02'(51,7<
6',6$92:$/
:20(17+(&,7<$1'7+('(3$570(176725(
0LFD1DYD
‹
>7KLVDUWLFOHZDVSXEOLVKHGLQ0RGHUQ7LPHV5HIOHFWLRQVRQD&HQWXU\RI(QJOLVK0RGHUQLW\
HGV0LFD1DYDDQG$ODQ2
6KHD5RXWOHGJHDQG7KH6KRSSLQJ([SHULHQFHHGV3DVL)DON
DQG&ROLQ&DPSEHOO6DJH@
,QWURGXFWLRQDJHQHDORJ\RIDEVHQFH
7KLVSURMHFWVWDUWHGRXWDVDQLQYHVWLJDWLRQRIWKHSRVLWLRQRIZRPHQLQPRGHUQLW\%\
IRFXVLQJRQVKRSSLQJDQGWKHHPHUJHQFHRIWKHGHSDUWPHQWVWRUHDVNH\LFRQLFDVSHFWVRI
PRGHUQXUEDQVRFLHW\P\LQWHQWLRQZDVWRDUJXHDJDLQVWWKRVHWKHRULVWVZKRGHILQHGPRGHUQLW\
RIWKHODWHQLQHWHHQWKDQGHDUO\WZHQWLHWKFHQWXULHVDVDSXEOLFVWDJHIURPZKLFKZRPHQZHUH
H[FOXGHG+RZHYHUP\DWWHPSWWRLQWHJUDWHFRQFHSWXDOLVDWLRQVRIPRGHUQLW\ZLWKTXHVWLRQV
UDLVHGE\IHPLQLVPDQGWKHFXOWXUHRIFRQVXPSWLRQUHYHDOHGDVXUSULVLQJSDXFLW\RIWKHRUHWLFDO
DQGKLVWRULFDOZRUNDSKHQRPHQRQZKLFKLWVHOIUHTXLUHGH[SODQDWLRQ,QFUHDVLQJO\WKHUHIRUH
P\SURMHFWZDVWUDQVIRUPHGLQWRDJHQHDORJ\RIDEVHQFH,WEHFDPHLQDGGLWLRQWRDQ
HQJDJHPHQWZLWKH[LVWLQJGHEDWHVDQGKLVWRULHVDQLQYHVWLJDWLRQLQWRWKHRIWHQXQFRQVFLRXV
PRWLYHVDQGSULRULWLHVWKDWRSHUDWHLQWKHSURGXFWLRQRILQWHOOHFWXDOZRUNDQGWKDWLQWKLV
LQVWDQFHKDYHOHG,ZLOO DUJXHWRWKHGLVDYRZDORIDPDMRUQDUUDWLYHRIWZHQWLHWKFHQWXU\OLIH
0RGHUQLW\DQGZRPHQ
7KHDUJXPHQWIRUGHSOR\LQJWKHFRQFHSWRIPRGHUQLW\LQRUGHUWRPDNHVHQVHRIWKHFXOWXUDO
DQGPDWHULDOFKDQJHVZKLFKZHUHDFFHOHUDWHGLQWKHPDMRUFLWLHVRIWKHZHVWHUQZRUOGWRZDUGV
WKHHQGRIWKHQLQHWHHQWKFHQWXU\DQGWKHHDUO\GHFDGHVRIWKHWZHQWLHWKFHQWXU\KDVEHHQ
HODERUDWHGHOVHZKHUH2
6KHD 0\SDUWLFXODUIRFXVLVRQWKHH[SHULHQFHDQG
UHSUHVHQWDWLRQRIZRPHQDQGLQWKLVFRQWH[WRQWKHHPHUJHQFHRIQHZIRUPVRIVRFLDO
LQWHUDFWLRQDQGSHUFHSWLRQDQGRQWKHGHYHORSPHQWRIDQHZFRQVFLRXVQHVVDERXWWKH
SRVVLELOLWLHVWKDWPRGHUQXUEDQOLIHZDVDEOHWRRIIHU0RGHUQLW\DV,XVHLWKHUHDQG,KDYH
SURGXFHGDFRPSRVLWHDFFRXQWIRUWKHSXUSRVHRIWKLVDUJXPHQWE\VHOHFWLQJSHUWLQHQWIHDWXUHV
IURPDUDQJHRIFRQWULEXWLRQVERWKFRQWHPSRUDU\DQGPRUHUHFHQW KLJKOLJKWVWKH
FRPSOH[LW\DQGGDQJHUDVZHOODVWKHULFKQHVVDQGH[FLWHPHQWRIHYHU\GD\OLIHLQWKHPRGHUQ
FLW\,WGUDZVDWWHQWLRQWRWKHWH[WXUHRIFRPPRQSODFHH[SHULHQFHVLQWKHPHWURSROLVWRDQ
HQYLURQPHQWFKDUDFWHULVHGE\FRQWLQXRXVIOX[DQGIUHTXHQWHQFRXQWHUVZLWKVWUDQJHUVLQZKLFK
VLJQVDQGDSSHDUDQFHVDFTXLUHDQHZLPSRUWDQFHDQGVXEVWLWXWHLQFUHDVLQJO\IRUWUDGLWLRQDO
QDUUDWLYHVRI VRFLDODQGJHRJUDSKLFDOEHORQJLQJ7KHUHLVDQHZVWUHVVRQGLVSOD\DQGWKHYLVXDO
RQORRNLQJ0RGHUQXUEDQH[LVWHQFHZLWKLWVWUDQVLHQFHDQGXQFHUWDLQW\GHPDQGVQHZ
PRUDOVDVZHOODVQHZIDVKLRQV,WSURGXFHVQHZDVSLUDWLRQV,WJHQHUDWHVQHZHQWHUSULVHVQHZ
ODQJXDJHVDQGFXOWXUDOIRUPV%XWPRGHUQLW\LVQRWRQO\DERXWUHQHZDO$VDFRQFHSWLWDOVR
HPSKDVLVHVGLVLQWHJUDWLRQDQGIUDJPHQWDWLRQ,WVLJQDOVWKHGHVWDELOLVLQJRIPDQ\QLQHWHHQWK
FHQWXU\FRQYHQWLRQVDQGKLJKOLJKWVWKHSHVVLPLVPDVZHOODVEROGQHVVRIWKHPRGHUQ
LPDJLQDWLRQ$QG\HWWKURXJKRXWLWVXJJHVWVDNLQGRI IRUZDUGORRNLQJQHVVDQGDZD\DV
0DUVKDOO%HUPDQKDVSXWLWRIPDNLQJRQHVHOIDWKRPHLQWKHFKDRV
WKHPDHOVWURP
RI
PRGHUQOLIHRIEHFRPLQJWKHVXEMHFWVDVZHOODVWKHREMHFWVRIPRGHUQLVDWLRQ
0RGHUQLW\RIFRXUVHLVDFRQVWUXFWHGQDUUDWLYHDQGOLNHDQ\RWKHURIIHUVXVDYHUVLRQ RI
HYHQWVDQGWKHSDVWLQWKDWLWVLQJOHVRXWFHUWDLQSKHQRPHQDIRULQYHVWLJDWLRQRUHPSKDVLVDQG
LJQRUHVRWKHUV,WLVSHUKDSVXQVXUSULVLQJWRQRWHWKHUHIRUHWKDWGHVSLWHWKHZLGHUDQJHRI
DSSURSULDWLRQVRIWKHFRQFHSWDQGLWVIHUWLOLW\LQHSLVWHPRORJLFDOWHUPVLWKDVIDLOHGRQWKH
ZKROHWRDGGUHVVWKHH[SHULHQFHRIZRPHQ,QVRPHRIWKHFODVVLFDFFRXQWVWKHSURVWLWXWHRU
DFWUHVVHQWHUWDLQHULVGHSLFWHGDVWKHFKDUDFWHULVWLFIHPDOHILJXUHLQWKHLFRQRJUDSK\RIWKH
XUEDQODQGVFDSHLQWKLVZD\VKRULQJXSQLQHWHHQWKFHQWXU\GXDOLVWLFWKRXJKWDERXWYLUWXRXV
DQGIDOOHQZRPHQDVZHOODVP\WKRORJLHVRIWKHVH[XDOO\OLFHQWLRXVFLW\:LOVRQ%XFL
*OXFNVPDQQDQGDWWKHVDPHWLPHLJQRULQJRUGLQDU\ZRPHQ6RPHRIWKHPRUHUHFHQW
DFFRXQWVKDYHEHHQHYHQPRUHQHJOHFWIXODVWRQLVKLQJO\VRJLYHQWKHFULWLFDOFOLPDWHRIWKHODVW
WZRGHFDGHV)ULVE\IRUH[DPSOHUHIHUVQRWDWDOOWRVH[XDOGLIIHUHQFHLQKLVVWXG\RI6LPPHO
%HQMDPLQDQG.UDFDXHUDVNH\FRPPHQWDWRUVRQPRGHUQLW\IDUOHVVHYHQWKDQWKHDXWKRUVGLG
WKHPVHOYHVZKHQWKH\ZURWHDWWKHEHJLQQLQJRIWKLVFHQWXU\)ULVE\YDQ9XFKW7LMVVHQ
7KHSURMHFWRIDFDGHPLFIHPLQLVPKDVEHHQWRSULVHRSHQWKLVVRUWRIQDUUDWLYHDQGPDNHVHQVH
RIWKHPDUJLQDOLVDWLRQRIZRPHQERWKWKHRUHWLFDOO\DQGKLVWRULFDOO\ZKHUHYHUSRVVLEOH-DQHW
:ROII
VLQIOXHQWLDO
7KH,QYLVLEOH)ODQHXVHDQGWKH/LWHUDWXUHRI0RGHUQLW\
KDVEHHQWKH
VHPLQDO SLHFHRQWKLVLQWHOOHFWXDOLVVXH DQGWKHDUJXPHQW,GHYHORSKHUHZDVJHQHUDWHGLQWKH
ILUVWLQVWDQFHLQUHVSRQVHWRKHUV:ROII
VWKHVLVLVWKDWZRPHQDUHDEVHQWIURPWKHFULWLFDO
OLWHUDWXUHRIPRGHUQLW\EHFDXVHLWVIRFXVLVODUJHO\XSRQWKHSXEOLFVSKHUHRQWKHFURZGHGFLW\
VWUHHWDQGWKHH[SHULHQFHRIWKHIODQHXURQWKHZRUOGRISROLWLFVDQGZRUNRQDUHDVIURP
ZKLFKDFFRUGLQJWRKHUZRPHQZHUHH[FOXGHG+HQFHWKHLUQHJOHFWE\WKHWKHRULVWVRI
PRGHUQLW\:RPHQ
VLQFUHDVLQJFRQILQHPHQWWRWKHGRPHVWLFVSKHUHGXULQJWKHQLQHWHHQWK
FHQWXU\FRLQFLGHVZLWKWKHGHYHORSPHQWRIWKHQHZGLVFLSOLQHRIVRFLRORJ\ZKLFKLVFRQFHUQHG
WRFODVVLI\DQGH[SODLQWKHFKDQJLQJSKHQRPHQDRIWKHPRGHUQ SXEOLFZRUOG7KHPRUHOLWHUDU\
FRQWULEXWLRQVDOVRXQGHUVWDQGPRGHUQLW\DVXQLTXHO\DVVRFLDWHGZLWKWKHFLW\DQGSXEOLFOLIH
7KXVZRPHQ
VDFWLYLWLHVDQGODERXUHYHQZKHUHWKHVHDUHQRWFRQILQHGWRWKHKRPHDUHODUJHO\
LQYLVLEOH
7KHOLWHUDWXUHRIPRGHUQLW\LJQRUHVWKHSULYDWHVSKHUHDQGWRWKDWH[WHQWLVVLOHQWRQ
WKHVXEMHFWRIZRPHQ
VSULPDU\GRPDLQ
:ROII$OWKRXJK:ROIIDFNQRZOHGJHV
WKRXJKDOPRVWDVDQDVLGHWKDWZRPHQDUHSURYLGHGZLWKDQHZSXEOLFDUHQDDVDFRQVHTXHQFH
RIWKHHPHUJHQFHRIWKHGHSDUWPHQWVWRUH KHUDUJXPHQWLVWKDWWKHFKDUDFWHULVWLFVRI
PRGHUQLW\LGHQWLILHGE\DXWKRUVOLNH%DXGHODLUHDQG%HQMDPLQ
WKHIOHHWLQJDQRQ\PRXV
HQFRXQWHUDQGWKHSXUSRVHOHVVVWUROOLQJ
GRQRWDSSO\WRZRPHQ
VDFWLYLWLHV,QVXP:ROII
V
DUJXPHQWLVWKDWZRPHQZHUHQRWRQO\H[FOXGHGIURPWKHOLWHUDWXUHRIPRGHUQLW\EXWFRQILQHG
DVWKH\ZHUHWRWKHGRPHVWLFVSKHUHDQGWKHVXEXUEVZRPHQZHUHDOVRH[FOXGHGIURPWKH
H[SHULHQFHRIPRGHUQLW\1RIHPDOHHTXLYDOHQWRIWKHIODQHXUFDQEHLQYHQWHG
$OWKRXJK:ROII
VDUWLFOHKDVPDGHDYDOXDEOHFRQWULEXWLRQE\RSHQLQJXSWKHGHEDWHWKHUHDUH
QHYHUWKHOHVVFHUWDLQNH\DVVXPSWLRQVLQLWZLWKZKLFK,GLVDJUHH0\DUJXPHQWZLOOEHWKDW
ZRPHQZHUHQRWH[FOXGHGIURPWKHH[SHULHQFHRIPRGHUQLW\LQWKHSXEOLFVSKHUHWKDWRQWKH
FRQWUDU\WKH\SDUWLFLSDWHGTXLWHFUXFLDOO\LQ LWVIRUPDWLRQ,QGHHGZRPHQ
VH[SHULHQFHFDQEH
LQWHUSUHWHGDVDTXLQWHVVHQWLDOFRQVWLWXHQWRIPRGHUQLW\6RZHPXVWORRNHOVHZKHUHLIZHDUH
WRXQGHUVWDQGWKHH[FOXVLRQRIZRPHQIURPWKHOLWHUDWXUH
7KHUHDVRQWKDW:ROIIKDVDUJXHGRWKHUZLVHLVLQSDUWDFRQVHTXHQFHRIKHUSHULRGLVDWLRQ7KH
KLVWRULFDOIRFXVRIKHUHVVD\LVRQFRQGLWLRQVGXULQJWKHVHFRQGKDOIRIWKHQLQHWHHQWKFHQWXU\
RQWKRVHURXJKO\FRQWHPSRUDQHRXVZLWKWKH
HDUO\PRGHUQLW\
RI%DXGHODLUHWKHSHULRGZKLFK
%HQMDPLQFDOOHG
WKHSUHKLVWRU\RIPRGHUQLW\
,IVKHKDGSHULRGLVHGPRGHUQLW\GLIIHUHQWO\DQG
OLQNHGLWWRWKHGUDPDRIKLJKPRGHUQLVPVWKHH[SDQVLRQRIPDVVFXOWXUHDQGFRQVXPSWLRQDQG
WKHVRFLRSROLWLFDOLQVWDELOLW\RIWKHODWHQLQHWHHQWKDQGHDUO\WZHQWLHWKFHQWXU\KHULQYHVWLJDWLRQ
ZRXOGKDYHHQFRPSDVVHGWKHPRPHQWZKHQZRPHQ
VDSSURSULDWLRQRISXEOLFVSDFHVLQERWK
V\PEROLFDQGPDWHULDOZD\VZDVJURZLQJUDSLGO\,QWKLVFDVHKHUDUJXPHQWDERXWZRPHQ
V
ODFNRISDUWLFLSDWLRQLQWKHH[SHULHQFHRIPRGHUQLW\ZRXOGKDYHEHHQKDUGHUWRVXVWDLQ
$QRWKHUGLIILFXOW\ZLWK:ROII
VDUJXPHQWLVWKDWVKHGHSLFWVWKH
IODQHXU
DVWKHDUFKHW\SHRI
PRGHUQLW\+HUHVKHUHSURGXFHVWKHWHQGHQF\LQPXFKRIWKHOLWHUDWXUHWRVLQJOHRXWWKHDUWLVW
REVHUYHU
WKHERWDQLVHURQWKHDVSKDOW
XVXDOO\WKHDXWKRUKLPVHOIDVWKHUHSUHVHQWDWLYHRI
WKHPRGHUQXUEDQH[SHULHQFH,QIDFW%DXGHODLUH
VIODQHXU
WKHSDLQWHURIPRGHUQOLIH
ZDVDQ
REVHUYHUDQGUHFRUGHURIPRGHUQLW\KHGLGQRWH[HPSOLI\LW:ROII
VIODQHXULVPRUHRYHU
DOZD\VDPDQEHFDXVHDFFRUGLQJWRKHUDUJXPHQWRQO\PHQKDYHWKHIUHHGRPWRZDQGHUDWZLOO
DQG
WDNHYLVXDOSRVVHVVLRQRIWKHFLW\
0\DUJXPHQWZLOOEHWKDW:ROII
VFRQFHSWRIWKH
IODQHXUDOWKRXJKSURGXFWLYHIRULWVHPSKDVLVRQWKHHSKHPHUDODQGWKHRFXODURQORRNLQJLV
OLPLWHGLQVRIDUDVLWH[FOXGHVWKHHYHU\GD\VSHFWDWRUVKLSRIRUGLQDU\SHRSOHDQGHVSHFLDOO\
RUGLQDU\ZRPHQ
,QJHQHUDO:ROII
VFRQFOXVLRQVDUHUHSUHVHQWDWLYHRIDULFKEXWRIWHQSHVVLPLVWLFWUDGLWLRQLQ
IHPLQLVWKLVWRULRJUDSK\ZKLFKWHQGVWRIRFXVRQWKHVXERUGLQDWLRQRIZRPHQDQGWKHLU
PDUJLQDOLVDWLRQLQPDLQVWUHDPKLVWRULFDODFFRXQWV $OWKRXJKWKHVHUHDGLQJVKDYHKDGWKHLU
SROLWLFDODQGWKHRUHWLFDOLPSRUWDQFHWKH\KDYHDOVRLQKLELWHGWKHH[FDYDWLRQRIRWKHU
WUXWKV
%HUPDQ
VHPSKDVLVRQPDNLQJWKHZRUOG\RXURZQRQWKHKHURLVPDVZHOODVWKHGHVSDLURI
HYHU\GD\OLIHRIIHUVWKHSRVVLELOLW\RIDGLIIHUHQWNLQGRILQWHUSUHWDWLRQRIZRPHQ
VUHODWLRQVKLS
WRPRGHUQLW\GHVSLWHKLVRZQUHODWLYHQHJOHFWRIWKHLVVXHV,I-DQHW:ROIIKDGEHHQUHDGLHUWR
IRFXVRQWKHH[SDQVLRQRIZRPHQ
VFXOWXUDOH[SHULHQFHVLQWKHFLW\UDWKHUWKDQRQWKH
FRQVWUDLQWVWKHQSDUDGR[LFDOO\VKHZRXOGKDYHEHHQLQDSRVLWLRQWRDGYDQFHPRUHIRUFHIXOO\
WKHVHFRQGSDUWRIKHUDUJXPHQWZKHUHVKHSRLQWVWRWKHLQYLVLELOLW\RI ZRPHQLQWKHOLWHUDWXUH
RIPRGHUQLW\
%XW:ROII
VSURFHVVRIGHFRQVWUXFWLRQLVQRWWDNHQIDUHQRXJK7KHDEVHQFHIURPWKHOLWHUDWXUH
LVUHDGDVHYLGHQFHRID
UHDO
DEVHQFHUDWKHUWKDQHYLGHQFHRILWVHOI$GLIIHUHQWUHDGLQJRI
ZRPHQ
VSDUWLFLSDWLRQLQ PRGHUQLW\ZRXOGKDYHHPSKDVLVHGWKHFRQVWUXFWHGQHVVRIWKLV
OLWHUDWXUH,WZRXOGKDYHKLJKOLJKWHGWKHLQWHOOHFWXDO H[FOXVLRQRIZRPHQDQGWKHDPELYDOHQFH
RIWKHDXWKRUVDERXWFXOWXUDOFKDQJHWKHDQGURFHQWULVPRIPRVWRIWKHWH[WVDERXWPRGHUQLW\
-DQHW:ROII
VRZQDUJXPHQWDERXWZRPHQ
VLQYLVLELOLW\ZRXOGKDYHEHHQUHQGHUHGDWRQFH
PRUHFRPSOH[DQGPRUHSHUVXDVLYH
7KHVHDUHWKHLVVXHVWKDWDUHJRLQJWREHGHYHORSHGLQWKLVFKDSWHU7KHIRFXVZLOOEHPDLQO\RQ
WKHGHSDUWPHQWVWRUHDQGVKRSSLQJLQWKHXUEDQFRQWH[WDVDQH[DPSOHRIWKHZD\LQZKLFK
ZRPHQHQJDJHGZLWKWKHPDHOVWURPRIPRGHUQOLIH$QH[SORUDWLRQRIWKLVKLVWRU\ZLOOH[SDQG
RXUXQGHUVWDQGLQJQRWRQO\RIWKHSURFHVVRIPRGHUQLW\EXWDOVRTXLWHFUXFLDOO\RIWKHZD\LW
KDVEHHQUHSUHVHQWHGWRXV,QWKLVVHQVHLWZLOOEHDV,VXJJHVWHGHDUOLHUDNLQGRIJHQHDORJ\
RIDEVHQFH7KHTXHVWLRQLVKRZFDQZHPDNHVHQVHRIWKHIDLOXUHWRDFNQRZOHGJHZRPHQ
V
SDUWLFLSDWLRQLQWKHPDNLQJRIPRGHUQXUEDQFRQVXPHUFXOWXUHRIWKHGLVDYRZDORIWKLV
SLYRWDODVSHFWRIHDUO\WZHQWLHWKFHQWXU\OLIH"
2QHZD\RIDGGUHVVLQJWKLVHYHQLIQRWUHVROYLQJLWLVWRORRNDOVRDWVRPHRIWKHIRUPDWLYH
SRSXODUDQGFULWLFDOUHVSRQVHVWRFRQVXPHULVPDQGPDVVFXOWXUHGXULQJWKHILUVWGHFDGHVRIWKLV
FHQWXU\DQGWRFRQVLGHUWKHZD\VLQZKLFKWKHSV\FKLFDQGKLVWRULFDOIRUPDWLRQVRIDXWKRUV
LQIOHFWWKHWH[WVWKDWWKH\SURGXFH
:RPHQDQGWKHFLW\
,WLVLPSRUWDQWILUVWWRH[SORUHWKHV\PEROLFUHVRQDQFHRIWKHFLW\LQPRGHUQLW\DQGUHJLVWHULWV
VLJQLILFDQFHLQUHODWLRQWRRXUREMHFWVRIFRQFHUQWRZRPHQWKHGHSDUWPHQWVWRUHDQGPDVV
FXOWXUH0RUHWKDQDQ\RWKHUVRFLDOIRUFHRIWKHQLQHWHHQWKFHQWXU\WKHFLW\HYRNHGWKH
IUHHGRPDVZHOODVWKHPHQDFHWKDWFKDUDFWHULVHGWKHPRGHUQH[SHULHQFH7KURXJKRXWWKLV
SHULRGLWJUHZDVDWHUULWRU\QRWRQO\VSDWLDOO\EXWDOVRLQWHUPVRILWVFXOWXUDOVLJQLILFDWLRQVLQ
WKHZD\LQZKLFKLWZDVXQGHUVWRRGDQGUHSUHVHQWHG7KHFLW\ZDVLQFUHDVLQJO\P\WKRORJLVHG
DOEHLWLQFRQWUDGLFWRU\ZD\V7KH%ULWLVKYHUVLRQRIWKLVLPDJLQHGJHRJUDSK\WHQGHGWRVWUHVV
WKHGLVWXUELQJDVSHFWVRIWKHXUEDQHQYLURQPHQWWKHFKDRVDQGSROOXWLRQPRUDODQGVH[XDO
GLVVROXWLRQDQGWKHHURVLRQRIWUDGLWLRQDORUGHU ,QWKLVQDUUDWLYHWKHWKUHDWHQLQJQDWXUHRIWKH
FLW\UHJXODUO\RSHUDWHGDVDFRXQWHUSRLQWWRWKHLGHDORIDYLUWXRXVDQGKDUPRQLRXVUXUDORU
VXEXUEDQGRPHVWLFH[LVWHQFH
7KLVNLQGRISRODULVDWLRQVSOLWWLQJDQGSURMHFWLRQLQSV\FKRDQDO\WLFDOWHUPVFDQEH
XQGHUVWRRGDVDQDWWHPSWWRLPSRVHDPRUDODQGFRJQLWLYHRUGHURQDKLJKO\YRODWLOHDQG
LQFRPSUHKHQVLEOHJHRSROLWLFDOFRQWH[W,WLVDOVROLQNHGWRWKHVH[XDOLVDWLRQRIWKHV\PEROLF
UHJLVWHURIWKHFLW\7KHSRVLWLRQRIZRPHQLQQLQHWHHQWKFHQWXU\XUEDQP\WKRORJLHVZDV
SDUWLFXODUO\FKDUJHG:DONRZLW]DQG:LOVRQ1DYD+HUHWRR
FODVVLILFDWLRQVRIRSSRVLWLRQDQGH[FOXVLRQRSHUDWHGWRPDLQWDLQRUGHU'LVUHSXWDEOHZRPHQ
ZHUHDVVRFLDWHGZLWKWKHLPPRUDOLW\RISXEOLFOLIHLQWKHFLW\ZLWKWKHGHVSLVHGSURVWLWXWHDQG
WKHXQUXO\DQGRIWHQIHPLQLVHGXUEDQPRE+X\VVHQ 6HQQHWW'DYLGRIIHWDO
5HVSHFWDEOHDQGYLUWXRXVZRPHQZHUHFRQQHFWHGWRWKHKRPHDQGWKHLGHDOKRPH
ZDVVLWXDWHGRXWVLGHWKHFLW\LQWKHOHDI\VXEXUEVRUYLOODJHFRPPXQLW\7KHVH[XDO
SURKLELWLRQVDQGLQFLWHPHQWHODERUDWHGLQWKHVHGLVFRXUVHVZHUHPDUNHGE\DGHHSO\URRWHG
FRQFHSWXDODQGHPRWLRQDODGKHUHQFHWRWKHLPPXWDELOLW\RIGLYLVLRQVWKHIRUWLILHGQDWXUHRI
ERXQGDULHVEHWZHHQZRPHQRIGLIIHUHQWVRFLDOFODVVHVDQGSK\VLFDOORFDWLRQVDQGEHWZHHQ
