You are on page 1of 44

&RPPRGLWLHV

'HULYDWLYHV

35(6,'(17
*6ULYDWVDYD

9,&(35(6,'(17
9LQD\DN0HKDUZDGH

$'9,625<3$1(/
5&3RWD([+//


'HDU5HDGHUV

JLQQLQJ
 EXOO WUHQG EH
QJ
UR
VW
D

HG
VV
HHQ
 ZLWQH
LVPDWFKEHWZ
6SLFHV FRPSOH[
XQGDPHQWDO P
I

E\

LQJ
UU
HG
ED
FN

ED

H[
HVFRPSO
-XQH
PRQJ WKH VSLF
$

LHV DQG
O\
LOO
SS
FK

VX
HU
G
GHPDQG DQ
VXFKDV SHSS
W
WKH
NH
DV
E
KH
W
SSHU HQMR\HG
U SHHUV LQ
DUG MRXUQH\ 3H
KZ
WXUPHULF RWKH
UW
DV
QR
H
LY
G
FW
WH
UD
XS
WW
UQHGD
DQ XQLQWHUU
OHYHOV-HHUDWX
DO
MHHUD HQMR\HG
RE
WV
JO
NH
H
DU
WK
DW
OP
JORED
SURGXFWLRQ
VXSSOLHUWRWKH
OH
VR
EHQHWRIORZHU
H
WK
D
UL
J
LQ
6\
G
EH
XUNH\DQ
WKHEHQHWRI
QWULHVVXFKDV7
RX
F
,QGLDHQMR\HG
QJ
UW
WL
SR
SH
H[
RP
QGJRRG
UHRIFURSLQF
HVWLF RXWSXWD
RP
G
HU
JLYHQWKHIDLOX
OH
RZ
O
KR
Z
RQ
H[DVD
DKRWIDYRULWH
DWVSLFHVFRPSO
WK
\
HO
&KLOOLHV WXUQHG
OLN
H
WR
RU
LQ
G
P
IDFWRUH
JVDLGWKXVLWLV
WDOVKDYH EHHQ
HQ
P
GD
GHPDQG+DYLQ
XQ
I
WK

KH
W
HQWV LQ H
XVH DVPRVW RI
Q WR GHYHORSP
LR
QW
WH
DW
PLJKWWDNH D SD
V
LW

LWFK
DUNHW PLJKW VZ
SULFHV 7KH P

JUDLQVFRPSOH[
WKHFURS
DJHUO\DZDLWLQJ
H
UH
D
WV
NH
DU
P
D DQG
QGWKH
 PXVWDUG FKDQ
ERXWWREHJLQD
5DELVHDVRQLVD
VXFK DVZKHDW
SV
UR
DWLYH
F
XO
EL
HF
UD
VS
O
PRUH
Q SULQFLSD
LQWKHZHDWKHU
WV
GHYHORSPHQWVL
HQ
P
RS
D\VLD
HO
DO
HY
0
SDOPRLO
WKHUHFHQWG
SDUWLFXODUO\ LQ
H[
SRWDWRHV:LWK
SO
P
FR
QDUH
LR
LO
FW
R
SURGX
H HYLGHQW LQ
(O1LQR ZKRVH
RI
W
DFWLYLWLHVZLOOE
HD

K
KH
OW
RQ
SURGXFWL ZLOO
DUHOLNHO\WRIHH
HURQ SDOPRLO
WK
HD
Z
DQG,QGRQHVLD

I

R

FW
O\
SD
UWV QHDU
HDWKHU 7KH LP
H[ ,QGLD LPSR
SO
P
FR
SURQH WRGU\Z
LO

R
RU
DO
DM
P
JORE
S\LQJ
QJLPSDFWRQ
 FRPSOH[ RFFX
OP
SD
K
LW
KDYHDFDVFDGL
Z


OH
WV
LE
HPHQ
HVWLFHG
LEOH RLO UHTXLU
FULWLFDOIRUGRP
LV
W
RQ
IU
RI LWV WRWDO HG
LO
R
P
SDO
HYHORSPHQWLQ
VKDUH+HQFHG
RLOPDUNHWV
ZKHDW
IDWH RI,QGLDQ
KH
W
GH
FL
GH
R
W
WHG
OLNHO\
KHZHDWKHUUHOD
OVHV ZHDWKHULV
GHUORZVWRFNV7
,QJUDLQV DQG SX
XQ
J
DW
LQ
KH
HO
Z
UH
WR
G\
UHODWLRQ
FKDUHDOUHD
SDUWLFXODUO\LQ
Q
LR
DQGFKDQDZKL
FW
V
GX
RQ
UR
WL
S
QD
LQ
J
HORSLQ
JOREDOIRRGJUD
DOXQUHVW LQGHY
LF
LW
LPSDFWRQWKH

RO
HU
S
JK
QG
KL
D

DO
 ZLWQHVV
VWDWHRI VRFL
FRXQWHUV DUH WR

HV
OV
FRXOG FUHDWHD

SX
QW
G
OH
DQ
EX

VHWXU
H FDVH JUDLQV
LQJ GD\V ,QWKH
RP
F
KH
:KDWHYHU EH WK

W
LQ
QJ
V
UL
LH
VX
OH LQ HQ
LHV DQG YRODWLOLW
D GRPLQDQW UR

D\
SO

OHYHO RIDFWLYLW
WR
W
HQ
UQP
Q H[SHFW *RYH
VWDELOLW\
WLPHV RQH FD
DLQWDLQLQJSULFH
P
QG
D
HV
LF
SU
H
VRQDEO
VXSSOLHVDWUHD
PHQWV
YDOXDEOHFRP
([SHFWLQJ\RXU
*RRGOXFN
UWK\1
6ULQLYDVD0RR

(',725,1&+$5*(
6ULQLYDVD0RRUWK\

(',725 +,1',6(&7,21
9LQD\6RQL

5(6($5&+7($0
$UYLQG
'HHSD
'HYLND5DQL
'U3UDVDQQD
*DQJDGKDUD
-DQF\
0DQLVK
0DQMXQDWK3UDVDG
6KDVKLNDQWK
6KXHE
6UHHQLYDVXOX
6RQL.XPDUL
9DVDQWK.XPDU
9HQNDWDUDPDQ
9LQD\6RQL

6$/(6 352027,21
5DMDW6DEKDUZDO
$EKLQD\D
6XMDWKD
6ZDSQD

'(6,*1(5
%KDVNDU/1

'$7$6833257
*DMHQGUD6
6KLYD.XPDU6
*RSDO

&25325$7(2)),&(
%$1*$/25(
WK+0DLQ,&URVV5RDG
+$/,,6WDJH %DQJDORUH
7HO
)D[
PNWJ#IEVSOFRP

%86,1(66$662&,$7(
763UDVDG9LMD\DZDGD


(GLWHG3ULQWHG 3XEOLVKHGDQGRZQHGE\*6ULYDWVDYD +0DLQ,&URVV+$/,,6WDJH%DQJDORUH


3ULQWHGDW%ULOOLDQW3ULQWHUV3YW/WG509,,6WDJH/RWWHJROODKDOOL%DQJDORUH
WK

LQWKLVLVVXH
&RYHUVWRU\
(O1LQR$QHZWKUHDWWRZKHDW 3DJH
,QWKHHYHQWRIWKHSUHYLRXV(O1LQRVEHLQJDJUHDWH\HRSHQHUWRXVWKH
GHYHORSPHQW RI WKH FXUUHQW (O 1LQR KDV WR EH FORVHO\ IROORZHG7KHUH LV D
QHHGIRUSROLF\PDNHUVVFLHQWLVWVDQGIDUPHUVWRXQGHUVWDQGWKHEHKDYLRXU
RIWKLVSKHQRPHQRQVRWKDWWKH\GHYLVHVWUDWHJLHVWRFRSHZLWKLWVSRWHQWLDO
LPSDFWRQDJULFXOWXUHDQGIRRGVXSSO\
)DFH)DFH
5HJXODWHGPDUNHWVWKDWDUHIXOO\RSHQWRFURVVERUGHU3DJH
LQYHVWPHQWH[KLELW(FRQRPLHVRI6FDOHDQG1HWZRUN(IIHFWV
0U-RKQ 3 'DYLGVRQ 0' DQG &KLHI &RUSRUDWH 'HYHORSPHQW 2IFHU
&0(
$UWLFOH
&RPPRGLW\([FKDQJHV/D\LQJWKHURDGPDSIRU1DWLRQDO&RPPRQ0DUNHW
3DJH
96KXQPXJDP &KLHI(FRQRPLVW0&;
6XVWDLQHGDYDLODELOLW\RIHIIFLHQWO\GLVFRYHUHGSULFHVZRXOGLQFUHDVHWKH
HIIHFLHQF\ RIWKH YDOXH FKDLQ E\ UHGXFLQJ WKH UHGXQGDQW DQG UHSHWLWLYH
LQWHUPHGLDULHVDQGE\VTXHH]LQJWKHLUPDUJLQVWRUHHFWWKHLUHFRQRPLF
YDOXHDGGLWLRQ
/RQJ7HUP)XWXUHV&RQWUDFWV,Q$JULFXOWXUDO3URGXFWV3DJH
6XUDEKD3XWKL\DYHHWWLO(FRQRPLVW1&'(;
/RQJWHUPFRQWUDFWVELQGVEX\HUVDQGVHOOHUVLQWRDELODWHUDOPRQRSRO\DQG
SDUWVDFHUWDLQSULFHVWDELOLW\OHYHOVRIXQGHUO\LQJDVVHWV
HFRQG*UHHQ5HYROXWLRQWKURXJKH5HYROXWLRQ3DJH
.DLODVK*XSWD 0DQDJLQJ'LUHFWRU1DWLRQDO0XOWL&RPPRGLW\([FKDQJH

&DVWRUVHHG*ORVVLQJZHOORQVXSSO\FRQFHUQV3DJH
7KH FUHGLW RI KLJKHU SULFH UHDOL]DWLRQ LV WKH IDFWRU RI GHFOLQH LQ
GRPHVWLFSURGXFWLRQDQGVLJQLFDQWLQFUHDVHLQH[SRUWGHPDQG

:HDN5HERXQGLQ2FWREHU3DJH
'RQDOG'RQ\)&6,)7$':'RQ\ $VVRFLDWHV,QF&DQDGD
&RWWRQRQDUPIRRWLQJ3DJH
)XQGDPHQWDOGHYHORSPHQWVLQWKHFRWWRQHFRQRP\ERWKLQ,QGLDDQGWKHUHVWRIWKH
ZRUOG SRLQW WR UPHU SULFHV WKDQNV WR VWDJQDQW SURGXFWLRQ VWHDG\
JURZWKLQGHPDQGIRUFRWWRQDQGGZLQGOLQJFORVLQJVWRFNV

6HWEDFNWR/RFDWLRQ%DVHG3UHPLXP'LVFRXQW7KHRU\
)URP)U\LQJ3DQWR)LUH$VKRN.XPDU*DQJZDO3DJH
'LG<RX.QRZ"3DJH
&(2&RQFODYH3DJH
%URNHUV&DOO
-HHUD7KH5DOO\&RQWLQXHV3DJH
+DULVK*DOLSHOOL6HQLRU5HVHDUFK$QDO\VW.DUY\&RP7UDGH
%URNHUV6KRZ<RX+RZ7R3OD\7KH*DPH7R:LQ3DJH
0V0DQMXOD$QDVNDU5HVHDUFK$QDO\VW60&&RPWUDGH3YW/LPLWHG
0DUNHWZDWFK
([FKDQJH7UDGHG&RPPRGLWLHV3HUIRUPDQFHIRUWKHPRQWKRI2FWREHU3DJH
'RPHVWLFVSRWPDUNHWUHYLHZ3DJH
0DQGLDUULYDOV3DJH
+LQGLVHFWLRQ3DJH
+HUHLVDJUHDWRSSRUWXQLW\WRPDNHWKLVPDJD]LQH\RXURZQ.LQGO\IHHOIUHHWR
SRVW\RXUDSSUHFLDWLRQVDQGFULWLFLVPVDERXWDUWLFOHVDQDO\VHVDQGRSLQLRQV
DSSHDULQJLQ& '6HOHFWHGFRPPHQWVZRXOGEHDSSHDULQJLQRXUPDJD]LQH
ZLWK\RXUQDPHIURPQH[WPRQWK<RXUFRQWULEXWLRQZRXOGEHDJUHDWVWHS
LQ DGGLQJ YDOXH WR WKH PDJD]LQH DQG PDNLQJ &RPPRGLWLHV  'HULYD
WLYHVDGGUHVVWKHQHHGVRILWVUHDGHUV.LQGO\SRVW\RXUFRPPHQWVWR
)RUHWHOO%XVLQHVV6ROXWLRQV 3 /WG+0DLQVW&URVV5RDG+$/
,,6WDJH%DQJDORUHVXSHUVFULEHGDV/HWWHUVWRWKH(GLWRU& '
RUVLPSO\PDLOWKHPWRSXEO#FRPPRGLW\LQGLDFRP

6XEVFULEH1RZ
$PRQWKO\PDJD]LQHRQ([FKDQJH
7UDGHG&RPPRGLWLHV
z([FOXVLYH,QWHUYLHZ
z%URNHUVFDOO
z2XWORRN
z'DWD 6WDWLVWLFV
z.QRZ<RXU&RPPRGLW\
z6SRW0DUNHW5HYLHZ
z&ODVVURRPDQG0RUH

$FRPSUHKHQVLYHPRQWKO\PDJD]LQH
RQ,QGLDQDJULEXVLQHVVDQGIRRG
SURFHVVLQJVHFWRU
z([SHUW$UWLFOHV
z1HZV7UHQGVDQG3ROLFLHV
z3URGXFWLRQDQG3URFHVVLQJ
7HFKQRORJ\
z0DUNHW:DWFK
z0DQGL$UULYDOV

&RPPRGLWLHV 'HULYDWLYHV
&RYHU3ULFH
\HDU
\HDU
\HDU
ZZZ&RPPRGLW\,QGLDFRP
&RYHU3ULFH
\HDU
\HDU

%\3RVW
5V



%\3RVW
5V



%\&RXULHU
5V



%\&RXULHU
5V



\HDU


%\3RVW


%\&RXULHU

63(&,$/2))(5
6XEVFULEHERWK
PDJD]LQHVIRU\HDU





, 1 7 ( 5 1 $7 , 2 1 $ / 6 8 % 6 & 5 , 3 7 , 2 1
& R P P R G LW LH V ' H ULYDW LYH V  0 D J D ] L QH   \H D U  D W 86 '   :H E  ( G L W L R Q
Z Z Z &RPPRG LW \ ,Q G LD F RP  0 D J D ] L QH    \H D U  D W 86 '   :H E  ( G L WL R Q
6 X E VF ULE H E RW K 0DJD]LQH V  I R U    \H D U  D W 86'    :H E  ( G L WL R Q
)RUGHWDLOVZULWHWRPNWJ#IEVSOFRP

1DPH BBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBB
$GGUHVV
BBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBB
BBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBB
3RVWDO &RGHBBBBBBBBBBBBBBBBBBBBBBB7HO)D[ BBBBBBBBBBBBBBBBBBBBBBBB
(PDLO  BBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBB
3D\PHQW'HWDLOV
3D\PHQW(QFORVHG
&KHTXH 

'HPDQG'UDIW
1RBBBBBBBBBBBBBBBBBBBBBBBBB'UDZQRQBBBBBBBBBBBBBBBBBBBBBBBBBBB
LQ )DYRU RI 0V )RUHWHOO %XVLQHVV 6ROXWLRQV 3ULYDWH /LPLWHG SD\DEOH DW
EDQJDORUH)RUQRQ%DQJDORUHFKHTXHSOHDVHDGG5V
&KDUJHP\&UHGLW&DUG 9,6$ 0$67(5
&DUG1RB  B  B  B    B  B  B  B    B  B  B  B    B  B  B  B
([SLU\'DWHBBBBBBBBBBBBBBBBBBBBBBBBBB
&DUG0HPEHU1DPHBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBB
&991R /DVWGLJLWVRQWKHUHYHUVHRIWKHFDUG BBB
6LJQDWXUHBBBBBBBBBBBBBBBBBBBBBBBBBBBBB'DWHBBBBBBBBBBBBBBBBBBBBB
O5DWHVDQGRIIHUYDOLGLQ,QGLDRQO\O6SHFLDORIIHUYDOLGIRUDOLPLWHGSHULRG

0DLOWKLVFRXSRQWR
)RUHWHOO%XVLQHVV6ROXWLRQV3ULYDWH/LPLWHG
WK+0DLQVW&URVV5RDG+$/QG6WDJH%DQJDORUH7HO
)D[HPDLOPNWJ#IEVSOFRP

&29(56725<

(O1LQR$QHZ
WKUHDWWRZKHDW
VRXWKHUQ$XVWUDOLDDFURVV,QGRQHVLD
KH
:RUOG
0HWHRURORJLFDO
0DOD\VLDDQGPRVWRIWKH3KLOLSSLQHV
RUJDQL]DWLRQ
ZDUQHG
LQ
&OLPDWRORJLVWV KDYH DOVR IRUHFDVW
6HSWHPEHU  WKDW FOLPDWH
WKDW SDUWV RI $XVWUDOLD ,QGRQHVLD
SDWWHUQV DFURVV WKH HTXDWRULDO
0DOD\VLDDQG3DSXD1HZ*XLQHDPD\
3DFLF RYHU WKH SDVW IHZ PRQWKV
JHWDVOLWWOHDVRQHWHQWKRIDYHUDJH
KDYH GHYHORSHG D QRWDEOH WHQGHQF\
UDLQIDOO LQ WKH ODVW TXDUWHU RI WKLV
WRZDUG(O1LQRFRQGLWLRQV$OWKRXJK
\HDU ZKLOH FHQWUDO DQG QRUWKHUQ
DVWURQJ(O1LQRSKHQRPHQRQLVQRW
,QGLD3DNLVWDQDQG7KDLODQGPD\DOVR
IRUHFDVW DW WKLV HDUO\ VWDJH DQG
H[SHULHQFH EHORZDYHUDJH UDLQIDOO
WKH DVVRFLDWHG FOLPDWLF HIIHFWV LQ
$OO WKLV PHDQV WKDW WKHUH ZRXOG EH
PRVW UHJLRQV DUH H[SHFWHG WR EH
VODVK RXWSXW RI ZKHDW LQ $XVWUDOLD
ZHDN WKHVH PD\ EH QRQHWKHOHVV
WKH ZRUOGV VHFRQGODUJHVW ZKHDW
VLJQLFDQW DW UHJLRQDO OHYHO ,W DOVR
H[SRUWHU SDOP RLO LQ 0DOD\VLD DQG
SUHGLFWHGWKDWVXFKDQHYHQWZRXOG
,QGRQHVLD WKH PDMRU VRXUFH RI WKH
SHUVLVW LQWR HDUO\  7\SLFDO
ZRUOGV VXSSO\ RI WKH RLO DQG PD\
ZHDWKHU SDWWHUQV GXULQJ (O 1LQR
KDYH LWV LPSDFW RQ RWKHU UHJLRQDO
HYHQWVVXJJHVWWKDWWKHUDLQDUHDWKDW
VSHFLFFURSVWRROLNHWKDWRIFRIIHH
LV XVXDOO\ FHQWHUHG RYHU ,QGRQHVLD
SHSSHUUXEEHUDQGSHUKDSVVXJDU
DQG WKH IDU ZHVWHUQ 3DFLF PRYHV
HDVWZDUG LQWR WKH FHQWUDO 3DFLF
3HUFHQWDJHGURSLQFURSSURGXFWLRQ
OHDYLQJODQGPDVVDURXQG$VLD3DFLF
OHYHOVGXULQJWKH(O1LQR<HDUV
UHJLRQOLWHUDOO\GU\VRPHWLPHVHYHQ
WULJJHULQJIRUHVWUHV,QFRQWUDVWWKH
VDPH SKHQRPHQRQ FDXVHV GLVDVWHU
WKURXJKRRGVLQWKH:HVWHUQFRDVWDO
UHJLRQVRIWKH$PHULFDV

,PSDFWRQ*OREDO$JULFXOWXUH
6RPH LPSDFW RI WKH GHYHORSLQJ (O
1LxR FRQGLWLRQV LV DOUHDG\ HYLGHQW
VXFKDVWKHEHORZDYHUDJHUDLQIDOOLQ

1RYHPEHU

)URP WKH DERYH JUDSK LW LV FOHDU


WKDW WKH HIIHFW RI (O 1LQR KDV
SUHGRPLQDQWO\ LPSDFWHG $XVWUDOLDQ
ZKHDW FURS PRUH WKDQ RWKHUV ,W LV
DOVR HYLGHQW WKDW WKH ZRUVW HYHU (O
1LQRRIWKHODVWFHQWXU\WKDWRFFXUUHG
GXULQJKDVFDXVHGDGHFOLQH
LQWKHRXWSXWRIERWK0DOD\VLDQDQG
,QGRQHVLDQ SDOP RLO $OVR LQ WKDW
SHULRG ,QGRQHVLD KDG WR EX\ FRUQ
IURP ZRUOG PDUNHWV DIWHU GRPHVWLF
VXSSOLHV IHOO VKDUSO\ ZKLOH FRFRD
RXWSXWIHOODQGWKHFRIIHHFURS
ZDVDOVRKLW
7KLV \HDU VR IDU EHORZ DYHUDJH
UDLQIDOO FRPELQHG ZLWK ZDUPHU
WKDQ DYHUDJH WHPSHUDWXUHV VWURQJ
ZLQGVDQGODFNRIVXEVRLOPRLVWXUHLQ
$XVWUDOLDKDYHUHVXOWHGLQWKHQHHGWR
UHGXFHZKHDWFURSRXWSXWHVWLPDWHV
LQWKHFRQWLQHQW7KHFXUUHQWZKHDW
FURSSURGXFWLRQHVWLPDWHV  
KDVEHHQFXWE\PRUHWKDQKDOIIURP
ODVW\HDUVPLOOLRQWRQVDQGWKHUH
LVDJHQHUDOFRQVHQVXVWKDWWKHFURS
FRXOG EH WR FORVHU WR  PLOOLRQ
WRQV
7KH
J R Y H U Q P H Q W
ERG\KDV$%$5(
KDV IRUHFDVW
WKH RXWSXW WR
GHFOLQH WR 
PLOOLRQ
WRQV
IURPLWVHDUOLHU
IRUHFDVW
RI


