/
The 20 Most Admired Companies of 2023 The 20 Most Admired Companies of 2023

The 20 Most Admired Companies of 2023 - PDF document

thecioworld
thecioworld . @thecioworld
Follow
78 views
Uploaded On 2023-11-09

The 20 Most Admired Companies of 2023 - PPT Presentation

This edition features a handful of The Most Admired Companies that are leading us into a better future ID: 1030957

#businessmagazinecover #internationalbusinessmagazine #businessonlinemagazine #magazinesforfemaleentrepreneurs #business

Share:

Link:

Embed:

Download Presentation from below link

Download Pdf The PPT/PDF document "The 20 Most Admired Companies of 2023" is the property of its rightful owner. Permission is granted to download and print the materials on this web site for personal, non-commercial use only, and to display it on your personal computer provided you do not modify the materials and that you retain all copyright notices contained in the materials. By downloading content from our website, you accept the terms of this agreement.


Presentation Transcript

 &RYHU6WRU\ z]vP s]]}vŒÇ[Yµšš}^ÀšZŒšZÁ]šZ}r&Œ]voÇ]P]šo}µ‰}v &RQWHQWV $UWLFOHV $UWLFOHV W}ÁŒ}(šZ]o�ŒZ]‰ÇŒ]ÀŒ}(/vv}ÀŸ}vvŒŸÀ]šÇ]vKŒPv]ÌŸ}vdZW}‰o&š}Œ,}Á}u‰v]µoŸÀš,‰‰ÇvvPPt}Œl(}Œ   &^�}P]Ÿ ,o‰]vPµ]v^ÀD]oo]}vÇK‰Ÿu]Ì]vPdZ]Œ�}P]ŸEšÁ}Œl  v/vv}ÀŸÀ,µ}vD]]}vš}o]ÀŒŒŸÀÆoov o]Pv  rZ'KtZ Æu‰o](Ç]vPdZv}o}PÇ�ŒZ]‰  &ŒZÌ]Ì] µ]o]vPŒuŒ]lÇŒ]l  /^‰] /ooµu]vŸvPšZt}ŒoÁ]šZoÀŒ/  D'E�}P]Ÿ dŒµ�}P]Ÿ^}oµŸ}vWŒ}À]ŒšŒ]vPš}'o}oµ]vu]Ÿ}v &[2 s]vZ^šÁv]  ,}Á]dZÇ'šdZŒMYHUZRQGHUZKDWLWWDNHVWREXLOGRQHRIWKHPRVWDGPLUHGFRPSDQLHVLQWKHZRUOG"RXVWULYHWRFUHDWHDFRPSDQ\FXOWXUHWKDWDWWUDFWVWRSWDOHQWDQGIRVWHUVLQQRYDWLRQRXZRUNWRGHOLYHUSUHPLXPSURGXFWVDQGVHUYLFHVWKDWH[FHHGFXVWRPHUH[SHFWDWLRQVRXDLPWRJHQHUDWHVWURQJ¿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¿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¿FDQWFDXVHVDQGJHQXLQHO\LPSDFWWKHOLYHVRILQGLYLGXDOVDQGFRPPXQLWLHVJDUQHULPPHQVHJRRGZLOODQGXQZDYHULQJOR\DOW\8OWLPDWHO\WKHPRVWUHYHUHGFRPSDQLHVDUHFKDUDFWHUL]HGE\DZHOOGH¿QHGDQGFDSWLYDWLQJPLVVLRQURRWHGLQYDOXHVWKDWWUXO\PDWWHU%\SULRULWL]LQJLQWHJULW\LQQRYDWLRQFXVWRPHUVDWLVIDFWLRQGLYHUVLW\DQGVRFLDOUHVSRQVLELOLW\\RXUFRPSDQ\ZLOOVHWLWVHOIDSDUWDQGSDYHWKHZD\IRUDSURPLVLQJIXWXUH6XFFHVVIXOFRPSDQLHVXQGHUVWDQGWKHLPSRUWDQFHRIWKHLUHPSOR\HHV7KH\LQYHVWKHDYLO\LQFUHDWLQJDVWURQJDQGG\QDPLFFRPSDQ\FXOWXUHR\ruHULQJFRPSHWLWLYHFRPSHQVDWLRQDQGEHQH¿WVZKLOHDOVRIRVWHULQJDQHQYLURQPHQWWKDWSURPRWHVHQJDJHPHQWHPSRZHUPHQWDQGSHUVRQDOJURZWK,QOLQHZLWKWKLVRXUODWHVWHGLWLRQRI7KH&,2:RUOGSURXGO\SUHVHQWV7KH0RVW$GPLUHG&RPSDQLHVRI7KLVHGLWLRQKRQRUVRUJDQL]DWLRQVWKDWKDYHGHPRQVWUDWHGH[FHSWLRQDOH[SHUWLVHLQJHQXLW\DQGIRUWLWXGHLQVSHDUKHDGLQJWKHPHWDPRUSKRVLVDQGWULXPSKRIHQWHUSULVHVDFURVVGLYHUVHVHFWRUVDQGDUHZLGHO\DGPLUHGLQWKHPDUNHW+DYHDQDGPLULQJUHDGDKHDG &,2 tÁ]Zš}Œ‰ooo‰‰Œr}µ‰}vÁ]šZ}µŒ]P]šo}µ‰}v‰ož}Œu(}ŒšZvÀ]Œ}vuvš}(šZŒšZX ]lÇz]vP}r(}µvŒvK 7UDQVIRUPRXU%XVLQHVVZLWKWKH&XWWLQJ(GJH2Q'HPDQG'LJLWDO&RXSRQ3ODWIRUPLFWXUHWKLVRX¶UHDWWKHJURFHU\VWRUHDQG\RX¶YH¿QDOO\JDWKHUHGDOOWKHLWHPVRQ\RXUVKRSSLQJOLVW$V\RXPDNH\RXUZD\WRWKHFKHFNRXWODQH\RX¶UHVWRSSHGE\VRPHRQHKDQGLQJRXWSDSHUFRXSRQVRXWDNHRQHWKLQNLQJLWFDQ¶WKXUWWRVDYHDIHZEXFNV%XWKDYH\RXHYHUVWRSSHGWRWKLQNDERXWWKHQHJDWLYHLPSDFWWKRVHOLWWOHVOLSVRISDSHUFDQKDYHRQWKHHQYLURQPHQW"/HW¶VEUHDNLWGRZQ3DSHUFRXSRQVDUHW\SLFDOO\PDGHIURPYLUJLQSDSHUZKLFKPHDQVWUHHVDUHEHLQJFXWGRZQWRPDNHWKHP$FFRUGLQJWRWKH(QYLURQPHQWDO3URWHFWLRQ$JHQF\ (3$ WKHSDSHULQGXVWU\LVWKHIRXUWKODUJHVWFRQWULEXWRUWRJUHHQKRXVHJDVHPLVVLRQVLQWKH8QLWHG6WDWHV7KDW¶VQRWH[DFWO\DVPDOOSUREOHP%XWLW¶VQRWMXVWWKHSURGXFWLRQRISDSHUFRXSRQVWKDWLVFRQFHUQLQJ,W¶VDOVRWKHIDFWWKDWPDQ\FRXSRQVJRXQXVHGRUHQGXSLQWKHWUDVK$VWXG\E\,QPDU,QWHOOLJHQFHIRXQGWKDWLQRQO\RISDSHUFRXSRQVGLVWULEXWHGZHUHUHGHHPHG7KDWPHDQVWKHYDVWPDMRULW\RIWKRVHFRXSRQVZHUHZDVWHGDQGDOOWKHUHVRXUFHVWKDWZHQWLQWRFUHDWLQJWKHPZHUHZDVWHGDVZHOO6RZKDW¶VWKHVROXWLRQ"'LJLWDOFRXSRQVRIFRXUVH:LWKWKHULVHRIVPDUWSKRQHVDQGDSSVLW¶VHDVLHUWKDQHYHUWRDFFHVVDQGUHGHHPGLJLWDOFRXSRQV1RWRQO\GRGLJLWDOFRXSRQVVDYHSDSHUDQGWUHHVEXWWKH\DOVRVDYHWLPHDQGKDVVOH0HHW'LFN\LQJWKHLQQRYDWLYHYLVLRQDU\DQG&R)RXQGHU &(2RI0H]]RI\WKHGLJLWDOFRXSRQSODWIRUPRIWKHIXWXUH0H]]RI\VLPSOL¿HVWKHSURFHVVRIFUHDWLQJGLVWULEXWLQJUHGHHPLQJDQGPDQDJLQJFRXSRQVDQGPDNHVLWHDV\WRODXQFKSRZHUIXOPDUNHWLQJFDPSDLJQVZLWKQRWHFKQLFDOH[SHUWLVHUHTXLUHG:LWKWKHLUHDV\WRXVH$3,V\RXFDQLQWHJUDWHWKHSODWIRUPLQWR\RXUH[LVWLQJV\VWHPRUEXLOGDFXVWRPVROXWLRQIURPVFUDWFK6D\JRRGE\HWRFRPSOLFDWHGFRXSRQPDQDJHPHQWDQGKHOORWR0H]]RI\WKHXOWLPDWHGLJLWDOFRXSRQSODWIRUPIRUDOO\RXUSURPRWLRQDOQHHGV'LFN\¶VXOWLPDWHYLVLRQLVWRKHOSVDYHRXUSODQHWE\JRLQJJUHHQZLWKSDSHUOHVVFRXSRQV+LVPLVVLRQLVWRFUHDWHDVHFXUHHDV\WRXVHDQGUHOLDEOHGLJLWDOFRXSRQSODWIRUPWKDWHQDEOHVEXVLQHVVHVWRTXLFNO\DQGFRQYHQLHQWO\GLVWULEXWHGLJLWDOFRXSRQVWRWKHLUFXVWRPHUV%\SURYLGLQJGLJLWDOFRXSRQVWKH\FDQDOOPDNHDWUHPHQGRXVFRQWULEXWLRQWRUHGXFLQJRXUHQYLURQPHQWDOIRRWSULQWDQG¿JKWLQJJOREDOZDUPLQJ%\XWLOL]LQJGLJLWDOFRXSRQSODWIRUPVZHFDQKHOSSURWHFWRXUSODQHWDQGUHGXFHWKHHQYLURQPHQWDOH\ruHFWVRISDSHUEDVHGFRXSRQV*RLQJJUHHQZLWKSDSHUOHVVFRXSRQVLVDQHDV\DQGLPSRUWDQWZD\WRKHOSVDYHRXUSODQHW/HW¶VPDNHDGL üHUHQFHWRJHWKHU/HW¶VOHDUQPRUHDERXW'LFN\¶VPLVVLRQDQGMRXUQH\WRJHWKHUWRWUXO\PDNHDGL üHUHQFH8OWLPDWH'LJLWDO&RXSRQ6ROXWLRQ0H]]RI\LVWKHRQHVWRSVKRSIRUDOOGLJLWDOFRXSRQQHHGV(VWDEOLVKHGLQWKLVSODWIRUPKDVEHHQOHDGLQJWKHZD\LQSURYLGLQJLQQRYDWLYHFRXSRQVROXWLRQVWREXVLQHVVHVDFURVV$VLD:KHWKHU\RX¶UHDVPDOOEXVLQHVVRZQHURUDODUJHHQWHUSULVH0H]]RI\¶VFRXSRQSODWIRUPZLOOPDNH\RXUOLIHDZKROHORWHDVLHU:LWKWKLVSODWIRUPPHUFKDQWVFDQFUHDWHLVVXHGLVWULEXWHUHGHHPDQGUHFRUGWKHLURZQGLJLWDOFRXSRQVZLWKMXVWDPRELOHSKRQHXS\RXKHDUGWKDWULJKWRXQRORQJHUKDYHWRVSHQGKRXUVSULQWLQJRXWSDSHUFRXSRQVRUZRUU\LQJDERXWUXQQLQJRXWRIWKHP0H]]RI\¶VGLJLWDOFRXSRQVROXWLRQLVIDVWHDV\DQGHFRIULHQGO\,WR\ruHUVDFRPSUHKHQVLYHDOOLQRQH'LJLWDO&RXSRQ3ODWIRUPWRHPSRZHUEXVLQHVVHVWRHDVLO\FUHDWHGLVWULEXWHUHGHHPDQGPDQDJHFRXSRQV7KHLUSODWIRUPHOLPLQDWHVWKHQHHGIRUWHFKQLFDOVNLOOVDQGHQDEOHVEXVLQHVVHVWRTXLFNO\FUHDWHPDUNHWLQJFDPSDLJQVZLWKFRXSRQV)RUHYHQPRUHÀH[LELOLW\EXVLQHVVHVFDQLQWHJUDWHZLWKH[LVWLQJRUQHZV\VWHPVWKURXJKWKHLU$3,V:LWK0H]]RI\EXVLQHVVHVKDYHWKHVLPSOHVWPRVWH\rvFLHQWZD\WRWDNHDGYDQWDJHRIWKHSRZHURIGLJLWDOFRXSRQV7KH\GRQ¶WMXVWEXLOGGLJLWDOFRXSRQVDQGGHVLJQPHUFKDQWDQGFRQVXPHUDSSVWKH\¶UHLQWKHEXVLQHVVRIFUHDWLQJ'LJLWDO0DUNHWLQJ 0DU7HFK VROXWLRQVWKDWFUHDWHVKDUHUHGHHPDQGPHDVXUHUHVXOWV7KHLUJRDOLVWRPDNHDSRVLWLYHLPSDFWLQWKHFRQVXPHUDQGPHUFKDQW¶VZRUOGSURYLGLQJLQYDOXDEOHYDOXHDQGFUHDWLQJDVPRRWKH[SHULHQFH$WWKHVDPHWLPHWKH\VWULYHWROLIWVSLULWVIRVWHUIULHQGVKLSVLJQLWHFUHDWLYLW\DQGKHOSSHRSOH¿QGMR\DQGKDSSLQHVV7KURXJKVKDULQJWKH\DLPWRPDNHOLIHPRUHYLEUDQWDQGFRORUIXO z}µuµššZ]vl}(šZv}(Ç}µŒo]všXtZvÇ}µuššZ]ŒvUšZÇÁ]ooµÇ}µŒŒÀ]X/š[šZš]u‰oX 7RIXOO\UHDOL]HWKHLUYLVLRQRI-2WKH\KDYHVHWXSDFRPSUHKHQVLYH',*,7$/&283213/$7)250WKDWZLOOEULQJFRQYHQLHQFHDQGSOHDVXUHWRERWKFRQVXPHUVDQGPHUFKDQWV:LWKWKHLUFRPSUHKHQVLYHSODWIRUPWKH\ZLOOHQVXUHWKDWHYHU\RQHJHWVWKHPRVWRXWRIWKHLUGLJLWDOH[SHULHQFH6KLIWLQJ6XFFHVV,QLWLDOO\WKH\GHYHORSHGD3RLQWRI6DOH 326 