WKH
QDWXUDOO\RUGDLQHG
VSKHUHVRIPHQDQGZRPHQ
,WKDVDOUHDG\EHHQSRLQWHGRXWWKDWPXFKLQIOXHQWLDOIHPLQLVWKLVWRULFDOUHVHDUFKRIWKHODVW
GHFDGHVLQFOXGLQJ:ROII
VKDVEHHQFRQFHUQHGWRWUDFHWKHGHYHORSPHQWRIDQLGHRORJ\RI
VHSDUDWHVSKHUHVDPRQJWKH9LFWRULDQPLGGOHFODVVHVDQGKDVDWWHPSWHGWRVKRZKRZWKH
FXOWXUDOHQWUHQFKPHQWRIVXFKLGHDVUHVXOWHGLQWKHVRFLDODQGPDWHULDOH[FOXVLRQRIZRPHQ
IURPSXEOLFOLIHDQGXUEDQDUHDV7KLVKDVXQGRXEWHGO\EHHQWKHGRPLQDQWWHQGHQF\LQIHPLQLVW
KLVWRULRJUDSK\ +RZHYHUWKHUHKDYHDOVREHHQVRPHGLVVHQWLQJLQWHUSUHWDWLRQV$PDQGD
9LFNHU\LQKHUGLVFXVVLRQRIVXFKSRVLWLRQVKDVVXJJHVWHG
WKHVWUHVVRQWKHSURSHUIHPDOH
VSKHUHLQ9LFWRULDQGLVFRXUVHVLJQDOOHGFRQFHUQWKDWPRUHZRPHQZHUHDFWLYHRXWVLGHWKH
KRPHUDWKHUWKDQSURRIWKDWWKH\ ZHUHVRFRQILQHG
(OL]DEHWK:LOVRQKDVDOVR
DUJXHGWKDWZRPHQZHUHQRWHDVLO\EDQLVKHGIURPSXEOLFSODFHVDQG-XGLWK:DONRZLW]
DQGRWKHUVKDYHGUDZQDWWHQWLRQWRWKHODUJHQXPEHUVRIPLGGOHFODVVZRPHQSKLODQWKURSLVWV
ZKRPRYHGIUHHO\DURXQGWKHFLW\VWUHHWV
7KHVHFRQIOLFWLQJYHUVLRQVDUHHYLGHQFHQRWRQO\RIFXUUHQWDFDGHPLFGHEDWH7KH\DOVR
VXJJHVWDPXFKPRUHXQHYHQDQGFRQWUDGLFWRU\SLFWXUHRIZRPHQ
VH[SHULHQFHRIFLW\OLIHWKDQ
FDQEHGHGXFHGIURPDIDFHYDOXHDQDO\VLVRIGRPLQDQWGLVFRXUVHV9LFNHU\
VFRPPHQWLPSOLHV
WKRXJKGRHVQRWGHYHORSLQWKLVFRQWH[WDUHDGLQJDJDLQVWWKHJUDLQDUHDGLQJZKLFKKLQWV
WKDWWKHFRQWLQXRXVUHLWHUDWLRQRIFHUWDLQLGHDVPLJKWEHHYLGHQFHRIDQ[LHW\DQGDWWHPSWHG
GHQLDOUDWKHUWKDQ
UHDOLW\
0RUHRYHUWKHUHLVHYLGHQFHWKDWGXULQJWKHFORVLQJGHFDGHVRIWKH
FHQWXU\WKHUHRFFXUUHGLQFUHDVLQJO\LQLGHDVDERXWIHPLQLQLW\DQGLQZRPHQ
VFLUFXPVWDQFHV
SUHFLVHO\WKHLQVWDELOLW\DQGXQIL[LQJRISDUDPHWHUVRIGLIIHUHQFHWKDWWKHFRQFHSWRIPRGHUQLW\
DVLWKDVEHHQXVHGKHUHVHHPVWRHQFDSVXODWHVRZHOO
2QHRIWKHPRVWVLJQLILFDQWFKDQJHVWKDWWRRNSODFHGXULQJWKLVSHULRGZDVDUDSLGH[SDQVLRQ
RIZKDWFRXQWHGDVUHVSHFWDEOHRUDWOHDVWDFFHSWDEOHSXEOLFVSDFHIRUXQDFFRPSDQLHGZRPHQ
*UHHQKDOJK$EHOVRQ:DONRZLW]:LOVRQ7KHFDWHJRU\LQFOXGHGWKH
JUHDWH[KLELWLRQVJDOOHULHVOLEUDULHVUHVWDXUDQWVWHDURRPVKRWHOVDQGGHSDUWPHQWVWRUHV
ZKLFKZLOOEHUHWXUQHGWRLQPRUHGHWDLOLQWKHQH[WVHFWLRQ
SXEOLFSULYDWHOLPLQDOVSDFHV
DV
=XNLQKDVFDOOHGWKHPDVVRFLDWHGLQSDUWZLWKDPRUHJHQHUDOSURPRWLRQRIEXLOGLQJV
DQGHYHQWVDVFXOWXUDOFRPPRGLWLHVDQGLQSDUWZLWKWKHFOHDUGHPDQGVPDGHE\ZRPHQ
WKHPVHOYHV$JURZLQJQXPEHURIDXWKRUVEXWVWLOODPLQRULW\ LQWKHFRQWH[WRIIHPLQLVW
GHEDWHKDYHGHVFULEHGLQGHWDLOWKHJURZWKRIWKHVHSODFHVDQGWKHZD\VLQZKLFKWKH\FDWHUHG
VSHFLILFDOO\WRZRPHQYLVLWRUVDQGFOLHQWV$VLJQLILFDQWEXWQHJOHFWHGFRQVHTXHQFHRIWKLV
H[SDQVLRQZDVWKDWPLGGOHFODVVZRPHQWUDYHOOHGZLWKLQFUHDVLQJIUHHGRPWKURXJKWKHVWUHHWV
DQGRSHQSXEOLFVSDFHVRIWKHFLW\7KH\WRRNDGYDQWDJHRIDOODYDLODEOHIRUPVRIWUDYHOVRPH
KDGWKHLURZQFDUULDJHVRWKHUVWUDYHOOHGE\SXEOLFWUDQVSRUWRQWUDLQVEXVHVDQGWXEHV
VRPHURGHWKHLUELF\FOHVGXULQJWKHVWKHUHZDVDF\FOLQJFUD]HIRUZRPHQDQG\HW
RWKHUVWUDYHOOHGRQIRRW /\QQH:DONHU
VUHVHDUFKRQWKLVVXEMHFWKDVVKRZQKRZWKHSULYDWH
DQGSXEOLFVSDFHVWKDWPLGGOHFODVVZRPHQIUHTXHQWHGZHUHRIWHQDOVRZLWKLQZDONLQJGLVWDQFH
RIHDFKRWKHUDQGPRYHPHQWEHWZHHQWKHPQHFHVVDULO\HQWDLOHGPLQJOLQJZLWKWKHFURZGDQG
HQFRXQWHULQJVWUDQJHUVSRVVLEO\GLVUHSXWDEOHVWUDQJHUVDWFORVHSUR[LPLW\7KHVHIRUD\V
ZHUHFRQGXFWHGRQDGDLO\EDVLVIRUYHU\PDQ\ZRPHQ6HYHUDODXWKRUVKDYHGUDZQRQGLDULHV
DQGFRUUHVSRQGHQFHWRVKRZWKHIUHTXHQF\DQGQRUPDOLW\RIVXFKH[FXUVLRQVGHVSLWHLQVRPH
LQVWDQFHVIDPLOLDORSSRVLWLRQDQGKDUDVVPHQWRQWKHVWUHHWV 6RZKDWEHJLQVWRHPHUJHLVD
SLFWXUHLQZKLFKPLGGOHFODVVZRPHQZHUHPXFKFORVHUWRWKHGDQJHUVDQGWKHH[FLWHPHQWRI
FLW\OLIHWKDQWKHQRWLRQRIVHSDUDWHVSKHUHVZRXOGOHDGXVWRDQWLFLSDWH
,QIDFWPLGGOHFODVVZRPHQODLGLQFUHDVLQJFODLPQRWRQO\WR
UHVSHFWDEOH
SXEOLFSODFHV/DUJH
QXPEHUVDOVRYLVLWHGOHVVVDOXEULRXVQHLJKERXUKRRGVDVSDUWRIWKHSUROLIHUDWLRQRI
SKLODQWKURSLFVFKHPHVWKDWHPHUJHGGXULQJODWHQLQHWHHQWKFHQWXU\LQRUGHUWRFRSHZLWKWKH
SHUFHLYHGFULVLVRIWKHFLW\ ZLWKWKHWKUHDWRIVRFLDOGLVRUGHUGLVHDVHGHVWLWXWLRQDQG
LQDGHTXDWHKRXVLQJ0LGGOHFODVVZRPHQDVEHDUHUVRIDSDUWLFXODUNLQGRINQRZOHGJHZHUH
LQYROYHGRQDKXJHVFDOHLQWKHSURFHVVRIGLVVHPLQDWLQJLQIRUPDWLRQDERXWPRUDOLW\GRPHVWLF
HFRQRP\K\JLHQHDQGFKLOGFDUHWRZRPHQRIWKHZRUNLQJFODVV,QLWZDVHVWLPDWHGWKDW
ZRPHQZHUHSDLGRIILFLDOVDQGDQDVWRQLVKLQJKDOIPLOOLRQZHUHYROXQWDU\ZRUNHUV
HQJDJHGLQSKLODQWKURSLFSURMHFWVGHGLFDWHGWRLPSURYLQJWKHOLYHVRIWKHXUEDQSRRU+ROOLV
6RLWLVFOHDUWKDWPLGGOHFODVVXUEDQZRPHQZHUHQRWFRQILQHGWRWKHLUKRPHVDOOWKHWLPH
,QGHHGLQWKHLUSXUVXLWRI
DGYHQWXUHVHOIGLVFRYHU\DQGPHDQLQJIXOZRUN
:DONRZLW]
PDQ\ZRXOGKDYHYHQWXUHGLQWRVOXPWHUULWRU\XQIDPLOLDUHYHQWRWKHLUKXVEDQGVDQG
EURWKHUV7KHVHMRXUQH\VZKLFKLQYROYHGWUDYHORQSXEOLFWUDQVSRUWDQGRQIRRWDORQJ
XQNQRZQVWUHHWVDQGHQFRXQWHUVLQLQVDQLWDU\RYHUFURZGHGKRXVLQJZLWKVWUDQJHUVSRVVHVVLQJ
TXLWHGLIIHUHQWOLIHH[SHULHQFHVGHPDQGHGIURPWKHVHXUEDQH[SORUHUVDTXLWHH[WUDRUGLQDU\
GHJUHHRILQWUHSLGLW\DQG\LHOGHGDULFKVWRUHRISHUVRQDODQGVRFLDOGLVFRYHULHV:RPHQ
FKDULW\ZRUNHUVZHUHHQJDJHGDVPXFKLQDPDSSLQJRIWKHQHZVRFLDOUHODWLRQVRIWKHFLW\DV
ZHUHWKHPRUHHVWHHPHGDQGUHFRJQLVHGKLVWRULDQVDQGSRHWVRIWKHPRPHQW7KHYLVLRQDU\
HOHPHQWLQWKHLUDFWLYLWLHVZDVSHUKDSVVRPHZKDWFRPSURPLVHGE\WKHIDFWWKDWWKHLUSHUVRQDO
IUHHGRPIURPWKHFRQVWUDLQWVRIODWH9LFWRULDQGRPHVWLFLW\ZDVJDLQHGLQWKHSURFHVVRI
DWWHPSWLQJWRHQIRUFHLWHOVHZKHUHRQWKHZRPHQRIWKHSRRUHUFODVVHV%XWWKLVFRQWUDGLFWLRQ
QHHGQRWXQGHUPLQHWKHPRGHUQLW\ RIWKHLUFRQVFLRXVQHVVDQGH[SHULHQFHDQ\PRUHWKDQWKH
FRQWUDGLFWLRQVRI)DXVW
VJUDQGPRGHUQSURMHFWDVGHVFULEHGE\%HUPDQ
7KHZRPHQZKRWUDYHOOHGLQWKLVFDSDFLW\SXUSRVHIXOO\DQGUHODWLYHO\IUHHO\WKURXJKWKH
QRWRULRXVVWUHHWVRI/RQGRQZHUHXQOLNHO\WRKDYHOLQJHUHGLQSDUNVDQGRWKHUSXEOLFSODFHVWR
REVHUYHWKHHSKHPHUDRIXUEDQOLIHHVSHFLDOO\IHPLQLQHOLIHLQTXLWHWKHYR\HXULVWLFVW\OH
DWWULEXWHGWR%DXGHODLUH
VIODQHXU 1HYHUWKHOHVVFKDULW\ZRUNHVWDEOLVKHGIRUWKHVHZRPHQ
WKHULJKWWRORRN,WDXWKRULVHGWKHREVHUYDWLRQDQGFODVVLILFDWLRQRIWKHKRPHVOLYHVDQGHYHQ
PDULWDOUHODWLRQVKLSVRIWKHSRRU0LGGOHFODVVZRPHQLQYROYHGLQWKHSKLODQWKURSLFHQWHUSULVH
ZHUHQRWREOLJHGWRFRQGXFWWKHLUDIIDLUVZLWKORZHUHGJD]H7KH\FRXOGLQGXOJHWKHSOHDVXUHV
RIXUEDQVSHFWDWRUVKLSRIWKHYR\HXUZLWKDVHQVHRIHQWLWOHPHQWZKLFKLVQRWVRHDVLO\
GLVWLQJXLVKDEOHIURPWKDWRIWKHPDOHIODQHXU0RUHRYHUWKHLUSDUWLFLSDWLRQLQLQFUHDVLQJO\
SURIHVVLRQDOLVHG
VRFLDO
ZRUNDOVRLPSOLFDWHGWKHPLQWKHSURMHFWRIWKHUHJXODWLRQRI
SRSXODWLRQVLQWKHREVHUYDWLRQFRUUHFWLRQDQGLPSURYHPHQWRIWKHVRFLDOERG\ ZKLFKLVWKH
FHQWUDOIHDWXUHRI)RXFDXOW
VUDWKHUGLIIHUHQWO\GHILQHGDQGSHULRGLVHG
PRGHUQLW\
)RXFDXOW
3KLODQWKURS\LVMXVWRQHLQVWDQFHRIWKHZD\LQZKLFKWKH9LFWRULDQLGHDORIVHSDUDWHVSKHUHV
ZDVXQGHUPLQHGLIVRPHZKDWFRQWUDGLFWRULO\DQGLQWKH\HDUVDURXQGWKHWXUQRIWKHFHQWXU\
WKHQXPEHUVRIZRPHQUHIXVLQJWRVWD\ZLWKLQWKHFRQILQHVRIWKHGRPHVWLFH[SDQGHGUDSLGO\
0RGHUQZRPHQZHUHLQFUHDVLQJO\LIXQHYHQO\HQJDJHGLQWKHSXEOLFZRUOGLQZRUNLQ
ILQDQFLDOWUDQVDFWLRQVLQHGXFDWLRQDQGWKHGLVVHPLQDWLRQRINQRZOHGJHDQGLQSROLWLFDODFWLRQ
7KHPRYHPHQWIRUZRPHQ
VVXIIUDJHUHSUHVHQWHGSHUKDSVPRUHWKDQDQ\RWKHUDFWLYLW\WKH
VSHFWDFXODUKLJKSRLQWRIWKHHDUO\WZHQWLHWKFHQWXU\FKDOOHQJHWR9LFWRULDQFRQYHQWLRQVRI
IHPLQLQLW\'XULQJWKH\HDUVSUHFHGLQJWKHILUVWZRUOGZDUPDQ\WKRXVDQGVRIZRPHQIURPDOO
VRFLDOEDFNJURXQGVWRRNWRWKHFLW\VWUHHWVLQIODPER\DQWSXEOLFDQGVRPHWLPHVTXLWH
DVWRQLVKLQJO\YLROHQWSURWHVWDJDLQVWWKHLQMXVWLFHRIGLVHQIUDQFKLVHPHQWEDVHGRQVH[XDO
GLIIHUHQFH,QLWLVHVWLPDWHGWKDWDVPDQ\DVKDOIDPLOOLRQSHRSOHFRQYHUJHGLQ+\GH
3DUNWRVXSSRUWRUREVHUYHWKHVWUXJJOH7KHVWULNLQJLPSDFWRIHQRUPRXVO\ORQJFROXPQVRI
PLOLWDQWZRPHQPDUFKHUVSURJUHVVLQJIURPDOOFRUQHUVRI/RQGRQGUHVVHGLQWKHVXIIUDJHWWH
FRORXUVRIZKLWHJUHHQDQGSXUSOHDQGEHDULQJWKRXVDQGVRIEROGO\GHVLJQHGEDQQHUVLV
GHVFULEHGE\/LVD7LFNQHUZKRDUJXHVWKDWWKHFDPSDLJQPDUNHGDVLJQLILFDQWWXUQLQJ
SRLQWLQWKHPRGHUQXVHRIYLVXDOLPDJHU\DQGSXEOLFLW\0RUHRYHULQWKHLUDUWLFXODWLRQRID
PRGHUQLVWLPDJLQDWLRQZLWKSROLWLFDOFRQVFLRXVQHVVDQGDZLOOWRFKDQJHWKHSURWHVWPDUFKHV
IRUZRPHQ
VVXIIUDJHH[HPSOLI\ZLWKH[WUDRUGLQDU\YLYLGQHVVWKHHYRFDWLYHFRQFHSWRI
SULPDO
PRGHUQVFHQH
GHYHORSHGE\0DUVKDOO%HUPDQWRGHVFULEHWKHDUFKHW\SDORUGHWHUPLQLQJHYHQWV
RIPRGHUQLW\LQZKLFKWKHFLW\VWUHHWVEHFRPHWKHVWDJHIRUJUHDWPRPHQWVRIPDVVDFWLRQDQG
VRFLDOWUDQVIRUPDWLRQ%HUPDQKRZHYHUGRHVQRWLQFOXGHWKHVXIIUDJH
GHPRQVWUDWLRQVDPRQJWKHKLVWRULFDOHYHQWVKHVHOHFWVWRYDOLGDWHKLVFDWHJRU\6RWKH
FDPSDLJQIRUYRWHVIRUZRPHQLV\HWRQHPRUHLQVWDQFHZKLFKGHPRQVWUDWHVERWKWKH
SUHFDULRXVQHVVRIQLQHWHHQWKFHQWXU\FRGHVRIIHPLQLQLW\DQGWKHQDUURZQHVVRIDQRWLRQRI
PRGHUQLW\ZKLFKLJQRUHVWKHH[SHULHQFHRIZRPHQ7LFNQHU6WUDFKH\5RELQV
7KLVSHULRGDOVRVDZDGHVWDELOLVDWLRQRI9LFWRULDQVH[XDOPRUHV7KHUHLVDULFKOLWHUDWXUH
ZKLFKVLWXDWHVWKHFKDOOHQJHWRVH[XDOFRQYHQWLRQVZLWKLQWKHEURDGHUIUDPHZRUNRIWKHQHZ
ZRPDQ
VSXUVXLWRIIUHVKRSSRUWXQLWLHVDQGJUHDWHUVRFLDOIUHHGRP7KLVFKDOOHQJHZDVSRVHG
QRWRQO\LQ UHODWLRQWRFKRLFHRISDUWQHUFRXUWVKLSSDWWHUQVDQGLQGHSHQGHQFHRIPRYHPHQW
)UHHORYH
DQGWKHLGHDRIVH[XDOSOHDVXUHDVDQHQWLWOHPHQWIRUZRPHQDVZHOODVPHQZHUH
JUDGXDOO\SXWRQWKHDJHQGDDOEHLWPDLQO\LQXUEDQ%RKHPLDQDQGLQWHOOHFWXDOFLUFOHVDQG
DUJXHGIRUDORQJVLGHWKHQHHGIRUVH[XDOUHIRUPVOLNHFRQWUDFHSWLRQDQGDERUWLRQ'HVSLWHWKH
GDQJHUVRIVRFLDORVWUDFLVPDQGWKHFRQWLQXLQJLQIOXHQFHRIVRFLDOSXULW\PRYHPHQWVWKHROG
VH[XDORUGHUZDVLQFUHDVLQJO\GHILHG%UDQGRQ7ULPEHUJHU6KRZDOWHU
6DFNYLOOH:HVW:HHNV,GHDVDERXW
PRGHUQUHODWLRQVKLSV
DQGQHZZD\VRIOLYLQJ
ZHUHVORZO\GLVVHPLQDWHGDQGSRSXODULVHG:RPHQ
VPDJD]LQHVDQGODWHUWKHFLQHPDZHUHWR
EHDPRQJWKHPDLQVRXUFHVRILQIRUPDWLRQDERXWPDQ\ RIWKHVHTXHVWLRQVIRURUGLQDU\ZRPHQ
,WZDVLQWKHVHIRUDWKDWZRPHQUHDGHUVDQGVSHFWDWRUVHQFRXQWHUHGUHSUHVHQWDWLRQVRIWKHQHZ
IHPLQLQLWLHVRIYDPSVDQGLQGHSHQGHQWZRPHQ(ZHQDQG(ZHQ,WZDVKHUHWKDWSXEOLF
GLVFXVVLRQWRRNSODFHDERXWWKHDSSURSULDWHFRQVWLWXHQWVRIZRPHQ
VEHKDYLRXU
7KLVVHFWLRQKDVVHWRXWVRPHRIWKHFRQWUDGLFWRU\DQGXQVWDEOHHOHPHQWVLQFLW\OLIHDQG
ZRPHQ
VFLUFXPVWDQFHVGXULQJWKH\HDUVDURXQGWKHWXUQRIWKHFHQWXU\LQRUGHUWRSURYLGHD
FRQWH[WIRUWKHHQVXLQJVWXG\RIHDUO\WZHQWLHWKFHQWXU\FXOWXUDOUHVSRQVHVWRZRPHQDV
FRQVXPHUV:KDWKDVHPHUJHGLQWKLVDFFRXQWLVDGLVVRQDQFHEHWZHHQZRPHQ
VOLYHG
H[SHULHQFHDQGWKHGLVFRXUVHRIWKHLUVHFOXVLRQLQWKHGRPHVWLFVSKHUH2QHZD\RIPDNLQJ
VHQVHRIWKLVGLVFRXUVHLVWRVHHLWDVDIRUPRIGHQLDODVDZD\RIDWWHPSWLQJWRKROGEDFNWKH
PRGHUQRIUHVLVWLQJRUDWWKHYHU\OHDVWRIUHJXODWLQJWKHHQFURDFKPHQWRIZRPHQDQGWKH
QHZZRPDQ
LQSDUWLFXODU:HZLOOVHHODWHUWKDWDVLPLODUSURFHVVRIGHQLDORSHUDWHGLQWKH
SXEOLFDQGFULWLFDOUHVSRQVHVWRZRPHQ
VLQYROYHPHQWLQPDVVFXOWXUHSDUWLFXODUO\WRVKRSSLQJ
DQGFLQHPDJRLQJ7KHWXUQRIWKHFHQWXU\GLGLQGHHGVHHDQDFFHOHUDWLQJFKDOOHQJHWRWKH
UKHWRULFDOFRQYHQWLRQVRISXEOLFDQGSULYDWHVSKHUHVDQGWRWKHGLVWLQFWLRQVEHWZHHQ
UHVSHFWDEOHDQGGLVUHSXWDEOHWRVRPHRIWKHPDMRUV\PEROLFPDUNHUVRIVH[DQGVH[XDO
LGHQWLW\,QVRIDUDVPRGHUQLW\VLJQDOVDSHUPHDELOLW\RIERXQGDULHVDQGWKHEOXUULQJRI
FDWHJRULHVDQGGLIIHUHQFHLWVHHPVXQWHQDEOHWRDUJXHWKDWZRPHQZHUHH[FOXGHGIURPLW
)XUWKHUPRUHWKHZRPHQGHVFULEHGKHUHLQQHJRWLDWLQJXUEDQDQGSROLWLFDOWXUEXOHQFHDQG
FKDOOHQJLQJVRFLDORUWKRGR[LHVZHUHHQJDJHGLQWKHSURMHFWRIPDNLQJWKHPVHOYHVDWKRPHLQ
WKHPDHOVWURPRIPRGHUQOLIHRIEHFRPLQJWKHVXEMHFWVDVZHOODVWKHREMHFWVRI
PRGHUQLVDWLRQKRZHYHUFRQWUDGLFWRU\SDLQIXODQGXQHYHQWKHSURFHVV
0RGHUQLW\DQGWKHGHSDUWPHQWVWRUH
$ORQJVLGHWKHVHGHYHORSPHQWVLQSHUVRQDOPRELOLW\XUEDQVSHFWDWRUVKLSSROLWLFDO
FRQVFLRXVQHVVDQGVRFLDO IUHHGRPVDQGFRPSOH[O\UHODWHGWRWKHP ZDVZRPHQ
VPDVVLYH
SDUWLFLSDWLRQLQWKHH[SORGLQJFXOWXUHRIFRQVXPSWLRQDQGVSHFWDFOH,WLVKHUHLQWKLVDUHQD
WKDWWKHHYHU\GD\OLYHVRIODUJHQXPEHUVRIRUGLQDU\ZRPHQZHUHPRVWGHHSO\DIIHFWHGE\WKH
SURFHVVRIPRGHUQLW\7KHGHSDUWPHQWVWRUHZDVIURPWKHODWHQLQHWHHQWKFHQWXU\FHQWUDOWRWKH
LFRQRJUDSK\RIFRQVXPHUFXOWXUHLWH[HPSOLILHGWKHXELTXLW\RIWKHYLVXDOLQWKHQHZ
VFRSLF
UHJLPH
DQGVKRXOGEHUHDGDVRQHRIWKHDUFKHW\SDOVLWHVRIPRGHUQLW\ ZKLFKERWKSURGXFHG
DQGZDVSURGXFHGE\WKHH[SHULHQFHRIZRPHQ)DON-D\(PLOH=RODLQKLV
FDUHIXOO\UHVHDUFKHGQRYHODERXWODWHQLQHWHHQWKFHQWXU\3DULV7KH/DGLHV
3DUDGLVHGHVFULEHG
VXFKVWRUHVDVD
WULXPSKRIPRGHUQDFWLYLW\
=ROD5RVV
6KRSSLQJLQIDVKLRQDEOHFLW\FHQWUHVDVDSOHDVXUDEOHVRFLDODFWLYLW\ZDVDOUHDG\HVWDEOLVKHG
