+RPH
$UWV
:RUOG
0DJD]LQH
&RPSDQLHV
)RRG'ULQN
0DUNHWV
+RXVH+RPH
*OREDO(FRQRP\
/XQFKZLWK)7
6W\OH
%RRNV
/H[
3XUVXLWV
&RPPHQW
7UDYHO
&ROXPQLVWV
0DQDJHPHQW
/LIH$UWV
+RZ7R6SHQG,W
7RROV
-XO\SP
7KHJURZLQJFXOWXUHRIOLYLQJIXUQLWXUHIURPPXVKURRPVWRPRVV
%\1DWKDQ%URRNHU
*UHHQGHVLJQHUVDUHXVLQJIXQJXVµOLTXLGZRRG¶DQGRWKHUELRGHJUDGDEOHPDWHULDOVWRFUHDWHORZ
LPSDFWSURGXFWV
:
LWKWKHJURZLQJDSSHWLWHIRUJUHHQDQGUHF\FODEOHIXUQLWXUHPDQ\GHVLJQHUVDUHFRPLQJXSZLWKLQQRYDWLYHZD\VWRXVHOLYLQJ
PDWHULDOV±PDWHULDOVZKLFKW\SLFDOO\KDYHDVPDOOFDUERQIRRWSULQWDQGDUHELRGHJUDGDEOHWKHXOWLPDWHDFFRODGHLQORZ
LPSDFWGHVLJQ$QH[KLELWLRQVKRZFDVLQJVXFKIXUQLWXUHDWWKH:RUNVKRS5HVLGHQFHLQ6DQ)UDQFLVFRODVW\HDUWXUQHGDIHZKHDGVQRW
WRPHQWLRQWKHRGGVWRPDFK
'HVLJQHUV0DUMDQYDQ$XEHODQG-DPHV6KDZZRUNLQJRQWKHLU:HOO3URYHQFKDLU
7KH:HOO3URYHQFKDLULVPRXOGHGIURPDIRDP\SRUULGJHOLNHVXEVWDQFHWKH
EHWZHHQZDVWHGZRRGVKDYLQJVDQGDELRUHVLQ…
³,W¶VWUDGLWLRQDOIXUQLWXUHLW¶VMXVWPDGHRXWRIIXQJXV´VD\V3KLO5RVVDQDUWLVWDQGP\FRORJLVWEDVHGLQ6DQ)UDQFLVFR+HKDVEHHQ
ZRUNLQJZLWKIXQJXVIRUPRUHWKDQ\HDUVEXWLQMRLQHGXSZLWKORFDOFDUSHQWHUVWRPDNH±RUUDWKHU³JURZ´±DQLQLWLDOUXQ
RIVL[PRGHOVRIIXUQLWXUHRXWRIVSHFLDOO\HQJLQHHUHGOLQJ]KLDW\SHRIVKHOIPXVKURRPDQGZRRGVDOYDJH
³7KHVHWKLQJVJURZH[SRQHQWLDOO\´VD\V5RVV³VR\RXVWDUWRIIZLWKDVDPSOHWKHVL]HRIDILQJHUQDLOFOLSSLQJDQGZLWKLQDZHHNLW¶V
ILOOLQJXSDOLWUHMDUDZHHNODWHULW¶VILOOLQJXSDOLWUHMDU´2QFH\RXKDYHWKHIXQJDOFXOWXUHUHDG\KHDGGVLWWDNHVDERXWGD\V
WRJURZDFKDLU
7KHSURFHVVVRXQGVPRUHOLNHVFLHQFHILFWLRQ5RVVVWDUWVE\H[WUDFWLQJDVPDOOSLHFHRIOLYLQJWLVVXHIURPDPXVKURRPZKLFKKH
H[SDQGVE\JURZLQJRQDYDULHW\RIGLIIHUHQWPHGLXPVPDGHRIVHDZHHGEDVHGJHODWLQXQWLOLWLVELJHQRXJKIRUVROLGIRRG³7KH
PXVKURRPV,ZRUNZLWKKDYHDSUHWW\YDULHGGLHW´KHVD\V³WKH\HDWDQ\WKLQJIURPFRUQFREVWRSHDQXWVKHOOVWRQHZVSDSHUSXOS´
2QFHKHKDVWKHVKDSHKHZDQWVWKHJURZLQJSURFHVVLVKDOWHG
7RGDWH5RVVKDVVROGDERXWSLHFHVRIIXUQLWXUHDYDLODEOHWKURXJKWKH:RUNVKRS5HVLGHQFHDQGSULFHGEHWZHHQIRUDVWRRO
DQGIRUDQDUPFKDLU5RVVLVDZDUHKLVPXVKURRPIXUQLWXUHZLOOQRWQHFHVVDULO\DSSHDOWRHYHU\RQH³6RIDUZH¶YHRQO\VROGWR
