Sie sind auf Seite 1von 19

&+$37(5 7+( /$%250$5.

(7  75(1'6 &+$5$&7(5,67,&6
$1' &+$//(1*(6

,,QWURGXFWLRQ

 /DERULWLVRIWHQVDLGLV%DQJODGHVK¶VPRVWSUHFLRXVUHVRXUFH7KLVSUHFLRXVUHVRXUFHXQGHUWKH
ULJKW FRQGLWLRQV KDV WKH SRWHQWLDO WR XQOHDVK D UDSLG WUDQVLWLRQ WRZDUG SURVSHULW\ DV WKH (DVW $VLDQ
HFRQRPLHVKDYHVKRZQZLWKRXWKDYLQJWKHEHQHILWRIDQDWXUDOUHVRXUFHERXQW\$UHODWLYHDEXQGDQFHRI
ODERU SURYLGHV %DQJODGHVK ZLWK D FRPSDUDWLYH DGYDQWDJH LQ SURGXFWLRQ RI ODERULQWHQVLYH JRRGV  2I
FRXUVHJOREDOFRPSDUDWLYHDGYDQWDJHGRHVQRWDXWRPDWLFDOO\WUDQVODWHLQWRJOREDOFRPSHWLWLYHQHVVZKLFK
GHSHQGV RQ D KRVW RI IDFWRUV WKDW DIIHFW SURGXFWLYLW\  3URGXFWLYLW\ LQ %DQJODGHVK GRHV VXIIHU IURP D
QXPEHURISUREOHPVWKDWDUHKLJKOLJKWHGLQWKHRWKHUFKDSWHUVRIWKLVUHSRUW$UHWKHUHLQHIILFLHQFLHVLQ
WKHODERUPDUNHWLWVHOIZKLFKXQGHUFXWRYHUDOOSURGXFWLYLW\RIWKHHFRQRP\"7KLVFKDSWHUDVVHVVHVWKHNH\
ODERUPDUNHWWUHQGVDQGFKDUDFWHULVWLFVLQVHHNLQJWRDQVZHUWKLV

 &UHDWLQJ SURGXFWLYH HPSOR\PHQW RSSRUWXQLWLHV IRU D UDSLGO\ JURZLQJ ODERU IRUFH FOHDUO\ LV D
PDMRUFKDOOHQJHIRUWKH%DQJODGHVKLHFRQRP\,WVVXEVWDQWLDOODERUIRUFHRIDERXWPLOOLRQLVJURZLQJ
DW D UDSLG  SHUFHQW SHU \HDU ± DGGLQJ MXVW XQGHU  PLOOLRQ ZRUNHUV HDFK \HDU  7KH UDSLG ODERU IRUFH
JURZWK GHULYHV IURP WZR PDLQ VRXUFHV WKH GHPRJUDSKLF WUDQVLWLRQ ZKLFK LV UHVXOWLQJ LQ D VXUJH RI
\RXWKIXOHQWUDQWVLQWRWKHODERUPDUNHWDQGWKHVKDUSLQFUHDVHLQIHPDOHODERUIRUFHSDUWLFLSDWLRQVLQFH
WKHPLGV([SHFWHGO\JLYHQ%DQJODGHVK¶VORZGHYHORSPHQWOHYHODOPRVWKDOIWKHODERUIRUFHLVVWLOO
LQWKHDJULFXOWXUHVHFWRUDQGWKUHHTXDUWHUVDUHLQUXUDODUHDV$WWKHVDPHWLPHWKHODERUIRUFHDSSHDUVWR
EHLQWKHPLGVWRIWUDQVLWLRQLQJIURPUXUDOWRXUEDQDUHDVFRQVLVWHQWZLWKWKHRYHUDOOHFRQRPLFVKLIWWKDWLV
GLVFXVVHGLQ&KDSWHUDQGIURPDJULFXOWXUHWRUXUDOQRQIDUPDFWLYLWLHV

 'HVSLWHWKHFRQVLGHUDEOHSUHVVXUHVODERUPDUNHWRXWFRPHVKDYHEHHQJHQHUDOO\IDYRUDEOH)RU
RQH PRVW QHZ HQWUDQWV EHWZHHQ  DQG  WKH \HDUV LQ ZKLFK WKH ODWHVW DYDLODEOH /DERU )RUFH
6XUYH\V ZHUH FRQGXFWHG  ZHUH DEOH WR ILQG D MRE NHHSLQJ WKH XQHPSOR\PHQW UDWH DW DERXW  SHUFHQW
+RZHYHUWKLVLVVOLJKWO\WHPSHUHGE\WKHIDFWWKDWWKHHQWUDQWVZHUHSDUWLDOO\DFFRPPRGDWHGE\VKDULQJ
VRPHRIWKHH[LVWLQJMREVDVLQGLFDWHGE\DGHFOLQHLQWKHDYHUDJHKRXUVZRUNHGSHUZHHNSHUZRUNHULQ
DOO HFRQRPLF VHFWRUV GXULQJ   5LVLQJ UHDO ZDJHV DFURVV WKH PDMRU HFRQRPLF VHFWRUV SURYLGH
IXUWKHUHYLGHQFHRIODERUPDUNHWWLJKWHQLQJGHVSLWHWKHUDSLGO\JURZLQJODERUVXSSO\

 $WWKHVDPHWLPHWKRXJKVRPHLPSRUWDQWDVSHFWVRIWKHODERUPDUNHWGHVHUYHFORVHUDWWHQWLRQ
7KH XQHPSOR\PHQW UDWH LV  SHUFHQW IRU WKH  \HDU ROGV DQG HYHQ KLJKHU IRU WKRVH ZLWK KLJKHU
VHFRQGDU\RUGHJUHHHGXFDWLRQ7KHLQFRPHOHYHOVRIWKHVHOIHPSOR\HGZRUNHUV ZKRDFFRXQWIRUDOPRVW
KDOI WKH ZRUNIRUFH  DSSHDU WR KDYH GHFOLQHG RYHU WKH  SHULRG  )XUWKHUPRUH WKH IRUPDO VHFWRU
FRPSULVHVRQO\DERXWDILIWKRIWKHODERUIRUFH DOWKRXJKWKLVUDWLRLVKLJKHUWKDQLQ,QGLD DQGVKRZVQR
VLJQVRISLFNLQJXS±LQIDFWGDWDIRUWKHSHULRGVKRZDGHFOLQHLQWKHIRUPDOVHFWRU¶VVKDUH
7KHVKDUHRI³XQSDLGIDPLO\ZRUNHUV´LQWKHZRUNIRUFHLQFUHDVHGRYHUWKHSHULRGDWWKHH[SHQVH
RIDOORWKHUMREVWDWXVHVH[FHSW³HPSOR\HUV´

 $ SDUWLFXODU FRQFHUQ DIIOLFWLQJ WKH ODERU PDUNHW LV DFXWH VNLOOV VKRUWDJHV  1RW RQO\ DUH WKH
HGXFDWLRQOHYHOVDPRQJWKHZRUNIRUFHORZWKHHGXFDWLRQDQGYRFDWLRQDOWUDLQLQJV\VWHPDUHQRWJHDUHG
WRZDUGWKH PDUNHW QHHGV2QDYHUDJHWKH HPSOR\HG ODERU IRUFH KDV RQO\ \HDUV RI VFKRROLQJ  ,W LV D
PDMRUORVVWRSURGXFWLYLW\ZKHQHYHQWKLVVFDUFHKXPDQFDSLWDOLVQRWSURSHUO\XWLOL]HGDVKLJKOLJKWHGE\
WKHIDFWWKDWDOPRVWRQHIRXUWKRIWKHXQHPSOR\HGKROGD66&+6&RUKLJKHUGHJUHH)XUWKHUPRUHMXVW
RYHUSHUFHQWRIWKHODERUIRUFHKDVKDGWHFKQLFDOWUDLQLQJRUYRFDWLRQDOHGXFDWLRQDQGHYHQDPRQJWKRVH


7KH/DERU)RUFH6XUYH\ /)6 HVWLPDWHGWKHODERUIRUFHVL]HDWPLOOLRQ,WDOVRHVWLPDWHGWKHDQQXDO
LQFUHDVHLQODERUIRUFHDWRYHUPLOOLRQZKLFKZRXOGLPSO\DODERUIRUFHRIRYHUPLOOLRQWRGD\


%DQJODGHVK6WUDWHJ\IRU6XVWDLQHG*URZWK

WKH UHOHYDQFH RI WKHLU VNLOOV LV TXHVWLRQDEOH  7KH ORZ TXDOLW\ RI WKH YRFDWLRQDO HGXFDWLRQ DQG WUDLQLQJ
9(7 V\VWHPLVUHIOHFWHGE\LWVORZFDSDFLW\XWLOL]DWLRQDQGSDVVUDWHVDQGDOVRE\WKHZHDNGHPDQGIRU
LWVJUDGXDWHV$WUDFHUVWXG\VKRZVWKDWOHVVWKDQSHUFHQWRI9(7JUDGXDWHVZHUHHPSOR\HGRYHUWZR
\HDUVDIWHUWKHVXUYH\ZKLOHFORVHWRKDOIWKHJUDGXDWHVWRRNDWOHDVWD\HDUWRILQGDMREDQGWKLVLQDQ
HFRQRP\ ZKHUH VNLOOV DUH GHHPHG WR EH DFXWH VKRUWDJH  1RW RQO\ WKDW ZDJHV RI 9(7 JUDGXDWHV
DSSDUHQWO\DUHORZHUWKDQWKRVHRIJUDGXDWHVIURPWKHJHQHUDOHGXFDWLRQV\VWHP

 2WKHUNH\LGHQWLILDEOHGLVWRUWLRQVLQWKHODERUPDUNHWLQFOXGH
x 7KHUH LV D FOHDU VHJPHQWDWLRQ RI WKH SXEOLF DQG SULYDWH MRE PDUNHWV ± WKLV LV DSSDUHQW LQ WKH
FRQVLGHUDEOH ZDJH SUHPLXP RYHU  SHUFHQW  IRU SXEOLF MREV DIWHU WDNLQJ LQWR DFFRXQW ZRUNHU
FKDUDFWHULVWLFV VXFK DV HGXFDWLRQ VNLOO JHQGHU HWF  $QDO\VHV KDYH VKRZQ WKH GLVSDULW\ WR EH
VKDUSHU DW WKH ORZHUHQG FODVVHV ,,, DQG ,9  SXEOLF VHFWRU MREV  1RW RQO\ GRHV WKLV OHDG WR
UDWLRQLQJRIWKHKLJKSUHPLXPSXEOLFVHFWRUMREVLWDOVRGLVWRUWVZDJHVLJQDOVDFURVVWKHHFRQRP\
x $QRWKHUVHJPHQWDWLRQLVEHWZHHQXUEDQDQGUXUDODUHDV(FRQRPHWULFDQDO\VLVLQWKLVFKDSWHU
VKRZVWKDWXUEDQDUHDVSURYLGHPRUHHPSOR\PHQWRSSRUWXQLWLHV PRUHKRXUVRIHPSOR\PHQW DQG
DVLJQLILFDQWZDJHSUHPLXP7KHEDUULHUVWRUXUDOXUEDQPRELOLW\RIODERU±WKDWZRXOGDOVREH
SURGXFWLYLW\ LPSURYLQJ ± OLNHO\ KDYH WR GR ZLWK WKH VKDQW\ OLYLQJ FRQGLWLRQV LQ WKH FLWLHV
HVSHFLDOO\IRUIUHVKPLJUDQWVDQGWKHSRRUDQGWKHKLJKHUFRVWRIOLYLQJ$QXUEDQDJHQGDRIWKH
VRUWGLVFXVVHGLQ&KDSWHU ZRXOGZRUNWRLPSURYHWKLV
x )HPDOHZRUNHUVFRQWLQXHWRIDFHFRQVLGHUDEOHEDUULHUV,PSURYHPHQWVQRWZLWKVWDQGLQJRQO\D
TXDUWHURIZRUNLQJDJHIHPDOHVSDUWLFLSDWHLQWKHODERUIRUFHDQGZDJHVIRUIHPDOHZRUNHUVDUH
VLJQLILFDQWO\ORZHUWKDQIRUPDOHZRUNHUVZLWKVLPLODUFKDUDFWHULVWLFV7KLVHPDQDWHVPRVWO\IURP
WKH VRFLDO EDUULHUV FRPPRQO\ VHHQ LQ GHYHORSLQJ FRXQWULHV EXW LW LV KDUG WR LPDJLQH D SDWK RI
UDSLGGHYHORSPHQWLIWKUHHTXDUWHUVRIIHPDOHVDUHQRWWKHUHWRSDUWLFLSDWHLQDQGVKDSHLW7KH
VROXWLRQVRIPRUHHGXFDWLRQDQGIHPDOHHPSRZHUPHQWDUHKDSSHQLQJEXWFRXOGEHVSHHGHGXS

 2Q EDODQFH ODERU ODZV DQG UHJXODWLRQV GR QRW DSSHDUV WR EH VHULRXV KLQGUDQFHV WR WKH
IXQFWLRQLQJ RI WKH ODERU PDUNHW DOWKRXJK ZRUNHU ULJKWV QHHG EHWWHU SURWHFWLRQ  /DZV DQG UXOHV DUH
UHODWLYHO\OLJKWDQGLIDQ\WKLQJVXIIHUIURPLQHIIHFWLYHHQIRUFHPHQW±FHUWDLQO\WKHUHDUHQRVLJQVRIWKH
GUDFRQLDQODERUUHJXODWLRQVVHHQLQ,QGLD2YHUDOOILUPVUHWDLQFRQVLGHUDEOHIOH[LELOLW\WRKLUHDQGILUHDV
FRQILUPHGE\WKH,QYHVWPHQW&OLPDWH$VVHVVPHQW DQG 'RLQJ%XVLQHVVVXUYH\UHVXOWV$WWKHVDPHWLPH
WKRXJK ODFN RI RUJDQL]HG XQLRQ DFWLYLW\ LQ WKH IRUPDO SULYDWH VHFWRU ZKHUH RQO\ DERXW RQH ZRUNHU LQ
WZHQW\LVFRYHUHGDOVRKDVLWVGRZQVLGHVHVSHFLDOO\VLQFHLWDULVHVIURPJRYHUQPHQWUHVWULFWLRQVZKLFK
WKH ,/2¶V &RPPLWWHH RI ([SHUWV RQ WKH $SSOLFDWLRQ RI &RQYHQWV DQG 5HFRPPHQGDWLRQV KDV GHHPHG
H[FHVVLYHO\ UHVWULFWLYH  6XFK OLPLWHG XQLRQ DFWLYLW\ KDQGLFDSV ZRUNHUV¶ DELOLW\ WR HQJDJH LQ FROOHFWLYH
EDUJDLQLQJDQGSURWHFWWKHLUULJKWVDQGKLQGHUVWKHIRUPDWLRQRIDQHIIHFWLYHPHFKDQLVPWRUHVROYHODERU
GLVSXWHV  7KH UHFHQW LPSDVVH LQ WKH 50* VHFWRU RYHU ZRUNHU GHPDQGV IRU KLJKHU PLQLPXP ZDJHV
KLJKOLJKWV WKH FRVWV RI WKH ODWWHU SUREOHP  ,W LV QRW FOHDU WKRXJK ZKHWKHU WKH UHVROXWLRQ WR WKLV LV
JRYHUQPHQWLQWHUYHQWLRQDQGLIDWDOOLQZKDWVKDSHDQGIRUP