PLOOLRQ

&RPPRGLWLHV 'HULYDWLYHV_

&2 9 (5  67 2 5 <
WRQV ZKLOH$:% /WG WKH PRQRSRO\
ZKHDW H[SRUWHU KDV IXUWKHU UHYLVHG
LWV IRUHFDVW RXWSXW WR EHWZHHQ  WR

$OO,QGLD5DLQIDOO$QRPDOLHV 

PLOOLRQWRQVIURPWKHHDUOLHUWR
PLOOLRQWRQV
3RVVLEOHLPSDFWVRQ,QGLD
*LYHQ WKHVH GHYHORSPHQWV DW WKH
JOREDO OHYHO OHW XV H[SORUH WKH
SRVVLELOLWLHV RI WKH DVVRFLDWLRQ DQG
LPSDFW RI (O 1LQR FRQGLWLRQV LQ WKH
,QGLDQFRQWH[W

'URXJKW \HDUV LQ ,QGLD KDYH EHHQ
VSHFLFDOO\OLQNHGWRDZDUPLQJRIWKH
ZHVWHUQVLGHRIWKH3DFLFGXULQJDQ
(O1LQRHYHQW+RZHYHURQO\VRPHRI
WKHSUHYLRXV(O1LQR\HDUVDUHQRWHG
WR KDYH FDXVHG WKH ,QGLDQ PRQVRRQ
WRIDLOZKLOHRWKHUVKDYHQRW7LOOWKH
VWKHUHZDVDVWURQJFRUUHODWLRQ
EHWZHHQ (O 1LQR DQG WKH ,QGLDQ
PRQVRRQ EXW WKDW FRUUHODWLRQ KDV
VLQFH GLPLQLVKHG FRQVLGHUDEO\ DQG
D\HDUZLWKRQHRIWKHVWURQJHVW
(O1LQRVRIWKHODVWFHQWXU\HQMR\HG
DPRQVRRQZLWKQRUPDOUDLQIDOO%XW
WKH UHODWLRQ ZDV HVWDEOLVKHG RQFH
DJDLQ ZKHQ WKH UHFHQW PRGHUDWH (O
1LQRVGXULQJWKH\HDUVDQG

6RXUFH,QGLDQ,QVWLWXWHRI7URSLFDO0HWHRURORJ\
(O1LQR<HDUVDQGWKHLU,PSDFWRQ
,QGLDQ0RQVRRQ
















0RGHUDWHWR6WURQJ
9HU\6WURQJ
:HDN
6WURQJ
0RGHUDWHWR6WURQJ
9HU\6WURQJ
6WURQJ
0RGHUDWHWR6WURQJ
:HDN
0RGHUDWHWR6WURQJ
1RHIIHFW
:HDN
1RHIIHFW
0RGHUDWHWR6WURQJ
0RGHUDWH

IDU DV WKLV \HDU LV FRQFHUQHG ZH


FDQ FRQGHQWO\ VD\ WKDW WKH NKDULI
VHDVRQKDVHVFDSHGWKHZUDWKRIWKH
(O1LQR%XWZKDWFRXOGEHWKHIDWH
RIWKH5DELVHDVRQHVSHFLDOO\LQFDVH
RI PDMRU FURSV OLNH ZKHDW PXVWDUG
DQGFKDQD"
/HWXVWDNHWKHFDVHRIZKHDW:KHDW
SURGXFWLRQ LQ ,QGLD    LV
LQFUHPHQWLQJ DW WKH FRPSRXQGHG

DYHUDJH JURZWK UDWH RI QHDUO\ 


IURP DERXW  PLOOLRQ WRQV LQ V
 ZHUH QRWHG WR KDYH FDXVHG
GURXJKWVLQ,QGLD
+RZHYHU WKLV \HDU ZKHQ FRPSDUHG WRZHOODERYHPLOOLRQWRQVLQWKH
WRDQG PRGHUDWH(O1LQR SUHVHQWGHFDGH+RZHYHUSURGXFWLRQ
\HDUV  WKH HPHUJHQFH RI FOHDU (O LQWKHUHFHQW\HDUVKDVEHHQKLWGXH
1LQR FRQGLWLRQV LV VRPHZKDW ODWH WR GURXJKW FRQGLWLRQV (VSHFLDOO\ LQ
LQ WKH VHDVRQ VWDUWLQJ 6HSWHPEHU WKH UHFHQW (O 1LQR \HDUV RI 
'XULQJ ERWK WKHVH WZR SUHFHGLQJ ZKHDWRXWSXW
\HDUVWKHZDUPLQJWUHQGKDGVWDUWHG ,QGLDGHFOLQHGWRPLOOLRQWRQV
DV HDUO\ DV LQ )HE0DU$SULO    PLOOLRQ WRQV DQG  PLOOLRQ
DQG LQ 0DU$SULO0D\   6R DV WRQVUHVSHFWLYHO\VLJQLFDQWO\OHVVHU
_&RPPRGLWLHV 'HULYDWLYHV

1RYHPEHU

&29(56725<
DJHGURSLQ:KHDWSURGXFWLRQLQ,QGLDGXULQJWKH(O1LQR\HDUV
WKDQWKHQRUPDORXWSXWRIDURXQG
PLOOLRQWRQV
$V HYLGHQW IURP WKH WDEOH EHORZ
GXULQJ  WKHUH ZDV DQ
LQFUHDVHLQDUHDXQGHUZKHDWE\
EXW \LHOG GHFOLQHG E\  FOHDUO\
LQGLFDWLQJ GURXJKW IDFWRU FDXVHG E\
(O1LQRGRZQSOD\HGWKHSURGXFWLRQ
+RZHYHU LQ WKH RWKHU WZR \HDUV
WKRXJKERWKWKHDUHDDQG\LHOGIDFWRUV
KDYHGHFOLQHGWKHGHFOLQHLQDUHDLV
OHVV VLJQLFDQW ZKHQ FRPSDUHG WR
WKH GHFOLQH LQ SURGXFWLRQ7KLV DOVR
OHDGVXVWRWKLQNWKDWUHGXFHG\LHOG
OHYHOV GXH WR GURXJKW KDV UHGXFHG

6RXUFH0LQLVWU\RI$JULFXOWXUH

WKHRXWSXW

1RYHPEHU

&RPPRGLWLHV 'HULYDWLYHV_

&2 9 (5  67 2 5 <



(O1LQR
FKDQJH FKDQJH FKDQJH
<HDUV
LQDUHD LQSURGQ LQ\LHOG













VWDWHV OLNH *XMDUDW 0DKDUDVKWUD

/DVW VHDVRQ   HYHQ WKRXJK


6RXUFH0LQLVWU\RI$JULFXOWXUH
PRQVRRQ
UDLQIDOO ZDV QRUPDO ZKHDW
SURGXFWLRQ LQ WKH FRXQWU\ ZDV QRW

SURGXFWLRQ RI ZKHDW LV H[SHFWHG


%XW ZLWK WKH FXUUHQW GHYHORSPHQWV
OLNH(O1LQRHPHUJLQJVWURQJO\DWWKH
FOLPDWLF IURQW FOLPDWH FRXOG SOD\ D
WUXDQWZLWKWKHZKHDWRXWSXWLQWKH

DEOH WR PDNH D EUHDN WKURXJK DQG


ZDV RQO\  PLOOLRQ WRQV RQO\
RQH PLOOLRQ WRQ DERYH WKH SUHYLRXV
VHDVRQV RXWSXW QRUPDO ZKHDW LV
PDLQO\ D LUULJDWHG FURS ZLWK DERXW

5DMDVWKDQ 03 %LKDU DQG 83 IRU


WKLV SXUSRVH ,W LV DOVR ORRNLQJ DW
SURGXFWLYLW\ LQFUHDVH E\  WR 
+HQFH IRU WKH FRPLQJ UDEL VHDVRQ
LQ  VRPH IDLU LPSURYHPHQW LQ

FRPLQJVHDVRQ'HVSLWHDOOPHDVXUHV
WDNHQE\WKHJRYHUQPHQWWRLPSURYH
SURGXFWLRQ LW LV KLJKO\ GRXEWIXO

 XQGHU LUULJDWLRQ  7KH VXGGHQ

ZKHWKHU ZKHDW RXWSXW FRXOG FURVV

LQFUHDVH LQ WHPSHUDWXUHV WR & 


LQ PDLQ ZKHDW JURZLQJ GXULQJ WKH
WUDGHUV WR FRSH ZLWK WKH GRPHVWLF
JUDLQ OOLQJ VWDJHV IURP -DQXDU\
VKRUWDJH
WR 0DUFK  OHG WR WKH GRZQIDOO LQ
\LHOG DQG LQ WXUQ SURGXFWLRQ $IWHU
,QRUGHUWRUHJDLQWKHORVWJURXQGVLQ
DOPRVW VL[ \HDUV WKH FRXQWU\ KDG
ZKHDW SURGXFWLRQ WKH JRYHUQPHQW
WRLPSRUWZKHDWGXHWRVKRUWVXSSO\
RI ,QGLD LV NHHQ RQ H[SDQGLQJ WKH
DQG GHFLHQF\ RI VWRFNV ,QGLD KDV
DUHD XQGHU FXOWLYDWLRQ DQG DOVR
EHFRPHRQHRIWKHODUJHVWLPSRUWHUV
IRFXVLQJ RQ LPSURYHPHQW RI \LHOG
RI ZKHDW LQ WKH ZRUOG ZLWK WKH
OHYHOV E\ SURYLGLQJ VXEVLGLHV DQG
JRYHUQPHQW FRQWUDFWLQJ LPSRUWV
LQFHQWLYHV 7KH FHQWUH LV SODQQLQJ
RI  PLOOLRQ WRQV WR UHSOHQLVK LWV
IRU DUHD H[SDQVLRQ EHWZHHQ  DQG
EXIIHU VWRFNV DQG DQRWKHU  PLOOLRQ
 PLOOLRQ KD DQG KDV LGHQWLHG
WRQV LV H[SHFWHG WR EH LPSRUWHG E\

WKH  PLOOLRQ WRQ PDUN LI WKH (O


1LQR FRQGLWLRQV SHUVLVW LQ WKH HDUO\
SDUWRI
,QWKHHYHQWRIWKHSUHYLRXV(O1LQRV
EHLQJDJUHDWH\HRSHQHUWRXVWKH
GHYHORSPHQW RI WKH FXUUHQW (O 1LQR
KDVWREHFORVHO\IROORZHG7KHUHLVD
QHHGIRUSROLF\PDNHUVVFLHQWLVWVDQG
IDUPHUVWRXQGHUVWDQGWKHEHKDYLRXU
RI WKLV SKHQRPHQRQ VR WKDW WKH\
GHYLVH VWUDWHJLHV WR FRSH ZLWK LWV
SRWHQWLDO LPSDFW RQ DJULFXOWXUH DQG
IRRGVXSSO\

)RU%DQQHU$GYHUWLVHPHQWVLQ
WUDGLQJFKDUWVVHFWLRQ
ZULWHWR
VDOHV#FRPPRGLW\LQGLDFRP
_&RPPRGLWLHV 'HULYDWLYHV

1RYHPEHU

)DFH)DFH

5HJXODWHGPDUNHWVWKDWDUH
IXOO\RSHQWRFURVVERUGHU
LQYHVWPHQWH[KLELW(FRQRPLHV
RI6FDOHDQG1HWZRUN(IIHFWV
0U-RKQ3'DYLGVRQ0'DQG&KLHI
&RUSRUDWH'HYHORSPHQW2IFHU&0(
-RKQ 3 'DYLGVRQ ZKR VHUYHG D VWLQW RI WHQXUH LQ 0RUJDQ 6WDQOH\  &R
DQG&0(FUHGLWVWRKLPVHOIRIVFDOLQJ&KLFDJR0HUFDQWLOH([FKDQJHWRQHZ

0U-RKQ3'DYLGVRQ

KHLJKWV,WLVGXULQJKLVWHQXUHZHKDYHVHHQWKHPHUJHURI&0(DQG&%R7
WRIRUPWKHVLQJOHODUJHVWJOREDOFRPPRGLW\WUDGLQJSODWIRUP)ROORZLQJLV
WKHH[FHUSWVRIWKHLQWHUYLHZ
&RPPHQW RQ WKH SHUIRUPDQFHV RI ,QGLDQ FRPPRGLW\ 'R \RX VHH DQ\ VWUXFWXUDO DQG IXQFWLRQDO DZV LQ
H[FKDQJHV"
WKH FXUUHQW HVWDEOLVKPHQWV RI ,QGLDQ FRPPRGLW\
7KH ,QGLDQ FRPPRGLW\ IXWXUHV H[FKDQJHV KDYH H[FKDQJHV",I\HVJLYH\RXUVXJJHVWLRQVIRULPSURYLQJ
H[SHULHQFHGUHPDUNDEOHJURZWKVLQFHWKHLUHVWDEOLVKPHQW WKHP"
DIHZVKRUW\HDUVDJR,WKLQNWKLVLVUHHFWLYHRIWKH ,WZRXOGEHHQWLUHO\LQDSSURSULDWHIRUPHWRFKDUDFWHUL]H
H[FLWLQJJURZWKLQWKH,QGLDQHFRQRP\DQGWKHFHQWXULHV DVWUXFWXUDORUIXQFWLRQDOHOHPHQWRIWKH,QGLDQPDUNHW
ORQJKLVWRU\RIFRPPRGLWLHVWUDGLQJLQ,QGLD
DVDDZ7KHVHPDUNHWVKDYHEHHQGHVLJQHGE\WKH
,QGLDQWUDGLQJDQGLQYHVWPHQWFRPPXQLW\DQGDSSURYHG
:KHUH GR \RX VHH WKH HIFLHQF\ YROXPHV OLTXLGLW\ E\WKH,QGLDQUHJXODWRU\DXWKRULWLHVWRPHHWWKHXQLTXH
LQIUDVWUXFWXUHWHFKQRORJ\DQGWUDQVSDUHQF\RI,QGLDQ QHHGVRIWKH,QGLDQPDUNHWSODFH,I,ZHUHWRFRPPHQG
FRPPRGLW\ H[FKDQJHV DV FRPSDUHG WR WKRVH LQ WKH WRWKHDSSURSULDWHSDUWLHVDIXQFWLRQIRUFRQVLGHUDWLRQ
GHYHORSHGFRXQWULHV"
LWZRXOGEHPDUNHWPDNLQJ$V\RXNQRZIURPSHUVRQDO
&HUWDLQO\ RQH PXVW H[SUHVV DGPLUDWLRQ IRU WKH
LQIUDVWUXFWXUH DQG WHFKQRORJ\ WKHVH ,QGLDQ H[FKDQJHV
KDYH GHYHORSHG DQG LPSOHPHQWHG  7KLV VKRXOG QRW
FRPH DV D VXUSULVH WR DQ\RQH JLYHQ WKH WUHPHQGRXV
VXFFHVVRIWKHVRIWZDUHGHYHORSPHQWEXVLQHVVLQ,QGLD

H[SHULHQFHPDUNHWPDNHUVKDYHDYHU\LPSRUWDQWUROH
ERWKKLVWRULFDOO\DQGDWSUHVHQWLQWKHPDLQWHQDQFHRI
GHHS OLTXLG PDUNHWV DW &0(  0DUNHW PDNLQJ ZKLFK ,
DPFHUWDLQZRXOGKDYHDXQLTXHVWUXFWXUHDWDQ,QGLDQ

H[FKDQJH PD\ EH ZRUWK\ RI H[DPLQDWLRQ SDUWLFXODUO\


&RPSDULVRQV RQ YROXPHV OLTXLGLW\ DQG HIFLHQF\ ZLWK DVH[FKDQJHVLQ,QGLDPRYHRQWRWKHJOREDOVWDJH
GHYHORSHG FRXQWULHV DUH FKDOOHQJLQJ JLYHQ WKH PXFK
GLIIHUHQW QRWLRQDO VL]H RI FRPPRGLW\ IXWXUHV FRQWUDFWV
LQ,QGLD
1RYHPEHU

&RPPRGLWLHV 'HULYDWLYHV_

)DFH)DFH
:K\GR\RXYLHZ,QGLDQFRPPRGLW\H[FKDQJHVDVD
RXUPDUNHWVGLUHFWO\:HWU\WRNHHSLQFRPPXQLFDWLRQ
SUHIHUUHGGHVWLQDWLRQRILQYHVWPHQW"
ZLWKDOOWKHVHSDUWLHVWRXQGHUVWDQGWKHLUQHHGVDQGWKH
$W &0( RXU SROLF\ LV WKDW ZH GR QRW FRPPHQW RQ FKDUDFWHULVWLFVRIWKHPDUNHWVKHUH
LQYHVWPHQWVPHUJHUVRUDFTXLVLWLRQV
,QZKDWZD\VDQGPHDQVFRXOG&0(WKHODUJHVWIXWXUHV
&RPPHQW RQ WKH LQYHVWPHQW FOLPDWH IRU IRUHLJQ H[FKDQJH LQ WKH 86 LQYROYH LQ GHYHORSLQJ ,QGLDQ
SDUWLFLSDWLRQLQ,QGLDQFRPPRGLW\PDUNHWV"
FRPPRGLW\PDUNHWV"
$W WKH WLPH RI P\ YLVLW WR ,QGLD LQ 6HSWHPEHU WKH
UHJXODWRU\ DXWKRULWLHV KDG QRW SURYLGHG JXLGDQFH RQ
WKH DSSURSULDWH OHYHO RI IRUHLJQ LQYHVWPHQW LQ ,QGLDQ
FRPPRGLW\H[FKDQJHVHLWKHURQDQDJJUHJDWHRUVLQJOH

:H GR QRW \HW NQRZ WKH DQVZHU WR WKDW TXHVWLRQ  :H
NQRZ,QGLDLVDG\QDPLFPDUNHWSODFHZLWKDWUHPHQGRXV
EDVH RI LQWHOOHFWXDO FDSLWDO  5LJKW QRZ ZH DUH
JDWKHULQJ LQIRUPDWLRQ WU\LQJ WR NHHS RSHQ DOO OLQHV RI

LQYHVWPHQW OHYHO  :LWK UHVSHFW WR DFFHVV WR ,QGLDQ FRPPXQLFDWLRQDQGWDNLQJDVWUDWHJLFORQJWHUPYLHZ


FRPPRGLW\IXWXUHVFRQWUDFWVE\IRUHLJQSDUWLFLSDQWVDV
, XQGHUVWDQG LW WKLV LV QRW \HW VRPHWKLQJ ZLWK ZKLFK &RPPHQWRQWKHSHUFHSWLRQRIJOREDOLQYHVWRUVWRZDUGV
WKH )RUZDUG 0DUNHWV &RPPLVVLRQ LV FRPIRUWDEOH  0\ ,QGLDQ FRPPRGLW\ H[FKDQJHV DQG WKHLU LQWHUHVWV LQ
SHUVRQDOYLHZLVWKDWJLYHQWKHUDSLGJURZWKH[SHULHQFHG SDUWLFLSDWLRQ DV KDV EHHQ VHHQ LQ WKH ,QGLDQ HTXLW\
E\,QGLDQFRPPRGLW\IXWXUHVH[FKDQJHVDQGWKHJOREDO PDUNHWVRQFHWKHPDUNHWVKDYHRSHQHG"
IRFXVRQFRPPRGLWLHVDVDQDVVHWFODVVLWVHHPVOLNHO\ $V,VDLGEHIRUHWKHUHDSSHDUVWREHLQWHUHVW:KHWKHU
WKHUH ZLOO EH LQYHVWRU GHPDQG RQFH WKH UHJXODWRU LV WKDW LQWHUHVW ZLOO PDQLIHVW LWVHOI LQ WKH VDPH PDQQHU
FRPIRUWDEOH
DVKDVEHHQVHHQZLWKWKH,QGLDQHTXLW\PDUNHWVLVQRW
&RPPHQWRQWKHYDULRXVRSWLRQVWKDW&0(LVZRUNLQJ VRPHWKLQJ,DPHTXLSSHGWRVSHFXODWHDERXW
RXWWRJLYHDIHHORILWVSUHVHQFHLQ,QGLDQFRPPRGLW\
PDUNHWV"
&RPPHQW RQ GHYHORSPHQWV RQ WKH FRQVROLGDWLRQV RI
&0( KDV JRRG UHODWLRQV ZLWK WKH WKUHH QDWLRQDO JOREDOWUDGLQJSODWIRUPV"
FRPPRGLWLHV H[FKDQJHV RI ,QGLD DV ZHOO DV ZLWK WKH (FRQRPLVWV KDYH ORQJ UHFRJQL]HG WKDW FDSLWDO PDUNHWV
1DWLRQDO6WRFN([FKDQJHDQGWKH%RPED\6WRFN([FKDQJH ZKLFK DUH IXOO\ RSHQ WR FURVVERUGHU LQYHVWPHQW DQG
:HKDYHERWKIRUPDODQGLQIRUPDOPHHWLQJVIURPWLPH WKDWDUHSUXGHQWO\DQGDSSURSULDWHO\UHJXODWHGH[KLELW
WRWLPHWRGLVFXVVGHYHORSPHQWVLQERWKRXUPDUNHWVDQG PDQ\ HFRQRPLHV RI VFDOH DQG QHWZRUN HIIHFWV  ,W
ZLWKERWKRXUWHFKQRORJLHV$QXPEHURIDIOLDWHVRIRXU LVUHDVRQDEOHWRH[SHFWFRQVROLGDWLRQLQVXFKDPDUNHW
FOHDULQJPHPEHUUPVGREXVLQHVVLQ,QGLDDQGDYHU\ HQYLURQPHQW  +RZHYHU &0( GRHV QRW FRPPHQW RQ
OLPLWHG QXPEHU RI ,QGLDQ LQVWLWXWLRQDO LQYHVWRUV XWLOL]H VSHFLFGHYHORSPHQWVLQWKDWUHJDUG

86WRJHWELJJHVWELRGLHVHOIDFLOLW\
86LVRQLWVZD\WRJHWWKHELJJHVWELRGLHVHOSURGXFWLRQIDFLOLW\7KHELRGLHVHOSODQWLVEHLQJFRQVWUXFWHG
E\WKH6HDWWOH%LRGLHVHOWKHVXEVLGLDU\RI,PSHULXP5HQHZDEOHV,QF7KHELRGLHVHOSODQWLVEHLQJFRQ
VWUXFWHGDWWKH3RUWRI*UD\V+DUERXUEHWZHHQ$EDUGHHQDQG+RTXLDP7KHSODWFRVWLVHVWLPDWHGDW
PLOOLRQ7KHELRGLHVHOSODQWLVVDLGWRSURGXFHXSWRPLOOLRQJDOORQVRIELRGLHVHOSHUDQQXPIURP
VR\DEHDQFDQRODRLODQGRWKHUV%LRGLHVHOSURGXFWLRQIURPWKLVSODQWLVH[SHFWHGWRVWDUWIURPWKHPLGRI
QH[W\HDU
_&RPPRGLWLHV 'HULYDWLYHV

