New Taipei: a Livable and Thriving City

New Taipei 2019 For SustainableDevelopmentGoals Voluntary LocalReview New Taipei City 2052.57 4,004,598

2052.57 4,004,598

1HZ7DLSHL $/LYDEOH 7KULYLQJ&LW\

1HZ7DLSHL&LW\ 9ROXQWDU\/RFDO5HYLHZIRU6'*V

6HSWHPEHU Index

Chapter 0 0.1 Words from the Mayor 2 Forword 0.2 Team of New Taipei City Government 3

0.3 Introduction to New Taipei City's VLR 4

Chapter 1 1.1 New Taipei City’s Way 8 Vision of New Taipei City 2030 : toward the Future of 2030 Livable City 1.2 SDGs for a Global city 10

1.2.1 Introduction to SDGs 11

1.2.2 The MDGs and SDGs 12

1.2.3 2030 Agenda for SD 13

1.2.4 The 17 SDGs 16

1.3 Roles and Relationship among 18 City and SDGs

Chapter 2 2.1 The Methodology of 22 The Methodology of New Taipei City VLR New Taipei City VLR 2.1.1 How to Localize the SDGs? 23

2.1.2 Cities' Future Trend and 26 New Taipei City Challenges

2.1.3 New Taipei City’s 30 VLR Strategy Blueprint

2.1.4 New Taipei City 32 VLR Mechanism and Process

2.2 New Taipei City and its Region 34 Chapter 0 0.1 Words from the Mayor 2 Chapter 3 3.1 SDG Indicators of 42 Forword Data and Indicators of New Taipei City VLR 0.2 Team of New Taipei City Government 3 New Taipei City SDGs 3.1.1 New Taipei City 44 0.3 Introduction to New Taipei City's VLR 4 VLR Review Priorities

Chapter 1 1.1 New Taipei City’s Way 8 3.1.2 New Taipei City VLR Review Criteria 49 Vision of New Taipei City 2030 : toward the Future of 2030 Livable City 3.2 New Taipei City and SDG 11 54 1.2 SDGs for a Global city 10 3.3 New Taipei City on 62 1.2.1 Introduction to SDGs 11 Global Trend of SDGs

1.2.2 The MDGs and SDGs 12 3.4 New Taipei City and Global Goals 74

1.2.3 2030 Agenda for SD 13 Chapter 4 4.1 New Taipei City Solutions on SDGs 84 New Taipei City Solutions on SDGs 1.2.4 The 17 SDGs 16 4.2 New Taipei City 86 Thematic Development 1.3 Roles and Relationship among 18 City and SDGs 4.3 New Taipei City Case Studies 90

Chapter 2 2.1 The Methodology of 22 Chapter 5 The Methodology of New Taipei City VLR New Taipei City’s International 112 New Taipei City VLR 2.1.1 How to Localize the SDGs? 23 Participation for SDGs

2.1.2 Cities' Future Trend and 26 Chapter 6 New Taipei City Challenges Way forward for New Taipei City’s 118 Sustainability Transition 2.1.3 New Taipei City’s 30 VLR Strategy Blueprint

