Tabbloid Total

-XQH
7RGD\·V7DEEORLG
3(5621$/1(:6)25FROOHJHJHWDZD\V#DROFRP
'$01,:,6+,¶'7+28*+72)7+$7 7+(60$573$66,9(,1&20(%/2*
-XVWH[SODLQLWDQG,ZRQ¶WEHVR :KDW3;&DQ7HDFK8V
DQJU\ $ERXW%HFRPLQJD6XFFHVVIXO
-81$0
(QWUHSUHQHXU
:LWKWKHXVXDO76$UDQGRPQHVVVHFXULW\DW2¶+DUHVWDUWHGWHOOLQJ -81$0
SHRSOHQRWWRSXWWKHLUVKRHVLQWKHELQV7KH\ZDQWWKHPULJKWRQWKH
EHOW
:KLFKLVRIFRXUVHGLIIHUHQWWKDQHYHU\RWKHUFLW\
6RHYHU\WUDYHOHUGRHVLWZURQJDQGHYHU\WUDYHOHUJHWV\HOOHGDW
%XWRQHVQRZ\GD\WKH76$DJHQWVDLG³3OHDVHSXW\RXUVKRHVULJKWRQ
WKHEHOWVRWKHELQVVWD\FOHDQDQGGRQ¶WPHVVXSHYHU\RQH¶VFORWKHVDQG
FRPSXWHUV´:KLFKLVDFWXDOO\DQLFHWKLQJWKDWPDNHVSHUIHFWVHQVH
1RZ,JHWLW$QG,DSSUHFLDWHLW
7KH/HVVRQ$VLJQDQGDQH[SODQDWLRQFDQWXUQWHQVLRQLQWR
DSSUHFLDWLRQ1RWVRKDUG
6KDUH 5LJKWQRZ,¶PLQWKHPLGGOHRIRQHRIWKHPRVWLQWHQVHKRPHILWQHVV
ZRUNRXWSURJUDPVDYDLODEOH±3;
3;LVVWUDLJKWGD\VRIJXWEXVWLQJLURQSXPSLQJIDWWULPPLQJ
PXVFOHEXLOGLQJHQGXUDQFHHQKDQFLQJQXWULWLRQPDVWHULQJOLIH
FKDQJLQJKHOO«DQGVRIDU±,ORYHLW
7RGD\,FRPSOHWHG'D\ZKLFKZDVWKH\RJDGLVF,¶YHQHYHUVZHDWHG
PRUHLQP\HQWLUHOLIHDQG,KDYHQHZO\IRXQGUHVSHFWIRUDQ\RQHZKR
GRHV\RJDRQDUHJXODUEDVLV,W¶VQRZRQGHUZK\VRPHRIWKHZRUOG¶VWRS
DWKOHWHVWDNH\RJDFODVVHV
$Q\ZD\VWKLVSRVWLVQ¶WDERXWZK\,¶PSXWWLQJP\VHOIWKURXJKWKLV
SURJUDPRUHYHQDERXWKRZDZHVRPHWKHLUPDUNHWLQJFDPSDLJQLV,
ZLOOKRZHYHUNHHS\RXXSGDWHGRQP\SURJUHVVHYHU\WKLUW\GD\V,¶OO
HYHQLQFOXGHEHIRUHDQGDIWHUSLFWXUHVRQFH,KDYHDOHVVHPEDUUDVVLQJ
DIWHUSLFWXUHWRVKRZ\RXLQGD\V-XVWDVDIRUHZDUQLQJ«,ZLOOEH
VKLUWOHVVLQWKRVHSKRWRVJDVS
,¶PGRLQJWKLVSDUWO\WRNHHSP\VHOIDFFRXQWDEOHIRUVWD\LQJIRFXVHGDQG
FUXVKLQJLWGXULQJHDFKZRUNRXWDQGSDUWO\WRPRWLYDWHDQ\RI\RXZKR
PD\EHORRNLQJWRPDNHVLPLODUFKDQJHVLQ\RXUOLIHDVZHOO

7RGD\¶V7DEEORLG3(5621$/1(:6)25FROOHJHJHWDZD\V#DROFRP -XQH
3;LVDERXWPDNLQJH[WUHPHFKDQJHVLQ\RXUERG\DQGLQ\RXUOLIH KRPHZKHUHWKHUH¶VDOZD\VDQHDV\RSSRUWXQLW\WRMXVWNHHSZRUNLQJ
DQGPDQ\RIWKHWRROVDQGSKLORVRSKLHVEHKLQGWKHSURJUDPDUHGLUHFWO\ QRQVWRS
UHODWHGWREHFRPLQJDVXFFHVVIXOHQWUHSUHQHXU,¶GOLNHWRVKDUHWKHVH
ZLWK\RXWRGD\ 7DNHEUHDNV6FKHGXOHWKHPLI\RXKDYHWREXWGR\RXUVHOIDIDYRUDQG
JLYH\RXUPLQGDUHVWHYHU\RQFHDQGDZKLOH<RXZLOOEHFRPHPXFK
6XFFHVV7DNHV7LPHWR$FKLHYH PRUHSURGXFWLYH
,LQYHVWHGLQ3;EHFDXVHLWVHHPHGOLNHWKHPRVWUHDOLVWLFILWQHVV 0RWLYDWLRQIURP2WKHUVLV.H\
SURGXFWWRPHEHLQJDGD\ZRUNRXWSURJUDP7KDW¶VWKUHHHQWLUH
PRQWKVZKLFKLVDORWRIWLPHWRLQYHVWVRLWPDNHVVHQVHWKDWLI,VWLFN :KDW,HVSHFLDOO\OLNHDERXW3;LVWKDWWKH\SURPRWHWKHLUPHVVDJH
ZLWKWKHSURJUDP,ZLOOVHHGUDVWLFUHVXOWV ERDUGV±DFRPPXQLW\ZKHUHRWKHUSHRSOHZKRDUHJRLQJWKURXJKWKH
ZRUNRXWFDQJHWWRJHWKHU,MRLQHGDSDUWLFXODUWKUHDGDIHZGD\VEHIRUH,
7KHLGHDKHUHLVWKDWLWWDNHVWLPHWRVHHUHVXOWV,WWDNHVWLPHWR VWDUWHGZKLFKFRPSULVHVRISHRSOHDOOVWDUWLQJWKHURXWLQHRQWKHH[DFW
VXFFHHG VDPHGD\:H¶UHDOUHDG\RYHUSRVWVLQWRLWDQGOLNH,VDLGZH¶UH
RQO\RQWKHWKGD\RIWKHSURJUDP:H¶UHDOONHHSLQJHDFKRWKHU
$VDQHQWUHSUHQHXUWKHVDPHLGHDVDSSO\<RXZRQ¶WJHWULFKRYHUQLJKW PRWLYDWHGDQGLQDZD\KROGLQJHDFKRWKHUDFFRXQWDEOHWRR
DQGDQ\WKLQJWKDWFODLPVWRKHOS\RX³JHWULFKTXLFN´LVDVFDPLQP\
RSLQLRQ7UXHEXVLQHVVHVJURZIURPKDUGZRUNDQGWLPH ,I\RX¶YHUHDG\HVWHUGD\¶VSRVWDERXWPDVWHUPLQGJURXSV\RX¶G
XQGHUVWDQGMXVWKRZLPSRUWDQWLWLVWRVWD\FRQQHFWHGZLWKRWKHUSHRSOH
8QIRUWXQDWHO\PDQ\SHRSOHJLYHXSEHFDXVHWKH\¶UHQRWVHHLQJWUDIILF IRU\RXUEXVLQHVVDVZHOO
FXVWRPHUVRUVDOHVULJKWDZD\±PXFKOLNHKRZVRPHSHRSOHJLYHXSRQ
WKHVHZRUNRXWSURJUDPVEHFDXVHWKH\GRQ¶WKDYHDSDFNDIWHUWKHILUVW ,I\RXJRIRUDJRDODOOE\\RXUVHOILW¶VJRLQJWREHWKDWPXFKWRXJKHU
GD\ 7KDW¶VZK\SHRSOHDOZD\VVD\LW¶VPXFKHDVLHUWRJRWRWKHJ\PLI\RXKDYH
DZRUNRXWSDUWQHURUJRRQDGLHWLIVRPHRQHHOVHLVGRLQJLWWRR
.HHSLQJ7UDFNRI1XPEHUVLV,PSRUWDQW
7KHVDPHJRHVIRU\RXUEXVLQHVV±ILQG\RXURWKHUKDOIDQGZRUN
:KHQWUDLQLQJZLWK3;LW¶VUHFRPPHQGHGWRZULWHGRZQDQGUHFRUG WRJHWKHUWRZDUGWKDWFRPPRQJRDO
DOPRVWHYHU\WKLQJ
³%ULQJ,W´
,¶YHRQO\EHHQWUDLQLQJIRUGD\VDQGDOUHDG\,¶YHUHFRUGHGPRUH
QXPEHUVWKDQ,HYHUKDYHDERXWP\ERG\,UHFRUGP\ZHLJKWDQGERG\ (DFKGD\DIWHU,SRSLQDQHZ'9'EHIRUHWKHZRUNRXWEHJLQVWKHZRUGV
IDWSHUFHQWDJHHDFKPRUQLQJ,ZULWHGRZQWKHQXPEHURIUHSVDQGZLWK ³%5,1*,7´DSSHDURQWKHVFUHHQ
ZKDWZHLJKWIRUHDFKRIWKHH[HUFLVHV,SHUIRUP,UHFRUGHYHU\WKLQJ,HDW
VRWKDW,NQRZDOORIWKHQXWULWLRQDOIDFWVDERXWZKDW¶VJRLQJLQVLGHP\ 7RPHWKHVHZRUGVDUHV\QRQ\PRXVWR³&586+,7³ZKLFKLVWKH7LWOHRI
ERG\ *DU\9D\QHUFKXN¶VERRNDERXWEHFRPLQJVXFFHVVIXOE\MXVWJRLQJDOORXW
DQGGRLQJZKDW\RXKDYHWRGRWRDFKLHYH\RXUJRDOV
,WPD\VHHPOLNHDORWRI³H[WUD´ZRUNEXWLW¶VYLWDOEHFDXVHLWFDQSURYH
WKDWZH¶UHPDNLQJSURJUHVVZKLFKLVWRWDOO\PRWLYDWLQJDQGDOVRKHOS 7KHPDLQSRLQWKHUHLVWKDWQRPDWWHUZKDW\RXZDQWWRDFFRPSOLVKQR
GHWHUPLQHZKDWDUHDVPD\QHHGLPSURYHPHQW PDWWHUZKDWLWLV±ZKHWKHULW¶VKDYLQJDERG\OLNH7D\ORU/DXWQHUIRU
\RX7ZLOLJKWIDQVRXWWKHUHRUVWDUWLQJWKHQH[W$SSOH,QFLQRUGHUWR
,QWKHRQOLQHEXVLQHVVZRUOGLW¶VLPSRUWDQWWRNHHSWUDFNRI\RXUVWDWV GRLW\RXKDYHWRUHDOO\ZDQWLWDQGJLYHLWDOO\RXJRW
DQGQXPEHUVIRUWKHYHU\VDPHUHDVRQV
±HYHU\WKLQJ\RXKDYH
,IZHGRQ¶WNQRZZKHUHZH¶UHDWKRZGRZHNQRZKRZWRJHWWRZKHUH
ZH¶UHJRLQJ" &RPPLWPHQW
,W¶VD*RRG,GHDWR7DNH%UHDNV 7KHUHDUHDQXPEHURIRWKHUFRQQHFWLRQVWKDWFRXOGEHPDGHEHWZHHQ
ZRUNLQJRXWDQGGRLQJEXVLQHVVRQOLQHEXWWKHUH¶VRQHRYHUDOOWKHPH
$OWKRXJK3;LVH[WUHPHILWQHVVWKH\DOVRXQGHUVWDQGWKDWLW¶V WKDWHQFRPSDVVHVHYHU\WKLQJ,¶YHDOUHDG\PHQWLRQHGDQGWKDW¶V
LPSRUWDQWJLYHRXUERGLHVDQGPXVFOHVDEUHDNVRPHWLPHV6KRUWEUHDNV FRPPLWPHQW
DUHVFDWWHUHGWKURXJKRXWHDFKRIWKHZRUNRXWVDQGWKHUH¶VHYHQGD\RII
IURPZRUNLQJRXWHQWLUHO\HDFKZHHN ,QRUGHUWREHFRPHVXFFHVVIXO\RXPXVWFRPPLW<RXPXVWFRPPLWQRW
RQO\WRZKDW\RXUGRLQJDQGZKDW\RXUSODQVDUHLHVWLFNLQJZLWKWKH
%UHDNVDUHLPSRUWDQWEHFDXVH\RXGRQ¶WZDQWWRRYHUZRUN\RXUVHOIDQG SURJUDPEXW\RXPXVWDOVRFRPPLWWR\RXUVHOI7KDWPHDQVEHLQJ
WKHVDPHKROGVWUXHIRUGRLQJEXVLQHVVHVSHFLDOO\LI\RX¶UHZRUNLQJIURP FRQILGHQWLQZKDW\RXNQRZDQGFRPPLWWHGWRZKHUH\RXZDQWWREH

1RWKLQJFDQVWRS\RX DXWKRUVIURPDURXQGWKHZRUOG
'RQ¶WIRUJHWSRGFDVWVRUPSVZKLFKFDQEHYHU\IXQQ\RUPRWLYDWLRQDO
±±±±±±±
$VDOZD\V,MXVWZDQWHGWRWKDQN\RXIRUVXEVFULELQJ7KLVEORJLVD &RQVLGHUVWDUWLQJDFRQIHUHQFHZLWKDXQLTXHSODWIRUPDQGZRUOGZLGH
VXFFHVVEHFDXVHRI\RXDQG\RXUVXSSRUW+HUH¶VWR\RXURQOLQH UHDFKOLNH7('
VXFFHVV
2U\RXFDQEORJ\RXULGHDIRUVHYHUDO\HDUVLQDURZVORZO\EXLOGLQJXS
%HFRPHD)DQRIWKH6PDUW3DVVLYH,QFRPH%ORJRQ)DFHERRNDQGMRLQ WUXVWDQGPDNLQJDQLPSDFWRYHUWLPH
WKHFRQYHUVDWLRQ
2IFRXUVHWKHUH¶VQRULJKWDQVZHU%XWWKHUH¶VSUREDEO\DEHVWDQVZHU
7KDQN\RXVRPXFK WKDWPDWFKHV\RXUWLPHIUDPHEXGJHWDXGLHQFHDQGLGHD
:KDW3;&DQ7HDFK8V$ERXW%HFRPLQJD6XFFHVVIXO(QWUHSUHQHXU
'$01,:,6+,¶'7+28*+72)7+$7
6(7+¶6%/2*
+RZWRPHDVXUH\RXUZRUGRI
8SGDWHGOLQNV7KHZUDSSHU
PRXWK²OLYHZLWK2OLYLHU
PDWWHUV
-8130 %ODQFKDUGIURP:RUGRI0RXWK
0\SUHYLRXVSRVWKDGWZRLQFRUUHFWRUPLVVLQJOLQNVEXWWKH\¶YHEHHQ 6XSHUJHQLXV
IL[HG&OLFNWKURXJKWRVHHWKHFRUUHFWHGYHUVLRQ6RUU\ -8130
6(7+¶6%/2*
7KHZUDSSHUPDWWHUV
-8130
:KHQ\RXKDYHDELJLGHDWKHTXHVWLRQLVKRZWRVSUHDGLW"
<RXFDQJRWKURXJKDWUDGLWLRQDOSXEOLVKHUDQGKDYHLWSULQWHGLQWKH
WULHGDQGWUXHZD\OLNH&OD\6KLUN\,KDGDFKDQFHWRUHDG&OD\¶VQHZ
ERRNDIHZPRQWKVDJR1RVXUSULVHLW¶VSXUHJROGXQDOOR\HGLQVLJKW
DERXWWKHVWDWHRIPHGLDDQGWKHZRUOG
,I\RX¶UHORRNLQJIRUELJLGHDVDQGDUHSUHSDUHGWRORVHDOLWWOHVOHHS
WKHUH¶VQREHWWHUERRNWREX\ULJKWQRZ
$VDSUHYLHZIRURXUXSFRPLQJ:RUGRI0RXWK6XSHUJHQLXVHYHQWLQ
<RXFDQKDYHVRPHRQHWDNHDVKRUWVSHHFKEDVHGRQ\RXUERRNDQGKDYH 1HZ<RUNRQ-XO\WKZH¶UHIHDWXULQJDEXQFKRIWKHYLGHRVIURPRXU
WKHPWXUQLWLQWRDDQLPDWHGYLGHR'DQ3LQN¶VYLGHRKDVEHHQVHHQDERXW ODVW³+RZWREH*UHDWDW:RUGRI0RXWK0DUNHWLQJ´HYHQWLQ&KLFDJR
WLPHVDVRIWHQDVKLVERRNKDVEHHQSXUFKDVHG9LGHRVSUHDGV
,W¶VJRLQJWREHDQDPD]LQJGD\ILOOHGZLWKKRZWRFODVVHVUHDO
<RXFDQWXUQ\RXULGHDOLNHDIRFXVRQHQWUHSUHQHXUVLQWRFRROWUDGLQJ ZRUOGFDVHVWXGLHVDQGEULOOLDQWDXWKRUV<RX¶OOZDONDZD\ZLWKD
FDUGVOLNH(YDQGLG QRWHERRNIXOORISUDFWLFDOLGHDVWRVWDUWHDUQLQJPRUHUHIHUUDOVDQG
UHFRPPHQGDWLRQVWKHYHU\QH[WGD\
<RXFDQVNLSWKHSULQWLQJDOWRJHWKHUDQGVWDUW\RXURZQYLGHRXQLYHUVLW\
OLNH.DKQ$FDGHP\ <RX¶UHJRLQJWRORYHLW+HUH¶VDSUHYLHZRIWKHH[SHULHQFHIHDWXULQJ
2OLYLHU%ODQFKDUGRQKRZWRPHDVXUH\RXUZRUGRIPRXWKDQGVRFLDO
3HUKDSVZULWHDVKRUWPDQLIHVWRDQGZDWFKLWVSUHDGDVDIUHHHERRN/LNH PHGLDSURJUDPV
&KDQJHWKLVDIUHHVHUYLFHWKDWKDVUHDFKHGPLOOLRQVZLWKWKHZRUNRIWRS

2OLYLHU¶VELJLGHD*UHDWPHDVXUHPHQWVWDUWVZLWKJUHDWJRDOV $QGWKLVLVQ¶WMXVWDKREE\
'HWHUPLQHZKDW\RX¶UHWU\LQJWRDFFRPSOLVKDQGVWDUWPHDVXULQJDJDLQVW
WKDW 0DQMXODKDVWXUQHGKHUSDVVLRQLQWRVRPHWKLQJWKDWEULQJVLQ
PRQH\ODVW\HDUWKH\HVWLPDWHWKDQNVWRD
+RZWR0HDVXUH:RUGRI0RXWK²SUHVHQWHGE\2OLYLHU%ODQFKDUGIURP <RX7XEHSURJUDPDQGDGVRQKHURZQZHEVLWH²PDGH
*DV3HGDORQ9LPHR SRSXODUE\KHUYLUDOVXFFHVV
³,WKLQNLQEDFNRIP\PLQG,DOZD\VNQHZ,ZRXOGGR
6KDUH VRPHWKLQJZLWKFRRNLQJDQGLWZLOOGRJRRGEXW,QHYHU
WKRXJKW,ZRXOGWHDFKDQG,ZRXOGHQMR\VRPXFK´0DQMXOD
VDLG³,I\RXFDQPDNHPRQH\GRLQJZKDW\RXUHDOO\HQMR\LW¶V
WKHEHVWZD\WRPDNHPRQH\´
3KRWRE\6DP+RGJVRQ
%86,1(6623325781,7,(6:(%/2*
$Q,QWHUQHW6HQVDWLRQ$QG )URP%XVLQHVV2SSRUWXQLWLHV:HEORJ
0DNLQJ0RQH\7RR
-8130
%86,1(6623325781,7,(6:(%/2*
7XUQLQJ3HQQLHV,QWR0LOOLRQV
-8130
7KHILUVWYLGHRVWDUWVRXWZLWKDQXQVWHDG\VKRWRI0DQMXOD-DLQLQKHU
5DQFKR%HUQDUGRNLWFKHQ$OH[-DLQKHUKXVEDQGDQGWKHPDQEHKLQG
WKHFDPHUDVD\V³*R´ 5HXWHUV
0DQMXODEHJDQH[SODLQLQJKHUUHFLSHIRUJXODEMDPXQDQ,QGLDQGHVVHUW :HURQLND&\EXOVNDQHYHULQWHQGHGWRVWUD\IURPWKH
RIIULHGGRXJKEDOOVLQV\UXSDQG$OH[XSORDGHGLWRQ<RX7XEH+H FRUSRUDWHSDWK%XWZKHQWKHUHFHVVLRQKLWDQGVKHORVWKHU
ZDQWHGWRGRVRPHWKLQJVSHFLDOIRUKHU,WZDVWKHLUDQQLYHUVDU\ PDUNHWLQJMREZLWKD1HZ<RUNMHZHOU\PDQXIDFWXUHUWKH
UHFHQW0%$JUDGXDWHVHWKHUVLJKWVRQHQWUHSUHQHXUVKLS
7KH\KDGWRGRLWDOOLQRQHWDNHEHFDXVHEDFNWKHQ$OH[GLGQ¶WNQRZKRZ UHSOLFDWLQJDQRQOLQHDXFWLRQVLWHVKHVDZWKULYLQJLQKHU
WRHGLWYLGHR%XWRQFHWKHYLGHRZDVXS0DQMXODPDUYHOHGDWKRZPDQ\ QDWLYH3RODQG
YLHZVLWJDUQHUHG
7KH\HDUROGpPLJUpDQGKHUKXVEDQG.U\VWLDQD
7KH9RLFHRI6DQ'LHJRUHSRUWVQRZPRUHWKDQWKUHH\HDUVODWHUWKH FRPSXWHUSURJUDPHUZLWKH[SHUWLVHLQILQDQFLDOVHUYLFHV
\HDUROG0DQMXODLVVRPHZKDWRIDQLQWHUQHWVHQVDWLRQ6KH¶VSRVWHG LQYHVWHGVL[PRQWKVRIVZHDWHTXLW\WRGHYHORS%LG5RGHRDQ
,QGLDQYHJHWDULDQFRRNLQJYLGHRVDQGWKHPRVWSRSXODURQH²IRUURWLDQ DXFWLRQVLWHWKDWRIIHUVSRSXODULWHPVVXFKDVL3DGVHOHFWURQLF
,QGLDQIODWEUHDG²KDVEHHQYLHZHGPRUHWKDQPLOOLRQWLPHV JDPHVDSSOLDQFHV±HYHQJROG±WRWKHKLJKHVWELGGHU

³,WKLQN$PHULFDQVDUHUHDOO\ELJEDUJDLQKXQWHUV´VDLG 1HJDWLYHVSDFHEHWZHHQWKHOHWWHUV³(´DQG³;´FUHDWHVDQDUURZ
&\EXOVNDZKRUXQV%LG5RGHRRXWRIKHU-HUVH\&LW\1HZ
-HUVH\DSDUWPHQW³6RZHGHFLGHGWRJLYHLWDVKRW´
%LG5RGHRMXVWUHDFKHGLWVRQH\HDUDQQLYHUVDU\±DQHWHUQLW\
LQWKHZRUOGRIRQOLQHDXFWLRQVZKHUHVLWHVTXLFNO\FRPHDQG
JR,WKRVWVDXFWLRQVGDLO\XSWKUHHIROGVLQFHLWV
ODXQFK7KHVLWHERDVWVUHJLVWHUHGXVHUVDQGDFWLYH
ELGGHUVHDFKVSHQGDPLQLPXPRIZLWKVRPHSD\LQJDV
PXFKDVIRUSDFNDJHVWKDWDOORZWKHPWRELGRQPRUH
SRSXODULWHPV7HQEXFNVJHWVWHQELGVZKLOHSXUFKDVLQJD
ELJJHUSDFNDJHRIIHUVGLVFRXQWVRQWKHGROODU
/*
³:LWKRQOLQHUHWDLODQGRQOLQHDXFWLRQV,WKLQNWKHUHLVKXJH
6RPHSHRSOHEHOLHYHWKDW3DF0DQLVKLGGHQLQVLGHWKH/*ORJR
JURZWKSRWHQWLDO´VDLG&\EXOVNDZKRLVSURMHFWLQJ%LG5RGHR
VDOHVLQH[FHVVRIPLOOLRQIRU³7KHVN\LVWKHOLPLW´
6FUHHQVKRWIURP%LG5RGHR
)URP%XVLQHVV2SSRUWXQLWLHV:HEORJ
$PD]RQ
%86,1(6623325781,7,(6:(%/2* /RJRIHDWXUHVDQDUURZVKDSHGVPLOHWKDWUHSUHVHQWVFXVWRPHU
&RRO/RJRV:LWK+LGGHQ VDWLVIDFWLRQDQGUHIOHFWV$PD]RQ¶VJRDOWRVHOOHYHU\SURGXFWIURP$WR=
6\PEROV
-8130
'LG\RXNQRZWKDWVRPHFRPSDQLHVKDYHV\PEROVKLGGHQLQVLGHWKHLU
ORJRV"
&KHFNRXW7R[HOFRP¶VURXQGXSRIFUHDWLYHORJRGHVLJQVWKDWXVH
QHJDWLYHVSDFHWRFRQYH\VXEOLPLQDOPHVVDJHV
*RRGZLOO
*RRGZLOO¶VORJRLVDVW\OL]HGOHWWHU³J´WKDWGRXEOHVDVDVPLOLQJIDFH 7REOHURQH
7KHLPDJHRIDEHDULVKLGGHQLQWKH0DWWHUKRUQPRXQWDLQV\PEROL]LQJ
WKHWRZQZKHUHWKHILUVW7REOHURQHFKRFRODWHEDUZDVFUHDWHG
)HG([

6HHPRUHORJRVKHUH 3KRWRE\WRWDO$OGR
3KRWRVE\*RRGZLOO)HG([/*$PD]RQ7REOHURQH
%86,1(6623325781,7,(6:(%/2*
%86,1(6623325781,7,(6:(%/2* *UDGV&DQ*URZ7KHLU2ZQ
/DLG2II"6WDUW$%XVLQHVV -REV
-8130 -8130
5KRQGD$EUDPVZULWHVIRU*DQQHWWWKDWDVDFROOHJHJUDGXDWH\RXUQH[W
:KHQ'DUUHQ'UHZLW]IRXQGKLPVHOIODLGRIIDQGLQQHHGRIZRUNKHGLG
H[SHFWHGVWHSLVWRORRNIRUDMRE
ZKDWDQ\RQHZRXOGGRKHZHQWORRNLQJIRUDQHZMRE+RZHYHULWZDVQ¶W
DMREWKDWKHIRXQG$FFRUGLQJWR7KH$VVRFLDWHG3UHVVLWZDVZKHQKH
,I\RX¶YHMXVWJUDGXDWHG,¶PVXUH\RXUSDUHQWVDUHXUJLQJ\RX
VWDUWHGUHFHLYLQJRIIHUVWRGRIUHHODQFHZRUNIRUGLIIHUHQWFRPSDQLHVWKDW
WRJHWDMRE$IWHUDOOWKH\GRQ¶WUHDOO\ZDQW\RXPRYLQJEDFN
OHDG'DUUHQWRDQHZXQH[SHFWHGWLWOHVPDOOEXVLQHVVRZQHU
LQWR\RXUROGURRPSOD\LQJYLGHRJDPHVDQGZDONLQJDURXQG
WKHKRXVHLQ\RXUXQGHUZHDU
'UHZLW]ZKRKDGZRUNHGIRUDQDGDJHQF\LQ$XVWLQ7H[DV
GHVFULEHVKLPVHOIDV³DQRWKHUVWDWLVWLF´RIWKHUHFHVVLRQ
%XWDV\RXVHWRXWWRORRNIRUDMRE\RX¶UHJRLQJWREHJLYHQ
KDYLQJEHHQOHWJREHFDXVHRIWKHZHDNDGYHUWLVLQJPDUNHW
GLVFRXUDJLQJLQIRUPDWLRQDQGDGYLFH<RX¶UHJRLQJWREHWROG
:LWK\HDUVRIH[SHULHQFHKHKDGKRSHVRIILQGLQJDQRWKHU
\RX¶UHJUDGXDWLQJDWDWLPHRIRQHRIWKHZRUVWKLULQJ
SRVLWLRQ%XWWKHVDODULHVKHZDVRIIHUHGZHUHWRRORZ2UKH
HQYLURQPHQWVWKDW\RXUHDUQLQJVZLOOEHKXUWIRUWKHUHVWRI
ZDVWROG³\RX¶UHRYHUTXDOLILHG´
\RXUOLYHVWKDW\RXKDYHWRORZHU\RXUH[SHFWDWLRQV
:KLOHKHZDVORRNLQJIUHHODQFHZRUNVWDUWHGFRPLQJKLVZD\
7KDWFDQOHDG\RXWREHGLVFRXUDJHG
)RUPHUFOLHQWVFROOHDJXHVIULHQGVDQGUHODWLYHVDVNHG
'UHZLW]IRUPDUNHWLQJKHOS6R'UHZLW]KDGVRPHLQFRPH
%XWLWDOVRPHDQVLW¶VDIDQWDVWLFWLPHWRIROORZ\RXUGUHDPV
FRPLQJLQZKLOHKHFRQWLQXHGWRORRNIRUDMRE
%HFDXVH±LQFDVH\RXPLVVHGLWLQFROOHJHHFRQRPLFVFODVV±
WKHUH¶VVRPHWKLQJFDOOHG³RSSRUWXQLW\FRVW´2SSRUWXQLW\
$WVRPHSRLQWKHUHDOL]HGWKHUHPLJKWEHHQRXJKEXVLQHVVIRU
FRVWLQEULHILVZKDW\RXJLYHXSIRUSXUVXLQJRQH
KLPWRZRUNIRUKLPVHOI
RSSRUWXQLW\UDWKHUWKDQDQRWKHU6RLI\RXJUDGXDWHGLQ
ZLWKSOHQW\RIKLJKSD\LQJLQWHUHVWLQJHQWU\OHYHOMREVLI\RX
³,W¶VOLNHVZLPPLQJLQWKHRFHDQZLWKDILVKERZODQGVD\LQJ
WRRNWLPHRIIWRSXUVXH\RXUGUHDPVRUGRYROXQWHHUZRUN
µ,¶PORRNLQJIRUVHDZDWHU¶´'UHZLW]VDLG5LJKWQRZKH¶V
\RXSDLGDKLJKRSSRUWXQLW\FRVW
GRLQJPDUNHWUHVHDUFKZRUNEXWLQWLPHKRSHVWRKDYHDIXOO
VHUYLFHDGYHUWLVLQJEXVLQHVV
1RZWKHRSSRUWXQLW\FRVWLVPLQLPDO,I\RXFDQ¶WILQGDJRRG

MREZKDWDUH\RXJLYLQJXS":RUNLQJDW0F'RQDOG¶VDQGWKHQ *UHHQWDUJHWQRWHVWKDW³:KLOHWKHPRUHWUDGLWLRQDO
KDQJLQJDURXQGZLWK\RXUEXGGLHV" PDUNHWLQJFKDQQHOVIRUODZILUPFUHGHQWLDOLQJFRQWLQXHWR
GRPLQDWH«LQKRXVHDWWRUQH\VQRZDUHXVLQJQHZPHGLD
,QVWHDGJHWRXWWKHUHDQGH[SORUH\RXUVHOIDQGWKHZRUOG'R SODWIRUPVWRGHHSHQWKHLUSURIHVVLRQDOQHWZRUNVWRREWDLQ
VRPHWKLQJLPSRUWDQWHYHQLILWGRHVQ¶WSD\ZHOO±RUGRHVQ¶W WKHLUOHJDOEXVLQHVVDQGLQGXVWU\QHZVDQGLQIRUPDWLRQDQG
SD\DQ\WKLQJ,¶PDVVXPLQJ\RXGRQ¶WKDYHDKHFNRIDORWRI WRHQULFKWKHLUVRFLDODQGSHUVRQDOOLYHV0RVWLPSRUWDQWO\
UHVSRQVLELOLWLHVDQG\RXFDQVRPHKRZPDQDJHDQ\GHEW\RX WKH\H[SHFWWKDWWUHQGWRDFFHOHUDWHLQWKHIXWXUH´
UDFNHGXSLQFROOHJH
%XWVRFLDOPHGLDLVVWLOOXQFKDUWHGWHUULWRU\IRUPDQ\ODZ\HUV
)ROORZ\RXUSDVVLRQ±EHDPXVLFLDQFKHIZULWHU2UILQG SDUWLFXODUO\LQELJILUPVVDLG5DFKHO=DKRUVN\DOHJDODIIDLUV
\RXUVHOIE\ZRUNLQJRQVRPHWKLQJELJJHUWKDQ\RXUVHOI7KH UHSRUWHUIRUWKH$%$-RXUQDO³9DULHGDQGRXWGDWHGHWKLFV
ZRUOGQHHGV\RX:RUNRQSURMHFWVWRVDYHWKHHQYLURQPHQW UXOHVLQUHJDUGVWRRQOLQHFRPPXQLFDWLRQDVZHOODV
RUDQLPDOVRURWKHUKXPDQEHLQJV QXPHURXVH[DPSOHVRIFDVHVSXWLQUHDOMHRSDUG\EHFDXVHRI
SURVHFXWRUVDQGMXGJHVSRVWLQJRQ)DFHERRNRUMXURUV
2UWDNHWKDWJUHDWLGHD\RXKDYHDQGVWDUWDEXVLQHVV<RX WZLWWHULQJPLGWULDORQO\IXHODJHQHUDOWHQGHQF\LQWKHOHJDO
KDYHWKHHQHUJ\HQWKXVLDVPDQGGULYHWKDWFDQOHDG\RXWR SURIHVVLRQWRGLVWUXVWQHZWHFKQRORJLHV´
FUHDWHJUHDWWKLQJV
³$JUHDWH[DPSOHRIWKLVLV%RE:KLWHDSDUWQHUOHYHO
:KDWHYHU\RXGRWDNHLWVHULRXVO\ DWWRUQH\LQ)ORULGD>ZKR@XVHV7ZLWWHUWRVKDUHWKHEHVWWHFK
DUWLFOHVKHILQGVHDFKZHHN$IWHUDIHZPRQWKVRIILQGLQJDQG
3KRWRE\KDUU\NHHO\ VKDULQJJUHDWWHFKDUWLFOHV%REZDVDEOHWREULQJLQDFRXSOH
RIWHFKFRPSDQLHVDVQHZFOLHQWV´'D\WRQQRWHV³7KH\FDPH
WRUHFRJQL]HE\WKHTXDOLW\RIKLVUHVHDUFKDQGWKHDUWLFOHVKH
VKDUHGWKDWKHUHDOO\JHWVLW´
³,KDYHXVHG>7ZLWWHU@H[WHQVLYHO\WRJHWLQIRUPDWLRQRXW
WKHUHDQGWRVKRZP\SDUWLFXODUH[SHUWLVHLQDZD\PDUNHWLQJ
GROODUVFRXOGQHYHUGR´VDLG'U/LVD+DLOH3DUWQHUDQGFR
FKDLURI'/$3LSHU¶VJOREDOOLIHVFLHQFHVVHFWRU³,QDGGLWLRQWR
LQIRUPLQJSHRSOHDERXWWKHILUPDQGP\H[SHUWLVH,XVH
%86,1(6623325781,7,(6:(%/2* 7ZLWWHUWRJDWKHUFXUUHQWQHZVLQP\LQGXVWU\DQGJHQHUDOO\´
VDLG+DLOH
/DZ\HUV$UH8VLQJ6RFLDO0HGLD
-81$0 3KRWRE\NDLNRXUDJRYWQ]
$FFRUGLQJWR0DVKDEOHFRPZKLOHPRVWODZILUPVELJDQGVPDOOWHQGWR
HUURQWKHWUDGLWLRQDOVLGHVRFLDOPHGLDKDVFUHDWHGQHZRSSRUWXQLWLHV
IRUDWWRUQH\VWRIORXULVKDVWKRXJKWOHDGHUVDQGHQWUHSUHQHXUV
$UHFHQWVXUYH\IURPFRPPXQLFDWLRQVFRQVXOWDQF\

-XQH
7RGD\·V7DEEORLG
6(7+¶6%/2*
/XOD¶VORJLF
-81$0
:KHQ%O\WKHDQGKHUSDUWQHUVVWDUWHG/XOD¶V$SRWKHFDU\WKHEHVWYHJDQ
LFHFUHDPVWDQGLQWKLVKHPLVSKHUHWKH\GLGQ¶WKDYHHQRXJKPRQH\WR
DIIRUGWKHOHWWHUVWRSXW³'DLU\IUHH´RQWKHVLJQLQWKHLUZLQGRZ7KH\
FRXOGQ¶WHYHQDIIRUG³YHJDQ´6RWKHVLJQDJHVD\VQRWKLQJDERXWZKDW
WKH\GRQ¶WSXWLQWKHLULFHFUHDP
:KDWWKH\GLVFRYHUHGZDVWKDWZRUGDPRQJWKHWULEHRIYHJDQVLQWKH
(DVW9LOODJHRI1HZ<RUN&LW\DQHYHQELJJHUJURXSWKDQ\RXPLJKW
LPDJLQHVSUHDGIDVW7KHSURGXFWZDVUHPDUNDEOHHQRXJKWKDWMXVWDIHZ &RS\EORJJHU%ULDQ&ODUNKDGDQDPD]LQJFRQYHUVDWLRQZLWKHQWUHSUHQHXU
KDSS\FXVWRPHUVZHUHHQRXJKWRVSUHDGWKHZRUG -DVRQ)ULHGRI6LJQDOVDQGDXWKRU6WHYHQ3UHVVILHOGDQGSXWLW
WRJHWKHULQWRDIUHHUHSRUW3UREORJJHU'DUUHQ5RZVHFDOOHGWKHUHSRUWD
7KHRWKHUWKLQJWKH\GLVFRYHUHGLVWKDWQRQYHJDQVZHUHZLOOLQJWRZDON ³PXVWUHDG´7KDW¶VJRRGHQRXJKIRUPH
RQLQLIWKHSODFHORRNHGFRROHQRXJK,QIDFWWKHODFNRILQJUHGLHQW
GHFODUDWLRQRQWKHLUZLQGRZDFWXDOO\KHOSHGWKHPUHDFKRXWWRSHRSOH 7KHUHSRUWLVSDJHVDQGLVFDOOHG+RZWR+DYHD*UHDW/LIHDQGD*UHDW
ZKRPLJKWKDYHEHHQVFDUHGDZD\DWWKHODFNRIPLON %XVLQHVV(VSHFLDOO\LI<RX¶UHQRWWKH³%XVLQHVV´7\SHDQGLVSDUWRID
QHZSURJUDPWKDW%ULDQ&ODUNKDVSXWWRJHWKHUFDOOHG/DWHUDO$FWLRQ
,QNRQWKHZHEVLWHLVIUHHVRWKH\XVHWKHYZRUGWKHUHEXWHYHQWKRXJK
WKH\FDQQRZDIIRUGLWWKHZLQGRZLVVWLOOSURXGO\PXWHRQWKHLUULJRU +HUH¶VZKDW¶VLQFOXGHG
UHJDUGLQJLQJUHGLHQWV1RVHQVHVFDULQJDZD\FXVWRPHUVZKRGRQ¶WFDUH
DQGWKHFXVWRPHUVZKRGRFDUHSUREDEO\KHDUGWKHQHZVIURPWKHLU $UHFRUGHGFRQYHUVDWLRQZLWKHGLWHGWUDQVFULSWEHWZHHQ
IULHQGVLQDGYDQFH SRHWHQWUHSUHQHXU0DUN0F*XLQQHVVDQGEHVWVHOOLQJ
QRYHOLVWDQGKLVWRULDQ6WHYHQ3UHVVILHOGDERXWWKHWUXHDUW
RIHQWUHSUHQHXUVKLS
%86,1(6623325781,7,(6:(%/2* $UHFRUGHGFRQYHUVDWLRQZLWKHGLWHGWUDQVFULSWEHWZHHQ
)UHH0XVW5HDG5HSRUWIRU ZULWHUHQWUHSUHQHXU%ULDQ&ODUNKH\WKDW¶VPHDQG

VLJQDOVIRXQGHU-DVRQ)ULHGDERXWEXLOGLQJEXVLQHVVHV
(QWUHSUHQHXUV WKDWSURGXFHQRWMXVWUHPDUNDEOHSURILWVEXWUHPDUNDEOH
OLYHV
-81$0
$SDJH3')UHSRUWIURPPHFDOOHG7KH/DWHUDO$FWLRQ
*XLGHWR6WDUWLQJD6PDUW%XVLQHVV
+RZWR+DYHD*UHDW/LIHDQGD*UHDW%XVLQHVVLVDPXVWUHDGLI\RX¶UH
WKLQNLQJWKURXJKVWDUWLQJDEXVLQHVV

%86,1(6623325781,7,(6:(%/2* )URP%XVLQHVV2SSRUWXQLWLHV:HEORJ
%X\LQJDQG6HOOLQJ:HEVLWHVRQ
)OLSSD
-8130
%86,1(6623325781,7,(6:(%/2*
(QWUHSUHQHXURI$ZDUG
-8130
7KHGHDGOLQHIRU(QWUHSUHQHXU0DJD]LQH¶V(QWUHSUHQHXURI$ZDUG
LVIDVWDSSURDFKLQJ
,I\RXPHHWWKHTXDOLILFDWLRQVEHORZ\RX¶GEHWWHUKXUU\EHFDXVH\RXRQO\
KDYHXQWLO-XQHWRHQWHU
(QWUDQWVPXVWKDYHJURVVVDOHVRIDWOHDVW
7KHUHDUHPDQ\VLWHVWREX\DQGVHOOH[LVWLQJZHEVLWHVRQOLQH0\FXUUHQW RZQDWOHDVWRIWKHEXVLQHVVDQGPHHWWKHPLQLPXP
IDYRULWHLV)OLSSDFRP)OLSSDLVDQRQOLQHDXFWLRQKRXVHOLNHH%D\IRU DQGRUPD[LPXPQXPEHURI\HDUVLQEXVLQHVVDQGHPSOR\HH
WKHLQGLYLGXDOVDOHRIZHEVLWHVDQGGRPDLQQDPHV VL]HUHTXLUHPHQWV
%X\LQJDSUHEXLOWZHEVLWHFDQEHDJRRGZD\WRVXSSOHPHQW\RXURQOLQH ,I\RX¶UHVWLOOLQFROOHJHWKHUH¶VDOVRDFROOHJHFRQWHVW
HDUQLQJVEXWEHIRUH\RXEX\DZHEVLWHNHHSWKHIROORZLQJWLSVIURP-RKQ
&KRZLQPLQG 7RTXDOLI\HQWUDQWVPXVWEHDWOHDVWEXWOHVVWKDQ\HDUV
ROGDQGEHFXUUHQWO\HQUROOHGLQDWOHDVWHLJKWFRXUVHXQLWV
:LOO<RX$FWXDOO\0DNH:KDW7KH\6D\<RX¶OO0DNH DWDQDFFUHGLWHGFROOHJHRUXQLYHUVLW\DWWKHWLPHRIWKHLU
VXEPLVVLRQ
'RQ¶WEHDQHZELHDQGJHWDOOGUHDP\DERXWVLWHVWKDWPDNHD
JRRGDPRXQWRIPRQWKO\LQFRPH7KH\PLJKWKDYHWKHVWDWV
WREDFNXS3$67HDUQLQJVEXWKRZVXUHFDQ\RXEHWKDW\RX
ZLOOPDNHWKDWPXFK"%HVXUHWRUHDGZKHUHWKHSDVWWUDIILF )URP%XVLQHVV2SSRUWXQLWLHV:HEORJ
ZDVFRPLQJIURP,ILWFDPHIURPSULYDWHHPDLOQHZVOHWWHU
EODVWV\RXRIFRXUVHZRQ¶WKDYHDFFHVVWRWKDW6RP\WLSLVWR
PDNHVXUHWKDWWKHPDMRULW\RIWKHWUDIILFLVFRPLQJIURPWKH
UHVXOWVRI6(2RSWLPL]DWLRQDQGEDFNOLQNV
:K\$UH7KH\6HOOLQJ,W"
%HIRUH\RXGRDOO\RXUZKRZKDWZKHUHZKHQ\RXQHHGWR
XQGHUVWDQGWKHZK\:K\LVWKLVVHOOHUZLOOLQJWROHWJRRI
WKHLUZHEVLWH",ILW¶VDFRPSOHWHO\QHZZHEVLWHWKDW\RX¶UH
EX\LQJIRUFKHDSWKHQLW¶VSUREDEO\EHFDXVH\RX¶UHEX\LQJD
MXPSVWDUWVLWHWKDW¶VDOUHDG\PDGHEXWQRZLW¶V\RXUMREWR
EXLOGWUDIILFDQGPDLQWDLQLW:KHQLWFRPHVWRWKHVLWHVWKDW
DUHDOUHDG\PDNLQJPRQH\WKLVTXHVWLRQUHDOO\FRPHVLQWR
SOD\:K\ZRXOGVRPHRQHEHZLOOLQJWROHWJRRID
FRPIRUWDEOHDQGSDVVLYHSURILWVWUHDP"

%86,1(6623325781,7,(6:(%/2*
,QDFFXUDWH.QRFN2II7R\V
-8130
)RUHLJQNQRFNRIIVRI$PHULFDQWR\VRIWHQZLQGXSLQDGYHUWHQWO\
SDURG\LQJWKHP7KHORZSURGXFWLRQYDOXHRID]RPELHHVTXHDFWLRQ
ILJXUHDQGKLODULRXVW\SRVUHVXOWLQJIURPSRRUWUDQVODWLRQFDQDOPRVW
PDNHDWR\PRUHHQWHUWDLQLQJWKDQWKHUHDOYHUVLRQ
+HUHDUHDIHZWR\V8UOHVTXHFRPFROOHFWHG
µ%HQLJQ*LUO¶LQVWHDGRI%DUELH1RKRQH\\RXUGROOGRHVQ¶WKDYHD
WXPRU
µ6SDGHU0DQ¶LQVWHDGRI6SLGHU0DQ,ZRQGHULIDFWRU-DPHV6SDGHU
ZDVLQYROYHG"
µ5REHUW&RS¶LQVWHDGRI5RER&RS+LVIULHQGVFDOOKLP%RE
3KRWRVE\)OLFNU(SLF$ZHVRPHFRP%RRWOHJ$FWLRQ)LJXUHVFRP
µ6SHFLDO0DQ¶LQVWHDGRI6XSHUPDQ:HOOKH,6VSHFLDO

%86,1(6623325781,7,(6:(%/2*
,QVWDQW6WRUH-XVW$GG
&XVWRPHUV %86,1(6623325781,7,(6:(%/2*
-8130
$UH<RX$IUDLGRI6RFLDO0HGLD"
-8130
7KHIROORZLQJLVDJXHVWSRVWIURPDXWKRUDQGPDUNHWLQJVSHFLDOLVW
0LFKDHO&DUQH\
9HQGUVHDPOHVVO\DGGVVWRUHIURQWFDSDELOLWLHVWRDQ\ZHEVLWHRUEORJZLWK
MXVWDIHZOLQHVRIFRGH
,WGRHVWKDWE\DGGLQJD³6WRUHÉXWWRQZKHQFOLFNHGLWGLPV
WKHEDFNJURXQGSDJHDQGRYHUOD\VDEULJKWO\OLWVWRUHWKDW
SURYLGHVFXVWRPHUVZLWKDQHQJDJLQJDQGIOXLGVKRSSLQJ 6RFLDO0HGLDLVWKHKRWWHVWWRSLFLQPDUNHWLQJFLUFOHVULJKWQRZDQGPDQ\
H[SHULHQFH EXVLQHVVHVDUHIHHOLQJSUHVVXUHGWRJHWLQYROYHGZLWKVRFLDORXWOHWVVXFK
DV)DFHERRN0\6SDFHRU7ZLWWHU6PDOOZRQGHU²H0DUNHWHULV
%RWKSK\VLFDODQGGLJLWDOJRRGVFDQEHVROGWKURXJK9HQGU UHSRUWLQJWKDWVRFLDOPHGLDKDVUHDFKHGWKHWLSSLQJSRLQWZLWKPRUH
VWRUHVZKLFKDUHLQWHJUDWHGZLWKERWK3D\SDODQG*RRJOH WKDQKDOIRIDOO86LQWHUQHWXVHUVQRZIUHTXHQWLQJVRFLDOVSDFHVLQD
&KHFNRXW W\SLFDOPRQWK
0XOWLSOHSKRWRVFDQUHIOHFWWKHRSWLRQVFXVWRPHUVFKRRVH 6RDWOHDVWKDOIRIXVFDQQRZEHIRXQGKDQJLQJRXWRQVRFLDOQHWZRUNV
DQGDFHQWUDOGDVKERDUGJLYHVRZQHUVDYLHZRIDOOVWRUH 6KRXOGPDUNHWHUVEHWKHUHWRR"$EVROXWHO\QRWHVH0DUNHWHUFKDQQHOLQJ
DFWLYLWLHV,QYHQWRU\PDQDJHPHQWRSWLRQVDUHDYDLODEOHDVDUH WKHUHVXOWVRID)HEUXDU\VXUYH\E\&KDGZLFN0DUWLQ%DLOH\D
DOHUWVZKHQDSDUWLFXODUSURGXFWUXQVORZ PDUNHWUHVHDUFKILUP$FFRUGLQJWRWKHLUGDWDRI86)DFHERRN
XVHUVKDYHEHFRPHIDQVRIEUDQGVRQWKHQHWZRUN
9HQGUXVHUVFDQDOVRFUHDWHFRXSRQVIRUVWRUHZLGHFDWHJRU\
RUVSHFLILFSURGXFWXVHZLWKRSWLRQVIRUH[SLUDWLRQGDWHVRU $QGSOHQW\PRUHVRFLDOQHWZRUNXVHUVDUHWDONLQJDERXWEUDQGVRQOLQH
RWKHUUHVWULFWLRQV :KHWKHULW¶VJRRGQHZVRUEDGQHZVLILW¶VKRWLWVSUHDGVLQPLOOLVHFRQGV
DFURVVWKHVRFLDOQHWZRUNV
7KHFUHDWLRQRI&DOLIRUQLDEDVHG%R[DGRU9HQGULVSULFHG
UDQJLQJIURPIUHHIRUXSWRILYHSURGXFWVWR86'SHU $QXQIRUWXQDWHH[DPSOH"2Q6HSWHPEHU.UDIW$XVWUDOLD
PRQWKRU86'SHU\HDUIRUXSWRSURGXFWV ODXQFKHGLWVJORULRXVQHZOLQHH[WHQVLRQWRWKHLFRQLF$XVWUDOLDQ
DGGLWLRQDOSURGXFWSDFNVDUHDOVRDYDLODEOH 9HJHPLWHEUDQG9HJHPLWHL6QDFNZDVODXQFKHGLQWKHTXDUWHUWLPH
FRPPHULFDORIWKH$XVWUDOLDQ)RRWEDOO/HDJXH*UDQG)LQDOURXJKO\
3KRWRE\9HQGU HTXLYDOHQWWRWKH6XSHUERZOLQWHUPVRIQDWLRQDOVSRUWLQJLPSRUWDQFH
GRZQXQGHU
%HIRUHWKHFRPPHUFLDOZDVHYHQRYHUWZHHWVRIGHDWKZHUHUHVRXQGLQJ
)URP%XVLQHVV2SSRUWXQLWLHV:HEORJ DFURVV$XVWUDOLDDQGWKHQFHDFURVVWKHZRUOG

129HJHPLWHFUHDPFKHHVHSURGXFW&$11273266,%/<EH $OSKDJUDSKLFVDIUDQFKLVH
FDOOHG³9HJHPLWHL6QDFN´%DGMRNHRUPRVWHSLF)$,/LQ
)0&*EUDQGLQJKLVWRU\>WZHHWHGE\GRZQHV\@ $Q\WLPH)LWQHVVDIUDQFKLVH
2QWKHUDWKHUPRUHSRVLWLYHVLGHDUHFHQW1LHOVHQ)DFHERRNMRLQWVWXG\ $UERQQH,QWHUQDWLRQDODEXVLQHVVRSSRUWXQLW\
VKRZHGVLJQLILFDQWXSOLIWLQ$GYHUWLVLQJ5HFDOO$ZDUHQHVVDQG3XUFKDVH
,QWHQWDPRQJVWWKRVHEUDQGV³OLNHG´LQ6RFLDO0HGLD $UE\¶VDIUDQFKLVH
1HUYRXV\HW":RUULHGDERXW\RXUEUDQG"2UMXVWHDJHUWRWDNH %DJXHWWH([SUHVVDIUDQFKLVH
DGYDQWDJHRIWKHDGGHGYDOXHLIIDQVµORYH\RX¶VRFLDOO\"
%DNHUV'HOLJKWDIUDQFKLVH
,W¶VWLPHWRXSVNLOO\RXUVHOIRQVRFLDOPHGLD²LW¶VWRRODWHWREHDQHDUO\
DGRSWHUEXWQRZZRXOGEHDJRRGWLPHWRVWDUWJHWWLQJ\RXUVHOIVRFLDOO\ %DVNLQ5REELQVDIUDQFKLVH
DGHSW
%DWWHULHV3OXVDIUDQFKLVH
)RUPDQ\PDUNHWHUVKRZHYHUWKHVRFLDOPHGLDVSDFHLVIUDXJKWZLWK
GDQJHU5HFHQWVWXGLHVKDYHVKRZQWKDWPDUNHWHUVKDYHWKUHHEDVLFIHDUV %HQMDPLQ)UDQNOLQ3OXPELQJDIUDQFKLVH
DERXWVRFLDOPHGLD²DQGWKRVHIHDUVFDQEHFULSSOLQJRQDSURIHVVLRQDO
OHYHOLIQRWSHUVRQDOO\LIWKHULJKWDFWLRQVDUHQ¶WWDNHQWRGHDOZLWKWKH %RMDQJOHVDIUDQFKLVH
SUREOHPV
%RRN.HHSLQJ([SUHVVDIUDQFKLVH
,¶YHSXWWRJHWKHUDQHERRNRQ0DUNHWHUV¶)HDUV$ERXW6RFLDO0HGLDDQG
KRZWRRYHUFRPHWKHPEDVHGRQWKH6RFLDO0HGLD0DUNHWLQJFRXUVH,¶YH %XIIDOR:LOG:LQJVDIUDQFKLVH
EHHQUXQQLQJIRUWKHSDVWIHZPRQWKV
%XLOG$%HDU:RUNVKRSDIUDQFKLVH
,WLVDYDLODEOHWRGRZQORDGIRUIUHHIURPZZZ0DUNHWHUV)HDUVFRP
%XVLQHVV.QRZ+RZDIUDQFKLVH
&DIH<XPPDIUDQFKLVH
&DUO¶V-UDIUDQFKLVH
&KHPGU\&DUSHW 8SKROVWHU\&OHDQLQJDIUDQFKLVH
&KRLFH+RWHOV,QWHUQDWLRQDODIUDQFKLVH
%86,1(6623325781,7,(6:(%/2*
&LFL¶V3L]]DDIUDQFKLVH
,QWKH'LUHFWRU\7KLV:HHN
-8130 &RPSXWHU;SORUHUVDIUDQFKLVH
&RYHUDOO&OHDQLQJ&RQFHSWVDIUDQFKLVH
&XOYHU¶V%XWWHUEXUJHUV )UR]HQ&XVWDUGDIUDQFKLVH
'LFNH\¶V%DUEHFXH3LWDIUDQFKLVH
'RPLQR¶V3L]]DDIUDQFKLVH
2QHRIWKHRIWHQRYHUORRNHGVHFWLRQVRIWKLVZHEVLWHLVRXUGLUHFWRU\2YHU
GLIIHUHQWEL]RSVIUDQFKLVHVGHDOHUVKLSVDQGRQOLQHRSSRUWXQLWLHV 'XQNLQ¶'RQXWVDIUDQFKLVH
DUHOLVWHGWKHUH
(LQVWHLQ%URV%DJHOVDIUDQFKLVH
+HUHDUHFRPSDQLHVZH¶YHSRVWHGDERXWWKLVZHHN
(LQVWHLQ%URV%DJHOVDIUDQFKLVH
HOHYHQDIUDQFKLVH
(OHPHQWV7KHUDSHXWLF0DVVDJHDIUDQFKLVH

(QHUJ\.LWFKHQDIUDQFKLVH 0DVVDJH(QY\DIUDQFKLVH
(YRVDIUDQFKLVH 0DWKQDVLXPDIUDQFKLVH
)DQWDVWLF6DPVDIUDQFKLVH 0D[0XVFOHDIUDQFKLVH
)DVW6LJQVDIUDQFKLVH 0F'RQDOG¶VDIUDQFKLVH
)LUHKRXVH6XEVDIUDQFKLVH 0FDOLVWHU¶V'HOLDIUDQFKLVH
)LWQHVV7RJHWKHUDIUDQFKLVH 0U+DQG\PDQDIUDQFKLVH
)LYH6WDU3DLQWLQJDIUDQFKLVH 0XJJ %HDQDIUDQFKLVH
)OLS)ORS6KRSVDIUDQFKLVH 0\$ODUPDEXVLQHVVRSSRUWXQLW\
)UDQFRUSDIUDQFKLVH 0\$ODUPDGHDOHUVKLS
*ORULD-HDQ¶V&RIIHHDIUDQFKLVH 1DWLRQDO3URSHUW\,QVSHFWLRQVDIUDQFKLVH
*UHDW&OLSVDIUDQFKLVH 1RYXV$XWR*ODVVDIUDQFKLVH
*UHHWLQJ&DNH&RPSDQ\DEXVLQHVVRSSRUWXQLW\ 2IILFH3ULGH&RPP¶O&OHDQLQJDIUDQFKLVH
+HUEDOLIHDEXVLQHVVRSSRUWXQLW\ 2QH+RXU+HDWLQJ$QG$LU&RQGLWLRQLQJDIUDQFKLVH
+RPH+HOSHUVDIUDQFKLVH 3DFLXJR*HODWRDIUDQFKLVH
+RQHVW$XWR&DUHDIUDQFKLVH 3DQHUD%UHDGDIUDQFKLVH
+XGGOH+RXVHDIUDQFKLVH 3L]]D)XVLRQDIUDQFKLVH
+XUULFDQH*ULOO :LQJVDIUDQFKLVH 3L]]D+XWDIUDQFKLVH
,QWHULP+HDOWKFDUHDIUDQFKLVH 3L]]D,QQDIUDQFKLVH
-DFNLQWKH%R[DIUDQFKLVH 3RVWQHWDIUDQFKLVH
-D]]HUFLVHDIUDQFKLVH 3UR(QHUJ\&RQVXOWDQWVDIUDQFKLVH
-LII\/XEHDIUDQFKLVH 3URWHFW3DLQWHUVDIUDQFKLVH
.)&DIUDQFKLVH 4GRED0H[LFDQ*ULOODIUDQFKLVH
/LEHUW\7D[DIUDQFKLVH 5HDOW\([HFXWLYHV,QWHUQDWLRQDODIUDQFKLVH
/LEHUW\7D[6HUYLFHDIUDQFKLVH 5K\WKP7LPHDIUDQFKLVH
/LWWOH&DHVDUVDIUDQFKLVH 6DODGZRUNVDIUDQFKLVH
0DUEOH6ODEDIUDQFKLVH 6LUORLQ6WRFNDGHDIUDQFKLVH
0DUFR¶V3L]]DDIUDQFKLVH 6QDS)LWQHVVDIUDQFKLVH
0DU\.D\&RVPHWLFVDEXVLQHVVRSSRUWXQLW\ 6SLF\3LFNOHDIUDQFKLVH

6SRUW&OLSVDIUDQFKLVH %86,1(6623325781,7,(6:(%/2*
6SXGEDUDIUDQFKLVH )DVKLRQ)RU&XUY\*LUOV
-8130
6WHYL%¶V3L]]DDIUDQFKLVH
6XEZD\5HVWDXUDQWDIUDQFKLVH
6\OYDQ/HDUQLQJDIUDQFKLVH
7DFR%HOODIUDQFKLVH
7DFR'HO0DUDIUDQFKLVH
7KH$WKOHWH¶V)RRWDIUDQFKLVH
7LGH'U\&OHDQHUVDIUDQFKLVH
7KUHHZRUGVFDQEHVWGHVFULEH$QJHODDQG.DUHQ6DPXHOVDQGWKH
7ZR0HQ$QG$7UXFNDIUDQFKLVH EXVLQHVVWKH\UXQWRJHWKHU7KRVHZRUGVDUH6H[\%ROGHU<RXUHSRUWV
WKHVWDUFRP
86$1$+HDOWK6FLHQFHVDEXVLQHVVRSSRUWXQLW\
7KHZRUGVDUHGLVSOD\HGSURPLQHQWO\LQ9ROXSWXRXVDFKDLQ
:HQG\¶V2OG)DVKLRQHG+DPEXUJHUVDIUDQFKLVH RIVWRUHVLQ7RURQWRWKDWVHOOVWUHQG\IDVKLRQVLQVL]HVWR
DQGLVRZQHGDQGRSHUDWHGE\WKHVLVWHUV
:LQJVWRS5HVWDXUDQWDIUDQFKLVH
%XWZKDWVHWVWKHIRXU9ROXSWXRXVVWRUHVDSDUWIURPRWKHU
:RRG5H1HZDIUDQFKLVH SXUYH\RUVRISOXVVL]HDSSDUHOLVWKHLUXQDEDVKHG
HQWKXVLDVWLFHPEUDFHRIIDVWIDVKLRQWUHQGVFXWIRUWKHFXUY\
=LSV'U\&OHDQHUVDIUDQFKLVH JLUO
=RRP5RRPDIUDQFKLVH 7KH-DPDLFDQERUQ6DPXHOVVLVWHUVVWDUWHGWKHFRPSDQ\
\HDUVDJRZLWKDVLQJOHVWRUH7RGD\WKH\FRPSDUHWKHLUIRXU
ORFDWLRQVLQ'XIIHULQ0DOO6FDUERURXJK7RZQ&HQWUH
6TXDUH2QHDQG9DXJKDQ0LOOVWRVXSHUWUHQG\IDYRXULWHV
)URP%XVLQHVV2SSRUWXQLWLHV:HEORJ OLNH&RVWD%ODQFDWKHFORWKHVDUHFKHDSDQGFKHHUIXOEXW
FXUYDFHRXV
³7UDGLWLRQDOO\SOXVVL]HZDVQRWWUHQG\´VD\V$QJHOD
ZKRLVDVWDWXHVTXHVL]HDQGDIRUPHUSOXVVL]HPRGHO³%XW
ZHZDQWJLUOVLQKLJKVFKRROWRORRNOLNHWKHLUSHHUV:HZDQW
ZRPHQMXVWHQWHULQJWKHZRUNIRUFHWRORRNOLNHWKHLUFR
ZRUNHUV:HZDQWZRPHQZKRZDQWWRJRWRFOXEVWRORRNOLNH
WKHRWKHUJLUOVDWWKHFOXEV
³,DOZD\VIHOWWKDWEHLQJSOXVVL]H\RX¶UHJRLQJWRVWDQGRXW
DQ\ZD\6RLI\RX¶UHJRLQJWREHVHHQ,ZDQW\RXWREHVHHQLQ
DQLFHOLJKW´
3KRWRIURP9ROXPSWXRXV

%86,1(6623325781,7,(6:(%/2*
0DNLQJ$%XFN2II7KH3UH]
-8130
3UHVLGHQWLDO0DQLFXUHV
7KHGURSGHDGJRUJHRXVSRSVLQJHU5LKDQQDMRLQHGWKHOHJLRQVRI
3UHVLGHQW2EDPDDGPLUHUVZKRKDYHHPEOD]RQHGWKH3UH]¶VLPDJHRQ
VRPHSDUWRIWKHLUERG\7KH\HDUROGVLQJHU¶VFKRLFHWRH[SUHVVKHU
DOOHJLDQFHZDVWRKDYH2EDPD¶VIDFHFOHDUO\SDLQWHGRQRQHRIKHU
ILQJHUQDLOV5LKDQQDKDGDPLQLUHSOLFDRI6KHSDUG)DLUH\¶VQRZIDPRXV
$FFLGHQWDO$G&DPSDLJQ
SRUWUDLWRI3UHVLGHQW2EDPDSHUIHFWO\PDQLFXUHGRQKHUSLQN\IURP
:HDWKHUSURRIIRXQGDYHLQRIJROGLQWKHGHFLVLRQRI2EDPDWRXVHD
WDOHQWHGDUWLVDQVDW0LQ[1DLOV
MDFNHWRIWKHILUPGXULQJLWVUHFHQWWULSWR&KLQDWKLVSDVW1RYHPEHUDQG
SODFHGWKHDGLQDKLJKO\YLVLEOHSODFH%DUDFN2EDPDLVVHHQGUHVVHGLQD
EODFNMDFNHWZLWKKDQGVLQWKHSRFNHWVPLOLQJZLWKWKH&KLQHVH:DOODV
EDFNGURS
3UHVLGHQWLDO+RPH'HFRU
)URPZDOOGHFDOVWR5XVVLDQQHVWLQJGROOVEULQJLQJ2EDPDKRPHZLWK
\RXLVQRSUREOHPWKDQNVWRDUDQJHRISDWULRWLFGHVLJQHUV2QOLQHDQGLQ
&KLDREDPD VWRUHV2EDPDKRXVHKROGRUQDPHQWVDUHSOHQWLIXODQGUDQJHIURP
5HJXODU&KLD3HWVDUHVRODVWGHFDGHEXWDQ2EDPD&KLD"1RZWKDW¶VKLS EL]DUUHOLWWOH2EDPD&KLDSHWVWR2EDPDSDSHUWRZHOKROGHUV
IRUWKHWLPHV
7KH2EDPD&KLDSHWJURZVDQLFHJUHHQOLWWOHEXVKHORIµKDLU¶FRQVLVWLQJ 3KRWRVE\7UHQG+XQWHU
RISODQWVJURZQE\\RXLQMXVWZHHNV7KH2EDPDILJXULQHFRPHVLQ
+DSS\DQG'HWHUPLQHGH[SUHVVLRQVWRVXLWWKHPRRGRI\RXUKRPH

%86,1(6623325781,7,(6:(%/2* %86,1(6623325781,7,(6:(%/2*
1HZ%L]RS&ODVVLILHG$GV7KLV :KDW<RX&DQ/HDUQIURP
:HHN 6PDOO%XVLQHVVHV6XFFHVV
-8130
6WRULHV
-8130
1HZOLVWLQJWKLVZHHNRQWKH%XVLQHVV2SSRUWXQLWLHV:HEORJ&ODVVLILHGV
'YGQRZ.LRVNV±'YG5HQWDO%XVLQHVV2SSRUWXQLW\
$OZD\V:DQWHG7R%H2Q7KH*URXQG)ORRU"
$Q&RPSOHWH(GXWDLQPHQW%XVLQHVV)RU.LGV±8QGHU 7KHUHLVQRWEXOOHWSURRIUHFLSHWRODXQFKLQJDVXFFHVVIXOEXVLQHVV/XFN
IODLUSHUVLVWHQFHDQGGULYHDUHVRPHRIWKHPDQ\IDFWRUVWKDWZLOOPDNH±
<RX(DUQ&RPPLVVLRQ3HU6DOH RUEUHDNDVWDUWXS%XWZKLOHWKHUHLVQREOXHSULQWRQHQWUHSUHQHXUVKLS
KLVWRU\KDVWDXJKWXVWKDW\RXFDQQRWPDNHLWZLWKRXWWKHIDFWRUVOLVWHG
'LUHFW6DOHV3URIHVVLRQDOV,QFUHDVH<RXU5HIHUUDOV:LWK0\ EHORZ7KHVHUXOHVDUHQRWWDNHQIURPPDUNHWLQJERRNVWKH\KDYHEHHQ
3URGXFW WULHGDQGWHVWHGE\VXFFHVVIXOHQWUHSUHQHXUV6HHZKDW\RXFDQOHDUQ
IURPWKHP
&RPPLVVLRQ3HU6DOH
)LQG\RXUQLFKH
1HZ&RPSDQ\/RRNLQJ)RU/HDGHUV
:KRZRXOGKDYHWKRXJKWWKDWWKHUHZRXOGEHDPDUNHWIRUDPDLORUGHU
1HZ7R$IILOLDWH0DUNHWLQJ"2YHUZKHOPHG$QG1RW6XUH:KHUH7R EXVLQHVVVHOOLQJFDUQLYRURXVSODQWV"3HWHUG®$PDWRWUDQVIRUPHGKLV
6WDUW" OLIHORQJLQWHUHVWLQKXQJU\SRWWHGSODQWVLQWRDVXFFHVVIXOUHWDLO
RSHUDWLRQ)LQGRXWKRZKHGLGLW
(DUQ&RPPLVVLRQ)RU(YHU\6DOH
+DYHDVROLGEXVLQHVVSODQ
:DQWWRJHW\RXUEL]RSSURJUDPSURGXFWRUDQQRXQFHPHQWRXWWRRXU
YHU\WDUJHWHGUHDGHUV"&UHDWHDFODVVLILHGDGWRGD\IRURQO\ 1HZDJHWKLQNLQJZRXOGKDYH\RXEHOLHYHWKDW\RXFDQODXQFKDEXVLQHVV
ZLWKRXWDEXVLQHVVSODQLGHQWLI\LQJDQGVHL]LQJRSSRUWXQLWLHVDORQJWKH
ZD\:KLOHWKDWVWUDWHJ\PD\ZRUNIRUVRPHOXFN\IHZWKHWUXWKLVWKDWD
EXVLQHVVSODQZLOOKHOS\RXVHFXUHWKDWPXFKQHHGHGVHHGLQYHVWPHQW
)URP%XVLQHVV2SSRUWXQLWLHV:HEORJ :LWKDFOHDUUHYHQXHVWUDWHJ\-DPLH0LOQHUDQG0DWWKHZ7XUQHU
IRXQGHUVRI7DVWH/RQGRQVHFXUHGDEDQNORDQ5HDGPRUH
6WD\FRPPLWWHG
:KHQODXQFKLQJ\RXUVWDUWXS\RXZLOORYHUFRPHPDQ\KXUGOHVODFNRI
ILQDQFLQJODFNRIVWDIIVFDUHUHVRXUFHV%XVLQHVVHVWKDWKDYHIDLOHGDUH
PRUHWRRRIWHQEXVLQHVVHVWKDWKDYHJLYHQXSWRRVRRQ&RPPLWWR
VROYLQJWKHSUREOHPVDVWKH\FRPHDQG\RXZLOOFRPHWKURXJKÑ´'HFLGH

WKDWWKHUHLVDOZD\VDZD\´6KDZ1HOVRQIRXQGRIORYHVDFFRPVD\V
³DQG\RX¶OOILQGWKDWWKHUHLV´5HDGKLVLQVSLUDWLRQDOVWRU\
*RILQG\RXUFXVWRPHUV
0DQ\EXVLQHVVHVIDLOEHFDXVHWKH\FDQQRWILQGFXVWRPHUV7KHDGYHQWRI
VRFLDOQHWZRUNLQJZHEVLWHVKDVPDGHLWHDVLHUWRGD\WRFRQQHFWZLWK
SURVSHFWVDQGFXVWRPHUV7KLVUHODWLRQVKLSVKRXOGQRWEHUHVWULFWHGWR
WKHZHE2OG±IDVKLRQHGPHWKRGVVXFKDVH[KLELWLQJ\RXUSURGXFWVLQ
IDLUVH[KLELWLRQVDQGFRQIHUHQFHVZRUNDVGHPRQVWUDWHGE\WKLV
LQFUHGLEOHVWRU\RID\RXQJ$PLVKHQWUHSUHQHXUZKREXLOWDQDWLRQDOIRRG
UHWDLOLQJEXVLQHVVZLWKRXWXVLQJQHZWHFKQRORJLHV)LQGRXWKRZKHGLG
LW
1HWZRUNQHWZRUNQHWZRUN
$VDQHQWUHSUHQHXU\RXUIRFXVVKRXOGEHRQJHQHUDWLQJOHDGVDQGVDOHV )LIWHHQ\HDUROG&KULVWLDQ2ZHQVIRXQGHURIRQOLQHDGYHUWLVLQJQHWZRUN
3HRSOHGREXVLQHVVZLWKSHRSOHWKH\NQRZDQGOLNHVR\RXZLOOQHHGWRJHW %UDQFKUZDVUHFHQWO\QDPHG(QWHUSULVLQJ<RXQJ%ULW7KH'DLO\
\RXUQDPHRXWWKHUHPDNHFRQWDFWVDQGEXLOGUHODWLRQVKLSV$QGUHZ 0DLOJLYHVWKHDQQXDODZDUGWRWHHQW\FRRQVZLWKVWDUWXSVLQWKH8QLWHG
5DQGDOOIRXQGHURIWK+RXU0DUNHWLQJDWWHQGVIRXUQHWZRUNLQJHYHQWV .LQJGRPUHSRUWV9HQWXUH%HDW
DZHHN)LQGRXWKRZLWKDVSDLGRII
2ZHQVIRXQGHGWKHVWDUWXSZKLFKFRXQWV0\6SDFHDVD
7KLVZDVDJXHVWSRVWE\,&/3ZKLFKSURYLGHVFXVWRPHUOR\DOW\ SXEOLVKHU²WRJLYH\RXDVHQVHRIWKHSUHVWLJH²LQ-DQXDU\
VROXWLRQVWRKHOSEXVLQHVVHVFUHDWHUHWDLQ JURZSURILWDEOH 7KHFRPSDQ\SURYLGHVVPDOODQGPHGLXPVL]HG
UHODWLRQVKLSV EXVLQHVVHVZLWKDQDOWHUQDWLYHWR*RRJOHWKURXJKLWVSD\SHU
FOLFNDGYHUWLVLQJSODWIRUP
7KHLQWHUQDWLRQDOFRPSDQ\DOVRERDVWVWHHQH[HFVLQWKH
)URP%XVLQHVV2SSRUWXQLWLHV:HEORJ 8QLWHG6WDWHVLQFOXGLQJ\HDUROG0DUN%DRRI%RVWRQ
$FFRUGLQJWR%DRDVHOIGHVFULEHG³WHFKQRORJ\HQWUHSUHQHXU
DQGQRQSURILWIRXQGHUDQGDGYRFDWH´WKHFRPSDQ\VHUYHV
DGVRQRQOLQHSURSHUWLHV:KLOH%UDQFKULVSURILWDEOH
%DRVDLGWKHWHDPLVWKLQNLQJDERXWYHQWXUHIXQGLQJ³RYHUWKH
SRQGLQ/RQGRQ´
%86,1(6623325781,7,(6:(%/2*
3KRWRE\%UDQFKU
7HHQ)RXQGV3URILWDEOH$G
1HWZRUN
-8130 )URP%XVLQHVV2SSRUWXQLWLHV:HEORJ

%86,1(6623325781,7,(6:(%/2* %86,1(6623325781,7,(6:(%/2*
%UHZLQJ6RPHWKLQJ%ROG 3HSVL+LGHV9LGHR,Q%DUFRGHV
-8130 -8130
7KH)ORULGD7LPHV8QLRQ
:KHQ6XVDQ0LOOHUULVNHGHYHU\WKLQJWRKHOSKHUVRQODXQFK
%ROG&LW\%UHZHU\IURPWKHJURXQGXSLQ-DFNVRQYLOOHVKH
DGPLWVVKHGLGQ¶WHYHQNQRZLIKLVEHHUZDVDQ\JRRG
6KHWRRNDELJULVNZKHQVKHTXLWKHUMREDQGKHOSHGILQDQFH
KHUVRQ¶VGUHDPKHUH,WZDVQ¶WRXWRIDVHQVHRIPRWKHUO\
GXW\RUHYHQEHFDXVHVKHVKDUHGWKHVDPHYLVLRQ 9HQWXUH%HDWUHSRUWVWKDEHYHUDJHJLDQW3HSVLDQQRXQFHGDQHZ
H[SHULPHQWDURXQGEDUFRGHVLQFROODERUDWLRQZLWKDVWDUWXSFDOOHG
6RZK\¶GVKHWDNHWKHOHDS" 6WLFN\ELWV
%HFDXVHVKHNQHZKHUVRQEHWWHUWKDQDQ\ERG\DQGWKHULVN 8VLQJDEDUFRGHUHDGHUDSSOLFDWLRQRQDVPDUWSKRQHXVHUV
GLGQ¶WVHHPVRELJZKHQVKHFRQVLGHUHGKLVOLNHOLKRRGIRU FDQVFDQEDUFRGHVRQ3HSVLSURGXFWVOLNHVRGDFDQVRUERWWOHV
VXFFHVV DQGDFFHVVYLGHRVDQGOLQNVKLGGHQLQWKHFRGH8VHUVFDQDOVR
XSORDGWKHLURZQYLGHRVSKRWRVDQGFRPPHQWVDERXW3HSVL
³:HZRUNORQJKDUGKRXUV´6XVDQ0LOOHUVDLG³%XWLWLV DQGLWVSURGXFWV
ZRQGHUIXO,DPVRSURXGRIKLPDQGZKDWKH¶VEHHQDEOHWR
GR´ $OORIWKLVLVSRZHUHGE\6WLFN\ELWVZKLFKVSHFLDOL]HVLQ
WDJJLQJEDUFRGHVZLWKLQIRUPDWLRQDQGDFFHVVLQJLW
0RWKHUDQGVRQNQHZWKDWJRLQJLQWREXVLQHVVWRJHWKHUZRXOG 6WLFN\ELWV¶SURGXFWDOORZVSHRSOHQRWRQO\WRDFFHVV
PDNHRUEUHDNWKH0LOOHUFODQ7KHNH\WKH\VD\ZDV LQIRUPDWLRQWKDWLVDOUHDG\SURJUDPPHGLQDEDUFRGHEXW
VHSDUDWLQJWKH%ULDQDQG6XVDQEXVLQHVVUHODWLRQVKLSIURP DGGPRUHLQIRUPDWLRQWRLWE\XSORDGLQJDYLGHRRUSKRWRWR
WKHPRWKHUDQGVRQUHODWLRQVKLS WKHEDUFRGHIRURWKHUXVHUVWRVHH
2XWVLGHHDUVKRWRIRQHDQRWKHUWKH\GHVFULEHHDFKRWKHULQ 3HSVLWKLQNVWKH6WLFN\ELWVSLORWLVDZD\RISURYLGLQJ
UHPDUNDEO\VLPLODUZD\V%RWKVD\WKDWOD\LQJGRZQJURXQG FRQVXPHUVLQIRUPDWLRQWKH\PLJKWZDQWZKLOHRIIHULQJDWZR
UXOHVRQZKRPDNHVZKDWGHFLVLRQVKDVKHOSHGNHHSWKH ZD\FRPPXQLFDWLRQFKDQQHODQGFRXOGFRQFHLYDEO\EHD
SHDFH7KH\ERWKVD\%ULDQVHHVWKHEODFNDQGZKLWH YHKLFOHIRUGHOLYHULQJVSHFLDOGHDOVRUFRXSRQVRU
QHFHVVLWLHVRIEXVLQHVVDQG6XVDQIRUFHVKLPWRVHHWKHJUD\ SURPRWLRQDOUHZDUGV
QXDQFHV
3KRWRE\3HSVL
6FUHHQVKRWIURP%ROG&LW\%UHZHU\

%86,1(6623325781,7,(6:(%/2* :HEIRUEDNHULHVLQYHVWLQJ7KHSD\RIIWKHDXGLHQFH
IRUWKHQHZO\UHYDPSHGVLWHKDVGRXEOHG
7RROER[+HOSV6PDOO%L]
3KRWRIURP0DNH0\&DNH
2ZQHUV%RRVW2QOLQH3UHVHQFH
-8130
817(03/$7(5
*HQ-XLFH9LGHR,QWHUYLHZ+RZ
WREXLOGDWRXUZ$ULHOOH3DWULFH
6FRWW
-81$0
1DPH$ULHOOH3DWULFH6FRWW
7KH'DLO\1HZVVWDWHVWKDWORJJLQJRQWR0DNH0\&DNHFDQEHYHU\ &RPSDQ\*HQ-XLFH
GDQJHURXV 7ZLWWHUKWWSWZLWWHUFRPDULHOOHVFRWW
%ORJKWWSWKHDULHOOHFRPEORJ
2QHORRNDWWKHSKRWRVRQWKLV:HEVLWH²FXSFDNHVGULSSLQJ
LQEXWWHUFUHDPIURVWLQJDQGIOXII\FKHHVHFDNHWRSSHGZLWK 7RGD\ZHKDYH$ULHOOH3DWULFH6FRWWZKRLVDQDPD]LQJ\RXQJ
FUHDPFKHHVHIURVWLQJVZLUOV²FRXOGPDNH\RXGURS HQWUHSUHQHXUDQGWKH&R)RXQGHURI*HQ-XLFH7KH*HQ-XLFHWHDPKDV
HYHU\WKLQJDQGUXVKRIIWRRQHRIWZR0DNH0\&DNHEDNHULHV FUHDWHGDFLW\QDWLRQWRXUWKDWEULQJVWRJHWKHUWKHVPDUWHVW\RXQJ
LQ+DUOHP PLQGVLQWKH867KHLUJRDOLVWRSURYLGHWKHYHQXHIRUOLNHPLQGHG
SHRSOHWRPHHWHDFKRWKHUVKDUHLGHDVDQGEHQHILWIURPNQRZLQJHDFK
$QGWKDWZRXOGEHMXVWILQHZLWK$OL\\DK%D\ORUFRRZQHURI RWKHU
0DNH0\&DNHZKRNQRZVWKHYDOXHRIDZHOOGHVLJQHG:HE
VLWHDQGZDQWVWRVKDUHKHULQVLJKWZLWKRWKHUVPDOOEXVLQHVV ,QWKLVYLGHRLQWHUYLHZ,GLYHLQWRGHWDLOZLWK$ULHOOHDERXWKRZVKHEXLOW
RZQHUV WKHWRXUIURPWKHYHU\EHJLQQLQJWRZKHUHVKHLVQRZWRGD\&KHFNRXW
WKHQDWLRQWRXUKHUHDQG,KRSHWRVHH\RXDWWKH6)HYHQW
%D\ORULVRQHRIQLQHHQWUHSUHQHXUVVKRZFDVHGRQ7RROVIRU
2QOLQH6XFFHVVDQHZRQOLQHSDUWQHUVKLSEHWZHHQWKH86
6PDOO%XVLQHVV$GPLQLVWUDWLRQDQG*RRJOHWKDWSURYLGHVIUHH
HGXFDWLRQDQGDGYLFHRQKRZVPDOOEXVLQHVVHVFDQXVHWKH
,QWHUQHWWRJURZ
7KHVLWH*RRJOHFRPKHOSVEDLVDVWDUWLQJSRLQWIRU
HQWUHSUHQHXUVZKRPD\EHLQWLPLGDWHGE\WKHFRPSOH[LWLHVRI
WKH,QWHUQHWRUEHOLHYHXVLQJLWWROXUHQHZFXVWRPHUVZRXOG
EHWRRFRVWO\
%D\ORUZKRUXQVKHU\HDUROGILUPZLWKKHUPRP-R$QQ
%D\ORUGHFLGHGWRUHYDPSKHU:HEVLWHWREHWWHUVKRZFDVH
KHUSURGXFWVDVVKHSUHSDUHVWRODXQFKDPDLORUGHUEXVLQHVV
QH[WPRQWK
6KHKLUHGDFRQVXOWDQWODVW\HDUWRVFRSHRXWD:HEGHVLJQHU
DQGDSKRWRJUDSKHUH[SHULHQFHGLQSURGXFLQJLPDJHVIRUWKH

%86,1(6623325781,7,(6:(%/2*
1HZ<RUN7LPHV%DQV7KH
:RUG³7ZHHW´
-81$0
7KH6ODWHLVUHSRUWLQJWKDWWKH*UD\/DG\ZLOOQRORQJHUWZHHW7KDW¶V
DFFRUGLQJWRWKH1HZ<RUN7LPHV¶VWDQGDUGVHGLWRU3KLO&RUEHWWZKRLV
SOHDGLQJZLWKZULWHUVWRDYRLGXVLQJWKHZRUGLQWKHLUFRS\ZKHQHYHU
SRVVLEOHLQYRNLQJWKHSDSHU¶VGLVGDLQIRU³FROORTXLDOLVPVQHRORJLVPV
DQGMDUJRQ´
7KHUHDUHWZHHWSDUWLVDQV7KH$VVRFLDWHG3UHVVJDYHWZHHWLWV
EOHVVLQJLQWKHPRVWUHFHQWHGLWLRQRILWVVW\OHJXLGHDQGWKH
$PHULFDQ'LDOHFW6RFLHW\OLVWHGWZHHWDVLWV³ZRUGRIWKH\HDU´
IRUWKRXJKWKDWODEHOLVOHVVDQKRQRULILFWKDQD
UHIOHFWLRQRIZLGHVSUHDGXVH
&RUEHWWVXJJHVWVUHSODFLQJWZHHWZLWKFKLUS+HDOVRSURSRVHV
WKHIROORZLQJ³GHIW(QJOLVKDOWHUQDWLYHV´
XVH7ZLWWHUSRVWWRRURQ7ZLWWHUZULWHRQ7ZLWWHUD7ZLWWHU
PHVVDJHD7ZLWWHUXSGDWH2URQFH\RX¶YHHVWDEOLVKHGWKDW
7ZLWWHULVWKHPHGLXPVLPSO\XVH³VD\´RU³ZULWH´
3KRWRE\+RO\.DZ

-XQH
7RGD\·V7DEEORLG
'$01,:,6+,¶'7+28*+72)7+$7 <RXGHVHUYHEHWWHUWKDQWKHGDVKHGKRSHVRIDPDJLFORWWHU\
,I\RXZDQWWREHFRPHDYLUDO 7KHUH¶VDKDUGZRUNDOWHUQDWLYHWRWKHPDJLFORWWHU\RQHLQZKLFK\RX
FDQLQFUHPHQWDOO\OD\WKHJURXQGZRUNDQGLQWHJUDWHLQWRWKHV\VWHP\RX
VWDURQWKHODWHVWVRFLDOPHGLD VD\\RXZDQWWRZRUNZLWK$QG\HWLQVWHDGRIGRLQJWKDWZRUNRXU
LQVWLQFWLVWRGHPRQL]HWKHSHUVRQWKDWZDQWVWRWDNHDZD\RXUWLFNHWWR
SODWIRUP« FRQIXVHWKHPDWKRIWKHVLWXDWLRQWKHUHDUHYHU\IHZJODVVVOLSSHUV
-81$0 DYDLODEOHZLWKVRPHRQHWU\LQJWRVODPWKHGRRULQ\RXUIDLWKIDFH
«MXVWKDYHDOLWWOHIXQ:KLOHWKHUHDUHDUPLHVRIPDUNHWHUVWU\LQJWR <RXFDQHLWKHUZRUN\RXUVHOIWRSRLQWZKHUH\RXGRQ¶WQHHGWKHWUDQVRP
ILJXUHRXWKRZWRFDVKLQRQ&KDWURXOHWWH'U3HSSHUMXVWSXWWRJHWKHU RU\RXFDQSOD\DGLIIHUHQWJDPHDOWRJHWKHUEXWWKURZLQJ\RXUVWXIIRYHU
WKLVVLPSOHIXQVWXQWIRU$SULO)RROVGD\ WKHWUDQVRPLVQ¶WZRUWK\RIWKHZRUN\RX¶YHGRQHVRIDU
7KHELJOHVVRQKHUH6RFLDOPHGLDLVQRWDERXWDGYHUWLVLQJDQG 6WDUEXFNVGLGQ¶WEHFRPH6WDUEXFNVE\JHWWLQJGLVFRYHUHGE\2SUDK

DGYHUWLVLQJLQVRFLDOPHGLDLVRIWHQUXGHDQGLQWUXVLYH,QVWHDG²MXVW :LQIUH\RUEHLQJEOHVVHGE\:DUUHQ%XIIHWZKHQWKH\RQO\KDGDIHZ
SOD\DORQJKDYHIXQDQGEHDSDUWRIWKHFRPPXQLW\²ZLWKLQWKHVSLULW VWRUHV1RWKH\SOXJJHGDORQJ7KH\UDLVHGELWVRIPRQH\KHUHDQGWKHUH
DQGHWKLFVRIWKHFRPPXQLW\ IOLUWHGZLWKGLVDVWHUDGGHGRQHVWRUHDQGWKHQDQRWKHUWZHDNHGDQG
PHDVXUHGDQGLPSURYHGDQGUHSHDWHG'D\E\GD\WKH\GULSSHGWKHLU
ZD\WRVXFFHVV1RPDJLFORWWHU\
6KDUH
:KDWFKDQFHLVWKHUHWKDW0DUN&XEDQRU&DUORV6OLPLVJRLQJWRDJUHHWR
EH\RXUPHQWRUWRRSHQDOOGRRUVDQGJLYH\RXDVKRUWFXWWRWKHWRS"
%HWWHU,WKLQNWRDYRLGZDVWLQJDPRPHQWRI\RXUWLPHKRSLQJIRUDIDLU\
JRGPRWKHU<RX¶UHLQDKXUU\DQGWKLVLVDGHDGHQG
:KHQVRPHRQHHQFRXUDJHV\RXWRDYRLGWKHPDJLFORWWHU\WKH\¶UHQRW
6(7+¶6%/2* FULWLFL]LQJ\RXULGHDQRUDUHWKH\WU\LQJWRVKDWWHU\RXUIDLWKRUWDNHDZD\
\RXUKRSH,QVWHDGWKH\¶UHSRLQWLQJRXWWKDWVKRUWFXWVDUHUDUHO\
+RSHDQGWKHPDJLFORWWHU\ GHSHQGDEOHRUSDUWLFXODUO\VKRUWDQGWKDWLQVWHDGSHUKDSV\RXVKRXOG
-81$0 IROORZWKHORQJHUPRUHGHOLEHUDWHOHVVPDJLFDOSDWKLI\RXWUXO\ZDQWWR
VXFFHHG
(QWUHSUHQHXULDOKRSHLVHVVHQWLDO,WJHWVXVRYHUWKHKXPSDQGWKURXJK
WKHGLS7KHUH¶VDYDULHW\RIWKLVKRSHWKRXJKWKDW¶VIDUPRUHGDPDJLQJ ,I\RXUEXVLQHVVRU\RXUPXVLFRU\RXUDUWRU\RXUSURMHFWLVWUXO\ZRUWK
WKDQKHOSIXO \RXUHQHUJ\DQG\RXUSDVVLRQWKHQGRQ¶WVHOOLWVKRUWE\SXWWLQJLWVIXWXUH
LQWRDORWWHU\WLFNHW
7KLVLVWKHKRSHRIWKHPDJLFORWWHU\WLFNHW
+HUH¶VDQRWKHUZD\WRWKLQNDERXWLWGHOLJKWWKHDXGLHQFH\RXDOUHDG\
$IOHGJOLQJHQWUHSUHQHXUDPEXVKHVDYHQWXUHFDSLWDOLVWZKRMXVW KDYHDPD]HWKHFXVWRPHUV\RXFDQDOUHDG\UHDFKGD]]OHWKHVPDOO
DSSHDUHGRQDSDQHO³([FXVHPH´VKHVD\VWKHQODXQFKHVLQWRDWZR LQYHVWRUVZKRDOUHDG\WUXVW\RXHQRXJKWROLVWHQWR\RX7DNHWKH
WKHQVL[DQGHYHQWXDOO\WZHQW\PLQXWHSLWFKWKDWZLOOQHYHUVRUU\QHYHU SHUPLVVLRQ\RXKDYHDQGZRUN\RXUZD\XS/HDSVORRNJRRGLQWKH
OHDGWRWKH9&VD\LQJ³*UHDWKHUH¶VDFKHFNIRUPLOOLRQRQ\RXU PRYLHVEXWLQIDFWVXFFHVVLVPRVWO\DERXWILQGLQJDSDWKDQGZDONLQJLW
WHUPV´ RQHVWHSDWDWLPH
2UWKHIOHGJOLQJDXWKRUWKHRQHZKRKDVEHHQWXUQHGGRZQE\WHQDJHQWV
DQGWKHQFRSLHVKLVPDQXVFULSWDQGIHGH[HVLWWRWZHQW\ODUJHSXEOLVKLQJ
KRXVHV²ZKDWLVKHKRSLQJIRUH[DFWO\"3HUKDSVKH¶VKRSLQJWRZLQWKH
PDJLFORWWHU\WREHWKHRQHSLHFHRIVOXVKFKRVHQRXWRIDPLOOLRQ
OLWHUDOO\DPLOOLRQWKDWJRHVRQWREHSXEOLVKHGDQGUHYHUHG

-XQH
7RGD\·V7DEEORLG
'$01,:,6+,¶'7+28*+72)7+$7 817(03/$7(5
,VWKLVWKHIW" 7LPHWREH)HDUOHVV
-81$0 -81$0
:KHQ,UHDG6HWK¶VEORJSRVWYLD*RRJOH5HDGHU,QHYHUJRWR6HWK¶VVLWH
*RRJOHJHWVWKHWUDIILF*RRJOHVHOOVWKHDGV*RRJOHPDNHVWKHPRQH\
6HWKGRHVWKHZRUN%XW6HWKGRHVQ¶WVHOOWKHDGGRHVQ¶WJHWWKH
VXEVFULEHUGRHVQ¶WJHWSHRSOHWRWKHRWKHUSDJHVRQKLVZHEVLWHV
*RRJOHZLQVWKHUHDGHUZLQV
:KDWDERXWWKHFUHDWRU"
,IWKHUH¶VRQHUHFXUUHQWWRSLFKHUHDW8QWHPSODWHUWKDWLVIHDU
:KHWKHULILW¶VWU\LQJWRRYHUFRPHLWRUMXVWDFFHSWLQJLW¶VSDUWRIWKH
JDPHIHDULVDSSURDFKHGIURPYDULRXVSHUVSHFWLYHVEHFDXVHRILWV
UHOHYDQFH5HJDUGOHVVRIZKDWSDWK\RXWU\WRSXUVXHLQ\RXUOLIHIHDULVD
FRQVWDQWLQHYHU\OLIHFKDQJLQJGHFLVLRQ
7KDW¶VZK\WKH8QWHPSODWHUWHDPLVDOZD\VORRNLQJIRUZD\VWRKHOSRXU
UHDGHUVDQGRXUVHOYHVWRGHDOZLWKIHDUWKHEHVWZHFDQ
6KDUH
(QWHUIHDUOHVV
)HDUOHVVLVDQHZ)5((RQOLQHPDJD]LQHWKDWIRFXVHVRQVWRULHVDQG
LQWHUYLHZVDERXWWKLVYHU\SRZHUIXOVXEMHFW,QWULJXHG"+HUH¶VZKDWWKH\
KDYHWRVD\
IHDUOHVVLVDPRYHPHQWERUQHIURPRXUULJKWWROLYHZLWKRXW
IHDU,W¶VZKHUHKXPDQSRWHQWLDOPHHWVWKHFRXUDJHWRDFW
(YHU\VWRU\\RXUHDGLVDQH[DPSOHRIFRQTXHULQJIHDU
ZKHWKHUDQLPPHGLDWHSK\VLFDOGDQJHUWKHORRPLQJ
WKUHDWRIIDLOXUHWKHSUHVVXUHWRFRPSHWHLQDFKDQJLQJ
ZRUOGWKHLQFHVVDQWTXHVWIRULGHQWLW\RUWKHRYHUZKHOPLQJ
XQFHUWDLQW\RIGHDWK
7KHVHSHRSOHHPEUDFHWKHLUFLUFXPVWDQFHVZLWKUHVROYHDQG
FRXUDJH7KH\GLGQ¶WDQGGRQ¶WUXQDZD\

7KH\UHSUHVHQWWKHEHVWRIWKHKXPDQVSLULWDQGUHYHDODQ ,QFRPH%ORJ
LQQHUVWUHQJWKZHDOOSRVVHVVWKRXJKZHPD\QRWNQRZLW
7RGD\,¶PJRLQJWREHWDONLQJDERXWVRPHWKLQJUHDOO\LPSRUWDQWIRU\RXU
IHDUOHVVLVPRUHWKDQDPDJD]LQH±LWLVRXUWRROER[IRU EORJRURQOLQHEXVLQHVVDQGWKDWLVNH\ZRUGUHVHDUFK
ILJKWLQJIHDU
:KHWKHU\RX¶UHGRLQJNH\ZRUGVUHVHDUFKRQ\RXURZQXVLQJWRROVOLNH
IHDUOHVVLVDERXWZKRZHEHFRPHE\IDFLQJRXUGHHSHVW WKH*RRJOH.H\ZRUGWRROIURP$GZRUGVRU\RX¶UHKLULQJRXWVRPHRQH
IHDUV HOVHWRGRLWIRU\RX\RXKDYHWRXQGHUVWDQGZKDWWKHQXPEHURQHJRDOLV
EHKLQGDOONH\ZRUGUHVHDUFKDQGWKDW¶VWRUDQNRQWKHILUVWSDJHRI
7KHLQWHUYLHZHHVDUHVLPSO\DPD]LQJZLWK+RZDUG=LQQDQG7RQ\+VLHK *RRJOH7KDW¶VZKDWUHDOO\PDWWHUV
KDYLQJEHHQDOUHDG\IHDWXUHGWRQDPHDIHZ
,I\RX¶UHRQWKHVHFRQGSDJH\RXPLJKWDVZHOOEHRQWKHWKSDJH
+HUHDW8QWHPSODWHUZHZRXOGOLNHWRFRQJUDWXODWHIRXQGHUV&OD\+HEHUW EHFDXVHHYHU\WKLQJKDSSHQVRQWKHILUVWSDJH,W¶VVXSHUVXSHUVXSHU
DQG,VKLWD*XSWDIRUMRLQLQJRXUIRUFHVRQILJKWLQJIHDUDQGZHVWURQJO\ LPSRUWDQWWKDW\RXXQGHUVWDQGWKLVEHFDXVHWKDW¶V\RXUJRDO6R
UHFRPPHQG\RXWRFKHFNRXW)HDUOHVV:HKDYHQRWKLQJWRJDLQH[FHSW ZKHQHYHU\RX¶UHGRLQJNH\ZRUGUHVHDUFKZKLFK,¶PJRLQJWRVKRZ\RX
WKHSRVVLELOLW\RIHQFRXUDJLQJPRUHSHRSOHWROLYHWKHLUOLYHVEHWWHU KRZWRGRLQFHUWDLQZD\VLQDVHFRQG\RXJRWWDDQDO\]HZKRLVRQWKH
ILUVWSDJHDQGNQRZKRZWREHDWWKHP
$QG\RXKDYHQRWKLQJWRORVHHLWKHU,IDQ\WKLQJ\RX¶OOUHDOL]HWKDW\RX
ZLOOEHFRPHDOLWWOHPRUHFRXUDJHRXVDOLWWOHPRUHIHDUOHVV 1RZWKLVJRHVLI\RX¶UHJRLQJWRZULWHEORJSRVWVDQG\RX¶UHORRNLQJIRU
NH\ZRUGVIRU\RXUEORJSRVWV2ULI\RX¶UHORRNLQJWRJHWLQWRQHZQLFKHV
36,KHDU\RXFDQVXEPLW\RXUVWRU\DVZHOO IRUQLFKHVLWHV$QGLI\RX¶UHGRLQJDUWLFOHVOLNHRQH+RZRU,QIREDUUHO
RU6TXLGRRRU+XESDJHVRUZKDWHYHU«
<RXZDQWWREHRQWKDWILUVWSDJH7KDW¶VZKHUHDOOWKHPRQH\LV±WKDW¶V
ZKHUHWKHWUDIILFLV,I\RX¶UHRQDEORJWKDW¶VZKHUHWKHVXEVFULEHUVDUH
\RXUUVVUHDGHUV±HYHU\WKLQJ
7+(60$573$66,9(,1&20(%/2*
6RLI\RX¶UHGRLQJDQ\RIWKHVHWKLQJVEORJSRVWVQLFKHVLWHVRUDUWLFOHV
0DVWHULQJ.H\ZRUG5HVHDUFK \RXKDYHWRUHPHPEHUWKDW\RXZDQWWRUDQNRQWKHILUVWSDJHRI*RRJOH
DQG6(2&RPSHWLWLRQ 6RKRZGR\RXGRWKLV"+RZGR\RXSURSHUO\GRNH\ZRUGUHVHDUFK"
-81$0
)LUVW\RXKDYHWRXQGHUVWDQGVHDUFKHV+RZPDQ\SHRSOHDUHVHDUFKLQJ
7RGD\,WKRXJKW,¶GPL[LWXSDELWDQGSXEOLVKDYLGHRSRVW,UHDOO\ DQGIRUZKDWNH\ZRUGV
HQMR\GRLQJWKHPHVSHFLDOO\ZKHQ,JHWWRXVHP\³HOHFWURQLF
ZKLWHERDUG´DV\RX¶OOVHH 6HFRQGO\\RXKDYHWRXQGHUVWDQGHYHU\WKLQJDERXW\RXUFRPSHWLWLRQ
%DFNOLQNV3DJH5DQNV,QGH[HGSDJHV'RPDLQ$JH±HYHU\WKLQJVRWKDW
,QWKLVPLQXWHYLGHR,WDONDERXWKRZ,GRNH\ZRUGUHVHDUFKZKHQLW \RXNQRZZKDW\RXKDYHWRGRWREHDWWKHP±WKHQUDQNRQWKHILUVWSDJH
FRPHVWRWKHEORJSRVWVWKDW,ZULWHWKHDUWLFOHVWKDW,VXEPLWWRDUWLFOH DQGWKHQEHDOOJRRG
VLWHVDQGVHOHFWLQJSRWHQWLDOSURILWDEOHQLFKHVLWHV,DOVRVKRZ\RX
H[DFWO\KRZ,GRDELWRI6(2³HVSLRQDJH´WRVFRSHRXWH[DFWO\ZKDW, 6RZKDWWRROVFDQ\RXXVHWRGRSURSHUNH\ZRUGUHVHDUFK"
KDYHWRGRWRRXWUDQNP\FRPSHWLWLRQ
:HOOWKHUH¶VDQXPEHURIIUHHRQHVWKDW\RXFDQXVH±WKH*RRJOH
,¶YHLQFOXGHGDURXJKWUDQVFULSWLRQEHORZWKHYLGHRIRU\RXUFRQYHQLHQFH $GZRUGV.H\ZRUGWRRO±WKDW¶VRQHWKDWDORWRISHRSOHDUHXVLQJ
:DWFK0DVWHULQJ.H\ZRUG5HVHDUFKDQG6(2RQ<RX7XEH %XWWKHUH¶VDSDLGRQHRXWWKHUHWKDW,XVHHYHU\VLQJOHGD\±ZKHQ,¶P
ZULWLQJEORJSRVWVZKHQ,¶PZULWLQJDUWLFOHVDQG,¶PDERXWWRGRQLFKH
0DUNHW6DPXUDL)UHH7ULDO VLWHVDVZHOODQGLW¶VEHHQKHOSLQJPHRXWWUHPHQGRXVO\WRILOWHURXWDOO
KWWSZZZVPDUWSDVVLYHLQFRPHFRPPDUNHWVDPXUDL WKHFUDSS\NH\ZRUGVRXWWKHUHWKDWKDYHQRVHDUFKHVRUDUHWRR
FRPSHWLWLYHWRUDQNIRU±DQGWKDW¶V0DUNHW6DPXUDL
7UDQVFULSWLRQ
>0DUNHW6DPXUDL6HJPHQW@
>,QWUR@
>@±,Q0DUNHW6DPXUDL,W\SHLQP\SULPDU\NH\ZRUGIRU
+H\HYHU\ERG\:KDW¶VXS"7KLVLV3DW)O\QQIURPWKH6PDUW3DVVLYH VPDUWSDVVLYHLQFRPHFRPSDVVLYHLQFRPH

>@±&OLFNRQ6(2&RPSHWLWLRQDQGFOLFNRQ*HQHUDWH5HVXOWVWRJHW 62&,$/0(',$0$5.(7,1*
OLVWRIWRSUDQNHGVLWHVLQ*RRJOHIRUWKHNH\ZRUG(DFKRIWKHOLVWLQJV
VKRZUHOHYDQW6(2GDWDLQFOXGLQJ'RPDLQ$JH3DJH5DQNLQJ,QGH[HG 7KH+RPDJH
3DJHVIURP*RRJOH3DJH%DFN/LQNV'RPDLQ%DFN/LQNV%DFN/LQNV -81$0
IURP(GXFDWLRQDODQG*RYHUQPHQW6LWHV'LUHFWRU\/LVWLQJV.H\ZRUGLQ
7LWOHRIWKH3DJH.H\ZRUGLQ85/.H\ZRUGLQ'HVFULSWLRQDQG
.H\ZRUGLQ+HDGHU
>@±,FRPSDUHP\VLWHWRWKHVLWHDERYHPHEDVHGRQWKHDERYH
IDFWRUV
>@±0DUNHW6DPXUDLWHOOVPHWKDWWKHUHDVRQ,¶PQRWUDQNLQJ
KLJKHUWKDQVRPHRIWKHRWKHUVLWHVLVEHFDXVHP\NH\ZRUGLVQRWLQP\
KHDGHU
>@±3DJH5DQN$QDO\VLV±0DUNHW6DPXUDLGLVFRYHUVDOORIWKH
ZHEVLWHVWKDWEDFNOLQNWRP\FRPSHWLWRU¶VZHEVLWHDQGWKHLUSDJHUDQNV
+LJKHUSDJHUDQNVDUHZRUWKPRUH
>@±<RXFDQFOLFNRQWKRVHEDFNOLQNLQJZHEVLWHVDQGVFRSHRXW 6RPHWLPHVLW¶VKHOSIXOWRUHWXUQWRDWLPHZKHQWKHZRUOG¶VLQIRUPDWLRQ
ZKHUH\RXUFRPSHWLWLRQLVPHQWLRQHGRQWKRVHVLWHV2QVRPHVLWHV\RX GLGQ¶WPRYHTXLWHWRIDVWZKHQZHKDGPRUHWLPHWRWKLQNZLWKRXWWKH
FDQJUDEDOLQNEDFNWR\RXURZQVLWHDVZHOO,JRWKURXJKDFRXSOHRI QHHGWRFKHFNPRUHWKDQDKDQGIXORIHPDLODFFRXQWV VRFLDOQHWZRUNV
H[DPSOHV±WKHILUVWLVDWUDFNEDQNOLQNDQGWKHVHFRQGLVDFRPPHQWRQ DQGEHIRUHZHZHUHGULQNLQJIURPDILUHKRVHRILQIRUPDWLRQ7KDW¶VRQH
DGRIROORZEORJ UHDVRQ,FDUU\[LQGH[FDUGVDQGDMRWWHUDQGNHHSIRXQWDLQSHQVRQ
P\GHVN
>@±<RXFDQXVHWKLVWHFKQLTXHWR³FDWFKXS´WR\RXUFRPSHWLWLRQ
DQGHYHQWXDOO\UDQNKLJKHUWKDQWKHP ,W¶VVRPHZKDWRIDQKRPDJHWRP\VHOIWKDWUHTXLUHVPHWRSXWDZD\
WKHODSWRSDQGIRFXVRQZKDW¶VLQIURQWRIPHZLWKRXWSRSXSV
>@±<RXFDQFOLFNRQWKHOLQNEHORZWRGRZQORDG\RXUIUHHWULDORI QRWLILFDWLRQVRURWKHULQWHUUXSWLRQV3OXVLW¶VXQGHQLDEO\XVHIXODQG
0DUNHW6DPXUDL,I\RXGRQ¶WOLNHLWQRZRUULHVEXWLW¶VDSURGXFWWKDW, DFFHVVLEOH,W¶VDOZD\VZLWKPHLWQHYHUFUDVKHVDQGWKHIOLJKWDWWHQGDQWV
KLJKO\KLJKO\UHFRPPHQGWKDW\RXWU\ GRQ¶WPDNHPHSXWLWDZD\ZKHQWKHSODQHLVWDNLQJRIIOUODQGLQJ
0DUNHW6DPXUDL)UHH7ULDO ,PDJLQHP\VXUSULVHDQGGHOLJKWZKHQ,GLVFRYHUHGWKLV86%W\SHZULWHU
KWWSZZZVPDUWSDVVLYHLQFRPHFRPPDUNHWVDPXUDL WKDWFDQFRQQHFWWR\RXUL3DGYLD0DVKDEOH
7KDQNVIRU\RXUWLPHHYHU\RQH&KHHUV
±±±±±±± ,I\RX¶UHXVLQJDQ566UHDGHU\RXPD\QHHGWRFOLFNWKURXJKIRUWKH
$VDOZD\V,MXVWZDQWHGWRWKDQN\RXIRUVXEVFULELQJ7KLVEORJLVD YLGHR
VXFFHVVEHFDXVHRI\RXDQG\RXUVXSSRUW+HUH¶VWR\RXURQOLQH
VXFFHVV
<RXFDQFKHFNRXWPRUHDERXWWKH86%7\SHZULWHUKHUH
%HFRPHD)DQRIWKH6PDUW3DVVLYH,QFRPH%ORJRQ)DFHERRNDQGMRLQ
WKHFRQYHUVDWLRQ ,¶PUHPLQGHGRI/HUR\$QGHUVRQ¶VIDPRXVWXQH³7KH7\SHZULWHU´
ZULWWHQIRUWKH%RVWRQ3RSV
7KDQN\RXVRPXFK
0DVWHULQJ.H\ZRUG5HVHDUFKDQG6(2&RPSHWLWLRQ
7U\SHUIRUPLQJWKDWZLWKDQL3DG
6RPHWLPHVFDQEULQJDGGHGEHQHILWV7U\VORZLQJGRZQIURPWLPHWR
WLPHLQZKDWHYHUPDQQHUVXLWV\RX$QGLI\RX¶UHLQWKHPDUNHWIRUD
MRWWHU\RXFDQJHW\RXURZQKHUH

WKRVHRSSRUWXQLWLHV7RHPXODWHWKHPDQGWXUQ\RXUEXVLQHVVLQWRD
VXFFHVVKHUH¶VZKDW\RXQHHGWRGR
1HYHULJQRUHWKHSRZHURIQHWZRUNLQJ1HWZRUNVZRUNZRQGHUV±
6(7+¶6%/2* LW¶VDVVLPSOHDVWKDW,W¶VWKHSHRSOHZKRNQRZKRZWRPDNHWKHULJKW
FRQQHFWLRQVDQGXVHWKHPDWWKHULJKWWLPHVZKRWDVWHPRUHVXFFHVVWKDQ
7U\LQJWRSOHDVH DQ\RQHHOVH:KHQ\RXEXLOGDQHWZRUNDQGXVHLWHIIHFWLYHO\WRIXUWKHU
-81$0 \RXURSSRUWXQLWLHV\RXGRQ¶WKDYHWRZRUU\DERXWIDLOXUHRUIDOOLQJVKRUW
7KHULJKWSHRSOHPDWWHUDQGVXFFHVVIXOHQWUHSUHQHXUVNQRZKRZWREXLOG
:KRLV\RXUPDUNHWLQJRU\RXUSURGXFWRU\RXUHIIRUWWU\LQJWRSOHDVH" DQGPDLQWDLQHIIHFWLYHUHODWLRQVKLSVWKDWWKH\FDQWDSDQGXVHZKHQ
QHFHVVDU\:KHQQHWZRUNLQJ\RXPXVWDOZD\VUHPHPEHUWKDWLW¶V
(YHU\FDPSDLJQWKDW,¶YHHYHUVHHQIDLOKDVIDLOHGIRUSUHFLVHO\WKHVDPH LPSRUWDQWWRJLYHEDFNDVPXFKDV\RXH[SHFWIURPSHRSOHZKHQ\RXFDOO
UHDVRQLWSOHDVHVWKHZURQJSHUVRQ7KLQNDERXWLWLWZRXOGQ¶WKDYH LQSURIHVVLRQDORUSHUVRQDOIDYRUV,ILW¶VDOZD\VDRQHVLGHGDIIDLU\RX¶UH
ODXQFKHGLILWKDGQ¶WSOHDVHGWKHERVVRUWKHFOLHQWULJKW"3OHDVLQJWKH JRLQJWRILQGWKDW\RXUQHWZRUNEHFRPHVGHIXQFWDQGXVHOHVV$Q
ZURQJSHUVRQPHDQWIDLOXUH HIIHFWLYHQHWZRUNLVOLNHDWUHHZLWKPDQ\EUDQFKHV±LWQHHGVWREH
QXUWXUHGDQGQRXULVKHGLI\RXZDQWWRHQMR\WKHVKDGHRILWVEUDQFKHV
7KHVDPHWKLQJLVWUXHRQDGHHSHUOHYHOLQ\RXUFDUHHUFKRLFHRUZKDW DQGWKHIUXLWRILWVEORRP
\RXZULWHRUZKDW\RXVD\RUZKDW\RXVHOORUKRZ\RXVHOOLWLI\RXDUH
ZRUNLQJKDUGWRSOHDVHWKHZURQJSHRSOH\RX¶OOIDLO 1HYHUDVVXPHWKDWRSSRUWXQLWLHVGRQ¶WQHHGZRUNWRZRUN
7KH\PD\EHRSSRUWXQLWLHVEXWWKH\JLYH\RXVXFFHVVRQO\ZKHQ\RX¶UH
'RHVWKDWFULWLFRUWKDWEX\HURUWKDWVSRXVHRUWKDWJLUOIULHQGRUWKDW ZLOOLQJWRZRUNRQWKHPWRUHDFK\RXUJRDOV2SSRUWXQLWLHVEHFRPHGXGV
LQYHVWRUUHDOO\PDWWHUDVPXFKDV\RXWKLQNWKH\GR" ZKHQWKH\DUHQRWIROORZHGXSDQGZRUNHGXSRQVRQRPDWWHUKRZHDV\
WKHSDWKDKHDGVHHPVLW¶VXSWR\RXWRHQVXUHWKDWWKLQJVGRQ¶WJRDZU\
DQGWKDW\RXNQRZDQGDUHLQFRQWURORIZKDW¶VKDSSHQLQJDURXQG\RX
:KHQ\RXDVVXPHWKDWRSSRUWXQLWLHVDXWRPDWLFDOO\FRQYHUWWKHPVHOYHV
%86,1(6623325781,7,(6:(%/2* WRVXFFHVV\RX¶UHLQIDFWWKURZLQJDZD\WKHRSSRUWXQLWLHV
:D\VWR0DNHWKH0RVWRI $OZD\VNHHS\RXUH\HVDQGRSWLRQVRSHQ$QGILQDOO\MXVWEHFDXVH
\RX¶YHSLFNHGXSRQHRSSRUWXQLW\LWGRHVQ¶WPHDQWKDW\RXPXVWFORVH
%XVLQHVV2SSRUWXQLWLHV \RXUH\HVDQGHDUVWRWKHSRVVLELOLW\RIDQRWKHU5DWKHUWKHVXFFHVVIXO
-8130 HQWUHSUHQHXULVDOZD\VRSHQWRQHZRSWLRQVDQGLVUHDG\WRWDNH
DGYDQWDJHRIEHWWHURSSRUWXQLWLHVRUIXUWKHUWKHFXUUHQWRSSRUWXQLW\
XVLQJLQQRYDWLYHLGHDV$OVRWKH\DUHSUHSDUHGZLWKEDFNXSRSWLRQVDQG
GRQ¶WSDQLFLIWKLQJVGRQ¶WJRDFFRUGLQJWRSODQDQGDUHQHYHUKHVLWDQWWR
WDNHFDOFXODWHGULVNV$QRSSRUWXQLW\LVQRWWKHJRDODWWKHHQGRIWKH
URDGUDWKHULW¶VWKHVWDUWLQJEORFNIURPZKLFK\RXWDNHRIIDV\RXVSULQW
WRZDUGVWKHILQLVKOLQH7RRYHUFRPHWKHREVWDFOHVLQEHWZHHQDQGRU
FKRRVHDOWHUQDWLYHSDWKVDFFRUGLQJO\\RXQHHGWRKDYHDQRSHQPLQGDQG
\RXUZLWVDERXW\RX
7KLVZDVDJXHVWSRVWE\$QQD0LOOHUZKRIRUKHUGD\MREZULWHVRQWKH
WRSLFRIRQOLQHGHJUHH6KHZHOFRPHV\RXUFRPPHQWVYLDHPDLODW
DQQDPLOOHU#JPDLOFRP
,¶YHKHDUGSHRSOHFRPSODLQLQJRUEUDJJLQJWKDWWKH\ZRXOGDFKLHYH

VXFFHVVHDVLO\LIRQO\WKH\ZHUHSURYLGHGZLWKWKHULJKWRSSRUWXQLWLHV
7KHWURXEOHZLWKRSSRUWXQLWLHVLVWKDWWKH\GRQ¶WFRPHNQRFNLQJZKHQ
\RXH[SHFWWKHPWRUDWKHU\RXKDYHWREHRQWKHORRNRXWIRUWKHPDW
HDFKDQGHYHU\SRLQWRI\RXUOLIH7KHVXFFHVVIXOEXVLQHVVHQWUHSUHQHXUV
DUHWKRVHZKRQRWRQO\JUDEHYHQWKHVOLJKWHVWKLQWRIDQRSSRUWXQLW\DQG
WXUQLWLQWRDQDGYDQWDJHEXWZKRDOVRNQRZKRZWRPDNHWKHPRVWRI

%86,1(6623325781,7,(6:(%/2* %86,1(6623325781,7,(6:(%/2*
(QWHUSUHQHXUVKLS+LWV<HDU $$53'HYHORSV,QWHUQHW)RU
+LJK *URZQ8SV
-8130 -8130
$FFRUGLQJWRDUHSRUWDW0HGLD3RVWDIWHULQYHVWLQJWZR\HDUVDQG
PLOOLRQVRIGROODUV$$53XQYHLOHGZKDWLWLVFDOOLQJ³WKH,QWHUQHWIRU
JURZQXSV´7KDW¶VDFFRUGLQJWR.\OH/HZLV$$53¶V93RIPHGLDVDOHV
5DWKHUWKDQPDNLQJKLVWRU\IRULWVGHHSUHFHVVLRQDQGUHFRUG DQGEXVLQHVVGHYHORSPHQWZKRVDLGWKHRQOLQHRYHUKDXOZDVFULWLFDOWR
XQHPSOR\PHQWPLJKWLQVWHDGEHUHPHPEHUHGDVWKH\HDUEXVLQHVV PHHWLQJWKHJURZLQJGLJLWDOGHPDQGVRIWKHFURZG
VWDUWXSVUHDFKHGWKHLUKLJKHVWOHYHOLQ\HDUV±HYHQH[FHHGLQJWKH
QXPEHURIVWDUWXSVGXULQJWKHSHDNWHFKQRORJ\ERRP :H¶UHWDONLQJDERXWDQHZJHQHUDWLRQRIXVHUV´VDLG
/HZLV³7KH\¶YHJURZQZLWKWKHSHQHWUDWLRQRIWKLVWHFKQRORJ\
$FFRUGLQJWRWKH.DXIIPDQ,QGH[RI(QWUHSUHQHXULDO$FWLYLW\DOHDGLQJ DWZRUNDQGDWKRPH´
LQGLFDWRURIQHZEXVLQHVVFUHDWLRQLQWKH8QLWHG6WDWHVWKHQXPEHURI
QHZEXVLQHVVHVFUHDWHGGXULQJWKH±UHFHVVLRQ\HDUVLQFUHDVHG ,QGHHGE\$$53¶VRZQHVWLPDWHVPRUHWKDQDTXDUWHU²
VWHDGLO\\HDUWR\HDU ²RI$PHULFDQVDJHQRZXVHVRFLDOPHGLD:HEVLWHV
ZLWK)DFHERRNEHLQJWKHPRVWSRSXODUIROORZHGE\0\6SDFH
,QWKHRXWRIDGXOWVZKRVWDUWHG /LQNHG,QDQG7ZLWWHU
EXVLQHVVHVHDFKPRQWKUHSUHVHQWDSHUFHQWLQFUHDVHRYHU
RUPRUHVWDUWVSHUPRQWKWKDQLQDQG $ORQJZLWKFRQVROLGDWLQJRQFHGLVSDUDWHFRQWHQWFKDQQHOV
PRUHVWDUWVSHUPRQWKWKDQLQ XQGHURQHURRI²DWDDUSRUJ²WKHUHYDPSLQFOXGHV$$53
QHZVDQGFRQWHQWDSSVSURGXFHGE\WKHILUP%RWWOH5RFNHW
³&KDOOHQJLQJHFRQRPLFWLPHVFDQVHUYHDVDPRWLYDWLRQDO DQGWKH$$53'LJLWDO1HZVVWDQGSRZHUHGE\7H[WHULW\DQG
ERRVWWRLQGLYLGXDOVZKRKDYHEHHQODLGRIIWREHFRPHWKHLU IHDWXULQJDOOWKUHH$$53SXEV
RZQHPSOR\HUVDQGIXWXUHMREFUHDWRUV´VDLG&DUO6FKUDPP
SUHVLGHQWDQG&(2RIWKH.DXIIPDQ)RXQGDWLRQ 3KRWRE\$$53
³%HFDXVHHQWUHSUHQHXUVGULYHWKHHFRQRP\WKHJURZWKLQ
EXVLQHVVVWDUWXSVLVHQFRXUDJLQJDQGKRSHIXOO\SRLQWV
WRDKRSHIXOWUHQGLQWHUPVRIRXUHFRQRPLFUHFRYHU\´ )URP%XVLQHVV2SSRUWXQLWLHV:HEORJ
3KRWRE\.DXIIPDQ)RXQGDWLRQ

%86,1(6623325781,7,(6:(%/2* 7KHJUHDWSURPLVHDQGSRWHQWLDOLQSXEOLFUDGLRLVWKH
FRPELQDWLRQRIWKHORFDODQGWKHQDWLRQDO7RWKHH[WHQWWKDW
2QOLQH:RQ¶W.LOO7KH5DGLR VWDWLRQVDUHYHU\VWURQJDQGYHU\UHOHYDQWORFDOO\WKH\ZLOO
VXUYLYHWKHORVVRIWKHPRQRSRO\RIWKHEURDGFDVWWRZHU
6WDU
-8130 &RQWLQXH5HDGLQJ³2QOLQH:RQ¶W.LOO7KH5DGLR6WDU´
3KRWRE\YLHUGULH
'$01,:,6+,¶'7+28*+72)7+$7
:KHQ\RXUEUDQGXQGHUVWDQGV
\RX7KH7R\RWD6ZDJJHU
9LYLDQ6FKLOOHUSUHVLGHQWDQGFKLHIH[HFXWLYHRI135WDONHGZLWK.DUD :DJRQ
6ZLVKHURI7KH:DOO6WUHHW-RXUQDODERXWWKHULVHRI,QWHUQHWUDGLR -8130
JHWWLQJSURJUDPVRQ$SSOH,QF¶VL3DGDQGIRUPLQJSDUWQHUVKLSVZLWK
RWKHUQRQSURILWQHZVRUJDQL]DWLRQV ,DOUHDG\RZQWKLVPLQLYDQ,DOUHDG\NQRZ,¶PFRROLQDEDOGIDW
$OWHUQDGDGZD\
135KDVDQDPD]LQJDPRXQWRIVWXII\RX¶UHGRLQJ
GLJLWDOO\FRPSDUHGWRSXEOLFUHJXODURUFRPPHUFLDO %XWLW¶VJUHDWZKHQDFRPSDQ\UHFRQQHFWVDQGUHERQGVZLWKH[LVWLQJ
UDGLRVWDWLRQV+RZDUH\RXDOOWKLQNLQJDERXWWKLV" FXVWRPHUVZLWKPDUNHWLQJWKDWVSHDNVWRWKHP7KDW¶VZKDWEUDQG
EXLOGLQJLVDOODERXW
6&+,//(5$JDLQVWWKHRGGVDQGVXUSULVLQJWRPDQ\
SHRSOHRXUDXGLHQFHIRUMXVWEURDGFDVWUDGLRFRQWLQXHVWR :DWFKWKLV
JURZ:HKLWRXUUHFRUGUDWLQJVQXPEHULQWKHODVWUDWLQJV
SHULRGRIDOPRVWPLOOLRQSHRSOHZKRWXQHLQHYHU\ZHHN 367KLVZRUNVWRR
+RZHYHUZH¶UHDSXEOLFVHUYLFHRUJDQL]DWLRQ:HKDYHD
PLVVLRQWRSURYLGHIRUDQLQIRUPHGFLWL]HQU\DQGZHDOVR 6KDUH
KDYHDJRDORIXQLYHUVDODFFHVV
$QGDV\RXQJHUJHQHUDWLRQVDUHFRQVXPLQJFRQWHQWRQWKHLU
FHOOSKRQHVRURQWKHLUL3KRQHVRURQWKHLUL3DGVRURQWKHLU
$QGURLGSKRQHVRUZKDWHYHUZHZDQWWRPDNHVXUHWKDWZH¶UH
WKHUH6RLW¶VYHU\LPSRUWDQWIRUXVWREHRQHYHU\SODWIRUP
:KHUHGR\RXWKLQN\RXUPRVWLPSRUWDQWDXGLHQFHLV
JRLQJWRFRPHIURPLQILYH\HDUV"
6&+,//(5,QWKHQH[WILYHWR\HDUV,QWHUQHWUDGLRZLOO
WDNH>WKHEURDGFDVWWRZHU¶V@SODFHDQGWKHUH¶VQRUHDVRQZK\
ZHVKRXOGEHIHDUIXODERXWLW,QIDFWZHVKRXOGHPEUDFHLW
HVSHFLDOO\RQPRELOH0RELOHLVWKHVHFRQGFRPLQJRIUDGLR,W
KDVEHHQDJRGVHQGIRUXVEHFDXVHPRELOHGHYLFHVDUHVRHDV\
WRWDNHZLWK\RXDQG\RXFDQOLVWHQWRDQ\VWUHDP\RXZDQW

-XQH
7RGD\·V7DEEORLG
'$01,:,6+,¶'7+28*+72)7+$7
6KDUH
<RX¶UHKHDULQJDERXW=DSSRV
&(27RQ\+VLHKHYHU\ZKHUH
1RZ\RXJHWWRPHHWKLP
-81$0
817(03/$7(5
/LPLWLQJ%HOLHIVDQGWKH3RZHU
RI&KRLFH
-81$0
7RQ\¶VQHZERRN'HOLYHULQJ+DSSLQHVVLVWKHUHDOGHDO,W¶VDERRN\RX
KDYHWRUHDG
,W¶VDIDQWDVWLFJXLGHWRKRZWRFUHDWHDQDPD]LQJFRUSRUDWHFXOWXUHWKDW
WXUQVFXVWRPHUVLQWRIDQVDQGHPSOR\HHVLQWRHYDQJHOLVWV
7RQ\LVWKHNH\QRWHVSHDNHUDWRXU:RUGRI0RXWK6XSHUJHQLXV
FRQIHUHQFH
/LPLWLQJ%HOLHIV
-RLQXVDQGPHHW7RQ\
,UHFHQWO\FDPHXSRQ0RUW\OHINRH¶V IUHHOLQNWRHOLPLQDWHDEHOLHI,JRW
<RX¶OOJHWDIUHHFRS\RIWKHERRN²DQGDGD\WKDWZLOOFKDQJHKRZ\RX SOHQW\RIWKHVHWKLQJVJRLQJDURXQGLQP\KHDGVWRSSLQJPHIURPGRLQJ
UXQ\RXUEXVLQHVVIRUHYHU SOHQW\RIWKLQJVVR,ILJXUHG,¶GJLYHLWDVKRW+LVLQVWLWXWHDQGORINRH
PHWKRGLVVDLGWREHKLJKO\HIIHFWLYHDQGLVKLJKO\UHFRPPHQGHG6R,
)RUDSUHYLHZFKHFNRXWP\OLYHLQWHUYLHZZLWK7RQ\ FOLFNWKHOLQNSUHVVSOD\DQGZDLWDQ[LRXVO\UHDG\WRWKURZRXWDFRXSOH
RIP\OLPLWLQJEHOLHIV
'HOLYHULQJ+DSSLQHVV$3DWKWR3URILWV3DVVLRQDQG3XUSRVH²OLYH
ZLWKDXWKRUDQG=DSSRV&(27RQ\+VLHKIURP*DV3HGDORQ9LPHR 7KHSURFHVVLVDVWUDLJKWIRUZDUGFRJQLWLYHSURFHVVWKDWVRUWRIZRUNVOLNH
WKLV
)LUVW0RUW\H[SODLQVWKDW\RXPXVWEHFRPHDZDUHRIWKHFRUHEHOLHI\RX
ZLVKWRHOLPLQDWH:KDWHYHULWLVWKDW\RXZRXOGOLNHWRHOLPLQDWH
DFNQRZOHGJHLW'RQ¶WEHDVKDPHGWRKDYHLW7KHUHLVQRUHDVRQWREH
DVKDPHGRIKDYLQJLW(YHU\RQHKDVWKHP

7KHQKHH[SODLQVWKDWZHQHHGWREHFRPHDZDUHRIZKHQZHIRUPHGLW (IIHFWLYH3HRSOHDQGKRZ6WHSKHQ&RYH\H[SODLQHGWKDWEHWZHHQ
7RWKLQNEDFNWRWKHVRXUFHRUVRXUFHV,W¶VRNLI\RXKDYHRQHRURQH VWLPXOXVDQGUHVSRQVHZHKDYHWKHIUHHGRPWRFKRRVHKRZZHUHVSRQG
PLOOLRQH[SHULHQFHVFRPHWRPLQG:KDW¶VLPSRUWDQWLVWKDW\RXNQRZ WRWKLQJVWKDWKDSSHQWRXVLQOLIHVRWKDWZHFDQDFWLQVWHDGRIDOZD\VEH
WKDWQRRQHHYHQWOHGWRWKHEHOLHI,QPRVWFDVHVDEHOLHILVIRUPHGIURP DFWHGXSRQEHFRPLQJSURDFWLYHLQVWHDGRIUHDFWLYHEHFDXVHZHKDYH
PDQ\VLPLODUH[SHULHQFHV<RXGRQ¶WQHHGWRUHPHPEHUVSHFLILF UHVSRQVHDELOLW\)XUWKHUPRUHLQ\RXUUHVSRQVHOLHV\RXUSRZHUWRPDNH
LQFLGHQWV$VORQJDV\RXKDYHDVHQVHWKDWWKHUHZDVDQHJDWLYHIHHOLQJ RUEUHDN\RXUVHOI,WFDQEHWKHGLIIHUHQFHEHWZHHQVXFFHVVDQGIDLOXUH
DWWDFKHGWRWKHH[SHULHQFHDQG\RXFDQLPDJLQHZKDWWKDWZRXOG¶YHEHHQ JHWWLQJKLVKHUQXPEHURUJHWWLQJUHMHFWHGHWF
OLNH7KDW¶VDOOWKDWLVQHFHVVDU\7KLQNDERXWWKHQHJDWLYHIHHOLQJVWKDW
ZHUHSUHVHQWHGWR\RXDWWKHVDPHWLPHWKHEHOLHIVZHUHIRUPHG ,GRWKLQNWKDWWKHVDPHSULQFLSOHFDQEHDSSOLHGKHUH%HWZHHQZKDW
KDSSHQVWRXVDQGWKHPHDQLQJZHJLYHWRWKHHYHQWVZHKDYHWKH
1H[WKHJRHVRQWRH[SODLQWKDWZKHQ\RXJREDFNWRWKHWLPHZKHQWKH IUHHGRPWRLQWHUSUHWHYHQWVKRZZHZLVK
EHOLHIZDVIRUPHGFDQ\RXVHHWKDWWKHUHZDVQRUHDOPHDQLQJLQWKH
HYHQWXQWLO\RXJDYHLWRQH,IWKHVDPHHYHQWKDGKDSSHQHGWRDFRXSOHRI *HWWLQJWRWKH3RLQW
\RXUIULHQGVHYHU\RQHZRXOGKDYHPRUHWKDQOLNHO\LQWHUSUHWHGLWLQ
GLIIHUHQWZD\V)RUH[DPSOHVD\WKHUHZDVDQLQFLGHQWZKHUH\RX ,¶PDVVXPLQJWKDW\RX¶UHRQDMRXUQH\WRVRPHZKHUHLQOLIH3HUKDSV
GHYHORSHGWKHEHOLHI³,¶PQRWJRRGHQRXJK´ZKHQ\RXFDPHKRPH \RX¶UHQRWWKHUH\HW\RX¶UHVWXFNLQ\RXUWKLQNLQJ<RXKDYHDOLPLWLQJ
RQHGD\ZLWK\RXUUHSRUWFDUGIXOORI%¶VDQG\RXVKRZHG\RXUPRPDQG EHOLHIPD\EHLW¶V³,¶PQRWJRRGHQRXJK´PD\EHLW¶V³,GRQ¶W
DOOVKHGLGZDV\HOODW\RXDERXWVRPHWKLQJ:HOOKHU\HOOLQJFRXOGKDYH GHVHUYHLW´³,¶PZHDN,¶OOIDLO´RUVRPHWKLQJRIWKDWVRUW:HOO,
EHHQLQWHUSUHWHGLQPDQ\GLIIHUHQWZD\VDQGKDGQRPHDQLQJWRLW2QH GRQ¶WKDYHWRWHOO\RXWKDWWKHVHEHOLHIVDUHKROGLQJ\RXEDFNIURPWDNLQJ
RI\RXUIULHQGVZRXOG¶YHDVVXPHGWKDW³6KHLVMXVWLQDEDGPRRG´ DFWLRQWROLYH\RXULGHDOOLIHVW\OH,¶GUHFRPPHQGWU\LQJWKHOLQNDWWKH
RQHPLJKW¶YHWKRXJKW³6KHFRXOG¶YHMXVWJRWLQDILJKWZLWKGDG WRSEXWDOVRVWRSSLQJWRWKLQNDERXWZK\\RXFKRVHWKHPHDQLQJLQWKH
DQGKDGEHHQOHWWLQJKHUDQJHURXWRQPH´7KHUHDUHPDQ\ ILUVWSODFH
GLIIHUHQWPHDQLQJVWKDWFRXOG¶YHEHHQGHULYHGIURPWKHHYHQW
%HOLHIVDUHQ¶WIDFWV7KH\DUHQ¶W³WKHWUXWK´:KHQHYHU\RXKDYHDEHOLHI
+RZ<RX&KRRVH WKDWLVKROGLQJ\RXEDFNVWRSDQGDVN\RXUVHOI³LVWKLVWUXH"´$IWHU
VRPHUHIOHFWLRQRIWHQWLPHV\RX¶OOVHHWKDWLW¶VQRW:HRQO\³EHOLHYH´
7KLVLVZKHUH,WXUQHGDZD\IURPWKHSURJUDPDQGKDGWRDVNP\VHOI VRPHWKLQJEHFDXVHZHGRQ¶W³NQRZ´LWIRUDIDFW+RZHYHU\RQH
GHYHORSVEHOLHIVLVNLQGRIGLIIHUHQW7KHVHHYHQWVKDYHQRREMHFWLYH
³:KDWPDNHVDSHUVRQFKRRVHWKHPHDQLQJVWKDWWKH\GR PHDQLQJ:HDVVLJQPHDQLQJWRHYHQWVVRWKDWZHPD\OHDUQDERXWLWDQG
FKRRVH"´³:KDWPDNHVXVDVVLJQPHDQLQJVDQ\ZD\"´ VRWKDWZHFDQSUHGLFWFHUWDLQRXWFRPHVLQFDVHRXUEHKDYLRUSURGXFHV
WKHVDPHHYHQWDJDLQ
,WKLQNWKLVTXHVWLRQLVLPSRUWDQWDVZHOODQGVD\VVRPHWKLQJDERXWD
SHUVRQRQDPXFKGHHSHUOHYHO6LQFHPRVWRIXVSUREDEO\KDYHVRPHVRUW :KHQDQHYHQWKDSSHQVKDSSHQHGDQG\RXGHFLGHGWRJLYHLWD
RIOLPLWLQJEHOLHIV,WKLQNLWGHVHUYHVVRPHGHHSLQWURVSHFWLRQWRJHWWR PHDQLQJZK\GRGLG<28&+226(WKHPHDQLQJWKDW\RXGRGLG"
WKHERWWRPRILWQR" +RZWKHQKDVWKHPHDQLQJHPSRZHUHGRUOLPLWHG\RXDQGDIIHFWHGWKH
UHVWRI\RXUOLIH"
)RUH[DPSOHOHW¶VVD\\RX¶YHMXVWJRWWHQRXWRIDUHODWLRQVKLSDQG\RXUH[
KDGEURNHQXSZLWK\RX1RZWKLVKDSSHQVDOOWKHWLPHEXWHYHU\RQH
ZLOOJLYHLWDGLIIHUHQWPHDQLQJ6RPHSHRSOHPD\WDNHLWSHUVRQDODQGDV
DVLJQWKDW³,¶PQRJRRG´VRPHPD\WDNHLWDVPHDQLQJ³,WMXVW
ZDVQ¶WPHDQWWREH´DQGVRPHPD\WDNHLWDVPHDQLQJWKDW³<HV,
DPXJO\DQGP\SDUHQWVZHUHULJKWQRERG\FDQHYHUORYHPH´
6HHLQJKRZKDUVKKXUWIXODQGGLVHPSRZHULQJVRPHRIWKHVHEHOLHIVFDQ
EHZK\ZRXOGVRPHRQHSLFNWKHP",VLWEHFDXVHZHKDYHDGHVLUHWR
EHOLHYHFHUWDLQEHOLHIVWKDWZH$/5($'<KROGDERXWRXUVHOYHV"
+PPPP«« ZDONVEDFNDQGIRUWKGHOLEHUDWLQJ «MXVWDWKRXJKWEXW,
GRWKLQNVRPHWLPHVZHDOUHDG\KDYHVRPHEHOLHIVVHWLQVWRQHDQGDGRSW
VXSSRUWLQJEHOLHIVWRVWUHQJWKHQWKRVHIRXQGDWLRQV7KDW¶VMXVWP\
WKHRU\EXWZK\DQ\RQHZRXOGZDQWWREHOLHYHEDGWKLQJVDERXW
WKHPVHOYHVEDIIOHVPH
7KH3RZHURI&KRLFH
7KLVLGHDWDNHVPHEDFNWRZKHQ,ILUVWUHDGWKH+DELWVRI+LJKO\

6(7+¶6%/2* 7KHJDLQLQVSHHGSURGXFWLYLW\DQGKDSSLQHVVLVPDVVLYH:KDW¶VPLVVLQJ
LVVRPHSODFHWRJR2QFHVRPHRQHILJXUHVWKDWSDUWRXWWKHRIILFHLV
*RRGE\HWRWKHRIILFH GHDG
-81$0
)DFWRULHVXVHGWREHDUUDQJHGLQDVWUDLJKWOLQH7KDW¶VEHFDXVHWKHUHZDV
RQHVWHDPHQJLQHDQGLWWXUQHGDVKDIW$OOWKHPDFKLQHVZHUHVHWXS 7+(60$573$66,9(,1&20(%/2*
DORQJWKHVKDIWZLWKDEHOWJLYLQJHDFKRIWKHPSRZHU7KHRIILFHQHHGHG
WREHULJKWQH[WWRWKLVEXLOGLQJVRPDQDJHPHQWFRXOGPRQLWRUZKDWZDV 0\)5((6(2DQG.H\ZRUG
JRLQJRQ
5HVHDUFK:HELQDU
\HDUVODWHUZK\JRWRZRUNLQDQRIILFHSODQWIDFWRU\" -81$0
7KDW¶VZKHUHWKHPDFKLQHVDUH
7KDW¶VZKHUHWKHLWHPV,QHHGWRZRUNRQDUH
7KHERVVQHHGVWRNHHSWDEVRQP\SURGXFWLYLW\
7KHUHDUHLPSRUWDQWPHHWLQJVWRJRWR
,W¶VDVRXUFHRIHQHUJ\
7KHSHRSOH,FROODERUDWHZLWKDOOGD\DUHWKHUH
,QHHGVRPHSODFHWRJR ,Q0RQGD\¶VYLGHRSRVW,KLJKOLJKWHGDWRROWKDW,XVHIRUVHDUFKHQJLQH
RSWLPL]DWLRQDQGNH\ZRUGUHVHDUFKFDOOHG0DUNHW6DPXUDL
%XW
:HOOWKHUHVSRQVHWRWKDWYLGHRZDVDPD]LQJ,UHFHLYHGDWRQRIHPDLOV
,I\RXKDYHDODSWRS\RXSUREDEO\KDYHWKHPDFKLQHDOUHDG\LQ DVNLQJIRUPRUHLQIRUPDWLRQDERXW0DUNHW6DPXUDLDQGKRZWRXVHLW,
\RXUKRXVH WKRXJKWPRUHSHRSOHKDGKHDUGRILWEHIRUHEXW,JXHVV,ZDVZURQJ
,I\RXGRZRUNZLWKDNH\ERDUGDQGDPRXVHWKHLWHPV\RXQHHGWR 5DWKHUWKDQXVHXSVHYHUDOEORJSRVWVZULWLQJDERXWGLIIHUHQW6(2DQG
ZRUNRQDUHRQ\RXUODSWRSQRWLQWKHRIILFH NH\ZRUGUHVHDUFKVWUDWHJLHVIRUWKLVRQHVSHFLILFWRROZKLFK,NQRZVRPH
RI\RXDOUHDG\NQRZKRZWRXVHRUMXVWDUHQ¶WWKDWLQWHUHVWHGLQ,
7KHERVVFDQHDVLO\NHHSWDEVRQSURGXFWLYLW\GLJLWDOO\ GHFLGHGWKDW,ZRXOGORYHWRKROGDIUHHZHELQDUIRUWKRVHRI\RXZKR
DUHLQWHUHVWHGLQOHDUQLQJPRUH
+RZPDQ\PHHWLQJVDUHLPSRUWDQW",I\RXGLGQ¶WJRZKDWZRXOG
KDSSHQ" 7KLVZHELQDUZDVQ¶WSODQQHGDWDOOEXW,¶PKRQHVWO\VXSHUVWRNHGDERXW
GRLQJWKLVIRU\RX,¶PDOZD\VUHDOO\H[FLWHGWRWHDFKSHRSOHVWXII
<RXFDQJHWHQHUJ\IURPSHRSOHRWKHUWKDQWKRVHLQWKHVDPH HVSHFLDOO\ZLWKVWXII,NQRZZLOOKHOSWKHPVXFFHHGRQOLQHZLWKWKHLU
FRPSDQ\ EORJVDQGEXVLQHVVHV
2IWKHSHRSOHLQ\RXURIILFHKRZPDQ\GR\RXFROODERUDWHZLWK 7KHZHELQDUZLOOFRYHUDORWRIWKHGLIIHUHQWDVSHFWVRI0DUNHW6DPXDUL
GDLO\" WKDW,MXVWGLGQ¶WKDYHWLPHWRJRWKURXJKLQP\ODVWYLGHR$WWKHVDPH
WLPH,¶OOEHFRYHULQJEDVLF6(2DQGNH\ZRUGUHVHDUFKVWUDWHJLHVWRJR
6RJRVRPHSODFH%XWLWGRHVQ¶WKDYHWREHWR\RXURIILFH DORQJZLWKLW6RHYHQLI\RX¶UHQRWLQWHUHVWHGLQ0DUNHW6DPXUDLEXW
LQWHUHVWHGLQOHDUQLQJPRUHDERXW6(2DQGNH\ZRUGUHVHDUFKWKHQ\RX
,IZHZHUHVWDUWLQJWKLVZKROHRIILFHWKLQJWRGD\LW¶VLQFRQFHLYDEOHZH¶G PD\ZDQWWRFRPHDQGZDWFKWKHZHELQDUWRR
SD\WKHUHQWWLPHFRPPXWLQJFRVWWRJHWZKDWZHJHW,WKLQNLQWHQ
\HDUVWKH79VKRZµWKH2IILFH¶ZLOOEHVHHQDVDTXDLQWDQWLTXH ,WZLOOEHKHOGRQ:HGQHVGD\-XQHUGDWSP367SP
(67,WZLOOEHKRXUORQJDQG,¶OOGRP\EHVWWRFRYHUDVPXFKDV
:KHQ\RXQHHGWRKDYHDPHHWLQJKDYHDPHHWLQJ:KHQ\RXQHHGWR SRVVLEOHZLWKLQWKDWKRXU
FROODERUDWHFROODERUDWH7KHUHVWRIWKHWLPHGRWKHZRUNZKHUHYHU\RX
OLNH 6RLI\RX¶YHSLFNHGXS\RXU)UHH7ULDORUGRZQORDGHGLWDOUHDG\DQGZDQW

WROHDUQPRUHDERXWKRZ0DUNHW6DPXUDLFDQEHXWLOL]HGRU\RX¶UH
WKLQNLQJRIWU\LQJLWRXWEXWZDQWWRZDWFKVRPHRQHHOVHJRWKURXJKLW
ILUVW25LI\RX¶UHMXVWORRNLQJWROHDUQPRUHDERXW6(2DQGNH\ZRUG
UHVHDUFKSOHDVHIHHOIUHHWRUHJLVWHUIRUP\ZHELQDUE\FOLFNLQJWKHOLQN
EHORZ
&OLFN+HUHWR5HJLVWHUIRU3DW¶V0DUNHW6DPXUDL:HELQDU
7KHUHDUHDOLPLWHGDPRXQWRIVSRWVDYDLODEOHVRSOHDVHUHJLVWHUVRRQWR
JHWDVSDFHUHVHUYHGILUVWFRPHILUVWVHUYH,I\RXVHHWKDWWKHUHDUH
QRPRUHVSRWVDYDLODEOH,¶OOGRP\EHVWWRRSHQXSPRUHVSDFHV
7KDQNVDJDLQIRU\RXUVXSSRUWDQG,KRSHWRVHH\RXWKHUH
2KDQGVLQFHWKLVLVP\ILUVWZHELQDU\RXFDQEHVXUH,¶OOEH
GRFXPHQWLQJWKHHQWLUHSURFHVVVR,FDQVKDUHZLWK\RXODWHUH[DFWO\KRZ
\RXFDQGRRQHWRR ,W¶VWKLVNLQGRIZRUOGFKDQJLQJEXVLQHVVEHWWHULQJ\RXFDQGRLWZRUG
RIPRXWKWKDWZH¶OOEHWDONLQJDERXWRQ-XO\WKLQ1HZ<RUNDW:RUGRI
,I\RXKDYHDQ\FRPPHQWVTXHVWLRQVFRQFHUQVUDQWVRU\RXMXVWZDQW 0RXWK6XSHUJHQLXV
WRVD\KL±SOHDVHIHHOIUHHWROHDYHDFRPPHQWEHORZ&KHHUV
%HFDXVHZH¶UHEULQJLQJWRJHWKHUVRPDQ\DPD]LQJPDUNHWHUVZHZDQWHG
&OLFN+HUHWR5HJLVWHUIRU3DW¶V0DUNHW6DPXUDL:HELQDU WRXVHWKHRSSRUWXQLW\WRGRVRPHWKLQJPHDQLQJIXO²VRPHWKLQJZRUOG
FKDQJLQJ6RZH¶UHSDUWQHULQJZLWKFKDULW\ZDWHU²RQHRIRXUIDYRULWH
RUJDQL]DWLRQVDQGRQHRIRXUDPD]LQJSUHVHQWHUVXVLQJWKHSRZHURI
±±±±±±± UHFRPPHQGDWLRQVDQGUHIHUUDOVWREULQJFOHDQVDIHGULQNLQJZDWHUWR
$VDOZD\V,MXVWZDQWHGWRWKDQN\RXIRUVXEVFULELQJ7KLVEORJLVD GHYHORSLQJQDWLRQV
VXFFHVV 8VLQJZRUGRIPRXWKZH¶UHJRLQJWRUDLVHEXLOGWZRZHOOVDQG
IRUHYHUFKDQJHWZRJUHDWFRPPXQLWLHVRQWKHRWKHUVLGHRIWKHZRUOG
WKHFRQYHUVDWLRQ +RZWRJHWLQYROYHG
7KDQN\RXVRPXFK 9LVLWRXUFKDULW\ZDWHUSDJHKWWSP\FKDULW\ZDWHURUJZRP
0\)5((6(2DQG.H\ZRUG5HVHDUFK:HELQDU 0DNHDGRQDWLRQ$GROODUGROODUVDWKRXVDQG²DQ\WKLQJ
(YHU\SHQQ\\RXGRQDWHJRHVGLUHFWO\WRZDUGEXLOGLQJDZHOO$V
OLWWOHDVFDQJLYHRQHSHUVRQFOHDQZDWHUIRU\HDUV
'$01,:,6+,¶'7+28*+72)7+$7
'RQDWH\RXUGLVFRXQWFRGH,I\RX¶UHUHJLVWHULQJIRU:RUGRI
+HOSXVEXLOGWZRZHOOVIRUWZR 0RXWK6XSHUJHQLXVXVLQJDGLVFRXQWFRGH\RXFDQGRQDWHLWWRWKLV
FDXVHZLWKRQHFOLFN
DPD]LQJFRPPXQLWLHV²DQG
7DONDERXWWKLVSURMHFW%ORJLWWZHHWLWSRVWDERXWLWRQ
KHOSVKRZWKHZRUOGZKDWZRUG )DFHERRNWHOO\RXUIULHQGV7KHPRUHSHRSOHLQYROYHGWKHPRUH
FKDQJHZHFDQPDNH
RIPRXWKFDQGR
-8130 $QGLI\RXFDQPDNHLWZH¶GORYHWRVHH\RXDW:RUGRI0RXWK
6XSHUJHQLXVWKLVVXPPHUZKHUH\RX¶OOOHDUQPRUHDERXWKRZZRUGRI
:RUGRIPRXWKFDQFKDQJHWKHZRUOG PRXWKFDQFKDQJH\RXUEXVLQHVV²DQGWKHZRUOG²IRUHYHU
,WPDNHVFRPSDQLHVEHWWHU,WPDNHVLQGXVWULHVEHWWHU,WPDNHVWKH &KHFNRXWWKLVYLGHRWROHDUQPRUHDQGVHHDZKROHEXQFKPRUHRQRXU

ZRUOGEHWWHU FKDULW\ZDWHUSDJH
,WFDQHYHQEXLOGWZRZHOOVLQWZRFRPPXQLWLHVWKDWFDQIRUHYHUFKDQJH
WKHOLYHVRISHRSOH

+HEHFRPHWKHILUVWFRPSDQ\WRILOOWKDWYRLGZKHQ2ULJLQDO
6KDUH :UDSVSDUWQHUHGZLWK0LQLWRFUHDWH0LQL0RWRULQJ
*UDSKLFVDZHEVLWHWKDWPLUURUVWKHORRNDQGIHHORI0LQL¶V
PDLQVLWHEXWZKLFKLVUXQE\6WHPSOHDQGKLVFRPSDQ\DQG
SURYLGHVSHUVRQDOL]DWLRQVHUYLFHVWR0LQLRZQHUVDQG
SURVSHFWLYHEX\HUV+H¶VVLQFHIRUJHGSDUWQHUVKLSVZLWK
0LQL¶VSDUHQWFRPSDQ\%0:DVZHOODV)RUGDQG1LVVDQ
%86,1(6623325781,7,(6:(%/2* 6LQFHODXQFKLQJLQ2ULJLQDO:UDSVKDVVHHQLWVSURILWV
JURZE\SHUFHQWHYHU\\HDU
,W$OO6WDUWHG:LWK$
3KRWRE\2ULJLQDO:UDSV
&HOOSKRQH«
-8130
%86,1(6623325781,7,(6:(%/2*
([SDQG<RXU7KLQNLQJ:LWK
1HZ([SHULHQFHV
-8130
,Q7RP6WHPSOHKDGWKHVRUWRIVWUXFNE\OLJKWQLQJPRPHQWHYHU\
HQWUHSUHQHXUGUHDPVDERXW±RQVWHURLGV6WHPSOH¶VEURWKHUKDGWDNHQKLV
ZLIH¶VFHOOSKRQHWRZRUNE\PLVWDNHUHSRUWV(QWUHSUHQHXU
'URZQLQJLQDVHDRIGUDEEODFNDQGVLOYHUFHOOSKRQHVKDUGO\
GLVWLQJXLVKDEOHIURPRQHDQRWKHU6WHPSOHGHFLGHGWKHUHKDG
WREHDEHWWHUZD\WRSHUVRQDOL]HWKHP2WKHUVKDGWULHGZLWK
VWLFNHUVDQGGHFDOVEXWQRRQHKDG6WHPSOH¶VKLJKWHFK
EDFNJURXQGDQGFRPSXWHUDLGHGGHVLJQVNLOOV
6RZLWKLQDPRQWKRIWKDWFKDQFHSKRQHVZDSKHDQGKLV
EURWKHUVKDGERXJKWDSULQWHUDQGZHUHGHVLJQLQJ
YLQ\OVNLQVFXWVSHFLILFDOO\WRILWFHUWDLQFHOOSKRQHPRGHOV
6XFFHVVPDJD]LQHVXJJHVWVWKDWHDFKPRQWKIRUGD\VLQDURZFRPPLW
7KH6NLQ,WZHEVLWHODXQFKHGLQ1RYHPEHURIDQG WRGRLQJVRPHWKLQJQHZWKDW\RXKDYHWKRXJKWDERXWGRLQJEXWKDYHQRW
UHFHLYHGPRUHWKDQRUGHUVWKHILUVWGD\:LWKLQD\HDU GRQHDQGQRWLFHKRZLWDIIHFWV\RXUOLIH
WKHFRPSDQ\ZDVPRYLQJLQWRDELJJHUVSDFHHYHU\WKUHH
PRQWKVDQGRSHQHGDVHFRQGRIILFHLQWKH8QLWHG6WDWHVDV 6RPHSRVVLELOLWLHVGRDHURELFH[HUFLVHIRUPLQXWHVOLVWHQ
ZHOODVRIILFHVLQ3DULV1HZ=HDODQGDQG&DQDGD WRRQO\SRVLWLYHPXVLFGRQ¶WUHDGWKHQHZVSDSHUVWRS
ZDWFKLQJWHOHYLVLRQHDWRQO\YHJHWDULDQRUUDZIRRGYHUEDOO\
6WHPSOHNQHZWKLVLGHDZRXOGZRUNMXVWDVZHOOLIQRWEHWWHU DSSUHFLDWHDWOHDVWSHRSOHDGD\JHWHLJKWKRXUVRIVOHHS
LQWKHDXWRPRWLYHLQGXVWU\+LVUHVHDUFKUHYHDOHGDVXUSULVLQJ PHGLWDWHIRUPLQXWHVYLVXDOL]H\RXUJRDOVDVDOUHDG\
VLPLODULW\WRWKHHSLGHPLFRIEODQGQHVVKH¶GVHHQMXVWVL[ FRPSOHWHGRPLQXWHVRI\RJDUHDGDVHOIKHOSERRNHYHU\
\HDUVHDUOLHULQWKHFHOOSKRQHLQGXVWU\ PRUQLQJIRUPLQXWHVSODQ\RXUQH[WGD\¶VVFKHGXOHDQG

SULRULWL]HGWRGROLVWEHIRUH\RXOHDYHZRUNGRILYHWKLQJV DQG,QGLD²VROGV\VWHPVWRWKH/LQJTLX&RXQW\
HYHU\GD\WKDWIRUZDUG\RXU1RJRDOVSHQGDQKRXUZLWK JRYHUQPHQWLQ&KLQD¶V6KDQ[L3URYLQFH)U\NPDQH[SHFWVWR
\RXUVSRXVHFDOORQHRI\RXUFKLOGUHQRQWKHSKRQHZULWHD ILOORUGHUVIRURYHUIDUPVWKLV\HDU
KDQGZULWWHQWKDQN\RXQRWHWRVRPHRQHGULQNJODVVHVRI
ZDWHUWDNHDQDSOLVWHQWRDPRWLYDWLRQDO&'RQWKHZD\WR :KLOH'ULSWHFKFXUUHQWO\PDQXIDFWXUHVWKHV\VWHPVLQ
ZRUN &DOLIRUQLDWKHFRPSDQ\SODQVWRVHWXSORFDOSURGXFWLRQOLQHV
QHDUIDUPVRYHUVHDVE\\HDUHQGLQRUGHUWRUHGXFHRSHUDWLQJ
6WDUWWKLVPRQWKDQGGRRQHDFWLYLW\IRUWKHQH[WGD\VLQD DQGVKLSSLQJFRVWV
URZDQGWKHQDVVHVVKRZLWKDVLPSDFWHG\RXUOLIH
3KRWRE\%ORRPEHUJ%XVLQHVV:HHN
3KRWRE\ORFNVWRFNE
%86,1(6623325781,7,(6:(%/2*
%86,1(6623325781,7,(6:(%/2*
,QYHQWLRQ%ORFNV9XYX]HODV
*UHHQ%L]'ULSWHFK
-8130 6RXQG
-8130
,Q3HWHU)U\NPDQDPHFKDQLFDOHQJLQHHULQJVWXGHQWDW6WDQIRUG
8QLYHUVLW\GHVLJQHGDVPDOOSRUWDEOHODVHUPDQXIDFWXULQJV\VWHPWKDW
FRXOGTXLFNO\DQGDFFXUDWHO\SXQFKKROHVLQFKHDSSODVWLFWXELQJWRPDNH 7KHHQGOHVVGURQHRIWKHYX]X]HODVWKHSODVWLFWUXPSHWKDVEHFRPHDQ
DIIRUGDEOHGULSLUULJDWLRQV\VWHPV LQIXULDWLQJDQGLQHVFDSDEOHSUHVHQFHDW:RUOG&XSPDWFKHVDQGWKHLU
JOREDO79EURDGFDVWV*HUPDQLQYHQWRUDQGSURJUDPPHU7RELDV+HUUH
$FFRUGLQJWR%ORRPEHUJ%XVLQHVV:HHNLQ-XQHKHIRXQGHG KDVDVROXWLRQ
'ULSWHFKZLWKRIKLVRZQPRQH\7KH\HDUROGHQWUHSUHQHXU
KDVUDLVHGIURPJUDQWVGRQDWLRQVDQGLQYHVWRUV 7KH$WODQWLF:LUHLVUHSRUWLQJWKDW+HUUHKDVGHYLVHGDZD\WR
ILOWHUWKHDXGLRIURP:RUOG&XSWKURXJKKLVFRPSXWHUDQG
'ULSWHFK¶VVLPSOLILHGV\VWHPVGHVLJQHGIRUIDUPHUVZLWKSORWV XVLQJVRIWZDUHKHVD\VVKRXOGEHFKHDSO\DYDLODEOHWR
VPDOOHUWKDQRQHDFUHGRDZD\ZLWKH[SHQVLYHSDUWV$NLWIRU GUDVWLFDOO\UHGXFHWKHDQQR\LQJYXYX]HODVRXQG
DRQHDFUHIDUPFDQFRVWDIUDFWLRQRIZKDWPDQ\ODUJHU
GULSLUULJDWLRQV\VWHPVFRVW³,WWDUJHWVDPDUNHWVHJPHQWWKDW +HUUHVD\VWKDWKHVWXPEOHGRQWRWKHLGHDIRUKLV³9XYX]HOD
LVQRWDGGUHVVHGE\FRPPHUFLDOGULSLUULJDWLRQ´)U\NPDQ NLOOHU´ZKHQKHUHDOL]HGWKDWDOOYXYX]HODVEX]]DWDERXWWKH
VD\V³,WVFDOHVGRZQWRWKHQHHGVRIVPDOOIDUPHUV´ VDPHIUHTXHQF\%IODWYLEUDWLQJDW+HUW]
7KHFRPSDQ\²ZKLFKKDVHPSOR\HHVLQWKH86&KLQD 3KRWRE\VLHPHQV