V\VWHPEXWWKHUHVSRQVHZDVXQGHUZKHOPLQJ'HVSLWHKDYLQJDJRRGGRZQORDGUDWHIRUWKHIUHHYHUVLRQPDQ\PHUFKDQWVZHUHVWLOOVWLFNLQJWRWKHLURZQH[LVWLQJ326LQVWHDGRIXVLQJWKHLUV$IWHUOHDUQLQJWKLVIDFWWKH\GHFLGHGWRIRFXVWKHLUH\ru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¶WQHHGWRGRZQORDGDQ\DSSVWRHQMR\WKHEHQH¿WVRIWKHLUFRXSRQV)RUFRXSRQFUHDWRUVDOO\RXQHHGLVDVPDUWSKRQHDQGWKHLUDSSZKLFKDOORZV\RXWRFUHDWHLVVXHDQGUHGHHP\RXUFRXSRQVZLWKHDVH6RVLPSOLI\\RXUSURPRWLRQDOVWUDWHJ\WRGD\ZLWKWKHLUVHFXUHDQGFRQYHQLHQWFRXSRQV'LJLWDO0DUNHWLQJ3LRQHHUV'ULYLQJ6XVWDLQDELOLW\'LFN\VD\V³:HZLVKWRUHSODFHDOOSDSHUEDVHGFRXSRQVZLWKRXUGLJLWDOFRXSRQSODWIRUPIRUWKHHQYLURQPHQWRIWKH(DUWK´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¿FDQWLPSDFWRQWKHLUEXVLQHVV%\DGRSWLQJWKHODWHVWWUHQGVLQFRGLQJDQGDSSOLFDWLRQWHFKQRORJ\WKH\DUHSURYLGLQJWKHLUFOLHQWVZLWKDEHWWHUFRXSRQSODWIRUPDQGVWD\LQJDKHDGRIWKHWHFKQRORJ\ZDYH7KLVKDVHQDEOHGWKHPWRJDLQDFRPSHWLWLYHDGYDQWDJHLQWKHPDUNHWDQGLQFUHDVHFXVWRPHUVDWLVIDFWLRQ,WKDVDOVRHQDEOHGWKHPWRUHGXFHRSHUDWLRQDOFRVWVDQGLQFUHDVHH\rvFLHQF\ZKLFKKDVXOWLPDWHO\OHGWRLPSURYHGSUR¿WDELOLW\DQGJURZWK5HYROXWLRQL]LQJ&RXSRQVLQWKH'LJLWDO$JH7KHVWFHQWXU\LVDGLJLWDODJHDQGGLJLWDOFRXSRQVDUHLQFUHDVLQJO\SRSXODU+RZHYHUSDSHUFRXSRQVUHPDLQMXVWDVFRPPRQLIQRWPRUHVRFUHDWLQJDQLPPHQVHPDUNHWWREHH[SORUHG0H]]RI\LVUHSODFLQJWKHVHSDSHUFRXSRQVDWDUDSLGSDFHZLWKLWVGLJLWDOSODWIRUPUHYROXWLRQL]LQJWKHFRXSRQLQGXVWU\DQGPDNLQJLWKDUGWRLPDJLQHWKHVHSDSHUFRXSRQVVXUYLYLQJWKURXJKWKHODWWHUKDOIRIWKHFHQWXU\:LWKWKHLULQQRYDWLYHSODWIRUPWKH\FDQKHOS\RXDFFHVVWKHPDUNHWDQGPD[LPL]H\RXUVDYLQJV'LFN\¶V$GYLFHIRU%XGGLQJ$VSLUDQWV³RXPXVWWKLQNRIWKHQHHGVRI\RXUFOLHQWV:KHQ\RXPHHWWKHLUQHHGVWKH\ZLOOXVH\RXUVHUYLFH,W¶VWKDWVLPSOH´'LFN\H[FODLPHG,I\RXDUHDEXGGLQJDVSLUDQWZLWKDSDVVLRQIRUH[FHOOLQJLQWKHHYHUHYROYLQJVHFWRU'LFN\¶VDGYLFHWR\RXLVWRVWD\LQIRUPHGDERXWWKHODWHVWWUHQGVWHFKQRORJLHVDQGLQGXVWU\GHYHORSPHQWVRXQHHGWREHDEOHWRLGHQWLI\FXVWRPHUQHHGVDQGWKHQWDLORU\RXUVHUYLFHVWRPHHWWKRVHQHHGV$GDSWDELOLW\LVNH\LQWRGD\¶VHYHUFKDQJLQJPDUNHW)XUWKHUPRUHGRQ¶WKHVLWDWHWRWDNHULVNVDQGWKLQNRXWVLGHWKHER[5HVHDUFKOHDUQDQGLQQRYDWHWRUHPDLQFRPSHWLWLYH)LQDOO\GRQ¶WIRUJHWWRQHWZRUNDQGEXLOGUHODWLRQVKLSVZLWKRWKHUSURIHVVLRQDOVLQWKHVHFWRU:LWKWKHULJKWDWWLWXGHDQGGHGLFDWLRQ\RXFDQPDNHLWLQWKLVG\QDPLFLQGXVWU\ &,2 ,}vP}vP[D}šKµššv]vPµ]vÁŒr}Œ‰,µ.9;㒀}oŒv,}vP}vPÁŒr,}vP}vP.6;嘐}oŒv}]Ÿ}všñì}u‰v]š}t}Œl&}Œr^]o]}vZÀ]ÁDPÌ]vD}š/vv}ÀŸÀ]P]šo}µ‰}vWož}Œur}Œ‰,µîvZµvvŒrh‰}(soµŒŸ}v]vdZv}o}PÇrvPo/vÀšuvš&}µvŸ}vv,}vP}vPdŒÀo}‰uvš}µv]o,}vP}vP[D}šsoµo^ŒÀ]ÁŒ~îìíôrD]Ì}v'Œ}µ‰dZD}šîìu]Œ}u‰vÇ}(îìíôrD]ŒŒ}ŒZÀ]ÁDPÌ]v^uŒš‰‰}(šZzŒ~îìíôrD]Ì}v'Œ}µ‰îìíô}Œ‰}ŒšÆoovÁŒr}Œ‰}Œšs]]}vDPÌ]víì&šš'Œ}Á]vPZš]odZv}o}PÇ^}oµŸ}vWŒ}À]Œš}tšZîìíõrWµ]v,o]víìD}š/u‰Œ]À^šŒšµ‰îìíõrX}udZíìD}šu]Œ}u‰v]š}tšZ]vîìíõrdZdZv}o}PÇŒ]všZh^í쐚^šŒšµ‰}(dZzŒîìíõr^]o]}vZÀ]ÁDPÌ]v&š&}ŒÁŒdZ}u‰vÇîìíõrµ]vWDPÌ]vd}‰îì}u‰v]Á]šZD}š]Œµ‰ŸÀ^}oµŸ}v]vîìîìr/vµšŒÇt]ŒDPÌ]ví쐚WŒ(}Œu]vPµ]v.9;㒀Œ}(šZzŒîìîìrµ]vŒP oošZvµšv}ošÇ}µvš}ŒšU]šŒ]µšUŒuUvuvP(}Œ]P]šo}µ‰}vÁ]šZ]v}v‰}ÁŒ(µo‰ož}Œu}všZo}µX  \n!+"/."/ ,o‰]vPµ]v^ÀD]oo]}vÇK‰Ÿu]Ì]vPdZ]�Œ}P]ŸEšÁ}Œl $ PDMRUIDFWRUWKDWGHFLGHVDQRUJDQL]DWLRQ¶VVXFFHVVWRGD\LVLWVVXSSO\FKDLQPDQDJHPHQWVWUDWHJ\,WVORJLVWLFVDQGWUDQVSRUWDWLRQQHWZRUNLQSDUWLFXODUFDQPDNHRUEUHDNDEXVLQHVVD\ruHFWLQJFXVWRPHUVHUYLFHOHYHODJUHHPHQWVDQGUHDOWLPHGHOLYHU\WUDFNLQJ1RPDWWHUKRZSUHSDUHGDQRUJDQL]DWLRQLVPLQRURUPDMRUORJLVWLFVFKDOOHQJHVDUHERXQGWRRFFXUZLWKWKHG\QDPLFQDWXUHRIEXVLQHVV,IQRWGHDOWZLWKSURSHUO\WKRVHFKDOOHQJHVPLJKWFDXVHDVXEVWDQWLDO¿QDQFLDOORVV0DQ\FRPSDQLHVFROODERUDWHZLWKDQH[SHULHQFHGORJLVWLFVVHUYLFHSURYLGHUWRUHGXFHFRPSOLFDWLRQVDQGPLQLPL]HRUUHFODLPORVVHVLQYROYHGLQVXSSO\LQJWKHLUSURGXFWWRWKHPDUNHW$)6/RJLVWLFVLVDWKLUGSDUW\ORJLVWLFV 3/ SURYLGHUNQRZQIRULWVH[WHQVLYHH[SHULHQFHDQGH[SHUWLVHLQRSWLPL]LQJORJLVWLFVVSHQGDQGRSHUDWLRQVZLWKWUDQVSDUHQF\DQGDXWRQRP\7KH\PDQDJHVRPHRIWKHPRVWHVVHQWLDOSDUWVRIWKHVKLSSLQJOLIHF\FOHIRUWKHLUFOLHQWVLQFOXGLQJVKLSPHQWH[HFXWLRQWUDFNLQJLQYRLFHDXGLWSD\PHQWDQDO\WLFVFODLPVDQGPRUHWRXQORFNKLGGHQYDOXH$)6¶VVHDVRQHGOHDGHU7RP1LJKWLQJDOH &(2 DQGKLVPRWLYDWHGDQGKLJKO\VNLOOHGZRUNIRUFHKHOSFOLHQWVDFKLHYHWKHLUORJLVWLFVREMHFWLYHVDQGSURDFWLYHO\VROYHSUREOHPVEHIRUHWKH\DULVHXVLQJGDWDGULYHQSURFHVVHVDQGEHVWLQFODVVWHFKQRORJ\/HW¶VH[SORUH$)6¶VKLVWRU\VHUYLFHVDQGWKHLUMRXUQH\WREHFRPHWKHPRVWUHOLDEOHORJLVWLFVVROXWLRQIRUWKHLUFOLHQWV)RUW\HDUVRI([FHOOHQFH$)6LVDQRQDVVHWEDVHGQRQDVVHWELDVHG3/KHDGTXDUWHUHGLQ6KUHYHSRUW/RXLVLDQD)RXQGHGE\%ULDQ%DUNHULQ$)6FHOHEUDWHVLWVWKDQQLYHUVDU\WKLV\HDUDQGFRQWLQXHVWRHYROYHE\DVVHPEOLQJWKHEHVWSHRSOHSURFHVVHVDQGWHFKQRORJ\WRHTXLSFOLHQWVIRUVXFFHVVLQDFKDQJLQJPDUNHWSODFH2YHUWKHSDVWIRXUGHFDGHVWKH3/KDVJURZQWREHFRPHDWRS3/LQWKH86DQG&DQDGD,WKDVEXLOWDURVWHURIRYHUFOLHQWVDFKLHYLQJDQDYHUDJHFOLHQWWHQXUHRIDOPRVW\HDUVDQGJHQHUDWLQJPRUHWKDQPLOOLRQLQWRWDODQQXDOFOLHQWVDYLQJV:LWKDFTXLVLWLRQVLQLWV\HDUKLVWRU\WKHRUJDQL]DWLRQUHFHQWO\DFTXLUHGD7RURQWREDVHGIUHLJKWDXGLWDQGSD\PHQW )$3 FRPSDQ\UHVXOWLQJLQ$)6EHFRPLQJWKHQHZODUJHVW)$3FRPSDQ\LQ&DQDGD³:KLOHRXUURRWVDUHLQ)$3ZHQRZR üHUDZLGHUDQJHRIGDWDGULYHQORJLVWLFVVHUYLFHVWKDWDFFRXQWIRUQHDUO\ELOOLRQLQWUDQVSRUWDWLRQVSHQGLQJDQQXDOO\VD\VWKHFRPSDQ\\nVH[HFXWLYHWHDP7RGD\$)6DXGLWVDOOPRGHVRIWUDQVSRUWDWLRQSURYLGHV/7/DQGSDUFHOFRVWPDQDJHPHQWDQGWUDQVSRUWDWLRQPDQDJHPHQWLQFOXGLQJIUHLJKWEURNHUDJHDQGIUHLJKWIRUZDUGLQJDQGR\ruHUVFXVWRPL]HGDQDO\WLFDOVROXWLRQVDVZHOO'DWDGULYHQ3URFHVVHV'DWDLVWKHIRXQGDWLRQRIZKDW$)6R\ruHUV7KHPRUHGDWDLWVGDWDVFLHQWLVWVKDYHWKHPRUH$)6FDQKHOSFXVWRPHUVUHGXFHZDVWHGULYHGRZQULVNLQFUHDVHWKHSUHGLFWDELOLW\RISULFLQJDQGLPSURYHVHUYLFHOHYHOV Š‹Ž‡‘—””‘‘–•ƒ”‡‹ ᙇ‘™‘¡‡”ƒ™‹†‡”ƒ‰‡‘ˆ–‡…Š‘Ž‘‰›憔‹˜‡Ž‘‰‹•–‹…••‡”˜‹…‡•–Šƒ–ƒ……‘—–ˆ‘”‡ƒ”Ž›Hww„‹ŽŽ‹‘‹–”ƒ•’‘”–ƒ–‹‘•’‡†‹‰ƒ—ƒŽŽ›ä 2FWREHUZZZWKHFLRZRUOGFRP dZîìD}šu]Œ}u‰v]}(îìîï 'DWDDQGWHFKQRORJ\DUHFULWLFDOWRROVIRUDGDSWLQJWRYDULRXVVXSSO\FKDLQVKRFNVDQG$)6QRWHVWKDWTXLFNUHVSRQVHWLPHVDQGGDWDGULYHQDOWHUQDWLYHVDUHSDUWRISURYLGLQJDVHDPOHVVH[SHULHQFHIRULWVFXVWRPHUV2QHH[DPSOHLV/7/FRQJHVWLRQ$VWKHLQGXVWU\IDFHVWUXFNLQJFDSDFLW\FKDOOHQJHVWKHUHFDQEHVLWXDWLRQVZKHUHFDUULHUVUHDFKFDSDFLW\DQGSURYLGHYHU\ODWHQRWLFHVRPHWLPHVOHDYLQJFXVWRPHUVWR¿QGDQDOWHUQDWLYHVROXWLRQLQMXVWRQHEXVLQHVVGD\7RDGDSWVKLSSHUVPXVWKDYHDFFHVVWRDOWHUQDWLYHVROXWLRQVLQFOXGLQJDSRRORIDGGLWLRQDOSUHYHWWHGFDUULHUVRULQVRPHFDVHVDGL\ruHUHQWPRGHHQWLUHO\'DWDHQDEOHV$)6WRFRQ¿GHQWO\SURYLGHQHZRSWLRQVZLWKFRPSDUDEOHVHUYLFHDQGFRVWXOWLPDWHO\HPSRZHULQJFOLHQWVWRSLYRWTXLFNO\DQGNHHSWKHLUEXVLQHVVPRYLQJ%XW$)6XVHVGDWDIRUPRUHWKDQMXVWVROYLQJFOLHQWFKDOOHQJHVWKH\DOVRKDYHDGDWDULFKSUHGLFWLYHWRROWKDWSURYLGHVXVHIXOIUHLJKWLQGXVWU\LQVLJKWVDWQRDGGLWLRQDOFRVW$)6VD\V³2QDEURDGHUOHYHOZHOHYHUDJHGDWDIURPWKHRYHUELOOLRQLQIUHLJKWVSHQGZHPDQDJHWRSURYLGHPDUNHWZLGHLQVLJKWV2XUWHDPZRUNVZLWK&RZHQDOHDGLQJIXOOVHUYLFHLQYHVWPHQWEDQNWRSURGXFHDTXDUWHUO\IUHLJKWLQGH[WKDWQRWRQO\SURYLGHVKLVWRULFDOLQVLJKWVEXWOHYHUDJHVPDFKLQHOHDUQLQJDOJRULWKPVWRR üHUDIRUZDUGORRNLQJSHUVSHFWLYHRQZKHUHWKHIUHLJKWPDUNHWLVKHDGHG´2YHUFRPLQJ&KDOOHQJHV6XSSO\FKDLQGLVUXSWLRQKDVEHHQDFRPPRQWRSLFIURPWKH¿YHR¶FORFNQHZVWRODWHQLJKW79GHEDWHV7ZRPDLQIDFWRUVKDYHSUHSDUHGFRPSDQLHVZHOOIRUWKLVDQG$)6KDVEHHQDWWKHFHQWHURIERWK % "/"!&'4\n  'd}uE]PZŸvPoUK}(&^U]]šš}ŒÀ]oŒZ]‰XKÀŒšvÇŒP}Ud}u(}µvh‰PŒ^}o]ŒUv}vr‰Œ}.šPŒ}µ‰šZšv}µŒPv]v‰]Œ}šZŒš}šZvlšZ(vŒÀ]‰Œ}vvošZŒ}µPZš}(l]vvXd}uo}µŒŒvšoǐŒÀ}všZ}Œ}(ÀŒo}ŒPv]ÌŸ}vU]voµ]vP^ÇŒµhv]ÀŒ]šÇ–&Œvlo]v^µ‰‰oÇZ]vÀ]}ŒÇ}ŒU^DWUv(}ŒuŒoÇšZtŒZ}µµŸ}vZŒZ}µv]ovt}uv]vdŒµl]vPXWŒ]}Œš}&^Ud}uŒÀWŒ]všvK}(/všŒvŸ}voWlP^Z]‰‰]vPv]š}‰ŒŸvP}u‰v]Xd}uo}Zo]+ŒvšoŒZ]‰Œ}oš'EK~v}Á&Æ^µ‰‰oÇZ]vUD�}µ]vlU}vrÁÇ/vX~v}ÁyWKv^Zv]ŒEŸ}voXd}uZ}ÀŒîñÇŒ}(oŒZ]‰Æ‰Œ]vvŒ]vPoŒÀ]]}vvµv](Ç]vP(}Œš}&^X 2FWREHU ZZZWKHFLRZRUOGFRP  'DWDDQG$PRGHOWKDWLVQRQDVVHWEDVHGDQGQRQDVVHWELDVHG7KHÀH[LELOLW\RIWKDWPRGHOLVNH\±QRWOLPLWHGWRDVVHWVWKDW\RXRZQDQG\RXFDQXVHGDWDWRUHVSRQGTXLFNO\DQGHQVXUHWKDWWKHVROXWLRQVEURXJKWWRFXVWRPHUVKDYHQRELDVWRZDUGRZQHGDVVHWVDQGPDWFKWKHVLWXDWLRQDWKDQG,WLVDERXWEHLQJDEOHWRUHVSRQGSURPSWO\DQGR\ruHUDVHDPOHVVH[SHULHQFHWRFXVWRPHUV2QHRI$)6¶VUHWDLOFOLHQWVUHOLHGRQWKHVDPHFDUULHUWRGHOLYHUPRVWRIWKHLUSDUFHOVIRURYHU\HDUV+RZHYHUGXULQJWKH&29,'SDQGHPLFVHUYLFHLVVXHVEHJDQWRDULVHZKHQRQOLQHVKRSSLQJLQFUHDVHGDQGVKLSSLQJFDSDFLW\ZDVOLPLWHG,QWKLVVLWXDWLRQ$)6KHOSHGWKHUHWDLOHUVZLWFKWRDQRWKHUFDUULHUZLWKFRPSHWLWLYHSULFLQJ±R\ruHULQJWKHFKDQFHWRDGGUHVVVHUYLFHDQGFDSDFLW\LVVXHV0RUHRYHUWKH$)6 %.