2.1.4 New Taipei City 32 VLR Mechanism and Process

2.2 New Taipei City and its Region 34 $EEUHYLDWLRQ,QGH[

$JHQGD $JHQGD

6'$JHQGD 6XVWDLQDEOH'HYHORSPHQW$JHQGD

$)+& $OOLDQFHIRU+HDOWK\&LWLHV

&/& &HQWUHIRU/LYHDEOH&LWLHV

+/3) +LJKOHYHO3ROLWLFDO)RUXP

,&) ,QWHOOLJHQW&RPPXQLW\)RUXP

,$(*6'*V ,QWHUDJHQF\DQG([SHUW*URXSRQ6'*LQGLFDWRUV

,&/(, ,QWHUQDWLRQDO&RXQFLOIRU/RFDO(QYLURQPHQWDO,QLWLDWLYH

,'& ,QWHUQDWLRQDO'DWD&RUSRUDWLRQ

0'*V 0'*V0LOOHQQLXP'HYHORSPHQW*RDOV

1'&V 1DWLRQDOO\'HWHUPLQHG&RQWULEXWLRQV

2SHQ$3, 2SHQ$SSOLFDWLRQ3URJUDPPLQJ,QWHUIDFH

3RVW$JHQGD 3RVW'HYHORSPHQWDO$JHQGD

6' 6XVWDLQDEOH'HYHORSPHQW 6'*V 6XVWDLQDEOH'HYHORSPHQW*RDOV

6'61 6XVWDLQDEOH'HYHORSPHQW6ROXWLRQV1HWZRUN

8&/* 8QLWHG&LWLHVDQG/RFDO*RYHUQPHQWV

81+DELWDW 81+DELWDW

81(FRQRPLFDQG6RFLDO&RPPLVVLRQIRU$VLDDQG 81(6&$3 WKH3DFLƉF

9/5 9ROXQWDU\/RFDO5HYLHZ

973, 9LFWRULD7UDQVSRUW3ROLF\,QVWLWXWH

915 9ROXQWDU\1DWLRQDO5HYLHZ

:+2 :RUOG+HDOWK2UJDQL]DWLRQ

&KDSWHU )RUHZRUG

:RUGVIURPWKH0D\RU

7HDPRI1HZ7DLSHL&LW\ *RYHUQPHQW

,QWURGXFWLRQWR 1HZ7DLSHL&LW\ŇV9/5

&KDSWHU ӕ )RUHZRUG &KDSWHU :RUGVIURPWKH0D\RU

:LWK4XDOLW\/LIHDQG'HFHQW:RUNDVWKH UHVROXWLRQRI1HZ7DLSHL&LW\LQSURPRWLQJWKH6'*V 2EMHFWLYH1HZ7DLSHL&LW\DLPVWREHFRPHD/LYDEOH ZLWKWKHLQWHUQDWLRQDOFRPPXQLW\ &LW\IRU0DQNLQG 7KURXJKWKHFRPPRQODQJXDJHRIWKHSODQHWŃ6'*V %\WKHUHZLOOEHELOOLRQSRSXODWLRQOLYLQJLQFLWLHV Ń1HZ7DLSHL&LW\UDSLGO\ODLGRXWDEULGJHEHWZHHQWKH RQWKHSODQHW$WSUHVHQWWKHUHKDVEHHQKDOIRIWKH ORFDODQGWKHJOREDOFLWLHVVRWKDWWKH6'*VROXWLRQV JOREDOSRSXODWLRQOLYLQJLQFLWLHV1HZ7DLSHL&LW\KDV RI1HZ7DLSHL&LW\PD\LQFUHDVHWKHLUDGGHGYDOXHV EHFRPHWKHFLW\ZLWKWKHODUJHVWSRSXODWLRQ PLOOLRQ LQ GHYHORSWKH6'*ZRUNVLQWKHFLW\DQGIDFLOLWDWHWKH 7DLZDQVLQFH$SULODQGWKHQXPEHULVVWLOOULVLQJ SRVVLELOLWLHVRIJOREDOSDUWQHUVKLSIRUWKHYLVLRQRI SURVSHULW\DQGVXVWDLQDELOLW\ :LWKŉ/LYH%HWWHUDQG/LYH/RQJHUŊDVWKHYLVLRQIRU IXWXUHFLW\OLIH1HZ7DLSHL&LW\VHHNVWRDGGUHVVWKH $VPHPEHUVRIWKH1HZ7DLSHL&LW\ŇVFLWL]HQZHQHHG FULVLVIRUKXPDQLW\ŇVOLIHLQFOXGLQJH[WUHPLVPSRYHUW\ HYHU\FLWL]HQWRZRUNZLWKXVIRUDEHWWHU1HZ7DLSHL DFURVVJHQHUDWLRQVFOLPDWHFKDQJHDQGLQVXIILFLHQW &LW\VRDVWRUHDOL]HWKHLGHDOOLIHRIHDFKFLWL]HQEH PHGLFDOUHVRXUFHV7KH6XVWDLQDEOH'HYHORSPHQW*RDOV WKDWWKHSURDFWLYHFDUHIRUFLW\JRYHUQDQFHDQGLWV 6'*V KDVEHFRPHWKHFRPPRQODQJXDJHZRUOGZLGH PDQDJHPHQWSURFHVVHVWKHFDUHIRUORFDOFRPPXQLW\ŇV IRUWKH,GHDO/LIHLQWKHIXWXUH$VFRXQWULHVDUHWU\LQJ FXOWXUDOKLVWRULFDOIHDWXUHVWKHSURDFWLYHYRLFHDERXW WRHQGSRYHUW\VDIHJXDUGHDUWKHQVXUHSHDFHDQG RQHŇ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ƉUVWVWHSIRULQWHUGLVFLSOLQDU\ FLW\DUHDDQGFRXQWU\WRGHPRQVWUDWHWKHHƈRUWVDQG GLDORJXHRQŉ/LYDEOH&LW\ŊVRWKDWPRUHSHRSOHPD\ EHOLHYHLQWKH,GHDORI4XDOLW\/LIHDQG'HFHQW:RUN