,, /DERU0DUNHW7UHQGVLQ%DQJODGHVK

/RQJWHUP 'HPRJUDSKLF 7UHQGV 7UDQVLWLRQ WR D <RXQJHU 0RUH *HQGHU%DODQFHG DQG 0RUH
8UEDQL]HG3RSXODWLRQ

 %DQJODGHVK¶V SRSXODWLRQ KDV DOPRVW WULSOHG VLQFH  ± LQFUHDVLQJ IURP  PLOOLRQ
LQKDELWDQWVWRRYHUPLOOLRQ)HPDOHSRSXODWLRQKDVJURZQIDVWHUWKDQPDOHSRSXODWLRQUHIOHFWLQJWKH
LPSUHVVLYH XQGHUO\LQJ LPSURYHPHQWV LQ JHQGHU SDULW\ ZLWK WKH VKDUH RI IHPDOH SRSXODWLRQ LQ WRWDO


7KH%DQJODGHVK9RFDWLRQDO(GXFDWLRQDQG7UDLQLQJ6\VWHP$Q$VVHVVPHQW:RUOG%DQN


&KDSWHU7KH/DERU0DUNHW7UHQGV&KDUDFWHULVWLFVDQG&KDOOHQJHV

SRSXODWLRQ LQFUHDVLQJ IURP  SHUFHQW LQ  WR  SHUFHQW LQ  VOLJKWO\ KLJKHU WKDQ LQ ,QGLD DQG
3DNLVWDQ%DQJODGHVKKDVH[SHULHQFHWKHELJJHVWLQFUHDVHLQWKHUDWLRLQWKH6RXWK$VLDUHJLRQVLQFH
7DEOH 7KLVLVDQLPSUHVVLYHLIVRPHZKDWXQGHUUHSRUWHGDFKLHYHPHQWWKDWEHQHILWVIURPLQFUHDVLQJ
HPSRZHUPHQW RI IHPDOHV LQ WKH VRFLDO VSKHUH ± IHPDOH SULPDU\ HQUROOPHQW UDWHV DUH KLJKHU WKDQ PDOH
HQUROOPHQWUDWHVIRUH[DPSOH7KHUDSLGXUEDQL]DWLRQRIWKHSRSXODWLRQLVGLVFXVVHGLQ&KDSWHU

7DEOH5DWLRRI)HPDOH3RSXODWLRQWR7RWDO3RSXODWLRQ
     
%DQJODGHVK      
,QGLD      
1HSDO      
3DNLVWDQ      
6UL/DQND      
6RXUFH:RUOG'HYHORSPHQW,QGLFDWRUV:RUOG%DQN

 7KH JURZWK RI WKH ZRUNLQJDJH SRSXODWLRQ KDV RXWSDFHG WKDW RI WKH SRSXODWLRQ DV D ZKROH
:KLOH WRWDO SRSXODWLRQ KDV LQFUHDVHG E\ DERXW  SHUFHQW EHWZHHQ  ZRUNLQJDJH SRSXODWLRQ
WKRVHLQWKHDJHJURXS SUDFWLFDOO\GRXEOHG±LQFUHDVLQJIURPPLOOLRQLQWRPLOOLRQLQ
'HPRJUDSKLFIDFWRUVVXFKDVLQFUHDVHGOLIHH[SHFWDQF\DQGPDUNHGO\ORZHULQIDQWPRUWDOLW\KDYH
RIIVHWWKHVORZGRZQLQSRSXODWLRQJURZWK IURPSHUFHQWLQWKHVWRDERXWSHUFHQW UHVXOWLQJ
LQZRUNLQJDJHSRSXODWLRQJURZWKUHPDLQLQJODUJHO\XQFKDQJHGDWDERXWSHUFHQWSHUDQQXP8QGHU
PRUWDOLW\UDWHVIHOOIURPSHUOLYHELUWKVLQWRLQRQHRIWKHIDVWHVWUDWHVRIGHFOLQH
LQ WKHGHYHORSLQJ ZRUOG /LIH H[SHFWDQF\ DW ELUWK LQFUHDVHG IURP  \HDUV WR  \HDUV RYHU WKH VDPH
SHULRG  7KH ODERU GLYLGHQGV IURP WKH RQJRLQJ GHPRJUDSKLF WUDQVLWLRQ DUH H[SHFWHG WR FRQWLQXH IRU D
FRQVLGHUDEOHDOWKRXJKDWDGHFOLQLQJUDWH7KHJURZWKUDWHRIZRUNLQJDJHSRSXODWLRQLVH[SHFWHGWRVORZ
GRZQWRSHUFHQW D \HDU LQ WKH FRPLQJ\HDUV  6WLOO PRUH WKDQ RQHWKLUG RI WKH SRSXODWLRQLV FXUUHQWO\
XQGHU WKH ZRUNLQJ DJH D VL]DEOH SRRO WR IHHG UREXVW ODERU VXSSO\ JURZWK 8QGHU FHUWDLQ EDVHOLQH
DVVXPSWLRQVWKHZRUNLQJDJHSRSXODWLRQLVH[SHFWHGWRLQFUHDVHE\SHUFHQWE\WKH\HDU

)LJXUH$JH:LVH'HPRJUDSKLF7UHQGVLQ%DQJODGHVK



3 RSXODW LRQ 6 L] H P LOOLRQV












































7RWDO3RSXODWLRQ 3RSXODWLRQDJHG
3RSXODWLRQDJHG 3RSXODWLRQDJHG

6RXUFH:RUOG'HYHORSPHQW,QGLFDWRUV:RUOG%DQN


:RUNLQJDJHSRSXODWLRQHVWLPDWHVYDU\E\VRXUFH:KLOHWKH:RUOG%DQN¶V:',GDWDVKRZDYHUDJHJURZWK
GXULQJWKHV YLUWXDOO\WKHVDPHDVLQWKHV WKH,/2DQGWKH86&HQVXV%XUHDXHDFKUHSRUWWKHJURZWKUDWH
DWDERXWSHUFHQWDERXWRQHSHUFHQWDJHSRLQWKLJKHUWKDQWKHDYHUDJHJURZWKUHSRUWHGE\WKH,/2IRUWKHV

 (YHQ VR %DQJODGHVK VWLOO KDV ORQJ ZD\V WR JR  -XVW WR PHHW LWV 0'* %DQJODGHVK QHHGV WR ORZHU WKH 8
PRUWDOLW\UDWHWRE\$IWHUWKDWDWDUJHWUDWHRI±WKHFXUUHQWUDWHRI6UL/DQND±RUOHVVFDQEHVHW

7KHSUHFLVHGHPRJUDSKLFDVVXPSWLRQV±UHJDUGLQJELUWKDQGGHDWKUDWHVSRSXODWLRQJURZWKIHUWLOLW\UDWHVLQIDQW
DQGFKLOGPRUWDOLW\DQGOLIHH[SHFWDQF\±FDQEHIRXQGLQWKH:RUOG%DQN¶V6,0$GDWDEDVH


%DQJODGHVK6WUDWHJ\IRU6XVWDLQHG*URZWK

/DERU)RUFHDQG(PSOR\PHQW7UHQGV

$UDSLGO\JURZLQJODERUIRUFH

 7KH/)6HVWLPDWHGWKHVL]HRIWKHHFRQRPLFDOO\DFWLYHSRSXODWLRQRUWKHODERUIRUFHWREH
 PLOOLRQ ± RU DERXW  SHUFHQW RI WKH ZRUNLQJDJH SRSXODWLRQ )LJXUH D   5HIOHFWLQJ WKH
SUHGRPLQDQWO\UXUDOSRSXODWLRQLQ%DQJODGHVKSHUFHQWRIWKHODERUIRUFHUHVLGHGLQUXUDODUHDV7KH
IHPDOHODERUIRUFHZDVHVWLPDWHGDWDERXWPLOOLRQRUSHUFHQWRIWKHWRWDOODERUIRUFH&RQVLVWHQW
ZLWKWKHGHPRJUDSKLFWUHQGVVXUYH\UHVXOWVVKRZHGWKHODERUIRUFHWREHTXLWH\RXQJZLWKRYHUKDOIWKH
ZRUNHUVIDOOLQJLQWKHDJHJURXS )LJXUHE 

)LJXUHD/DERU)RUFH7UHQGV  )LJXUHE$JH3URILOHRI/DERU)RUFH
 
 

 )HPDOH

VKDUH RI O DERU IRUFH 



 
P L O O L R Q V  RI  SH R SO H


 0DOH

 
 
 





8UEDQ 8UEDQ 8UEDQ 5XUDO 5XUDO 5XUDO 1DWLRQDO 1DWLRQDO 1DWLRQDO
     
0DOH )HPDOH 7RWDO 0DOH )HPDOH 7RWDO 0DOH )HPDOH 7RWDO $JH

6RXUFH%DQJODGHVK/DERU)RUFH6XUYH\V YDULRXV\HDUV 

 7KH ODERU IRUFH KDV JURZQ DW D IDVW SDFH UHIOHFWLQJ ERWK WKH UDSLGO\ LQFUHDVLQJ ZRUNLQJDJH
SRSXODWLRQDQGPRUHUHFHQWO\VKDUSLQFUHDVHVLQWKHIHPDOHODERUIRUFHSDUWLFLSDWLRQUDWH /)35 $V
WKHZRUNLQJDJHSRSXODWLRQLQFUHDVHGE\RYHUPLOOLRQEHWZHHQWKHODERUIRUFHLQFUHDVHG
E\RYHUPLOOLRQ )LJXUHD PLOOLRQEHWZHHQDQGDQRWKHUPLOOLRQEHWZHHQ
ZLWKDYHUDJHDQQXDOODERUIRUFHJURZWKRISHUFHQWRYHUWKHSHULRG&RQVLVWHQWZLWK
WKH RYHUDOO SRSXODWLRQ SDWWHUQV WKH ODERU IRUFH LV DOVR EHFRPLQJ LQFUHDVLQJO\ XUEDQL]HG ± XUEDQ ODERU
IRUFH¶VVKDUHLQWRWDOLQFUHDVHGIURPSHUFHQWWRSHUFHQWRYHU

 7KHIHPDOHODERUIRUFHDOPRVWGRXEOHGLQVL]HEHWZHHQWRPLOOLRQZKLOHWKHPDOH
ODERU IRUFH JUHZ E\ MXVW  SHUFHQW  7KH IHPDOH ODERU IRUFH JUHZ DW DQ DVWRXQGLQJ DQQXDO UDWH RI 
SHUFHQW RYHU  ZKLFK WKHQ VORZHG GRZQ D ELWEXW VWLOO UHPDLQHG KLJK DW  SHUFHQW GXULQJ WKH
SHULRG7KH/)35LQFUHDVHGVKDUSO\IRUIHPDOHVLQXUEDQDQGUXUDODUHDVDQGLQERWKDUHDVWKH
LQFUHDVH ZDV PRUH SURQRXQFHG LQ WKH  SHULRG WKDQ WKH  SHULRG )LJXUH D 
$OPRVWPLOOLRQDGGLWLRQDOIHPDOHZRUNHUVHQWHUHGWKHODERUIRUFHGXULQJGXHWRWKHLQFUHDVH
LQWKHIHPDOH/)35DORQH1RQHWKHOHVVEHFDXVHRIWKHORZVWDUWLQJEDVHWKHIHPDOHODERUIRUFHUHPDLQV
OHVV WKDQ D WKLUG RI WKH PDOH ODERU IRUFH RI  PLOOLRQ  ,Q WKH PHDQZKLOH WKH PDOH /)35 UHPDLQHG
YLUWXDOO\XQFKDQJHGRYHU


7KH/)6DOVRFRXQWVWKRVHDJHG\HDUVDVEHLQJSDUWRIWKHODERUIRUFH7KLVJURXSZLWKPLOOLRQSHUVRQV
FRPSULVHVMXVWRIWKHWRWDOODERUIRUFHWKRXJK

7KHLQFUHDVHLQWKHSRSXODWLRQDJHGGXULQJWKHSHULRGZDVPLOOLRQDVSHUWKH/)6DQG
PLOOLRQDVSHUWKH:RUOG'HYHORSPHQW,QGLFDWRUV


&KDSWHU7KH/DERU0DUNHW7UHQGV&KDUDFWHULVWLFVDQG&KDOOHQJHV

)LJXUHD&KDQJHVLQ/)352YHU7LPH)LJXUHE$JH/)355HODWLRQVKLS
 
 

 


 

S H UF H Q W

/ )3 5

 8UEDQ0DOH 5XUDO0DOH

8UEDQ)HPDOH 5XUDO)HPDOH
 

 



8 UE D Q  7 R W D O

5 X UD O  7 R W D O

1D W LR QD O

1D W LR QD O

1D W LR QD O
8 UE D Q  0 D O H

) HP DOH

5 X UD O  0 D O H

) HP DOH

) HP D OH
8 UE D Q

5 X UD O

7 RWDO
0 DOH


   

   

   

   

   

   

   

   

   