FRPSURPLVLQJWKHLUVWDQGDUGV
)URP%XVLQHVV2SSRUWXQLWLHV:HEORJ $QGHYHQWKRXJKLWPD\LQYROYHPRUHHIIRUWDWWKHRQVHW
WDNLQJWLPHWRGRDMREULJKWWKHILUVWWLPHZLOOSD\RIIERWK
SURIHVVLRQDOO\DQGILQDQFLDOO\
³&XWWLQJFRUQHUVIRUVKRUWWHUPJDLQVMXVWLVQ¶WZRUWKLW´
%XUQHWWZDUQHG³8OWLPDWHO\\RXUEXVLQHVVUHVWVRQ\RXU
%86,1(6623325781,7,(6:(%/2* UHSXWDWLRQDQGRQFH\RXWDUQLVKLW\RXPD\QHYHUUHFRYHU
IURPLW´
,V(QWUHSUHQHXUVKLS+DUGHU)RU
/RJRIURP251XUVHV,QF
:RPHQ"
-8130
$FFRUGLQJWR7KH&RPPHUFLDO$SSHDOWKHSDWKWRHQWUHSUHQHXUVKLSLVD
KDUGHURQHWRWDNHIRUZRPHQWKDQLWLVIRUPHQ:LWKYDULRXVJHQGHU
REVWDFOHVWRIDFHPDQ\ZRPHQVLPSO\ILQGWKDWWKH\FDQQRWJHWDVIDUDV
WKH\ZRXOGOLNH
$OWKRXJK'HQLVH%XUQHWWORYHVKHUUROHDVOHDGHURIRQHRIWKH
ODUJHVWIHPDOHRZQHGEXVLQHVVHVLQWKHUHJLRQVKH¶VTXLFNWR
QRWHWKDWEHLQJWKHERVVLVRIWHQDORQHO\MRE
,QDGGLWLRQWRWKHLQKHUHQWVWUXJJOHVRIVWDUWLQJDEXVLQHVV
IHPDOHHQWUHSUHQHXUVRIWHQIDFHJHQGHUEDVHGREVWDFOHVWKDW
PDNHUXQQLQJDVXFFHVVIXOFRPSDQ\HYHQPRUHGLIILFXOW
,QVWHDGRIEHFRPLQJRYHUZKHOPHGE\WKHRGGV%XUQHWWVDLG
ZRPHQVKRXOGWDFNOHFKDOOHQJHVZLWKLQWHJULW\
SURIHVVLRQDOLVPDQGDFRPPLWPHQWWRH[FHOOHQFH
6KHVSHDNVIURPH[SHULHQFHDVWKHSUHVLGHQWRI251XUVHV
,QFDVPDOORXWILWVKHMRLQHGLQDPRQWKDIWHULWZDV
HVWDEOLVKHGE\KHUODWHEXVLQHVVSDUWQHU&DURO3DWHUVRQ$IWHU
3DWHUVRQ¶VGHDWKIURPRYDULDQFDQFHULQ%XUQHWW
DVVXPHGRZQHUVKLSRIWKHFRPSDQ\DQGJXLGHGLWWRD
QDWLRQDOSUHVHQFH
³$VDIHPDOHLQWKHEXVLQHVVZRUOGLWFDQEHGLIILFXOWVWDUWLQJ
RXWDQGWKHUHPD\EHWKRVHDORQJWKHZD\ZKRWHOO\RXWKDW
\RXFDQ¶WGRLWWKDW\RXZRQ¶WVXFFHHG´%XUQHWWVDLG
7KXUVGD\DWWKHPRQWKO\PHHWLQJRIWKH6RFLHW\RI
(QWUHSUHQHXUV³7KHUHZLOOEHWLPHVZKHQ\RX¶OOKDYHWRVWDQG
XSIRU\RXUVHOIDQGEHOLHYHLQ\RXUDELOLWLHVZKLFKFDQEH
GDXQWLQJLI\RX¶UHLQDPDOHGRPLQDWHGLQGXVWU\´
7RIDFLOLWDWHVXFFHVV%XUQHWWHVDLGHQWUHSUHQHXUVPXVWEH
ZLOOLQJWRZRUNKDUGHUWKDQHYHU\RQHHOVHZLWKRXW

-XQH
7RGD\·V7DEEORLG
%86,1(6623325781,7,(6:(%/2* PHPEHUV
&RQQHFWLQJ:LWK<RXU :KDWLQVSLUHGLW"
&RPPXQLW\2QOLQH 2YHUWKH\HDUV6RIYXHKDVKHOSHGKXQGUHGVRIFOLHQWVUHDFK
-81$0 WKHWRSRIWKH,QWHUQHWVHDUFKODGGHUXVLQJFRPSOH[6(2DQG
33&SURFHVVHVEXWLQPDQ\LQVWDQFHVFRPSDQLHVKDGWR
WKURZODUJHDPRXQWVRIPRQH\DWWKHSUREOHPWRPDNHLW
ZRUN$GYHUWLVLQJDEXVLQHVVRQOLQHVKRXOGQRWEHDQ
H[SHQVLYHHQGHDYRU7KLVZDVRXULQVSLUDWLRQWRFUHDWHD
VLPSOHHDV\WRXQGHUVWDQGFRPPXQLW\SRUWDOWKDWDOORZVD
ORFDOFRPSDQ\WRHIIHFWLYHO\PDUNHWWKHPVHOYHVRQOLQHIRU
IUHH6KRXOGDEXVLQHVVRZQHUGHFLGHWRH[SDQGWKHLU
DGYHUWLVLQJHIIRUW&LW\&RQQHFWRIIHUVDGYHUWLVLQJWLOHVDQG
SUHPLXPNH\ZRUGVEXWDWDIUDFWLRQRIWKHFRVWRIELJFLW\
RIIHULQJV
$Q\RQHZKRKDVHYHUVXUIHGWKHZHEXVHGDFRPSXWHURUHYHQSXUFKDVHG
DVPDUWSKRQHSUHWW\PXFKNQRZVZKDWDQDSSLV7KH\¶UHHYHU\ZKHUH +RZFDQLWKHOSEXVLQHVVRZQHUV"
$SSOLFDWLRQVFDQEHDJDPHVLPSOLI\SXUFKDVHVRUUHSODFHSDSHUZKHQ
\RXQHHGWRMRWGRZQDTXLFNQRWH+RZHYHULWLVWKHPLQGEHKLQGWKRVH &LW\&RQQHFWKHOSVEXVLQHVVRZQHUVHOLPLQDWHWKHLUVHDUFK
DSSVWKDW\RX¶OOILQGPRVWLQWHUHVWLQJ HQJLQH6(2DQG33&EXGJHWV,WDOVRDOORZVDEXVLQHVVRZQHU
WRFUHDWHDXQLTXHEXVLQHVVSURILOHDQGLPPHGLDWHO\EHLQJ
:KLOHXVLQJWKDWVLPSOHDSSRQ\RXUFRPSXWHURUSKRQHPLJKWVHHPHDV\ PDUNHWLQJWKHLUSURGXFWVDQGVHUYLFHVIRUIUHHZKLOH
HQRXJKWKHZRUNWKDWZHQWLQWRFUHDWLQJLWIRU\RXZDVQ¶WQHDUO\DV SURYLGLQJYLVLWRUVLQWXLWLYHVHDUFKFRQWUROVWKDWDOORZD
VLPSOH:HUHFHQWO\VSRNHZLWK-RKQ7RPEOLQWKHRZQHURI6RIYXH EXVLQHVVWREHIRXQGTXLFNO\EXWZLWKRXWDOOWKHVHDUFKUHVXOW
DERXWWKHDSSVSURGXFHGE\KLVRZQFRPSDQ\DQGWKHZRUNWKDWJRHV MXQN\RXILQGRQRWKHUVHDUFKSRUWDOV$VFRQVXPHUVFRPHWR
LQWRWKHP XQGHUVWDQGWKHYDOXHRIWKHSRUWDOEXVLQHVVHVFDQHOLPLQDWH
WKHLUORFDOZHEVLWHDQGSXWWKRVHGROODUVLQWRRWKHUDUHDVRI
7HOOXVDOLWWOHDERXW\RXUFRPSDQ\6RIYXHDQGZKDW\RXGR WKHEXVLQHVV%XVLQHVVRZQHUVFDQDOVRDVNVDWLVILHG
FXVWRPHUVWRSRVWUHYLHZVDERXWWKHLUSURGXFWVDQGVHUYLFHV
6RIYXHLVDVRIWZDUHGHYHORSPHQWILUPZKRVHIRFXVLV ZKLFKDUHWKHQDFFHVVLEOHWRRWKHUYLVLWRUV7RSSHUIRUPLQJ
GHVLJQLQJDQGEXLOGLQJVKULQNZUDSVRIWZDUHSURGXFWV,Q FRPSDQLHVFDQEHFRPHD723%XVLQHVVRUPDNHDUHTXHVW
DGGLWLRQDOWRGHYHORSLQJRXURZQSURGXFWVZHDOVRRIIHU WREHFRPHD)HDWXUHG%XVLQHVVRIWKH:HHN
FXVWRPGHYHORSPHQWVHUYLFHVDQGKDYHEXLOWKXQGUHGVRIH
FRPPHUFH(53&06JRYHUQPHQWDODQGQRQSURILW 'R\RXKDYHDQ\RWKHUDSSOLFDWLRQVSXEOLVKHG"
DSSOLFDWLRQVIRUVPDOODQGPLGVL]HGEXVLQHVVHV
6RIYXHKDVSXEOLVKHGKXQGUHGVRI,QWHUQHWDSSOLFDWLRQVLQ
:KDWLV&LW\&RQQHFWDQGZKDWGRHVLWGR" ERWKWKHSXEOLFDQGSULYDWHVHFWRU
&LW\&RQQHFWLVDZHEEDVHGFRPPXQLW\SRUWDOIRUVPDOOHU 0LJKWZHVHHDQ\QHZDSSVWKHQHDUIXWXUH"&DUHWRJLYHXVD
FRPPXQLWLHV2QFHLQVWDOOHGLQDORFDOFRPPXQLW\WKH OLWWOHKLQW"
VRIWZDUHDOORZVEXVLQHVVHVWREUDQGWKHPVHOYHVIRUDIUDFWLRQ
RIWKHFRVWWKH\ZRXOGSD\XVLQJRWKHUVHUYLFHV/RFDO $QHZDSSOLFDWLRQFRPLQJLQ4RILVµ5HDO9LHZ¶DQ
EXVLQHVVHVFDQMRLQIRUIUHHDQGFUHDWHDIUHHEXVLQHVVSURILOH ,QWHUQHW$SSOLFDWLRQGHVLJQHGVSHFLILFDOO\IRUUHDOHVWDWH
2QFHWKH\KDYHVLJQHGXSWKH\FDQSRVWQHZVFODVVLILHGDGV EURNHUDJHFRPSDQLHVZKRZDQWWRKDUQHVVWKH,QWHUQHWDQG
MREVDQGSROOLQJTXHVWLRQVIRUIUHH0HPEHUVFDQWKHQ EHWWHUPDUNHWWKHLUUHVLGHQWLDODQGFRPPHUFLDOOLVWLQJV:H
PDQDJHWKHLURQOLQHSUHVHQFHWKURXJKWKH0HPEHU DOVRSODQWRUHOHDVHµ:LUH$WODV¶LQ:LUH$WODVKDVEHHQ
0DQDJHPHQW&HQWHUDQDFFRPSDQ\LQJSRUWDOH[FOXVLYHO\IRU LQGHYHORSPHQWIRUWKUHH\HDUV:KHQFRPSOHWHLWZLOODOORZ

DQ\RQHZLWKDFRPSXWHUPRXVHDQGLGHDWRGHVLJQVSHF
VFRSHDQGZLUHIUDPHWKHLURZQVRIWZDUH)RUODUJHSURGXFWV 817(03/$7(5
:LUH$WODVZLOOIDFLOLWDWHSURWRW\SLQJDOORZLQJWKHGHVLJQHUWR
GHPRQVWUDWHWDVNVDQGSURYHWKHVROXWLRQEHIRUHDVLQJOHOLQH 8QSURGXFWLYLW\±7KH
RIFRGHLVHYHUZULWWHQ:LUH$WODVZLOOEHZLGHO\XVHGE\
GHYHORSPHQWILUPVEXWZLOODOVRKDYHDQLFKHPDUNHWDVD $QLPDWLRQ
FRQVXPHUSURGXFWIRUWKHHQWUHSUHQHXU -81$0
+RZORQJKDYH\RXEHHQPDNLQJVRIWZDUHDSSOLFDWLRQV"
$VWKHIRUPHU,7'LUHFWRUIRUD)RUWXQHFRPSDQ\,ZDV
UHVSRQVLEOHIRUWKHGHSOR\PHQWRIQXPHURXVVRIWZDUH
VROXWLRQVVHUYLQJWKRXVDQGVRIEUDQFKORFDWLRQVDFURVVWKH
8QLWHG6WDWHVDQGRYHUVHDVERWKHQWHUSULVHDQG,QWHUQHW
EDVHG3ULRUWRP\VL[\HDUVLQFRUSRUDWH$PHULFD,VSHQW
DQRWKHUWHQ\HDUVGHVLJQLQJDQGEXLOGLQJGDWDEDVHV\VWHPV
VSHFLILFWRWKHUHDOHVWDWHDQGDSSUDLVDOLQGXVWU\ZKHUH,
GHVLJQHGDQGEXLOWQXPHURXVDXWRPDWHGDSSUDLVDOWRROVXVHG
LQWKHLQGXVWU\
:KDWDUHVRPHOHVVRQVWKDW\RXUEXVLQHVVKDVWDXJKW\RX"
7KHOHVVRQVFRQWLQXHEXWWKUHHVWDQGRXW)LUVWQRRQHFDQ
7KLVDQLPDWLRQLVDVDUFDVWLFORRNDWRXUH[FHVVLYHSUHRFFXSDWLRQZLWK
SUHGLFWWKHHFRQRP\$IWHUOLVWHQLQJWRRSWLPLVWVSHVVLPLVWV
SURGXFWLYLW\:HVRPHWLPHVIRFXVRQHIILFLHQF\WRWKHGHWULPHQWRIRXU
DQGVXSSRVHGJRYHUQPHQWH[SHUWVIRUWKHSDVWWKLUW\\HDUV
RZQKHDOWKDQGKXPDQLW\:KDWDERXWVSHQGLQJWLPHZLWKDQGFDULQJ
,¶YHOHDUQHGWRMXVWNHHS\RXUQRVHWRJULQGVWRQHNHHS
DERXWUHDOSHRSOH"&UHDWLYLW\LVQRWDVFDUFHLQSXWWREHPD[LPL]HG
EXLOGLQJ\RXUEXVLQHVVDQGDOZD\VFRQWLQXHPDUNHWLQJ\RXU
+XPDQVQHHGVODFNWLPHWRWKLQNDQGFUHDWH
EUDQG,IWKHVHVRFDOOHGµH[SHUWV¶UHDOO\NQHZZKDWZDVJRLQJ
WRKDSSHQZK\DUHWKH\VWLOOZRUNLQJ"6HFRQGZKDWJRHVXS
ZLOOGHILQLWHO\FRPHEDFNGRZQ0DUNHWVHEEDQGIORZ:KHQ
KLULQJSHRSOHDVN\RXUVHOILI\RXFDQUHDOO\SD\WKDWSHUVRQ
IRUWKHQH[W\HDULI\RXUEXVLQHVVKDGQRQHZVDOHVIRUWKH
QH[WVL[PRQWKV/DVWO\KLUHSHRSOHQRWVNLOOV,OHDUQHGD
ORQJWLPHDJRWKHUHDUHSOHQW\RISHRSOHPXFKVPDUWHUWKDQ, 6(7+¶6%/2*
DP,KLUHSHRSOHZLWKSDVVLRQGHVLUHFRPPRQVHQVHDQGD
VWURQJZRUNHWKLF7KHUHVWFDQEHWDXJKW $PSOLI\LQJWKHOL]DUGEUDLQ
-81$0
$Q\WLSVWKDW\RX¶GOLNHWRRIIHUIHOORZDSSGHVLJQHUVWKDWDUH
MXVWJHWWLQJVWDUWHG" 1RWVXUHZK\\RXZRXOGZDQWWRUHLQIRUFHWKHQRLVHLQ\RXUKHDGWKDW
WHOOV\RXQRWWRVSHDNXSVWDQGRXWDQGGRZRUNWKDWPDWWHUVEXWLI\RX
,I\RX¶UHMXVWJHWWLQJVWDUWHGLQDSSOLFDWLRQGHYHORSPHQW,¶OO GRDVXUHILUHZD\WRGRLWLVWRIRFXV\RXUDWWHQWLRQRQHYHU\SLHFHRI
RIIHUWZRWLSV)LUVWOHDUQWKHUXOHZKLFKVLPSO\VWDWHV QHJDWLYHIHHGEDFNLQ\RXUHQYLURQPHQW2UWRLPDJLQHHYHU\SRVVLEOH
WKDWDWWKHH[DFWPRPHQW\RXEHOLHYH\RX¶UHGRQHLVWKH GLVDVWHUWKDWFRXOGEHIDOO\RXDQGWRGRLWUHSHDWHGO\2UWRFDUHIXOO\
VDPHH[DFWPRPHQW\RXZLOOUHDOL]H\RXKDYHPRUHWR VWXG\DQRQ\PRXVFRPPHQWVWZHHWVDQGRQOLQHUHYLHZVIURPSHRSOHZKR
EXLOG6HFRQGO\JRUHDG³'HVLJQWKH2EYLRXVÉ\5REHUW GRQ¶WOLNHWKHZRUN\RX¶UHGRLQJ2UIRFXVRQWKHRQHSDUDJUDSKLQ\RXU
+RHNPDQ-U+HVSHDNVWKHWUXWKDERXWGHYHORSPHQWWKH DQQXDOUHYLHZFDOOHGµZHDNQHVVHV¶2UVSHQGWKHGD\WKLQNLQJDERXWWKH
FOLHQWDQG\RX RQHVOLSRIWKHWRQJXH\RXPDGHWKLVPRUQLQJ
<RXFDQOLVWHQWR\RXUFXVWRPHUVPXUPXUDERXW\RXRQOLQHH[FHSWWKDW
SOHDVHGFXVWRPHUVWHOODIHZSHRSOHDQJU\RQHVWHOOHYHU\RQH6RLW¶V
)URP%XVLQHVV2SSRUWXQLWLHV:HEORJ UHDOO\HDV\WRPLVLQWHUSUHWDIHZDVDGHOXJH
2QWKHRWKHUKDQGRQFH\RXDFFHSWWKDWWKLVLVVHOIVDERWDJLQJEHKDYLRU
\RXPLJKWFKRRVHWRGHOLEHUDWHO\LJQRUHLQWHUDFWLRQVWKDWDPSOLI\WKH

YHU\QRLVH\RX¶UHWU\LQJWRDYRLG %86,1(6623325781,7,(6:(%/2*
7KH'HPRFUDF\2I0DNLQJ$QG
'$01,:,6+,¶'7+28*+72)7+$7 6HOOLQJ7KLQJV
-8130
+RZWRZRUNZLWKRQOLQH
UHYLHZV²OLYH:RUGRI0RXWK
6XSHUJHQLXVSUHYLHZZLWK<HOS¶V
.HYLQ/HH
-8130
$FFRUGLQJWR&KULV$QGHUVRQ:LUHG0DJD]LQH¶VHGLWRULQFKLHIDWRPV
DUHWKHQHZELWV²DQGEHFDXVHRIWKLVZHDUHRQWKHEULQNRIWKHQH[W
LQGXVWULDOUHYROXWLRQ
,W¶VKDSSHQLQJLQKDFNHUVSDFHVDFURVVWKHFRXQWU\ZKHUH
LQYHQWRUVDUHQ¶WMXVWEXLOGLQJSURWRW\SHVEXWWDNLQJWKHLU
LQYHQWLRQVGLUHFWO\WRPDUNHWIRUHJRLQJWKHWUDGLWLRQDO
IDFWRU\
:H¶UHEULQJLQJWRJHWKHUDPD]LQJPDUNHWHUVIRU:RUGRI0RXWK 7KHRSHQVRXUFHPRYHPHQWLVFDWFKLQJRQZLWKKDUGZDUH
6XSHUJHQLXV7KH³+RZWREH*UHDWDW:RUGRI0RXWK0DUNHWLQJ´ KDFNHUVZKRZDQWDQ\RQHWREHDEOHWREXLOGDQGGHVLJQWKHLU
&RQIHUHQFHLQ1HZ<RUNRQ-XO\7KHGD\ZLOOIHDWXUHKRZWR RZQIXUQLWXUHWRROVRUHYHQFDUV
FODVVHVUHDOZRUOGFDVHVWXGLHVDQGEULOOLDQWDXWKRUV<RX¶UHJRLQJ
WROHDUQSUDFWLFDOKDQGVRQWHFKQLTXHVWRJHWSHRSOHWDONLQJDERXW\RX ³'HPRFUDWL]LQJWRROVRIFUHDWLRQDOORZVLQGLYLGXDOVWREHDEOH
WKHQH[WGD\ WRGRH[WUDRUGLQDU\WKLQJVEHFDXVHWKHWRROVDUHFKHDSDQG
HDV\DQGDYDLODEOHWRDOO´$QGHUVRQH[SDQGLQJRQD
$VSUHYLHZVZH¶UHVKDULQJDEXQFKRILQWHUYLHZVZLWKRXUIDQWDVWLF VLJQDWXUHWKHPHWROGDQDXGLHQFHDWWKH:LUHG
VSHDNHUV2XUOLQHXSLQFOXGHV<HOS¶V.HYLQ/HH.HYLQZLOOEHWHDFKLQJ %XVLQHVV&RQIHUHQFH³$Q\ERG\FDQSXEOLVKDQ\ERG\FDQ
WKHFODVV³+RZWR:RUNZLWK2QOLQH5HYLHZV´DQGRIIHUHGDIHZWLSVRQ PDQXIDFWXUHDQGWKDW¶VKRZ\RXLQVSLUHDQLQGXVWULDO
KRZWRGRLWLQKLVSUHYLHZLQWHUYLHZ UHYROXWLRQ´
$QGFKHFNRXWRXU<RX7XEHSDJHWRVHHDOORIRXUVSHDNHULQWHUYLHZV +DFNHUVSDFHVDUHWKH³VHHGVRIWKHQH[WLQGXVWULDO
UHYROXWLRQ´VDLG$QGHUVRQ)RUDPRQWKPHPEHUVKLS
KDFNHUVJHWIXOODFFHVVWRWKHWRROVRIWKHWHFKVKRS0RUH
6KDUH LPSRUWDQWO\WKH\JHWDFRPPXQLW\
%UH3HWWLVFRIRXQGHURI0DNHUERW,QGXVWULHVLVDOHDGHULQ
WKH+DFNHUVSDFHUHYROXWLRQ+HVHOOVGRLW\RXUVHOI'

SULQWHUVFDOOHG0DNHUERWVIRUDERXWHDFK+LVEROG
YLVLRQLVWKDW³1RERG\ZLWKD0DNHUERWZLOOHYHUKDYHWREX\D
ERWWOHRSHQHUDJDLQ´KHGHFODUHGSXOOLQJRXWKLVRZQKRPH
PDGHRUDQJHRSHQHUIURPKLVSRFNHW

3KRWRE\NJDUDJHVFRP $FFRUGLQJWR%ORRPEHUJ%XVLQHVV:HHN*OREDO&\FOH6ROXWLRQVPDNHV
JDGJHWVWKDWOHWIDUPHUVLQWKHGHYHORSLQJZRUOGXVHELF\FOHVWRVKHOO
PDL]HRUFKDUJHPRELOHSKRQHV
)URP%XVLQHVV2SSRUWXQLWLHV:HEORJ -RGLH:XFRQFHLYHGWKHLGHDLQZKLOHDVWXGHQWDW0,7¶V
'/DEZKLFKLQFXEDWHVWHFKQRORJLHVIRUGHYHORSLQJ
FRXQWULHV6KHDQGVL[FRIRXQGHUVODXQFKHGWKHEXVLQHVVLQ
ZLWKIURPDQ0,7EXVLQHVVSODQFRPSHWLWLRQ
DQGIURPDQJHOLQYHVWRUV
%86,1(6623325781,7,(6:(%/2* 7KHFRPSDQ\¶VGHYLFHVHDFKDWWDFKWRWKHEDFNRIDELF\FOH
DQGPDNHXVHRISHGDOLQJSRZHU*OREDO&\FOH6ROXWLRQV
&DUGERDUG0HFKDQLFV EHJDQPDQXIDFWXULQJSURGXFWVLQ7DQ]DQLDODWHODVW\HDUDQG
-8130 :XVD\VVKHH[SHFWVWRH[SDQGSURGXFWLRQWR&KLQDRU
,QGLD
³&DUGERDUG0HFKDQLFV´LVDQDUWLQVWDOODWLRQFUHDWHGE\IRXUVWXGHQWVDW
WKH8WUHFKW6FKRRORI$UWDQG7HFKQRORJ\LQWKH1HWKHUODQGV 6KHDOVRSODQVIXUWKHUELNHSRZHUHGDWWDFKPHQWVLQFOXGLQJ
RQHWRJULQGFRUQLQWRIORXU³:HDUHFUHDWLQJWHFKQRORJLHV
,WLVDFORFNZRUNPDFKLQHEXLOWRXWRIFDUGERDUGDQGFRQWUROOHGE\DQ WKDWKHOS«IDUPHUVWDNHWKHLUILUVWVWHSRXWRISRYHUW\
DUGXLQR ZLWKRXWDQ\GHSHQGHQF\RQHOHFWULFLW\RUIXHO´:XVD\VLQDQ
HPDLOIURP7DQ]DQLD
<RXFDQYLHZPRUHYLGHRVRIWKHPDFKLQHKHUH
%HFDXVHDOODFXVWRPHUQHHGVLVDELF\FOH:XVD\V³WKHUHDUH
YLD1HDWRUDPD QREDUULHUVWRWKHVFDODELOLW\DQGIOH[LELOLW\LQWKHIXWXUH
SURGXFWVWRFRPH´
3KRWRE\*OREDO&\FOH6ROXWLRQV
%86,1(6623325781,7,(6:(%/2*
*UHHQ%L]*OREDO&\FOH
%86,1(6623325781,7,(6:(%/2*
6ROXWLRQV
-8130 $'LIIHUHQW.LQG2I+RFNH\
-8130
&791HZV
7KH1DWLRQDO+RFNH\/HDJXHSOD\RIIVHQGWKLVZHHNDQG
\HDUROGHQWUHSUHQHXU-XKD0LNNRODKRSHVWRFRQWLQXH
PDNLQJLQURDGVLQ&DQDGD¶VKRFNH\PDGFXOWXUHE\VHOOLQJ

IORRUEDOODVDQRIILFHDFWLYLW\WKDWKHOSVSOD\HUVLPSURYHWKHLU %86,1(6623325781,7,(6:(%/2*
VNLOOV
:RUOG¶V*UHDWHVW6DOHVSHUVRQ"
1+/VWDUVVXFKDV+HQULNDQG'DQLHO6HGLQJUHZXSSOD\LQJ -8130
WKLV(XURSHDQYHUVLRQRIIORRUKRFNH\WKHVHFRQGUDQNHG
VSRUWEHKLQGVRFFHULQ6ZHGHQ,W¶VDOLPLWHGFRQWDFWVSRUW
ZKLFKPHDQVIHZHULQMXULHVDQGLW¶VUHODWLYHO\LQH[SHQVLYHWR
EX\HTXLSPHQWDQGUHQWIDFLOLWLHV
,WFDQEHSOD\HG\HDUURXQGRQMXVWDERXWDQ\J\PIORRU
%XW0U0LNNROD¶VOREE\LQJLVQRWKLVHQGJRDO%\KHOSLQJWR
UDLVHWKHSURILOHDQGSRSXODULW\RIWKHVSRUWKHSODQVWR
LQFUHDVHGHPDQGIRUWKHIORRUEDOOHTXLSPHQWKLV7RURQWR
EDVHGFRPSDQ\)ORRU%DOO3UR,QFLPSRUWVDQGGLVWULEXWHV
VXFKDVVWLFNVDQGWKHIORZEDOOZKLFKFDQEHILUHGDWXSWR
NLORPHWUHVDQKRXU+LVVXSSOLHUIRUPHU7RURQWR0DSOH
/HDIVVWDU%RUMH6DOPLQJRZQVRQHRIWKHZRUOG¶VODUJHVW
PDQXIDFWXUHUVRIIORRUEDOOHTXLSPHQWDQGDFFHVVRULHV $)ORULGDVDOHVPDQLVKRSLQJWKHURDGWRKLVVXFFHVVLVSDYHGLQVLPSOH
UHGEULFNV
³:H¶UHWKHLPSRUWHUDQGPDUNHWHUIRUWKHSURGXFWEXWDORWRI
WKHVDOHVJRWKURXJKRWKHUFRPSDQLHVVXFKDV0DUFKDQW¶V 1H[WZHHN(ULF3ROLQVZLOOYLHWREHFRPHWKH³:RUOG¶V*UHDWHVW
6FKRRO6SRUW/WGDQG7/LW]HQ6SRUWV/WGZKLFKVHOOWR 6DOHVSHUVRQ´DFRQWHVWSXWRQE\$GJLDQW2JLOY\2QHWRVHHZKRFDQ
VFKRROV´0U0LNNRODVDLG³7KHVHFRPSDQLHVDUHRXWWKHUH FRPHXSZLWKWKHPRVWFRQYLQFLQJVDOHVSLWFKIRUDQDUJXDEO\KXPGUXP
SURPRWLQJWKHVSRUWDVZHOOPRVWO\LQWKHVFKRROV\VWHP´ SURGXFW±DSODLQROGUHGEULFN
)RU0U3RZHUVWKHILQDOVWHSLQPDNLQJIORRUEDOOD 7KH6W3HWHUVEXUJ7LPHVVD\V3ROLQV¶VWUDWHJ\LVWRFDVWWKHEULFNDV
SHUPDQHQWIL[WXUHRQWKH&DQDGLDQVSRUWVVFHQHLV VRPHWKLQJHYHU\RQHQHHGVDJRRGOXFNFKDUP
JRYHUQDQFHWKHHVWDEOLVKPHQWRIQDWLRQDODQGSURYLQFLDO
DVVRFLDWLRQVWKDWZLOOKHOSVHWXSDQGUXQFKDPSLRQVKLSOHYHO +HUH¶VWKHYLGHRRI3ROLQV¶IXQQ\SLWFK&OLFNKHUHWRVHHYLGHRVPDGHE\
FRPSHWLWLRQV WKLV\HDU¶VRWKHUFDQGLGDWHV
)ORRUEDOO¶VVXFFHVVWRGDWHKDVSULPDULO\FRPHDWWKHKLJK 3KRWRE\(ULF3ROLQV
VFKRROOHYHOZLWKPRUHWKDQVFKRROVDFURVV&DQDGD
RIIHULQJLWDVDQLQWUDPXUDOVSRUWWKDWERWKER\VDQGJLUOVFDQ
SOD\0U0LNNRODKDVHVWDEOLVKHGUHODWLRQVKLSVZLWKUHWDLOHUV
VXFKDV6RXUFHIRU6SRUWVLQDGGLWLRQWRJHQHUDWLQJVDOHV )URP%XVLQHVV2SSRUWXQLWLHV:HEORJ
WKURXJKKLVZHEVLWH
/RJRIURP)ORRUEDOO3UR,QF

%86,1(6623325781,7,(6:(%/2* :KDWHYHUWKHLUUHDVRQVVWLWFKLQJDQGVHZLQJWKHZRPHQ
GLVFRYHUHGVRPHWKLQJPRUH,WKHOSHGIXOILOOWKHLUFUHDWLYH
.LGGLH&RXWXUH GHVLUHV
-8130
3KRWRIURP,WW\%LWW\/\GL
%86,1(6623325781,7,(6:(%/2*
&DQ7HOHFRPPXWLQJ3XW7KH
%UDNHV2Q<RXU&DUHHU"
-8130
:KHWKHUWKHLUFKLOGZDQWVWREHDSULQFHVVRUGDQFHOLNHDEDOOHULQDD
YDULHW\RIPRPVDUHFUHDWLQJFORWKLQJIRUWKHLUNLGVDQGVHOOLQJLWWR\RX
WRRUHSRUWV$UJXV/HDGHUFRP
6LQFHVKRUWO\DIWHU/\GLDZDVERUQVKH¶VEHHQPDNLQJKHU
WXWXVKDWVDQGKHDGEDQGV³6KHKDVDORWRIIULOO\VWXIIQRZ´
>6WDFH\@6FKXPDFKHUDGPLWV
%XWLW¶VQRWMXVWDOOVZLUO\WZLUO\DQGJLUO\IXQ6FKXPDFKHU¶V
KDQGLZRUNKDVEHFRPHDEXUJHRQLQJEXVLQHVVIRUKHUVHOI
VHOOLQJ,WW\%LWW\/\GLEUDQGHGFUHDWLRQVWRRWKHUVYLDWKH
,QWHUQHWDQGORFDOVWRUHVOLNH(OHJDQW0RPP\$QGVKH¶VQRW
DORQH0RUHDQGPRUHPRPVDUHGHVLJQLQJDQGVHOOLQJ
³NLGGLHFRXWXUH´±QRWRQO\WRRXWILWWKHLURZQNLGVEXWWR
IXOILOODQXQWDSSHGFUHDWLYHSRWHQWLDODQGHQWUHSUHQHXULDO
GUHDPV
:RUNLQJIURPKRPHPD\UHGXFHFRPPXWHWLPHVDYHPRQH\DQGVKULQN
/LNH6FKXPDFKHU.DUHQ7HOOHUVWDUWHGWUDQVIRUPLQJIDEULF
DQHPSOR\HH¶VFDUERQIRRWSULQW%XWLWFDQDOVREHDKD]DUGWRFDUHHU
ULEERQDQGULFNUDFNLQWRWXWXVDQGHPEHOOLVKHGVKLUWVILUVW
DGYDQFHPHQWDQHZVWXG\VKRZV
IRUKHUGDXJKWHU3DLVOH\
)XWXULW\UHSRUWVWKDW,QDSDLURIVWXGLHV²RQHLQYROYLQJLQGHSWK
³7KH\¶UHIXQ7KH\¶UHHDV\WRPDNHDQGIXQ´WKH6LRX[)DOOV
LQWHUYLHZVZLWKRIILFHZRUNHUVDQGDQRWKHUXVLQJDEHKDYLRUDO
ZRPDQVD\VRIWKHFORWKLQJOLQHVKH¶VGXEEHG6SRRO
H[SHULPHQW².LPEHUO\(OVEDFKSURIHVVRULQWKH*UDGXDWH6FKRRORI
0DQDJHPHQWDW8QLYHUVLW\RI&DOLIRUQLD'DYLVDQGFROOHDJXHVIRXQGWKDW
+ROO\+HUEHUVJRWKHUVWDUWZKHQVKHQHHGHGDEDE\JLIWIRU
EHLQJSUHVHQWDWWKHZRUNSODFHJLYHVDQHPSOR\HHDQLPSRUWDQWHGJH
KHUVLVWHU³6R,VWDUWHGVHZLQJEODQNHWVWKHQKDLUFOLSVKDWV
KHDGEDQGVWXWXVFDUVHDWFRYHUVDQGPRUH´6KRUWO\
:KHQERVVHVDQGFRZRUNHUVVHHDQHPSOR\HHDWZRUNWKH\WHQGWRWKLQN
WKHUHDIWHUKHUEXVLQHVV6KDNH5DWWOHDQG6HZZDVERUQ
PRUHKLJKO\RIWKDWSHUVRQ$QGWKHLUHYDOXDWLRQLVHYHQPRUHIDYRUDEOH
LIWKHVLJKWLQJLVDIWHUQRUPDOEXVLQHVVKRXUV
$QG'RQQD0DUFKDQGZDVLQVSLUHGWRVWDUWGHVLJQLQJNLGV¶
FORWKLQJZKHQVKHZDVVKRSSLQJIRUKDQGPDGHFORWKHVIRU
'HWDLOVRIWKHVWXG\DUHSXEOLVKHGLQWKH-XQHLVVXHRIWKHMRXUQDO+XPDQ
KHURZQJLUOV³7KHFORWKHVZHUHVXSHUFXWHEXWWKHSULFHV
5HODWLRQV
ZHUHKLJK´VKHVD\V³7KDW¶VZKHQ,WKRXJKWµKH\,FDQGR
WKLV¶´
3KRWRE\IUHHFOLSDUWRIFRP

JOREDOPDUNHWIRU/LQX[V\VWHPV7RGD\LWLVWKHODUJHVW
GLVWULEXWRURIWKH/LQX[RSHUDWLQJV\VWHP
6FUHHQVKRWIURP5HG+DW
%86,1(6623325781,7,(6:(%/2*
7KH2SHQ6RXUFH0DQ
-8130
%%&
%RE<RXQJLVDVHOIFRQIHVVHGFRQWUDULDQZLWKDVWURQJGHVLUH
WRFKDQJHWKHZRUOGE\DOORZLQJSHRSOHWRVKDUHDQG
FROODERUDWH7KHDSSURDFKKDVVHUYHGKLPZHOODQGKDV
KHOSHGWXUQWKH&DQDGLDQLQWRDPXOWLPLOOLRQDLUH
0U<RXQJVWDUWHGRXWDVDW\SHZULWHUVDOHVPDQDQGZHQWRQ
WRIRXQGDQGUXQDFRPSXWHUOHDVLQJFRPSDQ\7KDWZDVVROG
RQEXWWKHILUPWKDWERXJKWKLPRYHUUDQLQWRILQDQFLDO
GLIILFXOWLHVDQG0U<RXQJEHFDPHXQHPSOR\HGZLWKWKUHH
FKLOGUHQWRVXSSRUWDQGDODUJHPRUWJDJH
+HFOHDQHGRXWKLVZLIH¶VVHZLQJFORVHWWXUQHGLWLQWRDQ
RIILFHDQGVWDUWHGDJDLQ+HVWDUWHGDEXVLQHVVFDOOHG$&&
&RUSWKDWGLVWULEXWHGIUHH8QL[VRIWZDUH0U<RXQJDOVR
SXEOLVKHGDQHZVOHWWHUIRUIRUPHUFOLHQWVXVLQJWKH8QL[
RSHUDWLQJV\VWHP7KRVHVXEVFULEHUVWXUQHGKLPRQWRDQHZ
IUHHZDUHYHUVLRQRI8QL[FDOOHG/LQX[
+HZDVODWHUWROGDERXW0DUF(ZLQJZKRKDGFUHDWHGDQ
HQKDQFHGYHUVLRQRI/LQX[FDOOHG5HG+DW0U<RXQJVROGWKH
VRIWZDUHDVIDVWDV0U(ZLQJFRXOGSURGXFHLW
,Q5HG+DW6RIWZDUHZDVFUHDWHGDVWKHWZRFRPELQHG
WKHLUFRPSDQLHVDQGILQDQFHGWKHLUIOHGJOLQJEXVLQHVVE\
PD[LQJRXWDKDOIGR]HQFUHGLWFDUGV
%\WKHFRPSDQ\KDGFDSWXUHGRIWKHVHUYHU
RSHUDWLQJV\VWHPPDUNHWDQG5HG+DWKHOGRYHURIWKH

-XQH
7RGD\·V7DEEORLG
'$01,:,6+,¶'7+28*+72)7+$7 UHSXWDWLRQDQGJXWV
+RZWRFUHDWHDJUHDWMREDG
-81$0
7+(60$573$66,9(,1&20(%/2*
<RXFDQDJRQL]HRYHUDZULWWHQMREGHVFULSWLRQ²RU\RXFDQMXVWWHOO
SHRSOHZKDW\RX¶UHORRNLQJIRU$VLPSOHYLGHROLNHWKLVKDVSHUVRQDOLW\ +RZ2QH/LWWOH0LQXWH&DQ
DQGVKRZVWKHUHDO\RX
,QFUHDVH<RXU(PDLO2SHQ5DWH
'R\RXZDQWWRDWWUDFWSHRSOHZKRDUHUHVXPHERPELQJJHQHULF -81$0
/LQNHG,QDGVRUGR\RXZDQWSHRSOHZKRXQGHUVWDQGDQGUHVSRQGWR
VRFLDOPHGLD"
/HDUQPRUHDERXWWKHMREDW$QW¶V(\H9LHZKHUH*UHDWFRPSDQ\
6KDUH
6(7+¶6%/2*
6OLFN
-81$0
+DYH\RXHYHUKDGRQHRIWKRVHPRPHQWVZKHQ\RXWKRXJKWWR\RXUVHOI
)RUDORQJWLPHWKHEHVWZD\WRWHOOLIVRPHWKLQJZDVSURIHVVLRQDOKLJK ³,WFDQ¶WEHWKDWHDV\«FDQLW"´
JUDGHDQGZRUWKDSUHPLXPZDVE\MXGJLQJWKHVOLFNQHVVRIWKH
SURGXFWLRQYDOXHV :HOOWKDW¶VZKDW,WKRXJKWDIWHU,OHDUQHGWKLVWHFKQLTXHWRLQFUHDVHWKH
RSHQUDWHVRIEURDGFDVWHPDLOV.HHSUHDGLQJDQG\RXMXVWPLJKWWKLQN
7KH%RXUQH,GHQWLW\FRVWPRUHWRPDNHWKDQ7KH7R[LF$YHQJHU-RKQ WKHVDPHWKLQJ
*ULVKDP¶VODWHVWQRYHOZDVFOHDUO\ZRUWKPRUHWKDQDVHOISXEOLVKHG
W\SHZULWWHQERRNRISRHWU\6HUJHDQW3HSSHUZDVDPRUHSURIHVVLRQDO )RUWKRVHRI\RXZKRGRQ¶WNQRZDQ³RSHQUDWH´LVWKHUDWLRRIHPDLOV
DOEXPWKDQVRPHWKLQJIURPWKH6NLQQ\$PHULFDQVWKDWJDUDJHEDQG RSHQHGE\WKHQXPEHURIHPDLOVVHQW6DGO\EXWWUXWKIXOO\QRW
GRZQWKHVWUHHW HYHU\RQHZKR\RXVHQGDQHPDLOWRZLOORSHQLW,QIDFWVRPHVD\WKDWDQ
RSHQUDWHRIRQO\LVDFWXDOO\TXLWHKLJKEXWLWDOOUHDOO\GHSHQGVRQD
$QGVRUHVWDXUDQWVJRWVOLFNHUDVGLGEXVLQHVVSURSRVDOV:HORRNHGIRU QXPEHURIIDFWRUVLQFOXGLQJ
FXHVRQZHEVLWHVRULQWKHZD\DFRQIHUHQFHZDVSUHVHQWHGDQGWKHVWDJH
ZDVGUHVVHG 7KHVL]HRI\RXUOLVW8VXDOO\WKHELJJHUWKHOLVWWKHVPDOOHUWKH
RSHQUDWH
1RZRIFRXUVHWKHUH¶VDXWRWXQHDQG3UR7RROVZKLFKFDQPDNHDQ\EDQG
VRXQGOLNH%ULWWDQ\7KHUH¶V.LQNR¶VDQG0RRFDUGVDQGSOHQW\RISHRSOH 7KHTXDOLW\RIVXEVFULEHUVWR\RXUOLVW
ZKRZLOOVHOO\RXJORVVIRUQRWVRPXFKPRQH\
7KHFRS\RI\RXUVXEMHFWOLQH,W¶VZLFNHGLPSRUWDQWWRKDYHDQ
6R,JXHVVLQVWHDGRIVOLFNZH¶UHQRZVHHNLQJWUDQVSDUHQF\DQG HQWLFLQJDQGH\HFDWFKLQJVXEMHFWOLQHWRJUDE\RXUVXEVFULEHU¶V
DWWHQWLRQ

1RPDWWHUZKDW\RXULQLWLDORSHQUDWHLVWKHUHLVRQHWKLQJ\RXFDQGR
WKDWZLOOLPPHGLDWHO\LQFUHDVH\RXURSHQUDWHDQGLWRQO\WDNHVDPLQXWH
5HVHQGWKHHPDLOWRHYHU\RQHZKRGLGQRWRSHQLW
7KLQNDERXWLW±VRPHWLPHVSHRSOHDFFLGHQWDOO\RYHUORRNFHUWDLQHPDLOV
LQWKHLULQER[RUWKH\PD\SODQWRRSHQDQHPDLOEXWVLPSO\IRUJHW
5HVHQGLQJ\RXUHPDLOWRWKHVHSHRSOHDOPRVWJXDUDQWHHVDQLQFUHDVHG
RSHQUDWH 7KLVZLOOWDNH\RXWRWKHVHDUFKVXEVFULEHUVDUHD,QWKH
³6HOHFW)LHOG´GURSGRZQPHQXVHOHFW³0HVVDJH1RW2SHQHG´
2IFRXUVH\RXGRUXQWKHVOLJKWULVNRIDVSDPFRPSODLQW
$VPHQWLRQHGRQPDQ\HPDLOVHUYLFHZHEVLWHV³>&RPSDQ\@GRHVQRW
UHFRPPHQGWKDW\RXUHVHQGWKHVDPHHPDLOWRFRQWDFWVZKRGLGQ¶WRSHQ
LWWKHILUVWWLPH5HVHQGLQJDQHPDLOPD\UHVXOWLQDVSDPFRPSODLQW
DJDLQVW\RXDVWKHFRQWDFWPD\VHHPXOWLSOHFRSLHVRIWKHVDPHHPDLOLQ
WKHLUDFFRXQW´
7KHUHDUHDIHZWKLQJV\RXFDQGRLQ\RXUUHVHQGKRZHYHUWKDWZLOO
GHFUHDVHVSDPFRPSODLQWV
:DLWD*RRG1XPEHURI'D\V%HIRUH<RX5H6HQG,¶GVD\ &OLFNRQWKHILHOGRQWKHLPPHGLDWHULJKWDQGVHOHFWKHH[DFW
GD\VPLQLPXPMXVWWREHVDIH7KDWZD\LWJLYHVSHRSOHZKR PHVVDJHWKDW\RXZDQWWRUHVHQG
UHFHLYHWKHLQLWLDOHPDLOWLPHWRRSHQLWEHIRUHUHFHLYLQJDGXSOLFDWH
HPDLOIURP\RX3OXVDIWHUGD\VWKRVHZKRGRQRWRSHQLWPD\ &OLFNRQ³6HDUFK´
WUXO\KDYHPLVVHGRUIRUJRWWHQDERXW\RXULQLWLDOVHQG
<RXZLOOWKHQVHHDVHJPHQWRISHRSOHZKRGLGQRWRSHQWKH
&KDQJHWKH6XEMHFW/LQHRIWKH5H6HQGHPDLO%\GRLQJ VHOHFWHGPHVVDJH1DPHWKHVHJPHQWDQGVDYHLWVR\RXFDQ
WKLV\RXUVXEVFULEHUVFDQQRWVLPSO\ORRNDWWKHLULQER[DQGVHHWZR UHFDOOLWLQWKHQH[WVWHS
RIWKHH[DFWVDPHHPDLOV7KH\ZRQ¶WNQRZWKHERG\LVWKHVDPH
EHFDXVHZHOOWKH\GLGQ¶WRSHQLWWKHILUVWWLPH
%H+RQHVWDQG0HQWLRQWKH5H6HQG<RXFDQFKDQJHWKH
VXEMHFWOLQHDQGRUWH[WZLWKLQWKHHPDLOLWVHOIWRPHQWLRQWKDW\RX
DUHLQGHHGUHVHQGLQJWKLVHPDLO:LWKFRS\VXFKDV³,QFDVH\RX
PLVVHGLWWKHILUVWWLPH´RU³,KDGWRPDNHVXUH\RXUHDGWKLV 1RZ±FRS\SDVWH\RXURULJLQDOEURDGFDVWLQWRDQHZRQH
EHFDXVH«´\RX¶OOGHFUHDVH\RXUFKDQFHVRIDVSDPFRPSODLQW, 8QGHUWKH³VHQGWRVHJPHQW´RSWLRQXVHWKHGURSGRZQPHQX
ZRXOGQ¶WEODWDQWO\PHQWLRQWKDW\RXFRXOGWHOOWKH\GLGQ¶WRSHQ WRVHOHFWWKHVHJPHQWWKDW\RXQDPHGLQWKHSUHYLRXVVWHS
\RXUILUVWHPDLOEHFDXVHWKDWPD\FUHHSSHRSOHRXWHVSHFLDOO\ ZKLFKLVDJDLQWKRVHSHRSOHZKRGLGQRWRSHQWKLVHPDLO
WKRVHZKRDUHQ¶WWHFKVDYY\ZKRPD\WKLQN\RX¶UHVS\LQJRUXSWR RULJLQDOO\7KLVLVWKHVWHSZKHUH\RXFDQXSGDWHWKHFRS\RI
VRPHNLQGRIYRRGRR WKHVXEMHFWOLQHDQGRUERG\RI\RXUHPDLOVRWKDW\RXFDQ
OHVVHQWKHFKDQFHVRIVSDPFRPSODLQWV
,W¶VXSWR\RXZKHWKHURUQRW\RXIHHOFRPIRUWDEOHZLWKWKLVWHFKQLTXH
,¶YHXVHGLWVHYHUDOWLPHVLQWKHSDVWQRWRQWKH63,QHZVOHWWHUEXWRQ
DQRWKHUQHZVOHWWHUWKDW,PDQDJHDQGLWZRUNVHYHU\VLQJOHWLPH
VRPHWLPHVLQFUHDVLQJP\RSHQUDWHPRUH:LWKDOLVWRIRYHU
VXEVFULEHUV,KDYH\HWWRKHDUDQ\FRPSODLQWV
5HVHQGLQJD%URDGFDVW(PDLO
,ZLOOEHZDONLQJ\RXWKURXJKKRZWRTXLFNO\UHVHQGDQZLWK$ZHEHU
DOWKRXJK,¶PVXUHWKHUHDUHZD\VWRGRLWRQRWKHUHPDLOSODWIRUPVDV
ZHOO
6LJQLQDQGFOLFNRQ³6XEVFULEHUV´

%86,1(6623325781,7,(6:(%/2*
6HOO<RXU3URGXFWVWR7HQVRI
0LOOLRQVRI&XVWRPHUV
-8130
6WDUWXS1DWLRQLVFROODERUDWLQJZLWK2YHUVWRFNFRPWRKHOSFRQQHFW\RXU
VPDOOEXVLQHVVZLWKWKHWHQVRIPLOOLRQVRIVKRSSHUVDW2YHUVWRFNFRP
WKURXJK2YHUVWRFN¶V0DLQ6WUHHW6WRUH,W¶VDEUDQGQHZZD\IRU\RXWR
H[SRVH\RXUSURGXFWVWRDPDVVLYHDQGWDUJHWHGFXVWRPHUEDVHDQGWRGR
7KHRUHWLFDOO\\RXFRXOGUHUHVHQG\RXUHPDLOWRWKRVHZKRGRQRW VRZLWKRXWKDYLQJWRWDNHXQQHFHVVDU\ULVNRUPDNHKXJHPDUNHWLQJ
RSHQ\RXUUHVHQGDOWKRXJK,GHILQLWHO\ZRXOGQRWUHFRPPHQGLW,IIRU LQYHVWPHQWV
ZKDWHYHUUHDVRQDSHUVRQGRHVQRWRSHQ\RXUHPDLODIWHUWZRWULHV,
ZRXOGVDYH\RXUHQHUJ\DQGMXVWEHKDSS\ZLWKWKRVHZKRGLGRSHQ\RXU YLD6WDUWXS1DWLRQ
HPDLODQGIRFXVRQ\RXUQH[WFDPSDLJQ
$VN7KH5HDGHUV
0\TXHVWLRQWR\RXLV
,VWKLVDJRRGWHFKQLTXHWRSUDFWLFH":KDWDUH\RXUWKRXJKWV
DERXWLW",¶PLQWHUHVWHGLQKHDULQJIURP\RXEHFDXVH,¶YHKHDUGERWK
VLGHVRIWKHVWRU\EHIRUH
,I\RXGRQ¶WKDYHDQHPDLOOLVW\HWSOHDVHFKHFNRXW7KH%HJLQQHU¶V*XLGH %86,1(6623325781,7,(6:(%/2*
WR6WDUWLQJD1HZVOHWWHU
,QVLGH*DWRUDGH¶V6RFLDO0HGLD
±±±±±±± &RPPDQG&HQWHU
$VDOZD\V,MXVWZDQWHGWRWKDQN\RXIRUVXEVFULELQJ7KLVEORJLVD -8130
VXFFHVV
WKHFRQYHUVDWLRQ
7KDQN\RXVRPXFK
+RZ2QH/LWWOH0LQXWH&DQ,QFUHDVH<RXU(PDLO2SHQ5DWH
,QWKHUHDOPRIPDUNHWLQJ*DWRUDGHLVSUREDEO\EHVWNQRZQIRUVSODVK\
FRPPHUFLDOVIHDWXULQJVRPHRIWKHZRUOG¶VPRVWIDPRXVDWKOHWHV

0DVKDEOHUHSRUWVWKDWDQHZHIIRUWEHKLQGWKHVFHQHVRIWKH3HSVL&R 0DVKDEOHUHSRUWVWKDWDFFRUGLQJWRDQHZVWXG\IURP1LHOVHQVKRZLQJ
RZQHGVSRUWVGULQNPDNHULVSXWWLQJVRFLDOPHGLDTXLWHOLWHUDOO\DWWKH ,QWHUQHWXVDJHLQ$SULORIWKHWLPH\RX¶UHHQJDJLQJZLWK
FHQWHURIWKHZD\*DWRUDGHDSSURDFKHVPDUNHWLQJ VRFLDOPHGLD
7KHFRPSDQ\UHFHQWO\FUHDWHGWKH*DWRUDGH0LVVLRQ&RQWURO&HQWHU PLJKWQRWVHHPOLNHDPDPPRWKSHUFHQWDJHEXW\RXKDYHWRWDNH
LQVLGHRILWV&KLFDJRKHDGTXDUWHUVDURRPWKDWVLWVLQWKHPLGGOHRIWKH LQWRDFFRXQWWKHIDFWWKDWWKLVILQGLQJLVRQDJOREDOVFDOH
PDUNHWLQJGHSDUWPHQWDQGFRXOGEHVWEHWKRXJKWRIDVDZDUURRPIRU
PRQLWRULQJWKHEUDQGLQUHDOWLPHDFURVVVRFLDOPHGLD $OVRDIHZPRUHWHOOLQJWDNHDZD\VIURPWKHUHSRUW&XUUHQWO\WKUHH
TXDUWHUVRI,QWHUQHWXVHUVZRUOGZLGHYLVLWDVRFLDOQHWZRUNRUEORJZKHQ
*DWRUDGH¶V6U0DUNHWLQJ'LUHFWRU&RQVXPHU 6KRSSHU(QJDJHPHQW WKH\JRRQOLQH²WKDW¶VDLQFUHDVHRYHUODVW\HDU
&DUOD+DVVDQRIIHUHGDIHZVXFFHVVVWRULHVVWDUWLQJZLWKWKHFRPSDQ\¶V
PRQLWRULQJRILWV³*DWRUDGHKDVHYROYHG´FDPSDLJQ7KHFRPPHUFLDOV -RH$YHUDJHVSHQGVPRUHWLPHRQWKHVHVLWHVWKDQKHGLGD\HDUDJR
IHDWXUHGDVRQJE\UDSDUWLVW'DYLG%DQQHUZKLFK0LVVLRQ&RQWURO ²IRUH[DPSOH\RXUDYHUDJHXVHUVSHQWKRXUVRQWKHVHVLWHVLQ$SULO
TXLFNO\VDZZDVEHLQJKHDYLO\GLVFXVVHGLQVRFLDOPHGLD:LWKLQ ZKLOHODVW\HDUKHVSHQWKRXUVPLQXWHV
KRXUVWKH\KDGZRUNHGZLWK%DQQHUWRSXWRXWDIXOOOHQJWKYHUVLRQRI
WKHVRQJDQGGLVWULEXWHLWWR*DWRUDGHIROORZHUVDQGIDQVRQ7ZLWWHUDQG )DFHERRN<RX7XEHDQG:LNLSHGLDPDNHDQDSSHDUDQFHDPRQJWKH
)DFHERRNUHVSHFWLYHO\ ZRUOG¶VPRVWSRSXODUEUDQGV
7KHJRDORIWKHSURMHFWVD\V+DVVDQLVWR³WDNHWKHODUJHVWVSRUWVEUDQG $IHZPRUHKLJKOLJKWVIURPWKHVWXG\%UD]LOERDVWVWKHODUJHVW
LQWKHZRUOGDQGWXUQLWLQWRODUJHVWSDUWLFLSDWRU\EUDQGLQWKHZRUOG´7R SHUFHQWDJHRI,QWHUQHWXVHUVYLVLWLQJDVRFLDOQHWZRUN±
WKDWHQGWKHFRPSDQ\¶VQRWRQO\PRQLWRULQJLWVEUDQGRQVRFLDOPHGLD $XVWUDOLDQVVSHQGWKHPRVWWLPHRQVRFLDOQHWZRUNLQJVLWHVDQDYHUDJH
EXWJLYLQJLWVIDQVLQFUHDVHGDFFHVVWRLWVDWKOHWHVDQGVFLHQWLVWV RIKRXUVDQGPLQXWHVLQ$SULO²WKH86DQG,WDO\FDPHLQVHFRQG
DQGWKLUGZLWKVL[DQGDKDOIKRXUVHDFK
3KRWRE\0DVKDEOH
)DFHERRNKDVWKHJUHDWHVWVKDUHRIWKHPDUNHWLQ,WDO\LQ$SULO
JDUQHULQJWZRWKLUGVRIWKHDFWLYHXQLTXHDXGLHQFHLQ$SULO
$XVWUDOLDWKH86DQGWKH8.FDPHLQRQ,WDO\¶VKHHOVZLWKPRUHWKDQ
)URP%XVLQHVV2SSRUWXQLWLHV:HEORJ RIDFWLYHXVHUVYLVLWLQJWKHVLWH
3KRWRE\VKORPDVWHU
+RZ7KH:RUOG6SHQGV,WV
7LPH2QOLQH
-8130

%86,1(6623325781,7,(6:(%/2*
7KH$PHULFDQ'UHDP,V$+DUG
6HOO,Q(XURSH
-8130
%86,1(6623325781,7,(6:(%/2*
*UHHQ%L]3RZHUKRXVH
'\QDPLFV
-8130
7KH(SRFK7LPHV
(XURSHDQVDUHOHVVSURQHWRVWDUWWKHLURZQEXVLQHVVHVHYHQLI
WKH\REWDLQDZLQGIDOOLQKHULWDQFHFRPSDUHGWR$PHULFDQV
DQG&KLQHVH(QWUHSUHQHXUVDUHDOVRPRUHKLJKO\HVWHHPHGLQ
WKH8QLWHG6WDWHVDQG$VLDFRPSDUHGWRKRZWKH\DUHYLHZHG
LQ(XURSH7KHVHILQGLQJVZHUHLQDUHFHQWVXUYH\E\WKH
(XURSHDQ&RPPLVVLRQDLPLQJWRILQGZD\VWRSURPRWH
HFRQRPLFGHYHORSPHQWRQWKHROGFRQWLQHQW ,QDVWKHPDUNHWIRUKRPHHQHUJ\PDQDJHPHQWV\VWHPVJUHZ
1LHOVHQ9DQ'XLMQDQG&DUVWHQ6WHHQEHUJIRXQGHG3RZHUKRXVH
$FFRUGLQJWRWKHVXUYH\SHUFHQWRI(XURSHDQVZRXOG '\QDPLFVWRFRPPHUFLDOL]HDPRQLWRUWKH\KDGGHYHORSHGDVDVLGH
SUHIHUWREHWKHLURZQERVVLIWKH\FRXOGZKLOHSHUFHQW SURMHFW
ZRXOGVWLOOEHZLOOLQJWRZRUNDVHPSOR\HHV7KDWUDWHLVORZHU
WKDQLQWKH8QLWHG6WDWHVZKHUHSHUFHQWRI$PHULFDQV %ORRPEHUJ%XVLQHVVZHHNUHSRUWVWKDWWKHLUV\VWHPZKLFKFRQQHFWVWRD
ZRXOGSUHIHUWRHQJDJHLQSULYDWHEXVLQHVV+RZHYHUHYHQLQ KRPH¶VFLUFXLWEUHDNHUDOORZVKRPHRZQHUVWRWUDFNZKHUHDQGZKHQ
WKH8QLWHG6WDWHVWKDWSUHIHUHQFHLVVL[SRLQWVORZHUWRGD\ WKH\FRQVXPHWKHPRVWHOHFWULFLW\VRWKH\FDQGHWHUPLQHKRZWRFXWEDFN
WKDQLWZDVLQ $QDGGHGIXQFWLRQ,IDSSOLDQFHVVWDUWWRFRQVXPHPRUHHQHUJ\WKDQ
QRUPDOWKHV\VWHPVHQGVDQHPDLORUWH[WDOHUWSRWHQWLDOO\VDYLQJ
³7KHHQWUHSUHQHXULDOSRWHQWLDOLQ(XURSHLVQRWIXOO\ PRQH\DQGKHDGDFKH
H[SORLWHGSHUFHQWRIDOO(XURSHDQVZRXOGOLNHWREHFRPH
WKHLURZQERVVLIWKH\FRXOGEXWRQO\DQDYHUDJHRISHUFHQW )RUH[DPSOH&KLHI([HFXWLYH2IILFHU0DUWLQ)OXVEHUJVD\VD
DUHDFWXDOO\VHOIHPSOR\HGWRGD\´VDLG(XURSHDQ IDXOW\UHIULJHUDWRUGHIURVWFRLOFDQDGGXSWRWRDQHOHFWULF
&RPPLVVLRQ9LFH3UHVLGHQW$QWRQLR7DMDQLFRPPLVVLRQHU ELOO7KHV\VWHPUHVXOWVLQDQDYHUDJHSHUFHQW
IRU,QGXVWU\DQG(QWUHSUHQHXUVKLSLQDVWDWHPHQW UHGXFWLRQLQHOHFWULFLW\ELOOV³<RXFDQUHDOO\VHHZKDW¶VJRLQJ
RQ,WKHOSVFRQVXPHUVXQGHUVWDQGZKDWWKHLURSWLRQVDUH´
³,IZHFRXOGUDLVHWKLVSHUFHQWDJHZHFRXOGKDYHPLOOLRQVRI )OXVEHUJVD\V
QHZLQQRYDWLYHDQGFUHDWLYHHQWHUSULVHVZKLFKZRXOG
UHMXYHQDWH(XURSH¶VHFRQRPLFEDVLVPDNHLWPRUHUREXVW 3RZHUKRXVH'\QDPLFVKDVVROGDERXWXQLWVVRIDUWKLV
PRUHMREJHQHUDWLQJDQGPRUHUHVLOLHQWWRVWRUP\HFRQRPLF \HDUDQG)OXVEHUJH[SHFWVWRVHOODWRWDORIE\
WLPHV´FRQWLQXHG7DMDQL \HDUHQG7KHQH[WVWHS3RZHUKRXVH'\QDPLFVSODQVWRUROO
RXWDUHPRWHFRQWUROOHGWKHUPRVWDWHQDEOLQJXVHUVWRPDQDJH
3KRWRE\URFNFRKHQ HQHUJ\FRQVXPSWLRQHYHQZKHQWKH\DUHQRWKRPH
3KRWRE\3RZHUKRXVH'\QDPLFV

VXJJHVWVWKDWPDQ\RIWKHVHTXDOLWLHVPD\EHUHODWHGWR
SHRSOH¶VJHQHWLFPDNHXS
3KRWRE\%LWWHUMXJ
%86,1(6623325781,7,(6:(%/2*
,V%XVLQHVV,Q<RXU%ORRG"
-8130
%86,1(6623325781,7,(6:(%/2*
6WDUW$%L]/DWHU,Q/LIH
-8130
:H¶YHDOZD\VNQRZQWKDWHQWUHSUHQHXUVDUHDOLWWOHGLIIHUHQWWKDQ
HYHU\RQHHOVH7KH\KDYHWUDLWVWKDWPDNHLWHDVLHUIRUWKHPWRWDNHULVNV
DQGUHPDLQKRSHIXOZKHQWLPHVDUHWRXJK$FFRUGLQJWR7KH:DOO6WUHHW
-RXUQDODQHZVWXG\MXVWPLJKWSURYHWKDWHQWUHSUHQHXUVKLSMXVWPLJKW
$IWHU\HDUVRIZRUNLQJIRUDQDLUOLQH\HDUROG/LQGD1DJDPLQHXVHG
EHLQWKHLU'1$
WKDWKDGEHHQHDUPDUNHGWREX\DULQJWRVWDUW+RQROXOXEDVHG
(=/LYLQJ&RQQHFWLRQ$QGWKHFRPSDQ\MXVWKDGLWVILUVWSURGXFW±D
7XUQVRXWSDUWRIEHLQJDQHQWUHSUHQHXUPD\EHLQQDWHDQG
NH\FKDLQOLNHGHYLFHWKDWDWWDFKHVWRDZRPDQ¶VSXUVHVWUDSDQGSXWVDQ
UHVHDUFKHUVDUHJHWWLQJFORVHWRLGHQWLI\LQJJHQHVDVVRFLDWHG
HQGWRWKHGD\VRIVHDUFKLQJIRUNH\V±IHDWXUHGRQWKHWHOHYLVLRQVKRSSLQJ
ZLWKVWDUWXSVDYY\$FFRUGLQJWR&DVH:HVWHUQ5HVHUYH
QHWZRUN49&
8QLYHUVLW\HFRQRPLFVSURIHVVRU6FRWW6KDQHDXWKRURI%RUQ
(QWUHSUHQHXUV%RUQ/HDGHUVSHUFHQWRIWKHYDULDWLRQLQ
(QWUHSUHQHXUUHSRUWVPRUHDQGPRUHROGHUSHRSOHDUHWDNLQJ
WKHWHQGHQF\WREHDQHQWUHSUHQHXULVLQKHULWHG+LVZRUN
WKHHQWUHSUHQHXULDOVWHSIRUWKHILUVWWLPH,QWKHVWXG\³7KH
SXWVDQHZVSLQRQDQDJHROGTXHVWLRQ&DQFODVVURRP
&RPLQJ(QWUHSUHQHXUVKLS%RRP´WKH(ZLQJ0DULRQ
OHDUQLQJUHDOO\WHDFK\RXKRZWRVXFFHHG"
.DXIIPDQ)RXQGDWLRQUHSRUWVWKDWIURPWR
$PHULFDQVDJHGWRKDGDVLJQLILFDQWO\KLJKHUUDWHRI
,W¶VDQLVVXHWKDW¶VOLNHO\WRFDXVHKHDUWEXUQIRUHGXFDWRUV
HQWUHSUHQHXULDODFWLYLW\WKDQWKRVHDJHGWR
(QWUHSUHQHXULDOHGXFDWLRQLVDIDVWJURZLQJEXVLQHVV,Q
WKHUHZHUHIHZHUWKDQXQGHUJUDGXDWHDQGJUDGXDWH
,IVWDUWLQJ\RXURZQEXVLQHVVODWHULQOLIHLVDQDSSHDOLQJLGHD
HQWUHSUHQHXULDOSURJUDPVEXWWRGD\WKHUHDUHDWOHDVW
NHHSWKHVHWLSVLQPLQG
DFFRUGLQJWRWKH3ULQFHWRQ5HYLHZ$QGWKHWXLWLRQRIDJUDG
OHYHOHQWUHSUHQHXUSURJUDPDYHUDJHVQHDUO\D
.HHSWKLQJVOHDQ$VZLWKDQ\HQWUHSUHQHXUROGHU
\HDU²TXLWHDELWWRSD\LI0RPDQG'DGKDYHDOUHDG\JLYHQ
SHRSOHZKRVWDUWWKHLURZQEXVLQHVVZRXOGGRZHOOWRNHHS
\RXZKDWLWWDNHV
H[SHQVHVLQFKHFNSDUWLFXODUO\DWWKHRXWVHW
7KHUH¶VQRVXFKWKLQJDVDVWDUWXSJHQHDODVEXWUHVHDUFKHUV
/HYHUDJHQHWZRUNV%HVXUHWRXVH\RXUQHWZRUNRI
WKLQNWKH\¶YHIRXQGDJURXSRISHUVRQDOLW\WUDLWVWKDW
IULHQGVIDPLO\DQGFROOHDJXHVWKURXJKRXWWKHODXQFKDQG
VXFFHVVIXOHQWUHSUHQHXUVVKDUHLQFOXGLQJKLJKHUWKDQ
JURZWKRIWKHFRPSDQ\
DYHUDJHH[WURYHUVLRQRSHQQHVVWRH[SHULHQFHDQGHYHQWKH
FDSDFLW\WREHGLVDJUHHDEOH²DXVHIXOSUHGLVSRVLWLRQIRU
,I\RXODFNDVNLOOSDUWQHUZLWKVRPHRQH
VRPHRQHZKRGULYHVKDUGEDUJDLQV$QGRWKHUUHVHDUFK

'RQ¶WJHWGLVFRXUDJHGEHFDXVHRI\RXUDJH
3KRWRE\IXQNH\ILQGHU

-XQH
7RGD\·V7DEEORLG
6(7+¶6%/2* DQXQHYHQH[FKDQJHEULQJKLPVHOIFORVHUWRWKHUHFLSLHQWFUHDWHFKDQJH
DQGGRLWDOOZLWKWKHULJKWVSLULW7RGRDQ\WKLQJOHVVPLJKWEHVPDUW
*LIWVPLVXQGHUVWRRG FRPPHUFHEXWLWGRHVQ¶WULVHWRWKHPDJLFDOOHYHORIWKHJLIW$GD\¶VZRUN
-8130 IRUDGD\¶VSD\LVWKHZLQORVHPDQWUDRIWKHLQGXVWULDOHUD0RUHPRGHUQ
LVWRYLHZDGD\¶VZRUNDVDFKDQFHWRJHQHUDWHJLIWVWKDWODVW
:KDW¶VDJLIW"
,PHWDELJVKRWIRUPHU)RUWXQHFRPSDQ\&(2ZKRH[SODLQHGWRPH
WKDWKHXVHGWRKDYHWKUHHVHFUHWDULHV2QHIRUKLVFDOHQGDURQHIRUKLV %86,1(6623325781,7,(6:(%/2*
XVXDOZRUNDQGRQHZKRGLGQRWKLQJEXWVHQGSHRSOHJLIWV
1HZ%L]RS&ODVVLILHG$GV7KLV
,WKLQNZKHQLW¶VVHQWE\DFRUSRUDWLRQDQGFKRVHQE\DVHFUHWDU\LW¶VQRW
DJLIW,W¶VDSUHVHQW2UDIDYRU :HHN
-8130
$JLIWFHUWLILFDWHIURPDULFKXQFOHLVDSUHVHQWDVZHOOLW¶VQRWUHDOO\DJLIW
$IDYRULVVRPHWKLQJZHGRIRUVRPHRQHKRSLQJIRUDQHTXDORUJUHDWHU
IDYRULQUHWXUQ+HQFHWKHSKUDVH³UHWXUQWKHIDYRU´1RRQHVD\V
³UHWXUQWKHJLIW´
$SUHVHQWLVVRPHWKLQJWKDWFRVWVPRQH\VXUHDQGLW¶VIUHHEXW,GRQ¶W
WKLQNLW¶VDJLIW
$JLIWFRVWVWKHJLYHUVRPHWKLQJUHDO,WPLJKWEHFDVKHQRXJKWKDWZH
IHHOWKHSLQFKEXWPRUHOLNHO\LWLQYROYHVDVDFULILFHRUDULVNRUDQ
HPRWLRQDOH[SRVXUH$WUXHJLIWLVDKHDUWIHOWFRQQHFWLRQVRPHWKLQJWKDW
FKDQJHVERWKWKHJLYHUWKHUHFLSLHQW
7KH*LIWRIWKH0DJLLVDJUHDWVWRU\EHFDXVHHDFKSHUVRQLQWKHVWRU\
+RZ7R%X\$QG6HOO&DUV)RU3URILW
VDFULILFHVWRFUHDWHDKHDUWIHOWJLIWIRUWKHRWKHUSHUVRQ$QGLW¶V
JLIWV²JLIWVWKDWWRXFKXVJLIWVWKDWFKDQJHXV²WKDWDUHWUDQVIRUPLQJWKH
+RZ7R6WDUW$+RW'RJ&DUW%XVLQHVV
ZD\ZHLQWHUDFW
6KRHPRQH\6\VWHP
2QHRUWZRUHDGHUVDVNHGPHZK\P\ERRN/LQFKSLQFRVWVPRQH\$IWHU
DOOWKH\DVNLIJLIWVDUHDFRUQHUVWRQHRIWKHQHZHUDZK\QRWJLYHLWDZD\
6HFUHW%ORJ:HDSRQ
IUHHDVDJLIW"
+LJK6FKRRO'URSRXW%DQNVN)URP%DQQHU$GV
)UHHGRHVQ¶WPDNHVRPHWKLQJDJLIW)UHHPLJKWEHDPDUNHWLQJVWUDWHJ\
IUHHPLJKWPDNHDJHQHURXVSUHVHQWEXWIUHHGRHVQ¶WDXWRPDWLFDOO\PDNH
7KH$IILOLDWH&RGH
VRPHWKLQJDJLIW*LO6FRWW+HURQ¶VQHZDOEXPLVQ¶WIUHHEXWLW¶VDJLIW
+H¶VH[SRVLQJKLPVHOI7DNLQJDULVN<RXOLVWHQWRWKHDOEXPDQG\RXIHHO
6WDUW<RXU2ZQ%XVLQHVV
GLIIHUHQWO\ZKHQ\RX¶UHGRQHLW¶VQRWDSURGXFWLW¶VDYHU\SHUVRQDO
VWDWHPHQW.HOOHU:LOOLDPVDSSURDFKHVKLVHQWLUHFUDIWDVDFKDQFHWRJLYH
%ORJJHU:DQWHG%ORJ-RE
JLIWVEXWWKDWGRHVQ¶WPHDQKHFDQ¶WFKDUJHIRUVRPHHOHPHQWVRIKLV
ZRUN:KDWLWWRRNKLPWRFUHDWHWKHPXVLFLVVRPXFKJUHDWHUWKDQZKDW
+RZ7R6WDUW$+RPH6RODU3RZHU%XVLQHVV
LWFRVW\RXWRFRQVXPHLWWKDWKHLVJLYLQJJLIWVZLWKRXWGRXEW
+RZ7R%H$'RJ7UDLQHU
7KHZD\,XQGHUVWDQGJLIWVLVWKDWWKHJLYHUPXVWPDNHDVDFULILFHFUHDWH

)UHH(OHFWULFLW\ '$01,:,6+,¶'7+28*+72)7+$7
+RZ7R6WDUW$+RPH6WDJLQJ%XVLQHVV +RZ0DNHU¶V0DUNLVWXUQLQJ
+RZ7R%XLOG$0LOOLRQ'ROODU0HGLFDO7UDQVSRUWDWLRQ&RPSDQ\ FXVWRPHUVLQWROLIHORQJEUDQG
,QWHUQHW1HZELH*RHV)URP=HUR7R,Q+LV)LUVW DPEDVVDGRUV²OLYH:RUGRI
'D\V
0RXWK6XSHUJHQLXVSUHYLHZ
+RZ7R6WDUW$2IILFH&OHDQLQJ%XVLQHVV
ZLWK7RGG6SHQFHU
+RZ7R6WDUW$'D\FDUH -8130
+RZ7R6WDUW$&DWHULQJ%XVLQHVV
+RZ7R0DNH0RQH\:LWK,SKRQH$SSV
+RZ7R6WDUW$%DWWHU\5HFRQGLWLRQLQJ%XVLQHVV
/RRNLQJ)RU7KDW6SHFLDO*LIW+ROODWXUJLUO
*HW)RUHFORVXUH&OHDQXS-REV:RUN)DVW
/LIHWLPH5HVLGXDO,QFRPH±4XDOLW\+RPH%DVHG%XVLQHVV
%RRWFDPS
&KLOG&DUH%XVLQHVV
:RUNLQJ,QYHVWPHQW3DUWQHU)RU'D\VSD,Q:DVKLQJWRQ6WDWH :H¶UHEULQJLQJWRJHWKHUDPD]LQJPDUNHWHUVIRU:RUGRI0RXWK
6XSHUJHQLXV7KH³+RZWREH*UHDWDW:RUGRI0RXWK0DUNHWLQJ´
)LQG/HJLWLPDWH2QOLQH-REV-RE5HIHUUDO%RDUGV-RE6LWHV &RQIHUHQFHLQ1HZ<RUNRQ-XO\7KHGD\ZLOOIHDWXUHKRZWR
0RUH FODVVHVUHDOZRUOGFDVHVWXGLHVDQGEULOOLDQWDXWKRUV<RX¶UHJRLQJ
WROHDUQSUDFWLFDOKDQGVRQWHFKQLTXHVWRJHWSHRSOHWDONLQJDERXW\RX
7XUQ(QJHU\,QWR,QFRPH WKHQH[WGD\
$9HU\6PDUW0RYHFRP&RPPLVVLRQ3HU6DOH 2XUOLQHXSRIVSHDNHUVLQFOXGHV'RH$QGHUVRQ¶V7RGG6SHQFHU7RGGZLOO
EHSUHVHQWLQJDFDVHVWXG\RQ0DNHU¶V0DUN¶VDPD]LQJDPEDVVDGRU
6WDUW$)RUHFORVXUH&OHDQXS%XVLQHVV)RUHFORVXUH&OHDQXS SURJUDPDQGRIIHUHGDIHZLGHDVRQKRZWKH\GLGLWLQKLVOLYHSUHYLHZ
%XVLQHVV
$QGFKHFNRXWRXU<RX7XEHSDJHWRVHHDOORIRXUVSHDNHULQWHUYLHZV
7ULOOLRQ,QGXVWU\2QOLQH'UHDP7UDYHO'UHDP7ULSV'UHDP
3ULFHV
6KDUH
YHU\WDUJHWHGUHDGHUV"&UHDWHDFODVVLILHGDGWRGD\IRURQO\


%86,1(6623325781,7,(6:(%/2*
:K\,'LGQ¶W7KLQN2I7KDW
-8130
8QLTXHSURGXFWVWRDPXVHDQGLQVSLUH
0U3RWDWR+HDG(OYLV&RPHVZLWKSOD\EDUELWXUDWHVDQGDPSKHWDPLQHV
$W\S\N*XQ6KLUW1DKWKLVZRQ¶WOHDGWRDQ\WURXEOH
%HDUGHG%HDQLH+DW)RUWKHVW\OLVKFRQYHQLHQFHVWRUHWKLHI
3KRWRVE\HQWHUWDLQPHQWHDUWKLQHZLGHDWUHQGKXQWHUMRVKVSHDU
%HHU%ODVWHU7KHVTXLUWJXQIRUDGXOWV

%86,1(6623325781,7,(6:(%/2* GLVSRVDEOHSODVWLFPXVWEHNHSWWUDFNRIDQGUHWXUQHGWRLWV
RZQHU
*HWWLQJ7DNHQ7R7KH&OHDQHUV
-8130 ³6LQJOHXVHSODVWLFDWGU\FOHDQHUVKDVJRWWHQDSDVV´6LHJHO
VDLG³:H¶UHQRWVRPXFKVHOOLQJRXUEDJDVSXEOLFL]LQJWKH
FRQFHSWRIWKHEDJ´
$FFRUGLQJWRDQDQDO\VLVRIFHQVXVILJXUHVE\WKH
'U\FOHDQLQJDQG/DXQGU\,QVWLWXWHELOOLRQSLHFHVRI
FORWKLQJDQGRWKHULWHPVDUHSURIHVVLRQDOO\FOHDQHGLQWKH
8QLWHG6WDWHVHDFK\HDU
,I\RXILJXUHWKDWPRVWFOHDQHUVZUDSQRPRUHWKDQWZRSLHFHV
LQDEDJWKDW¶VDWOHDVWPLOOLRQEDJVD\HDURUPLOOLRQ
SRXQGVRISODVWLFJDWKHULQJGXVWLQWKHEDFNRIRXUFORVHWV
$WWRFHQWVDEDJ²SOXVWZLVWWLHVDQGWKHOLNH²WKDWDGGV
XSZKLFKLVZK\HYHQQRQHQYLURQPHQWDOO\PLQGHGGU\
FOHDQHUVPD\EHRSHQWRPDNLQJWKHVZLWFK
3KRWRE\7KH1HZ<RUN7LPHV
$FFRUGLQJWR7KH1HZ<RUN7LPHV5LFN6LHJHOZRXOGEHLQKLVFORWKHV
FORVHWUXQQLQJODWHZUHVWOLQJZLWKWKHSODVWLFEDJVWKDWHQFDVHG²DQG
WKHWZLVWWLHVWKDWHQWDQJOHG²KLVGU\FOHDQLQJ6XUHO\KHWKRXJKWWKRVH
WZLVWWLHVZRXOGGULYHKLPPDG )URP%XVLQHVV2SSRUWXQLWLHV:HEORJ
$WULSWRWKHFORVHWPDGH-HQQLH1LJURVK¶VVWRPDFKFOHQFK:KHUHGLGDOO
WKLVSODVWLFJR"
6XGGHQO\6LHJHODQGKLVZLIHKDGDQLGHDDUHXVDEOHEDJWR
WUDQVSRUW\RXUFORWKHVWRDQGIURPWKHGU\FOHDQHU$IWHUDQ %86,1(6623325781,7,(6:(%/2*
LQLWLDOLQYHVWPHQWRIDERXWWKH*UHHQ*DUPHQWR
ZDVERUQ 3LWFK<RXU%L])RU)UHH
-8130
³-XQHZHJRWRXUILUVWSURWRW\SH´1LJURVKUHFDOOVRIWKH
&KULVWPDVPRUQLQJOLNHIHHOLQJVKHKDGZKHQWKH\RSHQHGLW
7KHQFDPHGLVDVWHU³,WULSSHG´6LHJHOVDLGJULPDFLQJ
7ZR\HDUVDQGVHYHUDOGHVLJQLPSURYHPHQWVODWHUWKH\VD\
WKH\¶YHVROGDERXW*UHHQ*DUPHQWRV²SULFHGDW
DERXWZKROHVDOHUHWDLO²DQGH[SHFWWRVHOODQ
DGGLWLRQDOPRUHE\-XO\
$QGLQ0DUFKWKH\JRWWKHLUILUVWRXWVLGHILQDQFLQJRWKHU
WKDQWKDW¶VFRPHIURPIULHQGVIURPD
VPDOOFDSLQYHVWPHQWIXQGSXWWRJHWKHUE\WKH3URJUHVVLYH
$VVHW0DQDJHPHQW*URXSDEURNHUDJHILUPWKDWVSHFLDOL]HV )RUVWDUWXSVWKDWDUHQ¶WLQWHUHVWHGLQSD\LQJWRSLWFKWKHLUEXVLQHVVWR
LQZKDWLWVHHVDVVRFLDOO\UHVSRQVLEOHLQYHVWLQJ DQJHOLQYHVWRUVWKHUHDUHVRPHIUHHVHUYLFHVSRSSLQJXSWKDWPLJKWKHOS
UHSRUWV7KH:DOO6WUHHW-RXUQDO
6LHJHODQG1LJURVKVD\WKH\¶YHEHJXQWRDOWHUKRZDYHU\VHW
LQLWVZD\VLQGXVWU\WKLQNVDERXWGRLQJEXVLQHVV (DUOLHUWKLV\HDU,QWHUQHWHQWUHSUHQHXUDQGEORJJHU-DVRQ
&DODFDQLVVWDUWHG2SHQ$QJHO)RUXPZKLFKKROGVIUHHSLWFK
)RUWKH*UHHQ*DUPHQWRWRVXFFHHGUHTXLUHVQRWMXVWD HYHQWVLQYDULRXVFLWLHVZKHUHHQWUHSUHQHXUVVHOHFWHGIURPD
FXVWRPHUEDVHDIWHUDOOEXWDOVRDFXOWXUDOVKLIWZLWKLQWKH SRRORIDSSOLFDQWVFDQSLWFKWRDERXWWRDQJHOLQYHVWRUV
GU\FOHDQLQJZRUOG$IWHUDOODUHXVDEOHEDJXQOLNH

$W2SHQ$QJHO¶VILUVWHYHQWLQ%RXOGHU&RLQ)HEUXDU\WKUHH %86,1(6623325781,7,(6:(%/2*
RIVL[FRPSDQLHVIRXQGQHZLQYHVWRUV
*UHHQ%L]5HFKDU
$QRWKHUIUHHVHUYLFH$QJHO/LVWVWDUWHGLQ)HEUXDU\E\DQJHOV -8130
1DYDO5DYLNDQWDQG%DEDN1LYLYHWVGR]HQVRIGHDOVEHIRUH
KLJKOLJKWLQJWKHEHVWRQHVLQHPDLOVHDFKZHHNVHQWIUHHWRD
JURXSRILQYHVWRUV
0HVVUV5DYLNDQWDQG1LYL²ZKRDOVRUXQ9HQWXUH+DFNVD
IRUSURILWVLWHWKDWSURYLGHVDGYLFHWRVWDUWXSV²VD\WKH\KDYH
UHFHLYHGSLWFKHVIURPPRUHWKDQVWDUWXSVPRVWO\
FRQVXPHU,QWHUQHWFRPSDQLHV2IWKHFRPSDQLHVIHDWXUHG
VRIDURQ$QJHO/LVWDERXWKDOIKDYHUHFHLYHGIXQGLQJWKH\
VD\
0DUFR=DSSDFRVWDIRXQGHURI7KXPEWDFN,QFDVLWHWKDWOHWV
SHRSOHERRNVHUYLFHVOLNHWXWRUVDQGGRJZDONHUVZRQWKUHH
FRPPLWPHQWVIURPDQJHOVDIWHUSLWFKLQJKLVFRPSDQ\LQ
0DUFKDWDQ2SHQ$QJHO)RUXPHYHQWLQ6DQ)UDQFLVFR+H
WKHQWXUQHGWR$QJHO/LVWDQGUHFHLYHGWKUHHPRUH
FRPPLWPHQWVWRFORVHDIXQGLQJURXQGDWPLOOLRQLQ )RRGSURFHVVRUV¶E\SURGXFWVVXFKDVULFHKXOOVQXWVKHOOVDQGRWKHU
-XQH7KHVHUYLFHKHVD\V³LVJRRGDWJHWWLQJZRUWK\VWDUW ZDVWHDUHQRUPDOO\WUDVKHG
XSVLQWRWKHLQER[RILQYHVWRUV´
%XW-DVRQ$UDPEXUX&KLHI([HFXWLYH2IILFHURIUHFKDUVHHVLWDOODVDQ
7KHIUHHVHUYLFHVFRPHLQWKHZDNHRIUHFHQWFULWLFLVPRIWKH XQWDSSHGVRXUFHRIFRRNLQJIXHODQGIHUWLOL]HUUHSRUWV%ORRPEHUJ
SD\WRSLWFKPRGHOZKLFKVRPHDQJHOLQYHVWRUVKDYHDUJXHG %XVLQHVVZHHN
LVMXVWLILHGEHFDXVHWKH\RIIHUDGYLFHDQGVKRXOGEHSDLGIRU
WKHLUWLPH0U&DODFDQLVDQRXWVSRNHQILJXUHLQWKHWHFK +LVFRPSDQ\GHVLJQVDQGEXLOGVHTXLSPHQWWRPDNH
LQGXVWU\ODVWIDOOSXEOLFO\DGPRQLVKHGDQJHOLQYHVWPHQW ELRFKDU²DW\SHRIFKDUFRDOWKDWUHWDLQVPRLVWXUHLQVRLO²DQG
JURXSVIRUFKDUJLQJERRWVWUDSSHGHQWUHSUHQHXUVKXQGUHGVLI VRIDUKDVVROGDPDFKLQHWRDJURXSRIRLODQGJDVLQYHVWRUVLQ
QRWWKRXVDQGVRIGROODUVWRSLWFKWRWKHP +RXVWRQ
3KRWRE\PZOJXLGH $UDPEXUXVWDUWHGUHFKDULQZLWKIURP
DQJHOVDQGKLVVDYLQJV7KHLQQRYDWLRQ$UDPEXUXVD\VLV
VXLWHGIRUWKHIDUPLQJIRUHVWU\DQGIHUWLOL]HULQGXVWULHVDQG
FDQEHSDUWLFXODUO\KHOSIXOLQDUHDVZKHUHFRRNLQJIXHOLV
)URP%XVLQHVV2SSRUWXQLWLHV:HEORJ VFDUFHRUVRLOLVGHSOHWHGDVZHOODVRQLVODQGVZKHUHVHOI
VXIILFLHQF\LVLPSRUWDQW
³:H¶UHRQO\VFUDWFKLQJWKHWLSRIWKHLFHEHUJRIZKDWELRFKDU
FDQGR´KHVD\V+HSODQVWRVHOOWKUHHDGGLWLRQDOXQLWVE\
\HDUHQG
3KRWRE\%ORRPEHUJ%XVLQHVVZHHN

%86,1(6623325781,7,(6:(%/2*
(YHU\GD\%HKDYLRUV&DQ
3URGXFH&OHDQ(QHUJ\
-8130
%86,1(6623325781,7,(6:(%/2*
0RP%DFNV6RQ¶V'UHDP
-8130
$FFRUGLQJWRDVWRU\DW)DVW&RPSDQ\DOOYLEUDWLRQVDUHJRRGYLEUDWLRQV
LQWKHZRUOGRIHQHUJ\KDUYHVWLQJ
:KHWKHULW¶VDURDGXQGHUKHDY\WUDIILFRUFRPPXWHUV
SRXQGLQJWKHVLGHZDONSDYHPHQWPLFURPRYHPHQWVRQDQ\
VXUIDFHFDQEHFRQYHUWHGLQWRFOHDQHQHUJ\E\SRZHU
$QQH0DULH)DQWLQKDVDOZD\VZRUULHGDERXWZKDWW\SHRIMREVKHUVRQ
VFDYHQJLQJGHYLFHVILWWHGZLWKSLH]RHOHFWULF3(FU\VWDOV
ZRXOGEHDEOHWRJHWRQFHKHZDVILQLVKHGZLWKVFKRRO(ULFZKRLV
GLVDEOHGKDVIRXQGKLVFDOOLQJLQODZQFDUHDQGKLVPRPLVGRLQJZKDW
7KHVHSUHVVXUHVHQVLWLYHPDWHULDOV²QRUPDOO\PDGHRI
VKHFDQWRKHOSEDFNKLPXSUHSRUWV7KH:LQGVRU6WDU
FHUDPLFV²JLYHRIIDVPDOOFKDUJHZKHQ³VTXHH]HG
VTXDVKHGEHQWRUVODSSHG´H[SODLQV0DUN\V&DLQD
(ULFZKRWXUQVLQ-XO\MXVWVWDUWHGKLVRZQODZQFDUH
PDWHULDOVVFLHQWLVWDWWKH%ULWLVK1DWLRQDO3K\VLFDO
EXVLQHVVDQG$QQH0DULHDUHJLVWHUHGQXUVHSODQVWRFKDQJH
/DERUDWRU\
FDUHHUVDQGWDNHKRUWLFXOWXUHFODVVHVDW6W&ODLU&ROOHJHLQWKH
IDOOVRVKHFDQKHOSKLVEXVLQHVVJURZ7KH/HDPLQJWRQVLQJOH
6,'(:$/.6
PRPLVQ¶WVWRSSLQJWKHUH:LWKDNLFNVWDUWIURP6DUQLD
7KHUH¶VQRWKLQJSHGHVWULDQDERXW3DYHJHQ6\VWHPV¶ZDONZD\
0D\RU0LNH%UDGOH\¶VFKDOOHQJHWRKLUHPRUHSHRSOHZLWK
VODEVZKLFKJHQHUDWHDVWHDG\ZDWWKRXUVZKHQSRVLWLRQHG
GLVDELOLWLHV$QQH0DULHZDQWVWRPDNHLWHDVLHUIRURWKHU
LQKHDY\IRRWIDOO]RQHV7KLVVXPPHUFOXVWHUVRIHQHUJ\
SDUHQWVDQGRWKHUSHRSOHZLWKGLVDELOLWLHV
DEVRUELQJSDGVZLOOEHLQVWDOOHGDWDPDMRU/RQGRQWUDQVSRUW
KXEWRSRZHUOLJKWLQJDQGVLJQV
0\WKVLQFOXGHWKLQNLQJSHRSOHZLWKGLVDELOLWLHVZLOOEHDEVHQW
PRUHZRQ¶WZRUNDVKDUGZLOOEHPRUHSURQHWRRQWKHMRE
5$,/:$<6
LQMXULHVRUFRVWPRUHWRDFFRPPRGDWH%XWVWDIIDW
5DLOZD\WUDFNVDEVRUEKXJHDPRXQWVRINLQHWLFHQHUJ\IURP
&RPPXQLW\/LYLQJ:LQGVRUVD\VWXGLHVKDYHVKRZQWKDW¶VQRW
SDVVLQJORFRPRWLYHV,QQRZDWWHFKWDSVWKDWWUDLQVWUDLQZLWK
WUXH
FXVWRPL]HGFRQFUHWHVOHHSHUVORDGHGZLWK3(JHQHUDWRUV7KH
ILUPLVFXUUHQWO\WHVWLQJWKHNLWZLWK,VUDHO5DLOZD\VDQG
³7KHJHQHUDOSXEOLFWKLQNVZKHQLWFRPHVWREDUULHUVZLWKDQ\
HVWLPDWHVWKHSDVVDJHRIFDUVDQKRXURYHUNLORPHWHURI
NLQGRIGLVDELOLW\WKHEDUULHUOLHVZLWKWKHSHUVRQZKRKDVD
WUDFNZLOOSURYLGHHQRXJKMXLFHIRUKRXVHKROGV
GLVDELOLW\7KDW¶VQRWWUXH7KHEDUULHUOLHVZLWKXV´VDLG
0HORGLH&RRNRSHUDWLRQVGLUHFWRUZLWK&RPPXQLW\/LYLQJ
63257667$',806
:LQGVRUZKLFKSURYLGHVVXSSRUWIRUDERXWSHRSOHZLWK
+LJKHQHUJ\IDQFHOHEUDWLRQVLQWKHEOHDFKHUVFRXOGVRRQEH
DQLQWHOOHFWXDOGLVDELOLW\DQGWKHLUIDPLOLHV
FKDUJLQJ/('GLVSOD\VDQGRWKHUGHYLFHVDURXQGEDOOSDUNV
3RZHUOHDSEDVHGLQ$QQ$UERU0LFKLJDQDLPVWRVWDUW
$QQH0DULH)DQWLQKRSHVKHUVRQ¶VEXVLQHVVZLOOJURZWR
WHVWLQJ3(IORRUWLOHVDVTXDUHIRRWZLOOFRVWEHWZHHQDQG
ZKHUHKHFDQKLUHZRUNHUVDQGLQVSLUHRWKHUVZLWK
LQVWDGLXPVDURXQGWKHZRUOGQH[W\HDU
GLVDELOLWLHV6KHZDQWVWRFKDOOHQJHORFDOHPSOR\HUVDQGILQG
VL[EXVLQHVVHVZLOOLQJWRKLUHSHRSOHZLWKLQWHOOHFWXDO
3KRWRE\)DVW&RPSDQ\
GLIILFXOWLHV

³,W¶VWLPHWRORRNDWSHRSOHDVSHRSOHQRWDWWKHGLVDELOLW\´ EUHHGRIF\EHUWHUURULVWV
3KRWRE\-DVRQ5LHG\ 8QGHUWKHOHJLVODWLRQWKHSUHVLGHQW¶VVSHFLILFSRZHUVZRXOG
EHGHYHORSHGZLWKFRPSDQLHVDQGZRXOGQ¶WDOORZWKH
JRYHUQPHQWWRWDNHRYHUSULYDWHQHWZRUNVRUJLYHLWPRUH
VXUYHLOODQFHDXWKRULW\WKHODZPDNHUVVDLG
³7KH,QWHUQHWFDQDOVREHDGDQJHURXVSODFHZLWKHOHFWURQLF
SLSHOLQHVWKDWUXQGLUHFWO\LQWRHYHU\WKLQJIURPRXUSHUVRQDO
EDQNDFFRXQWVWRNH\LQIUDVWUXFWXUHWRJRYHUQPHQWDQG
LQGXVWULDOVHFUHWV´-RVHSK/LHEHUPDQD&RQQHFWLFXW
LQGHSHQGHQWZKRKHDGVWKH6HQDWH+RPHODQG6HFXULW\DQG
%86,1(6623325781,7,(6:(%/2* *RYHUQPHQWDO$IIDLUV&RPPLWWHHVDLGDWDQHZVFRQIHUHQFH
6SLOOLRQDLUHV" ³:HFDQQRWZDLWIRUDF\EHU´5HSXEOLFDQ6XVDQ&ROOLQV
-8130 RI0DLQHVDLG
$PLGWKHKDUGVKLSDQGGHYDVWDWLRQRIWKHRLOVSLOOVRPH/RXLVLDQDORFDOV /DZPDNHUVDUHWU\LQJWRFUDIWOHJLVODWLRQWRERRVW86F\EHU
DUHGLYLQJLQWRWKHFOHDQXSDQGXQHDUWKLQJDJROGPLQHHDUQLQJWKH VHFXULW\IROORZLQJUHSRUWVRIKDFNHGJRYHUQPHQWFRPSXWHU
QLFNQDPH³VSLOOLRQDLUHV´$%&1HZVWDNHVDORRN7KHUHPD\EHDVKRUW V\VWHPVDQG0RXQWDLQ9LHZ&DOLIRUQLDEDVHG*RRJOH,QF¶V
FRPPHUFLDOEHIRUHWKHQHZVUHSRUW -DQXDU\WKUHDWWROHDYH&KLQDLQWKHZDNHRIDFRPSXWHU
DWWDFN
3KRWRE\8QLWHG$UWLVWV
%86,1(6623325781,7,(6:(%/2*
1HZ3RZHUV)RU3UHVLGHQW,Q
%86,1(6623325781,7,(6:(%/2*
&\EHU$WWDFN5HVSRQVH
-8130 7KH1HZ86&URS
-8130
DOFRP
:KLOHPRVW$ODEDPLDQVPD\YLHZEDPERRDVDQXLVDQFHDNLQ
%ORRPEHUJ%XVLQHVVZHHNLVUHSRUWLQJWKDWWKHSUHVLGHQWFRXOGRUGHU
WRNXG]XDQHQWUHSUHQHXUZLWKDYLVLRQIRUXVLQJLWDVPDMRU
HPHUJHQF\PHDVXUHVWRFRPEDWF\EHUDWWDFNVXQGHUOHJLVODWLRQ
UHQHZDEOHUHVRXUFHIRUIDEULFIRRGDQGSDSHUEURXJKWKHU
LQWURGXFHGE\WKUHHVHQDWRUVZKRVD\WKH,QWHUQHWKDVXQOHDVKHGDQHZ
PHVVDJHWRWKHVWDWHWRGD\

-DFNLH+HLQULFKHUDELRORJLVWDQG&(2RI%RRVKRRW*DUGHQV
//&RI0RXQW9HUQRQ:DVKPDGHDZKLUOZLQGYLVLWWRWKH
VWDWHWKDWLQFOXGHGVHYHUDOVWRSVLQ$ODEDPD¶VLPSRYHULVKHG
%ODFN%HOW
'XULQJKHUEULHIVWD\+HLQULFKHU¶VFRPSDQ\VLJQHGDMRLQW
DJUHHPHQWZLWKWKH8QLYHUVLW\RI:HVW$ODEDPDDQGSODQVWR
VLJQRQHZLWKWKH8QLYHUVLW\RI$ODEDPD6KHDOVRPHW
:HGQHVGD\ZLWK$XEXUQ8QLYHUVLW\RIILFLDOV
+HLQULFKHUGHYHORSHGWKHSURFHVVRIFORQLQJPRUHWKDQ
VSHFLHVRIEDPERRLQWLVVXHFXOWXUHVIRUVDOHDURXQGWKHZRUOG
²PRVWO\WR$VLD
%XWVKHLVVSHFLILFDOO\LQWHUHVWHGLQPDUNHWLQJDQLQGXVWULDO
JUDGHRIEDPERRNQRZQDV0R]RLQWKH6RXWK
:KLOHWKH8QLWHG6WDWHVLVWKHODUJHVWFRQVXPHURIWKH
SURGXFWQRQHRILWLVJURZQGRPHVWLFDOO\+HLQULFKHUKDV
LGHQWLILHGWKH%ODFN%HOWDVDQLGHDOUHJLRQWRIDUP0R]R
ZKLFKJURZVDVWDOODVIHHWDQGFDQEHLQFKHVLQ
GLDPHWHU
3KRWRE\SMDQYDQGDHOH

-XQH
7RGD\·V7DEEORLG
'$01,:,6+,¶'7+28*+72)7+$7 %86,1(6623325781,7,(6:(%/2*
+RZWRJHWDPLOOLRQUHDGHUV 5HPHPEHU7KHVH"$7 7¶V<RX

-81$0
:LOO&RPPHUFLDOVIURP
UHDGHUVHDFK\HDULVRQO\SHUGD\ -8130
$QGWKHDYHUDJHSHUVRQKDVIULHQGVRQ)DFHERRN 'R\RXUHPHPEHUWKHVHFRPPHUFLDOVIURP"
6R\RXRQO\QHHGRI\RXUUHDGHUVWRUHSRVW\RXU ,W¶VQRORQJHU³<RXZLOO´7RGD\LW¶V³<RXGR´
DUWLFOHYLGHRFRQWHQWDUWHYHUGD\
<RXFDQGRWKDW
6KDUH

%86,1(6623325781,7,(6:(%/2*
)DWKHU¶V'D\<HDUV/DWHU
'$01,:,6+,¶'7+28*+72)7+$7 -8130
7HPSRUDU\3RVW8VHG)RU
7KHPH'HWHFWLRQFG
HIEGDIE
±EIHDGHDE
EIG
-81$0
7KLVLVDWHPSRUDU\SRVWWKDWZDVQRWGHOHWHG3OHDVHGHOHWHWKLV
PDQXDOO\FIDIHFEEDE±EIHDGH
DEEIG
6KDUH 7KHLGHDRI)DWKHU¶V'D\ZDVFRQFHLYHGVOLJKWO\PRUHWKDQDFHQWXU\DJR
E\6RQRUD'RGGRI6SRNDQH:DVKZKLOHVKHOLVWHQHGWRD0RWKHU¶V'D\
VHUPRQLQ

'RGGZDQWHGDVSHFLDOGD\WRKRQRUKHUIDWKHU:LOOLDP6PDUWD
ZLGRZHG&LYLO:DUYHWHUDQZKRZDVOHIWWRUDLVHKLVVL[FKLOGUHQRQD
IDUP

$GD\LQ-XQHZDVFKRVHQIRUWKHILUVW)DWKHU¶V'D\FHOHEUDWLRQ²
\HDUVDJR-XQHSURFODLPHGE\6SRNDQH¶VPD\RUEHFDXVHLWZDV
WKHPRQWKRI6PDUW¶VELUWK
$FFRUGLQJWRWKH86&HQVXVWKHILUVWSUHVLGHQWLDOSURFODPDWLRQ
KRQRULQJIDWKHUVZDVLVVXHGLQZKHQ3UHVLGHQW/\QGRQ-RKQVRQ
GHVLJQDWHGWKHWKLUG6XQGD\LQ-XQHDV)DWKHU¶V'D\)DWKHU¶V'D\KDV
EHHQFHOHEUDWHGDQQXDOO\VLQFHZKHQ3UHVLGHQW5LFKDUG1L[RQ
VLJQHGWKHSXEOLFODZWKDWPDGHLWSHUPDQHQW
PLOOLRQ
(VWLPDWHGQXPEHURIIDWKHUVDFURVVWKHQDWLRQ
PLOOLRQ
1XPEHURIVLQJOHIDWKHUVLQSHUFHQWRIVLQJOHSDUHQWVZHUHPHQ

(VWLPDWHGQXPEHURIVWD\DWKRPHGDGVLQ7KHVHPDUULHGIDWKHUV
ZLWKFKLOGUHQ\RXQJHUWKDQKDYHUHPDLQHGRXWRIWKHODERUIRUFHIRUDW
OHDVWRQH\HDUSULPDULO\VRWKH\FDQFDUHIRUWKHIDPLO\ZKLOHWKHLUZLYHV
ZRUNRXWVLGHWKHKRPH7KHVHIDWKHUVFDUHGIRUFKLOGUHQ
$PRQJWKHVHVWD\DWKRPHGDGVSHUFHQWKDGWZRRUPRUHFKLOGUHQ
DQGSHUFHQWKDGDQDQQXDOIDPLO\LQFRPHRIRUPRUH
3KRWRE\WKHRSKLQH

-XQH
7RGD\·V7DEEORLG
7KHL3DG%RRN3XEOLVKLQJ
6HFUHW
-81$0
%86,1(6623325781,7,(6:(%/2*
3XEOLF/LEUDULHV$V%L]
,QFXEDWRUV
-81$0
$FFRUGLQJWR9HQWXUH%HDWDVSLULQJERRNDXWKRUVIDFHWZRKXUGOHV
5HMHFWLRQIURPSXEOLVKHUVDQGWKHKLJKFRVWDQGKDVVOHRIWU\LQJWR
SXEOLVKDERRNWKHPVHOYHV6HOISXEOLFDWLRQFRPSDQ\)DVW3HQFLOKDV 3KLO6KDSLURDW3&:RUOGVXSSRVHV\RXKDYHDQLGHDIRUDQHZGLJLWDO
FRPHXSZLWKDFOHYHUQHZRSWLRQ$XWKRUVZKRVLJQXSZLWK)DVW3HQFLO VHUYLFHVEXVLQHVV±DEXVLQHVVWKDWGHOLYHUVVRPHYDOXHWRRWKHUVRYHUWKH
FDQQRZSXEOLVKWKHLUERRNVGLUHFWO\LQWR$SSOH¶VL%RRNVFDWDORJ ,QWHUQHW
1RSHUPLVVLRQUHTXLUHG´&72DQGFRIRXQGHU0LFKDHO 1RPDWWHUKRZJRRG\RXULGHDPLJKWEHJHWWLQJVXFKD
$VKOH\WROGPHLQDSKRQHLQWHUYLHZ³$Q\RQHFDQXSORDGD EXVLQHVVRIIWKHJURXQGUHTXLUHVDJLYHQDPRXQWRIFDSLWDO
PDQXVFULSWWR)DVW3HQFLOFOLFNDIHZEXWWRQVDQGKDYHDFFHVV $QGWKLVEXVLQHVVPLJKWUHTXLUHEXVLQHVVVNLOOVWKDW\RXGR
WRDIHZPLOOLRQUHDGHUVIRUXQGHUWZRKXQGUHGEXFNV´ QRWSRVVHVV<RXFRXOGFKHFNDURXQGZLWKIULHQGVWRVHHLIDQ\
RIWKHPDUHLQWHUHVWHGLQMRLQLQJ\RXLQVXFKDYHQWXUHEXW
8QOLNHDSSV$SSOHGRHVQ¶WUHYLHZERRNVLQGLYLGXDOO\ \RXFRXOGVSHQGPRQWKVILQGLQJWKHULJKWIULHQGVZKRDUH
)DVW3HQFLOLVDQDSSURYHGSXEOLVKHUVRLI)DVW3HQFLO LQWHUHVWHGDQGDYDLODEOH
SXEOLVKHV\RXUERRNLWJRHVULJKWLQWRWKHL%RRNVFDWDORJ
(YHU\EXVLQHVVLVDMLJVDZSX]]OHWKDWUHTXLUHVMXVWWKHULJKW
2QHPRUHWKLQJ)DVW3HQFLOQHLWKHURIIHUVDGYDQFHVQRUWDNHV SLHFHVWRILWWRJHWKHU7RKHOSWKRVHSLHFHVILWWRJHWKHUWKH
DQXSIURQWFKDUJH7KHFRPSDQ\¶VEXVLQHVVPRGHOEH\RQG FRQFHSWRIWKHEXVLQHVVLQFXEDWRUZDVERUQ7KHIXQFWLRQRID
WKHVXEVHWXSSULFHLVDUHYHQXHVKDUHRQLQGLYLGXDO EXVLQHVVLQFXEDWRULVWRLGHQWLI\SURPLVLQJEXVLQHVVLGHDV
VDOHV³:HGRQ¶WPDNHPRQH\XQWLOWKHDXWKRUPDNHVPRQH\´ DQGWKHQDVVLVWHQWUHSUHQHXUVLQVXSSO\LQJWKHPLVVLQJSLHFHV
$VKOH\SXWLW WRWKHLUMLJVDZSX]]OH
3KRWRE\QHXURVRIWZDUH LQWKHGLJLWDODJH±WKHDJHRILQIRUPDWLRQ±SXEOLFOLEUDULHV
DUHLGHDOO\VLWXDWHGWRDVVXPHWKHUROHRIEXVLQHVVLQFXEDWRU
:K\"6PDUWSHRSOHFRQJUHJDWHDWSXEOLFOLEUDULHVWROHDUQDQG
VKDUHLGHDV3XEOLFOLEUDULHVDUHZKHUHTXHVWLRQVDUH

IRUPXODWHGDQGDQVZHUVDUHIRXQG3XEOLFOLEUDULHVDUHVHWXS WDNHVDQDYHUDJHRIQHDUO\WKUHH\HDUVWRDSSURYHRUUHMHFWDSDWHQW
WRSURPRWHZRQGHULQJ:RQGHUKRZOLEUDULHVFRXOGGHYHORS DSSOLFDWLRQ
JUHDWHUVXVWDLQDELOLW\":HOO\HVDGLJLWDOVHUYLFHVEXVLQHVV
WKDWZDVLQFXEDWHGDWDSDUWLFXODUOLEUDU\FRXOGKDYHD ³7KHIHHZLOOFHUWDLQO\EHQRQWULYLDO´372'LUHFWRU'DYLG.DSSRVVDLGLQ
EXVLQHVVSODQZKHUHSHUFHQWRIDOOSURFHHGVIURPWKDW DFRQIHUHQFHFDOOZLWKUHSRUWHUV
EXVLQHVVZHUHUHWXUQHGWRWKDWOLEUDU\
2WKHUHIIRUWVWRUHGXFHWKHEDFNORJKDYHLQFOXGHGDIDVWWUDFNIRUSDWHQWV
,IDSXEOLFOLEUDU\ZHUHDEOHWRVSDZQMXVWRQHVXFFHVVIXO IRUJUHHQWHFKQRORJLHVVXFKDVGLVFRYHULHVUHODWHGWRUHQHZDEOHHQHUJ\
EXVLQHVVWKDWEXVLQHVVFRXOGEULQJLQDUHYHQXHVWUHDP LQFUHDVLQJHQHUJ\HIILFLHQF\RUUHGXFLQJJUHHQKRXVHJDVHV
ODVWLQJWKHGXUDWLRQRILWVOLIH+RZORQJGREXVLQHVVHVODVW"
6RPHODVWWKUHH\HDUVVRPHODVW\HDUVVRPHODVWORQJHU 7KHSDWHQWRIILFHKDVDOVRH[SDQGHGDSURJUDPWKDWDOORZHGDQDSSOLFDQW
$QGLIDSXEOLFOLEUDU\ZHUHDEOHWRVSDZQVHYHUDOVPDOO WRZLQH[SHGLWHGUHYLHZRIDSDWHQWLQH[FKDQJHIRUDEDQGRQLQJDVHFRQG
EXVLQHVVHV±\RXJHWWKHSLFWXUH« SDWHQWDSSOLFDWLRQ7KDWSURJUDPZDVRSHQHGWRDOODSSOLFDQWVODVW
PRQWK
3KRWRE\1<3/
3KRWRE\86372
%86,1(6623325781,7,(6:(%/2*
'$01,:,6+,¶'7+28*+72)7+$7
3DWHQW2IILFH3URSRVHV
-RVK%HUQRII%ULDQ6ROLV+XJK
([SHGLWHG5HYLHZ)RU$3ULFH
-81$0 0DF/HRG-HDQ%OLVV'RXJODV
$WNLQDQG3DXO*LOOLQ²0HHW
VL[EULOOLDQWDXWKRUVLQRQHGD\
-81$0
5HXWHUVUHSRUWVWKDWFRPSDQLHVDQGLQYHQWRUVZKRSD\H[WUDZRXOGEH
DEOHWRJHWDTXLFNHUUHYLHZRIWKHLUSDWHQWDSSOLFDWLRQVXQGHUDSURSRVDO
E\WKH863DWHQWDQG7UDGHPDUN2IILFH
+RZPXFKH[WUDWKH372LVQ¶WVD\LQJ
6LWGRZQDQGKDYHOXQFKZLWKWKHPRVWEULOOLDQWDXWKRUVLQWKHZRUGRI
7KHSURSRVDO²ZKLFKLVEHLQJSXWRXWIRUSXEOLFFRPPHQW²LVSDUWRI PRXWKZRUOGDWWKH:RUGRI0RXWK6XSHUJHQLXVFRQIHUHQFHRQ-XO\
WKHSDWHQWRIILFH¶VHIIRUWWRFXWLQWRDKXJHEDFNORJRIDSSOLFDWLRQV,WQRZ LQ1HZ<RUN

+DYH\RXHYHUVHHQDFRQIHUHQFHZLWKWKLVNLQGRIWDOHQW"<RX¶GSD\WZLFH
DVPXFKWRVHHWKHVHDXWKRUV²DQGZHKDYHPRUHDPD]LQJVSHDNHUV
/RRNDWZKR\RX¶UHJRLQJWRPHHW
3DXO*LOOLQ±%WR%VRFLDOPHGLDJXUXZKRVKRZVKRZWRPDNHLWUHDO
$XWKRURI6HFUHWVRI6RFLDO0HGLD0DUNHWLQJ
%RRN±%LR±%ORJ±7ZLWWHU
+XJK0DF/HRG±&DUWRRQLVWDQGFUHDWLYHPXVHWRHQWUHSUHQHXUV
HYHU\ZKHUH$XWKRURI,JQRUH(YHU\ERG\
%ULDQ6ROLV±0HJDEORJJJHUSLRQHHUZKRZLOOKHOS\RXFRQQHFWDQG
HQJDJHZLWK\RXUIDQV$XWKRURI(QJDJH
$QG«
-HDQQH%OLVV±:KRWXUQHG/DQGV¶(QGLQWRWKHEHDFRQRI
XQPDWFKDEOHFXVWRPHUVHUYLFH$XWKRURI,/RYH<RX0RUH7KDQ0\
'RJ
-RVK%HUQRII±WKHJXUXRIELJEXVLQHVVVRFLDOPHGLDZKRNQRZVKRZ
ZRUGRIPRXWKKDSSHQVLQJOREDOHQWHUSULVHV$XWKRURI*URXQGVZHOO
'RXJODV$WNLQ±7KH0HHWXSFRPIHOORZZKRNQRZVZK\SHRSOHWDWWRR 6XSHUJHQLXVLVWKHPRVWIDQWDVWLFPDUNHWLQJFRQIHUHQFH\RX¶OOHYHUJRWR
ORJRVRQWKHLUDUPV$XWKRURI7KH&XOWLQJRI%UDQGV <RXQHHGWREHKHUH
6KDUH

6RWKHQZK\QRWGRLW"7LPH"
,I,KDGDQLFNOHIRUHYHU\WLPHVRPHRQHKDVVDLGWRPH³,GRQ¶WKDYH
WLPHIRUVRFLDOQHWZRUNLQJ,KDYHDMRE´
1RWDJUHDWH[FXVH,NQRZ%XWVWLOOWKHFU\RIPDQ\,DJUHH
817(03/$7(5 WKDWLW¶VGLIILFXOWWRVWULNHDEDODQFHEHWZHHQWDNLQJFDUHRI\RXUVHOIYV
WDNLQJFDUHRI\RXUFRPSDQ\ZKHQ\RXRQO\KDYHVRPDQ\KRXUVLQWKH
2RSV,IRUJRWWRSURPRWH GD\EXWLW¶VDQLQLWLDWLYH\RXFDQ¶WDIIRUGWRSXWRII<RXPD\EHKDSSLO\
HPSOR\HGQRZEXWZKDWDERXWLQ\HDUVRU",VWKHFRPSDQ\JRLQJWR
P\VHOIWKLVZHHN WDNHFDUHRI\RXZKHQVDOHVDUHQ¶WJRLQJZHOO"2UZKHQWKH\PHUJHRUJHW
-81$0 ERXJKWRXW"
7KLQNDERXWLW«LI\RXVSHQGKRXUVDZHHNJDUGHQLQJ\RXUVRFLDO
SURILOHVFRPPHQWLQJRQEORJVGHYHORSLQJ\RXUQHWZRUNHYHQLI\RX
QHYHUHQGXSQHHGLQJLW\RXFDQ¶WDUJXHWKDWLW¶VDSUHWW\HIIHFWLYH
LQVXUDQFHSROLF\VKRXOGVK WKLWWKHIDQ
6WD\WXQHGIRUWKHUHVXOWVIURPP\SROO$VVXPLQJSHRSOHFDQDFWXDOO\
DGPLWWR*RRJOLQJWKHLUQDPHILYHWLPHVDGD\ZHPLJKWEHVXUSULVHGDW
WKHUHVXOWVDQGKRZZHOOLW¶VZRUNHGRXWIRUWKHP
817(03/$7(5
2RSV,IRUJRWWRSURPRWH
,¶PWKLQNLQJRIFUHDWLQJDSROOIRUP\/LQNHG,QFRQWDFWVWLWOHG´+RZ
RIWHQGR\RX*RRJOH\RXURZQQDPH"´FORVHO\IROORZHGE\³+RZKDSS\ P\VHOIWKLVZHHN
DUH\RXLQ\RXUFDUHHU"´ -81$0
,QWHUHVWLQJTXHVWLRQVDQG,FDQRQO\DVVXPHWKHUHVXOWVPD\EHFORVHO\
FRUUHODWHGWR\RXUOHYHORIVHOISURPRWLRQRUDGRSWLRQRI³SHUVRQDO
EUDQGLQJ´LI\RXZLOODQGTXLWHSRVVLEO\\RXUOHYHORIFDUHHUVXFFHVV
)RUWKRVHWKDWIDOODWWKHORZHUHQGRIWKHVSHFWUXP«WKHRQHV
ZKRVD\´:RZ«$UHSHRSOHUHDOO\WKDWODPHWR*RRJOHWKHLURZQQDPH"´
,FDQDJUHH«,WLVODPH:DQQDNQRZZKDW¶VUHDOO\ODPH"7KH
SHRSOHZKRVHWWKHLUEXVLQHVV7ZLWWHUIHHGVWR)DFHERRN'R\RX
WKLQN8QFOH'UHDOO\ZDQWVWRNQRZWKHODWHVWUXQGRZQRQ)'$
UHJXODWLRQDQGFRUSRUDWHDFFRXQWDELOLW\"$QGZKDWDERXWWKDWH[
ER\IULHQGIURPKLJKVFKRRO",VKHLQWHUHVWHGLQ52,RI(QWHUSULVH"
/LNHO\QRW%XWZLOOWKH\WKLQN\RX¶UHDORVHU"3UREDEO\VR
%XWGR\RXZDQWWRNQRZZKDW¶VHYHQPRUHODPH"3HRSOHWKDWVLWDURXQG
ZDLWLQJIRUMREVWRPDJLFDOO\DSSHDULQWKHLULQER[$QGSHRSOHZKR
FRPSODLQZKHQLQHYLWDEO\WKH\GRQ¶W
,¶PWKLQNLQJRIFUHDWLQJDSROOIRUP\/LQNHG,QFRQWDFWVWLWOHG´+RZ
$WWKHULVNRIORRNLQJOLNH³RQHRIWKRVH´SHRSOHWKHYDOXHRIKDYLQJ RIWHQGR\RX*RRJOH\RXURZQQDPH"´FORVHO\IROORZHGE\³+RZKDSS\
DVXEVWDQWLDORQOLQHIRRWSULQWLVWRROXFUDWLYHWRLJQRUH,W¶VLQHYLWDEOH DUH\RXLQ\RXUFDUHHU"´
WKDWSHRSOHZKRGHYHORSDQGJDUGHQWKHLURQOLQHUHVXPHZLOOHYHQWXDOO\
EHFRPHPRUHHPSOR\DEOHDQGHYHQWXDOO\VXFFHVVIXOLQWKHLUFDUHHUV ,QWHUHVWLQJTXHVWLRQVDQG,FDQRQO\DVVXPHWKHUHVXOWVPD\EHFORVHO\
FRUUHODWHGWR\RXUOHYHORIVHOISURPRWLRQRUDGRSWLRQRI³SHUVRQDO

EUDQGLQJ´LI\RXZLOODQGTXLWHSRVVLEO\\RXUOHYHORIFDUHHUVXFFHVV 6(7+¶6%/2*
)RUWKRVHWKDWIDOODWWKHORZHUHQGRIWKHVSHFWUXP«WKHRQHV $VDGWUXWKDERXWPRVW
ZKRVD\´:RZ«$UHSHRSOHUHDOO\WKDWODPHWR*RRJOHWKHLURZQQDPH"´
,FDQDJUHH«,WLVODPH:DQQDNQRZZKDW¶VUHDOO\ODPH"7KH WUDGLWLRQDOEEPDUNHWLQJ
SHRSOHZKRVHWWKHLUEXVLQHVV7ZLWWHUIHHGVWR)DFHERRN'R\RX -81$0
WKLQN8QFOH'UHDOO\ZDQWVWRNQRZWKHODWHVWUXQGRZQRQ)'$
UHJXODWLRQDQGFRUSRUDWHDFFRXQWDELOLW\"$QGZKDWDERXWWKDWH[ ³3HRSOHZKRGRQ¶WFDUHVHOOLQJSURGXFWVWRSHRSOHZKRFDUHOHVV´
ER\IULHQGIURPKLJKVFKRRO",VKHLQWHUHVWHGLQ52,RI(QWHUSULVH"
/LNHO\QRW%XWZLOOWKH\WKLQN\RX¶UHDORVHU"3UREDEO\VR ,ZDVDWDFRQIHUHQFHUHFHQWO\ZKHUHWKHVHQLRUH[HFXWLYHVVSHQWWKH
HQWLUHGD\WDONLQJDERXWSURILWVPDUNHWVKDUHDQGJURZWKWKH\QHYHU
%XWGR\RXZDQWWRNQRZZKDW¶VHYHQPRUHODPH"3HRSOHWKDWVLWDURXQG RQFHPHQWLRQHGWKDWWKHSKDUPDFHXWLFDOVWKH\ZHUHVHOOLQJZHUHVDYLQJ
ZDLWLQJIRUMREVWRPDJLFDOO\DSSHDULQWKHLULQER[$QGSHRSOHZKR OLYHVRUWKDWFKDQJHVLQWKHSURGXFWRULWVSULFLQJFRXOGUHGXFHVLGH
FRPSODLQZKHQLQHYLWDEO\WKH\GRQ¶W HIIHFWVRUWKHORDGRQWKHSDWLHQWDQGKHUGRFWRU
$WWKHULVNRIORRNLQJOLNH³RQHRIWKRVH´SHRSOHWKHYDOXHRIKDYLQJ 7KLVGLVFRQQHFWLVEHFRPLQJOHVVFRPPRQEXWLWVWLOOKDSSHQV,W¶VRND\
DVXEVWDQWLDORQOLQHIRRWSULQWLVWRROXFUDWLYHWRLJQRUH,W¶VLQHYLWDEOH WREHSDVVLRQDWHDERXWZKDW\RXVHOOHYHQLILW¶VDQLQGXVWULDOFKHPLFDO
WKDWSHRSOHZKRGHYHORSDQGJDUGHQWKHLURQOLQHUHVXPHZLOOHYHQWXDOO\ ,W¶VRND\WREHFRQQHFWHGWR\RXUVXSSOLHUVDQGYHQGRUVHYHQLI\RX¶UH
EHFRPHPRUHHPSOR\DEOHDQGHYHQWXDOO\VXFFHVVIXOLQWKHLUFDUHHUV VSHQGLQJFRPSDQ\PRQH\WREX\IURPWKHP
6RWKHQZK\QRWGRLW"7LPH" 0DQ\EXVLQHVVHVIRFXVH[FOXVLYHO\RQVDYLQJPRQH\RUVRWKH\WKLQN

ZKHQWKH\SXEOLVKDQ5)3DQGWDNHELGVIRUWKLVSURGXFWRUWKDWVHUYLFH
,I,KDGDQLFNOHIRUHYHU\WLPHVRPHRQHKDVVDLGWRPH³,GRQ¶WKDYH ,W¶VRQO\ODWHUZKHQWKH\GLVFRYHUWKHVWLFN\JDVSHGDORUWKHFXVWRPHU
WLPHIRUVRFLDOQHWZRUNLQJ,KDYHDMRE´ DQJU\DERXWDVWRFNRXWWKDWWKH\UHDOL]HWKDWSD\LQJDWWHQWLRQWRWKHLU
VXSSOLHUVEH\RQGSULFHLVDJRRGLGHD
1RWDJUHDWH[FXVH,NQRZ%XWVWLOOWKHFU\RIPDQ\,DJUHH
WKDWLW¶VGLIILFXOWWRVWULNHDEDODQFHEHWZHHQWDNLQJFDUHRI\RXUVHOIYV ,I\RX¶YHHYHUPHWVRPHRQHZKRLVSDVVLRQDWHDERXWWD[DFFRXQWLQJRU
WDNLQJFDUHRI\RXUFRPSDQ\ZKHQ\RXRQO\KDYHVRPDQ\KRXUVLQWKH ZDUHKRXVHURRILQJV\VWHPV\RXXQGHUVWDQGWKHSRZHUWKDWWKLVSDVVLRQ
GD\EXWLW¶VDQLQLWLDWLYH\RXFDQ¶WDIIRUGWRSXWRII<RXPD\EHKDSSLO\ FDQKDYHLQWUDQVIRUPLQJDFOLHQW7KHFKDOOHQJHLVIRUWKHVXSSOLHUWRKLUH
HPSOR\HGQRZEXWZKDWDERXWLQ\HDUVRU",VWKHFRPSDQ\JRLQJWR SDVVLRQDWHSHRSOHDQGWKHQJLYHWKHPWKHURRPDQGVXSSRUWWRDFWXDOO\
WDNHFDUHRI\RXZKHQVDOHVDUHQ¶WJRLQJZHOO"2UZKHQWKH\PHUJHRUJHW FDUH
ERXJKWRXW"
³:LWKRXWDSRORJ\ZHFDUHDERXWZKDWZHPDNHDQGWKHFRPSDQLHVDQG
7KLQNDERXWLW«LI\RXVSHQGKRXUVDZHHNJDUGHQLQJ\RXUVRFLDO SHRSOHWKDWKHOSXVPDNHLW´
SURILOHVFRPPHQWLQJRQEORJVGHYHORSLQJ\RXUQHWZRUNHYHQLI\RX
QHYHUHQGXSQHHGLQJLW\RXFDQ¶WDUJXHWKDWLW¶VDSUHWW\HIIHFWLYH 1RWDQHDV\WKLQJWRVD\EHFDXVHLI\RXUHO\RQQXPEHUVDORQH\RXJHW
LQVXUDQFHSROLF\VKRXOGVK WKLWWKHIDQ GHQLDELOLW\%OLQGELGGLQJPHDQV\RXGRQ¶WKDYHWRFDUHDERXWDQ\WKLQJ
EXWSULFH$Q5)3PHDQV\RXGRQ¶WKDYHWRFRPSDUHDSSOHVDQGRUDQJHV
6WD\WXQHGIRUWKHUHVXOWVIURPP\SROO$VVXPLQJSHRSOHFDQDFWXDOO\ $QRQ\PRXVEXVLQHVVFOLHQWVPHDQV\RXGRQ¶WKDYHWRDQVZHUWKHSKRQH
DGPLWWR*RRJOLQJWKHLUQDPHILYHWLPHVDGD\ZHPLJKWEHVXUSULVHGDW ZKHQLW¶VHDVLHUWRVHQGLWWRYRLFHPDLO
WKHUHVXOWVDQGKRZZHOOLW¶VZRUNHGRXWIRUWKHP
([FHSWWKDWFDULQJZRUNV2QERWKVLGHV

7+(60$573$66,9(,1&20(%/2*
7KH%ORJ3RVW&KHFNOLVW$IWHU
<RX3XEOLVK<RXU3RVW
-81$0
,PPHGLDWHO\$IWHU3XEOLVKLQJ
'LG,UHDGP\SXEOLVKHGDUWLFOHDQGFKHFNIRUVSHOOLQJ
JUDPPDUHUURUV"
$OWKRXJKZHVKRXOGFKHFNIRUVSHOOLQJDQGJUDPPDWLFDOHUURUVEHIRUHZH
SXEOLVKRXUSRVWVZHVKRXOGDOVRGRLWDIWHUDVZHOO6HHLQJLWSXEOLVKHG
/DVWPRQWK,UHDGDJUHDWEORJSRVWRQ'DQLHO6FRFFR¶V'DLO\%ORJ7LSV DQGOLYHZLOOPDNH\RXPRUHDZDUHRIWKHGHWDLOVDQG\RXPD\ILQGVRPH
HQWLWOHG7KH%ORJ3RVW&KHFNOLVW8VH%HIRUH+LWWLQJ3XEOLVK,QLWKH PLVWDNHVWKDW\RXPD\KDYHPLVVHGZKLOHSURRIUHDGLQJ
OLVWVGLIIHUHQWWKLQJV\RXVKRXOGGRZLWKHDFKDQGHYHU\RQHRI\RXU
EORJSRVWVEHIRUH\RXWDNHWKHDUWLFOHOLYH,W¶VDYHU\WKRURXJKDQGZHOO ,I\RXGRILQGHUURUVGRQ¶WZRUU\-XVWJREDFNHGLWDQGXSGDWH
ZULWWHQSLHFHRIFRQWHQWWKDW,VXJJHVW\RXUHDGLI\RXKDYHQ¶WDOUHDG\
'LG,UHDGP\SXEOLVKHGDUWLFOHDQGFKHFNIRUIRUPDWWLQJRU
7KHUHDUHDORWRIRWKHUUHVRXUFHVRQWKHZHEDERXWZKDW\RXVKRXOGGR VSDFLQJHUURUV"
EHIRUH\RXSXEOLVK\RXUSRVWEXWWKHUHLVQ¶WWKDWPXFKLQIRUPDWLRQ
DERXWZKDWWRGRDIWHU±DWOHDVWQRWLQDQHDV\WRUHDGFKHFNOLVWIRUPDW /XFNLO\:RUG3UHVVJLYHVXVWKHDELOLW\WRSUHYLHZRXUSRVWVEHIRUHWKH\
WKDW\RXFDQXVHXQWLOWRGD\ JROLYHKRZHYHU0XUSK\¶VODZRIWHQOLNHVWRPDNHLW¶VZD\WRRXUEORJ
SRVWVDQGVFUHZXSKRZWKLQJVVKRXOGORRNHYHQZKHQZH¶YHGRQHRXU
:K\LVWKLVLPSRUWDQW" EHVWWRPDNHVXUHHYHU\WKLQJLVSHUIHFWEHIRUHZHSXEOLVK
%HFDXVHWRPHRIDEORJ¶VVXFFHVVFRPHVIURPWKHDFWXDO 2XUJUDSKLFVDUHQ¶WDOLJQHGOLQHEUHDNVDUHQ¶WZKHUHWKH\VKRXOGERU
SRVWVRQWKHEORJLWVHOI7KHRWKHUFRPHVIURPZKDW VRPHSLHFHRIFRGHLQ\RXUSRVWPDGH\RXUHQWLUHEORJORNVFUHZ\
KDSSHQVDIWHUWKDWFRQWHQWLVSXEOLVKHG :KDWHYHUWKHFDVHQRZLVWKHWLPHWRIL[LW
8QIRUWXQDWHO\PDQ\EORJJHUVWHQGWRZRUNKDUGFRUHRQO\RQWKHILUVW 7KDQNV0XUSK\
SXEOLVKDQGGRQHDQGWKHUHIRUHRQO\VHHRIWKHLUSRWHQWLDO
UHVXOWV*URZLQJDVXFFHVVIXOEORJWDNHVZRUNDQGWKHZRUNGRHVQ¶WHQG 'LG,WZHHWDERXWP\EORJSRVW"
ZLWKWKHFRQWHQWRQ\RXUVLWH)ROORZWKURXJKZLWK\RXUSRVWVDQG\RX¶OO
VHHEHWWHUUHVXOWVLQOHVVWLPH <RXVKRXOGGHILQLWHO\EHWZHHWLQJDERXW\RXUSXEOLVKHGSRVWWR\RXU
IROORZHUV
%HORZ\RX¶OOILQGDGHVFULSWLRQRIHDFKFKHFNEXW\RXFDQGRZQORDGD
3')YHUVLRQWKDW\RXFDQSULQWRXWLI\RX¶GOLNH 0DNHVXUH\RXVKRUWHQWKHXUOWR\RXUSRVWXVLQJDVLWHOLNHELWO\VR\RX
FDQNHHSWUDFNRIWKHFOLFNVWR\RXUDUWLFOHDVZHOO2U\RXFDQWZHHW
XVLQJDWKLUGSDUW\VRIWZDUHVXFKDV7ZHHWGHFNWRHDVLO\VKRUWHQWKH
OHQJWKVIRU\RXDQGNHHSWUDFNRIZKRLVUHWZHHWLQJ\RXUDUWLFOHV
:KDW\RXVD\LQ\RXUFKDUDFWHUOLPLWUHDOO\GRHVPDWWHU,W¶V\RXU³DG
FRS\ÍRU\RXUEORJSRVWDQGWKHEHWWHUFRS\\RXZULWHWKHPRUHWUDIILF
DQGEX]]\RX¶UHUHFHLYH

&KRRVH\RXUFKDUDFWHUVZLVHO\ $OVRLWHQFRXUDJHVPRUHGLVFXVVLRQEHFDXVHSHRSOHDUHPRUHOLNHO\WR
FRPPHQWNQRZLQJWKDWWKH\DUHDFWXDOO\EHLQJUHDG
'LG,VKDUHP\EORJSRVWRQ)DFHERRN"
+DYH,WKDQNHGSHRSOHRQ7ZLWWHUIRU5H7ZHHWLQJP\EORJ
,I\RXGRQ¶WNQRZZK\)DFHERRNLVVRLPSRUWDQWIRUEORJJHUVWKHQ, SRVW"
VXJJHVWUHFRPPHQGGHPDQGWKDW\RXUHDG7KH%ORJJHU¶V*XLGHWR
)DFHERRN ,I\RXWZHHWHG\RXUEORJSRVWVHHWKHQFKDQFHVDUH\RXZLOOKDYHD
IHZSHRSOHZKRUHWZHHW\RXUWZHHWWRWKHLURZQIROORZHUV7DNHD
/LNH7ZLWWHU)DFHERRNFDQEHDPDMRUVRXUFHRIWUDIILFIRU\RXUEORJ,Q PRPHQWWRWKDQNVRPHRIWKHVHSHRSOHEHFDXVHUHWZHHWLQJLVWRWDOO\
IDFWSHRSOHDUHRQ)DFHERRNPRUHWKDQDQ\RWKHUVLWHLQWKHZRUOGVR YROXQWDU\DQGFDQOHDGWRPDVVLYHDPRXQWVRIWUDIILF,I\RXWKDQNWKHP
\RX¶GEHWWHUWDNHDGYDQWDJHRIWKLVE\VKDULQJ\RXUSRVWDQGJHWWLQJLWLQ WKH\ZLOOEHPRUHOLNHO\WRUHWZHHW\RXUWZHHWVLQWKHIXWXUH
IURQWRIWKHLUH\HV
+DYH,FRPPHQWHGRQDFRPPHQWHU¶VEORJSRVW"
<RXPLJKWEHZRQGHULQJLILWZRXOGEHHDVLHUWRXVHDQDXWRPDWLF
DSSOLFDWLRQRUWRRORQ)DFHERRNWKDWGHWHFWV\RXUQHZEORJSRVWVDQG ,¶YHQHYHUVKDUHGWKLVZLWKDQ\RQHEHIRUHEXW,HQFRXUDJH\RXWRGRWKLV
SDVWHVWKHPRQWR\RXU)DFHERRN3DJH¶VZDOOIRU\RX$OWKRXJKWKLVLV WRRLI\RXDUHQ¶WDOUHDG\
HDVLHU,¶GUHFRPPHQGSRVWLQJDERXWHDFKQHZEORJSRVWPDQXDOO\DQG
VHSDUDWHO\,WZLOOVHHPPRUHSHUVRQDODQG\RXFDQDGGLQ\RXU³DG 2QHDFKRIP\EORJSRVWV,¶OOVLQJOHRXWRQHFRPPHQWHUDQGFOLFNRYHUWR
FRS\´DORQJZLWKWKHOLQNWRRSWLPL]H\RXUFOLFNWKURXJKUDWHV WKHLURZQZHEVLWH,IWKHVLWHLVQRWDEORJWKHQ,ORRNIRUDQRWKHU
FRPPHQWHU¶VVLWHXQWLO,GRODQGRQDEORJ
'LG,VKDUHP\EORJSRVWRQDOORWKHUVRFLDOPHGLDSODWIRUPV
WKDW,MRLQHG" 7KHQ,ORRNIRUDQLQWHUHVWLQJDUWLFOHUHDGLWDQGPDNHVXUHWROHDYHD
FRPPHQW
7ZLWWHUDQG)DFHERRNDUHQ¶WWKHRQO\VRFLDOPHGLDSODWIRUPVRXWWKHUH,I
\RX¶UHDSDUWRIDQ\RWKHUQHWZRUNVPDNHWKHPRVWRIWKHPDQGVKDUH :K\GR,GRWKLV"
\RXUSRVW
,WIRUFHVPHWROHDUQQHZWKLQJVIURPRWKHUSHRSOH
7LS<RXPD\EHDEOHWRXVHDVLWHOLNHSLQJIPWRHDVLO\GRWKLVDFURVVDOO
VRFLDOPHGLDSODWIRUPVIRU\RXLQRQHVKRW ,WGLVFLSOLQHVPHWRSUDFWLFHWKH³ROGDUW´RIEORJFRPPHQWLQJ
ZKLFKFDQVRPHWLPHVKHOSZLWKEDFNOLQNLQJ
'LG,VRFLDOERRNPDUNP\EORJSRVW"
0DQ\WRSEORJJHUVVHHPHGWRKDYHORVWWKHPRWLYDWLRQWROHDYH
6RFLDOERRNPDUNLQJVLWHVRIIHUDIDQWDVWLFZD\WRGULYHWUDIILFDQGJHW FRPPHQWVRQRWKHUEORJV6RZKHQ,GRLWP\VHOILWUHDOO\KHOSVPH
EDFNOLQNVWR\RXUVLWHWRR VWDQGRXWRIWKHFURZGDQGEHHYHQPRUHSHUVRQDEOHWKDQVRPHRI
WKHPRUHVXFFHVVIXOEORJJHUVRXWWKHUH
,ZRXOGEHFDXWLRXVDERXWERRNPDUNLQJP\RZQSRVWVRQWKHPDMRU
ERRNPDUNLQJVLWHVVXFKDV'LJJ6WXPEOHXSRQDQG'HOLFLRXVVLQFHWKH\ ,WVORZO\EXLOGVHYHQPRUHWUXVWZLWKP\UHDGHUV
FUDFNGRZQRQVHOISURPRWLQJERRNPDUNV
,WU\WRSLFNRXWEORJVIURPQHZFRPPHQWHUVDQGEORJJHUVEHFDXVH\RX
2WKHUVLWHVKRZHYHUDUHJUHDWIRUGULYLQJWUDIILFDQGEXLOGLQJDXWKRULW\ QHYHUNQRZZKLFKRIWKHQHZELHVZLOOHQGXSJRLQJELJVRPHGD\0D\EH
IRU\RXUSRVWLQWKHVHDUFKHQJLQHV<RXFDQXVHWKHIUHHWRRODW ZKHQWKH\JHWELJWKH\¶OOUHPHPEHUP\VPDOOJHVWXUHDQGKRRNLWXSLQ
6RFLDO0DUNHUWRHDVLO\ERRNPDUN\RXUVLWHDFURVVDQXPEHURIVRFLDO WKHIXWXUHVRPHKRZ
ERRNPDUNLQJZHEVLWHV
/DWHU$IWHU3XEOLVKLQJ
6RRQ$IWHU3XEOLVKLQJ
,IP\SRVWFRQWDLQHGDXGLRRUYLGHRKDYH,EHJXQJHWWLQJD
+DYH,UHVSRQGHGWRFRPPHQWVPDGHRQP\SRVW" WUDQVFULSWPDGHIRULW"
2QHRIWKHEHVWWKLQJV\RXFDQGRLVFRPHEDFNWR\RXUSRVWVRPHWLPH ,I\RX¶YHJRWDXGLRRUYLGHRLQ\RXUSRVWWKHQ\RXGHILQLWHO\QHHGD
ODWHUDQGUHVSRQGWRWKHFRPPHQWVWKDWRWKHUSHRSOHKDYHOHIW7KH\WRRN WUDQVFULSW,I\RX¶UHJRRGWKHQ\RX¶OODOUHDG\KDYHWKLVFRPSOHWHGEHIRUH
WKHWLPHWROHDYH\RXDFRPPHQWDQGWKHOHDVW\RXFDQGRLVVSHQGD \RXSXEOLVK\RXUSRVWVR\RXFDQLQVHUWLWLQWRWKHERG\RI\RXUFRQWHQW
OLWWOHELWRIWLPHWRDQVZHUWKHPEDFNHVSHFLDOO\LIWKH\KDYHDTXHVWLRQ IRUSHRSOHWRUHDGRUGRZQORDGLPPHGLDWHO\DIWHULWJRHVOLYH
DQGDUHORRNLQJIRUDQVZHUV
%XWVRPHWLPHVWUDQVFULSWVWDNHWLPHVRQRZLWLVJRRGWLPHWRJHW
7KLVUHDOO\KHOSVZLWKFUHGLELOLW\DQGEXLOGLQJWUXVWZLWK\RXUUHDGHUV VWDUWHGRQLW

<RXFDQZULWHLW\RXUVHOIEXW,ZRXOGVXJJHVWKLULQJDYLUWXDODVVLVWDQWWR
GRLWIRU\RX<RX¶OOVDYHDORWRIWLPH 7KDQN\RXVRPXFK
<RXFDQWKHQSXEOLVKWKLVLQDVHSDUDWHSRVWZKLFKLVJUHDWIRU6(2 7KH%ORJ3RVW&KHFNOLVW$IWHU<RX3XEOLVK<RXU3RVW

SXUSRVHVRUVLPSO\XSGDWH\RXUH[LVWLQJSRVWDQGSODFHWKHWH[WRUD
GRZQORDGOLQNWRD3')LQLW
+DYH,UHZULWWHQVXPPDUL]HGP\SRVWIRUDUWLFOH
PDUNHWLQJGLVWULEXWLRQ"
0DQ\EORJJHUVOLNHWRUHSXUSRVHWKHLUFRQWHQWDQGV\QGLFDWHLWRQWR
DUWLFOHPDUNHWLQJGLUHFWRULHV
1HYHUFRS\SDVWH\RXUEORJSRVWZRUGIRUZRUGIRUDUWLFOHPDUNHWLQJ
<RXVKRXOGDOZD\VUHZULWH\RXUFRQWHQWDQG\RXFDQHYHQSXWDOLWWOH
VSLQRQLWWRJLYHLWDIUHVKORRNZKLOHQRWKDYLQJWRVSHQGVRPXFKWLPH
ZULWLQJDWRWDOO\EUDQGQHZDUWLFOHIURPVFUDWFK
<RXVKRXOGDOVRDOZD\VLQFOXGHDOLQNWR\RXUEORJSRVWIURP\RXUDUWLFOH
WRRSWLPL]H\RXUVHDUFKHQJLQHUDQNLQJV
%HVXUHWRUHDGWKHWHUPVDQGFRQGLWLRQVRIHDFKRIWKHDUWLFOHGLUHFWRULHV
\RXFKRRVHWRZULWHRQIRUZKHUHOLQNVDUHDOORZHGWREHSXWLQWKH
DUWLFOHV
)RU<RXU5HIHUHQFH6RPHRIWKHWRSDUWLFOHPDUNHWLQJGLUHFWRULHV
LQFOXGH(]LQH$UWLFOHV*R$UWLFOHV%X]]OHDQG$UWLFOH'DVKERDUGMXVWWR
QDPHDIHZ
+DYH,FKHFNHGWKHVWDWVRQP\SDJHLQFOXGLQJWUDIILFFOLFN
WKURXJKVDQGVRXUFHV"
$IWHUVRPHWLPHLW¶VLPSRUWDQWWRFKHFNWKHVWDWLVWLFVRI\RXUSRVW%DVHG
RQZKDW\RXILQG\RXFDQDFWDFFRUGLQJO\
)RUH[DPSOHLI\RXILQGWKDW\RXUSRVWLVEULQJLQJLQPRUHWUDIILFWKDQ
QRUPDO\RXFDQILQGRXWZK\DQGJRWRWKHVRXUFHWRVHHZKDW¶VJRLQJRQ
7KHUHPD\EHPRUHRSSRUWXQLWLHVWRQHWZRUNZLWKSHRSOHRUJHWHYHQ
PRUHWUDIILFLI\RXILQGRXWZKHUHLW¶VFRPLQJIURP
$OVRLI\RXSODFHGDIILOLDWHOLQNVLQ\RXUEORJSRVW\RXFDQFKHFNWRVHH
KRZWKH\DUHFRQYHUWLQJ,I\RX¶UHJHWWLQJFOLFNVWRDSURGXFWDGD\
EXWQRVDOHVWKHQ\RXPD\ZDQWWRUHLQVHUWDGLIIHUHQWRIIHURUWU\D
GLIIHUHQWODQGLQJSDJH
+DYH,0LVVHG$Q\WKLQJ":KDWZRXOG\RXOLNHWRDGGWRWKLVOLVW"
±±±±±±±
$VDOZD\V,MXVWZDQWHGWRWKDQN\RXIRUVXEVFULELQJ7KLVEORJLVD
VXFFHVV
WKHFRQYHUVDWLRQ

-XQH
7RGD\·V7DEEORLG
%86,1(6623325781,7,(6:(%/2* FRPSDQ\¶VFDOOIRUVXEPLVVLRQVLVQRWKLQJPRUHWKDQDSXEOLF
UHODWLRQVVWXQW
,QYHQWLRQV)ORZ7R%3$QG
3KRWRE\LEWLPHV
6WRS7KHUH
-81$0
%86,1(6623325781,7,(6:(%/2*
,V7KH.LQJ2I)UHH$ERXW7R
+HOS1HZV3URYLGHUV*HW3DLG"
-81$0
7KHZRUVWRLOVSLOOLQ86KLVWRU\KDVLQVSLUHGDGHOXJHRILGHDVWR
FRQWDLQWKHRR]HFDSWKHJH\VHURUNHHSWKHVOXGJHIURPVWDLQLQJPRUH
VKRUHOLQHVUHSRUWV7DPSD%D\2QOLQH
5XGLPHQWDU\EOXHSULQWVKDYHEHHQVNHWFKHGRQVFUDSSDSHU
&RQWUDSWLRQVFREEOHGWRJHWKHULQKRPHJDUDJHV&RPSXWHU
DQLPDWHGFOLSVSRVWHGRQWKH,QWHUQHW
3ODQVKDYHFDOOHGIRUXQOHDVKLQJRLOHDWLQJEDFWHULDLQWKH 7KH1HZ<RUN7LPHVLVUHSRUWLQJWKDW*RRJOHZLOOVRRQXQYHLODRQHFOLFN
*XOIRI0H[LFRRUVSULQNOLQJRLOVRSSLQJSODQWFOLSSLQJVRQ SD\PHQWV\VWHPIRUFRQWHQWFDOOHG³1HZVSDVV´
WKHEOREV$OVRSLWFKHGLQDYLGHRSRVWHGRQ<RX7XEHZDVDQ
RLOVWDQFKLQJIDEULFUHVHPEOLQJDJLJDQWLFEDQGDJHODLGRYHU $FFRUGLQJWRWKHQHZVSDSHU/D5HSXEEOLFD*RRJOHDEUDQG
WKHVXUJLQJOHDN EXLOWRQIUHHDSSVIRUFRQVXPHUVLVFUHDWLQJWKH
LQIUDVWUXFWXUHIRUDV\VWHPWKDWZRXOGDOORZSXEOLVKHUVWR
%XWVRPHSHRSOHZKRKDYHVXEPLWWHGWKHLULGHDVWR%3VD\ FKDUJHUHDGHUVIRUFRQWHQW
WKH\GRQ¶WJHWIHHGEDFNIURPWKHSHWUROHXPJLDQWDQGZRQGHU
ZKHWKHUEXUHDXFUDWLFUHGWDSHLVVWLIOLQJWKHLUHXUHND ³/DWHUWKLV\HDU*RRJOHZLOOODXQFKDQLQWHJUDWHGSD\PHQW
PRPHQWV V\VWHPWKDWZLOODOORZXVHUVWREX\QHZVFRQWHQWZLWKRQH
FOLFNDQGSXEOLVKHUVWRXVHDVLQJOHLQIUDVWUXFWXUHIRU:HE
³,WKLQNLW¶VERJXV´:DUUHQ7LWXVRI7DPSDVDLGDERXW%3¶V PRELOHDQGWDEOHWWRPRQHWL]HWKHLUFRQWHQW´WKHDUWLFOH
VXEPLVVLRQVSROLF\ODXQFKHGYLDDWROOIUHHSKRQHOLQHDQG VXJJHVWHG
WKHFRPSDQ\¶VZHEVLWHVRRQDIWHUWKH'HHSZDWHU+RUL]RQRLO
ULJH[SORGHG$SULONLOOLQJZRUNHUV $VUHSRUWHGE\WKH,WDOLDQQHZVSDSHUXQGHUWKHSODQ
FRQVXPHUVZLOOKDYHDVLQJOHORJLQDFURVVGLIIHUHQWFRQWHQW
0RVWIHHOWKDWWKHLUVXJJHVWLRQVDUHLJQRUHGDQGWKH

VLWHVWKDWZRXOGEHIOH[LEOHHQRXJKWRDFFRPPRGDWHYDULRXV
NLQGVRISD\PHQWVLQFOXGLQJORQJWHUPVXEVFULSWLRQVDQG
RQHWLPHPLFURSD\PHQWV
$VH[SODLQHGSHRSOHZKRVXUIIRUFRQWHQWEHKLQGDSD\ZDOO
ZLOOVHHDVLQJOHLFRQQH[WWRLWDQGEHDEOHWRRQHFOLFNSD\IRU
DFFHVVVLPLODUWR*RRJOH&KHFNRXW
(YHQWKRXJKVRPHRIWKHGHWDLOVDUHQHZWKHUHKDVEHHQ
QRWKLQJVHFUHWDERXWWKHVHSODQV*RRJOHKDVEHHQVD\LQJIRU
\HDUVWKDWWKH\KDYHERWKFLYLFDQGVHOILQWHUHVWLQPDNLQJ
VXUHWKDWWKHUHLVDZHOOIXQGHGIORZRIUHOLDEOHQHZVDQG
ZLWKLQWKHODVW\HDUWKH\KDYHFRPPLWWHGRYHUDQGRYHUWR
KHOSLQJSXEOLVKHUVPDNHWKDWKDSSHQLQFOXGLQJKHOSLQJWKHP
JHWSDLGIRUWKHLUFRQWHQWLIWKDWLVWKHURDGWKH\FKRRVH
3KRWRE\*RRJOH
6KDUH
%86,1(6623325781,7,(6:(%/2*
'$01,:,6+,¶'7+28*+72)7+$7 ,QYHQWRU(OLPLQDWHVµ&UXPE\¶
*HW\RXDQG\RXUFXVWRPHUVRQ 6LWXDWLRQV
-81$0
WKHVDPHSDJH
-81$0
:HVWLQRIIHUVDUHIXQGWRDQ\JXHVWZKRZDQWVWRVNLSKRXVHNHHSLQJ
IRUDGD\
7KHRIILFLDOUHDVRQLVDERXWEHLQJJUHHQ
%XW,¶PVXUH:HVWLQVDYHVDIRUWXQHQRWKDYLQJWRFOHDQKXQGUHGVRI
URRPVHYHU\GD\
7KHLVQ¶WPXFKEXWLWVKRZVWKDWERWKVLGHVZLQRQWKHWUDQVDFWLRQ
/HVVRQ+RZFDQ\RXOHW\RXUFXVWRPHUVKDUHLQWKHXSVLGH"
7KHILUVWWKLQJWKDWDQ\FKLOGMXVWVWDUWLQJVROLGVZLOOGRLVVPHDUWKHIRRG
LQWKHLUKDLU,WLVLQHYLWDEOH1RPDWWHUKRZFOHDQ\RXUFKLOGVWDUWVWKH
PRPHQWWKH\ILQLVKVXSSHU\RXZLOOPRVWOLNHO\ILQGWKDWWKHLUIRRGKDV
EHHQVPHDUHGRQWKHLUFORWKLQJDQGPDGHLWVZD\LQWRWKHLUKDLUFUHDWLQJ
\HWDQRWKHUVWLFN\RUFUXPP\VLWXDWLRQ
:KLOH\RXFDQMXVWDVHDVLO\SLFNXSDELEIURPDQ\VWRUHWRXVHRQ\RXU
FKLOGZKHQ\RXZDQWWRDYRLGPHVVLQJXSWKHLUFORWKLQJSUHYLRXVO\WKHUH
ZDVQ¶WDSURGXFWWKDWZRXOGNHHSLWRXWRIWKHLUKDLU7KDWZDVXQWLO6XH

<HOORZWDLOWKHFUHDWRURIWKH&UXPE&DSFDPHDORQJ6KH¶VFUHDWHGD $Q\QHZSDWWHUQVZHFDQH[SHFWLQWKHQHDUIXWXUH",IVRZKDW
ZDVKDEOHHDV\WRXVHFDSWKDW\RXUFKLOGFDQZHDUWKDWZLOOKHOSSURWHFW DUHWKH\"
WKHLUKDLUIURPILQJHUVFRYHUHGLQIRRG
,¶PZRUNLQJRQQHZSDWWHUQVEXWFDQ¶WUHYHDOWKHPMXVW\HW
7HOOXVDOLWWOHDERXWWKH&UXPE&DS
:KDWPDNHV\RXUSURGXFWXQLTXH"
$IHZ\HDUVDJRP\WRGGOHUGDXJKWHUORYHGWRSXWKHUJRRH\
VWLFN\KDQGVLQKHUKDLUDWHYHU\PHDO7KHRQO\ZD\WRJHWWKH 7KHUHDUHPDQ\EDE\ELEVRQWKHPDUNHWEXWWKH&UXPE&DS
IRRGRXWRIKHUKDLUZDVWREDWKHKHUZKLFKZDVVRPHWLPHV LVWKHRQO\ELEWKDWFRYHUVWKHKHDGDQGKDLUSUHYHQWLQJ
GLIILFXOWWRGRVLQFHKHUOLWWOHVLVWHUZDVDQHZERUQDWWKH EDELHVDQGWRGGOHUVIURPVTXLVKLQJIRRGLQWKHLUKDLUGXULQJ
WLPH7KHQRQHGD\GXULQJDQLQFUHGLEO\PHVV\OXQFK, HDWLQJ
VSRWWHGKHUZLQWHUKDWQHDUE\DQGSXWLWRQKHUKHDG,W
ZRUNHGOLNHDFKDUPQRPHVV\KDLUDQGVKHGLGQ¶WPLQG :KDWDUHVRPHRIWKHOHVVRQV\RXUEXVLQHVVKDVWDXJKW\RX"
KDYLQJLWRQ,VHDUFKHGWKHLQWHUQHWORRNLQJIRUKDLUELEVIRU
EDELHVDQGWRGGOHUVDQGZDVDVWRQLVKHGZKHQ,FRXOGQ¶WILQG ,¶YHOHDUQHGWKDW\RXVKRXOGQ¶WWUXVWDPLGGOHPDQWRGHYHORS
DQ\WKLQJ6R,GHYHORSHGP\RZQILQGLQJDFRPI\ WKHPDUNHWLQWHUHVW<RX¶YHJRWWREHSUHSDUHGWRGHYHORSWKH
ZDWHUSURRIIDEULFWKDWFRXOGEHZLSHGRIIRUWKURZQLQWKH PDUNHWLQWHUHVW\RXUVHOIILUVW1RRQHZLOONQRZP\SURGXFW
ZDVKHU7KH&UXPE&DSZDVERUQRXWRIQHFHVVLW\ EHWWHURUEHPRUHSDVVLRQDWHDERXWP\SURGXFWWKDQPH
:KHQGLGLWRIILFLDOO\ODXQFK" $Q\DGYLFH\RX¶GOLNHWRRIIHUIHOORZPRPSUHQHXUVWKDWDUH
MXVWJHWWLQJWKHLUVWDUW"
0\ZHEVLWHRIILFLDOO\ODXQFKHG0DUFKWRVHOOGLUHFWO\WR
HQGXVHUVRIP\SURGXFWZKLFKDUHSDUHQWVGD\FDUHVDQG ,I\RXKDYHDQHZSURGXFWLGHDPDNHVXUH\RXGRWRQVRI
RWKHUFDUHJLYHUVRIPHVV\HDWHUV LQWHUQHWUHVHDUFKIRUH[LVWLQJSURGXFWVSDWHQWVDQGWDUJHW
PDUNHWVEHIRUHVSHQGLQJDQ\PRQH\7KH863DWHQW2IILFH
+RZORQJGLGLWWDNHIRU\RXWREULQJWKH&UXPE&DSIURPLGHD ZZZXVSWRJRYDOVRKDVDVHDUFKWRROIRUSDWHQWVDQG
WRPDUNHW" WUDGHPDUNVDQGKDVDOLVWRIOLFHQVHGSDWHQWDJHQWVDQG
DWWRUQH\VLQHDFKVWDWH:HEVLWHVDUHDPXVWQRZDQGFDQEH
,WKDVWDNHQ\HDUV,QLWLDOO\LWWRRNDERXWPRQWKVWR DJUHDWZD\WRGRDPDUNHWWHVW-XVWPDNHVXUH\RXGRQ¶W
FRPSOHWHPDUNHWUHVHDUFKDQGKDYHSURWRW\SHVDQGVDPSOHV VSHQGDORWRIPRQH\RQDZHEVLWH7KHUHDUHPDQ\RQOLQH
PDGH6LQFHP\NLGVZHUHVR\RXQJDWWKHWLPH,WXUQHGWKH FRPSDQLHVWKDWRIIHUIUHHRUORZFRVWWHPSODWHVDORQJZLWK
GHYHORSPHQWDQGPDUNHWLQJRYHUWRDODUJHFRPSDQ\WR ORZFRVWZHEKRVWLQJVHUYLFHVWKDWZLOOZRUNIRUVHOOLQJ\RXU
VHFXUHDSRWHQWLDOOLFHQVLQJDJUHHPHQW+RZHYHUDIWHUD SURGXFWRQOLQH2QFH\RXKDYHDZHEVLWHXSDQGJRLQJGR
OHQJWK\SURFHVV,ZDVXQVDWLVILHGZLWKWKHUHVXOWDQGOHYHORI VRPHUHVHDUFKRQ³PRPP\EORJJHUV´0DQ\ZLOOWU\SURGXFWV
FRPPLWPHQWVR,GHFLGHGWRWDNHP\SURGXFWWRPDUNHW ZULWHUHYLHZVDQGKRVWJLYHDZD\V7KHVHDUHJUHDW
P\VHOIDQGZDVDEOHWRJHWP\ZHEVLWHXSDQGJRLQJLQMXVWD RSSRUWXQLWLHVIRUORZFRVW35
IHZPRQWKV
:KDWZDVWKHSURFHVVOLNHIRU\RX"
,WZDVDFWXDOO\DORWRIIXQGRLQJWKHUHVHDUFKDQGGHYHORSLQJ
SURWRW\SHVDQGXOWLPDWHO\WUDQVIRUPLQJP\LGHDLQWRDQ
DFWXDOSURGXFWDQGJHWWLQJWKDWILUVWVDOH%XWVRPHWKLQJV
KDYHEHHQKDUGOLNHWU\LQJWRILQGIDEULFVXSSOLHUVDQG
FRQWUDFWVHZHUVWKDWGRQ¶WUHTXLUHKXJHPLQLPXPRUGHUV
ZKLFKFDQEHFRVWO\IRUDVWDUWXS7KHJUHDWHVWFKDOOHQJHE\
IDUWKRXJKKDVEHHQEDODQFLQJOLIHDVDVWD\DWKRPHPRPDQG
VSHQGLQJWLPHZLWKP\WKUHHNLGVZKLOHEULQJLQJP\SURGXFW
WRPDUNHW
+RZPDQ\FRORUVGHVLJQVGR\RXFXUUHQWO\KDYH"
5LJKWQRZ,KDYHWZRFRORUVSLQNDQGEOXHEXW,¶PLQWKH
SURFHVVRIDGGLQJDWOHDVWWKUHHFXWHSULQWGHVLJQVDQGWZR
PRUHFRORUV

%86,1(6623325781,7,(6:(%/2*
6(7+¶6%/2*
$'HPRQVWUDWLRQRIWKH
'RQ¶WVQRZJOREHPHEUR
-81$0 $XGLRDQDPL[9XYX]HOD
5HPRYHU
-8130
%86,1(6623325781,7,(6:(%/2*
&UHDWH<RXU2ZQ&KRFRODWH%DU
-8130
+RZLPSRUWDQWLVLW",VLWVRLPSRUWDQW\RXQHHGWRLQWHUUXSWHYHU\RQH
HYHU\VLQJOHRQHRI\RXUFXVWRPHUV"
7KHUHDUHRQO\DIHZVLJQVRQP\ZD\WKURXJKVHFXULW\\HWWKHUHRQWKH
ELJJHVWRIDOOLVDZDUQLQJDERXWVQRZJOREHV6QRZJOREHVDUH
DSSDUHQWO\DELJHQRXJKWKUHDWFDXVHIRUFRQIXVLRQWKDWWKH\JHWWKHLU 9HQWXUH%HDW
RZQVLJQ
5HWDLOHUVKDYHEHHQXVLQJWKH:HEDVDZD\WROHWVKRSSHUV
(YHU\WLPH\RXLQWHUUXSW\RXUSURVSHFWRUFRQVXPHU\RXEHWWHUDVN³LVLW FXVWRPL]HWKHLUSURGXFWVIRUDZKLOHQRZPRVWQRWDEO\LQWKH
LPSRUWDQWHQRXJK´0RVWRIWKHWLPHLW¶VQRW0RVWRIWKHWLPHWKH MHZHOU\LQGXVWU\ZLWKFRPSDQLHVOLNH%OXH1LOH$*HUPDQ
LQWHUUXSWLRQLVDVHOILVKPLVJXLGHGHIIRUWE\DFRPPLWWHHWKDWGRHVQ¶WJHW VWDUWXSFDOOHG&KRFULLVWDNLQJDVLPLODUDSSURDFKLQDOHVV
LW REYLRXVPDUNHW²FKRFRODWH$QGQRZLW¶VORRNLQJWRH[SDQG
WRWKH8QLWHG6WDWHV
<HV,NQRZWKH76$GRHVQ¶WFDUHDERXWFXVWRPHUV%XWLW¶VDJRRGOHVVRQ
IRUDQ\RQHZKRGRHV 7KHLQWHUIDFHLVSUHWW\VWUDLJKWIRUZDUG8VHUVMXVWJRWR
FUHDWHP\FKRFRODWHFRPWKHQFKRRVHIURPPHQXVRI
'RQ¶WVQRZJOREHPH,QWHUUXSWLQJHYHU\RQHVR\RXFDQSURSHUO\DOHUWRQH FKRFRODWHW\SHVIUXLWVQXWVDQGVRRQ(YHU\WKLQJ\RXDGG
SHUVRQLQDWKRXVDQGLVMXVWVLOO\ FRQWULEXWHVWRWKHSULFH²IRUH[DPSOH,FUHDWHGDEDVLF
FKRFRODWHEDUZLWKDOPRQGVDQGJXPP\EHDUVDQGWKHSULFH
FDPHRXWWRSOXVIRUVKLSSLQJ2QFH\RX¶UHGRQH
&KRFULEXLOGVWKHEDULQLWVIDFLOLW\LQ*HUPDQ\WKHQPDLOVLW
WR\RX6R\RXJHWDFKRFRODWHEDUWKDWKLWV\RXUH[DFWVZHHW
VSRW²VRWRVSHDN²DQGLW¶VSUREDEO\IUHVKHUWKDQZKDW
\RX¶GEX\LQWKHVXSHUPDUNHW