DPRQJWKHXSSHUFODVVHVSULRUWRWKLVSHULRGDVZDVWKHHQKDQFHPHQWRIVRFLDOVWDWXVDQG
LGHQWLW\ZKLFKGHULYHGIURPWKHFRQVXPSWLRQRILQWULFDWHO\FRGHGSRVVHVVLRQVDQGVW\OHV
$GEXUJKDP&DPSEHOO0F.HQGULFNHWDO9HEOHQ9LFNHU\,Q
WKHODWHHLJKWHHQWKFHQWXU\2[IRUG6WUHHWKDGDOUHDG\EHHQGHVFULEHGDVD
GD]]OLQJVSHFWDFOH
RI
VSOHQGLGO\OLWVKRSIURQWV
DQG
DOOXULQJ
DQG
KDQGVRPH
GLVSOD\V,Q5REHUW6RXWKH\
ZURWHRIWKHLURSXOHQFHDQGVRFLDOLPSRUWDQFH
6KRSVDUHEHFRPHH[KLELWLRQVRIIDVKLRQ:KHQSHUVRQVRIGLVWLQFWLRQDUHLQWRZQWKH
XVXDOHPSOR\PHQWRIWKHODGLHVLVWRJRDVKRSSLQJ7KLVWKH\GRZLWKRXWDFWXDOO\
ZDQWLQJWRSXUFKDVHDQ\WKLQJ$GEXUJKDP
$VWKHFHQWXU\SURFHHGHGDQXPEHURIIDFWRUVFRPELQHGWRPDNHWKHH[SHULHQFHRIIDVKLRQDEOH
VKRSSLQJHYHQPRUHDJUHHDEOHDQGWRH[WHQGLWWRZRPHQRIWKHPLGGOHFODVVHVWR
GHPRFUDWLVHOX[XU\
DV=RODSXWLW 7KHH[SDQVLRQRIVKRSVDQGVKRSSLQJGXULQJWKH
ODWWHUGHFDGHVRIWKHQLQHWHHQWKFHQWXU\DQGHDUO\\HDUVRIWKHWZHQWLHWKZDVGXHLQSDUWWRD
JHQHUDOJURZWKLQWKHHFRQRP\DQGPRUHVSHFLILFDOO\WRGHYHORSPHQWVLQSXEOLFWUDQVSRUW
ZKLFKEHQHILWHGPDQXIDFWXUHUVDVZHOODVFRQVXPHUVDQGDOWHUHGWKHVSDWLDOUHODWLRQVRIWKH
FLW\1HZIRUPVRIPDVVSURGXFWLRQRIQRQHVVHQWLDO
FRQVXPHU
JRRGVDQGUHDG\WRZHDU
FORWKLQJDOVRPDGHDFUXFLDOFRQWULEXWLRQDVGLGWKHDPELWLRQVRILQGLYLGXDOHQWUHSUHQHXUV7KH
PRVWVLJQLILFDQWIDFWRUKRZHYHUZDVSUREDEO\JURZLQJGHPDQG7KHDVSLUDWLRQVRIDQ
H[SDQGLQJDQGLQFUHDVLQJO\VRFLDOO\DQGJHRJUDSKLFDOO\PRELOHXUEDQSRSXODWLRQZHUH
LQH[WULFDEO\ERXQGXSZLWKWKHHPHUJHQFHDQGFRQVROLGDWLRQRIPRGHUQIRUPVRIUHWDLOLQJDQG
WKHGHSDUWPHQWVWRUHLQSDUWLFXODU&DPSEHOO'DYLV
'HSDUWPHQWVWRUHVZHUHHVWDEOLVKHGLQDOOWKHPDMRUFLWLHVRIWKHZHVWHUQZRUOGDQGUHDFKHG
WKHLU
]HQLWK
$GEXUJKDPGXULQJWKHSHULRGLGHQWLILHGDWWKHEHJLQQLQJRIWKLVFKDSWHUDV
WKHKLJKSRLQWRIPRGHUQLW\=RODGHSLFWVWKHGHSDUWPHQWVWRUHDWWKHFHQWUHRIKLVQRYHODVD
PRGHUQPDFKLQHZKLFKGHYRXUVWKHVPDOORXWGDWHGFRPPHUFLDOHQWHUSULVHVVXUURXQGLQJLW
$FFRUGLQJWRKLPGHSDUWPHQWVWRUHVV\PEROLVHWKH
IRUZDUGPRPHQWXPRIWKHDJHWKHEROG
QHZIRUPVRIFDSLWDOLVP
5RVV7KHLUSUHFXUVRUVWKHFRYHUHGVKRSSLQJDUFDGHVRIWKH
PLGQLQHWHHQWKFHQWXU\ZKRVHVPDOOVSHFLDOW\VKRSVZHUHXQDEOHWRFRPSHWHZLWKPDVV
SURGXFHGFRPPRGLWLHVDUHGHVFULEHGE\ :DOWHU%HQMDPLQLQKLV$UFDGHV3URMHFWDVDQHDUOLHU
IRUPRIFDSLWDOLVPSDUWRIWKH
XUODQGVFDSHRIFRQVXPSWLRQ
%XFN0RUVV7KHQHZ
VWRUHVPRGHUQLVHGUHWDLOLQJQRWRQO\E\RIIHULQJDZLGHUDQJHRIFKHDSHUPDVVSURGXFHG
IDVKLRQDEOHFORWKHVDQGRWKHUFRPPRGLWLHVEXWDOVRE\UDWLRQDOLVLQJWKHXVHRIVSDFHPDNLQJ
HFRQRPLHVRIVFDOHLQWURGXFLQJFOHDUSULFLQJV\VWHPVDQGGLVSOD\LQJJRRGVLQDVDIHDQG
SOHDVDQWHQYLURQPHQWVRWKDWFXVWRPHUVFRXOGORRNDQGFRPSDUHZLWKRXWREOLJDWLRQWREX\
&KDQH\ /LQNHGLQH[WULFDEO\WRWKHVHFRPPHUFLDOGHYHORSPHQWVDQGDOVRDFUXFLDOFRPSRQHQWRIWKH
FRQFHSWRIPRGHUQLW\ ZDVWKHJURZLQJLPSRUWDQFHRIH[WHUQDODSSHDUDQFHVRIVXUIDFH
LPSUHVVLRQV7KLVFRQFHUQIRUZKDW(ZHQKDVFDOOHG
DUPRXUIRUFLW\OLIH
ZDVDIHDWXUH
RIWKHVSHFLILFKLVWRULFDOFRQMXQFWXUHXQGHUUHYLHZZKLFKZDVFKDUDFWHULVHGE\DQHVFDODWLQJ
LQVWDELOLW\RIFODVVDQGJHRJUDSKLFDOERXQGDULHV7KLVLQFUHDVLQJVRFLDOIOXLGLW\LVZKDWIXHOOHG
6LPPHO
VSUHRFFXSDWLRQZLWKWKHPHDQLQJRIPRGHUQIDVKLRQV7KHSHULRGDOVR
ZLWQHVVHGWKHJURZLQJLQIOXHQFHRIDPRUHRSHQ$PHULFDQFXOWXUHEURXJKWWR%ULWDLQE\
GHYHORSPHQWVLQVKLSSLQJDQGWKHPXWXDOEHQHILWVRIDOOLDQFHVEHWZHHQ1HZ:RUOGZHDOWKDQG
(XURSHDQ
GLVWLQFWLRQ
$WVXFKDVRFLDOO\SUHFDULRXVWLPHQHZVLJQVZHUHUHTXLUHGDVHPEOHPV
RIVWDWXVDQGLQGLYLGXDOLW\'UHLVHU
VKHURLQH&DUULHZKRDWWKHEHJLQQLQJRIWKHQRYHO 6LVWHU
&DUULHSXEOLVKHGLQVHHNVDMRELQDGHSDUWPHQWVWRUHH[HPSOLILHVWKLVLQKHUPHWLFXORXV
DFTXLVLWLRQDQGGLVSOD\RIWKHFRGHVRIVRFLDOSRVLWLRQ/HRQRUH'DYLGRIIKDVVKRZQ
KRZWKRVHDVSLULQJWREHFRPHSDUWRI6RFLHW\LQQLQHWHHQWKFHQWXU\%ULWDLQSDLGVFUXSXORXV
DWWHQWLRQWRGUHVVDQGFRPSRUWPHQW'XULQJWKLVSHULRGWKHIDVKLRQLQJRIWKHKRPHDOVRJDLQHG
VLJQLILFDQFHDVDYLVLEOHLQGLFDWRUQRWRQO\RIUDQNEXWLQFUHDVLQJO\DOVRRIFKRLFHDQG
LGHQWLW\
'UHLVHU(ZHQ)HDWKHUVWRQH)RUW\
:RPHQSOD\HGDFUXFLDOSDUWLQWKHGHYHORSPHQWRIWKHVHWD[RQRPLHVRIVLJQLILFDWLRQ LQWKH
DFTXLVLWLRQRIJRRGVZKLFKFRQYH\HGV\PEROLFPHDQLQJVDERXWWKHLURZQHUVVLQFHLWZDV
ZRPHQZKRZHQWWRWKHGHSDUWPHQWVWRUHVDQGGLGWKHVKRSSLQJ)URPWKHLULQFHSWLRQWKH
GHSDUWPHQWVWRUHVSURYLGHGDSDUWLFXODUO\ZHOFRPLQJVSDFHIRUZRPHQDQGQXPHURXV
FRQWHPSRUDU\DFFRXQWVLQGLFDWHWKDWYLVLWVWRWKHPWRRNSODFHIUHTXHQWO\VRPHWLPHVVHYHUDO
WLPHVDZHHN$EHOVRQ/HDFK:DONRZLW] $VLQVWLWXWLRQVWKHVWRUHVPDGH
DPDMRUFRQWULEXWLRQWRWKHWZHQWLHWKFHQWXU\FRQVROLGDWLRQRIZRPHQDVFRQVXPHUVDQGWR
FRQVXPSWLRQDQGFRQVXPHUH[SHUWLVHDVDFWLYLWLHVWKDWZHUHDVJHQGHUHGDVSURGXFWLRQ
'XULQJWKHSHULRGZHDUHORRNLQJDWZRPHQZHUHFRQILUPHGDVDUELWHUVRIWDVWHDQG
LQWHUSUHWHUVRIWKHQHZWKHPRGHUQ,WZDVZRPHQZKRILUVWRI DOOHQFRXQWHUHGQHZIDVKLRQV
DQGGRPHVWLFQRYHOWLHVDQGGHFLGHGZKHWKHUWKH\ZHUHZRUWKDGRSWLQJ$VWKRVHPRVWOLWHUDWH
LQWKHFRPSOH[VLJQLILHUVRIVRFLDOKLHUDUFK\ DOLWHUDF\DFTXLUHGODUJHO\IURPPDJD]LQHVDQG
WKHVWRUHVWKHPVHOYHV%UHZDUGLWZDVZRPHQZKRGHFRGHGDQGHQFRGHGWKHFKDQJLQJ
LPDJHVRIFODVV:LWKLQWZRRUWKUHHGHFDGHVWKHVHOHVVRQVZHUHWREHOHDUQHGPDLQO\IURPWKH
PRYLHVLQGHHG+ROO\ZRRGZDVWREHFRPHDPDMRULQVSLUDWLRQIRUVKRSGHVLJQ(FNHUW
EXWEHIRUHWKHILUVWZRUOGZDUWKHSULQFLSDOVRXUFHRILQIRUPDWLRQDERXWWKHPHDQLQJRIKRZ
RWKHUVOLYHGDQGGUHVVHGZDVIRXQGLQWKHVWRUHV
6RFOHDUO\GHSDUWPHQWVWRUHVZHUHPRUHWKDQMXVWSODFHVZKHUHPHUFKDQGLVHZDVERXJKWDQG
VROG,QDGGLWLRQWRIDFLOLWDWLQJWKHDFTXLVLWLRQRI
FXOWXUDOFDSLWDO
%RXUGLHXWKH\IRUPHG
SDUWRIWKHKXJHH[SDQVLRQRISXEOLFVSDFHDQGVSHFWDFOHZKLFKLQFOXGHGWKHJUHDWLQWHUQDWLRQDO
H[KLELWLRQVPXVHXPVJDOOHULHVOHLVXUHJDUGHQVDQGDOLWWOHODWHUWKHFLQHPDDQGWKH\
SURYLGHGDQ H[WUDRUGLQDU\UDQJHRIIDFLOLWLHVHQWHUWDLQPHQWVDQGYLVXDOSOHDVXUHV3HRSOH
YLVLWHGWKHPDVWRXULVWDWWUDFWLRQVDVPRQXPHQWVWRPRGHUQLW\ IRUWKHLQWHUHVWDQGSOHDVXUH
WKH\DIIRUGHGLQWKHPVHOYHV
7KHKLVWRULDQVRIWKHPRVWUHQRZQHGGHSDUWPHQWVWRUHV GHVFULEHWKHPDVIDQWDV\SDODFHV
,QFUHDVLQJO\SXUSRVHEXLOWLQWKHPRVWOX[XULRXVVW\OHVZLWKWKHPRVWPRGHUQDVZHOODV
WUDGLWLRQDOLQGLJHQRXVDQGLPSRUWHGPDWHULDOVPDQ\KDGJUDQGRSHQVWDLUFDVHVDQGJDOOHULHV
RUQDWHLURQZRUNKXJHDUHDVRIJODVVLQGRPHGURRIVDQGGLVSOD\ZLQGRZVPLUURUHGDQG
PDUEOHZDOOV SDUTXHWIORRUVFRYHUHGZLWKHDVWHUQFDUSHWVDQGIXUQLWXUHXSKROVWHUHGLQVLON
DQGOHDWKHU7KHVHHPSRULDZHUHDPRQJWKHYHU\ILUVWSXEOLFVSDFHVWREHKHDWHGDQGWRXVH
HOHFWULFOLJKWQRWRQO\IRULOOXPLQDWLRQEXWDOVRIRUHIIHFW,QWKHLUGLVSOD\RIJRRGVDQGXVHRI
FRORXUWKH\RIWHQGUHZRQWKHFRQYHQWLRQVRIWKHDWUHDQGH[KLELWLRQVFRQWLQXRXVO\LQQRYDWLQJ
WRSURGXFHQHZYLYLGDQGVHGXFWLYHHQYLURQPHQWVZLWK PLVHVHQVFHQHZKLFKFRPELQHGRU
RIIHUHGLQVHTXHQFHPRGHUQLVWWUDGLWLRQDODQGH[RWLFGHFRUVDQWLFLSDWLQJRUSHUKDSV
XQGHUPLQLQJODWHWZHQWLHWKFHQWXU\SRVWPRGHUQLVP5RVDOLQG:LOOLDPVGHVFULEHVWKLVFRQVWDQW
UHQHZDOGLVGDLQIXOO\DVD
KRGJHSRGJHRIYLVXDOWKHPHV
+RZHYHU=ROD
VHQWKXVLDVWLF
DFFRXQWRIWKHH[KLELWLRQRISDUDVROVLQKLVILFWLRQDOGHSDUWPHQWVWRUHVXJJHVWVDVFHQDULR
ZKLFKKDVEHHQFDUHIXOO\GHVLJQHG
:LGHRSHQURXQGHGRIIOLNHVKLHOGVWKHSDUDVROVFRYHUHGWKHZKROHKDOOIURPWKH
JOD]HGURRIWRWKHYDUQLVKHGRDNPRXOGLQJVEHORZ7KH\GHVFULEHGIHVWRRQVURXQGWKH
VHPLFLUFXODUDUFKHVRIWKHXSSHUVWRUH\VWKH\GHVFHQGHGLQJDUODQGVDORQJWKHVOHQGHU
FROXPQVWKH\UDQDORQJLQFORVHOLQHVRQWKHEDOXVWUDGHVRIWKHJDOOHULHVDQGWKH
VWDLUFDVHVDQGHYHU\ZKHUHUDQJHGV\PPHWULFDOO\VSHFNOLQJWKHZDOOVZLWKUHGJUHHQ
DQG\HOORZWKH\ORRNHGOLNHJUHDW9HQHWLDQODQWHUQVOLJKWHGXSIRUVRPHFRORVVDO
HQWHUWDLQPHQW,QWKHFRUQHUVZHUHPRUHFRPSOLFDWHGSDWWHUQVVWDUVFRPSRVHGRI
SDUDVROVDWWKLUW\QLQHVRXVWKHOLJKWVKDGHVRIZKLFKSDOHEOXHFUHDPZKLWHDQG
EOXVKURVHVHHPHGWREXUQZLWKWKHVZHHWQHVVRIDQLJKWOLJKWZKLOVWXSDERYH
LPPHQVH-DSDQHVHSDUDVROVRQZKLFKJROGHQFRORXUHGFUDQHVVRDUHGLQDSXUSOHVN\
EOD]HGIRUWKZLWKWKHUHIOHFWLRQVRIDJUHDWFRQIODJUDWLRQ=ROD
7KHVHPDJQLILFHQWVWDJHVHWVDOVRVHUYHGDVEDFNGURSWROLYHHQWHUWDLQPHQWZKLFKZDV
SURYLGHGRQDUHJXODUEDVLV7KHUHZHUHOLYHRUFKHVWUDVLQWKHUHVWDXUDQWVDQGWHDURRPVDQG
HYHQRFFDVLRQDOO\LQWKHJURFHU\GHSDUWPHQWV'UHVVVKRZVDQGSDJHDQWVZHUHUHJXODU
RFFXUUHQFHV
6SHFWDFXODURULHQWDOH[WUDYDJDQ]DV
ZKLFKLQFOXGHGOLYHWDEOHDX[RI7XUNLVK
KDUHPV&DLURPDUNHWVRU+LQGXWHPSOHVZLWKOLYHSHUIRUPHUVGDQFHPXVLFDQGRIFRXUVH
RULHQWDOSURGXFWVZHUHDOVRIUHTXHQWHYHQWV,WLVLQWHUHVWLQJWRQRWHWKDWGXULQJWKLVSHULRG
WKHVHH[RWLFLVHG\HWFRPPHUFLDOUHSUHVHQWDWLRQVRI
RULHQWDO
LPDJHU\DQGQDUUDWLYHVZHUHD
PDMRUVRXUFHRISRSXODUNQRZOHGJHDERXW(PSLUHRWKHUFXOWXUHVDQGRWKHUDHVWKHWLF
IRUPDWLRQV/LEHUW\
VZKLFKIURPVSHFLDOLVHGLQ,QGLDQ3HUVLDQDQG$UDELFPHUFKDQGLVH
DQGWKHPHVZDVDSLRQHHULQWKHGHYHORSPHQWRIWKLVWUDGLWLRQ$QH[DPSOHRI6HOIULGJHV
FRVPRSROLWDQLVP
LQZKLFKLWWRRNJUHDWSULGHFDQEHVHHQLQ)LJ $QRWKHUUHFXUULQJ
IHDWXUHLQWKHHQWHUWDLQPHQWSURYLGHGE\WKHVWRUHVZDVWKHH[KLELWLRQDQGGHSOR\PHQWRIWKH
PRVWDGYDQFHGWHFKQRORJLHV5RVDOLQG:LOOLDPVGHVFULEHVKRZLQ)UDQFHQHZSKRWRJUDSKLF
WHFKQLTXHVZHUHXVHGIRUFLQHRUDPDVPDUHRUDPDVDQGGLRUDPDVWRFUHDWHWKHLOOXVLRQRI
WUDYHOOLQJQRWRQO\LQH[RWLFSODFHVEXWDOVRE\EDOORRQDERYHWKHVHDDQGWRWKHVXUIDFHRIWKH
PRRQ:LOOLDPV
,QDGGLWLRQWRWKHVHYLVXDOH[SHULHQFHVWKHGHSDUWPHQWVWRUHVSURYLGHGDYDVWUDQJHRIIDFLOLWLHV
WKDWHQKDQFHGWKHFRQYHQLHQFHFRPIRUWDQGSOHDVXUHRIVKRSSLQJ7KHVHLQFOXGHGVXSHUYLVHG
FKLOGUHQ
VDUHDVWRLOHWVDQGSRZGHUURRPVKDLUGUHVVLQJFRXUWVODGLHV
DQGJHQWOHPHQ
VFOXEV
DQGZULWLQJURRPVUHVWDXUDQWVDQGWHDURRPVURRIJDUGHQVZLWKSHUJRODV]RRVDQGLFHULQNV
OLEUDULHVSLFWXUHJDOOHULHVEDQNVWLFNHWDQGWUDYHODJHQFLHVJURFHU\SURYLVLRQDQGGHOLYHU\
VHUYLFHV6WDQGDUGVRIVHUYLFHZHUHKLJKDQGFXVWRPHUVZHUHPDGHWRIHHOZHOFRPHE\
REOLJLQJOLYHULHGGRRUPHQDQGGHIHUHQWLDO\HWDVWXWHDVVLVWDQWV$OLVRQ$GEXUJKDPFLWHVDQ
DUWLFOHZULWWHQE\/DG\-HXQHLQLQZKLFKVKHFRPPHQWVRQFRQWHPSRUDU\GHYHORSPHQWV
DQGLQSDUWLFXODURQWKHVLJQLILFDQFHRIWKHLQFUHDVHLQ ZRPHQ VKRSZRUNHUV
WZRYHU\LPSRUWDQWFKDQJHVKDYHFRQWULEXWHGWRWKHWHPSWDWLRQRI VSHQGLQJPRQH\
QRZDGD\V2QHLVWKHJDWKHULQJXQGHURQHURRIRIDOONLQGVRIJRRGVFORWKLQJ
PLOOLQHU\JURFHULHVIXUQLWXUHLQIDFWDOOWKHQHFHVVLWLHVRIOLIH1HDUO\DOOWKHJUHDW
VKRSVLQ/RQGRQDUHEHFRPLQJYDVWVWRUHV0DQ\PRUHSHRSOHQRZFRPHWR/RQGRQWR
VKRSDQGWKH\SUHIHUWRPDNHWKHLUSXUFKDVHVZKHUHWKH\FDQFRQFHQWUDWHWKHLUIRUFHV
DQGGLPLQLVKIDWLJXH7KHRWKHULVWKHODUJHQXPEHURIZRPHQQRZHPSOR\HG:RPHQ
DUHVRPXFKTXLFNHUWKDQPHQDQGWKH\XQGHUVWDQGVRPXFKPRUHUHDGLO\ZKDWRWKHU
ZRPHQZDQW7KH\FDQIDWKRPWKHDJRQ\RIGHVSDLUDVWRWKHDUUDQJHPHQWRIFRORXUV
WKHDOWHUQDWLYHWULPPLQJVWKHGXUDWLRQRIDIDVKLRQDQGWKHGHSWKRIDZRPDQ
VSXUVH
$GEXUJKDP
6RWKHGHSDUWPHQWVWRUHVSURYLGHGDVRXUFHRIHPSOR\PHQWIRUZRPHQDVZHOODVDZHOFRPLQJ
SODFHIRUWKHPWRVKRS
7KHSK\VLFDOVFDOHRIWKHVHVRFLRFRPPHUFLDOHQWHUSULVHVZDVKXJH,Q0DF\
VUHVWDXUDQW
LQ1HZ<RUNFRXOGDFFRPPRGDWHLQRQHVLWWLQJ+DUURGVRI.QLJKWVEULGJHZKLFK
SULGHGLWVHOIRQEHLQJ
WKHPRVWHOHJDQWDQGFRPPRGLRXVHPSRULXPLQWKHZRUOG
DQG
D
UHFRJQLVHGVRFLDOUHQGH]YRXVIRUPHPEHUVRI6RFLHW\
ZKHUHLWLV
SHUIHFWO\SURSHUIRUDODG\
WRPHHWDJHQWOHPDQ
KDGDWWKHWXUQRIWKHFHQWXU\HPSOR\HHVDQGWKLUW\VL[DFUHVRI
VKRSSLQJVSDFHRUJDQLVHGLQWRHLJKW\GLIIHUHQWGHSDUWPHQWV$GEXUJKDP&DOOHU\
6HOIULGJHVODXQFKHGE\WKH$PHULFDQHQWUHSUHQHXU*RUGRQ6HOIULGJHLQZDVWKHILUVW
SXUSRVHEXLOWVWRUHLQ%ULWDLQDQGZDVHYHQODUJHUWKDQ+DUURGV,WGLVWLQJXLVKHGLWVHOIIURP
+DUURGVE\WDUJHWLQJDPRUHPLGGOHDQGORZHUPLGGOHFODVVFOLHQWHOHDQGRIIHUHG
EDUJDLQ
EDVHPHQWV
IURPHDUO\RQ+RQH\FRPEH<HWLWWRRZDVGHVLJQHGWREHDVRFLDOPHHWLQJ
SODFHDQGWKHSXEOLFZDVHQFRXUDJHGWRFRPHDQGORRNZLWKRXWREOLJDWLRQWREX\7KH
SXEOLFLW\VORJDQVLQYLWHGSHRSOHWR
VSHQGWKHGD\DW6HOIULGJHV
DQGWKH\GLG
,W
VVRPXFK
EULJKWHUWKDQWKHLURZQKRPHV7KLVLVQRWDVKRSLW
VDFRPPXQLW\FHQWUH
0U6HOIULGJHLV
DOOHJHGWRKDYHVDLGDQGNHSWWKHGRRUVRSHQWLOOHLJKWRUODWHUDQGWKHZLQGRZGLVSOD\V
LOOXPLQDWHGXQWLOPLGQLJKW7KHVWRUHZDVFRQVLGHUHGRQHRIWKHJUHDWVKRZVLJKWVRI/RQGRQ
OLNH:HVWPLQVWHU$EEH\ZKLFKDOOYLVLWRUVIURPWKHSURYLQFHVDQGDEURDGZRXOGH[SHFWWRVHH
,QWKHSHULRGSULRUWR:RUOG:DU,WKHUHZDVDUHODWLYHVFDUFLW\RIIRUPVRISXEOLF
HQWHUWDLQPHQWFLQHPDDQGUDGLRZHUHWRWDNHRIIODWHUDQGSDUWO\EHFDXVHWKHVWRUHVZHUH
RSHQVRIDULQWRWKHHYHQLQJWKH\GLGLQGHHGEHFRPHWKHHQWHUWDLQPHQWFHQWUHVDQGPHHWLQJ
SRLQWVWKHLUIRXQGHUVHQYLVDJHG6HH)LJ6RPHDQ[LHW\ZDVH[SUHVVHGE\VRFLDOREVHUYHUV
