDLQLQJDQG RQ %XLOG DSSURDFK WR LPSOHPHQW +3& V\VWHPV

FROODERUDWLQJ ZLWK RUJDQL]DWLRQV RI UHSXWH ERWK DW XQGHUWKLVPLVVLRQ$SSOLFDWLRQDUHDVLGHQWLÀHGIRU
QDWLRQDODQGLQWHUQDWLRQDOOHYHO.H\DFKLHYHPHQWV GHYHORSPHQW LQFOXGH %LRLQIRUPDWLFV LQWHJUDWHG
RI&'$&DUHRXWOLQHGEHORZ ZHDWKHUVHLVPLFLPDJLQJDQG%LRGLYHUVLW\
  +LJK 3HUIRUPDQFH &RPSXWLQJ +3&  ' H S O R \ P H Q W V  R I  3 $ 5 $ 0  6 K D Y D N   D
*ULG &RPSXWLQJ DQG &ORXG &RPSXWLQJ ´6XSHUFRPSXWHULQD%R[µ VROXWLRQ 3$5$0
3URJUHVVLQ1DWLRQDO6XSHUFRPSXWLQJ0LVVLRQ 6KDYDND´6XSHUFRPSXWHULQD%R[µVROXWLRQLVD
160  WDEOHWRSPRGHORIVXSHUFRPSXWHUGHYHORSHGE\&
'$& HTXLSSHG ZLWK  WR  7HUD)ORS FRPSXWLQJ
1DWLRQDO6XSHUFRPSXWLQJ0LVVLRQ 160 LV MRLQWO\
SRZHUDQG7%RIVWRUDJH,WFRPHVEXQGOHGZLWK
LPSOHPHQWHG E\ 0HLW< DQG WKH 'HSDUWPHQW RI
&'$&·V LQGLJHQRXVO\ GHYHORSHG &+5H0( DQG
6FLHQFH DQG 7HFKQRORJ\  ZLWK &'$& DQG WKH
21$0$VRIWZDUHSDFNDJHVDVZHOODVVHYHUDORSHQ
,QGLDQ ,QVWLWXWH RI 6FLHQFH %DQJDORUH EHLQJ WKH
VRXUFHWRROVDQGDSSOLFDWLRQV,WLVSUHORDGHGZLWK
H[HFXWLQJ DJHQFLHV ,W LV SODQQHG WR HVWDEOLVK
$FFHOHUDWRU *3*380,&  HQDEOHG SDUDOOHO
VHYHUDO VXSHUFRPSXWLQJ V\VWHPV LQ YDULRXV
DSSOLFDWLRQVDQGGHYHORSPHQWWRROVDQGSURYLGHV
DFDGHPLF DQG 5 ' LQVWLWXWLRQV LQ ,QGLD 7KHVH
VXSSRUW IRU &'$&·V 5HFRQÀJXUDEOH &RPSXWLQJ
V\VWHPV ZLOO EH GHSOR\HG XVLQJ ERWK %XLOG
6\VWHP WHFKQRORJ\ WR VSHHG XS DSSOLFDWLRQV
DSSURDFKDQG%X\DSSURDFK&'$&LV IRFXVLQJ
WKURXJK KDUGZDUH 3$5$0 6KDYDN HQDEOHV


0LQLVWU\RI(OHFWURQLFV ,QIRUPDWLRQ7HFKQRORJ\ 0HLW<

VXSHUFRPSXWLQJ IDFLOLW\ DW ,,7 'HOKL DQG SURYLGLQJ

VXSSRUWIRUWKHVDPH
$OJRULWKP GHYHORSHG IRU +%RQG %LJGDWD
$QDO\VLV+ERQG%LJGDWD$QDO\VLV +%$7 WRRO
0ROHFXODU '\QDPLFV 0'  LV D FRPSXWDWLRQDO
WHFKQLTXH WKDW XWLOL]HV 1HZWRQ·V HTXDWLRQV RI
PRWLRQWRVWXG\G\QDPLFVRI ELRPROHFXOHVDQGLV
FRPPRQO\XVHGE\VWUXFWXUDOELRORJLVWV7KHUHLVD
QHHG IRU DGYDQFHG DQDO\WLFV SODWIRUPV DQG
DOJRULWKPV ZKLFK FDQ DQDO\]H GDWD IDVWHU DQG
HIÀFLHQWO\&'$&LPSOHPHQWHGDQDOJRULWKPZLWKLQ
DFDGHPLF LQVWLWXWLRQV WR EH HTXLSSHG ZLWK WKH PDS DQG UHGXFH SDUDGLJP WR FDOFXODWH
VXSHUFRPSXWLQJ SULPDULO\ IRU HGXFDWLRQ SXUSRVHV K\GURJHQ ERQGLQJ LQFOXGLQJ ZDWHUZDWHU
DWDIIRUGDEOHFRVW3$5$06KDYDNLVEHLQJLQVWDOOHG LQWHUDFWLRQV LQODUJHWUDMHFWRULHV
DW YDULRXV DFDGHPLF DQG HQJLQHHULQJ LQVWLWXWLRQV 'HYHORSPHQW RI 8UE$LU,QGLD ² $LU 4XDOLW\
DFURVV WKH FRXQWU\ DQG &'$& KDV GHSOR\HG  $QDO\VLV 7RRO  &'$& KDV GHYHORSHG DQG
VXFKV\VWHPVWLOOGDWH SUHVHQWO\ PDLQWDLQV WKH 8UE$LU,QGLD H[SHUW
([SORLWDWLRQ RI 3$5$0 <XYD,, &'$&·V V\VWHPWKDWGHDOVZLWKYDULRXVFRPSRQHQWVRI
1DWLRQDO 6XSHUFRPSXWLQJ )DFLOLW\ &'$&·V DLU TXDOLW\ PDQDJHPHQW YL] DLU TXDOLW\
VXSHUFRPSXWHU3$5$0<XYD,,KDVH[HFXWHGDERXW PRQLWRULQJ HPLVVLRQ LQYHQWRU\ GLVSHUVLRQ
 VXSHUFRPSXWLQJ MREV DV RI 1RYHPEHU DQGUHFHSWRUPRGHOOLQJDQGPXOWLSOHVFHQDULR
 IURP YDULRXV XVHUV DFURVV WKH FRXQWU\ 7KH DQDO\VLV7KLVZHEEDVHG*,6HQDEOHGV\VWHP
V\VWHPKDVUHJLVWHUHGXVHUVIURPYDULRXV5 ' GHYHORSHG LQ FROODERUDWLRQ ZLWK &HQWUDO
RUJDQL]DWLRQVDQGSUHPLHUDFDGHPLFLQVWLWXWHV7KH 3ROOXWLRQ &RQWURO %RDUG &3&%  SURYLGHV
FXUUHQWXWLOL]DWLRQRI3$5$0<XYD,,LVDERYH& XVHIXOLQSXWVWRSROLF\PDNHUVHQYLURQPHQWDO
'$&XVHV'HGLFDWHG6ORW%RRNLQJ)DFLOLW\ '6%)  UHVHDUFKHUVDQGJHQHUDOSXEOLF7KHV\VWHPLV
IRU  XVHUV WR RIIHU EHWWHU TXDOLW\ RI VHUYLFH 7KH EHLQJ XVHG E\ ,,7 %RPED\ 0DKDUDVKWUD
UHVRXUFHV RQ 3$5$0 <XYD ,, DUH JURXSHG ZLWK 3ROOXWLRQ&RQWURO%RDUGDQG&HQWUDO3ROOXWLRQ
HIIHFWLYHXVHRISDUWLWLRQLQJVRDVWRUHGXFHTXHXH &RQWURO%RDUG
ZDLW WLPH 6HYHUDO +3& DSSOLFDWLRQV IURP YDULRXV  0XOWLOLQJXDO &RPSXWLQJ DQG +HULWDJH
VFLHQFHDQGHQJLQHHULQJGRPDLQZHUHSRUWHGDQG &RPSXWLQJ
RSWLPL]HGIRU3$5$0<XYD,,
‡%KDUDW )LLKS  LV D WRSOHYHO ,QWHUQDWLRQDOL]HG
/DXQFKRI3$5$0,VKDQDW,,7*XZDKDWL&'$& 'RPDLQ1DPH ,'1 ZKLFKHQDEOHVUHJLVWUDWLRQDQG
KDV HVWDEOLVKHG VXSHUFRPSXWHU QDPHG 3$5$0 RZQHUVKLSRIGRPDLQQDPHVLQ,QGLDQODQJXDJHV
,VKDQ DW ,,7 *XZDKDWL FDPSXV ZLWK D SHDN 3UHVHQWO\ LW VXSSRUWV HLJKW ODQJXDJHV YL] +LQGL
FRPSXWLQJSRZHURI7HUDÁRSV3$5$0,VKDQLV 0DUDWKL6LQGKL1HSDOL0DLWKLOL%RGR'RJULDQG
WKHIDVWHVWDQGWKHPRVWSRZHUIXOVXSHUFRPSXWHU .RQNDQL'XULQJWKH\HDU&RXQWU\&RGH7RS/HYHO
GHSOR\HGLQ1(UHJLRQ 'RPDLQ VXSSRUW FF7/'  KDV EHHQ HQDEOHG IRU D
7)IDFLOLW\DW,,7'HOKL&'$&KDVVHWXS7) WRWDORIODQJXDJHV


 $QQXDO5HSRUW

/ R F D O L ] D W L R Q  R I  * R Y H U Q P H Q W  3 R U W D O V  RI&XOWXUH*RYHUQPHQWRI,QGLD
/RFDOL]DWLRQ 3URMHFW 0DQDJHPHQW )UDPHZRUN
7RROV DQG 7HFKQRORJLHV IRU 6LQGKL /DQJXDJH
/30) KDVEHHQGHYHORSHGE\&'$&RQ&ORXG
DQG0RGL6FULSW&'$&KDVGHYHORSHGYDULRXV
SODWIRUP XVLQJ FURZG VRXUFHG DSSURDFK LQ ZKLFK
ODQJXDJH WRROV WKDW LQFOXGH VROXWLRQV IRU 6LQGKL
FLWL]HQ FDQ FRQWULEXWH  LPSURYH WKH WUDQVODWLRQV
/DQJXDJH LQFOXGLQJ 6LQGKL /DQJXDJH /HDUQLQJ
YROXQWDULO\WRGLVVROYHWKHODQJXDJHEDUULHUV/30)
$SS 6DNDO 6LQGKL )RQW DQG 6LQGKL 7ULOLQJXDO
HQDEOHVFURZGVRXUFHGDSSOLFDWLRQORFDOL]DWLRQDQG
'LFWLRQDU\ $SS DQG VROXWLRQV IRU 0RGL VFULSW
LWKDVHQDEOHGORFDOL]DWLRQRIDERXWJRYHUQPHQW
LQFOXGLQJ 0RGL VFULSW OHDUQLQJ DSS DQG GLJLWDO
SRUWDOV LQ  WR  ,QGLDQ ODQJXDJHV LQFOXGLQJ WKH
DQQRWDWLRQDQGDUFKLYLQJV\VWHP
'LJLWDO,QGLDDQGWKH)DUPHU·VSRUWDO
3URIHVVLRQDO(OHFWURQLFVLQFOXGLQJ9/6,
6ROXWLRQVIRU(OHFWLRQ&RPPLVVLRQRI,QGLD&'$&
DQG(PEHGGHG6\VWHPV
KDV GHYHORSHG WKUHH LPSRUWDQW VROXWLRQV OLVWHG
EHORZIRUWKH(OHFWLRQ&RPPLVVLRQRI,QGLD 7UDQVIHU RI 7HFKQRORJ\ 7R7  RI WKH IROORZLQJ
LQQRYDWLYH SURGXFWV VROXWLRQV GHYHORSHG E\ &
¾ 1DWLRQDO9RWHUV6HUYLFHV3RUWDO 1963 $RQH
'$&ZDVFDUULHGRXWGXULQJWKH\HDU
VWRS VROXWLRQ GHYHORSHG WR DVVLVW YRWHUV DQG
SURYLGLQJ LQIRUPDWLRQ UHODWHG WR HOHFWLRQV ¾ 7UD00  7UDIÀF 6LJQDO 0RQLWRULQJ DQG UHPRWH
SROOLQJERRWKVDQGHOHFWRUDOUROOV 0DQDJHPHQW6RIWZDUHRQ6HSWHPEHU

¾ 1DWLRQDO (OHFWRUDO 5ROO 3XULÀFDWLRQ DQG ¾ 6LQJOH3KDVH  7KUHH3KDVH 6PDUW (QHUJ\

$XWKHQWLFDWLRQ SURJUDPPH 1(53$3  IRU 0HWHUVIRU,QGLDQ3RZHU1HWZRUNRQ6HSWHPEHU
DXWKHQWLFDWLQJSXULI\LQJDQGOLQNLQJ$DGKDUZLWK 
HOHFWRUDO UROOV ZDV ODXQFKHG RQ -XO\   ¾ ,QWHUQHW RI 7KLQJV ,R7  SURGXFWV  JHQHULF
ZLWKDQREMHFWLYHRIPDNLQJHOHFWRUDOUROOHUURU VHQVRU ERDUG 8ELVHQVH  ZLUHOHVV VHQVRU
IUHHDQGPXOWLSOHHQWULHVIUHH QRGHV 0RWHV QDPHO\8ELPRWH%/(0RWH:L
¾ (OHFWURQLFDOO\7UDQVPLWWHG3RVWDO%DOORW6\VWHP )L0RWHDQGPXOWLSURWRFROJDWHZD\ :LQJ] DW
(73%6 )LUVWWLPHXVHGLQIRUVHUYLFHYRWHUVLQ 0HLW<'HOKLRQ-XO\
WKHE\HHOHFWLRQDW3XGXFKHUU\ ¾ $XJPHQWHG5HDOLW\ $5 SURGXFWVDW0HLW<1HZ
8QLFRGH 7\SLQJ 7RRO ZLWK 3UHGLFWLRQ ZLWK 'HOKL RQ -XO\   7KH $5 SURGXFWV
VXSSRUW IRU  /DQJXDJHV  7KLV VRIWZDUH WRRO F R Q V L G H U H G  I R U  7 2 7  D U H  I R U  O H D U Q L Q J
GHYHORSHG E\ &'$& HQDEOHV W\SLQJ RI ,QGLDQ HQYLURQPHQWVQDPHO\$5%RDUGDQG$5%RRN
/DQJXDJHV LQ HGLWRUV RI : LQGRZV EDVHG ¾ +DQGKHOG (OHFWURQLF 1RVH +(1  RQ $SULO 
DSSOLFDWLRQV ZLWK 8QLFRGH FRPSOLDQW IRQW &'$& 
KDV HQKDQFHG WKH WRRO WR VXSSRUW L:ULWLQJ ² D
3UHGLFWLYHW\SLQJIHDWXUHZLWK,16&5,37.H\ERDUG ¾ H6DIH7  DQ REMHFW WUDFNLQJ V\VWHP IRU
ZKLFKFXUUHQWO\VXSSRUWV,QGLDQODQJXDJHV HQYLURQPHQW VHQVLWLYH LWHPV LQ WUDQVLW RQ $SULO

'HSOR\PHQW RI -$7$1 -$7$1 WKH 9LUWXDO
0XVHXP%XLOGHUVRIWZDUHGHYHORSHGE\&'$&LV &RPPHUFLDOL]DWLRQDQG 'HSOR\PHQWRI 7UDIÀF
XVHGWRGHYHORSDQGWUDQVIHUGLJLWDOFROOHFWLRQVIRU &RQWURO VROXWLRQV 7UDIÀF &RQWURO VROXWLRQV
SUHVHUYDWLRQ LQ WKH GLJLWDO UHSRVLWRU\ -$7$1 GHYHORSHGE\&'$&ZLWKIXQGLQJIURP0HLW<KDYH
VRIWZDUH KDV EHHQ GHSOR\HG DFURVV  QDWLRQDO EHHQ GHSOR\HG LQ VHYHUDO FLWLHV 7HFKQRORJ\
PXVHXPVDFURVV,QGLDDVVWDQGDUGL]HGE\0LQLVWU\ 7UDQVIHUKDVEHHQGRQHWRDURXQGDJHQFLHVZKR


0LQLVWU\RI(OHFWURQLFV ,QIRUPDWLRQ7HFKQRORJ\ 0HLW<

DUHGHSOR\LQJWKHVHVROXWLRQVDOORYHUWKHFRXQWU\ ,QWHUIDFH *8, 6\VWHPLVGHSOR\HGZLWK:61

QRGHV DQG  *DWHZD\V IRU JURXQGQXW FURS DW 
'HSOR\PHQWRI(QHUJ\PDUNHWVHUYLFHVIRU$VVDP
DQG 0HJKDOD\D (QHUJ\ PDUNHW VHUYLFHV DUH ,QWUD YLOODJHVRI$QDQWDSXU'LVWULFWLQ$QGKUD3UDGHVK
6WDWH%LODWHUDO6KRUW7HUP2SHQ$FFHVV 672$ DQG &RPPHUFLDOL]DWLRQ DQG 'HSOR\PHQW 'LJLWDO
(QHUJ\ 6FKHGXOLQJ 672$ VXSSRUWV WR PDLQWDLQ 3URJUDPPDEOH +HDULQJ $LG &'$& KDV
*5,' GLVFLSOLQH IRU VPDUW ORDG PDQDJHPHQW GHYHORSHG7DUDQJ'LJLWDO3URJUDPPDEOH+HDULQJ
(QHUJ\VFKHGXOLQJKHOSVWRJHQHUDWHDQGPDLQWDLQ $LG '3+$  D IHDWXUH ULFK DIIRUGDEOH DQG HDVLO\
WKHHQWLUHZRUNÁRZRIWKHVFKHGXOHSURFHVV7KHVH PDLQWDLQDEOH GLJLWDO SURJUDPPDEOH KHDULQJ DLG ,W
VHUYLFHV DUH GHSOR\HG LQ FORXG HQYLURQPHQW DW XVHV DGYDQFHG GLJLWDO VLJQDO SURFHVVLQJ
1RUWK(DVW5HJLRQDO'HVSDWFKFHQWUH 1(5/'& IRU WHFKQLTXHV DQG LV EDVHG RQ LQGLJHQRXVO\
XVHE\6WDWH/RDG'HVSDWFK&HQWUH 6/'& RI1(
GHYHORSHG DSSOLFDWLRQ VSHFLÀF LQWHJUDWHG FLUFXLW
VWDWHV7KLVSURYLGHVDVWDQGDUGLVHGFRVWHIIHFWLYH
NQRZQDV1$$'$7UDQVIHURI7HFKQRORJ\ 7R7 ZDV
VROXWLRQ IRU DOO 6/'&V ,Q WKH LQLWLDO SKDVH WKHVH
FDUULHG RXW WR LQGXVWU\ SDUWQHUV 0V .(/7521
VHUYLFHV DUH SURYLGHG WR ERWK $VVDP DQG
7KLUXYDQDQWKDSXUDP DQG 0V %HVW +HDULQJ
0HJKDOD\D6/'&V
6ROXWLRQ 1HZ 'HOKL &'$& KDV VXSSOLHG 7DUDQJ
XQGHUJRYHUQPHQWVFKHPHVLQFOXGLQJ5DMLY9LG\D
0LVVLRQ 66$  $',3 6FKHPH $VVLVWDQFH WR
'LVDEOHG 3HUVRQV IRU 3XUFKDVH)LWWLQJ RI
$LGV$SSOLDQFHV'HSDUWPHQWRI(PSRZHUPHQWRI
3HUVRQV ZLWK 'LVDELOLWLHV  DQG 5%6. 6FKHPH
5DVKWUL\D %DO 6ZDVWK\D .DU\DNUDP 1DWLRQDO
+HDOWK0LVVLRQ0LQLVWU\RI+HDOWK )DPLO\:HOIDUH
*RYWRI,QGLD
6RIWZDUH7HFKQRORJLHVLQFOXGLQJ)266
'HSOR\PHQWDQG3UROLIHUDWLRQRI%266'XULQJ
WKH\HDU&'$&FDUULHGRXWVHYHUDOGHSOR\PHQWVRI
%266  DQG LWV YDULDQWV IRU PDQ\ DJHQFLHV
LQFOXGLQJ 'HIHQFH 5HVHDUFK DQG 'HYHORSPHQW
/DERUDWRU\ '5'/  ,QGLDQ $UP\ ,QGLDQ 1DY\
'HSOR\PHQWRI+$5,7$35HF,VLRQ7HFKQRORJ<
JRYHUQPHQW GHSDUWPHQWV DQG HGXFDWLRQDO
IRU$JULFXOWXUH +$5,7$35,<$ +$5,7$35,<$
LQVWLWXWHVRI7DPLO1DGXDQG$QGDPDQDQG1LFREDU
SURYLGHVPLFURFOLPDWHLQIRUPDWLRQIURPDJULFXOWXUH
7KHUH ZHUH DURXQG  GHSOR\PHQWV RI %266
ÀHOGV XVLQJ :LUHOHVV 6HQVRU 1HWZRUNV :61  ,W
/LQX[LQODSWRSVLQ*RYHUQPHQWRI2GLVKD6HYHUDO
HQDEOHV GLVVHPLQDWLRQ RI ORFDWLRQ VSHFLÀF
% 26 6 DZDUHQHVV ZRUNVKRSV DQG WUDLQLQJ
DGYLVRULHVWRIDUPHUVRQSHVWGLVHDVHIRUHZDUQLQJ
SURJUDPV ZHUH FRQGXFWHG LQ FROOHJHV RI 7DPLO
DQGRSWLPDOLUULJDWLRQVFKHGXOHV:61JDWKHUVUHDO
1DGX DV SKDVH  &'$& LV GHYHORSLQJ VHUYLFH
WLPHPLFURFOLPDWHGDWDDWFURSFDQRS\IURPIDUPHU
RULHQWHG FRPSRQHQW EDVHG 2SHUDWLQJ 6\VWHP RQ
ÀHOGVDQGLVXVHGE\GHFLVLRQVXSSRUWPRGHOVWR
WKH EDVLV RI UHVHDUFK ZRUN RI ,,7 0DGUDV
SURYLGH ORFDWLRQ VSHFLÀF SHUVRQDOL]HG DJUR
'HYHORSPHQW RI D %266 OLJKW ZHLJKW 26 ZLWK
DGYLVRULHV WKURXJK D ZHEEDVHG *UDSKLFDO 8VHU


 $QQXDO5HSRUW

PLQLPDO SDFNDJHV DQG PRUH ÀQH JUDLQHG FRQWURO XQGHUVHUYHG FRPPXQLWLHV WKURXJK SURYLVLRQ RI
RYHUVHUYLFHVLVDOVRXQGHUGHYHORSPHQW LQIRUPDWLRQ SURGXFWV DQG VHUYLFHV LQ UHJLRQDO
ODQJXDJHV 7KH SODWIRUP LV DYDLODEOH LQ DOO 
(QKDQFHPHQWDQG'HSOR\PHQWRIH3UDPDDQ
VFKHGXOHGODQJXDJHVEHVLGHV(QJOLVKDQGDWWUDFWV
'XULQJWKH\HDU&'$&FDUULHGRXWHQKDQFHPHQWV
DERXW  PLOOLRQ KLWV  PRQWK ,QIRUPDWLRQ EDVHG
UHODWHG WR EHWWHU SHUIRUPDQFH DQG LPDJH
PRELOHDSSVLQORFDOODQJXDJHVDQGUHODWHGWRWKH
S U R F H V V L Q J  L Q  H  3 U D P D D Q   W K H  Q D W L R Q D O
OLYHOLKRRGVHFWRUVZHUHDYDLODEOHLQWKHSRUWDO
DXWKHQWLFDWLRQ IUDPHZRUN WR SURYLGH VWDQGDUG
EDVHG XQLIRUP DXWKHQWLFDWLRQ PHFKDQLVP IRU (&+$5$. ² DQ H&KDQQHO IRU +HUEV $URPDWLF
YDULRXV JRYHUQPHQW VHUYLFHV  VHUYLFHV KDYH 5DZPDWHULDODQG.QRZOHGJHKDVEHHQGHYHORSHG
EHHQ LQWHJUDWHG ZLWK H3UDPDDQ $XWKHQWLFDWLRQ IRUWKH1DWLRQDO0HGLFLQDO3ODQWV%RDUG0LQLVWU\RI
VHUYHU DQG  VHUYLFHV DUH XVLQJ WKH $DGKDDU $<86+WRSURYLGHDYLUWXDOSODWIRUPIRULQIRUPDWLRQ
HFRV\VWHPSURYLGHGE\&'$&$PRELOH$SSIRUH H[FKDQJH EHWZHHQ VWDNHKROGHUV LQ WKH PHGLFLQDO
3UDPDDQ KDV DOVR EHHQ GHYHORSHG DQG PDGH SODQWVVHFWRU7KHVHUYLFHZDVIRUPDOO\ODXQFKHGRQ
DYDLODEOH IRU SXEOLF ,956 EDVHG $DGKDDU $XJXVW   DW -DLSXU 5DMDVWKDQ 2XWUHDFK
DXWKHQWLFDWLRQZDVLQWURGXFHGDQGPRUHWKDQRQH ZRUNVKRSVRQ9LNDVSHGLD  ZHUHRUJDQL]HGDW
FURUHWUDQVDFWLRQVDUHFRPSOHWHGXVLQJWKLVV\VWHP YDULRXVEORFNGLVWULFWDFURVVVWDWHV
7KURXJK 0RELOH 6HYD 3ODWIRUP ,QWHJUDWLRQ RI H%DVWD ² (QDEOHPHQW RI VFKRRO ERRNV DV H
GHSDUWPHQWV &'$& WKURXJK LWV 0RELOH 6HYD ERRNV ,Q OLQH ZLWK JRYHUQPHQW·V 'LJLWDO ,QGLD
SODWIRUPLQWHJUDWHG*RYHUQPHQWGHSDUWPHQWV LQLWLDWLYH H%DVWD SURYLGHV D IUDPHZRUN WR PDNH
DFURVVWKHFRXQWU\ZKLFKSURYLGHVVHUYLFHVWRWKH VFKRROERRNVDFFHVVLEOHLQGLJLWDOIRUPDVHERRNV
FLWL]HQVWKURXJKPRELOHSKRQHVDQGWDEOHWV ERRNV SGIH3XEDQGPS KDYH
EHHQ SXEOLVKHG RQ WKH SRUWDO E\ &%6(  6WDWH
(+DVWDNVKDU  &'$&·V 'LJLWDO 6LJQDWXUH IRU
%RDUGV DQG D IHZ SULYDWH SXEOLVKHUV $ERXW 
SXEOLFXVH(+DVWDNVKDU&'$&·VH6LJQ6HUYLFH
VFKRRO ZRUNVKRSV KDYH EHHQ FRQGXFWHG WUDLQLQJ
HQDEOHV LQVWDQW VLJQLQJ RI GRFXPHQWV RQOLQH E\
PRUH WKDQ  WHDFKHUV DQG  VFKRROV RQ
FLWL]HQV LQ D OHJDOO\ DFFHSWDEOH IRUP 7KH VHUYLFH
WHFKQRORJLHVLQFOXGLQJH%DVWD:LQGRZVYHUVLRQRI
ZDVODXQFKHGE\6KUL5DYL6KDQNDU3UDVDG+RQ·EOH
H%DVWD$SSKDVEHHQKRVWHGRQ:LQGRZVVWRUHDQG
0LQLVWHU IRU /DZ  -XVWLFH DQG (OHFWURQLFV  ,7
GHVNWRSYHUVLRQRIH%DVWD$SSLVLQWKHÀQDOVWDJHV
*RYHUQPHQW RI ,QGLD RQ 6HSWHPEHU   DQG
RIFRPSOHWLRQ
HQDEOHVDQ$DGKDDUKROGHUZLWKUHJLVWHUHGPRELOH
QXPEHU ZLWK $DGKDDU WR HOHFWURQLFDOO\ VLJQ D 'HSOR\PHQWRIVROXWLRQVXQGHU',6&3URMHFW
IRUPGRFXPHQW DQ\WLPH DQG DQ\ZKHUH XVLQJ D $V SDUW RI 'LJLWDO ,QGLD LQLWLDWLYH &'$& LV
GHYLFH &'$& KDV HQDEOHG  DJHQFLHV WR GHYHORSLQJ DQG GHSOR\LQJ VROXWLRQV IRU YDULRXV
OHYHUDJH H+DVWDNVKDU IRU H6LJQ SXUSRVHV DQG VHFWRUVVXFKDV+HDOWK(GXFDWLRQDQG$JULFXOWXUH
RIIHUHG  VLJQDWXUHV DV RQ 1RYHPEHU 
¾ ' H S O R \ H G  2 Y H U K H D G  V F D Q Q H U  E D V H G

$QQDGDUSDQ 6PDUW 6\VWHP DW 6LQJXU 7DSDVKL
8VDJHRI9LNDVSHGLD&ROODERUDWLYHNQRZOHGJH 0DOLN.ULVKDN%D]DU 670.% 6LQJXU+RRJKO\
VKDULQJSRUWDO9LNDVSHGLDLVDPXOWLOLQJXDOPXOWL
¾ 'HSOR\HG $QQDGDUSDQ '\QDPLF 6\VWHP IRU
VHFWRUDOFROODERUDWLYHNQRZOHGJHVKDULQJSODWIRUP
TXDOLW\DQDO\VLVRIPRRQJWXU%HQJDOJUDPDQG
SRUWDOGHYHORSHGE\&'$&WKDWVHHNVWRHPSRZHU
NDEXOLFKDQQDDW$30&*DGDJ.DUQDWDND


0LQLVWU\RI(OHFWURQLFV ,QIRUPDWLRQ7HFKQRORJ\ 0HLW<

¾ 'HSOR\HG&79,(:6\VWHPIRUTXDOLW\$QDO\VLV SHUIRUPDQFH PDQDJHPHQW DQG VHFXULW\

RI&KLOOLDW$30&+XEOL.DUQDWDND PDQDJHPHQW
¾ (QKDQFHG 0RWKHU DQG &KLOG 7UDFNLQJ 6\VWHP ¾ 'XULQJWKH\HDU&'$&GHSOR\HGYDULRXV&\EHU
DSSOLFDWLRQ WR IDFLOLWDWH 0LQLVWU\ RI +HDOWK  )RUHQVLFV 7RROV DW VHYHUDO ODZ HQIRUFHPHQW
)DPLO\ :HOIDUH WR GLJLWL]H WKH FXUUHQW PDQXDO DJHQFLHV /($V DQGFRQGXFWHGDGYDQFHGOHYHO
SURFHVVRIWUDFNLQJHOLJLEOHFRXSOHVSUHJQDQW WUDLQLQJ SURJUDPV IRU RIÀFHUV RI $UP\ 1DY\
ZRPHQ DQG QHZO\ ERUQ FKLOGUHQ E\ UHSODFLQJ 3ROLFH)RUHQVLFODERUDWRULHV1,&%(/%61/
WKHKXJHUHJLVWHUVZLWKOLJKWZHLJKWHDV\WRFDUU\ ,QWHOOLJHQFH EXUHDX ,QFRPH 7D[ GHSDUWPHQWV
WDEOHWV DQGDFDGHPLD
¾ (QKDQFHPHQWV DUH EHLQJ FDUULHG RXW LQ ¾ $VSDUWRI,QIRUPDWLRQ6HFXULW\(GXFDWLRQDQG
H6DQMHHYDQL7HOHPHGLFLQH6RIWZDUHWRSURYLGH $ZDUHQHVV ,6($  3KDVH  ,, LQLWLDWLYH 
EHWWHUVHUYLFHV ZRUNVKRSVZHUHFRQGXFWHGDFURVVPDQ\VWDWHV
FRYHULQJDERXWSDUWLFLSDQWVDQGDURXQG
&\EHU6HFXULW\DQG&\EHU)RUHQVLFV
 WUDLQLQJV ZHUH FRQGXFWHG IRU DURXQG 
(QKDQFHPHQW GHSOR\PHQWV RI VROXWLRQV DQG JRYHUQPHQW RIÀFLDOV LQ FROODERUDWLRQ ZLWK
7UDLQLQJLQ&\EHU6HFXULW\ 1,(/,7
&'$& FDUULHG RXW GHVLJQ GHYHORSPHQW DQG +HDOWK,QIRUPDWLFV
XSJUDGDWLRQRIIROORZLQJSURGXFWVUHODWHGWRF\EHU
'HSOR\PHQWRIH$XVKDGKL'UXJ:DUHKRXVLQJ
VHFXULW\DQGF\EHUIRUHQVLFVGXULQJWKH\HDU
6ROXWLRQ &'$&·V H$XVKDGKL VROXWLRQ LV D ZHE
¾ 0.DYDFK LV D FRPSUHKHQVLYH PRELOH GHYLFH EDVHG 6XSSO\ &KDLQ 0DQDJHPHQW VROXWLRQ WKDW
VHFXULW\VROXWLRQIRU$QGURLGGHYLFHVWRVHFXUH IDFLOLWDWHV SXUFKDVH LQYHQWRU\ PDQDJHPHQW DQG
PRELOHUHVRXUFHVIURPYDULRXVWKUHDWVOLNHGDWD GLVWULEXWLRQRIYDULRXVGUXJVVXWXUHVDQGVXUJLFDO
FRPSURPLVH PDOLFLRXV DSSOLFDWLRQV SK\VLFDO LWHPVWRYDULRXV'LVWULFW'UXJ:DUHKRXVHV0HGLFDO
WKHIWVDQGPLVXWLOL]DWLRQRIKDUGZDUHUHVRXUFHV &ROOHJHV 'LVWULFW +RVSLWDOV &RPPXQLW\ +HDOWK
HWF &HQWUHV 3ULPDU\ +HDOWK &HQWUHV DQG 'UXJ
¾ &\EHU 7KUHDW $QDO\]HU LV HPSRZHUHG ZLWK 'LVWULEXWLRQ&HQWUHVLQDQHQWLUHVWDWH7KHVROXWLRQ
FDSDELOLWLHVIRUG\QDPLFDOO\FRQÀJXULQJYDULRXV LVEHLQJGHSOR\HGLQVWDWHVDVSDUWRIQDWLRQZLGH
VHQVRUVLQWHUPVRIQHWZRUNGRPDLQVFRQWHQWV UROORXWDQGDERXWODNKWUDQVDFWLRQVSHUGD\DUH
DQG FRQÀJXUDWLRQV DQG VXSSRUWV ODUJH VFDOH EHLQJUHFRUGHGIRUWKLVV\VWHP
DWWDFN GDWD FROOHFWLRQ WKUHDW PRQLWRULQJ DQG ' H S O R \ P H Q W  R I  H  6 X V K U X W    + R V S L W D O
GHWHUPLQDWLRQRIODWHVWDWWDFNWUHQGV 0DQDJHPHQW DQG ,QIRUPDWLRQ 6ROXWLRQ &
¾ '$53$1 LV D QHWZRUN PDQDJHPHQW V\VWHP '$&·VH6XVKUXWV\VWHPLVDZHEEDVHG+RVSLWDO
XVHGIRUPDQDJLQJPLVVLRQFULWLFDOQHWZRUNVRI 0DQDJHPHQW ,QIRUPDWLRQ 6\VWHP +0,6  DQG LV
RXU QDWLRQ DQG GHVLJQHG WR PDQDJH VPDOO EHLQJ LPSOHPHQWHG LQ *RYHUQPHQW KRVSLWDOV LQ
HQWHUSULVH QHWZRUNV WR KXJH FRXQWU\ZLGH 5DMDVWKDQ 0DKDUDVKWUD 2GLVKD 7HODQJDQD
QHWZRUNV ,W LV HPSRZHUHG ZLWK QHWZRUN 3XQMDEDQG$QGKUD3UDGHVK
PRQLWRULQJDQGPDQDJHPHQWIDFLOLWLHVOLNHIDXOW 'HSOR\PHQWRI7HOHPHGLFLQH6ROXWLRQV&'$&
PDQDJHPHQW FRQÀJXUDWLRQ PDQDJHPHQW KDV GHYHORSHG DQG GHSOR\HG 7HOHPHGLFLQH


 $QQXDO5HSRUW

VROXWLRQVDWYDULRXVVWDWHVRI,QGLDLQFOXGLQJ3XQMDE \HDU KDV  VXSSRUWHG WKH ,,7V LQ FRQGXFWLQJ WKH

+LPDFKDO3UDGHVK.HUDODDQG$VVDPLQ,QGLD,Q DQQXDO *$7( H[DPLQDWLRQ 7KH H[DPLQDWLRQ
DGGLWLRQ &'$&·V WHOHPHGLFLQH VROXWLRQV DUH W\SLFDOO\VHHVRYHUPLOOLRQFDQGLGDWHVUHJLVWHULQJ
GHSOR\HG DW RWKHU FRXQWULHV LQFOXGLQJ 0\DQPDU HYHU\\HDU&'$&KDVEXLOWWKHDSSOLFDQWSRUWDODQG
7DQ]DQLD$UPHQLDDQG.\UJ\]VWDQ DGPLQSRUWDOVXSSRUWLQJIXQFWLRQDOLWLHVIRUVWXGHQWV
DQG DGPLQLVWUDWRUV -$0 ZDV DOVR FRQGXFWHG IRU
'HYHORSPHQW RI %LJ 'DWD $QDO\WLFV VROXWLRQV
WKHWKLUGFRQVHFXWLYH\HDUXVLQJ&'$&·VVRIWZDUH
IRU KHDOWKFDUH &'$& LV GHYHORSLQJ %LJ 'DWD
VROXWLRQ
$QDO\WLFVVROXWLRQVIRUKHDOWKFDUHDQDO\VLVWRKHOSLQ
GHULYLQJYDOXDEOHNQRZOHGJHIURPODUJHDPRXQWRI &DSDFLW\EXLOGLQJLQ(OHFWURQLF3URGXFW'HVLJQ
GDWD DQG3URGXFWLRQ7HFKQRORJ\$VSDUWRI&DSDFLW\
EXLOGLQJ LQ (OHFWURQLF 3URGXFW 'HVLJQ DQG
¾ %LJ 'DWD IUDPHZRUN IRU +HDOWKFDUH $QDO\WLFV
3URGXFWLRQ 7HFKQRORJ\ (3'37  &'$& LQLWLDWHG
ZLWK JHQHULF ZHE DSSOLFDWLRQ IRU EHWWHU
LQGXVWU\ UHOHYDQW IRUPDO DQG QRQIRUPDO WUDLQLQJ
KHDOWKFDUH PDQDJHPHQW 7KH IUDPHZRUN
SURJUDPV WR JHQHUDWH VNLOOHG PDQSRZHU ZKLFK
IDFLOLWDWHV VWDWLVWLFDO DQDO\VLV RQ FRQVROLGDWHG
LQFOXGHV 6KRUWWHUP &HUWLÀFDWH &RXUVHV IRU
KHDOWKFDUHGDWDIRUDQDO\]LQJGLVHDVHVWRWUDFN
(QJLQHHULQJVWXGHQWV6NLOO'HYHORSPHQW3URJUDPV
RXWEUHDN RI GLVHDVHV DQG SURYLGH TXLFNHU
WDUJHWHG WRZDUGV VWXGHQWV DQG IDFXOW\ RI
UHVSRQVH
3RO\WHFKQLF,7, &ROOHJHV 3* 'LSORPD FRXUVHV
¾ %LJ 'DWD WHFKQRORJ\ EDVHG GHFLVLRQ VXSSRUW )DFXOW\ 3DJH  'XULQJ WKH \HDU PRUH WKDQ 
V\VWHPVIRUFDQFHUWUHDWPHQWVLQFROODERUDWLRQ FDQGLGDWHV ZHUH WUDLQHG  XQGHUJRLQJ WUDLQLQJ DV
ZLWKDFDGHPLFLQGXVWULDODQGFOLQLFDOOHDGHUVLQ SDUW RI WKH XSGDWLRQ 3URJUDPV DQG 07HFK
,QGLDDQG1HWKHUODQGV 3URJUDPV
(GXFDWLRQDQG7UDLQLQJ 1RUWK(DVW
3RVW*UDGXDWH'LSORPDSURJUDPVLQDGYDQFHG 'HSOR\PHQWRI6XSHUFRPSXWLQJVROXWLRQV
,&7(DUHDV&'$&LVFRQGXFWLQJ3RVW*UDGXDWH
¾ &'$&,,7*XZDKDWL6XSHUFRPSXWLQJ)DFLOLW\
'LSORPDSURJUDPVLQDGYDQFHG,&7DUHDVVXFKDV
3$5$0,VKDQZLWKDSHDNFRPSXWLQJSRZHURI
0RELOH&RPSXWLQJ9/6,'HVLJQ,7,QIUDVWUXFWXUH
 7HUDÁRS ZDV LQDXJXUDWHG E\ +RQ·EOH
6\VWHPVDQG6HFXULW\*HRLQIRUPDWLFV(PEHGGHG
0LQLVWHU IRU +5' 6KUL 3UDNDVK -DYDGHNDU RQ
6\VWHP 'HVLJQ 6\VWHP 6RIWZDUH 'HYHORSPHQW
6HSWHPEHUDW,,7*XZDKDWL
,QWHUQHWRI7KLQJV%LRPHGLFDO,QVWUXPHQWDWLRQDQG
+HDOWK ,QIRUPDWLFV %LJ 'DWD $QDO\WLFV DQG +3& ¾ 3$5$07(= D +LJK 3HUIRUPDQFH &RPSXWLQJ
6\VWHP $GPLQLVWUDWLRQ $ WRWDO RI DURXQG  &HQWUHZDVLQDXJXUDWHGRQ$XJXVWDW
VWXGHQWVZLOOEHWUDLQHGE\0DUFKWKURXJK& 7H]SXU8QLYHUVLW\$VVDP
'$& WUDLQLQJ FHQWUHV DQG $XWKRUL]HG 7UDLQLQJ
¾ &'$&  1,7 6LNNLP 3$5$0 .DQFKHQMXQJD
&HQWUHV $7&V  &'$& DOVR RIIHUV 0DVWHU
6XSHUFRPSXWLQJ )DFLOLW\ ZDV LQDXJXUDWHG E\
3URJUDPVLQFROODERUDWLRQZLWKGLIIHUHQWXQLYHUVLWLHV
6KUL6ULQLYDV3DWLO+RQ EOH*RYHUQRURI6LNNLP
LQDGYDQFHGDUHDVRI,&7
RQ $SULO   DW 1,7 6LNNLP ORFDWHG DW
6XSSRUWWRZDUGVFRQGXFWLRQRI*$7(DQG-$0 5DYDQJOD
H[DPLQDWLRQV&'$&IRUWKHIRXUWKFRQVHFXWLYH
/DXQFKRI2QOLQH$XFWLRQ6\VWHP´1()UHVK2QOLQH