1RYHPEHU

$UWLFOH

&RPPRGLW\([FKDQJHV/D\LQJWKHURDGPDSIRU

1DWLRQDO&RPPRQ0DUNHW
,QGLDQ FRPPRGLW\ PDUNHWV KDYH DVWKHSULFHVGRQRWUHDOO\UHHFWWKH
KLVWRULFDOO\ EHHQ SODJXHG E\ WUXHHFRQRPLFYDOXHRIWKHSURGXFWV
LQHIFLHQFLHVDVLQGLFDWHGE\WKHODFN DQG DIIHFW WKH JOREDOL]DWLRQ HIIRUWV
RIUHVSRQVHRULQDSSURSULDWHUHVSRQVH RIWKHHFRQRPLHV
WRWKHIXQGDPHQWDOV7KLVFRXOGEH
DWWULEXWHGWRWKHODFNRILQIRUPDWLRQ 7KH UHVXOWV RI D VLPSOH FRUUHODWLRQ
DERXWIXQGDPHQWDOVIRUWKHSK\VLFDO DQDO\VLV SURGXFHG LQ WDEOH  FOHDUO\

96KXQPXJDP&KLHI(FRQRPLVW0&;

PDUNHW SOD\HUV RU WKH GHDOV ZKLFK LQGLFDWHG WKDW VHOHFWHG PDUNHWV IRU
KDSSHQ ODUJHO\ EDVHG RQ LQFRUUHFW WKH NH\ HVVHQWLDO FRPPRGLWLHV KDG
SDUWLDO LQIRUPDWLRQ DYDLODEOH RQO\ VKRZQ QR RU ORZ SULFH UHODWLRQVKLS
ZLWK D IHZ SOD\HUV LQ WKH PDUNHWV SULRU WR WKH HVWDEOLVKPHQW RI
6XFK VLWXDWLRQV LQ WKH PDUNHW DW DOO WKH IXWXUHV PDUNHWV  'XH WR WKH
WKHWLPHVKHOSWKHPLGGOHPHQLQWKH JHRJUDSKLFDO GLVWDQFHV EHWZHHQ
YDOXHFKDLQWRHDUQKHIW\PDUJLQVDW GLIIHUHQW PDUNHWV DQG WKH SRRU
WKH FRVW RI WKH SURGXFHUV DQG HQG FRPPXQLFDWLRQ FKDQQHOV EHWZHHQ
FRQVXPHUVLQWKHPDUNHWFKDQQHO YDULRXV PDUNHW SDUWLFLSDQWV ZKR FRQVXPHUV PDUNHW RU YLFHYHUVD
LQ PRVW FDVHV IXQFWLRQHG DV LI WKH\ +HQFH LQ WKH VSRW PDUNHWV RI WKH
7KLVLVPDLQO\GXHWRODFNRIHIIHFWLYH UHPDLQHG LQ D YDFXXP LH SULFHV SDVW WKLV KDG OHG WR D VLWXDWLRQ
SDUWLFLSDWLRQRIYDULRXVVWDNHKROGHUV ZHUH GHWHUPLQHG E\ D KDQGIXO RI
ZLWK DFFXUDWH LQIRUPDWLRQ DERXW WUDGHUV ZLWK D SDUWLDO NQRZOHGJH
WKH IXQGDPHQWDOV LQ WKH PDUNHWV WR DERXW WKH PDUNHW IXQGDPHQWDOV
GHWHUPLQHWKHHQGSULFHV7KLVQHDU FRYHULQJDOLPLWHGJHRJUDSKLFDODUHD

ZKHUHLQ WKH PLGGOHPHQ E\ YLUWXH

EHWZHHQWKHP,QHIFLHQFLHVFUHDWHG WKHUH ZDV D SRRU SULFH UHODWLRQVKLS


E\ XQFRRUGLQDWHG YDOXH FKDLQ LQ DPRQJ WKH PDUNHWV DV LQ WKH FDVH
WKH PDUNHWV ZRXOG GHWHU DOO WKH RI ZKHDW &KDQD DQG 8UDG  ,W ZDV
LQYHVWPHQWHIIRUWVLQWKHYDOXHFKDLQ FOHDUO\LQGLFDWHGE\WKHQLOYDOXHRI
GXH WR WKH XQFHUWDLQW\ LQYROYHG LQ WKHFRUUHODWLRQFRHIFLHQWVEHWZHHQ
UHWXUQV)XUWKHUVXFKLQHIFLHQFLHV VRPH RI WKH PDUNHWV PHDQLQJ WKDW
DOVR DIIHFW WKH FRPSHWLWLYHQHVV RI RYHUVXSSO\ LQ D SURGXFHUV PDUNHW
SURGXFWLYH DFWLYLWLHV LQ DQ HFRQRP\ RIWHQ KDG QR RU OLWWOH HIIHFW RQ WKH

RQ WKH 0&; HOHFWURQLF SODWIRUP

RI WKHLU SDUWLDO NQRZOHGJH DERXW


PDUNHW IXQGDPHQWDOV UHPDLQHG
DV WKH SULFH VHWWHUV WR WKHLU
LPSHUIHFW PDUNHW VLWXDWLRQ FRXOG ,QWKHWUDGLWLRQDOPDUNHWLQJV\VWHP PD[LPXP VHOI DGYDQWDJH  LJQRULQJ
DOVRDULVHGXHWRODFNRILQWHUDFWLRQ SDUWLFXODUO\ZLWKUHVSHFWWRSURGXFWV WKH RYHUDOO IXQGDPHQWDOV DQG RWKHU
DPRQJ WKH PDUNHWV DQG WKH SOD\HUV ZKLFKZHUHSURGXFHGLQIHZSRFNHWV VWDNHKROGHUVLQWKHPDUNHW
GXH WR WKH OHQJWK RI WKH YDOXH RIWKHFRXQWU\DQGZKRVHFRQVXPHUV
FKDLQ RU WKH JHRJUDSKLFDO GLVWDQFHV DUH VSUHDG WKURXJKRXW WKH FRXQWU\ 7KH LQWURGXFWLRQ RI RQOLQH IXWXUHV

1RYHPEHU

LQ WKHVH FRPPRGLWLHV KDG OHG WR


LPSURYHG LQWHJUDWLRQ RI YDULRXV
PDUNHWVLQUHVSRQVHWRWKHLQFUHDVHG
WUDQVSDUHQF\ EURXJKW DERXW E\ WKH
QDWLRQDO OHYHO IXWXUHV H[FKDQJHV
WUDGLQJ RQ DQ HOHFWURQLF SODWIRUP
7KLV ZDV PDLQO\ GXH WR WKH YDULRXV
&RPPRGLWLHV 'HULYDWLYHV_

$UWLFOH
PRGHV WKURXJK ZKLFK SULFHV ZHUH DQG FRQVXPHUV LQ WKHLU PRYH IURP
GLVVHPLQDWHG VXFK DV WUDGHU ZRUN WKH QDWLRQDO PDUNHWV WR WKH JOREDO
VWDWLRQV DFFHVVLEOH WR IDUPHUV DQG PDUNHWVDVVHOOHUVDQGEX\HUV7KLV
RWKHUSK\VLFDOPDUNHWSOD\HUVWLFNHU LV EURXJKW DERXW E\ WKH QDWLRQDO
ERDUGV LQVWDOOHG LQ YDULRXV PDUNHW RQOLQHH[FKDQJHVVXFKDVWKDWRI0&;
\DUGV SULFHV SULQWHG E\ UHJLRQDO E\WZRZD\VZKLFKZHUH

RI JOREDO FRQWUDFWV DW WKH QDWLRQDO


H[FKDQJHV DQGRU VHWWOLQJ WKHP
DW EHQFKPDUN SULFHV DUULYHG DW
EHQFKPDUNH[FKDQJHVZRXOGKHOSWKH

GLVVHPLQDWHG WR PDUNHWV FORVH WR FRPPRGLWLHV


WKH HQGXVHUV RI WKH FRPPRGLWLHV
HPSRZHULQJ WKHP DJDLQVW DQ\ :KLOH DGRSWLRQ RI H[RWLF FRQWUDFWV
H[SORLWDWLRQ
E\
PLGGOHPHQ IURP EHQFKPDUN H[FKDQJHV ZRXOG

([LVWHQFHRIIXWXUHVH[FKDQJHVKDYLQJ

XQGHUO\LQJ FRPPRGLW\ PDUNHWV LQ D


VPRRWK WUDQVLWLRQ WRZDUGV D PDUNHW
,QWURGXFWLRQ
RI
H[RWLF ZLWK RSHQ ERUGHUV  7KH SURFHVV LV
DQG QDWLRQDO GDLOLHV DQG WKH VSRW  
DQG H[FKDQJH GLVFRYHUHG IXWXUHV FRQWUDFWV IURP EHQFKPDUN JOREDO PDGH VPRRWKHU E\ WKH FRPPRGLW\
SULFHV DQG WKH VDPH SULFHV FDUULHG H[FKDQJHVLQNH\JOREDOFRPPRGLWLHV H[FKDQJHV WKURXJK WKHLU WUDQVSDUHQW
,QWURGXFWLRQ RI GRPHVWLF DQGHIFLHQWSULFHGLVFRYHU\SURFHVV
E\ WKH HOHFWURQLF PHGLD LQFOXGLQJ  
WKHWHOHYLVLRQDQGLQWHUQHW,QRWKHU FRQWUDFWV WKDW DUH VHWWOHG DW SULFHV ZKLFKLQYROYHVDOOWKHVWDNHKROGHUVRI
ZRUGV WKH SULFH LQIRUPDWLRQ LQ WKH GLVFRYHUHG LQ JOREDO EHQFKPDUN WKHHFRV\VWHP
SURGXFHUV PDUNHWV ZDV HIIHFWLYHO\ H[FKDQJHV LQ JOREDOO\ WUDGHG
FORVH OLQNDJHV ZLWK WKH SK\VLFDO
PDUNHWV ZRXOG QRW RQO\ KHOS LQ
QDWLRQDO LQWHJUDWLRQ RI WKH GRPHVWLF

6XVWDLQHG DYDLODELOLW\ RI HIFLHQWO\ EH KHOSIXO IRU WKH DFWXDO LPSRUWHUV PDUNHWVEXWDOVRKHOSLQWKHVPRRWK
GLVFRYHUHG SULFHV ZRXOG LQFUHDVH H[SRUWHUVRUWKHFRQVXPHUVRIJOREDO WUDQVLWLRQ RI FRXQWULHV WRZDUGV RSHQ
WKH HIFLHQF\ RI WKH YDOXH FKDLQ FRPPRGLWLHV WR FRYHU WKHLU PDUNHW ERUGHUV 7KLV SURFHVV LV SULPDULO\
E\ UHGXFLQJ WKH UHGXQGDQW DQG H[SRVXUH ULVN DQG IRUH[ ULVN E\ DFKLHYHG E\ WKH VPRRWK RZ RI
UHSHWLWLYH LQWHUPHGLDULHV DQG E\ KHGJLQJ RU DUELWUDJLQJ DGRSWLRQ RI LQIRUPDWLRQRQIXQGDPHQWDOVUHHFWHG
VTXHH]LQJ WKHLU PDUJLQV WR UHHFW LQWHUQDWLRQDO SULFHV IRU FRQWUDFWV LQ
RWKHU FRPPRGLWLHV WUDGHG JOREDOO\
WKHLUHFRQRPLFYDOXHDGGLWLRQ
KHOSVLQHIFLHQWSULFHGLVFRYHU\DIWHU
7DEOH,QWHJUDWLRQRI1DWLRQDO
IDFWRULQJ LQ UHOHYDQW GHYHORSPHQWV
0DUNHWVLQ.H\(VVHQWLDO&RPPRGLWLHV LQJOREDOPDUNHWVHVSHFLDOO\LQWKRVH
5DQJHRI&RUUHODWLRQ FRPPRGLWLHVZKHUHSULFHVJHWDIIHFWHG
&RPPRGLW\ 3UH0&; 3RVW0&;
E\LQWHUQDWLRQDOIXQGDPHQWDOV3ULRU
IXWXUHV
IXWXUHV
WR OLEHUDOL]DWLRQ FRPPRGLW\ PDUNHWV

7XU


ZHUH LQVXODWHG E\ YDULRXV WDULII DQG
&KDQD
 
8UDG
  QRQWDULII EDUULHUV DQG GLVWRUWHG
:KHDW
 
E\ YDULRXV VXEVLGLHV DQG VXSSRUW
6RXUFH$JPDUNQHWVSRWSULFHV
PHDVXUHV
,QWHJUDWLRQZLWKJOREDOPDUNHWV

LQ WHUPV RI WKH WUDGHV FRQGXFWHG E\


WKH PHPEHUV RI WKH H[FKDQJHV RU
WKHLU FOLHQWV LQ WKH WUDGHU WHUPLQDOV
DQG WKH UHVXOWDQW SULFHV WKDW DUH
DYDLODEOH WKURXJK YDULRXV PRGHV RI
FRPPXQLFDWLRQ FKDQQHOV LQFOXGLQJ
WLFNHUVWHOHYLVLRQFKDQQHOVDQGSULQW
PHGLD(IIHFWLYHQHVVRIWKHSURFHVVRI
GLVVHPLQDWLRQRIH[FKDQJHJHQHUDWHG
LQIRUPDWLRQ RQ FRPPRGLWLHV DQG WKH
HIFLHQF\ DW ZKLFK WKHVH SULFHV DUH

DUULYHGDWZRXOGGHWHUPLQHWKHSDFH
:LWK WKH RSHQLQJ XS RI WKH ERUGHUV RI LQWHJUDWLRQ RI YDULRXV PDUNHWV
VLQFH $SULO  ,QGLDQ PDUNHWV IRU PXOWLSOH FRPPRGLWLHV VSUHDG

:LWKHFRQRPLFOLEHUDOL]DWLRQDQGLWV EHFDPH YXOQHUDEOH WR PRYHPHQWV WKURXJKRXWWKHFRXQWU\


ORJLFDO FRUROODU\ RI JOREDOL]DWLRQ LQ WKH JOREDO FRPPRGLW\ PDUNHWV WR
'LVFODLPHU
IXWXUHV PDUNHWV FDQ SURYLGH D WKH H[WHQW WKDW WKH WDULII EDUULHUV
7KHYLHZVH[SUHVVHGDUHSHUVRQDODQGFRXOG
VPRRWK WUDQVLWLRQ WR WKH SURGXFHUV SURWHFWWKHP+RZHYHULQWURGXFWLRQ
EHLPSUHVVLRQLVWLFDQGPD\QRWQHFHVVDULO\
UHHFWWKHYLHZVRI0&;

_&RPPRGLWLHV 'HULYDWLYHV

1RYHPEHU

$UWLFOH

/RQJ7HUP)XWXUHV&RQWUDFWV,Q$JULFXOWXUDO
3URGXFWV

6XUDEKD3XWKL\DYHHWWLO(FRQRPLVW1&'(;

)XWXUHV FRQWUDFWV DUH DPRQJVW WKDQOHDYHLWWRWKHIRUFHVRIWKHVSRW


WKH ROGHVW H[LVWLQJ GHULYDWLYHV PDUNHW
LQVWUXPHQWVXVHGWRKHGJHULVN)LUVW
LWKHOSVLQSULFHGLVFRYHU\EH\RQGWKH
VSRW PDUNHWV DQG WKH OLPLWHG WLPH
KRUL]RQRIVSRWPDUNHWV6HFRQGO\DV
OLTXLG LQVWUXPHQWV IXWXUHV FRQWUDFWV

,QWKHDEVHQFHRIORQJWHUPFRQWUDFWV
KHGJHUV DUH IRUFHG WR HQWHU LQWR
D VHULHV RI VPDOO WHUP FRQWUDFWV
7RZDUGV WKH HQG RI D VKRUWWHUP

DUHXVHIXOWRKHGJHSULFHULVN

FRQWUDFWWKHKHGJHUUROOVRYHULQWR

DQRWKHU FRQWUDFW E\ RIIVHWWLQJ KLV


%RWK RI WKHVH IXQFWLRQV DUH RI YLWDO SRVLWLRQLQWKHFXUUHQWO\KHOGFRQWUDFW
LPSRUWDQFH LQ WRGD\V IDVW FKDQJLQJ DQG HQWHULQJ LQWR DQRWKHU FRQWUDFW
ZRUOG 8QIRUWXQDWHO\ WKHUH LV D IRU DQRWKHU WHUP RI WLPH 7KH ULVN
DZHG UHDVRQLQJ ZKLFK SUHVXPHV LQFLGHQFH SHULRG LV WKXV EURNHQ XS
DQ\ SULFH ULVH RU IDOO WR EH D GLUHFW LQWRVPDOOWHUPVDQGFRYHUHGE\WKH
FRQVHTXHQFH RI IXWXUHV WUDGH UDWKHU VKRUWWHUP FRQWUDFWV 7KH QHJDWLYH
WKDQ D V\PSWRP RI D PRUH GHHS WR WKLV VWUDWHJ\ LV WKH FRVW RI UROO
URRWHG SUREOHP WKDW RI D VKRUWIDOO RYHU ZKLFK WKH KHGJHU KDV WR EHDU EHFDXVH IXWXUHV SULFHV IDFWRU LQ QRW
RUDJOXWLQVXSSO\RIWKHXQGHUO\LQJ /RQJWHUPFRQWUDFWVDYRLGLQHIFLHQW RQO\ KLVWRULF HYHQWV EXW DOVR PDUNHW
H[SHFWDWLRQV RI WKH IXWXUH )XWXUHV
FRPPRGLW\ /RQJ WHUP FRQWUDFWV RU UROORYHUFRVWV
SULFHV DQWLFLSDWH WKH SULFH RI WKH
IRUWKDWPDWWHUDQ\IXWXUHVFRQWUDFW
DUHRIWHQDFFXVHGRIEHLQJWKHFDXVH 7KHUH LV DQRWKHU SRVLWLYH UROH WKDW
DQGQRWWKHV\PSWRPRIFRQGLWLRQVLQ ORQJWHUP FRQWUDFWV SOD\ DQG WKDW LV
WKHPDUNHW
RISULFHGLVFRYHU\LQWKHIDUPRQWKV
)XWXUHV WUDGLQJ  IXWXUH SULFHV FDQ
$GYDQWDJHV RI ORQJWHUP IXWXUHV SURYLGH DQ HIIHFWLYH VROXWLRQ WR WKLV
FRQWUDFWV
FRQXQGUXP 7KH\ DUH PRUH UHOLDEOH

FRPPRGLW\DWWKHWLPHRIH[SLU\DQG
FKDQJH DFFRUGLQJ WR WKH LQIRUPDWLRQ
UHYHDOHGWRWKHPDUNHW,WLVDJHQHUDO
NQRZQ IDFW WKDW GXULQJ WKH KDUYHVW
VHDVRQ WKH SULFHV IDOO DV D UHVXOW
RI LQFUHDVHG VXSSO\  2Q WKH RWKHU

7KHPRVWLPSRUWDQWJURXSRISHRSOH WKDQ KLVWRULF GDWD ZKHQ LW FRPHV WR KDQG LI WKH PDUNHW H[SHFWV FURSV
WRIDLOSULFHVJRXS$QDJULFXOWXULVW
ZKR ZLOO EHQHW IURP ORQJWHUP FURSVRZLQJGHFLVLRQV
ZRXOG OLNH WR GHFLGH RQ ZKLFK FURSV
FRQWUDFWV LV WKH KHGJHUV 7KHVH DUH
WKH SHRSOH ZKR QG WKHPVHOYHV LOO ,W VKRXOG EH SRVVLEOH IRU IDUPHUV WR WR JURZ DIWHU KDYLQJ FRQVLGHUHG WKH
HTXLSSHGWREHDUSULFHULVN*HQHUDOO\ WDNHDORQJYLHZRISULFHVZLWKORQJHU SULFHVLJQDOVLQWKHIXWXUHVPDUNHW$
WKLVJURXSFRPSULVHVRISURGXFHUVZKR GXUDWLRQ FRQWUDFWV DQG GHFLGH RQ FRQWUDFWZKLFKFRYHUVDGXUDWLRQRI
ZRXOGUDWKHUHQWHULQWRFRQWUDFWVDQG WKH EHVW WLPH WR VHOO KLV DJULFXOWXUDO RUPRQWKVFDQLQGLFDWHSULFHV
[WKHSULFHIRUWKHLUSURGXFHUDWKHU SURGXFH LQ WKH PDUNHW 7KLV LV ZKLFK DUH HVWLPDWHG WR SUHYDLO LQ
WKRVH PRQWKV ,W KHOSV WKH IDUPHU
1RYHPEHU

&RPPRGLWLHV 'HULYDWLYHV_

$UWLFOH
PDNH D EHWWHU FURSSLQJ SDWWHUQ VKRUW VXSSO\ DQG ULVLQJ SULFHV WKDW H[FKDQJH PDNHV LW SURWV IURP WKH
GHFLVLRQ VLQFH LW VLJQDOV ZKLFK FURSV ORQJ WHUP PDUNHWV ZLOO EH YLHZHG YROXPHVJHQHUDWHGDQGWKHUHIRUHIRU
ZRXOG JHW WKH EHVW SULFH UHDOL]DWLRQ ZLWK VXVSLFLRQ ,Q ,QGLD PRVW RI DQH[FKDQJHWKHYROXPHVJHQHUDWHG
LQWKHFRPLQJFURSVHDVRQ
WKH DJULFXOWXUDO FRQWUDFWV DUH VKRUW RQ WKH ORQJWHUP FRQWUDFWV DUH MXVW
WHUP LQ QDWXUH DQG H[WHQG RQO\ IRU DVJRRGDVYROXPHVJHQHUDWHGRQWKH
8QOLNH
SRSXODU
SHUFHSWLRQ WZR WR WKUHH PRQWKV /RQJWHUP VKRUWWHUPFRQWUDFWV
VSHFXODWRUV HVSHFLDOO\ WKRVH ZLWK D FRQWUDFWV DUH QRW YLHZHG IDYRUDEO\ ,QIDFWJHQHUDOO\ORQJWHUPFRQWUDFWV
FHUWDLQOHYHORILQIRUPDWLRQPD\DOVR VLQFH LW LV IHOW WKDW WKH SURGXFHUV DUH LOOLTXLG LQ WKH HDUO\ PRQWK DQG
SUHIHU ORQJWHUP FRQWUDFWV /RQJHU KROG EDFN SURGXFH IURP WKH PDUNHW JDLQLQOLTXLGLW\RQO\WRZDUGVWKHHQG
WKH GXUDWLRQ RI WKH FRQWUDFW EHWWHU VSHFXODWLQJ RQ KLJKHU SULFH JDLQV LQ RILWVWHUPZKHQLQFUHDVHGYRODWLOLW\
DUHWKHFKDQFHVWKDWWKH\ZLOOEHQHW WKH IXWXUH 7KLV ZLOO KDSSHQ LI WKH DWWUDFWV PRUH SOD\HUV DQG WKHUHIRUH
IURPWKHLULQIRUPDWLRQEHLQJUHYHDOHG VKRUWWHUPSULFHHODVWLFLW\LVJUHDWHU LQFUHDVHV RSHQ LQWHUHVW $ FXUVRU\
WKDQWKHORQJWHUPSULFHHODVWLFLW\RI ORRN DW WKH IXWXUHV FRQWUDFWV WUDGHG
RQ YDULRXV H[FKDQJHV ZLOO VKRZ WKDW
GHPDQG
WKH PRVW OLTXLG FRQWUDFWV DUH WKH
$W WKH VDPH WLPH ORQJWHUP
FRQWUDFWV DUH EHQHFLDO WR WKH QRQ *HQHUDOO\ DQ LQFUHDVH LQ SULFH ZLOO QHDU PRQWK FRQWUDFWV ZKLFK ZLOO
WUDGLQJ FRPPXQLW\ WRR /RQJWHUP GLVFRXUDJHFRQVXPSWLRQ,IWKHVKRUW EH WKH UVW WR H[SLUH 9ROXPHV DUH
EHIRUHWKHFRQWUDFWH[SLUHV

