July–September 2010

$OVRLQWKLVHGLWLRQ
 ,QGLD·V)DYRULWH6RQ6XUJHRQ%ULQJV&DUGLDF
&DUHWRWKH3RRU
 0LFURLQVXUDQFH³$+DUG6HOO$PRQJ
$VLD·V:RUNLQJ3RRU
 )RUPHU(QHUJ\0LQLVWHU9LQFHQW3HUH]RQ
5HQHZDEOH(QHUJ\LQWKH5HJLRQ

$SXEOLFDWLRQRIWKH$VLDQ'HYHORSPHQW%DQN

/LJKWLQJWKH)XWXUH
Asia scrambles to produce more and cleaner energy to fuel its rapid growth
 PUBLISHER’S NOTE

:::'(9(/230(17$6,$
ĝ$VLDQ'HYHORSPHQW%DQN
,661
$6,$1'(9(/230(17%$1.

Publisher $QQ4XRQ
$VLD·V(QHUJ\&KDOOHQJH
Editorial and Creative Director
&DURO\Q'HGROSK&DEUHUD
Managing Editor (ULF+HDO\

,
Senior Editor )OR\G:KDOH\
IRQHTXHVWLRQFRXOGWKUHDWHQ$VLD·VG\QDPLFJURZWKDQGLPSUHVVLYHJDLQV
Editorial Advisor $QLO7HUZD\ LQSRYHUW\UHGXFWLRQLQUHFHQWGHFDGHVLWLVWKHUHJLRQ·VHQHUJ\VXSSO\7KH
Associate Editor 0DULD/L]D6RODQR FRPSOH[LVVXHVWKDWHQFRPSDVVHQHUJ\VHFXULW\DUHYLWDOIRUHQVXULQJDUHJLRQ·V
Copy Editor&DUROLQH$KPDG
Art Director $QG\0DUWLQ
HFRQRPLFJURZWK
Development AsiaIHDWXUHVGHYHORSPHQWLVVXHV
,WLVQRWMXVWDPDWWHURIPDLQWDLQLQJWKHVXSSO\RIHQHUJ\WKDW$VLDQHHGVWRIXHO
LPSRUWDQWWR$VLDDQGWKH3DFLðF,WLVSXEOLVKHG
IRXUWLPHVD\HDUE\WKH$VLDQ'HYHORSPHQW
LWVJURZWK7KHUHJLRQPXVWDOVRQDYLJDWHWKHWUHDFKHURXVZDWHUVRIFRQÁLFWDQG
%DQNDQG+D\PDUNHW0HGLD/WG7KHYLHZV
H[SUHVVHGLQWKLVPDJD]LQHDUHWKRVHRIWKH
FRRSHUDWLRQZKHQLWFRPHVWRDFFHVVLQJHQHUJ\UHVRXUFHV2QWRSRIWKHVHFKDOOHQJHV
DXWKRUVDQGGRQRWUHñHFWWKHYLHZVDQGSROLFLHV
RIWKH$VLDQ'HYHORSPHQW%DQNDQG+D\PDUNHW
OLHWKHHQHUJ\LPSOLFDWLRQVRIFOLPDWHFKDQJHPDQ\QRZEHOLHYHWKDWWKHFKHDSHVW
0HGLD/WG8VHRIWKHWHUPFRXQWU\GRHVQRW
LPSO\DQ\MXGJPHQWE\WKHDXWKRUVRUWKH$VLDQ
PRVWDEXQGDQWIXHOV³VXFKDVFRDO³FDQQRORQJHUEHWKHSULPDU\VRXUFHVRI
'HYHORSPHQW%DQNDQG+D\PDUNHW0HGLD/WGDV
WRWKHOHJDORURWKHUVWDWXVRIDQ\WHUULWRULDOHQWLW\
HQHUJ\IRUWKHUHJLRQ$VLDPXVWWDNHWKHOHDGLQVXSSO\LQJDQGFRQVXPLQJFOHDQHU
$GYHUWLVLQJRIDQ\VSHFLðFFRPPHUFLDOSURGXFW
UHQHZDEOHHQHUJ\
SURFHVVVHUYLFHE\WUDGHQDPHWUDGHPDUN
PDQXIDFWXUHURURWKHUZLVHLQWKLVSXEOLFDWLRQ
$FFRUGLQJWRWKH,QWHUQDWLRQDO(QHUJ\$JHQF\WKHHPHUJLQJHFRQRPLHVLQWKH
GRHVQRWFRQVWLWXWHRULPSO\$'%âVHQGRUVHPHQW
UHFRPPHQGDWLRQRUIDYRULQJRIDQ\RIWKH
UHJLRQOHGE\WKH3HRSOH·V5HSXEOLFRI&KLQDDQG,QGLDDUHGULYLQJZRUOGHQHUJ\
SURGXFWRUWKHHQWLW\WKHUHRI GHPDQGGHPRQVWUDWLQJDJURZLQJDSSHWLWHERWKIRUIRVVLOIXHOVDQGUHQHZDEOH
COMMENTS
6HQG\RXUIHHGEDFNWRWKHHGLWRUDW
VRXUFHVRIHQHUJ\<HWPRUHWKDQPLOOLRQSHRSOHLQ$VLDDQGWKH3DFLÀFVWLOOKDYH
OHWWHUV#GHYHORSPHQWDVLD QRDFFHVVWRHOHFWULFLW\
ADVERTISING
7RDGYHUWLVHLQDevelopment AsiaFRQWDFW
$JDLQVWWKLVEDFNGURSWKLVLVVXHRI'HYHORSPHQW$VLDWDNHVDEURDGORRNDWHQHUJ\
DGYHUWLVLQJ#GHYHORSPHQWDVLD VHFXULW\LQ$VLD7KHSURVSHFWVDQGFKDOOHQJHVDVVRFLDWHGZLWKFRDOUHQHZDEOHHQHUJ\
SUBSCRIPTIONS
&RQWDFWVXEVFULSWLRQV#GHYHORSPHQWDVLD
RLODQGJDVDQGWKHVHQVLWLYHDUHDRIQXFOHDUHQHUJ\GHYHORSPHQWDUHH[SORUHGLQ
GHWDLO7KHJDUJDQWXDQLQIUDVWUXFWXUHFKDOOHQJHVDVVRFLDWHGZLWKWKHUHJLRQ·VDJLQJ
SRZHUWUDQVPLVVLRQJULG³DYLWDODVSHFWRIUHJLRQDOFRRSHUDWLRQLQHQHUJ\³LV
H[DPLQHGE\QHZFRQWULEXWRU-RKQ2WLVDQDXWKRUDQG7LPHPDJD]LQHFRUUHVSRQGHQW
7KLVHGLWLRQDOVRH[DPLQHVWKHSOLJKWRIPLOOLRQVRISHRSOHLQ$VLDZKRQHYHU
REWDLQHGELUWKFHUWLÀFDWHV$VLPSOHSURFHVVLQPDQ\FRXQWULHVLWFDQEHDFULSSOLQJ
SUREOHPIRUWKRVHZKRVHELUWKVDUHQHYHUUHJLVWHUHG7KH\DUHRIWHQLQYLVLEOHWR
REPRINTS
0DWHULDOSXEOLVKHGLQDevelopment Asia
JRYHUQPHQWUHSRUWVUHJXODUFRQWULEXWRU.DUHQ(PPRQV8QSURWHFWHGE\ODERU
DQGRQZZZGHYHORSPHQWDVLDLQFOXGLQJ
DUWLFOHVSKRWRVJUDSKLFVDQGRWKHUFRQWHQWLV
ODZVDQGOHIWRXWRIPDQ\VRFLDOVDIHW\QHWSURJUDPVWKH\DUHDPRQJ$VLD·VPRVW
FRS\ULJKWHG0DWHULDOPD\QRWEHUHSURGXFHG
UHSXEOLVKHGRUUHGLVWULEXWHGZLWKRXWZULWWHQ
YXOQHUDEOHSHRSOH
SHUPLVVLRQRIDevelopment Asia)RU
UHSULQWSHUPLVVLRQSOHDVHFRQWDFWHGLWRU#
'HYHORSPHQW$VLDLVJURZLQJTXLFNO\,QHDFKHGLWLRQLWVHGLWRULDOFRYHUDJHH[SDQGV
GHYHORSPHQWDVLD3KRWRJUDSKVQRWRZQHG
E\$'%UHTXLUHSHUPLVVLRQIURPWKHFRS\ULJKW
ZLWKLWVUHDGHUVKLSDQGUHDFK&RPLQJHGLWLRQVZLOOVHHPRUHH[FLWLQJDQGLQWHUHVWLQJ
KROGHUIRUUHSULQWLQJ FKDQJHV$YLWDOLQJUHGLHQWLQWKHPDJD]LQH·VGHYHORSPHQWLV\RX:HQHHG\RXU
'HYHORSPHQW$VLD
'HSDUWPHQWRI([WHUQDO5HODWLRQV
WKRXJKWVDQGLQSXWWRGHYHORSWKLVSXEOLFDWLRQ$QGZHYDOXH\RXURSLQLRQVDERXW
$VLDQ'HYHORSPHQW%DQN
$'%$YHQXH0DQGDOX\RQJ&LW\
WKHDUWLFOHV\RXUHDGLQLWVSDJHV7DONWRXVDWOHWWHUV#GHYHORSPHQWDVLD
0HWUR0DQLOD3KLOLSSLQHV
HGLWRU#GHYHORSPHQWDVLD
:H·UHOLVWHQLQJQ
ZZZDGERUJ

&RYHUSKRWR6LQJDSRUHVN\OLQHDWQLJKW
3LFWXUHFUHGLW,PDJH6RXUFH
1RWH,QWKLVSXEOLFDWLRQUHIHUVWR86
GROODUV

$QQ4XRQ
3XEOLVKHU

$SXEOLFDWLRQRIWKH$VLDQ'HYHORSPHQW%DQN
GHVLJQHGDQGGLVWULEXWHGE\+D\PDUNHW
0HGLD/LPLWHG

ZZZGHYHORSPHQWDVLD -XO\²6HSWHPEHU'HYHORSPHQW$VLD
 &217(176
<($5,,,180%(59,,,-8/<ò6(37(0%(5
16 GETTING GREEN POWER ON THE GRID 52 REGISTERING ALL ASIA’S BABIES
)2&86
(1(5*<6(&85,7<
7+(%,*5($'
0(*$:$77:255,(6
7KHZLGHQLQJJDSEHWZHHQHQHUJ\
VXSSO\DQGGHPDQGLQ$VLDDQGWKH
3DFLÀFFRXOGSXWWKHEUDNHVRQWKH
UHJLRQ·VHFRQRPLFSURVSHULW\
%\'DQD:LOOLDPV
BBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBB
7+(%,*3,&785(
(1(5*<6(&85,7<,1$6,$$1'
7+(3$&,),&
7KHUHJLRQKDVWKHSRWHQWLDOWRPHHWLWV
HQHUJ\QHHGVZLWKOLWWOHRUQRLPSRUWHG
HQHUJ\$FRRSHUDWLYHUHJLRQZLGH
HIIRUWLVNH\
%\0DUN%ODFNZHOO
BBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBB
7+(%,*92,&(
7$,/:,1'6
,QDQH[FOXVLYHLQWHUYLHZIRUPHU
3KLOLSSLQHV(QHUJ\6HFUHWDU\9LQFHQW
3HUH]GLVFXVVHVWKHLPSDFWRIHQHUJ\
SROLF\RQSRYHUW\DQGWKHFKDOOHQJHV
IRUDJUHHQHQHUJ\UHYROXWLRQLQ$VLD
%\)OR\G:KDOH\
BBBBBBBBBBBBBBBBBBBBBBBBBBBBBBB
&/2**('$57(5,(6
1HZSRZHUSODQWVKDYHVSUXQJXS
DFURVV$VLDEXWWKHFRQVWUXFWLRQRI
JULGVDQGWKHXSJUDGLQJDQGH[WHQVLRQ
RIWKHH[LVWLQJSDWFKZRUNRISRZHU
OLQHVKDYHQRWNHSWSDFH
%\-RKQ2WLV
'HYHORSPHQW$VLD -XO\²6HSWHPEHU
2/'.,1*&2$/
7KRXJKFRQWURYHUVLDOWKLVFKHDSDQG
DEXQGDQWUHVRXUFHIXHOV$VLD·VJURZWK
%\%UXFH+HLOEXWK
BBBBBBBBBBBBBBBBBBBBBBBBBBBBBBB
$6,$*2(618&/($5
'ULYHQE\VRDULQJHQHUJ\GHPDQG
DPRQJRWKHUIDFWRUV$VLDQFRXQWULHV
WRGD\DUHGULYLQJWKHJOREDOVXUJHLQ
QXFOHDUSRZHUGHYHORSPHQW
%\:LOOLDP%UDQLJLQ
BBBBBBBBBBBBBBBBBBBBBBBBBBBBBBB
7+(*5((15$&(
$VLDLVEHWWLQJELJRQUHQHZDEOH
HQHUJ\&DQLWGHOLYHU"
%\-DPHV+XWFKLVRQ
BBBBBBBBBBBBBBBBBBBBBBBBBBBBBBB
&58'($'',&7,21
2LODQGJDVKDYHKHOSHGGULYH$VLD·V
SKHQRPHQDOJURZWK1RZWKH
UHJLRQPXVWIDFHWKHGRZQVLGHRILWV
GHSHQGHQF\
$OVRVLGHEDU2))7+(5$,/6,1
,1'21(6,$
7KHQDWLRQ·VUDLOZD\QHWZRUNKDVEHHQ
VKULQNLQJIRUGHFDGHV
%\-RH&RFKUDQHDQG'DQD:LOOLDPV
BBBBBBBBBBBBBBBBBBBBBBBBBBBBBBB
$57,&/(6
$60$//+$5'6(//
0LFURLQVXUDQFHVWUXJJOHVWRWDNHRII
ZLWKWKRVHZKRQHHGLWPRVW
%\0DUJR3IHLII
60 CANING POVERTY WITH BAMBOO
,19,6,%/($6,$
0DQ\ELUWKVLQ$VLDDUHQHYHUUHFRUGHG
$VWKRVHFKLOGUHQJURZXSWKHODFNRI
ELUWKUHJLVWUDWLRQFRPSOLFDWHV³LQVRPH
FDVHVHYHQUXLQV³WKHLUOLYHV
%\.DUHQ(PPRQV
BBBBBBBBBBBBBBBBBBBBBBBBBBBBBBB
352),/(6,1'(9(/230(17
.,1*2)+($576
,QGLD·VPRVWIDPRXVKHDUWVXUJHRQ
KDVPDGHFDUGLDFFDUHIRUPLOOLRQVRI
ZRUNLQJSRRUSRVVLEOH
%\-DPHV+XWFKLVRQ
BBBBBBBBBBBBBBBBBBBBBBBBBBBBBBB
5(&211$,66$1&(
$1&,(17*5$665(%251
%DPERRKHOSV$VLD·VUXUDOSRRUFXWD
JUHHQSDWKRXWRISRYHUW\
%\-DPHV+XWFKLVRQ

BBBBBBBBBBBBBBBBBBBBBBBBBBBBBBB
'(3$570(176
2))7+(35(66
6QLSSHWVIURPWKHSULQWZRUOGRQ
GHYHORSPHQWLVVXHV
BBBBBBBBBBBBBBBBBBBBBBBBBBBBBBB
217+(:(%
1RWHZRUWK\FRUQHUVRIWKHZHE
BBBBBBBBBBBBBBBBBBBBBBBBBBBBBBB
2))7+(6+(/)
1HZDUULYDOVWROLEUDU\VKHOYHVLQWKH
VHFWLRQIRUPXVWUHDGERRNVDERXW
GHYHORSPHQWDQGHFRQRPLFV
BBBBBBBBBBBBBBBBBBBBBBBBBBBBBBB
217+(5(&25'
7KHTXRWHZRUWK\VRXQGRII
ZZZGHYHORSPHQWDVLD
 /HWWHUWRWKH(GLWRU &RQWULEXWRUV
,QFRPH6HFXULW\)LUVW 0DUN%ODFNZHOOKDVPRUHWKDQ\HDUV -DPHV+XWFKLVRQKDV

7KHIRFXVRQIRRGVHFXULW\RIWKH
UHFHQWLVVXHRI'HYHORSPHQW$VLDLV
DWLPHO\UHPLQGHURQWKHXUJHQW
QHHGWRUHIRFXVGHYHORSPHQW
HIIRUWVRQDJULFXOWXUHDQGÀVKHULHV
7KHNH\WRIRRGVHFXULW\LV
RIH[SHULHQFHFRYHULQJLVVXHVUDQJLQJ
IURPVFLHQFHDQGHFRQRPLFVWRSROLWLFV
DQGFURVVERUGHULVVXHVLQ/DWLQ$PHULFD
IRUQHZVRUJDQL]DWLRQVLQFOXGLQJWKH
+HDUVW&RUSRUDWLRQDQG&DSLWDO&LWLHV$%&
+HVSHFLDOL]HVLQLQIRUPDWLRQJUDSKLFV
 ZRUNHGDVDZULWHUDQG
SKRWRJUDSKHULQ$VLDIRUPRUH
WKDQ\HDUV+LVZRUNKDV
DSSHDUHGLQPRUHWKDQ
LQWHUQDWLRQDOSXEOLFDWLRQV

-RKQ2WLVLVWKH&RORPELDFRUUHVSRQGHQW
WRPDNHIDUPLQJDQGÀVKLQJ :LOOLDP%UDQLJLQVHUYHGDV IRU7LPHPDJD]LQH*OREDO3RVWDQGWKH
SURÀWDEOH:LWKLQFRPHVHFXULW\
IRRGVHFXULW\ZLOOIROORZ0DNLQJ
WKLVKDSSHQZLOOUHTXLUHWKH
FRPELQHGDQGVXVWDLQHGHIIRUWVRI
ERWKWKHSULYDWHDQGSXEOLFVHFWRUV
3ULPDU\HPSKDVLVKDVWR
EHSODFHGRQLQFUHDVLQJIDUP
 6RXWKHDVW$VLDEXUHDXFKLHI
RI7KH:DVKLQJWRQ3RVWIRU
\HDUVUHSRUWLQJIURPPRUH
WKDQDGR]HQFRXQWULHVLQWKH
UHJLRQ+HZDVEDVHGLQ%DQJNRNIURP
WRDQGLQ0DQLODIURPWR
%%&3XEOLF5DGLR,QWHUQDWLRQDOSURJUDP
7KH:RUOG+HZURWH/DZRIWKH-XQJOH
WKHVWRU\RIWKUHH86PLOLWDU\FRQWUDFWRUV
NLGQDSSHGE\&RORPELDQUHEHOVDQGUHVFXHG
LQDQHODERUDWHVWLQJRSHUDWLRQSXEOLVKHGLQ
)HEUXDU\E\+DUSHU&ROOLQV3XEOLVKHUV

SURGXFWLYLW\LQRUGHUWRUHGXFH -RH&RFKUDQHLVDIRUPHU6RXWKHDVW$VLD 0DUJR3IHLIILVD&DQDGD

SURGXFWLRQXQLWFRVWVDQGWKXV
LQFUHDVHPDUJLQV%HWWHUPDUJLQV
RQLQFUHDVHGSURGXFWLRQRXWSXW
ZLOOQRUPDOO\WUDQVODWHWRKLJKHU
LQFRPHV
7HFKQRORJLHVDQGUHVRXUFHV
FRUUHVSRQGHQWIRU1HZVZHHNPDJD]LQHDQG
EXUHDXFKLHIIRU'HXWVFKH3UHVVH$JHQWXU
LQ&DPERGLD,QGRQHVLD3DNLVWDQDQG
$IJKDQLVWDQ

.DUHQ(PPRQVLVD
 EDVHGMRXUQDOLVWZKRZRUNHG
DVDVSHFLDOFRUUHVSRQGHQWIRU
5HDGHUҋV'LJHVWIRU\HDUV
6KHLVFXUUHQWO\UHVHDUFKLQJD
ERRNRQWKH$UFWLF

QHHGHGWRLQFUHDVHIDUP
SURGXFWLYLW\DUHNQRZQ,WLVD
TXHVWLRQRIPDNLQJWKHPDFFHVVLEOH
DQGDYDLODEOH,QDGGLWLRQWKHUH
DUHVWLOOYDVWWUDFNVRIODQGVXLWDEOH
WRIDUPLQJZKLFKDUHQRWSXWWR
JRRGXVHGXHWRODFNRIPDUNHW
 %DQJNRNEDVHGMRXUQDOLVWZKR
ZULWHVRQSXEOLFKHDOWKDQG
VRFLDOLVVXHV6KHUHFHQWO\
YLVLWHGUHPRWHDUHDVLQWKH
QRUWKHUQ3KLOLSSLQHVWRIROORZDGRRUWRGRRU
YDFFLQDWLRQFDPSDLJQDLPHGDWHOLPLQDWLQJ
PDWHUQDODQGQHRQDWDOWHWDQXV
)OR\G:KDOH\VHQLRUHGLWRURI'HYHORSPHQW
$VLDRSHUDWHV$VLD(GLWRULDO6HUYLFHV+LV
ZRUNKDVDSSHDUHGLQWKH,QWHUQDWLRQDO
+HUDOG7ULEXQH86$7RGD\/RV$QJHOHV
7LPHV'LVFRYHU\&KDQQHO0DJD]LQHDQG
PDQ\RWKHUPHGLDRXWOHWV

LQFHQWLYHVDQGLQIUDVWUXFWXUH 'DQD:LOOLDPVKDVZRUNHG
VXSSRUW
:HFHUWDLQO\FDQQRWLJQRUH
WKHQHHGVRISHRSOHZKRDUH
XQGHUQRXULVKHGRUJRKXQJU\
7KHWLPHWRKHOSWKHPRXWRIWKHLU
GLVWUHVVHGVWDWHLV12:
1RHOGH*X]PDQLVD+RQJ.RQJEDVHG
DUWGLUHFWRUZKRUXQVKLVRZQJUDSKLF
GHVLJQVWXGLR+HKDVZRUNHGZLWKYDULRXV
LQWHUQDWLRQDOSXEOLVKLQJDQGDGYHUWLVLQJ
DJHQFLHVVXFKDV-:7KRPSVRQ/HR
%XUQHWW$GYHUWLVLQJDQG+D\PDUNHW0HGLD
+HLVDOVRDQRWHGDUWLVWZKRKDVKDGPDMRU
 DVDMRXUQDOLVWLQWKH8QLWHG
6WDWHVDQGLQWKH3DFLÀFIRU
PRUHWKDQ\HDUV6KHKDV
FRYHUHGHFRQRPLFV
LQWHUQDWLRQDODIIDLUVFULPLQDOMXVWLFHDQG
KHDOWKLVVXHV

VRORH[KLELWLRQVDURXQG$VLD

%UXFH+HLOEXWKKDVZRUNHG
6HQHQ&%DFDQL
$JULFXOWXUH6HFUHWDU\
5HSXEOLFRIWKH3KLOLSSLQHV
(UQVW <RXQJ(QWUHSUHQHXURIWKH
<HDU3KLOLSSLQHV$ZDUGHH
 DVDMRXUQDOLVWDQGIRUHLJQ
FRUUHVSRQGHQWRQIRXU
FRQWLQHQWV+HVSHQWQHDUO\D
GHFDGHDVWKHHGLWRULQFKLHI
RI5HDGHUҋV'LJHVWPDJD]LQHҋV$XVWUDODVLDQ
DQG$VLDQ(QJOLVKHGLWLRQV

ZZZGHYHORSPHQWDVLD -XO\²6HSWHPEHU 'HYHORSPHQW$VLD

 OFF THE PRESS

&RPSLOHGE\)OR\G:KDOH\

&ORVLQJWKH'RRU :RUOG%HDWLQJ%DQNV
RQ&OLPDWHJDWH ´7KHUHLVQRPRUHSRWHQWV\PERORIWKHUHODWLYHGHFOLQHRI:HVWHUQÀQDQFHWKDQ
WKHUHYROXWLRQLQ&KLQHVHEDQNLQJRYHUWKHSDVWGHFDGH:KLOH$PHULFDQDQG
´3HUKDSVQRZZHFDQSXWWKH (XURSHDQEDQNVKDYHEHHQEXV\EORZLQJXS&KLQD·VKDYHEHHQWUDQVIRUPHGIURP
PDQXIDFWXUHGFRQWURYHUV\NQRZQDV FRPPXQLVWEXUHDXFUDFLHVFULSSOHGE\EDGGHEWVLQWRVRPHWKLQJUHVHPEOLQJZRUOG
&OLPDWHJDWHEHKLQGXVDQGWXUQWRWKH EHDWHUVµ³7KH(FRQRPLVWRQ-XO\
WDVNRIDFWXDOO\GRLQJVRPHWKLQJDERXW
JOREDOZDUPLQJµ³7KH1HZ<RUN7LPHV
RQ-XO\UHIHUULQJWRFULWLFLVPV
DJDLQVWWKH81SDQHORQFOLPDWHFKDQJH
0RWKHUV(DW/DVW
´$PRQJSRRUIDPLOLHVZKHQIRRGLVOLPLWHGLWLVWKHZRPHQZKRDUHPRUHOLNHO\WR
JLYHXSWKHLUULJKWÀUVWVRWKDWRWKHUPHPEHUVRIWKHIDPLO\FDQHDW:LWKLQIDPLOLHV
PHQ³HVSHFLDOO\IDWKHUV³DUHRIWHQJLYHQSULYLOHJHGDFFHVVWRIRRGZKLOHFKLOGUHQ
)ODZHG0HPEHUV FRPHVHFRQGDQGPRWKHUVHDWODVWDQGOHDVWµ³7KH-DNDUWD3RVWRQ)HEUXDU\

´,QDQ\GLVFXVVLRQRIWKHVKRUWFRPLQJV
RIWKH>8QLWHG1DWLRQV@LWLVYLWDOWR
UHFRJQL]HWKDWWKHRUJDQL]DWLRQZLOO
DOZD\VEHDÁDZHGRUJDQL]DWLRQVR
ORQJDVWKHFRXQWULHVWKDWPDNHXS
LWVPHPEHUVKLSDUHÁDZHGµ³7KH
,QGHSHQGHQWRQ-XO\
6WULYLQJWR%H6PRNHIUHH
´7KDLODQGZLOOQHYHUDFKLHYHWKHHQYLDEOHVPRNHIUHHVWDWXVHQMR\HGE\%KXWDQ
ZKLFKEDQQHGDOOWREDFFRVDOHVVL[\HDUVDJREXWWKH3XEOLF+HDOWK0LQLVWU\GLGWDNH
DVWHSLQWKDWGLUHFWLRQODVWZHHNZKHQLWWLJKWHQHGWKHUXOHVRQVPRNLQJLQSXEOLF
SODFHVµ³7KH%DQJNRN3RVWRQ-XO\

$5DYLQJ6XFFHVV 0RUH(TXLWDEOH
´:HFRQIRXQGHGRXUFULWLFVLQHPSKDWLFIDVKLRQE\GHOLYHULQJZKDWZLOOVXUHO\JR
GRZQLQKLVWRU\DVRQHRIWKHEHVW6RFFHU:RUOG&XSWRXUQDPHQWV$OPRVWDOORIWKH
7UHDWPHQW
PRUHWKDQDPLOOLRQIRRWEDOOIDQVZKRYLVLWHGWKHFRXQWU\RYHUWKHSDVWIRXUZHHNV ´7KH¶ÁRDWLQJSRSXODWLRQ·RIPLOOLRQ
KDYHEHHQUDYLQJDERXWWKHH[SHULHQFHµ³7KH7LPHVRI6RXWK$IULFDRQ-XO\ PLJUDQWVZKRKDYHOHIWWKH&KLQHVH
FRXQWU\VLGHWROLYHLQFLWLHVIRUPD
JURZLQJXUEDQXQGHUFODVVDQGQHHGWR
EHWUHDWHGPRUHHTXLWDEO\µ³7KH*OREH
3URPLVLQJ7RR/LWWOH DQG0DLORQ-XO\

´,WLVKDUGQRWWRIHHOWKDWWKH7RURQWR*PLVVHGLWVPRPHQW,QWKHSDVWWKH
*DLPHGWRRKLJKDQGSURPLVHGWRRPXFK,QWKHULVNLVWKHUHYHUVHWKDW
LWKDVDLPHGWRRORZDQGSURPLVHGWRROLWWOHIRUDVWLOOIUDJLOHDQGYRODWLOHJOREDO
HFRQRP\µ³7KH*XDUGLDQRQ-XQH
%XFNOH8S
´(YHQDVVFLHQFHXQUDYHOVWKHP\VWHULHV
RIOLIHZH·UHOXFN\WRKDYHVRPHP\VWHU\
OHIW:KDWZHQHHGWRNQRZPRUHWKDQ
-XVWOLNH5LGLQJD%LF\FOH ZKDWRXUJHQHWLFPDUNHUVVD\DERXWRXU
FKDQFHVLVWRH[HUFLVHEXFNOHRXUVHDW
´0HPRWR1DRWR.DQ'DYLG&DPHURQ1LFRODV6DUNR]\$QJHOD0HUNHO%DUDFN EHOWVDQGUHPHPEHUWKDWQRPDWWHUKRZ
2EDPDDQG+X-LQWDRDQG0DQPRKDQ6LQJK5XQQLQJDQHFRQRP\LVOLNHULGLQJ PDQ\\HDUVDUHOHIWWRXVWKHQXPEHU
DELF\FOH³LI\RXPDLQWDLQDJRRGVSHHG\RXFDQPDNHSURJUHVVEXWLI\RXUHGXFH LVÀQLWH³DQGQHYHUVRGLVWDQWWKDWZH
\RXUVSHHGWKHUHLVDOZD\VWKHGDQJHURIORVLQJ\RXUEDODQFHVWXPEOLQJDQGIDOOLQJ VKRXOGQHJOHFWWRDSSUHFLDWHWRGD\µ³7KH
RII³7KH-DSDQ7LPHVRQ-XO\ /RV$QJHOHV7LPHVRQ-XO\

'HYHORSPHQW$VLD -XO\²6HSWHPEHU ZZZGHYHORSPHQWDVLD

 ON THE WEB

5HVHDUFKHGDQGZULWWHQE\)OR\G:KDOH\

3OHDVH0LQG
WKH*DS

*DSPLQGHU
http://www.gapminder.org/

,
WLVUDUHZKHQVWDWLVWLFDOSUHVHQWDWLRQVFDQEHUHIHUUHG
WRDVPLQGH[SDQGLQJ%XWWKDWLVDQDSWDQGFRPPRQ
GHVFULSWLRQRIWKHDPD]LQJSUHVHQWDWLRQVRI+DQV
5RVOLQJDSURIHVVRURIJOREDOKHDOWKDW6ZHGHQ·V.DUROLQVND
7DNHD'HHS%UHDWK
,QVWLWXWHZKRZRUNVWRGLVSHOFRPPRQP\WKVDERXWWKH
GHYHORSLQJZRUOG
7KH*DSPLQGHUZHEVLWHUHIHUULQJWRWKHJDSEHWZHHQ
WKHYDVWDPRXQWRIGDWDWKDWLVRXWWKHUHDQGWKDWZKLFKLV %UHDWKLQJ(DUWK
UHDGLO\DFFHVVLEOHWRWKHSXEOLFLVLQWHUHVWLQJLQLWVHOIEXWWKH
YLGHRSDJHLVWKHEHVWSODFHWRJHWKRRNHGRQWKLVLQQRYDWLYH
GHYHORSPHQWSURIHVVLRQDO,QRQHYLGHRWLWOHG$VLD·V5LVH
+RZDQG:KHQ5RVOLQJSUHGLFWVWRWKHH[DFWGD\ZKHQWKH
3HRSOH·V5HSXEOLFRI&KLQDDQG,QGLDZLOOKDYHWKHVDPH
LQFRPHSHUSHUVRQDVWKH8QLWHG6WDWHV7KDWWDNHVQHUYH
7KHZHEVLWHLVWKHKRPHRI7UHQGDO\]HUVRIWZDUHZKLFK
VHHNVWR´XQYHLOWKHEHDXW\RIVWDWLVWLFDOWLPHVHULHVE\
http://www.breathingearth.net/

)
RUWKRVHZKRGRQ·WZRUU\HQRXJKDERXWFOLPDWH
FKDQJHWKH%UHDWKLQJ(DUWKZHEVLWHSXWVLWLQWR
SHUVSHFWLYH7KHEHDXWLIXOO\GHVLJQHGVLWHLVDJUDSKLF
LOOXVWUDWLRQRIWKHXUJHQF\RIDGGUHVVLQJWKHFKDQJHVWDNLQJ
SODFHRQ(DUWK
:KHQWKHFXUVRUVFUROOVRYHUDFRXQWU\LWJLYHVWKH
FRQYHUWLQJERULQJQXPEHUVLQWRHQMR\DEOHDQLPDWHGDQG
LQWHUDFWLYHJUDSKLFVµ,WDFKLHYHVWKDWJRDODVUHFRJQL]HGE\
*RRJOHZKLFKERXJKWWKHULJKWVWRWKHVRIWZDUHLQ0DUFK
7KHIRXQGDWLRQZKLFKGHYHORSHGDQGVXSSRUWVWKH
VRIWZDUHGHVFULEHVLWVHOIDVD´IDFWWDQNµWKDWSURPRWHVD
IDFWEDVHGZRUOGYLHZ
7KHZHEVLWHLVIXOORILQWHUHVWLQJDQGVXUSULVLQJGDWDDERXW
GHYHORSPHQWDVZHOODVHQJDJLQJYLGHRV6WDWLVWLFDOJXUXV
DUHQRWRIWHQFDOOHGIXQQ\IHDUOHVVRUPHVPHUL]LQJEXWDOO
WKUHHZRUGVGHVFULEH5RVOLQJDQGWKLVIDVFLQDWLQJZHEVLWHQ
ZZZGHYHORSPHQWDVLD
SRSXODWLRQGHDWKDQGELUWKUDWHVDQGFDUERQGLR[LGH&2
HPLVVLRQUDWHVDQGKRZPXFK&2KDVEHHQHPLWWHGVLQFH
\RXRSHQHGWKHZHEVLWH7KHVDPHÀJXUHVDUHVKRZQIRU
WKHHQWLUH(DUWK6RXUFHVFLWHGIRUWKHGDWDDUHWKH&,$:RUOG
)DFWERRNDQGWKH8QLWHG1DWLRQV6WDWLVWLFV'LYLVLRQ
7KHZHEVLWHZDUQV´$OWKRXJKWKH&2HPLVVLRQELUWK
UDWHDQGGHDWKUDWHGDWDXVHGLQ%UHDWKLQJ(DUWKFRPH
IURPUHSXWDEOHVRXUFHVGDWDWKDWPHDVXUHVWKLQJVRQVXFK
DPDVVLYHVFDOHFDQQHYHUEHDFFXUDWH3OHDVHQRWH
KRZHYHUWKDWWKH&2HPLVVLRQOHYHOVVKRZQKHUHDUHPXFK
PRUHOLNHO\WREHWRRORZWKDQWKH\DUHWREHWRRKLJKµ
%XWGDWDDQDO\VLVLVQRWUHDOO\WKHSRLQWRIWKHZHEVLWH,WV
PDLQLPSDFWLVKRZGUDPDWLFDOO\LWLOOXVWUDWHVWKHFKDQJHV
WDNLQJSODFHRQ(DUWKDQGWKHIDFWRUVLQYROYHG0RUHSHRSOH
DUHEHLQJERUQHYHU\PLQXWHWKDQDUHG\LQJLQQHDUO\
HYHU\FRXQWU\LQWKHZRUOG&2LVEHLQJSXPSHGLQWRWKH
DWPRVSKHUHDWDQDODUPLQJUDWH
7KHRYHUZKHOPLQJXUJHZKHQORRNLQJDWWKLVZHEVLWHLV
WRJHWDZD\IURPLWLQRUGHUWRVWRSVHHLQJWKHFDWDVWURSKLF
QXPEHUVVSLQQLQJDZD\%XWRIFRXUVHWKDWGRHVQ·WKHOS
:KHQ\RXOHDYHWKHVLWHWKHHPLVVLRQVGRQ·WVWRS«Q
-XO\²6HSWHPEHU 'HYHORSPHQW$VLD
 ENERGY SECURITY: THE BIG READ

0HJDZDWW:RUULHV
7KHZLGHQLQJJDSEHWZHHQHQHUJ\VXSSO\DQGGHPDQG
LQ$VLDDQGWKH3DFLILFFRXOGSXWWKHEUDNHV
RQWKHUHJLRQâVHFRQRPLFSURVSHULW\
%<'DQD:LOOLDPV

3,&785(&5(',7,0$*(6285&(

'HYHORSPHQW$VLD -XO\²6HSWHPEHU ZZZGHYHORSPHQWDVLD

 7
KHSULFHRIHQHUJ\DIIHFWV
QHDUO\HYHU\WKLQJHVSHFLDOO\
GHYHORSPHQW
´$FFHVVWRHQHUJ\DQGWKHVHUYLFHVLW
FDQSURYLGHKDVDOORZHGXVWRGRWKLQJV
PRUHTXLFNO\,WKDVOHGWRPDVVLYH
LQFUHDVHVLQSURGXFWLYLW\,IIRUVRPH
UHDVRQWKHUH·VDQLQDELOLW\WRFRQWLQXH
WRH[SDQGJHQHUDWLRQFDSDELOLWLHV
LWZLOOFKRNHGHYHORSPHQWµQRWHV
.HQQHWK0HGORFNDIHOORZLQHQHUJ\
DQGUHVRXUFHHFRQRPLFVDW5LFH
8QLYHUVLW\LQ7H[DV
0RUHSHRSOHIDVWJURZLQJFLWLHVDQG
H[SORGLQJLQGXVWU\KDYHFUHDWHGDQ
HVFDODWLQJGHPDQGIRUHQHUJ\DFURVV
$VLDDQGWKH3DFLÀFDGHPDQGWKDW
RXWVWULSVVXSSO\E\PRUHHYHU\\HDU
GHVSLWHHIIRUWVWRERRVWJHQHUDWLRQLQ
PDQ\FRXQWULHV7KLVHQHUJ\VKRUWIDOO
IRUFHVFRXQWULHVWRUHO\RQPRUH
H[SHQVLYHLPSRUWVDQG³FRXSOHGZLWK 9DVWVWUHWFKHVRIWKH$VLD²3DFLÀF &2672)'(9(/230(17$FRDOÀUHG
OLPLWHGDFFHVVWRHOHFWULFLW\³UHSUHVHQWV UHJLRQUHPDLQXQGHUSRZHUHGRU SRZHUSODQWLQ7LDQMLQLQWKH3HRSOHҋV
WKHWRSWKUHDWWRHQHUJ\VHFXULW\LQ$VLD
DQGWKH3DFLÀFDFFRUGLQJWRDQDO\VWV
$VWKHVKRUWIDOOJURZVEHWZHHQ
$VLD·VVHHPLQJO\LQVDWLDEOHHQHUJ\
QHHGVDQGLWVJHQHUDWLRQDELOLW\
DQDO\VWVVD\SULFHVPD\ULVHVRPXFK
WKDWWKH\WDPSGRZQJURZWKSURVSHFWV
´7KDW·VZKHUH\RXVHHWKHHIIHFWRQ
WKH>RYHUDOO@HFRQRP\µH[SODLQV
'DYLG3XPSKUH\GHSXW\GLUHFWRU
RIWKH(QHUJ\DQG1DWLRQDO6HFXULW\
3URJUDPDWWKH&HQWHUIRU6WUDWHJLFDQG
,QWHUQDWLRQDO6WXGLHVLQ:DVKLQJWRQ
'&
ZRUVHVWLOOZLWKQRHOHFWULFLW\DWDOO
0RVWRIWKHZRUOG·VDSSUR[LPDWHO\
ELOOLRQSHRSOHZKRGRQRWKDYHDFFHVV
WRHOHFWULFLW\OLYHLQGHYHORSLQJ$VLD
DFFRUGLQJWRWKH,QWHUQDWLRQDO(QHUJ\
$JHQF\,Q&DPERGLDDQG7LPRU/HVWH
IRUH[DPSOHRXWRISHRSOHGRQRW
KDYHHOHFWULFLW\DQGLQ$IJKDQLVWDQDQG
0\DQPDUWKHVLWXDWLRQLVHYHQZRUVH
ZLWKHOHFWULÀFDWLRQUDWHVRIRQO\
DQG
´6PDOOHUFRXQWULHVWKDWKDYHOLPLWHG
UHVRXUFHVWKH\DUHUHDOO\LQDGLIÀFXOW
FRQGLWLRQLQWRGD\·VZRUOGµVD\V.DQJ
5HSXEOLFRI&KLQD35&HPLWVVPRNH
DQGVWHDP$VGHYHORSLQJ$VLDVWUXJJOHV
WRSURYLGHPRUHHQHUJ\IRULWVSHRSOH
LQDZD\WKDWIRVWHUVGHYHORSPHQWWKH
UHJLRQIDFHVWKHPRXQWLQJFKDOOHQJHRI
FRQWUROOLQJFDUERQGLR[LGHHPLVVLRQV
FRDOZKLOHWKHH[SDQVLRQRIFLWLHVDQG
VXEXUEVZLOOPHDQPRUHRLOEXUQHGIRU
WUDQVSRUW
$VGHYHORSLQJ$VLDVWUXJJOHVWR
SURYLGHPRUHHQHUJ\IRULWVSHRSOHLQ
DZD\WKDWIRVWHUVGHYHORSPHQWWKH
UHJLRQIDFHVWKHPRXQWLQJFKDOOHQJH
(QHUJ\VHFXULW\³HQVXULQJWKDWDQ
DUHDKDVDGHTXDWHDIIRUGDEOHDQG
VXVWDLQDEOHVRXUFHVRIHQHUJ\³JRHV
EH\RQGVLPSOHVXSSO\DQGGHPDQG
IRUPXODV/LNHIRRGHQHUJ\VHFXULW\
FDOFXODWLRQVLQYROYHDFRPSOH[PL[
RIYDULDEOHVLQIUDVWUXFWXUHSROLWLFDO
VWDELOLW\SROLWLFDODQGHFRQRPLF
3,&785(&5(',7,0$*,1(&+,1$
FRRSHUDWLRQWHFKQRORJ\«WKHOLVWJRHV
RQ*RYHUQPHQWVKDYHWRÀJXUHRXW
QRWRQO\ZKHUHKRZDQGZKDWNLQGRI
SRZHUSODQWVDQGSLSHOLQHVWREXLOG
EXWDOVRKRZWRPDLQWDLQDQGSURWHFW
:XDVHQLRUIHOORZLQHFRQRPLFVDW
WKH+RQROXOXEDVHG(DVW:HVW&HQWHU
´3ULFHVKDYHJRQHXS)RUFRXQWULHV
OLNH6UL/DQND3DNLVWDQ1HSDOWKH
3KLOLSSLQHVWKH\KDYHWRSD\IRU
H[SHQVLYHHQHUJ\LPSRUWVDQGWKH\
KDYHQRPRQH\VROLYLQJFRQGLWLRQV
JHWZRUVHµ
,PSRUWVRIIRVVLOIXHOVDUHH[SHFWHG
WRPRUHWKDQGRXEOHIURPWR
DFFRUGLQJWRWKHUHSRUW
(QHUJ\2XWORRNIRU$VLDDQGWKH3DFLÀF
SXEOLVKHGE\WKH$VLDQ'HYHORSPHQW
RIFRQWUROOLQJFDUERQGLR[LGH&2
HPLVVLRQV8QIRUWXQDWHO\PRUHFDUV
IDFWRULHVKRXVHKROGVDQGSRZHUSODQWV
ZLOOOHDGWRKLJKHUFRQFHQWUDWLRQVRI
JUHHQKRXVHJDVHV
'(0$1')25(/(&75,&,7<
5DSLGJURZWK³HFRQRPLF
GHPRJUDSKLFXUEDQDQGLQGXVWULDO³
LVSXVKLQJWKHGHPDQGIRUHQHUJ\LQ
$VLDDQGWKH3DFLÀF&RDOFXUUHQWO\
WKHSULPDU\IXHOIRUSRZHUSODQWV
ZLOOPDNHXSWKHODUJHVWVHJPHQW
WKHPIURPWHUURULVPDFFLGHQWVDQG %DQN$'%3RZHUSODQWVDQG RIWKHHQHUJ\PL[E\DW
QDWXUDOGLVDVWHUV LQGXVWU\ZLOOGULYHXSGHPDQGIRU DFFRUGLQJWR(QHUJ\2XWORRN2LOZLOO

ZZZGHYHORSPHQWDVLD -XO\²6HSWHPEHU 'HYHORSPHQW$VLD

 ENERGY SECURITY: THE BIG READ

PDNHXSRIWKHWRWDOSULPDU\
HQHUJ\GHPDQGDQGQDWXUDOJDVZLOO
FRPSULVH1HZDQGUHQHZDEOH
HQHUJ\VRXUFHVZLOODFFRXQWIRU
ZLWKQXFOHDUPDNLQJXSDQG
K\GURSRZHU
:KLOHFRDOLVDEXQGDQWLQVRPHSDUWV
RI$VLDDQGWKH3DFLÀFH[SORUDWLRQ
DQGWHFKQRORJLFDOGHYHORSPHQWKDYH
VORZHGLQUHFHQW\HDUVDFFRUGLQJ
WR$QLO7HUZD\VHQLRUDGYLVRUDQG
SUDFWLFHOHDGHUIRUHQHUJ\LQ$'%·V
5HJLRQDODQG6XVWDLQDEOH'HYHORSPHQW
'HSDUWPHQW/LWWOHKDVEHHQLQYHVWHG
LQWKHVHDUFKIRUQHZUHVRXUFHVRU
ZD\VWRPDNHFRDOH[WUDFWLRQPRUH
HIÀFLHQW,QVRPHFDVHVFRXQWULHVDUH
UHOXFWDQWWRDOORZSULYDWHFRPSDQLHV
WRGRH[SORUDWLRQEHFDXVHRIQDWLRQDO
VHFXULW\FRQFHUQV,QRWKHUFDVHVKLJK
VXOIXUFRQWHQWUHQGHUVFRDOUHVHUYHV
XQVXLWDEOHIRUXVH
(YHQZLWKDQDGHTXDWHDQG
DIIRUGDEOHVXSSO\RIIXHOIUHTXHQW
SRZHURXWDJHVDUHDZD\RIOLIHLQ
PXFKRIGHYHORSLQJ$VLD'LVUXSWLRQV
%,*$33(7,7()25(1(5*<$%29(
'XVNGHVFHQGVRQ'KDUDYLRQHRI
$VLDҋVELJJHVWVOXPVLQ0XPEDL,QGLD
0RUHSHRSOHIDVWJURZLQJFLWLHVDQG
H[SORGLQJLQGXVWU\KDYHFUHDWHGDQ
HVFDODWLQJGHPDQGIRUHQHUJ\DFURVV
$VLDDQGWKH3DFLÀF
RQWKHHFRQRP\DVIDFWRULHVIDLOWRPHHW
TXRWDVEXVLQHVVHVFORVHUHIULJHUDWHG
JRRGVVSRLOHWF2XWDJHVFDQDOVR
FUHDWHFLYLOXQUHVWFULPHVSLNHVDQG
HYHQSROLWLFDOLQVWDELOLW\,QVKRUW
DQHUUDWLFHOHFWULFDOVHUYLFHFUHDWHV
FRQGLWLRQVWKDWVDSFXUUHQWLQYHVWRUV
DQGIULJKWHQIXWXUHLQYHVWPHQW
LQFOXGLQJLQYHVWPHQWLQSRZHU
LQIUDVWUXFWXUH
´,IIRUHLJQHUVDUHJRLQJWRFRPHLQ
DQGLQYHVWLQ\RXUFRXQWU\LQSRZHU
JHQHUDWLRQWKH\DUHORRNLQJDWWKH
VDIHW\RIWKHLQYHVWPHQWRI\HDUVRU
VRµVD\V7HUZD\3ROLWLFDOSUREOHPV
DQGHYHUFKDQJLQJSROLFLHVDUHUHG
ÁDJVDQGJRYHUQPHQWVDUHQRWDOZD\V
DEOHWRPDNHORQJWHUPFRPPLWPHQWV
/26,1*3$7,(1&(5,*+73URWHVWRUV
EUDQGLVKÁXRUHVFHQWDQGKXUULFDQH
ODPSVLQ.DWKPDQGXLQ7KH
VWDWHUXQ1HSDO(OHFWULFLW\$XWKRULW\
LPSRVHGGDLO\SRZHUFXWVLQWKHFRXQWU\
GXHWRORZZDWHUOHYHOVDQGDGDPDJHG
WUDQVPLVVLRQOLQH
WRPDNHQHZLQYHVWPHQWVLQWKH
UHJLRQµ
1HSDO·VH[SHULHQFHLOOXVWUDWHV
WKLVSRLQW:LWKLWVYDVWQHWZRUNRI
SRZHUIXOZDWHUZD\VWKHFRXQWU\
FRXOGPHHWLWVHQWLUHGHPDQGIRU
HOHFWULFLW\WKURXJKK\GURSRZHU
DQGSURYLGHDVXUSOXVIRUH[SRUWWR
,QGLDDFFRUGLQJWR(QHUJ\2XWORRN
,QWKHJRYHUQPHQWDSSURYHG
OHJLVODWLRQRIIHULQJJHQHURXVLQFHQWLYHV
IRUSULYDWHFRPSDQLHVWRLQYHVWLQ
K\GURSRZHU
%XWLQWHUQDOFRQÁLFWVDQG
LQFRQVLVWHQWSROLFLHVGLVFRXUDJHG
3,&785(&5(',7$)3
LQYHVWPHQWDV0LQLVWHURI(QHUJ\
3UDNDVK6KDUDQ0DKDWH[SODLQVLQWKH
UHSRUWRIWKH1HSDO(OHFWULFLW\
LQHOHFWULFLW\VXSSO\FDQZUHDNKDYRF ´7KDWGRHVQRWJLYHFRPIRUWWREDQNHUV $XWKRULW\1($´7KHUHZDVDQ