   
$JH

6RXUFH%DQJODGHVK/DERU)RUFH6XUYH\V YDULRXV\HDUV 

 7KH DJH SDWWHUQV RI /)35V GLIIHU FRQVLGHUDEO\ EHWZHHQ PDOH DQG IHPDOH ZRUNHUV )LJXUH
E 7KHPDOHDJH/)35UHODWLRQVKLSKDVDQLQYHUVH8VKDSHGSDWWHUQ7KH\RXQJHVWDQGROGHVWPDOH
ZRUNHUV KDYH WKH ORZHVW /)35  /)35 IRU PDOHV LQ WKH  DJHJURXS ZDV FORVH WR  SHUFHQW DQG
RYHUSHUFHQWIRUWKHDJHJURXS7ZRWKLUGRIPDOHVZRUNHYHQDIWHUWKHDJHRI/)35IRU
WKRVHLQWKH\HDUDJHJURXSZDVRQO\SHUFHQWUHIOHFWLQJLQSDUWVFKRROHQUROPHQW7KH/)35
SDWWHUQLVDOPRVWLGHQWLFDOIRUUXUDODQGXUEDQPDOHVZLWKWKH/)35RIXUEDQ\RXWKEHLQJORZHUUHIOHFWLQJ
GLIIHUHQFHVLQVFKRROHQUROPHQW7KHDJH/)35UHODWLRQVKLSIRUIHPDOHZRUNHUVVKRZVDGLIIHUHQWSDWWHUQ
DQGDOVRVRPHXUEDQUXUDOYDULDWLRQ)RURQHWKHIHPDOH/)35LVVLJQLILFDQWO\ORZHUWKDQWKHPDOH/)35
IRUDOODJHJURXSV7KHXUEDQIHPDOH/)35VDUHKLJKHUIRUDOODJHJURXSVH[FHSWWKHDJHJURXSDV
JLUOVLQXUEDQDUHDVDUHPRUHOLNHO\WREHHQUROOHGLQVFKRRO/)35VIRUERWKUXUDODQGXUEDQIHPDOHVGURS
SUHFLSLWRXVO\IURPWKHDJHJURXSWRDJHJURXSIURPDERXWDWKLUGIRUXUEDQIHPDOHVDQG
SHUFHQW IRU UXUDO IHPDOHV WR DURXQG RQHTXDUWHU IRU ERWK PRVW OLNHO\ EHFDXVH RI PDUULDJH  )RU UXUDO
IHPDOHVWKH/)35WKHQUHPDLQVYLUWXDOO\FRQVWDQWWLOODJHZKLOHIRUXUEDQIHPDOHVLWLQFUHDVHVDELWLQ
WKDWLQWHUYDO7KH/)35VIRUERWKJURXSVGHFOLQHIURPWKHDJHJURXSRQZDUG

(PSOR\PHQWDQGXQGHUHPSOR\PHQWWUHQGV

 7KH%DQJODGHVKLHFRQRP\DGGHGPLOOLRQ PLOOLRQ QHZMREVRYHUWKH 


 SHULRG7KLVLVDVL]DEOHQXPEHUDOWKRXJKLWVWLOOIDOOVVKRUWRIWKHPLOOLRQ PLOOLRQ QHZ
HQWUDQWVLQWRWKHODERUIRUFH$VVHHQLQ)LJXUHQHZMREVIRUIHPDOHVNHSWSDFHZLWKWKHLQFUHDVHLQ
IHPDOHHQWUDQWVLQWKHODERUIRUFHGXULQJWKHSHULRGZKHUHDVKDOIDPLOOLRQQHZPDOHHQWUDQWV
LQWRWKHODERUIRUFHZHUHQRWDFFRPPRGDWHG$IXUWKHUEUHDNGRZQUHYHDOVWKDWPLOOLRQQHZMREVZHUH
FUHDWHGLQXUEDQDUHDVZKHUHWKHODERUIRUFHLQFUHDVHGE\PLOOLRQZKLOHPLOOLRQQHZMREVZHUH
FUHDWHGLQWKHUXUDODUHDVZKHUHWKHODERUIRUFHLQFUHDVHGE\PLOOLRQ


%DQJODGHVK6WUDWHJ\IRU6XVWDLQHG*URZWK

)LJXUH-RE&UHDWLRQ9V1HZ/DERU)RUFH(QWUDQWV


P L O O L RQ V  R I  SHR SO H


1HZ I HP DOH HQW UDQW V

1HZ I HP DOH HQW UDQW V


1HZ P DOH HQW UDQW V

1HZ P DOH HQW UDQW V




7 RW DO QHZ HQW UDQW V

7 RW DO QHZ HQW UDQW V


1H Z P DO H  M R EV

1H Z P D O H  M R E V
7 R W D O  Q H Z M R E V

7 R W D O  Q H Z M R E V
1HZ  P DO H  M R EV

1H Z  P D O H  M R E V



 

6RXUFH%DQJODGHVK/DERU)RUFH6XUYH\VDQG:RUOG%DQN6WDIIFDOFXODWLRQV

 8QHPSOR\PHQWUDWHVLQ%DQJODGHVKDVLQWKHPDMRULW\RIWKH/,&VKDYHEHHQFRQVLVWHQWO\ORZ
6WDQGDUGGHILQLWLRQVRIXQHPSOR\PHQWFRQVLGHUDQ\SHUVRQRIDJH\HDUVRUDERYHDVXQHPSOR\HGLIKH
RUVKHGLGQRWZRUNDWDOOGXULQJWKHSUHFHGLQJZHHNRIWKHVXUYH\DQGZDVDFWLYHO\ORRNLQJIRUZRUN$V
SHUWKLVGHILQLWLRQPLOOLRQSHUVRQVRUSHUFHQWRIWKHODERUIRUFHZHUHXQHPSOR\HGLQ 7DEOH
 7KHXQHPSOR\PHQWUDWHLQFUHDVHVZLWKWKHHGXFDWLRQOHYHOVRIWKHODERUIRUFHUHIOHFWLQJWKHIDFWWKDW
WKH PRUH HGXFDWHG ZRUNHUV KDYH KLJKHU UHVHUYDWLRQ ZDJHV DQG DUH OHVV ZLOOLQJ WR FRPSURPLVH RQ WKH
TXDOLW\ RI WKH MRE WKH\ DFFHSW  $OVR WKRVH ZKR JR IRU KLJKHU VWXGLHV RIWHQ FRPH IURP PRUH ZHOORII
EDFNJURXQGVDQGFDQDIIRUGWRKROGRIIZRUNLQJORQJHU$WSHUFHQWWKHXQHPSOR\PHQWUDWHZDVWKH
KLJKHVWDPRQJWKHDJHJURXS

7DEOH8QHPSOR\PHQWUDWHDPRQJODERUIRUFHE\OHYHORIHGXFDWLRQDQGVH[
%DQJODGHVK 8UEDQ 5XUDO
%RWK 0DOH )HPDOH %RWK 0DOH )HPDOH %RWK 0DOH )HPDOH
VH[HV VH[HV VH[HV
3HUFHQW
7RWDO         
1RHGXFDWLRQ         
&ODVV,9         
&ODVV9,9,,,         
&ODVV,;;         
66&+6&          
HTXLYDOHQW
'HJUHH          
DERYH
2WKHUV         
6RXUFH%DQJODGHVK/DERU)RUFH6XUYH\V YDULRXV\HDUV 

 7KHRSHQXQHPSOR\PHQWHVWLPDWHVEDVHGRQWKHVWDQGDUGGHILQLWLRQRIXQHPSOR\PHQWEHVLGHV
EHLQJ H[FHSWLRQDOO\ ORZ GR QRW FKDQJH PXFK RYHU WLPH DQG DV VXFK DUH QRW YHU\ LQIRUPDWLYH  %\
IRFXVLQJRQRQO\WKRVHZKRGLGQRWZRUNDWDOOWKHXQHPSOR\PHQWLQGLFDWRUPLVVHVWKHLQHIILFLHQFLHVLQ
WKH ODERU PDUNHW WKDW DIIHFW WKH PDMRULW\ RI WKH ODERU IRUFH ZKR DUH ORRNLQJ IRU PRUH VXEVWDQWLDO ZRUN
KRXUV)RUWKLVUHDVRQWKHXQGHUHPSOR\PHQWUDWHLVFRQVLGHUHGDPRUHPHDQLQJIXOLQGLFDWRURIWKHODERU
PDUNHWFRQGLWLRQ


&KDSWHU7KH/DERU0DUNHW7UHQGV&KDUDFWHULVWLFVDQG&KDOOHQJHV

 8QIRUWXQDWHO\GDWDTXDOLW\DQGGHILQLWLRQDOSUREOHPVSUHFOXGHDPHDQLQJIXODVVHVVPHQWRIWKH
XQGHUHPSOR\PHQWWUHQGVLQ%DQJODGHVK7KH/)6FRQVLGHUVDVXQGHUHPSOR\HGDQ\RQHZKRLVSDUWRI
WKHODERUIRUFHEXWGLGQRWZRUNIRUDWOHDVWKRXUVDZHHNUHJDUGOHVVRIZKHWKHURUQRWWKHSHUVRQZDV
ZLOOLQJWRZRUNIRUKRXUVRUPRUH)XUWKHUPRUHFRPSDUDELOLW\EHWZHHQWKHDQGWKHVXUYH\V
LVUHQGHUHGGLIILFXOWE\WKHIDFWWKDWZKLOHWKHIRUPHUZDVFRQGXFWHGRQDURWDWLQJEDVLVFRYHULQJWKHHQWLUH
\HDU WKH ODWWHU ZDV FRQGXFWHG RQO\ GXULQJ WKH PRQWKV RI 2FWREHU DQG 1RYHPEHU ± D VODFN SHULRG IRU
DJULFXOWXUHZKLFKZRXOGUHVXOWLQRYHUHVWLPDWLRQRIXQGHUHPSOR\PHQW7KHUHIRUHHYHQWKRXJKWKH
/)6UHSRUWVDQLQFUHDVHLQXQGHUHPSOR\PHQWRYHUWKHSHULRGIURPSHUFHQWLQWR
SHUFHQWLQLWLVQRWDWDOOFOHDUZKHWKHUWKLVLVUHIOHFWVDFWXDOLQFUHDVHUDWKHUWKHVHDVRQDOLW\LQGDWD
FROOHFWLRQDQGRUWKHIDFWWKDWIHPDOHZRUNHUV±ZKRDUHLQFUHDVLQJWKHLUVKDUHLQWKHODERUIRUFH±RIWHQ
WHQGQRWWRORRNIRUIXOOWLPHZRUNWREDODQFHFRPSHWLQJZRUNSUHVVXUHVDWKRPH

,,, (PSOR\HG/DERU)RUFH&KDUDFWHULVWLFV

6HFWRUFRPSRVLWLRQRIWKHHPSOR\HGODERUIRUFH

 7KHDJULFXOWXUHVHFWRUKDVWKHKLJKHVWVKDUHRIWKHHPSOR\HGODERUIRUFHDVLQRWKHUPRVWRWKHU
ORZLQFRPH HFRQRPLHV  ,Q  GHVSLWH DFFRXQWLQJ IRU MXVW  SHUFHQW RI *'3 DJULFXOWXUH VHFWRU
DFFRXQWHG IRU  SHUFHQW RI WKH ODERU IRUFH XS IURP  SHUFHQW LQ  )LJXUH    7KH LQFUHDVH LQ
DJULFXOWXUH¶VVKDUHRYHUDVVXJJHVWHGE\WKH/)6UHVXOWVLVFRXQWHULQWXLWLYHWKRXJKDVLWFDPH
DWDWLPHZKHQDJULFXOWXUH¶VVKDUHLQ*'3IHOOIURPSHUFHQWWRSHUFHQW,WLVDOVRLQVKDUSFRQWUDVW
ZLWKUHFHQWDQDO\WLFDO ZRUN EDVHGRQD VHSDUDWHVXUYH\ RI UXUDO SRSXODWLRQ  WKDW VKRZV D ULVLQJ UROHRI
QRQIDUP DFWLYLWLHV LQ UXUDO HPSOR\PHQW  2Q EDODQFH WKH HYLGHQFH LV PRUH FRPSHOOLQJ WKDW WKH
HPSOR\PHQW VKDUH RI DJULFXOWXUH KDV EHHQ GHFOLQLQJ RYHU WLPH DV ZRXOG EH H[SHFWHG IURP WKH VHFWRU¶V
GLPLQLVKLQJUROHLQWKHRYHUDOOHFRQRP\

)LJXUH'LVWULEXWLRQRIHPSOR\PHQWE\EURDGVHFWRU

6HUYLFHV
 $JULFXOWXUH


&RQVWUXFWLRQ
 ,QGXVWU\


6RXUFH%DQJODGHVK/DERU)RUFH6XUYH\VDQG:RUOGEDQN6WDIIFDOFXODWLRQV

 *HQGHU GHFRPSRVLWLRQ RI ODERU DFURVV VHFWRUV SURYLGHV DGGLWLRQDO LQVLJKW LQWR WKH VHFWRUDO
PRELOLW\RIODERU$OPRVWSHUFHQWRIWKHPDOHZRUNHUVDUHHLWKHULQDJULFXOWXUH SHUFHQW RUVHUYLFHV
SHUFHQW WKHVKDUHRIPDOHZRUNHUVLQLQGXVWU\ PDQXIDFWXULQJDQGPLQLQJ DQGFRQVWUXFWLRQZKLFK
FRPELQHIRUDTXDUWHURIWKH*'3LVWKXVRQO\DERXWRQHWHQWK7KHLUVKDUHLQDJULFXOWXUHGHFOLQHGRYHU
WKHSHULRG )LJXUH ZKLOHWKHVKDUHRIWKHIHPDOHZRUNHUVLQFUHDVHGVXEVWDQWLDOO\±IURP
 SHUFHQW LQ  WR  SHUFHQW LQ   $JDLQ WKHVH WUHQGV GHULYHG IURP WKH /)6V DUH OLNHO\
RYHUVWDWLQJ WKH LQFUHDVLQJ WUHQGV RI IHPDOH SDUWLFLSDWLRQ LQ DJULFXOWXUH  1RQHWKHOHVV WKHVH WUHQGV PD\
ZHOOEHKLJKOLJKWLQJWKHORZHUPRELOLW\RIIHPDOHODERURXWRIDJULFXOWXUHWKDQRIPDOHODERU7KDWZRXOG


0DKDEXE+RVVDLQ  


%DQJODGHVK6WUDWHJ\IRU6XVWDLQHG*URZWK

VXJJHVWWKDWWKHSRVLWLYHDVSHFWRILQFUHDVLQJIHPDOHODERUIRUFHSDUWLFLSDWLRQLVDWOHDVWSDUWLDOO\EHLQJ
RIIVHWE\WKHIDFWWKDWWKHLUHQWUDQFHLVPRVWO\LQWKHDJULFXOWXUHVHFWRU LQFOXGLQJOLYHVWRFNSURGXFWLRQ 
ZKLFK LV QRW RQO\ WKH OHDVW SURGXFWLYH DQG UHPXQHUDWLYH VHFWRU LQ WKH HFRQRP\ EXW LQ ZKLFK ZRPHQ¶V
LQYROYHPHQW XVXDOO\ WDNHV WKH IRUP RI XQSDLG IDPLO\ ZRUN ZKLFK GRHV QRW JLYH WKHP GLUHFW DFFHVV WR
LQFRPHDQGPD\QRWEHDSDUWLFXODUO\HIIHFWLYHPHDQVRIHPSRZHUPHQW