0LQLVWU\RI(OHFWURQLFV ,QIRUPDWLRQ7HFKQRORJ\ 0HLW<

$XFWLRQ 6\VWHPµ GHYHORSHG E\ &'$& ZDV 0RWLWKDQJ +LJKHU 6HFRQGDU\ 6FKRRO 7KLPSKX
ODXQFKHGRQ$XJXVWDW*DQJWRNE\6KUL %KXWDQ E\ /\RQSR 1RUEX :DQJFKXN 0LQLVWHU RI
6RPQDWK 3RXG\DO +RQ·EOH 0LQLVWHU IRU )RRG (GXFDWLRQ5R\DO*RYHUQPHQWRI%KXWDQDQG+(
6HFXULW\DQG$JULFXOWXUH'HYHORSPHQW'HSDUWPHQW -DLGHHS6DUNDU$PEDVVDGRURI,QGLDWR%KXWDQ
*RYWRI6LNNLP
7DQ]DQLD ,&7 5HVRXUFH &HQWUH DW 10$,67 LQ
:RUNVKRSVDQG7UDLQLQJLQ1(&'$&&RQGXFWHG $UXVKD7DQ]DQLD7KH,&75HVRXUFH&HQWUHDW10
DURXQGZRUNVKRSVWUDLQLQJVLQWKH1(UHJLRQRQ $,67LQ$UXVKD7DQ]DQLDZDVLQDXJXUDWHGRQ-XO\
YDULRXV WHFKQLFDO DUHDV LQFOXGLQJ &\EHU 6HFXULW\ E\+RQ'U-R\FH1GDOLFKDNR(GXFDWLRQ
+3&,R7%266H/HDUQLQJHWF 0LQLVWHU RI 8QLWHG 5HSXEOLF RI 7DQ]DQLD LQ WKH
SUHVHQFH RI +( 6K 6DQGHHS $U\D +LJK
,QWHUQDWLRQDO,QLWLDWLYHV
&RPPLVVLRQHURI,QGLDWR7DQ]DQLD
9LHWQDP 6XVWDLQDEOH ,7 ,QIUDVWUXFWXUH IRU
*X\DQD 8SJUDGDWLRQ RI ,7 ,QIUDVWUXFWXUH 
$GYDQFHG ,7 7UDLQLQJ XVLQJ FRQYHQWLRQDO YLUWXDO
GHSOR\PHQWRI&'$&:HE%DVHG,QWHJUDWHG2IÀFH
FODVVURRPDQGH/HDUQLQJ7HFKQRORJLHVLQ9LHWQDP
$XWRPDWLRQ 6\VWHP DQG 3RUWDO DW &$5,&20
XQGHU $6($1  ,Q WKH SUHVHQFH RI +RQ EOH 3ULPH
6HFUHWDULDW LQ *X\DQD  6LJQLQJ RI $JUHHPHQW
0LQLVWHURI,QGLD VYLVLWGXULQJ6HSWHPEHU
EHWZHHQ0($ &'$&RQ6HSWHPEHUIRU
WR9LHWQDP
VHWWLQJ XS RI ¶8SJUDGDWLRQ RI ,7 ,QIUDVWUXFWXUH 
*KDQD  )LYH \HDUV DGGLWLRQDO VXSSRUW WR ,QGLD ² GHSOR\PHQWRI&'$&:HE%DVHG,QWHJUDWHG2IÀFH
*KDQD .RÀ $QQDQ &HQWUH RI ([FHOOHQFH LQ ,&7 DW $XWRPDWLRQ 6\VWHP DQG 3RUWDO DW &$5,&20
$FFUD *KDQD  +RQ·EOH 3UHVLGHQW RI ,QGLD 'U 6HFUHWDULDWLQ*X\DQD
3UDQDE0XNKHUMHHYLVLWHG,QGLD²*KDQD.RÀ$QQDQ
7DMLNLVWDQ&RPSXWHU/DERUDWRULHVLQ6FKRROVLQ
&HQWUH RI ([FHOOHQFH LQ ,&7 GXULQJ -XQH  ² 
7DMLNLVWDQ0LQLVWU\RI([WHUQDO$IIDLUV 0($ DQG&

'$& KDYH VLJQHG DQ $JUHHPHQW RQ 2FWREHU 
9DQXDWX&HQWUHRI([FHOOHQFHLQ,7LQ9DQXDWX6K IRUVHWWLQJXSRI&RPSXWHU/DEVLQ6FKRROV
3L\XVK*RHO0LQLVWHURI6WDWHIRU3RZHU&RDO1HZ RI7DMLNLVWDQ7KH,7LQIUDVWUXFWXUHKDVEHHQVHWXS 
DQG5HQHZDEOH(QHUJ\DQG0LQHV*RYHUQPHQWRI WKHODEVKDYHEHHQRSHUDWLRQDOL]HGKDQGHGRYHUWR
,QGLDDQG+(0U%UXQR/HLQJNRQH7DX0LQLVWHUIRU WKH7DMLNVLGHRQ$XJXVW
)RUHLJQ $IIDLUV 5HSXEOLF RI 9DQXDWX VLJQHG D
3URSRVHG QHZ ,QLWLDWLYHV 7KH IROORZLQJ WZR
0HPRUDQGXP RI 8QGHUVWDQGLQJ RQ 2FW 
SURSRVDOVKDYHEHHQHYROYHGIRUFRQVLGHUDWLRQ
IRU(VWDEOLVKLQJ,QGLD9DQXDWX&HQWUHRI([FHOOHQFH
LQ,7WREHVHWXSE\&'$& ¾ 0LFURSURFHVVRU 'HYHORSPHQW ,QLWLDWLYH
0',   &'$& KDV HYROYHG D SURSRVDO WR
3DSXD1HZ*XLQHD&HQWUHRI([FHOOHQFHLQ,7LQ
GHVLJQDQGGHYHORSDKLJKSHUIRUPDQFHELW
3DSXD 1HZ *XLQHD  0R8 ZDV VLJQHG RQ
5 , 6 &  D U F K L W H F W X U H  E D V H G  4 X D G  F R U H
1RYHPEHUIRUVHWWLQJXSRI¶,QGLD²3DSXD
0LFURSURFHVVRUDVD6\VWHPRQ&KLS 6R& 
1HZ *XLQHD &HQWUH RI ([FHOOHQFH LQ ,7· DW 3DSXD
1HZ*XLQHD ¾ 1DWLRQDOH%KDVKD003&'$&KDVHYROYHG
D SURSRVDO IRU H%KDVKD ZLWK ZKHUH WKH PDLQ
%KXWDQ ,1'2%KXWDQ H/LEUDU\ 3URMHFW  7KH
WKUXVWLVWRKHOSDFFHOHUDWHWKHLPSOHPHQWDWLRQ
,1'2%KXWDQ H/LEUDU\ 3URMHFW VHWXS E\ &'$&
R I  O R F D O L ] H G  H  J R Y H U Q D Q F H  E \  P D N L Q J
ZDV LQDXJXUDWHG RQ 6HSWHPEHU   DW


 $QQXDO5HSRUW

JRYHUQPHQW VHUYLFHV DFFHVVLEOH WR FRPPRQ (OHFWURPDJQHWLF ,QWHUIHUHQFHFRPSDWLELOLW\

PDQ 7KH NH\ SULQFLSOHV RI H%KDVKD LQFOXGH (0,(0&  7KHUPDO (QJLQHHULQJ RI HOHFWURQLF
WUDQVIRUPDWLRQ RI ,&7 %DVHG 3XEOLF 6HUYLFHV KDUGZDUHDQWHQQDV3KRWRQLFGHYLFHV0LFURZDYH
WKURXJK/RFDOLVDWLRQVWDQGDUGVDQGJXLGHOLQHV FRPSRQHQWVPRGXOHVDQG,QGXVWULDO5)0LFURZDYH
DGRSWLRQ VKDUHG XQLÀHG PXOWLOLQJXDO FLWL]HQ DSSOLFDWLRQSURGXFWV
GDWDUHSRVLWRU\DFFHVVLEOHWRDOOH*RY003V
$FKLHYHPHQWV
FORXG EDVHG ORFDOL]DWLRQ WRROV DQG ORFDOLVHG
PRELOHEDVHGGHOLYHU\ 6RPHRIWKHPDMRUSURJUDPPHVRI6$0((5DUH

 6WUDWHJLF 1HHG 6RFLHW\ IRU $SSOLHG ‡ 0HGLFDO /LQHDU $FFHOHUDWRU 3URJUDPPH IRU
0LFURZDYH (OHFWURQLFV (QJLQHHULQJ DQG &DQFHU7KHUDS\
5HVHDUFK 6$0((5 ‡ 1RQ 'HVWUXFWLYH 7HVWLQJ 1'7  XVLQJ OLQHDU
6RFLHW\ IRU $SSOLHG 0LFURZDYH (OHFWURQLFV $FFHOHUDWRU 7HFKQRORJ\ IRU VWUDWHJLF QDWLRQDO
(QJLQHHULQJ  5HVHDUFK 6$0((5  LV DQ SURJUDPPHV
DXWRQRPRXV 5  ' LQVWLWXWH XQGHU 0LQLVWU\ RI ‡ $WPRVSKHULF ,QVWUXPHQWDWLRQ SURJUDPPH IRU
(OHFWURQLFV DQG ,QIRUPDWLRQ 7HFKQRORJ\ 0HLW<  ZHDWKHUPRQLWRULQJ
*RYWRI,QGLDVLQFH,WZDVFUHDWHGZLWKWKH
‡ +LJK 3RZHU 0LFURZDYH  5) FRPSRQHQWV 
REMHFWLYHRISXUVXLQJUHVHDUFKDQGGHYHORSPHQWLQ
VXEV\VWHPV
WKHÀHOGRI5) PLFURZDYHV6$0((5LVLQYROYHGLQ
GHYHORSPHQWRI5)DQGPLFURZDYHEDVHGV\VWHPV ‡ 3KRWRQLFV SURJUDPPH LQFOXGLQJ 7HUDKHUW]
DQG SURGXFWV UHTXLUHG E\ YDULRXV JRYHUQPHQW 7HFKQRORJ\
DJHQFLHVOLNH'HIHQFH6SDFH(DUWK6FLHQFHVDQG ‡ (0,(0&3URJUDPPH
,QGLDQ0HWHRURORJ\'HSDUWPHQW
‡ 5DGDU $QWHQQDVIRUYDULRXVDLUERUQH JURXQG
7KHRWKHUWZR&HQWHUVRI6$0((5DUHORFDWHGDW DSSOLFDWLRQV
&KHQQDLDQG.RONDWDUHVSHFWLYHO\NQRZQDV&HQWUH
IRU (OHFWURPDJQHWLFV DQG &HQWUH IRU 0LOOLPHWHU ‡ 0PZDYH7HFKQRORJ\
:DYH 5HVHDUFK 7ZR DGGLWLRQDO FHQWUHV 6$0((5 675DGDU
9LVDNKDSDWQDPDQG6$0((5*XZDKDWLKDYHEHHQ
7KH SURMHFW HQYLVLRQV GHVLJQ GHYHORSPHQW DQG
FUHDWHGDQGVRRQZRXOGEHRSHUDWLRQDOIURPWKHLU
LQVWDOODWLRQRI675DGDUQDWLRQDOIDFLOLW\DW*XZDKDWL
UHVSHFWLYH SODFHV 6$0((5 9LVDNKDSDWQDP LV
8QLYHUVLW\IRUQRUWKHDVWVWDWHVZLWKHPSKDVLVRQFRVW
NQRZQDV(OHFWURPDJQHWLF(QYLURQPHQWDO(IIHFWV
HIIHFWLYH LQGLJHQL]DWLRQ RI WKLV VRSKLVWLFDWHG
(  DQG 6$0((5 *XZDKDWL IRU GHYHORSPHQW RI
WHFKQRORJ\ 67 UDGDU SURYLGHV YHUWLFDO SURÀOHV RI
0LFURZDYH7XEHVDQG+LJK3RZHU&RPSRQHQWV
KRUL]RQWDOZLQGVLQWKH7URSRVSKHUHDQG6WUDWRVSKHUH
6$0((5XQGHUWDNHVDQGH[HFXWHVUHVHDUFKZRUN 5HJLRQRIDWPRVSKHUH,WLVDJURXQGEDVHGFOHDUDLU
IRU YDULRXV *RYHUQPHQW DJHQFLHV SXEOLF VHFWRU FRKHUHQW 'RSSOHU UDGDU ,W WUDQVPLWV XQFRGHG DQG
XQGHUWDNLQJVDQGLQGXVWULHVLQLWV H[SHUWDUHDVRI VXLWDEO\FRGHGSXOVHWRJHWWKHKLJKHUUDQJH:LQG
5)0LFURZDYH0LOOLPHWHU ZDYH V\VWHPV DQG SURÀOLQJPHDVXUHPHQWVDUHFDUULHGLQÀYHRUWKRJRQDO
VXEV\VWHPV  +LJK 3RZHU 5) DPSOLÀHUV 5) GLUHFWLRQVXVLQJÀYHLQGHSHQGHQWEHDPV
FRPPXQLFDWLRQ V\VWHPV $WPRVSKHULF 5DGDU
, Q V W U X P H Q W D W L R Q   / L Q H D U  $ F F H O H U D W R U V 


0LQLVWU\RI(OHFWURQLFV ,QIRUPDWLRQ7HFKQRORJ\ 0HLW<

LQVWUXPHQW XVHV D 7XQDEOH ,QIUDUHG /DVHU VRXUFH

ZKLFKDEVRUEVWKHJDVPROHFXOHLQVLGHD*DVFHOO
7KHGHWHFWLRQLVGRQHXVLQJ,5GHWHFWRU0(0VDQG
VLJQDOV DUH DFTXLUHG ZLWK KLJK VSHHG HOHFWURQLFV
XVLQJ:DYHOHQJWK0RGXODWLRQWHFKQLTXH

675DGDU,QVWDOODWLRQZRUNDWVLWHLVLQSURJUHVV

'HYHORSPHQWRI.D%DQG3RODULPHWULF'RSSOHU
5DGDUIRU&ORXG3URÀOLQJ
7KLVSURMHFWLVIXQGHGE\0LQLVWU\RI(DUWK6FLHQFHV
02(6 &ORXGVSOD\DFULWLFDOUROHLQHDUWK·VFOLPDWH
WKURXJKWKHUHÁHFWLRQDEVRUSWLRQDQGHPLVVLRQRI
UDGLDWLRQWKHYHUWLFDOWUDQVSRUWRIKHDWDQGPRLVWXUH
DQG WKH JHQHUDWLRQ RI SUHFLSLWDWLRQ DQG LWV
DVVRFLDWHGODWHQWKHDWUHOHDVHDQGHYDSRUDWLRQ7KH 7KHLQVWUXPHQWFDQEHXVHGWRGHWHFWPXOWLSOHWR[LF
SRRUUHSUHVHQWDWLRQRIFORXGSURFHVVHVFRQWLQXHV JDVHV VXFK DV $PPRQLD 0HWKDQH &DUERQ
WR EH RQH RI WKH PDMRU VRXUFHV RI XQFHUWDLQW\ LQ 0RQR[LGH 1R[ DQG 6R[ 2]RQH HWF IRU
QXPHULFDO VLPXODWLRQV RI FOLPDWH DQG ZHDWKHU ,Q 3ROOXWLRQPRQLWRULQJ
RUGHUWRDGHTXDWHO\XQGHUVWDQGWKHUROHRIFORXGV 'HYHORSPHQW RI +LJK 5HVROXWLRQ ,PDJLQJ
DQG LPSURYH WKHLU SDUDPHWHUL]DWLRQ LQ QXPHULFDO 6\VWHP XVLQJ 6SHFWUDO 'RPDLQ2SWLFDO
PRGHOIXQGDPHQWDOVWXGLHVLHSURFHVVVWXGLHVRQ &RKHUHQFH7RPRJUDSK\ 6'2&7
DOOVFDOHVLPSRUWDQWWRFORXGVIRUPDWLRQHYROXWLRQ
DQG GLVVLSDWLRQ DUH UHTXLUHG 7KHVH VWXGLHV DUH $QPVRXUFHEDVHGKLJKUHVROXWLRQLPDJLQJ
SRVVLEOH ZLWK WKH KHOS RI .D %DQG 3RODULPHWULF V\VWHP XVLQJ 6'2&7 LV GHYHORSHG 7KLV 2&7
'RSSOHU 5DGDU $OO WKH VXEV\VWHPV KDYH EHHQ WHFKQLTXHÀQGVDSSOLFDWLRQLQPDQ\ELRPHGLFDODQG
WHVWHG DQG WKH V\VWHP OHYHO LQWHJUDWLRQ LV EHLQJ QRQPHGLFDO DUHDV VXFK DV RSKWKDOPRORJ\
GRQH 5DGDU FRQVLVWV RI  P GLD &DVVHJUDLQ GHUPDWRORJ\ IRRG DQG DJUR LQGXVWU\ DQG
DQWHQQD PRXQWHG RQ D WUDLOHU DQG KDV VFDQQLQJ SDFNDJLQJHWF7KH6'2&7V\VWHPGHVLJQHGDQG
F D S D E L O L W \  L Q  D ] L P X W K  D Q G  H O H Y D W L R Q  I R U GHYHORSHG KDV EHHQ XVHG WR REWDLQ LPDJHV RI
KHPLVSKHULFDO FRYHUDJH RI FORXGV 6\VWHP KDV VDPSOHVOLNHFRYHUVOLSJODVVVOLGHIRDPVKHHWDQG
PDQ\VWDWHRIWKHDUWIHDWXUHV RQLRQFHOOV
'HVLJQ  'HYHORSPHQW RI 4XDQWXP &DVFDGH  09 0HGLFDO /LQDF ´6,''+$57+µ XQGHU WKH
/DVHU 4&/ DEVRUSWLRQEDVHGWR[LFFKHPLFDO QDWLRQDO-DL9LJ\DQPLVVLRQ
'HWHFWRUIRU+RPHODQG6HFXULW\
,QVWDOODWLRQ DQG &RPPLVVLRQLQJ RI  09 0HGLFDO
6$0((50XPEDLKDVGHYHORSHGD/DESURWRW\SH /LQDF DW $PUDYDWL &DQFHU )RXQGDWLRQ $&) 
WUDFH JDV VHQVRU ZKLFK FDQ GHWHFW WKH KDUPIXO $ P U D Y D W L  L V  X Q G H U  S U R J U H V V  D Q G  Z L O O  E H
JDVHVIURPWKHDWPRVSKHUHDWVXESSPOHYHO7KLV FRPPLVVLRQHGVRRQ


 $QQXDO5HSRUW

'HYHORSPHQW RI +LJK HQHUJ\ (OHFWURQ /LQHDU PRQLWRULQJDQGVDIHPDQDJHPHQWRIVWRUHGSDGG\

$FFHOHUDWRUIRUPHGLFDODSSOLFDWLRQV LQZDUHKRXVHV

6$0((5 KDV XQGHUWDNHQ WR GHYHORS WKH  0H9 $SSOLFDWLRQRI(0:DYH%DVHG7HFKQRORJ\IRU

OLQHDU DFFHOHUDWRU V\VWHP IRU LUUDGLDWLRQ RI 'LVLQIHFWLRQ RI *UDLQV 3XOVHV DQG 6HHGV IRU
0RO\EGHQXPWRFRQYHUWLWWR0RO\EGHQXP 6DIH6WRUDJH
IURP ZKLFK 7HFKQHWLXP  ZLOO EH H[WUDFWHG DQG
6$0((5 KDV LQLWLDWHG D SURMHFW 'HYHORSPHQW RI
XVHG IRU PHGLFDO GLDJQRVLV DQG LPDJLQJ
LQQRYDWLYHHOHFWURQLFVDQGHOHFWURPDJQHWLFEDVHG
DSSOLFDWLRQV ,10$6 ZLOO GHYHORS D SURFHGXUH IRU
GLVLQIHVWDWLRQV IRU VDIH PDQDJHPHQW RI JUDLQV
H[WUDFWLRQRIWKH7FIURPWKH0RO\DQGFDUU\
SXOVHVDQGVHHGV
RXWWKHTXDOLW\DVVXUDQFHFOLQLFDOWULDOVHWF
'HVLJQ DQG 'HYHORSPHQW RI 6ZLWFKHG EHDP
7KHSURMHFWLVEHLQJLPSOHPHQWHGLQWZRSKDVHV,Q
DUUD\DQWHQQDIRU*WHFKQRORJLHV
WKH ÀUVW SKDVH WKH SKRWRQ HQHUJ\ RI DERXW 09
DQG HOHFWURQ EHDP SRZHU RI DERXW N: ZLOO EH $Q LQGLJHQRXV GHYHORSPHQW RI VZLWFKHG EHDP
GHPRQVWUDWHG 7KLV ZLOO EH XVHG WR LUUDGLDWH WKH DQWHQQD DUUD\ DW PP ZDYH IUHTXHQFLHV LV EHLQJ
HQULFKHG PRO\EGHQXP  PDWHULDO DQG PHDVXUH GHYHORSHG E\ 6$0((5&(0 IRU QH[W JHQHUDWLRQ
WKHDFWXDODFWLYLW\REWDLQHG,QWKHVHFRQGSKDVHWKH PRELOHDSSOLFDWLRQV*7KHDQWHQQDLVFDSDEOHRI
09DQGN:HOHFWURQEHDPSRZHUOLQDFZLOOEH VZLWFKLQJ WKH EHDP LQ  SUHGHÀQHG DQJXODU
GHYHORSHGDQGGHPRQVWUDWHG SRVLWLRQV LQ D]LPXWK 7KLV FRQFHSW LPSURYHG WKH
VLJQDO WR 1RLVH UDWLR DQG KHQFH WKH FKDQQHO
7KHGHVLJQRIWKHVXEV\VWHPVIRUWKHÀUVWSKDVHLV
FDSDFLW\IRUWKHQH[WJHQHUDWLRQ*V\VWHPV7KH
FRPSOHWHG DQG SURFXUHPHQW IDEULFDWLRQ HWF LV LQ
EDQGZLGWKSURYLGHGE\WKHDQWHQQDLVZHOOVXLWHGIRU
SURJUHVV0DMRUGHVLJQZRUNVIRUWKHVHFRQGSKDVH
WKH KLJK GDWD UDWHV RI WKH RUGHU RI !*ESV DQ
VXEV\VWHPVOLNHUHVRQDQWFDYLW\HOHFWURQJXQHWFLV
LPSRUWDQWIHDWXUHRI*V\VWHPV
LQDGYDQFHGVWDJHRIHYDOXDWLRQ
0DJQHWR'LHOHFWULF 0'  VXEVWUDWHV IRU
,QGLJHQRXV 0DJQHWLF 5HVRQDQFH ,PDJLQJ
PLQLDWXUL]HGDQWHQQDDSSOLFDWLRQV
V\VWHP
0DJQHWRGLHOHFWULFVXEVWUDWHVZLWKFRQWURORYHUWKH
6$0((5 LV GHYHORSLQJ ORZ FRVW LQGLJHQRXV 05,
VSHFLÀF GLHOHFWULF DQG PDJQHWLF SURSHUWLHV DUH
V\VWHP IRU PHGLFDO GLDJQRVWLFV 7KLV LV DQ PXOWL
EHLQJ GHYHORSHG MRLQWO\ E\ 6$0((5 DQG &0HW
LQVWLWXWLRQDO SURMHFW ZLWK 6$0((5 EHLQJ QRGDO
7KHVH VXEVWUDWHV DUH D QRYHO VROXWLRQ WR DQWHQQD
DJHQF\IRULQWHJUDWLRQRIWKHV\VWHP7KHÀUVWOHYHO
PLQLDWXUL]DWLRQ HVSHFLDOO\ DW ORZ IUHTXHQFLHV 7KH
LQWHJUDWLRQRIWKHV\VWHPLVXQGHUSURJUHVV
DQWHQQDVDWORZIUHTXHQF\FDQEHPDGHFRQIRUPDO
6PDUWZDUHKRXVHVZLWK$SSOLFDWLRQRIIURQWLHU E\ H[SORLWLQJ WKH 0' VXEVWUDWH FRQÀJXUDWLRQV
( 0   ( O H F W U R Q L F V  E D V H G  7H F K Q R O R J \ 1RYHOVWUDWHJLHVZLOOEHIROORZHGLQFUHDWLQJDQ0'
6$)(7<  VXEVWUDWH WR PDLQWDLQ IUHTXHQF\ VWDELOLW\ DQG ORZ
ORVVFKDUDFWHULVWLFV
6$0((5KDVXQGHUWDNHQDSURMHFWRQ$SSOLFDWLRQRI
H O H F W U R Q L F V  D Q G  H O H F W U R P D J Q H W L F  E D V H G : EDQG WKUHH FKDQQHO &RKHUHQW 7UDQVPLWWHU
LQVWUXPHQWDWLRQ WHFKQRORJLHV IRU HIIHFWLYH 5HFHLYHUIRUDLUERUQH5$'$5


0LQLVWU\RI(OHFWURQLFV ,QIRUPDWLRQ7HFKQRORJ\ 0HLW<

6$0((5 LV FXUUHQWO\ GHYHORSLQJ DQG : EDQG ( I I H F W V  (   K D V  E H H Q  H V W D E O L V K H G  D W

FRKHUHQW7UDQVPLWWHU5HFHLYHUIRU$LUERUQH5$'$5 9LVDNKDSDWQDPIRUKLJKO\VSHFLDOL]HGVWDWHRIWKH
V\VWHPWREHXVHGIRUVWUDWHJLFDSSOLFDWLRQV D U W  ( 0 ,  ( 0 &  W H V W  I D F L O L W L H V  L Q F O X G L Q J
(OHFWURPDJQHWLF 3XOVH (03 8OWUD :LGH %DQG
8:%  7HVW V\VWHP DQG 3XOVH &XUUHQW ,QMHFWLRQ
3&,  VHW XS WR PHHW WKH UHTXLUHPHQWV DV SHU
,QWHUQDWLRQDO (0& 6WDQGDUGV WR FDWHU VWUDWHJLF
GHSDUWPHQWV
6RPHRIWKH0DMRUSURJUHVVPLOHVWRQHV&RPSOHWHG
DUH WKH JOREDO WHQGHULQJ SURFHVV DQG 3ODFLQJ RI
SXUFKDVHRUGHUVIRUSURFXUHPHQWRIVSHFLDOL]HGWHVW
IDFLOLWLHV YL] (03 3&, DQG 8:% 7HVW V\VWHPV
3URFXUHPHQW RI 5) VKLHOGHG 6HPL$QHFKRLF
&KDPEHU 0,/ (0,(0& 7HVW IDFLOLWLHV DV SHU 0,/
67')*DQG(VWDEOLVKPHQWRI'(00RGHOLQJ
DQG 6LPXODWLRQ ODERUDWRU\ ZLWK VWDWHRIDUW
:EDQG3RZHU$PSOLÀHUDQG0XOWLSOLHU00,& VRIWZDUHVDQGKLJKHQGFRPSXWDWLRQDOUHVRXUFHVLV
6$0((5 KDV LQLWLDWHG XQGHUSURJUHVV
GHVLJQ DQG GHYHORS &HQWUH RI +LJK 3RZHU 0LFURZDYH 7XEH DQG
PHQWRI:EDQG3RZHU &RPSRQHQW7HFKQRORJ\ &+07&7 6$0((5
$PSOLÀHU DQG : EDQG ,,7*XZDKDWL
$FWLYH 0XOWLSOLHU 00,&
&+07&7LVZRUNLQJLQWKHDUHDRIFRQYHQWLRQDOKLJK
XVLQJ WKH IRXQGU\ VHUYLFH RI 8QLWHG 0RQROLWKLF
SRZHU PLFURZDYH WXEHFRPSRQHQW DV ZHOO DV
6HPLFRQGXFWRU )UDQFH 7KH GHVLJQ KDV EHHQ
IXWXULVWLF WXEH VXFK DV KLJK SRZHU PP ZDYH DQG
FRPSOHWHGDQGVHQWIRUIDEULFDWLRQ
7+]VRXUFHV7KHXSFRPLQJFHQWUHDW,,7*XZDKDWL
$LUERUQH $QWHQQDV IRU 1H[W JHQHUDWLRQ $QWL FDPSXV KDV HVWDEOLVKHG GHVLJQ IDFLOLWLHV DQG
5DGLDWLRQ'DWD/LQN6\VWHP GHVLJQDQGKLJKSRZHUFLUFXODWRUDQGPDJQHWURQLV
7KH 'DWD /LQN 5) 7UDQVFHLYHU LV XVHG IRU LQSURJUHVV
&RPPXQLFDWLRQDSSOLFDWLRQRSHUDWLQJLQIXOOGXSOH[
PRGH,WKDVJRWWZRGLIIHUHQWXQLWVRQHÀWWHGLQVLGH
DLUERUQHODXQFKHUDQGRWKHURQDLUERUQHSODWIRUP
7KH XQLW ÀWWHG LQVLGH ODXQFKHU KDV WUDQVPLWWLQJ
DQWHQQDDQGUHFHLYLQJDQWHQQD$OVRWKHXQLWÀWWHG
LQVLGH WKH PLVVLOH KDV WUDQVPLWWLQJ DQWHQQD DQG
UHFHLYLQJDQWHQQD
1RUWK(DVW,QLWLDWLYHV
&HQWUHIRU(OHFWURPDJQHWLF(QYLURQPHQWDO
(IIHFWVDW9LVDNKDSDWQDP 0LFURZDYHKHDWLQJV\VWHPVIRUWKHDSSOLFDWLRQRI
GU\LQJ RI WHD SRZGHU DUH EHLQJ GHYHORSHG IRU
6$0((5&HQWUHIRU(OHFWURPDJQHWLF(QYLURQPHQWDO *XZDKDWL 8QLYHUVLW\ DQG 7H]SXU 8QLYHUVLW\ 7KH


 $QQXDO5HSRUW

V\VWHPFRPSULVHVRIDN:*+]PLFURZDYH 1HDU LQIUDUHG VSHFWURPHWHU EDVHG RQ OLQH VFDQ

VRXUFH ZLWK FRQYH\RULVHG DSSOLFDWRU ,QGLYLGXDO FDPHUDLVEHLQJGHYHORSHGIRUKLJKVSHHGVFDQUDWH
V\VWHPZLWKDSSOLFDWRUVWDELOL]HUDQGFKLOOHUXQLWZLOO LPDJHSURFHVVLQJIRUDJULFXOWXUDODQGIRRGSURGXFW
EHFRPPLVVLRQHG LQVSHFWLRQ
'HYHORSPHQWRI/LJKWQLQJ'HWHFWLRQ1HWZRUN 0LFURZDYH 7HFKQRORJ\ %DVHG 7HD SURFHVVLQJ
6$0((5KDVXQGHUWDNHQGHYHORSPHQWRI/LJKWQLQJ V\VWHPIRU1(6WDWHV
'HWHFWLRQ 1HWZRUN /'1  IRU LQVWDOODWLRQ LQ 1( 0HWDPDWHULDO 1HJDWLYH UHIUDFWLRQ  EDVHG UDGLR
UHJLRQLQFROODERUDWLRQZLWK7ULSXUD8QLYHUVLW\7KH IUHTXHQF\ )/$7 OHQV IRU PDJQHWLF UHVRQDQFH
/'1 FRPSULVHV RI /)9/) VHQVRU QRGHV DQG LPDJLQJ 05,
&HQWUDOLVHG 6HUYHU WR GHWHUPLQH WKH ORFDWLRQ
%XLOGLQJHQGHQG*7HVWEHG
LQWHQVLW\ DQG PRYHPHQW RI WKXQGHUVWRUPV LQ UHDO
WLPH7KLVFDQKHOSORFDWHOLJKWQLQJFDXVHGGDPDJH /RZ 6LGHOREH /HYHO 6HULHV)HG 0LFURVWULS $UUD\
WRUHVRXUFHVDQGLQIUDVWUXFWXUH $QWHQQDV

/LJKWQLQJLVDOZD\VDVVRFLDWHGZLWKVHYHUHZHDWKHU 'HVLJQ DQG (YDOXDWLRQ RI 0XOWL%DQG 0XWL

OLNH WKXQGHUVWRUPV WRUQDGRV KDLOVWRUPV HWF SRODUL]DWLRQ6KDUHG$SHUWXUH$QWHQQD 6$$
:HDWKHU UDGDUV DUH OHVV HIIHFWLYH LQ WUDFNLQJ DQG (VWDEOLVKPHQW2I0LO6WG(0&7HVW/DERUDWRU\
PRQLWRULQJRIVHYHUHZHDWKHUFRQGLWLRQVRYHUORQJHU
(0,(0& WHVWLQJ DQG FRQVXOWDQF\ VHUYLFHV WR
GLVWDQFHV  7KH /'1 LV DEOH WR WUDFN ORFDWLRQ
HOHFWURQLFLQGXVWU\
LQWHQVLW\ DQG PRYHPHQW RI VHYHUH ZHDWKHU
FRQGLWLRQV LQ UHDO WLPH ZKHUH UDGDUV DUH QRW $LUERUQH$QWHQQDVIRU4XLFN5HVSRQVH6XUIDFHWR
HIIHFWLYH $LU 456$0 'DWD/LQN6\VWHP

'HYHORSPHQW DQG ,QVWDOODWLRQ RI ,RQRVRQGH 6.DEDQG7UDFNLQJ$QWHQQD

5DGDUDW'LEUXJDUK8QLYHUVLW\ 53)$QWHQQDVIRUDLUERUQHDSSOLFDWLRQV
7KH,RQRVRQGHXVHV+)UDGDUWHFKQLTXHWRSUREH 5DGDUOHYHOSUREH
WKH ,RQRVSKHUH 7KLV V\VWHP UDGLDWHV SXOVHG 5) EDVHG SUR[LPLW\ VHQVRUV IRU DLUERUQH
HOHFWURPDJQHWLFUDGLDWLRQZLWKFDUULHUIUHTXHQF\LQ DSSOLFDWLRQV
WKHUDQJH²0+]WRZDUGVWKHVN\7KHUHFHLYHG
'HVLJQ DQG 'HYHORSPHQW RI ,5 /DVHU $EVRUSWLRQ
HFKR LV VXEMHFWHG WR WKH PHDVXUHPHQW RI
EDVHG FRPSDFW VHQVRU WR 'HWHFW 7R[LF &KHPLFDO
SDUDPHWHUV OLNH WKH DPSOLWXGH SKDVH 'RSSOHU
$JHQWVIRU,QWHJUDWLRQLQ(:$516\VWHP
IUHTXHQF\VKLIWDQGSRODUL]DWLRQ
0LG,52SWLFDOZDYHJXLGHGHYLFHIDEULFDWLRQ
6$0((5KDVGHYHORSHGDQGLQVWDOOHG,RQRVRQGHDW
'LEUXJDUK 8QLYHUVLW\ FDPSXV 7KH V\VWHP LV 'HYHORSPHQWRI)&6V\VWHPVYDULDQWV
XQGHUJRLQJÀHOGWULDOV
96XVKUXW 5RERWLF5DGLR6XUJHU\6\VWHPV 
6$0((5KDVDOVRXQGHUWDNHQIROORZLQJ
6HOI&RQWDLQHG;5D\%ORRG,UUDGLDWRU6\VWHPV
SURMHFWVGXULQJWKH\HDU
&(0,/$&FHUWLÀHG5DGDU$OWLPHWHU
'HYHORSPHQWRI&RQIRUPDO$QWHQQDV
/W*D$V PDWHULDO JURZWK XVLQJ 0ROHFXODU %HDP 'HYHORSPHQW RI /DVHU DEVRUSWLRQ EDVHG 1RQ
(SLWD[\V\VWHP 0%( IRU7+]DQWHQQDIDEULFDWLRQ ,QYDVLYHEUHDWK$QDO\VHUIRU+HDOWKFDUH$SSOLFDWLRQ


0LQLVWU\RI(OHFWURQLFV ,QIRUPDWLRQ7HFKQRORJ\ 0HLW<

&0(7·6/DERUDWRULHVDQGFRUHFRPSHWHQFH FKRLFHIRUWKHFRQVXPHUHOHFWURQLFVPDUNHWZLWKD
&0(7·V5 'DFWLYLWLHVKDYHEHHQLPSOHPHQWHGLQ SURGXFWLRQRIWKHRUGHURIELOOLRQVRIXQLWVSHU\HDU
WKUHHODERUDWRULHVDW3XQH+\GHUDEDGDQG7KULVVXU 'XULQJ WKH \HDU  +DIQLXP SURFHVV
7KHODERUDWRU\DW3XQHIXQFWLRQVDVKHDGTXDUWHUV WHFKQRORJ\GHPRQVWUDWHGWRTXDOLW\FRQWUROWHDPRI
DQGH[WHQGVFHQWUDOFRRUGLQDWLRQVXSSRUW(DFKRI 966&DQGDQ0R8VLJQHGZLWK966&IRUVXSSO\RI
WKHVHODERUDWRULHVKDVLWVRZQDUHDRIVSHFLDOL]DWLRQ  .J +I VSRQJH  .JV RI KDIQLXP VSRQJH
ZLWKUHTXLVLWHLQIUDVWUXFWXUHDQGH[SHUWLVH VKUHGGHG WR VPDOO SLHFHV IRU WKH (OHFWURQ %HDP
(% PHOWLQJUHÀQLQJNJPDWHULDOKDQGHGRYHUWR
966&0,'+$1,  ,QGLDQ &KHPLFDO &RXQFLO $ZDUG
/$% $UHD
IRU ([FHOOHQFH LQ &KHPLFDO 3ODQW 'HVLJQ DQG
3XQH ¾0DWHULDOVIRU(OHFWURQLF3DFNDJLQJ
(QJLQHHULQJSUHVHQWHGWR966&IRU(VWDEOLVKPHQW
 ¾0DWHULDOVIRU5HQHZDEOH(QHUJ\
RI +DIQLXP 3ODQW LQ DVVRFLDWLRQ ZLWK &0(7
 ¾1DQRPDWHULDOVDQGWKHLUFRPSRVLWHV
+\GHUDEDG
+\GHUDEDG¾&RPSRXQG6HPLFRQGXFWRUV
6LOLFRQ &DUELGH 6L&  6HPLLQVXODWLQJ 6LQJOH
 ¾5HIUDFWRU\0HWDOV$OOR\V5R+6
&U\VWDO  IRU +LJK 7HPSHUDWXUH +LJK 9ROWDJH
 ¾(:DVWH 5R+6
DQG +LJK )UHTXHQF\ (OHFWURQLF $SSOLFDWLRQV
7KULVVXU ¾0LFURZDYH'LHOHFWULFV0XOWLOD\HU
&0(7 +\GHUDEDG  ,Q YLHZ RI VWUDWHJLF DQG
 ¾&HUDPLFV$FWXDWRUVDQG6HQVRUV
FRPPHUFLDO XVHV RI 6L& LQ HOHFWURQLF LQGXVWU\ &
 ¾1DQRPDWHULDOVDQG7KLQ)LOPV0(7 +\GHUDEDG LQ FROODERUDWLRQ ZLWK '05/ 

663/ 'HOKL ZLWK IXQGLQJ IURP '5'2 KDV

 7HFKQLFDO DFWLYLWLHV  SURJUHVV GXULQJ XQGHUWDNHQ 6L& VLQJOH FU\VWDO JURZWK SURFHVV WR
 GHYHORS 6L& ZDIHUV UHTXLUHG IRU VXEVWUDWHV WR EH
'XULQJ WKH \HDU  WKH PDLQ WHFKQLFDO XVHGLQ*D1WHFKQRORJ\DW663/7KLVLV,QGLD VÀUVW
DFWLYLWLHVRI&0(7FRYHUHGWKHIROORZLQJ HYHU LQLWLDWLYH WR GHYHORS 6L& EDVHG HOHFWURQLF
GHYLFHV3URFHVVWHFKQRORJ\GHPRQVWUDWHGWRJURZ
¾ ,PSOHPHQWDWLRQSURMHFWVIURP0HLW<DQGYDULRXV
+DQG+6L&6LQJOH&U\VWDOV'XULQJWKH\HDUµ
JRYHUQPHQW IXQGLQJ DJHQFLHV OLNH '67 ,652 GLDPHWHU 6L& VLQJOH FU\VWDO JURZQ DW &0(7
%$5&%516'5'2HWF +\GHUDEDG ZDV VHQW WR 663/ '5'2  IRU IXUWKHU
¾ 7HFKQLFDOVHUYLFHV SURFHVVLQJ6L&SKDVH²,,SURMHFW0R8ZDVVLJQHG
¾ 0DWHULDOVFKDUDFWHUL]DWLRQVHUYLFHV
EHWZHHQ &0(7 DQG '05/ LQ -XQH   ZLWK D
SURMHFWRXWOD\RIQHDUO\CODNKV
3URJUHVVRI1RYHO2QJRLQJ3URMHFWVDW&0(7
5HFRYHU\ RI 3UHFLRXV 0HWDOV IURP (OHFWURQLF
'HYHORSPHQW RI /L,RQ %DWWHULHV $FWLYH :DVWH 3&%V &0(7 +\GHUDEDG   7KH
0DWHULDOV 6\QWKHVLV )DEULFDWLRQ DQG 7HVWLQJ RI UHF\FOLQJ RI ZDVWH 3&% VFUDSV SUHVHQWV ERWK
3URWRW\SH &HOOV &0(7 3XQH  /LWKLXP EDWWHULHV FKDOOHQJHVDQGRSSRUWXQLWLHVQRWRQO\WRWKHRULJLQDO
DUH FKDUDFWHUL]HG E\ KLJK VSHFLÀF HQHUJ\ KLJK HTXLSPHQW PDQXIDFWXUHUV 2(0V  EXW DOVR WR
HIÀFLHQF\ DQG ORQJ OLIH 7KHVH XQLTXH SURSHUWLHV UHF\FOHUV7KH3&%VFRQVWLWXWHWRDERXWRI
KDYHPDGHOLWKLXPEDWWHULHVWKHSRZHUVRXUFHVRI


 $QQXDO5HSRUW

WKH WRWDO HOHFWURQLF ZDVWH E\ ZHLJKW 7KH 3&% WDEOHLQFOXGLQJSUHFLRXVPHWDOVUDUHPHWDOVEDVH

FRQWDLQVPRVWRIWKHHOHPHQWVIRXQGLQWKHSHULRGLF PHWDOVDQGVRPHWR[LFHOHPHQWVVXFKDV&U 9, 3E
+J&G%U

3URFHVVÁRZGLDJUDPRIUHFRYHU\RISUHFLRXVPHWDOVIURPHOHFWURQLFZDVWH

,Q RUGHU WR GHYHORS D FRVWHIIHFWLYH HQYLURQPHQW WKH SURFHVVHV WHFKQRORJLFDO DQG HFRQRPLF
IULHQGO\ VROXWLRQ IRU HZDVWH UHF\FOLQJ WHFKQRORJ\ IHDVLELOLW\KDYHWREHDVFHUWDLQHG$VHFRQGSKDVH
0HLW< LQLWLDWHG YDULRXV 5 ' HIIRUWV 2QH VXFK RIWKHSURMHFWZDVVDQFWLRQHGIRUHVWDEOLVKPHQWRI
VXFFHVVIXO LQLWLDWLYH ZDV WR LPSOHPHQW WKH SURMHFW SLORW SODQW RSHUDWLRQV DQG GHPRQVWUDWLRQ RI WKH
´(QYLURQPHQWDOO\ 6RXQG 0HWKRGV IRU 5HFRYHU\ RI HIÀFLHQW SURFHVVHV IRU WKH UHFRYHU\ RI YDOXDEOH
0HWDOV IURP 3ULQWHG &LUFXLW %RDUGVµ MRLQWO\ E\ & PHWDOV DQG DOVR WR H[WHQG WKH IDFLOLWLHV IRU
0(7+\GHUDEDGDQG(SDULVDUD%DQJDORUH,QWKLV XQRUJDQL]HG VHFWRUV 'XULQJ WKH  DQ
SURMHFW ODERUDWRU\ VFDOH SURFHVV NQRZKRZ ZDV HOHFWURUHÀQLQJ V\VWHP ZDV GHVLJQHG DQG
GHYHORSHG IDEULFDWHGIRUFRSSHUH[WUDFWLRQDQGSURGXFHGa
.J FRSSHU IURP DQRGH EDUV DQG D /3* EDVHG
)ORZVKHHWVIRUWKHUHFRYHU\RIYDULRXVPHWDOVZHUH
V P H O W L Q J  V \ V W H P  I D E U L F D W H G  D Q G  E H L Q J
GHYHORSHG3ULRUWRWKHFRPPHUFLDOH[SORLWDWLRQRI
FRPPLVVLRQHG