'HYHORSPHQW$VLD -XO\²6HSWHPEHU ZZZGHYHORSPHQWDVLD

 ,Q1HSDOGHVSLWHLWVYDVW
K\GURHOHFWULFSRWHQWLDOGDQJHURXVDQG
LQHIÀFLHQWWUDGLWLRQDOIXHOVDFFRXQWHG
IRURIWRWDOHQHUJ\GHPDQGLQ
DFFRUGLQJWR(QHUJ\2XWORRN
1HSDO·VK\GURZRHVKDYHEHHQ
UHSHDWHGLQ%KXWDQ0\DQPDUDQG
6UL/DQND³DOORIZKLFKKDYHRQO\
GHYHORSHGDVPDOOIUDFWLRQRIWKHLU
SRWHQWLDOEHFDXVHRIÀQDQFLDODQG
WHFKQRORJLFDOFRQVWUDLQWV,QDOOFDVHV
SODQVKDYHEHHQVW\PLHGE\WKHODFN
RILQIUDVWUXFWXUHWRPRYHSRZHUIURP
JHQHUDWLRQFHQWHUVWRFLWLHVDVZHOODV
ZRUULHVWKDWGDPVFDQUHGXFHZDWHU
DYDLODELOLW\GRZQULYHUDQGFDXVHRWKHU
HQYLURQPHQWDOSUREOHPV
'LIÀFXOWLHVQRWZLWKVWDQGLQJ
K\GURSRZHUJHQHUDWHGRI
HOHFWULFLW\LQ$VLDDQGWKH3DFLÀFLQ
ZLWKWKH3HRSOH·V5HSXEOLFRI
LQLWLDOVXUJHLQWKHGHYHORSPHQWRI
K\GURSRZHUE\WKHSULYDWHVHFWRUEXW
WKHPRPHQWXPZDVVKRUWOLYHG,Q
VXFFHVVLYH\HDUVGHVSLWHJRYHUQPHQW·V
SODQWREULQJLQPRUHSULYDWH
LQYHVWPHQWLQWKLVVHFWRUQRWPXFK
>KDV@KDSSHQHGµKHZULWHV´>$Q@
XQVWDEOHSROLWLFDOFOLPDWH>DQGD@SRRU
VHFXULW\VLWXDWLRQDUHEXWDIHZUHDVRQV
RIWHQFLWHGIRUWKHODFNRIDGHTXDWH
SULYDWHSDUWLFLSDWLRQLQWKLVVHFWRUµ
:KLOHSRZHUJHQHUDWLRQSURMHFWV
ODQJXLVKHGGHPDQGFRQWLQXHGWRULVH
SURPSWLQJWKHJRYHUQPHQWWRGHFODUH
DQDWLRQDOHOHFWULFLW\FULVLVLQODWH
/RZZDWHUOHYHOVDQGDGDPDJHG
WUDQVPLVVLRQOLQHFDXVHGSRZHU
RXWDJHVODVWLQJXSWRKRXUVDGD\
FUHDWLQJHYHQPRUHSXEOLFRXWFU\1($
3,&785(&5(',7$)3
0DQDJLQJ'LUHFWRU-LYHQGUD-KDVWDWHV
LQWKHDQQXDOUHSRUW
´&RQWLQJHQFLHVFDXVHGE\QDWXUHDUH
EH\RQGFRQWURORI1($µ-KDZULWHV
ZZZGHYHORSPHQWDVLD
´%XWZHKDGWRDEVRUEPRXQWLQJ
GLVVDWLVIDFWLRQRIFRQVXPHUVH[SUHVVHG
DVORFNXSVDJLWDWLRQVSK\VLFDODVVDXOW
RQRXUHPSOR\HHVDQGGDPDJHWR1($
SURSHUW\DWPDQ\SODFHVµ
%\GHVSLWH\HDUVRIDPELWLRXV
SODQVIRUK\GURSRZHUSODQWVOHVVWKDQ
KDOIRIWKHSRSXODWLRQLQ1HSDOKDGDQ\
DFFHVVWRHOHFWULFLW\
,QDUHDVWKDWODFNVHUYLFHUHVLGHQWV
XVHWUDGLWLRQDOIXHOVVXFKDVÀUHZRRG
FURSUHVLGXHVDQGDQLPDOPDQXUHIRU
KHDWLQJDQGFRRNLQJ7KHVHPDWHULDOV
DUHLQHIÀFLHQWIXHOVRXUFHVDQG
SUREOHPDWLFRQPDQ\OHYHOV:KHQ
EXUQHGWKH\UHOHDVHWR[LQVZKLFKDUH
EODPHGIRUPRUHWKDQPLOOLRQGHDWKV
D\HDUZRUOGZLGHPRVWO\DPRQJSRRU
ZRPHQDQGFKLOGUHQDFFRUGLQJWRD
8QLWHG1DWLRQVUHSRUW&KRSSLQJ
GRZQWUHHVIRUIXHOLVDOVROHDGLQJWR
´XQFRQWUROOHGµGHIRUHVWDWLRQ7HUZD\
VD\V´7KDWKDVWREHVWRSSHGµ
&KLQD35&DQG,QGLDDFFRXQWLQJIRU
RIWKHWRWDODFFRUGLQJWR$'%·V
UHSRUWRQHQHUJ\VHFXULW\LQ$VLD
%<352'8&762)35263(5,7<
&$5%21(0,66,216
3RZHUSODQWVIDFWRULHVDQGPRWRUL]HG
YHKLFOHVSXPSRXW&2FRQWULEXWLQJ
WRJOREDOFOLPDWHFKDQJH:KLOH
WKHGHYHORSHGZRUOGFDQIRFXVRQ
UHGXFLQJFDUERQHPLVVLRQVGHYHORSLQJ
QDWLRQVKDYHWREDODQFHWKHQHHG
IRUJURZWKZLWKWKHGHYHORSPHQWRI
HQYLURQPHQWDOO\VRXQGHQHUJ\VRXUFHV
´&HUWDLQO\LQGHYHORSLQJFRXQWULHV
FKHDSHQHUJ\LVPRUHLPSRUWDQW
WKDQFOHDQHQHUJ\LQDORWRIFDVHVµ
VD\V0HGORFNRI5LFH8QLYHUVLW\$V
HFRQRPLHVJURZDQGOLYLQJFRQGLWLRQV
LPSURYHKHQRWHVHQYLURQPHQWDO
LVVXHVEHFRPHPRUHLPSRUWDQW8QWLO
WKHQ´SHRSOHDUHQRWDVFRQFHUQHG
DERXW&2RU62>VXOIXUGLR[LGH@RU
12[>QLWURJHQR[LGH@7KH\·UHPRUH
FRQFHUQHGDERXWKRXVLQJFORWKLQJDQG
IRRGµ
8QIRUWXQDWHO\WKHPRVWFRQYHQLHQW
DQGPRVWDIIRUGDEOHVRXUFHVRI
HQHUJ\³FRDODQGRLO³DUHDOVRPDMRU
VRXUFHVRIFDUERQHPLVVLRQV$VLD·V
FRQWULEXWLRQWRZRUOGZLGH&2
-XO\²6HSWHPEHU 'HYHORSPHQW$VLD
 ENERGY SECURITY: THE BIG READ

HPLVVLRQVLVH[SHFWHGWRFOLPEWR
LQIURPLQDFFRUGLQJWR
(ZPHxZ,ULYN`4P_ :RUOGZLGHZLQGSRZHULVD
JURZLQJLQGXVWU\DWWUDFWLQJLQFUHDVHG

 


WKH$'%UHSRUW&OHDQ(QHUJ\LQ)RFXV DWWHQWLRQLQ$VLD+RZHYHUSURMHFWVDUH
  
7KH&RSHQKDJHQ$FFRUGQRWHVWKDW KDUGHUWRIXQGEHFDXVHZLQGSRZHU
 
 

´VRFLDODQGHFRQRPLFGHYHORSPHQW UHTXLUHVVXEVWDQWLDOFDSLWDOLQYHVWPHQW
7LYJLU[HNLVMWYPTHY`LULYN`KLTHUK
DQGSRYHUW\HUDGLFDWLRQDUHWKHÀUVW M\SMPSSLKPUHUKWYVQLJ[LKMVY HVSHFLDOO\IRUWKHWXUELQHVZKLFKFDQ
DQGRYHUULGLQJSULRULWLHVRIGHYHORSLQJ IHZLKVUM\LS[`WL DFFRXQWIRUXSWRRILQVWDOODWLRQ
FRXQWULHVµ+RZHYHULWDOVRVWDWHV FRVWV2IIVKRUHZLQGSODQWVDUHHYHQ
WKDW´DORZHPLVVLRQGHYHORSPHQW 'HYHORSLQJ0HPEHU&RXQWULHV PRUHH[SHQVLYHDOWKRXJKEHWWHUZLQG

VWUDWHJ\LVLQGLVSHQVDEOHWRVXVWDLQDEOH *VHS 6PS 5H[ /`KYV FRQGLWLRQVDOVRUHVXOWLQKLJKHURXWSXW
NHZ 6[OLY
GHYHORSPHQWµ     5\JSLHY IRUWKHVHLQVWDOODWLRQV7KHWHFKQRORJ\
5HVLGHQWVLQWKH$VLD²3DFLÀF  LVVWLOOUHODWLYHO\QHZZLWKRQO\D
5H[ /`KYV
UHJLRQKDYHDORWWRORVHLIVWHSVDUH *VHS 6PS NHZ 6[OLY KDQGIXORIFRXQWULHVKDYLQJSODQWVVR
    5\JSLHY
QRWWDNHQWRFRQWUROHPLVVLRQV:LWK FRVWVZLOOOLNHO\GURSLIDQGZKHQLW
GHQVHO\SRSXODWHGFRDVWDODUHDVKLJK &HQWUDODQG:HVW$VLD
EHFRPHVPRUHSRSXODU
SRYHUW\OHYHOVDQGDKHDY\UHOLDQFH 
RQDJULFXOWXUHWKHUHJLRQLVHVSHFLDOO\ *VHS 6PS 5H[\YHSNHZ 6[OLY /`KYV
    5\JSLHY
YXOQHUDEOHWRGURXJKWVÁRRGVDQG
LQFUHDVHGF\FORQHDFWLYLW\7KHUHDUH  ´5HQHZDEOHHQHUJ\KDV
*VHS 6PS 5H[\YHSNHZ 6[OLY /`KYV
VLJQVWKDWFOLPDWHFKDQJHLVDOUHDG\    5\JSLHY DJUHDWIXWXUH7KHPRVW
DIIHFWLQJ6RXWKHDVW$VLDZLWKKLJKHU GLIILFXOWSDUWLV\RX
WHPSHUDWXUHVORZHUUDLQIDOOULVLQJVHD (DVW$VLD
OHYHOVDQGVWURQJHUDQGPRUHIUHTXHQW  KDYHKLJKRLOSULFHV
6PS 5H[
NHZ 6[OLY /`KYV
VWRUPVDFFRUGLQJWRD$'%UHSRUW *VHS
    5\JSLHY EXWQRWKLJKHQRXJK
(FRQRPLFVRI&OLPDWH&KDQJHLQ6RXWKHDVW  WRVSHQGRQUHQHZDEOH
$VLD3URSHUW\GHVWUXFWLRQGLVHDVH 5H[
*VHS 6PS NHZ 6[OLY /`KYV HQHUJ\7KHWDUJHW
DQGFURSORVVFDQKDYHGHYDVWDWLQJ    5\JSLHY

HIIHFWVRQFRPPXQLWLHVDQGQDWLRQDO VHHPVWREHSURPLVLQJ
HFRQRPLHV 7KH3DFLILF
 EXWWKHSURFHVVFDQEH
5H[
&/($16(&85((;3(16,9(
6PS

NHZ 6[OLY /`KYV
 GLIILFXOWµ
62/87,216 
:KLOHFRDODQGRLOVWLOOSRZHUWKH 6PS 5H[\YHSNHZ 6[OLY /`KYV —Kang Wu, a senior fellow in
  economics at East-West Center in
UHJLRQLQODUJHPHDVXUHDGYRFDWHV
Honolulu
RIUHQHZDEOHHQHUJ\DUHQRWPHUHO\ 6RXWK$VLD
WLOWLQJDWZLQGPLOOV6RPHFRXQWULHVDUH 
5H[
LQFUHDVLQJO\WDSSLQJ´JUHHQµVRXUFHV *VHS 6PS NHZ 6[OLY /`KYV 7LGDOSRZHUZKLFKFRQYHUWVWKH
    5\JSLHY
LQDQHIIRUWWRLQFUHDVHWKHLUHQHUJ\ HQHUJ\RIWKHWLGDOÁRZVLQWRHOHFWULFLW\

VHFXULW\E\UHGXFLQJWKHLUUHOLDQFHRQ 5H[ LVDQRWKHUHQHUJ\VRXUFHWKDWVRPH
*VHS 6PS NHZ 6[OLY /`KYV
IRVVLOIXHOVZKLOHDOVRWDNLQJWKHFKDQFH     5\JSLHY DQDO\VWVH[SHFWWRVHHGHYHORSHGPRUH
WRGLYHUVLI\ LQWKHQH[WWR\HDUVHVSHFLDOO\
´<RX·UHVHHLQJDUHDOO\VLJQLÀFDQW $VLDDQGWKH3DFLILF DPRQJLVODQGQDWLRQV7KH2FHDQ
LQYHVWPHQWWKDW&KLQDLVPDNLQJ  (QHUJ\&RXQFLOQRWHVWKDWWLGHVDUH
5H[ /`KYV
*VHS 6PS NHZ 6[OLY
7KH\KDGWKHVWURQJHVWJURZWKRI   5\JSLHY SUHGLFWDEOHDQGGRQ·WÁXFWXDWHOLNH
 
DQ\FRXQWU\LQWKHZRUOGLQWKHZLQG  ULYHUVRUZLQGVPDNLQJWKHLUHQHUJ\
LQGXVWU\µVD\V'DYLG3XPSKUH\D *VHS 6PS 5H[ /`KYV RXWSXWPRUHUHOLDEOH+RZHYHUDVZLWK
NHZ 6[OLY
VHQLRUIHOORZRIWKH&HQWHUIRU6WUDWHJLF     5\JSLHY PDQ\RWKHUUHQHZDEOHHQHUJ\VRXUFHV
DQG,QWHUQDWLRQDO6WXGLHVDQGGHSXW\  

  

  VWDUWXSFRVWVUHPDLQSURKLELWLYHO\
GLUHFWRURILWV(QHUJ\DQG1DWLRQDO  ! "
# $!  

 % KLJKHVSHFLDOO\IRUFDVKVWUDSSHG
6HFXULW\3URJUDP´,W·VWRGLYHUVLI\ %%
%
&' JRYHUQPHQWV

,ULYN`6\[SVVRMVY(ZPHHUK[OL7HJPMPJ%$())*
WKHLUHQHUJ\PL[VRWKH\DUHQ·W
GHSHQGHQWRQMXVWRQHIXHOµ

'HYHORSPHQW$VLD -XO\²6HSWHPEHU
+ , - ./
6RODUSRZHULVDQRWKHURSWLRQWKDW
LVH[SHQVLYHDQGGLIÀFXOWWRPDLQWDLQ
0012,,34 
ZZZGHYHORSPHQWDVLD
 EXWPD\SURYHDWWUDFWLYHIRUUHPRWH
FRPPXQLWLHVDFURVV$VLDDQGWKH
3DFLÀFDVWKHFRVWRIWKHWHFKQRORJ\
GHFUHDVHV6RODUSRZHUFDQSURYLGH
KHDWEHFRQYHUWHGWRHOHFWULFLW\
WKURXJKSKRWRYROWDLFFHOOVDQGEH
XVHGWRSURGXFHYDULRXVIXHOV6RODU
KRPHV\VWHPVZKLFKVWRUHSRZHU
JHQHUDWHGGXULQJWKHGD\LQEDWWHULHV
IRUXVHODWHUPD\SURYHLGHDOLQ
FRPPXQLWLHVWKDWDUHQRWFRQQHFWHGWR
DSRZHUJULG
3,&785(&5(',7,0$*,1(&+,1$
%,2)8(/672*(27+(50$/
%H\RQGWKHVXQZLQGDQGZDYHV
VRPH$VLDQFRXQWULHVDUHH[SORULQJ
DOWHUQDWLYHHQHUJ\VRXUFHVUDQJLQJ
IURPFRQYHUWLQJRUJDQLFPDWWHULQWR
ELRIXHOVWRWDSSLQJWKH(DUWK·VFUXVWWR
H[SORLWJHRWKHUPDOHQHUJ\
ZZZGHYHORSPHQWDVLD
&20021),;785(66RODUHQHUJ\
ZDWHUKHDWHUVDUHLQVWDOOHGRQWKHURRI
RIDSDUWPHQWVLQ=KHMLDQJSURYLQFHLQ
WKH35&
%LRPDVV³RUJDQLFPDWHULDOSURGXFHG
RUJDWKHUHGIRUHQHUJ\XVH³FDQ
EHFRQYHUWHGWRELRIXHOVELRJDVHV
DQGELRFKHPLFDOVZKLFKDUHWKHQ
XVHGWRGULYHSRZHUSODQWVRUWRIXHO
YHKLFOHV6RPHWLPHVFURSVDUHJURZQ
VSHFLÀFDOO\IRUFRQYHUVLRQWRHQHUJ\
*UDLQVDQGVXJDUFDQHFDQEHXVHGWR
PDNHHWKDQROVR\EHDQRLODQGSDOPRLO
FDQEHFRQYHUWHGLQWRELRGLHVHO
)RRGVHFXULW\FRQFHUQVFROOLGH
ZLWKWKHFRQFHSWRIXVLQJDJULFXOWXUDO
ODQGWRSURGXFHIXHO$'%·V7HUZD\
H[SODLQVDQGLQVWLWXWLRQDOFRRUGLQDWLRQ
WRUHVROYHWKLVFRQÁLFWLVRIWHQODFNLQJ
RQHPLQLVWU\KDQGOHVDJULFXOWXUH
DQRWKHUKDQGOHVHQHUJ\DQGRIÀFLDOV
DQGDJHQFLHVRIWHQKDYHWURXEOH
ZRUNLQJWRJHWKHU
)RRG²IXHOFRQÁLFWVFDQEHDYRLGHG
E\XVLQJDJULFXOWXUDODQGIRUHVWU\
ZDVWHDVDVRXUFHRIHQHUJ\5LFH
KXVNVDQGRWKHUZDVWHVWKDWZRXOG
RUGLQDULO\EHEXUQHGLQWKHÀHOGFDQ
EHXVHGDVIXHO3LJJHULHVKDWFKHULHV
DQGGDLULHVSURYLGHDQRWKHUSRWHQWLDO
IXHOVRXUFH´<RXJHWDORWRIFRZGXQJ
DQGGURSSLQJVWKDWFDQEHFRQYHUWHGWR
ELRJDVµ7HUZD\VD\V
6RPHRIWKHVHPHWKRGVDUHDOUHDG\
EHLQJXVHGWRSURGXFHHQHUJ\LQ
OLPLWHGFDSDFLW\LQWKHUHJLRQ,Q
SDUWVRI,QGRQHVLDELRPDVVKDVEHHQ
XVHGWRJHQHUDWHHOHFWULFLW\DQGLQ
7KDLODQGJDVRKROKDVEHHQPDGHIURP
-XO\²6HSWHPEHU 'HYHORSPHQW$VLD
 ENERGY SECURITY: THE BIG READ
DJULFXOWXUDOFURSV$OVRLQ7KDLODQG
ZDVWH²WR²HQHUJ\LVEHLQJXVHGRQD
FRPPHUFLDOVFDOHWRSURYLGHHQHUJ\
WRSLJIDUPVDFFRUGLQJWR$'%·V
(FRQRPLFVRI&OLPDWH&KDQJHLQ6RXWKHDVW
$VLD$OWKRXJKWKHWHFKQRORJ\DOUHDG\
H[LVWVWKHFRVWRISURGXFLQJSRZHU
IURPDJULFXOWXUDOVRXUFHVLVVWLOO
KLJK,QFHQWLYHVZRXOGEHQHHGHGWR
HQFRXUDJHFRPPHUFLDOSURMHFWVDVLV
DOUHDG\WKHFDVHLQVRPHFRXQWULHVLQ
WKHUHJLRQDQGDVWHDG\DQGDEXQGDQW
VXSSO\RIHLWKHUFURSVRUZDVWHZRXOG
KDYHWREHHQVXUHG
2WKHUHQHUJ\VRXUFHVDOUHDG\LQXVH
LQ$VLDDQGWKH3DFLÀFDUHQXFOHDUDQG
JHRWKHUPDO1XFOHDUHQHUJ\SURYLGHV
DERXWRIWKHUHJLRQ·VHOHFWULFLW\DQG
LWLVH[SHFWHGWREHWKHIDVWHVWJURZLQJ
HQHUJ\VRXUFHIURPWR
PRVWO\EHFDXVHRILQFUHDVHGFDSDFLW\LQ
WKH35&
7KHXVHRIQXFOHDUHQHUJ\LVQRW
ZLWKRXWFRQFHUQVDQGFKLHIDPRQJ
WKHPLVVDIHW\,QWKH3KLOLSSLQHV
FRQVWUXFWLRQRIWKH%DWDDQQXFOHDU
SRZHUSODQWEHJDQLQDQGZDV
FRPSOHWHGLQ%XWDIWHUDFFLGHQWV
DW7KUHH0LOH,VODQGLQWKH8QLWHG
6WDWHVDQG&KHUQRE\OLQ8NUDLQHWKH
SODQWZDVQHYHUPDGHRSHUDWLRQDO,Q
WKH,QWHUQDWLRQDO$WRPLF(QHUJ\
$VVRFLDWLRQFRQGXFWHGDVWXG\DWWKH
UHTXHVWRIWKH3KLOLSSLQHJRYHUQPHQW
WRORRNDWUHFRPPLVVLRQLQJWKHSODQW
6LQFHWKHQWKH.RUHD(OHFWULF3RZHU
&RUSRUDWLRQFRQGXFWHGDQRWKHUVWXG\
DQGHVWLPDWHGLWFRXOGFRVWXSWR
ELOOLRQWRUHKDELOLWDWHWKHIDFLOLW\
$OWKRXJK/X]RQLVH[SHFWHGWRIDFH
SRZHUVKRUWDJHVLQWKHQHDUIXWXUHDQG
QXFOHDUHQHUJ\LVUHODWLYHO\LQH[SHQVLYH
WKHUHLVVRPHFRPPXQLW\RSSRVLWLRQWR
WKHSODQWEDVHGRQVDIHW\JURXQGV
7KH3KLOLSSLQHVLVRQHRIWKHZRUOG·V
ODUJHVWFRQVXPHUVRIJHRWKHUPDOHQHUJ\
ZKLFKXVHVKHDWIURPWKHHDUWKDVDQ
HQHUJ\VRXUFH/DUJHVFDOHSURGXFWLRQ
,QGRQHVLD-DSDQ1HZ=HDODQG3DSXD
1HZ*XLQHDWKH3KLOLSSLQHVDQGVRPH
3DFLÀF,VODQGQDWLRQV([SHQVHVIRU
JHRWKHUPDOHQHUJ\LQFOXGHGULOOLQJ³
ZKLFKPDNHVXSDERXWDWKLUGWRDKDOI
RISURMHFWFRVWV³DQGH[SORUDWLRQDQG
FRQVWUXFWLRQ*HRWKHUPDOKHDWSURYLGHV
DVWHDG\DQGUHOLDEOHHQHUJ\VWUHDP
EXWLWLVGHSHQGHQWRQWKHTXDOLW\RIWKH
UHVRXUFHV
:XRIWKH(DVW:HVW&HQWHUVD\V
UHQHZDEOHHQHUJ\ZLOOOLNHO\EHPRUH
DWWUDFWLYHWRLQYHVWRUVLQWKHIXWXUH
ZKHQGHPDQGIRUOLPLWHGIRVVLOIXHOV
GULYHVSULFHVXS
´)RUWKHORQJWHUPUHQHZDEOHHQHUJ\
KDVDJUHDWIXWXUHµKHVD\V´7KH
PRVWGLIÀFXOWSDUWLV\RXKDYHKLJKRLO
SULFHVEXWQRWKLJKHQRXJKWRVSHQG
RQUHQHZDEOHHQHUJ\,W·VDWDGLIÀFXOW
VWDJHQRZ,WKLQNWKDW\RXKDYHWR
WDNHVPDOOVWHSV7KHWDUJHWVHHPVWR
EHSURPLVLQJEXWWKHSURFHVVFDQEH
GLIÀFXOWµ
&211(&7,1**5,'6
,QWKHRU\WKHUHJLRQDOHQHUJ\VHFXULW\
RXWORRNVKRXOGEHPRUHSURPLVLQJ
WKDQLWLVIRULQGLYLGXDOFRXQWULHV
%\EXLOGLQJSLSHOLQHVDQGRWKHU
FRQQHFWLRQVDQGWUDGLQJUHVRXUFHV
QDWLRQVZLWKLQWKHUHJLRQFRXOG
KDYHDEHWWHUFKDQFHRIGLYHUVLI\LQJ
IXHOVZKLFKZRXOGPDNHWKHPOHVV
YXOQHUDEOHWRVXSSO\GLVUXSWLRQV
´3ROLWLFDOEDUULHUVQRWZLWKVWDQGLQJ
LI\RXLQFUHDVHLQWHUFRQQHFWLYLW\LQD
SRZHUJULG\RXLQFUHDVHWKHSRWHQWLDO
IRUFRQVXPHUVWRUHFHLYHDVXSSO\µ
VD\V0HGORFNRI5LFH8QLYHUVLW\´,I
\RXFDQFRQQHFWWRWKHJULGDQGWLH
PXOWLSOHVRXUFHVRIJHQHUDWLRQWRJHWKHU
«WKHQ\RXKDYHRSWLRQVµ
+RZHYHUKHDGGVWKDWVXFK
FRRSHUDWLRQLVXQOLNHO\WRKDSSHQRQD
ODUJHVFDOHLQWKHQHDUIXWXUH
´,QWHUFRQQHFWLYLW\LVRQHRIWKHEHVW
ZD\VWRPDNHVXUHWKHJULGLVUHOLDEOH
ERUGHUV³EHWKH\LQWHUQDWLRQDORU
ORFDOPXQLFLSDOLWLHV³FRQVWUXFWLRQ
IDFHVSROLWLFDOFRQVWUDLQWVµ0HGORFN
H[SODLQV´7KLVWHQGVWRUDLVHFRVWV
DQGFDQUHQGHUVRPHJHQHUDWLRQ
RSWLRQV³WKDWPD\EHORFDWHGIDUDZD\
IURPPDMRUSRSXODWLRQFHQWHUV³OHVV
HIIHFWLYH7KHSRLQWLVFRVWPDWWHUVµ
´7KHFXUUHQWSROLWLFDOFOLPDWHV
DUHQRWUHDOO\FRQGXFLYHWRWKHVH
EDUULHUVIDOOLQJ,IZHJHWRU
\HDUVGRZQWKHURDGDQGZHVHHWKHVH
PDVVLYHVKRUWDJHVHPHUJH\RX·OOVHH
QHJRWLDWLQJOLQHVFKDQJHµKHVD\V
´5LJKWQRZZH·UHQRWWKHUHµ
3XPSKUH\RIWKH&HQWHUIRU6WUDWHJLF
DQG,QWHUQDWLRQDO6WXGLHVQRWHGWKDW
LQPDQ\FDVHVWKHFUHDWLRQRIUHJLRQDO
HQHUJ\FRQQHFWLRQVZRXOGUHTXLUH
FRVWO\LQIUDVWUXFWXUHLQYHVWPHQWVLQ
SROLWLFDOO\VHQVLWLYHDUHDV´<RXKDYHWR
EXLOGWKHOHYHORIWUXVWZKHQ\RXEXLOG
DSLSHOLQHWKDWFRQQHFWVWZRSDUWLHVµ
KHVD\V
$QDO\VWVSRLQWWRWKH7XUNPHQLVWDQ²
35&QDWXUDOJDVSLSHOLQHDVD
QRWHZRUWK\DFFRPSOLVKPHQW7KH
SLSHOLQHH[SDQGV&HQWUDO$VLD·VUHDFK
WRHQHUJ\FXVWRPHUVLQWKHHDVWDQG
SURYLGHVWKH35&ZLWKDJUHDWHUVXSSO\
RIQDWXUDOJDV
´7KDWZLOOEHDUHDOLW\WKDWEHQHÀWV
ERWK&KLQDDQG7XUNPHQLVWDQLQWKH
ORQJUXQµ3XPSKUH\VD\V
=KD'DRMLRQJSURIHVVRURI
LQWHUQDWLRQDOVWXGLHVDW3HNLQJ
8QLYHUVLW\LQ%HLMLQJVD\VWKHSLSHOLQH
KDVDQDGGHGEHQHÀWIRUQHLJKERULQJ
FRXQWULHV7KHOLQHZLOOVHUYHLQODQG
ZHVWHUQDQGFHQWUDOUHJLRQVRIWKH
35&DQG´WKHVXSSO\RIQDWXUDOJDV
ZLOOUHSODFHFRDOFRQVXPSWLRQµ=KD
VD\V´7KLVKDVDQLPSDFWRQ-DSDQDQG
.RUHDEHFDXVHDLUSROOXWDQWVPLJUDWH
WRWKRVHUHJLRQVµ
7KHUHDUHRWKHUUHJLRQDOFRQQHFWLRQV
DQGLQWHUFRXQWU\SURMHFWVLQSODFH
7KH$VVRFLDWLRQRI6RXWKHDVW$VLDQ
RIJHRWKHUPDOHQHUJ\LVUHVWULFWHGWR DQGWKDWFRQVXPHUVFDQDFFHVVPDQ\ 1DWLRQV$6($1DJUHHGLQWR
DUHDVZLWKWHFWRQLFDFWLYLW\VXFKDV GLIIHUHQWW\SHVRIJHQHUDWLRQ7KH GHYHORSWKH$6($13RZHU*ULGWR
YROFDQRHVJH\VHUVDQGKRWVSULQJV,Q WURXEOHLVWKDWWUDQVPLVVLRQOLQHVDUH HQFRXUDJHFRQQHFWLRQVEHWZHHQ
WKH$VLD²3DFLÀFUHJLRQWKLVLQFOXGHV H[SHQVLYHDQGZKHQWKH\WUDYHUVH SURMHFWVE\7KHÀUVWSKDVHFDOOV

'HYHORSPHQW$VLD -XO\²6HSWHPEHU ZZZGHYHORSPHQWDVLD


32:(57,(67XUNPHQLVWDQ3UHVLGHQW
FRQQHFWWKH/DR3HRSOH·V'HPRFUDWLF
GHYHORSK\GURSRZHUDQG%KXWDQ
H[SRUWVPXFKRIWKHSRZHULWJHQHUDWHV
WR,QGLD,QGLDEHQHÀWVEHFDXVHVRPH
RILWVSRZHUQHHGVDUHPHWE\%KXWDQ
DQGUHYHQXHIURPSRZHUVDOHVKDYH
KHOSHG%KXWDQGHYHORS,QWKH
FRXQWULHVDJUHHGWRH[SDQGWKHLU
FRRSHUDWLRQ
$'%HVWLPDWHVWKDWEHWZHHQ
WULOOLRQDQGWULOOLRQLQLQYHVWPHQWV
ZLOOQHHGWREHPDGHE\WR
VXSSRUWWKHUHJLRQ·VJURZLQJHQHUJ\
UHTXLUHPHQWV,QDGGLWLRQWRSODQW
FRQVWUXFWLRQFRVWVDQGIXHOFRVWVFURVV
ERUGHUFRQQHFWLRQVQHHGWREHEXLOW
VHFXUHGDQGPDLQWDLQHG
6(,=,1*23325781,7,(6
$VWKHQHHGIRUHQHUJ\LQFUHDVHVDFURVV
$VLDQDWLRQVZLOOH[SORUHGLIIHUHQW
VROXWLRQVWRFORVHWKHJDSEHWZHHQ
VXSSO\DQGGHPDQG
´/RRNLQJDWWKHHQHUJ\SLFWXUHIRU
WKHUHJLRQLW·VDOLWWOHKDUGWRPDNH
$VLDVSHFLÀFGHÀQLWLRQVDQGVWDWHPHQWV
EHFDXVHWKHUH·VWUHPHQGRXVYDULDELOLW\
EHWZHHQWKHFRXQWULHVµ3XPSKUH\
VD\V/DUJHUDQGZHDOWKLHUFRXQWULHV
ZLOOOLNHO\WU\WRRIIVHWWKHH[SHQVHRI
LQFUHDVHGLPSRUWVE\LPSURYLQJWKHLU
HQHUJ\HIÀFLHQF\%XWFRXQWULHVWKDWDUH
VWLOOVWUXJJOLQJWRSURYLGHHQHUJ\DFFHVV
WRWKHLUUHVLGHQWVZRQ·WKDYHDVPDQ\
RSWLRQV
5LFH8QLYHUVLW\·V0HGORFNEHOLHYHV
WKDWGHVSLWHWKHJORRP\RXWORRN
DPRQJVRPHDQDO\VWVLWLVXQOLNHO\
WKHJDSEHWZHHQHQHUJ\VXSSO\DQG
GHPDQGZLOOWKUHDWHQ$VLD·VJURZWK
EHFDXVHWKHPDUNHWVZLOOQDWXUDOO\
*XUEDQJXO\%HUG\PXNKDPHGRY 5HSXEOLF/DR3'5DQG7KDLODQGWKH DGMXVW
5,*+7DWWHQGVWKHRSHQLQJFHUHPRQ\
LQ'HFHPEHUDWDUHÀQHU\LQ
6DPDQGHSHLQWKH.DUDNXP'HVHUWZKHUH
35&3UHVLGHQW+X-LQWDRLQDXJXUDWHG
DSLSHOLQHWRWUDQVSRUWQDWXUDOJDVIURP
7XUNPHQLVWDQWRWKH35&
3,&785(&5(',7$)3
IRUFRQQHFWLRQVEHWZHHQFRXQWULHV
WKHQH[SDQGLQJWRDVXEUHJLRQDO
EDVLVDQGÀQDOO\OLQNLQJWKHHQWLUH
6RXWKHDVW$VLDSRZHUJULG7KHSURMHFWV
ZZZGHYHORSPHQWDVLD
/DR3'5DQG9LHW1DP,QGRQHVLD
DQG0DOD\VLD0DOD\VLDDQGWKH
3KLOLSSLQHV%UXQHL'DUXVVDODPDQG
0DOD\VLDDQG0\DQPDUDQG7KDLODQG
DFFRUGLQJWRDQ$6($1UHSRUWRQ
HQHUJ\FRRSHUDWLRQ$UHJLRQDOJDV
JULGNQRZQDVWKH7UDQV$6($1*DV
3LSHOLQHLVDOVRSODQQHG
(QHUJ\DJUHHPHQWVEHWZHHQ%KXWDQ
DQG,QGLDKDYHORQJEHHQPXWXDOO\
EHQHÀFLDO,QGLDKDVKHOSHG%KXWDQ
´,PEDODQFHVGRQ·WMXVWKDSSHQ
XSRQXVµKHVD\V´:HVHHWKHP
FRPLQJ,IGHPDQGJURZVSULFHVULVH
SHRSOHZLOOLQYHVWLQQHZFDSDELOLWLHV
,W·VLPSRUWDQWWREHDEOHWRVHHWKRVH
VLJQDOVVR\RXFDQVHHRSSRUWXQLWLHVWR
ORRNRU\HDUVRXWDQGVD\GHPDQG
H[FHHGVVXSSO\µ
+HDGGVRSWLPLVWLFDOO\´,ILWFUHDWHV
RSSRUWXQLWLHVWKDWFDQEHVHL]HGXSRQ
WKHQWKH\ZLOOEHVHL]HGXSRQµQ
-XO\²6HSWHPEHU 'HYHORSPHQW$VLD
 ENERGY SECURITY: THE BIG PICTURE

,ULYN`:LJ\YP[`
  
(]HPSHISL (MMVYKHISL :\P[HISL

 :HML
-HJ[VYZ

 

  
  

 
      

0TWVY[PUN,ULYN`
,
  
      
   %    
.


:   %
  %
 1 
8&   % 

IMPORT DEPENDENCY
 %&
& Strategies for reducing
2006 figures dependency
Better utilization of
$VLDDQG current resources
WKH3DFLILF <?=
Improving and extending
&HQWUDODQG infrastructure to foster
6);= intraregional trade
:HVW$VLD
(DVW$VLD Cooperative strategies Night lights
(<=
within the region across Asia
Developing new NASA composite image
6RXWK$VLD (A=
energy sources

3DFLILF (?(=

,SLJ[YPMPJH[PVU9H[LHUK.+7 (JJLZZ[V,SLJ[YPJP[`
    :    ())>
4,:  <YIHU 9\YHS
%    .

<))  <)) **  **  **  **  
2005 figures  
 
<))= >*
79* ;OHPSHUK 4HSKP]LZ  >?
=PL[5HT 7OPSPWWPULZ C
Electrification rate

>)
:YP3HURH
4VUNVSPH

?)
0UKPH 0UKVULZPH
7HRPZ[HU
%UXQHL'DUXVVDODP

3HV7+9
@) 5LWHS
)HUNSHKLZO )O\[HU

*HTIVKPH
7DLSHL&KLQD

()
3KLOLSSLQHV
6LQJDSRUH

4`HUTHY
6UL/DQND
9LHW1DP
0DOD\VLD

7KDLODQG

(MNOHUPZ[HU
)
) ;)) <%))) <%;)) (%))) (%;)) A%)))
35&

GDP per capita

+5B%  ()))/

E 

   

  

 4,:"4,:
F:,0"F:G,0 :01":G0 1 
$501''
  .'
D'DD
#Improving Energy Security and Reducing Carbon Intensity in Asia and the Pacific +, - ./# Ene

'HYHORSPHQW$VLD -XO\²6HSWHPEHU ZZZGHYHORSPHQWDVLD

 *OHSSLUNLZHUK7V[LU[PHS
,   %   %
  .  

Central and West Asia

$%%
   

&

 
 People’s Republic of China
  



%  

  
1  % 
     

Nepal
5

 


  

  
.  
 &

India
, 
  %
   Viet Nam


 & 
South and Southeast Asia % 
5  
   
 6    

 Philippines


 
 96
   
 

     
 




Brunei Darussalam
$6%  
Singapore 

  
,   
  



Indonesia
3 
   
 

 
 7    The Pacific
 
  8
%
%
  

  
C    
?C ?; ?; 
;>
 ;;

 @@
 @<
 

$IJKDQLVWDQ
7LPRU/HVWH
%DQJODGHVK

 (@
&DPERGLD
,QGRQHVLD
0RQJROLD

0\DQPDU
/DR3'5

(( 
3DNLVWDQ


<@
1HSDO

  <A
,QGLD

 

Energy Statistics in Asia and the Pacific +<**)7())?/+, - ./#World Energy Outlook 2009 +3     /
0012 MARK BLACKWELL, DANA WILLIAMS ,34 MARK BLACKWELL

ZZZGHYHORSPHQWDVLD -XO\²6HSWHPEHU 'HYHORSPHQW$VLD

 ,5,9.@:,*<90;@!;/,)0.=60*,
7DLOZLQGV 
,QDQH[FOXVLYHLQWHUYLHZIRUPHU3KLOLSSLQHV(QHUJ\6HFUHWDU\
9LQFHQW3HUH]GLVFXVVHVWKHLPSDFWRIHQHUJ\SROLF\RQSRYHUW\
DQGWKHFKDOOHQJHVIRUDJUHHQHQHUJ\UHYROXWLRQLQ$VLD
%<)OR\G:KDOH\
:
KHQ*ORULD0DFDSDJDO
$UUR\REHFDPH
SUHVLGHQWRIWKH
3KLOLSSLQHVLQ-DQXDU\
VKHVHDUFKHGIRUG\QDPLF\RXQJ
)LOLSLQRVZLWKVXFFHVVIXOLQWHUQDWLRQDO
FDUHHUVZKRFRXOGEULQJWKDWH[SHUWLVH
KRPHWRVHUYHWKHLUFRXQWU\9LQFHQW
3HUH]ZDVRQHRIWKRVHVKHIRXQG
$Q0%$JUDGXDWHRIWKH
:KDUWRQ6FKRRODWWKH8QLYHUVLW\RI
3HQQV\OYDQLD3HUH]DWWKHWLPHKDG
DPDVVHG\HDUVRIH[SHULHQFHLQWKH
ZRUOGRILQWHUQDWLRQDOEDQNLQJDQG
ÀQDQFH+LVEDFNJURXQGLQFOXGHG
URXJKDQGWXPEOHH[SHULHQFHVZLWK
/DWLQ$PHULFDQFUHGLWDQGGHEW
UHVWUXFWXULQJGXULQJWKHFXUUHQF\FULVLV
LQWKDWUHJLRQDQGODWHUGHDOLQJLQGHEW
WUDGLQJFDSLWDOPDUNHWVDQGSULYDWH
HTXLW\LQHPHUJLQJFRXQWULHVIURP
/RQGRQ1HZ<RUNDQG6LQJDSRUH
$W3HUH]ZDVWKHÀUVWJHQHUDO
SDUWQHURI$VLDQGHVFHQWDWWKH1HZ
<RUNLQYHVWPHQWEDQN/D]DUG)UqUHV
VHUYLQJDVKHDGRILWV(PHUJLQJ
0DUNHWV*URXS+HUHWXUQHGWR$VLDWR
VHUYHDVPDQDJLQJGLUHFWRURI/D]DUG
$VLDLQ6LQJDSRUHIURPWR
DQGKHODWHUIRXQGHGWKH6LQJDSRUH
EDVHGSULYDWHHTXLW\ÀUP1H[W&HQWXU\
3DUWQHUVZKLFKLQYHVWHGLQKLJKSURÀOH
FRPSDQLHVLQWKH3KLOLSSLQHV
3HUH]ZDVDULVLQJVWDULQWKHZRUOG
RILQWHUQDWLRQDOÀQDQFHDWD\RXQJDJH
EXWKHKDUERUHGPLVJLYLQJVDERXWKLV
FKRVHQFDUHHUSDWK´7KHUHZDVDVHQVH
WKDW,KDGMRLQHGWKHUDWUDFHDQGKDG
FOLPEHGWRWKHWRS:KDWGLGWKDWPDNH
PH"7KHELJJHVWUDW"µVD\V3HUH]RQO\
'HYHORSPHQW$VLD -XO\²6HSWHPEHU
KDOILQMHVW7KRXJKKHZDVDWWKHWRS
RIKLVJDPHLQWHUPVRIÀQDQFHKHVD\V
WKHDFKLHYHPHQWVZHUHEHFRPLQJOHVV
VDWLVI\LQJ´$IWHUDPDMRUGHDO,IHOWZH
KDGMXVWPDGHVHYHUDOPLOOLRQGROODUV
EXWQRWKLQJHOVHKDGFKDQJHGµ
:KHQ3UHVLGHQW$UUR\RFDOOHG
3HUH]LQDQGDVNHGKLPWRVHUYH
LQKHUFDELQHWKHHQYLVLRQHGDFXVK\
DPEDVVDGRU·VSRVW´,KDGLPDJHV
RIEHLQJGULYHQE\DFKDXIIHXUWR
FRFNWDLOSDUWLHVµKHVD\VZLWKDJULQ
%XW$UUR\RKDGDPRUHVXEVWDQWLYH
SRVWLQPLQGÀUVWLQVWDOOLQJKLPLQ
WKH3KLOLSSLQHV·'HSDUWPHQWRI7UDGH
DQG,QGXVWU\DQGODWHULQ-XQH
DSSRLQWLQJKLPWKH\RXQJHVWHQHUJ\
PLQLVWHULQWKHFRXQWU\·VKLVWRU\
&RPLQJIURPWKHZRUOGRI
LQWHUQDWLRQDOÀQDQFH3HUH]GLGQRW
PDNHDFRPIRUWDEOHODQGLQJLQWKH
SXEOLFVHFWRU7KHHQHUJ\VHFUHWDU\·V
SRUWIROLRZDVULGGOHGZLWKFULVHV7KH
ZDULQ,UDTZDVUDJLQJTXDGUXSOLQJWKH
SULFHRIRLOIRUWKHLPSRUWGHSHQGHQW
3KLOLSSLQHVZKLOHSRZHUVKRUWDJHV
DQWDJRQL]HGDSXEOLFDOUHDG\DJLWDWHG
DERXWWKHVWDWHRIWKHFRXQWU\·VHQHUJ\
VXSSO\´+DG,NQRZQZKDW,ZDV
JHWWLQJLQWR,ZRXOGKDYHUHVLVWHGWKH
HQHUJ\SRVW%XWVRPHWLPHVLJQRUDQFH
LVEOLVV,VDLGRND\LIWKDW·VZKDWWKH
SUHVLGHQWZDQWV,·OOVHHZKDW,FDQGRµ
3HUH]VHUYHGDVHQHUJ\VHFUHWDU\
IURPWRDQGHVWDEOLVKHGD
UHSXWDWLRQDVDFKDPSLRQRIFOHDQ
3,&785(&5(',7$)3
3,&785(&5(',7$)3
UHQHZDEOHHQHUJ\6LQFHOHDYLQJSXEOLF
RIÀFH3HUH]KDVEHHQVHUYLQJDVFKLHI
H[HFXWLYHRIÀFHURIWKHUHQHZDEOH
HQHUJ\FRPSDQ\$OWHQHUJ\3DUWQHUV
ZZZGHYHORSPHQWDVLD
 +HLVDOVRDQLQYHVWRULQ1RUWK:LQG
3RZHUWKHÀUVWFRPPHUFLDOZLQG
IDUPLQ6RXWKHDVW$VLD,QDGGLWLRQ
KHLVFKDLUPDQRIWKHHQYLURQPHQWDO
RUJDQL]DWLRQ::)3KLOLSSLQHV$WKLV
RIÀFHLQ0DQLOD3HUH]VDWGRZQZLWK
'HYHORSPHQW$VLDVHQLRUHGLWRU)OR\G
:KDOH\WRGLVFXVVWKHFKDOOHQJHVRIOLIH
LQWKHSXEOLFVHFWRUDQGWKHKRSHVIRUD
UHQHZDEOHHQHUJ\UHYROXWLRQLQ$VLD

'$+RZZRXOG\RXFRPSDUHZRUNLQJLQ
WKHSULYDWHVHFWRUWRJRYHUQPHQWVHUYLFH"
93,QWKHSULYDWHVHFWRUZHDUH
IRFXVHGRQUHVXOWV'LGZHKLWRXU
QHWLQFRPHWDUJHW"'LGZHPDNHRXU
EXGJHW",QJRYHUQPHQWLW·VQRWMXVW
DERXWUHVXOWV(TXDOO\LPSRUWDQWLVWKH
SURFHVV'LGZHFRQVXOWHYHU\RQH"'LG
ZHHQJDJHDOOWKHVWDNHKROGHUV"'LG
ZHFRPPXQLFDWHWKHSURVDQGFRQV" $3528')$7+(59LQFHQW3HUH]
:K\ZDVWKLVSXEOLFSROLF\SXUVXHG" KHOSHGWREDQNUROOWKHZLQGIDUPSURMHFW
+RZGRHVLWEHQHÀWWKHFRQVXPHU"
+RZGRHVLWEHQHÀWWKHVWDWH"2IWHQ
WKHUHDUHYHU\VKDUSSHRSOHZKRKDYH
GRQHZHOOLQWKHSULYDWHVHFWRUEXWRQFH
WKH\MRLQWKHSXEOLFVHFWRUWKH\WULSXS
EHFDXVHWKH\LJQRUHWKHSURFHVV
'$+RZGR\RXGHILQHHQHUJ\VHFXULW\"
93(QHUJ\VHFXULW\LVYHU\VLPSO\WKH
UHGXFWLRQRIULVNWR\RXUHQHUJ\VXSSO\
,WLVDERXWWU\LQJWRHQVXUHWKDWD
VKRUWDJHLQDQ\RQHIXHOZLOOQRWUHVXOW
LQDORVVRIHQHUJ\WKDWZLOOUHGXFH
WKHHFRQRPLFJURZWKRIWKHFRXQWU\
(QHUJ\VHFXULW\LVDNH\FRPSRQHQWRI
QDWLRQDOVHFXULW\SDUWLFXODUO\LQ$VLD
)RUWKH3KLOLSSLQHVHQHUJ\VHFXULW\
PHDQVUHGXFLQJRXUGHSHQGHQFHRQ
LPSRUWHGIXHO,QWKHÀUVWRLO
VKRFNZHZHUHLPSRUWLQJRI
RXURLO%\ZHKDGEURXJKWWKDW
GRZQWRRIRXUHQHUJ\QHHGV
E\GLYHUVLI\LQJLQWRLQGLJHQRXV
3,&785(&5(',7.(9,1+$0'25)
QDWXUDOJDVJHRWKHUPDOHQHUJ\DQG
K\GURSRZHUXVLQJFRDOZKLFKZH
VWLOOQHHGWRLPSRUWDQGLQYHVWLQJLQ
HPHUJLQJUHQHZDEOHSRZHUVXFKDV
ZLQG
(QHUJ\VHFXULW\PHDQVUHO\LQJRQ
PRUHWKDQRQHW\SHRIIXHO1RUZD\
ZZZGHYHORSPHQWDVLD
LQ%DQJXL%D\/()7LQQRUWKHUQ
3KLOLSSLQHV
LVK\GURZKLFKLQPDQ\ZD\VLV
YHU\JRRG7KH\GRQ·WKDYHWRLPSRUW
IXHO,QIDFWWKH\IRXQGRLOLQWKH
1RUWK6HDDQGWKH\DUHH[SRUWLQJLW
%XWLIWKHUHLVDGURXJKWGXHWRFOLPDWH
FKDQJH1RUZD\ZRXOGEHVHYHUHO\
LPSDFWHGE\WKHLURYHUGHSHQGHQFH
RQK\GUR1DWLRQVQHHGDGLYHUVLÀHG
HQHUJ\PL[
'$$VHQHUJ\VHFUHWDU\KRZGLG\RX
DGGUHVVWKHUHODWLRQVKLSEHWZHHQ
HQHUJ\SROLF\DQGSRYHUW\"
93:LWKLQPRQWKVRIP\
DSSRLQWPHQWDVHQHUJ\PLQLVWHUWKH
3UHVLGHQWDVNHGHDFKFDELQHWPHPEHU
WRFRQFHSWXDOL]HDQGGHYHORSD
SRYHUW\DOOHYLDWLRQSURJUDPLQWKHLU
UHVSHFWLYHGHSDUWPHQWV,IHOWDIWHUD
ORWRILQWHUQDOGLVFXVVLRQWKDWWKHNH\
SRYHUW\SURJUDPWRSURPRWHVKRXOG
EHUXUDOHOHFWULÀFDWLRQ7KHUHLVDQ
LQGLVSXWDEOHFRUUHODWLRQEHWZHHQWKH
ODFNRIHOHFWULFLW\DQGSRYHUW\DVZHOO
DVKLJKSRSXODWLRQJURZWKUDWHVORZ
HGXFDWLRQDODWWDLQPHQWDQGHYHQD
ODFNRISHDFHDQGRUGHU
-XO\²6HSWHPEHU 'HYHORSPHQW$VLD
 ,5,9.@:,*<90;@!;/,)0.=60*,