)LJXUH*HQGHU'HFRPSRVLWLRQRI/DERU$FURVV6HFWRUV






)HPDOH 
0DOH

SHUF HQW


)HPDO H 
0DOH 






$JULFXOWXUH ,QGXVWU\ &RQVWUXFWLRQ 6HUYLFHV

6RXUFH%DQJODGHVK/DERU)RUFH6XUYH\V YDULRXV\HDUV 

 $PRUHGHWDLOHGEUHDNGRZQRIWKHODERUIRUFHE\LQGXVWU\ GLJLW%6,&OHYHO LVVKRZQLQ$QQH[


7DEOH$IWHUDJULFXOWXUHZKROHVDOHDQGUHWDLOWUDGHLVWKHQH[WPRVWVLJQLILFDQWFDWHJRU\HPSOR\LQJ
DERXW  SHUFHQW RI WKH ODERU IRUFH ZKLOH PDQXIDFWXULQJ DFFRXQWV IRU RQHWHQWK  7KHUH DUH VRPH
LQWHUHVWLQJJHQGHUDQGXUEDQUXUDOGLIIHUHQFHZLWKLQWKHVHWZRFDWHJRULHV:KROHVDOHDQGUHWDLODFFRXQW
IRUSHUFHQWRIWKHZRUNHUVLQXUEDQDUHDVZKLFK LVWZLFHWKHFDWHJRU\¶VVKDUHLQUXUDODUHDV,WDOVR
DFFRXQWVIRUSHUFHQWRIXUEDQPDOHZRUNHUVDQGSHUFHQWRIUXUDOPDOHZRUNHUVZKLFKLQHDFKFDVH
LV DERXW HLJKW WLPHV WKH FDWHJRU\¶V VKDUH RI IHPDOH HPSOR\PHQW  ,W LV TXLWH WHOOLQJ WKDW GHVSLWH WKH
VLJQLILFDQWGHFOLQHPDQXIDFWXULQJVHFWRU¶VVKDUHRIIHPDOHHPSOR\PHQW±LQERWKXUEDQDQGUXUDODUHDV±
LV PRUH WKDQ WZLFH LWV VKDUH RI PDOH ZRUNHUV  )RU WKH XUEDQ VHFWRU DW OHDVW WKLV LQ ODUJH SDUW UHIOHFWV
RSSRUWXQLWLHVIRUIHPDOHZRUNHUVLQJDUPHQWVPDQXIDFWXULQJ)HPDOHSDUWLFLSDWLRQLQUXUDOPDQXIDFWXULQJ
GHVHUYHVPRUHDQDO\VLV

6WDWXVRIHPSOR\PHQW

 7KH VHOIHPSOR\HG ZRUNHUV FRQVWLWXWH WKH ODUJHVW JURXS E\ IDU RI DQ\ HPSOR\PHQW VWDWXV
FDWHJRU\ 7DEOH DFFRXQWLQJIRUSHUFHQWRIWKHHPSOR\HGODERUIRUFH7KLVLVWUXHQRWRQO\IRU
UXUDODUHDVZKHUHIDPLO\EDVHGVXEVLVWHQFHDJULFXOWXUHKDVEHHQWUDGLWLRQDOO\WKHPDLQHFRQRPLFDFWLYLW\
EXW DOVR IRU XUEDQ DUHDV ZKHUH LW LV OLNHO\ EHLQJ GULYHQ E\ WKH ODUJH VKDUH RI PDOH HPSOR\PHQW LQ
ZKROHVDOH DQG UHWDLO WUDGH  $QRWKHU  SHUFHQW FODVVLI\ DV XQSDLG IDPLO\ ZRUNHUV WKXV IDPLO\ RU RZQ
VRXUFHRIHPSOR\PHQWFRQWULEXWHVDERXWWZRWKLUGRIWKHODERUIRUFH7KHEUHDNGRZQE\JHQGHUIRUWKHVH
WZR FDWHJRULHV LV LQIRUPDWLYH  $OPRVW KDOI WKH PDOH ZRUNHUV FODVVLI\ DV VHOIHPSOR\HG ZKHUHDV RQO\ D
TXDUWHU RI IHPDOH ZRUNHUV GR  2Q WKH RWKHU KDQG DOPRVW KDOI WKH IHPDOH ZRUNHUV FODVVLI\ DV XQSDLG
IDPLO\ZRUNHUVZKLFKLV XSIURPSHUFHQWLQ $QQH[7DEOH ZKLOHRQO\RQHWHQWKRIPDOH
ZRUNHUVGR$PRQJWKHSHUFHQWZKRFODVVLI\DVKLUHGZRUNHUVHPSOR\HHVDUHPRUHFRPPRQLQXUEDQ


6HOI HPSOR\PHQW DV D SHUFHQWDJH RI QRQDJULFXOWXUDO HPSOR\PHQW GDWD IRU WKH ODWHVW DYDLODEOH \HDU EHWZHHQ
  LQ ,QGLD DQG 3DNLVWDQ ZDV  DQG  SHUFHQW +'&   UHVSHFWLYHO\ FRPSDUHG WR  SHUFHQW LQ
%DQJODGHVK  6KDUH RI SDLG ZRUNHUV UHJXODU DQG FDVXDO  LQ WRWDO HPSOR\PHQW LQ ,QGLD ZHUH  DQG  SHUFHQW
UHVSHFWLYHO\DPRQJPHQDQGZRPHQFRPSDUHGWRSHUFHQWDQGSHUFHQWLQ%DQJODGHVKGDWD +'&
  VKRZV WKDW DJULFXOWXUH FRQWULEXWHG   DQG  SHUFHQW RI HPSOR\PHQW LQ ,QGLD 3DNLVWDQ DQG 6UL /DQND
UHVSHFWLYHO\7KHFRPSDUDEOHILJXUHIRU%DQJODGHVKZDVSHUFHQW


&KDSWHU7KH/DERU0DUNHW7UHQGV&KDUDFWHULVWLFVDQG&KDOOHQJHV

DUHDVDQGGD\ODERUHUVLQUXUDODUHD$VZRXOGEHH[SHFWHGUHJXODUVDODULHGHPSOR\HHMREVDUHPRVWO\LQ
WKH QRQDJULFXOWXUH VHFWRU ZKLOH WKH DJULFXOWXUH VHFWRU PRVWO\ FUHDWHV MREV LQ WKH FDWHJRULHV RI VHOI
HPSOR\HGGD\ODERUHUDQGXQSDLGIDPLO\ZRUNHUV

7DEOH(PSOR\HGSHUVRQE\VWDWXVRIHPSOR\PHQWJHQGHUDQGORFDOLW\ 3HUFHQW

%DQJODGHVK 8UEDQ 5XUDO


6WDWXVRI HPSOR\PHQW
%RWK %RWK %RWK
0DOH )HPDOH 0DOH )HPDOH 0DOH )HPDOH
6H[HV 6H[HV 6H[HV
7RWDO         
(PSOR\HH         
(PSOR\HU         
6HOIHPSOR\HG         
'D\ODERUHUV         
8QSDLGIDPLO\ZRUNHU         
'RPHVWLFZRUNHU         
$SSUHQWLFH         
2WKHUV         
6RXUFH%DQJODGHVK/DERU)RUFH6XUYH\

 7KHLQFRPHDQGSRYHUW\VLWXDWLRQRIVHOIHPSOR\HGZRUNHUVLQUXUDODUHDVPD\KDYHZRUVHQHG
GXULQJ   ,I ZH FRQVLGHU PRQWKO\ LQFRPH RI WDND  URXJKO\  86 D GD\  FXWRII IRU
SRYHUW\DERXW KDOI RI WKH VHOIHPSOR\HG IHOOEHORZWKLVOHYHO LQ $QQH[ 7DEOH  XSIURP
SHUFHQWLQ$ERXWSHUFHQWRIWKHXUEDQVHOIHPSOR\HGDQGSHUFHQWRIWKHUXUDOVHOIHPSOR\HG
IHOOEHORZWKHFXWRIISRLQWLQFRPSDUHGZLWKSHUFHQWDQGSHUFHQWLQ7KHZRUVHQLQJ
FRQGLWLRQ RI WKH UXUDO VHOIHPSOR\HG ZRXOG EH HYHQ PRUH SURQRXQFHG LI LQIODWLRQ GXULQJ WKLV SHULRG LV
WDNHQLQWRDFFRXQW,WLVKDUGWREHFRQFOXVLYHDERXWWKLVZRUVHQLQJSDWWHUQKRZHYHUDVWKHVXUYH\GDWD
RQLQFRPHIURPWZR/)6VDUHQRWVWULFWO\FRPSDUDEOH

 7KHQXPEHURIUHJXODUVDODULHGMREVGHFOLQHGRYHU WKHSHULRG 7DEOH DQGWKH


RQO\ UHDVRQ WKLV GLG QRW OHDG WR LQFUHDVLQJ FDVXDOL]DWLRQ RI ODERU ZDV WKDW WKH GD\ ODERUHUV GHFOLQHG
HYHQ IDVWHU  7KH QXPEHU RI UHJXODU HPSOR\HHV IHOO LQ DOO PDMRU VHFWRUV H[FHSW LQGXVWU\ ZKHUH LW VDZ D
VPDOOLQFUHDVH7KHQXPEHURIGD\ODERUHUVRQWKHRWKHUKDQGIHOOPDUNHGO\LQDJULFXOWXUHEXWLQFUHDVHG
LQDOORWKHUVHFWRUV7KHUHGXFWLRQLQVDODULHGMREVDIIHFWHGWKHIHPDOHZRUNHUVPXFKPRUHVHYHUHO\±WKH
QXPEHU RI IHPDOH HPSOR\HHV IHOO E\  SHUFHQW DQG WKH QXPEHU RI IHPDOH GD\ ZRUNHUV E\  SHUFHQW
$QQH[ 7DEOHV  DQG    7KLV ZDV RIIVHW E\ DQ LQFUHDVH RI DERXW  SHUFHQW IRU XQSDLG IDPLO\
ZRUNHUVDQGDERXWSHUFHQWIRUVHOIHPSOR\HG7KHQXPEHURIIHPDOHXQSDLGIDPLO\ZRUNHUVLQIDFW
LQFUHDVHG PRUH WKDQ ILYHIROG EHWZHHQ  ZLWK PRVW RI WKH LQFUHDVH RFFXUULQJ LQ UXUDO DUHDV
7KHLQFUHDVHLQXQSDLGZRUNHUVZDVPRVWO\DFFRXQWHGIRUE\WKHDJULFXOWXUHVHFWRUDQGWRDPXFKOHVVHU
H[WHQWE\WKHLQGXVWULDOVHFWRU7KHXQSDLGIDPLO\ZRUNHUFDWHJRU\MXVWSHUFHQWRIWRWDOHPSOR\PHQW
LQDFFRXQWHGIRUWZRWKLUGRIWKHLQFUHDVHLQHPSOR\PHQWEHWZHHQDQGDOORIWKHLQFUHDVH
LQIHPDOHHPSOR\PHQW


%DQJODGHVK6WUDWHJ\IRU6XVWDLQHG*URZWK

7DEOH1XPEHURI:RUNHUVE\6WDWXVDQG6HFWRU
'DWD WKRXVDQGV 
7RWDO (PSOR\HH (PSOR\HU 6HOI(PSOR\HG 'D\/DERUHU 8QSDLG:RUNHU
7RWDO      
$JULFXOWXUH)RUHVWDQG)LVKHULHV      
,QGXVWU\      
&RQVWUXFWLRQ      
6HUYLFHV      
&KDQJHEHWZHHQDQG WKRXVDQGV 
7RWDO      
$JULFXOWXUH)RUHVWDQG)LVKHULHV      
,QGXVWU\      
&RQVWUXFWLRQ      
6HUYLFHV      
 7KH DJJUHJDWH RI FKDQJHV LQ LQGLYLGXDO FDWHJRULHV LV OHVV WKDQ WKH WRWDO FKDQJH  7KLV LV EHFDXVH RI DGGLWLRQDO
FDWHJRULHVLQWKH/)6WKDWZHUHQRWWKHUHLQWKH/)6
6RXUFH%DQJODGHVK/DERU)RUFH6XUYH\V DQG 

(GXFDWLRQDO$WWDLQPHQWRI/DERU)RUFH

 ,PSURYLQJ WKH TXDOLW\ RI WKH ODERU IRUFH SDUWLFXODUO\ LWV OLWHUDF\ OHYHOV LV FUXFLDO IRU DQ
HFRQRP\ WKDW ZDQWV WR SODFH LWVHOI RQ WKH SDWK WR GHYHORSPHQW DQG PRGHUQLW\  %DVLF OLWHUDF\ DQG
SULPDU\VHFRQGDU\VFKRROLQJDUHHVVHQWLDOWRSURGXFWLYLW\RIDOPRVWDQ\VHFWRUZKLOHJRRGTXDOLW\KLJKHU
HGXFDWLRQSOD\VDQLPSRUWDQWUROHLQWKHHFRQRP\¶VWUDQVIRUPDWLRQDZD\IURPSULPDU\DFWLYLWLHV

 ,Q %DQJODGHVK WKH HGXFDWLRQDO DWWDLQPHQW WUHQGV RI WKH ODERU IRUFH DUH VRPHZKDW
GLVKHDUWHQLQJ+DOIRIWKHHPSOR\HGODERUIRUFHLVIXQFWLRQDOO\LOOLWHUDWHDQGDQRWKHUSHUFHQWGRHVQRW
KDYHHGXFDWLRQEH\RQGFODVVILYH 7DEOH 2QDYHUDJHWKHHPSOR\HGODERUIRUFHKDVRQO\\HDUVRI
VFKRROLQJ\HDUVRQDYHUDJHIRUPDOHZRUNHUVDQG\HDUVIRUIHPDOHZRUNHUV $QQH[7DEOH 
7KHSHUFHQWDJHRIWKHODERUIRUFHZLWKQRHGXFDWLRQLQIDFWKDVLQFUHDVHGRYHUWKHSHULRGFRYHUHGE\WKH
ODVWWKUHH/)6VIURPSHUFHQWLQWRSHUFHQWLQ7KLVLVGULYHQE\WKHGHFOLQHDPRQJPDOH
ZRUNHUVXUEDQDQGUXUDOIHPDOHOLWHUDF\UDWLRVERWKXUEDQDQGUXUDODOEHLWVWLOOFRQVLGHUDEO\ORZHUWKDQ
PDOHKDVEHHQVWDJQDQWDWDERXWSHUFHQW8UEDQOLWHUDF\UDWHV SHUFHQW DUHFRQVLGHUDEO\KLJKHUWKDQ
UXUDO SHUFHQW IRUERWKPDOHDQGIHPDOHZRUNHUV

7DEOH(GXFDWLRQDODWWDLQPHQWRIWKHHFRQRPLFDOO\DFWLYHODERUIRUFHWR
/HYHORIHGXFDWLRQ    )RUERWKVH[HV
FKDQJHVEHWZHHQ 
%RWK 0DOH )HPDOH %RWK 0DOH )HPDOH %RWK 0DOH )HPDOH    
VH[HV VH[HV VH[HV  
7RWDO    
      