#" &./' /4"&+—&^Zvo}vPršŒuooÇvÀoµšÁ]šZ]v}µŒ}ÀŒooo}P]Ÿ}‰ŒŸ}vX&^}vŸvµooÇu}všŒš]š}uu]šuvšš}}µŒµXdZÇÁ}ŒlÁ]šZ}µŒšuš}ÁŒ}uu}vP}ovZÀvoµš}(}µ}v}µŒ}Œµ]vŒšZŒšZvP«vPµŒ]]všZu]Œ}ruvPuvš}(ŒŒ]ŒUo]uv]vÀ}]Xtlv}Á&^oÁǐZ}µŒlJ_}Z]l©U]Œš}Œ}(K‰ŒŸ}vUÀvŒ–X—&^Z}u‰Œš}(šZDvv�lšuXDǐš+vP}]ŒšoÇš}šZuUšZÇ}‰Ÿu]Ì}µŒ‰Œ}všlÁ}Œl}+}µŒ‰oš}Áv(}µ}v}µŒ}Œµ]vX_^ZvZ}Áo©U&KUDvv�l˜P^µ‰‰oÇ WHDPQHJRWLDWHGDFRQWUDFWWKDWFUHDWHGDUHGXFWLRQLQRYHUDOOSDUFHOVSHQGIRUWKHLUFOLHQW([SDQVLRQ3ODQVIRUDQG%H\RQG:KHQDVNHGDERXWWKHIXWXUHVFDOLQJSODQVIRU$)6&(27RP1LJKWLQJDOHUHVSRQGHGE\VD\LQJ³,WLVDQLQWHUHVWLQJWLPHLQRXULQGXVWU\RXKDYH3/VOLNHXVDWWKHQH[XVRIDOOWKLVFKDRVKHOSLQJFXVWRPHUVUHVSRQGTXLFNO\+HDGGV³$)6KDVDOHJDF\RILQQRYDWLRQDQGRXUDSSURDFKLVWRFRQWLQXHWREXLOGRXWRXUVXLWHRIFRUHVHUYLFHV )$3/7/3DUFHO7UDQVSRUWDWLRQ0DQDJHPHQW RQWKDWIRXQGDWLRQRIGDWD:RUGVRI*XLGDQFH7RPKDVH[WHQVLYHH[SHULHQFHLQWKHORJLVWLFVLQGXVWU\7KHH[SHUWLVHDWKLVOHYHOFDQSURYHWREHLQVLJKWIXOIRUDEXGGLQJHQWUHSUHQHXU:KHQDVNHGZKDWKHZRXOGZDQWWRVD\WRWKRVHDVSLULQJWRHQWHUWKHLQGXVWU\KHVD\V³'HYHORSDVHUYLFHGULYHQPLQGVHW%HHDJHUWRVHUYH\RXUWHDPDVDOHDGHURUVXEMHFWPDWWHUH[SHUWDQGVHUYH\RXUFOLHQWVE\PHHWLQJWKHLUQHHGVDQGH[FHHGLQJWKHLUH[SHFWDWLRQV´ 2'/ïW�^ŒÀ]ÁŒWtZ}–tZ}]v�}P]ŸïW�^}µŒWŒušŒ}vPv}]šzŒWîìîíWŒ}µš}ŒŒÀ]WKÀŒooïW�ŒÀ]t}uv]vdŒµl]vPÁŒW&^š+uuŒZ}v}Œ‰Œš}(—t}uvš}tšZ—zŒWîìîíKšZŒÁŒWd}‰}u‰v](}Œt}uvš}t}Œl(}Œ]vdŒv‰}ŒšŸ}v^}µŒWt}uv]vdŒµl]vP}]Ÿ}vzŒWîìîí 2FWREHUZZZWKHFLRZRUOGFRP &,2 +RZGHODVLJQLV%XLOGLQJD3DWKWR0LQRULW\(PSRZHUPHQWDQG,QGXVWU\$GYDQFHPHQWWWDLQLQJJUHDWQHVVLVQ\nWRQO\DERXWSURGXFLQJZRUNWKDWLVWHFKQLFDOO\SUR¿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nVOHDGHUVKLSGHODVLJQKDVEHFRPHDOHDGLQJIRUFHLQFUDIWLQJSURGXFWVWKDWQRWRQO\IXO¿OOFXVWRPHUV\nQHHGVEXWDOVREXLOGDGHHSHUFRQQHFWLRQZLWKWKHLUWDUJHWDXGLHQFH7KHLUWDOHQWHGWHDPRIGHVLJQHUVGHYHORSHUVDQGEUDQGVWUDWHJLVWVVKDUH2VFDU\nVYLVLRQDQGSDVVLRQIRUFUHDWLQJPHDQLQJIXODQGLPSDFWLQJZRUNGHODVLJQ\n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ruDVGHODVLJQQRZKDVDQLPSUHVVLYHFOLHQWEDVHPXOWLSOHDZDUGVDQGWKHLUFRQWHQWKDVEHHQDFFHVVHGE\PLOOLRQV8OWLPDWHO\GHODVLJQ\nVMRXUQH\IURPKXPEOHEHJLQQLQJVWRJOREDOVXFFHVVKDVEHHQGULYHQE\WKHLUH[FHSWLRQDOFRPPLWPHQWWRH[FHOOHQFHDQGXQZDYHULQJIRFXVRQFUHDWLQJVROXWLRQVWKDWPDNHDSRVLWLYHLPSDFW$VZHVSRNHZLWKWKHYLEUDQW2VFDUZHH[SHULHQFHGDZHDOWKRIHQJDJLQJVWRULHVDERXWKLVMRXUQH\LQWRHQWUHSUHQHXUVKLSLQFOXGLQJVRPHYDOXDEOHLQVLJKWVLQWRKLVEXVLQHVVYHQWXUH/HWXVH[SORUHIXUWKHU3OHDVHEULHIRXUDXGLHQFHDERXW\RXURUJDQL]DWLRQLWV863VDQGKRZLWLVFXUUHQWO\SRVLWLRQHGDVDSURPLQHQWQDPHLQWKHLQGXVWU\GHODVLJQ\nVXQLTXHVHOOLQJSRLQWLVLWVDELOLW\WRSURYLGHD  SURFHVVWKDWFRQVWDQWO\DGDSWVWRWKHUHTXLUHPHQWVRIRXUFOLHQWV HVWDEOLVKHGFRPSDQLHVVWDUWXSVDQGLQGLYLGXDOV LQDZD\WKDWSURYLGHVFRQVWDQWLQQRYDWLRQWKDW\nVERWKH\rvFLHQWDQGH\ruHFWLYH:HWDLORURXUDSSURDFKWRWKHLUQHHGVDFKLHYLQJVXFFHVVDQGEHFRPLQJDOHDGLQJQDPHLQWKHLQGXVWU\2XUZRUNLVVROGLQRYHUFRXQWULHVIHDWXUHGLQ0R0$'HVLJQ6WRUHFDWDORJVDQGVHHQDULVHLQHQJDJHPHQWLQ$SSOH6WRUHVJOREDOO\:HDUHSURXGRIZKDWZHKDYHDFKLHYHGDQGORRNIRUZDUGWRSURYLGLQJRXUFXVWRPHUVZLWKRXWVWDQGLQJUHVXOWV % 2FWREHUZZZWKHFLRZRUOGFRPdZîìD}šu]Œ}u‰v]}(îìîï KŒ�,Œ'}uÌ&}µvŒvKo]Pv 2FWREHUZZZWKHFLRZRUOGFRP 6KHGVRPHOLJKWRQ\RXUR\ruHULQJVDQGKRZWKH\LPSDFWWKHLQGXVWU\DVZHOODV\RXUFOLHQWV2XUDSSVHUYLFHVLQFOXGH5HWDLO([SHULHQFHV(QWHUSULVH*HQHUDO0DUNHW(&RPPHUFH6ROXWLRQV$XJPHQWHG5HDOLW\ $5 0L[HG5HDOLW\ 05 *DPHV2XUZHEVLWHVHUYLFHVLQFOXGH+HDGOHVV&RQWHQW0DQDJHPHQW6\VWHP &06 3URJUHVVLYH:HE$SSOLFDWLRQ 3:$ :RUG3UHVV(FRPPHUFH6ROXWLRQV0LFURVHUYLFHV,QWHUDFWLYH([SHULHQFHV2XULQWHUDFWLYHH[SHULHQFHVVHUYLFHVLQFOXGH&RQQHFWHG3URGXFWV ([SHULHQFH6PDUW3URGXFW3URPRWLRQV,PPHUVLYH6SDFHV ([KLELWLRQV0L[HG5HDOLW\2XUSK\VLFDOSURGXFWVHUYLFHVLQFOXGH7KH2\rvFH7KH.LWFKHQ7KH+RPH$UW'HFRU3OHDVHEULHIXVDERXWWKHIHDWXUHGSHUVRQ\nV V MRXUQH\LQWKHLQGXVWU\DQGKRZWKH\KDYHFRQWULEXWHGWRWKHFRPSDQ\\n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rvFDF\DQGKDYHPDGHLWDYDLODEOHDVRSHQVRXUFHWREHQH¿WWKHLQGXVWU\&RQVHTXHQWO\ZHKDYHEHFRPHDUHVSHFWHGFRPSDQ\ZLWKDGHYRWHGWHDPRIH[SHUWVHQDEOLQJRXUFXVWRPHUVWRUHDFKWKHLUREMHFWLYHVTXLFNO\DQGH\rvFLHQWO\0RUHRYHUZHKDYHUHFHLYHGDZDUGVDQGSUDLVHIURPPDMRUPHGLDRXWOHWVDQGRXUSXEOLVKHGPDWHULDOKDVEHHQVHHQE\DZLGHDXGLHQFHHQDEOLQJWKHPWRFUHDWHUHPDUNDEOHZRUNLQDWLPHO\PDQQHU%HLQJDQH[SHULHQFHGOHDGHUVKDUH\RXURSLQLRQRQKRZWKHDGRSWLRQRIPRGHUQWHFKQRORJLHVKDVLPSDFWHGWKHVHFWRU+RZKDV\RXURUJDQL]DWLRQLQFRUSRUDWHGVXFKWHFKQRORJLHVLQWRLWVGDLO\RSHUDWLRQV",WLVHVVHQWLDOWRDGRSWWHFKQRORJLHVWKDWPHHW\RXUQHHGVDQGNHHS\RXULQWHUQDOVHUYLFHVXSWRGDWHWRHQVXUHWKDW 2FWREHUZZZWKHFLRZRUOGFRP WKH\DUHEXLOWLQWKHPRVWH\rvFLHQWIDVWDQGODWHVWZD\VWKLVJXDUDQWHHVWKDW\RXDUHR\ruHULQJVRPHWKLQJWKDWLVZHOOFUDIWHGDQGSURYLGHVYDOXH$GGLWLRQDOO\LQWKHSDVW\HDUZHKDYHGRFXPHQWHGRXUSURJUHVVDQG¿QGLQJVRQRXUEORJZKLFKQRWRQO\KHOSVRXUFOLHQWVXQGHUVWDQGRXUZRUNDQGWKHEHQH¿WVLWEULQJVWKHPEXWLVDOVRRSHQVRXUFHDQGDLPVWRDGYDQFHVRFLHW\\nVXQGHUVWDQGLQJRISURGXFWGHYHORSPHQW,VWURQJO\EHOLHYHWKDWLWLVYLWDOWRDFTXLUHWKHIXQGDPHQWDOVFRUUHFWO\EHIRUHYHQWXULQJLQWRPRUHLQWULFDWHDQGFRPSOH[DGYDQFHGWHFKQRORJLHV2XUH\ruRUWVDUHFRQFHQWUDWHGRQWKHPRVWXSWRGDWHWUHQGVLQGLJLWDOSURGXFWFUHDWLRQWRHQVXUHWKDWZHGHOLYHUWKHKLJKHVWVWDQGDUGVWRRXUFXVWRPHUVDVLQH\rvFLHQFLHVFRVWWKHZRUOGDQHVWLPDWHGELOOLRQDQQXDOO\ZLWKH[LVWLQJRQWKHEDFNHQG:KDWLQLWLDOFKDOOHQJHVGLG\RXDQG\RXURUJDQL]DWLRQIDFHDQGKRZGLG\RXGULYH\RXURUJDQL]DWLRQWRVXVWDLQRSHUDWLRQV"7KHJUHDWHVWFKDOOHQJHWKDWZHIDFHGDVDQRUJDQL]DWLRQZDVPDNLQJVXUHWKDWZHGHOLYHUHGWKHKLJKHVWTXDOLW\WRRXUFOLHQWVLQDFRVWH\ruHFWLYHPDQQHUWKDWJXDUDQWHHVWKDWWKH\PHHWWKHLUREMHFWLYHVDQGVHHDKHDOWK\UHWXUQRQLQYHVWPHQW7KHZD\ZHGRWKLVLVE\EULQJLQJLQWKHEHVWLQWHUQDOUHVRXUFHVDQGKLULQJEHVWLQFODVVIUHHODQFHUVIURPRXUQHWZRUNZLWKWKHSKLORVRSK\RISURYLGLQJWKHULJKWUHVRXUFHIRUWKHULJKWWDVN:KDWZRXOGEH\RXUDGYLFHWREXGGLQJHQWUHSUHQHXUVZKRDVSLUHWRYHQWXUHLQWRWKHLQGXVWU\",EHOLHYHWKLVDUWLFOHE\6FRWW*VKRXOGEHUHDGDQGWREHUHPHPEHUHGDFURVVWLPH3DUWLFXODUO\\nRXVKRXOGEHDEOHWRZDONLQWRDURRPDQGEHOLHYH\RXFRXOGRYHUSRZHURXWUXQRURXWODVWHYHU\SHUVRQLQWKHURRP\n7RWKLV,ZRXOGDGGIRFXVRQ\RXUSK\VLFDODQGPHQWDOKHDOWKDQGVWDPLQDDQGLJQRUHWKRVHWKDWWHOO\RXLW\nVQRWSRVVLEOH&XWGUXJVDQGWKRVHWKDWFRQVXPHWKHPRXWRI\RXUOLIHDWDOOFRVWVJRIRUDUXQHYHU\GD\DQGIRFXVRQ\RXUHYROXWLRQ5HPLQGHGE\P\IULHQG$GDP7XUQEXOOLWLVPRUHLPSRUWDQWWREHWKHSHUVRQ\RXGHVLUHWREHWKDQWREHZLWKSHRSOH\RXWKLQN\RXVKRXOGEHZLWK6WHYH-REV\nIDPRXVVD\LQJ6WD\+XQJU\6WD\)RROLVKVHUYHVDVDUHPLQGHUWKDWWKHMRXUQH\WRHQWUHSUHQHXUVKLSLVFKDOOHQJLQJVRLWLVHVVHQWLDOWRVWDUWHDFKGD\ZLWKWKHHDJHUQHVVRIDEHJLQQHUDQGWKHGULYHWREHWKHSHUVRQ\RXZDQWWREH+RZGR\RXHQYLVLRQVFDOLQJ\RXURUJDQL]DWLRQ\nVIXQFWLRQVDQGR\ruHULQJVLQDQGEH\RQG"7KHZD\ZHVFDOHIXQFWLRQVLVE\WHDFKLQJHDFKRWKHUWKHVNLOOVWKDWZHKDYHVRWKDWFROODERUDWLYHO\ZHFDQH[HFXWHUDWKHUWKDQSODFLQJWKHZHLJKWRQDVLQJOHLQGLYLGXDO,WDOVRKHOSVXVHPSDWKL]HZLWKZKDWVRPHRQHHOVHLVGRLQJDQGQRWUHTXHVWRXWODQGLVKWKLQJVIURPHDFKRWKHU7KHPD[LPXPVFDOHWKDWZHZLOOHYHUUHDFKLVLQGLYLGXDOVDVH[FHOOHQFHLVOLPLWHGDQGKLJKSHUIRUPDQFHLVGL\rvFXOWWRVFDOHSDVWDSRLQW,UHÀHFWRQZRUOGFODVVVSRUWVWHDPVOLNH5HDO0DGULGZKRVHVTXDGLVOLPLWHGWRRIWKHEHVWSOD\HUVRQWKHSODQHW3OHDVHJLYHXVDIHZWHVWLPRQLDOVRI\RXUFOLHQWVFXVWRPHUVDQGDOLVWRIDZDUGVUHFRJQLWLRQVWKDWDFFXUDWHO\KLJKOLJKW\RXUFRPSDQ\\nVSRVLWLRQLQWKHPDUNHW&OLHQWV*RRJOH0R0$$SSOH6DPVXQJ0DF6SRUWUDGHU1LNH'LDJHR7KHRQHFOXEIRUFUHDWLYLW\ ,&(;)LUVW%RUQ0DUNDEOH%OHQG2UJDQLF%DUEDULDQ&\OQGU9DOWHFK&KHLO 2FWREHUZZZWKHFLRZRUOGFRP -XGJH_+.'