2XUWDUJHWZDVWRHOHFWULI\IRXU
YLOODJHVDGD\,WZDVDPDVVLYH
FROOHFWLYHHIIRUW:HZHQWIURP
RIWKHFRXQWU\·VYLOODJHVUHFHLYLQJ
HOHFWULFLW\ZKHQ,WRRNRYHUWRDERXW
ZKHQ,OHIWLQ,W·VQRZDW
,ZRXOGWU\WRGRDUXUDOHOHFWULÀFDWLRQ
HYHQWHYHU\)ULGD\7KDW·VZKHQ,
ZRXOGVHHÀUVWKDQGKRZPXFKZHWDNH
HOHFWULFLW\IRUJUDQWHGZKLOHPLOOLRQV
DURXQGWKHZRUOGOLYHZLWKRXWLW,Q
WKH3KLOLSSLQHSURYLQFHRI3DODZDQ
ZHEURXJKWVRODUSDQHOVWRDQDWLYH
KXWDQGDQHOGHUO\ODG\FDPHRXWDQG
HPEUDFHGPH6KHZDVFU\LQJDQGVDLG
VKHWKRXJKWVKHZDVJRLQJWRGLHEHIRUH
HOHFWULFLW\FDPHWRKHUKRPH7KDW
PRPHQWHQFDSVXODWHGZKDWWKLVZDV
DOODERXW$QRWKHUWLPHZHZHQWWRWKH
UHPRWH3KLOLSSLQHSURYLQFHRI7DZL
7DZLZKHUHZHLQVWDOOHGDVRODUSRZHU
SD\SKRQH)LVKHUPHQXVHGLWWRFDOO
0DQLODWRFKHFNPDUNHWSULFHVEHIRUH
WKH\VROGWKHLUFDWFKWRORFDOWUDGHUV
,QZKHQWKLVSURMHFWZDVEXLOW 62&,$/&2673HUH]LQVSHFWVDJDVROLQH
LWZDVRQO\YLDEOHEHFDXVHRIVRIWORDQV VWDWLRQGXULQJKLVWHUPDVHQHUJ\
IURPWKH'DQLVKJRYHUQPHQWEHFDXVH PLQLVWHURIWKH3KLOLSSLQHV+HVD\VWKH
7RFHOHEUDWHPLOHVWRQHVRIYLOODJH
HOHFWULÀFDWLRQVXFKDVWKHWK
YLOODJHRUWKYLOODJHZHZRXOG
JLYHDJLIW,ZRXOGDVNWKHPZKDWNLQG
RIHOHFWULFDODSSOLDQFHWKH\ZDQWHG
7KH\GLGQ·WZDQWDQDLUFRQGLWLRQHU
RUUHIULJHUDWRU7KH\DOZD\VZDQWHG
NDUDRNHPDFKLQHV:HJDYHDZD\PRUH
WKDQDIHZNDUDRNHPDFKLQHV
'$<RXҋYHLQYHVWHGLQ1RUWK:LQG3RZHU
DSURMHFWLQWKHQRUWKHUQ3KLOLSSLQHVWKDW
LV6RXWKHDVW$VLDҋVILUVWFRPPHUFLDO
ZLQGIDUP,VWKDWDYLDEOHSURGXFHU
RIHQHUJ\RUPRUHRIDSURWRW\SH"
937KDWLQYHVWPHQWLVFUHGLWHGWR
SULYDWHHQWUHSUHQHXUV'DQLVKDQG
)LOLSLQRZKRVWDUWHGLW,ZDVLPSUHVVHG
ZLWKWKHLUWHQDFLW\WREXLOGWKLV
SLRQHHULQJSURMHFW7KH\FDPHWRPH
DQGDVNHGLI,FRXOGKHOSUDLVHPRQH\WR
SD\IRUDGGLWLRQDOHTXLSPHQW,VWDUWHG
ORRNLQJIRUSRWHQWLDOLQYHVWRUVIRUWKHP
EXWWKHPRUH,ORRNHGDWWKHLUEXVLQHVV
'DQLVKHTXLSPHQWZDVXVHG6LQFH
WKHQWXUELQHSULFHVKDYHFRPHGRZQ
DQGWKHVKRUWDJHKDVHDVHGZLWKQHZ
HTXLSPHQWFRPLQJIURPGHYHORSLQJ
FRXQWULHVOLNH&KLQDDQG,QGLD$OVR
RLODQGFRDOSULFHVKDYHULVHQ7KDW
PHDQVWKDWHOHFWULFLW\SULFHVKDYHULVHQ
VRWKHSURMHFWLVTXLWHFRPSHWLWLYH
QRZWKRXJKLWPLJKWVWLOOQHHGDVPDOO
VXEVLG\%XWWKHWHFKQRORJ\LVQRZ
SURYHQDQGLQFUHDVLQJWKHVFDOHZLOO
IXUWKHUUHGXFHFRVWV7KHSURMHFWQRZ
VXSSOLHVDERXWRIWKHHQHUJ\
QHHGVRIWKHSURYLQFHZKHUHLWLV
ORFDWHG
0\YLVLRQLVWRVHHWKHQRUWKHUQ
3KLOLSSLQHVZLWKDORQJFRDVWOLQHRI
FOHDQHOHJDQWZLQGPLOOVSRZHULQJ
WKHQRUWKRIWKHFRXQWU\:KHQWKLV
SURMHFWZDVEXLOWWKHUHZDVRQO\RQH
ODUJHLQYHVWPHQWLQWKDWSURYLQFHD
UHVRUWDQGFDVLQR7KLVSURMHFWKDV
OHGWRPRUHLQYHVWPHQWEXWPRUH
LPSRUWDQWO\LWKDVHQFRXUDJHGWRXULVP
RLOVSLOOLQWKH*XOIRI0H[LFR5,*+7LV
DYLYLGH[DPSOHRIWKHVRFLDOFRVWVRI
IRVVLOIXHO
'$$UHQҋWWKHUHVLJQLILFDQWFKDOOHQJHV
DVVRFLDWHGZLWKZLQGSRZHUVXFKDV
WKHVWDELOLW\RIWKHSRZHULWSURGXFHV
DQGWKHORJLVWLFDOFKDOOHQJHVRI
LPSRUWLQJWKHHTXLSPHQW"
937KHRQO\VKRUWFRPLQJRIZLQG
LVWKDWLWLVLQWHUPLWWHQW<RXFDQQRW
SUHGLFWZKHQLWZLOOEORZ7KHQH[W
ZDYHRIWHFKQRORJ\DQGUHVHDUFK
ZLOOLQYROYHSUHGLFWLQJZLQG7KDW
LVWKHQH[WFKDOOHQJHIRULQWHUPLWWHQW
UHVRXUFHVVXFKDVZLQGDQGVRODU
)RUZLQGSRZHUWKHWXUELQHVDUHWKH
PRVWKLJKYDOXHLWHP7KHVHWXUELQH
EODGHVDUHDOPRVWOLNHDSURSULHWDU\
GHVLJQOLNHDQDLUFUDIWPDNHUVSHQGLQJ
PLOOLRQVRIGROODUVGHVLJQLQJDQ
DHURG\QDPLFDLUFUDIWGHVLJQ7KDW
LQWHOOHFWXDOSURSHUW\LVEDVHGLQ(XURSH
3,&785(&5(',7$)3

PRGHOWKHPRUH,WKRXJKW,VKRXOG 7KLVOLWWOHVOHHS\FRDVWDOWRZQ>%DQJXL@ DQGWKH8QLWHG6WDWHV86EXWWKHVXE

SUREDEO\MXVWSXWWKHPRQH\LQP\VHOI KDVEHFRPHDWRXULVWGHVWLQDWLRQZLWK PDQXIDFWXULQJDQGDVVHPEO\DUHEHLQJ
7KDW·VKRZ,JRWLQYROYHGSXWWLQJP\ UHVWDXUDQWVFDIpVDQGKDQGLFUDIWVKRSV GRQHLQ,QGLDDQG&KLQDDQGVRRQ
PRQH\ZKHUHP\PRXWKLV RSHQLQJXS LQ.RUHDDVZHOO7KHNH\HTXLSPHQW

'HYHORSPHQW$VLD -XO\²6HSWHPEHU ZZZGHYHORSPHQWDVLD


FDQQRZEHLPSRUWHGIURP$VLD7KH
WRZHUVDUHMXVWORZYDOXHVWHHOWRZHUV
WKDWFDQEHSURGXFHGORFDOO\7KH
JHDUER[DQGWKHJHQHUDWRUKDYHWREH
LPSRUWHGIURP(XURSH
'$$FURVVWKHUHJLRQZKDWGR\RXVHH
DVWKHSURVSHFWVIRUWKHGHYHORSPHQW
RIUHQHZDEOHHQHUJ\UHVRXUFHV"
93$VLDKDVEHFRPHRQHRIWKHJURZWK
DUHDVIRUUHQHZDEOHHQHUJ\&KLQDKDV
PDGHDPDMRULQYHVWPHQWLQSURPRWLQJ
ZLQGWKURXJKDYHU\DPELWLRXV
UHQHZDEOHHQHUJ\ODZWKDWZDVSDVVHG
LQ,QDFHQWUDOO\SODQQHGHFRQRP\
VRPHWLPHVLWLVHDVLHUWRGRWKDW<RXFDQ
WHOOWKHVWDWHRZQHGSRZHUFRPSDQLHVWR
EXLOGVRPDQ\SHUFHQWUHQHZDEOHSRZHU
SURMHFWV$QGWKH\KDYHDQLQGXVWULDO
SROLF\RIVD\LQJWKDWWKH\ZDQWRI
WKHFRPSRQHQWVWREHEXLOWLQ&KLQD
7KH\DUHDEOHWRGRWKDWEHFDXVHRI
WKHVL]HRIWKHLUHFRQRP\7KH\KDYH
KRPHJURZQFRPSDQLHVVXFKDV
*ROGZLQGWKDWKDYHVWDUWHGWRGHYHORS
WKHLURZQLQFRXQWU\WHFKQRORJ\
,QGLDKDVDOVRGRQHYHU\ZHOOZLWK
3,&785(&5(',7$)3
FRPSDQLHVOLNH6X]ORQLQ,QGLDWR
SURGXFHKRPHJURZQWHFKQRORJ\ZLWK
'DQLVKUHJLRQDOGHVLJQ7KH\KDYHD
VHSDUDWHPLQLVWU\RIUHQHZDEOHV&KLQD
ZZZGHYHORSPHQWDVLD
DQG,QGLDKDYHOHGWKHZD\IRURWKHU
$VLDQFRXQWULHV
7KHPDMRUFKDOOHQJHIRUUHQHZDEOH
HQHUJ\LVDFFHVVWRWUDQVPLVVLRQ
FDSDFLW\+XQGUHGVRIZLQGPLOOV
LQ&KLQDDUHVSLQQLQJEXWDUHQRW
FRQQHFWHGWRWKHJULG5HQHZDEOH
HQHUJ\SURMHFWVDUHVLWHVSHFLÀFXQOLNH
FRDORUQDWXUDOJDV<RXFDQVHWXSD
FRDOSODQWDQ\ZKHUHLW·VMXVWDPDWWHU
RIEULQJLQJLQWKHFRDOVXSSO\%XW\RX
FDQQRWVHWXSDJHRWKHUPDOSODQWRU
ZLQGIDUPLQDQ\ORFDWLRQ\RXKDYHWR
EXLOGWKHIDFLOLW\ZKHUHWKHUHVRXUFHLV
7KDWLVZK\WUDQVPLVVLRQDFFHVVLVRQH
RIWKHELJJHVWFKDOOHQJHV
$QRWKHUFKDOOHQJHLVEXLOGLQJ
UHJXODWRU\FDSDFLW\,Q,QGLDWKH
YDULRXVVWDWHHOHFWULFLW\ERDUGVKDYH
GRQHDJRRGMRELQGHWHUPLQLQJDIDLU
SULFHIRUZLQGVRODUDQGELRPDVV
HQHUJ\2WKHUFRXQWULHVOLNH*HUPDQ\
DQG$XVWUDOLDDVZHOODVVRPHVWDWHV
LQWKH86KDYHYHU\SURJUHVVLYH
OHJLVODWLRQLQWHUPVRISURPRWLQJ
UHQHZDEOHHQHUJ\:HQHHGWREULQJ
WKLVWRPRUHFRXQWULHVLQ$VLD
'$:KLOHSURPRWLQJUHQHZDEOHHQHUJ\
VRPHRIWKHUHJLRQDOOHDGHUVVXFKDV
WKH3HRSOHҋV5HSXEOLFRI&KLQDDUHDOVR
´:H·UHDOOZRUULHG
DERXWZKDW·V
KDSSHQLQJLQWKH*XOI
RI0H[LFR,ZLOOWHOO
\RXWKLV³WKHUHZLOO
QHYHUEHDZLQGVSLOOµ
DJJUHVVLYHO\SXUVXLQJWUDGLWLRQDOIRUPVRI
HQHUJ\WKDWDUHOLQNHGWRFOLPDWHFKDQJH
'R\RXVHHDFRQWUDGLFWLRQLQWKDW"
932QHRIWKHGLIÀFXOWLHVRIDFRXQWU\·V
HQHUJ\SRUWIROLRLVWKDWLWWDNHV\HDUVWR
PDNHDGHQWLQ\RXUHQHUJ\PL[7KHUH
LVDORQJJHVWDWLRQSHULRGIRUEXLOGLQJ
SRZHUSODQWV7KHHFRQRPLHVRI&KLQD
DQG,QGLDKDYHEHHQJURZLQJDWDERXW
D\HDU-XVWWRNHHSXSZLWKWKDW
JURZWKWKH\VRPHWLPHVKDYHWRRSW
IRUWKHIDVWHVWVROXWLRQRUWKHOHDVWFRVW
VROXWLRQZKLFKLVFRDO7KH\KDYHWR
GRWKDWMXVWVRWKDWWKHOLJKWVZRQ·WJR
RII:KHQ\RXDUHUXQQLQJDWWKDWFOLS
\RXMXVWGRQ·WKDYHPXFKÁH[LELOLW\WR
LPSRVHDFOLPDWHFKDQJHLPSHUDWLYHLQ
\RXUHQHUJ\SROLF\
7KDWLVVWDUWLQJWRFKDQJHQRZ&KLQD
LVDZDUHWKDWLWLVQRZWKHODUJHVWFDUERQ
HPLWWHULQWKHZRUOGDQGWKDWWKHUHDUH
KHDOWKDQGHQYLURQPHQWDOFRVWVWRWKLV
LQGLVFULPLQDWHFRDOSRZHUH[SORVLRQ
,·PSOHDVHGZLWKWKHVLJQDOVWKH\
DUHVHQGLQJ7KH\KDYHSDVVHGYHU\
DJJUHVVLYHDXWRHPLVVLRQVVWDQGDUGV
7KH\DUHJRLQJWREHWKHOHDGHULQHOHFWULF
FDUSURGXFWLRQLQWKHZRUOG7KH\KDYH
EXLOWKXJHZLQGSRZHUFDSDFLW\DQG
ZH·UHVHHLQJPRUHSROLF\VWDWHPHQWVWKDW
LQGLFDWHWKDW&KLQDUHFRJQL]HVLWVQHHGWR
GLYHUVLI\DZD\IURPFRDO
'$:KDWKDVEHHQ\RXUUHDFWLRQ
ZDWFKLQJWKHFDWDVWURSKLFRLO
VSLOOLQWKH*XOIRI0H[LFR"
93:H·UHDOOZRUULHGDERXWZKDW·V
KDSSHQLQJLQWKH*XOIRI0H[LFR7KDW
LVDYHU\YLYLGH[DPSOHRIWKHVRFLDO
FRVWVRIIRVVLOIXHO,ZLOOWHOO\RXWKLV
WKHUHZLOOQHYHUEHDZLQGVSLOOQ
-XO\²6HSWHPEHU 'HYHORSPHQW$VLD
 ,5,9.@:,*<90;@

&ORJJHG$UWHULHV 
1HZSRZHUSODQWVKDYHVSUXQJXSDFURVV$VLDEXWWKHFRQVWUXFWLRQRIJULGVDQGWKHXSJUDGLQJDQG
H[WHQVLRQRIWKHH[LVWLQJSDWFKZRUNRISRZHUOLQHVKDYHQRWNHSWSDFH
%<-RKQ2WLV

,
ISRZHUSODQWVUHSUHVHQW
WKHSXPSLQJKHDUWRI
$VLD·VHOHFWULFLW\QHWZRUN
WUDQVPLVVLRQOLQHVVHUYHDVWKH
EORRGYHVVHOV%XWIURPWKH3HRSOH·V
´7KHUH·VDGLUHFWUHODWLRQVKLS
EHWZHHQHFRQRPLFDQGSRSXODWLRQ
JURZWKDQGHOHFWULFLW\GHPDQGµVD\V
-RQDWKDQ'RZHUGLUHFWRURIVWUDWHJ\
DQGGHYHORSPHQWDW,+6(PHUJLQJ
5XVVLDQ)HGHUDWLRQPDQ\JLJDZDWWV
RIZLQGFRDODQGK\GURHOHFWULFSRZHU
DUHJHQHUDWHGLQUHPRWHDUHDVDQGPXVW
EHWUDQVIHUUHGDWVLJQLÀFDQWFRVWWR
IDUDZD\FLWLHV6XEVLGL]HGHOHFWULFLW\
5HSXEOLFRI&KLQD35&WR&HQWUDO
$VLDWR,QGRQHVLDHOHFWULFLW\JULGV
DUHDQWLTXDWHGDQGRYHUZKHOPHG
$OWKRXJKJUHDWVWULGHVKDYHEHHQPDGH
LQVRPHQDWLRQVPRUHWKDQPLOOLRQ
SHRSOHLQWKHUHJLRQVWLOOKDYHQRDFFHVV
WRHOHFWULFLW\DFFRUGLQJWRDUHSRUW
SXEOLVKHGODVW\HDUE\WKH,QWHUQDWLRQDO
(QHUJ\5HVHDUFKRI&DPEULGJH
0DVVDFKXVHWWVZKLFKSURYLGHV
DQDO\VLVRQFOHDQDQGUHQHZDEOHHQHUJ\
PDUNHWV´,QWKH86ZKHUHJURZWK
LQHOHFWULFLW\GHPDQGKDVEHHQRU
VRDQQXDOO\LWKDVQ·WEHHQVXFKDELJ
EXUGHQ%XWLQ$VLDQFRXQWULHVWKHUH·V
EHHQDQHQRUPRXVMXPSLQHOHFWULFLW\
UDWHVDQGJRYHUQPHQWPRQRSROLHV
FDQGLVFRXUDJHIRUHLJQLQYHVWPHQW
$QGEHFDXVHNHHSLQJWKHOLJKWVRQDW
KRPHDQGZLULQJLPSRYHULVKHGUXUDO
FRPPXQLWLHVDUHVWLOOPDMRUFKDOOHQJHV
$VLDQQDWLRQVKDYHODUJHO\QHJOHFWHG
WKHORQJVWDQGLQJJRDORIEXLOGLQJ
JULGVDFURVVERUGHUVLQRUGHUWREX\
(QHUJ\$JHQF\,($
7RNHHSSDFHZLWK$VLD·VUDSLG
HFRQRPLFJURZWKQHZFRDOQDWXUDO
JDVK\GURHOHFWULFDQGZLQGSRZHU
JHQHUDWLRQSODQWVDUHFRPLQJRQVWUHDP
%XWWKHFRQVWUXFWLRQRIQHZJULGVDQG
GHPDQGµ
0HDQZKLOHDVPRUHFRDO
JHRWKHUPDOK\GURHOHFWULFZLQG
DQGVRODUSURMHFWVDUHEXLOWJULG
LPSURYHPHQWVDFURVV$VLDZLOOKDYHWR
VWD\LQVWULGH,QGRQHVLDIRUH[DPSOH
DQGVHOOHOHFWULFLW\
6WLOOWKHEXUGHQVKDYHDOVROHG
WREUHDNWKURXJKV7KH35&KDV
EHFRPHDOHDGHULQWKHFRQVWUXFWLRQ
RIVRFDOOHG´VPDUWJULGVµ³ZKLFK
PD[LPL]HHQHUJ\HIÀFLHQF\³DQG
WKHXSJUDGLQJDQGH[WHQVLRQRIWKH
H[LVWLQJSDWFKZRUNRISRZHUOLQHVKDYH
QRWNHSWXS$VDUHVXOWVRPHH[SHUWV
OLNHQ$VLD·VFRQGLWLRQWRDSLQFKHGQHUYH
WKRXJKWKHEXONRIWKHERG\IXQFWLRQV
VRPHRI$VLD·VOLPEVDQGDSSHQGDJHVDUH
GLVFRQQHFWHG³DQGDWURSK\LQJ
5$3,'*52:7+
$VLD·VJULGZRHVDUHKDUGO\XQLTXH,Q
WKH8QLWHG6WDWHVHIIRUWVWRLQWHJUDWH
QHZO\FRQVWUXFWHGZLQGIDUPVLQWR
UHJLRQDOJULGVKDYHEHHQGHOD\HG
EHFDXVHWUDQVPLVVLRQOLQHVDUHDOUHDG\
DWIXOOFDSDFLW\%XWWKDW·VZKHUHWKH
VLPLODULWLHVHQG:KLOHWKH86HFRQRP\
KDVHLWKHUFRQWUDFWHGRUUHJLVWHUHG
PRGHVWJURZWKUDWHVUHFHQWO\$VLD
KDVSRVWHGDVHYHQIROGLQFUHDVHLQ
HFRQRPLFJURZWKRYHUWKHSDVW\HDUV
ZKLOHHQHUJ\FRQVXPSWLRQKDVWULSOHG
DFFRUGLQJWRDUHFHQWUHSRUWE\WKH
:RUOG%DQN
'HYHORSPHQW$VLD -XO\²6HSWHPEHU
FRXOGH[SDQGJHRWKHUPDOSURMHFWVEXW
IRUQRZLWVWUDQVPLVVLRQOLQHVZRXOG
EHXQDEOHWRKDQGOHWKHQHZORDGVD\V
'HMDQ2VWRMLFWKH:RUOG%DQN·VVHFWRU
OHDGHUIRUHQHUJ\LQWKH(DVW$VLDDQG
3DFLÀFUHJLRQ
´7KHTXHVWLRQLV¶'R\RXKDYHWKH
ULJKWLQFHQWLYHVDQGSROLFLHVLQSODFH
WRPDNHVXUHWKHJULGLVH[SDQGLQJ
DGHTXDWHO\WRUHFHLYHDOORIWKLV
DGGLWLRQDOJHQHUDWLRQ"·µ2VWRMLFVD\V
´$WÀUVWZHGLGQ·WVHHWKLVDVDOLPLWLQJ
IDFWRULQPRVWRIWKHUHJLRQ%XWQRZ
WKLVLVDQLVVXHEHFDXVHZHDUHVHHLQJD
IDVWDQGODUJHLQFUHDVHLQUHQHZDEOHVµ
(YHQZKHQJRYHUQPHQWVVHFXUH
WKHÀQDQFLQJWRXSJUDGHWKHLUJULGV
WKH\IDFHSROLWLFDOWHFKQRORJLFDO
DQGJHRJUDSKLFDOREVWDFOHV+RZ
IRUH[DPSOHGRWKH\FRQQHFWWKH
WKRXVDQGVRILVODQGVPDNLQJXS
,QGRQHVLDDQGWKH3KLOLSSLQHV"6KRXOG
WKH\HYHQWU\",QWKH35&DQGWKH
KLJKYROWDJHGLUHFWFXUUHQW+9'&
WUDQVPLVVLRQOLQHV7KHPDVVLYH
GHPDQGIRUHOHFWULFLW\KDVDFFHOHUDWHG
GHYHORSPHQWRIUHQHZDEOHHQHUJ\
VRXUFHV*RYHUQPHQWVPHDQZKLOHDUH
LGHQWLI\LQJWUDQVPLVVLRQERWWOHQHFNV
DQGSOHGJLQJWRDFKLHYH
HOHFWULÀFDWLRQ
´*HWWLQJHOHFWULFLW\WRWKHSHRSOH
LVVRLPSRUWDQWIRUHFRQRPLF
GHYHORSPHQWµVD\V3HWHU+DUWOH\D
SURIHVVRURIHQHUJ\HFRQRPLFVDWWKH
-DPHV$%DNHU,,,,QVWLWXWHIRU3XEOLF
3ROLF\DW5LFH8QLYHUVLW\LQ+RXVWRQ
7H[DV´6WXGHQWVFDQUHDGDQGGR
KRPHZRUNDWQLJKW5HIULJHUDWLRQ
KHOSVSUHVHUYHIRRGDQGSUHYHQW
GLVHDVHV(OHFWULFDODSSOLDQFHVFDQ
UHOLHYHZRPHQRIDORWRIGUXGJHU\LQ
WKHNLWFKHQ3RZHUIRUKHDOWKFOLQLFV
IRUDJULFXOWXUHIRUSXPSLQJZDWHU
PDNHVDKXJHGLIIHUHQFH7KHOLVWMXVW
JRHVRQDQGRQµ
ZZZGHYHORSPHQWDVLD
 5,6,1*'(0$1'
6RPHRIWKHPRVWLPSRUWDQWSRZHUJULG
DGYDQFHVFDQEHIRXQGLQWKHFRXQWU\
ZLWKVRPHRIWKHELJJHVWWUDQVPLVVLRQ
FKDOOHQJHV,QWKH35&ZKHUHRI
WKHSRSXODWLRQKDVDFFHVVWRHOHFWULFLW\
WKHSUREOHPLVQRWWKHUHDFKRIWKH
FRXQWU\·VSRZHUOLQHVEXWJDOORSLQJ
GHPDQG$FFRUGLQJWRWKH:RUOG%DQN
WKH35&DFFRXQWVIRURIWKHHQHUJ\
FRQVXPSWLRQLQ(DVW$VLDDQGWKH
E
% 
WRÀQDQFHDSULYDWHVHFWRUZLQGIDUP
WKDWZLOOSURGXFHXSWRJLJDZDWW
´7KHUH·VDPLVPDWFK
KRXUVDQQXDOO\
7KHPRYHLQWRUHQHZDEOHVKDVPDGH EHWZHHQWKHSDFHRI
WKH35&WKHZRUOG·VVHFRQGODUJHVW UHQHZDEOHSRZHU
SURGXFHURIZLQGHQHUJ\DIWHUWKH86
LQVWDOODWLRQDQG
,QVRPHZD\VKRZHYHUWKH35&KDV
PRYHGWRRIDVWRQSRZHUJHQHUDWLRQ WUDQVPLVVLRQ
FUHDWLQJWUDQVPLVVLRQERWWOHQHFNV H[SDQVLRQµ
0XFKRIWKHZLQGJHQHUDWHGHOHFWULFLW\
LVGHVWLQHGIRUFLWLHVDORQJWKHUHVRXUFH H,
3DFLÀF VFDUFHFRDVWDOUHJLRQV\HW'RZHUDQG 1  4

7RPHHWH[SORGLQJGHPDQGWKH RWKHUH[SHUWVHVWLPDWHWKDWPRUHWKDQ F -. 
35&JRYHUQPHQWKDVODXQFKHGD
PDMRUFDPSDLJQWREULQJUHQHZDEOH
HQHUJ\SURMHFWVVXFKDVZLQGIDUPV
RQVWUHDP%XWPDQ\RIWKHVHSURMHFWV
DUHORFDWHGLQUHPRWH*DQVXSURYLQFH
LQQRUWKZHVW35&RULQWKH,QQHU
0RQJROLD$XWRQRPRXV5HJLRQ³ZKHUH
WKH$VLDQ'HYHORSPHQW%DQNLVKHOSLQJ
3,&785(&5(',7$)3
RIWKH35&·VQHZO\LQVWDOOHGZLQG F -.%1 
FDSDFLW\KDVQRWEHHQFRQQHFWHGWR
WUDQVPLVVLRQOLQHV7KH35&·VWKUHH
PDMRUJULGVKDYH\HWWREHLQWHJUDWHG
ZKLOHWKHQDWLRQ·VPRVWSRZHUIXO
WUDQVPLVVLRQFRPSDQ\³WKH6WDWH*ULG
&RUSRUDWLRQRI&KLQD³KDVUHVLVWHG
-XO\²6HSWHPEHU 'HYHORSPHQW$VLD
 ,5,9.@:,*<90;@
JRYHUQPHQWSUHVVXUHWRFRQQHFWZLQG
SURMHFWVEHFDXVHUHQHZDEOHHQHUJ\LV
OHVVSURÀWDEOHWKDQPRYLQJHOHFWULFLW\
SURGXFHGE\RLOFRDODQGJDV
5HQHZDEOHHQHUJ\VRXUFHVSURGXFHOHVV
FRQVLVWHQWFRQFHQWUDWLRQVRIHQHUJ\DQG
DUHVSUHDGRYHUDODUJHUDUHDWKDQWKH
PRUHSURÀWDEOHFRQFHQWUDWHGVXSSO\
SURYLGHGE\WUDGLWLRQDOSRZHUSODQWV
´&KLQDKDVHQGHGXSZLWKVWUDQGHG
ZLQGSURMHFWVZLWKQRWUDQVPLVVLRQWR
WDNHLWDQ\ZKHUHµVD\V'DYLG)ULGOH\
DVWDIIVFLHQWLVWIRUWKH&KLQD(QHUJ\
*URXSDWWKH/DZUHQFH%HUNHOH\
1DWLRQDO/DERUDWRU\LQ%HUNHOH\
&DOLIRUQLD´7KHUH·VDPLVPDWFKEHWZHHQ
WKHSDFHRIUHQHZDEOHSRZHULQVWDOODWLRQ
DQGWUDQVPLVVLRQH[SDQVLRQµ
)ULGOH\SUHGLFWVWKHVHPLVPDWFKHV
ZLOOVRRQEHLURQHGRXW)RURQHWKLQJ
WKH35&JRYHUQPHQWLVWHQDFLRXV
DERXWPHHWLQJHQHUJ\WDUJHWVDQG
JULGFRQVWUXFWLRQDQGXSJUDGHVDUH
DPDMRUSDUWRILWVRYHUDOOVWUDWHJ\
$QRWKHUJRDOLVWRVWDELOL]HWKH
WUDQVPLVVLRQRIZLQGHQHUJ\VLQFH
SRZHUÁXFWXDWHVZLWKZLQGVSHHGDQG
WKHUHVXOWLQJLQWHUPLWWHQWHQHUJ\ÁRZV
FDQFDXVHRXWDJHV,QWXUQWKHUHODWLYH
LQGHSHQGHQFHEHWZHHQWKHPDLQ
JULGVLQWKH35&PDNHVVLPXOWDQHRXV
WUDQVPLVVLRQGLIÀFXOW
WUDGLWLRQDOIRVVLOIXHOV´1RWKLQJOLNH
WKLVH[LVWVDQ\ZKHUHLQWKHZRUOGµVD\V
&DLWOLQ3ROORFNDVHQLRUDQDO\VWIRUWKH
$VLD3DFLÀF:LQG(QHUJ\$GYLVRU\DW
(PHUJLQJ(QHUJ\5HVHDUFK´&KLQD
KDVDWUHPHQGRXVFDSDFLW\WROHDSIURJ
WHFKQRORJLFDOO\µ
$FFRUGLQJWR/L\H;LDRGLUHFWRURI
WKH,QVWLWXWHRI(OHFWULFDO(QJLQHHULQJ
RIWKH&KLQHVH$FDGHP\RI6FLHQFHV
VPDUWJULGVDQGUHQHZDEOHHQHUJ\
VKRXOGEHGHYHORSHGWRJHWKHU´OLNH
WZLQEURWKHUVµ
´<RXFDQ·WEXLOG
SURMHFWVLIWKHUHLVQR
PRQH\%XWHYHQLI
PRQH\LVDYDLODEOH\RX
ZRQ·WPRYHIRUZDUG
LI\RXGRQ·WKDYH
VXSSRUWLYHUHJXODWRU\
SROLFLHVDQGLQFHQWLYHV
LQSODFHVRSHRSOHZKR
LQYHVWVWDQGWRPDNHD
SURILWµ
RIKRXVHKROGVLQ,QGRQHVLDKDYH
QRDFFHVVWRHOHFWULFLW\DFFRUGLQJWR
,($5DWKHUWKDQH[SHQVLYHLVODQG²WR²
LVODQGFRQQHFWLRQVLWPDNHVPRUHVHQVH
LQVRPHFDVHVWRIRFXVRQUHPRWHSRZHU
V\VWHPVEDVHGRQK\GURHOHFWULFLW\
ZLQGSRZHURUVRODUSKRWRYROWDLF
SRZHUVD\V'DYLGYRQ+LSSHODVHQLRU
DVVRFLDWHDWWKH1DXWLOXV,QVWLWXWHD
UHVHDUFKFHQWHUEDVHGLQ6DQ)UDQFLVFR
&DOLIRUQLDWKDWIRFXVHVRQHQHUJ\DQG
VHFXULW\LVVXHVLQWKH$VLD3DFLÀF
UHJLRQ
/267,175$160,66,21
,Q,QGLDRIKRXVHKROGVVWLOOODFN
HOHFWULFLW\DVWXEERUQIDFWWKDWPDNHV
WKHJRYHUQPHQW·VSOHGJHWRDFKLHYH
XQLYHUVDOHOHFWULÀFDWLRQE\VHHP
XQUHDOLVWLF´,Q,QGLDWKHVKRUWDJHV
DUHPRUHRIDJHQHUDWLRQSUREOHPµ
H[SODLQV7LP&KDUOWRQSXEOLVKHURI
$VLDQ3RZHUPDJD]LQH´7KH\KDYH
\HDUWDUJHWVEXWXVXDOO\WKH\DUHRQO\
PHHWLQJKDOIRIWKHQHZGHPDQGµ
<HWDVXEVWDQWLDOVKDUHRIWKHSRZHU
,QGLDPDQDJHVWRSURGXFHLVORVWLQ
WUDQVPLVVLRQDQGGLVWULEXWLRQ,QGLD
KDVEHHQXQDEOHWRFREEOHWRJHWKHU
DFRKHUHQWQDWLRQZLGHJULGLQSDUW
EHFDXVHHDFKRIWKHFRXQWU\·V
VWDWHVFRQWUROVLWVRZQHOHFWULFLW\
 !"#""$
7KH35&LVSODQQLQJWRFRQVWUXFW
"##%&'() ERDUGLQFKDUJHRIORFDOWUDQVPLVVLRQ
WZR+9'&OLQHVZKLFKDUHPRUH ""
" DQGGLVWULEXWLRQ0DQ\RIWKHVHVWDWH
FRVWO\WREXLOGWKDQFRQYHQWLRQDOOLQHV
FDUU\LQJDOWHUQDWLQJFXUUHQWEXWDUHD
FKHDSHUZD\WRPRYHHOHFWULFLW\RYHU
ORQJGLVWDQFHVZLWKORZHUSRZHUORVVHV
7KHQHZOLQHVZLOOEHSDUWRIDVPDUW
JULGZKLFKZLOOXVHDGYDQFHGFRQWURO
VRIWZDUHDQG+9'&WUDQVPLVVLRQWR
OLQNLVRODWHGJULGVDQGPRYHHQHUJ\
SURGXFHGE\VRODUZLQGZDWHUDQG
'HYHORSPHQW$VLD -XO\²6HSWHPEHU
7KH35&·VSURJUHVVFRQWUDVWVVKDUSO\
ZLWKVRPHRIWKHGHOD\VDQGGHDGHQGV
H[SHULHQFHGE\RWKHU$VLDQFRXQWULHV
DWWHPSWLQJWREXLOGQDWLRQZLGHJULGV
,QGRQHVLDDQGWKH3KLOLSSLQHVIRU
H[DPSOHPXVWGHOLYHUHOHFWULFLW\WR
WKRXVDQGVRIGLVSHUVHGLVODQGVVRPH
ZLWKUHODWLYHO\IHZLQKDELWDQWV$ERXW
FRPSDQLHVDUHQHDUEDQNUXSWF\GXHWR
SLOIHUDJH
3,&785(&5(',7,0$*(6285&(
,QGLDUDQNVÀUVWLQWKHZRUOGLQ
SRZHUWKHIWWKURXJKVXFKVFKHPHVDV
PHWHUWDPSHULQJLOOHJDOFRQQHFWLRQV
DQGELOOLQJLUUHJXODULWLHV,QWKHVOXPV
RI1HZ'HOKLDQGRWKHUELJFLWLHV
SLUDWHGFRQQHFWLRQVDUHSODLQO\YLVLEOH
LQWKHVQDUOVRIZLUHVSURWUXGLQJIURP
ZZZGHYHORSPHQWDVLD
SRZHUS\ORQV%\VRPHDFFRXQWV DUHKLQGHULQJSURJUHVVµVD\V3HWHU
DQ\ZKHUHEHWZHHQRQHWKLUGDQG
Energy illustrated 0HLVHQIRXQGHUDQGSUHVLGHQWRI
RQHKDOIRIWKHQDWLRQ·VHOHFWULFLW\ WKH*OREDO(QHUJ\1HWZRUN,QVWLWXWH
FRQVXPSWLRQLVXQSDLG 1 kilowatt = EDVHGLQ6DQ'LHJR&DOLIRUQLD0HLVHQ
$:RUOG%DQNUHSRUWHVWLPDWHV KDVORQJSURPRWHGDQRYHUODQGDQG
WKDWDQQXDOHOHFWULFLW\WKHIWHTXDOHG 100 100 100 100 100 XQGHUZDWHUOLQNEHWZHHQWKH5XVVLDQ
watts watts watts watts watts
ELOOLRQRUDERXWRI,QGLD·V )HGHUDWLRQSDUWVRIWKH35&WKH
JURVVGRPHVWLFSURGXFW7KHSLOIHULQJ 'HPRFUDWLF3HRSOH·V5HSXEOLFRI.RUHD
FUHDWHVKDYRFIRUJULGVEHFDXVHWKH 100 100 100 100 100 WKH5HSXEOLFRI.RUHDDQG-DSDQ´,W
LOOHJDOFRQQHFWLRQVIXUWKHUERRVW watts watts watts watts watts
ZRXOGEHDORRSEHWZHHQÀYHFRXQWULHV
GHPDQGZKLFKRIWHQRXWVWULSVVXSSO\ DQGLWZRXOGEHQHÀWWKHPDOOµKHVD\V
7KHSUREOHPLVVRDFXWHWKDWVSHFLDO ´:H·YHEHHQSXVKLQJWKLVSURMHFWIRU
1 kilowatt is equal to ten
SROLFHVWDWLRQVKDYHEHHQVHWXSWR 100-watt light bulbs RYHUDGHFDGHEXW,FDQ·WVD\WKDWLW·V
GHDOVSHFLÀFDOO\ZLWKSRZHUWKHIW PRYHGIRUZDUGPXFKDWDOOµ
DQGSROLWLFLDQVDUHFRQVLGHULQJOLIH
VHQWHQFHVIRUSHRSOHFRQYLFWHGRI
1,000 = 1 %XW+DUWOH\WKH5LFH8QLYHUVLW\
SURIHVVRUVD\VWKDWLQPDQ\FDVHVLW
kilowatts megawatt
VWHDOLQJSRZHU PDNHVPRUHVHQVHIRU$VLDQQDWLRQV
$QDO\VWVVD\RXWVLGHLQYHVWRUV WRLPSRUWQDWXUDOJDVRURWKHUIXHOVWR
FRXOGSDUWQHUZLWKVWDWHUXQ
1 megawatt = SURGXFHSRZHUDWKRPH´:KHQWKHUH
XWLOLW\FRPSDQLHVWRPDNHH[LVWLQJ DUHSROLWLFDOWHQVLRQVJDVLVOHVVULVN\µ
100 100 100
WUDQVPLVVLRQOLQHVPRUHHIÀFLHQWDQG homes homes homes +DUWOH\VD\V´,I\RXUJDVVXSSO\JHWV
WRXSJUDGHDQGGHYHORSVPDUWJULGV FXWRII\RXFDQPDNHHOHFWULFLW\LQ
%XWIRUHLJQFRPSDQLHVDUHZDU\RIWKHIW 100 100 100 100 RWKHUZD\V%XWLI\RXDUHLPSRUWLQJ
homes homes homes homes
DQGFRUUXSWLRQ6XEVLGLHVFDQOHDGWR HOHFWULFLW\DQGWKDWJHWVFXWRII\RX
HOHFWULFLW\EHLQJVROGIRUOHVVWKDQWKH 100 100 100 KDYHEODFNRXWVµ
homes homes homes
FRVWRIJHQHUDWLRQ$QGHYHQWKRXJK 7KHUHDUHDIHZLQWHUFRQQHFWLRQV
DWUHQGH[LVWVWRZDUGSULYDWL]LQJ 1 megawatt can power roughly ,QGLD·VSRZHUJULGLVLQWHUFRQQHFWHG
700 to 1,000 homes
XWLOLW\FRPSDQLHVLQSDUWVRI$VLD ZLWKWKHJULGVLQ1HSDODQG%KXWDQ
SULYDWHÀUPVFDQRQO\EHPLQRULW\ ,QGLDDQG6UL/DQNDKDYHDJUHHGWR
VKDUHKROGHUV 1,000 = 1 EXLOGDNLORPHWHUORQJXQGHUZDWHU
´<RXFDQ·WEXLOGSURMHFWVLIWKHUHLV megawatts gigawatt +9'&FDEOHWRFRQQHFWWKHWZR
QRPRQH\µVD\V'RZHURI(PHUJLQJ FRXQWULHV·SRZHUJULGVE\7KH
(QHUJ\5HVHDUFK´%XWHYHQLIPRQH\LV 1 gigawatt = 0HNRQJ5LYHUJLYHVWKH/DR3HRSOH·V
DYDLODEOH\RXZRQ·WPRYHIRUZDUGLI 'HPRFUDWLF5HSXEOLFKXJHSRWHQWLDODV
A 1-gigawatt power
\RXGRQ·WKDYHVXSSRUWLYHUHJXODWRU\ plant typically can DQH[SRUWHURIK\GURHOHFWULFSRZHUDQG
SROLFLHVDQGLQFHQWLYHVLQSODFHVR supply roughly WKHFRXQWU\KDVEHHQVHOOLQJHOHFWULFLW\
SHRSOHZKRLQYHVWVWDQGWRPDNHD 1 700,000 to
1 million homes
WR7KDLODQG%XWVRIDU$VLDODJVIDU
SURÀWµ gigawatt EHKLQG1RUWK$PHULFD(XURSHDQG
$QRWKHUSRWHQWLDOVROXWLRQLVWREX\ WKHQDWLRQVRIWKHIRUPHU6RYLHW8QLRQ
DQGVHOOHOHFWULFLW\IURPQHLJKERULQJ LQWKHFRQVWUXFWLRQRIFURVVERUGHU
World marketed energy use
FRXQWULHV%XWWKHUHKDVEHHQOLWWOH V\QFKURQRXVJULGV
by fuel type
HIIRUWWRLQWHUFRQQHFWHOHFWULFLW\JULGV (QHUJ\WUDGLQJ´LVIDLUO\KLJK
quadrillion Btu
SDUWO\EHFDXVHFRXQWULHVIDFHVR 250 RQWKHOLVWRILVVXHVWKDWQHHGWREH
PDQ\WUDQVPLVVLRQDQGGLVWULEXWLRQ 200
liquids DGGUHVVHGµVD\V2VWRMLFRIWKH:RUOG
FKDOOHQJHVDWKRPH,QDGGLWLRQ 150
%DQN´7KHUHDUHORWVRIRSSRUWXQLWLHV
coal
UHJLRQDOSROLWLFDOWHQVLRQVGLIIHUHQFHV natural gas IRUWUDGHLQHOHFWULFLW\EXWWKHOHYHOV
100
LQWKHTXDOLW\RIJULGVDQGGLVSXWHV renewables RIH[FKDQJHDUHODJJLQJIDUEHKLQG
nuclear
50
RYHUKRZWRSD\IRUELODWHUDOSURMHFWV RWKHUUHJLRQVRIWKHZRUOGWKDWKDYH
0
KDYHVW\PLHGDWWHPSWVDWFURVVERUGHU 1995 2005 2015 2025 2035 GHYHORSHGMRLQWUHVSRQVHVWRPHHWWKHLU
2007
HOHFWULFLW\WUDQVPLVVLRQ HQHUJ\QHHGV%XWLQ$VLDGHYHORSPHQW
Sources: www.eia.doe.gov ; www.unc.edu
´0DQ\RIWKHVHSURMHFWVZRXOGEH RIQDWLRQDOJULGVLVVWLOODWWKHWRSRIWKH
PXWXDOO\EHQHÀFLDOEXWROGULYDOULHV 0012',3490I-F1I8FF%$F,45J9 DJHQGDµQ