1RHGXFDWLRQ    
      
&ODVV,9    
      
&ODVV9,9,,,    
      
&ODVV,;;    
      
66&+6&     
      
HTXLYDOHQW
%DFKHORUVGHJUHH           
RUDERYH
6RXUFH%DQJODGHVK/DERU)RUFH6XUYH\V YDULRXV\HDUV 


&KDSWHU7KH/DERU0DUNHW7UHQGV&KDUDFWHULVWLFVDQG&KDOOHQJHV

 (GXFDWLRQDWWDLQPHQWYDULHVFRQVLGHUDEO\ DFURVV VHFWRUV  7KH DYHUDJH HGXFDWLRQ RIHPSOR\HG


SHUVRQV GLVDJJUHJDWHG E\ VHFWRU VWDWXV RI HPSOR\PHQW JHQGHU DQG ORFDWLRQ DUH SUHVHQWHG LQ $QQH[
7DEOHV   $JULFXOWXUH HVSHFLDOO\ ILVKLQJ  DQG WUDQVSRUW VHFWRUV HPSOR\ ZRUNHUV ZLWK WKH ORZHVW
DYHUDJH HGXFDWLRQ ZKLOH WKH ODERU IRUFH LQ SXEOLF DGPLQLVWUDWLRQ KHDOWK DQG HGXFDWLRQ VHUYLFHV DQG
PRGHUQ VHFWRUV OLNH HOHFWULFLW\SRZHU ILQDQFH DQG UHDO HVWDWH KDYH VXEVWDQWLDOO\ KLJKHU HGXFDWLRQDO
DWWDLQPHQW,WLVGLVFRXUDJLQJWKRXJKWRVHHWKDWDOPRVWKDOIRIWKHZRUNHUVLQWKHPDQXIDFWXULQJVHFWRU
KDYHQRHGXFDWLRQZKLFKOLNHO\DGYHUVHO\LPSDFWVWKHVHFWRU¶VSURGXFWLYLW\

 'DWDIRUWHFKQLFDOWUDLQLQJDQGYRFDWLRQDOHGXFDWLRQDUHVLPLODUO\GLVFRXUDJLQJ2XWRIDODERU
IRUFHRIPLOOLRQWKH/)6HVWLPDWHGWKDWRQO\ PDOHVDQGIHPDOHV RUDOLWWOH
RYHUSHUFHQWRIWKHODERUIRUFHKDGWHFKQLFDOWUDLQLQJRUYRFDWLRQDOHGXFDWLRQDQGHYHQDPRQJWKRVH
WKHUHOHYDQFHRIWKHLUVNLOOVVHHPVTXHVWLRQDEOH

 7KHUHLVVWLOOKRSHDVSDVWWUHQGVLQHGXFDWLRQDODWWDLQPHQWRIZRUNHUVDUHH[SHFWHGWRLPSURYH
:LWK ULVLQJ VFKRRO HQUROPHQW ODERU IRUFH HQWUDQWV ZLWK VFKRRO HGXFDWLRQ WHQGV WR GHFOLQH LQ WKH LQLWLDO
SKDVH7KLVWUHQGLVOLNHO\WREHUHYHUVHGDIWHUWKHLQWHUYDOWDNHQWRFRPSOHWHVFKRROHGXFDWLRQ,QIDFWLQ
%DQJODGHVK GXULQJWKHODVWWKUHH\HDUVWKHUHKDV EHHQ D VPDOOLQFUHDVHLQ WKH SHUFHQWDJH RI ODERUIRUFH
ZLWKFODVV,;DQGDERYHHGXFDWLRQ,WZRXOGEHUHDVRQDEOHWRH[SHFWWKDWZLWKLQWKHQH[WIHZ\HDUVWKH
SHUFHQWDJHRIVFKRROHGXFDWHGODERUIRUFHZLOOLQFUHDVHEHFDXVHRIWKHUDSLGLQFUHDVHLQVFKRROHQUROPHQW
VLQFHWKHHDUO\QLQHWLHV

 $PRUHLQWUDFWDEOHSUREOHPKDVWRGRZLWKWKHSRRUTXDOLW\RIHGXFDWLRQ DQGSUHHPSOR\PHQW


WUDLQLQJ$QLPSRUWDQWVKRUWFRPLQJLVWKHJDSEHWZHHQWKHVNLOOW\SHVGHPDQGHGE\WKHPDUNHWDQGWKRVH
EHLQJVXSSOLHGE\WKHV\VWHPLVSHUFHLYHGWREHVWLOOIDLUO\ZLGH6WXGLHVKDYHIRXQGHGXFDWLRQTXDOLW\WR
KDYHDOVRGHWHULRUDWHG &$03(DQG83/ )XUWKHUPRUHWKHTXDOLW\GLYLGHEHWZHHQXUEDQDQGUXUDO
DUHDVLVZLGHDQGZRUU\LQJO\DSSHDUVWREHZRUVHQLQJ$GGUHVVLQJWKHXUEDQUXUDOJDSZRXOGKDYHWREH
DWWKHKHDUWRIDQ\JRYHUQPHQWSODQWRDGGUHVVWKHVNLOOVVKRUWDJHVLQWKHHFRQRP\

 7KHORZTXDOLW\RIWKHYRFDWLRQDOHGXFDWLRQDQGWUDLQLQJ 9(7 V\VWHPLVUHIOHFWHGLQWKHORZ


FDSDFLW\XWLOL]DWLRQDQGSDVVUDWHVLQERWKYRFDWLRQDOHGXFDWLRQDQGYRFDWLRQDOWUDLQLQJLQVWLWXWLRQVFORVH
WR KDOI WKH VWXGHQW FDSDFLW\ UHPDLQV XQXWLOL]HG DQG SDVV UDWHV LQ VWDQGDUGL]HG WHVWV KDYH DOVR GURSSHG
VLJQLILFDQWO\LQUHFHQW\HDUV7KLVLVIXUWKHUFRUURERUDWHGE\WKHZHDNGHPDQGIRUWKHJUDGXDWHVIURPWKH
9(7LQVWLWXWLRQV$WUDFHUVWXG\VKRZVWKDWOHVVWKDQSHUFHQWRILQGLYLGXDOVZKRJUDGXDWHGLQ
IURPWKHVHZHUHHPSOR\HGRYHUWZR\HDUVDIWHUWKHVXUYH\ZKLOHFORVHWRKDOIWKHJUDGXDWHVWRRNDWOHDVWD
\HDU WR ILQGD MRE  0RUHRYHU WKH ZDJHV IRU 9(7 JUDGXDWHV DSSHDU WR EH ORZHU WKDQ WKRVH UHFHLYHG E\
JUDGXDWHVIURPWKHJHQHUDOHGXFDWLRQV\VWHP

)RUPDODQGLQIRUPDOHPSOR\PHQW

 7KHLQIRUPDOVHFWRULVHVWLPDWHGWRDFFRXQWIRUFORVHWRSHUFHQWRIWKHHPSOR\HGODERUIRUFH
)XUWKHUPRUHWKHVHFWRU¶VVKDUHLQFUHDVHGVOLJKWO\RYHUWKHSHULRGDFFRPSDQLHGE\DGHFOLQHLQ
ERWK SULYDWH DQG SXEOLF VHFWRU IRUPDO HPSOR\PHQW 7DEOH    $OO HFRQRPLF VHFWRUV H[SHULHQFHG DQ
LQFUHDVHLQLQIRUPDOMREV3ULYDWHIRUPDOVHFWRUMRELQFUHDVHGFRQVLGHUDEO\LQLQGXVWULHV PDQXIDFWXULQJ
PLQLQJDQGXWLOLWLHV 7KHVHLQFUHDVHVFDPHDWWKHH[SHQVHRISXEOLFVHFWRUMREVZKLFKGHFOLQHGDFURVV
WKHERDUGDQGLQSULYDWHIRUPDOMREVLQFRQVWUXFWLRQDQGVHUYLFHV


7KH%DQJODGHVK9RFDWLRQDO(GXFDWLRQDQG7UDLQLQJ6\VWHP$Q$VVHVVPHQW:RUOG%DQN


%DQJODGHVK6WUDWHJ\IRU6XVWDLQHG*URZWK

7DEOH)RUPDODQG,QIRUPDO(PSOR\HG/DERU)RUFHE\6HFWRU
 'DWD WKRXVDQGV  &KDQJHEHWZHHQDQG WKRXVDQGV 
,QIRUPDO 3ULYDWH)RUPDO *RYW ,QIRUPDO 3ULYDWH)RUPDO *RYW
7RWDO 6HFWRU 6HFWRU 6HFWRU 7RWDO 6HFWRU 6HFWRU 6HFWRU
7RWDO        
$JULFXOWXUH)RUHVW
)LVKHULHV        
,QGXVWU\        
&RQVWUXFWLRQ        
6HUYLFHV        
6RXUFH%DQJODGHVK/DERU)RUFH6XUYH\V DQG 

 7KHIRUPDOLQIRUPDOEUHDNGRZQRIHPSOR\PHQWQHHGVFDXWLRXVLQWHUSUHWDWLRQ )RURQHGDWDRQ


IRUPDOLQIRUPDOGLVWULEXWLRQDUHGLIILFXOWWRLQWHUSUHWEHFDXVHRIXQGHUO\LQJGHILQLWLRQDOSUREOHPV)RUPDO
MREV DUH FRQVLGHUHG WR EH EHWWHU LQ WHUPV RI MRE VHFXULW\ IULQJH EHQHILWV DQG SHQVLRQ VFKHPHV HWF
1RQHWKHOHVVIRUDQ/,&OLNH%DQJODGHVKLWPD\EHGLIILFXOWWRFOHDUO\GLVWLQJXLVKIRUPDOIURPLQIRUPDO
MREV DQG SLQSRLQW WKHLU LPSOLFDWLRQV IRU ZRUNHU EHQHILWV  ,Q VXFK D VLWXDWLRQ HYHQ WKH IRUPDO VHFWRU
HPSOR\HHV PD\ QRW JHW WKH EHQHILWV WKDW DUH W\SLFDOO\ DVVRFLDWHG ZLWK WKH IRUPDO VHFWRU  0DQ\ IRUPDO
VHFWRUHQWHUSULVHVPD\JLYHMREVWKDWDUHPRUHFORVHO\DVVRFLDWHGZLWKWKHLQIRUPDOVHFWRU%HVLGHVPDQ\
HPSOR\HHVLQWKH50*VHFWRULQ%DQJODGHVKGRQRWJHWDQDSSRLQWPHQWOHWWHUHYHQWKRXJKWKH\PD\ZRUN
IRUHQWHUSULVHVWKDWDUHUHJLVWHUHGDQGIDOOXQGHUWKHIRUPDOVHFWRU2QWKHRWKHUKDQGPDQ\HQWHUSULVHV
PD\QRWREWDLQWKHUHTXLUHGUHJLVWUDWLRQHWFIRUTXDOLI\LQJDVIRUPDOVHFWRUEHFDXVHWKH\GRQRWKDYHDQ
LQFHQWLYHWRGRVR7KHGLVWLQFWLRQIRUWKHODERUPDUNHWLQ%DQJODGHVKLVPDGHHYHQPRUHEOXUU\E\WKH
IDFWWKDWWKH/)6UHSRUWVGRQRWLQFOXGHDGHILQLWLRQRIWKHIRUPDOHPSOR\PHQW0RUHRYHUWKHZRUNHUV
PD\QRWNQRZZKHWKHUWKHLUHPSOR\HUKDVIRUPDOUHJLVWUDWLRQZKHQLQWHUYLHZHGIRUWKHVXUYH\

%DQJODGHVKLPLJUDQWZRUNHUV

 ,QWHUQDWLRQDO PLJUDWLRQ LV D PDMRU VRXUFH RI JURVV QDWLRQDO LQFRPH DQG IRUHLJQ H[FKDQJH LQ
%DQJODGHVK,WLVHVWLPDWHGWKDWEHWZHHQDQGDWRWDORIPLOOLRQZRUNHUVPLJUDWHGDEURDG
DQGDWSUHVHQWDERXWPLOOLRQSHRSOHRI%DQJODGHVKLRULJLQDUHOLYLQJDQGZRUNLQJDEURDG 0R) 7KLV
FRQVWLWXWHVSHUFHQWRIWKHSUHVHQWODERUIRUFHZLWKLQWKHFRXQWU\ $QQH[ 7DEOHV 7KHJURZWK
UDWH RI IUHVK PLJUDWLRQ KDV GHFOLQHG VLQFH WKH HDUO\ V ZLWK QHJDWLYH JURZWK UHFRUGHG IRU  WR
(YHQVRWKRXVDQGZRUNHUV±DERXWRQHKDOISHUFHQWRIWKHGRPHVWLFODERUIRUFH±PLJUDWHGWR
ZRUNDEURDGLQ

 7KH QHW EHQHILWV IURP PLJUDWLRQ DSSHDU WR EH SRVLWLYH IRU %DQJODGHVK  7KH EHQHILWV IURP
PLJUDWLRQDUHFOHDU±LQWKHIRUPRIKLJKHULQFRPHDQGIRUHLJQH[FKDQJH$UHWKHUHDQ\DVVRFLDWHGFRVWV
HVSHFLDOO\ GXH WR EUDLQ GUDLQ DQG VKRUWDJHV RI FULWLFDO VNLOOV"  ,W VHHPV XQOLNHO\ WKDW WKDW LV WKH FDVH LQ
%DQJODGHVKJLYHQLWVH[FHVVVXSSO\RIODERUHVSHFLDOO\XQVNLOOHGODERUDFDWHJRU\XQGHUZKLFKPDMRULW\
RIWKHHPLJUDQWVIDOO7KHVKDUHRIWKHXQVNLOOHGZRUNHUVLQIDFWKDVDOVRULVHQVLQFH $QQH[ 7DEOH
 IURPSHUFHQWRIDOOPLJUDQWVLQWRSHUFHQWLQ

 7KH 0LGGOH (DVW LV WKH IDYRULWH GHVWLQDWLRQ RI HPLJUDQWV ± DFFRXQWLQJ IRURYHU  SHUFHQW RI
HPLJUDWLRQ $QQH[ 7DEOH 6DXGL$UDELDDORQHDFFRXQWVIRUDOPRVWWZRWKLUGRIHPLJUDWLRQEXWRQO\
DERXW  SHUFHQW RI WRWDO UHPLWWDQFHV EHFDXVH RI WKH ORZVNLOO HPLJUDQWV LW DWWUDFWV  7KH 8$( DQG
.XZDLWDUHWKHRWKHUSUHIHUUHGGHVWLQDWLRQVWRJHWKHUWKHVHWKUHHFRXQWULHVDFFRXQWIRUDOPRVWSHUFHQW
RIDOOHPLJUDQWV7KH86$KDVDVPDOOVKDUHRILPPLJUDQWVIURP%DQJODGHVK OHVVWKDQSHUFHQW EXW
DFFRXQWVIRUSHUFHQWRIWKHUHPLWWDQFHVEHFDXVHRIWKHKLJKHUVNLOOOHYHORIHPLJUDQWVWKHUH