FRQWUDFWV ELQG EX\HUV DQG VHOOHUV WHUPSULFHHODVWLFLW\LVOHVVWKDQWKH FRQFHQWUDWHGKLJKHVWLQWKHVKRUWWHUP


LQWR D ELODWHUDO PRQRSRO\ GXULQJ WKH ORQJWHUP HODVWLFLW\ LQ D VLWXDWLRQ FRQWUDFWVOHDYLQJORQJWHUPFRQWUDFWV
WHUPRIWKHFRQWUDFW7KLVLPSDUWVD RI ULVLQJ SULFHV SURGXFHUV ZLOO LOOLTXLG 7KH LOOLTXLGLW\ LQ ORQJ WHUP
FHUWDLQOHYHORIVWDELOLW\WRWKHSULFHV QG LW PRUH SURWDEOH WR VHOO WKHLU FRQWUDFWVPDNHWKHWUDQVDFWLRQFRVWV
RI WKH XQGHUO\LQJ DVVHW &RQVXPHUV SURGXFH LPPHGLDWHO\ DW WKH KLJK KLJKHUVLQFHWKHELGDVNVSUHDGVZLOO
DUH KDSS\ WR HQWHU LQWR ORQJWHUP SULFHV SUHYDLOLQJ LQ WKH PDUNHW 2Q
FRQWUDFWV HVSHFLDOO\ LQ VLWXDWLRQV WKHRWKHUKDQGLIWKHORQJUXQSULFH
ZKHQ VXSSO\ RI WKH XQGHUO\LQJ DVVHW HODVWLFLW\ LV JUHDWHU WKDQ WKH VKRUW
WHUP SURGXFHUV IDFH WKH ULVN RI QRW
LVVKRUWDQGSULFHVWHQGWRULVH
QGLQJ FRQVXPHUV IRU WKHLU SURGXFWV
(QWHULQJ LQWR ORQJWHUP FRQWUDFWV LQ VSLWH RI WKH KLJK SULFHV ,Q WKDW

EHWKHODUJHVWLQWKHVHFRQWUDFWVDQG
WKHUHIRUHXQDWWUDFWLYHWRWKHPDUNHW
SDUWLFLSDQWV ([FKDQJHV WKHUHIRUH
KDYH WR SXW LQ PRUH HIIRUW WR PDNH
D ORQJWHUP FRQWUDFW VXFFHVVIXO DQG
WR LQFUHDVH LWV OLTXLGLW\ &RQVLGHULQJ

HQVXUHV DQ DVVXUHG VRXUFH RI VXSSO\ HYHQW SURGXFHUV VWDQG WR ORRVH RXW WKH IDFW WKDW ORQJWHUP FRQWUDFWV
7KHUH LV DQRWKHU DGYDQWDJH RI RQ YROXPHV DQG WKH\ ZRXOG OLNH WR DUH EHQHFLDO WKH UHJXODWRUV VKRXOG
HQWHULQJ LQWR ORQJWHUP FRQWUDFWV ZDQWWRHQWHULQWRORQJWHUPFRQWUDFWV HQFRXUDJH H[FKDQJHV WR RDW ORQJ
$Q DVVXUHG PDUNHW IRU WKH SURGXFW ZKLFKDVVXUHVWKHPDFDSWLYHEX\HUV GXUDWLRQFRQWUDFWV
HQFRXUDJHV WKH SURGXFHU WR VXVWDLQ LQWKHHYHQWSULFHULVHV
'LVFODLPHU
RUHYHQLQFUHDVHVXSSO\*HQHUDOO\LW
7KHYLHZVH[SUHVVHGDUHSHUVRQDODQGFRXOG
EHLPSUHVVLRQLVWLFDQGPD\QRWQHFHVVDULO\
LVFXWVLQSURGXFWLRQZKLFKLQFUHDVHV 2QH PXVW QRWLFH WKDW WKHUH LV YHU\
UHHFWWKHYLHZVRI1&'(;
OLWWOH LQFHQWLYH IRU DQ H[FKDQJH WR
WKHSULFHRIWKHFRPPRGLW\
6XUSULVLQJO\LWLVGXULQJWKHSHULRGRI LQWURGXFH ORQJWHUP FRQWUDFWV 7KH


3ULFHHODVWLFLW\RIGHPDQGEDVLFDOO\PHDVXUHVWKHUDWHDWZKLFKGHPDQGUHVSRQGVRUFKDQJHVWR
DQ\FKDQJHLQSULFH

_&RPPRGLWLHV 'HULYDWLYHV

1RYHPEHU

'LG  <R X  . Q R Z
'LG<RX.QRZ"
$ERXWLQYHVWPHQWV
9 ,QYHVWHF$VVHW0DQDJHPHQWWKHVHFRQGELJJHVWSULYDWHPRQH\PDQDJHUZLWKDVVHWVRIDERXWELOOLRQKDVSODQQHGWR
VWDUWDIXQGWKDWWUDGHVLQFRPPRGLWLHVDQGQDWXUDOUHVRXUFHVWRFNV7KHIXQGZLOOEHWRQHQHUJ\PHWDOVDQGDJULFXOWXUDO
GHULYDWLYHV
9 %DUFOD\VKDVHVWLPDWHGLQYHVWPHQWLQRZVLQWRFRPPRGLWLHVLQDWELOOLRQ86DVFRPSDUHGWRELOOLRQ86LQ

$ERXWH[FKDQJHV
9 &%27RQ2FWREHUKDVVHWDQHZUHFRUGRIFRQWUDFWVLQLWVDJULFXOWXUHFRPPRGLWLHV7KHH[FKDQJHVHWLWV
SUHYLRXVKLJKRIFRQWUDFWVLQ2FWREHU
9 1<0(;ODXQFKHV5XVVLDQH[SRUWEOHQGFUXGHRLOFRQWUDFWVRQLWV&0(*OREH[HOHFWURQLFSODWIRUPRQ2FWREHU
9 &%27WKHOHDGLQJFRPPRGLW\IXWXUHVH[FKDQJHDQG'RZ-RQHVWKHOHDGHULQQHZVDQGLQIRUPDWLRQKDYHODXQFKHGWKH
&KLQHVHYHUVLRQRI&RPPRGLW\QHZVIRU7RPRUURZRQ2FWREHU
9 &%27LVVDLGWRZHLJKWKHRSWLRQVWRELGIRUWKH/0(7KLVFRPHVLQWKHZD\ZKHQWKHUHLVEHLQJDSKDVHRIFRQVROLGDWLRQ
RIJOREDOWUDGLQJSODWIRUPV
9 '*&;SODQVWRVHWVWHHOIXWXUHVWUDGLQJLQLWVWUDGLQJSODWIRUPEHIRUH0DUFK7KH'XEDLVWHHOFRQWUDFWZLOOEHIRU
WRQVRIJUDGH:UHLQIRUFLQJEDU UHEDU PHWUHVORQJ
9 ,QGLDQFRPPRGLW\IXWXUHVWUDGLQJIRUWKHUVWPRQWKVRI\HDUHQGHG6HSWHPEHUKDVUHFRUGHG5VODNK
FURUHFRPSDUHGWR5VODNKFURUHLQWKHUVWPRQWKVRI0&;EXVLQHVVYROXPHWRXFKHG7KHEXVLQHVV5V
ODNKFURUH VKDUH 1&'(;5VODNKFURUH  7KHEXVLQHVVWXUQRYHUYROXPHRI10&(ZDV5VFURUH  
9 &%27WREHDFTXLUHGE\&0(KROGLQJVIRUPRUHDQDPRXQWRIPRUHWKDQELOOLRQ7KHWDNHRYHURI&%27E\&0(ZLOO
FUHDWHELJJHVWIXWXUHVH[FKDQJH
$ERXWPDUNHWV
9 &KLQDVVR\DEHDQSURGXFWLRQIRULVHVWLPDWHGDWPLOOLRQWRQV7KHSURGXFWLRQHVWLPDWHVDUHORZHUHGE\IURP
ZKHQWKHSURGXFWLRQZDVPLOOLRQWRQV
9 ,QGLDWRUHYLHZVXJDUH[SRUWEDQE\2FWREHUHQG7KHEDQZKLFKZDVSODFHGRQ-XO\DVDQHIIRUWWRFRROGRPHVWLF
VXJDUSULFHVLVH[SHFWHGWREHUHFRQVLGHUHGDVWKHGRPHVWLFVXJDUSURGXFWLRQLVDQWLFLSDWHGWRUHDFKODNKWRQVWR
ODNKWRQVDVFRPSDUHGWRODNKWRQVODVWVHDVRQ
9 7KH,QGLDQVHFXULWLHVPDUNHWUHJXODWRU6(%, 6HFXULWLHVDQG([FKDQJH%RDUGRI,QGLD KDVSODQVWRSHUPLWEDQNVKROGLQJ
OLFHQVHWRWUDGHLQJROGWRRIIHUFXVWRGLDOVHUYLFHVLQJROGIRUWKHSURSRVHG([FKDQJH7UDGHG)XQGVRQ*ROG
9 8NUDLQHZKLFKOHDGVWKHJOREDOZKHDWH[SRUWPDUNHWVE\SRVLWLRQLQJLWVHOILQWKHVL[WKSODFHKDVKDOWHGWKHZKHDWH[SRUWV
IURPLWVSRUWVDVDFRQVHTXHQFHWRLWVGLVSXWHZLWKWKHWUDGHUV([SRUWVZHUHVWRSSHGDVWKHWUDGHUVUHIXVHGWRVHOOZKHDW
WRWKHVWVWHUHVHUYHVDWDGLVFRXQWRISHUWRQWRWKHWKHQSUHYDLOLQJSULFHVRISHUWRQ
9 &RSSHUSULFHVDFFRUGLQJWRWKHKHDGRI&RGHOFRWKHZRUOGVOHDGHULQFRSSHUSURGXFWLRQDUHH[SHFWHGWRUHPDLQWLJKW
XQWLOO7KHFRPSDQ\KDVUDLVHGLWVSURGXFHUSUHPLXPLQ(XURSHIRUWRSHUWRQLQFOXVLYHRIVKLSSLQJFRVWV
WR(XURSHDQSRUWVIURPWKHFXUUHQW\HDUVSHUWRQ
9 *OREDOFUXGHRLORXWSXWGHFOLQHGWRPLOOLRQEDUUHOVDGD\LQ6HSWHPEHU7KHIDOOZDVLQLWLDWHGDVDSDUWRIFUXGHRLO
SURGXFWLRQFXWIURPWKH23(&23(&FUXGHRLORXWSXWIRUWKHPRQWKRI6HSWHPEHUGHFOLQHGWRPLOOLRQEDUUHO
SHUGD\

_&RPPRGLWLHV 'HULYDWLYHV

1RYHPEHU

( Y H Q WV  , Q I R

&(2&RQFODYH

7KH &(2 &RQFODYH ZDV KHOG LQ 0XPEDL


RQ 2FWREHU   FRLQFLGLQJ WKH
),$ $VLD &RQIHUHQFH 2YHU  NH\
GHFLVLRQPDNHUV RI FRUSRUDWH ,QGLD
DQG GLVWLQJXLVKHG LQWHUQDWLRQDO JXHVWV
DWWHQGHGWKH&(2&RQFODYH

,Q KLV ZHOFRPH DGGUHVV 6KUL -LJQHVK


6KDK &KDLUPDQ &(2 &RQFODYH 0'
 &(2 0&; RSLQHG WKDW LW LV DSW WR
GHVFULEH WKH FXUUHQW WHDP KHDGHG E\
6KUL 6KDUDG 3DZDU +RQRXUDEOH 0LQLVWHU
IRU $JULFXOWXUH 6KUL / 0DQVLQJK
6HFUHWDU\ 0LQLVWU\ RI &RQVXPHU
$IIDLUV *RYHUQPHQW RI ,QGLD DQG 6KUL
6 6XQGHUHVKDQ &KDLUPDQ )RUZDUG
0DUNHWV &RPPLVVLRQ DV WKH KDUELQJHUV
RI UHIRUPV DQG SURJUHVV LQ WKH ,QGLDQ
FRPPRGLWLHV PDUNHWV MXVW DV WKH WHDP
KHDGHG E\ 6KUL 0DQDPRKDQ 6LQJK 6KUL
0RQWHN 6LQJK DQG 6KUL 5 + 3DWLO ZHUH
UHJDUGHG DV WKH YLVLRQDULHV EHKLQG WKH
VWRFNPDUNHWUHIRUPVLQ,QGLD
6KUL 6 6XQGHUVKDQ &KDLUPDQ )RUZDUG
0DUNHWV &RPPLVVLRQ WRXFKHG RQ WKH
FUXFLDO LVVXHV RI HVWDEOLVKLQJ OLQNV DW
YDULRXV OHYHOV WR FRQWLQXH SURJUHVVLQJ
ZLWK PRPHQWXP +H KLJKOLJKWHG WKDW
VRPHWKHSHQGLQJLVVXHVVXFKDVIRUHLJQ
1RYHPEHU

LQYHVWPHQW LQ ,QGLDQ H[FKDQJHV ,QGLDQ


LQYHVWPHQWLQIRUHLJQH[FKDQJHVRYHUVHDV
WUDGLQJE\,QGLDQVGLUHFWPDUNHWDFFHVV
WR RYHUVHDV SDUWLFLSDQWV SHUPLVVLRQ WR
EDQNV LQVWLWXWLRQV DQG IXQGV DUH EHLQJ
H[DPLQHG LQ D FRPSUHKHQVLYH PDQQHU
DQG VXLWDEOH VWHSV
ZLOO EH LQLWLDWHG LQ
GXHFRXUVH

%ROWRQ'LUHFWRU&0(FRPSOLPHQWHGWKH
OHDGHUVKLS RI ,QGLD LQ WKH WHFKQRORJ\
VSDFH DQG DFNQRZOHGJHG WKH SRWHQWLDO
RIIHUHGE\WKH,QGLDQPDUNHWV

0U /DPRQ 5XWWHQ -0' 0&; VSRNH


DERXW WKH WHFKQRORJ\ DGYDQWDJH RI WKH
,QGLDQPDUNHWSODFHDQGDOVRKLJKOLJKWHG
WKH QHHG IRU GHYHORSLQJ VSHFLDOL]HG
SURGXFWVWRVXLWWKHORFDOQHHGVEHLWRI
6KUL / 0DQVLQJK WKHIDUPHUVRURIWKHFRQVXPHUV
6HFUHWDU\0LQLVWU\RI
&RQVXPHU$IIDLUVLQ 0U 6FRWW 6OXWVN\ 0' $ODURQ *OREDO
KLV NH\QRWH DGGUHVV RSLQHGWKDWHGXFDWLRQDQGWUDLQLQJZLOO
GHOYHG LQ GHWDLO WKH EH WKH OLIHOLQH IRU JURZWK DQG VXUYLYDO
XQLTXHQDWXUHRIWKH RIWKHPDUNHWVDQGVWUHVVHGWKDWHYHU\
,QGLDQ FRPPRGLW\ SDUWLFLSDQWLQWKHPDUNHWVKRXOGLQYHVW
PDUNHW6SHFLFDOO\ RQHVWLPHDQGHIIRUW
KHWRXFKHGXSRQWKH 
LVVXHV LQ VWDQGDUGL]DWLRQ ZDUHKRXVLQJ 0U 6XGLS %DQGKR\SDGKD\D\ 'LUHFWRU
DQG ZDUHKRXVH UHFHLSW V\VWHPV 5HOLDQFH &RPPRGLWLHV IHOW WKDW WKH
VXSSO\ FKDLQ LQIUDVWUXFWXUH DQG QDOO\ UHDO FKDOOHQJH ZRXOG EH LQ WKH KXPDQ
SHUFRODWLQJ WKH EHQHWV RI SULFH UHVRXUFHV GHYHORSPHQW WR NHHS SDFH
GLVFRYHU\WRIDUPHUV+HIHOWWKDWJLYHQ ZLWKWKHH[SHFWHGJURZWKLQWKHPDUNHW
WKHVWDWHRIWKHVSRWPDUNHWLQ,QGLDWKH +H FDOOHG IRU QHZHU SURJUDPPHV IURP
IXWXUHV H[FKDQJHV DUH WU\LQJ WKHLU EHVW WKH 8QLYHUVLWLHV DQG EURDG EDVLQJ WKH
WR OO LQ WKH LQDGHTXDFLHV RI WKH VSRW FXUULFXOXP LQ WKH FXUUHQW PDQDJHPHQW
PDUNHWVWRWKHH[WHQWSRVVLEOH
HGXFDWLRQ
V\VWHP
WR
LQFOXGH
FRPPRGLWLHV
0U5REHUW5D\6U93&%27DQG0U1LFN
0U
'LZDNDU
-DJDQQDWK 0' ,.21
*OREDO RSLQHG WKDW
RSWLRQV VKRXOG EH
LQWURGXFHG LQ WKH
,QGLDQ
FRPPRGLW\
PDUNHWV DV LW RIIHU D
FRPSOHWHO\ GLIIHUHQW
YDOXHSURSRVLWLRQDQG
ZRXOG DGGUHVV WKH
QHHGV RI WKH KHGJHUV
EHWWHU
&RPPRGLWLHV 'HULYDWLYHV_

% U R N HU V  & D O O

-HHUD7KH5DOO\&RQWLQXHV
+DULVK*DOLSHOOL6HQLRU5HVHDUFK$QDO\VW.DUY\&RPWUDGH/WG

-HHUD SULFHV WRXFKHG DURXQG 5V   5V  SHU


TXLQWDOLQ8QMKDVSRWPDUNHWDVDUHVXOWRIVSXUWLQH[SRUW
RUGHUVDQGODFNRIDUULYDOVGXULQJODVWPRQWK%XWWRRN
VWHHS FRUUHFWLRQ DIWHU FKDQJLQJ FRQWUDFW VSHFLFDWLRQ
LQ 1&'(; DQG GHFOLQHG EX\LQJ DFWLYLWLHV LQ WKH VSRW
PDUNHW

-HHUDSULFHVDW7XUNH\TXRWLQJDURXQGSHU
07DQGLQ6\ULDLWLVDURXQGSHU07,QGLDQ
-HHUD LV TXRWLQJ DURXQG  SHU 07  KDYLQJ
FRPSDUDWLYHDGYDQWDJHRYHURWKHUFRXQWULHV
$V-HHUDDOUHDG\WRRNVWHHSFRUUHFWLRQLQSULFHV
LWPD\DWWUDFWJRRGQXPEHURIRYHUVHDVEX\HUV
([SHFWHG H[SRUW RUGHUV   WR  ODNK EDJV DQG

)DFWRUVWKDWLQXHQFHGVHOOLQJLQUHFHQWSDVW

VWRFNVDYDLODEOHLQWKHVSRWLVDURXQGWRODNK
EDJV

&KDQJHRIFRQWUDFWVSHFLFDWLRQSUHVVXUL]HGWKH
SULFHV
/DFNRIEX\LQJLQWKHVSRWPDUNHWDQGLQFUHDVHG 7HFKQLFDORXWORRN
7KHPRVWDFWLYH1RYHPEHU-HHUDFRQWUDFWDW1&'(;LV
VHOOLQJIURPWKHIDUPHUV
SUHVHQWO\ WUDGLQJ DW  OHYHOV DIWHU PDNLQJ KLVWRULF
([SRUWDFWLYLWLHVZHUHVORZHUGXHWRIHVWLYDOV
KLJKV RI  LQ WKH PRQWK RI 6HSWHPEHU$V VRRQ DV
-HHUDSULFHVDUHH[SHFWHGWRJRXSVKDUSO\RQWKHEDFN PDUNHW WRXFKHG  OHYHOV VRPH VKDUS FRUUHFWLRQ
RIDQWLFLSDWHGJRRGH[SRUWRUGHUVLQWKHPDUNHW

ZDVVHHQLQWKHPDUNHWDVUHFHQWUDOO\WXUQHGWKHFKDUW

6RZLQJ DFWLYLWLHV LQ 6DXUDVKWUD PD\ GHOD\ GXH IRUPDWLRQVVOLJKWO\RYHUERXJKW


WR XQFHUWDLQ ZHDWKHU FRQGLWLRQV 7KH UHJLRQ
LV H[SHFWHG WR KDYH ORZHU FURS QH[W \HDU +RZHYHU SULFHV WRRN VXSSRUW DW  OHYHOV UHVXPLQJ
SURGXFWLRQ LV HVWLPDWHG WR EH ORZHU E\  WR EXOOLVKWUHQG2YHUDOOWUHQGUHPDLQVEXOOLVKDVSULFHVDUH
SUHYDLOLQJZHOODERYHGD\(0$RIOHYHOV7HFKQLFDO
 
+LJKHUSULFHVRI)HQQHODQG*DUOLFDWWUDFWHGPRVW LQGLFDWRUVOLNH56,  DWDQGDSRVVLEOHEXOOLVKFURVV
RI WKH IDUPHUV LQ 6DXUDVKWUD ZKHUH DV -HHUD RYHULQ0$&'RVFLOODWRUVXSSRUWWKHEXOOLVKYLHZLQVKRUW
WHUP:HH[SHFWIXUWKHUXSZDUGPRYHPHQWWRZDUGV
FURSLVKLJKO\VHQVLWLYHWRZHDWKHUYDJDULHV
+RZHYHUVRZLQJDFWLYLWLHVLQ5DMDVWKDQKDVQRW OHYHOVZKLFKLVUHWUDFHPHQWRIPRYH
\HW VWDUWHG 0RUH DUHD PD\ FRPH XQGHU -HHUD %X\LQJRQGLSVWRZDUGVWDUJHWLQJLQLWLDOO\DQG
WKHQZRXOGEHLGHDOWUDGLQJVWUDWHJ\IRUWKHPRQWK
IURPWKLVUHJLRQ
([SRUW RUGHUV IURP 0DXULWLXV 6LQJDSRUH DQG DKHDG
(XURSH