DQGFXVWRPHUVDOLNHDERXWWKHPLQJOLQJRIVRFLDOFODVVHVZLWKLQWKHFRQILQHVRIWKHVWRUHVDQG
WKHUHZHUHZRUULHVDERXWWKHGLIILFXOWLHVRI
SODFLQJ
VRPH\RXQJZRPHQVKRSSHUVDQGVKRS
ZRUNHUVEHFDXVHRIWKHLUUHVSHFWDEOHDQGIDVKLRQDEOHDSSHDUDQFHV &RQFHUQZDVDOVRYRLFHG
DERXWWKHSRVVLELOLWLHVRILOOLFLWHQFRXQWHUVEHWZHHQPHQDQGZRPHQ:KLWHOH\
VRI%D\VZDWHU
KDGD
UHSXWDWLRQ
LQWKLVUHVSHFWWKRXJKZKDWWKLVVLJQLILHGLQ FRPPHUFLDOWHUPVLVRSHQWR
TXHVWLRQ,WLVFOHDUIURPWKHLQDXJXUDOSXEOLFLW\RI6HOIULGJH
VDVLWZDVWKHQFDOOHGWKDWWKH
SRVVLELOLW\RI
SOHDVXUH
DQG
UHFUHDWLRQ
LQWKHFRPSDQ\RIDJHQWOHPDQZDVGHOLEHUDWHO\
SUHVHQWHGDVSDUWRIWKHDOOXUHRIWKHVWRUH)LJ 6RLQJHQHUDOWKHEOXUULQJRIFODVV
GLYLVLRQVDQGWKHUHOD[DWLRQRIVRFLRVH[XDOSURKLELWLRQVWKRXJKLQVRPHUHVSHFWVULVN\ZHUH
FRQVLGHUHGQHFHVVDU\IRUWKHVRFLDODSSHDODQGFRPPHUFLDOVXFFHVVRIWKHVWRUHVDQGZHUH
OLNHO\WRKDYHEHHQMXVWLILHGLQVRIDUDVWKH\ZHUHPRGHUQ
9LVLWLQJWKHVWRUHVGXULQJWKLVSHULRGEHFDPHWKHQDQH[FXUVLRQDQH[FLWLQJDGYHQWXUHLQWKH
SKDQWDVPDJRULDRIWKHXUEDQODQGVFDSH7KHGHSDUWPHQWVWRUHZDVDQDQRQ\PRXV\HW
DFFHSWDEOHSXEOLFVSDFHDQGLWRSHQHGXSIRUZRPHQDUDQJHRIQHZRSSRUWXQLWLHVDQG
SOHDVXUHVIRULQGHSHQGHQFHIDQWDV\XQVXSHUYLVHGVRFLDOHQFRXQWHUVHYHQWUDQVJUHVVLRQ DV
ZHOODVDWWKHVDPHWLPHIRUUDWLRQDOLW\H[SHUWLVHDQGILQDQFLDOFRQWURO6KRSSLQJWULSV
VDQFWLRQHGE\GRPHVWLFDQGIDPLOLDOREOLJDWLRQVMXVWLILHGDVGLGWKHSKLODQWKURSLFH[SHGLWLRQV
UHIHUUHGWRHDUOLHUUHODWLYHO\IUHHPRYHPHQWDURXQGWKHFLW\DQGWUDYHORQSXEOLFWUDQVSRUWLQ
WKHSUR[LPLW\RIVWUDQJHUV7KHLQVSHFWLRQRIWKHPHUFKDQGLVHRQGLVSOD\LQWKHVKRSZLQGRZV
ZDVDQHFHVVDU\SDUWRIWKHDFWLYLW\VRWKHVWUHHWVDQGSDYHPHQWVLQWKHPDLQVKRSSLQJFHQWUHV
ZHUHPRQRSROLVHGE\ZRPHQRUGLQDU\PLGGOHFODVVZRPHQSDUWRIWKHHEEDQGIORZRIWKH
XUEDQFURZGJRLQJDERXWWKHLUEXVLQHVVRULQGXOJLQJWKHLUGUHDPVVRPHWLPHVDORQH
VRPHWLPHVZLWKIDPLO\RUIULHQGVVHH)LJ7KHGHSDUWPHQWVWRUHWRJHWKHUZLWKWKH
SUROLIHUDWLQJZRPHQ
VKRXVHKROGDQGIDVKLRQPDJD]LQHVDQGWKHSRSXODUVWRU\SDSHUVRIWKDW
SHULRGFRQWULEXWHGWRWKHFUHDWLRQRIPRGHUQIHPDOHLGHQWLWLHV%UHZDUG0HOPDQ
6WHLQ,WIDFLOLWDWHGWKHDFTXLVLWLRQRIFRQVXPHUNQRZOHGJHDQGHQDEOHGZRPHQWRPDNH
LQIRUPHGDQGLQGHSHQGHQWGHFLVLRQVDERXWVKRSSLQJ,WDOVRRIIHUHGDODQJXDJHWRLPDJLQHD
GLIIHUHQWDQGEHWWHUIXWXUHRQHLQZKLFKWKHLQMXULHVDQGZDQWVRIHYHU\GD\H[LVWHQFHFRXOGEH
VRRWKHGDQGIDPLO\OLYHVHQKDQFHG$QGLQDGGLWLRQLWSURYLGHGDVSHFWDFXODUHQYLURQPHQWLQ
ZKLFKWRVWUROODLPOHVVO\WREHDIODQHXVHWRREVHUYHSHRSOHWRDGPLUHDQGSDUDGHQHZ
IDVKLRQV7KLVZDVDFRQWH[WZKLFKOHJLWLPLVHGWKHGHVLUHRIZRPHQWRORRNDVZHOODVEH
ORRNHGDWLWHQDEOHGWKHPWREHERWKVXEMHFWDQGREMHFWRIWKHJD]HWRDSSURSULDWHDWRQHJR
WKHSOHDVXUHSRZHURIERWKWKHYR\HXUDQGWKHQDUFLVVLVW1L[RQ
7RGUDZDWWHQWLRQWRWKHH[FLWLQJDQGHPSRZHULQJDVSHFWVRIZRPHQ
VYLVLWVWRWKHVWRUHVLV
QRWWRGHQ\WKDWVKRSSLQJFDQDOVREHDUGXRXVWKDWDQRQ\PLW\DQGGHVLUHFDQEHUHUHDGPRUH
QHJDWLYHO\DVORQHOLQHVVDQGGLVVDWLVIDFWLRQ,WLVQHYHUWKHOHVVWRLQVLVWWKDWWKHVWRUHVDQG
VKRSSLQJEHUHFRJQLVHGDVRQHRIWKHPDLQFRQWH[WVLQZKLFKZRPHQGHYHORSHGDQHZ
FRQVFLRXVQHVVRIWKHSRVVLELOLWLHVDQGHQWLWOHPHQWVWKDWPRGHUQOLIHZDVDEOHWRRIIHU:LOOLDP
/HDFKLQKLVVWXG\RI$PHULFDQGHSDUWPHQWVWRUHVFRQFOXGHVWKXV
,QWKRVHHDUO\HXSKRULFGD\VRIFRQVXPHUFDSLWDOLVPWH[WXUHGVRPXFKE\WKH
GHSDUWPHQWVWRUHPDQ\ZRPHQWKRXJKWWKH\KDGGLVFRYHUHGDPRUHH[FLWLQJOLIH
7KHLUSDUWLFLSDWLRQLQFRQVXPHUH[SHULHQFHFKDOOHQJHGDQGVXEYHUWHGWKDWFRPSOH[RI
TXDOLWLHVWUDGLWLRQDOO\NQRZQDVIHPLQLQHGHSHQGHQFHSDVVLYLW\GRPHVWLFLQZDUGQHVV
DQGVH[XDOSXULW\0DVVFRQVXPHUFXOWXUHSUHVHQWHGWRZRPHQDQHZGHILQLWLRQRI
JHQGHUWKDWFDUYHGRXWDVSDFHIRULQGLYLGXDOH[SUHVVLRQVLPLODUWRPHQ
V/HDFK
/HDFK
VDUWLFOHDOVRHODERUDWHVRQWKHFRQQHFWLRQVEHWZHHQWKHGHSDUWPHQWVWRUHVDQGHDUO\
IHPLQLVWRUJDQLVDWLRQV,Q(QJODQGDVLQWKH8QLWHG6WDWHVWKHKLJKSRLQWRIWKHGHSDUWPHQW
VWRUHFRLQFLGHGZLWKWKHSHDN\HDUVRIVXIIUDJHWWHPLOLWDQF\7KHRZQHUVRIWKHGHSDUWPHQW
VWRUHVZHUHZHOODZDUHRIWKHLPSRUWDQFHRIWKHPRYHPHQWDQGVHYHUDOPDQXIDFWXUHG
GLVSOD\HGDQGVXSSOLHGDZLGHUDQJHRIJRRGVIURPWHDVHUYLFHVWRRXWHUJDUPHQWVLQSXUSOH
ZKLWHDQGJUHHQWKHV\PEROLFFRORXUVRIWKHVWUXJJOH7LFNQHU /HDFK/DQFDVWHU
7KH\SHUFHLYHGWKHLULQQRYDWLRQVLQUHWDLOLQJDVSDUWRIWKHVDPHPRGHUQLVLQJSURFHVVDV
ZRPHQ
VHPDQFLSDWLRQDQGVDZQRFRQIOLFWRILQWHUHVWEHWZHHQZRPHQ
VJURZLQJ
LQGHSHQGHQFHDQGWKHHFRQRPLFVXFFHVVRIWKHVWRUHV+DUOH\ *UDQYLOOH%DUNHU
VSOD\ 7KH
0DGUDV+RXVHRULJLQDOO\SXEOLVKHGLQLQFOXGHVDPRQJLWVFKDUDFWHUVDQ$PHULFDQ
GHSDUWPHQWVWRUHPDJQDWH(XVWDFH3HUULQ6WDWHZKRLVDQDYRZHGVXSSRUWHURIZKDWKH
UHIHUVWRDV
WKHJUHDWPRGHUQZRPHQ
VPRYHPHQW
$PDQ ZKRLVQRWFRQVFLRXVO\LQWKDW
PRYHPHQWLVRXWVLGHKLVWRU\
GHFODUHV6WDWH+DYLQJPDGHDFDUHIXOVWXG\RIWKHLVVXHV
LQYROYHGLQ
WKHZRPHQ
VTXHVWLRQ
KHFRQFOXGHVWKDWSROLWLFDOFODLPVIRUWKHYRWHFRQVWLWXWH
RQO\DVPDOOSDUWRILW,QKLVRSLQLRQ
WKHZRPHQ
VPRYHPHQWLVDERXWZRPDQH[SUHVVLQJ
KHUVHOI
+LVLQWHUHVWLVQRWXQUHODWHGWRKLVSRVLWLRQDVDVWRUHRZQHUEHFDXVHDVKHDOVRSRLQWV
RXW
WKHHFRQRPLFLQGHSHQGHQFHRIZRPHQLVWKHQH[WVWHSDIWHUWKHLUSROLWLFDOIUHHGRPLQ
WKHPDUFKRIFLYLOLVDWLRQ
*UDQYLOOH%DUNHU 7KHUHDUHSOHQW\RI
UHDO
DVZHOODV
ILFWLRQDOLQVWDQFHVRIVXSSRUWRUDWOHDVWDFNQRZOHGJPHQWE\WKHVWRUHVIRUWKHGHPDQGVRI
IHPLQLVP0RVWRYHUWZDVWKDWRI:DQDPDNHUVWKH$PHULFDQVWRUHZKLFKJDYHDOOZRPHQ
HPSOR\HHVWLPHRIIGXULQJZRUNLQJKRXUVWRPDUFKLQVXIIUDJHSDUDGHV/HDFK
5HVWDXUDQWVLQDQXPEHURIVWRUHVLQ(QJODQGEHFDPHWKHPHHWLQJSODFHVRIVXIIUDJHWWHVGXULQJ
WKHSHULRGZHDUHORRNLQJDW)HQZLFNVLQ1HZFDVWOHZDVDSSDUHQWO\SDUWLFXODUO\ZHOONQRZQ
IRUWKLV 0U6HOIULGJHZDVDQRWKHUH[DPSOHRIDVWRUHRZQHUZKRFODLPHGWRJLYHVXSSRUWWR
WKHHPDQFLSDWLRQRIZRPHQ
,FDPHDORQJMXVWZKHQWKH\ZDQWHGWRVWHSRXWRQWKHLURZQ
7KH\FDPHWRWKHVWRUHDQGUHDOLVHGVRPHRIWKHLUGUHDPV
KHLVVXSSRVHGWRKDYHVDLG
+RQH\FRPEH
%XWFRQVXPSWLRQRIFRXUVHLVDERXWPRUHWKDQHPDQFLSDWLRQRUWKHUHDOLVDWLRQRIGUHDPVRU
HYHQSROLWLFV,WLVDOVRFUXFLDOO\DERXWZRUN(IIHFWLYHUHWDLOLQJLVDQDEVROXWHO\LQWHJUDODVSHFW
RIPRGHUQFDSLWDOLVP:LWKRXWHIILFLHQWPDUNHWLQJZKLFKLQFOXGHVVKRSSLQJWKHSURGXFWLRQRI
JRRGVFHDVHVWREHSURILWDEOH<HWGHVSLWHWKHDEVROXWHFHQWUDOLW\RIFRQVXPSWLRQWRPRGHUQ
ZHVWHUQHFRQRPLFOLIHDQGGHVSLWHWKHFXOWXUDODQGVRFLDOUHVRQDQFHWKDW,GHVFULEHLQWKLV
FKDSWHUFRQVXPSWLRQDVODERXUXQOLNHSURGXFWLRQ KDVXQWLOUHFHQWO\EHHQUHPDUNDEO\
QHJOHFWHGERWKWKHRUHWLFDOO\DQGSROLWLFDOO\6KRSSLQJKDVEHHQRYHUORRNHGRUWULYLDOLVHGE\
HFRQRPLVWVVRFLRORJLVWVWKHOHIWDQGFXOWXUDOWKHRULVWV$V*UDQW0F&UDFNHQKDVSXWLW
7KH
KLVWRU\RIFRQVXPSWLRQKDVQRKLVWRU\QRFRPPXQLW\RIVFKRODUVQRWUDGLWLRQRIVFKRODUVKLS
6KRSSLQJLVDOVRWKHRUHWLFDOO\LQVLJQLILFDQWLQWKHOLWHUDWXUHRIPRGHUQLW\:K\
VKRXOGWKLVEH"
6KRSSLQJWKHFLQHPDDQGSXEOLFDQ[LHWLHV
,QRUGHUWRPDNHVHQVHRIWKLVKLVWRULFDOQHJOHFWZHPXVWORRNDWWKHEURDGHUFRQWH[WDWWKH
ZD\VLQZKLFKVKRSSLQJDQGDUDQJHRIDVVRFLDWHGPDVVFXOWXUDODFWLYLWLHVZHUHSHUFHLYHG
GXULQJWKLVFULWLFDOSHULRG:KDWHPHUJHVLVDFRPSOH[GLVFXUVLYHIRUPDWLRQFRPSRVHGRI
GLIIHUHQWVWUDQGVSRSXODUDQGLQWHOOHFWXDO KHOGWRJHWKHUQHYHUWKHOHVVE\FHUWDLQFRPPRQ
DQ[LHWLHVZKLFKVHHPLQH[WULFDEO\OLQNHGWRWKHJHQGHUHGQDWXUHRIVKRSSLQJ7KLVLVWKH
FRQWH[WIURPZKLFKWKHVHPLQDOWKHRUHWLFDODSSURDFKHVGHYHORSDQGZKLFKJRHVRQWRVKDSH
WKHZD\VWKHVHSURFHVVHVKDYHEHHQPRUHUHFHQWO\XQGHUVWRRG
)LUVWRIDOOWKHQLWPXVWEHQRWHGWKDWWKHH[SDQVLRQRIZRPHQ
VVRFLDODQGHFRQRPLFDFWLYLW\
LQWKHSXEOLFVSKHUHDVFRQVXPHUVFDPHDWWKHPRPHQWQRWRQO\RIJURZLQJVXIIUDJHWWH
PLOLWDQF\EXWDOVRZKHQPHQ
VZRUNDVSURGXFHUVZDVLQFUHDVLQJO\VXEMHFWWRQHZIRUPVRI
GLVFLSOLQHDQGUDWLRQDOLVDWLRQSDUWLFXODUO\LQWKH8QLWHG6WDWHVWKRXJKLQFUHDVLQJO\LQ(XURSH
7KLVZDVWKHSHULRGRIWKHHPHUJHQFHRI
)RUGLVP
WKHDVVHPEO\OLQHPDVVSURGXFWLRQDQG
)UHGHULFN7D\ORU
VWKHRULHVDERXW
VFLHQWLILFPDQDJHPHQW
ZKLFKZHUHGHVLJQHGWRLQFUHDVH
SURGXFWLYLW\E\V\VWHPDWLFREVHUYDWLRQDQGVWDQGDUGLVDWLRQRIKXPDQEHKDYLRXULQWKH
ZRUNSODFH7KHLPSOHPHQWDWLRQRI7D\ORULVPZKLFKHQWDLOHGDGHVNLOOLQJSURFHVVDVZRUN
EHFDPHPRUHURXWLQLVHGLQIOH[LEOHDQGUHTXLUHGOHVVWKRXJKWZDVQRWFRQILQHGWRIDFWRULHV,W
ZDVDSSOLHGLQFUHDVLQJO\WRRIILFHZRUNUHWDLOLQJDQGWKHVHUYLFHLQGXVWULHVVRUDWLRQDOLVDWLRQ
DOVRDIIHFWHGWKHPLGGOHFODVVHV7KHQHZV\VWHPDWLVHGZRUNSURFHVVHVZHUHRIWHQUHVLVWHGEXW
WKHUHVXOWLQJLQFUHDVHVLQSURGXFWLYLW\DQGHFRQRPLFVXUSOXVOHGWRKLJKHUZDJHVIRUZRUNHUV
ZKLFKHQDEOHGWKHPWRSD\IRUWKHUDQJHRIQHZFRPPRGLWLHVQRZDYDLODEOHDWORZHUSULFHVRQ
WKHPDUNHW(ZHQDQG*UDPVFL6FKZDU]:ROOHQ7KLV
LQFUHDVHGDELOLW\WRFRQVXPHDFWHGLQHIIHFWDVFRPSHQVDWLRQIRUWKHJUHDWHUPRQRWRQ\DQG
GXUHVVRIWKHZRUNSODFH%DXPDQ<HWLQLWVWXUQ WKLVFRPSHQVDWLRQZDVXQGHUPLQHGE\
WKHFRQWUDGLFWLRQEHWZHHQPHQ
VZRUNH[SHULHQFHVDQGWKRVHRIZRPHQEHFDXVHSUHFLVHO\DW
WKHPRPHQWWKDWPDQ\PHQZHUHH[SHULHQFLQJFRQVWUDLQWVLQWKHLUSODFHVRIHPSOR\PHQW
ZRPHQZHUHVWHSSLQJRXW7KHZRUNWKDWZRPHQZHUHGRLQJDVFRQVXPHUVXQOLNHPHQ
V
FRQWLQXHGWRUHTXLUHVXEVWDQWLDOOHYHOVRIVNLOODQGH[SHUWLVHDQGUHPDLQHGWKHRQHVHFWRURIWKH
PRGHUQSURGXFWLRQUHWDLOLQJF\FOHWKDWZDVXQ7D\ORULVHGDQGVHOIUHJXODWHG0RUHRYHUWKLV
ORRVHXQGLVFLSOLQHGDFWLYLW\DOWKRXJKHVVHQWLDOLQWHUPVRILWVHFRQRPLFSURGXFWLYLW\RIWHQ
WRRNSODFHLQWKHOX[XULRXVDQGV\PEROLFDOO\UHVRQDQWHQYLURQPHQWWKDW,KDYHDOUHDG\
GHVFULEHG
7KHLPDJLQHGIUHHGRPVDQGSOHDVXUHVWKDWWKHVHXQVXSHUYLVHGH[FXUVLRQVWRWKHGHSDUWPHQW
VWRUHVRIIHUHGWKHDPELJXRXVSRVLWLRQRIVKRSSLQJDVDQDFWLYLW\ZKLFKZDVQHLWKHUFOHDUO\
ZRUNQRUOHLVXUHDQGWKHILQDQFLDOFRQWURODQGVRFLDOSRZHUVDFFUXLQJWRVKRSSHUVWRJHWKHU
FRPELQHGWRJHQHUDWHDUDQJHRIDQ[LHWLHVQRWRQO\DPRQJWKH
SXEOLF
EXWDOVRDPRQJWKRVH
LQWHOOHFWXDOVZKRVHLGHDVFRQWULEXWHGWRWKHIRUPDWLRQRILGHDVDERXWPRGHUQLW\DQGPDVV
FXOWXUH6RPHRIWKHDQ[LHWLHVWRZKLFK,DPUHIHUULQJVXUIDFHDQGDUHHDVLO\LGHQWLILDEOHLQWKH
FRQWHPSRUDU\DFFRXQWVH[FDYDWHGE\WKHKLVWRULDQVRIWKHVWRUHV2WKHUVDUHPRUHHOXVLYHDQG
UHTXLUHGLIIHUHQWWRROVRIDQDO\VLVLQRUGHUWRPDNHVHQVHRIWKHP7KHDUJXPHQWKHUHLVWKDWDOO
DUHDVVRFLDWHGLQRQHZD\RUDQRWKHUZLWKWKHIHPLQLVDWLRQRIFRQVXPSWLRQZLWKWKHIDFWWKDWLW
ZDVPDLQO\ZRPHQ ZKRGLGWKHVKRSSLQJDQGWKDWWKHPRGHUQIRUPRIFRQVXPSWLRQZDV
FRQVROLGDWHGGXULQJDSHULRGLQZKLFKHDUOLHUVRFLDOFRQYHQWLRQVDQGERXQGDULHVDSSHDUHGWREH
UDSLGO\GLVVROYLQJ
$QXPEHURIDXWKRUVKDYHSURGXFHGZRUNIURPZKLFKFRQWULEXWHVWRWKHGHYHORSPHQWRID
VKDUSHUPRUHWH[WXUHGSLFWXUHRIWKHQDWXUHRIWKHXQHDVHWKDWVHHPHGVRSHUYDVLYHDQGRIWKH
ZD\LWPLJKWKDYHRSHUDWHGWRGHIOHFWDWWHQWLRQDZD\IURPWKLVSDUWLFXODUDVSHFWRIFRPPHUFH
7KHHQY\RIPHQFRQILQHGWRURXWLQH7D\ORULVHGMREVLQ WKHIDFHRIWKHH[SDQGLQJOLEHUW\DQG
UHVSRQVLELOLW\WKDWWKHQHZFRQVXPSWLRQHQWDLOHGKDVDOUHDG\EHHQDUJXHGIRU$QRWKHUOHVV
KLVWRULFLVHGZD\RIH[SODLQLQJWKLVHQY\FDQEHGHYHORSHGE\GUDZLQJRQSV\FKRDQDO\VLV7KLV
LVWKHDSSURDFKRI5RVDOLQG0LQVN\ZKRKDVH[SORUHGWKHXQFRQVFLRXVG\QDPLFSURFHVVHV
LQYROYHGLQWKHIRUPDWLRQRIHQY\SURYRNHGE\WKHIDQWDVLVHGLQGXOJHQFHRIGHVLUHDQGKDV
DUJXHGWKDWWKHVHQVHRIWKUHDWLVFRQVWLWXWHGWKURXJKWKHXQFRQVFLRXVLQWHUSUHWDWLRQRIWKH
ZRPDQVKRSSHUDVWKHSUH2HGLSDOSKDOOLFPRWKHU 7KLVNLQGRIDFFRXQWZKLFKGUDZV
DWWHQWLRQWRWKHIHDURIGHSHQGHQFHDVZHOODVJUHHGJRHVVRPHZD\WRZDUGVH[SODLQLQJWKH
FRQWLQXLQJDPELYDOHQFHRIPDQ\PHQLQFOXGLQJDFDGHPLFVWRWKHSURFHVVHVLQYROYHGLQ
VKRSSLQJ$PRUHKLVWRULFDOO\JURXQGHGYHUVLRQEXWQRWRQHZKLFKIRFXVHVRQJHQGHULV
RIIHUHGE\'DQLHO+RURZLW]ZKRLQYHVWLJDWHVWKHVKLIWVLQWKHQDWXUHRIWKHDQ[LHWLHVH[SUHVVHG
DERXWFRQVXPSWLRQLQWKH8QLWHG6WDWHVEHWZHHQWKHODWHQLQHWHHQWKFHQWXU\DQGWKHV
'XULQJWKHHDUOLHUSHULRGFRQFHUQLVRULHQWHGWRZDUGVWKHGDQJHUVRISURIOLJDF\SDUWLFXODUO\
DPRQJZRUNHUVDQGLPPLJUDQWV6XEVHTXHQWO\WKHHPSKDVLVLVRQWKHGDQJHUVWKHYDFXLW\ RI
PDVVFXOWXUH8QGHUO\LQJERWKSKDVHVKHDUJXHVLVWKHIHDURIORVVRIVHOIFRQWUROLQWKH
SXUVXLWRIFRPPRGLWLHVDQGSOHDVXUHVWKLVKRZHYHUVLWVXQHDVLO\ZLWKWKHUHFRJQLWLRQFXUUHQW
LQWKHVDPHPRUDOGLVFRXUVHWKDWVHOIGHQLDOLVQRWFRPSDWLEOHZLWKWKHLPSHUDWLYHVRI
HFRQRPLFJURZWK+RURZLW]
$Q[LHW\DERXWWKHORVVRIPRUDODQGILQDQFLDOFRQWUROJHQHUDWHGE\FRQVXPSWLRQLVFRQILUPHG
E\(ODLQH$EHOVRQZKRGRFXPHQWVWKHLQFUHDVHLQVKRSOLIWLQJE\UHVSHFWDEOHPLGGOHFODVV
ZRPHQIURPWKHGHSDUWPHQWVWRUHVGXULQJWKHVDPHSHULRG/RVVHVLQFXUUHGWKXVZHUH
QRWLQFRQVLGHUDEOHLQLQ1HZ<RUNDORQHWKH\ZHUHHVWLPDWHGWRUHDFKWKRXVDQGVRI
GROODUVDGD\<HWSURVHFXWLRQVZHUHRIWHQQRWFDUULHGRXWVLQFHPDQ\RIWKHZRPHQZHUHDOVR
YDOXHGFXVWRPHUVZLYHVRUGDXJKWHUVRIPHQTXLWHDEOHWRDIIRUGWKHSULFHRIJRRGVWKDWKDG