7KLVGRHVQRWWDNHLQWRDFFRXQWWKHHVWLPDWHGPLOOLRQVRIXQUHFRUGHGPLJUDQWVPDMRULW\EHOLHYHGWREH,QGLD


&KDSWHU7KH/DERU0DUNHW7UHQGV&KDUDFWHULVWLFVDQG&KDOOHQJHV

,9 (DUQLQJVIURP3DLG(PSOR\PHQW

:DJHWUHQGV

 5HDOZDJHVLQWKHPDQXIDFWXULQJVHFWRUKDYHULVHQTXLWHVKDUSO\ )LJXUH DVSHUWKH%%6


GDWD7KHUHDOZDJHLQGH[IRUWKHVHFWRULQFUHDVHGE\RYHUSHUFHQWEHWZHHQDQG5HDO
ZDJHVLQFUHDVHGLQWKHRWKHUVHFWRUVDVZHOODOEHLWDWDVORZHUSDFHE\SHUFHQWLQWKHDJULFXOWXUHVHFWRU
DQGE\SHUFHQWLQFRQVWUXFWLRQ5HDOZDJHWUHQGVLQDJULFXOWXUHWXUQHGDFRUQHULQDIWHUYLUWXDOO\
VWDJQDWLQJLQWKHV

)LJXUH5HDO:DJH7UHQGVLQ0DMRU6HFWRUV QRUPDOL]HGWR 




0DQXIDFWXULQJVHFWRUZDJHV




 $JULFXOWXUHVHFWRU



&RQVWUXFWLRQZDJHV


































6RXUFH%%6'DWDDQG:RUOG%DQN6WDIIFDOFXODWLRQV

 5HDO ZDJH JURZWK LQ WKH PDQXIDFWXULQJ VHFWRU H[FHHGV WKH VHFWRU¶V ODERU SURGXFWLYLW\ DQG
RXWSXW JURZWK  :KLOH UHDO PDQXIDFWXULQJ ZDJHV LQFUHDVHG E\  SHUFHQW RYHU  UHDO
PDQXIDFWXULQJRXWSXWSHUZRUNHULQFUHDVHGE\QRPRUHWKDQSHUFHQW7KLVGLVSDULW\FRXOGDULVHIURP
DQ\ FRPELQDWLRQ RI D SUHPLXP RQ FHUWDLQ VNLOO VHWV QRW UHDGLO\ DYDLODEOH LQIRUPDWLRQDO SUREOHPV WKDW
SUHYHQW PDWFKLQJ RI MREV ZLWK DYDLODEOH ZRUNHUV ZLWK WKH ULJKW VNLOOV DQG ZDJH VHWWLQJ E\ FROOHFWLYH
EDUJDLQLQJ2WKHUWKDQFROOHFWLYHEDUJDLQLQJZKLFKGRHVQ¶WVHHPWREHSUHYDOHQWLQ%DQJODGHVK 6HFWLRQ
9, WKHILUVWWZRIRUFHVDUHOLNHO\WREHDWSOD\7KHUHLVVRPHHYLGHQFHRIWKHVNLOOVSUHPLXPLQFUHDVLQJ
LQ WKH HQJLQHHULQJ LQGXVWU\  )RU LQVWDQFH WKH UDWLR RI WKH GDLO\ ZDJH UDWH IRU D ³VNLOOHG´ ILWWHU LQ WKH
HQJLQHHULQJVHFWRUWRWKDWRIDQ³XQVNLOOHG´ILWWHULQFUHDVHGIURPLQWRLQ

 7KHGLVSDULW\EHWZHHQUHDOZDJHDQGODERUSURGXFWLYLW\WUHQGVDSSHDUVHYHQPRUHJODULQJIRU
WKHDJULFXOWXUHVHFWRU:KLOHUHDOZDJHVLQWKHVHFWRULQFUHDVHGE\SHUFHQWRYHUWKHSHULRG
UHDORXWSXWLQFUHDVHGE\MXVWSHUFHQW,QRUGHUIRUODERUSURGXFWLYLW\FKDQJHVDORQHWRMXVWLI\WKHUHDO
ZDJHLQFUHDVHVODERUIRUFHLQDJULFXOWXUHZRXOGKDYHKDGWRIDOOE\SHUFHQWRYHUWKHILYH\HDUSHULRG
:KLOH ODERU KDV EHHQ IORZLQJ RXW RIDJULFXOWXUH WKH SDFH LV OLNHO\ WR KDYHEHHQ VORZHU WKDQ WKDW  ,WLV
SRVVLEOH WKDW SDUW RI WKH ZDJH LQFUHDVH LQ DJULFXOWXUH ZDV VLPSO\ FDWFKLQJ XS ZLWK WKH SURGXFWLYLW\


$QDWLRQZLGHSULFHLQGH[IRUWKHLQGXVWULDOVHFWRUKDVEHHQXVHGWRFRQYHUWWKHQRPLQDOLQGLFHVLQWRUHDOLQGLFHV
IRUJHQHUDOPDQXIDFWXULQJDQGFRQVWUXFWLRQ7RGHIODWHQRPLQDODJULFXOWXUHZDJHVSULFHGHIODWRUVIRUDJULFXOWXUH
IURPWKHQDWLRQDODFFRXQWVDUHXVHG

7KH/)6GDWDRQWKHRWKHUKDQGVKRZDJULFXOWXUHVHFWRUZDJHVWRKDYHGHFOLQHGGXULQJLQODUJHSDUW
EHFDXVHWKHVXUYH\ZDVFRQGXFWHGGXULQJWKHOHDQDJULFXOWXUHVHDVRQRI2FWREHU1RYHPEHUZKLOHWKHHDUOLHU
VXUYH\ZDVVSUHDGRYHUWKH\HDU

7KLVLVDVVXPLQJWKDWWKHDQQXDOODERUIRUFHJURZWKLQPDQXIDFWXULQJZDVSHUFHQWDERXWWKHVDPHDVWKHRYHUDOO
ODERUIRUFHJURZWK7KHLQFUHDVHLQRXWSXWSHUZRUNHULQPDQXIDFWXULQJRYHUWKHSHULRGZRXOGEH
DFFRUGLQJO\ORZHUWKDQSHUFHQWLIWKHODERUIRUFHJURZWKLQWKHVHFWRUZDVKLJKHUWKDQSHUFHQW


%DQJODGHVK6WUDWHJ\IRU6XVWDLQHG*URZWK

LPSURYHPHQWVVHHQLQWKHVZKLFKZHUHWKHQDFFRPSDQLHGE\UHDOZDJHVWDJQDWLRQ7KHDGMXVWPHQW
ZRXOGKDYHRFFXUUHGRYHUWKHSHULRGEHFDXVHRIWKHVLJQLILFDQWWLJKWHQLQJRIWKHODERUPDUNHWLQ
PDQXIDFWXULQJZKLFKWULFNOHGWRRWKHUVHFWRUVLQFOXGLQJDJULFXOWXUH7ZRRWKHULPSRUWDQWIDFWRUVOLNHO\
DOVRFRQWULEXWHG2QHFHUWDLQKLJKZDJHVHJPHQWVRIDJULFXOWXUH±HJFRPPHUFLDOSRXOWU\KLJKYDOXH
FURSV HWF ± GHHSHQHG RYHU WKH ODWWHU SHULRG DV VKRZQ LQ &KDSWHU   6HFRQG WKH IRUPV RI ODERU
HPSOR\PHQWRUIHDWXUHVRIFRQWUDFWDUHFKDQJLQJ3LHFHUDWHDQGFRQWUDFWMREVDUHEHJLQQLQJWRVXEVWLWXWH
WLPHUDWHRUGDLO\HPSOR\PHQW3LHFHUDWHMREVDUHJLYHQIRUVSHFLILFZRUNDQGXVXDOO\DJURXSOHDGHULV
LQYROYHGLQWKHQHJRWLDWLRQ7KHHPSOR\HUGRHVQRWVXSHUYLVHWKHODERUHUV7KLVIRUPUHGXFHVVXSHUYLVLRQ
FRVWDQGUDLVHVWKHLQWHQVLW\RIZRUN7KXVSURGXFWLYLW\DQGZDJHUDWHVWHQGWREHQHILW

5XUDOXUEDQZDJHGLIIHUHQWLDO

 7KH/)6GDWDVKRZVLJQLILFDQWUXUDOXUEDQZDJHGLVSDULW\LQWKHZHLJKWHGDYHUDJHUXUDO
ZDJHUDWHZDVRQO\SHUFHQWRIXUEDQZDJHUDWH $QQH[7DEOH WKHGLYHUJHQFHZDVSHUFHQWIRU
PDOHV DQG  SHUFHQW IRU IHPDOHV  7KH GLVSDULW\ EHWZHHQ UXUDO DQG XUEDQ ZDJHV VWDQGV HYHQ DIWHU
DFFRXQWLQJ IRU WKH FRVW RI OLYLQJ GLIIHUHQFHV FRVW RI OLYLQJ LQ XUEDQ DUHDV LV HVWLPDWHG WR EH DERXW 
SHUFHQW KLJKHU WKDQ LQ UXUDO DUHDV  :DJH GLVSDULWLHVLQ DJULFXOWXUH DQG VHUYLFHV VHHP WR EH GULYLQJ WKLV
)LJXUH 8UEDQZDJHVIRUWKHDJULFXOWXUHVHFWRUZHUHDERXWSHUFHQWKLJKHUZKLOHWKHZDJHJDSLQ
VHUYLFHV YDULHG EHWZHHQ  SHUFHQW WUDGH  WR  SHUFHQW ILQDQFH   ,Q WKH PDQXIDFWXULQJ VHFWRU XUEDQ
ZDJHVDUHDERXWSHUFHQWKLJKHUWKDQUXUDOZDJHVZKLFKPDLQO\UHIOHFWVWKHGLIIHUHQFHLQFRVWRIOLYLQJ

)LJXUH5DWLRRI8UEDQ:DJH5DWHWR5XUDO:DJH5DWHIRU0DMRU(FRQRPLF6HFWRUV 3HUFHQW 




 




& R P P X Q LF D W LR Q

& R P P X Q LW \  D Q G
0 LQ LQ J

0 D Q X I D F W X U LQ J
$ J U L F X OW X U H

& R Q V W U X F W LR Q

7 UDGH

) LQ D Q F H
7 U D Q V S R U WD Q G

3H U VR Q D O

6RXUFH%%6'DWDDQG:RUOG%DQN6WDIIFDOFXODWLRQV

 7KH RYHUDOO UXUDOXUEDQ JDS UHPDLQHG YLUWXDOO\ XQFKDQJHG EHWZHHQ  DQG  ZLWK
RIIVHWWLQJFKDQJHVDFURVVGLIIHUHQWVHFWRUV7KHUXUDOXUEDQZDJHGLYLGHEHFDPHZRUVHLQWKHDJULFXOWXUH
VHFWRU DQG LPSURYHG GUDPDWLFDOO\ LQ PLQLQJ DQG DOVR LQ WKH PDQXIDFWXULQJ DQG FRQVWUXFWLRQ VHFWRUV
EHWZHHQDQG7KHGLVSDULW\GLGQ¶WFKDQJHPXFKLQPRVWVHUYLFHVVXEVHFWRUVH[FHSWSHUVRQQHO
VHUYLFHVZKHUHLWEHFDPHFRQVLGHUDEO\ZRUVH

9 'HWHUPLQDQWVRI(PSOR\PHQWDQG5HDO:DJHV$Q$QDO\WLFDO$SSURDFK

'HWHUPLQDQWVRIHPSOR\PHQWOHYHOVFURVVVHFWLRQDOYDULDWLRQV

 7KLVVHFWLRQVHHNVWRLGHQWLI\DQDO\WLFDOO\WKHIDFWRUVWKDWDIIHFWZHHNO\KRXUVRIHPSOR\PHQWLQ
WKHPDMRUVHFWRUV.H\UHVXOWVIURPWKHUHJUHVVLRQUHSRUWHGLQ$QQH[ 7DEOHDUH