0LQLVWU\RI(OHFWURQLFV ,QIRUPDWLRQ7HFKQRORJ\ 0HLW<

)LUVW *RYHUQPHQW RZQHG 5HVWULFWLRQ RI /RZ 7HPSHUDWXUH &RÀUHG &HUDPLF /7&& 
+D]DUGRXV6XEVWDQFHV 5R+6 WHVW/DERUDWRU\ 3DFNDJLQJ 7HFKQRORJ\ &0(7 3XQH  DQG
6HUYLFH WR ,QGXVWU\ &0(7 +\GHUDEDG  'HYHORSPHQW RI ,QGLJHQRXV /7&& 7DSHV &
5HVWULFWLRQ RI +D]DUGRXV 6XEVWDQFHV 5R+6  0(77KULVVXU 
LPSDFWV WKH HQWLUH HOHFWURQLFV LQGXVWU\ DQG PDQ\
7KH/RZ7HPSHUDWXUH&RÀUHG&HUDPLF /7&& LVD
HOHFWULFDO SURGXFWV DV ZHOO 5R+6 VSHFLÀHV
PXOWLOD\HU FLUFXLW WHFKQRORJ\ PDGH XS RI D JODVV
PD[LPXP OHYHOV IRU WKH IROORZLQJ VL[ UHVWULFWHG
FHUDPLF GLHOHFWULF DQG VLOYHU RU JROG EDVHG
PDWHULDOV/HDG 3E SSP0HUFXU\ +J 
FRQGXFWRUV)XUWKHUPRVWSDVVLYHFRPSRQHQWVRI
SSP&DGPLXP &G SSP+H[DYDOHQW
WKHFLUFXLWVFRQVLVWLQJRILQGXFWRUV / FDSDFLWRUV
&KURPLXP &U 9,    SSP 3RO\EURPLQDWHG
& DQG5HVLVWRUV 5 FDQEHLQWHJUDWHGLQWKHOD\HUV
%LSKHQ\OV 3%% SSPDQG3RO\EURPLQDWHG
DQG WKH GLHOHFWULF LV JRRG HQRXJK IRU EXLOGLQJ
'LSKHQ\O(WKHUV 3%'( SSP
PXOWLOD\HUPLFURZDYHFLUFXLWVXSWR*+]7RGD\
,QRUGHUWRWHVWWKHVDLGDERYHVL[HOHPHQWV&0(7 &0(7 SRVVHVVHV IXOOÁHGJHG /7&& IDEULFDWLRQ
KDVFUHDWHGDXQLTXH5R+6WHVWLQJIDFLOLW\ZLWKWKH ODERUDWRU\VHWXSWKURXJKPDMRUÀQDQFLDOVXSSRUW
ÀQDQFLDOVXSSRUWIURP0HLW<,WLV1$%/DFFUHGLWHG IURP 1DWLRQDO 3URJUDPPH RQ 6PDUW 0DWHULDOV
ODERUDWRU\ ZLWK FHUWLÀFDWH LQ WKH DUHD RI FKHPLFDO 1360 7KHIDFLOLW\LVKRXVHGLQDPRGHVWP
WHVWLQJ  VDPSOHV ZHUH DQDO\VHG IRU RI FODVV  FOHDQ URRP ,Q SDVW &0(7 KDV
5R+61RQ5R+6DQGDVLQWHUQDOVDPSOHVVHUYHG ZRUNHGFORVHO\ZLWKPRUHWKDQLQVWLWXWLRQDOXVHUV
FRPSDQLHVIRU5R+6FRPSOLDQFHWHVWLQJGXULQJ IURP UHVHDUFK ODERUDWRULHV DFDGHPLF LQVWLWXWLRQV
WKH DQGSULYDWHVHFWRUFRPSDQLHVDFURVVWKHFRXQWU\WR
GHYHORS YDULRXV PLFURZDYH FRPPXQLFDWLRQ
FLUFXLWV SDFNDJHV IRU 0(06 GHYLFHV WKLQ ÀOP
VHQVRUV LQWHJUDWHG JDV VHQVRU VXEVWUDWHV
PLFURÁXLGLFYDOYHVHWF


)URP/WR5 ,QWHJUDWHGJDVVHQVRUVXEVWUDWHZLWKKHDWHUDQGWHPSHUDWXUHVHQVRU
/7&&SDFNDJHIRU0(06GHYLFHVDQGPLFURFU\RFRROHUGHYHORSHGE\&0(7

'HYHORSPHQW WHVWLQJ DQG VXSSO\ RI /7&& EDVHG 7KHUPDO6HQVRU%DVHG0RQLWRULQJ6\VWHPIRU

LQGXFWLRQFRLOPDJQHWLFVHQVRUDUHLQSURJUHVV7KH WKH (DUO\ 'HWHFWLRQ DQG 6FUHHQLQJ RI %UHDVW
0DUN²6HQVRUVZHUHWHVWHGE\XVHUDJHQF\ %$5&  &DQFHU &0(77KULVVXU  %UHDVW&DQFHULVQRZ
IRUDSSOLFDWLRQDQGRWKHUSDUDPHWHUV &0(7KDV WKHPRVWFRPPRQFDQFHULQ,QGLDDQGDFFRXQWVIRU
WDNHQ XS WKLV 5 ' DFWLYLW\ DQG GHYHORSHG /7&& DSSUR[LPDWHO\  RI DOO FDQFHUV LQ ZRPHQ ,Q
JUHHQWDSHVXVLQJGRFWRUEODGHWHFKQLTXH ,QGLDDVWLJPDWRZDUGVUHJXODUVFUHHQLQJIRUFDQFHU


 $QQXDO5HSRUW

H[LVWV GXH WR IHDU DQG LJQRUDQFH 5HOLDQFH RQ WUDQVPLVVLRQGHYLFHVUHSURGXFLELOLW\UHSHDWDELOLW\

: H V W H U Q  J X L G H O L Q H V  H P S O R \ L Q J  U H J X O D U UREXVWQHVV HWF DUH LQ SURJUHVV IRU VXFFHVVIXO
PDPPRJUDSK\ LV LPSUDFWLFDO LQ ,QGLD GXH WR WKH FRPSOHWLRQRIWKHSURMHFW'XULQJWKH\HDU
ODUJHSRSXODWLRQRI\RXQJSDWLHQWVZLWKPRUHGHQVH QXPEHUVRIZHDUDEOHGHYLFHVZLWKGLIIHUHQWVL]HV
EUHDVWVDORQJZLWKWKHKLJKFRVWRIPDFKLQHVDQG ZHUH PDGH )LUVW SKDVH FOLQLFDO WULDOV ZHUH
WUDLQHG PDQSRZHU DQG VWDII UHTXLUHPHQWV FRPSOHWHGZLWKSDWLHQWVDQGYROXQWHHUV7KH
7KHUPRJUDSK\ LV D QRQLQYDVLYH VNLQ VXUIDFH UHVXOWVREWDLQHGXVLQJ&0(7GHYHORSHGZHDUDEOH
WHPSHUDWXUHPHDVXUHPHQWPHWKRGIRUVFUHHQLQJRI GHYLFHV DUH LQ OLQH ZLWK VWDQGDUG GLDJQRVWLF WRROV
EUHDVW FDQFHU LW LV HFRQRPLFDO IDVW DQG GR QRW QDPHO\0DPPRJUDSK\
LQÁLFWDQ\SDLQWRWKHZRPHQ
&ULVWREDOLWH +LJK SXUH 6LOLFRQ 2[LGH 
&0(7KDVGHYHORSHGDZHDUDEOHGHYLFHE\XVLQJ &ULVWREDOLWH LV D KLJK WHPSHUDWXUH FU\VWDOOLQH
KLJK VHQVLWLYLW\ WKHUPDO VHQVRUV IRU WKH HDUO\ SRO\PRUSK RI VLOLFD &ULVWREDOLWH LV XVHG DV
GHWHFWLRQ DQG VFUHHQLQJ RI EUHDVW FDQFHU  7KH UHLQIRUFHPHQWÀOOHULQWKHDGKHVLYHXVHGIRUERQGLQJ
LQLWLDOWULDOVZHUHFRQGXFWHGDQGWKHUHVXOWVDUHYHU\ (JODVVVWUDLQLVRODWLRQSDGVDQGFHUDPLFWLOHVWR
SURPLVLQJ  7KLV GHYLFH FDQ EH RSHUDWHG ZLWK VSDFH YHKLFOHV & 0(7 KDV GHYHORSHG D
PLQLPXPWUDLQLQJSRUWDEOHDQGORZFRVW7KLVLVD WHFKQRORJ\ IRU WKH SURGXFWLRQ RI VSDFH TXDOLÀHG
M R L Q W  S U R M H F W  E H W Z H H Q  &  0 ( 7  & H Q W U H  I R U SKDVH SXUH FULVWREDOLWH LQ SLORW SODQW VFDOH ,652
'HYHORSPHQW RI $GYDQFHG &RPSXWLQJ &'$&  VXFFHVVIXOO\XVHGFULVWREDOLWHVXSSOLHGE\&0(7LQ
DQG 0DODEDU &DQFHU &HQWUH 0&&  6RPH PRUH WKHLU 6SDFH FDSVXOH UHFRYHU\ H[SHULPHQWV ,652
5 '  Z R U N  R Q  G D W D  D F T X L V L W L R Q  D Q G  G D W D UHTXLUHV UHJXODU VXSSO\ RI FULVWREDOLWH IRU WKHLU
5HODXQFKDEOH 9HKLFOH 5/9  DSSOLFDWLRQV &0(7
KDVVRIDUVXSSOLHG.JVRIFULVWREDOLWHWR,652
7KH WHFKQRORJ\ LV QRZ UHDG\ IRU WUDQVIHU WR
LQWHUHVWHGLQGXVWULHVRQQRQH[FOXVLYHEDVLV
5HFKDUJHDEOH (PHUJHQF\ /DPS XVLQJ
*UDSKHQHEDVHG6XSHUFDSDFLWRUV8QGHU0HLW<
VSRQVRUHG SURMHFW ´'HYHORSPHQW RI *UDSKHQH
VXSHUFDSDFLWRUVIRUSRZHUHOHFWURQLFVµ&0(7KDV
GHYHORSHGJUDSKHQHEDVHGVXSHUFDSDFLWRUV$VD
VSLQ RII &0(7 GHVLJQHG DQG GHYHORSHG DQ
HPHUJHQF\ODPSXVLQJJUDSKHQHVXSHUFDSDFLWRUV
&0(7KDVÀOHGDQ,QGLDQSDWHQWDSSOLFDWLRQ 1R
'(/ IRUWKLVWHFKQRORJ\
7KH WHFKQRORJ\ LV QRZ UHDG\ IRU WUDQVIHU WR
LQWHUHVWHGLQGXVWULHVRQQRQH[FOXVLYH7KHVDOLHQW
IHDWXUHV RI WKH TXLFNO\ UHFKDUJHDEOH HPHUJHQF\
ODPSDUH

7KHZHDUDEOHGHYLFHGHYHORSHGE\&0(7IRU ¾ ,WFDQFKDUJHLQOHVVWKDQPLQXWHV
6FUHHQLQJRIEUHDVWFDQFHU ¾ ,WFDQJLYHSRZHUFRQWLQXRXVO\XSWRKRXU


0LQLVWU\RI(OHFWURQLFV ,QIRUPDWLRQ7HFKQRORJ\ 0HLW<

¾ ,W FDQ DOVR FKDUJH IURP UHQHZDEOH HQHUJ\ 0RUHWKDQRIWKHFRVWRIDQ\PLFURZDYHGHYLFH

VRXUFHV DFFRXQWVIRUWKHEDVHPLFURZDYHFLUFXLWERDUGDQG
WKHDYDLODELOLW\RIVXFKFLUFXLWERDUGVLQWKHFRXQWU\
¾ ,GHDO IRU UXUDO ,QGLD ZKHUH WKHUH LV QR UHJXODU
DUH JRLQJ WR PDNH SKHQRPHQDO FKDQJHV LQ WKH
SRZHUVXSSO\
RYHUDOOSHUIRUPDQFHRIPLFURZDYH3&%LQGXVWULHV
¾ 7KHODPSLVKDQG\OLJKWZHLJKWDQGFDQEHVROG ,QRUGHUWRSURGXFHHFRQRPLFDOO\YLDEOHPLFURZDYH
DWDIIRUGDEOHSULFH VXEVWUDWHV &0(7 KDV GHYHORSHG  D SDWHQWHG
60(&+ SURFHVV ZKLFK FRPSULVHV RI 6LJPD
0L[LQJ ([WUXVLRQ &DOHQGHULQJ IROORZHG E\ +RW
SUHVVLQJ  0LFURZDYH VXEVWUDWHV ZLWK GLHOHFWULF
FRQVWDQW YDOXHV  DQG  DUH  GHYHORSHG
LQGLJHQRXVO\IRUWKHÀUVWWLPHZKLFKDUHVXSHULRULQ
SURSHUWLHVFRPSDUHGWR LPSRUWHGFRXQWHUSDUWVLQ
WHUPVRIXOWUDORZORVVWDQJHQW WDQ  DW
*+]  DQG WHPSHUDWXUH VWDEOH SURSHUWLHV  IRU
RXWGRRUZLUHOHVVFRPPXQLFDWLRQDSSOLFDWLRQV&
0(7KDVDOUHDG\REWDLQHGRQH86SDWHQWDQGÀOHG
WZR PRUH SDWHQW DSSOLFDWLRQV  WR SURWHFW WKH
LQWHOOHFWXDO SURSHUW\ ULJKWV RI WKLV LQQRYDWLRQ 7KH
WHFKQRORJ\ LV QRZ UHDG\ IRU WUDQVIHU WR LQWHUHVWHG
LQGXVWULHVRQQRQH[FOXVLYHEDVLV

4XLFNO\UHFKDUJHDEOHHPHUJHQF\ODPS
8OWUDORZORVV0:VXEVWUDWHVGHYHORSHGDW
0LFURZDYH VXEVWUDWHV KDYLQJ GLHOHFWULF FRQVWDQW &0(7WKURXJK60(&+SURFHVV
YDOXHVDQG)OH[LEOHPLFURZDYHVXEVWUDWHV
DUH H[WHQVLYHO\ XVHG IRU YDULHW\ RI KLJK HQG
PLFURZDYHFLUFXLWDSSOLFDWLRQVVXFKDVKLJKSRZHU
VROLG VWDWH DPSOLÀHUV SDWFK DQWHQQDV PLVVLOH
JXLGDQFH PRELOH EDVH VWDWLRQV HWF &XUUHQWO\ WKH
UHTXLUHPHQWVRIKLJKIUHTXHQF\FLUFXLWERDUGVDUH
IXOO\ PHW WKURXJK LPSRUWV DQG ZRUOG RYHU RQO\
KDQGIXO RI LQGXVWULHV DUH PDQXIDFWXULQJ WKHVH
WHFKQRORJLFDOO\ DQG FRPPHUFLDOO\ LPSRUWDQW FODVV
RIPDWHULDOV %DQGSDVVÀOWHUIDEULFDWHGXVLQJ
LQGLJHQRXVO\GHYHORSHG0:VXEVWUDWHV


 $QQXDO5HSRUW

1DQR=LQF 2[LGH  IRU HOHFWURQLFV DQG FRQQHFWLYLW\DFURVVFDPSXVDQGZKHQYLVLWLQJRWKHU

HQKDQFHG FDWDO\WLF  DSSOLFDWLRQV  6HPL SLORW SDUWLFLSDWLQJ LQVWLWXWLRQV E\ VLPSO\ RSHQLQJ WKHLU
S U R G X F W L R Q  R I  Q D Q R  = Q 2   L V  U H D G \  I R U ODSWRS DQG ZRUNLQJ RQ ORFDO :L)L QHWZRUN
FRPPHUFLDOL]DWLRQ  7KH XQLTXH IHDWXUHV RI 1DQR HGXURDP3URMHFWLVIXQGHGE\0HLW<,Q,QGLD(51(7
=Q2SRZGHUVDUHJLYHQEHORZ LVSURYLGLQJIUHHVHUYLFHVDQGVXSSRUWIRUHQDEOLQJ
HGXURDP VHUYLFHV LQ LQVWLWXWHV 7KH SURMHFW ZDV
¾ $YHSDUWLFOHVL]H QP
IRUPDOO\ODXQFKHGLQ,QGLDLQ6HSW,QVWLWXWLRQV
¾ $YHUDJHVXUIDFHDUHD PJP OLNH,,7V ,,0VKDYHDOUHDG\KRRNHGRQWRHGXURDP
¾ (QKDQFHGFDWDO\WLFDFWLYLW\ ,W LV H[SHFWHG WKDW DERXW  LQVWLWXWLRQV LQ ,QGLD
ZRXOGEHRQHGXURDPQHWZRUNQH[W\HDU
7KHÀJXUHVRI3LORWSURGXFWLRQIDFLOLW\IRU1DQR=Q2
DW.JEDWFKOHYHODQG QDQR=Q2SRZGHU DQG ,3Y EDVHG )XWXUH QHWZRUNV +DQGVRQ 6NLOO
GHYLFHV  PDGH RXW RI LW IRU VWUDWHJLF DSSOLFDWLRQV 'HYHORSPHQW 3URJUDP $OO *RYHUQPHQW 
DUHVKRZQEHORZ7KHWHFKQRORJ\LVQRZUHDG\IRU 0LQLVWULHVDSDUWIURP,QVWLWXWLRQVQHHGWRPLJUDWHWR
WUDQVIHU WR LQWHUHVWHG LQGXVWULHV RQ QRQH[FOXVLYH ,3YE\'HFHPEHUDVSHUWKH'R7URDGPDS
EDVLV ZKLFKZLOOKHOS,QGLDJHWSUHSDUHGDQGVHFXUHLQWKH
QHZ 7HFKQRORJ\ RQ ZKLFK WKH IXWXUH ,QWHUQHW
(51(7
LQFOXGLQJ WKH 'LJLWDO ,QGLD SURJUDPV ZLOO UXQ
(51(7LVDQ$XWRQRPRXV6FLHQWLÀF6RFLHW\RI0HLW< *RYHUQPHQW LQVWLWXWLRQV PRVWO\ UXQ WKHLU RZQ ,7
LQWKHDUHDRIQHWZRUNLQJDQGSURYLGLQJFRQQHFWLYLW\ LQIUDVWUXFWXUHDQGUHTXLUHWKHVNLOOVHWVWRWUDQVIRUP
,QDGGLWLRQ(51(7KDVEHHQPHHWLQJWKHQHHGVRI ,QGLD LQWR DQ ,3Y HQDEOHG FRXQWU\ DQG NHHS WKH
DFDGHPLFDQGUHVHDUFKLQVWLWXWLRQVE\SURYLGLQJ,7 FRXQWU\RQWKHIRUHIURQWRIQHWZRUNWHFKQRORJLHV
FRQVXOWDQF\SURMHFWPDQDJHPHQWDQGWUDLQLQJ
7KH (51(7 LQIUDVWUXFWXUH KDV WKH GLVWLQFWLRQ RI
'RPDLQ5HJLVWUDWLRQ EHLQJ DFFHVVLEOH IURP DQ\ZKHUH RYHU WKH ,3Y
(51(7,QGLDKDVEHHQGHVLJQDWHGDVDQH[FOXVLYH SUHVHQW,QWHUQHWDQGSURYLGHOLYHKDQGVRQWUDLQLQJ
GRPDLQ UHJLVWUDU IRU UHJLVWHULQJ GRPDLQV XQGHU RQ,3YWKHIXWXUHWHFKQRORJ\RI,QWHUQHW7KLVKHOSV
LQ UHDFKLQJ WKH GRRU VWHSV RI WKH ,QVWLWXWLRQV IRU
֟֗᳒֞֏֞֒ֆ EHVLGHV HGXLQDFLQ DQG UHVLQ IRU WKH
SURYLGLQJ WUDLQLQJ LQ WKHLU ORFDWLRQV DSDUW IURP
HGXFDWLRQDQGUHVHDUFKVHFWRURIWKHFRXQWU\7KH
FODVVURRPV DYDLODEOH LQ (51(7 SUHPLVHV 0RUH
GRPDLQ UHJLVWUDWLRQ SURFHVV KDV EHHQ IXOO\
WKDQ  *RYHUQPHQW VWDII KDYH EHHQ WUDLQHG WLOO
DXWRPDWHGKDYLQJIDFLOLW\RIÀOOLQJRQOLQHUHJLVWUDWLRQ
GDWHLQWKLVKLJKWHFKQRORJ\DUHDXQGHUWKH0HLW<
IRUPV RQOLQH UHQHZDO RI GRPDLQ QDPH WKURXJK
IXQGHGSURJUDPLQ\HDU
RQOLQH SD\PHQW (51(7 KDV VWDUWHG UHJLVWHULQJ
GRPDLQIRU\HDUVDVZHOO <HWL  ,3Y RQO\ 5RRW 'RPDLQ 1DPH 6HUYLFH
7HVWEHG(51(7LVSDUWLFLSDWLQJLQWKHZRUOGZLGH
6HWWLQJ XS WKH HGXURDP VHUYLFHV LQ ,QGLD
HIIRUW RI H[SHULPHQWLQJ RQ D ,3Y RQO\ URRW '16
HGXURDP VWDQGV IRU HGXFDWLRQ URDPLQJ ,W LV WKH
VHUYHUV  URRW VHUYHUV KDYH EHHQ GHSOR\HG WKH
VHFXUHZRUOGZLGHURDPLQJVHUYLFHGHYHORSHGIRU
ZRUOGRYHUZLWKWKUHHSUHVHQWO\KRVWHGE\(51(7
LQWHUQDWLRQDOUHVHDUFKDQGHGXFDWLRQFRPPXQLW\,W
7KLVZLOOSURYLGHZLWKWKHH[SHULHQFHDQGNQRZOHGJH
DOORZV VWXGHQWV UHVHDUFKHUV DQG VWDII IURP
RI UXQQLQJ URRW '16 VHUYHU LQ WKH FRXQWU\ DV DQG
SDUWLFLSDWLQJ LQVWLWXWLRQV WR REWDLQ ,QWHUQHW
ZKHQWKHRSSRUWXQLW\LVDYDLODEOH


0LQLVWU\RI(OHFWURQLFV ,QIRUPDWLRQ7HFKQRORJ\ 0HLW<

,QWHUQHWRI7KLQJV  3LORW 3URMHFW RQ FRQQHFWLYLW\ XVLQJ 79

:KLWH6SDFH
 0HLW< LQ DVVRFLDWLRQ ZLWK (51(7 ,QGLD DQG
1$66&20 KDV HVWDEOLVKHG &HQWHU RI ([FHOOHQFH (51(7,QGLDKDGFUHDWHGDWHVWEHGWRFDUU\RXWD
&R( IRU,QWHUQHWRI7KLQJV ,R7 RQD3XEOLF3ULYDWH UHVHDUFKH[SHULPHQWRQHPHUJLQJWHFKQRORJLHVDQ
3DUWQHUVKLS 333 PRGHOWR´(QDEOH,R7HFRV\VWHP DWWHPSWWRXVHWKHDYDLODEOH:KLWH6SDFHV ´GHÀQHG
WKURXJK PD[LPL]LQJ LQGLJHQRXV VROXWLRQV DFURVV DV WKH IUHTXHQFLHV DOORFDWHG WR D EURDGFDVWLQJ
WKH,R7YDOXHFKDLQOHYHUDJLQJ,QGLD·VVWUHQJWKLQ,7 VHUYLFH EXW QRW XVHG ORFDOO\µ  IRU ORZ FRVW
WKURXJK FROODERUDWLYH HIIRUWV RI ,QGXVWU\ FRQQHFWLYLW\ LQ UHPRWH DUHDV 7KH UHVHDUFK
*RYHUQPHQW$FDGHPLD²6WDUWXSV(QWUHSUHQHXUVµ H[SHULPHQWSURSRVHVWRHIIHFWLYHO\XVHFKDQQHOVLQ
IRU ,QGLD·V FRQWULEXWLRQ WR JOREDO FRPSHWLWLYHQHVV 79EDQGIRULQWHUQHWFRQQHFWLYLW\ZKLOHFRQWLQXLQJWR
DQG ZHOO EHLQJ 7KH WRWDO RXWOD\ RI WKH SURMHFW LV DOORZ79WUDQVPLVVLRQXQKDPSHUHG(51(7WHVWHG
C/DNKVZLWK0HLW<FRQWULEXWLRQRIC WKH FRQQHFWLYLW\ VXFFHVVIXOO\ IURP .P WR  .P
ODNKIRU\HDUV7KH&R(IRU,R7ZDVODXQFKHGE\ UDQJH DQG IRXQG WKDW LPSOHPHQWDWLRQ RI 79 ZKLWH
+RQ·EOH3ULPH0LQLVWHULQ-XO\DQGWKH&HQWUH VSDFHV LV VLPSOH VXVWDLQDEOH  DSSURSULDWH WR
ZDVLQDXJXUDWHGE\+RQ·EOH0LQLVWHURI(OHFWURQLFVDQG HVWDEOLVKH[WHQGWKH,QWHUQHWFRQQHFWLYLW\WRUHPRWH
,QIRUPDWLRQ7HFKQRORJ\LQ-XO\ UXUDODUHDV(51(7SDUWLFLSDWHGLQFUHDWLRQRIWKH
:KLWH3DSHURQ79ZKLWHVSDFHWHFKQRORJ\
7KH&R(RYHUDSHULRGRIWLPHDQGWKURXJK,R7ZLOO
HQDEOH ,QGLD WR HPHUJH DV D ´&RQVXPSWLRQ  :L)L&DPSXV1HWZRUNLQÀYH8QLYHUVLWLHV
&UHDWLRQ(FRQRP\µDQGDFWDVDQHQDEOHUFDWDO\VW
6HWWLQJXS:L)LHQDEOHG&DPSXV1HWZRUNDW
IRU,R7HFRV\VWHPVXSSRUWLQJSROLF\DQGUHJXODWLRQ
$OODKDEDG 8QLYHUVLW\ $OODKDEDG (51(7 ,QGLD
GHYHORSPHQW UHVLGHQW FRPSHWHQF\ PRQLWRU WKH
KDV VHW XS :L)L HQDEOHG FDPSXV QHWZRUN DW
,35 JHQHUDWHG LQ WKH V\VWHP DQG VXSSRUW RWKHU
8QLYHUVLW\RI$OODKDEDG$OODKDEDG837KHSURMHFW
LQFXEDWRUV LQ WKH FRXQWU\ ZLWK SURJUDP VXSSRUW
LV D SRZHUIXO FRPELQDWLRQ RI ZLUHG  ZLUHOHVV
7KH&R(ZLOOFUHDWHDQLQQRYDWLRQSODWIRUPIRUVWDUW
QHWZRUN WHFKQRORJLHV HQDEOH ÁH[LELOLW\ UHVLOLHQF\
XSVHQWUHSUHQHXUVHQWHUSULVHVLQWKHVSDFHRI,R7
HDVHRIDFFHVVWRLQIRUPDWLRQGDWD VHUYLFHVE\
ZLWK¶'HPRFUDWLVDWLRQRI,QQRYDWLRQ·7KH&R(ZLOO
DQ\ :L)L HQDEOHG GHYLFHV DFURVV WKH FDPSXV ,W
HQHUJLVH UHVHDUFK PLQGVHW DQG UHGXFH FRVW LQ
H Q D E O H V  K L J K  V S H H G  Z L U H O H V V  D F F H V V  W R
UHVHDUFKDQGGHYHORSPHQWDQGFDQKHOSSURPRWH
,QWHUQHW,QWUDQHWUHVRXUFHVWRFDPSXVVWDIIIDFXOW\
LQGLJHQL]DWLRQ
WHDFKHUVVWXGHQWVYLVLWRUVRQDQ\WLPHDQ\ZKHUH
7KH SK\VLFDO ODERUDWRU\ LQIUDVWUXFWXUH RI WKH ÀUVW EDVLV
&HQWUH RI ([FHOOHQFH DW %DQJDORUH LV DOUHDG\
$XJPHQWDWLRQ RI  :L)L HQDEOHG &DPSXV
RSHUDWLRQDO7KH&HQWUHKDVGHÀQHGJXLGHOLQHVIRU
1HWZRUN DW 6DYLWULEDL 3KXOH 3XQH 8QLYHUVLW\
HQUROOLQJ RI 6WDUWXSV  6WDUWXSV KDYH EHHQ
6338  3XQH (51(7 ,QGLD KDV VHW XS :L)L
VHOHFWHGIRULQFXEDWLRQ&R(IRU,R7LVIRFXVLQJRQ
IDFLOLW\LQWKHEXLOGLQJGHSDUWPHQWVKRVWHOVZKLFK
$JULFXOWXUH:DWHU+HDOWK7UDQVSRUWDWLRQ6HFXULW\
ZHUHQRWFRQQHFWHGRUZHUHQRW:L)LHQDEOHGDUHDV
 6DIHW\ DQG (QHUJ\ DV YHUWLFDO VHJPHQWV
DQGLQWHJUDWHGZLWKWKHH[LVWLQJ&DPSXVQHWZRUN
*RYHUQPHQWRI.DUQDWDNDKDVMRLQHGWKHLQLWLDWLYHDV
3URMHFW ,PSOHPHQWDWLRQ LV FRPSOHWHG PDGH
D6WDWHSDUWQHUWKURXJKJUDQWRIVSDFHDVZHOODV
RSHUDWLRQDODQGLQXVHE\WKH8VHUVRI63387KH
SURJUDPH[HFXWLRQVXSSRUWLQWKH6WDWH
$XJPHQWDWLRQ RI :L)L HQDEOHG FDPSXV


 $QQXDO5HSRUW

QHWZRUN DW 6338 KDV LPSURYHG WKH :L)L VPDUWYLUWXDOFODVVURRPIDFLOLW\LQVFKRROVSOXV

FRYHUDJHLQWKHFDPSXV ',(7VVSUHDGDFURVVVWDWHVRIWKHFRXQWU\LH
+LPDFKDO *XMDUDW 5DMDVWKDQ 7ULSXUD +DU\DQD
6HWWLQJXS:L)LHQDEOHG&DPSXV1HWZRUNDW
$QGKUD3UDGHVKDQG7DPLO1DGXZLWKWKHIRFXVWR
2VPDQLD 8QLYHUVLW\ +\GHUDEDG 8WNDO
LPSURYHWKHTXDOLW\RIHGXFDWLRQWRVWXGHQWVIURP
8QLYHUVLW\%KXEDQHVZDU 1RUWK(DVWHUQ+LOO
UHPRWH UXUDO SDUW RI WKH FRXQWU\ 7KH IDFLOLW\ DOVR
8QLYHUVLW\ 6KLOORQJ 7KH :L)L SURMHFW LV EHLQJ
RIIHUVRIÁLQHDFFHVVRIFODVVURRPVHVVLRQVURXQGHU
LPSOHPHQWHGDW2VPDQLD1(+8 8WNDO8QLYHUVLW\
WKHFORFNIRUOHDUQLQJFROODERUDWLRQEHWZHHQDOOWKH
$SSUR[LPDWH  EXLOGLQJV ZLOO EH FRYHUHG XQGHU
VWDNHKROGHUV 7KH EDVLF DLP RI WKH SURMHFW LV WR
WKH:L)LSURMHFWDW28DQGVLPLODUO\1RVLQ8WNDO
FUHDWH D WHFKQRORJ\ HQKDQFHG FODVVURRPV WKDW
  1RV LQ 1(+8 E\ &RQQHFWLQJ DOO WKHVH
IRVWHU RSSRUWXQLWLHV IRU WHDFKLQJ DQG OHDUQLQJ E\
'HSDUWPHQWV)DFXOW\%XLOGLQJV  +RVWHOV VSUHDG
LQWHJUDWLQJ OHDUQLQJ WHFKQRORJ\ VXFK DV
DFURVV WKH FDPSXV RYHU D KLJK VSHHG )LEHU
FRPSXWHUV HOHFWURQLF ZKLWH ERDUGV SURMHFWRUV
QHWZRUN 7KH SURMHFW HQDEOHV :L)L ,QWHUQHW 
VSHFLDOL]HG VRIWZDUH LQWHUDFWLYH DXGLRYLGHR
,QWUDQHW DFFHVV DFURVV WKH FDPSXV RQ DQ\WLPH
V\VWHPVHWF
DQ\ZKHUHEDVLV
&DPSXV1HWZRUNIRU1DWLRQDO,QVWLWXWHRI)RRG
7HFKQRORJ\ (QWUHSUHQHXUVKLS  0DQDJHPHQW
1 , ) 7 ( 0   ( 5 1 ( 7  , Q G L D  K D G  V L J Q H G  D
0HPRUDQGXP RI 8QGHUVWDQGLQJ 028  ZLWK
1,)7(0 (51(7,QGLDIRUVHWWLQJXSWKH1HWZRUN
DQG RWKHU ,7 ,QIUDVWUXFWXUH DW 1,)7(0 FDPSXV
8QGHUWKLV0R8DVWDWHRIWKHDUWKLJKVSHHGÀEHU
RSWLF EDVHG &DPSXV 1HWZRUN FRQQHFWLQJ
EXLOGLQJVEORFNVVSUHDGDFURVVWKHFDPSXVZLOOEH
VHWXS%DFNERQHRIWKHQHWZRUNZRXOGEHRQKLJK
VSHHGÀEHURSWLF7KHQHWZRUNDUFKLWHFWXUHLVEDVHG
RQ 6WDU 7RSRORJ\ ZLWK WZR &RUH ORFDWLRQV HDFK (/HDUQLQJ ,&7 &HQWHUV LQ  VFKRROV RI
FRQQHFWLQJ WR =RQDO ORFDWLRQV ZLWK UHGXQGDQW 6ULNDNXODP $QGKUD 3UDGHVK  (51(7 ,QGLD
DUFKLWHFWXUH RYHU  *LJDELW VLQJOH PRGH ÀEHU VLJQHGD0HPRUDQGXPRI8QGHUVWDQGLQJ 028 LQ
RSWLFEDFNERQH -DQXDU\  ZLWK 'HSDUWPHQW RI 6FKRRO
(GXFDWLRQ $QGKUD 3UDGHVK *RYHUQPHQW WR
 60$57 &ODVVURRPV ,&7 OHDUQLQJ HVWDEOLVKH/HDUQLQJ,QIRUPDWLRQ &RPPXQLFDWLRQ
7UDLQLQJHWF 7HFKQRORJLHV ,&7  ,QIUDVWUXFWXUH LQ  6FKRROV
6HWXS 6PDUW 9LUWXDO &ODVVURRP )DFLOLWLHV ORFDWHGLQUXUDOWULEDODUHDVRI6ULNDNXODP$QGKUD
(51(7 LV LPSOHPHQWLQJ D SURMHFW WLWOHG ´(QDEOLQJ 3UDGHVK 7KH ,&7 LQIUDVWUXFWXUH FRQVLVWV RI
6FKRROV ZLWK 6PDUW 9LUWXDO &ODVV 5RRP )DFLOLW\ ² VWDQGDORQH GHVNWRS 3&·V ZLWK VSHDNHU ZHEFDP
3KDVH,µZLWKDWRWDOSURMHFWRXWOD\RIC&U PLFURSKRQH ODVHU SULQWHU FXP VFDQQHU 3URMHFWRU
XQGHUWKH'LJLWDO,QGLDLQLWLDWLYHODXQFKHGE\0HLW< 836/$1 (OHFWULFDOFDEOLQJ&RPSXWHUVRIWZDUH
7KHSURMHFWLVDLPHGDWHQDEOLQJDYLUWXDOFODVVURRP 26 $QWLYLUXV 06 2IÀFH  &RPSXWHU )XUQLWXUH
WHDFKLQJ WKURXJK HVWDEOLVKPHQW RI ,&7 HQDEOHG (GXFDWLRQDO&RQWHQWVDQGLQWHUQHWFRQQHFWLYLW\


0LQLVWU\RI(OHFWURQLFV ,QIRUPDWLRQ7HFKQRORJ\ 0HLW<

7KH ,&7 &HQWHUV DUH FRPPLVVLRQHG DQG QRZ /DNVKDGZHHS ,VODQGV ,WV 96$7 QHWZRUN LV EHLQJ
IXQFWLRQDODQGDUHEHLQJXVHGE\VFKRROVWXGHQWV XSJUDGHG WR WKH ODWHVW DQG VWDWHRIWKHDUW
DQGWHDFKHUVIRUFRPSXWHUOLWHUDF\DQGHQKDQFLQJ WHFKQRORJ\ (51(7 96$7 QHWZRUN LV FDSDEOH WR
HGXFDWLRQ WKURXJK XVH RI ,&7 ODEV (51(7 ,QGLD SURYLGH 96$7 W\SHV UDQJLQJ IURP .ESV WR
DOVR FRQGXFWHG EDVLF OHYHO WUDLQLQJ IRU PRUH WKDQ 0ESVGDWDUDWHVWRWKHXVHUV
QRVRIWHDFKHUVRQ,&7
(51(7 LV SUHVHQWO\ HVWDEOLVKLQJ L  96$7 EDVHG
3URMHFW,&76FKHPHLQWKHVFKRROVXQGHU'R( ,QWHUQHW FRQQHFWLYLW\ DW  LQVWLWXWHV VFKRROV
87 RI 'DPDQ  'LX DQG 'R( 87 RI 'DGUD ORFDWHGLQUHPRWHSDUWVRI1RUWK(DVWVWDWHVRIWKH
1DJDU+DYHOL(51(7,QGLDKDVVLJQHGDVHSDUDWH FRXQWU\XQGHU0HLW<SURMHFWDQG LL DKLJKFDSDFLW\
0HPRUDQGXP RI 8QGHUVWDQGLQJ 0R8  ZLWK 6&3&96$7OLQNDW.DYDUDWWLWKH87RI/DNVKDGZHHS
'LUHFWRUDWH RI (GXFDWLRQ 'DPDQ  'LX ''  DQG ,VODQGVXQGHU1.1SURMHFW7KHXSJUDGDWLRQRIWKH
'LUHFWRUDWH RI (GXFDWLRQ 'DGUD 1DJDU +DYHOL 96$7QHWZRUNDQGHVWDEOLVKPHQWRIWKHOLQNVZLOOEH
'1+ WRVHWXSVWDWHRIWKHDUW,&7LQIUDVWUXFWXUHLQ FRPSOHWHGE\HQGRIWKLV\HDU
WKHLU VFKRROV 8QGHU WKH 0R8  ,&7 ODEV  LQ
 6HWWLQJ XS RI 'LJLWDO $UFKLYDO IDFLOLW\ IRU
'1+   LQ ''  ZLOO EH VHWXS LQ ERWK WKH 87V
RXWFRPHVRIWKHYDULRXVODQJXDJHV7HFKQRORJ\
0 D W H U L D O V  K D Y H  E H H Q  G H O L Y H U H G  L Q  D O O   
SURMHFWVDORQJZLWKGHSHQGHQFLHV
/DEVVFKRROV XQGHU 'R( '1+ DQG LQ 
/DEVVFKRROVXQGHU'R(''LQFOXGLQJPDQSRZHU (51(7,QGLD KDVVXFFHVVIXOO\LPSOHPHQWHG WKH
7RWDO  /DEV DUH LQVWDOOHG  IXQFWLRQDO DQG DERYHVDLGSURMHFWRI7',/0HLW<(51(7,QGLDKDV
UHPDLQLQJLVXQGHUSURFHVV GHYHORSHG D ZHE EDVHG SRUWDO ZKLFK HQDEOHV
DUFKLYLQJ VWRULQJ PRGLI\LQJ XSORDGLQJ DQG
,6($ 7UDLQLQJ (51(7 ,QGLD XQGHU ,QIRUPDWLRQ
UHWULHYLQJ RI 2XWFRPHV RI WKH YDULRXV /DQJXDJH
6HFXULW\(GXFDWLRQ DQG$ZDUHQHVV ,6($ 3URMHFW
7HFKQRORJ\ SURMHFWV LQFOXGLQJ H[HFXWDEOH ÀOHV
3KDVH,,KDVEHHQFRQGXFWLQJWUDLQLQJRQVHFXULW\
VRXUFH FRGH YDULRXV IXQFWLRQDO PRGXOHV WRROV
DZDUHQHVV WR JRYHUQPHQW RIÀFLDOV (51(7 EHLQJ
GRFXPHQWDWLRQDQGUHVHDUFKSDSHUVDORQJZLWKLWV
RQHRIWKHLPSOHPHQWLQJDJHQF\WKUHHGD\EDVLFV
GHSHQGHQFLHVGHYHORSHGE\YDULRXVRUJDQL]DWLRQV
WUDLQLQJSURJUDPVZDVFRQGXFWHGDW%DQJDORUHDQG
XQGHUIXQGLQJIURP*RYWRI,QGLD7KLVSRUWDOKDV
&KHQQDL UHJLRQV 7RWDO RI  *RYHUQPHQW RIÀFLDOV
EHHQGHYHORSHGWRVHFXUHO\GLVWULEXWHWKHFRGHDV
S D U W L F L S D W H G  I U R P  Y D U L R X V  J R Y H U Q P H Q W
DQG ZKHQ UHTXLUHG LQ IXWXUH WR UHVHDUFKHUV IRU
RUJDQL]DWLRQV LH (/&27 713/ $5&, ,*&$5
IXUWKHURUQHZUHVHDUFKDORQJZLWKGHSHQGHQFLHV
1,27 &KHQQDL 0XQLFLSDO RIÀFH 7DPLOQDGX
0RGXOHV RI WKHVH UHVRXUFHV FDQ EH XWLOL]HG IRU
3XGXFKHUU\ (OHFWULFLW\ %RDUG 673, 1,& .37&/
7HFKQRORJ\WUDQVIHU8SORDGLQJRIFRQWHQWVFDQEH
3RZHU*ULG%DQJDORUH(OHFWULFLW\ERDUG &35,
GRQH WKURXJK GXDO DXWKHQWLFDWLRQ ² XVHUQDPH
 &RQQHFWLQJ WKH 8QFRQQHFWHG 8VLQJ SDVVZRUGDQGGLJLWDOVLJQDWXUHDXWKHQWLFDWLRQ
96$7V
7HUUHVWULDO2SHUDWLRQ
(51(7,QGLDSURYLGHV96$7FRQQHFWLYLW\LQ&%DQG
8SJUDGDWLRQ RI (51(7 'HOKL 3R3 LQFOXGLQJ
XVLQJ,16$7VDWHOOLWHIRU,QWHUQHW ,QWUDQHWDFFHVVLQ
FRPPLVVLRQLQJ DQG LQVWDOODWLRQ RI KLJK HQG
UHPRWHDUHDVDOORYHUWKHFRXQWU\LQFOXGLQJ1RUWK
)LUHZDOOVDQG,QWUXVLRQ'HWHFWLRQ3URWHFWLRQ6\VWHP
(DVWHUQ UHJLRQ $QGDPDQ  1LFREDU 
,36 