ZZZGHYHORSPHQWDVLD -XO\²6HSWHPEHU 'HYHORSPHQW$VLD

 ,5,9.@:,*<90;@

2OG
.LQJ
&RDO 7KRXJKFRQWURYHUVLDOWKLVLQH[SHQVLYH
DQGDEXQGDQWUHVRXUFHIXHOV$VLDâVJURZWK

%<%UXFH+HLOEXWK

3,&785(&5(',7(<(35(661(:6

'HYHORSPHQW$VLD -XO\²6HSWHPEHU ZZZGHYHORSPHQWDVLD

 ,
QSDUWVRI6KDQ[LQRUWKHDVWHUQ $JHQF\IRU,QWHUQDWLRQDO'HYHORSPHQW $VLDDOEHLWDWVORZHUUDWHV(QHUJ\
3HRSOH·V5HSXEOLFRI&KLQD35&
EODFNSDUWLFOHVFRORUWKHDLUDQG
WKHODQGVFDSHLVFRDWHGZLWKÀQH
FDUERQGXVW&KXQNVRIFRDOOLHEHVLGH
WKHURDGVOHDGLQJWRORFDOFROOLHULHV
7KHSROOXWLRQLVHVSHFLDOO\EDGLQWKH
86$,'(&2$VLD&OHDQ
'HYHORSPHQWDQG&OLPDWH3URJUDP
GLVFXVVLRQSDSHU$UHFHQWUHSRUWIURP
,QGLDFRQÀUPVWKDWFRDOEDVHGSRZHU
SODQWVHPLWKXJHTXDQWLWLHVRIÁ\
DVKDÀQHSRWHQWLDOO\WR[LFDLUERUQH
KXQJU\%DQJODGHVKUHFHQWO\VLJQHGD
ELOOLRQGHDOZLWK,QGLDWREXLOG
WZRFRDOÀUHGSODQWVLQLWV6RXWK
+8*(5(6(59(6
$VLDLVQRWUXQQLQJRXWRIFRDO³
6KDQ[LFLW\RI/LQIHQZKHUHPLQHV
DQGELOOLRQVRIWRQVRISURYHQUHVHUYHV
DFFRXQWIRUKDOIRIWKHSURYLQFH·VFRDO
SURGXFWLRQ
,QHYLWDEO\LQVXFKSODFHVSROOXWLRQ
SRZGHUVXOIXUGLR[LGHDQGWR[LF
PHWDOVOLNHPHUFXU\
7KHKXQJHUIRUFRDOLVPRVWHYLGHQWLQ
WKHZRUOG·VPRVWSRSXORXVQDWLRQV³WKH
35&DQG,QGLD7KH35&LVWKHIDVWHVW
\HW+XJHSURYHQUHVHUYHVH[LVW
FRQFHQWUDWHGLQDIHZFRXQWULHV
$XVWUDOLDWKH35&,QGLDWKH5XVVLDQ
)HGHUDWLRQ6RXWK$IULFDDQGWKH
8QLWHG6WDWHVKROGRIWKHKDUG
IURPFRDOPLQLQJKDVEHHQWLHGWR JURZLQJFRDOPDUNHWLQWKHZRUOG FRDODQWKUDFLWHDQGELWXPLQRXVFRDO
DSSDOOLQJKHDOWKSUREOHPV,QWRZQV UHVSRQVLEOHIRURIJOREDOGHPDQG UHVHUYHVDFFRUGLQJWRDUHSRUWE\
OLNH*DRMLDJDXLWKDVEHHQOLQNHGWRD $UHFHQWUHSRUWE\WKH0DVVDFKXVHWWV WKH(XURSHDQ&RPPLVVLRQ·V,QVWLWXWH
KLJKQXPEHURIELUWKGHIHFWVLQFOXGLQJ ,QVWLWXWHRI7HFKQRORJ\0,7FRQÀUPV IRU(QHUJ\
DGGLWLRQDOÀQJHUVDQGWRHVFOHIW WKDWWKH35&LVFRQVWUXFWLQJWKH +RZHYHUWKHVHDUHEHLQJGHSOHWHG
SDODWHVFRQJHQLWDOKHDUWGLVHDVHDQG
PHQWDOUHWDUGDWLRQDFFRUGLQJWRPHGLD
DQGFRDOLQGXVWU\UHSRUWV
6KDQ[LSURYLQFHSHUIHFWO\UHSUHVHQWV
WKHFRQXQGUXPRIFRDO$VLDORYHV
FRDOLWVWLJHUHFRQRPLHVKDYHDQ
LQVDWLDEOHKXQJHUIRULWLQRUGHU
WRJHQHUDWHSRZHUIRUWKHUHJLRQ·V
ERRPLQJPDQXIDFWXULQJLQGXVWULHVDQG
H[SDQGLQJPLGGOHFODVV$WWKHVDPH
WLPHWKHPLQLQJDQGFRQVXPSWLRQRI
FRDOLVFDXVLQJSUREOHPVRQDPDVVLYH
VFDOHIURPUDPSDQWSROOXWLRQWRRXW
RIFRQWUROJUHHQKRXVHJDVHPLVVLRQV
´7KH>FRDOSROOXWLRQ@SLFWXUHLVJULP
LQPDQ\SDUWVRIGHYHORSLQJ$VLDµVD\V
%ULDQ5LFNHWWVD3DULVEDVHGDQDO\VWZLWK
HTXLYDOHQWRIWZRPHJDZDWW0:
FRDOSRZHUSODQWVHYHU\ZHHN7RSXWLW
LQSHUVSHFWLYHWKDW·VHQRXJKSRZHUWR
UXQDERXWPLOOLRQPRUHZDWWOLJKW
EXOEVDURXQGWKHFORFNHYHU\ZHHN
7KHVWRU\RISRZHUSODQW
SUROLIHUDWLRQLVEHLQJUHSHDWHGDFURVV
+27&2002',7<$PDQGHOLYHUV
EULFNVRIFRDORQDÁDWEHGWULF\FOHWR
QHLJKERUKRRGVLQ%HLMLQJLQZLQWHU7KUHH
GHFDGHVRIHFRQRPLFUHIRUPDQGJURZWK
KDYHEURXJKWDERXWSURIRXQGFKDQJHV
LQWKH3HRSOHҋV5HSXEOLFRI&KLQDOLIWLQJ
WHQVRIPLOOLRQVRXWRISRYHUW\EXWWKH
FRXQWU\ҋVUHOLDQFHRQFRDOWRHQVXUH
HFRQRPLFJURZWKPDNHVSROOXWLRQ
TXLFNO\DVGHPDQGRXWVWULSVVXSSO\
,QGLDH[SHFWVWREHVKRUWE\PLOOLRQ
WRQVSHU\HDUZLWKLQ\HDUV7KH
35&·VFRQVXPSWLRQDOUHDG\RXWVWULSV
SURGXFWLRQ7KLV\HDUDQLQGXVWU\
UHSRUWSUHGLFWVWKH35&·VFRDORXWSXW
ZLOOLQFUHDVH²RYHU´7KH
QXPEHUVFRPLQJRXWRI&KLQDDUH
VFDU\µVD\VWKH,($·V5LFNHWWV
6RZLOO$VLD·VDLULQHYLWDEO\EHFRPH
WRRGLUW\WREUHDWKHZKLOHJOREDO
ZDUPLQJXQOHDVKHVXQLPDJLQDEOH
HQYLURQPHQWDOGLVDVWHUVDVVRPHIHDU"
+DSSLO\WKLVVHHPVXQOLNHO\:KLOH
WKHUHDUHQRSDQDFHDVYLDEOHFRVW
HIIHFWLYHVWHSVWRLQFUHDVHWKHHIÀFLHQF\
RIFRDOFRPEXVWLRQDQGUHGXFH
WKH,QWHUQDWLRQDO(QHUJ\$JHQF\,($ FRQWUROGLIÀFXOW SROOXWDQWVDOUHDG\H[LVW
7KHVHSUREOHPVZLOODOPRVWFHUWDLQO\JHW
ZRUVHEHIRUHWKH\JHWEHWWHU
$WSUHVHQW$VLDFRQVXPHVDERXW
ELOOLRQWRQVRIFRDOSHU\HDUDFFRUGLQJ
WR*HRII&OHDUKHDGRI&RPPRGLWLHV²
$VLDDW$1=%DQNLQJ*URXS
/LPLWHGDQGLWVXVHLQ$VLDLVULVLQJ
H[SRQHQWLDOO\%\WKHEXUQLQJ
RIFRDOWRPHHW$VLDQHQHUJ\GHPDQG
LVH[SHFWHGWRLQFUHDVHIRXUIROG
UHVXOWLQJLQELOOLRQWRQVRIFDUERQ
GLR[LGH&2EHLQJHPLWWHGLQWRWKH
DWPRVSKHUHHYHU\\HDU
3,&785(&5(',7$)3

,QDGGLWLRQWRFDUERQHPLVVLRQV
WKHEXUQLQJRIFRDOLVDVVRFLDWHG
ZLWK´VLJQLÀFDQWORFDODQGJOREDO
SROOXWDQWVµQRWHVD8QLWHG6WDWHV

ZZZGHYHORSPHQWDVLD -XO\²6HSWHPEHU 'HYHORSPHQW$VLD

 ,5,9.@:,*<90;@

025(()),&,(1732:(567$7,216 RIQHZVDQDO\VLVDQGGDWDRQWKH 816(77/,1*'867:RUNHUVXQORDGFRDO

2IWKHRSWLRQVLGHQWLÀHGE\WKH LQWHUQDWLRQDOFRDOLQGXVWU\ SRZGHURQWKHRXWVNLUWVRI+\GHUDEDG
86$,'SDSHURQHKROGVWKHJUHDWHVW ,QGLD$UHFHQWUHSRUWIURP,QGLDFRQÀUPV
PHGLXPWHUPSRWHQWLDOWRUHGXFH &/($1(5&2$/ WKDWFRDOEDVHGSRZHUSODQWVHPLWKXJH
HPLVVLRQVWKHXVHRIWHFKQRORJ\WR $VQLJKWIDOOVRYHUWKH1RUWK6HDWKH TXDQWLWLHVRIÁ\DVKDÀQHSRWHQWLDOO\
PDNHFRPEXVWLRQFOHDQHUDQGLQFUHDVH
WKHHIÀFLHQF\RIFRDOSRZHUHGSODQWV
7KHVHWHFKQRORJLHVFRXOGVODVK
HPLVVLRQVE\ELOOLRQWRQVSHU\HDULW
FRQFOXGHV
3DUDGR[LFDOO\WKH35&KDVEHHQ
OHDGLQJE\H[DPSOHLQWKHODVWWZR
\HDUVE\EXLOGLQJPRUHHIÀFLHQWDQG
OHVVSROOXWLQJFRDOSRZHUSODQWV
WRZHULQJ6OHLSQHUQDWXUDOJDVSODWIRUP
DQGÁDPHVWDFNVNLORPHWHUVZHVW
RI6WDYDQJHU1RUZD\DUHDEOD]HZLWK
OLJKW7KHPDLQSODWIRUPUHVHPEOHVDQ
DSDUWPHQWEORFNVHWLQWKHPLGGOHRI
WKHRFHDQ
+HUHVLQFH1RUZHJLDQ
FRPSDQ\6WDWRLOKDVEHHQLPSOHPHQWLQJ
IXOOVFDOHFDUERQFDSWXUHDQGVWRUDJH
WR[LFDLUERUQHSRZGHUVXOIXUGLR[LGH
DQGWR[LFPHWDOVVXFKDVPHUFXU\
VRRQDV/DVW1RYHPEHU1REXR
7DQDNDWKHH[HFXWLYHGLUHFWRURIWKH
,($WROGUHSRUWHUVLQ&RSHQKDJHQWKDW
&&6ZDVDGYDQFLQJ
´7HFKQRORJLFDOLQQRYDWLRQLV
KDSSHQLQJWKHFRVWLVFRPLQJPXFK
)RULQVWDQFHWKH+XDQHQJ &&6LQMHFWLQJPLOOLRQWRQVRI&2 ORZHUVR,WKLQNWKHUHLVDIXWXUHIRU
0:´XOWUDVXSHUFULWLFDOµRSHUDWLQJ SHU\HDULQWRGHHSVDOLQHDTXLIHUV WKLVµ7DQDNDVD\V+HDGGVWKDWIRU&&6
DERYHWKHWHPSHUDWXUHDQGSUHVVXUH ZLWKRXWOHDNDJH WREHFRPHFRPPHUFLDOO\YLDEOHDFDUERQ
DWZKLFKWKHOLTXLGDQGJDVSKDVHV 7KHHQJLQHHULQJV\VWHPVUHPRYH SULFH³WKHFRVWRISROOXWLRQWREHOHYLHG
RIZDWHUFRH[LVWFRDOSRZHUVWDWLRQ
XQLWLQ<XKXDQKDVGHYHORSHGXQLTXH
WHFKQRORJLHVWRLQFUHDVHWKHUPDO
HIÀFLHQF\WKDWRWKHUFRXQWULHVFRXOG
VHQVLEO\DGRSW
7KH35&LVQRZEXLOGLQJDURXQG
PRUHVLPLODUSODQWVDQGLV
DFFXPXODWLQJGHVLJQDQGFRQVWUXFWLRQ
H[SHUWLVH´7KHVH$VLDQSRZHU
JHQHUDWRUVDUHPXFKPXFKPRUH
HIÀFLHQWWKDQWKHROGJHULDWULFVWDWLRQV
RI(XURSHDQG1RUWK$PHULFDµ
H[SODLQV*HUDUG0F&ORVNH\RIWKH
0F&ORVNH\*URXSDOHDGLQJVRXUFH
'HYHORSPHQW$VLD -XO\²6HSWHPEHU
&2IURPWKHQDWXUDOJDVDWWKHSRLQW
RIH[WUDFWLRQDQGUHLQMHFWLWLQWRWKH
HDUWKWKXVDYRLGLQJWKHSXQLVKLQJ
1RUZHJLDQ&2WD[
:KLOH6OHLSQHULVQRWDFRDOIDFLOLW\
WKHWHFKQRORJ\LWHPSOR\VLVVLJQLÀFDQW
IRUWKRVHKROGLQJRXWKRSHIRUFOHDQHU
FRDOÀUHGSRZHULQ$VLD$JUHDWGHDO
RIUHVHDUFKDQGGHYHORSPHQWLVEHLQJ
GRQHLQWKLVDUHDHVSHFLDOO\LQUHODWLRQ
WR&&6
,QÁXHQWLDOYRLFHVEHOLHYHWKLVNLQG
RIWHFKQRORJ\ZLOOEHFRPPHUFLDOO\
DYDLODEOHIRUFRDOÀUHGSRZHUDV
XQGHUHPLVVLRQVWUDGLQJVFKHPHV³RI
DWRQZDVQHHGHGE\
+23()257+()8785(
7KRXJKFRQWURYHUVLDO&&6LVWKHPRVW
SURPLVLQJWHFKQRORJ\IRUFOHDQFRDO
,WLQYROYHVWUDSSLQJ&2IURPÁXHJDV
ZKHQLW·VEXUQHGFRPSUHVVLQJLWLQWR
OLTXLGDQGSLSLQJLWLQWRJHRORJLFDO
IRUPDWLRQVIRUORQJWHUPVWRUDJH
3,&785(&5(',7$)3
6RPHVFLHQWLVWVLQVLVWWKHWHFKQRORJ\
ZLOOQRWZRUNEHFDXVHWKHIXOOFKDLQ
RI&&6SURFHVVHVLVXQWHVWHGRQD
FRPPHUFLDOVFDOH7KHSUREOHPV
ZZZGHYHORSPHQWDVLD
 3803,1*&$5%21',2;,'(81'(5
7+(6($7KH1RUZHJLDQJDVDQG
RLOFRPSDQ\6WDWRLO+\GURKDVEHHQ
LPSOHPHQWLQJIXOOVFDOHFDUERQFDSWXUH
DQGVWRUDJH&&6DWLWV6OHLSQHUJDV
SODWIRUPLQMHFWLQJPLOOLRQWRQVRI
&2SHU\HDULQWRGHHSVDOLQHDTXLIHUV
ZLWKRXWOHDNDJH

EHOLHYHWKHQH[WGHFDGHLVDNH\¶PDNH
RUEUHDN·SHULRGµVD\VWKH,($RQLWV
ZHEVLWH´,IZHGRQRWGHYHORSVHYHUDO
ODUJHVFDOHLQWHJUDWHGGHPRQVWUDWLRQ
SURMHFWVLQWKLVSHULRGLWZLOOEHYHU\
GLIÀFXOWIRUWKHWHFKQRORJ\WRPDNH
DPHDQLQJIXOFRQWULEXWLRQWR&2
UHGXFWLRQHIIRUWVE\µ

&2$/:$6+,1*
0HDQZKLOHRWKHUFOHDQFRDOWHFKQRORJLHV
DUHPDNLQJDGLIIHUHQFH2QHRIWKHVH
FRDOZDVKLQJUHPRYHVXQZDQWHG
Proposals for carbon PLQHUDOVEHIRUHEXUQLQJE\PL[LQJ
4 FUXVKHGFRDOZLWKDOLTXLGDQGDOORZLQJ
capture and storage 3 WKHLPSXULWLHVWRVHSDUDWHDQGVHWWOH
1 6RPHV\VWHPVFRQWUROWKHFRDO
2
2 2 EXUQLWVHOIWRPLQLPL]HHPLVVLRQVRI
VXOIXUGLR[LGHQLWURJHQR[LGHVDQG
3
SDUWLFXODWHV:HWVFUXEEHUVRUÁXHJDV
GHVXOIXUL]DWLRQV\VWHPVUHPRYHVXOIXU
GLR[LGHDPDMRUFDXVHRIDFLGUDLQE\
VSUD\LQJÁXHJDVZLWKOLPHVWRQHDQG
Produced oil
or gas ZDWHU
Injected CO2 $QRWKHUWHFKQLTXHJDVLÀFDWLRQ
Stored CO2
DYRLGVEXUQLQJFRDODOWRJHWKHU,Q
Main options LQWHJUDWHGJDVLÀFDWLRQFRPELQHGF\FOH
1 Storage in depleted oil 2 Pumping into 3 Storage in rock formations 4 Pumping into V\VWHPVVWHDPDQGKRWSUHVVXUL]HG
and gas reservoirs reserves to flush saturated with saline water coal beds to
out oil and gas below 1,000 metres retrieve DLURUR[\JHQFRPELQHZLWKFRDOLQD
(a) offshore, (b) onshore methane UHDFWLRQWKDWIRUFHVFDUERQPROHFXOHV
020708 Sources: IPCC/USDoE
DSDUW7KHUHVXOWLQJV\QJDV³DPL[WXUH
RIFDUERQPRQR[LGHDQGK\GURJHQ³
LQFOXGHFRVWZKLFKZLOOOLNHO\DGG WKH&2WREHYHUDJHFRPSDQLHVWRDGG LVWKHQFOHDQHGDQGEXUQHGLQDJDV
DERXWELOOLRQWRWKHSULFHRIDSRZHU À]]WRWKHLUGULQNV WXUELQHWRPDNHHOHFWULFLW\
SODQWDFFRUGLQJWRD%ULWLVKUHSRUW ,Q$XVWUDOLDWKHFRDOLQGXVWU\
$QGLWZLOOFXWHIÀFLHQF\E\DTXDUWHU LVVXSSRUWLQJDSLORWSURMHFWWR 27+(5(1(5*<6285&(6
+RZHYHUWKH35&·VÀUVWWULDORI GHPRQVWUDWH&2VWRUDJHLQWKH2WZD\ $QRWKHUVROXWLRQWRWKHSUREOHPVSRVHG
FDUERQFDSWXUHIURPEXUQLQJFRDO UHJLRQRI9LFWRULD0RUHWKDQ E\FRDOZLOOLQHYLWDEO\EHORZHPLVVLRQ
LVEHLQJUDWHGDVXFFHVVE\&KLQD WRQVRI&2KDYHEHHQVXFFHVVIXOO\ QXFOHDUSRZHUVD\DVLJQLÀFDQW
3,&785(&5(',7$)3

+XDQHQJ*URXSWKHVWDWHRZQHG VWRUHGXQGHUJURXQG SURSRUWLRQRIHQHUJ\H[SHUWV$VD

HQHUJ\ÀUPUXQQLQJWKHSURMHFWLQ 7KH,($FRQFOXGHVWKDW´DPDMRU %XVLQHVV,QVLJKWVUHSRUWLQWRWKHIXWXUHRI
%HLMLQJ7KHFRPSDQ\XVHVVROYHQWVWR SXVKµLVQRZQHHGHGWRGHYHORSDQG FOHDQFRDODFNQRZOHGJHV´(YHQDWWKH
FDSWXUH&2IURPÁXHJDVHVDQGVHOOV GHPRQVWUDWHWKHWHFKQRORJ\´:H KLJKHVWSULFHQXFOHDU>SRZHU@ZRXOG

ZZZGHYHORSPHQWDVLD -XO\²6HSWHPEHU 'HYHORSPHQW$VLD

 ,5,9.@:,*<90;@!;/,)0.9,(+

WREXVLQHVVDVXVXDOEXWVWLOOZLWK
´7KHHFRQRPLFVRIKDUYHVWLQJIRVVLOIXHOVFKDQJHVDV LQFUHDVHGFRDOXVHUHODWLYHWRLQ
PRVWFDVHVµ
\RXJRGHHSHULQWRPRUHKRVWLOHHQYLURQPHQWV%XWLW·V (TXDOO\FHUWDLQLVWKDWXOWLPDWHO\
DOODEULGJHWRDQHQHUJ\IXWXUHWKDWZLOOEHPXFKPRUH XVHUVZLOOKDYHWRSD\IRUFOHDQHU
HIILFLHQWLQFDUERQWHUPVµ WHFKQRORJLHVOLNH&&6,($·V5LFNHWWV
EHOLHYHV7KH8QLWHG.LQJGRP
+""# 
-$ 
-+"&!&"%#
!



KDVUHFHQWO\SDVVHGOHJLVODWLRQWR
##
DOORZDOHY\RQFRQVXPHUVIRUWKLV
SXUSRVHKHSRLQWVRXW,($KRSHV
FRPSHWHIDYRUDEO\ZLWKDFRDOÀUHG DQGWKHQHHGIRUFOHDQHUSRZHU" WKDW$VLDQFRXQWULHVZLOOIROORZVXLW
SRZHUVWDWLRQZLWKFDUERQFDSWXUHDQG 2EYLRXVO\PXFKZLOOGHSHQGRQ DVJRYHUQPHQWVUHVSRQGWRJURZLQJ
VHTXHVWUDWLRQµ SROLF\FKRLFHVUHODWLQJWRLVVXHVVXFK SUHVVXUHVWRFOHDQXSWKHHQYLURQPHQW
%XWHYHQQXFOHDUSRZHULVQR DVDFDUERQSULFH³DQGWKHUHDUHQR DQGUHGXFHHPLVVLRQV
VXUHÀUHDQVZHUWREDVHORDGSRZHU HDV\DQVZHUV ´5HFRQFLOLDWLRQEHWZHHQWKH
GHPDQGLQ$VLDVD\V5REHUW3DVVH\ :KDWLVFHUWDLQLVWKDWQRPDWWHU FKHDSQHVVRIFRDODQGLWVGLVDGYDQWDJHV
VHQLRUUHVHDUFKDVVRFLDWHDWWKH&HQWUH ZKDWDOWHUQDWLYHV$VLDHPEUDFHVFRDO ZLOOEHGULYHQE\WKHPDUJLQDOFRVWRI
IRU(QHUJ\DQG(QYLURQPHQWDO0DUNHWV XVHZLOOLQFUHDVHXQGHUDQ\UHDGLO\ XVLQJSRZHUIURPFOHDQHUVRXUFHVµ
DWWKH8QLYHUVLW\RI1HZ6RXWK:DOHV IRUHVHHDEOHVFHQDULREHFDXVHGHVSLWH VD\V&OHDURI$1=%DQNLQJ*URXS
7KHPDLQKRSHLVHQHUJ\HIÀFLHQF\ SULFHULVHVRIXSWRLQLWLV /LPLWHG´6XIÀFHWRVD\WKHUHVKRXOG
IROORZHGE\UHQHZDEOHHQHUJ\KHVD\V VWLOOFRVWHIIHFWLYH EHLQFHQWLYHWRGRVRDVDPDWWHURI
$WSUHVHQWKRZHYHUDEHOLHIWKDW $FFRUGLQJWRWKH0,7UHSRUWFRDO XUJHQF\µ
UHQHZDEOHVZLOOFRQWULEXWHVLJQLÀFDQWO\ SURYLGHVXVDEOHHQHUJ\DWDFRVWRI /LNHDOOIRVVLOUHVRXUFHVFRDOLVÀQLWH
WR$VLD·VSRZHUGHPDQGDQ\WLPHVRRQ EHWZHHQDQGSHUPLOOLRQ%ULWLVK DQGVRPHRIWKHVROXWLRQVIRU$VLD·V
PD\EHRYHUO\RSWLPLVWLF$FFRUGLQJWR WKHUPDOXQLWV%WXFRPSDUHGZLWK
WKH0,7VWXG\JHRWKHUPDOVRODUDQG
ZLQGSRZHUPHHWRQO\RIJOREDO
HQHUJ\GHPDQG
81,0$*,1$%/(62/87,216
+RZZLOO$VLDUHFRQFLOHFRDO·V
DEXQGDQFHZLWKFOLPDWHFKDQJH
'HYHORSPHQW$VLD -XO\²6HSWHPEHU
WRSHUPLOOLRQ%WXIRURLODQG
QDWXUDOJDV
´&RDOZLOOFRQWLQXHWREHXVHGWR
PHHW«HQHUJ\QHHGVLQVLJQLÀFDQW
TXDQWLWLHVµVD\VWKHUHSRUW$KLJK&2 0F&ORVNH\´%XWLW·VDOODEULGJHWRDQ
SULFHVFHQDULR´OHDGVWRDVXEVWDQWLDO
UHGXFWLRQLQFRDOXVHLQUHODWLYH
HQHUJ\QHHGVPD\EHXQLPDJLQDEOHDW
3,&785(&5(',7$)3&+,1$;75$
SUHVHQW
´7KHHFRQRPLFVRIKDUYHVWLQJIRVVLO
IXHOVFKDQJHVDV\RXJRGHHSHULQWR
PRUHKRVWLOHHQYLURQPHQWVµVD\V
HQHUJ\IXWXUHWKDWZLOOEHPXFKPRUH
HIÀFLHQWLQFDUERQWHUPVµQ
ZZZGHYHORSPHQWDVLD
 Some solutions for
climate change shine brighter
than others

Climate change threatens us all. Harnessing renewable energy is a great way to

fight it. ADB provides funding to assist solar power projects across Asia. These
facilities generate electricity from sunlight. Provide clean power for tens of
thousands of poor households. And switch Asia on to a low carbon growth path.

ADB. Investing in climate change solutions for Asia and the Pacific.

www.adb.org
 ,5,9.@:,*<90;@

$VLD*RHV1XFOHDU
'ULYHQE\VRDULQJHQHUJ\GHPDQGDPRQJRWKHUIDFWRUV$VLDQFRXQWULHVWRGD\
DUHGULYLQJWKHJOREDOVXUJHLQQXFOHDUSRZHUGHYHORSPHQW
%<:LOOLDP%UDQLJLQ

'HYHORSPHQW$VLD -XO\²6HSWHPEHU ZZZGHYHORSPHQWDVLD

 -
XVWDIHZ\HDUVDJRWKHLGHDRI
EXLOGLQJDQXFOHDUSRZHUSODQW
LQ6LQJDSRUHZDVFRQVLGHUHG
XQWKLQNDEOH:LWKQHDUO\
PLOOLRQSHRSOHOLYLQJRQDQ
LVODQGDURXQGNLORPHWHUVZLGH
6LQJDSRUH·VOHDGHUVYLHZHGWKHLU
FLW\VWDWHDVWRRVPDOODQGFURZGHGWR
VDIHO\DFFRPPRGDWHDQXFOHDUSODQW
7RGD\6LQJDSRUHLVDPRQJPRUH
WKDQFRXQWULHVZRUOGZLGHWKDWDUH
ORRNLQJLQWRLQFOXGLQJQXFOHDUSRZHU
LQWKHLUHQHUJ\SODQV
,ILWWDNHVWKDWVWHSWKHSURVSHURXV
LVODQGQDWLRQPLJKWORRNWRDQRWKHU
QXFOHDUQHZFRPHURIVRUWVWKH
5HSXEOLFRI.RUHDDÁHGJOLQJVXSSOLHU
ZLWKDPELWLRXVSODQVWRFDSWXUHDÀIWK
RIWKHZRUOGPDUNHWIRUQXFOHDUSRZHU
SODQWVRYHUWKHQH[W\HDUV
$WVRPHSRLQWLQGXVWU\DQDO\VWV
VD\WKH.RUHDQVFDQH[SHFWWRFRPSHWH
ZLWKWKH3HRSOH·V5HSXEOLFRI&KLQD
'ULYHQE\DFRPELQDWLRQRIIDFWRUV³
LQFOXGLQJFRQFHUQVDERXWIXWXUH
VXSSOLHVRIIRVVLOIXHOVWKHQHHGWR
FRPEDWFOLPDWHFKDQJHDQGWKHDGYHQW
RIVDIHUVPDOOHUDQGPRUHDGYDQFHG
UHDFWRUV³$VLDQFRXQWULHVWRGD\DUH
OHDGLQJWKHZD\LQDVXUJHRIQXFOHDU
SRZHUGHYHORSPHQW
´3HRSOHZDQWHOHFWULFLW\
WKH\ZDQWHOHFWULFLW\
WKDW·VDIIRUGDEOH
DQGWKH\ZDQWHQHUJ\
VHFXULW\DQGFOHDQDLUµ
³,DQ+RUH/DF\GLUHFWRURISXEOLF
FRPPXQLFDWLRQV:RUOG1XFOHDU
$VVRFLDWLRQ
2IWKHPRUHWKDQQXFOHDUSRZHU
KHDGTXDUWHUV,WZDVRULJLQDOO\GULYHQ
E\-DSDQDQGWKH5HSXEOLFRI.RUHD
5RJQHUVD\VEXW´QRZ&KLQDDQG
,QGLDKDYHWDNHQRYHUµ$GGLQJWR
WKHPRPHQWXPKHVD\VLVUHQHZHG
LQWHUHVWE\FRXQWULHVWKDW´VWHSSHG
DZD\µIURPQXFOHDUSRZHULQWKH
PLGVZKHQWKHHQHUJ\FULVLVRI
WKHSUHYLRXVGHFDGHJDYHZD\WRDQRLO
JOXWDQGFKHDSVXUSOXVFUXGHDOWKRXJK
PDQ\RWKHUFRQWULEXWLQJIDFWRUVKDYH
WREHWDNHQLQWRDFFRXQW$PRQJWKH
FRXQWULHVZLWKQRRSHUDWLQJQXFOHDU
SRZHUSODQWVWKDWDUHQRZWDNLQJ
DKDUGORRNDWWKHWHFKQRORJ\DUH
,QGRQHVLD0DOD\VLDWKH3KLOLSSLQHV
7KDLODQGDQG9LHW1DP5RJQHUDQG
RWKHUH[SHUWVVD\
´1XFOHDUSRZHULVHQMR\LQJJURZLQJ
DFFHSWDQFHDVDVWDEOHDQGFOHDQVRXUFH
RIHQHUJ\WKDWFDQKHOSWRPLWLJDWH
WKHLPSDFWRIFOLPDWHFKDQJHµ,$($
'LUHFWRU*HQHUDO<XNL\D$PDQRVDLGLQ
35&ZKLFKLVUDSLGO\EHFRPLQJ
VHOIVXIÀFLHQWLQQXFOHDUUHDFWRU
GHVLJQDQGFRQVWUXFWLRQDQGLV
H[SHFWHGWRKDYHDQXFOHDUFDSDFLW\
RIDWOHDVWPHJDZDWWVE\
$OUHDG\WKHZRUOG·VVHFRQGODUJHVW
HQHUJ\FRQVXPHU³DIWHUWKH8QLWHG
6WDWHV³DQGIDFLQJDJURZLQJQHHG
WRVXSSO\HOHFWULFLW\WRLWVELOOLRQ
SHRSOHWKH35&KDVQXFOHDUSRZHU
UHDFWRUVLQFRPPHUFLDORSHUDWLRQ
PRUHXQGHUFRQVWUXFWLRQRWKHUV
SODQQHGDQGSURSRVHGDFFRUGLQJ
WRWKH:RUOG1XFOHDU$VVRFLDWLRQ
SODQWVQRZXQGHUFRQVWUXFWLRQ
ZRUOGZLGHDUHEHLQJEXLOWLQ
(DVWDQG6RXWK$VLDWKH:1$VD\V
,QDGGLWLRQLWVD\VWKHUHDUH´ÀUP
SODQVµWREXLOGPRUHDQG´VHULRXV
SURSRVDOVµIRUDQRWKHU7KHUHJLRQ
FXUUHQWO\KDVQXFOHDUSRZHU
UHDFWRUVLQRSHUDWLRQWKHJURXSVD\V
´$VLDLVWKHPDLQUHJLRQLQWKHZRUOG
ZKHUHHOHFWULFLW\JHQHUDWLQJFDSDFLW\
DQGVSHFLÀFDOO\QXFOHDUSRZHULV
JURZLQJVLJQLÀFDQWO\µWKHDVVRFLDWLRQ
VD\VLQLWVODWHVWXSGDWH,WSURMHFWVWKH
JUHDWHVWLQFUHDVHVLQQXFOHDUFDSDFLW\LQ
DVSHHFKRQ0D\WRD8QLWHG1DWLRQV
FRQIHUHQFHLQ1HZ<RUN´0RUHWKDQ
FRXQWULHVDUHFRQVLGHULQJLQWURGXFLQJ
QXFOHDUSRZHUWRJHQHUDWHHOHFWULFLW\
,WLVH[SHFWHGWKDWEHWZHHQDQG
QHZFRXQWULHVZLOOEULQJWKHLUÀUVW
QXFOHDUSRZHUSODQWVRQOLQHE\µ
7KHYHWHUDQ-DSDQHVHGLSORPDWDGGHG
WKDWQXFOHDUSRZHU´PXVWEHDFFHVVLEOH
QRWRQO\IRUGHYHORSHGFRXQWULHVEXW
DOVRIRUGHYHORSLQJFRXQWULHVµ
18&/($5&21675$,176)520
1,0%<727+(´5,1*2)),5(µ
:1$D/RQGRQEDVHGLQWHUQDWLRQDO
RUJDQL]DWLRQWKDWSURPRWHVQXFOHDU
HQHUJ\$QGJLYHQ%HLMLQJ·VVWDWHGJRDO
RIDWRPLFVHOIVXIÀFLHQF\DQDO\VWVVD\
WKH35&PD\VRRQMRLQWKHFRPSHWLWLRQ
WRVHOOQXFOHDUSODQWVDEURDG
%(&20,1*6(/)68)),&,(177KH
3,&785(&5(',7,0$*,1(&+,1$
3HRSOHҋV5HSXEOLFRI&KLQDLVUDSLGO\
EHFRPLQJVHOIVXIÀFLHQWLQQXFOHDU
UHDFWRUGHVLJQDQGFRQVWUXFWLRQ7KH
WKH35&,QGLD-DSDQDQGWKH5HSXEOLF
RI.RUHD
´,W·VJURZLQJYHU\UDSLGO\µ
VD\V:1$·V'LUHFWRURI3XEOLF
&RPPXQLFDWLRQV,DQ+RUH/DF\
´3HRSOHZDQWHOHFWULFLW\WKH\ZDQW
HOHFWULFLW\WKDW·VDIIRUGDEOHDQGWKH\
ZDQWHQHUJ\VHFXULW\DQGFOHDQDLUµ
+DQV+ROJHU5RJQHUKHDGRIWKH
3ODQQLQJDQG(FRQRPLF6WXGLHV6HFWLRQ
RIWKH,QWHUQDWLRQDO$WRPLF(QHUJ\
%XWWKHVHFWRUFRQWLQXHVWRIDFHD
QXPEHURIFRQVWUDLQWV,QVHYHUDO
$VLDQFRXQWULHVWKHUHLVVWURQJSXEOLF
RSSRVLWLRQIURPDGYRFDF\JURXSVRQ
VDIHW\DQGHQYLURQPHQWDOJURXQGV
7KHQWKHUHLVZKDWWKH:1$·V
+RUH/DF\FDOOV´WKH1,0%<LVVXHµ
UHIHUULQJWRWKHDFURQ\PIRU´QRWLQ
P\EDFN\DUGµ7KHVHRSSRQHQWVWDNH
WKHYLHZWKDWDV+RUH/DF\SXWVLW
´\HVZH·GOLNHVRPHPRUHHOHFWULFLW\
4LQVKDQ1XFOHDU3RZHU3ODQWLQ=KHMLDQJ $JHQF\,$($DJUHHV EXWGRQ·WEXLOGWKHSRZHUVWDWLRQ
SURYLQFHEHJDQRSHUDWLRQLQDQG ´7KHJURZWKPRPHQWXPRIQXFOHDU QHDUXVµ,Q-DSDQDQGWKH5HSXEOLFRI
ZDVWKHÀUVWSODQWGHVLJQHGE\ORFDO SRZHULVHYHQPRUHDFFHOHUDWHGLQ .RUHDKHQRWHVWKH1,0%<LVVXHKDV
HQJLQHHUV $VLDµKHVD\VIURPWKH,$($·V9LHQQD DULVHQLQFRQQHFWLRQZLWKVLWHVHOHFWLRQ

ZZZGHYHORSPHQWDVLD -XO\²6HSWHPEHU 'HYHORSPHQW$VLD

 ,5,9.@:,*<90;@

1218.(6*UHHQSHDFHMRLQVDQ
DQWLQXFOHDUJURXSIURP0RURQJ
WRZQLQWKH%DWDDQSHQLQVXODRIWKH
3KLOLSSLQHVLQLQVWDOOLQJSDSHUSLQZKHHOV
RQWKHJDWHRIWKHFRXQWU\ҋV+RXVHRI
5HSUHVHQWDWLYHVLQ0D\6RPH
ODZPDNHUVSURSRVHGWKDWWKHQXFOHDU
SODQWLQ0RURQJZKLFKKDVQHYHUEHHQLQ
RSHUDWLRQEHFRPPLVVLRQHGWRPHHWWKH
FRXQWU\ҋVHQHUJ\QHHGV

.DULZDQXFOHDUSRZHUSODQWLQ-DSDQ·V
1LLJDWD3UHIHFWXUHIRUFLQJDQH[WHQGHG
VKXWGRZQRIWKHZRUOG·VODUJHVW
QXFOHDUJHQHUDWLQJVWDWLRQ
3URWHVWHUVLQ,QGRQHVLDKDYH
SHULRGLFDOO\UDOOLHGDJDLQVWSODQVWR
EXLOGDQXFOHDUSODQWRQWKH0XULD
SHQLQVXODDORQJWKHQRUWKHUQFRDVW
RIFHQWUDO-DYDDQDUHDIHDWXULQJD
ODUJHGRUPDQWYROFDQR$QGLQWKH
3KLOLSSLQHVWKHQHDUE\SUHVHQFHRI
HDUWKTXDNHIDXOWOLQHVDQG0RXQW
IRUQXFOHDUSRZHUSODQWVDQGZDVWH
(DUWKTXDNHVDQGYROFDQRHV³
3LQDWXERZKLFKHUXSWHGLQZHUH
DPRQJWKHIDFWRUVWKDWSURPSWHGWKH
JRYHUQPHQWRI3UHVLGHQW&RUD]RQ
$TXLQRWRPRWKEDOOWKH%DWDDQ1XFOHDU
3RZHU3ODQWLQ
:KLOHVHLVPLFDFWLYLW\LVDIDFWRU
QXFOHDUSRZHUSURSRQHQWVGRQRW
UHJDUGLWDVLQVXUPRXQWDEOH
´<RXQHHGWRPDNHVXUHWKHSODQWV
DUHGHVLJQHGWRZLWKVWDQGKLJKVHLVPLF
OHYHOVµDQGDUHEXLOWRQVROLGEHGURFN
+RUH/DF\VD\V
´7KDWLVDFRVWIDFWRULQWKHHQGµ
5RJQHUVD\V´<RXFDQPDNHDQ\SODQW
HDUWKTXDNHVDIHEXWDWDGGLWLRQDOFRVWµ
&RPELQHGZLWKWKHQXFOHDULQGXVWU\·V
W\SLFDOO\KLJKFRQVWUXFWLRQFRVWV³
URXJKO\ELOOLRQWRELOOLRQIRUDQ
UHSRVLWRULHV
$FFRUGLQJWRWKH,$($·V5RJQHUWKH
1,0%<IDFWRU´LVQRWUHDOO\DQLVVXHµ
IRUFRPPXQLWLHVWKDWKDYHKRVWHG
QXFOHDUSRZHUSODQWVIRUGHFDGHVDQG
KDYHEHQHÀWHGIURPWKHHPSOR\PHQW
WKH\JHQHUDWHDQGWKHWD[HVWKH\
SD\´,W·VXVXDOO\ZKHUHORFDOVKDYH
KDGQRSUHYLRXVH[SRVXUHWRQXFOHDU
SODQWVWKDWWKH1,0%<IDFWRULVDPRUH
GRPLQDQWLVVXHµKHVD\V
'HYHORSPHQW$VLD -XO\²6HSWHPEHU
PDQLIHVWDWLRQVRIWKH3DFLÀF5LP·V
´ULQJRIÀUHµ³SRVHRWKHUFKDOOHQJHV
7KHKRUVHVKRHVKDSHG]RQHKRPH
WRRIWKHZRUOG·VYROFDQRHVDQG
DERXWRILWVODUJHVWHDUWKTXDNHV
LVRIWHQFLWHGE\DQWLQXFOHDUJURXSVDV
([KLELW$LQWKHLUDUJXPHQWVDJDLQVW
EXLOGLQJQXFOHDUSRZHUSODQWVLQ$VLD
7KHULVNVZHUHLOOXVWUDWHGLQ-XO\
ZKHQDPDJQLWXGHRIIVKRUH
HDUWKTXDNHGDPDJHGWKH.DVKLZD]DNL
LQLWLDOPHJDZDWW0:SODQW³WKH
H[WUDH[SHQVHFRXOG´UXOHRXWQXFOHDU
SRZHUµIRUVRPHFRXQWULHV5RJQHUVD\V
%XWDEURDGHUFRQVWUDLQWFRXOGEH
DKXPDQUHVRXUFHVLVVXHDGHDUWK
RIQXFOHDUH[SHUWLVHLQVRPH$VLDQ
FRXQWULHV7KH35&DQG,QGLDKDYH
3,&785(&5(',7$)3
EHHQHGXFDWLQJSHRSOHWREXLOGDQG
RSHUDWHQXFOHDUSRZHUSODQWV´EXW
ZKHWKHUWKLVLVHQRXJKUHPDLQVWREH
VHHQµ5RJQHUVD\V$QGRWKHUQDWLRQV
ZZZGHYHORSPHQWDVLD
H\HLQJQXFOHDUHQHUJ\´FHUWDLQO\
PD\KDYHDPDMRUFDWFKXSFKDOOHQJH
EHIRUHWKHPµ,QGHHGQXFOHDUH[SHUWV
HVWLPDWHWKDWFRXQWULHVZLWKQRH[LVWLQJ
SODQWVQHHGDWOHDVWWR\HDUVWR
EXLOGXSVNLOOVLQVDIHW\DQGFRQWURO
GHÀQHDUHJXODWRU\IUDPHZRUNDQG
HVWDEOLVKOLFHQVLQJSURFHGXUHV
18&/($5*52:7+7+(35&
$1',1',$/($'7+(:$<
&KLHIDPRQJWKRVHLVWKH35&ZKHUH
HOHFWULFLW\GHPDQGKDVEHHQJURZLQJ
DWPRUHWKDQD\HDU(OHFWULFLW\
JHQHUDWHGE\QXFOHDUSODQWVFXUUHQWO\
DFFRXQWVIRURQO\DERXWRIWKHWRWDO
$WOHDVWFRPHVIURPFRDO7KH
UHVXOWLQJDLUSROOXWLRQFDXVHVHFRQRPLF
ORVVHVDPRXQWLQJWRQHDUO\RIJURVV
GRPHVWLFSURGXFWWKH:RUOG%DQN
HVWLPDWHVDQGKDVKHOSHGPDNHWKH
FRXQWU\WKHZRUOG·VODUJHVWHPLWWHURI
JUHHQKRXVHJDVHV
%HLMLQJSODQVWREXLOGDGGLWLRQDO
UHDFWRUVLQFOXGLQJVRPHRIWKHZRUOG·V
PRVWDGYDQFHGWRLQFUHDVHQXFOHDU
FDSDFLW\PRUHWKDQVL[IROGWRDWOHDVW
0:E\IROORZHGE\
DQRWKHUVSXUWWRDSURMHFWHG
0:E\
,QDGGLWLRQDFFRUGLQJWRWKH
$QXFOHDUFRRSHUDWLRQDJUHHPHQW
ZLWKWKH86FKDQJHVWKDWUDLVLQJWKH
SURVSHFWRIIRUHLJQLQYROYHPHQWLQ
SURMHFWVWRJHQHUDWHDVPXFKDV
0:RIQXFOHDUSRZHUE\$QGRQ
0D\WKHLQGXVWU\UHFHLYHGDIXUWKHU
ERRVWZKHQDFRQWURYHUVLDOODZZDV
LQWURGXFHGLQSDUOLDPHQWWRHVWDEOLVK
DOLDELOLW\FRPSHQVDWLRQV\VWHPIRU
QXFOHDUDFFLGHQWV³DYLWDOVWHSWRIXOO\
DFWLYDWHWKH86²,QGLDQDFFRUGDQGDOORZ
$PHULFDQFRPSDQLHVWREXLOGUHDFWRUV
LQ,QGLD
,16(28/$0%,7,2863/$16
,QWKH5HSXEOLFRI.RUHDUHDFWRUV
FXUUHQWO\SURGXFHDERXW0:RI
HOHFWULFLW\PHHWLQJDOPRVWRIWKH
FRXQWU\·VQHHGV6L[RWKHUVDUHXQGHU
FRQVWUXFWLRQDQGVL[PRUHDUHSODQQHG
DVSDUWRIDSURJUDPWRUDLVHQXFOHDU·V
VKDUHRIHOHFWULFLW\JHQHUDWLRQWRQHDUO\
E\
%XW6HRXO·VSODQVDUHHYHQPRUH
DPELWLRXVWKDQWKDW:RUNLQJZLWK86
FRPSDQLHVWKH.RUHDQVGHYHORSHGWKH
0:235UHDFWRUZKLFK
LVORFDOO\PDGHDQGDQHZHU
PRGHOEDVHGRQLWWKH$35,Q
'HFHPEHUDFRQVRUWLXPOHGE\
WKH.RUHD(OHFWULF3RZHU&RUSRUDWLRQ
,QGRQHVLDDQG9LHW1DPDVSRVVLEOH
PDUNHWVIRULWV235UHDFWRUV
6287+($67$6,$18&/($5·6
1(:0$5.(7
9LHW1DPSODQVWRLQVWDOOWZRUHDFWRUV
WRWDOLQJ0:LQVRXWKHDVWHUQ
1LQK7KXDQSURYLQFHE\
IROORZHGE\WZRPRUHRIWKHVDPHVL]H
LQDQRWKHUSDUWRIWKHSURYLQFH+D
1RL·VSODQVFDOOIRUQXFOHDUSODQWVWKDW
ZLOOSURYLGHDWRWDORI0:E\

$PRQJ6RXWKHDVW$VLDQFRXQWULHV
9LHW1DPLVEHOLHYHGWRKDYHWKH
ÀUPHVWQXFOHDUSRZHUSODQV´5LJKW
QRZ9LHW1DPDSSHDUVPRVWDGYDQFHG
LQWKHLUQXFOHDUSRZHUGHYHORSPHQW
SODQVµ5RJQHUVD\V
,QGRQHVLDZKHUHQXFOHDUSODQV
KDYHHEEHGDQGÁRZHGIRUPRUHWKDQ
GHFDGHVQRZVD\VLWKDVELOOLRQ
EXGJHWHGIRUIRXUSODQWVWRWDOLQJ
0:WRFRPHRQVWUHDPE\$Q
,QGRQHVLDQHQHUJ\FRPSDQ\VLJQHG
DPHPRUDQGXPRIXQGHUVWDQGLQJ
ZLWKD.RUHDQFRQVRUWLXPLQIRU
DIHDVLELOLW\VWXG\RQEXLOGLQJWZR
0:SODQWVXQGHUDJRYHUQPHQW
SODQWRKDYHQXFOHDUSRZHUVXSSO\
RIWKHFRXQWU\·VUDSLGO\JURZLQJ
:1$´&KLQDLVUDSLGO\EHFRPLQJ
VHOIVXIÀFLHQWLQUHDFWRUGHVLJQDQG
FRQVWUXFWLRQDVZHOODVRWKHUDVSHFWVRI
WKHIXHOF\FOHµ
,Q-DSDQZKLFKFXUUHQWO\KDV
QXFOHDUSRZHUUHDFWRUVRSHUDWLQJ
XQGHUFRQVWUXFWLRQDQGSODQQHGWKH
QXFOHDUVKDUHRIHOHFWULFLW\JHQHUDWLQJ
FDSDFLW\LVSURMHFWHGWRLQFUHDVHIURP
DERXWWRGD\WRE\
,QGLDZLWKUHDFWRUVFXUUHQWO\
VXSSO\LQJQHDUO\RIWKHFRXQWU\·V
HOHFWULFLW\KDVPRUHUHDFWRUVXQGHU
FRQVWUXFWLRQDQGÀUPSODQVWREXLOG
DQRWKHU8SWRQRZLWKDVKDGWR
EHFRPSOHWHO\VHOIVXIÀFLHQW%HFDXVH
LWWHVWHGDQDWRPLFERPELQDQG
UHIXVHGWRVLJQWKHQXFOHDU1RQ
3UROLIHUDWLRQ7UHDW\,QGLDZDVEDUUHG
IURPDFFHVVWRLQWHUQDWLRQDOQXFOHDU
WHFKQRORJ\DQGIXHOVXSSOLHV
ZZZGHYHORSPHQWDVLD
.(3&2EHDWRXWD)UHQFKJURXS
DQGD86²-DSDQHVHFRQVRUWLXPIRUD
KXJHFRQWUDFWZRUWKDERXWELOOLRQ
WREXLOGIRXU$35XQLWVLQWKH
8QLWHG$UDE(PLUDWHV.(3&2SODQVWR
KDYHWKHÀUVWUHDFWRUXSDQGUXQQLQJ
E\ZLWKWKHUHVWRQVWUHDPE\
DQGH[SHFWVWRHDUQDQDGGLWLRQDO
ELOOLRQE\MRLQWO\RSHUDWLQJWKHP
IRU\HDUV
´7KH.RUHDQVDUHH[WUHPHO\
RXWJRLQJWKHVHGD\VµWKH,$($·V
5RJQHUVD\V´7KH\UHDOO\DUHRQHRI
WKHWH[WERRNH[DPSOHVRIDFRXQWU\WKDW
VWDUWHGZLWKQRQXFOHDULQIUDVWUXFWXUH
\HDUVDJRDQGQRZKDVPDVWHUHG
QXFOHDUWHFKQRORJ\7KH\·YH
DQQRXQFHGWKH\ZDQWWRFRQTXHU
RIWKHZRUOGPDUNHWµ
&ORVHUWRKRPHWKH5HSXEOLFRI
.RUHDVHHPVWRKDYHLWVVLJKWVVHWRQ
HOHFWULFLW\GHPDQGE\%XW
DQDO\VWVVD\WKLVWLPHWDEOHPD\KDYH
VOLSSHG
,QWKH3KLOLSSLQHVDQ,$($UHYLHZ
PLVVLRQLQDVVHVVHGWKHFXUUHQW
VWDWHRIWKH0:%DWDDQUHDFWRU
PRWKEDOOHGLQDQGLGHQWLÀHG
WKHLVVXHVWKHJRYHUQPHQWQHHGVWR
FRQVLGHULQUHKDELOLWDWLQJWKHSODQW
$.(3&2IHDVLELOLW\VWXG\HVWLPDWHV
WKDWLWFRXOGEHUHIXUELVKHGDWDFRVW
RIDERXWELOOLRQ%XWHQYLURQPHQWDO
JURXSVVXFKDV*UHHQSHDFHKDYH
VWURQJO\RSSRVHGWKHSURMHFWDQGWKH
JRYHUQPHQWKDVQRW\HWJLYHQLWD
JUHHQOLJKW
,QDGGLWLRQWRUDLVLQJVDIHW\DQG
HQYLURQPHQWDOFRQFHUQV*UHHQSHDFH
KDVDUJXHGWKDWWKHSURMHFWLVWRR
H[SHQVLYHDQGFRQWDLQVPDMRUKLGGHQ
FRVWV,WWROG3KLOLSSLQHODZPDNHUV
-XO\²6HSWHPEHU 'HYHORSPHQW$VLD
 ,5,9.@:,*<90;@