EHHQVWROHQ7KHLQHYLWDEOHSXEOLFLW\RIOHJDODFWLRQLQVXFKFDVHVZDVFRQVLGHUHG
FRXQWHUSURGXFWLYH7KHVWRUHVKDGWREHFDUHIXOWRPDLQWDLQWKHLUDWWUDFWLYHLPDJHWR
HQFRXUDJHGHVLUH\HWDWWKHVDPHWLPHQRWSHUPLWXQFRQWUROOHGLOOHJDOFRQVXPSWLRQ0HQQRW
VXUSULVLQJO\ZHUHDQ[LRXVLQFDVHWKHLUZRPHQIRONVXFFXPEHGWRWKHWHPSWDWLRQVRIWKHIWRU
XQFRQVLGHUHGEX\LQJLQWKHFRXUVHRIWKHLUVRFLDOO\VDQFWLRQHGVKRSSLQJWULSV7KLVLVWKH
FRQWH[WIURPZKLFKHPHUJHGWKHFRQVWUXFWRINOHSWRPDQLDFRQVLGHUHGIURPLWVLQFHSWLRQWREH
DQLOOQHVVRIPLGGOHFODVVZRPHQDQGDVVRFLDWHGVSHFLILFDOO\ZLWKGHSDUWPHQWVWRUHV$EHOVRQ
0LOOHU=ROD,QWHUHVWLQJO\DSRSXODUILOPRIWKHSHULRGHQWLWOHG7KH
.OHSWRPDQLDFGLUDGGUHVVHVSUHFLVHO\WKLVLVVXH,WLVDERXWDZHDOWK\ZRPDQJXLOW\RI
VWHDOLQJDGHFRUDWLYHLWHPIURPDVWRUHZKRLVQRWSURVHFXWHGDQGDSRRUZRPDQJXLOW\RI
VWHDOLQJDORDIRIEUHDGZKRLV(ZHQDQG(ZHQ7KHFRQWUDGLFWLRQLQKHUHQWLQWKH
FRPPHUFLDOSUDFWLFHVRIWKHGHSDUWPHQWVWRUHVZKLFKRQWKHRQHKDQGHQGRUVHGWKHFUHDWLRQRI
GHVLUHDQGRQWKHRWKHUUHIXVHGWRSURVHFXWH
UHVSHFWDEOH
FXVWRPHUVJXLOW\RIWKHIWLVDQ
H[DPSOHRIWKHGLVDYRZDOFRQVXPSWLRQVHHPVWRSURGXFH,WLVDOVRWKHUHLQWKHFRQWUDGLFWLRQ
KLJKOLJKWHGE\+RURZLW]EHWZHHQVHOIGHQLDODQGVSHQGLQJ
<HWDQRWKHUUHDGLQJRIWKHXELTXLWRXVDQ[LHWLHVDVVRFLDWHGZLWKFRQVXPSWLRQFDQEHHOLFLWHG
IURPWKHZRUNRI6WXDUW(ZHQZKRHPSKDVLVHVWKHGHFOLQLQJDXWKRULW\RIIDWKHUVDQGKXVEDQGV
LQWKHHDUO\GHFDGHVRIWKHFHQWXU\DVZRPHQJUDGXDOO\HQWHUWKHODERXUPDUNHWDQGDVWKHLU
PDQDJHULDOVWDWXVLQWKHKRPHLVUDLVHG(ZHQXQGHUVWDQGVWKLVDVDZHOFRPHGLPLQXWLRQRI
SDWULDUFKDOSRZHUDQG/HVVSRVLWLYHUHDGLQJVRIWKHSKHQRPHQRQDUHPDGHE\
&KULVWRSKHU/DVFKDQGPHPEHUVRIWKH)UDQNIXUW6FKRRODQGZLOOEHUHWXUQHGWRLQWKH
QH[WVHFWLRQ
([SUHVVLRQVRIFRQFHUQDERXWWKHHURVLRQRIPHQ
VFRQWURORYHUVSHQGLQJDQGPRQH\PHUJH
LQWRPXFKPRUHRYHUWO\VH[XDOLVHGQDUUDWLYHV(OHPHQWVRIVH[XDOIHDUIXOQHVVDQGULYDOU\
VXUIDFHLQPRVWRIWKHDFFRXQWVDERXWZRPHQDQGVKRSSLQJGXULQJWKLVSHULRG7KH
GHSDUWPHQWVWRUHVDUHDFFXVHGRI
XQOHDVKLQJSDVVLRQV
7HPSWDWLRQ
DQG
JXOOLELOLW\
EHFRPH
JURZLQJSUHRFFXSDWLRQV$Q[LHWLHVDUHYRLFHGDERXWWKH
LQWR[LFDWLRQ
FDXVHGE\WKH
VHQVXRXV
GLVSOD\RIJRRGV=RODWDONVDERXWWKH
ORQJLQJFRYHWRXVJD]H
RIZRPHQFXVWRPHUVDQGWKH
GDQJHURIEHLQJGHYRXUHGE\WKH
HURWLF
DQG
VHGXFWLYH
ZRUOGRIWKHVWRUH0LOOHULQKLV
DFFRXQWRIWKH%RQ0DUFKHLQ3DULVWHOOVXVRIDZRPDQZKRZDVDOOHJHGWRREWDLQPRUH
YROXSWXRXVVHQVDWLRQV
IURPWKHIHHORIVLONWKDQIURPKHUORYHU$IHZGHFDGHV
ODWHUZRPHQVKRSSHUVLQWKH8QLWHG6WDWHVDUHUHSUHVHQWHGDVFDSULFLRXVDQGHPRWLRQDO
FUDYLQJJODPRXUDQGURPDQFH0DUFKDQG,QWHUHVWLQJO\WKHVHVH[XDOPHWDSKRUVFRQWDLQ
HOHPHQWVRIERWKSDVVLYLW\DQGDFWLYLW\2QWKHRQHKDQGWKH\VHHPWRVXJJHVWWKHIHDUWKDW
LQQRFHQWZRPHQZLOOEHVHGXFHGDQGUDYLVKHG2QWKHRWKHUWKDWWKHVWRUHVZLOOUHOHDVHDQ
XQEULGOHGVH[XDOLW\DQRPLQRXVWUDQVJUHVVLYHQHVV=RODUHSUHVHQWVKLVZRPHQVDOHVKRSSHUVLQ
WKLVZD\DVSDUWRIDQDJJUHVVLYHDQGVH[XDOO\YRUDFLRXVPRE
7KHZRPHQUHLJQHGVXSUHPH7KH\KDGWDNHQWKHZKROHSODFHE\VWRUPFDPSLQJ
WKHUHDVLQDFRQTXHUHGFRXQWU\OLNHDQLQYDGLQJKRUGH=ROD
7KH\DGYDQFHGVORZO\NHSWXSULJKWE\WKHVKRXOGHUVDQGEHOOLHVRIWKRVH
DURXQGWKHPRIZKLFKWKH\IHOWWKHFORVHKHDWDQGWKHLUVDWLVILHGGHVLUHHQMR\HG
WKHSDLQIXOHQWUDQFHZKLFK LQFLWHGVWLOOIXUWKHUWKHLUFXULRXVLW\7KHUHZDVDSHOO
PHOORIODGLHVDUUD\HGLQVLONRISRRUO\GUHVVHGPLGGOHFODVVZRPHQDQGRI
EDUHKHDGHGJLUOVDOOH[FLWHGDQGFDUULHGDZD\E\WKHVDPHSDVVLRQ$IHZPHQ
EXULHGEHQHDWKWKHRYHUIORZRIERVRPVZHUHFDVWLQJDQ[LRXVJODQFHVDURXQG
WKHP=ROD
7KHIXUVZHUHVFDWWHUHGRYHUWKHIORRULQJWKHUHDG\PDGHFORWKHVZHUHKHDSHGXSOLNH
WKHJUHDWFRDWVRIZRXQGHGVROGLHUVWKHODFHDQGXQGHUOLQHQXQIROGHGFUXPSOHG
WKURZQDERXWHYHU\ZKHUHPDGHRQHWKLQNRIDQDUP\RIZRPHQZKRKDGGLVUREHG
WKHUHLQWKHGLVRUGHURIVRPHVXGGHQGHVLUH=RODFLWHGE\5RVV[YLL
7KHVHGHVFULSWLRQVQRWRQO\UHIHUXVEDFNWRWKHIHDUVRIXQFRQWDLQDEOHVH[XDOLW\WKDWWKHXUEDQ
FRQWH[WLWVHOIVHHPHGWRPRELOLVHGXULQJWKDWSHULRGDQGWKDWDUHDOOXGHGWRLQWKHVHFWLRQRI
WKLVFKDSWHURQWKHFLW\WKH\DOVRHYRNHWKHZD\LQZKLFKWKHFURZGWKHPRE KDVEHHQ
UHFXUULQJO\IHPLQLVHG$QGUHDV+X\VVHQPDNHVWKLVSRLQWLQWKHIROORZLQJZD\
0DOHIHDUVRIDQHQJXOILQJIHPLQLQLW\DUHSURMHFWHGRQWRWKHPHWURSROLWDQPDVVHV
ZKRGLGLQGHHGUHSUHVHQWDWKUHDWWRWKHUDWLRQDOERXUJHRLVRUGHU7KHIHDURIWKH
PDVVHVLQWKLVDJHRIGHFOLQLQJOLEHUDOLVPLVDOPRVWDOZD\VDOVRDIHDURIZRPDQDIHDU
RIQDWXUHRXWRIFRQWURODIHDURIWKHXQFRQVFLRXVRIVH[XDOLW\RIWKHORVVRILGHQWLW\
DQGVWDEOHHJRERXQGDULHVLQWKHPDVV
,WVHHPVWKHUHIRUHWKDWWKHORVVRIDXWKRULW\RYHUZRPHQVKRSSHUVFDQQRWEHGLVVRFLDWHGIURP
WKHVHPLFRQVFLRXVIHDURIWKHLUXQWUDPPHOOHGVH[XDOGHVLUHDQGRIWKHSRWHQWLDOHUXSWLRQRI
VRFLDOIRUFHV$QGLQIDFWVRPHRIWKHVHFRQQHFWLRQVZHUHIDLUO\H[SOLFLWO\PDGH7KHGHVLUHRI
RUGLQDU\ZRPHQIRU
ILQHU\
LQWKHODWH9LFWRULDQSHULRGZDVSHUFHLYHGQRWRQO\DQLQGLFDWLRQRI
VH[XDOLPPRUDOLW\EXWDOVRDVDQDWWHPSWWRULVHDERYHWKHLUVWDWLRQ9DOYHUGH7KH
GHFRPSRVLWLRQRIWKHYLVLEOHVLJQVRIFODVVGLVWLQFWLRQWKDWWKHGHSDUWPHQWVWRUHRIIHUHGWKH
FRQWLQXRXVLQFLWHPHQWRIGHVLUHWRSRVVHVVFRPPRGLWLHVWKHDVVRFLDWHGGLVFRQWHQWDQGWKH
SURPXOJDWLRQRIDVSLUDWLRQVIRUDEHWWHUOLIHGLGLQGHHGUHSUHVHQWDWKUHDWWRWKHVRFLDORUGHUDV
ZHOODVDWWKHVDPHWLPHDPRGHUQLVLQJIRUFH%HUPDQKDVSRLQWHGWRWKHHQHUJ\ZLWKZKLFK
WKHERXUJHRLVLHGLVUXSWHGWKHHDUOLHUUHJLPHV,QWKLVLQVWDQFHWKHLQFUHDVLQJDQG
GLVWXUELQJGLVLQWHJUDWLRQRIVRFLDOERXQGDULHVZDVSURGXFHGE\DFRQWUDGLFWRU\DOOLDQFH
EHWZHHQPRGHUQFDSLWDOLVWPHWKRGVRIUHWDLOLQJDQGZRPHQFRQVXPHUV
7KHDQ[LHWLHVDERXWFRQVXPSWLRQDQGZRPHQVKRSSHUVWKDWDUHRXWOLQHGKHUHKDYHEHHQ
GHGXFHGIURPDVSDUVHOLWHUDWXUH&RPPHUFHKDVQRWEHHQFRQVLGHUHGZRUWK\RIPXFK
LQWHOOHFWXDODWWHQWLRQDV,KDYHDOUHDG\SRLQWHGRXWDQGVRLVQRWDEOHWR\LHOGDWKHRUHWLFDO
FRPPHQWDU\RQWKHLVVXHVZKLFKLVDVH[WHQVLYHDVWKDWRQRWKHUFRPSDUDEOHDVSHFWVRIPDVV
FXOWXUH&LQHPDKDVSURGXFHGWKHULFKHVWDUFKLYHRIFRPPHQWDQGGHEDWHDQGLWLVIURPWKLV
VRXUFHWKDWLWLVSRVVLEOHWRLQIHUIXUWKHUHYLGHQFHRIDQ[LHW\DERXWVKRSSLQJDVZHOODVGHQLDO
RILWVWKHRUHWLFDOVLJQLILFDQFH6KRSSLQJZKHUHLWZDVUHIHUUHGWRDWDOOZDVTXLWHRIWHQ
DVVRFLDWHGZLWKFLQHPDJRLQJLQWKHSHULRGZHDUHORRNLQJDW'XULQJWKHHDUO\GHFDGHVRIWKH
FHQWXU\WKHFLQHPDOLNHWKHGHSDUWPHQWVWRUHH[SHULHQFHGDUHPDUNDEOHH[SDQVLRQ%\
WKHUHZHUHRYHUPRYLHKRXVHVDQGQLFNOHRGHRQVLQ1HZ<RUN&LW\ZLWKDQHVWLPDWHGWZR
PLOOLRQYLVLWVSHUZHHN3DULVKDGWZRFLQHPDVLQDQGE\LWKDG,Q*HUPDQ\WKH
QXPEHURIFLQHPDVURVHIURPWZRLQWRLQ,Q%ULWDLQLQWKHVDPH\HDUWKH
QXPEHURIFLQHPDVZDVHVWLPDWHGDWZLWKDZHHNO\DXGLHQFHRIVHYHQWRHLJKWPLOOLRQ
(ZHQDQG(ZHQ.XKQ0DVW2
6KHD:DUG7KHDXGLHQFHV
ZKRDWWHQGHGWKHVHPRYLHKRXVHVRU
GUHDPSDODFHV
DVWKHDJUHHDEOHQHZSXEOLFVRFLDO
VSDFHVZHUHTXLFNO\WREHFDOOHGHFKRLQJWKHODQJXDJHXVHGDERXWWKHVWRUHVZHUH
FRPSRVHGSUHGRPLQDQWO\RIZRPHQ\RXQJSHRSOHDQGFKLOGUHQ6HHERKP5RZQWUHH
HVWLPDWHGLQWKHVWKDWRIDOOFLQHPDJRHUVIHOOLQWRWKHVHFDWHJRULHV5LFKDUGV
'XULQJWKHGD\WLPHDXGLHQFHVZRXOGKDYHEHHQDOPRVWH[FOXVLYHO\PDGHXSRI
ZRPHQDQGWKH\RXQJDQGZRPHQRIWHQFRPELQHGWKHLUYLVLWVWRWKHFLQHPDZLWKWKHLU
VKRSSLQJWULSVRQWKHLUGD\H[FXUVLRQVWRWKHFLW\FHQWUHV
7KHOLWHUDWXUHDERXWWKLVSHULRGRIFLQHPDJRLQJLQGLFDWHVWKDWWKHUHZDVZLGHVSUHDGFRQFHUQ
DERXWWKHPRUDODQGSK\VLFDOFRQVHTXHQFHVSDUWLFXODUO\IRUWKHZRUNLQJFODVVDQGWKH\RXQJ
RIWKHFRQWHQWRIILOPVDQGWKHVRFLDODQGSK\VLFDOHQYLURQPHQWLQZKLFKWKH\ZHUHVKRZQ
.XKQ 0DVW:DUG&RQFHUQDERXWWKHVSHFLILFLQIOXHQFHRIFLQHPDJRLQJ
RQZRPHQKDVEHHQOHVVGRFXPHQWHGEXWLVDOVROLNHO\WRKDYHEHHQH[WHQVLYHDQGLQGHHG
0LULDP+DQVHQKDVDUJXHGLQUHODWLRQWRWKLVFRQMXQFWXUDOPRPHQWLQ*HUPDQ\WKDWWKH
UHVLVWDQFHWRFLQHPD
VFXOWXUDOUHVSHFWDELOLW\ZDVDFRQVHTXHQFHRIWKHWKUHDWSRVHGWRWKH
RUJDQLVDWLRQRISXEOLFVSDFHE\WKHKLJKSURSRUWLRQRIZRPHQFLQHPDJRHUV+DQVHQ
)XUWKHUPRUHZRPHQQRWRQO\ZHQWWRWKHFLQHPDXQDFFRPSDQLHGE\PHQRQFHWKHUHWKH\
ZHUHQRWHDVLO\GLIIHUHQWLDWHGIURPHDFKRWKHULQVRFLDOWHUPVKRXVHZLYHVVKRSZRUNHUVDQG
SURVWLWXWHVVDWDVVSHFWDWRUVLQFORVHSUR[LPLW\EOXUULQJSK\VLFDOO\DQGPHWDSKRULFDOO\WKH
ERXQGDULHVEHWZHHQWKHUHVSHFWDEOHDQGWKHXQUHVSHFWDEOH
,WLVFHUWDLQO\WKHFDVHWKDW
SDVVLYLW\
DQG
H[FHVVLYHH[FLWDWLRQ
DSSHDUDVUHFXUULQJ
SUHRFFXSDWLRQVLQPXFKRIWKHFRQWHPSRUDU\VRFLDOFRPPHQWDERXWPRYLHJRLQJDQGWKDW
WKHVHSHUVRQDODWWULEXWHVFRQWDLQVRPHRIWKHVDPHJHQGHUHGDQGVH[XDOLVHGFRQQRWDWLRQVWKDW
DUHUHSHDWHGLQWKHGLVFXVVLRQVDERXWZRPHQ
VYLVLWVWRWKHGHSDUWPHQWVWRUHV6RPHRIWKHVH
FRQQHFWLRQVEHWZHHQVKRSSLQJDQGFLQHPDJRLQJDUHTXLWHH[SOLFLWO\PDGHRWKHUVUHPDLQPRUH
FRGHGWREHXQFRYHUHGLQWKHFRXUVHRIDFORVHUH[DPLQDWLRQRIFULWLFDOUHVSRQVHVWRPDVV
FXOWXUHPRUHJHQHUDOO\7KHH[SOLFLWOLQNVPDGHKHUHDQGWKHUHDUHZKDWHQDEOHXVWRPDNHWKH
OHDSLQWRDQRWKHUGLVFRXUVHDQGDVVXPHWKDWWKHVWUXFWXUHVRIIHHOLQJGLVSOD\HGE\VRPHRIWKH
PRVWLQIOXHQWLDOFRPPHQWDWRUVRQFLQHPDDQGPDVVFXOWXUHGXULQJWKHILUVWKDOIRIWKLVFHQWXU\
KDYHVRPHWKLQJWRUHYHDOWRXVDERXWKRZVKRSSLQJZDVXQGHUVWRRGWKHQDQGFRQWLQXHVWREH
XQGHUVWRRGWRGD\LQUHODWLRQWRPRGHUQLW\$IHZH[DPSOHVIURPDVPDOOVHOHFWLRQRINH\
WKLQNHUVZLOOWUDFHWKLVFKDLQRIFXOWXUDODVVRFLDWLRQV
,QWHOOHFWXDOVFRQVXPSWLRQDQGPDVVFXOWXUH
/RXLV+DXJPDUGZDVDPRQJWKHILUVWFXOWXUDOFULWLFVWRFRQFHUQKLPVHOIZLWKWKHQHZIRUPRI
FLQHPD,QLQKLV$HVWKHWLFVRI&LQHPDFLWHGE\5RVDOLQG:LOOLDPVKHDQDO\VHVWKH
VSHFLILFFRPSOH[LWLHVRIILOPDVDPHGLXPDQGHODERUDWHVKLVFRQGHPQDWLRQRILWVVRFLDO
UDPLILFDWLRQVLWVHVFDSLVPDQGLWVDELOLW\WRGHFHLYHWKHQDLYHSXEOLF+HLVDPRQJWKRVH
FRPPHQWDWRUVZKRFRQVLGHUWKHPRYLHVHPRWLRQDOO\RYHUVWLPXODWLQJDQGLQWHOOHFWXDOO\
SDFLI\LQJDQGKHUHIHUVUHSHDWHGO\WRWKH
H[FLWDWLRQ
DQG
SDVVLYLW\
RIFLQHPDVSHFWDWRUV
0RUHRYHUDQGWKLVLVZK\KLVYLHZVDUHSHUWLQHQWKHUHKHPDNHVDTXLWHH[SOLFLWFRQQHFWLRQ
EHWZHHQVKRSSLQJDQGWKHFLQHPD
WKHSDVVLYHVROLWXGHRIWKHPRYLHJRHUUHVHPEOHVWKHEHKDYLRXURIGHSDUWPHQWVWRUH
VKRSSHUVZKRDOVRVXEPLWWRWKHUHLJQRILPDJHU\ZLWKDVWUDQJHFRPELQDWLRQRI
LQWHOOHFWXDODQGSK\VLFDOSDVVLYLW\DQGHPRWLRQDOK\SHUDFWLYLW\:LOOLDPV
6LHJIULHG.UDFDXHULVDQRWKHUFXOWXUDOFULWLFZKRRYHUDGHFDGHODWHUHFKRHVWKHDSSURDFKRI
+DXJPDUGLQKLVSLHFHHQWLWOHG
7KH/LWWOH6KRSJLUOVJRWRWKH&LQHPD
DQGH[SUHVVHVVLPLODU
IHDUVDERXWHPRWLRQDOLW\SDVVLYLW\DQGUHFHSWLYLW\DQGVLPLODUO\FRQQHFWVWKHVSKHUHVRI
VKRSSLQJDQGPRYLHJRLQJQRWRQO\PDWHULDOO\EXWDOVRV\PEROLFDOO\LQWKHYHU\WLWOHRIKLV
ZRUN.UDFDXHU+DNH3HWUR+DQVHQ
.UDFDXHUZDVSDUWRIDFLUFOHRILQWHOOHFWXDOVRIWHQORRVHO\UHIHUUHGWRDVWKH)UDQNIXUW6FKRRO
ZKLFKGXULQJWKHVJHQHUDWHGDQXPEHURIVHPLQDOFULWLTXHVRIFXOWXUDODQGVRFLDOLVVXHV
2YHUWKHODVWILIWHHQ\HDUVLQWKHFRQWH[WRIWKHHPHUJHQFHRIFXOWXUDOVWXGLHVDVDQDFDGHPLF
GLVFLSOLQHDQGZLWKWKHWUDQVODWLRQDQGUHSXEOLFDWLRQRI ZHOONQRZQDQGPRUHREVFXUH
HVVD\VWKHLQIOXHQFHRIWKHDQDO\WLFDODSSURDFKHVDQGFRQFHUQVRIWKRVHDVVRFLDWHGZLWKWKH
)UDQNIXUW6FKRROKDVEHHQFRQVROLGDWHGDQGLVQRZH[WHQVLYH,QWKLVVHFWLRQ,ZDQWWRVNHWFK
RXWVRPHRIWKHVXJJHVWLYHFRQQHFWLRQVDQGRPLVVLRQVZKLFKDSSHDULQWKLVZRUNDQGZKLFK
VXSSRUWP\JHQHUDOWKHVLVDERXWWKHDQ[LHWLHVRILQIOXHQWLDOFXOWXUDOWKLQNHUVDERXW
FRQVXPSWLRQ7KLVPHWKRGZLOOLQHYLWDEO\EHGHGXFWLYHVLQFHTXHVWLRQVRIFRQVXPSWLRQDQG
VKRSSLQJDUHVLPSO\QRWUDLVHGLQ PRVWRIWKHGHEDWHVDERXWPDVVFXOWXUH6RLQRUGHUWR
XQUDYHOZKDWPLJKWKDYHEHHQWKRXJKWFRQVFLRXVO\RUXQFRQVFLRXVO\LWZLOOEHQHFHVVDU\WR
UHDGWH[WVDJDLQVWWKHDSSDUHQWLQWHQWLRQVRIWKHLUDXWKRUVWRSXUVXHLQVLJKWVDFURVVDUJXPHQWV
DQGPRPHQWVDQGUHIRFXVVRWKDWWKHKLVWRULFDODQGSV\FKLFFRQWH[WIURPZKLFKLGHDVHPHUJH
LVVFUXWLQLVHGZLWKDVPXFKDWWHQWLRQDVWKHLGHDVWKHPVHOYHV
$XVHIXOVWDUWLQJSRLQWLV7KHRGRU$GRUQRDQG0D[+RUNKHLPHU
VFULWLTXHRIWKHFXOWXUH
LQGXVWU\SDUWO\EHFDXVHRILWVVWDWXVDVDFODVVLFDOPRVWLFRQLFSLHFHRIVRFLRSROLWLFDO
FRPPHQW$GRUQRDQG+RUNKHLPHUGUDZLQJRQERWK$PHULFDQDQG*HUPDQFXOWXUDO
H[DPSOHVDUHGHHSO\GLVWXUEHGDQGDQJHUHGE\ZKDWWKH\VHHDVWKHEDQDOLW\RIPRVWPDVV
FXOWXUHLWVGLVVLSDWLQJDPRUSKRXVQHVVDQGWULYLDOLW\ DQGWKH\WRRFRQGHPQWKH
SDVVLYLW\
DQG
ODFNRIGLVFULPLQDWLRQRIWKHFRQVXPHU2QHZD\RIPDNLQJVHQVHRIZKDWHPHUJHVIURPWKLV
WH[WVRPHWLPHVRQO\LQTXLWHFRGHGIRUPDVDYLUXOHQWGHQLJUDWLRQRIRUGLQDU\ DXGLHQFHVLVWR
WXUQWRWKHDXWKRUV
ZRUNRQWKHIDPLO\PXFKRILWZULWWHQLQWKHSUHFHGLQJGHFDGHZKLOHWKH\
ZHUHVWLOOLQ*HUPDQ\+RUNKHLPHU-D\+HOG3RVWHU:KDWHPHUJHV
IURPWKLVZULWLQJLVDVXUSULVLQJQRVWDOJLDIRUDQLGHDOLVHGIDPLO\RIWKHSDVWDQGDVHQVHRIORVV
DERXWWKHGHFOLQLQJDXWKRULW\RIWKHPRGHUQIDWKHULQUHODWLRQWRKLVZLIHDQGFKLOGUHQ0DVV
FXOWXUHKDVWKUHDWHQHGWKHSRWHQF\RIWKHIDWKHUDQGGLVSODFHGKLPDVWKHVRFLDOL]LQJDJHQWWR