 $QQXDO5HSRUW

¾ 8VLQJ WKH XSJUDGHG ,QIUDVWUXFWXUH (51(7 LV &RXQWULHV(XURSHDQG86$WKURXJK7(,1

DEOH WR SURYLGH VDIH DQG VHFXUH ,QWHUQHW
(51(7LVFRQQHFWHGWR7(,1WKURXJK1.1DQGLQ
VHUYLFHVWRLWVXVHUV
WXUQ (GXFDWLRQ DQG 5HVHDUFK FRPPXQLW\ RI WKH
¾ :LWK WKH XSJUDGDWLRQ (51(7 LV RIIHULQJ FRXQWU\ KDV VHDPOHVV DFFHVV WR 6RXWK $VLDQ
QHWZRUNVHFXULW\DVDVHUYLFHWRLWVH[LVWLQJDQG &RXQWULHV(XURSHDQG86$
QHZXVHUV
H*RYHUQDQFH6ROXWLRQ1H*'
9DULRXV$FWLYLWLHVXQGHURSHUDWLRQV
7R PHHW HYHU JURZLQJ GHPDQG RI H*RYHUQDQFH
¾ 8SJUDGDWLRQRIWKH03/6XVHUOLQNV DFURVVWKHQDWLRQ1DWLRQDOH*RYHUQDQFH'LYLVLRQ
ZDVHVWDEOLVKHGDVDPDOJDPDWLRQRIH[SHUWVIURP
(51(7,QGLDKDVEHHQDEOHWRLQFUHDVHWKH,QWHUQHW
WKH3ULYDWHVHFWRUDQGWKH*RYHUQPHQW1H*'KDV
EDQGZLGWK IRU HDFK OLQN WR WKULFH RI LWV H[LVWLQJ
EHHQSOD\LQJDSLYRWDOUROHLQGLVFKDUJLQJWKHNH\
EDQGZLGWKVZLWKRXWDFWXDOO\LQFUHDVLQJWKHFRVWIRU
WDVNV LQFOXGLQJ 3URJUDPPH 0DQDJHPHQW DQG
WKHOLQNDQGIDOOLQJLQRIUHYHQXHVIRUWKHOLQNV
7HFKQLFDO 6XSSRUW RI YDULRXV FRPSRQHQWV RI WKH
¾ &RQQHFWLYLW\RI(51(7·VXVHUVWR6RXWK$VLDQ 'LJLWDO,QGLD3URJUDPPH

6RPH RI WKH PDMRU DFWLYLWLHV RI 1H*' LQFOXGH 0LVVLRQ 0RGHH*RYHUQDQFH 3URMHFWV WR PDNH
PRQLWRULQJ FRRUGLQDWLRQRIWKHHQWLUH'LJLWDO,QGLD WKHP6WDWHRIWKHDUWDUFKLWHFWXUHGHYHORSPHQWRI
3URJUDPPH WHFKQLFDO DSSUDLVDO DVVLVWDQFH WR 6WDQGDUGV 3ROLFLHV DQG *XLGHOLQHV UHODWHG WR H
0HLW<DQGRWKHU&HQWUDO0LQLVWULHV'HSDUWPHQWVRQ *RYHUQDQFH7HFKQLFDODSSUDLVDODQGIRUPXODWLRQRI
H*RYHUQDQFH 3URMHFWV 1H*' KDV VLJQLÀFDQWO\ DUFKLWHFWXUH GHVLJQ IRU VHYHUDO H*RYHUQDQFH
FRQWULEXWHG LQ WKH UHYDPSLQJ RI VHYHUDO H[LVWLQJ SURMHFWVFRQVXOWDWLRQDQGFRRUGLQDWLRQZLWK$SH[


0LQLVWU\RI(OHFWURQLFV ,QIRUPDWLRQ7HFKQRORJ\ 0HLW<

&RPPLWWHH DQG 0LVVLRQ /HDGHUV WR UHYLHZ WKH IDFLOLWDWHG HOHFWURQLF GHOLYHU\ RI VHUYLFHV WR WKH
SURJUHVVRI'LJLWDO,QGLDDQGSURYLGHDGYLVRU\DQG *RYHUQPHQW ** %XVLQHVV *% &LWL]HQ *& 
D V V L V W D Q F H  R Q  L V V X H V  W R  H [ S H G L W H  W K H DQG*RYHUQPHQW(PSOR\HH *( 
LPSOHPHQWDWLRQRI'LJLWDO,QGLD6HYHUDOFRQVXOWDWLYH
1,& WKURXJK LWV ,&7 1HWZRUN 1,&1(7 KDV
ZRUNVKRSVRQ&ORXG0RELOHRSHQ$3,HWFKDYH
L Q V W L W X W L R Q D O  O L Q N D J H V  Z L W K  D O O  0 L Q L V W U L H V 
DOVR EHHQ FRQGXFWHG E\ 1H*' ZLWK ,QGXVWU\ WR
'HSDUWPHQWV RI  &HQWUDO *RYHUQPHQW  6WDWH
DUULYH DW WKH LQQRYDWLYH VROXWLRQ RI YDULRXV
*RYHUQPHQWV8QLRQ 7HUULWRULHV DQG DERXW 
FRPSRQHQWVRI'LJLWDO,QGLD1H*'LVLQVWUXPHQWDO
'LVWULFW DGPLQLVWUDWLRQV RI ,QGLD 1,& KDV EHHQ
LQ FUHDWLQJ FRQFHSW QRWHV RQ ,QWHUQDWLRQDO ,&7
LQVWUXPHQWDO LQ VWHHULQJ H*RYHUQPHQWH
FRRSHUDWLRQ VWDWXV UHSRUW WR 302 DQG VHYHUDO
* R Y H U Q D Q F H  D S S O L F D W L R Q V  L Q  J R Y H U Q P H Q W
DFWLYLWLHVUHODWHGWR'LJLWDO,QGLD
PLQLVWULHVGHSDUWPHQWV DW WKH &HQWUH 6WDWHV
1H*' LV D FHQWUDO DJHQF\ IRU LPSOHPHQWDWLRQ RI 'LVWULFWV DQG %ORFNV IDFLOLWDWLQJ LPSURYHPHQW LQ
&DSDFLW\ EXLOGLQJ VFKHPH ,W KDV DOVR EHHQ JRYHUQPHQW VHUYLFHV ZLGHU WUDQVSDUHQF\
VLJQLÀFDQWO\ FRQWULEXWLQJ WRZDUGV VSUHDGLQJ WKH S U R P R W L Q J  G H F H Q W U D O L ] H G  S O D Q Q L Q J  D Q G
DZDUHQHVV DERXW WKH 'LJLWDO ,QGLD 3URJUDPPH PDQDJHPHQW UHVXOWLQJ LQ EHWWHU HIÀFLHQF\ DQG
WKURXJK 6RFLDO 0HGLD ZRUNVKRSV DQG VHYHUDO DFFRXQWDELOLW\WRWKHSHRSOHRI,QGLD
RXWUHDFKSURJUDPPHV
1,&1(7WKHQDWLRQZLGH1HWZRUNKDVRYHU
1H*'KDVUHFHQWO\WDNHQVHYHUDOQHZLQLWLDWLYHVWR QRGHV LQ 'HOKL *RYW EXLOGLQJV  RYHU 
EULQJSDUDGLJPVKLIWLQWKHHQWLUHHFRV\VWHPRIH QRGHV LQ 6WDWH 6HFUHWDULDW %XLOGLQJV $FFHVV WR
*RYHUQDQFH LQ ,QGLD 7KHVH LQLWLDWLYHV LQFOXGH 1 , & 1 ( 7  W K U R X J K  : L ) L  L Q  Y D U L R X V  & H Q W U D O
'LJLWDO/RFNHU6\VWHP5DSLG$VVHVVPHQW6\VWHP *RYHUQPHQW2IÀFHVKDYHXVHUVDQG
5$6  *,6 DV 'HFLVLRQ 6XSSRUW 6\VWHP *% GDLO\ GDWD XVDJH 7KHUH DUH  H6HUYLFHV
& H Q W U D O L ] H G  H  * R Y H U Q D Q F H  & R P S H W H Q F \ IURPYDULRXV0LQLVWULHVVWDWHV87VDQGDOO0LVVLRQ
)UDPHZRUN HWF KDYH DOUHDG\ EHHQ LPSOHPHQWHG 0RGH 3URMHFWV 003  ZLWK RYHU  FURUHV
DQG FXUUHQWO\ EHLQJ VFDOHG XS 6RPH RWKHU H7UDQVDFWLRQVWLOOGDWH&LWL]HQVDFURVV,QGLDDFFHVV
LQLWLDWLYHV LQFOXGLQJ 8QLÀHG 0RELOH $SSOLFDWLRQ IRU 1,&SRUWDOVHYHU\GD\IRULQIRUPDWLRQDQGVHUYLFHV
1HZ $JH *URXS 80$1*  ,QGLD /DQJXDJH 7KH GDWD FHQWUHV RI 1,& KRVW PRUH WKDQ 
6XSSRUW RQ DOO 0RELOH SKRQH HWF KDYH EHHQ ZHEVLWHV RI WKH *RYHUQPHQW LQ WKH VHFXUHG
FRQFHSWXDOL]HG HQYLURQPHQW
 *RYHUQPHQW·V ,7 LQIUDVWUXFWXUH  1DWLRQDO 7KH 1,& 1DWLRQDO &ORXG 0HJKUDM  LV SUHVHQWO\
,QIRUPDWLFV&HQWUH 1,&  KRVWLQJ D QXPEHU RI FULWLFDO DSSOLFDWLRQV RQ RYHU
 YLUWXDO VHUYHUV LQ FORXG HQYLURQPHQW
7KH 1DWLRQDO ,QIRUPDWLFV &HQWUH 1,&  ZDV
VXSSRUWLQJ  H*RYHUQDQFH SURMHFWV XQGHU
HVWDEOLVKHGLQDQGKDVHPHUJHGDVDSULPH
'LJLWDO,QGLD$QHZVWDWHRIWKHDUWGDWDFHQWUHDW
EXLOGHU RI H*RYHUQPHQW  H*RYHUQDQFH
%KXEDQHVKZDUDQG%KRSDOLVEHLQJVHWXS1,&KDV
DSSOLFDWLRQVXSWRWKHJUDVVURRWVOHYHODVZHOODVD
WKHODUJHVWH0DLOVHUYLFHLQWKHFRXQWU\ZLWKPRUH
SURPRWHU RI GLJLWDO RSSRUWXQLWLHV IRU VXVWDLQDEOH
WKDQ  PLOOLRQ H0DLOV WUDQVDFWHG SHU PRQWK ,W
GHYHORSPHQW 1,& KDV VSHDUKHDGHG ,QIRUPDWLFV
KDVWKHODUJHVW9LGHR&RQIHUHQFLQJQHWZRUNLQ,QGLD
/ H G  ' H Y H O R S P H Q W µ  E \  L P S O H P H Q W L Q J  , & 7
IDFLOLWDWLQJDURXQGPXOWLVLWHFRQIHUHQFHVDQG
DSSOLFDWLRQVLQVRFLDO SXEOLFDGPLQLVWUDWLRQ DQG


 $QQXDO5HSRUW

RYHUVLWHKRXUVRI9&VHVVLRQVFRQGXFWHG 1DWLRQDO 'DWD &HQWUH 'HOKL ZDV DXJPHQWHG ZLWK

3%RI(QWHUSULVH&ODVV6WRUDJHZLWKPL[RIKLJK
2QWKH1DWLRQDO.QRZOHGJH1HWZRUN 1.1 DWRWDO
SHUIRUPDQFH66'VWRUDJH7%8QLÀHG6WRUDJH
RI  OLQNV WR YDULRXV LQVWLWXWLRQV KDYH EHHQ
DQG 7% 9LUWXDO 7DSH /LEUDU\ 6RIWZDUH 'HÀQHG
FRPPLVVLRQHG DQG RSHUDWLRQDO 1,& FRQWLQXHV WR
1HWZRUNLQJ ZDV LPSOHPHQWHG IRU &HQWUDOL]HG
SURYLGH YLWDO VXSSRUW WR 35$*$7, 35R $FWLYH
3URYLVLRQLQJ 0RQLWRULQJ  0DQDJHPHQW RI DOO
*RYHUQDQFH$QG7LPHO\,PSOHPHQWDWLRQRIYDULRXV
1HWZRUNLQJ GHYLFHV ,39 KDV EHHQ WHVWHG 
JRYHUQPHQW VFKHPHV  ZKHUHLQ +RQ·EOH 3ULPH
FRQÀJXUHGLQ1HWZRUNLQJ 6HFXULW\'HYLFHVLQGXDO
0LQLVWHUPRQLWRUVLPSOHPHQWDWLRQRIFULWLFDOSURMHFWV
VWDFN PRGH DQG KLJKHU WKURXJKSXW ÀUHZDOO  ,36
RI YDULRXV PLQLVWULHV  'HSDUWPHQWV DFURVV WKH
KDYHEHHQGHSOR\HGLQ'DWD&HQWUHWRFDWHUKLJKHU
FRXQWU\
WUDIÀF DW 1'& 'HOKL $URXQG  YLUWXDO VHUYHUV
$W WKH 6WDWH OHYHO 1,& LV SURYLGLQJ ,&7 DQG ZHUHDGGHGLQWKHGDWDFHQWUHWKURXJK&ORXG
H*RYHUQDQFHVXSSRUWWR6WDWH'HSDUWPHQWV6RPH
7KH3URMHFWIRUHVWDEOLVKLQJD1DWLRQDO'DWD&HQWUH
RIWKHLPSRUWDQWSURMHFWVLPSOHPHQWHGDUH0LG'D\
DW %KXEDQHVZDU ZDV DSSURYHG DW DQ RXWOD\ RI
0HDOH+506 0DQDY6DPSDGD H3DUHHNVKD5HDO
5V &URUHV (VWDEOLVKPHQW RI 1'& DW
&UDIWH9LGKDQH'LVWULFW/DQGUHFRUGVDQGSURSHUW\
%KXEDQHVZDULVLQSURJUHVVEXLOGLQJVWUXFWXUHKDV
UHJLVWUDWLRQWUHDVXULHVH+RVSLWDODQGPDQ\PDQ\
EHHQ FRPSOHWHG  /DQG RI  $FUHV IRU SURSRVHG
PRUH
1DWLRQDO'DWD&HQWUHDW%KRSDOKDVEHHQDFTXLUHG
 1,&,7,QIUDVWUXFWXUH DQGFRQVWUXFWLRQRIERXQGDU\ZDOOLVLQSURJUHVV
'DWD&HQWUHV,QIUDVWUXFWXUH 1DWLRQDO &ORXG 6HUYLFHV XQGHU WKH 8PEUHOOD RI
1,& LV RSHUDWLQJ 1DWLRQDO 'DWD &HQWUHV DW 'HOKL 0HJKUDM DUHEHLQJSURYLGHGDWQDWLRQDOOHYHOZLWK
+\GHUDEDG DQG 3XQH  +RVWLQJ VXSSRUW IRU H WKH DLP WR SURYLGH VFDODEOH ,&7 LQIUDVWUXFWXUH IRU
*RYHUQDQFH $SSOLFDWLRQV DQG :HEVLWHV LV EHLQJ TXLFN GHSOR\PHQW RI H*RYHUQDQFH LQLWLDWLYHV RI
SURYLGHGRQ;EDVLV1DWLRQDO'DWD&HQWUHDOVR JRYHUQPHQWXVHUVLQFOXGLQJPLQLVWULHVGHSDUWPHQW
SURYLGHV 1DWLRQDO &ORXG VHUYLFHV IRU *RYHUQPHQW VWDWH JRYHUQPHQWV HWF 7KH VHUYLFH KDV EHHQ
3URMHFWV%HVLGHVWKHVHPLQL'DWD&HQWUHVDUHDOVR GHVLJQHG WR VXSSRUW 6HOI 6HUYLFH SURYLVLRQLQJ
RSHUDWLRQDOLQDOO1,&6WDWH&HQWUHVWRFDWHUWRWKHH PXOWLORFDWLRQDQGVHDPOHVVLQWHJUDWLRQRIYDULRXV
*RYHUQDQFH UHTXLUHPHQWV DW WKH 6WDWH OHYHO VWDWHRIDUW &ORXG VROXWLRQV &XUUHQWO\ RYHU 
+RVWLQJVXSSRUWLVDOVREHLQJSURYLGHGIRUYDULRXV H*RYHUQDQFHSURMHFWVDUHKRVWHGLQFOXGLQJ0\*RY
H*RYHUQDQFH 3URMHFWV YL] H3URFXUHPHQW H 'LJLWDO ,QGLD 3RUWDO 'LJLWDO /RFNHU 3ULPH 0LQLVWHU
3DQFKD\DW$DGKDDU(QDEOHG%LRPHWULF$WWHQGDQFH 2IÀFH 3RUWDO H1$0 1DWLRQDO $JULFXOWXUH 0DUNHW 
6\VWHP $(%$6  H3UDPDDQ 0RWKHU DQG &KLOG 3RUWDO  1DWLRQDO 6FKRODUVKLS 3RUWDO %LRPHWULFV
7UDFNLQJ6\VWHP 0&76 ,9)571H*3$JULFXOWXUH $DGKDDU$WWHQGDQFHV\VWHP IRU*RYW(PSOR\HHV
+0,6 3XEOLF )LQDQFLDO 0RQLWRULQJ 6\VWHP %$6 SURMHFWVHWFDUHKRVWHGXVLQJDOORFDWLRQVRI
&3606  3'6 6ZDFKK %KDUDW 0LVVLRQ 1DWLRQDO RYHU9LUWXDO0DFKLQHV
3RUWDO RI ,QGLD -HHYDQ 3UDPDDQ &&%6 15(*$  1 , &  :H E & R Q Q H F W  ( / H D U Q L Q J  6 H U Y L F H
DQG*R,6HDUFK1'&'HOKLKDV'LVDVWHU5HFRYHU\ 6XFFHVVIXOO\ FRQGXFWHG 9LUWXDO &ODVVURRP
VHWXS DW +\GHUDEDG DQG 3XQH $OO 1DWLRQDO 'DWD 6HVVLRQV 7RWDO&ODVV7RWDO3DUWLFLSDQW 
&HQWUHVDFWDV'LVDVWHU5HFRYHU\&HQWUHVIRU6WDWH DWWHQGHG IURP GLVWULFWVWDWHV DFURVV ,QGLD 0DMRU
'DWD&HQWUHV


0LQLVWU\RI(OHFWURQLFV ,QIRUPDWLRQ7HFKQRORJ\ 0HLW<

WUDLQLQJ RQ &HQWUDO 3URFXUHPHQW &RPSXWHU 1,& KDV EHHQ GHVLJQDWHG DV WKH LPSOHPHQWLQJ
QHWZRUNLQJ RI FRQVXPHU IRUXP FRQIRQHW  6RLO DJHQF\ IRU SURYLGLQJ H0DLO VHUYLFH  WR  WKH
+HDOWK &DUG 6RIWZDUH GHPR IRU GHSDUWPHQW RI JRYHUQPHQWERWKDWWKHFHQWUHDQG6WDWH6HUYLFHV
$JULFXOWXUH 1DWLRQDO $QLPDO 'LVHDVHV 5HSRUWLQJ XQGHUHPDLODUHRIIHUHGIUHHRIFRVWWRDOORIÀFLDOV
6\VWHP 1$'56  6FKRRO 3URJUDP WR EORFNV RI XQGHU 0LQLVWULHV 'HSDUWPHQWV 6WDWXWRU\ %RGLHV
*ULGKL 'LVWULFW RI -KDUNKDQG &RQVRUWLXP IRU $XWRQRPRXV %RGLHV 87 7KH SULPDU\ VHWXS LV DW
(GXFDWLRQ &RPPXQLFDWLRQ &(&  ,QWHJUDWHG 6KDVWUL 3DUN DQG WKH SULPDU\ HPDLO GRPDLQ LV
'LVHDVH VXUYHLOODQFH SURJUDPPH ,'63  HWF H XVHULG#JRYLQ 7KH HPDLO VHUYLFHV KDV D 
/HDUQLQJ VHUYLFHV DOVR XVHG IRU LQKRXVH VXSSRUWWHDP7KHHPDLODFFRXQWVDUHJURZLQJLQ
WHFKQRORJ\ XSGDWHV SURJUDPPH IRU 1,& RIÀFLDOV WHUPVRIFRPSOH[LW\DV1,&VXSSRUWVPRUHWKDQ
DQGUHSRVLWRU\EHLQJFUHDWHGIRUWKHVDPH YLUWXDO GRPDLQV ZLWK D FRXQW RI RYHU  PLOOLRQ
DFFRXQWV7KHDFFHOHUDWLQJJUDSKLQGLFDWHVWKDWLQ
 ,956 ,QWHUDFWLYH 9RLFH 5HVSRQVH
WKHQHDUIXWXUHWKHH[SHFWHGQXPEHURIDFFRXQWV
6\VWHP 
ZLOOUHDFKDERXWPLOOLRQ7KHGDLO\HPDLOWUDIÀF
,956 LV XVHG DV WKH FKHDSHVW PRGH WR FROOHFW ZLWKRXWVDPSDUNWUDIÀF LVPLOOLRQ LQFRPLQJ 
GLVVHPLQDWH GDWD DFURVV WKH ZRUOG ,W SURYLGHV D DQGPLOOLRQ RXWJRLQJ PDLOV7KHPHVVDJLQJ
[VXSSRUWFRQWDFWPRGHIRUSHRSOHRQWKHPRYH VHUYLFH RI 1,&1(7 SURYLGHV DQ LQWHJUDWHG
DQGIRUWKRVHZLWKMXVWWKHEDVLFSKRQHIDFLOLW\1,& DSSOLFDWLRQ VROXWLRQ ZLWK SURDFWLYH PDQDJHPHQW
,956 KDV EHHQ GRLQJ WKH VDPH IRU PRUH WKDQ D DQGPDLQWHQDQFHLQDVLQJOHVRXUFHVROXWLRQ7KHUH
GHFDGH,WLVVHHQDVDPDMRUPRGHWRGLVVHPLQDWH DUH YDULRXV WKLUG SDUW\ DSSOLFDWLRQV OLNH ORJ DSS
LQIRUPDWLRQLQWKHH*RYHUDWRWRXFKEDVHZLWKWKH 3DVV$SS,GORRNXSSURÀOHDQGODVWORJLQZKLFKDUH
JUDVV URRWV OHYHO WKURXJK WKH EDVLF SKRQH DW WKH IXQFWLRQDO DQG DUH XVHG WR PDNH HPDLO VHUYLFHV
FKHDSHVWPRGH$SSOLFDWLRQVKRVWHGRQWKHFHQWUDO PRUHHIIHFWLYH1,&DOVRSURYLGHVH0DLOGLVWULEXWLRQ
,956DOOGHYHORSHGLQKRXVHXVLQJWKH$65 776 OLVWIRUEXONHPDLOIRURIÀFLDOSXUSRVH
IHDWXUHVDUH
H6DPSDUN
+RQ3ULPH0LQLVWHU·V¶0DQQ.L%DDWGDWDFROOHFWLRQ
7KH ,7 SODWIRUP IRU VHDPOHVV FRPPXQLFDWLRQ
SURJUDP$SSOLFDWLRQIRUFROOHFWLRQRIVXUYH\GDWD
EHWZHHQWKH*RYHUQPHQWDQG&LWL]HQVDQGRQHRI
IRU WKH ´5DWH 0\ *RYWµ.DLODVK 0DQVDURYDU <DWUD
WKHHDUO\KDUYHVWSURJUDPPHVRI'LJLWDO,QGLDLVDOVR
.0< ,956ZLWK+HOS'HVN7RXULVW9LVDRQ$UULYDORI
FRQÀJXUHGXQGHU1,&0HVVDJLQJVHUYLFH:LWKD
WKH,9)57$SSOLFDWLRQVWDWXVRIWKHYRWHUGHWDLOVRI
GDWDEDVH RI RYHU  FURUH HPDLO DGGUHVVHV DQG
WKH&(2'HOKL1DWLRQDO+HDOWK3URWHFWLRQ6FKHPH
RYHU  FURUH PRELOH QXPEHUV WKH SODWIRUP KDV
1+36  32& GRQH ZLWK LQWHJUDWLRQ RI $DGKDU IRU
VHQWRYHUFURUH0DLOHUVDFURVVFDPSDLJQV
YHULÀFDWLRQ RI ,QVXUDQFH EHQHÀFLDULHV 0LVVLQJ
WLOOGDWHVLQFHLWVODXQFKLQ$XJXVW
&KLOG UHSRUWLQJ DQG VLJKWLQJ GDWD FROOHFWLRQ ,956
XQGHU 0LQ RI :RPHQ  &KLOG 0LGGD\ PHDO H*UHHWLQJV
GLVWULEXWLRQ GDWD FROOHFWLRQ IURP DOO RYHU ,QGLD
H*UHHWLQJVDQRWKHULQLWLDWLYHXQGHUWKHHDUO\KDUYHVW
&RPPLWWHHVHWXSIRUIXUWKHUH[SDQVLRQRI,956IRU
SURJUDPPHVRI'LJLWDO,QGLDDQGFRQÀJXUHGXQGHU
GLIIHUHQWDSSOLFDWLRQV
1,&PHVVDJLQJXPEUHOOD LVDJUHHQLQLWLDWLYHIRU
H0DLODQG6066HUYLFHV VHQGLQJHFRIULHQGO\FDUGVWRHDFKRWKHU:LWK
FDWHJRULHV RI FDUGV IRU DOO IHVWLYDOV DQG GD\V RI
H0DLO6HUYLFHV


 $QQXDO5HSRUW

QDWLRQDO LPSRUWDQFH  WKH LQLWLDWLYH VXSSRUWV WH[W ,QWHUQHW EDQGZLGWK DQG IDVWHU DFFHVV RI RWKHU
DXGLRSUHGHÀQHGTXRWHVE\+RQ·EOH30VORJDQV 1HWZRUN'DWDFHQWUHV
DQG ORJRV RI HDFK 0LQLVWU\ 2YHU  FURUH FDUGV
 1,&1(796$76HUYLFHV
KDYHEHHQVHQWE\WKHFLWL]HQVVLQFHLWVODXQFK
1,& 96$7 1HWZRUN 1,&1(7 KDV EHHQ RIIHULQJ
606 6KRUWPHVVDJHVHUYLFHV 6HUYLFHV
U H G X Q G D Q W  ' 9 %  % U R D G E D Q G  D Q G  6 & 3 &
606JDWHZD\VHUYLFHLVDOVRSURYLGHGE\1,&DVD '$0$3$0$ QHWZRUN VHUYLFHV IURP 'HOKL DQG
SDUW RI LWV PHVVDJLQJ VROXWLRQ 7KH VHUYLFH LV +\GHUDEDG RYHU .XEDQG WR GLVWULFWV LQ GLIÀFXOW
DYDLODEOHWRDOO*RYHUQPHQWDSSOLFDWLRQVERWKDWWKH WHUUDLQVVXFKDV1RUWK(DVWHUQVWDWHVKLOO\UHJLRQV
FHQWUHDQG6WDWH,WKDVYDULRXVDGYDQFHIHDWXUHV RI +LPDFKDO 3UDGHVK 8WWDUDNKDQG DQG - . IRU
OLNH 386+ 38// %ORFNRXW WLPH VFKHGXOLQJ UXQQLQJ'DWD9RLFH 9LGHRDSSOLFDWLRQV6RPHRI
ORFDOL]DWLRQ RI FRQWHQW LQWHUQDWLRQDO 606 2%' WKHVH ORFDWLRQV KDYH 96$7V DV SULPDU\ VRXUFH RI
2XWERXQG GLDOOLQJ   0LVVHG FDOO VHUYLFH 606 FRQQHFWLYLW\ ZKLOH RWKHUV XWLOL]H 96$7V DV EDFNXS
DQDO\WLFVYLVXDOLVDWLRQ HWF &XUUHQWO\ PRUH WKDQ FRQQHFWLYLW\ ZKHUH WHUUHVWULDO OHDVHG OLQHV DUH QRW
 H*RY DSSOLFDWLRQV DUH LQWHJUDWHG ZLWK WKH VWDEOH
JDWHZD\ ZKLFK LQFOXGHV  YDULRXV FULWLFDO SURMHFWV
1,& LV DOVR SURYLGLQJ VDWHOOLWH EDQGZLGWK IURP
OLNH 0DQQ .L %DDW 0\*RY 6DPSDUN 'LJLWDO ,QGLD
1,&1(7 SRRO WR 96$7V RI YDULRXV SURMHFWV RI
SRUWDOH+HDOWK1DWLRQDO6FKRODUVKLSSRUWDO-HHYDQ
FHQWUDOVWDWH JRYHUQPHQW GHSDUWPHQWV VXFK DV
3UDPDDQ%$60RWKHUDQG&KLOG7UDFNLQJ.KR\D
5XUDO7D[DWLRQ7UHDVXU\)LQDQFH+HDOWKDQG)RRG
3D\D,QFRPH7D[9DKDQ6DUWKLH3URFXUHPHQWHWF
VXSSOLHVLQJHRJUDSKLFDOO\GLIÀFXOWORFDWLRQVZKHUH
7KHDYHUDJHPRQWKO\WUDIÀFLVDERXW&URUH
WHUUHVWULDO FRQQHFWLYLW\ LV HLWKHU QRW DYDLODEOH RU
606 7KH VHUYLFH DOVR RIIHUV PXOWLOLQJXDO 606
UHOLDEOH IRU GHOLYHULQJ HJRYHUQDQFH VHUYLFHV )RU
RSWLRQV IRU ORFDOL]DWLRQ LQ GLIIHUHQFH SDUWV RI RXU
UXQQLQJ96$7VHUYLFHV1,&KDVOHDVHGWUDQVSRQGHU
FRXQWU\
EDQGZLGWKIURP,652RQ,16$7&5VDWHOOLWH1,&
 1,&1(7² (*RYHUQDQFH 1HWZRUN KDVVXFFHVVIXOO\HVWDEOLVKHGVDWHOOLWHEDVHGUHOLDEOH
%DFNERQH FRPPXQLFDWLRQ QHWZRUN IRU 1DWLRQDO 'LVDVWHU
5HVSRQVH)RUFH 1'5) %DWWDOLRQVWKURXJK1,&6,
&RUH RI 1,&1(7 EDFNERQH LV IXOO\ XSJUDGHG WR
XVLQJ )L[HG DQG WUDQVSRUWDEOHTXLFN GHSOR\DEOH
PXOWLSOH  *ESV FDSDFLW\ ZLWK VXIÀFLHQW
96$7V QRQ PRWRUL]HG  ZKLFK FDQ EH FDUULHG WR
UHGXQGDQF\6WDWHVDUHFRQQHFWHGWKURXJKPXOWLSOH
GLVDVWHU VLWHV E\ 1'5) SHUVRQQHO IRU VHWWLQJ XS
*ESVOLQNVDQGGLVWULFWV0ESVOLQNVZLWK
(PHUJHQF\ 2SHUDWLRQ &HQWHUV GXULQJ D FULVLV
UHGXQGDQF\EXLOWDW6WDWHDQG'LVWULFWOLQNV/DVWPLOH
VLWXDWLRQDQGIDFLOLWDWLQJUHOLHIDQGUHVFXH
UHGXQGDQF\IRU1,&1(7KDVEHHQH[WHQGHGWRPRUH
QXPEHURIGLVWULFWVZLWKSULPDU\OLQNIURP%61/DQG 1,&KDVHVWDEOLVKHGD6DWHOOLWHEDVHG96$7QHWZRUN
VHFRQGDU\ OLQNV IURP 5DLOWHO3*&,/ 0RVW RI WKH WKURXJK1,&6,IRUD0HLW<SURMHFWWRFRQQHFW
%KDZDQ OLQNV DW 'HOKL ZKLFK DUH FXUUHQWO\ RQ  &RPPRQ 6HUYLFH &HQWHUV &6&  ORFDWHG LQ
0ESVDUHXSJUDGHGWR0ESVDQGWKRVHDUHRQ JHRJUDSKLFDOO\ GLIÀFXOW DUHDV RI 1RUWK (DVWHUQ
0ESVDUHXSJUDGHGWR*ESV'LUHFWSHHULQJRI 6WDWHVDQGRWKHUSDUWRIWKHFRXQWU\IRU SURYLGLQJ
1,&1(7 ZLWK %61/ 3*&,/ DQG 5DLOWHO DUH EURDGEDQG W\SH LQWHUQHW HQDEOHG FRQQHFWLYLW\ IRU
FRPSOHWHG DW 'HOKL DQG +\GHUDEDG IRU VDYLQJ GHOLYHULQJH*RYHUQDQFHVHUYLFHV


0LQLVWU\RI(OHFWURQLFV ,QIRUPDWLRQ7HFKQRORJ\ 0HLW<

9LGHR&RQIHUHQFLQJ 9& 6HUYLFHV LPSOHPHQWDWLRQ LQ  VWDWHV DQG WHVWHG 

RSHUDWLRQDOL]HGDWHVWDEOLVKPHQWV
1,&·V9LGHRFRQIHUHQFLQJVHUYLFHVDUHEHLQJXVHG
VLQFH9LGHRFRQIHUHQFLQJDFWLYLWLHVKDVEHHQ 2QOLQH&OLQLFDO7ULDOV$SSOLFDWLRQ0RQLWRULQJ6\VWHP
RQHRIWKHÁDJVKLSVHUYLFHZKLFKIDFLOLWDWHVGLUHFW ZKLFKLVZHEDSSOLFDWLRQ FORXGHQDEOHGKDVEHHQ
LQWHUDFWLRQ ZLWK FRQFHUQHG VWDNH KROGHUV $OO GHYHORSHG UHOHDVHGIRU&HQWUDO'UXJV6WDQGDUG
VHFWLRQV RI *RYHUQPHQW LQFOXGLQJ +RQ EOH &RQWURO 2UJDQLVDWLRQ 7KH :HE HQDEOHG 0DUULDJH
3UHVLGHQW RI ,QGLD *RYHUQRUV &KLHI 0LQLVWHUV 5HJLVWUDWLRQVZZDVODXQFKHGLQ2FWREHUIRU
6HFUHWDULHVWR*RYWRI,QGLDDQG&KLHI6HFUHWDULHV FLWL]HQVRQ,*5ZHEVLWHIRUGLVWULFWV LVVKRUWOLVWHG
XWLOLVH 9LGHRFRQIHUHQFLQJ WKURXJK 1,&1(7 $Q WREHUHGHYHORSHGDVDSURGXFWIRUDOOWKHVWDWHV
DQQXDOXVDJHRI9LGHRFRQIHUHQFLQJKRXUV
7KH DSSOLFDWLRQV IRU 5LJKW WR (GXFDWLRQ 57(  
RI9&KDVEHHQUHFRUGHGZLWKRYHUVWXGLRV
DGPLVVLRQV  6DQFK 0DQ\DWD DUH GHYHORSHG 
DQGPXOWLSRLQWYLGHRFRQIHUHQFLQJVHVVLRQV
UHOHDVHG $SSOLFDWLRQ 6HYDDUWK ZKLFK LV D UXOH
2SHQ7HFKQRORJ\*URXS 27*  EDVHG LQWHJUDWHG ZHE HQDEOHG JHQHUDO HGXFDWLRQ
GDWDEDVHV 6FKRRO6WXGHQW 7HDFKHUVGDWDEDVH 
 2SHQ 7HFKQRORJ\ *URXS FRQWLQXHG WR VXSSRUW
DVDSD\UROOSDFNDJHLVGHYHORSHGE\6'83XQH 
SURMHFWWHDPVWRXQGHUVWDQGDQGDGRSWWKH2SHQ
ZDVVKRUWOLVWHGE\&$*IRUXVHLQDOOFHQWUDOJRYW
6RXUFH6RIWZDUHVROXWLRQV
RIÀFHVQDWLRQDOO\DQGPDGHSDUWRI3)06
 6RIWZDUH 'HYHORSPHQW 8QLW 6'8  
7UDLQLQJ&HQWUH.RFKL
7KH DSSOLFDWLRQ VXSSRUW DQG LPSOHPHQWDWLRQ KDV
EHHQGRQHIRUIROORZLQJH&RLU &RLU6HFWRU060(
%HQHÀW0DQDJHPHQW6\VWHP )LVKHULHV0DUNHWLQJ
DQG3URGXFWLRQ0DQDJHPHQW6\VWHP )0306 IRU
1,)3+$77 &RPPRQ$GPLVVLRQ7HVW &$7 
IRU&RFKLQ8QLYHUVLW\RI6FLHQFH 7HFKQRORJ\ IRU
UHDOWLPHFRXQVHOLQJDQGDGPLVVLRQV :HE3RUWDO
IRU .HUDOD 6WDWH 0HGLDWLRQ &HQWUH :HE 3RUWDO IRU
(PSOR\HH6WDWH,QVXUDQFH.203$60LQHVDQG
*HRORJ\ 0RYHPHQW DQG 3HUPLW 0DQDJHPHQW
6 \ V W H P   % $ 6  , P S O H P H Q W D W L R Q  L Q  & H Q W U D O
 6RIWZDUH'HYHORSPHQW8QLW 6'8 3XQH 2UJDQL]DWLRQV 3D\UROO 3HUVRQQHO DQG %XGJHW
6'81,&3XQHLVGHYHORSLQJVZDSSOLFDWLRQVIRU 0DQDJHPHQW6\VWHPVIRU1,)3+$7712&RU323
)LQDQFH$JULFXOWXUH5HJLVWUDWLRQ/DQG5HFRUGV  IRU/RFDWLRQVLQFOXGLQJ$LUSRUWIHZGLVWULFWV&%,
(GXFDWLRQ PDLQO\ IRU 0DKDUDVKWUD  IHZ  RWKHU 1,&/DNVKDGZHHSHWF:HE6HUYLFHVDQG6HFXULW\
VWDWHV7KHH&RXUWV &DVH,QIRUPDWLRQ6\VWHP&,6  $XGLW 6XSSRUW DQG 7UDLQLQJ 6HUYLFHV IRU &HQWUDO
IRU'LVWULFW 7DOXND 1DWLRQDO&RUH LVLPSOHPHQWHG 2UJDQL]DWLRQV H2IÀFH LPSOHPHQWDWLRQ LQ 6SLFHV
QDWLRQDOO\LQVWDWHVDWORFDWLRQV7KHZHE %RDUG DQG &RLU %RDUG +$:$/$ GDWDEDVH IRU
HQDEOHG YHUVLRQ RI &,6 ZDV UHOHDVHG IRU SLORW (QIRUFHPHQW'LUHFWRUDWH:HE3RUWDOIRU&,)1(7HWF


 $QQXDO5HSRUW

 6HUYLFH3OXV  'HYHORSPHQW RI 1RUWK (DVWHUQ 5HJLRQ

'R1(5 
6HUYLFH3OXVLVDPHWDGDWDEDVHGH6HUYLFH'HOLYHU\
IUDPHZRUN XVLQJ ZKLFK RQH FDQ UDSLGO\ UROORXW 7KH8QLRQ0LQLVWHURI6WDWH ,QGHSHQGHQW&KDUJH 
H6HUYLFHV ZLWKRXW GHYHORSLQJ D QHZ VRIWZDUH IRU IRU'HYHORSPHQWRI1RUWK(DVWHUQ5HJLRQ 'R1(5 
HDFK VHUYLFH ,W LV  D FRQÀJXUDEOH PXOWLWHQDQF\ 'U-LWHQGUD6LQJKODXQFKHGDQHZRQOLQHH3RUWDO
IUDPHZRUNZLWKEXLOWLQLQWHUIDFHVWR16'*66'* GHVLJQHGGHYHORSHGDQGFXVWRPLVHGE\1,&IRU
&6&  'LJL/RFNHU 5$6 3D\PHQW *DWHZD\V VXEPLVVLRQ VXUYHLOODQFH DQG IROORZ XS RI
1'0/DQG6%,H3D\ $DGKDDUDQG'6& 'RQJOH GHYHORSPHQW SURMHFWV UHODWLQJ WR 1RUWKHDVW IDOOLQJ
EDVHGDVZHOODVH6LJQ ,QWHJUDWLRQZLWK3)06LV XQGHUWKH1RQ/DSVDEOH&HQWUDO3RRORI5HVRXUFH
XQGHUZD\ZKLFKZLOOHQDEOHLWWREHXVHGWRGHOLYHU 7KHSRUWDOKDVIUDPHZRUNVIRU3URMHFW0DQDJHPHQW
SD\PHQWVHUYLFHVDVZHOO,WLVDOVRLQWHJUDWHGZLWK DQGD'DVKERDUG,WKDVEHHQGHYHORSHGRQ2SHQ
H7UHDVXU\ RI .HUDOD 7KH VHUYLFHV FDQ EH 6RXUFH 3ODWIRUP 7KH 'DVKERDUG HQDEOHV 6WDWH
RSHUDWLRQDOL]HG DQG PDQDJHG E\ VHUYLFHRZQHU *RYHUQPHQWWRH[FKDQJHUHTXLVLWHLQIRUPDWLRQZLWK
GHSDUWPHQWE\XVLQJDGHÀQHUZL]DUGDYDLODEOHDV 'R1(5 DQG WKH SXEOLF DW ODUJH FDQ DFFHVV
SDUW RI 6HUYLFH3OXV   7KH IUDPHZRUN LV GRPDLQ LQIRUPDWLRQDERXW1/&35SURMHFWV
DJQRVWLF DQG FDQ EH XVHG WR FRQÀJXUH DQG  'HIHQFH,QIRUPDWLFV'LYLVLRQ
RSHUDWLRQDOL]H VHUYLFHV RI DQ\ GHSDUWPHQW DW DQ\
0DMRUDFWLYLWLHVSURMHFWVKDQGOHGDUHHVWDEOLVKPHQW
OHYHORI*RYHUQPHQW &HQWUDO6WDWHRU/RFDO ZLWKRXW
RI 03/6 931 QHWZRUN RI 'LUHFWRUDWH *HQHUDO RI
DQ\ DUFKLWHFWXUDO FKDQJHV WR WKH IUDPHZRUN ,W LV
'HIHQFH (VWDWHV GHYHORSPHQW DQG KRVWLQJ RI
EDVHGRQRSHQVRXUFHWRROVDQGWHFKQRORJLHVDQG &HQWUDO $LUPHQ 6HOHFWLRQ %RDUG &$6%  SRUWDO
WKHIRUPVXVHGE\WKHDSSOLFDQWVRURIÀFLDOVDQGWKH 3UHSDUDWLRQRI'35IRU$UPHG)RUFHV7ULEXQDOIRU
GRFXPHQWV JHQHUDWHG E\ WKH V\VWHP FDQ EH FDVH FRPSXWHULVDWLRQ 0R' /$1 VHW XS
GHÀQHGLQDOO81,&2'(FRPSOLDQWODQJXDJHV,WLV LPSOHPHQWDWLRQ RI H2IÀFHH3URFXUHPHQW
IXOO\ FRPSOLDQW ZLWK /RFDO *RYHUQPHQW 'LUHFWRU\ 63$552:HPDLO UHPRWH DGPLQ'LUHFW %HQHÀW
KWWSOJGLUHFWRU\JRYLQ ZKLFKKDVEHHQGHFODUHG 7UDQVIHU&0)ZHEVLWHVRI'HSDUWPHQWRI'HIHQFH
E\&DELQHW6HFUHWDULDW*RYHUQPHQWRI,QGLDDVWKH 3URGXFWLRQDQG0LQLVWU\RI'HIHQFH&ORXGKRVWLQJ
VWDQGDUG SODWIRUP IRU SURYLGLQJ VWDQGDUG ORFDWLRQ IRU HQWLUH VHFWRU H*RYHUQDQFH SURMHFWV IRU SDQ
DQGORFDOJRYHUQPHQWFRGHV,WKDVDEXLOWLQIRUP ,QGLD PDQDJHPHQW RI 1&& H%LOOLQJ V\VWHP IRU
GHVLJQHU SURFHVVÁRZ GHVLJQHU QRWLÀFDWLRQ 3ULQFLSDO &RQWUROOHU RI 'HIHQFH $FFRXQWV 3&'$ 
GHVLJQHU DQG GRFXPHQW GHVLJQHU DQG FDQ EH HWF
LQWHJUDWHG ZLWK DQ\ DSSOLFDWLRQ WKURXJK ZHE
)RRG3URFHVVLQJ,QGXVWULHV,QIRUPDWLFV
VHUYLFHV
'LYLVLRQ
$WSUHVHQWLWLVEHLQJXVHGWRGHOLYHUVHUYLFHVE\
0DMRU DFWLYLWLHVSURMHFWV DUH GHYHORSPHQW DQG
   6 W D W H V  $ U X Q D F K D O  3 U D G H V K   $ V V D P 
ODXQFKRI6FKHPH0DQDJHPHQW6\VWHPIRU2QOLQH
&KKDWWLVJDUK +LPDFKDO 3UDGHVK -KDUNKDQG
UHTXHVWVUHOHDVHRIJUDQWVIRUVHWWLQJXSRI0HJD
.HUDOD 0DKDUDVKWUD 0HJKDOD\D 2GLVKD 6LNNLP )RRG 3DUNV&ROG &KDLQV  LPSOHPHQWDWLRQ RI H
DQG 7ULSXUD  DQG PRUH WKDQ  ODNK DSSOLFDWLRQV 2IÀFHH3URFXUHPHQW63$552: 35$*$7,
KDYHEHHQSURFHVVHGVRIDU FRRUGLQDWLRQ DQG GHYHORSPHQW DQG ODXQFK RI