ODVW\HDUWKDWWKHSXUVXLWRIQXFOHDU
SRZHUFRQVWLWXWHV´DJDUJDQWXDQ
DQGXQMXVWEXUGHQRQ)LOLSLQRVµDQG
FRXOGEHFRPH´WKHDOWDUXSRQZKLFK
WKLVFRXQWU\ZLOOEDQNUXSWLWVHOIµ
7KHJRYHUQPHQWQHYHUWKHOHVVLVDOVR
FRQVLGHULQJWKHSXUFKDVHRIWZR
0:XQLWVIURPWKH5HSXEOLFRI
.RUHDZKLFKZRXOGEXLOGWKHSURMHFW
ZLWKHTXLSPHQWIURPDGHDOZLWKWKH
'HPRFUDWLF3HRSOH·V5HSXEOLFRI.RUHD
WKDWZDVVXVSHQGHGLQDQGODWHU
DEDQGRQHG
7KDLODQGSODQVWREXLOGD0:
QXFOHDUSRZHUSODQWZLWKFRQVWUXFWLRQ
VWDUWLQJLQDQGWKHÀUVW
0:FRPLQJRQVWUHDPE\$7KDL
UHVHDUFKUHDFWRUKDVEHHQRSHUDWLQJ
VLQFHDQGDODUJHURQHLVEHLQJ
EXLOW
0DOD\VLDZKLFKQRZSURGXFHV 18&/($5$0%,7,21$%29(7KLV :(,*+,1*)8785(237,216%(/2:
QHDUO\WZRWKLUGVRILWVHOHFWULFLW\IURP KDQGRXWSLFWXUHUHOHDVHGE\.RUHD 6LQJDSRUHҋVÀUVWRIIVKRUHSRZHUSODQW
QDWXUDOJDVKDVEXGJHWHGELOOLRQWR +\GURDQG1XFOHDU3RZHU&RVKRZVD WKH3XODX6HUD\D3RZHU6WDWLRQVXSSOLHV
EXLOGDQXFOHDUSRZHUSODQWE\ QXFOHDUSRZHUSODQWXQGHUFRQVWUXFWLRQ RQHWKLUGRIWKHQDWLRQҋVHOHFWULFLW\
DFFRUGLQJWRWKH:1$ 7KH5HSXEOLFRI.RUHDZKLFKKDVVSHQW QHHGVWRGD\7KHJRYHUQPHQWH[SHFWV
GHFDGHVGHYHORSLQJQXFOHDUSRZHUWR HOHFWULFLW\QHHGVWRGRXEOHE\DQG
6,1*$325(:(,*+,1* PDNHXSIRULWVODFNRIRLOQRZKRSHVWR LVFRQVLGHULQJWDSSLQJQXFOHDUSRZHUIRU
18&/($532:(5 EHFRPHDJOREDOOHDGHULQDWRPLFHQHUJ\ WKHÀUVWWLPH
6LQJDSRUHUHOLHVH[FOXVLYHO\RQQDWXUDO DVWKHZRUOGWXUQVDZD\IURPIRVVLOIXHOV
JDVLPSRUWHGIURP,QGRQHVLDDQG
0DOD\VLDWRPHHWLWVHOHFWULFLW\QHHGV
ZKLFKDUHH[SHFWHGWRGRXEOHE\
IURPWKHOHYHOVLQ8QWLOUHFHQWO\
WKHFLW\VWDWHZDVRQQRRQH·VUDGDUDV
DSRWHQWLDOPDUNHWIRUDQXFOHDUSRZHU
SODQW1RZLWLVDPRQJWKHFRXQWULHV
ORRNLQJLQWRWKHWHFKQRORJ\
´6LQJDSRUHKDVVWDUWHGWRVKRZDQ
LQWHUHVWLQLWµDOWKRXJKWKHTXHVWLRQRI
´SODQWVLWLQJFRXOGEHDVKRZVWRSSHUµ
VD\V5RJQHU´$IHZ\HDUVDJRWKH\
3,&785(&5(',76$)3 6,1*$325(35(66+2/',1*6

ZRXOGQ·WHYHQHQWHUWDLQWKHWKRXJKWµ
2YHUWKHSDVWPRQWKVKH
VD\V6LQJDSRUHDQRIÀFLDOV´KDYH
EHHQYLVLWLQJWKH,$($UHTXHVWLQJ
LQIRUPDWLRQRQWKHLQWURGXFWLRQRI
QXFOHDUSRZHUSURJUDPVVRDVWRJHW
DEHWWHUXQGHUVWDQGLQJRQLVVXHVOLNH
VLWLQJHQHUJ\V\VWHPSODQQLQJDQGVR
RQµ/DWHUWKLV\HDUWKHJRYHUQPHQW
SODQVWRODXQFKDIHDVLELOLW\VWXG\RI
QXFOHDUSRZHULQ6LQJDSRUHQ

'HYHORSPHQW$VLD -XO\²6HSWHPEHU ZZZGHYHORSPHQWDVLD

 7KH*UHHQ5DFH
$VLDLVEHWWLQJELJRQUHQHZDEOHHQHUJ\&DQLWGHOLYHU"
%<-DPHV+XWFKLVRQ

&
ORVLQJ$VLD·VHQHUJ\JDS
ZKLOHPHHWLQJFOLPDWHFKDQJH
FRPPLWPHQWVLVDWDOORUGHU
EXWDVXLWHRIFOHDQUHQHZDEOHHQHUJ\
WHFKQRORJLHVFRXSOHGZLWKLPSURYHG
HQHUJ\HIÀFLHQF\VD\H[SHUWVLVWKH
RQO\UHDOVROXWLRQ(YHU\WKLQJIURP
PHJDSURMHFWV³LQFOXGLQJK\GUR
SRZHUZLQGIDUPVJHRWKHUPDO
SODQWVDQGVRODUFRQFHQWUDWRUV³WR
FRPPXQLW\VL]HGRIIJULGPLQLK\GUR
JHQHUDWRUVYLOODJHELRJDVGLJHVWHUV
ELRIXHOVURRIWRSVRODUSDQHOVDQGHYHQ
ZDYHSRZHUZLOOSOD\DFUXFLDOUROHLQ
$VLD·VHQHUJ\IXWXUH
7KH,QWHUQDWLRQDO6RODU(QHUJ\
6RFLHW\SRLQWVRXWWKDWEHFDXVHRILWV
XQGHUGHYHORSHGHQHUJ\LQIUDVWUXFWXUH
DQGXQLTXHUHQHZDEOHHQHUJ\
SRWHQWLDOWKHGHYHORSLQJZRUOGLQ
SDUWQHUVKLSZLWKWKHLQGXVWULDOL]HG
FRXQWULHVFDQOHDSIURJWRUHQHZDEOH
HQHUJ\WHFKQRORJLHVZKLOHEHQHÀWLQJ \HDUO\DVZHOODVPDNHGRPHVWLF $6,$ҋ6),5672))6+25(:,1')$50
IURPWKH.\RWR3URWRFRO SROLF\DQGLQVWLWXWLRQDOUHIRUPVWR 7KH35&SXWLQWRRSHUDWLRQLQ-XQHWKH
7KURXJKWKHVHLQQRYDWLYHJUHHQ DWWDLQVXVWDLQDEOHHQHUJ\JURZWK 0:6KDQJKDL'RQJKDL%ULGJH3URM
WHFKQRORJLHVGHYHORSLQJFRXQWULHVLQ WKH:RUOG%DQNUHSRUWHVWLPDWHV,W HFWLQWKH<DQJW]H5LYHU'HOWD,WLVWKH
$VLDFDQDOVRDYRLGWKHIRVVLOIXHO DGGVWKDWWKH3HRSOH·V5HSXEOLFRI ÀUVWRIIVKRUHZLQGIDUPRXWVLGH(XURSH
LQWHQVLYHDQGZDVWHIXOSUDFWLFHVRI
GHYHORSHGFRXQWULHVE\ODXQFKLQJLQWR
DQHZHUDRIFOHDQUHQHZDEOHHQHUJ\
%XWWKH:RUOG%DQNUHSRUW:LQGVRI
&KDQJH(DVW$VLD·V6XVWDLQDEOH(QHUJ\
)XWXUHFDXWLRQVWKDWWKHZLQGRZRI
RSSRUWXQLW\LVFORVLQJIDVWDQGWKH
UHJLRQULVNVEHFRPLQJORFNHGLQWRKLJK
3,&785(&5(',7,0$*,1(&+,1$
FDUERQLQIUDVWUXFWXUHLIJRYHUQPHQWVGR
QRWDFWSURPSWO\
02%,/,=,1*32/,&<$1')81',1*
(DVW$VLD·VVL[PDMRUHQHUJ\FRQVXPLQJ
FRXQWULHVZLOOQHHGWRPRELOL]H
DERXWELOOLRQLQLQYHVWPHQW
ZZZGHYHORSPHQWDVLD
&KLQD35&,QGRQHVLD0DOD\VLD
WKH3KLOLSSLQHV7KDLODQGDQG9LHW
1DPFDQVLPXOWDQHRXVO\VWDELOL]H
JUHHQKRXVHJDVHPLVVLRQVE\
ZLWKRXWFRPSURPLVLQJJURZWK
WKURXJKDGGLWLRQDOÀVFDOLQYHVWPHQWLQ
UHQHZDEOHHQHUJ\DQGHQHUJ\HIÀFLHQF\
´7KHVSHHGDQGVFDOHRIXUEDQL]DWLRQ
SUHVHQWDQXQULYDOOHGRSSRUWXQLW\WR
EXLOGORZFDUERQFLWLHVµVD\V;LDRGRQJ
:DQJOHDGDXWKRURIWKHUHSRUWDQG
VHQLRUHQHUJ\VSHFLDOLVWDWWKH:RUOG
%DQN´7KHWHFKQLFDODQGSROLF\
PHDQVDOUHDG\H[LVWIRUWKHQHFHVVDU\
WUDQVIRUPDWLRQZKDW·VQHHGHGLV
SROLWLFDOZLOODQGXQSUHFHGHQWHG
LQWHUQDWLRQDOFRRSHUDWLRQWRPHHWWKH
ÀQDQFLQJQHHGVµVKHDGGV7RERRVW
DOWHUQDWLYHHQHUJ\E\DQGPDNH
UHQHZDEOHHQHUJ\FRPSHWLWLYHZLWK
FRQYHQWLRQDOHQHUJ\VRXUFHVWKHUHSRUW
VXJJHVWVÀQDQFLDOLQFHQWLYHSROLFHV
RUDWD[RQIRVVLOIXHOV,WDOVRVWUHVVHV
WKHQHHGWRDFFHOHUDWHLQQRYDWLRQDQG
HPEUDFHFOHDQWHFKQRORJLHVULJKWDZD\
5HQHZDEOHHQHUJ\SURMHFWVDUHDOUHDG\
JDWKHULQJPRPHQWXPLQWKHUHJLRQ
%ORRPEHUJ%XVLQHVV:HHNUHSRUWHGWKDW
LQ$VLDDQG2FHDQLDH[FHHGHG
-XO\²6HSWHPEHU 'HYHORSPHQW$VLD
 ,5,9.@:,*<90;@

LQYHVWPHQWVLQFOHDQHQHUJ\LQWKH LQGXVWU\LVH[SHFWHGWREHZRUWK
$PHULFDVIRUWKHÀUVWWLPHZLWKQHZ DERXWELOOLRQD\HDUJOREDOO\
FOHDQHQHUJ\LQYHVWPHQWVWRWDOLQJ DQGLVSRLVHGWREHFRPHWKHWKLUG
ELOOLRQ7KH$VLDQ'HYHORSPHQW%DQN·V ODUJHVWLQGXVWULDOPDUNHWZRUOGZLGH
$'%&OHDQ(QHUJ\3URJUDPKDV
LQYHVWHGELOOLRQRYHUWKHSDVW\HDUV
LQUHQHZDEOHHQHUJ\HQHUJ\HIÀFLHQF\
DQGFOHDQWHFKQRORJ\GHSOR\PHQWWKDW
HQFRXUDJHLWVGHYHORSLQJPHPEHU
FRXQWULHVWRPRYHWRZDUGORZFDUERQ
HQHUJ\JHQHUDWLRQDQGXWLOL]DWLRQ7KH
PXOWLELOOLRQGROODU&OLPDWH,QYHVWPHQW
)XQGVDFROODERUDWLYHHIIRUWDPRQJ
PXOWLODWHUDOGHYHORSPHQWEDQNVDQG
FRXQWULHVVXSSRUWFOHDQWHFKQRORJ\
FOLPDWHUHVLOLHQFHIRUHVWSURWHFWLRQ
DQGUHQHZDEOHHQHUJ\LQORZLQFRPH
FRXQWULHV
7KH35&WKHZRUOG·VPRVWSRSXORXV
FRXQWU\DQGQRZWKHSURGXFHURIWKH
JUHDWHVWVKDUHRIJOREDOJUHHQKRXVH
JDVHPLVVLRQVLVSURMHFWHGWREHFRPH
WKHZRUOG·VODUJHVWFRQVXPHURIHQHUJ\
E\7KHJRYHUQPHQWLVRQWUDFN
WRUHDFKLWVKLVWRULFFRPPLWPHQWWR
JHQHUDWHRILWVHQHUJ\QHHGVIURP
UHQHZDEOHVRXUFHVE\7KHELOOLRQV
LQYHVWHGLQUHQHZDEOHHQHUJ\PDNHWKH
QDWLRQDJOREDOOHDGHULQWKHSURGXFWLRQ
DQGXVHRIHYHU\WKLQJIURPZLQG
IDUPVDQGVRODUSODQWVWRYLOODJHELRJDV
GLJHVWHUVDQGVRODUZDWHUKHDWHUV
%\VHWWLQJWKHPRVWDPELWLRXV
JUHHQJRDOVLQ$VLDH[SHUWVSUHGLFW
WKHQH[WGHFDGHZLOOVHHWKH35&
EHFRPHWKHZRUOG·VODUJHVWSURGXFHU
DQGFRQVXPHURIDOWHUQDWLYHHQHUJ\
7KHQDWLRQLVDOUHDG\WKHZRUOG·V
ODUJHVWPDQXIDFWXUHURIZLQGWXUELQHV
DQGELRJDVIHUPHQWHUVDQGLVDW
WKHIRUHIURQWRIWKHGHYHORSPHQWRI
HOHFWULFFDUV,QGLD-DSDQWKH5HSXEOLF
RI.RUHDDQG6LQJDSRUHDUHDOVR
GHYHORSLQJZRUOGFODVVUHQHZDEOH
HQHUJ\WHFKQRORJLHVWKDWZLOOEHQHÀW
RWKHUFRXQWULHVLQWKHUHJLRQHYHQPRUH
DVSULFHVGURS
*(1(5$7,1**5((1-2%6
7KHUHQHZDEOHHQHUJ\LQGXVWU\LV
FUHDWLQJWKRXVDQGVRIQHZMREVLQ
WKHUHJLRQ%\WKHFOHDQHQHUJ\
'HYHORSPHQW$VLD -XO\²6HSWHPEHU
DFFRUGLQJWRD:RUOG:LOGOLIH)XQG
UHSRUW
$FFRUGLQJWRWKH&KLQHVH5HQHZDEOH
(QHUJ\,QGXVWULHV$VVRFLDWLRQMREV
LQUHQHZDEOHHQHUJ\LQGXVWULHVDUH
FOLPELQJE\D\HDULQWKH
35&7KH5HSXEOLFRI.RUHDKDVPDGH
JUHHQWHFKQRORJ\DSULRULW\DQGKDV
EXGJHWHGELOOLRQWREHVSHQWE\
WKLVZLOODOVREULQJWKRXVDQGV
RIQHZMREV-DSDQKDVVHWDVLGH
ELOOLRQRILWVVWLPXOXVEXGJHWIRU
GHYHORSLQJUHQHZDEOHHQHUJ\LQFOXGLQJ
VXEVLGLHVIRUUHVLGHQWLDOVRODUSURMHFWV
6LQJDSRUHLVFRPPLWWHGWRIRVWHULQJ
FOHDQWHFKQRORJ\LQGXVWULHVZKLFK
DUHH[SHFWHGWRHPSOR\SHRSOH
E\7KHKHFWDUH&OHDQ7HFK
3DUNWKHFRQVWUXFWLRQRIZKLFKEHJLQV
LQZLOOSURYLGHDODUJHVFDOH
LQWHJUDWHG´OLYLQJODERUDWRU\µZKHUH
FRPSDQLHVFDQGHYHORSDQGWHVWFOHDQ
WHFKQRORJ\VROXWLRQVWKDWFDQEHVFDOHG
XSIRUDSSOLFDWLRQDFURVVWKH$VLD²
3DFLÀFUHJLRQ
:$7(532:(5
/DUJHVFDOHK\GURSRZHUSURMHFWVGZDUI
DOORWKHUVRXUFHVRIFOHDQUHQHZDEOH
HQHUJ\LQ$VLDZLWKPHJDSURMHFWV
LQFRXQWULHVIURPWKH/DR3HRSOH·V
'HPRFUDWLF5HSXEOLFWR3DNLVWDQ
DQGPDQ\PRUHSODQQHGLQDUHJLRQ
WKDWKDVYDVWXQWDSSHGSRWHQWLDO
+\GURSRZHUKDVVHYHUDODGYDQWDJHV
LWLVKLJKO\UHOLDEOHKDVORZRSHUDWLQJ
FRVWVDQGFDQDGMXVWTXLFNO\WRORDG
FKDQJHV'LVDGYDQWDJHVLQFOXGHKLJK
VWDUWXSFRVWVSRVVLEOHGLVSODFHPHQW
RISRSXODWLRQVLQXQGDWLRQDQGORVV
RIODQGDQGGLVUXSWLRQRIZDWHUZD\V
3,&785(&5(',7,0$*,1(&+,1$
´5XQRIWKHULYHUµSODQWVZKLFKXVH
WKHQDWXUDOÁRZDQGHOHYDWLRQGURS
RIWKHULYHUWRJHQHUDWHSRZHUKDYH
WKHOHDVWLPSDFWRQHFRV\VWHPVDQG
PLQLPL]HLQFRQYHQLHQFHWRQHDUE\
FRPPXQLWLHV,IFOLPDWHFKDQJHJRDOV
JRXQPHWK\GURSRZHUFRXOGEH
ZZZGHYHORSPHQWDVLD
 WKUHDWHQHGDVORZZDWHUÁRZVLQULYHUV
PD\DIIHFWRXWSXW
0LFURK\GURSRZHULVEHLQJXVHGWR
EULQJHOHFWULFLW\WRWKHSRRULQUHPRWH
FRPPXQLWLHVDQGLVODQGVZLWKVXLWDEOH
UHVRXUFHVLQFRXQWULHVVXFKDVWKH
35&,QGRQHVLDDQGWKH3KLOLSSLQHV
9LHW1DPKDVRYHUPLFURK\GUR
VFKHPHVVXSSO\LQJRYHU
KRXVHKROGV0LFURK\GURV\VWHPVKDYH
ORZHQYLURQPHQWDOLPSDFWDVWKH\
WHPSRUDULO\GLYHUWVPDOODPRXQWVRI
ZDWHUIURPDQHDUE\ULYHURUVWUHDPWR
VSLQDJHQHUDWRUWRSURGXFHHOHFWULFLW\
EHIRUHUHWXUQLQJWKHZDWHUWRWKHULYHU
/RZYROWDJHORFDOJULGVFDQGHOLYHUWKH
SRZHUWRKRPHVDQGFRRSHUDWLYHVFDQ
EHWUDLQHGWRSHUIRUPPDLQWHQDQFHDQG
FROOHFWXVDJHIHHVWRSD\IRUXSNHHSRI
WKHV\VWHP
&$7&+,1*7+(:,1'
:LQGJHQHUDWHGSRZHULVJURZLQJ
JOREDOO\E\SHU\HDUDQGQRZ
HPLVVLRQVDQGFUHDWLQJWKRXVDQGV
RIMREVLQWKHSURFHVVµVD\V*:(&
6HFUHWDU\*HQHUDO6WHYH6DZ\HU%XWOLNH
RWKHUVRXUFHVRIUHQHZDEOHHQHUJ\ZLQG
SRZHULVDWWKHPHUF\RIWKHHOHPHQWV³
QRZLQGPHDQVQRSRZHUJHQHUDWLRQ³
DQGXQVHFXUHGWXUELQHEODGHVH[FHHGLQJ
WKHZLQJVSDQRIDMXPERMHWFDQEH
GDPDJHGE\KLJKZLQGVDVVRFLDWHGZLWK
W\SKRRQVLQWURSLFDO$VLD7KLVPDNHV
VRSKLVWLFDWHGZHDWKHUSDWWHUQDQDO\VLV
DQGIRUHFDVWLQJIRUZLQGDQGVRODU
SRZHUJHQHUDWLRQLQWKHUHJLRQFULWLFDO
QRWRQO\IRUÀQGLQJWKHEHVWORFDWLRQV
EXWDOVRIRUHIÀFLHQWRSHUDWLRQRIZLQG
DQGVRODUSODQWV
:LWKWKHEHVWZLQGSRZHUDQGVRODU
ORFDWLRQVRIWHQLQUHPRWHDUHDVIDU
IURPH[LVWLQJQDWLRQDOSRZHUJULGV
ODUJHLQYHVWPHQWVDUHQHHGHGWR
ÀQDQFHWUDQVPLVVLRQOLQHVDQGRWKHU
LQIUDVWUXFWXUHIRUWKHVHUHQHZDEOH
HQHUJ\SURMHFWV([LVWLQJQDWLRQDO
SRZHUJULGVZHUHQRWGHVLJQHGWR
GHWDLOHGLQIRUPDWLRQWRRSHUDWRUVDQG
HQGXVHUVLQWKHLUKRPHV6LQJDSRUH
LVVHWWLQJXSWKH([SHULPHQWDO3RZHU
*ULG&HQWUHDQGDSLORWSURMHFWIRUDQ
´LQWHOOLJHQWHQHUJ\V\VWHPµWRGHYHORS
DQGWHVWFRPSUHKHQVLYHVPDUWJULG
VROXWLRQV
7KH35&LVDERXWWREULQJRQOLQHWKH
QDWLRQ·VÀUVWIXOOVFDOHRIIVKRUHZLQG
IDUPWKH0:6KDQJKDL'RQJKDL
%ULGJH3URMHFWLQWKH<DQJW]H5LYHU
'HOWDLQVWDOOHGE\35&WXUELQHSURGXFHU
6LQRYHO7KHÀUVWRIVHYHUDOODUJHVFDOH
RIIVKRUHZLQGSRZHUSURMHFWVH[SHFWHG
WRJHQHUDWHXSWR0:LWLVSDUWRI
WKHJRYHUQPHQW·VJRDOWRVXSSO\FOHDQ
SRZHUWRRIWKHSRSXODWLRQOLYLQJ
DORQJWKHHDVWHUQVHDERDUGDQGWROHDG
WKHZRUOGLQERWKRQVKRUHDQGRIIVKRUH
ZLQGSRZHU7KH$VLD²3DFLÀFUHJLRQ
KDVWUHPHQGRXVRIIVKRUHZLQGSRZHU
SRWHQWLDODQGRWKHU$VLDQFRXQWULHVDUH
WDSSLQJLQWRUHJLRQDOH[SHUWLVH
FRVWVOHVVSHUPHJDZDWW0:
WKDQLWGLGGHFDGHVDJR³JRRGQHZV
IRU$VLDQGHYHORSLQJFRXQWULHVZLWK
KLJKZLQGSRZHUSRWHQWLDOVXFKDVWKH
3KLOLSSLQHVDQG9LHW1DP
7KH%HOJLXPEDVHG*OREDO:LQG
KDQGOHWKHLQWHUPLWWHQWRXWSXWRI
UHQHZDEOHHQHUJ\VRXUFHVVXFKDV
ZLQGDQGVRODUSRZHU7KHVHPXVW
EHUHGHVLJQHGLQWR´VPDUWJULGVµ³
ZKLFKDUHQRWRQO\FDSDEOHRIXVLQJ
ÁXFWXDWLQJSRZHUVRXUFHVEXWDOVR
+$51(66,1*6816+,1(
6RODUSRZHUFRXOGPDNHXSDVPXFK
DVDTXDUWHURIWKHZRUOG·VWRWDO
HOHFWULFLW\SURGXFWLRQE\ZLWKWKH
(QHUJ\&RXQFLO*:(&UHSRUWHGWKDW DEOHWRUHGXFHSRZHUORVVDQGLPSURYH 62/$5+20($ZRUNHUFOHDQVVRODU
WKH35&PRUHWKDQGRXEOHGLWVZLQG UHOLDELOLW\6PDUWJULGVXVHLQIRUPDWLRQ SDQHOVDW,QGLDҋVÀUVWVRODUKRXVLQJ
JHQHUDWLRQFDSDFLW\EHWZHHQDQG WHFKQRORJ\V\VWHPVWRSURYLGH SURMHFWLQ5DMDUKDWQHDU.RONDWD
,QGLDDGGHGQHDUO\0:LQ
WKHVDPHSHULRGDQGDGGLWLRQDOFDSDFLW\
LQFRXQWULHVLQFOXGLQJ-DSDQWKH
5HSXEOLFRI.RUHDDQG7DLSHL&KLQD
KDVUHVXOWHGLQ$VLDEHFRPLQJWKH
ELJJHVWUHJLRQDOPDUNHWIRUZLQG
HQHUJ\LQ
7HFKQLFDOSUREOHPVWKDWEHVHWHDUO\
ZLQGWXUELQHVKDYHEHHQVROYHGDQGWKH
ODWHVWZLQGWXUELQHVKDYHGUDPDWLFDOO\
LPSURYHGSRZHUUDWLQJVHIÀFLHQF\DQG
UHOLDELOLW\&RQVHTXHQWO\JHQHUDWLQJ
FRVWVKDYHIDOOHQSUHFLSLWRXVO\RYHU
WKHSDVW\HDUVPRYLQJHYHUFORVHU
WRWKHFRVWRIFRQYHQWLRQDOHQHUJ\
3,&785(&5(',7$)3

VRXUFHV´:LQGSRZHULVFOHDQUHOLDEOH
DQGTXLFNWRLQVWDOOVRLWLVWKHPRVW
DWWUDFWLYHVROXWLRQIRULPSURYLQJVXSSO\
VHFXULW\UHGXFLQJ&2>FDUERQGLR[LGH@

ZZZGHYHORSPHQWDVLD -XO\²6HSWHPEHU 'HYHORSPHQW$VLD

 ,5,9.@:,*<90;@
XVHRISKRWRYROWDLFDQGFRQFHQWUDWLQJ
VRODUSRZHUWHFKQRORJLHVVD\VWKH
,QWHUQDWLRQDO(QHUJ\$JHQF\1HZ
VWXGLHVRIWKHWZRWHFKQRORJLHVE\
WKHDJHQF\VKRZHGSKRWRYROWDLF
SDQHOV³DUUD\VRIFHOOVFRQWDLQLQJ
PDWHULDOWKDWFRQYHUWVVRODUUDGLDWLRQ
LQWRGLUHFWFXUUHQWHOHFWULFLW\³FRXOG
SURYLGHDERXWRIJOREDOHOHFWULFLW\
SURGXFWLRQE\3KRWRYROWDLF
WHFKQRORJLHVKDYHJUHDWSRWHQWLDOWR
KHOSUHOLHYH$VLD·VHQHUJ\SRYHUW\
HVSHFLDOO\LQUXUDODUHDVQRWRQQDWLRQDO
JULGVKRZHYHUH[SHQVHKDVEHHQD
PDMRUVWXPEOLQJEORFNIRUGHYHORSLQJ
FRXQWULHV7RGD\WKHZRUOG·VODUJHVW
VRODUSDQHOSURGXFHUWKH35&DORQJ
ZLWK-DSDQDQG6LQJDSRUHDUHZRUOG
OHDGHUVLQWKHPDQXIDFWXUHRIQHZ
JHQHUDWLRQKLJKHUHIÀFLHQF\XQLWV
:LWKSULFHVH[SHFWHGWRSOXPPHW
ZLWKLQWKHGHFDGHVRODUSDQHOVLQ
IRUPVUDQJLQJIURPURRIWRSZDWHU
KHDWHUVWRKXJHSKRWRYROWDLFDUUD\V
VKRXOGEHFRPHDFRPPRQVLJKWDFURVV
WKHUHJLRQ
8]EHNLVWDQ´6XVWDLQDEOHVRODUHQHUJ\
FDQEHWKHFOHDQSRZHURIWKHIXWXUH
LIWKHUHDUHDSSURSULDWHLQFHQWLYHV
DQGÀQDQFLQJPHFKDQLVPVLQSODFHµ
$'%KDVDSSURYHGLQYHVWPHQWLQD
0:VRODUSRZHUSODQWLQFHQWUDO
7KDLODQGOLNHO\WREHRQHRIWKHODUJHVW
VRODUSKRWRYROWDLFSURMHFWVLQWKH
ZRUOGXVLQJLQQRYDWLYHWKLQÀOP
SKRWRYROWDLFWHFKQRORJ\$'%·VVRODU
LQLWLDWLYHLQFOXGHVWKH6RODU(QHUJ\
)RUXPZKHUHLQWHUQDWLRQDOH[SHUWV
VKDUHNQRZOHGJHDERXWWUHQGVLQVRODU
HQHUJ\GHYHORSPHQWDQGGLVFXVVQHZ
VRODUSRZHUSURSRVDOVDQGLQFHQWLYH
PHFKDQLVPV
´7KHUDSLGVSUHDGRIVRODUOLJKWLQJ
V\VWHPVVRODUZDWHUSXPSVDQGRWKHU
VRODUSRZHUEDVHGUXUDODSSOLFDWLRQV
LQ,QGLDLVEHJLQQLQJWROLJKWWKHOLYHV
RIWHQVRIPLOOLRQVRI,QGLD·VHQHUJ\
SRRUFLWL]HQVµVDLG,QGLDQ3ULPH
0LQLVWHU0DQPRKDQ6LQJKDWWKH
ODXQFKRIWKHQDWLRQ·VFHQWHUSLHFH
RIUHQHZDEOHHQHUJ\GHYHORSPHQW
LQ-DQXDU\7KH-DZDKDUODO1HKUX
WKHVHHGVIURPLWVIUXLWDUHULFKLQD
\HOORZLVKOLTXLGVLPLODUWRSDOPRLO
DQGFDQEHPDGHLQWRELRGLHVHO7KH
SODQWWKULYHVLQPDUJLQDORUZDVWHODQG
XQVXLWDEOHIRUIRRGFURSVQHHGVOLWWOH
ZDWHURUIHUWLOL]HUDQGLVQRWHGLEOH
,Q,QGLDPLOOLRQVRIDFUHVRIVXFKODQG
DUHEHJLQQLQJWRWXUQJUHHQDVIDUPHUV
SODQWMDWURSKD7KHSODQWLVQRZDOVR
EHLQJFXOWLYDWHGLQWKH3KLOLSSLQHV
DQG7KDLODQG,QGLDQUDLOZD\VDUH
XVLQJELRIXHOVLQORFRPRWLYHVDQGKDYH
SODQWHGPLOOLRQVRIMDWURSKDSODQWV
DORQJVLGHWUDFNV6XFKELRIXHOFRXOG
DOVREHDKRPHJURZQFOHDQHQHUJ\
VROXWLRQIRUPLOOLRQVRIUXUDOYLOODJHUV
ZLWKRXWHOHFWULFDOFRQQHFWLRQVWRSRZHU
JULGV
7KHLSXQLDEXVKZKLFKJURZV
LQPDUVK\ODQGQRWVXLWDEOHIRU
DJULFXOWXUHLVEHLQJXVHGLQ,QGLD
DVELRPDVVWRFUHDWHPHWKDQHJDV
ZKLFKSRZHUVJHQHUDWRUVWKDWSURGXFH
HOHFWULFLW\%LRPDVVUHVRXUFHVVXFKDV
ZRRGDQGEDJDVVHWKHGU\ÀEURXV
UHVLGXHRIVXJDUFDQHOHIWDIWHUMXLFH
&RQFHQWUDWLQJVRODUV\VWHPVUHO\
RQKXJHEDQNVRIPLUURUVWKDWIRFXV
VRODUHQHUJ\WRUDLVHVWHDPZKLFK
GULYHVWXUELQHVDQGDUHQRZFDSDEOHRI
SURGXFLQJHOHFWULFLW\DURXQGWKHFORFN
WKURXJKDV\VWHPRIVWRULQJHQHUJ\
DVKHDWLQVXEVWDQFHVVXFKDVPROWHQ
VDOW$OWKRXJKQRWDOOH[SHUWVDJUHH
RQWKHWHFKQRORJ\·VVXLWDELOLW\WRORFDO
FRQGLWLRQVWKH35&LVIRUJLQJDKHDG
ZLWKFRQVWUXFWLRQRIXSWR0:RI
SRZHUSODQWVXVLQJFRQFHQWUDWLQJVRODU
SRZHURYHUWKHQH[WGHFDGHVWDUWLQJ
ZLWKD0:SODQWLQWKHFHQWUDO35&
&HQWUDO$VLDQFRXQWULHVVXFKDV
.D]DNKVWDQDQG3DNLVWDQKDYHYDVW
GHVHUWODQGVPDNLQJWKHPH[FHOOHQW
FDQGLGDWHVIRUODUJHVFDOHVRODUHQHUJ\
GHYHORSPHQW$'%LVKHOSLQJÀQDQFH
WKH$VLD6RODU(QHUJ\,QLWLDWLYH
ZLWKWKHJRDORIGHYHORSLQJODUJH
FDSDFLW\SURMHFWVWKDWZLOOJHQHUDWH
0:RIVRODUHQHUJ\E\
$FFRUGLQJWR$'%0DQDJLQJ'LUHFWRU
*HQHUDO5DMDW1DJVSHDNLQJDW$'%·V
UG$QQXDO0HHWLQJLQ7DVKNHQW
'HYHORSPHQW$VLD -XO\²6HSWHPEHU
1DWLRQDO6RODU0LVVLRQLVH[SHFWHG
WRERRVWGHSOR\PHQWRIVRODUHQHUJ\
V\VWHPVDQGLQVWDOO0:RIVRODU
FDSDFLW\E\2QFHSDULW\ZLWKWKH
FRQYHQWLRQDOSRZHUWDULIILVDFKLHYHG
WKHSULPHPLQLVWHUQRWHGWKHUHZLOOEH
QRWHFKQRORJLFDORUHFRQRPLFEDUULHU
WRWKHUDSLGDQGODUJHVFDOHH[SDQVLRQ
RIVRODUSRZHU%XWWKHSURJUDP·V
VXFFHVVGHSHQGVRQÀQGLQJZD\VWR
UHGXFHWKHVSDFHLQWHQVLW\RIFXUUHQW
VRODUDSSOLFDWLRQVLQFOXGLQJWKURXJK
WKHXVHRIQDQRWHFKQRORJ\&RVW
HIIHFWLYHDQGFRQYHQLHQWVWRUDJHRI
VRODUHQHUJ\EH\RQGGD\OLJKWKRXUV
ZLOODOVREHFULWLFDOWRLWVHPHUJHQFHDVD
PDLQVWUHDPVRXUFHRISRZHU
*52:,1*(1(5*<
%LRIXHOVVXFKDVWKRVHGHULYHGIURP
FRUQKDYHFRPHXQGHUFULWLFLVPIRU
GLVSODFLQJDJULFXOWXUDOIRRGFURSVDQG
KXUWLQJWKHSRRUVRDQHZSDWKIRU
JURZLQJHQHUJ\LVQHHGHG7KHMDWURSKD
SODQWDQGRWKHUHQHUJ\FURSVPLJKW
MXVWEHWKHNH\WRELRIXHO·VIXWXUH
H[WUDFWLRQDQGRWKHUDJULFXOWXUDO
UHVLGXHV³ULFHKXOOVSDOPRLOZDVWH
DQGZRRGZDVWH³DUHDEXQGDQWLQ$VLD
DQGDOVRKDYHJRRGSRWHQWLDODVIXHOV
IRUJUHHQSRZHUJHQHUDWLRQ
$QLPDOZDVWHIURPOLYHVWRFNIDUPV
LVEHLQJUHQGHUHGVDIHDQGSXWWRXVH
LQFRXQWULHVVXFKDV9LHW1DPDQG
WKH35&WRJHQHUDWHHQHUJ\WKURXJK
ELRJDVWHFKQRORJ\3LJJHULHVFRPSULVH
RIWKHOLYHVWRFNVHFWRULQ$VLDDQG
SLJVSURGXFHWLPHVPRUHZDVWHWKDQ
KXPDQV$KRXVHKROGZLWKMXVWDIHZ
KHDGRIOLYHVWRFNFDQJHQHUDWHHQRXJK
ELRJDVWRPHHWPXFKRILWVFRRNLQJ
QHHGVDQGHYHQDGGLWLRQDOHOHFWULFLW\
ZLWKDJDVGULYHQJHQHUDWRU³
VXSSODQWLQJNHURVHQHRUZRRGIXHO
ZKLFKDUHPDMRUVRXUFHVRIKRXVHKROG
SROOXWLRQLQ$VLD$W\SLFDOKRXVHKROG
GLJHVWHUFRQYHUWVUDZPDQXUHWKURXJK
IHUPHQWDWLRQLQWRFOHDQJDVIRUFRRNLQJ
DQGOLJKWLQJDQGVOXUU\WRIHUWLOL]H
FURSV+RZHYHUWKHSULFHWDJRIPRUH
WKDQHDFKSXWVWKHPRXWRIWKH
UHDFKRIPLOOLRQVRIUXUDOSRRUXQOHVV
ZZZGHYHORSPHQWDVLD
 (19,5210(17)5,(1'/<'ULHGFRZ
GXQJFDNHVDUHXVHGDVDQHQYLURQPHQW
IULHQGO\DOWHUQDWLYHWRÀUHZRRGLQPDQ\
SDUWVRI,QGLD'XQJLVDOVRXVHGWR
SURGXFHELRJDVWRJHQHUDWHHOHFWULFLW\

ÀQDQFLQJDVVLVWDQFHDQGVXEVLGLHVDUH
SURYLGHGRQDODUJHVFDOH

32:(5%(1($7+285)((7
7KH3KLOLSSLQHV·VWDWXVDVWKH
ZRUOG·VVHFRQGODUJHVWJHRWKHUPDO
SRZHUSURGXFHUKLJKOLJKWVWKH
SRWHQWLDORIJHRWKHUPDOUHVRXUFHV
WRVXSSO\UHQHZDEOHHQHUJ\IRU
RWKHUGHYHORSLQJFRXQWULHVLQWKH
UHJLRQ,QDQLQWHUYLHZZLWKWKH
$XVWUDOLDQ%URDGFDVWLQJ&RPPLVVLRQ
0DULR0DUDVLJDQGLUHFWRURIWKH
5HQHZDEOH(QHUJ\0DQDJHPHQW
%XUHDXRIWKH'HSDUWPHQWRI(QHUJ\
LQWKH3KLOLSSLQHVVD\VXQOLNHRWKHU
UHVRXUFHV³SDUWLFXODUO\ZLQG³WKDW
DUHUHODWLYHO\LQWHUPLWWHQWJHRWKHUPDO
HQHUJ\FDQSURYLGHFRQWLQXRXV
UHOLDEOHFDSDFLW\DWDQ\JLYHQWLPH
+HQRWHVKRZHYHUWKHKXJHXSIURQW
FRVWUHTXLUHGIRUGHYHORSPHQWLVWKH
PDMRULVVXHVWDOOLQJUDSLGSURJUHVV
0DUDVLJDQQRWHV
,QGRQHVLDKDVORQJSURGXFHG
JHRWKHUPDOHQHUJ\DQGKDVKXJH
UHVRXUFHVWKDWLIIXOO\H[SORLWHGFRXOG
IXOÀOOLWVHQWLUHQDWLRQDOHQHUJ\QHHGV
'HVSLWHWKHHQRUPRXVGHYHORSPHQW
FRVWVH[SHUWVVD\JHRWKHUPDOHQHUJ\
RIIHUVWKHEHVWRSWLRQIRUPDQ\
$VLDQFRXQWULHVWRSURYLGHFKHDS
FRQWLQXRXVDQGORZHPLVVLRQEDVH
ORDGSRZHU
,IFOHDQUHQHZDEOHHQHUJ\LVWR
KDYHDQ\FKDQFHRIZLQQLQJWKHEDWWOH
DJDLQVWHQHUJ\SRYHUW\DQGFOLPDWH
FKDQJHDQGSURYLGHIRUFRQWLQXHG
HFRQRPLFSURVSHULW\$VLDQQDWLRQV
PXVWJLYHLWVGHYHORSPHQWWKHKLJKHVW
SULRULW\:RUOG%DQN·V7KH:RUOG
'HYHORSPHQW5HSRUW'HYHORSPHQW
3,&785(&5(',7$)3

DQG&OLPDWH&KDQJHFRQFOXGHVWKDWD
´FOLPDWHVPDUWµZRUOGLVZLWKLQUHDFK
LIZHDFWQRZDFWWRJHWKHUDQGDFW
GLIIHUHQWO\IURPWKHSDVWQ

ZZZGHYHORSPHQWDVLD -XO\²6HSWHPEHU 'HYHORSPHQW$VLD

 ,5,9.@:,*<90;@

&UXGH$GGLFWLRQ
2LODQGJDVKDYHKHOSHGGULYH$VLDâVSKHQRPHQDOJURZWK
1RZWKHUHJLRQPXVWIDFHWKHGRZQVLGHRILWVGHSHQGHQF\
%<-RH&RFKUDQHDQG'DQD:LOOLDPV

$
VLD·VUHPDUNDEOHHFRQRPLF
ULVHGXULQJWKHSDVW
GHFDGHVFRXOGQRWKDYH
RFFXUUHGZLWKRXWRLO
FRQVXPSWLRQZLOOFRQWLQXHWRJURZ LPSRUWHUE\,QGLDPHDQZKLOH
DQGWKHJDSZLOOFRQWLQXHWRJRXS LPSRUWVEHWZHHQDQGRILWV
7KDW·VWKHWUHQGµ RLODQGDFFRUGLQJWR5XFKLND&KDZOD
,Q\HDUVWKH3HRSOH·V5HSXEOLFRI RIWKH1HZ'HOKLEDVHG$VLDQ(QHUJ\
DQGJDVWKHOLIHEORRGRIWKHUHJLRQ·V
G\QDPLFJURZWK%XWWKHIXHOWKDWKDV
PRYHGSHRSOHDQGSURGXFWVDFURVVWKH
UHJLRQ³DQGDURXQGWKHZRUOG³KDV
FUHDWHGDQXQVXVWDLQDEOHGHSHQGHQF\
´$VLDFRQVXPHVRIWKHZRUOG·V
RLOEXWKDVRQO\RIWKHZRUOG·V
SURGXFWLRQµVD\V.DQJ:XDVHQLRU
IHOORZLQHFRQRPLFVDWWKH+RQROXOX
EDVHG(DVW:HVW&HQWHU´$VLDDOUHDG\
QHHGVWZRWKLUGVRILWVRLOIURP
RXWVLGH)RUWKHQH[WWR\HDUVRLO
'HYHORSPHQW$VLD -XO\²6HSWHPEHU
&KLQD35&LVH[SHFWHGWRLPSRUW
RILWVRLODQGRILWVJDVGHPDQG
EHFRPLQJWKHODUJHVWRLOLPSRUWHULQWKH
ZRUOGDFFRUGLQJWRWKHUHFHQW:RUOG
%DQNUHSRUWHQWLWOHG:LQGVRI&KDQJH
(DVW$VLD·V6XVWDLQDEOH(QHUJ\)XWXUH
'HVSLWHLWVPDVVLYHRLODQGJDV
UHVHUYHV,QGRQHVLDLVDOUHDG\DQHW
FUXGHLPSRUWHUZKLFKIRUFHGLWWR
GURSRXWRIWKH2UJDQL]DWLRQRIWKH
3HWUROHXP([SRUWLQJ&RXQWULHVLQ
,WFRXOGHYHQEHFRPHDQHWJDV
,QVWLWXWHWKDWZLOOULVHWRE\
´7KDW·VREYLRXVO\KXJHDQG\RX
KDYHWRVHHLWLQWKHFRQWH[WWKDWPRVW
RIWKHFRXQWULHV>LQ$VLD@DUHWDONLQJ
DERXW7KHWUHQGVDUHVLPLODUµVKH
VD\V´)URPDQHQHUJ\VHFXULW\SRLQW
RIYLHZWKHUH·VDGHÀQLWHQHHGWRPRYH
DZD\IURPWKHFXUUHQWHQHUJ\EDVNHWµ
3,&785(&5(',7$)3
)8(/,1*029(0(17
$V$VLDKDVSURVSHUHGDQGLWVFLWLHV
KDYHGHYHORSHGWUDQVSRUWKDVEHFRPH
ZZZGHYHORSPHQWDVLD
 &58'(5($/,7</()7$ZRUNHUULGHV
SDVWEDUUHOVÀOOHGZLWKIXHOLQ-DNDUWD
'HVSLWHLWVPDVVLYHRLODQGJDVUHVHUYHV
,QGRQHVLDLVDQHWFUXGHLPSRUWHU

+,*+52$'72352*5(665,*+7
9HKLFOHVFRQYHUJHDWDEXV\LQWHUFKDQJH
LQ6KDQJKDLWKH35&$V$VLDKDV
SURVSHUHGDQGLWVFLWLHVKDYHJURZQ
WUDQVSRUWDWLRQKDVEHFRPHDNH\FRQFHUQ

DNH\LVVXH%XVHVDQGDXWRPRELOHV
FDUU\FRPPXWHUVWRZRUN7UXFNV
WUDLQVDQGVKLSVGHOLYHUWKHSURGXFWV
RILQGXVWU\$LUOLQHVSURYLGHDGLUHFW
OLQNWRRWKHUFLWLHVDQGFRXQWULHV
$ERXWPLOOLRQSHRSOHDUHDGGHG
WRWKHSRSXODWLRQRI$VLD·VFLWLHV
HDFK\HDUDFFRUGLQJWRWKH$VLDQ
'HYHORSPHQW%DQN/DUJHUSRSXODWLRQV
FUHDWHODUJHUVSUDZOZKLFKFUHDWHVD
JUHDWHUQHHGIRUWUDQVSRUW3HUVRQDO
YHKLFOHVVXFKDVFDUVDQGPRWRUF\FOHV
DUHEHFRPLQJLQFUHDVLQJO\SRSXODU
UHSODFLQJXQUHOLDEOHDQGXQFRPIRUWDEOH
SXEOLFWUDQVLWV\VWHPVDVSUHIHUUHG
PHWKRGVRIWUDYHO
&RQVHTXHQWO\WKHGHPDQGIRU
RLOLQ$VLDLVLQFUHDVLQJPXFKIDVWHU
WKDQLQWKHUHVWRIWKHZRUOG:KLOH
RLOLVDVLJQLÀFDQWQDWXUDOUHVRXUFH
LQDIHZFRXQWULHVLQWKHUHJLRQ
PRVWDUHGHSHQGHQWRQLPSRUWV7KH
FRXQWULHVLQWKHUHJLRQWKDWGRKDYH
RLOUHVHUYHVDUHH[SHFWHGWRLQFUHDVH WUDQVSRUWVHFWRUDQGLWVJURZWKUDWHKDV QDWXUDOJDVLVLQFUHDVLQJIDVWHUWKDQ
WKHLUSURGXFWLRQEXWGHPDQGLV H[FHHGHGWKDWRIWKHUHVWRIWKHZRUOG SURGXFWLRQDQGQDWXUDOJDVVHOI
ULVLQJIDVWHUWKDQSURGXFWLRQ:LWK VLQFH VXIÀFLHQF\GURSSHGIURPWR
LQFUHDVLQJGHSHQGHQFHRQRLOLPSRUWV 1DWXUDOJDVSURGXFWLRQKDV DFFRUGLQJWRDQ$'%UHSRUWRQ
WKHUHJLRQEHFRPHVHYHUPRUH LQFUHDVHGLQWKHUHJLRQPRVWO\IRU HQHUJ\VHFXULW\
YXOQHUDEOHWRSULFHÁXFWXDWLRQVDQG GRPHVWLFFRQVXPSWLRQE\SRZHUDQG
GLVUXSWLRQVLQVXSSO\ LQGXVWU\%HFDXVHLWLVFOHDQHUDQGPRUH &/,0$7($1'32//87,21
7KHVWDWLVWLFVDUHVREHULQJ7UDQVSRUW HIÀFLHQWWKDQFRDOGHPDQGIRUJDVLV $VLD·VYRUDFLRXVDSSHWLWHIRURLOKDV
FRQVXPHVRIDOOHQHUJ\VRXUFHV DOVRJURZLQJ%XWLWLVDOVRUHODWLYHO\ DGLUHFWQHJDWLYHHIIHFWRQDLUTXDOLW\
EXWDSSUR[LPDWHO\RIWKDWDPRXQW H[SHQVLYH DVZHOODVODUJHVFDOHHQYLURQPHQWDO
RUPLOOLRQWRQVLVIURPSHWUROHXP ´2QHRIWKHFKDOOHQJHVIRUQDWXUDO LPSDFWV$FFRUGLQJWR(6&$3
DFFRUGLQJWRD'HFHPEHUUHSRUW JDVXVHLQ$VLDLVWKDWFRDOLVWRR WUDQVSRUWLVDPDMRUFRQWULEXWRUWR
E\WKH8QLWHG1DWLRQV(FRQRPLFDQG FKHDSµ:XVD\V´&RDOLVWKHRQH JOREDOHPLVVLRQVRIFDUERQGLR[LGH
6RFLDO&RPPLVVLRQIRU$VLDDQGWKH WKDWFDQJLYH\RXFKHDSHUSRZHU,I &2RQHRIWKHNH\FRPSRQHQWVRI
3,&785(&5(',7$)3