$*OREDO'HVLJQ$ZDUG3DFNDJLQJ3URGXFW'HVLJQ-XU\_$'&WK$QQXDO$ZDUGV-XU\0HPEHU_7KH):$12:*UDSKLF'HVLJQ-XU\_,QWHUQDWLRQDO'HVLJQ$ZDUGV_12:9RLFH95 (QWHUWDLQPHQW:HEVLWHV-XU\_7KH:HEE\V12:*UDQG-XU\_$\n'HVLJQ$ZDUGV0)$3URGXFWVRI'HVLJQ_7KH6FKRRORI9LVXDO$UWV1&0HQJ0HFKDQLFDO(QJLQHHULQJ_,PSHULDO&ROOHJH/RQGRQ:KDWLV\RXURSLQLRQRQWKHIXWXUHRIWKHLQGXVWU\FRQFHUQLQJFKDQJLQJFXVWRPHUSUHIHUHQFHVGXHWRDGYDQFHPHQWVDQGLQQRYDWLYHVHUYLFHV",¿UPO\EHOLHYHWKDWWKHIXWXUHRIWKHLQGXVWU\LQYROYHVWKHVDPHSUREOHPVWKDWZHIDFHWRGD\DQGDUJXDEO\WKDWZHKDYHIDFHGIRUGHFDGHVEHIRUH,ZDVERUQ7RRRIWHQFRPSDQLHVDQGLQGLYLGXDOVUXVKWRH[HFXWLRQVDQGGLVFXVVVFDOLQJEHIRUHWKH\KDYHLGHQWL¿HGDQHTXLWDEOHVROXWLRQZLWKDZHOOGH¿QHGDXGLHQFHGHODVLJQVWULYHVWRGHOLYHUFXWWLQJHGJHWHFKQRORJLHVDQGVROXWLRQVWKDWPHHWWKHUHTXLUHPHQWVRIGL\ruHUHQWFXVWRPHUVFRPPXQLFDWHH\ruHFWLYHO\DQGJHQHUDWHDUHWXUQRQLQYHVWPHQW7KLVFDQEHFKDOOHQJLQJDVWKHVROXWLRQVPXVWEHFXVWRPL]HGWRVROYHWKHFXVWRPHU\nVLVVXHVDQGEHFRPSUHKHQVLEOH7RJXDUDQWHHVXFFHVVGHODVLJQGHYRWHVH\ruRUWWRSUHFLVHO\GH¿QHWKHSUREOHPWKURXJKFXVWRPHULQWHUDFWLRQDQGWHVWLQJRISURWRW\SHV:LWKDZHOOGH¿QHGSODQDQGLPSOHPHQWDWLRQWKHFRPSDQ\FDQWKHQH[SDQGWRPHHWODUJHUGHPDQGVXOWLPDWHO\GHOLYHULQJDVDWLVIDFWRU\VROXWLRQ7KHZD\ZHVFDOHIXQFWLRQVLVE\WHDFKLQJHDFKRWKHUWKHVNLOOVWKDWZHKDYHVRWKDWFROODERUDWLYHO\ZHFDQH[HFXWHUDWKHUWKDQSODFLQJWKHZHLJKWRQDVLQJOHLQGLYLGXDO $ZDUGV 2FWREHUZZZWKHFLRZRUOGFRP $.H\'ULYHURI LQ2UJDQL]DWLRQV RXNQRZWKDWIHHOLQJZKHQ\RX\nUHLQDPHHWLQJZLWK\RXUERVVRUPDQDJHUDQGWKH\DVNIRULQQRYDWLYHLGHDVRUVROXWLRQVEXW\RXKROGEDFN":H\nYHDOOEHHQWKHUH7KHUHDVRQVDUHPDQ\IHDURIMXGJPHQWSDVWIDLOXUHVRUODFNRISV\FKRORJLFDOVDIHW\:KDWLIWKHUHZDVDVLPSOH\HWSRZHUIXOZD\WRXQORFNLQQRYDWLRQDQGFUHDWLYLW\LQRUJDQL]DWLRQVWKDWGLGQ\nWUHTXLUHH[SHQVLYHFRQVXOWDQWVRUFRPSOH[SURFHVVHV",W\nVFDOOHGHWKLFDOOHDGHUVKLS:KHQOHDGHUVGHPRQVWUDWHLQWHJULW\WUXVWZRUWKLQHVVDQGFDUHIRUWKHLUHPSOR\HHVLWFUHDWHVWKHFRQGLWLRQVIRULQQRYDWLRQWRÀRXULVK3HRSOHIHHOHPSRZHUHGWRWDNHULVNVYRLFHLGHDVDQGH[SHULPHQWZLWKRXWIHDURIFRQVHTXHQFHV7KH\WUXVWWKDWWKHLUOHDGHUVDQGFROOHDJXHVKDYHWKHLUEHVWLQWHUHVWVDWKHDUW7KHUHVXOWLVDQXQOHDVKLQJRIFUHDWLYLW\WKDWOHDGVWRQHZSURGXFWVVHUYLFHVDQGZD\VRIZRUNLQJWKDWGULYHEXVLQHVVJURZWK:KRNQHZOHDGHUVKLSVW\OHFRXOGEHVXFKDNH\GULYHURILQQRYDWLRQ",WWXUQVRXWWKDWLW\nVRQHRIWKHPRVWVLJQL¿FDQW\HWRYHUORRNHGIDFWRUVLQRUJDQL]DWLRQDOVXFFHVV5HDGRQWR¿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ru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ruHUHQWYRLFHVDOVRVLJQDOVWR\RXUWHDPWKDW\RXYDOXHIUHVKFRQFHSWV$VNRSHQHQGHGTXHVWLRQV5DWKHUWKDQDVNLQJQDUURZTXHVWLRQVZLWKRQHULJKWDQVZHUDVNRSHQHQGHGTXHVWLRQVWRVSXUQHZZD\VRIWKLQNLQJ)RUH[DPSOHLQVWHDGRI+RZFDQZHFXWFRVWVE\":KDWDUHVRPHZD\VZHPLJKWLPSURYHH\rvFLHQF\RURSWLPL]HUHVRXUFHV"2SHQHQGHGTXHVWLRQVHQFRXUDJHH[SORUDWLRQ$OORZWLPHIRUFUHDWLYLW\*LYH\RXUWHDPVSDFHDZD\IURPWKHLUXVXDOWDVNVWREUDLQVWRUPQHZLGHDV(YHQWDNLQJ±PLQXWHVDZHHNWRWKLQNIUHHO\FDQOHDGWRQHZLQVLJKWV/HW\RXUWHDPSXUVXHFRQFHSWVWKDWLQWHUHVWWKHPHYHQLIWKHEHQH¿WVDUHQRWLPPHGLDWHO\DSSDUHQW1HZLQQRYDWLRQVRIWHQDULVHIURPXQH[SHFWHGSODFHVW}ÁŒ}(šZ]oĀ.;ቐŒZ]‰ 2FWREHUZZZWKHFLRZRUOGFRP :LWKWKHSRZHURIHWKLFDOOHDGHUVKLS\RXFDQXQOHDVK\RXUWHDP\nVFUHDWLYHSRWHQWLDO%\SURPRWLQJWUXVWLQFOXVLYHQHVVDQGGLYHUJHQWWKLQNLQJ\RX\n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ru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ru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ÀRXULVK,I\RXZDQWDQRUJDQL]DWLRQWKDWOHDGVWKHSDFNZLWKGLVUXSWLYHWKLQNLQJDQGFXWWLQJHGJHVROXWLRQVPDNHGHYHORSLQJHWKLFDOOHDGHUVDWRSSULRULW\7KHUHZDUGVZLOOEHJDPHFKDQJLQJ 2FWREHUZZZWKHFLRZRUOGFRP 7 HFKQRORJ\KDVEHHQSOD\LQJDYHU\VLJQL¿FDQWUROHLQKXPDQXSOLIWPHQW%HLWVXUSDVVLQJWKHZDUFULVLVHQDEOLQJWKHDFFHVVRIWKHHDVWHUQKRUL]RQWRWKHZHVWRUWKHWUDQVJUHVVLQJDJHROGSUREOHPVZLWKIXWXUHSURRIVROXWLRQVWKHWHFKQRORJLFDOLQQRYDWLRQVKDYHVXUSULVHGWKHZRUOG8VKHULQJZLWKWKLVXQGHUVWDQGLQJWKHEXVLQHVVFRPPXQLW\KDVDOZD\VEHHQVFRXWLQJFORVHWVWKDWFRQVLVWRISUREOHPVDQGDUH\HWXQUHVROYHG(QFRXQWHULQJWKHEXVLQHVVFKDOOHQJHEHFRPHVWKH¿UVW7KHVHFRQGLVWRHQFRPSDVVDOOWKHVWDNHKROGHUVRIWKHSUREOHPDQGIDFLOLWDWHWKHPZLWKDVROXWLRQWKDWQRWRQO\VDWLV¿HVWKHGHPDQGLQJXUJHRIWKHEXVLQHVVFRPPXQLW\EXWDOVRDGYDQFHVWHFKQRORJLFDOVXSSRUWZKLOHHQKDQFLQJWKHXVHUH[SHULHQFHWRR$VD¿QDOKDPPHUWRWHFKQRORJLFDOH[FHOOHQFHLQWKHORJLVWLFVVSDFHEXVLQHVVHVKDYHXVKHUHGZLWK(53SODWIRUPHQDEOLQJTXLFNDQGHDV\RSHUDWLRQV7RGD\FORXGEDVHGV\VWHPVDUHLQWHJUDWLQJWKH$LU/RJLVWLFVLQGXVWU\ZKLOHIDFLOLWDWLQJDVHDPOHVVH[SHULHQFH2QHVXFKORJLVWLFVFRPSDQ\GULYLQJWKHWUDQVIRUPDWLYHZKHHOLQWKHDLUFDUJRVHJPHQWLVH&$5*2:$5(6SHDUKHDGLQJWKLVWUDQVIRUPDWLRQLV0U5DPHVK'DUEKD+HLVWKH&RIRXQGHUDQG&(2RIWKHFRPSDQ\DQGKDVDQHQULFKHGH[SHULHQFHDQGOHDGLQJWKHEXVLQHVVZRUOGZLWKKLVWHFKQRORJLFDOH[FHOOHQFH/HW¶VGLYHLQWRWKHLQWHUYLHZZKHUH5DPHVKVKHGVOLJKWRQWKHH&$5*2:$5(¶VNH\R\ruHULQJVDQGKLVEXVLQHVVDFXPHQWKDWOHGWKHFRPSDQ\WRDFKLHYHLWVGHVLUHGVXFFHVV%HORZDUHWKHLQWHUYLHZKLJKOLJKWV3OHDVHEULHIRXUDXGLHQFHDERXW\RXUFRPSDQ\LWV863VDQGKRZLWLVFXUUHQWO\SRVLWLRQHGDVRQHRIWKHPRVWUHOLDEOHFRPSDQLHVLQWKHORJLVWLFVVSDFHH&$5*2:$5(KHOSV$LUOLQHVKDQGOHUVDQGVDOHVDJHQWVWRGLJLWL]HWKHLUFDUJRRSHUDWLRQVXVLQJRXUFORXGEDVHG)50DQDJH(53SODWIRUPDQGVXLWHRI)5$SSV C  š‡’Ž‹ˆ›‹‰‡…Š‘Ž‘‰›‡ƒ†‡”•Š‹’è2XUSODWIRUPLVHDV\WRXVHDQGLVGDVKERDUGGULYHQWKXVVLJQL¿FDQWO\UHGXFLQJWKHWUDLQLQJFRVWVIRURXUXVHUV$LUFDUJRLVDIUDJPHQWHGLQGXVWU\ZLWKODUJHSOD\HUVR\ruHULQJDµVHDPOHVVHQGWRHQGLQWHJUDWLRQDQGYLVLELOLW\DFURVVWKHVXSSO\FKDLQ¶ZLWKDKXJH¿QDQFLDOEDFNLQJWRLQYHVWLQ,76\VWHPVZKLOVWWKHVPDOOHUSOD\HUVUHO\RQOHJDF\WHFKQRORJ\VROXWLRQV:HSOXJWKHJDSEHWZHHQWKHVPDOOHUDQGODUJHUSOD\HUVE\SURYLGLQJDVFDODEOHGLJLWDOSODWIRUPWKDWLVFRVWH\ruHFWLYHIRURXUFXVWRPHUVWRFRPSHWHZLWKWKHODUJHSOD\HUVDQGDUHGRLQJRXUSDUWE\FUHDWLQJDOHYHOSOD\LQJ¿HOGIRUWKHVPDOODQGPHGLXPVL]HDLUFDUJRVHUYLFHSURYLGHUVWRFRPSHWHZLWKVXSHULRUGLJLWDOVROXWLRQVDQGSURFHVVWKXVPRYLQJRXULQGXVWU\WRZDUGVDOHVVIUDJPHQWHGPDUNHW ‡’Ž—‰–Š‡‰ƒ’„‡–™‡‡–Š‡•ƒŽŽ‡”ƒ†Žƒ”‰‡”’Žƒ›‡”•„›’”‘˜‹†‹‰ƒ•…ƒŽƒ„Ž‡†‹‰‹–ƒŽ’Žƒ–ˆ‘”–Šƒ–‹•…‘•–懡‡…–‹˜‡ˆ‘”‘—”…—•–‘‡”•–‘…‘’‡–‡™‹–Š–Š‡Žƒ”‰‡’Žƒ›‡”•ƒ†ƒ”‡†‘‹‰‘—”’ƒ”–„›…”‡ƒ–‹‰ƒŽ‡˜‡Ž’Žƒ›‹‰ԋ‡Ž†ˆ‘”–Š‡•ƒŽŽƒ†‡†‹—敋œ‡ƒ‹”…ƒ”‰‘•‡”˜‹…‡’”‘˜‹†‡”•–‘…‘’‡–‡™‹–Š•—’‡”‹‘”†‹‰‹–ƒŽ•‘Ž—–‹‘•ƒ†’”‘…‡••–Š—•‘˜‹‰‘—”‹†—•–”›–‘™ƒ”†•ƒŽ‡••ˆ”ƒ‰‡–‡†ƒ”‡–ä 2FWREHUZZZWKHFLRZRUOGFRP dZîìD}šu]Œ}u‰v]}(îìîï 6 KHGVRPHOLJKWRQ\RXUR\ruHULQJVDQGKRZWKH\LPSDFWWKHLQGXVWU\DQG\RXUFOLHQWV"$WWKHFRUHRIRXUR\ruHULQJLV)50DQDJH±DFRPSUHKHQVLYHFDUJR(53SODWIRUPIRU$LUOLQHV$LUSRUWV &DUJR+DQGOHUV DQG*HQHUDOVDOHVDJHQWV,W¶VLQWXLWLYHDQGHDV\WRXVHDQGLVLQXVHDWVHYHUDOORFDWLRQVJOREDOO\WRPDQDJHWKHLUFDUJRRSHUDWLRQV)50DQDJHKHOSVRXUFXVWRPHUVWRUHGXFHUHSHDWDFWLYLWLHVDQGLQFUHDVHWKHLUSURGXFWLYLW\2XU)5$SSV±6XLWHRISURGXFWVLVGHVLJQHGWRH[SDQGWKHGLJLWDOR\ruHULQJVRIRXUFXVWRPHUVDQGVHDPOHVVO\LQWHJUDWHVZLWKDQ\FDUJR(53SODWIRUPV6RPHRIWKHNH\SURGXFWVLQWKLVVXLWHLQFOXGH)54XRWH$Q$UWL¿FLDO,QWHOOLJHQFH1/3EDVHGHPDLOSOXJLQWRDXWRPDWHDQGGLJLWDOO\WUDQVIRUPWKHTXRWDWLRQGLDORJXHEHWZHHQ$LUOLQHVDQG)RUZDUGHUV,WH[SHGLWHVTXRWHUHTXHVWVWKXVLPSURYLQJWKHSURGXFWLYLW\RIVDOHVVWD\ruDQGVORZO\FRQYHUWVWKHLQWHUDFWLRQEHWZHHQIRUZDUGHUVDQGDLUOLQHVWRRQOLQHSODWIRUPV)5%RRNLQJ3ODWIRUP$VHOIVHUYLFHRQOLQH6DOHVSODWIRUPIRU)RUZDUGHUVWRFRPSDUHDQGERRNDLUIUHLJKWVKLSPHQWVZLWKRXUFXVWRPHUV:KDWDUHWKHFRUHYDOXHVXSRQZKLFK\RXUFRPSDQ\LVEXLOW":HDUHD¿UPEHOLHYHUWKDWHYHU\EXVLQHVVLVXQLTXHQRPDWWHUKRZVLPLODUWKHLUSURGXFWR\ruHULQJLVFRPSDUHGWRWKHLUFRPSHWLWRUV:HZRUNZLWKRXUFXVWRPHUVWRSURYLGHDVROXWLRQWKDWLVVSHFL¿FIRUWKHLUEXVLQHVVDQGZHWHQGWRSDUWQHUZLWKRXUFXVWRPHUVWRIXQFWLRQDVWKHLUH[WHQGHGWHFKQRORJ\SDUWQHU3OHDVHEULHIXVDERXWWKHIHDWXUHGSHUVRQ¶V V MRXUQH\LQWKHLQGXVWU\DQGKRZWKH\KDYHFRQWULEXWHGWRWKHFRPSDQ\¶VVXFFHVV)HDWXUHG3HUVRQV0U5DPHVK'DUEKD 0U$UXQ6LQJK&RIRXQGHUV±$UXQDQG5DPHVKKDYHVWDUWHGWKHFRPSDQ\ZLWKDYLVLRQWRR\ruHUDFRVWH\ruHFWLYHGLJLWDO(53SODWIRUPDQG)5WRROVSRZHUHGE\$,WRWKH$LUIUHLJKWLQGXVWU\7KH\SOD\DQDFWLYHDQGKDQGVRQUROHLQGH¿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ÀRDWLWZDVWKH$LUORJLVWLFVWKDW¶VNHSWWKHDLUOLQHVRSHUDWLQJDQGLVQRZDWWKHIRUHIURQWRIGLJLWDOL]DWLRQDQG$LUFDU�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ruHUHQFHWRZRUOGWUDGHDQGKDYHDEHOLHILQ\RXUVHOILWLVQRZWKHWLPHWRYHQWXUHLQWRWKLVVSDFHDQGQHYHUORRNEDFN+RZGR\RXHQYLVLRQVFDOLQJ\RXURUJDQL]DWLRQ¶VRSHUDWLRQVDQGR\ruHULQJVLQDQGEH\RQG":LWKLQFUHDVHGIRFXVRQWKHORJLVWLFVVSHFL¿FDOO\LQWKH$LU/RJLVWLFVPDUNHWDVRQHRIWKHSUHIHUUHGGLJLWDOSODWIRUPSURYLGHUVLQWKHLQGXVWU\ZHDUHH[SHFWLQJVLJQL¿FDQWJURZWKLQDQGEH\RQG7RVXSSRUWRXUJURZWKVWUDWHJ\ZHDUHH[SDQGLQJRXUFXVWRPHUVXFFHVVWHDP:HDUHDOVRLQYHVWLQJLQ5 