ZKLFKZRPHQDQGFKLOGUHQQRZVXEPLW7KHEDODQFHRIIRUFHVZLWKLQWKHIDPLO\KDVEHHQ
WUDQVIRUPHG ,URQLFDOO\RQHZD\RIUHDGLQJWKHVHYLHZVLVWRVHHWKHPDVHYLGHQFHRI PHQ
V
SDVVLYLW\DVWKH\ZLWQHVVWKHUHRULHQWDWLRQRIZRPHQ
VGHVLUHVDZD\IURPWKHKRPHWRWKH
VHGXFWLYHHQYLURQPHQWRIWKHFLQHPDDQGVWRUHV:RPHQ
VVSHFWDWRUVKLSLQERWKWKHVHFRQWH[WV
LVLQFUHDVLQJO\DFWLYHDQGLQTXLULQJ0DQ\PHQ RUGLQDU\PHPEHUVRIWKHSXEOLFDVZHOODV
LQWHOOHFWXDOVDUHWKUHDWHQHGE\WKHLUH[FOXVLRQIURPWKHSOHDVXUHVDQGNQRZOHGJHWKDW
FRQVXPSWLRQRIIHUV 0DVVFXOWXUHHPHUJHVWKHQDVWKHGHVSLVHG\HWDOOXULQJULYDORIWKH
GLVSODFHGPDQ7KHLQVLVWHQFHRIWKHFXOWXUDOFULWLFVRQWKHSDVVLYLW\RIWKHFRQVXPHUFDQEH
UHUHDGDVGHQLDODVDGLVDYRZDORIWKHSURIRXQGDQ[LHW\DERXWORVVDQGGLVSODFHPHQWWKDWPDVV
FXOWXUHVHHPVWRHQJHQGHU
$QGUHDV+X\VVHQZKRVHLQGLFDWLYHO\HQWLWOHGSLHFH
0DVV&XOWXUHDV:RPDQ0RGHUQLVP
V
2WKHU
ZDVUHIHUUHGWRDERYHLQUHODWLRQWRWKHZD\WKHPDVVHVKDYHEHHQIHPLQLVHGH[SORUHVLQ
WKHVDPHDUWLFOHWKHZD\PDVVFXOWXUHOLNHZLVHKDVEHHQLQWULFDWHO\ERXQGXSZLWKSHMRUDWLYH
QRWLRQVRIWKHIHPLQLQH 0DVVFXOWXUHPRUHRYHUDOVRWDNHVRQWKHDWWULEXWHVRIWKH
IHPLQLVHGPDVVHVWKDWLVWRVD\LWLVIUHTXHQWO\GHSLFWHGDVHQJXOILQJLUUDWLRQDOVHQWLPHQWDO
DQGVRIRUWK7KXVLWLVFRQWUDVWHGQRWRQO\ZLWKPDVFXOLQLW\EXWDOVRZLWKFXOWXUDOPRGHUQLVP
ZKLFKLVKDUGULJRURXVDQGUDWLRQDODQGZKLFKKDVDOZD\VEHHQFRQFHUQHGWRGLVWDQFHLWVHOI
IURPWKHSRSXODU,QWHUHVWLQJO\IRUP\DUJXPHQWKHUH+X\VVHQSRLQWVRXWWKDW$GRUQR
+RUNKHLPHUDQG.UDFDXHUHDFKDWGLIIHUHQWWLPHVH[SOLFLWO\VH[XDOLVHVDQGHQJHQGHUVPDVV
FXOWXUH)RUH[DPSOH$GRUQRDQG+RUNKHLPHUDUJXHWKDWPDVVFXOWXUH
FDQQRWUHQRXQFHWKH
WKUHDWRIFDVWUDWLRQ
+X\VVHQ $GRUQRRIFRXUVHLVDOVRNQRZQIRUKLVGHIHQFHRI
PRGHUQLVPDQGKLJKFXOWXUDODHVWKHWLFVDJDLQVWWKHHQFURDFKLQJFRQWDPLQDWLRQRIPDVVFXOWXUH
+X\VVHQ
VDUJXPHQWDERXWWKHIHPLQLVDWLRQRIPDVVFXOWXUHDQGPLQHDERXWPDVVFXOWXUHDQG
FRQVXPSWLRQDVWKHULYDORI WKHPDOHDUHREYLRXVO\GLIIHUHQW\HWWKH\DUHQRWLQFRPSDWLEOH
,QGHHGSDUDGR[LFDOO\WKH\FRQILUPDQGFRPSOHPHQWHDFKRWKHUPHWKRGRORJLFDOO\%RWKRSHUDWH
LQV\PEROLFUHJLVWHUVDVPHWDSKRUVDQGFHQWUHVWDJHWKHZD\LQZKLFKXQFRQVFLRXV
SURFHVVHVDUHDWZRUNLQWKHIRUPDWLRQRILQWHOOHFWXDOSRVLWLRQV%RWKLQVLVWWKDWWKHVHPXVWEH
URRWHGLQVSHFLILFKLVWRULFDOFRQWH[WVDQGQDUUDWLYHV
:DOWHU%HQMDPLQLVDQRWKHULQIOXHQWLDOFRQWULEXWRUWRWKHGHEDWHDERXWPDVVFXOWXUH+LV
XQFRPSOHWHGDQGODUJHO\XQSXEOLVKHG3DVVDJHQ:HUN7KH$UFDGHV3URMHFWUHFRQVWUXFWHGDQG
GHYHORSHGZLWKH[WUDRUGLQDU\LQVLJKWDQGHOHJDQFHE\6XVDQ%XFN0RUVV LVRQHRI
WKHIHZDWWHPSWVWRWKHRULVHWKHVLJQLILFDQFHRIVKRSSLQJDUFDGHVLQUHODWLRQWRPRGHUQLW\DQG
FRPPRGLW\ FDSLWDOLVPDQGLQFRQMXQFWLRQZLWKKLVRWKHUZRUNRQFXOWXUHDQGFLQHPD
FRQWLQXHVWRKDYHDSURIRXQGLQIOXHQFHRQFRQWHPSRUDU\GHEDWHV,QWKHFRQWH[WRIWKH
DUJXPHQWZKLFKLVEHLQJSXWIRUZDUGKHUH%HQMDPLQPXVWEHGLVWLQJXLVKHGIURPRWKHU
DVVRFLDWHVRIWKH)UDQNIXUW6FKRRO+LVFULWLFLVPVRIPDVVFXOWXUHDUHDWOHDVWLQVRPHSODFHV
IDUPRUHWHPSHUHGDQGFRPSOH[DQGKHDUJXHVIRUWKHDHVWKHWLFDQGSROLWLFDOSRVVLELOLWLHVRI
SRSXODUFXOWXUDOIRUPV +HLVQRWRQO\OHVVSHVVLPLVWLFDERXWPDVVFXOWXUHDQGWKHDGYHQWRI
PRGHUQLW\ DERXW
PRGHUQLW\
VUXSWXUHRIWUDGLWLRQ
KHDOVRZHOFRPHVWKHGHFOLQHRI
WKH
DQWLTXDULDQHIIHFWRIWKHIDWKHURQKLVVRQ
%XFN0RUVVSXWVLWWKXV
,QDZRUOGRIREMHFWVWKDWFKDQJHGLWVIDFHGUDVWLFDOO\LQWKHFRXUVHRIDJHQHUDWLRQ
SDUHQWVFRXOGQRORQJHUFRXQVHOWKHLUFKLOGUHQ7KHUXSWXUHRIWUDGLWLRQZDV
LUUHYRFDEOH)DUIURPODPHQWLQJWKHVLWXDWLRQ%HQMDPLQVDZSUHFLVHO\KHUHPRGHUQLW\
V
XQLTXHO\UHYROXWLRQDU\SRWHQWLDO7KHUXSWXUHRIWUDGLWLRQIUHHVV\PEROLFSRZHUVIURP
FRQVHUYDWLYHUHVWUDLQWVIRUWKHWDVNRIVRFLDOWUDQVIRUPDWLRQ%HQMDPLQLQVLVWHG:H
PXVWZDNHXSIURPWKHZRUOGRIRXUSDUHQWV%XFN0RUVV
1HYHUWKHOHVVKLV$UFDGHV3URMHFWLVDOVRDWWKHVDPHWLPHIXOORIDGHHSO\IHOWDPELYDOHQFH
DERXWWKHWHPSWDWLRQVRIWKHPHWURSROLWDQZRUOGRIFRQVXPSWLRQDQGVSHFWDFOHWKHXUEDQ
SKDQWDVPDJRULDZKLFKERWKGD]]OHVDQGGHFHLYHVWKHFURZG7KHZRUOGRIFRPPRGLWLHVLV
DERXWLOOXVLRQ9DOXHLVHFOLSVHGE\UHSUHVHQWDWLRQDQGGLVSOD\%HQMDPLQLVVLPXOWDQHRXVO\
IDVFLQDWHGDQGJXLOW\ERWKOXVWIXODQGUHSHOOHGE\WKHOX[XU\DQGGHFDGHQFHRIFLW\OLIH$V
(OL]DEHWK:LOVRQKDVVXJJHVWHGKLVYLHZVDUHDWRQFHXWRSLDQDQGG\VWRSLDQ+HLVDOVR
PDQLIHVWO\DPELYDOHQWWRZDUGVZRPHQZKHUHKHFRQVLGHUVWKHPDWDOO ,QPRVWRI%HQMDPLQ
V
ZRUNLWLVWKHSURVWLWXWHZKRLVSUHVHQWHGDVWKHNH\IHPDOHILJXUHLQWKHLFRQRJUDSK\RIWKH
FLW\DQGDWWKHVDPHWLPHDVWKHHPERGLPHQWRIFRPPRGLILFDWLRQ,Q 3DVVDJHQZHUNKH
DUJXHVWKDWZRPHQXVHIDVKLRQWRFRYHUXSWKH
UHDOLW\RIQDWXUDOGHFD\
WKDWIDVKLRQ
HQFRXUDJHVWKHIHWLVKLVWLFIUDJPHQWDWLRQRIWKHOLYLQJERG\
:HVHHKHUHWKHDVVRFLDWLRQ
%HQMDPLQPDNHVEHWZHHQZRPHQFRPPRGLWLHVDQGFRQVXPSWLRQ:RPHQOLNHFRPPRGLWLHV
DUHDERXWVXUIDFHVDQGLOOXVLRQ<HWDPRQJKLVQRWHVIRU3DVVDJHQZHUNDQGRQFHPRUH
LQGLFDWLYHRIKLVFRQWUDGLFWRU\IHHOLQJVKHVXJJHVWVDOVRWKDWIDVKLRQFDQEH
LUUHYHUHQWWRZDUGV
WUDGLWLRQDQGHPEOHPDWLFRIVRFLDOFKDQJH
%XFN0RUVV
7KLVPDMRUZRUNLVDXQLTXH\HWFRQWUDGLFWRU\DQGIUDJPHQWHGDWWHPSWWRXQGHUVWDQG
FRQVXPSWLRQ7KHDPELYDOHQFHWRFRPPHUFHZKLFKLVH[SUHVVHGWKURXJKRXWFDQ,WKLQNEH
WUDFHGLQSDUWWR%HQMDPLQ
VUHFXUULQJSUHRFFXSDWLRQZLWKJHQHUDWLRQDOGLIIHUHQFHDQGKLV
IUHTXHQWO\GRFXPHQWHGFRQIOLFWVZLWKKLVRZQIDWKHUDILQDQFLHUZKRLQYHVWHGLQLQQRYDWLYH
XUEDQSURMHFWVDPRQJWKHPDGHSDUWPHQWVWRUHDQGLFHULQN6RPHRIZKDW%HQMDPLQ
FRQVLGHUHGKLVIRUPDWLYHFRPPHUFLDODQGHURWLFH[SHULHQFHVDUHUHFRXQWHGLQKLV
DXWRELRJUDSKLFDOHVVD\
$%HUOLQ&KURQLFOH
,ZDVPRVWODVWLQJO\DIIHFWHGZKHQLQDERXWP\IDWKHUFRQFHLYHGWKHLGHDRI
WDNLQJPHWR7KH,FH3DODFH>ZKLFKZDV@QRWRQO\WKHILUVWDUWLILFLDOLFHULQNWREHVHHQ
LQ%HUOLQEXWDOVRDWKULYLQJQLJKWFOXE0\DWWHQWLRQZDVKHOGE\WKHDSSDULWLRQVDW
WKHEDU$PRQJWKHVHZDVDSURVWLWXWHLQDYHU\WLJKWILWWLQJZKLWHVDLORU
VVXLWZKR
GHWHUPLQHGP\HURWLFIDQWDVLHVIRU\HDUVWRFRPH
,QWKRVHHDUO\\HDUV,JRWWRNQRZWKH
WRZQ
RQO\DVDWKHDWUHRISXUFKDVHV
>ZKHUH@P\IDWKHU
VPRQH\FXWDSDWKIRUXVEHWZHHQWKHVKRSFRXQWHUVDQGDVVLVWDQWV
DQGPLUURUVDQGWKHDSSUDLVLQJH\HVRIRXUPRWKHUZKRVHPXIIOD\RQWKHFRXQWHU,Q
WKHLJQRPLQ\RID
QHZVXLW
ZHVWRRGWKHUHRXUKDQGVSHHSLQJIURPWKHVOHHYHVOLNH
GLUW\ SULFHWDJVDQGLWZDVRQO\LQWKHFRQIHFWLRQHUVWKDWRXUVSLULWVURVHZLWKWKH
IHHOLQJRIKDYLQJHVFDSHGWKHIDOVHZRUVKLSWKDWKXPLOLDWHGRXUPRWKHU&DYHUQVRI
FRPPRGLWLHVWKDWZDVWKH
WRZQ
%HQMDPLQD
+DQQDK$UHQGWLQKHULQWURGXFWLRQWRWKHFROOHFWLRQRI%HQMDPLQ
VHVVD\V,OOXPLQDWLRQV
GLVFXVVHVWKHLQVROXELOLW\RIWKH-HZLVKTXHVWLRQIRU-HZLVKLQWHOOHFWXDOVRI%HQMDPLQ
V
JHQHUDWLRQ
EHFDXVHDOOWUDGLWLRQVDQGDOOFXOWXUHVDVZHOODVDOOEHORQJLQJKDGEHFRPHHTXDOO\
TXHVWLRQDEOHWRWKHP
$UHQGW7KLVUHIXVDORIWUDGLWLRQFDVWVDGGLWLRQDOOLJKWRQ
%HQMDPLQ
VKRVWLOLW\WRZKDWKLVSDUHQWVUHSUHVHQWHGWRFRPPHUFHDQGWKHQFHKLVURXWHWR
FRPPRGLW\IHWLVKLVP
'HPHW]LQWHUSUHWVWKHFRQIOLFWVOLJKWO\GLIIHUHQWO\
,QPDQ\-HZLVKIDPLOLHVRIODWHQLQHWHHQWKFHQWXU\(XURSHJLIWHGVRQVWXUQHGDJDLQVW
WKHFRPPHUFLDOLQWHUHVWVRIWKHLUIDWKHUVZKRZHUHODUJHO\DVVLPLODWHGWRERXUJHRLV
VXFFHVVDQGLQEXLOGLQJWKHLUFRXQWHUZRUOGVLQVSLULWXDOSURWHVWWKH\LQFLVLYHO\VKDSHG
WKHIXWXUHRIVFLHQFHSKLORVRSK\DQGOLWHUDWXUH$UWLFXODWLQJDQLQVLJKWRIIDUUHDFKLQJ
LPSOLFDWLRQV.DUO.UDXVWKHEHOOLJHUHQW9LHQQHVHVDWLULVWVXJJHVWHGLQKLV0DJLFDO
2SHUHWWDPXFKHQMR\HGE\%HQMDPLQWKDWOLWWOH-HZLVKIDPLO\GUDPDVZHUHEHLQJ
SOD\HGRXWDOORYHUWKHVWHUQIDWKHUVFRQFHUQHGZLWKEXVLQHVVDQGWKHVSLULWXDOVRQV
ZLWKWKHOHVVSURILWDEOHPDWWHURIWKHSXUHPLQG'HPHW]L[
$PRQJVXFKVRQV'HPHW]LQFOXGHV)UHXG+XVVHUO.DINDDQGRIFRXUVH%HQMDPLQKLPVHOIIRU
ZKRP
WKHIXQGDPHQWDOSDWWHUQUHDVVHUWVLWVHOIZLWKSDUWLFXODUFODULW\
'HPHW]L[
%HQMDPLQ
VDQWDJRQLVPWRZDUGVKLVSDUHQWVDQGKLVIDWKHULQSDUWLFXODUUHIHUUHGWRLQKLVRZQ
DXWRELRJUDSKLFDOZRUNDVZHOODVLQWKHELRJUDSKLFDODFFRXQWVRI$UHQGWDQG'HPHW]
FRQWULEXWHVWRRXUXQGHUVWDQGLQJRIKLVUHIXVDOXQOLNH$GRUQRDQG+RUNKHLPHUWRODPHQWWKH
GHFOLQHRISDWHUQDODXWKRULW\LQWKHIDPLO\DQGKHOSVH[SODLQKLV
IRUZDUGORRNLQJQHVV
KLV
RSWLPLVPDERXWWKHSRVVLELOLWLHVRIWKHPRGHUQ$FRQQHFWLRQ FDQDOVREHPDGHEHWZHHQKLV
DPELYDOHQFHWRZDUGVFRPPHUFHKLVVLPXOWDQHRXVIDVFLQDWLRQDQGUHSXGLDWLRQRIWKH
WKHDWUHV
RISXUFKDVHV
DQG
FDYHUQVRIFRPPRGLWLHV
WKDW
FUHDWHIDOVHZRUVKLS
DQGWKHDQWL6HPLWLF
FOLPDWHRIFHQWUDO(XURSHLQWKHVGHVFULEHGE\*UHJRUYRQ5H]]RULLQKLV0HPRLUVRIDQ
$QWL6HPLWHLQZKLFK
&RPPHUFHSHUVHZDVHPEDUUDVVLQJDQ\WKLQJFRQQHFWHGZLWKVHOOLQJLQ
DVWRUHZDVEHORZVRFLDODFFHSWDQFH7KLVZDVDSULYLOHJHRIWKH-HZV
YRQ5H]]RUL
7KHKXPLOLDWLQJDQWL6HPLWLFWDUJHWLQJRIFRPPHUFHDERXWZKLFK%HQMDPLQPXVWKDYHIHOW
HQRUPRXVO\FRQWUDGLFWRU\ZDVDFWXDOLVHGGXULQJWKHSHULRGRIKLVLPPHUVLRQLQWKHZULWLQJRI
3DVVDJHQ:HUNE\WKHRIILFLDOO\DXWKRULVHG1D]LER\FRWWVRI-HZLVKRZQHGGHSDUWPHQWVWRUHV
LQ%HUOLQZKLFKLQ$SULOZHUHDPRQJWKHILUVWSURSDJDQGDDVVDXOWVRI+LWOHU
VQHZO\
HOHFWHGJRYHUQPHQW)URPP)UHL
7KHVHFRQWH[WXDOIDFWRUVKHOSWRPDNHVHQVHRI%HQMDPLQ
VHTXLYRFDODQGXQFRPSOHWHGDQDO\VLV
RIFRQVXPSWLRQDVZHOO DVKLVRULHQWDWLRQWRZDUGVWKHIXWXUHKLVPRGHUQLVPLQ%HUPDQ
V
WHUPV7KH\GRQRWWKRXJKH[SODLQKLVODFNRIVHULRXVDWWHQWLRQWRWKHZD\VLQZKLFK
FRQVXPSWLRQLVJHQGHUHGWRWKHZD\VRUGLQDU\PRGHUQZRPHQPLJKWEHSODFHGLQUHODWLRQWR
WKHPRGHUQLW\ DQGVKRSVKHVRPHWLFXORXVO\UHSUHVHQWV7KLVRPLVVLRQWKLVIDLOXUHWRH[SORUH
WKHVLJQLILFDQFHRIWKHIHPLQLVDWLRQRIVXFKDFUXFLDODVSHFWRIFRPPRGLW\FDSLWDOLVPDQGPDVV
FXOWXUHPXVWDOVREHXQGHUVWRRGOLNHWKHVLPLODURPLVVLRQVRIRWKHULQWHOOHFWXDOVRIWKLVDQG
HDUOLHUSHULRGVLQWKHFRQWH[WRIWKHEURDGHUVRFLDODQGSV\FKLFWUDQVIRUPDWLRQVRIWKHSHULRG
7KHVKLIWLQJEDODQFHRIIRUFHVEHWZHHQPHQDQGZRPHQLQWKHIDPLO\DQGWKHJURZLQJ
LQGHSHQGHQFHRIZRPHQKDYHDOUHDG\EHHQUHIHUUHGWR7KLVSHULRGZDVDOVRDIIHFWHGE\WKH
WUDXPDWLFDQGGHKXPDQLVLQJVODXJKWHURIWKHILUVWZRUOGZDU&KDOOHQJHVWRWKHFRQVWUDLQWVDQG
FRQYHQWLRQVRIIHPLQLQLW\UHDFKHGDSDUWLFXODUO\IUHQ]LHGSDFHGXULQJWKHLQWHUZDU\HDUVDQG
PHVKHGZLWKDQ[LHWLHVDERXWWKHGHPRJUDSKLFFULVLVDQGWKHQXPHULFDOGLVSDULW\RIWKHVH[HV
UHVXOWLQJIURPWKHZDU&RQFHUQVDERXW
VXSHUIOXRXV
ZRPHQ ZKRLQWKHSRSXODULPDJLQDWLRQ
ZHUHDOVR
QHZ
ZRPHQIODSSHUVKHGRQLVWVIHPLQLVWVZRUNHUVYRWHUVFDQEHUHDGDV
HYLGHQFHRIDFULVLVRI PDVFXOLQLW\RIPHQ
VIHDURIEHLQJGLPLQLVKHGVZDPSHGDQGFRQVXPHG
0HOPDQ.RKQ.ODXV7KHZHOHLWKDVDQDO\VHGWKHFXOWXUDOGUHDGRI
GLVVROXWLRQDQGHQJXOIPHQWH[KLELWHGGXULQJWKLVSHULRGLQWKHZULWLQJDQGIDQWDVLHVRI*HUPDQ
)UHLNRUSVVROGLHUVZKRZHUHODWHUWREHFRPHWKHYDQJXDUGRIWKH1D]LSDUW\+HPDNHVWKH
SRLQWWKDWVRPHRIWKHVHIHDUVDUHDUWLFXODWHGE\PHQRIWKHOHIWDVZHOO,WZRXOGQRWEH
VXUSULVLQJWKHUHIRUHLQDFRQWH[WLQZKLFKDGGLWLRQDOO\*HUPDQVRFLDOLVWIHPLQLVPZDVVWLOO
UREXVWDQGWKH:HLPDU6H[5HIRUPPRYHPHQWGHVLJQHGWRDGGUHVVWKHVH[XDOLQWHUHVWVRIWKH
QHZZRPDQKDGDPHPEHUVKLSRI*URVVPDQQ7KRQQHVVHQWRILQGD
FHUWDLQDPELYDOHQFHDERXWZRPHQDQGDFHUWDLQEOLQGQHVVDERXWWKHIHPLQLVDWLRQRIPDVV
FXOWXUHDQGFRQVXPSWLRQLQWKHZRUNRIWKHFXOWXUDOFULWLFVRIWKHSHULRG
&RQFOXVLRQ
2QHRIWKHLQQRYDWLRQVRIIHPLQLVWWKRXJKWKDVEHHQWRDOHUWXVWRWKHXQSUHGLFWDEOHDQGFRYHUW
ZD\VRIWKHV\PEROLFZRUOG,WKDVHQFRXUDJHGXVWRSRVHGLIIHUHQWNLQGVRITXHVWLRQVRIWH[WV
DXWKRUVDQGVRFLDOSURFHVVHV,QWKLVSLHFHRIZRUNP\SURMHFWKDVEHHQWRH[FDYDWHWKH
GLIIHUHQWFRQWH[WVLQZKLFKLQIOXHQWLDOLGHDVDERXWZRPHQPRGHUQLW\DQGFRQVXPSWLRQKDYH
GHYHORSHGDQGWRUHIRFXVWKHRUHWLFDOLQYHVWLJDWLRQRQWRJDSVDQGLQIOHFWLRQVDVZHOODV
HPSKDVHV:KDWKDVHPHUJHGIURPWKLVUHVHDUFKLVDKLVWRU\SLWWHGE\DPELYDOHQFHDQGGHQLDO
0RGHUQLW\DVDQDUUDWLYHDQGH[SHULHQFHKDVWXUQHGRXWWREHIDUPRUHSURIRXQGO\PDUNHGE\
WKHPDWHULDO DQGLPDJLQHGSUHVHQFHRIZRPHQWKDQWKHFODVVLFDFFRXQWVKDYHDOORZHG<HW
FRQVXPSWLRQWKHVSKHUHLQZKLFKZRPHQ
VSDUWLFLSDWLRQKDVEHHQVRFXOWXUDOO\DQG
HFRQRPLFDOO\GHILQLWLYHKDVEDUHO\EHHQDGGUHVVHGE\WKHDFDGHP\ :KDW,KDYHWULHGWR
DUJXHKHUHLVWKDWWKLVGLVFXUVLYHPDUJLQDOLVDWLRQPXVWEHXQGHUVWRRGSDUWO\DVDFRQVHTXHQFH
RIWKHDVVRFLDWLRQRIFRQVXPSWLRQZLWKWKHGHVWDELOLVDWLRQRIQLQHWHHQWKFHQWXU\IHPLQLQLWLHV
DQGWKHHPHUJHQFHRIWKHQHZZRPDQ8QHDV\SXEOLFIHDUVSURYRNHGE\WKHVHVKLIWLQJFXOWXUDO
SDWWHUQVDQGWKHIDQWDVLVHGORVVRIFRQWUROLQFXUUHGLQYLVLWVWRWKHGHSDUWPHQWVWRUHVPHVKHG
LQFRPSOH[ZD\VGXULQJWKHHDUO\SDUWRIWKLVFHQWXU\ZLWKLQWHOOHFWXDODPELYDOHQFHDERXWPDVV
FXOWXUHDQGGLVGDLQIRUFRPPHUFH7KLVPRRGWKHFXOWXUDOIRUPDWLRQWKDW,KDYHLGHQWLILHG
KHUHLVGHHSO\LPSOLFDWHGLQWKHFRQVWUXFWLRQRIYLHZVDERXWFRQVXPSWLRQ,WKDVOHGWRWKH