3DFLÀF(6&$3ZKLFKXVHG \RXKDYHDFRDOFULVLVIRUDQ\UHDVRQ FOLPDWHFKDQJH$QGLWZLOORQO\JHW

ÀJXUHV³WKHPRVWUHFHQWDYDLODEOH WKHQFRDOSULFHVZLOOJRXS,ISULFHV ZRUVH
*OREDOO\$VLDDFFRXQWVIRURI JRXSQDWXUDOJDVZLOOEHSUHIHUUHGµ &2HPLVVLRQVE\WKHWUDQVSRUW
JOREDOSHWUROHXPFRQVXPSWLRQLQWKH $VZLWKRWKHUIRVVLOIXHOVGHPDQGIRU VHFWRUIURPIXHOFRPEXVWLRQZHUH

ZZZGHYHORSPHQWDVLD -XO\²6HSWHPEHU 'HYHORSPHQW$VLD

 ,5,9.@:,*<90;@

PLOOLRQWRQVLQQHDUO\ DQGGHYHORSPHQWDW(6&$3EDVHGLQ &5266,1*7+(%25'(57KH´0DLWUHH

RIJOREDOHPLVVLRQV:LWKLQWKH
WUDQVSRUWVHFWRUPLOOLRQWRQVRU
ZHUHIURPWKHURDGVXEVHFWRUWKH
RUJDQL]DWLRQUHSRUWV
$FFRUGLQJWRWKH:RUOG(QHUJ\
2XWORRNWKHWUDQVSRUWVHFWRUZLOO
%DQJNRN
2QHRI(6&$3·VPDLQWUDQVSRUW
SURMHFWVLVWKHGHFDGHVROG$VLDQ
+LJKZD\DSODQQHGQHWZRUNRI
NLORPHWHUVRIVWDQGDUGL]HG
URDGZD\VFULVVFURVVLQJ$VLDQ
)ULHQGVKLS([SUHVVµWKHÀUVWGLUHFW
SDVVHQJHUWUDLQEHWZHHQ%DQJODGHVKDQG
,QGLDLQPRUHWKDQ\HDUVOHDYHV'KDND
IRU.RONDWDZLWKSDVVHQJHUVDERDUG
RQ$SULO7KH8QLWHG1DWLRQV
(FRQRPLFDQG6RFLDO&RPPLVVLRQIRU
JURZE\E\DQGWKHWRWDO
HQHUJ\XVHE\WKHVHFWRUZLOOEHDERXW
KLJKHUWKDQFXUUHQWOHYHOV
*LYHQWKHJURZLQJHQHUJ\GHPDQG
$VLDQQDWLRQVZLOOKDYHOLWWOHFKRLFHEXW
WRLQFUHDVHWUDQVSRUWHIÀFLHQF\LIWKH\
ZDQWWRUHGXFHHQHUJ\FRQVXPSWLRQ
DQGJUHHQKRXVHJDVHPLVVLRQVDQDO\VWV
VD\%XWWKH\FDQQRWIRFXVRQEHWWHU
ZD\VRIWUDQVSRUWLQJSHRSOHDWWKH
H[SHQVHRIIUHLJKWZKLFKPD\DFFRXQW
IRUXSWRKDOIRIDOOFRQVXPSWLRQLQ
VRPH$VLDQFLWLHV
´6RPHRIWKHQXPEHUVZH·UHJHWWLQJ
DWWKHPRPHQWIURPVWXGLHVGRQH
HOVHZKHUHDUHWKDWLW·VµVD\V
-RKQ0RRQFKLHIRIWUDQVSRUWSROLF\
'HYHORSPHQW$VLD -XO\²6HSWHPEHU
FRXQWULHVZLWKOLQNDJHVWR(XURSH7KH
KLJKZD\SURMHFWZDVLQLWLDWHGLQ
EXWSURJUHVVVORZHGZKHQÀQDQFLDO
DVVLVWDQFHZDVVXVSHQGHGLQ,Q
WKHSODQZDVUHYLWDOL]HG7KH
8QLWHG1DWLRQVDJHQF\LVDOVRZRUNLQJ
RQWKHFRPSOHWLRQRIWKH7UDQV$VLDQ
5DLOZD\ZKLFKFXUUHQWO\KDVQHDUO\
NLORPHWHUVRIURXWHVRSHUDWLQJ
LQFRXQWULHV
7KH7UDQV$VLDQUDLOZD\SURMHFWLV
WKHEDFNERQHRIDUHJLRQZLGHSODQ
WRSURYLGHEHWWHUDFFHVVWRVHDSRUWV
IRUODQGORFNHGFRXQWULHVDQGSURYLGH
RSSRUWXQLWLHVIRULQFUHDVHGWUDGH7KH
UDLOZD\FRXOGVXEVWDQWLDOO\UHGXFH
WUDQVSRUWHQHUJ\FRQVXPSWLRQVD\V
$VLDDQGWKH3DFLÀF(6&$3HQYLVLRQV
D7UDQV$VLDQ5DLOZD\WKDWZRXOGOLQN
FRXQWULHVLQWKHUHJLRQ
%DUU\&DEOHGLUHFWRURI(6&$3·V
WUDQVSRUWGLYLVLRQ
´,QDOOFRXQWULHVLQWKHUHJLRQ
WKHFRDVWDODUHDVKDYHGHYHORSHG
PRUHTXLFNO\GXHWRWKHLUDFFHVV
WRLQWHUQDWLRQDOPDUNHWVDQGWKH
FOXVWHULQJHIIHFWRILQGXVWULHV
DURXQGVHDSRUWVµKHVD\V´:H·UH
HQFRXUDJLQJFRXQWULHVWRXVHPRUH
3,&785(&5(',7$)3
HIÀFLHQWPHDQVRIWUDQVSRUWLQFOXGLQJ
WU\LQJWRLQFUHDVHWKHHIÀFLHQF\DQG
FRPSHWLWLYHQHVVRIUDLOZD\XVHRYHU
WKDWRIURDGVµ
ZZZGHYHORSPHQWDVLD
 $NH\ZD\WRGRWKDW&DEOHVD\V
LVIRU$VLDQFRXQWULHVWRGHYHORSGU\
SRUWVLQLQODQGDUHDVDVDIRFXVIRU
FRQVROLGDWLRQDQGGLVWULEXWLRQVR
WKDWJRRGVDQGGRFXPHQWDWLRQFDQ
EHSURFHVVHGFORVHUWRZKHUHWKH\DUH
SURGXFHGDQGWUDQVSRUWHGE\UDLODV
ZHOODVURDG7KURXJKWKLVSURFHVVGU\
DOVRDGGUHVVLQJVHSDUDWHO\DUDQJHRI
ORJLVWLFVLVVXHVWKDWZRXOGLPSURYH
HIÀFLHQF\DVZHOOµ
$PRQJWKHLGHDVEHLQJSURPRWHGKH
VD\VDUHSODQQLQJGHYHORSPHQWWRKHOS
UHGXFHWUDQVSRUWGLVWDQFHVEULQJLQJ
WRJHWKHUWKHSODQQLQJRISURGXFWLRQDQG
GLVWULEXWLRQSRLQWVIRUIUHLJKWIROORZLQJ
HIÀFLHQF\UHPRYHSDUWLFXODWHPDWWHU
DQGUHGXFHQRLVHSROOXWLRQ7KH35&
PHDQZKLOHKDVEHHQYHU\VXFFHVVIXO
LQLPSOHPHQWLQJD:RUOG%DQNSLORW
SURMHFWWRLQWURGXFH´JUHHQµWUXFNV
LQWKHFLW\RI*XDQJ]KRXQHDU+RQJ
.RQJ&KLQD
7KH:RUOG%DQNUHSRUWVWDWHVWKDW
SRUWVFDQDFWDVDQHFRQRPLFVWLPXOXV
LQWKHVDPHZD\WKDWVHDSRUWVGRLQ
FRDVWDODUHDVFUHDWLQJGHPDQGDQG
PDNLQJUDLOPRUHFRPSHWLWLYH
&DEOHVD\VWKHHVWDEOLVKPHQWRID
QHWZRUNRIGU\SRUWVZLOODOVRPDNH
WUXFNWUDQVSRUWPRUHHIÀFLHQWVR
´LQVWHDGRIJRLQJRQHZD\IXOODQGWKH
RWKHUZD\HPSW\«WUXFNLQJVHUYLFHV
FDQEHRUJDQL]HGWRSLFNXSUHWXUQ
ORDGVDQGWUDYHOERWKZD\VIXOO:H·UH
.//2(')'3'3 .3)'
'
WKHSRVLWLYHH[DPSOHVLQ(XURSH
LQFUHDVLQJWKHXVHRIZDWHUWUDQVSRUWLQ
ULYHUDQGFRDVWDODUHDVFRQVROLGDWLQJ
ORDGVLQWRELJJHUXQLWVWRUHGXFHWKH
QXPEHURIWULSVUHGXFLQJHPLVVLRQV
WKURXJKLPSURYHGYHKLFOHGHVLJQ
DQGPDLQWHQDQFHDQGLQWURGXFLQJ
DOWHUQDWLYHVWRGLHVHOIRUWUXFNVDQG
EXVHVDVZHOODVHOHFWULFDQGK\EULGFDUV
-DSDQIRUH[DPSOHKDVGHYHORSHG
QHZWHFKQRORJLHVWRLQFUHDVHHQJLQH
PRUHWKDQRQHWKLUGRIWKHELOOLRQ
LQDGGLWLRQDO\HDUO\LQYHVWPHQW
QHHGHGIRUHQHUJ\HIÀFLHQF\LQ$VLD
PXVWJRWRWKHWUDQVSRUWVHFWRUZKLFK
DOVRLQTXLUHVÀQDQFLDOLQFHQWLYHV
IRUFRQVXPHUVWRVKLIWWRPRUHIXHO
HIÀFLHQWYHKLFOHV
0RRQRI(6&$3VD\VRWKHU
LQGLYLGXDOFKRLFHVLQFOXGLQJVLPSOH
WKLQJVVXFKDVQRWUHYYLQJWKHHQJLQH
RI\RXUFDUSXPSLQJWKHEUHDNVOHVV
HVSLWHWKHEHQHÀWVRI
UDLOWUDQVSRUW³UHGXFHG
HQHUJ\FRQVXPSWLRQ
DQGEHWWHUORJLVWLFV³
,QGRQHVLDLVLQYHVWLQJLQPRUHWROO
URDGVEULGJHVDQGKLJKZD\VWKDQ
UDLOURDGWUDFNVVD\V<RJD$GLZLQDUWR
DWUDQVSRUWVSHFLDOLVWZLWKWKH,QVWLWXWH
IRU7UDQVSRUWDWLRQDQG'HYHORSPHQW
3ROLF\LQ-DNDUWD
7KHQDWLRQ·VUDLOZD\QHWZRUNKDV
EHHQVKULQNLQJIRUGHFDGHV$FFRUGLQJ
WRGDWDIURPWKH,QGRQHVLDQ0LQLVWU\
RI7UDQVSRUWDWLRQ·VGLUHFWRUDWHJHQHUDO
RIWUDLQVHUYLFHVRQO\DERXWRI
,QGRQHVLD·VNLORPHWHUVRIUDLOZD\
WUDFNVZHUHLQXVHLQODWH
´7KHUH·VQRWUXVWLQUDLOGHYHORSPHQW
DQ\PRUH$VZHKDYHVHHQRYHU
WKHODVWGHFDGHQRPHDVXUHVKDYH
EHHQLPSOHPHQWHGWRLPSURYHUDLO
SHUIRUPDQFHµ$GLZLQDUWRVD\V´7ROO
URDGVXVHPRUHHQHUJ\EXWWKH\DUH
VHHQDVEHWWHUEHFDXVHWKH\·UHIDVWHUµ
7RLWVFUHGLW,QGRQHVLDLVWU\LQJ
3,&785(&5(',7$)3
WRLQWURGXFHDOWHUQDWLYHIXHOVIRU
LWVSXEOLFWUDQVSRUWV\VWHPV,QWKH
FDSLWDO-DNDUWDWKHEXVHVWKDWSO\WKH
UDSLGEXVZD\V\VWHPDUHSRZHUHGE\
ZZZGHYHORSPHQWDVLD
FRPSUHVVHGQDWXUDOJDV&1*DQGWKH
FLW\DGPLQLVWUDWLRQKDVLVVXHGDE\ODZ
PDQGDWLQJWKDWDOOSXEOLFWUDQVSRUW
YHKLFOHVLQFOXGLQJWD[LVVZLWFKWR
&1*RUOLTXLGSHWUROHXPJDVE\
7KHUHLVRQO\RQHSUREOHPWKH
SXEOLFWUDQVSRUWFRPSDQLHVZLOO
QHYHUEHDEOHWRPDNHWKHGHDGOLQH
%XWWKDWLVQRWQHFHVVDULO\WKHLUIDXOW
VD\V5HVWLWL6HNDUWLQLWKH,QVWLWXWH
IRU7UDQVSRUWDWLRQDQG'HYHORSPHQW
3ROLF\·VGHSXW\GLUHFWRU
6KHVD\VWKHLQIUDVWUXFWXUHQHHGHG
IRU&1*SRZHUHGYHKLFOHVVXFKDV
VHUYLFHVWDWLRQVDQGVSHFLDOL]HGDXWR
UHSDLUJDUDJHVDUHQRWLQSODFH,QWKH
VWKHUHZHUHVHUYLFHVWDWLRQV
LQ-DNDUWDVHOOLQJ&1*EXWWRGD\ ),567&20(),5676(59('
WKHUHDUHRQO\EHFDXVHRIWKHKLJK $SDVVHQJHUORRNVRXWWKHZLQGRZRIDQ
SULFHRIHOHFWULFLW\WRUXQWKHPDQGWKH RYHUFURZGHGWUDLQOHDYLQJ-DNDUWD2QO\
XQFHUWDLQ&1*VXSSO\ DERXWRI,QGRQHVLDҋVNLORPHWHUV
´7RGD\WKH\ZRXOGQHHGGR]HQVRU RIUDLOZD\WUDFNVZHUHLQXVHLQODWH
KXQGUHGVRI>&1*@VWDWLRQVµWRPHHW
GHPDQGVKHVD\V
,WLVLQFRQFHLYDEOHWKDW-DNDUWDZLOO SXEOLFWUDQVSRUWPLQLEXVHVLQWKH:HVW
JHWWKRVHVWDWLRQVDQ\WLPHVRRQVKH -DYDFLW\RI%RJRUEXWWKHFRQYHUWHG
VD\V(DUOLHUWKLV\HDU,QGRQHVLD·V YHKLFOHVFRQWLQXHWRVLWLGOHLQDSDUNLQJ
0LQLVWU\RI7UDQVSRUWDWLRQGRQDWHG ORWEHFDXVHWKHORFDO&1*VHUYLFH
DERXW&1*FRQYHUVLRQNLWVIRU VWDWLRQGRHVQRWKDYHDQ\&1*Q
-XO\²6HSWHPEHU 'HYHORSPHQW$VLD
 ,5,9.@:,*<90;@
VPRRWKO\SXOOLQJDZD\IURPDWUDIÀF
OLJKWRUVWRSVLJQDQGRIFRXUVHXVLQJ
SXEOLFWUDQVSRUWVDYHJDVROLQH
´,IZH·UHJRLQJWRKDYHDQLPSDFW
RQUHGXFLQJHQHUJ\LQJHQHUDOWKHUH·V
DQHGXFDWLRQDOSURFHVVUHTXLUHGLQ
PRYLQJSHRSOHDQGJRRGVDURXQGµ
0RRQVD\V´:HDUHH[WUHPHO\ZDVWHIXO
LQWHUPVRIWKHNLQGVRIFDUVZHEX\LQ
WHUPVRIWKHZD\ZHGULYHDFDUµ
´:HFRXOGHDFKUHGXFHRXU
FRQVXPSWLRQE\ZLWKRXWDQ\
DGYHUVHLPSDFWVRQRXUVWDQGDUGV
RIOLYLQJµKHVD\V´7KHUH·VDQ
RSSRUWXQLW\RXWWKHUHIRULQGLYLGXDOV
WRPDNHDELJFRQWULEXWLRQE\PDNLQJ
V\VWHPDQGLQWKHORQJWHUP\RXUHDOO\
KDYHDPRWLYDWLRQIRUFRDOJDVLÀFDWLRQ
´3ULFHLVDGULYLQJ DQGFOHDQFRDOWHFKQRORJ\³LW
IRUFHWRVWLPXODWH JHQHUDWHVHOHFWULFLW\DWWKHVRXUFHRI
WKHFRDOUDWKHUWKDQPRYLQJWKHFRDO
HQHUJ\HIILFLHQF\ WRWKHIDFWRULHV,W·VHDVLHUWRPRYH
LPSURYHPHQWV HOHFWULFLW\RYHUOLQHVWKDQFRDORYHU
GLVFRXUDJHHQHUJ\ UDLOZD\Vµ
%XWORRNLQJDWWRGD\WKH35&LVLQDQ
ZDVWHPLWLJDWH HQYLDEOHSRVLWLRQEHFDXVHRIPDVVLYH
UHERXQGDIIHFWVDQG QDWLRQZLGHLQIUDVWUXFWXUHSURMHFWV
HQFRXUDJHFOHDQHQHUJ\ LQFOXGLQJFRQVWUXFWLRQRIURDGV
UDLOZD\VKLJKVSHHGWUDLQVDLUSRUWV
WHFKQRORJLHVµ DQGXUEDQPDVVUDSLGWUDQVLWV\VWHPV
´,QWHUPVRISURGXFWLYLW\ZKHUH\RX

"#-"&" DUHGHÀQLQJLQFUHPHQWDOLQFUHDVHVLQ
JRRGGHFLVLRQVµ
+80$175$163257
%XWPRUH$VLDQJRYHUQPHQWVERWK
QDWLRQDODQGORFDODOVRQHHGWRVWDUW
WKLQNLQJRXWVLGHWKHER[LQSDUWLFXODU
ZLWKKXPDQWUDQVSRUW:KLOHVRPH
$VLDQPHJDFLWLHVKDYHDGYDQFHG
LQWHJUDWHGPDVVUDSLGWUDQVLWV\VWHPV
RWKHUVGRQRWHYHQKDYHDVXEZD\
V\VWHP6LQJDSRUHKDVDQDWLRQDOSROLF\
OLPLWLQJWKHQXPEHURISULYDWHO\RZQHG
FDUVRQWKHURDGDQGDOVRKDVURDG
SULFLQJLQFHUWDLQDUHDVRIWKHLVODQG
VWDWHERWKRIZKLFKHQFRXUDJHWKHXVH
RILWVSXEOLFWUDQVSRUWV\VWHP
%XWWUDQVSRUWDQDO\VWVVD\WKDW
XQUHOLDEOHSXEOLFWUDQVSRUWRQO\
HQFRXUDJHVSHRSOHWRGULYHWKHLUFDUV
DQGPRWRUF\FOHVLQVWHDGRIWDNLQJ
WKHEXVRUVXEZD\,QWKH,QGRQHVLDQ
FDSLWDORI-DNDUWDIRUH[DPSOHRQO\
RISHRSOHXVHSXEOLFWUDQVSRUW
ZKLOHXVHSULYDWHYHKLFOHV
DFFRUGLQJWRWKH,QGRQHVLDQ&RQVXPHU
3URWHFWLRQ)RXQGDWLRQZKLFKVD\VWKDW
WKHUHYHUVHVKRXOGEHWUXH
7KH:RUOG%DQNUHSRUWVD\VWKDWLQ
(DVW$VLDQJRYHUQPHQWVVSHQW
ELOOLRQRQIRVVLOIXHOVXEVLGLHVIRU
LQGXVWULHVDQGPRWRULVWVZKLFKUXQV
FRXQWHUWRLWVFDOOVIRUIXHOWD[DWLRQRUD
FDUERQWD[DQGRWKHUPHDVXUHVWRUHGXFH
WUDQVSRUWUHODWHGHQHUJ\GHPDQG
´7KHHQHUJ\SULFHLVDNH\
GHWHUPLQDQWRIHQHUJ\IXWXUHµ
'HYHORSPHQW$VLD -XO\²6HSWHPEHU
WKHUHSRUWVD\V´3ULFHLVDGULYLQJ
IRUFHWRVWLPXODWHHQHUJ\HIÀFLHQF\
LPSURYHPHQWVGLVFRXUDJHHQHUJ\
ZDVWHPLWLJDWHUHERXQGDIIHFWVDQG
HQFRXUDJHFOHDQHQHUJ\WHFKQRORJLHVµ
:KHQLWFRPHVWREXLOGLQJ
LQIUDVWUXFWXUHXVLQJDOWHUQDWLYH
VRXUFHVRIHQHUJ\SURGXFLQJHOHFWULF
FDUVDQGPDQ\RWKHUHQHUJ\VDYLQJ
SURJUDPVSURJUHVVLQ$VLDLVXQHYHQ
EHFDXVHVRPHGHYHORSLQJFRXQWULHVDUH
DKHDGRIRWKHUV&DVHVLQSRLQWDUHWKH
35&,QGLDDQG,QGRQHVLDWKHUHJLRQ·V
WKUHHEHVWSHUIRUPLQJHFRQRPLHVLQ
³DQGDPRQJWKHZRUOG·VWRS
JUHHQKRXVHJDVHPLWWHUV
$1(1'/(667+,567
)RULWVSDUWWKH35&KDVDVHHPLQJO\
HQGOHVVWKLUVWIRURLOWRGULYHLWV
HFRQRP\5REHUW%URDGIRRWKHDG
RIWKH3ROLWLFDODQG(FRQRPLF5LVN
&RQVXOWDQF\LQ+RQJ.RQJ&KLQD
VD\V\HDUVDJRWKH35&ZDVDQHWRLO
H[SRUWHUEXWZLOOHYHQWXDOO\VXUSDVV
WKH8QLWHG6WDWHVDVWKHZRUOG·VOHDGLQJ
FRQVXPHU
7KH35&KRZHYHUDOVRKDVDORQJ
WHUPVWUDWHJ\WRZHDQLWVHOIRIIRIRLO
KHVD\V
´2QHWKLUGRI&KLQD·VWUDLQV\VWHPLV
WDNHQXSPRYLQJFRDO7KLVUHDOO\WLHV
XS\RXUWUDLQV\VWHPµ%URDGIRRWVD\V
´7KDW·VZK\WKH\·UHSXWWLQJLQDJULG
QDWLRQDOLQFRPH\RX·UHJRLQJWRÀQG
WKDWLQ6RXWKHDVW$VLDLWUXQVDW
WR,Q&KLQDLW·Vµ%URDGIRRW
VD\V´7KDWGRHVQ·WPHDQWKH&KLQHVH
IDFWRU\ODERUHUPRYHVWZLFHDVIDVW
%XWLI\RXORRNDW&KLQDWKHUHDVRQLW
KDVJURZQVRUDSLGO\LVWKHUH·VEHHQD
GLVSURSRUWLRQDWHDPRXQWRILQYHVWPHQW
LQLQIUDVWUXFWXUHµ
6DGO\WKHRSSRVLWHFDQEHVDLG
DERXW,QGLD$URXQGRIWKH
FRXQWU\·VWRWDOHQHUJ\VXSSO\LVXVHG
LQWUDQVSRUWEXWXQOLNHWKH35&
ZKLFKLVFRQVWUXFWLQJUDLOZD\VPDVV
UDSLGWUDQVLWDQGRWKHUWUDQVSRUW
LQIUDVWUXFWXUH,QGLDLVODJJLQJIDU
EHKLQG$VLDQ(QHUJ\,QVWLWXWH·V
&KDZODVD\V
´7UDQVSRUWZRXOGEHRQHRIWKH
ELJJHVWHQHUJ\FRQVXPHUVLQDOO
RIWKHVH$VLDQFRXQWULHVPRVWO\
SHWUROHXPµVKHVD\V´7KHVHDUH
VWURQJDUJXPHQWVIRUWKHFDVHWRORRN
IRUDOWHUQDWLYHVLQWKHWUDQVSRUWVHFWRU
DQGWRPDNHLWPRUHHIÀFLHQW
´,I\RXFRPSDUH,QGLDZLWKRWKHU
(DVW$VLDQFRXQWULHVLQIUDVWUXFWXUHLV
GHÀQLWHO\KLJKRQWKHSULRULW\OLVWDQG
JHWWLQJSXEOLF²SULYDWHSDUWQHUVKLSVLV
RQHRIWKHPRVWLPSRUWDQWPHDQVWR
DFKLHYHWKHUHTXLUHGLQYHVWPHQWVµVKH
VD\V´7KHUHLVODFNRISROLF\FODULW\
LQ,QGLD7KHQRIFRXUVHWKHUHDUH
DGPLQLVWUDWLYHERWWOHQHFNVDQGRQO\
JRYHUQPHQWGULYHQJURZWKLVQRW
VXIÀFLHQW
ZZZGHYHORSPHQWDVLD
 02725&,7</()79HQGRUVVHOOERRNV
WRPRWRULVWVLQ0XPEDL5RDG,QGLD
(YHU\\HDUDFURVV$VLDPLOOLRQVRI
SHRSOHJUDGXDWHIURPSXVKFDUWVDQG
ELNHVWRPRWRUELNHVDQGFDUVLQFUHDVLQJ
WUDIÀFDQGSROOXWLRQ

´<RXQHHGWKHSULYDWHVHFWRUFRPLQJ
LQEXWWKH\QHHGFODULW\WKH\QHHG
SUHGLFWDELOLW\LQWKHV\VWHPZKLFK
LVQRWWKHUHµVKHVD\V´7KDWZRXOG
EHRQHRIWKHUHDVRQVWKDWZHKDYHQ·W
EHHQDEOHWRVHHDVPDQ\LQYHVWPHQWV
ÁRZLQJµ
&KDZODQRWHVWKDWWKHUHDUHORQJ
VWDQGLQJSODQVWREXLOGGHGLFDWHG
IUHLJKWUDLOZD\FRUULGRUVDFURVV,QGLD
JRLQJHDVW²ZHVWDQGQRUWK²VRXWK
EXWWKH\KDYHQRWJRWRIIWKHJURXQG
EHFDXVHWKH*RYHUQPHQWRI,QGLD
FDQQRWDWWUDFWVXIÀFLHQWSULYDWHVHFWRU
SDUWLFLSDWLRQ
$0$-25+85'/(
'HVSLWHWKHFKDOOHQJHVVROXWLRQVDUH
EHLQJGLVFXVVHG7KH$VLD3DFLÀF
VHFXULW\WRSURWHFWRLOVKLSPHQWVDW
VHDDQHPHUJHQF\LQIRUPDWLRQVKDULQJ
V\VWHPDQGHQFRXUDJLQJFRXQWULHVWR
KDYHHPHUJHQF\SODQVLQSODFHWRFRSH
ZLWKHQHUJ\GLVUXSWLRQV
/RQJWHUPVWUDWHJLHVLQYROYH
HQFRXUDJLQJIXHOGLYHUVLÀFDWLRQ
HVSHFLDOO\ZLWKQDWXUDOJDV2WKHU
ORQJWHUPVWUDWHJLHVLQFOXGHVKDULQJ
WHFKQRORJ\DQGKHOSLQJGHYHORSLQJ
FRXQWULHVZLWKÀQDQFLQJUHVHDUFK
DQGH[SORUDWLRQDQGORZHULQJWUDGH
EDUULHUV6RPHQDWLRQVDUHDOVR
VWRFNSLOLQJVWUDWHJLFUHVHUYHVRIRLODQG
DFTXLULQJHTXLW\VWDNHVLQRLODQGJDV
ÀHOGV
'DYLG'HHVHDSROLWLFDOVFLHQFH
SURIHVVRUDW%RVWRQ&ROOHJHDQGHQHUJ\
VHFXULW\H[SHUWQRWHVWKDWWKH35&
35,&(+,.($%29($JDVVWDWLRQ
HPSOR\HHFKDQJHVWKHSULFHVRIIXHOLQ
-DNDUWD
´<RX·OOVWXQW\RXURZQJURZWKLI\RX
GRQ·WDWWDFNLWRQDOOIURQWVµKHVD\V
%XWHYHQZLWKVWRFNSLOHVDQG
LQYHVWPHQWVIRVVLOIXHOVDUHDÀQLWH
UHVRXUFH$Q\IXHOGHSHQGHQF\
WKUHDWHQVHQHUJ\VHFXULW\DQGWKHORQJ
WHUPHIIHFWVRIIRVVLOIXHOVFDQWKUHDWHQ
WKHYHU\HFRQRPLHVWKH\DUHEXLOGLQJ
,Q:LQGVRI&KDQJH(DVW$VLD·V
6XVWDLQDEOH(QHUJ\)XWXUHWKH:RUOG
%DQNXUJHVJRYHUQPHQWVWRWDNH
LPPHGLDWHVWHSVWRWUDQVIRUPWKHLU
HQHUJ\VHFWRUVWRZDUGFOHDQHU
UHQHZDEOHDQGKLJKHUHIÀFLHQF\
HQHUJ\VRXUFHV$QGLQDFDXWLRQDU\
QRWHWKHUHSRUWHVWLPDWHVWKDW(DVW$VLD
QHHGVELOOLRQD\HDULQDGGLWLRQDO
LQYHVWPHQWWRUHDFKD´VXVWDLQDEOH
HQHUJ\JURZWKSDWKµGHVFULELQJWKH
(FRQRPLF&RRSHUDWLRQ$3(&IRUXP KDVEHHQGLYHUVLI\LQJLWVIXHOPL[+H ÀJXUHDVD´PDMRUKXUGOHµ
KDVGHYHORSHGDIUDPHZRUNIRUVKRUW VD\VWKH35&LVDOVRVXSSRUWLQJPRUH ´7KHZLQGRZRIRSSRUWXQLW\LV
3,&785(&5(',7$)3

DQGORQJWHUPHQHUJ\VWUDWHJLHVIRU H[SORUDWLRQZRUOGZLGHDQGEHFRPLQJ FORVLQJIDVWDVGHOD\LQJDFWLRQZRXOG

HQHUJ\VHFXULW\6KRUWWHUPVWUDWHJLHV DQLQYHVWRULQRYHUVHDVUHÀQHULHVLQDQ ORFNWKHUHJLRQLQWRORQJODVWLQJKLJK
LQFOXGHPRUHWUDQVSDUHQF\LQWKH DWWHPSWWRVHFXUHDVWHDG\VXSSO\RI FDUERQLQIUDVWUXFWXUHµWKHUHSRUW
JOREDORLOPDUNHWEHWWHUPDULWLPH HQHUJ\ VD\VQ

ZZZGHYHORSPHQWDVLD -XO\²6HSWHPEHU 'HYHORSPHQW$VLD

 6--;/,:/,3-
&ULVLV(FRQRPLFV
$&UDVK&RXUVHLQWKH)XWXUH
RI)LQDQFH
%\1RXULHO5RXELQLDQG6WHSKHQ0LKP
7KH3HQJXLQ3UHVV0D\
(
FRQRPLVW1RXULHO5RXELQLZKR
SUHGLFWHGWKHFXUUHQWFULVLVLQ
GHWDLODVHDUO\DVUHYHDOV
KLVPHWKRGVIRUHFRQRPLF
IRUHFDVWLQJLQDERRNFRDXWKRUHGE\
6WHSKHQ0LKPDSURIHVVRURIHFRQRPLF
KLVWRU\DQGDMRXUQDOLVW
1LFNQDPHG´'U'RRPµ5RXELQL
GHSDUWVIURPKLVXVXDOO\SHVVLPLVWLF
/RVLQJ&RQWURO
7KH(PHUJLQJ7KUHDWVWR:HVWHUQ
3URVSHULW\
%\6WHSKHQ'.LQJ<DOH8QLYHUVLW\
3UHVV0D\
,
Q/RVLQJ&RQWURO6WHSKHQ'.LQJ
WKHJOREDOFKLHIHFRQRPLVWDW
+6%&SDLQWVDEOHDNVFHQDULRIRU
WKH:HVWXQOHVVSROLF\PDNHUVVLW
'HYHORSPHQW$VLD -XO\²6HSWHPEHU
VWDQFHE\RIIHULQJVROXWLRQVWRWRGD\·V
HFRQRPLFSUREOHPV&RPELQLQJ
KLVWRULFDODQDO\VLVDQGLQWHUQDWLRQDO
HFRQRPLFVKHH[SODLQVWKDWÀQDQFLDO
FDWDFO\VPVDUHSUHGLFWDEOHDQG
SUHYHQWDEOH
7KHDXWKRUVSRLQWRXWWKHOHVVRQV
WKDWQHHGWREHOHDUQHGIURPSUHYLRXV
FULVHVLQRUGHUWRXQGHUVWDQGWKH
LQVWDELOLW\RIWKHJOREDOÀQDQFLDOV\VWHP
DQGUHIRUPLW
5RXELQLLVDSURIHVVRURIHFRQRPLFV
DW1HZ<RUN8QLYHUVLW\·V6WHUQ
6FKRRORI%XVLQHVVDQGWKHIRXQGHU
DQGFKDLUPDQRI5RXELQL*OREDO
(FRQRPLFVDFRQVXOWLQJÀUP+HKDV
H[WHQVLYHVHQLRUSROLF\H[SHULHQFH
KDYLQJVHUYHGIURPWRLQWKH
:KLWH+RXVHDQGWKH867UHDVXU\DQG
DGYLVHVFHQWUDOEDQNHUVDURXQG
WKHZRUOG
0LKPZULWHVRQHFRQRPLFDQG
KLVWRULFDOWRSLFVIRUYDULRXVSXEOLFDWLRQV
LQFOXGLQJ7KH1HZ<RUN7LPHV0DJD]LQH
DQG7KH%RVWRQ*OREH+HZDVWKH
+DUYDUG1HZFRPHQ3RVWGRFWRUDO
XSDQGWDNHQRWLFHRIWKHVKLIWLQJWLGHV
RIHFRQRPLFSRZHULQWKHZRUOG+H
SRLQWVRXWWKDWWKHHPHUJLQJPDUNHWV
LQ$VLDDQGRWKHUSDUWVRIWKHZRUOG
DUHJURZLQJVWURQJHUZKLOHWKH:HVW
LVKREEOHGE\GHSHQGHQFHRQULVN\
ÀQDQFLDOVHUYLFHVSRRUUHJXODWLRQ
FRQVXPHUV·SHQFKDQWIRUOLYLQJEH\RQG
WKHLUPHDQVDQGWKHHURVLRQRIWKH86
GROODU·VHFRQRPLFFORXW
.LQJKDVZULWWHQRQJOREDOLVVXHV
LQFOXGLQJWKHFXUUHQF\RIWKH3HRSOH·V
5HSXEOLFRI&KLQDGHPRJUDSKLFV
DQGWKHGHEWEXUGHQRI:HVWHUQ
JRYHUQPHQWV+HLVDUHJXODU
FRQWULEXWRUWRWKH/RQGRQ,QGHSHQGHQW
DQGPDNHVIUHTXHQWDSSHDUDQFHVRQ
WHOHYLVLRQDQGUDGLR+HKDVSURYLGHG
ERWKZULWWHQDQGRUDOHYLGHQFHRQ
JOREDOL]DWLRQWRWKH8QLWHG.LQJGRP·V
+RXVHRI&RPPRQV7UHDVXU\6HOHFW
)HOORZLQ%XVLQHVV+LVWRU\IURPWR
$QDVVRFLDWHSURIHVVRURIKLVWRU\
DWWKH8QLYHUVLW\RI*HRUJLDKHWHDFKHV
FRXUVHVRQ$PHULFDQSROLWLFDOFXOWXUDO
DQGHFRQRPLFKLVWRU\
´«HVVHQWLDOUHDGLQJIRUDQ\RQH
LQWHUHVWHGLQJHWWLQJDFULVSLI
RSLQLRQDWHGRYHUYLHZRIKRZWKH
JOREDOÀQDQFLDOV\VWHPVHL]HGXSLQ
WKHIDOORIDQGZKDWPD\KDSSHQ
LQWKHPRQWKVDQG\HDUVWRFRPHLI
VHULRXVUHIRUPVDQGQHZUHJXODWLRQV
DUHQRWHPEUDFHG,QVWHDGRILPSRVLQJ
DGRFWULQDLUHWKHRU\XSRQWKHIDFWV
0U5RXELQLHPSOR\VDQHFOHFWLF
FRPPRQVHQVHDSSURDFKWRKLVWRU\
SLFNLQJjODFDUWHIURPWKHWKLQNLQJ
RIVXFKGLVSDUDWHHFRQRPLVWVDV
-RKQ0D\QDUG.H\QHVDQG-RVHSK
6FKXPSHWHUµ³0LFKLNR.DNXWDQL7KH
1HZ<RUN7LPHV
´«DULJRURXV\HWKLJKO\UHDGDEOH
ORRNDWZK\ERRPVDQGEXVWVRFFXU
DQGKRZWRNHHSWKHPIURPZUHDNLQJ
KDYRFRQWKHUHDOHFRQRP\µ³-DPHV
3UHVVOH\%ORRPEHUJQ
&RPPLWWHHDQGWKH+RXVHRI/RUGV
(FRQRPLFV&RPPLWWHH
´0U.LQJOD\VRXWKLVDUJXPHQWV
LQDFFHVVLEOHDQGHQJDJLQJSURVH«
,WLVKDUGWRGLVSXWH0U.LQJ·VEDVLF
PDFURHFRQRPLFLQVWLQFWV³WKDWWKH
HIIHFWHPHUJLQJHFRQRPLHVDUHKDYLQJ
RQWKHZRUOGHFRQRP\LVFRQVLGHUDEOH
DQGLVHDVLO\XQGHUHVWLPDWHGE\
SROLF\PDNHUVµ³7KH(FRQRPLVW
´,WLVWKRURXJKO\UHVHDUFKHGGHWDLOHG
DQGWKDQNVWR.LQJ·VKLVWRULFDOVZHHS
SODFHVRXUFXUUHQWHFRQRPLFZRHV
ÀUPO\LQFRQWH[W,WDOVRKDVVRPHRI
WKHGLVDGYDQWDJHVRIEHLQJZULWWHQE\
DQHFRQRPLVW«.LQJSUHVXPHVDORWRI
NQRZOHGJHRQWKHSDUWRIWKHUHDGHU«
1HYHUWKHOHVVWKLVLVDQLPSRUWDQW
YROXPHEULQJLQJWRJHWKHUVHULRXV
DQDO\VLVDQGGDWDWRPDNHLWVFDVHµ³
7KH(FRQRPLVWQ
ZZZGHYHORSPHQWDVLD
7KH3OXQGHUHG3ODQHW /HDGLQJZLWK&XOWXUDO
:K\:H0XVWċDQG+RZ:H&DQċ0DQDJH1DWXUHIRU
,QWHOOLJHQFH
*OREDO3URVSHULW\ 7KH1HZ6HFUHWWR6XFFHVV
%\3DXO&ROOLHU2[IRUG8QLYHUVLW\3UHVV0D\ %\'DYLG/LYHUPRUH$0$&20
 2FWREHU

$ 7
XWKRURIWKH7KH%RWWRP%LOOLRQ3DXO&ROOLHUWDFNOHV KHERRN
WKHJOREDOPLVPDQDJHPHQWRIQDWXUHLQKLVQHZ SUHVFULEHV
ERRN7KH3OXQGHUHG3ODQHWPDNHVDFDVHIRUWKH DIRXUSDUW
UHVSRQVLEOHVWHZDUGVKLSRI(DUWK·VQDWXUDOUHVRXUFHVVRWKDWWKHVH SODQRQ
EHQHÀWHYHQWKHSRRUHVWFRXQWULHV+HSURSRVHVLQWHUQDWLRQDOVWDQGDUGVDQG KRZWREHFRPHPRUH
SROLFLHVWKDWZRXOGLPSURYHWKHPDQDJHPHQWRIUHVRXUFHVUDLVHZRUOGIRRG DGHSWDWPDQDJLQJ
VXSSO\DQGDGGUHVVFOLPDWHFKDQJHLVVXHV DFURVVFXOWXUHV
&ROOLHULVSURIHVVRURIHFRQRPLFVDQGGLUHFWRURIWKH&HQWHUIRUWKH6WXG\RI ZKHWKHUDWWKHORFDO
$IULFDQ(FRQRPLHVDW2[IRUG8QLYHUVLW\DQGDIRUPHUGLUHFWRURIGHYHORSPHQW RIÀFHRUDEURDG
UHVHDUFKDWWKH:RUOG%DQN7KH%RWWRP%LOOLRQZRQWKH(VWRULO'LVWLQJXLVKHG%RRN ´/HDGLQJLQWKH
3UL]HWKH$UWKXU5RVV%RRN$ZDUGDQGWKH/LRQHO*HOEHU3UL]H WZHQW\ÀUVWFHQWXU\
´0U&ROOLHUZULWHVWKDWLQH[SORLWLQJUHVRXUFHVZHVKRXOGEHFDUHIXOWRFUHDWH ZRUOGPHDQVPDQHXYHULQJWKHWZLVWV
PRUHZHDOWKWKDQZHGHVWUR\$Q\WKLQJHOVHLVPHUHO\ORRWLQJWKHIXWXUHIRUWKH DQGWXUQVRIDPXOWLGLPHQVLRQDO
FRQYHQLHQFHRIWKHSUHVHQWµ³7KH(FRQRPLVWQ ZRUOGµ/HDGLQJZLWK&XOWXUDO
,QWHOOLJHQFHDXWKRU'DYLG/LYHUPRUH
ZULWHV´7KHFRQWLQXDOO\VKLIWLQJ
%XLOGLQJ6RFLDO%XVLQHVV ODQGVFDSHRIJOREDOOHDGHUVKLSFDQEH
GLVRULHQWLQJH[SHULHQFHDQGLQWXLWLRQ
7KH1HZ.LQGRI&DSLWDOLVPWKDW6HUYHV+XPDQLW\âV0RVW DORQHDUHQRWHQRXJKµ
3UHVVLQJ1HHGV /LYHUPRUHLVWKHH[HFXWLYHGLUHFWRU
%\0XKDPPDG<XQXVZLWK.DUO:HEHU3XEOLF$IIDLUV RIWKH*OREDO/HDUQLQJ&HQWHULQ
0D\ *UDQG5DSLGV0LFKLJDQ+HLVD
YLVLWLQJUHVHDUFKIHOORZDW1DQ\DQJ

0
LFURFUHGLWSLRQHHU0XKDPPDG<XQXVZKRZRQ 7HFKQRORJLFDO8QLYHUVLW\LQ6LQJDSRUH
WKH1REHO3HDFH3UL]HZLWKKLV*UDPHHQ DQGDVHQLRUUHVHDUFKFRQVXOWDQWZLWK
%DQNH[SRXQGVRQKLVYLVLRQRIHQOLJKWHQHGFDSLWDOLVPLQDQHZ WKH&XOWXUDO,QWHOOLJHQFH&HQWHULQ(DVW
ERRN%XLOGLQJ6RFLDO%XVLQHVVZKLFKLVFRDXWKRUHGE\.DUO:HEHU /DQVLQJ0LFKLJDQ
+HGHÀQHV´VRFLDOEXVLQHVVµDVDSURÀWDEOHFRPPHUFLDOHQWHUSULVHWKDWVXSSRUWV /LYHUPRUHKDVSURYLGHGWUDLQLQJ
HFRQRPLFJURZWKDQGPDNHVSURGXFWVDQGVHUYLFHVWKDWSURPRWHDEHWWHUZRUOG DQGFRQVXOWLQJVHUYLFHVWROHDGHUV
+HJLYHVH[DPSOHVRIYLDEOHVRFLDOEXVLQHVVHVDFURVV$VLD6RXWK$PHULFD(XURSH LQFRXQWULHVDFURVV$IULFDWKH
DQGWKH8QLWHG6WDWHV $PHULFDV$VLD$XVWUDOLDDQG
<XQXVZDVERUQLQ&KLWWDJRQJ%DQJODGHVK+HZDVDZDUGHGD)XOEULJKW (XURSH
VFKRODUVKLSWRVWXG\HFRQRPLFVDW9DQGHUELOW8QLYHUVLW\+HEHFDPHKHDGRIWKH ´«H[SODLQVZK\PRGHUQ
'HSDUWPHQWRI(FRQRPLFVDW&KLWWDJRQJ8QLYHUVLW\LQ+HLVWKHIRXQGHUDQG PXOWLQDWLRQDORUJDQLVDWLRQVQHHGWREH
PDQDJLQJGLUHFWRURI*UDPHHQ%DQN JORFDOLQWKHRULJLQDOVHQVHDQGZK\
:HEHULVDZULWHUEDVHGLQ,UYLQJWRQ1HZ<RUN+HDOVRFRDXWKRUHG<XQXV·V WKH\PXVWXQGHUVWDQGWKDW¶7KHUH·V
EHVWVHOOLQJERRN&UHDWLQJD:RUOG:LWKRXW3RYHUW\ UHDOO\QRVXFKWKLQJDVDXQLIRUP
´EHVWDSSUHFLDWHGDVDVHTXHOWR'U<XQXV·VERRN&UHDWLQJD:RUOG JOREDOFXOWXUH·7KLVPHVVDJH
:LWKRXW3RYHUW\6RFLDO%XVLQHVVDQGWKH)XWXUHRI&DSLWDOLVPLQZKLFKKHÀUVW >/LYHUPRUH@VD\VDSSOLHVQRWMXVW
SUHVHQWHGKLVWKHRU\RIDQHZHFRQRP\7KHGLIIHUHQFHLVWKDWWKHDXWKRUQRZ WRPDUNHWLQJEXWWRUHFUXLWLQJDQG
GHFODUHVWKDWVRFLDOEXVLQHVVLVQRORQJHUDGUHDP7KUHH\HDUVODWHU*UDPHHQKDV PDQDJLQJWHDPVRIZRUNHUVLQ
FUHDWHGVRFLDOEXVLQHVVYHQWXUHVZLWKFRUSRUDWLRQVLQFOXGLQJ,QWHO$GLGDV%$6) GLIIHUHQWSDUWVRIWKHZRUOGµ³
DQG'DQRQHPDNHURI'DQQRQ\RJXUWµ³'HYLQ/HRQDUG7KH1HZ<RUN7LPHVQ 7KH(FRQRPLVWQ

ZZZGHYHORSPHQWDVLD -XO\²6HSWHPEHU 'HYHORSPHQW$VLD

 (9;0*3,
$6PDOO+DUG6HOO
0LFURLQVXUDQFHVWUXJJOHVWRWDNHRIIZLWKWKRVHZKRQHHGLWPRVW
,
Q,QGLDLQDUDGLFDOO\QHZ
LQVXUDQFHLQLWLDWLYHZDVODXQFKHG
IRUORZLQFRPH,QGLDQV7KLV
MRLQWYHQWXUHEHWZHHQ1HZ
'HOKLEDVHG0D[,QGLDDQG1HZ<RUN
/LIH,QVXUDQFHLVDOLIHLQVXUDQFHSROLF\
DVZHOODVDORQJWHUPVDYLQJVSURGXFW
&DOOHG0D[9LMD\WKHLUDGFDPSDLJQ
%<0DUJR3IHLII
SD\PHQWVVLQFH0D[/LIHOLQNHGXS
ZLWKWKHQDWLRQDOUHWDLOFKDLQ,6(59
WRDOORZSROLF\KROGHUVWRPDQDJHWKHLU
SROLFLHVDWRILWVVWRUHV
´7KH\·YHUHDOO\GRQHWKHLU
KRPHZRUNµVD\V&UDLJ&KXUFKLOO
PLFURÀQDQFHH[SHUWDWWKH
,QWHUQDWLRQDO/DERXU2UJDQL]DWLRQ
EHUXQRXWRIORFDO´PRPDQGSRS
VKRSVµRURYHUPRELOHSKRQHVWRPDNH
WKHSURGXFWVDVDFFHVVLEOHDVSRVVLEOH
6$)(7<1(7
0D[9LMD\LVDPXFKQHHGHGDQG
LQQRYDWLYHDWWHPSWWRSURYLGHDVDIHW\
QHWWR$VLD·VZRUNLQJSRRU(YHU\\HDU
DPEDVVDGRULVFHOHEULW\LFRQ$PLWDEK ,/2DQGFKDLUPDQRIWKH:RUOG KRPHVLQGHYHORSLQJFRXQWULHVDUH
%DFKFKDQDQDFWRUNQRZQIRUSOD\LQJ %DQN·V&RQVXOWDWLYH*URXSWR$VVLVW VZHSWDZD\E\ÁRRGVRUGHPROLVKHG
DFKDUDFWHUFDOOHG9LMD\LQVHYHUDO
PRYLHV
$SRWHQWLDOFXVWRPHUFRPSOHWHV
DRQHSDJHIRUPSURYLGHVSURRI
RILGHQWLW\DQGSD\VDQHQUROOPHQW
SUHPLXPUDQJLQJIURP5VWR
WKH3RRU&*$3:RUNLQJ*URXS
RQ0LFUR,QVXUDQFH&KXUFKLOO
LVLPSUHVVHGZLWKWKHVLPSOLFLW\
ÁH[LELOLW\DQGHDVHRIDFFHVVWR
LQVXUDQFHDQGWKDWLWFRXOGSRWHQWLDOO\
E\W\SKRRQV'URXJKWVDQGUDLQV
GHVWUR\FURSV7KHEUHDGZLQQHUGLHVRU
WKHVKRSEXUQVGRZQ:LWKOLWWOHRUQR
DFFHVVWRLQVXUDQFHWKHZRUNLQJSRRU
DUHDWFRQVWDQWULVN6XGGHQO\ZLWKRXW
5VWR2YHUWKH\HDU
OLIHRIWKHSROLF\IROORZXSSUHPLXPV
DUHRSWLRQDODQGLQYHVWPHQWVDUH
JXDUDQWHHG,QWKHFDVHRIQDWXUDO
GHDWKWKHFODLPDQWUHFHLYHVWKH
JXDUDQWHHGVXPDVVXUHGDVZHOO
DVWKHDFFRXQWYDOXH,QWKHFDVHRI
DFFLGHQWDOGHDWKWKHFODLPDQWUHFHLYHV
WKHDFFRXQWYDOXHDQGGRXEOHWKH
DPRXQWRIWKHVXPDVVXUHG,QWKHÀUVW
\HDUSROLFLHVZHUHVROGWKH
FRPSDQ\·VDLPLVWRFRYHUPLOOLRQ
KRXVHKROGVE\
&OLHQWVLQUHPRWHUHJLRQVQHHGQRW
WUDYHOJUHDWGLVWDQFHVWRPDNHRUUHFHLYH