'WRKHOSRXUFXVWRPHUVDYDLOWKHDGYDQFHPHQWVRI$, 0/WRVWUHDPOLQHWKHLURSHUDWLRQDOSURFHVVHVDQGLPSURYHWKHSURGXFWLYLW\RIWKHLUVWD\ru 2FWREHUZZZWKHFLRZRUOGFRP &,2 2FWREHUZZZWKHFLRZRUOGFRP &ŒZÌ]Ì] KÌ]Ì]Ào}‰uvš 5HYROXWLRQL]LQJ([FHSWLRQDOLVPLQ'XEDL\nV5HDO(VWDWH$GYDQFHPHQW 7 KHUH\nVDXQLTXHDQGLQFRPSDUDEOHIHHOLQJWKDWFRPHVZLWKVWHSSLQJDFURVVWKHWKUHVKROGRI\RXUYHU\RZQKRPH,W\nVDVHQVDWLRQWKDWHQFRPSDVVHVFRPIRUWSULGHDQGDSURIRXQGVHQVHRIDFFRPSOLVKPHQW7KHMRXUQH\WRKRPHRZQHUVKLSFDQEHERWKH[KLODUDWLQJDQGFKDOOHQJLQJEXWWKHUHZDUGVLWR\ruHUVDUHLPPHDVXUDEOH)RUPDQ\WKHGUHDPRIRZQLQJDKRPHLVFXOWLYDWHGHDUO\LQOLIH,W\n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nVUHVLOLHQFHDQGGHWHUPLQDWLRQZKLFKLQVWLOOHGLQKLPWKHFRXUDJHWRIDFHFKDOOHQJHVKHDGRQ+HOHDUQHGWKDWIHDUVKRXOGQHYHUKROGRQHEDFNDQGWKDWIDLOXUHVKRXOGEHVHHQDVDVWHSSLQJVWRQHWRVXFFHVV7KLVIHDUOHVVSXUVXLWRIH[FHOOHQFHEHFDPHDFRUQHUVWRQHRI)DUKDG\nVDSSURDFKWREXVLQHVV0U0LUZDLV\nVOHDGHUVKLSSULQFLSOHVKDYHSURIRXQGO\LQÀXHQFHG)DUKDG\nVZRUNVW\OH7KHHPSKDVLVRQSXVKLQJHPSOR\HHVWRH[FHOHPEUDFLQJDJLOLW\LQDQHYHUFKDQJLQJPDUNHWVWUHVVLQJWKHLPSRUWDQFHRILQWHJULW\DQGFRPPLWPHQWWRTXDOLW\KDYHDOOEHFRPHLQWHJUDOWR$]L]L'HYHORSPHQWV\nVXFFHVV$VWKHHOGHVWRIKLVVLEOLQJV)DUKDGDOVRLPELEHGWKHLQYDOXDEOHOHVVRQWKDWJLYLQJXSLVQHYHUDQRSWLRQ+LVIDWKHU\nVEHOLHIWKDWIDLOXUHLVPHUHO\DFDWDO\VWIRUVXFFHVVFRQWLQXHVWRLQVSLUHKLPWRWKLVGD\+HFRQVWDQWO\REVHUYHVKLVIDWKHU\nVDSSURDFKWRQDYLJDWLQJFKDOOHQJLQJVLWXDWLRQVDQGRYHUFRPLQJREVWDFOHVGUDZLQJLQVSLUDWLRQIURPKLVXQ\LHOGLQJGHWHUPLQDWLRQ7RGD\)DUKDGVWDQGVDWWKHKHOPRI$]L]L'HYHORSPHQWVVWHHULQJWKHFRPSDQ\WRZDUGHYHQJUHDWHUKHLJKWV+LVMRXUQH\IURPJOREDOHGXFDWLRQWRZRUNLQJKLVZD\XSZLWKLQWKHIDPLO\EXVLQHVVVKRZFDVHVWKHSRZHURIGHWHUPLQDWLRQUHVLOLHQFHDQGDGHHSUHVSHFWIRURQH\nVKHULWDJH%HORZDUHWKHKLJKOLJKWVRIWKHLQWHUYLHZ3OHDVHEULHIRXUDXGLHQFHDERXW\RXURUJDQL]DWLRQLWV863VDQGKRZLWLVFXUUHQWO\SRVLWLRQHGDVDSURPLQHQWQDPHLQWKHLQGXVWU\$]L]L'HYHORSPHQWVLVDOHDGLQJSULYDWHUHDOHVWDWHGHYHORSHULQ'XEDLIRXQGHGLQ:LWKWHQVRIWKRXVDQGVRIKRPHVVXFFHVVIXOO\GHOLYHUHGWRORFDODQGLQWHUQDWLRQDOLQYHVWRUVDQGHQGXVHUVRIRYHUQDWLRQDOLWLHVZHSULGHRXUVHOYHVRQRXUH[WHQVLYHSRUWIROLRRIPRGHUQOX[XU\GHYHORSPHQWVDFURVV'XEDL\nVPRVWVRXJKWDIWHUUHVLGHQWLDODQGFRPPHUFLDOGHVWLQDWLRQVRXUFRQVWUXFWLRQGULYHQDSSURDFKDQGRXUFRPPLWPHQWWRWUDQVSDUHQF\DQGFXVWRPHUFHQWULFLW\ 2FWREHUZZZWKHFLRZRUOGFRP dZîìD}šu]Œ}u‰v]}(îìîï $]L]L\nVUHVLGHQWLDODQGFRPPHUFLDOSURSHUWLHVDUHLQYHVWRUIULHQGO\FDWHULQJWRDOOOLIHVW\OHV:HPDNHLWRXULQWHUQDWLRQDOPLVVLRQWRGHYHORSOLIHVW\OHVDQGHQULFKWKHOLYHVRIUHVLGHQWVZLWKDIRFXVRQFDWDO\]LQJWKHYLVLRQDQGGHYHORSPHQWRIWKHPDUNHWVLQZKLFKZHRSHUDWH:HDOVRSODFHDVWURQJHPSKDVLVRQHQVXULQJWKDWRXUSURMHFWVDUHLQVWUDWHJLFDOO\ORFDWHGHDVLO\DFFHVVLEOHDQGJURZWKLQFOLQHGFRPPXQLWLHVKDYHZRUOGFODVVEXLOGTXDOLW\DUHGHOLYHUHGZLWKLQVSHFL¿FWLPHOLQHVKDYHZHOOWKRXJKWWKURXJKOD\RXWVDUHGLVWLQJXLVKHGE\PRGHUQDHVWKHWLFDQGXQLTXHGHVLJQVKDYHDZLGHDQGFRPSUHKHQVLYHUDQJHRIOLIHVW\OHHQULFKLQJDPHQLWLHVIRVWHUDWUXHVHQVHRIEHORQJLQJWKURXJKVRFLDODQGOLYDEOHVSDFHVDQGR\ruHUFRQYHQLHQFHWKURXJKYDULRXVEXVLQHVVOHLVXUHDQGUHWDLOKXEVLQWKHLUYLFLQLW\7KHVHDVSHFWVDUHNH\WRHQVXULQJFXVWRPHUVDWLVIDFWLRQDQGGHOLYHULQJVRPHRIWKHPRVWRXWVWDQGLQJ52,VKHOSLQJXVHOHYDWHOLIHVW\OHVDQGHQULFKOLYHV6KHGVRPHOLJKWRQ\RXUR\ruHULQJVDQGKRZWKH\LPSDFWWKHLQGXVWU\DVZHOODV\RXUFOLHQWV$]L]LSULGHVLWVHOIRQR\ruHULQJWKHULJKWSURSHUW\WRVXLWHYHU\LQGLYLGXDOFOLHQW\nVQHHGVDQGUHTXLUHPHQWV3URYLGLQJH[SHUWSURIHVVLRQDODGYLFHZLWKDKLJKO\NQRZOHGJHDEOHDQGTXDOL¿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nEHVWLQWHUHVWVDWWKHIRUHIURQWRIHYHU\GHFLVLRQWKDWZHPDNHHQVXUHVWKDWHDFKSURSHUW\ZHKDQGRYHUUHSUHVHQWVDSK\VLFDOVWUXFWXUHDQGDQHPRWLRQDODQGDVSLUDWLRQDOLQYHVWPHQWXOWLPDWHO\HQULFKLQJWKHLUOLYHVDQGGHOLYHULQJODVWLQJYDOXH%HLQJDQH[SHULHQFHGOHDGHUVKDUH\RXURSLQLRQRQKRZWKHDGRSWLRQRIPRGHUQWHFKQRORJLHVKDVLPSDFWHGWKHVHFWRU+RZKDV\RXURUJDQL]DWLRQLQFRUSRUDWHGVXFKWHFKQRORJLHVLQWRLWVGDLO\RSHUDWLRQV",QDFRPSHWLWLYHPDUNHWOLNH'XEDLXWLOL]LQJPRGHUQWHFKQRORJ\LVFUXFLDOWRVHWWLQJRXUR\ruHULQJVDSDUWIURPWKRVHRIRWKHUGHYHORSHUV:H\nYHIRUPHGVWUDWHJLFSDUWQHUVKLSVZLWKWRSFRQWUDFWRUVDQGVXSSOLHUVZKRVKDUHRXUYLVLRQ:HHQKDQFHGRXURSHUDWLRQDOH\rvFLHQF\E\LPSOHPHQWLQJVHYHUDOLQQRYDWLYHWHFK,7VROXWLRQV:HDOVRUDLVHGWKHOHYHORIFRQYHQLHQFHWUDQVSDUHQF\DQGRYHUDOOVHUYLFHTXDOLW\IRURXUVWDNHKROGHUVZLWKRXULQYHVWRUVDQGHQGXVHUVEHQH¿WLQJWKHPRVW:HDOVRGHSOR\HGVHYHUDOQHZFXWWLQJHGJHWRROVZLWKPRUHWRIROORZWKDWDUHFXUUHQWO\LQGHYHORSPHQW7KHXVHRIGLJLWDOWHFKQRORJLHVLQFRQVWUXFWLRQKDVDOUHDG\GUDVWLFDOO\WUDQVIRUPHGWKHLQGXVWU\LQUHFHQW\HDUVDQGLVH[SHFWHGWRFRQWLQXHWRHYROYHDQGJURZ'XEDL\nVOHDGHUVKLSFRQVLVWHQWO\H[HPSOL¿HVWKHLPSRUWDQFHRIVXVWDLQDEOHLQQRYDWLRQLQRXUUDSLGO\HYROYLQJODQGVFDSH$W$]L]LZHDUHFRPPLWWHGWRHPEUDFLQJWKHODWHVWWHFKQRORJLHVDQGWUHQGVDQGFRQWLQXRXVO\LQQRYDWLQJWRPDLQWDLQRXUVWDWXVDVRQHRIWKHOHDGLQJGHYHORSHUVLQWKH8$(:KDWZRXOGEH\RXUDGYLFHWREXGGLQJHQWUHSUHQHXUVZKRDVSLUHWRYHQWXUHLQWRWKHLQGXVWU\",QVWLOODFXVWRPHU¿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¿FLDOWRWU\PDNHPLVWDNHVDQGOHDUQIURPWKHPWKDQWRQHYHUWU\+RZGR\RXHQYLVLRQVFDOLQJ\RXURUJDQL]DWLRQ\nVIXQFWLRQVDQGR\ruHULQJVLQDQGEH\RQG,QRXUSODQLVWRGHOLYHUDSSUR[LPDWHO\XQLWVDFURVVSURMHFWVLQ'XEDLVSUHDGDFURVVWKH5LYLHUD\nV¿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nVSRVLWLRQLQWKHPDUNHW$]L]L'HYHORSPHQWVKDVUHFHLYHGVHYHUDOSUHVWLJLRXVDZDUGVIURPGL\ruHUHQWORFDODQGJOREDOHQWLWLHVIRULWVPDVWHU\LQGHYHORSLQJSURMHFWVZHOOYHUVHGWKRXJKWOHDGHUVKLSDQGLPSHFFDEOHVWUDWHJLHV2QHRIRXUPRVWSURPLQHQWDFFRODGHVZDVEHVWRZHGRQXVE\+LV+LJKQHVV6KHLNK+DPGDQELQ0RKDPPHGELQ5DVKLG$O0DNWRXP&URZQ3ULQFHRI'XEDLDQG&KDLUPDQRIWKH([HFXWLYH&RXQFLORI'XEDLIRURXUQXPHURXVFRQWULEXWLRQVWRDQGVXSSRUWRIWKHUHQRZQHG'XEDL:RUOG&XSDQRWKHURQHZHDUHSURXGRIZDVIURPWKH'XEDL/DQG'HSDUWPHQW\nV5HJLVWUDWLRQDQG5HDO(VWDWH6HUYLFHV6HFWRUIRURXULPSRUWDQWUROHLQKHOSLQJDGYDQFHWKHHPLUDWH\nVUHDOHVWDWHLQGXVWU\2WKHUDFFRODGHVLQFOXGH'HYHORSHURIWKHHDUIURP$UDELDQ%XVLQHVV(QWHUSULVH$JLOLW\$ZDUGV6PDUW%XLOW(QYLURQPHQW$ZDUGVDQG'HVLJQ0LGGOH(DVWWKUHHFRQVHFXWLYH5HDO(VWDWH'HYHORSHURIWKHHDUDWWKH&RQVWUXFWLRQ,QQRYDWLRQ$ZDUGVDQG/HDGLQJ5HVLGHQWLDODQG&RPPHUFLDO3URSHUWLHV'HYHORSHU8$(/HDGLQJ5HDO(VWDWHDQG/LIHVW\OH'HYHORSHU8$(0RVW&XVWRPHU&HQWULF5HDO(VWDWH)LUP8$(DQG0RVW7UDQVSDUHQW3ULYDWH'HYHORSHU8$(DWWKH:RUOG%XVLQHVV2XWORRN$ZDUGVHWDERYHDOOWKHPRVWSURIRXQGPRWLYDWLRQIRUXVLVZLWQHVVLQJWKHMR\RQRXUFXVWRPHUV\nIDFHVGXULQJKDQGRYHUGD\V5HFRJQL]LQJWKDWRXUFXVWRPHUVDUHQRWMXVWVDWLV¿HGEXWWUXO\GHOLJKWHGZLWKWKHLULQYHVWPHQWDQGXQGHUVWDQGLQJRXUSLYRWDOUROHLQVFXOSWLQJWKHLUIXWXUHLJQLWHVLPPHQVHSULGHDQGLQVSLUDWLRQZLWKLQPH:KHQFXVWRPHUVSXUFKDVHXQLWVIURP$]L]L,UHFRJQL]HWKDWWKH\VHHNDSODFHWRFDOOKRPHDQGDSURPLVLQJLQYHVWPHQWRSSRUWXQLW\ 2FWREHUZZZWKHFLRZRUOGFRP 2FWREHUZZZWKHFLRZRUOGFRP