)RU)UHH7UDGLQJ&KDUWVRQ&RPPRGLWLHV/RJRQWR

ZZZ&RPPRGLW\,QGLDFRP
_&RPPRGLWLHV 'HULYDWLYHV

1RYHPEHU

%URNHUV&DOO

%URNHUV6KRZ<RX
+RZWR3OD\WKH*DPHWR:LQ
0V0DQMXOD$QDVNDU5HVHDUFK$QDO\VW60&&RPWUDGH3YW/LPLWHG

6XSUHPHPRWWRRIDQ\EURNHUDJHUPLVWRJLYHFRPSHWHQWDQG x
YDOXDEOH LQYHVWPHQW UHODWHG VHUYLFHV WR FXVWRPHUV WR EXQGOH
XSWKHEHVWSRVVLEOHUHWXUQIURPWKHPDUNHWVIRUWKHLUFOLHQWV
*LYLQJ YDOXH DGGHG VHUYLFH LV WKH IRXQGDWLRQ RI FOLHQWEURNHU
UHODWLRQVKLS ,Q WKH HUD RI FXWWKURDW FRPSHWLWLRQ HDFK DQG
HYHU\ EURNHUDJH UP HQGHDYRUV WR JLYH LWV EHVW WR RXULVK LQ
x
WKHPDUNHW%URNHUVEHOLHYHWKDWHYHU\LQYHVWRUPXVWEHDZDUH
RI HYHU\ FUXFLDO LQIRUPDWLRQ VWUDWHJ\ DERXW WKH SURGXFWV WR
JHWPRVWDGYDQWDJHRXVUHWXUQIURPWKHLULQYHVWPHQWV+HQFH
EURNHUVWU\WRJLYHFRQWLQXRXVDQGGHQHGGHFLVLRQPDNLQJWRROV
WRWKHLQYHVWRUV
x

x

x

9DULRXV UHVHDUFK UHSRUWV DQG JXLGDQFH RQ LQWUD GD\ GDLO\


DQG ORQJWHUP EDVLV ,QQRYDWLRQ FRPELQHG ZLWK WKRURXJK
PDUNHW NQRZOHGJH DQG GHGLFDWLRQ WR VHUYLQJ FOLHQWV EHVW
LQWHUHVWLVWKHFRUQHUVWRQHRIEURNHUV%URNHUVSURYLGHYLWDO
x
LQIRUPDWLRQWRWKHFOLHQWVWRWDNHVPDUWSRVLWLRQV%URNHUV
IDFLOLWDWHLQYHVWRUVZLWKUHVHDUFKUHSRUWVZKLFKDUHEDVHG
RQWKHH[WHQVLYHIXQGDPHQWDODQDO\VLVRIWKHPDUNHWDQG
YDULRXV SULFH PRYLQJ IDFWRUV LQ WKH FRPPRGLW\ PDUNHWV
VXFK DV ZHDWKHU FRQGLWLRQV GHPDQG VXSSO\ VFHQDULR
*RYHUQPHQW UHJXODWLRQV HWF 7KH\ SURYLGH VKRUW WHUP DV
ZHOODVORQJWHUPRXWORRNRIFRPPRGLWLHVDQGPDUNHW
x
)DVWDQGFRQYHQLHQWWUDGLQJSODWIRUP7KHDUULYDORIPDWXUH
,QWHUQHW IDFLOLWLHV ZKLFK LV TXLFN HIFLHQW DQG KDYLQJ
JUHDW FRQQHFWLYLW\ PDNH FOLHQWV FDSDEOH RI WDNLQJ D ZLVH
VWHS3HUVRQDOZHEVLWHVSURYLGHH[WHQVLYHLQIRUPDWLRQYL]
x
SULFHTXRWHVFKDUWVZKLFKRQHFDQFXVWRPL]H
7UDGLQJ JXLGDQFH %DVHG RQ WHFKQLFDO DQG IXQGDPHQWDO
DQDO\VLVLWLVDQLGHDOWRROIRUWKHSURIHVVLRQDOFRPPRGLW\
WUDGHU:KHQWKHDSSURSULDWHWLPHVWULNHVLQYHVWRUVJHWUHDO
WLPHWUDGLQJVWUDWHJ\ EX\VHOO VLJQDOVWKURXJK,QWHUQHWDQG
PRELOHGHYLFH%URNHUVSURYLGHRXWVWDQGLQJVWUDWHJLHVYL]
DUELWUDJHVSUHDGKHGJLQJWRPDNHEHVWSRVVLEOHUHWXUQVWR
WKHLULQYHVWRUV

1RYHPEHU

$GYLVRU\VHUYLFHV1RV\VWHPFRQVLVWHQWO\SHUIRUPVLGHDOO\
LQDOOPDUNHWV+HQFHWRHQKDQFHLQFRPHFRQVLVWHQWZLWK
D KLJK OHYHO RI OLTXLGLW\ EURNHUV JLYH SURGXFW PL[ WR WKH
FOLHQWV DQG FRQVWDQWO\ UHDOLJQ LW WR HQKDQFH WKH FOLHQW
LQYHVWPHQWV
,QYHVWRU HGXFDWLRQ %URNHUV EHOLHYH WKDW LQYHVWRUV VKRXOG
EHDZDUHRIULVNDQGUHWXUQRIWKHPDUNHW(GXFDWLRQDQG
H[SHULHQFH DUH WKH FRUQHUVWRQHV RI VXFFHVV LQ WUDGLQJ
7R PLQLPL]H WKH ULVN WKH\ RUJDQL]H WUDLQLQJ SURJUDPPHV
SUHVHQWDWLRQV VHPLQDUV HWF WR FUHDWH DZDUHQHVV RQ ULVN
DQG UHWXUQ DQG YDULRXV WHFKQLFDO DVSHFWV RI WKH WUDGLQJ
3UHVHQWDWLRQ LV WR SURYLGH D VRXQG LQWURGXFWLRQ DQG
LQIRUPDWLRQV WR VRSKLVWLFDWHG WHFKQLTXHV LQ IXWXUHV DQG
FRPPRGLWLHVWUDGLQJ
5HSUHVHQWDWLYH %URNHUV DUH FRQVLGHUHG DV LQYHVWRUV
UHSUHVHQWDWLYHVLQYDULRXVH[FKDQJHVLQZKLFKWKH\WUDGH
,I LQYHVWRUV KDYH DQ\ JULHYDQFHV RU GLVSXWH LQ UHJDUG WR
TXDOLW\TXDQWLW\PDUJLQVFRQWUDFWVSHFLFDWLRQFRQWUDFW
FDQFHOODWLRQ HWF EURNHUV ZRUN DV D SURWHFWLYH KDQG WR
WKHLU FOLHQWV DQG VRUW RXW WKRVH JULHYDQFHV RQ EHKDOI RI
LQYHVWRUV
*XLGDQFHIRUSK\VLFDOFRPPRGLW\PDUNHW%URNHUVSURYLGH
LQIRUPDWLRQUHJDUGLQJRXWVRXUFLQJRIWKHULJKWFRPPRGLW\
DW WKH ULJKW SODFH DQG DW ULJKW SULFH ZLWK ULJKW TXDOLW\
VSHFLFDWLRQV
'LVVHPLQDWLRQ RI YDULRXV WUDGH GHWDLOV .QRZOHGJH LV
SRZHU %URNHUV SURYLGH WKH SRZHU WR LQYHVWRUV WR PDNH
LQIRUPHG GHFLVLRQV WR KLW WKH ULJKW WUDGLQJ VWUDWHJLHV DW
ULJKW WLPH %URNHUV SURYLGH LQIRUPDWLRQV RQ LQYHQWRU\ LQ
DFFUHGLWHGZDUHKRXVHVH[SRUWLPSRUWRIWKHFRPPRGLWLHV
DQG GLIIHUHQFH EHWZHHQ LQWHUQDWLRQDO DQG GRPHVWLF SULFH
PRYHPHQWV %URNHUV PDNH DYDLODEOH D QXPEHU RI GHWDLOV
ZKLFK JXLGH LQYHVWRUV WR WUDGH LQ SK\VLFDO FRPPRGLW\
PDUNHW YL] GHPDQG VXSSO\ VFHQDULR LPSRUWDQW GDWD RQ
GHOLYHULHVRSHQSRVLWLRQQHZVHWF
&RPPRGLWLHV 'HULYDWLYHV_

$UWLFOH

6HFRQG *UHHQ 5HYROXWLRQ


WKURXJKH5HYROXWLRQ
10&(LQWKHIRUHIURQWRISURYLGLQJHSODWIRUPIRUEHQHWRIVWDNHKROGHUV
%\.DLODVK*XSWD0DQDJLQJ'LUHFWRU1DWLRQDO0XOWL&RPPRGLW\([FKDQJH
(YHQ DV WKH GDLO\ WUDGH YROXPH LQ
FRPPRGLW\ H[FKDQJHV LQ ,QGLD LV
SURMHFWHG WR LQFUHDVH IURP RYHU

IRU WKH FRPPRGLWLHV WR UHDFK


WKH FRQVXPHUV DW ORZHVW SRVVLEOH
SULFHV

5VFURUH QRZ WR 5V x 7R HTXLS WKH H[FKDQJH ZLWK


DSSURSULDWH PDUNHW LQVWUXPHQWV
FURUHLQDIHZ\HDUVWKHUHVSRQVLELOLW\
DQGLQVWLWXWLRQVXVLQJWKHWRROVRI
RI RQOLQH QDWLRQDO OHYHO PXOWL
,7DWDOOOHYHOIURPYLOODJHPDQGLV FRPPRGLW\ UHYROXWLRQ LQ WKH IRUP
FRPPRGLW\H[FKDQJHVOLNH10&(KDV
WRXUEDQPDUNHWVDQG
RI
DOVRLQFUHDVHGPDQLIROG
x 7R EULQJ LQ PRUH LQQRYDWLRQV 3ULFHGLVFRYHU\IRUEHWWHUPHQWRIWKH
VXFK DV ZDUHKRXVH UHFHLSWEDVHG IDUPHUVDQGFRQVXPHUV
10&( ZDV WKH UVW WR HQWHU WKH
VHWWOHPHQW
PHFKDQLVP
DQG ,QFUHDVLQJ UHOHYDQFH IRU JUDGXDO
DUHQD WR SURYLGH D WUDQVSDUHQW
HOHFWURQLF SODWIRUP ZLWK IRROSURRI
GHOLYHU\V\VWHP,WOHGWKHWUDQVLWLRQ

LPSURYH SK\VLFDO LQIUDVWUXFWXUH UHPRYDORIYDULRXVVXEVLGLHV


IURP UXUDO URDGV WR KLJKZD\V DQG %HWWHURSSRUWXQLWLHVXQGHU*$77DQG
UDLOZD\VWRSRUWVDQGDLUSRUWV
:72 RQ WKH LVVXHV RI DJULFXOWXUDO

LQ KLJKO\ IUDJPHQWHG FRQWUROOHG


DQG UHVWULFWHG HFRQRP\ WR JOREDOO\
LQWHJUDWHG
7KH
FRPPRGLW\ ,QGLDKDVEHHQDQDJUDULDQHFRQRP\
H[FKDQJHVKDYHSXEOLFUHVSRQVLELOLW\ ZLWK  SHU FHQW RI WKH *'3
WRRWRHQVXUHWKDWQDWLRQDODLPVDQG FRQWULEXWHG E\ DJULFXOWXUDO VHFWRU

VXEVLGLHVDUHHPHUJLQJRSSRUWXQLWLHV
DQG
&RPPLWPHQW WR WKH FLWL]HQV IRU
IDLU SULFHG DYDLODELOLW\ RI TXDOLW\

REMHFWLYHVDUHDFFRPSOLVKHGDVTXDVL 7KH*UHHQ5HYROXWLRQFUHDWHGEHWWHU FRPPRGLWLHV


RSSRUWXQLWLHV IRU FRPPRGLW\ WUDGH 0RUHRYHU
FRQWUDU\
WR
D
PDUNHWUHJXODWRUV
7KH
GD\V
RI
VKRUWDJH
JRYHUQPHQW
PLVFRQFHSWLRQ
VSHFXODWLRQ
LQ
x 7R PDNH ,QGLD D PDMRU WUDGLQJ
FRQWURO
DQG
UDWLRQLQJ
HQGHG
7KH
IXWXUHVWUDGHLVKHDOWK\DQGQHHGHG
QDWLRQ LQ WKH ZRUOG LQ ERWK IDUP
:KLWH
5HYROXWLRQ
IROORZHG
DQG
+RZZRXOGWKHIXWXUHVWUDGHRSHUDWH
DQGQRQIDUPFRPPRGLWLHV
,QGLD
FRXOG
QRZ
VWDQG
WDOO
DV
RQH
LI WKH IXWXUH SULFHV FRXOG QRW EH
x 7R IUHH ,QGLDQ DJULFXOWXUH IURP
ULVNV LQ WHUPV RI LUUDWLRQDO DQG RI WKH ODUJHVW SURGXFHU RI VHYHUDO VSHFXODWHG"
FRPPRGLWLHVLQWKHZRUOG
HUUDWLFSULFHXFWXDWLRQV
x 7R EULQJ UHZDUGV WR DOO WKH ,W KDV RSHQHG XS RRGJDWHV RI
VWDNHKROGHUV WKH SURGXFHUV WKH RSSRUWXQLWLHV IRU WKH IDUPHUV
H[SRUWHULPSRUWHUV
FRQVXPHUVWKHWUDGHUVDQGWRWKH SURGXFHUV
WUDGHUVLQYHVWRUVDQGFRQVXPHUV
QDWLRQDOH[FKHTXHU

7KH ZRUOG RYHU WKH IXWXUHV WUDGH


SURYLGHV WKH RSSRUWXQLWLHV IRU
SULFH GLVFRYHU\ EHWWHUPHQW RI
SURGXFHUV KHGJLQJ RSSRUWXQLWLHV
DQG RSSRUWXQLWLHV WR LQYHVWRUV LQ

x 7R HQVXUH PD[LPXP SRVVLEOH 2SSRUWXQLWLHV IRU WKH *RYHUQPHQW FRPPRGLW\DVDQDVVHWFODVV


UHPXQHUDWLYH SULFHV WR IDUPHUV KDYH DOVR LQFUHDVHG ZLWK WKLV 7KH SUHGLFWLRQ RI SULFHV IRU IXWXUHV
_&RPPRGLWLHV 'HULYDWLYHV

1RYHPEHU

$UWLFOH
FRQWUDFW DUH IUHHO\ DOORZHG WKDW WU\WRGHI\WKDWORJLFDOSKHQRPHQRQ 10&( DORQJ ZLWK &:& 1$)(' DQG
LV ZKHUH D PLWLJDWHG EXW IUHH LQVHDUFKRIQRWJUHHQHUEXWJROGHQ 31%1HSWXQH2YHUVHDV/WG
VSHFXODWLYH
WUDGLQJ
EHFRPHV SDVWXUHVWKHQZHDUHHPSOR\LQJWKH
LPSRUWDQW ,W VXSSRUWV WKH SURFHVV RSSRUWXQLWLHVGHWULPHQWDOO\
RI SULFH GLVFRYHU\ WKH QHHGHG
RSSRUWXQLWLHV IRU HQFRXUDJLQJ WKH 7RGD\10&(SURYLGHVDQHSODWIRUP
IDUPHUWKHSURGXFHU
IRU SURFXUHPHQW RI DV PDQ\ DV
5HFHQW KDSSHQLQJV RI D VKRUW WLPH
ZRXOGQDWXUDOO\ZRUU\WKHJRYHUQPHQW
WKH VKDUS SULFH YRODWLOLW\ LUUDWLRQDO
YROXPH LQFUHDVH LQ IHZ QDUURZ EXW

,QFLGHQWDOO\ FRPPRGLW\ PDUNHW LV


QRWQHZWR,QGLDRXUWUDGHUVKDYLQJ
GHYHORSHG JUHDW H[SHUWLVH LQ WKLV
HOGRYHUWKHODVWVHYHUDO&HQWXULHV

 FRPPRGLWLHV LQFOXGLQJ PDQ\


DJULFXOWXUDO SURGXFHV DW IDLU SULFHV :LWK WKH RSHQLQJ XS RI WKH ,QGLDQ
WKURXJK RQOLQH UHDOWLPH IXWXUHV DJULFXOWXUHWRWKHZRUOGPDUNHWVWKLV
WUDGLQJDW10&(WHUPLQDOVVSUHDGDOO LQVWUXPHQWWRHIIHFWLYHO\PDQDJHWKH

LPSRUWDQWFRPPRGLWLHVDQGUHVXOWDQW RYHU,QGLD
SULFHLQFUHDVH(DFKSDUWLFLSDQWKDV

XQFHUWDLQW\LQDIUHHPDUNHWUHJLPH
DQGWRPLWLJDWHULVNVKDVEHFRPHDOO

SXEOLFDQGVRFLDOUHVSRQVLELOLWLHVDQG ,W LV D PRGHUQ FRQFHSW  D MRLQW WKHPRUHQHFHVVDU\


FRPPLWPHQWV DQG JRYHUQPHQW LV HIIRUW RI SXEOLF DQG SULYDWH VHFWRU
YHU\ PXFK D PDMRU IRUFH WKH FKLHI RUJDQLVDWLRQV  DLPHG DW IXWXUH 7KH RQOLQH FRPPRGLW\ UHYROXWLRQ
FRQGXLW WR WKH FRPPRGLW\ WUDGH  GHYHORSPHQWRIWKH,QGLDQHFRQRP\ WKDW EHJDQ LQ  FRPELQHG WKH
VDWLVIDFWRU\VXSSO\RIHVVHQWLDOGDLO\ HVSHFLDOO\WKHDJULFXOWXUDOVHFWRU
RSSRUWXQLWLHVRILQFUHDVHGSURGXFWLRQ
QHHGV

DQGH[SDQGHGEDQGRIFRPPRGLWLHV
7KDQNV WR WKH IDUVLJKWHGQHVV RI 6WDUWLQJZLWKFRPPRGLWLHVDFURVV

8QLYHUVDOO\ WKH SK\VLFDO FRPPRGLW\ *RYHUQPHQW RI *XMDUDW *R*  WKH FRXQWU\ MXVW IRXU \HDUV EDFN
DQG WKH YROXPHV WUDGHG RQ ERXUVHV *$,&DQG*6$0%DUHQRWRQO\DFWLYH LW KDV RYHU  FRPPRGLWLHV LQ LWV
KDYH ORJLFDO UDWLR UHOHYDQFH ,I ZH SDUWQHUV EXW DOVR HTXLW\ KROGHUV RI EDVNHWZLWKIHZPRUHLQWKHRIQJ

,QGLDQRLOVHHGVDQG(GLEOHRLO3URGXFWLRQ(VWLPDWHV
(VWLPDWHVRI2LOVHHGVSURGXFWLRQRLO\HDU



.KDULII 5DEL 7RWDO .KDULII 5DEL 7RWDO
*URXQGQXW






6R\DEHDQ






5DSHVHHG

 

 
6XQRZHUVHHG
  

 
6HVDPHVHHG



 

1LJHUVHHG






6DIRZHUVHHGV






&DVWRU






/LQVHHG






7RWDO
     
1RWH9DOXHVLQODNKWRQV6RXUFH6($

1RYHPEHU

(GLEOHRLOSURGXFWLRQ

  9DU 
*URXQGQXW



6R\DEHDQ



5DSHVHHG



6XQRZHUVHHG



6HVDPH



6DIRZHUVHHGV



&RWWRQVHHG



&RFRQXWRLO



5%2



6(2LO



2WKHU



7RWDO



1RWH9DOXHVLQODNKWRQV6RXUFH6($

&RPPRGLWLHV 'HULYDWLYHV_

$UWLFOH

&DVWRUVHHG
*ORVVLQJZHOORQVXSSO\FRQFHUQV
7KH VXSSO\ VLGH GHYHORSPHQWV LQ WKH
FXUUHQW NKDULI VHDVRQ FRXSOHG DUH DQ
LQGLFDWLYH RI UP FDVWRU VHHG DV ZHOO
DV FDVWRU RLO SULFHV 7KH FUHGLW RI
KLJKHU SULFH UHDOL]DWLRQ LV WKH IDFWRU
RIGHFOLQHLQGRPHVWLFSURGXFWLRQDQG
VLJQLFDQWLQFUHDVHLQH[SRUWGHPDQG
)ROORZLQJ DUH WKH IDFWRUV ZKLFK DUH
DQWLFLSDWHGWRVXSSRUWSULFHVRIFDVWRU
FRPSOH[

3URGXFWLRQ'HFOLQHLQ,QGLDQDVZHOO
DV&KLQDVFDVWRUVHHGSURGXFWLRQ

+LJKHU H[SRUW GHPDQG FDSDFLW\
H[SDQVLRQV DV ZHOO DV FDSDFLW\
DGGLWLRQVIRUFDVWRUVHHGFUXVKLQJV

*RRG GRPHVWLF GHPDQG DV WKH
XVHU LQGXVWU\ OLNH WKRVH RI SDLQW
GHWHUJHQWV
OXEULFDQWV
DQG
SKDUPDFHXWLFDOV UHJLVWHULQJ JRRG
JURZWKUDWHV

VWDWHVRI*XMDUDW  .DUQDWDND GHFOLQH LQ SURGXFWLRQ ZKLFK LV


     7DPLO 1DGX     HVWLPDWHGWREHORZHUE\DERXWRI
5DMDVWKDQ  DQG0DKDUDVKWUD WKHQRUPDOSURGXFWLRQ
 
6WRFNVFRPIRUWDEOH
:KLOH WKH RWKHU PDMRU VWDWH $QGKUD 6WRFNOHYHORIFDVWRUVHHGLQWKHPDMRU
3UDGHVKUHJLVWHUHGQRPDMRUFKDQJHVDV PDUNHWV DQG PDQGLHV RI *XMDUDW LV
WKHIDUPHUVZHQWLQIRUODWHVRZLQJ
HVWLPDWHG DW DERXW  ODNK EDJV DV
FRPSDUHGWRDERXWODNKEDJVWR
'UDVWLFGHFOLQHLQSURGXFWLRQ
ODNKEDJV,QDGGLWLRQWRWKLVWKHWUDGHUV
&DVWRUSURGXFWLRQGHFOLQHGGUDVWLFDOO\ LQ$QGKUD3UDGHVKDQG0DKDUDVKWUDDUH
DV WKH PDMRU JURZLQJ UHJLRQV LQ KROGLQJDVLJQLFDQWVWRFNV
*XMDUDW DQG $QGKUD 3UDGHVK ZDV KLW
E\WKHSUREOHPVRIRRGVDQGGURXJKW 6XUJLQJGHPDQG
UHVSHFWLYHO\ 7KLV KDV IDFWRUHG ORZ 'HPDQG IRU FDVWRU VHHG DV ZHOO
SURGXFWLRQIRUNKDULIVHDVRQIURP DV FDVWRU RLO DSSHDUV VWURQJ :LWK
 ODNK WRQV WR  ODNK WRQV WR GHPDQG  IRU FDVWRU VHHG LQFUHDVLQJ
 ODNK WRQV FRQVHUYDWLYH EDVLV DQG IURP WKH FUXVKHUV DV ZHOO DV VKLSSHUV
ODNKWRQVWRODNKWRQVRQH[WUHPH WKHPDUNHWVDUHQRWLQDVLWXDWLRQWR
FDVHV
VDWLVI\WKHGHPDQGRIWKHSURGXFHDV