+RX

1HZ7DLSHL&LW\ 9ROXQWDU\/RFDO5HYLHZIRU6'*V &KDSWHU 7HDPRI1HZ7DLSHL&LW\*RYHUQPHQW

&RPSUHKHQVLYH&RRSHUDWLRQRQWKH6'*V DOO1HYHUWKHOHVVLWFDQEHVHHQDVDQ6'*IUDPHZRUN DQG1HZ7DLSHL&LW\ŇVIXWXUHDFWLRQVDQGLWVILUVW 7KH6'*VKDVEHFRPHWKH&RPPRQ/DQJXDJHWKDWKHOSV VWHSWRGLDORJXHVZLWKWKHFLWL]HQVVRDVWRJXLGHWKH JOREDOFLWLHVWRLGHQWLI\FKDOOHQJHVDQGRSSRUWXQLWLHV IXWXUHFLW\JRYHUQDQFHDQGVHUYHDVWKHSULQFLSOHDQG $VWKHPRVWSRSXODWHGFLW\LQ7DLZDQ1HZ7DLSHL&LW\ GLUHFWLRQIRUGHYHORSPHQW ZLOOILUVWO\DLPIRUJOREDOSURVSHULW\DQGVXVWDLQDEOH GHYHORSPHQWGLVFORVLQJ1HZ7DLSHL&LW\ŇV,QGLFDWRUVDV 2YHUWKH\HDUVWKHSROLFLHVRI1HZ7DLSHL&LW\ ZHOODVVKDULQJFDVHVDVWKHRSSRUWXQLWLHVIRULQWHUQDWLRQDO KDYHEHHQDGRSWLQJWKHLGHDVRIWKH0D\RUDVWKH FRRSHUDWLRQDQGFRQQHFWLQJFLW\ZLWKLWVFLWL]HQU\ JXLGLQJSULQFLSOHVRIZKLFKWKHIRFXVHGDVSHFWVDUH FRLQFLGHQWDOO\DOLJQHGZLWKYDULRXV6'*V(ƈRUWVRIWKH 7KURXJKWKHLQYHQWRU\RIWKH6'*VDQGWKHSRVLWLYH SUHYLRXVDGPLQLVWUDWLRQDOVROHG1HZ7DLSHL&LW\WRZDUG QHJDWLYHUHOHYDQFH1HZ7DLSHL&LW\QRWRQO\KHOSV WKH6'*V

7KHSDWKWRVXVWDLQDELOLW\LVORQJDQGIXOORIREVWDFOHV $UHVSRQVLEOH1HZ7DLSHL&LW\*RYHUQPHQWZLOOQRWLJQRUH ,WLVXQOLNHO\WKDWWKLV9/5FDQVROYHWKHLVVXHVRIFLW\ VXVWDLQDEOHGHYHORSPHQWDQGWKHVRFLDOLVVXHVDWKDQG GHYHORSPHQWIRUWKHQH[WRUGHFDGHVRQFHDQGIRU

&KDSWHU ӕ )RUHZRUG &KDSWHU ,QWURGXFWLRQWR1HZ7DLSHL&LW\ŇV9/5

1HZ7DLSHL&LW\6WUDWHJLF*XLGHOLQHWREHFRPH :LWK6'WRROVDQG6'*V7RROV1HZ7DLSHL&LW\ DKDQGERRNIRUWKHUHYLHZRI1HZ7DLSHL&LW\ŇV /LQNVWRFLWLHVZRUOGZLGHWRIDFHDQGZRUNRQ FROODERUDWLRQZLWKFLWLHVZRUOGZLGHRQWKH6'*V JOREDOFKDOOHQJHVDQGRSSRUWXQLWLHV