DYH\RXHYHUWKRXJKWDERXWZKDWUHDOO\PDNHV\RXKDSS\DQGHQJDJHGDWZRUN",VLWWKHIDQF\R\rvFHVSDFHJHQHURXVEHQH¿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nZHOOEHLQJDQGKDSSLQHVVSD\VR\ru:KHQSHRSOHIHHOVDWLV¿HGDQGHQJDJHGDWZRUNSURGXFWLYLW\DQGOR\DOW\LQFUHDVH6RPHZD\VFRPSDQLHVFXOWLYDWHDQXSEHDWZRUNIRUFH,QFOXGH2\ruHULQJFRPSUHKHQVLYHKHDOWKFDUHDQGLQVXUDQFHEHQH¿WV.QRZLQJWKHLUEDVLFQHHGVDUHFRYHUHGUHOLHYHVVWUHVVDQGVXSSRUWVZRUNOLIHEDODQFH3URYLGLQJPHQWDOKHDOWKUHVRXUFHV)URPFRXQVHOLQJWRPLQGIXOQHVVDSSVJLYLQJVWD\ruWRROVWRLPSURYHWKHLUSV\FKRORJLFDODQGHPRWLRQDOKHDOWKOHDGVWRJUHDWHUFUHDWLYLW\UHVLOLHQFHDQGFROODERUDWLRQ3URPRWLQJOHDUQLQJDQGJURZWK6XSSO\LQJRSSRUWXQLWLHVIRUFRQWLQXLQJHGXFDWLRQPHQWRUVKLSDQGVNLOOVGHYHORSPHQWPDNHVHPSOR\HHVIHHOYDOXHGDQGFKDOOHQJHVWKHPLQIXO¿OOLQJZD\V)RVWHULQJFRPPXQLW\2UJDQL]LQJWHDPEXLOGLQJHYHQWVHPSOR\HHUHVRXUFHJURXSVDQGVRFLDOJDWKHULQJVKHOSVSHRSOHFRQQHFWDFURVVWKHRUJDQL]DWLRQ&ORVHNQLWWHDPVDUHPRUHPRWLYDWHGDQGH\rvFLHQW5HFRJQL]LQJFRQWULEXWLRQV3UDLVLQJVWD\ruDFKLHYHPHQWVZKHWKHUSXEOLFO\RUSULYDWHO\VKRZV\RXQRWLFHDQGDSSUHFLDWHWKHLUH\ruRUWV6LPSOHJHVWXUHVOLNHDWKDQN\RXFDUGRUVPDOOJLIWFDQJRDORQJZD\*LYLQJEDFN(QFRXUDJLQJYROXQWHHUZRUNDQGPDWFKLQJFKDULWDEOHGRQDWLRQVLVDPHDQLQJIXOZD\IRUFRPSDQLHVDQGHPSOR\HHVWRPDNHDSRVLWLYHLPSDFWWRJHWKHU3HRSOHDUHSURXGWRZRUNIRUVRFLDOO\UHVSRQVLEOHRUJDQL]DWLRQV$VNLQJIRUIHHGEDFN&RQGXFWLQJUHJXODUVXUYH\VDQGIRFXVJURXSVRQHPSOR\HHVDWLVIDFWLRQSURYLGHVLQVLJKWVRQZKDW\nVZRUNLQJDQGZKHUHLPSURYHPHQWVFDQEHPDGH$FWLQJRQWKLVLQSXWGHPRQVWUDWHVWKDW\RXYDOXHSHRSOH\nVSHUVSHFWLYHVDQGH[SHULHQFHV:KHQEXVLQHVVHVLQYHVWLQWKHWRWDOZHOOEHLQJRIWKHLUZRUNHUVWKH\WKULYH)XO¿OOHGHPSOR\HHVDUHIXOO\IRFXVHGLQQRYDWLYHDQGFRPPLWWHGWRFRPSDQ\VXFFHVV&UHDWLQJDSRVLWLYHHQYLURQPHQWZKHUHSHRSOHIHHOKHDUGVXSSRUWHGFKDOOHQJHGDQGFRQQHFWHGLVKRZVPDUWRUJDQL]DWLRQVUHWDLQWRSWDOHQW)RVWHULQJD3RVLWLYHDQG6XSSRUWLYH&RPSDQ\&XOWXUH7RFXOWLYDWHDKDSS\HQJDJHGZRUNIRUFHFRPSDQLHVQHHGWRIRVWHUDSRVLWLYHFXOWXUHZKHUHSHRSOHIHHOVXSSRUWHGDQGYDOXHG3URYLGLQJ0HDQLQJIXO:RUN*LYLQJHPSOR\HHVZRUNWKDWFKDOOHQJHVDQGIXO¿OOVWKHPLVNH\:KHQSHRSOHIHHOOLNHWKHLUZRUNKDVSXUSRVHDQGLPSDFWWKH\WHQGWREHPRUHPRWLYDWHGDQGFRPPLWWHGdZW}‰o&š}Œ 2FWREHUZZZWKHFLRZRUOGFRP 2\ruHURSSRUWXQLWLHVIRUJURZWKE\HQFRXUDJLQJFROODERUDWLRQDFURVVWHDPVDQGSXVKLQJSHRSOHRXWVLGHWKHLUFRPIRUW]RQHVZLWKVWUHWFKDVVLJQPHQWV%XLOGLQJ6WURQJ5HODWLRQVKLSV3URPRWHFRRSHUDWLRQRYHUFRPSHWLWLRQ&UHDWHHQYLURQPHQWVZKHUHSHRSOHFDQFRQQHFWWKURXJKWHDPEXLOGLQJHYHQWVPHQWRUVKLSSURJUDPVDQGRSHQR\rvFHVSDFHV6WURQJVRFLDOERQGVDPRQJFROOHDJXHVOHDGWRKLJKHUMREVDWLVIDFWLRQSURGXFWLYLW\DQGOR\DOW\5HFRJQL]LQJ*RRG:RUN1RWKLQJLVPRUHGHPRWLYDWLQJWKDQIHHOLQJXQDSSUHFLDWHG(VWDEOLVKDFXOWXUHZKHUHSHRSOHUHJXODUO\JLYHHDFKRWKHUVKRXWRXWVKLJK¿YHVDQGSDWVRQWKHEDFN:KHQHPSOR\HHVJRDERYHDQGEH\RQGUHZDUGWKHPZLWKERQXVHVJLIWFDUGVRUH[WUDSDLGWLPHR\ru3XEOLFO\SUDLVHWKHLUDFKLHYHPHQWVDQGWKHYDOXHWKH\DGG0DLQWDLQLQJ2SHQ&RPPXQLFDWLRQ$QRSHQGRRUSROLF\DQGWUDQVSDUHQWFRPPXQLFDWLRQDUHYLWDO/HDGHUVVKRXOGVKDUHFRPSDQ\QHZVZLQVORVVHVDQGIXWXUHSODQVZLWKVWD\ru7KH\VKRXOGDOVRVROLFLWIHHGEDFNDQGLQSXWWKURXJKVXUYH\VWRZQKDOOVDQGRSHQIRUXPV:KHQSHRSOHIHHOKHDUGDQGLQWKHNQRZWKH\WHQGWRKDYHPRUHWUXVWLQWKHLURUJDQL]DWLRQDQGOHDGHUVKLS)RVWHULQJWKHULJKWFRPSDQ\FXOWXUHDQGSXWWLQJSHRSOH¿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ruHUWXLWLRQUHLPEXUVHPHQWVRUVXEVLGLHVIRUZRUNUHODWHGFRXUVHVRUGHJUHHSURJUDPV7DNHDGYDQWDJHRIWKHVHEHQH¿WVWRVWUHQJWKHQ\RXUNQRZOHGJHDQGEHFRPHHOLJLEOHIRUPRUHDGYDQFHGSRVLWLRQV1HWZRUNDQGEXLOGPHQWRUVKLSV&RQQHFWLQJZLWKOHDGHUVLQ\RXURUJDQL]DWLRQRULQGXVWU\FDQOHDGWRQHZRSHQLQJVDQGUROHV7U\WR¿QGPHQWRUVZKRFDQFRDFK\RXDQGKHOS\RXGHYHORSSURIHVVLRQDOO\7KHLUJXLGDQFHDQGVXSSRUWFDQEHLQVWUXPHQWDOLQUHDFKLQJ\RXUFDUHHUJRDOV'LVFXVVFDUHHUSDWKZD\V7DONWR\RXUPDQDJHUDERXWSRVVLEOHFDUHHUDGYDQFHPHQWRSSRUWXQLWLHVZLWKLQWKHRUJDQL]DWLRQ([SUHVV\RXUGHVLUHIRUJURZWKDQGDVNZKDW\RXQHHGWRGRWREHFRQVLGHUHGIRUPRUHUHVSRQVLELOLW\&RPHSUHSDUHGZLWKVSHFL¿FUROHV\RX\nUHLQWHUHVWHGLQ.HHS\RXUVNLOOVDQGNQRZOHGJHXSWRGDWH7DNHLQLWLDWLYHWRNHHS\RXUVNLOOVDQGLQGXVWU\NQRZOHGJHFXUUHQWWKURXJKUHDGLQJRQOLQHFRXUVHVZHELQDUVFRQIHUHQFHVDQGZRUNVKRSV7KHPRUH\RXVWUHQJWKHQ\RXUDELOLWLHVWKHPRUHYDOXDEOH\RXEHFRPHWR\RXUFRPSDQ\DQGWKHPRUHRSSRUWXQLWLHVZLOORSHQXSWR\RX6WD\LQJHQJDJHGDWZRUNLVDWZRZD\VWUHHW:KLOHFRPSDQLHVVKRXOGSURYLGHFKDQFHVIRUGHYHORSPHQWHPSOR\HHVDOVRQHHGWRDFWLYHO\SXUVXHQHZFKDOOHQJHVDQGFRQWLQXRXVOHDUQLQJ%\WDNLQJDGYDQWDJHRIDOORSSRUWXQLWLHVIRUJURZWK\RX\nOOQRWRQO\EHFRPHDKDSSLHUDQGPRUHVDWLV¿HGHPSOR\HHEXWDOVRDPRUHDWWUDFWLYHFDQGLGDWHIRUDGYDQFHPHQW2YHUDOOWKDW\nVDZLQZLQIRU\RXDQG\RXURUJDQL]DWLRQ&RQFOXVLRQ&UHDWLQJDKDSS\DQGHQJDJHGZRUNIRUFHLVQRWURFNHWVFLHQFHEXWLWGRHVUHTXLUHFRPSDQLHVWRLQYHVWLQWKHKXPDQIDFWRU7DNHFDUHRI\RXUSHRSOHJLYHWKHPRSSRUWXQLWLHVWRJURZUHFRJQL]HWKHLUH\ruRUWVDQGPDNHWKHPIHHOOLNHWKH\DUHDPHDQLQJIXOSDUWRIWKHRUJDQL]DWLRQ:KHQHPSOR\HHVIHHOJRRGDERXWWKHZRUNWKH\GRDQGWKHFRPSDQ\WKH\GRLWIRUWKDWSRVLWLYHHQHUJ\IXHOVLQQRYDWLRQSURGXFWLYLW\DQGEXVLQHVVVXFFHVV7KHFRPSDQLHVWKDWJHWWKLVDUHWKHRQHVZLWKSDVVLRQDWHFUHDWLYHOR\DODQGKLJKO\PRWLYDWHGWHDPV$QGWKDWP\IULHQGVLVDFRPSHWLWLYHDGYDQWDJHQRDPRXQWRIWHFKQRORJ\RUSURFHVVRSWLPL]DWLRQFDQUHSODFH 2FWREHUZZZWKHFLRZRUOGFRP &,2 2FWREHUZZZWKHFLRZRUOGFRP QDZRUOGVDWXUDWHGZLWKPLVLQIRUPDWLRQZKHUHUH¿QLQJWKURXJKWKHGDLO\FRQWHQWFDQIHHOOLNHQDYLJDWLQJDODE\ULQWK¿QGLQJWKHULJKWLGHDVDQGVWRULHVKDVEHFRPHPRUHFUXFLDOWKDQHYHU7KHSRZHURIWUDQVIRUPDWLYHLGHDVOLHVLQWKHLUDELOLW\WRVKDSHRXUZRUOGIRUWKHEHWWHU(QWHU,GHD6SLHVZLWK/\QQ:RRG)RXQGHUDQG&KLHI,GHD6S\WKHEHDFRQRIOLJKWLQWKHLQIRUPDWLRQRYHUORDG7KLVRSHQLQQRYDWLRQSODWIRUPLVGHGLFDWHGWRFXUDWLQJFOHYHULGHDVGLVFRYHULHVDQGRULJLQDOWKLQNHUVPDNLQJLWH\ruRUWOHVVWRGLVFRYHUDQGVKDUHWKHJRRGWKDWH[LVWVLQRXUPLGVW7KHSUHPLVHRI,GHD6SLHVLVUHIUHVKLQJO\VLPSOHFRQFLVHSRVWVRIZRUGVRUOHVVWKDWSDFNDSXQFK(DFKFDUHIXOO\FUDIWHGVWRU\DLPVWRH[SDQGWKHPLQGLJQLWHFXULRVLW\DQGXQOHDVKWKHLPDJLQDWLRQRILWVUHDGHUV%\GLVWLOOLQJFRPSOH[FRQFHSWVLQWRELWHVL]HGLQVLJKWV,GHD6SLHVR\ruHUVDJDWHZD\WRDZRUOGRILQVSLUDWLRQIRUDOOZKRVHHNLW%XWLWLVPRUHWKDQMXVWDFROOHFWLRQRILQWULJXLQJLGHDV,W¶VDFDWDO\VWIRUDFWLRQDQGFKDQJH7KHSODWIRUPVHUYHVDVDPHHWLQJJURXQGIRUSHRSOHLQGXVWULHVDQGJRYHUQPHQWVWRFRPHWRJHWKHUDQGVKDUHZKDW¶VJRRGIRUHYHU\ERG\,W¶VDVSDFHZKHUHFROOHFWLYHZLVGRPFRQYHUJHVWRLQVSLUHPHDQLQJIXODFWLRQDQGJXLGHFKRLFHVWKDWSURSHOKXPDQLW\IRUZDUGLQWKHULJKWGLUHFWLRQ)URPJURXQGEUHDNLQJLQYHQWLRQVWRLQQRYDWLYHVRFLDOLQLWLDWLYHV,GHD6SLHVVKRZFDVHVDGLYHUVHUDQJHRILGHDVWKDWKDYHWKHSRWHQWLDOWRVKDSHRXUIXWXUH 2FWREHU ZZZWKHFLRZRUOGFRP  dZîìD}šu]Œ}u‰v]}(îìîï ,GHD 6SLHV'LVFRYHULQJ6KDUSLQJDQG(PSRZHULQJ3RVLWLYH&KDQJHLQD:RUOG2YHUÁRZLQJZLWK0LVLQIRUPDWLRQ :KHWKHULW¶VDGYDQFHPHQWVLQWHFKQRORJ\VXVWDLQDEOHSUDFWLFHVKHDOWKFDUHEUHDNWKURXJKVRUFUHDWLYHVROXWLRQVWRJOREDOFKDOOHQJHV,GHD6SLHVVKLQHVDVSRWOLJKWRQWKHEULOOLDQWPLQGVDQGLQLWLDWLYHVWKDWDUHGULYLQJSRVLWLYHFKDQJH:LWKHDFKYLVLWWR,GHD6SLHVUHDGHUVDUHWUDQVSRUWHGLQWRDZRUOGRISRVVLELOLW\7KH\HQFRXQWHUVWRULHVWKDWFKDOOHQJHSUHFRQFHLYHGQRWLRQVVSDUNFRQYHUVDWLRQVDQGSDYHWKHZD\IRULQQRYDWLRQ7KHSODWIRUPKDVEHFRPHDWUXVWHGUHVRXUFHIRUWKRVHVHHNLQJDIUHVKSHUVSHFWLYHDQLQMHFWLRQRILQVSLUDWLRQDQGDUHD\rvUPDWLRQWKDWJRRGLGHDVFDQPDNHDGL\ruHUHQFH,QDWLPHZKHQQRLVHFDQGURZQRXWEULOOLDQFH,GHD6SLHVVWDQGVWDOODVDJXLGLQJOLJKW,WQDYLJDWHVWKURXJKWKHFOXWWHUGLVWLOOLQJWKHHVVHQFHRILPSDFWIXOLGHDVDQGEULQJLQJWKHPWRWKHIRUHIURQW%\VKLQLQJDVSRWOLJKWRQWKHH[WUDRUGLQDU\HQGHDYRUVRILQGLYLGXDOVDQGRUJDQL]DWLRQV,GHD6SLHVLQYLWHVXVDOOWREHDSDUWRIWKHFROOHFWLYHH\ruRUWWRFUHDWHDEHWWHUZRUOG/HWXVGHOYHGHHSHULQWRWKHLQVLJKWVRI,GHD6SLHV6KHGVRPHOLJKWRQ\RXUR\ruHULQJVDQGKRZWKH\LPSDFWWKHLQGXVWU\DVZHOODV\RXUFOLHQWV,GHD6SLHVLVVKDULQJPRUHWKDQLGHDVRQWRSLFVUDQJLQJIURP$,WRZHOOEHLQJ7KH\FDQEHLGHDVKDSSHQLQJQRZLGHDVEHLQJGHYHORSHGDGL\ruHUHQWZD\WRWKLQNDERXWVRPHWKLQJRUDQHZFRQFHSW7KHLGHDVR\ruHUVROXWLRQVWRSUREOHPV(YHU\LQQRYDWLRQLVEDVHGRQDQLGHD:KHQHYHU\RXVHHVRPHWKLQJDQGWKLQN³7KDW¶VFOHYHU´LWVKRXOGEHRQ,GHD6SLHV3HRSOHZKRUHJLVWHUFDQVXEPLWLGHDVFRPPHQWRQLGHDVDOUHDG\SRVWHGDQGUHFHLYH,GHD6SLHV:HHNO\IHDWXULQJWKHWHQPRVWSRSXODULGHDV3OHDVHEULHIXVDERXWWKHIHDWXUHGSHUVRQ¶V V MRXUQH\LQWKHLQGXVWU\DQGKRZWKH\KDYHFRQWULEXWHGWRWKHFRPSDQ\¶VVXFFHVV/\QQ:RRGFRIRXQGHG,GHD6SLHVLQ+HULQWHUHVWLQLQQRYDWLRQVWDUWHGHDUO\LQKHUFDUHHU6KHZDVRQWKHVWDUWXSWHDPIRU$PHULFDQ([SUHVV&DUGVLQ$XVWUDOLDDQG1HZ=HDODQGDVZHOODVODWHULQ1RUWKHDVW$VLD6KHZDVDOVRSDUWRIWKHWHDPVWKDWHVWDEOLVKHGWKH¿UVWLQWHUQDWLRQDOSURSHUW\IXQGLQ$XVWUDOLDRQHRIWKH¿UVWZKROHVDOHSURSHUW\IXQGVDQGDIXQGPDQDJHPHQWJURXS 2FWREHUZZZWKHFLRZRUOGFRP   /\QQKDVVHUYHGRQPDQ\ERDUGVLQFOXGLQJDVFKDLU6KHZDVRQHRIWKH¿UVWWKUHHZRPHQLQ$XVWUDOLDWREHRQWKHERDUGRIDOLVWHGRUJDQL]DWLRQDQGRQHRIWKH¿UVWWRDGRSWDSRUWIROLRFDUHHUDVDFRQVXOWDQWERDUGPHPEHUPHQWRUDQGHQWUHSUHQHXU%RDUGVVKHKDVVHUYHGRQLQFOXGHWKH,)56)RXQGDWLRQ)LQDQFLDO5HSRUWLQJ&RXQFLO)RUHLJQ,QYHVWPHQW5HYLHZ%RDUG+6%&%DQN$XVWUDOLD0DFTXDULH*RRGPDQ*URXS6FKURGHUV$XVWUDOLD06$XVWUDOLD6DYHWKH&KLOGUHQ$XVWUDOLDDQG:RPHQ¶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¶VDJURZLQJLQGXVWU\$IHZ\HDUVDJR/\QQVDZDK\GURJHQIXHOHGFDUDWD%0:VKRZURRPLQ*HUPDQ\DQGSRVWHGWKHLGHDRQ,GHD6SLHV$WWKDWWLPHQRRQHWKRXJKWFDUVFRXOGEHVDIHO\SRZHUHGZLWKK\GURJHQ1RZLW¶VDUHFRJQL]HGIXHO2SSRUWXQLWLHVDUHDULVLQJTXLFNO\IRUPDQ\SURGXFWVDQGVHUYLFHVDVDUHVXOWRIWKHFXUUHQWGLJLWDOUHYROXWLRQ$VSURGXFWVDQGVHUYLFHVEHFRPHPRUHFRPSOH[FROODERUDWLRQLVDOVREHFRPLQJPRUHSRSXODU7KHUHLVDWUHQGIURPFRPSHWLWLRQWRFRRSHUDWLRQWRFROODERUDWLRQDQGWKLVPHDQVLW¶VPRUHSRVVLEOHWRGHYHORSLGHDVLQYROYLQJRWKHUSHRSOHDQGRUJDQL]DWLRQV6NLOOVLQZRUNLQJZLWKWHDPVDUHWKHUHIRUHEHFRPLQJPRUHYDOXDEOHDQGLW¶VYHU\KHOSIXOLI\RXKDYHGHYHORSHGWKHVHVNLOOV+RZGR\RXHQYLVLRQVFDOLQJ\RXURUJDQL]DWLRQ¶VIXQFWLRQVDQGR\ruHULQJVLQDQGEH\RQG":HKDYHDOUHDG\VFDOHGXSLQGHYHORSLQJRXUSODWIRUPDQGZHKDYHVXEVFULEHGIRULQFUHDVHGVSDFHZLWKRXUKRVWLQJSURYLGHU:H¶YHDOVRGHYHORSHGDZKLWHODEHOYHUVLRQRI,GHD6SLHVFDOOHG8S5LVLQJWKDWLVEHLQJXVHGWRVXSSRUWLQQRYDWLYHVWXGHQWVLQ$XVWUDOLDQVFKRROVVRWKH\FDQGHYHORSWKHLULGHDVEDVHGRQLQSXWIURPEXVLQHVVDQGLQGXVWU\ 2FWREHUZZZWKHFLRZRUOGFRP 2XUQH[WFKDOOHQJHLVWRLGHQWLI\DQRUJDQL]DWLRQZLWKZKLFKZHFDQJURZ:HZRXOGOLNHWRSDUWQHUZLWKDQRUJDQL]DWLRQWKDWR\ruHUVSURGXFWVRUVHUYLFHVWKDWGRJRRGSUDFWLFHVFROODERUDWLRQDQGKDVDQLQQRYDWLYHFXOWXUH3OHDVHJLYHXVDIHZWHVWLPRQLDOVRI\RXUFOLHQWVFXVWRPHUVDQGDOLVWRIDZDUGVUHFRJQLWLRQVWKDWDFFXUDWHO\KLJKOLJKW\RXUFRPSDQ\¶VSRVLWLRQLQWKHPDUNHW:KHQZHODXQFKHG,GHD6SLHVLQZHZRQDQDZDUGDVRQHRIWKHWRSFRROHVWFRPSDQLHVLQ$XVWUDOLD%HORZDUHDIHZWHVWLPRQLDOV‡'DYLG7KRGH\$2&KDLUPDQRI;HUR7\URDQGWKH*UHDW%DUULHU5HHI)RXQGDWLRQ*UHDWLGHDVUHVHDUFKDQGLQQRYDWLRQFDQFRPHIURPDQ\RQHVRRIWHQWKHEHVWLGHDVGRQRWKDYHDYRLFH,GHD6SLHVSURYLGHVDSODWIRUPIRUSHRSOHWRVKDUHLGHDVWKDWFUHDWHDEHWWHUZRUOG‡0DULD0DF1DPDUD'LUHFWRURI*RYHUQPHQW5HODWLRQVDQG,QQRYDWLRQ6WUDWHJ\.\QGU\O,GHD6SLHVLVDFXUDWHGUHSRVLWRU\RIJRRGLGHDVWKDWDUHDYDOXDEOHUHVRXUFHIRUSHRSOHZKRZDQWWRVROYHQHZSUREOHPVRUVROYHROGSUREOHPVLQQHZZD\V‡5LFKDUG+DLQVZRUWK)RXQGHU8S5LVLQJ(QWUHSUHQHXUVKLS&DUHHU3DWKZD\VIRU+LJK6FKRRO6WXGHQWV,GHD6SLHVLVDQRSHQDQGSRVLWLYHSODFHWRVKDUHLGHDV(DV\WRUHDGDQGIROORZDQGZLWKDKLJKOHYHORI8;‡*LOOLDQ&RUEDQ&R)RXQGHU&RUEDQ %ODLU,QQRYDWLRQVWDUWVZLWKLGHDV,GHDVDUHRQO\LGHDVWKH\QHHGWREHVKDUHGH[SORUHGDQGLQWHUURJDWHG‡0DUN6WDQEULGJH3DUWQHU$VKXUVW,GHD6SLHVLVDGLJLWDOOLEUDU\RISRVLWLYHLGHDV,W¶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¶VIUHLJKWPDUNHWLVXOWUDFRPSHWLWLYHDQGµVXUYLYDORIWKH¿WWHVW¶LVWKHUHVRXQGLQJPDQWUD:LWKFRQVXPHUVDOORYHUWKHZRUOGGHPDQGLQJJUHDWHUYDULHWLHVLQSURGXFWVDWWKHFKHDSHVWFRVWVSRVVLEOHFRPSDQLHVDUHVFUDPEOLQJWREROVWHUWKHLUVXSSO\FKDLQVDQGIXO¿OOWKHµDOOLPSRUWDQW¶FXVWRPHU0HDQZKLOHGULYHUVKRUWDJHVFDSDFLW\LPEDODQFHVJRYHUQPHQWUHJXODWLRQVDQGQRZWKHRQJRLQJSDQGHPLFDUHDGGLQJSUHVVXUHWRDOUHDG\VWUDLQHGVXSSO\FKDLQVDQGFRQWLQXHVWRLPSDFWWUDQVSRUWDWLRQDOFRVWV7KLVLVZK\PDQ\RUJDQL]DWLRQVDUHWXUQLQJWR0DQDJHG7UDQVSRUWDWLRQ6HUYLFHVSURYLGHUVWRKHOSDGGUHVVWKHVHFKDOOHQJHV8QIRUWXQDWHO\YHU\RIWHQVXESDUSURYLGHUVDUHSUHYDOHQWLQWKHPDUNHWDQGRSHUDWHZLWKR\ru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¶VLQQRYDWLYHDQGSURSULHWDU\0DQDJHG7UDQVSRUWDWLRQ6RIWZDUH 076 FRQWLQXHVWRRXWSDFHWKHLUFRPSHWLWRUV%ULQJLQJ&ODULW\WR&ORXG\9LVLELOLW\2ULJLQDOO\ODXQFKHGDVDIXOO\DXWRPDWHGRQOLQHIUHLJKWPDUNHWSODFHFDOOHGµORJLVWLFVTXRWHFRPLQDIWHUH[SRQHQWLDOXVHUJURZWKWKHZHEVLWHZDVVROGWRDJURXSRI  \n!+"/."/ ”—‡‘‰‹•–‹…•‘Ž—–‹‘”‘˜‹†‡”ƒ–‡”‹‰–‘\nŽ‘„ƒŽ—•‹‡••„‹–‹‘•SULYDWHHTXLW\LQYHVWRUVLQ%XLOGLQJXSRQWKHFRPSDQ\¶VHDUO\VXFFHVVLQ0*1DFTXLUHGD%RVWRQEDVHGIUHLJKWPDQDJHPHQWFRPSDQ\DQGODXQFKHGDQHZ076SODWIRUP:LWKDIRFXVRQQH[WJHQHUDWLRQWHFKQRORJ\WKHFRPSDQ\FRQWLQXHGWRGHYHORSDGYDQFHGWUDQVSRUWDWLRQPRGXOHVZKLFKLQFOXGHGSUHGLFWLYHSULFLQJH[WHQVLYHYLVXDOL]DWLRQPHWULFVDQGLQWHOOLJHQWWUDQVSRUWDWLRQURXWLQJZKLFKRXWSDFHGDOOPDMRUSOD\HUVLQWKHVSDFH%\WKHFRPSDQ\KDGR\rvFHVLQ3KLODGHOSKLD%RVWRQDQG2UODQGRWRDVVLVWZLWKWKHJURZLQJGHPDQG7KHQLQWKHFRPSDQ\RSHQHGDQR\rvFHLQ6DQWLDJR'RPLQLFDQ5HSXEOLFWRKDQGOHWKHJURZLQJLQWHUQDWLRQDOQHHGVWKHFRPSDQ\FRQWLQXHGLWVH[SDQVLRQDQGDFTXLUHGDQLFKHWUXFNORDGEURNHUDJHLQ1HZ-HUVH\DQGLQWKHIROORZLQJ\HDUPDGHDQRWKHUVWUDWHJLFDFTXLVLWLRQRIDWHFKKHDY\&KLFDJREDVHGGLJLWDOEURNHUDJHZLWKDXQLTXHSURSULHWDU\WUXFNORDGSULFLQJDSS$JDLQLQWKHFRPSDQ\DFTXLUHGRQHRIWKHOHDGLQJSDUFHODXGLWLQJDQGPDQDJHPHQW¿UPVLQWKHFRXQWU\/DVW0*1/RJLVWLFVgVWDWHRIWKHDUWWKHQH[WJHQSODWIRUPR ‚HUVVHDPOHVVLQWHJUDWLRQLQWRH[LVWLQJ(QWHUSULVH5HVRXUFH3ODQQLQJ (53 DQG:DUHKRXVH0DQDJHPHQW6\VWHPV :06 RUFDQEHLPSOHPHQWHGDVDVWDQGDORQHVROXWLRQ  2FWREHUZZZWKHFLRZRUOGFRP dZîìD}šu]Œ}u‰v]}(îìîï \HDU0*1PDGHLWVPRVWUHFHQWDFTXLVLWLRQRID&DOLIRUQLDEDVHGQLFKHORJLVWLFV¿UP7RGD\0*1RSHUDWHVUHPRWHO\ZLWKR\rvFHVLQ3HQQV\OYDQLD1HZ-HUVH\0DVVDFKXVHWWV)ORULGD&DOLIRUQLDWKH'RPLQLFDQ5HSXEOLFDQG3XHUWR5LFR:KDW0*1%ULQJVWRWKH7DEOH0*1¶VFORXGEDVHGSODWIRUPVXSSRUWVDOOPRGHVRIWUDQVSRUWDWLRQLQFOXGLQJWUXFNORDG/7/RFHDQDLUUDLOLQWHUPRGDODQGSDUFHOSURYLGLQJFXVWRPHUVZLWKDSRZHUIXO\HWHDV\WRXVHVLQJOHVROXWLRQIRUWKHLUHQWLUHVXSSO\FKDLQ0*1/RJLVWLFV¶VWDWHRIWKHDUWQH[WJHQSODWIRUPR\ruHUVVHDPOHVVLQWHJUDWLRQLQWRH[LVWLQJ(QWHUSULVH5HVRXUFH3ODQQLQJ (53 DQG:DUHKRXVH0DQDJHPHQW6\VWHPV :06 RUFDQEHLPSOHPHQWHGDVDVWDQGDORQHVROXWLRQ7KHVHUYLFHVLQFOXGHPRGHDQGFDUULHUVHOHFWLRQUDWHRSWLPL]DWLRQDXWRPDWHGWUDFNLQJDQGWUDFLQJLQFOXGLQJ*36IUHLJKWELOODXGLWLQJDQGSD\PHQWEXVLQHVVLQWHOOLJHQFHDQGXWLOL]HVWKHLQGXVWULHVRQO\EORFNFKDLQDQGDUWL¿FLDOLQWHOOLJHQFHPDQDJHG076VXSSRUWHGE\VRSKLVWLFDWHGDQDO\WLFDOWRROVXVLQJPDFKLQHOHDUQLQJ0*1SURYLGHVWKHKLJKHVWOHYHORIFRQVXOWLQJH[SHULHQFHFRXSOHGZLWKWHFKQRORJ\WRLPSOHPHQWEHVWSUDFWLFHVFRPSOLDQFHDQGDXGLWLQJWRPD[LPL]HDOODYDLODEOHRSSRUWXQLWLHVIRULPSURYHPHQW7HFKQRORJ\,QQRYDWLRQDQG'HGLFDWLRQ0*1¶VFRUHYDOXHVDUHEDVHGRQWHFKQRORJ\LQQRYDWLRQDQGGHGLFDWLRQ7KHVHUHSUHVHQW0*1¶VFRUHVWUHQJWKVDQGJXLGLQJSULQFLSOHV0*1ORRNVWRWHFKQRORJ\WRVROYHWKHSUREOHPVWKDWH[LVWLQWKHWUDQVSRUWDWLRQDQGORJLVWLFVVSDFH7KHFRPSDQ\H[HPSOL¿HVORRNLQJEH\RQGFXUUHQWO\DYDLODEOHWHFKQRORJ\DQGFRQWLQXHVWRLQQRYDWHQHZFRQFHSWVDQGVROXWLRQVWKDWKDYHQRWSUHYLRXVO\EHHQDSSOLHGWRWKHVXSSO\FKDLQ$QGDOORIWKLVLVGRQHE\DGHGLFDWHGWHDPRIWHFKQRORJ\DQGORJLVWLFVH[SHUWV$WHDPQRWRQO\GHGLFDWHGWRVROXWLRQVEXWWRSURYLGLQJFOLHQWVZLWKWKHEHVWH[SHULHQFHSRVVLEOH)RUHIURQWRI,QQRYDWLRQ6LPLODUWRHYHU\WKLQJHOVHWRGD\WHFKQRORJ\KDVGUDPDWLFDOO\LPSURYHGWKHUHVXOWVRISULRUJHQHUDWLRQV6LPSOHWDVNVWRGD\WKDWDUHDXWRPDWLFDOO\IRUPXODWHGRUIXOO\FRPSOHWHG D©ZÁdo&}µvŒ˜KD'E�}P]Ÿ ZHUHRQFHGRQHPDQXDOO\DQGE\KDQGFRQVXPLQJVLJQL¿FDQWWLPHGHOD\VH[DFHUEDWLQJLQH\rvFLHQFLHVDQGFUHDWLQJURDGEORFNVWRJUHDWHUVXFFHVV7KHORJLVWLFVVSDFHRYHUDOOKDVEHHQVORZWRDGRSWVRPHRIWKHVHFKDQJHV$SHUIHFWH[DPSOHZRXOGEHWKHLQGXVWULHVFOLQJLQJWR(',WHFKQRORJ\UDWKHUWKDQDGRSWLQJPRUHGLYHUVHÀH[LEOHDQGSRZHUIXOSURWRFROVRIFRPPXQLFDWLRQ0*1KDVDOZD\VEHHQDWWKHIRUHIURQWRILQQRYDWLQJDQGKDVSXVKHGIRUZDUGZLWKPRUHVRSKLVWLFDWHGVROXWLRQVHYHQZKHQLWZDVDORQHLQLPSOHPHQWLQJWKHP7KLVQH[WJHQHUDWLRQWHFKQRORJ\DSSURDFKKDVDOORZHGWKHFRPSDQ\WRVWD\ZHOODKHDGRIWKHWHFKQRORJ\FXUYHDQGEHFRPHWKHLQGXVWULHV¶SUHPLHU076SURYLGHU³*ULWDQG'LVFLSOLQH´,QDQLQWHUYLHZZLWK7KH&,2:RUOGPDJD]LQHWKH)RXQGHUDQG&(2RI0*1/RJLVWLFV0DWWKHZ7HOHVFD 2FWREHUZZZWKHFLRZRUOGFRP ZDVDVNHGLIKHZRXOGOLNHWRVKDUHVRPHDGYLFHWRWKHEXGGLQJHQWUHSUHQHXUVZKRZRXOGOLNHWRYHQWXUHLQWRWKHORJLVWLFVLQGXVWU\+HVDLG³(YHU\RQHZDQWVWREHVXFFHVVIXODQG\HWIRUWKHPDMRULW\VXFFHVVLVYHU\HOXVLYH$VDQHQWUHSUHQHXU\RXQHHGJULWDQGGLVFLSOLQHDVZHOODVWKHDELOLW\WRJHWULJKWEDFNXSZKHQ\RXIDLOµRXQHYHUWUXO\IDLOXQOHVV\RXVWRSWU\LQJ¶DTXRWHIURP$OEHUW(LQVWHLQ,OLYHE\´³0\DGYLFHWREXGGLQJHQWUHSUHQHXUVZRXOGEHWREHSUHSDUHGWRZRUNDERYHDQGEH\RQGHYHU\RQHHOVH%HWKH¿UVWRQHLQWKHR\rvFHWKHODVWRQHWROHDYHDQGEHZLOOLQJWRGRZKDWHYHU\RQHHOVHRQO\WDONVDERXWGRLQJ%HSUHSDUHGWRIDLOIDLOXUHFRPHVZLWKVXFFHVVDQGVXFFHVVFRPHVIURPKDUGZRUN´DGGHGWKHLQVSLULQJ&(27KH3DQGHPLF5ROORXW:KLOH0*1KDVPDLQWDLQHGSK\VLFDOR\rvFHVWKURXJKRXWWKHSDQGHPLFQHDUO\DOOLWVHPSOR\HHVZRUNUHPRWHO\6LQFHWKHFRPSDQ\KDVEHHQFORXGEDVHGIURPHDUO\RQWKHWUDQVLWLRQWRUHPRWHZRUNZDVUHODWLYHO\HDV\DQGVWUDLJKWIRUZDUG 7KH\n!