0LQLVWU\RI(OHFWURQLFV ,QIRUPDWLRQ7HFKQRORJ\ 0HLW<

:H E V L W H  E D V H G  R Q  & R Q W H Q W  0 D Q D J H P H Q W 3UDPDDQ H&RXQVHOOLQJ H3DQFKD\DW H'LVWULFW

)UDPHZRUN &0)  IRU 0R)3, XVLQJ 2SHQ 6RXUFH 0RWKHUDQG&KLOG7UDFNLQJ6\VWHP1DWLRQDO$QLPDO
7HFKQRORJ\ 'LVHDVH 5HSRUWLQJ 6\VWHP ,PPLJUDWLRQ &RQWURO
6\VWHP1DWLRQDO.QRZOHGJH1HWZRUNH2IÀFHDQG
 1,&6WDWH8QLWVDQG87V
63$552: HWF $ QXPEHU RI VWDWHV KDYH DOVR
1,&KDVDYDVWSUHVHQFHLQWKH6WDWHVLQWKHIRUPRI GHYHORSHGDQGUHOHDVHGFLWL]HQFHQWULFPRELOHDSSV
1,&VWDWHXQLWHVDQGGLVWULFWXQLWZKLFKSURYLGH,&7 LQ WKH DUHD RI H*RYHUQDQFH 6WDWHV RI +LPDFKDO
VXSSRUW WR 6WDWH JRYW 'LVWULFW DGPLQLVWUDWLRQ DQG 3UDGHVK .HUDOD 7DPLO 1DGX &KDWWLVJDUK
ORFDO JRYW ERGLHV 6WDWH XQLWV KDYH DOVR 0HJKDOD\D DUH DFWLYHO\ LQYROYHG LQ PRELOH DSS
VXFFHVVIXOO\ UROOHG RXW FHQWUDO SURMHFWV VXFK DV GHYHORSPHQW
H3URFXUHPHQW 3'6 7UDQVSRUW H&RXUWV -HHYDQ

.H\LQLWLDWLYHVSURMHFWVE\6WDWHXQLWVRI1,&

6WDWHV87V 3URMHFW 6XPPDU\

$QGKUD3UDGHVK -XGJPHQWV(OHFWURQLF 7KHÀUVWSDSHUOHVVFRXUWDW+\GHUDEDG

 0DQDJHPHQW6\VWHP 
 0RELOHEDVHG'LJLWDO 'LJLWDOSDQFKD\DWVUHYHQXHURVHIURP5V&U
 3DQFKD\DW WR&USHUDQQXP
 '.ULVKL 0RELOH DQG $DGKDDU EDVHG '%7 VROXWLRQ IRU
  GLVWULEXWLRQRIVXEVLGL]HGLQSXWVWRWKHIDUPHUV
%LKDU 3$&6 3$&6 LV D 0RELOH EDVHG VROXWLRQ WR PRQLWRU
  SURFXUHPHQWRI3DGG\IURP)DUPHUV
 (QHUJ\%LOOLQJIRU 5$&( IRU JHQHUDWLQJ (OHFWULFLW\ %LOOV DQG 0RELOH
 5XUDO$UHDV $SSIRU6SRW(QHUJ\%LOOLQJ
&KKDWWLVJDUK &RPSXWHULVHG3DGG\ 3DGG\ 3URFXUHPHQW IRU .06  KDV EHHQ
 3URFXUHPHQW FRPSOHWHG WKURXJK &RPSXWHULVHG V\VWHP
  VXFFHVVIXOO\
 )DLU3ULFH6KRSDXWRPDWLRQ )DLU 3ULFH 6KRS DXWRPDWLRQ LQ &KKDWWLVJDUK KDV
  EHHQUROOHGRXWWR)36VRXWRI)36V
  LQWKH6WDWH
'HOKL 6XE5HJLVWUDURIÀFH 6XE5HJLVWUDURIÀFH&RPSXWHULVDWLRQ '25,6 H
 &RPSXWHULVDWLRQ 6HDUFKPRGXOHODXQFKHGIRUFLWL]HQV
*RD 7KHH&KDOODQ3D\PHQW *RYHUQPHQW 5HFHLSWV ZLWK D GLIIHUHQFH KWWSV
 *DWHZD\ H JRYJRDQLFLQHFKDOODQSJ  LV D SRUWDO IRU
  UHFHLYLQJDOONLQGVRIJRYHUQPHQWUHFHLSWV


 $QQXDO5HSRUW

+DU\DQD ,QYHVW+DU\DQD (DVH RI 'RLQJ %XVLQHVV (R'%  3RUWDO IRU

  ,QYHVWRUVLQ+DU\DQD
 &0:LQGRZ 5HGUHVVDO RI SXEOLF *ULHYDQFHV 6\VWHP (
  3DQFKD\DW &0 DQQRXQFHPHQWV DQG 3XEOLF
  'HPDQGV
+LPDFKDO3UDGHVK 0LG'D\0HDOV$XWRPDWHG 0'0$506 KDVEHHQGHYHORSHGDVDSURGXFW
 5HSRUWLQJDQG IRUFROOHFWLQJLQIRUPDWLRQIURPDOOVFKRROVRIDQ\
 0DQDJHPHQW6\VWHP 6WDWHZKRLVRQERDUGDQGWRLPSURYHWKHTXDOLW\
  RIIRRG
 +LP.RVKVRIWZDUH 7KLVVROXWLRQIRUWKHÀQDQFHVHFWRUKDVHQDEOHG
  WKHRQOLQHSUHSDUDWLRQDQGVXEPLVVLRQRIDOOW\SHV
  RIELOOV
 0DQDY6DPSDGD H + 5 0 V  V R O X W L R Q  I R U  K X P D Q  U H V R X U F H
  PDQDJHPHQWLVXQGHUUHSOLFDWLRQLQ6WDWHV
.HUDOD 2SHQ3($5/ :HEEDVHGSURSHUW\UHJLVWUDWLRQ
 H7UHDVXU\ *RYHUQPHQWUHFHLSWPDQDJHPHQWSODWIRUP
 5(/,6 5HYHQXH /DQG ,QIRUPDWLRQ 6\VWHP LV 5HFRUG RI
  5LJKWVIRU3URSHUWLHV
0DGK\D3UDGHVK 6$0$*5$ IDFLOLWDWHHIIHFWLYHLPSOHPHQWDWLRQ6RFLDO6HFXULW\
  3URJUDPVDQG'%7
 9,'<$ 9LGHR ,QWHUDFWLYH 'LGDFWLFV IRU \RXU $ZDUHQHVV
  KDV EHHQ ODXQFKHG LQ  FROOHJHV DQG 
  VFKRROV
0DKDUDVKWUD 3HUVRQQHO,QIRUPDWLRQ K W W S    P D K D L D V  Q L F  L Q  H Q D E O H V  W K H  6 W D W H
 6\VWHPIRU,$6RIÀFHUV *RYHUQPHQW WR WUDQVDFW HOHFWURQLFDOO\ ZLWK
 PDKDLDV  'HSDUWPHQWRI3HUVRQQHODQG7UDLQLQJ
 6WDWXV,QIRUPDWLRQ KWWSPDKDVLPQLFLQ HQDEOHV WKH FRQFHUQHG
 0DQDJHPHQWV\VWHP GHSDUWPHQWWRFUHDWHWKHIRUPDWVIRUFROOHFWLRQRI
 6,01,&  GDWDRQGHVLUHGIUHTXHQF\
0HJKDOD\D 1DWLRQDO&DGHW&RUSV 1&&  1&& DSSOLFDWLRQ FDWHUV RQOLQH HQUROPHQW RI
  VWXGHQW RQOLQH SURFHVVLQJ E\ WKH $12 81,7
  *URXSVHWF
3XQMDE 2QHVWRSFOHDULQJ 2QH VWRS FOHDULQJ V\VWHP 26&6 KDV EHHQ
 V\VWHP26&6 DSSODXGHG E\ 3DUOLDPHQW &RPPLWWHH &DELQHW
  6HFUHWDULDWDQGPDQ\VWDWHV


0LQLVWU\RI(OHFWURQLFV ,QIRUPDWLRQ7HFKQRORJ\ 0HLW<

 3XQMDE6HZD3RUWDO 363  3XQMDE6HZD3RUWDO 363 IRU6HZD.HQGUDVKDV

  ODXQFKHG LQ WKH ÀUVW SKDVH  XUEDQ
  6HZD.HQGUDV
5DMDVWKDQ 3HKFKDDQ UHDFKRXWWRFLWL]HQIRU3HKFKDDQWKURXJK
  SRUWDO  $SS/DQG UHJLVWUDWLRQ SURFHVV
  DXWRPDWHGZLWKEDQNVIRUDJULFXOWXUDOORDQV
7DPLO1DGX 7DPLO1,/$0 7DPLO 1DGX ,QIRUPDWLRQ V\VWHP RQ /DQG
  $GPLQLVWUDWLRQDQG0DQDJHPHQWDSSOLFDWLRQDUH
  DLPHG WR PDQDJHPHQW RI /DQG 5HFRUGV
  ODQGSURSHUW\ GLVSXWHV /DQG 5HFRUGV
  PDLQWHQDQFHV\VWHP
 7DPLO1DGX*HRJUDSKLFDO (VWDEOLVKPHQW RI 7DPLO 1DGX 6WDWH 6SDWLDO 'DWD
 ,QIRUPDWLRQ6\VWHP 71*,6  ,QIUDVWUXFWXUH 7166',  DV :HE EDVHG *,6 IRU
  7DPLO1DGX
 &KLHI0LQLVWHU·V3XEOLF &RQWULEXWLRQWR&KLHI0LQLVWHU·V3XEOLF5HOLHI)XQG
 5HOLHI)XQG &035)   &035)  SOD\V D YLWDO UROH LQ SURYLGLQJ 5HOLHI
  PHDVXUHVWRWKHGLVWUHVVHG
7ULSXUD H+RVSLWDO#1,&9HU H+RVSLWDO#1,& 9HU  KDV EHHQ PDGH PXOWL
  WHQDQWFORXGUHDG\DQG6RIDUUHSOLFDWHGLQ
  KRVSLWDOVDFURVVWKHFRXQWU\
8WWDUDNKDQG (GXFDWLRQ3RUWDOIRU 'HVLJQ GHYHORSPHQW DQG LPSOHPHQWDWLRQ RI
 6HFRQGDU\HGXFDWLRQ (GXFDWLRQ 3RUWDO IRU 6HFRQGDU\ HGXFDWLRQ
 'HSDUWPHQW 'HSDUWPHQWDGGLWLRQSD\PHQWJDWHZD\

 1DWLRQDO ,QIRUPDWLFV &HQWUH 6HUYLFHV HYDOXDWHV DFWXDO SHUIRUPDQFH RI 368V DJDLQVW
,QF 1,&6,  WDUJHWV VHW LQ WKH 028 ZLWK WKHLU DGPLQLVWUDWLYH
PLQLVWULHV DQG GHFODUHV JUDGLQJ 1,&6, KDV EHHQ
1DWLRQDO,QIRUPDWLFV&HQWUH6HUYLFHV,QF 1,&6, D
DZDUGHG([FHOOHQW*UDGLQJIRUWKH\HDU
VHFWLRQ  FRPSDQ\ XQGHU 1,& SURYLGHV WRWDO ,&7
VROXWLRQV FRPSULVLQJ RI FRQVXOWLQJ WHFKQLFDO 6RPHRIWKHPDMRUSURMHFWVXQGHULPSOHPHQWDWLRQ
UHVRXUFHV KDUGZDUH VRIWZDUH GHVLJQ  LQFOXGHV 1DWLRQDO .QRZOHGJH 1HWZRUN 1.1  H
GHYHORSPHQW TXDOLW\ FKHFN RSHUDWLRQV  9LGKDQ²²D*UHHQ*RYHUQDQFH7RRO*RYHUQPHQWRI
PDQDJHPHQWDVZHOODVHQGWRHQG,&7VROXWLRQV  +LPDFKDO3UDGHVK.9¶6KDDOD'DUSDQ·.HQGUL\D
VHUYLFHVWR&HQWUDO6WDWH*RYHUQPHQW'HSDUWPHQWV 9 L G \ D O D \ D  6 D Q J D Q W K D Q  0 L Q L V W U \  R I  + 5 '
DQG 2UJDQLVDWLRQV LQFOXGLQJ VWDWHRIWKHDUW *RYHUQPHQWRI,QGLD1DWLRQDO'DWD&HQWUH 1'& 
VROXWLRQV LQ DOO ,&7 UHODWHG GRPDLQV  'XULQJ )< 1,&6, 'HYHORSPHQW &HQWUH )RRG &RUSRUDWLRQ RI
1,&6,KDVFRQWLQXHGWKHVHDFWLYLWLHV7KH ,QGLD1HWZRUNLQJRI,,7'HOKL8QLTXH,'$XWKRULW\RI
WXUQRYHU RI WKH FRPSDQ\ LQ ) <  LV C ,QGLD 'HOKL 0LQLVWU\ RI +HDOWK  )DPLO\ :HOIDUH
FURUHV 7KH 'HSDUWPHQW RI 3XEOLF (QWHUSULVHV *RYHUQPHQW RI ,QGLD .HUDOD /DQG ,QIRUPDWLRQ


 $QQXDO5HSRUW

0LVVLRQ ./,0 *RYHUQPHQWRI.HUDOD(PSOR\HHV 674& 'LUHFWRUDWH DFURVV WKH FRXQWU\ LQFOXGLQJ

3URYLGHQW )XQG 2UJDQLVDWLRQ 1HZ 'HOKL 674& 1RUWK(DVWUHJLRQ674&ODERUDWRULHVRIIHUTXDOLW\
'LUHFWRUDWH RI (OHFWURQLFV DQG ,7 *RYHUQPHQW RI DVVXUDQFH VHUYLFHV LQ WKH ÀHOG RI HOHFWURQLFV DQG
,QGLD(7& LQIRUPDWLRQ WHFKQRORJ\ LQFOXGLQJ H*RYHUQDQFH
DSSOLFDWLRQV IROORZLQJ JOREDO EHVW SUDFWLFHV DQG
%\ WKH HQG RI WKH ÀQDQFLDO \HDU 1,&6, ZRXOG EH
REWDLQHG PDQ\ QDWLRQDO DQG LQWHUQDWLRQDO
LQYROYHG LQ LPSOHPHQWDWLRQ RI DURXQG  QHZ
DFFUHGLWDWLRQVUHFRJQLWLRQV
SURMHFWV 1,&6, KDV DOVR DGGHG QXPEHU RI QHZ
FOLHQWVSURGXFWVDQGVHUYLFHVWRLWVOLVW )X U W K H U  I R U  H Q I R U F L Q J  V W D Q G D U G L ] D W L R Q  L Q
H*RYHUQDQFH GHYHORSLQJ DQG DGRSWLQJ ,&7
 6WDQGDUGL]DWLRQ 7HVWLQJ DQG 4XDOLW\
VWDQGDUGV IRU HIIHFWLYH LPSOHPHQWDWLRQ RI
&HUWLÀFDWLRQ 674& 'LUHFWRUDWH
H*RYHUQQDFH SURMHFWV LQ WKH FRXQWU\  674&
6WDQGDUGL]DWLRQ 7HVWLQJ DQG 4XDOLW\  &HUWLÀFDWLRQ 'LUHFWRUDWHKDVHVWDEOLVKHGD1DWLRQDO&HQWUHIRUH
674& 'LUHFWRUDWHLVDQDWWDFKHGRIÀFHRI0LQLVWU\ *RYHUQDQFH 6WDQGDUGV DQG 7HFKQRORJ\ 6HUYLFHV
RI(OHFWURQLFVDQG,QIRUPDWLRQ7HFKQRORJ\ 0HLW<  RIIHUHGDQGORFDWLRQVRI/DERUDWRULHV&HQWUHVDUH
*RYHUQPHQWRI,QGLD$QHWZRUNRI7HVWLQJDQG LQGLFDWHGLQWKH7DEOH
&DOLEUDWLRQ ODERUDWRULHV KDV EHHQ HVWDEOLVKHG E\

/DERUDWRULHV&HQWUHV /RFDWLRQV 6HUYLFHVRIIHUHG

(OHFWURQLFV5HJLRQDO 'HOKL.RONDWD0XPEDL 7HVWLQJDQG&DOLEUDWLRQ
7HVW/DEV (57/V  7KLUXYDQDQWKDSXUDP
(OHFWURQLFV7HVW  %HQJDOXUX0RKDOL+\GHUDEDG 7HVWLQJDQG&DOLEUDWLRQ
'HYHORSPHQW&HQWUHV &KHQQDL*XZDKDWL3XQH*RD
(7'&V  $JDUWDOD-DLSXU6RODQ$MPHU 
,7&HQWUHV 'HOKL%HQJDOXUX+\GHUDEDG 7HVWLQJRI,7VROXWLRQVIRU)XQFWLRQDODQG
 .RONDWD&KHQQDL3XQH0RKDOL 1RQIXQFWLRQDO 3HUIRUPDQFH8VDELOLW\
 7KLUXYDQDQWKDSXUDP*XZDKDWL 6HFXULW\HWF SDUDPHWHUV
 $JDUWDOD &RORFDWHGZLWK
 UHVSHFWLYH(57/V(7'&V
,7&HQWUHV&RPPRQ .RONDWD &RORFDWHGZLWK 7HVWLQJRI,7SURGXFWVIRU6HFXULW\
&ULWHULD7HVW/DE UHVSHFWLYH(57/ 
,7&HQWUHV%LRPHWULFV 0RKDOL &RORFDWHGZLWK 7HVWLQJDQG&HUWLÀFDWLRQRI)LQJHU
'HYLFHV7HVW/DE UHVSHFWLYH(7'&  3ULQW6FDQQHUV&DPHUDDQG,ULV
  6FDQQHUV
&HQWUHIRU5HOLDELOLW\ &KHQQDL &RORFDWHGZLWK 5HOLDELOLW\WHVWLQJ
 UHVSHFWLYH(7'& 
,QGLDQ,QVWLWXWHRI4XDOLW\-DLSXU &RORFDWHGZLWK 7
 UDLQLQJFRXUVHVRQ4XDOLW\
0DQDJHPHQW ,,40  UHVSHFWLYH(7'& 0DQDJHPHQW,QIRUPDWLRQ6HFXULW\
  :HEVLWH4XDOLW\HWF


0LQLVWU\RI(OHFWURQLFV ,QIRUPDWLRQ7HFKQRORJ\ 0HLW<

/DERUDWRULHV&HQWUHV /RFDWLRQV 6HUYLFHVRIIHUHG

&HQWUHIRU(OHFWURQLF %HQJDOXUX.RONDWD+\GHUDEDG
7HVW(QJLQHHUV &(7(  3XQH1RLGD &RORFDWHGZLWK 3UDFWLFHRULHQWHGVNLOOEDVHG7UDLQLQJ
 UHVSHFWLYH(57/V(7'&V SURJUDPV
 H[FHSW1RLGD 
5HJLRQDO&HUWLÀFDWLRQ 'HOKL.RONDWD0XPEDL%HQJDOXUX &HUWLÀFDWLRQVHUYLFHVIRU4XDOLW\
&HQWUHV &RORFDWHGZLWKUHVSHFWLYH 0DQDJHPHQWDQG3URGXFW6DIHW\
 (57/V(7'&V
1DWLRQDO&HQWUHIRU 'HOKL 'HYHORSLQJDQGDGRSWLQJ,&7VWDQGDUGV
H*RYHUQDQFH6WDQGDUGV  IRUHIIHFWLYHLPSOHPHQWDWLRQRI
DQG7HFKQRORJ\ 1H67   H*RYHUQQDFHSURMHFWV

$FKLHYHPHQWVGXULQJ)< VXFFHVVIXOO\H[HFXWHG7HVWLQJDQG$VVHVVPHQWRI
WKHQXPEHURIH*RYHUQDQFH'HIHQFH6SDFHDQG
,QIRUPDWLRQ 7HFKQRORJ\ ,7  6HUYLFHV RIIHUHG E\
PDMRU,73URMHFWVRI&HQWUDODQG6WDWH*RYHUQPHQWV
674& ,7 &HQWUHV 674& ,7 &HQWUHV KDYH
6RPHRIW\SLFDOSURMHFWVDUHLQGLFDWHGEHORZ

6HUYLFHVRIIHUHG 1DPHRIWKH3URMHFW
&RQIRUPLW\ $VVHVVPHQW y )XQFWLRQDOLW\VHFXULW\DQG3HUIRUPDQFHWHVWLQJRIH3URFXUHPHQWDQGH
6HUYLFHV $XFWLRQ:HEDSSOLFDWLRQIRUYDULRXVRUJDQL]DWLRQVPLQLVWULHV
y &RQGXFWHG7KLUG3DUW\DXGLWIRUYDULRXV6WDWH'DWD&HQWUHVIRU1RUWK(DVW
VWDWHVRI7ULSXUD0HJKDOD\DDQGRWKHUVWDWHVQDPHO\:HVW%HQJDO%LKDU
2GLVKDDQG&KKDWWLVJDUK
y $QQXDO7KLUG3DUW\$XGLWRI3DVVSRUW6HYD3URMHFWRI0LQLVWU\RI([WHUQDO
$IIDLUVWRDVVHVVIXQFWLRQDOLW\VHFXULW\DQG,7VHUYLFHGHOLYHU\RIWKHSURMHFW
y &RQIRUPLW\ $VVHVVPHQW RI 6SHFWUXP $XFWLRQ 6\VWHP IRU 'HSDUWPHQW RI
WHOHFRPLQWLPHERXQGPDQQHU7KHV\VWHPZDVVXFFHVVIXOO\XVHGLQUHFHQW
'R7H$XFWLRQH[HUFLVHRIWKHVSHFWUXPEDQGV

6RPHRIWKHPDMRUH6HFXULW\7HVWLQJMREVXQGHUWDNHQDUHLQGLFDWHGEHORZ

6HUYLFHVRIIHUHG 1DPHRIWKH3URMHFW
,76HFXULW\7HVWLQJ y H6HFXULW\ 7HVWLQJ DQG $VVHVVPHQW $SSOLFDWLRQ DQG ,7 ,QIUDVWUXFWXUH
VHFXULW\ YXOQHUDELOLW\ 7HVWLQJ$VVHVVPHQW VHUYLFHV SURYLGHG WR YDULRXV
*RYHUQPHQW DQG VHPL JRYHUQPHQW 'HSDUWPHQWV QDPHO\ .DUQDWDND
%LRWHFKQRORJ\  ,7 .DUQDWDND 3ROOXWLRQ &RQWURO ERDUG 'LUHFWRUDWH RI
7UHDVXULHV'LUHFWRUDWHRI(OHFWURQLF'HOLYHU\RI&LWL]HQ6HUYLFHVDQG&HQWHU
RIH*RYHUQDQFH


 $QQXDO5HSRUW

y 6HFXULW\9XOQHUDELOLW\$VVHVVPHQWIRUWKHZHEVLWHVRI(PEDVV\RI,QGLDDW
GLIIHUHQWFRXQWULHVOLNH*HUPDQ\5RPDQLD6UL/DQND7DMLNLVWDQ9LHWQDP
8QLWHG.LQJGRPDQG5XVVLDDQGFOHDUHGIRUVDIHKRVWLQJ
y 6HFXULW\WHVWLQJRI%LRPHWULFEDVHGFOLHQWORJLQDSSOLFDWLRQ%,21,;XVHGWR
DXWKHQWLFDWHXVHUVLQFULWLFDODQGVHQVLWLYHDSSOLFDWLRQVYL]%DQNLQJ6HFWRU
GHYHORSHGE\%LRPHWULF3UHFLVLRQ&KHQQDL

(57/ 6 KDVEHHQLGHQWLÀHGE\WKH*RYHUQPHQWRI  )RU WKH SXUSRVH RI HQUROPHQW WR LVVXH 8QLTXH
.HUDODDVWKHWKLUGSDUW\WHVWFHQWUHIRUFDUU\LQJRXW ,GHQWLÀFDWLRQDODUJHQXPEHURIELRPHWULFGHYLFHV
$SSOLFDWLRQ 6HFXULW\ RI WKH ZHEVLWHV DQG ZHE FDPHUDV VFDQQHUV DQG LULV FDPHUDV  DUH EHLQJ
DSSOLFDWLRQV GHYHORSHG IRU WKH YDULRXV VWDWH XVHG H[WHQVLYHO\ DFURVV WKH FRXQWU\ LQ YDULHG
*RYHUQPHQW'HSDUWPHQWVZKLFKDUHEHLQJKRVWHG FOLPDWLFFRQGLWLRQV8,'$,KDVVLJQHGDQ0R8ZLWK
LQWKH6WDWH'DWD&HQWUH)XUWKHU674&LVRQHRIWKH 674& IRU HVWDEOLVKLQJ QDWLRQDO IDFLOLW\ WR HQVXUH
HPSDQHOOHG RUJDQLVDWLRQV IRU ,QIRUPDWLRQ TXDOLW\ RI WKHVH GHYLFHV DV SHU LQWHUQDWLRQDO
7HFKQRORJ\ VHFXULW\ DXGLW ZLWK ,QGLDQ &RPSXWHU VWDQGDUGV7ZRODERUDWRULHVZLWKVWDWHRIDUWWHVWLQJ
(PHUJHQF\ 5HVSRQVH 7HDP DQG 3XEOLF .H\ LQIUDVWUXFWXUH KDYH EHHQ HVWDEOLVKHG DW 'HOKL DQG
,QIUDVWUXFWXUH DXGLW ZLWK &RQWUROOHU RI &HUWLI\LQJ 0RKDOL   VXSSOLHUV KDYH EHHQ FHUWLÀHG VR IDU
$XWKRULW\ 7KLUG SDUW\ ,QIRUPDWLRQ 7HFKQRORJ\ XQGHUWKH%LRPHWULF'HYLFHVFHUWLÀFDWLRQVFKHPH
VHFXULW\DVVHVVPHQWWUDLQLQJVHUYLFHVDUHUHJXODUO\
:HEVLWH4XDOLW\&HUWLÀFDWLRQ6HUYLFHV
SURYLGHGIRUWKHH*RYHUQDQFHLQLWLDWLYHVXQGHUH
*RYHUQDQFH &RQIRUPLW\ $VVHVVPHQW H*&$   8QGHU WKH 3URMHFW ¶6WUHQJWKHQLQJ RI 674& ,7
SURMHFW &HQWHUV IRU :HEVLWH 4XDOLW\ 7HVWLQJ WR VXSSRUW H
*RYHUQDQFH LPSOHPHQWDWLRQ LQ ,QGLD· QHDUO\ 
&RPPRQ&ULWHULD && 7HVW/DERUDWRU\
PRUHZHEVLWHVRIYDULRXV0LQLVWULHV'HSDUWPHQWVRI
 &RPPRQ &ULWHULD 6HFXULW\ 7HVW  (YDOXDWLRQ *RYWRI,QGLDZHUHHYDOXDWHGDVSHU*XLGHOLQHVIRU
/DERUDWRU\DVZHOODVD&HUWLÀFDWLRQ6FKHPHEDVHG ,QGLDQ*RYHUQPHQW:HEVLWHV *,*: &RQVLGHULQJ
RQ&RPPRQ&ULWHULDVWDQGDUGZHUHHVWDEOLVKHGLQ,7 WKHHDUOLHUSURMHFWDOVRQHDUO\ZHEVLWHVKDYH
&HQWUH .RONDWD XQGHU D SURMHFW 7KH &RPPRQ EHHQ HYDOXDWHG DV SHU *,*: LQ WRWDOLW\ 7KH WHVW
&ULWHULD7HVW/DERUDWRU\LVIXOO\RSHUDWLRQDODQGKDV UHSRUWVKDYHDOVREHHQIRUZDUGHGWRWKHUHVSHFWLYH
UHFHQWO\ XQGHUJRQH DVVHVVPHQW IRU WKHLU 0LQLVWULHV'HSDUWPHQWV$VHULHVRIPHHWLQJVZLWK
FDSDELOLWLHVE\DQLQWHUQDWLRQDOWHDP :HE,QIRUPDWLRQ0DQDJHUVDQG:HEVLWHGHVLJQHUV
 GHYHORSHUV KDYH DOVR EHHQ GRQH DV D SDUW RI
7KH&RPPRQ&ULWHULD7HVWLQJODERUDWRU\RI(57/ ( 
KDQGKROGLQJ )XUWKHU  ZHEVLWHV KDYH EHHQ
KDVH[WHQGHGWKHVFRSHRIHYDOXDWLRQWRWKHGHYLFHV
FHUWLÀHGDVSHU*,*:VRIDU
XVHGLQ7HOHFRPVHFWRUDQGVXFFHVVIXOO\HYDOXDWHG
WKH1HWZRUN(OHPHQW0DQDJHPHQW6\VWHPV 106 7HVWDQG&DOLEUDWLRQ6HUYLFHVRIIHUHGE\
(06 XVHGLQWKH7HOHFRPQHWZRUNV (57/V(7'&VLQWKHÀHOGRI(OHFWURQLFV
1DWLRQDOIDFLOLW\IRU4XDOLW\$VVHVVPHQW 674& ODERUDWRULHV KDYH SURYLGHG WHVW DQG
RI%LRPHWULF'HYLFHV FDOLEUDWLRQVHUYLFHVWRDODUJHQXPEHURILQGXVWU\


0LQLVWU\RI(OHFWURQLFV ,QIRUPDWLRQ7HFKQRORJ\ 0HLW<

SXEOLF VHFWRU XQGHUWDNLQJV DQG *RYHUQPHQW 0DUNLQJVFKHPHDVSHU,(&UG

RUJDQLVDWLRQV 6RPH RI WKH PDMRU 7HVWLQJ DQG (GLWLRQ
&DOLEUDWLRQ SURMHFWV XQGHUWDNHQ GXULQJ WKH SHULRG
¾ 6DIHW\WHVWLQJRI'ULYHURI/('ODPSVDVSHU,6
DUHLQGLFDWHGEHORZ
 6HOI%DOODVWHG /(' /DPS DV SHU
7HVWLQJ6HUYLFHV ,6 3W 3RZHU%DQNDVSHU,6
¾ 8QGHU &RPSXOVRU\ 5HJLVWUDWLRQ 6FKHPH ¾ 6DIHW\WHVWLQJRI(QYLURQPHQWDOFKDPEHUDVSHU
(OHFWURQLFVDQG,QIRUPDWLRQ7HFKQRORJ\*RRGV ,(&
2UGHU RI0HLW<FDUULHGRXWVDIHW\WHVWLQJ
¾ (0,(0&WHVWLQJIRU/HYHO,QGLFDWRUVDQG6ZLWFK
RI VDPSOHV SLFNHG XS IRU VXUYHLOODQFH QDPHO\
DVSHUUHOHYDQWSDUWVRI,(&&)/DVSHU
/&'3DQHOV9'86WXGLRSURMHFWRUDVSHU,6
,6 3W (OHFWURQLFUHJXODWRU8QLWDVSHU
 7KLQ FOLHQW VHUYHU DV SHU ,6
,(&
 µ 9LGHR GLVSOD\ XQLW DV SHU ,6
 /(' 79 DV SHU ,6  ¾ 7\SHWHVWLQJRI6WDWLF3UHSD\PHQW0HWHUVDVSHU
0LFURZDYHRYHQDVSHU,6DQG ,6IRU%XUHDXRI,QGLDQ6WDQGDUGVDQGIRU
%DQQHUSULQWHUDVSHU,6HWF (QHUJ\0HWHUPDQXIDFWXUHUV

¾ 6DIHW\WHVWLQJRI(QHUJ\PHWHUVXQGHU674&¶6· ¾ 7HVWLQJ RI 8QPDQQHG $HULDO 9HKLFOH ,QIUDUHG

1LJKWYLVLRQFDPHUDIRUVWUDWHJLFDSSOLFDWLRQV

)LJ7HVWLQJLQSURJUHVV


 $QQXDO5HSRUW

5HOLDELOLW\7HVWLQJ 3RZHU *HQHUDWLRQ DQG 'LVWULEXWLRQ &RPSDQ\

7$1*('&2  :LQG )DUPV %LR0DVV (QHUJ\
¾ $FFHOHUDWHG5HOLDELOLW\7HVWLQJRIPRGXOHVRI
SURGXFLQJ &RPSDQLHV DQG &R*HQHUDWLRQ
&RPSOH[3URJUDPPDEOH/RJLF'HYLFHV &3/' 
SODQWV LQ 7DPLO 1DGX LQ WKHLU PLVVLRQ WR
DQGWKHLUDVVRFLDWHGELDVWHVWFLUFXLWVXVHGLQ
SUROLIHUDWH XVDJH RI HOHFWURQLF PHWHUV IRU
ORQJWHUP5HDFWRU&RQWUROV\VWHPVIRU,*&$5
DFFXUDWHPHWHULQJDQGDOVRWRFXUWDLOORVVHVRQ
'HSWRI$WRPLF(QHUJ\.DOSDNNDP
WKHSDUWRIWKHJHQHUDWLRQDVZHOODVFRQVXPHU
¾ 5HOLDELOLW\ 3UHGLFWLRQ $QDO\VLV RI 6WDELOL]HG 3XEOLFDQGLQGXVWULHV
2SWURQLF 3HGHVWDO IRU ,QGLJHQRXV $LUFUDIW
¾ &DOLEUDWLRQ RI QDYLJDWLRQDO  FRPPXQLFDWLRQ
&DUULHU GHSOR\HG IRU VXUYHLOODQFH REVHUYDWLRQ
LQVWUXPHQWVXVHGIRUWHVWLQJ,/69250DUNHU
DQG HIIHFWLYH HQJDJHPHQW RI VWDWLRQHU\ DQG
%HDFRQ DQG 9+)8+) FRPPXQLFDWLRQV
PRYLQJ WDUJHWV ZLWK DELOLW\ WR SURFHVV LPDJH
DYLRQLFVV\VWHPV
DQG HQKDQFHPHQW WR LPSURYH SHUIRUPDQFH DW
QLJKW DQG OLPLWHG YLVLELOLW\ FRQGLWLRQV 7KLV 0HGLFDO6DIHW\7HVW)DFLOLW\
DQDO\VLVZDVFDUULHGRXWIRU%KDUDW(OHFWURQLFV
0HGLFDO(OHFWURQLFVODERI(57/ 6 LVWKHOHDGODE
0LQLVWU\RI'HIHQFH1DQGDPEDNNDP&KHQQDL
LQ WKH FRXQWU\ IRU WHVWLQJ PHGLFDO HOHFWULFDO
'HYHORSPHQW$VVLVWDQFH HTXLSPHQWV   ,W KDV JRW DFFUHGLWDWLRQ IRU WHVWLQJ
PHGLFDOHOHFWULFDOHTXLSPHQWVDVSHU,(&
'HYHORSPHQW DVVLVWDQFH DQG FRPSOLDQFH WHVWLQJ
UGHGLWLRQDQGSURYLGHGVHUYLFHVIRUGHÀEULOODWRU
IDFLOLWLHV DUH H[WHQGHG WR LQGXVWULHV WR HQVXUH
(OHFWURFDUGLRJUDSK%HGVLGHPRQLWRUVDQG+LJK
GHYHORSHG SURGXFWV PHHWV 1DWLRQDO,QWHUQDWLRQDO
)UHTXHQF\6XUJLFDOGLDWKHUP\RIGLIIHUHQWKRVSLWDOV
VWDQGDUGV OLNH ,(& &,635  )&& 3URGXFW
LQDQGRXWVLGH.HUDOD
FRPPLWWHH DQG *RYHUQPHQW UHJXODWLRQV 7KH
IROORZLQJPDMRUSURGXFWVDUHWHVWHG 6RODU 3KRWR9ROWDLF 3DQHO DQG 3URGXFWV 7HVW
)DFLOLWLHV
¾ 3KRWRYROWDLFJULGWLHLQYHUWHUDVSHU&,635
&ODVV $ XVHG LQ 5HVLGHQFH  %XVLQHVV 1XPEHU RI 6RODU 3KRWRYROWDLF 0RGXOHV DQG
HVWDEOLVKPHQWVWRVHOOWKHLU(QHUJ\WRWKH8WLOLW\ SURGXFWV KDV EHHQ WHVWHG DV SHU LQWHUQDWLRQDO
JULG VWDQGDUG XVLQJ WHVW IDFLOLW\ HVWDEOLVKHG DW
(57/ (DVW  .RONDWD 7KH IDFLOLW\ LQFOXGHV 6XQ
¾ &RQWUROSDQHOIRU1XFOHDUUHDFWRUDVSHU&,635
6LPXODWRUIRURSWRHOHFWURQLFWHVWLQJRI6RODU3KRWR
&ODVV$
YROWDLF 0RGXOHV 7KH WHVW IDFLOLWLHV FRYHU WKH
¾ 'HÀEULOODWRU3XOVH2[\PHWHUDQG,&8%HGDV HOHFWULFDODQGRSWLFDOSHUIRUPDQFHRIWKHSURGXFWV
SHU&,635 ,(&VHULHV XQGHU D YDULHW\ RI HQYLURQPHQWDO FRQGLWLRQV
¾ /RQJ UDQJH 6RODU :L )L V\VWHP DV SHU 7(& PHFKDQLFDO ORDGLQJ HWF DV SHU DSSOLFDEOH
VWDQGDUGXVHGWRSURYLGHFRQQHFWLYLW\LQ5XUDO VWDQGDUGV7KHWHVWVFKHGXOHVHVWDEOLVKWKHTXDOLW\
DUHDVKLOO\7HUUDLQ7XQQHOVHWF DQG UHOLDELOLW\ RI WKH SURGXFWV IRU D ZLGH UDQJH RI
DSSOLFDWLRQHQYLURQPHQWV$VLPLODUWHVWIDFLOLW\KDV
¾ &DOLEUDWLRQ6HUYLFHV
DOVREHHQHVWDEOLVKHGDW(7'& %HQJDOXUX ,QRUGHU
¾ &DOLEUDWLRQDQG7HVWLQJRIRYHUQXPEHUVRI WRH[WHQGWKHIDFLOLW\DQHZ(7'& $MPHU KDVEHHQ
(OHFWURQLF (QHUJ\ 0HWHUV IRU WKH 7DPLO 1DGX HVWDEOLVKHGLQ3DOUD,QGXVWULDO$UHDWRVXSSRUWWKH