7KHGHFOLQHLQFDVWRUVHHGSURGXFWLRQ
LQ*XMDUDWKDVEHHQDFFRXQWHGPDLQO\
,QGLDQVFHQDULR
IRUWKHVKLIWLQIDUPHUFKRLFHWRSXOVHV
'UDVWLFGHFOLQHLQDUHD
$UHD XQGHU FDVWRU KDV EHHQ VWHDGLO\ /RZHU SULFH UHDOL]DWLRQ IRU FDVWRU
LQFUHDVLQJ IURP  ODNK KD LQ  KDV IRUFHG IDUPHUV WR FKDQJH WKHLU
 WR  ODNK KD LQ  7KH SUHIHUHQFH
DUHD XQGHU FDVWRU LQ  VWRRG
 ODNK KHFWDUHV 7KH DUHD WKRXJK 2Q WKH EDVLV RI  DUHD WKH VKDUH
KDV GHFOLQHG  UHPDLQV KLJKHU DV LQ FDVWRU DFUHDJH RI $QGKUD 3UDGHVK
FRPSDUHGWRWKHQRUPDOFRYHUDJHIRU *XMDUDW DQG 5DMDVWKDQ LV 
DQGUHVSHFWLYHO\
.KDULIVHDVRQDWODNKKHFWDUHV

WKHDUULYDOVDUHWKLQWKHPDMRUPDUNHWV
DQGPDQGLHV

6XSSO\
&DVWRUDUULYDOVIURPWKHQHZFURSDUH
H[SHFWHG WR UHDFK WKH PDUNHWV E\
-DQXDU\ ODVW$UULYDOV SHDN GXULQJ WKH
PRQWKVRI)HEUXDU\DQG0DUFK
$QGKUD 3UDGHVK FDVWRU VHHG DUULYDOV
VWDUWHG LQ WKH PDMRU PDUNHWV DQG
PDQGLHV 7KH HDUO\ VRZQ FURS DUH
FRPLQJ KDUYHVWHG 7KH PDUNHWV DUH
ZLWQHVVLQJ GDLO\ DERXW  EDJV RI
&DVWRUDUHDKDVGHFOLQHGLQWKHPDMRU *XMDUDW LV OLNHO\ WR ZLWQHVV D GUDVWLF FDVWRUVHHGV7KHDUULYDOVDUHH[SHFWHG
_&RPPRGLWLHV 'HULYDWLYHV

1RYHPEHU

$UWLFOH
WRJDLQPRPHQWXPDIWHUGD\VZKHQ VXUJHLQFDVWRURLOLPSRUWV
WKHVXSSO\SUHVVXUHZLOOEHIHOW
7KRXJK H[SRUW GHPDQG DSSHDUV
*LYHQWKHVXSSO\SHULRGWKHDYDLODELOLW\ DWWUDFWLYHWKHFRQWUDFWHGYROXPHVDUH
RIWKHFURSZLOOEHH[WHQGHGIRUHLJKW EHORZWKHKDQGOLQJFDSDFLW\RI,QGLDQ
PRQWKSHULRGIURP2FWREHU
H[SRUWHUV
([SRUWGHPDQG
&KLQD WKH PDMRU H[SRUW PDUNHW IRU
,QGLDKDVLQGLFDWHGLQFUHPHQWGHPDQG
IRU ,QGLDQ FDVWRU RLO SURGXFWV JLYHQ
WKHIDOOLQLWVSURGXFWLRQ7KH&KLQHVH
PDUNHWV DUH H[SHFWHG WR VHH D 

3ULFHV
$OUHDG\ SULFHV KDYH PRYHG 5V 
WR 5V  SHU TXLQWDO LQ WKH SK\VLFDO
PDUNHWV 2QO\ WKH VKLSSHUV ZKR DUH
DJJUHVVLYH LQ IXOOOLQJ GHPDQG DUH
EX\LQJ 2WKHU WKDQ WKLV WKH GHPDQG

IURP WKH GRPHVWLF PDUNHWV UHPDLQ


VXEGXHG
7KH FXUUHQW SK\VLFDO PDUNHW SULFHV
IRUFDVWRUDUHDERXW5VWR5V
SHU  NJ LQ *XMDUDW PDUNHWV 3ULFHV
DUHH[SHFWHGWRFRPHXQGHUSUHVVXUH
DV WKH DUULYDO RI FDVWRU IURP $QGKUD
3UDGHVK ZLOO JDLQ PRPHQWXP DIWHU
 GD\V  7KH GRZQVLGH PRYHPHQW
KRZHYHUZLOOEHOLPLWHGDVWKHRYHUDOO
PDUNHW VHQWLPHQW VHHV WR IDYRXU
XSWUHQGIURP1RYHPEHU

$662&+$0VXUYH\,QYHVWRUFRQGHQFHLQFRPPRGLWLHV
,QGLDQFRPPRGLW\PDUNHWVDUHWXUQLQJDWWUDFWLYHLQYHVWPHQWVDYHQXHVIRU,QGLDQLQYHVWRUFODVV$Q,QGLDQFRPPRGLW\PDUNHW
ZKLFKZDVLQQDVFHQWVWDJHVKDVJURZQVHYHUDOIROGVZLWKLQDVKRUWVSDQ,QWKLVFRQWH[WZHEULQJWR\RXWKHLQYHVWRUV
FRQGHQFHLQFRPPRGLWLHVPDUNHWVDQDWWHPSWRI$VVRFLDWHG&KDPEHUVRI&RPPHUFHDQG,QGXVWU\RI,QGLD $662&+$0
7KHVXUYH\PDGHE\$662&+(0ZDVFDUULHGRXWLQPDMRUFLWLHVRI'HOKL&KHQQDL$KHPGDEDG%DQJDORUH0XPEDL/XGKLDQD
DQG .RONDWWD7KH VXUYH\ KDG FRYHUHG  PDUNHW SDUWLFLSDQWV ZKR FKDQQDOLVH WKH LQYHVWRUV VXUSOXVHV LQ YDULRXV VDYLQJ
LQVWUXPHQWVDPRXQJZKRPFKRRVHWRLQYHVWWKHLUVXUSOXVPRQH\LQWKHUDQJHRI5VODNKWR5VODNKLQWKHFRPPRGLW\
PDUNHWV
7KHVXUYH\IRXQGWKDWDERXWRIWKHFRPPRQLQYHVWRUVLQYHVWEHWZHHQ5VODNKWR5VODNKSHUDQQXPLQWKHFRPPRGLW\
PDUNHWV$WWKHVDPHWLPHRIWKHVXUYH\UHVSRQGHQWLQYHVWHGPRUHWKDQ5VODNKSHUDQQXPLQFRPPRGLWLHVRIWKH
UHVSRQGHQWVRSWHGWRLQYHVWDQDPRXQWORZWKDQ5VODNKSHUDQQXP7KHUHPDLQLQJGLGQRWFODULI\WKHLUSUHVHQFH
2QWKHLQYHVWPHQWLQWHUHVWLQFRPPRGLWLHVRIWKHWRWDOFRPPRGLWLHVZKLFKJHWVWUDGHGDFURVVWKHPDMRUPXOWLFRPPRGLW\
H[FKDQJHVRI1&'(;0&;10&(DQGUHJLRQDOH[FKDQJHV
7KHQGLQJVDUHWDEXODWHGEHORZ
9
UHVSRQGHQWSUHIHUUHGLQYHVWPHQWLQPHWDOFRPSOH[
9
RIWKHUHVSRQGHQWVSUHIHUUHGLQYHVWPHQWVLQDJULSURGXFWVEHFDXVHWKHUHLVDQXQFHUWDLQW\LQWKHVXSSO\DQG
WKHGHPDQGIRUORFDODQGRYHUVHDVFRQVXPSWLRQLVPRUH7KHUHIRUHWUDGHUVDUHPRUHWKDQZLOOLQJWRLQYHVWLQDJULSURGXFWV
DQGHDUQDQDVVXUHGKLJKHUSURW
9
UHVSRQGHQWVSUHIHUWRLQYHVWLQFRIIHH
9
$OPRVWRIWKHVXUYH\HGDUHFKRRVLQJWRSXWWKHLUPRQH\LQUXEEHU
9
RIVXUYH\HGSHRSOHUHVSRQGHGLQWKHQHJDWLYHWRDQ\FRPPRGLWLHVWUDGHGE\WKHPLQWKHPDUNHW
9
*ROGDQGVLOYHUDUHWKHPRVWVRXJKWDIWHUFRPPRGLW\WUDGHGLQFRPPRGLWLHVIXWXUHVPDUNHWZLWKRIWKH
UHVSRQGHQWVFKRRVLQJWRLQYHVWLQWKHP
1RYHPEHU

&RPPRGLWLHV 'HULYDWLYHV_

$UWLFOH

:HDN5HERXQGLQ
2FWREHU

LWVQRUPDOVHDVRQDOVWUHQJWKSHULRG
'RQDOG'RQ\)&6,0)7$
EXW LW KDV VROLG UHVLVWDQFH DW 
':'RQ\ $VVRFLDWHV,QF&DQDGD DQG DJDLQ DW   /RRN IRU
PRGHUDWHJURZWKLQWKLVPRQWK
:KHQPDUNHWVFRUUHFWWKH\QRUPDOO\
2LO KDV PRYHG LQWR WKH WUDGLQJ
GR VR LQ SHUFHQWDJHV RI  
EDQG RI  DQG LV LQ D PXFK
RU   $  SXOO EDFN ZKLFK LV
RYHUVROG SULFH LQ WKH ORZ V
FRQVLGHUHGPLOG ZRXOGSODFHWKH&5%
7KRXJK D ERXQFH LV DQWLFLSDWHG LQ
DW DERXW   $ QRUPDO FRUUHFWLRQ
HDUO\ 2FWREHU ZHDNQHVV GXH WR
LQDEXOOPDUNHWLV7KLVZRXOG
RYHUFDSDFLW\ VKRXOG NHHS SULFHV
SODFH WKH &5% ,QGH[ DW DERXW 
KRYHULQJFORVHUWRWKHUDQJH

XQWLOHDUO\1RYHPEHU
7KLVDUHDRIWUDGLQJLVZKHUHWKH&5%
FRQVROLGDWHG IRU PRVW RI  DQG
JHQHUDO ZHDNQHVV DQG DW WUDGLQJ
ZRXOGUHSUHVHQWJRRGVWURQJVXSSRUW
FRQWLQXLQJ IRU WKH QH[W IRXU ZHHNV
OHYHOLQWKHQHDUIXWXUHLIWKHUHZHUH
1DWXUDO *DV VKRXOG UHPDLQ ZLWKLQ D
DGGLWLRQDOFRUUHFWLRQV$VWKHPDUNHW
EDQGEHWZHHQXQWLOODWH
LVDOUHDG\DWDWWKHWLPHRIWKLV
2FWREHU
ZULWLQJ LQ ODWH 6HSWHPEHU WKHUH LV
OLNHO\ YHU\ OLWWOH GRZQVLGH OHIW ,Q
&RSSHU ZLOO FRQWLQXH WUDGLQJ LQ D
WKHORZHUSRUWLRQRIDERYHFKDUWWKH
QDUURZUDQJHRI$PRYH
PDLQPRQWKWUDGLQJF\FOHJLYHVXV
WRZDUGV WKH XSSHU UDQJH   LV
DQLGHDRIWKHRXWVWDQGLQJWLPHXQWLO
H[SHFWHGLQ2FWREHUDQGOHYHO
WKHERWWRPDUULYHV:HVHHWKDWWKH
LVH[SHFWHGODWHULQWKH\HDU
ODVW WKUHH ORZV ZHUH DSSUR[LPDWHO\
1DWXUDO *DV UHPDLQV RYHUVROG ZLWK

:KDWLVKDSSHQLQJWKLVPRQWK"
7KH FRPPRGLWLHV PDUNHWV &5%
,QGH[ LVSRVLWLRQHGWRUHERXQGIURP
D PXFK RYHUVROG SRVLWLRQ LQ HDUO\
2FWREHU  7KH UDOO\ LV H[SHFWHG WR
EHZHDNLQVWUHQJWKDQGVKRXOGWDNH
WKH LQGH[ XS WR WKH UHVLVWDQFH
OHYHO E\ PLGPRQWK  $QG DIWHU
WKDWGRZQZDUGWRDWSUHVVXUHFDQ

IRXU PRQWKV DSDUW DQG PLGPRQWK


:KHUHLVWKHEXOO"
7KLVZRXOGVWURQJO\VXJJHVWWKDWWKH
EH H[SHFWHG XQWLO WKH UVW KDOI RI
7KHFRPPRGLWLHVPDUNHW &5%,QGH[ 
QDO ERWWRP ZRXOG DUULYH LQ PLG
1RYHPEHU6XSSRUWLVDWDQG
KDVEHHQULGLQJVWHDGLO\KLJKHUQRQ
1RYHPEHU%XWZKDWZRXOGKDSSHQ
7KLV VHFRQG OHYHO LV WKH DQWLFLSDWHG
VWRSDQGVLQFH1RYHPEHULWKDV
IURPQRZXQWLOWKHQ"
ORZE\HDUO\1RYHPEHU
LQFUHDVHGE\RYHU
*ROGLVDOVRVHWWRPRYHXSIURPLWV
PLG6HSWHPEHU ERWWRP DV LW HQWHUV

_&RPPRGLWLHV 'HULYDWLYHV

1RZ OHW XV KDYH D ORRN DW WKH


IROORZLQJ FKDUW 7KLV VKRUWHU WLPH

1RYHPEHU

$UWLFOH
IUDPH FKDUW RI WKH &5% ,QGH[ 7KH PDLQ WUDGLQJ F\FOH UHDFKHG LWV WRJROGDQGJROGVWRFNV
LQGLFDWHV WKDW DQ XSZDUG VZLQJ LV ORZ LQ PLG6HSWHPEHU DW WKH UVW
FRPLQJE\WKHVWDUWRI2FWREHU7KLV PDLQ VXSSRUW OHYHO RI   86'2XWRIJDV
PRYHPHQW LV H[SHFWHG WR EH IDLUO\ ZKLFKZDVWKHROGUHVLVWDQFHOHYHOLQ ,QWKHEHORZFKDUWUHSUHVHQWLQJ86
ZHDNDQGVKRUWLQGXUDWLRQEHFDXVH HDUO\
'ROODU WKHUH LV D UHSHWLWLYH SDWWHUQ
WKHPRUHGRPLQDQWPRQWKF\FOHLV
WKDW KDV FRQWLQXHG IRU DOPRVW VL[
QRZIDOOLQJ
\HDUV D VKRUW UDOO\ DQG LQFUHDVLQJ
ZHDNQHVV

$V JROG LV DOVR HQWHULQJ WKH VWURQJ


,ZRXOGDQWLFLSDWHWKLVUXQWRSXVKWKH GHPDQG WLPH SHULRG IRU ,QGLDQ
&5% ,QGH[ XS WR WKH UHVLVWDQFH MHZHOOHU\WKLVPHWDOVKRXOGEHJLQWR $IWHU D OLPS ULVH IURP PLG$XJXVW
OLQH LQ WKH UVW KDOI RI2FWREHU DQG GHYHORS XSZDUG SUHVVXUH IURP QRZ  WKH 86' EDQJHG RQ WR WKH
UROORYHUWRHLWKHUWKHOHYHORUDW XQWLO'HFHPEHUUHSHDWHG
RYHUKHDG UHVLVWDQFH OHYHO RI 
DZRUVWFDVHVFHQDULRWKHPDUN
DQGKDVVWDOOHGRXW
E\PLG1RYHPEHU
+RZHYHU WKHUH DUH D QXPEHU RI
RYHUKHDGUHVLVWDQFHOHYHOVWKDWJROG ,QWKHORZHUSRUWLRQRIWKHFKDUWOLHV
*ROG7KHVWDUWRIDQXSWUHQG
ZLOO QHHG WR FRQTXHU EHIRUH LW FDQ WKHPDLQWUDGLQJF\FOHIRUWKH'ROODU
*ROG LV QRZ HQWHULQJ LWV VWURQJHVW PRXQW SULFHV DQ\ZKHUH QHDU  ,W LQGLFDWHV WKDW WKH SHDN KDV EHHQ
VHDVRQDO GHPDQG SHULRG ZKLFK KDV 7KHUVWOHYHOLV7KLVOLQH UHDFKHG LQ ODWH 6HSWHPEHU DQG WKH
WLPH GXUDWLRQ RI DERXW  PRQWKV JDYHVROLGVXSSRUWWRJROGWKURXJKRXW QH[W DQWLFLSDWHG ORZ VKRXOG EH LQ
,W XVXDOO\ EHJLQV LQ 6HSWHPEHU RU WKH VXPPHU DQG ZLOO OLNHO\ SURYLGH HDUO\WRPLG'HFHPEHU
2FWREHUDQGFDUULHVRQXQWLODSULFH VRPH VWLII UHVLVWDQFH QRZ  2QFH 7KLV WHFKQLFDO HYLGHQFH RI D
SHDNLQ'HFHPEHU
WKURXJKWKDWOHYHOFRXOG ZHDNHQLQJ 'ROODU KHOSV WR DGG
JLYHJROGVRPHVKRUWWHUPSUREOHPV VWUHQJWK WR WKH VWDUW RI WKH JROG
, KDYH PHQWLRQHG EHIRUH WKDW JROG LQLWVDGYDQFH
VHDVRQ DQG LW DOVR VXJJHVWV WKDW D
WUDGHV RQ DQ DSSUR[LPDWH ZHHN
SULFHSHDNLQJROGPD\KDSSHQLQWKH
F\FOH7KLVDOVRPHDQVWKDWJROGFDQ
UVWKDOIRI'HFHPEHU
,I JROG FDQ EUHDN DERYH WKHVH WZR
WUDGH RQ PXOWLSOHV RI WKLV GRPLQDQW
NH\ OHYHOV WKH WHFKQLFDO SURMHFWLRQ
F\FOH DQG WKDW LV H[DFWO\ ZKDW
%XWWKHUHDUHVHYHUDOEODFNFORXGV
LVEDFNWRWKHROG0D\KLJK$V
DSSHDUV WR EH KDSSHQLQJ LQ HDUO\
WKDW UHPDLQ LQ WKH EDFNJURXQG
PRVWLQYHVWRUVYLHZJROGLQ86'WKH
2FWREHU
ZKLFKFRXOGNHHSWKLV\HDUVVHDVRQDO
WUDGLQJGLUHFWLRQRIWKH86'ROODULV
PRYHPHQWORZ
DQ LPSRUWDQW DGGLWLRQDO FRPSRQHQW

1RYHPEHU

&RPPRGLWLHV 'HULYDWLYHV_

$UWLFOH
7KH UVW LVVXH LV WKH JHQHUDO XSZDUG SUHVVXUH GHYHORSLQJ XQWLO 7KHSUREOHPDSSHDUVWREHWKDWWKH
FRPPRGLWLHV PDUNHW  $V GLVFXVVHG 'HFHPEHU
VXSSO\ LV IRU D YHU\ WKLUVW\ ZRUOG
HDUOLHULQWKLVVHFWLRQWKH&5%,QGH[
$FFRUGLQJ WR WKH /RQGRQ 0HWDO
LV VHW IRU D WHFKQLFDO ORZ LQ PLG
1RYHPEHU  7KRXJK JROG QRUPDOO\
OHDGV WKH RWKHU FRPPRGLWLHV
EHFDXVH LW LV WKH PRVW VHQVLWLYH

&RSSHU6WURQJLQDVORZGRZQ"
$OOIXQGDPHQWDOSURMHFWLRQVLQGLFDWH
WKDW D 86 VORZGRZQ LV DURXQG
WKH FRUQHU  7KH +RXVLQJ PDUNHW

([FKDQJH /0( WKHUHDUHRQO\DERXW


 WRQV RI H[WUD LQYHQWRULHV
DYDLODEOH  7KDW HTXDOV OHVV WKDQ
WKUHH GD\V RI JOREDO FRQVXPSWLRQ

WR LQDWLRQ  WKHUH PD\ EH VRPH


GRZQZDUGSUHVVXUHH[HUWHGRYHUWKH
QH[W IHZ ZHHNV  5HPHPEHU JROG
WUDGHVRQDZHHNF\FOH

LV GHFOLQLQJ HPSOR\PHQW JURZWK


KDV VWDOOHG DQG WKH \LHOG FXUYH LV
LQYHUWHG
&RSSHU GXH WR LWV GHHS FRQQHFWLRQV

$Q\ VOLJKW LPEDODQFH LQ WKH VXSSO\


WR GHPDQG WHHWHUWRWWHU FDQ VHQG
WKH UHG PHWDO KLJKHU UHJDUGOHVV RI
ZHDNHU86HFRQRPLFGDWD

QR SXQ LQWHQGHG  WR WKH HFRQRP\


$QG ZLWK WKH ODVW ORZ LQ PLG XVXDOO\ PLUURUV WKH EXVLQHVV DQG :LWK GHFDGHV RI ORZ H[SORUDWLRQ
6HSWHPEHU DQRWKHU ORZ LQ HDUO\ PDUNHWF\FOHV
IURP QHZ PLQHV DQG WKH HPHUJLQJ
WRPLG1RYHPEHU ZRXOG W WKH
GHPDQGIURP$VLDQFRXQWULHVWKHUH
SDWWHUQ 7KH RWKHU LVVXH LV WKH <HW FRSSHU UHPDLQV VWXEERUQO\ LQ D VHHPVWREHDQHZEDFNVHDWGULYHUWR
FRSSHU7KLVPHWDOZLOOOLNHO\PRYH
WRWKHJOREDOEXVLQHVVF\FOHDQGQRW
MXVWWKHGUXPEHDWRIWKH86
7HFKQLFDOO\ WKHUH LV JRRG VXSSRUW
DW  DQG UHVLVWDQFH DW 
$Q\ PRYHPHQW WKURXJK WKRVH OHYHOV
ZLOOVLJQDODFKDQJHLQWUHQGHLWKHU
FRQVROLGDWLRQ SDWWHUQ WKDW DFWXDOO\ XS RU GRZQ  &XUUHQWO\ WKH EX\LQJ
86'  7KH ORQJHUWHUP YLHZ RI WKH KDVXSZDUGWUDGLQJSUHVVXUHEDFNWR SUHVVXUH SRLQWV XS ZLWK D \HDUHQG
FXUUHQF\ SRLQWV WR D SULPDU\ F\FOH LWVROGKLJKVRIDOPRVW:KDW WDUJHWRI
ORZLQ1RYHPEHUDQGZLWKLQFUHDVLQJ LVKDSSHQLQJ"
86'$DQWLFLSDWHVKLJKHU,QGLDQVXJDURXWSXW
$FFRUGLQJWR86'HSDUWPHQWRI$JULFXOWXUHVXJDURXWSXWLQ,QGLDLVOLNHO\WRWRXFKODNKWRQVLQWKHVHDVRQDV
FRPSDUHGWRODNKWRQVODVW\HDUGXHWRDQH[SHFWHGEXPSHUVXJDUFDQHFURSDQGORZHUGLYHUVLRQRIFDQHIRUSURGXFWLRQ
RIDOWHUQDWHVZHHWHQHUVOLNHJXU7KLVZRXOGEHWKUHHODNKWRQVPRUHWKDQWKH&HQWUHVHVWLPDWHIRUWKHSHULRG7KHUHSRUW
IRUHFDVWVVXJDUFDQHSURGXFWLRQLQWKHVHDVRQWREHDWDUHFRUGPLOOLRQWRQVDVDJDLQVWPLOOLRQWRQVLQWKH
ODVWVHDVRQ
:KLOHDFFRUGLQJWRRIFLDOVRXUFHVIURPWKH,QGLDQJRYHUQPHQW,QGLDLVH[SHFWHGWRSURGXFHDTXDQWLW\RIPLOOLRQ
WRQVRIZKLWHVXJDULQWKH\HDUWR6HSWHPEHUVHDVRQ7KHRXWSXWLQWKHFXUUHQWVHDVRQLVOLNHO\WRULVHE\IURP
PLOOLRQWRQVSURGXFHGLQWKHVHDVRQWKDWHQGHGRQ6HSWHPEHU7KHJRYHUQPHQWKDGHDUOLHUHVWLPDWHGDQRXWSXWRI
PLOOLRQWRQVLQ 2FW6HS 7KHFDQHRXWSXWIRULVHVWLPDWHGDWPLOOLRQWRQVDJDLQVWUVWDGYDQFH
HVWLPDWHVRIPLOOLRQWRQV,QGLDSURGXFHGPLOOLRQWRQVRIFDQHLQ*LYHQWKHKLJKHUOHYHORISURGXFWLRQ
HVWLPDWHV,QGLDLVH[SHFWHGWRH[SRUWPLOOLRQWRQVRIVXJDU