%86,1(6623325781,7,(6:(%/2*
8SFRPLQJ%RRN5HYLHZ&DVK
,Q2Q<RXU,QYHQWLRQV
-8130
/DWHUWKLVPRQWK,¶OOEHSXEOLVKLQJP\UHYLHZRIWKHVHFRQGHGLWLRQRI
7KH&RPSOHWH,GLRW¶V*XLGHWR&DVKLQJ,Q2Q<RXU,QYHQWLRQV/RRNIRU
LW
:H¶UHEULQJLQJWRJHWKHUDPD]LQJPDUNHWHUVIRU:RUGRI0RXWK
&RQIHUHQFHLQ1HZ<RUNRQ-XO\7KHGD\ZLOOIHDWXUHKRZWR
WKHQH[WGD\
2XUOLQHXSRIVSHDNHUVLQFOXGHV,/RYH<RX0RUH7KDQ0\'RJDXWKRU
-HDQQH%OLVV-HDQQHZLOOEHOHDGLQJDGLVFXVVLRQFRYHULQJVRPHRIWKH
IXQGDPHQWDOGHFLVLRQVWKDWGULYHFXVWRPHUOR\DOW\DQGRIIHUHGDIHZ
LGHDVRQKRZWRGRLWLQKHUSUHYLHZLQWHUYLHZ
6KDUH

'$01,:,6+,¶'7+28*+72)7+$7 %86,1(6623325781,7,(6:(%/2*
-HDQQH%OLVVRQ³,/RYH<RX ,GHDVIURP7ZLWWHU9XYX]HOD
0RUH7KDQ0\'RJ´²OLYH $ODUP&ORFN
-8130
:RUGRI0RXWK6XSHUJHQLXV
SUHYLHZ
-8130

7KHUHDOO\LQWHUHVWLQJSDUWRIWKHEXVLQHVVWRPHLVWKDW+DQGV2Q
*DUDJHVHOOVDEXVLQHVVRSSRUWXQLW\WRORFDOPHFKDQLFVFDOOHG³)OHHW&UHZ
0HFKDQLFV´
)OHHW&UHZ0HPEHUVDUHLQGHSHQGHQWPHFKDQLFVXVLQJWKH
+DQGV2Q*DUDJHIDFLOLW\DVWKHLUEDVHRIRSHUDWLRQV7KHVH
LQGHSHQGHQWPHFKDQLFVKDYHFRPSOHWHGDQH[WHQVLYHWUDLQLQJ
SURJUDPDW+DQGV2Q*DUDJHWREHFRPH\RXUSHUVRQDO
PHFKDQLF)RUWKHSULYLOHJHRIRSHUDWLQJDWWKH+DQGV2Q
*DUDJHDQGRZQLQJWKHLURZQ)OHHW&UHZ0HPEHUEXVLQHVV
WKH\DUHERXQGE\VSHFLILFUXOHVRIRSHUDWLRQZKLFKFUHDWHD
WUXVWZRUWK\KDUGZRUNLQJDQGIDLUHQYLURQPHQW7KHLU
SHUIRUPDQFHLVPRQLWRUHGE\XVWKURXJK\RXUIHHGEDFNWR
PHHWKLJKVWDQGDUGVDQGWKRVHKLJKVWDQGDUGVDUHSDVVHGRQ
WR\RXDQGRWKHUFOLHQWV
#VLDK
>EXVLQHVVLGHD@$YXYX]HODDODUPFORFN,WFDQJHW\RXDQG
\RXUQHLJKERUVRXWRIWKHEHGRQ0RQGD\V
%86,1(6623325781,7,(6:(%/2*
+DQGV2Q*DUDJH$'R,W 7KDQNVIRUWKHWLS\PER
<RXUVHOI*DUDJH
-8130
+DQGV2Q*DUDJHLQ0LOZDXNHH:LVFRQVLQLVDGRLW\RXUVHOIDXWR
UHSDLUJDUDJH3HRSOHFDQUHQWWKHLULQGRRUED\VDQGUHSDLUWKHLURZQ
FDUVXVLQJ+DQGV2Q*DUDJH¶VWRROV

%86,1(6623325781,7,(6:(%/2*
86,V+RPH7R0RVW
0LOOLRQDLUHV %86,1(6623325781,7,(6:(%/2*
-8130
,QYHQWRUV1HZ7ULNH
-8130
$FFRUGLQJWR%ORRPEHUJ%XVLQHVVZHHNWKHHFRQRP\PD\QRWEHDV
YLEUDQWDVLWZDVDIHZ\HDUVDJR<HWE\VRPHPHDVXUHVZHDOWKLVEDFN
&DPEULGJH1HZV
*OREDOZHDOWKKDVUHWXUQHGWRSUHFULVLVOHYHOVODUJHO\
EHFDXVHRIWKHUHFRYHU\LQVWRFNDQGERQGPDUNHWVDFFRUGLQJ .HQQHWK5R\6KHUKRGKDVGHVLJQHGDQGEXLOWWKHWULF\FOH
WRDQHZVWXG\E\WKH%RVWRQ&RQVXOWLQJ*URXS ZKLFKLVRSHUDWHGE\SHGDOVZKLFKPRYHXSDQGGRZQUDWKHU
WKDQURXQGDQGURXQGDVRQUHJXODUELF\FOHV
$VVHWVXQGHUPDQDJHPHQW²LQYHVWDEOHDVVHWVWKDWGRQRW
LQFOXGHWKHPRQH\LQLQYHVWRUV¶RZQEXVLQHVVHVUHDOHVWDWH 7KHQHZWULF\FOHLVEDVHGRQ$UFKLPHGHV¶SULQFLSOHRIOHYHUV
DQGOX[XU\JRRGV²LQFUHDVHGE\SHUFHQWWRWULOOLRQ
ODVW\HDUWKHUHSRUWIRXQG 0U6KHUKRGEXLOWWKH$UFKLPHGHV/HYHU7ULF\FOHDVD
UHWLUHPHQWKREE\DQGULGHVLWPRVWO\IRUH[HUFLVHDURXQGWKH
:HDOWKDOVRJUHZPRUHFRQFHQWUDWHG0LOOLRQDLUHKRXVHKROGV F\FOHSDWKVLQ+LVWRQZKHUHKHOLYHV+HGHVFULEHVWKHWULNH
ZKLFKUHSUHVHQWOHVVWKDQSHUFHQWRIDOOKRXVHKROGVRZQHG DVPRUHRIDVKRSSHUWKDQDUDFHUDQGLWKDVVSHHGVZKLFK
SHUFHQWRIWKHZRUOG¶VZHDOWKODVW\HDUXSIURPSHUFHQW DUHDFKLHYHGE\PRYLQJDQDWWDFKPHQWSRLQWXSDQGGRZQD
LQ OHYHU
7KHEHQHILFLDULHVRIWKLVXSWLFNLQZHDOWKLQFOXGH 7KHLQYHQWRULVQRVWUDQJHUWRGHVLJQLQJDQGEXLOGLQJ
HQWUHSUHQHXUVDQGLQGLYLGXDOLQYHVWRUVZKRVDZWKHLUQHW FRQWUDSWLRQV
ZRUWKUHERXQGDIWHUWKHILQDQFLDOIUHHIDOORIDQGHDUO\
VD\V*UHJ6NLGPRUHSUHVLGHQWDQGFKLHILQYHVWPHQW +HZRUNHGPRVWRIKLVOLIHDVDQDHURVSDFHGHVLJQHQJLQHHU
RIILFHUIRU%HOUD\$VVHW0DQDJHPHQWLQ*UHHQZLFK&RQQ DQGKDVGHVLJQHGDQGEXLOWWZRRWKHUELNHV
³%XVLQHVVRZQHUVKDYHEHHQUHDOO\TXLFNWRFKDQJHWKHLU 2QHRIWKHVHLQYROYHVDSHGDOOLQJV\VWHPIRUSHRSOHZKRFDQ
EXVLQHVVHVWRDGDSWWRWKHHQYLURQPHQW´6NLGPRUHVD\V RQO\XVHRQHOHJDQGWKHRWKHULVDUHFXPEHQWELF\FOHZKLFK
³7KH\KDYHEHHQUHLQYHVWLQJLQWKHLUEXVLQHVVHVDQGILQGLQJ DOORZVSHRSOHWRF\FOHLQDUHFOLQHGSRVLWLRQ
QHZRSSRUWXQLWLHV´
&OLFNKHUHIRUWKHYLGHR
3KRWRE\ZRUOGDWODV
6FUHHQVKRWIURP&DPEULGJH1HZV

)URP%XVLQHVV2SSRUWXQLWLHV:HEORJ %86,1(6623325781,7,(6:(%/2*
3URFWHU *DPEOH/DXQFKHV
0DOH+RPHPDNHU6LWH
-8130
%86,1(6623325781,7,(6:(%/2*
%L]RS'LJLWDO/LFHQVH3ODWHV
-8130
3URFWHU *DPEOHKDVODXQFKHGDKRXVHKROGWLSVZHEVLWHIRUWKHJURZLQJ
QXPEHURI$PHULFDQPHQZKRKDYHEHFRPHKRPHPDNHUVLQDWRXJKMRE
PDUNHWDFFRUGLQJWRD5HXWHUVUHSRUW
&DOLIRUQLDLQLWVGHVSHUDWHVHDUFKIRUUHYHQXHPLJKWEHWKHILUVWVWDWHLQ
WKHQDWLRQWRVHOODGYHUWLVLQJRQOLFHQVHSODWHV 7KHVLWH0DQRIWKHKRXVHFRPZHQWOLYHWKLVPRQWKDQGRIIHUV
WKHNLQGRIDGYLFHRQFKLOGUHDULQJFOHDQLQJDQGFRRNLQJ
,QOHJLVODWLRQDXWKRUHGE\6HQDWRU&XUUHQ3ULFHWKH'09KDVEHHQ PRUHRIWHQIRXQGLQZRPHQ¶VPDJD]LQHV
DXWKRUL]HGWRSDUWQHUZLWKLQQRYDWLRQFRPSDQLHVIRUWKHSXUSRVHRI
UHVHDUFKLQJGHYHORSLQJDQGLPSOHPHQWLQJQHZWHFKQRORJ\DWQR 7KHVLWHZLOOHYHQWXDOO\EHXVHGDVDYHKLFOHIRUDGYHUWLVLQJ
DGGLWLRQDOFRVWVWRWKH'09RU6WDWH 3 *¶VKRXVHKROGDQGRWKHUEUDQGVVDLG-HDQQLH
7KDUULQJWRQVSRNHVZRPDQIRU3URFWHU *DPEOH
7KHGHYLFHZRXOGORRNOLNHDVWDQGDUGOLFHQVHSODWHZKHQWKHFDUZDV 3URGXFWLRQV
PRYLQJEXWZKHQVHQVRUVGHWHFWWKDWWKHYHKLFOHKDVEHHQVWRSSHGIRU
PRUHWKDQIRXUVHFRQGVLWZRXOGGLVSOD\GLJLWDODGYHUWLVLQJ7KHSODWHV 7KHODXQFKFRPHVDVWKH8QLWHG6WDWHVVWUXJJOHVWRHPHUJH
FRXOGDOVRGLVSOD\$PEHU$OHUWVRUWUDIILFLQIRUPDWLRQ IURPDGRZQWXUQWKDWKLWPHQ¶VMREVHVSHFLDOO\KDUG
DFFRUGLQJWR86/DERU'HSDUWPHQWXQHPSOR\PHQW
VWDWLVWLFV
)URP%XVLQHVV2SSRUWXQLWLHV:HEORJ ³,I\RXWDNHDORRNDWWKHHFRQRP\ZKHUH\RXKDYHKDGPHQ
ZKRKDYHORVWWKHLUMREVDQGZKHUHWKH\DUHQRZHLWKHU
VKDULQJWKHUROHRISDUHQWRUEHLQJ0U0RPWKHQLWPDNHV
DQDZIXOORWRIVHQVHWRKDYHWKDWNLQGRIUHVRXUFHDYDLODEOH´
VDLG5REHUW3DVVLNRIISUHVLGHQWRIUHVHDUFKDQGFRQVXOWLQJ
JURXS%UDQG.H\V
³7KHUH¶VDIUHVKJURXSRIIRONVRXWWKHUHLQWKHVKRSSLQJ
DLVOH´
7KHVLWH¶VHGLWRU&UDLJ+HLPEXFKVD\VLWLVQ¶WRQO\IRUVWD\
DWKRPHGDGV7KHVLWHELOOVLWVHOIDVDSODFHIRUZKDW
+HLPEXFKFDOOVWKH³SRVWKXQWPDQ´²DQ\PDQVKDULQJ
FKLOGUHDULQJDQGKRPHGXWLHV²DQGHQFRXUDJHVUHDGHUVWR
³MRLQWKHUHDOPDQUHYROXWLRQ´
3KRWRE\3URFWHU *DPEOH

%86,1(6623325781,7,(6:(%/2*
%86,1(6623325781,7,(6:(%/2*
9XYX]HOD+HUR"
5XUDO(QWUHSUHQHXUV$UH2Q -8130
7KH5LVH
-8130
.DWULQD)UH\MXVWZDQWHGWRPDNHDOLWWOHH[WUDPRQH\VRVKHVWDUWHG
FRRNLQJXSVRPHMHOOLHVDQGV\UXSV%\VHOOLQJWKHPRXWRIWKHEDFNRIKHU
YDQDWWKHORFDOIDUPHUVPDUNHWVKHPDQDJHGWRPDNHWKDW\HDU
UHSRUWV$%&1HZV
7RGD\DIWHUWDNLQJKHUYHQWXUHRQOLQHDQGPRYLQJWRD
EXLOGLQJRQ0DLQ6WUHHWLQWKHVPDOOWRZQRI6WDSOHWRQWKH ,WKDGWRKDSSHQ$FWXDOO\LW¶VMXVWDSKRWRVKRSSHGFRQFHSW
PRWKHURIWKUHHZKRVHKXVEDQGLVDIDUPHUQRZJURVVHV 5LQJWRQHVDUHQH[W
D\HDU
3KRWRE\JHHNRV\VWHP
-RKQ0DUTXLVVWDUWHGKLVHQWUHSUHQHXULDOMRXUQH\IRXU\HDUV
DJRLQWKHEDVHPHQWRIKLV2JDOODOD1HEKRPHUHFUHDWLQJD
YLQWDJHPHQ¶VIUDJUDQFH7RGD\VL[RQOLQHYHQGRUVVHOOKLV
2JDOODOD%D\5XPDIWHUVKDYHDQGFRORJQHWRFXVWRPHUVLQ )URP%XVLQHVV2SSRUWXQLWLHV:HEORJ
VWDWHVDQGFRXQWULHV
0DUTXLVDQG)UH\DUHUXUDOHQWUHSUHQHXUVZKRKDYHFUHDWHG
WKULYLQJEXVLQHVVHVGHVSLWHWKHEOHDNHFRQRP\DQGWKHLURXW
RIWKHZD\ORFDWLRQV7KH\¶UHQRWWKHRQO\RQHV
,QEXVLQHVVVWDUWXSVLQWKH86UHDFKHGWKHLUKLJKHVW
OHYHOLQ\HDUVDFFRUGLQJWRWKH(ZLQJ0DULRQ.DXIIPDQ
)RXQGDWLRQD.DQVDV&LW\RUJDQL]DWLRQWKDWKHOSV
HQWUHSUHQHXUV(-5HHG\DPDQDJHULQUHVHDUFKDQGSROLF\
DWWKH.DXIIPDQ)RXQGDWLRQVDLGVPDOOEXVLQHVVHVDUHXS
DQGHQWUHSUHQHXUVKLSLQUXUDODUHDVKDVEHHQVSLNLQJWRR
³3ODFHVOLNH1HEUDVND,RZD«WKHUH¶VDORWRIJURZWKLQWKDW
DUHD´KHWROG$%&1HZVFRP
3KRWRIURP6ZDPL6WUHDP

%86,1(6623325781,7,(6:(%/2* %86,1(6623325781,7,(6:(%/2*
/HDSLQJ,QWR6HOI(PSOR\PHQW 7KHL3DG%RRN3XEOLVKLQJ
-8130
6HFUHW
-81$0
7KH1HZ<RUN7LPHVUHFHQWO\WRRNDORRNDWVHOIHPSOR\PHQWDQGWKH
SHRSOHZKRWKLQNDERXWWDNLQJWKDWVWHS
+RZFDQDVDODULHGHPSOR\HHZLWKVRPHVDYLQJVWHOOLIWKH
LGHDRIEHFRPLQJVHOIHPSOR\HGLVDYLDEOHRSWLRQDQGQRWMXVW
DQHVFDSHIDQWDV\"$QGKRZFDQDUHFHQWO\ODLGRIIHPSOR\HH
ZLWKVRPHVHYHUDQFHSD\GHWHUPLQHZKHWKHUWKLVLVWKHULJKW
WLPHWRSXUVXHKHUGUHDPRIEHLQJDQHQWUHSUHQHXU"
)LUVW\RXPXVWEHKLJKO\PRWLYDWHGWRVHOODVSHFLILFSURGXFW
RUVHUYLFHWKDW\RXUUHVHDUFKKDVIRXQGWREHPDUNHWDEOH$QG
$FFRUGLQJWR9HQWXUH%HDWDVSLULQJERRNDXWKRUVIDFHWZRKXUGOHV
\RXUEXVLQHVVLGHDVKRXOGEHEDVHGRQH[SHUWLVHWKDW\RX
5HMHFWLRQIURPSXEOLVKHUVDQGWKHKLJKFRVWDQGKDVVOHRIWU\LQJWR
DOUHDG\KDYHVDLG6XVDQ8UTXKDUW%URZQDXWKRURI³7KH
SXEOLVKDERRNWKHPVHOYHV6HOISXEOLFDWLRQFRPSDQ\)DVW3HQFLOKDV
$FFLGHQWDO(QWUHSUHQHXU´DQGDFDUHHUFRDFK/HDUQLQJKRZ
FRPHXSZLWKDFOHYHUQHZRSWLRQ$XWKRUVZKRVLJQXSZLWK)DVW3HQFLO
WRUXQDEXVLQHVVLVKDUGHQRXJKZLWKRXWDOVROHDUQLQJDQHZ
FDQQRZSXEOLVKWKHLUERRNVGLUHFWO\LQWR$SSOH¶VL%RRNVFDWDORJ
VNLOOIURPVFUDWFKVKHVDLG
1RSHUPLVVLRQUHTXLUHG´&72DQGFRIRXQGHU0LFKDHO
6RPHVRRQWREHHQWUHSUHQHXUVFRPHXSZLWKDVROXWLRQWRD
$VKOH\WROGPHLQDSKRQHLQWHUYLHZ³$Q\RQHFDQXSORDGD
EXVLQHVVSUREOHPDQGILQGWKHLUFRPSDQ\LVXQZLOOLQJWR
PDQXVFULSWWR)DVW3HQFLOFOLFNDIHZEXWWRQVDQGKDYHDFFHVV
SXUVXHLWVDLG:LOOLDP$6DKOPDQDSURIHVVRURIEXVLQHVV
WRDIHZPLOOLRQUHDGHUVIRUXQGHUWZRKXQGUHGEXFNV´
DGPLQLVWUDWLRQDW+DUYDUG%XVLQHVV6FKRROZLWKDIRFXVRQ
HQWUHSUHQHXUVKLS
8QOLNHDSSV$SSOHGRHVQ¶WUHYLHZERRNVLQGLYLGXDOO\
)DVW3HQFLOLVDQDSSURYHGSXEOLVKHUVRLI)DVW3HQFLO
³7KHUH¶VDPLVPDWFKEHWZHHQZKDWWKH\¶UHSDVVLRQDWHDERXW
SXEOLVKHV\RXUERRNLWJRHVULJKWLQWRWKHL%RRNVFDWDORJ
DQGIHHORXJKWWREHGRQHDQGZKDWWKHFRPSDQ\LVSUHSDUHG
WRVXSSRUW´KHVDLG
2QHPRUHWKLQJ)DVW3HQFLOQHLWKHURIIHUVDGYDQFHVQRUWDNHV
DQXSIURQWFKDUJH7KHFRPSDQ\¶VEXVLQHVVPRGHOEH\RQG
0RWLYDWLRQGULYHSDVVLRQ²WKHVHZRUGVDUHRIWHQXVHGLQ
WKHVXEVHWXSSULFHLVDUHYHQXHVKDUHRQLQGLYLGXDO
FRQQHFWLRQZLWKHQWUHSUHQHXUV³7KH\QHHGWREHSDVVLRQDWH
VDOHV³:HGRQ¶WPDNHPRQH\XQWLOWKHDXWKRUPDNHVPRQH\´
DERXWZKDWWKH\GREHFDXVHWKDWZLOOFDUU\WKHPWKURXJKWKH
$VKOH\SXWLW
WRXJKWLPHV´0V8UTXKDUW%URZQVDLG
3KRWRE\QHXURVRIWZDUH
3KRWRE\FOVSHDFH

%86,1(6623325781,7,(6:(%/2* 3KRWRE\1<3/
3XEOLF/LEUDULHV$V%L]
,QFXEDWRUV )URP%XVLQHVV2SSRUWXQLWLHV:HEORJ
-81$0
3KLO6KDSLURDW3&:RUOGVXSSRVHV\RXKDYHDQLGHDIRUDQHZGLJLWDO
VHUYLFHVEXVLQHVV±DEXVLQHVVWKDWGHOLYHUVVRPHYDOXHWRRWKHUVRYHUWKH
,QWHUQHW
1RPDWWHUKRZJRRG\RXULGHDPLJKWEHJHWWLQJVXFKD
EXVLQHVVRIIWKHJURXQGUHTXLUHVDJLYHQDPRXQWRIFDSLWDO
$QGWKLVEXVLQHVVPLJKWUHTXLUHEXVLQHVVVNLOOVWKDW\RXGR
QRWSRVVHVV<RXFRXOGFKHFNDURXQGZLWKIULHQGVWRVHHLIDQ\
RIWKHPDUHLQWHUHVWHGLQMRLQLQJ\RXLQVXFKDYHQWXUHEXW
\RXFRXOGVSHQGPRQWKVILQGLQJWKHULJKWIULHQGVZKRDUH
LQWHUHVWHGDQGDYDLODEOH
(YHU\EXVLQHVVLVDMLJVDZSX]]OHWKDWUHTXLUHVMXVWWKHULJKW
SLHFHVWRILWWRJHWKHU7RKHOSWKRVHSLHFHVILWWRJHWKHUWKH
FRQFHSWRIWKHEXVLQHVVLQFXEDWRUZDVERUQ7KHIXQFWLRQRID
EXVLQHVVLQFXEDWRULVWRLGHQWLI\SURPLVLQJEXVLQHVVLGHDV
DQGWKHQDVVLVWHQWUHSUHQHXUVLQVXSSO\LQJWKHPLVVLQJSLHFHV
WRWKHLUMLJVDZSX]]OH
LQWKHGLJLWDODJH±WKHDJHRILQIRUPDWLRQ±SXEOLFOLEUDULHV
DUHLGHDOO\VLWXDWHGWRDVVXPHWKHUROHRIEXVLQHVVLQFXEDWRU
:K\"6PDUWSHRSOHFRQJUHJDWHDWSXEOLFOLEUDULHVWROHDUQDQG
VKDUHLGHDV3XEOLFOLEUDULHVDUHZKHUHTXHVWLRQVDUH
IRUPXODWHGDQGDQVZHUVDUHIRXQG3XEOLFOLEUDULHVDUHVHWXS
WRSURPRWHZRQGHULQJ:RQGHUKRZOLEUDULHVFRXOGGHYHORS
JUHDWHUVXVWDLQDELOLW\":HOO\HVDGLJLWDOVHUYLFHVEXVLQHVV
WKDWZDVLQFXEDWHGDWDSDUWLFXODUOLEUDU\FRXOGKDYHD
EXVLQHVVSODQZKHUHSHUFHQWRIDOOSURFHHGVIURPWKDW
EXVLQHVVZHUHUHWXUQHGWRWKDWOLEUDU\
,IDSXEOLFOLEUDU\ZHUHDEOHWRVSDZQMXVWRQHVXFFHVVIXO
EXVLQHVVWKDWEXVLQHVVFRXOGEULQJLQDUHYHQXHVWUHDP
ODVWLQJWKHGXUDWLRQRILWVOLIH+RZORQJGREXVLQHVVHVODVW"
6RPHODVWWKUHH\HDUVVRPHODVW\HDUVVRPHODVWORQJHU
$QGLIDSXEOLFOLEUDU\ZHUHDEOHWRVSDZQVHYHUDOVPDOO
EXVLQHVVHV±\RXJHWWKHSLFWXUH«

-XQH
7RGD\·V7DEEORLG
%86,1(6623325781,7,(6:(%/2* WUDQVDFWLRQVEXWFDQ¶WJHWWKURXJKGXHWRWKHGHQLDORI
VHUYLFHDWWDFN,IWKHWUDQVDFWLRQVDUHQ¶WDSSURYHGWKH
3KRQH6FDP7DUJHWV<RXU%DQN FULPLQDOVZLOOFRQWDFWWKHILQDQFLDOLQVWLWXWLRQSRVHDVWKH
YLFWLPDQGFRQILUPWKHWUDQVDFWLRQV7KH\FDQDOVRDGGWKHLU
$FFRXQW RZQSKRQHQXPEHUWRYLFWLPV¶DFFRXQWVDQGVLPSO\ZDLWIRU
-81$0 WKHEDQNWRFDOODQGUHTXHVWDSSURYDO%\WKHWLPHWKHYLFWLP
RUILQDQFLDOLQVWLWXWLRQUHDOL]HVZKDWKDVKDSSHQHGLW¶VWRR
ODWH
7RDYRLGEHLQJDYLFWLPRIWKLVQHZVFDPJRKHUH
3KRWRE\XVJRY
'$01,:,6+,¶'7+28*+72)7+$7
,¶PJRLQJWRWHDFK\RXKRZWR
PDNHORYH
-81$0
7KH)%,LVZDUQLQJFRQVXPHUVWREHRQWKHDOHUWIRUVFDPPHUVZKRWLHXS
WKHLUSKRQHOLQHVZKLOHHPSW\LQJWKHLUEDQNDFFRXQWV:DOOHW3RSUHSRUWV <RXZDQWWRVSUHDG\RXULGHDVWRWKHHQGVRIWKHHDUWK²EXW
XQIRUWXQDWHO\JRRGLGHDVGRQ¶WDOZD\VJHWWKHUHFRJQLWLRQWKH\GHVHUYH
+LJKWHFKFULPLQDOVDUHQRZXVLQJDXWRPDWHGGLDOLQJ
SURJUDPVDQGPXOWLSOHDFFRXQWVWRRYHUZKHOPWKHSKRQH ,I\RXZDQWSHRSOHWDONLQJDERXW\RX\RXQHHGWRPDNHWKHPIDOOLQORYH
OLQHVRIXQVXVSHFWLQJFRQVXPHUVDQGVPDOODQGPHGLXP ²ZLWK\RXDQG\RXULGHD
VL]HGEXVLQHVVHV
/29(PDNHVSHRSOHWDON
7KHGHQLDORIVHUYLFHFDOOVZKLFKFDQLQFOXGHGHDGDLU
DGYHUWLVHPHQWVRUSKRQHVH[PHQXVDUHDFWXDOO\GLYHUVLRQDU\ 1RRQHWDONVPRUHWKDQDWHHQDJHULQORYH([FHSWPD\EHDWHFKLHZLWKD
WDFWLFVGHVLJQHGWRWLHXSDYLFWLP¶VSKRQHOLQHV$QGZKLOHWKH QHZL3DG
OLQHVDUHEXV\WKHIUDXGVWHUV²LPSHUVRQDWLQJWKHYLFWLPV²
UDLGWKHLUEDQNDFFRXQWVRQOLQHWUDGLQJDQGRWKHUPRQH\ <RXQHHGWRKHOSWKDWORYHDORQJ²DQGWKDWWDNHVZRUGRIPRXWK
PDQDJHPHQWDFFRXQWV PDUNHWLQJZKLFKLVZKDW,WHDFK
:HHNVRUHYHQPRQWKVEHIRUHWKHSKRQHFDOOVVWDUWWKH)%, &RPHOHDUQKRZWRPDNHSHRSOHIDOOLQORYHZLWK\RXUFRPSDQ\DWRXU
ZDUQVDFULPLQDOXVHVVRFLDOHQJLQHHULQJWDFWLFVRUPDOZDUH :RUGRI0RXWK6XSHUJHQLXVFRQIHUHQFHRQ-XO\LQ1<&
WRH[WUDFWSHUVRQDOLQIRUPDWLRQVXFKDVSDVVZRUGVDQG
DFFRXQWQXPEHUVIURPLQWHQGHGYLFWLPV2QFHWKHVFDP +HUH¶VDSUHYLHZRIP\NH\QRWH
DUWLVWVKDYHHQRXJKLQIRUPDWLRQWKH\WLHXSWKHYLFWLP¶V
YDULRXVSKRQHOLQHVDQGHLWKHUFRQWDFWDILQDQFLDOLQVWLWXWLRQ
SUHWHQGLQJWREHWKHYLFWLPRUVLSKRQRIIIXQGVIURPWKHLU
RQOLQHEDQNDFFRXQWV
)LQDQFLDOLQVWLWXWLRQVW\SLFDOO\FDOOWRYHULI\VXFK

:HDOVRDUHORRNLQJDWKDYLQJWZRORFDWLRQLQGHSHQGHQWFDUHHUV7KLV
6KDUH PRELOHLQFRPHFDQIURPIUHHODQFHZRUNOLNHZKDW,¶PGRLQJQRZRU
ZRUNLQJUHPRWHO\,W¶VDSURFHVVZH¶UHZRUNLQJWKURXJKDQGE\EHLQJRQ
WKHVDPHSDJHZH¶UHKRSLQJWRDFKLHYHLWWRJHWKHU

'R\RXKDYHDV\VWHPWRKDQGOH\RXUILQDQFHV",W¶VGLIILFXOWWR
PDNHSURJUHVVDVDFRXSOHLI\RXGRQ¶WKDYHVRPHVRUWRIILQDQFLDOV\VWHP
LQSODFH,WGRHVQ¶WKDYHWREHVWULFWO\GHILQHGRUPLFURPDQDJHG(DFK
817(03/$7(5 IDPLO\KDVLWVRZQUK\WKPDQGURXWLQH
%HLQJ2SHQDVD)DPLO\ZLWK <RXFDQVLPSO\DXWRPDWH\RXUELOOSD\PHQWVLQYHVWPHQWVVDYLQJVHWF
DQGKDYHDV\VWHPRQFKHFNLQJXSRQWKDW<RXFDQKDYHVRPHRQHEHLQ
)LQDQFHV FKDUJHRIUHVHDUFKLQJLQYHVWPHQWRSWLRQVDQGVRPHRQHORRNDWFXWWLQJ
-81$0 PRQWKO\H[SHQVHV'RQ¶WZRUU\LILW¶VZKDWRWKHUSHRSOHDUHGRLQJMXVW
ZRUU\LILW¶VQRWZRUNLQJIRU\RX
&RPPXQLFDWLRQ3URGXFWLYHO\RQ<RXU)LQDQFHV
3LFNWKHULJKWWLPHWRGLVFXVV\RXUILQDQFHV%HZLVHDERXWZKHQ
\RXVLWGRZQDQGKDYHDFKDW:RUNRXWDWLPHWKDW\RXFDQERWKDJUHH
RQDQGVHWDOLPLWRQKRZORQJLWZLOOWDNH<RXGRQ¶WKDYHWRWDFNOHHYHU\
LVVXHLQRQHPHHWLQJ.HHSLWWRPLQXWHVRUOHVVDQGKDYHRQHJRDOWKDW
\RX¶GOLNHDFFRPSOLVKHG.HHSLQJLWVKRUWKHOSV\RXWRNHHSWRWKHSRLQW
+RZ\RXIUDPHWKHLVVXHPDWWHUV0RQH\FDQEHDGHOLFDWHVXEMHFW
DVPDQ\RIXVKDYHGHYHORSHGKDELWVRYHUWLPHXQGHUVWDQGWKDWWKLQJV
ZRQ¶WFKDQJHRYHUQLJKWDQG\RXQHHGWROLVWHQ,¶YHIRXQGSDUDSKUDVLQJ
ZKDWP\KXVEDQGVD\VDVDQHIIHFWLYHZD\WRPDNHVXUHZH¶UHRQWKH
VDPHSDJH
:ULWHGRZQRQFH\RXDJUHHRQVRPHWKLQJ7KLVLVDXVHIXOWRROWR
0RQH\DQGPDUULDJHKDVEHHQDSRSXODUWRSLFRQSHUVRQDOILQDQFHVLWHV KHOSERWKRI\RXVHHZKDW\RXQHHGWRGR$IWHUGHILQLQJ\RXUJRDOFKHFN
6PDUW0RQH\FRQGXFWHGDVWXG\RQFRXSOHVDQGWKHLUGLVFXVVLRQRQ LQZLWKRQHDQRWKHUWRVHHLI\RX¶UHERWKZRUNLQJWRZDUGVLW
ILQDQFHVDQGIRXQGWKDWGRLWRQDZHHNO\EDVLV7KHSUREOHPLVKRZ
ZH¶UHWDONLQJDQGDSSURDFKLQJRXUILQDQFHV &HOHEUDWHWKHYLFWRULHVELJDQGVPDOO'LG\RXERWKRSHQDQ,5$"
'LG\RXSD\RIIDFUHGLWFDUGELOO"0DNHVXUH\RXFHOHEUDWHWKHZLQV\RX
0RQH\0DJD]LQHUDQDVXUYH\DQGIRXQGWKDWRIUHVSRQGHQWVVD\ KDYHWRJHWKHU0RQH\VKRXOGQ¶WDOZD\VEHDERXWZRUNDQGVDFULILFH
PRQH\FDXVHVWHQVLRQZLWKWKHUHODWLRQVKLS%HLQJRSHQDVDIDPLO\RQ
SHUVRQDOILQDQFHVLVDELJLVVXHWRWDFNOH,W¶VSRVVLEOHWRKDYHILQDQFLDO <RXU7KRXJKWVRQ)DPLO\DQG)LQDQFHV
GLVFXVVLRQVZLWK\RXUIDPLO\ZLWKRXWVWDUWLQJDILJKWLWWDNHVSODQQLQJ
DQGWLPHRQERWKVLGHV +RZGR\RXKDQGOHGLVFXVVLQJILQDQFHVDVDIDPLO\":KDWKDVZRUNHG"
:KDWKDVEDFNILUHG"
'HILQH<RXU*RDOV
:KDWGR\RXWZRKRSHWRDFFRPSOLVK"3HRSOHPD\ILJKWRYHU
PRQH\EXWPDQ\WLPHVWKH\DUHILJKWLQJRYHUELJJHULVVXHV'HILQLQJ
\RXUJRDOVFDQDOOHYLDWHVRPHRIWKHSUHVVXUH,WLVGLIILFXOWWR
FRPPXQLFDWHRSHQO\DVDFRXSOHRQILQDQFHVLI\RX¶UHQRWRSHQZKDW\RXU
JRDOV
2XUILQDQFLDOJRDOVIRUH[DPSOHLQFOXGHEHLQJGHEWIUHHH[FHSWZLWK
KRXVHZLWKLQ\HDUV5LJKWQRZZHKDYHVWXGHQWORDQV,DFFXPXODWHG
:HKDYHQRFDUORDQVDQGZHGRQ¶WKDYHFUHGLWFDUGGHEW7RDFFRPSOLVK
WKHJRDOZHFDPHXSZLWKDSODQDQGZH¶UHZRUNLQJWKURXJKLW

7+(60$573$66,9(,1&20(%/2* LQWHUQHWHQWUHSUHQHXUVWRGHFUHDVHWKHFKDQFHVRISHRSOHOHDYLQJRXU
VLWHVZKHQWKH\GRUHDFKD3DJHZKLFK,¶OORXWOLQHIRU\RXEHORZ
$UH<RX2SWLPL]LQJ<RXU
+RZWR2SWLPL]H<RXU3DJH
3DJH"<HV<RXU3DJH
-81$0 %HIRUHDQ\WKLQJ\RXVKRXOGWDNHDOOWKHQHFHVVDU\SUHFDXWLRQVWRPDNH
VXUH\RXUOLQNVDUHDOOW\SHGLQFRUUHFWO\DQGWKDW\RXGRQ¶WKDYHDQ\
EURNHQOLQNVRQ\RXUVLWH<RXFDQXVHDWRROOLNH*RRJOH:HEPDVWHU
7RROVWRGRKHOS(YHQDIWHUWKDWSHRSOHFDQVWLOOODQGRQ\RXUSDJH
E\PLVW\SLQJD85/RUFOLFNLQJRQDPLVVSHOOHGOLQNIURPDVLWHRWKHU
WKDQ\RXURZQ
2Q\RXU3DJH7HPSODWHLWVHOIWKHUHDUHDQXPEHURIWKLQJV\RXFDQ
GR
,QFOXGHIULHQGO\WH[WWKDWFOHDUO\PHQWLRQVWKDWWKHSDJH
WKH\ZHUHORRNLQJIRUFDQQRWEHIRXQGEXWWKDW\RX¶UH
DOVRZLOOLQJWRKHOSWKHPILQGZKDWWKH\ZHUHORRNLQJIRU
6RPHWKLQJRWKHUWKDQ³3DJHQRW)RXQG´ZLOOUHDOO\PDNHD
GLIIHUHQFHDQGJHWSHRSOHWRHQJDJHZLWK\RXRQ\RXUSDJHHYHQ
WKRXJKLWZDVQ¶WH[DFWO\ZKDWWKH\ZHUHORRNLQJIRU7KHQ\RXFDQ
NHHSWKHPRQ\RXUVLWHUHDGLQJFRQWHQWXVLQJWKHVWXIIEHORZ
:KHQ\RXYLVLWDQRQH[LVWHQW85/RQDZHEVLWH\RX¶OORIWHQFRPHIDFH
WRIDFHZLWKDQHUURUVLPLODUWRWKHIROORZLQJ
,QFOXGHDVHDUFKIXQFWLRQIRUWKHFRQWHQWRQ\RXUVLWH,W¶V
DOZD\VQLFHWRJLYHSHRSOHDQRSWLRQWRVHDUFKHVSHFLDOO\LIWKH\
³2RSV:HFRXOGQ¶WILQGZKDW\RXZHUHORRNLQJIRU´
ZHUHORRNLQJIRUVRPHWKLQJVSHFLILFDQGGRQ¶WNQRZZKHUHHOVHWR
JR
RU«
,QVHUW\RXUPRVWSRSXODUSRVWV7KHVHSRVWVDUHWKHPRVW
³3DJHQRWIRXQG´
SRSXODUIRUDUHDVRQVRWKH\¶OOJLYH\RXWKHEHVWFKDQFHRINHHSLQJ
SHRSOHRQ\RXUVLWH
:KDW\RX¶UHDFWXDOO\VHHLQJZKHQ\RXFRPHDFURVVWKLVHUURULVWKH³
3DJH´ZKLFKLVDSDJHWKDW\RXUEURZVHUJRHVWRZKHQWKHSDJH\RXZHUH
,QVHUW\RXUPRVWUHFHQWSRVWV
ORRNLQJIRUZDV±ZHOO±QRWIRXQG
,QFOXGHWKHFDWHJRULHVRUWDJVRI\RXUEORJ
&RPPRQUHDVRQVIRUODQGLQJRQDSDJHLQFOXGH
,QFOXGHDQRSWLQIRUPIRUDQHZVOHWWHU
$PLVSODFHGOHWWHURUPLVVSHOOHGZRUGLQWKH85/ZKHQW\SLQJ
PDQXDOO\LQWRWKHEURZVHU¶VDGGUHVVEDU
,QFOXGHDQ$GYHUWLVHPHQWRU3URPRWLRQDOLWHP±,ZRXOGQ¶W
UHFRPPHQGWKLVEXWLWLVDQRSWLRQ7KLVPLJKWZRUNEHFDXVHLIWKH
$PLVSODFHGOHWWHURUPLVVSHOOHGZRUGLQDQH[LVWLQJOLQN
YLVLWRUZDVSODQQLQJRQOHDYLQJDQ\ZD\VEHFDXVHWKH\FRXOGQ¶W
ILQGZKDWWKH\ZHUHORRNLQJIRU\RXFDQWU\WRJHWWKHPWRFOLFNRQ
7KHOLQNRU85/LVW\SHGFRUUHFWO\EXWWKHSDJHMXVWQRORQJHU
DQDGRUJRVRPHZKHUHHOVHWKDWPD\KHOS\RXHDUQDOLWWOHELWRI
H[LVWVDNDEURNHQOLQN
FDVK,ZDQWWRNHHSUHDGHUVRQP\VLWHVRWKLVWHFKQLTXHLVQRWIRU
PHEXW,MXVWZDQWHGWRWKURZLWRXWWKHUHIRU\RX
$UHGLUHFWLRQHUURU
$OVRLW¶VLPSRUWDQWWRPDNHVXUH\RXGHVLJQ\RXUSDJHWRKDYHD
:KDWHYHUWKHSDWKPD\EHZKHQSHRSOHODQGRQ\RXU3DJHWKH\ZLOO
VLPLODUVW\OHDQGVWUXFWXUHDVWKHUHVWRI\RXUZHEVLWHVRYLVLWRUVZRQ¶W
PRVWOLNHO\H[LW\RXUVLWH
IHHOOLNHWKH\¶YHEHHQNLFNHGRIIRI\RXUVLWH
,W¶VVDGEXWWUXH3HRSOHDUHVSRLOHGHVSHFLDOO\ZKHQLWFRPHVWR
/DVWO\LI\RX¶UHVOLFN\RXFDQLQFOXGHDIRUPRQ\RXUSDJHWRUHSRUW
VHDUFKLQJDQGVXUILQJRQOLQHVRZKHQWKH\GRQ¶WLPPHGLDWHO\ILQGZKDW
EURNHQOLQNVWR\RX
WKH\¶UHORRNLQJIRU±LW¶VRQWRWKHQH[WWKLQJOLNHWKHUH¶VQRWRPRUURZ
+RZ'R<RX'HVLJQDQ2SWLPL]HG3DJH"
+RZHYHUWKHUHDUHWKLQJVZHFDQGRDVZHEVLWHRZQHUVEORJJHUVDQG

7KHHDVLHVWDQGPRVWKDVVOHIUHHZD\WRRSWLPL]H\RXU3DJHZRXOG LPSOHPHQWWKLVVWUDWHJ\0DQ\DUHVWLOOXVLQJWKHSODLQRO¶3DJH
EHWRRXWVRXUFHLWWR\RXUZHEGHVLJQHURUILQGVRPHRQHRQ(ODQFHRU WHPSODWH
2GHVNWRGRLWIRU\RX6LPSO\WHOOWKHPZKDW\RXZDQWRQWKHSDJHDQG
ERRP±GRQHLQOHVVWKDQDQKRXULIWKH\NQRZZKDWWKH\¶UHGRLQJ ,KRSH\RXIRXQGWKLV³QRWVRFRPPRQ´WLSXVHIXO$VDOZD\VWKDQN\RX
IRU\RXUVXSSRUW
%XWVLQFH,NQRZDORWRI\RXUDUHFXULRXVRUMXVWGRQ¶WZDQWWRGHDOZLWK
RXWVRXUFLQJ,¶PKDSS\WRVKDUHZLWK\RXH[DFWO\ZKDWWKHFRGHRQP\ ,IWKLVLV\RXUILUVWWLPHYLVLWLQJWKLVEORJSOHDVHVXEVFULEHWRP\566
RZQ3DJHWHPSODWHORRNVOLNH )HHG&KHHUV
,I\RX¶UHUXQQLQJD:RUG3UHVVEORJHYHU\WKHPH,EHOLHYHKDVD

7HPSODWHWKDW\RXFDQHGLWZKLFKFDQEHYLHZHGLQWKH$SSHDUDQFH! ±±±±±±±
(GLWRUDUHDDQGWKHQORRNLQJXQGHU7HPSODWHVRQWKHULJKWKDQGVLGH $VDOZD\V,MXVWZDQWHGWRWKDQN\RXIRUVXEVFULELQJ7KLVEORJLVD
VXFFHVV
WKHFRQYHUVDWLRQ
7KDQN\RXVRPXFK
$UH<RX2SWLPL]LQJ<RXU3DJH"<HV<RXU3DJH
7\SLFDOO\LWZLOOKDYHFRGHWKDWORRNVVRPHWKLQJOLNHWKLV 6(7+¶6%/2*
$FDULVQRWPHUHO\DIDVWHU
KRUVH
-81$0
$QGHPDLOLVQRWDIDVWHUID[$QGRQOLQHSURMHFWPDQDJHPHQWLVQRWD
ELJJHUZKLWHERDUG$QG)DFHERRNLVQRWDQHOHFWURQLFURORGH[
3OD\DQHZJDPHQRWWKHROGHUJDPHEXWIDVWHU
%86,1(6623325781,7,(6:(%/2*
7KLVLV\RXUSODLQMDQHFRGHDQGLWGHILQLWHO\QHHGVDQXSGDWH
*UHDW0DUNHWLQJ)O\HUIRU
,QVWHDGRISDVWLQJP\RZQ,¶YHDWWDFKHGLWKHUHLQDWH[WILOHLQULFKWH[W
'HQWLVWV
IRUPDWVR\RXFDQGRZQORDGLWDQGXVHLWDV\RXZLVK1RWHWKDWLWPD\ -8130
RUPD\QRWZRUNSHUIHFWO\ZLWK\RXUVEHFDXVH\RXPD\KDYHGLIIHUHQW
SOXJLQVLQVWDOOHGRUDGLIIHUHQWYHUVLRQRI:RUG3UHVVZKLFKPD\DIIHFW
WKHFRGHVRPHKRZEXWZKDWHYHU\RXGRLI\RXSODQWRPDNHFKDQJHV
\RXUVHOISOHDVHVDYHZKDW\RXKDGLQDVHSDUDWHWH[WILOHMXVWLQFDVH
,I\RXZDQWWRVHHP\3DJHOLYHMXVWDGGVRPHUDQGRPWH[WWRWKH
HQGRIWKLVSRVW¶VXUOLQ\RXUEURZVHUDQGSUHVVHQWHU
,ZRQ¶WPHQWLRQDQ\VSHFLILFVLWHVEXW,ZHQWDKHDGDQGWULHGDGGLQJ
UDQGRPWH[WRQWRWKHHQGVRIRWKHUSRSXODUVLWHV¶XUOVDQGZDVVXUSULVHG
WRVHHWKDWQRWDOORIWKHWRSEORJJHUVDQGWRSZHEVLWHVWKDW,YLVLWDFWXDOO\

7KHDYHUDJHFRVWRIDZHGGLQJLQ0DVVDFKXVHWWVE\
FRPSDULVRQLVFORVHUWRDFFRUGLQJWRWKHUHVHDUFK
FRPSDQ\WKH:HGGLQJ5HSRUW,QF
³,W¶VDJUHDWUHYHQXHJHQHUDWRU´VDLG&KULVWLQH.HOO\D%HVW
:HVWHUQVDOHVGLUHFWRU6KHHVWLPDWHGWKHZHGGLQJRI7DQPD\
DQG'LY\D3DWHOWKDW6DWXUGD\EURXJKWWKHKRWHODERXW

%86,1(6623325781,7,(6:(%/2*
'U-RKQ0XOODOO\SURPRWHVKLVGHQWDOSUDFWLFHLQ0XVNHJRQ0LFKLJDQ
ZLWKWKHVHLQQRYDWLYHIOLHUV (QWUHSUHQHXULDOLVP'ULYLQJ
,I\RX¶UHQRWLQKLVQHFNRIWKHZRRGVIHHOIUHHWRPLPLFKLVLGHD 'UXJ/HJDOL]DWLRQ
-8130
%86,1(6623325781,7,(6:(%/2*
,QGLDQ:HGGLQJV$UH%LJ%L]
-8130
$PHULFDQHQWUHSUHQHXU$GDP'XQQEXLOWDPLOOLRQ³SRWHPSLUH´LQ
$PVWHUGDPDQGKDVQRZUHWXUQHGWRWKH86WRGRWKHVDPHWKLQJKHUH
6PDOOEXVLQHVVHVKDYHEHFRPHWKHODWHVWHQJLQHVIRUPHGLFDO
PDULMXDQDDGYRFDF\LQWKH86DFFRUGLQJWR'LFN&RZDQWKH
IRUPHUGLUHFWRURIWKH1DWLRQDO2UJDQL]DWLRQIRUWKH5HIRUP
RI0DULMXDQD/DZV1250/
%RVWRQFRP ³7KHWKLQJWKDW¶VUHDOO\GULYLQJOHJDOL]DWLRQLV
HQWUHSUHQHXULDOLVP´KHVDLG$VWKH&)2RI&DQQDELV
³/LWHUDOO\WKLVPDUNHWLVMXVWH[SORGLQJ´VDLGSXEOLVKHU 6FLHQFHDSKDUPDFHXWLFDOVWDUWXSEDVHGLQ&RORUDGR6SULQJV
8SHQGUD0LVKUD KHKDVDYHVWHGLQWHUHVWLQVHHLQJWKHLQGXVWU\VXFFHHG
,QWKH,QGLDQFXOWXUHPDUU\LQJRIIDFKLOGLVDPDWWHURI ³,WKLQNLW¶VJUHDWWKDW$GDPLVEDFNKHUH´&RZDQDGGHG
SULGHDQGSDUHQWVVSDUHQRH[SHQVHWRWKURZDWUDGLWLRQDO ³+H¶VDYHU\VKUHZGVXFFHVVIXOEXVLQHVVPDQ´
ZHGGLQJVDLGZHGGLQJSODQQHUDQGGHFRUDWRU6KREKD
6KDVWU\7KHZHGGLQJVVKHVDLGW\SLFDOO\UDQJHIURP 3DUWRIHQWUHSUHQHXULDOVKUHZGQHVVLVNQRZLQJZKHQWRVHHN
WRDQGFDQJRDVKLJKDV RXWQHZRSSRUWXQLWLHV)RUWKHVDYY\ZHHGIDUPHUVRPH
SODFHVLQWKH86RIIHUSRVVLELOLWLHVWKDWDUHQ¶WDYDLODEOHLQ

$PVWHUGDP
6KDUH
%86,1(6623325781,7,(6:(%/2*
'$01,:,6+,¶'7+28*+72)7+$7 1RZ7+$7,V$1LFKH%L]
-8130
1DWLRQDO*HRJUDSKLF¶V%UHQGDQ
+DUWRQKRZWREHDZHVRPHRQ
7ZLWWHUDQG)DFHERRN²OLYH
SUHYLHZ
-8130
$FFRUGLQJWR&UDLQ¶V1HZ<RUN%XVLQHVVXQWLO3ODQHW3HSSHURSWLRQV
ZHUHYHU\OLPLWHGIRUGUDJTXHHQVZKRQHHGHGRXWILWVDQGGUHVVHV:HOO
MXVWWKLQNGUHVVHVWKDWDUHSURSRUWLRQHGFRUUHFWO\IRUDVL]HPDQ
7KH\ZHUHWDNLQJDVTXDUHSHJDQGWU\LQJWRSXWDURXQGGUHVV
RQLW´VDLG9LQFHQW&XFFLDZKRKDGDFDUHHULQIXQGUDLVLQJ
DQGJUDQWZULWLQJIRUGLIIHUHQWWKHDWHUVDQGXQLYHUVLWLHVLQWKH
1HZ<RUN&LW\DUHDEHIRUHLWRFFXUUHGWRKLPWKHUHPLJKWEHD
PDUNHWLQGUDJTXHHQFORWKHV6RIDU&XFFLDKDVWKHPDUNHW
DOOWRKLPVHOIZKLFKLVKRZKHSODQQHGLW
:H¶UHEULQJLQJWRJHWKHUDPD]LQJPDUNHWHUVIRU:RUGRI0RXWK &XFFLDZKRLVDOUHDG\EUHDNLQJHYHQZLWKLQ
6XSHUJHQLXV7KH³+RZWREH*UHDWDW:RUGRI0RXWK0DUNHWLQJ´ UHYHQXHVRIDUWKLV\HDUIRXQGDEXVLQHVVRUJDQL]DWLRQWKDW
&RQIHUHQFHLQ1HZ<RUNRQ-XO\7KHGD\ZLOOIHDWXUHKRZWR KHOSHGKLPDYRLGVWDUWXSFRVWV
WROHDUQSUDFWLFDOKDQGVRQWHFKQLTXHVWRJHWSHRSOHWDONLQJDERXW\RX ³:HWU\WREHWKHIXOOSDFNDJH²\RX¶UHJHWWLQJ\RXUZLJVDQG
WKHQH[WGD\ GUHVVHVIURPXVDQGZHXVHLQGHSHQGHQWFRQWUDFWRUVZKR
VXSSO\MHZHOU\DQGRWKHUPDWHULDOVDQGKHOSZLWKZLJ
2XUOLQHXSRIVSHDNHUVLQFOXGHVZRUGRIPRXWKVXSHUJHQLXVDQG1DWLRQDO GHVLJQV´VDLG&XFFLD³7KHRQO\WKLQJZHGRQ¶WGRLVVKRHV´
*HRJUDSKLF93RI0DUNHWLQJ%UHQGDQ+DUW%UHQGDQZLOOEHWDONLQJ
DERXWKRZWRHDUQIDQVDQGIROORZHUVRQ)DFHERRNDQG7ZLWWHUDQG &XFFLDZRUNVZLWK$OH[%DUWOHWWDYHWHUDQ%URDGZD\GHVLJQHU
RIIHUHGWKHVHLGHDVDVDSUHYLHZ LQERWKZDUGUREHDQGZLJVZKRLQYHVWHGVHYHUDOWKRXVDQG
GROODUVLQWKHHQWHUSULVH³:KHQ,PHW%DUWOHWW´VDLG&XFFLD
$QGFKHFNRXWRXU<RX7XEHSDJHWRVHHDOORIRXUVSHDNHULQWHUYLHZV ³HYHU\WKLQJFDPHWRJHWKHU²DQGKHHYHQFDPHZLWKDFOLHQW
OLVW,WKRXJKW,FDQVHOOWKLV´
7KHWZRFRPSOHPHQWHDFKRWKHUZHOOVDLG&XFFLDZKR

KDQGOHVWKHEXVLQHVVVLGHPDUNHWLQJVDOHVERRNNHHSLQJ %86,1(6623325781,7,(6:(%/2*
EUDQGLQJDQGSXEOLFLW\%DUWOHWWGHVLJQVDOOWKHFORWKLQJGRHV
DOWHUDWLRQVDQGVW\OHVWKHZLJV 'HIHQGLQJ$JDLQVW&DUERQ
+HVHHVWKHPDUNHWIRUSODQHWSHSSHUQ\FFRPDVQDWLRQZLGH 0RQR[LGH3RLVRQLQJ
³2XUPDUNHWLQJVWUDWHJ\LVDLPHGDWVHOOLQJFRVWXPHVDOO\HDU -8130
URXQG´KHVDLG³:HGRQ¶WKDYHVHDVRQDOLW\7KHUHDUHPDQ\
HYHQWVIHDWXULQJGUDJTXHHQVWKURXJKRXWWKH\HDUDURXQGWKH
FRXQWU\´
3KRWRE\&UDLQ
&%61HZV
%86,1(6623325781,7,(6:(%/2*
-XVWODVW\HDU&DLWOLQ%URQGRORDQG$PEHU:LOVRQGLHGZKHQ
:K\:H6KRXOG7UDLQ.LGV7R >$PEHU¶V@PRWKHU«OHIWDFDUUXQQLQJLQWKHJDUDJHERWKRI
WKHVHWUDJHGLHVZHUHDFFLGHQWDO2QHORFDOLQYHQWRUVD\VKH¶V
%H(QWUHSUHQHXUV FRPHXSZLWKDQHZGHYLFHWKDWFDQDFWXDOO\SUHYHQWVXFK
-8130 LQFLGHQWV
&DPHURQ+HUROGWKH%DFNSRFNHW&22H[SODLQVZK\ZHVKRXOG ,QYHQWRU0LFKDHO&ULVWRIRURVD\V³WKLVLVDSURWRW\SHRIWKH
HQFRXUDJHNLGVWREHHQWUHSUHQHXUV GHYLFH,W¶VFDOOHG&OHDUWKH$LUQRZ´
YLD+RO\.DZ 0LFKDHO&ULVWRIRURRI3DOP&LW\LVDSDUWWLPHLQYHQWRUDQGKH
KDVFRPHXSZLWKDGHYLFHWKDWKHVD\VLVUHDOO\VRPHWKLQJ³,
WKLQNLW¶VDOLIHVDYHU´
)URP%XVLQHVV2SSRUWXQLWLHV:HEORJ +LVLQYHQWLRQLVDVPDOOFDUERQPRQR[LGHGHWHFWRUDQGLWLV
GHVLJQHGWRPRQLWRUWKHOHYHORIFDUERQPRQR[LGHLQWKH
JDUDJH,IIRUH[DPSOHDFDULVOHIWUXQQLQJLQDJDUDJHWKH
GHYLFHZLOODXWRPDWLFDOO\RSHQWKHJDUDJHGRRUWRDOORZWKH
FDUERQPRQR[LGHWRHVFDSHEHIRUHWKHGHDGO\YDSRUVVWDUWWR
VHHSLQWRWKHKRXVH
+HVD\VLWFRXOG¶YHPDGHDZRUOGRIGLIIHUHQFH6DWXUGD\ZKHQ
DQ\HDUROG%RFDUDWRQPDQOHIWKLVFDUUXQQLQJLQWKH
JDUDJHDQGWKHPDQODWHUGLHGDQGKLVZLIHJRWVHULRXVO\LOO
³,WZRXOG¶YHVDYHGWKHLUOLIH,W¶VSRVLWLYHO\DOLIHVDYHU,WZLOO
RSHQXSWKDWJDUDJHGRRUDQGOHWWKHVPRNHRXW´
&ULVWRIRURJDYHXVDTXLFNLGHDRIKRZKLVLQYHQWLRQZRUNV
VD\LQJ³\RXOLQNLWWRWKHJDUDJHGRRUDQGDVVRRQDVLW
GHWHFWVHQRXJKOHYHORIDFFHOHUDWHGOHYHOVRIFDUERQ
PRQR[LGH,WZLOORSHQXSWKHJDUDJHGRRUDQGWKHQLW¶OOKDYH
DVHULHVRIWZRVHULHVRIEHHSVWKHILUVWVHULHV\RX¶OOKHDU
QRZDQGWKHQWKHVHFRQGVHULHVZKLFKLVJRQQDVWDUWDQ\
VHFRQGQRZWKDWORFNVLWRXWLWZLOOQRWFORVHDJDLQXQOHVVWKH

XQLWLVUHVHW´
3KRWRE\KR\DVPHJ )URP%XVLQHVV2SSRUWXQLWLHV:HEORJ
%86,1(6623325781,7,(6:(%/2*
7RXULVP2Q7KH)DUP
-8130
%86,1(6623325781,7,(6:(%/2*
6DOHVPDQ)LQGV1LFKH:LWK
:L]DUG:DOO
-8130
$JULSUHQHXU5REHUWR3XHQWHVSLQDUHFHQWO\WROGWKH%XVLQHVV0LUURU
WKDWKHLVKRSLQJWRVSDUN³DJULFXOWXUHWRXULVP´DVDZD\RIOLIH
3XHQWHVSLQDVDLGWKHOLYHVWRFNLQGXVWU\RIORFDOIDUPHUVLQ
&DOLQDQGLVWULFWLQWKLVFLW\FDQEHDQDWWUDFWLRQIRURWKHU
IDUPHUVFRPLQJIURPWKHQHDUE\SURYLQFHVRI%XNLGQRQ
'DYDRGHO1RUWH1RUWK&RWDEDWRDQGRWKHUSURYLQFHVVLQFH
DJULFXOWXUHLVWKHEDFNERQHRIWKHLUORFDOHFRQRP\
$VLGHIURPKDYLQJDQHFRQRPLFRSSRUWXQLW\WKHIDUPHUV
FRXOGDOVRVKDUHWKHYDOXHVRIKDYLQJDIDUPLQWKHUXUDODUHDV
IRUWKRVHZRUNLQJLQWKHRIILFHVRQZHHNGD\V
³$VDIDUPHUZHZRXOGOLNHWRVKDUHWRRWKHUSHRSOHWKH
$FFRUGLQJWR7KH:DVKLQJWRQ3RVW0LNH)RJDUW\KDVEHHQZRUNLQJLQ EHQHILWVRIKDYLQJHYHQDVPDOOIDUPDVDOLIHVW\OHZHHNHQG
WKHSULQWLQJLQGXVWU\IRUWKHODVW\HDUVRUVRPDLQO\VHOOLQJSDSHU DFWLYLW\$IWHUDVWUHVVIXOZHHNGD\WKH\VKRXOGFRPHWRWKHLU
+H¶VDQDIIDEOHJX\DQGDERUQVDOHVPDQ IDUPRQZHHNHQGVWRUHOD[DQGDWWKHVDPHWLPHHQMR\WKH
EHQHILWVRIKDYLQJDIHZIDUPDQLPDOV´KHVDLGLQDQ
7KHVNLOOVKHKDVSLFNHGXSDORQJWKHZD\LQFOXGHNQRZLQJDJRRGWKLQJ LQWHUYLHZ
ZKHQKHVHHVLW
%XW3XHQWHVSLQDDFNQRZOHGJHGWKDWPDQ\RIWKRVHZKRDUHLQ
6RZKHQ)RJDUW\KDSSHQHGXSRQDVSHFLDOILOPPDGHE\&OLQJ=DILUP ZKLWHFROODUMREVODFNWKHEDVLFVRIVWDUWLQJXSDVPDOOIDUPRU
EDVHGLQ1HZ0H[LFRKHLPPHGLDWHO\VDZWKHSRWHQWLDO HYHQUDLVLQJJRDWVDQGFKLFNHQLQWKHLURZQEDFN\DUGV
)RJDUW\UHDOL]HGWKHSURGXFWFRXOGEHWRWHGDURXQGOLNHDODUJHUROORI 7KXVRQ$XJXVWWRLW¶VDQ³RSHQKRXVH³LQ0DODJRV
ZD[SDSHU7HDURIIDSLHFHVODSLWRQDZDOODQGVWDUWZULWLQJ²LQVWDQW *DUGHQ5HVRUWZKHUHYLVLWRUVRQWKHILUVWGD\RIWKHHYHQWFDQ
ZKLWHERDUG+HGXEEHGKLVGLVFRYHU\:L]DUG:DOO DWWHQGVHPLQDUVRQWKH3KLOLSSLQHFKHHVHLQGXVWU\UHQHZDEOH
HQHUJ\DSSOLFDWLRQLQWKHIDUPFUHDWLQJPLFURKDELWDWVDQG
7KHSDWHQWHGSULQWDEOHDQGUHF\FODEOHPDWHULDOFDQFOLQJWRDZDOOIRUXS IRRGWDVWLQJ
WRVL[PRQWKV,WFDQEHZULWWHQRQZLWKGU\HUDVHPDUNHUVRUZDVKDEOH
FUD\RQV,WPHHWVVWDQGDUGVSXWIRUWKE\WKH&RQVXPHU3URGXFW6DIHW\ 2QWKHVHFRQGGD\WKHUHZLOOEHVHPLQDUVRQUDLVLQJRUJDQLF
&RPPLVVLRQDVZHOODVWRXJKHU(XURSHDQVWDQGDUGV FKLFNHQVDQGSLJVIUHVKZDWHUILVKIDUPLQJFDFDRIDUPLQJ
DQGFUDIWPDNLQJVHVVLRQV
3KRWRE\:DVKLQJWRQ3RVW

3KRWRE\FKULVIULHVH %86,1(6623325781,7,(6:(%/2*
,QYHQWLRQV)ORZ7R%3$QG
)URP%XVLQHVV2SSRUWXQLWLHV:HEORJ 6WRS7KHUH
-81$0
%86,1(6623325781,7,(6:(%/2*
6Z\SH0DNHV7\SLQJ(DVLHU2Q
7RXFK6FUHHQV
-8130
$FFRUGLQJWR7KH1HZ<RUN7LPHVWKHUHLVDQHZFKDOOHQJHWRW\SLQJRQ
SKRQHV0RUHSKRQHVDUHXVLQJYLUWXDONH\ERDUGVRQDWRXFKVFUHHQ
UHSODFLQJSK\VLFDOEXWWRQV%XWSHFNLQJRXWDPHVVDJHRQDVPDOOSLHFHRI
JODVVLVQRWVRHDV\DQGW\SRVDUHFRPPRQ
&OLII.XVKOHUWKLQNVKHKDVDVROXWLRQ+LVQHZWHFKQRORJ\ZKLFKKH
GHYHORSHGZLWKDIHOORZUHVHDUFKVFLHQWLVW5DQG\0DUVGHQLVFDOOHG 7KHZRUVWRLOVSLOOLQ86KLVWRU\KDVLQVSLUHGDGHOXJHRILGHDVWR
6Z\SHDQGLWDOORZVXVHUVWRJOLGHDILQJHUDFURVVWKHYLUWXDONH\ERDUGWR FRQWDLQWKHRR]HFDSWKHJH\VHURUNHHSWKHVOXGJHIURPVWDLQLQJPRUH
VSHOOZRUGVUDWKHUWKDQWDSSLQJRXWHDFKOHWWHU VKRUHOLQHVUHSRUWV7DPSD%D\2QOLQH
6Z\SH¶VVRIWZDUHGHWHFWVZKHUHDILQJHUSDXVHVDQGFKDQJHVGLUHFWLRQDV 5XGLPHQWDU\EOXHSULQWVKDYHEHHQVNHWFKHGRQVFUDSSDSHU
LWWUDFHVRXWWKHSDWWHUQRIDZRUG7KHPRYHPHQWVGRQRWKDYHWREH &RQWUDSWLRQVFREEOHGWRJHWKHULQKRPHJDUDJHV&RPSXWHU
SUHFLVHEHFDXVHWKHVRIWZDUHFDOFXODWHVZKLFKZRUGVDXVHULVPRVWOLNHO\ DQLPDWHGFOLSVSRVWHGRQWKH,QWHUQHW
WU\LQJWRVSHOO
3ODQVKDYHFDOOHGIRUXQOHDVKLQJRLOHDWLQJEDFWHULDLQWKH
&DSLWDOL]DWLRQDQGGRXEOHOHWWHUVFDQEHLQGLFDWHGZLWKDSDXVHRU *XOIRI0H[LFRRUVSULQNOLQJRLOVRSSLQJSODQWFOLSSLQJVRQ
VTXLJJOHZKLOHVSDFLQJDQGSXQFWXDWLRQDUHDXWRPDWLF.XVKOHUZKRLV WKHEOREV$OVRSLWFKHGLQDYLGHRSRVWHGRQ<RX7XEHZDVDQ
FKLHIWHFKQRORJ\RIILFHURI6Z\SHHVWLPDWHVWKDWWKHVRIWZDUHFDQ RLOVWDQFKLQJIDEULFUHVHPEOLQJDJLJDQWLFEDQGDJHODLGRYHU
LPSURYHHYHQWKHQLPEOHVWWH[WPHVVDJHU¶VSDFHE\WRSHUFHQW WKHVXUJLQJOHDN
YLD3DW¶V3DSHUV %XWVRPHSHRSOHZKRKDYHVXEPLWWHGWKHLULGHDVWR%3VD\
WKH\GRQ¶WJHWIHHGEDFNIURPWKHSHWUROHXPJLDQWDQGZRQGHU
ZKHWKHUEXUHDXFUDWLFUHGWDSHLVVWLIOLQJWKHLUHXUHND
PRPHQWV
³,WKLQNLW¶VERJXV´:DUUHQ7LWXVRI7DPSDVDLGDERXW%3¶V
VXEPLVVLRQVSROLF\ODXQFKHGYLDDWROOIUHHSKRQHOLQHDQG
WKHFRPSDQ\¶VZHEVLWHVRRQDIWHUWKH'HHSZDWHU+RUL]RQRLO
ULJH[SORGHG$SULONLOOLQJZRUNHUV
0RVWIHHOWKDWWKHLUVXJJHVWLRQVDUHLJQRUHGDQGWKH
FRPSDQ\¶VFDOOIRUVXEPLVVLRQVLVQRWKLQJPRUHWKDQDSXEOLF
UHODWLRQVVWXQW
3KRWRE\LEWLPHV


-XQH
7RGD\·V7DEEORLG
'$01,:,6+,¶'7+28*+72)7+$7 LQFOXGLQJWKHSDUNLQJORW
1HZVOHWWHU7KH /HDUQPRUH7UHH+XJJHU
³5HSDFNDJH,W´,VVXH !<RXUDOEXPV
-81$0
/RWVRIDUWLVWVPXVLFLDQVDQGEXVLQHVVHVDOLNHIRFXVRQVHOOLQJRQHRII
:HOFRPHEDFNWRWKH'DPQ,:LVK,7KRXJKWRI7KDWQHZVOHWWHU7KLV FUHDWLRQV%XWIRUELJIDQVWKDWPD\QRWEHHQRXJK)XQN\URFNHUV,
LVWH[WRIWKHJUHDWLVVXHDOORIRXUHPDLOVXEVFULEHUVMXVWUHFHLYHG6LJQ )LJKW'UDJRQVUHSDFNDJHGWKHLURIIHULQJVDQGFUHDWHG/LIHWLPH
\RXUVHOIXSXVLQJWKHKDQG\IRUPRQWKHULJKW@ 0HPEHUVKLS86%GULYHVIRU7KHSDFNDJHLQFOXGHGOLIHWLPH
DGPLVVLRQWRDQ\,)'VKRZIUHHGLJLWDOFRQWHQWIRUOLIHDQGVRPHRWKHU
6PDUWUHVRXUFHIXOPDUNHWHUVNQRZWKH\¶YHDOUHDG\JRWHYHU\WKLQJWKH\ VSHFLDOERQXVHV7KH\TXLFNO\VROGRXWJLYLQJWKHEDQGDKDQG\
QHHG%XWVRPHWLPHVLWPD\MXVWQHHGDOLWWOHUHSDFNDJLQJUHDUUDQJLQJ DQGDQRSSRUWXQLW\WRGRVRPHWKLQJVSHFLDOIRUWKHLUELJJHVWWDONHUV
DQGXSGDWLQJ$IHZVPDUWH[DPSOHVKHUH
7KHOHVVRQ6RPHWLPHVWKHZKROHLVELJJHUWKDQWKHVXPRIWKHSDUWV
!<RXUUHVWDXUDQW :KDWFDQ\RXUHDUUDQJHUHPL[DQGUHSDFNDJHWRFUHDWHVRPHWKLQJ
!<RXUSDUNLQJORW ELJJHUWKDQ\RXULQGLYLGXDORIIHULQJV"
!<RXUDOEXPV
!&KHFNLWRXW/HDUQVRPHWKLQJHYHU\GD\ /HDUQPRUH0XVLF7KLQN7DQN
!<RXUUHVWDXUDQW !&KHFNLWRXW/HDUQVRPHWKLQJHYHU\GD\
:LWKDOLWWOHUHSDFNDJLQJRIZKDWWKH\KDYHWRRIIHUUHVWDXUDQWVDQGEDUV 'LG\RXNQRZEHHVFDQGHWHFWH[SORVLYHV"7KDWRQO\RIXVJHWWKH
FDQSLWFKPRUHWKDQDPHQX/RWVRISHRSOHOLNHGJRLQJWR-HUU\5HP\¶V UHFRPPHQGHGKRXUVRIVOHHSHDFKQLJKW"7KDWVFLHQWLVWVKDYHIRXQG
6SRUWV%DUDQG*ULOOLQ%RVWRQWRZDWFK5HGVR[JDPHVVRWKH\VDZDQ DOFRKROLQVSDFH":HOO\RXGRQRZ
RSSRUWXQLW\WRUHSDFNDJHWKHH[SHULHQFH)RUIDQVFDQEX\³VHDVRQ
SDVVHV´WRWKHEDUWRZDWFK5HGVR[JDPHVRQ797KHSDFNDJHLQFOXGHV &KHFNLWRXW/HDUQ6RPHWKLQJ(YHU\'D\
DUHVHUYHGWDEOHIRUHDFKJDPHQRZDLWLQJLQOLQHVDQGDIRRGFUHGLW
DQGDIUHHEHHUSHUYLVLW1RZLQWKHILUVW\HDURIWKHSDVVWKH\¶YHDOUHDG\
VROGRXWDQGDUHWDNLQJQDPHVIRUWKHLUZDLWOLVW 6KDUH
7KHOHVVRQ/RRNEH\RQG\RXUPHQXRUSURGXFWOLQHH[LVWLQJVHUYLFHV
HWFWRILQGRSSRUWXQLWLHVWRRIIHUVRPHWKLQJPRUHWROR\DOFXVWRPHUV
/HDUQPRUH-HUU\5HP\VFRP
!<RXUSDUNLQJORW
7XUQVRXWWKHUH¶VPRUHRSSRUWXQLW\LQ\RXUSDUNLQJORWWKDQWKHXVXDO
RIILFHSROLWLFVRIUHVHUYHGVSDFHV6DP¶V&OXEUHSDFNDJHGDQGUHWURILWWHG
WKHLUH[LVWLQJOLJKWSROHVZLWKVPDOOZLQGWXUELQHV7KRXJKHDUO\LQWKH
H[SHULPHQWWKH\¶UHDOUHDG\SURGXFLQJPRUHWKDQHQRXJKHQHUJ\WR
DQQXDOO\SRZHUVL[DYHUDJH$PHULFDQKRPHV$QGHYHU\JUHHQ
RUJDQL]DWLRQEORJJHUDQGMRXUQDOLVWLVWKULOOHGWRWDONDERXWLWDQG
ULJKWIXOO\VR
7KHOHVVRQ7KHUH¶VPRUHWRPDUNHWLQJWKDQ\RXUZHEVLWHDQGVDOHV
EURFKXUHV,W¶VHYHU\ZKHUH\RX¶YHJRWDFKDQFHWRJHWSHRSOHWDONLQJ

%86,1(6623325781,7,(6:(%/2* :LVFRQVLQ3DVVLRQ3DUWLHV
1HZ%L]RS&ODVVLILHG$GV7KLV 3DVVLRQ3DUWLHV%HOOHURVH1\1\1M:L&D)O
:HHN :LOO7KLV:RUN)RU<RX"
-81$0
:DQW7R*HQHUDWH:HDOWK)URP7KH:HOOQHVV+HDOWKFDUH
5HYROXWLRQ""
$IIRUGDEOH6RFLDO0HGLD3DFNDJH)RU<RXU%XVLQHVV
1HHG$)LQDQFLDO/LIHOLQH"5HFHLYH&DVK'DLO\6LPSO\
5HWXUQLQJ3KRQH&DOOV
%H(DUQLQJ0RQH\)URP$Q\ZKHUH,Q7KH:RUOG
+RZ7R6WDUW$'U\&OHDQLQJ'HOLYHU\%XVLQHVV
+RZ7R6WDUW$&DWHULQJ%XVLQHVV
+RZ7R6WDUW$'U\&OHDQLQJ'HOLYHU\%XVLQHVV
0DNH0RQH\6HOOLQJ8VHG&DUV)URP+RPH
/RRNLQJ)RU6HULRXV%XVLQHVV3DUWQHUV
+HDOWKLHVW&RIIHH(YHU$QG1RWKLQJ,V$GGHG
%86,1(6623325781,7,(6:(%/2*
3URSHUW\3UHVHUYDWLRQ'LUHFWRU\'LUHFWRU\2I3URSHUW\
3UHVHUYDWLRQ9HQGRUV&RQWUDFWRUV
0RR\DK5HGHILQHV7KH
<RX&DQ/DXJK$W0RQH\:RUULHVLI<RX)ROORZ7KLV6LPSOH3ODQ
+DPEXUJHU%XVLQHVV
-81$0
5REHUW$OOHQ?¶V,QVWDQW:HDOWK%XLOGLQJ3URJUDP
6PF0DNLQJ0RQH\)URP+RPH
6L[)LJXUHV,Q'D\V:LWK$QG+RXU7ULFN !GHWDLOV
+HUH
)UHH'LVFRXQW3UHVFULSWLRQ,PDJLQJ$QG/DE6HUYLFHV
3UHVFULSWLRQ6DYLQJV$JHQW
5HVLGXDO,QFRPH+RPH%XVLQHVV2SSRUWXQLW\
+DYH\RXHYHUKDGDEXUJHUVRGHOLFLRXVWKDWLW¶VDOPRVWWRRJRRGWREH
1HHG0OP/HDGV"%XLOGLQJ$%XVLQHVV"+RW/HDGV WUXH",IQRWWKHQPD\EH\RXQHHGWRWU\D0RR\DKEXUJHU
6XPPHU3DVVLRQ3DUWLHV:LVFRQVLQ)ORULGD1RUWK&DUROLQD1HZ 0RR\DKLVQ¶WMXVWDQRWKHUIDVWIRRGMRLQW7KH\DUHDUHVWDXUDQWWKDW
<RUN&DOLIRUQLD VSHFLDOL]HVLQWKHKDPEXUJHU,WLVWKHLUJRDOWRFUHDWHWKHXOWLPDWHEHVW
WDVWLQJEXUJHUSRVVLEOH)RUHQWUHSUHQHXUVZLWKDWDVWHIRUEXUJHUVDQG
&DOLIRUQLD3DVVLRQ3DUWLHV+RVW$3DVVLRQ3DUW\%HFRPH$ EXVLQHVVWKH\DOVRRIIHUDIUDQFKLVHRSSRUWXQLW\
&RQVXOWDQW
7HOOXVDOLWWOHPRUHDERXW0RR\DK

022<$+ZDVIRXQGHGLQE\5LFK+LFNVDQG7RGG RSSRUWXQLW\
,VWUH:HDUHEHWWHUEXUJHUIDVWFDVXDOFRQFHSWGHYRWHGWR
GHOLYHULQJWKHEHVWEXUJHUDQGIU\H[SHULHQFHWRRXUYDOXHG 7KHGHVLUHWREHSDUWRIDQH[FLWLQJIUDQFKLVH
JXHVWV RSSRUWXQLW\ZLWKDQHPHUJLQJIDVWFDVXDOUHVWDXUDQW
FRQFHSW
+RZGLGWKHEXVLQHVVFRPHWREH"
3UHIHUPXOWLXQLWUHVWDXUDQWRSHUDWLRQVDQGRU
7RGGDQG5LFKKDGWKHLGHDIRUWKHXOWLPDWHEXUJHUDQGIU\ GHYHORSPHQWH[SHULHQFH
H[SHULHQFH7KH\WRRNWZRIRRGVWKDWHYHU\RQHORYHV
SHUIHFWHGWKHUHFLSHVDQGVWDUWHGWKHEXVLQHVV7KHILUVW 7KHDELOLW\WRGHOLYHUDVXSHUODWLYHFXVWRPHUH[SHULHQFH
ORFDWLRQRSHQHGLQ3ODQR7;DQGRYHUWKHSDVW\HDUVKDV ZKLOHPDLQWDLQLQJDGHGLFDWLRQWRGHYHORSVWURQJWLHVWR
H[SDQGHGDFURVV7H[DVZLWKPXOWLSOHORFDWLRQVLQWKH WKHFRPPXQLW\
'DOODV)RUW:RUWK0HWURSOH[WKHJUHDWHU+RXVWRQDUHDDQG
ZLOOVRRQH[SDQGERWKZLWKLQ RXWVLGHRIWKHVHPDUNHWV $SDVVLRQIRUDQGGHGLFDWLRQWRRSHUDWLRQVH[FHOOHQFH
:KHQGLG\RXVWDUWIUDQFKLVLQJ" 7KHDELOLW\WRFUHDWHDQGPDQDJHDQRUJDQL]DWLRQWKDW
HIIHFWLYHO\UHFUXLWVWUDLQVUHWDLQVDQGPRWLYDWHV
:HVWDUWHGIUDQFKLVLQJLQ SHRSOH
,QZKDWZD\VKDVWKHEXVLQHVVHYROYHGVLQFHLWZDVILUVW &OHDUXQGHUVWDQGLQJRIWKHPDUNHWVWKDW\RXZRXOGEH
FRQFHLYHG" GHYHORSLQJ
,QODWHZHEHJDQDUHYLWDOL]DWLRQRIRXUEUDQGZKLFK $GHTXDWHFDSLWDOL]DWLRQWRPHHW\RXUGHYHORSPHQW
ZDVODUJHO\LQVSLUHGE\WKHDGGLWLRQRI$ODQ+L[RQRXU FRPPLWPHQWRIRQHRUPRUH022<$+%XUJHUV )ULHV
FRPSDQ\SUHVLGHQW$ORQJZLWKPDQ\RWKHUHOHPHQWVWKH UHVWDXUDQW
QHZGLUHFWLRQEURXJKWDPRUHDWWUDFWLYHDWPRVSKHUHD
YLEUDQWFRORUVFKHPHDQGDVWURQJHUHPSKDVLVRQWKHJXHVW 022<$+UHTXLUHV\RXWRKDYHDPLQLPXPQHWZRUWKRI
H[SHULHQFH6LQFHWKHQZHKDYHFRQWLQXHGWRSXUVXH DSSUR[LPDWHO\
RSSRUWXQLWLHVLQDZLGHUDQJHRIDUHDVWKDWKHOSXVDFKLHYH
RXUJRDOV)RUH[DPSOHZHKDYHDOZD\VSUHSDUHGRXUIRRG $QGPLQLPXPOLTXLGFDVKRIDSSUR[LPDWHO\
ZLWKWKHIUHVKHVWLQJUHGLHQWVLQFOXGLQJEXQVWKDWDUHEDNHG
RIIVLWHDQGGHOLYHUHGIUHVKGDLO\WRRXUUHVWDXUDQWV:HKDYH $Q\DGYLFH\RX¶GOLNHWRRIIHUSRWHQWLDOIUDQFKLVHHV"
WDNHQWKLVRQHVWHSIXUWKHUDQGQRZKDYHEHJXQEDNLQJRXU
RZQVHVDPHVHHGEXQVIUHVKLQVHOHFWVWRUHVWRPDNHWKH /RYHIRRGORYHSHRSOH,WPD\VRXQGVLPSOHEXWWKHVH
H[SHULHQFHWKDWPXFKPRUHHQMR\DEOH:HZDQWWREHWKH TXDOLWLHVFDQEHHDVLO\RYHUORRNHGLQWKLVLQGXVWU\2XUEHVW
OHDGHUVLQRXUILHOGDQGWDNHWKHHGXFDWHGULVNVWKDWZLOO RSHUDWLRQVDUHWKHVWRUHVZLWKIUDQFKLVHHVWKDWFDUHGHHSO\
PDNHXVVWDQGRXWDERYHDOOHOVH DERXWWKHTXDOLW\RIWKHSURGXFWWKH\¶UHVHUYLQJDQGFDUH
GHHSO\DERXWWKHFRPPXQLWLHVLQZKLFKWKH\VHUYH7KHPRUH
:KDWJRDOVGR\RXKRSHWRDFFRPSOLVKZLWKWKHEXVLQHVVRYHU \RXJLYHEDFNWRWKHFRPPXQLW\WKHPRUHWKH\ZLOOJLYHEDFN
WKHQH[W\HDURUVR" WR\RX
&RQWLQXHWRJLYHWKHXOWLPDWHEXUJHUDQGIU\H[SHULHQFHWR
RXU*XHVWVDQGEHDQLQGXVWU\OHDGLQJIUDQFKLVRU
7HOOXVDERXW\RXUIUDQFKLVHRSSRUWXQLW\DQGZKDW\RXRIIHU
$W0RR\DKZHEHOLHYHWKDWWKHIXWXUHJURZWKDQGVXFFHVVRI
RXUEUDQGZLOOEHDGLUHFWUHVXOWRIWKHVWUHQJWKRIRXURZQHU
RSHUDWRUVDQGDUHDGHYHORSHUV2XUVHOHFWLRQSURFHVVVWDUWV
ZLWKVHOHFWLQJRQO\WKHEHVWFDQGLGDWHVZKRVKDUHRXUFRUH
YDOXHVDQGHQWKXVLDVPWRVHUYLQJWKHEHVWEXUJHUV IULHVRQ
WKHSODQHW
022<$+%XUJHUV )ULHVFDQGLGDWHVPXVWPHHWWKH
IROORZLQJTXDOLILFDWLRQVWREHFRQVLGHUHGIRUDIUDQFKLVH

'RQRW«LQVWHDG«
$V\RXFDQVHHLQWKHSLFWXUH,¶YHOHIWWKH³'R1RW´VHFWLRQEODQN7KDW¶V
817(03/$7(5 EHFDXVHWKHUHDUHDQLQILQLWHQXPEHURISRVVLELOLWLHVRIZKDWFRXOGJR
KHUH7DNHIRUH[DPSOH³1HZ&DPFRUGHU´,FRXOGVD\³6WRSHDWLQJ
7KH127WRGR/LVW IULHGIRRG´:KLOHWKDWLVDOOZHOODQGJRRGLWUHDOO\LVQ¶WUHODWHGWRWKH
-81$0 JRDO%HFDXVHEX\LQJDQHZFDPFRUGHULVSXUHO\DILQDQFLDOJRDOPD\EH
VRPHWKLQJPRUHDORQJWKHOLQHVRI³'RQRWHDWRXW±LQVWHDGVDYHWKDW
ZRXOGEHXVHGIRUHDWLQJRXWDQGSODFHLQWRDVHSDUDWH,1*'LUHFW
DFFRXQW´'LG\RXVHHKRZWKDWZDVZRUGHG"7KHUHZDVWKH³'R
QRW´DFWLRQVWHSDQGWKHQDQ³LQVWHDG´VWHSDOVR
/HW¶VWU\LWRXWRQ'2±³%HDEOHWRKDYHDPLQXWHFRQYHUVDWLRQ
ZLWK6SDQLVKIULHQG´/HDUQLQJDODQJXDJHLVQRWDVPXFKRIDILQDQFLDO
VHQVLWLYHLVVXHDVLWLVDWLPHVHQVLWLYHLVVXH$JRRG'R1RWIRUWKLV
ZRXOGEH³'RQRWZDWFKP\IDYRULWHPRYLHVLQ(QJOLVKDQ\PRUHLQVWHDG
ZDWFKWKHPLQ6SDQLVKZLWK(QJOLVKVXEWLWOHV
*HWWKHLGHD"<RXQRWWRGROLVWJXLGHV\RXDQGJLYHV\RXERXQGDULHVWKDW
OHDG\RXWR\RXUJRDO,W¶VNLQGRIOLNHZKHQZHZHUHOLWWOHDQGZRXOGJR
EXPSHUERZOLQJ$OOWKHLWHPVRQ\RXUQRWWRGROLVWDUHWKH³EXPSHUV´
ERXQFLQJ\RXEDFNDQGIRUWKLQWRWKHODQHDV\RXKHDGWRZDUGV\RXUWR
GROLVWWKH³SLQV´
+RQH\GRQ¶W 1RWMXVWIRUELJJRDOVEXWIRUGD\WRGD\DOVR
6HWWLQJJRDOVDQGGHILQLQJZKDW\RXZDQWWRGRZKR\RXZDQWWREHRU <RX¶UHDFROOHJHVWXGHQWDQHQWUHSUHQHXUDQHPSOR\HHDSDUHQWRU
ZKHUH\RXZDQWWRJRLV$%62/87(/<HVVHQWLDOWROLYHWKH8QWHPSODWH DQ\WKLQJHOVHWKDWUHTXLUHVIRFXV<RXKDYHWKLQJVWRGR,KDYHWKLQJVWR
OLIH(TXDOO\DVLPSRUWDQWLVZKDW\RX'21¶7ZDQWWRGRZKR\RX GR6RPHWLPHVWKHGD\WRGD\LQWHUUXSWLRQVDQGGLVWUDFWLRQVFDQJHWXV
'21¶7ZDQWWREHRUZKHUH\RX'21¶7ZDQWWRJR RIIFRXUVH7KLVLVZKHUHKDYLQJRXU17'UHDOO\KHOSV-XVWIRUWRGD\RU
WRPRUURZRUWKHQH[WGD\RUZKHQHYHUKHUHDUHVRPHFRPPRQLWHPV
:HOFRPHWRWKH1RW7R'R/LVW17' WKDWFDQEHDGGHGWRWKH17'WRKHOSNHHS\RXRQWUDFN)LOOLQ\RXU
DSSURSULDWH³'RQRW«LQVWHDG´SDUWVDV\RXVHHILW
:H¶YHDOOUHDGWKH)RXU+RXU:RUNZHHN,I\RXKDYHQ¶WJHWLW,I\RX
KDYHQ¶WILOOHGRXW\RXURZQ³GUHDPOLQH´VKHHWFOLFNKHUHWRGRZQORDGLW &RPPRQWDVNVWKDWVKRXOGEHRQWKH17'
GLJLWDOYHUVLRQRUKHUHSULQWDEOHYHUVLRQ2QFH\RXKDYH\RXU³WRGR´
OLVWRIZKDW\RXZDQWWREHZKHUHWRJRZKDWWRRZQJHWRXWDEODQN &RQVWDQW)DFHERRNFKHFNLQJ
VKHHWDQGZULWHGRZQZKDW\RX'21¶7ZDQW+HUH¶VDEULHIH[DPSOHIURP
P\RZQOLIH 7ZHHWLQJWKDW¶VXQUHODWHGWR\RXUJRDO«,UHDOL]HWKDWVRPHQHHG
7ZLWWHUWRDFWXDOO\JHWZRUNGRQHDQGWKH\FDQWHOOWKHGLIIHUHQFHRI
ZKHQWRKDYHLWRQYVZKHQWRKDYHLWRII
$QVZHULQJSKRQHFDOOVHPDLOVWH[WVRUHYHQNQRFNVDWWKHGRRU
5HDGLQJWKHQHZV
:DWFKLQJVRPHWKLQJWKDWLVQ¶WUHODWHGWRWKHJRDOQHZVWYVSRUWV
PRYLHVHWF
<RXJHWWKHLGHD)RUWKHGD\WRGD\VWXIIJHWWKHMREGRQHKLWWKH
EXPSHUVWKHQQDLOWKHVWULNHDQGWKHQ\RXFDQUHZDUG\RXUVHOI
/DVWO\RQHPRUHWRGRDQGRQHPRUH17'
7R'R.HHSFUXVKLQJLWE\OLYLQJOLIHRQ\RXURZQWHUPVJRLQJDJDLQVW

WKHJUDLQDQGEOHVVLQJRWKHUV 7KH&RPSOHWH,GLRW¶V*XLGHWR&DVKLQJ,Q2Q<RXU,QYHQWLRQV
17''RQ¶WOLVWHQWRWKHVWDWXVTXRIROORZDGYLFHIURP³PRVWSHRSOH´ $GDPV¶/DVW6WDQG$4XHVWWR&RPPHUFLDOL]HD:RUNEHQFK
DQGEHFRPHDFRJLQWKHZKHHO«,QVWHDGJHWLQYROYHGE\OHDYLQJD
FRPPHQWEHORZDQGVLJQXSIRUWKH([FOXVLYH&RQWHQWYLDHPDLO±\RX 0RUH$ERXWWKH%XVLQHVVLQ0\7UDVK
FDQGRWKLVLQWKHXSSHUULJKWKDQGFRUQHURIWKLVSDJH
:LOO<RXU,GHD)O\"
6HH\D¶OOVRRQ
)URP]HURWREXVLQHVVLQGD\V
-&
,SRVWHGPRVWRIWKHVHOLQNVWRP\7ZLWWHUDFFRXQW,I\RX¶UHQRWIROORZLQJ
3KRWR&UHGLW PH\RXPLJKWPLVVRQH
6(7+¶6%/2* %86,1(6623325781,7,(6:(%/2*
<RX¶UHDOUHDG\VHOIHPSOR\HG $WWUDFWLQJ&XVWRPHUVZLWK
-81$0
<RX7XEH
:KHQDUH\RXJRLQJWRVWDUWDFWLQJOLNHLW" -8130
7KHLGHDWKDW\RXDUHDIDFHOHVVFRJLQDEHQHYROHQWV\VWHPWKDWFDUHV *RRJOHVHOOVDORWRIDGYHUWLVHPHQWVRQWKHLUVLWH<RX7XEH0DQ\
DERXW\RXDQGFDQ¶WWHOOSDUWLFXODUO\ZKHWKHU\RXDUHZRUWKDGD\¶VSD\RU EXVLQHVVHVXVHWKHVLWHWRSURPRWHWKHLUSURGXFWVDQGVHUYLFHV
QRWLVOLNHLWRUQRWRYHU 6RPHWLPHVWKRXJKWKHEHVWZD\IRUDVPDOOEXVLQHVVOLNH\RXUVWRXVH
WKHVLWHWRDWWUDFWQHZFOLHQWVDQGFXVWRPHUVLVWRMXVWFUHDWHJUHDWYLGHRV
,QWKHORQJUXQZH¶UHDOOGHDG,QWKHPHGLXPORQJUXQWKRXJKZH¶UHDOO
VHOIHPSOR\HG,QWKHPHGLXPORQJUXQWKHGHFLVLRQVDQGDFWLRQVZH 7KH*RRJOH%ORJUHFHQWO\LQYLWHG7HUUHQFH.HOOHPDQIRXQGHURI
WDNHHDFKGD\GHWHUPLQHZKDWZH¶OOEHGRLQJQH[W '\QRPLJKW\'HVLJQWRWDONDERXWKRZKHJUHZKLVEXVLQHVVZLWK
<RX7XEH
$QG\HWLW¶VVRHDV\WRUHYHUWWR³,MXVWZRUNKHUH´
,Q,ZDVZRUNLQJP\GD\MREDVDGLJLWDOSKRWRJUDSKHU
IRUHFRPPHUFHDW7KH0XVHXPRI0RGHUQ$UW0R0$
ZKHQ,IRXQGVHYHUDOSURWRW\SHVIRUDSURGXFWWKDWZHUHEHLQJ
%86,1(6623325781,7,(6:(%/2* WKURZQRXW7KHSODVWLFHOHPHQWVKDGPDJQHWVLQVLGHWKHP
DQGDV,EURNHWKHPRSHQDQGSXWWKHPDJQHWVRQP\GHVN
4XLFN/LQNV WKH\VXGGHQO\VKRWWRJHWKHUWRIRUPDVWUDLJKWOLQH3OD\LQJ
-8130 ZLWKWKHPDJQHWV,UHDOL]HG,FRXOGPDNHMHZHOU\WKDWZDV
KHOGWRJHWKHUE\PDJQHWLFIRUFHDORQH7KLVFKDQFHGLVFRYHU\
+HUHDUHDIHZOLQNVWKDWGLGQ¶WZDUUDQWWKHLURZQSRVWVEXW,ZDQWHGWR ZDVWKHILUVWVWHSRQWKHURDGWRVWDUWLQJP\RZQFRPSDQ\
VKDUHZLWK\RXWRGD\ '\QRPLJKW\ZKLFKVHOOVPDJQHWLFMHZHOU\DQGRWKHUFUHDWLYH
SURGXFWV
)LYH/HVVRQV<RXU.LGV:LOO/HDUQ%\6WDUWLQJ$%XVLQHVV
0\ILUVW<RX7XEHYLGHRRIDPDJQHWLFEUDFHOHWZDVVXSSRVHG
3URVWKHWLF)OLSSHU7XUQV$PSXWHHV,QWR0HUPHQ WREHDYLGHRIRUP\RZQZHEVLWHWRKHOSGHPRQVWUDWHWKH
G\QDPLFIHDWXUHVRIRXUSURGXFWV,ZDVLQDKXUU\WKHGD\,
+RZ7R'HWHUPLQH,I<RXU2QOLQH%XVLQHVV,GHD(YHQ+DVD PDGHLWEHFDXVHP\ZLIH,QJULGDQG,ZHUHVWD\LQJODWHWR
&KDQFH ZUDSXSVRPHRUGHUV,VHWXSVRPHOLJKWVDJDLQVWDZKLWH
EDFNJURXQGDQGVKRWWKHYLGHRZLWKDVPDOOSRLQWDQGVKRRW
:LQH,VD%HWWHU5HFHVVLRQ,QYHVWPHQW7KDQ6WRFNV &DQRQGLJLWDOFDPHUDZLWKRXWDQ\HGLWLQJ,QWKHRULJLQDO
YLGHR\RXFRXOGHYHQKHDUWKHKRQNLQJFDUVRQ%URDGZD\
<RX7RR0D\%HD:LQQHU RXWVLGHRXURIILFHLQ1HZ<RUN,WWRRNPHWKUHHRUIRXUWDNHV
WRILWDOOWKHPDJQHWLFMHZHOU\³WULFNV´LQDPLQXWHORQJYLGHR

,SRVWHGWKHYLGHRWR<RX7XEHZHILQLVKHGXSIRUWKHQLJKW %86,1(6623325781,7,(6:(%/2*
DQGZHQWKRPH
$FFHSW3D\PHQWVRQWKHL3KRQH
-8130
%86,1(6623325781,7,(6:(%/2*
7KDQN<RX$GYHUWLVHUV
-8130
7KLVZHEVLWHZRXOGQ¶WEHZKDWLWLVZLWKRXWWKHJHQHURXVVXSSRUWRXURXU
VSRQVRUVDQGDGYHUWLVHUV7KLVZHEVLWHLVPDGHSRVVLEOHE\WKHIROORZLQJ
$G.LQJFRP
$GYHUWLVLQJ5HVXOWVFRP
$OSKD0RQH\
GBVNLQ 6TXDUHLVDQHZVWDUWXSWKDWZDVFRIRXQGHGE\-DFN'RUVH\WKHJX\

ZKRFUHDWHG7ZLWWHUDQGZDVWKHLURULJLQDO&(2$FFRUGLQJWR)DVW
'HVLJQWR'ROODUV &RPSDQ\6TXDUHLVD³LVERWKDIRROSURRIDQGDWWUDFWLYHH[SHULHQFH´WKDW
ZLOODSSHDOWRVPDOOEXVLQHVVHV
'U\&OHDQLQJ'HOLYHU\%XVLQHVVFRP
6WDUWLQJWRGD\6TXDUHDLPVWRPDNHFUHGLWFDUGVDOHVDVHDV\
)UDQFKLVHWR2ZQ IRUUHWDLOHUVZLWKDQL3KRQHDVLWLVIRUVRPHGXGHVHOOLQJD
FRXFKRQ&UDLJVOLVW
+LGGHQ%XVLQHVV,GHDV
:LWK6TXDUHDQ\RQHFDQDFFHSWFUHGLWRUGHELWFDUG
/RFDO0XJVKRWV SD\PHQWVE\GRZQORDGLQJWKHDSSDQGSOXJJLQJDOLWWOH
SODVWLFFXEHLQWRWKHKHDGSKRQHMDFNRIDQL3KRQHL3RG
0D[LPXP/HYHUDJH 7RXFKL3DGRU$QGURLGSKRQH$IWHUDTXLFNVZLSHRIWKH
FDUGWKURXJKWKHUHDGHUWKHPHUFKDQWWXUQVWKHGHYLFHRYHU
6SHDNLQJ5RVHV WRWKHFXVWRPHUWRVLJQKLVRUKHUQDPHRQWKHWRXFKVFUHHQ
XVLQJDILQJHULQVWHDGRIDSHQ7KHFXVWRPHUFDQDGGDWLS
7KH/D]\:D\7R%X\$QG6HOO&DUV)RU3URILW HLWKHUE\SHUFHQWDJHRUDSDUWLFXODUDPRXQWDQGWKHQHQWHUV
WKHLUSKRQHQXPEHURUHPDLODGGUHVV,QWKHEHVWFDVHWKH
UHFHLSWPHVVDJHZLOOEX]]LQWKHFXVWRPHU¶VSRFNHWDVDQ
HPDLORU606WH[WPHVVDJHZKLOHZDONLQJDZD\ZLWKWKHLU
SXUFKDVH
&XVWRPHUVDUHFKDUJHGDVXVXDOE\WKHLUEDQNVRUFUHGLWFDUG
FRPSDQLHVDQG6TXDUHVHWWOHVXSWKHQHWIXQGVZLWK
PHUFKDQWVHDFKQLJKWLQVWHDGRIDWWKHHQGRIWKHPRQWK7KH
VZLSHUDQGDSSOLFDWLRQDUHERWKIUHHDQGLQFOXGHDFFHVVWRDQ
RQOLQHGDVKERDUGZLWKDQDO\WLFVWKDWKHOSPHUFKDQWVWUDFN
H[DFWO\ZKDWWKH\¶YHEHHQVHOOLQJ

%86,1(6623325781,7,(6:(%/2*
6KDUH
&RQYLQFH7KHP,Q6HFRQGV
2U/HVV
-8130
1LFKRODV%RRWKPDQWDONVWR0DJJLH5RGULTXH]RQWKH(DUO\6KRZRQ&%6
DERXWKLVODWHVWERRN³&RQYLQFH7KHPLQ6HFRQGV´ %86,1(6623325781,7,(6:(%/2*
,QYHQWRUV¶%LOORI5LJKWV"
-8130
'$01,:,6+,¶'7+28*+72)7+$7
%D]DDUYRLFH¶V6DP'HFNHURQ
KRZWRPDNHWKHPRVWRIIDQ
IHHGEDFN²OLYH:RUGRI0RXWK
6XSHUJHQLXVSUHYLHZ
-8130
,QYHQWRUV'LJHVWLVUHSRUWLQJWKDWDWWKH$VVRFLDWLRQRI8QLYHUVLW\
7HFKQRORJ\0DQDJHUVDQQXDOPHHWLQJWZRPHGLFDOLQQRYDWRUVXQYHLOHG
DGUDIWRIWKH³$FDGHPLF,QYHQWRUV¶%LOORI5LJKWV´
$OWKRXJKELOOHGDVD³FROODERUDWLYHZRUNLQSURJUHVV´WKH
LQLWLDWLYHKLJKOLJKWVRQJRLQJWHQVLRQEHWZHHQDFDGHPLFDQG
VWXGHQWLQYHQWRUVRQRQHVLGHDQGXQLYHUVLW\DGPLQLVWUDWRUV
RQWKHRWKHU$WVWDNHZKRXOWLPDWHO\FRQWUROVDQGSURILWV
IURPLQWHOOHFWXDOSURSHUW\GHYHORSHGRQFDPSXVHVDFURVVWKH
FRXQWU\
$VVRFLDWLRQRI8QLYHUVLW\7HFKQRORJ\0DQDJHUVRU$870
:H¶UHEULQJLQJWRJHWKHUDPD]LQJPDUNHWHUVIRU:RUGRI0RXWK FLWLQJWKHJURXQGEUHDNLQJ%D\K'ROH$FWRIVD\
6XSHUJHQLXV7KH³+RZWREH*UHDWDW:RUGRI0RXWK0DUNHWLQJ´ XQLYHUVLWLHVVKRXOGRZQDQGFRQWURO,3GHYHORSHGE\
&RQIHUHQFHLQ1HZ<RUNRQ-XO\7KHGD\ZLOOIHDWXUHKRZWR SURIHVVRUVDQGVWXGHQWVZKHQWKH\XVHIHGHUDOIXQGVDQG
FODVVHVUHDOZRUOGFDVHVWXGLHVDQGEULOOLDQWDXWKRUV<RX¶UHJRLQJ IDFLOLWLHV
WKHQH[WGD\ .DVZDQ¶VDQG%HQWOH\¶VELOORIULJKWVSURSRVHVDPRQJRWKHU
WKLQJV
2XUOLQHXSRIVSHDNHUVLQFOXGHVZRUGRIPRXWKVXSHUJHQLXVDQG
%D]DDUYRLFH&026DP'HFNHU6DPZLOOMRLQ(VWHH/DXGHU¶V0DULVD 6WXGHQWVDQGIDFXOW\KDYHDULJKWWRIUHHGRPRIH[SUHVVLRQ
7KDOEHUJWRVKDUHKRZWKH\XVHIDQIHHGEDFNWRLPSURYHFXVWRPHUVHUYLFH WKHULJKWWRWHDFKDQGSXEOLVKWKHLUUHVHDUFKVKDOOQRWEH
DQGEXLOGWUXVW,QKLVOLYHSUHYLHZ6DPRIIHUVDIHZLGHDVRQKRZWKH\ DEULGJHGE\LQWHOOHFWXDOSURSHUW\SROLF\
GRLW
,QYHQWRUVVKDOOEHHQWLWOHGWRWLPHO\GLVSRVLWLRQRIWKHLU
$QGFKHFNRXWRXU<RX7XEHSDJHWRVHHDOORIRXUVSHDNHULQWHUYLHZV LQYHQWLRQVDQGWRREWDLQDFFHVVWRLQYHQWLRQVIRUZKLFKWKH

XQLYHUVLW\HOHFWVWRGLVFRQWLQXHFRPPHUFLDOL]DWLRQHIIRUW ³7KHELJJHVWFKDOOHQJHLVFUHDWLQJDTXDOLW\VFKHPHWKDWFDQ
ZLWKRXWRQHURXVUHVWULFWLRQVRUREOLJDWLRQVWRWKHXQLYHUVLW\ JRLQTXLFNO\DQGEHWDNHQDZD\HYHQTXLFNHU´VD\V+ROPHV
WKDWZRXOGDFWDVGLVLQFHQWLYHVWRFRPPHUFLDOL]H 0RUHRYHULW¶VKDUGIRUDWHPSRUDU\EXLOGLQJWRKDYHDELJ
JRRGORRNLQJSUHVHQFHRQWKHVWUHHW±UDWKHUWKDQEHLQJMXVWD
8QLYHUVLWLHVPXVWHVWDEOLVKDQGSXEOLVKWUDQVSDUHQW JORULILHGGU\ZDOOWHQW
SUDFWLFHVDQGSURFHGXUHVFRPSULVLQJWKHLUFRPPHUFLDOL]DWLRQ
SURFHVVHV +ROPHV¶VWHDPVROYHGWKHSUREOHPZLWKZKDWWKH\FDOODQ
,FHEHUJ0DGHRIPRGXODUXQLWVWKDWFDQEHDGGHGXSIRU
,QYHQWRUVKDYHWKHULJKWWRGXHSURFHVVFRQGXFWHGLQSXEOLF ODUJHUVLWHVWKHGHVLJQFDOOVIRUDVWHHOVWUXFWXUHZUDSSHGLQ
ZLWKSXEOLFDFFHVVWRDOOUHFRUGVDVWKH\PD\UHTXHVW KLJKWHFKSODVWLFIDEULFFDOOHG()7(%XWWKDWIDEULFDOVRKDV
³DLUEHDPV´VWLWFKHGLQWRLW±VWUXFWXUDOVXSSRUWVWKDWDUH
&RQWLQXH5HDGLQJ³,QYHQWRUV¶%LOORI5LJKWV"´ EDVLFDOO\ELJEDOORRQVDQGDUHXVXDOO\IRXQGLQKLJKHQGSXS
WHQWVDQGDLUSODQHHYDFXDWLRQUDPSV
3KRWRE\\YHVBJXLOORX
$VDUHVXOWZKHQLQIODWHGWKH()7(EHFRPHVDGUDPDWLF
IDFHWHGURRIWKDWWXUQVWKHWHPSRUDU\EXLOGLQJLQWRELJ
GUDPDWLFSLHFHRIFRQWHPSRUDU\DUFKLWHFWXUH³7KHYROXPHLV
DOPRVWQRWKLQJEXWDLU´VD\V+ROPHV³:KLFKPHDQVWKHUH¶VD
PLQLPDOFDUERQIRRWSULQW´
%86,1(6623325781,7,(6:(%/2*
:KDW¶VPRUH+ROPHVDQG:RRGV%DJRWEHOLHYHWKDWVLPSOH
,QIODWDEOH%XLOGLQJV&RXOG(DUQ HFRQRPLFVPDNHWKH,FHEHUJVLQWRDZLQZLQVROXWLRQIRU
GHYHORSHUV*LYHQFRQVWUXFWLRQFRVWVRIDERXWPLOOLRQWKH\
0LOOLRQV HVWLPDWHWKDWDQ,FHEHUJFRXOGEULQJLQDWOHDVWPLOOLRQLQ
-8130 UHQWLQWKHILUVW\HDUDQGPLOOLRQDIWHUWKDW7KH\ILJXUHG
DUHQWDOUDWHRIDVTXDUHIRRW0DQKDWWDQUHWDLOVSDFHV
UHQWIRUEHWZHHQ
0RUHRYHUEHFDXVHRIWKHKXJHIDFHWHGSODQHVRQWKH,FHEHUJ
IDFDGHWKH\FDQEHFRPHKXJHSURMHFWLRQVFUHHQVGUDZLQJ
DGYHUWLVLQJUHYHQXHV
3KRWRE\)DVW&RPSDQ\
,Q1HZ<RUNWKHPRVWJODULQJVLJQVRIWKH*UHDW5HFHVVLRQDUHWKH
VWDOOHGFRQVWUXFWLRQVLWHVOLWWHULQJWKHFLW\±ERDUGHGXSGXVW\DQG
GHVRODWHH\HVRUHV
7KHDUFKLWHFWXUHPHJDILUP:RRGV%DJRWPD\KDYHDVROXWLRQZKLFK
WKH\¶YHMXVWXQYHLOHG7HPSRUDU\LQIODWDEOHEXLOGLQJVWKDWOHWWKH
GHYHORSHUVPDNHPRQH\ZKLOHWKH\ZDLWIRUWKHLUILQDQFHVWRVKDSHXS
³:HWULHGWRUHLPDJLQHKRZ\RXFRXOGUHXVHWKRVHVLWHV´-HII+ROPHV
WKHSDUWQHULQFKDUJHRI:RRGV%DJRW¶V1HZ<RUNRIILFHWROG
)DVW&RPSDQ\FRP
6WDOOHGVLWHVSRVHDSUREOHPIRUGHYHORSHUVZKRVHILQDQFLQJ
KDVGULHGXSLQWKHUHFHVVLRQEHFDXVHHYHQZKHQVLWHVOD\
XQXVHGWKH\ZUDFNXSKXJHWD[EXUGHQV±DVPXFKDV
PLOOLRQD\HDU$QGVLWHVFDQHDVLO\JRIDOORZIRUWR\HDUV

%86,1(6623325781,7,(6:(%/2* 3KRWRIURP7KH%DFNEXUQHU
&RQVLJQPHQW)RU<RXU.LWFKHQ
-8130
*52:1837+,1.,1*
)DFHERRN2SHQ*UDSK/HDGVWR
7DQJLEOH%HQHILWVIRU%UDQGV
-8130
$QQLH+LOOLDUGGLGQ¶WOHDYHKHUGUHDPIRUDEXVLQHVVRQWKHEDFNEXUQHU
EXWWKHQDPHVKHJDYHLWZDVSODFHGWKHUH7KUHHPRQWKVDJR$QQLH
ODXQFKHG7KH%DFNEXUQHUDNLWFKHQZDUHFRQVLJQPHQWVKRSUHSRUWV
+RPHWRZQ$QQDSROLVFRP
³:KRFDQUHDOO\VSHQGDIRUWXQHDW:LOOLDP6RQRPDULJKW
QRZ"´+LOOLDUGVDLG³:HKDYHKLJKHQGNLWFKHQVWRUHVKHUH
OLNH:LOOLDP6RQRPDDQG6XU/D7DEOHEXWWKHUHZDVQ¶W
)DFHERRN¶V2SHQ*UDSKSURWRFROZDVDQQRXQFHGEDFNLQ$SULO,WDOORZV
DQ\WKLQJIRUDORZHUEXGJHW´
MXVWDERXWDQ\ZHESURSHUW\WRLQFRUSRUDWHEDVLF)DFHERRNVRFLDO
IXQFWLRQDOLW\,W¶VVWLOOYHU\QHZDQGWKHPRVWEDVLFLPSOHPHQWDWLRQRILW
7KH%DFNEXUQHULVWXFNHGLQWKHUHDURIDFRPPHUFLDOO\]RQHG
WKH³/LNHÉXWWRQLVSRSSLQJXSHYHU\ZKHUHIURPEUDQGHGHFRPPHUFH
KRXVHRQ%D\5LGJH$YHQXHDFFHVVHGIURPDJUDYHOGULYHRII
VLWHVWRPRYLHPLFURVLWHVWREORJVDQGPDLQVWUHDPQHZVRXWOHWV
RI&KHVDSHDNH$YHQXH+HUVKDUHRIWKHFRQYHUWHGKRXVHLV
WKHROGNLWFKHQDQGGLQLQJURRPZKLFK+LOOLDUGWKRXJKWZDV
,W¶VWKHHDVLHVWZD\WROD\HUVRFLDOIXQFWLRQDOLW\RQWRH[LVWLQJEUDQG
ILWWLQJ
SURSHUWLHVWKHORZKDQJLQJIUXLWLQDOPRVWDQ\VRFLDOVWUDWHJ\+RZHYHU
EHFDXVHLW¶VVRQHZ,RIWHQILQGP\VHOIKDYLQJWRMXVWLI\WKLVWDFWLFWR
2QHFOHFWLFEDNHU¶VUDFNVFXSERDUGVDQGFKURPHVKHOYHV
FOLHQWVDORWPRUHWKDQRWKHUVRFLDOWDFWLFV7KHODFNRIVROLGUHVXOWV
+LOOLDUGGLVSOD\VDQ\WKLQJIURPWKHQHZO\ZHGJLIWQHYHUHYHQ
UHPRYHGIURPDER[WRDVHWRIUHWURFXSVDQGVDXFHUVZLWK DURXQGPDMRULPSOHPHQWDWLRQVRIWKH/LNHEXWWRQGRHVQ¶WKHOSWKH
VLWXDWLRQ
ZKLFKWKHSUHYLRXVRZQHUZDVUHDG\WRSDUW
7KHWKUHHPRVWFRPPRQTXHVWLRQVEUDQGVDUHDVNLQJDERXW2SHQ*UDSK
$PRQJWKHILQGVODVWZHHNZHUHD3URIHVVLRQDO.LWFKHQ$LG
SOXJLQVDQGP\VLPSOLILHGUHVSRQVHVDUH
0L[HUZKLFKPLJKWUHWDLODWSULFHGDWDQGD
EDUHO\XVHGVWDLQOHVVVWHHOZRNXVXDOO\DERXWWKDW
:LOOSHRSOHDFWXDOO\FOLFNRQWKHVHEXWWRQV"<HV
+LOOLDUGLVVHOOLQJIRU
WKH\¶UHGRLQJLWLQGURYHV/RRNDWWKH/HYL¶VVWRUHILJXUHV
7KRXVDQGVRISHRSOHKDYHOLNHGHDFKLQGLYLGXDOSURGXFWLQ
$QRWKHUXQLTXHDVSHFWRIWKHEXVLQHVVLVWKHVHOHFWLRQRI
WKHLUVWRUH7KH/LNHEXWWRQLVDIDPLOLDUIHDWXUHWRHYHU\RQH
KDQGPDGHDSURQVVHZQE\+LOOLDUG¶VPRWKHUWKDWSDLUEROG
RQ)DFHERRNEXWQRZLW¶VDYDLODEOHHOVHZKHUH
EULJKWO\FRORUHGSULQWVDQGWULPV7KHVW\OHVDUHVLPLODUWRWKH
UHWURFKLFDSURQVDYDLODEOHDW$QWKURSRORJLHZKLFKWHQGWR
'RHVDQ\RQHFDUHZKHQWKHLUIULHQG/LNHV
UHWDLOEHWZHHQDQGEXW+LOOLDUG¶VDUHHLWKHURU
VRPHWKLQJ"<HV³/LNLQJ´LVDFRPPRQSUDFWLFHDPRQJWKH

PLOOLRQXVHUVRI)DFHERRNDQGVRDUHVLPLODUDFWLRQVRQ
RWKHUVRFLDOQHWZRUNV&RQVXPHUVUHO\RQWKHVKDULQJRI
³,W¶VP\KRSHWKDWWKHVWRUHSURYLGHV\RXQJDQGROGDPRUH
LQIRUPDWLRQDQG³/LNLQJÉUDQGVSURGXFWVSHRSOHFRQWHQWLQ
FRVWHIIHFWLYHZD\RIFOHDULQJWKHLUKRPHVDQGILQGLQJNLWFKHQ
RUGHUWRH[SUHVVWKHLUSHUVRQDOLW\LQWHUHVWVDQGSHUVRQDO
DQGGLQLQJHVVHQWLDOV´VKHVDLG
EUDQGWRWKHLUIULHQGVDQGIROORZHUV

:KDWNLQGRIUHVXOWVFDQZHH[SHFWWRVHHIURP %86,1(6623325781,7,(6:(%/2*
WKLV"(YHU\³/LNH´FDQDPSOLI\\RXUYDOXHSURSRVLWLRQ
WKURXJK)DFHERRNDWDQDFFHOHUDWHGUDWHWKDQSUHYLRXV /DXQFK$1HZ3URGXFW2Q
WDFWLFV,WKHOSVWREXLOG\RXUEUDQG¶VFRPPXQLW\IDVWHU,W
NQRFNVGRZQEDUULHUVEHWZHHQ\RXURZQHGGLJLWDOSURSHUWLHV 7ZLWWHU
DQGWKHSULPDU\VRFLDOQHWZRUN\RXUFRQVXPHUVXVH$QGRI -8130
FRXUVHDWWKHPRVWEDVLFOHYHOLW¶VDFWLQJDVD
UHFRPPHQGDWLRQHQJLQHWRPDNHLWHDVLHUWKDQHYHUIRU
FRQVXPHUVWRHQGRUVH\RXUSURGXFWVWKLVLVDUHFLSHIRU
DZHVRPHVDXFHVLQFHIULHQGVDUHKLJKO\LQIOXHQWLDOLQ
FRQVXPHUV¶SXUFKDVHGHFLVLRQV
$VRIWKLVZHHNZHKDYHVRPHSRZHUIXOQHZGDWDLQRXUDUVHQDOWR
LOOXVWUDWHWKHWDQJLEOHEHQHILWVRILPSOHPHQWLQJVRFLDOIXQFWLRQDOLW\
RXWVLGHRIVRFLDOQHWZRUNV'DWDIURP6WHYH0DGGHQHFRPPHUFHVLWH
DQGHPDLOPDUNHWLQJILUP*HW5HVSRQVHSURYLGHXVVROLGILJXUHVWKDW
DFWXDOO\DQVZHUDOOWKUHHRIWKHDERYHTXHVWLRQVLQWHUPVRI52,DQG
FRQVXPHULQIOXHQFHU
)LUVWXSLWORRNVOLNH6WHYH0DGGHQ¶VLPSOHPHQWDWLRQRIWKH)DFHERRN
³/LNHÍHDWXUHLQWRLWVPRELOHFRPPHUFHVLWHLQFUHDVHGWUDIILFE\
SHUFHQWRYHUQLJKW7KLVLVKXJH5HDGPRUHDW0RELOH0DUNHWHU
8QWLOODVW\HDU1$3,QF¶VEHVWNQRZQSURGXFWOLQHZDVLWV6OHHS\:UDS
EDE\FDUULHU%XWZKHQWKHFRPSDQ\ODXQFKHGWKH%RED%DE\&DUULHUODVW
\HDULWIRFXVHGLWVHIIRUWVRQVRFLDOPHGLDHVSHFLDOO\7ZLWWHUDFFRUGLQJ
WRDVWRU\DW,QFFRP
3ULRUWRWKDWZHZHUHMXVWXVLQJWUDGLWLRQDORQOLQHDQGSULQW
DGYHUWLVLQJ´VD\V$VKOH\-HZHOOGLUHFWRURIVRFLDOPHGLD
PDUNHWLQJIRU1$3³:HZHQWIURPKDYLQJRQHIROORZHUWR
VHOOLQJRXWRXUZKROHLQYHQWRU\LQDPDWWHURIZHHNV´
6RKRZGR\RXPDNHWKHEHVWXVHRI7ZLWWHU¶VDVWRXQGLQJ
6HFRQGZKHQLWFRPHVWRHQKDQFLQJHPDLOPDUNHWLQJLWWXUQVRXWWKDW SRZHUWRUHDFK\RXUFXVWRPHUV"
DGGLQJVRFLDOVKDULQJHOHPHQWVWRHPDLOVZLOOUHVXOWLQDQDYHUDJH
LQFUHDVHRILQFOLFNWKURXJKUDWHV7KHYDULDQFHLVSURSRUWLRQDO 7KHODXQFKRI\RXUQHZSURGXFWRUVHUYLFHVKRXOGQRWEH
WRWKHQXPEHURIVKDULQJPHWKRGVLQFOXGHGLQHPDLOV7KUHHGLIIHUHQW WKHILUVWWLPH\RXU7ZLWWHUIROORZHUVKHDUIURP\RX,QVWHDG
VKDULQJRSWLRQVUHVXOWHGLQWKHKLJKHVWDYHUDJH&75/HDUQPRUH XVHWKHTXLHWWLPHEHIRUHWKHSURGXFWODXQFKWREHJLQ
DERXWWKLVVWXG\IURP*HW5HVSRQVH¶VUHSRUW WZHHWLQJUHJXODUO\DQGGHYHORSDQLGHQWLW\
,¶PH[FLWHGWRVHHPRUHUHVXOWVSRXULQQRZWKDW2SHQ*UDSKLVEHLQJ 0DNH7ZLWWHU\RXUWHVWLQJJURXQG$OH[LV:ROIHUIRXQGHU
LPSOHPHQWHGDFURVVWKHERDUGIRUVRPDQ\EUDQGV.HHS\RXUH\HV DQGHGLWRULQFKLHIRI7KH%HDXW\%HDQFRPVWDUWHGSRVWLQJ
SHHOHG KHDOWKEHDXW\DQGQXWULWLRQWLSVRQ7ZLWWHU7KH\ZHUHPXFK
OLNHZKDWZRPHQ¶VPDJD]LQHVZRXOGSURYLGHH[FHSW,WRRN
RXWDOOWKHIRFXVRQZHLJKWORVV,WZDVDOODERXWKHDOWK\OLYLQJ
DQGLQRQHPRQWK,KDGIROORZHUV´
)RUHYHU\SURGXFWLQGXVWU\RUWRSLFWKHUHDUHLQIOXHQWLDO
7ZLWWHUXVHUVZKRVHWZHHWLQJDERXW\RXUQHZSURGXFWFDQ
PDNHDELJGLIIHUHQFHHLWKHUEHFDXVHWKH\KDYHDODUJH
QXPEHURIIROORZHUVRUKLJKO\LQIOXHQWLDOIROORZHUVUHSUHVHQW
\RXUELJJHVWFXVWRPHUVVXFKDVDUHWDLOFKDLQWKDWPLJKW
FDUU\\RXUSURGXFWRUZULWHDQLQIOXHQWLDOEORJ

7KLQNEH\RQG7ZLWWHU'DOODV/DZUHQFHPDQDJLQJGLUHFWRU ZHEVLWHZZZGLJWKLVFKLFNPWFRPDQGLQVSHFLDOW\UHWDLO
IRU%XUVRQ0DUVWHOOHU¶V3URRI,QWHJUDWHG&RPPXQLFDWLRQV VWRUHVDFURVVWKHVWDWHLQFOXGLQJWKH%ODFNELUG.LG6KRSLQ
DJHQF\UHFRPPHQGVDPXOWLSURQJHGDSSURDFKWKDWJLYHV 0LVVRXOD
\RXVHYHUDOSRVVLEOHSRLQWVRIFRQWDFWZLWKFXVWRPHUV+H
SDUWLFXODUOLNHVGLUHFWLQJWKHPWR)DFHERRNZKHUH\RXFDQ $OORIWKLVIDOOVXQGHURQHODEHODEUDQGFDOOHG³'LJ7KLV
KDYHWLHLQDGYHUWLVLQJLPDJHVDQGYLGHRLQWHJUDWHGULJKWLQWR &KLFN´ZKLFK&OLQHJDYHKHUVHOI\HDUVDJRZKHQVKHQDPHG
WKHSODWIRUPDQGFDQZULWHORQJHUSRVWV KHUXQXVXDOEXVLQHVVWKDWRIIHUHGJDUGHQLQJDQGJUDSKLF
GHVLJQVHUYLFHV
3KRWRE\EL]EULHIV
7KDWEXVLQHVVIDGHGDZD\ZKHQ&OLQHEHFDPHWKH
GHYHORSPHQWGLUHFWRUDWWKH0LVVRXOD$UW0XVHXP:KHQVKH
EHFDPHSUHJQDQWIRUWKHVHFRQGWLPHVKHZDQWHGWREHFRPH
DIXOOWLPHPRWKHUZKRZURWHDQGVHZHGHYHU\GD\
%86,1(6623325781,7,(6:(%/2* ³,WZDVDKXJHULVNDQGDKXJHGHFLVLRQWRVWD\DWKRPHDQGEH
DPRP´&OLQHVDLG³,ORYHGP\MREDWWKHPXVHXPEXWP\
0RP¶V0XOWL3URQJHG+RPH NLGVDUHP\1RSULRULW\´
%XVLQHVV /RJRIURPGLJWKLVFKLFN
-8130
%86,1(6623325781,7,(6:(%/2*
*RRJOH9RLFH1RZ2SHQ7R
(YHU\RQH
-8130
0LVVRXOLDQ
+RPHLVZKHUH1LFL+ROW&OLQHQRXULVKHVKHUKHDUWDQGKHU
EXVLQHVVERWKRIZKLFKVHDPOHVVO\FRPPLQJOHLQKHUEXV\OLIH
DVDPRWKHUHQWUHSUHQHXUZULWHUGHVLJQHURINLGV¶FORWKLQJ %HWD1HZVUHSRUWVWKDW*RRJOH9RLFHWKHSRSXODUDQGRIWHQFRQWURYHUVLDO
DQGJDUGHQHU 9R,3YRLFHPDLODQGPHVVDJLQJVHUYLFHIURP0RXQWDLQ9LHZVHDUFK
JLDQW*RRJOHLVQRZRSHQIRUDQ\RQHLQWKH86WRXVH
2WKHUODEHOVZRXOGDOVRGHILQHWKLVIRXUWKJHQHUDWLRQ
0RQWDQDQDPRQJWKHPZLIHDQGULVNWDNHU 3UHYLRXVO\\RXFRXOGRQO\RSHQD*RRJOH9RLFHDFFRXQWLI\RX
UHFHLYHGDQLQYLWDWLRQIURPDXVHUDOUHDG\SDUWLFLSDWLQJLQWKH
)OH[LEOHDQGLPDJLQDWLYH&OLQHTXLOWVWRJHWKHUDQ SURJUDP
XQXVXDOZRUNGD\IURPKHUKRXVHLQWKHKHDUWRI0LVVRXOD
,Q0D\*RRJOHRSHQHGWKHSURJUDPWRDQ\ERG\ZLWKDHGX
,QDQGDURXQGPHDOVRXWLQJVDQGQDSVZLWKKHU\RXQJ PDLODFFRXQWJLYLQJVWXGHQWVDQGHGXFDWRUVDVKRWDWLW
GDXJKWHUV&OLQHZULWHVDEORJ±ZKLFKKDVSDLGVSRQVRUVKLS
±DQGVHZVZKLPVLFDOFKLOGUHQ¶VFORWKLQJWKDWKDVEHFRPHVR %XWZLWKDOUHDG\RYHURQHPLOOLRQXVHUVLQWKHLQYLWDWLRQRQO\
VRXJKWDIWHUWKDW&OLQHLVKLULQJDQRWKHUVHDPVWUHVVEHFDXVH YHUVLRQ*RRJOHKDVRSHQHG9RLFHWRDQ\RQH
ORFDOVKRSVFDQ¶WNHHSKHUKDQGFUDIWHGLWHPVLQVWRFN
³:H¶UHSURXGRIWKHSURJUHVVZH¶YHPDGHZLWK*RRJOH9RLFH
<RXFDQILQG&OLQHRQ)DFHERRNRQHWV\FRPDQGRQKHU RYHUWKHODVWIHZ\HDUVDQGZH¶UHVWLOOMXVWVFUDWFKLQJWKH

VXUIDFHRIZKDW¶VSRVVLEOHZKHQ\RXFRPELQH\RXUUHJXODU 3HRSOHOLNH0U0XVNPD\KDYHUHGHILQHGZKDWLWPHDQVWREH
SKRQHVHUYLFHZLWKWKHODWHVWZHEWHFKQRORJ\,W¶VHYHQPRUH ULFKSDUWLFXODUO\\RXQJDQGULFK%XWVRPHKRZPDQ\RI
DPD]LQJWRWKLQNDERXWKRZIDUFRPPXQLFDWLRQKDVFRPH WKHVHVHHPLQJO\VXFFHVVIXOSHRSOHOLYHRQWKHILQDQFLDOHGJH
RYHUWKHODVWFRXSOHKXQGUHG\HDUV´*RRJOHVDLGWRGD\ ZDLWLQJKRSLQJIRUWKHQH[WGHDOWRXQORFNWKHLUQH[WIRUWXQH
3KRWRE\*RRJOH 3KRWRE\JDERIU
%86,1(6623325781,7,(6:(%/2* %86,1(6623325781,7,(6:(%/2*
7KH&DVK3RRU:RUOG2I+LJK 3KRQH6FDP7DUJHWV<RXU%DQN
7HFK(QWUHSUHQHXUV $FFRXQW
-8130 -81$0
$VRQHRIWKHFRIRXQGHUVIRU3D\SDODQGWKHPLQGWKDWKHOSHGFUHDWHWKH
7HVODQRRQHUHDOO\H[SHFWHGWRKHDUWKDW(ORQ0XVNZDVRXWRIFDVK
UHSRUWV7KH1HZ<RUN7LPHV
0U0XVNLVDPHPEHURIWKH3D\3DO0DILD²WKRVHVHULDO
HQWUHSUHQHXUVZKRIRUDWLPHORRNHGOLNHWKH%UDW3DFNRI
WKH9DOOH\+HPDGHDIRUWXQHDVDFRIRXQGHURI3D\3DOWKH 7KH)%,LVZDUQLQJFRQVXPHUVWREHRQWKHDOHUWIRUVFDPPHUVZKRWLHXS
HFRPPHUFHSD\PHQWVV\VWHP1RWVRORQJDJRKHKDGPRUH WKHLUSKRQHOLQHVZKLOHHPSW\LQJWKHLUEDQNDFFRXQWV:DOOHW3RSUHSRUWV
WKDQPLOOLRQLQFDVK1RWEDGIRU
+LJKWHFKFULPLQDOVDUHQRZXVLQJDXWRPDWHGGLDOLQJ
1RZ0U0XVNZKRLVLQWKHPLGGOHRIDGLYRUFHVD\VKLV SURJUDPVDQGPXOWLSOHDFFRXQWVWRRYHUZKHOPWKHSKRQH
DFFRXQWLVHPSW\$FWXDOO\OHVVWKDQHPSW\+HVD\VKH OLQHVRIXQVXVSHFWLQJFRQVXPHUVDQGVPDOODQGPHGLXP
LQYHVWHGKLVODVWFHQWLQKLVEXVLQHVVHVDQGLVOLYLQJRIIORDQV VL]HGEXVLQHVVHV
IURPKLVZHDOWK\IULHQGV+HVXEVLVWVDFFRUGLQJWRFRXUW
ILOLQJVRQDPRQWKDQGVWLOOIOLHVKLVSULYDWHMHW 7KHGHQLDORIVHUYLFHFDOOVZKLFKFDQLQFOXGHGHDGDLU
DGYHUWLVHPHQWVRUSKRQHVH[PHQXVDUHDFWXDOO\GLYHUVLRQDU\
³$ERXWIRXUPRQWKVDJR,UDQRXWRIFDVK´0U0XVN WDFWLFVGHVLJQHGWRWLHXSDYLFWLP¶VSKRQHOLQHV$QGZKLOHWKH
DFNQRZOHGJHGLQDGLYRUFHFRXUWILOLQJWKDWZDVZLGHO\ OLQHVDUHEXV\WKHIUDXGVWHUV²LPSHUVRQDWLQJWKHYLFWLPV²
FLUFXODWHGDPRQJWKH:HVW&RDVWGLJLWDOHOLWH UDLGWKHLUEDQNDFFRXQWVRQOLQHWUDGLQJDQGRWKHUPRQH\
PDQDJHPHQWDFFRXQWV
,WZDVTXLWHDUHYHODWLRQRQHWKDWODLGEDUHDQXQFRPIRUWDEOH
WUXWKLQWKHZRUOGRIYHQWXUHFDSLWDOKLJKWHFKHQWUHSUHQHXUV :HHNVRUHYHQPRQWKVEHIRUHWKHSKRQHFDOOVVWDUWWKH)%,
ZKRORRNULFKDUHRIWHQUHODWLYHO\FDVKSRRUDWOHDVWQH[WWR ZDUQVDFULPLQDOXVHVVRFLDOHQJLQHHULQJWDFWLFVRUPDOZDUH
WKHLUJOLWWHULQJLPDJHV0DUN=XFNHUEHUJPD\EHDELOOLRQDLUH WRH[WUDFWSHUVRQDOLQIRUPDWLRQVXFKDVSDVVZRUGVDQG
ZKHQRULI)DFHERRNJRHVSXEOLF/DUU\(OOLVRQWKHIRXQGHU DFFRXQWQXPEHUVIURPLQWHQGHGYLFWLPV2QFHWKHVFDP
RI2UDFOHOLYHVOLNHDNLQJ%XWPRVWRIKLVZHDOWKLVWLHGXSLQ DUWLVWVKDYHHQRXJKLQIRUPDWLRQWKH\WLHXSWKHYLFWLP¶V
2UDFOHVWRFN0U(OOLVRQOLYHVLQSDUWRIIORDQV YDULRXVSKRQHOLQHVDQGHLWKHUFRQWDFWDILQDQFLDOLQVWLWXWLRQ

SUHWHQGLQJWREHWKHYLFWLPRUVLSKRQRIIIXQGVIURPWKHLU
RQOLQHEDQNDFFRXQWV
)LQDQFLDOLQVWLWXWLRQVW\SLFDOO\FDOOWRYHULI\VXFK
WUDQVDFWLRQVEXWFDQ¶WJHWWKURXJKGXHWRWKHGHQLDORI
VHUYLFHDWWDFN,IWKHWUDQVDFWLRQVDUHQ¶WDSSURYHGWKH
FULPLQDOVZLOOFRQWDFWWKHILQDQFLDOLQVWLWXWLRQSRVHDVWKH
YLFWLPDQGFRQILUPWKHWUDQVDFWLRQV7KH\FDQDOVRDGGWKHLU
RZQSKRQHQXPEHUWRYLFWLPV¶DFFRXQWVDQGVLPSO\ZDLWIRU
WKHEDQNWRFDOODQGUHTXHVWDSSURYDO%\WKHWLPHWKHYLFWLP
RUILQDQFLDOLQVWLWXWLRQUHDOL]HVZKDWKDVKDSSHQHGLW¶VWRR
ODWH
7RDYRLGEHLQJDYLFWLPRIWKLVQHZVFDPJRKHUH
3KRWRE\XVJRY

-XQH
7RGD\·V7DEEORLG
%86,1(6623325781,7,(6:(%/2* ZKLOHSDUHQWVJHWDEUHDN
0XVLF)HVWLYDO'D\&DUH 3KRWRE\5LYDUG
-81$0
%86,1(6623325781,7,(6:(%/2*
6DQ'LHJR,QYHQWRU+DV*DPH
3ODQ
-81$0
,I\RX¶YHHYHUEHHQWRDPXVLFIHVWLYDORUVHHRQHRQ79\RXNQRZWKDW
SHRSOHZKRWKHLUFKLOGUHQWRWKHVHPXGG\DIIDLUVVRPHWLPHVHQGXS
VWUXJJOLQJ7ZHQW\IRXUKRXUVRIPXVLFPLJKWEHIXQEXWZLWKDWRGGOHU
LW¶VHDV\WRWXUQLQWRDQLJKWPDUH%ULWLVKQDQQ\6HOLQD&RSHVDZWKLVDV
DQRSSRUWXQLW\WRVWDUWDPXVLFIHVWLYDOGD\FDUH
0LUURUFRXN
6RDNHGWRWKHVNLQDQGNQHHGHHSLQPXGDWDPXVLFIHVWLYDO
6HOLQD&RSHZDVLQVSLUHGWRVHWXSKHURZQEXVLQHVV
³0\KHDUWZHQWRXWWRDOOWKRVHZHDU\SDUHQWVVWUXJJOLQJZLWK $FFRUGLQJWRWKH6DQ'LHJR8QLRQ7ULEXQHWR-DFN'HJQDQHYHU\WKLQJ
EXJJLHVDQGUHVWOHVVFKLOGUHQ LVDJDPH$QLQVXOW²VRPHRQHWROGKLPKHZDVWDONLQJGULYHO²EHFDPH
DERDUGJDPHRIQRQVHQVHZRUGV
³$QG,WKRXJKWWKHUHKDGWREHDEXVLQHVVRSSRUWXQLW\WKHUH´
VD\V6HOLQDDQDQQ\DQGFKLOGPLQGHUIURP1RUWK/RQGRQ 7KHZRUG³WUDVK´VWXFNLQ'HJQDQ¶VKHDGDQGKHEHJDQ
ZRQGHULQJZKDWRQHPLJKWILQGLQDFHOHEULW\¶VJDUEDJH+H
6R6HOLQDDVNHGSDUHQWVLIWKH\ZRXOGXVHDIHVWLYDO WXUQHGWKDWLGHDLQWRDWULYLDJDPHQDPHG\RXJXHVVHGLW
EDE\VLWWLQJVHUYLFHLILWZDVDYDLODEOH 7UDVK
³7KHDQVZHUZDVDUHVRXQGLQJ\HVDQG,VWDUWHGWRGUHDP ³,¶YHNLQGRIWUDLQHGP\PLQGVRWKDWHYHU\WKLQJWKDWKDSSHQV
DERXWDEXVLQHVVZKHUH,FRXOGSURYLGHDFKLOGFDUHVHUYLFH´ WRPHLQDGD\FDQEHDQLQVSLUDWLRQIRUDJDPH´KHVDLG
7ZR\HDUVDQGDPRXQWDLQRIZRUNODWHUDQGKHUGUHDPVKDYH $OWKRXJKKHRQO\VWDUWHGGHVLJQLQJJDPHVILYH\HDUVDJR
FRPHWUXH 'HJQDQKDVKDGWKUHHJDPHVSXEOLVKHGDQGKDVDQRWKHUWKUHH
VFKHGXOHGIRUUHOHDVHWKLV\HDU
7KLVVXPPHU%RXWLTXH%DE\VLWWLQJKDVKLWWKHIHVWLYDOVFHQH
ZLWK6HOLQDDQGKHUWHDPVNHHSLQJ\RXQJVWHUVHQWHUWDLQHG 6WLOOLW¶VQRWDVLI'HJQDQFDQTXLWKLVGD\MRE²KHZRUNV

LQ$,'6UHVHDUFKDWWKH8QLYHUVLW\RI&DOLIRUQLD6DQ'LHJR² )ROORZ%UHQGHQRQ7ZLWWHUDW#6KDUN7DQN$%&
DQ\WLPHVRRQ
7KHJDPHPDUNHWLVDIUDJPHQWHGRQHZKHUHLFRQLFJDPHV
OLNH6FUDEEOHRU0RQRSRO\RUHYHQUHFHQWVXFFHVVHVOLNH
%DQDQDJUDPVDUHUDUH0RVWJDPHVDUHWKHGRPDLQRIVPDOO
JDPHVKRSVDOOEXWLQYLVLEOHWRWKHJHQHUDOSXEOLF
'HJQDQLVQ¶WVXUHKHKDVFRPHXSZLWKWKHQH[W7ULYLDO
3XUVXLWEXWLWZRXOGEHQLFH³$OOLWWDNHVLVRQHJDPHOLNH
WKDW,W¶VDQLFHIDQWDV\´KHVDLG
3KRWRE\6DQ'LHJR8QLRQ7ULEXQH
%86,1(6623325781,7,(6:(%/2*
6KDUN7DQNWR5HWXUQIRU2QH
(SLVRGH
-81$0
7KHIROORZLQJLVE\%UHQGHQ6KHUUDWWRI,Q7KH6KDUN7DQN
7KH+ROO\ZRRG5HSRUWHULVUHSRUWLQJWKDW6KDUN7DQNZLOOUHWXUQIRURQH
HSLVRGHRQ7KXUVGD\-XO\DWSP
$%&KDVRQHHSLVRGHWKDWKDV\HWWRDLULQWKH86LWKDVKRZHYHUDOUHDG\
DLUHGLQ&DQDGDRQ*OREDO7KHHSLVRGHIHDWXUHV/LJKW)LOPDQG
7+,1JORVV
0DUN%XUQHWW¶V³6KDUN7DQN´ZLOOUHWXUQWR$%&WKLVVXPPHU
²IRURQHHSLVRGH7KHDLULQJLVDKROGRYHUIURPODVWVHDVRQ
7KHZHOOUHJDUGHGLIUDWLQJVFKDOOHQJHGUHDOLW\HIIRUWZLOODLU
7KXUVGD\-XO\DWSP
$%&VWLOOKDVVRPHWLPHEHIRUHWKHGHDGOLQHWRGHFLGHRQD
VHFRQGVHDVRQSURGXFHUVKDYHSLWFKHGVKDNLQJXSWKHSDQHO
RIVKDUNVE\DGGLQJDKLJKSURILOHQDPHRUWZR6RIDU
KRZHYHUWKHUH¶VVWLOOQRRIILFLDOYHUGLFWRQ³6KDUN7DQN´
7KLVLVDJRRGWKLQJLQP\PLQGWKLVPHDQVWKDWWKHVKRZLVQRWGHDG
DQG$%&KDVQRWJLYHQXS\HW,FDQRQO\KRSHWKDWWKHHSLVRGHKDV
VWURQJUDWLQJV

%86,1(6623325781,7,(6:(%/2* '$01,:,6+,¶'7+28*+72)7+$7
:KDW,V,W" +RZ7UDGHU-RH¶VJLYHV\RX
-81$0
JRRGYLEHVZKHQ\RXJHWKRPH
-81$0
<HVWHUGD\ZHSUHVHQWHGDSKRWRJUDSKRIDJROGPHGDOZLQQLQJSURGXFW
GHVLJQDWWKH,QWHUQDWLRQDO'HVLJQ([FHOOHQFH$ZDUGV%XWZH
FRXOGQ¶WILJXUHRXWZKDWLWZDV,WORRNHGOLNHDIORZHUYDVHRUDZLQH
FDUDIDQGZDVFDOOHG2QH'RZQ 6KDUH

%86,1(6623325781,7,(6:(%/2*
3UHSDULQJ)RU*URZWK$QG
6XFFHVV
-81$0
-XVWRQHUHDGHU6KDURQ%JXHVVHGWKDW2QH'RZQLVDKXPDQHUDWWUDS
,WKLQNVKH*RRJOHGLW7KHWUDSUHVWVSUHFDULRXVO\LQDKRUL]RQWDO
SRVLWLRQRQDFLUFXODUIRRW%DLWLQVLGHZRXOGOXUHWKHUDWLQWRWKHWUDSD
PHWDOLQVHUWLQWKHEDVHFRXSOHGZLWKWKHZHLJKWRIWKHUDWZLOOWLSWKH
WUDSDQGEULQJLWWRDYHUWLFDOSRVLWLRQLQGLFDWLQJWKDWDUDWKDVEHHQ
WUDSSHG7KHQWKHUDWFDQEHUHOHDVHGLQVWHDGRINLOOHG,W¶VIURPWKH'6.
,6',QWHUQDWLRQDO6FKRRORI'HVLJQLQ,QGLDZKHUHUDWVDUHDPDMRU
SUREOHP
3KRWRE\'6.,6',QWHUQDWLRQDO6FKRRORI'HVLJQ
SKRWRFUHGLWL&KD]

7KHUHDUHVRPDQ\GLIIHUHQWDVSHFWVRIEXVLQHVVWKDWRQHQHHGVWRSODQ
IRUEXWDOOWRRRIWHQEXVLQHVVRZQHUVGRQ¶WSURSHUO\SUHSDUHIRUWKHWZR SKRWRFUHGLWMFRWHUKDOV
PRVWLPSRUWDQWDVSHFWVZKLFKDUHJURZWKDQGVXFFHVV,W¶VDOPRVWDV
WKRXJKWKH\GRQ¶WZDQWWRFRXQWWKHLUFKLFNHQVEHIRUHWKH\KDWFKVRWKH\ 6HOIFRQILGHQFHLVRQHRIWKHJUHDWHVWDWWULEXWHVWKDW\RXFDQKDYHRQ\RXU
ZDLWWRVHHLIHLWKHURIWKHVHDVSHFWVZLOOHYHQFRPHWKHLUZD\DQGWKHQ VLGHZKHWKHULWLVIRUEXVLQHVVRUSHUVRQDOOLIH7KHPRUHVHOIFRQILGHQFH
WKH\RIWHQWLPHVDUHQRWSURSHUO\SUHSDUHG \RXKDYHWKHPRUHOLNHO\LWLVWKDW\RXZLOOVXFFHHGLQOLIHDQGWKHPRUH
SHRSOHWKDWZLOOORRNXSWR\RXDVWKH\VHHWKDW\RXDUHFRQILGHQWDQG
7RSODQIRUHLWKHURIWKHVHILUVW\RXQHHGWRVLWGRZQDQGILJXUHRXW VRPHRQHWRIROORZ,UHFHQWO\UHDGDQDUWLFOHE\0DUVKDOO*ROGVPLWKDW
H[DFWO\ZKDW\RXULGHDRIJURZWKDQGVXFFHVVLVIRU\RXUFRPSDQ\7KLV +DUYDUG%XVLQHVV5HYLHZUHJDUGLQJERRVWLQJ\RXUVHOIFRQILGHQFHWKDW,
LQFOXGHVPDQ\GLIIHUHQWWKLQJVVXFKDVHPSOR\HHQXPEHUVSURILW IHHOHYHU\RQHFRXOGEHQHILWIURP
PDUJLQVLQYHQWRU\DQGFXVWRPHUEDVH
'RQ¶WZRUU\DERXWEHLQJSHUIHFW7KHUHDUHQHYHUULJKWRU
*HWFRPIRUWDEOHEHLQJLQWKHVSRWOLJKW6XFFHVVIXORZQHUVRI ZURQJDQVZHUVWRFRPSOH[EXVLQHVVGHFLVLRQV7KHEHVWWKDW
JURZLQJFRPSDQLHVDUHDOPRVWDOZD\VLQWKHVSRWOLJKWWR \RXFDQGRDVDOHDGHULVWRJDWKHUDOORIWKHLQIRUPDWLRQWKDW
VRPHGHJUHH±PD\EHQRWDOZD\VWRWKHJHQHUDOSXEOLFEXW \RXFDQLQDWLPHO\PDQQHUGRDFRVWEHQHILWDQDO\VLVRI
FHUWDLQO\ZLWKLQ\RXULQGXVWU\DQGZLWK\RXUHPSOR\HHV%H SRWHQWLDORSWLRQVXVH\RXUEHVWMXGJPHQW²DQGWKHQJRIRU
SUHSDUHGIRUDOHYHORIDWWHQWLRQWKDW\RXSUREDEO\KDYHQ¶W LW
UHFHLYHGEHIRUH3RVWHGUHFHQWO\RQ(QWUHSUHQHXUFRP
7DNHIDLOXUHDVLWFRPHVDVDOHVVRQOHDUQHGUDWKHUWKDQDJLDQWURDGEORFN
$OZD\VUHPHPEHUWRWDNHFDUHRI\RXUSHRSOHHVSHFLDOO\WKHRQHVWKDW WKDW\RXFDQQRWJHWSDVW7KHUHPD\EHWLPHVZKHQ\RX¶UHFRQIXVHG
H[FHHGEH\RQG\RXUH[SHFWDWLRQV<RXZLOOQHHGDOORIWKHKHOSDQG IUXVWUDWHGRUPD\EHHYHQVFDUHGUHJDUGLQJDFHUWDLQVLWXDWLRQEXWWKH
VXSSRUW\RXFDQJHWIURP\RXUVWDIIZKHQ\RXKLW\RXUVXFFHVVDQG LPSRUWDQWWKLQJLVKRZ\RXSRUWUD\\RXUVHOIRQWKHRXWVLGHWRRWKHUV
JURZWKJRDOVWKDW\RXKDYHVHWIRUWK $OZD\VKROG\RXUKHDGXSDQGVKRZFRQILGHQFHQRPDWWHUZKDWWKH
VLWXDWLRQLV
0DNHVXUHWKDWWKURXJKHYHU\DYHQXH\RXWDNHDVZHOODVDOOWKHFKDQJHV
WKDWPD\RFFXURYHUWLPH\RXQHYHUORRVHVLJKWRI\RXUFRUHEXVLQHVVWKDW ,QWKHHQG,WKLQNZHFDQDOODJUHHWKDWHYHU\WKLQJZHGRLQOLIHDQGHYHU\
\RXRULJLQDOO\VHWRXWWRZRUN.HHS\RXUFRUHEXVLQHVVDVZHOODV\RXU GHFLVLRQZHPDNHLVXOWLPDWHO\DOODERXWKDSSLQHVVDVWKHHQGUHVXOWVR
YDOXHVFORVHE\\RXUVLGHDQGGRQ¶WVWUD\FRPSOHWHO\IURPHLWKHURIWKHP VKRZKDSSLQHVVLQ\RXUZRUNDQGHYHU\WKLQJ\RXGR
%86,1(6623325781,7,(6:(%/2*
817(03/$7(5
+RZ7R%XLOG<RXU6HOI
+RZWR0DNH,WLQ$PHULFD
&RQILGHQFH -81$0
-81$0
,¶YHWDNHQDVKRUWEUHDNIURPP\VHULHV³:D\VWR$YRLG0HGLRFULW\´WR
ZULWHDSRVWDERXW+%2¶VQHZVKRZ³+RZWR0DNH,WLQ$PHULFD³

SLWFKHGDV(QWRXUDJHPHHWV1<&¶V)DVKLRQVFHQH,PXVWVD\WKHUH¶V
VRPHWKLQJYHU\JHQXLQHDQGLQVSLUDWLRQDODERXWWKHVKRZ,WKLQNLW¶VD
JUHDWVKRZIRUHQWUHSUHQHXUVWRZDWFKZKRDUHZRUNLQJWRJHWVRPHWKLQJ
RIIWKHJURXQG
%HVLGHVLWVHQWHUWDLQPHQWIDFWRUZKLOHZDWFKLQJHDFKHSLVRGH,FRXOGQ¶W
KHOSEXWQRWLFHVRPHPRWLYDWLRQDOJHPVWKDW,IHOWVKRXOGEHVKDUHGZLWK
WKH8QWHPSODWHUDXGLHQFH6RKHUHWKH\DUH
*HPVRI+RZWR0DNH,WLQ$PHULFD
6RXUFH(S#PLQ
*HP(YHU\ERG\¶VJRWLGHDV'RQ¶WWHOOSHRSOHZKDW\RX¶UHJRLQJWRGR
VKRZSHRSOHZKDW\RX¶YHGRQH *HP:KDW¶V\RXUSODQ"7KLQNRXWVLGHRIWKHER[
6RXUFH(S#PLQ 6RXUFH(S#PLQ
$1''RQ¶WOHWRQHIDLOXUHKROG\RXEDFNIURPWU\LQJDJDLQ *HP3XWLQWKHQHFHVVDU\DPRXQWRIWLPHWRZRUNDW\RXUFUDIW
6RXUFH(S# 6RXUFH(S#PLQ
*HP3XW\RXUVHOIRXWWKHUHDQGFUHDWHRSSRUWXQLWLHVWREHQRWLFHG *HP2IWHQWLPHVLW¶VQRW\RXUILUVWLGHDWKDWZLOOKLW,WFRXOGEHWKH
VHFRQGWKLUGRUIRXUWKEXWLI\RXGRQ¶WVWLFNLWWKURXJK\RXPD\QHYHU
NQRZ

6RXUFH(S#PLQ 6RXUFH(S#PLQ
*HP:KHQ\RXORVHRQHWKLQJ\RXJDLQDQRWKHU.HHS\RXUKHDGXS
)RUWKRVHRI\RXZKRKDYHZDWFKHGWKHVKRZKDYH,PLVVHGDQ\JHPV"
)RUWKRVHZKRKDYHQ¶WZDWFKHGLW\HW,HQFRXUDJH\RXWRGRVR<RX¶OO
ORYHLW
%86,1(6623325781,7,(6:(%/2*
6RXUFH(S#PLQ
:RUN/HVV$QG'R%HWWHU
-81$0
*HP,W¶VQHYHUJRLQJWREHHDV\%DQNRQJRLQJWKURXJKDUROOHU
FRDVWHUULGH
6RXUFH(S#PLQ
SKRWRFUHGLW7RUVWHQ
*HP5ROOZLWKWKHSXQFKHV1HYHUJLYHXS
+DYH\RXHYHUKHDUGWKHSKUDVH³DUH\RXZRUNLQJKDUGRUKDUGO\
ZRUNLQJ"´WKLVDUWLFOHWKDW,UHFHQWO\UHDGRQ2SHQ)RUXPWDONVGLUHFWO\
DERXWKRZ\RXFDQDFWXDOO\ZRUNOHVVLQRUGHUWRGREHWWHULQ\RXU
EXVLQHVV
1RZLW¶VQRWWKDWZHDUHVXJJHVWLQJ\RXGRQ¶WZRUNDWDOODQGJRRQD
PRQWKYDFDWLRQELQJHZHDUHPHUHO\VXJJHVWLQJWKDW\RXZRUNVPDUWHU
UDWKHUWKDQKDUGHUDQGWKXVREWDLQEHWWHUUHVXOWVLQGRLQJVR6RPDQ\
SHRSOHZRUNZD\EH\RQGWKHLUDFWXDOVFKHGXOHGKRXUVRIRSHUDWLRQ6RPH

ZKRQRUPDOO\DUHVDLGWRKDYHDKRXUZRUNZHHNDFWXDOO\HQGXS 2QRQHKDQGWKLVLVGXPEPDUNHWLQJEHFDXVHKH¶GDOUHDG\GRQHWKH
SXWWLQJLQDURXQGRUPRUHKRXUVSHUZHHNDWWKHRIILFHDQGWKHQ KDUGZRUNRIHVWDEOLVKLQJDFXVWRPHUDQGZDVQ¶WSDUWLFXODUO\LQWHUHVWHG
FRQWLQXHZRUNLQJZKHQWKH\JHWKRPHRQWKHLUFRPSXWHURUEODFNEHUU\ LQWXUQLQJWKDWFXVWRPHULQWRDKDSS\UHIHUUDO
7U\KDYLQJ\RXUHPSOR\HHVWDNHUHJXODUVFKHGXOHGGRZQWLPHHYHU\ 2QWKHRWKHUKDQGWKHROGVFKRROGHFLVLRQWRYLHZDWUDQVDFWLRQDVD
ZHHN7KLVFRXOGEHVRPHWKLQJVXFKDVQRZRUNQRFRPSXWHUQRSKRQH WUDQVDFWLRQWLPHWRPRYHRQWRWKHQH[WLVJHWWLQJPRUHDQGPRUHUDUH
FRQWDFWZKDWVRHYHUZLWKZRUNDQGQREODFNEHUU\XVDJHRQHGD\DZHHN 3HUKDSVLW¶VDQLQWHQWLRQDODFWRQKLVSDUWDZD\RIGRLQJEXVLQHVVLQWKH
VWDUWLQJDWWKHLUQRUPDOVFKHGXOHGWLPHRII7KLVZLOOVHHPLUULWDWLQJDQG PRPHQWZLWKRXWLQYHVWLQJLQRUZRUU\LQJDERXWZKDWFRPHVDVDUHVXOW
LQFRQYHQLHQWWRPRVWDWILUVWEXW\RX¶OOEHVXUSULVHGDWKRZTXLFNO\WKH\
EHFRPHWROLNHLWDQGHYHQEHJLQUHSRUWLQJWKDWZKLOHLQWKHRIILFHWKH\
DUHPRUHZRUNGRQHDVZHOODVVHHLQJEHWWHUZRUNSHUIRUPDQFHRYHUDOO
7+(60$573$66,9(,1&20(%/2*
7KLQJV,/HDUQHG)URP0\
)LUVW:HELQDU
6(7+¶6%/2* -81$0
:KDW¶VLQFOXGHG"
-81$0
7KLVLVWKHSULFLQJTXHVWLRQRIRXUWLPH
)LUVWIURPWKHEX\HU¶VSRLQWRIYLHZZKHQ,EX\WKLVFDUERLOHUSKRQH
KRZPXFKDUHWKHVHUYLFHVWKDWFRPHZLWKLWJRLQJWRFRVWPHHYHU\
PRQWKIRUHYHU"
:HVWDQGDWWKH9HUL]RQVWRUHDJRQL]LQJDERXWWKHH[WUDLQSRVWHG
SULFHIRURQHSKRQHRYHUWKHRWKHUWKHQVLJQDFRQWUDFWIRULQ
IHHV
:HDUHDWWUDFWHGWRDFDUZLWKDUHEDWHQRWFDULQJDERXWWKHH[WUD
LQOLIHWLPHJDVFRVWV
0RUHDQGPRUHWKHWKLQJZHEX\LVQ¶WDWKLQJLW¶VDVXEVFULSWLRQ7KH 7KLVSDVW:HGQHVGD\,KHOGP\YHU\ILUVWZHELQDU6RIDUWKHIHHGEDFN
WKLQJPLJKWDVZHOOEHIUHH KDVEHHQH[FHOOHQWDQGDSSDUHQWO\LWZDVJRRGHQRXJKWKDWLWWDXJKWERWK
EHJLQQHUVDQGDGYDQFHGVRPHQHZWKLQJVDERXWNH\ZRUGUHVHDUFKDQG
$QGIURPWKHVHOOHU¶VSRLQWRIYLHZ" VHDUFKHQJLQHRSWLPL]DWLRQ$KXJHWKDQN\RXWRWKRVHRI\RXZKR
DWWHQGHGDQGHVSHFLDOO\WKRVHRI\RXZKRWRRNH[WUDWLPHWRHPDLORU
:KHQ\RXVHOOPHWKDWORZFRVWHPDLOVHUYLFHGLG\RXDOVRMXVWJHW PHVVDJHPHZLWK\RXUDSSUHFLDWLRQ
\RXUVHOIRQWKHKRRNIRUDOLIHWLPHRIIUHHVXSSRUW":KDW¶VWKDWJRLQJWR
FRVW\RX" $UHSOD\RIWKHZHELQDUZLOOEHDYDLODEOHYHU\VKRUWO\IRUWKRVHRI\RXZKR
PLVVHGLWRUZKRZDQWWRZDWFKLWDJDLQ3OHDVHPDNHVXUHWRIROORZPH
:KHQ\RXWDNHKHUUHVHUYDWLRQDW\RXUKRWHODUH\RXSUHSDUHGWRGRDOO RQ7ZLWWHURUMRLQPHRQP\)DFHERRN3DJHZKLFKMXVWVXUSDVVHG
WKHZRUNDQGDWWHQWLRQ\RXQHHGWRJHWDGHFHQWUHYLHZRQ7ULS$GYLVRU" IDQVIRUDOLQNZKHQWKDWEHFRPHVDYDLODEOH,WZDVVXSSRVHGWREH
5HDG\IRU\RXU&(2WRWDNHDFDOOLQWKHPLGGOHRIWKHQLJKWUHDG\WR DYDLODEOHWRGD\EXWWKHUHZHUHVRPHWHFKQLFDOSUREOHPVZKLFK,¶OOWDONLQ
FRPSPHDOVVFUDPEOHWHDPVRIUHSVRUHQJDJHLQPRQWKVRI PRUHGHWDLODERXWEHORZ
FRUUHVSRQGHQFHZLWKWKDWFXVWRPHU"%HFDXVHWKDW¶VDOOLQFOXGHGLQ\RXU
PDUNHWLQJFRVWVQRZLVQ¶WLW" ,WZDVGHILQLWHO\DIDQWDVWLFOHDUQLQJH[SHULHQFH,ZDVXVHGWRVKRRWLQJ
YLGHRVDQGVFUHHQFDVWVIRU<RX7XEHVRLWZDVQ¶WDWRWDO³20*ZKDWDP,
,UHFHQWO\KLUHGVRPHRQHWRGRVRPHUHVHDUFKDQGEUDLQVWRUPLQJ7KH GRLQJ´W\SHRIWKLQJEXWWKHIDFWWKDWWKHUHDUHSHRSOHZDWFKLQJ\RX
ILUVWVWDJHRIZKDWPLJKWEHFRPHTXLWHDELWRIZRUN,ZDVVRUWRIDPD]HG /,9(PDNHVLWVRPXFKPRUHLQWHUHVWLQJDQGKRQHVWO\DORWPRUHIXQ
DWWKHHQGRIWKHVKRUWSURMHFWKHDVNHGPHLI,ZDVKDSS\ZLWKZKDW, WRR
JRWDQG,VDLGµQR¶+HVDLGµVRUU\¶DQGZDONHGDZD\
,I\RXKDYHDQDXGLHQFHEDVHRUHYHQLI\RXGRQ¶WDQG\RXZDQWWR