0LQLVWU\RI(OHFWURQLFV ,QIRUPDWLRQ7HFKQRORJ\ 0HLW<

LQGXVWU\ LQ WKLV VXQULVH VHFWRU %XLOGLQJ LV UHDG\ DVVHVVPHQWVDUHLQGLFDWHGEHORZ

PDQSRZHUKDVEHHQGHSOR\HGDQGWKHODERUDWRU\LV
y &DOLEUDWLRQ VHUYLFHV RI (7'& *XZDKDWL KDV
VWULYLQJWRSURFXUHWKHUHTXLVLWHWHVWLQJLQIUDVWUXFWXUH
EHHQDVVHVVHGIRUDFFUHGLWDWLRQIRUUHQHZDOE\
 &RQWLQXLQJ SDUWLFLSDWLRQ LQ 6SDFH WKH1DWLRQDO$FFUHGLWDWLRQ%RDUGIRU7HVWLQJDQG
3URJUDPPHV WKURXJK &RPSRQHQWV 6FUHHQLQJ &DOLEUDWLRQ/DERUDWRULHV 1$%/ LQFRQIRUPDQFH
3DFNDJHV 0RGXOHVWHVWLQJDQG(QYLURQPHQWDO WR ,62,(&  LQWHUQDWLRQDO VWDQGDUG IRU
WHVWLQJ DFFUHGLWDWLRQ LQ WKH ÀHOGV RI (OHFWUR7HFKQLFDO
7KHUPDO 0HFKDQLFDO  2SWLFDO FDOLEUDWLRQ
y 6FUHHQLQJ  RI &RPSRQHQWV &DUULHG RXW
VHUYLFHV 7KH ODE KDV DOVR SDUWLFLSDWHG LQ ,QWHU
6FUHHQLQJRI PRUHWKDQVHYHQW\ÀYHWKRXVDQG
/DERUDWRU\ &RPSDULVRQV ,/&  SURJUDPPH
FRPSRQHQWV ZKLFK LQFOXGHV  /&5 GHYLFHV
SHULRGLFDOO\ DFKLHYLQJ VDWLVIDFWRU\ TXDOLWDWLYH
'LVFUHWH GHYLFHV ,&V GLJLWDO  /LQHDU  RI
SHUIRUPDQFH OHYHO $OVR &DOLEUDWLRQ  (OHFWUR
GLIIHUHQWSDFNDJHVOHDGHGDVZHOODV60'VIRU
WHFKQLFDO  DQG (QYLURQPHQWDO WHVW IDFLOLW\ KDYH
7,)5DQG,QGLDQ6SDFH5HVHDUFKRUJDQL]DWLRQV
EHHQDFFUHGLWHGE\1$%/IRUDSHULRGRIDQRWKHU
YL] 966& /36& 09,7 DQG ,,68  4XDOLÀFDWLRQ
WZR\HDUV
WHVWVDUHEHLQJFDUULHGRXWUHJXODUO\IRUGLIIHUHQW
W\SHV RI FRPSRQHQWV IRU VSDFH DSSOLFDWLRQ 7UDLQLQJVHUYLFHV
6FUHHQLQJ RI 57' VHQVRUV DQG QHZ W\SHV RI
 ,QGLDQ ,QVWLWXWH RI 4XDOLW\ 0DQDJHPHQW SURYLGHV
7UDQVLHQW $EVRUSWLRQ =HQHUV KDV DOVR EHHQ
WUDLQLQJWRLQGXVWULHVDQGRUJDQL]DWLRQVLQWKHDUHD
FDUULHG RXW (57/ 7KLUXYDQDQWKDSXUDP  KDV
RI 4XDOLW\ 0DQDJHPHQW 6\VWHP ,62  
EHHQLGHQWLÀHGE\966&DVPDMRUWHVWFHQWUHIRU
/DERUDWRU\ 4XDOLW\ 0DQDJHPHQW 6\VWHP ,62
VFUHHQLQJRI60''HYLFHV
 ,QIRUPDWLRQ6HFXULW\0DQDJHPHQW6\VWHP
y (TXLSPHQW 7HVWLQJ 6WDFN OHYHO WHVWLQJ RI ,606  ,62   DQG DOVR IXQFWLRQV DV DQ
$GYDQFHG7HOHPHWU\6\VWHPXVHGLQ36/9*6/9 DSSURYHG 7UDLQLQJ 2UJDQL]DWLRQ UHFRJQL]HG E\
/DXQFK 9HKLFOHV KDV EHHQ LQLWLDWHG DQG PRUH ,5&$8.
WKDQVWDFNVKDYHEHHQHYDOXDWHG&RQWLQXLQJ
y &HQWUH IRU 5HODLELOLW\ &KHQQDL KDV FRQGXFWHG
7HVW (YDOXDWLRQRISRZHUPRGXOHV QRV DQG
WZR 1DWLRQDO OHYHO 5HOLDELOLW\ (QJLQHHULQJ RSHQ
'DWD $FTXLVLWLRQ XQLWV QRV  XVHG LQ *6/9
WUDLQLQJ SURJUDPV QDPHG ´&HUWLÀHG 5HOLDELOLW\
36/9 $FFUHGLWHG IRU HYDOXDWLRQ RI 1DYLJDWLRQ
3URIHVVLRQDO &53  3URJUDPµ GXULQJ WKLV \HDU
*XLGDQFH DQG &RQWURO 1*&  SDFNDJHV RI
7KHSURJUDPKDVEHHQGHVLJQHGZLWKODWHVWWRROV
ODXQFKYHKLFOHV
DQG WHFKQLTXHV SUDFWLFHG LQ 5HOLDELOLW\
y (QYLURQPHQWDO 7HVWLQJ 6FUHHQLQJ RI ,VRODWRUV (QJLQHHULQJ ZRUOGZLGH 1RQUHVLGHQW ,QGLDQV
XVHGIRUPRXQWLQJYDULRXV(OHFWURQLFSDFNDJHV ZKRZRUNLQ0LGGOH(DVWDQG(XURSHKDYHEHHQ
LQ*6/936/9ODXQFKYHKLFOHV UHJXODUO\SDUWLFLSDWLQJLQWKLVSURJUDP
 1DWLRQDO $FFUHGLWDWLRQV RI 7HVW DQG y (7'& +\GHUDEDG KDVDOVRSURYLGHG,606EHVW
&DOLEUDWLRQIDFLOLWLHV SUDFWLFHV WUDLQLQJ DW 0V %+(/ IRU SDUWLFLSDQWV
IURPDOOWKHVRXWKHUQ%+(/XQLWV$OVRDWUDLQLQJ
,W LV WKH FRQVWDQW HQGHDYRU RI 674& WR REWDLQ
SURJUDPZDVFRQGXFWHGIRU&HUWLÀHG 6RIWZDUH
DFFUHGLWDWLRQ RU UHFRJQLWLRQ RI WKHLU VHUYLFHV IURP
7HVW0DQDJHUIURPVRIWZDUHRUJDQL]DWLRQV
QDWLRQDO RU LQWHUQDWLRQDO ERGLHV  'HWDLOV RI PDMRU


 $QQXDO5HSRUW

$FWLYLWLHVLQ1RUWK(DVW5HJLRQ 1(5  'DWD&HQWUHV 6'& SURMHFWVLPSOHPHQWHGE\WKH

1RUWK (DVWHUQ VWDWHV WR DVVHVV WKH YDULRXV
(7'& *XZDKDWL DQG(7'& $JDUWDOD DUHWKHWZR
UHTXLUHPHQWV RI $XGLW IUDPHZRUNV  SURFHGXUHV
674& ODERUDWRULHV RSHUDWLQJ LQ WKH 1RUWK (DVW
,QIUDVWUXFWXUDO2 0SURFHVVDQGFRQWURO6HUYLFH
5HJLRQDQGH[WHQGLQJWKHYDULRXVWRVWDWHVRIWKH
OHYHO DJUHHPHQW 8VDJH 6HFXULW\ )XQFWLRQDOLW\ 
UHJLRQ7KHVHLQFOXGH7HVW &DOLEUDWLRQVHUYLFHVWR
4XDOLWDWLYH SDUDPHWHUV WRZDUGV LPSURYHPHQW RI
PRVW RI WKH 6PDOO 0HGLXP DQG /DUJH 6FDOH
TXDOLW\ RI 6'& VHUYLFHV (7'& *XZDKDWL DOVR
,QGXVWULHVFRYHULQJWKH,QGXVWULDOVHFWRUVOLNH²2LO 
FRQGXFWHG DVVHVVPHQW RI 6:$1 SURMHFW RI
1DWXUDO*DV5HÀQHULHV([SORUDWLRQXQLWV5DLOZD\V
0HJKDOD\D
3RZHU  *HQHUDWLRQ 7UDQVPLVVLRQ  'LVWULEXWLRQ
3DSHU &HPHQW  %XLOGLQJ PDWHULDO )RRG  $GPLQLVWUDWLYHPDWWHUV 674& 
%HYHUDJHV &RVPHWLFV &DEOH  &RQGXFWRUV
'HYHORSPHQW RI 6&  67V DQG :HDNHU VHFWLRQV
)HUWLOL]HU 3O\ZRRG &DUERQ 3URGXFWV 6WHHO DQG
(7'& +\GHUDEDG KDVFRQGXFWHGVHYHQEDWFKHV
6HUYLFH VHFWRUV OLNH ² $YLDWLRQ (QJLQHHULQJ 
RI MRERULHQWHG ORQJ WHUP WUDLQLQJ RQ ´,QGXVWULDO
&RQVWUXFWLRQ 7HOHFRPPXQLFDWLRQ $XWRPRELOH
$XWRPDWLRQ 3URJUDPPDEOH ORJLF FRQWUROOHUV 
6HUYLFH 0DLQWHQDQFHXQLWV5 'DQG7HVW/DEV
6&$'$ µ H[FOXVLYHO\ IRU 6&670LQRULW\ <RXWK 
+RVSLWDOV 3KDUPDFHXWLFDO  3DWKRORJLFDO
: R P H Q  & D W H J R U \  V W X G H Q W V  X Q G H U  0 H L W <
/DERUDWRULHVHWF
VSRQVRUVKLS
,QIRUPDWLRQ 7HFKQRORJ\ 7HVW  $VVHVVPHQW
,PSOHPHQWDWLRQRI5DM%KDVKD(7'& 0RKDOL KDV
6HUYLFHV LQ 1(5  ,QLWLDWLYHV KDYH EHHQ WDNHQ
UHFHLYHG7KLUG3UL]HIURP0LQLVWU\RI+RPH$IIDLUV
WRZDUGV IDFLOLWDWLQJ VHUYLFHV LQ WKH ÀHOG RI
'2/  LQ 2FW  IRU LPSOHPHQWDWLRQ RI RIÀFLDO
7HVWLQJ$VVHVVPHQW RI 6RIWZDUH $SSOLFDWLRQV
ODQJXDJH LQ 5HJLRQ ?<L
FDWHJRU\ RIÀFH RI 1RUWK
:HEVLWH:HE $SSOLFDWLRQV ,7 ,QIUDVWUXFWXUH XQGHU
,QGLD
YDULRXV H*RYHUQDQFH SURMHFWV OLNH ²:HEVLWH
4XDOLW\H'LVWULFW66'*63H)RUPV6'&6:$1  1DWLRQDO ,QVWLWXWH RI (OHFWURQLFV DQG
HWFEHLQJLPSOHPHQWHGLQWKH6WDWHVRI1(5HJLRQ ,QIRUPDWLRQ7HFKQRORJ\ 1,(/,7
(7'& *XZDKDWL  (7'& $JDUWDOD WRJHWKHU KDYH ,QWURGXFWLRQ
WHVWHGDERXWQRVRI:HEVLWHVFRUUHVSRQGLQJ
1,(/,7DERG\XQGHUWKHDGPLQLVWUDWLYHFRQWURORI
WR*RYW6HPL*RYWRUJDQLVDWLRQRIWKHFRXQWU\IRU
0HLW<LVDFWLYHO\HQJDJHGLQ&DSDFLW\%XLOGLQJDQG
WKHLU )XQFWLRQDOLW\  4XDOLW\ LQ FRPSOLDQFH WR WKH
6NLOO 'HYHORSPHQW LQ WKH DUHDV RI ,QIRUPDWLRQ
´ *,*:  *XLGHOLQHV )RU ,QGLDQ *RYHUQPHQW
7HFKQRORJ\ ,7  (OHFWURQLFV &RPPXQLFDWLRQ
:HEVLWHVµ (7'& *XZDKDWL DOVR LQLWLDWHG
7HFKQRORJLHV +DUGZDUH &\EHU /DZ &\EHU
6HFXULW\ 7HVW $VVHVVPHQW RI :HE $SSOLFDWLRQ LQ
6HFXULW\ ,35 *,6 &ORXG &RPSXWLQJ (6'0 H
FRPSOLDQFH WR VHFXULW\ UHTXLUHPHQWV RI 2:$63
:DVWH ,R7 H*RYHUQDQFH DQG UHODWHG YHUWLFDOV
LQWHUQDWLRQDO JXLGHOLQHV %HQHÀFLDULHV DUH WKH
1,(/,7RIIHUVFRXUVHVERWKLQWKH)RUPDODVZHOODV
*RYW368$XWRQRPRXV6RFLHW\(GXFDWLRQDO
WKH 1RQ)RUPDO VHFWRUV DQG LV DOVR RQH RI WKH
,QVWLWXWLRQ5HVHDUFK&HQWUHV RWKHURUJDQL]DWLRQRI
1DWLRQDO ([DPLQDWLRQ %RGLHV ZKLFK DFFUHGLWV
WKHFRXQWU\
LQVWLWXWHVRUJDQL]DWLRQVIRUWKHFRQGXFWRIFRXUVHV
(7'&*XZDKDWL (7'&$JDUWDODKDVDOVRFDUULHG LQ WKH 1RQ)RUPDO 6HFWRU  1,(/,7 LV DOVR WKH
RXW 7KLUG 3DUW\ $VVHVVPHQWVDXGLWV RI WKH 6WDWH SUHIHUUHGDJHQF\IRUPDQ\6WDWH*RYHUQPHQWVIRU


0LQLVWU\RI(OHFWURQLFV ,QIRUPDWLRQ7HFKQRORJ\ 0HLW<

UROOLQJRXW,7/LWHUDF\3URJUDPPHVIRULWVHPSOR\HHV LQWR DFFRXQW WKH QHHGV RI WKH LQGXVWU\ DQG

DQG WKH PDVVHV  7KH 1,(/,7 FRXUVHV KDYH DOVR WHFKQRORJLFDO WUHQGV DQG DUH DOVR UHWURÀWWHG ZLWK
EHHQUHFRJQL]HGE\PDQ\6WDWH*RYHUQPHQWVIRU VRIW VNLOOV FRPSRQHQWV OHDGLQJ WR HQKDQFHG
UHFUXLWPHQWSURPRWLRQRIHPSOR\HHV 7KH1,(/,7 HPSOR\PHQWRSSRUWXQLWLHV
FRXUVHV DUH UHYLVHG RQ UHJXODU LQ LQWHUYDOV WDNLQJ

1,(/,7 KDV HVWDEOLVKHG LWVHOI DV D SUHPLHU FDQGLGDWHV SHU DQQXP ZKLFK LQFOXGHV ZRPHQ
RUJDQL]DWLRQKDYLQJ3$1,1',$SUHVHQFHWKURXJKD UXUDO \RXWK DQG XQGHUSULYLOHJHG VHFWLRQV RI WKH
QHWZRUN RI  RZQ &HQWUHV ([WHQVLRQ FHQWUHV VRFLHW\ 6LQFHLQFHSWLRQ1,(/,7KDVWUDLQHGDERXW
ORFDWHG DW $JDUWDOD $L]DZO $MPHU $XUDQJDEDG  ODNK FDQGLGDWHV ([DPLQDWLRQV RI 'LJLWDO
&DOLFXW &KDQGLJDUK &KHQQDL 'HOKL *DQJWRN /LWHUDF\ SURJUDPV DUH FRQGXFWHG LQ WKH 2QOLQH
*RUDNKSXU *XZDKDWL 7H]SXU ,PSKDO ,WDQDJDU PRGHDQGGLJLWDOO\VLJQHGH&HUWLÀFDWHVDUHLVVXHG
-DPPX .RKLPD &KXFKX\LPODQJ .RONDWD WR VXFFHVVIXO FDQGLGDWHV 7LOO 
.RNUDMKDU /XFNQRZ 3DWQD 6KLPOD 6KLOORQJ  FDQGLGDWHV KDYH EHHQ LVVXHG GLJLWDOO\
6ULQDJDU /XQJOHL -RUKDW 5RSDU 6LOFKDU 7XUD VLJQHG H&HUWLÀFDWHV 7KH H&HUWLÀFDWHV DUH DOVR
3DVLJKDW &KXUDFKDQGSXU 5DQFKL 6HQDSDWL /HK OLQNHGZLWK'LJLWDO/RFNHULQUHVSHFWRIFDQGLGDWHV
.XUXNVKHWUD DQG $DGKDUVK &RPSXWHU 6DNVKDUWD DVVHVVHGXQGHU1'/0VFKHPH$VRQ
.HQGUDDW$ODZDOSXUZLWKLWV+HDGTXDUWHUVDW1HZ DERXWGLJLWDOO\VLJQHGHFHUWLÀFDWHVKDYH
'HOKL ,W LV DOVR ZHOO QHWZRUNHG WKURXJK  EHHQSXVKHGWRGLJLWDOORFNHURIWKHVWXGHQWVDQG
DFFUHGLWHG WUDLQLQJ LQVWLWXWLRQV IRU FRQGXFW RI 1,(/,7LVDPRQJWKHIRUHPRVWHGXFDWLRQDOLQVWLWXWH
2$%& /HYHOV RI FRXUVHV EHVLGHV D QHWZRUN RI LQWKHFRXQWU\WRLQVWLWXWLRQDOL]HWKHPHFKDQLVPLH
DERXWIDFLOLWDWLRQFHQWUHVIRUUROORXWRIGLJLWDO OLQNLQJRIH&HUWLÀFDWHVZLWK'LJLWDO/RFNHU
OLWHUDF\SURJUDPV
1,(/,7KDVDFKLHYHGKLJKJURZWKUDWHLQWKHODVW
$W SUHVHQW 1,(/,7 LV VNLOOLQJ DERXW  ODNK \HDUVZKLFKFDQEHPHDVXUHGIURPWKHIDFWWKDW
WKHLQFRPHRI1,(/,7KDVLQFUHDVHGIURPC&U


 $QQXDO5HSRUW

 WRC&U  7KHVXUSOXVRI EHHQVLJQHGZLWK,QGXVWULHV$JHQFLHVVXFKDV

1,(/,7KDVDOVRLQFUHDVHGIURPC&U   0RQVWHU&RP $PD]RQ :HE 6HUYLFHV $:6 
WRC&U   8QGHU WKH 0R8 ZLWK $PD]RQ  1,(/,7
VWXGHQWVDQG1,(/,7IDFXOW\ZRXOGEHSURYLGHG
6RPH1RWDEOH$FKLHYHPHQWV
IUHHDFFHVVWRPRUHWKDQVHUYLFHV
¾ ,Q OLQH ZLWK JXLGHOLQHV LVVXHG E\ 0HLW< IRU
¾ 0RGHO&DUHHU&HQWUHVKDYHEHHQHVWDEOLVKHGLQ
SURPRWLRQRIPRELOHJRYHUQDQFH P*RYHUQDQFH 
,PKDO /HK DQG .RONDWD ZLWK IXQGLQJ IURP
1,(/,7KDVODXQFKHG0RELOH$SSVRQYDULRXV
'LUHFWRUDWH*HQHUDORI(PSOR\PHQW0LQLVWU\RI
WRSLFVRI&&&FRXUVHLQODQJXDJHVVRWKDW
/DERXU  (PSOR\PHQW *R,  XQGHU 1DWLRQDO
WKHUHDFKFDQEHHQKDQFHGHVSHFLDOO\LQUXUDO
&DUHHU 6HUYLFHV 6FKHPH RI *RYHUQPHQW RI
DUHDV WR DOORZ UXUDO VWXGHQWV DFFHVV 1,(/,7
,QGLD-RE)DLUVKDYHEHHQRUJDQLVHGE\0RGHO
FRXUVHVWKURXJK6PDUW3KRQHV
&DUHHU&HQWUHVDOUHDG\HVWDEOLVKHGDW&DOLFXW
¾ 6NLOO2ULHQWHGFRXUVHVRI1,(/,7KDYHEHHQ *RUDNKSXU$XUDQJDEDG 6ULQDJDU,QWKHODVW
DOLJQHG ZLWK 164) DW GLIIHUHQW OHYHOV UDQJLQJ RQH \HDU PRUH WKDQ  FDQGLGDWHV KDYH
IURP /HYHO  WR  $QRWKHU  6NLOO 2ULHQWHG PREDOL]HG WKURXJK  MRE IDLUV RXW RI ZKLFK
&RXUVHV DUH LQ SLSHOLQH IRU DOLJQPHQW ZLWK DERXW  FDQGLGDWHV KDYH EHHQ VKRUWOLVWHG
164) IRU HPSOR\PHQW E\ PRUH WKDQ  HPSOR\HUV
¾ ,QOLQHZLWKWKHYLVLRQRI+RQ·EOH0LQLVWHU ( ,7 ZKRKDGDOVRSDUWLFLSDWHGLQWKHMREIDLUV
/ -  FRXUVHV RQ %DVLF /LWHUDF\ LQ &\EHU ¾ 1,(/,7&HQWUHV$FFUHGLWHG&HQWUHV)DFLOLWDWLRQ
6HFXULW\UDQJLQJIURPWRKRXUVGXUDWLRQ &HQWUHV DUH FRQGXFWLQJ 'LJL 'KDQ 0HODV
KDYHEHHQODXQFKHG $ZDUHQHVV 3URJUDPPHV RQ 'LJLWDO 3D\PHQWV
¾ ,Q OLQH ZLWK 1,(/,7·V LQLWLDWLYH WR VLPSOLI\ DQGVRIDUKDYHWUDLQHGVHQVLWLVHGPRUHWKDQ
SURFHGXUHVWKURXJKSURFHVVUHHQJLQHHULQJDQ ODNKVWXGHQWVFLWL]HQVDQGPHUFKDQWV
2QOLQH ([SHUW (PSDQHOPHQW 6\VWHP IRU ¾ 1,(/,7KDVFRQGXFWHGUHFUXLWPHQWH[DPLQDWLRQ
HPSDQHOPHQW RI H[SHUWV LQ D WUDQVSDUHQW IRU WKH SRVW RI 6FLHQWLVW %  IRU  0HLW< 674&
PDQQHUZDVODXQFKHGE\6HFUHWDU\0HLW<DQG &(57,Q1,(/,7KDVDOVRSURFHVVHGUHFUXLWPHQW
&KDLUSHUVRQ0DQDJHPHQW%RDUG1,(/,7 IRUÀOOLQJXSRISRVWVRI6 7DQG1RQ6 7
¾ H&RQWHQWV GHYHORSHG LQ (QJOLVK IRU YDULRXV FDGUHIRULWV&HQWUHV
1,(/,7 FRXUVHV DQG WKH VDPH DUH DOVR EHLQJ ¾ 6PDUW&ODVVURRP3URMHFWKDVEHHQLPSOHPHQWHG
EHLQJ FRQYHUWHG LQWR +LQGL DQG UHJLRQDO E\1,(/,76ULQDJDULQDERXWVFKRROVXQGHU
ODQJXDJHV VXFK DV 7DPLO 7HOXJX %DQJOD 66$506$6FKHPHVRI*RYHUQPHQWRI- .
*XMDUDWL0DOD\DODP.DQQDGDHWF
¾ 6PDUW 9LUWXDO &ODVVURRP IDFLOLW\ KDV EHHQ
¾ WKH IRXQGDWLRQ VWRQH RI WKH QHZ $FDGHPLF H[WHQGHGLQDGGLWLRQDO1,(/,7&HQWUHVDQG
%ORFN DW 1,(/,7 ,PSKDO ZDV ODLG RQ $SULO  WKXV WKH IDFLOLW\ QRZ H[LVW DOPRVW DOO 1,(/,7
IROORZHGE\LQDXJXUDWLRQRI0RGHO&DUHHU &HQWUHV 7KHIDFLOLW\LVEHLQJXVHGH[WHQVLYHO\
&HQWUH IRU FRQGXFWLQJ YLGHR FRQIHUHQFLQJ IRU EHWWHU
¾ 7RHQKDQFHWKHHPSOR\DELOLW\RI1,(/,7VWXGHQWV FRRUGLQDWLRQ DPRQJ 1,(/,7 &HQWUHV DQG +4
DQRQÀQDQFLDODQGQRQH[FOXVLYH0R8VKDYH DQG KDV UHVXOWHG LQ VDYLQJ RI WUDYHOOLQJ WLPH


0LQLVWU\RI(OHFWURQLFV ,QIRUPDWLRQ7HFKQRORJ\ 0HLW<

PRQH\DQGDOVRLQHIÀFLHQWDQGIDVWHUGHFLVLRQ VFKHPH 2Q VXFFHVVIXO RI H[DPLQDWLRQV

PDNLQJ7KHVHWXSLVDOVREHLQJXVHGE\WKH FDQGLGDWHV DUH DOVR LVVXHG GLJLWDOO\ VLJQHG
1,(/,7 &HQWUHV IRU FRQGXFWLQJ WKHLU WUDLQLQJ FHUWLÀFDWHVLQWKH2QOLQHPRGHZKLFKEHDUVD
VHVVLRQVLQPRUHSURIHVVLRQDOHIIHFWLYHZD\ 45FRGHVRWKDWWKHRQOLQHFHUWLÀFDWHVFDQDOVR
EHYHULÀHGLQWKH2QOLQHPRGH
¾ 7R EURDGHQ WKH UHDFK RI 1,(/,7 ZLWK WKH
REMHFWLYHRIDWOHDVWRQHFHQWUHLQHDFK6WDWH ¾ 1,(/,7 KDV DFWLYHO\ SDUWLFLSDWHG LQ WKH 9LNDV
QHZ 1,(/,7 &HQWUH KDV EHHQ HVWDEOLVKHG DW 3DUY &HOHEUDWLRQV DW  ORFDWLRQV QDPHO\
5RSDU .XUXNVKHWUD0RUH&HQWUHVDUHSURSRVHG 0XPEDL 0DWKXUD -RGKSXU .DNLQDGD
WR EH VHWXS DW $\RGK\D  %KXEDQHVKZDU  3DOL &KLQGZDUD DQG -DPVKHGSXU OHG E\ +RQ·EOH
+DULGZDU $OPRUD -DODQGKDU 6ULNDNXODP  0R( ,7 DQG / - WR VKRZFDVH 'LJLWDO ,QGLD
7LUXSDWL LQLWLDWLYHV DQG WKH DFKLHYHPHQWV RI WKH
*RYHUQPHQWRI,QGLD
¾ ,QDXQLTXHLQLWLDWLYHD6WXG\&HQWUHKDVEHHQ
HVWDEOLVKHGDW%DUDPXOODK- .E\1,(/,7MRLQWO\ ¾ $W 1,(/,7 LQWHUQDO FDSDFLWLHV DUH EHLQJ
ZLWKWKH,QGLDQ$UP\IURPLWVRZQUHVRXUFHVWR DXJPHQWHGWKURXJKWUDLQLQJRI0DVWHU7UDLQHUV
PDLQVWUHDP ORFDO \RXWK DQG ZRPHQ WKURXJK LQ QLFKH DUHDV VXFK DV 0RELOH $SSOLFDWLRQ
VNLOOGHYHORSPHQW 'HYHORSPHQW&ORXG&RPSXWLQJ,R7H:DVWH
&\EHU6HFXULW\0RELOH+DQGVHW'HVLJQHWFLQ
¾ 1,(/,7 KDV PDGH LWV IRUD\ LQ WKH GRPDLQ RI
V\QHUJ\ ZLWK LQGXVWU\ OHDGHUV OLNH $PD]RQ
6RFLDO0HGLDDQGLQWKLVUHJDUGWKHRIÀFLDOWZLWWHU
*RRJOH,QWHO0LFURVRIWHWF
KDQGOH #1,(/,7,QGLD KDV EHHQ PDGH
RSHUDWLRQDO ZLWK HIIHFW IURP 0D\   ¾ 8 Q G H U  W K H  0 H L W < · V  6 F K H P H  R Q  6 N L O O
7ZHHWVDUHSRVWHGRQGDLO\EDVLVDQGWKHRIÀFLDO ' H Y H O R S P H Q W  L Q  ( 6 ' 0  D E R X W       
WZLWWHU KDQGOH RI 1,(/,7 LV EHLQJ IROORZHG E\ FDQGLGDWHV KDYH EHHQ HQUROOHG EHWZHHQ
PRUHWKDQXVHUV7KHWZHHWVSRVWHGDWWKH DQGRXWRIZKLFK
KDQGOH KDYH DOVR EHHQ UHWZHHWHG E\ VHQLRU FDQGLGDWHV KDYH EHHQ FHUWLÀHG DQG 
*RYHUQPHQW 2IÀFHUV 3,% &DELQHW 0LQLVWHUV FDQGLGDWHVKDYHEHHQSODFHG%HVLGHVIRXU  
DQG+RQ·EOH30 :RUNVKRSVKDYHEHHQFRQGXFWHGDQGIRXU  
0R8VKDYHDOVREHHQHVWDEOLVKHGZLWK6WDWHV
¾ 1,(/,7KDVEHHQDZDUGHGDSURMHFWRQH:DVWH
PDQDJHPHQW IRU *RYHUQPHQW 2IÀFLDOV XQGHU ¾ $VDSDUWRIFDSDFLW\EXLOGLQJSURMHFWIXQGHGE\
'LJLWDO,QGLDE\0HLW<,QWKLVUHJDUGWUDLQLQJRI 0HLW<1,(/,7KDGVHQWDWHDPRI2IÀFHUVWR
1,(/,7 0DVWHU 7UDLQHUV KDV DOVR EHHQ 7DLZDQ IRU D GD\ 3UDFWLFDO +DQGVRQ IRU
FRPSOHWHGDQGWUDLQLQJRI*RYHUQPHQW2IÀFHUV 0RELOH+DQGHVW'HVLJQ(QJLQHHUVWRSURPRWH
LQLGHQWLÀHG6WDWHVLVLQSURJUHVV 0DNHLQ,QGLD 7KHWUDLQLQJZDVFRQGXFWHGDW
,QWHUQDWLRQDO 7UDGH ,QVWLWXWH 0LQLVWU\ RI
¾ 1,(/,7 DV RQH RI WKH DXWKRUL]HG H[DPLQDWLRQ
(FRQRPLF $IIDLUV +VLQFKX 7DLZDQ LQ
DJHQF\ XQGHU 1'/0 ',6+$  LV FRQGXFWLQJ
FROODERUDWLRQ ZLWK 0LQLVWU\ RI (OHFWURQLFV 
H[DPLQDWLRQVLQWKH2QOLQHPRGHZLWKELRPHWULF
,7 0HLW<  ,QGLD &HOOXODU $VVRFLDWLRQ ,&$  DQG
HQDEOHG$DGKDDUDXWKHQWLFDWLRQRIFDQGLGDWHV
0HGLDWHN
6RIDULWKDVFRQGXFWHGH[DPLQDWLRQVRIDERXW
 FDQGLGDWHV XQGHU WKH 1'/0',6+$ ¾ 1,(/,7LQFROODERUDWLRQZLWK&$,7LVH[SORULQJWKH


 $QQXDO5HSRUW

SRVVLELOLW\RIFUHDWLQJV\QHUJ\WRRQERDUGVHOI SURJUDPPH LQ YDULRXV YHUWLFDOV VXFK DV 9/6,

RUJDQLVHGVPDOOPHGLXPEXVLQHVVHVWUDGHUV DQG (PEHGGHG +DUGZDUH 'HVLJQ 2QH $6,&
RQ'LJLWDO3D\PHQWLQLWLDWLYHVDFURVV,QGLD 'HVLJQDQG9HULÀFDWLRQDQG(PEHGGHG²5HDO
7LPH 6\VWHPV  7KHVH FRXUVHV DUH EHLQJ
¾ 1,(/,7 KDV GHYHORSHG DQ LQVWLWXWLRQDOL]HG
RIIHUHGDW1,(/,7&HQWUHVDQGDUHDOVREHLQJ
PHFKDQLVPE\SXWWLQJWHFKQRORJ\LQWRXVHIRU
H[WHQGHGWR,QVWLWXWLRQV'HHPHG8QLYHUVLWLHV
PDNLQJSD\PHQWVLQWKH'LJLWDO0RGHLQUHVSHFW
2UJDQL]DWLRQVZKRDUHPHHWLQJWKHFULWHULDRQ
RI DFWLYLWLHV FRQQHFWHG ZLWK SD\PHQWV DQG
UHTXLUHGLQIUDVWUXFWXUH
UHFHLSWV$OOSD\PHQWWR9HQGRUVDQG6XSSOLHUV
DUHEHLQJPDGHRQO\WKURXJK1()757*6DQG ¾ 1,(/,7 /XFNQRZ KDV FRQGXFWHG 'LJLWDO
LQWKHODVWWZR\HDUVLWKDVEHHQHQVXUHGWKDWDOO 0DUNHWLQJ &RXUVH IRU ¶&KLNDQNDUL· ZRUNHUV 
VXFK SD\PHQWV DUH PDGH RQO\ LQ WKH GLJLWDO ORFDODUWLVDQVHWFWRHPSRZHUWKHPWRPDUNHW
PRGH GLUHFWO\ WR WKH EDQN DFFRXQW RI WKH WKHLU SURGXFWV LQ WKH 2QOLQH PRGH WKURXJK H
EHQHÀFLDU\8VHRI&DVKDVDPRGHIRUPDNLQJ &RPPHUFHSRUWDOV
SD\PHQW WR YHQGRUVVXSSOLHUV KDV EHHQ
¾ 1,(/,7$XUDQJDEDGVWDUWHGD'RFWRUDWH 3K' 
GLVFRQWLQXHG VLQFH  $ERXW  RQOLQH
3URJUDPPH LQ (QJLQHHULQJ DQG 7HFKQRORJ\
WUDQVDFWLRQVKDYHEHHQSURFHVVHGIRUDYDOXHRI
$ERXW  6FKRODUV KDYH DOUHDG\ EHHQ
DERXWCFURUHLQWKH\HDU
UHJLVWHUHG
¾ 1,(/,7KDVUHOHDVHGVFKRODUVKLSWRDURXQG
5 ',QQRYDWLRQ 'HVLJQ
FDQGLGDWHVIURPRZQUHVRXUFHVRQFRPSOHWLRQ
RI2$%&OHYHO,7&RXUVHVXQGHUWKH1,(/,7 V ´(VWDEOLVKPHQWRIDQ$QWL6SDP&RRUGLQDWLRQ
6FKRODUVKLS 6FKHPH IRU 6&67(:63+ &HQWUHµ 7KH SURMHFW LV EHLQJ LPSOHPHQWHG E\
)HPDOHFDQGLGDWHV6FKRODUVKLSSD\PHQWVDUH 1,(/,7,PSKDODQG*XZDKDWLZLWKÀQDQFLDOVXSSRUW
EHLQJ PDGH WKURXJK $DGKDU %DVHG 'LUHFW RI 5V  ODNK E\ 0HLW< RYHU D SHULRG RI 
%HQHÀW7UDQVIHU '%7  PRQWKVZLWKDQREMHFWLYHWRHVWDEOLVKDQDQWLVSDP
IDFLOLW\ DQG GHYHORS D IUDPHZRUN IRU FROOHFWLRQ
¾ $Q ,QWHUQHW RI 7KLQJV ,R7  /DE KDV EHHQ
DQDO\VLVDQGH[FKDQJHRILQIRUPDWLRQDERXWVSDP
HVWDEOLVKHG DW 1,(/,7 &DOLFXW ZKLFK LV
PDLOV  )RU WKLV SXUSRVH GLVWULEXWHG VSDPERWV
HTXLSSHG ZLWK ,QWHO *DOLOHR %RDUGV DQG $50
HPXODWLQJ RSHQ UHOD\ PDLO VHUYHUV ZLOO EH VHWXS
&RUWH[0LFURFRQWUROOHU%RDUGVZLWKWKHVXSSRUW
7KHVSDPPDLOVFROOHFWHGZLOOEHDQDO\VHGWRÀQG
RI,QWHO,QGLD7KH3RVW*UDGXDWH'LSORPDLQ,R7
RXW WKH RULJLQ RI VXFK PDLOV DQG FODVVLÀHG LQWR
0RQWKV LVSUHVHQWO\EHLQJRIIHUHGE\1,(/,7
FDWHJRULHV  %DVHG RQ WKH DQDO\VLV D VKDUDEOH
¾ 5HJLVWUDWLRQVLQ1,(/,72$%/HYHO,7&RXUVHV GDWDEDVHDVSHUWKHLQWHUQDWLRQDOSUDFWLFHVDQGWKH
KDYHEHHQLQFUHDVHGVLJQLÀFDQWO\FRPSDUHGWR UHSRUW ZLOO EH VKDUHG ZLWK VWDNHKROGHUV LQFOXGLQJ
WKHSUHYLRXV\HDU0RUHWKDQODNKFDQGLGDWHV &(57,Q
KDYH EHHQ UHJLVWHUHG LQ 'LJLWDO /LWHUDF\
´,QGLJHQRXV &RORXU 'RSSOHU 8OWUDVRXQG
&RXUVHV
6FDQQHUZLWK31'7&RPSOLDQFHµ7KHSURMHFWLV
¾ &RQVLGHULQJ WKH PDQSRZHU DQG LQIUDVWUXFWXUH EHLQJLPSOHPHQWHGE\1,(/,7&DOLFXWZLWKÀQDQFLDO
UHTXLUHPHQW LQ (6'0 VHFWRU 1,(/,7 &DOLFXW VXSSRUWRICODNKE\0HLW<RYHUDSHULRGRI
ODXQFKHG $OO ,QGLD 3RVW *UDGXDWH 'LSORPD WKUHH \HDUV ZLWK DQ REMHFWLYH WR GHVLJQ DQG


0LQLVWU\RI(OHFWURQLFV ,QIRUPDWLRQ7HFKQRORJ\ 0HLW<

GHYHORSPHQW RI LQGLJHQRXV FRORXU 'RSSOHU ¾ 7R HTXLS VFKRRO \RXWKV DQG ZRPHQ ZLWK
8OWUDVRXQG 6FDQQHU 3URWRW\SH ZLWK 31'7 WHFKQLFDOVNLOOVWKHUHE\ZLGHQLQJWKHVFRSHRI
FRPSOLDQFH HPSOR\PHQW RSSRUWXQLWLHV E\ HTXLSSLQJ WKH
\RXWKZLWKFRPSXWHUDQGVNLOOHQKDQFHPHQWLQ
&DSDFLW\%XLOGLQJSURMHFWV
WKHÀHOGRI,QIRUPDWLRQ7HFKQRORJ\
´&RXUVH RQ &RPSXWHU (GXFDWLRQ LQ 5XUDO
¾ %ULGJHWKHJDSLHWKHWHFKQRORJ\VKLIWE\JLYLQJ
,QGLDµ IRU 7UDLQLQJ DQG &HUWLÀFDWLRQ RI RQH ODNK
PXFKQHHGHGVSHFLDOFRPSXWHUHGXFDWLRQDQG
&RPPRQ6HUYLFH&HQWUH &6& 2SHUDWRUV9LOODJH
WUDLQLQJ
/HYHO (QWUHSUHQHXUV 9/(  LQ HYHU\ VWDWH RI WKH
FRXQWU\ZLWKÀQDQFLDOVXSSRUWRICODNKE\ ¾ 'HYHORS D WHFKQRORJ\OLWHUDWH VRFLHW\ E\
0HLW<  8QGHU WKH SURMHFW D WRWDO RI  9/(V KHOSLQJ WDUJHW JURXSV WR SDUWLFLSDWH DQG
ZRXOGEHFHUWLÀHGIRU&RXUVHRQ&RPSXWHU&RQFHSWV EHFRPLQJ EHWWHU LQIRUPHG DQG ZLWK SRZHU WR
&&&  7KHVHFHUWLÀHG9/(VPD\SURYLGHYDULRXV FRPPXQLFDWHDQGLQWHUDFW
HGXFDWLRQDOVHUYLFHVDWWKHLU&6&ZKLFKZLOOSURYLGH
 ´6HWWLQJ XS RI 0HGLFDO (OHFWURQLFV
WKHPDUHJXODUVRXUFHRILQFRPHDSDUWIURPFUHDWLQJ
/DERUDWRU\µ7KHSURMHFWLVEHLQJLPSOHPHQWHGE\
JRRGZLOO FUHGLELOLW\ LQ WKHLU FRPPXQLW\  7KH
1,(/,7*XZDKDWLDWLWV6LOFKDU([WHQVLRQ&HQWUHZLWK
VFKHPHLVLQOLQHZLWKWKH*RYHUQPHQW·V3ROLF\WR
ÀQDQFLDO VXSSRUW RI C ODNK E\ 0HLW< RYHU D
LPSURYH HPSOR\PHQW RSSRUWXQLWLHV IRU WKH UXUDO
SHULRG RI WKUHH \HDUV ZLWK DQ REMHFWLYH WR VHW XS
SRSXODWLRQ,WZLOOKHOSLQDFKLHYLQJWKHREMHFWLYHRI
0HGLFDO(OHFWURQLFV5 '/DERUDWRU\DW6LOFKDU(&
PDNLQJ RQH FLWL]HQ LQ HYHU\ KRXVHKROG GLJLWDOO\
IRUXQGHUWDNLQJUHSDLUDQGPDLQWHQDQFHRI0HGLFDO
OLWHUDWH
(OHFWURQLFV (TXLSPHQW RI YDULRXV KRVSLWDOV LQ
´(PSRZHULQJ:RPHQLQ5XUDO,QGLDWKURXJK $VVDPVRDVWRVROYHWKHPDMRUSUREOHPVIDFHGE\
'LJLWDO/LWHUDF\ :'/3 µZLWKÀQDQFLDOVXSSRUWRI WKH KRVSLWDOV DQG SDWLHQWV GXH WR QRQRSHUDEOH
CODNKE\0HLW<ZLWKDQDLPDWWUDLQLQJDQG GHIHFWLYHKRVSLWDOHTXLSPHQW
HPSRZHULQJUXUDOZRPHQRQWKHFRXUVHRI
  ´ 6 H W W L Q J  X S  R I  0 H G L F D O  ( O H F W U R Q L F V
%DVLF&RPSXWHU&RQFHSWV %&& WRDFTXLUHGLJLWDO
/DERUDWRU\ YLGH $GPLQLVWUDWLYH $SSURYDO 1R
OLWHUDF\ VNLOOV DQG HQDEOH WKHP WR IXUWKHU WKHLU
  0( +,GWµ7KHSURMHFWLV
HGXFDWLRQJDLQHPSOR\PHQWKHOSVWDUWDQGEXLOG
EHLQJLPSOHPHQWHGE\1,(/,7.RKLPDZLWKÀQDQFLDO
WKHLU RZQ EXVLQHVV VHFXUH WKHLU OLYHOLKRRGV DQG
VXSSRUWRICODNKE\0HLW<RYHUDSHULRGRI
EHFRPHVRFLDOO\DQGSROLWLFDOO\DFWLYH
WKUHH \HDUV ZLWK DQ REMHFWLYH WR VHW XS 0HGLFDO
 ´(PSRZHULQJXQGHUSULYLOHJHG 67 \RXWKV (OHFWURQLFV 5 ' ODERUDWRU\ IRU UHSDLULQJ DQG
DQG ZRPHQ RI IRXU EDFNZDUG GLVWULFWV RI PDLQWHQDQFHRI0HGLFDO(OHFWURQLFV(TXLSPHQWRI
1DJDODQGWKURXJK,&7VNLOOVWUDLQLQJµ YDULRXV+RVSLWDOVLQ1DJDODQGDQGDOVRWRSURYLGH
WUDLQLQJWR3DUDPHGLFDO 0HGLFDOVWDIIRIYDULRXV
7KHSURMHFWLVEHLQJLPSOHPHQWHGE\1,(/,7.RKLPD
*RYHUQPHQW DV ZHOO DV 3ULYDWH +RVSLWDOV RI
ZLWKÀQDQFLDOVXSSRUWRICODNKE\0HLW<RYHU
1DJDODQG
DSHULRGRIPRQWKVZLWKDQREMHFWLYHWR
 ´&UHDWLQJ 0DVV &\EHU 6HFXULW\ $ZDUHQHVV
¾ 7RXSOLIWWKHRYHUDOOTXDOLW\RIOLIHRIWDUJHWJURXSV
DPRQJ VFKRROV FROOHJHV  *RYHUQPHQW
RI %DFNZDUG 7ULEHV RI 1DJDODQG 6FKHGXOHG
(PSOR\HHV WKURXJK DSSURSULDWH WUDLQLQJ DQG
7ULEHV LQ1DJDODQG