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ŉH[SHUWVŊ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ŇVVROXWLRQVFDQIDFLOLWDWHWKHJOREDOFLWLHVŇHƈRUWV DLPHGWREHXVHGDVWRRONLWIRULQWHUQDWLRQDO IRUSURVSHULW\DQGVXVWDLQDELOLW\IXOƉOOLQJWKHFRPPRQ QHWZRUNVDQG$VLD&LW\6'*VWRHVWDEOLVK VXVWDLQDEOHYLVLRQVKDUHGDPRQJ$VLDFLWLHV 9/5PRGHODQGDFFHOHUDWHWKHSURFHVVRI6'* VROXWLRQVGHYHORSPHQWDPRQJFLWLHV

1HZ7DLSHL&LW\ 9ROXQWDU\/RFDO5HYLHZIRU6'*V &KDSWHU

:LWKLQWHUQDWLRQDOIRFXVHG6'*V1HZ7DLSHL&LW\UDLVHGNH\GDWDDQGVROXWLRQV

:LWK6'*VWRROVDQGWKHSROLF\IUDPHZRUNRIDOLYDEOHFLW\9/5UHYLHZHG6'* UHFRPPHQGHGE\81+DELWDWDQGIROORZLQJE\WKH6'*VIRFXVHGE\+/3)DQG 8&/*$OLJQLQJZLWKQDWLRQDOODWHVWLQGLFDWRUVDQGSURFHVV1HZ7DLSHL&LW\9/5 WUDQVODWHGFLW\VROXWLRQVLQWR6'*VIRUHDVLHUH[FKDQJHVDQGFRPPXQLFDWLRQV

:LWK/LYDEOH&LW\DVYLVLRQ1HZ7DLSHL&LW\WDNHVRQ IXWXUHFKDOOHQJHVVKDUHGE\DOOKXPDQLW\

7KURXJKWKHFRPPXQLFDWLRQLQWHUQDOO\DQGH[WHUQDOO\YLD1HZ7DLSHL&LW\ŇV9/5ZH VKDOOHQYLVLRQWKH,GHDO/LIHRITXDOLW\OLYLQJDQGGHFHQWZRUNVWRJHWKHUZLWKPRUH SHRSOH,QWKHFLW\Ň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

&KDSWHU 9LVLRQRI 1HZ7DLSHL&LW\ /LYDEOH&LW\

1HZ7DLSHL&LW\ŇV:D\ WRZDUGWKH)XWXUHRI

6'*VIRUD*OREDOFLW\

,QWURGXFWLRQWR6'*V 7KH0'*VDQG6'*V $JHQGDIRU6' 7KH6'*V

5ROHVDQG5HODWLRQVKLS DPRQJ&LW\DQG6'*V

&KDSWHU ӕ 9LVLRQRI1HZ7DLSHL&LW\/LYDEOH&LW\

1HZ7DLSHL&LW\ŇV:D\WRZDUGWKH)XWXUHRI

1HZ7DLSHL&LW\MRLQWVKDQGVZLWKJOREDOFLWLHVRQ6'*V &KDSWHU $VRIWRGD\WKHUHDUHPLOOLRQSHRSOHOLYLQJLQ1HZ7DLSHL&LW\DQGWKHQXPEHUNHHSV ULVLQJ:KHUHDVLQWKHIDFHRISRSXODWLRQJURZWKDQ\FLW\KDVWRGHDOZLWKFKDOOHQJHV OLNHUDSLGJURZWKRIHQHUJ\FRQVXPSWLRQZRUVHQLQJSROOXWLRQDQGZHDOWKLQHTXDOLW\ &LWLHVDFFRXQWRQO\RIODQGVRQWKHSODQHW