H[SDQG\RXUDXGLHQFHEDVH,GHILQLWHO\UHFRPPHQGKROGLQJDZHELQDU, ZHELQDUVDQG\RXFDQ¶WUHDOO\H[SHFWHYHU\RQHWRVKRZXS

FDQLPDJLQHLWEHLQJVRPHZKDWVFDU\HVSHFLDOO\IRUWKRVHRI\RXZKRDUH
VK\DQGQDPHOHVVEHKLQG\RXUEORJVDQGZHEVLWHVEXWLW¶VOLNHZKDW7LP 7KHUHDUHWKLQJV\RXFDQGRKRZHYHUWRPD[LPL]HWKHDWWHQGDQFHRI
)HUULVVSUHDFKHVLQWKH+RXU:RUN:HHN\RXKDYHWROHDUQKRZWR \RXUZHELQDUV
SXW\RXUVHOILQXQFRPIRUWDEOHVLWXDWLRQVLI\RXZDQWWRJHWDQ\ZKHUH
ZLWK\RXUEXVLQHVVDQGLQOLIH2UDV,OLNHWRVD\LW±WDNHEROG 0DNHVXUH\RXXVHWKH*R7R:HELQDUHPDLOVHWWLQJVWRVHQG
DFWLRQV QRWLILFDWLRQVEHIRUHWKHZHELQDUVWDUWVWRUHPLQGSHRSOHWKDWLW¶V
FRPLQJXSLQDZHHNDGD\LQDIHZKRXUVHWF6RPHSHRSOHZLOO
%HORZDUHWKLQJVWKDW,OHDUQHGIURPP\ILUVWZHELQDUH[SHULHQFHWKDW MXVWVLPSO\IRUJHWDQGWKHVHHPDLOVZLOOPDNHVXUHWKDWGRHVQ¶W
\RXFDQXVHWREHDKHDGRIWKHJDPHZKHQ\RXGR\RXURZQ KDSSHQ
*R7R:HELQDULV$ZHVRPH ,Q\RXUHPDLOVPDNHVXUHWRWHOOSHRSOHWRDUULYHHDUO\EHFDXVH
VSDFHLVOLPLWHG7KLVZLOOSXWDOLWWOHH[WUDUHPLQGHULQWKHLUKHDGV
,GLGDORWRIUHVHDUFKRQGLIIHUHQWZHELQDUKRVWLQJVHUYLFHVDQG WKDWZLOOPDNHVXUHWKDWWKH\QRWRQO\UHPHPEHUZKHQWKHZHELQDU
*R7R:HELQDUDEUDQFKRI*R7R0HHWLQJFRPKDVHYHU\WKLQJ\RXQHHG LVEXWDOVRWKDWWKH\VKRXOGVKRZXSHDUO\
:KDW¶VQLFHLVWKDWWKH\KDYHDGD\)UHHWULDOVRIRU\RXUILUVWRQH\RX
FDQGRDEVROXWHO\IUHHRUDVPDQ\DV\RXFDQGRGXULQJWKHGD\WULDO 0DNHVXUH\RXDUHFOHDURQZKHQWKHZHELQDULV$OZD\VWHOOSHRSOH
7KDWEHLQJVDLG\RXFDQRQO\KDYHDPD[LPXPRIDWWHQGHHVQRW WKHWLPH]RQHDQGWKHWLPHLQRWKHUWLPH]RQHVDVZHOOVRWKHUHLV
UHJLVWUDQWVSHUZHELQDUDVORQJDV\RXDUHLQWKHIUHHWULDO QRFRQIXVLRQDVWRZKHQLWVWDUWV
*R7R:HELQDULVQ¶WDV$ZHVRPHIRU0$&8VHUV 'RQ¶WSXEOLFL]HEHIRUHKDQGWKDWWKHUHZLOOEHDUHSOD\,ILW¶VZLGHO\
NQRZQWKDWWKHUH¶VDUHSOD\WKHQSHRSOHZRQ¶WVKRZXS$ORQJWKH
$VJRRGDV*R7R:HELQDUZDVIRUWKHZHELQDUKRVWLQJH[SHULHQFHLWGLG VDPHOLQHVLI\RXGRDQQRXQFHWKHUHLVDUHSOD\\RXFDQWHOOSHRSOH
ODFNLPSRUWDQWIHDWXUHVIRUPHDVD0$&XVHU WKDWWKHUHZLOOEHVSHFLDOFRQWHQWMXVWIRUWKHOLYHYLHZLQJWKDWZLOO
QRWEHDYDLODEOHLQWKHUHSOD\
7KHDELOLW\WRSUDFWLFH\RXUZHELQDUEHIRUHLWJRHVOLYH$QGE\
SUDFWLFH,PHDQDFWXDOO\XVLQJWKHZHELQDUKRVWLQJLQWHUIDFHWKDW 0DNH6XUH<RXU$XGLR,V:RUNLQJ&RUUHFWO\
\RX¶GVHHZKHQGRLQJLWOLYHDQG
'XULQJP\OLYHZHELQDUP\YROXPHZDVYHU\ORZIRUWKHILUVWPLQXWHV
7KHDELOLW\WRUHFRUG\RXUZHELQDU RIWKHVHVVLRQ/XFNLO\,KDGWKHULJKWPLQGWRFKHFNWKHFKDWURRP
FRPPHQWVDQGVDZWKDWPDQ\SHRSOHZHUHFRPPHQWLQJWKDWP\YROXPH
,GLGSHUIRUPDFRXSOHRISUDFWLFHUXQVEHIRUHWKHZHELQDUZHQWOLYH ZDVORZ,WXUQHGLWXSDQGWKHQLWZDVEHWWHU
JRLQJWKURXJKWKHFRQWHQWDQGZKDW,ZDVJRLQJWRVKDUHRQP\VFUHHQ
EXW,KDGQRLGHDZKDWWKH*R7R:HELQDULQWHUIDFHZRXOGORRNOLNHRU ,JXHVVWKLVLVWKHRQHJRRGWKLQJDERXWKDYLQJWRUHUHFRUGP\ZHELQDU
KRZLWZRXOGIHHOWRKRVWDZHELQDUXQWLOLWDFWXDOO\KDSSHQHG EHFDXVH,FRXOGPDNHVXUHWKHVRXQGZDVSHUIHFWWKHVHFRQGWLPH
)RUWXQDWHO\LWZDVQ¶WWRRFRPSOLFDWHGWRILJXUHWKLQJVRXWRQFHLWILQDOO\ DURXQGEXWKRQHVWO\WKDWVKRXOGQ¶WKDYHKDSSHQHGLQWKHILUVWSODFH
VWDUWHG
$VN\RXUDXGLHQFHLQWKHEHJLQQLQJRUKROGDSUDFWLFHVHVVLRQLI\RX¶UH
1RWKDYLQJWKHDELOLW\WRUHFRUGWKHZHELQDUVXFNHG,ZDQWHGWRUHFRUG RQD3&ZLWKDIULHQGDQGKDYHWKDWSHUVRQWHOO\RXLIWKHYROXPHLV
LWREYLRXVO\VR,FRXOGKDYHLWIRUDUHSOD\WRVKRZWKRVHRI\RXZKR DGMXVWHGFRUUHFWO\
FRXOGQ¶WFDWFKLWOLYHVR,WULHGWREHVOLFNDQGXVH&DPWDVLDIRU0DFWR
UHFRUGWKHVFUHHQRQP\VLGH 7LPH)OLHV/LNH&UD]\
2IFRXUVH±LWGLGQ¶WZRUN&DPWDVLDRQO\UHFRUGHGWKHILUVWPLQXWHV ,LQLWLDOO\H[SHFWHGWRKDYHPLQXWHVRIFRQWHQWDQGPLQXWHVIRU
DQGWKHQQRWKLQJHOVH,ZDVPLVVLQJDQHQWLUHKRXURIFRQWHQW TXHVWLRQVRQWKHWDLOHQGRIP\ZHELQDU:HOO±DIWHUDQKRXU,KDGQ¶W
HYHQILQLVKHGP\FRQWHQWVR,KDGWRH[WHQGWKHZHELQDUDIHZH[WUD
6RWKHIROORZLQJGD\,UHUHFRUGHGWKHHQWLUHZHELQDUDJDLQDVLILWZHUH PLQXWHV
OLYHEHFDXVH,UHDOL]HKRZLPSRUWDQWLWZDVWRKDYHDUHSOD\WRVKRZ
7+$7LVH[DFWO\ZK\WKHUHSOD\LVGHOD\HGDOLWWOHELWDQG,DSRORJL]HIRU ,PHQWLRQHGWKLVLQWKHYLGHREXWWLPHUHDOO\GRHVIO\E\,ZDVDFWXDOO\
WKDW YHU\VXUSULVHGDQGLWPDGHPHUHWKLQNWKHOHQJWKRIWKHSRGFDVW
HSLVRGHVWKDW,¶OOEHGRLQJLQWKHIXWXUH
1RW$OO5HJLVWHUHG3DUWLFLSDQWV:LOO$FWXDOO\3DUWLFLSDWH
,I\RXFDQUXQWKURXJK\RXUFRQWHQWEHIRUHKDQGWRJHWDQHVWLPDWHRIWKH
,KDGDERXWSHRSOHVLJQHGXSIRUWKHZHELQDUEXWOHVVWKDQKDOI WLPHWKDWLVQHHGHGWRJHWWKURXJKLW,RQO\VNLPPHGWKURXJKP\
DFWXDOO\VKRZHGXSWRWDO$SSDUHQWO\WKLVLVDOZD\VWKHFDVHZLWK SUDFWLFHUXQVDQGQRWHFDUGVVRP\HVWLPDWHGWLPHZDVDOLWWOHRII

,I<RX*HW1HUYRXV3UHVHQW7RD)ULHQG SDUWLFLSDWHDQGEHDSDUWRIWKHGDWDWRR
,¶OODGPLWWKDW,ZDVDOLWWOHQHUYRXVDWILUVW,W¶VKXPDQQDWXUHWRIHHOWKDW ([SHFWWKH8QH[SHFWHG
ZD\ZKHQSUHVHQWLQJWRDJURXSRISHRSOHQRPDWWHULILW¶VRQOLQHRU
RIIOLQH $ORWRIP\ZHELQDUFRQVLVWHGRIJRLQJLQWRWKH0DUNHW6DPXUDLVRIWZDUH
DQGGHPRQVWUDWLQJVRPHRIZKDWLWFDQGRUHODWHGWR.H\ZRUG5HVHDUFK
:KDWPDGHPHIHHOFRPIRUWDEOHZDVDFWXDOO\VHHLQJDFRPPHQWIURPD DQG6(2:KHQGRLQJP\SUDFWLFHUXQVWKHVRIWZDUHUDQVPRRWKO\DQG
EXGG\RIPLQHGXULQJWKHZHELQDUDQGWKHQSUHWHQGLQJWRSUHVHQWWR DOOLQTXLULHVIRUNH\ZRUGLQIRUPDWLRQKDSSHQHGDWOLJKWQLQJVSHHG
RQO\KLP$IWHUWKDW,JRWLQWRDJURRYHDQGIHOWUHDOO\FRPIRUWDEOHZLWK
ZKDW,ZDVGRLQJ,GLGQ¶WZRUU\DERXWPHVVLQJXSDQGEHFDXVHRIWKDW, :HOORIFRXUVHGXULQJWKHZHELQDUWKLQJVZHUHVXSHUVORZ,PHDQOLNH
GLGQ¶WPHVVXSRUIXPEOHTXLWHDVPXFK DVQDLOFOLPELQJDGHJUHHLQFOLQHZLWKWKHZLQGEORZLQJLQLW¶VIDFH
NLQGRIVORZ
,W¶VHDVLHUWRXVHWKLVWHFKQLTXHZKHQKRVWLQJDZHELQDUEHFDXVH\RX
FDQ¶WDFWXDOO\VHHDQHQWLUHJURXSRISHRSOHLQIURQWRI\RX6RLI\RXJHW 2ND\PD\EHLWZDVQ¶W7+$7VORZEXWLWVHHPHGOLNHLWHVSHFLDOO\ZLWK
QHUYRXVSUHVHQWOLNH\RXSUHVHQWLQJWRDIULHQGDQG\RX¶OOEHDOOJRRG SHRSOHZDWFKLQJLWOLYH7KLVZDVXQH[SHFWHGDQG,ODWHUIRXQGRXW
WKDWWKHUHDVRQWKLVKDSSHQHGZDVEHFDXVHMXVWEHLQJRQWKHZHELQDU
,I<RX&DQ3UHSDUHD3')3ULQWRXW$KHDGRI7LPH LWVHOIZDVHDWLQJXSEDQGZLWKDQGVORZLQJHYHU\WKLQJHOVHGRZQ
,GLGQRWGRWKLVEXWDIWHUWKHZHELQDU,ZDVUHDGLQJRQWLSVWRKHOS 7KDWEHLQJVDLGDOWKRXJKWKLVZDVQ¶WSODQQHGIRU,ZDVQ¶WSKDVHG,
LPSURYHP\VNLOOVDQGFDPHXSRQWKLVRQHKHUHZKLFK,ZDQWHGWRVKDUH NQHZWKLQJVOLNHWKLVKDSSHQDOORIWKHWLPHDQG\RXFDQ¶WJHWSKDVHG
ZLWK\RX HVSHFLDOO\OLYHRQD:HELQDU<RXMXVWKDYHWRUROOZLWKWKHSXQFKHV
%HIRUHWKHZHELQDUEHJLQVSUHSDUHD3')ILOHWKDWLVPD\EHMXVWDQ 6RGXULQJWKHORDGLQJWLPHV,¶GWDNHWKHRSSRUWXQLW\WRJLYHSHRSOH
RXWOLQHRIZKDW\RX¶UHJRLQJWREHWDONLQJDERXW,WFRXOGMXVWEHDRQH LQIRUPDWLRQDERXWZKDWZDVKDSSHQLQJDQGZKDWZDVFRPLQJXS$OVR,
SDJHRXWOLQHLWVHOIRUDFRS\RIVRPHRIWKHVOLGHV\RX¶UHJRLQJWRVKRZ ILOOHGSHRSOHLQRQVRPHRIWKHTXHVWLRQVWKH\KDGDQGUHDGVRPHRIWKH
FRPPHQWVLQWKHFKDWDVZHOO
7KH3')GRHVDFRXSOHRIFRROWKLQJV
([SHFWWKHXQH[SHFWHG
,I\RXHPDLOLWRXWEHIRUHKDQGSHRSOHZLOOSULQWLWRXWDQGKDYHD
WDQJLEOHSK\VLFDOUHPLQGHURIZKHQ\RXUZHELQDULV2EYLRXVO\ -XVW'R,WDQG+DYH)XQ
\RX¶OOZDQWWRLQFOXGHWKHQDPHRI\RXUZHELQDUWKHWLPHDQGGDWH
RQWKH3') ,I\RX¶UHWKLQNLQJDERXWGRLQJDZHELQDUGRQ¶WWKLQNDQ\PRUH±MXVWGR
LW*RWR*R7R:HELQDUJHW\RXUIUHHWULDODQGJHWSHRSOHRQ\RXUILUVW
'XULQJWKHZHELQDUSHRSOHZLOOSD\PRUHDWWHQWLRQWRZKDW\RX ZHELQDU([SDQG\RXUEUDQGEXLOGDXWKRULW\DQGVKRZ\RXUVHOIDVDQ
KDYHWRVD\DVWKH\IROORZDORQJWKHRXWOLQHRUVOLGHVDV\RX H[SHUWLQZKDWHYHUQLFKH\RX¶UHLQ/LNH,PHQWLRQHGHDUOLHUSURJUHVV
SUHVHQW7KH\FDQWDNHQRWHVDQGZLOORYHUDOOKDYHDEHWWHUOHDUQLQJ GRHVQ¶WKDSSHQXQWLOEROGDFWLRQVDUHWDNHQVRMXVWGRLW
H[SHULHQFHDVDUHVXOW
$QGODVWO\KDYHIXQZLWKLW'RQ¶WVWUHVV\RXUVHOIRXWRYHUWKHXSFRPLQJ
)RUP\QH[WZHELQDU,SODQRQKDYLQJD3')SULQWRXW±IRUVXUH ZHELQDUWKDW\RXKDYHSODQQHG7KLQNRILWDVDQRSSRUWXQLW\WRVKDUH
\RXUNQRZOHGJHZLWKRWKHUVDQGQRWDVVRPHWKLQJWKDW\RXMXVWKDYHWR
*HW<RXU$XGLHQFH,QYROYHG JHWRYHUZLWK
$JDLQWKLVLVDQRWKHUWLS,OHDUQHG$)7(5P\ZHELQDU ,ZLVK\RXWKHEHVWRIOXFNRQ\RXUXSFRPLQJZHELQDUV3OHDVHVHQGPHD
UHJLVWUDWLRQOLQNDQG,¶OOGRP\EHVWWRPDNHLW0RUHZHELQDUVWRFRPH
7KHWULFNLVWRJHW\RXUDXGLHQFHLQYROYHGVRWKDWWKH\¶OOEHPRUH IURPPHEHFDXVHSUDFWLFHPDNHVSHUIHFW
DWWHQWLYHDQGKDYHDEHWWHUOHDUQLQJH[SHULHQFHWRR
$JDLQEHVXUHWRIROORZPHRQ7ZLWWHURU)DFHERRNIRUWKHOLQNIRUWKH
2QHZD\WRGRWKLVLVWRVLPSO\DVNTXHVWLRQVDQGZDLWIRUSHRSOH¶V UHSOD\ZKHQLWILQDOO\JRHVOLYHRUMXVWWRVD\KHOORWRR
DQVZHUV0DQ\SHRSOHDUHKDSS\WRW\SHLQUHVSRQVHVLQWKHFKDWER[LQ
*R7R:HELQDU5HDGWKHPRIIDQGSHRSOHJHWH[FLWHGZKHQWKH\KHDU 7KDQNVDJDLQIRUDOORI\RXUVXSSRUWDQGKDYHDZRQGHUIXOZHHNHQG
WKHLUDQVZHUVUHDGRIIOLYHRQWKHZHELQDU &KHHUV
$OVR*R7R:HELQDUKDVDSROOLQJIHDWXUH'XULQJWKHZHELQDU\RXFDQ
KDYHSHRSOHDQVZHUSROOVZKLFKFDQEHDFRROZD\WRSUHVHQWFHUWDLQ ±±±±±±±
W\SHVRILQIRUPDWLRQWRWKHDXGLHQFHDVDZKROHZKLOHJHWWLQJWKHPWR $VDOZD\V,MXVWZDQWHGWRWKDQN\RXIRUVXEVFULELQJ7KLVEORJLVD

VXFFHVVEHFDXVHRI\RXDQG\RXUVXSSRUW+HUH¶VWR\RXURQOLQH RQWKHEORFN"´
VXFFHVV
,QH[FKDQJHIRUIRFXVHGZRUN²RIWHQDWQLJKWDQGRQ
%HFRPHD)DQRIWKH6PDUW3DVVLYH,QFRPH%ORJRQ)DFHERRNDQGMRLQ ZHHNHQGV²WKH\UHFHLYHODSWRSV%ODFN%HUU\VDD
WKHFRQYHUVDWLRQ PRQWKOLYLQJVWLSHQGDQGKDQGVRQWUDLQLQJIURP%L]GRP8¶V
ILYHGHGLFDWHGVWDIIPHPEHUV
7KDQN\RXVRPXFK
%L]GRP8KDVEHHQOLNHQHGWR1%&¶VKLWVKRZ³7KH
7KLQJV,/HDUQHG)URP0\)LUVW:HELQDU $SSUHQWLFHÉHFDXVHVWXGHQWVDUHH[SHFWHGWRSURYH
WKHPVHOYHVLQUHDOZRUOGVLWXDWLRQV7RWHDFKVDOHVDQG
PDUNHWLQJ%L]GRP8HQWUHSUHQHXUVPXVWVHOOPHPEHUVKLSV
%86,1(6623325781,7,(6:(%/2* WRWKH'HWURLW=RR7KH\HQJDJHLQ³SDLQVWRUPLQJ´H[HUFLVHV
LGHQWLI\LQJGDLO\KDUGVKLSVWKDWPLJKWEHDOOHYLDWHGE\DQHZ
(QWUHSUHQHXUV7U\LQJ7R5HYLYH SURGXFWRUVHUYLFH
$&LW\ ³:HZDQWHGSHRSOHWREHOLYLQJDQGEUHDWKLQJWKHLU
-8130 EXVLQHVVHV´VDLG5RVV6DQGHUVH[HFXWLYHGLUHFWRURI%L]GRP
8³7KH\OHDUQE\GRLQJ´
%86,1(6623325781,7,(6:(%/2*
6KDUH+DSS\
-8130
$FFRUGLQJWR7KH1HZ<RUN7LPHV%L]GRP8LVDQLQWHQVHERRWFDPSIRU
DVSLULQJHQWUHSUHQHXUVZKRDLPWRVWDUWKLJKJURZWKEXVLQHVVHVLQ
'HWURLW,WLVWKHEUDLQFKLOGRI'DQ*LOEHUWD0RWRU&LW\QDWLYHZKRLV
IRXQGHUDQGFKDLUPDQRIWKHRQOLQHPRUWJDJHOHQGHU4XLFNHQ/RDQV
:KLOHLQVWDQWO\JUDWLI\LQJEX\LQJLFHFUHDPIURPDYHQGLQJPDFKLQH
%L]GRP8KRZHYHULVXQLTXHLQLWVIRFXVRQDVLQJOHFLW\ LVQ¶WDVIXQDVLWFRXOGEHVD\VWUHQGVSRWWHU6SULQJZLVH
³'HWURLWLVFRPSOHWHO\PLVVLQJDQHQWUHSUHQHXULDOHFRV\VWHP´
VDLG%R)LVKEDFNZKRLVYLFHSUHVLGHQWIRUHQWUHSUHQHXUVKLS :KLFKLVZK\6DSLHQW1LWURDQG8QLOHYHUFUHDWHGWKHZRUOG¶V
DWWKH(ZLQJ0DULRQ.DXIIPDQ)RXQGDWLRQZKLFKJDYH ILUVWVPLOHDFWLYDWHGLFHFUHDPYHQGLQJPDFKLQH
%L]GRP8DJUDQWLQ
7KHXQGHUO\LQJWHFKQRORJ\LVVRSKLVWLFDWHGEXWWKHFRQFHSWLV
)RXQGHGLQ%L]GRP8RSHUDWHVRQWKHSULQFLSOHWKDW VLPSOHFRQVXPHUVZDONXSWRWKHPDFKLQHVPLOHDQGDUH
HQWUHSUHQHXUVDUHERUQQRWPDGH,WVSURJUDPOHDGHUVGRQRW UHZDUGHGZLWKDIUR]HQWUHDW
QHFHVVDULO\EHOLHYHHQWUHSUHQHXUVKLSFDQEHWDXJKW,QVWHDG
DQHVVHQWLDOSDUWRI%L]GRP8¶VMRELVWRXQHDUWKFDQGLGDWHV :KHQLWVPRWLRQGHWHFWRUVVHQVHVRPHRQHLVQHDUWKH
ZLWKDGLVWLQFWFRPELQDWLRQRIYLVLRQDPELWLRQGULYHDQGULVN PDFKLQHEHFNRQVWKHPWRFRPHFORVHUDQGLQWHUDFW
WROHUDQFHDQGWKHQPROGWKHPLQWREXVLQHVVRZQHUV
8VLQJIDFLDOUHFRJQLWLRQWHFKQRORJ\LWFDQWKHQUHFRJQL]HD
³:HGLJGHHSE\UHYLHZLQJWKHLUSDVWDFWLYLWLHVDQGEHKDYLRUV SHUVRQ¶VDJHJHQGHUDQGHPRWLRQDQGPHDVXUHWKHLUVPLOH
WRVHHLIWKH\ZHUHRIWHQGUDZQWRZDUGHQWUHSUHQHXULDO XVLQJD³VPLOHRPHWHU´,IWKHLUJULQLVZLGHHQRXJKWKH\JHW
SXUVXLWV´*LOEHUWZURWHLQDQHPDLOPHVVDJH³:DVWKLVWKH IUHHLFHFUHDP8VHUVFDQDOVRRSWWRKDYHDSLFWXUHRIWKHLU
\HDUROGNLGZKRKDGWKHPRVWVXFFHVVIXOOHPRQDGHVWDQG KDSS\VHOIXSORDGHGWR)DFHERRNZKLFKWLHVLQSHUIHFWO\ZLWK

8QLOHYHU¶VEUDQGPHVVDJH³VKDUHKDSS\´ FRPPXQLFDWLRQV´
&XUUHQWO\EHLQJVKRZFDVHGDWWKH&DQQHV/LRQV,QWHUQDWLRQDO ,GRQ¶WNQRZZK\WKHGHIDXOWVHWWLQJRQPRVWGLJLWDO
$GYHUWLVLQJ)HVWLYDOWKHVPLOHDFWLYDWHGLFHFUHDPYHQGLQJ FRPPXQLFDWLRQVLV³VDYHVRWKHODZ\HUVFDQILQGLWODWHU´,
PDFKLQHZLOOEHUROOHGRXWDWKLJKWUDIILFORFDWLRQVDFURVVWKH JUHZXSZDWFKLQJ³0LVVLRQ,PSRVVLEOH´WKH&%6VHULHVWKDW
JOREHRYHUWKHQH[WPRQWKV UDQIURPWR0DUFK,WZRXOGRIWHQEHJLQZLWKWDSH
UHFRUGHGLQVWUXFWLRQV³*RRGPRUQLQJ0U3KHOSV<RXU
(GLWRU¶V1RWH<RXFRXOGEX\VHYHUDORIWKHVHPDFKLQHVDQG PLVVLRQVKRXOG\RXGHFLGHWRDFFHSW«´
UHQWWKHPRXWWRELUWKGD\SDUWLHVZHGGLQJVFRUSRUDWH
JDWKHULQJVHWF$QLFHVKDUHKDSS\EL] $IWHUGHWDLOLQJWKHPLVVLRQWKHUHFRUGHGYRLFHZRXOGVD\
³7KLVWDSHZLOOVHOIGHVWUXFWLQILYHVHFRQGV´$QGWKHQFDPHD
3KRWRE\6DSLHQW1LWUR VXUJHRIVPRNHGHVWUR\LQJDOOHYLGHQFHWKDWDQH[FKDQJHRI
LQIRUPDWLRQHYHQWRRNSODFH
6RZK\FDQ¶WZHGRWKLVZLWKHPDLOV"
,PDJHIURP9DSRU6WUHDP
%86,1(6623325781,7,(6:(%/2*
7KLV3RVW:LOO6HOI'HVWUXFW,Q«
-8130
%86,1(6623325781,7,(6:(%/2*
(XUHND*UHDW6XPPHU5HDGV
-8130
:KLOHUHDGLQJ%ORRGRQWKH6WUHHW7KH6HQVDWLRQDO,QVLGH6WRU\RI+RZ
:DOO6WUHHW$QDO\VWV'XSHGD*HQHUDWLRQRI,QYHVWRUV-RVHSK&ROOLQV
KDGDXQLTXHWKRXJKWUHSRUWV'HQYHU3RVWFRP
³,ZDVUHDGLQJ&KDUOLH¶VERRNDQG,WKRXJKWLWZDVYHU\XQIDLU
WKDW(OLRW6SLW]HUFRXOGMXVWZDONLQWRFRPSDQLHVDQGGHPDQG
WKHLUHPDLO´&ROOLQVUHFDOOHG
6SLW]HUZDV1HZ<RUN¶V$WWRUQH\*HQHUDOZKHQWKH,QWHUQHW :LOOLDP5RVHQDW7KH:DOO6WUHHW-RXUQDOKDLOVWKHVHERRNVDERXW
EXVWHGDQGKHH[SRVHGDVWHDG\VWUHDPRIHPEDUUDVVLQJ LQYHQWLRQV
HPDLOVIURP:DOO6WUHHWFKHDWV
/RQJLWXGH%\'DYD6REHO
:KDWWKHZRUOGUHDOO\QHHGHG&ROOLQVGHFLGHGDIWHUUHDGLQJ 7KHVWRU\RIWKHILUVWPDULQHFKURQRPHWHULQYHQWHGE\WKHVHOIWDXJKW
*DVSDULQR¶VERRNZHUHHPDLOVWKDWFRXOGQ¶WEHFRSLHG %ULWLVKFORFNPDNHU-RKQ+DUULVRQKDGDUHPDUNDEOHQXPEHURI
IRUZDUGHGRUVDYHG7KDWZD\SHRSOHFRXOGVSHDNFDQGLGO\ GUDPDWLFHOHPHQWV7KDQNVWRWKH/RQJLWXGH$FWRIWKH
ZLWKRXWZRUU\LQJDERXWRYHUUHDFKLQJVQRRSVOLNH6SLW]HU SURWDJRQLVW¶VJRDO²DSUL]HIRUDPHWKRGRIGHWHUPLQLQJ
ORQJLWXGHWRZLWKLQQDXWLFDOPLOHV²FRXOGQRWKDYHEHHQFOHDUHU(YHQ
&ROOLQVD1RUWKZHVWHUQ8QLYHUVLW\JUDGXDWHZDV PRUHWKHDWULFDOO\+DUULVRQZDVDOHJLWLPDWH³ORQHJHQLXV´ZKRVSHQW
VWUXJJOLQJWREXLOGDFKDLQRIJDVVWDWLRQVDPLGULVLQJUHDO VROLWDU\\HDUVRQDVLQJOHYHUVLRQRIDFORFNDFFXUDWHHQRXJKWRFRPSDUH
HVWDWHDQGJDVROLQHSULFHV+HVDZDEULJKWHUIXWXUHLQ ORFDOQRRQDWVHDZLWKQRRQEDFNKRPH$QGLQWKHGHYLRXV1HYLO
GHVLJQLQJGLVDSSHDULQJHPDLOV7KHUHVXOWLV9DSRU6WUHDP 0DVNHO\QHDVWURQRPHUUR\DODQGFKDPSLRQRIDFRPSHWLQJPHWKRGRI
HOHFWURQLFFRQYHUVDWLRQVRIWZDUH FDOFXODWLQJORQJLWXGHWKHVWRU\KDGDSHUIHFWYLOODLQ7RWKLVUDZPDWHULDO
'DYD6REHODGGHGDVFXOSWRU¶VVHQVHIRUWKHSK\VLFDOLW\RIWKLQJV²IRUWKH
³,W¶VMXVWDQHZIRUPRILQVWDQWPHVVDJLQJRUHPDLO´&ROOLQV VHOIOXEULFDWLQJJHDUVWKDW+DUULVRQFDUYHGIURPFORVHJUDLQHG
VDLG³:HOLNHWRWKLQNRILWDVWKHQDWXUDOHYROXWLRQRIRQOLQH ZRRG²DQGHQRXJKSRHWLFLPDJLQDWLRQWRGHVFULEH++DUULVRQ¶VILUVW

FKURQRPHWHUDV³DPRGHOVKLSHVFDSHGIURPLWVERWWOHDIORDWRQWKHVHD
RIWLPH´
7R&RQTXHUWKH$LU%\-DPHV7RELQ
7KHVWRU\RIWKHRQHWLPHELF\FOHVKRSRZQHUVIURP'D\WRQ2KLRLQ
$PHULFD¶VSHUFDSLWDSDWHQWOHDGHULVVLPXOWDQHRXVO\DEULOOLDQW
SDQRUDPDRIHDUO\WKFHQWXU\$PHULFDDQGDQXQIRUJHWWDEOHSRUWUDLWRI
:LOEXU:ULJKW%RWK:LOEXUDQGKLVEURWKHU2UYLOOHZHUHH[HPSODUVRI
JUDFHXQGHUSUHVVXUHVKRZLQJKLJKLQWHOOLJHQFHPRGHVW\DQG
GHWHUPLQDWLRQZLWKRXWIRROKDUGLQHVV²DOOWKHZKLOHFRPSHWLQJDJDLQVW
HYHU\RQHIURP$OH[DQGHU*UDKDP%HOOWRWKHPRWRUF\FOHUDFLQJ
FKDPSLRQ*OHQQ&XUWLVVWREHWKHILUVWDORIW%XW:LOEXULVFOHDUO\WKH
VWDU+LVGHFLVLRQWRPDVWHUDLUERUQHVWDELOLW\DQGEDODQFHEHIRUH
SRZHU²WRFUHDWHWKHRSWLPDOZLQJDQGOHWWKHHQJLQHWDNHFDUHRI
LWVHOI²JLYHV-DPHV7RELQ¶VWDOHDQHQRUPRXVO\VDWLVI\LQJVWUXFWXUHDV
ZHOODVDQHQWLUHO\DSWPHWDSKRUIRU:LOEXU:ULJKW¶VOLIH
7KLVGHVLJQZDVRQHRIJROGPHGDOZLQQQHUVDWWKH,QWHUQDWLRQDO
'HVLJQ([FHOOHQFH$ZDUGV
7KH6RXORID1HZ0DFKLQH%\7UDF\.LGGHU
7KHKRO\JUDLOIRU7RP:HVWDQGKLVWHDPRIFRPSXWHUHQJLQHHUVZDVD
&DQ\RXILJXUHRXWZKDWLWGRHV"
PDFKLQHWKDWZDVVPDOOHUDQGQLPEOHUWKDQDPDLQIUDPHEXWVWLOODEOHWR
SURFHVVELWVRILQIRUPDWLRQDVXSHUPLQLFRPSXWHU7UDF\.LGGHU
,¶OOJLYH\RXDKLQWLW¶VFDOOHGWKH2QH'RZQ
FKURQLFOHGWKHLUSDLQVWDNLQJTXHVWLQRQHRIWKHPRUHLPSUREDEOHEHVW
VHOOHUVHYHU$ERRNDERXWZULWLQJVRIWZDUHFRGH"%XWHYHQQRZ³7KH
3XW\RXUJXHVVLQWKHFRPPHQWVDQG,¶OOUHYHDOWKHFRUUHFWDQVZHURQ
6RXORID1HZ0DFKLQH´LVFDSDEOHRILQGXFLQJLQUHDGHUVWKHVDPH
)ULGD\
VOHHSOHVVQLJKWVWKDWWKHSURMHFWGHPDQGHGRIWKHWZHQW\VRPHWKLQJJHHNV
ZKRGHVLJQHGDQGEXLOWWKHPDFKLQHWKH\GXEEHGWKH(DJOH³7KHUHDO
3KRWRE\'6.,6',QWHUQDWLRQDO6FKRRORI'HVLJQ
JDPHLVSLQEDOO´:HVWWHOOVWKHP³<RXZLQRQHJDPH\RXJHWWRSOD\
DQRWKHU\RXEXLOGWKLVPDFKLQH\RXJHWWREXLOGDQRWKHU´
3KRWRE\:DONHU &RPSDQ\6LPRQ 6FKXVWHU%DFN%D\%RRNV
%86,1(6623325781,7,(6:(%/2*
2SWLFDO'HVLJQHU6XFFHHGV:LWK
%86,1(6623325781,7,(6:(%/2*
1HZ7HOHVFRSH
¶V%HVW'HVLJQHG -8130
3URGXFWV«
-8130
-RXUQDO
/LIHORQJDVWURQRPHU3HWHU:LVHRI'XQGRQDOG$YHQXH
$EHUJHOHFROOHFWHGDFRYHWHGJROGPHGDODWWKHWK*HQHYD
,QYHQWLRQV)DLULQ6ZLW]HUODQGDIWHUKLVSURGXFWVWRRGRXW

IURPHQWULHVDFURVVWKHZRUOG GLDORJXHFDQEHHVWDEOLVKHG7KH\QHHGDIDFHDQGYRLFHWKDWFDQIXOO\
H[SUHVVWKHLUPXOWLIDFHWHGSURGXFWRUVHUYLFHRIIHULQJV,QVKRUWEUDQGV
7KHRSWLFDOGHVLJQHUZKRKDVEHHQPDNLQJWHOHVFRSHVIRU QHHGWRHPXODWHSHRSOH
\HDUVGUHZXSRQKLVLQGHSWKNQRZOHGJHRIWKHLQGXVWU\WR
GHVLJQWKHUHIUDFWLQJWHOHVFRSHWKDWZLOOQRZEHVROG +RQGDDQG)RUGKDYHGRQHDQLFHMREKXPDQL]LQJWKHLUEUDQGVDV
FRPPHUFLDOO\$IWHUILQGLQJWKHPDUNHWOLPLWHGIRUKLV HYLGHQFHGE\WKHLUUHVSHFWLYH7ZLWWHUKDQGOHV#DOLFLDBDWB+RQGDDQG
RULJLQDOSODQIRUDQHLJKWLQFKWHOHVFRSHKHZRUNHGRQWKH #6FRWW0RQW\7KHVHSOD\HUVDUHOHDUQLQJRXWKRZWREXLOGSHUVRQDVRXW
VXFFHVVIXOPPGHVLJQWKDWLVH[SHFWHGWRFRVWRQDYHUDJH RIZHOONQRZQEUDQGVWKDWDUHDSSURDFKDEOHGLVWLQFWDQGZDUP
MXVWKDOIRIPDUNHWOHDGHUV
%RWK$OLFLDDQG6FRWWKDYHPDVWHUHGWKHDUWRIVHDPOHVVO\LQWHJUDWLQJ
+HVDLG³,WZDVDWUHPHQGRXVDFKLHYHPHQWWRZLQDJROG WKHLUSHUVRQDORSLQLRQVZLWKIDFWXDOSURGXFWLQIRUPDWLRQWRVHUYHDVD
PHGDODQGWRQRZEHDEOHWRWDNHLWIRUZDUGWRWXUQWKLVLQWR KXPDQHOHPHQWWRWKHKLVWRULFDOO\EXUHDXFUDWLFDXWRPRWLYHLQGXVWU\
SURGXFWLRQIRUVDOHV $FFHVVLELOLW\KXPDQLW\DQGUHVSRQVLYHQHVVDUHQRORQJHUWUDLWVSHRSOH
H[SHFWIURPMXVWDWUXVWHGIULHQGLWLVVRPHWKLQJWKH\GHPDQGIURPD
³7KHUHKDVEHHQDORWRILQWHUHVWLQWKHSURGXFWDQGLWZDV WUXVWHGEUDQG
YHU\SOHDVLQJ,KDYHDOZD\VEHHQLQWHUHVWHGLQDVWURQRP\DQG
LWZDVDFDVHRIORRNLQJWRLPSURYHRQZKDWZDVDOUHDG\WKHUH &OLFNKHUHWRUHDGWKHIXOODUWLFOHDQGOHDUQKRZWRPRUSK\RXUEUDQG
LQWRDSHUVRQ
3KRWRIURP5\DQ:LFN
%86,1(6623325781,7,(6:(%/2*
7LSSLQJ&DUGV)RU7UDYHOOHUV
-8130
*52:1837+,1.,1*
%UDQGVDV3HRSOH3HRSOHDV
%UDQGV
-8130
7KLVDUWLFOHILUVWDSSHDUHGDVD35202;WUD(GLWRU¶V3LFNDW
7UHQGVSRWWHU6SULQJZLVHVD\VFDVKPD\EHLQFUHDVLQJO\UDUHDVDPHWKRG
SURPRPDJD]LQHFRP
RISD\PHQWLQPRVWWUDQVDFWLRQVEXWWLSSLQJUHPDLQVRQHRIWKRVHDUHDV
ZKHUHLW¶VVWLOORIWHQWKHVWDQGDUG7KHUHLQOLHVDSUREOHPIRU
7KHUHLVDFXOWXUDOLGHQWLW\FULVLVRFFXUULQJDPRQJFRQVXPHUVDQG
LQWHUQDWLRQDOWUDYHOOHUVZKRPXVWMXJJOHPXOWLSOHFXUUHQFLHV:KHUH¶V
EUDQGVZLWKHDFKZDQWLQJWRHPXODWHWKHRWKHU7KHE\SURGXFWRIWKLV
0\7LSKRZHYHUDLPVWRRIIHUDVROXWLRQ
VKDUHGDGPLUDWLRQLVDQH[SRQHQWLDORSSRUWXQLW\IRUZRUGRIPRXWKDQG
VRFLDOPHGLDPDUNHWHUVWRSOD\DFHQWUDOUROHLQWKHIDFLOLWDWLRQRIWKLV
:DLWVWDIIDQGEDUWHQGHUVVKRXOGDOZD\VEHWLSSHGGLUHFWO\RQ
RQJRLQJVKLIW
WKHELOO:KHUH¶V0\7LSVWUHVVHV5DWKHULW¶VIRFXVLQJLWV
FDVKOHVVDOWHUQDWLYHRQWUDYHOOHUVZKRQHHGWRWLSGRRUPHQ
%UDQGVDV3HRSOH
EHOOKRSVKRXVHNHHSHUVYDOHWVDQGFRQFLHUJHV
%UDQGVDUHILQDOO\VWDUWLQJWRUHDOL]HWKDWWKH\FDQQRORQJHUDFWOLNHWKH
IDFHOHVVORJRVWKH\RQFHSRUWUD\HG7KH\QRZQHHGWRHVWDEOLVKDSHUVRQD
+RZLWZRUNV"8VHUVEHJLQE\SD\LQJDQDQQXDO86'
WKDWLVDSSURDFKDEOHDQGRSLQLRQDWHG%UDQGVQHHGWRVWULYHIRU
PHPEHUVKLSIHHZKLFKHQWLWOHVWKHPWRWLS
UHODWLRQVKLSVZLWKFRQVXPHUVDQGOHDUQWROLVWHQVRWKDWDWZRZD\
FDUGV²DGGLWLRQDORQHVDUHFHQWVHDFK7KHQZKHQWKH\

WUDYHOWKH\FDQKDQGRXWWKRVHFDUGVLQVWHDGRIFDVK(DFK 3HRSOHWDONDERXWQLFKHV´KHVDLG³µ2K,GHDOZLWKWKLVRU
FDUGIHDWXUHVDXQLTXHPHPEHU,'QXPEHUZKLFKFDQEH WKDW¶EXW\RX¶YHUHDOO\JRWWRGULOOGRZQXQWLO\RX¶YHJRWD
XVHGE\WKHUHFLSLHQWWRUHTXHVWDWLSRQOLQHWKHUHWKH\HQWHU SUHWW\VPDOODUHDWKDW\RXFDQGRPLQDWHWKDW\RXFDQEHFRPH
WKHLUQDPHDQG3D\SDOHPDLODGGUHVVDVZHOODVDVXJJHVWHG DQDGYRFDWHIRUWKDW\RXFDQEHFRPHWKHJRWRSHUVRQIRU´
WLSDPRXQW
+HVDLGWKDWLIKHZHUHWRVWDUWDODXQGU\VRDSEXVLQHVVIRU
2QFHWKDWKDSSHQV:KHUH¶V0\7LSHPDLOVWKHWLSUHTXHVWWR LQVWDQFHLWZRXOGQ¶WEHRQHWKDWFRPSHWHVDJDLQVWDQELJ
WKHPHPEHUZKRFDQSD\WKHUHTXHVWHGRURWKHUDPRXQW FRPSDQ\OLNH7LGHZLWKLWVGHHSSRFNHWV
ZLWKDFUHGLWFDUGRU3D\SDODFFRXQW:KHUH¶V0\7LSWKHQ
IRUZDUGVWKHIXQGVWRWKHSHUVRQZKRUHTXHVWHGWKHWLS$OO ³6R,¶PJRLQJWRGRODXQGU\VRDSWKDWJHWVWKHD[OHJUHDVH
WLSVDQGWLSUHTXHVWVDUHUHYLHZHGURXWHGDQGSURFHVVHGE\ IURPWUDLQD[OHVRXWRIWKHXQLIRUPVWKDWWKHWUDLQD[OH
KDQGWRNHHSXQZDUUDQWHGWLSUHTXHVWVWRDPLQLPXPDWWKH PHFKDQLFVZHDU<RXVHHKRZQLFKHLWLV"´
VDPHWLPHDOOPHPEHUVPXVWPDLQWDLQDQH[WUHPHO\KLJK
UDWLRRIWLSVSDLGWRWLSVUHTXHVWHGWRHQVXUHWKH\GRQ¶WKDQG ³1RZ,FDQPDUNHWWRWKHPQRZ,FDQJHWLQWRWKHLUWUDGH
RXWFDUGVDVDZD\WRDYRLGSD\LQJDWLS MRXUQDOVQRZ,FDQEHDWWKHLUWUDGHVKRZVQRZ,FDQEHFRPH
VLJQLILFDQWLQWKHLUPLQGV²,FDQRZQVRPHPHQWDOUHDO
0HPEHUVKLSLQ)ORULGDEDVHG:KHUH¶V0\7LSLVFXUUHQWO\E\ HVWDWH´
LQYLWDWLRQRQO\
³7KDW¶VWKHW\SHRIPLFURQLFKHPDUNHWLQJWKDWZHVWLOOGRQ¶W
+RZDERXWFUHDWLQJDEUDQGDEOHYHUVLRQWKDWKRWHOVFDQJLYH VHHILQDQFLDODGYLVHUVUHDOO\HPEUDFLQJZKLFKZHWKLQNLV
JXHVWVIRULQKRXVHRUORFDOWLSSLQJZLWKSD\PHQWVVLPSO\ FUXFLDOLQWKHDFTXLVLWLRQRIKLJKQHWZRUWKFOLHQWV´
DGGHGWRWKHILQDOWDE«"
3KRWRE\EFYLQHOLYLQJ
3KRWRE\:KHUH¶V0\7LS
%86,1(6623325781,7,(6:(%/2*
$LP)RU7KH'RXJKQXW+ROH
-81$0
$FFRUGLQJWRDVWRU\DW5HXWHUVWDUJHWLQJDYHU\VSHFLILFDXGLHQFHPDNHV
PDUNHWLQJWKDWPXFKHDVLHUVDLG0LFKDHO3KLOLEULFNDGLUHFWRURIZHDOWK
PDQDJHPHQWDQGDVVRFLDWHSRUWIROLRPDQDJHUDW5LFKDUGVRQ*03ZKR
PDLQO\GHDOVZLWKGHQWDOSURIHVVLRQDOV

-XQH
7RGD\·V7DEEORLG
%86,1(6623325781,7,(6:(%/2* ZKRDUHOHDVWOLNHO\WRSD\WKHLUELOOV
$QRWKHU%ORZ7R6PDOO%L] 3KRWRE\1,26+
&UHGLW
-81$0
'$01,:,6+,¶'7+28*+72)7+$7
+DSSLQHVVLVWKHELOOLRQGROODU
VHFUHW
-81$0
:K\ZRXOG\RXEX\IURP=DSSRVFRP"7KH\VHOOIXOOSULFHH[SHQVLYH
VKRHVWKDW\RXFDQJHWDQ\ZKHUHHOVH
%HFDXVH«
7KH\PDNHXVIDOOLQORYHZLWKDPD]LQJFDULQJVHUYLFH
7KH\¶OOWDONWRXVLQWKHPLGGOHRIWKHQLJKWDERXWRXUZHLUGIHHWDQG
:LWKUHYHQXHVDWKLVVL[HPSOR\HHFRQVWUXFWLRQEXVLQHVVRQWUDFNWR EXQLRQV
MXPSSHUFHQWWKLV\HDUWRPLOOLRQ*DU\'HVLOHWVWKRXJKWKH¶GEH
DEOHWRJHWFUHGLWSUHWW\HDVLO\ 7KH\KXPRURXUIHWLVKDQGOHWXVRUGHUVKRHVZHMXVWZDQWWRIRQGOH
IRUDIHZPRPHQWV
$FFRUGLQJWR%ORRPEHUJ%XVLQHVVZHHNDVLWWXUQVRXWVHFXULQJ
ILQDQFLQJLVKDUGHUWKDQKHH[SHFWHGEHFDXVHKLVWUDGH $QGWKH\DOZD\VWDNHRXUUHWXUQVEHFDXVHWKH\DOZD\VIRUJLYHXV
FUHGLWRUV²VXSSOLHUVWKDWOHWFRPSDQLHVEX\QRZDQGSD\ODWHU²KDYH ZKHQZHPDNHDPLVWDNH
EHHQVFUXWLQL]LQJKLV%ULVWRZ9DEXVLQHVVPRUHFORVHO\
+DSS\FXVWRPHUVDUH\RXUJUHDWHVWDGYHUWLVHUV
2XUPLVWDNHZDVEHOLHYLQJWKHK\SHDERXWQRWZRUU\LQJDERXW
\RXUGHEWDVORQJDV\RXFDQVHUYLFHLW´'HVLOHWVVD\V³7KDW¶V 7KDW¶VKRZ=DSSRVVROGELOOLRQZRUWKRIVKRHVODVW\HDU
DEXQFKRIKRRH\XQOHVV\RX¶UHDELJFRPSDQ\ZLWKDORWRI
UHVRXUFHV´ 7RQ\+VLHK&(2RI=DSSRVKDVDEUDQGQHZERRNFDOOHG'HOLYHULQJ
+DSSLQHVVZKHUHKHWHDFKHVXVH[DFWO\KRZWREXLOGDKDSSLQHVVGULYHQ
2QO\DERXWSHUFHQWRIWKHVKRUWWHUPFUHGLWIRUVPDOO EXVLQHVV
EXVLQHVVHVFRPHVIURPEDQNV6XSSOLHUVPDNHXSPRVWRIWKH
UHVWDFFRUGLQJWRWKH&UHGLW5HVHDUFK)RXQGDWLRQDWUDGH &RPHVHH7RQ\OLYHDWRXU:RUGRI0RXWK6XSHUJHQLXV&RQIHUHQFH-XO\
JURXSLQ&ROXPELD0G1RZZLWKEDQNVFKRNLQJRIIFUHGLW LQ1<&,SURPLVHLWZLOOPDNH\RXKDSS\
PDQ\VPDOOFRPSDQLHVDUHSUHVVLQJYHQGRUVIRUPRUHWLPHWR
SD\WKHLUELOOVLQHIIHFWDVNLQJIRUDORDQWRWLGHWKHPRYHU ,QKLVDPD]LQJVHVVLRQ7RQ\ZLOOWDONDERXWKRZWRHVWDEOLVKDFXOWXUHRI
XQWLOWKH\JHWSDLGE\WKHLUFOLHQWV GHOLYHULQJ:2:KRZWRKHOSHPSOR\HHVJURZERWKSHUVRQDOO\DQG
SURIHVVLRQDOO\DQGKRZLWFDQDOODGGXSWRLQFUHGLEOHZRUGRIPRXWK²
7RPDNHVXUHWKH\GRQ¶WJHWVWLIIHGWUDGHFUHGLWRUVDUHWDNLQJ DQGSURILWV
DFORVHUORRNDWFXVWRPHUVWKDWDVNIRUFUHGLW7KH\DUHXVLQJ
VRSKLVWLFDWHGULVNDQDO\VLVWRIHUUHWRXWDQGFXWRIIFXVWRPHUV &OLFNKHUHWROHDUQPRUH

2QHRIWKHELJJHVWPLVWDNHV\RXFDQPDNHZKHQVHOOLQJ\RXUEXVLQHVVLV
KDYLQJ\RXUODZ\HUGRDOORIWKHWDONLQJIRU\RX7KLVFUHDWHVDYHU\
XQHDV\DQGGLVWUXVWIXODWPRVSKHUHZLWKWKHEX\HU7KH\DVVXPH\RXDUH
DYHU\XQWUXVWLQJDQGSRVVLEO\XQWUXVWZRUWK\SHUVRQWREHGRLQJ
EXVLQHVVZLWKWKH\ILJXUH\RXPXVWKDYHVRPHWKLQJWRKLGH
6KDUH

817(03/$7(5
%86,1(6623325781,7,(6:(%/2* 7KH6HFUHWVRI6RPHRQH(OVH¶V
%LJJHVW0LVWDNHV2ZQHUV0DNH 6XFFHVV
-81$0
:KHQ6HOOLQJ7KHLU&RPSDQ\
-81$0
SKRWRFUHGLWWLPSDUNLQVRQ %URJDQ*RGLQ*DU\9HH%DEDXWD)ULHG<RX¶YHKHDUGWKHQDPHV
<RX¶YHPD\EHUHDGWKHERRNV+HOOZH¶YHHYHQJLYHQWKHPRXWKHUHDW
8QWHPSODWHU/RRNDWDQ\RQOLQHQLFKHDQG\RX¶UHJRQQDILQGVXSHUVWDUV
-RKQ:DUULOORZWKHDXWKRURI%XLOW7R6HOO7XUQ<RXU
DQGIRONVWKDWKDYHPDGHDQDPHIRUWKHPVHOYHV$QGWKHIDVWPDMRULW\
%XVLQHVV,QWR2QH<RX&DQ6HOONQRZVDERXWVHOOLQJ
KDYHZRUNHGWKHLUDVVHVRIIWRJHWZKHUHWKH\DUH$QGJRRGIRUWKHP
EXVLQHVVHV+HKDVVWDUWHGDQGH[LWHGIRXUFRPSDQLHV+LV
7KLVSRVWLVQ¶WPHDQWWREDVKWKRVHZKRKDYHEHHQVXFFHVVIXO%XWZKDW
QHZERRNLVDFRPSDFWDQGHVVHQWLDOJXLGHWRDQ\RQHZKR
GRWKH\KDYHWRGRZLWK\RX"$WWKHHQGRIWKHGD\QRWPXFK
SODQVWRVHOOWKHLUEXVLQHVV6XJJHVWLRQEX\WKHERRNDFRXSOH
%HFDXVH\RXDUHQ¶WWKHP:KDWZRUNHGIRUWKHPPD\QRWZRUNIRU\RX
RI\HDUVEHIRUH\RXSODQWRVHOOEHFDXVH\RXKDYHDORWPRUH
6RHQRXJKZLWKWKHKHURZRUVKLS7KHUHFRPHVDSRLQWZKHUHEHLQJ
ZRUNWRGRWKDQ\RXUHDOL]H6WDWHGUHFHQWO\RQ$ERXWFRP
VXFFHVVIXOPHDQVEHLQJ\RXURZQSHUVRQ
:KHQEXVLQHVVRZQHUVUHFHLYHRIIHUVRUZKDWLVRWKHUZLVHFDOOHGD³WHUP
6LQFH,¶PDOZD\VRQHIRUUHDOZRUOGH[DPSOHV,¶OOXVH«P\VHOI7DNHD
VKHHW´WKLVLVMXVWWKHLQLWLDORIIHUWKDWRQFHDFFHSWHGE\\RXJLYHVWKH
ORRNDWP\WZLWWHUVWUHDP*RDKHDG,¶OOZDLW1RZZLWKRXWUHDGLQJP\
EX\HUDFKDQFHWRGRIXUWKHUGLJJLQJDURXQGWRZKLFKWKH\PD\UHDOL]H
ELRJXHVVZKDW,GRIRUDOLYLQJ:RXOG\RXJXHVVZHEGHVLJQ
VRPHWKLQJDERXW\RXUEXVLQHVVWKDWWKH\GRQ¶WOLNH'RQ¶WPDNHWKH
GHYHORSPHQW"3UREDEO\QRW7KDW¶VZKDW,GRWKRXJK2UPD\EH
PLVWDNHRIWKLQNLQJWKDWWKHWHUPVKHHWLVDGRQHGHDO
ILGXFLDU\PRQH\PDQDJHU",5($//<GRXEW\RX¶GJXHVVWKDW%XW,
ZRUNHGLQEDQNLQJDQGILQDQFHIRURYHU\HDUV,QIDFW,VWLOOKDYHP\
0DQ\RZQHUVKDYHFHUWDLQSHUNVWKDWWKH\SXWWKURXJKWKHLUFRPSDQ\
6HULHVOLFHQVH%XWP\WZLWWHUVWUHDPFRQVLVWVRIPHVZHDULQJSRVWLQJ
VXFKDVKRWHOURRPVIDPLO\YDFDWLRQVRQWKHZHHNHQGVJDVDQGHYHQ
ZHLUGSLFWXUHV,ILQGRQWKHQHWDUWLFOHVSRVWV,OLNHDQGKDYLQJ
FRIIHHRUEUHDNIDVWH[SHQVHV:KHQVRPHRQHLVEX\LQJ\RXUEXVLQHVV
FRQYHUVDWLRQVZLWKIRONV2KDQGP\VRQ/RWVRISLFVRIP\VRQ0\
WKH\ZLOOORRNDWHYHU\ODVWGHWDLODERXW\RXUH[SHQVHVVR\RXGRQ¶WZDQW
SRLQW"$OPRVWQRQHRILWUHODWHVWRZKDW,DFWXDOO\GRIRUDOLYLQJ
WRKDYHWRRPDQ\RIWKHVHOX[XULHVOLVWHG
+RZHYHU,¶YHEXLOWP\IUHHODQFHEXVLQHVVEHFDXVHRIWZLWWHU$QGZKHQ,

VD\µEXLOW¶,PHDQµDOOP\OHDGVKDYHFRPHIURPZRUGRIPRXWK LWLV\RX¶UHWU\LQJWRGR
UHFRPPHQGDWLRQVDQGKHOSLQJSHRSOHRQWZLWWHU¶1RWEDGIRUDWDWWRR¶G
DOPRVW\HDUROGZKROLNHWRVD\³IXFN´DORW%XWSHRSOHFDQVHHPH $OZD\VEHVWUDLJKWIRUZDUGZLWKHYHU\RQHZKRLVLQYROYHGLQ\RXU
NQRZH[DFWO\ZKDW,DPDOODERXWDQGIHHOFRPIRUWDEOHNQRZLQJWKDW EXVLQHVV7KHPRUHKRQHVW\RXDUHZLWK\RXULQYHVWRUVFXVWRPHUV
WKHUHLVQ¶WVRPHSHUVRQDEHLQJGLVSOD\HGWRWKHZRUOG<HV,DOVRGRJRRG HPSOR\HHVDQGRWKHUVWKHEHWWHU\RXUEXVLQHVVZLOOXOWLPDWHO\EH:KHQ
ZRUN7KDWFHUWDLQO\KHOSV%XW,¶PQRWVRPHEODQGIHHGRILQGXVWU\ \RXKLGHWKLQJVIURPSHRSOHLWKDVDZD\RIEDFNILULQJDQGFRPLQJEDFN
VSHFLILFLQIRUPDWLRQRU57PDFKLQHWKDWSDUURWVHYHU\RQHHOVH,QWKH WRKDXQW\RXODWHURQGRZQWKHURDG
ZRUGVRI3LQRFFKLR³,¶PDUHDOER\´
/DVWO\DQGSUREDEO\RQHRIWKHPRUHLPSRUWDQWNH\VLVWREHJHQHURXV
6RWKLQNDERXWZKDW\RXGR2UZKDW\RXZDQWWRGR:KDW\RX¶UH ZLWK\RXUHPSOR\HHV<RXUILUVWLQVWLQFWPD\EHWRKROGRQWRHYHU\OLWWOH
EXLOGLQJVKRRWLQJIRULQOLIH,EHWWKHUHDUHVRPHIRONVLQWKDWVSDFHZKR SLHFHRIVWDNHDQGEHQHILWWKDW\RXUEXVLQHVVKDVWRRIIHUEXWLI\RXOHWJR
DUHZHOONQRZQ.H\QRWHOHYHOSHRSOH6WRSKDQJLQJRQWKHLUHYHU\ZRUG RIVRPHRIWKHVHDQGRIIHU³RSWLRQV´WR\RXUHPSOR\HHVWKHQWKH\ZLOOLQ
6WRSVKDULQJHYHU\WKLQJWKH\VFULEEOHRQWRDSDJH6WRSWU\LQJWREH UHWXUQZRUNKDUGHUDQGVPDUWHUIRU\RXDVWKH\ZLOOEHPRUHPRWLYDWHG
WKHP,I\RX¶UHJRLQJWRVWXG\DQ\WKLQJDERXWWKHPORRNDWWKHLUZRUN WRGRVR
HWKLFQRWWKHLUSDUWLFXODUPHWKRGV%HFDXVHWKH\ZRUNHGKDUGWRJHW
ZKHUHWKH\DUH7KHUHLVQ¶WDVLOYHUEXOOHWWKDWZLOOJHW\RXWKHUH1RUZLOO
UHDGLQJWKHODWHVWJXUXERRN,W¶VZRUNLQJ\RXUDVVRIIDQGDFWXDOO\GRLQJ
JRRGZRUNWKDWSD\VRIILQWKHHQG
%86,1(6623325781,7,(6:(%/2*
6PDOO%XVLQHVV353ODQ)RU
%86,1(6623325781,7,(6:(%/2* 7RGD\
-81$0
.H\V7R%XLOGLQJ$6XFFHVVIXO
%XVLQHVV
-81$0
SKRWRFUHGLW6WDUV *R %OXH SKRWRFUHGLW/RRS=LOOD
:HDOOZDQWWRVXFFHHGDWHYHU\WKLQJZHGRLQOLIHHVSHFLDOO\WKDWRID 0DMRUPHGLDRXWOHWVDUHVWLOOLPSRUWDQWEXWWKHLULPSRUWDQFH
VPDOOEXVLQHVVRSHQLQJ<RXSXWVRPXFKHIIRUWWLPHDQGPRQH\LQWR KDVEHHQGLOXWHGWRVRPHGHJUHHE\DPLOOLRQEORJJHUVDQGWKH
RSHQLQJXS\RXUQHZEXVLQHVVWKDWRIFRXUVH\RXZDQWWRVHHLWVXFFHHG IORZRILQIRUPDWLRQWKDWPDUFKHVGLUHFWO\WRWKHHQGXVHU
LQDOODVSHFWVWKDWLWFDQ,UHFHQWO\FDPHDFURVVDJUHDWDUWLFOHORFDWHGRQ %RWKRIWKHVHWUHQGVVSHOORSSRUWXQLW\IRUVPDOOEXVLQHVVHV
2SHQ)RUXPWKDWWDONVDERXWWKHWKUHHVLPSOHNH\VWREXLOGLQJD DLPLQJWRWDSWKHDZHVRPHOHDGJHQHUDWLRQDQGFXVWRPHU
VXFFHVVIXOVPDOOEXVLQHVV OR\DOW\EXLOGLQJSRZHURI35%HORZDUHILYHVWHSVWKDWDQ\
VPDOOEXVLQHVVFDQWDNHWRFUHDWHDV\VWHPDWLFDSSURDFKWR35
)LUVW\RXKDYHWREHSDVVLRQDWHDERXWWKHSURGXFWRUVHUYLFH JHQHUDWLRQ$VVWDWHGRQ'XFW7DSH0DUNHWLQJ
\RX¶UHSURYLGLQJ(YHU\HPHUJLQJEXVLQHVVZLOOKDYHQHDU
GHDWKH[SHULHQFHVDQGWRJHWWKURXJKWKHP\RXQHHGPRUH 8VHWKHKHFNRXWRIQHWZRUNLQJLWLVRQHRI\RXUPRVWYDOXDEOHWRROVLQ
WKDQDILQDQFLDOLQFHQWLYH<RXQHHGWRUHDOO\FDUHDERXWZKDW WKH35ZRUOGWRGD\7KHUHDUHWKRXVDQGVRIVLWHVRQOLQHZLWKWRQVRI

SHRSOHDVVRFLDWHGZLWKWKHPWKDWDUHMXVWVLWWLQJDW\RXUILQJHUWLSV6R FKDQJH\RXUZRUNGRHVDVZHOO
JHWRQWKRVHVLWHVDQGVHWXSVRPHVRFLDOQHWZRUNVULJKWDZD\
7DNHIXOODGYDQWDJHRIOHWWLQJHYHU\RQHNQRZWKURXJKSUHVVUHOHDVHV\RXU
QHZVXSFRPLQJHYHQWVDQGVRRQ<RXFDQGRWKLVPRQWKO\RULI\RXU 7+(60$573$66,9(,1&20(%/2*
SUHIHUDQGKDYHWKHLQIRUPDWLRQWRGRLWPRUHIUHTXHQWO\WKHQRQFHD
PRQWK\RXFDQ <RX7XEH7LSVDQG7ULFNV)RU
/DVWEXWQRWOHDVWEHVXUHWRDPSOLI\\RXUSUHVVUHOHDVHVHYHQLI\RXKDYH %ORJJHUV±3DUW
WKHVPDOOHVWSLHFHRIQHZVRXWWKHUHWKHUH¶VQRUHDVRQZK\\RXVWLOOFDQ¶W -81$0
PDNHLWVHHPKXJHWR\RXUFRPSDQ\6HQGRXWWKDWSUHVVUHOHDVHJHWRQ
7ZLWWHUDQGSRVWDERXWLWDVZHOODVRWKHUVLWHVPD\EHHYHQWU\VHQGLQJ
RXWVRPHIO\HU¶VUHJDUGLQJ\RXUQHZVWR\RXUPRVWOR\DOFOLHQWV
6(7+¶6%/2*
%$&2DQG\RXUFDUHHU
-81$0
%ULDQ7UHOVWDGDQGKLVWHDPDW$FXPHQKDYHKDGJUHDWVXFFHVVXVLQJD
PHWULFWKH\FDOO%$&2WKHEHVWDOWHUQDWLYHFKDULWDEOHRSWLRQ7KH\FDQ
FRPSDUHWKHUHVXOWVRIWKHGHYHORSPHQWDQGLQYHVWPHQWZRUNWKH\GRWR
WKHUHVXOWVWKDWGLUHFWDLGRUFKDULW\ZRXOGJHQHUDWHLQVWHDG,QVKRUW
ZKHQ\RXXQGHUVWDQGWKHDOWHUQDWLYHLW¶VIDUHDVLHUWRQRWRQO\PHDVXUH <RX7XEH
\RXUZRUNEXWYDOXHLW
,W¶VEHHQDURXQGIRURYHU\HDUV\HWIRUVRPHUHDVRQPRVWEORJJHUVVWLOO
,I\RXDUHIDPLOLDUZLWKDJUHDWUHVWDXUDQWMXVWGRZQWKHVWUHHWWKDW KDYHQ¶WH[SORUHGWKHYLGHRVKDULQJSODWIRUPZKHUHPLOOLRQVRISHRSOH
UDLVHVWKHEDUIRUDQHZUHVWDXUDQWWRJHW\RXUEXVLQHVV DURXQGWKHZRUOGDUHZDWFKLQJRYHUELOOLRQYLGHRVDGD\
,I\RXOLYHLQDRQHFRPSDQ\WRZQDQGKDYHEXWRQHVNLOO\RXGRQ¶WKDYH ,WRRNWKH63,EUDQGRQWR<RX7XEHRQ6HSWHPEHUWKIRUWKH
DORWRIRSWLRQV7KHERVVWHOOV\RXZKDWWRGRDQG\RXGRLW2QWKHRWKHU VDPHUHDVRQ,GRHYHU\WKLQJHOVH,UHSRUWRQWKLVEORJ±WRVHHLILW¶VD
KDQGLI\RX¶UHDZRUOGFODVV5XE\RQ5DLOVSURJUDPPHUZLWKD ZRUWKZKLOHSODFHWRLQYHVWP\WLPH
UHSXWDWLRQRQ6WDFN2YHUIORZ\RXKDYHSOHQW\RIRSWLRQVDQGDVDUHVXOW
\RXUERVVWUHDWV\RXZLWKPRUHUHVSHFWDQG\RXFDQEHDORWPRUH GD\VODWHU,FDQWUXWKIXOO\VD\WKDW,¶PPRUHWKDQSOHDVHGZLWKWKH
FKRRV\DERXWZKLFKSURMHFWV\RXWDNHRQUHDOL]LQJRIFRXUVHWKDW\RX UHVXOWVRIP\H[SHULPHQWZLWK<RX7XEHWRH[SDQGWKH63,EUDQGDQG
VWDNH\RXUUHSXWDWLRQRQHYHU\WKLQJ\RXGR DXGLHQFHEDVH+HUHDUHVRPHTXLFNQXPEHUVIURPP\DFFRXQWDVRI
WRGD\
&DOOLW\RXU%$32EHVWDOWHUQDWLYHSURIHVVLRQDORSWLRQ,WFKDQJHV\RXU
SRVWXUHZKHQ\RXKDYHDQRSWLRQ,I\RX¶YHJRWDQRWKHUFOLHQWPRUH 8SORDGHG9LGHRV
LQWHUHVWLQJRUEHWWHUSD\LQJWKDQWKLVRQH\RXFDQFRQILGHQWO\DFWWKDW
ZD\²LWUDLVHVWKHEDULQWKHZD\SHRSOHWUHDW\RX:KHQ6W/XNH¶VZDV 7RWDO9LHZV
WKHKRWWHVWDGDJHQF\LQWKH8.WKH\PDGHWKHGHFLVLRQQRWWRJURZ²LQ
RUGHUWRWDNHDQHZFOLHQWWKH\KDGWRILUHDQROGRQH:KDWGR\RXWKLQN 6XEVFULEHUV
WKDWGLGWRWKHEHKDYLRURIWKHFXUUHQWFOLHQWV"
7KDW¶VDQDYHUDJHRIDERXWQHZYLGHRHYHU\WRZHHNV&RQVLGHULQJ
&RUSRUDWLRQVDQGRUJDQL]DWLRQVEUDLQZDVKHGJHQHUDWLRQVRISHRSOHWR WKDWWKHDYHUDJHOHQJWKRIP\YLGHRVLVDERXWPLQXWHVLQOHQJWK\RX
EHOLHYHWKDWWKH\KDGQRRSWLRQ*RWRVFKRROJRWRWKHSODFHPHQWRIILFH FDQJHWDIHHOIRUMXVWKRZPXFKWLPH,¶YHUHDOO\GHGLFDWHGWRWKLV
JHWDMREGRZKDW\RX¶UHWROG7KHDPD]LQJUHDOLW\RIRXUWLPHLVWKLVLVQR ³H[SHULPHQW´±PLQXWHVHYHU\ZHHNV
ORQJHUWUXH$QG\HW$QG\HWIHZSHRSOHDUHGHYHORSLQJWKHLUDOWHUQDWLYH
EXLOGLQJDQH[WHUQDOUHSXWDWLRQDQG\HVHYHQPRRQOLJKWLQJRQWKH 1RWDKXJHDPRXQWRIWLPHLQYHVWHGEXW\RXFDQVHHWKDW,¶YHHDUQHGD
ZHHNHQGV:KHQ\RXKDYHWKHRSWLRQQRWRQO\GRHV\RXUFRQILGHQFH FRQVLGHUDEOHQXPEHURIYLHZVDQGDJRRGDPRXQWRIVXEVFULEHUVDVD

UHVXOWZKLFKKDVXOWLPDWHO\LQFUHDVHGWUDIILFWRP\EORJDVZHOODVKHOSHG WHFKQLTXHDQGLWPDNHVOHDUQLQJDERXWLQWHUQHWEXVLQHVVDQGEORJJLQJ
WRHDUQDIHZDIILOLDWHVDOHVKHUHDQGWKHUH:LWKRXWPXFKDGGLWLRQDO IXQ
HIIRUWP\GDLO\YLHZHUVKLSFRQWLQXHVWRJURZDV\RXFDQVHHEHORZ
:KDW¶VWKH:RUVW7KDW&DQ+DSSHQ"
0DQ\EORJJHUVGRQ¶WXVH<RX7XEHEHFDXVHRIWKHIDFWWKDWLWLVYLGHRDQG
%\QRPHDQVZRXOG,FDOOP\VHOID<RX7XEHH[SHUWEXW,¶YHSLFNHGXSD
YLGHRPHDQVWKH\¶OOKDYHWREHRQVFUHHQRUDWOHDVWWDONLQJRYHUVRPH
IHZWLSVDQGWULFNVDORQJWKHZD\WKDWPD\KHOS\RXH[SDQG\RXUEUDQG
VOLGHVRUDSUHVHQWDWLRQ
LQFUHDVH\RXUYLHZVDQGJUDEPRUHVXEVFULEHUVLI\RXGRGHFLGHWR
H[SDQGRQWR<RX7XEHLI\RX¶UHQRWRQWKHSODWIRUPDOUHDG\
:HOO\RXFDQ¶WKLGHEHKLQG\RXUEORJIRUHYHULI\RXZDQWWRJHW
DQ\ZKHUHDQG<RX7XEHLVWKHSHUIHFWSODFHWR³SUDFWLFH´VWHSSLQJRXWRI
0LQGVHW6WXII
\RXUFRPIRUW]RQHDQGSXEOLVKLQJPRUHWKDQMXVWW\SHGWH[W
3URYLGH*RRG&RQWHQW
,ZDVVFDUHGWRRDWILUVWEXWWKHQ,WKRXJKWWRP\VHOI³:KDW¶VWKH:RUVW
7KDW&DQ+DSSHQ"´
7KLVLVQRWUHDOO\DWULFNDQG,¶PVXUHLW¶VVRPHWKLQJ\RXKHDUGEHIRUH
EXW,¶PUHLWHUDWLQJLWKHUHEHFDXVHLW¶VVWLOOWKHPRVWLPSRUWDQWWKLQJWR
5HDOO\ZKDWLVWKHZRUVWWKDWFDQKDSSHQ"6R\RXXSORDGDYLGHRDQGLW
XQGHUVWDQGEHIRUHDQ\WKLQJHOVH0XFKOLNHZLWK\RXUEORJRURQOLQH
JHW¶VQRYLHZV6RZKDW"<RXOHDUQHGIURP\RXUH[SHULHQFHDQG\RXFDQ
EXVLQHVVLI\RXGRQ¶WSURYLGHJRRGFRQWHQWWKHQHYHU\WKLQJHOVH\RXGR
RQO\GREHWWHUIURPWKHUH3OXV,GRXEW\RX¶OOHYHUJHW]HURYLHZVLI\RX
GRHVQ¶WUHDOO\PDWWHU
IROORZWKHWLSVODWHULQWKLVSRVWVHULHV
9LGHR4XDOLW\'RHV0DWWHU
:LWKLQ<RXU9LGHRV
,I\RXXSORDGDEOXUU\FUDSS\DQGODJJ\YLGHRSHRSOHZRQ¶WVWLFNDURXQG
3ODFHD:DWHUPDUNRI\RXU%ORJ¶V85/RQWKH9LGHR
WRZDWFKLW±HYHQLIWKHFRQWHQWLVJRRG<RXUYLGHRGRHVQ¶WKDYHWREHLQ
+LJK'HIRUDQ(PP\$ZDUG:LQQLQJSURGXFWLRQEXWLWGRHVKDYHWREH
$ZDWHUPDUNWKURXJKRXWPRVWRUDOORI\RXUYLGHRZLOOJLYHSHRSOHDQ
ZDWFKDEOH8VH\RXUFRPPRQVHQVHKHUH
HDV\ZD\WRNQRZH[DFWO\ZKHUHWKLVFRQWHQWLVFRPLQJIURPDQGZKHUH
WKH\FDQJRWRJHWPRUH
,WU\WRXSORDGDOORIP\YLGHRVLQ+'[UHVROXWLRQEHFDXVHLW
ORRNVUHDOO\JRRGRQWKH<RX7XEHDQGDQ\HPEHGGHGSOD\HUV
0RUHLPSRUWDQWO\LIDQ\RQHFKRRVHVWRHPEHGWKHYLGHRRQWKHLURZQ
ZHEVLWHWKHLUDXGLHQFHZLOONQRZLWRULJLQDWHVIURP\RXDQG\RXUEORJ
6WDQG2XW)URPWKH&URZG
ZKLFKWKH\FDQVHHWKHXUOIRUULJKWLQIURQWRIWKHLUIDFHV±GULYLQJWUDIILF
DQGH[SDQGLQJ\RXUEUDQGDWWKHVDPHWLPH7KHGHVFULSWLRQRIWKHYLGHR
7KHUHDUHD721RIYLGHRVRQHYHU\VXEMHFWLPDJLQDEOHVRLQRUGHUWRJHW
RQ<RX7XEHGRHVQ¶WVKRZXSZKHQHPEHGGHGRQWRDQRWKHUVLWHVRD
PRUHYLHZVDQGJHWSHRSOH¶VDWWHQWLRQ\RX¶UHJRLQJWRKDYHWRGR
ZDWHUPDUNZLOODWOHDVWLQFOXGH\RXUXUO
VRPHWKLQJGLIIHUHQWWKDQWKH³RWKHUJX\V´:KDWLWLVUHDOO\GHSHQGVRQ
ZKDWQLFKH\RX¶UHLQDQGZKDWNLQGVRIYLGHRVRWKHUSHRSOHKDYH
%HJLQZLWKD4XLFN2YHUYLHZ
XSORDGHGEXWMXVWGR\RXUEHVWWRILQGVRPHWKLQJWKDW¶VXQLTXHO\³\RXUV´
<RXUMREDVDSXEOLVKHURIDYLGHRRQ<RX7XEHLVWRJHWSHRSOHWRZDWFK
)RUH[DPSOHDORWRIP\YLGHRVFRPSULVHRIP\³HOHFWURQLFZKLWHERDUG´
\RXUYLGHRVDQGWRFRQWLQXHZDWFKLQJ\RXUYLGHRVDOOWKHZD\WKURXJK
0DQ\SHRSOHHQMR\ZDWFKLQJWKHVHYLGHRVEHFDXVHQRRQHHOVHXVHVWKLV
7KHEHVWDQGHDVLHVWZD\WRGRWKLVLVWRVLPSO\EHJLQ\RXUYLGHRZLWKDQ

RYHUYLHZRIZKDW\RX¶UHJRLQJWRFRYHUDQGDSSUR[LPDWHO\KRZORQJLW KDVDUHFRJQL]DEOHWXQHLHDSRGFDVWZLWKLQWURPXVLFWKHQ\RXPD\

ZLOOWDNH YHU\ZHOOZDQWWREULQJWKDWPXVLFRYHUWR\RXU<RX7XEHYLGHRVIRU
FRQWLQXLW\
(YHQWKRXJKWKHUH¶VDYLGHRWLWOHDGHVFULSWLRQDQGDWLPHOLQHMXVWVD\LQJ
ZKDW\RXUYLGHRLVDERXWZLOOHQJDJH\RXUYLHZHUVDQGLQFUHDVHWKH ,KDGLQWURPXVLFLQP\ILUVWIHZYLGHRVDORQJZLWKDWLWOHVFUHHQIRUHDFK
FKDQFHVRIWKHPVWLFNLQJDURXQGHVSHFLDOO\LI\RXFDQJHWWKHPH[FLWHG EXW,VWRSSHGGRLQJWKDWEHFDXVHWKH\GLGQ¶WUHDOO\VHUYHDQ\SXUSRVH
DERXWZKDW\RX¶UHDERXWWRWDONDERXW 7KH\MXVWWRRNXSSUHFLRXVWLPH<RX7XEH¶VPD[YLGHROHQJWKLVRQO\
PLQXWHVDQGIRUDOO,NQRZKXQGUHGVRISHRSOHZKRZDWFKHGWKRVH
'RQ¶W)RUJHW<RXU&DOOVWR$FWLRQ YLGHRVH[LWHGULJKWDZD\EHFDXVHWKH\GLGQ¶WOLNHWKHPXVLFHYHQEHIRUH
WKH\JHWWRWKHFRQWHQWRIWKHYLGHR
0DQ\SHRSOHVKRRWIDQWDVWLFYLGHRVEXWIDLOWROHDYHRXWDQ\FDOOVWR
DFWLRQ,I\RXZDQWWKHKLJKHVWLPSDFWIURP\RXUYLGHRV\RXKDYHWR ,QP\ODWHUYLGHRV,VNLSSHGWKHLQWURPXVLFHQWLUHO\DQGZHQWVWUDLJKWWR
LQFOXGHDWOHDVWRQHFDOOWRDFWLRQDWWKHHQGRI\RXUYLGHRSUHIHUDEO\ DQRYHUYLHZRIZKDW¶VWRFRPH,IWKH\VWLOOOHDYHDIWHUWKDWWKHQDWOHDVW
WHOOLQJWKHPWRYLVLW\RXUZHEVLWH,¶YHRIWHQLQFOXGHGPRUHWKDQRQH WKH\DUHOHDYLQJIRUWKHULJKWUHDVRQV
VRPHWLPHVWHOOLQJWKHPWRVD\KLWRPHRQ7ZLWWHURURQP\)DFHERRN
3DJHDVZHOO ,WVHHPVWREHZRUNLQJRXWPXFKEHWWHUDQGLW¶VOHVVHGLWLQJIRUPHWRGR
DVZHOO
-XVWWKLQN±LIDYLHZHUPDNHVLWWRWKHHQGRI\RXUYLGHRWKH\¶UHJRLQJWR
EHLQWKHEHVWVWDWHRIPLQGWRIROORZDQ\FDOOVWRDFWLRQVWKDW\RXKDYHWR 8S1H[W
VD\
,Q3DUWRIWKLVVHULHV,¶OOEHJRLQJRYHUVRPHWULFNV\RXFDQGRZLWK\RXU
6FUHHQ6KDULQJLV$ZHVRPH YLGHRWLWOHGHVFULSWLRQDQGWDJVWRJHWPRUH<RX7XEHVHDUFKHQJLQH
WUDIILF$OVR,¶OOEHJRLQJRYHUKRZWRLPSURYH\RXUFKDQQHODVZHOO
7KHUH¶VDKXJHGLIIHUHQFHEHWZHHQMXVWWHOOLQJVRPHRQHKRZVRPHWKLQJ
ZRUNVRUHYHQOLVWLQJRXWWKHVWHSE\VWHSLQVWUXFWLRQVDQGDFWXDOO\ &KHHUV
VKRZLQJSHRSOHH[DFWO\KRZWRGRLW
,I\RXKDYHDQRSSRUWXQLW\WRWHDFK\RXUDXGLHQFHVRPHWKLQJE\VKRZLQJ ±±±±±±±
WKHPKRZLWZRUNVRQ\RXUFRPSXWHUGRLW6FUHHQUHFRUGLQJDQG $VDOZD\V,MXVWZDQWHGWRWKDQN\RXIRUVXEVFULELQJ7KLVEORJLVD
VKDULQJLVDIDQWDVWLFZD\WRHQJDJH\RXUDXGLHQFHDVZHOODVHDVLO\JLYH VXFFHVVEHFDXVHRI\RXDQG\RXUVXSSRUW+HUH¶VWR\RXURQOLQH
WKHPWKHVWHSVQHHGHGWRGRZKDWHYHULWLV\RXZDQWWKHPWRGR VXFFHVV
<RXFDQXVHVRIWZDUHVXFKDV&DPWDVLD6WXGLRVIRU3&RU&DPWDVLDIRU %HFRPHD)DQRIWKH6PDUW3DVVLYH,QFRPH%ORJRQ)DFHERRNDQGMRLQ

0DFWRJHWWKHMREGRQHTXLWHQLFHO\7KHUHDUHFKHDSHURSWLRQVRXWWKHUH WKHFRQYHUVDWLRQ
VXFKDV-LQJ6FUHHQFDVWRU6FUHHQIORZIRU0DFWKDWDJDLQPDNHLWHDV\
WRUHFRUG\RXUVFUHHQDQGWKHQTXLFNO\XSORDGWR<RX7XEH 7KDQN\RXVRPXFK
0RVWRIP\YLGHRVDUHGRQHRQ&DPWDVLDIRU0DF,WFDQUHFRUGP\ <RX7XEH7LSVDQG7ULFNV)RU%ORJJHUV±3DUW
VFUHHQHDVLO\LQWKH[+'IRUPDWWKDW,OLNHDQGDOVRP\IDFHRQ
P\L0DFFDPHUDDWWKHVDPHWLPH$IWHUDOLWWOHELWRIHGLWLQJ,VLPSO\
FOLFNVKDUH!<RX7XEHDQGLW¶VXSLQQRWLPH
$OVRLI\RXKDYHWKHFKDQFHXWLOL]HVRPHRIWKHFRROIHDWXUHVWKDWFRPH
ZLWKWKHVRIWZDUHWRHQKDQFHWKHORRNRI\RXUYLGHR8VLQJWKLQJVOLNH
IDGHLQ DQGIDGHRXW]RRPLQDQG]RRPRXWRUHYHQDGGLQJWLWOHVDQG
OLWWOHQRWHVWR\RXUYLGHRZKLFK\RXFDQVHHPHXWLOL]HRQWKLV<RX7XEH
YLGHRVHHWKHVHFPDUN
$JDLQQRWVRPDQ\SHRSOHGRWKLVVRLW¶VDQRWKHUZD\WRPDNH\RXU
YLGHRVVWDQGRXWRIWKHFURZG
,QWUR2XWUR6FUHHQDQG0XVLF"
3XWWLQJLQWURRURXWURVFUHHQDQGPXVLFLVGHEDWDEOHDQGUHDOO\GHSHQGV
RQ\RXUVW\OHDQGZKDW\RXOLNHWRGR,I\RXDOUHDG\KDYHDEUDQGWKDW

-XQH
7RGD\·V7DEEORLG
%86,1(6623325781,7,(6:(%/2* SURWHFWLRQDQGULJKWV
6KRXOG<RX3D\7R7UDGHPDUN 3KRWRE\FDVHFRQQHFW
<RXU3URGXFW2U6HUYLFH"
-81$0
%86,1(6623325781,7,(6:(%/2*
2QOLQH%DQNLQJ
-81$0
$FFRUGLQJWRDVWRU\DW9HQWXUH%HDWILOLQJIRUDIHGHUDOWUDGHPDUNFDQEH
DQH[SHQVLYHHQGHDYRUFRVWLQJWKRXVDQGVRIGROODUV
6RXQOHVV\RXKDYHWKHUHVRXUFHVLWPLJKWEHEHVWWRWU\PRUH
FRVWHIIHFWLYHZD\VRISURWHFWLQJ\RXUEUDQG
2QOLQHEDQNLQJLVDGRXEOHHGJHGVZRUGIRUVPDOOEXVLQHVVHV
7KHJRRGQHZVLV\RXGRQ¶WQHFHVVDULO\KDYHWRGRDQ\WKLQJWR ,W¶VHDV\DQGFRQYHQLHQWDQG\HWLWPDNHVWKHPYXOQHUDEOH
KDYHDSURWHFWDEOH³FRPPRQODZ´WUDGHPDUN WDUJHWVIRUF\EHUFULPLQDOV7KHUHDUHDORWRIVPDOOEXVLQHVVHV
RXWWKHUHDQGWKH\GRQ¶WDOOKDYHWKHELJEXGJHWVIRU,7
8QGHUFRPPRQODZDOO\RXQHHGWRGRLVEHWKHILUVWRQHWR UHVRXUFHVRUDODUJHVWDII$QRWKHUSRWHQWLDOGRZQVLGHLVWKDW
XVHLWDQG\RXFDQKDYHLWDVORQJDV\RXZDQWDVVXPLQJ\RX DVDVPDOOEXVLQHVVSURWHFWLRQODZVZRUNGLIIHUHQWO\6PDOO
FRQWLQXHWRXVHDQGSURWHFWLW,QVHUWLQJWKH³WP´V\PERO EXVLQHVVHVPD\KDYHPRUHGLIILFXOW\UHFRYHULQJDQ\RQOLQH
DIWHUWKHZRUGOHWV\RXFODLPRZQHUVKLS±DQGRQFHWKHSXEOLF DFFRXQWORVVHVEHFDXVHEXVLQHVVDFFRXQWVW\SLFDOO\GRQRW
DVVRFLDWHVWKHPDUNZLWK\RXUSDUWLFXODUJRRGVRUVHUYLFHV KDYHWKHVDPHOHYHORIOHJDOSURWHFWLRQSURYLGHGWR
\RX¶YHHVWDEOLVKHGDFRPPRQODZWUDGHPDUN FRQVXPHUV(QWUHSUHQHXUFRP
+RZHYHULWLVLPSRUWDQWWRXQGHUVWDQGWKDWWKHFRPPRQODZ :KLOH\HVWKHUHDUHVRPHULVNVWRWDNHZKHQGHDOLQJZLWKRQOLQHEDQNLQJ
WUDGHPDUNLVQRWJOREDO,W¶VOLPLWHGWRWKHJHRJUDSKLFDUHD LWLVDQH[WUHPHO\YDOXDEOHDQGXVHIXOWRROIRUDOOVPDOOEXVLQHVVHVWR
ZKHUH\RXUSURGXFWVDUHVROGRUVHUYLFHVDUHUHQGHUHG KDYH
)LOLQJDWUDGHPDUNUHJLVWUDWLRQZLWKWKHDSSURSULDWHVWDWH 1RWRQO\GRHVRQOLQHEDQNLQJSURYLGH\RXZLWKGHWDLOHGUHSRUWVRQDOORI
GHSDUWPHQWDIHGHUDOWUDGHPDUNUHJLVWUDWLRQZLWK8QLWHG \RXUDFFRXQWVEXWLWPDNHVOLIHVRPXFKVLPSOHUIRU\RXDVZHOO7KHUHLV
6WDWHV3DWHQWVDQG7UDGHPDUN2IILFH³86372´RUHYHQD QRQHHGWRPDNHDVSHFLDOWULSDQ\PRUHMXVWWRWUDQVIHUPRQH\IURPRQH
IRUHLJQWUDGHPDUNUHJLVWUDWLRQZLWK:RUOG,QWHOOHFWXDO DFFRXQWWRDQRWKHURUWRFKHFN\RXUEDODQFHDVDOORIWKLVFDQEHGRQH
3URSHUW\2UJDQL]DWLRQ³:,32´ZLOOHQWLWOH\RXWRDGGLWLRQDO RQOLQH

<RXFDQDOVRSD\DOORI\RXUELOO¶VRQOLQHDVZHOOZLWKRQOLQHEDQNLQJ$QG VWUHDPZKDWVRPHVD\LVDQLPSRVVLEOHGUHDP
WKHJUHDWWKLQJDERXWWKLVRSWLRQLVWKDWPDQ\LQVWLWXWLRQVQRZRIIHU
FHUWDLQUHZDUGVZKHQ\RXSD\\RXUELOO¶VRQOLQHVXFKDVUHZDUGSRLQWV $PRQWKVHHPHGOLNHWRRXQUHDVRQDEOHRIDWLPHSHULRGIRUDUHDOLVWLF
ZKHQGRQHDVDFUHGLWUDWKHUWKDQDGHELWDQGQRPRQWKO\IHHVIRU\RXU DSSURDFKEXWZKDWLIZHLQVWHDGDVNHG
DFFRXQWZKHQ\RXSD\DFHUWDLQDPRXQWRIELOO¶VRQOLQHHYHU\PRQWK
³,I\RXNQHZ\RXFRXOGRQO\VSHQGPRQH\IRUWKHQH[W\HDU
5HVWDVVXUHWKDWZKHQVHWWLQJXSRQOLQHEDQNLQJDFFRXQW¶VZKLOHWKHUH ZKDWZRXOG\RXGR"´
DUHULVNVRIWKHIWWR\RXUDFFRXQWRULGHQWLW\DOPRVWDOOEDQN¶VRIIHUPDQ\
GLIIHUHQWLGHQWLW\WKHIWSURJUDPVDVZHOODVWKHRSWLRQWRVLJQXSIRU $IWHUWKHFRQFOXVLRQRIWKHRQH\HDUSHULRGZHKDYHWREHDEOHWRVXUYLYH
FHUWDLQSURJUDPVWKDWZLOOLQVXUH\RXUDFFRXQWXSWRDFHUWDLQDPRXQW SUHVXPDEO\DWDIDLUGHJUHHRIFRPIRUWIRUDQRWKHUVD\\HDUV$QG
ZKLFKZLOOUHIXQGDOOWUDQVDFWLRQVWKDWPD\WDNHSODFHGXULQJDWKHIW DVVXPLQJZH¶GOLNHRXUZRUOGWRFRQWLQXHZHQHHGWRWKLQNEH\RQGWKDW
WLPHSHULRGIRURXUNLGVWKHLUNLGVDQGVRRQ
,VLWGRDEOH"+RZZRXOGLWFKDQJHZKDW\RXEX\WRGD\DQGWKURXJKRXW
WKHQH[WPRQWKV":KDWZRXOGLWWDNHQRWRQO\WRVXUYLYHEXWWRJHW
ZKDW\RXZDQWRXWRI\RXURZQOLIHDQGWKHOLIHRIWKHJHQHUDWLRQVWKDW
817(03/$7(5 IROORZ"
:KDWLI<RX2QO\+DG2QH<HDU ,W¶VDVPXFKDQH[HUFLVHLQSUHSDUDWLRQDVLWLVSULRULW\VHWWLQJ
6RPHKRZZHKDYHWRJHWUHDG\IRUZKDW¶VFRPLQJ:KDW¶VWKHEHVW
/HIWWR6SHQG" DSSURDFK"
-81$0
+HUHDUHDIHZRIWKHWKLQJV,ZRXOGGRFRQVLGHUHGLQWKHFRQWH[WRID
KLHUDUFK\RIQHHGV
6XUYLYDOLVWKHILUVWSULRULW\,ZRXOGFRQVLGHUWKHEDVLFVRIOLIH
IRRGDQGVKHOWHU+RZFRXOGZHPDNHVPDUWSXUFKDVHVWREHFRPH
PRUHVHOIVXVWDLQLQJ"&DQZHSODQWDIRRGJDUGHQLQWKHEDFN\DUG"
&RXOGZHKDUYHVWQDWXUDOHQHUJ\IURPWKHHQYLURQPHQWUHF\FOHRXU
WUDVKSURGXFWVRUPRGLI\RXUKRPHVWRRSHUDWHPRUHSDVVLYHO\"
&RPIRUWVDUHQRWQHFHVVDU\H[SHQVHVEXWWKH\IXOILOORXUGHVLUHIRU
SOHDVXUHHQWHUWDLQPHQWDQGDFHUWDLQVWDQGDUGRIOLYLQJ:KDW
ZRXOGZHSXUFKDVHRUDFFXPXODWHRYHUWKHQH[W\HDU":RXOGZH
SXUFKDVHDODUJHU79RUVSHQGWKHPRQH\RQVSRUWVHTXLSPHQW"
:RXOGZHEX\DODPSIRUWKHOLYLQJURRPRUD\HDUVXSSO\RI
ODXQGU\GHWHUJHQW"7KHFKRLFHVZRXOGEHGLIILFXOWEXW,ZRXOG
IRFXVRQLWHPVWKDWSURYLGHORQJWHUPEHQHILWVDQGWKHPRVW
³IDPLO\YDOXH´
$UHFHQWSRVWRQ3UR%ORJJHUDVNHGXVZKDWZHZRXOGGRLIZHRQO\KDG
RQHPRQWKOHIWWREORJ,W¶VDQHIIHFWLYHSV\FKRORJLFDOWULFNXVHGWRUHYHDO :DVWHVDUHGLIIHUHQWIRUHYHU\RQHEXWWKHUHDUHPDQ\WKLQJVZKLFK
SULRULWLHVDQGJDLQIRFXV ZHFDQRIWHQHOLPLQDWHDQGVWLOOPDLQWDLQWKHVDPHVWDQGDUGRI
FRPIRUW7KHVHPLJKWLQFOXGHH[FHVVLYHGULQNLQJHDWLQJRXWDQG
,WIRUFHGPHWRUHFRQVLGHUKRZ,ZRXOGXVHP\WLPHDQGUHVRXUFHV VLPLODUDFWLYLWLHV:LWKRXWEX\LQJSRZHU\RX¶OOHLWKHUKDYHWRVWRFN
FDUHIXOO\WRSRVLWLRQDQDVVHWDEORJLQWKLVFDVHWRJLYHPHWKHEHVW XSRQ\RXUOLTXRURUILQGDZD\WRPDNHLW\RXUVHOI7KHVHZRXOGEH
ORQJWHUPUHWXUQVZLWKRXWDQ\IXWXUHLQSXW HDVLO\WRHOLPLQDWHHVSHFLDOO\ZLWKWKHH[WUDPRWLYDWLRQRIDRQH
\HDUOLPLW
1RWHWKDWWKLVLVQ¶WWKHFODVVLF³OLYHIRURQHPRUH\HDU´H[HUFLVH7KDW
RIWHQOHDGVWRODVWZLVKNLQGVRIDQVZHUVOLNHJLYLQJDZD\DOORIRXU :LWKDRQH\HDUWLFNLQJFORFNHYHU\SXUFKDVHGHFLVLRQLVVXGGHQO\
PRQH\RUPDNLQJSHDFHZLWKIDPLO\,QWKLVVFHQDULRWKHDVVHWKDVWROLYH EURXJKWLQWRTXHVWLRQ$QGLW¶VPRVWOLNHO\WKHVDPHTXHVWLRQHYHU\WLPH
RQIRUDORQJWLPHDIWHUZHUHPRYHRXULQSXW :LOOZHQHHGWKLVDQGRUZLOOLWHQKDQFHRXUOLIHLQVRPHZD\"
,WPDGHPHZRQGHUDERXWPRQH\DQGKRZZHFRXOGEHVWXVHWKLVH[HUFLVH ,SURSRVHWR\RXWKDWLW¶VWKHVDPHTXHVWLRQZHVKRXOGEHDVNLQJQRZ
WRWKLQNDERXWILQDQFLDOSULRULWLHV7KHZKROHLGHDEHDUVDUHPDUNDEOH ZLWKRXWGRRPVGD\ORRPLQJRQWKHKRUL]RQ
VLPLODULW\WRWKHFRQFHSWRIFUHDWLQJDWUXO\KDQGVRIISDVVLYHLQFRPH

2XUTXDOLW\RIOLIHZLOOWKDQNXVIRULW \RXZDQWDVZHOODVLWLVZHOOZULWWHQLQDZD\WKDWLVDQHDV\UHDGIRU\RXU
UHDGHUV
:KDWDUHVRPHRIWKHWKLQJV\RX¶GEX\LQWKHQH[WPRQWKV"
3KRWRE\ZZDUE\
%86,1(6623325781,7,(6:(%/2*
+RZ7R:LQ2YHU<RXU
%86,1(6623325781,7,(6:(%/2*
%ORJJHUV
,PSURYH<RXU%ORJ1RZ -81$0
-81$0
0DQ\SURIHVVLRQDOEORJJHUVWHQGWRKDYHDKDUGWLPHXSGDWLQJRU
LPSURYLQJWKHLUEORJLQRUGHUWRUHFHLYHWKHYHU\EHVWRXWRIWKHLUEORJ,
KDYHSXWWRJHWKHUDVPDOOOLVWRIVRPHWLSVWKDW\RXFDQIROORZLQRUGHUWR
LPSURYH\RXUEORJLQVWDQWO\DQGEHVXUHWRJHWWKHPRVWRXWRILWDWDOO
2SHQ)RUXP
WLPHV
7KHUHDUHPLOOLRQEORJVRQWKH,QWHUQHWDFFRUGLQJWR
)LUVWWKLQJ¶VILUVWLV\RXKDYHWRUHPHPEHUZK\\RXVWDUWHG\RXUEORJWR
7HFKQRUDWLDQGPLOOLRQSHRSOHUHDGLQJEORJVGDLO\
EHJLQZLWK7KHUHZDVDQXOWLPDWHJRDODQGUHDVRQDVWRZK\\RXVWDUWHG
DFFRUGLQJWR&RPVFRUH&OHDUO\HQJDJLQJZLWKLQIOXHQWLDO
WKLVEORJZKDW\RXZDQWHGWRDFKLHYHE\KDYLQJWKLVEORJVRZULWHWKDW
EORJJHUVFDQEHDUHDOERRQWR\RXUEXVLQHVVLI\RXFDQZLQ
JRDODQGUHDVRQGRZQLQIURQWRI\RXIRUIXWXUHXVH
WKHPRYHUWRZDUGV\RXUEUDQGDQGSHUVXDGHWKHPWR
HYDQJHOL]H\RXUSURGXFW
.QRZ\RXUDXGLHQFH5HJDUGOHVVRI\RXUJRDO\RXUEORJFDQ¶W
VXUYLYHZLWKRXWDQDXGLHQFH7KHVHDUHWKHSHRSOHZKRDUH
5DWKHUWKDQRIIHULQJ\RXUEORJJHUVVDOHSULFHVRUIUHHELHVWU\RIIHULQJXS
JRLQJWRVRDNXS\RXUFRQWHQWDQGKHOS\RXDFFRPSOLVK
VRPHH[FOXVLYHVWRWKHP2WKHUEORJJHUVUHDGHUVZLOOEHWKULOOHGDWWKH
ZKDWHYHULWLV\RX¶UHDIWHU$QGEHFDXVHRIWKDWLW¶VLQ\RXU
WKRXJKWWKDWWKH\ZHUHDPRQJWKHILUVWWRUHDGDERXWDFHUWDLQVWRU\RU
EHVWLQWHUHVWWRUHDOO\NQRZZKRWKH\DUH6PDOO%L]7UHQGV
RIIHURQ\RXUVLWH
5HJDUGOHVVRIEHLQJH[FOXVLYHO\RQOLQHHYHU\EORJJHUKDVDYRLFHVRILQG
$OZD\VPDNHVXUHWKDW\RXKDYHDYHU\LQWHUHVWLQJVWRU\WRWHOOWKDWZLOO
\RXURZQXQLTXHYRLFH2QFH\RXKDYHIRXQG\RXUXQLTXHYRLFHWKDW
QRWRQO\FDSWLYDWHWKHDWWHQWLRQRI\RXUUHDGHUVEXWZLOODOVRFUHDWHDVRUW
ZRUN¶VIRU\RXDQG\RXUUHDGHUV\RXZLOOZDQWWRDOZD\VVWLFNWRWKDW
RIERQGEHWZHHQ\RXDQG\RXUUHDGHUV7KHPRUHWKH\IHHOIRU\RXDQG
YRLFHDVFORVHDV\RXFDQ
IHHOWKDWWKH\KDYHLQFRPPRQZLWK\RXWKHPRUHWKH\ZLOOUHWXUQWR\RXU
VLWH
<RXUUHDGHUVGRQ¶WMXVWZDQWLQIRUPDWLRQWKURZQLQWKHLUIDFHWKH\DOVR
OLNHWRUHDGDERXWVWRULHVLQWHUHVWLQJDQGKHDUWIHOWVWRULHVRUHYHQVWRULHV
$QGODVWEXWQRWOHDVWLVEHVXUHWREHDYDLODEOHWR\RXUUHDGHUVDQGIHOORZ
WKDWZLOOPDNHWKHPFKXFNOHIURPWLPHWRWLPHVRDOZD\VEHVXUHWR
EORJJHUVLQWKHHDVLHVWZD\VSRVVLEOH7KHODVWWKLQJ\RXZDQWLVDIHOORZ
SURYLGHWKHPZLWKWKHVHVWRULHVUDWKHUWKDQMXVWDEXQFKRIPXPEOH
EORJJHURURQHRI\RXUUHDGHUVWRJHWLUULWDWHGDQGVWRSYLVLWLQJ\RXUVLWH
MXPEOHLQIRUPDWLRQ
EHFDXVHWKH\FDQQHYHUJHWDKROGRI\RX
$QGLQWKHHQGUHPHPEHUWKDW\RXFDQQHYHUHGLW\RXUSRVWVHQRXJK
$IWHUZULWLQJDSRVWJREDFNDQGHGLWDIHZWLPHVDQGSURRIUHDGDIHZ
WLPHVWRPDNHVXUH\RXKDYHDOOWKHLQIRUPDWLRQDQGGHWDLOVLQWKHUHWKDW

6(7+¶6%/2* WROHDUQSUDFWLFDOKDQGVRQWHFKQLTXHVWRJHWSHRSOHWDONLQJDERXW\RX
WKHQH[WGD\
:LQQLQJ
-81$0 2XUOLQHXSRIVSHDNHUVLQFOXGHVZRUGRIPRXWKVXSHUJHQLXVDQG
*HYDOLD¶V%UDQG0DQDJHU'DQD9RJHO'DQDZLOOVKDUHKRZWRXVHGLUHFW
$WRGGOHUZDQWVZKDWVKHZDQWVQRZ7KDW¶VDZLQ UHVSRQVHDQGVRFLDOPHGLDWRFRQQHFWZLWKFRQVXPHUV,QKHUOLYH
SUHYLHZ'DQDRIIHUVDIHZLGHDVRQKRZVKHGRHVLW
$OLWWOHODWHUZKHQZH¶UHPRUHPDWXUHZHPLJKWGHILQHZLQQLQJDV
JHWWLQJZKDWZHZDQWDWWKHH[SHQVHRIVRPHRQHHOVH,ZLQZKHQ\RX $QGFKHFNRXWRXU<RX7XEHSDJHWRVHHDOORIRXUVSHDNHULQWHUYLHZV
ORVH$QG\HVZLQQLQJVWLOOPHDQVQRZQRWODWHU
$GHPDJRJXHFDUHVVRPXFKDERXWZLQQLQJWKDWKH¶GUDWKHUZUHFNWKH 6KDUH
V\VWHPLWVHOIWKDQORVH,W¶VRND\KHEHOLHYHVWRURRWIRUWKHIDLOXUHRIWKH
UHSXEOLFRUWRGHVWUR\FLYLOLW\RUGHPRFUDF\LILWOHDGVWRVRPHWKLQJWKDW
FRXOGEHFDOOHGDZLQ
:KDWKDSSHQVZKHQ\RXGHILQHDZLQDVJHWWLQJFORVHUWRVRPHRQHZKR
ZDQWVWKHVDPHWKLQJ"2UZKHQ\RXGHILQHLWDVLPSURYHPHQWRYHUWLPH"
2ULQFUHDWLQJWUXVW" %86,1(6623325781,7,(6:(%/2*
:KDWLIWKHZLQLVWKHDELOLW\WRJLYHDWUXHJLIW" *HW2WKHUV7R3URPRWH<RXU%L]
-8130
'$01,:,6+,¶'7+28*+72)7+$7
*HYDOLD¶V'DQD9RJHORQKRZWR
XVHVRFLDOPHGLDWRFRQQHFWZLWK
OR\DOIDQV²OLYH:RUGRI0RXWK
6XSHUJHQLXVSUHYLHZ
-8130
'HDG$SSOH7RXUVRUJDQL]HVWRXUVWRWKHVLWHVZKHUHIDPRXV1HZ
<RUNHU¶VKDYHGLHGRUZKHUH1HZ<RUN&LW\GHDWKVKDYHWDNHQSODFH
6PDOOEL]WHFKQRORJ\FRPVSRNHZLWK'UHZ5DSKDHOIRXQGHURI'HDG
$SSOH7RXUVDERXWKLVFRPSDQ\¶VJURZWKDQGRQOLQHPDUNHWLQJ
3KRWRE\'HDG$SSOH7RXUV
:H¶UHEULQJLQJWRJHWKHUDPD]LQJPDUNHWHUVIRU:RUGRI0RXWK

%86,1(6623325781,7,(6:(%/2*
<DUPXONH7RR+RW"
-8130
%86,1(6623325781,7,(6:(%/2*
1LFKH%L](PHUJHQF\3HW
7UDQVSRUW
-8130
$FFRUGLQJWRWKH1HZ<RUN'DLO\1HZVWKLVEDVHEDOOFDSLVWRWDOO\
NRVKHU
$0DQKDWWDQPDQKDVLQYHQWHGZKDWKHFDOOVWKH³\DPXONDS´D
\DUPXONHZLWKDEULPOLNHDEDVHEDOOFDSVRUHOLJLRXVPHQFDQJHWVRPH
VKDGH
6HWK0RVOHUZKRLV-HZLVKEXWQRWVWULFWO\REVHUYDQWZDVZDONLQJ &KHU\O%UDG\RZQHURI9HW&DUH([SUHVVVDLGVKHIRXQGHGWKH
WKURXJK&HQWUDO3DUNWZRVXPPHUVDJRZKHQLQVSLUDWLRQVWUXFNQHDUWKH %UDGHQWRQEXVLQHVVLQ1RYHPEHUEHFDXVHWKHUHZDVDELJQHHGIRU
*UHDW/DZQ¶VEDOOILHOGV HPHUJHQF\WUDQVSRUWDWLRQIRUVLFNDQGLQMXUHGDQLPDOVUHSRUWV
%UDGHQWRQFRP
+HVDZ2UWKRGR[NLGVWKURZLQJIULVEHHVDQGWRVVLQJVRIWEDOOVDOO
ZHDULQJ\DUPXONHVWKDWRIIHUHGQRVKDGHIURPWKHVXQ $IWHUKHOSLQJDIULHQGZKRKDGUXQRYHUDGRJ%UDG\EHJDQWR
ZRQGHUZKDWVKHZRXOGKDYHGRQHLIWKHDQLPDOKDGVXUYLYHG
³,QRWLFHGWKH\ZHUHKRWDQGJHWWLQJVXQEXUQHG´VDLG0RVOHUDFKDUWHU DQGQHHGHGHPHUJHQF\FDUH6KHUHPHPEHUHGDEXVLQHVVSODQ
VFKRROEXVLQHVVPDQDJHUZKROLYHVRQWKHXSSHU(DVW6LGH7KHUHPXVW VKH¶GZULWWHQLQDZRPHQ¶VVWXGLHVFRXUVHLQFROOHJHIRUDQ
EHDZD\WRZHDUD\DUPXONHDQGVXQVKDGLQJEULPDWWKHVDPHWLPH HPHUJHQF\YHWHULQDULDQWUDQVSRUW
0RVOHUVDLGKHWKRXJKW
³/LWHUDOO\OLJKWEXOEVVWDUWHGJRLQJRII´%UDG\VDLG
+HFXWXSDQROGEDVHEDOOFDSDVDSURWRW\SHWKHQVHDUFKHGIRUD
PDQXIDFWXUHU ,QODWHVKHOHIWKHUMRESXUFKDVHGDURRP\ZKLWHYDQ
EUDQGHGZLWK9HW&DUH([SUHVVORJRVDQGHPHUJHQF\VXSSOLHV
³,WFRXOGEHDWUHQG\WKLQJWRZHDUEXW,WKLQNLWZLOOSUREDEO\DSSHDOWR VXFKDVDVWUHWFKHUDQGWUDQVSRUWFDJHV
SHRSOHZKRDUHDOUHDG\ZHDULQJ\DUPXONHV´0RVOHUVDLG³+RSHIXOO\
ZRUGRIPRXWKZLOOJHWLWJRLQJ´ %UDG\KDVWUDQVSRUWHGDERXWSDWLHQWVLQERWKHPHUJHQF\
DQGQRQHPHUJHQF\VLWXDWLRQVVLQFHVKHEHJDQWDNLQJ
7RPDNHVXUHWKDWWKHFDSPHWUHOLJLRXVVWDQGDUGVKHFRQVXOWHGZLWKWZR SDWLHQWVLQ1RYHPEHU6KHDOVRSURYLGHVOHVVRQVRQFDWDQG
UDEELVRQH2UWKRGR[DQGWKHRWKHUFRQVHUYDWLYH%RWKJDYHKLPWKHJR GRJ&35
DKHDG
³,UHDOO\WKLQNWKLVLVZKDW,¶PVXSSRVHGWREHGRLQJ´VKH
³:KHQ\RX¶UHWDONLQJDERXW\DUPXONHV\RXDUHWDONLQJDERXWWKRXVDQGV VDLG³,W¶VUHDOO\EHHQUHZDUGLQJ´
RI\HDUVRIWUDGLWLRQ´0RVOHUVDLG³%XWWKLVKDVDSUDFWLFDOSXUSRVH´
:LWKUHJLVWHUHGSHWVLQ0DQDWHH&RXQW\DQG
3KRWRE\'DLO\1HZV UHJLVWHUHGSHWVLQ6DUDVRWD&RXQW\RQHLQWKUHHZLOOKDYHDQ
HPHUJHQF\WKLV\HDU7KLVLVDKXJHQHHGDQGVKRXOGSURYLGH

PRUHWKDQHQRXJKEXVLQHVVWRNHHSKHUJRLQJ%UDG\VDLG FXVWRPWDLORUHG:LWK5HOD[2DVLV\RXJHWD³WXUQNH\´
RSHUDWLRQIXOO\VHWXSDQGUHDG\WRPDNHPRQH\
7KHRQO\SUREOHP"
3KRWRIURP6SD&DSVXOH
³3HRSOHGRQ¶WNQRZLWH[LVWV´VKHVDLGQRWLQJWKDWVKHKDV
VSRNHQWRPDQ\YHWHULQDULDQVLQWKHDUHDDQGLVEHJLQQLQJWR
UHFHLYHUHIHUUDOEXVLQHVVIURPWKHP
3KRWRE\%UDGHQWRQFRP
%86,1(6623325781,7,(6:(%/2*
+HOOR5HZLQG
-8130
%86,1(6623325781,7,(6:(%/2*
7KH6SD&DSVXOH5HOD[2DVLV
-8130
7RGG6PLWK-HVV/LQDQG*UHJ:RQJSDUWQHUVDWDGHVLJQILUPLQ1HZ
<RUNVWDUWHG+HOOR5HZLQGLQ)HEUXDU\WRKHOSYLFWLPVRIVH[WUDIILFNLQJ
LQ1HZ<RUN
7KH6SD&DSVXOHLVDQRQLQYDVLYHWHFKQRORJ\WKDWSURYLGHVWUHDWPHQWV
IRUQHDUO\DQ\EHDXW\KHDOWKILWQHVVZHOOQHVVDQGVSRUWVIDFLOLW\7KH %ORRPEHUJ%XVLQHVVZHHNUHSRUWVWKDWWKHFRPSDQ\PDNHVFXVWRP
V\VWHPDLGVLQDYDULHW\RIDUHDVVXFKDVZHLJKWORVVPDVVDJHRUDQWL VOHHYHVIRUODSWRSVRXWRIROGWVKLUWVEXWLWVXQGHUO\LQJPLVVLRQLVWR
DJLQJ KHOSVH[WUDIILFNLQJYLFWLPVSUHSDUHIRUMREV
7KHPDFKLQHZKLFKXVHVDVHFUHWMHWWHFKQRORJ\LVEXLOWZLWKVRPHRIWKH 7KH\GRQ¶WUHDOO\KDYHWKHMREVNLOOVRU(QJOLVKODQJXDJH
PRVWDGYDQFHGPDWHULDOVDYDLODEOHFUHDWLQJSRVLWLYHH[SHULHQFHVIRUERWK WUDLQLQJWKDWWKH\QHHG´VD\V/LQ³$ORWRIWKHPUHWXUQWR
WKHXVHUDQGWKHRSHUDWRU SURVWLWXWLRQ´
7KLVXQLTXHV\VWHPLVDOVRDYDLODEOHLQWKHIRUPRIDIUDQFKLVH :RUNLQJZLWKWKHQRQSURILW5HVWRUHWKHJURXSKDVKLUHG
RSSRUWXQLW\6HWXSDVDPDOOUHWDLONLRVNEXVLQHVVHQWUHSUHQHXUVDUH WKUHHZRUNHUVDQGKDVDZDLWLQJOLVWRIDWOHDVWILYH
ILQGLQJWKDWIURPWKHPRPHQWWKHGRRUVRSHQWKHPRQH\LVFRPLQJLQ
%HVWRIDOOQRH[SHULHQFHUHTXLUHG 'HPDQGIRUWKHODSWRSVOHHYHV²ZKLFKVHOORQOLQHIRU
²KDVRXWSDFHGWKHLUH[SHFWDWLRQVUHWDLOHUVDQGDPDMRU
5HOD[2DVLVLVDXQLTXHEXVLQHVVRSSRUWXQLW\,WLVDFRQFHSW FRPSXWHUPDQXIDFWXUHUKDYHDVNHGWRFDUU\WKHP6PLWK
RIIHULQJ6SD&DSVXOH0DVVDJHZLWKDYDULHW\RIZHOOQHVVDQG VD\V
VSDUHODWHGSURGXFWV
:KDWVWDUWHGRXWDVDVLGHSURMHFWKDVEHFRPH³DEHDVWRILWV
5HOD[2DVLVLVEHFRPLQJPRUHSRSXODUDVWKHPDUNHW RZQ´VD\V6PLWKDQGWKHJURXSLVDFWLYHO\ORRNLQJIRU
GHPDQGIRUZHOOQHVVLQFUHDVHV1HZEXVLQHVVHVVRIIHULQJ VHSDUDWHRIILFHVSDFHDQGZD\VWRH[SDQGWKHRSHUDWLRQ
UHOD[DWLRQGHVWUHVVLQJVWUHVVUHOLHIDQGSURGXFWVDUH
RSHQLQJHYHU\GD\QDWLRQZLGHDQGDEURDG-RLQWKH 3KRWRE\%ORRPEHUJ%XVLQHVVZHHN
5HOD[2DVLVWHDPVRWKDW\RXFDQEHDVVXUHGWKDWQRWKLQJLV
OHIWWRFKDQFH(YHU\GHWDLORIWKHEXVLQHVVLVILHOGWHVWHGDQG

PDUNHWHGDQGVROGKHUGRJIRRG³,XVHGWD[LVWRPDNH
GHOLYHULHV´VKHVD\V
)RXU\HDUVODWHUVKHRXWJUHZKHUDSDUWPHQWDQGQHHGHGD
%86,1(6623325781,7,(6:(%/2* IDFWRU\6LQFHUHDOHVWDWHLQ1HZ<RUNZDVWRRH[SHQVLYHVKH
UHWXUQHGKRPHWR0XVNHJRDVXEXUERI0LOZDXNHHWR
)DVKLRQLVWD7XUQHG3HW)RRG H[SDQGKHUEXVLQHVVLQ
0RJXO ,PDJHIURP6WHOOD &KHZ\¶V

-8130
%86,1(6623325781,7,(6:(%/2*
<RXQJ)RRG(QWUHSUHQHXUV
0DNH7KHLU)XWXUH%\+DQG
-8130
061%&
0DULH0RRG\¶VFDUHHUZHQWWRWKHGRJV6SHFLILFDOO\WRWZR
SRRFKHV6WHOODDWHUULHUEOHQGDQG&KHZ\DQ$LUHGDOH6KDU
3HLPL[6WHOODDQG&KHZ\OHGWKLVIDVKLRQUHSWROHDYHWKH
ZRUOGRIGHVLJQDQGVWDUWKHURZQGRJIRRGFRPSDQ\
6LQFHWKHUHZHUHQ¶WDQ\FRPPHUFLDOUDZGRJIRRGVDYDLODEOH
0RRG\GHFLGHGWRPDNHPHDOVIRU&KHZ\KHUVHOI
6KHFUHDWHGDGLHWRIUDZPHDWDQGERQHVVXSSOHPHQWHGE\
XQFRRNHGYHJHWDEOHVDQGIUXLWV±DPHQXEDVHGRQZKDWWKH
GRPHVWLFGRJ¶VDQFHVWRUVFR\RWHVDQGZROYHVHDWLQWKHZLOG
0RRG\XVHGIUHHUDQJHDQGDQWLELRWLFDQGKRUPRQHIUHH
PHDWVDVZHOODVRUJDQLFSURGXFHEXWQRJUDLQV±DNH\
LQJUHGLHQWLQPDQ\FRPPHUFLDOGRJIRRGV <RXQJFROOHJHHGXFDWHG,QWHUQHWVDYY\XQHPSOR\HGDQGKRSLQJWRILQG
DSODFHLQWKHIRRGZRUOGRXWVLGHWKHWUDGLWLRQDOURXWH)DELDQD/HHLV
1RWRQO\GLG&KHZ\¶VKHDOWKLPSURYHEXWKHEHFDPHVR W\SLFDORIWKHFLW\¶VGR]HQVRIQHZIRRGHQWUHSUHQHXUV
KHDOWK\WKDWZKHQ0RRG\DGRSWHG6WHOODD\HDUODWHUVKH
EHJDQWRSUHSDUHIRRGIRUKHUWRR7KDWJRW0RRG\ZKR 7KH1HZ<RUN7LPHVUHSRUWVWKDWDVWKHQH[WJHQHUDWLRQRIFRRNVFRPHV
GLGQ¶WHYHQFRRNIRUKHUVHOIWKLQNLQJDERXWKHUIHOORZDQLPDO RIDJHLWVHHPVWKDWPDQ\PLJKWE\SDVVUHVWDXUDQWNLWFKHQVDOWRJHWKHU
ORYHUV ,QVWHDGWKH\VHHWKHPVHOYHVGULYLQJWUXFNVIXOORIDUWLVDQDOFKHHVH
DURXQGWKHFRXQWU\IRXQGLQJRUJDQLFEUHZHULHVEDUWHULQJYHJDQSkWpV
³,ISHRSOHNQHZKRZJRRGWKLVGLHWZDVIRUWKHLUSHWVDQGLILW IRUJUDVVIHGORFDOEHHIRUPRVWRIWHQPDNLQJLWELJLQEDNLQJDVWKH
ZDVQ¶WWKDWGLIILFXOWIRUWKHPWRSURYLGHLWWKHQ,WKRXJKWWKDW QH[W0DJQROLD%DNHU\
DORWRISHRSOHPLJKWGRLW´VKHVD\V³,ZDQWHGWRFUHDWHD
IRRGWKDWKDGZKDW¶VEHVWDERXWDUDZGLHWEXWZDV $VSLULQJFRRNVDQGWKHDGYHQWXURXVHDWHUVZKRORYHWKHP
FRQYHQLHQWDQGQRWGDQJHURXV´ FRPHIDFHWRIDFHDWPDUNHWVOLNHWKLVRQHZKLFKDUHRSHQLQJ
DQGH[SDQGLQJDWDEULVNSDFH
$UPHGZLWKDORDQIURPKHUIDWKHUVKHXVHGWKH
PRQH\WRSXUFKDVHIUHH]HUVIRURIWKHWRSSHWVWRUHVLQ 7KH%URRNO\Q)OHDWKH+HVWHU6WUHHW)DLUDQGWKHVRRQWR
1HZ<RUN&LW\0RRG\VWDUWHG6WHOOD &KHZ\¶VLQIURP UHRSHQ1HZ$PVWHUGDP0DUNHWKDYHEHFRPHWDVWLQJ
WKHNLWFKHQRIKHU0DQKDWWDQDSDUWPHQW:LWKRQO\KHUGRJV GHVWLQDWLRQVZKHUHKDQGPDGHIRRGLVDVPXFKRIDIHWLVKDV
DVFRZRUNHUVDQGWDVWHWHVWHUV0RRG\KDQGSUHSDUHG YLQWDJH5D\%DQVRUEDUJHOORSLOORZFDVHV

7KHDOOIRRG*UHHQSRLQWPDUNHWZKLFKLVRSHQWRKRPHFRRNV %URZQLHLFHFUHDPZDVERUQ²RQHRI%HQ -HUU\¶VPRVW

RIDOOVWULSHVLVRQHVWRSVKRSSLQJ0H[LFDQ,QGLDQWDFRV SRSXODUSURGXFWV
DUWLVDQDOVRGDSRSURRIJURZQSURGXFHH[RWLFFKLOLSHSSHUV
ORQJEULQHGSLFNOHV7DLZDQHVHVWUHHWIRRGDQGUHWUR 6RGRQ¶WVWLFNDODEHO³EDGWKLQJ´RQZKDWHYHUKDSSHQVWR\RX
6RXWKHUQVQDFNVXQGHURQHURRI WKDW\RXGRQ¶WOLNHLQLWLDOO\:KRNQRZVWKDWPD\EHWKHYHU\
WKLQJWKDW\RXQHHGWREUHDNRXWLQWRDEULOOLDQWQHZIXWXUH
(DFKYHQGRUKDGSDLGWRIRUDWDEOHZLWKKDOIWKH
PRQH\JRLQJWRWKHFKXUFKDQGKDOIWR0V.LP7KHFDVKWKH\ 3KRWRE\FDUROLQDQLVVDQV
HDUQHGZDVWKHLUVWRNHHS$WDQLFHSRSRUDQ
HPSDQDGDWKHPDUJLQVRQPDQ\SURGXFWVVHHPHGKLJKEXW
VRPHRIWKHYHQGRUVZKRKDYHEHHQRSHUDWLQJZLWKRXWRIILFLDO
FHUWLILFDWLRQPD\VRRQVHHWKHLUSURILWVVKULQN
%86,1(6623325781,7,(6:(%/2*
6WRS8VLQJ7KH³%DG7KLQJ´
/DEHO
-81$0
:KHQHYHUVRPHWKLQJKDSSHQVWKDWLVQRWLQOLQHZLWKRXUGHVLUHVZHJHW
GLVDSSRLQWHG:HVWLFNWKHODEHO³EDGWKLQJ´RQLW$QGZKHQZHGRZH
H[SHULHQFHLWDVVXFK,QWUXWKZHGRQRWNQRZZKHWKHUVRPHWKLQJ
XQH[SHFWHGLV³JRRG´RU³EDG´DQGZHPD\QHYHUNQRZZULWHV6XFFHVV
PDJD]LQH
:KHQ*UH\VWRQ%DNHU\ILOOHGLWVILUVWRUGHUIRUEURZQLHVIRU
%HQ -HUU\¶VWKHWKLQEURZQLHVKHHWVVWXFNWRJHWKHULQ
SRXQGOXPSVDQGFRXOGQRWEHVHSDUDWHG
<RXFRXOGFHUWDLQO\ODEHOWKLVD³EDGWKLQJ´
%XW%HQSRQGHUHGZKDWWRGRDQGXOWLPDWHO\&KRFRODWH)XGJH

-XQH
7RGD\·V7DEEORLG
'$01,:,6+,¶'7+28*+72)7+$7
6HQGDQDQQLYHUVDU\FDUGWRD
FXVWRPHU
-81$0
0HPEHUVRIWKH$PHULFDQ&KHPLFDO6RFLHW\JHWWKLVJUHDWFDUGRQWKHLU
WKDQQLYHUVDU\:LWKDFRROFKHPLVWU\MRNHRIFRXUVH 1HRQ
:KHQ\RXUFXVWRPHUVVHQG\RXFKHFNDIWHUFKHFN\RXQHHGWRWDNHD
PRPHQWDQGWKDQNWKHP7KH\PD\QRWKDYHQRWLFHGWKDWLWZDV\HDUV
EXWWKH\ZLOOQRWLFHWKDW\RXQRWLFHG
$SSUHFLDWLRQLVDSSUHFLDWHG
6KDUH

817(03/$7(5
7KHRULJLQDO%D\$UHDVWDUWXS
-81$0
%HIRUH*RRJOH$GREHH%D\&LVFR<DKRRDQGRWKHUWHFKJLDQWVSXW
6LOLFRQ9DOOH\RQWKHPDSWKH%D\$UHDZDVKRPHWRDQHDUOLHUHTXDOO\
UHPDUNDEOHVWDUWXS«

7KH6DQ)UDQFLVFRHUV WKHQRUPDOILYHVWHSRUVHYHQVWHSGURSDIWHUWKHVQDSSLQJWKHEDOOWKH
:&2XVHGDWKUHHVWHSGURSJLYLQJWKHGHIHQVHOHVVWLPHWRUXVKWKH
7KHWHDPZDVGXEEHGWKH2ULJLQDO%D\$UHD6WDUWXSE\5RQQLH/RWWFR SDVVHUEXWDOVRPHDQLQJWKHTXDUWHUEDFNKDGOHVVWLPHWRUHDGWKH
IRXQGHURIWKHSULYDWHHTXLW\ILUP+5-&DSLWDO/RWWDOVRKDSSHQHGWREH GHIHQVH5DWKHUWKDQMXVWWRVV0RQWDQDLQWRWKHILUH:DOVKJUDGXDOO\
WKHVWDUWLQJOHIWFRUQHUEDFNIRUWKH1LQHUVWKDW\HDU$OWKRXJKKHKDG ZRUNHGWKH\RXQJTXDUWHUEDFNLQWRWKHVWDUWLQJUROHGXULQJWKHILUVWWZR
PXFKPRUHVXFFHVVDVDIRRWEDOOSOD\HUIRXUWLPH6XSHU%RZOFKDPSLRQ VHDVRQV7REXLOGFRQILGHQFH0RQWDQDRQO\SOD\HGFHUWDLQGRZQVDQG
HLJKWWLPH$OO3URVHOHFWLRQWKDQDVD9&+5-ZHQWEHOO\XSLQ ZDVOLPLWHGWRDVHWRISOD\V:DOVKVFULSWHGLQSUDFWLFHZLWKDKLJKFKDQFH
DQGZDVPHUFLIXOO\ERXJKWRXWE\D6ZLVVEDQN/RWWZDVFRPSOHWHO\ RIVXFFHVV
FRUUHFWLQKLVDVVHVVPHQW/RRNLQJEDFN6DQ)UDQFLVFRVKRZHGDOORIWKH
TXDOLWLHVURXWLQHO\DVVRFLDWHGZLWKJUHDWHQWUHSUHQHXULDOYHQWXUHV :DOVK¶VDWWLWXGHZDVQRWWRGUDIWJUHDWSOD\HUV5DWKHULWZDVWRGUDIW
SOD\HUVWKDWKHFRXOGGHYHORSLQWREHLQJJUHDW%HVLGHV0RQWDQD:DOVK
9LVLRQDU\&(2 GUDIWHGDQDVWRQLVKLQJRISOD\HUVLQWKHODWHURXQGVZKRZRXOGJRRQWR
EH$OO3URVRU+DOORI)DPHUVLQFOXGLQJRYHUDOOGUDIWVHOHFWLRQLQ
,QWKHHUVKLUHG%LOO:DOVKDVKHDGFRDFK2QWKHVXUIDFHWKHUH SDUHQWKHVLV'ZLJKW&ODUN:5
ZDVQRWKLQJWRVXJJHVWWKDWKHZRXOGEHVXFFHVVIXO:DOVKGLGQRWKDYH
DQ\1)/KHDGFRDFKLQJH[SHULHQFHDQGZDVLQKHULWLQJUHFRUGIURP WK0LFKDHO&DUWHU'7VW-RKQ7D\ORU:5WK6WHYH:DOODFH27
WKHSULRU\HDU'HVSLWHEHLQJWKHODVWSODFHWHDPLQWKHOHDJXH6DQ VW5RJHU&UDLJ5%WK&KDUOHV+DOH\'(WKDQG-HVVH
)UDQFLVFRGLGQRWHYHQRZQDILUVWURXQGGUDIWSLFNKDYLQJWUDGHGLWD 6DSROX2*&WK
\HDUHDUOLHUWRDFTXLUHDQDJLQJDQGRYHUWKHKLOOUXQQLQJEDFNQDPHG2-
6LPSVRQHYHUKHDUGRIKLP"7KHRQO\SHUVRQWKDWVXVSHFWHGWKDW:DOVK $ODVWLQJOHJDF\
PLJKWEHVXFFHVVIXOZDV3DXO%URZQDIWHUZKRPWKH&OHYHODQGIUDQFKLVH
LVQLFNQDPHG:DOVKVHUYHGIRUHLJKW\HDUVDVDVVLVWDQWFRDFKDQG 8QGHU:DOVKWKH1LQHUVZHQWIURPWZRZLQVLQWKHVDPHUHFRUGDV
RIIHQVLYHFRRUGLQDWRUIRUWKH&LQFLQQDWL%HQJDOVXQGHU%URZQWKHKHDG WKHSUHYLRXVVHDVRQWRLQ7KH:&2RIIHQVHIORXULVKHGLQ
FRDFK'XULQJWKLVWLPH:DOVKH[SHULPHQWHGZLWKDV\VWHPWKDWZRXOG :DOVK¶VILUVWWZRVHDVRQVEXWWKHGHIHQVHZDVDE\VPDO:DOVK¶VVROXWLRQ
ODWHUEHIDPRXVO\FRLQHGWKH:HVW&RDVW2IIHQVH:&27KH:&2UHOLHG ZDVQRWWRXSJUDGH,WZDVWRUHGR,QWKHGUDIWWKUHHRI6DQ
RQDKRUL]RQWDOSDVVLQJJDPHZKHUHUXQQLQJEDFNVZHUHXWLOL]HGPDLQO\ )UDQFLVFR¶VILUVWIRXUSLFNVZHUHGHIHQVLYHEDFNVLQFOXGLQJ5RQQLH/RWW
DVUHFHLYHUVDQGUHFHLYHUVUDQVKDOORZRUVODQWURXWHVDVRSSRVHGWRGHHS DQGDOORIWKHPZRXOGVWDUWWKDWVHDVRQ:DOVKEURXJKWLQDVOHZRI
SDWWHUQV7KHLQWHQWZDVWRJUDGXDOO\PRYHWKHEDOOGRZQWKHILHOGDQG GLVFDUGHGEXWVDYY\YHWHUDQVWRPHQWRUWKHURRNLHVOLNH'ZLJKW+LFNV
³WDNHZKDWWKHGHIHQVHJDYH\RX´7KH:&2PLUURUHGWKHER[LQJVWUDWHJ\ VSHQWWKHSUHYLRXVVHDVRQVWRFNLQJVKHOYHVDWDKHDOWKIRRGVWRUH)UHG
RI:DOVKZKRPDVDQDPDWHXUSXJLOLVWZRXOGWU\WRZHDUGRZQ 'HDQOHWJRIURPKLVSUHYLRXVWHDPIRULQGLVFUHWLRQVVXFKDVVPRNLQJLQ
RSSRQHQWVDVRSSRVHGWRMXVWNQRFNWKHPRXW7KLVDWWLWXGHZDVLQVKDUS WKHZHLJKWURRPDQG-DFN³+DFNVDZ´5H\QROGVZKRHDUQHGKLV
FRQWUDVWWRWKHEUXWHDQGVPDVKPRXWKDSSURDFKWKDWPRVW1)/WHDPV QLFNQDPHDIWHUKDFNLQJDSDUWKLV-HHSDIWHUDORVVLQFROOHJH,QWKH
XVHGPRVWQRWLFHDEO\3DXO%URZQ%URZQERWKGLVOLNHGDQGIHDUHGWKH 1LQHUVZHUHDQGPHWSHUHQQLDOSRZHUKRXVH'DOODVLQWKH1)&
RIIHQVHDQGKHZDQWHGWRZLQZLWKVWUHQJWKQRWVWUDWHJ\%XWIHDULQJ FKDPSLRQVKLSIRUWKHULJKWWRJRWRWKH6XSHU%RZO7UDLOLQJZLWK
WKDWWKH:&2PLJKWZRUN%URZQXVHGKLVLQIOXHQFHWRGLVVXDGHRWKHU VHFRQGVUHPDLQLQJLQWKHJDPHDQGWKHEDOORQWKH'DOODV\DUGOLQH
WHDPVIURPLQWHUYLHZLQJ:DOVKIRUKHDGFRDFKLQJSRVLWLRQV,WZDVQ¶W :DOVKFDOOHGIRU6SULQW2SWLRQ5LJKWDVWDSOHRIWKH:&2$IWHUWDNLQJ
XQWLOIRXU\HDUVDIWHU%URZQUHWLUHGWKDW:DOVKILQDOO\JRWKLVFKDQFH WKHVQDS0RQWDQDZDVWRUROOWRWKHULJKW7KLVZRXOGJLYHKLPWKHWLPH
WRHOXGHWKHPDVVLYH'DOODVGHIHQVLYHOLQHDQFKRUHGE\WKHIHDUHG(G
7KHUHOHQWOHVVSXUVXLWRISURILWZLWKRXWUHJDUGIRUDODFNRI ³7RR7DOO´-RQHV&RPLQJDFURVVWKHPLGGOHRIWKHHQG]RQHZDV'ZLJKW
UHVRXUFHV &ODUN5DWKHUWKDQILUHDSDVVEHWZHHQGHIHQGHUV0RQWDQDVWDUWHGEDFN
SHGDOLQJWRZDUGVWKHVLGHOLQH7KLQNLQJ0RQWDQDZRXOGEHVDFNHGRU
7KLVLVWKHGHILQLWLRQRIHQWUHSUHQHXUVKLSDFFRUGLQJWRDXQLYHUVLW\ WKURZWKHEDOODZD\WKH'DOODVVHFRQGDU\WHPSRUDULO\UHOD[HGDQGORVW
SURIHVVRUZKRP,KDGWKHSULYLOHJHWROHDUQIURP,GRQRWZKROO\DJUHH VLJKWRI&ODUNZKRGULIWHGWRWKHEDFNFRUQHURIWKHHQG]RQH0RQWDQD
ZLWKWKHIRUPHUEXW,GRZLWKWKHODWWHU:DOVKUHDOL]HGWKDWWKH1LQHUV VRIWO\ORIWHGDSDVVLQWKHDLUDQGWKHUHVXOWLQJWRXFKGRZQSDVVKDVEHHQ
FRXOGQRWFRPSHWHLQWHUPVRIVL]HDQGVWUHQJWKZLWKRWKHUWHDPV IRUHYHUHQVKULQHGLQ1)/ORUHDV7KH&DWFK7ZRZHHNVODWHUWKH1LQHUV
)XUWKHUKHXQGHUVWRRGWKDWWKHVHTXDOLWLHVZHUHDWDSUHPLXPZKHQLW ZRXOGJRRQWREHDWWKH&LQFLQQDWL%HQJDOV:DOVK¶VIRUPHUWHDPLQ
FDPHWRGUDIWLQJSOD\HUV6R:DOVKORRNHGIRUSOD\HUVZLWKDQDOWHUQDWH 6XSHU%RZO;9,
VNLOOVHW+HGUDIWHGSOD\HUVZKRZHUHLQWHOOLJHQWYHUVDWLOHDQG
DGDSWDEOH+LVILUVWQRWDEOHDFTXLVLWLRQZDVIXWXUH+DOORI)DPH $VUHPDUNDEOHDVLWZDVWKDWWKHHUVZHQWIURPZRUVWWRILUVWLQMXVW
TXDUWHUEDFN-RH0RQWDQDZKRPWKH1LQHUVVHOHFWHGLQWKHWKLUGURXQG WZRVHDVRQVWKH\ZHUHIDUIURPEHLQJRQHVHDVRQZRQGHUV2YHUWKH
RIWKHGUDIWVWRYHUDOO0RQWDQDZDVQRWSDUWLFXODUO\ELJVWURQJ FRXUVHRIWKHVWKHHUVDSSHDUHGLQVL[1)&FKDPSLRQVKLSJDPHV
RUIDVWDQGKLVDUPVWUHQJWKZDVDYHUDJHEXWKHKDGDQLQFUHGLEOH DQGZRQIRXU6XSHU%RZOV:DOVKUHWLUHGLQDIWHUWKHWKLUGVXFK
XQGHUVWDQGLQJRIWKHJDPH:KHUHDVPRVW1)/RIIHQVHVXVHGWZRWKUHH 6XSHU%RZOEXWLWZDVSULPDULO\WKHSOD\HUVKHGUDIWHGDQGWKHFRDFKHV
UHFHLYHUVRQDSDVVSOD\WKH:&2XVHGIRXUILYHUHTXLULQJWKH KHPHQWRUHGWKDWZRXOGOHDGWRDGGLWLRQDO6XSHU%RZOYLFWRULHVLQ
TXDUWHUEDFNWRDVVHVVPDQ\PRUHRSWLRQVDWRQFH$OVRUDWKHUWKDQWDNH DQG6HYHQRI:DOVK¶VDVVLVWDQWFRDFKHVZHQWRQWREHKHDGFRDFKHV

LQWKH1)/ZLQQLQJDWRWDORIVHYHQ6XSHU%RZOV$OORIWKHVHWHDPVXVHG WKHPRUHOR\DODQGDWWHQWLYHWKDW\RXDUHWRWKHP1RRQHOLNHVWREHIHOW
DYDULDWLRQRIWKH:&2 OHIWRXWVRPDNHVXUH\RXUHPSOR\HHVDQGFXVWRPHUVDUHDWWKHWRSRI
\RXUSULRULW\OLVW
²±
$OZD\VUHPDLQSRVLWLYHDQGIXQWKURXJKRXWDOO\RXUHQGHDYRUV1RRQH
7KHZRUGHQWUHSUHQHXUVHHPVWREHUHVHUYHGIRURQO\WKRVHLQEXVLQHVV OLNH¶VWRGREXVLQHVVZLWKDJUXPSVRHYHQLI\RXDUHKDYLQJWKHZRUOG¶V
%XWRZLQJWRLWVHW\PRORJ\IURPWKH)UHQFKIRU³XQGHUWDNHU´ ZRUVWGD\RUHYHQZRUVW\HDUGRQ¶WVKRZLWRQWKHRXWVLGHDVWKLVPD\
HQWUHSUHQHXUVH[LVWLQVSRUWVPXVLFSROLWLFVDFDGHPLDDUWHWFHWFHWF PDNH\RXUFXVWRPHUVDQGHVSHFLDOO\\RXUHPSOR\HHVYHU\XQHDV\
%LOO:DOVKDQGWKH6DQ)UDQFLVFRHUVZHUHJUHDWHQWUHSUHQHXUV
DQGRQHFDQRQO\LPDJLQHKRZPDQ\SHRSOHLQWKH%D\$UHDWKH\LQVSLUHG
WREXLOGWKHLURZQVWDUWXSV
%86,1(6623325781,7,(6:(%/2*
+RZ7R(QKDQFH<RXU%XVLQHVV
%86,1(6623325781,7,(6:(%/2* -81$0
+RZ7R'HQ\7KH5HFHVVLRQ
-81$0
0DQ\EXVLQHVVRZQHUVRIWHQWLPHVUHDFKDSRLQWLQWKHLUEXVLQHVVFDUHHU
ZKHUHWKH\UHDOL]HWKDWWKHLUEXVLQHVVLVLQGHVSHUDWHQHHGRI
HQKDQFHPHQWEXW\HWWKH\GRQ¶WXVXDOO\NQRZKRZWRJRDERXWGRLQJ
WKLV:HOOEHORZDUHDIHZLGHDVIRUWKRVHRI\RXZKRPD\ILQG\RXUVHOIDW
WKLVSRLQWZLWK\RXUEXVLQHVV
0DQ\RIXVVWLOOGRQ¶WZDQWWRORRNWKHUHFHVVLRQGLUHFWO\LQWKHH\H:H
ZRXOGUDWKHUDFNQRZOHGJHLWLQDEDFNFRUQHURIRXUPLQGDQGUHPDLQ
7U\VRPHWKLQJQHZLQRUGHUWRHQKDQFH\RXUEXVLQHVV7KLVFDQEH
SRVLWLYHLQWKHIURQWRIRXUPLQGDVLIWKHUHLVQRWKLQJZURQJ,I\RXDUH
RQHRIWKHVHEXVLQHVVRZQHUVZKRZRXOGUDWKHUUHPDLQSRVLWLYHXSIURQW DFKLHYHGPDQ\GLIIHUHQWZD\VVXFKDVQHZSURGXFWVVHUYLFHVWRRIIHUD
FKDQJHLQSULFHVFKDQJHLQGHPRJUDSKLFWKDW\RXJHDUWRZDUGVRU
DQGJRDERXW\RXUGDLO\EXVLQHVVGHDOLQJVWKHQORRNEHORZIRUVRPH
PD\EHHYHQVRPHWKLQJDOLWWOHPRUHGUDVWLFVXFKDVDFKDQJHLQ
JUHDWVXJJHVWLRQVRQKRZWRGHQ\WKHUHFHVVLRQWKDW,UHFHQWO\FDPH
DSSHDUDQFHWRWKHLQVLGHDQGRXWVLGHRI\RXUEXVLQHVV
DFURVVRQ(QWUHSUHQHXUFRP
/LNH\RX,UXQDEXVLQHVV±DEXVLQHVVXQLWZLWKLQ9HUL]RQ
,QYHVWLQWKH)XWXUH0RVWUHFHVVLRQVODVWRQO\D\HDURUWZR
WKDWVHOOVVHUYLFHVWRVPDOOEXVLQHVVHV/LNH\RX,QHHGWR
&RPSDQLHVWKDWIDLOWRFRQWLQXDOO\LQYHVWLQEXVLQHVV
PDUNHWWKHPDQ\SURGXFWVDQGVHUYLFHVZHRIIHUVRZHFDQ
LPSURYHPHQWVWUDLQLQJDQGPDUNHWLQJDUHZD\EHKLQGZKHQ
VHOORXUVHUYLFHVEXW±PRUHWKDQVHOOLW¶VLPSRUWDQWWRVKRZ
WKHHFRQRP\UHFRYHUV,QWHUPVRIWUDLQLQJFRQVLGHUKRZWR
WKHYDOXHRIRXUVHUYLFHVFRPSDUHGWRWKRVHRIRXU
FURVVWUDLQ\RXUWHDPPHPEHUVZKLOHEXVLQHVVLVVORZ,WPD\
FRPSHWLWRUV%XVLQHVV)RUXPV
HQDEOH\RXWRSHUIRUPEHWWHUODWHURQ
$OZD\VVWD\RQWRSRI\RXUUHIHUUDOV'RQ¶WHYHUVWRSVHHNLQJRXWWKRVH
UHIHUUDOVRUDVNLQJIRUQHZUHIHUUDOV7KH\DUHWKHNH\WR\RXUIXWXUH
VXFFHVVDQGFRQWLQXRXVJURZWKLQWKHIXWXUH
%HOR\DOWRQRWRQO\\RXUHPSOR\HHVEXW\RXUFXVWRPHUVDVZHOO<RXZLOO
KDYHDPXFKHDVLHUWLPHUHWDLQLQJ\RXUJUHDWHPSOR\HHVDQGFXVWRPHUV

6(7+¶6%/2* 7+(60$573$66,9(,1&20(%/2*
7KHVXJDUFDQHPDFKLQH <RX7XEH7LSVDQG7ULFNV)RU
-81$0
%ORJJHUV±3DUW
$VPDOOLVODQGJURZVVXJDUFDQH0DQ\SHRSOHKDUYHVWLWDQGRQHJX\ -81$0
RZQVWKHPDFKLQHWKDWFDQSURFHVVWKHFDQHDQGWXUQLWLQWRMXLFH
:KRZLQV"
7KHJX\ZLWKWKHPDFKLQHRIFRXUVH,WJLYHVKLPOHYHUDJHDQGVLQFHKH¶V
WKHRQO\RQHKHFDQSD\WKHSLFNHUVZKDWHYHUKHOLNHV²SHRSOHZLOOHLWKHU
VHOOLWWRKLPRUVWRSSLFNLQJ1RIXQEHLQJWKHFDQHSLFNHU+HFDQDOVR
FKDUJHZKDWHYHUKHOLNHVWRWKHSHRSOHZKRQHHGWKHFDQHMXLFHEHFDXVH
ZLWKRXWKLPWKHUH¶VQRMXLFH1RIXQEHLQJDEDNHURUFRRN
%XWQRZDVHFRQGPDFKLQHFRPHVWRWKHLVODQGDQGWKHQWKUHHPRUH
7KHUHDUHILYHSURFHVVRUV
:KRZLQV"
&HUWDLQO\QRWWKHJX\ZLWKWKHILUVWPDFKLQH+HKDVFRPSHWLWRUVIRUWKH
FDQH+HFDQRSWLPL]HDQGZRUNRQHIILFLHQF\EXWSUHWW\VRRQKH¶VJRLQJ
WREHLQDSULFHZDUIRUKLVUDZPDWHULDOVDQGDSULFHZDUIRUWKHILQLVKHG ,QSDUWRIWKLVPLQLVHULHVDERXWYLGHRPDUNHWLQJRQ<RX7XEHZH
SURGXFW1RWVRPXFKIXQWREHWKHIDFWRU\RZQHU GLVFXVVHGWZRLPSRUWDQWWRSLFV
$QGWKHQ$QGWKHQRQHFDQHSURFHVVRUVWDUWVFUHDWLQJDVHULHVRI <RXUPLQGVHWDV\RXEHJLQWRSXVKYLGHRVRQWR<RX7XEHIRUEUDQG
FROOHFWLEOHFRQWDLQHUVVWDUWVLQWHUDFWLQJZLWKKLVFXVWRPHUVDQG H[SDQVLRQDQGWUDIILFJHQHUDWLRQDQG
SURYLGLQJWKHPZLWKFXVWRPEOHQGVVWDUWVRIIHULQJORQJWHUPFRQWUDFWV
DQGEHQHILWVWRKLVELJJHVWFXVWRPHUVDQG\HVHYHQEHJLQVWRSD\KLV $QXPEHURIWKLQJV\RXFDQGRWR\RXUYLGHRUHFRUGLQJWRRSWLPL]H
JURZHUVPRUHLIWKH\¶UHZLOOLQJWREULQJKLPSDUWLFXODUO\VZHHWDQG LW
RUJDQLFPDWHULDOVRQWLPH,QVKRUWKHEHFRPHVDPDVWHURIWKHDUWRI
SURFHVVLQJDQGPDUNHWLQJFDQH+HHDUQVSHUPLVVLRQKHWUHDWVGLIIHUHQW ,QSDUWZH¶UHJRLQJWRFRYHUVRPHWLSVDQGWULFNVIRUZKDWWRGRDIWHU
FXVWRPHUVGLIIHUHQWO\DQGKHUHIXVHVWRDFWOLNHDIDFHOHVVIDFWRU\ \RXUYLGHRLVUHFRUGHGZLWKWKHWLWOHGHVFULSWLRQDQGWDJV
:KRDUH\RX" %HIRUHWKDW,¶GOLNHWRDQVZHUDFRXSOHRITXLFNTXHVWLRQVWKDWVRPHRI
\RXDVNHGPHDIWHUWKHSUHYLRXVSRVW
:KDW¶VWKH0D[LPXP/HQJWKRID9LGHR7KDW<RX&DQ
8SORDGWR<RX7XEH"
7KHDQVZHULVPLQXWHVIODW3HRSOHZKRJRWLQHDUO\RQ<RX7XEH
EHIRUHWKLVPLQXWHUXOHVWDUWHGDUH³JUDQGIDWKHUHG´WKHDELOLW\WR
XSORDGORQJHUYLGHRVEXWWKDWZDVZLWKLQWKHILUVW\HDURQO\,I\RX
VHDUFKRQWKHZHE\RXFDQDFWXDOO\ILQGSHRSOHVHOOLQJWKHLUROG
JUDQGIDWKHUHGDFFRXQWVIRUDORWRIFDVKEHFDXVHPDQ\SHRSOHZRXOGORYH
WRKDYHWKHDELOLW\WRXSORDGYLGHRVORQJHUWKDQPLQXWHVLQOHQJWK
+RZOHJDOLVWKLV",FDQ¶WDQVZHUWKDWDQG,DGYLVHWKDW\RXWRXVH\RXU
EHVWMXGJPHQW
7KDWEHLQJVDLGPLQXWHVRUOHVVLVSOHQW\RIWLPHWRFUHDWHDYLGHRZLWK
JUHDWFRQWHQWWKDWFDQVHQGPDVVHVRISHRSOHWR\RXUVLWHDQGH[SDQG
\RXUEUDQG
:KDW'R,'RLI,+DYHD5HFRUGLQJ7KDW¶V/RQJHU7KDQ

0LQXWHV" *RRJOHVHDUFKDVZHOO
<RXFDQHLWKHUGR\RXUEHVWWRHGLWLWVRWKDWLVXQGHUPLQXWHV25\RX <RX7XEHGRHVQRWFUDZOWKURXJK\RXUYLGHRDQGOLVWHQWRHDFKDQGHYHU\
FDQEUHDNLWLQWRWZRHTXDOSDUWV±DQGXVHHLWKHUWKHGHVFULSWLRQRIWKH ZRUGWKDW\RXVD\WRVHHZKDWLVWKHPRVWUHOHYDQWIRUDFHUWDLQNH\ZRUG
YLGHRVDQQRWDWLRQVRUDYLGHRUHVSRQVHWRFRQQHFWWKHWZR0RUHRQWKLV 7KDWZRXOGEHFUD]\6RZKDW\RXVD\LQ\RXUYLGHRGRHVQ¶WGLUHFWO\
ODWHULQWKHVHULHV HIIHFWWKHVHDUFKHQJLQHUHVXOWVEXWLWGHILQLWHO\PDWWHUV±LQGLUHFWO\
0XFKRIWKHUDQNLQJVDUHEDVHGRQYLHZVFRPSHWLWLRQWDJVUHODWHG
,V7KHUHDQ(DV\:D\WR&KHFN9LGHR6WDWLVWLFVRQ<RX7XEH" YLGHRVDQGFRPPHQWV,GRQ¶WNQRZWKHH[DFWDOJRULWKPRIFRXUVHEXW
YLHZHUDFWLRQZHLJKVLQELJWLPH7KDW¶VZK\LW¶VUHDOO\LPSRUWDQWWR
<HV±LQGHHG<RX7XEHKDVVRPHWKLQJFDOOHG³,QVLJKW´WKDWWHOOVXVDORDG LQFOXGHFDOOVWRDFWLRQZLWKLQ\RXUYLGHRWRJHWPRUHVXEVFULEHUVDQG
RILQIRUPDWLRQDERXWHDFKRIRXUYLGHRVLQFOXGLQJLQFRPLQJWUDIILF PRUHFRPPHQWVDVZHOOLISRVVLEOH
ZKHUHWKH\FDPHIURPDQGHYHQZKDWSDUWVRIRXUYLGHRVSHRSOHDUH
PRUHLQWHUHVWLQJWRWKHYLHZHUV±SOXVDORWPRUH &22/75,&.<RXSUREDEO\NQRZVRPHRIWKHSULPDU\NH\ZRUGV\RX¶G
OLNHWRXVHLQ\RXUYLGHRVEHIRUH\RXHYHQVWDUW7\SHLQWKRVHNH\ZRUGV
2QHWKLQJ,GRLV,DGGHGDQ³,QVLJKW0RGXOH´WRP\KRPHSDJHRI LQWRWKH<RX7XEH6HDUFKILHOGDQGVHHZKDWFRPHVXS<RX¶OOJHWDTXLFN
<RX7XEHVRWKDWDIWHU,VLJQLQ,FDQLPPHGLDWHO\VHHZKDWNLQGRI JODQFHDWZKLFKYLGHRVDUHWKHPRVWSRSXODUDQGJHWWKHPRVWWUDIILF
WUDIILF,¶PUHFHLYLQJDQGZKDWP\PRVWSRSXODUYLGHRVDUH,QRUGHUWR +HUH¶VWKHWLSVRPHVLPLODUWLWOHGYLGHRVZLOOVKRZXSQH[WWRRWKHU
FUHDWHDQ³,QVLJKW0RGXOH´VLPSO\VLJQLQWR\RXU<RX7XEHDFFRXQWDQG YLGHRVLQWKH³UHODWHGYLGHRV´DUHDRQWKHULJKW,I\RXUYLGHRVKRZVXS
FOLFNRQWKH³$GG5HPRYH0RGXOHVÉXWWRQDQGWKHQVHOHFW³,QVLJKW WKHUHWKHUHLVDOZD\VDSRWHQWLDOIRUSHRSOHWRFOLFNRYHUDQGFKHFNRXW
&KDUW´ \RXUYLGHRWRR0RUHH[SRVXUH PRUHWUDIILF
2ND\±QRZEDFNWRRXUUHJXODUO\VFKHGXOHGSURJUDP«
7RGD\ZH¶UHJRLQJWREHWDONLQJDERXWWKH7LWOH'HVFULSWLRQDQG7DJVRI
\RXUYLGHRV$OOWKUHHDUHYHU\LPSRUWDQW\HWDUHRIWHQRYHUORRNHGDV
SHRSOHJHWH[FLWHGWRVHHWKHLUYLGHRVILQDOO\OLYHRQ<RX7XEH
7KH7LWOHRI<RXU9LGHR
7UHDWWKHWLWOHRI\RXUYLGHRWKHVDPHZD\WKDW\RXZRXOGWUHDWWKHWLWOHRI
DQ\EORJSRVWVWKDW\RXZULWH,QRWKHUZRUGVPDNHVXUHWKH\
&RQWDLQWDUJHWHGNH\ZRUGVWKDWUHODWHWR\RXUYLGHRDQG
$UHQRWJHQHULF±PHDQLQJWKH\KDYHVRPHWKRXJKWEHKLQGLWWKDW
PD\FDWFKSHRSOH¶VDWWHQWLRQ
+DYLQJDNH\ZRUGULFKWLWOHLVLPSRUWDQWEHFDXVHUHPHPEHU<RX7XEH
LVDVHDUFKHQJLQH$QGJXHVVZKDW«WKH\DUHRZQHGE\*RRJOH
JDVS3OXVPDQ\<RX7XEHYLGHRVDUHSLFNHGXSLQ*RRJOH6HDUFKHVVR 7KH'HVFULSWLRQ
WKHUH¶VDSRWHQWLDOWRJHWWUDIILFQRWRQO\IURP<RX7XEHVHDUFKEXW

7KHGHVFULSWLRQLVZKHUH\RXWHOOSHRSOHZKDW\RXUYLGHRLVDERXW
6RXQGVVLPSOHHQRXJKKRZHYHUWKHUH¶VRQHDOOLPSRUWDQWWLSWKDW,
UHFRPPHQG\RXGR
$OZD\VVWDUWWKHGHVFULSWLRQZLWKWKH85/RI\RXUEORJRU
ZKDWHYHUZHEVLWH\RX¶UHSURPRWLQJ$V\RXFDQVHHLQWKH
VFUHHQVKRWDERYHIRUP\YLGHRRQ+RZWR0DNHD)DFHERRN/DQGLQJ
3DJHWKHILUVWWKLQJWKDW\RXVHHLQP\GHVFULSWLRQEHORZWKHDFWXDOYLGHR
VHHEOXHDUURZLVP\ZHEVLWHDGGUHVV$OWKRXJKLW¶VFXWRIIDELWLWLV
VWLOOFOLFNDEOHDQG,JHWWUDIILFIURPWKHVHOLQNVHYHU\GD\,I\RXLQFOXGHD
OLQNLQWKHPLGGOHRUWKHERWWRPRI\RXUGHVFULSWLRQSHRSOHZLOOKDYHWR
H[SDQGWKHZLQGRZEHORZWRVHHLWZKLFKPRVWSHRSOHQHYHUGR
$JDLQVWDUWZLWK\RXUOLQNDQGLWZLOODOZD\VEHWKHUHIRUSHRSOHWRFOLFN
RQ
,W¶VDOVRLPSRUWDQWWRLQFOXGHDUHDOGHVFULSWLRQDIWHU\RXUOLQNWKDW &22/75,&.,I\RXSODQRQXSORDGLQJDQXPEHURIYLGHRV\RX

FRQWDLQVRPHUHOHYDQWNH\ZRUGVWRKHOSWKH<RX7XEHDQG*RRJOH FDQ³FUHDWH\RXURZQWDJ´±DXQLTXHFKDUDFWHUVHWRUZRUGWKDW\RXXVH
VHDUFKHQJLQHVGHWHUPLQHZKDW\RXUYLGHRLVDERXW WRWDJHDFKRI\RXUYLGHRV:KHQ\RXGRWKLVVRPHWLPHV<RX7XEHZLOO
VLPSO\VKRZWKXPEQDLOVRI\RXUYLGHRVLQWKHUHODWHGVHFWLRQQH[WWR\RXU
2KDQGIURPZKDW,XQGHUVWDQGDVRIWRGD\KWPOGRHVQRWZRUN RZQRSHQYLGHRVEHFDXVHRIWKDWXQLTXHLGHQWLILHU,W¶VDORWEHWWHUWRKDYH
LQVLGHWKHGHVFULSWLRQ±VRWKHUH¶VQRQHHGWRWU\DQGRSWLPL]HZLWK PRUHRI\RXUYLGHRVLQVWHDGRIRWKHUSHRSOH¶VYLGHRVVKRZXSLQWKH
DQFKRUWH[W3OXVWKHOLQNVIURP<RX7XEHWR\RXUVLWHDUH1R)ROORZ DUHDQH[WWR\RXURSHQYLGHRVRSHRSOHFDQSRVVLEO\VWD\RQFRQWHQWWKDW
DQ\ZD\VZKLFKPHDQVWKH\GRQ¶WUHDOO\FRXQWLQ*RRJOH¶VH\HDVD LV\RXURZQ
EDFNOLQN,W¶VVWLOOLPSRUWDQWWRLQFOXGHDOLQNWKRXJKWRGULYHWUDIILFIURP
\RXUYLGHRWR\RXUVLWH 8S1H[W
7DJV ,KRSH\RXHQMR\HGWKHVHWLSVDQGWULFNVIRUWKHWLWOHGHVFULSWLRQDQGWDJ
RI\RXU<RX7XEHYLGHR,QSDUWZH¶OOFRYHUZKDW\RXFDQGRDIWHU\RXU
7DJVDUHVLPSO\NH\ZRUGVUHODWHGWR\RXUYLGHR<RXFDQDGGDVPDQ\DV YLGHRLVXSORDGHGDQGOLYHRQ<RX7XEHWRPD[LPL]HWUDIILFWR\RXUYLGHRV
\RXZDQWKRZHYHU,¶GUHFRPPHQGDERXWWRWDJVDWPRVW DQG\RXURZQVLWH
&22/75,&.6LPLODUWRWKHWULFNWKDW,PHQWLRQHGIRUWKH7LWOHRI &KHHUV
\RXUYLGHRHQWHU\RXUSULPDU\NH\ZRUGVLQWRWKH<RX7XEHVHDUFKHQJLQH
DQGILQGDSRSXODUYLGHRZLWKDORWRIYLHZV([SDQGWKHGHVFULSWLRQRI
WKHYLGHRDQGORRNDWWKHERWWRPRIWKHZLQGRZWKDWRSHQHGXSWRYLHZ ±±±±±±±
DOORIWKHWDJVWKDWZHUHXVHGIRUWKDWSDUWLFXODUYLGHR,I\RXZDQWWRJLYH $VDOZD\V,MXVWZDQWHGWRWKDQN\RXIRUVXEVFULELQJ7KLVEORJLVD
\RXUVHOIWKHEHVWFKDQFHWRKDYH\RXURZQYLGHRVKRZXSQH[WWRWKH VXFFHVVEHFDXVHRI\RXDQG\RXUVXSSRUW+HUH¶VWR\RXURQOLQH
SRSXODURQHWKDW\RXVHOHFWHGXVHWKRVHVDPHH[DFWWDJVIRU\RXU VXFFHVV
RZQYLGHR$JDLQ,GRQ¶WNQRZWKHH[DFWDOJRULWKPEXWWKLVZLOO
GHILQLWHO\LQFUHDVH\RXUFKDQFHRIEHLQJVKRZQQH[WWRWKHYLGHR\RX %HFRPHD)DQRIWKH6PDUW3DVVLYH,QFRPH%ORJRQ)DFHERRNDQGMRLQ
VHOHFWHGWKDWLVJHWWLQJDWRQRIKLJKO\WDUJHWHGWUDIILFDOUHDG\ WKHFRQYHUVDWLRQ
7KDQN\RXVRPXFK
<RX7XEH7LSVDQG7ULFNV)RU%ORJJHUV±3DUW