 $QQXDO5HSRUW

FDPSDLJQPHFKDQLVPLQ1(6WDWHVRI0DQLSXU LPSOHPHQWHG E\ 1,(/,7 &DOLFXW MRLQWO\ ZLWK $PULWD

 6LNNLPµ 7KH SURMHFW LV EHLQJ LPSOHPHQWHG E\ 9LVKZD 3HHWKDP .ROODP ZLWK ÀQDQFLDO VXSSRUW RI
1,(/,7,PSKDODQG*DQJWRNZLWKÀQDQFLDOVXSSRUWRI CODNKE\0HLW<RYHUDSHULRGRIWKUHH\HDUV
CODNKE\0HLW<RYHUDSHULRGRIPRQWKV ZLWKDQREMHFWLYHRI1,(/,7WRSURYLGHIUHHWUDLQLQJ
ZLWKDQREMHFWLYHWRDGGUHVVWKHJDSVZLWKUHVSHFW DQGFHUWLÀFDWLRQWRGHVHUYLQJFDQGLGDWHVEHORQJLQJ
WR&\EHU6HFXULW\DZDUHQHVVRI6WDWHVLQWKH1RUWK WR 67 SRSXODWLRQ VR DV WR LQFUHDVH WKHLU
(DVWHUQ5HJLRQRIWKHFRXQWU\ HPSOR\DELOLW\ LQ *RYHUQPHQW DQG 3ULYDWH 6HFWRU
2EMHFWLYH RI $PULWD LV WR EXLOG D PRGHO DQG
 ´(QKDQFHPHQW RI &\EHU )RUHQVLF /DE IRU
PHWKRGRORJ\ IRU HIIHFWLYH OHDUQLQJ IRU VRFLDO
DGYDQFHG WUDLQLQJ WR ODZ HQIRUFHPHQW
DZDUHQHVVDQG$&&WUDLQLQJLQ0DOD\DODPDQGSLORW
DJHQFLHVWRKDQGOHHPHUJLQJF\EHUFULPHVDQG
LW LQ 7ULEDO +DPOHWV ZKHUH FRQQHFWLYLW\ LV QRW
FDSDFLW\EXLOGLQJRI\RXWKVLQWKHDUHDRIF\EHU
DYDLODEOH
VHFXULW\ LQ 1( 6WDWHVµ  7KH SURMHFW LV EHLQJ
LPSOHPHQWHG E\ 1,(/,7 .RKLPD ZLWK ÀQDQFLDO ´&DSDFLW\%XLOGLQJ3URJUDPPHIRUFUHDWLQJ
VXSSRUWRICODNKE\0HLW<RYHUDSHULRGRI HUHDGLQHVV RI WKH 67 <RXWK RI 1( 6WDWH DQG
PRQWKV ZLWK DQ REMHFWLYH WR SURYLGH DGYDQFHG 6WDWH *RYHUQPHQW (PSOR\HHVµ  7KH SURMHFW
IRUHQVLFWUDLQLQJWRWKHODZHQIRUFHPHQWDJHQFLHVLQ LPSOHPHQWHG E\ 1,(/,7 .RKLPD ZLWK ÀQDQFLDO
WKH QHZ HPHUJLQJ F\EHU WKUHDWV DQG SURSHU VXSSRUWRI CODNKE\0HLW<RYHUDSHULRGRI
LQYHVWLJDWLRQ WKHUHRI WR PLWLJDWH WKH F\EHU FULPHV WZR\HDUVZLWKDQREMHFWLYHWRVSUHDGRI,7FXOWXUH
ULVLQJLQWKH1(6WDWHVDQGWRSURYLGHWUDLQLQJRQ DQGEULGJHGLJLWDOJDSLQXVLQJFRPSXWHUDWEDVLF
FHUWLÀFDWHFRXUVHLQWKHDUHDRIF\EHUVHFXULW\WRWKH OHYHO LQ RUGHU WR GHDO ZLWK HOHFWURQLF VHUYLFHV
<RXWKV RI 1( 6WDWHV DQG LPSOHPHQWDWLRQ RI WKH SURJUDPPHV DQG WR FRQGXFW VKRUW WHUP WUDLQLQJ
9LVXDOL]DWLRQ 7HFKQRORJ\ LQ FRPSXWHU IRUHQVLF  ZRUNVKRSLQH*RYHUQDQFHIRUDZDUHQHVVFUHDWLRQ
F\EHUVHFXULW\ODE DERXW YDULRXV H*RYHUQDQFH VHUYLFHV DPRQJ 67
<RXWKDQG6WDWH*RYWRIÀFLDOV
´&DSDFLW\ %XLOGLQJ IRU HPSRZHUPHQW RI 6&
FDQGLGDWHVRQ,&7DW&RRFK%HKDUGLVWULFWRI ´7UDLQLQJ RI 6& 67 VWXGHQWV LQ &DSDFLW\
:HVW%HQJDOµ7KHSURMHFWLVEHLQJLPSOHPHQWHG %XLOGLQJ IRU H*RYHUQDQFH $SSOLFDWLRQVµ 7KH
E\1,(/,7.RONDWDZLWKÀQDQFLDOVXSSRUWRI C SURMHFWLVEHLQJLPSOHPHQWHGE\1,(/,7,PSKDOZLWK
ODNKE\0HLW<RYHUDSHULRGRIWZR\HDUV H[WHQGHG ÀQDQFLDO VXSSRUW RI C  ODNK E\ 0HLW< RYHU D
IRUVL[PRQWKVWLOO'HFHPEHU ZLWKDQREMHFWLYH SHULRGRIWKUHH\HDUVZLWKDQREMHFWLYHWRWUDLQ6&67
WRHVWDEOLVKVPDUWPRGH,7EDVHG5HVRXUFH&HQWUH VWXGHQWV RI 0DQLSXU LQ ,7  H*RYHUQDQFH
DW'LVWULFW:HOIDUH'HSDUWPHQW&RRFK%HKDU:HVW $SSOLFDWLRQVLQORFDWLRQVRI0DQLSXUVRWKDWHLWKHU
%HQJDO DQG WR GHYHORS  ,7 VNLOOHG UHVRXUFH WKH\FDQEHHPSOR\HGRUVWDUWWKHLURZQEXVLQHVVWR
PHPEHUVIURP6&FRPPXQLW\E\LPSDUWLQJWUDLQLQJ EH DFKLHYHG DV SHU UHFRPPHQGDWLRQV RI VW
LQ1,(/,7(OHFWURQLF6\VWHP0DQXIDFWXULQJ(60 :RUNLQJ*URXSPHHWLQJKHOGRQVW-DQXDU\
FRXUVH 19(4) FHUWLÀHG (OHFWURQLF 3URGXFWLRQ
 ´&DSDFLW\ %XLOGLQJ LQ WKH DUHDV RI
7HFKQLFLDQ/HYHO,9 
(OHFWURQLF 3URGXFW 'HVLJQ DQG 3URGXFWLRQ
´,76NLOOVDQGH,QFOXVLRQWKURXJKORZFRVW 7HFKQRORJ\µ7KHSURMHFWLVEHLQJLPSOHPHQWHGE\
DFFHVVGHYLFHEDVHGDZDUHQHVVSURJUDPVIRU 1,(/,7 $XUDQJDEDG DQG &KHQQDL ZLWK ÀQDQFLDO
6FKHGXOHG7ULEHVRI.HUDODµ7KHSURMHFWLVEHLQJ VXSSRUWRI0HLW<RYHUDSHULRGRIÀYH\HDUVZLWKDQ


0LQLVWU\RI(OHFWURQLFV ,QIRUPDWLRQ7HFKQRORJ\ 0HLW<

REMHFWLYHWR FRXUVH LQ 0HGLFDO (OHFWURQLFV (TXLSPHQW

0DLQWHQDQFH ZLWK LQWDNH FDSDFLW\ RI  QRV LQ 
¾ 'HYHORS +XPDQ 5HVRXUFH DW YDULRXV OHYHOV
\HDUV
&HUWLÀFDWH 'LSORPD 3RVW *UDGXDWH DQG
5HVHDUFK3URIHVVLRQDOV &UHDWH VNLOO GHYHORSPHQW IDFLOLWLHV LQ
GHSULYHGDUHDVWKURXJKVWUHQJWKHQLQJ1,(/,7
¾ /DXQFK VKRUW WHUP ORQJ WHUP PRGXODU QRQ
$SURMHFWRQ'HYHORSPHQWRI1RUWK(DVWHUQ5HJLRQ
IRUPDOFRXUVHVLQVHOHFWHGDUHDV
E\HQKDQFLQJWKH7UDLQLQJ(GXFDWLRQFDSDFLW\LQWKH
¾ 8SJUDGHFRPSHWHQFHRIZRUNLQJSURIHVVLRQDOV ,QIRUPDWLRQ (OHFWURQLFV  &RPPXQLFDWLRQV
LQ,QGLDQ,QGXVWULHV 7HFKQRORJ\ ,(&7 $UHDµLVEHLQJLPSOHPHQWHG,W
¾ 8SJUDGH NQRZOHGJH DQG VNLOOV RI IDFXOW\ RI KDV WKH REMHFWLYH RI XSJUDGLQJ WKH VL[ H[LVWLQJ
WHFKQLFDOLQVWLWXWLRQV &HQWUHVRIWKH1,(/,7LQWKH1RUWK(DVWHUQ5HJLRQDW
*XZDKDWL,PSKDO6KLOORQJ,WDQDJDU*DQJWRNDQG
¾ (QWUHSUHQHXULDO'HYHORSPHQW
$L]ZDO DQG RI VHWWLQJ XS RI WHQ QHZ ([WHQVLRQ
¾ 'HVLJQ  F R Q G X F W  H P S O R \ P H Q W   V H O I &HQWUHVDQGXSJUDGLQJWZR([WHQVLRQ&HQWUHV
HPSOR\PHQWHGXFDWLRQWUDLQLQJ²
6L[WHHQ   RXW RI SURSRVHG (LJKWHHQ  
¾ 3URPRWH DIIRUGDEOH (OHFWURQLFV 'HVLJQ  &HQWUHV([WHQVLRQ &HQWUHV DUH RSHUDWLRQDO DV RQ
7HFKQRORJ\IRUUXUDODUHDV GDWH 7KH QHZ HLJKW ([WHQVLRQ &HQWUHV DUH
¾ 0DNH DYDLODEOH 'HVLJQ &RQVXOWDQF\ 3URGXFW
LPSDUWLQJ WUDLQLQJ IURP EXLOWXS VSDFH DW 6LOFKDU
'HYHORSPHQW  7HFKQLFDO 6XSSRUW VHUYLFHV RI -RUKDW DQG .RNUDMKDU LQ $VVDP 3DVLJKDW LQ
,QWHUQDWLRQDOVWDQGDUGVWRWKH,QGLDQ,QGXVWU\ $UXQDFKDO3UDGHVK6HQDSDWL &KXUDFKDQGSXULQ
0DQLSXU 7XUD LQ 0HJKDOD\D DQG /XQJOHL LQ
   7U D L Q L Q J  : R P H Q  F U H D W L Q J  Z R P H Q 0L]RUDP5HPDLQLQJWZR([WHQVLRQ&HQWUHVDW7H]X
HQWUHSUHQHXUVGDWDHQWU\RSHUDWRUV $UXQDFKDO 3UDGHVK  DQG 'LEUXJDUK $VVDP  DUH
7KH SURMHFW LV LPSOHPHQWHG E\ 1,(/,7 'HOKL ZLWK OLNHO\WREHVWDUWHGVKRUWO\DVWKHSRVVHVVLRQRIEXLOW
ÀQDQFLDOVXSSRUWRICODNKE\0HLW<RYHUWZR XSVSDFHLQ7H]XLVLQSURJUHVVDQGEXLOWXSVSDFHLQ
\HDUVZLWKDQREMHFWLYHWRWUDLQ:RPHQLQ'HOKLWR 'LEUXJDUKKDVEHHQLGHQWLÀHG
PDNHWKHPVHOIUHOLDQWDQGH/LWHUDWHLQFRPSXWHU $ERXW  VWXGHQWV KDYH EHHQ WUDLQHG VR IDU
WHFKQRORJ\E\LPSDUWLQJEDVLF,77UDLQLQJSURPRWH XQGHU WKH SURMHFW 3RVVHVVLRQ RI ODQG IRU
DZDUHQHVVRQLVVXHVUHODWHGWRKHDOWKVDIHW\DQG FRQVWUXFWLRQ RI SHUPDQHQW FDPSXVHV KDV EHHQ
YDULRXVVFKHPHEHQHÀWWLQJZRPHQDQGWRHQKDQFH REWDLQHG DW  ORFDWLRQV RXW RI   LQ 3DVLJKDW
YRFDWLRQDOVNLOORIXQGHUJUDGXDWHZRPHQ *XZDKDWL .RNUDMKDU -RUKDW 7H]SXU 'LEUXJDUK
    6 H W L Q J  X S  R I  0 H G L F D O  ( O H F W U R Q L F V 6LOFKDU ,PSKDO 6HQDSDWL &KUXUDFKDQGSXU $L]DZO
/DERUDWRU\7KHSURMHFWLVEHLQJLPSOHPHQWHGE\ /XQJOHL*DQJWRN6KLOORQJ7XUDDQG&KXFKX\LPODQJ
1,(/,7 6KLOORQJ ZLWK ÀQDQFLDO VXSSRUW RI C /DQGLV\HWWREHREWDLQHGDW7H]XDQG,WDQDJDULQ
ODNKE\0HLW<RYHUDSHULRGRIWKUHH\HDUVZLWKDQ $UXQDFKDO3UDGHVK7KUHH&HQWUDO368VKDYHEHHQ
REMHFWLYHWRVHWXS0HGLFDO(OHFWURQLFV/DERUDWRU\ DSSRLQWHG DV 3URMHFW 0DQDJHPHQW &RQVXOWDQWV
DW1,(/,76KLOORQJIRU7HVWLQJ&DOLEUDWLRQ5HSDLULQJ 30&V  IRU FRQVWUXFWLRQ RI SHUPDQHQW 1,(/,7
DQG0DLQWHQDQFHRI0HGLFDO(OHFWURQLFV(TXLSPHQW &HQWUH ([WHQVLRQ&HQWUHV&RQVWUXFWLRQDFWLYLWLHV
RIYDULRXVKRVSLWDOVLQ0HJKDOD\DDQGWRXQGHUWDNH DUH LQ SURJUHVV DW  ORFDWLRQV LH *XZDKDWL


 $QQXDO5HSRUW

,PSKDO 6KLOORQJ *DQJWRN $L]DZO -RUKDW 7H]SXU 6RIWZDUH7HFKQRORJ\3DUNVRI,QGLD 673, 

'LEUXJDUK .RNUDMKDU &KXFKX\LPODQJ 3DVLJKDW
,QWURGXFWLRQ
6HQDSDWL&KXUDFKDQGSXU7XUDDQG/XQJOHL
6RIWZDUH7HFKQRORJ\3DUNVRI,QGLDZDVVHWXSLQ
1,(/,7LVSUHVHQWO\RIIHULQJWUDLQLQJFRXUVHVIURP
 DV DQ DXWRQRPRXV VRFLHW\ XQGHU WKH 0HLW<
ORFDWLRQV LQ DOO HLJKW   1( 6WDWHV FRYHULQJ WZR
673,·V PDLQ REMHFWLYH KDV EHHQ WKH SURPRWLRQ RI
DGGLWLRQDOORFDWLRQVDW$JDUWDODDQG.RKLPDXQGHU
VRIWZDUH H[SRUWV IURP WKH FRXQWU\ 673, DFWV DV
RWKHU IXQGHG SURMHFWV E\ WKH 0HLW<  1,(/,7 KDV
¶VLQJOHZLQGRZLQSURYLGLQJVHUYLFHVWRWKHVRIWZDUH
VWDUWHG &HQWUH DW 5RSDU LQ EXLOWXS VSDFH
H[SRUWHUV 7KH VHUYLFHV UHQGHUHG E\ 673, IRU WKH
&RQVWUXFWLRQRISHUPDQHQWFDPSXVLVLQDGYDQFHG
VRIWZDUHH[SRUWLQJFRPPXQLW\KDYHEHHQVWDWXWRU\
VWDJH
VHUYLFHV GDWD FRPPXQLFDWLRQV VHUYLFHV
&RQVWUXFWLRQ RI SHUPDQHQW FDPSXVHV RI 1,(/,7 LQFXEDWLRQ IDFLOLWLHV WUDLQLQJ DQG YDOXH DGGHG
$JDUWDOD $MPHU DQG .RONDWD LV FRPSOHWH VHUYLFHV673,KDVSOD\HGDNH\GHYHORSPHQWDOUROH
&RQVWUXFWLRQRISHUPDQHQWFDPSXVRI1,(/,73DWQD LQWKHSURPRWLRQRIVRIWZDUHH[SRUWVZLWKDVSHFLDO
LVLQSURJUHVVDW%LKDWD3DWQD IRFXVRQ60(VDQGVWDUWXSXQLWV
6NLOO'HYHORSPHQWLQ(6'06HFWRU 673, LV UHVSRQVLEOH IRU LPSOHPHQWDWLRQ RI WKH
6RIWZDUH7HFKQRORJ\3DUNV 673 VFKHPHDQGWKH
¾ 6FKHPHIRU)LQDQFLDO$VVLVWDQFHWRVHOHFW
(OHFWURQLFV +DUGZDUH 7HFKQRORJ\ 3DUNV (+73 
6WDWHV87VIRU6NLOO'HYHORSPHQWLQ(6'0
VFKHPH 7KH SKHQRPHQDO VXFFHVV RI WKH ,7,7(6
6HFWRU7KHWRWDOEXGJHWRXWOD\RIWKLV6FKHPH
LQGXVWU\KDVEHHQSRVVLEOHLQWHUDOLDGXHWRSLYRWDO
LV C FURUH $SSUR[  RXW RI ZKLFK WKH
UROHSOD\HGE\WKH6736FKHPH6736FKHPHLVD
*UDQWLQDLG LV C FURUH DSSUR[   7KH
XQLTXHVFKHPHGHVLJQHGWRSURPRWHWKHVRIWZDUH
6FKHPH LV EHLQJ LPSOHPHQWHG LQ HLJKW VWDWHV
LQGXVWU\LQFOXGLQJLQQRYDWLRQVDQGJURZWKRI6WDUW
ZLWKDVNLOOLQJWDUJHWFDQGLGDWHVRYHUD
8SVDQG60(VZLWKRXWDQ\ORFDWLRQDOFRQVWUDLQWV
SHULRGRIIRXU\HDUV 8QGHUWKLVVFKHPHWKH
$V RQ  PRUH WKDQ  XQLWV DUH
WRWDOQXPEHURIUHJLVWHUHGFDQGLGDWHVWLOOGDWH
H[SRUWLQJ XQGHU 673 VFKHPH DQG PRUH WKDQ 
DUHDQGWUDLQHGFDQGLGDWHVDUH
XQLWVZHUHH[SRUWLQJXQGHU(+73
¾ 6FKHPHIRU6NLOO'HYHORSPHQWLQ(6'0IRU
'XULQJ WKH )<  WLOO 6HSWHPEHU  
'LJLWDO ,QGLD 7KH WRWDO EXGJHW RXWOD\ RI WKLV
HVWLPDWHG,7,7H6H[SRUWHDUQLQJVIURP673XQLWVDUH
6FKHPHLV CFURUH DSSUR[ RXWRIZKLFK
CFURUHDQG(OHFWURQLFV+DUGZDUHH[SRUWRI
WKH*UDQWLQDLGLVCFURUH DSSUR[ 7KLV
CFURUHXQGHU(+73VFKHPH
VFKHPHLVEHLQJLPSOHPHQWHGDFURVV,QGLDZLWK
DVNLOOLQJWDUJHWRIFDQGLGDWHVRYHUD 673,&HQWUHV
SHULRG RI IRXU \HDUV 8QGHU WKLV VFKHPH WKH
7R SURYLGH VWDWXWRU\ DQG LQFXEDWLRQ VHUYLFHV WR
WRWDOQXPEHURIUHJLVWHUHGFDQGLGDWHVWLOOGDWH
L Q G X V W U \  P D M R U  W K U X V W  Z D V  J L Y H Q  R Q  W K H
DUH  DQG WUDLQHG FDQGLGDWHV DUH
HVWDEOLVKPHQWRIQHZFHQWUHVDVZHOODVUHYDPSLQJ

RI H[LVWLQJ FHQWUHV $V RI QRZ D WRWDO RI  673,
FHQWUHV6XEFHQWUHV DUH RSHUDWLRQDO DFURVV WKH


0LQLVWU\RI(OHFWURQLFV ,QIRUPDWLRQ7HFKQRORJ\ 0HLW<

FRXQWU\RXWRIZKLFKFHQWUHVDUHLQ7LHU,,DQG7LHU UHPDUNDEOH FRQWULEXWLRQV WR WKH VRIWZDUH

,,,FLWLHV673,LVZRUNLQJFORVHO\ZLWKWKHUHVSHFWLYH H[SRUWLQJ VHFWRU LV SURYLVLRQ RI +LJK6SHHG
6WDWH*RYHUQPHQWVORFDODXWKRULWLHVIRUFUHDWLRQRI 'DWD &RPPXQLFDWLRQ +6'&  VHUYLFHV 673,
PRUH VSDFH HTXLSSHG ZLWK VWDWHRI²WKHDUW KDV GHVLJQHG DQG GHYHORSHG VWDWHRIWKHDUW
LQIUDVWUXFWXUH IDFLOLWLHV IRU GHYHORSPHQW RI WKH +6'& QHWZRUN FDOOHG 6RIW1(7 IRU VRIWZDUH
VRIWZDUHLQGXVWU\DQGLQFUHDVLQJH[SRUWV H[SRUWHUV /RFDO DFFHVV WR LQWHUQDWLRQDO
JDWHZD\V LV SURYLGHG WKURXJK SRLQWWRSRLQW
6HUYLFHV
DQGSRLQWWRPXOWLSRLQWPLFURZDYHUDGLRVZKLFK
 7KH PDLQ VHUYLFHV UHQGHUHG E\ 673, IRU WKH KDVRYHUFRPHWKHODVWPLOHSUREOHPDQGHQDEOHG
VRIWZDUH H[SRUWLQJ FRPPXQLW\ DUH LQFXEDWLRQ 673,WRPDLQWDLQDQXSWLPHPRUHWKDQ
IDFLOLWLHV GDWD FRPPXQLFDWLRQV VHUYLFHV ZKLFK
¾ &RQVXOWDQF\ 6HUYLFHV 673, SURYLGHV
LQWHUDOLDDUHDVXQGHU
FRQVXOWDQF\DQG3URMHFW0DQDJHPHQW6HUYLFHV
6WDWXWRU\6HUYLFHV673,SURYLGHV6LQJOH:LQGRZ DQG WXUQNH\ VROXWLRQ WR YDULRXV QDWLRQDO DQG
&OHDUDQFH WR 6RIWZDUH H[SRUWHUV XQGHU WKH 673 ,QWHUQDWLRQDO RUJDQL]DWLRQV LQ WKH DUHDV RI
6FKHPH 673 6FKHPH SURYLGHV WKHVH XQLWV ZLWK &RPPXQLFDWLRQ1HWZRUNV1HWZRUN2SHUDWLRQ
YDULRXV ÀVFDO LQFHQWLYHV PDNLQJ LW D SKHQRPHQDO &HQWHUV 1HWZRUN 0DQDJHPHQW 6\VWHPV
VXFFHVV FRPSXWHUL]DWLRQ (*RYHUQDQFH QHWZRUNV HWF
¾ , Q F X E D W L R Q  )D F L O L W L H V   % X V L Q H V V  D Q G 7KHWHFKQRORJ\FDSDELOLW\FRXSOHGZLWKSURFHVV
WHFKQRORJ\LQFXEDWLRQVWLPXODWHVWKHJURZWKRI VWUHQJWKVKDVHQDEOHG673,WRVHFXUHDQXPEHU
VWDUWXSV 673, LV RIIHULQJ XOWUDPRGHUQ RIÀFH RISURMHFWVIURPWLPHWRWLPH&RQVXOWDQF\IRU
IDFLOLWLHVWRVPDOOXQLWVDQGHQWUHSUHQHXUV3OXJ HQDEOHPHQWRI%KXEDQHVZDUDVD:L)LFLW\7KH
Q3OD\ IDFLOLWLHV IRU VWDUWXSV HQDEOH VKRUW FLW\:L)LV\VWHPLVH[SHFWHGWREULQJUHYROXWLRQDU\
JHVWDWLRQ SHULRG 7KLV KDV HQFRXUDJHG PDQ\ FKDQJH LQ FLW\·V ,7  F R P P X Q L F D W L R Q
HQWUHSUHQHXUVWRVWDUWWKHLURZQRSHUDWLRQVDQG LQIUDVWUXFWXUHDQGVHUYLFHVZLWKDOOFLWL]HQFHQWULF
JURZLQDFRPSHWLWLYHHQYLURQPHQW VHUYLFHVDUHHQYLVDJHGWREHLQWHJUDWHGZLWKWKH
QHWZRUN
¾ & U H D W L R Q  R I  , Q F X E D W L R Q  6 S D F H  D Q G
,QIUDVWUXFWXUH 673, KDV FUHDWHG EDVLF   ,QGLD %32 3URPRWLRQ 6FKHPH1RUWK
LQIUDVWUXFWXUDOVXSSRUWLQWKHIRUPRI%XVLQHVV (DVW%323URPRWLRQ6FKHPH
,QFXEDWRUVZLWKVWDWHRIDUWIDFLOLWLHVZLWK3OXJ  673,LVWKHQRGDODJHQF\IRULPSOHPHQWDWLRQRI,QGLD
3OD\ IDFLOLWLHV IRU VWDUWXS FRPSDQLHV 7KHVH %32 3URPRWLRQ 6FKHPH ,%36  DQG 1RUWK (DVW
LQFXEDWLRQVHUYLFHVHQDEOHVPDOODQGPHGLXP %32 3URPRWLRQ VFKHPH 1(%36  XQGHU 'LJLWDO
HQWHUSULVHVWRVHWXSRSHUDWLRQVDWPLQLPDOÀ[HG ,QGLD,QLWLDWLYH7KHREMHFWLYHVRIWKHVFKHPHVDUHWR
FRVWV ZLWK ORZ VWDUWXS LQYHVWPHQW WKHUHE\ FUHDWH DURXQG  ODNKV MRE RSSRUWXQLWLHV IRU WKH
HQFRXUDJLQJ HQWUHSUHQHXUVKLS DQG FUHDWLQJ ORFDO\RXWKVRIVPDOOHUPXIIDVLOWRZQVDQGDOVRWR
MREV673,LVLQSURFHVVRIFUHDWLQJDGGLWLRQDO DWWUDFWLQYHVWPHQWVLQWKHUHVSHFWLYHUHJLRQVIRUDOO
LQFXEDWLRQ VSDFH DW $OODKDEDG %KLODL URXQG GHYHORSPHQW 7KHVH VFKHPHV ZLOO KHOS LQ
%KXEDQHVZDU +\GHUDEDG 6KLOORQJ 3DWQD FUHDWLQJULJKWHFRV\VWHPUHTXLUHGIRUWKHJURZWKRI
5DQFKL%KLODL9LMD\DZDGD-DLSXUHWF VPDOOHUPXIIDVLOWRZQVDQGEULQJSURVSHULW\WRWKRVH
¾ 'DWDFRP 6HUYLFHV 2QH RI WKH 673,·V ORFDWLRQV


 $QQXDO5HSRUW

 3URPRWLRQ RI 6PDOO DQG 0HGLXP ¾ 7L(*OREDO6XEPLWIURPWKWK'HFHPEHU

(QWUHSUHQHXUV E\ FUHDWLQJ D FRQGXFLYH DW'HOKL
HQYLURQPHQW LQ WKH ÀHOG RI ,QIRUPDWLRQ 0(',$/$%$6,$
7HFKQRORJ\
,QWURGXFWLRQ
673,KDVEHHQSURPRWLQJ60(VDQGWKHLUFDXVHE\
RIIHULQJ LQFXEDWLRQ VHUYLFHV RUJDQL]LQJ HYHQWV 0HGLD /DE $VLD 0/$VLD  LV D QRWIRUSURÀW
VSRQVRULQJFRVSRQVRULQJ HYHQWV SDUWLFLSDWLRQ LQ RUJDQL]DWLRQ VHW XS XQGHU 6HFWLRQ  RI WKH
HYHQWVDQGH[SRUWSURPRWLRQHIIRUWV6RPHRIWKH &RPSDQLHV $FW  QRZ 6HFWLRQ  XQGHU
PDMRU HYHQWV LQ ZKLFK WKH SDUWLFLSDWLRQ ZDV &RPSDQLHV $FW   E\ 0HLW< IRU EULQJLQJ
RUJDQL]HGE\673,LQFOXGHV EHQHÀWV RI LQIRUPDWLRQ DQG FRPPXQLFDWLRQ
WHFKQRORJLHV ,&7 WRFRPPRQPDQDQGWKHQHHG\
¾ 7L(FRQ  IURP WK WK 0D\  6DQWD
E\ IRFXVLQJ RQ ¶/DE WR /DQG· DQG ´HDUO\ KDUYHVWµ
&ODUD86$ SURMHFWV ¶,QQRYDWLRQ IRU 'LJLWDO ,QFOXVLRQ· LV LWV
¾ &RQQHFWRQWKWK6HSWHPEHUDW YLVLRQ 7KH &RPSDQ\ LV HQJDJHG LQ WKH DUHDV RI
&KHQQDL /LYHOLKRRG(QKDQFHPHQW$JULFXOWXUH&$'WRROVIRU
¾ %DQJDORUH ,7(%L]  IURP WK²WK
DUWLVDQV(53IRU60(V+HDOWKFDUH(PSRZHUPHQW
1RYHPEHUDW%HQJDOXUX RI 3Z'V DQG (GXFDWLRQ ,W ZRUNV ZLWK 5 '
,QVWLWXWLRQV $FDGHPLD ,QGXVWU\ 1*2V  XVHU
¾ ,1)2&20IURPVWUG'HFHPEHU
RUJDQL]DWLRQV7KHSURMHFWVXQGHULPSOHPHQWDWLRQ
DW.RONDWD DQG WKH DFKLHYHPHQWV GXULQJ  DUH DV
¾ &H%,7 ,QGLD  IURP WKWK 'HFHPEHU IROORZV
DW%HQJDOXUX  ,&7 %DVHG ,QWHJUDWHG GHYHORSPHQW
¾ VW%5,&67UDGHIDLURQ,&7H[KLELWLRQIURPWK SURJUDPIRUZRPHQHPSRZHUPHQW/DOODSXUD
WK2FW1HZ'HOKL &UDIWFOXVWHU9DUDQDVLLVDLPHGDWHPSRZHULQJ
¾ ,,7)))DLUIURPWKWK1RYHPEHU :RPHQLQ/DOODSXUDFUDIWFOXVWHUE\GHSOR\PHQWRI
DW1HZ'HOKL YDULRXV ,&7 EDVHG VROXWLRQV  WHFKQRORJLHV
¾ WK1DWLRQDO6XPPLWIURPWK'HFHPEHU
LQFOXGLQJ&KLFŒ&$' DVRIWZDUHWRROIRUDUWLVDQVWR
DW1HZ'HOKL FUHDWH'GHVLJQV ¶%DVLF&RPSXWHU7UDLQLQJ·DQG
KHDOWKDZDUHQHVV'XULQJWKH\HDUPRUHWKDQ
¾ 673, DOVR VSRQVRUHGFRVSRQVRUHG WKH
ZRPHQ  JLUOV ZHUH WUDLQHG RQ %DVLF &RPSXWHU
IROORZLQJPDMRUHYHQWV &RQFHSWDQGWUDLQHGRQ&KLFΠ&$'WRROIRU
¾ 6ULVKWL  IURP WK WK 0D\  DW &UDIWV   .KDND SDWWHUQV ZHUH FUHDWHG E\
%HQJDOXUX DUWLVDQVXVLQJWKHWRRO0RUHWKDQZRPHQJLUOV
¾ 6$12* ;;9,, IURP WKWK $XJXVW   DW
DWWHQGHG KHDOWKFDUH DZDUHQHVV SURJUDPV 7RWDO
0XPEDL ZRPHQKDYHEHQHÀWHGIURPWKHSURMHFW


0LQLVWU\RI(OHFWURQLFV ,QIRUPDWLRQ7HFKQRORJ\ 0HLW<

+RQ·EOH0LQLVWHUIRU(OHFWURQLFV ,76K5DYL6KDQNDU3UDVDGDQG+RQ·EOH0LQLVWHURI6WDWHIRU
(OHFWURQLFV ,76K33&KDXGKDU\LQWHUDFWLQJZLWKEHQHÀFLDULHVRI&KLF&$'DW,,7)'HOKL


 $QQXDO5HSRUW

'HYHORSPHQWRI2SHQ6RXUFH&RPSXWHU +LQGL (QJOLVK IRU-DFTXDUGDQGGREE\ZHDYLQJ

$LGHG'HVLJQLQJ &$' WRROIRUWKH:HDYLQJRI FXVWRPL]DEOHWRORFDOODQJXDJHDQGOLEUDU\RIORFDO
%DQDUDVL6DUHHV GHVLJQV DQG FDQ LQWHJUDWH GHVLJQ WRROV RI XVHU·V
FKRLFH,WIDFLOLWDWHVXQLTXHGLJLWDOFORWKDQGFDQEH
8QGHUWKHDHJLVRI5 'LQ,70/$VLDHPEDUNHGRQ
LQWHJUDWHG ZLWK UG SDUW\ GHVLJQ WRROV 7KH SLORW
EXLOGLQJ ¶2SHQ 6RXUFH· ZHDYLQJ VRIWZDUH WR DLG
YHUVLRQRIWKHVRIWZDUHLVUHDG\ZLWK IHDWXUHVYL]
KDQGORRPZHDYLQJFRPPXQLW\RI%DQDUDVL6DUHHV
FUHDWLQJ 9DUDQDVL GHVLJQV  DUWZRUNV ZHDYLQJ
7KH VRIWZDUH ZLOO DLG ZHDYHUV WR FUHDWH GLJLWDO
SDWWHUQV FRQYHUWLQJ DUWZRUN LQWR JUDSK ÀOOLQJ
DUWZRUNDQGWUDQVODWHVDUHHGHVLJQWREHORDGHGWR
SDWWHUQVWRWKHFRORUVSHFLÀFSRUWLRQRIDUWZRUNDQG
ORRPV7KHVRIWZDUHLV2SHQ6RXUFHPXOWLOLQJXDO
YLVXDOL]LQJWKHGHVLJQRQIDEULF

3LORWWHVWLQJRIWKHVRIWZDUHLQÀHOG

 ,QWHUDFWLYH ,QIRUPDWLRQ 'LVVHPLQDWLRQ EHHQGHSOR\HGDV$QQDSXUQD.ULVKL3UDVDDU6HYD

6\VWHP ,,'6  $.36 DORQJZLWK$1*5$8DQG3-76$8LQVWDWHV
RI$QGKUD3UDGHVK $3 DQG7HODQJDQD'XULQJWKH
,,'6 LV D SXOO  SXVK EDVHG V\VWHP XVHG IRU
\HDUQHZIDUPHUVZHUHUHJLVWHUHG:LWKWKLVD
DJULFXOWXUHUHODWHGDGYLVRULHV,WLVDFRPELQDWLRQRI
WRWDORIDURXQGIDUPHUVDUHQRZUHJLVWHUHG
6PDUW 3KRQH $SSOLFDWLRQ ,QWHUDFWLYH 3RUWDO DQG
XQGHU $.36 VHUYLFHV 7KH .9.V GHOLYHUHG
,QWHUDFWLYH 9RLFH 5HVSRQVH 6\VWHP 7KHUH LV D
DGYLVRULHVIRUPRUHWKDQTXHULHVUDLVHGE\WKH
PRELOHLQWHUIDFHDWIURQWHQGDQGZHELQWHUIDFHDW
EDFNHQG'DWDLVWUDQVPLWWHGWKURXJKYRLFHWH[W
LPDJHV DQG YLGHRV IURP ERWK HQGV IDUPHUV WR
H[SHUWV EDFN ,,'6KDVEHFRPHDXVHIXOWRROLQ
HQKDQFLQJ H[WHQVLRQ RXWUHDFK RI 8QLYHUVLWLHV DQG
HQDEOHGIDUPHUVWRLQWHUDFWGLUHFWO\ZLWK6FLHQWLVWVLQ
WKHLUQDWLYHODQJXDJHV FXUUHQWO\LQ7HOXJXLQ$3 
7HODQDJDQD DQG LQ .KDVL  *DUR LQ 0HJKDOD\D 
([SHUWVXVLQJ,,'6KDVDQDFFHVVWRNQRZOHGJH 
IDUPHUGDWDEDVH
$1*5$8WHDPDORQJZLWKRIÀFLDOVIURP6WDWH$JULFXOWXUH
$QQDSXUQD.ULVKL3UDVDDU6HYD $.36 ,,'6KDV 'HSDUWPHQWZLWK$.36IDUPHUVDW.DGDSD$3


0LQLVWU\RI(OHFWURQLFV ,QIRUPDWLRQ7HFKQRORJ\ 0HLW<

IDUPHUV$SDUWIURPWKHTXHULHV.9.V '$$77&V 6RIWZDUHDQG3RUWDOIRU3Z'V

KDYH VHQW 606   DQG 9RLFH EDVHG
´3XQDUEKDYDŒµ ZZZSXQDUEKDYDLQ ²LVD:HE
PHVVDJHV   LQ 7HOXJX WR DOO UHJLVWHUHG
SRUWDO LQ GLVDELOLW\ ÀHOG IRU GLVVHPLQDWLRQ RI
IDUPHUVRQ$JULFXOWXUH )LVKHULHV
LQIRUPDWLRQ UHODWHG WR GLIIHUHQW GLVDELOLW\ LVVXHV DW
0RELOHEDVHG$JUR$GYLVRU\6\VWHPIRU RQHSODFH,WLVEHQHÀWWLQJSHUVRQVZLWKGLVDELOLWLHV
1RUWK(DVW,QGLD 0DJUL1(,  1*2V SURIHVVLRQDOV SROLF\ PDNHUV VWXGHQWV
S D U H Q W V   F R P P X Q L W \  Z R U N H U V  D Q G  R W K H U
0/$VLDXQGHUWRRNWKHSURMHFWLQLQ0HJKDOD\D
VWDNHKROGHUVLQWKHÀHOGRIGLVDELOLW\7KHSRUWDOLV
R Q  0 R E L O H  % D V H G  $ J U R  $ G Y L V R U \  6 \ V W H P
DFFHVVLEOHDVSHU:&JXLGHOLQHV7KHLQIRUPDWLRQ
PDJUL1(, DORQJZLWK&$8,PSKDOZLWKREMHFWLYH
RQ SRUWDO FRYHUV D 'LVDELOLW\ 5HJLVWHU /HJDO
WRHPSRZHUIDUPHUVE\SURYLGLQJULJKWLQIRUPDWLRQ
,QVWUXPHQWV 5HVRXUFHV &DUHHUV $VVLVWLYH
DWULJKWWLPH7KHVRIWZDUHSODWIRUPEHLQJXVHGIRU
'HYLFHV%ORJV$FFHVVLEOH&RQWHQW/DWHVW1HZV
PDJUL1(,LV,,'6PXOWLPHGLDDJURDGYLVRU\ODEV
(YHQWV (PSOR\PHQW 2SSRUWXQLWLHV 3XEOLFDWLRQV
ZHUH HVWDEOLVKHG DW &ROOHJH RI 3RVW *UDGXDWH
8VHIXO/LQNV1DWLRQDO,QVWLWXWHVDQGIHHGEDFNHWF
6WXGLHV &3*6 %DUDSDQL0HJKDOD\DDQG&ROOHJH
7KHSRUWDOLVXSGDWHGDQGKDVWRKLWVSHU
RI+RPH6FLHQFHV &+6F 7XUD0HJKDOD\DRI&$8
GD\
WRFDWHUWKHIDUPHUV·TXHULHVLQORFDOGLDOHFWV².KDVL
*DUR ´3XQDUMMDQLŒµ ZZZSXQDUMMDQLLQ  ² LV D ZHE
EDVHGWRROWRDVVLVWVSHFLDOWHDFKHUVLQDVVHVVPHQW
7KHWRWDOQRRIIDUPHUVUHJLVWHUHGXQGHUWKHSURMHFW
RIFKLOGUHQZLWKPHQWDOUHWDUGDWLRQ 05 DQGKHOSV
KDVUHDFKHG0RUHWKDQDJULDGYLVRULHV
WKHP VDYH  WLPH E\ GLJLWL]DWLRQ  LQWHJUDWLRQ RI
ZHUHGHOLYHUHGGXULQJWKH\HDU:LWKWKLVWRWDOQRRI
VWDQGDUGPHWKRGVXVHGPDQXDOO\IRU DVVHVVPHQW
TXHULHVUHVROYHGKDVUHDFKHGWR$SDUWIURP
RIFKLOGUHQZLWK0HQWDO5HWDUGDWLRQLQDJHJURXS
WKH TXHULHV 606   DQG 9RLFH EDVHG
 \HDUV  VSHFLDO WHDFKHUV UHSUHVHQWLQJ 
PHVVDJHV  ZHUHVHQWWRUHJLVWHUHGIDUPHUV
VSHFLDO VFKRROV DQG  6DUYD 6KLNVKD $EKL\DQ
RQ$JULFXOWXUH ÀVKHULHV'XULQJ 1RY DQ
66$  EORFNV IURP DURXQG  FLWLHVWRZQV RI 
0R8 ZDV VLJQHG EHWZHHQ 0HJKDOD\D %DVLQ
6WDWHV87VKDYHEHHQWUDLQHGDQGSURYLGHGDFFHVV
'HYHORSPHQW $XWKRULW\ 0%'$  DQG 0/$VLD IRU
WRWKHWRRO+LQGLYHUVLRQKDVEHHQGHYHORSHGDQG
H[SDQVLRQRIPDJUL1(,LQDOOGLVWULFWVRI0HJKDOD\D
XQGHUWHVWLQJ
9LVXDO6SHHFK7UDLQLQJ6RIWZDUH 9676 IRU+HDULQJ
,PSDLUHG 0/$VLDLQSDUWQHUVKLSZLWK,,7%RPED\
LQLWLDWHG WKH SURMHFW ¶9LVXDO 6SHHFK 7UDLQLQJ
6RIWZDUH 9676  IRU +HDULQJ ,PSDLUHG· ZLWK WKH
VXSSRUW RI 0HLW<  7KH 9676  SURYLGHV OLYH YLVXDO
IHHGEDFN IRU 6SHHFK  ODQJXDJH GHYHORSPHQW
6SHHFK3URFHVVLQJ(QJLQHDVD%DFN(QG WRVKRZ
HIIRUWVDFWXDOO\PDGHE\DSHUVRQZLWKUHIHUHQFHWR
WKHWDUJHWHIIRUWV
8QLRQ0LQLVWHURI6WDWH+RPH$IIDLUV
*R,6K.LUHQ5LMLMXLQWHUDFWLQJZLWKSURMHFWIDUPHUVGXULQJ
´'HVWLQDWLRQ1RUWK(DVWµDW3UDJDWL0DLGDQ