_&RPPRGLWLHV 'HULYDWLYHV

1RYHPEHU

$UWLFOH

&RWWRQRQDUPIRRWLQJ
)XQGDPHQWDOGHYHORSPHQWVLQWKHFRWWRQ
HFRQRP\ ERWK LQ ,QGLD DQG WKH UHVW RI
WKHZRUOGSRLQWWRUPHUSULFHVWKDQNV
WR VWDJQDQW SURGXFWLRQ VWHDG\ JURZWK
LQ GHPDQG IRU FRWWRQ DQG GZLQGOLQJ
FORVLQJ VWRFNV *LYHQ WKH IXQGDPHQWDO
GHYHORSPHQWFRWWRQFDQEHFRQVLGHUHG
D JRRG LQYHVWPHQW GXULQJ WKH SHDN
DUULYDO VHDVRQ RI 1RY'HF 6SHFLFDOO\
WKHPHGLXPORQJDQGH[WUDORQJVWDSOH
YDULHWLHVDUHH[SHFWHGWRZLWQHVVDWOHDVW
DSSUHFLDWLRQLQSULFHVLQWKHQH[W
VL[PRQWKV
,QGLDQ FRWWRQ LQGXVWU\ LV H[SHFWHG WR
EHQHW IURP WKH FXUUHQW VFHQDULR RQ
DFFRXQWRIWKHIROORZLQJ
3RVWTXRWDUHJLPH)DYRXUDEOHFOLPDWH
IRU,QGLDQFRWWRQSURGXFHV
*URZLQJDSSHWLWHIRUFRWWRQDVWKHUH
LVDVLJQLFDQWLQFUHDVHLQWKHPLOODQG
VSLQGOHFDSDFLWLHV
%LODWHUDO  PXOWLODWHUDO WUDGH
DJUHHPHQWVIDFLOLWDWLQJEHWWHUWUDGH

GHFOLQHG IURP  LQ  WR  LQ


7KLVWUHQGLVOLNHO\WRFRQWLQXH
LQ WKH FRPLQJ VHDVRQ WRR GXH WR WKH
IROORZLQJUHDVRQV
+LJKHUGRPHVWLFFRQVXPSWLRQ
,QGLDQ FRWWRQ LPSRUWV DUH OLNHO\ WR
FRPHXQGHUSUHVVXUHLQWKHHYHQWRI
KLJKHU LQWHUQDWLRQDO SULFHV +LJKHU
ODQGHGFRVWVZLOOPDNHFRWWRQLPSRUWV
XQYLDEOH
+LVWRULFDOO\ WKH VKDUH RI *XMDUDW
,QGLD LV H[SHFWHG WR EHQHW IURP
0DKDUDVWUD$QGKUD 3UDGHVK DQG 3XQMDE
WLJKWQHVV LQ JOREDO VXSSO\ HVSHFLDOO\
LQFRWWRQSURGXFWLRQKDVEHHQ
IURP&KLQD
DQGUHVSHFWLYHO\
3URGXFWLRQHVWLPDWHGWREHDW
+HDY\UDLQVDQGRRGVKDYHGDPDJHGWKH
FURS LQ FHUWDLQ SDUWV RI 0DKDUDVWUD DQG
*XMDUDW 7KLV KDV UHVXOWHG LQ ORZHULQJ
WKHFRWWRQSURGXFWLRQIRUHFDVWIURPWKH
LQLWLDOOHYHORIODNKEDOHVWRDURXQG
 ODNK EDOHV RI  NJ ,Q 
VHDVRQ ,QGLD SURGXFHG DERXW  ODNK
EDOHVRINJHDFK

,QGLDQ&RQVXPSWLRQWRLQFUHDVHE\
,QGLDQFRWWRQFRQVXPSWLRQLVH[SHFWHGWR
EHODNKEDOHVLQVHDVRQD
LQFUHDVHRYHU1HZFRWWRQ
VSLQQLQJFDSDFLWLHVDQGH[SDQVLRQRIWKH
H[LVWLQJRQHVDUHH[SHFWHGWRFRQWULEXWH
WRWKLVLQFUHDVH

([SRUWVDQGLPSRUWV
,QGLDQFRWWRQQGVLWVPDUNHWVLQ&KLQD
%DQJODGHVKDQG)DU(DVWQDWLRQV([SRUWV
,QGLDQ&RWWRQVFHQDULR
RI FRWWRQ IURP ,QGLD KDYH VKRZQ D
%LJMXPSLQDUHDXQGHUFRWWRQ
VXUJH GXH WR KLJKHU VXSSOLHV DQG SULFH
$UHD XQGHU FRWWRQ KDV EHHQ VWHDGLO\
FRPSHWLWLYHQHVV ,QGLD H[SRUWV PHGLXP
LQFUHDVLQJIURPODNKKDLQ
DQG ORQJ VWDSOH FRWWRQ WR WKH ZRUOG
VHDVRQ WR WKH HVWLPDWHG  ODNK KD LQ
PDUNHWV
$UHDLQFUHDVHZDVVLJQLFDQWLQ
*XMDUDW   3XQMDE   0DKDUDVWUD
,QGLD LPSRUWV PRVWO\ ([WUD /RQJ 6WDSOH
  DQG .DUQDWDND   ZKLOH $QGKUD
FRWWRQ IURP WKH 86 DQG (J\SW 2Q WKH
3UDGHVK   DQG 5DMDVWKDQ  
LPSRUWIURQWDGHFOLQHLQFRWWRQLPSRUWV
ZLWQHVVHGDGHFOLQHLQDUHD
ZDV VHHQ DV WKH GRPHVWLF PLOOV ZHQW
$UHDXQGHU%WFRWWRQKDVVWHDGLO\JURZQ VORZLQLPSRUWLQJDWKLJKHULQWHUQDWLRQDO
IURPXQGHUODNKKDWRDQHVWLPDWHG SULFHV
ODNKKDLQWKHFXUUHQWVHDVRQWKDQNVWR 6WRFNWRXVHUDWLRDFDXVHRIFRQFHUQ
ORZHU %W &RWWRQ VHHG SULFHV DQG KLJKHU &RWWRQVWRFNVDVDSHUFHQWRIXVDJHKDYH
HOGOHYHOUHDOL]DWLRQ
1RYHPEHU

*OREDOFRWWRQSURGXFWLRQFRQVXPSWLRQ
DQGVWRFNVVXSSRUWUPSULFHV
*OREDO FRWWRQ SURGXFWLRQ IRU 
LV HVWLPDWHG WR EH PDUJLQDOO\ ORZHU DW
 PLOOLRQ EDOHV DV FRPSDUHG WR 
PLOOLRQEDOHVLQVHDVRQ$VLDQ
FRXQWULHV ZLWK WKH H[FHSWLRQ RI ,QGLD
DUHH[SHFWHGWRSURGXFHOHVV
&RQVXPSWLRQIRUVHDVRQRQWKH
RWKHU KDQG LV HVWLPDWHG DW  PLOOLRQ
EDOHVFRPSDUHGZLWKPLOOLRQEDOHV
LQVHDVRQ8QOLNHSURGXFWLRQ
FRQVXPSWLRQ KDV EHHQ JURZLQJ VWHDGLO\
GXULQJWKHODVWWKUHH\HDUVGHSOHWLQJWKH
VWRFNV
&ORVLQJVWRFNVDUHHVWLPDWHGDWPLOOLRQ
EDOHVDVFRPSDUHGWRPLOOLRQEDOHV
LQVHDVRQ
$WWKHJOREDOOHYHOVWRFNWRXVHUDWLRRI
FRWWRQLVHVWLPDWHGWREHORZHUDWLQ
ZKLFKLVWKHORZHVWLQWKHODVW
VHDVRQV+LVWRULFDOO\VWRFNWRXVHUDWLR
ZDVGXULQJVHDVRQ
&RPPRGLWLHV 'HULYDWLYHV_

$UWLFOH
6HWEDFNWR/RFDWLRQ%DVHG3UHPLXP'LVFRXQW7KHRU\

)URP)U\LQJ3DQWR)LUH

$VKRN.XPDU*DQJZDO

1&'(; SUDFWLFHG WKH V\VWHP RI 1&'(;KDVODXQFKHGIXWXUHVFRQWUDFWV


ORFDWLRQEDVHGSUHPLXPRUGLVFRXQW RI:KHDWIRU$SULO7KH:KHDW
LQIXWXUHFRPPRGLW\PDUNHWIRUWKH FRQWUDFW LV EDVHG RQ 'HOKL 7KH
SDVW WZR \HDUV ,W PHDQW WKDW WKH GHOLYHU\ RI WKH DERYH FRPPRGLW\
H[FKDQJH DOORFDWHG WKH GHOLYHU\ RI FDQ WDNH SODFH DW $KHPGDEDG
FRPPRGLW\ WR EX\HUV DW GHOLYHU\ 5DMNRW .DQSXU RU .DUQDO DW SDU
FHQWHUV RWKHU WKDQ SULPH FHQWHU ZLWK SULPH FHQWHU 'HOKL ,W PHDQV
VXEMHFWWRWKHSUHPLXPDQGGLVFRXQW DFURVV WKH FRXQWU\ ZKHDW VKDOO EH
[HGE\H[FKDQJH

DYDLODEOHDWSULFHVLQSDUZLWK'HOKL

WKURXJK H[FKDQJH WUDGHG IXWXUH


7KLV SUHPLXP RU GLVFRXQW ZDV FRQWUDFW 7KH V\VWHP RI ORFDWLRQ
QDOL]HG EHIRUH ODXQFKLQJ WKH QHZ EDVHG SUHPLXP GLVFRXQW KDV EHHQ
FRQWUDFW RI SDUWLFXODU FRPPRGLW\ FRPSOHWHO\DEDQGRQHG

HWF  7KH SULPDU\ PRWLYH RI WKH


RXUPLOOPD\KDYHEHHQWRKHGJH
DJDLQVW LWV IXWXUH UHTXLUHPHQW

7KH H[FKDQJH FODLPHG WKDW VXFK


7KDW SXUSRVH LV FRPSOHWHO\ ORVW
SUHPLXPRUGLVFRXQWZDVGHWHUPLQHG %HQHWV 7KH RQO\ EHQHW IURP WKH
WKURXJKWKLVGHOLYHU\PHFKDQLVP
RQ WKH EDVLV RI SDVW GDWD VXUYH\V QHZ DW SDU GHOLYHU\ RIFRPPRGLWLHV
'LIIHUHQW SDUWV RI WKH FRXQWU\
VWDWLVWLFV HWF ,Q SUDFWLFH [DWLRQ DFURVV WKH GHOLYHU\ FHQWHUV WKURXJK
ZLWQHVV GLIIHUHQW FURS F\FOH
RIGLVFRXQWRUSUHPLXPIRUDIXWXUH H[FKDQJH LV WKDW WKH GHOLYHU\ ZLOO
SDWWHUQ 7KLV LQ WXUQ DIIHFWV WKH
GDWH LQ D G\QDPLF FRPPRGLW\ WDNH SODFH IURP FKHDSHVW FHQWHU
ORFDO SULFLQJ RI WKH FRPPRGLW\
PDUNHW ZDV QHYHU DFFXUDWH $V D IURP WKH VHOOHU SRLQW RI YLHZ ZKLFK
)RU H[DPSOH ZKHDW LV KDUYHVWHG
UHVXOW WKH ELJJHVW DGYDQWDJH RI LVMXVWNQRZQDVFRPSHWLWLYHELGGLQJ
LQ $KPHGDEDG UHJLRQ GXULQJ UVW
IXWXUHVPDUNHWLHKHGJLQJZDVORVW V\VWHPRUWHQGHUV\VWHP
ZHHN RI 0DUFK  7KH ORFDO SULFH
IRUPDQ\WUDGHUV
RI ZKHDW DW $KPHGDEDG UXOHV
'LVDGYDQWDJHV

ZD\ EHORZ 'HOKL VSRW SULFH LQ
1RZ1&'(;DSSHDUVWRKDYHUHDOL]HG 7KHWUDGHUVPLOOHUVKDYHWRSLFNXS
HDUO\ 0DUFK 7KH IROORZLQJ WDEOH
GHOLYHULHVIURPWKHFHQWHURIWKHLU
WKH VKRUWFRPLQJV RI SUHPLXP
KLJKOLJKWVWKHVDPH
FKRLFH VXEMHFW WR DYDLODELOLW\ RI
GLVFRXQW SROLF\  7KHUHIRUH LW KDV
WKHFRPPRGLW\,WPD\VRKDSSHQ
GHFLGHGWRVKLIWWRDQHZV\VWHPRI
DW SDU GHOLYHU\ PHDQLQJ GHOLYHU\
RI FRPPRGLW\ DFURVV WKH FRXQWU\
RU DGGLWLRQDO GHOLYHU\ FHQWHUV DW
WKH EHQFKPDUN VSRW SULFH RI SULPH
FHQWHU  7KH QHZ V\VWHP UHVXOWV LQ
DW SDU GHOLYHU\ RI FRPPRGLWLHV
EHWZHHQ FRQVXPLQJ DQG SURGXFLQJ
FHQWHUVWKURXJKWKHH[FKDQJH

_&RPPRGLWLHV 'HULYDWLYHV

6SRW
6SRW
3ULFH
SULFHRI SULFHRI
GLIIHU
:KHDW
:KHDW
HQFHV
'HOKL  $EDG 
LQDJH
5VSHU 5V3HU
DSS
TWO
TWO
WK
 0DUFK   




WK0DUFK   




WK2FW   





WKDW D 'HOKL EDVHG RXUPLOO PD\


EH UHTXLUHG WR DFFHSW ZKHDW DW 'DWH
5DMNRW RU .DQSXU 7KHUH H[LVW
OLWWOH FRUUHODWLRQV EHWZHHQ VSRW
SULFHV RI ZKHDW LQ 'HOKL PDUNHWV
DQG SULFHV SUHYDOHQW DW RWKHU
ORFDWLRQV EHFDXVH RI IDFWRUV OLNH
FURS F\FOH GHPDQG DQG VXSSO\

1RYHPEHU

$UWLFOH
%LOOLQJ DW 'HOKL VSRW SULFH DV RQ
5HODWLRQVKLS EHWZHHQ 'HOKL DQG
GDWH RI H[SLU\ RI FRQWUDFWV IRU
$KPHGDEDG SULFHV LV H[DFWO\
DOOWUDGHVDFURVVWKHFRXQWU\PD\
RSSRVLWH LQ 2FWREHU YLVjYLV
FDXVH KDUGVKLSV WR ERWK EX\HUV
0DUFK ([WUDSRODWLRQ RI WKLV
H[HUFLVH DFURVV VHYHUDO GHOLYHU\
FHQWHUV YLVjYLV 'HOKL ZRXOG
IXUWKHU EULQJ RXW OLPLWDWLRQV RI
KHGJLQJ

DQG VHOOHUV 7KH WUDGHUV KDYH WR


MXVWLI\ WKH GLIIHUHQFH EHWZHHQ
ORFDO SULFH YLVjYLV ELOOLQJ SULFH
7KHUH PD\ EH WD[ DQG RWKHU
UHJXODWRU\LPSOLFDWLRQV

GLUHFWLRQ 3DULW\ LQ SULFH DFURVV


SURGXFLQJDQGFRQVXPLQJFHQWHUV
PDNHVQRHFRQRPLFVHQVH
6XJJHVWLRQ

7KH EHQFKPDUN VSRW SULFH
RIFRQVXPLQJFHQWHU'HOKLLQFDVHRI
:KHDW KDV QR UHOHYDQFH RWKHU WKDQ
PLVJXLGLQJ WKH WUDGHUV 6XLWDEOH

&RPPRGLW\ LV D VWDWH VXEMHFW 7KH FRVW FRPSHWLWLYH SURGXFHU ZHLJKWHGDYHUDJHSULFHVSUHYDOHQWDW


7KHUHPD\EHUHVWULFWLRQVRQIUHH
VKDOO VWDQG WR EHQHW IURP WKH LPSRUWDQWFHQWHUVZRXOGEHDEHWWHU
PRYHPHQW RI WKH FRPPRGLW\
QHZV\VWHP
VXEVWLWXWH  $OWHUQDWLYHO\ D V\VWHP
DFURVVVWDWHV
&RVWRIWUDQVSRUWDWLRQFRPSOHWHO\ RI ZKHDW FRQWUDFWV EDVHG RQ ]RQHV
$SSOLFDEOH WD[HV PD\ YDU\ IURP
ORVHV LWV UHOHYDQFH LQ WKH DERYH (DVW:HVW1RUWKDQG6RXWK VKRXOG
RQHVWDWHWRDQRWKHU
V\VWHP
EH LQWURGXFHG  6HSDUDWH FRQWUDFWV
:KLOH DW SDU IDFLOLW\ LV EHLQJ 7KHUH DUH QR SULFH GLIIHUHQFHV IRUSURGXFLQJDQGFRQVXPLQJFHQWHUV
RIIHUHG IRU ZKHDW 1&'(;
EHWZHHQ FRQVXPLQJ FHQWHUV DQG PD\DOVREHFRQVLGHUHG
FRQWLQXHVZLWKSUHPLXPGLVFRXQW
PHFKDQLVPIRUFKDQD7KLVVKRZV

SURGXFLQJ FHQWHUV 1HZ WKHRU\ 


7KH UHJXODWRU RI IXWXUHV
VXJJHVWVWKDWWKH1RUWKDQG6RXWK FRPPRGLW\ PDUNHW )0& VKRXOG

ODFNRIFODULW\RQWKHVXEMHFW

3ROHRIPDJQDWHIXQFWLRQLQVDPH WDNHDSSURSULDWHYLHZRQWKHDERYH
VXEMHFW

'LVFODLPHU9LHZVH[SUHVVHGKHUHLQDUHSHUVRQDOYLHZVRIWKHDXWKRU7KHVXJJHVWLRQVKDYHEHHQPDGHZLWK
RYHUDOOLQWHUHVWRIHIFLHQWPDQDJHPHQWRIFRPPRGLWLHVPDUNHW

)0&ZDUQVH[FKDQJHVRQFLUFXODUWUDGHVLQLOOLTXLGFRXQWHUV
)RUZDUG0DUNHWV&RPPLVVLRQ )0& KDVZDUQHGFRPPRGLW\H[FKDQJHVRIFLUFXODUWUDGHVDWDEQRUPDOSULFHV
LQ D KRVW RI LOOLTXLG FRPPRGLW\ FRXQWHUV ,Q WKLV UHJDUG )0& VRXUFHV UHYHDOHG WKDW LW KDV IRXQG WUDFHV
RIVLJQLFDQWDPRXQWRIVXFKDEQRUPDOWUDGLQJGRQHEHWZHHQWKHVDPHFOLHQWRUFOLHQWVRIDPHPEHURU
EHWZHHQWZRPHPEHUVRIDFRPPRGLW\H[FKDQJH,WLVNQRZQWKDWDFFRUGLQJO\WKHFRPPLVVLRQKDVDVNHG
WKHH[FKDQJHVWRNHHSVWULFWYLJLORQWKHWUDGLQJSDWWHUQHVSHFLDOO\LQWKHLOOLTXLGFRXQWHUVDQGWDNHSHQDO
DFWLRQDJDLQVWWKRVHLQYROYHG5HVSRQGLQJWR)0&VDGYLFH0&;KDGLVVXHGDQRWLFH 0&; RQ2F
WREHUGHVFULELQJVXFKWUDGHVDVXQZDUUDQWHGXQHWKLFDODQGXQEHFRPLQJRQWKHSDUWRIDPHPEHU
7KHH[FKDQJHPD\OHY\SHQDOW\IRUQRQFRPSOLDQFHRQSHULQVWDQFHEDVLVLQFOXGLQJLQLWLDWLRQRIGLVFLSOLQDU\
DFWLRQV,WKDVZDUQHGWKDWWKHGHWDLOVRIWKHSDUWLFLSDQWVLQVXFKDEQRUPDOWUDGHVZLOOEHVHQWWR)0&DV
DQGZKHQUHTXLUHG,OOLTXLGFRXQWHUV ZKLFKFRQVWLWXWHWKHEXONRIWKHRIIHULQJVRIDQ\FRPPRGLW\IXWXUH
H[FKDQJH DUHRIWHQZLWQHVVLQJFLUFXODUWUDGLQJDWDEQRUPDOSULFHVZKLFKDUHQRWLQFRQVLVWHQF\ZLWKWKH
VSRWRUIXWXUHPDUNHWSULFHVRIWKHXQGHUO\LQJFRPPRGLW\