&KDSWHU7KH/DERU0DUNHW7UHQGV&KDUDFWHULVWLFVDQG&KDOOHQJHV

x 7KH VL]H RI ODQGRZQHUVKLS WHQGV WR LQFUHDVH HPSOR\PHQW OHYHOV  +HUH WZR RIIVHWWLQJ HIIHFWV
ZRXOG EH DW SOD\  %LJJHU VL]H RI ODQGRZQHUVKLS FDQ SRVLWLYHO\ DIIHFW SURGXFWLYLW\ DQG KHQFH
ERRVWHPSOR\PHQWIURPWKHGHPDQGVLGH2QWKHRWKHUKDQGLWFDQQHJDWLYHO\DIIHFWHPSOR\PHQW
IURP WKH VXSSO\ VLGH E\ UHGXFLQJ LQFHQWLYHV WR ZRUN  2Q EDODQFH LW DSSHDUV WKDW WKH SRVLWLYH
GHPDQGVLGHLPSDFWGRPLQDWHV
x :RUNHUV WUDLQLQJ KDV D SRVLWLYH DQG VLJQLILFDQW HIIHFW RQ WKH KRXUV RI HPSOR\PHQW OLNHO\
UHIOHFWLQJDQLQFUHDVHGGHPDQGIRUWKHLUKLJKHUVNLOOOHYHOV
x :RUNHU¶V HGXFDWLRQ ORZHUV WKH KRXUV RI HPSOR\PHQW  7KLV LV FRQVLVWHQW ZLWK 7DEOH  ZKLFK
VKRZV DQ SRVLWLYH UHODWLRQVKLS EHWZHHQ XQHPSOR\PHQW DQG HGXFDWLRQ  7KLV OLNHO\ UHIOHFWV WKH
KLJKHUUHVHUYDWLRQZDJHVRIWKHPRUHHGXFDWHGDQGWKHVXEVWDQWLDOWKHJDSWKDWVWXGLHVKDYHIRXQG
EHWZHHQWKHVNLOOVEHLQJGHPDQGHGE\WKHPDUNHWDQGWKRVHEHLQJVXSSOLHGE\WKHV\VWHP
x 8UEDQDUHDVSURYLGHPRUHKRXUVRIHPSOR\PHQWHYHQDIWHUFRQWUROOLQJIRUZRUNHUFKDUDFWHULVWLFV
DQG VHFWRUV RI HPSOR\PHQW  7KLV OLNHO\ UHIOHFWV ERWK GHPDQG DQG VXSSO\ VLGH IDFWRUV  2Q WKH
VXSSO\VLGHXUEDQZRUNHUVQHHGWRSXWLQORQJHUKRXUVWRFRSHZLWKWKHKLJKHUFRVWRIOLYLQJDQG
IRUWKHODUJHQXPEHURIPLJUDQWVWREHDEOHWRVHQGUHPLWWDQFHPRQH\EDFNKRPHWRUXUDODUHDV
2QWKH GHPDQG VLGH SURGXFWLYLW\ LQXUEDQ DUHDV LV KLJKHU EHFDXVH RI DJJORPHUDWLRQ HFRQRPLHV
DQGRWKHUEHQHILWVPHQWLRQHGLQ&KDSWHU
x $PRQJWKHYDULRXVVWDWXVHVRIHPSOR\PHQWKLUHGHPSOR\PHQWLVDVVRFLDWHGZLWKPRUHKRXUVRI
HPSOR\PHQW WKDQ VHOIHPSOR\PHQW ± PRUH VR IRU WKH µVDODULHG HPSOR\HHV¶ WKDQ ZDJH ODERUHUV
ZKRDUHRIWHQKXUWE\VHDVRQDOLW\RIWKHLUZRUN8QSDLGIDPLO\ZRUNHUVDQGHPSOR\HUVWHQGWR
SXWLQIHZHUKRXUVWKDQWKHVHOIHPSOR\HG
x 7KHPDQXIDFWXULQJDQGFRQVWUXFWLRQVHFWRUVSURYLGHPRUHKRXUVRIHPSOR\PHQWWKDQDJULFXOWXUH
7KHWUDGHDQGWUDQVSRUWDQGFRPPXQLFDWLRQVXEVHFWRUVSURYLGHPRUHKRXUVRIHPSOR\PHQWWKDW
DJULFXOWXUHEXWWKHUHVWRIWKHVHUYLFHVVHFWRUSURYLGHVIHZHUKRXUV
x $VZRXOGEHH[SHFWHGWKHUHODWLRQVKLSEHWZHHQKRXUVRIHPSOR\PHQWDQGDJHRIWKHZRUNHUKDV
DQLQYHUVH86KDSH+RXUVRIHPSOR\PHQWLQFUHDVHZLWKDJHXSWRDFHUWDLQDJHDQGGHFOLQHDIWHU
WKDW7KLVLVDOVRFRQVLVWHQWZLWK)LJXUHEWKDWVKRZVDVLPLODUUHODWLRQVKLSZLWK/)35DQG
DJHIRUPDOHZRUNHUV
x 2WKHUZRUNHUDQGKRXVHKROGFKDUDFWHULVWLFVDOVRDIIHFWKRXUVRIHPSOR\PHQW0DOHVDQGKHDGVRI
WKH IDPLO\ ZRUNHU ORQJHUKRXUV  +DYLQJ PRUH GHSHQGHQWV LQ WKH KRXVHKROGV DOVR LQFUHDVHG WKH
QXPEHURIKRXUVRIHPSOR\PHQW

 7KH GHWHUPLQDQWV RI KRXUV RI HPSOR\PHQW DUH TXLWH VLPLODU IRU WKH VHOIHPSOR\HG DQG IRU SDLG
ZRUNHUV $QQH[ 7DEOHV  DQG    7KH FRHIILFLHQWV RQ ZRUNHUV¶ HGXFDWLRQ DQG WUDLQLQJ DUH QRW
VLJQLILFDQWIRUWKHVHOIHPSOR\HGZKLOHODQGRZQHUVKLSLVQRWVLJQLILFDQWIRUHLWKHUFDWHJRU\

'HWHUPLQDQWVRIZDJHUDWHV

 6HFWLRQ ,9 VKRZHG UXUDOXUEDQ DQG VHFWRUDO GLIIHUHQFHV LQ ZDJH UDWHV  ,W OHIW RXW WKH PLFUR
FKDUDFWHULVWLF VXFK DV KXPDQ FDSLWDO GLIIHUHQFHV DQG KRXVHKROG FKDUDFWHULVWLFV WKDW FRXOG IXUWKHU KHOS
H[SODLQZDJHGLIIHUHQFHVDPRQJZRUNHUV7KLVVHFWLRQMRLQWO\DVVHVVHVWKHUROHRIDOOWKHVHIDFWRUVWKDW
FDQ DIIHFW ZDJH HDUQLQJV IURP SDLG HPSOR\PHQW  5HJUHVVLRQ UHVXOWV XVLQJ  /)6 GDWD DUH
SUHVHQWHGLQ$QQH[ 7DEOHDQGVKRZWKDW
x 7KHSXEOLFVHFWRUSD\VSHUFHQWKLJKHUZDJHVRQDYHUDJHFRPSDUHGWRWKHSULYDWHVHFWRUDIWHU
FRQWUROOLQJIRUDOORWKHUIDFWRUVLQFOXGLQJVNLOOVDQGORFDWLRQ7KHSUHPLXPIRUSXEOLFVHFWRULV


%DQJODGHVK6WUDWHJ\IRU6XVWDLQHG*URZWK

ZHOOUHFRJQL]HGLQ%DQJODGHVKZKLFKUHVXOWVLQUDWLRQLQJRIWKHVHMREVWRDIHZIRUWXQDWHRQHV
DQGDOVRGLVWRUWVZDJHVLJQDOVLQWKHUHVWRIWKHHFRQRP\
x 8UEDQZDJHVDUHDERXWSHUFHQWKLJKHU7KLVFDSWXUHVWKHXUEDQUXUDOGLIIHUHQFHVLQWKHFRVWRI
OLYLQJDVZHOODVKLJKHUSURGXFWLYLW\LQXUEDQDUHDV
x +XPDQFDSLWDO±LHZRUNHUV¶WUDLQLQJDQG\HDUVRIVFKRROLQJ±WHQGWRLPSURYHZDJHV7KLVLV
RQO\WREHH[SHFWHGLQDQHFRQRP\LQZKLFKVNLOOOHYHOVDUHVWLOOYLVLEO\TXLWHORZ
x 0DOH ZDJHV DUH DERXW  SHU FHQW KLJKHU WKDQ IHPDOH ZDJH UDWH HYHQ DIWHU FRQWUROOLQJ IRU
HGXFDWLRQ DQG RWKHU ZRUNHU ORFDWLRQ DQG HPSOR\PHQW FKDUDFWHULVWLFV  *HQGHU ELDV LQ
UHPXQHUDWLRQLVQRWXQLTXHWR%DQJODGHVKHYHQGHYHORSHGFRXQWULHVUHSRUWHYLGHQFHRILW/LNH
WKH UHVW RI WKH ZRUOG LW LV DQ LPSRUWDQW RQJRLQJ FKDOOHQJH IRU %DQJODGHVK  :DJH GLVSDULWLHV
SHUSHWXDWHHFRQRPLFLQHIILFLHQF\±QRWWRPHQWLRQWKHVRFLDOLQHTXLW\WKH\SHUSHWXDWH
x 6DODULHV RI UHJXODU HPSOR\HHV DUH DERXW  SHUFHQW KLJKHU WKDQ LUUHJXODU HPSOR\HHV DQG GD\
ODERUHUV7KLVFRQILUPVWKDWWKHZRUNHUVLQWKHIRUPHUFDWHJRU\DUHUHODWLYHO\PRUHHPSRZHUHGWR
EDUJDLQ WKHLU SRVLWLRQ  7KH KLJKHU UHPXQHUDWLRQ DOVR FRPHV LQ DGGLWLRQ WR WKH EHWWHU ZRUNLQJ
FRQGLWLRQVLQFOXGLQJVXEVWDQWLDOO\KLJKHUMREVHFXULW\
x $VVHWHQGRZPHQW±SUR[LHGKHUHE\VL]HRIODQGRZQHUVKLS±WHQGVWRLPSURYHZDJHV7KLVOLNHO\
KDVWRGRZLWKWKHKLJKHUUHVHUYDWLRQZDJHRIODQGRZQHUV7KRVHZLWKELJJHUVL]HODQGZRXOGEH
ZLOOLQJWRZRUNRXWVLGHRILWZLWKEHWWHUFRPSHQVDWLRQ:K\WKHHPSOR\HUVZRXOGEHZLOOLQJWR
OLQNSD\ZLWKWKHVL]HRIODQGKROGLQJRIWKHZRUNHUHYHU\WKLQJHOVHEHLQJWKHVDPHQHHGVPRUH
DQDO\VLV  3RVVLEO\ WKH HQKDQFHG VRFLDO VWDQGLQJ WKDW FRPHV ZLWK D ODUJHU ODQG HQGRZPHQW
LPSURYHVWKHZRUNHUV¶EDUJDLQLQJSRZHUDVZHOO
x 'LIIHUHQFHV LQ ZDJHV DOVR H[LVW DPRQJ YDULRXV VHFWRUV  5HODWLYH WR WKH DJULFXOWXUH VHFWRU WKH
ZDJHSUHPLXPLVSHUFHQWLQPDQXIDFWXULQJSHUFHQWLQFRQVWUXFWLRQVDQGDQ\ZKHUHIURP
SHUFHQWWRSHUFHQWLQVHUYLFHV
x 7KH UHODWLRQVKLS EHWZHHQ ZRUNHUV DJH DQG ZDJH UDWHV KDV DQ LQYHUVH8 VKDSH  ,QLWLDOO\ ZDJHV
LQFUHDVHZLWKDJHXSWRDFHUWDLQDJHDIWHUZKLFKWKH\GHFOLQHZLWKDJH

9, $Q2YHUYLHZRI/DERU/DZVDQG5HJXODWLRQVLQ%DQJODGHVK

 7KH5LJKWRI$VVRFLDWLRQ%DQJODGHVK
V&RQVWLWXWLRQJXDUDQWHHVIUHHGRPRIDVVRFLDWLRQWKHULJKW
WRMRLQXQLRQVDQGZLWKJRYHUQPHQWDSSURYDOWKHULJKWWRIRUPDXQLRQ:LWKWKHH[FHSWLRQRIZRUNHUV
LQWKHUDLOZD\SRVWDOWHOHJUDSKDQGWHOHSKRQHVHFWRUVFLYLOVHUYDQWVDUHIRUELGGHQWRMRLQXQLRQV7KH
EDQDOVRDSSOLHV WRWKH PLOLWDU\ DQG SROLFH6RPHSXEOLFVHFWRU HPSOR\HH JURXSV VXFK DV WHDFKHUVDQG
QXUVHVDOWKRXJKIRUELGGHQWRMRLQXQLRQVKDYHMRLQHGDVVRFLDWLRQVZKLFKSHUIRUPIXQFWLRQV

 7KH ,QGXVWULDO 5HODWLRQV 2UGLQDQFH ,52   SURYLGHV WKDW DQ\ ZRUNHU RU HPSOR\HU KDV WKH
ULJKW WR IRUP D XQLRQDVVRFLDWLRQ ZLWKRXW SUHYLRXV DXWKRUL]DWLRQ  %XW VXFK D XQLRQDVVRFLDWLRQ FDQQRW
IXQFWLRQDVDWUDGHXQLRQZLWKRXWEHLQJUHJLVWHUHGXQGHUWKHODZZKLFKUHTXLUHVDSHUFHQWSDUWLFLSDWLRQ
LQ WKH XQLRQ EHIRUH LW FDQ EH UHJLVWHUHG DQG D XQLRQ PD\ EH GLVVROYHG LI PHPEHUVKLS IDOOV EHORZ WKLV
OHYHO  7KH ,/2
V &RPPLWWHH RI ([SHUWV RQ WKH $SSOLFDWLRQ RI &RQYHQWLRQV DQG 5HFRPPHQGDWLRQV
&($&5  ILQGV VXFK UHTXLUHPHQWV WR EH H[FHVVLYHO\ UHVWULFWLYH DQG KDV UHTXHVWHG WKDW WKH JRYHUQPHQW
DPHQGWKHVH$GGLWLRQDOO\WKH,QWHUQDWLRQDO&RQIHGHUDWLRQRI)UHH7UDGH8QLRQV ,&)78 KDVH[SUHVVHG


6HHIRUH[DPSOH%DQJODGHVK3XEOLF([SHQGLWXUH5HYLHZ:RUOG%DQN

6RXUFHV86 L 6WDWH'HSDUWPHQW&RXQWU\5HSRUWRQ(FRQRPLF3ROLF\DQG7UDGH3UDFWLFHVLQ%DQJODGHVK
LL )DLU/DERU$VVRFLDWLRQ$QQXDO5HSRUW LLL %RDUGRI,QYHVWPHQW%DQJODGHVK


&KDSWHU7KH/DERU0DUNHW7UHQGV&KDUDFWHULVWLFVDQG&KDOOHQJHV

FRQFHUQV WKDW ZRUNHUV WU\LQJ WR HVWDEOLVK D WUDGH XQLRQ DUH QRW SURWHFWHG E\ ODZ DQG DV D UHVXOW DUH
VXEMHFWWRVHYHUHUHVLVWDQFHIURPHPSOR\HUVDQGJRYHUQPHQWWRSUHYHQWIRUPDWLRQRIWKHXQLRQ

 %DQJODGHVK KDV UDWLILHG VHYHQ RI WKH HLJKW IXQGDPHQWDO ,/2 FRQYHQWLRQV  ,Q  %DQJODGHVK
UDWLILHGERWKIXQGDPHQWDO,/2&RQYHQWLRQVFRQFHUQLQJIUHHGRPRIDVVRFLDWLRQ)UHHGRPRI$VVRFLDWLRQ
DQG 3URWHFWLRQ RI WKH 5LJKW WR 2UJDQL]H &RQYHQWLRQ 1R  DQG 5LJKW WR 2UJDQL]H DQG &ROOHFWLYH
%DUJDLQLQJ &RQYHQWLRQ    +RZHYHU ZKHQ %DQJODGHVK UDWLILHG WKH ,QWHUQDWLRQDO &RYHQDQW RQ
(FRQRPLF 6RFLDO DQG &XOWXUDO 5LJKWV ,&(6&5  LW HQWHUHG D UHVHUYDWLRQ RQ DUWLFOHV  DQG  ZKLFK
JXDUDQWHH WKH ULJKW RI HYHU\RQH WR IRUP WUDGH XQLRQV DQG MRLQ WKH WUDGH XQLRQ RI WKHLU FKRLFH  7KH
UHVHUYDWLRQLQGLFDWHGWKDWWKHUHZRXOGEHVRPHOLPLWDWLRQVSODFHGRQZRUNHUV
IUHHGRPRIDVVRFLDWLRQ