%86,1(6623325781,7,(6:(%/2* PLOOLRQGROODUSUL]HIRUWKHILUVWURFNHWFDSDEOHRIPDNLQJUHOLDEOHIOLJKWV
LQWRVSDFHDQQRXQFHGDQHZSUL]HWKLVZHHNHQG7KH\ZLOODZDUG
%XVLQHVV&DUG5HGHVLJQ&RQWHVW PLOOLRQIRUDFOHDQXSRIWKHRLOVSLOOLQWKH*XOIRI0H[LFR&11KDVWKH
-8130 GHWDLOV
7KH;3UL]H)RXQGDWLRQDQQRXQFHGWRGD\WKDWLWLV
GHYHORSLQJDPXOWLPLOOLRQGROODU³RLOVSLOOFOHDQXS;
FKDOOHQJH´WRFRPHXSZLWKVROXWLRQVWRFOHDQLQJXS
VKRUHOLQHVDQGRSHQZDWHUIRXOHGE\RLOOHDNLQJIURPWKH%3
'HHSZDWHU+RUL]RQULJLQWKH*XOIRI0H[LFR
6SHDNLQJDWWKH7('[2LO6SLOOFRQIHUHQFHLQ:DVKLQJWRQ
)UDQFHV%HODQGRIWKH;3UL]H)RXQGDWLRQDVNHGWKHDXGLHQFH
RIDQGPDQ\PRUHZDWFKLQJWKHFRQIHUHQFH¶V
YLGHRVWUHDP³:KDWGR\RXSUL]H"´%HODQGWROG&11DIWHUKLV
DSSHDUDQFHWKDWWKHRLOUHODWHGFKDOOHQJHZLOOSUREDEO\RIIHU
DERXWPLOOLRQLQSUL]HPRQH\IRUDFOHDQXSVROXWLRQ
3KRWRE\PDULQHSKRWREDQN
022FRPDFXVWRPEXVLQHVVFDUGSULQWHULVRIIHULQJIUHHEXVLQHVVFDUG
UHGHVLJQVIRUVPDOOEXVLQHVVHV7RDSSO\IRU022¶V%XVLQHVV&DUG
3URMHFWVXEPLWDH[LVWLQJEXVLQHVVFDUGRQOLQHDQGILOORXWDVKRUW
DSSOLFDWLRQLQFOXGLQJDZRUGHVVD\DERXWZK\\RXUFDUGQHHGVD %86,1(6623325781,7,(6:(%/2*
UHGHVLJQ
1R0RUH)LOOLQJV
(QWULHVZLOOEHDFFHSWHGXQWLO$XJXVW -8130
%86,1(6623325781,7,(6:(%/2*
$Q;3UL]HIRUWKH2LO6SLOO
-8130
'LVFRYHU\1HZV
'HQWLVWVFRXOGVRRQKDQJXSWKHLUGULOOV$QHZSHSWLGH
HPEHGGHGLQDVRIWJHORUDWKLQIOH[LEOHILOPDQGSODFHGQH[W
WRDFDYLW\HQFRXUDJHVFHOOVLQVLGHWHHWKWRUHJHQHUDWHLQ
DERXWDPRQWKDFFRUGLQJWRDQHZVWXG\LQWKHMRXUQDO$&6
1DQR7KLVWHFKQRORJ\LVWKHILUVWRILWVNLQG
7KHQHZJHORUWKLQILOPFRXOGHOLPLQDWHWKHQHHGWRILOO
7KH;3UL]H)RXQGDWLRQZKLFKIXHOHGSULYDWHVSDFHWUDYHOZLWKWKHLUWHQ SDLQIXOFDYLWLHVRUGULOOGHHSLQWRWKHURRWFDQDORIDQLQIHFWHG

WRRWK
³,W¶VQRWOLNHWRRWKSDVWH´ZKLFKSUHYHQWFDYLWLHVVDLG1DGLD %86,1(6623325781,7,(6:(%/2*
%HQNLUDQH-HVVHODVFLHQWLVWDWWKH,QVWLWXW1DWLRQDOGHOD
6DQWHHWGHOD5HFKHUFKH0HGLFDOHDQGDFRDXWKRURIDUHFHQW 7KH:RUOG&XS2I3LFNOHEDOO"
SDSHU³+HUHZHDUHUHDOO\WU\LQJWRFRQWUROFDYLWLHVDIWHUWKH\ -8130
GHYHORS´
'$01,:,6+,¶'7+28*+72)7+$7
%ULDQ6ROLVRQ³(QJDJH´²OLYH
:RUGRI0RXWKSUHYLHZ
-8130
$FFRUGLQJWR7KH0RUQLQJ6HQWLQHOLW¶VHDV\WROHDUQIXQDQGH[WUHPHO\
SRSXODUVD\WKRVHZKRSOD\SLFNOHEDOO
6D\ZKDW"
<HVSLFNOHEDOO<RXPLJKWFDOOLWDFURVVEHWZHHQEDGPLQWRQ
SLQJSRQJDQGWHQQLV
,W¶VSOD\HGZLWKDQHWSDGGOHVDQGDEDOOZLWKKROHVLQLW
VLPLODUWRD:LIIOHEDOO
7KHJDPHZKLOHGHYHORSHGPRUHWKDQ\HDUVDJRLVZLOGO\
SRSXODULQSODFHVOLNH)ORULGD$UL]RQDDQG&DOLIRUQLD²DQG
SOD\HGE\SHRSOHRIDOODJHVDFFRUGLQJWR0LNH*DOODJKHUDQ
:H¶UHEULQJLQJWRJHWKHUDPD]LQJPDUNHWHUVIRU:RUGRI0RXWK 2DNODQGUHVLGHQWZKRVSHQGVZLQWHUVLQ)ORULGDDQG6RXWK
6XSHUJHQLXV7KH³+RZWREH*UHDWDW:RUGRI0RXWK0DUNHWLQJ´ &DUROLQD
FODVVHVUHDOZRUOGFDVHVWXGLHVDQGEULOOLDQWDXWKRUV<RX¶UHJRLQJ 3HRSOHPD\MXVWVKRZXSWRSOD\RUFRPHDQGZDWFK
WROHDUQSUDFWLFDOKDQGVRQWHFKQLTXHVWRJHWSHRSOHWDONLQJDERXW\RX DFFRUGLQJWR*DOODJKHU+HVDLGWKHJDPHLVDJRRGVRFLDO
WKHQH[WGD\ DFWLYLW\DQGZKHQSOD\HGE\SHRSOHRIDOODJHVHQFRXUDJHV
LQWHUJHQHUDWLRQDOIXQ
2XUOLQHXSRIVSHDNHUVLQFOXGHV(QJDJH7KH&RPSOHWH*XLGHIRU
%UDQGVDQG%XVLQHVVHVWR%XLOG&XOWLYDWHDQG0HDVXUH6XFFHVVLQWKH ³:HZDQWWRHQFRXUDJHSHRSOHWRVWRSLQ´KHVDLG³<RXGRQ¶W
1HZ:HEDXWKRU%ULDQ6ROLV%ULDQRIIHUVDIHZLGHDVWKDWDUHFRYHUHGLQ KDYHWREHDJUHDWDWKOHWH<RXFDQOHDUQWRSOD\LQILYHRU
WKHERRNGXULQJKLVOLYHLQWHUYLHZ PLQXWHV´
$QGFKHFNRXWRXU<RX7XEHSDJHWRVHHDOORIRXUVSHDNHULQWHUYLHZV ³7KLVJRHVKDQGLQKDQGZLWKZKDWZH¶UHWU\LQJWRSURYLGHIRU
DFWLYHROGHUDGXOWV´.HQ:DOVKVDLG³$OODJHVFDQSOD\
SLFNOHEDOO,W¶VDJUHDWJUHDWJDPH´
6KDUH
3LFNOHEDOOZDVLQYHQWHGLQE\%LOO%HOODQG-RHO
3ULWFKDUGWZRIDWKHUVLQ:DVKLQJWRQVWDWHZKRVHFKLOGUHQ
NHSWVD\LQJWKH\ZHUHERUHGDQGZDQWHGVRPHWKLQJWRGR
3ULWFKDUGD86FRQJUHVVPDQDQG%HOOPDGHZRRGHQ

SDGGOHVDQGXVLQJD:LIIOHEDOORQDEDGPLQWRQFRXUW
LPSURYLVHGWKHJDPH %86,1(6623325781,7,(6:(%/2*
7KH3ULWFKDUGV¶GRJ3LFNOHVDFRFNHUVSDQLHONHSWJUDEELQJ 0LFURILQDQFH*RHV:KHUH
WKHEDOOWKHFKLOGUHQZHUHFRQVWDQWO\\HOOLQJIRUWKHGRJWR
EULQJWKHEDOOEDFN7KXVWKHJDPHZDVQDPHG³SLFNOHEDOO´ %DQNV)HDU7R7UHDG
-8130
3KRWRE\GHPRFUDWDQGFKURQLFOHFRP
%86,1(6623325781,7,(6:(%/2*
:KDW&RXOG%H«
-8130
,QYHQWRUDQGIXWXULVW5D\.XU]ZHLOVDWLQKLVRIILFHODWHODVWZHHN
FRQILGHQWO\VSLQQLQJVFHQDULRVZLWKWLPHOLQHVWKDWVWUHWFKHGWR
DQGEH\RQGDFFRUGLQJWR7KH%RVWRQ*OREH
*HQWOH3DUNLQJKDVJURZQTXLFNO\VLQFH:LOOLDP2UWL]&DUWDJHQDVWDUWHG
%XWWKHQHDUIXWXUHZDVDOVRRQKLVPLQG:RUOG)XWXUHWKHDQQXDO
WKH6DQ)UDQFLVFRFRPSDQ\WZR\HDUVDJR
FRQIHUHQFHRUJDQL]HGE\WKH:RUOG)XWXUH6RFLHW\VFKHGXOHGIRU-XO\
DWWKH:HVWLQ%RVWRQ:DWHUIURQWKRWHO.XU]ZHLOZLOOGHOLYHUDNH\QRWH
+HQRZHPSOR\VSHRSOHDQGVD\VKHWXUQVDGHFHQWSURILWUXQQLQJVL[
DGGUHVVDWWKHHYHQW
SDUNLQJORWVLQFOXGLQJWZRKHPDQDJHVIRUWKHFLW\
³,W¶VYHU\UHIUHVKLQJWDONLQJWRSHRSOHZKR¶YHJRWWHQEH\RQGDVRUWRI
:KHQKHGHFLGHGWRELGRQDFRQWUDFWWRUXQDQRWKHUFLW\RZQHGORW
ILUVWOHYHOVXUSULVHDWZKDWWKHIXWXUHPLJKWKROG¶¶KHVDLG
WKRXJKWZREDQNVWXUQHGGRZQKLVDSSOLFDWLRQFLWLQJSUREOHPVZLWKKLV
KRPHPRUWJDJH
.XU]ZHLOLVSUREDEO\WKHEHVWNQRZQIXWXULVWRQWKHURVWHUWKRXJKKH
FRQVLGHUVKLPVHOI³DQLQYHQWRUILUVWDQGIRUHPRVW¶¶+HVDLGWKDWHDUO\LQ
%ORRPEHUJ%XVLQHVVZHHNUHSRUWVWKDW2UWL]&DUWDJHQDWXUQHGWR
KLVFDUHHUKHUHDOL]HG³WLPLQJZDVLPSRUWDQWWRWKHVXFFHVVRIDQ
2SSRUWXQLW\)XQGD%D\$UHDPLFUROHQGHUWKDWKDGORDQHGKLP
LQYHQWLRQVR,FDPHXSZLWKDPHWKRGRORJ\WKDWFRXOGVD\VRPHWKLQJ
WRVWDUWKLVFRPSDQ\+HVRRQJRWDOLQHRIFUHGLWDW
DERXWWKHIXWXUHVRWKDW,FRXOGWLPHP\RZQLQYHQWLRQV¶¶
SHUFHQWLQWHUHVW
1RZKHPDNHVSURMHFWLRQVDERXWZKDWWKHZRUOGZLOOEHOLNHLQRU
)RUDVPDOOEXVLQHVVWRJHWDFLW\SDUNLQJFRQWUDFWLV
\HDUV³VR,FDQLQYHQWDQGZULWHDERXWWKLQJVIRUDQG¶¶
XQXVXDO«EHFDXVHVPDOOHUFRPSDQLHVFDQ¶WFDUU\WKHFRVWRI
LQVXUDQFH´KHVD\V³,W¶VOLNH'DYLGDQG*ROLDWKDQG
+LVPHWKRGKDVOHGWRDQXPEHURIQRWDEOHVXFFHVVHVDUHDGLQJPDFKLQH
2SSRUWXQLW\)XQGLVP\VOLQJVKRW´
IRUWKHEOLQGDQHDUO\PXVLFV\QWKHVL]HUDQGVSHHFKUHFRJQLWLRQ
SURGXFWV+HLVZRUNLQJRQHUHDGLQJVRIWZDUHFDOOHG%OLRDVZHOODVD
0LFURILQDQFHOHQGHUVRULJLQDOO\JHDUHGWRKHOSLQJWKH
FRPSXWHUL]HGKHGJHIXQG
GLVHQIUDQFKLVHGDUHSURYLGLQJPRUHILQDQFLQJWRVPDOO
EXVLQHVVHVWKDWFDQ¶WJHWEDQNORDQV:KLOHPLFURILQDQFH
$ORQJWKHZD\.XU]ZHLOKDVSXEOLVKHGZLGHO\RQDUWLILFLDOLQWHOOLJHQFH
UHSUHVHQWVDWLQ\IUDFWLRQRIWKH86FUHGLWPDUNHWLW¶V
DQGOLIHH[WHQVLRQ
JURZLQJIDVW
$WWKHFRQIHUHQFHKHSODQVWRWDONDERXW³KRZLQIRUPDWLRQWHFKQRORJ\
3KRWRE\RVLWRSO
JURZVH[SRQHQWLDOO\QRWOLQHDUO\¶¶DQGKLVIRUWKFRPLQJERRNRQ³UHYHUVH
HQJLQHHULQJWKHEUDLQ¶¶WLWOHG³+RZWKH0LQG:RUNVDQG+RZWR%XLOG
2QH¶¶

%86,1(6623325781,7,(6:(%/2*
3DLQWLQJ7KH0RXQWDLQV«
/LWHUDOO\ %86,1(6623325781,7,(6:(%/2*
-8130
7KH(DUO\%LUG5HDOO\'RHV*HW
7KH:RUP
-8130
7HOHJUDSKFRXN
%\SDLQWLQJWKHPRXQWDLQV(GXDUGR*ROGKRSHVWRUHSOLFDWH
WKHHIIHFWRI$QGHDQJODFLHUVZKLFKUHIOHFWEDFNVXQOLJKWDQG
3HRSOHZKRVHSHUIRUPDQFHSHDNVLQWKHPRUQLQJDUHEHWWHUSRVLWLRQHG
KHQFHKHDWEDFNWKURXJKWKHDWPRVSKHUH
IRUFDUHHUVXFFHVVEHFDXVHWKH\¶UHPRUHSURDFWLYHWKDQSHRSOHZKRDUHDW
WKHLUEHVWLQWKHHYHQLQJ
7KHWHFKQLTXHLVVFLHQWLILFDOO\SODXVLEOHDQGDFFRUGLQJWR
VRPHVFLHQWLVWVPD\EHWKHRQO\PHWKRGRIORZHULQJJOREDO
$FFRUGLQJWR+DUYDUG%XVLQHVV5HYLHZELRORJLVW&KULVWRSK5DQGOHU
WHPSHUDWXUHVLQDFULVLV
VXUYH\HGXQLYHUVLW\VWXGHQWVDVNLQJZKDWWLPHRIGD\WKH\ZHUH
PRVWHQHUJHWLFDQGKRZZLOOLQJDQGDEOHWKH\ZHUHWRWDNHDFWLRQWR
³$ZKLWHVXUIDFHUHIOHFWVWKHVXQ¶VUD\VEDFNWKURXJKWKH
FKDQJHDVLWXDWLRQWRWKHLUDGYDQWDJH
DWPRVSKHUHDQGLQWRVSDFHLQGRLQJVRLWFRROVWKHDUHD
DURXQGLWWRR´VDLGWKH\HDUROGDFWLYLVW³,QHIIHFWLQ
$KLJKHUSHUFHQWDJHRIWKHPRUQLQJSHRSOHDJUHHGZLWK
FUHDWHVDPLFURFOLPDWHVRZHFDQVD\WKDWWKHFROGJHQHUDWHV
VWDWHPHQWVWKDWLQGLFDWHSURDFWLYLW\VXFKDV³,VSHQGWLPH
PRUHFROGMXVWDVKHDWJHQHUDWHVPRUHKHDW´
LGHQWLI\LQJORQJUDQJHJRDOVIRUP\VHOI´DQG³,IHHOLQFKDUJH
RIPDNLQJWKLQJVKDSSHQ´
,WLVKRSHGWKHSURMHFWZLOOVORZWKHPHOWLQJRIWKHJODFLHUV
7KRXJKHYHQLQJSHRSOHGRKDYHVRPHDGYDQWDJHV²RWKHU
7KHSURMHFWLVDORZWHFKQRORJ\UHPHG\IRUJOREDOZDUPLQJ
VWXGLHVUHYHDOWKH\WHQGWREHVPDUWHUDQGPRUHFUHDWLYHWKDQ
7KHZRUNHUVXVHDQHQYLURQPHQWDOO\IULHQGO\PL[RIOLPH
PRUQLQJW\SHVKDYHDEHWWHUVHQVHRIKXPRUDQGDUHPRUH
LQGXVWULDOHJJZKLWHDQGZDWHUZKLFKLVNQRZQWRKDYHEHHQ
RXWJRLQJ²WKH\¶UHRXWRIV\QFZLWKWKHW\SLFDOFRUSRUDWH
XVHGVLQFH3HUX¶VFRORQLDOWLPHV
VFKHGXOH
7KHZKLWHZDVKLVVORSSHGRXWRQWKHVORSHVIURPMXJV
:KHQLWFRPHVWREXVLQHVVVXFFHVVPRUQLQJSHRSOHKROGWKH
LPSRUWDQWFDUGV0\HDUOLHUUHVHDUFKVKRZHGWKDWWKH\WHQGWR
,IWKHXQGHUO\LQJWKHRU\ZKLFKLVNQRZQDV6RODU5DGLDWLRQ
JHWEHWWHUJUDGHVLQVFKRROZKLFKJHWWKHPLQWREHWWHU
0DQDJHPHQWZRUNVWKHJODFLHUVKRXOGUHHPHUJHLQDFRROHU
FROOHJHVZKLFKWKHQOHDGWREHWWHUMRERSSRUWXQLWLHV
PLFURFOLPDWH
0RUQLQJSHRSOHDOVRDQWLFLSDWHSUREOHPVDQGWU\WRPLQLPL]H
7KHSURMHFWLVIXQGHGE\WKH:RUOG%DQNDIWHU0U
WKHPP\VXUYH\VKRZHG7KH\¶UHSURDFWLYH
*ROGZRQD³,GHDVWR6DYHWKH3ODQHW´FRPSHWLWLRQODVW
\HDU
$QXPEHURIVWXGLHVKDYHOLQNHGWKLVWUDLWSURDFWLYLW\ZLWK
EHWWHUMRESHUIRUPDQFHJUHDWHUFDUHHUVXFFHVVDQGKLJKHU
3KRWRE\EDV\NHV

ZDJHV WLPHGRLQJRWKHUWKLQJV$VGLIILFXOWDVLWPD\EHWU\WR
GHGLFDWHSHUFHQWRI\RXUDWWHQWLRQWRWKHVHYDULRXV
&OLFNKHUHWRILQGRXWLI\RXDUHDPRUQLQJSHUVRQ DFWLYLWLHV,¶PJXLOW\RIZRUNLQJRQP\FRPSXWHUWKURXJK
PRYLHVDQGEULQJLQJP\%ODFN%HUU\RQELNHULGHVEXWLW
3KRWRE\OLEHUDOEDSWLVWUHY PDNHVDELJGLIIHUHQFHWRWUXO\HVFDSH
5HDGPRUH³7KH(QWUHSUHQHXULDO5ROOHUFRDVWHU´
3KRWRE\-R-DNHPDQ
%86,1(6623325781,7,(6:(%/2*
7KH(QWUHSUHQHXULDO
5ROOHUFRDVWHU %86,1(6623325781,7,(6:(%/2*
-8130
*UHHQ'HSRW
-8130
,WWDNHVDOLWWOHELWRILQVDQLW\DFFRUGLQJWR7LQD3DSDURQHZULWLQJIRU
5HXWHUVWRVWDUWDEXVLQHVVEXWVRPHWLPHVLWMXVWPLJKWVHQG\RXRYHUWKH
HGJHWRR
)RXQGHUDQGSUHVLGHQW6DUDK%HDWW\ELOOV*UHHQ'HSRWDVWKHFRXQWU\¶V
+RZGR\RXVWD\VDQH"$IWHUWZR\HDUVRIEHLQJRQWKH ODUJHVWJUHHQEXLOGLQJVXSSOLHUZLWKVKRZURRPVDQGZDUHKRXVHV
UROOHUFRDVWHUULGHRIHQWUHSUHQHXUVKLSWKHVHDUHWKHWKLQJV DFURVVWKH1RUWKHDVW
,¶YHIRXQGKHOSPHPDQDJHWKHGLSVDQGVWD\IRFXVHGRQWKH
ORRSV 6KHVD\VWKHIDVWJURZLQJEXVLQHVVLVQ¶WH[SDQGLQJPHUHO\IRUWKHVDNHRI
JURZWKEXWWRPDNHVXVWDLQDEOHEXLOGLQJSURGXFWVDFFHVVLEOHDQG
/HDUQWREHSDWLHQW,UHDOL]HGWKHVDPHWDFWLFVWKDWKDG DIIRUGDEOHVRWKH\FDQEHHDVLO\DGRSWHGLQVWDQGDUGFRQVWUXFWLRQ
DOZD\VZRUNHGIRUPHLQKLJKO\VWUXFWXUHGHQYLURQPHQWV
ZHUHQ¶WFRPSOHWHO\DSSOLFDEOHWRP\ERRWVWUDSSLQJVWDUWXS ,QDVWRU\DW%ORRPEHUJ%XVLQHVVZHHN%HDWW\DIRUPHU079PDUNHWLQJ
,¶YHOHDUQHGWREHKDSS\PDNLQJSURJUHVVHDFKGD\DQGWR H[HFXWLYHLVDOVRDGDPDQWDERXWFRPEDWLQJ³JUHHQZDVKLQJ´²GXELRXV
FHOHEUDWHWKHVPDOOKXUGOHV FODLPVDERXWHQYLURQPHQWDOEHQHILWV%HDWW\VXEPLWVHYHU\SURGXFW
*UHHQ'HSRWVHOOVWRULJRURXVLQKRXVHDVVHVVPHQWWRHQVXUHLWSURYLGHV
2SHQ\RXUH\HVDQGHDUV6RPHWLPHV,FRQVLGHUWKH WKHHQYLURQPHQWDOEHQHILWVFODLPHGE\WKHPDQXIDFWXUHU
DPRXQWRIRSSRUWXQLWLHVDURXQGPHDQGDPEORZQDZD\7KH
FUD]\WKLQJLVWKDWWKHVHRSSRUWXQLWLHVKDYHDOZD\VH[LVWHG 7KHIRUPXODLVSD\LQJRIIIRUWKHSHUVRQEXVLQHVVGHVSLWH
EXW,ZDVDOZD\VPRYLQJWRRIDVWZLWKWXQQHOYLVLRQWRZDUGV WKHGRZQWXUQLQFRQVWUXFWLRQDQGKRXVLQJ%HDWW\VD\V
P\QH[WJRDOWRQRWLFHWKHP2QFH,RSHQHGP\H\HVWRDOORI UHYHQXHZDVXSSHUFHQW\HDURQ\HDU
WKHZRQGHUIXORSSRUWXQLWLHVRXWWKHUHDQ\OLQJHULQJGRXEWV
DERXWJRLQJRXWRQP\RZQYDQLVKHG *UHHQ'HSRWKDVDOVREHJXQWRWDUJHWFRQVXPHUV,Q)HEUXDU\
LWRSHQHGDIODJVKLSVWRUHLQ0DQKDWWDQ¶V6R+RGLVWULFW
([SORUHRWKHUDFWLYLWLHV'RQ¶WIHHOJXLOW\DERXWVSHQGLQJ DQGLQ0DUFKLWKLUHGDIXOOWLPHHPSOR\HHWRPDQDJHLWV

RQOLQHSUHVHQFHDQGHFRPPHUFHVWRUH %86,1(6623325781,7,(6:(%/2*
3KRWRE\*UHHQ'HSRW $GG$/LWWOH6SLFH7R<RXU/LIH
-81$0
%86,1(6623325781,7,(6:(%/2*
:RUN$W+RPH6FDPV3RSSLQJ
8S2Q7ZLWWHU
-8130
,WKLQNLWLVSUHWW\VDIHWRVD\WKDWSHRSOHHQMR\WKHLUIRRGZLWKDOLWWOH
VSLFH:KLOHVRPHSUHIHULWEHVOLJKWO\PLOGWKHUHDUHVRPHSHRSOHWKDW
WUXO\HQMR\WKHLUIRRGIXOORIVSLFHDQGKHDW
%REGH*RXYHLDLVRQHRIWKRVHLQGLYLGXDOV+HORYHGWRVSLFHXSKLV
IRRGVHVSHFLDOO\FXUU\:KHQKHZRXOGPDNHVRPHRIKLVYDULRXVFXUULHV
LWZDVDOZD\VDKLWDPRQJIDPLO\DQGIULHQGV2QHGD\DWWKHLUXUJLQJ
%REGHFLGHGWRVLWGRZQDQGPHDVXUHRXWWKHVSLFHVKHXVHGLQKLV
FXUULHVVRWKH\FRXOGEHSDFNDJHGIRUDQ\RQHWRXVH+LVVWUDWHJ\ZRUNHG
%RELVQRZWKHRZQHURI(=6SLFHVDQGKDVRIILFLDOO\VWDUWHGRIIHULQJKLV
EXVLQHVVVWUDWHJ\DVDQRSSRUWXQLW\IRURWKHUVZLWKDQLQWHUHVWLQVSLF\
IRRGDQGDOLWWOHIXQ
7HOOXVDOLWWOHDERXW(=6SLFHV
:LWKWKRXVDQGVRISHRSOHRXWRIDMREULJKWQRZZRUNDWKRPHVFKHPHV
DUHSRSSLQJXSDOORYHUWKHLQWHUQHW9HJDV¶$FWLRQ1HZVUHSRUWV
(]6SLFHVLVDXQLTXHSURGXFWQRWVHHQLQVWRUHVDQGLVP\
ZD\RIFRPELQLQJ,QGLDQ&XUU\ZLWK:HVWHUQVW\OHFRRNLQJ,
7KHODWHVWRQHLQYROYHV7ZLWWHU6FDPPHUVDUHXVLQJWKHSLWFK
KDYHRYHUWKH\HDUVGHYHORSHGP\RZQ6SLFHPL[HVDQG
WKDW\RXFDQPDNHPRQH\E\VHQGLQJHPDLOVRUSRVWLQJOLQNV
UHFLSHVWREHPRUHDURPDWLFIODYRUIXODQGLQP\DQGWKH
RQ7ZLWWHURUE\SODFLQJDGVRQ*RRJOHDOOIURPKRPH
IDPLOLHVRSLQLRQMXVWHQRXJK6SLFLQHVVWRFRPSOLPHQW
PDMRULW\RISHRSOHVSDODWHV7KLVZDVVKRZQWREHWKHFDVHDV
$FFRUGLQJWRWKH%HWWHU%XVLQHVV%XUHDXWKHVHVFKHPHVPD\
RXU.LGVDQGJUDQGNLGVZKRQHYHUHDWHQ&XUU\EHIRUHLQWKH
VRXQGULVNIUHHEXWWKH%HWWHU%XVLQHVV%XUHDXVD\VWKH\DUH
86$HQMR\HGWKHP
QRW<RXFDQJHWURSHGLQWRVSHQGLQJPRQH\\RXGRQ¶WQHHG
WR
:KDWLQVSLUHGLW"
3KRWRE\EORJDFPRUJ
,KDYHFRRNHG&XUULHVIRURYHU\HDUVQRZVWDUWLQJLQ6RXWK
$IULFD:HGHFLGHGWRPRYHWRWKH86LQWRMRLQWKH
IDPLO\ZKRZHUHDOUHDG\OLYLQJLQWKH866DWXUGD\QLJKWV
EHFDPH³&XUU\QLJKWÍRUWKHIDPLO\,SUHSDUHGD/DPERU
6KULPSFXUU\IRUWKHP$VWLPHZHQWRQWKH\VWDUWHGDVNLQJ
PHIRUP\UHFLSHZKLFK,JDYHWKHPEXWWKH\VDLGPLQHWDVWHG
EHWWHU
(YHQWXDOO\DIWHUDOOWKHQDJJLQJ,VDWGRZQDQGEURNHGRZQ
P\6SLFHV,GRQ¶WXVHVWRUHERXJKW&XUU\DQGWKHUHFLSH
VWDUWHGGHYHORSLQJ$IWHUPDQ\PDQ\WULDOUHFLSHV,JRWLWWR
WKHSRLQWWKDWLWZDVHDV\IRUDQ\RQHWRPDNHDJUHDW&XUU\
ZLWKVWHSE\VWHSLQVWUXFWLRQV

:KHQZDVLWODXQFKHG" FRRNHG&XUULHVWRVDPSOH&KLFNHQDQG6SDJKHWWL
$ERXWD\HDUDJR,PDGHDSRWRIFXUU\XVLQJP\QHZO\ 7KHVHFRQG:HHNZHVROG6SLFH3DNVDQGSHRSOHZKRKDG
FUHDWHGUHFLSHVDQGWKHNLGVWRRNVRPHWRWKHLUSODFHVRIZRUN ERXJKWWKHSUHYLRXVZHHNZHUHEX\LQJDQG3DNV7KLVWR
VRWKHLUFROOHDJXHVFRXOGWDVWH7KH\DOOORYHGLWVR,VWDUWHG PHZDVPRUHLPSRUWDQWWKDQWKHLQFUHDVHLQVDOHV:HIRXQG
SDFNDJLQJWKH6SLFHVDQGWKHUHFLSH,VHQWRXW6SLFH3DNVWR WKDWHYHQRQVORZZHHNHQGV(DVWHUZHGLGZHOOZLWKRQFH
SHRSOHDOORYHUWKH&RXQWU\IRUFRPPHQWDQGIHHGEDFNRQ DJDLQUHSHDWEXVLQHVV
WDVWH,JRWDORWRISRVLWLYHIHHGEDFNRQKRZWKH\HQMR\HGLW
DQGRQO\KDGWRPDNHDIHZDGMXVWPHQWVLQWKHUHFLSH 7HOOXVDOLWWOHDERXW\RXUEXVLQHVVRSSRUWXQLW\"
LQVWUXFWLRQVVRWKDWWKH\ZHUHFOHDUHUDQGPRUHSUHFLVH
2XUEXVLQHVVRSSRUWXQLW\LVDVLPSOHRQHWKDWLVHDV\WRVHWXS
:KDWZDVWKHILUVWVSLFHPL[\RXFUHDWHG" DQGVWDUWPDNLQJPRQH\LQWKHPRVWEDVLFRIEXVLQHVV
HQYLURQPHQWVWKH)DUPHUV0DUNHW:HFRPSOLPHQWWKH
0\ILUVW6SLFH3DNZDV/DPE%HHIDFWXDOO\DQ\UHGPHDW )DUPHUVPDUNHWDVSHRSOHZKREX\WKH6SLFH3DNEX\WKH
IROORZHGYHU\FORVHO\E\&XUULHG6SDJKHWWL YHJHWDEOHVWKH\QHHGDWWKH0DUNHW7KH³KDQGVRQ´DSSURDFK
LVLPSRUWDQW7KHSURGXFWLVDGHILQLWHVHOOHUEXWZRUNVEHVW
+RZPDQ\GR\RXFXUUHQWO\KDYHDQGZKDWDUHWKH\" ZKHQVRPHRQHLVVHOOLQJLWZLWKDWDVWHVDPSOH
5LJKWQRZ,KDYHWULHGDQGWHVWHGUHFLSHV
:KDWDUH\RXUUHTXLUHPHQWV"
/DPE%HHI
:HKDYHDVWDUWXSSDFNDJHWKDWFRVWVDQGFRQVLVWVRI
6SDJKHWWL
6SLFH3DNVIRUUHVDOH
&KLFNHQ
6SLFH3DNVWRPDNHWKHVDPSOH&XUULHV6SDJKHWWLDQG
6KULPS &KLFNHQ
)LVK ĻYHUWLFDO%DQQHUZKLFKGHVFULEHVWKH6SLFH3DNVZLWK
DFWXDOSLFWXUHRIWKHPHDOV
0L[HG9HJHWDEOH
)UHHH&RPPHUFH:HEVLWHZLWKQRKRVWLQJIHHV
&RFRQXW0LON6KULPS
H%RRNVDQGPDUNHWLQJPDWHULDOV
&KLFNHQ%LUL\DQL
+RZORQJZRXOG\RXVD\LWZRXOGWDNHIRUVRPHRQHWRJHW
6RRQWRUHOHDVH HYHU\WKLQJWKH\QHHGWRJHWKHUEHIRUHWKH\FDQVWDUWVHOOLQJWKH
SURGXFW"
3LFNOHG&XUU\)LVK
'HSHQGLQJRQORFDOOLFHQVLQJUHTXLUHPHQWVLWFDQEHDVVKRUW
6ZHHW&XUU\6DXFH5HDG\IRUUHOHDVH,MXVWKDYHWRPDNH DVZHHNEXWQRORQJHUWKDQGD\V,Q)ORULGD,KDGWRJHW
DUUDQJHPHQWVIRUERWWOLQJ,KDYHEHHQERWWOLQJP\VHOIIRUWKH
0DUNHWVDQGWKH\VROGYHU\ZHOODWWKH0DUNHWVDVLWFDQEHXVHGDV 0RELOH9HQGLQJSHUPLW
D%%4VDXFH'LS6SDJKHWWL6DXFH%XUJHUV6QDFNVDQG
6DQGZLFKHV /LDELOLW\LQVXUDQFH
:K\GLG\RXGHFLGHWRWU\VHOOLQJWKHP" 3XUFKDVHWKH&DQRS\WDEOHVDQGDFFHVVRULHVIRUWKHWDEOHV
%DVNHWV3RW3ODQW
6RPDQ\SHRSOHHQMR\HGWKHPDQGZDQWHGWREX\WKHPDQG
FRQYLQFHGPHWKDWWKH\ZRXOGVHOO,WKHQVWDUWHGILJXULQJRXW ,DFFRPSOLVKHGWKLVZLWKLQDZHHNWKHQZHQWWRWKH0DUNHW
WKHEHVWZD\WRWHVWWKH0DUNHWDQGWKHQJRWWKHLGHDWRWU\D WKDW6XQGD\
)DUPHUVPDUNHW,ERXJKWWKH&DQRS\WDEOHVREWDLQHGWKH
QHFHVVDU\'HSWRI$JULFXOWXUHPRELOHYHQGLQJSHUPLWDQG :KDWDUHVRPHRIWKHOHVVRQV\RX¶YHOHDUQHGIURP\RXU
OLWHUDOO\ZHQWWRPDUNHW2QWKHILUVWGD\,VROG6SLFH3DNV EXVLQHVV"
%HOLHYHPHLWZDVLQWHUHVWLQJFRQYLQFLQJSHRSOHWRVDPSOH
&KLFNHQRU6SDJKHWWL&XUU\DWLQWKHPRUQLQJ:H 7KHUHLVDEVROXWHO\QRTXHVWLRQDERXWWKHSURGXFWDQGWKDWLW

VHOOV,WLVD³+DQGVRQ´SURGXFWDQGEHFDXVHLWLVXQLTXH
SHRSOHEX\DQGRQFHWKH\FRRNLWWKH\FRPHEDFNIRUPRUH
2XU³7DVWHWREX\ÚHVXOWVDUHRYHU3HRSOHORYHWRKHDU
DERXWWKH&XUU\DQGWDVWHLW7KH6SLFH3DNVJHWFRPPHQWV
OLNH³<RXPHDQ,EX\WKHLQJUHGLHQWVDQGXVHDOOWKHVHVSLFHWR
PDNH\RXU&XUU\´,DQVZHU\HVWKHQWKHUHSO\LQLQHYLWDEOH³,Q
WKDWFDVH,¶OOWDNHLW´,KDYH\HWWRJHWDQHJDWLYHUHSRUWRQWKH
SURGXFW3ULFHPDGHQRGLIIHUHQFHZKHWKHULWZDVRU
WKHVDOHVUHPDLQHGVWHDG\
$Q\DGYLFH\RX¶GOLNHWRRIIHUIHOORZHQWUHSUHQHXUVWKDWDUH
MXVWJHWWLQJVWDUWHG"
<HV'RLWLWLV($6<DQGLWZRUNV2QFH\RXKDYHWKHHDV\WR
OHDUQSURGXFWNQRZOHGJHZKLFK,SURYLGHZLWKGRFXPHQWDWLRQ
DQGFRQIHUHQFHFDOOVDQGIROORZWKHVLPSOHUXOHVRI
SUHVHQWDWLRQIROORZDJRRGGUHVVFRGHNHHSDIXOOWDEOH
PHDQLQJPDNHWKHWDEOHORRNJRRGDQGLQWHUHVWLQJZLWK
EDVNHWVSRWWHGSODQWV&OHDQOLQHVVLVNH\ZKHQRIIHULQJ
VDPSOHIRRGIRUWDVWLQJDVZLWKDQ\IRRGLILWORRNVFOHDQDQG
JRRGSHRSOHZLOOWU\LW:HDOZD\VGRD&XUULHG6SDJKHWWLIRU
VDPSOLQJDVLWLVDPD]LQJKRZSHRSOHVD\³&XUULHG6SDJKHWWL
QHYHUKDGWKDWEHIRUH´

-XO\
7RGD\·V7DEEORLG
%86,1(6623325781,7,(6:(%/2* ³6WHSKDQLH0H\HUJDYHWKHFRPPXQLW\DJLIWDQGZH¶YHDOO
EHQHILWHGIURPLW´%LOO%UDJHUVD\V³,IHYHUSHRSOHFRPHE\
6PDOO7RZQ*HWV%RRVW)URP ZKRQHYHUKHDUGRI7ZLOLJKW,WHOOWKHPµ*RWRWKHILUVWERRN
WKHILUVWFKDSWHUWKHILUVWVHQWHQFHRIWKHVHFRQGSDUDJUDSK
7ZLOLJKW&UD]H 7KDW¶VWKHILUVWPHQWLRQRI)RUNV)URPWKDWSRLQWRQLW
-8/$0 FKDQJHGWKHKLVWRU\RIRXUWRZQ¶´
3KRWRE\6XPPLW(QWHUWDLQPHQW
%86,1(6623325781,7,(6:(%/2*
8366HOOVµ/XJJDJH%R[HV¶
-8/$0
,QFFRPUHSRUWVWKDW$QQHWWH5RRWLVDIXOOIOHGJHG7ZLOLJKW
HQWUHSUHQHXUDQGVKH¶VQRWWKHRQO\RQH7KHQHZWRXULVWFXOWXUHKDV
JUDGXDOO\LQVSLUHGDIUHVKEDWFKRIVPDOOEXVLQHVVHVLQDQGDURXQG)RUNV
:DVKLQJWRQ)RUNVLVWKHSODFHWKDWLQVSLUHGDXWKRU6WHSKHQLH0H\HU
XVHGDVWKHVHWWLQJWRKHUQRZHSLFDOO\IDPRXVERRNVHULHV7ZLOLJKW
)URPWKH-DFRE%ODFN¶V+RXVHORGJLQJIDFLOLW\WRDUHWDLOHU
FDOOHG1DWLYHWR7ZLOLJKW)RUNVQDWLYHVDUHLQFUHDVLQJO\
FDSLWDOL]LQJRQWKHRSSRUWXQLW\,W¶VDOVRJLYHQHVWDEOLVKHG
ORFDOEXVLQHVVRZQHUVDSUHYLRXVO\XQVHHQVXUJHLQUHYHQXH
HYHQGXULQJWKHZLQWHUPRQWKV $FFRUGLQJWR:DOOHW3RSWKH8366WRUHKDVODXQFKHGDQHZSURGXFW
ZKLFKLWFDOOV³OXJJDJHER[HV´PDUNHWHGDVDSURGXFWWRHQDEOH
%HWZHHQDQGWKHQXPEHURISHRSOHYLVLWLQJWKH FXVWRPHUVWRJHWRXWRISD\LQJDLUOLQHEDJJDJHIHHVE\VKLSSLQJWKHLU
)RUNV9LVLWRU&HQWHUQHDUO\TXDGUXSOHGDFFRUGLQJWRWKH SRVVHVVLRQVDKHDGRIWLPH
)RUNV&KDPEHURI&RPPHUFHDQGWKHQXPEHUVDUH
DOUHDG\VXUSDVVLQJODVW\HDU¶V 7KHER[HVWKHPVHOYHVZKLFKORRNOLNHFDUGERDUGVXLWFDVHV
ZLWKDKDQGOHFRVWIRUDVPDOOVL]HDQGIRUWKH
$VWKHWKLUG7ZLOLJKWILOP³(FOLSVH´SUHPLHUHVWKHERRPLQJ ODUJHUVL]H²WKHFRPSDUDWLYHO\KLJKSULFHIRUDER[LVVDLGWR
EXVLQHVVLQ)RUNVVKRZVQRVLJQVRIVORZLQJGRZQDQGPDQ\ EHMXVWLILHGE\WKHWKHLUWRXWHGGXUDELOLW\²EXWWKDWGRHVQ¶W
ORFDORZQHUVFRXOGQ¶WEHPRUHJUDWHIXO LQFOXGLQJVKLSSLQJ
³7KHPDMRULW\RIPHUFKDQWVKHUHLQ)RUNVUHDOO\DSSUHFLDWH 836FODLPVWKHER[HVZLOOVDYH\RXPRQH\ZKHQVWDFNHG
WKLV´VD\V0LNH*XUOLQJPDQDJHURIWKH)RUNV9LVLWRU&HQWHU DJDLQVW³FRPSDUDEOHÉDJJDJH²PHDQLQJH[WUHPHO\KHDY\RU
³)RUNVSULRUWRWKLVZDVVRUWRIOLNHD6OHHS\+ROORZ´ RGGO\VL]HG

7RGD\¶V7DEEORLG3(5621$/1(:6)25FROOHJHJHWDZD\V#DROFRP -XO\
7KHODUJHUVL]HG³OXJJDJHER[´ZLOOFRQWDLQSRXQGVIRU 7KHOHVVRQ2OGIDVKLRQHGVWXII²FRXSRQVGLVFRXQWVDQGH[FOXVLYH
SOXVWKHER[²EXWVSHDNLQJLQWHUPVRIHFRQRP\LI RIIHUV²ZRUNMXVWILQHDWVWDUWLQJFRQYHUVDWLRQVLQQHZPHGLD
\RX¶UHWUDQVSRUWLQJVRPHWKLQJWKDWZHLJKVWKDWPXFKZKLFK
IDUH[FHHGVWKHXVXDODLUOLQHOLPLWRISRXQGV\RXZRXOG /HDUQPRUH9LPHR
SUREDEO\KDYHWKRXJKWRIPDLOLQJLWDQ\ZD\
!7RWKDQN\RXUIDQV
3KRWRE\%XVLQHVV:LUH
+RZGR\RXWKDQN\RXUELJJHVWWDONHUV"'R\RXHYHQNQRZZKRWKH\DUH"
$GDJLR7HDVLVFOHYHULQWKHLUVRFLDOPHGLDRXWUHDFKEXWWKH\HDUQDWRQ
RIZRUGRIPRXWKZLWKVRPHWKLQJVLPSOHU7KH\WKDQNEORJJHUVZKHQ
WKH\WDONDERXWWKHP:HEORJJHGDERXWWKHPEHFDXVHZHOLNHGKRZHDV\
WKH\PDGHLWIRUSHRSOHWRIROORZWKHPRQ7ZLWWHUDQG)DFHERRN
'$01,:,6+,¶'7+28*+72)7+$7 WKURXJKRXWWKHLURUGHUSURFHVV:HZHUHVXUSULVHGZKHQDIHZGD\VODWHU
ZHUHFHLYHGDOLWWOHWKDQN\RXQRWHZLWKVRPHIUHHELHV,W¶VQRWMXVWXV²
1HZVOHWWHU7KH³6RFLDO WKH\GRLWIRUORWVRIWDONHUVERWKELJDQGVPDOO$QGHDFKWKDQN\RX
GRXEOHVWKHLUZRUGRIPRXWKEHFDXVHZHDOOWDONDERXWWKHIULHQGO\
0HGLD6KRXOGEH(DV\´,VVXH JHVWXUH
-8/$0
7KHOHVVRQ,WGRHVQ¶WWDNHDVRFLDOPHGLDH[SHUWWRILJXUHRXWKRZWR
,I\RX¶UHJHWWLQJVWUHVVHGDERXWDOOWKHHODERUDWHH[SHQVLYHVKLQ\VRFLDO WKULOO\RXUEHVWWDONHUVZLWKDVLPSOHWKDQN\RX
WRROVRXWWKHUH²WDNHDGHHSEUHDWK6RFLDOPHGLDFDQEHHDV\DQGIXQ
DQGVWLOOSURILWDEOH$IHZH[DPSOHVKHUH /HDUQPRUH&RPSXWHUZRUOG
!7RVKDUHLQVLGHUVWXII !&KHFNLWRXW&RQYHUW<RX7XEHYLGHRVWR03ILOHV
!7RRIIHUVLPSOHGHDOV
!7RWKDQN\RXUIDQV :KHWKHULW¶VWXQHVDXGLRLQWHUYLHZVRU-XVWLQ%LHEHU¶VODWHVWUHOHDVH
!&KHFNLWRXW&RQYHUW<RX7XEHYLGHRVWR03ILOHV 'LUS\FDQFRQYHUWWKHYLGHRWRDQ03ILOHVR\RXFDQMDPWRLWGXULQJ
\RXUQH[WFRPPXWH
!7RVKDUHLQVLGHUVWXII
&KHFNLWRXW'LUS\
6RPDQ\PDUNHWHUVDUHRQWKHKXQWIRU³YLUDO´FRQWHQWWKH\RYHUORRNWKH
JUHDWVWXIIWKH\DOUHDG\KDYH$WRXUODVW%ORJ:HOOHYHQW([2IILFR¶V
.HQQ\5RZHVKRZHGXVWKDWWKHLUPRVWSRSXODUFRQWHQWLVZKHQWKH\ 6KDUH
VLPSO\WDNHIDQVEHKLQGWKHVFHQHVWRVKRZRIIWKHLUFRPSDQ\¶VFXOWXUH
DQGSHUVRQDOLW\7KHLU)DFHERRNDOEXPDORQHIHDWXULQJSKRWRVIURPWKHLU
+DOORZHHQSDUW\GURYHPRUHFRPPHQWV³OLNHV´DQGRYHUDOOHQJDJHPHQW
WKDQDQ\H[SHQVLYHRUJLPPLFN\YLUDOFDPSDLJQFRXOGKDYH
7KHOHVVRQ%HIRUH\RXJRORRNLQJRXWVLGHIRUJUHDWVRFLDOPHGLDFRQWHQW
UHPHPEHUWRWDNHDORRNDWWKHJUHDWVWXII\RX¶UHDOUHDG\GRLQJ
/HDUQPRUH9LPHR
!7RRIIHUVLPSOHGHDOV
2QOLQHDQGRIISHRSOHORYHDVDOHRUGLVFRXQW²HVSHFLDOO\LILWIHHOV
H[FOXVLYH'RPLQR¶V5DPRQ'H/HRQLVWKHNLQJRIFOHYHUGHDOVIRUKLV
VRFLDOPHGLDIROORZHUV,QRQHVLPSOHH[DPSOHKHSRVWHGD)DFHERRN
RIIHURIWZRSL]]DVIRUWKHSULFHRIKRZHYHUORQJLWWRRNIDQVWRUHVSRQGWR
WKHPHVVDJH6XUHKHORVHVPRQH\RQWKHILUVWFRXSOHRITXLFN
UHVSRQGHQWV%XWKHPDNHVXSIRULWE\EHLQJDEOHWRIROORZXSZLWKDOO
WKHSHRSOHZKRODWHUFRPPHQWDERXWPLVVLQJWKHGHDOZLWKIXUWKHURIIHUV
$QGKHGRHVWKLVVRUWRIVWXIIDOOWKHWLPH,WUHZDUGVWKHPRVWOR\DODQG
DWWHQWLYHIROORZHUVDQGKHOSVKLPPDNHFRQQHFWLRQVZLWKQHZRQHV

%86,1(6623325781,7,(6:(%/2* :HSHUVRQDOO\PDWFK\RXZLWKFRPSDQLRQVZKRZLOOILW\RXU
SHUVRQDOLW\DQGQHHGV$QGZHZRUNWKHZD\LWZRUNVEHVWIRU
%XVLQHVV2IIHUV$+HOSLQJ+DQG \RX2XUVHQLRUVDUHDYDLODEOHIRU\RXHYHU\GD\DQ\KRXURI
WKHZHHNDQGHYHQRYHUQLJKW
$QG$Q2SSRUWXQLW\
-8/$0 :KDWZHKDYHGLVFRYHUHGLVWKDWWKHSHRSOHZKRXVHRXULQ
KRPHVHQLRUVHUYLFHVFRPHWRORYHWKHSHRSOHZKRSURYLGH
RXUVHUYLFHV,W¶VDERXWJHWWLQJWKHKHOSDQGVRPXFKPRUH±
LW¶VDERXWDGGLQJMR\DQGFRPSDQLRQVKLSEDFNLQWROLIH:H
KHDURYHUDQGRYHUDJDLQIURPWKRVHZKRUHFHLYHRXUVHUYLFHV
WKDWZHFKDQJHSHRSOH¶VOLYHV
:KDWLQVSLUHGLW"
6HQLRUV+HOSLQJ6HQLRUVLQKRPHVHUYLFHVZDVFRIRXQGHGE\
.LUDQDQG3KLOLS<RFRPFUHDWHGIURP.LUDQ<RFRP¶VSHUVRQDO
PLVVLRQWRFDUHIRUWKRVHZKRDUHXQDEOHWRFDUHIRU
WKHPVHOYHV%HIRUHFRPLQJWRWKH8QLWHG6WDWHVIURP,QGLD
.LUDQZRUNHGZLWK0RWKHU7HUHVDIRU\HDUV&XUUHQWO\
7KHFRQFHSWEHKLQG6HQLRUV+HOSLQJ6HQLRUVLVTXLWHVLPSOH7KHVHQLRUV .LUDQVHUYHVDVRXURUJDQL]DWLRQ¶V&KDLUZRPDQDQG3KLOLSDV
WKDWUHFHLYHKHOSDUHDOVREHQHILWLQJIURPWKHFRPSDQLRQVKLSWKH\ WKH3UHVLGHQW&(2RIRXURUJDQL]DWLRQ
UHFHLYHIURPVRPHRQHQHDUWKHLURZQDJH7KHVHQLRUVWKDWRIIHUWKHLU
KHOSDUHQRWRQO\DVVLVWLQJVRPHRQHLQQHHGEXWJLYLQJVXSSRUWWRD +RZPXFKGRHV\RXUVHUYLFHFRVW"
VHQLRUWKDWQHHGVDOLWWOHIULHQGVKLSIURPVRPHRQHWKDWNQRZVZKDW
WKH\¶UHJRLQJWKURXJK,W¶VDQLPSRUWDQWFRQQHFWLRQRQHWKDWKDVKHOSHG 2XUVHUYLFHVDUHDIIRUGDEOHUDQJLQJIURPKRXUO\WRFDUH
WKLVEXVLQHVVEHFRPHWKHKHOSLQJKDQGLWLVWRGD\ :HDOVRSURYLGHKRXUO\VHUYLFHIRU'RFWRUDSSRLQWPHQWV:H
KDYHDORZKRXUPLQLPXP5DWHVYDU\ZLWKORFDWLRQDQG
:HUHFHQWO\VSRNHZLWK/\QQ6YLQGODQGRI6HQLRUV+HOSLQJ6HQLRUVDERXW W\SHRIVHUYLFH
WKHLUVHUYLFHDQGWKHLUIUDQFKLVHRSSRUWXQLW\
+RZGRHVVRPHRQHEHFRPHDKHOSHU"
7HOOXVDOLWWOHDERXW6HQLRUV+HOSLQJ6HQLRUV
:HNQRZWKDWIRUWKHULJKWSHRSOHEHLQJDVHQLRUKHOSLQJ
6HQLRUV+HOSLQJ6HQLRUVLQKRPHVHUYLFHVPDWFKHVVHQLRUV RWKHUVHQLRUVLVUHDOO\DYHU\UHZDUGLQJSRVLWLRQ«DZD\WR
ZKRZDQWWRSURYLGHKHOSZLWKVHQLRUVZKRDUHORRNLQJIRU JLYHDQGWRUHFHLYH
KHOS:HVWDUWHGLQZLWKDVLPSOHFRQFHSWWKDWVHQLRUV
FDQKHOSHDFKRWKHUDJHEHWWHUDQGWKDWWKRVHZKRJLYHDQG :RUNDVPXFKRUDVOLWWOHDV\RXZDQW
WKRVHZKRUHFHLYHEHQHILWHTXDOO\$VDQLQQRYDWLYHLQWUD
JHQHUDWLRQDOFRPSDQLRQVHUYLFHWKDWIXQFWLRQVH[FOXVLYHO\ :HDUHDOZD\VORRNLQJIRUORYLQJJLYLQJFDULQJ
ZLWKDQGIRUVHQLRUVZHSURYLGH FRPSDVVLRQDWHSHRSOHWRZRUNZLWKRXUVHQLRUV(DFKRIRXU
KHOSHUVZRUNVDVPDQ\KRXUVDZHHNDVKHRUVKHZDQWV
$QH[SHULHQFHGDQGFUHGLEOHUHVRXUFHIRUROGHUDGXOWVZKR
ZDQWWRVWD\LQWKHLURZQKRPHV 6XSSOHPHQW\RXULQFRPH
)XOOUDQJHRIKRPHFDUHFRPSDQLRQDQGKRPHPDLQWHQDQFH 0RVWRIWKHSHRSOHZKRZRUNZLWKXVZHUHORRNLQJIRU
VXSSRUWVHUYLFHVIURPVHQLRUVZKRHQMR\KHOSLQJ YROXQWHHUMREVVHHNLQJDFWLYLWLHVWKDWZRXOGDGGPHDQLQJWR
WKHLUOLYHV:RUNLQJDVDVHQLRUKHOSLQJRWKHUVHQLRUVPHDQV
5HDVRQDEOHKRXUO\UDWHVIRUVHQLRUVZKRZDQWVHUYLFHVDQG \RXZLOOEHPDNLQJDQLPSRUWDQWFRQWULEXWLRQ,WDOVR
UHDVRQDEOHKRXUO\ZDJHVWRVHQLRUVZKRSURYLGHWKHP SURYLGHV\RXZLWKDQKRXUO\ZDJHWKDWFDQKHOSFRYHUWKH
H[WUDV
2XUVHQLRUKHOSHUVFDQDVVLVWZLWKDOOWKHWKLQJV\RXQHHG±
OLJKWKRXVHNHHSLQJFRRNLQJVKRSSLQJPRZLQJWKHODZQ 1RH[SHULHQFHQHFHVVDU\%XWORWVRIKHDUWUHTXLUHG
JHWWLQJ\RXWRWKHGRFWRURUHYHQMXVWFKDQJLQJDOLJKWEXOE²
DQGWKH\GRLWZLWKORYH7KDW¶VZK\ZHVD\LW¶VMXVWOLNH :H¶GOLNHWRWDONWR\RXLI\RXFDQRIIHUFRPSDQLRQVKLSRUD
JHWWLQJDOLWWOHKHOSIURP\RXUIULHQGV SDUWLFXODUVHUYLFH0DQ\RIRXUVHQLRUVZKRKHOSRXWDUH
UHFHQWO\UHWLUHGRURQDUHGXFHGZRUNVFKHGXOHDQGKDYH

QHYHUGRQHDQ\WKLQJOLNHWKLVEHIRUH%XWWKH\DOOFRPHWRWKH VXEVWDQWLDOUHZDUGVIRU\RXUERWWRPOLQHDQGIRU\RXUKHDUW
ZRUNIXOORIKHDUWDQGFDULQJ)LQGRXWPRUHDERXWZKHWKHU
\RXFDQTXDOLI\WREHDVHQLRUSURYLGHURULI\RX¶GOLNHWRVWDUW )LQGRXWPRUHDERXWZKHWKHU\RXFDQTXDOLI\WREHD
DFHQWHULQ\RXUWRZQ(PDLOXV IUDQFKLVHSDUWQHUDQGVWDUWDFHQWHULQ\RXUWRZQ(PDLOXV
LQIR#VHQLRUVKHOSLQJVHQLRUVFRPRUILOOLQWKHFRQWDFWIRUP RSSRUWXQLWLHV#VHQLRUVKHOSLQJVHQLRUVFRP
7HOOXVDOLWWOHDERXW\RXUEXVLQHVVRSSRUWXQLW\ :KDWDUH\RXUUHTXLUHPHQWV"
³7KHMR\RIEULQJLQJSHRSOHWRJHWKHU«RISURYLGLQJVHUYLFHV 7KLVGHSHQGVRQZKDW\RXKDYHLQSODFH2XUSDUWQHUVQHHG
WKDWDUHWUXO\QHHGHGDQGDGGLQJVXSSRUWDQGORYHWRWKHOLYHV DQRIILFHDWKRPH7KHFRVWRIVWDUWLQJZLOOYDU\EDVHGRQZKDW
RIRWKHUV«DOOUHDOO\IXOILOOVWKHGHILQLWLRQRIDUHZDUGLQJOLIH,W \RXQHHG:HIHHOWKDWWKHILUVW\HDUUDQJHVKRXOGEH
LVWUXO\«DZD\WRJLYHDQGWRUHFHLYH´ ±WRJHW\RXUEXVLQHVVVWDUWHGLQFOXGLQJVWDUWXS
PDUNHWLQJDQGIUDQFKLVH,QYHVWPHQW
6HQLRUV+HOSLQJ6HQLRUVQRQPHGLFDOKRPHVHUYLFHVDUHJLYHQ
E\ORYLQJFDULQJFRPSDVVLRQDWHVHQLRUVZKRWUXO\ +RZPDQ\ORFDWLRQVGR\RXFXUUHQWO\KDYH"
XQGHUVWDQGZKDWLWPHDQVWREHDJLQJ7KHVHROGHUDGXOWV
SURYLGHERWKWKHSK\VLFDODQGHPRWLRQDOKHOSVHQLRUVQHHGWR :HFXUUHQWO\KDYHWHUULWRULHVWKURXJKRXWWKHFRXQWU\DQG
OLYHLQGHSHQGHQWO\LQWKHLURZQKRPHVZLWKGLJQLW\DQG DUHLQVWDWHV
UHVSHFW
,QZKDWZD\VKDVLWJURZQHYROYHGVLQFH\RXILUVWODXQFKHG"
3HRSOHDUHWKHIDVWHVWJURZLQJDJHJURXSLQWKH86DQG
RYHUKDOIRIWKHPQHHGVRPHOHYHORISHUVRQDOFDUH7KH 6WDUWLQJDVRQHVLQJOHZRPDQ¶VYLVLRQLQDQGQRZD
QXPEHURISHRSOHZKRQHHGKHOSFRQWLQXHVWRH[SDQGUDSLGO\ UHDOLW\IRUVRPDQ\6HQLRUV+HOSLQJ6HQLRUVLQKRPHVHUYLFHV
DQGDVWKHSRSXODWLRQFRQWLQXHVWRDJHWKHJURZLQJGHPDQG YLYLGO\GHPRQVWUDWHVZHWUXO\FDQGRZHOOE\GRLQJJRRG$V
IRUWKH6HQLRUV+HOSLQJ6HQLRUVEXVLQHVVEHFRPHVHYHQPRUH RQHRIWKHRULJLQDO3DUWQHUV,KDYHZDWFKHGWKLVLQFUHGLEOH
HYLGHQW FRPPXQLW\JURZ:HKDYHSHRSOHWKDWKDYHFRPHWRJHWKHUWR
GRVRPHWKLQJWKH\IHHOJRRGDERXWDWWKLVVWDJHLQWKHLUOLYHV
7KH86'HSDUWPHQWRI/DERUSUHGLFWVWKDWYHU\VRRQ 2XU3DUWQHUVFRPHIURPDOOEDFNJURXQGDQGWKHH[SHULHQFHRI
SHUFHQWRIRXUZRUNIRUFHZLOOEHLQYROYHGLQFDULQJIRUDQ DOOKDVJURZQXVWRZKHUHZHDUHDQGZKHUHZHDUHJRLQJ:H
ROGHUSHUVRQ<RXFDQSUREDEO\OLVWWKHSHRSOH\RXNQRZ DOOKDYHDVSHFLDOUHDVRQZHZDQWWRKHOS6HQLRUV
SHUVRQDOO\ULJKWQRZZKRDUHIDFHGZLWKWKHFKDOOHQJHVDQG
FRQFHUQVRIFDULQJIRUDQDJLQJSDUHQW :KDWDUHVRPHRIWKHOHVVRQV\RXUEXVLQHVVKDVWDXJKW\RX"
1RWRQO\GRHV6HQLRUV+HOSLQJ6HQLRUVVHUYLFHVSURYLGH ,KDYHOHDUQHGKRZGLIILFXOWLWLVIRUDORYHGZKRLVVWDUWLQJWR
YDOXDEOHVXSSRUWIRUVHQLRUVZHDOVRUHOLHYHWKHGD\WRGD\ QHHGKHOS$OORIWKHVHQLRUVZHKHOSKDYHFDUHGIRUHYHU\RQH
VWUHVVRQRYHUZKHOPHGIDPLO\PHPEHUV7RPHHWWKLV HOVHDOOWKHLUOLYHVVSRXVHVSDUHQWVFKLOGUHQLWLVYHU\
JURZLQJGHPDQGZHFRQWLQXHWRUHFUXLWPRUHVHQLRUKHOSHUV GLIILFXOWIRUWKHPWRDVNIRUKHOS:KHQVRPHRQHZKR
ZKREHQHILWSHUVRQDOO\IURPUHFHLYLQJDGGLWLRQDOLQFRPHDV XQGHUVWDQGVZKDWLWLVOLNHWRJHWROGHUFRPHVWRKHOSLWUHDOO\
ZHOODVIURPWKHUHZDUGVRIKHOSLQJ6HQLRUV+HOSLQJ6HQLRUV FDQEHDORYLQJUHODWLRQVKLS,KDYHDOVRUHDOL]HGKRZPXFK
LQKRPHVHUYLFHVLVLQWKHULJKWSODFHDWWKHULJKWWLPH7KHUH ZHKHOSWKHZRUNLQJFKLOGUHQRIRXU6HQLRUV,WLVSHDFHRI
LVQRGRXEWZHDUHSRVLWLRQHGIRUH[FLWLQJJURZWK$OOWKH PLQGWRNQRZVRPHRQHLVFDULQJIRU\RXUSDUHQWZKLOH\RX
PHPEHUVRIRXUPDQDJHPHQWWHDPKDYHPDQ\\HDUVRI DUHDWZRUNRUWDNLQJFDUHRI\RXURZQIDPLO\,WUHOLHYHVWKH
H[SHULHQFHSURYLGLQJH[DFWO\WKHNLQGRIVHUYLFHVHQLRUVDQG JXLOWWKDW\RXFDQ¶WDOZD\VEHWKHUH
WKHLUIDPLOLHVQHHG:HNQRZKRZWRPDQDJHWKHRSHUDWLRQV
RIWKH6HQLRUV+HOSLQJ6HQLRUVEXVLQHVVHIIHFWLYHO\DQGKRZ $Q\WLSV\RX¶GOLNHWRRIIHUDQ\RQHWKDWPLJKWEHFRQVLGHULQJ
WRVXFFHVVIXOO\EXLOGDVWURQJIUDQFKLVHFRPPXQLW\ WKH
RSSRUWXQLW\ZLWK6HQLRUV+HOSLQJ6HQLRUV"
)RU\RXWKLVPHDQVHDV\HQWU\LQWR\RXUPDUNHWDQGDKLJK
OHYHORIRQJRLQJVXSSRUW<RXZLOOJHWWKHNQRZKRZ\RXQHHG 8QGHUVWDQG\RXUUHDVRQVIRUZDQWLQJWRGRVRPHWKLQJ
WRJHWVWDUWHGDQGWRFUHDWHDG\QDPLFEXVLQHVV GLIIHUHQWWKDQ\RXKDYHEHHQGRLQJ*HWDOOWKHLQIRUPDWLRQ
\RXFDQDERXWWKHLQGXVWU\RI+RPH&DUH$VNTXHVWLRQV%H
,I\RXDUHORRNLQJIRUILQDQFLDOJURZWKDQGSHUVRQDO VXUHWKDW\RXDUHWKHORYLQJFDULQJFRPSDVVLRQDWHSHUVRQZH
VDWLVIDFWLRQMRLQRXU6HQLRUV+HOSLQJ6HQLRUVIUDQFKLVH DUHORRNLQJIRU<RXQHHGWRUHDOO\NQRZWKDWWKLVEXVLQHVVLV
QHWZRUN%HFRPHSDUWRIRQHRIWKHIDVWHVWJURZLQJVHUYLFH VRPHWKLQJ\RXDQGSXW\RXUKHDUWDQGVRXOLQWR:HDUH
RSSRUWXQLWLHVLQWKH%RRPHUPDUNHW<RXZLOOUHFHLYH FKDQJLQJSHRSOHOLYHV7KHZKROHIDPLO\VHHVKRZZHKHOS

WKHLUORYHGRQHV/RRNGHHSLQVLGH\RXUVHOIDQGILQGRXWZKDW
\RXDUHORRNLQJIRULQDQRSSRUWXQLW\,I\RXFKRRVHWRILQG
RXWPRUHDERXW6+6RXUSURFHVVZLOODOORZXVWRILQGRXWLV
WKLVLVWKHULJKWWKLQJIRUWRGRWRJHWKHU<RXUVXFFHVVLVRXU
VXFFHVV2XUVXSSRUWLVLQFUHGLEOH:HDOOKHOSHDFKRWKHU %86,1(6623325781,7,(6:(%/2*
,I\RXDUHORRNLQJIRUILQDQFLDOJURZWKDQGSHUVRQDO 3LWFKLQJ<RXU%XVLQHVV,Q
VDWLVIDFWLRQMRLQRXU6HQLRUV+HOSLQJ6HQLRUVIUDQFKLVH
QHWZRUN%HFRPHSDUWRIRQHRIWKHIDVWHVWJURZLQJVHUYLFH 0LQXWHV
RSSRUWXQLWLHVLQWKH%RRPHUPDUNHW<RXZLOOUHFHLYH -8/$0
VXEVWDQWLDOUHZDUGVIRU\RXUERWWRPOLQHDQGIRU\RXUKHDUW
%86,1(6623325781,7,(6:(%/2*
0LQQHDSROLV2IIHUV)UHH
,QWHUQHW$FFHVV
-8/$0 ,I\RXRQO\KDGPLQXWHVWRVKDUHDELWRILQIRUPDWLRQZLWKDVWUDQJHU
DERXW\RXUEXVLQHVVZKDWZRXOG\RXVD\"$FFRUGLQJWR7KH&RPPHUFLDO
$SSHDODUHFHQWVSHHGQHWZRUNLQJHYHQWZDVKHOGDWWKH%HWWHU%XVLQHVV
%XUHDXJLYLQJORFDOHQWUHSUHQHXUVWKHRSSRUWXQLW\WRVKDUHDOLWWOHELW
DERXWWKHLUEXVLQHVVLQPLQXWHELWHV
$WWKUHHPLQXWHLQWHUYDOV6DOO\%DNHU%UHQQHUDFWLYDWHGD
ODUJHSODVWLFIURJWKDWHPLWWHGDORXG³ULEELW´DQGFDOOHGWLPH
IRUSHRSOHWRVKLIWVHDWV%\WKHWLPHWKHH[HUFLVHZDVRYHU
PRVWRIWKHHQWUHSUHQHXUVKDGPHWDQGVZDSSHGFRQWDFW
LQIRUPDWLRQ)RUWKRVHZKRKDGQ¶WDQRSHQQHWZRUNLQJ
VHVVLRQIROORZHG
³7KHJUHDWWKLQJDERXWWKLVLVWKDWWKHUH¶VQRQHHGIRUDQ
*RYIUHVKFRPUHSRUWVWKDW0LQQHDSROLVQRZRIIHUVFLWL]HQVIUHH,QWHUQHW LFHEUHDNHUSHRSOHMXVWMXPSULJKWLQIURPWKHJHWJREHFDXVH
DFFHVVIURP³:LUHOHVV0LQQHDSROLV´KRWVSRWV WKHFORFNLVWLFNLQJDQGWKHUH¶VQRWDPRPHQWWRZDVWH´VDLG
%DNHU%UHQQHUDGPLQLVWUDWRUIRUWKH6PDOO%XVLQHVV
+RWVSRWVLWHVZHUHVHOHFWHGEDVHGRQ³ZKHUHSHRSOHDOUHDG\ &KDPEHU³,WIRUFHVHQWUHSUHQHXUVWRERLOGRZQWKHLUPLVVLRQ
JDWKHUDQGXVHFRPSXWHUVDQGSODFHVZKHUHIUHHZLUHOHVV DQGWDUJHWDPDUNHWDQGSUDFWLFHJHWWLQJWKDWPHVVDJHDFURVV
DFFHVVZRXOGHQFRXUDJHSHRSOHWRJDWKHULQFOXGLQJSDUNV 7KHRQO\KDUGSDUWLVJHWWLQJWKHPWRVWRSWDONLQJDQGPRYH
SOD]DVVFKRROVDQGEXVLQHVVHV´ WRWKHQH[WSHUVRQ´
/RFDWLRQVZLOOEHLQGLFDWHGZLWKVLJQVWKDWVD\³)UHH:LUHOHVV 7KHVSHHGQHWZRUNLQJSURJUDPVDUHKHOGHYHU\FRXSOH
0LQQHDSROLV+RWVSRW&RXUWHV\&LW\RI0LQQHDSROLV86, PRQWKV*DUQHUVDLG7KHVHVVLRQVZHUHGHYHORSHGDERXWD
:LUHOHVV´$OLVWRIKRWVSRWVFDQEHIRXQGKHUH \HDUDJRLQUHVSRQVHWRWKHVWUXJJOLQJHFRQRP\RIIHULQJD
VLPSOHZD\WRKHOSVPDOOEXVLQHVVRZQHUV
³%HLQJDZLUHOHVVFLW\LVLPSRUWDQWEXWZHKDYHWREHD
ZLUHOHVVFLW\IRUHYHU\RQH7KHVHQHZKRWVSRWVDUHDQRWKHU ³(YHU\SHUVRQLQWKLVURRPUHSUHVHQWVDQH[WHQGHGFLUFOHRIDW
EHQFKPDUNLQRXUZRUNWREULGJHWKHGLJLWDOGLYLGHDQGFUHDWH OHDVWEXVLQHVVFRQWDFWV´*DUQHUVDLG³7KHEHDXW\RIWKLV
HFRQRPLFDQGHGXFDWLRQDORSSRUWXQLW\IRUHYHU\RQH´VDLG LVWKDWLW¶VRQHKRXURIIUHHQHWZRUNLQJWKDWFDQH[SRQHQWLDOO\
0LQQHDSROLV0D\RU575\EDN LQFUHDVHWKHVFRSHRIDQHQWUHSUHQHXU¶VFOLHQWOLVW´
3KRWRE\YLUWXDOWRXULVW 3KRWRE\MXUYHWVRQ

PDNHXVHRIFDVKLQWKHEDQNDQGDVROLGEXVLQHVVSODQWRSURILWIURPDQ
XSDQGFRPLQJPDUNHW,WVKRXOGKDYHEHHQVXFFHVVIXOEXWLWVDQNDQG,
ZDVIRUFHGWRPDNHWKHFROGVZLPEDFNWRWKHVKRUH,WKRXJKW,KDG
HVFDSHGIURP
'$01,:,6+,¶'7+28*+72)7+$7
:K\5HDG":RUGV
,W¶VWKHOLWWOHWKLQJVWKDWEORZ
,KDYHDQRWKHUFRPSDQ\WKHVHGD\VDQGWKLVRQHLVDIORDWDQGLQJRRG
SHRSOH¶VPLQGV SURILWEXW,WKLQNEDFNUHJXODUO\WRWKDWILUVWEXVLQHVVQRZUXVWLQJRQWKH
-8/$0 RFHDQEHGDQGWU\WROHDUQIURPWKHPLVWDNHV,PDGH,I\RXKDYHD
EXVLQHVVRUDUHVHOIHPSOR\HGRUZLVKWREHLQHLWKHURIWKHVHWZRILHOGVLQ
7KLVOLWWOHVWRU\IURP)OHLVKPDQ+LOODUG¶V-HII'DYLVVD\VLWDOO WKHIXWXUHWKDWWKLVSRVWLVZRUWKUHDGLQJDVLWPLJKWMXVWSUHYHQW\RX
IURPKDYLQJWRSXOORXW\RXUIDYRULWHSDLURIVZLPVKRUWVVWUDSRQDSDLU
RIJRJJOHVDQGWDNHDSOXQJHLQWRWKHVHDIURP\RXURZQVLQNLQJYHVVHO
,WKRXJKW,.QHZ,W$OO
%LJJHVWSUREOHPRIDOOZKHQ\RXDUH\RXQJ<RXWKLQN\RXNQRZLWDOODQG
+RZFDQ\RXEORZVRPHRQH¶VPLQGWRGD\" WKDWVRPHKRZWKHZRUOGRZHV\RXDIDYRXU5HDOLW\FKHFN±\RXGRQ¶W
DQGLWGRHVQ¶W/RRNLQJEDFNRQP\\HDUROGVHOIZKHQ,IRXQGHGWKH
FRPSDQ\,WKRXJKW,KDGZKDWLWWDNHVEHFDXVH,DFHGXQLYHUVLW\DQGZRQ
6KDUH ORWVRIFRPSHWLWLRQV8QIRUWXQDWHO\,FDPHWRUHDOL]HWKDWZLQQLQJ
FRPSHWLWLRQVDQGGRLQJZHOOLQH[DPVLVYHU\GLIIHUHQWIURPZLQQLQJDW
WKHJDPHRIEXVLQHVV-XVWEHFDXVH\RXDUHJRRGDWVRPHWKLQJGRHVQ¶W
PHDQ\RXZLOOEHJRRGDWHYHU\WKLQJ,WWDNHVWLPHFRPPLWPHQWDQGD
ZLOOLQJQHVVWROHDUQWREHFRPHJRRGDWVRPHWKLQJDQGEXVLQHVVLVQR
GLIIHUHQW
817(03/$7(5
,7KRXJKW,.QHZ:KDW&DVK)ORZ:DV
:KDW$)DLOHG%XVLQHVVPDQ
,NQHZZKDWWKHEDVLVRIFDVKIORZZDV,KDGPHPRULVHGWKHGHILQLWLRQ
&DQ7HDFK<RX$ERXW DQGJRWFORVHWRIXOOPDUNVLQP\EXVLQHVVH[DPSDSHU1RSUREOHP,
WKRXJKWDQGWLFNHGWKHER[RIWKLQJVFRPSOHWHG7KDWZDVP\ELJJHVW
6XFFHVVIXO%XVLQHVV PLVWDNHLWZDVFDVKIORZWKDWHYHQWXDOO\HQFRXUDJHGP\ERDWWRJLYHXS
-8/$0 LWV*RGJLYHQDELOLW\WRIORDW&DVKUHDOO\LVNLQJLQDEXVLQHVVDQGXQOHVV
\RXNQRZH[DFWO\ZKHUHLWLVZKHQLWVFRPLQJLQDQGZKHQLW¶VJRLQJRXW
\RXDUHUHDOO\MXVWULGLQJ\RXUEXVLQHVVRQDNQLIHHGJH0\DGYLFHLVWR
FKHFN\RXUEDODQFHVGDLO\HYHQLIQRWKLQJKDVFKDQJHGDQGNHHSDQGH\H
RQZKHUHPRQH\LVFRPLQJDQGJRLQJRQDGDLO\ZHHNO\PRQWKO\DQG
\HDUO\EDVLV,I\RXGRQ¶W\RXZLOOEHJRLQJIRUDVZLP7UXVWPHRQWKDW
RQH
,7KRXJKW$*UHDW,GHD:RXOG$OZD\V%H6XFFHVVIXO
(YHU\RQHNQRZVWKDWLWLVDJUHDWLGHDWKDWPDNHVPRQH\5LJKW":URQJ
7KHLGHDLVRQO\WKHWLSRIWKHLFHEXUJ,QIDFWLWLVRQO\WKHSHQJXLQ21
WKHWLSRIWKHLFHEXUJ7KHLGHDLQP\RSLQLRQDQGWKLVLVFRPLQJIURPD
GHVLJQHUDQGLQQRYDWRULVRQO\WKHILUVWRIVXFFHVV,WLVWKHV\VWHPV
DQGSURFHVVHVEXLOWDURXQGWRWKHLGHDLQRUGHUWRUHDOLVHLWWKDWLVUHDOO\
WKHNH\WRVXFFHVV
$Q\RQHFDQFRRNDEHWWHUEXUJHUWKDQ0F'RQDOGVEXWQRRQHKDVEHWWHU
V\VWHPVWRGHOLYHUWKDWEXUJHUDQGWKDWLVZK\WKH\DUHPDNLQJPLOOLRQV
:KHQP\ILUVWEXVLQHVVVDQN,ZDVLWKDGEHHQD/LPLWHGFRPSDQ\IRU IURPFDUGERDUGWDVWLQJIRRGDQG\RXDUHQRW
MXVWPRQWKV2QSDSHUWKHEXVLQHVVVKRXOGKDYHEHHQVXFFHVVIXO±ZH 7KH,SRGZDVDJUHDWSURGXFWEXWLWLVWKH,WXQHVV\VWHPWKDWPDGHLWD
KDGDJRRGSURGXFWJRRGLQYHVWRUVSOHQW\RIH[SHULHQFHGSHUVRQVWR ZRUOGEHDWHU

<RXQHHGDJRRGLGHDWUXHEXWWKLVLVRQO\WKHVWDUW %86,1(6623325781,7,(6:(%/2*
,/RYHG7KH)UHHGRP2I$)OH[LEOH:RUN'D\$QG$EXVHG,W )ULHQGOLHVW6WDWHV)RU6PDOO
:RUNLQJODWHDQGVOHHSLQJLQLVDQHQWUHSUHQHXUVGUHDP+DYLQJWKH %XVLQHVVHV
IUHHGRPWRZRUNZKHQ,ZDQWDQGGRZKDW,ZDQWZDVDZHVRPH,DEXVHG -8/$0
LWP\EXVLQHVVVXIIHUHG6LPSOH
:RUNLQJIRU\RXUVHOIWDNHVVHOIGLVFLSOLQHHYHQPRUHWKDQLI\RXKDYHD
MRE7XUQLQJXSDWIRUDMRELVHDV\PDNLQJ\RXUVHOIJHWXSIRUZRUNDW
ZLWKQRERVVRYHU\RXLVKDUG,I\RXFDQ¶WVWUXFWXUH\RXURZQWLPH
HIIHFWLYHO\\RXUEXVLQHVVZLOOVXIIHUWRR
,'LGQ¶W7DNH7KLQJV6HULRXVO\(QRXJK
,ORYHGEHLQJLQEXVLQHVVIRUP\VHOI,WZDVDUXVKLWXVXDOO\ZRUNHGZHOO
ZLWKWKHODGLHVDQGP\PDWHVUHVSHFWHGPHMXVWWKDWOLWWOHELWPRUH
PDLQO\EHFDXVHWKH\GLGQ¶WXQGHUVWDQGLW8QIRUWXQDWHO\,ZDVORYLQJ
ZKDWLWPHDQWWRRZQP\RZQEXVLQHVVDQGQRWORYLQJEHLQJLQEXVLQHVV
HQRXJK%XVLQHVVHVIDLOWLPHVRXWRIWHQDQGWKHRQHVWKDWPDNHLWSDVW
\HDUVGRQ¶WVXUYLYHWKHQH[W\HDUVRIWKHWLPH%XVLQHVVLVD
WRXJKLWFDQEHIXQEXW\RXKDYHWRWDNHLWVHULRXVO\
SKRWRFUHGLWFRQQHU
,'LGQ¶W7DNH7KH7LPH7R3DWFK7KH+ROHV7KDW:DV&DXVLQJ
0\%XVLQHVV7R6LQN
:KLOHWRGD\¶VHFRQRP\LVVORZO\VWDUWLQJWRJHWEHWWHUDQGZHDUHVWDUWLQJ
WRVHHVRPHVPDOOLPSURYHPHQWVRQEXVLQHVVHVDQGFUHGLWFUXQFKHV
7KHSRLQWVDERYHZHUHDOOKROHVWKDWZHUHOHWWLQJZDWHULQDQGEHFDXVH,
WKHUHDUHVWLOOPDQ\UHDVRQVWREHOHHU\RIVWDUWLQJDEXVLQHVVLQWKLV
GLGQ¶WIL[WKHPP\ERDWXOWLPDWHVDQN,VWLOOKDYHKROHVLQP\FXUUHQW
HFRQRPLFVWDWHIRUIHDUWKDWZHZLOOJRUDSLGO\EDFNXQGHUDQ\GD\%HORZ
EXVLQHVVEXWWKH\DUHVPDOODQGPRUHPDQDJHDEOHQRZEHFDXVH,WRRN
DUHVRPHRIWKHIULHQGOLHVWVWDWHVIRU\RXWRVWDUWDVPDOOEXVLQHVVLQWKDW
WKHWLPHWRZRUNRXWKRZWRSDWFKWKHP7KHUHLVDORWWROHDUQLQ
\RXPD\ZDQWWRFRQVLGHULI\RXDUHGHDGVHWRQRZQLQJ\RXURZQ
EXVLQHVVDQGLWWDNHVWLPH7KHEHVWZD\WRSDWFKKROHVLVWRJHWVRPHRQH
FRPSDQ\
WRVKRZ\RXDPHQWRURUIULHQGZKRKDVH[SHULHQFHLQEXVLQHVV7KLVLV
QRWDOZD\VSRVVLEOHWKRXJKVRWKHILUVWVWHSLVDOZD\VWRUHDGUHDGDQG
&RORUDGR7KH&HQWHQQLDO6WDWHLVNQRZQDVRQHRIWKHIDVWHVW
UHDGVRPHPRUH7KHUHDUHPRUHEXVLQHVVERRNVRXWWKHUHWKHQWKHUHDUH
JURZLQJVWDWHV²LWVSRSXODWLRQJUHZURXJKO\SHUFHQWRYHU
SRWHQWLDOKROHVLQ\RXUERDWDQGLWMXVWWDNHVDVPDOOLQYHVWPHQWRIWLPH
VHYHQ\HDUV7KHVWDWHUDQNVSRVLWLYHO\LQFDSLWDOJDLQV
DQGHIIRUWWRILQGWKHEHVWRQHV&RQVWDQWO\VWULYHWROHDUQDQGGHYHORS
FRQVXPSWLRQDQGSURSHUW\WD[HV$OVRDJRRGQXPEHURI
\RXUEXVLQHVVVNLOOVDQGVRRQ\RXZLOOEHEXLOGLQJ7LWDQLFV7KLQNDERXW
KLJKO\HGXFDWHGSHRSOHOLYHDQGZRUNLQ&RORUDGRZKLFK
WKDWODVWVHQWHQFH
HTXDOVKLJKLQFRPHOHYHOV5HFHQWO\WDONHGDERXWRQ2SHQ
)RUXP
7H[DVQRWRQO\KDVWKHPRVWLQWHUQDWLRQDOO\IRFXVHGPDQXIDFWXULQJLQWKH
FRXQWU\EXWWKH\DUHWKHORZHVWDVZHOORQZRUNHUVFRPSHQVDWLRQFRVWV
7KH\DOVRRIIHUDYHU\QLFHLQFHQWLYHRIQRLQFRPHRUFDSLWDOJDLQWD[HVIRU
LQGLYLGXDOVDVZHOO
:KLOHQRQHRIXVKDYHHYHUUHDOO\WKRXJKWRI8WDKDVDQHQWUHSUHQHXULDO
VWDWHLWDFWXDOO\DZRQGHUIXOVWDWHIRUVPDOOEXVLQHVVHV7KH\DUHWKRXJKW
WKHEHWKHEUHHGLQJJURXQGIRUVWDUWXSVZKHWKHUWKH\DUHDVXFFHVVRUD
IDLOXUH
$QGRIFRXUVHOHWVQRWIRUJHW:DVKLQJWRQ)LUVWWLPHVWDUWXSVLQ
:DVKLQJWRQWDNHDGYDQWDJHRIWKHORQJWHUPVXFFHVVWKDWDOPRVWHYHU\
QHZVPDOOEXVLQHVVKDVLQWKLVVWDWHDVZHOODVRQHRIWKHORZHVWWD[HVLQ
WKHFRXQWU\DVZHOO

%86,1(6623325781,7,(6:(%/2*
6HOOLQJ)DNH2LO6SLOO6RXYHQLUV
-8130
6(7+¶6%/2*
7KHVOLGHVROXWLRQ
-8/$0
7KHQH[WWLPH\RXILQG\RXUVHOIRQWKHKRRNIRUDPLQXWHSUHVHQWDWLRQ
ZLWKVOLGHVFRQVLGHUDWOHDVWIRUDPRPHQWDUDGLFDOLGHD
$VOLGHHYHU\VHFRQGVVOLGHVLQDOO
<RX¶UHXVHGWRSXWWLQJWKUHHRUIRXUEXOOHWSRLQWVRQDVOLGH7KDW¶VDW
OHDVWIRXUGLVWLQFWLGHDVEXWPRUHRIWHQHDFKRIWKRVHLGHDVKDVWKUHHRU
IRXUVXELGHDVWRLW,QRWKHUZRUGV\RX¶UHFUDPPLQJLGHDVRQDVOLGH
DQG\RX¶UHVLWWLQJRQWKDWVOLGHDV\RXGURQHRQDQGRQ3HUKDSV\RX
-HIIUH\DQG'DYLG6KLIIPDQDUHFRQVXPPDWHHQWUHSUHQHXUVDWWHPSWLQJ
VSLFHLWXSZLWKVRPHUHYHDOVRUDQLPDWHGEXOOHWVEXWLW¶VVWLOOLGHDV
WRPDNHPRQH\RIIRIWKH'HHSZDWHU+RUL]RQRLOVSLOOLQWKH*XOIRI
JRLQJVWDOHEHIRUHRXUH\HV
0H[LFR7KH\¶YHWXUQHGWKHLUEDWKWXELQWRDFKHPLVWU\ODEDQGDUH
PDNLQJDQGERWWOLQJ³2LO6SLOO:DWHU´WRVHOORQWKHLUZHEVLWH
:KDWLI\RXEOHZLWXS"-XVWRQHZRUGRQDVOLGH2USHUKDSVMXVWRQH
RLOVSLOOZDWHUFRP2ULJLQDOO\WKH\ZHUHXVLQJWKHDFWXDOSROOXWHGZDWHU
LPDJHQRFKHHV\VWRFNSOHDVH0D\EH\RXZULWH³&KHDSHU´RQRQHVOLGH
IURPWKH*XOIRI0H[LFREXWVKLSSLQJZDVWRRH[SHQVLYHVRWKH\GHFLGHG
DQG³0RUHGXUDEOH´RQWKHQH[W
WRPDQXIDFWXUHWKHLURZQKHQFHWKHLUQHHGIRUWKHEDWKWXE
6OLGHVFUHDWHDFWLRQ:KHQGLG\RXGHFLGHWKDWWKHDSSURSULDWHDPRXQWRI
7KHRQO\PHQWLRQWKDWWKHZDWHULVQ¶WUHDOO\IURPWKHVSLOODSSHDUVDWWKH
DFWLRQZDVVL[RUWZHOYHWLPHVHYHU\KDOIKRXU"
ERWWRPRIWKHZHEVLWHLQDYHU\OLJKWIRQWDQGUHDGV³2LO6SLOO:DWHULVD
QRYHOW\JLIWWKDWLVLQFOXGHGZLWK\RXUGRQDWLRQ´6HOOLQJRQHWKLQJDQG
+RZZRXOG\RXUSDFHFKDQJHLI\RXKDGVOLGHV"+RZPXFKEHWWHU
SUHWHQGLQJLWLVDQRWKHULVMXVWZURQJ,HPDLOHGWKHVLWH¶VRZQHUVIRU
ZRXOGWKHLQWHJUDWLRQRIVOLGHVDQGWDONEH"
FODULILFDWLRQEXWKDYH\HWWRKHDUDQ\WKLQJHLWKHUZD\
,GRQ¶WKRQHVWO\H[SHFW\RXWRGR\RXUSUHVHQWDWLRQZLWKVOLGHV,¶P
1%&0LDPLUHSRUWVWKDWWKHEURWKHUVDUHVHQGLQJILYHGROODUVRIHYHU\
KRSLQJWKLVH[HUFLVHZLOOKHOS\RXUHDOL]HWKDW\RXPLJKWQRWQHHGDQ\
RUGHUWR5HHI5HOLHI7KH,QWHUQDWLRQDO)XQGIRU$QLPDO:HOIDUH
VOLGHV2UWKDWRUVOLGHVZLOOSLFNXS\RXUHQHUJ\DQGPDNH\RXU
DQG7KH,QWHUQDWLRQDO%LUG5HVHDUFK&HQWHU
DUJXPHQWPRUHFRKHUHQW
%XWSOHDVHGRQ¶WGRWKDWSUHVHQWDWLRQ\RXGLGODVWWLPH

'$01,:,6+,¶'7+28*+72)7+$7 %86,1(6623325781,7,(6:(%/2*
&DOLIRUQLD7RUWLOOD¶V6WDFH\.DQH :K\$UH:HGGLQJV6R
RQKRZWRKDUQHVVFXVWRPHU ([SHQVLYH"
-8130
HQJDJHPHQW²OLYH:RUGRI
0RXWK6XSHUJHQLXVSUHYLHZ
-8130
7KHPRGHUQ$PHULFDQFRXSOHVWDUWVOLIHZLWKDKHDY\ILQDQFLDOEXUGHQ,Q
DELJFLW\OLNH&KLFDJRWKHDYHUDJHZHGGLQJFRVWVEHWZHHQDQG
<HWLQWKHVLWZDVFKHDSFRVWLQJDURXQG7KHUH¶VQR
TXHVWLRQWKDWZHGGLQJSULFHVDUHRXWRIFRQWURO:KDWZHQWZURQJ"
-DVRQ&RFKUDQRI:DOOHW3RSZHQWWRWKH&KLFDJR+LVWRU\0XVHXP¶V³,
'R&KLFDJR7LHVWKH.QRW´H[KLELWLRQZKRVHKLVWRULDQVKDYHILJXUHGRXW
:H¶UHEULQJLQJWRJHWKHUDPD]LQJPDUNHWHUVIRU:RUGRI0RXWK KRZLWKDSSHQHG
&RQIHUHQFHLQ1HZ<RUNRQ-XO\7KHGD\ZLOOIHDWXUHKRZWR ,I\RXZDQWWREODPHVRPHRQHIRUKRZPXFKZHGGLQJVFRVWLQ
FODVVHVUHDOZRUOGFDVHVWXGLHVDQGEULOOLDQWDXWKRUV<RX¶UHJRLQJ RXUVRFLHW\WKHSDSHUZRUNSRLQWVWR0DUVKDOO)LHOG
WROHDUQSUDFWLFDOKDQGVRQWHFKQLTXHVWRJHWSHRSOHWDONLQJDERXW\RX &RPSDQ\
WKHQH[WGD\
)RUH[DPSOHLWZDVWKHILUVWVWRUHWRLPSOHPHQWDJLIWUHJLVWU\
2XUOLQHXSRIVSHDNHUVLQFOXGHVZRUGRIPRXWKVXSHUJHQLXVDQG IRUEULGHVZKLFKHQFRXUDJHGIULHQGVDQGIDPLO\WRPDNH
&DOLIRUQLD7RUWLOOD¶V'LUHFWRURI0DUNHWLQJ6WDFH\.DQH6WDFH\VKDUHV H[SHQVLYHSXEOLFSXUFKDVHVRQWKHFRXSOH¶VEHKDOI
KRZWKHUHVWDXUDQWFKDLQKDUQHVVHGFXVWRPHUHQJDJHPHQWWRODXQFKD
QHZPHQXDQGLQFUHDVHVDOHV,QKHUOLYHSUHYLHZ6WDFH\VKDUHVVRPH ,WFUHDWHGORZFRVWNQRFNRIIVRIKLJKIDVKLRQJDUPHQWVVR
LGHDV ZRPHQRIHYHU\LQFRPHFRXOGLPLWDWHWKHULFK
$QGWRVHHDOORIRXULQWHUYLHZVFKHFNRXWRXU<RX7XEHFKDQQHO $OVRLQWKHQDPHRIOX[XU\DQGFRQYHQLHQFHLWDOVRGHVLJQHG
DV\VWHPWKDWWRRNFRXSOHVXQGHULWVZLQJWRVHOOWKHPDUDQJH
RIRWKHUH[SHQVLYHDFFRXWHUPHQWVWKDWSURYHGWKHLUSODFHLQ
6KDUH VRFLHW\LQFOXGLQJIODWZDUHOLQHQVDQGFDWHULQJ
<RX¶UHSD\LQJZKDW\RXSD\IRU\RXUZHGGLQJQRZEHFDXVH
FDSLWDOLVP²DQGQRWUHOLJLRQ²FRQYLQFHG\RXWKDW\RX

VKRXOG
3KRWRE\EXERU

%86,1(6623325781,7,(6:(%/2*
)DFHERRN)ULHQGV&RQQHFW,Q
%XVLQHVV %86,1(6623325781,7,(6:(%/2*
-8130
0DULO\Q0RQURH¶V&KHVW;5D\
6HOOV)RU
-8130
1RVWRU\VWDUWVRXWVRXQGLQJPXFKVWUDQJHUWKDQLWGRHVIRUWKLVJURXS
+DYLQJFRQQHFWHGRQ)DFHERRNWKH\OHIWDOORIWKHLUIULHQGVDQGIDPLO\
EHKLQGWROLYHLQDKRXVHWRJHWKHUPDQ\PLOHVIURPKRPH7RJHWKHUWKH\
KRSHWRODXQFKWKHQH[WJRWREUDQGLQVRFLDOPHGLDPDUNHWLQJUHSRUWV
7KH2UDQJH&RXQW\5HJLVWHU
,WDOOEHJDQZKHQ%UDGOH\:LOOD\HDUROGVRFLDOPHGLD
FRDFKIURP&KLFDJRVHQWD)DFHERRNPHVVDJHWR5XVVHOO
<HUPDOD\HDUROG7H[DQLQYROYHGLQWKHVDPHWKLQJ³,
WKLQN\RXGRJUHDWZRUN´WKHPHVVDJHVDLG³/HW¶VWDON´
7KHQ5HFRUGRI6DQWD&UX]KDG:LOODQGDQRWKHU)DFHERRN
IULHQG*DEH6WURPRQDFOLHQWFRQIHUHQFHFDOOWRWDONDERXW
EORJJLQJ
6RPHRQHPXVW¶YHUHDOO\OLNHG0DULO\Q0RQURH±HLWKHUWKDWRUFKHVW;
$QRWKHUFRQWDFW$UWKXU7XEPDQRI6WDWHQ,VODQG1< UD\±EHFDXVHWKH\¶YHVKHOOHGRXWIRULWUHSRUWV1HDWRUDPD
KDGEHHQFRDFKHGE\6WURPRI&KLFDJR
$[UD\RIWKHVWXQQLQJVWDUOHW¶VFKHVWVROGDWDXFWLRQLQ
$QGWKHZHEFRQWLQXHGWRJURZ /DV9HJDVRQ6XQGD\IRUDVL]DEOH7KLVZDVZHOO
DERYHWKHHVWLPDWHGWRLWZDVH[SHFWHGWRIHWFK
(DFKZDVLQYROYHGLQVRFLDOPHGLDPDUNHWLQJLQGLYLGXDOO\EXW
WKRXJKWMRLQLQJIRUFHVZRXOGEHEHWWHUWKDQFRPSHWLQJ$ 7KHEL]DUUHPHGLFDOSKRWRJUDSKZDVRQHRIVHYHUDORI
VWULQJRI6N\SHFRQIHUHQFHFDOOVHQVXHGIROORZHGE\WKHLUILUVW 0RQURH¶VEHORQJLQJVWKDWZHUHXSIRUELGDW3ODQHW
IDFHWRIDFHPHHWLQJRQ1HZ<HDU¶V +ROO\ZRRG5HVRUWDQG&DVLQRYLD-XOLHQ¶V$XFWLRQVRYHUWKH
ZHHNHQG
,Q$SULOWKH\GHFLGHGWRPRYHWR6DQ&OHPHQWHWRVWDUW6RFLDO
6SLQZKLFKRIIHUVVRFLDOPHGLDWUDLQLQJWRROVDQGIUHHEORJV 7KH[UD\ZDVWDNHQDURXQGWKHWLPHVKHZDVEHOLHYHGWREH
IRUEXVLQHVVHV SUHJQDQWDQGUXPRUKDVLWWKDWVKHKDGDPLVFDUULDJH
7HDPPHPEHU.\OH*DUUHWWRI6DQWD&UX]KDGQHYHUPHW 3KRWRE\-XOLHQ¶V$XFWLRQV
PRVWRIWKHRWKHUVLQSHUVRQXQWLOPRYHLQGD\
7KHJURXS¶VKRXVHLVDVTXDUHIRRWUHQWDOZLWKDQ
RFHDQYLHZ%XWGRQ¶WOHWWKHGLJVIRRO\RXWKHHQWUHSUHQHXUV
VD\7KH\GRQ¶WUHFHLYHUHJXODUSD\FKHFNVDQGWKHLUIRRGRI
FKRLFHLV7RS5DPHQ3DUWRIWKHFRPSDQ\¶VUHYHQXHKHOSV
SD\WKHUHQW
6RIDUWKHFRPSDQ\KDVJDWKHUHGDERXWLQ
LQYHVWPHQWVDQGLVORRNLQJIRUPRUH
/RJRIURP6RFLDO6SLQ

%86,1(6623325781,7,(6:(%/2* %86,1(6623325781,7,(6:(%/2*
)DQV2I³)DFHERRN:LWK *HWWLQJ7KHLU+RPH2XW2I7KH
7UDLQLQJ:KHHOV´ 0XG8VLQJ76KLUWV
-8130 -8130
7ZRPRPZDQWHGWRKHOSWKHSHRSOHDURXQGWKHPJHWXQVWXFNVRWKH\
VWDUWHGXSDVPDOOVLGHEXVLQHVVWRKHOSUDLVHPRQH\IRUIORRGYLFWLPVLQ
7HQQHVVHHDFFRUGLQJWRMDFNVRQVXQFRP
³:HZDQWHGWRGRVRPHWKLQJIRU:HVW7HQQHVVHH´%HWK
0XUOH\VDLG³7KHUHDUHDORWRIIXQGUDLVHUVIRU1DVKYLOOHDQG
7KH6DQ-RVH0HUFXU\1HZVFKHFNVLQZLWKWKHFUHDWRURI7RJHWKHUYLOOHD
0LGGOH7HQQHVVHH«$QGDOORIXVNQRZVRPHRQHZKRORVW
ZHEVLWHRIWHQFDOOHG³)DFHERRNZLWKWUDLQLQJZKHHOV´
KRPHVDQGEHORQJLQJV´
$OWKRXJKKHGHFOLQHGWRGLVFXVVILJXUHVWKHZHEVLWH¶VFUHDWRU
0XUOH\MRLQVVHYHUDOJURXSVWKDWZDQWWRKHOSWKRVHDIIHFWHG
VD\VSDUHQWVDUHHPEUDFLQJWKHLGHDRIDVRFLDOQHWZRUNLQJ
E\WKHIORRGLQJRUVWRUPVHLWKHUE\UDLVLQJPRQH\RU
VLWHZKHUHWKH\KDYHWKHFRQWURO
FROOHFWLQJLWHPVVXFKDVIRRG
7KHFRPSDQ\ZKLFKMXVWVHFXUHGYHQWXUHFDSLWDOIXQGLQJ
0XUOH\DQGKHUIULHQG$SULO6PLWKGHVLJQHGWKUHHGLIIHUHQW
VD\VLWSODQVRQPDNLQJPRQH\E\LQWURGXFLQJµ7ELOOV¶DIRUP
7VKLUWVLQOLPHJUHHQDQGEOXHFRORUVDQGDUHVHOOLQJWKHPIRU
RIFXUUHQF\WKDWUHVHPEOHVDQDOORZDQFHDQGOHWVNLGVEX\
7KHPHVWRFKRRVHIURPDUH³6WXFNLQWKH0XG´
YLUWXDOWKLQJVZLWKLQ7RJHWKHUYLOOH
³L6XUYLYHG´DQG³:KHQWKHIORRGUHFHGHV«WKH5RFNLV
WKHUH´7KHGHVLJQVLQFOXGHWKHZRUGV³)ORRG´DQG
3DUHQWVVD\RQHRIWKHJRRGWKLQJVDERXWµ7ELOOV¶LVWKDWOLNHD
³:HVW7HQQHVVHH´
WUDGLWLRQDODOORZDQFHWKH\FDQEHZLWKKHOGIRUEDGEHKDYLRU
$³6WXFNLQWKH0XG´ZULVWEDQGLVDOVRDYDLODEOHIRU
3KRWRE\7RJHWKHUYLOOH
,WHPVFDQEHRUGHUHGWKURXJKDZHEVLWHRUWKHZRPHQZLOO
PDNHGHOLYHU\DUUDQJHPHQWVIRUORFDOSXUFKDVHVWRVDYH
VKLSSLQJFRVWV0XUOH\VDLG
3KRWRIURP6WXFN,Q7KH0XG

%86,1(6623325781,7,(6:(%/2* DGGLWLRQDOSRXQGVZLOODOORZDFRPSHWLWLYHXVHIXOORDGZKLOH
SURYLGLQJDUHYROXWLRQDU\OHYHORIFUDVKVDIHW\LQD/LJKW6SRUW$LUFUDIW
)O\LQJ&DU*RHVLQWR3URGXFWLRQ
-8130 %\JLYLQJSLORWVDFRQYHQLHQWJURXQGWUDQVSRUWDWLRQRSWLRQWKH
7UDQVLWLRQUHGXFHVWKHFRVWLQFRQYHQLHQFHDQGZHDWKHUVHQVLWLYLW\RI
SHUVRQDODYLDWLRQ,QDGGLWLRQWRWKHHQKDQFHGSURWHFWLRQDIIRUGHGE\
DSSO\LQJDXWRPRWLYHFUDVKVDIHW\WHFKQRORJ\WROLJKWSODQHVWKH
7UDQVLWLRQUHGXFHVWKHSRWHQWLDOIRUDQDFFLGHQWE\DOORZLQJSLORWVWR
GULYHXQGHUEDGZHDWKHULQVWHDGRISRWHQWLDOO\IO\LQJLQWRPDUJLQDO
FRQGLWLRQV
&ODVVLILHGDVD/LJKW6SRUW$LUFUDIWWKH7UDQVLWLRQUHTXLUHVD6SRUW
3LORWFHUWLILFDWHWRIO\DQGLVGHVLJQHGWRGULYHRQSXEOLFURDGZD\VDQG
SDUNLQDVWDQGDUGJDUDJH7HUUDIXJLDVXFFHVVIXOO\FRPSOHWHGIOLJKWDQG
GULYHWHVWLQJRILWV3URRIRI&RQFHSW7UDQVLWLRQLQ5HIXQGDEOH
DLUIUDPHUHVHUYDWLRQVDUHEHLQJDFFHSWHGZLWKILUVWGHOLYHU\VFKHGXOHGIRU
ODWH
YLD7HUUDIXJLD
7KH7HUUDIXJLD7UDQVLWLRQDOLJKWDLUFUDIWWKDWORRNVOLNHD9RONVZDJHQ
%HHWOHDQGFDQFRQYHUWLQWRDURDGOHJDODXWRPRELOHLVWRJRLQWR
SURGXFWLRQDIWHUEHLQJJLYHQDVSHFLDOZHLJKWH[HPSWLRQE\WKH86
)HGHUDO$YLDWLRQ$GPLQLVWUDWLRQ %86,1(6623325781,7,(6:(%/2*
7KHFDUSODQHZLOOEHDYDLODEOHIRU 5HFXUYH
-8130
5HFXUYHDVL[\HDUROGFRQVWUXFWLRQFRPSDQ\LQWKH%D\$UHDIRFXVHV
RQHQHUJ\DXGLWVDQG³KRPHSHUIRUPDQFHUHWURILWV´²WKDWLVPDNLQJ
KRXVHVXVHOHVVHQHUJ\UHSRUWV%ORRPEHUJ%XVLQHVVZHHN
7KHSUHVVUHOHDVHLVDYDLODEOHDIWHUWKHMXPS
7KHFRPSDQ\LVDOVRGHYHORSLQJVRIWZDUHWRKHOSRWKHU
7HUUDIXJLD,QFGHYHORSHURIWKH7UDQVLWLRQ5RDGDEOH$LUFUDIWRU
FRQWUDFWRUVUHFRUGWUDFNDQGUHSRUWGDWDRQHQHUJ\VDYLQJV
³)O\LQJ&DU´KDVUHFHLYHGDQH[HPSWLRQIURPWKH)$$WRDOORZWKH
IRUFOLHQWV
7UDQVLWLRQDPD[LPXPWDNHRIIZHLJKW072:RISRXQGV
NJ7KLVDGGLWLRQDOZHLJKWDFFRPPRGDWHVWKHVWUXFWXUHDQGHTXLSPHQW
)RXQGHU0DWW*ROGHQVD\V5HFXUYH¶VHPSOR\HHVKHOSDERXW
QHFHVVDU\IRUFRPSOLDQFHZLWKWKH)HGHUDO0RWRU9HKLFOH6DIHW\
WRKRPHVHDFKPRQWKVDYHHQHUJ\E\DGGLQJLQVXODWLRQ
6WDQGDUGV)0966ZKLFKDUHQRWIRXQGLQRWKHU/LJKW6SRUW$LUFUDIW
VHDOLQJOHDNVDQGUHSODFLQJLQHIILFLHQWERLOHUVDQGRWKHU
,WHPVVXFKDVDLUEDJVDQHQHUJ\DEVRUELQJFUXPSOH]RQHDQGD
DSSOLDQFHV
SURWHFWLYHVDIHW\FDJHZLOOLQFUHDVHVDIHW\ERWKRQWKHURDGDQGLQWKHDLU
([FOXVLYHO\DSSOLFDEOHWRWKH7UDQVLWLRQWKH)$$¶VJUDQWRIDQ

³8VXDOO\WRSHUFHQWRIWKH>HQHUJ\@ELOOLVVWUDLJKW %86,1(6623325781,7,(6:(%/2*
ZDVWH´*ROGHQVD\V+HVD\VKRPHUHWURILWVUHGXFHFRVWV
ORZHUFDUERQHPLVVLRQVDQGHPSOR\ZRUNHUVLQWKHKDUGKLW &DQ$%DOO+HOS.LGV/HDUQ
FRQVWUXFWLRQLQGXVWU\
%UDLOOH"
3KRWRE\5HFXUYH -8130
,PDJLQHLI\RXFRXOGSLFNXS%UDLOOHMXVWE\SOD\LQJZLWKDEDOO)DVW
&RPSDQ\UHSRUWVWKDWDQHZFRQFHSWXDOWR\E\UHFHQW3UDWWJUDG'DQLHOOH
3HFRUDLVGHVLJQHGSUHFLVHO\IRUWKDW
%86,1(6623325781,7,(6:(%/2* %H%LVDEDOOWKDWKHOSVNLGVEOLQGRUQRWOHDUQ%UDLOOHWKURXJKWRXFK
DQGVRXQG
$:UDSIRU7KDW
-8130
/RRNLQJDELWOLNHDVWLII.RRVKEDOOLWKDVPDJQHWLFSHJVHDFK
GHSLFWLQJDOHWWHURIWKHDOSKDEHWLQ/DWLQRQRQHVLGHDQG%UDLOOHRQWKH
7HFK&UXQFK RWKHU
7KHL3KRQHKDVQ¶WHYHQEHHQRXWDZHHNDQGDOUHDG\ 7KHREMHFW¶VWRILWWKHSHJVLQWRFLUFXODULQGHQWVLQWKHEDOOWKDWDUH
DZUDSIRUWKDWFRPKDVSRSSHGXSWRPDNHYLQ\OVNLQVWKDW WKHPVHOYHVHPERVVHGLQ%UDLOOHOHWWHUV³$´LQ%UDLOOHIRULQVWDQFHLVD
ZUDSDURXQGWKHSHULPHWHURIWKHGHYLFH:K\ZRXOGDQ\RQH VLQJOHGRWVR\RX¶GILQGWKHSHJZLWKRQHGRWWKHQPDWFKLWWRWKHVSRW
ZDQWWKDW"%HFDXVHRIWKHL3KRQHDQWHQQDLVVXHV²WKHVR RQWKHEDOOZLWKRQHGRW
FDOOHG³'HDWK*ULS´SUREOHP
$QHOHFWURQLFGHYLFHLQWKHEDOOFKLPHVZKHQ\RXJHWDOHWWHUULJKW,W¶OO

DOVRYHUEDOL]HZKDWOHWWHU\RX¶UHWRXFKLQJZKHQ\RXUXQ\RXUILQJHUVRYHU DQGHYHU\WKLQJZLWKDGUDZLQJRID)DFHERRN³/LNHÉXWWRQRQWKH

WKHLQGHQWV HQYHORSH7KHQ,VWXPEOHGDFURVVWKLVJHPE\1DWLRQZKLFKZH¶YH
DOUHDG\VWDUWHGXVLQJLQWKH0U<RXWKRIILFH<RXFDQDOVRZHDUVHQGRU
7KHPDLQSUREOHPWKRXJKLVWKLV%H%PLJKWDOUHDG\EHREVROHWH SHHODQGVWLFNDWDQJLEOHEXWWRQ
,Q:HVWHUQFRXQWULHVWH[WWRVSHHFKVRIWZDUHDQGRWKHUUHDGLQJ :KDWRWKHUZRUGVFRXOG)DFHERRNKDYHFKRVHQIRUWKLVWDVN"<RX³ORYH´
WHFKQRORJLHVKDYHWXUQHG%UDLOOHLQWRDUHOLFRIWKHSUHGLJLWDODJH WKLV<RX³DSSURYH´WKLV<RX³FRQFXU´<RX³DJUHH´<RX³WKLQNWKLVLV
WKHVKL]QLW´
$VWKH1HZ<RUN7LPHVUHSRUWHGODVW\HDUOHVVWKDQSHUFHQWRIOHJDOO\
EOLQG$PHULFDQVUHDG%UDLOOH<HWPDQ\ZRXOGDUJXHWKDW%UDLOOHOLWHUDF\ 'HILQLWHO\QRW1RWKLQJHOVHZRUNV³/LNH´LVWKHZRUG,VXSSRVH
DOORZVIRUDPHDVXUHRILQGHSHQGHQFHQRHODERUDWHJL]PRFDQSURYLGH (LVHQKRZHUKDGLWULJKW
$IWHUDOOZKDWGR\RXGRZKHQFRPSXWHUVIDLO" 7KRXJKWKLVLVQ¶WWKHILUVWLQVWDQFHRIZHEVSHDNJRLQJIDFHWRIDFH
20*LWLVIXQQ\DQGUHDOLVWLFPRUHVRWKDQWKLV)DFHERRNKDV
3KRWRE\3UDWW,QVWLWXWH WXUQHGDVLQJOHZRUGLQWRHYHU\WKLQJZHQHHGWRVD\FUHDWHGVXFKD
VWURQJQHHGIRUWKLVVLPSOHSLHFHRIIHHGEDFNWKDWZH¶YHDVNHGIRULWWR
H[LVWHYHU\ZKHUH
1RZZHQHHGEXWWRQVIRUWKHUHVWRIRXUHPRWLRQDOUDQJH
*52:1837+,1.,1* ,JXHVVWRVXPLWXS,³/LNH´WKLV'R\RX"
2I<RXU)ULHQGV³/LNH´7KLV
-8130 %86,1(6623325781,7,(6:(%/2*
)RU7KH/RYH2I%DFRQ
-8130
,DPVRH[FLWHGDERXWWKHSRWHQWLDORI)DFHERRN¶VRSHQJUDSKWKDW,ZDQW
WRORRNIXUWKHULQWRLWVGULYLQJIRUFHWKH³/LNHÉXWWRQ7KHSRSXODULW\
DQGUHFRJQLWLRQRIWKLVOLWWOHEXWWRQLVZKDWSURSHOVWKHZHE¶VVRFLDO .DQVDV&LW\FRP
IXQFWLRQDQGWKHUHDVRQEUDQGVZLOOVHHWKHUHVXOWV
,WZDV'HFHPEHUDQG-DVRQ'D\KDGVRPHWKLQJWR
0DQ\PRRQVDJRZKHQ)DFHERRNILUVWFUHDWHGWKH³/LNHÉXWWRQWKHUH VKRZKLVEDUEHFXHFRQWHVWWHDPPDWH$DURQ&KURQLVWHU'D\
ZHUHVNHSWLFV%XWDVZLWKDOOJRRGVRFLDOPHGLDGHYHORSPHQWVXVHUV KDYLQJWKURZQEDFNVRPHKROLGD\FKHHUDWRQH&KULVWPDV
EHJDQWRDFFHSWWKH³/LNHÉXWWRQDQGLWKDVVLQFHVWDUWHGDQHZWUHQGLQ SDUW\VKRZHGXSODWHLQWKHHYHQLQJIRUKLVVHFRQGSDUW\DW
FRPPXQLFDWLRQ &KURQLVWHU¶VSODFHLQ%URRNVLGH
7KHSKHQRPHQRQRIWKH)DFHERRN³/LNHÉXWWRQLVWKDWLWKDVEHFRPH 'D\ZDONHGLQWRWKHNLWFKHQWRVVHGRQWKHWDEOHD6W\URIRDP
SDUWRIRXUGDLO\H[SUHVVLRQ2QOLQHDQGRIIOLQHLWUHLJQV FRQWDLQHUFRQWDLQLQJDEDFRQZUDSSHGEDFRQVWXIIHG
EDUEHFXHVDXFHLQIXVHGORJRIVPRNHG,WDOLDQVDXVDJHDQG
,WVWDUWHGZKHQ,UHFHLYHGDOHWWHULQWKHPDLO\RXNQRZZLWKDVWDPS DQQRXQFHG³%RRP%DFRQ([SORVLRQ´

*XHVWVDWWKHILUVWSDUW\KDGPRVWO\WXUQHGXSWKHLUQRVHVDW %XWDVPRUHSHRSOHEHFRPHLQWHUHVWHGLQEX\LQJORFDOIRRGD
'D\¶VFXOLQDU\FUHDWLRQ,WZDVDGLIIHUHQWVWRU\DW IHZVWDWHVKDYHFUHDWHGH[HPSWLRQVIRUDPDWHXUFKHIVZKR
&KURQLVWHU¶VKRXVH²SHRSOHWKHUHULSSHGLQWRLW7KHKRVW VHOOKRPHPDGHJRRGVDWIDUPHUVPDUNHWVDQGRQVPDOOIDUPV
UHPHPEHUVKDYLQJWRKLGHDQHQGSLHFHIRUKLVEUHDNIDVWWKH
QH[WPRUQLQJ 7KHH[HPSWLRQVKDYHWRXFKHGRIIDGHEDWHDERXWKRZWR
EDODQFHWKHQHHGIRUIRRGVDIHW\ZLWKDGRVHRIUHJXODWRU\
,I\RX¶UHDSRUNIDQ\RXSUREDEO\NQRZZKDWKDSSHQHGQH[W FRPPRQVHQVH
7KHEDFRQEXGVSRVWHGWKHUHFLSHDQGSLFWXUHVRIWKDWILUVW
%DFRQ([SORVLRQRQWKHLUZHEVLWH7KHQ&KURQLVWHUWZHHWHGLW 6XSSRUWHUVVD\WKH\UHFRJQL]HIRRGVDIHW\UHJXODWLRQV
³WRDIHZSHRSOH´WKHUHFLSHZHQWYLUDO7KH1HZ<RUN7LPHV GHVLJQHGIRUELJFRPPHUFLDOIRRGKDQGOHUVFDQEHDEXUGHQ
ZURWHDERXWLW²DQGWKHQWKHUHFLSHZHQWFUD]\YLUDO IRUVPDOOWLPHFRRNVZKRMXVWZDQWWRPDNHDIHZH[WUDEXFNV
VHOOLQJFDQQHGJRRGVRURWKHUVSHFLDOW\SURGXFWV
%XWZLOOOLJKWQLQJVWULNHWKHLUVPRNHUVWZLFH",VLWSRVVLEOH
WKHVHEDFRQDQGEDUEHFXHHQWUHSUHQHXUVFDQFRPHXSZLWKD 2SSRQHQWVVD\WKDWZLWKRXWUHJXODWLRQWKHSXEOLFLVDWULVN
UHFLSHWKDWZLOOLQVSLUHDVPXFKWZHHWLQJHPDLOIRUZDUGLQJ IRUIRRGERUQHLOOQHVVHV
GURROLQJ²DQGDUWHU\FORJJLQJ²DVWKH%DFRQ([SORVLRQ"
3KRWRE\$3
³,WZRXOGEHWRXJK´&KURQLVWHUVD\VODXJKLQJ³,WZDVNLQGRI
DRQHWLPHGHDOSUREDEO\:HWKLQNDERXWLWTXLWHDELW´
:KDWHYHUWKH\FRPHXSZLWKZRXOGLWKDYHEDFRQLQLW"
³0RVWOLNHO\´KHVD\V
3KRWRIURP%%4$GGLFWV
%86,1(6623325781,7,(6:(%/2*
6WDWHV(DVH)RRG6DIHW\5XOHV
)RU+RPHPDGH*RRGV
-81$0
7KH$VVRFLDWHG3UHVVUHSRUWVWKDWIHGHUDODQGVWDWHODZVUHTXLUHWKDW
PRVWIRRGVROGWRWKHSXEOLFEHPDGHLQOLFHQVHGIDFLOLWLHVRSHQWR
JRYHUQPHQWLQVSHFWRUV

-XO\
7RGD\·V7DEEORLG
'$01,:,6+,¶'7+28*+72)7+$7
:KHQ\RX¶UHUHSODFHDEOH
VHUYLFHPDWWHUVPDWWHUPRUH
-8/$0
:HSD\DORWIRUDWUDGLWLRQDOSKRQHOLQH%XWZKHQLWJRHVGHDGZHVWDUW
XVLQJPRELOHVDQG6N\SH$QGWKH\ZRUNMXVWILQH
:KHQWKHIDQF\HPDLOVHUYHUFUDVKHVZHUHDOL]HWKDW*PDLOZRUNVILQH
:KHQWKHFRS\PDFKLQHEUHDNVZHMXVWVFDQDQGSULQWVWXII$QGFDQFHO
WKHOHDVHRQWKHFRS\PDFKLQH
/HVVRQ,I\RXUVHUYLFHKDVDIUHHRUFKHDSDOWHUQDWLYH\RX¶UHRQHVFUHZ
XSDZD\IURPEHLQJUHSODFHG<RX¶YHJRWWRJHWLWULJKWHYHU\WLPH
6KDUH
%86,1(6623325781,7,(6:(%/2*
%DG3URGXFW1DPHV
-8/30
:HZLOOEX\PDQ\SURGXFWVLQRXUOLIHWLPH0DQ\WLPHVSDFNDJLQJ
PDUNHWLQJDQGDGYHUWLVLQJZLOOPDNHDGLIIHUHQFHLQZKLFKEUDQGZH
FKRRVHWRSXUFKDVH
+RZHYHUHYHQEHIRUHDSURGXFWLVPDQXIDFWXUHGZUDSSHGXSDQG
VKLSSHGRXWLWKDVWRKDYHDQDPH
7KHPRPHQWWKHSURGXFWLVJLYHQDQDPHDFUXFLDOPDUNHWLQJGHFLVLRQLV
PDGH
$QGVRPHWLPHVLW¶VDGRR]\

³7KHPRVWH[FLWLQJWKLQJDERXWWKHSURMHFWLVKRZPDQ\
SHRSOHKDYHERUURZHGWKHLGHD´*H\HUVD\V³:HKDYHRWKHU
HQJDJHGFRXSOHVUHF\FOLQJIRUWKHLUZHGGLQJVDQG
KRQH\PRRQV²HYHQDZRPDQFROOHFWLQJFDQVWRSD\IRUKHU
OLYHUWUDQVSODQW´
3KRWRE\*UHHQ+RXVH
%86,1(6623325781,7,(6:(%/2*
$PD]RQ2IIHUV+XJH5R\DOWLHV
3KRWRVE\&KLFDJR1RZ 7R.LQGOH$XWKRUV
-8/30
%86,1(6623325781,7,(6:(%/2*
µ:HGGLQJ&DQ&RXSOH¶+LW*RDO
-8/30
7KLQNLQJDERXWVHOISXEOLVKLQJDERRN"6WRSWKLQNLQJDQGMXVWGRLW
$PD]RQKDVDQHZEXVLQHVVPRGHOWKDWPD\JLYH\RXKDOIDFKDQFHDW
DFWXDOO\PDNLQJVRPHPRQH\RIIWKHGHDO
,QFFRPLVUHSRUWLQJWKDW$PD]RQLVQRZRIIHULQJRIQHWVDOHVLQ
UR\DOWLHVWRDXWKRUV1RSXEOLVKHUVRUDJHQWVQHHGHGWRZHWWKHLUEHDNV
ILUVWE\WKHZD\
$QGUHD3DUULVKDQG3HWHU*H\HU²DNDWKH³:HGGLQJ&DQ&RXSOH´²VD\
WKH\¶YHUHDFKHGWKHLUJRDORIUHF\FOLQJDOXPLQXPFDQVWRSD\IRU 7KHUHDUHVRPHFRQGLWLRQV
WKHLU-XO\QXSWLDOV
7KHERRNKDVWREHSULFHGEHWZHHQDQG
3DUULVKWROG*UHHQ+RXVHWKDWVKHILJXUHGUHF\FOLQJFDQVZRXOGEHDQ
HFRIULHQGO\ZD\WRIXQGWKHLU',<ZHGGLQJ6KHVHWXSDZHEVLWH 7KHSULFHKDVWREHDWOHDVWFKHDSHUWKDQDQ\RWKHU
DQGZRUGVSUHDGTXLFNO\ IRUPDW¶VHGLWLRQLHSDSHUEDFNVRIWEDFNDXGLRKDUGEDFN
7KHFRXSOHVD\LWWRRNGD\VWRUHDFKWKHLUJRDOFROOHFWLQJ 7KH.LQGOHYHUVLRQKDVWREHPDGHDYDLODEOH³LQDOO
RQDYHUDJHRQHFDQDERXWHYHU\VHFRQGV$OFRD$OXPLQXP JHRJUDSKLHV´WKDWRWKHUYHUVLRQVRIWKHERRNDUHVROG
KHOSHGE\GRQDWLQJFDQV
3KRWRE\WHFKIRGGHU

%86,1(6623325781,7,(6:(%/2*
6LOO\%DQG]+DVµ/HJV¶ %86,1(6623325781,7,(6:(%/2*
-8/30
:K\&DQ¶W$OO79&RPPHUFLDOV
%H7KLV(QWHUWDLQLQJ"
-8/30
(GLWRU¶V1RWH,GRQ¶WNQRZLILWVHOOVDQ\2OG6SLFHEXWLWHQWHUWDLQVIRU
VHFRQGVDQG,¶GORYHWRVHHWKHRXWWDNHV
%86,1(6623325781,7,(6:(%/2*
:HILUVWWROG\RXDERXWWKHPEDFNLQ0DUFK6LOO\%DQG]DUHUXEEHU 7XUQ:ULVWEDQG,QWRL3KRQH
EDQGVRIWHQLQQHRQFRORUVWKDWDUHVKDSHGOLNHHYHU\GD\REMHFWVD
JXLWDUDEDVHEDOOEDWDSULQFHVV 6DYHU
-8/30
8QOLNHWKHEHLJHURXQGHODVWLFVVWDVKHGLQ\RXUGHVNGUDZHUWKHVHDUH
PHDQWWREHZRUQRQWKHZULVWDQGWKH\VQDSEDFNLQWRWKHLURULJLQDO
VLOLFRQPROGHGVKDSH²DWXUWOHSHUKDSVRUDGLQRVDXURUWLDUD²ZKHQ
\RXWDNHWKHPRII
&KLOGUHQOLNHWRFROOHFWWKHPE\WKH=LSORFEDJDQGVRPHSULQFLSDOVKDYH
EDQLVKHGWKHPVD\LQJWKH\¶UHDGLVWUDFWLRQ
7KH1HZ<RUN7LPHVUHSRUWVWKDWQRZDGXOWVDUHHPEUDFLQJWKHIDVKLRQ
IDG
0DU\.DWH2OVHQDQG6DUDK-HVVLFD3DUNHUKDYHEHHQVHHQ 7KHUH¶VRQHVXUHILUHZD\WRVROYHWKHL3KRQHDQWHQQDSUREOHPGRQ¶WOHW
ZHDULQJWKHPDVKDYHWKHPRGHO$J\QHVV'H\QDQGKHU \RXUKDQGRUILQJHUVFRPHLQFRQWDFWZLWKLWVPHWDOEDQG
IULHQG+HQU\+ROODQGWKH+RXVHRI+ROODQGGHVLJQHU
(DVLHUVDLGWKDQGRQHULJKW"8QOHVV\RX¶UHZLOOLQJWRFRQVWDQWO\XVHWKH
.HOO\5LSDZRUHWKHPRQ³/LYH:LWK5HJLVDQG.HOO\´DQGJRW VSHDNHUSKRQHDKHDGVHWRUDSDLURIJORYHV\RXURQO\YLDEOHRSWLRQLVWR
5HJLV3KLOELQWRSXWRQHRQWRR(YHQWKHIRRGZULWHUDQG79 NHHSWKHL3KRQHLQDFDVH±RUDVVRPHKDYHGLVFRYHUHGZUDSLWLQD
KRVW$QWKRQ\%RXUGDLQZDVSKRWRJUDSKHGIRU1HZ<RUN UXEEHU³EXPSHU´
PDJD]LQHDIHZZHHNVDJRZLWKDWXUTXRLVHRQHRQKLVZULVW
&1(7UHSRUWVWKDWL3KRQH*XUXEORJJHU2OLYHU1HOVRQFUDIWHGDFOHYHU
³,W¶VDQDWXUDOSURJUHVVLRQIRUWKHSURGXFW´VDLG5REHUW ',<L3KRQHEXPSHUVROXWLRQRXWRIRQHRIWKRVHUXEEHUZULVWEDQGV\RX
&URDNWKHSUHVLGHQWRI%&3,PSRUWVWKHFRPSDQ\LQ7ROHGR SUREDEO\KDYHVLWWLQJLQDMXQNGUDZHU
2KLRWKDWPDNHV6LOO\%DQG]³:KHQZHGHYHORSHGWKHPZH
DOZD\VWKRXJKWWKH\¶GEHDJUHDWIDVKLRQDFFHVVRU\IRUDOO ,W¶VDSUHWW\VWUDLJKWIRUZDUGSURMHFWVWUHWFKDZULVWEDQGDURXQGWKHHGJH
DJHV.LGVMXVWWRRNWRWKHPILUVW´ RI\RXUL3KRQHDQGSUHVWR\RX¶UHGRQH,I\RX¶UHKDQG\ZLWKDQ;$FWR
NQLIH\RXFDQFXWKROHVIRUWKHKHDGSKRQHMDFNPXWHVZLWFKGRFN
3HRSOHWKHLUVDQGVDUHLQWURGXFLQJRQHDQRWKHUWRWKH FRQQHFWRUDQGVRRQ
EUDFHOHWV¶FKDUPV7KH\KDQGWKHPRXWWRIULHQGVDWEDUVRU
HYHQWRVWUDQJHUVRQWKHWUDLQ 3KRWRE\2OLYHU1HOVRQ

%86,1(6623325781,7,(6:(%/2*
5HF\FOH7KH:KROH+RXVH
-8/30
%86,1(6623325781,7,(6:(%/2*
7KH0LVWDNH(QWUHSUHQHXUV
0DNH
-8/30
5HF\FOLQJLVH[SDQGLQJIURPQHZVSDSHUVDQGERWWOHVWRHQWLUHKRXVHVDV
,I\RXWDNHDPRPHQWWRFRQVLGHUWKHYDULRXVPLVWDNHVWKDWQHZ IRUHFORVXUHVWD[FUHGLWVDQGODQGILOOFRVWVSURPSWEXVLQHVVHVDQGQRQ
HQWUHSUHQHXUVKDYHPDGHZKDWZRXOG\RXVD\LVWKHZRUVW"$FFRUGLQJWR SURILWRUJDQL]DWLRQVWRVDOYDJHPDWHULDOVIURPROGKRPHV
9DWRU1HZVWKHWRSPLVWDNHWKDWHQWUHSUHQHXUVPDNHLVWU\LQJWRUDLVH
PRQH\IURPYDULRXV9&VEHIRUHWKH\DUHWUXO\UHDG\ $FFRUGLQJWR86$72'$<VWRUHVDUHVSULQJLQJXSWRVHOOXVHGOXPEHU
DSSOLDQFHVFDELQHWU\DQGIORRULQJ
%HIRUHWKH\JRRXWWR9&VHQWUHSUHQHXUVVKRXOGEXLOGD
SURGXFWEXLOGDWHDPDQGJHWVRPHWUDFWLRQWRGHPRQVWUDWH +DELWDWIRU+XPDQLW\DQRQSURILWWKDWEXLOGVDQGUHKDEV
ZKDWWKH\¶UHGRLQJ³3XW\RXUVWRU\WRJHWKHUDQGVKRZVRPH DIIRUGDEOHKRPHVKDVVXFKUHWDLORXWOHWVFDOOHG
SURRISRLQWV´VDLG-HII ³5H6WRUHV´0DUN$QGUHZV+DELWDW¶VGLUHFWRURI86
RSHUDWLRQVVD\VWKHQXPEHULVJURZLQJ³DOPRVWGDLO\´+H
:KDWDUHTXHVWLRQVHQWUHSUHQHXUVVKRXOGDVNLQYHVWRUV", H[SHFWVDQDGGLWLRQDOVWRUHVLQWKHQH[W\HDU
DVNHG
³,W¶VH[SORGHGDOORYHUWKHFRXQWU\´LQWKHSDVWILYHWRVHYHQ
$VNWKHPKRZPXFKWKH\NQRZDERXW\RXUEXVLQHVVSDLQ \HDUVVD\VJUHHQEXLOGLQJH[SHUW'DYLG-RKQVWRQDERXWWKH
SRLQWDQGLQGXVWU\-HIIVXJJHVWHG,QIDFW\RXPLJKWJRDVIDU WUHQGWRZDUGGHFRQVWUXFWLQJUDWKHUWKDQGHPROLVKLQJ
DVWDONLQJWR&(2VRIFRPSDQLHVWKH9&VKDYHLQYHVWHGLQ KRPHV
³,W¶VDPDUULDJHDQG\RXZDQWWRGR\RXUKRPHZRUNEHIRUH
HQWHULQJWKDWPDUULDJH´ 2ZQHUVJHWDGRXEOHEHQHILW²DWD[FUHGLWIRUGRQDWLQJJRRGV
DQGSHDFHRIPLQGIRUQRWGXPSLQJLQWRODQGILOOV
3KRWRE\EILVKDGRZ
3KRWRE\KDELWDWRUJ

%86,1(6623325781,7,(6:(%/2* %86,1(6623325781,7,(6:(%/2*
,QQRYDWLRQ&DQ%H/HDUQHG 'U\&OHDQLQJ'HOLYHU\%L]RS
-8/30 -8/$0
$FFRUGLQJWR9HQWXUH%HDWPRVWSHRSOHWKLQNRILQQRYDWLRQDVD
³(XUHND´PRPHQW±RUVRPHWKLQJWKDWFRPHVIURPKRXUVXSRQKRXUVRI
WLQNHULQJ
%XW-RVK0DNRZHU&(2RI([SORUD0HGDUJXHVWKDW
LQQRYDWLRQLVDVNLOOWKDWFDQEHWDXJKWLQWKLV(QWUHSUHQHXU
7KRXJKW/HDGHUOHFWXUHJLYHQDW6WDQIRUG8QLYHUVLW\
%\VWXG\LQJZKDWSURSHOVLQQRYDWLRQKHVD\VSHRSOHFDQ
GHYHORSWKHLURZQVNLOOVDQGEUHDNQHZJURXQG
:KLOHLWFRXOGEHDUJXHGWKDWVRPHVHUYLFHVWHQGWRVHHDGHFOLQHZKHQ
SHRSOHDUHWU\LQJWRVSHQGOHVV,WKLQNZHFDQDOODJUHHWKDWEXV\SHRSOH
%86,1(6623325781,7,(6:(%/2* ZKRZHDUDORWRIGU\FOHDQRQO\FORWKLQJIRUEXVLQHVVZRQ¶WVWRSXVLQJ
WKDWVHUYLFHDQ\WLPHVRRQ:KHUH\RXKDYHDEXV\SHUVRQLQQHHGRI
:RUOG&XS0DNHV3URGXFWLYLW\ FOHDQFORWKLQJ\RXDOVRKDYHWKHRSSRUWXQLW\IRUDEXVLQHVV
'LYH/LNH&ULVWLDQR5RQDOGR 'U\&OHDQLQJ5RXWHVRIIHUVDZHDOWKRILQIRUPDWLRQDERXWGU\FOHDQLQJ
-8/$0 GHOLYHU\DQGKRZWRVWDUW\RXURZQEXVLQHVVLQWKHLQGXVWU\$OVRDQ
HQWUHSUHQHXUZKRKDVVHHQVXFFHVVLQWKHEXVLQHVVWKLVZHEVLWHZDV
7KH:RUOG&XSGRHVQ¶WPDNHSHRSOHOD]\LWMXVWUHIRFXVHVWKHLUDWWHQWLRQ FUHDWHGDVDUHVRXUFHWRVKRZRWKHUVKRZWKH\FDQGRZKDWKHKDVDOUHDG\
DQGNLOOVSURGXFWLYLW\$QHZLQIRJUDSKLFIURP,QVLGH9LHZPDNHVWKLV GRQH,QIRUPDWLRQLVVKDUHGLQWKHIRUPRIDIUHHSDUWYLGHRVHULHV
DEXQGDQWO\FOHDU&OLFNWKHLPDJHIRUDODUJHUYHUVLRQ
,¶OOVKRZ\RXWKHPRVWSRSXODUZD\VWRPDUNHW\RXU
GU\FOHDQLQJURXWHEXVLQHVVDQGJRRYHUWKH3UR¶VDQG
&RQ¶VIRUHDFKRIWKHGU\FOHDQLQJPDUNHWLQJPHWKRGV
/HDUQKRZWREHLQWKHGU\FOHDQLQJURXWHEXVLQHVVHYHQ
LI\RXGRQ¶WRZQDGU\FOHDQHU,GRQ¶WRZQDGU\FOHDQHU
EXW,GRRZQODUJHGU\FOHDQLQJURXWHV\RXFDQGRWKH
VDPH
*HWDQLQVLGHORRNDWWKHPRVWSRSXODUDQGSRZHUIXOGU\
FOHDLQJURXWHVRIWZDUHDYDLODEOHWRUXQ\RXUGU\
FOHDQLQJGHOLYHU\EXVLQHVV7KLVVRIWZDUHFRPSOHWO\
PDQDJHV\RXUGD\WRGD\RSHUDWLRQVDQGHYHQKHOSV
ZLWK\RXUGU\FOHDQLQJPDUNHWLQJDFWLYLWHV
6FUHHQVKRWIURP'U\&OHDQLQJ5RXWHV
)<,&ULVWLDQR5RQDOGRLVDJUHDWSOD\HUIRU3RUWXJDOZKR¶VIDPRXVIRU
IDOOLQJGRZQ

-XO\
7RGD\·V7DEEORLG
'$01,:,6+,¶'7+28*+72)7+$7 \RXUVWXIIGURSZKDWWKH\DUHGRLQJDQGVD\³<RX¶YHJRWWRVHHWKLV"´
$UHWKH\LQVSLUHGWRWZHHWVKDUHOLNHIULHQGIRUZDUGRUUXQGRZQWKH
:RXOGDQ\ERG\WHOODIULHQG" KDOODQGVWLFNLWLQWKHIDFHRIDFRZRUNHURUIDPLO\PHPEHU"
$QG\6HUQRYLW] +XJK ,IQRW²,FRPSHO\RXWRPDNHLW:21'(5)8/2875$*(286

3853/('(/,&,28660(//<*22)</,)(6$9,1*$0$=,1*
0DF/HRGFKDOOHQJH\RXWRDVN 25'((3/<0($1,1*)8/
WKHELJTXHVWLRQ 3XWWKLVRQWKHZDOO
-8/$0
:RXOGDQ\ERG\WHOODIULHQG"
7KLVTXHVWLRQVKRXOGEHWDSHGWR\RXUFRPSXWHUPRQLWRUVWXFNLQ\RXU
ZDOOHWDQGKXQJLQ\RXUFRQIHUHQFHURRP$QGWKDQNVWRWKHDPD]LQJ
+XJK0DF/HRG²RQHRIRXUEULOOLDQWDXWKRUVVSHDNLQJDW:RUGRI
,W¶VDQLPSRUWDQWTXHVWLRQ 0RXWK6XSHUJHQLXV²\RXFDQPDNHLWORRNDZHVRPHZKHQ\RXSRVWLW
,W¶VDTXHVWLRQWKDWUDLVHVWKHEDUWKDWPDNHV\RXEHWWHUWKDWFKDQJHV *HWDIDQF\ILQHDUWSULQWE\YLVLWLQJ+XJK¶VDUWJDOOHU\6KRZRII\RXU
\RXUFRPSDQ\IRUHYHU :20SULGHE\JHWWLQJDVKLUWKDWRUSRVWHUDWRXU:20VWRUH
<RXRQO\KDYHWZRFKRLFHV%HVRVSHFLDOWKDWSHRSOHZDQWWRWDONDERXW 0HHW+XJK
\RX²RUEX\DGYHUWLVLQJ
+XJK¶VUHPDUNDEOHFXVWRPFUHDWLRQLVWKHUDOO\IODJIRURXU:RUGRI
%HLQWHUHVWLQJ²RUEHLQYLVLEOH 0RXWK6XSHUJHQLXVFRQIHUHQFH0HHW+XJKDQGRWKHUDPD]LQJ
PDUNHWHUVOLYHDW-XO\LQ1HZ<RUN
%HFDXVHEHLQJJRRGLVGLIIHUHQWWKDQEHLQJZRUWKWDONLQJDERXW0DNLQJD
JRRGSURGXFWLVQ¶WJRRGHQRXJKDQ\PRUH(YHU\RQHGRHVWKDWWKHVHGD\V 2XUSURPLVH,QVSLULQJDGYLFH\RXFDQDFWXDOO\XVHWRJHWSHRSOHWDONLQJ
DERXW\RX7KLVLVDSUDFWLFDO\RXFDQGRLWEORZ\RXUPLQGZLWK
&KDQJHWKHJDPH UHVXOWVNLQGRIGD\)LQGRXWKRZ
3XVK\RXUVHOIWRDVN$UHZHEHLQJUHPDUNDEOH",VWKLVDSXUSOHFRZ"
$UHZHDZHVRPH\HW"
&KDOOHQJH\RXUVHOIWREHZRUWKWDONLQJDERXW:RXOGVRPHRQHORRNDW

+DSS\,QGHSHQGHQFH'D\IURP'DQH&DUOVRQ¶V%XVLQHVV
2SSRUWXQLWLHV:HEORJ
6KDUH 6(7+¶6%/2*
7KHWKHRU\RIWKHFDVH
-8/$0
+HUH¶VDZD\WRJHWPRUHVWUDWHJLF
%86,1(6623325781,7,(6:(%/2* ,QVWHDGRIDUJXLQJIRUDFRXUVHRIDFWLRQEDVHGRQWKHVWDWXVTXRRU\RXU
HPRWLRQDOJXWGHVFULEHWKHWKHRU\RIWKHFDVH
(QWUHSUHQHXU¶V'HFODUDWLRQRI
$LVWUXH
,QGHSHQGHQFH
-8/$0 %LVWUXH
,IZHGR&WKHQ$DQG%VKRXOGSHUPLWXVWRJHW'
7KHPHWKRGRIWKLVVWUDWHJLFDQDO\VLVLVWKDW\RXH[SRVH\RXU
DVVXPSWLRQV\RXGHVFULEH\RXUDFWLRQVDQG\RXUSRVLWWKHUHVXOWV7KLV
SHUPLWV\RXUWHDPPDWHVWRVXSSO\IDFWVWKDWPLJKWFKDQJH\RXUDQDO\VLV
:DLW$LVQ¶WWUXH
:DLWZH¶UHQRWFDSDEOHRIGRLQJ&
:DLWLIZHGLG&LW¶VQRWFOHDUZHZRXOGJHW'7HOOXVKRZWKDWZRXOG
ZRUN
7KLVLVIDUPRUHXVHIXOWKDQVD\LQJ³,KDWH\RX\RX¶UHDQLGLRW´%\
PDNLQJ\RXUDVVXPSWLRQVDQGORJLFFOHDU\RXDOORZDPRUHSURGXFWLYH
:KHQLQWKHFRXUVHRIEXVLQHVVDVXVXDOLWEHFRPHVQHFHVVDU\IRURQH FRQYHUVDWLRQWRWDNHSODFHDWWKHVDPHWLPHJHWEX\LQIURP\RXU
SHRSOHWRGLVVRYOHWKHHFRQRPLFEDQGVZKLFKKDYHFRQQHFWHGWKHPZLWK WHDPPDWHVZKRPLJKWEHFRPLQJIURPDGLIIHUHQWZRUOGYLHZWKDQ\RX
DQRWKHUDQGWRDVVXPHDPRQJWKHSRZHUVRIWKHHDUWKWKHVHSDUDWHDQG GR
HTXDOVWDWLRQWRZKLFKWKH/DZVRI1DWXUHVDQGRI1DWXUH¶V*RGHQWLWOH
WKHPDGHFHQWUHVSHFWWRWKHRSLQLRQVRIWKHPDUNHWSODFHUHTXLUHVWKDW (YHQEHWWHU\RXFDQWKHQZHDYHWKHFDVHLQWRDVWRU\DYLYLGRQHWKDW
WKH\VKRXOGGHFODUHWKHFDXVHVZKLFKLPSHOWKHPWRWKH UHVRQDWHV
HQWUHSUHQHXULDOLVP
,IDQ\RI\RXUVWHSVLQYROYHGRLQJVRPHWKLQJWKDW¶VQHYHUEHHQGRQH
:HKROGWKHVHWUXWKVWREHVHOIHYLGHQWWKDWDOOPHQDUHFUHDWHGHTXDO EHIRUH\RX¶OONQRZZKHUH\RXQHHGWRIRFXV\RXUHQHUJ\
WKDWWKH\DUHHQGRZHGE\WKHLU&UHDWRUZLWKFHUWDLQXQDOLHQDEOHULJKWV
WKDWDPRQJWKHVHDUH/LIH/LEHUW\DQGWKHSXUVXLWRISURILW7KDWWR 7RRRIWHQSHRSOHIL[DWHRQDUHVXOWWKH\ZDQWDQGSUHVXPHWKDWLIWKH\
VHFXUHWKHVHULJKWVVWDUWXSVDUHLQVWLWXWHGDPRQJ0HQGHULYLQJWKHLU MXVWWU\UHDOO\KDUGZLWKJRRGLQWHQWWKHQPD\EHLW¶OOKDSSHQ
IHDWXUHVIURPWKHLUIRXQGHUV7KDWZKHQHYHUDQ\)RUPRI%XVLQHVV
EHFRPHVGHVWUXFWLYHRIWKHVHHQGVLWLVWKH5LJKWRIWKH3HRSOHWRDOWHURU 36LIRQHRIWKHVWHSVLV³DQGWKHQDPLUDFOHKDSSHQV´\RXSUREDEO\
WRDEROLVKLWDQGWRLQVWLWXWHQHZFRPSDQ\OD\LQJLWVIRXQGDWLRQRQVXFK QHHGWRZRUNRQ\RXUFDVHDELW
SULQFLSOHVDQGRUJDQL]LQJLWVSRZHUVLQVXFKIRUPDVWRWKHPVKDOOVHHP
PRVWOLNHO\WRHIIHFWWKHLUSURILWDELOLW\«

'$01,:,6+,¶'7+28*+72)7+$7
:RUNLQJRXWRIRXU'XEDLRIILFH
IRUWKHKROLGD\
-8/30
$FWXDOO\LW¶VMXVWDFRROVHWLQWKH0LFURVRIW&KLFDJRRIILFH
6KDUH

-XO\
7RGD\·V7DEEORLG
'$01,:,6+,¶'7+28*+72)7+$7 %86,1(6623325781,7,(6:(%/2*
$FODVVLFWUDGHVKRZSURPRWLRQ 6XUYLYLQJ$3URGXFW5HFDOO
-8/$0 -8/$0
6HWK*RGLQDQG0HJDQ&DVH\RI6TXLGRRJDYHRXWWKHVHVKLUWVDWDQH%D\
FRQIHUHQFH&OLFNWRVHHDFORVHXS7KHJUHDWFRS\VSHDNVIRULWVHOI
,QFFRP
$IXOOEORZQSURGXFWUHFDOOLVDFRPSOLFDWHGDQGKLJKO\
UHJXODWHGSURFHVVZLWKWKHSRWHQWLDOIRUPRUHWKDQMXVWEDG
6KDUH SUHVV²OHJDOFRPSOLFDWLRQVDOVRDULVHZKHQDFRPSDQ\
UHDOL]HVRQHRILWVSURGXFWVKDVWKHSRWHQWLDOWRFDXVHKDUPRU
LQMXU\WRFRQVXPHUV7RJHWDQXQVDIHSURGXFWRIIWKHPDUNHW
DVTXLFNO\DVSRVVLEOHDQGZLWKPLQLPDOIDOORXWWR\RXU
FXVWRPHUV²DQG\RXUUHSXWDWLRQ²IROORZRXUJXLGHWR
VXUYLYLQJDSURGXFWUHFDOO
:KLOHWKLVPD\EHKDUGWRGRVRPHWLPHVWKHXOWLPDWHZD\RIKDQGOLQJD
SURGXFWUHFDOOLVE\SODQQLQJDKHDGRIWLPHIRULW1RZFHUWDLQWKLQJVPD\
FKDQJHLQ\RXUSODQVZKHQWKHWLPHFRPHVIRUWKHUHFDOOGHSHQGLQJRQ
WKHSURGXFWEXW\RXFDQVWLOOKDYHVRPHVRUWRIDJDPHSODQOLQHGXS
6LWGRZQZLWKDOORI\RXUHPSOR\HHVDQGVHWXSVRPHVRUWRIV\VWHP
ZKHUHHYHU\RQHKDVWKHLURZQUROHLQZKDWWKH\ZLOOKDQGOHLIDUHFDOO
KDSSHQV$QRWKHUJUHDWWKLQJWRUHVHDUFKLVDOORIWKHODZVWKDWPD\
SHUWDLQWR\RXLQWKHFDVHRIDSURGXFWUHFDOO
1H[W\RXVKRXOGVHWXSDFKDLQRIFRPPDQG7KLVZD\WKHPLQXWH\RX
ILQGRXWDERXWDUHFDOORQDSURGXFWWKHDFWLRQVRIZKDWQHHG¶VWREHGRQH
FDQEHVHWLQPRWLRQLPPHGLDWHO\
/DVWWKLQJWKDW\RXVKRXOGGRLQ\RXUSODQQLQJLVRQFHHYHU\WKLQJLV

ZULWWHQXSDQGWKHUHLVDFRPSOHWHPDQXDOIRULW\RXQHHGWRWHVWLWRXW
OLNH\RXZRXOGDQ\WKLQJHOVHLQEXVLQHVV6HWXSVRPHVRUWRIDSUHWHQG
UHFDOOVLWXDWLRQVRWKDW\RXDQG\RXUVWDIIFDQUXQWKURXJKWKHPDQXDO
\RXZURWHFRYHUWRFRYHUDQGHQVXUHWKDW\RXUV\VWHPZLOOZRUNWKHUH
FDQDOZD\VEHWZHDNLQJDWDODWHUGDWH 6(7+¶6%/2*
:KDW¶VWKHSRLQW"
-8/$0
$QLGHDWXUQVLQWRDPHHWLQJDQGWKHQLWWXUQVLQWRDSURMHFW3HRSOHJHW
%86,1(6623325781,7,(6:(%/2* EURXJKWDORQJWKHUH¶VIUHHGRQXWVWKHUH¶VDZKLWHERDUGDQGHYHQD
FRQIHUHQFHFDOO
6LJQV7KDW<RXU&RQWHQW6XFNV
-8/$0 ,WIHHOVOLNH\RX¶UHGRLQJWKHZRUNEXWDWVRPHSRLQWKRSHIXOO\VRPHRQH
DVNV³ZKDW¶VWKHSRLQWRIWKLV"´
,VLWZRUWKGRLQJ"
&RPSDUHGWRHYHU\WKLQJHOVHZHFRXOGEHLQYHVWLQJGRQ¶WVD\µVSHQGLQJ¶
RXUWLPHRQLVWKLVWKHVFDULHVWPRVWOLNHO\WRSD\RIIPRVWLPSRUWDQWRU
WKHEHVWORQJWHUPHQGHDYRU"
2UDUHZHMXVWGRLQJLWEHFDXVHQRRQHKDGWKHJXWVDORQJWKHZD\WRVD\
6723
$UH\RXGRLQJZRUNZRUWKGRLQJRUDUH\RXMXVWGRLQJ\RXUMRE"
:KHWKHU\RXUGHDOLQJZLWKDEORJVLWHRUMXVWZULWLQJFRQWHQWIRU\RXU
6(7+¶6%/2*
EXVLQHVVLQJHQHUDO\RX,¶PVXUHDOZD\VZRQGHUKRZ\RXUGRLQJ,V\RXU
FRQWHQWJRRGHQRXJK":LOOSHRSOHDFWXDOO\EHUHDGLQJDQGHQMR\LQJZKDW
\RXDUHZULWLQJRUZLOOWKH\VLPSO\JHWWRWKH7KOLQHLQWKHILUVW
:KDW¶VWKHSRLQW"
-8/$0
SDUDJUDSKDQGFORVHWKHDUWLFOH",KDYHSXWWRJHWKHUDIHZVLJQVWKDW\RXU
FRQWHQWLVQRWWKDWJUHDWWKDWLUHFHQWO\UHDGDERXWLQDQDUWLFOHSRVWHGRQ
$QLGHDWXUQVLQWRDPHHWLQJDQGWKHQLWWXUQVLQWRDSURMHFW3HRSOHJHW
&RS\%ORJJHU
EURXJKWDORQJWKHUH¶VIUHHGRQXWVWKHUH¶VDZKLWHERDUGDQGHYHQD
FRQIHUHQFHFDOO
,I\RXKDGWRUDWH\RXUFRQWHQWRQDVFDOHRIWRZKDW
ZRXOG\RXJLYHLW"$"$"7KDW¶VZKDWPRVWEORJJHUVVD\
,WIHHOVOLNH\RX¶UHGRLQJWKHZRUNEXWDWVRPHSRLQWKRSHIXOO\VRPHRQH
%XWKHUH¶VWKHSUREOHP\RXFDQ¶WUHDOO\JUDGHFRQWHQWRQD
DVNV³ZKDW¶VWKHSRLQWRIWKLV"´
VFDOH<RX¶UHHLWKHUEORZLQJSHRSOH¶VPLQGVRUSXWWLQJWKHP
WRVOHHSDQGWKHUH¶VQRWKLQJLQEHWZHHQ3XWDQRWKHUZD\
,VLWZRUWKGRLQJ"
FRQWHQWJUDGHGDVDRUJHWVWKHVDPHUHDFWLRQDVD,W¶VD
ZDVWHRIWLPHWRSXEOLVKLW
&RPSDUHGWRHYHU\WKLQJHOVHZHFRXOGEHLQYHVWLQJGRQ¶WVD\µVSHQGLQJ¶
RXUWLPHRQLVWKLVWKHVFDULHVWPRVWOLNHO\WRSD\RIIPRVWLPSRUWDQWRU
$VXUHVLJQWKDW\RXQHHGWRZRUNRQ\RXUFRQWHQWLVLI\RXQRWLFHWKDW
WKHEHVWORQJWHUPHQGHDYRU"
\RXDUHEDUHO\JHWWLQJLIDQ\DWDOOFRPPHQWVRQ\RXUDUWLFOHV
2UDUHZHMXVWGRLQJLWEHFDXVHQRRQHKDGWKHJXWVDORQJWKHZD\WRVD\
7U\WLPLQJ\RXUVHOIDQGVHHKRZPXFKHIIRUWDQGWLPH\RXSXWLQWRHDFK
6723
DUWLFOH,I\RXUSXWWLQJOHVVWKDQDQKRXULQWRHDFKDUWLFOHWKHQLW¶VDJRRG
FKDQFHWKH\DUHQRWJRRGHQRXJK
$UH\RXGRLQJZRUNZRUWKGRLQJRUDUH\RXMXVWGRLQJ\RXUMRE"
/DVWEXWQRWOHDVWLVLI\RXDUHUHFHLYLQJPXFKOHVVWUDIILFWKHQ\RXWKLQN
\RXVKRXOGEHJHWWLQJWKHQWKDWLVDVXUHVLJQWKDW\RXUFRQWHQWLVQRWXS
WRSDUDQGQHHGVWREHUHZURWH

7+(60$573$66,9(,1&20(%/2* IODPHVDQGVSDUNV
0\0RQWKO\5HSRUW±-XQH :HZDQWHGWKLVDSSURYHGE\PLG-XQHVRZHFRXOGSXVKDPDUNHWLQJ
HIIRUWIRUWKHWKRI-XO\FHOHEUDWLRQKHUHLQWKH8QLWHG6WDWHV:HOO±
ZKHQZHVXEPLWWHGWKHDSSWR$SSOHLWZDVUHMHFWHGRQHZHHNODWHU
-8/$0 EHFDXVH
³«ZHKDYHGHWHUPLQHGWKDWWKLVDSSOLFDWLRQFRQWDLQVPLQLPDOXVHU
IXQFWLRQDOLW\DQGZLOOQRWEHDSSURSULDWHIRUWKH$SS6WRUH´
+PP
7RXVWKLVZDVDVXUSULVH:K\"%HFDXVHWKHUHDUHWKRXVDQGVRI
DSSOLFDWLRQVWKDWKDYHWKHVDPHLIQRWOHVVXVHUIXQFWLRQDOLW\WKDQRXUV
6RZHDGGHGDOLWWOHELWPRUHWRWKHDSSOLFDWLRQUHVXEPLWWHGLWDQGLW
ZDVUHMHFWHGRQFHDJDLQ$WWKLVSRLQWLIZHUHVXEPLWWHGLWZRXOGQ¶WPDNH
WKH-XO\WKGHDGOLQHVRZHMXVWGXPSHGWKHSURMHFW
,W¶VWKHEHJLQQLQJRIDQHZPRQWKZKLFKPHDQVLW¶VWLPHIRUDQHZ 1RZZHKDYHVHYHUDOQHZDSSOLFDWLRQVRQGHFNIRU-XO\/HW¶VKRSHWKHVH
PRQWKO\LQFRPHUHSRUW(YHU\PRQWK,ZULWHRXWDGHWDLOHGUHSRUW RUJHWDSSURYHG>FURVVHVILQJHUVZKLOHNQRFNLQJRQZRRGDQG
VKRZLQJH[DFWO\ZKHUHP\RQOLQHHDUQLQJVFRPHIURP$OWKRXJK,VKDUH UXEELQJDUDEELW¶VIRRW@
DOORIP\LQFRPHGRZQWRWKHSHQQ\LW¶VQRWUHDOO\DERXWWKHQXPEHUV±
LW¶VPRUHDERXWZKDW,¶YHEHHQXSWRWKDWPD\KDYHKDGDQLPSDFWRQP\ *UHHQ([DP$FDGHP\
HDUQLQJVDQGVKDULQJWKDWZLWK\RXVR\RXFDQOHDUQIURPERWKP\
VXFFHVVHVDQGP\IDLOXUHV ,¶YHEHHQZRUNLQJZLWKP\ZHEVLWHGHVLJQWHDPIURP%OD]HU6L[RQDQHZ
FDPSDLJQWRKHOSGULYHPRUHVDOHVWRP\VWXG\JXLGHVDQGSUDFWLFHH[DPV
/HW¶VJHWWRLW« RQJUHHQH[DPDFDGHP\FRP
,PSRUWDQW*RLQJ2QVLQ-XQH %DVHGRQDVXJJHVWLRQIURPP\WRWDOO\DZHVRPHZHHNO\PDVWHUPLQG
JURXS,¶OOEHLPSOHPHQWLQJD)5((SUDFWLFHWHVWRQWKHZHEVLWH7KH
3HUXVXDO,¶YHEHHQGRLQJDORWRIZRUNODWHO\WRDV,OLNHWRVD\³H[SDQG SUDFWLFHWHVWZLOOWDNHSHRSOHWKURXJKDVPDOOQXPEHURIH[DPTXHVWLRQV
P\SDVVLYHLQFRPHSRUWIROLR´ WKDWDUHVLPLODUWRWKHUHDOH[DPVSLWRXWDVFRUHDQGWKHQUHFRPPHQG
P\SURGXFWVDVVROXWLRQVWRKHOSLPSURYHWKHLUVFRUHVDQGEHUHDG\IRU
:KDW,PHDQE\WKDWLV,KDYHDQXPEHURIYLUWXDOO\DXWRPDWLFLQFRPH WKHUHDOWKLQJ
VWUHDPVZRUNLQJIRUPHDOUHDG\DQGEHFDXVHWKH\DUHSDVVLYH,FDQXVH
P\IUHHWLPHWRFUHDWHQHZDYHQXHVRILQFRPH$V\RX¶OOVHHLQWKH ,ILPSOHPHQWHGFRUUHFWO\,DPDEVROXWHO\SRVLWLYHWKDWWKLVZLOOLQFUHDVH
LQFRPHEUHDNGRZQODWHULQWKLVSRVWVRPHRIWKHWKLQJV,GRRQOLQH VDOHV%HFDXVHSRWHQWLDOFXVWRPHUVDUHWDNLQJDSUDFWLFHH[DPRQP\VLWH
HDUQDORWZKLOHRWKHUWKLQJV,GRHDUQRQO\DOLWWOH(LWKHUZD\WKH\DUH WKH\ZLOOEHLQWKHSHUIHFWPLQGVHWWRWKLQNDERXWLPSURYLQJWKHLU
DOODSDUWRIP\GLYHUVLILHGSDVVLYHLQFRPHSRUWIROLR NQRZOHGJHRIWKHPDWHULDOLPPHGLDWHO\DIWHUWKH\JHWWKHLUWHVWUHVXOWV
DQGSUREDEO\EHPRUHLQFOLQHGWRPDNHDSXUFKDVH
L3KRQH$SSV
)XUWKHUPRUHEHFDXVHWKHH[DPLVIUHHDQGDFWXDOO\XVHIXOLWZRQ¶WMXVW
,Q0D\RIWKHL3KRQHDSSFRPSDQ\WKDW,FRIRXQGHG/2/HU$SSV WHOOSHRSOHZKDWWKH\JRWULJKWRUZURQJEXWDOVRH[SODLQLQGHWDLOZK\
LWXQHVOLQNUHOHDVHGDWRWDORIQHZDSSOLFDWLRQV\LHOGLQJWKHKLJKHVW LWVKRXOGGULYHPRUHWUDIILFDVZHOO,FRXOGHDVLO\VHWXSDQDGFDPSDLJQ
DPRXQWRIHDUQLQJVZH¶YHHYHUKDGLQDVLQJOHPRQWK±DOPRVWN IRUWKLVRUVSUHDGWKHZRUGLQIRUXPV
,Q-XQHRIZHRQO\PDQDJHGWRJHWQHZDSSOLFDWLRQVDSSURYHG :H¶OOVHHKRZLWJRHVEXW,¶PUHDOO\H[FLWHGWRILQDOO\KDYHVRPH
2WKHUVWKDWZHKDGSODQQHGWRJROLYHZHUHUHMHFWHGE\$SSOH HQWKXVLDVPEHKLQGP\WRSHDUQLQJVLWHRQFHDJDLQ,W¶VEHHQRQDXWR
SLORWIRUVRORQJWKDW,IRUJRWZKDWLWIHOWOLNHWRPDNHLPSURYHPHQWVDQG
2QHUHMHFWHGDSSLQSDUWLFXODUQDPHG6SDUNOHU±0XOWLFRORUHG H[SHFWUHVXOWV,VKRXOGDOZD\VEHLPSURYLQJWHVWLQJDQG
)LUHZRUNVZHZHUHTXLWHXSVHWDERXW7KHDSSLVVLPSOHSUHVVDEXWWRQ RSWLPL]LQJ8QIRUWXQDWHO\,KDYHQ¶WEHHQGRLQJVR
DQGLWVKRZVDVSDUNOHUEXUQLQJRQWKHVFUHHQURWDWLQJEHWZHHQWKH
FRORUVUHGZKLWHDQGEOXH$VSDUNOHUIRUWKRVHRI\RXZKRGRQ¶WNQRZ 'RQ¶WPDNHWKDWVDPHPLVWDNH
LVDW\SHKDQGKHOGILUHZRUNWKDWEXUQVVORZO\ZKLOHHPLWWLQJFRORUHG