SHRSOHZKRORYHWKHPDQGORYHWKHLGHDRIKDYLQJDIXQJXVFKDLULQWKHLUKRXVHEXWWKHVHGHVLJQVFDQEHILQLVKHGRUFRYHUHGLQDQ\
ZD\\RXZDQWWKLVLVRQO\WKHHDUO\VWDJHV´
7KHWUHQGLVQRWOLPLWHGWRWKH86'XWFK6WXGLR'URRJKHOGWZRVKRZVODVW\HDULQ0LODQDQG(LQGKRYHQFDOOHG0DWHULDO0DWWHUV
ZKLFKVKRZFDVHGGHVLJQHUVZKRZRUNLQLQQRYDWLYHZD\V2QHVXFKGHVLJQHUZDV/RQGRQEDVHG6X]DQQH/HHZKRPDNHVFORWKHVDQG
IDEULFVJURZQIURPDV\PELRWLFFXOWXUHRI\HDVWDQGEDFWHULDIHGLQDYDWRIVXJDU\JUHHQWHD
:KLOH/HHDQG5RVVZRUNE\HQJLQHHULQJOLYLQJPDWHULDOVRWKHUVDUHILQGLQJQHZZD\VWRFKDQJH
WKHOLPLWDWLRQVRIWUDGLWLRQDOO\KDUYHVWHGELRPDWHULDOVOLNHZRRGDQGKHPS
2QHWHFKQRORJ\WKDWKDVFRPHWKURXJKWKHGHYHORSPHQWVWDJHDQGLVEHLQJXVHGLQDYDULHW\RI
DSSOLFDWLRQVLVNQRZQDV³OLTXLGZRRG´3DWHQWHGE\*HUPDQFRPSDQ\7HFQDUROLTXLGZRRGRU
$UERIRUP±WRJLYHLWLWVSURSHUQDPH±LVSULQFLSDOO\PDGHIURPOLJQLQDZRRGH[WUDFWZKLFK
FDQEHPHOWHGGRZQDQGLQMHFWLRQPRXOGHGLQWRDQ\QXPEHURIVKDSHVVLPLODUWRSODVWLF2QHRI
WKHILUVWGHVLJQSURGXFWVSXWLQWRSURGXFWLRQXVLQJWKHSURGXFWLVWKH*UHHQ/DQWHUQDKRUQ
VKDSHGODPSWKDWLVDOVRDSODQWHUGHVLJQHGE\5RPROR6WDQFRZKLFKUHWDLOVIRU¼
,WDOLDQGHVLJQKRXVH&DOOLJDULVXVHGDVLPLODUWHFKQRORJ\LQWKHODXQFKRILWVVWDFNDEOH6NLQFKDLU
ODVW$SULO³7KHFKDLULVPDGHIURPDPL[RIQDWXUDOILEUHVDQGSRO\SURS\OHQHZKLFKPDNHVLW
UHF\FODEOH´VD\V0DVVLPR&LDQKHDGRIGHVLJQDW&DOOLJDULV
)LYH)LQJHU<DPDQDNDIXQJXVFKDLU
ZZZWKHZRUNVKRSUHVLGHQFHFRP
7KHFKDLU±ZKLFKVHOOVIRU…±KDVEHHQZHOOUHFHLYHGE\FULWLFVDQGFRQVXPHUVDOLNHDQG
&LDQKRSHVLWZLOOVRRQEHFRPHWKHFRPSDQ\¶VEHVWVHOOLQJGHVLJQ7KRXJKWKH6NLQFKDLULV
XQGRXEWHGO\DQHOHJDQWH[DPSOHRIPRGHUQ,WDOLDQIXUQLWXUHIRU&LDQLWLVWKHHFRORJLFDOEHQHILWV
WKDWUHDOO\GULYHWKHWUHQGIRUQHZELRPDWHULDOV
³3URGXFWVQHHGWREHGHVLJQHGZLWKWKHLUOLIHF\FOHLQPLQG´KHVD\V³WDNLQJLQWRDFFRXQWPDWHULDOVDQGWKHUHVRXUFHVZKLFKZLOOEH
XVHGDQGZKDWZLOOKDSSHQWRWKHPDWWKHHQGRIWKHLUMRXUQH\´
$VLPLODUHWKRVGURYHGHVLJQHUV0DUMDQYDQ$XEHODQG-DPHV6KDZWRWHDPXSDQGXWLOLVHWKHHVWLPDWHGWRSHUFHQWRIPDWHULDO