029,1*72'5<*5281')DPLOLHV
GLVSODFHGE\DF\FORQHLQ0\DQPDULQ
VKLHOGWKHLUERGLHVIURPWKHUDLQZLWK
ZKDWHYHUEHORQJLQJVWKH\FRXOGVDYH
3,&785(&5(',7$)3

0LFURLQVXUDQFHSURGXFWVZHUHGHVLJQHG
WRSURWHFW$VLDҋVZRUNLQJSRRUIURPWKH
ULVNRIORVLQJWKHLUKRPHVRUPHDQVRI
OLYHOLKRRG

'HYHORSPHQW$VLD -XO\²6HSWHPEHU ZZZGHYHORSPHQWDVLD

 VKHOWHULQFRPHRUIRRGWKH\PXVWVWDUW
IURPVFUDWFKZKLOHWKHLUFRXQWHUSDUWV
LQWKHGHYHORSHGZRUOGZRXOGVLPSO\
UHFRXSWKHLUORVVHVIURPLQVXUDQFH
SODQVDQGPRYHRQ
2QWKHKHHOVRIWKHUXQDZD\
VXFFHVVRIPLFUROHQGLQJRYHUWKH
SDVWGHFDGHVWKHQH[WREYLRXV
VWHSLQWKHPLFURÀQDQFHZRUOGZDV
PLFURLQVXUDQFHIRUWKRVHKRYHULQJ
QHDUWKHSRYHUW\OLQH7KHFRQFHSWLV
UHODWLYHO\QHZKDYLQJEHJXQLQHDUQHVW
LQWKHV)RUDIHZGROODUVD\HDU
ULVNVKDULQJSURGXFWVFKDUDFWHUL]HGE\
ORZSUHPLXPVDQGORZFRYHUDJHOLPLWV
DUHRIIHUHGIRUHYHU\WKLQJIURPOLIH
KHDOWKFDUHDQGGLVDELOLW\WRZHDWKHU
SURSHUW\DJULFXOWXUHOLYHVWRFNDQG
QDWXUDOGLVDVWHULQVXUDQFH´3HRSOH
ZRUNWKHPVHOYHVRXWRISRYHUW\XVLQJ
PLFUROHQGLQJµVD\V'LUN5HLQKDUGRI
WKH*HUPDQUHLQVXUHU0XQLFK5H´DQG
PLFURLQVXUDQFHKHOSVSUHYHQWWKHP
IURPIDOOLQJEDFNLQWRLWµ
:LWKWKDWREYLRXVFRQQHFWLRQ IXWXUHLQFRPHDQGSXOOLQJFKLOGUHQRXW (;75$&$6+$ER\VHOOVFRUQRQ
PLFURLQVXUDQFHLVRIWHQVROGE\ RIVFKRRO³DOORIZKLFKSHUSHWXDWHWKH WKHURDGVLGHLQ$PULWVDU,QGLDDIWHU
PLFURFUHGLWRUJDQL]DWLRQVLQ F\FOHRISRYHUW\ VFKRRO0LFURLQVXUDQFHSURYLGHVD
FRPELQDWLRQZLWKORDQV7KH*UDPHHQ VDIHW\QHWWR$VLDҋVZRUNLQJSRRU
%DQNLQ%DQJODGHVKPLFURÀQDQFH·V )(:7$.(56
ELUWKSODFHDOVRYHQWXUHGLQWRRIIHULQJ $FFRUGLQJWRWKH%LOODQG0HOLQGD ERUURZHU:LWKLQVXUDQFHWKHRSSRVLWH
PLFURKHDOWKLQVXUDQFH,WLVRQHRIWKH *DWHV)RXQGDWLRQOHVVWKDQRI LVWUXH&OLHQWVKDYHWRWUXVWWKDWWKH
PDQ\PRGHOVRIDJURZLQJQXPEHU SHRSOHLQWKHZRUOG·VSRRUHVW LQVXUDQFHFRPSDQ\ZLOODFWXDOO\
RIPLFURLQVXUDQFHVFKHPHVVWDUWHGXS FRXQWULHVKDYHDQ\W\SHRILQVXUDQFH SD\WKHLUFODLP,QSDUWVRIWKHZRUOG
VLQFHWKHHDUO\VDFURVV$VLD6RPH WRSURWHFWWKHPIURPÀQDQFLDOVKRFN ZKHUHSRWHQWLDOFXVWRPHUVDUHRIWHQ
DUHFRPPXQLW\EDVHGZKLOHRWKHUVDUH $FFRUGLQJWRWKH$VLDQ0LFURLQVXUDQFH LOOLWHUDWHDQGIRUPDOGRFXPHQWDWLRQ
OLQNHGWRLQVXUDQFHFRPSDQLHVEDQNLQJ
LQVWLWXWLRQVKHDOWKFDUHSURYLGHUVDQG
HYHQSKDUPDFHXWLFDOÀUPV
:RPHQZKRFRPSULVHRI
WKHZRUOG·VSRRUDFFRUGLQJWRWKH
,/2SDUWLFXODUO\VWDQGWREHQHÀW
IURPPLFURLQVXUDQFH$VFDUHJLYHUV
KRPHPDNHUVDQGLQFUHDVLQJO\
LQFRPHHDUQHUVEXWZLWKOHVVFRQWURO
RISURSHUW\DQGIDFLQJKLJKHUOHYHOV
RISK\VLFDOYLROHQFHZRPHQDUH
SDUWLFXODUO\YXOQHUDEOH,IFULVLVVWULNHV
WKH\PXVWUHVRUWWRXVLQJEXVLQHVV
3,&785(&5(',7$)3
SURÀWVWRGHDOZLWKHPHUJHQFLHV
LQVWHDGRIIRUORQJWHUPLQYHVWPHQWV
VHOOLQJSURGXFWLYHDVVHWVVXFKDV
OLYHVWRFNRUHTXLSPHQWWKHUHE\ORVLQJ
ZZZGHYHORSPHQWDVLD
1HWZRUN$0,1DUHJLRQDOQHWZRUN
RIPLFURLQVXUDQFHSUDFWLWLRQHUVLQ
FROODERUDWLRQZLWKWKH,/2RQO\
PLOOLRQ$VLDQVDUHQRZFRYHUHGE\
PLFURLQVXUDQFHRIWKHPLQ,QGLD
DQGWKH3KLOLSSLQHV
<HWGHVSLWHWKHVHHPLQJO\
REYLRXVDGYDQWDJHVDQGQHHGIRUD
PLFURLQVXUDQFHVDIHW\QHWWKHUHKDYH
EHHQIHZWDNHUV0LFURLQVXUDQFHLV
SURYLQJWREHDKDUGVHOODPRQJWKH
ZRUOG·VSRRU
2QHPDMRUREVWDFOHLVFRQYLQFLQJ
WKHSRRUWRSD\IRUVRPHWKLQJZLWKRXW
DJXDUDQWHHGUHWXUQRULPPHGLDWH
UHZDUGV$QRWKHUGHWHUUHQWLVODFNRI
WUXVW:LWKFUHGLWOHQGHUVPXVWWUXVWWKH
OLNHELUWKDQGGHDWKFHUWLÀFDWHVLV
UDUHQHZVVSUHDGVTXLFNO\ZKHQ
LQVXUDQFHFRPSDQLHVEDONRQSD\RXWV
E\SRLQWLQJWRÀQHSULQWH[FOXVLRQVOLNH
´SUHH[LVWLQJµFRQGLWLRQVDUJXLQJWKDW
SUHPLXPVZHUHQRWSDLGRUWKDWIRUPDO
GRFXPHQWVDUHPLVVLQJ
$QRWKHUVWXPEOLQJEORFNLVWKDW
PLFURLQVXUDQFHSURGXFWVDUHQRW
ÁH[LEOHHQRXJKDQGGRQRWUHÁHFWORFDO
ULVNVDQGFRQFHUQVZKLFKFDQYDU\
IURPWKHKHDOWKRIDÁRFNRIVKHHSLQ
RQHYLOODJHWRHDUWKTXDNHSURWHFWLRQLQ
WKHQH[W$OVRDGPLQLVWUDWLRQLQUHPRWH
DUHDVLVFRVWO\$VZHOODVFROOHFWLQJ
SUHPLXPVÀHOGVWDIIPXVWNHHSWUDFNRI
HYHU\WKLQJIURPQHZERUQFKLOGUHQZKR
-XO\²6HSWHPEHU 'HYHORSPHQW$VLD
 (9;0*3,
DUHSRWHQWLDOEHQHÀFLDULHVWRWKHQHHGV
RIDFOLHQWFODLPLQJKHDOWKFRYHUDJH
DQGGHWHUPLQLQJLIDVSRXVHLVDFWXDOO\
GHFHDVHGZKHQDGHDWKFHUWLÀFDWH
FDQQRWEHSURGXFHG&RQVWDQW
PRQLWRULQJLVUHTXLUHGEXWWRNHHS
SUHPLXPVORZDGPLQLVWUDWLRQFRVWV
PXVWEHNHSWWRDPLQLPXPDVZHOO
:KLOHLWZRXOGVHHPDQDWXUDOÀW
IRUPLFURÀQDQFHLQVWLWXWLRQVWRVHOO
PLFURLQVXUDQFH³WKH\WRRRSHUDWH
LQPLFURLQVXUDQFH·VWDUJHWDUHDVRI
"$ PLOOLRQSROLFLHV
UHPRWHUXUDODUHDVDQGVOXPV³WKH\
ZLWKURXJKO\PLOOLRQKRXVHKROGV
HQUROOHGDQGSD\LQJDWRNHQIHHIRU
40LFURLQVXUDQFH·VQHHG KRVSLWDODQGRWKHUPHGLFDOVHUYLFHV,W
DOVRVHOOVLQVXUDQFHSURGXFWVWKURXJK
IRUODUJHYROXPHLVRQH WKHVWDWHRZQHG$JULFXOWXUH,QVXUDQFH
UHDVRQZK\WKHKLVWRU\ &RPSDQ\RI,QGLD1RQHWKHOHVVWKH
RIPLFURLQVXUDQFH SHQHWUDWLRQRIPLFURLQVXUDQFHLQ,QGLD
UHPDLQVDWDQHVWLPDWHGRIWKHDGXOW
VXFFHVVKDVQRWEHHQ SRSXODWLRQZKLOH/OR\G·VRI/RQGRQ
VWHOODU5 HVWLPDWHVWKHFRXQWU\·VWRWDOPDUNHWIRU
PLFURLQVXUDQFHWREHEHWZHHQDQG
3 "&"$

"#"
- ,QDZD\WKH3HRSOHV5HSXEOLFRI

")6%"
$
DUHXQOLNHO\WRKDYHORFDOL]HGULVN &KLQD35&KDVKDGDORQJKLVWRU\
7
%
PDQDJHPHQWH[SHUWLVHVLQFHEDQNLQJ RIPLFURLQVXUDQFHZLWKWKH$OO&KLQD
LVVLPSO\DFDOFXODWLRQRILQWHUHVWUDWHV
ZKHUHDVPLFURLQVXUDQFHLVFRPSOH[
DQGEDVHGRQSUREDELOLWLHV
,QVXUDQFHDOVRUHTXLUHVDODUJH
SRRORISHRSOHWRVSUHDGWKHÀQDQFLDO
FRQVHTXHQFHVRIVSHFLÀFLQGLYLGXDO
ULVNV´0LFURLQVXUDQFH·VQHHGIRUODUJH
DZLGHVSUHDGLPSDFW´:HKDYHQ·W
UHDOO\ÀJXUHGRXWDJRRGPRGHOµ
0RQLFD%UDQGRIWKHPLFUROHQGLQJ
MXJJHUQDXW$&&,21,QWHUQDWLRQDOWROG
7LPHLQ6HSWHPEHU
)HGHUDWLRQRI7UDGH8QLRQV$&)78
SURYLGLQJOLPLWHGFRYHUDJHWR
PLOOLRQPHPEHUVIRUKHDOWKSURSHUW\
ORVVXQHPSOR\PHQWDQGRWKHUULVNV
%XWFRQWHPSRUDU\PLFURLQVXUDQFH
WRRNURRWLQZLWKWKH&KLQD
,QVXUDQFH5HJXODWRU\&RPPLVVLRQ·V
YROXPHLVRQHUHDVRQZK\WKHKLVWRU\
RIPLFURLQVXUDQFHVXFFHVVKDVQRWEHHQ
VWHOODUµVD\V1HLO'RKHUW\SURIHVVRU
RILQVXUDQFHDQGULVNPDQDJHPHQW
DWWKH:KDUWRQ6FKRRO8QLYHUVLW\RI
3HQQV\OYDQLD
7KHUHLVDYDVWYDULHW\RIGLIIHUHQW
PLFURLQVXUDQFHSODQVLQYDULRXVVWDJHV
RIGHYHORSPHQWDQGVRPHDUHVKRZLQJ
JRRGORFDOVXFFHVVVXFKDV,QGLD·V
*29(510(17,17(59(17,21
6RPHH[SHUWVDUJXHWKDWJRYHUQPHQWV
PXVWVWHSLQWRKHOSDQGSURJUHVVRQ
WKDWIURQWKDVVORZO\EHHQPDGHLQ
WKHSDVWGHFDGH,Q,QGLDDUHYROXWLRQ
LQPLFURLQVXUDQFHWRRNSODFHLQ
ZKHQDVSDUWRI,QGLD·VQDWLRQDOVRFLDO
LQFOXVLRQSODQWRKHOSWKHUXUDOSRRU
LWEHFDPHDOHJDOUHTXLUHPHQWIRUDOO
LQVXUHUVGRLQJEXVLQHVVLQWKHFRXQWU\
&,5&VRFLDOVHFXULW\PRGHOZKRVH
PRWWRLV´JRYHUQPHQWVXSSRUWSHDVDQW
SDUWLFLSDWLRQFRPPHUFLDORSHUDWLRQµ
,WLV´DWDLORUPDGHPXOWLOHYHOUXUDO
LQVXUDQFHV\VWHPZLWKZLGHFRYHUDJHµ
DFFRUGLQJWRLWVFKDLUPDQ:X
'LQJIX´&,5&ZLOOGHYHORSYDULRXV
FXVWRPL]HGSURSHUW\LQVXUDQFH
OLIHLQVXUDQFHDQGRWKHULQVXUDQFH
SURGXFWVDQGHQFRXUDJHFRRSHUDWLRQ
6KUL0DKLOD6HZD6DKDNDUL6(:$
%DQNZKLFKRIIHUVDFKRLFHRIWKUHH
PLFURLQVXUDQFHVFKHPHVFRYHULQJ
GHDWKKHDOWKDQGDVVHWVIRUSRRU
VHOIHPSOR\HGZRPHQ+XVEDQGV
DQGDOOWKHFKLOGUHQLQDIDPLO\DUH
FRYHUHGE\RQHSUHPLXPWRDYRLG
IDPLOLHVKDYLQJWRFKRRVHZKLFKRI
WKHLUFKLOGUHQWRLQVXUH,WLVLQQRYDWLYH
LQWKDWWKHLQVXUDQFHLVLQWHJUDWHG
ZLWK6(:$·VVDYLQJVDFFRXQWVVRWKDW
FOLHQWVFDQXVHDFFXPXODWHGLQWHUHVW
WRSD\SUHPLXPV6WDUWHGLQ
ZLWKFOLHQWV6(:$QRZFRYHUV
QHDUO\ZRPHQPHQDQG
FKLOGUHQ%XWRYHUDOOPLFURLQVXUDQFH
VFKHPHVUHPDLQLVRODWHGDQGSRRUO\
GRFXPHQWHGDQGDUHUDUHO\WDNHQLQWR
DFFRXQWZKHQQDWLRQDOSROLFLHVDQG
SURJUDPVDUHGHVLJQHGWKDWFRXOGKDYH
'HYHORSPHQW$VLD -XO\²6HSWHPEHU
WRIROORZDTXRWDV\VWHPDQGDOORFDWH
DFHUWDLQDPRXQWRIWKHLUEXVLQHVVWR
PLFURLQVXUDQFH)DLOXUHWRFRPSO\
PHDQWÀQHVDQGDSRVVLEOHUHYRNLQJRI
OLFHQVHV&XUUHQWO\PLOOLRQSHRSOHLQ
WKHTXRWDPDUNHWVDUHFRYHUHGXQGHU
OLIHLQVXUDQFHSROLFLHVDQGPRUHWKDQ
PLOOLRQDUHFRYHUHGXQGHUQRQOLIH
LQVXUDQFHDFFRUGLQJWR/OR\G·VRI
/RQGRQ7KHXSVLGHLVWKDWWKHUHKDV
EHHQDUXVKRISURGXFWLQQRYDWLRQOLNH
0D[9LMD\WKHGRZQVLGHLVWKDWLWKDV
EHFRPHHYLGHQWWKDWVRPHLQVXUHUVDUH
RIIHULQJSURGXFWVZLWKOLWWOHYDOXHRU
DUHKDOWLQJVDOHVDVVRRQDVWKHLUTXRWDV
DUHPHW
6LQFHWKH*RYHUQPHQWRI
,QGLDKDVDOVREHHQIXQGLQJVHYHUDO
RILWVRZQPLFURLQVXUDQFHVFKHPHV
LQFOXGLQJDKHDOWKLQVXUDQFHSURJUDP
EHWZHHQWKHJRYHUQPHQWDQGLQVXUDQFH
FRPSDQLHVµ6RPHRIWKHSURGXFWV
FXUUHQWO\RIIHUHGLQSLORWSURMHFWV
LQFOXGHSURGXFWVIRUPLJUDQWZRUNHUV
HOGHUO\SHRSOHDQGVWXGHQWORDQV
*5($7327(17,$/
,ILQVXUDQFHRQO\ZRUNVZLWKODUJH
QXPEHUVRIFOLHQWVWKHUHZRXOGVHHPWR
EHJUHDWSRWHQWLDOLQWKHVKHHUQXPEHU
RISRRUSHRSOHZRUOGZLGH³/OR\G·V
RI/RQGRQHVWLPDWHVWKHORZLQFRPH
PDUNHWPHDVXUHGE\WKHQXPEHURI
SRWHQWLDOFOLHQWVWREHELOOLRQWR
ELOOLRQSRWHQWLDOFXVWRPHUV
$FFRUGLQJWR0LFKDHO0F&RUG
GLUHFWRURIFRQVXOWDQF\0LFURLQVXUDQFH
&HQWUHLQWKH8QLWHG6WDWHVQXPEHUVDUH
JUDGXDOO\LQFUHDVLQJ+HHVWLPDWHVWKDW
LQWKHZRUOG·VSRRUHVWFRXQWULHVWKH
ZZZGHYHORSPHQWDVLD
Barely Covered ,/2SUHVHQWLQJDPLOOLRQJUDQWWR
FUHDWHWKH0LFURLQVXUDQFH,QQRYDWLRQ
Millions of poor across Asia are covered by life microinsurance,
)DFLOLW\GHVLJQHGWRVWLPXODWH
but most in the region are not.
WKHGHYHORSPHQWRILQVXUDQFHE\
Percentage of poor with life microinsurance, by nation SURYLGLQJJUDQWVIXQGLQJWHFKQLFDO
DVVLVWDQFHDQGFRQGXFWLQJUHVHDUFK
WRKHOSRUJDQL]DWLRQVLQWURGXFHQHZ
PLFURLQVXUDQFHSURJUDPVDQGSURGXFWV
Turkmenistan 2QH*DWHV)RXQGDWLRQVSRQVRUHG
Less than 2% SLORWSURMHFWLVLQ%DQJODGHVK6L[
People’s Republic of China QRQJRYHUQPHQWRUJDQL]DWLRQV
2% to 6% DQG%DQJODGHVKEDVHG3UDJDWL
Nepal /LIH,QVXUDQFHDUHRIIHULQJOLIH
Pakistan Less than 2%
Less than 2% LQVXUDQFHZLWKVRPHKRVSLWDOL]DWLRQ
Bangladesh
FRYHUDJH7KHLQLWLDOWDUJHWLV
6% to 10%
India %DQJODGHVKLVDQGWKH\SODQWRVFDOHXS
2% to 6% Lao PDR VLJQLÀFDQWO\DIWHU\HDUV7KHFRYHUDJH
Less Philippines
Examples of than 6% to ZLOOEHVKRUWRYHURU\HDUWHUPV
other types of 2% Viet 10% $XQLTXHIHDWXUHLVWKDWSROLF\KROGHUV
Nam
microinsurance Less
ZLOOEHUHIXQGHGWKHLUSUHPLXPVDQG
coverage than 2% DQDGGLWLRQDORIWKHLULQYHVWPHQW
LIQRFODLPVDUHPDGHGXULQJWKHOLIH
Health
Sri Lanka RIWKHSROLF\,IWKH\PDNHQRFODLPRQ
Accidental Less than 2%
WKHLUKRVSLWDOL]DWLRQFRYHUDJHWKHUHLV
death and
dismemberment Indonesia QRUHIXQGEXWFRQVHTXHQWSUHPLXPV
Less than 2% DUHGLVFRXQWHGE\IRUHDFK
Crop or property damage
VXEVHTXHQW\HDUWKDWWKHUHLVQRFODLP
NOTE: Lao PDR = Lao People’s Democratic Republic ,Q)HEUXDU\2SSRUWXQLW\
Figures are for member nations that are among the world’s 100 poorest nations and for which suitable data is available.
,QWHUQDWLRQDODPLFURÀQDQFH
Sources: The Landscape of Microinsurance in the World’s 100 Poorest Countries, Jim Roth, Michael J. McCord,
and Dominic Liber (2007); Protecting the Poor: A Microinsurance Compendium, Craig Churchill, editor (2006) LQVWLWXWLRQUHFHLYHGDPLOOLRQ
RESEARCH AND DESIGN: MARK BLACKWELL JUDQWIURPWKH*DWHV)RXQGDWLRQ
IRU2SSRUWXQLW\·V0LFUR(QVXUH
QXPEHURISHRSOHXVLQJPLFURLQVXUDQFH XSLQ-DQXDU\ZLWKSODQVWREULQJ WKHZRUOG·VÀUVWVWDQGDORQH
KDVULVHQIURPMXVWXQGHUPLOOLRQ LQVXUDQFHDQGÀQDQFLDOVHUYLFHVWR PLFURLQVXUDQFHEURNHU7KH\ZLOOPRYH
LQWRDERXWPLOOLRQWRGD\ PLOOLRQORZLQFRPHSHRSOHLQ$IULFD LQWRQHZFRXQWULHVLQ$IULFD$VLD
$QRWKHUVLJQWKDWWKLQJVDUHSLFNLQJXS DQG$VLD,QWKH\FUHDWHGWKH DQG/DWLQ$PHULFDWRSURYLGHOLIH
LVWKDWPXOWLQDWLRQDOLQVXUDQFHÀUPV /HDS)URJ)LQDQFLDO,QFOXVLRQ)XQG KHDOWKDQGFURSLQVXUDQFHWRPLOOLRQ
DUHSD\LQJDWWHQWLRQ,QLWVVXUYH\ WKHÀUVWLQYHVWPHQWIXQGIRFXVHG SRRUSHRSOHE\$W\SLFDOOLIH
RQPLFURÀQDQFH7KH(FRQRPLVWVD\V RQPLFURLQVXUDQFHZLWKEDFNLQJ LQVXUDQFHSROLF\FRVWVDERXWSHU
´2QHRIWKHPRVWHQFRXUDJLQJWUHQGV IURPWKHOLNHVRIH%D\IRXQGHU3LHUUH PRQWKDQGSD\VDGHDWKEHQHÀWIRUWKH
LQPLFURÀQDQFHLVWKDWWKHZRUOG·V 2PLG\DUDQGWKH(XURSHDQ,QYHVWPHQW KHDGRIWKHKRXVHKROGVSRXVHRUFKLOG
ODUJHVWEDQNVDQGLQVXUHUVDUHEHFRPLQJ %DQN,Q0D\/HDS)URJWKH 7KHSURGXFWLVVRSRSXODUWKDWDERXW
LQWHUHVWHGµ0XQLFK5HLVWHVWLQJ ODUJHVWLQYHVWRULQPLFURLQVXUDQFH QHZFOLHQWVDUHVLJQLQJHDFK
ÁRRGLQVXUDQFHLQ-DNDUWD6ZLVV5HLV ZRUOGZLGHDQQRXQFHGDPLOOLRQ PRQWKLQWKH3KLOLSSLQHV0LFUR(QVXUH
LQYROYHGLQKHDOWKSROLFLHVLQ3DNLVWDQ PLFURLQVXUDQFHLQLWLDWLYHWR´OLIWWHQVRI FXUUHQWO\KDVSROLFLHVFRYHULQJ
DQG=XULFK5HLVGDEEOLQJZLWK PLOOLRQVRXWRISRYHUW\µ PLOOLRQOLYHVLQ$IULFDQDQG
GLVDELOLW\FRYHUDJHLQWKH35& 2QHRIWKHVWDXQFKHVWVXSSRUWHUV $VLDQFRXQWULHV
'HVSLWHDOOWKHREVWDFOHV RIPLFURLQVXUDQFHVLQFHLVWKH %LOOLRQVRIXQLQVXUHGZRUNLQJSRRU
PLFURLQVXUDQFHKDVDJURZLQJEDQG %LOODQG0HOLQGD*DWHV)RXQGDWLRQ ZRUOGZLGHKDYHELJLQVXUHUVDQJOLQJ
RISDUWLFLSDQWVLQFOXGLQJWKRVHIURP ZKLFKKHOSVWKHSRRUZRUNWKHLUZD\ LQFUHDVLQJO\LQQRYDWLYHQHZSURGXFWV
WKHLQYHVWRUFRPPXQLW\/X[HPERXUJ RXWRISRYHUW\,Q'HFHPEHU WRFDWFKWKHLUEXVLQHVV%XWWKHTXHVWLRQ
EDVHG/HDS)URJ,QYHVWPHQWVZDVVHW WKHIRXQGDWLRQSDUWQHUHGZLWKWKH UHPDLQVZLOOWKH\ELWHQRZ"Q

ZZZGHYHORSPHQWDVLD -XO\²6HSWHPEHU 'HYHORSPHQW$VLD

 (9;0*3,

,QYLVLEOH
$VLD
0DQ\ELUWKVLQ$VLDDUHQHYHUUHFRUGHG$VWKRVHFKLOGUHQ
JURZXSWKHODFNRIELUWKUHJLVWUDWLRQFRPSOLFDWHVċ
LQVRPHFDVHVHYHQUXLQVċWKHLUOLYHV
%<.DUHQ(PPRQV

/
HHVDPL/HH\DNQRZVVKHZDV
ERUQ\HDUVDJREXWGRHV
QRWNQRZLQZKLFKPRQWK
6KHZDVERUQDWKRPHVR
WKHUHLVQRUHFRUG6KHJUHZXSLQD
/LVXKLOOWULEHYLOODJHLQ&KLDQJ5DL
SURYLQFHQRUWKHUQ7KDLODQGZKHUHKHU
JUDQGSDUHQWVOLYHG/HH\DFRXOGQRW
DIIRUGWRJRWRVFKRRODIWHUJUDGHEXW
FDQQRWHQUROOLQDYRFDWLRQDOVHZLQJ
RUJDQL]DWLRQ1*23ODQ,QWHUQDWLRQDO
UHFHQWO\VWHSSHGLQDVSDUWRID'1$
WHVWLQJSURMHFWWRSURYHVKHLVKHU
PRWKHU·VGDXJKWHUZKLFKVKRXOG
JHWWKHQHHGHGVLJQDWXUHIRUKHU
ELUWKUHJLVWUDWLRQ%XWIRUQRZVKHLV
HIIHFWLYHO\VWDWHOHVV
/HH\DLVDPRQJWKHHVWLPDWHGWHQV
RIPLOOLRQVRIXQUHJLVWHUHGSHRSOHLQ
$VLD$FFRUGLQJWRWKH8QLWHG1DWLRQV
FRXUVHEHFDXVHVKHGRHVQRWKDYHD
7KDLLGHQWLÀFDWLRQFDUG6KHQHHGVKHU
ELUWKUHJLVWUDWLRQWRJHWWKHFDUG6KH
KDVWULHGWRJHWWKHUHJLVWUDWLRQEXWWKH
FLYLOUHJLVWUDURIÀFHUKDVVSHQW\HDUV
WHOOLQJKHUWREHSDWLHQW$EULEHRI
&KLOGUHQ·V)XQG81,&()DWOHDVW
PLOOLRQELUWKVLQ³PRUHWKDQ
RIDOOEDELHVERUQJOREDOO\³ZHUHQRW
UHJLVWHUHGKDOIWKHPLQ6RXWK$VLD7KH
HVWLPDWHVRIROGHUFKLOGUHQDQGDGXOWV
ZLWKRXWUHJLVWHUHGELUWKVDUHPXFK
EDKWZRXOGOLNHO\WDNHFDUH
RIWKHUHJLVWUDWLRQVKHVD\VEXWPRQH\
LVWLJKW
)RUWKHSDVW\HDUV/HH\DKDV
ZRUNHGKRXUVDGD\LQDUHVWDXUDQW
VWDUWLQJDWDPDQGHDUQLQJEDKW
KLJKHU
/,1.726(59,&(6$1'3527(&7,21
7DNHQIRUJUDQWHGLQWKHGHYHORSHG
ZRUOGZKHUHELUWKVW\SLFDOO\RFFXU
LQDKRVSLWDODQGDUHUHJLVWHUHG
+DOIRIKHUHDUQLQJVJRWRFRYHU
KHUUHQW:KHQVKHLVVLFNVKHSD\VWKH
KLJKHUFOLQLFIHHEHFDXVHVKHH[SHFWV
WKHKRVSLWDOZLOOWXUQKHUDZD\ZLWKRXW
DQ,'FDUG6KHKDVWRDYRLGWKHSROLFH
EHFDXVHWKH\ZDQWPRQH\IURPKHUIRU
KDYLQJQR,'
´,GRQ·WKDYHDZD\WRJRRXWµVKH
VD\VLQDSKRQHLQWHUYLHZ´0D\EH,
KDYHWROLYHOLNHWKLVDOZD\VHDUQLQJ
EDKWDGD\µ7KHQRQJRYHUQPHQW
'HYHORSPHQW$VLD -XO\²6HSWHPEHU
V\VWHPDWLFDOO\ELUWKUHJLVWUDWLRQLV
DFLYLOIRUPDOLW\ZLWKDJDUJDQWXDQ
SXUSRVHWKDWIRUDYDULHW\RIUHDVRQV
125(&25'6$FRPPXQLW\RIIRUPHUO\
ERQGHGODERUHUVOLYHVLQDVHWWOHPHQW
NQRZQDV+LPDWDEDGRU&RXUDJH7RZQ
3,&785(&5(',7$)3
LQ3DNLVWDQ7KHSRRUZKRZRUNHG
ZLWKLQWKHV\VWHPRIERQGHGODERUZHUH
GHSULYHGRIWKHLUEDVLFULJKWVVXFKDV
ELUWKUHJLVWUDWLRQ
ZZZGHYHORSPHQWDVLD
ZZZGHYHORSPHQWDVLD -XO\²6HSWHPEHU 'HYHORSPHQW$VLD
 (9;0*3,

†&LYLOUHJLVWUDWLRQLV
WKHEDVLVRIJRYHUQDQFH‡
Hˆ
 %

- ..6

 ‰
 I  1


LVGLIÀFXOWIRUPDQ\SHRSOHWRDFTXLUH
81,&()GHÀQHVELUWKUHJLVWUDWLRQDV
´WKHRIÀFLDOUHFRUGLQJRIWKHELUWKRI
DFKLOGE\VRPHDGPLQLVWUDWLYHOHYHO
RIWKHVWDWHDQGFRRUGLQDWHGE\D
SDUWLFXODUEUDQFKRIJRYHUQPHQWµ
´&LYLOUHJLVWUDWLRQLVWKHEDVLVRI
JRYHUQDQFHµVD\V-XGLWK(QQHZ
ZKRVWDUWHG.QRZLQJ&KLOGUHQWKH
FKLOGUHQ·VULJKWV1*2LQ7KDLODQG
ZKLFKLQLWLDWHGWKH´7KLVLV:KR
,$PµSURMHFWWRSURYLGHLGHQWLW\
GRFXPHQWDWLRQ´EH\RQGQDWLRQDOLW\µ
IRUVWDWHOHVVFKLOGUHQ´,IDQDWLRQDO
VWDWHGRHVQ·WNQRZZKRLWVGHQL]HQV
DUHLWFDQ·WPDNHJRRGSROLFLHVµVKH
VD\V
)LUVWGHFODUHGDKXPDQULJKWLQ
ELUWKUHJLVWUDWLRQLVRIWHQFRQIXVHGZLWK
QDWLRQDOLW\5HJLVWUDWLRQSURYLGHVOHJDO
UHFRJQLWLRQWKDWDSHUVRQH[LVWVWKRXJK
LWLVQRWWKHRQO\IRUPRIOHJDOLGHQWLW\
DYDLODEOH7KHUHLVDOVRKRXVHKROG
UHJLVWUDWLRQFLWL]HQVKLSFHUWLÀFDWHVDV
LQ1HSDODQGHYHQWKHIDPLO\ERRNV
LQ&DPERGLDLQLWLDWHGE\WKH.KPHU
5RXJHLQWKHVIRUOLVWLQJIDPLO\
QDPHVDQGELUWKGDWHV
5HSUHVHQWHGE\DELUWKFHUWLÀFDWH
ELUWKUHJLVWUDWLRQLVWKHSUHIHUUHG
VWDQGDUGEHFDXVHLWDIÀUPVDJHSODFH
RIELUWKQDWLRQDOLW\DQGIDPLO\WLHV
ZKLFKDUHQHFHVVDU\IRULQKHULWDQFH
ULJKWVREWDLQLQJDSDVVSRUWDQGIRU
SURWHFWLRQ3URRIRIDJHFDQGHWHUPLQH
3,&785(&5(',7-83,7(5,0$*(6

%$%<67(36%LUWKUHJLVWUDWLRQZDV
ÀUVWGHFODUHGDKXPDQULJKWLQEXW
PLOOLRQVRISHRSOHVWLOOGRQRWKDYHOHJDO
SURRIWKDWWKH\H[LVW6HYHUDOFRXQWULHVLQ
$VLDKDYHXQGHUWDNHQWKHFRPSOH[DQG
H[SHQVLYHWDVNRIUHIRUPLQJWKHLUFLYLO
UHJLVWUDWLRQV\VWHPV

'HYHORSPHQW$VLD -XO\²6HSWHPEHU ZZZGHYHORSPHQWDVLD

ZKHWKHUDQDGXOWKDVFRPPLWWHGDVH[
FULPHDJDLQVWDPLQRUZKHWKHUDFKLOG
LVWRR\RXQJWRZRUNRUPDUU\RUVHUYH
LQWKHDUPHGIRUFHVDQGMXYHQLOHMXVWLFH
LPSOLFDWLRQV
%LUWKUHJLVWUDWLRQ·VVHFRQGSXUSRVH
LVVWDWLVWLFDO5HFRUGVHQDEOHDFRXQWU\
WRWUDFNLWVSRSXODWLRQQXPEHUVDQG
WUHQGV'DWDLQIRUPVSROLF\PDNLQJ
DQGSODQQLQJDQGWKHGHOLYHU\
RIVHUYLFHVHVSHFLDOO\LQKHDOWK
HGXFDWLRQKRXVLQJZDWHUDQG
VDQLWDWLRQ,QFRXQWULHVVXFKDVWKH
3KLOLSSLQHVJRYHUQPHQWEXGJHWLQJ
LVEDVHGGLUHFWO\RQWKHSRSXODWLRQ
FRXQW
)RUDGYRFDWHVVXFKDV0LQJ9LDGR
WKH$VLDQUHJLRQDODGYLVHUIRUXQLYHUVDO
ELUWKUHJLVWUDWLRQIRU3ODQ,QWHUQDWLRQDO
ELUWKUHJLVWUDWLRQÀJXUHVDUHPRUH
UHOLDEOHWKDQFHQVXVGDWD´7KHFHQVXV
LVQRWWKDWDFFXUDWH³PD\EHLQWRZQ
FHQWHUVRND\EXWQRWIRUWKHIDUÁXQJ
DUHDV7KHJRYHUQPHQWSHRSOHHYHQ
DGPLWWKDWLW·VQRWYHU\DFFXUDWHµ
3ODQ,QWHUQDWLRQDOMXVWFRQFOXGHGD
\HDUELUWKUHJLVWUDWLRQFDPSDLJQZLWK
81,&()LQFRXQWULHV
,QVRPHFRXQWULHVFKLOGUHQPXVW
VKRZELUWKFHUWLÀFDWHVWRSURYHWKH\
DUHROGHQRXJKWRHQUROOLQVFKRRO,Q
RWKHUVWKH\QHHGSURRIRIQDWLRQDO
LGHQWLW\WRVLWIRUH[DPVRUIRUDVFKRRO
FRPSOHWLRQFHUWLÀFDWHDQGELUWK
FHUWLÀFDWHVDUHRIWHQQHFHVVDU\WRREWDLQ
GHFHQWHPSOR\PHQWRUVXEVLGL]HG
KHDOWKFDUH
(VWDEOLVKLQJQDWLRQDOLGHQWLW\W\SLFDOO\
UHTXLUHVDELUWKFHUWLÀFDWHWKRXJK
LQVRPHFRXQWULHVRWKHUHYLGHQFHLV
DFFHSWHGVXFKDVOHWWHUVIURPYLOODJH
FKLHIVRUZLWQHVVHVRIWKHELUWK
1HFHVVLW\RIWHQSURPSWVROGHUSHRSOH
WRÀQDOO\UHJLVWHU9LDGR·VELUWKZDVQRW
UHJLVWHUHGXQWLOVKHZDVDQGQHHGHG
SURRIIRUKHUVL[WKJUDGHFRPSOHWLRQ
FHUWLÀFDWHEHFDXVHKHU,IXJDRSDUHQWVLQ
QRUWKHUQ3KLOLSSLQHVGLGQRWUHDOL]HLWV
†$WOHDVWPLOOLRQ
ELUWKVLQ³PRUH
WKDQWZRILIWKVRIDOO
EDELHVERUQJOREDOO\³
ZHUHQRWUHJLVWHUHGKDOI
WKHPLQ6RXWK$VLD‡
H531E
7RGD\PLOOLRQVRISHRSOHPRYH
DZD\IURPKRPHDQGFURVVERUGHUV
IRUHPSOR\PHQW3DVVSRUWVXVXDOO\
GHSHQGRQDELUWKFHUWLÀFDWHEXWQRW
HYHU\ZKHUH,Q1HSDOIRULQVWDQFH
FLWL]HQVPXVWVKRZDVHSDUDWH
FLWL]HQVKLSGRFXPHQW:KLOHWKH
PDVVLYHPLJUDWLRQRISHRSOHKDVVHW
RIIZDYHVRIQDWLRQDOLVPPRUHDQG
PRUHFRXQWULHVSUDLVHUHPLWWDQFHV·
FRQWULEXWLRQWRWKHJURVVGRPHVWLF
SURGXFWDQGSRYHUW\DOOHYLDWLRQ
0$1<0287+61292,&(
/DZ\HUDQGGHYHORSPHQWZRUNHU
&DUROLQH9DQGHQDEHHOHZDVGHVLJQLQJ
DUXUDOGHYHORSPHQWSURMHFWLQWR
EHQHÀWERQGHGODERUHUVLQ3DNLVWDQ·V
VRXWKHUQSURYLQFHRI6LQGK7KH
VKDUHFURSSHUVZHUHGXVWHGZLWKHDUWK
DQGZULQNOHGEH\RQGWKHLU\HDUV
WKHLUSRFNHWVHPSW\DQGWKHLUFRWWDJHV
ODFNLQJDQ\WKLQJWRVKRZIRUDOLIH
VSHQWZRUNLQJWKHODQG7KHLUFKLOGUHQ
VHHPHGOLNHO\WRIROORZLQWKHLU
IRRWVWHSVQRWE\FKRLFH
9DQGHQDEHHOHZRQGHUHGZK\WKH\
ZHUHQRWUHJLVWHUHGLQWKHÀHOGERRNV
ZKLFKZRXOGJLYHWKHPVRPHULJKWV
WRSURWHFWLRQIURPWKHH[SORLWDWLYH
ODQGRZQHU´%HFDXVHZHFDQ·WSURYH
ZHH[LVWµVKHZDVWROG
$\HDUODWHUZKLOHGRLQJVLPLODU
ÀHOGVWXGLHVIRUDZRPHQ·V
HPSRZHUPHQWSURMHFWIRUWKH
7KHSUREOHPRISHRSOHODFNLQJELUWK
UHJLVWUDWLRQZDVZHOONQRZQDWWKH
WLPH)RU\HDUVRUJDQL]DWLRQVKDGEHHQ
PDLQWDLQHGWKDWLQDGHTXDWHUHJLVWUDWLRQ
ZDVGHQ\LQJPLOOLRQVRISHRSOHWKH
EDVLFKXPDQULJKWWRDQLGHQWLW\
JXDUDQWHHGE\LQWHUQDWLRQDOODZDQG
DQHFHVVDU\VDIHJXDUGIRURWKHUULJKWV
,QDFFRUGLQJWR81,&()DQ
HVWLPDWHGPLOOLRQELUWKVJOREDOO\³
PRUHWKDQRIDOOEDELHVERUQ
WKHQ³ZHUHQRWUHJLVWHUHGPRUHWKDQ
WZRRXWRIWKUHHRIWKHPLQ$VLD
%XWWKHHFKRRIWKH3DNLVWDQL
VKDUHFURSSHUV·ZRUGVWXUQHG
9DQGHQDEHHOH·VDWWHQWLRQWRZDUG
LVVXHVWKDWZHQWEH\RQGULJKWVDQG
FORVHUWRKRPH6KHEHJDQWRORRN
DWWKHH[WHQWWRZKLFKSHRSOHZHUH
H[FOXGHGIURPDFFHVVLQJVHUYLFHV
DQGRSSRUWXQLWLHVEHFDXVHWKH\GLG
QRWKDYHDOHJDOLGHQWLW\)LQGLQJ
QRSXEOLVKHGVWXG\VKHZRQGHUHG
LIGHYHORSPHQWSURMHFWVZHUHQRW
UHDFKLQJWKHLULQWHQGHGEHQHÀFLDULHV
EHFDXVHSURMHFWGHVLJQHUVZHUH
XQDZDUHRIWKHOLQN
´:HQHYHUDFWXDOO\DVN¶'RZHUHDFK
WKHPRVWYXOQHUDEOHSRSXODWLRQVDQG
FDQWKH\DFFHVVWKLVRSSRUWXQLW\ZH·YH
SURYLGHGZLWKRXWDELUWKFHUWLÀFDWH"·µ
VKHVD\VIURPKHURIÀFHLQ1HSDO
ZKHUHVKHQRZZRUNVZLWKWKH8QLWHG
1DWLRQV6KHFKRVHWKUHHFRXQWULHVWR
LQYHVWLJDWH%DQJODGHVK&DPERGLD
DQG1HSDO
6RKRZPXFKGLIIHUHQFHGRHVD
ELUWKUHJLVWUDWLRQPDNH"7KHUHZDV
QRVLPSOHFRQFOXVLRQ7KHUHDUH
IDUUHDFKLQJLPSOLFDWLRQVIRUDFFHVV
SURWHFWLRQDQGGLVWULEXWLRQRISXEOLF
UHVRXUFHV9DQGHQDEHHOHZULWHVLQ
WKH$'%UHSRUW/HJDO,GHQWLW\IRU
,QFOXVLYH'HYHORSPHQW'RFXPHQWDWLRQ
LVPRUHHVVHQWLDOLQFRXQWULHVPRUH
FDSDEOHRISURYLGLQJVHUYLFHVDQG
RSSRUWXQLWLHVRULILWLVWDNHQRQZLWKLQ
DODUJHUUHIRUPDJHQGD7KHUHDOLWLHVLQ
LPSRUWDQFH)RUWKHPOLNHPDQ\ROGHU $VLDQ'HYHORSPHQW%DQN$'% GHYHORSLQJFRXQWULHV³VXFKDVZHDN
JHQHUDWLRQVELUWKUHJLVWUDWLRQZDVQRW 9DQGHQDEHHOHDJDLQKHDUGVLPLODU LQVWLWXWLRQVZLGHVSUHDGSRYHUW\DQG
WKHLPSHUDWLYHLWKDVEHFRPHLQUHFHQW ZRUGVWKLVWLPHUHJDUGLQJDFFHVVWR FRUUXSWLRQ³´OLPLWWKHFRQFUHWHYDOXH
WLPHV HGXFDWLRQDQGSURSHUW\ULJKWV RIOHJDOLGHQWLW\µ