7KH6PDUW3DVVLYH,QFRPH%ORJ ,¶PQRWJRLQJWRJHWLQWRGHWDLOKHUHWRGD\EXWWKHWUXWKLVWKDW,¶PJRLQJ
LQWRWKLVZLWKDQRSHQPLQGDQGWRVHHLIWKLV³V\VWHPÚHDOO\ZRUNV,ILW
$ORWRIJRRGVWXIIKDSSHQHGIRU63,LQ-XQH GRHVDZHVRPH,IQRWWKHQDZHVRPHEHFDXVHWKHQ,ZRQ¶WZRQGHU
DQ\PRUH
0\ILUVWZHELQDUZDVDVXFFHVV,WZDVQ¶WSHUIHFWEXW,OHDUQHGDORWDERXW
ZHELQDUVDQG,GHILQLWHO\SODQRQGRLQJPRUHLQWKHIXWXUH,I\RXPLVVHG 3OXV,¶PXVLQJ0DUNHW6DPXUDLLQFRPELQDWLRQZLWKILQGLQJWKHVHQLFKH
LW\RXFDQFDWFKWKHIUHHUHSOD\KHUH7KHWUDQVFULSWLVDYDLODEOHQRZDV VLWHVVRVXSSRVHGO\LWFRXOGEHOLNHVKRRWLQJILVKLQDEDUUHORU³HDV\DV
ZHOO SLH´
6HFRQGO\,ZDVYHU\IRUWXQDWHWREHIHDWXUHGLQVHYHUDOSODFHVDURXQGWKH ,JXHVVZH¶OOVHH,¶OONHHS\RXSRVWHG
ZHE
7LPHIRUWKHEUHDNGRZQ
0\9LGHR,QWHUYLHZZLWK7\URQH6KXP
,QFRPH%UHDNGRZQ
*XHVW3RVWRQ'DLO\%ORJ7LSV5HDVRQV:K\<RX6KRXOG
5HVSRQGWR(YHU\&RPPHQW *UHHQ([DP$FDGHP\FRP3URGXFW6DOHV
*XHVW3RVWRQ6WUXJJOLQJ,QYHVWRU,PSURYLQJ<RXU0DUNHW (ERRN2QO\
&RQYHUVLRQVZLWK385/V
$XGLR2QO\
$QDUWLFOHWKDWZDVV\QGLFDWHGRYHUKXQGUHGVRIQHZVVLWHV
6KRHVWULQJ/LYLQJ:KDWLV³3DVVLYH,QFRPH´" (ERRN$XGLR3DFNDJH
7KLUGO\,ZDVUHDOO\KDSS\DERXWWKHILQDOVHULHVRISRVWVWKDW,ZURWHIRU 7RWDO
WKHPRQWKRI-XQH0\<RX7XEH7ULFNVIRU%ORJJHUVSDUWVHULHVKDGD
JUHDWUHVSRQVHDQG,SODQRQFUHDWLQJDVPDOOUHSRUWRUH%RRNWKDWZLOO /DVW0RQWK
EHIUHHRIFKDUJHIRU\RXODWHURQPXFKOLNHKRZH%RRNVWKH6PDUW:D\
LV,VWKDWVRPHWKLQJ\RX¶GEHLQWHUHVWHGLQJHWWLQJ" 'LIIHUHQFH
)RXUWKO\,¶YHEHHQGRLQJP\EHVWWRLPSOHPHQWVRPHPRUHRQVLWH6(2 H+RZ(DUQLQJV
VWUDWHJLHVIRUWKLVEORJPDLQO\EHFDXVH,¶YHEHHQVWXFNRQ35IRUWKH
ORQJHVWWLPHDQGLW¶VEHJLQQLQJWRERWKHUPHDOLWWOH 7RWDO
<HV±,NQRZ3DJHUDQNGRHVQ¶WUHDOO\PDWWHUDQG,VKRXOGMXVWIRFXVRQ /DVW0RQWK
P\FRQWHQWDQGZKDW¶VLPSRUWDQWEXWLWLVDQLQGLFDWRUWKDW,PD\QRWEH
GRLQJDOO,FDQWRRSWLPL]HP\EORJZKLFKPD\UHVXOWLQOHVVWUDIILFWKDQ 'LIIHUHQFH
SRVVLEOH
$IILOLDWH(DUQLQJV
6RZLWKWKHKHOSRIDVZHHWSRVWDERXW:RUG3UHVV6(2IURPP\JRRG
EXGG\*OHQIURP9LSHUFKLOOFRP,¶YHPDGHDIHZFKDQJHVDQGKRSHWR *UHHQ([DP$FDGHP\
VHHDQLQFUHDVHLQUDQNLQJVLQWKHIXWXUH
%OXHKRVWFRP
1LFKH6LWHV
$PD]RQ$VVRFLDWHV
7KLVLVQHZIRUPH
$ZHEHU
$FWXDOO\,¶YHGRQH³QLFKHVLWHVÉHIRUHEXWWKH\DOOGLHGEHFDXVH,GLGQ¶W
KDYHWKHSDVVLRQWRFRQWLQXHZULWLQJDERXWVRPHWKLQJ,ZDVQ¶WWKDW ,QWHUQHW%XVLQHVV0DVWHU\$FDGHP\
LQWHUHVWHGLQ
L3KRQH$SSVZR([SHULHQFHH%RRN
+RZHYHUWKLVWLPHLW¶VDOLWWOHGLIIHUHQW7KLVWLPH,¶PXVLQJD
VXSSRVHGO\SURYHQV\VWHP\HVLWVRXQGVYHU\VNHSWLFDODOUHDG\WR 0DUNHW6DPXUDL
FUHDWHQLFKHVLWHVWKDWUXQPRUHRQDXWRSLORW$IWHUDIHZSLHFHVRIVHWXS
,FRXOGSRVVLEO\HDUQDQLQFRPHIRUDORQJSHULRGRIWLPH 7RWDO

/DVW0RQWK 8QOLNHZKDW\RXVHHIURPRWKHUPDUNHWHUVRQOLQH,GLGQRWKHDYLO\SXVK
WKLVSURGXFWRUEHFRPHDQDJJUHVVLYHVDOHVPDQIRULW,QIDFW,GLGMXVW
'LIIHUHQFH WKHRSSRVLWHDQG\HW,ZDVVWLOODEOHWRHDUQDGHFHQWDPRXQWRILQFRPH
IURPSURPRWLQJLW)RUH[DPSOH
L3KRQH$SSOLFDWLRQV
,XVHG0DUNHW6DPXUDLDVDVXSSOHPHQWWRWHDFKLQJ.H\ZRUG
3DLG$SSV 5HVHDUFKDQG6HDUFK(QJLQH2SWLPL]DWLRQ7KHFRQWHQWRIWKH
YLGHRVEORJSRVWDQGZHELQDU,GLGZHUHDOODERXWWKHFRQWHQW,
)UHH$SSV VLPSO\UHFRPPHQGHG0DUNHW6DPXUDLEDVHGRQP\SHUVRQDO
H[SHULHQFHWRKHOS
7RWDO
,WROGSHRSOHWKDWWKHUHDUHDFWXDOO\ZD\VWRGRHYHU\WKLQJ\RXFDQ
/DVW0RQWK GRRQ0DUNHW6DPXUDLIRUDEVROXWHO\IUHHDQGHYHQRIIHUHGVRPH
WRROVDQGVXJJHVWLRQVDERXWKRZWRGRWKLV
'LIIHUHQFH
,WROGSHRSOHVWUDLJKWXSWKDWWKHOLQN,SURYLGHGZDVLQGHHGDQ
*URVV7RWDOLQ-XQH DIILOLDWHOLQNDQGWKDWLIWKH\WULHGWKHIUHHWULDODQGGLGQ¶WHQGXS
SXUFKDVLQJLW,ZRXOGWRWDOO\XQGHUVWDQG
/DVW0RQWK
,VKRZHGSHRSOH(;$&7/<ZKDWLWGRHVDQGKRZWRXVHLW
'LIIHUHQFH
$VRQHSHUVRQZURWHWRPHLQDQHPDLODIWHU,OLWHUDOO\DVNHGWKHSHUVRQ
$OWKRXJKWKHPRQWKLVDERXWNOHVVWKDQLQ0D\LW¶VVWLOODVWHOODU ZK\WKH\WRRNP\UHFRPPHQGDWLRQ
PRQWKRIHDUQLQJV,W¶VJUHDWWRVHHWKHOLVWRILQFRPHVWUHDPVJURZLQJ
DQGDOWKRXJKVRPHJRXSDQGVRPHJRGRZQKDYLQJPXOWLSOHLQFRPH 7KHUH¶VDFWXDOO\DFRXSOHRIWKLQJVWKDWVROGPH
VWUHDPVKHOSWRNHHSP\VHOIVRPHZKDWEDODQFHG
<RXVDLG\RXXVHWKLVHYHU\GD\
,PSRUWDQW7KLQJV,/HDUQHGLQ-XQH
<RXUHFRPPHQGHGLWDQG,WUXVW\RX
,I,GUHZDFKDUWRIP\L3KRQHDSSHDUQLQJVZH¶GVHHDKXJHVSLNHLQ0D\
DOPRVWNDQGWKHQDKXJHGURSLQ-XQHGRZQWRDERXWN <RXVKRZHGXVKRZWRXVHLW
DOWKRXJKWKLVLVPXFKKLJKHUWKDQRXUDYHUDJHEHIRUH0D\:KHQ\RX
VHHWKLQJVOLNHWKLVDKXJHVSLNHDQGWKHQDGURSRII\RXKDYHWRDVN <RXPDGHLWVLPSOHDQGHDV\WRXQGHUVWDQG
\RXUVHOI³ZK\GLGWKLVKDSSHQ"´)LJXUHLWRXWDQG\RX¶OOKDYHWKHUHFLSH
IRUWXUQLQJWKDWVSLNHLQWRDSODWHDXRUEHWWHU\HWWXUQLQJWKDWVSLNH
LQWRDPRXQWDLQ <RXPDGHPHEHOLHYHWKDW,QHHGHGWKLVSURGXFW
,QP\SDUWLFXODUFDVHWKHVSLNHKDSSHQHGEHFDXVHZHVXEPLWWHGPRUH <RXGLGQ¶WSXVKWKHSURGXFWDQGHYHQVKRZHGXVKRZWRJHWWKH
DSSVLQDVLQJOHPRQWKWKDQHYHUEHIRUH:HWKHQVWRSSHGVXEPLWWLQJ VDPHLQIRZLWKRXWLW
DSSVDQGZHGURSSHGDQGOHYHOHGRIIDOEHLWDWDKLJKHULQFRPHOHYHO6R
WKHDQVZHUWRRXUSUREOHPLVWRFRQWLQXHVXEPLWWLQJDSSVRUVXEPLW 7KDWZDVHQRXJKIRUPH
EHWWHUDSSVWKDWHDUQDWOHDVWWKHVDPHDPRXQWRIGRZQORDGV:HSODQWR
GRVRLQ-XO\DQGZHKRSHWREULQJWKHL3KRQHLQFRPHEDFNWRZKDWLW ,I\RXZDQWDUHFLSHIRUQRQDJJUHVVLYHDIILOLDWHPDUNHWLQJRQDEORJWKH
ZDVLQ0D\LIQRWPRUH W\SHRIDIILOLDWHPDUNHWLQJWKDWZLOOKHOS\RXUHWDLQ\RXUUHDGHUVDQG
DFWXDOO\EXLOGPRUHWUXVWZLWKWKHPWKHW\SHRIDIILOLDWHPDUNHWLQJWKDW
<RXPLJKWVD\±³ZHOOEXLOGLQJDSSVLVQ¶WSDVVLYH´7UXHEXWWKDW¶VZK\ GRHVQ¶WPDNH\RXIHHOOLNHDZHDVHOWKHQWKDW¶VLWULJKWWKHUH
ZHPLQLPL]HWKHWLPHZHVSHQGRQLWE\IHHGLQJWKHH[SHUWVRXUDSS
LGHDVDQGJHWWLQJVHYHUDOWKLQJVGRQHDWRQFH (DUQWUXVWE\EHLQJKRQHVWDQGRQO\UHFRPPHQGEHFDXVHWKH
UHFRPPHQGDWLRQZLOOKHOS\RXUDXGLHQFHQRWEHFDXVHLWZLOOKHOS\RX
/DVWO\,¶GOLNHWRWDONDERXW0DUNHW6DPXUDLP\IDYRULWH6(2DQG
.H\ZRUGWRRO2YHUWKHODVWPRQWK,GLGDQXPEHURIWKLQJVWKDW $XGLHQFHILUVW\RXVHFRQGDQG\RXZLOOVHHWKHUHZDUGV
LQYROYHGWKH0DUNHW6DPXUDLSURGXFWZKLFKKHOSHGWRFUHDWHWKLVQHZ
OLQHRILQFRPHIRUPHRQP\EDODQFHVKHHWWKURXJKWKHIRUPRIDQ +HUH¶VWRDSURILWDEOHDQGVDIH-XO\IRUDOORIXV&KHHUV
DIILOLDWHOLQN

±±±±±±±
VXFFHVV
WKHFRQYHUVDWLRQ
7KDQN\RXVRPXFK
0\0RQWKO\5HSRUW±-XQH

-XO\
7RGD\·V7DEEORLG
%86,1(6623325781,7,(6:(%/2*
2IILFLDOV3URPRWH1LFKH
7RXULVP %86,1(6623325781,7,(6:(%/2*
-8/$0
)ORULGD7HVWV,QYHQWRUV¶6DQG
&OHDQLQJ,GHDV
-8/$0
$FFRUGLQJWR7KH%LOOLQJV*D]HWWHVRPHVWDWHRIILFLDOVDUHFRQYLQFHGWKDW
WKHUHDUHULFKHVLQWKHQLFKHVIRUPDQ\RYHUORRNHG:\RPLQJWRXULVW
VSRWVLISURPRWHUVFDQDWWUDFW³UXWQXWV´DQG³FXOWXUHYXOWXUHV´
7KH$VVRFLDWHG3UHVVUHSRUWVWKDW)ORULGDRIILFLDOVDUHVHHNLQJLQYHQWRUV
&XOWXUDOWRXULVPLVQLFKHWRXULVPEXWWKH\ZLOOFRPHLIWKH\ WRVDYHWKHVWDWH¶VSULVWLQHEHDFKHVIURPWKH*XOIRI0H[LFRVSLOO
KDYHVRPHWKLQJWKDWLVSURPRWHGIRUWKHPWRFRPHDQGVHH´
VDLG0LOZDUG6LPSVRQGLUHFWRURI:\RPLQJ¶V'HSDUWPHQWRI 7KH)ORULGD'HSDUWPHQWRI(QYLURQPHQWDO3URWHFWLRQ
6WDWH3DUNVDQG&XOWXUDO5HVRXUFHV RUJDQL]HGDGHPRQVWUDWLRQE\86DQG&DQDGLDQ
LQYHQWRUVWRILQGWKHEHVWPHWKRGVWRFOHDQWDURIIDQRLO
6LPSVRQDQGGLUHFWRUVRIWKH:\RPLQJ&XOWXUDO7UXVW)XQG IRXOHGVHFWLRQRI3HQVDFROD%HDFK(LJKWRWKHUVZHUHWHVWHG
GLVFXVVHGZD\VWRSURPRWHWKHVWDWH¶VOHVVHUNQRZQKLVWRULFDO VHSDUDWHO\
DQGFXOWXUDODWWUDFWLRQVODVWPRQWKGXULQJDJUDQWHYDOXDWLRQ
PHHWLQJDW:RUODQG¶VQHZO\FRPSOHWHG:DVKDNLH0XVHXP (DFKLQYHQWRUZDVDVVLJQHGDSORWRIEHDFK
DQG&XOWXUDO&HQWHU
$PRQJWKHLGHDVZHUHSHDWPRVVSRO\PHUVDQGDILEURXV
³:HGRQ¶WNQRZWKHYDOXHRIZKDWZHKDYHLQRXURZQ FRWWRQWKDWZRXOGEODQNHWWKHEHDFKDQGDGKHUHWRWKHWDU
EDFN\DUGVDQGZHGRQ¶WWHQGWRVWHSEDFNDQGVHHLWIURPWKH ZKHQUROOHGXS
H\HVRIIRONVZKRKDYHQHYHUEHHQZHVWEHIRUH,WWDNHVDPRUH
SURDFWLYHYLVLRQLQSURPRWLQJWKRVHWKLQJV´KHVDLG 'DUU\O%RXGUHDXRIWKHHQYLURQPHQWDOGHSDUWPHQWVD\VWKH
VWDWHLVQ¶WORRNLQJIRURQHLGHDLWLVORRNLQJIRUDORWWKDWFDQ
7KDWPLJKWLQFOXGHKLVWRU\EXIIVZKRYLVLWROGEDWWOHILHOGV EHXVHGLQGLIIHUHQWVLWXDWLRQV
³FXOWXUHYXOWXUHV´ZKRVHHNRXWUHJLRQDOIHVWLYDOVDQG
FHOHEUDWLRQVRU³UXWQXWV´ZKRUHWUDFHKLVWRULFWUDLOV 3KRWRE\HDUWKUHKDE
3KRWRE\ODNHGLVWULFWJRY

817(03/$7(5
'$01,:,6+,¶'7+28*+72)7+$7 2SHQ7KUHDG:KDW,V<RXU
0RVHV7KH:RUOG¶V)LUVW 3HUVRQDO,QGHSHQGHQFH"
-8/$0
0DQDJHPHQW&RQVXOWDQW
-8/$0
,ORYHWKLVSRVWIURP6WHYH:RRGUXII*UHDWDGYLFHIRUDOO&(2V
0RVHVZDVWKHOHDGHU$QGHYHU\RQHFDPHWRKLPZLWKWKHLU
SUREOHPVWKHLUGLVSXWHVWKHLUQHHGV
)RUWXQDWHO\DPDQQDPHG-HWKURFDPHDORQJ-HWKURZDV
0RVHV¶IDWKHULQODZEXWPRUHWKDQWKDWKHZDVDZLVHDQG
VHQVLEOHIHOORZ$JLYHURIJRRGDGYLFH$OHDGHUVKLSDQG
PDQDJHPHQWFRQVXOWDQW
-HWKURQRWLFHGWKDW0RVHVZDVDEVROXWHO\ZHDULQJKLPVHOI
GRZQWRVKUHGVE\VLWWLQJLQMXGJPHQWRYHUWKHHQWLUHQDWLRQ
GLVSHQVLQJLQVWUXFWLRQDQGVHWWOLQJGLIILFXOWLHV0RUQLQJ
QRRQDQGQLJKW±³0RVHVZKDWDERXW$DURQ¶VVRQ¶VKDLU
OHQJWK"´³0RVHVKHWRRNRQHRIP\VKHHS´³0RVHVZKDW )RUXVLQWKHVWDWHV-XO\WKKDVFRPHDQGJRQH6RPHIRONVKDGWKHGD\
VKRXOGEHWKHGRZU\IRUDRQHH\HGZLIH"´$QGSHUKDSV RIIRQ0RQGD\ZKLOHRWKHUVWUHDWHGLWOLNHMXVWDQRWKHU0RQGD\
³+RZGR,FKDQJHWKHVHWWLQJVRQP\)DFHERRNSDJHWR 5HJDUGOHVVPRVWRIXVDUHJHWWLQJEDFNLQWRWKHJURRYHRIHYHU\GD\OLIH
EORFNWKRVHSHVN\(J\SWLDQV"´ 1RZZHKHUHDW8QWHPSODWHUSURPRWHDQLQGHSHQGHQWOLIHVW\OHRQHWKDW
GRHVQ¶WUHO\RQWKHUXOHVDQGQRUPVRIVRFLHW\6RRQWKLVKDQJRYHU
1RZRQGHU-HWKURVDLGDVKHZDWFKHGWKLVH[KDXVWLQJSDUDGH 7XHVGD\ZHDVN\RXRQHVLPSOHTXHVWLRQ
³:KDW\RXDUHGRLQJLVQRWJRRG<RXDQGWKHVHSHRSOHZKR
FRPHWR\RXZLOORQO\ZHDU\RXUVHOYHVRXW7KHZRUNLVWRR :KDWLV\RXULGHDRISHUVRQDOLQGHSHQGHQFH"
KHDY\IRU\RX\RXFDQQRWKDQGOHLWDORQH´
6R\RX¶OOVHHDV\RXUHDGWKHSDVVDJHWKDW-HWKURJDYH0RVHV
YHU\ZLVHDGYLFHDERXWFUHDWLQJDQLQQHUFLUFOHRIWUXVWHG
SHRSOHGHOHJDWLQJUHVSRQVLELOLW\DQGIRFXVLQJRQWKHELJ
VWXII+HVDYHG0RVHV¶EDF«ZHOOODPEFKRSVDQGKDGD 6(7+¶6%/2*
VLJQLILFDQWLPSDFWRQWKHOLIHRIWKHQDWLRQIRUPDQ\\HDUVWR
FRPH %HWWLQJRQVPDUWHURUEHWWLQJ
5HDG6WHYH¶VIXOOSRVWELJWKUHHOHVVRQVKHUH RQGXPEHU
-8/$0
6KDUH 0DUNHWHUVIDOOLQWRRQHRIWZRFDWHJRULHV
$IHZEHQHILWZKHQWKH\PDNHWKHLUFXVWRPHUVVPDUWHU7KHPRUHWKH
SHRSOHWKH\VHOOWRNQRZWKHPRUHLQIRUPHGLQTXLVLWLYHIUHHWKLQNLQJ
DQGDOHUWWKH\DUHWKHEHWWHUWKH\GR
$QGPRVWEHQHILWZKHQWKH\ZRUNWRPDNHWKHLUFXVWRPHUVGXPEHU7KH
OHVVWKH\NQRZDERXWRSWLRQVWKHHDVLHUWKH\DUHWRPDQLSXODWHWKHPRUH
KHOSOHVVWKH\DUHWKHEHWWHUWKH\GR
7LP2¶5HLOO\GRHVQ¶WVHOOERRNV+HVHOOVVPDUWV7KHVPDUWHUWKHZRUOG
JHWVWKHEHWWHUKHGRHV

7KHYDVWPDMRULW\RIPDUNHWHUVWKRXJKWDNHWKHRSSRVLWHWDFN$VNWKHP %86,1(6623325781,7,(6:(%/2*
IRUDGYLFHDERXWWKHLUFRPSHWLWRUVWKH\WXUQDZD\DQGVD\³,UHDOO\
ZRXOGQ´WNQRZ´$VNWKHPIRUGHWDLOVDERXWWKHLUVXSSOLHUVDQGWKH\ $&RRO/HVVRQ2Q&DVK)ORZ
GRQ¶WZDQWWRWHOO\RX$VNWKHPWRVKRZ\RXDUHFLSHIRUKRZWRPDNH -8/30
ZKDWWKH\PDNHRQ\RXURZQDQG³LW¶VDWUDGHVHFUHW´7KHLUSHUIHFW
FXVWRPHULVVRPHRQHLQDKXUU\ZLWKSOHQW\RIPRQH\DQGQRWDORWRI
NQRZOHGJHDERXWWKHLURSWLRQV
<RX¶YHDOUHDG\JXHVVHGWKHSXQFKOLQH²LIMXVWRQHSOD\HUHQWHUVWKHILHOG
DQGZRUNVWRPDNHSHRSOHVPDUWHUWKHFRPSHWLWLRQKDVDKDUGWLPH
UHVSRQGLQJZLWKDGXPEQHVVRIIHQVLYH7KH\FDQREIXVFDWHDQGUXQ
FRQIXVLQJDGVEXWVRRQHURUODWHUWKHLQHYLWDELOLW\RILQIRUPDWLRQ
VSUHDGLQJZRUNVLQIDYRURIWKRVHWKDWEHWRQLW
:KHQ0LN%XVKLQVNLFRXOGQ¶WTXLWHILQGDVXPPHUMREWKDWZRXOGEH
IOH[LEOHHQRXJKIRUKLVQHHGVKHFUHDWHGRQHUHSRUWV6WDU7ULEXQHFRP
'$01,:,6+,¶'7+28*+72)7+$7
$ZRUGRIPRXWKPDVWHUDW 6RKHWRRNDQLQWHUHVWIUHHORDQIURPDQXQFOHERXJKWDXVHG
PLQLYDQDQGVRPHIUHH]HUVVHWXSDQRUGHUZLWKDQLFHFUHDP
ZRUN6SUHDGLQJZRUGRIPRXWK GLVWULEXWRULQ0LQQHDSROLVDQGVWDUWHG0LN0DUW,FH&UHDP
6WDUWXSFRVWV"$ERXW
$QGWRPDWRHV
/DVW\HDUKLVILUVWLQWKHEXVLQHVVKHPDGHHQRXJKWRSD\IRU
-8/30
WKHPLQLYDQKHFRQYHUWHGLQWRKLVILUVW0LNPRELOH$IWHU
EX\LQJDQRWKHUYDQDQGLQYHVWLQJLQPRUHIUHH]HUVDQG
2XU:RUGRI0RXWK6XSHUJHQLXVFRQIHUHQFHLVVRJRRGWKDWSDVW
HTXLSPHQW%XVKLQVNLH[SHFWVWKHEXVLQHVVZLOOEHLQWKH
SDUWLFLSDQWVDUHGRLQJWKHLURZQFDPSDLJQVWRSURPRWHWKHHYHQW
EODFNEHIRUHVXPPHULVRYHU+HZRXOGQ¶WVKDUHUHYHQXH³EXW
,ZLOOVD\WKDWLI\RXUXQDWUXFNFRQVLVWHQWO\DQGZLVHO\WKHQ
:DWFK&UDLJ)O\QQRI:LQGVRU21(²DZRUGRIPRXWKPDUNHWLQJ
\RXFRXOGH[SHFWLQVDOHV´
PDVWHU²VKRZV\RXKRZLW¶VGRQH$QDPD]LQJO\FOHYHUFDPSDLJQ
+HVSHQGVKRXUVLQWKHWUXFNDQGDQRWKHURUVRKRXUV
&RPHPHHW&UDLJDQGOHDUQIURPLQFUHGLEO\FOHYHUSHRSOH
EHKLQGWKHVFHQHVZHHNO\
2XUSURPLVH,QVSLULQJDGYLFH\RXFDQDFWXDOO\XVHWRJHWSHRSOHWDONLQJ
$W%XVKLQVNLDOUHDG\KDVH[SHULHQFHLQVDOHV$VLGHIURP
DERXW\RX7KLVLVDSUDFWLFDO\RXFDQGRLWEORZ\RXUPLQGZLWK
WKHW\SLFDOOHPRQDGHVWDQGKHVHWXSRQKLVGULYHZD\LQWKH
UHVXOWVNLQGRIGD\)LQGRXWKRZ
VXEXUEV0LNDOVRXVHGWRVHOOLWHPVDWERDUGLQJVFKRRO³WR
PDNHDQH[WUDFRXSOHGROODUV´3LQJSRQJSDGGOHVZLWKD
PDUNXSFDQG\PLQLKRFNH\VWLFNV2QHRIKLVFRDFKHV
FRLQHGWKHQDPH³0LN0DUWÍRUKLVIOHGJOLQJEXVLQHVV
3KRWRE\&KDUORWWH6SHDNV^&KDUORWWH0RUUDOO`
6KDUH

%86,1(6623325781,7,(6:(%/2* FRORUHGWLQFHLOLQJWLOHVDUWRQWKHZDOOVDQGFXVK\VRIDV²DW
QRH[WUDFRVW6KHHYHQZLOOWKURZLQVQDFNVDQGGULQNVIRUXS
7KH0XOWL'LUHFW6HOOLQJ3DUW\ WRSHRSOH
-8/30
³,W¶VDOORSHQKRXVHVW\OH3HRSOHFDQFRPHDQ\WLPHGXULQJ
WKHSDUW\PLQJOHORRNDURXQGKDYHVQDFNV´5RQDQVDLG
³3HRSOHGRQ¶WKDYHWRVKRZXSULJKWDWSPWROLVWHQWRPH
WDON´
3KRWRE\-XOLDQD&RXWLQKR
%86,1(6623325781,7,(6:(%/2*
0OLYHFRP UG*HQHUDWLRQ(QWUHSUHQHXU
-8/30
-XOLH5RQDQNQRZVKRZWRPDNHWKHEHVWRXWRIDQ\VLWXDWLRQ
,Q-DQXDU\WKH\HDUROG6DJLQDZUHVLGHQWZDVODLG
RIIIURPKHUMREDVDKHDULQJVSHFLDOLVW6KHZDVVL[PRQWKV
SUHJQDQWZLWKKHUWKLUGFKLOG
%XW5RQDQZKRDOUHDG\ZDVGDEEOLQJLQLQGHSHQGHQWVDOHV
FRQVXOWLQJDQGKRPHSURGXFWSDUW\KRVWLQJWXUQHGZKDW
FRXOGKDYHEHHQDOHVVWKDQLGHDOVLWXDWLRQLQWRDIXOOIOHGJHG
EXVLQHVVYHQWXUHDQGDQRSSRUWXQLW\WRVSHQGPRUHWLPHZLWK ,I\RXUJUDQGSDUHQWVRZQHGDSRSXODUFORWKLQJOLQHDQG\RXUGDGZDVWKH
KHUKXVEDQGDQGFKLOGUHQ IRXQGHURIDFRPPHUFLDOEDNHU\ZKDWW\SHRIEXVLQHVVZRXOG\RXEHLQ"
7KDWLVH[DFWO\ZKDW7KH2UDQJH&RXQW\5HJLVWHUDVNHG5REHUW*UD\,¶OO
³,JDYHP\VHOIXQWLO-DQ´5RQDQVDLG³,WROGP\VHOIµ,I, JLYH\RXDKLQWLWKDVQRWKLQJWRGRZLWKZKDWWKH\¶YHGRQH
GRQ¶WKDYHDMREE\WKHQWKHQ,¶OOMXVWKDYHWRPDNHWKLV
ZRUN¶´ >7@KHDQVZHULVDQ,QWHUQHWHTXLSPHQWUHQWDOSRUWDOFDOOHG
5HQWDO+DZNLQ1HZSRUW%HDFK6WLOOLQLWVHDUO\VWDJHV
6RZKHQ-DQUROOHGDURXQGDQGVKHZDVVWLOOZLWKRXWDMRE 5HQWDO+DZNOLVWVW\SHVRIWKHPRVWFRPPRQO\UHQWHG
5RQDQIRUJHGDKHDGZLWKRSHQLQJ0D[LPXP&RQVXOWLQJD HTXLSPHQWZLWKWKHHPSKDVLVRQFRQVWUXFWLRQIURPIORRU
PL[RIDWKRPHSURGXFWSDUW\KRVWLQJLQRIILFHRUGHULQJDQG SROLVKHUVWRZDWWJHQHUDWRUVRIIHUHGE\UHQWDO
RQVLWHGHPRQVWUDWLRQV FRPSDQLHVLQVWDWHV7KHJRDOLVQDWLRQZLGHUHDFKDQG
DQ\WKLQJWKDWFDQEHUHQWHG
1DPHGDIWHUDQGLQVSLUHGLQSDUWE\KHUVRQ0D[ZKRZLOO
FHOHEUDWHKLVILUVWELUWKGD\:HGQHVGD\0D[LPXP&RQVXOWLQJ *UDQGSDUHQWV0DULHDQG5REHUW*UD\VWDUWHG6W-RKQ.QLWV
XQGRHVWKHLGHDRIDRQHWULFNSRQ\KRPHSURGXFWSDUW\E\ GHVLJQHUZRPHQ¶VFORWKLQJDQGDFFHVVRULHVLQ,UYLQH'DG
SURYLGLQJKRVWHVVHVWKHRSWLRQVRIVHYHQEUDQGV²$YRQ 0LFKDHO*UD\IRXQGHG6ZHHW/LIH(QWHUSULVHVLQ6DQWD$QD
0LFKH%DJ6LOSDGD-HZHOU\7XSSHUZDUH,QWLPDWH
([SUHVVLRQV7DVWHIXOO\6LPSOHDQG3DUW\OLWH *UDQGSDUHQWV0DULHDQG5REHUW*UD\VWDUWHG6W-RKQ.QLWV
GHVLJQHUZRPHQ¶VFORWKLQJDQGDFFHVVRULHVLQ,UYLQH'DG
³6RPHRQHKDVD7XSSHUZDUHSDUW\RUD3DUW\OLWHSDUW\DQG 0LFKDHO*UD\IRXQGHG6ZHHW/LIH(QWHUSULVHVLQ6DQWD$QD
\RXJREHFDXVHWKH\¶UH\RXUIULHQGEXWPD\EH\RXGRQ¶WOLNH
7XSSHUZDUHRUFDQGOHV´VKHVDLG³$ORWRIKRVWHVVHVZDQWWR *UD\FRQVXOWHGZLWKKLVGDGDERXWWKHLGHDZURWHDEXVLQHVV
GRPXOWLEUDQGSDUWLHVEHFDXVHZKHQSHRSOHDUHRIIHUHGPRUH SODQDQGVLQFHVWDUWLQJ5HQWDO+DZNKDVUHLQYHQWHGDQG
WKDQRQHRSWLRQWKHQHYHU\ERG\¶VKDSS\´ WZHDNHGWKHFRQFHSWVHYHUDOWLPHVLQUHVSRQVHWRUHQWDO
FRPSDQLHVDQGVHDUFKLQJFXVWRPHUV
3DUWLHVFDQEHKHOGLQDKRVW¶VKRPHRULQ5RQDQ¶VRIILFH²D
KLGGHQWUHDVXUHGRZQWRZQZLWKH[SRVHGEULFNFRSSHU

6RPHWLPHVLW¶VDILQHEDODQFHEHWZHHQWKHWZR7KHVHUYLFHLV
IUHHIRUUHQWHUVDQGUHQWDOFRPSDQLHVSD\DIODWIHHQRWD
FRPPLVVLRQ
³5HQWDOFRPSDQLHVZDQWWRFDSWXUHQHZFXVWRPHUVEXWGRQ¶W
ZDQWWRFRPHDFURVVDVGLVFRXQWLQJSULFHV&XVWRPHUVFDQ
KDJJOHEXWFRPSDQLHVZRQ¶WDGYHUWLVHWKDW´*UD\VD\V
2Q5HQWDO+DZNFXVWRPHUVFDQVRUWE\W\SHRIHTXLSPHQW
QHHGHGDQGGLVWDQFHIURPWKHZRUNVLWHEXWQRWE\SULFH
7KH\FDQDOVRVHHRQHWRILYHVWDUUDWLQJVDQGUHDGUHYLHZV
DERXWFRPSDQLHV¶UHOLDELOLW\DQGVHUYLFH
/RJRIURP5HQWDO+DZN

-XO\
7RGD\·V7DEEORLG
'$01,:,6+,¶'7+28*+72)7+$7 :KDWFDQ\RXGRWRGD\WKDWZLOOPDNHVRPHRQHZDQWWRWHOODIULHQG
DERXW\RX"
$GYHUWLVLQJLVWKHFRVWRIEHLQJ
3XWWKLVRQWKHZDOO
ERULQJ$QG\6HUQRYLW]WHOOVWKH
,¶YHEHHQSUHDFKLQJWKLVLPSRUWDQWPHVVDJHVLQFH$QGQRZWKH
KDUGWUXWK+XJK0DF/HRG DPD]LQJ+XJK0DF/HRGKDVFUHDWHGRQHRIKLVIDQWDVWLFRULJLQDOZRUNV
VR\RXFDQKDQJLWRQ\RXUZDOODQGQHYHUIRUJHW
PDNHVLWSUHWW\
-8/$0
*HWDIDQF\ILQHDUWSULQWE\YLVLWLQJ+XJK¶VDUWJDOOHU\6KRZRII\RXU
:20SULGHE\JHWWLQJDVKLUWKDWRUSRVWHUDWRXU:20VWRUH
$GYHUWLVLQJLVWKHFRVWRIEHLQJERULQJ
0HHW+XJK
,I\RXUFXVWRPHUVZRQ¶WWDONDERXW\RXUVWXII\RXKDYHWRSD\
QHZVSDSHUVDQG79VKRZVWRGRLWIRU\RX +XJK¶VUHPDUNDEOHFXVWRPFUHDWLRQLVWKHUDOO\IODJIRURXU:RUGRI
0RXWK6XSHUJHQLXVFRQIHUHQFH0HHW+XJKDQGRWKHUDPD]LQJ
%XWZKHQSHRSOHWUXVW\RXWKH\DUHZLOOLQJWRSXWWKHLUZRUGVRQWKHOLQH PDUNHWHUVOLYHRQ-XO\LQ1HZ<RUN
IRU\RX3OHDVHWKHPLQVSLUHWKHPDQGWKH\¶OOEULQJWKHLUIULHQGVWR\RX
2XUSURPLVH,QVSLULQJDGYLFH\RXFDQDFWXDOO\XVHWRJHWSHRSOHWDONLQJ
:KDWDUH\RXURWKHURSWLRQV"%RUHWKHP²DQGEHIRUFHGWRVSHQG DERXW\RX7KLVLVDSUDFWLFDO\RXFDQGRLWEORZ\RXUPLQGZLWK
PLOOLRQVLQDGYHUWLVLQJWRJHWWKHPLQWHUHVWHG$QQR\WKHP²DQGZDWFK UHVXOWVNLQGRIGD\)LQGRXWKRZ
\RXUFXVWRPHUVZDONDZD\WDNLQJWKHLUIULHQGVZLWKWKHP
:RUGRIPRXWKPDUNHWLQJLVPRUHWKDQMXVWPDUNHWLQJ
,W¶VDVLPSOHQHZSKLORVRSK\(DUQWKHUHVSHFWDQGUHFRPPHQGDWLRQRI
\RXUFXVWRPHUVDQGWKH\ZLOOGRWKHUHVW7UHDWSHRSOHZHOODQGWKH\
ZLOOGR\RXUPDUNHWLQJIRU\RXIRUIUHH
:RUGRIPRXWKPDUNHWLQJLVPRUHWKDQMXVWPDUNHWLQJ 6KDUH
,W¶VDERXWPDNLQJ\RXUVWXIIDQG\RXUFRPSDQ\ZRUWKWDONLQJDERXW

,QWKHQH[WYLGHRVZH¶OOJRWKURXJKJRDOVHWWLQJYLVLRQWDONLQJDQG
PHGLWDWLRQWRKHOSJHW\RXFRQVLVWHQWO\LQWKHVWDWHRI)ORZ

*RWKURXJKWKHFKDUWDQGVHHDWZKLFKVWDJH\RX¶UHDWDQGOHDYHD
FRPPHQWEHORZ
817(03/$7(5 7KDQNV
7KH$UWRI%HLQJLQWKH)ORZ 7KXPEQDLO3KRWR$QWKRQ\0DWWR[
-8/$0
$ORWKDVEHHQVDLGDERXWEHLQJLQWKHµIORZ¶EXWZKDWH[DFWO\LVEHLQJLQ
WKHµIORZ¶"+RZGRHVLWEHQHILW\RXLQWKHORQJUXQ",¶YHFUHDWHGDVKRUW
YLGHRVHULHVH[SODLQLQJWKLVDQGDOVRKRZ\RXFDQFRQVLVWHQWO\EHLQWKH
VWDWHRIIORZ&KHFNLWRXW 6(7+¶6%/2*
,QFDVH\RXFDQ¶WYLHZWKHYLGHRKHUHLVDVXPPDU\RIZKDW,VSRNH /RZHVWHHPDQGWKHIDFWRU\
DERXW -8/$0
:KHQ\RXDUHLQWKHVWDWHRIIORZ\RXDUHLQDVWDWHRIRSWLPDOFKDOOHQJH ,I\RXZDQWWRKLUHSHRSOHWRGRDMREWREHFRJVLQWKHV\VWHPDQGWRGR
RSWLPDOFUHDWLYLW\LQDQDOSKDVWDWH\RXDUHGRLQJ\RXUEHVWZRUN ZKDWWKH\¶UHWROG\RXPLJKWZDQWWRIRFXVRQSHRSOHZKRGRQ¶WWKLQN
V\QFKURQLFLW\KDSSHQVFRLQFLGHQFHVRFFXUWKLQJVMXVWIDOOLQWRSODFH YHU\KLJKO\RIWKHPVHOYHV
ZLWKRXW\RXKDYLQJWRSXVKIRULW±LQRWKHUZRUGVWKLQJVMXVWIORZRXWRI
\RX±KHQFHWKHWHUPµIORZ¶7KLVLVWKHLGHDOVWDWHWREHLQIRUUHDVRQV 3HRSOHZLWKORZVHOIHVWHHPPLJKWEHPRUHKDSS\WREHERVVHGDURXQG
WLPHGDEXVHGPLVXVHGDQGPLFURPDQDJHGQR"
<RX¶UHQRWSXVKLQJ\HDUQLQJVWUHVVLQJDQGKXVWOLQJIRU\RXUJRDOV
,QVWHDGE\SXWWLQJ\RXUVHOILQWKHSDWKRIIORZ\RXKDYHQRZ $QGWKHFRQYHUVHLVWUXHDVZHOO,I\RXZDQWWRUDLVH\RXUJDPHDQGEXLOG
DOLJQHG\RXUVHOIVXFKWKDWWKLQJVFRPHWR\RX DQRUJDQL]DWLRQILOOHGZLWKSHRSOHZKRZLOOFKDQJHHYHU\WKLQJWKHILUVW
WKLQJWRORRNIRULVVRPHRQHZKRKDVQ¶WEHHQEUDLQZDVKHGLQWREHOLHYLQJ
<RXDUHZRUNLQJFUHDWLQJEHLQJDW\RXURSWLPDOOHYHO6RQRW WKDWWKH\¶UHQRWFDSDEOHRIJUHDWZRUN
RQO\GRWKLQJVKDSSHQIRU\RXHDVLO\EXW\RX¶UHDOVRGRLQJ\RXU
EHVWZRUN,QWKLVYLGHRZHILUVWVWDUWE\GHILQLQJZKHUH\RXVWDQG $KDUULHGWHDFKHUPLJKWILQGLWHDVLHUWRWHDFKDFODVVWRREH\ILUVWDQG
LQWKHIORZFKDUWFUHDWHGE\9LVKHQ/DNKLDQLRI0LQG9DOOH\FRP WKLQNVHFRQGEXWLVWKDWVRUWRIEHKDYLRUYDOXDEOHRUVFDUFHQRZ"
7KHUHDUHVWDJHVWKDW\RXFRXOGEHDW ,QGXVWULHVWKDWQHHGWRVXEMXJDWHZRPHQRUGHPRQVWUDWHSRZHURYHURQH
FODVVRISHUVRQRUDQRWKHUDUHDOZD\VRQWKHORRNRXWIRUSHRSOHWKH\FDQ
1HJDWLYH6SLUDO±:KHUH\RXDUHQRWKDSS\QRZQRUGR\RXKDYH GLPLQLVK2XUWDVNWKHQLVWRILQGSHRSOHZHFDQHQFRXUDJHDQGQXUWXUH
DYLVLRQIRUWKHIXWXUH<RXGRQRWZDQWWREHDWWKLVVWDJH XQWLOWKH\¶UHDVLPSDWLHQWZLWKDYHUDJHDVZHDUH
&XUUHQW5HDOLW\7UDS±:KHUH\RXDUHKDSS\QRZEXWKDYHQR 7KHSDUDGR[LVWKDWWKHYHU\SHRSOHWKDWDUHWKHHDVLHVWWRFDWHJRUL]HWR
YLVLRQVIRUWKHIXWXUH$ORWRISHRSOHDUHDWWKLVVWDJH7KHUH¶V FRPPDQGDQGWRGRPLQDWHDUHWKHODVWSHRSOHZHZDQWWRZRUNZLWK
QRWKLQJZURQJZLWKWKLVVWDJHEXW\RX¶UHHVVHQWLDOO\IXQFWLRQLQJDW
DPHGLRFUHVWDWH
$Q[LHW\6WUHVV±0RVWSHRSOHDUHDWWKLVVWDJHZKHUHWKH\DUH
QRWKDSS\QRZEXWKDYHELJYLVLRQVIRUWKHIXWXUH$ORWRI
HQWUHSUHQHXUVDUHDWWKLVVWDJH$JDLQQRWKLQJZURQJZLWKEHLQJDW
WKLVVWDJHEXWLW¶VPXFKEHWWHUWREHLQ
)ORZ±+DSS\QRZDQGKDYHYLVLRQVRIWKHIXWXUH7KLVLVWKHVWDJH
ZH¶UHDLPLQJWREHDW
6REDVLFDOO\LQRUGHUWREHLQIORZ\RX¶OOKDYHWRRYHUFRPHWKH3DUDGR[
RI,QWHQWLRQIURPWKHERRN4XDQWXP6XFFHVVE\6DQGUD$QQH7D\ORU
ZKLFKLVKDYLQJJRDOVEXWVWLOOEHLQJKDSS\QRZ

'$01,:,6+,¶'7+28*+72)7+$7 %86,1(6623325781,7,(6:(%/2*
:KDW¶VZLWKWKHJLDQWPDLOER[" &3$V+HOS(QWUHSUHQHXUV
:K\DP,ZHDULQJWKDWKDW" 6XFFHHG
-8/30 -8/30
/HDUQVSHFLILFXVHIXOVWUDWHJLHVWRJHWSHRSOHWDONLQJDERXW\RXDW:RUG
RI0RXWK6XSHUJHQLXV-XO\LQ1HZ<RUN
7KLVLVWKH³+RZWREH*UHDWDW:RUGRI0RXWK0DUNHWLQJ´FRQIHUHQFH
+RZWR&ODVVHV6LPSOHKDQGVRQOHVVRQVRQHVVHQWLDOZRUG
RIPRXWKVNLOOV
&DVH6WXGLHV5HDOZRUOGVXFFHVVVWRULHVIURP'HOO.UDIWDQG
PRUH
%ULOOLDQW$XWKRUV-RVK%HUQRII%ULDQ6ROLV+XJK0DF/HRG
'RXJODV$WNLQ-HDQQH%OLVVDQG3DXO*LOOLQ $FFRUGLQJWR6XLWHWKHVHUYLFHVRI&HUWLILHG3XEOLF$FFRXQWDQWV
&3$VRIWHQH[WHQGEH\RQGKHOSLQJFOLHQWVILOHWKHLUWD[UHWXUQV7KH\
&RPSHOOLQJ.H\QRWHV=DSSRV&(27RQ\+VLHKDQG:RUGRI DUHRIWHQIRXQGEHKLQGWKHIURQWOLQHVKHOSLQJVWDUWXSEXVLQHVVRZQHUV
0RXWKJXUX$QG\6HUQRYLW] UHDOL]HWKHLUGUHDPVQRPDWWHUZKDWWKH\PD\EH
%RUURZLQJRQKLVRZQH[SHULHQFHLQRSHQLQJKLVRIILFHLQWKH
PLGV$GRQX³'RQ´,GDKRVDSUHVLGHQWRI6\PSKRQ\
)LQDQFLDO6HUYLFHVLQ.DODPD]RR0LFKLJDQVD\VKHGRHVQ¶W
VHHLWDVSDUWRIKLVMREDVD&3$WRVHFRQGJXHVVWKH
HQWUHSUHQHXUVFRPLQJWRKLPIRUKHOS
³,W¶VQRWXSWRPHWRMXGJHZKHWKHUDFOLHQWKDVDJRRGLGHDRU
6KDUH QRWQRULVLWXSWRPHWRGLVFRXUDJHRUHQFRXUDJHKLPRUKHU
HLWKHUZD\0\MRELVWRJLYHWKHPWKHEHVWDGYLFHSRVVLEOH´
KHVD\VDGGLQJ³QRWDQ\RQHSHUVRQLVWKHZKROHIRUHVW(YHQ
WRGD\LI,KDYHVRPHWKLQJ,¶PWKLQNLQJDERXWGRLQJ,FRQVXOW
DIULHQGZLWKNQRZOHGJHLQWKDWSDUWLFXODUDUHD´
$FFRUGLQJWR,GDKRVDWKHPRVWYDOXDEOHVHUYLFHKLVRIILFH
SURYLGHVIRUVWDUWXSVLQDGGLWLRQWRKHOSLQJWKHPVHWXSDQG
NHHSDFFXUDWHDFFRXQWLQJUHFRUGVLVDGYLVLQJWKHPDJDLQVW
SLWIDOOVVXFKDVKLULQJWRRPDQ\HPSOR\HHV³EHFDXVHRIWKH
FRQVHTXHQFHVRIKDYLQJWRPHHWH[FHVVLYHSD\UROOWD[HV´
:KHQLWFRPHVWRWKHVXEMHFWRIWD[HV,GDKRVDVDLGKHPD\
DGYLVHFOLHQWVDERXWWKHWD[DGYDQWDJHVRIYDULRXVEXVLQHVV
SUDFWLFHV³EXWMXVWGRQ¶WDVNPHDERXWµORRSKROHV¶´KHVD\V
DGGLQJ³WKDW¶VWKHEHVWZD\WRJHWPHWRVKRZ\RXWRWKHGRRU
,WHOOP\FOLHQWVWKDWLW¶VP\MREWRPDNHWKHPSD\WKHLUIDLU
VKDUH´
3KRWRE\IRUZDUGFRP

%86,1(6623325781,7,(6:(%/2*
7KLUG:RUOG2SSRUWXQLW\ %86,1(6623325781,7,(6:(%/2*
-8/30
2QH&RRO,QYHQWRU2QH&RRO
,QQRYDWRU
-8/30
0DU\2JZDQJXVHGWROLYHLQLQDRQHURRPKRXVHPDGHRIPHWDOLQ
8JDQGD+HUKXVEDQGDSROLFHRIILFHURQO\EURXJKWKRPHDGD\
7KHQ0DU\KHDUGDERXW%HDGIRU/LIH7KDWZDVZKHUHVKHIRXQGWKH
RSSRUWXQLW\WRPDNHHQRXJKPRQH\WRVWDUWKHURZQEXVLQHVVPDNLQJ ,QG\6WDUFRPUHSRUWVWKDW$QGUHZ6KHOWRQZDVMXVW\HDUVROGDMXQLRU
FORWKLQJ)URPWKHUHVKH¶VEHHQDEOHWRH[SDQGRQKHUKRPHDQGFUHDWHD DW:DEDVK&ROOHJHZKHQKHKDGDQLGHDIRUDQHZSURGXFWDEDFNSDFN
VLGHEXVLQHVVDVZHOOUHSRUWV)RUEHV FRROHUWKDWNHHSVGULQNVFROGDQGHDV\WRFDUU\
2JZDQJLVD%HDGIRU/LIHVXFFHVVVWRU\ +HJRWWKHLGHDDIWHUOXJJLQJDQRYHUVL]HGFRROHUWRWKH
,QGLDQDSROLVZLWKDIULHQGZLWKGULQNVVSLOOLQJ
7KHQRQSURILWOLNHPDQ\LQWHUQDWLRQDODLGRUJDQL]DWLRQV HYHU\ZKHUH
XQGHUVWDQGVWKDWRQHRIWKHEHVWZD\VWRDOOHYLDWHSRYHUW\LQ
GHYHORSLQJQDWLRQVLVWRKHOSZRPHQEHFRPHHQWUHSUHQHXUV ³,MXVWILJXUHGWKDWKDGWREHDEHWWHUZD\WRGRLW´KHVDLG
ZKRVHLQFRPHVFDQOLIWWKHHQWLUHIDPLO\¶VVWDQGDUGRIOLYLQJ
%XW%HDGIRU/LIHZKLFKZDVIRXQGHGVL[\HDUVDJRDOVRKDV +HGHVLJQHGDSURWRW\SHIRUPHGDFRPSDQ\IRXQGILQDQFLQJ
OHDUQHGWKDWVRPHZRPHQDUHIDUPRUHDGHSWDWUXQQLQJ DQGDPDQXIDFWXUHU
EXVLQHVVHVWKDQRWKHUVDQGWKDWLWPXVWLGHQWLI\HDUO\RQ
WKRVHPRVWOLNHO\WRVXFFHHGLILWZDQWVWRDFKLHYHJRRG (LJKW\HDUVODWHU6KHOWRQKDVVROGQHDUO\7UDFN3DFN
UHVXOWV7KHJURXSKDVFUHDWHGDQPRQWKHQWUHSUHQHXULDO &RROHUVEDFNSDFNFRROHUVWKDWFDUU\XSWRRXQFH
SURJUDPWKDWWDUJHWVZRPHQZKRDUHDPELWLRXVDQG EHYHUDJHFDQVXVLQJDSODVWLFIUDPHDQLQVXODWHGFRYHUDQGD
LQQRYDWLYHDQGKHOSVWKHPODXQFKSURILWDEOHYHQWXUHV ZDWHUSURRIOLQHU
³,QVWHDGRIMXVWGROLQJRXWPRQH\ZHZDQWWRLGHQWLI\ZRPHQ ,QVLGHWKHFDQVDUHVWDFNHGLQIRXUYHUWLFDOFROXPQVOLNHD
ZKRFDQXVHWKHEHDGPDNLQJVNLOOVZHWHDFKDVDVWHSSLQJ VRGDPDFKLQHNHSWFKLOOHGE\LFHSDFNV
VWRQHWRGRVRPHWKLQJPRUH´VD\V7RUNLQ:DNHILHOGFR
H[HFXWLYHGLUHFWRURI%HDGIRU/LIH /DVW\HDU6KHOWRQUDQJXSPRUHWKDQPLOOLRQLQVDOHV
VHOOLQJWKHFRROHUVWKURXJK.URJHU'LFN¶V6SRUWLQJ*RRGV
%XWWKHLUFKDQFHVRIVXFFHVVGHSHQGRQWKHVDPHWUDLWVDV 8QLWHG3DFNDJH/LTXRUVKLVZHEVLWHDQGDWVSHFLDOHYHQWV
HQWUHSUHQHXUVLQ6LOLFRQ9DOOH\RU6KDQJKDL1DNKRRGDDGGV
QDPHO\³KDYLQJDGUHDPDIRFXVDQGEHLQJH[WUHPHO\KDUG 3KRWRE\,QG\6WDUFRP
ZRUNLQJ´
6FUHHQVKRWIURP%HDGIRU/LIH

'$01,:,6+,¶'7+28*+72)7+$7
%86,1(6623325781,7,(6:(%/2* 7HPSRUDU\3RVW8VHG)RU
0RP¶V2ZQ*RDW6RDS 7KHPH'HWHFWLRQDD
-8/30
HHDIGFGEFG
±EIHDGHDE
EIG
-8/30
7KLVLVDWHPSRUDU\SRVWWKDWZDVQRWGHOHWHG3OHDVHGHOHWHWKLV
6KDQQRQ:LJJLQVKDGDORQJOLVWRIWKLQJVVKH¶GQHYHUGR6KHQHYHU PDQXDOO\DHHHFEHFGFH±EIHDGH
ZDQWHGWRJHWPDUULHGKDYHNLGVRURZQDQLPDOV6R\RXPLJKWEH DEEIG
VXUSULVHGWRILQGWKDWVKHOLYHVRQDIDUPZLWKDKXVEDQGDQGILYH
FKLOGUHQ%HVLGHVUXQQLQJDIDUPVKHDOVRVHOOVYDULRXVJRDWPLONVRDSV
UHSRUWV3HQLQVXOD'DLO\1HZV 6KDUH
7KHLUIDUPLVZKHUH:LJJLQVOHDUQHGWRPDNHJRDW¶VPLON
VRDSLQSDUWEHFDXVHDOOIRXURIKHUGDXJKWHUVKDYHVHQVLWLYH

VNLQ
6KH¶VEXLOWDEXVLQHVVLQZKLFKVKHPDUNHWV*DOORSLQJ*RDWV
VRDSV²IURPURVHPDU\PLQWWREODFNOLFRULFHWROLODFWR %86,1(6623325781,7,(6:(%/2*
SDWFKRXOLVFHQWHG³+DSS\+LSSLH´²WRDGHYRWHGIROORZLQJ
+RZ0XFK6KRXOG<RX3D\
:LJJLQVKDGORQJZDQWHGWRPDNHJRDW¶VPLONVRDSEXWZDV
DSSUHKHQVLYHDERXWZRUNLQJZLWKO\HDQGVRVSHQWD\HDU <RXUVHOI"
VWXG\LQJWKHSURFHVV6KH¶VEHHQPDNLQJVRDSIRUILYH\HDUV -8/30
QRZ
³,ILJXUHGRXWWKHIRUPXOD,OLNHLQWKHILUVWIHZPRQWKV1RZ,
JHWWRSOD\ZLWKFRORUDQGVFHQW´:LJJLQVVDLG³,DVNWKH
NLGVµ:KDWFRORUGRHVWKLVVPHOOOLNH"¶
³,W¶VDFUHDWLYHRXWOHW´VKHVDLGDGGLQJWKDWKHURIIVSULQJ
SURYLGHKHUZLWKJRRGIUHVKLQSXW
3KRWRVIURP*DOORSLQJ*RDWV)DUP
-D\*ROW]DW7KH1HZ<RUN7LPHVKDVKLVDQVZHUWRWKLVTXHVWLRQ
$FWXDOO\WKHUHLVDVLPSOHDQVZHU
,WKLQNEXVLQHVVRZQHUVVKRXOGSD\WKHPVHOYHVZKDWHYHULV
OHIW²ZKDWHYHULVOHIWWKDWLVDIWHUHYHU\RQHDQGHYHU\WKLQJ
HOVHKDVEHHQSDLGDQGDIWHUPRQH\IRUJURZWKDQGSD\LQJ
GRZQGHEWKDVEHHQIDFWRUHGLQ
$PRQJWKHIDFWRUVWKDWVKRXOGQRWEHFRQVLGHUHGZKHQ
GHWHUPLQLQJZKDWDQRZQHUVKRXOGEHSDLGDUHKRZKDUGWKH
RZQHUZRUNVZKDWUHVSRQVLELOLWLHVWKHRZQHUIXOILOOVDWWKH

EXVLQHVVKRZORQJWKHRZQHUKDVEHHQUXQQLQJWKHEXVLQHVV IXQGHGWRGHOLYHUEXVLQHVVDQGSHUVRQDOGHYHORSPHQW
ZKDWRZQHUVRIVLPLODUEXVLQHVVHVPDNHZKDWWKHRZQHU¶V WUDLQLQJSURJUDPVWRWKHPLFURHQWUHSUHQHXU
HPSOR\HHVPDNH²DQGHVSHFLDOO\QRWZKDWVRPHRXWVLGHU
PLJKWFRQVLGHUWREHIDLU :KDWLVPLVVLQJLQP\PLQGLVWKHKHDWRID³JUDVVILUH´
0HGLDDQGJRYHUQPHQWVXSSRUWIRUWKHPLFURHQWUHSUHQHXU
(QWUHSUHQHXUVKLSLVQRWDMRE(PSOR\HHVVKRXOGEHSDLG VKRXOGEHVZHHSLQJDFURVVWKHODQGOLNHDJUDVVILUH
ZKDWWKH\DUHZRUWKGHSHQGLQJRQPDUNHWFRQGLWLRQV
6WDWLVWLFVUHSRUWWKDWRQO\RQHLQILYHSHRSOHILQGDMREDWDMRE
,IDFRPSDQ\GRHVSDUWLFXODUO\ZHOOLWSUREDEO\PDNHVVHQVH IDLU7KLVPHDQVWKDWIRUHYHU\MRERIIHUHGWKHUHDUHIRXU
IRUWKHHPSOR\HHVWRVKDUHWKHEHQHILWWKURXJKVRPHNLQGRI SHRSOHOHIWHPSW\KDQGHGZKRJRKRPHMREOHVVDQG
ERQXVSODQ GHSUHVVHG+RZPDQ\RIWKRVHZKRDUHWXUQHGDZD\PLJKW
TXDOLI\IRUWUDLQLQJDQGIXQGLQJDVDPLFURHQWUHSUHQHXU"7R
%XWLIDFRPSDQ\LVQRWGRLQJZHOOWKHRZQHUPD\HQGXS IDQWKHIODPHVWKHUHVKRXOGEHDRQHVWRSVKRSIRUPLFUR
PDNLQJOHVVWKDQVRPHHPSOR\HHVRUHYHQORVLQJPRQH\ HQWUHSUHQHXUV²OLNHD0$&6KRS²DWHYHU\MREIDLU
7KHUHLVQR³IDLU´ZKHQLWFRPHVWRWKHRZQHU¶VVDODU\MXVW /HW¶VIRFXVRQWKRVHZKRDUHWXUQHGDZD\LQRYHUZKHOPLQJ
IHDUWKDWLWZRQ¶WEHWKHUH<RXPDNHZKDW\RXHDUQ QXPEHUV/HW¶VPHQWRUWKRVHZKRFKRRVHWKHSDWKRIWKH
HQWUHSUHQHXUDQGILQGRXWZKDWWKH\UHDOO\ZDQWWRGRZLWK
3KRWRE\.LQVH\SKRWRIXQLD WKHLUOLIH7KHOLIHRIDPLFURHQWUHSUHQHXULVQRWIRUWKHULVN
DGYHUVH
$UHWKH\UHDG\WRWU\VRPHWKLQJQHZ"$UHWKH\SK\VLFDOO\DQG
PHQWDOO\XSIRUWKHFKDOOHQJHRIUXQQLQJWKHLURZQEXVLQHVV"
,IVROHWWKHP³RSWLQ´WRWKLVSURJUDPDQG³RSWRXW´RIWKH
%86,1(6623325781,7,(6:(%/2* XQHPSOR\PHQWFKHFN7KHUH¶VWKHULVN
)XQGLQJ7KH0LFUR (QUROOWKHPLQDWUDLQLQJSURJUDPWKDWSURYLGHVWKHPZLWK
HVVHQWLDOEXVLQHVVVNLOOVWKHQRIIHUDVSHFLDOUHZDUGDVD
(QWUHSUHQHXU ³JUDGXDWLRQ´SUHVHQW
-8/30
3KRWRE\5X7HPSOH
%86,1(6623325781,7,(6:(%/2*
)DFHERRN)DWLJXH"
-8/$0
:KHQWKLQJVJHWXQVWDEOHLQWKHZRUNIRUFHWKHXQHPSOR\HGWHQGWRORRN
WRZDUGVVHOIHPSOR\PHQWDVDQDOWHUQDWLYH+RZHYHUWKHVZLWFKLVQ¶WIRU
WKHIDLQWRIKHDUW<RXKDYHWRIHHODFHUWDLQGHGLFDWLRQWRZKDW\RXZDQW
WRGREHIRUH\RXFDQVXFFHHGZLWKLW$OH[LD3DUNVIRU7KH+XIILQJWRQ
3RVWUHFHQWO\WRXFKHGRQWKHVXEMHFWZLWKKHURZQLGHDRIZKDWWKH
JRYHUQPHQWVKRXOGGRWRKHOSWKHPJHWODXQFKHG
&XUUHQWO\WKH6PDOO%XVLQHVV$GPLQLVWUDWLRQ¶V6%$KDVVHW

DVLGHDIHZPLOOLRQIRUHQFRXUDJLQJHQWUHSUHQHXUVKLSXQGHU
LWV3URJUDPIRU,QYHVWPHQWLQ0LFURHQWUHSUHQHXUV35,0(
7KLVLVDVWHSLQWKHULJKWGLUHFWLRQ8QGHUWKLVSURJUDP
+DVWKHQRYHOW\RISRNLQJVWDWXVXSGDWHVDQGSKRWRWDJJLQJZRUQRIIIRU
VHOHFWHGQRQSURILWRUJDQL]DWLRQVDFURVVWKHFRXQWU\DUHEHLQJ
WHHQVDQGWKHLUQRWRULRXVO\VKRUWDWWHQWLRQVSDQV"

0DVKDEOHUHSRUWVWKDWDVXUYH\FRQGXFWHGE\RQOLQHJDPLQJVLWH LVVWLOOVXIILFLHQWO\VODFNVRVPDOOEXVLQHVVHVVKRXOGVWLOOEH
5RLZRUOGIRXQGWKDWWHHQDJHUVDUHVKRZLQJVLJQVRI³)DFHERRN)DWLJXH´ KLULQJYLJRURXVO\7KH\DUHKLULQJEXWQRWDVIDVWDVLQWKH
ILUVWTXDUWHU´
7HHQVVWLOOVSHQGDQLPSUHVVLYHSHUFHQWRIWKHLULQWHUQHW
WLPHRQVRFLDOQHWZRUNLQJVLWHVEXWSHUFHQWRIWKRVHZLWKD 3KRWRE\GXFKHVVVD
)DFHERRNDFFRXQWUHSRUWQRORQJHUYLVLWLQJWKHVLWHRUXVLQJLW
OHVV
$PRQJVWWKRVHXQIULHQGLQJ)DFHERRNSHUFHQWKDYHORVW
LQWHUHVWSHUFHQWDUHOHDYLQJEHFDXVHWKHLUSDUHQWVMRLQHG
SHUFHQWVD\WKHVLWHKDV³WRRPDQ\DGXOWVROGHUSHRSOH´ '$01,:,6+,¶'7+28*+72)7+$7
DQGSHUFHQWH[SUHVVHGFRQFHUQVDERXWSULYDF\
0DNH\RXUJXHVWVIHHOZHOFRPH
3KRWRE\ODWLPHVFRP -8/$0
$OLWWOHVLJQWXUQVDUDQGRPYLVLWLQWRDVSHFLDORFFDVLRQ3XWDYLVLWRU¶V
QDPHE\WKHIURQWGRRUDQGWKH\¶OONQRZ\RXFDUH
$QGMXVWPD\EHWKH\¶OOEHLQDEHWWHUPRRGDQG\RX¶OOJHWDEHWWHUUHVXOW
%86,1(6623325781,7,(6:(%/2* IURPWKHPHHWLQJ
6PDOO%L]V$GGHG1HZ 7KHOLWWOHWKLQJVPDWWHU
-REV
-8/$0
0DUNHWZDWFKUHSRUWVWKDWVPDOOEXVLQHVVHPSOR\PHQWJUHZE\
SHUFHQWLQ-XQHHTXDWLQJWRDSHUFHQWDQQXDOJURZWKUDWHDFFRUGLQJ
WRWKHODWHVW,QWXLW,QF6PDOO%XVLQHVV(PSOR\PHQW,QGH[
7KLVWUDQVODWHVWRDSSUR[LPDWHO\QHZMREVLQ-XQHDQG
DUHYLVHGHVWLPDWHRIWRWDOQHZMREVVLQFH2FWREHU
7KHPRQWKO\UHSRUWLVEDVHGRQILJXUHVIURPWKH
FRXQWU\¶VVPDOOHVWEXVLQHVVHVWKDWXVH,QWXLW2QOLQH3D\UROO
³(PSOR\PHQWURVHEXWWKHULVHZDVDWDVORZHUUDWHIRU-XQH
6KDUH
WKDQIRUSUHYLRXVPRQWKV´VDLG'U6XVDQ:RRGZDUGWKH
QDWLRQDOO\UHFRJQL]HGHFRQRPLVWZKRZRUNHGZLWK,QWXLWWR
FUHDWHWKHLQGH[³$WWKLVSRLQWLQDUHFRYHU\WKHODERUPDUNHW

W\SLFDOO\LVRODWHGWRWKHPVHOYHVRUDWLQ\QHWZRUN
(QWHU*R*LYHUV
817(03/$7(5 *R*LYHUVWKLQNDQGEHKDYHLQSUHFLVHO\WKHRSSRVLWHZD\7KHLUIRFXVLV
QRWRQJHWWLQJIRUWKHPVHOYHVEXWJLYLQJWRRWKHUV7KLVPLQGVHWLVGULYHQ
$UH<RXD*R*HWWHURUD*R E\WKHLUEHOLHIWKDWJLYLQJLV³WKHVLPSOHVWPRVWIXOILOOLQJDQGPRVW
HIIHFWLYHSDWKWRVXFFHVVLQEXVLQHVVDQGOLIH´7KH*R*LYHU
*LYHU"
-8/$0 7KH/DZVRI6WUDWRVSKHULF6XFFHVV
7KH*R*LYHULVDOLJKWKHDUWHGWDOHRI-RH¶VMRXUQH\IURPEHLQJD*R
*HWWHUWRD*R*LYHU-RH¶VPHWDPRUSKRVLVLVJXLGHGE\3LQGDUKLVQHZ
XEHUZHDOWK\PHQWRUDQGVHYHUDORI3LQGDU¶VFORVHVWIULHQGV7KHHQWLUH
MRXUQH\LVJURXQGHGLQ3LQGDU¶V%LJ6HFUHW±WKH/DZVRI6WUDWRVSKHULF
6XFFHVV
)URPWKHERRN«
7KH/DZRI9DOXH
<RXUWUXHZRUWKLVGHWHUPLQHGE\KRZPXFKPRUH\RXJLYHLQYDOXHWKDQ
\RXWDNHLQSD\PHQW
+DYH\RXHYHUUHDGDERRNVRVLPSOH\HWHQOLJKWHQLQJWKDWLWFKDQJHG 7KH/DZRI&RPSHQVDWLRQ
\RXUZRUOGYLHZIRUHYHU"
<RXULQFRPHLVGHWHUPLQHGE\KRZPDQ\SHRSOH\RXVHUYHDQGKRZZHOO
,W¶VKDSSHQHGWRPHDIHZWLPHV$QGLWMXVWKDSSHQHGDJDLQ±WKLVWLPH \RXVHUYHWKHP
ZLWK7KH*R*LYHU
7KH/DZRI,QIOXHQFH
2GGVDUH\RXGRQ¶WNQRZRIWKLVOLWWOHJHP,W¶VDXWKRUV%RE%XUJDQG
-RKQ'DYLG0DQQDUHQ¶WQHDUO\DVPDLQVWUHDPDVWRGD\¶VFUHDWLYHWLWDQV <RXULQIOXHQFHLVGHWHUPLQHGE\KRZDEXQGDQWO\\RXSODFHRWKHU
±0DOFROP*ODGZHOO-LP&ROOLQV6HWK*RGLQ*X\.DZDVDNL*DU\ SHRSOH¶VLQWHUHVWVILUVW
9D\QHUFKXNHWF
7KH/DZRI$XWKHQWLFLW\
%XWDVZH8QWHPSODWHUVNQRZVL]HGRHVQ¶WDOZD\VPDWWHUDQGLVUDUHO\
WKHRQO\PHDVXUH 7KHPRVWYDOXDEOHJLIW\RXKDYHWRRIIHULV\RXUVHOI
6RLQWKHVSLULWRIWKLV³OLWWOHVWRU\DERXWDSRZHUIXOEXVLQHVVLGHD´,¶G 7KH/DZRI5HFHSWLYLW\
OLNHWRVKDUHZLWK\RXWKLVVPDOOWUHDVXUH±DJLIWWR\RXWRDFKLHYH
JUHDWQHVV 7KHNH\WRHIIHFWLYHJLYLQJLVWRVWD\RSHQWRUHFHLYLQJ
*R*HWWHUVYV*R*LYHUV «
:H¶UHDOOIDPLOLDUZLWK³*R*HWWHUV´<RXPD\HYHQEHRQH\RXUVHOI$ 7KH%LJ3LFWXUHDQG<RXU5HDOLW\
*R*HWWHULVDQDJJUHVVLYHO\DPELWLRXVSHUVRQZKRZRUNVKDUGHUDQG
IDVWHUWKDQWKHUHVW6KH¶VGULYHQE\DFFRPSOLVKPHQWUHZDUGDQGWRD 7KHZRUOGRIEXVLQHVVLVFKDQJLQJ«RUKDVDOUHDG\FKDQJHG7KRVH
FHUWDLQH[WHQWVWDWXV DFKLHYLQJVWUDWRVSKHULFVXFFHVVWDNH=DSSRVFRPIRUH[DPSOHSXWWKH
FXVWRPHUILUVWDQGQHYHUIOLQFKIURPWKLVSRVLWLRQ7KLVLVQ¶WDIDG
*R*HWWHUVDUHQ¶WDOOVHOILVKEXIIRRQV%XWPDQ\DUH±SXWWLQJWKHPVHOYHV LW¶VDWUHQG$QGWKHWLSSLQJSRLQWLVLQRXUUHDUYLHZPLUURU
ILUVWDQGFDULQJPRUHDERXWWKHLUSHUVRQDODJHQGDVWKDQWKHQHHGVRI
RWKHUV$QGPDQ\EHOLHYHLQWKHHQGVMXVWLI\LQJWKHPHDQV $QGWKLVLVQ¶WDRQHVLGHGDIIDLU%HFRPLQJD*R*LYHULVQ¶WRQO\D
SURYLGHU¶VUHVSRQVLELOLW\,WPXVWDOVREHDFRQVXPHU¶VUHVSRQVLELOLW\
6RZKLOH*R*HWWHUVFDQEHWUHPHQGRXVO\VXFFHVVIXOVXFKVXFFHVVLV :K\"%HFDXVHFRQVXPHU¶VFKRLFHVPDWWHU6RUHZDUGWKRVHSURYLGHUV
ZKRPHPEUDFHJRJLYLQJE\FKRRVLQJWKHP7KLVVSDZQVWKHXSOLIWLQJ

F\FOHRIDJRJLYLQJVRFLHW\ PDQLSXODWHZKLFKVWRULHVDUHSRVWHGDQGZKLFKEORJVDUHOLQNHGWRDQG
IRU\HDUVWKHUHDUHILUPVWKDWKDYHZRUNHGWRPDQLSXODWHZKLFKOLQNV
6RDV\RXVHHNWRGHVLJQ\RXURZQUHDOLW\DQGOLYHOLIHRQ\RXURZQWHUPV FRPHXSKLJKHURQWKHVHDUFKUHVXOWVDVZHOO$VWKHVHVLJQSRVWVEHFRPH
8QWHPSODWHUVW\OHSOHDVHDGRSWWKH*R*LYHUPHQWDOLW\7KLVLVILUVWD PRUHQRWOHVVLPSRUWDQWWKHUH¶VDVLJQLILFDQWPDUNHWRSSRUWXQLW\IRU
SOHDWR\RXEHFDXVH,ZDQW\RXWRVXFFHHG6HFRQGWKLVLVDKRSHWKDW VRPHRQHZKRFDQDV%LOOERDUGGLGFOHDQXSWKHFKDUWVDQGPDNHWKH
WRJHWKHU±WKURXJKDJLIWJLYLQJVRFLHW\±ZHFDQEHWWHUWKHZRUOG SD\RODZRUWKOHVVRUDWOHDVWPRUHWUDQVSDUHQW,QWKHPHDQWLPHEH
VNHSWLFDO
2IFRXUVHIHHOIUHHWRGLVDJUHHZLWKPH%XWLI\RXGRNQRZWKDW\RX¶OOEH
GLVDJUHHLQJZLWKWKHOLNHVRI-DVRQ)ULHG7RQ\+VLHK6HWK*RGLQ
6SHQVHU-RKQVRQDQGFRXQWOHVVPRUH
7+(60$573$66,9(,1&20(%/2*
<RXU0RPHQWRI7UXWK
:D\VWR%H(YHU\ZKHUH±
6RZKLFKDUH\RX±D*R*HWWHURUD*R*LYHU"&KRRVHZLVHO\
%XLOGLQJD%UDQG2QOLQH
36« -8/$0
7KLVZDVEXWWKHEULHIHVWRIUHYLHZVRI7KH*R*LYHU7KHUHLVVRPXFK
PRUHWROHDUQDQGJDLQIURPWKHERRN,+,*+/<HQFRXUDJH\RXWRUHDG
LW,W¶VVKRUW<RXFDQUHDGLWLQDGD\HDV\6RQRH[FXVHV+DYHDWLW
3KRWR6N\DQWK
6(7+¶6%/2*
3D\ROD /DVWZHHNDQ63,UHDGHUDVNHGPHWKHIROORZLQJTXHVWLRQ
-8/$0
³3DW<RXVHHPWREH(9(5<:+(5(RQOLQH(YHU\ZKHUH,JRSHRSOH
)RUWZHQW\\HDUVWKH%LOOERDUGFKDUWVZHUHHDV\WRPDQLSXODWH%\ DUHWDONLQJDERXW\RXDQG\RXUQDPHDOZD\VFRPHVXS+RZGR\RXGR
SD\LQJUDGLRVWDWLRQVDQGVRPHUHWDLOHUVUHFRUGODEHOVFRXOGSXVKDQDFW LW"´
WRWKHWRSZKLFKZRXOGLQFUHDVHVDOHV3HRSOHOLNHGEX\LQJZKDWWKH\
KHDUGRQWKHUDGLRDQGWKHUDGLRSOD\HGZKDWWKH\WKRXJKWSHRSOHZHUH 7REHKRQHVW,QHYHUEHOLHYHG,ZRXOGEHFRPHWKLVVXFFHVVIXORQOLQH
EX\LQJ HVSHFLDOO\ZLWK63,±DEORJLQWKH³PDNHPRQH\RQOLQH´QLFKHZKLFKDV
\RXSUREDEO\NQRZLVZLOGO\RYHUVDWXUDWHG$OWKRXJKP\VXFFHVVLV
%LOOERDUGFKDQJHGWKHLUPHWKRGVDERXWWZHQW\\HDUVDJRDQGRYHUQLJKW SDUWLDOO\DFFLGHQWDO,NQRZH[DFWO\ZK\,¶PKHUH
WKHDFWVRQWKHOLVWFKDQJHG6XGGHQO\LWEHFDPHFOHDUWKDWZKDWZHZHUH
OLVWHQLQJWRZDVQ¶WZKDWZHWKRXJKWLWZDVDQGDVDUHVXOWWKHPDUNHWLQJ :KDWLWUHDOO\FRPHVGRZQWRLVWKLV
RIPXVLFFKDQJHGIRUHYHU
,I\RXZDQWWREHFRPHVXFFHVVIXORQOLQH\RXPXVWWKLQNDERXW
7KH1HZ<RUN7LPHVEHVWVHOOHUOLVWLVHYHQPRUHHDVLO\PDQLSXODWHGWKDQ ZKDW\RXGRDVEXLOGLQJDEUDQG,QRUGHUWREXLOGDEUDQG
%LOOERDUGHYHUZDV,WGRHVQ¶WFRVWPXFKWRVFDPLWDQGLW¶VSUHWW\ \RXPXVWGRZKDW\RXFDQWREHHYHU\ZKHUH
VWUDLJKWIRUZDUGWREX\\RXUZD\RQWRWKHOLVW,NQRZDXWKRUVZKRKDYH
GRQHWKLVDQGFRQVXOWDQWVZKRVHOOWKLVVHUYLFH<RXFDQKLUHDEXQFKRI $VXFFHVVIXOEORJJHULVQRWMXVWDEORJJHU7UXH±LW¶VWKHEORJZKHUH
ROGODGLHVZKRZLOOJRLQWRWKHµULJKW¶VWRUHVDQGEX\ERRNVRQWKHULJKW WKLQJVJHWVWDUWHG,W¶VZKHUHDXWKRULW\LVFRQVWUXFWHGDQGFRQWHQWLV
GD\$VDUHVXOWRIWKLVGLVWRUWLRQWKHERRNVRQWKHOLVWJHWPRUH SXEOLVKHG%XWLI\RXVWLFNWRMXVWDEORJ\RX¶OOEHMXVWWKDW±VWXFNWR
SURPRWHGDQGWKXVVHOOPRUHFRSLHV,W¶VQRWSUHWW\EXWLW¶VWUXH7KH \RXUEORJ
7LPHVLVZHOODZDUHWKDWWKLVLVJRLQJRQWKDWWKHOLVWLVQ¶WDFFXUDWHEXW
WKH\SHUVLVWLQSXEOLVKLQJOLVWVWKDWDUHGHPRQVWUDEO\ZURQJ,VWLOOILQG <RXUEORJRU\RXUZHEVLWHLVRQO\WKHEHJLQQLQJ,W¶V\RXUKXE\RXU
WKLVDPD]LQJEXWLW¶VWUXH KRPHEDVHZKHUHSHRSOHFDQJRWRILQGRXWPRUHDERXWZKR\RXDUHDQG
ZKDW\RXGREXWLW¶VDOVRMXVWRQHSLHFHRIWKHJLDQWSX]]OHWKDWLV\RXU
0DQLSXODWLQJVRFLDOQHWZRUNVLVHDVLHUVWLOO7KHUHDUHILUPVWKDW

EUDQG±\RXURPQLSUHVHQWLQIOXHQWLDODQGLIDSSOLFDEOHPRQH\ +DYH\RXHYHUWKRXJKWDERXWH[SDQGLQJ\RXUEUDQGRQWRRWKHUPHGLD

PDNLQJEUDQG W\SHVVXFKYLGHRV"+RZDERXWSRGFDVWLQJ"/LYHVWUHDPLQJ"3ULQWHG
ERRNV"
%HORZDUHZD\VWRVLPSO\EHHYHU\ZKHUH
2QO\RQO\ZLOOWKLVKHOS\RXJHWPRUHWUDIILFE\UHDFKLQJSHRSOH\RX
6WHS2XWRI<RXU&RPIRUW=RQH ZRXOGQ¶WQRUPDOO\UHDFKZLWKDEORJDORQHEXWLWZLOOGHILQLWHO\H[SDQG
\RXUEUDQGDVZHOO
%HIRUH,JHWLQWRPRUHVSHFLILFDFWLRQDEOHLWHPV\RXPXVWILUVWUHDOL]H
WKDW³EHLQJHYHU\ZKHUH´LVQ¶WJRLQJWREHDZDONLQWKHSDUN,W¶VJRLQJWR 'DUUHQ5RZVHIURP3UREORJJHUQHWZDVWKHILUVWSHUVRQ,NQHZIURP
EHXQFRPIRUWDEOHDWWLPHVEHFDXVH\RX¶UHGRLQJWKLQJVWKDW\RXDUHQ¶W RQOLQHWKDWZDV³HYHU\ZKHUH´
XVHGWRRUHYHQVFDUHGWRGR
,NQHZDERXWKLVEORJEXWWKHQ,ZHQWWR%DUQHVDQG1REOHDQGVDZKLV
:LWKWKDWVDLGOHWPHWHOO\RXWKLVWKHRQO\WKLQJKROGLQJ\RXEDFN SULQWHGERRNLQSHUVRQ6HHLQJWKDWERRNUHDOO\FKDQJHGP\YLHZDERXW
LV\RX ZKRKHZDVDQGPDGHKLPDQGKLVEORJHYHQPRUHRIDQDXWKRULW\LQ
WKHEORJJLQJQLFKHLQP\H\HV+HKDVGHILQLWHO\GRQHDJUHDWMRE
,Q7KH+RXU:RUN:HHN7LP)HUULVVJLYHVXVVRPHH[HUFLVHVWR H[SDQGLQJKLVEUDQGEHFDXVHKHDOVRKDVYLGHRVSRGFDVWVDQGKDVGRQH
SHUIRUPWKURXJKRXWWKHERRNWRKHOSWUDLQRXUHQWUHSUHQHXULDOPLQGV VRPHOLYHVWUHDPLQJLQWKHSDVWQRWWRPHQWLRQDQDGGLWLRQDOSULQWHG
2QHSDUWLFXODUH[HUFLVHZDVWRHQWHUDFURZGHGDUHDDQGOD\\RXUVHOI ERRNWKDWKHMXVWUHFHQWO\SXEOLVKHG
GRZQIODWRQWKHIORRUORRNLQJXSZDUGV
+H¶VDWWKHWRSRIKLVQLFKHIRUDUHDVRQ
:KDW¶VWKHSRLQW"
)RUP\VHOI,¶PJHWWLQJWKHUH,KDYHDJUHDWIROORZLQJRQ<RX7XEHDQG
7KHSRLQWLVWKDWLWZLOOWUDLQ\RXWRGRWKLQJVWKDW\RXZRXOGQ¶WQRUPDOO\ DPDERXWWRODXQFKDSRGFDVWDVZHOO
GRWRJHW\RXWRQRWZRUU\VRPXFKDERXWZKDWRWKHUSHRSOHDUHWKLQNLQJ
DQGMXVWWDNHDFWLRQ±QRPDWWHUKRZVLOO\RUULGLFXORXVDQLGHDPD\EHDW *HW2QWR6RFLDO1HWZRUNV
WKHWLPH
7KLVRQHVKRXOGEHDJLYHQ
:KHQ,ILUVWWKRXJKWDERXWZULWLQJP\ILUVWH%RRNLWZDVVRPHWKLQJ,
KRQHVWO\GLGQRWZDQWWRGR,ZDVDIUDLGRIWKHSURFHVVDQG,GLGQ¶WNQRZ ,I\RX¶UHQRWXWLOL]LQJ6RFLDO1HWZRUNVOLNH7ZLWWHURU)DFHERRNDVDQ
LILWZRXOGVHOOHYHQRQHFRS\:HOO,¶PJODG,VWHSSHGRXWRIP\FRPIRUW H[WHQVLRQRI\RXUEORJQRWMXVWWRVS\RQ\RXUIULHQGVEXWWRQHWZRUN
]RQHDQGGHFLGHGWRZULWHWKDWH%RRNEHFDXVHLWWXUQHGLQWRDVL[ILJXUH ZLWK\RXUDXGLHQFHDQGDFWXDOO\SURYLGHJRRGUHOHYDQWFRQWHQWRQWKHQ
RQOLQHEXVLQHVV \RX¶UHQRWGRLQJHYHU\WKLQJ\RXFDQWREHHYHU\ZKHUH7KHWKLQJLV7+,6
LVZKHUHHYHU\RQHLV
.HHS<RXU%UDQG&RQVLVWHQW
3OXVWKHVLPSOHYLUDOQDWXUHRIWKHVHVLWHVDORQHGRHVZRQGHUVWRKHOS
7KHJRDOLVWREHHYHU\ZKHUHEXWWKHWULFNLVWRPDNHLWDVHDV\DV H[SDQG\RXUEUDQGDQGJHWQRWLFHGE\SHRSOHZKRZRXOGQHYHUKDYH
SRVVLEOHIRUSHRSOHWRUHFRJQL]HWKDW\RXDUHLQGHHGHYHU\ZKHUH7KLV KHDUGRI\RXRWKHUZLVH
PHDQVXVLQJWKHVDPHJUDSKLFVDQGWKHVDPHORJRVZKHUHHYHU\RXDUH
RQOLQH /XFNLO\LWGRHVQ¶WWDNHPRUHWKDQPLQXWHVWRVHWXSD7ZLWWHUDFFRXQW
DOWKRXJKLWPD\WDNHDELWPRUHWLPHWRFKDQJHWKHJUDSKLFVDQG³EUDQG
7KLVLVLPSRUWDQWEHFDXVHLPDJHUHFRJQLWLRQLVWKHQXPEHURQHZD\WKDW LW´DQG,¶YHODLGRXWH[DFWO\KRZWRVHWXS\RXU)DFHERRN3DJHKHUH
SHRSOHPDNHFRQQHFWLRQVLQWKHLUEUDLQ+XJHFRPSDQLHVNQRZWKLVDQG
HYHQEDELHVNQRZWKLVZKHQWKH\UHFRJQL]HWKHIDFHRIWKHLUPRWKHUIRU :ULWH*XHVW3RVWVRQ2WKHU%ORJV
FRPIRUWDQGIRRG
7KLVLVKXJH
7KLVLVZK\,GRP\EHVWWREUDQGHDFKRIP\SDJHVRQOLQHWKHVDPH0\
EORJP\7ZLWWHUDFFRXQWDQGHYHQP\)DFHERRN/DQGLQJ3DJHDOOORRN +8*(
YHU\VLPLODU0\JUDYDWDUZKLFKVWDQGVIRU*OREDOO\5HFRJQL]HG$YDWDU
±WKHLPDJHWKDWVKRZVXSQH[WWRP\FRPPHQWVRQDQ\VLWHWKDW,OHDYH *XHVWEORJJLQJLVSUREDEO\WKHHDVLHVWZD\WRJHWDORDGRIUHOHYDQWWUDIILF
FRPPHQWVRQHYHQXVHVWKHVDPHH[DFWSLFWXUHDVLQWKHVHSURILOHV WR\RXUEORJLQWKHVKRUWHVWDPRXQWRIWLPH%H\RQGWKDWDQGHYHQPRUH
LPSRUWDQWIRU\RXUEUDQG\RXDQG\RXUVLWH¶VXUODQGSRVVLEO\\RXUORJR
([SORUH2WKHU)RUPVRI0HGLD WRRZLOOEHVKRZQWRWRQVRISHRSOHZKRPD\KDYHQHYHUKHDUGRI\RXRU
\RXUZHEVLWHEHIRUH$IWHUJHWWLQJSXEOLVKHG\RX¶OOEHLQVWDQWO\NQRZQE\
6R\RXKDYHDEORJ WKDWPXFKPRUHSHRSOHZKHQWKH\FRPHDFURVVWKHEORJSRVWOLYHRQWKH
VLWHRULQWKHEORJRZQHU¶V566IHHG

7KHUHDUHVHYHUDOIUHHJXLGHVDERXWKRZWRJXHVWSRVWRQOLQH0\ UDQGRPZHEVLWHVWKDW,¶YHQHYHUEHHQWREHIRUH0\QDPHDQGDOLQNWR
IDYRULWHVDUH*OHQ$OOVRS¶V*XHVW%ORJJLQJ7KH8OWLPDWH*XLGHDQG&KULV P\VLWHVKRZXSRQIRUXPVDQGEORJVDURXQGWKHZRUOGQRWEHFDXVHRI
*XWKULH¶V*XHVW3RVWLQJ>8OWLPDWH*XLGH@<HS±WKDW¶VWZRXOWLPDWH PHEXWEHFDXVHRIP\UDYLQJIDQVDQGWKHLUUHFRPPHQGDWLRQV
JXLGHVULJKWWKHUH
7KDQN\RX±\RXNQRZZKR\RXDUH
2YHUGHOLYHU2Q<RXU&RQWHQW
2ND\,KDYHWRPHQWLRQE\EXGG\*OHQDW9LSHUFKLOOFRPRQFHDJDLQ
+H¶VWKHPDVWHURIRYHUGHOLYHULQJDQGDSULPHH[DPSOHRIZKDWFDQ
KDSSHQWRDEORJZKHQ\RXRYHUGHOLYHURQ\RXUFRQWHQW
±±±±±±±
$ERXWRIWKHSRVWVKHZULWHVRQKLVEORJDUHPDVVLYHWXWRULDOOLNH $VDOZD\V,MXVWZDQWHGWRWKDQN\RXIRUVXEVFULELQJ7KLVEORJLVD
EORJSRVWVWKDW,¶PVXUHWDNHKRXUVDQGKRXUVRIUHVHDUFKDQGZRUN+LV VXFFHVVEHFDXVHRI\RXDQG\RXUVXSSRUW+HUH¶VWR\RXURQOLQH
SRVWVDUHDUWLQWKHIRUPRIZRUGVDQGKHJRHVLQWRVRPXFKGHSWKDERXW VXFFHVV
HYHU\WKLQJWKDWLWOLWHUDOO\PDNHVPHGURRO
5HFHQWO\KHMXVWVXUSDVVHGWKHVXEVFULEHUPDUNDOWKRXJK WKHFRQYHUVDWLRQ
)HHGEXUQHULVDFWLQJZHLUGODWHO\EXWQRQHWKHOHVVZKLFKPHDQVKH
HDUQHGDERXWVXEVFULEHUVLQOHVVWKDQD\HDU7KDW¶VXQKHDUGRILQ 7KDQN\RXVRPXFK
WKHEORJJLQJZRUOG
:D\VWR%H(YHU\ZKHUH±%XLOGLQJD%UDQG2QOLQH
,WGLGQ¶WKDSSHQEHFDXVHKHZULWHVEORJSRVWVFRQVLVWHQWO\+HGRHVQ¶W±
HYHQWKRXJKWKDW¶V³WKHUXOH´ZH¶UHDOOVXSSRVHGWRIROORZ,WKDSSHQHG
EHFDXVHKLVSRVWVDOZD\VRYHUGHOLYHUDQGEHFDXVHWKH\GRWKH\VSUHDG %86,1(6623325781,7,(6:(%/2*
OLNHZLOGILUHDQGKLVVXEVFULEHUVKLSJURZVDVDUHVXOW
+RZ7KH\'LG,W«7KH2OG
:KHQ,¶YHWDNHQWKHWLPHWRZULWH.,//(5SRVWVDQG,PHDQSRVWVWKDW
WDNHGD\VRIUHVHDUFKDQGMXVWUHDOO\KDYHDWRQRIJUHDWFRQWHQWLQLW,¶YH 6SLFH&RPPHUFLDO
VHHQDOORIP\QXPEHUVJURZDVDUHVXOWLQFOXGLQJYLUDOQXPEHUVOLNH -8/30
UHWZHHWVDQGOLNHVZKLFKKHOSH[SDQGP\EUDQGWRSHRSOH,¶YHQHYHU
UHDFKHGEHIRUH /DVW7KXUVGD\ZHVKRZHG\RXDQLQFUHGLEOH79FRPPHUFLDODERXW2OG
6SLFHGHRGHUDQW
&UHDWH5DYLQJ)DQV
,VDLDK0XVWDIDWKHDFWRULQWKHFRPPHUFLDODSSHDUHGRQWKH*79
,WWDNHVWLPHEXWLI\RXFRQWLQXHWRSURYLGHJRRGFRQWHQWRQ\RXUEORJ SURJUDPDQGVSLOOHGVRPHRIWKHVHFUHWVEHKLQGWKHFRPPHUFLDO
DQGEXLOGDQLFHFRPPXQLW\EHKLQGLWDIWHUDZKLOH\RX¶OOHYHQWXDOO\VHH
WKDW\RXDQG\RXUEORJPD\DFFXPXODWHDQXPEHURI³UDYLQJIDQV´,OLNH
WRWKLQN,KDYHDIHZKHUHRQ63,DQG,ORYHHDFKDQGHYHU\RQHRQHRI
WKHPWRGHDWK
5DYLQJVIDQVVKRXOGEHWUHDWHGOLNHUR\DOW\DQG\RXVKRXOGJRRXWRI
\RXUZD\WRPDNHWKHPKDSS\'RIDYRUVIRUWKHPRUMXVWVSHQGWLPH
WDONLQJWRWKHPRQ)DFHERRNRUWKURXJKHPDLO
:K\"
%HFDXVHWKH\DUHWKHRQHVZKRVSUHDGWKHZRUGDERXW\RXDQG\RXUVLWH
6RPHUDYLQJIDQVDUHPRUHHQWKXVLDVWLFWKDQRWKHUVEXWHDFKRQHSOD\V
DQLPSRUWDQWUROHLQH[SDQGLQJ\RXUEUDQGDQGLQIOXHQFLQJSHRSOHZKR
\RXDORQHFDQQRW
/HWPHVD\WKDWDJDLQ\RXUUDYLQJIDQVZLOOLQIOXHQFHSHRSOHZKR
\RXDORQHFDQQRW
7KLVLVZK\HDFKDQGHYHU\GD\,QRWLFHDKXJHLQIOX[RIWUDIILFIURPDIHZ

%86,1(6623325781,7,(6:(%/2* %86,1(6623325781,7,(6:(%/2*
6DP¶V&OXE2IIHUV6PDOO%L] :LWK2QH)LQJHU«
-8/30
/RDQV
-8/30 $FFRUGLQJWR7KH8QRIILFDO$SOH:HEORJDUWLVWVDUHWDNLQJWRWKHL3DG
OLNHGXFNVWRZDWHU
7KHGHYLFHVHHPVWREHDQDWXUDOWRROIRUPDQ\DUWLVWVWRXVHDQGWKH
SXEOLFLVQRZVWDUWLQJWRVHHWKHIUXLWVRIWKHUHODWLRQVKLSLQWKHIRUPRI
VRPHVWDUWOLQJDQGEHDXWLIXOGLJLWDODUW
.\OH/DPEHUWLVDSHUIHFWH[DPSOHRIDQDUWLVWZKRKDVTXLFNO\DGDSWHGWR
WKHL3DGDVDQDUWFUHDWLRQWRRO
7KH&KHVKLUH(QJODQGEDVHGSRUWUDLWDUWLVWUHFHQWO\VSHQWVL[KRXUV
SDLQWLQJDQDVWRXQGLQJO\JRRGSRUWUDLWRISHUIRUPHU%H\RQFHXVLQJDQ
L3DGKLVILQJHUDQGWKH%UXVKHVL3DGDSS86
/DPEHUWPDNHVWLPHODSVHPRYLHVRIKLVFUHDWLRQSURFHVVDQGLW¶V
IDVFLQDWLQJWRVHHWKHGHWDLOVRI%H\RQFH¶VIDFHHPHUJHIURPWKHGLJLWDO
FDQYDV
86$72'$<LVUHSRUWLQJWKDW6DP¶V&OXEVDLGLWZLOORIIHUVPDOOEXVLQHVV $PD]LQJ
ORDQVRIXSWRWRLWVVPDOOEXVLQHVVPHPEHUV
7KHGLYLVLRQRI:DO0DUWEDVHGLQ%HQWRQYLOOH$UNLV
WHVWLQJDSURJUDPZLWK6XSHULRU)LQDQFLDO*URXSRQHRI
IHGHUDOO\OLFHQVHGQRQEDQNOHQGHUVDQGZLOORIIHUWR
ORDQVWRPHPEHUVZKRTXDOLI\ %86,1(6623325781,7,(6:(%/2*
6DP¶V&OXEVD\VRILWVEXVLQHVVPHPEHUVUHSRUWHGWKH\ 7KH,FH&UHDP.LG
ZHUHGHQLHGDORDQLQD1RYHPEHUVXUYH\7KDW¶VXSIURP -8/30
LQ$SULO
7KHSURJUDPZLOOIRFXVRQPLQRULW\ZRPHQDQGYHWHUDQ
RZQHGEXVLQHVVHV
6DP¶V&OXEPHPEHUVZKRDSSO\IRUDVPDOOEXVLQHVVORDQ
GXULQJWKHSLORWZLOOUHFHLYHRIIWKHDSSOLFDWLRQIHHD
GLVFRXQWDQGDGLVFRXQWRQLQWHUHVWUDWHV
3KRWRE\6DP¶V&OXE
$FFRUGLQJWRWKH1HZ<RUN'DLO\1HZV%HFN-RKQVRQKDGDEXVLQHVV
SODQKLVVWDUWXSIXQGLQJDGUHDPRIRSHQLQJDQLFHFUHDPVWDQGEXWILUVW
KHQHHGHGDYDULDQFHIURPWKH6XQDSHH]RQLQJERDUGWRRSHQLQD
UHVLGHQWLDO]RQH
+HDGPLWVEHLQJDELW³IUHDNHGRXWÉHIRUHKLVSUHVHQWDWLRQ
EXWXOWLPDWHO\JRWWKHJRDKHDG7KDWZDV2FW²

IRXUPRQWKVVK\RI%HFN¶VWKELUWKGD\ 7KHLUOHPRQDGHVWDQGZDVFXVWRPPDGHE\WKHLUXQFOH/XFDV
0F&ROOXPDQGSUHVHQWHGWR0DGGLHE\KHUJUHDW
6DQFWXDU\'DLU\)DUP,FH&UHDPZKLFKRSHQHGLQ0D\LV JUDQGIDWKHU5R\'ULQNDUGDVDQHDUO\ELUWKGD\JLIW
DOUHDG\DERRPLQJEXVLQHVVXQGHUWKHGLUHFWLRQRIWKH\RXQJ
HQWUHSUHQHXU,WJURVVHGLQ0D\DQG-XQH¶VQXPEHUV +HUILUVWWKRXJKWZDVWKDWVKHZDQWHGWRHDUQHQRXJKPRQH\
ORRNHGWREHHYHQKLJKHU WRSD\KHURZQZD\WR'LVQH\:RUOGEXWDSURJUDPRQ
WHOHYLVLRQFKDQJHGKHUPLQG
³+HFHUWDLQO\KDVGULYH´VDLG%HFN¶VIRXUWKJUDGHWHDFKHU
.DWLH%OHZLWWZKRDOVRVXSSOLHVWKHKRWIXGJHIRUKLVVWDQG ³,ZDVZDWFKLQJ79ODWHRQHQLJKWDQG,VDZDOOWKHELUGVDQG
³,W¶VKLVSHUVRQDOLW\WUDLW²KHOLNHVWRDFFRPSOLVKWKLQJV´ RWKHUDQLPDOVDQGZLOGOLIHWKDWKDGEHHQHIIHFWHGE\WKHRLO
VSLOO´H[SODLQHGWKHQLQH\HDUROGHQWUHSUHQHXU³7KH\ZHUH
6RPHRIKLVEXVLQHVVVDYY\KHSLFNHGXSE\DWWHQGLQJWKH FRYHUHGLQRLODQGVRPHRQHZDVWU\LQJWRJHWLWRIIRIWKHP
LQWHQVLYH³,FH&UHDPļFRXUVHDW3HQQ6WDWH¶V&ROOHJHRI ZLWKVRDS´
$JULFXOWXUDO6FLHQFHVZLWKKLVPRWKHUWKHODVWZHHNHQGLQ
-DQXDU\ 0DGGLHGZHOOHGRQWKHLGHDIRUDZKLOHWKHQGHFLGHGWKDW
LQVWHDGRIDYDFDWLRQKHUPRQH\VKRXOGJRWRZDUGWKHFOHDQ
³,WZDVDXQLTXHVLWXDWLRQ´3URIHVVRU5REHUW5REHUWV XSHIIRUWVRIWKH*XOI&RDVWZLOGOLIH
GLUHFWRURIWKHSURJUDPVDLGRIKDYLQJDFKLOGWDNHDFRXUVH
JHDUHGIRUDGXOWHQWUHSUHQHXUV³+HZDVQRWHPEDUUDVVHGWR 0DGGLHKDVKDGVRPHKHOSIURPKHUIULHQGV.D\OHHDQG/LOOLH
DVNTXHVWLRQVDQGKLVTXHVWLRQVZHUHLQWHOOLJHQW´ 5XWKHUIRUGDQGRIFRXUVHKHUHPSOR\HHVEURWKHU5R\
DQGVLVWHU0RUJDQ
%HFNVDLGKH¶VVDYLQJXSWREX\DZLQGPLOO²DWDFRVWRI
DERXW²WRRIIVHWWKHSOXVPRQWKO\HOHFWULFDO 7KHWULRKDVGRQHZHOOZLWKWKHLUHQGHDYRUVHOOLQJFXSV
FRVWRIUXQQLQJWKHVWDQG¶VIUHH]HUVDQGDSRUWLRQRIKLV RISLQNOHPRQDGHLQMXVWRQHGD\ODVWZHHN
IDPLO\¶VKRPH
7KH\SODQWRWDNHWKHZKROHEXVLQHVVGRZQWR0LWFK6PLWK
3KRWRE\$3 &KHYUROHWRQ6DWXUGD\VVWDUWLQJLQ-XO\0LWFKWKHLU
JUDQGIDWKHUORRNVIRUZDUGWRWKHPEULQJLQJLQORWVRIH[WUD
FXVWRPHUV
³,WPDNHVPHIHHOJRRGWRNQRZ,¶PKHOSLQJLQVRPHZD\´
VDLG0DGGLHWKRXJKWIXOO\
%86,1(6623325781,7,(6:(%/2*
3KRWRE\PDULQHSKRWREDQN
$/LWWOH/HPRQDGH7R$LG*XOI
2LO6SLOO&OHDQXS
-8/30
&XOOPDQ7LPHV
0DGGLH5R\DQG0RUJDQ*ULPPHWWKDYHEHHQZRUNLQJKDUG
IRUWKHSDVWFRXSOHRIZHHNVIURPDPXQWLOSP
WRVXSSO\&XOOPDQUHVLGHQWVZLWKOHPRQDGHDQGDVPLOH

%86,1(6623325781,7,(6:(%/2* (YHQWRGD\VHDUFKEDFRQRQ*RRJOHDQGEDFRQ
H[SORVLRQLVWKHILUVWSRVVLELOLW\WKDWSRSVXS
7ZR*X\V$QG7KHLU%DFRQ
3KRWRE\%DFRQ([SORVLRQ
([SORVLRQ
-8/30
%86,1(6623325781,7,(6:(%/2*
7KULIW\0RP7XUQHG'HDO$
'D\(QWUHSUHQHXU
-8/30
7KH.DQVDV&LW\6WDUUHSRUWVWKDW,W¶VQRWKDUGWRFRPHXSZLWKWKHRULHV -DPLH5DWQHUZDVORRNLQJIRUWKHSHUIHFWZHGGLQJGUHVV'HWHUPLQHGWR
RQKRZWKH%DFRQ([SORVLRQJRWLWVQDPHEXWKHUH¶VWKHUHDOVWRU\ ILQGDJRRGGHDOVKHZDVQRWGHWHUUHGZKHQVKHVDZDOOWKHKHIW\SULFH
VWUDLJKWIURPWKHSLJ¶VVQRXW WDJVVWXFNWRHDFK9HUD:DQJGUHVV7KDWZDVXQWLOVKHPDQDJHGWRILQG
RQHDWRIIUHSRUWV*D]HWWHQHW
,WZDV'HFHPEHUDQG-DVRQ'D\KDGVRPHWKLQJWR
VKRZKLVEDUEHFXHFRQWHVWWHDPPDWH$DURQ&KURQLVWHU'D\ $IWHUKHUZHGGLQJVKHVROGWKHGUHVVIRUDSURILW)RUWKHSDVW
KDYLQJWKURZQEDFNVRPHKROLGD\FKHHUDWRQH&KULVWPDV IRXU\HDUVVKHKDVPDLQWDLQHGDEORJWKDWZRXOG]HURLQRQ
SDUW\VKRZHGXSODWHLQWKHHYHQLQJIRUKLVVHFRQGSDUW\DW JRRGGHDOVIRU\RXQJIDPLOLHVLQWKH%HWKHVGDDUHDRURQOLQH
&KURQLVWHU¶VSODFHLQ%URRNVLGH
5DWQHULVGHWHUPLQHGWREULQJKHUQRVHIRUJRRGGHDOVWRD
'D\ZDONHGLQWRWKHNLWFKHQWRVVHGRQWKHWDEOHD6W\URIRDP EURDGHUDXGLHQFHDVVKHODXQFKHV&HUWLILNLGDZHEVLWHWKDW
FRQWDLQHUFRQWDLQLQJDEDFRQZUDSSHGEDFRQVWXIIHG ZLOOUHVHPEOHRQOLQHJURXSGLVFRXQWVHUYLFHVVXFKDV
EDUEHFXHVDXFHLQIXVHGORJRIVPRNHG,WDOLDQVDXVDJHDQG /LYLQJ6RFLDODQG*URXSRQEXWZLWKDQDUURZHUIRFXV
DQQRXQFHG³%RRP%DFRQ([SORVLRQ´
7KHVLWHODXQFKHG0D\5DWQHUVDLGWKHUHZHUHHLJKW
+PPP%DFRQ([SORVLRQ³,ZDVOLNHµ+H\WKDW¶VDJRRG GLVFRXQWSXUFKDVHVRQLWVILUVWGD\DQGDERXW
QDPHIRULW¶"´&KURQLVWHUUHPHPEHUVVD\LQJ VXEVFULEHUVKDGVLJQHGXSIRU&HUWLILNLGZLWKLQDGD\RILWV
ODXQFK
*XHVWVDWWKHILUVWSDUW\KDGPRVWO\WXUQHGXSWKHLUQRVHVDW
'D\¶VFXOLQDU\FUHDWLRQ,WZDVDGLIIHUHQWVWRU\DW &HUWLILNLGZLOOWU\WRFDUYHRXWDQLFKHPDUNHWE\ILQGLQJDQG
&KURQLVWHU¶VKRXVH²SHRSOHWKHUHULSSHGLQWRLW7KHKRVW DGYHUWLVLQJJURXSGLVFRXQWVIRUIDPLOLHVZLWK\RXQJFKLOGUHQ
UHPHPEHUVKDYLQJWRKLGHDQHQGSLHFHIRUKLVEUHDNIDVWWKH 7KHGLVFRXQWVZLOOUXQILYHGD\VDZHHNDQGZLOOEHIRU
QH[WPRUQLQJ EXVLQHVVHVUDQJLQJIURPIDPLO\SKRWRJUDSKHUVDQGFKLOG
IULHQGO\UHVWDXUDQWVWRSOD\J\PVIDPLO\HQWHUWDLQPHQW
,I\RX¶UHDSRUNIDQ\RXSUREDEO\NQRZZKDWKDSSHQHGQH[W FKLOGUHQ¶VKDLUFXWVDQGELUWKGD\SDUW\SDFNDJHV7KHVLWHLV
7KHEDFRQEXGVSRVWHGWKHUHFLSHDQGSLFWXUHVRIWKDWILUVW DOVRPHDQWWRDSSHDOWRFKLOGFDUHSURYLGHUVH[SHFWDQW
%DFRQ([SORVLRQRQWKHLUZHEVLWH7KHQ&KURQLVWHUWZHHWHGLW SDUHQWVDQGJUDQGSDUHQWV
³WRDIHZSHRSOH´WKHUHFLSHZHQWYLUDO7KH1HZ<RUN7LPHV
ZURWHDERXWLW²DQGWKHQWKHUHFLSHZHQWFUD]\YLUDO &HUWLILNLGKDVUHDFKHGHQRXJKGHDOVZLWKEXVLQHVVHVLQWKH
:DVKLQJWRQ'&PHWURDUHDWRFRYHUWZRPRQWKV¶ZRUWKRI
7KHVWRU\DERXWWKHUHFLSH¶VRQOLQHSRSXODULW\ZRXOGEHFRPH GLVFRXQWV5DWQHUVDLG
WKHVHFRQGPRVWUHDGDUWLFOHRQWKH7LPHV¶ZHEVLWHIRUDOORI

/RJRIURP&HUWLILNLG
%86,1(6623325781,7,(6:(%/2*
7KH%XVLQHVV2I%URQ]H
-8/30
+RZPXFKGRHVDNLWFRVW"
6WDUWHUNLWDUHDVORZDV$GGLWLRQDOLWHPVPD\EH
SXUFKDVHGDVQHHGHG
%HVLGHVZKDWLVLQFOXGHGLQDNLWZKDWHOVHPLJKWDQ
HQWUHSUHQHXUQHHGEHIRUHWKH\JHWVWDUWHG"
1RRWKHUH[SHQVHIRUVSHFLDOHTXLSPHQW7KHNLWFRQWDLQVDOO
RIWKHLWHPVWKH\QHHG
:KDWLVWKHPRVWXQXVXDOLWHPWKDWDFXVWRPHUKDVZDQWHG
EURQ]HG":KDWDUHVRPHRIWKHPRUHFRPPRQUHTXHVWV"
&KDQFHVDUHWKDW\RX¶YHVHHQVRPHRQHVRPHZKHUHZLWKDEURQ]HGSDLU
RIµEDE\¶VILUVWVKRHV¶)RUPDQ\EURQ]LQJLVV\QRQ\PRXVZLWKFKLOGKRRG 2QHFXVWRPHULQ2NODGLGDJRRGEXVLQHVVEURQ]LQJEDE\¶V
0DQ\SHRSOHKDYHJRQHRXWRIWKHLUZD\WRKDYHWKHREMHFWVWKDWWKHLU ILUVWGUHVV,SHUVRQDOKDYHGRQHGR]HQVRIGLIIHUHQWLWHPVOLNH
FKLOGUHQORYHGEURQ]HGVRLWFDQEHUHPHPEHUHGIRUHYHU DKRWZDWHUERWWOHIDUPHUVPLONFDQILVKLQJURGFDSVJORYHV
VKRHVERRWVDQGHWF
7KDW¶VQRWDOOWKDWFDQEHEURQ]HGWKRXJK-XVWDVN'DOODV1LFKROV+H
KDVVHHQDORWVLQFHKHILUVWODXQFKHG1LFKROV%URQ]HLQ1RZKH <RXUEXVLQHVVKDVKDGDORQJUXQZLWKRYHU\HDUVXQGHU
VSHQGVKLVWLPHRIIHULQJDNLWVRDQ\RQHFDQPDNHDOLWWOHPRQH\ \RXUEHOW'R\RXKDYHDQ\JRDOV\RX¶GVWLOOOLNHWRDFFRPSOLVK"
EURQ]LQJWKRVHLWHPVWKDWSHRSOHFKHULVK
7RVHHWKHHFRQRP\JHWJRLQJDJDLQ7KLQJVKDYHFRPHWRD
7HOOXVDOLWWOHDERXW1LFKROV%URQ]H6XSSO\ KDOWGXULQJWKHSDVW\HDU
1LFKROV%URQ]HVWDUWHGLQ.DQVDV&LW\0RLQ:H $Q\WLSV\RX¶GOLNHWRRIIHUDQ\RQHWKDWPLJKWEHLQWHUHVWHGLQ
PRYHGWR6HEULQJ)ORULGDLQDQGZH¶UHVWLOOKHUH ODXQFKLQJDEXVLQHVVXVLQJ\RXUEURQ]LQJNLWV"
:KDWLQVSLUHG\RXWRODXQFK\RXUEXVLQHVV" $OWKRXJKEXVLQHVVLVVORZGXHWRWKHHFRQRP\QRZLVDJRRG
WLPHWRJHWVWDUWHGDQGEHUHDG\IRUEXVLQHVVZKHQWKH
:KHQP\ILUZVWFKLOGZDVERUQ,EHFDPHLQWHUHVWHGLQ HFRQRP\FRPHVEDFN
EURQ]LQJEDE\VKRHVUHDOL]LQJLWZDVUHDOO\SUHVHUYLQJ
PHPRULHV7KHIROORZLQJSRHPKHOSHGWRLQVSLUHPH

%86,1(6623325781,7,(6:(%/2* %86,1(6623325781,7,(6:(%/2*
,QYHQWLRQ$OORZV<RX7R,QVHUW 6HUYLQJ8S9&:LWK*UDQROD
-8/30
%DWWHULHV$Q\:D\<RX/LNH
-8/30
,I\RXKDYHXVHGDGLJLWDOFDPHUDRUDQ\JDGJHWWKDWUHTXLUHVEDWWHULHV 0HUFXU\1HZVFRP
RFFDVLRQDOO\\RXLQVHUWWKHEDWWHULHVWKHZURQJZD\SUHYHQWLQJWKHGHYLFH
IURPZRUNLQJWLOO\RXVZLWFKWKHPDURXQG &DOOLWWKH%XFN¶V6LOLFRQ9DOOH\%DURPHWHU7KHHFRQRP\PD\
EHZREEO\DQGWKHPRRGRIWKHFRXQWU\DQ[LRXVEXWWKH
*DGJHW9HQXHUHSRUWVWKDW0LFURVRIWKDVLQYHQWHGDQHZWHFKQRORJ\ :RRGVLGHFDIHLVKXPPLQJDJDLQZLWKGHDOPDNLQJ
FDOOHG,QVWD/RDGWKDWDOORZVDGHYLFHWREHSRZHUHGUHJDUGOHVVRIZKLFK EUHDNIDVWV
ZD\\RXSXWWKHEDWWHULHVLQ
³7KHUHLVPRUHDFWLYLW\RQWKHYHQWXUHFDSLWDOIURQW7KHUHLV
7KHVPDUWGHVLJQXVHVFRQWDFWVLQWKHJDGJHWWKDWDOORZIRU UHQHZHGHQWKXVLDVP´VDLG-DPLV0DF1LYHQZKRFRRZQV
HLWKHURU±WRPDNHFRQWDFWZLWKWKHP'HSHQGLQJZKLFK WKHUHVWDXUDQWZLWKKLVZLIH0DUJDUHW³$\HDUDJRLWZDV
VLGHRIWKHEDWWHU\KLWVWKHFRQWDFWWKHFRUUHFWPHWDOFRQWDFW DERXWDVEOHDNDVLWKDVHYHUEHHQ3HRSOHZHUHWDONLQJDERXW
ZLOOEHPDGHLQVLGHWKHJDGJHWDQGYLFHYHUVDRQWKHRSSRVLWH WKHGURSLQKRPHYDOXHVDQGMREOHVVQHVVDVRSSRVHGWRGHDO
HQGRIWKHEDWWHU\ IORZV1RZWKHWRSLFLVEDFNRQEXVLQHVV´
,W¶VDVPDUWLGHDDQGRQHZHOOZRUWKWR\DQGJDGJHWFUHDWRUV 2QDUHFHQWPRUQLQJMXVWDERXWHYHU\RQHRIWKHFDIH¶V
ORRNLQJLQWR:HNQRZLW¶VQRWWKDWGLIILFXOWWRVZLWFKWKH VHDWVZHUHRFFXSLHG²HYHQDWDP(QWUHSUHQHXUVVKDUHG
EDWWHULHVDURXQGDQGLWRQO\DGGVPD\EHVHFRQGVRQWRWKH ODSWRSSUHVHQWDWLRQVZLWKSRWHQWLDOIXQGHUVLQYHVWRUVZRUNHG
WLPHLWWDNHVWRLQVHUWEDWWHULHVEXWLWLVFRQYHQLHQWNQRZLQJ VPDUWSKRQHVEHWZHHQELWHVDQGWDEOHWRWDEOHQHWZRUNLQJ
\RXFDQMXVWSXWWKHEDWWHULHVLQDQGJRDQGQRWKDYHWRZRUU\ ZDVLQIXOOVZLQJDVVHUYHUVVZHUYHGDURXQGKDQGVKDNHVDQG
DERXWZKDWZD\DURXQGWKH\DUH FDUGH[FKDQJHVWRGHOLYHUERZOVRIJUDQRODDQG\RJXUWWKH
PHDORIFKRLFHIRUKLJKSRZHUHGHDWHUV
7KHV\VWHPLVFRPSDWLEOHZLWKPDQ\RIWKHFRPPRQEDWWHU\
W\SHVZKLFKLQFOXGHV$$$$$&DQG'DQGWKHV\VWHPZRUNV ³-XVWORRNDURXQGDWWKHVHSHRSOH´VDLGYHWHUDQYHQWXUH
ZLWKERWKUHJXODUDQGUHFKDUJHDEOHEDWWHULHV FDSLWDOLVW%LOO'UDSHUDIWHUVOLGLQJLQWRDERRWKDQGRUGHULQJ
KLVUHJXODUEUHDNIDVW²JUDQRODDQGIUXLWZLWKFRIIHHDQG
3KRWRE\0LFURVRIW RUDQJHMXLFH³1LQHW\SHUFHQWRIWKHPDUHGRLQJEXVLQHVV´
7KRXVDQGVRIFRPSDQLHVIURP+RWPDLOWR7HVOD0RWRUV
ZHUHODXQFKHGDURXQGWDEOHVDW%XFN¶V'HDOVDUHGRQHLQ
WUDGLWLRQDOYDOOH\VW\OHE\VPDUWSHRSOHLQMHDQVDQGRSHQ
FROODUVLQDUHVWDXUDQWZKRVHVLOO\LQWHULRUUHIOHFWVWKHRIIEHDW
KXPRURILWVRZQHU
6FUHHQVKRWIURP%XFN¶VRI:RRGVLGH

-XO\
7RGD\·V7DEEORLG
%86,1(6623325781,7,(6:(%/2*
%86,1(6623325781,7,(6:(%/2*
6KRSSHUV3LFN\$V7KH\+HDG
6DQGZLFK,Q$&DQ"
%DFN7R6WRUHV -8/$0
-8/$0
&110RQH\VD\VVDOHVDWPDMRUUHWDLOHUVURVHIRUDWKVWUDLJKWPRQWKLQ
-XQHEXWPL[HGUHVXOWVUHSRUWHG7KXUVGD\VLJQDOHGWKDWFRQVXPHUVDUH
VWLOOFDXWLRXV ,VSXWWLQJDVDQGZLFKLQDFDQDQGFDOOLQJLWD³&DQGZLFK´WKHQH[WFDQ¶W
PLVVELOOLRQGROODULGHD"
$FFRUGLQJWRVDOHVWUDFNHU7KRPVRQ5HXWHUVZKLFKORRNVDW
PRQWKO\VDOHVIRUOHDGLQJFKDLQVVXFKDV0DF\¶V7DUJHW $FFRUGLQJWR7KH1HZ<RUN7LPHVHYHQLILWLVLQYHVWRUVLQ8WDKZKRSXW
&RVWFRDQG-&3HQQH\-XQHVDPHVWRUHVDOHVURVH PLOOLRQLQWKHKDQGVRIDPRQH\PDQDJHUQDPHG7UDYLV/:ULJKW
7KDWZDVVOLJKWO\EHORZWKHILUP¶VLQLWLDOHVWLPDWHIRUDQ ZLOOVWLOOKDYHWKLQQHUZDOOHWV
LQFUHDVHRI
$ODZVXLWE\WKHIHGHUDO6HFXULWLHVDQG([FKDQJH&RPPLVVLRQ
6DPHVWRUHVDOHVDNH\JDXJHRIDUHWDLOHU¶VSHUIRUPDQFH VD\VWKDW:ULJKWSURPLVHGUHWXUQVRIXSWRSHUFHQWRQUHDO
PHDVXUHVDOHVDWVWRUHVRSHQDWOHDVWD\HDU HVWDWHLQYHVWPHQWVEXWWKDWKHSXWWKHPRQH\LQVWHDGLQWR
&DQGZLFKGHYHORSPHQWDQGRWKHUHTXDOO\XQWULHGLGHDV
:KLOHFRQVXPHUVPD\VWLOOEHKHVLWDQWWRRSHQXSWKHLU
ZDOOHWV-XQH¶VJDLQZDVVWURQJHUWKDQ0D\¶VLQFUHDVH :ULJKWZKRLVDQGOLYHVLQ'UDSHU8WDKDFFRUGLQJWRWKH
DQGDVLJQLILFDQWMXPSIURPWKHGURSLQVDPHVWRUH VXLWGLGQRWUHWXUQWHOHSKRQHFDOOV6HYHUDOOLVWLQJVIRU
VDOHVUHSRUWHGLQ-XQHRIODVW\HDU :DWHUIRUG)XQGLQJZHUHGLVFRQQHFWHGRUQRWLQVHUYLFH
³7KHERWWRPOLQHLVWKDWFRQVXPHUVSHQGLQJLVFRQWLQXLQJWR 0HDQZKLOHWKH&DQGZLFKFRQFHSWSHUVHYHUHV7KHSUHVLGHQW
JURZEXWRQO\PRGHVWO\DQGQRWDWWKHIDVWSDFHZHVDZDWWKH RI0DUN2QH)RRGV0DUN.LUNODQGZKRVDLGKHSDWHQWHGWKH
EHJLQQLQJRIWKH\HDU´VDLG6FRWW+R\WDUHWDLOHFRQRPLVWDW LGHDRISXWWLQJVROLGIRRGLQDEHYHUDJHFRQWDLQHUZLWKWKH
0RRG\¶V(FRQRP\FRP VORJDQ³4XLFN 7DVW\5HDG\WR(DW´VDLG:ULJKWSURPLVHG
IXOOILQDQFLDOEDFNLQJIRU&DQGZLFKSURGXFWLRQWKDWQHYHU
3KRWRE\FKDWWDKER[ UHDOO\PDWHULDOL]HGHYHQDVLQYHVWRUVGLG
+HVDLGKHEHOLHYHGWKDWFDQQHGVDQGZLFKHVZRXOGXOWLPDWHO\
VHOODQGKRSHGWRJRLQWRSURGXFWLRQODWHUWKLV\HDU7KHVKHOI
OLIHRID&DQGZLFKLVH[FHOOHQW.LUNODQGVDLG

3KRWRE\0DUN2QH)RRGV 817(03/$7(5
+RZWREXLOGDPLOOLRQGROODU
FRPSDQ\E\WKHDJHRIZLWK
'$01,:,6+,¶'7+28*+72)7+$7 5D\PRQG/HL
-8/$0
+RZWREORZLWLQWKHILQDO
1DPH5D\PRQG/HL
LQQLQJ &RPSDQ\RR6+,576
-8/$0
,JRWWKHFKDQFHWRVLWGRZQDQGLQWHUYLHZ5D\PRQG/HLZKRLVWKH
IRXQGHURIDFXVWRPVKLUWVFRPSDQ\FDOOHGRR6+,576$WWKHDJHRI
5D\PRQGKDVEXLOWDPLOOLRQGROODUFRPSDQ\IURPKLVFROOHJHGRUPURRP
LQ%HUNHOH\
,QWKLVYLGHRLQWHUYLHZ,SUREHLQWRWKHSURFHVVRIEXLOGLQJWKHFRPSDQ\
DQGKRZKHZDVDEOHWRZLQLQVXFKDVDWXUDWHGPDUNHW,I\RX¶UHD\RXQJ
FROOHJHVWXGHQWORRNLQJWRPDNHLWELJIURP\RXUFROOHJHGRUPURRPWKHQ
WKLVLVWKHYLGHRLQWHUYLHZIRU\RX
6(7+¶6%/2*
$YHU\LPSUHVVLYHYHU\ELJZHEGHVLJQILUPGLGVRPHYHU\LPSUHVVLYH
YHU\LPSRUWDQWUHVHDUFKDQGSXEOLVKHGLWLQDYHU\QLFHYHU\ZHOO )DQVSDUWLFLSDQWVDQG
GHVLJQHGERRN
VSHFWDWRUV
$QGWKHQWKH\OHWDQLQWHUQGRDVORSS\XQSURIHVVLRQDOPDLOLQJ -8/$0
'HWDLOVPDWWHU $JRRGSUHDFKHURXJKWWREHDEOHWRJHWRIWKHSHRSOHZKRVKRZHG
XSRQ6XQGD\WRPDNHDGRQDWLRQ
6KDUH $WHHQ\ERSURFNJURXSPLJKWFRQYHUWRIFRQFHUWJRHUVWREX\DVKLUW
RUVRXYHQLU
$JUHDWVWUHHWPDJLFLDQFDQJHWRIWKHSHRSOHZKRZDWFKKLVVKRZWR
WKURZDGROODULQWKHKDW
'LUHFWPDUNHWHUVXVHGWRVKRRWIRUFRQYHUVLRQIURPDJRRGOLVWEXW
QRZWKDW¶VDORQJVKRW
$EORJJHUPLJKWFRQYHUWRIUHDGHUVWREX\DERRN,¶PDJKDVWDWWKLV
$QGDWZLWWHUXVHUZLWKDORWRIIDQVZLOOEHOXFN\WRJHWRQHRXWRID
WKRXVDQGWRFOLFNDOLQNDQGEX\VRPHWKLQJ
/LNHVIULHQGOLHVDQGKLWVDUHDOOIDVWJURZLQJQXPEHUVWKDWUHTXLUHOLWWOH
FRPPLWPHQW$QGFRPPLWPHQWLVWKHHVVHQFHRIFRQYHUVLRQ7KH
SUREOHPZLWKFRPPLWPHQWLVWKDWLW¶VIULJKWHQLQJIRUERWKVLGHV$QGVR

LW¶VHDV\WRDYRLG:HMXVWFOLFNDQGPRYHRQ ,W¶VDWRVVXSDQG,¶PUHDOO\LQWHUHVWHGLQZKDW\RXWKLQN
,WKLQNWKHUH¶VDWUDQVSDUHQWZDOODQHYHUELJJHURQHEHWZHHQGLJLWDO $UH\RXIRUD)XOO3RVWRUD3DUWLDO3RVWLQWKH566IHHG":KLFK
VSHFWDWRUVDQGGLUHFWLQWHUDFWLRQRUWUDQVDFWLRQ7KHIDVWHUWKHWUDLQLV GR\RXSUHIHUDQGZK\",VWKHUHD³KDSS\PHGLXP´\RX¶GOLNHWRVKDUH"
PRYLQJWKHKDUGHULWLVWRSD\DWWHQWLRQRSHQWKHZLQGRZDQGGR
EXVLQHVV,IDOO\RX¶UHGRLQJLVLQFUHDVLQJWKHQXPEHURIGLJLWDOVSHFWDWRUV
WR\RXUZRUN\RX¶UHXQOLNHO\WRHDUQWKHFRQYHUVLRQ\RXGHVHUYH ±±±±±±±
VXFFHVV
7+(60$573$66,9(,1&20(%/2*
$VNWKH5HDGHU3DUWLDORU)XOO WKHFRQYHUVDWLRQ
3RVWLQ566)HHG" 7KDQN\RXVRPXFK
-8/$0
$VNWKH5HDGHU3DUWLDORU)XOO3RVWLQ566)HHG"
%86,1(6623325781,7,(6:(%/2*
1HZ6HUYLFH6DYHV6WXGHQWV
IURP(YHU%HLQJ/DWH$JDLQ
-8/30
5HFHQWO\DQXPEHURISHRSOHKDYHEHHQDVNLQJPHIRUP\RSLQLRQDERXW
KRZPXFKRIDSRVWRQHVKRXOGVKRZLQWKHLU566IHHG2Q)HHGEXUQHU
ZKLFK,NQRZKDVEHHQRQWKHIULW]ODWHO\DVIDUDVQXPEHUVDUH
FRQFHUQHG\RXFDQFKRRVHWRKDYHHLWKHU\RXUHQWLUHSRVWVKRZQRUMXVW
DSLHFHRILWZLWKDOLQNWRUHDGPRUHEDFNRQWKHVLWH
7RFKDQJH\RXUVHWWLQJLQ)HHGEXUQHUORJLQDQGFOLFNRQWKH
³2SWLPL]H´WDEDQGWKHQFOLFNRQ³6XPPDU\%XUQHU´DWWKHERWWRP
,KDYHDOZD\VVKRZQWKHIXOOSRVWEXWDQXPEHURISHRSOHKDYHPDGHD &ODVV7H[WVLVDVHUYLFHWKDWGHOLYHUVWH[WQRWLILFDWLRQVEHIRUHFODVVEHJLQV
JRRGDUJXPHQWIRURQO\VKRZLQJWKHEHJLQQLQJSRUWLRQRUDWHDVHU WRKHOSPDNHVXUHWKDWVWXGHQWVDUHQHYHUWDUG\RUPLVVFODVV,UHFHQWO\
KDGWKHRSSRUWXQLW\WRDVNWKHIRXQGHU&KDG$KDURQDIHZTXHVWLRQV
2QRQHKDQGSHRSOHVXEVFULEHWR566IHHGVWRFRQYHQLHQWO\UHDG DERXWWKHEXVLQHVV
PDWHULDORIIVLWH6RZK\ZRXOGZHZDQWWRPDNHWKLQJVLQFRQYHQLHQWE\
KDYLQJWKHPFRPHEDFNWRWKHEORJWRILQLVKWKHSRVW" :KDWLV&ODVV7H[WV"
2QWKHRWKHUKDQGLW¶VHYLGHQWWKDWE\VKRZLQJWKHIXOO566IHHGZH¶UH &ODVV7H[WVGHOLYHUVWH[WQRWLILFDWLRQVEHIRUHFODVVEHJLQVPDNLQJVXUH
QRWPD[LPL]LQJWKHDPRXQWRIWUDIILFRQRXUVLWHVEHFDXVHWKH VWXGHQWVDUHQHYHUWDUG\RUPLVVFODVV6WXGHQWVKDYHPDQ\RSWLRQVZKHQ
VXEVFULEHUVKDYHDOORIWKHFRQWHQWWKH\QHHGRIIVLWH3OXVGRQ¶WZHZDQW WRUHFHLYHWKHLUWH[WQRWLILFDWLRQV7KH\FDQEHVHQWRXWDQG
RXUUHDGHUVWRHQJDJHLQWKHFRPPHQWVHFWLRQDQGSRVVLEO\FOLFNRQRWKHU PLQXWHVEHIRUHFODVV6RPHVWXGHQWVVHOHFWRQHRUWZRRIWKHWLPHVZKHUH
WKLQJVRQRXUVLWHWRVWD\RQLWDVORQJDVSRVVLEOH" PRVWRIRXUVWXGHQWVVHOHFWDOOIRXU&ODVV7H[WVDOVRKDVDQ(YHQW
5HPLQGHUZKHUHVWXGHQWVFDQUHFHLYHQRWLILFDWLRQVIRULPSRUWDQWHYHQWV

VXFKDVTXL]]HVUHVHDUFKSDSHUVVWXG\JURXSVODEVIOLJKWKRPHVHWF
:LWK&ODVV7H[WV\RXZLOOQHYHUKDYHWRZRUNDERXWEHLQJODWHRUPLVVLQJ %/2*0$9(5,&.
DQRWKHUFODVVRUDSSRLQWPHQWDJDLQ
PDUNFXEDQ
&DQ\RXWHOOPHDOLWWOHDERXW\RXUVHOI"<RXUEDFNJURXQG" -8/30
0\QDPHLV&KDG$KDURQIRXQGHUDQGSUHVLGHQWRI&ODVV7H[WV,ZDV ,KDYHQRLGHD7RKLVFUHGLWWKLVKDVEHHQWKHEHVWNHSWVHFUHWVLQFHWKH
ERUQDQGUDLVHGLQ4XHHQV1HZ<RUNRQHRIWKHILYHERURXJKVRI1HZ IRUPXODIRU&RFD&ROD7DONLQJWRRZQHUV*0SOD\HUVIULHQGVRI
<RUN&LW\,UHFHLYHGP\EDFKHORUVGHJUHHIURPWKH6WDWH8QLYHUVLW\RI /HEURQV¶QRRQHNQRZV
1HZ<RUNDW3ODWWVEXUJKLQVHFRQGDU\HGXFDWLRQDQGUHFHLYHGP\
PDVWHUVGHJUHHIURP*UDQG&DQ\RQ8QLYHUVLW\LQFXUULFXOXPDQG 6ROHWPH\RXJLYH\RXP\JXHVV
LQVWUXFWLRQ%HVLGHVVWDUWLQJXS&ODVV7H[WV,DPDWKJUDGH:RUOG
+LVWRU\WHDFKHULQ'XUKDP3XEOLF6FKRROVLQ1RUWK&DUROLQD$OWKRXJK 7KLVDIWHUQRRQ,KHDUGWKDWD35ILUPZDVWHOOLQJVRPHPHGLDRXWOHWVWKDW
HGXFDWLRQLVP\SDVVLRQ,KDYHDOZD\VEHHQLQWHUHVWHGLQWKHEXVLQHVV /HEURQZDVJRLQJWRWKH+HDWEXWWKH\FRXOGRQO\EHDQRIIWKHUHFRUG
DVSHFWHVSHFLDOO\JURZLQJXSLQWKHFLW\DQGKDYLQJIULHQGVDQGIDPLO\LQ VRXUFH:KHQ,SXWP\35DQG0HGLDKDWRQWKDWDSSURDFKPDGHQR
WKHEXVLQHVVZRUOG VHQVHDWDOO:K\ZRXOGD35ILUPWHOOWKHPWKHSODQDQGUXLQWKHLPSDFW
RIDKRXUWYVSHFLDO"
:KHUH¶G\RXJHWWKHLGHD"
7KH\ZRXOGLILWZDVDPLVGLUHFWLRQ
$VDKLJKVFKRROWHDFKHU,NHHSJUHDWUHODWLRQVKLSVZLWKVWXGHQWVZKR
JUDGXDWH7KH\RIWHQNHHSLQWRXFKZLWKPHYLDHPDLORU)DFHERRN2QH +HUHLVKRZ,VHHLW$JDLQZLWKP\PHGLDDQG35KDWRQ
GD\,KDGDEXQFKRIVWXGHQWVYLVLWPHDIWHUWKHLUIUHVKPHQ\HDURI
FROOHJH$VZHZHUHWDONLQJ,DVNHGWKHPDOOZKDWWKHKDUGHVWSDUWRI /HEURQVWHSVXSWRWKHSRGLXP,QHYHU\KRPHEDUUHVWDXUDQWDQGHYHQW
FROOHJHZDVDQGWKH\DOOUHSOLHGWLPHPDQDJHPHQW2QHRIWKHPZKR LQWKH6WDWHRI2KLR(9(5<7+,1*FRPHVWRDFRPSOHWHVWRS'RFWRUV
ZDQWHGWRJRLQWRODZZDVWDNLQJDSROLWLFDOVFLHQFHFODVVDQGKDGD SUREDEO\SXWDKDOWWRWKHVXUJHULHVWKH\DUHGRLQJMXVWWRKHDUZKDWKH
SDSHUGXHDWWKHEHJLQQLQJRIFODVV+HH[SODLQHGKRZKHZDVDWWKH KDVWRVD\
OLEUDU\GRLQJUHVHDUFKDQGORVWWUDFNRIWLPHDQGZDVILYHPLQXWHVODWHWR
FODVV+LVSURIHVVRUGLGQRWDFFHSWLWDQGKLVJUDGHZHQWIURPDQ$WRDQ ,Q0LDPLSHRSOHNHHSRQGRLQJZKDWWKH\DUHGRLQJ7KH\ORRNDWWKHLU
),MRNHGDURXQGWHOOLQJKLP,ZRXOGVKRRWKLPDWH[WEHIRUHFODVVWR ZDWFKHVDQGQRWLFHLWVSDVWSPVRWKH\ORRNIRUD79RUUDGLRRUWXUQ
PDNHVXUHKHZRXOGQ¶WEHODWHDJDLQ7KHQWKHLGHDKLWDQG,H[SODLQHGLW RQWKHLUSKRQHVDQGFDOORUWH[WWKHLUIULHQGVWRVHHZKDWKDSSHQHGZLWK
WRDIHZFROOHJHVWXGHQWVZKRZHUHDOORQERDUGULJKWDZD\ OHEURQ7KHQWKH\JREDFNWRZKDWWKH\ZHUHGRLQJ
:KDWZDVWKHSURFHVVIRUEXLOGLQJDEXVLQHVVDURXQG606" $WWKHWLPHRIWKHDQQRXQFHPHQWWKHHQWLUHVWDWHRI2KLRLVKROGLQJ
WKHLUFROOHFWLYHEUHDWK:DLWLQJ+DWLQJ(631IRUGUDJJLQJLWRXW
$IWHUGRLQJPXFKUHVHDUFKP\SURJUDPZULWHUVP\VDOHVWHDPDQG, 7KUHDWHQLQJWRNLOOWKHPVHOYHVLI6WXDUW6FRWWRIIHUVHYHQDVLQJOH%RR\DK
UHDOL]HGWH[WLQJZDVUHSODFLQJHPDLOVDQGSKRQHFDOOVLQPDQ\ZD\V, :RQGHULQJZK\0LFKDHO:LOERQFDQWJHWULJKWWRLWUDWKHUWKDQWDONLQJ
KDGDVWXGHQWLQVFKRROWHOOPHVKHVKHRQO\KDGPLQXWHVDPRQWKRI RYHUZD\WRRPDQ\/%-KLJKOLJKWV)HHOLQJOLNHLWVEHHQDQHWHUQLW\VLQFH
PLQXWHVWRWDON,WKRXJKWWKDWZDVYHU\ORZDQGPDGHWKDWFRPPHQW WKHVKRZVWDUWHG
6KHWROGPHVKHEDUHO\HYHQXVHGRIWKHPLQXWHVDQGH[SODLQHGKRZ
PDQ\VWXGHQWVZRXOGUDWKHUWH[WWKDQWDON6KHHYHQPDGHWKHFRPPHQW 7KHQWKHDQQRXQFHPHQWFRPHV
WKDWWDONLQJLVVRPHZKDWDZNZDUGQRZ6RZHWKRXJKWVHQGLQJWH[W
PHVVDJHVZRXOGEHDJUHDWZD\WRVHQGUHPLQGHUVWRVWXGHQWV2XU ,I/HEURQDQQRXQFHV0LDPLDOOWKHVSRUWVPHGLDZKRUHSRUWHGWKHVDPH
SURJUDPPHUVUHVHDUFKHGLWVHWXSUHODWLRQVKLSVZLWKWKHSKRQH JHWWRZULWH³LWROG\RXVR´7KHSHRSOHLQ0LDPLVPLOH0D\EHVRPHKDYH
FRPSDQLHVDQGVHUYHUVDQG&ODVV7H[WVZDVERUQ DFXEDOLEUHDQGJRDERXWWKHLUEXVLQHVV7KHSKRQHVULQJDQGWKH+HDW
VHOODEXQFKRIWLFNHWV3DW5LOH\EX\VVRPHKDLUJHO(ULN6SROHVWUD
+RZPXFKGRHV\RXUVHUYLFHFRVW" VWUHVVHVDERXWZKDWKDSSHQVLIWKH\GRQWZLQWKLV\HDU(YHU\RQHVWDUWV
WHOOLQJOLHVDERXWKRZVXFKDQGVXFKSOD\HUZRXOGORYHWRSOD\IRUWKH
)RUWKH\HDU&ODVV7H[WVLVIUHH:HIHHOEHIRUHZHVHWXS PLQLPXPVDODU\WRSOD\ZLWKWKH*ROGHQ7ULDQJOH
RXUVHUYLFHZHZDQWWRRIIHULWIRUIUHHWRPDNHVXUHLWUXQVSHUIHFWO\:H
DUHRIIHULQJLWIRUHYHU\RQHFROOHJHVWXGHQWRUQRWIRUIUHHDVSDUWRIRXU ,QWKH6WDWHRI2KLR")RUJHWDEERXWLW3HRSOHFU\3HRSOHNLFNWKHLUGRJV
EHWDJURXS7RVLJQXSMXVWJRWRZZZFODVVWH[WVFRPDQGFOLFNVXEVFULEH 7KH\IDOOLQWRDIXQN/HEURQLQVWDQWO\EHFRPHVWKHPRVWKDWHGSHUVRQLQ
WKHVWDWHDQGHTXDOO\KDWHGE\DQ\RQHFORVHWRSHRSOHZKROLYHWKHUH
-XVWDVTXLFNO\$UW0RGHOOLVSODFHGRQSDUZLWK0RWKHU7KHUHVDZKHQ
FRPSDUHGWR/HEURQ/HEURQDQGKLVIDPLO\ZLOOPRVWOLNHO\KDYHPRUH

VHFXULW\FRQFHUQVWKDQLVLPDJLQDEOH+LVNLGVJRLQJWRVFKRRO"+HFNP\ 8VHD'URS6KLSSHU
\HDUROGKDVJRWWHQORRNVDQGFRPPHQWVZKHQWKH0DYVORVH«)RU
ZKDWLWVZRUWK,KHDUGVRPHZKHUHWKDW$UW0RGHOOLVVWLOODIUDLGWRVKRZ $GURSVKLSSHULVDFRPSDQ\WKDW\RXKLUHWRVKLSSURGXFWVGLUHFWO\WR
KLVIDFHLQWKHVWDWHDQG$UW0RGHOOQHYHUKDGWRIDFHWZLWWHUIDFHERRN FXVWRPHUV7KLVFRPSDQ\NHHSVDOOWKHLQYHQWRU\RQKDQGDQGKDQGOHV
DQGEORJJHUVVSHZLQJZRUOGZLGHKDWH WKHZKROHSURFHVVRIVKLSSLQJLWHPVWRFXVWRPHUV8VLQJDGURSVKLSSHU
FDQEHDJRRGZD\WRLQFUHDVH\RXUSURILWV)LUVWRIDOO\RXZLOOQRORQJHU
2QWKHIOLSVLGH,IKHVD\VKHLVJRLQJEDFNWRWKH&DYVWKHUHDUHSDUWLHV KDYHWRNHHSLQYHQWRU\RQKDQGVR\RXZLOOQRWKDYHWRUHQWRXWDIDFLOLW\
LQWKHVWUHHWVKRUQVKRQNLQJSHRSOHNLVVLQJVWUDQJHUV$UW0RGHOO WRVWRUHJRRGV$GURSVKLSSHUDOVRFDUULHVDZLGHYDULHW\RIJRRGV
VQHDNVLQWRWKHVWDWHDQGJHWVDNLVV(YHU\RQH¶VZLIHDQGKXVEDQG 7KHUHIRUH\RXDUHJLYHQWKHIOH[LELOLW\WRVHOODVPDQ\GLIIHUHQWLWHPVDV
ER\IULHQGDQGJLUOIULHQGDOOWKHVXGGHQEHFRPHSUHWWLHUWKDWQLJKW \RXZDQWZLWKRXWNHHSLQJLQYHQWRU\RQKDQG6HOOLQJPDQ\GLIIHUHQW
3HRSOHDUHSRXULQJRXWLQWKHVWUHHWDVLIDZDUKDGHQGHG,QVWHDGRIDQ SURGXFWVZLOOZLGHQ\RXUFXVWRPHUEDVH8VLQJDGURSVKLSSHUZLOODOVR
LQIDPRXVSLFWXUHRIDVDLORUNLVVLQJD\RXQJODG\WKHUHZLOOEHDSLFWXUH NHHSVKLSSLQJFRVWVGRZQ'URSVKLSSLQJFRPSDQLHVRIWHQFKDUJHORZ
RIDFRXSOHERWKLQ/HEURQ-DPHV&DYVMHUVH\VNLVVLQJLQWKHPLGGOHRI IHHVWRVKLSLWHPVWRFXVWRPHUV6KLSSLQJFRVWVFDQEHVXEVWDQWLDOO\
WKHVWUHHW$SKRWRSDVVHGWKURXJKWKHLQWHUQHWDVDPRPHQWRRID UHGXFHGE\XVLQJDGURSVKLSSHU
PRPHQWLQWLPHWKDWLQWKHELJSLFWXUHPHDQVQRWKLQJEXWIRUWRQLJKW
PHDQVHYHU\WKLQJ
<RXZLOOZDQWWRPDNHVXUHWKDWWKHDGV\RXSODFHRQH%D\DUH
:KLFKLVH[DFWO\ZK\,WKLQNKHLVJRLQJEDFNWRWKH&DYV7KHVSRUWV SURIHVVLRQDO7KLVLQFOXGHVPDNLQJVXUHLQIRUPDWLRQLVDFFXUDWHDQGWKDW
ZRUOGLVIXOORIXQFHUWDLQWLHV:KHQLQGRXEWJRIRUWKHORYH:KLFKLV WKHDGLVZULWWHQFRUUHFWO\8VHSURSHUJUDPPDUDQGPDNHVXUHZRUGV
DUHVSHOOHGFRUUHFWO\$SRRUO\ZULWWHQDGVHHPVXQSURIHVVLRQDODQGPD\
ZKDW\RXGRZKHQ\RXPDNHWKHPLVWDNHRIQRWFRPLQJWRWKH0DYV NHHSFHUWDLQSHRSOHIURPEX\LQJ\RXUSURGXFWV<RXZLOODOVRZDQWWR
PDNHVXUH\RXDUHSURYLGLQJTXDOLW\SKRWRJUDSKV3HRSOHDUHPRUHOLNHO\
WRSXUFKDVHSURGXFWVWKDWKDYHFOHDUDQGIRFXVHGGHVFULSWLRQVDQG
SLFWXUHV3HRSOHZDQWWRNQRZH[DFWO\ZKDWWKH\DUHEX\LQJ
%H5HOLDEOHDQG&RQVLVWHQW
:KHQWU\LQJWRPDNHDSURILWRQH%D\\RXZLOOQHHGWRKDYHVDWLVILHG
FXVWRPHUV<RXZLOOZDQWWRPDNHVXUHWKDW\RXDUHDUHOLDEOHVHOOHUDQG
WKDW\RXVKLSJRRGVRQWLPH$VNIDLUSULFHVDQGEHKRQHVWLQSURGXFW
GHVFULSWLRQV&RQVLVWHQWO\ZULWHFOHDUDGVWKDWDUHDFFXUDWHDQGWUXWKIXO
,I\RXKDYHGLVVDWLVILHGFXVWRPHUVWKH\ZLOORIWHQOHDYHQHJDWLYH
FRPPHQWV2WKHUFXVWRPHUVVHHWKHVHFRPPHQWVDQGPD\QRWEX\IURP
\RXLI\RXKDYHDSRRUFXVWRPHUVDWLVIDFWLRQUDWLQJ
%86,1(6623325781,7,(6:(%/2*
6HOO$9DULHW\RI3RSXODU,WHPV
+RZWR0DNHD7UXH3URILWRQ
<RXZLOOZDQWWRGR\RXUUHVHDUFKDQGVHOOLWHPVWKDWDUHSRSXODUZLWK
H%D\ H%D\FXVWRPHUV<RXFDQILQGRXWZKLFKLWHPVDUHVHOOLQJZHOOE\GRLQJD
-8/30 VHDUFKRQH%D\¶VKRPHSDJH.HHSLQPLQGWKDW\RXDOVRZDQWWRFKRRVH
LWHPVWKDWDUHQRWWRRFRPSHWLWLYH,IWKHUHDUHSHRSOHVHOOLQJWKH
7KHIROORZLQJLVDJXHVWSRVWIURP&RUU\&XPPLQJV VDPHLWHPLWZLOOEHKDUGWRDWWUDFWFXVWRPHUV<RXZLOODOVRZDQWWRVHOO
DYDULHW\RILWHPV'RQ¶WFRQFHQWUDWHRQVHOOLQJMXVWRQHLWHP<RXZLOO
QHHGWRVHOODYDULHW\RISRSXODULWHPVLQRUGHUWRPDNHDWUXHSURILW
6HOOLQJSURGXFWVRQH%D\LVDJRRGZD\IRUSHRSOHWRHDUQH[WUDPRQH\
+RZHYHUPDNLQJDODUJHSURILWVHOOLQJRQH%D\WDNHVDJUHDWGHDORIZRUN
DQGFRPPLWPHQW<RXFDQKHOSLQFUHDVH\RXUSURILWVE\XVLQJDGURS
VKLSSHUDQGVHOOLQJDYDULHW\RILWHPV<RXZLOODOVRZDQWWRPDNHVXUH
6HOOLQJSURGXFWVRQH%D\KDVEHFRPHDYHU\SRSXODUZD\IRUPLOOLRQVRI \RXSODFHSURIHVVLRQDODGVDQGVKLSLWHPVWRFXVWRPHUVRQWLPH
SHRSOHWRPDNHH[WUDPRQH\6RPHSHRSOHRQO\VHOODIHZLWHPVWRPDNHD
OLWWOHH[WUDFDVKZKLOHRWKHUSHRSOHPDNHDFDUHHURIVHOOLQJSURGXFWVRQ <RXFDQIROORZ&RUU\&XPPLQJVRQ7ZLWWHUDW
H%D\7KHUHDUHPDQ\GLIIHUHQWVWUDWHJLHVDQGWHFKQLTXHVSHRSOHXVH KWWSWZLWWHUFRPFRUU\FXPPLQJV
ZKHQWU\LQJWRPDNHDSURILWVHOOLQJRQH%D\7KHUHDUHDIHZWKLQJVWKDW
DOOVHOOHUVVKRXOGFRQVLGHULQRUGHUWRPDNHDWUXHSURILWRQH%D\

%86,1(6623325781,7,(6:(%/2*
<RXU7D['ROODUV$W:RUN²
6(7+¶6%/2*
7KHUH¶V$Q$SS)RU7KDW
8SGDWHV -8/30
-8/30
2YHUWKHODVWIHZPRQWKV,¶YHWULHGH[SHULPHQWLQJZLWKOHYHUDJHGZD\V
WRWHDFKDQGHQJDJHDQG,WKRXJKWLWZRXOGEHZRUWKGRLQJDUHFDS7KH
VKRUWYHUVLRQGLJLWDOWRROVPDNHLWHDVLHUWKDQHYHUWRFUHDWHHYHQWVDQG
H[SHULHQFHVWKDWZRUN²ZLWKRXWWKHULVN\VWDIILQJDQGWUDSSLQJVDQG
RYHUKHDGWKDWXVHGWREHUHTXLUHG
7+(52$'75,3,QWZRZHHNV,¶OOEHLQ'&IRUWKHVHFRQGLQDVHULHVRI
DOOGD\LQWHUDFWLYHHYHQWV0LQQHVRWDLVLQ$XJXVWDQG&KLFDJRLV
6HSWHPEHU<RXFDQVHHYLGHRDQGSKRWRVIURPWKHILUVWHYHQWLQ%RVWRQ
KHUH7KHUHDUHOHVVWKDQIXOOGD\VHDWVOHIWLQ'&DQGSHUKDSVVL[LQ
&KLFDJR7KHSHRSOH,PHWLQ%RVWRQZHUHDPD]LQJDQGWKHYROXQWHHUV
ZKRSLWFKHGLQPDGHWKHHYHQWVLQJ,WKLQN\RX¶OOHQMR\WKHLUSDJH7KH
MX[WDSRVLWLRQRIDODUJHJURXSLQWKHPRUQLQJDQGDPRUHLQWLPDWHJURXS
IRUWKHUHVWRIWKHGD\PDNHVLWLQWHUHVWLQJ
0((783,¶YHXSGDWHGWKHRULJLQDOSRVWZLWKDIHZSLFWXUHV0RUHDUH 7KH$SSOH$SS6WRUHWKH$QGURLG0DUNHWDQG%ODFN%HUU\¶V$SS:RUOG
KHUH6RPHRIWKHSHRSOHZKRDWWHQGHGJRWWRJHWKHUDQGLQGHSHQGHQWO\ KDYHDVXUSULVLQJQHZFRPSHWLWRU
FUHDWHGDVOLFNPDJD]LQH,ZDVKRQRUHGWRFRQWULEXWHDVKRUWHVVD\
7KH8QLWHG6WDWHVJRYHUQPHQW
7+(1$126RPHIHHGEDFNDQGOHDUQLQJVIURPWKHVKRUWIUHHRQHZHHN
0%$SURJUDP,UDQDIHZPRQWKVDJR1RWVXUHZKHQLWZLOOKDSSHQ $FFRUGLQJWRDVWRU\DW*DGJHWZLVHWKHJRYHUQPHQWDQQRXQFHGD0RELOH
DJDLQEXW,¶OOEHVXUHWRSRVWRQLWLILWGRHV $SSVVWRUHDW86$JRYIHDWXULQJIRXUQHZIUHHDSSVWRDFFRPSDQ\
RWKHUVWKDWWKHJRYHUQPHQWFUHDWHGZKLOHWKHPDUNHWSODFHZDV
%22.3$*(,W¶VEHHQXSGDWHG SUHVXPDEO\XQGHUGHYHORSPHQWLQVWHDOWKPRGH
,WKLQNZH¶YHRYHUORRNHGZKDWDVHDFKDQJHKDVRFFXUUHGLQMXVWDIHZ 7KHIRXUDSSVDUHVHDVRQDOO\LQVSLUHG7KH\LQFOXGH0\76$
\HDUVZKHQDQ\RQHZLWKDQLGHDFDQH[SRVHLWGLUHFWO\WRWKHUHVWRIWKH DQL3KRQHDSSWKDWRIIHUVDPRQJRWKHUWKLQJVXSGDWHVRQ
ZRUOG:KDWWKHVHHYHQWVKDYHLQFRPPRQLVWKDWWKH\ZRXOGKDYHEHHQ ZDLWWLPHVDWVHFXULW\FKHFNSRLQWVRIDLUSRUWV89,QGH[IRU
LPSRVVLEOHMXVWILYHRUWHQ\HDUVDJR7KHFRVWRIHQWU\LVORZHUDQGWKH %ODFN%HUU\VDQG$QGURLGSKRQHV3URGXFW5HFDOOVIRU
DFFHVVWRWKHPDUNHWLVJUHDWHU $QGURLGSKRQHVDQG0\)RRGD3HGLDZKLFKRIIHUV
QXWULWLRQLQIRUPDWLRQRQDERXWIRRGV
0\)RRG$3HGLDLVQ¶WVWULFWO\DQDSSVLQFHWKHLQIRUPDWLRQ
LVSUHVHQWHGLQDPRELOHIULHQGO\:HEVLWHEXWVLQFHLW¶VWKH
JRYHUQPHQWZHFDQJLYHLWFUHGLWIRUWU\LQJ
,QDQHZVUHOHDVH-HIIUH\=LHQWVWKH2IILFHRI0DQDJHPHQW
DQG%XGJHW¶VGHSXW\GLUHFWRUIRUPDQDJHPHQWDQG9LYHN
.XQGUDWKH2EDPDDGPLQVWUDWLRQ¶VFKLHILQIRUPDWLRQRIILFHU
GLGQRWVD\ZKLFKFDWHJRULHVRUVSHFLILFDSSVPLJKWFRPH
QH[WEXWJLYHQWKHVWRUH¶VFUHDWLRQXVHUVFDQH[SHFWPRUHIUHH
VRIWZDUH
3KRWRE\86$JRY

%86,1(6623325781,7,(6:(%/2*
%86,1(6623325781,7,(6:(%/2*
1LFKH%L]6SDUH)RRW
5HDSLQJ7KH%HQHILWV2I -8/30
(QWUHSUHQHXUVKLS
-8/30
&KXFN*RUGRQWKHQDQDUWVWXGHQWDW8&/$EDONHGDWWKHWKRXVDQGVRI
GROODUVKHZRXOGKDYHWRSD\WRVWRUHKLVEHORQJLQJVZKLOHVSHQGLQJD
-RVK/HVKHULVRQO\\HDUVROGUHSRUWV5HDGLQJ(DJOHFRPEXWKHKDV
VHPHVWHULQ6LQJDSRUHWZR\HDUVDJR
DOUHDG\ERXJKWDFRPELQHDQGODXQFKHGDEXVLQHVV
$FFRUGLQJWR%ORRPEHUJ%XVLQHVVZHHNKHHQGHGXSVWRZLQJKLVVWXIILQ
7DNLQJRXWDORDQRQKLVRZQ-RVKERXJKWDXVHGFRPELQHIRU
IULHQGV¶KRPHVDQGJDUDJHV
DQGQRZKDVVWDUWHGZRUNLQJRQFOHDULQJILHOGV
*RUGRQWKRXJKWSOHQW\RISHRSOHZLWKH[WUDVSDFHZRXOGUHQW
³7KLVLVDOOLQP\QDPH´VDLG-RVKDQ8SSHU7XOSHKRFNHQ
LWRXWLIWKH\FRXOGHDVLO\FRQQHFWZLWKUHQWHUV7KDWZDVWKH
7RZQVKLSUHVLGHQWZKRZLOOEHDVHQLRUDW+DPEXUJ+LJK
RULJLQDOSODQEHKLQGWKH:HEVLWHKHODXQFKHGZLWKKLV
6FKRRO³,JRWWKHORDQDQG,KDYHWRPDNHWKHSD\PHQWV´
FROOHJHURRPPDWH0DULR)HJKDOLLQ'HFHPEHUQRZ
FDOOHG6SDUH)RRW
-RVKZLOOXVHWKHFRPELQHWRFXWFURSVIRUIDUPHUVZKRGRQ¶W
KDYHHTXLSPHQWRIWKHLURZQ&KDUJLQJDERXWDQDFUH
:KHQWKH\IRXQGWKDWVWRUDJHFRPSDQLHVZHUHOLVWLQJWKHLU
-RVKSODQVWRKDUYHVWDERXWDFUHVLQQRUWKHUQ%HUNV
YDFDQWXQLWVDORQJVLGHLQGLYLGXDOVZLWKH[WUDFORVHWVSDFH
&RXQW\
WKH\UHIRFXVHGWKHVLWHRQGULYLQJFXVWRPHUVGLUHFWO\WR
SURIHVVLRQDOVWRUDJHILUPV
³,GLGQRWH[SHFWWRKDYHDFRPELQHDWWKLV\RXQJRIDQDJH´
KHVDLG³,¶PZRUULHG,PLJKWQRWKDYHHQRXJKFXVWRPHUVWR
*RUGRQVD\VUHYHQXHDWWKHIRXUSHUVRQFRPSDQ\KDV
PDNHP\SD\PHQWVEXW,¶PH[FLWHGWRR´
GRXEOHGHDFKPRQWKVLQFH6HSWHPEHUDQGQRZKDVPRUHWKDQ
OLVWLQJVIURPPRUHWKDQVWRUDJHFRPSDQLHV
7RREWDLQWKHILQDQFLQJ-RVKKDGWRSXWDEXGJHWWRJHWKHU
QDWLRQZLGH
DQGFRQWUDFWZLWKHQRXJKIDUPHUVWRPDNHWKHYHQWXUHYLDEOH
7KHVLWHZRUNVRQDQDXFWLRQV\VWHPLQZKLFKFRPSDQLHVELG
)URPQRZWKURXJK1RYHPEHU-RVKZLOOEHZRUNLQJWKH
IRUIDYRUDEOHSODFHPHQW:KHQFXVWRPHUVERRNDVWRUDJH
ILHOGVKRSLQJIRUWKHULJKWFRPELQDWLRQRIVXQDQGUDLQWR
XQLW6SDUH)RRWWDNHVDFXWRIKDOIWKHILUVWPRQWK¶VUHQW
PDNHWKHFURSVJURZDQGIRUGU\ZHDWKHUZKHQLW¶VWLPHWR
KDUYHVWWKHJUDLQV
,QGLYLGXDOVFDQVWLOOOLVWWKHLUVWRUDJHVSDFHEXWE\IRFXVLQJ
RQFRPSDQLHV³ZH¶UHDEOHWRJHWWKRXVDQGVRIWKRXVDQGVRI
³,¶OOEHSXWWLQJLQKRXUGD\VLIHYHU\WKLQJJRHVULJKW´KH
OLVWLQJVLQDPDWWHURIDFRXSOHPRQWKV´*RUGRQVD\V
VDLGRIXSFRPLQJZHHNV
3KRWRE\6SDUH)RRW
3KRWRE\0DUWLQ3HWWLWW