+"/."/ . '&DQG9LVLRQDU\\n  'D©ZÁdo]šZ&}µvŒK}(D'E�}P]ŸXdo]Œ]ovšŒ‰ŒvµŒvµ(µoµ]vuvUZÀ]vP}oZ].Œšo}P]Ÿµ]vš}‰Œ]Àš‹µ]šÇPŒ}µ‰]vZ]oššÁvŸXLŒŒoǐµUdo(}µ}vµ]o]vPD'E�}P]Ÿš}}v}(šZµ‰‰oÇZ]v]vµšŒÇ[‰Œu]ŒšZv}o}PÇ}u‰v]Xdo[lPŒ}µv]v.vvvo}P]ŸuvPuvšUÁoo}LÁŒÀo}‰uvšU‰}]Ÿ}vZ]u‰Œ(šoÇš}ov]vµšŒÇšZšÁ}voÇ]v]š]v(vÇÁ]šZšZv}o}P]oÀo}‰uvš]všZošíõõìvŒoÇîìììX )RU0*1FXVWRPHUVWKHWUDQVLWLRQZDVVHDPOHVVDVZHOOZLWKYHU\IHZHYHQUHFRJQL]LQJWKDW0*1/RJLVWLFVKDGVZLWFKHGWRDFRPSOHWHO\UHPRWHZRUNHQYLURQPHQW³7RWKLVGD\ZHUHPDLQIXOO\FRPPLWWHGWRWKHVDIHW\RIRXUHPSOR\HHVDQGFRQWLQXHWRUHPDLQZRUNLQJUHPRWHO\´FRPPHQWHGWKHDVWXWHIRXQGHU0DWWKHZ7HOHVFD'RPLQDWLQJWKH0DUNHWVRI)XWXUH0*1/RJLVWLFVKDVPDGHQXPHURXVVWUDWHJLFDFTXLVLWLRQVLQFOXGLQJWKHPRVWUHFHQWLQ$VL[WLPHUHFLSLHQWRI,QFPDJD]LQH¶VSUHVWLJLRXVUHFRJQLWLRQDVRQHRIWKHFRXQWU\¶VIDVWHVWJURZLQJSULYDWHFRPSDQLHV0*1KDVFRQWLQXHGLWVH[SORVLYHJURZWKWKURXJKYDULDVDFTXLVLWLRQVDQGRUJDQLFJURZWK7KLVLQVSLULQJFRPSDQ\SURPLVHVWRFRQWLQXHORRNLQJIRUPRUHDFTXLVLWLRQRSSRUWXQLWLHV 2FWREHUZZZWKHFLRZRUOGFRP &,2   * RYHUQPHQWVDURXQGWKHZRUOGDUHFRQVWDQWO\ORRNLQJIRUZD\VWRLPSURYHWKHTXDOLW\RIOLIHIRUWKHLUFLWL]HQVDQGUHVLGHQWV2QHZD\WRDFKLHYHWKLVLVE\FUHDWLQJFLWL]HQFHQWULFVHUYLFHVWKDWDUHWDLORUHGWRWKHQHHGVDQGSUHIHUHQFHVRIWKHSHRSOHWKH\VHUYH:LWKWKHDGYHQWRIHPHUJLQJWHFKQRORJLHVVXFKDVDUWL¿FLDOLQWHOOLJHQFHGLJLWDOWZLQGDWDDQDO\WLFVDQGPHWDYHUVHJRYHUQPHQWVKDYHPRUHWRROVDWWKHLUGLVSRVDOWKDQHYHUEHIRUHWRLPSURYHFLWL]HQFHQWULFVHUYLFHV7KH,PSRUWDQFHRI&LWL]HQ&HQWULF6HUYLFHV&LWL]HQFHQWULFVHUYLFHVDUHVHUYLFHVWKDWDUHGHVLJQHGZLWKWKHQHHGVDQGSUHIHUHQFHVRIFLWL]HQVLQPLQG7KH\DUHGHVLJQHGWREHDFFHVVLEOHXVHUIULHQGO\DQGH\rvFLHQWDQGWRSURYLGHDKLJKOHYHORIFXVWRPHUVDWLVIDFWLRQ&LWL]HQFHQWULFVHUYLFHVDUHFULWLFDOWRWKHVXFFHVVRIDQ\JRYHUQPHQWDVWKH\KHOSWREXLOGWUXVWEHWZHHQFLWL]HQVDQGWKHJRYHUQPHQWDQGWKH\DOVRKHOSWRLPSURYHWKHTXDOLW\RIOLIHIRUFLWL]HQV(PHUJLQJ7HFKQRORJLHVWKDW,PSURYH&LWL]HQ&HQWULF6HUYLFHV$UWL¿FLDO,QWHOOLJHQFH $, $UWL¿FLDOLQWHOOLJHQFHLVRQHRIWKHPRVWSRZHUIXOHPHUJLQJWHFKQRORJLHVWKDWJRYHUQPHQWVFDQXVHWRLPSURYHFLWL]HQFHQWULFVHUYLFHV$,FDQEHXVHGWRDXWRPDWHUHSHWLWLYHWDVNVDQDO\]HGDWDDQGPDNHSUHGLFWLRQVDERXWFLWL]HQQHHGVDQGSUHIHUHQFHV)RUH[DPSOH$,FDQEHXVHGWRDQDO\]HFLWL]HQGDWDDQGPDNHSUHGLFWLRQVDERXWZKLFKVHUYLFHVZLOOEHLQKLJKGHPDQGDOORZLQJJRYHUQPHQWVWRDOORFDWHUHVRXUFHVPRUHH\rvFLHQWO\$,FDQDOVREHXVHGWRSHUVRQDOL]HVHUYLFHVEDVHGRQFLWL]HQSUHIHUHQFHVSURYLGLQJDEHWWHUFXVWRPHUH[SHULHQFH'LJLWDO7ZLQ'LJLWDOWZLQWHFKQRORJ\LQYROYHVFUHDWLQJDGLJLWDOUHSOLFDRIDSK\VLFDOV\VWHPVXFKDVDFLW\RUDEXLOGLQJ'LJLWDOWZLQWHFKQRORJ\FDQEHXVHGE\JRYHUQPHQWVWRVLPXODWHWKHLPSDFWRIGL\ruHUHQWSROLFLHVDQGLQLWLDWLYHVRQFLWL]HQV)RUH[DPSOHJRYHUQPHQWVFDQXVHGLJLWDOWZLQWHFKQRORJ\WRVLPXODWHWKHLPSDFWRIDQHZSXEOLFWUDQVSRUWDWLRQV\VWHPRQWUD\rvFFRQJHVWLRQDLUSROOXWLRQDQGFLWL]HQVDWLVIDFWLRQ7KLVFDQKHOSJRYHUQPHQWVWRPDNHEHWWHUGHFLVLRQVDERXWKRZWRDOORFDWHUHVRXUFHVDQGGHVLJQVHUYLFHV'DWD$QDO\WLFV'DWDDQDO\WLFVLQYROYHVXVLQJVWDWLVWLFDODQGFRPSXWDWLRQDOPHWKRGVWRDQDO\]HODUJHGDWDVHWV*RYHUQPHQWVFDQXVHGDWDDQDO\WLFVWRLGHQWLI\WUHQGVDQGSDWWHUQVLQFLWL]HQEHKDYLRUDQGWRPDNHSUHGLFWLRQVDERXWIXWXUHFLWL]HQQHHGVDQGSUHIHUHQFHV)RUH[DPSOHJRYHUQPHQWVFDQXVHGDWDDQDO\WLFVWRDQDO\]HVRFLDOPHGLDGDWDWRLGHQWLI\ZKLFK $SFBUJOHUIF "-"3'F'-+" 6HUYLFH PGUIF.-.+±,"' ± (PHUJLQJ 5FDIOPMPHJFT %\9LQHHVKD6DWZDQL 2FWREHUZZZWKHFLRZRUOGFRP s]vZ^šÁv]À]}Œt]P]šodŒv(}ŒuŸ}v˜^šŒšPÇ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rvFLHQWDQGFRQYHQLHQWZD\IRUFLWL]HQVWRDFFHVVJRYHUQPHQWVHUYLFHV([DPSOHVRI*RYHUQPHQWV8VLQJ(PHUJLQJ7HFKQRORJLHVWR,PSURYH&LWL]HQ&HQWULF6HUYLFHV2QHJRYHUQPHQWKDVXVHGFRQVXPHUEHKDYLRUDQDO\WLFVWRLPSURYHFLWL]HQFHQWULFVHUYLFHV7KHJRYHUQPHQWDQDO\]HGFLWL]HQGDWDWRLGHQWLI\ZKLFKVHUYLFHVZHUHPRVWLQGHPDQGDQGWKHQXVHGWKLVLQIRUPDWLRQWRGHVLJQVHUYLFHVWKDWZHUHWDLORUHGWRFLWL]HQQHHGV7KHJRYHUQPHQWDOVRXVHGPDFKLQHOHDUQLQJDOJRULWKPVWRSUHGLFWZKLFKVHUYLFHVZRXOGEHLQKLJKGHPDQGLQWKHIXWXUHDOORZLQJWKHPWRDOORFDWHUHVRXUFHVPRUHH\rvFLHQWO\$QRWKHUJRYHUQPHQWKDVXVHGGLJLWDOWZLQWHFKQRORJ\WRVLPXODWHWKHLPSDFWRIDQHZSXEOLFWUDQVSRUWDWLRQV\VWHPRQFLWL]HQVDWLVIDFWLRQ7KHJRYHUQPHQWXVHGWKHGLJLWDOWZLQWRVLPXODWHGL\ruHUHQWVFHQDULRVDQGWKHQXVHGFLWL]HQIHHGEDFNWRUH¿QHWKHGHVLJQRIWKHQHZV\VWHP7KLVKHOSHGWRHQVXUHWKDWWKHQHZV\VWHPZDVRSWLPL]HGWRPHHWFLWL]HQQHHGVDQGSUHIHUHQFHV*RYHUQPHQWVFDQXWLOL]H'LJLWDO,PPXQH6\VWHPVWRSURWHFWWKHLUQHWZRUNVDQGVHQVLWLYHGDWDIURPF\EHUWKUHDWVZKLOH,QGXVWU\&ORXG3ODWIRUPVFDQKHOSWKHPH\rvFLHQWO\PDQDJHDQGGHOLYHUFLWL]HQFHQWULFVHUYLFHV3ODWIRUP(QJLQHHULQJFDQHQDEOHJRYHUQPHQWVWREXLOGDQGRSHUDWHVFDODEOHGLJLWDOSODWIRUPVZKLOH:LUHOHVV9DOXH5HDOL]DWLRQFDQKHOSWKHPOHYHUDJHZLUHOHVVWHFKQRORJ\IRULPSURYHGFRQQHFWLYLW\DQGFRPPXQLFDWLRQ6XSHUDSSVFDQR\ruHUDFHQWUDOL]HGKXEIRUFLWL]HQVWRDFFHVVPXOWLSOHJRYHUQPHQWVHUYLFHVZKLOH$GDSWLYH$,FDQKHOSDXWRPDWHDQGRSWLPL]HYDULRXVSURFHVVHV6XVWDLQDEOH7HFKQRORJ\FDQKHOSJRYHUQPHQWVUHGXFHWKHLUFDUERQIRRWSULQWDQGSURPRWHHQYLURQPHQWDOO\IULHQGO\SUDFWLFHVLQWKHLURSHUDWLRQV8VHRI$,LQ*RYHUQPHQW6HUYLFHVDQG3DYLQJWKH:D\IRUDQ(\rvFLHQW)XWXUH7KHXVHRI$,LQJRYHUQPHQWVHUYLFHVFDQVLJQL¿FDQWO\LPSURYHH\rvFLHQF\UHGXFHFRVWVDQGSURYLGHEHWWHUVHUYLFHVWRWKHSXEOLF7KHLQWHJUDWLRQRI$,LQYDULRXVJRYHUQPHQWVHUYLFHVFDQDVVLVWSXEOLFRUJDQL]DWLRQVLQPDNLQJGDWDGULYHQGHFLVLRQVDQDO\]LQJDQGHYDOXDWLQJSXEOLFIHHGEDFNDQGSURYLGLQJSHUVRQDOL]HGVHUYLFHVWRFLWL]HQV$,SRZHUHGFKDWERWVFDQKHOSLQDQVZHULQJFLWL]HQV\n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rvFSDWWHUQVDQGRSWLPL]HWUD\rvFPDQDJHPHQWV\VWHPVUHVXOWLQJLQUHGXFHGFRQJHVWLRQDQGLPSURYHGWUD\rvFÀRZ1/3RUQDWXUDOODQJXDJHSURFHVVLQJLVDYLWDODVSHFWRI$,WKDWFDQKHOSJRYHUQPHQWVZLWKODQJXDJHWUDQVODWLRQDQGVHQWLPHQWDQDO\VLV*RYHUQPHQWVFDQXVH1/3WRSURFHVVYDVWDPRXQWVRISXEOLFIHHGEDFNLQUHDOWLPHHQDEOLQJWKHPWRUHVSRQGSURDFWLYHO\WRSXEOLFFRQFHUQV6HQWLPHQWDQDO\VLVFDQDOVREHXVHGWRJDXJHWKHSXEOLF\nVSHUFHSWLRQRIYDULRXVJRYHUQPHQWLQLWLDWLYHVDOORZLQJSXEOLFRUJDQL]DWLRQVWRPRGLI\WKHLUSURJUDPVDFFRUGLQJO\0DFKLQHOHDUQLQJLVDQRWKHU$,WHFKQRORJ\WKDWFDQKHOSJRYHUQPHQWVE\SUHGLFWLQJIXWXUHWUHQGVDQGLGHQWLI\LQJSDWWHUQVLQGDWD)RUH[DPSOHPDFKLQHOHDUQLQJFDQEHXVHGWRSUHGLFWZKLFKDUHDVDUHPRUHSURQHWRÀRRGLQJRUQDWXUDOGLVDVWHUVDOORZLQJJRYHUQPHQWVWRWDNHSUHHPSWLYHPHDVXUHVDQGSUHSDUHIRUVXFKVLWXDWLRQV+RZHYHUWKHXVHRI$,LQJRYHUQPHQWVHUYLFHVDOVRFRPHVZLWKULVNV2QHRIWKHVLJQL¿FDQWFRQFHUQVVXUURXQGLQJ$,LQSXEOLFVHUYLFHVLVSULYDF\*RYHUQPHQWVPXVWHQVXUHWKDWFLWL]HQV\nGDWDLVVHFXUHDQGSURWHFWHGIURPPLVXVHRUXQDXWKRUL]HGDFFHVV7UDQVSDUHQF\LVDOVRFUXFLDODQGJRYHUQPHQWVPXVWEHWUDQVSDUHQWDERXWWKHGDWDWKH\FROOHFWDQGKRZWKH\XVHLW$QRWKHUFRQFHUQLVWKHSRWHQWLDOELDVLQ$,DOJRULWKPV$,PRGHOVDUHRQO\DVJRRGDVWKHGDWDWKH\DUHWUDLQHGRQDQGLIWKHGDWDLVELDVHGWKHPRGHOZLOOSURGXFHELDVHGUHVXOWV7KHUHIRUHLWLVHVVHQWLDOIRUJRYHUQPHQWVWRHQVXUHWKDWWKHLU$,V\VWHPVDUHWUDQVSDUHQWDQGXQELDVHGDQGWKDWWKH\GRQRWXQIDLUO\GLVFULPLQDWHDJDLQVWDQ\JURXSRISHRSOH,QFRQFOXVLRQHPHUJLQJWHFKQRORJLHVVXFKDVDUWL¿FLDOLQWHOOLJHQFHGLJLWDOWZLQVGDWDDQDO\WLFVDQGWKHPHWDYHUVHKDYHWKHSRWHQWLDOWRUHYROXWLRQL]HFLWL]HQFHQWULFJRYHUQPHQWVHUYLFHV%\KDUQHVVLQJWKHSRZHURIWKHVHWHFKQRORJLHVJRYHUQPHQWVFDQLPSURYHWKHLUVHUYLFHVLQFUHDVHH\rvFLHQF\DQGHQKDQFHWKHTXDOLW\RIOLIHIRUFLWL]HQVDQGUHVLGHQWV+RZHYHUDVZLWKDQ\QHZWHFKQRORJ\ULVNVDQGFKDOOHQJHVPXVWDOVREHFRQVLGHUHGVXFKDVSULYDF\FRQFHUQVDQGWKHQHHGIRUSURSHUWUDLQLQJDQGRYHUVLJKW,WLVLPSRUWDQWIRUJRYHUQPHQWVWRWDNHDWKRXJKWIXODQGVWUDWHJLFDSSURDFKWRLPSOHPHQWHPHUJLQJWHFKQRORJLHVLQWKHLUVHUYLFHVWRHQVXUHWKHEHVWSRVVLEOHRXWFRPHVIRUDOOVWDNHKROGHUV8OWLPDWHO\WKHIXWXUHRIFLWL]HQFHQWULFJRYHUQPHQWVHUYLFHVORRNVEULJKWZLWKWKHLQFRUSRUDWLRQRIHPHUJLQJWHFKQRORJLHV  2FWREHUZZZWKHFLRZRUOGFRP 6XEVFULSWLRQ /K ÁÁÁXšZ]}Á}ŒoX}u