 ,QWKHUHZHUHDERXWUHJLVWHUHGWUDGHXQLRQVPRVWZLWKSROLWLFDODIILOLDWLRQVZLWKOHVV
WKDWPLOOLRQZRUNHUPHPEHUV OHVVWKDQSHUFHQWRIWKHZRUNIRUFH 7KHUHODWLYHO\ORZOHYHORIXQLRQ
PHPEHUVKLS UHIOHFWV WKH LQIRUPDO QDWXUH RI YDVW PDMRULW\ RI HFRQRPLF DFWLYLW\ DQG WKH PHQWLRQHG
UHVWULFWLRQVWKDWDSSO\WRWKHIRUPDOVHFWRU

 7KH5LJKWWR%DUJDLQ&ROOHFWLYHO\&ROOHFWLYHEDUJDLQLQJE\ZRUNHUVLVOHJDOXQGHUWKHFRQGLWLRQ
WKDW WKHLU XQLRQV DUH OHJDOO\ UHJLVWHUHG DV FROOHFWLYH EDUJDLQLQJ DJHQWV  ,Q FDVH RI PXOWLSOH UHJLVWHUHG
XQLRQVLQDQHVWDEOLVKPHQWDFROOHFWLYHEDUJDLQLQJDJHQWLVGHWHUPLQHGE\WKH5HJLVWUDURI7UDGH8QLRQ±
DSRVLWLRQJLYHQWRWKH'LUHFWRURI/DERURIWKHJRYHUQPHQW±WKURXJKDVHFUHWEDOORWIRUDWHUPRIWZR
\HDUV&ROOHFWLYHEDUJDLQLQJRFFXUVRFFDVLRQDOO\LQODUJHSULYDWHHQWHUSULVHVEXWLVJHQHUDOO\QRWVHHQLQ
VPDOOSULYDWHHQWHUSULVHV

 5LJKW WR 6WULNH 6WULNHV DUH FRPPRQ LQ %DQJODGHVK DQG DUH UHFRJQL]HG LQ WKH  ,52 DV D
OHJLWLPDWHDYHQXHIRUDGGUHVVLQJXQUHVROYHGJULHYDQFHV7KH,52SHUPLWVWKHJRYHUQPHQWWREDUVWULNHV
IRUWKUHHPRQWKVLQDQ\VHFWRUGHHPHGHVVHQWLDO7KHVHLQFOXGHXWLOLWLHV HOHFWULFLW\JDVRLODQGZDWHU
HWF  KRVSLWDO DQG DPEXODQFH VHUYLFHV ILUH EULJDGHUDLOZD\V DQG WKH QDWLRQDO DLUOLQH %LPDQ DQG SRUWV
0HFKDQLVPVIRUFRQFLOLDWLRQDUELWUDWLRQDQGODERUFRXUWGLVSXWHUHVROXWLRQZHUHDOVRHVWDEOLVKHGXQGHUWKH
,52

 7KH ,/2 &RPPLWWHH RI ([SHUWV KDV REMHFWHG WR WKH IROORZLQJ SURYLVLRQV RI WKH ,52 RQ WKH
JURXQGVWKDWWKHVHUHVWULFWZRUNHUV
ULJKWWRGHIHQGWKHLUHFRQRPLFLQWHUHVWVWKURXJKVWULNHV
x WKHQHHGIRUWKUHHTXDUWHUVRIWKHPHPEHUVRIDZRUNHUVRUJDQL]DWLRQWRFRQVHQWWRDVWULNH
x WKHJRYHUQPHQW
VSRZHUWRSURKLELWDVWULNHLILWODVWVPRUHWKDQGD\VRUWRSURKLELWDVWULNHDW
DQ\WLPHLILWLVFRQVLGHUHGSUHMXGLFLDOWRWKHQDWLRQDOLQWHUHVWDQG
x SHQDOWLHV ZKLFK LQFOXGH LPSULVRQPHQW  WKDW PD\ EH LPSRVHG LI ZRUNHUV SDUWLFLSDWH LQ DQ
LQGXVWULDODFWLRQWKDWLVGHHPHGE\WKHJRYHUQPHQWWREHXQODZIXO

 3URKLELWLRQ RI )RUFHG /DERU 7KH FRQVWLWXWLRQ SURKLELWV IRUFHG RU FRPSXOVRU\ ODERU  7KH
)DFWRULHV$FWDQGWKH6KRSVDQG(VWDEOLVKPHQWV$FWERWKSDVVHGLQVHWXSLQVSHFWLRQPHFKDQLVPV
WR JXDUG DJDLQVW IRUFHG ODERU EXW UHVRXUFHV IRU HQIRUFHPHQW DUH VFDUFH  1HYHUWKHOHVV WKH SUDFWLFH RI
IRUFHGODERULVEHOLHYHGWREHTXLWHOLPLWHG

 0LQLPXP$JHIRU(PSOR\PHQWRI&KLOGUHQ%DQJODGHVKKDVODZVWKDWSURKLELWODERUE\FKLOGUHQ
7KH)DFWRULHV$FWEDUVFKLOGUHQXQGHUWKHDJHRIIURPZRUNLQJLQIDFWRULHV7KHHQIRUFHPHQWRIWKHVH
UXOHV LV TXLWH LQDGHTXDWH WKRXJK DQG WKH DSSOLFDWLRQ RI WKH UXOHV WR LQIRUPDO VHFWRU DFWLYLWLHV VXFK DV
DJULFXOWXUHDQGGRPHVWLFKHOS±ZKHUHPDMRULW\RIFKLOGODERULVIRXQG±LVQRWFOHDU$VSHUWKH/)6
GDWDRYHUPLOOLRQRUSHUFHQWRIWKHSRSXODWLRQLQWKHDJHJURXSZDVZRUNLQJ

 ,Q-XO\%DQJODGHVKJDUPHQWH[SRUWHUV VLJQHG DQ028WKDW KDV YLUWXDOO\HOLPLQDWHG FKLOG


ODERULQWKHJDUPHQWH[SRUWVHFWRU8QGHUWKH028VFKRROVDQGDVWLSHQGSURJUDPZHUHHVWDEOLVKHGIRU


%DQJODGHVK6WUDWHJ\IRU6XVWDLQHG*URZWK

GLVSODFHG FKLOG ZRUNHUV  %\ 1RYHPEHU  KXQGUHGV RI VFKRROV VHUYLQJ WKRXVDQGV RI IRUPHU FKLOG
ZRUNHUVZHUHLQRSHUDWLRQ$V\VWHPRIILQHVDQGSRVVLEOHVXVSHQVLRQRILPSRUWH[SRUWSULYLOHJHVH[LVWV
DQGDPRQLWRULQJV\VWHPKDVEHHQVHWXSE\WKH,/2

 $FFHSWDEOH &RQGLWLRQV RI :RUN  5HJXODWLRQV UHJDUGLQJ PLQLPXP ZDJHV KRXUV RI ZRUN DQG
RFFXSDWLRQDOVDIHW\DQGKHDOWKDUHQRWVWULFWO\HQIRUFHG7KHOHJDOPLQLPXPZDJHYDULHVGHSHQGLQJRQ
RFFXSDWLRQ DQG LQGXVWU\  ,W LV JHQHUDOO\ QRW HQIRUFHG LQ WKH SULYDWH VHFWRU  7KH JDUPHQW VHFWRU KDV
ZLWQHVVHG SURORQJHG ZRUNHU DJLWDWLRQ RYHU GLVVDWLVIDFWLRQ RYHU PLQLPXP ZDJH UDWHV ZKLFK KDYH QRW
FKDQJHVIRUVHYHUDO\HDUV7KHLPSDVVHFDUULHVRQXQUHVROYHGKLJKOLJKWLQJWKHVLJQLILFDQWHFRQRPLFFRVW
RIQRWKDYLQJLQSODFHDIXQFWLRQLQJPHFKDQLVPWRUHVROYHODERUGLVSXWHVLQWKHIRUPDOSULYDWHVHFWRU,Q
WKHSXEOLFVHFWRUZDJHVDQGIULQJHEHQHILWVRIWKHZRUNHUVDUHGHWHUPLQHGRQWKHUHFRPPHQGDWLRQRIWKH
1DWLRQDO3D\&RPPLVVLRQHVWDEOLVKHGIURPWLPHWRWLPH6RPHWLPHVSULYDWHLQGXVWULHVIROORZWKHSXEOLF
VHFWRUZDJHV VDODU\VWUXFWXUHIRUWKHLUZRUNHUV

 /HDYH KROLGD\VRIWKHZRUNHUV HPSOR\HHVDUHUHJXODWHGE\WKH)DFWRULHV$FWDQGVKRSV


(VWDEOLVKPHQW$FW7KHODZVHWVDVWDQGDUGKRXUZRUNZHHNZLWKRQHPDQGDWHGGD\RII$
KRXUZRUNZHHNLQFOXVLYHRIDPD[LPXP  KRXUV RI RYHUWLPH LV DOORZHG7KH)DFWRULHV $FWRI 
QRPLQDOO\ VHWV RFFXSDWLRQDO KHDOWK DQG VDIHW\ VWDQGDUGV  7KH ODZ LV FRPSUHKHQVLYH EXW DSSHDUV WR EH
ODUJHO\LJQRUHGE\PDQ\HPSOR\HUV

)UHHGRPRI$VVRFLDWLRQLQ([SRUW3URFHVVLQJ=RQHVLQ%DQJODGHVK

 ,QWKH%DQJODGHVK([SRUW3URFHVVLQJ=RQHV$XWKRULW\$FWZDVHQDFWHG,WSURYLGHGIRU
WKHHVWDEOLVKPHQWRIWKH%DQJODGHVK([SRUW3URFHVVLQJ=RQHV$XWKRULW\ %(3=$ ZKLFKLVWKHRIILFLDO
DUPRIWKHJRYHUQPHQWUHVSRQVLEOHIRUWKHFUHDWLRQGHYHORSPHQWRSHUDWLRQPDQDJHPHQWDQGFRQWURORI
H[SRUW SURFHVVLQJ ]RQHV (3=V   8QGHU WKH %(3=$ $FW WKH JRYHUQPHQW PD\ H[HPSW DQ (3= IURP DV
PDQ\DVODZVLQFOXGLQJWKH,QGXVWULDO5HODWLRQV2UGLQDQFH ,52 ,QWKHJRYHUQPHQWGHFODUHG
LQ DFFRUGDQFH ZLWK WKH %(3=$ $FW WKDW WKH ,52 ZDV QRW DSSOLFDEOH LQ WKH (3=V  7KH GHFODUDWLRQ
HIIHFWLYHO\VXVSHQGHGWKHULJKWVRIZRUNHUVLQ(3=VWRIUHHGRPRIDVVRFLDWLRQDQGFROOHFWLYHEDUJDLQLQJ

 0RVWO\XQGHUSUHVVXUHIURPWKH86LQWKH3DUOLDPHQWRI%DQJODGHVKSDVVHGDELOOJUDQWLQJ
OLPLWHG ZRUNHUV
 DVVRFLDWLRQ ULJKWV LQ WKH FRXQWU\
V H[SRUW SURFHVVLQJ ]RQHV (3=V  HIIHFWLYH IURP
1RYHPEHU8QGHUWKH%LOOWUDGHXQLRQVRIDSDUWLFXODU(3=FDQIRUPDIHGHUDWLRQEXWWKHUH
FDQQRW EH PRUH WKDQ RQH IHGHUDWLRQ LQ DQ (3=  7KH IHGHUDWLRQV ZLOO QRW EH DOORZHG WR IRUP D VLQJOH
QDWLRQDOERG\RUMRLQDQ\QDWLRQDOWUDGHXQLRQSROLWLFDOSDUW\RULWVODERUIURQW

9,, &KDOOHQJHV$KHDG

 $UDSLGO\JURZLQJODERUIRUFHSUHVHQWVDFULWLFDOGHYHORSPHQWFKDOOHQJHIRU%DQJODGHVK,WVODERU
IRUFHLVSURMHFWHGWRLQFUHDVHE\WRPLOOLRQRYHUWKHQH[WGHFDGH±PLOOLRQLIWKHIHPDOH/)35
GRHVQRWFKDQJHDQGPLOOLRQLIIHPDOH/)35LQFUHDVHVWRSHUFHQW&UHDWLQJSURGXFWLYHHPSOR\PHQW
RSSRUWXQLWLHVZLOOFOHDUO\EHDQLPSHUDWLYHIRUSRYHUW\UHGXFWLRQDQGHYHQVXVWDLQHGHFRQRPLFJURZWKLQ
%DQJODGHVKDVULJKWO\UHFRJQL]HGE\WKH*RYHUQPHQW¶V3RYHUW\5HGXFWLRQ6WUDWHJ\ 356 /DERUPDUNHW
UHJXODWLRQVLQ%DQJODGHVKGRQRWDSSHDUWKDWHQFXPEHULQJHVSHFLDOO\UHODWLYHWR,QGLDDVLVDOVRERUQHRXW
E\ YDULRXV LQYHVWPHQW FOLPDWH VXUYH\ UHVXOWV ZKLFK VKRZ WKDW KLULQJILULQJ ULJLGLWLHV DUH QRW DPRQJ WKH
PDLQFRQFHUQVRIHPSOR\HUV0RUHHIIHFWLYHHQIRUFHPHQWRIWKHH[LVWLQJODERUPDUNHWSROLFLHVLVQHHGHG
QRQHWKHOHVVHVSHFLDOO\WRSURWHFWZRUNHUULJKWV,QVWUXPHQWDOIRUPHHWLQJWKHJRYHUQPHQW¶VHPSOR\PHQW
JHQHUDWLRQREMHFWLYHZLOOEHVXVWDLQHGSURGXFWLYLW\DQGRXWSXWJURZWKDFURVVDOOPDMRUHFRQRPLFVHFWRUV
DQDJHQGDFRYHUHGLQWKHUHVWRIWKLVUHSRUW GHHSHUDQGPRUHIRFXVHGJRYHUQPHQWDWWHQWLRQWRHQKDQFLQJ
ZRUNHUVNLOOVSDUWLFXODUO\E\VWUHQJWKHQLQJWKHKLJKHUHGXFDWLRQDQG9(7V\VWHPVDQGPDNLQJWKHPPRUH
UHVSRQVLYHPDUNHWQHHGVLPSURYHGXUEDQPDQDJHPHQWWRIDFLOLWDWHUXUDOXUEDQPLJUDWLRQDQGFRQWLQXHG


&KDSWHU7KH/DERU0DUNHW7UHQGV&KDUDFWHULVWLFVDQG&KDOOHQJHV

HPSKDVLV RQ JHQGHU HPSRZHUPHQW WR DOORZ JUHDWHU PRELOLW\ RI IHPDOH ZRUNHUV WR PRUH SURGXFWLYH
HPSOR\PHQWRSSRUWXQLWLHV



Das könnte Ihnen auch gefallen