%86,1(6623325781,7,(6:(%/2*
%RRWLQJ8S)RU/RFDO6WDUWXSV
-8/30
%86,1(6623325781,7,(6:(%/2*
&DIH6HUYHV8S9HQWXUH&DSLWDO
:LWK7KH*UDQROD
-8/30
7D\ORU0LQJRVDQG$DURQ+RXJKWRQDUHZRUNLQJWRJHWKHUWRKHOS
'XUKDPVWDUWXSVJHWRIIWKHJURXQGWKURXJKWKHLUZHEVLWH'RZQWRZQ
'XUKDP6WDUWXSVUHSRUWV7KH+HUDOG6XQ
³0DQ\SHRSOHRXWVLGHWKHDUHDKDYHQRLGHDWKDWWKHUHDUHRQH
&DOOLWWKH%XFN¶V6LOLFRQ9DOOH\%DURPHWHU7KHHFRQRP\PD\EHZREEO\
RUWZRVWDUWXSVLQGRZQWRZQOHWDORQHWKHRUVRWKDWZH
DQGWKHPRRGRIWKHFRXQWU\DQ[LRXVEXWWKH:RRGVLGHFDIHLVKXPPLQJ
KDYH´0LQJRVVDLG³3HRSOHLQWKHORRSDUHH[FLWHGDERXWLW
DJDLQZLWKGHDOPDNLQJEUHDNIDVWVUHSRUWV7KH0HUFXU\1HZV
EXWRWKHUSHRSOHMXVWKDYHQRLGHD´
2QDUHFHQWPRUQLQJMXVWDERXWHYHU\RQHRIWKHFDIH¶V
7KHZHEVLWHEXLOGVRQWKHUHFHQWERRVWIRUHQWUHSUHQHXUVLQ
VHDWVZHUHRFFXSLHG²HYHQDWDP(QWUHSUHQHXUVVKDUHG
'XUKDP7KUHHDFFHOHUDWRULQFXEDWRUVKDYHDQQRXQFHGSODQV
ODSWRSSUHVHQWDWLRQVZLWKSRWHQWLDOIXQGHUVLQYHVWRUVZRUNHG
WRODXQFKLQ'XUKDPWKLV\HDULQFOXGLQJ-R\VWLFN/DEVD
VPDUWSKRQHVEHWZHHQELWHVDQGWDEOHWRWDEOHQHWZRUNLQJ
FDVXDOYLGHRJDPHLQFXEDWRUWKDWPDGHLWVGHEXWODVWZHHN
ZDVLQIXOOVZLQJDVVHUYHUVVZHUYHGDURXQGKDQGVKDNHVDQG
7KHFLW\FRXOGDOVRJDLQ'XUKDP&RZRUNLQJWKLV\HDUDODUJHU
FDUGH[FKDQJHVWRGHOLYHUERZOVRIJUDQRODDQG\RJXUWWKH
LQFDUQDWLRQRIWKHVKDUHGZRUNVSDFHQRQSURILW&DUUERUR
PHDORIFKRLFHIRUKLJKSRZHUHGHDWHUV
&UHDWLYH&RZRUNLQJ
³-XVWORRNDURXQGDWWKHVHSHRSOH´VDLGYHWHUDQYHQWXUH
+RXJKWRQVDLGWKDWZLWKLQGD\VRIWKHVRIWODXQFKWKHVLWH
FDSLWDOLVW%LOO'UDSHUDIWHUVOLGLQJLQWRDERRWKDQGRUGHULQJ
DOUHDG\DGGHGVHYHUDOVWDUWXSVWKDWKDGSUHYLRXVO\EHHQIO\LQJ
KLVUHJXODUEUHDNIDVW²JUDQRODDQGIUXLWZLWKFRIIHHDQG
XQGHUWKHUDGDU$Q\RQHFDQVXEPLWWKHLUFRPSDQ\WRWKH
RUDQJHMXLFH³1LQHW\SHUFHQWRIWKHPDUHGRLQJEXVLQHVV´
GLUHFWRU\E\ILOOLQJRXWDQRQOLQHIRUP
7KRXVDQGVRIFRPSDQLHVIURP+RWPDLOWR7HVOD0RWRUV
7KHZHEVLWHIHDWXUHVDGLUHFWRU\RIVWDUWXSVDQGLQFXEDWRUV
ZHUHODXQFKHGDURXQGWDEOHVDW%XFN¶V'HDOVDUHGRQHLQ
LQ'XUKDPDQGHOVHZKHUHLQWKH7ULDQJOH7KHGLUHFWRU\LV
WUDGLWLRQDOYDOOH\VW\OHE\VPDUWSHRSOHLQMHDQVDQGRSHQ
IRFXVLQJRQWHFKQRORJ\UHODWHGFRPSDQLHVDWWKHRXWVHWDQG
FROODUVLQDUHVWDXUDQWZKRVHVLOO\LQWHULRUUHIOHFWVWKHRIIEHDW
LQFOXGHV3RFNHWJHDUDPRELOHDSSOLFDWLRQVFRPSDQ\LQ
KXPRURILWVRZQHU
'XUKDP6FKRRO+RXVH)DVKLRQVDVRFLDOO\FRQVFLRXV
FROOHJLDWHDSSDUHOVFRPSDQ\ZLWKDQRQOLQHVWRUHDQG$UJ\OH
2ZQHU-DPLV0DF1LYHQWDNLQJDEUHDNIURPPLQJOLQJZLWK
6RFLDODQHZVRFLDOPHGLDVWDUWXS
FXVWRPHUVSXWLWWKLVZD\³:H¶YHJRWIRRGDQGZH¶YHJRW
PRQH\:KDWHOVHGR\RXQHHG"´
³,W¶VWRSXWGRZQWRZQRQWKHVWDUWXSVFHQH´+RXJKWRQVDLG
³,W¶VWREULQJYLVLELOLW\WRWKLVUHJLRQ,IVRPHRQHLQ%RVWRQ
3KRWRE\0HUFXU\1HZV
ZDQWHGWRNQRZZKDWNLQGRIVWDUWXSVDUHJRLQJRQLQ
'XUKDPWKH\FDQILQGWKDWRQWKLVZHEVLWH´
6FUHHQVKRWIURP'RZQWRZQ'XUKDP6WDUWXSV


-XO\
7RGD\·V7DEEORLG
6(7+¶6%/2* 62&,$/0(',$0$5.(7,1*
,W¶VQRWP\ELUWKGD\ 6RFLDO0HGLD3OD\ERRN
-8/$0 -8/30
1RWDQ\PRUH /DVWPRQWK-RH&KHUQRYWKHGLUHFWRURIFRQWHQWIRUPDUNHWLQJ
DXWRPDWLRQFRPSDQ\(ORTXDFRQWDFWHGPHZLWKVRPHPDWHULDOWRVKDUH
6RPHRI\RXPD\KDYHGLVFRYHUHGWKDWWRGD\LVVXSSRVHGWREHP\ ZLWK\RX$QGZKLOH,GRQ¶WDOZD\VDFFHSWXQVROLFLWHGPDWHULDOIRUWKLV
ELUWKGD\1RORQJHU,¶YHQHYHUUHDOO\OLNHGELUWKGD\KRRSODHVSHFLDOO\ VLWHWKHFRQWHQWZDVMXVWWKDWJRRG1RWWRPHQWLRQWKDW(ORTXDDFWXDOO\
PLQHVR,¶YHJLYHQP\ELUWKGD\WR6FRWWDQGWKHIRONVDW&KDULW\ZDWHU FKDOOHQJHGXVWRVWHDOLW
,I\RXJRWRWKHVSHFLDOSDJHWKH\FUHDWHGDQGEX\DZHOOIRUDYLOODJHWKDW :KDWWKH\VKDUHGZHUHWZRWKLQJVWKH&RQWHQW*ULGZKLFKWKH\FUHDWHG
GRHVQ¶WKDYHRQH\RXFDQVXSSO\FOHDQZDWHUWRWZRSHRSOHIRUWZHQW\ ZLWKWKHGHVLJQILUP-(667KH&RQWHQW*ULGLVDFRQWHQWPDUNHWLQJ
\HDUV,IMXVWDWKRXVDQGRIWKHUHDGHUVRIWKLVEORJGRLWZHFRXOGDOWHU IUDPHZRUNWKDWSORWVW\SHDQGFKDQQHODFURVVWZRGLPHQVLRQVZKR
WKHOLYHVRIWHQVRIWKRXVDQGVRISHRSOHIRUDJHQHUDWLRQDQGZHFRXOGGR VKRXOGFUHDWHLWDVLQJOHRZQHURUWKHHQWLUHVWDIIDQGKRZLWVKRXOGEH
LWLQMXVWRQHGD\,¶PQRWDVNLQJ\RXWRGRLWDVDIDYRUWRPHWKDWZRXOG GLVWULEXWHGIRUPD[LPXPLPSDFWRQWKHVDOHVIXQQHO$QGKHUHLWLV
EHVLOO\EXWDVDIDYRUWR\RX%HFDXVHLWIHHOVJRRGDQGEHFDXVHLVD
VFUHDPLQJEDUJDLQ²JRHVGLUHFWO\WRWKHZHOO]HURRYHUKHDG
,QJHQHUDO,WKLQNWUDGHLVEHWWHUWKDQDLGDQGFUHDWLQJVFDODEOH
LQYHVWPHQWVWKDWHQJDJHWKHGHYHORSLQJZRUOGLVWKHEHVWVKRUWFXWWR
EULQJXVDOORXWRISRYHUW\%XWZLWKRXWDVWDEOHLQIUDVWUXFWXUHQRQHRI
WKDWZRUNVDQGZDWHULVDNH\EXLOGLQJEORFNLQWKDWSODWIRUP7KHNH\LV
FUHDWLQJDGHSHQGDEOHORQJWHUPVXSSO\WKDWFRPPXQLWLHVFDQFRXQWRQ
DQG\RXFDQEHSDUWRIWKDW
,FDQ¶WWHOO\RXKRZUHOLHYHG,DPWREHGRQHZLWKP\ELUWKGD\0D\EH
FKDULW\GD\ZLOOFDWFKRQZLWKORWVRISHRSOHJLYLQJDZD\WKHLUELUWKGD\V
UHSODFLQJQRLVHPDNHUVDQGSRLQW\KDWV,I\RX¶YHJRWHLWKHUWKHQRLVH
PDNHUVRUWKHKDWVRUHYHQGLJLWDOELUWKGD\ZLVKHVVHQGWKHPWR6FRWW
QRWPH
+DSS\FKDULW\GD\
$QGWKDQNV
,QDGGLWLRQWRWKHJUDSKLFWKHUHZDVDOVRDGRFXPHQWLQFOXGHG/HWPH
MXVWVD\WKDWLI,KDGWKLVDYDLODEOHWRPHVRPHIRXU\HDUVDJRZKHQ,
VWDUWHGWKLVVLWH,ZRXOGKDYHEHHQPXFKVPDUWHUPXFKPRUHTXLFNO\
(ORTXD¶V6RFLDO0HGLD3OD\ERRNLVILOOHGZLWKH[DFWO\WKHNLQGRI
PDWHULDOWKDWZLOOEULQJ\RXDQG\RXUHPSOR\HHVXSWRVSHHGRQVRFLDO
PHGLD$V(ORTXDGHVFULEHVLW
7KHSODWIRUPSDJH(ORTXD6RFLDO0HGLD3OD\ERRNZDV
FUHDWHGDVDYHULWDEOH³KRZWR´JXLGHIRURXUVWDIIWRIROORZRQ
WKHVRFLDO:HE,W¶VIUDQNO\HYHU\WKLQJZHNQRZDERXWVRFLDO
PHGLDGLVWLOOHGLQWRRQHDZHVRPHO\GHVLJQHGGRFXPHQW1RZ
\RXFDQKDYHLW)RUIUHH

%86,1(6623325781,7,(6:(%/2*
,QWXLW6FRXWLQJ)RU6WDUWXS
<RX¶OOILQGXVHVDQGEHVWSUDFWLFHVIRUXVLQJEORJV)DFHERRN7ZLWWHU
/LQNHG,Q<RX7XEH)OLFNU:LNLSHGLD'HOLFLRXV*RRJOH%X]] 3DUWQHUV
)RXUVTXDUHDQG*RZDOODIRUPDUNHWLQJSXUSRVHV -8/30
6WHDOLW'RZQORDGLW6KDUHLWZLWKHYHU\RQH\RXNQRZ8VHLWDVDEHVW
SUDFWLFHVGRFXPHQWIRU\RXUWHDP%HFDXVHWKLVLVWKHVLQJOHEHVW
SOD\ERRNRILWVVRUW,¶YHVHHQ\HW:HOOGRQH(ORTXD
%86,1(6623325781,7,(6:(%/2*
7KH3HUIHFW&KULVWPDV*LIW« 9HQWXUH%HDWUHSRUWVWKDWVWDUWXSVZLWKEXVLQHVVDQGILQDQFLDOWRROV
VKRXOGFKHFNWKHLUFDOHQGDUIRU$XJ
-8/30
7KDW¶VZKHQ,QWXLWWKHPDNHURISRSXODUILQDQFLDOVRIWZDUH
7KH79+DWORRNVOLNHVRPHWKLQJRXWRID³61/´VNHWFKEXWLW¶VQRMRNH OLNH4XLFN%RRNVDQG4XLFNHQZLOOEHKROGLQJLWVVHFRQG
DQQXDO(QWUHSUHQHXU'D\ZKHUHLWLQYLWHVVWDUWXSVWRLWV
7KHFKHHV\$V6HHQRQ79DGIRUWKHKDW²HVVHQWLDOO\DEODFN 0RXQWDLQ9LHZ&DOLIFDPSXVWRPHHWZLWKH[HFXWLYHVDQG
FXUWDLQKDQJLQJIURPDEDVHEDOOFDSZLWKDOXGLFURXVO\ORQJELOO²KDV GLVFXVVEXVLQHVVSDUWQHUVKLSV
TXLFNO\EHFRPHWKHKRWQHZYLUDOYLGHRUHSRUWV7KH1HZ<RUN3RVW
7KHHYHQWZLOOLQFOXGHTXHVWLRQDQGDQVZHUVHVVLRQVZLWK
$FFRUGLQJWRLQYHQWRUDQGYLFHSUHVLGHQWRI6.0,QGXVWULHV*HRUJH ,QWXLWIRXQGHU6FRWW&RRN&KLHI7HFKQRORJ\2IILFHU7D\ORU
.RUSHU79+DWVZHUHVROGDWWKH&RQVXPHU(OHFWURQLFV6KRZLQ 6WDQVEXU\DQG³VSHHGGDWLQJ´VHVVLRQVZKHUHHQWUHSUHQHXUV
-DQXDU\ZKHUHWKHSURGXFWZDVILUVWLQWURGXFHG PHHWRQHRQRQHZLWKEXVLQHVVDQGGHYHORSPHQW
UHSUHVHQWDWLYHV
6LQFHWKHQ.RUSHUUHSRUWVWKDW³WKRXVDQGVEXWQRWKXQGUHGVRI
WKRXVDQGV´RIWKHKDWVKDYHEHHQVKLSSHGWRKDSS\FXVWRPHUV ,QWXLWGHVFULEHV(QWUHSUHQHXU'D\DVD³ILUVWGDWH´WKDWFRXOG
OHDGWRDORQJWHUPEXVLQHVVUHODWLRQVKLS9LFH3UHVLGHQWRI
7KH79+DWZRUNVZLWKL3KRQHVL3RGV'URLGVDQG)OR79V7KHGHYLFH 2SHQ,QQRYDWLRQ-DQ%RVFKVDLGWKHLGHDLVWRILQGFRPSDQLHV
JHWVSRSSHGLQWRDVSHFLDOSRFNHWDWWKHHQGRIWKHKDW¶VELOOZLWKD WKDWFRPSOHPHQW,QWXLWSURGXFWVZLWKRXWFRPSHWLQJZLWK
FXVWRPOHQVVOLGLQJLQWRSODFHWRPDJQLI\WKHLPDJHVIRUD³SHUVRQDO WKHPGLUHFWO\
WKHDWHU´HIIHFW
7KHDSSOLFDWLRQGHDGOLQHLV-XO\$SSO\KHUH
3KRWRE\,QWXLW

%86,1(6623325781,7,(6:(%/2* %86,1(6623325781,7,(6:(%/2*
'HVLJQLQJ$&RUQ0D]H (UDVLQJ<RXUVHOI)URP,QWHUQHW
-8/30
,V,PSRVVLEOH
-8/30
&KLFDJR7ULEXQH
$W6FRWW6NHOO\DOUHDG\KDVDQDWLRQDOUHSXWDWLRQLQKLV
ILHOG±FRUQ
,W¶VEHHQDOPRVWWZRGHFDGHVVLQFHPDLQVWUHDPXVHUVEHJDQWUHNNLQJLQWR
7KHUHFHQWFROOHJHJUDGXDWHKDVEHHQFUHDWLQJFRUQPD]HV WKHOLEUDU\VODVKSOD\JURXQGNQRZQDVWKH:RUOG:LGH:HE1RZ
VLQFHKHZDVDQHQWHUSULVLQJ\HDUROGZKRSHUVXDGHGKLV VHYHUDO\HDUVLQWRWKDWH[FXUVLRQPDQ\DUHWDNLQJDORQJKDUGORRNDWWKH
GDGWROHWKLPFXWDIHZSDWKVZLWKGHDGHQGVLQDFRUQILHOG WUDLOWKH\¶YHOHIWEHKLQG
RQWKHIDPLO\¶VDFUHIDUP+LVILUVWPD]HDWWUDFWHG
SD\LQJYLVLWRUV6XEVHTXHQWPD]HVJUHZPRUHHODERUDWHDQG 7KH6DQ)UDQFLVFR&KURQLFOHDVNHGLVLWHYHQSRVVLEOHWRH[LWWKH
HYHQWXDOO\VSURXWHGWKH,QWHUQHWEXVLQHVV&RUQ0D]HV ,QWHUQHW"
$PHULFDZKLOH6NHOO\VWLOOZDVLQKLJKVFKRRO
7KHVKRUWDQVZHULVQR
1RZLQKLVWKVXPPHURIWKHFRUQPD]HEXVLQHVV6NHOO\
GULYHVDURXQGWKHFRXQWU\LQDIRUPHUDPEXODQFHZLWKDEHG (YHU\WLPHZHJRRQOLQHWRVLJQXSIRUDQHZVHUYLFHEX\D7
IRUVOHHSLQJDQGDFRQWUDSWLRQKHULJJHGWRFXWGHVLJQV±DQ VKLUWXSGDWHRXUVRFLDOQHWZRUNVVHQGDQHPDLORUXVHD
ROGULGLQJODZQPRZHUZLWKDZRRGHQER[EROWHGLQIURQWWR VHDUFKHQJLQHZHOHDYHEHKLQGGDWD
KROGDODSWRSFRPSXWHUDQGD*36V\VWHP$VDWHOOLWHUHFHLYHU
DWWDFKHGWRWKHPRZHUSRNHVDERYHWKHFRUQKHOSLQJ6NHOO\ 'HWDLOVZHVKDUHWKURXJKRIIOLQHDFWLRQVOLNHILOOLQJRXWD
IROORZFRRUGLQDWHVRQKLVODSWRSZLWKDPD]LQJDFFXUDF\ FUHGLWFDUGDSSOLFDWLRQFDQDOVRVTXLUUHOWKHLUZD\LQWRWKH
,QWHUQHW
+HFDQPRZDQ\SLFWXUHLPDJLQDEOHLQNQHHKLJKFRUQIURP
D:LOG:HVWVFHQHWRDUHSOLFDRIWKH0D\IORZHU ,QIRUPDWLRQFROOHFWHGWKURXJKFRRNLHV±ELWVRIFRGHWKDW
UHPHPEHUDXVHU¶VLQWHUDFWLRQVZLWKD:HEVLWH±FDQEH
³7KHUHDUHWKUHHRUIRXURWKHUSHRSOHLQWKHZKROHFRXQWU\ VWLWFKHGWRJHWKHUWRFUHDWHDWKRURXJKSURILOH
ZKRKDYHWKHVDPHMREDVPH´VDLG6NHOO\ZKRDGPLWVKLV
FOLHQWVDUHVXUSULVHGE\KLVDJHZKHQWKH\PHHWKLP 7KHQWKHUH¶VLQIRUPDWLRQDERXWXVWKDWZDVEH\RQGRXU
FRQWUROHYHQEHIRUHWKH,QWHUQHW3XEOLFUHFRUGVRQ
3KRWRE\FK\QQD JRYHUQPHQW:HEVLWHVIRULQVWDQFHZRXOGEHQH[WWR
LPSRVVLEOHWRUHPRYH
3KRWRE\PRVHUVRUJ

%86,1(6623325781,7,(6:(%/2* %86,1(6623325781,7,(6:(%/2*
,QWHUFKDQJHDEOH=,3=6KRHV %RWWOHG%UHDVW0LON)RU6DOH
-8/30 -8/30
:KLOHPDQ\VWDUWXSFRPSDQLHVVWDUWORFDOO\DQGJURZLQWRLQWHUQDWLRQDO 0DLO2QOLQH
PDUNHWVDVPDOOVWDUWXSFRPSDQ\FDOOHG=,3=6KRHVGLGMXVWWKH
RSSRVLWH)DFLQJDWRXJK86HFRQRP\=,3=LPPHGLDWHO\IRFXVHGWKHLU 0DQ\PRWKHUVVWUXJJOHWRSURGXFHHQRXJKEUHDVWPLONWRIHHG
HQHUJ\DEURDGWRZLGHQWKHVDOHVDUHDIRUSURGXFWODXQFK DJURZLQJEDE\
7KLVWZRSURQJDSSURDFKKDVUHDOO\SURYHGWREHVXFFHVVIXODVWKHLU %XWZKHQ7RQL(EGRQJDYHELUWKVKHIRXQGKHUVHOIZLWKVR
XQLTXHLQWHUFKDQJHDEOHVKRHV\VWHPVDUHQRZVROGLQRYHUWZHQW\ILYH PXFKVKHGHFLGHGWRERWWOHLWXSDQGVHOOLWRQWKHLQWHUQHW
FRXQWULHVLQFOXGLQJWKH8QLWHG6WDWHV'XEDL%DKUDLQ%HLUXW-RUGDQ
6DXGL$UDELD%HOJLXP/X[HPERXUJ7KH1HWKHUODQGV&DQDGD0H[LFR 0LVV(EGRQJRWWKHLGHDZKHQDIULHQGODXJKHGWKDWVKHKDG
&RORPELD7KH3KLOLSSLQHV-DSDQ7XUNH\&\SUHVV,WDO\6SDLQ HQRXJKEUHDVWPLONWRRSHQKHURZQGDLU\
3RUWXJDO$QGRUUD8$(.XZDLW/HEDQRQ(J\SW6\ULD4DWDU6DXGL
$UDELD-RUGDQ7KH8QLWHG.LQJGRP&KLQD<HPHQDQG2PDQ $OWKRXJKLWZDVPHDQWDVDMRNH0LVV(EGRQWRRNWKHLGHDWR
KHDUW±DQGSXWKHUH[FHVVEUHDVWPLONXSIRUVDOHRQWKH
=,3=DUHWKHEUDLQFKLOGRI,UYLQH&DOLIEDVHGHQWUHSUHQHXU-HUU\6WHIDQL LQWHUQHW
ZKRKDGWKHFRQFHSWRIFUHDWLQJGLIIHUHQWORRNVDQGVW\OHVZLWKMXVWRQH
SDLURIVKRHV=,3=ZHQWWKURXJKDILYH\HDUUHVHDUFKDQGGHYHORSPHQW 7KUHHPRQWKVODWHUVKHKDVVROGRXQFHV±RURQHDQGD
SHULRGWRILQDOL]HWKHSURGXFWIRUODXQFK³,ZLVKLWZDVDVHDV\DVVLPSO\ KDOISLQWV
SXWWLQJD]LSSHURQDVKRHEXWLWZDVQ¶W´VD\V6WHIDQL
µ,KDYHQ¶WPDGHORDGVRIPRQH\EXW,LQWHQGWRFDUU\RQ
-RKQ6WHIDQL VHOOLQJLWXQWLOLWGULHVXS¶VKHVDLG
(YHU\RQHLVORRNLQJIRUVRPHWKLQJIUHVKIXQDQGXQLTXHWR $IWHUJLYLQJELUWKWREDE\'DYLG0LVV(EGRQVDLGVKHIRXQG
EULQJVRPHH[FLWHPHQWEDFNWRWKHVKRHPDUNHWDQG=,3=LV KHUVHOIZLWKVRPXFKEUHDVWPLONWKDWKHUEUHDVWVEHFDPH
LW KHDY\DQGSDLQIXO
7KHVKRHLVDFRPSOHWHO\RULJLQDOFRQFHSWZKHUHVKRHFRYHUVDQGVROHV 6KHVWDUWHGXVLQJDEUHDVWSXPSWRILOWHURIIWKHH[FHVVDQG
DUHLQWHUFKDQJHDEOHZLWKDSDWHQWHGHDV\WRXVH]LSSHUGHVLJQDQG VWRUHGLWLQWKHIUHH]HUEHIRUHSXWWLQJDQDGRQWKHZHEVLWH
WHFKQRORJ\=,3=FDQEHSXUFKDVHGDVVHSDUDWHSLHFHVLQVHYHUDOGLIIHUHQW *XPWUHHWRVHHLIDQ\RQHZDQWHGWREX\LW
VW\OHVSDWWHUQDQGFRORUVJLYLQJLQGLYLGXDOVWKHIUHHGRPWRGHVLJQWKH
VKRHWKH\ZDQWWRZHDUHDFKGD\=,3=ODXQFKOLQHLVFDOOHG&DOL&ODVVLF 0LVV(EVRQKDGH[SHFWHGWKDWPRWKHUVZKRFRXOGQRW
ZLWKDSULFHUDQJHRI± EUHDVWIHHGWKHPVHOYHVZRXOGEHWKHRQO\RQHVLQWHUHVWHG
%XWWRKHUVXUSULVHVKHKDVEHHQLQXQGDWHGZLWKHPDLOVIURP
PHQ
µ,WHQGQRWWRDVNWRRPDQ\TXHVWLRQVRUSU\LQWRSHRSOH¶V
SULYDWHOLYHV¶0LVV(EGRQDVLQJOHPRWKHUVDLG
µ$OOFRPPXQLFDWLRQSULRUWRWKHVDOHLVGRQHYLDHPDLO7KHQ,

PHHWWKHFXVWRPHULQSHUVRQWRKDQGRYHUWKHPLON %86,1(6623325781,7,(6:(%/2*
3KRWRE\$OHVVDQGUR3HULOOL 6PDOO,GHD%LJ%L]
-8/30
%86,1(6623325781,7,(6:(%/2*
1HZ$GYHUWLVHU7\SLQJ%XJ
9LUWXDO$VVLVWDQW6HUYLFHV
-8/30
6WXGHQWLQJHQXLW\DWILQGLQJMREVKDVFUHDWHGVRPHLQWHUHVWLQJ
HQWHUSULVHVWDSSLQJLQWRWKH+DPLOWRQPDUNHW
7KH+DPLOWRQ6SHFWDWRUUHSRUWVWKDWWKHVXFFHVVIXOORFDOFDQGLGDWHVRI
WKH2QWDULR6XPPHU&RPSDQ\SURJUDPKDYHEXVLQHVVHVUDQJLQJ
IURPRUJDQLFJDUOLFJURZLQJWRDXWLVPLQWHUYHQWLRQIRUSDUHQWV
:H¶UHKDSS\WRZHOFRPH7\SLQJ%XJ9LUWXDO$VVLVWDQW6HUYLFHVRQERDUG
DVQHZDGYHUWLVHU7KH\DUHSURPRWLQJWKHLUPHQWRULQJSURJUDP
5RELQ+DOOHWWD0F0DVWHU8QLYHUVLW\3K'ELRFKHPLVWU\
GHVLJQHGIRUQHZYLUWXDODVVLVWDQWV
VWXGHQWKDGDYHJHWDEOHJDUGHQODVW\HDUDWKLVVWXGHQW
KRXVLQJZKHQWKHLGHDVWUXFNWRJURZRUJDQLFJDUOLFDVD
7\SLQJ%XJ9LUWXDO$VVLVWDQW6HUYLFHVRIIHUVDPHQWRULQJ
EXVLQHVV
SURJUDPGHVLJQHGIRUQHZYLUWXDODVVLVWDQWV7KLVGD\
XQOLPLWHGSURJUDPLVRIIHUHGYLDHPDLODQGLVFRPSOHWHO\VHOI
³2QWDULRLPSRUWVDOPRVWSHUFHQWRILWVJDUOLF³:KDW\RX
SDFHG7KLVGRHVQ¶WPHDQWKDW\RXDUHRQ\RXURZQ7KLV
JHWLQJURFHU\VWRUHVFRPHVIURP&KLQDDQG$UJHQWLQD«
PHDQVWKDW\RXGHWHUPLQHZKDW\RXQHHGKHOSZLWK6RPDQ\
ZKLFKLVRQDERDWIRUDPRQWKEHIRUHLWJHWVKHUH´
RWKHUSURJUDPVPDNH\RXVWDUWDWDFHUWDLQSODFHRUOHDUQ
FHUWDLQVNLOOVWKDWPD\RUPD\QRWEHZKDW\RXDUHLQWHUHVWHG
,WGRHVQ¶WFRPSDUHZLWKIUHVKJDUOLFZKLFKKDV³ZD\PRUH
LQ7KLVSURJUDPLVGHVLJQHGWRGRRQHWKLQJ«KHOS\RXZLWK
WDVWH´+DOOHWWVD\V6RWKH\HDUROGIRUPHG6ROLGDJR
ZKDW\RXQHHGKHOSZLWKLQRUGHUIRU\RXWRPRYHIRUZDUG
)DUPVWRJURZKLJKTXDOLW\JDUOLFVRPHWKLQJKHKLPVHOI
1RWKLQJLVZRUVHWKDQEHLQJVWXFNRQRQHOLWWOHWDVNDQG\RX
DSSUHFLDWHV
FDQ¶WGRDQ\WKLQJHOVHXQWLO\RXFDQJHWWKDWWDVNGRQH+HUH
LVWKHVROXWLRQ$VPXFKDVLWVRXQGVOLNHDOLIHLQVXUDQFH
³,WKDVDORQJKLVWRU\,WKDVPHGLFLQDOYDOXHDQGDOPRVWHYHU\
FRPPHUFLDOIRUDVOLWWOHDVDGD\\RXFDQILQGWKHKHOS\RX
FXOWXUHLQWKHZRUOGXVHVJDUOLFDVSDUWRILWVFXLVLQH´+H
QHHGZKHQ\RXQHHGLW6LJQXSWRGD\DQGVHHKRZGD\VIRU
FKRVHWRJURZRUJDQLFEHFDXVH³,MXVWWKLQNLW¶VLPSRUWDQWWR
FDQEHWKHEHVWPRQH\\RXZLOOHYHUVSHQG
UHVSHFWWKH(DUWKDQGDOVRWKDWLI\RXDUHJRRGWR\RXUERG\
LW¶OOEHJRRGWR\RX´
%XWKLVJRDOLVWRVHOOWRDUHVWDXUDQWLQWHUHVWHGLQORFDOO\
JURZQIUHVKRUJDQLFJDUOLFWRVHDVRQLWVFXLVLQH
3KRWRE\7KH+DPLOWRQ6SHFWDWRU

%86,1(6623325781,7,(6:(%/2*
(FRQRPLF6OXPS6WLUV8S+RPH
*URZQ2SSRUWXQLW\
-8/30
/RV$QJHOHV7LPHV
)RU0DUOHQH%DUROL7XUDWLOLIHKDVEHFRPHDQREVHVVLRQZLWK
VXJDUDQGIUXLW
$IWHUZRUNLQJWZRGHFDGHVDVDSURMHFWPDQDJHUIRU%RHLQJ
&RVKHZDVODLGRIIGXULQJDURXQGRIUHFHVVLRQIXHOHG
FXWEDFNVLQ
³,KDGDOZD\VPDGHMDPVDQGMHOOLHVDVJLIWV´VDLG%DUROL
7XUDWLZKROLYHVLQ/DNH)RUHVWDQGODXQFKHGDOLQHRI
SUHVHUYHVXQGHUWKHEUDQGQDPH'D6ZHHW=SRW6KHVHOOVWKH
SURGXFWVRQOLQHVWRUHRQ(WV\FRPDQGDWDUHDIRRGIHVWLYDOV
DQGWUDGHVKRZV
³,ILJXUHGZK\QRWVWDUWPDNLQJWKHPDVDEXVLQHVV"´VKH
VDLG
:KLOHKRPHIRRGSUHVHUYDWLRQWKULYHVDVDFXOWLVKKREE\WKH
VORZHFRQRP\KDVKHOSHGODXQFKDFRWWDJHLQGXVWU\IRU
KRPHPDGHSUHVHUYHV%RXWLTXHEXVLQHVVHVVXFKDV%DUROL
7XUDWL¶VDUHXVLQJROGIDVKLRQHGPHWKRGVWRPDNHVPDOO
EDWFKMDPVMHOOLHVDQGRWKHUSUHVHUYHGIRRGV6WDUWXSFRVWV
FDQEHORZ7KHSURGXFWVKDYHDUHODWLYHO\ORQJVKHOIOLIH$QG
HYHQLQWRXJKWLPHVFRQVXPHUVVWLOOVHHNRXWFRPIRUWIRRGV
3KRWRE\HS6RVGH

-XO\
7RGD\·V7DEEORLG
'$01,:,6+,¶'7+28*+72)7+$7 6(7+¶6%/2*
.DUPD7R'R/LVWSDVVLWRQ 6RHDV\WRWDONDERXWOXQFK

-8/$0 -8/$0
$OZD\V« ,I\RXZDQWWRJHWWKLQJVPRYLQJDWDPHHWLQJRULQDQRQOLQHIRUXPVWDUW
GLVFXVVLQJZKDWWRRUGHUIRUOXQFK(YHQWKHPRVWUHWLFHQWDWWHQGHHKDV
EX\WKH&'IURPWKHVWUHHWPXVLFLDQ VRPHWKLQJWRFRQWULEXWH
JHWDGULQNIURPWKDWNLG¶VOHPRQDGHVWDQG 6DPHWKLQJZKHQ\RXVWDUWGLVFXVVLQJWKHORJRIRU\RXUQHZYHQWXUHRU
ZKDWWRFDOOWKHVXEFRPPLWWHHRQFRPPLWWHHV+DYH\RXQRWLFHGKRZ
JRWRWKHFKDULW\FDUZDVK PDQ\SHRSOHDUHZLOOLQJWRZHLJKLQRQUHGHFRUDWLQJ\RXURIILFH"
HQWHUWKHUDIIOH ,W¶VVRHDV\WRVSHDNXSRQWKHWKLQJVWKDWDUHWULYLDOGHIHQVLEOHPDWWHUV
RIWDVWH6RHDV\WRLPDJLQHWKDW\RX¶UHDYDOXDEOHFRQWULEXWRUEHFDXVH
JRWR\RXUIULHQG¶VSOD\FRQFHUW \RX¶UHZLOOLQJWRVKDUH\RXUSHUVRQDOWDVWHRQDPDWWHUWKDW¶VEH\RQG
UHSURDFK
EX\\RXUIULHQG¶VERRN
,I,ZDQW\RXURSLQLRQ,¶PJRLQJWRZDQWLWIRUVRPHWKLQJZKHUH\RX
EULQJDSRVVHWRGRDOORIWKHDERYH PLJKWEHZURQJIRUVRPHWKLQJWKDWDFWXDOO\PDNHVDGLIIHUHQFHDQGPRVW
RIDOOIRUVRPHWKLQJZKHUH\RXDUHSXWWLQJ\RXUVHOIDWULVN1RWOXQFK
:KDWHOVH"
6KDUH

-XO\
7RGD\·V7DEEORLG
%86,1(6623325781,7,(6:(%/2*
6XUYLYLQJWKH*UHDW5HFHVVLRQ
-8/$0
%86,1(6623325781,7,(6:(%/2*
5HDVRQV(QWUHSUHQHXUV$UH
7DNLQJ7KH3OXQJH
-8/$0
'U-HIIUH\5&RUQZDOORYHUDW7KH&KULVWLDQ6FLHQFH0RQLWRUKDVEHHQ
REVHUYLQJPRUHDQGPRUHEXVLQHVVRZQHUVZKRDOWKRXJKWKHLU
EXVLQHVVHVKDYHVXUYLYHGWKHHFRQRPLFGRZQWXUQVHHPWREHORVLQJ
KHDUW
7KHVWUHVVDQGVWUDLQFDXVHGE\WKHVHGLIILFXOWWLPHVKDVZRUQ
RQWKHP%XWGRLQJEXVLQHVVLQWRGD\¶VHFRQRP\UHTXLUHVD
VWHDG\KDQGDVKDUSH\HDQGPRVWRIDOO²DFDOPPLQG
7KHUHDUHIRXUVWHSVWKDWFDQEHWDNHQWRKHOSWRFRSHZLWKWKH
HPRWLRQDOWROORIEHLQJDQHQWUHSUHQHXULQGLIILFXOWWLPHV
:K\DUHHQWUHSUHQHXUVVWDUWLQJQHZEXVLQHVVHVLQUHFRUGQXPEHUV"7KH
)LUVWDGMXVW\RXUH[SHFWDWLRQV7KHJURZWKLQUHYHQXHVDQG
ILUVWFKDSWHURI&ODWH0DVN¶VQHZERRN&RQTXHUWKH&KDRVPDNHVWKH
SURILWVWKDW\RXH[SHULHQFHGGXULQJWKHJRRGWLPHVPD\QRW
FDVHZH¶UHLQDQ³(QWUHSUHQHXULDO5HYROXWLRQ´DQGLW¶VKDSSHQLQJGXHWR
UHWXUQIRUTXLWHVRPHWLPHLIHYHU
ILYHELJUHDVRQV
6HFRQGFHOHEUDWHHDFKVPDOOVWHSIRUZDUG6HWVKRUWWHUP
&RUSRUDWHGLVLOOXVLRQPHQW'RZQVL]LQJRXWVRXUFLQJ
UHDOLVWLFPLOHVWRQHVIRU\RXUEXVLQHVV
RYHUVHDVSHQVLRQVFDQGDOVDQGJHQHUDOFRUSRUDWH
LUUHVSRQVLELOLW\KDYHOHIWHPSOR\HHVGLVLOOXVLRQHGDQG
7KLUGIRFXVRQWKHWKLQJVWKDWUHDOO\PDWWHU7KHUHLVVR
HPELWWHUHG
PXFKPRUHWR\RXUOLIHWKDQ\RXUEXVLQHVV:RUNKDUGDW
EHLQJDJRRGVSRXVH6WULYHWREHFRPHDEHWWHUSDUHQW
$WHFKQRORJ\SRZHUVKLIW7KH,QWHUQHWKDVFKDQJHG
HYHU\WKLQJ<RXQRORQJHUQHHGDEULFNVDQGPRUWDUVKRSRQ
)LQDOO\OHWJRRIWKHWKLQJVRXWVLGH\RXUFRQWURO(YHQXQGHU
ZKLFKWRKDQJRXW\RXUVKLQJOH
WKHEHVWRIWLPHVHQWUHSUHQHXUVZKRKDYHEHHQZHOOWUDLQHG
LQZKDWLWWDNHVWRVWDUWDQGJURZDVXFFHVVIXOEXVLQHVVVWLOO
7KHSURPLVHRIRYHUQLJKWVXFFHVV$VDVSLULQJ
IDFHDERXWDSHUFHQWIDLOXUHUDWH)DLOXUHFRPHVIURPPDQ\
HQWUHSUHQHXUVORRNDURXQGWKH\VHHIULHQGVDFTXDLQWDQFHV
WKLQJVWKDW\RXFDQQRWSUHGLFWRUSODQIRU&DOOLWXQFHUWDLQW\
KLJKVFKRROULYDOVDQGHYHQSDVWOHVVVDYY\"FRZRUNHUV
FDOOLWULVNRUFDOOLWSODLQROGEDGOXFN
PDNLQJLWRQWKHLURZQ
3KRWRE\SKRWREXFNHW
$QH[SDQGLQJZRUNIRUFH6SHDNLQJRIWKRVHEDE\
ERRPHUVPDQ\RIWKHPDUHHQWHULQJWKHUDQNVRI

HQWUHSUHQHXUVKLS 817(03/$7(5
7KHUHFHVVLRQ7KLVLVDELJJLHWKDW¶VEHHQGULYLQJDORW 5RDG0DJLF7UDYHO(DV\E\
RIHQWUHSUHQHXULDODFWLYLW\RYHUWKHODVWFRXSOH\HDUV
2QO\3ODQQLQJWKH)LUVW'D\
3KRWRE\QRFDSWLRQQHHGHGFRP -8/$0
'$01,:,6+,¶'7+28*+72)7+$7
'R,UHDOO\ZDQWWRZHDUD
QHFNWLHZLWK\RXUORJR"
-8/$0
,I\RX¶YHEHHQWKLQNLQJDERXWWUDYHOLQJEXWILQGWKHORJLVWLFVMXVWWRR
RYHUZKHOPLQJ,¶OOJLYH\RXDOLWWOHKLQW-XVWZRUU\DERXWWKHILUVWGD\
'RQ¶WWKLQNDERXWGD\RUGD\RUHYHQGD\-XVWWKLQNDERXWGD\
7KDW¶VEHFDXVHGD\LVWKHKDUGHVWGD\RIWUDYHOLQJ
:KHQ\RXDUHKRPHDQGKDYHWKHGHVLUHWRWUDYHOEXWKDYHQ¶WWDNHQWKH
SOXQJH\RXIHHOOLNHJRLQJVRPHZKHUHRQDVKRUWWHUPYLVLWLVKDUGWKDW
GRLQJORQJWHUPWUDYHOPXVWEHLPSRVVLEOHZLWKDOOWKHSODQQLQJSDFNLQJ
ERRNLQJRIKRWHOVDQGIOLJKWV
%XWKHUH¶VWKHVHFUHWDOPRVWDOOWUDYHOHUVILJXUHRXWHYHQWXDOO\2QFH\RX
3UREDEO\QRW KDYHXSURRWHG\RXUVHOIDQGJRWWHQDZD\\RXUHDOL]HKRZHDV\WUDYHOLQJ
DFWXDOO\LV'LVWDQFHVWKDWRQFHVHHPHGKXJHWR\RXQRZDUHMXVWMDXQWV
%XW\RXVKRXOGKDYHRQHUHDG\LI,¶PWKDWRQHIDQDWLFFXVWRPHUZKRZLOO <RXVWDUWWRKDYHWKRXJKWVOLNH³:HOOLI,¶PIO\LQJIURP%HLMLQJWR1HZ
<RUN,PLJKWDVZHOOVWRSRIILQ1HZ=HDODQGIRUDPRQWKDVLW¶V
6XSSRUWWKHSDVVLRQRI\RXUWUXHIDQV SUDFWLFDOO\RQWKHZD\´
3ULQWLQJ)RU/HVVFRPJDYHPHWKLVWLH\HDUVDJR6WLOOKDYHLW1RZ,MXVW 7KHUH¶VDOVRDOLWWOHWKLQJFDOOHGURDGPDJLF(YHU\WUDYHOHUVWXPEOHV
EORJJHGLW XSRQLWHYHQWXDOO\6RPHWKLQJVVHHPGLIILFXOWRUHYHQLPSRVVLEOHZKHQ
\RXDUHORRNLQJDWWKHPRQDPDSRULQDWUDYHOERRN<HWJHW\RXUVHOI
WUDYHOLQJDQG\RXZLOOILQGWKDWVRPHKRZWKLQJVMXVWZRUNRXW
6KDUH
:KHQP\KXVEDQGDQG,WUDYHOHGDURXQGWKHZRUOGZHRQO\PDGHRQH
DGYDQFHGERRNLQJDQGWKDWZDVIRURXUILUVWIHZQLJKWVDWWKHVWDUWRIWKH
WULS:HNQHZZHZRXOGEHWLUHGQHUYRXVDQGHYHU\H[SHULHQFHZDVVR
QHZ2QFHZHJRWWRRXUILUVWVWRS1HZ=HDODQGZHIRXQGDJUHDWORFDO
KRVWHOJXLGHDQGXVHGWKDWIRURXUWLPHWKHUH:HIRXQGVRPHIDQWDVWLF
KRVWHOVWKDWZHUHQ¶WOLVWHGLQRXUJXLGHERRNWKDWZHZRXOGKDYHPLVVHG
RXWRQLIZHERRNHGDKHDG$IWHUWKDWZHQHYHUZRUULHGDQGRIWHQ
ERRNHGRXUURRPVE\DFWXDOO\JRLQJLQWRWKHKRVWHOLQWKHQH[WFLW\ZH
ZHUHDW

+HUHDUHVRPHDGGLWLRQDOEHQHILWVRIQRWSODQQLQJDKHDG 6(7+¶6%/2*
6DYH0RQH\ 7KHELJVRUW
-8/$0
:KHQ\RXSODQRQWKHJR\RXWHQGWRILQGEHWWHUGHDOV:KHQ\RXDUH
VLWWLQJRQ\RXUFRXFKLQ3RUWODQG2UHJRQILJXULQJRXWLILWLVEHWWHUWRIO\ .HYLQ.HOO\DUJXHVWKDWWKHPRVWLPSRUWDQWEUHDNWKURXJKLQWKHKLVWRU\
RUWDNHWKHWUDLQIURP6ZLW]HUODQGWR%HUOLQ\RXKDYHIHZRSWLRQV<RX RIPDQNLQGZDVWKHLQYHQWLRQRIODQJXDJH
FDQORRNXSIOLJKWVDQGWUDLQVFKHGXOHVRQWKHLQWHUQHWDQGPD\EHVSHQG
DWRQRIPRQH\ERRNLQJWKHPDKHDGRIWLPHRQ([SHGLDRU.D\DNRU %HIRUHODQJXDJHZHZHUHZLOGDQLPDOV$IWHUODQJXDJHKXPDQVDVD
DQRWKHUWUDYHOZHEVLWH%XWLI\RXZDLWXQWLO\RXDUHLQ6ZLW]HUODQG\RX VSHFLHVWRRNDKXJHOHDSIRUZDUG/DQJXDJHDOORZHGXVWRFRRUGLQDWHWR
PLJKWGLVFRYHULWLVDSRSXODUURXWHDQG±VXUSULVHWKHUH¶VDQRWKHU WHDFKDQGWROHDUQ
WUDYHOHUZLWKDFDUJRLQJWRWKHVDPHSODFHIRURQO\WKHSULFHRIJDV
7KHVHFRQGJUHDWEUHDNWKURXJKRQWKLVD[LVZDVZULWLQJ:ULWLQJLV
0RUH)UHHGRP ODQJXDJHVROLGLILHG:ULWLQJSHUPLWVODQJXDJHWRWUDYHOWKURXJKWLPHRU
RYHUGLVWDQFHV,WHQVXUHVWKDWLGHDVODVWPRUHWKDQRQHJHQHUDWLRQ
0\KXVEDQGDQG,UHFHQWO\ILJXUHGWKLVRQHWKHKDUGZD\:HVSHQW
ZHHNVWUDYHOLQJDURXQGVRXWKZHVWHUQ&KLQDULJKWEHIRUHWKHELJJHVW 1RZZH¶UHRQWKHFXVSRIWKHWKLUGEUHDNWKURXJKRQHWKDWLVSURYLQJWR
KROLGD\RIWKH\HDU&KLQHVH1HZ<HDU:HKDGKHDUGDERXWKRZPDQ\ EHDVSRZHUIXODVWKHRWKHUWZR$QGZH¶UHOLYLQJWKURXJKLWQRWUHDGLQJ
SHRSOHWUDYHOKXQGUHGVRIPLOOLRQVWKDWWLPHRI\HDUDQGKRZ DERXWLWKLVWRU\ERRNV
HYHU\WKLQJFDQJHWERRNHGXSZHHNVLQDGYDQFHVRZHSUHERRNHGDOORI
RXUKRVWHOV,WWXUQHGRXWWRUHDOO\KLQGHUXV :H¶YHWDNHQWKHVPDUWHVWDQGULFKHVWSHRSOHRQHDUWKKXQGUHGVRI
PLOOLRQVRIWKHPDQGSXWWKHPWRZRUNVRUWLQJDQGRUJDQL]LQJDQG
:HKDGEDVHGRXUSODQVRQZKDWZHWKRXJKWZHPLJKWWKLQNRIDSODFH SROLVKLQJGDWD
:HFDPHWRRXUDVVXPSWLRQVEDVHGRQRXU/RQHO\3ODQHW,IDSODFHKDGD
ORWRIDWWUDFWLRQVZHPLJKWVWD\IRUQLJKWVVPDOOHUSODFHVPD\EHMXVW :H¶UHVRUWLQJHYHU\WKLQJ1RWMXVWZKLFKYLGHRVDUHLPLWDWLRQVRIRWKHU
DQLJKWRUWZR:HSODQQHGWKLVIURPWKHFRPIRUWRIRXUEHGURRPDQG YLGHRVEXWLGHQWLI\LQJORFDOEUHDNWKURXJKVDQGVSUHDGLQJWKHPDURXQG
WKHUHDOLW\WXUQHGRXWPXFKGLIIHUHQW:HZDQWHGWRVWD\LQFHUWDLQSODFHV WKHZRUOGKLJKOLJKWLQJSUREOHPVRULQVLJKWVDQGOHYHUDJLQJWKHPDQG
HLWKHUPRUHRUOHVVQLJKWVWKHQZHRULJLQDOO\SODQQHGEXWWRGRVRPHDQW FRQQHFWLQJUHVRXUFHVWRHDFKRWKHULQZD\VWKDWFUHDWHPDVVLYHDPRXQWV
WKDWZHZRXOGKDYHWRFDOOHYHU\VLQJOHKRVWHODIWHUZDUGVDQGFKDQJHRXU RIOHYHUDJH
UHVHUYDWLRQV,WZDVMXVWWRRPXFKWURXEOHVRZHIHOWVWXFNDQGUHVHQWHG
FHUWDLQSODFHV 7KLQNDERXWDOOWKRVHIRONVFKHFNLQJWKHLU%ODFNEHUU\XSYRWLQJ'LJJ
DUWLFOHVUHWZHHWLQJOLQNVDQGFRQQHFWLQJSHRSOHWRLGHDVRQOLQH7KLQN
<RXQHYHUNQRZZKDW\RXDUHJRLQJWRILQGZKHQ\RXWUDYHODQGEHLQJ DERXWWKHKXPDQHQDEOHGILOWHULQJDJLDQWV\VWHPZRUNLQJZLWKRXW
RSHQDQGIOH[LEOHZLOOHQVXUHWKDW\RXKDYHDEHWWHUWLPH2IFRXUVHGXH REYLRXVFRPSHQVDWLRQ
FDUHPXVWEHWDNHQDURXQGPDMRUKROLGD\VZKHQSODQHVDQGWUDLQVWHQG
WRERRNXS$OVROLVWHQWR\RXUIHOORZWUDYHOHUV,IWKH\VD\VRPHZKHUHLV 5LJKWQRZWKHELJVRUWIRFXVHVRQILQGLQJFOHYHUYLUDOYLGHRVEXWLWZRQ¶W
SRSXODUDQGILOOVXSTXLFNWKHQERRNDKHDG'RQ¶WOHWWKHSODQQLQJ IRUORQJ7KHSRZHURIWKLVFRRUGLQDWLRQLVVRKXJHLWZRQ¶WVWRSZLWK
VWDJHVEHWRRPXFKRIDKLQGUDQFHDQGMXVWJHWRXWWKHUHDQGJR EXLOGLQJ:LNLSHGLDDQGWXUQLQJWKHIRXQGHURI&KDW5RXOHWWHLQWRD
PLOOLRQDLUH,QVWHDGWKHELJVRUWZLOOUHOHQWOHVVO\ILQGDQGFRQQHFWDQG
3KRWR&UHGLW VSUHDGLGHDVWKDWJHQHUDWHSURGXFWLYLW\DQGLPSDFW

6(7+¶6%/2* 7+(60$573$66,9(,1&20(%/2*
7KHELJVRUW 7KH3RZHURI6RFLDO3URRIDQG
-8/$0
3XWWLQJ<RXU5HDGHUV)LUVW
.HYLQ.HOO\DUJXHVWKDWWKHPRVWLPSRUWDQWEUHDNWKURXJKLQWKHKLVWRU\ -8/$0
RIPDQNLQGZDVWKHLQYHQWLRQRIODQJXDJH
%HIRUHODQJXDJHZHZHUHZLOGDQLPDOV$IWHUODQJXDJHKXPDQVDVD
VSHFLHVWRRNDKXJHOHDSIRUZDUG/DQJXDJHDOORZHGXVWRFRRUGLQDWHWR
WHDFKDQGWROHDUQ
7KHVHFRQGJUHDWEUHDNWKURXJKRQWKLVD[LVZDVZULWLQJ:ULWLQJLV
ODQJXDJHVROLGLILHG:ULWLQJSHUPLWVODQJXDJHWRWUDYHOWKURXJKWLPHRU
RYHUGLVWDQFHV,WHQVXUHVWKDWLGHDVODVWPRUHWKDQRQHJHQHUDWLRQ
1RZZH¶UHRQWKHFXVSRIWKHWKLUGEUHDNWKURXJKRQHWKDWLVSURYLQJWR
EHDVSRZHUIXODVWKHRWKHUWZR$QGZH¶UHOLYLQJWKURXJKLWQRWUHDGLQJ
DERXWLWKLVWRU\ERRNV
:H¶YHWDNHQWKHVPDUWHVWDQGULFKHVWSHRSOHRQHDUWKKXQGUHGVRI
PLOOLRQVRIWKHPDQGSXWWKHPWRZRUNVRUWLQJDQGRUJDQL]LQJDQG
SROLVKLQJGDWD
/DVWZHHN,SRVWHGDTXHVWLRQDVNLQJDOORI\RXZKHWKHU\RXSUHIHUDIXOO
SRVWRUDSDUWLDOSRVWLQ\RXU566IHHG
:H¶UHVRUWLQJHYHU\WKLQJ1RWMXVWZKLFKYLGHRVDUHLPLWDWLRQVRIRWKHU
YLGHRVEXWLGHQWLI\LQJORFDOEUHDNWKURXJKVDQGVSUHDGLQJWKHPDURXQG
7KHDUJXPHQWZDVWKDWDIXOOSRVWLVZKDWPRVWVXEVFULEHUVIDYRUEXW
WKHZRUOGKLJKOLJKWLQJSUREOHPVRULQVLJKWVDQGOHYHUDJLQJWKHPDQG
VKRZLQJDIXOOSRVWNHHSVSHRSOHRIIRI\RXUVLWH2QWKHRWKHUKDQG\RX
FRQQHFWLQJUHVRXUFHVWRHDFKRWKHULQZD\VWKDWFUHDWHPDVVLYHDPRXQWV
FRXOGJHWPRUHWUDIILFFRPLQJWR\RXUVLWHE\VKRZLQJDSDUWLDOSRVWRU
RIOHYHUDJH
³WHDVHUÉXWWKHQLWZRXOGGHIHDWWKHSXUSRVHRIKDYLQJDQ566IHHGLQ
WKHILUVWSODFH
7KLQNDERXWDOOWKRVHIRONVFKHFNLQJWKHLU%ODFNEHUU\XSYRWLQJ'LJJ
DUWLFOHVUHWZHHWLQJOLQNVDQGFRQQHFWLQJSHRSOHWRLGHDVRQOLQH7KLQN
7KHUHVSRQVHZDVDPD]LQJ,QIDFWPRUHWKDQLQGLYLGXDOSHRSOH
DERXWWKHKXPDQHQDEOHGILOWHULQJDJLDQWV\VWHPZRUNLQJZLWKRXW
FRPPHQWHGZLWKWKHLURSLQLRQ±DQGDOPRVWDOORIWKHPIDYRUHGµIXOO
REYLRXVFRPSHQVDWLRQ
SRVW¶
5LJKWQRZWKHELJVRUWIRFXVHVRQILQGLQJFOHYHUYLUDOYLGHRVEXWLWZRQ¶W
IRUORQJ7KHSRZHURIWKLVFRRUGLQDWLRQLVVRKXJHLWZRQ¶WVWRSZLWK $OWKRXJKZHFDQHDVLO\FRQFOXGHWKDWDIXOOSRVWLVWKHZD\WRJR,
ZDQWHGWRLOOXVWUDWHWZRSULQFLSOHVWKDWFDPHDERXWDVDUHVXOWRIDVNLQJ
EXLOGLQJ:LNLSHGLDDQGWXUQLQJWKHIRXQGHURI&KDW5RXOHWWHLQWRD
WKLVVLPSOHTXHVWLRQVRFLDOSURRIDQGSXWWLQJ\RXUUHDGHUVILUVW
PLOOLRQDLUH,QVWHDGWKHELJVRUWZLOOUHOHQWOHVVO\ILQGDQGFRQQHFWDQG
VSUHDGLGHDVWKDWJHQHUDWHSURGXFWLYLW\DQGLPSDFW
6RFLDO3URRI
6RFLDOSURRILVDSV\FKRORJLFDOSKHQRPHQRQWKDWRFFXUVZKHQSHRSOH¶V
GHFLVLRQVDUHLQIOXHQFHGE\PDNLQJWKHDVVXPSWLRQWKDWVXUURXQGLQJ
SHRSOHNQRZPRUHDERXWFHUWDLQVLWXDWLRQVWKDQ\RXGR
,QOD\PDQ¶VWHUPVJURXSVRISHRSOHKDYHLQIOXHQFHDQGWKHODUJHU
WKHJURXSWKHPRUHLQIOXHQFHWKH\KDYH
)RUH[DPSOHLI\RX¶UHDWWKHPDOODQG\RXVHHDKXJHFURZGRISHRSOH
KXGGOHGDURXQGDVWRUH\RX¶UHPRUHWKDQOLNHO\JRLQJWRFKHFNLWRXWRU
DWOHDVWDFNQRZOHGJHWKHFURZGRISHRSOHDQGZRQGHUZKDWWKHELJGHDO
LV
,GHFLGHGWRZULWHODVWZHHN¶VSRVWDERXWWKH566IHHGDVDQ³$VNWKH

5HDGHUÉHFDXVH,NQHZWKDWZKDW\RXDOOVDLGDVDZKROHZRXOGEHPRUH
SRZHUIXOWKDQDQ\WKLQJ,FRXOGVXJJHVWRUUHFRPPHQG7KHUHLVSURRILQ ±±±±±±±
WKHFRPPHQWVDERXWZKDWZRUNVDQGZKDWGRHVQ¶W $VDOZD\V,MXVWZDQWHGWRWKDQN\RXIRUVXEVFULELQJ7KLVEORJLVD
³7KHRQO\UHFRPPHQGDWLRQEHWWHUWKDQWKHRQHJLYHQE\VRPHERG\HOVH VXFFHVV
LVWKHRQHJLYHQE\DJURXSRIVRPHERG\HOVHV´
:HDOONQRZWKHSRZHURI³VRPHERG\HOVH¶VUHFRPPHQGDWLRQ´7KDW¶V WKHFRQYHUVDWLRQ
H[DFWO\ZK\SURGXFWVERWKRQOLQHDQGRIIKDYHWHVWLPRQLDOV,W¶VRQH
WKLQJIRUDFRPSDQ\WRVD\WKHLUSURGXFWLVJRRGEXWLW¶VEHFRPHVPRUH 7KDQN\RXVRPXFK
EHOLHYDEOHZKHQLW¶VVRPHERG\HOVHSURYLGLQJ\RXWKDWUHFRPPHQGDWLRQ
±HVSHFLDOO\ZKHQLW¶VDIULHQGDQGGRXEO\HVSHFLDOO\ZKHQLW¶VD 7KH3RZHURI6RFLDO3URRIDQG3XWWLQJ<RXU5HDGHUV)LUVW
JURXSRIIULHQGV
7KHFRPPHQWVHFWLRQRI\RXUEORJLVD3(5)(&7SODFHWRVKRZFDVHVRFLDO
SURRI,I\RXKDYHVRPHWKLQJ\RX¶GOLNHWRSURYHZK\QRWOHW\RXUUHDGHUV
GRLWIRU\RXDQGPDNHLWDPXFKPRUHSRZHUIXOVWDWHPHQW
,I\RXUHDGWKURXJKWKHFRPPHQWVVHFWLRQRIWKHSRVW\RX¶OODFWXDOO\
QRWLFHDIHZSHRSOHVD\WKH\ZLOOFKDQJHIURPDSDUWLDOWRDIXOOSRVW566
IHHG,W¶VQRWEHFDXVHRIDQ\WKLQJ,VDLG±,MXVWDVNHGDTXHVWLRQ
7KDW¶VWKHSRZHURIWKHPDVVHV
3XWWLQJ<RXU5HDGHUV)LUVW
7KHVHFRQGSULQFLSOHWKDWFDPHDERXWIURPODVWZHHN¶VSRVWGHDOVZLWK
WKHLGHDRIZKDWKDSSHQVZKHQ\RXSXW\RXUUHDGHUV¶EHVWLQWHUHVWVILUVW
$VRQHFRPPHQWHU'H[WHUIURP&DVK'RRGOHSXWLW
³>,QDIXOOSRVW566IHHG@,I\RXDUHZULWLQJHQJDJLQJ
FRQWHQWSRVLQJFRQWHQWLRXVDUJXPHQWVDVNLQJUHOHYDQW
TXHVWLRQVDQGSURYLGLQJDFDOOWRDFWLRQSHRSOHZLOOKHDG
RYHUWR\RXUEORJWRFRPSOHWHWKHWUDQVDFWLRQ«´
+HWKHQIROORZHGXSE\VD\LQJ
³«ZHNHHSVD\LQJWKDWZULWLQJDEORJLVDERXWJLYLQJ*LYLQJ
YDOXHWR\RXUUHDGHUV)RUFLQJDUHDGHUEDFNWR\RXUEORJ
PDNHVLWDERXW\RXDQGZKDW<28ZDQW´
,W¶VWUXH±SXWWLQJLQDSDUWLDOIHHGMXVWWRJHWFOLFNVDQGWUDIILFWR\RXU
EORJLVDVHOILVKWKLQJWRGRLQP\RSLQLRQ%XWWKHIDFWLVWKDW\RXFDQ
VWLOOJHWDVPXFKWUDIILFIURP\RXU566VXEVFULEHUVE\SURYLGLQJ\RXUIXOO
SRVW$FWXDOO\\RXFRXOGJHWPRUHWUDIILFLIOLNH'H[WHUVDLG\RX¶UH
HQJDJLQJ\RXUDXGLHQFHDVNLQJUHOHYDQWTXHVWLRQVDQGLQFOXGLQJSURSHU
FDOOVWRDFWLRQ
3XWWLQJP\UHDGHUV¶EHVWLQWHUHVWVILUVWLVVRPHWKLQJ,DOZD\VWU\WRGR
KHUHRQ63,DQGLWKDVDOZD\VFRPHEDFNDURXQGWRUHZDUGPHLQRQH
ZD\RUDQRWKHU
+HOSRWKHUVILUVWDQGWKH\¶OOEHKDSS\WRKHOS\RXRXWODWHU.DUPD«LW¶V
RXWWKHUH

-XO\
7RGD\·V7DEEORLG
%86,1(6623325781,7,(6:(%/2*
:LOO:RUN)RU)RRG
-8/$0
%86,1(6623325781,7,(6:(%/2*
$Qµ(YROY¶LQJ2SSRUWXQLW\,Q
:DWHU
-8/$0
7KHSHDFHRIDQRWKHUZLVHTXLHWVXPPHUZHHNHQGLVRIWHQPXGGOHGE\
WKHVRXQGRIODZQPRZHUVDQGOHDIEORZHUV135UHSRUWVWKDW,Q/RV
$QJHOHV¶EXVLQHVVGLVWULFWDQROGIDVKLRQHGPHWKRGRIJURXQGFRQWURO
SURYLGHVDQDOWHUQDWLYHVRXQGWUDFN²WKHPXQFKLQJRIJRDWV
,QDVWHHSKLOOVLGHFLW\SDUNRQ%XQNHU+LOOULJKWQH[WWRWKH
ZRUOG¶VVKRUWHVWUDLOZD\JRDWVDUHDERXWWREHGHSOR\HG
³2KP\JRVKWKH\¶UHVRFXWH´1DWH*LGGLQJVVD\VDVKH
PDNHVKLVZD\WRZRUNLQDQHDUE\VN\VFUDSHU
,WPLJKWFRPHRXWRIWKHWDSIRUIUHHEXWQRWHYHU\RQHLVKDSS\ZLWKWKH
7KHUHDUHEDE\JRDWVDQGPDPDJRDWVEXWWKH\¶UHDOOKXQJU\
WDVWHRIWKHZDWHUWKH\KDYHDWKRPH7KDWLVZK\VRPDQ\SHRSOHVSHQG
JRDWV7KLVQDWXUDOODQGVFDSLQJFUHZZDVWUXFNHGLQIURPD
PRQH\WREX\ERWWOHGZDWHU(YROYLVDQHZHQKDQFHGERWWOHGZDWHUWKDW
IDUPLQ6DQ'LHJR7KHLUDVVLJQPHQWPRZLQJGRZQWKH
UHFHQWO\FDPHRXWODVW\HDU7KHLUZDWHULVQ¶WOLNHRWKHUERWWOHGZDWHUV
XQUXO\JURZWKRIEUXVKRQWKHVHDFUHV
WKRXJK,WLVIRUWLILHGZLWKDXQLTXHIRUPXODWKDWRWKHUZDWHUVGRQRW
KDYHDFFHVVWR
7KH&RPPXQLW\5HGHYHORSPHQW$JHQF\RI/RV$QJHOHV
WKLQNVLW¶VVPDUW²QRWWRPHQWLRQHFRORJLFDO7KLVLVWKHWKLUG
(YROYLVQRWMXVWDZDWHUEXWLWLVDOVRDQRSSRUWXQLW\IRUWKHULJKW
\HDULQDURZWKHDJHQF\KDVKLUHGDKHUGWRWHQGWKLV
LQGLYLGXDO:HUHFHQWO\VSRNHZLWK-DPHV:LOFR[DQLQGHSHQGHQW
XQZLHOG\ODQG
GLVWULEXWRUZLWKWKHFRPSDQ\DERXWWKHSURGXFWDQGWKHLUEL]RS
7KHJRDWVEHORQJWR-RKQQ\*RQ]DOH]ZKRVD\VWKH\JHWDQ
7HOOXVDOLWWOHDERXW(YROY
XQGHVHUYHGEDGUDS³*RDWVDUHJUHDWVXUYLYDOLVWV´KHVD\V
³7KH\OHDUQWRVXUYLYHRQPHDJHUPHDQVVRSHRSOHWHQGWR
(YROYLVDQHZHQKDQFHGZDWHUEHYHUDJHWKDWKLWWKHPDUNHW
WKLQNRIWKHPDVGRLQJVRPHWKLQJGHVWUXFWLYH%XWWKHJRDWV
LQ2FWREHU$OWKRXJKLWORRNVOLNHDSUHPLXPVSULQJ
DOORZWKHQDWXUDOSODQWVWRWDNHKROGDQGSUHWW\PXFKGRDZD\
ZDWHULWLVDFWXDOO\PXFKPRUH:HOLNHWRVD\WKDWZDWHULV
ZLWKDOOWKHLQYDVLYHZHHGVDQGJUDVVHV´
MXVWWKHFDWDO\VWIRUWKHNH\LQJUHGLHQWZKLFKLVWKH$UFKDHD
$FWLYH)RUPXOD$UFKDHD$FWLYHGHVFULEHVWKHHQHUJ\
7KH\DOVRHQWHUWDLQWKRXVDQGVRISDVVHUVE\LQWKHSURFHVV
DGYDQFLQJEHQHILWVRIDSURSULHWDU\DOOQDWXUDOIRUPXODDQG
LQYROYHGPDQXIDFWXULQJSURFHVVGHYHORSHGE\+HDOWKR
3KRWRE\135
3URGXFWV//&2YHU\HDUVRIUHVHDUFKDQGGHYHORSPHQW

KDYHEHHQLQYHVWHGLQWKHIRUPXOD0RUHLQIRUPDWLRQDERXW FRQQHFWZLWKSHRSOH2XUSKLORVRSK\LV*LYH6KDUH(YROY,
$UFKDHD$FWLYHFDQEHIRXQGDWKWWSDUFKDHDDFWLYHFRP JLYHPXFKRIP\SHUVRQDOVXSSO\DZD\HYHU\PRQWKEHFDXVH
QRERG\ZDQWVWREX\VRPHWKLQJWKH\DUHQ¶WVXUHDERXW,
:KDWOHDG\RXWRWKLVFRPSDQ\":K\GLG\RXGHFLGHWRMRLQ" VKDUHP\RZQH[SHULHQFHVZLWKWKHSURGXFWDQGWKHQ,OHW
WKHPNQRZWKDWLW¶VDOVRDEXVLQHVVRSSRUWXQLW\IRUWKHP,
,ZDVLQWURGXFHGWRWKHFRPSDQ\WKURXJKDIULHQG,IROORZRQ WKLQNLW¶VDJUHDWZD\WREXLOGUHODWLRQVKLSV
7ZLWWHU+H¶VDF\FOLVWOLNHPHDQGGXULQJWKHSUHODXQFK
SKDVHRIWKHUROORXWKHZDVUHFUXLWLQJILHUFHO\+HSRLQWHGPH :KDWDUHWKHUHTXLUHPHQWV"
WRKLVSHUVRQDOVLWHDQGDOO,FDQVD\LV,ZDVVROGLPPHGLDWHO\
,¶YHEHHQLQYROYHGLQRWKHUQHWZRUNPDUNHWLQJRSSRUWXQLWLHV 7KHRQO\UHTXLUHPHQWWREHFRPHDQLQGHSHQGHQWGLVWULEXWRU
DQGWKLVRQHLQP\RSLQLRQLVVXSHULRUEHFDXVHRIWKHPDLQ LVLQSXUFKDVLQJWKHEXVLQHVVNLWZKLFKFRVWVWRUHJLVWHU,
SURGXFW7KHUH¶VQRWKLQJHOVHRQWKHPDUNHWOLNHLWEHFDXVHRI GRQ¶WNQRZRIDQ\RWKHUKRPHEDVHGEXVLQHVVWKDWFRVWVVR
WKHSDWHQWHGIRUPXOD,DOVRUHVHDUFKHGWKHIRXQGHUDQG OLWWOHWRVWDUWXS0\UHFRPPHQGDWLRQKRZHYHULVWKDWD
PDQDJHPHQWWHDPDQGWKH\DUHWRSQRWFKEXVLQHVVPHQ GLVWULEXWRUDOVRSXUFKDVHWKH3UHPLXPH&HQWHUIRUD
PRQWKZKLFKLVZKHUHRXUEDFNRIILFHLVORFDWHG$OOWKH
+RZORQJKDYH\RXEHHQZLWK(YROY" UHSRUWVDERXWOHDGV\RXUGRZQOLQH\RXUYROXPHDQG
FRPPLVVLRQVDUHLQ\RXUH&HQWHUVLWH,WDOVRKRXVHVDOOWKH
,VWDUWHGP\(YROYEXVLQHVVLQ6HSWHPEHUDQGWKH PDUNHWLQJPDWHULDO\RXPLJKWQHHGVXFKDVORJRVDQGSURGXFW
FRPSDQ\RIILFLDOO\ODXQFKHGLQ2FWREHU LPDJHV,W¶VUHDOO\DQDPD]LQJWRRO
+RZPDQ\KRXUVSHUZHHNZRXOG\RXVD\LVVSHQWRQ\RXU :KDWW\SHRISHUVRQLVPRVWOLNHO\WREHQHILWIURPWKLV"
EXVLQHVV"
,DVVXPH\RXDUHWDONLQJDERXWWKHSURGXFWLWVHOILQZKLFK
,ZRUNIXOOWLPHDVDZHEGHYHORSHUIRU:HOOV)DUJR%DQNEXW FDVH,FDQVD\DQ\RQHDQGHYHU\RQH:HDOOH[SHULHQFHWKLQJV
LQP\RIIKRXUVVSHQGLWRQEXLOGLQJP\(YROYEXVLQHVV GLIIHUHQWO\EXWZLWK(YROYWKHUHDUHPHDVXUDEOHHIIHFWV\RX
&XUUHQWO\,SXWLQDERXWKRXUVDZHHNZKLFKOHDYHVWLPH FDQWHVWZLWKD3XOVH2[LPHWHU<RXFDQDFWXDOO\VHHEORRG
IRUGLQQHUSOD\LQJZLWKWKHNLGVDQGVSHQGLQJWLPHZLWKP\ R[\JHQOHYHOVLQFUHDVHDIWHUFRQVXPLQJWKHSURGXFW,FDUU\D
VSRXVH VPDOOSXOVHR[GHYLFHZLWKPHZKHQ,VDPSOHWKHSURGXFWWR
RWKHUVVRWKH\FDQVHHWKHUHVXOWVULJKWDZD\
:KDWVHSDUDWHV(YROYIURPWKHFRPSHWLWLRQ"
$Q\DGYLFH\RX¶GOLNHWRRIIHUDQ\RQHFRQVLGHULQJWKLV
(YROYLVWUXO\DFDWHJRU\FUHDWRUSURGXFW6LQFHWKH$UFKDHD RSSRUWXQLW\"
$FWLYH)RUPXODLVSDWHQWHGDQGRZQHGE\WKHIRXQGHURI
(YROY+HDOWK//&WKHILUVWDQGPRVWQDWXUDOSURGXFWLWFRXOG %HUHDG\IRUDQDPD]LQJULGH7KLVFRPSDQ\LVWKHIDVWHVW
EHSXWLQZDVVSULQJZDWHU1RRWKHUFRPSHWLQJSURGXFWKDV JURZLQJQHWZRUNPDUNHWLQJEXVLQHVVLQ1RUWK$PHULFD:H
RUZLOOHYHUKDYHWKLVDPD]LQJIRUPXOD7KHIRXQGHUVNQHZ H[SDQGHGRSHUDWLRQVLQWR&DQDGDLQ0DUFKDQGWKLVPRQWK
WKHHQHUJ\GULQNDQGIUXLWGULQNPDUNHWVZRXOGEHILHUFH -XQHDUHWKHILUVWUHJLRQDOFRQIHUHQFHVKDSSHQLQJDURXQG
FRPSHWLWLRQVRLWZDVRQO\QDWXUDOWRNHHSWKLQJVZHOO WKHQDWLRQ,QIDFWWKH1HZ<RUNFRQIHUHQFHKDGVRPXFK
QDWXUDO,ORYHKDQGLQJDFROGERWWOHRI(YROYWRVRPHRQHDQG LQWHUHVWWKH\KDGWRPRYHWRDPXFKODUJHUYHQXHWKDQ
VHHLQJWKHLUVXUSULVHEHFDXVHLW¶VUHDOO\JUHDWZDWHUDQGWKH\ RULJLQDOO\SODQQHG0RVWQHZQHWZRUNPDUNHWHUVGRQ¶WUHDOO\
XVXDOO\H[SHULHQFHDELWRIDQHQHUJ\ERRVWPHQWDOFODULW\DQG XQGHUVWDQGWKLVLVDUHDOEXVLQHVV,WUHTXLUHVGHGLFDWLRQ
IRFXVDIWHUZDUG EHOLHILQWKHSURGXFWDQGHQRXJKWKLFNVNLQWRXQGHUVWDQG
WKDW\RX¶OOJHWPRUH³12´DQVZHUVWKDQ\RXZLOO³<HV´DQG
:RXOG\RXPLQGWHOOLQJXVDOLWWOHDERXWWKHLQGHSHQGHQW WKDWHYHU\RQHRIWKRVHUHMHFWLRQVMXVWJHWV\RXFORVHUWR
GLVWULEXWRURSSRUWXQLW\" ILQGLQJZKR\RXZDQWLQ\RXUEXVLQHVV$VZLWKDQ\EXVLQHVV
WKHUHLVDSHULRGRILQYHVWPHQWERWKLQWLPHDQGPRQH\DQGDW
$EVROXWHO\,I\RXDUHIDPLOLDUZLWKWKHGLUHFWVHOOLQJPRGHO ILUVWLWFDQVHHPOLNH\RXDUHMXVWVSHQGLQJPRQH\DQGJLYLQJ
RWKHUFRPSDQLHVXVH(YROYZRQ¶WVHHPPXFKGLIIHUHQW$VD SURGXFWDZD\ZLWKRXWDQ\UHVXOWVEXWZLWKSDWLHQFHDQGWLPH
GLVWULEXWRU\RXHDUQPRQH\RIFRXUVHVHOOLQJWKHSURGXFWEXW WKDWZLOOHYHQWXDOO\WXUQLQWRSURILWLI\RXSOXJLQWRWKHV\VWHP
\RXDOVREXLOGYROXPHZLWKDQ\RQHLQ\RXUGRZQOLQHZKLFK DQGWHDFKRWKHUVWRGRWKHVDPH5HSOLFDWLRQLVNH\WRVXFFHVV
FRQWULEXWHVWR\RXUERQXVHDUQLQJVEXWWKHIRFXVLVUHDOO\RQ LQWKLVLQGXVWU\
WKHSURGXFW:LWKRXWVHOOLQJWKHSURGXFW\RXUHDOO\DUHQ¶W
JRLQJWRPDNHPRQH\7KHJUHDWWKLQJDERXWWKLVLVLWUHDOO\ :KDWDUHVRPHOHVVRQV\RXUEXVLQHVVKDVWDXJKW\RX"
GRHVQ¶WPDWWHUZKHQRUKRZ\RXJHWLQYROYHGZLWK(YROY
EHFDXVH\RXUHDUQLQJSRWHQWLDOLVUHDOO\DERXWKRZ\RX 0DLQO\SDWLHQFH,W¶VHDV\WRIRUJHWWKDWVXFFHVVIXOEXVLQHVVHV

DUHQ¶WEXLOWRYHUQLJKWDQGWKHUHDUHJRLQJWREHWLPHVZKHQ '$01,:,6+,¶'7+28*+72)7+$7
\RXMXVWZDQWWRTXLWDQG\RXTXHVWLRQHYHU\GHFLVLRQ\RX
PDNH$OO,FDQVD\LVWKDW\RXMXVWKDYHWRNHHSSXVKLQJ 7KLVLVKRZ\RXZULWHJUHDWFRS\
IRUZDUG(YHU\IDLOXUHJHWV\RXFORVHUWRVXFFHVV,NQRZ -8/$0
ILUVWKDQG,¶YHZRUNHGIRUVHYHUDOFRPSDQLHVWKDWIDLOHGDQG
L¶YHKDGP\RZQEXVLQHVVHVIDLORYHUWKH\HDUVEXW\RXSLFN KWWSZZZZRRWFRP%ORJ9LHZ(QWU\DVS[",G
\RXUVHOIXSGXVW\RXUVHOIRIIDQGNHHSJRLQJ,I\RXDUHQ¶W
JURZLQJDQGPRYLQJIRUZDUG\RXDUHGHVWLQHGWRIDLO ,VWKHUHDVLQJOHSDJHRQ\RXUZHEVLWHUHDOO\ZRUWKUHDGLQJ"
$Q\JRDOV\RXKRSHWRDFFRPSOLVKRYHUWKHFRPLQJ\HDUV"
6KDUH
,W¶VDORQJZD\RIIEXW,ZDQWWREHDEOHWRVHQGP\NLGVWR
JRRGFROOHJHVEX\WKHKRXVHRIP\GUHDPV,GRQ¶WGULYHDFDU
VRLKDYHQRUHDOGHVLUHWREX\H[SHQVLYHFDUVDQGERDWVDQG,
WKLQNWKDWNHHSVPHUHDOLVWLFJURXQGHGDQGIRFXVHGRQ
VPDOOHUDWWDLQDEOHJRDOVWKDWDUHSDUWRIWKHELJJHUSLFWXUH,
DOVRSODQWREXLOGDVWURQJWHDPWKDWVKDUHVWKHVDPHGHVLUHV
DQGJRDOVWKDW,GR+HOSLQJRWKHUVDFKLHYHWKHLURZQJRDOVLV 817(03/$7(5
ZKDWWUXO\PDNHVDEXVLQHVVOLNHWKLVDVXFFHVV
*HWWLQJ<RXU0RQH\-XLFHV
)ORZLQJ
-8/$0
%86,1(6623325781,7,(6:(%/2*
%XLOG<RXU2ZQ*RRJOH$QGURLG
$SSV
-8/$0
7KHUHDUHVRPDQ\DSSVDYDLODEOHIRUVPDUWSKRQHVWKHVHGD\VLWPXVWEH
UHDOO\HDV\WRPDNHWKHPULJKW"
$FFRUGLQJWR86$72'$<XVXDOO\\RXQHHGWRKDYHVRPHVRUWRI
SURJUDPPLQJVNLOOV
%XWWKHIRONVDW*RRJOHKDYHFRPHXSZLWKDZD\IRUDQ\RQH
WRFUHDWHDSSVIRULWV$QGURLGPRELOHRSHUDWLQJV\VWHPZLWK
$SS,QYHQWRUDE\WKHQXPEHUVDSSEXLOGLQJZHEVLWH 0RVWSHRSOHVHHFUHDWLYLW\DVVRPHWKLQJFHQWHUHGRQWKHDUWV±ZKHWKHU
WKDW¶VGHVLJQZULWLQJGUDZLQJPXVLFRURWKHUHQGHDYRUV7KH\UDUHO\
$VZLWKPRVWQHZWKLQJVIURP*RRJOHWKHVLWHLVFORVHGWRWKH DSSO\LWWRWKHPRUHWHFKQLFDODVSHFWVRIWKHLUOLYHVOLNHPRQH\
JHQHUDOSXEOLFEXW*RRJOHLVWDNLQJDSSOLFDWLRQVIRU
LQYLWDWLRQVWRMRLQ³RYHUWKHFRPLQJZHHNV´ )RUZKDWHYHUUHDVRQPRQH\LVVHHQDV³VWDWLF´DVVRPHWKLQJWKDWKDVWR
EHOHDUQHGIURPRWKHUVRUDSSOLHGWKURXJKV\VWHPVUDWKHUWKDQILJXUHG
%HORZDIXQYLGHRIURP*RRJOHVKRZLQJKRZ\RXDQGWKHFDW RXWFUHDWLYHO\
FDQJHWWRZRUNPDNLQJDSSVMXVWE\RSHQLQJWKHSURJUDP
DQGFRQQHFWLQJ\RXU$QGURLGGHYLFHWRWKHFRPSXWHU ,GRQ¶WEHOLHYHFUHDWLYLW\KDVERXQGDULHVLILWGRHVWKH\DUHVHWRQO\E\
RXUEUDLQVLQRUGHUWRDYRLGWU\LQJWRUHLQYHQWWKHZKHHOZLWKHYHU\
PXQGDQHDFWLYLW\ZHGR%XWDOLWWOHFUHDWLYLW\FDQJRDORQJZD\ZLWK
PRQH\ZKHQDSSOLHGWKHULJKWZD\
:KHQ\RX¶UHPRQH\FUHDWLYH\RXFDQGRWKLQJVOLNH

&UHDWHDFXVWRP([FHOWHPSODWHWKDWSURMHFWV\RXUFKHFNLQJEDODQFH 6(7+¶6%/2*
DQGVKRZV\RXUQHWZRUWKRYHUWKHODVWZHHNV
7ZRNLQGVRIVFKRROLQJ
'HYLVHDVDYLQJVSODQWKDWWUDQVIHUVHYHU\WLPH\RXZDWFKD79 -8/$0
VKRZ7U\LW\RX¶OOZDWFKOHVV79DQGVDYHPRUH
7\SH<RXFDQWDNHDFODVVZKHUH\RXOHDUQWHFKQLTXHIDFWVDQG
'LVFRYHUWKDWFDOFXODWLQJDQGORRNLQJDWWKHGDLO\LQWHUHVWFRVWRI SURFHGXUHV
\RXUGHEWPDNHV\RXUHDOO\ZDQWWRSD\LWRIIWKDQNVWR%DNHUIRU
WKLVWLS 7\SH<RXFDQWDNHDFODVVZKHUH\RXOHDUQWRVHHOHDUQWROHDGDQG
OHDUQWRVROYHLQWHUHVWLQJSUREOHPV
)LJXUHRXWWKDWLQGLYLGXDO+6$EDVHGLQVXUDQFHLVDFWXDOO\DEHWWHU
GHDOIRU\RXWKDQ\RXUHPSORO\HU¶VJURXSSODQ 7KHILUVWW\SHRIWHDFKLQJLVQ¶WSDUWLFXODUO\GLIILFXOWWRGRDQGLW¶V
VRPHWKLQJPRVWRIXVDUHWUDLQHGWRDEVRUE7KHILUVWW\SHRIVFKRROLQJ
<HVLW¶VWUXHWKDWPRQH\LVJRYHUQHGE\FHUWDLQSULQFLSOHVVSHQGOHVV FDQHYHQEHDFFRPSOLVKHGZLWKVHOIGLVFLSOLQHDQGD'XPPLHVERRN7KH
WKDQ\RXHDUQHWF%XWHTXDOO\WUXHLVWKHUHDOLW\WKDWHYHU\RQH¶V ILUVWW\SHRIFODVVLVLPSRUWDQWEXWQRWVFDUFH
VLWXDWLRQLVXQLTXHO\WKHLUV7U\LQJWRDSSO\VRPHRQHHOVH¶VPRQH\
V\VWHPVRUSKLORVRSKLHVEOLQGO\FDQOHDGWRDORWRIIUXVWUDWLRQDQG 7KHVHFRQGNLQGRQWKHRWKHUKDQGLVZKHUHDOOUHDOVXFFHVVFRPHVIURP
GLVDSSRLQWPHQW ,W¶VUHDOO\WULFN\WRILQGDQGWUDLQSHRSOHWRGRWKLVVRUWRIWHDFKLQJDQG
DQ\WLPH\RXFDQILQGVRPHRILW\RXVKRXOGJUDELW
+HUHDUHDIHZLGHDVIRUERRVWLQJWKHPRQH\FUHDWLYLW\LQ\RXURZQOLIH
7KHVDGWKLQJLVWKDWZHRIWHQFRQIODWHWKHWZR:HWKLQNZH¶UHKLULQJ
6HWDVLGHUHJXODUWLPHZLWK\RXUPRQH\WKDWLVQ¶WSODQQHGIRUELOOV VRPHRQHWRGRWKHVHFRQGW\SHDRQFHLQDOLIHWLPHWHDFKHUVRPHRQH
RUEDODQFHV7DUJHWOLWWOHVHHQFRPSRQHQWVRI\RXUILQDQFLDO ZKRZLOOFKDQJHWKHRXWORRNRIVWHOODUVWXGHQWV%XWWKHQZHJLYHWKHP
SLFWXUH UXOHVDQGSURFHGXUHVDQGIHHGEDFNWKDWWXUQWKHPLQWRDW\SHWHDFKHU
7KLQNRIVRPHWKLQJWKDWEXJV\RXDERXW\RXUPRQH\V\VWHPV (YHQZRUVHZHRIWHQSD\DVLIZH¶UHJHWWLQJWKHVFDUFHDQGYDOXDEOHW\SH
VRPHWKLQJQRWTXLWHSHUIHFW%UDLQVWRUPYDULRXVZD\VWRLPSURYH WHDFKHUVEXWZHHQGXSKLULQJDQGPDQDJLQJW\SHWHDFKHUV
LW'RQ¶WDLPIRUSHUIHFWLRQEXWWU\WRPDNHLWVWHOODU
,VSHQGDORWRIWLPHLQFROOHJHVDQGRWKHUWHDFKLQJLQVWLWXWLRQV2YHUDQG
7KLQNDERXWWKHEDVLFDUHDVRIILQDQFHVSHQGLQJVDYLQJHDUQLQJ RYHU,VHHWKHVDPHWKLQJ²RUJDQL]DWLRQVWKDWKDYHSDLQWHGWKHPVHOYHV
HWF7KLQNDERXWPRUHVSHFLILFVXEDUHDV7DFNOHHDFKRQH LQWRDFRUQHUNHHSLQJWKHPVHOYHVEXV\EXWUHIXVLQJWRGRWKHGLIILFXOW
LQGHSHQGHQWO\±ZKDWFDQ\RXLPSURYH" ZRUNRIWHDFKLQJSHRSOHWRVHH7KHGHDQRIRQHFROOHJHZDVVRVWXFNLQ
KLVW\SHQHVVWKDWKHFRXOGQ¶WHYHQEULQJKLPVHOIWRSDUWLFLSDWHLQD
6HWDUWLILFLDOOLPLWV,W¶VRIWHQVDLGWKDWDFULVLVEUHHGV VHVVLRQUXQE\DJLIWHGW\SHWHDFKHU
FUHDWLYLW\±ZK\QRWFUHDWH\RXURZQ",PDJLQH\RXULQFRPHLVFXWLQ
KDOIRU\RXUEURWKHUFDOOVQHHGLQJ:KDW¶VWKHPRVW ,VWKHUHDQ\WKLQJPRUHLPSRUWDQWWR\RXDQG\RXURUJDQL]DWLRQRU\RXU
FUHDWLYHWKLQJ\RXFRXOGGRWRPDNHLWZRUN" NLGVRU\RXUWRZQWKDQILJXULQJRXWKRZWRREWDLQDQGVKDUHWKHZLVGRP
WKDWUHDOWHDFKLQJFDQGHOLYHU"
5HDGWDONDQGREVHUYH<RXFDQOHDUQDJUHDWGHDOIURPRWKHUVDQG
LWPLJKWVSDUNDIHZLGHDVRI\RXURZQ
<RXFDQ¶WVSHQG\RXUZKROHOLIHUHLQYHQWLQJWKHZKHHOEXWIURPWLPHWR
WLPHLWSD\VWRVWRSDQGUHFRQILJXUHKRZ\RXDSSURDFKWKLQJV,W¶OONHHS
\RXKRQHVW*RRGOXFN
3KRWRE\#ERHWWHU

62&,$/0(',$0$5.(7,1* 7RPMXVWOHWPHNQRZWKDWKLVILUPKDVUHFHQWO\GHYHORSHGWKH*OREDO
:HE,QGH[DVWRROWKDWDV7UHQGVWUHDPSXWVLW³SURYLGHVDQ\RQH
*OREDO:HE,QGH[ ZLWKWKHIUHHRIFKDUJHFKDQFHWRYLHZDQGSOD\ZLWKWKH
-8/30 *OREDO:HE,QGH[GDWDDQGPRUHLPSRUWDQWO\WRVWDUWGHYHORSLQJ
XQLTXHLQVLJKWVRQVRFLDOPHGLD´<RXPD\QHHGWRFOLFNWKURXJKWRWKH
VLWHGHSHQGLQJRQKRZWKHHPEHGEHORZUHQGHUVRQ\RXUPRQLWRU
7KHVHDUHUHDOGDWDDYDLODEOHIURP-DQXDU\2IFRXUVHWKLVLVRQO\
WKH³OLWHÝHUVLRQLI\RXZDQWWRNQRZPRUHSOHDVHFOLFNWKURXJKWRWKH
OLQNIRULQIRRQKRZWRJHWWKHIXOOVHWRIGDWD
,VWKLVXVHIXOWR\RX"'R\RXVHHDQ\WUHQGVRUVXUSULVHVLQWKHGDWDWKDW
DUHSDUWLFXODUO\UHOHYDQWWRKRZ\RXGREXVLQHVV"3OHDVHOHDYHDFRPPHQW
EHORZ
3KRWRFUHGLW%LOO*UDFH\)OLFNU
$URXQGWKHZRUOGVRFLDOPHGLDKDVWDNHQRII:KLOHWKLVLVDQH[FLWLQJ
WLPHIRUFRPSDQLHVIRUWKHJOREDOVRFLDOPHGLDH[HFXWLYHWKDWPHDQVD
ORWRIKHDGDFKHVDVZHWU\PDNHVHQVHRILWDOO %86,1(6623325781,7,(6:(%/2*
7KHJUDGXDODGRSWLRQSODWIRUPVWKDWGLIIHUE\UHJLRQDQGWKHGLIIHUHQFH $GYHUWLVLQJRQ,GOH6ORW
LQSHQHWUDWLRQRIPRELOHDQGEURDGEDQGFRQQHFWLRQVDOOPHDQWKDWWKHUH
DUHERXQGWREHGLVSDULWLHVLQKRZDQGZKHUHSHRSOHDURXQGWKHZRUOG 0DFKLQHV
FRQQHFWYLDWKHVRFLDOZHE -8/30
2QFHXSRQDWLPH8QLYHUVDO0F&DQQGLGDVHULHVFDOOHG7UDFNLQJWKH
,PSDFWRI6RFLDO0HGLDWKDWFRQVLVWHGRIIRXU³ZDYHV´RIWKHVWXG\<RX
FDQJUDEWKHPKHUH
:DYH0D\
:DYH0DUFK
:DYH-XO\
,IRXQGWKHVHYHU\XVHIXOUHIHUHQFHWRROVDVWKHZHEZDVHYROYLQJ,QIDFW
,XVHGWRXVHVRPHRIWKHJURZWKFKDUWVIURP:DYHV LQP\ /DV9HJDVEDVHG5HHO79KDVGHYHORSHGWHFKQRORJ\WKDWHQDEOHV
SUHVHQWDWLRQV%XW:DYHZDVQ¶WTXLWHDVLPSDFWIXODVWKHSUHYLRXVWZR FRPPHUFLDOVDQGRWKHUPDUNHWLQJPHVVDJHVWRDSSHDURQVORWPDFKLQH
DQGZHKDGWRZDLWDORWORQJHUIRULWWRDSSHDU YLGHRVFUHHQVZKLOHWKHPDFKLQHVDUHLGOH
$V,ZDVZRQGHULQJDERXWWKLVIDFW,KDSSHQHGWRJHWDQHPDLOIURP7RP 7KH/DV9HJDV6XQKDVPRUH
6PLWKZKRZDVWKHOHDGPDUNHWUHVHDUFKHUDW8QLYHUVDO0F&DQQZKROHG
WKHVHHIIRUWV,WWXUQVRXWKHOHIW80DIWHU:DYHZKLFKH[SODLQVWKH
JDSDQGWKHGLIIHUHQWIHHO7RPKDVFRQWLQXHGZLWKKLVILQHUHVHDUFKDQG
KDVKLVRZQFRPSDQ\7UHQGVWUHDPZKLFKLVGRLQJVRPHVWHOODUZRUN
RQWKHJOREDOLPSOLFDWLRQVRIVRFLDOPHGLD,QDGGLWLRQWKH\FRQVXOWZLWK
JOREDOFRUSRUDWHVRFLDOPHGLDWHDPVWRIHHGUHVHDUFKLQWRWKHLUORFDO
PDUNHWDQGDJHQF\EULHILQJVFRQIHUHQFHSUHVHQWDWLRQVRULQWHUQDO
SUHVHQWDWLRQV

'$01,:,6+,¶'7+28*+72)7+$7
%86,1(6623325781,7,(6:(%/2*
3DXO&KDQH\DVNV\RXWRKHOS
7KHLU%L],V&OHDQLQJ8S
UDLVHPRQH\IRUFKDULW\ZDWHU -8/30
-8/30
$FFRUGLQJWR%ORRPEHUJ%XVLQHVVZHHN'DQ5H\QROGVGLGQ¶WVHWRXWWR
EHFRPHDQHQWUHSUHQHXU
,QVWHDGWKHIXOOWLPHILUHILJKWHUDQGIRUPHUFRPPHUFLDOWUXFN
VDOHVPDQIURPVXEXUEDQ&KLFDJRZDQWHGWRKLUHRQZLWKDELJ
FULPHVFHQHFOHDQXSFRPSDQ\%XWZKHQKHZDVWUHDWHG
/RRNKRZVRFLDOPHGLDJXUX3DXO&KDQH\LVKHOSLQJZLWKRXUFKDULW\
UXGHO\GXULQJKLVLQWHUYLHZLQHDUO\KHYRZHGWRIRXQG
ZDWHUFDPSDLJQ+HUH¶VKRZKHGRHVLW
KLVRZQFRPSDQ\DVSD\EDFN
6HWDJRDO+H¶VFDOOLQJRQKLVUHDGHUVWRUDLVH
+LV&KLFDJR&ULPH6FHQH&OHDQXSJRWLWVILUVWMRE²DPHVV\
VXLFLGHLQDKRPHLQ0LQRRND,OO²WKUHHPRQWKVODWHU+H¶V
$VNWKHPWRVKDUH
EHHQEXV\HYHUVLQFH
6WLFNZLWKLW
7RGD\LQIDFWWKHVWDUWXSLVXSWRQLQHSDUWWLPHHPSOR\HHV
GUDZQPRVWO\IURPKD]PDWWHDPVDWQHDUE\ILUH
3DXOLVDXWKRURI7KH'LJLWDO+DQGVKDNHDQGLVVRPHRQHZKRNQRZVKRZ
GHSDUWPHQWVZKRVFUXEGRZQHYHU\WKLQJLQFOXGLQJ
WRVWDUWDZRUGRIPRXWKPRYHPHQW
IRUHFORVHGKRPHVWKDWKDYHEHHQVRLOHGE\YDJUDQWVDQGRU
ZLOGDQLPDOVDQGPHWKODEV
5HDG3DXO¶VSRVWDQGZDWFKKRZKHVSUHDGVWKHZRUG
6D\V5H\QROGV³,IDQRWKHUFRQWUDFWRUFRPHVLQDQGVD\V
1RWH:H¶UHSDUWQHULQJZLWKFKDULW\ZDWHUWRXVHWKHSRZHURI
µ(Z¶WKDW¶VZKHUHZHJRWRZRUN´
UHFRPPHQGDWLRQVDQGUHIHUUDOVWREULQJFOHDQVDIHGULQNLQJZDWHUWR
GHYHORSLQJQDWLRQV$OPRVWDELOOLRQSHRSOHRQWKHSODQHWGRQ¶WKDYH
5H\QROGVDQGKLVEXVLQHVVSDUWQHU0LFKDHO
DFFHVVWRFOHDQGULQNLQJZDWHU8QVDIHZDWHUDQGDODFNRIEDVLF
)UDNHVZKR¶VDOVRDIXOOWLPHILUHILJKWHUEHJDQZLWK
VDQLWDWLRQFDXVHRIDOOGLVHDVHVDQGNLOOPRUHSHRSOHWKDQDOOIRUPV
RIWKHLURZQIRUWUDLQLQJLQUHPRYDORIELRKD]DUGRXV
RIYLROHQFHLQFOXGLQJZDU
PDWHULDOVDQGHTXLSPHQWDQGIRUPDUNHWLQJ
:H¶UHJRLQJWRUDLVHDQGEXLOGZHOOVLQYLOODJHV
7KH\DOVRZHQWZLWKRXWSD\IRUDVSHOO5H\QROGVSURMHFWV
LQUHYHQXHLQDQGDWOHDVWLQ
/HDUQPRUHDERXW&KDULW\:DWHUDQGKRZ\RXFDQJHWLQYROYHG
&KLFDJR&ULPH6FHQH&OHDQXS¶VZLWKWKH86'UXJ
(QIRUFHPHQW$GPLQLVWUDWLRQLQ0LQQHVRWD:LVFRQVLQDQG
6KDUH
QRUWKHUQ,OOLQRLVDFFRXQWVIRUDERXWDWKLUGRIUHYHQXH7KH
H[SHFWHGEXPSLQLQFRPHVWHPVIURPJHWWLQJOLFHQVHG
WRGLVSRVHRISUHVFULSWLRQPHGLFLQHV

3KRWRE\&KLFDJR&ULPH6FHQH&OHDQXS

7KRRUD±6DXO&ROW7ZLWWHU±SHUVRQDO
*HW6DWLVIDFWLRQ±/DQH%HFNHU7ZLWWHU±SHUVRQDO
'$01,:,6+,¶'7+28*+72)7+$7 &RQYHUVHRQ±/LQGVD\/HEUHVFR7ZLWWHU±SHUVRQDO
:DQWSHRSOHWRVSUHDGWKH 0DUNHWLQJ6DYDQW±'DQD9DQ'HQ+HXYHO7ZLWWHU±SHUVRQDO
ZRUG"8VHWKHLUQDPHDQGPDNH 1DWLRQDO*HRJUDSKLF±%UHQGDQ+DUW7ZLWWHU±EUDQG
LWSHUVRQDO %UDQG%XLOGHU±2OLYLHU%ODQFKDUG7ZLWWHU

-8/30
-RVK%HUQRII7ZLWWHU±SHUVRQDO±DXWKRU*URXGVZHOO:LQQLQJ
%UDLQV2Q)LUHLVRQHRIWKHEHVWZRUGRIPRXWKDJHQFLHVWKHUHLV7KH\ LQD:RUOG7UDQVIRUPHGE\6RFLDO7HFKQRORJLHV
NQRZKRZWRFUHDWHDPRYHPHQWHVSHFLDOO\DURXQGDQLPSRUWDQWFDXVH
%ULDQ6ROLV7ZLWWHU±SHUVRQDO±DXWKRU(QJDJH7KH&RPSOHWH
2QHRIWKHELJOHVVRQVWKH\WHDFK0DNHLWSHUVRQDO*HWSHRSOHLQYROYHG *XLGHIRU%UDQGVDQG%XVLQHVVHVWR%XLOG&XOWLYDWHDQG0HDVXUH
KRRNWKHLUHJRDQGFDOOWKHPRXWE\QDPH 6XFFHVVLQWKH1HZ:HE
7KH\GLGMXVWWKDWLQWKHLUSRVWWRGD\DERXWRXU&KDULW\:DWHUSURMHFW 'RXJODV$WNLQ7ZLWWHU±SHUVRQDO±DXWKRU7KH&XOWLQJRI

%UDQGV:KHQ&XVWRPHUV%HFRPH7UXH%HOLHYHUV
6R%UDLQVRQ)LUHKDVOLQNHGWRDOORIWKH6XSHUJHQLXVHVEHORZ
DQGZH¶UHJRLQJHQFRXUDJHWKHPWRMRLQWKHILJKWXVHWKHLU 3DXO*LOOLQ7ZLWWHU±SHUVRQDO±DXWKRU6HFUHWVRI6RFLDO0HGLD
SRZHUVRIVWRU\WHOOLQJNQRZOHGJHRIZRUGRIPRXWKDQG 0DUNHWLQJ+RZ8VH2QOLQH&RQYHUVDWLRQVDQG&XVWRPHU
LQYROYHPHQWLQVRFLDOPHGLDWRPDNHDGLIIHUHQFH,I\RXIHHO &RPPXQLWLHVWR7XUER&KDUJH<RXU%XVLQHVV
FRPSHOOHGWRVSUHDGWKHZRUGRQ7ZLWWHUSOHDVHXVHWKH
KDVKWDJZRPIRUZDWHU -HDQQH%OLVV7ZLWWHU±SHUVRQDO±DXWKRU,/RYH<RX0RUH7KDQ
0\'RJ
0DNHU¶V0DUN±7RGG6SHQFHU7ZLWWHU±SHUVRQDO
0DUWLQ$WNLQV7ZLWWHU±SHUVRQDO±DXWKRU7RXU6PDUW
3ULQWLQJ)RU/HVVFRP±-HVVLFD&RRSHU
+XJK0DF/HRG7ZLWWHU±JDSLQJYRLG±DXWKRU,JQRUH
,QWXLW±.LUD:DPSOHU7ZLWWHU±SHUVRQDO (YHU\ERG\DQG2WKHU.H\VWR&UHDWLYLW\
(VWHH/DXGHU&RPSDQLHV±6DP'HFNHU7ZLWWHU±SHUVRQDO /HDUQPRUHDERXW&KDULW\:DWHUDQGKRZ\RXFDQJHWLQYROYHG
'XFN%UDQG±'DYLG5RGJHUV7ZLWWHU±EUDQG /HDUQDERXWWKH:RUGRI0RXWK6XSHUJHQLXVFRQIHUHQFH
'HOO±&DUROLQH'LHW]7ZLWWHU±SHUVRQDO
6KDUH
'RPLQR¶V3L]]D±5DPRQ'H/HRQ7ZLWWHU±SHUVRQDO
*HYDOLD±'DQD9RJHO
&DOLIRUQLD7RUWLOOD±6WDFH\.DQH7ZLWWHU±SHUVRQDO
*HQHUDO0LOOV±'DYLG:LWW
<HOS±.HYLQ/HH7ZLWWHU±SHUVRQDO
=DSSRV±7RQ\+VLHK7ZLWWHU±=DSSRV
2JLOY\35±5RKLW%KDUJDYD±2JLOY\35%ORJ±SHUVRQDO
6SLNH-RQHV7ZLWWHU±SHUVRQDO

%86,1(6623325781,7,(6:(%/2* LQTXLULQJDERXWKLVDFFHVVWRWKHDUFKLYHVRIUHQRZQHG
SKRWRJUDSKHU-DFN5RELQVRQ
$UW(QWUHSUHQHXU6XSSOLHV
,QDGGLWLRQWRPDLQWDLQLQJWKHSKRWRJUDSKHU¶VDUFKLYHVLQD
8QLTXH6LJQV7R7KH,PDJH VHSDUDWHEXLOGLQJDQGSURPRWLQJDQGVHOOLQJKLVZRUN
2SSHQKHLPHUNHHSVDURWDWLQJH[KLELWRI5RELQVRQ¶VLPDJHV
&RQVFLRXV RQGLVSOD\LQWKHJDOOHU\KHEXLOWLQWKHVTXDUHIRRW
-8/30 RIILFHEXLOGLQJZKHUHKH¶OODOVRDOORZORFDODUWLVWVWRVKRZ
WKHLUZRUN
³,OLNHWRVKDUHWKHZRUNRIDUWLVWVLQ0HPSKLV´
2SSHQKHLPHUVDLG
+HDOVRHPSOR\VPRVWO\DUWLVWVHLWKHUWKURXJK5RELQVRQ
(GLWLRQV5DLQERZ6WXGLRVRUKLVVFDOHPRGHOVEXVLQHVV
DSWO\QDPHG6FDOH0RGHOV8QOLPLWHG
6FUHHQVKRWIURP5RELQVRQ(GLWLRQV
%86,1(6623325781,7,(6:(%/2*
$FFRUGLQJWR7KH&RPPHUFLDO$SSHDO'DQ2SSHQKHLPHULVWUXO\D
UHQDLVVDQFHPDQ
,W¶V+RZ<RX6HOO7KH*DPH
-8/30
+H¶VDFTXLUHGFRPSDQLHVVROGFRPSDQLHVDQGLQYHQWHG
FRPSDQLHV²DQGPRVWDUHVWLOOJRLQJVWURQJ7KURXJKDOOKLV
HQGHDYRUVDQGDGYHQWXUHVWKHUHKDVEHHQDFRQVLVWHQW
FUHDWLYHLPSXOVH
³0\PRWKHUZDVDSRUWUDLWDUWLVWDQGP\GDGZDVLQWKH
VDYLQJVDQGORDQEXVLQHVV,JXHVVWKDW¶VZKHUHLWFRPHV
IURP´VDLGWKH0HPSKLVQDWLYH
2QHRI2SSHQKHLPHU¶VQHZHUHQWHUSULVHVLV5RELQVRQ
(GLWLRQVDQDUWEXVLQHVVWKDWSULQWVDQGVHOOVIUDPHGRULJLQDO
SKRWRJUDSKVDQGRWKHUXQLTXHZRUNWRWKHKRVSLWDOLW\
LQGXVWU\ZRUOGZLGH
³6RPHWLPHVLW¶VDQWLTXHERWDQLFDOSULQWV6RPHWLPHVLW¶V )URPEHKLQGKRPHSODWH-DVRQ.OHLQDQG&DVH\:KLWHORRNSURXGO\DW
YLQWDJHEODFNDQGZKLWHSKRWRVRIDSDUWLFXODUFLW\:HILQG WKH5HDGLQJ3KLOOLHV¶IODPHWKURZHU3KLOOLSSH$XPRQW
WKHLPDJHWKH\¶UHORRNLQJIRUDQGSULQWLW´VDLG2SSHQKHLPHU
,W¶VQRWKLVKLJKSULFHGDUPWKH\¶UHDGPLULQJLW¶VZKDWKH¶VZHDULQJ
³7KH\¶UHWKHRQO\WHDPZLWKSLQNRQWKHLUXQLIRUPV´:KLWHVD\V
³:HKDYHTXLWHDQLQYHQWRU\RIXQLTXHLPDJHVDQGZHNHHS
DGGLQJWRLW´ %ORRPEHUJ%XVLQHVVZHHNUHSRUWVWKDW.OHLQDQG:KLWHZKRDUHHDFK
\HDUVROGDUHWKHRZQHUVRI3ODQ%%UDQGLQJDQXSVWDUWFRQVXOWLQJ
,I2SSHQKHLPHUDQGKLVHPSOR\HHVFDQ¶WILQGLWWKH\¶OO FRPSDQ\WKDWKDVKHOSHGPRUHWKDQPLQRUOHDJXHWHDPVLQFOXGLQJ
PDNHLW WKH'RXEOH$5HDGLQJ3KLOOLHVUHEUDQGWKHPVHOYHVFUHDWLQJQHZ
XQLIRUPVORJRVDQGLQVRPHFDVHVHYHQQDPHV
7KHLPDJLQDWLYHHQWUHSUHQHXUFDPHXSZLWKWKHLGHDIRU
5RELQVRQ(GLWLRQVZKHQKHNHSWUHFHLYLQJFDOOVIURPKRWHOV ,W¶VDWKULYLQJEXVLQHVVODUJHO\EHFDXVHPLQRUOHDJXHWHDPV

XQOLNHVRPHLQWKHPDMRUVKDYHQ¶WVXIIHUHGPXFKLQWKH GLGUHSRUWV&KLFDJR%XVLQHVV
UHFHVVLRQ$WWHQGLQJD5HDGLQJ3KLOOLHVJDPHFRVWVDERXWDV
PXFKDVVHHLQJDPRYLH³,ZRQ¶WVD\ZH¶UHUHFHVVLRQSURRI +HRIWHQZRUNHGVHYHQGD\VDZHHNUROOLQJRIIKLVFKDLUWRWKH
EXWZH¶UHUHFHVVLRQUHVLVWDQW´VD\V0LQRU/HDJXH%DVHEDOO FROGRIILFHIORRUIRUDIHZKRXUV¶VOHHS7KDWEXVLQHVVWRRNRII
3UHVLGHQW3DW2¶&RQQHU DVGLGRWKHUVLQ0U'Z\HU¶VHDUO\FDUHHU%\DJHKHKDG
VROGKLVVKDUHVLQRQHEXVLQHVVDQGKDGVROGWZRRWKHUV
0HUFKDQGLVHVDOHVDFFRXQWIRUDERXWPLOOLRQRI0L/%¶V RXWULJKWIRUDFRPELQHGZLQGIDOOLQWKHPLOOLRQV
PLOOLRQLQDQQXDOUHYHQXHEXWWKHWUXHYDOXHLVKLJKHU
³7KHPHUFKDQGLVHGULYHVDZDUHQHVVZKLFKWUDQVODWHVLQWR 7LPHWRUHOD[ULJKW"³:KDW¶VWKHILUVWWKLQJ,GLGZKHQ,TXLW"
WLFNHWVDOHV´VD\V.HQ6FKQDFNHSUHVLGHQWRIWKH&ROXPEXV ,VWDUWHGWZRQHZFRPSDQLHV´KHUHFDOOV
&OLSSHUVDQGFKDLURI0L/%¶VOLFHQVLQJFRPPLWWHH
6RPHWLPHVMXVWRQHLVQ¶WHQRXJK:HFDOOWKHVHSHRSOH
2QDYHUDJHRI0L/%¶VWHDPVUHEUDQGWKHPVHOYHVHDFK ³PXOWLSUHQHXUVÉHFDXVHIRUWKHPUXQQLQJRQHFRPSDQ\DWD
\HDU2IWHQLWKDSSHQVEHFDXVHDWHDPPRYHVJHWVDQHZ WLPHLVQ¶WVXIILFLHQWO\FKDOOHQJLQJRUVDWLVI\LQJ2YHUWLPH
VWDGLXPRUDQHZRZQHURUEHFRPHVDIILOLDWHGZLWKD WKH\DFTXLUHPXOWLSOHEXVLQHVVHVDQGWU\WRPDNHWKHPDOOIO\
GLIIHUHQWPDMRUOHDJXHWHDP,WDOVRKDSSHQVEHFDXVHDQHZ DWRQFH
ORRNGULYHVVDOHV
:KLOHVRPHH[SHUWVVXVSHFWWKHUDQNVRIPXOWLSUHQHXUVPD\
3HUKDSVWKHPDLQUHDVRQ\RXVHHPRUHFRVPHWLFFKDQJHVLQ EHJURZLQJWKHUHDUHQRVROLGILJXUHVRQWKHLUSUHYDOHQFH
WKHPLQRUVLVEHFDXVHWKHRZQHUVDQGWKHLUVWDIIDUHLQ ³7KHUH¶VSUREDEO\MXVWQRWDVPDQ\RIWKHPWRUHDOO\JHWD
HVVHQFHWKHDWULFDOSURGXFHUV²DQGFRVWXPHVDUHDELJSDUWRI VDWLVIDFWRULO\VLJQLILFDQWQXPEHU´VD\V/LQGD'DUUDJK
WKHVKRZ³:HGRQ¶WFRQWURODVLQJOHWKLQJWKDWKDSSHQVRQ GLUHFWRURIHQWUHSUHQHXUVKLSSURJUDPVDWWKH8QLYHUVLW\RI
WKHILHOGQRWWKHSOD\HUVWKDWDUHVHQWWRXVRUWKHFRDFKHV´ &KLFDJR¶V3ROVN\&HQWHUIRU(QWUHSUHQHXUVKLS
VD\V5HDGLQJ3KLOOLHV*HQHUDO0DQDJHU6FRWW+XQVLFNHU
³:KDWZHFRQWUROLVZKDWKDSSHQVRIIWKHILHOGDQGPDNLQJLW 6KHSRLQWVRXWWKDWPXOWLSUHQHXUVKDYHDULFKKLVWRU\²WDNH
DJUHDWH[SHULHQFHIRUWKHIDQV´ 7KRPDV(GLVRQIRUH[DPSOH²DQGZLWKWKHHFRQRP\LQD
GRZQWXUQHQWUHSUHQHXUVKLSLVOLNHO\WRFRQWLQXHEXLOGLQJ
3KRWRE\%ORRPEHUJ%XVLQHVVZHHN ³7KHUH¶VDQDELOLW\QRZWRWHVWWKLQJVYHU\TXLFNO\<RXFDQ
KDYHDQDQDO\VWFKHFNWRVHHLISHRSOHDUHEX\LQJLWDQGXVLQJ
LWDQG\RXFDQVZLWFKWRVRPHWKLQJHOVHSUHWW\TXLFNO\´
3KRWRE\PDGDERXWDVLD
%86,1(6623325781,7,(6:(%/2*
)RU0XOWLSUHQHXUV2QH,V
1HYHU(QRXJK %86,1(6623325781,7,(6:(%/2*
-8/30
)LVK7DFRV&UHDWH$1HZ:DYH
-8/30
-RH'Z\HUKDGDVLPSOHIRUPXODWKDWKHXVHGIRUVXFFHVVZKHQKHZDV
ODXQFKLQJKLVILUVWEXVLQHVVZRUNXQWLO\RXGURS7KDWLVH[DFWO\ZKDWKH

:H¶UHKRRNHGRQILVKWDFRV²DQGLW¶VDERXWWLPH2QO\QRZLVPDVV
FXOWXUHJREEOLQJXSILVKWDFRVDWDUDWHWKDWLVPDNLQJWKHPRQHRIWKH
UHVWDXUDQWLQGXVWU\¶VWRSWUHQGV
7DFR%HOOWKH0H[LFDQIDVWIRRGVWDOZDUWIRUGHFDGHVUHFHQWO\
DQQRXQFHGLWZLOORIIHUWKHPLQVWRUHVQDWLRQZLGHQH[W\HDU
%XWLWLVEHKLQGWKHFXUYHDFFRUGLQJWRDVWRU\LQ86$7RGD\)LVKWDFRV
UDQNWKDPRQJWKHLWHPVVROGDWWKH&KHHVHFDNH)DFWRU\FKDLQ
2IIWKHFKDUWVWHVWLQJFRPSHOOHG&DOLIRUQLD3L]]D.LWFKHQWRLQFOXGH
WKHPRQWKHPHQX0DQ\RWKHUIUDQFKLVHVWKDWKDGOLWWOHWRGRZLWK
WUDGLWLRQDO0H[LFDQIRRGDUHELWLQJDVZHOO
,W¶VDSHUIHFWVWRUPIRUPDUNHWLQJ&RQVXPHUVZDQWDQHZ
WZLVWRQWKHWDFRDQGWKH\ZDQWLWWREHKHDOWKLHU:DUUHQ
6DFNOHUDKRVSLWDOLW\SURIHVVRUDW5RFKHVWHU,QVWLWXWHRI
7HFKQRORJ\VDLGLQWKHVWRU\
$WOHDVWLQLWVXQDGXOWHUDWHGVWDWHILVKLVORZLQIDWKLJKLQ
SURWHLQZLWKPDQ\VSHFLHVFRQWDLQLQJ2PHJDRLOVDLGWR
SURWHFWWKHKHDUW)LVKWDFRVDSSHDUWRJLYHILWQHVVPLQGHG
0H[LFDQIRRGORYHUVWKHZKROHHQFKLODGD2QWKHIOLSVLGH
UHVWDXUDQWVDUHUHHOLQJLQSURILW
1RWHYHQWKH*XOIRLOVSLOOKDVGDPSHQHGWKHWUHQGGHVSLWHD
8QLYHUVLW\RI0LQQHVRWDVXUYH\LQWKHDUWLFOHWKDWVDLG
SHUFHQWRIFRQVXPHUVVDLGWKH\ZRXOGVFDOHEDFNWKHLU
VHDIRRGFRQVXPSWLRQEHFDXVHRIWKHGLVDVWHU
3KRWRE\86$72'$<

-XO\
7RGD\·V7DEEORLG
817(03/$7(5 $QGWKHQKDYH\RXHYHUJRQHVRPHSODFHWKDWZDVREYLRXVO\ZRQGHUIXO
DQGIDEXORXVVRPHSODFHDOO\RXUIULHQGVUHFRPPHQGHGDQGORYHGDQG
6PDUW.H\V IHOWQRWKLQJEXWERUHGRPDQGGLVFRQWHQW"
-8/$0
'LG\RXHYHUZDQWZLWKDOO\RXUKHDUWWRORYHDSHUVRQRUDSODFHDQG
GHVSLWHDOONLQGVRISHUVLVWHQFHDQGPDQLSXODWLRQDQGVHOIGHFHSWLRQ
KDYHWRILQDOO\DGPLWWKDW\RXUVPDUWNH\MXVWZDVQ¶WFRQQHFWLQJDQG
KDYHWRUHVLJQ\RXUVHOIWRWKHIDFWWKDW\RXZRXOGQHYHUJHWLQZRXOG
DOZD\VUHPDLQVKXWRXW"
+DYH\RXHYHUWULHGDQHZVSRUWRUDFWLYLW\UXQQLQJEDOOURRPGDQFLQJ
URFNFOLPELQJJROI\RJDHWFDQGIHOWVRPHWKLQJXQORFNDQGLJQLWH
ZLWKLQ\RXDWWKHERG\RUVRXOOHYHODQGNQRZZLWKRXWTXHVWLRQWKDW
\RXFRXOG'2WKLVHYHQLIDWILUVW\RXZHUHLQFUHGLEO\DZNZDUGDQG
FOXPV\"
,WKLQNLW¶VLPSRUWDQWWREHJLQQRWLFLQJZKDWRXU³VPDUWNH\V´DUH
XQORFNLQJ$QGZKDWWKH\DUHQ¶W,WKLQNZHZDVWHRXUOLYHVZKHQZHWU\
WREUHDNLQWRDMRERUKDYHDUHODWLRQVKLSRUOLYHLQDSODFHRUHQJDJHLQ
DQDFWLYLW\WKDW¶VQHYHUJRLQJWRKDSSHQIRUXVHYHQWKRXJKZHPD\ZDQW
LWWRRUWKLQNZHVKRXOG
0\3ULXVKDVVRPHWKLQJFDOOHGD³VPDUWNH\´,GRQ¶WKDYHWRXQORFNWKH
GRRUZLWKWKLVNH\RUVWLFNLWLQWKHLJQLWLRQ,MXVWKDYHWRKDYHLWRQ %XWLIZHXQGHUVWDQGWKDWGHHSLQVLGHXVDUHKLGGHQPDQ\³VPDUWNH\V´
PH±LQP\SRFNHWRUP\EDJ±DQGWKHFDUVHQVHVLWDQGRSHQVWKHGRRU VKRXOGQ¶WZHWDNHLWDVRXUVDFUHGGXW\RXUOLIHPLVVLRQRXUMREWRILQG
ZKHQ,WRXFKWKHKDQGOHDQGVWDUWVZKHQ,SXVKWKH3RZHUEXWWRQRQWKH HYHU\VLQJOHGRRUWKHVHNH\VPD\XQORFN"
GDVK
$VD\RJDWHDFKHURQHRIWKHWKLQJV,VD\DWWKHHQGRIFODVVLV³1RWLFH
7KLV³VPDUWNH\´LVRQHRIP\IDYRULWHWKLQJVDERXWWKH3ULXVWKHJDV KRZ\RXIHHO´,WKLQNLW¶VSUREDEO\WKHPRVWLPSRUWDQWPRPHQWLQWKH
PLOHDJHLVQ¶WEDGHLWKHU HQWLUHFODVV%XWDEHWWHUTXHVWLRQPLJKWEH³'LGDQ\WKLQJXQORFNIRU
\RXWRGD\":KDWRSHQHG"
%XWODWHO\,¶YHEHHQJHWWLQJWKHVHQVHWKDWWKHUHPD\EHPRUHWKDQRQH
VPDUWNH\LQP\EDJ,¶PEHJLQQLQJWRVHQVHWKDW,KDYHDEXQFKRI
³VPDUWNH\V´HPEHGGHGLQVLGHPHDWWKHKHDUWRUVRXOOHYHOWKDW
DXWRPDWLFDOO\FRQQHFWPHWRFHUWDLQSHRSOHSODFHVDQGDFWLYLWLHV
)RUH[DPSOHKDYH\RXHYHUPHWDSHUVRQDQGMXVWLQVWDQWO\KLWLWRII"
2QHSRVVLEOHH[SODQDWLRQLVWKDW\RXULQWHUQDO³VPDUWNH\ÚHVSRQGHGWR
RULJQLWHGDVSDUNLQWKHLUV
$QGFRQYHUVHO\KDYH\RXHYHUPHWVRPHRQHDQGGHVSLWHKDYLQJDPLOOLRQ
WKLQJVLQFRPPRQZHUHQHYHUDEOHWRFRQQHFWLJQLWHRUVWDUWD
PHDQLQJIXOUHODWLRQVKLS"
2UKDYH\RXHYHUJRQHVRPHSODFH±DWRZQRQYDFDWLRQRUDQHZFLW\RU
HYHQDUHVWDXUDQWRUDEDUDQGIHOWLQVWDQWO\DWKRPHDQGFRPIRUWDEOH"
/LNH\RX¶GEHHQWKHUHEHIRUH"7KDW\RXNQHZLQVWLQFWLYHO\ZKHUHWKH
EDWKURRPZDVRUKRZWRJHWDURXQGRQWKHEXVV\VWHP"

6(7+¶6%/2* +RZGR,NQRZWKLV"
8SVWUHDPDQGGRZQVWUHDP %HFDXVHLWKDSSHQHGWRPH
-8/$0
7ZRZHHNVDJR,W\SHGLQWKHQDPHRIP\JXLGHH%RRNVWKH6PDUW
0RVWRIWKHWLPHZHWKLQNRIRXUMREDVDVHWRIWDVNVWKDWWDNHSODFHLQD :D\DQGWKHWRSUHVXOWZDVWKHOHDGLQSDJHZLWKWKHRSWLQIRUP
±!>ER[@±
7KLVLVJRRG
,WWXUQVRXWWKRXJKWKDWLIZHJRXSVWUHDPDQGDOWHUWKHVWXIIWKDWFRPHV
WRXVLW¶VDORWHDVLHUWRGRJUHDWZRUN$QGLIZHJRGRZQVWUHDPDQG +RZHYHUWKHVHFRQGUHVXOWLQJOLQNZDVWKHDFWXDOSDJHWKDWKDGWKHOLQNV
WHDFKSHRSOHKRZWRZRUNZLWKZKDWZHFUHDWHGWKHILQDOSURGXFWLV WRGRZQORDGP\H%RRN
EHWWHUDVZHOO1RZLW¶VPRUHRID²!>ER[@²
7KLVLVEDG
$GRFWRUFDQFRQVLGHUKHUZRUNLQWKHER[RIWKHH[DPLQLQJURRP%XWLI
VKHILJXUHVRXWKRZWRJHWSHRSOHWRTXLWVPRNLQJEHIRUHWKH\FRPHLQ $OWKRXJK,¶PQRWVXUHKRZPDQ\SHRSOHGRZQORDGHGP\H%RRNE\JRLQJ
KHUUHVXOWVDUHEHWWHU,IVKHILJXUHVRXWKRZWRJHWSHRSOHWRWDNHWKHLU VWUDLJKWWRWKHGRZQORDGSDJHHYHQLIWKHQXPEHUZDV]HURLW¶VMXVWQRW
PHGVDIWHUWKH\OHDYHVDPHWKLQJ JRRGSUDFWLFHWRKDYHWKHDELOLW\WRE\SDVVWKHOHDGLQSDJHDQGKDYH
DFFHVVWRDJLYHDZD\OLNHWKLV7KLVZDVGHILQLWHO\DQDFWRIFDUHOHVVQHVV
$GHVLJQHUZKRUHFHLYHVDEHWWHUSURMHFWEULHIZLOOGHOLYHUEHWWHUZRUN$ RQP\SDUWDQG,VKRXOGKDYHNQRZQEHWWHU
PDQXIDFWXUHUZKRILJXUHVRXWKRZWRWHDFKXVHUVWRXVHWKHREMHFW
SURSHUO\ZLOOJHWEHWWHUZRUGRIPRXWK $QGWKLVLVZK\,¶PZULWLQJWKLVSRVWIRU\RXVR\RXGRQ¶WPDNHWKHVDPH
PLVWDNHDVPH
0DUNHWHUVRIFRXUVHFDQKDYHWKHELJJHVWER[RIDOO6RWKHVWXIIZHWKLQN
RIDVµPDUNHWLQJ¶FDQEHDOWHUHGORQJEHIRUHWKHSHUVRQHYHUVHHVDQDG +RZWR+LGHD3DJHRU3RVW)URP*RRJOH
DQGKDYHDQLPSDFWORQJDIWHUWKH\¶YHJRWWKHSURGXFW
%HIRUH<RX3XEOLVK
7KHFKDOOHQJHOLHVLQVSHQGLQJDORWRIWLPHDQGPRQH\RQWKHXSVWUHDP
DQGGRZQVWUHDPSDUWVRIWKHZRUNLQVWHDGRIDOZD\VDVVXPLQJWKDW\RXU 7KHEHVWSUDFWLFHZRXOGEHWRQRWLQFOXGHWKHSDJHWKDW\RXGRQ¶WZDQWWR
>ER[@LVMXVWZKDWKDSSHQVLQVLGH\RXUFXELFOHRUDVDGLUHFWUHVXOWRI EHLQFOXGHGLQWKHVHDUFKHQJLQHVIURPWKHYHU\EHJLQQLQJ
\RXUDFWLRQV
,QRUGHUWRGRWKLV\RX¶UHJRLQJWRKDYHWRWHOOWKHVHDUFKHQJLQHERWVWR
³VNLSRYHU´WKDWSDJHZKHQJRLQJWKURXJK\RXUVLWH7KHHDVLHVWZD\WRGR
WKLVLVWRXVHD:RUG3UHVV3OXJLQFDOOHG5RERWV0HWD
7+(60$573$66,9(,1&20(%/2*
7KLVSOXJLQKDVDORWRIRSWLRQVDVIDUDVWKHPHWDGDWDDQGEDFNHQGVWXII
+RZWR+LGHD3DJHIURP RI\RXUEORJLVFRQFHUQHGEXWZKDW¶VQLFHLVWKDWRQHYHU\QHZSDJHDQG
SRVWWKDW\RXFUHDWH\RX¶OOVHHDOLWWOHER[RQWKHVLGHWKDWORRNVOLNHWKLV
*RRJOH
-8/$0
7KLVLVDVKRUWWXWRULDODERXWKRZWRKLGHRUUHPRYHDSDJHIURP*RRJOH
:HOODFWXDOO\ZH¶UHQRW³KLGLQJ´DQ\WKLQJIURP*RRJOHZH¶UHMXVWWHOOLQJ
*RRJOHQRWWRLQGH[FHUWDLQSDJHVRQRXUVLWHVRWKH\GRQ¶WVKRZXSLQWKH
VHDUFKHQJLQHV
:K\ZRXOG\RXZDQWWRGRWKLV"
7KHUHDUHVRPHLQVWDQFHVZKHUH\RXDFWXDOO\GRQRWZDQWFRQWHQWRQ
\RXUVLWHWRVKRZXSLQWKHVHDUFKHQJLQHV/HW¶VVD\IRUH[DPSOH\RX
KDYHDQHZVOHWWHUDQGLWFRPHVZLWKDIUHHH%RRNRUDUHSRUW,I\RX
FUHDWHDVSHFLDOSDJHWKDWKDVOLQNVWRGRZQORDG\RXUH%RRNLWZLOOJHW
SLFNHGXSE\VHDUFKHQJLQHURERWVVKRZXSRQWKHUHVXOWVSDJHIRU
FHUWDLQNH\ZRUGVDQGSHRSOHFDQSRWHQWLDOO\E\SDVV\RXURSWLQIRUPWR
JHWWKHH%RRNWKDW\RX¶UHJLYLQJDZD\ ,I\RXVHOHFW³QRLQGH[´WKHSDJHZLOOQRWEHSLFNHGXSE\WKHVHDUFK

HQJLQHV7KH³IROORZ´DQG³QRIROORZ´VWXIIUHODWHVWRWKHOLQNVWKDWDUHRQ
WKHSDJHZKLFKLVDWRSLFIRUDQRWKHUEORJSRVW
,I\RXGRQ¶WKDYH:RUG3UHVV\RXFDQIROORZWKHPRUHWHFKQLFDO
LQVWUXFWLRQVRQ2QOLQH7HFK7LSV
$IWHU<RX3XEOLVK
,QP\FDVH,KDGDOUHDG\SXEOLVKHGWKHSDJHWKDW,ZDQWHGWRWDNHRXWRI
WKHVHDUFKHQJLQHV,I\RX¶UHLQDVLPLODUSUHGLFDPHQWGRQ¶WIUHW±KHUH¶V
ZKDW\RXKDYHWRGR
1RWH\RXGRQ¶WQHHG:RUG3UHVVLQRUGHUWRGRWKLV
6WHS,QVHUWWKH85/FDVHVHQVLWLYHWKDW\RXZDQWWR
UHPRYH
6WHS)ROORZWKH6WHSVIRU%HIRUH<RX3XEOLVK)LUVW
6WHS6HWWKH³5HDVRQÍRUWKHUHTXHVWWR5HPRYH3DJHIURP
,QRUGHUWRUHPRYHWKHD85/IURP*RRJOH¶VLQGH[\RXPXVWILUVW³EORFN´
6HDUFK5HVXOWVDQG&DFKHDQGFOLFNWKHEXWWRQIRU³EORFNHGE\
WKDWSDJHXVLQJWKHWHFKQLTXHWKDW,GHVFULEHGDERYH,I\RX¶UHRQ
QRLQGH[PHWDWDJ´WKLVLVZKDW6WHSZDVIRU7KHQFOLFN
:RUG3UHVVXVHWKH5RERWV0HWDSOXJLQDQGPDNHVXUHWRFKDQJHWKH
³6XEPLW5HTXHVW´
VHWWLQJWR³QRLQGH[´DQGXSGDWHWKHSDJH
'RLQJWKLVDORQHZLOOQRWFKDQJHDQ\WKLQJULJKWDZD\VR\RX¶OOKDYHWR
SURFHHGZLWKWKHIROORZLQJVWHSV
6WHS6LJQ8SIRU*RRJOH:HEPDVWHU7RROVDQG9HULI\<RXU
:HEVLWH
$QGWKHUH\RXKDYHLW$IWHUWKDW\RX¶OOVHHWKDWWKHUHTXHVWWRKDYHWKDW
*RWR*RRJOH:HEPDVWHU7RROVDQGVLJQXSIRUDQDFFRXQWLI\RXKDYHQ¶W SDJHUHPRYHGZDVVXEPLWWHGDQGDIWHUDGD\RUWZR\RXVKRXOGVHHLWLQ
DOUHDG\,I\RX¶UHQHZ\RX¶OOKDYHWRLQVHUWDVKRUWSLHFHRIFRGHLQWRWKH WKH³UHPRYHG´FROXPQ7KHQ\RXFDQFKHFNWRVHHLILW¶VLQ*RRJOHDQG
KHDG!VHFWLRQRI\RXUVLWHEHIRUHWKHERG\!WRYHULI\WKDWLVLQGHHG \RXZRQ¶WKDYHDQ\OXFNILQGLQJLW
\RXUVLWH
$OWKRXJK\RXPD\QRWEHDEOHWRXVHWKLVWLSULJKWDZD\GRQ¶WIRUJHW
6WHS*RWR³&UDZOHU$FFHVV´ DERXWLWLQFDVH\RXPD\KDYHWRXVHLWLQWKHIXWXUH
2SHQWKH6LWH&RQILJXUDWLRQPHQXDQGFOLFNRQ&UDZOHU$FFHVV :KHWKHU\RX¶UHVWDUWLQJDEUDQGQHZQHZVOHWWHURUFUHDWLQJVRPHNLQGRI
RQOLQHFRXUVH±NQRZWKDW\RXFDQLQGHHGFRQWUROZKDWJHW¶VVKRZQLQ
*RRJOH
,I\RXKDYH\HWWRJUDE\RXUFRS\RIP\IUHHH%RRNH%RRNVWKHPDUW
:D\ZLWKRYHUGRZQORDGV,GHILQLWHO\UHFRPPHQGLW<RXZRQ¶W
ILQGLWLQWKHVHDUFKHQJLQHVDQ\PRUH
&KHHUV
±±±±±±±
6WHS&OLFNRQ³5HPRYH85/´DQGWKHQRQ³1HZ5HPRYDO VXFFHVVEHFDXVHRI\RXDQG\RXUVXSSRUW+HUH¶VWR\RXURQOLQH
5HTXHVW´ VXFFHVV

%86,1(6623325781,7,(6:(%/2*
WKHFRQYHUVDWLRQ 3XEOL[-RLQV7KH/XQFKER[
7KDQN\RXVRPXFK :DUV
-8/30
+RZWR+LGHD3DJHIURP*RRJOH
5HODWHGSRVWV
$IILOLDWH/LQNV±7R+LGHRU1RWWR+LGH±:KDW¶V<RXU2SLQLRQ"
$UH<RX2SWLPL]LQJ<RXU3DJH"<HV<RXU3DJH
+RZWR5XQ)UHH6SOLW7HVWV8VLQJ*RRJOH2SWLPL]HUIRU%HWWHU
5HVXOWV
:KDW:RXOG+DSSHQLI*RRJOH6KXW'RZQ":RXOG76+7)"
+RZWR3XEOLVKDQ(ERRN6HULHV±3DUW±6WHSVWRD*UHDW
6DOHV/DQGLQJ3DJH
/RRNRXW/XQFKDEOHV3XEOL[LVJHWWLQJLQWRWKHNLGVPHDOEXVLQHVV
'$01,:,6+,¶'7+28*+72)7+$7
/RRNZKR¶VFRPLQJWR:RUGRI 7KH7DPSD7ULEXQHUHSRUWVWKDWZLWKVFKRROVHWWRVWDUWLQDFRXSOH
PRQWKVWKH6RXWKHDVW¶VOHDGLQJJURFHU\FKDLQLVSODQQLQJWRUROORXWD
0RXWK6XSHUJHQLXV VHULHVRILWVRZQSUHSDFNDJHGNLGVPHDOVEXWGHOLPDGHDQGGHVLJQHGWR
WXFNQHDWO\LQWRNLG¶VOXQFKER[HV
-8/30
7KHPRYHWDUJHWVWKHGHPRJUDSKLFRIEXV\RIWHQJXLOWULGGHQ
-RLQWKHVHIXQEULOOLDQWDQGVXVSLFLRXVO\JRRGORRNLQJFRPSDQLHV SDUHQWVDQGWKHLUKDELWRIUHDFKLQJIRUSUHSDFNDJHG
MRLQLQJXVDW:RUGRI0RXWK6XSHUJHQLXVRQ-XO\LQ1HZ<RUN FRQYHQLHQFHOXQFKHVIRUWKHLUNLGVVRPHWLPHVDWWKHGULYH
WKURXJKZLQGRZ
$EERWW/DEV$OOVWDWH%D]DDUYRLFH%OXH0DQ*URXS%UDLQV2Q)LUH
&DOLIRUQLD7RUWLOOD&KDUPLQJ6KRSSHV7KH&ROHPDQ&RPSDQ\&RQ$JUD 5ROOLQJRXWRQ-XO\3XEOL[NLG¶VPHDOVZLOOFRVW
)RRGV&RVWFR&RW\3UHVWLJH'HOO'RPLQR¶V'XFN%UDQG(VWHH/DXGHU DSLHFH7KHUHZLOOEHILYHSUHVHWRSWLRQVVXFKDVWKH³3HDQXW
*25(7(;+ 5%ORFN+6%&.RKOHU.UDIW)RRGV/¶2FFLWDQHHQ %XWWHU$SSOH:UDS´ZLWKSHDQXWEXWWHUDQGDSSOHVOLFHVLQD
3URYHQFH0DNHU¶V0DUN0F'RQDOG¶V0HGLD7HPSOH0HHWXSFRP PXOWLJUDLQZUDSVWULQJFKHHVHPLQLFDUURWV\RJXUWDQGD
0LFKHOLQ0ROVRQ&RRUV1DWLRQDO*HRJUDSKLF1&52JLOY\353HDUVRQ IUXLWGULQN
3HQJXLQ*URXS3LWQH\%RZHV7KH3ULQFHWRQ5HYLHZ49&6SULQW7DVWL
'/LWH7KRPVRQ5HXWHUV7LPH,QF7L9R7XUQHU%URDGFDVWLQJ6\VWHP 3XEOL[RIILFLDOVVD\QXWULWLRQZDVWKHGULYLQJIDFWRULQFUHDWLQJ
8QLYHUVDO0F&DQQ86$$:\QGKDP:RUOGZLGH<HOSDQG=DSSRV WKHLUPHDOVDQGWKH\UDQHDFKPHDOSDVWDQLQKRXVH
GLHWLWLDQ
3KRWRE\7KH7DPSD7ULEXQH
6KDUH

%86,1(6623325781,7,(6:(%/2* %86,1(6623325781,7,(6:(%/2*
([0F'RQDOG¶V([HFV3ODQ +RPHOHVV.LGV6WDUW%LNH
+HDOWK\(DWHU\ 'HOLYHU\%L]
-8/30 -8/30
0HGLD3RVW1HZV
5LJKWQRZWKH\¶UHFDOOLQJLW6WHSKDQLH¶VDIWHURQHRIWKH
SULQFLSDO¶VGDXJKWHUVEXWWKDWPD\FKDQJHEHIRUHWKHILUVW $FFRUGLQJWR6DQ'LHJRFRPMXVWDIHZ\HDUVDJR$EUDKDP/DXUDDQG
RQHRSHQVQH[W\HDUZLWKSRVVLEO\KHUEJDUGHQVRQWKHURRI 5XWK6DQFKH]ZHUHKRPHOHVV7KH\OLYHGDWWKH5HVFXH0LVVLRQ
JUDVVSDUNLQJORWVIUHVKIORZHUVRQWDEOHVDQGELRGHJUDGDEOH GRZQWRZQZLWKWKHLUPRWKHUDQGRWKHUEURWKHUVDQGVLVWHUV
FXWOHU\WRJRZLWKEUHDNIDVWRIIHULQJVOLNHFLQQDPRQVWHHOFXW
RDWVDQGOXQFKDQGGLQQHUHQWUHHVOLNHVPRNHGFKLFNHQ $EUDKDP/DXUDDQG5XWKZRXQGXSDW7KH0RQDUFK6FKRRO
VZHHWSHDVRXS5XSDO3DUHNKDQG(PLO\%U\VRQ<RUNUHSRUW WKHODUJHVWVFKRROIRUKRPHOHVVFKLOGUHQLQWKHFRXQWU\:KLOH
WKH\ZHUHWKHUHWKH\PHWUHWLUHGEXVLQHVVPDQ-RKQ5RVLFN\
7KHUHSRUWHUVFDPHDFURVVSUHOLPLQDU\SODQVIRUWKHFRQFHSW ZKRYROXQWHHUHGDWWKHVFKRROKHOSLQJVWXGHQWVUXQ%XWWHUIO\
ZKLFKZDVGHYHORSHGE\HQWUHSUHQHXU6WHYH6LGZHOO+HLQ (QWHUSULVHVZKLFKVROGVWXGHQWFUDIWHGMHZHOU\DQGRWKHU
WXUQHQOLVWHGIRUPHU0F'RQDOG¶VH[HFXWLYHV0LNH5REHUWV SURGXFWV
DQG0LNH'RQDKXHLQGHYHORSLQJWKHH[HFXWLRQIRUDQHZ
IDVWFDVXDOGLQLQJFKDLQWKDWFRXOGDFFRUGLQJWRSURMHFWLRQV 7KDWWUDLQLQJLQVSLUHGWKH6DQFKH]VLEOLQJVWREHFRPH
KDYHRXWOHWVZLWKLQILYH\HDUV³,IDQ\ERG\FDQPDNHLW HQWUHSUHQHXUVWKHPVHOYHV7KLVPRQWKWKH\ODXQFKHG
KDSSHQLW¶VWKHVHJX\V´VD\V*DU\6WLEHO&(2RIWKH1HZ 6DQFKH]'HOLYHU\DELF\FOHFRXULHUVHUYLFHIRUWKHGRZQWRZQ
(QJODQG&RQVXOWLQJ*URXS DUHD
'RQDKXHZDVFLUFXPVSHFWLQGLVFXVVLQJWKHIXWXUHVD\LQJWKH ³:HWROGKLPZHKDGEHHQORRNLQJIRUMREVEXWFRXOGQ¶WILQG
SDUWQHUVKDYH³QRWDQJLEOHJRDOVRWKHUWKDQWRGRRQHUHDOO\ DQ\WKLQJ$QGKHVDLGKHKDGWKLVJUHDWLGHDIRUDELF\FOH
JRRGORFDWLRQJHWWKHWDVWHSURILOHULJKWDQGWKHDIIRUGDELOLW\ GHOLYHU\VHUYLFHDQGWKRXJKWZHPLJKWZDQWWRWU\LW´VD\V
ULJKW´DQGWKHQVHHLIDQGKRZTXLFNO\WKHFRQFHSWFDQVFDOH 5XWK
3KRWRE\FDWVSHU 5RVLFN\VD\VKHKDGWKHLGHDIRUFRXULHUVHUYLFHDORQJWLPH
DJRDQGWKRXJKWLWFRXOGEHDJUHDWVHUYLFHIRUGRZQWRZQ
EXVLQHVVHV³,NQHZLWZRXOGWDNHDELJFRPPLWPHQWDORWRI
GHWHUPLQDWLRQDQGSHUVHYHUDQFHWRPDNHVRPHWKLQJOLNHWKLV
ZRUN
$QGWKHVHWKUHHNLGVDUHVREULJKWDQGFDSDEOHVRUHOLDEOH
DQGLQGXVWULRXV7KH\ZHUHSHUIHFWIRUDEXVLQHVVOLNHWKLV´
KHVD\V5RVLFN\KDVEHHQERWKPHQWRUDQGEHQHIDFWRUWRWKH
6DQFKH]VLEOLQJV²KHERXJKWWKHPWKHLUVKLUWVFRXULHUEDJV
DQGHYHQWKHLUELNHV²ZKLFKKHIRXQGRQ&UDLJVOLVW

6DQFKH]'HOLYHU\ZLOOSLFNXSDQGGHOLYHU\MXVWDERXW
DQ\WKLQJIRUDIODWUDWHRIZKHWKHULW¶VGRFXPHQWVRU
&KLQHVHIRRGRUGU\FOHDQLQJ7KH\ZLOODOVRSLFNXSOHJDO
GRFXPHQWVIURPODZILUPVDQGILOHWKHPLQFRXUWIRUDIODW
UDWHRI '$01,:,6+,¶'7+28*+72)7+$7
:KHQWKH\DUHQ¶WRQDGHOLYHU\FDOOWKH\KDQGRXWIO\HUVWR 2QH'D\RI/RYH+DSSLQHVV
GRZQWRZQEXVLQHVVHVDQGSDVVHUVE\
DQG:RUGRI0RXWK0DUNHWLQJ
3KRWRE\6DQ'LHJRFRP -8/30
<RXKDYHLGHDVWKDWWKHZRUOGQHHGVWRKHDU
%XWJUHDWLGHDVGRQ¶WDOZD\VJHWWKHUHFRJQLWLRQWKH\GHVHUYH
%86,1(6623325781,7,(6:(%/2* <RXQHHGWRKHOSLWDORQJDQGWKDWWDNHVZRUGRIPRXWKPDUNHWLQJ
7HQQHVVHH,V2SHQ)RU%XVLQHVV <RX¶OOOHDUQKRZDW:RUGRI0RXWK6XSHUJHQLXV-XO\LQ1HZ<RUN
-8/30
7KLVLVWKH³+RZWREH*UHDWDW:RUGRI0RXWK0DUNHWLQJ´
FRQIHUHQFH
/HDUQVSHFLILFXVHIXOVWUDWHJLHVWRJHWSHRSOHWDONLQJDERXW\RX
+RZWR&ODVVHV6LPSOHKDQGVRQOHVVRQVRQHVVHQWLDOZRUG
RIPRXWKVNLOOV
&DVH6WXGLHV5HDOZRUOGVXFFHVVVWRULHVIURP'HOO.UDIWDQG
PRUH
%ULOOLDQW$XWKRUV-RVK%HUQRII%ULDQ6ROLV+XJK0DF/HRG
DQGPRUH
&RPSHOOLQJ.H\QRWHV=DSSRV&(27RQ\+VLHKDQG:RUGRI
0RXWKJXUX$QG\6HUQRYLW]WKDW¶VPH
7KH1DVKYLOOH%XVLQHVV-RXUQDOLVUHSRUWLQJWKDWWKH7HQQHVVHH 6HHWKHIDVFLQDWLQJIXOODJHQGD
'HSDUWPHQWRI(FRQRPLFDQG&RPPXQLW\'HYHORSPHQWLVQRZDFFHSWLQJ
HQWULHVLQWRWKHLU³:KDW0DNHV<RXDQ(QWUHSUHQHXUÝLGHRFRPSHWLWLRQ 2XUSURPLVH<RX¶OOXVHZKDW\RXOHDUQWRJHWPRUHEXVLQHVV
WKHYHU\QH[WGD\ZLWKRXWVSHQGLQJPRQH\
(QWULHVZLOOEHDFFHSWHGWKURXJK2FWWKURXJKWKH
7HQQHVVHH2SHQIRU%XVLQHVVZHEVLWH *HWVLPSOHKDQGVRQDGYLFHIURPSHRSOHZKR¶YHUHDOO\GRQHLW7KLVLVD
KWWSWQRSHQIRUEXVLQHVVRUJ)LQDOLVWVZLOOEHVHOHFWHGIURP SUDFWLFDO\RXFDQGRLWEORZ\RXUPLQGZLWKUHVXOWVNLQGRIGD\
ILYHFDWHJRULHV0DLQ6WUHHWGRZQWRZQKRPHEDVHGDJUL
EXVLQHVVDUWVDQGHQWHUWDLQPHQWDQGLQQRYDWLRQ7KH 0DNHLWZRUNIRU\RXZLWKUHDOZRUOGFDVHVWXGLHVIURPFRPSDQLHVMXVW
VWDWHZLGHZLQQHUZLOOUHFHLYHDSUL]HDQGDPDUNHWLQJ OLNH\RXUV0DNHLWZRUNZLWKQREXGJHW²MXVWEUDLQVYLVLRQHQHUJ\
SDFNDJHZRUWKDSSUR[LPDWHO\ DQGDFRPSHOOLQJUHDVRQIRUSHRSOHWRWDONDERXW\RX
7KHYLGHRFRPSHWLWLRQLVSDUWRIWKHVWDWH¶V*OREDO <RX¶UHJRLQJWROHDUQKRZORYHDQGKDSSLQHVVEULQJLQPRUHFXVWRPHUV
(QWUHSUHQHXUVKLS:HHNFHOHEUDWLRQVFKHGXOHGIRU1RY± $QG,JXDUDQWHH\RX¶OOIHHOORYHOLHUDQGKDSSLHUZKHQ\RXJHWPRUHVDOHV
:LQQHUVIURPWKHYLGHRFRQWHVWZLOOEHDQQRXQFHGGXULQJ ZKLOHVSHQGLQJPXFKOHVVRQPDUNHWLQJ
WKDWWLPH
$OOWKHGHWDLOV
,PDJHIURP712SHQ)RU%XVLQHVV

7KH³+RZWREH*UHDWDW:RUGRI0RXWK0DUNHWLQJ´&RQIHUHQFH $QGWKHQ\RX¶OOGRLWDJDLQ$OLWWOHELJJHU$QGDJDLQ$ORWELJJHU
-XO\1HZ<RUN&LW\ $QGWKHQ\RX¶OOEHEULQJLQJLQPRUHFXVWRPHUVIRUIUHHHYHU\GD\
EHFDXVH\RXUIDQVZLOOWHOOWKHLUIULHQGVKRZPXFKWKH\ORYH\RX
KWWSJDVSHGDOFRPVXSHUJHQLXV
%XW,¶GUDWKHUVSHQGDOOP\PRQH\RQH[SHQVLYHDGYHUWLVLQJ
<RX¶OOOHDUQWKHHVVHQWLDOZRUGRIPRXWKVNLOOVWRUXQDQ
HIIHFWLYHZRUGRIPRXWKPDUNHWLQJSURJUDP <RXJRJLUO$GYHUWLVLQJPLJKWZRUNIRU\RX1RWXV
+RZWREH$ZHVRPHRQ7ZLWWHUDQG)DFHERRN $GYHUWLVLQJLVWKHSULFHRIEHLQJERULQJ
+RZWR5HVSRQGWR)HHGEDFN3RVWV&RPPHQWVDQG7ZHHWV <RXRQO\KDYHWZRZD\VWRJHW\RXUPHVVDJHRXWWKHUH/RYHRUPRQH\
+RZWR6WD\(WKLFDODQG2XWRI7URXEOH <RXFDQEX\DGYHUWLVLQJ\RXFDQSD\SHRSOHWRWDONIRU\RX%XW\RX
DOZD\VSD\HYHU\WLPH²IRUHYHU
+RZWR&UHDWH2IIOLQH:RUGRI0RXWK
%XWZKHQSHRSOHWDONIRUORYHLQVWHDGRIPRQH\LW¶VVXVWDLQDEOHDQG
+RZWR&UHDWHDQG3URPRWH<RXU%ORJ UHQHZDEOHDQGLWJURZVZLWKXVHLQVWHDGRIJHWWLQJXVHGXS
+RZWR:RUNZLWK2QOLQH5HYLHZV 1RZLVWKHWLPHWREXLOGDQDUP\RIIDQVZKRZLOOWDONDERXW\RXIRUIUHH
EHFDXVHWKH\ORYH\RX
+RZWR&UHDWH%X]]ZRUWK\7RSLFV
)LQGRXWKRZ\RXFDQVWRSSD\LQJIRUDGVDQGVWDUWHDUQLQJORYH
+RZWR&UHDWH:RUGRI0RXWKRQ=HUR%XGJHW
KWWSJDVSHGDOFRPVXSHUJHQLXV
+RZWR,QVSLUH:20ZLWK&XVWRPHU6HUYLFH
/RYH"+DSSLQHVV":7)"
+RZWR:RUNZLWK%ORJJHUVDQG,QIOXHQFHUV
7KLVLVQ¶W:RRGVWRFN:H¶UHWDONLQJDERXWVHOOLQJVWXII
+RZWR0HDVXUH:RUGRI0RXWK
=DSSRVVROG%,//,21LQVKRHVEHFDXVHWKHLUFXVWRPHUVORYHWKHP
+RZWR&UHDWHD)DQ&RPPXQLW\
=DSSRV&(27RQ\+VLHKZLOOEHMRLQLQJXVWRWHOO\RXH[DFWO\KRZKHGLG
/HDUQDERXWWKHIDVFLQDWLQJH[SHUWVWHDFKLQJHDFKFODVV LW²DQGKRZ\RXFDQWRR
IDQWDVWLFEUDQGVZLOOVKRZ\RXH[DFWO\KRZWKH\GRLWVR\RX :HGRLWKHUHDW*DV3HGDOZLWKHPSOR\HHVDQGVRPHFOHYHULQWHUQV,W
FDQEULQJLQPRUHFXVWRPHUVWRR ZRUNVIRUDQ\VL]HFRPSDQ\,W¶OOZRUNIRU\RX
5HDODGYLFHEDVHGRQUHDOZRUOGZRUGRIPRXWKVXFFHVVVWRULHVIURP <RX¶OOPHHW7RQ\DQGJHWDFRS\RIKLVQHZERRN³'HOLYHULQJ+DSSLQHVV´
(VWHH/DXGHU'XFN7DSH'HOO0DNHU¶V0DUN)LVNDUV:LQGVRU2QH
'RPLQR¶V3L]]D3ULQWLQJ)RU/HVV*HYDOLD&DOLIRUQLD7RUWLOOD /HDUQDOODERXW7RQ\DQGKRZ=DSSRVGHOLYHUVKDSSLQHVV
&KDULW\:DWHUDQG,QWXLW
+RO\PRO\'R,JHWWRKDYHOXQFKZLWKDQDPD]LQJDXWKRU"
:K\LVLWDRQHGD\FRQIHUHQFH"
<HV\RXGR,W¶OOEHDWRXJKFKRLFH
%HFDXVHZH¶UHJRLQJWREORZ\RXUPLQGPDQ
+XJK0DF/HRG±&DUWRRQLVWDQGFUHDWLYHPXVHWRHQWUHSUHQHXUV
%HFDXVH\RXDUHJRLQJWREHVRHQHUJL]HGVRHPSRZHUHGVRH[FLWHGWRGR HYHU\ZKHUH$XWKRURI³,JQRUH(YHU\ERG\´
ZKDW\RXOHDUQ²WKDWWKHUH¶VQRZD\\RX¶OOEHDEOHWRVLWVWLOOIRUDVHFRQG
GD\ -HDQQH%OLVV±:KRWXUQHG/DQGV¶(QGLQWRWKHEHDFRQRI
XQPDWFKDEOHFXVWRPHUVHUYLFH$XWKRURI³,/RYH<RX0RUH7KDQ
<RXZLOOUXQRXWRIWKLVPHHWLQJDQGSODQ\RXUILUVWELJZRUGRIPRXWK 0\'RJ´
FDPSDLJQ<RX¶OOGRLWWKHQH[WGD\,W¶OOEHVLPSOHHDV\DQGFKHDS
'RXJODV$WNLQ±7KH0HHWXSFRP)HOORZZKRNQRZVZK\SHRSOH
$QG\RX¶OOJHWPRUHFXVWRPHUV,PPHGLDWHO\ WDWWRRORJRVRQWKHLUDUPV$XWKRURI³7KH&XOWLQJRI%UDQGV´

3DXO*LOOLQ±%WR%VRFLDOPHGLDJXUXZKRVKRZVKRZWRPDNHLW ³$VWHOODUHYHQW´1LFKROH'X3RQW%811
UHDO$XWKRURI³6HFUHWVRI6RFLDO0HGLD0DUNHWLQJ´
³6KRUWVZHHWDQGWRWKHSRLQW´0LFKHOH*HKUPDQQ3URJUHVVLYH
%ULDQ6ROLV±0HJDEORJJHUSLRQHHUZKRZLOOKHOS\RXFRQQHFWDQG ,QVXUDQFH
HQJDJHZLWK\RXUIDQV$XWKRURI³(QJDJH´
³,ZDONHGDZD\ZLWKDORWPRUHIURPWKLVRQHGD\HYHQWWKDQWKHWKUHH
-RVK%HUQRII±7KHJXUXRIELJEXVLQHVVVRFLDOPHGLDZKRNQRZV GD\HYHQW,DWWHQGHGODVWPRQWK´%ULDQ%XQW:LQGVRU21(
KRZZRUGRIPRXWKKDSSHQVLQJOREDOHQWHUSULVHV$XWKRURI
³*URXQGVZHOO´ ³,JRWP\PRQH\¶VZRUWKLQWKHILUVWPLQXWHV7KHFRQIHUHQFHZDVIXOO
RIUHDG\WRXVHWLSVDQGDGYLFH´-DQLQH6PLOH\'DLU\)DUPHUVRI
&KHFNRXWWKHLUIDVFLQDWLQJERRNV $PHULFD
7KLVLVQRWZKDW\RXDUHH[SHFWLQJ ³$WUXO\LPSUHVVLYHFROOHFWLRQRIVSHDNHUVZLWKDSSOLFDEOHLQVLJKWV´
%ULDQ$VQHU8SVKRW
1RSDQHOVQRYHQGRUVQREODWKHUQRVHOOLQJ
³,JRWDKDQGFUDPSDIWHUWKHILUVWWZRKRXUVRIIHYHULVKO\WU\LQJWRWDNH
VSHDNHUVPLQXWHVHDFK7('FRQIHUHQFHVW\OH,W¶VIDVWLW¶V GRZQDOOWKHFXWWLQJHGJHLGHDVFRPLQJP\ZD\´%LOO0ROOHU7&3XEOLF
IDVFLQDWLQJDQGQHZLGHDVFRPHVKRRWLQJDW\RXOLNHPDUVKPDOORZVIURP 5HODWLRQV
DPDUVKPDOORZJXQ
³:KDWDZHOOUXQVHPLQDU(YHU\RQHVWD\HGULJKWRQWLPHDQGWKHUHZDV
:K\7('VW\OH"%HFDXVHLILW¶VJRRGHQRXJKIRU%LOO\*UDKDP%LOO*DWHV SOHQW\RIWLPHWRQHWZRUNDQGWDONWRSHHUV´6DQGUD%XHWWQHU-RKQVRQ
DQG%LOO&OLQWRQLW¶VJRRGHQRXJKIRUXVPDUNHWLQJGXGHV &RQWUROV
%XW,KDWHFRQIHUHQFHV ³([WUHPHO\ZHOORUJDQL]HGJUHDWVSHDNHUVJUHDWYHQXHDQGYHU\
SURIHVVLRQDOO\UXQ´-RHO:DUDG\-RHO:DUDG\*URXS
7KLVLVQRWDFRQIHUHQFH<RXZRQ¶WILQG\RXUVHOIORFNHGLQDGDUNKRWHO
EDOOURRPZLWKVFDU\FDUSHWDQGEDGOLJKWIRUWKUHHGD\V ³7KHFRQWHQWZDVWRSQRWFK7KHTXDOLW\RIVSHDNHUVZHUHJUHDW7KHYLEH
ZDVYHU\JRRG´-RKQ0RRUH%UDQG$XWRSV\
2QHLQYLJRUDWLQJLQWHQVHGD\LQDVXQQ\URRPRQWKHULYHUIRRW
ZLQGRZVDQGEOXHVNLHV$QHQYLURQPHQWWRRSHQ\RXUVSLULWDQGRSHQ ³:HQRZKDYHVRPDQ\LGHDVZHGRQ¶WHYHQNQRZZKHUHWRVWDUW´
\RXUPLQGWRLGHDVWKDWZLOOFKDQJHKRZ\RXGREXVLQHVVIRUHYHU +HDWKHU9\Y\DQ(GXFDWRUV&UHGLW8QLRQ
<RX¶OOEHUHIUHVKHGH[FLWHGDQGUHDG\WRGRLW ³,UHDOO\JRWDORWRXWLW«GHILQLWHO\WLPHZHOOVSHQW´'DYLG'HDO
5D]RUILVK
$QGJUHDWIRRGDOOWKHWLPH:H¶OONHHS\RXRQDVXJDUDQGFDIIHLQHKLJK
,¶PVXUHWKHUHZLOOEHDEURFFROLLI\RX¶GUDWKHUKDYHWKDW ³+HDUWKHEHVWDQGEULJKWHVW7KLVHYHQWVKRXOGQ¶WEHPLVVHG´%ODNH
&DKLOO9LVLEOH7HFKQRORJLHV
,VLWUHDOO\DVJRRGDV\RXVD\"
³6XSHUJHQLXVZDV6XSHU6XSHU,QIRUPDWLYH6XSHU&ROODERUDWLYHDQG
,W¶VEHWWHU+HUH¶VZKDWDWWHQGHHVWR6XSHUJHQLXVKDGWRVD\ 6XSHU:HOO2UJDQL]HGDQG([HFXWHG´%UXFH0RQWJRPHU\7HFKQRORJ\
$FFHVV7HOHYLVLRQ
³$OO,FDQVD\DERXWWKH6XSHUJHQLXVFRQIHUHQFHLV:2:´6WHSKDQLH
/HZLV7&3XEOLF5HODWLRQV ³,OHDUQHGPRUHLQRQHGD\WKDQ,KDYHDWPXFKORQJHUPRUHH[SHQVLYH
HYHQWV´7ULFD0XPE\0DEHO¶V/DEHOV
³*UHDWFRQWHQWWKURXJKRXWWKHGD\UHDOO\NHSWWKLQJVIUHVK´%UHQW
%\QXP6WDWH)DUP,QVXUDQFH ³,WIHOWJRRGWRNQRZ,ZDVVXUURXQGHGE\RWKHUVZKRVKDUHP\SDVVLRQ
IRU:20PDUNHWLQJDQGFUD]\LGHDVWKDWKHOSVSUHDGWKHZRUG´
³6XSHUJHQLXVUDQNVLQH[SHULHQFH´/LQGVD\/HEUHVFR&RQYHUVHRQ 6KDQQRQ+XRW(GXFDWRUV&UHGLW8QLRQ
³,HQMR\HGHYHU\PRPHQWRIWKHHYHQW´6DXO&ROW7KRRUD )LQGRXWKRZ\RXFRXOGIHHOWKLVJRRG
³$QH[FHOOHQWDQGH[WUDRUGLQDU\FRQIHUHQFH´/DQH%HFNHU*HW 6WLOOQRWFRQYLQFHG"/RRNZKRFRPHVWRRXUHYHQWV
6DWLVIDFWLRQ
:RUGRIPRXWKDQGVRFLDOPHGLDOHDGHUVIURP0$IODF$OOVWDWH
³'HILQLWHO\DµPXVWDWWHQG¶FRQIHUHQFH´0LFKHOOH+DOP.ROFUDIW $PHULFDQ([SUHVV$PHULFDQ)DPLO\,QVXUDQFH$ULED$7 7$XGL