ZDVWDJHWKDWRFFXUVGXULQJWUDGLWLRQDOZRRGHQIXUQLWXUHPDQXIDFWXULQJ7KHLU:HOO3URYHQFKDLULVPRXOGHGIURPDIRDP\SRUULGJH
OLNHVXEVWDQFHWKHUHVXOWRIDFKHPLFDOUHDFWLRQEHWZHHQZDVWHGZRRGVKDYLQJVDQGDELRUHVLQ
7KHGHVLJQZKLFKLVILQLVKHGZLWKWXUQHG$PHULFDQDVKOHJVDQGFDQEHG\HGDYDULHW\RIFRORXUVZDVDQRPLQHHIRUWKH/RQGRQ
'HVLJQ0XVHXP¶V'HVLJQVRIWKH<HDUDZDUGQDUURZO\PLVVLQJRXWLQ$SULOWRWKH0HGLFLFKDLUE\.RQVWDQWLQ*UFLF
2QHDVSHFWRIWKHELRPDWHULDOUHYROXWLRQLVWKHSRWHQWLDOWRJHQHUDWHHOHFWULFLW\6FLHQWLVWVIURP
WKH8QLYHUVLW\RI&DPEULGJHZKRKDYHEHHQVWXG\LQJELRSKRWRYROWDLFV\VWHPVLQSODQWVKDYH
WHDPHGXSZLWKGHVLJQHUVWRSURGXFHIXUQLWXUHZLWKXVDEOHHOHFWULFDOFXUUHQW7KH0RVVWDEOH
GHVLJQHGE\$OH['ULYHU&DUORV3HUDOWDDQG3DROR%RPEHOOLKDVDWWUDFWHGFRQVLGHUDEOH
DWWHQWLRQVLQFHLWZRQWKH3HRSOH¶V&KRLFH'HVLJQDZDUGDWODVW\HDU¶V'HVLJQ,FRQVH[KLELWLRQLQ
&DPEULGJH
0RVVWDEOHSURWRW\SH
ELRSKRWRYROWDLFVZRUGSUHVVFRP
³7KHWDEOHXVHVRQHRIWKHE\SURGXFWVRISKRWRV\QWKHVLVHOHFWURQV±RUQHJDWLYHO\FKDUJHG
SDUWLFOHV±DQGE\SODFLQJDFRQGXFWLYHPDWHULDOQHDUWKHSODQWVZKHQWKLVLVKDSSHQLQJZHFDQ
VLSKRQRIIVRPHRIWKRVHHOHFWURQVDQGXVHWKHP´VD\V'ULYHUZKRQRZZRUNVIRU/RQGRQ
GHVLJQILUP1DWLYH
7KH0RVVWDEOHORRNVLPSUHVVLYHEXWWKHSLFWXUHVDUHDELWPLVOHDGLQJ³7KHFXUUHQWSURGXFHGFDQ¶WSRZHUWKHODPS\HWEXWLWFDQ
SRZHUDGLJLWDOFORFNDQGZLWKIXUWKHUUHVHDUFKFRXOGJRRQWRZRUNDOLJKWRUHYHQORZHQHUJ\ODSWRSVZKLFKDUHFXUUHQWO\EHLQJ
GHYHORSHG´VD\V'ULYHU
7KRXJKDORWRIWKHVHQHZPDWHULDOVDQGSURFHVVHVDUHVWLOOLQWKHUHVHDUFKVWDJHELRHQJLQHHUHGDQGELRGHJUDGDEOHIXUQLWXUHLVVWLOO
YHU\PXFKDPDUNHWRQWKHULVH³,IWKHWUHQGIRUJUHHQGHVLJQFRQWLQXHV´VD\V5RVV³WKHIXWXUHLVJRLQJWREHYHU\EULJKWLQGHHG
EHFDXVHWKHDSSOLFDWLRQVDUHMXVWJRLQJWRLQFUHDVH´$OUHDG\ZRUNLQJRQDIXQJDOEXLOGLQJEORFNVHWOLNH/HJR5RVVVHHV
ELRHQJLQHHUHGSURGXFWVEHLQJXVHGLQRWKHUDUHDVWRR³,WFDQEHXVHGLQFKLOGUHQ¶VWR\VIXUQLWXUHDUFKLWHFWXUHFORWKLQJLQIDFW
SUDFWLFDOO\HYHU\ZKHUHZKHUHZHFXUUHQWO\XVHSODVWLFVZHFDQXVHWKLVVWXII´KHVD\V
3ULQWHGIURPKWWSZZZIWFRPFPVVDFHHHEIHDEGFKWPO
3ULQWDVLQJOHFRS\RIWKLVDUWLFOHIRUSHUVRQDOXVH&RQWDFWXVLI\RXZLVKWRSULQWPRUHWRGLVWULEXWHWRRWKHUV