ZZZGHYHORSPHQWDVLD -XO\²6HSWHPEHU 'HYHORSPHQW$VLD

 (9;0*3,
)RUWKHPRVWSDUWXQUHJLVWHUHG
ELUWKVDUHFKLOGUHQRIWKHSRRU
DQGPDUJLQDOL]HGDFFRUGLQJWR
81,&()7KHODFNRIUHJLVWUDWLRQ
´RQO\H[DFHUEDWHVWKHLUSRYHUW\DQG
XQGHUVFRUHVWKHLUPDUJLQDOL]DWLRQµ
VWLOOPLGZLYHVLQVRPHFRXQWULHVFDQ
QRZKDQGOHUHJLVWUDWLRQHYHQE\
PRELOHSKRQH
7KHODFNRISROLWLFDOFRPPLWPHQW
WRWKHSXUSRVHOHDYHVV\VWHPVXQGHU
VWDIIHG)RUH[DPSOHPLOOLRQUXSHHV
VWDWHVWKHLUUHSRUW%LUWK5HJLVWUDWLRQ
5LJKWIURPWKH6WDUW81,&()UHVHDUFK
LQIRXQGDVWURQJFRUUHODWLRQ
EHWZHHQELUWKUHJLVWUDWLRQDQG
DFFHVVWREHQHÀWVLQFRXQWULHV³D
FRUUHODWLRQQRWQHFHVVDULO\DFDXVDO
OLQN9DQGHQDEHHOHSRLQWVRXW
:LWKRXWFRPSOHPHQWDU\UHIRUPV
VKHDGGVVRPHELUWKUHJLVWUDWLRQ
FDPSDLJQVFRXOGLQDGYHUWHQWO\HQG
XSFXWWLQJSHRSOHRIIIURPWKHYHU\
JRDOWKH\KRSHGWRDFKLHYH³DFFHVV
WRVHUYLFHVDQGRSSRUWXQLWLHV6WLOO
9DQGHQDEHHOHGRHVQRWZDYHURQ
WKHLPSRUWDQFHRIELUWKUHJLVWUDWLRQ
6KHKDVGHVLJQHGIRU$'%D\HDU
PLOOLRQOHJDOLGHQWLW\UHJLVWUDWLRQ
SURMHFWEHLQJODXQFKHGWKLV\HDULQ
1HSDO7KHSURMHFWLVGHVLJQHGWR
SURYLGHELUWKUHJLVWUDWLRQVWRRI
WKHSRRULQGLVWULFWV
:+<7+(<*2815(*,67(5('
,JQRUDQFHRIWKHUHJLVWUDWLRQSURFHVV
DQGWKHQHHGIRULWDUHRQO\WZRRI
WKHPDQ\UHDVRQVZK\SHRSOHJR
XQUHJLVWHUHG2WKHUREVWDFOHVFDQEH
JHRJUDSKLFDOÀQDQFLDOLQVWLWXWLRQDO
FXOWXUDOOHJDODQGSROLWLFDO
$PDMRUEDUULHULVWKHORJLVWLFDO
FRPSOH[LW\6RPHSHRSOHOLYHLQVXFK
UHPRWHDUHDVWKDWWKH\FDQQRWDIIRUG
WKHWUDQVSRUWWKHWLPHRIIZRUNRUWKH
IRRGIRUDGD\WULSRUDGD\ZDON
WKURXJKWKH+LPDOD\DV5HJLVWUDWLRQ
V\VWHPVDUHXQGHUUHVRXUFHGXQDEOH
WRVHWXSRIÀFHVWRVHUYHUHPRWHDUHDV
6RPHFRXQWULHVFKDUJHDVPDOOIHHRWKHU
DUHIUHHEXWOHY\ÀQHVIRUQRWUHJLVWHULQJ
ZLWKLQDFHUWDLQWLPH$ODVVRPH
SDUHQWVGRQRWZDQWWRQDPHWKHLUEDE\
ULJKWDZD\IRUFXOWXUDOUHDVRQV
5HJLVWUDWLRQSURMHFWVDUHZRUNLQJ
WROLQNKRVSLWDOVGLUHFWO\WRWKH
UHJLVWUDWLRQV\VWHP7RFRSHZLWKWKH
ODUJHQXPEHURIFKLOGUHQERUQDWKRPH
'HYHORSPHQW$VLD -XO\²6HSWHPEHU
ZDVEXGJHWHGIRU1HSDO·V9LWDO
(YHQW5HJLVWUDWLRQ6\VWHPIRUÀVFDO\HDU
0RVWRIWKDWFRYHUVWKHFHQWUDO
VWDIIVDODULHVLQFOXGLQJWHDER\VOHDYLQJ
DSLWWDQFHIRUWKHSURFHVVDZDUHQHVV
UDLVLQJDQGSULQWLQJRIIRUPV
,Q7KDLODQGVRPHUHJLVWUDURIÀFHUV
GRQRWEHOLHYHWKH&LYLO5HJLVWUDWLRQ
/DZDFWXDOO\FKDQJHGLQ7KHQHZ
ODZDOORZVDQ\RQHERUQLQWKHFRXQWU\
WRUHJLVWHUWKHLUELUWKEXWUDWKHUWKDQ
EHKHOGDFFRXQWDEOHIRUDPLVWDNHFLYLO
VHUYDQWVUHIXVHWRDFNQRZOHGJHPDQ\
ELUWKV
(WKQLFGLVFULPLQDWLRQLVDKXJH
REVWDFOHLQWKHUHJLRQ´7KHSHRSOHDQG
RIÀFLDOVVWLOOODUJHO\GRQRWNQRZDERXW
WKLVODZµVD\V6XUDSRQJ.RQJFKDQWXN
GLUHFWRURIWKH.DUHQ6WXGLHVDQG
'HYHORSPHQW&HQWHUDQGDPHPEHU
RIWKH/DZ\HUV&RXQFLORI7KDLODQG
´%XWLQP\YLHZWKHGLVFULPLQDWLRQLVD
ELJJHUSUREOHPµ
6RPH7KDLRIÀFLDOVUHIXVHWR
UHJLVWHUHWKQLF7KDLVEHOLHYLQJLWZLOO
DXWRPDWLFDOO\OHDGWRFLWL]HQVKLS/HJDO
DFWLYLVWVVSHQW\HDUVFRQYLQFLQJWKH
0LQLVWU\RI,QWHULRUZKLFKLVLQFKDUJH VLQFHWKHODWHV1RELUWKLVHYHU
RIELUWKUHJLVWUDWLRQVWKDWDELUWK UHJLVWHUHGZLWKLQWKHLUVTXDOLGFDPSV
UHJLVWUDWLRQGRHVQRWHQWLWOHSHRSOHWR 2WKHUELDVHVNH\RIIJHQGHULVVXHV
FLWL]HQVKLSLIDWOHDVWRQHSDUHQWLVQRW )RUH[DPSOHDFKLOGLQWKH3KLOLSSLQHV
7KDL3DUWRIWKHELDVLVEDVHGRQWKH ERUQWRXQPDUULHGSDUHQWVFRXOGQRW
EHOLHIWKDWKLOOWULEHSHRSOHDUHIURP EHUHJLVWHUHGZLWKWKHIDWKHU·VVXUQDPH
QHLJKERULQJFRXQWULHV DQGZDVFRQVLGHUHGLOOHJLWLPDWHXQWLO
$QHVWLPDWHGPLOOLRQWRPLOOLRQ 0DQ\PRWKHUVVNLSSHGWKH
PLJUDQWVIURP0\DQPDUDUHOLYLQJLQ SURFHVVWRDYRLGWKHVWLJPDVD\V9LDGR
7KDLODQG8QGRFXPHQWHGSDUHQWV³ ,Q%DQJODGHVKRQO\IDWKHUVFDQUHJLVWHU
PDQ\RIZKRPGRQRWKDYHFLWL]HQVKLS WKHLUFKLOGUHQ
LQ0\DQPDUHLWKHU³ZLOOQRWUHJLVWHU &KLOGUHQERUQDWKRPHLQ0DOD\VLD
WKHLUFKLOGUHQIRUIHDURIEHLQJDUUHVWHG FDQQRWEHUHJLVWHUHGDQGIRUHLJQ
DQGGHSRUWHG%\ODZFHUWDLQRIÀFHUV SDUHQWVQHHGDSDVVSRUWDQGPDUULDJH
LQFOXGLQJFLYLOUHJLVWUDUVPXVWUHSRUW FHUWLÀFDWHWRUHJLVWHUDFKLOG0DQ\
DQ\RQHLQWKHFRXQWU\LOOHJDOO\ 0DOD\VLDQERUQ)LOLSLQRFKLOGUHQRI
7KH5RKLQJ\DDUHQRWZDQWHGLQWKHLU XQGRFXPHQWHGZRUNHUVLQ6DEDKGR
QDWLYH0\DQPDURULQ%DQJODGHVK QRWKDYHDELUWKFHUWLÀFDWHZKLFKWKH\
ZKHUHWKH\KDYHVRXJKWUHIXJH QHHGWRJRWRVFKRRO
ZZZGHYHORSPHQWDVLD
 $%2267)520%2//<:22'3ODQ,QGLD UHJLVWUDWLRQUDWHRIGLVFXVVHG 7KDWLVZK\9DQGHQDEHHOHVD\V
ODXQFKHGWKH8QLYHUVDO%LUWK5HJLVWUDWLRQ DFLYLOUHJLVWUDWLRQPRGHUQL]DWLRQ FDPSDLJQVWKDWDUHÀ[DWHGRQXQLYHUVDO
&DPSDLJQLQ1HZ'HOKLLQ0D\ SURMHFWLQZLWKWKH,QWHU$PHULFDQ ELUWKUHJLVWUDWLRQRUGHPDQGWKDW
ZLWKDFWRU$QLO.DSRRUULJKWEHVLGH 'HYHORSPHQW%DQNVD\V9DQGHQDEHHOH VHUYLFHVDQGRSSRUWXQLWLHVEHWLHG
ÀOPPDNHU*RYLQG1LKDODQLDVLWVJRRGZLOO
DPEDVVDGRU$WWKDWWLPHWKHHVWLPDWHG
WRWDOEDFNORJLQWKHLVVXDQFHRIELUWK
FHUWLÀFDWHVZDVPLOOLRQ
127($6<72),;
7KH3ODQ,QWHUQDWLRQDO81,&()ELUWK
UHJLVWUDWLRQFDPSDLJQZKLFKHQGHGLQ
LQYHVWHGLQHGXFDWLQJUHJLVWUDUV
DQGLPSURYLQJFLYLOUHJLVWUDWLRQV
V\VWHPVDVZHOODVUHJLVWHULQJPLOOLRQ
3,&785(&5(',7$)3
SHRSOH³PLOOLRQLQ&DPERGLDDORQH
%XWEXLOGLQJFDSDFLW\LQGHYHORSLQJ
FRXQWULHVLVDPDMRUH[SHQVH%UD]LO
IRUH[DPSOHZKLFKKDVDELUWK
ZZZGHYHORSPHQWDVLD
7KHHVWLPDWHGFRVWZDVELOOLRQ
,Q%DQJODGHVKDGYRFDF\LQLWLDWLYHV
VXFFHHGHGLQW\LQJDFFHVVWRVHUYLFHV
RSSRUWXQLWLHVDQGHYHQXWLOLWLHVWRD
ELUWKUHJLVWUDWLRQ%XWZLWKRQO\WR
RIDQHVWLPDWHGSRSXODWLRQRI
PLOOLRQUHJLVWHUHGD\HDUEDFNORJ
RIXQSURFHVVHGUHJLVWUDWLRQVHPHUJHG
LQWKHFDSLWDOFLW\VD\V9DQGHQDEHHOH
6WDIILQDQRWKHUFLW\GLGQRWKDYHWKH
VNLOOVWRRSHUDWHWKHQHZO\LQVWDOOHG
FRPSXWHUV\VWHP7KDWOHDYHVSHRSOH
ZLWKWKUHHRSWLRQVVKHVD\VGRQ·WJHW
WKHVHUYLFHVEULEHIRUWKHVHUYLFHVRU
EULEHIRUWKHELUWKFHUWLÀFDWH
WRDELUWKUHJLVWUDWLRQULVNH[FOXGLQJ
SRRUDQGPDUJLQDOL]HGSHRSOHRU
DGGLQJDGGLWLRQDOEDUULHUV$SXVKWR
UHJLVWHUSHRSOHKDVWREHFRXSOHGZLWK
EXLOGLQJDV\VWHPVKHZDUQVDQG
WKHVHTXHQFLQJRIDFWLYLWLHVVSHOOVWKH
GLIIHUHQFHEHWZHHQUHDOGHYHORSPHQW
DQGEDFNORJ
7DNLQJRQWKRVHUHDOLWLHVLQFOXGLQJ
UHGXFLQJVWUXFWXUDOYXOQHUDELOLWLHV
DGGV'DYLG)HLQJROGRIWKH81(6&2
+LJKODQG%LUWKDQG&LWL]HQVKLS
5HJLVWUDWLRQ3URPRWLRQ3URMHFW´VWDUWV
ZLWKELUWKUHJLVWUDWLRQ³EXWLWGRHVQ·W
HQGWKHUHµQ
-XO\²6HSWHPEHU 'HYHORSPHQW$VLD
 796-03,:05+,=,3674,5;
.LQJRI+HDUWV ,QGLDâVPRVWIDPRXVVXUJHRQKDVEURXJKWFDUGLDFFDUH
ZLWKLQUHDFKIRUPLOOLRQVRIZRUNLQJSRRU
2
QWKHZD\WRKLVÁDJVKLS
1DUD\DQD+UXGD\DOD\D
PXOWLVSHFLDOW\KRVSLWDO
RQWKHRXWVNLUWVRI
%DQJDORUHRQHRIVHYHUDOKRVSLWDOV'U
'HYL3UDVDG6KHWW\DQGKLVWHDPKDYH
EXLOWWRFDUHIRUSRRUDQGULFKDOLNH
,QGLD·VPRVWFHOHEUDWHGKHDUWVXUJHRQ
VDYHVWLPHE\FKDQJLQJLQWRVXUJLFDO
JUHHQVLQWKHEDFNVHDWRIWKHFDU:LWK
LQIHFWLRXVHQWKXVLDVPDQGVHHPLQJO\
LQH[KDXVWLEOHHQHUJ\KHVWULGHVLQWR
RQHRIWKHKRVSLWDO·VFDUGLDFVXUJLFDO
WKHDWHUVWREHJLQDJUXHOLQJGDLO\
VFKHGXOHWKDWWHVWVGRFWRUVKDOIKLVDJH
KRXUGD\VZLWKRQO\6XQGD\VRIIWR
EHZLWKKLVZLIHDQGWKUHHFKLOGUHQ
´,KDYHDYHU\XQGHUVWDQGLQJZLIHµ
KHVD\VZLWKW\SLFDOXQGHUVWDWHPHQW
%HWZHHQKLVPDQ\UHVSRQVLELOLWLHV
LQFOXGLQJDFWLQJDVKRVSLWDOGLUHFWRU
KHÀQGVWLPHWRSHUIRUPWZRRUWKUHH
RSHQKHDUWVXUJHULHVGDLO\+RZ
PDQ\KDVKHGRQHLQWRWDO"´,VWRSSHG
FRXQWLQJDWµKHVKUXJV0RVWRI
WKHPKDYHEHHQIRUIUHHDQGWKRXVDQGV
RIWKHPKDYHVDYHGWKHOLYHVRISRRU
FKLOGUHQ$W6KHWW\KDVZRUNHG
FHDVHOHVVO\IRUPRUHWKDQGHFDGHVWR
SURYLGHKHDOWKFDUHIRU,QGLD·VZRUNLQJ
SRRUHYHU\WKLQJIURPEXLOGLQJ
EHGKHDUWKRVSLWDOVDQGVWUHDPOLQLQJ
KHDUWVXUJHULHVWRGHYHORSLQJDJOREDO
WHOHPHGLFLQHQHWZRUNWRWUHDWUXUDO
GZHOOHUVDQGDKHDOWKLQVXUDQFH
VFKHPHIRUPLOOLRQVRIIDUPHUV
$))25'$%/(685*(5<
%RUQLQ.DUQDWDND6WDWHLQ6RXWKHUQ
,QGLDKHJUDGXDWHGIURP.DUVWXUED
'HYHORSPHQW$VLD -XO\²6HSWHPEHU
%<-DPHV+XWFKLVRQ
3+<6,&,$12)7+(3225$IWHUWUDLQLQJ
LQFDUGLDFVXUJHU\LQWKH8QLWHG.LQJGRP
'U'HYL3UDVDG6KHWW\UHWXUQHGWR,QGLD
WRVHUYHWKHSRRU+HKDVORZHUHGWKH
FRVWRIRSHQKHDUWVXUJHU\EURXJKW
H[SHUWKHDUWFDUHWRUXUDODUHDVWKURXJK
WHOHPHGLFLQHDQGVWDUWHGDPLFURKHDOWK
LQVXUDQFHSURJUDP
0HGLFDO&ROOHJHLQ0DQJDORUHLQ
$IWHUWUDLQLQJLQFDUGLDFVXUJHU\LQWKH
8QLWHG.LQJGRPKHUHWXUQHGWR,QGLD
LQWRIXOÀOODOLIHORQJGUHDPRI
VHUYLQJWKHSRRUDQGVHWXSWKH%0
%LUOD+HDUW5HVHDUFK&HQWUHLQ.RONDWD
,QGLD·VÀUVWVSHFLDOW\KHDUWKRVSLWDO
:KHQ0RWKHU7HUHVDIHOOLOOIURPKHDUW
GLVHDVHKHEHFDPHKHUGRFWRU
,QGLDQVDUHIDOOLQJYLFWLPWRKHDUW
GLVHDVHE\WKHPLOOLRQKHH[SODLQV
QRWRQO\EHFDXVHWKH\DUHPRUH
VXVFHSWLEOHWRKHDUWGLVHDVHWKDQ
(XURSHDQVEXWDOVRGXHWRWKH
DGRSWLRQRIWKHVDPHGHDGO\OLIHVW\OH³
LQFOXGLQJODFNRIH[HUFLVHIDWODGHQ
GLHWVDQGVPRNLQJ³WKDWFUHDWHGDQ
HSLGHPLFRIFDUGLRYDVFXODUGLVHDVHV
LQGHYHORSHGFRXQWULHV7KH:RUOG
+HDOWK2UJDQL]DWLRQHVWLPDWHVWKDW
E\RIWKHZRUOG·VKHDUW
SDWLHQWVZLOOEH,QGLDQVZLWKSRRU
IDPLOLHVSDUWLFXODUO\GHYDVWDWHGZKHQD
EUHDGZLQQHULVIHOOHGE\KHDUWGLVHDVH
0LOOLRQVRI,QGLDQVQHHGKHDUWVXUJHU\
EXWRQO\WKHZHOOKHHOHGZHUHDEOHWR
DIIRUGLW
7KURXJKLQQRYDWLYH´SURGXFWLRQOLQHµ
DSSURDFKHVXVLQJH[SHQVLYHPHGLFDO
IDFLOLWLHVDURXQGWKHFORFNDQGKLJK
SDWLHQWYROXPHV6KHWW\DQGKLVWHDP
KDYHEURXJKWWKHFRVWRIRSHQKHDUW
VXUJHU\GRZQWRDERXW³
3,&785(&5(',77+(7,0(62),1',$
WLPHVFKHDSHUWKDQLQFRXQWULHVVXFK
DVWKH8QLWHG6WDWHV´8QOHVV\RXKDYH
DIHZWKRXVDQGSDWLHQWVXVLQJVXFK
LQIUDVWUXFWXUHGDLO\\RXFDQQRWUHGXFH
FRVWVDQGLPSURYHHIÀFLHQF\µKHVD\V
$VDQH[DPSOHKHVD\VWKHFRVWRID
&7VFDQFDQSOXPPHWWRQHDUWKDWRID
ZZZGHYHORSPHQWDVLD
 VLPSOHFKHVW[UD\ZKHQLWLVLQFRQVWDQW
XVHLQDEHGKRVSLWDO:RUNLQJ
LQVKLIWVVXUJHRQVSHUIRUPPDMRU
KHDUWVXUJHULHVGDLO\DQGGRWKHODUJHVW
QXPEHURIKHDUWVXUJHULHVRQFKLOGUHQLQ
WKHZRUOGDFKLHYLQJVXFFHVVUDWHVHTXDO
WRKRVSLWDOVLQGHYHORSHGFRXQWULHV
)RUWKRVHWRRSRRUWRDIIRUGWUHDWPHQW
SD\PHQWVDUHEDVHGRQDVOLGLQJVFDOH
ZLWKZHDOWKLHUSDWLHQWVVXEVLGL]LQJWKH
SRRUZKRDOVRUHFHLYHKHOSIURPWKH
KRVSLWDO·VFKDULW\ZLQJ
'HVSLWHWKHODUJHQXPEHURISRRU
SDWLHQWV6KHWW\·VIDFLOLWLHVVWLOOHDUQ
SURÀWVFRPSDUDEOHWR86KRVSLWDOV
DFFRUGLQJWRDUHSRUWLQ7KH(FRQRPLVW
ZLWKSHRSOHFRPLQJIRUWUHDWPHQWIURP
FRXQWULHV

5($&+,1*287727+(585$/3225
:LWKGRFWRUVIHZDQGIDUEHWZHHQLQ +HDUW&DUHRQ:KHHOVLVDQRWKHU 6$9,1*/,9(66KHWW\DQGKLVVXUJHRQVGR
UXUDO,QGLD6KHWW\VDZWKHQHHGWR LQQRYDWLYHHIIRUWWREULQJGLDJQRVLV WKHODUJHVWQXPEHURIKHDUWVXUJHULHVRQ
UHDFKRXWWRPLOOLRQVRISRRUXQWUHDWHG DQGWUHDWPHQWWRUHPRWHUHJLRQV7KH FKLOGUHQLQWKHZRUOGZLWKVXFFHVVUDWHV
KHDUWSDWLHQWVLQUHPRWHDUHDVPDQ\ PRELOHKHDUWFOLQLFURDPV.DUQDWDND HTXDOWRGHYHORSHGFRXQWULHV2QHSDWLHQW
RIZKRPVSHQWWKHLUOLIHVDYLQJV 6WDWHWUHDWLQJXSWRSDWLHQWVDGD\ ZDV\HDUROG1RRU)DWLPDRI3DNLVWDQ
WUDYHOOLQJJUHDWGLVWDQFHVWREULQJDVLFN ZLWKPHGLFDOVWDIILQFRPPXQLFDWLRQ ZKRXQGHUZHQWDVXFFHVVIXORSHUDWLRQLQ
UHODWLYHWRWKHKRVSLWDOIRUWUHDWPHQW ZLWK1DUD\DQD+UXGD\DOD\D DQGQRZOHDGVDQRUPDOOLIH
RQO\WRGLVFRYHUDOOWKDWZDVQHHGHG
ZDVPHGLFDWLRQQRWVXUJHU\ +($/7+,1685$1&( FHQWHUDQGDQH\HKRVSLWDO6KHWW\·V
,Q6KHWW\DQGKLVWHDPHQOLVWHG ,QFROODERUDWLRQZLWKWKH.DUQDWDND RUJDQL]DWLRQLVFXUUHQWO\LQYROYHG
WKHVXSSRUWRIWKH,QGLDQ6SDFH 6WDWH*RYHUQPHQW1DUD\DQD LQVHWWLQJXSDQHZKHDUWKRVSLWDO
5HVHDUFK2UJDQLVDWLRQDQG%DQJDORUH·V +UXGD\DOD\DODXQFKHGDPLFUR LQ'KDND%DQJODGHVKDQGSODQVWR
IDPHGFRPSXWHULQGXVWU\WRFUHDWH KHDOWKLQVXUDQFHSURJUDPFDOOHG EXLOGPRUHPHGLFDOFHQWHUVDFURVVWKH
WKH,QWHJUDWHG7HOHFDUGLRORJ\DQG <HVKDVZLQL,QGLD·VODUJHVWLWLQVXUHV QDWLRQWRUDLVHWKHQXPEHURIEHGVE\D
7HOHKHDOWK3URMHFWDVRSKLVWLFDWHG QHDUO\PLOOLRQSRRUIDUPHUVIRU VWDJJHULQJRYHUWKHQH[W\HDUV
WHOHPHGLFLQHV\VWHPRIVPDOOFOLQLFVLQ UXSHHVDPRQWK³WKHSULFHRID 'HVSLWHWKLVH[KDXVWLQJSDFH6KHWW\
UHPRWHUHJLRQVVWDIIHGZLWKVSHFLDOO\ SDFNRIFLJDUHWWHV³DQGKDVJURZQ UDUHO\PLVVHVDQRSSRUWXQLW\WRKHOS
WUDLQHGPHGLFVOLQNHGWRWKHKRVSLWDO LQWRWKHZRUOG·VODUJHVWVHOIIXQGHG WKRVHLQQHHGHVSHFLDOO\FKLOGUHQ
E\VDWHOOLWH,QWKHODVWGHFDGHKHDUW KHDOWKFDUHLQVXUDQFHVFKHPH6LPLODU :KHQ0DOD\VLDQGLVFRXQWDLUOLQH
VSHFLDOLVWVVLWWLQJDWYLGHRVFUHHQV SURJUDPVLQVSLUHGE\<HVKDVZLQLKDYH $LU$VLDODXQFKHGGDLO\ÁLJKWVWR
GLVFXVVLQJWUHDWPHQWRSWLRQVZLWK EHHQODXQFKHGLQRWKHU,QGLDQVWDWHV %DQJDORUHLQ0D\KHPDGHVXUH
SDWLHQWVDQGPHGLFVWKRXVDQGVRI 6KHWW\EHOLHYHVLWLVDPRGHORIKHDOWK FKLOGUHQZLWKFRQJHQLWDOKHDUW
NLORPHWHUVDZD\KDYHVDYHGWKRXVDQGV LQVXUDQFHWKDWFDQZRUNIRURWKHU GLVHDVHZHUHDERDUGWKHLQDXJXUDO
RIOLYHVDQGFRXQWOHVVZDVWHGWULSV GHYHORSLQJFRXQWULHV ÁLJKWVRKHFRXOGRSHUDWHRQWKHPWR
DQGKDYHUHPRWHO\WUHDWHGFORVHWR 7KHUHFHQWRSHQLQJDORQJVLGH JLYHWKHPQRUPDOFKLOGKRRGV
KHDUWSDWLHQWV7KHV\VWHPKDV 1DUD\DQD+UXGD\DOD\DRI0D]XPGDU 7KHHQRUPLW\RIWKHKHDOWKFULVLV
H[SDQGHGWRRYHUORFDWLRQVDFURVV 6KDZ&DQFHU&HQWUHWKHZRUOG·VODUJHVW IDFLQJ,QGLD·VSRRULVGDXQWLQJEXW
,QGLDDQGLQWHUQDWLRQDOO\LQFOXGLQJ FDQFHUKRVSLWDOZLWKEHGVZLOO 6KHWW\·VEHOLHIWKDWLWFDQEHVROYHGLV
$IULFDDQGRWKHU$VLDQFRXQWULHV´7KH KHOSFRSHZLWKDQH[SHFWHGWULSOLQJRI XQVKDNHDEOH´*RGGRHVQRWFUHDWHD
3,&785(&5(',7$)3

UHDOEHQHÀWRIWHOHPHGLFLQHLV\HWWR FDQFHUVLQ,QGLDRYHUWKHQH[WGHFDGHV SUREOHPZLWKRXWDVROXWLRQµ,QGLD·V

FRPHWKURXJKHGXFDWLQJFRPPXQLWLHV :KDWKDVEHFRPH1DUD\DQD+HDOWK .LQJRI+HDUWVLVIRQGRIVD\LQJWRKLV
WRSUHYHQWGLVHDVHµVD\V6KHWW\ &LW\DOVRLQFOXGHVDPRGHUQWUDXPD :KRFDQDUJXHZLWKWKDW"Q

ZZZGHYHORSPHQWDVLD -XO\²6HSWHPEHU 'HYHORSPHQW$VLD

 9,*655(0:(5*,
$QFLHQW*UDVV5HERUQ
%DPERRKHOSV$VLDâVUXUDOSRRUFXWDJUHHQSDWKRXWRISRYHUW\
$
OODKDEDGGLVWULFWIDUPHUV
LQWKH,QGLDQVWDWHRI8WWDU
3UDGHVKZHUHKDSS\WR
OHDVHRXWKHFWDUHV
WREULFNPDNHUVIRUVRLOPLQLQJDQG
HDUQHGJRRGPRQH\IRUWKHÀUVWIHZ
\HDUV:KHQWKHPRQH\DQGPHWHUV
RIWRSVRLOZHUHJRQHOHDYLQJEDUUHQ
UHGHDUWKVFRXUHGE\HURVLYHGXVW
VWRUPVIDPLOLHVLQYLOODJHVRI
.DXULKDUEORFNZHUHSRYHUW\VWUXFN
WKHPHQIRUFHGWRVHHNMREVDVODERUHUV
LQ0XPEDLDQG3XQH
,QWKHSUHVLGHQWRIWKH8WWKDQ
&HQWUHIRU6XVWDLQDEOH'HYHORSPHQW
DQG3RYHUW\$OOHYLDWLRQ'LQD1DWK
7HZDULFRQYLQFHGGHVWLWXWHYLOODJH
ZRPHQWKDWKHFRXOGKHOSWKHP
UHKDELOLWDWHWKHLUODQG:LWKDVVLVWDQFH
IURPWKH,QWHUQDWLRQDO1HWZRUNIRU
%<-DPHV+XWFKLVRQ
RIDOPRVWHDFK%\WKHÀIWK\HDU
PDOHIDPLO\PHPEHUVKDGUHWXUQHGWR
EHJLQGDLU\IDUPLQJ

5,6,1**5((167$5
%DPERR·VEHQHÀFLDOUROHDVD
SLRQHHUSODQWLQODQGUHVWRUDWLRQDQG
DJURIRUHVWU\LVMXVWRQHRIDPXOWLWXGH
RIVWFHQWXU\GXWLHVIRUDWLPHOHVV
$VLDQLFRQ7KHZRUOG·VWDOOHVWVSHFLHV
RIJUDVVLVHQMR\LQJDPRGHUQJOREDO
UHLQFDUQDWLRQLQWRHYHU\WKLQJIURP
WUHQG\PRXQWDLQELNHIUDPHVDQG
EDPERRHQFDVHGODSWRSVWRHFRIULHQGO\
KLJKTXDOLW\ÁRRULQJDQGSO\ERDUG
%XWLWVPRVWLPSRUWDQWQHZUROHLVWR
FUHDWHDUHQHZDEOHJUHHQSDWKZD\RXWRI
SRYHUW\IRUPLOOLRQVLQGHYHORSLQJ$VLD
´2YHUDELOOLRQSHRSOHZRUOGZLGH
´2YHUDELOOLRQ GHSHQGRQEDPERRµVD\V&RRVMH
%DPERRDQG5DWWDQ,1%$57HZDUL +RRJHQGRRUQ,1%$5GLUHFWRUJHQHUDO
DQGKLVWHDPVHWXSQXUVHULHVDQG SHRSOHZRUOGZLGH DWWKHRUJDQL]DWLRQ·VKHDGRIÀFHLQ
WDXJKWWKHZRPHQKRZWRFXOWLYDWHDQG GHSHQGRQEDPERRµ %HLMLQJ3HRSOH·V5HSXEOLFRI&KLQD
SODQWWKRXVDQGVRIEDPERRVDSOLQJV 35&%\IDUWKHZRUOG·VODUJHVW
:LWKLQD\HDUDVHDRIJUHHQEDPERR SURGXFHUDQGH[SRUWHURIEDPERR
 
8(#"
KDGVWDELOL]HGWKHVRLODOORZLQJKDUG\ #"""$'" SURGXFWVWKH35&DOVRKDVWKHPRVW
IRGGHUIXHODQGPHGLFLQDOSODQWV
DORQJZLWKIUXLWDQGWLPEHU\LHOGLQJ
WUHHVWKDWWKHZRPHQDOVRSODQWHGWR
ÁRXULVK
´7KLVZDVWKHPRVWGHJUDGHGDUHD
,KDGHYHUVHHQµVD\V7HZDUL´\HW
E\WKHVHFRQG\HDUWKHZRPHQZHUH
JHWWLQJUHWXUQVIURPWKLVDJURIRUHVWU\
HIIRUWµ7KHIRUPHUGLUHFWRUJHQHUDO
RIWKH,QGLDQ&RXQFLORI)RUHVWU\
5HVHDUFKDQG(GXFDWLRQH[SRXQGV
WKDWWKHVSHFLHVRIWKHZRUOG·V
IDVWHVWJURZLQJSODQWKDYHRYHU
UHFRUGHGXVHVDQGSURYLGHSRRU
'HYHORSPHQW$VLD -XO\²6HSWHPEHU
3!"-$";#
YLOODJHUVZLWKQXWULWLRXVEDPERR
VKRRWVSROHVIRUEXLOGLQJKRXVHV
OHDIOLWWHUIRUDQLPDOIHHGDQGLQFRPH
IURPKDQGLFUDIWV%\WKHHQGRIWKH
IRXUWK\HDUWKHSURÀWVSXVKHG
IDPLOLHVLQ.DXULKDUEORFNEDFNDERYH
WKHSRYHUW\OLQHZLWKDQQXDOHDUQLQJV
WHFKQRORJLFDOO\DGYDQFHGLQGXVWU\
RI,1%$5·VPHPEHUFRXQWULHV
IROORZHGE\9LHW1DP,QGRQHVLD
WKH3KLOLSSLQHV0DOD\VLDDQG,QGLD
ZKLFKDUHKHOSHGE\35&H[SHUWLVH
DQGWHFKQRORJ\WUDQVIHUVIDFLOLWDWHG
E\,1%$5WRPRGHUQL]HWKHLUEDPERR
3,&785(&5(',7,0$*(6285&(
LQGXVWULHV7KH,1%$5SDYLOLRQDW
WKH:RUOG([SRLQ6KDQJKDLLV
RQHRIPDQ\VKRZFDVLQJQHZDQG
WUDGLWLRQDOXVHVIRUEDPERRSURGXFWV
+RRJHQGRRUQVD\VJOREDOFRQVXPHUV
OLNHWKHQHZEDPERREHFDXVHSULFHV
DUHFRPSHWLWLYHDQGLWLV´JUHHQµ
ZZZGHYHORSPHQWDVLD
 $WD521$EXLOGLQJVXSSO\FKDLQ
VWRUHLQ%ULWLVK&ROXPELD&DQDGD
ÁRRULQJVSHFLDOLVW6X]DQQH%XEERLO
VD\VPRUHFXVWRPHUVDUHFKRRVLQJ
EDPERRÁRRULQJWKHVHGD\V´3HRSOH
ORRNIRUWKHHFRIULHQGO\ODEHOWKDW
FHUWLÀHVLWLVVXVWDLQDEOHDQGQRW
IURPH[SORLWHGODERUµVKHVD\V,Q
UHFHQWGXUDELOLW\WHVWVXQGHUWDNHQE\
&RQVXPHU5HSRUWVEDPERRÁRRULQJ
RXWSHUIRUPHGKDUGZRRGÁRRUV
LQFOXGLQJRDN
7KHUHQHZDEOHFUHGHQWLDOVRIEDPERR
DUHLPSHFFDEOHLWUHDFKHVPD[LPXP
3,&785(&5(',7+(0,6)5
VL]HLQMXVWWRGD\VFDQEH
FRPPHUFLDOO\KDUYHVWHGDIWHUWR
\HDUVDQGJURZVZLWKRXWIHUWLOL]HU
RQODQGXQVXLWDEOHIRUDJULFXOWXUDO
FURSV7KHHQWLUHWUHHLVXVHGWR
ZZZGHYHORSPHQWDVLD
PDNHHYHU\WKLQJIURPDFWLYDWHG
FKDUFRDOWRIDEULFDQGLISURSHUO\
PDQDJHGLWZLWKVWDQGVKDUYHVWLQJ³
XQOLNHKDUGZRRGWLPEHU³VLPSO\
UHJHQHUDWLQJWRSURGXFHPRUHEDPERR
3HWHU6MRYDOOFKLHIÀQDQFLDORIÀFHU
RI$VLDQ%DPERR³DOHDGLQJSURGXFHU
RIPRVREDPERRRQHRIWKHEHVW
VSHFLHVIRUEDPERREDVHGSURGXFWVLQ
WKH35&·V)XMLDQ3URYLQFH³VD\VKLV
FRPSDQ\LVH[SDQGLQJGXHWRDJOREDO
WUHQGWRZDUGVXVWDLQDEOHPDWHULDOV
DQGDJURZLQJLQWHUHVWLQRUJDQLF
IRRG$ERXWRISURÀWVFRPHIURP
EDPERRVKRRWVPRVWIRUGRPHVWLF
FRQVXPSWLRQDQGWKHUHVWIRUH[SRUW
7KHRWKHUFRPHVIURPVDOHVWR
QHDUE\WKLUGSDUW\PDQXIDFWXUHVRI
ÁRRULQJSDSHUDQGEDPERRSO\ERDUG
(9(5*5((1$PDUNHWLQ9LHW1DPVHOOV
IUHVKO\FXWEDPERRSROHV9HUVDWLOHDQG
IDVWJURZLQJWKLVWDOOJUDVVLVZLGHO\
FXOWLYDWHGLQ$VLDDQGKDVPDQ\XVHV\HW
LWUHPDLQVXQGHUXWLOL]HGVD\H[SHUWV
DQGIXUQLWXUHZKLFKHPSOR\ORFDO
ODERU7KHFRPSDQ\PDQDJHVDURXQG
KHFWDUHVRIEDPERRSODQWDWLRQV
ZKLFKDUHOHDVHGIURPFRRSHUDWLYHVRI
VPDOOIDUPHUV7KHIDUPHUVPDNHPRUH
PRQH\WKDQWKH\FRXOGRQWKHLURZQ
DVWKH\UHFHLYHERWKDQXSIURQWOHDVH
IHHDQGJHWSDLGIRUKDUYHVWLQJZRUN
$ERXWIDUPHUVDUHLQYROYHGLQ
KDUYHVWLQJDQGDURXQGSHRSOH
ZRUNLQORFDOEDPERRVKRRWSURFHVVLQJ
IDFWRULHV7KHFRPSDQ\HVWLPDWHVWKDW
EDPERRJHQHUDWHVWRWLPHVPRUH
-XO\²6HSWHPEHU 'HYHORSPHQW$VLD
 9,*655(0:(5*,

LQFRPHSHUXQLWRIODQGWKDQ&KLQHVH
ÀURUSLQHSODQWDWLRQV
9LHW1DPLVIRUJLQJDKHDGZLWK
WKHGHYHORSPHQWRILWVEDPERR
LQGXVWU\ZLWKWKHKHOSRIWHFKQRORJ\
WUDQVIHUVDQGH[SHUWLVHIURPWKH35&
IDFLOLWDWHGE\,1%$5DQH[DPSOH
RIKRZ,1%$5EULQJVH[SHUWVIURP
LWVPHPEHUFRXQWULHVWRJHWKHUWR
OHDUQIURPHDFKRWKHU,1%$5DLPV
WRVHWXSGHPRQVWUDWLRQSURMHFWV
LQ$IULFD$VLDDQG/DWLQ$PHULFD
WRKLJKOLJKWEHVWSUDFWLFHVIRUVRLO
ZDWHUDQGELRGLYHUVLW\FRQVHUYDWLRQ
UHKDELOLWDWLRQRIGHJUDGHGODQGVDQG
FDUERQVHTXHVWUDWLRQ

,03529,1*,1&20(6)257+(3225
)DVWJURZLQJVXVWDLQDEOHDQGULJKW
LQWKHEDFN\DUGRIPLOOLRQVRISRRU
$VLDQV³EDPERRLVDQXQGHUXVHG
UHVRXUFHZLWKWKHSRWHQWLDOWROLIWUXUDO
GZHOOHUVRXWRISRYHUW\DFFRUGLQJ
WR,1%$5·V+RRJHQGRRUQ6KHDQG
RWKHUH[SHUWVVWUHVVWKDWRQHRIWKHNH\
ZD\VWRLQFUHDVHKRXVHKROGLQFRPHV
LVWRNHHSDVPXFKSUHSURFHVVLQJ
DVSRVVLEOHFORVHWRWKHSURGXFLQJ
DUHDVZKHUHWKHIDUPHUVOLYHUDWKHU
WKDQZDVWLQJHQHUJ\WUDQVSRUWLQJ
UDZEDPERRWRGLVWDQWIDFLOLWLHV7KLV
PD\LQYROYHVLWLQJIDFWRULHVQHDUE\
RUXQGHUWDNLQJVLPSOHSUHSURFHVVLQJ
SUHVHUYDWLRQZKLFKLQYROYHVOHDFKLQJ URRIVKLQJOHVZKLFKQHWVWKHP +$5'<*5$667KHXVHRIEDPERRDV
WKHVWDUFKIURPUDZEDPERREHFDXVHLW DSROH+LVRUJDQL]DWLRQDOVRUXQV FRQVWUXFWLRQPDWHULDOFDQKHOSPDNH
DWWUDFWVLQVHFWVDQGIXQJXV ZRUNVKRSVLQEDPERRPDQDJHPHQW KRXVHVPRUHHDUWKTXDNHUHVLVWDQW
$ULHI5DELNFRRUGLQDWLQJGLUHFWRU DQGFXOWLYDWLRQRIYDOXDEOHDVVRFLDWHG
RIWKH(QYLURQPHQWDO%DPERR XQGHUVWRU\VSHFLHVVXFKDVWXUPHULF
)RXQGDWLRQLQ%DOL,QGRQHVLDVD\V JLQJHUDQGYDQLOOD´7KLVPHDQV FRRSHUDWLYHVZKLFKZLOOKHOSWRFUHDWH
WKLVSURFHVVFDQUDLVHWKHSULFHSHU IDUPHUVJRWRWKHLUEDPERRFOXPSV DVWDQGDUGSULFLQJV\VWHPIRUEDPERR
SROHIURPDERXWIRUUDZEDPERR PRUHIUHTXHQWO\DQGEHWWHUPDLQWDLQ 
WRIRUDSUHVHUYHGSROH³DFOHDU WKHP:HOOPDQDJHGEDPERRJURZV *52:,1*<2852:1+286(
H[DPSOHKRZWUDLQHGIDUPHUVFDQDGG VWUDLJKWDQGVWURQJ2YHU\HDUVWKLV %DPERRFRXOGVROYHWKHVFDUFLW\RI
YDOXH NLQGRIFDUHLQFUHDVHVSURÀWVE\XSWR VXVWDLQDEOHEXLOGLQJPDWHULDOVLQ
:KHQ5DELNYLVLWV,VHKLQHDVWHUQ WLPHVµVD\V5DELN XUEDQDQGUXUDODUHDVVD\V6KD\DP
%DOLWKHYLOODJHKHDGPDQSRLQWVRXW %DPERRUHSUHVHQWVDWUHPHQGRXV 3DXGHOFRRUGLQDWRURI,1%$5·V*OREDO
WKDWDOPRVWDOOWKHLQIUDVWUXFWXUHLQWKH RSSRUWXQLW\IRUPLOOLRQVRIWKHUXUDO %DPERR+RXVLQJ3URJUDPPH7KH
YLOODJHZDVIXQGHGZLWKSURÀWVIURPD SRRUKHVD\VEXWIDUPHUVQHHG SURJUDPVHHNVWRFUHDWHDIIRUGDEOH
3,&785(&5(',7$)3

KHFWDUHJURYHWKDWWKHFRPPXQLW\ KHOSWRXQGHUVWDQGWKDWVXVWDLQDEOH KRXVLQJIRUWKHSRRUDQGDYLDEOH

KDVFDUHIXOO\PDQDJHGIRUPRUHWKDQ PDQDJHPHQWSUDFWLFHVJRKDQGLQ VXSSO\FKDLQIURPUDZEDPERRWR
\HDUV5DELNKHOSHGWKHYLOODJHUV KDQGZLWKJRRGEXVLQHVVDQGWKDW HQJLQHHUHGSUHIDEULFDWHGKRXVHV
VHWXSWKHPDQXIDFWXUHRIEDPERR WKH\QHHGWRIRUPEHWWHUQHWZRUNVDQG 8QGHU3DXGHOWKHJURXSKDVVHWXS

'HYHORSPHQW$VLD -XO\²6HSWHPEHU ZZZGHYHORSPHQWDVLD


DVXSSO\FKDLQLQKLVQDWLYH1HSDO
DQGKDVDOUHDG\EXLOWORZFRVW
EDPERRKRXVHVDWOHVVWKDQKDOIWKH
FRVWRIFRQYHQWLRQDOXQVXVWDLQDEOH
PDWHULDOV³ZRRGFRQFUHWHDQG
VWHHO:KDW·VPRUHWKHSUHIDEULFDWHG
EDPERRKRXVHVDUHHDUWKTXDNH
UHVLVWDQWWHVWVLQ,QGLDKDYHVKRZQ
WKH\FDQHDVLO\ZLWKVWDQGDPDJQLWXGH
HDUWKTXDNH´7KHVHSUHIDEULFDWHG
EDPERRKRXVHVDUHHDV\WRFRQVWUXFW
KDYHJRRGLQVXODWLRQFKDUDFWHULVWLFV
DQGSDFNHGÁDWDUHFKHDSWR
WUDQVSRUWµVD\V3DXGHO7KHXVHRI
EDPERRLQKRXVHFRQVWUXFWLRQDOVR
3,&785(&5(',7$)3
KHOSVWRSUHYHQWGHIRUHVWDWLRQ
5HVHDUFKFRQGXFWHGLQ&RVWD5LFD
UHYHDOHGWKDWDVOLWWOHDVRQHHLJKWK
WKHDUHDRIQDWXUDOIRUHVWLVQHHGHGIRU
ZZZGHYHORSPHQWDVLD
DEDPERRSODQWDWLRQWRVXSSO\
EDPERRKRXVHV7KLVLVEHFDXVHRI
LWVVWUHQJWKIDVWJURZWKUDWHDQGWKH
JURZLQJVWRFNRIEDPERRFOXPSV
,1%$5·V&DUPHOLWD%HUVDORQDKDV
KHOSHGEDPERRPDNHUVLQ$EUD³
RQHRIWKHSRRUHVWDUHDVLQWKHQRUWKHUQ
3KLOLSSLQHV³UDLVHWKHLUHDUQLQJVE\
PDNLQJEDPERRPDWVIRUKLJKYDOXH
IXUQLWXUHDQGKRXVHFRPSRQHQWV
LQVWHDGRIORZHUYDOXHEDVNHWV
7KHGHYHORSPHQWRIQHZEDPERR
WHFKQRORJ\DQGGHVLJQVEULQJKLJKHU
HDUQLQJVWRFRPPXQLW\SURGXFHUV
0RUHRYHUWKHPHFKDQL]DWLRQRI
SURGXFWLRQKDVLQFUHDVHGSURGXFWLYLW\
HQDEOLQJPRUHSHRSOHWREHFRPH
FRRZQHUVRIFRPPXQLW\EDPERR
HQWHUSULVHV
(526,21&21752/9LOODJHUVFRQVWUXFW
DEDPERRZDOOWRSURWHFWWKHODQGDORQJ
WKHVHDVLGHLQ.RN.DUPLQ7KDLODQGҋV
YDVW&KDR3KUD\DULYHUGHOWDZKLFKLV
VLQNLQJEHFDXVHRIULYHUGDPPLQJDQG
WKHFOHDULQJRIPDQJURYHIRUHVWV
2QHSUREOHPWKDWPXVWEHRYHUFRPH
LQ1HSDODQGHOVHZKHUHLQ$VLD
DFFRUGLQJWR3DXGHOLVWKDWEDPERR
LVVHHQDVSRRUPDQ·VWLPEHUDVWLJPD
WKDWXQGHUPLQHVWKHEDPERR·V
SRWHQWLDOLQSURYLGLQJDIIRUGDEOH
KRXVLQJ+RZHYHU3DXGHOEHOLHYHVWKDW
WKLVLPDJHZLOOFKDQJHDVSHRSOHDFURVV
WKHVRFLDOVSHFWUXPDFFHSWEDPERRDVD
FRQVWUXFWLRQPDWHULDO
&$5%21+(52
%DPERRLVHIÀFLHQWDWVHTXHVWHULQJ
FDUERQGLR[LGHPDNLQJLWDYDOXDEOH
SOD\HULQJUHHQKRXVHJDVPLWLJDWLRQ
VD\V5DELNRIWKH(QYLURQPHQWDO
%DPERR)RXQGDWLRQ2YHURI
WKHFDUERQFRQWDLQHGLQEDPERR
FDQEHVHTXHVWHUHGLQORQJODVWLQJ
SURGXFWVVXFKDVÁRRUVIXUQLWXUH
DQGEXLOGLQJV,1%$5·VVXVWDLQDELOLW\
DQGFDUERQÀ[LQJFDSDFLW\VWXGLHV
FRQFOXGHWKDWEDPERR·VELRPDVV
DQGFDUERQSURGXFWLRQKDVEHHQ
IRXQGWREHURXJKO\HTXLYDOHQWWR
WKDWRIIDVWJURZLQJZRRGVSHFLHV
7KHRUJDQL]DWLRQLVLQYHVWLJDWLQJWKH
SRWHQWLDORIFDUERQFUHGLWVIRUEDPERR
FXOWLYDWLRQZLWKDYLHZWRVXSSRUWLQJ
WKHGHYHORSPHQWRIRWKHUZLVH
PDUJLQDOEDPERRSODQWDWLRQVLQSRRU
DUHDV
,Q7HZDUL·V8WWKDQ&HQWUHIRU
6XVWDLQDEOH'HYHORSPHQWDQG3RYHUW\
$OOHYLDWLRQUHFHLYHGWKHPLOOLRQ5LR
7LQWR$OFDQ3UL]HIRU6XVWDLQDELOLW\
IRUWKHLUZRUNLQUHVWRULQJVRLOPLQHG
DUHDVDURXQGFLWLHVGHJUDGHGIRUHVW
ODQGVGU\ODQGVDQGZDVWHODQGV7KHLU
HIIRUWVLQGLVWULFWVLQ8WWDU3UDGHVK
VXFFHVVIXOO\XVHGEDPERRWRUHFODLP
KHFWDUHVRIGHJUDGHGODQG
EHQHÀWLQJIDPLOLHV´%DPERR
FDQUHVWRUHDQGUHSDLUHYHQWKHZRUVW
VRLOµVD\V7HZDULQ
-XO\²6HSWHPEHU 'HYHORSPHQW$VLD
 65;/,9,*69+

47KHJDSVEHWZHHQWKHSROLWLFDO 450%
SDUWLFLSDWLRQRIPHQDQGRIZRPHQ
LQWKH$VLD3DFLILFDUHDPRQJWKH >UHQPLQEL
ODUJHVWLQWKHZRUOG5

DOVRNQRZQ
+HOHQ&ODUNDGPLQLVWUDWRURIWKH8QLWHG1DWLRQV
'HYHORSPHQW3URJUDPPHRQWKHRFFDVLRQRIWKHODXQFK
DV\XDQ@
RIWKHUHSRUW 
 



 


 
LQ0DUFK
DSSUHFLDWLRQ
ZRXOGQHLWKHU
EDODQFH6LQR86
4:HFDQKDQGOH WUDGHQRUVROYHWKH
GLSORPDWLFLVRODWLRQ XQHPSOR\PHQW
EXWHFRQRPLFLVRODWLRQ SUREOHPLQWKH
LVIDWDO5 8QLWHG6WDWHV5
7DLSHL&KLQD3UHVLGHQW0D<LQJMHRXH[SODLQVKLVUDWLRQDOH 3UHVLGHQW+X-LQWDRRIWKH3HRSOHâV5HSXEOLF
IRUHQWHULQJDQHFRQRPLFFRRSHUDWLRQIUDPHZRUN RI&KLQDLQDPHHWLQJZLWK863UHVLGHQW
DJUHHPHQWZLWKWKH3HRSOHâV5HSXEOLFRI&KLQD %DUDFN2EDPDLQ:DVKLQJWRQLQ$SULO

4%\VWUHQJWKHQLQJWKHHFRQRPLF 40\7ZLWWHU
EDVHRIDPXOWLSRODUZRUOGWKH DFFRXQWLV
%5,&FRXQWULHVDUHREMHFWLYHO\ RSHQIRU\RXWR
KHOSLQJWRFUHDWHFRQGLWLRQVIRUWKH GHQRXQFHWKHP5
VWUHQJWKHQLQJRIJOREDOVHFXULW\5 9HQH]XHODQ3UHVLGHQW+XJR&KDYH]XUJHV
VXSSRUWHUVWRXVH7ZLWWHUWRUHSRUWFXUUHQF\
5XVVLDQ3UHVLGHQW'PLWU\0HGYHGHYTXRWHGDWD%5,&VXPPLW VSHFXODWRUVRQKLVZHHNO\UDGLRDQG
LQ%UDVLOLDLQ$SULO WHOHYLVLRQVKRZ

4$QGLILWPHDQVVZDOORZLQJVRPH
KXPEOHSLHDQGLILWPHDQVHDWLQJVRPH
RI\RXUZRUGV,FDQQRWWKLQNRIDPRUH
H[FHOOHQWGLHWRQZKLFKWRSURYLGHWKH
3,&785(&5(',7$)3

FRXQWU\ZLWKJRRGJRYHUQPHQW5
%ULWDLQâVQHZ3ULPH0LQLVWHU'DYLG&DPHURQRQZRUNLQJZLWKSROLWLFDOULYDO1LFN&OHJJ
QRZ'HSXW\3ULPH0LQLVWHU

'HYHORSPHQW$VLD -XO\²6HSWHPEHU ZZZGHYHORSPHQWDVLD

 1 billion people potentially affected by climate change

75 percent of the world’s illiterates

620 million people living on less than $1 a day


 
by reducing these numbers

FIGHTING POVERTY IN ASIA AND THE PACIFIC

www.adb.org/poverty
© Pokonobe Associates © Hasbro, Inc. ©1986 Panda symbol WWF-World Wide Fund For Nature (also known as World Wildlife Fund ) ® WWF Registered Trademark