%DUQHV 1REOH%HVW%X\%RHLQJ&DPSEHOO6RXS&DSLWDO2QH&KDUOHV ,PSRUWDQWQRWH$WWHQGHHVRI*DV3HGDOFRQIHUHQFHVUHSRUWZKLWHUWHHWK

6FKZDE&KHYURQ&KLFNILO$&LVFR&ORUR[&RDFK&RFD&ROD&ROGZHOO VKLQLHUKDLUORVHDQDYHUDJHRISRXQGVDQGHDUQWKHUHVSHFWRIWKHLU
%DQNHU&RPPXQLW\0HGLFDO&HQWHUV&RQ$JUD)RRGV&UDWH %DUUHO SHHUV5HVXOWVPD\YDU\
'HOO'LVFRYHU'ROH'RPLQR¶V'X3RQWH%D\)HG([)RUG*DQQHWW
*DS*(*HQHUDO0LOOV*HQHUDO0RWRUV*RRJOH*UDFR+HUW]7KH $OOWKHGHWDLOVKWWSJDVSHGDOFRPVXSHUJHQLXV
+RPH'HSRW+3+ 5%ORFN+6%&+XPDQD,%0,.($,QWHO,QWXLW
-RKQVRQ -RKQVRQ.DLVHU3HUPDQHQWH/HYL6WUDXVV0DWWHO0D\R
&OLQLF0F'RQDOG¶V0HW/LIH0LFKHOLQ0LFURVRIW0ROVRQ1+/1%& 6KDUH
8QLYHUVDO1HVWOH3XULQD1RNLD1RUWKZHVWHUQ0XWXDO1RYDUWLV2UDFOH
2UELW]3D\3DO3HSVL&R3HWUR&DQDGD3IL]HU3URFWHU *DPEOH
3URJUHVVLYH,QVXUDQFH6$36HDUV6HUWD6KDUSLH6RQ\6SULQW
6WDUEXFNV6WDWH)DUP6XQ0LFURV\VWHPV6XQ*DUG6\PDQWHF7DUJHW
7KH1RUWK)DFH7LFNHWPDVWHU7L9R7XUQHU%URDGFDVWLQJ6\VWHP7\VRQ
)RRGV8QLWHG$LUOLQHV83686$$861DY\9HUL]RQ9,=,2
:DOPDUW:HOOV)DUJRDQG:KLUOSRRO %86,1(6623325781,7,(6:(%/2*
$QGDORWRIUHJXODUVL]HFRPSDQLHVWRR (WFK$6NHWFK7XUQV
-8/30
-RLQWKHP
%XW,VWLOOGRQ¶WEHOLHYH\RX,WFRXOGQ¶WEHWKDWJRRG
6XSHUJHQLXVLVVRJUHDWZH¶UHJLYLQJLWDOODZD\²EHFDXVHZHNQRZ\RX¶OO
MXVWKDYHWRVKRZXSDQGVHHLWOLYH
:DWFKHYHU\VLQJOHYLGHRIURPRXUODVWHYHQW)RUIUHH5LJKWKHUH
%XWDUHWKHQHZVSHDNHUVDVJRRGDVODVWWLPH"
<HV±WKDW¶VZK\ZH¶UHOHWWLQJ\RXOLVWHQWRDVSHFLDOSUHYLHZLQWHUYLHZ
ZLWKHYHU\VLQJOHVSHDNHUKHUH
(YHQLI\RXFDQ¶WPDNHWKHHYHQW\RX¶OOOHDUQDWRQ6KDUHWKHYLGHRVZLWK
\RXURIILFHDQGIULHQGV
:KDWGR,QHHGWREULQJ" $FFRUGLQJWR:LUHGPDJD]LQHWKHWHFKQRORJ\EHKLQGWKLVFKLOGUHQ¶VWR\
LVERWKVLPSOHDQGFRPSOH[6LPSOHLQWKDWDQLQWHUQDOVW\OXVLVXVHG
%ULQJQRWKLQJH[FHSWEXVLQHVVFDUGV$QGSDQWV1RVKLUWQRVKRHVQR PDQLSXODWHGE\WXUQLQJKRUL]RQWDODQGYHUWLFDONQREVWR³HWFKDVNHWFK´
VHUYLFH RQWRDJODVVZLQGRZFRDWHGZLWKDOXPLQXPSRZGHU
'RQ¶WZRUU\\RX¶OOJHWDZHOFRPHNLWZLWKHYHU\WKLQJ\RXQHHGLQWKH &RPSOH[EHFDXVHWKH(WFKD6NHWFKHPSOR\VDIDLUO\
PDLOEHIRUHWKHHYHQW VRSKLVWLFDWHGSXOOH\V\VWHPWKDWRSHUDWHVWKHRUWKRJRQDOUDLOV
WKDWPRYHWKHVW\OXVDURXQGZKHQWKHNQREVDUHWXUQHG7KH
'R,QHHGDPRXVWDFKH" VW\OXVHWFKHVDEODFNOLQHLQWRWKHSRZGHUFRDWHGZLQGRZWR
FUHDWHWKHGUDZLQJ
<HV:H¶OOPDLOWKDWWR\RXDOVR
$ORQJZLWKWKHDOXPLQXPSRZGHUWKHJXWVRIWKHWR\LQFOXGH
$Q\RWKHUGHWDLOV" DORWRIWLQ\VW\UHQHEHDGVWKDWKHOSWKHSRZGHUIORZHYHQO\
ZKHQWKHVNHWFKLVEHLQJHUDVHGE\VKDNLQJUHFRDWLQJWKH
:KDW:RUGRI0RXWK6XSHUJHQLXV VFUHHQIRUWKHQH[WGUDZLQJ$VIRUKRZWKHDOXPLQXP
SRZGHUVWLFNVWRWKHZLQGRZZHOOLWSUHWW\PXFKVWLFNVWR
:KHQ-XO\ HYHU\WKLQJ
:KHUH1HZ<RUN&LW\ $UWKXU*UDQMHDQD)UHQFKPDQZDVWKH(WFKD6NHWFK¶V
LQYHQWRUKHFDOOHGLW/¶(FUDQ0DJLTXHRU³7KH0DJLF

6FUHHQ´$IWHUIDLOLQJWRJHWVRPHRIWKHELJJHUWR\FRPSDQLHV
WRELWHKHVROGKLVLQYHQWLRQWRWKH2KLR$UW&RPSDQ\ZKLFK
KDVPDQXIDFWXUHGLWHYHUVLQFH
,W¶VVDIHWRVD\WKDWQHLWKHU*UDQMHDQQRU2KLR$UWFRXOGKDYH
HQYLVLRQHGWKHWR\¶VHYHUODVWLQJDSSHDORUWKHYLUWXRVLFVNLOO
ZLWKZKLFKVRPHDUWLVWVKDYHPDQLSXODWHGLW:HGLGQ¶W
EHOLHYHVRPHRIWKHVHLPDJHVHLWKHUXQWLOZHVDZWKLVYLGHR
RI(WFK$6NHWFKDUWLVW*HRUJH9ORVLFKLQDFWLRQ
3KRWRE\2KLR$UW

-XO\
7RGD\·V7DEEORLG
%86,1(6623325781,7,(6:(%/2* 3KRWRE\*D]HWWH7LPHV
1HZ,QYHQWLRQ6XUH7R6WLFN
-8/$0
'$01,:,6+,¶'7+28*+72)7+$7
2OG6SLFH7XUQLQJDRQHWLPH
YLUDOKLWLQWRDORQJWHUPVRFLDO
PHGLDFDPSDLJQ
-8/$0
,PDJLQHZKDWLWZRXOGWDNHWRPDNHSHRSOHZDNHXSFDOOD
EXGG\DQGVD\³'XGH«OHW¶VZDWFKGHRGRUDQWFRPPHUFLDOVWRGD\´
2OG6SLFHKDVDKLW79FRPPHUFLDOWKDWZHQWYLUDOELJWLPH5HDGP\SRVW
$FFRUGLQJWRWKH*D]HWWH7LPHV.DLFKDQJ/LDSURIHVVRURIZRRG
DERXWLW0RVWFRPSDQLHVZRXOGUXQDIHZPRUH79DGVDQGWU\WRPLON
VFLHQFHDW2UHJRQ6WDWH8QLYHUVLW\UHFHLYHVDGR]HQFDOOVHDFKGD\IURP
WKHIDGXQWLOLWIDGHVDZD\
EXVLQHVVHVLQWHUHVWHGLQKLVODERUDWRU\¶VODWHVWLQYHQWLRQDQLQH[SHQVLYH
DGKHVLYHPDGHRIQDWXUDOPDWHULDOV
2OG6SLFHLVWDNLQJLWWRWKHQH[WOHYHO3HRSOHZKRWZHHWDERXWWKH
FDPSDLJQJHWDSHUVRQDO YLGHRUHVSRQVHIURPWKHDFWRULQWKH
+HVDLGWKH\¶UHLQWHUHVWHGLQWKHDGKHVLYH¶VXVHRIVLPSOH
FRPPHUFLDO:KLFKJHWVPRUHWZHHWV:KLFKVHQGVPRUHSHRSOHWR
UHXVDEOHLQJUHGLHQWVLQFOXGLQJYHJHWDEOHRLOZKLFKNHHSV
<RX7XEH$QGWKHQWKH\VKDUHLW:DWFKWKHYLGHRVKHUH
FRVWVGRZQ
7KHVHFUHWWRPDNLQJYLUDOFRQWHQW
³,I,JDYH\RXWKHUHFLSH\RXFRXOGFRRNLWLQ\RXUNLWFKHQDW
KRPH´/LVDLG
*5($7&217(17±7KHYLGHRVDUHIXQQ\WKH\¶UHRULJLQDOWKH\
PDNH\RXODXJK1RWKLQJHOVHPDWWHUVLIWKHFRQWHQWLVQ¶WIDQWDVWLF
/LDQGKLVWHDPVWXPEOHGXSRQWKHLUGLVFRYHU\ZKLOHWU\LQJWR
GHYHORSDQDOOQDWXUDODGKHVLYHWKDWPHOWVDWKLJK
$5($62172&20(%$&.±$GGLQJIUHVKYLGHRVHYHU\GD\JRW
WHPSHUDWXUHVEXWLVVROLGDWURRPWHPSHUDWXUHXVHGIRU
SHRSOHWRVXEVFULEHWRWKH2OG6SLFH<RX7XEHFKDQQHO
FDUGERDUGRUZRRGIXUQLWXUH
(DFKQHZYLGHRODXQFKHVZLWKDKHDGVWDUWIURPDSUHH[LVWLQJIDQ
EDVH
7KH\GLGQ¶WUHDFKWKHLURULJLQDOJRDOEXWIRXQGDSUHVVXUH
VHQVLWLYHDGKHVLYH±RQHWKDWUHTXLUHVSUHVVXUHIRUXVH±WKDW
$5($621726+$5(±3HUVRQDOUHVSRQVHVJHWUHWZHHWV+RZ
FDQEHXVHGRQDOOW\SHVRISURGXFWVIURPGXFWWDSHWRVWLFN\
FDQ\RXQRWVKDUHLW"
QRWHVWRODEHOV
7DNHDORRN
7KHYHJHWDEOHRLOEDVHGDGKHVLYHLVSRVHGWRPDNHDQLPSDFW
/LVDLGHQYLURQPHQWDOO\IULHQGO\DGKHVLYHVRQWKHPDUNHW
2Q7ZLWWHU#1+/%ODFNKDZNVZURWH³#2OG6SLFH:KDWZRXOG\RXGRRQ
WRGD\DUHH[SHQVLYHDGGLQJWKDWQHDUO\DOODGKHVLYHVDUH
DGD\ZLWKWKH6WDQOH\&XS"
PDGHIURPSHWUROHXPEDVHGFKHPLFDOV
2Q7ZLWWHU#*LOOHWWHZURWH³#2OG6SLFHZKDW¶VXSP\IULHQG«ELJIDQ
³(YHQLIZHXVHXSWKHZRUOG¶VRLOVXSSO\ZHFDQVWLOOPDNH
WDSH´ZLWKWKLVWHFKQRORJ\/LVDLG

9LGHRYLD1HZ<RUN7LPHVµ<RX¶UHWKH%RVV¶
´ 3KRWRE\0LOH0HWHU
2Q7ZLWWHU#*6WHSKDQRSRXORVZURWH³#2OG6SLFH+H\2OG6SLFH0DQ²
3ROLWLFDOTXHVWLRQ3UHVLGHQW¶VORVWVRPHIHPDOHVXSSRUW+RZGRHV:+
JHWWKRVHZRPHQYRWHUVEDFN"´
2Q7ZLWWHU#$O\VVDB0LODQRZURWH³8PPP²$UH\RXVLWWLQJGRZQ""" 817(03/$7(5
6LWGRZQ5HDG\"7KH#ROGVSLFHJX\VHQWPHURVHV´
'R<RX8VHWKH):RUG2QOLQH"
2Q7ZLWWHU#PUVNXWFKHUZURWH³2OG6SLFH*X\,ZDQWDVSHFLDOYLGHR -8/$0
UHVSRQVHZRZ´
2Q7ZLWWHUKXIILQJWRQSRVWZURWH³2OG6SLFH*X\0DNHV+LODULRXV
3HUVRQDOL]HG9LGHRV)RU)DQVKWWSKXIIWRE<25Q´
:DWFKWKHPDOOKHUH
/HDUQPRUH
7KH1H[W:HE7KH%HVW6KLUWOHVV2OG6SLFH*X\9LGHRV&HOHEULW\
(GLWLRQ
0DVKDEOH7KH2OG6SLFH*X\1RZ0DNLQJ&XVWRP9LGHRVIRU)DQVYLD
6RFLDO0HGLD
6KDUH ,UHFHQWO\SRVWHGDFRPPHQWRQ)DFHERRNWKDWEDVLFDOO\JDYHDELJ)XFN
<RXWRWKHHQWLUHVWDWHRI*HRUJLDIRUWKHLUDUELWUDU\OLTXRUODZVWKDW
SUHYHQWPHIURPSXUFKDVLQJDQ\VRUWRIDOFRKROMXVWEHFDXVHLW¶VDFHUWDLQ
GD\RIWKHZHHN6XQGD\0\FRPSODLQWLVWKDWWKHODZLVDUFKDLF
LJQRUDQWDQGRXWGDWHG,FRXOGSUREDEO\KDYHZULWWHQDORQJUDQWDERXW
WKHWRSLFEXWLQVWHDG,FKRVHWRH[SUHVVP\IUXVWUDWLRQZLWKDILUP)XFN
<RX
%86,1(6623325781,7,(6:(%/2*
,JRWUHDPHGIRUXVLQJWKH)ZRUGLQDSXEOLFIRUXP5HDOO\IRUXVLQJWKH
+RZ,6DYHG0\&RPSDQ\ )ZRUGDWDOO
-8/$0
$OLWWOHEDFNJURXQG,DPFRQVWDQWO\ORRNLQJIRUZD\VWRWDNHP\FDUHHU
DQGOLIHVW\OHWRWKHQH[WOHYHO2QHRIP\ELJJHVWJRDOVIRUWKHQH[W\HDULV
WREHFRPHDFUHDWLYHSUROLILFZULWHU$V8QWHPSODWHUEHOLHYHUVPDQ\RI
\RXZLOOKDYHWKHVDPHJRDOWKRXJKLWPLJKWPDQLIHVWLQDGLIIHUHQWZD\
,QWU\LQJWRUHDFKP\JRDOKRZHYHU,¶YHJRWWHQPXFKPRUHFRPIRUWDEOH
ZLWKWKH)ZRUG
,QIDFW,¶YHQRWLFHGWKDWWKHPRVWSURGXFWLYHDQGFUHDWLYHSHRSOHLQWKH
ZRUOGERWKRQOLQHDQGRIIOLQHVHHPWRXVHWKH)ZRUGPRUH
0LOH0HWHUOLNHVWRWKLQNRILWVHOIDVWKH³DQWLLQVXUDQFHLQVXUDQFH
7KLQNDERXWLW/DFLQJ\RXUVHQWHQFHVZLWKWKH)ZRUGDWHYHU\WXUQLV
FRPSDQ\´,WVHOOVDXWRLQVXUDQFHE\WKHPLOH²ZKLFKPHDQVWKDWWKH
XQSURIHVVLRQDORIIHQVLYHDQGXQQHFHVVDU\E\DOOWUDGLWLRQDOVWDQGDUGV
OHVV\RXGULYHWKHOHVV\RXSD\IRULQVXUDQFH
1RWRQO\WKDWEXWWKH)ZRUGLVSUREDEO\WKHPRVWXQFUHDWLYHZRUG\RX
FRXOGSRVVLEO\XVHLQGDLO\VSHHFK7KHSUREOHPLVZKHQ\RXDUHUHDOO\
6HHKRZ&KULV*D\IRXQGHUDQGFKLHIH[HFXWLYHPDQDJHGWRNHHSWKH
DQJU\IUXVWUDWHGZRUULHGRUVWUHVVHGVRPHWLPHVWKHHDVLHVWZD\WR
FRPSDQ\DOLYH
EORZRIIVWHDPDQGJHWEDFNWRZRUNLVWROHWRXWDELJ)XFNDQGMXVWEH

GRQHZLWKLW )$,/5$5(/<,QWHUDFWLRQVZLWKVPDOOJURXSVRIDFWXDOXVHUVDQG
FXVWRPHUV
$QGWKDW¶VWKHWKLQJDERXWFUHDWLYLW\:HDUHDOOFUHDWLYH\HWZHRQO\KDYH
VRPXFKFUHDWLYHHQHUJ\IRURXUGDLO\DQGZHHNO\WDVNV:KHQWKHJDV )$,/1(9(5.HHSLQJSURPLVHVWR\RXUFRQVWLWXHQWV
WDQNLVHPSW\WKHFDUVWRSVPRYLQJ<RXDUHGRQHIRUWKHZHHNQR
PDWWHUKRZPDQ\SK\VLFDOKRXUVPRUH\RXSXWLQ 7KHWKLQJLVLQWKHLUUXVKWRSOD\LWVDIHDQGWKHQWKHLUXUJHQF\WRVDOYDJH
HYHU\WKLQJLQWKHIDFHRIDQHPHUJHQF\PRVWRUJDQL]DWLRQVGRSUHFLVHO\
7KHUHDUHSHRSOHZKRVSHQGORWVRIWLPHWU\LQJWRFRPHXSZLWKFUHDWLYH WKHRSSRVLWH7KH\WKURZWKHLUFXVWRPHUVRUWKHLUSHRSOHXQGHUWKHEXV
ZD\VWRQRWVD\WKHZRUG)XFNZKHQWKH\ZRXOGKDYH)XGJHIXPEOHEHH ³ZHKDGQRFKRLFHÉXWUDUHO\WDNHWKHSURDFWLYHVWHSVQHFHVVDU\WRIDLO
PRWKHUIDWKHURUP\SHUVRQDOIDYRULWHPRWKHUFKXFNHU*RVVLS*LUO TXLHWO\DQGRIWHQLQSULYDWHLQDGYDQFHZKHQWKHUH¶VVWLOOWLPHWRPDNH
DQ\RQH"DUHDOOMXVWFUHDWLYHZD\VWRVD\WKHH[DFWVDPHWKLQJZLWKRXW WKLQJVEHWWHU
DFWXDOO\VD\LQJ)XFN,QRWKHUZRUGV\RXDUHZDVWLQJDOORI\RXU
FUHDWLYLW\DQGZLWWLQHVVRQDYRLGLQJDZRUGWKDWFDXVHVQRSK\VLFDOKDUP %HWWHUWRKDYHDGLIILFXOWFRQYHUVDWLRQQRZWKDQDIDLOHGFXVWRPHU
DQGRQO\KDVPHDQLQJZKHQ\RXOHWLW LQWHUDFWLRQODWHU
6RZKDWDUHZHGRLQJUHDOO\"7U\LQJQRWWRRIIHQGDQ\RQH"2IFRXUVHWKH
SHRSOHZKRDUHWUXO\RIIHQGHGE\WKHZRUG)XFNDUHDOVRZDVWLQJWKHLU
FUHDWLYHHQHUJ\EHLQJRIIHQGHG:LWKLQPLQXWHVRISRVWLQJP\WZR 7+(60$573$66,9(,1&20(%/2*
VHQWHQFHDQQR\DQFHRQ)DFHERRNDEXQFKRISHRSOHVHQWPHORQJ
PHVVDJHVH[SODLQLQJZK\WKH\FRPPHQWHGRUZK\WKH\JRWRIIHQGHG +RZ:HOO&DQ<RX'HVFULEH
EODKEODKEODK7REHKRQHVW,GLGQ¶WZULWHWKHPEDFN,W¶VQRWWKDW,
GRQ¶WFDUHLW¶VMXVWWKDW,¶PEXV\JHWWLQJUHDOVKLWGRQHDQG,¶PQRWJRLQJ <RXU:HEVLWHLQ-XVW7KUHH
WRZDVWHDQ\RIP\FUHDWLYHHQHUJ\RQWKHLUSHUVRQDOGUDPDVWKDWOLNHO\
KDYHQRWKLQJWRGRZLWKPHLQWKHILUVWSODFH :RUGV"
-8/$0
'R\RXXVHWKH)ZRUG"'RHVLWDIIHFW\RXUSURGXFWLYLW\RUFUHDWLYLW\"
*DU\9D\QHUFKXN7LP)HUULVVDQG3HQHORSH7UXQNDOOXVHWKHZRUG
)XFNOLEHUDOO\DQG,GRQ¶WVHHWKHPVXIIHULQJIURPODFNRISURIHVVLRQDO
UHODWLRQVKLSVORVVLQMRERSSRUWXQLWLHVRULVVXHVZLWKSHUVRQDOEUDQGLQJ
,¶PQRWVD\LQJVWDUW::,,,ZLWK\RXU)ERPEVEXWPD\EHOHWWLQJORRVH
ZLOOEULQJ\RXPRUHVXFFHVVLQWKHORQJUXQ:KDWGR\RXWKLQN"
6(7+¶6%/2*
$KLHUDUFK\RIIDLOXUHZRUWK
IROORZLQJ
-8/$0 7KLVLVDVKRUWSRVW±\HVEXWDSRZHUIXORQH,WLQYROYHVDOLWWOHELWRI
SDUWLFLSDWLRQVRSOHDVHGRQ¶WEHVK\
1RWDOOIDLOXUHVDUHWKHVDPH+HUHDUHILYHNLQGVIURPIUHTXHQF\ JRRG
DOOWKHZD\WRSOHDVHGRQ¶W $FRXSOHRIZHHNVDJR,VKDUHGWKLVOLWWOHH[HUFLVHRQP\)DFHERRN3DJH
)$,/2)7(1,GHDVWKDWFKDOOHQJHWKHVWDWXVTXR3URSRVDOV ,DVNHGP\IROORZHUVWRVKDUHDOLQNWRWKHLUZHEVLWHDQGGHVFULEHLWXVLQJ
%UDLQVWRUPV&RQFHSWVWKDWRSHQGRRUV RQO\WKUHHZRUGV
)$,/)5(48(17/<3URWRW\SHV6SUHDGVKHHWV6DPSOHDGVDQGFRS\ $Q\ZRUGVEXWRQO\WKUHH
)$,/2&&$6,21$//<:RUNLQJPRFNXSV3OD\WHVWLQJVHVVLRQV%RDUG $IWHURYHUUHVSRQVHV,IRXQGWKDWWKLVVLPSOHVRXQGLQJWDVNZDV
PHHWLQJV DFWXDOO\TXLWHKDUGIRUVRPHSHRSOHDQGLQIDFWLWPDGHVRPHUHWKLQNWKH
HQWLUHFRQFHSWRIWKHLUZHEVLWHVDQGZK\LWH[LVWV

6RWRGD\,LQYLWH\RXWRGRWKHVDPH,QWKHFRPPHQWVHFWLRQSOHDVH %86,1(6623325781,7,(6:(%/2*
RQO\UHVSRQGZLWKWKUHHZRUGVWKDWGHVFULEH\RXUVLWH'RQRWLQFOXGHD
OLQNLQWKHFRPPHQWVHFWLRQEHFDXVHP\VSDPILOWHUPLJKWEORFN\RX %XVLQHVV,GHD&XSFDNH/LQHU
,QVWHDGSXWWKHOLQNLQWKH85/ILHOGXQGHUZKHUH\RXUQDPHJRHV
:HEVLWH
ZRUGVRQO\1R85/V2KDQGQRK\SKHQVHLWKHU«VQHDN\SHRSOH -8/30
,ZRQ¶WOHDYH\RXZLWKDQ\PRUHLQVWUXFWLRQVEXWKHUH¶VVRPHWKLQJWR
WKLQNDERXW
:KDWWKUHHZRUGVZLOO\RXFKRRVHWKDWPDNH\RXVWDQGRXW
IURPHYHU\RQHHOVH"
7KLVLV\RXU³DEULGJHGHOHYDWRUSLWFK´VRPDNHLWJRRG
2KDQGWKHUHZLOOEHVRPHWKLQJQLFHLQVWRUHIRUWKHIHZWKDWVWDQGRXWWR
PHWKHPRVW%HVXUHWROHDYH\RXUFRUUHFWHPDLODGGUHVVLQWKHUHTXLUHG
ILHOGVR,FDQFRQWDFW\RX
/DVWO\,KRSH\RX¶OOMRLQPHLQFHOHEUDWLQJWKHODXQFKRI7KH6PDUW
3DVVLYH,QFRPH3RGFDVWWKLVFRPLQJ0RQGD\,¶YHEHHQZRUNLQJKDUG
VHWWLQJHYHU\WKLQJXSEXWLW¶VILQDOO\KHUH
&KHHUV 7RGD\¶VIUHHEXVLQHVVLGHDLVWRVWDUWDZHEVLWHWKDWVHOOVFXSFDNH
OLQHUV
±±±±±±± &XSFDNHOLQHUVDUHWKHVKHHWVRIWKLQSDSHUSUHVVHGLQWRDURXQGIOXWHG
$VDOZD\V,MXVWZDQWHGWRWKDQN\RXIRUVXEVFULELQJ7KLVEORJLVD FXSVKDSH/LQHUVFDQIDFLOLWDWHWKHHDV\UHPRYDORIWKHFXSFDNHIURPWKH
VXFFHVVEHFDXVHRI\RXDQG\RXUVXSSRUW+HUH¶VWR\RXURQOLQH WLQDIWHUEDNLQJNHHSWKHFXSFDNHPRLVWHUDQGUHGXFHWKHHIIRUWQHHGHG
VXFFHVV WRFOHDQWKHSDQ7KHXVHRIOLQHUVLVDOVRFRQVLGHUHGDPRUHVDQLWDU\
RSWLRQZKHQFXSFDNHVDUHEHLQJSDVVHGIURPKDQGWRKDQG/LNHFXSFDNH
%HFRPHD)DQRIWKH6PDUW3DVVLYH,QFRPH%ORJRQ)DFHERRNDQGMRLQ SDQVVHYHUDOVL]HVRISDSHUOLQHUVDUHDYDLODEOHIURPPLQLDWXUHWRMXPER
WKHFRQYHUVDWLRQ
0\ZLIHIURPZKRPPRVWRILGHDVFRPHORYHVPDNLQJFXSFDNHVIRU
7KDQN\RXVRPXFK VSHFLDORFFDVLRQVEXWVKHKDWHVVHDUFKLQJWKURXJKKXQGUHGVRIZHEVLWHV
WRILQGMXVWWKHULJKWOLQHUIRUKHUVSHFLDORFFDVLRQ
+RZ:HOO&DQ<RX'HVFULEH<RXU:HEVLWHLQ-XVW7KUHH:RUGV"
<RXFRXOGHLWKHUVWRFNWKHOLQHUV\RXUVHOIHQWHULQWRDIILOLDWH
5HODWHGSRVWV UHODWLRQVKLSVZLWKRWKHUZHEVLWHVWKDWVHOOEDNLQJVXSSOLHVRUJRWKHGURS
VKLSSLQJURXWH:KDWHYHU\RXFKRRVH\RXZRQ¶WEHKXUWLQJIRU
'LVFRYHU+RZ)DFHERRN&DQ6QRZEDOO7UDIILFWR<RXU:HEVLWH FXVWRPHUVEHFDXVHFXSFDNHVDUHELJEXVLQHVV
+RZWR*HWWKH0RVW2XWRI<RXU&XVWRP:HEVLWHRU%ORJ'HVLJQHU (YHQLQDEDGHFRQRP\WKHSURILWVDUHVZHHWIRUDVSHFLDOL]HG
EXVLQHVVWKDWFDWHUVWRNLGVRIDOODJHV%DNHULHVDFURVV1HZ
+RZWR%RRVW%ORJDQG:HEVLWH7UDIILFZLWK$UWLFOH0DUNHWLQJ <RUNDQGWKHUHVWRIWKHFRXQWU\DUHILQGLQJRXWWKDWFXSFDNHV
FDQHTXDOFDVK
+RZWR'HWHUPLQHWKH%(675HYHQXH6KDULQJ:HEVLWHWR:ULWH
)RU
.QRZ:KDW0DNHV<RX6WDQG2XW)URPWKH&URZGDQG³0LONLW´

%86,1(6623325781,7,(6:(%/2* WKDW³%LJ%R[HV´DUHEHWWHUIRUWKHEXVLQHVVHQYLURQPHQWWKDQ\RXUOLWWOH
VWRUHS[L,FDOOWKDWWKH³3KRWR2S7KHRU\RI(FRQRPLF'HYHORSPHQW´
(FRQRPLHVRI6FDOHDQG ,QWKLVFDVH\RXUWD[PRQH\SOXVD%LJ%R[JHWWLQJDKDQGRXW WKHLU
SKRWRRS,¶OOEHW\RXFRXOGFKDUJHOHVVWRRLIWKHWD[SD\HUVZHUHSD\LQJ
%XVLQHVV6WDUW8S \RXUUHQWPRUWJDJH
-8/30
<RX¶OOKDYHWRUHDGWKHUHVWRIWKHERRNIRURWKHULOOXVWUDWLRQVRIKRZ
SROLWLFLDQVIXQGWKH%LJ%R[HVE\SROLF\DQGWKHQDUHKHOGKRVWDJHWR
WKHLUHYHU\ZKLPIRUIHDURIORVLQJWD[GROODUVEXW\RXVHHWKHSRLQW<RX
FRXOGVHOOWKLQJVIRUOHVVWRRLIXVLQJWKHH[DPSOHDERYHVRPHRQHSDLG
DOORI\RXUPRUWJDJHRUUHQW
2QHOHJLWLPDWHZD\WKDW³%LJ%R[HV´VHOODWORZHUSULFHVLVWKDWWKH\FDQ
EX\LQYROXPH
$QGKRQHVWO\WKDW¶VVRPHWKLQJPRVWVPDOOORFDOEXVLQHVVHVZRQ¶WEH
DEOHWRGRQRPDWWHUKRZKDUGWKH\WU\
6RZKDW¶VDSRVVLEOHVROXWLRQWRWKDW"
2IFRXUVHWKHUHDUH³EX\ORFDO´FDPSDLJQVWKDWGRZRUN%XWLQWRXJK
HFRQRPLFWLPHVSHRSOHVWLOOZDQWWRZDWFKWKHLUPRQH\$WVRPHSRLQW
WKH\PD\QRWOLNHWKH%LJ%R[VWRUHEXWWKH\ZRQ¶WSD\GRXEOH
7KHERRN%LJ%R[6ZLQGOH7KH7UXH&RVWRI0HJD5HWDLOHUVDQGWKH)LJKW
IRU$PHULFD¶V,QGHSHQGHQW%XVLQHVVHVUDLVHVLPSRUWDQWTXHVWLRQVDQG +RZFDQORFDOUHWDLOHUVSRVVLEO\EHJLQWRDFKLHYHVRPHHFRQRPLHVRI
VXJJHVWVVRPHLQWHUHVWLQJLGHDVWKDWVKRXOGEHRILQWHUHVWWRZRUNDW VFDOHDQG³ILJKWEDFN´
KRPHHQWUHSUHQHXUVZKRVWUXJJOHWRRYHUFRPHWKH³%LJ%R\V¶´HFRQRPLHV
RIVFDOH +HUH¶VRQHRSWLRQ&RPPXQLW\2ZQHG6WRUHV$FRPPXQLW\FRXOG
FUHDWHLWVRZQ³'HSDUWPHQW6WRUH´DVDORFDOFRPPXQLW\FRUSRUDWLRQ
7KHPDLQDUJXPHQWDJDLQVWWKH³%LJ%R[´DQGLW¶V³ORZORZSULFHV´LVWKDW 127UXQE\WKHJRYHUQPHQWEXWQRWRSSRVHGE\ORFDOSROLWLFLDQVDQG
ZKLOHWKHFRVWDWWKHFDVKUHJLVWHUPD\VHHPORZWKHUHDUHDKRVWRI WKHLUSROLFLHVHLWKHU/RFDOSHRSOHRZQWKHVWRFNWDNHWKHSURILWVDQG
³XQVHHQFRVWV´DVVRFLDWHGZLWKWKDWORZSULFH KDYHWKHDELOLW\WREX\LQJUHDWHUTXDQWLW\
)RULQVWDQFHZHLPPHGLDWHO\UHFRJQL]HWKDWLIVRPHRQHRIIHUVWRVHOOXV $VHULHVRI&RPPXQLW\2ZQHG6WRUHVLQDVWDWHRUUHJLRQFRXOGHYHQ
JDVROLQHIRUSHUJDOORQZKHQWKHSUHYDLOLQJUDWHLVDERXWSHUJDOORQ FUHDWHEX\LQJXQLWVIRUORZHUFRVWVDQGVDYLQJVRQGLVWULEXWLRQ
HYHU\ZKHUHHOVHDFURVVWKHZKROHQDWLRQWKDW³VRPHWKLQJ¶VZURQJ´2QH
JDVVWDWLRQUDQDFHQWSHUJDOORQVDOHDVDPDUNHWLQJJLPPLFNZLWKWKH :KLOHZH¶UHDWLWZK\FRXOGQ¶WQRQFRPSHWLQJORFDOEXVLQHVVHVKDYH
SULFHSHUJDOORQVXEVLGL]HGE\DQDGYHUWLVHU SDUWQHUVKLSUHODWLRQVKLSVZLWKWKHFRPPXQLW\VWRUHWKDWDOORZWKHPWR
PDNHSXUFKDVHVWKURXJKWKHVWRUH¶VSXUFKDVLQJV\VWHP
%LJ%R[6ZLQGOHFRQWHQGVWKDWWKH³%LJ%R[´VWRUHVRIIHUORZHUSULFHV
WKURXJKVXEVLGLHVQRWRUGLQDULO\DYDLODEOHWRWKHVPDOOORFDOEXVLQHVVHV 7KDWPHDQV\RXUZRUNDWKRPHEXVLQHVVFRXOGEHDSDUWQHUDQGEX\
WKDWWKH\GULYHRXWRIEXVLQHVV RIILFHVXSSOLHVWKURXJKWKHFRPPXQLW\RZQHGVWRUH"
$ZKROHVHULHVRIPRQH\VDYLQJ³HFRQRPLHVRIVFDOH´RSHQXSWKDWZRXOG
3DUWRIWKHLUSRZHULVLQEHLQJDEOHWRVSUHDGWKHLUFRVWVQDWLRQZLGHVR DOORZEXVLQHVVHVWRSDUWQHUWRJHWKHULQDFRPPXQLW\WRUHGXFHRYHUKHDG
ZKHQORFDOVPDOOEXVLQHVVZDVIHDUIXOIRULQVWDQFHRIZKDW³2EDPDFDUH´ DQGLQFUHDVHSURILWDELOLW\ZKLOHRIIHULQJWKHFLWL]HQU\FRPSHWLWLYHSULFHV
ZRXOGGRWRWKHLUHPSOR\HHSD\UROOFRVWV:DO0DUWFRXOGVXSSRUWWKH $WWKHHQGRIWKHGD\WKRXJKDOOWKHSURILWVZRXOGUHPDLQLQWKH
OHJLVODWLRQNQRZLQJWKDWWKH\FRXOGDFFRPPRGDWHLWDQGWKDWLWZRXOG FRPPXQLW\QRWVKLSSHGRXWWRDFRUSRUDWHKHDGTXDUWHUVVRPHZKHUH«
NHHSRWKHUFRPSHWLWRUVIURPVHL]LQJSDUWRIWKHLUPDUNHWVKDUH
$QH[DPSOHRIVXEVLGLHVWKDWHQDEOH%LJ%R[HVWRFRPSHWHDJDLQVWORFDO
FKDLQVDUHIRULQVWDQFHVWDWHWD[ORRSKROHVWKDWJLYHFKDLQVWRUHVWD[
DGYDQWDJHV\RXUVROHSURSULHWRUVKLSGRHVQ¶WKDYHS[2QHFKDLQDORQH
KDGUHFHLYHGD%,//,21GROODUVLQWD[VXEVLGLHVIURPWKHSXEOLFWLOO
EHFDXVHSROLWLFLDQV³WKLQN´\HV,UHFRJQL]HWKDW¶VXVXDOO\DQR[PRURQ

%86,1(6623325781,7,(6:(%/2*
%DFNWR6FKRROWR%H%LJ
-8/30
3RZHUHG%\L&KDUWV_FUHDWHVKDUHDQGHPEHGLQWHUDFWLYH
FKDUWVRQOLQH
&KDUW%DFNWR&ROOHJH6SHQGLQJ
%DFNWRVFKRROVSHQGLQJLVH[SHFWHGWREHUREXVWWKLV\HDUDVSDUHQWV
7DJV
UHSOHQLVKWKHLUNLGV¶ZDUGUREHVDQGEDFNSDFNVDIWHUWZR\HDUVRIZHDN
GHPDQGIRUVFKRROJHDU
+DYLQJRXWJURZQVKRHVVKLUWVDQGHYHQEDFNSDFNVWKH\¶YH
XVHGWKHODVWWZR\HDUVFKLOGUHQKHDGLQJEDFNWRVFKRROWKLV
\HDUZLOODUULYHLQVW\OH7KH1DWLRQDO5HWDLO)HGHUDWLRQ¶V
&RQVXPHU,QWHQWLRQVDQG$FWLRQV%DFNWR6FKRRO
VXUYH\FRQGXFWHGE\%,*UHVHDUFKIRXQGWKDWWKHDYHUDJH
$PHULFDQIDPLO\ZLOOVSHQGRQFORWKHVVKRHV
VXSSOLHVDQGHOHFWURQLFVFRPSDUHGWRODVW\HDUDQG
FORVHWRWKHLQ7RWDOVSHQGLQJRQVFKRRODJHG
FKLOGUHQLQJUDGHV.LVH[SHFWHGWRUHDFKELOOLRQ
+RZDUH\RXJRLQJWRSURILWIURPWKLVWUHQG"
0RUHFKDUWVDIWHUWKHMXPS
3RZHUHG%\L&KDUWV_FUHDWHVKDUHDQGHPEHGLQWHUDFWLYH
FKDUWVRQOLQH
&KDUW%DFNWR6FKRRO6SHQGLQJ
7DJV

%86,1(6623325781,7,(6:(%/2* 8VHG%RRNV,QWR*ROG
1HZ%L]RS&ODVVLILHG$GV7KLV :DQWWRJHW\RXUEL]RSSURJUDPSURGXFWRUDQQRXQFHPHQWRXWWRRXU
:HHN
-8/30
%86,1(6623325781,7,(6:(%/2*
6RDSFRP/DXQFKHV
-8/30
'LUHFWYVW0RQWK)UHH6HUYLFH:LWK'LUHFWY
1RDKV$UN$QLPDO:RUN6KRS
1RDKV$UN$QLPDO:RUNVKRS
&RPPLVVLRQ3HU6DOH
&RUUHFWHG±0DNH0RQH\:LWK$VKPD[
7KHIRXQGHUVRI'LDSHUVFRPWRGD\ODXQFKHG6RDSFRPDQHZUHWDLO
FRUUHFWHG±&DQ<RX7DNH$6LPSOH3KRWRJUDSK"
ZHEVLWHIRUKRXVHKROGSURGXFWVYLWDPLQVWROLHWSDSHUDQGZHOOVRDSDW
FRPSHWLWLYHSULFHVRYHUWKHLQWHUQHW
*HW3DLG7R7UDYHO
,NQRZWKDWP\ZLIHKDVEHHQH[FLWHGO\DZDLWLQJWKHODXQFK6KH¶VDELJ
:HE5HVHDUFKHU±*HW3DLG7R6XUI
'LDSHUVFRPIDQLVKRSHIXOWKDWORZSULFHVIURP6RDSFRPZLOOPHDQWKDW
VKHQHYHUKDVWRPDNHWKHWKUHHKRXUWULSWR7DUJHWRU:DOPDUWHYHU
&DQ<RX7DNH$6LPSOH3KRWRJUDSK"
DJDLQIRUVRDS
2OG)DVKLRQHG/HWWHU:ULWLQJ3D\V9HU\:HOO
4XLGVL,QFWRGD\ODXQFKHG6RDSFRPDQHZRQOLQHVWRUH
IHDWXULQJDIXOOUDQJHRIHYHU\GD\HVVHQWLDOV4XLGVLLVWKH
%XVLQHVV2SSRUWXQLW\
SDUHQWFRPSDQ\RI'LDSHUVFRPWKHZRUOG¶VIDVWHVWJURZLQJ
HFRPPHUFHVLWH:LWKWKHODXQFKRI6RDSFRPFRQVXPHUV
6DYH2YHU2Q<RXU3ULQWLQJ&RVWV
FDQQRZIRUJRWULSVWRWKHVWRUHE\YLVLWLQJRQHRQOLQH
GHVWLQDWLRQIRUHYHU\WKLQJIURPEDVLFKRXVHKROGLWHPVOLNH
*OREDO%XVLQHVV1HWZRUNLQJ6LWH
WRLOHWSDSHUDQGGHWHUJHQWWRKDUGWRILQGLWHPVOLNHVSHFLDOW\
PRLVWXUL]HUVYLWDPLQVDQGDIXOOUDQJHRIPDNHXSDQG
0DNH0RQH\2QOLQH:LWK$VKPD[
EHDXW\SURGXFWV²DOODWSULFHVXSWRSHUFHQWOHVVWKDQ
PRVWGUXJVWRUHVDQGZLWKIUHHWZRGD\VKLSSLQJ
+HOS6HQLRUV:LWK$6HQLRU(UUDQG6HUYLFH
:LWKPRUHWKDQSURGXFWVIURPPRUHWKDQEUDQGV
)LHOG,QVSHFWRUV(DUQ'ULYHE\3URILWV
DFURVVDZLGHUDQJHRIKHDOWKEHDXW\SHUVRQDOFDUHDQG
KRXVHKROGFDWHJRULHVWKHODXQFKRI6RDSFRPZLOOZHLJKLQDV
*URZLQJ+HUEV)RU3URILW
RQHRIWKHELJJHVWLQUHWDLOKLVWRU\7RSXWWKLVLQFRQWH[WWKH
DYHUDJHRIIOLQHGUXJVWRUHKDVMXVWLWHPV6RDSFRP

ZLOORIIHUPRUHWKDQSURGXFWVE\WKHHQGRIDQG *52:1837+,1.,1*
PRUHWKDQE\WKHHQGRI
$QLPDO&UDFNHUV*HW
)DVKLRQDEOHIRU&DXVH
-8/30
%86,1(6623325781,7,(6:(%/2*
%DOO6WDUV
-8/30
,FDPHDFURVVDER[RI%DUQXP¶V$QLPDO&UDFNHUVWKHRWKHUZHHNDWD
WUDLQVWDWLRQLQ'HODZDUHDQGLPPHGLDWHO\QRWLFHGWKHSDFNDJLQJ
RYHUKDXO7RFHOHEUDWHWKH<HDURIWKH7LJHU/LOO\3XOLW]HUKDVWHDPHGXS
ZLWK1DELVFR%DUQXP¶V$QLPDO&UDFNHUVWRFUHDWHVSHFLDOSDFNDJLQJWR
%DOO6WDUVLVDVSRUWVDIILOLDWHGEXVLQHVVWKDWXVHVDSURSULHWDU\ VXSSRUWWKH::)ZLWKDJRDOWRUDLVH.WRVDYHWKH6XPDWUD7LJHUV
WHFKQRORJ\WRUHSURGXFHIXOOFRORULPDJHVRQVSRUWVSDUDSKHUQDOLDVXFK
DVEDVHEDOOVVRFFHUEDOOVEDVHEDOOVKRFNH\SXFNVYROOH\EDOOVDQG :K\LVWKLVLQWHUHVWLQJ")RURQHLWVDQROGHUEUDQGWKDWLVJHWWLQJD
IRRWEDOOV,QDGGLWLRQWRWKHVSRUWVEDOOVWKHSKRWRJUDSKVFDQDOVREH IDVKLRQDEOHIDFHOLIW7KURXJKSDUWQHULQJZLWKDPRGHUQQDWLRQDOO\
DSSOLHGWRRWKHUFXUYHGVXUIDFHVDQGPDWHULDOV NQRZQIDVKLRQEUDQGWKH\DUHGHILQLWHO\DSSHDOLQJWRPRPVEXWDOVR
PDNLQJDFDXVHFRQQHFWLRQEHWZHHQWKHLUDQLPDOFUDFNHUVDQGUHDOZRUOG
/LFHQVLQJD%DOO6WDUVEXVLQHVVRIIHUVSOHQW\RIRSSRUWXQLWLHVWRFDSLWDOL]H DQLPDOVZKLFKFDQEHDJUHDWHGXFDWLRQHOHPHQWIRU\RXQJNLGV,QVKRUW
RQWKHORFDOVSRUWLQJLQGXVWU\IURPWKHSURIHVVLRQDOZRUOGRIVSRUWV WKHSURGXFWKDVDUHDOHGXFDWLRQDOHIIHFWRQ\RXQJFKLOGUHQDQGFDQWHDFK
WHDPVWRWKHORFDOFKLOGUHQ¶VOHDJXHLQWKHFRPPXQLW\WKH%DOO6WDUV WKHPDERXWHQGDQJHUHGVSHFLHVFDXVHV)XUWKHUPRUHWKH\DUHLVVXLQJ
RSSRUWXQLW\LVDSRSXODUDQGVWLOOIDVWJURZLQJVSRUWVEXVLQHVVWKDW RQHPLOOLRQRIWKHVHOLPLWHGHGLWLRQER[HVVRWKHFDPSDLJQKDVVRPH
DOORZV\RXWRFUHDWHKLJKTXDOLW\SHUVRQDOL]HGSURGXFWVEDVHGRQWKH GHFHQWVFDOHWRLW
QHHGVRI\RXUFXVWRPHUVZLWKDSURILWRQDYHUDJHRISHUVSRUWVEDOO
2QWRSRIDOOWKDWLW¶VDQXQH[SHFWHGFROODERUDWLRQZKLFKLVZKDWPDNHV
7KH%DOO6WDUV+HDW7UDQVIHU6\VWHPVLVVROGDVDFRPSOHWHWXUQNH\ LWJUHDW,ORYHVHHLQJEUDQGVOLNHWKLVSDUWQHUXSIRUWKHSXUSRVHRID
EXVLQHVVRSHUDWLRQ7KHEXVLQHVVFDQEHRSHUDWHGIURPKRPHZLWKWKH FRPPRQFDXVH2YHUDOOLWIHHOVJHQXLQH/LOO\3XOLW]HULVLVVXLQJDQLPDO
RSSRUWXQLW\WRH[SDQGWRDWUDYHOLQJEXVLQHVVRUDSHUPDQHQWUHWDLOVWRUH SULQWVDVSDUWRIWKHLUOLQHWKLVVHDVRQWRVXSSRUW:LOGOLIHVRWKH
RUNLRVN HOHPHQWVDOOWLHLQZHOOZLWKRXWIHHOLQJIRUFHGRUOLNHDVHOORXW
:HQHHGWRHQFRXUDJHPRUHPDVVEUDQGVWRVWHSRXWRIWKHLUFRPIRUW
]RQHVDQGSUHGLFWDEOHSDWWHUQV7KH\VKRXOGEHHQWHULQJQHZVSDFHV
LQLWLDWLQJXQOLNHO\FROODERUDWLRQVDQGXVLQJWKHLUUHDFKIRUWKHJUHDWHU
JRRG,¶GORYHWRVHHWKHVHER[HVPDNHWKHLUZD\GRZQWKHUXQZD\RI
)DVKLRQ:HHN:KRNQRZV"7KH\PD\HYHQPDNHJRRGXSF\OFHGSXUVHV
IRUFHOOSKRQHVDQGHVVHQWLDOV
6RZKDWXQH[SHFWHGEUDQGFROODERUDWLRQVKDYHFDXJKW\RXUH\HWKHVH
GD\V"/HDYHDFRPPHQWDQGOHWXVNQRZ

%86,1(6623325781,7,(6:(%/2* %86,1(6623325781,7,(6:(%/2*
5D\&KDUOHV¶&RS\ULJKWV$ (QWUHSUHQHXU7KLQNV2XWVLGH
/XFUDWLYH%L] 7KH6SD%R[
-8/30 -8/30
:LWKDOORIWKHURFNLQJFKDLUVDQGDQWLTXHIXUQLWXUHVLWWLQJDURXQG
6WHSKDQLH*UHQDGLHU¶VQHZEXVLQHVV\RXPLJKWWKLQNWKLVZDVPRUHOLNHD
FR]\URRPWKDQDPDVVDJHVWXGLR+RZHYHUVKHLQWHQWLRQDOO\DYRLGHG
WKDWVSDOLNHORRNUHSRUWVWKH3DWULRW/HGJHUFRP
³6SDVKDYHDFRQYH\RUEHOWW\SHRIPHQWDOLW\,W¶VOLNHLQDQG
RXW´VKHVDLG³<RXGRQ¶WJRWRDVSDWRKDQJRXWDQGGULQN
0XVLFOHJHQG5D\&KDUOHVFDSLWDOL]HGRQPXVLFSXEOLVKLQJDQJOHKH
WHDLQDURFNLQJFKDLU´
EHJDQUHFRUGLQJDORWRISXEOLFGRPDLQVRQJVOLNH³$PHULFD7KH
%HDXWLIXO´DQG³/LIW(YHU\9RLFHDQG6LQJ´ZKHUHKHSXEOLVKHGWKH
$W(QHUJ\0DWWHUV*UHQDGLHURIIHUVVWDQGDUGPDVVDJH
DUUDQJHPHQW
RSWLRQVVXFKDV6ZHGLVKKRWVWRQHGHHSWLVVXHDQG
UHIOH[RORJ\%XWVKHDOVRSUDFWLFHVHQHUJ\KHDOLQJXVLQJ5HLNL
5HXWHUVUHSRUWVWKDWWRGD\WKH5D\&KDUOHV0DUNHWLQJ*URXSUHSUHVHQWV
DQGSRODULW\WHFKQLTXHV&KULVWLQH-DPLHVRQZKRDOVRZRUNV
DERXWVRQJVIURPWKRVHFRPSDQLHVLQFOXGLQJDERXWDGR]HQ&KDUOHV
RXWRI(QHUJ\0DWWHUVRIIHUVKHDOWKFDUGUHDGLQJVZKLFKFDQ
ZURWHDQGDQRWKHURUZKHUHKHLVFUHGLWHGDVFRZULWHU,WDOVR
EULQJHPRWLRQDOLVVXHVWRWKHVXUIDFH
UHSUHVHQWVRIKLVVRQJVZKHUHLWFDQOLFHQVHERWKWKHVRQJVDQGWKH
PDVWHUZKLFKLWLVPDNLQJDYDLODEOHWRILOPSURGXFHUVGLUHFWRUVDQG
%RWK5HLNLD-DSDQHVHWHFKQLTXHDQGSRODULW\GHYHORSHGE\
DGYHUWLVLQJDJHQFLHV
DQ$XVWULDQ$PHULFDQGRFWRULQWKHVDUHPDVVDJH
WHFKQLTXHVEDVHGRQWKHEHOLHIWKDWDEDODQFHGIORZRIHQHUJ\
6LQFHWKHUHOHDVHRIWKH³5D\ÉLRSLF7RQ\*XPLQDSUHVLGHQW
WKURXJKWKHKXPDQERG\LVHVVHQWLDOIRUJRRGKHDOWK
RIWKH5D\&KDUOHV0DUNHWLQJ*URXSVD\VWKDW
V\QFKURQL]DWLRQRI&KDUOHVVRQJVKDVSURYHQOXFUDWLYH%XWKH
³:HGRLWDOOWKHWLPH±ZHWRXFKRXUVHOYHVZKHQZHKXUW´
DOVRVD\VSHUIRUPDQFHUR\DOWLHVDUHRQWKHXSVZLQJWRR
OLNHWRXFKLQJ\RXUKHDGZKHQ\RXKDYHDPLJUDLQHRUD
PRWKHUNLVVLQJKHUFKLOG¶VVFUDSHVKHVDLG
)RUH[DPSOHZKHQ&KDUOHVILUVWSXEOLVKHG³+LW7KH5RDG
-DFN´ZKRFRXOGLPDJLQHWKHXVHVWKDWZRXOGFRPHLWVZD\
&XVWRPHUVFDQFKRRVHWRUHFHLYHWUDGLWLRQDOPDVVDJHZRUNRU
HQHUJ\WKHUDS\DQG*UHQDGLHURIWHQLQFRUSRUDWHVERWK
1RZDGD\VDWDQ\VSRUWLQJHYHQW²ZKHWKHULW¶VDSOD\HU
WHFKQLTXHVLQWKHFXVWRPL]HGVHVVLRQ
IRXOLQJRXWRIDEDVNHWEDOOJDPHDSLWFKHUJHWWLQJSXOOHGIURP
WKHPRXQGDKRFNH\SOD\HUJHWWLQJVHQWWRWKHSHQDOW\ER[²
³,I\RXZDQWGHHSWLVVXH,XQGHUVWDQGWKDW2QWKHRWKHU
ZKHQDSOD\HULVSXOOHGIURPWKHJDPH³+LW7KH5RDG-DFN´
KDQGLI\RXUGHHSWLVVXHZRUNWKDW\RXQHHGGRQHLVGXHWR
ZLOOUHVRXQGRYHUWKH3$V\VWHP
VWUHVVWKHQ,¶PJRLQJWRVD\µ,I\RXUHDOO\ZDQWWKHPDVVDJH
WRODVWWKHQWKHUH¶VJRWWREHVRPHRWKHUNLQGRIZRUNGRQH¶´
3KRWRE\SKRWREXFNHW
VKHVDLG
3KRWRE\1LFN-:HEE

%86,1(6623325781,7,(6:(%/2*
6SRUWV&RYHUDJH)URP)DQV
%86,1(6623325781,7,(6:(%/2* -8/30
1DWXUDO%HG&R
-8/30
$IWHUVHOOLQJPDWWUHVVHVIRU\HDUVDQGIRXQGLQJDQVWRUHFKDLQRI
PDWWUHVVVWRUHV-HUU\:LOVRQNQHZDWKLQJRUWZRDERXWPDWWUHVVHV
:KHQKHQRWLFHGDKXJHLQFUHDVHLQWKHQXPEHURIFKHPLFDOVLQWKH
PDWWUHVVKHVROG-HUU\:LOVRQWKRXJKWKH¶GUHDOL]HGWKDWWKHUHZDVD
PDUNHWIRUVRPHWKLQJGLIIHUHQW
$IWHUPRQWKVRIUHVHDUFKDQGWHVWLQJQHDUO\HYHU\W\SHRIFKHPLFDOIUHH
DOOQDWXUDOODWH[PDWWUHVVPDGHLQLQWKH8QLWHG6WDWHVKHVWDUWHG 'DYLG1HPHW]DQGKLVKLJKVFKRROEXGVJUHZXSLQ6LOLFRQ9DOOH\JHWWLQJ
1DWXUDO%HG&RDQGEHJDQVHOOLQJRQOLQH WKHLUVSRUWVLQIRIURP(631FRP%XWWKHPDLQVWUHDPVLWHZDVZHOO
PDLQVWUHDP
:KHUHWKH\PXWWHUHGZHUHWKHUHSRUWVRQPL[HGPDUWLDO
DUWV"6RDIWHUFROOHJHWKHIRXUVRPHSRROHGFORVHWR
IURPWKHLUIDPLOLHVWRKLUHVRIWZDUHGHYHORSHUVWRFUHDWHDQ
³RSHQVRXUFHÍRUXPZKHUHIDQMRXUQDOLVWVFRXOGEORJDERXW
DQ\VSRUWWKH\OLNH
)RXUPRQWKVDIWHULWVRIILFLDOODXQFKODVW)HEUXDU\%OHDFKHU
5HSRUWDQGLWVZULWHUVKLWPLOOLRQXQLTXHYLVLWRUVLQD
PRQWKUHSRUWV%ORRPEHUJ%XVLQHVVZHHN
%OHDFKHU5HSRUWLVPRUHWKDQDPHVVDJHERDUG7REULQJ
FRYHUDJHDERYHXQILOWHUHGUDPEOLQJVWKHVLWH¶VWHFKWHDP
GHVLJQHGDQDOJRULWKPWKDWHPSOR\VUHDGHUUDWLQJVWROLIW
KLJKHUTXDOLW\FRQWULEXWLRQVWRWKHWRSRIWKHSDJH
+HDULQJDERXWDOOWKHVHFKHPLFDOVLVDOPRVWHQRXJKWRPDNHPHZDQWWR $OVRDQHGLWRULDOVWDIIRIILYHVFUHHQVHYHU\SRVW,Q-XQH)R[
VOHHSRQWKHIORRU 6SRUWV1:6EHJDQFDUU\LQJ%OHDFKHU5HSRUWFRQWHQW
1DWXUDO%HG&RLVQRZVHHNLQJRWKHUVWRRSHQWKHLURZQ1DWXUDO%HG&R 1HPHW]ZKRKDGZRUNHGDWD/RV$QJHOHVWDOHQWDJHQF\VD\V
VWRUHRUEHFRPHDSDUWQHUZLWKWKHPLQFHUWDLQDUHDVWRH[SDQG UHYHQXHLVVWLOOPHDJHUDQGGRHVQ¶WFRYHUFRVWV%XWWKHVLWH
WKURXJKRXWWKH(DVW&RDVW0LGZHVWDQG6RXWKHUQVWDWHV7KLVORZFRVW KDVDILQDQFLDOFXVKLRQ+LOOVYHQ&DSLWDODQGRWKHUDQJHO
RSSRUWXQLW\DQGLVQ¶WDIUDQFKLVH LQYHVWRUVKDYHIURQWHGLWVHYHUDOPLOOLRQGROODUV
3KRWRE\%OHDFKHU5HSRUW

%86,1(6623325781,7,(6:(%/2* %86,1(6623325781,7,(6:(%/2*
%ULQJLQJ/LIH7R$FWLRQ)LJXUHV 3D\WR6LW"
-8/30 -8/30
0LNH%HOORQIRXQGHURI$FWLRQ6SRUWV7R\V//&ZDVLQVSLUHGZKLOH
VXUILQJWRFUHDWHDWR\WKDWZRXOGDOORZFKLOGUHQWRPLPLFKLVPRYHVRQ
WKHZDWHUUHSRUWV7KH9LOODJH1HZV
³,ZDVULGLQJDZDYHDW0LVVLRQ%HDFKZKHQ,GHFLGHG,ZDQWHGWREH
LQQRYDWLYH,ORRNHGDWHOHFWURQLFVDQGFRPSXWHUVEXW,WKRXJKWWKDWWR\V
ZRXOGEHWKHSHUIHFWRXWOHWIRUPHWRIRFXVRQ,ZDQWHGWRPDNHDVXUIHU
WKDWZRXOGULGHWKHZDYHVDQGFRXOGEHFRQWUROOHGE\ZLUHV´VDLG%HOORQ
DOLFHQVHGJHQHUDOFRQWUDFWRUZKRUHQRYDWHGDQGUHPRGHOHGFXVWRP
KRPHVIRUDOLYLQJ
+RZHYHU%HOORQ¶VRULJLQDOFRQFHSWIRUFUHDWLQJDPLQLDWXUHVXUIHU
ZRXOGQ¶WFRPHWRIUXLWLRQ,QVWHDG%HOORQWXUQHGWRIRFXVLQJRQWKH
SODVWLFDFWLRQILJXUHLQRUGHUWRFUHDWHDQHZIXQWR\WKDWFKLOGUHQRIDOO ,VWKHUHVRPHSODFH\RXFRXOGSXWWKLVSD\WRVLWEHQFKZLWKFRLQ
DJHVZRXOGHQMR\+LVJRDOZDVWRSXWDFWLRQLQWRDFWLRQILJXUHV RSHUDWHGUHWUDFWDEOHVSLNHV"
³$FWLRQILJXUHVGRQ¶WUHDOO\GRDQ\WKLQJ´VDLG%HOORQ³7KH\DUHLQDVWLII ,GRQ¶WWKLQNLW¶OOEHORQJEHIRUHDLUSRUWVDQGPDOOVKDYHVRPHWKLQJOLNH
VWDWLFVWDWH´ WKLV7KH\DOUHDG\KDYHVRPHWKLQJVLPLODUEXWOHVVVSLNH\WRGHWHU
VOHHSLQJ
7RSXWPRUHPRYHPHQWLQWRKLVQHZILJXULQHSURWRW\SH%HOORQ
GLVDVVHPEOHGDLQFKDFWLRQILJXUHDQGSODFHGVSULQJVLQEHWZHHQWKH
MRLQWVDQGZLUHVLQVLGHWKHSODVWLFOLPEV:KLOHWKHSURWRW\SHKDGPRUH
PRYHPHQWLWZDVHDVLO\EURNHQ
³,QRUGHUWRDOORZWKHILJXUHWRIOLSDQGVSLQDVNDWHERDUG,KDGWR
FRQWUROLWVWUDLJKWIURPWKURXJKWKHWRSRIWKHWR\´H[SODLQHG%HOORQ %86,1(6623325781,7,(6:(%/2*
³)URPKHUH,KDYHWKHPRVWFRQWURO´
'LVDEOHG$GXOWV6HHN7KHLU2ZQ
:LWKWKLVVOLJKWPRGLILFDWLRQ%HOORQ¶VILJXUHFRXOGGRVNDWHUWULFNVWKDW
FRXOGQ¶WEHHDVLO\GRQHZLWKWR\VEHIRUH %XVLQHVVHV
-8/30
'DYLG6KXQNH\LVDXWLVWLFDQGDURXQGWKHVDPHWLPHWKHUHFHVVLRQKLWKH
ORVWWZRMREV1RZKH¶VWU\LQJWRODXQFKKLVRZQEXVLQHVVUHSRUWV7KH
:DOO6WUHHW-RXUQDO
0RUHPHQWDOO\DQGSK\VLFDOO\FKDOOHQJHGDGXOWVDUHORRNLQJ
WRHQWUHSUHQHXUVKLSDVWKH\JHWFORVHGRXWRIDQH[FHSWLRQDOO\

FRPSHWLWLYHMREPDUNHWDFFRUGLQJWRVHYHUDORUJDQL]DWLRQV 2QWKH$LU
WKDWKHOSWKHGLVDEOHGLQFOXGLQJ&RPPXQLW\2SWLRQV,QFD
QRQSURILWEDVHGLQ3ULQFHWRQ1-RIZKLFK0U6KXQNH\LVD 0DUU\LQJ7ZLWWHU<RX7XEHDULVLQJ79SHUVRQDOLW\DQGDKRW
PHPEHU%XWLQDQHFRQRPLFFOLPDWHWKDW¶VEHHQWRXJKRQ DGFDPSDLJQDOOLQRQH2OG6SLFHPDGHDXQLTXHRQOLQH
HQWUHSUHQHXUVWKHGLVDEOHGDUHQRH[FHSWLRQDQGPDQ\IDFH VSODVKWKLVZHHNE\SRVWLQJQHDUO\YLGHRVKRUWVLQRQH
H[WUDFKDOOHQJHV GD\DQGDSSUR[LPDWHO\GRXEOHWKDWRYHUWKHHQWLUHWKUHHGD\
SHULRGRIWKHSURMHFWWKDWGLUHFWO\UHVSRQGHGWRWZHHWVIURP
³,W¶VPRUHGLIILFXOWIRUVRPHRQHOLNH'DYLGWRREWDLQDQRUPDO FHOHEULWLHVDQGWKHXQNQRZQDOLNH
MRE´VD\V+HDWKHU*RRFKRQHRIVHYHUDO&RPPXQLW\2SWLRQV
ZRUNHUVKHOSLQJ0U6KXQNH\EXLOGDGRJWUHDWEXVLQHVVZLWK :DWFKRQHRIWKHFRUQ\EXWYHU\KLJKO\YLHZHG³FRPPHUFLDOV´DIWHUWKH
DQVWDWHJUDQWIURP1HZ0H[LFRZKHUHKLVHQWHUSULVHLV MXPS
EDVHG³+HQHHGVFORVHVXSHUYLVLRQ´
(PSOR\PHQWRSSRUWXQLWLHVKDYHKLVWRULFDOO\EHHQVFDUFHIRU
WKHGLVDEOHG7ZHQW\\HDUVDJRWKLVPRQWK&RQJUHVVHQDFWHG
WKH$PHULFDQVZLWK'LVDELOLWLHV$FWEDUULQJHPSOR\HUVIURP
GLVFULPLQDWLQJDJDLQVWTXDOLILHGMREDSSOLFDQWVZLWK
GLVDELOLWLHV/DVW\HDUDORQHPRUHWKDQFODLPVZHUH
ILOHGZLWKWKH(TXDO(PSOR\PHQW2SSRUWXQLW\&RPPLVVLRQ %86,1(6623325781,7,(6:(%/2*
DJDLQVWHPSOR\HUVDFFXVHGRIYLRODWLQJWKHODZ
1HZ8QLYHUVLW\3DWHQWV
:LWKWKHSRRUHFRQRP\IXUWKHUUHVWULFWLQJHPSOR\PHQW
RSWLRQVIRUWKHGLVDEOHGVRPHRUJDQL]DWLRQVDUHVHHLQJ 'DWDEDVH
LQFUHDVHGLQWHUHVWLQSURJUDPVGHVLJQHGWRDVVLVWWKLVJURXS -8/$0
LQVWDUWLQJEXVLQHVVHV
3KRWRE\$XJDSIHO
%86,1(6623325781,7,(6:(%/2*
2OG6SLFH*X\7DNHV2YHUWKH
,QWHUQHW
-8/30
$FFRUGLQJWR7KH3DWHQW/LEUDULDQ¶V1RWHERRN)UHH3DWHQWV2QOLQHKDV
SDUWQHUHGZLWK7HFKQRORJ\7UDQVIHU7DFWLFVDZHEVLWHIRUXQLYHUVLW\WHFK
WUDQVIHUSURIHVVLRQDOVWRSURYLGHDUHVRXUFHIRUVHDUFKLQJXQLYHUVLW\
RZQHGSDWHQWV
'DWDIRUDERXWXQLYHUVLWLHVPRVWO\$PHULFDQLV

DYDLODEOH&OLFNLQJRQDQDPHRIDXQLYHUVLW\ZLOOUHWULHYHDOLVW
RI86SDWHQWVDQGSXEOLVKHGDSSOLFDWLRQVDVVLJQHGWRWKDW
XQLYHUVLW\
3KRWRE\)UHH3DWHQWV2QOLQH
,WZDVWKHYLUDODGFDPSDLJQ\RXZLVKHG\RXUYLUDODGFDPSDLJQZRXOG
ORRNOLNH

%86,1(6623325781,7,(6:(%/2* QLSSOHLVDELWOLNHWKHYDOYH\RXVHHRQWKHHQGRIDKDPVWHU
ZDWHUERWWOH²LWRQO\OHWVZDWHURXWZKHQWKHDQLPDOSHFNVRU
$XWRPDWLF:DWHUHU.HHSV)UHVK OLFNVRQLW7KHJUHDWWKLQJDERXWRXUDXWRPDWLFFKLFNHQ
ZDWHUHULVWKDWLWVROYHVDSUREOHPEDFN\DUGFKLFNHQNHHSHUV
:DWHU)ORZLQJ)RU&KLFNHQV KDWH&KLFNHQVDUHQ¶WWKHZRUOG¶VFOHDQHVWDQLPDOVDQGWKH\
-8/$0 WKLQNQRWKLQJRISHUFKLQJRQWRSRIWUDGLWLRQDOZDWHUHUVDQG
SRRSLQJLQWKHUHVHUYRLUWKHQGULQNLQJWKHILOWK\OLTXLG
%HIRUH0DUNFDPHXSZLWKRXUDXWRPDWLFFKLFNHQZDWHUHUZH
ZHUHFKDQJLQJRXUFKLFNHQV¶ZDWHUVHYHUDOWLPHVDGD\WR
SUHYHQWWKHEXLOGXSRIIHFDOPDWWHU7KH$YLDQ$TXD0LVHU
NHHSVLWVZDWHUZLWKLQDVHDOHGUHVHUYRLUVRWKHZDWHUDOZD\V
VWD\VFOHDQDQG,QHYHUKDYHWRGHDOZLWKFKLFNHQSRRS
+RZORQJGLGLWWDNHIRU\RXWRGHVLJQDQGILQHWXQHLWLQWRWKH
SURGXFWLWLVWRGD\"
0DUNVWDUWHGZRUNLQJRQDVROXWLRQRQHGD\ZKHQKHKHDUG
PHRXWVZHDULQJDWWKHFKLFNHQV,KDGSXWP\KDQGRQWRSRI
DSLOHRISRRSGXULQJP\PRUQLQJFKRUHVDQG,ZDVQRW
SOHDVHG,WWRRNKLPPRQWKVRIVHDUFKLQJWRGLVFRYHUWKDWWKH
,I\RX¶YHHYHUOHIWZDWHURXWLQWKHKRWVXQWKHQ\RXNQRZH[DFWO\ZKDWLW ODUJHVFDOHFKLFNHQIDFWRULHVKDGEHHQXVLQJFKLFNHQQLSSOHV
ORRNVDQGVPHOOVOLNHE\WKHHQGRIWKHGD\)UHVKZRQ¶WH[DFWO\GHVFULEH IRU\HDUVWKHQDIHZPRUHPRQWKVWRILJXUHRXWDZD\WR
ZKDW\RX¶OOILQG3XWWKDWVDPHFRQWDLQHURIZDWHULQWR\RXUFKLFNHQ WUDQVIHUWKHLQQRYDWLRQWRWKHEDFN\DUGOHYHO(YHQDIWHUZH
KRXVHDQGWKHQVHHZKDWDOVRJHWVLQWRLW,WZDVGXULQJRQHSDUWLFXODUO\ UROOHGWKHSURGXFWRXWZHNHSWILQHWXQLQJLWIRUWKHILUVW\HDU
IUXVWUDWLQJGD\ZKLOHRXWIHHGLQJDQLPDOVWKDW$QQD+HVVDQGKHU RUVROLVWHQLQJKDUGWRFXVWRPHUIHHGEDFN6R,JXHVV\RX
KXVEDQG0DUNZHUHLQVSLUHGWRILQGDQHZZD\WRZDWHUWKHLUFKLFNHQV FRXOGVD\LWWRRNXVPRQWKVWRGHYHORSLWDOWKRXJKZH
$IWHUD\HDUDQGDKDOIRIGHVLJQUHVHDUFKDQGFXVWRPHUIHHGEDFNWKH\ ZHUHQ¶WIRFXVLQJVROHO\RQWKHLQYHQWLRQWKDWZKROHWLPH
KDYHFUHDWHGDUHDVRQDEO\SULFHGDOWHUQDWLYHFDOOHG7KH$YLDQ$TXD0LVHU
WKDWDOOEDFN\DUGFKLFNHQRZQHUVFDQDSSUHFLDWH +RZPXFKGRHVLWFRVW"
+RZHYHUWKH\DUHQRWOLPLWHGWRLQQRYDWLRQWKH\¶UHDOVRDXWKRUV7KHLU :HVHOOGRLW\RXUVHOINLWVVWDUWLQJIURPDQGSUHPDGH
ERRN0LFUREXVLQHVV,QGHSHQGHQFHJLYHVPLFRSUHQHXUVDGYLFHRQ ZDWHUHUVVWDUWLQJIURPERWKRIZKLFKFRPHZLWKIUHH
UXQQLQJWKHLURZQEXVLQHVVDQGVWLOOKDYLQJWLPHIRUWKHWKLQJVWKDWUHDOO\ VKLSSLQJ0RVWSHRSOHFKRRVHWKHGRLW\RXUVHOINLWVZKLFK,
PDWWHUWRWKHP KLJKO\UHFRPPHQGDVDFKHDSZD\WRNHHS\RXUFKLFNHQV
K\GUDWHG
3OHDVHWHOOXVDOLWWOHDERXWZKDW\RXGR
:KDWLV\RXUPLFUREXVLQHVVHERRNDERXW"
)LUVWDQGIRUHPRVWZH¶UHIXOOWLPHKRPHVWHDGHUV:HJURZDOO
RIRXURZQYHJHWDEOHVDQGHJJVDQGDUHVWDUWLQJWRJURZRXU 0LFUREXVLQHVV,QGHSHQGHQFH
RZQIUXLWDQGPHDW7KHSUREOHPLVWKDWKRPHVWHDGLQJWDNHV KWWSZZZZHWNQHHFRPPLFUREXVLQHVVGRFXPHQWV
DORWRIWLPHDQGQHLWKHURIXVLVLQGHSHQGHQWO\ZHDOWK\:H HYHU\WKLQJZHOHDUQHGGXULQJWKHILUVW\HDURIRXUFKLFNHQ
DOVROLYHLQ$SSDODFKLDZKLFKLVDYHU\HFRQRPLFDOO\ ZDWHUHUEXVLQHVV:HVWDUWHGWKHEXVLQHVVZLWKQH[WWRQR
GHSUHVVHGSDUWRIWKHFRXQWU\6RRXUFKRLFHVZHUHWRZRUN H[SHULHQFHZKLFKPDGHXVWKLQNWKDWRXUVXFFHVVFRXOGEH
UHODWLYHO\ORZSD\LQJMREVOHDYLQJOLWWOHWLPHWRSXUVXHRXU HDVLO\UHSOLFDWHGE\DQ\RQHHOVHZLWKDVLPLODUZLVKWRHVFDSH
KRPHVWHDGLQJGUHDPVRUPRYHRXWRIWKHDUHD,QVWHDGZH WKHUDWUDFH,KRSHWKDWWKHERRNKHOSVRWKHUSHRSOHVNLSWKH
FUHDWHGDWKLUGRSWLRQVHOOLQJ0DUN¶VFKLFNHQZDWHUHU ILUVWIHZPRQWKVRIIXPEOLQJDURXQGLQWKHGDUNDQGMXPS
LQYHQWLRQRYHUWKHLQWHUQHW%\WDNLQJDGYDQWDJHRIDJOREDO ULJKWWRWKHSDUWZKHUHWKH\¶UHUXQQLQJDVXFFHVVIXO
PDUNHWZH¶UHDEOHWRPDNHPXFKPRUHWKDQWKHPLQLPXP PLFUREXVLQHVV
ZDJHZH¶GEULQJLQE\VHOOLQJWKHVDPHLWHPDWWKHORFDO
IDUPHU¶VPDUNHW &DUHWRJLYHXVDVKRUWH[FHUSWIURPWKHERRN"
:KDWLVWKHDXWRPDWLFFKLFNHQZDWHUHU"+RZGRHVLWZRUN" +HUH¶VWKHILUVWSDJHRIFKDSWHUZKHUHZHVWDUWGLYLQJLQWR
WKHQLWW\JULWW\RIFUHDWLQJDPLFUREXVLQHVV
7KH$YLDQ$TXD0LVHUKWWSZZZDYLDQDTXDPLVHUFRPLV
DQDXWRPDWLFFKLFNHQZDWHUHUEDVHGRQDFKLFNHQQLSSOH7KH :HDOONQRZWKDWLI\RXEXLOGDEHWWHUPRXVHWUDSWKHZRUOG

ZLOOEHDWDSDWKWR\RXUGRRU6RZKDW¶V\RXUPRXVHWUDS" SDWKVSHQGLQJDIHZ\HDUVLQWKH1DY\PDQ\PRUH\HDUV
ZRUNLQJDVDFRSLHUUHSDLUPDQDQGWKHQDIHZ\HDUVZRUNLQJ
7KLQNLQJRIDSURGXFWLGHDPD\EHWKHKDUGHVWVWHSIRUVRPH FRQVWUXFWRQ+HUHDOO\NQRZVZKDWWKHUDWUDFHLVOLNHDQG
IRONVEXWLWZDVWKHHDVLHVWVWHSIRUXV0DUNLVDQHQGOHVV QHYHUZDQWVWRJREDFN
WLQNHUHUZLWKIRXURUILYHSRWHQWLDOLQYHQWLRQVDOZD\VNLFNLQJ
DURXQGLQWKHEDFNRIKLVKHDG%XW\RXGRQ¶WKDYHWREHD 2QWKHRWKHUKDQG,¶YHQHYHUVXEPLWWHGDUHVXPHDQG
SUDFWLFHGLQYHQWRUWRVWDUWDJRRGPLFUREXVLQHVV-XVWIROORZ ZRUNHGDUHDOMRE,WHQGWRFUHDWHSRVLWLRQVRXWRIWKLQDLU
WKHVHWKUHHVLPSOHVWHSVDQG\RX¶OOEHZHOORQ\RXUZD\WR GRLQJZKDW,ORYHDQGVRPHKRZJHWWLQJSDLGIRULW,ZDV
PLFUREXVLQHVVLQGHSHQGHQFH ZRUNLQJIRUDORFDOQRQSURILWZKHQ0DUNVWDUWHGWZHDNLQJ
WKH$YLDQ$TXD0LVHUEXW,ZDVEXUQHGRXWDQGUHDG\WR
&KRRVHVRPHWKLQJXQLTXH VSHQGPRUHWLPHRQWKHIDUP0DUNKDGWKHGUHDPDQG,KDG
2QHRIRXUIDLOHGPLFUREXVLQHVVHVLQYROYHGUXQQLQJDQDWLYH WKHH[SHULHQFHPDNLQJMREVXSDV,JRDORQJ
SODQWQXUVHU\:HILJXUHGWKDWZHFRXOGHDVLO\GLJDIHZ
SODQWVKHUHDQGWKHUHLQRXUDFUHZRRGVVHOOLQJWKHSODQWV :KHUHZRXOG\RXOLNHWRVHH\RXUEXVLQHVVLQWKHQH[W\HDURU
RQ(ED\DQGWKURXJKRXURZQZHEVLWH6RZHVSHQWGD\V VR"
FUHDWLQJDZHEVLWHZLWKILIW\GLIIHUHQWSODQWVRQLWOLVWLQJ
SULFHVZKLFKVOLJKWO\XQGHUFXWVLPLODUEXVLQHVVHV7KHQ0DUN 7KHILUVW\HDU0DUN¶VFKLFNHQZDWHUHUVSDLGWKHELOOVDQGWKDW
VSHQWORQJFROGVSULQJPRUQLQJVFKLSSLQJSDZSDZVDQG ZDVLW1RZWKDWZH¶YHILJXUHGRXWZKDWZH¶UHGRLQJWKH
&KULVWPDVIHUQVRXWRIWKHJURXQG$IWHUVKLSSLQJWKHSODQWV VHFRQG\HDUKDVEURXJKWLQPRUHVDOHVWKDQZHNQRZZKDWWR
ZHKDGWRGHDOZLWKFXVWRPHUVZKRZHUHORRNLQJVRKDUGIRUD GRZLWK:HGRQ¶WPLQGWKHH[WUDPRQH\LQIDFWZH¶UHJRLQJ
EDUJDLQWKDWWKH\ZHUHDQQR\HGWKDWWKHLUSODQWDUULYHG RQDVHFRQGFUXLVHWKLVZLQWHUEXWWKHEXVLQHVVLVVWDUWLQJWR
ZLOWHG WDNHDELWRIWLPHDZD\IURPWKHZHHGLQJ6RZH¶UHVWDUWLQJWR
ORRNLQWRKLULQJVRPHRQHWRGRPRVWRIWKHUHSHWLWLYHZRUN
:KHQ,ILQDOO\GLGWKHPDWK,UHDOL]HGZHZHUHPDNLQJRQO\D EXLOGLQJWKHZDWHUVDQGPDLOLQJWKHPRXW0DUNKDVDERXWD
OLWWOHRYHUPLQLPXPZDJH²RXUQDWLYHSODQWQXUVHU\ZDV GR]HQLQYHQWLRQLGHDVRQWKHEDFNEXUQHUMXVWZDLWLQJIRUD
QHYHUJRLQJWRDOORZXVWROHDYHWKHUDWUDFH7U\LQJWR ELWRIIUHHWLPHWRUROOWKHPRXW+RSHIXOO\E\WKLVWLPHQH[W
XQGHUFXWWKHFRPSHWLWLRQREYLRXVO\ZDVQ¶WWKHEHVWZD\WRJR \HDUZH¶OOKDYHIRXQGWKHSHUIHFWHPSOR\HHDQGZLOOKDYH
,QVWHDGZHUHFRPPHQGWKDWPLFUREXVLQHVVRZQHUVILQGD HYHQPRUHIUHHWLPH
VLQJOHQLFKHSURGXFWZKLFKWKHFRQVXPHUFDQ¶WJHWIURP
DQ\RQHHOVH,IZKDW\RX¶UHVHOOLQJLVXQLTXHRUGLIILFXOWWR
ILQG\RXZRQ¶WKDYHWRGURS\RXUSULFHVWRURFNERWWRPWR
DWWUDFWFXVWRPHUV
'R\RXKDYHDQ\RWKHUHERRNV" '$01,:,6+,¶'7+28*+72)7+$7
:HLQFOXGHDFRXSOHRIFKLFNHQUHODWHGHERRNVZLWKRXU 1HZVOHWWHU7KH³:D\V
FKLFNHQZDWHUHUWRKHOSEHJLQQHUVOHDUQWKHLUZD\DURXQG
FKLFNHQV,¶YHDOVRSXWWRJHWKHUDQHERRNDERXWWKHQDWXUDO WR0DNH<RXU&KDULW\3URMHFW
KLVWRU\RIDORFDOSDUNKWWSZZZFOLQFKWUDLOVFRP
*R9LUDO´,VVXH
:KDWVHSDUDWHV\RXDQG\RXUHERRNIURPWKHFRPSHWLWLRQ" -8/$0
7KHUHDUHGR]HQVRIJHWULFKTXLFNHERRNVRXWWKHUHEXWZH :RUGRIPRXWKLVPRUHWKDQDPDUNHWLQJWHFKQLTXHLW¶VDSRZHUIXOZD\
WDNHDYHU\GLIIHUHQWDSSURDFK,QIDFWZHGRQ¶WZDQWWRJHW IRULPSRUWDQWPHVVDJHVWRVSUHDG:HZHUHVRDPD]HGE\WKHZRUNRI
ULFKDQGZH¶UHQRWZULWLQJIRUSHRSOHZKRGR,QVWHDGRXU FKDULW\ZDWHUZH¶UHPDNLQJWKHPWKHRIILFLDOFDXVHRIRXUXSFRPLQJ
HERRNVKRZVUHDGHUVKRZWRPLQLPL]HWKHWLPHWKH\VSHQGRQ :RUGRI0RXWK6XSHUJHQLXVHYHQWRQ-XO\LQ1HZ<RUN
WKHLUPLFUREXVLQHVVVRWKDWWKH\FDQSXWPRUHWLPHLQWRZKDW
UHDOO\PDWWHUV²OLYLQJWKHLUOLIH <RXFDQVKRZWKHZRUOGZKDWZRUGRIPRXWKFDQGR,QDERXWWZR
PLQXWHV\RXUFDQEULQJFOHDQZDWHUWRRQHSHUVRQIRU\HDUV
:KDWJRW\RXLQWHUHVWHGLQWKLVEXVLQHVV"+DYH\RXDOZD\V KWWSP\FKDULW\ZDWHURUJZRP
EHHQHQWUHSUHQHXULDO"
$QGLI\RX¶UHORRNLQJWREXLOGZRUGRIPRXWKDURXQGDQLPSRUWDQWFDXVH
0DUNWROGPHMXVW\HVWHUGD\WKDWKHZDQWHGWREHDQLQYHQWRU WDNHDIHZQRWHVIURPWKHEULOOLDQWIRONVDWFKDULW\ZDWHU
DWWKHDGYDQFHGDJHRIVHYHQ8QIRUWXQDWHO\KLVSDUHQWV
ZHUHQ¶WNHHQRQWKHLGHDVRKHIROORZHGDPRUHWUDGLWLRQDO !&UHDWHDVKDUHDEOH85/

!5HFRJQL]HWKHRUJDQL]HU 3RVW\RXUVKDUHDEOHFRQWHQWLQZD\VWKDWWDONHUVDUHIDPLOLDUZLWK+RVW
!5HFRJQL]HWKHGRQRUV \RXUYLGHRVRQ9LPHRDQG<RX7XEHSXW\RXUSKRWRVRQ)OLFNUDQG
!6LPSOLI\WKHVWRU\ FUHDWHZHEEDQQHUVLQVWDQGDUGVL]HV
!0DNHLWHDV\WRVKDUH
!*LYHWKHPVWXIIWRVKDUH !7LHLWWRDVRFLDOHYHQW
!/HWWKHPVKDUHLQIDPLOLDUZD\V
!7LHLWWRDVRFLDOHYHQW 8VHHYHU\RSSRUWXQLW\IRU\RXUFDXVHWRSLJJ\EDFNH[LVWLQJHYHQWVDQG
!7XUQJLYHUVLQWRIXQGUDLVHUV WRSLFV&KDULW\ZDWHUOHWV\RXGRQDWH\RXUELUWKGD\²DQDWXUDOO\VRFLDO
!%XLOGDZHOO HYHQW²WRLQYLWHIULHQGVWRFRQWULEXWHWRDZDWHUSURMHFWUDWKHUWKDQJLYH
JLIWV
!&UHDWHDVKDUHDEOH85/
!7XUQJLYHUVLQWRIXQGUDLVHUV
<RXU85/LVKRZSHRSOHZLOOVKDUH\RXUHYHQWRQOLQH%LJFOXQN\RQHV
PDNHLWKDUGWRIRUZDUGVRNHHS\RXUVVKRUWDQGVLPSOH&KDULW\ZDWHU 'RQRUVWR\RXUFDXVHDUHDOLNHO\FURZGWRVWDUWWKHLURZQIXQGUDLVLQJ
PDNHVLWHDV\WRFUHDWH\RXURZQVKRUWGHVFULSWLYH85/IRUH[DPSOH SURMHFW$IWHU\RXGRQDWHWRDFKDULW\ZDWHUSDJH\RX¶UHLPPHGLDWHO\
RXUVLVKWWSP\FKDULW\ZDWHURUJZRP RIIHUHGWKHFKDQFHWRVWDUW\RXURZQIXQGUDLVHU,QOHVVWKDQWZRPLQXWHV
DQGLQDERXWWZRFOLFNVVRPHRQHFDQJRIURPGRQRUWRIXQGUDLVHU
!5HFRJQL]HWKHRUJDQL]HU
!%XLOGDZHOO
7KHSHRSOHRUJDQL]LQJHYHQWVWRUDLVH\RXPRQH\DUHHYHU\WKLQJ²PDNH
WKHPIHHOVSHFLDO&KDULW\ZDWHUKHOSVRUJDQL]HUVE\JLYLQJWKHPWKHLU +HOSXVVKRZWKHZRUOGZKDWZRUGRIPRXWKFDQGRFDQJLYHRQH
RZQSDJHWRVHQGIULHQGVWR:KHQ\RX¶UHUHFUXLWLQJGRQRUV\RX¶UHQRW SHUVRQFOHDQZDWHUIRU\HDUV$QGHYHU\SHUVRQ\RXWHOODERXWRXU
VHQGLQJWKHPWRWKH5HG&URVVKRPHSDJHLW¶V\RXUJRDO\RXUQDPHDQG SURMHFWKHOSVEULQJDZHOOWRVRPHIDQWDVWLFFRPPXQLWLHVRQWKHRWKHU
\RXUORJR,W¶V\RXUFDXVH VLGHRIWKHZRUOGWKDWUHDOO\QHHGRXUKHOS
!5HFRJQL]HWKHGRQRU %XLOGDZHOOKWWSP\FKDULW\ZDWHURUJZRP
0DNHGRQRUVIHHOOLNHURFNVWDUV/HWWKHPNQRZKRZPXFKWKHLU
FRQWULEXWLRQPHDQVWR\RXUFDXVHDQGOHWWKHZRUOGNQRZKRZPXFKWKH\ 6KDUH
KHOSHG'RQRUVWRFKDULW\ZDWHUJHWDELJWKDQN\RXPHVVDJHDIWHU
FRQWULEXWLQJDQGWKHLUQDPHLVDGGHGWRDVFRUHERDUGWKDWLQFOXGHVWKHLU
RZQSHUVRQDOPHVVDJH
!6LPSOLI\WKHVWRU\
<RXUVWRU\LV\RXUWRSLF²DQGOLNHDOOZRUGRIPRXWKWRSLFVWKH\VKRXOG %86,1(6623325781,7,(6:(%/2*
EHVLPSOHSRUWDEOHDQGUHSHDWDEOH:LWKFKDULW\ZDWHU\RXUJRDOLVWLHG
WRVSHFLILFQXPEHUVZHOOVYLOODJHVHTXDOV\HDUVZRUWKRI 7KH0DQKROH&RYHU3LFNHU
ZDWHUHWF,WPDNHVLWHDV\WRWDONDERXWDQGHDV\WRVHHZKDWD
GLIIHUHQFHHYHQDWLQ\GRQDWLRQFDQPDNH 8SSHU
-8/$0
!0DNHLWHDV\WRVKDUH
)HZHUVWHSVEHWZHHQ\RXUGRQRUVDQGWKHLUVRFLDOQHWZRUNVPHDQV\RXU
FDXVHLVPRUHOLNHO\WRJRYLUDO&KDULW\ZDWHUXVHVVLPSOHRQHFOLFN
EXWWRQVWRVKDUHZLWK7ZLWWHU)DFHERRNDQGWRHPDLOIULHQGV
!*LYHWKHPVWXIIWRVKDUH
0DNHLWHDV\RQ\RXUWDONHUVE\JLYLQJWKHPHYHU\WKLQJWKH\QHHGWRWDON
DERXW\RX&KDULW\ZDWHUKDVYLGHRVIDQVFDQHPEHGVDPSOHVWRULHV
EDQQHUVSRVWHUV7VKLUWVZULVWEDQGV²HYHU\WKLQJDWDONHUQHHGVWR
VSUHDGWKHZRUG
!/HWWKHPVKDUHLQIDPLOLDUZD\V

817(03/$7(5
:D\VWR&UHDWHD.LFN$VV
:RUNIORZ
-8/$0
$FFRUGLQJWR%ORRPEHUJ%XVLQHVVZHHNRSHQLQJPDQKROHFRYHUVZKLFK
ZHLJKXSWROEVLVGLIILFXOWDWEHVWDQGGDQJHURXVDWZRUVW
'DYH5REHUWVZKRVSHQW\HDUVOLIWLQJWKHPZKLOH
ZRUNLQJIRUZDVWHZDWHUDXWKRULWLHVLQ0LQQHVRWD¶V7ZLQ
&LWLHVGHFLGHGWRILQGDEHWWHUZD\
$SHUSHWXDOWLQNHUHU5REHUWVGHVLJQHGDPDFKLQHWRUHPRYH
WKHKHDY\FDVWLURQOLGVXVLQJDSRZHUIXOPDJQHWDQGD 7KHUH\RXDUH
K\GUDXOLFKRLVWWKDWDWWDFKHVWRDEDFNRIDYHKLFOH+H
DVVHPEOHGWKHILUVWGHYLFHLQKLVJDUDJHILYH\HDUVDJRDQG $QDVSLULQJ8QWHPSODWHUUHDG\WRWDNHRQWKHZRUOG
VROGVHYHQRIWKHPWRKLVHPSOR\HU
:KDWGR\RXKDYH"
5REHUWVTXLWKLVMRELQDQGILQDQFHGWKHEXVLQHVVZLWK
PRUHWKDQERUURZHGDJDLQVWKLVKRXVHDQGIURP (QRXJKSDVVLRQWRPHOWWKHPRRQ"&KHFN
FUHGLWFDUGV
$GHVLUHWRGHVLJQ\RXURZQOLIHVW\OH"&KHFN
/DVW2FWREHUKHDQGEXVLQHVVSDUWQHU5LFN&DUOVRQ
UHORFDWHGWR5RFN9DOOH\,RZDDIWHUHFRQRPLFGHYHORSHUV 7KHZLOOWRLQVSLUHWKRXVDQGVDORQJWKHULGH"&KHFN
WKHUHFRQQHFWHGWKHPZLWKDJURXSRIORFDOLQYHVWRUVZKR
LQYHVWHGDQXQGLVFORVHGDPRXQWLQWKHFRPSDQ\ZKLFKWKH\ :KDW¶VPLVVLQJ"
UHQDPHG5RFN0LOOV(QWHUSULVHV
7KHPDJLFWRPDNHLWDOOKDSSHQ
7KHSDWHQWHGGHYLFHFDOOHGWKH/LIWHUVHOOVIRUDQG
WKH\KDYHVKLSSHGDERXWVRIDUZLWKLQUHYHQXH 2UWREHPRUHSUHFLVH$NLFNDVVZRUNIORZ
LQ
+DYLQJRQO\\RXUQRWHERRNDV\RXUPDLQZHDSRQIRUZRUOGGRPLQDWLRQ
5REHUWVDQG&DUOVRQSLWFKWKHLUWRRODVDZD\WRVDYHWLPHDQG UHTXLUHVGLVFLSOLQH6LQFH\RX¶UHVLWWLQJGRZQRQ\RXUEXWWIRUPRVWRIWKH
UHGXFHWKHULVNRILQMXU\WRZRUNHUVDQGWKH\VHHDYDVW GD\\RXEHWWHUFUHDWHDZRUNKDELWWKDWPDNHV\RXUOLIHVW\OHGHVLJQ
PDUNHWIRUWKHSURGXFWLQPXQLFLSDOLWLHVXWLOLW\FRPSDQLHV IHDVLEOH
DQGLQVWLWXWLRQVOLNHPLOLWDU\EDVHVDQGXQLYHUVLWLHV
'RQ¶WZRUU\,KDYHH[SHULPHQWHGZLWKWKLVIRUDJHVPRQWKVDQG,
3KRWRE\%ORRPEHUJ%XVLQHVVZHHN KDYHFRPHXSZLWKDQHSLFZD\RIVWUXFWXULQJ\RXUZRUNIORZ
XQWHPSODWHUVW\OH
*HW\RXUVHOILQWRVWDWHEHIRUH\RXUZRUN
,W¶VWHPSWLQJWRPRYH\RXUEXWWVWUDLJKWWRWKHSFRQFH\RXJHWRXWRIEHG
%XWWKDWZRXOGEHEDGYHU\EDG+XPDQVDUHPDGHIRUPRWLRQ

$VVRRQDV\RXMXPSRXWRIEHGGRVRPHH[HUFLVH,WGRHVQ¶WPDWWHUZKDW SRVVLEOH
\RXGRSXVKXSVVLWXSVGDQFLQJ:KDWHYHUNHHSV\RXUEORRGSXPSLQJ
*LYH\RXUVHOIDULGLFXORXVWLPHOLPLW
,I\RXZDQWWRXSJUDGHWKDWJRRXWIRUZDON5XQUXQUXQDQGVKRXW
LQFDQWDWLRQV,FDQGRWKLV±\HDK\HDK,&$1'27+,67RGD\ZLOOEHD :KHQ\RX¶UHVHOIHPSOR\HGQRRQH¶VNLFNLQJ\RXUDVV<RXKDYHWRGRLW
.,&.$66GD\ \RXUVHOIDWOHDVWPHQWDOO\,IWKLQN\RXQHHGGD\VIRUVRPHWKLQJWKHQLW
ZLOOWDNH\RXH[DFWO\GD\V,I\RXWKLQN\RXFDQGRWKHVDPHLQKRXUV
7KLVPLJKWVHHPWRWDOO\QXWVWR\RXEXWLWJHWV\RXUFLUFXODWLRQUROOLQJ WKHQ\RX¶OOGRLWLQKRXUV:KDWHYHUWLPHOLPLW\RXJLYH\RXUVHOILVWKH
<RX¶OOHQWHUDVWDWHRIKHLJKWHQHGDZDUHQHVVZKDWDWKOHWHVFDOO³WKH WLPH\RXZLOOQHHG6ROHW¶VVSHHGWKLQJVXSDELW
]RQH´
,I\RXWKLQN\RXQHHGKRXUVIRU\RXUZRUNPDNHLWRQHPLQVIRUD
'RWKLVDWOHDVW±PLQVHYHU\VLQJOHGD\ILUVWWKLQJLQWKHPRUQLQJ EORJSRVW"1RZD\PLQVLVWKHZD\WRJR
,SURPLVH\RXVLWWLQJGRZQIRUWKHUHVWRI\RXUGD\ZLOOQHYHUIHHOVRRR
JRRG ,GRWKDWGDLO\DQGLW¶VZRUNLQJOLNHZKLWHPDJLF,EHOLHYHPRVWKXPDQV
ZRUNEHWWHUXQGHUVOLJKWSUHVVXUHDQGKDYLQJDWLJKWHUGHDGOLQHZLOOQRW
3ODQ\RXUGD\WKHHDV\DQGIXQZD\ RQO\VN\URFNHW\RXUSURGXFWLYLW\EXWDOVRVKDUSHQ\RXUIRFXV7KHOHVV
WLPH\RXKDYHWKHPRUH\RXKDYHWRFRQFHQWUDWHRQWKHLPSRUWDQWVWXII
,OXYPLQLPDOLVPHVSHFLDOO\ZKHQLWFRPHVWRSODQQLQJ+DYLQJDFOHDU
SODQLVWKHPRVWDZHVRPHZD\WRVWUXFWXUH\RXUGD\<RXSUREDEO\NQRZ *HWLQWRFDQG\PRGH
WKLVEXW\RX¶UHQRWGRLQJLW/HW¶VFKDQJHWKDWRQFHDQGIRUDOO)RUJHW
DERXW*RRJOHFDOHQGDULW¶VWRRFRPSOH[5HPHPEHU\RXZDQWWRJHW :KHQ\RXILQLVKDQLPSRUWDQWWDVNFURVVLWRI\RXU7R'ROLVW\RXKDYH
WKLQJVGRQH*HW7HX[GHX[IUHHRUDQ\RWKHU6,03/(7R'2SODQHUDQG RQHULJKW"DQG&(/(%5$7(DWOHDVWIRUDPRPHQW6PLOHJHW\RXU
ZULWHGRZQ\RXUPDLQJRDOVIRUWKHGD\6WDUWZLWKWKHELJDQGLPSRUWDQW IDYRULWHVQDFNRUGRZKDWHYHUIHHOVOLNHDUHZDUG7KLVZD\\RXIXUWKHU
URFNVILUVW HVWDEOLVKWKHKDELWLQ\RXUEUDLQ
&DOOFOLHQWV :LOOWKLVJXDUDQWHHNLFNDVVUHVXOWV""
)LQLVKGHVLJQV 2IFRXUVHQRW
0HHWZLWK0LVWHU; 7KH\DUHQRJXDUDQWHHVLQOLIH7KDW¶VZK\LW¶VVRRPXFKIXQ
HWF %XWZLOOLWTXDGUXSOHWKHSRWHQWLDORIFUHDWLQJVRPHWKLQJNLFNDVV"<RX
EHW
7KDW¶V$//\RXQHHGIRUDEDVLFVWUXFWXUH
4XHVWLRQ
7KLVZLOOUDGLFDOO\LPSURYH\RXUSURGXFWLYLW\7KHVLPSOHDFWRIZULWLQJ
WKLQJVGRZQLQDKLHUDUFKLFDORUGHUEULQJV\RXUJRDOVFORVHUWRUHDOLW\,W¶V :KDW¶V\RXU8QWHPSODWHUZRUNIORZDQGGR\RXKDYHDQ\WLSVRQKRZWR
SV\FKRORJ\GRQ¶WDVNPHZK\LWZRUNV FUHDWHDEHWWHURQH"7HOOXVLQWKHFRPPHQWVZHDOOZDQWWRLPSURYH
:RUNZLWKWKHIRFXVRID-HGL
/LIH¶VDGLVWUDFWLRQZKHQ\RXDUHGLVWUDFWHGDOOWKHWLPH,WULHG
PXOWLWDVNLQJEHIRUH
,ZDVZRUNLQJZKLOHOLVWHQLQJWRSRSFKHFNLQJP\)DFHERRN7ZLWWHU
XSGDWHVDQGZDWFKLQJ$QLPHV1HHGOHVVWRVD\LWGLGQ¶WZRUN
,GLGQ¶WJHWDQ\WKLQJGRQHDQGLI,GLGWKHTXDOLW\ZDVXVXDOO\VXEEHORZ
VWDQGDUG7RKHOOZLWKLWQRZ1HZPRGHO,GRRQO\RQHWKLQJDWDWLPH
DQG,PDNHLWDV%(67DVSRVVLEOH
6RLI\RXZULWHUHDOO\MXVWZULWH)RFXVHQWLUHO\RQ\RXUZULWLQJIORZ±
PDNHLWWKHSXUHFHQWHURI\RXUFRQFHQWUDWLRQ.HHSWKHPRPHQWXP
IORZLQJXQWLO\RXILQLVKWKHSRVW7KHQWDNHDVKRUWEUHDNDQG
LPPHGLDWHO\WDFNOH\RXUQH[WWDVN2QHVWHSDWDWLPH$VHSLFDV

6(7+¶6%/2*
,QIRUPDWLRQDERXWLQIRUPDWLRQ
-8/$0
7KHILUVWUHYROXWLRQKLWZKHQSHRSOHZKRPDGHVWXIIVWDUWHGWRGLVFRYHU
WKDWLQIRUPDWLRQZDVRIWHQDVYDOXDEOHDVWKHVWXIILWVHOI.QRZLQJZKHUH
VRPHWKLQJZDVRUKRZLWSHUIRUPHGRUKRZLWLQWHUDFWHGZLWK\RXFDQEH
ZRUWKPRUHWKDQWKHLWHPLWVHOI
)ULWR/D\GRPLQDWHVWKHVQDFNEXVLQHVVEHFDXVHRIWKHLQIRUPDWLRQ
LQIUDVWUXFWXUHWKH\EXLOWRQWRSRIWKHLUGHOLYHU\PRGHO(OHYHQLQ-DSDQ
GRPLQDWHGIRUDGHFDGHRUPRUHEHFDXVHWKH\XVHGLQIRUPDWLRQWR
FKDQJHWKHLULQYHQWRU\=DUDLQ(XURSHLVDQLQIRUPDWLRQEXVLQHVVWKDW
KDSSHQVWRVHOOFORWKHV
<RX¶YHSUREDEO\DOUHDG\JXHVVHGZKDW¶VQRZLQIRUPDWLRQDERXW /RRNLQJIRUDQLQH[SHQVLYHVHUYLFHIUDQFKLVHWRUXQRXWRI\RXUKRPH"
LQIRUPDWLRQ7KDW¶VZKDW)DFHERRNDQG*RRJOHDQG%ORRPEHUJGRIRUD (QMR\GHDOLQJZLWKWKHSXEOLFDQGZRUNLQJRXWGRRUV"
OLYLQJ7KH\FUHDWHDPHWDOD\HUDZRUOGRILQIRUPDWLRQDERXWWKH
LQIRUPDWLRQLWVHOI ,QEXVLQHVVVLQFH,URQ'ULYH&RDWLQJVSURYLGHVTXDOLW\LQVWDOODWLRQ
RIJDUDJHIORRUGULYHZD\ZDONZD\DQGSRROGHFNFRDWLQJV7KH
$QGZK\LVWKLVVRYDOXDEOH"%HFDXVHLWFRPSRXQGV$WLQ\KHDGVWDUWLQ FRPSDQ\¶VLQQRYDWLYHHSR[\JDUDJHIORRUFRDWLQJV\VWHPLVHDV\WRDSSO\
DFFHVVWRWKLVLQIRUPDWLRQJLYHV\RXDKXJHDGYDQWDJHLQWKHVWRFN DQGWDNHVRQHWKLUGRIWKHWLPHRIRWKHUDSSOLFDWLRQSURFHVVHVWRGU\DQG
PDUNHW2ULQPDUNHWLQJ2ULQIXQGUDLVLQJ DOOIRUFRQVLGHUDEO\OHVVWKDQWKHW\SLFDOFRVW
0DQ\SHRSOHDQGRUJDQL]DWLRQVDUHFRQWULEXWLQJWRWKLVPDVVRIGDWDEXW ³,GHFLGHGWRIUDQFKLVH,URQ'ULYH&RDWLQJVEHFDXVH,KDYHDVROLG
IHZDUHWDNLQJDGYDQWDJHRIWKHRSSRUWXQLW\WRFROODWHLWDQGSUHVHQWLWWR IRXQGDWLRQWKDWDQ\RQHFDQDGDSW´6KDQQRQ6WHYHQVVDLG³,KDYHD
SHRSOHZKRGHVSHUDWHO\QHHGLW7KLQNDERXWKRZPXFKQHHGVWREH VXFFHVVIXOEXVLQHVVPRGHODQGDXQLTXHSURGXFWWKDWRXWSHUIRUPVWKH
VRUWHGFRPSDUHGXSGDWHGDQGSUHVHQWHGWRSHRSOHZKRZDQWWRFKRRVH FRPSHWLWLRQ´
RUOHDUQRUWUDGHRQLW
,URQ'ULYH&RDWLQJVKDVEHHQDIDPLO\UXQEXVLQHVVVLQFH7KH\
7KHUDFHWRGHOLYHUWKLVHVVHQWLDOVFDOLQJDVVHWLVQ¶WRYHULW¶VMXVW SURYLGHSURIHVVLRQDOTXDOLW\LQVWDOODWLRQRIJDUDJHIORRUGULYHZD\
EHJLQQLQJ ZDONZD\DQGSRROGHFNFRDWLQJVLQFOXGLQJDQLQQRYDWLYHRQHGD\HFR
IULHQGO\JDUDJHIORRUFRDWLQJV\VWHP,URQ'ULYH&RDWLQJVIUDQFKLVH
RSSRUWXQLWLHVDUHFXUUHQWO\DYDLODEOHLQVWDWHV/HDUQPRUHDW
ZZZLURQGULYHDGYDQWDJHFRP
%86,1(6623325781,7,(6:(%/2*
,URQ'ULYH&RDWLQJV
-8/30

%86,1(6623325781,7,(6:(%/2*
*OREH5LGLQJ
-8/30
%86,1(6623325781,7,(6:(%/2*
%ORJ:RUOG([SR
2QHRIWKHH[FLWLQJWKLQJVDERXWUXQQLQJWKLVEORJLVWKHQXPEHURI -8/30
LQWHUHVWLQJLGHDV,FRPHDFURVV2QHVXFKJUHDWLGHD,MXVWGLVFRYHUHGLV
JOREHULGLQJ
2QHVXFKFRPSDQ\WKDWRIIHUVDIUDQFKLVHEXVLQHVVLV=25%
=25%JOREHULGLQJJHQHULFDOO\NQRZQDVJOREHULGLQJLVWKH

H[SHULHQFHRIUROOLQJGRZQDKLOOLQDODUJHLQIODWDEOHJOREHDW
DGHGLFDWHG=25%VLWH:HSODFH\RXLQVLGHRQHRIRXU
RULJLQDO=25%JOREHVDQGUROO\RXGRZQRXUKLOOZHWRUGU\
ZKLFKHYHUWLFNOHV\RXUIDQF\:HKDYHWZRW\SHVRI=25%
JOREHVDYDLODEOH±WKHKDUQHVVRU=25%,7GU\YDULHW\DQG
WKHQRQKDUQHVVRU=<'52ZHWYDULHW\:KDW¶VPRUH\RX
FDQFKRRVHWRUROOGRZQDRQHRIRXUWUDFNYDULWDWLRQVIRUD
FRPSOHWHO\XQLTXHH[SHULHQFH
$UH\RXSODQQLQJWRDWWHQGWKH%ORJ:RUOG([SR"7KHH[SRUXQVIURP
2FWREHUWK±WKDWWKH0DQGDOD\%D\&RQYHQWLRQ&HQWHULQ/DV
9HJDV1HYDGD
,KDYHQ¶WGHFLGHGZKHWKHURUQRW,¶PJRLQJWRDWWHQGWKLV\HDUEXWLI\RX
DUHDQGZRXOGOLNHWRPHHWXS,PLJKWILQDOL]HP\GHFLVLRQ
7KHSULFHVJRXSWRPRUURZVROHWPHNQRZVRRQ7KHSULFHVDUHEHORZ
=25%OLNHULGHDEOHEDOOVDUHDOVRDYDLODEOHGLUHFWO\IURP&KLQDFDOOHG
$VLD,QIODWDEOHVIRUHDFK


-XO\
7RGD\·V7DEEORLG
'$01,:,6+,¶'7+28*+72)7+$7 '$01,:,6+,¶'7+28*+72)7+$7
<RXQHHGSHUVRQDOLW\ +LULQJ6RFLDO0HGLD3HRSOHLQ
-8/$0
$XVWLQDQG&KLFDJR
-8/30
:HMXVWRSHQHGWKH$XVWLQRIILFHIRU*DV3HGDODQG6RFLDO0HGLDRUJ
&RPPXQLW\0DQJHU6RFLDO0HGLD(YDQJHOLVW$XVWLQRU&KLFDJR
93RI(YHQWV$XVWLQRU&KLFDJR
&XVWRPHU6HUYLFH0DQDJHU$XVWLQRQO\
2IILFH0DQDJHU([HFXWLYH$VVLVWDQW$XVWLQ
)XOOGHWDLOVDUHKHUH
:KDWLW¶VOLNHWRZRUNZLWKXV
6RXUFH0RUHLQIR ,PDJLQHQHYHUKDYLQJDQRWKHUERULQJGD\DWZRUN,PDJLQHDSODFHIUHH
RISROLWLFVDQGZKLQHUV&RPELQHWKDWZLWKDPD]LQJHQHUJ\DQG
SURGXFWLYLW\WKDWFUDQNVRXWDVWRQLVKLQJO\JRRGZRUNHYHU\GD\:HGRQ¶W
6KDUH NQRZLWDOOEXWZH¶UHILJXULQJLWRXWWRJHWKHUDQGKDYLQJDJUHDWWLPH
GRLQJLW6HHKWWSJDVSHGDOFRPDERXWSKLORVRSK\
%XVLQHVVHVHYHU\ZKHUHDUHEHJLQQLQJWRUHDOL]HWKDWKRQHVWHWKLFDO
FXVWRPHUORYHLVWKHPRVWSRZHUIXONLQGRIPDUNHWLQJ7KH\DUHOHDUQLQJ
WROLVWHQWRREVHVVRYHUFXVWRPHUH[SHULHQFHWRWUHDWSHRSOHOLNHSHRSOH
WRYDOXHYDOXHVWRUHVSHFWWKHHQYLURQPHQWWREHSDUWRIWKHFRPPXQLW\
²WREHQLFH
:HWHDFKWKHPKRZWRGRLW
:HEHOLHYHWKDWWKLVLVJRRGIRUVRFLHW\²DQGWKDWLW¶VDSURILWDEOH
EXVLQHVVVWUDWHJ\&RPSDQLHVWKDWJHWWKHLUFXVWRPHUVIRUIUHHWKURXJK
WKHSRZHURIZRUGRIPRXWKKDYHDIXQGDPHQWDOFRPSHWLWLYHDGYDQWDJH
RYHUWKRVHWKDWXVHH[SHQVLYHPDUNHWLQJWRFKDVHIOHHLQJFXVWRPHUV
6PDUWFRPSDQLHVUHLQYHVWWKRVHVDYLQJVLQVHUYLFHVXSSRUWDQG
LQQRYDWLRQ²SXWWLQJWKHPHYHQIXUWKHUDKHDG
*DV3HGDOLVDGUHDPMRELI\RXDUHLQWHUHVWHGLQEORJVVRFLDOPHGLDRU
WKHIXWXUHRIPDUNHWLQJ<RXZRQ¶WEHMXVWUHDGLQJDERXWWKHYLVLRQDULHV
<RX¶OOEHZRUNLQJZLWKWKHPWRPDNHWKHIXWXUHPRUHHWKLFDODQG
HIIHFWLYH6WRSWDONLQJDERXWWKLVVWXII²GRVRPHWKLQJDERXWLW

6KDUH

-XO\
7RGD\·V7DEEORLG
%86,1(6623325781,7,(6:(%/2* %86,1(6623325781,7,(6:(%/2*
$SSV$SSVDQG0RUH$SSV &RORUDGR:DUQV%L]V2I7KHIW
-8/$0
6FDP
7KH\KDYHEHFRPHDILOWHUIRURXUZRUOG7KURXJKWKHPZHFDQDFFHVV -8/$0
LQIRUPDWLRQJDPHVHQWLUHYLUWXDOZRUOGV
1RWWKHLQWHUQHWQRURXUFRPSXWHUVQRWWDEOHWVRUODSWRSV±MXVWOLWWOH
SURJUDPVRQRXUSKRQHV0LOOLRQVRIOLWWOHSURJUDPV
:KDWDUHWKHUHDOQXPEHUVEHKLQGWKHVHSURJUDPVDQGZK\DUHWKHUHVR
PDQ\RIWKHP"
2QOLQH0%$WDNHVDORRN
&RORUDGR¶V6HFUHWDU\RI6WDWHDQGRWKHURIILFLDOVDUHZDUQLQJWKHVWDWH¶V
RUVRUHJLVWHUHGEXVLQHVVHVWRZDWFKRXWIRUVFDPPHUVZKR
KDYHEHHQIRUJLQJEXVLQHVVLGHQWLWLHVWRPDNHIUDXGXOHQWSXUFKDVHVIURP
VHYHUDOELJER[UHWDLOHUVLQUHFHQWPRQWKVUHSRUWV3&:RUOG
7KHFRUSRUDWHLGHQWLW\WKHIWVLWVHOIZHUHSRVVLEOHEHFDXVHRI
ZKDWDSSHDUVWRKDYHEHHQDVXUSULVLQJO\ZLGHRSHQEXVLQHVV
UHJLVWUDWLRQV\VWHPDWWKH&RORUDGR6HFUHWDU\RI6WDWH¶V2IILFH
$VZLWKHYHU\RWKHUVWDWH&RORUDGRUHTXLUHVFRPSDQLHVGRLQJ
3KRWRE\2QOLQH0%$ EXVLQHVVLQWKHVWDWHWRUHJLVWHUGHWDLOVRIWKHLUEXVLQHVV/LNH
RWKHUVWDWHVWKHEXVLQHVVUHJLVWUDWLRQGHWDLOVZKLFKLQFOXGH
WKHQDPHRIWKHUHJLVWHUHGDJHQWRIWKHFRPSDQ\LWVIXOOORFDO
DGGUHVVDQGRWKHULQIRUPDWLRQDUHDSXEOLFUHFRUGWKDWFDQ
EHYLHZHGE\DQ\RQH
,Q&RORUDGR¶VFDVHKRZHYHUQRWRQO\GRHVWKHVWDWHDOORZ
DQ\RQHWRYLHZWKHUHFRUG²LWDOVRDOORZVMXVWDERXWDQ\RQH
WRDOWHURUXSGDWHLW7KHVWDWHVLWHUHTXLUHVQRXVHUQDPHRU
SDVVZRUGIRUDFFHVVWRDFRPSDQ\¶VUHJLVWUDWLRQLQIRUPDWLRQ
ZKLFKPHDQVWKDWDQ\RQHZLWKDFFHVVWRWKHVLWHFDQPDNH
FKDQJHV
7KHLGHQWLW\WKLHYHVXVHGWKLVKROHWRDOWHUWKHFRQWDFWDQG
RWKHUUHJLVWUDWLRQLQIRUPDWLRQIRUVHYHUDOFRPSDQLHV
$FFRUGLQJWR%URZQPDQ\RIWKHFRPSDQLHVWDUJHWHGDSSHDU

WRKDYHEHHQVPDOOHUDQGPHGLXPVL]HGILUPVDQGLQVRPH 817(03/$7(5
FDVHVGHIXQFWFRPSDQLHV2QFHWKHUHJLVWUDWLRQLQIRUPDWLRQ
ZDVFKDQJHGWKHVFDPPHUVWKHQXVHGWKHIRUJHGLGHQWLW\WR 'RQ¶W/HW)HDU)UHH]H<RX
PDNHRQOLQHDSSOLFDWLRQVIRUOLQHVRIFUHGLWZLWKWKHUHWDLOHUV -8/$0
3KRWRE\&RORUDGR6HFUHWDU\RI6WDWH
'$01,:,6+,¶'7+28*+72)7+$7
+RZQRWWRJHWDMRE
-8/$0
'HDU$QG\
,MXVWJUDGXDWHGDQGZDVKRSHLQJWRVHWDWLPHWRPHHWZLWK\RXDQGSLFN
\RXUEUDLQFRQFHUQLQJZRPWHFKQLTXHVIRUWKHMREKXQWLQJSURFHVV
3OHDVHOHWPHNQRZLI\RXZRXOGEHLQWHUHVWHGLQPHHWLQJIRUOXQFKRU ³7KH7HPSODWH/LIH´LVDFRQWUDGLFWLRQLQWHUPV
FRIIHHP\WUHDWWRGLVFFXVVWKLVWRSLF
:KDWDUHVRPHRIWKHZDWFKZRUGVZHXVHWRGHVFULEHWKHWHPSODWHOLIH"
5HJDUGV
2YHUZRUNHG«8QGHUSDLG«8QGHUDSSUHFLDWHG«8QKDSS\«%RUHG«
(DJHU
:H¶UHWDXJKWWRVWULYHIRUWKLVXQGHUWKHJXLVHRIPXFKPRUHKDSS\
'HDU(DJHU ZRUGLQJ
6RPHDGYLFH 6WUXFWXUHG«6DIH«6HFXUH«6WDEOH«1RUPDO«
$VNLQJIRULQIRUPDWLRQDOLQWHUYLHZVLVDUHDOO\EDGMREKXQWLQJ 'RZQZLWK1RUPDO
VWUDWHJ\1REXV\H[HFXWLYHKDVIUHHWLPHWRKDQJRXWDQGFKDWZLWKMRE
VHHNHUV:H¶UHZRUNLQJ$VNLQJIRURXUWLPHPDNHV\RXORRNFOXHOHVV $OORIWKHVHZRUGVFRPELQHWRIRUPDQH[LVWHQFHVRGXOOLW¶VQRW
DERXWWKHUHDOLWLHVRIWKHZRUNSODFH,NQRZWKDWVRPHQHWZRUNLQJMRE LQWHUHVWLQJHQRXJKWREHFDOOHGPLVHUDEOH7KLQN(GZDUG1RUWRQLQ)LJKW
DGYLFH³H[SHUW´WROG\RXWKLVLVDJRRGLGHD,WLVQ¶W7LPHLVWKHRQHWKLQJ &OXE7KHPDQ¶VOLIHZDVVRLQFUHGLEO\GXOOKHGLGQ¶WJHWVWLPXODWHG
QRERG\KDV HQRXJKLQWKHKRXUVKHZDVDZDNHWRJHWWLUHGHQRXJKWRVOHHS
6SHOOEHWWHU 1HZV)ODVK3HRSOHRI$PHULFD³1RUPDO´VXFNV7KLVLVQ¶WHYHQ³OLYLQJ´
LW¶VPRUH³DYRLGLQJGHDWK´
$QG\
&ORVH\RXU(\HV+ROG<RXU1RVHDQG-803
6KDUH :K\DUHVRPDQ\SHRSOHDIUDLGWRWDNHWKDWOHDS7RWKURZWKHLUERULQJ
OLIHDVLGHDQGGRVRPHWKLQJWKDWWKH\HQMR\"
6LPSOHIHDU)HDURIWKHXQNQRZQIHDURIMXGJPHQWIHDURIULGLFXOHIHDU
RIIDLOXUH:KDWHYHUWKHUHDVRQLW¶VWKDWIHDUWKDWNHHSVXVIURPWDNLQJ
WKHSOXQJH"3DUWRIWKDWIHDUFRPHVIURPWKDWIDFWWKDWZHWKLQNLQ
FRQWUDGLFWRU\WHUPV*RRGYV(YLO/LJKWYV'DUN%ODFNYV:KLWH:H
OHDYHRXUVHOYHVYHU\OLWWOHJUD\DUHDZLWKWKLQJV
7KHUH¶VPRUHWKDQ*UD\LQWKH0LGGOH

)RUH[DPSOHLQ$PHULFDZKHQDFKLOGSXOOVSHWDOVRIIRIDGDLV\WKH\VD\ 817(03/$7(5
³+HORYHVPH+HORYHVPHQRW´,W¶VHLWKHUWRWDODGPLUDWLRQRUFRPSOHWH
UHMHFWLRQ,Q)UDQFHKRZHYHUWKH\SXOOWKHSHWDOVRIIDQGVD\³+HORYHV 'RQ¶W/HW)HDU)UHH]H<RX
PHDOLWWOHDORWSDVVLRQDWHO\PDGO\QRWDWDOO´7KH\KDYHDQHQWLUH -8/$0
VSHFWUXPRIZD\VWRYLHZLQJWKHVDPHVLWXDWLRQ
3HRSOHRIWHQDVVXPHWKDWDQ\WKLQJWKH\PLJKWFRQVLGHUGRLQJLVHLWKHU
JRLQJWREHDUDJLQJVXFFHVVRUDWRWDOIDLOXUH7KLVOHDGVWRDODUJHJURXS ³7KH7HPSODWH/LIH´LVDFRQWUDGLFWLRQLQWHUPV
RISHRSOHJRLQJWKURXJKWKHPRWLRQVRIVDIHW\DIUDLGRIIDOOLQJVKRXOG
WKH\WDNHWKHOHDS :KDWDUHVRPHRIWKHZDWFKZRUGVZHXVHWRGHVFULEHWKHWHPSODWHOLIH"
7KHUH¶V6RPHWKLQJ\RX:DQWWR'R6R'R,W 2YHUZRUNHG«8QGHUSDLG«8QGHUDSSUHFLDWHG«8QKDSS\«%RUHG«
,I\RXZDQWWREHDQDFWRUJLYHLWDVKRW<RXSUREDEO\ZRQ¶WZLQDQ :H¶UHWDXJKWWRVWULYHIRUWKLVXQGHUWKHJXLVHRIPXFKPRUHKDSS\
2VFDUEXW\RXPLJKWJHWWRKDYHVRPHIXQLQDORFDOSURGXFWLRQ ZRUGLQJ
,I\RXZDQWWREHDSKRWRJUDSKHUJRIRULW<RXPLJKWQRWEHWKHQH[W 6WUXFWXUHG«6DIH«6HFXUH«6WDEOH«1RUPDO«
$QQLH/HLERYLW]EXW\RXPLJKWEHDEOHWREULQJLQDOLWWOHSRFNHWPRQH\
WDNLQJSLFWXUHVIRUIULHQGV¶ZHGGLQJVDQGJUDGXDWLRQV 'RZQZLWK1RUPDO
/HW¶VQRWIRUJHWWKHVHPLJKWQRWEHLQFUHGLEO\OXFUDWLYHMREVEXW $OORIWKHVHZRUGVFRPELQHWRIRUPDQH[LVWHQFHVRGXOOLW¶VQRW
UHPHPEHUWKDWPRQH\LVQ¶WWKHRQO\WKLQJLQOLIH,I\RXFDQEULQJ LQWHUHVWLQJHQRXJKWREHFDOOHGPLVHUDEOH7KLQN(GZDUG1RUWRQLQ)LJKW
\RXUVHOIWRWDNHWKDWOHDS\RX¶OOJHWWROHDUQQHZWKLQJVPHHWQHZ &OXE7KHPDQ¶VOLIHZDVVRLQFUHGLEO\GXOOKHGLGQ¶WJHWVWLPXODWHG
SHRSOHDQGKDYHDORWRIIXQLQWKHSURFHVV HQRXJKLQWKHKRXUVKHZDVDZDNHWRJHWWLUHGHQRXJKWRVOHHS
<RXKDYHWRWDNHWKHFKDQFH(QGWKHIHDUWDNHWKHSOXQJH7DNLQJWKH 1HZV)ODVK3HRSOHRI$PHULFD³1RUPDO´VXFNV7KLVLVQ¶WHYHQ³OLYLQJ´
FKDQFHLVQRWDJXDUDQWHHRIWRWDOIDLOXUHDQGHYHQLILWLVWDNLQJDOHDSRI LW¶VPRUH³DYRLGLQJGHDWK´
IDLWKDQGODQGLQJRQ\RXUIDFHLVVWLOOWKHEHWWHUDOWHUQDWLYHWKDQVWDQGLQJ
VWLOODQGVLQNLQJLQWRWKHTXLFNVDQGRIPHGLRFULW\ &ORVH\RXU(\HV+ROG<RXU1RVHDQG-803
7KHSRHW-RKQ*UHHQOHDI:KLWWLHUVDLG :K\DUHVRPDQ\SHRSOHDIUDLGWRWDNHWKDWOHDS7RWKURZWKHLUERULQJ
OLIHDVLGHDQGGRVRPHWKLQJWKDWWKH\HQMR\"
³)RUDOOVDGZRUGVRIWRQJXHDQGSHQ7KHVDGGHVWDUHWKHVHµ,WPLJKW
KDYHEHHQ¶´ 6LPSOHIHDU)HDURIWKHXQNQRZQIHDURIMXGJPHQWIHDURIULGLFXOHIHDU
RIIDLOXUH:KDWHYHUWKHUHDVRQLW¶VWKDWIHDUWKDWNHHSVXVIURPWDNLQJ
,WPLJKWQRWZRUNRXWEXWDWOHDVW\RX¶OONQRZ WKHSOXQJH"3DUWRIWKDWIHDUFRPHVIURPWKDWIDFWWKDWZHWKLQNLQ
FRQWUDGLFWRU\WHUPV*RRGYV(YLO/LJKWYV'DUN%ODFNYV:KLWH:H
OHDYHRXUVHOYHVYHU\OLWWOHJUD\DUHDZLWKWKLQJV
7KHUH¶VPRUHWKDQ*UD\LQWKH0LGGOH
)RUH[DPSOHLQ$PHULFDZKHQDFKLOGSXOOVSHWDOVRIIRIDGDLV\WKH\VD\
³+HORYHVPH+HORYHVPHQRW´,W¶VHLWKHUWRWDODGPLUDWLRQRUFRPSOHWH
UHMHFWLRQ,Q)UDQFHKRZHYHUWKH\SXOOWKHSHWDOVRIIDQGVD\³+HORYHV
PHDOLWWOHDORWSDVVLRQDWHO\PDGO\QRWDWDOO´7KH\KDYHDQHQWLUH
VSHFWUXPRIZD\VWRYLHZLQJWKHVDPHVLWXDWLRQ
3HRSOHRIWHQDVVXPHWKDWDQ\WKLQJWKH\PLJKWFRQVLGHUGRLQJLVHLWKHU
JRLQJWREHDUDJLQJVXFFHVVRUDWRWDOIDLOXUH7KLVOHDGVWRDODUJHJURXS
RISHRSOHJRLQJWKURXJKWKHPRWLRQVRIVDIHW\DIUDLGRIIDOOLQJVKRXOG
WKH\WDNHWKHOHDS
7KHUH¶V6RPHWKLQJ\RX:DQWWR'R6R'R,W
,I\RXZDQWWREHDQDFWRUJLYHLWDVKRW<RXSUREDEO\ZRQ¶WZLQDQ

2VFDUEXW\RXPLJKWJHWWRKDYHVRPHIXQLQDORFDOSURGXFWLRQ 7+(60$573$66,9(,1&20(%/2*
,I\RXZDQWWREHDSKRWRJUDSKHUJRIRULW<RXPLJKWQRWEHWKHQH[W 63,,QWURGXFWLRQ_6KRZ
$QQLH/HLERYLW]EXW\RXPLJKWEHDEOHWREULQJLQDOLWWOHSRFNHWPRQH\
WDNLQJSLFWXUHVIRUIULHQGV¶ZHGGLQJVDQGJUDGXDWLRQV )RUPDOLWLHV_:KDWWR([SHFW
-8/$0
/HW¶VQRWIRUJHWWKHVHPLJKWQRWEHLQFUHGLEO\OXFUDWLYHMREVEXW
UHPHPEHUWKDWPRQH\LVQ¶WWKHRQO\WKLQJLQOLIH,I\RXFDQEULQJ
\RXUVHOIWRWDNHWKDWOHDS\RX¶OOJHWWROHDUQQHZWKLQJVPHHWQHZ
SHRSOHDQGKDYHDORWRIIXQLQWKHSURFHVV
<RXKDYHWRWDNHWKHFKDQFH(QGWKHIHDUWDNHWKHSOXQJH7DNLQJWKH
FKDQFHLVQRWDJXDUDQWHHRIWRWDOIDLOXUHDQGHYHQLILWLVWDNLQJDOHDSRI
IDLWKDQGODQGLQJRQ\RXUIDFHLVVWLOOWKHEHWWHUDOWHUQDWLYHWKDQVWDQGLQJ
VWLOODQGVLQNLQJLQWRWKHTXLFNVDQGRIPHGLRFULW\
7KHSRHW-RKQ*UHHQOHDI:KLWWLHUVDLG
³)RUDOOVDGZRUGVRIWRQJXHDQGSHQ7KHVDGGHVWDUHWKHVHµ,WPLJKW
KDYHEHHQ¶´
,WPLJKWQRWZRUNRXWEXWDWOHDVW\RX¶OONQRZ
>6HHSRVWWROLVWHQWRDXGLR@
/HQJWK
6(7+¶6%/2* 5LJKWFOLFNKHUHWRGRZQORDGWKH03
6HOIPDUNHWLQJPLJKWEHWKH ,W¶VKHUH7KHILUVWVHVVLRQRI7KH6PDUW3DVVLYH,QFRPH3RGFDVW
PRVWLPSRUWDQWNLQG <RXFDQGRZQORDGWKHSRGFDVWWR\RXUFRPSXWHURUOLVWHQWRLWKHUHRQ
-8/$0 WKHEORJ$GGLWLRQDOO\,ZLOOEHVXEPLWWLQJWKHSRGFDVWIHHGWRL7XQHV
VRRQVR\RXFDQVXEVFULEHWKHUHDVZHOO±EXW,¶OOOHW\RXNQRZZKHQLW¶V
:KDWVWRU\GR\RXWHOO\RXUVHOIDERXW\RXUVHOI" XSDQGUHDG\WRJR
,NQRZWKDWPDUNHWHUVWHOOVWRULHV:HWHOOWKHPWRFOLHQWVSURVSHFWV 6LQFHWKLVLVRXUILUVWVHVVLRQWRJHWKHU,VSHQGDOLWWOHELWRIWLPH
ERVVHVVXSSOLHUVSDUWQHUVDQGYRWHUV,IWKHVWRULHVUHVRQDWHDQGVSUHDG LQWURGXFLQJP\VHOIDQGKRZ,GHILQHSDVVLYHLQFRPHDQGXWLOL]HLWIRUP\
DQGVHGXFHWKHQZHVXFFHHG EXVLQHVVHVDQGOLIHVW\OH$OVR,JRRYHUWKHIRUPDOLWLHVRIWKHVKRZDQG
ZKDWWRH[SHFWIURPIXWXUHVHVVLRQV
%XWZKDWDERXWWKHVWRU\\RXWHOO\RXUVHOI"
)XWXUHVKRZVZLOOKDYHDVWUXFWXUHGIRUPDWDQGVHYHUDOZLOOLQFOXGH
'R\RXKDYHDQHOHYDWRUSLWFKWKDWUHPLQGV\RXWKDW\RX¶UHDVWUXJJOLQJ VSHFLDOJXHVWV
IUDXGFHUWDLQWREHFDXJKWDQGGHVWLQHGWRIDLO"$UH\RXPDUNHWLQJD
SHUVSHFWLYHDQGDQDWWLWXGHRIJHQHURVLW\":KHQ\RXWDONWR\RXUVHOI 6SHFLDOLQIRUPDWLRQDERXWWKHHSLVRGHVXFKDVLWHPVPHQWLRQHGGXULQJ
ZKDWGR\RXVD\",VDQ\RQHOLVWHQLQJ" WKHVHVVLRQDQGDFWLRQLWHPVZLOOXVXDOO\DSSHDUEHORZDORQJZLWKD
WUDQVFULSW
<RX¶YHOHDUQHGWKURXJKH[SHULHQFHWKDWIUHTXHQF\ZRUNV7KDWPLQGVFDQ
EHFKDQJHG7KDWSRZHUIXOVWRULHVKDYHLPSDFW ,WHPV0HQWLRQHGLQ7KLV6HVVLRQ
,JXHVVWKHQWKHFKDOOHQJHLVWRXVHWKRVHYHU\VDPHWRROVRQ\RXUVHOI /2/HU$SSV
*UHHQ([DP$FDGHP\
3DW¶V)DFHERRN3DJH

3DWRQ<RX7XEH 62&,$/0(',$0$5.(7,1*
$FWLRQ,WHPV 6RFLDO1HWZRUN7KH0RYLH
-8/$0
2QFHL7XQHVKDVDSSURYHGWKHVKRZ,¶OOSURYLGH\RXZLWKDQ
L7XQHVIHHGIRUWKHSRGFDVWRQO\$GGLWLRQDOO\\RXFDQDOVR
VXEVFULEHWRWKHEORJDQGJHWDOORIP\PDWHULDOEORJSRVWVDQG
SRGFDVWE\FOLFNLQJKHUH
7UDQVFULSW
$V)DFHERRNSUHSDUHVWRFHOHEUDWHKLWWLQJPLOOLRQPHPEHUVWKLV
63,,QWURGXFWLRQ_6KRZ)RUPDOLWLHV_:KDWWR([SHFW ZHHNZH¶UHVHHLQJPRUHQHZVRIWKHFRQWURYHUVLDOILOP7KH6RFLDO
1HWZRUN :LWKWKHWDJOLQH³<RXGRQ¶WJHWWRPLOOLRQIULHQGV
ZLWKRXWPDNLQJDIHZHQHPLHV´WKHWUDLOHUIRUWKHILOPKDVEHHQUXQQLQJ
±±±±±±± RQWKHVRFLDOQHWZRUNPRYLHFRPRUPLOOLRQIULHQGVFRP<RXFDQ
$VDOZD\V,MXVWZDQWHGWRWKDQN\RXIRUVXEVFULELQJ7KLVEORJLVD ZDWFKLWEHORZQRZ
VXFFHVV
WKHFRQYHUVDWLRQ
6RQ\LVDGYHUWLVLQJWKHPRYLHRQ7ZLWWHUEXWQRWRQ)DFHERRNJR
7KDQN\RXVRPXFK ILJXUH7KHIRXQGHUVRI)DFHERRNKDYHDOUHDG\UHDFWHGWRWKHWUDLOHU
)DFHERRN&(20DUN=XFNHUEHUJLVJRLQJWREHSOD\HGE\-HVVH
63,,QWURGXFWLRQ_6KRZ)RUPDOLWLHV_:KDWWR([SHFW (LVHQEHUJSUREDEO\PRVWZHOONQRZQIRUKLVSDUWLQ$GYHQWXUHODQG
3UHWW\JRRGFDVWLQJLQP\RSLQLRQ
5HODWHGSRVWV
1RZKHUHFRPHVWKHIXQSDUW
$9DOXDEOH5HVRXUFHIRU%ORJJHUVDQG,QWHUQHW0DUNHWHUV$OLNH
,IWKH\ZHUHKROGLQJRSHQFDVWLQJFDOOVIRUH[WUDVDQG\RXZHUHJRLQJWR
5HDG7KLV3RVWWR)LQG2XW([DFWO\:KDW<RX1HHGWR.QRZ$ERXW EHIHDWXUHGZKDWIDPRXVSHUVRQGHDGRUDOLYHZRXOGSOD\\RX
&DOOVWR$FWLRQ LQWKHPRYLH"/HDYHDFRPPHQWEHORZRUUHSO\ZLWKDSRVWRQ
\RXURZQEORJZLWKDOLQNEDFNWRWKLVSRVW
7KH3RGFDVWLV&RPLQJDQG,1HHG<RXU+HOS3OHDVH
7RJHW\RXVWDUWHGKHUHDUHWHQLQGLYLGXDOVLQWKHVRFLDOPHGLDVSDFHDQG
7KLQJV<RX0XVW.QRZ$ERXW&UHDWLQJ<RXU2ZQL3KRQH$SSV WKHLU+ROO\ZRRGGRSSHOJlQJHUV)DLUZDUQLQJWKHVHDUHQ¶WPHDQWWR
LQVXOWDQ\RQH,¶PJRLQJIRUKXPRUDQG,SXUSRVHIXOO\GLGQ¶WXVHDQ\
ZRPHQDVVXEMHFWV,UHDOO\GLGQ¶WZDQWWRJHWLQWRWURXEOH
$XWKRU 10/3UHVLGHQW&KULV%URJDQ-HII%ULGJHV

%RVWRQPHGLDPDYHQ&&&KDSPDQ6LPRQ&RZHOO
0DVKDEOH&(23HWH&DVKPRUH2UODQGR%ORRP
9LGHRVDYDQW6WHYH*DUILHOG'LUW\-REV¶0LNH5RZH

5DJDQ&RPPXQLFDWLRQV&(20DUN5DJDQ%UXFH'DYLVRQ
3UROLILFDXWKRU VSHDNHU6HWK*RGLQ/DUU\'DYLG
:HEVWUDWHJLVW $OWLPHWHU3DUWQHU-HUHPLDK2Z\DQJ:D\QH
1HZWRQ

3RZHUHG&02$DURQ6WURXW*X\)LHUL
$XWKRU 35H[SHUW%ULDQ6ROLV-RKQQ\'HSS
:LQH/LEUDU\WYµV*DU\9D\QHUFKXFN-RH3HVFL

WKHOLQH³,¶PPDGDVKHOODQG,¶PQRWJRLQJWRWDNHWKLVDQ\PRUH´%XWWKH
UHVXOWVPLJKWEHVLPLODU
%RQXVFRQWHQW
%86,1(6623325781,7,(6:(%/2*
,QYHQWRU¶V-RXUQDO%LOO3KHOSV
-8/30
-RLQ5LFK:KLWWOHDVKHWDONVZLWKLQYHQWRU%LOO3KHOSVDERXWKLVJDPH
FUHDWLRQ<DPRGR
:HGQHVGD\RQ'DQH&DUOVRQ¶V%XVLQHVV2SSRUWXQLWLHV:HEORJ
%/2*0$9(5,&.
PDUNFXEDQ
-8/30
,MXVWLQYHVWHGLQDFRPSDQ\WKDWWDNHVYLGHRRIDQDUHDDQGFDQWHOO\RX
0H"2K,DOPRVWIRUJRW-RKQQ\&DUVRQ H[DFWO\KRZPDQ\SHRSOHDUHLQWKHFDSWXUHDUHDDWDQ\JLYHQWLPH,W¶V
JUHDWIRUWUDIILFSDWWHUQVVHFXULW\DQGPXFKPRUH:HDUHSRVWLQJ
FDPHUDVLQFHUWDLQHQYLURQPHQWVZKHUHDQRQ\PLW\LVUHTXLUHGDQGZH
GRQ¶WDQGZRQ¶WFDSWXUHIDFHVRUDQ\WKLQJWKDWFRXOGLGHQWLI\DQ
LQGLYLGXDO:HZLOOVLPSO\SURYLGHLQFUHGLEO\DFFXUDWHWUDIILF
LQIRUPDWLRQDQGSDWWHUQV$JUHDWDSSOLFDWLRQZLWKJUHDWRSSRUWXQLW\
7KHQH[WH[WHQVLRQLVWRLQVWDOOLWLQSODFHVZKHUHZHFDQDGGIDFLDO
UHFRJQLWLRQVRIWZDUH6RUDWKHUWKDQVRPHRQHFKHFNLQJLQWRDVSHFLILF
DSSOLFDWLRQZHZRXOGDOUHDG\NQRZ\RXDUHWKHUH
2IFRXUVHWKHUHZRXOGKDYHWREH³RSWRXW´PHFKDQLVPV2IFRXUVHWKHUH
ZRXOGEHDEDWWOHRYHUZKHWKHURUQRWDVWRUHRUYHQXHVKRXOGEH³RSWLQ´
YVDXWRPDWHGUHFRJQLWLRQEXWWKDW¶VQRWDVRIWZDUHLVVXH7KHUHDOLW\LV
WKDWLWVVROYHV³WKHSDWKRIOHDVWUHVLVWDQFH´LVVXHZLWKFKHFNLQVIRU
ORFDWLRQEDVHGVRIWZDUH,QGLYLGXDOVQHYHUGRDQ\RIWKHZRUN7KH
VWRUHKRVWUHFRJQL]HV\RXDUHWKHUHDQGUHZDUGV\RXIRUDOORZLQJ\RXU
LGHQWLW\DQGLQIRUPDWLRQWREHFDSWXUHGDQGOLQNHG,I$PD]RQFDQ
³ZHOFRPHXVEDFN´DQGRIIHUXVSHUVRQDOL]HGVSHFLDOVZK\VKRXOGQW
EULFNDQGPRUWDUHVWDEOLVKPHQWV"
1RWKLVLVQ¶WWKHDUHPDNHRIWKHPRYLH1HWZRUNIDPRXVIRU

(YHQPRUHLQWHUHVWLQJLVWKHIDFWWKDW)DFHERRNSURYLGHVDGDWDEDVHRI
PPSHRSOHDQGWKHLUQDPHVIURPDURXQGZRUOG:KLOHQRWDOOSURILOH
SLFWXUHVDUHJRLQJWREHYDOLGLQIDFLDOUHFRJQLWLRQVRIWZDUHPRVWZLOO
)HZSHRSOHH[FOXGHWKHLUEDVLFQDPHDQGSLFWXUHLQIRUPDWLRQIURP
SXEOLFVHDUFKVR)%FRXOGEHWKHILUVWWRSURYLGHDGDWDEDVHRIQDPHVDQG
IDFHVWRWKHFRPPHUFLDOZRUOGRIIDFLDOUHFRJQLWLRQ
/RFDWLRQ&KHFNLQLVVR

6(7+¶6%/2*
,VHYHU\WKLQJSHUIHFW"
-8/30
*UHHWLQJVKDYHWUDGLWLRQDOO\EHHQDQDFNQRZOHGJPHQWRIWKHRWKHU
SHUVRQ³,VHH\RX´³+HOOR´³*UHHWLQJV´
7KHQZHPRYHGRQWR³KRZDUH\RX"´RUHYHQ³KRZ¶VEXVLQHVV"´
5HFHQWO\WKRXJKRXUSHUIRUPDQFHREVHVVHGOLYHIRUHYHUVRFLHW\KDV
PRUSKHGWKHJUHHWLQJLQWRVRPHWKLQJOLNH³SOHDVHOLVWHYHU\WKLQJJRLQJ
RQLQ\RXUOLIHWKDWLVQ¶WDVSHUIHFWDVLWVKRXOGEH´
,QDEXVLQHVVVHWWLQJWKLVFDXVHVEDGSULRULWL]DWLRQGHFLVLRQV7KHRZQHU
RIWKHEDUVD\VWRWKHPDQDJHU³KRZZDVWKHQLJKW"´DQGWKHUHVSRQVHLV
³WKHFDVKUHJLVWHUFDPHXSVKRUW´6XGGHQO\WKHUH¶VDQXUJHQW
SUREOHPWREHVROYHG+RZWRUHSODFHWKHHLJKWGROODUVDQGZKRGRZH
ILUH"
,IWKHTXHVWLRQLQVWHDGKDGEHHQ³ZKDW¶VXS"´DVLQOLWHUDOO\XSWKH

DQVZHUPLJKWKDYHEHHQ³ZHOOWKHUH¶VDELJSDUW\DWWDEOHDQRWKHU
JRLQJDZD\SDUW\7KH\¶YHEHHQEX\LQJFKDPSDJQHDOOQLJKW$QG0DU\
WROGPHVKHVHWDQHZUHFRUGIRUWLSV$QGWKHQHZEHHUZHDGGHGRQWDS
LV´
+LJKOLJKWLQJZKDW¶VZRUNLQJKHOSV\RXPDNHWKDWKDSSHQPRUHRIWHQ
3HUIHFWLVRYHUUDWHG3HUIHFWGRHVQ¶WVFDOHHLWKHU
,¶PQRWSURSRVLQJ\RXHQGRUVHWKHIWRULJQRUHWKHEDGQHZV%XWLW¶VFOHDU
WKDWRQHPRUHJRLQJDZD\SDUW\RQWDEOHLVJRLQJWRPDNHXSIRUWKDW
RQHSLHFHRIEDGQHZVHYHU\WLPH

Tabbloid Total

Hochgeladen von

Dokumentinformationen

Originaltitel

Copyright

Verfügbare Formate

Dieses Dokument teilen

Dokument teilen oder einbetten

Freigabeoptionen

Stufen Sie dieses Dokument als nützlich ein?

Sind diese Inhalte unangemessen?

Copyright:

Verfügbare Formate

Tabbloid Total

Hochgeladen von

Copyright:

Verfügbare Formate

-XQH

%86,1(6623325781,7,(6:(%/2* $UHFRUGHGFRQYHUVDWLRQ ZLWKHGLWHGWUDQVFULSW EHWZHHQ

)UHH0XVW5HDG5HSRUWIRU ZULWHUHQWUHSUHQHXU%ULDQ&ODUN KH\WKDW¶VPH DQG

 )LYH6WDU3DLQWLQJDIUDQFKLVH  0XJJ %HDQDIUDQFKLVH

 +XUULFDQH*ULOO :LQJVDIUDQFKLVH  3L]]D+XWDIUDQFKLVH

7KHELJOHVVRQKHUH6RFLDOPHGLDLVQRWDERXWDGYHUWLVLQJ DQG 6WDUEXFNVGLGQ¶WEHFRPH6WDUEXFNVE\JHWWLQJGLVFRYHUHGE\2SUDK

,¶YHKHDUGSHRSOHFRPSODLQLQJ RUEUDJJLQJ WKDWWKH\ZRXOGDFKLHYH

,WPDNHVFRPSDQLHVEHWWHU,WPDNHVLQGXVWULHVEHWWHU,WPDNHVWKH &KHFNRXWWKLVYLGHRWROHDUQPRUH DQGVHHDZKROHEXQFKPRUHRQRXU

+RZWRJHWDPLOOLRQUHDGHUV 5HPHPEHU7KHVH"$7 7¶V<RX

6RWKHQZK\QRWGRLW"7LPH" 0DQ\EXVLQHVVHVIRFXVH[FOXVLYHO\RQVDYLQJPRQH\ RUVRWKH\WKLQN

<RXFDQWKHQSXEOLVKWKLVLQDVHSDUDWHSRVW ZKLFKLVJUHDWIRU6(2 7KH%ORJ3RVW&KHFNOLVW$IWHU<RX3XEOLVK<RXU3RVW

,I\RX¶UHUXQQLQJD:RUG3UHVVEORJHYHU\WKHPH ,EHOLHYH KDVD

 GBVNLQ 6TXDUHLVDQHZVWDUWXSWKDWZDVFRIRXQGHGE\-DFN'RUVH\ WKHJX\

H[SDQG\RXUDXGLHQFHEDVH ,GHILQLWHO\UHFRPPHQGKROGLQJDZHELQDU, ZHELQDUVDQG\RXFDQ¶WUHDOO\H[SHFWHYHU\RQHWRVKRZXS

3KRWRE\:DONHU &RPSDQ\6LPRQ 6FKXVWHU%DFN%D\%RRNV

SKRWRFUHGLW6WDUV *R %OXH SKRWRFUHGLW/RRS=LOOD

RYHUYLHZRIZKDW\RX¶UHJRLQJWRFRYHUDQGDSSUR[LPDWHO\KRZORQJLW KDVDUHFRJQL]DEOHWXQH LHDSRGFDVWZLWKLQWURPXVLF WKHQ\RXPD\

<RXFDQXVHVRIWZDUHVXFKDV&DPWDVLD6WXGLRV IRU3& RU&DPWDVLDIRU %HFRPHD)DQRIWKH6PDUW3DVVLYH,QFRPH%ORJRQ)DFHERRNDQGMRLQ

0RJXO ,PDJHIURP6WHOOD &KHZ\¶V

7KHDOOIRRG*UHHQSRLQWPDUNHWZKLFKLVRSHQWRKRPHFRRNV %URZQLHLFHFUHDPZDVERUQ²RQHRI%HQ -HUU\¶VPRVW

,W¶VDOVRLPSRUWDQWWRLQFOXGHDUHDOGHVFULSWLRQ DIWHU\RXUOLQN WKDW &22/75,&.,I\RXSODQRQXSORDGLQJDQXPEHURIYLGHRV\RX

DOVRYHUEDOL]HZKDWOHWWHU\RX¶UHWRXFKLQJZKHQ\RXUXQ\RXUILQJHUVRYHU DQGHYHU\WKLQJ ZLWKDGUDZLQJRID)DFHERRN³/LNH´EXWWRQRQWKH

$QG\6HUQRYLW] +XJK ,IQRW²,FRPSHO\RXWRPDNHLW:21'(5)8/2875$*(286

&XUUHQWO\WKH6PDOO%XVLQHVV$GPLQLVWUDWLRQ¶V 6%$ KDVVHW

EUDQG±\RXURPQLSUHVHQWLQIOXHQWLDODQG LIDSSOLFDEOH PRQH\ +DYH\RXHYHUWKRXJKWDERXWH[SDQGLQJ\RXUEUDQGRQWRRWKHUPHGLD

.DUPD7R'R/LVW SDVVLWRQ 6RHDV\WRWDONDERXWOXQFK

'$01,:,6+,¶'7+28*+72)7+$7  &RQYHUVHRQ±/LQGVD\/HEUHVFR 7ZLWWHU±SHUVRQDO

:DQWSHRSOHWRVSUHDGWKH  0DUNHWLQJ6DYDQW±'DQD9DQ'HQ+HXYHO 7ZLWWHU±SHUVRQDO

ZRUG"8VHWKHLUQDPHDQGPDNH  1DWLRQDO*HRJUDSKLF±%UHQGDQ+DUW 7ZLWWHU±EUDQG

LWSHUVRQDO  %UDQG%XLOGHU±2OLYLHU%ODQFKDUG 7ZLWWHU

7KH\GLGMXVWWKDWLQWKHLUSRVWWRGD\DERXWRXU&KDULW\:DWHUSURMHFW  'RXJODV$WNLQ 7ZLWWHU±SHUVRQDO ±DXWKRU7KH&XOWLQJRI

 (VWHH/DXGHU&RPSDQLHV±6DP'HFNHU 7ZLWWHU±SHUVRQDO /HDUQPRUHDERXW&KDULW\:DWHUDQGKRZ\RXFDQJHWLQYROYHG

 'XFN%UDQG±'DYLG5RGJHUV 7ZLWWHU±EUDQG /HDUQDERXWWKH:RUGRI0RXWK6XSHUJHQLXVFRQIHUHQFH

%DUQHV 1REOH%HVW%X\%RHLQJ&DPSEHOO6RXS&DSLWDO2QH&KDUOHV ,PSRUWDQWQRWH$WWHQGHHVRI*DV3HGDOFRQIHUHQFHVUHSRUWZKLWHUWHHWK

'DWDIRUDERXWXQLYHUVLWLHV PRVWO\$PHULFDQ LV

=25%JOREHULGLQJ JHQHULFDOO\NQRZQDVJOREHULGLQJ LVWKH

,IWKHTXHVWLRQLQVWHDGKDGEHHQ³ZKDW¶VXS"´ DVLQOLWHUDOO\XS WKH

Das könnte Ihnen auch gefallen

-XQH

%86,1(6623325781,7,(6:(%/2* $UHFRUGHGFRQYHUVDWLRQZLWKHGLWHGWUDQVFULSWEHWZHHQ

)UHH0XVW5HDG5HSRUWIRU ZULWHUHQWUHSUHQHXU%ULDQ&ODUNKH\WKDW¶VPHDQG

)LYH6WDU3DLQWLQJDIUDQFKLVH 0XJJ %HDQDIUDQFKLVH

+XUULFDQH*ULOO :LQJVDIUDQFKLVH 3L]]D+XWDIUDQFKLVH

7KHELJOHVVRQKHUH6RFLDOPHGLDLVQRWDERXWDGYHUWLVLQJDQG 6WDUEXFNVGLGQ¶WEHFRPH6WDUEXFNVE\JHWWLQJGLVFRYHUHGE\2SUDK

,¶YHKHDUGSHRSOHFRPSODLQLQJRUEUDJJLQJWKDWWKH\ZRXOGDFKLHYH

,WPDNHVFRPSDQLHVEHWWHU,WPDNHVLQGXVWULHVEHWWHU,WPDNHVWKH &KHFNRXWWKLVYLGHRWROHDUQPRUHDQGVHHDZKROHEXQFKPRUHRQRXU

+RZWRJHWDPLOOLRQUHDGHUV 5HPHPEHU7KHVH"$7 7¶V<RX

6RWKHQZK\QRWGRLW"7LPH" 0DQ\EXVLQHVVHVIRFXVH[FOXVLYHO\RQVDYLQJPRQH\RUVRWKH\WKLQN

<RXFDQWKHQSXEOLVKWKLVLQDVHSDUDWHSRVWZKLFKLVJUHDWIRU6(2 7KH%ORJ3RVW&KHFNOLVW$IWHU<RX3XEOLVK<RXU3RVW

,I\RX¶UHUXQQLQJD:RUG3UHVVEORJHYHU\WKHPH,EHOLHYHKDVD

GBVNLQ 6TXDUHLVDQHZVWDUWXSWKDWZDVFRIRXQGHGE\-DFN'RUVH\WKHJX\

H[SDQG\RXUDXGLHQFHEDVH,GHILQLWHO\UHFRPPHQGKROGLQJDZHELQDU, ZHELQDUVDQG\RXFDQ¶WUHDOO\H[SHFWHYHU\RQHWRVKRZXS

3KRWRE\:DONHU &RPSDQ\6LPRQ 6FKXVWHU%DFN%D\%RRNV

SKRWRFUHGLW6WDUV *R %OXH SKRWRFUHGLW/RRS=LOOD

RYHUYLHZRIZKDW\RX¶UHJRLQJWRFRYHUDQGDSSUR[LPDWHO\KRZORQJLW KDVDUHFRJQL]DEOHWXQHLHDSRGFDVWZLWKLQWURPXVLFWKHQ\RXPD\

<RXFDQXVHVRIWZDUHVXFKDV&DPWDVLD6WXGLRVIRU3&RU&DPWDVLDIRU %HFRPHD)DQRIWKH6PDUW3DVVLYH,QFRPH%ORJRQ)DFHERRNDQGMRLQ

7KHDOOIRRG*UHHQSRLQWPDUNHWZKLFKLVRSHQWRKRPHFRRNV %URZQLHLFHFUHDPZDVERUQ²RQHRI%HQ -HUU\¶VPRVW

,W¶VDOVRLPSRUWDQWWRLQFOXGHDUHDOGHVFULSWLRQDIWHU\RXUOLQNWKDW &22/75,&.,I\RXSODQRQXSORDGLQJDQXPEHURIYLGHRV\RX

DOVRYHUEDOL]HZKDWOHWWHU\RX¶UHWRXFKLQJZKHQ\RXUXQ\RXUILQJHUVRYHU DQGHYHU\WKLQJZLWKDGUDZLQJRID)DFHERRN³/LNH´EXWWRQRQWKH

$QG\6HUQRYLW] +XJK ,IQRW²,FRPSHO\RXWRPDNHLW:21'(5)8/2875$*(286

&XUUHQWO\WKH6PDOO%XVLQHVV$GPLQLVWUDWLRQ¶V6%$KDVVHW

EUDQG±\RXURPQLSUHVHQWLQIOXHQWLDODQGLIDSSOLFDEOHPRQH\ +DYH\RXHYHUWKRXJKWDERXWH[SDQGLQJ\RXUEUDQGRQWRRWKHUPHGLD

.DUPD7R'R/LVWSDVVLWRQ 6RHDV\WRWDONDERXWOXQFK

'$01,:,6+,¶'7+28*+72)7+$7 &RQYHUVHRQ±/LQGVD\/HEUHVFR7ZLWWHU±SHUVRQDO

:DQWSHRSOHWRVSUHDGWKH 0DUNHWLQJ6DYDQW±'DQD9DQ'HQ+HXYHO7ZLWWHU±SHUVRQDO

ZRUG"8VHWKHLUQDPHDQGPDNH 1DWLRQDO*HRJUDSKLF±%UHQGDQ+DUW7ZLWWHU±EUDQG

LWSHUVRQDO %UDQG%XLOGHU±2OLYLHU%ODQFKDUG7ZLWWHU

7KH\GLGMXVWWKDWLQWKHLUSRVWWRGD\DERXWRXU&KDULW\:DWHUSURMHFW 'RXJODV$WNLQ7ZLWWHU±SHUVRQDO±DXWKRU7KH&XOWLQJRI

(VWHH/DXGHU&RPSDQLHV±6DP'HFNHU7ZLWWHU±SHUVRQDO /HDUQPRUHDERXW&KDULW\:DWHUDQGKRZ\RXFDQJHWLQYROYHG

'XFN%UDQG±'DYLG5RGJHUV7ZLWWHU±EUDQG /HDUQDERXWWKH:RUGRI0RXWK6XSHUJHQLXVFRQIHUHQFH

%DUQHV 1REOH%HVW%X\%RHLQJ&DPSEHOO6RXS&DSLWDO2QH&KDUOHV ,PSRUWDQWQRWH$WWHQGHHVRI*DV3HGDOFRQIHUHQFHVUHSRUWZKLWHUWHHWK

'DWDIRUDERXWXQLYHUVLWLHVPRVWO\$PHULFDQLV

=25%JOREHULGLQJJHQHULFDOO\NQRZQDVJOREHULGLQJLVWKH

,IWKHTXHVWLRQLQVWHDGKDGEHHQ³ZKDW¶VXS"´DVLQOLWHUDOO\XSWKH