 $QQXDO5HSRUW

 ,75$ DQG 9LVYHVYDUD\D 3KG 6FKHPH )<  ,75$:DWHU UHVHDUFK FRPPXQLW\
LQLWLDWLYHV SXEOLVKHG  UHVHDUFK SDSHUV LQ ,75$ OLVWHG
FRQIHUHQFHVMRXUQDOVRILQWHUQDWLRQDOUHSXWHDQG
,QIRUPDWLRQ 7HFKQRORJ\ 5HVHDUFK $FDGHP\
PRUH SDSHUV LQ RWKHU FRQIHUHQFHV  MRXUQDOV 
,75$ ,75$LVDQHQDEOLQJSURJUDPPHHQWUXVWHG
ZRUNVKRSV ZHUH FRQGXFWHG DW DVVRFLDWHG
E\0HLW<WR0HGLD/DE$VLDWRKHOSEXLOGDQDWLRQDO
LQVWLWXWLRQV  ,75$ UHVHDUFKHUV ZHUH GHSXWHG
UHVRXUFHIRUDGYDQFLQJTXDOLW\DQGTXDQWLW\RI5 '
DEURDG IRU YDULRXV LQWHUDFWLRQV  FROODERUDWLRQV
LQ,QIRUPDWLRQ &RPPXQLFDWLRQV7HFKQRORJLHVDQG
2XWRISRVVLEOHVWDUWXSVWHDPVHPHUJLQJRXWRI
(OHFWURQLFV ,&7(  ,W RSHUDWHV DV D GLYLVLRQ RI
,75$:DWHUSURMHFWVZHUHLQYLWHGDW13&DW
0/$VLD DQG LV GHVLJQHG WR SURGXFH D ODUJH
%HQJDOXUXWRVKRZFDVHWKHLUWHFKQRORJLHV
QXPEHUV RI ,7 UHVHDUFKHUV PRWLYDWHG WR LGHQWLI\
VRFLHWDO SUREOHPV LQ ,7 DQG RWKHU GRPDLQV DQG 9LVYHVYDUD\D3K'6FKHPHIRU(OHFWURQLFV ,7
H[SRVHG WR PHFKDQLVPV IRU FRQYHUWLQJ ODE 0HLW<KDVHQWUXVWHG0/$VLDWKHLPSOHPHQWDWLRQRI
VROXWLRQV WR ZRUNLQJ SURWRW\SHV DQG ZRUN LQ 9LVYHVYDUD\D3K'6FKHPHWRHQKDQFHWKHQXPEHU
LQWHUUHODWHGJURXSVDQGQHWZRUNRIUHVHDUFKHUV RI 3K'V LQ (OHFWURQLF 'HVLJQ  0DQXIDFWXULQJ
(6'0 DQG,7,7HQDEOHG6HUYLFHV ,7(6 VHFWRU
0RELOH&RPSXWLQJ1HWZRUNLQJ $SSOLFDWLRQ
7KH REMHFWLYH LV WR VXSSRUW  DGGLWLRQDO 3K'V
,75$0RELOH   ,75$ LQ LWV UHVHDUFK DUHD ¶,75$
VWXGHQWV IXOOWLPHSDUWWLPH LQ(6'0
0RELOH· WDUJHWV DSSOLFDWLRQV RI ,7 LQ +HDOWKFDUH
DQG,7,7(6DQGWRVXSSRUW<RXQJ)DFXOW\WR
7UDQVSRUWDQG'LVDVWHU0DQDJHPHQW7KHSURMHFWV
HQFRXUDJH  UHFRJQL]H WKHLU ZRUN LQ UHVHDUFK 
DUHUXQQLQJLQLQVWLWXWLRQVLQYROYLQJIDFXOWLHV
WHFKQRORJ\GHYHORSPHQW
DQG3K'VWXGHQWV'XULQJ)<,75$
0RELOHUHVHDUFKFRPPXQLW\SXEOLVKHGUHVHDUFK 7KHVFKHPHQRZFRYHUVLQVWLWXWLRQV ,,7V
SDSHUV LQ ,75$ OLVWHG FRQIHUHQFHV  MRXUQDOV RI 1,7V&HQWUDOXQLYHUVLW\'HHPHG8QLYHUVLWLHV
LQWHUQDWLRQDO UHSXWH DQG  PRUH SDSHUV LQ RWKHU ,QVWLWXWLRQ RI 1DWLRQDO LPSRUWDQFH  6WDWH
FRQIHUHQFHVMRXUQDOVFRXUVHVZHUHGHYHORSHG 8QLYHUVLWLHV3ULYDWHLQVWLWXWLRQV 7RWDOIXOO
 PRGLÀHG DQG  ZRUNVKRSV ZHUH FRQGXFWHG DW WLPH   SDUWWLPH IHOORZVKLSV KDYH EHHQ
DVVRFLDWHGLQVWLWXWLRQVUHVHDUFKHUVZHUHGHSXWHG DOORFDWHGVRIDURXWRIZKLFKWRWDOIXOOWLPH 
DEURDG IRU YDULRXV LQWHUDFWLRQV  FROODERUDWLRQV SDUWWLPH FDQGLGDWHV KDYH EHHQ HQUROOHG <RXQJ
2XWRISRVVLEOHVWDUWXSVWHDPVHPHUJLQJRXWRI )DFXOW\ )HOORZVKLSV KDYH EHHQ DZDUGHG WR 
,75$0RELOHSURMHFWVZHUHLQYLWHGDW1$66&20 IDFXOW\ PHPEHUV IURP  ,QVWLWXWLRQV  PRUH
3URGXFW&RQFODYHDW%HQJDOXUXWRVKRZFDVH DSSOLFDWLRQVIURP,QVWLWXWLRQVDUHXQGHUSURFHVV
WKHLU WHFKQRORJ\ WR GRPHVWLF  LQWHUQDWLRQDO
$ ´5HVHDUFK :RUNVKRS LQFOXGLQJ 3UHVHQWDWLRQ 
LQYHVWRUV DQG RWKHU SRWHQWLDO VWDNHKROGHUV 
(YDOXDWLRQZDVKHOGRQWKWK2FWDW,,7
VWDUWXSV WHDPV RQ D ¶+HDOWKFDUH 'HYLFH· DQG
0XPEDL DQG ZDV DWWHQGHG E\ WKH  3K'
¶6PDUWSKRQH%DVHG7UDIÀF$QDO\VLV6ROXWLRQ·ZHUH
FDQGLGDWHVRIWKHEDWFK7KHSURFHHGLQJV
RIIHUHGRQWKHVSRW9&IXQGLQJ
RI WKH ZRUNVKRS ZHUH EURDGFDVW WR UHVW RI WKH
,7EDVHG,QQRYDWLRQVLQ6XVWDLQDELOLW\RI:DWHU FDQGLGDWHV XQGHU VFKHPH:HE 3RUWDO IRU WKH
5HVRXUFHV ,75$:DWHU  ,75$ LQ LWV UHVHDUFK 6FKHPH$ZHESRUWDOKDVEHHQVHWXSRQVFKHPH
DUHD ¶,75$:DWHU· LV IRFXVLQJ RQ PXOWLIDFHWHG IRU LQIRUPDWLRQ GLVVHPLQDWLRQ SURFHVVLQJ RI WKH
FKDOOHQJH RI VXVWDLQDEOH DFFHVV WR ZDWHU IRU DOO SURSRVDOVUHFHLYHGPRQLWRULQJRIWKHVFKHPHHWF
VHFWRUV7KHSURMHFWVDUHUXQQLQJLQLQVWLWXWLRQV 'HWDLOV DERXW WKH VFKHPH DUH DYDLODEOH DW
LQYROYLQJIDFXOWLHVDQG3K'VWXGHQWV'XULQJ KWWSSKGPHGLDODEDVLDLQ


 &+$37(5

27+(50$77(56

  8VHRI+LQGLLQ*RYHUQPHQWZRUNDQG ZULWLQJDWOHDVWZRUGVLQ+LQGLFDQSDUWLFLSDWH

([SHFWHG7HFKQRORJ\'HYHORSPHQW LQWKLV,QFHQWLYH6FKHPH
$ 0HHWLQJ RI WKH UHFRQVWLWXWH +LQGL $GYLVRU\ +LQGL 3DNKZDGD ZDV RUJDQLVHG E\ WKH 0LQLVWU\
&RPPLWWHHRI0HLW\ZDVKHOGRQ2FWXQGHU GXULQJ 6HSWHPEHU  'XULQJ WKLV SHULRG PDQ\
WKH&KDLUPDQVKLSRI 6KUL33&KDXGKDU\+RQ·EOH FRPSHWLWLRQVZHUHKHOGDQGZLQQHUVZHUHDZDUGHG
0LQLVWHU RI 6WDWH IRU  0LQLVWU\ RI  (OHFWURQLFV DQG 7KHSUL]HPRQH\RIWKHDZDUGVKDVEHHQHQKDQFHG
,QIRUPDWLRQ 7HFKQRORJ\ 'XULQJ WKH PHHWLQJ VXEVWDQWLDOO\WRHQFRXUDJHSDUWLFLSDWLRQ
+RQ·EOH0LQLVWHURI6WDWHUHOHDVHGWKHIRXUWKLVVXHRI
7R HQVXUHWKHLPSOHPHQWDWLRQRI RIÀFLDO ODQJXDJH
WKLV0LQLVWU\·V+LQGL3DWULND¶6SDQGDQ· ,QRUGHUWR
SROLF\ DQ RIÀFLDO LQVSHFWLRQ SHUWDLQLQJ WR RIÀFLDO
SURPRWH WKH XVH RI +LQGL LQ RIÀFLDO ZRUN LQ WKH
ODQJXDJH LPSOHPHQWDWLRQ ZDV GRQH DW 1,(/,7
0LQLVWU\D0RQWKO\,QFHQWLYH6FKHPHKDVDOVREHHQ
-DPPXDQRIÀFHXQGHUWKHDGPLQLVWUDWLYHFRQWURORI
VWDUWHGLQDGGLWLRQWR$QQXDO,QFHQWLYH6FKHPHIRU
WKLV0LQLVWU\
1RWLQJ  'UDIWLQJ LQ +LQGL 8QGHU WKLV ,QFHQWLYH
6FKHPHÀYHSUL]HVRICSHUKHDGKDYHEHHQ 9DULRXV LPSRUWDQW 0LQLVWHULDO GRFXPHQWV OLNH
À[HG DQG GXULQJ WKH PRQWK RIÀFHUV HPSOR\HHV $QQXDO 5HSRUW 3HUIRUPDQFH %XGJHW 2XWFRPH


 $QQXDO5HSRUW

%XGJHW YDULRXV FDELQHW QRWHV QRWHV IRU EH VXEPLWWHG WR WKH FRQFHUQHG &3,2V DV SHU
3DUOLDPHQWDU\ 6WDQGLQJ &RPPLWWHH SDUOLDPHQWDU\ SURYLVLRQVRI57,$FW7KHUHLVDQ57,&HOOLQ
TXHVWLRQDQVZHUV 'HPDQGIRU *UDQWVIROORZXS WKH 0LQLVWU\ ZKLFK LV WKH UHFHLYLQJ SRLQW IRU 57,
DFWLRQ UHSRUWV PRQWKO\ UHSRUW IRU &DELQHW DQG DSSOLFDWLRQVDQGDOVRFRRUGLQDWHVPDWWHUVUHODWLQJ
PLVFHOODQHRXV GRFXPHQWV SHUWDLQLQJ WR YDULRXV WR 57,  $OO 3XEOLF $XWKRULWLHV KDYH DOVR KRVWHG
VXEMHFWVZHUHWUDQVODWHGLQ+LQGL UHOHYDQW LQSXWV  GRFXPHQWV RQ WKHLU UHVSHFWLYH
ZHEVLWHVDVUHTXLUHGXQGHU6HFWLRQRIWKH57,$FW
57,
7KH UHOHYDQW FRQWHQWV DUH UHYLHZHG DQG XSGDWHG
0HLW< DQG LWV $WWDFKHG6XERUGLQDWH 2IÀFHV SHULRGLFDOO\E\WKHFRQFHUQHG3XEOLF$XWKRULWLHV
6RFLHWLHVDUHVHSDUDWH3XEOLF$XWKRULWLHVLQWHUPVRI
3XEOLF*ULHYDQFHV5HGUHVVDO0HFKDQLVP
6HFWLRQ K RI57,$FW7KH\KDYHWKHLURZQ
ZHEVLWHVDQGHDFKRIWKHVH3XEOLF$XWKRULWLHVKDV 7KHQXPEHURIJULHYDQFHVUHFHLYHGRQOLQHDVZHOODV
LWVRZQ&HQWUDO3XEOLF,QIRUPDWLRQ2IÀFHUV &3,2V  SK\VLFDOO\E\57,3*&HOOWLOOVW'HFHPEHU
$SSHOODWH $XWKRULWLHV $$V  )RU DQ\ LQIRUPDWLRQ LVDVJLYHQEHORZ
UHODWLQJWRWKHVHRUJDQLVDWLRQVDSSOLFDWLRQVQHHGWR

6RXUFHRI*ULHYDQFH 1RRI*ULHYDQFHVUHFHLYHG 1RRI*ULHYDQFHVUHGUHVVHG

2QOLQH   
3K\VLFDOO\   

$GGLWLRQDOO\ZHKDYHUHFHLYHGIROORZLQJJULHYDQFHVXSWRVW-DQXDU\
6RXUFHRI*ULHYDQFH 1RRI*ULHYDQFHVUHFHLYHG 1RRI*ULHYDQFHVUHGUHVVHG
2QOLQH   
3K\VLFDOO\   

 ,QIRUPDWLRQ  'RFXPHQWDWLRQ &HQWUH 7KH ,QIRUPDWLRQ  'RFXPHQWDWLRQ &HQWUH

/LEUDU\ SRVVHVVHVDSSUR[LPDWHO\ERRNVRQYDULRXV
VXEMHFWV LQFOXGLQJ (OHFWURQLFV &RPSXWHU ,7
7KLV0LQLVWU\KDVDVSDFLRXVZHOOSODQQHG/LEUDU\YL]
&RPSXWHU /DQJXDJHV )LFWLRQ  $OVR KDV VRPH
LQIRUPDWLRQDQG'RFXPHQWDWLRQ&HQWUH , '& ZLWK
ERRNV RQ +LQGL DQG (QJOLVK OLWHUDWXUH , '&
DQLQYHQWRU\RIODWHVWERRNVDQGMRXUQDOV ,WXVHV
S U R F X U H V  R Q  D Q  D Y H U D J H     E R R N V  D Q G
5),' EDVHG /LEUDU\ 0DQDJHPHQW 6\VWHP WR
DSSUR[LPDWHO\-RXUQDOVSHUDQQXP&XUUHQWO\H
PDQDJH LVVXH  UHWXUQV RI -RXUQDOV  , '& DOVR
ERRNV VHUYLFH %RRNV [  DYDLODEOH WR WKH
SURYLGHVYDULRXVRWKHUVHUYLFHVOLNH LQWHU²/LEUDU\
DXWKRUL]HGXVHUV
ORDQ IDFLOLW\ WR WKH RIÀFLDOV RI WKH 0LQLVWU\ WKURXJK
'(/1(7 'HYHORSLQJ /LEUDU\ 1HWZRUN  DQG DOVR 7KH 0LQLVWU\ LV VSHDUKHDGLQJ DQ ,QWUD0LQLVWHULDO
DUUDQJHV ERRNV IURP OLEUDULHV RI YDULRXV RWKHU LQLWLDWLYH YL] WKH /LEUDU\ &RQVRUWLXP 0LQLVWU\ RI
2UJDQL]DWLRQV 6HUYLFHV DUH DOVR SURYLGHG WR WKH &RPPXQLFDWLRQ  ,QIRUPDWLRQ 7HFKQRORJ\ 0&,7 
UHWLUHG RIÀFLDOV RI WKH 0LQLVWU\ DQG WUDLQHHV ZKR &RQVRUWLXP RI WKH 0LQLVWU\ 0&,7 &RQVRUWLXP 
XQGHUWDNHSURMHFWVLQWKH0LQLVWU\ FRPSULVHVWKHXVHUVIURPWKH1DWLRQDO,QIRUPDWLRQ


0LQLVWU\RI(OHFWURQLFV ,QIRUPDWLRQ7HFKQRORJ\ 0HLW<

&HQWUH 1,&  &'$& 1,(/,7 6$0((5 &0(7  'LJLWDO,QGLD3URJUDPPH

674&'LUHFWRUDWH673,&&$(51(7,QGLD&'27
 3URPRWLRQ RI (OHFWURQLFV,7 +DUGZDUH
7KH0LQLVWU\SURYLGHVRQ²OLQHDFFHVVWRYDULRXVH
0DQXIDFWXULQJ6HFWRU
UHVRXUFHV LH ,((( -RXUQDOV 7UDQVDFWLRQV
3URFHHGLQJV ,(( -RXUQDOV 3URFHHGLQJ $&0  ([SDQVLRQ RI 5XUDO  %32V DQG &KDOOHQJHV
GLJLWDOOLEUDU\DQG,626WDQGDUGVWRLWVXVHUVWKURXJK IDFHGE\WKHP
0&,7/LEUDU\&RQVRUWLXP  6WDUWXS&RPSDQLHVLQWKH,76HFWRU²3UREOHPV
3DUOLDPHQW0DWWHUV DQG&KDOOHQJHV

 'XULQJ WKH \HDU D QXPEHU RI 3DUOLDPHQW  5HYLHZ RI 1DWLRQDO 'LJLWDO  /LWHUDF\  0LVVLRQ
4XHVWLRQV ZHUH UHFHLYHG DQG  KDQGOHG E\ WKH 1'/0 ²3UREOHPVDQG&KDOOHQJHV
3DUOLDPHQW 6HFWLRQ 7KHVH ZHUH PDLQO\ UHODWHG WR  5ROH  DQG IXQFWLRQLQJ  RI &RPPRQ 6HUYLFH
&\EHU 6HFXULW\ 1DWLRQDO H*RYHUQDQFH 3ODQ &HQWUHV &6&V
( O H F W U R Q L F V  0 D Q X I D F W X U L Q J   ' L J L W D O  , Q G L D
 ' L J L W D O  2 Q O L Q H  3 U L Y D F \   3 U R E O H P V  D Q G
3URJUDPPH 0LVXVH RI 6RFLDO 0HGLD 0DNLQJ
&KDOOHQJHV
$$'+$5&DUG,QWHUQHWRI7KLQJV'DWD3URWHFWLRQ
DQG3ULYDF\%32·VLQ6PDOO7RZQV&\EHU&ULPH  &ORXG&RPSXWLQJ
+DFNLQJ LQFLGHQWV RI *RYHUQPHQW :HEVLWHV  01&VRSHUDWLQJLQWKHÀHOGRI,7LQ,QGLD
1DWLRQDO3ROLF\RQ(OHFWURQLFV1DWLRQDO.QRZOHGJH
1HWZRUN 2SHQ 6RXUFH 6RIWZDUH H7UDQVODWLRQ  7KH $QQXDO 5HSRUWV  DQG $XGLWHG
(PSOR\PHQWWR<RXWK3DSHUOHVV6DUNDUH.UDQWL $FFRXQWVRI6RFLHWLHV H[FHSW(51(7,QGLD673, 
&ORXG7HFKQRORJ\ 3URSRVDOVIRU,QYHVWPHQWLQ,7 XQGHUWKH$GPLQLVWUDWLYH&RQWURORIWKH0LQLVWU\RI
6HFWRU 7LGH 6FKHPH 'HYHORSPHQW RI H6NLOOV (OHFWURQLFVDQG,QIRUPDWLRQ7HFKQRORJ\KDYHEHHQ
H/LWHUDF\ ,QWHUQDWLRQDOL]HG 'RPDLQ 1DPH ODLGRQWKH7DEOHRIERWKWKH+RXVHVRI3DUOLDPHQW
(QFRXUDJHPHQW WR 6PDOO DQG 0HGLXP 6L]HG ,7 GXULQJWKH%XGJHW6HVVLRQRI3DUOLDPHQW
FRPSDQLHV6XSHU&RPSXWHUV9LRODWLRQRI3ULYDF\  *HQGHU (PSRZHUPHQW  3UHYHQWLRQ RI
RQ ,QWHUQHW 1DWLRQDO 3ROLF\ RQ ,QIRUPDWLRQ VH[XDOKDUDVVPHQWRIZRPHQDWZRUNSODFH
7H F K Q R O R J \  , Q W H U Q H W  5 H O D W H G  3 R O L F H V 
1RFDVHVRIVH[XDOKDUDVVPHQWKDYHEHHQUHSRUWHG
(*RYHUQDQFHDW*UDVVURRW/HYHO
LQ0HLW<GXULQJWKH\HDU
 7KH 'HSDUWPHQW 5HODWHG 3DUOLDPHQWDU\
 $FWLYLWLHV XQGHUWDNHQ IRU WKH EHQHÀW RI
6WDQGLQJ &RPPLWWHH RQ ,QIRUPDWLRQ 7HFKQRORJ\
GLIIHUHQWO\ DEOHG SHUVRQV ´3XQDUEKDYDŒµ
'536& RQ ,7  GLVFXVVHG DQG FRQVLGHUHG WKH
ZZZSXQDUEKDYDLQ :HESRUWDOLQGLVDELOLW\
'HPDQGV IRU *UDQWV  RI WKH 0LQLVWU\ RI
ÀHOG
(OHFWURQLFVDQG,QIRUPDWLRQ7HFKQRORJ\DQGODLGLWV
WK5HSRUWRQWKH7DEOHRIWKH/RN6DEKDRQWK 7KH REMHFWLYH LV GLVVHPLQDWLRQ RI LQIRUPDWLRQ
'HFHPEHU UHODWHGWRGLIIHUHQWGLVDELOLW\LVVXHVDWRQHSODFH,WLV
EHQHÀWWLQJSHUVRQVZLWKGLVDELOLWLHV 'LY\DQJMDQV 
 7KH 6WDQGLQJ &RPPLWWHH RQ ,QIRUPDWLRQ
1*2V SURIHVVLRQDOV SROLF\ PDNHUV VWXGHQWV
7HFKQRORJ\KDYHVHOHFWHGWKHIROORZLQJVXEMHFWVIRU
S D U H Q W V   F R P P X Q L W \  Z R U N H U V  D Q G  R W K H U
GLVFXVVLRQGXULQJWKH\HDU
VWDNHKROGHUVLQWKHÀHOGRIGLVDELOLW\7KHSRUWDOLV


 $QQXDO5HSRUW

DFFHVVLEOHDVSHU:&JXLGHOLQHV,WDOVRKDVIRQW LW ZDV QRWLÀHG RQ 2FWREHU   7KH SROLF\
UHVL]HUDQGFRORUVZLWFKHURSWLRQVIRUDFFHVVLELOLW\ IDFLOLWDWHV HTXDO DQG XQKLQGHUHG DFFHVV RI
7KH LQIRUPDWLRQ RQ SRUWDO LV VHJUHJDWHG XQGHU (OHFWURQLFV DQG ,&7V SURGXFWV DQG VHUYLFHV E\
GLIIHUHQWVHFWLRQVVXFKDV'LVDELOLW\5HJLVWHU/HJDO GLIIHUHQWO\DEOHGSHUVRQV
,QVWUXPHQWV 5HVRXUFHV &DUHHUV $VVLVWLYH
8QGHU WKLV 3ROLF\ DFFHVVLELOLW\ DXGLW RI  PRVW
'HYLFHV%ORJV$FFHVVLEOH&RQWHQW/DWHVW1HZV
SRSXODUYLVLWHG *RYHUQPHQW :HEVLWHV ZDV
(YHQWV (PSOR\PHQW 2SSRUWXQLWLHV 3XEOLFDWLRQV
FRQGXFWHG ZLWK WKH KHOS RI (51(7 ,QGLD $ +LJK
8VHIXO/LQNV1DWLRQDO,QVWLWXWHVDQGIHHGEDFNHWF
/HYHO$GYLVRU\&RPPLWWHH +/$& ZDVFRQVWLWXWHG
7KHSRUWDOLVUHJXODUO\XSGDWHGDQGDYHUDJHGDLO\
ZLWKPXOWLSOHVWDNHKROGHUV·SDUWLFLSDWLRQWRGHFLGH
KLWV KDYH LQFUHDVHG IURP DURXQG  WR 
IXUWKHUFRXUVHRIDFWLRQWRLPSOHPHQWWKHSROLF\$V
GXULQJWKH\HDU
SHUGHFLVLRQVWDNHQE\WKH+/$&YDULRXVLQLWLDWLYHV
´3XQDUMMDQLŒµ ZZZSXQDUMMDQLLQ  ² :HE KDYHEHHQWDNHQ
EDVHG WRRO WR DVVLVW VSHFLDO WHDFKHUV LQ
&RPPHUFLDOL]DWLRQ DQG 'HSOR\PHQW RI
DVVHVVPHQWRIFKLOGUHQZLWKPHQWDOUHWDUGDWLRQ
7$5$1*'LJLWDO3URJUDPPDEOH+HDULQJ$LG
05
&  ' $ &  K D V  G H Y H O R S H G  7D U D Q J    ' L J L W D O
3XQDUMMDQLŒWRROKHOSVVSHFLDOWHDFKHUVLQVDYLQJ
3URJUDPPDEOH+HDULQJ$LG '3+$ DIHDWXUHULFK
WKHLUWLPHE\GLJLWL]DWLRQ LQWHJUDWLRQRIVWDQGDUG
DIIRUGDEOH DQG HDVLO\ PDLQWDLQDEOH GLJLWDO
PHWKRGV ZLGHO\ XVHG PDQXDOO\ IRU UHJXODU
SURJUDPPDEOHKHDULQJDLG,WXVHVDGYDQFHGGLJLWDO
DVVHVVPHQWRIFKLOGUHQZLWK05LQDJHJURXS
VLJQDO SURFHVVLQJ WHFKQLTXHV DQG LV EDVHG RQ
\HDUVYL])$&3 )XQFWLRQDO$VVHVVPHQW&KHFNOLVW
LQGLJHQRXVO\ GHYHORSHG DSSOLFDWLRQ VSHFLÀF
3URJUDPPLQJ %$6,&05 %HKDYLRUDO$VVHVVPHQW
LQWHJUDWHG FLUFXLW NQRZQ DV 1$$'$ 7UDQVIHU RI
6FDOHIRU,QGLDQ&KLOGUHQZLWK0HQWDO5HWDUGDWLRQ 
7H F K Q R O R J \  7R 7  R I  W K H  D E R Y H  V R O X W L R Q
0'36 0DGUDV 'HYHORSPHQW 3URJUDPPLQJ
ZDV FDUULHG WR LQGXVWU\ SDUWQHUV 0V .(/7521
6\VWHP   VSHFLDO WHDFKHUV UHSUHVHQWLQJ 
7KLUXYDQDQWKDSXUDP DQG 0V %HVW +HDULQJ
VSHFLDOVFKRROV 6DUYD6KLNVKD$EKL\DQ 66$ 
6ROXWLRQ 1HZ 'HOKL &'$& KDV VXSSOLHG 7DUDQJ
EORFNV IURP DURXQG  FLWLHVWRZQV RI 
XQGHUYDULRXVJRYHUQPHQWVFKHPHVLQFOXGLQJ5DMLY
6WDWHV87V WKURXJKRXW WKH FRXQWU\ KDYH EHHQ
9LG\D0LVVLRQ 66$ $',36FKHPH $VVLVWDQFHWR
WUDLQHG DQG SURYLGHG DFFHVV WR WKH WRRO +LQGL
'LVDEOHG 3HUVRQV IRU 3XUFKDVH)LWWLQJ RI
YHUVLRQRIWKHWRROKDVEHHQGHYHORSHGDQGXQGHU
$LGV$SSOLDQFHV'HSDUWPHQWRI(PSRZHUPHQWRI
WHVWLQJ
3HUVRQV ZLWK 'LVDELOLWLHV  DQG 5%6. 6FKHPH
,QLWLDWLYHVRQ$FFHVVLELOLW\ 5DVKWUL\D %DO 6ZDVWK\D .DU\DNUDP 1DWLRQDO
+HDOWK0LVVLRQ0LQLVWU\RI+HDOWK )DPLO\:HOIDUH
$ 1DWLRQDO 3ROLF\ RQ 8QLYHUVDO (OHFWURQLF
*RYWRI,QGLD 
$FFHVVLELOLW\ ZDV IRUPXODWHG E\ 0LQLVWU\ RI
(OHFWURQLFVDQG,QIRUPDWLRQ7HFKQRORJ\ 0HLW< DQG


0LQLVWU\RI(OHFWURQLFV ,QIRUPDWLRQ7HFKQRORJ\ 0HLW<

$SSHQGL[,
6XPPDU\RI,PSRUWDQW$XGLW2EVHUYDWLRQV
6O <HDU 1RRI3DUDV 'HWDLOVRIWKH3DUDV3$UHSRUWVRQZKLFK$71VDUHSHQGLQJ
1R 3$&UHSRUWVRQ
ZKLFK$71V 1RRI$71VQRWVHQW 1RRI$71VVHQWEXW 1RRI$71VZKLFK
KDYHEHHQ E\WKH0LQLVWU\HYHQ UHWXUQHGZLWK KDYHEHHQÀQDOO\
VXEPLWWHGWR IRUWKHÀUVWWLPH REVHUYDWLRQVDQG YHWWHGE\DXGLWEXW
3$&DIWHU $XGLWLVDZDLWLQJ KDYHQRWEHHQ
YHWWLQJE\$XGLW WKHLUUHVXEPLVVLRQ VXEPLWWHGE\WKH
E\WKH0LQLVWU\ 0LQLVWU\WR3$&

   1LO  1LO

   1LO  1LO
   1LO  1LO
   1LO  1LO
   1LO  1LO
   1LO  1LO
   1LO  1LO
   1LO  1LO
   1LO  1LO
   1LO  1LO
   1LO  1LO
   1LO  1LO
  1LO 1LO  1LO
  1LO 1LO  1LO

6WDWXVRI$71RQ3DUD1RRI5HSRUW1RRIUHJDUGLQJ3URMHFWPDQDJHPHQWLQ6RFLHW\IRU$SSOLHG
0LFURZDYH(OHFWURQLFV(QJLQHHULQJDQG5HVHDUFK 6$0((5 
$7 1  R Q  3D U D  1 R      G X O \  Y H W W H G  E \  2  R  ' * $   3 7  Y L G H  W K H L U  F R P P X Q L F D W L R Q  1 R  ' * $  3 7 
821R5HSRUW'HLW<$713DUD6$0((5GDWHGKDVDOUHDG\EHHQVHQWWR'R(2R&*$0RQLWRULQJ
&HOOYLGH201R  %XGJHW $XGLW GDWHG


 $QQXDO5HSRUW

$SSHQGL[², &RQWG
$XGLW3DUDVWREHLQFOXGHGLQ$QQXDO5HSRUW  DVSHUGLUHFWLRQVRI0LQLVWU\RI)LQDQFH

6O 5HSRUW $XGLW 6XEMHFW $FWLRQ7DNHQ6WDWXV1RWH

1R 1R  3DUD
<HDU 1R

   ([SHQGLWXUHLQFXUUHGRQWKHEDVHPDSSLQJRIWKH 7KH $71 ZDV VHQW WR 2R '*$
GDWDIRU&RPSXWHU$LGHG'LJLWDO0DSSLQJSURMHFW 3 7YLGHOHWWHUGDWHG
DWDFRVWRICFURUHUHPDLQHGXQIUXLWIXOGXHWR IRU YHWWLQJ 'UDIW $71 KDV DOVR
LPSURSHUSODQQLQJ/DFNRISURSHUPRQLWRULQJDQG EHHQXSORDGHGRQ$306SRUWDO
GHOD\VDWYDULRXVVWDJHVUHVXOWHGLQKDUGZDUHDQG 2R '*$ 3 7 YLGH OHWWHU GDWHG
VRIWZDUHZRUWKCFURUHEHFRPLQJREVROHWH KDVUHWXUQHGWKH$71
1,&DOVRLQFXUUHGZDVWHIXOH[SHQGLWXUHRIC ZLWK UHPDUNV VHHNLQJ IXUWKHU
FURUH RQ UHQW DQG PDLQWHQDQFH FKDUJHV DSDUW LQIRUPDWLRQUHDVRQV 7KH VDPH
IURP LGOH LQYHVWPHQW RI C FURUH RQ KDVEHHQFRPPXQLFDWHGWR1,&
SURFXUHPHQWRIWKHKDUGZDUHDQGVRIWZDUHZKLFK IRU IXUQLVKLQJ IXUWKHU LQIRUPDWLRQ
UHPDLQXQXWLOLVHGLQ1DWLRQDO3RSXODWLRQ3URMHFW YLGHOHWWHUGDWHGDQG
)XUWKHU 1,& IDLOHG WR IRUIHLW WKH EDQN JXDUDQWHH V X E V H T X H Q W  O H W W H U  G D W H G
ZRUWKCFURUHRQIDLOXUHRIWKHYHQGRUWRH[HFXWH 1,&YLGHOHWWHUGDWHG
WKHZRUNXQGHUH&RXUW3URMHFWGXHWRODFNRI&R  KDV IXUQLVKHG WKH
RUGLQDWLRQ DPRQJ WKH FRQFHUQHG XVHU JURXSV UHSO\7KHVDPHLVEHLQJ VHQWWR
1,&DOVRIDLOHGWRWDNHDGYDQWDJHRIWKHGHFOLQLQJ 2R'*$3 7IRUFRQVLGHUDWLRQ
UDWHV E\ QRW ÁRDWLQJ WKH WHQGHUV LQ WLPH IRU VHWWOHPHQW
SURYLGLQJLQWHUQHWEDQGZLWKWR1,&1(7UHVXOWLQJLQ
H[WUDH[SHQGLWXUHRICFURUH
1,& KDG KRVWHG  ZHEVLWH ZLWKRXW VHFXULW\
DXGLW 7KHUH ZHUH PDQ\ GHÀFLHQFLHV LQ
GHYHORSPHQWRIZHEVLWHVDQGZHEDSSOLFDWLRQVRI
YDULRXVSURMHFWV

   'HIHFWLYH SODQQLQJ DQG LPSUXGHQW GHFLVLRQ E\ $71GXO\YHWWHGE\2R'*$3 7

&'$&3XQHQRWRQO\UHVXOWHGLQGHOD\RIPRUHWKDQ Y L G H  W K H L U  8  2  1 R   5 H S 
VL[\HDUVLQFRPSOHWLRQRIEXLOGLQJEXWDOVROHGWR 'HLW<$71&'$& 'HOKL
HVFDODWLRQRIFRVWE\CFURUHDQGEORFNLQJXS GDWHG   82 1R
RIIXQGVRICFURUH,QDGGLWLRQ&'$&'HOKL 5HS'HLW<$71&'$& 3XQH
WRRNSRVVHVVLRQRIDSORWLQ6HSWHPEHUE\ GDWHGKDVEHHQ
SD\LQJCFURUHWR''$+RZHYHUQRZRUNZDV V H Q W  W R   0 R )  ' H S W W   R I
FRPPHQFHGRQWKHSORWHYHQDIWHU\HDUVIURP ( [ S H Q G L W X U H   2  R  & * $ 
WKHGDWHRISRVVHVVLRQDQGDSD\PHQWRIC 0RQLWRULQJ &HOO YLGH WKLV 'HSWW
FURUHZDV PDGHWR''$IRUVHHNLQJH[WHQVLRQV 20GDWHG
IURPWLPHWRWLPH


0LQLVWU\RI(OHFWURQLFV ,QIRUPDWLRQ7HFKQRORJ\ 0HLW<

6O 5HSRUW $XGLW 6XEMHFW $FWLRQ7DNHQ6WDWXV1RWH

1R 1R  3DUD
<HDU 1R

   )DLOXUHRI&'$&PDQDJHPHQWWRWDNHVWHSVWR 7KH5HSO\KDVEHHQVHQWWR2R

DYDLOWKHHOLJLEOHFRQFHVVLRQDOHOHFWULFDOWDULIIDV '*$ 3 7 YLGH OHWWHU GDWHG
SHU0DKDUDVKWUD,7,7(6 SROLF\UHVXOWHGLQ IRUYHWWLQJ'UDIW$71
DYRLGDEOH H[SHQGLWXUH RI C  FURUH WRZDUGV KDV DOVR EHHQ XSORDGHG RQ
HOHFWULFLW\FKDUJHVGXULQJWKHSHULRGWR $306SRUWDO1RIXUWKHUUHPDUNV
 UHFHLYHGIURP2R'*$3 7

   (51(7FRXOGQRWXWLOL]HWKHKLUHGVSDFHHYHQDIWHU 7KH UHSO\ KDV EHHQ VHQW WR 2R
PRUHWKDQIRXU\HDUVIURPWKHGDWHRIVLJQLQJRI '*$ 3 7 YLGH OHWWHU GDWHG
WKHOHDVHDJUHHPHQW7KLVRPLVVLRQRQWKHSDUWRI IRUYHWWLQJ'UDIW$71
(51(7 UHVXOWHG LQ XQIUXLWIXO DQG DYRLGDEOH KDV DOVR EHHQ XSORDGHG RQ
H[SHQGLWXUHRICFURUH $306SRUWDO2R'*$3 7YLGH
OHWWHUGDWHGUHWXUQHG
WKH $71 IRU IXUQLVKLQJ IXUWKHU
LQIRUPDWLRQGRFXPHQWV 7KH
UHSO\RQ$XGLW5HPDUNVKDVEHHQ
VHQW WR 2R '*$  3 7 IRU
VHWWOHPHQW YLGH 20 GDWHG
 2R '*$ 3 7 YLGH
OHWWHU GDWHG  KDV
U H W X U Q H G  W K H  $7 1  Z L W K  W K H
U H P D U N V  V H H N L Q J
LQIRUPDWLRQGRFXPHQWV DQG
IXUWKHUSURJUHVVUHSRUW7KHVDPH
KDV EHHQ VRXJKW IURP (51(7
YLGHOHWWHUGDWHG

   ,PSUXGHQW%LGGLQJDQG&RQWUDFWLQJRQWKHSDUWRI 3DUD KDV EHHQ VHQW WR &'$&

&'$& 1RLGD OHG WR GHOD\ LQ H[HFXWLRQ RI WKH YLGH OHWWHU GDWHG  IRU
SURMHFW´&RPSXWHUL]DWLRQRI3*,0(5&KDQGLJDUKµ IXUQLVKLQJ WKH UHSO\ 5HSO\ KDV
DW YDULRXV VWDJHV IRU ZKLFK 3*,0(5 ZLWKKHOG EHHQUHFHLYHGDQG VHQW WR2R
SD\PHQWRICFURUH%HVLGHV&'$&TXRWHG '*$ 3 7 IRU YHWWLQJ YLGH OHWWHU
´OXPS VXPµ FRVW LI C  ODNK LQ WKH ELG IRU GDWHG2R'*$3 7
HOHFWULFDOFDEOLQJZRUNZLWKRXWSURSHUO\DVVHVVLQJ YLGHOHWWHUGDWHGKDV
WKHTXDQWXPRIZRUN7KLVUHVXOWHGLQDFFHSWDQFH UHWXUQHG WKH $71 ZLWK UHPDUNV
RIFODLPE\3*,0(5IRUCODNKRQO\DJDLQVW 7KHVDPHKDVEHHQVRXJKWIURP
WKH WRWDO ZRUN GRQH ZRUWK C FURUH ZKLFK &  ' $ &  Y L G H  O H W W H U  G D W H G
UHVXOWHGLQWREORFNLQJRIIXQGVE\CFURUH 


 $QQXDO5HSRUW

$SSHQGL[²,,
$QQXDO3ODQ

6O 6FKHPH1RQ6FKHPHV %XGJHWDU\6XSSRUW

1R 娯LQFURUH
1RQ6FKHPHV

 0HLW<6HFUHWDULDW 
 1DWLRQDO,QIRUDPDWLFV&HQWUH 
 5HJXODWRU\$XWKRULWLHV 
 6WDQGDUGLVDWLRQ7HVWLQJDQG4XDOLW\&HUWLÀFDWLRQ 674& 
 &\EHU6HFXULW\ &(57,Q &$7 
 &&$ 
 $VVLVWDQFHWR$XWRQRPRXV 2WKHU%RGLHV 
 &HQWUHIRU'HYHORSPHQWRI$GYDQFHG&RPSXWLQJ &'$& 
 6RFLHW\IRU$SSOLHG0LFURZDYH(OHFWURQLFV(QJLQHHULQJDQG5HVHDUFK 6$0((5 
 &HQWUHIRU0DWHULDOVIRU(OHFWURQLFV7HFKQRORJ\ &0(7 
 0HGLD/DE$VLD 0/$ 
 8QLTXH,GHQWLÀFDWLRQ$XWKRULW\RI,QGLD 8,'$, 
6XE7RWDO 1RQ6FKHPH 
6FKHPH
 'LJLWDO,QGLD 
 0DQSRZHU'HYHORSPHQW 
 (OHFWURQLF*RYHUQDQFH 
 ([WHUQDOO\$LGHG3URMHFW H*RYHUQDQFH 
 1DWLRQDO.QRZOHGJH1HWZRUN 
 3URPRWLRQ RI (OHFWURQLFV  ,7 +DUGZDUH 0IJ 06,36 (')  0DQXIDFWXULQJ 
&OXVWHUV
 3URPRWLRQRI,7,7H6,QGXVWULHV 
 5 'LQ,7(OHFWURQLFV&&%7 
 &\EHU6HFXULW\3URMHFWV 1&&& 2WKHUV 
 )RUHLJQ7UDGH ([SRUW3URPRWLRQ 
6XE7RWDO 6FKHPH 
727$/ 6&+(0( 1216&+(0( 


0LQLVWU\RI(OHFWURQLFV ,QIRUPDWLRQ7HFKQRORJ\ 0HLW<

$SSHQGL[,,,
(PSOR\HHV·VWUXFWXUH
7RWDO(PSOR\HHVVWUXFWXUH 7RWDODQG6&V67V3:'VDVRQ

3HUPDQHQW
L 2WKHUWKDQORZHVWUXQJRIFODVV,       
LL /RZHVWUXQJRI&ODVV,       
*URXS¶$·
7HPSRUDU\
L 2WKHUWKDQORZHVWUXQJRI&ODVV,       
/RZHVWUXQJRI&ODVV,       

*URXS¶%· 3HUPDQHQW       

*D]HWWHG 7HPSRUDU\       

*URXS¶%· 3HUPDQHQW       

1RQ
*D]HWWHG 7HPSRUDU\       

*URXS¶&·
0XOWL7DVNLQJ 3HUPDQHQW       
6WDII*URXS
¶&· (UVWZKLOH 7HPSRUDU\       
*URXS¶'·
7RWDO       


0LQLVWU\RI(OHFWURQLFV ,QIRUPDWLRQ7HFKQRORJ\ 0HLW<
*RYHUQPHQWRI,QGLD
(OHFWURQLFV1LNHWDQ&*2&RPSOH[/RGL5RDG1HZ'HOKL,QGLD
&855(17

7HO
:HEVLWHKWWSPHLW\JRYLQ