1RYHPEHU

&RPPRGLWLHV 'HULYDWLYHV_

0DUNHW:DWFK

([FKDQJH7UDGHG&RPPRGLWLHV
3HUIRUPDQFHIRUWKHPRQWKRI2FWREHU
1&'(;7RS*DLQHUV
2SHQLQJ &ORVLQJ
&RPPRGLW\
9DU 
3ULFH
3ULFH
3RWDWR



*XDU*XP



*XDU6HHGV



<HOORZ5HG0DL]H



8UDG'HVL



&RPPRGLW\
=LQF
*XDUVHHG
1DWXUDOJDV
8UDG
3RWDWR

0&;7RS*DLQHUV
2SHQLQJ3ULFH &ORVLQJ3ULFH 9DU 
















&RPPRGLW\
5XEEHU
*XDUVHHG
5DZ-XWH

10&(7RS*DLQHUV
2SHQLQJ3ULFH &ORVLQJ3ULFH 9DU 










3RWDWR 3ULFHV XS RQ GHOD\HG DUULYDO DQG GHSOHWLQJ


VWRFNV
*XDU FRPSOH[ 3ULFHV XS DV QR UDLQIDOO LQ PDMRU
JURZLQJDUHDV
0DL]H3ULFHVXSEDFNHGE\FURSGDPDJHUHSRUWV
8UDG'DPDJHVLQWKHNKDULIFURSDQGGHPDQGDKHDG
RIIHVWLYDOV
1DWXUDOJDV6SHFXODWLRQDKHDGRIFROGHUZLQWHULQ86
5XEEHU LPSURYHPHQW RQ UDLQV LQ PDMRU JURZLQJ
UHJLRQVDQGGHFOLQHLQDUULYDO
=LQF6XSSO\FRQFHUQV

1&'(;7RS/RVHUV
&RPPRGLW\
2SHQLQJ3ULFH &ORVLQJ3ULFH
&KLOOL/&$


7XUPHULF


3HSSHU


0HQWKDRLO


%UHQW&UXGH2LO



9DU 






&RPPRGLW\
&DUGDPRP
3HSSHU
-HHUD
0HQWKDRLO
$UHFD
&DUGDPRP

0&;7RS/RVHUV
2SHQLQJ3ULFH &ORVLQJ3ULFH













&RPPRGLW\
&DUGDPRP
3HSSHU
&KDQD

10&(7RS/RVHUV
2SHQLQJ3ULFH &ORVLQJ3ULFH 9DU 

 

 




9DU 







6SLFH FRPSOH[ ZDV WKH PDMRU ORVHUV LQ WKH PRQWK


6XEGXHGGHPDQGIURPXSFRXQWU\PDUNHW&KLOOLHVIHOO
RQ TXDOLW\ IDFWRU WXUPHULF GHFOLQHG RQ JRRG VWRFNV
IDYRXUDEOHZHDWKHULQWKHPDMRUWXUPHULFDUHDVSHSSHU
GULIWHG RQ OLPLWHG EX\LQJ -HHUD UHWUDFHG RQ OLPLWHG
H[SRUWDQGH[SRUWEX\LQJ
1RWH
7KH RSHQLQJ SULFHV DV RQ 2FWREHU   DQG FORVLQJ
SULFHDUHDVRQ2FWREHU
3ULFHVZHUHIRU1RYHPEHU&RQWUDFWV

)RU&RUSRUDWH7UDLQLQJ3URJUDPPHV:RUNVKRSVRQXQGHUVWDQGLQJDQG
XVLQJ&RPPRGLW\'HULYDWLYHVSURWDEO\FRQWDFW
7HO

(PDLOPNWJ#IEVSOFRP
_&RPPRGLWLHV 'HULYDWLYHV

1RYHPEHU

6 S R W 0 D U N H W V

'RPHVWLF6SRW0DUNHW5HYLHZ
&RPPRGLW\

0RYHPHQWV

7XUPHULF
1L]DP8QSROLVKHGQJHU

3ULFHVGLS

&KLOOL *XQWXU/&$

3ULFHVXS

3HSSHU .RFKL*DUEOHG

3ULFHVVOLG

-HHUD 8QMKD

3ULFHVGLS

5XEEHU 566.RWWD\DP

3ULFHVXS

&KDQD 'HOKL
8UDG 'HOKL
7XU 'HOKL
6XJDU0 0XPEDL
:KHDW 'HOKL
6R\DEHDQ ,QGRUH
*XDU*XP -RGKSXU
0DL]H 1L]DP
&DVWRURLO 5DMNRW

3ULFHVXS

3ULFHVGHFOLQH
3ULFHVGHFOLQH
3ULFHVGLS
3ULFHVLPSURYH
3ULFHVHDVH
3ULFHLQFUHDVH

3ULFH 5HDVRQV
6XEGXHGGHPDQG
5VSHUTXLQWDO 5V +LJKHUVWRFNV
*RRGFURSVWDWXV
*RRGGHPDQG
5VSHUTXLQWDO 5V 6KRUWDJHRITXDOLW\PDWHULDOV
'HSOHWLQJVWRFNV
3RRUH[SRUWEX\LQJ
5VSHUTXLQWDO 5V
/DFNRIGRPHVWLFGHPDQG
3RRUGRPHVWLFGHPDQG
5VSHUTXLQWDO 5V
/DFNRIH[SRUWHQTXLULHV
3RRUWDSSLQJ
5VSHUTXLQWDO 5V /RZDUULYDOV
*RRGGHPDQG
'RPHVWLFIHVWLYDOGHPDQG
5VSHUNJ 5V /RZSLSHOLQHVWRFNVDQGOLPLWHG
VXSSO\
6XSSO\SUHVVXUH
5VSHUNJ 5V
+LJKHUOHYHOUHVLVWDQFH
$UULYDOSUHVVXUH
5VSHUNJ 5V
/RZEX\LQJ
5VSHUNJ 5V %DODQFHGGHPDQGDQGVXSSO\
/RZVWRFNV
5VSHUNJ 5V
6WHDG\JOREDOPDUNHWV
5VSHUNJ 5V $UULYDORIQHZFURS
$EVHQFHRIUDLQLQJXDUJURZLQJ
5VSHUNJ 5V EHOWV

3ULFHVGRZQ
3ULFHVXS

5VSHUNJ 5V (DVHVRQIUHVKVXSSOLHV


([SRUWEX\LQJ
5VSHUNJ 5V
(VWLPDWHVRIORZFDVWRUVHHGFURS

1RWH3ULFHVLQGLFDWLYHDUHIRUWKHSHULRG2FWREHUGD\V)LJXUHLQSDUHQWKHVLVLQGLFDWHVSULFHVGXULQJ
6HSWHPEHUGD\V

6SRW0DUNHWV
&RPPRGLW\

0DUNHW

&ORVHDVRQ2FW


&ORVHRQ6HS


&ORVHRQ2FW


2LOVHHGVFRPSOH[ 5V.J
6HVDPHH[SHOOHU673DLG
6R\RLOUHQHGLPSRUWHG67([WUD
6R\RLOUHQHG
6XQRZHUVROUHQHG
6XQRZHUH[S5HI
6XQRZHU([S
*URXQGQXWRLO67H[WUD
*URXQGQXWRLO 1HZ7LQ 7D[SDLG
*URXQGQXWRLO 2OG7LQ 7D[SDLG
&RWWRQVHHGRLO5HQHG
.DUGLH[SHOOHU673DLG

0XPEDL
0XPEDL
,QGRUH
0XPEDL
0XPEDL
0XPEDL
5DMNRW
5DMNRW
5DMNRW
5DMNRW
0XPEDL































1$
1$
1$

1RYHPEHU



&RPPRGLWLHV 'HULYDWLYHV_

6 S RW  0DU N H W V
&RPPRGLW\
5%'3DOPROHLQ,PSRUWHG
3DOPRLO
0XVWDUG'HRLOHGFDNH
6R\PHDO ([IDFWRU\
6XQRZHUH[WUDFWLRQ
*URXQGQXW'HRLOHGFDNH
0XVWDUGVHHG
*URXQGQXWVHHG %ROG
*URXQGQXWVHHG 6PDOO
6DIRZHU .DUGLVHHG 673DLG
6R\DEHDQ3ODQWGHOLYHU\
6R\DEHDQ0DUNHWGHOLYHU\
+HVVLDQ&ORWK JP .RONDWD
$7ZLOOEDJV JP .RONDWD
%7ZLOOEDJV JP .RODNDWD
7' ([2WKHU6WDWHV .RODNDWD
&RWWRQ%HQJDOGHVKL8SFRXQWU\
&RWWRQ98SFRXQWU\
&RWWRQ'&+8SFRXQWU\
5XEEHU566.RFKL
$MZDLQ9LNDUDEDG
&DUGDPRPVPDOO %ROG
&RULDQGHU0HGLXP
&LQQDPRQ%URNHQ
&XPLQ6HHGV:KLWH &RPPRQ
*LQJHU%OHDFKHG
*LQJHU8QEOHDFKHG
*LQJHU'U\ 0HGLXP
3HSSHU%ODFN*DUEOHG
3HSSHU%ODFN8QJDUEOHG
7XUPHULF)LQJHU
%DMUD &DWWOHIHHG
-RZDU0HGLXP
0DL]H
0DL]H%HVW
5DJL
5LFH0HGLXP
:KHDW'DUD
:KHDW0HGLXP
6XJDU6
6XJDU6
*UDP'DO/RFDO
7XUPHGLXP
3HDVJUHHQ
0DVRRUVPDOO
*ROG6WDQGDUG 5VJP
*ROG3XULW\ 5VJP
6LOYHU 5VNJ

&ORVHDVRQ2FW

0XPEDL

([0DQJDORUH

0HDO 5VWRQ 
'HOKL

,QGRUH

1DPDNNDO

5DMNRW

6HHG 5VNJ
+DSXU

5DMNRW
1$
5DMNRW
1$
0XPEDL

,QGRUH

,QGRUH

)LEUH
5VSHUKPWV

5VSHUKEDJV

5VSHUKEDJV

5VSHUTQW

5VSHUTQW

5VSHUTQW

5VSHUTQW

3ODQWDWLRQ
5VSHUNJ

6SLFHV5VNJ
'HOKL

'HOKL

'HOKL

'HOKL

'HOKL

0XPEDL

0XPEDL

'HOKL

.RFKL

.RFKL

(URGH

*UDLQV5VNJ
%LNDQHU

,QGRUH

'DYDQDJHUH

,QGRUH

%DQJDORUH

+\GHUDEDG
'HOKL

,QGRUH

0XPEDL

&KHQQDL

3XOVHV5VNJ
'HOKL

,QGRUH

'HOKL

'HOKL

%XOOLRQ
0XPEDL

0XPEDL

0XPEDL

0DUNHW

&ORVHRQ6HS




&ORVHRQ2FW


17








17
1$









1$
1$




















































































1$


5VNJ  &DUGDPRPVPDOO %ROG LQ5VNJ &LQQDPRQ%URNHQLQ5VNJ LQGLFDWHVSULFHVDVRQ


2FWREHU
1RWH3ULFHVDUHWDNHQIURPWKHDXWKHQWLFDWHGVRXUFHV(YHU\FDUHLVWDNHQWRUHPRYHDQ\GLVFUHSDQF\LQGDWD
+RZHYHUZZZ&RPPRGLW\,QGLDFRPLVQRWUHVSRQVLEOHIRUDQ\GLYHUJHQFH
_&RPPRGLWLHV 'HULYDWLYHV

1RYHPEHU

' D WD   6 W D W L V W L F V

0DQGL$UULYDOV
&RPPRGLW\0DUNHW
*DGZDO
-HGFKHUOD
$OZDU
%KDUDWSXU
.KDLUWKDO
.RWD
-DLSXU JUDLQ 
-DRUD
,QGRUH
8MMDLQ
5DLFKXU
*DGDJ
.XUQRRO
*UDP-DLSXU
*UDP.RWD
%HQJDOJUDP%DQJDORUH
%HQJDOJUDPGDO%DQJDORUH
5HGJUDP:DUDQJDO
*UHHQJUDPGDO%DQJDORUH
*UHHQJUDP*XOEDUJD
7XU*XOEDUJD
7XU'DO%DQJDORUH
)DWHK1DJDU:KLWH
8GDLSXU
%DQJDORUH
'DYDQJHUH
,QGRUH
5DQLEHQQXU
%KDUDWSXU
$OZDU
*DGDJ
+DVVDQ
,QGRUH
9LGLVKD
'HZDV
8MMDLQ
'U\%DQJDORUH
*UHHQ&KLOO\,QGRUH
'U\:DUDQJDO7DOX
'U\.KDPPDP5HG
$MPHU
-DLSXU
%LNDQHU
'HOKL
.DQSXU
%DQJDORUH

1RYHPEHU

$UULYDOV 4XLQWDOV IURP


6HSWHPEHU
&DVWRU


0XVWDUG





6R\EHDQ



6XQRZHU



*UDP







7XU$UKDU


0DL]H






:KHDW








&KLOO\




3RWDWR



1$
1$


$UULYDOV 4XLQWDOV IURP


6HS















































&RPPRGLWLHV 'HULYDWLYHV_

'DW D   6W D W L V W L F V
&RPPRGLW\0DUNHW
-DLSXU
.RWD
%DQJDORUH
<HPPLJDQXU
.XUQRRO
&XGGDSDK
5DMNRWEROG
5DMNRWVPDOO
(URGH
1L]DPDEDG
6DQJOL
'XJJLUDOD)LQJHU
&XGGDSSDK)LQJHU

$UULYDOV 4XLQWDOV IURP


6HSWHPEHU
*XU

17
*URXQGVHHG






7XUPHULF






$UULYDOV 4XLQWDOV IURP


6HS














1RWH$UULYDOGDWDLVWDNHQIURPWKHDXWKHQWLFDWHGVRXUFHV(YHU\FDUHLVWDNHQWRUHPRYHDQ\GLVFUHSDQF\LQ
GDWD+RZHYHUZZZ&RPPRGLW\,QGLDFRPLVQRWUHVSRQVLEOHIRUDQ\GLYHUJHQFH

_&RPPRGLWLHV 'HULYDWLYHV

1RYHPEHU

N6W

84VQB

.R20-:YDF.NRSRV2Y.&0.JM
J.YBJ
Q6JR.R20-:YDMF.6VQFY..RJR&Y.YRMSQV."J6wNRSRS2Y.&0
QTBSFJ8 $Y.R;S&[S"D/BIV|VTFY.&DJRTSN4M.6M8]T.M"B68R
VJRMYRSN6ML6JNRSR"62Y.&0."VT.M.6BJN-B.S8N6$MYPR.YQN.6
.YPLM8PMJ8]

-:YDMF .64 N R NRSRS2Y.&0 .ML6I.SBS8 N8TFY .:VT0."L6
N6JK4Y62TV6.M4Y46."L6N6]:VT0N6"L6JNRSRS2Y.&0JVSN6.F6J
JKPF6RNDTJRM.."L6N6.SBS8T.M46."L6N6.SBSML6I"NM"NR
P8J86D.8]"B68RN/T YT .6.2 ."LSSM.6 J NSB .-:YDF .6ML6J$Y
NRSRS2Y.&0VYJV.JYN68 JK$Y.ML6IR.YQN.6.BIJSSVyM.NJ.
$YJRT[S4M8.SBS8]$M.ML6IR8%K2YBTJYN6VSN6N6YL"Y6N2J8]MD
4-&486IRNRSRS2Y.&0.VYBJ."D/YYRGFY.J8]

,QGRUH
.DQSXU
.DUQDO
.KDQQD
.RWD
%DUHLO\
6KDKMKDQQSXU
$KPHGDEDG
6LUVD
0RJD











7DEOH
    















































&N6w0PTYS8YN8.-:YDF.6ML6JB8.NRSRY"MS2TV6.M4.VSN6S.
.JMM.YM&1N28B]$Y0PTR-."6VYBJS88.N/TVXF8.6MTRB8..RJN6
4TT.R.PTNJ:V0T"L..NRSR4SBSKV8$YYTR.VTNJ:V0T8
"L.ML6J.SBS8 $YN.6Y;RM2RF8N/TYT4TT.R.PTNJ:V0T
"L..NRSRN6ML6J.SBSK&Y $YYTC0.6.VTNJ:V0T"L.6;BS8]
1.$YJ68YN/TYTRFMV6.Y4N6.6MTJK;R2S.TSvR[JKNJ
:V0T.NRSRCXJ.SBSKT.M$YYTR&YR8.TSvR[JKNJ:V0T
.2Y.&0N6ML6J.BS8]$M"YRMJ".FVPJVSN6VB.;FM8N2B]

N6Q6JRYQVSN6VB.RJ.&J6D3V.8FB.RLSRYMSMJR.6M.NSY.6J8T.M
-:YDF.6ML6J.SFMVTNRSRJK2Y.&0.VYBJ$M.TSF;RQ6YPJ868
.R20Y-226V0VY_

N6W

8 4  V Q B

8]MD4-0PTR-.-:YDF.6"B"MVTR8M.T-ML6J.SB-NRSRJK2Y.&0
.VYBJS.56YF86.6J8

7DEOH
3ODFH
$KPHGDEDG
,QGRUH
.DQSXU
.DUQDO
.KDQQD
.RWD
6KDKMKDQSXU
6LUVD
0RJD

$XJ6HS
&RQWUDFWRSHQRQ










2FW'HF
&RQWUDFWRSHQRQ










-DQ)HE
&RQWUDFWRSHQRQ











-:YDF.6.6MTJK;.2TV6.M4.TS"BYJJKYJRP6.B8.Y4RvR[
JKNRSRML6J.SBST.M"BT ":0P6JKMVP6.Y4 R $Y C0.6.VT
JK.64SBS]$YYQP3.6YKJ;6PJJP8%FP"BTFMV6R8.Y4.TSNRSR
.PF-vR[JKNJ:V0T.2Y.&0ML6J.64SBS]$YN6C0MvRYVSN6S
.TBQBYNJ[JJ..M.YM&1MN2Y.J8]$YN.6Y$M46R-:YDF.6FMV6
YT.64YRP6J..Y4.TSNJ:V0T.2Y.&04SF68T.M1."MVTFMV6
.Y4R$Y2Y.&0.P3.6NJ:V0T.64SBSF.B8..T.RJ.NJ[J8]
$Y.YLRJTPS88."PVSN6S.PF6Y.."TV"P-:YDF6Y.Q&1MN2B]

.YMQ"/JM868
$MN6VYBJSY.YMQ"/JM868Y.8 86SIRY6YRM2.T-B8F8NJ:V0T
.2Y.&0 N6ML6J.SBSV8.6MTRM2.T-FT%J.NJ:V0T.NRSR
ML6J.SBS].RJ.$M"YRMJ".DTJ-.86FSR.R."J6N6.YM.P2
R{R.RJ.C0&1MN2]

4TT8F6PF6RDM..RJN6NRSRJK2Y.&0."Y6M8
-:YDF.6DMR$462TV6.M4.T-4TT..RJN6YT.6NJ:V0T.
MSRJNY2Y.&0ML6J.SBST.MVYJVR4MR2S.RB-VNJJK"V..YRSR
"J6..6I."J668]MD4-0PTRS8PJYNNY4;%N2J8]

'DWH




_.R20Y-226V0VY

7DEOH
6SRW3ULFHRI&KDQD 6SRW3ULFHRI&KDQD
'HOKL
,QGRUH







3UHPLXPDQG'LVFRXQW
[HGE\H[FKDQJH




8 4  V Q B

N6W

FY.0PTYS8PJYRM"FJ8.-:YDF.6DMN6ML6J.-B-NRSRJK2Y.&0
.8F6PF6..RJR.%5.M8N2]$YYRS.46M2Y.&0"6NRSR.ML6IMJY
F84TTJKP.M6.VSN6S.$YYC0&1MN2V8$46.VSN6S.P25S4RT]

2Y.&0JKNRSR.ML6I.PF6N6NQV
MD$YN6J{Y8MVTNQV.VVDM.F688]

"-.FY.;64.6.&Y.-:YDFRP..TM.RLSRY8FB.6M.TS$D/.8 P.
.6PF6RFY..RJ.".TMJKF;R.BIM.6.TMN4M.64SBST.MNRSR
"62Y.&0.56R"BTY4R".C0&1MN2]$YN6C0MvRR-:YDFYPLF;R.
BIMM8P.M"6M8YVS"M.KF.[NY"VyM.-V"N6N6BJ3BYC0K]

"B6"B"MVTR8M.Y4R$YN.6YNRSR"62Y.&0..6I.RJRN6VJM8J
8JVSN6.NYYPLJR8R2TV64M..$V.TNM8PDJ]$YPJ.NRI0PTR4-
.6MTR2..RJR4;FY.J8F84YRP6.R8.TSN8TB8RNRSR4SBSKV8
N6FMV6.Y4.TS2Y.&0.ML6I.SBS8]


B8.Y4.2TV6.N/T".2N6"B68RMF62TJN-B.FS4J62TV6.6MTJK
;.R2S Y 8-8 $Y."TVP.R2S .VSN6S . $YY .5C0&1MN2]"MSR;S
2TV6.M4FY.MN6 P6TJK[8F8N6R$YNRSR"62Y.&0.DTJ.%Q2TV6M8
8Y.]

YGV
8T.$YN6MJML6IR"TB"TB-:YDF."NMRMSJ-8T.M"B6MD4-B-./YGV
N6B6.SFY.J[S4$Y-.P8J6N4SFY.J8]

-:YDF.NRSRS2Y.&0.ML6ISY4.YRNJ8MN6JS.FMVT.RJ.YPLJ
FY."TB"TB2TV6.M4SR2S..RJ."YJT.6.SFMD8-J..VT.Y
V[XFB8.8TQNNJM8]FY.-RY-:Y.6RMK"ST..RJ.ML6I$YN.6
Y.SFJ8]

YQ-:YDF . FY N64-FM VT NRSRJK2Y.&0 .BIMJK&Y.NJ.FM.6
"NMYQY4YS.4FMD8-JK$YN6N6J68YN64[JP6JMD8-]

B8.Y44TTR2."L6N6JS.SFJ8T.M$Y.VSN6.4TT..RJ."MNJS
M8.SFMD8-:S.S"NM"NR.VT-.;NJ.6MVTR28M.&JN4.x{ PT.$Y.
T-6SYJ6N6PYP2R2S."YJYT-B-"L6N6JS.FMD8-]

.R20Y-226V0VY_

Limited Price.
Unlimited Trading.
For the first time in India, Altos presents
FLAT FEE DISCOUNT TRADING with ZERO BROKERAGE.
Now, you can trade all you want on India's commodity
markets by just paying a fixed monthly charge of Rs. 499.
What's more, you can trade directly on our website.
In short, it's opportunity unlimited.

www.altostrade.com

Call Altos at 044 4391 6600, 2374 4580, 2374 4583 right away

You might also like