UHSXGLDWLRQRIVKRSSLQJDQGVKRSSHUVDQGDGHQLDORIWKHWKHRUHWLFDOFHQWUDOLW\RIZRPHQWR
WKHPDNLQJRIPRGHUQLW\
1RWHV
7KLVDUWLFOHZDVRULJLQDOO\ZULWWHQIRUDERRNSURGXFHGE\PHPEHUVRIWKH'HSDUWPHQWRI&XOWXUDO6WXGLHVDW
WKH 8QLYHUVLW\ RI (DVW /RQGRQ HQWLWOHG 0RGHUQ 7LPHV 5HIOHFWLRQV RQ D &HQWXU\ RI (QJOLVK 0RGHUQLW\ HGV
0LFD 1DYD DQG $ODQ 2
6KHD DV WKH WLWOH LQGLFDWHV PRGHUQLW\ ZDV WKH RUJDQLVLQJ SULQFLSOH $ODQ
2
6KHD
V LQWURGXFWRU\ FKDSWHU (QJOLVK 6XEMHFWV RI 0RGHUQLW\
VHWV RXW WKH DUJXPHQW IRU WKH WKHRUHWLFDO
XVHIXOQHVV RI WKH FRQFHSW 0\ WKDQNV WR DOO WKH FRQWULEXWRUV WR WKDW ERRN IRU WKHLU KHOSIXO DQG FRPUDGHO\
FRPPHQWVRQHDUOLHUGUDIWVRIWKLVSLHFH7KHVWRU\VWDUWHGKHUHLVFRQWLQXHGLQ1DYD
0RGHUQLW\7DPHG"
:RPHQ6KRSSHUVDQGWKH5DWLRQDOLVDWLRQRI&RQVXPSWLRQLQWKH,QWHUZDU3HULRG
$PRQJ WKH DXWKRUV DQG WH[WV , KDYH GUDZQ RQ IRU WKH SXUSRVHV RI P\ DUJXPHQW DUH $QGHUVRQ %DXGHODLUH %HQMDPLQ DQG D %HUPDQ DQG %UDGEXU\DQG0F)DUODQH
%XFN0RUVV )ULVE\ /DVK DQG )ULHGPDQ 6HQQHWW 6LPPHO :LOOLDPV
:LOVRQDQG:ROIIDQG
7KH DUWLFOH ZDV ILUVW SXEOLVKHG $ VOLJKWO\ UHYLVHG YHUVLRQ DSSHDUV LQ :ROII -DQHW :ROII KDV
UHFHQWO\UHLWHUDWHGKHUVXSSRUWIRUKHULQLWLDODUJXPHQW
7KHUHSULQWHGYHUVLRQRIWKLVDUWLFOH:ROIILQFOXGHVDVOLJKWO\ORQJHUFRPPHQWRQWKLVVXEMHFWWKDQ
WKHRULJLQDO6HHDOVR:ROII
VHVVD\
)HPLQLVPDQG0RGHUQLVP
LQWKHVDPHERRN
7KLVLVGHVSLWHWKHIDFWWKDWVKHDOVRGUDZVRQWKHRULVWVZKRVHPDMRUFRQFHUQZDVZLWKWKHVRFLDO
WUDQVIRUPDWLRQVZKLFKWRRNSODFHODWHUDWWKHHQGRIWKHQLQHWHHQWKDQGEHJLQQLQJRIWKHWZHQWLHWKFHQWXULHV
IRUH[DPSOH7KRUVWHLQ9HEOHQDQG*HRUJ6LPPHOLQRUGHUWRVXSSRUWKHUDUJXPHQW
(OL]DEHWK :LOVRQ
V SKUDVH :LOVRQ LV PRUH VFHSWLFDO WKDQ :ROII )RU KHU WKH IODQHXU LV D
SRZHUOHVVDQGPDUJLQDOILJXUHDORLWHUHUYR\HXULQWKHXUEDQODE\ULQWK
+HU UHOLDQFH RQ 7KRUVWHLQ 9HEOHQ IRU WKH GHYHORSPHQW RI KHU FRPPHQWV RQ FRQVXPSWLRQ FRQILUPV WKLV
DSSURDFK)RUDFULWLTXHRI9HEOHQ
VDQDO\VLVVHH*UDQW0F&UDFNHQDQG$PDQGD9LFNHU\
6HH 'DYLGRII HW DO 0DUULRWW 1DYD 5RVH 6WHGPDQ -RQHV :DONRZLW]
:LOOLDPV:LOVRQ7ZHQWLHWKFHQWXU\%ULWLVKYHUVLRQVDUHDOVRPRUHSHVVLPLVWLFVHHIRU
H[DPSOH WKH GHEDWH EHWZHHQ %HUPDQ DQG $QGHUVRQ LQ 1HZ /HIW 5HYLHZ LQ DQG WKH LGHRORJ\ RI WKH
JDUGHQFLW\DQGVOXPFOHDUDQFHPRYHPHQWV:LOVRQ
(XURSHDQDQG$PHULFDQDFFRXQWVRIWKHFLW\DOWKRXJKRIWHQDPELYDOHQWDQGFRQFHUQHGDERXWWKHGHVWUXFWLRQ
RIWUDGLWLRQDOYDOXHVDQGPRGHVRIOLYLQJZHUHDOVROHVVIHDUIXODQGPRUHLQFOLQHGWRZHOFRPH HYHQFHOHEUDWH WKHULFKDQGFRPSOH[SKDQWDVPDJRULDRIWKHPRGHUQPHWURSROLWDQODQGVFDSH$V(OL]DEHWK:LOVRQKDVSRLQWHG
RXWLQ3DULVZKROHIDPLOLHVZHUHOLNHO\WRHQMR\WKHFDIHOLIHRQWKHEURDGQHZERXOHYDUGVZKLOHLQWKH
8QLWHG 6WDWHV WKH FLW\ FDPH LQFUHDVLQJO\ WR UHSUHVHQW D PRGHUQ DUFKLWHFWXUDO DQG VRFLDO LGHDO 6HH DOVR HJ
7KHRGRUH'UHLVHU
VQRYHO6LVWHU&DUULHILUVWSXEOLVKHGLQ
+X\VVHQ DOVR TXRWHV *XVWDYH /H %RQ &URZGV DUH HYHU\ZKHUH FKDUDFWHULVHG E\ IHPLQLQH
FKDUDFWHULVWLFV
-DQHW:ROIILVWKHRQHWRKDYHPDGHWKHOLQNWRPRGHUQLW\DQGLWLVUHSHDWHGLQVHYHUDORIKHUHVVD\VVHHIRU
H[DPSOH
7KH&XOWXUHRI6HSDUDWH6SKHUHV7KH5ROHRI&XOWXUHLQ1LQHWHHQWK&HQWXU\3XEOLFDQG3ULYDWH/LIH
2WKHU IHPLQLVW KLVWRULDQV KDYH DOVR H[SORUHG WKH VHSDUDWH VSKHUHV RI PHQ DQG ZRPHQ DW OHDVW DV DQ
LGHDOVHHIRUH[DPSOHWKHH[WHQVLYHDQGLPSRUWDQWFRQWULEXWLRQVRI/HRQRUH'DYLGRIIDQG&DWKHULQH+DOOZKR
VWUHVV WKH PDWHULDO LQWHUGHSHQGHQFH RI WKH SXEOLF
DQG WKH SULYDWH
GXULQJ WKH ILUVW KDOI RI WKH QLQHWHHQWK
FHQWXU\6HHDOVR-HQQ\5\DQIRU DQH[DPSOHRIDIHPLQLVWKLVWRULDQZKRVHHPSKDVLVLVSUHGRPLQDQWO\
RQ WKH FRQVWUDLQWV RI VHSDUDWH VSKHUHV DQG RQ WKH SDWULDUFKDO H[FOXVLRQ RI ZRPHQ IURP WKH SXEOLF GRPDLQ
/\QQH :DONHU :RPHQ DQG 9LFWRULDQ 3XEOLF 6SDFH
SDSHU JLYHQ DW 7KH &UDFNV LQ 7KH 3DYHPHQW
FRQIHUHQFHDWWKH'HVLJQ0XVHXP/RQGRQ:DONHUVKRZHGDVOLGHRIWZRZRPHQLQWKHVWUDYHOOLQJ
RQWKHXQGHUJURXQGZLWKWKHLUEULHIFDVHV$GEXUJKDPUHIHUVWRWKHF\FOLQJFUD]HDQGWKHQHZIDVKLRQV
WKDWZHUHUHTXLUHGIRULW
6HH HJ $EHOVRQ DQG /HDFK IRU WKH 8QLWHG 6WDWHV DQG $GEXUJKDP DQG :DONRZLW]
IRU (QJODQG SDUWLFXODUO\ /RQGRQ 6HH :DONRZLW] IRU D GLVFXVVLRQ RI PDOH SHVWV DQG
VH[XDOKDUDVVPHQW
6HHDOVR$GGDPV%DQNV1DYD:LOVRQ:DONRZLW]
6HH:LOVRQ
VGLVFXVVLRQRIWKHDUJXPHQWVPDGHE\:ROIIDQG3ROORFN:LOVRQ
6HH DOVR 'RQ]HORW ZKR GUDZV RQ )RXFDXOW DQG H[SORUHV WKH VKLIW LQ SKLODQWKURS\ IURP WKH JLIW RI
FKDULW\WRWKHUHQGHULQJRIDGYLFH
7KHTXRWHIURP=ROD
VQRWHVLVWDNHQIURP5RVV=ROD
VQRYHOZDVRULJLQDOO\SXEOLVKHGLQ
6FKXGVRQKDVVXJJHVWHGWKDWWKLVVKRXOGEHXQGHUVWRRGDVDGHPRFUDWLVDWLRQRIDVSLUDWLRQDQGHQY\
)RUWKHH[SDQVLRQRIFRQVXPHUFXOWXUHLQWRWKHPLGGOHFODVVHVVHHDOVR$EHOVRQDQG&KDQH\
$PRQJWKHILUVWSXEOLFWRLOHWVIRU
ODGLHV
ZHUHWKRVHSURYLGHGE\WKHGHSDUWPHQWVWRUHVREYLRXVO\DQDGGHG
LQFHQWLYH
,WLVJHQHUDOO\HVWLPDWHGWKDWRISXUFKDVLQJGHFLVLRQVWRGD\DUHPDGHE\ZRPHQDQGWKDWWKLVKDVEHHQ
WKHFDVHVLQFHWKHEHJLQQLQJRIWKHFHQWXU\DWOHDVWVHH3XPSKUH\DQG0DUFKDQG:RPHQZHUH
FHUWDLQO\ LGHQWLILHG ZLWK WKH LQWHUQDO GHFRU RI WKHLU KRPHV DQG ZHUH UHVSRQVLEOH IRU GHVLJQ DQG GRPHVWLF
VKRSSLQJGHFLVLRQVIURPWKHPLGQLQHWHHQWKFHQWXU\RQZDUGV)RUW\0HQVHHPQHYHUWRKDYHEHHQYHU\
FRPIRUWDEOH LQ GHSDUWPHQW VWRUHV H[FHSW DV VHOOHUV DQG HYHQ KHUH WKHLU LPSRUWDQFH GHFOLQHG IURP WKH ODWH
QLQHWHHQWKFHQWXU\RQZDUGV$GEXUJKDP/DQFDVWHU$EHOVRQFODLPVWKDWRIYLVLWRUVWR
WKHVWRUHVLQ$PHULFDGXULQJWKLVSHULRGZHUHZRPHQ
7KHUHZHUHRIFRXUVHUHJLRQDODQGKLVWRULFDOYDULDWLRQV1RWDOOZHUHDVJODPRURXVDVWKRVHGHVFULEHGKHUH
6RPH ZHUH PRGHUQLVHG ZKLOH RWKHUV ZHUH EXLOW IURP VFUDWFK 3URYLQFLDO DQG VXEXUEDQ VWRUHV ZHUH RULHQWHG
WRZDUGV D GLIIHUHQW FOLHQWHOH <HW DOO ZHUH GHVLJQHG WR EH DWWUDFWLYH DQG PDNH ZRPHQ IHHO ZHOFRPH 7KH
DFFRXQW,SUHVHQWKHUHLVDFRPSRVLWHEDVHGRQWKHUHVHDUFKRI$EHOVRQ$GEXUJKDPDQG
%RZOE\ &DOOHU\ &RYLQD 'DYLV +RQH\FRPEH /DQFDVWHU /HDFK
0LOOHU0RVVDQG7XUWRQ:LOOLDPV=ROD
7KH /DGLHV &OXE DW +DUURGV ZDV SDQHOOHG LQ %UHFFKL 6DQJXLQH 3DYDQQD]L DQG /HYDQWLQH PDUEOHV DQG
RQ\[DFFRUGLQJWR+DUURGVSXEOLFLW\PDWHULDORI&DOOHU\
2QH RI WKH SRVWHUV LQ 7KH 6SLULW RI 0RGHUQ &RPPHUFH
VHULHV SURGXFHG E\ 6HOIULGJH
V WR PDUN WKH ILIWK
DQQLYHUVDU\ RI LWV RSHQLQJZKLFKFHOHEUDWHV
WKH5RPDQFHWKDWOLHVLQ&RPPHUFH
KHOGLQWKHVWRUH
VDUFKLYH
7KLVSRVWHULVDOVRLQWHUHVWLQJIRULWVWH[WXQIRUWXQDWHO\QRWOHJLEOHLQWKLVUHSURGXFWLRQSDUWLFXODUO\LQUHODWLRQ
WRWKHDUJXPHQW,GHYHORSODWHULQWKLVSLHFHRIZRUN:ULWWHQE\*HUPDQLQGXVWULDOLVW+HUU5XGROSK+HUW]RJLW
LV D FRPPHQW RQ WKH LPSRUWDQW SODFH RI WKHPHUFKDQWLQWKHOLIHRIWKHSHRSOHERWKDWKRPHDQGDEURDGDQG
DWWHPSWVWRDQDO\VHWKHODFNRIUHJDUGZLWKZKLFK
SULQFHVRIFRPPHUFH
DUHYLHZHGFRPSDUHGWRODQGRZQHUV
HYHQE\WKHLURZQVRQV6HHQRWHIRUIXUWKHUGLVFXVVLRQRIWKLVDVSHFWRI+HUW]RJ
VFRPPHQWV
6HOIULGJHV DUFKLYH )LJ 6HOIULGJH
V DW KRPH
ZDV RQH RI D VHULHV RI IXOOSDJH DGYHUWLVHPHQWV ZKLFK
DSSHDUHGLQWKH/RQGRQGDLO\SDSHUVLQ0DUFKWRPDUNWKHRSHQLQJRIWKHVWRUH6HOIULGJHVDUFKLYH7KH
IXOOWH[WUHDGV
:HDUHDOZD\VUHDG\ZLWKDZHOFRPHWRVWUDQJHUVZLWKLQRXUJDWHV:HELGWKHPIHHODWKRPH
DQG HQGHDYRXU LQ HYHU\ ZD\ LPDJLQDEOH WR FUHDWH DQG FKHULVK WKDW FRPIRUWDEOH VHQWLPHQW
5HFHSWLRQ 5RRPV DUH RSHQ WR WKHP LQ ZKLFK WR PHHW WKHLU IULHQGV 1DPH 5HJLVWHUV LQ WKH
1DWLRQDO 5RRPV ZLOO HQDEOH WKHP WR UHFRUG WKHLU RZQ DGYHQW DQG WHOO WKHP RI KRPH
DFTXDLQWDQFHVZKRPD\DOVREHLQ /RQGRQ7KH/LEUDU\LVDYDLODEOHIRUFRUUHVSRQGHQFHDQG
WKH3RVW2IILFHIRUPDLOLQJLW7KH6LOHQW5RRPLVHORTXHQWRITXLHWXGH5HWLULQJ5RRPVDUH
PDQ\DQGSHUIHFWO\DSSRLQWHG,IRXUYLVLWRULVD*HQWOHPDQWKH6PRNH/RXQJHLVVXJJHVWLYH
RI D PHGLWDWLYHZHHG$QGWKHVHDFFRPPRGDWLRQVEHORQJWRYLVLWRUVZLWKRXWIHHRIDQ\NLQG
ZKDWHYHUDQGZLWKRXWWKHUHPRWHVWREOLJDWLRQLQWKHLUXVHWRPDNHDSXUFKDVH
7KH 3DUFHO DQG &ORDN 5RRP WDNHV FKDUJH RI DOO LPSHGLPHQWV 7KH %XUHDX GH &KDQJH ZLOO
QHJRWLDWH OHWWHUV RI FUHGLW 7KH ,QIRUPDWLRQ 2IILFH ZLOO DQVZHU DFFXUDWHO\ DQ\ UHDVRQDEOH
TXHVWLRQ 6HDWV DW DOO WKHDWUHV FDQ EH ERRNHG DQG 5DLOZD\ DQG 6WHDPVKLS WLFNHWV WDNHQ WR
DQ\ZKHUH ZLWKRXW JRLQJ RXWVLGH RXU GRRUV 7KH /XQFKHRQ +DOO DQG DO IUHVFR 7HD *DUGHQ
VHUYH DSSHWLVLQJ WHDV DQG OXQFKHRQV LQ GDLQW\ KRPHOLNH IDVKLRQ DW PRGHUDWH FKDUJHV DQG
IURP IORRU WR IORRU WKURXJK WKH KXQGUHG RU PRUH GHSDUWPHQWV DUH GLVSOD\V RI 0DQLIROG
0HUFKDQGLVH LQFRPSDUDEOH LQ ULFKQHVV XWLOLW\ DQG TXDOLW\ DW /RQGRQ
V /RZHVW 3ULFHV DOZD\V
7KH VWRUHV DOVR SURYLGHG VLJQLILFDQW FDUHHU DQG LQFRPH RSSRUWXQLWLHV IRU ZRPHQ 6HH /DQFDVWHU
/HDFK=ROD
2QHRI6HOIULGJH
VSURPRWLRQDODGYHUWLVHPHQWVIRULWVODXQFKLQ6HOIULGJHVDUFKLYH
6HHDOVR0LFD1DYDDQG5RVDOLQG0LQVN\IRUWKFRPLQJ
:RPHQDV5DWLRQDODQG,UUDWLRQDO6KRSSHUV
7KLV LV D FRQWHQWLRXV UHDGLQJ RI FRXUVH &XOWXUDO DQDO\VLV SDUWLFXODUO\ RI WKH OHIW KDV D ZHOO HVWDEOLVKHG
FRQYHQWLRQRIVHHLQJFRPPRGLW\FXOWXUHDVLUUHGHHPDEO\EDG5LFKDUGV
HORTXHQWFULWLTXHRIDGYHUWLVLQJDQGWKH
JURZWK RI PDVV FRQVXPSWLRQ LV DQ H[DPSOH RI WKLV 6HH DOVR WKH GLVFXVVLRQ LQ &RQVXPHULVP
5HFRQVLGHUHG%X\LQJDQG3RZHU
LQ1DYD
7KDQNVWR3HWHU+RUQHIRUDOHUWLQJPHWRWKLVSOD\
/DQFDVWHUFLWHV'DYLG1HYLOOH
V03KLO
:RPHQ
V6XIIUDJHRQ7\QHVLGH
8QLYHUVLW\RI1RUWKXPEULD
DVVRXUFHRILQIRUPDWLRQDERXW)HQZLFNVLQ1HZFDVWOH
6HH DOVR 1DYD FKDSWHUV DQG &RQVXPSWLRQ DV DQ DUHD RI WKHRUHWLFDO VWXG\ LV QRZ ILQDOO\
H[SDQGLQJ TXLWH UDSLGO\ $PRQJ VLJQLILFDQW FRQWULEXWLRQV WR WKH OLWHUDWXUH QRW FLWHG HOVHZKHUH LQ WKLV DUWLFOH
DUH&DUWHUDQG0RUULV0RUWDQG6KLHOGV
1DYDDQG0LQVN\
:RPHQDV6KRSSHUV
:LOVRQH[SORUHVWKHDVVRFLDWLRQVEHWZHHQWKHFLW\DQGVHGXFWLYHEXWWKUHDWHQLQJVH[XDOLWLHV
7KH6HHERKP5RZQWUHHVXUYH\UHSRUWHGWKDWRIFLQHPDJRHUVZHUH\RXQJSHRSOHDQGFKLOGUHQDQGRI
WKHUHPDLQLQJDGXOWVZHUHZRPHQ5LFKDUGV6XFKSUHFLVHLQIRUPDWLRQDERXWWKHHDUOLHUSHULRGLV
QRWDYDLODEOH
/DVFKPDNHVH[DFWO\WKHVDPHSRLQWDQGVLPLODUO\EHPRDQVWKHVHWUDQVIRUPDWLRQV
6HHDJDLQ0LQVN\
VVHFWLRQLQ1DYDDQG0LQVN\
:RPHQDV6KRSSHUV
+X\VVHQ
VDUWLFOHZDVRULJLQDOO\SXEOLVKHGLQ0RGOHVNLE)RUDFRPSOHPHQWDU\DQDO\VLVZKLFKORRNV
DWWKHIHPLQLVDWLRQRIPDVVFXOWXUHVHH0RGOHVNLD
0RGOHVNL PDNHV D VLPLODU SRLQW DERXW -HDQ %DXGULOODUG
V DPELYDOHQFH WRZDUGV WKHVH LVVXHV)RUKLPVKH
VD\V WKH PDVVHV IXQFWLRQ DV D D JLJDQWLFEODFN ZKROH D VLPLOH RVWHQVLEO\ WDNHQ IURP SK\VLFVEXWSHUKDSV
RZLQJVRPHWKLQJWRIHPLQLQHDQDWRP\DVZHOO
D
6HH DOVR %XFN0RUVV %UHZVWHU %HQMDPLQ 0F5REELH :LOVRQ
0LOOHU
6HH IRUH[DPSOH
7KH:RUNRI$UWLQWKH$JHRI0HFKDQLFDO5HSURGXFWLRQ
LQ%HQMDPLQ
6XVDQ%XFN0RUVVPDNHVYHU\OLWWOHUHIHUHQFHWRWKLVLQHLWKHURIKHUGLVFXVVLRQVRI3DVVDJHQ:HUN
RU %XW VHH IRU H[DPSOH %HQMDPLQ
V DXWRELRJUDSKLFDO $ %HUOLQ &KURQLFOH
%HQMDPLQ D 6HH DOVR
KLV 0RVFRZ 'LDU\E LQZKLFKKHFRQVWDQWO\UHLWHUDWHVKLVDPELYDOHQFHWRZDUGV$VMD/DFLVWKHZRPDQ
KHWUDYHOOHGWR0RVFRZWRVHH7KHWKHPHRIWKLVUHODWLRQVKLSDFFRUGLQJWR*DU\6PLWKLV
GUDZQDVDQHURWLF
UHGWKUHDGWKURXJKRXW%HQMDPLQ
VMRXUQDOLWLVRQHRIREVHVVLRQDQGGHQLDO
6HH%HUPDQDQG*DLQHVIRUIXUWKHUGLVFXVVLRQVRI%HQMDPLQ
VXQHDVH
6HH DOVR %XFN0RUVV 'HPHW] LQ KLV ELRJUDSKLFDO LQWURGXFWLRQ WR WKH FROOHFWLRQ RI %HQMDPLQ
V
HVVD\VDQG%HQMDPLQKLPVHOILQKLVDXWRELRJUDSKLFDOSLHFHVOLNH
$%HUOLQ&KURQLFOH
LQD
,QRUGHUWRSODFHP\VHOILQUHODWLRQWRWKLVQDUUDWLYHLWLVZRUWKDGGLQJWKDWP\IDWKHU0DUFHO
:HLVVHOEHUJDQGKLVEURWKHUDQGVLVWHUVERUQDWWKHEHJLQQLQJRIWKHFHQWXU\LQWRWKH9LHQQDWKDW.DUO
.UDXVGHVFULEHVDOVRHQJDJHGLQWKHVHGRPHVWLFLQWHUJHQHUDWLRQDO-HZLVKVWUXJJOHVDERXWWKHUHODWLYH
YDOXHRIFRPPHUFHDQGLQWHOOHFWXDOSROLWLFDOOLIH
,W LV DOVR LQWHUHVWLQJ LQ WKLV FRQWH[W WR UHIHU EDFN WR 5XGROSK +HUW]RJ
V FRPPHQWV RQ WKH 6HOIULGJH
VILIWK
DQQLYHUVDU\
6SLULWRI0RGHUQ&RPPHUFH
SRVWHUVHH1RWHDERYHDQGDQG)LJ0\RQO\LQIRUPDWLRQDERXW
+HUW]RJLVWKHUHLQWKHWH[WKHLVWKHKHDGRIRQHRIWKHJUHDWHVWEXVLQHVVHVLQWKH*HUPDQ(PSLUHDQGKHUHLQ
WKLV OHWWHU RI FRQJUDWXODWLRQV WR 6HOIULGJHV F KH UDWKHU SRLJQDQWO\ UHJUHWV WKDW WKH VRQV RI VXFFHVVIXO
PHUFKDQWV KDYH QR SULGH LQ FRPPHUFH DQG SUHIHU WR GHYRWH WKHPVHOYHV WR DFDGHPLF RU RIILFLDO FDUHHUV 7KH
PHUFKDQWLVKLPVHOIWREODPHLIKHGRHVQRWUHFHLYHWKHUHVSHFWKHGHVHUYHVEHFDXVHIUHTXHQWO\KHOHWVKLVVRQV
FKRRVH RWKHU FDUHHUV DQG JLYHV WKH LPSUHVVLRQ WKDW KH FRQVLGHUV RWKHU FDOOLQJV RI PRUH LPSRUWDQFH WKDQ KLV
RZQ
7KLVERRNLVRIFRXUVHDQLQVWDQFHRIKRZWKLVKDVQRZVWDUWHGWRFKDQJH
5HIHUHQFHV
$EHOVRQ(ODLQH:KHQ/DGLHV*R$7KLHYLQJ0LGGOH&ODVV6KRSOLIWHUVLQWKH9LFWRULDQ'HSDUWPHQW
6WRUH2[IRUG8QLYHUVLW\3UHVV
$GEXUJKDP$OLVRQ6KRSSLQJLQ6W\OH/RQGRQIURPWKH5HVWRUDWLRQWR(GZDUGLDQ(OHJDQFH/RQGRQ
7KDPHVDQG+XGVRQ
$GEXUJKDP$OLVRQ6KRSVDQG6KRSSLQJ/RQGRQ%DUULHDQG-HQNLQV
$GGDPV-DQH7KH6SLULWRI<RXWKDQGWKH&LW\6WUHHWV1HZ<RUN0DFPLOODQ
$GRUQR7KHRGRUHDQG+RUNKHLPHU0D['LDOHFWLFVRI(QOLJKWHQPHQW/RQGRQ$OOHQ/DQH
$QGHUVRQ3HUU\
0RGHUQLW\DQG5HYROXWLRQ
1HZ/HIW 5HYLHZ1R
$UHQGW+DQQDK
,QWURGXFWLRQ:DOWHU%HQMDPLQ
LQ:DOWHU%HQMDPLQ
V,OOXPLQDWLRQV
/RQGRQ)RQWDQD
%DXGHODLUH&KDUOHV7KH3DLQWHURI0RGHUQ/LIHDQG2WKHU(VVD\V2[IRUG3KDLGRQ
%DXPDQ=\JPXQW
,QGXVWULDOLVP&RQVXPHULVPDQG3RZHU
LQ7KHRU\&XOWXUHDQG6RFLHW\9RO
%HQMDPLQ:DOWHU
3DULV&DSLWDORIWKH1LQHWHHQWK&HQWXU\
LQ1HZ/HIW5HYLHZ1R
%HQMDPLQ:DOWHU,OOXPLQDWLRQV/RQGRQ)RQWDQD
%HQMDPLQ:DOWHUD5HIOHFWLRQV1HZ<RUN6FKRFNHQ%RRNV
%HQMDPLQ:DOWHUE0RVFRZ'LDU\+DUYDUG8QLYHUVLW\3UHVV
%HUPDQ0DUVKDOO$OO7KDW,V6ROLG0HOWVLQWR$LU7KH([SHULHQFHRI0RGHUQLW\/RQGRQ9HUVR
%HUPDQ0DUVKDOO
7KH6LJQVLQWKH6WUHHW$5HVSRQVHWR3HUU\$QGHUVRQ
1HZ/HIW5HYLHZ 1R
%RXUGLHX3LHUUH'LVWLQFWLRQ$6RFLDO&ULWLTXHRIWKH-XGJHPHQWRI7DVWH/RQGRQ5RXWOHGJH.HJDQ
3DXO
%RZOE\5DFKHO-XVW/RRNLQJ&RQVXPHU&XOWXUHLQ'UHLVHU*LVVLQJDQG=ROD/RQGRQ0HWKXHQ
%UDGEXU\0DOFROPDQG0F)DUODQH-DPHVHGV0RGHUQLVP+DUPRQGVZRUWK3HQJXLQ
%UDQGRQ5XWK7KH1HZ:RPDQDQGWKH2OG0HQ/RYH6H[DQGWKH:RPDQ4XHVWLRQ/RQGRQ
)ODPLQJR
%UHZDUG&KULVWRSKHU
)HPLQLQLW\DQG&RQVXPSWLRQ7KH3UREOHPRIWKH/DWH1LQHWHHQWK&HQWXU\
)DVKLRQ-RXUQDO
-RXUQDORI'HVLJQ+LVWRU\-XQH
%UHZVWHU%HQ
:DOWHU%HQMDPLQDQGWKH$UFDGHV3URMHFW
LQ1HZ/HIW5HYLHZ 1R
%XFL*OXFNVPDQQ&KULVWLQH
&DWDVWURSKLF8WRSLD7KH)HPLQLQHDV$OOHJRU\RIWKH0RGHUQ
LQ&
*DOODJKHUDQG7/DTXHXUHGV7KH0DNLQJRIWKH0RGHUQ%RG\ 8QLYHUVLW\RI&DOLIRUQLD3UHVV
%XFN0RUVV6XVDQ
%HQMDPLQ
V3DVVDJHQ:HUN5HGHHPLQJ0DVV&XOWXUHIRUWKH5HYROXWLRQ
LQ
1HZ*HUPDQ&ULWLTXH1R
%XFN0RUVV6XVDQ7KH'LDOHFWLFVRI6HHLQJ:DOWHU%HQMDPLQDQGWKH$UFDGHV3URMHFW3ODFH"
0,73UHVV
&DOOHU\6HDQ+DUURGV.QLJKWVEULGJH7KH6WRU\RI6RFLHW\
V)DYRXULWH6WRUH/RQGRQ(EXU\
3UHVV
&DPSEHOO&ROLQ7KH5RPDQWLF(WKLFDQGWKH6SLULWRI0RGHUQ&RQVXPHULVP2[IRUG%ODFNZHOO
&DPSEHOO&ROLQDQG)DON3DVLHGV6KRSSLQJ([SHULHQFH/RQGRQ6DJH
&DUWHU(ULFD
$OLFHLQ&RQVXPHU:RQGHUODQG
LQ$0F5REELHDQG01DYDHGV*HQGHUDQG
*HQHUDWLRQ/RQGRQ0DF0LOODQ
&DUWHU(ULFD+RZ*HUPDQLV6KH"1DWLRQDO5HFRQVWUXFWLRQDQGWKH&RQVXPLQJ:RPDQLQWKH
)5*DQG:HVW%HUOLQ8QLYHUVLW\RI0LFKLJDQ3UHVV
&KDQH\'DYLG
7KH'HSDUWPHQW6WRUHDV&XOWXUDO)RUP
7KHRU\&XOWXUHDQG6RFLHW\9RO
&RYLQD0DXULFH)LQH6LONVDQG2DN&RXQWHUV'HEHQKDPV/RQGRQ+XWFKLQVRQ
%HQKDP
'DYLGRII/HRQRUH7KH%HVW&LUFOHV
6RFLHW\
(WLTXHWWHDQGWKH6HDVRQ/RQGRQ&URRP+HOP
'DYLGRII/HRQRUH/
(VSHUDQFH-HDQDQG1HZE\+RZDUG
/DQGVFDSHZLWK)LJXUHV+RPHDQG
&RPPXQLW\LQ(QJOLVK6RFLHW\
LQ0LWFKHOODQG2DNOH\HGV7KH5LJKWVDQG:URQJVRI:RPHQ
+DUPRQGVZRUWK3HQJXLQ
'DYLGRII/HRQRUHDQG+DOO&DWKHULQH)DPLO\)RUWXQHV0HQDQG:RPHQRIWKH(QJOLVK0LGGOH
&ODVV/RQGRQ+XWFKLQVRQ
'DYLV'RURWK\$+LVWRU\RI6KRSSLQJ/RQGRQ5RXWOHGJH.HJDQ3DXO
'HPHW]3HWHU,QWURGXFWLRQWR:DOWHU%HQMDPLQ
V5HIOHFWLRQV1HZ<RUN6FKRFNHQ%RRNV
'RQ]HORW-DFTXHV7KH3ROLFLQJRI)DPLOLHV/RQGRQ+XWFKLQVRQ
'UHLVHU7KHRGRUH6LVWHU&DUULH+DUPRQGVZRUWK3HQJXLQ
(FNHUW&KDUOHV
7KH&DUROH/RPEDUGLQ0DF\
V:LQGRZ
LQ-*DLQHVDQG&+HU]RJHGV
)DEULFDWLRQV&RVWXPHDQGWKH)HPDOH%RG\/RQGRQ5RXWOHGJH
(ZHQ6WXDUW&DSWDLQVRI&RQVFLRXVQHVV$GYHUWLVLQJDQGWKH6RFLDO5RRWVRI&RQVXPHU6RFLHW\
1HZ<RUN0F*UDZ+LOO
(ZHQ6WXDUWDQG(ZHQ(OL]DEHWK&KDQQHOVRI'HVLUH0DVV,PDJHVDQGWKH6KDSLQJRI$PHULFDQ
&RQVFLRXVQHVV1HZ<RUN0F*UDZ+LOO
(ZHQ6WXDUW$OO&RQVXPLQJ,PDJHV1HZ<RUN%DVLF%RRNV
)DON3DVL
)RU<RXU(\HV2QO\"7KH6FRSLF5HJLPHVRI6KRSSLQJ
LQ&&DPSEHOODQG3)DON
HGV
)HDWKHUVWRQH0LNH
&RQVXPHU&XOWXUH
LQ7KHRU\&XOWXUHDQG6RFLHW\9RO
)RUW\$GULDQ2EMHFWVRI'HVLUH/RQGRQ7KDPHVDQG+XGVRQ
)RXFDXOW0LFKHO3RZHU.QRZOHGJH %ULJKWRQ+DUYHVWHU
)UHL1RUEHUW1DWLRQDO6RFLDOLVW5XOHLQ*HUPDQ\7KH)XKUHU6WDWH2[IRUG
%ODFNZHOO
)ULVE\'DYLG)UDJPHQWVRI0RGHUQLW\*HRUJ6LPPHO6LHJIULHG.UDFDXHUDQG:DOWHU%HQMDPLQ
/RQGRQ+HLQHPDQQ
)URPP%HOOD%ORRGDQG%DQTXHWV$%HUOLQ6RFLDO'LDU\/RQGRQ*HRIIUH\%OHV
*DLQHV-DQH
)DEULFDWLQJWKH)HPDOH%RG\
LQ-*DLQHVDQG&+HU]RJHGV)DEULFDWLRQV
/RQGRQ5RXWOHGJH
*UDPVFL$QWRQLR
$PHULFDQLVPDQG)RUGLVP
LQ3ULVRQ1RWHERRNV/RQGRQ/DZUHQFHDQG
:LVKDUW
*UDQYLOOH%DUNHU+DUOH\7KH0DGUDV+RXVH/RQGRQ(\UH0HWKXHQ
*UHHQKDOJK3DXO(SKHPHUDO9LVWDV7KH ([SRVLWLRQV8QLYHUVHOOHV*UHDW([KLELWLRQVDQG:RUOG
V
)DLUV0DQFKHVWHU8QLYHUVLW\3UHVV
*URVVPDQQ$WLQD
7KH1HZ:RPDQDQGWKH5DWLRQDOLVDWLRQRI6H[XDOLW\LQ:HLPDU*HUPDQ\
LQ
$6QLWRZHWDOHGV'HVLUH7KH3ROLWLFVRI6H[XDOLW\/RQGRQ9LUDJR
+DNH6DELQH
*LUOVLQ&ULVLV
LQ1HZ*HUPDQ&ULWLTXH 1R
+DQVHQ0LULDP
(DUO\6LOHQW&LQHPD:KRVH3XEOLF6SKHUH
LQ1HZ*HUPDQ&ULWLTXH 1R
+HOG'DYLG,QWURGXFWLRQWR&ULWLFDO7KHRU\/RQGRQ+XWFKLQVRQ
+ROOLV3DWULFLD:RPHQLQ3XEOLF7KH :RPHQ
V0RYHPHQW/RQGRQ*HRUJH$OOHQ
DQG8QZLQ
+RQH\FRPEH*RUGRQ6HOIULGJHV/RQGRQ3DUN/DQH3UHVV
+RUNKHLPHU0D[
$XWKRULW\DQGWKH)DPLO\
DQG
$UWDQG0DVV&XOWXUH
ERWKLQKLV&ULWLFDO
7KHRU\6HOHFWHG(VVD\V1HZ<RUN+HLGHUDQG+HLGHU
+RURZLW]'DQLHO7KH0RUDOLW\RI6SHQGLQJ$WWLWXGHVWRZDUGV&RQVXPHU6RFLHW\LQ$PHULFD
%DOWLPRUH-RKQ+RSNLQV8QLYHUVLW\3UHVV
+X\VVHQ$QGUHDV
0DVV&XOWXUHDV:RPDQ0RGHUQLVP
V2WKHU
LQKLV$IWHUWKH *UHDW'LYLGH
/RQGRQ0DFPLOODQ
-D\0DUWLQ$GRUQR/RQGRQ)RQWDQD
-D\0DUWLQ
6FRSLF5HJLPHVRI0RGHUQLW\
LQ6/DVKDQG-)ULHGPDQHGV0RGHUQLW\DQG
,GHQWLW\2[IRUG%ODFNZHOO
.RKQ0DUHN'RSH*LUOV7KH%LUWKRIWKH%ULWLVK'UXJ8QGHUJURXQG/RQGRQ/DZUHQFHDQG
:LVKDUW
.UDFDXHU6LHJIULHG
7KH&XOWRI'LVWUDFWLRQ2Q%HUOLQ
V3LFWXUH3DODFHV
LQ1HZ*HUPDQ&ULWLTXH
1R
.XKQ$QQHWWH&LQHPD&HQVRUVKLSDQG6H[XDOLW\/RQGRQ5RXWOHGJH
/DQFDVWHU:LOOLDP7KH'HSDUWPHQW6WRUH$6RFLDO+LVWRU\/RQGRQ3LQWHU
/DVFK&KULVWRSKHU7KH&XOWXUHRI1DUFLVVLVP1HZ<RUN1RUWRQ
/DVK6FRWWDQG)ULHGPDQ-RQDWKDQHGV0RGHUQLW\DQG,GHQWLW\2[IRUG%ODFNZHOO
/HDFK:LOOLDP
7UDQVIRUPDWLRQVLQD&XOWXUHRI&RQVXPSWLRQ:RPHQDQG'HSDUWPHQW6WRUHV
7KH-RXUQDORI$PHULFDQ+LVWRU\9RO
0DUFKDQG5RODQG$GYHUWLVLQJWKH$PHULFDQ'UHDP0DNLQJ:D\IRU0RGHUQLW\
8QLYHUVLW\RI&DOLIRUQLD3UHVV
0DUULRWW-RKQ
6HQVDWLRQRIWKH$E\VV7KH8UEDQ3RRUDQG0RGHUQLW\
LQ1DYDDQG2
6KHDHGV
0RGHUQ7LPHV5HIOHFWLRQVRQD&HQWXU\RI(QJOLVK0RGHUQLW\/RQGRQ5RXWOHGJH
0DVW*HUDOG7KH0RYLHVLQRXU0LGVW'RFXPHQWVLQWKH &XOWXUDO+LVWRU\RI)LOPLQ$PHULFD
8QLYHUVLW\RI&KLFDJR3UHVV
0F&UDFNHQ*UDQW&XOWXUHDQG&RQVXPSWLRQ,QGLDQD8QLYHUVLW\3UHVV
0F.HQGULFN-RKQ%UHZHUDQG-+3OXPE7KH%LUWKRID&RQVXPHU6RFLHW\7KH
&RPPHUFLDOLVDWLRQRI(LJKWHHQWK&HQWXU\(QJODQG/RQGRQ(XURSD
0F5REELH$QJHOD
7KH 3DVVDJHQZHUNDQGWKH3ODFHRI:DOWHU%HQMDPLQLQ&XOWXUDO6WXGLHV
LQ
&XOWXUDO6WXGLHV9RO
0HOPDQ%LOOLH:RPHQDQGWKH3RSXODU,PDJLQDWLRQLQWKH7ZHQWLHV/RQGRQ0DFPLOODQ
0LOOHU'DQLHO
&RXOG6KRSSLQJ(YHU5HDOO\0DWWHU"
LQ&&DPSEHOODQG3)DONHGV6KRSSLQJ
([SHULHQFH/RQGRQ6DJH
0LOOHU0LFKDHO7KH%RQ0DUFKH%RXUJHRLV&XOWXUHDQGWKH'HSDUWPHQW6WRUH
/RQGRQ$OOHQDQG8QZLQ
0LWFKHOO-XOLHWDQG2DNOH\$QQHHGV7KH5LJKWVDQG:URQJVRI:RPHQ+DUPRQGVZRUWK
3HQJXLQ
0RGOHVNL7DQLDD
)HPLQLQLW\DV0DVVTXHUDGHD)HPLQLVW$SSURDFKWR0DVV&XOWXUH
LQ&
0F&DEHHG+LJK7KHRU\/RZ&XOWXUH0DQFKHVWHU8QLYHUVLW\3UHVVUHSULQWHGLQ0RGOHVNL
0RGOHVNL7DQLDHGE6WXGLHVLQ(QWHUWDLQPHQW&ULWLFDO$SSURDFKHVWR0DVV&XOWXUH,QGLDQD
8QLYHUVLW\3UHVV
0RUULV0HDJKDQ
7KLQJVWRGRZLWK6KRSSLQJ&HQWUHV
LQ66KHULGDQHG*UDIWV/RQGRQ9HUVR
0RUW)UDQN
%R\V2ZQ"0DVFXOLQLW\6W\OHDQG3RSXODU&XOWXUH
LQ5&KDSPDQDQG-
5XWKHUIRUGHGV0DOH2UGHU8QZUDSSLQJ0DVFXOLQLW\/RQGRQ/DZUHQFHDQG:LVKDUW
0RVV0LFKDHODQG7XUWRQ$OLVRQ$/HJHQGRI5HWDLOLQJ+RXVHRI)UDVHU/RQGRQ:HLGHQIHOG
DQG1LFKROVRQ
1DYD0LFD
7KH8UEDQWKH'RPHVWLFDQG(GXFDWLRQIRU*LUOV
LQ**UDFHHG(GXFDWLRQDQG
WKH&LW\/RQGRQ5RXWOHGJH.HJDQ3DXOUHSULQWHGLQ1DYD
1DYD0LFD&KDQJLQJ&XOWXUHV)HPLQLVP<RXWKDQG&RQVXPHULVP/RQGRQ6DJH
1DYD0LFD
0RGHUQLW\7DPHG":RPHQ6KRSSHUVDQGWKH5DWLRQDOLVDWLRQRI&RQVXPSWLRQLQWKH
,QWHUZDU3HULRG
$XVWUDOLDQ-RXUQDORI&RPPXQLFDWLRQ9RO
1DYD0LFDDQG2
6KHD$ODQHGV0RGHUQ7LPHV5HIOHFWLRQVRQD&HQWXU\RI(QJOLVK
0RGHUQLW\ /RQGRQ5RXWOHGJH
1L[RQ6HDQ
+DYH<RX*RWWKH/RRN"0DVFXOLQLWLHVDQG6KRSSLQJ6SHFWDFOH
LQ56KLHOGVHG
/LIH6W\OH6KRSSLQJ7KH6XEMHFWRI&RQVXPSWLRQ/RQGRQ5RXWOHGJH
2
6KHD$ODQ
(QJOLVK6XEMHFWVRI0RGHUQLW\
LQ01DYDDQG$2
6KHDHGV0RGHUQ7LPHV
5HIOHFWLRQVRQD&HQWXU\RI(QJOLVK0RGHUQLW\/RQGRQ5RXWOHGJH
3HWUR3DWULFH
0RGHUQLW\DQG0DVV&XOWXUHLQ:HLPDU
LQ1HZ*HUPDQ&ULWLTXH 1R
3ROORFN*ULVHOGD9LVLRQDQG'LIIHUHQFH/RQGRQ5RXWOHGJH
3RVWHU0DUN&ULWLFDO7KHRU\RIWKH)DPLO\/RQGRQ3OXWR3UHVV
3XPSKUH\0DUWLQ
7KH)ODSSHUWKH+RXVHZLIHDQGWKH0DNLQJRI0RGHUQLW\
LQ&XOWXUDO6WXGLHV
9RO
5LFKDUGV-HIIUH\7KH$JHRIWKH'UHDP3DODFH&LQHPDDQG6RFLHW\LQ%ULWDLQ
/RQGRQ5RXWOHGJH
5LFKDUGV7KRPDV7KH&RPPRGLW\&XOWXUHRI9LFWRULDQ(QJODQG$GYHUWLVLQJDQG6SHFWDFOH
/RQGRQ9HUVR
5RELQV(OL]DEHWK7KH&RQYHUW/RQGRQ7KH:RPHQ
V3UHVV
5RVH1LNRODV
7KH3V\FKRORJLFDO&RPSOH[0HQWDO0HDVXUHPHQWDQG6RFLDO$GPLQLVWUDWLRQ
LQ
,GHRORJ\DQG&RQVFLRXVQHVV1R
5RVV.LUVWLQ,QWURGXFWLRQWR(PLOH=ROD/DGLHV
3DUDGLVH8QLYHUVLW\RI&DOLIRUQLD3UHVV
5\DQ-HQQ\:RPHQ0RGHUQLW\DQGWKH&LW\:RUNLQJ3DSHUVLQ3RSXODU&XOWXUDO6WXGLHV1R
0DQFKHVWHU,QVWLWXWHIRU3RSXODU&XOWXUH
6DFNYLOOH:HVW9LWD7KH(GZDUGLDQV/RQGRQ9LUDJR
6FKXGVRQ0LFKDHO$GYHUWLVLQJWKH8QHDV\3HUVXDVLRQ1HZ<RUN%DVLF%RRNV
6FKZDU]%LOO
5DWLRQDOLVP,UUDWLRQDOLVPDQG7D\ORULVP
LQ6FLHQFHDQG&XOWXUH 1R
6HQQHWW5LFKDUG7KH)DOORI3XEOLF0DQ/RQGRQ)DEHUDQG)DEHU
6KLHOGV5REHG/LIH6W\OH6KRSSLQJ7KH6XEMHFWRI&RQVXPSWLRQ/RQGRQ5RXWOHGJH
6KRZDOWHU(ODLQH6H[XDO$QDUFK\*HQGHUDQG&XOWXUHDWWKH)LQGH6LHFOH/RQGRQ9LUDJR
6LPPHO*HRUJ
7KH0HWURSROLVDQG0HQWDO/LIH
LQ2Q,QGLYLGXDOLW\DQG6RFLDO)RUPV
8QLYHUVLW\RI&KLFDJR3UHVV
6PLWK*DU\$IWHUZRUGWR:DOWHU%HQMDPLQ
V0RVFRZ'LDU\+DUYDUG8QLYHUVLW\3UHVV
6WUDFKH\5D\7KH&DXVH/RQGRQ9LUDJR
6WHGPDQ-RQHV*DUHWK2XWFDVW/RQGRQ+DUPRQGVZRUWK3HQJXLQ
6WHLQ6DOO\
7KH*UDSKLF2UGHULQJRI 'HVLUH0RGHUQLVDWLRQRID0LGGOH&ODVV:RPHQ
V
0DJD]LQH
+HUHVLHV1R
7KHZHOHLW.ODXV0DOH)DQWDVLHV&DPEULGJH3ROLW\
7KRQQHVVHQ:HUQHU7KH(PDQFLSDWLRQRI:RPHQ*HUPDQ\/RQGRQ3OXWR3UHVV
7LFNQHU/LVD7KH6SHFWDFOHRI:RPHQ,PDJHU\RIWKH6XIIUDJH&DPSDLJQ/RQGRQ
&KDWWRDQG:LQGXV
7ULPEHUJHU(OOHQ
)HPLQLVP0HQDQG0RGHUQ/RYH*UHHQZLFK9LOODJH
LQ$
6QLWRZHWDOHGV'HVLUH7KH3ROLWLFVRI6H[XDOLW\/RQGRQ9LUDJR
9DOYHUGH0DULDQD
7KH/RYHRI)LQHU\)DVKLRQDQGWKH)DOOHQ:RPDQLQWK&HQWXU\6RFLDO
'LVFRXUVH
LQ9LFWRULDQ6WXGLHV:LQWHU
YDQ9XFKW7LMVVHQ/LHWHNH
:RPHQDQG2EMHFWLYH&XOWXUH*HRUJ6LPPHODQG0DULDQQH:HEHU
7KHRU\&XOWXUHDQG6RFLHW\9RO
9HEOHQ7KRUVWHLQ7KHRU\RIWKH/HLVXUH&ODVV+DUPRQGVZRUWK3HQJXLQ
9LFNHU\$PDQGD
:RPHQDQGWKH:RUOGRI*RRGV$/DQFDVKLUH&RQVXPHUDQGKHU3RVVHVVLRQV
LQ-%UHZHUDQG53RUWHUHGV&RQVXPSWLRQDQGWKH:RUOGRI*RRGV/RQGRQ5RXWOHGJH
9LFNHU\$PDQGD
6KDNLQJWKH6HSDUDWH6SKHUHV
7LPHV/LWHUDU\6XSSOHPHQW0DUFKWK
YRQ5H]]RUL*UHJRU0HPRLUVRIDQ$QWL6HPLWH$1RYHOLQ)LYH6WRULHV/RQGRQ3DQ%RRNV
:DONRZLW]-XGLWK3URVWLWXWLRQDQG9LFWRULDQ6RFLHW\&DPEULGJH8QLYHUVLW\3UHVV
:DONRZLW]-XGLWK&LW\RI'UHDGIXO'HOLJKW/RQGRQ9LUDJR
:DUG.HQ0DVV&RPPXQLFDWLRQDQGWKH0RGHUQ:RUOG/RQGRQ0DFPLOODQ
:HHNV-HIIUH\6H[3ROLWLFVDQG6RFLHW\/RQGRQ/RQJPDQ
:LOOLDPV5D\PRQG&RXQWU\DQG&LW\+DUPRQGVZRUWK3HQJXLQ
:LOOLDPV5D\PRQG7KH3ROLWLFVRI0RGHUQLVP/RQGRQ9HUVR
:LOOLDPV5RVDOLQG'UHDP:RUOGV0DVV&RQVXPSWLRQLQ/DWH1LQHWHHQWK&HQWXU\)UDQFH
8QLYHUVLW\RI&DOLIRUQLD3UHVV
:LOVRQ(OL]DEHWK:RPHQDQGWKH:HOIDUH6WDWH/RQGRQ7DYLVWRFN
:LOVRQ(OL]DEHWK6SKLQ[LQWKH&LW\/RQGRQ9LUDJR
:LOVRQ(OL]DEHWK
7KH,QYLVLEOH)ODQHXU
1HZ/HIW5HYLHZ 1R
:ROII-DQHW
7KH,QYLVLEOH)ODQHXVH:RPHQLQWKH/LWHUDWXUHRI0RGHUQLW\
7KHRU\&XOWXUHDQG
6RFLHW\ 9RO
:ROII-DQHW)HPLQLQH6HQWHQFHV(VVD\VRQ:RPHQDQG&XOWXUH&DPEULGJH3ROLW\
:ROII-DQHW
0HPRLUVDQG0LFURORJLHV:DOWHU%HQMDPLQ)HPLQLVPDQG&XOWXUDO$QDO\VLV
LQ
1HZ)RUPDWLRQV1R
:ROOHQ3HWHU
0RGHUQ7LPHV&LQHPD$PHULFDQLVP7KH5RERW
LQ5DLGLQJWKH,FHER[
5HIOHFWLRQVRQ7ZHQWLHWK&HQWXU\&XOWXUH/RQGRQ9HUVR
=ROD(PLOH7KH/DGLHV
3DUDGLVH 8QLYHUVLW\RI&DOLIRUQLD3UHVV
=XNLQ6KDURQ
7KH3RVWPRGHUQ'HEDWHRYHU8UEDQ)RUP
LQ7KHRU\&XOWXUHDQG6RFLHW\ 9RO
© Copyright 2026 Paperzz