1HZ7DLSHL&LW\EHFDPHWKHODUJHVWFLW\LQ7DLZDQ OHDGLQJVXVWDLQDEOHGHYHORSPHQWWUDQVLWLRQ

1HZ7DLSHL&LW\KDVULVHQDVWKHODUJHVWFLW\LQ7DLZDQLQ9DULRXVVRIWZDUH KDUGZDUHGHYHORSPHQWDQGSROLFLHVFRQFHUQLQJWKHOLYHVRISHRSOHLQWKHFLW\DUHLQ SODFHDQGLQSURJUHVV3HUKDSVWKHUHDUHPDQ\LQGLƈHUHQWWRDOOWKHVH%HLWZHDOWKJDS RUHQYLURQPHQWDOSROOXWLRQERWKVHHPLUUHOHYDQWZLWKXV1RQHWKHOHVVKRZHYHUGLVWDQW ZHDUHZLWKWKHVHLVVXHV1HZ7DLSHL&LW\DQG7DLZDQDOLNHZLOOEHLPSDFWHGZLWKRXU OLYHVDƈHFWHGRZLQJWRWKHHVFDODWLRQRIJOREDOSKHQRPHQD(YHU\WKLQJLVFRQQHFWHG ŃWKHZRUVHQLQJRIZHDOWKLQHTXDOLW\FRXOGSRWHQWLDOOHDGWRGHWHULRUDWLRQRIVHFXULW\ DQGHQYLURQPHQW:LWKZRUVHQLQJHQYLURQPHQWWKHHQYLURQPHQWDOFDUU\LQJFDSDFLW\ GHFUHDVHVZLWKWKHULVHIUHTXHQF\RIH[WUHPHZHDWKHUDQGLQWHQVLW\DQGLPSDFWVWRIRRG DQGHFRQRPLFV\VWHP,QDQXWVKHOOFOLPDWHFKDQJHPLJKWDSSHDUWREHDQDEVWUDFWDQG GLVWDQWFULVLV\HWLWPD\WKUHDWHQRXUVDIHW\HYHQWXDOO\

1HZ7DLSHL&LW\XSKROGVWKHYLVLRQ ŉ4XDOLW\0XQLFLSDOLW\*URXQGHGRQ6XVWDLQDEOH'HYHORSPHQW7KLQNLQJŊ

(PSOR\LQJŉ4XDOLW\0XQLFLSDOLW\ŊDVLWVYLVLRQ1HZ7DLSHL&LW\ODLGRXWWKHEOXHSULQWIRU LQWHUQDWLRQDOFRPPXQLFDWLRQRQDGPLQLVWUDWLRQZLWKWKH6'*V

1HZ7DLSHL&LW\ 9ROXQWDU\/RFDO5HYLHZIRU6'*V

7KURXJKWKHVWUDWHJLFLPSOHPHQWDWLRQIUDPHZRUN1HZ7DLSHL&LW\XSGDWHVWKH PLGDQGORQJWHUPDGPLQLVWUDWLRQSODQVDQGJRDOVIRUWKHFLW\RQDUHJXODU EDVLVVRWKDWGLƈHUHQWVWDNHKROGHUVFDQKDYHDFOHDUHUSLFWXUHRI6'*VDQGWKHLU &KDSWHU FRQWULEXWLRQZLWKWKHUHVSHFWLYHUROHVDQGV\VWHPV

%\VHWWLQJXSPHDVXUDEOHDQGHYHQTXDQWLƉDEOHLQGLFDWRUVWKHORFDOFRPPXQLWLHVLQ 1HZ7DLSHL&LW\VKDOOIDFLOLWDWHPRUHPXOWLIDFHWHGFLYLFHQJDJHPHQWVDQGGLDORJXHV YLDGHFHQWUDOL]HGDSSURDFKHV

7KURXJKWKHLQWHJUDWLRQRI1HZ7DLSHL&LW\ŇVFLUFXODUVWUXFWXUHWUDFLQJGDWDDQG LQIRUPDWLRQFDQEHPRUHFRQYHQLHQWLQWKHORQJUXQZKLOHHQVXULQJWKHDFFHVVLELOLW\ FKRNHSRLQWVRSSRUWXQLWLHVDQGFKDOOHQJHVRIWKHSROLF\JRDOV

,QDGGLWLRQWRFRQIURQWLQJDOOVRUWVRIFKDOOHQJHV1HZ7DLSHL&LW\HQJDJHVLWV DGPLQLVWUDWLRQZLWKWKHLGHDRIŉ6XVWDLQDEOH'HYHORSPHQW7KLQNLQJDQG/HDYLQJ1R 2QH%HKLQGŊ7KH&LW\*RYHUQPHQWVKDOOFRPSOHPHQWWKHFLW\ŇVGDWDDQGUHIHUHQFHV WKURXJKFROODERUDWLRQEULGJLQJWKHSXEOLFDQGSULYDWHVHFWRUVIRUDVXVWDLQDEOH IXWXUHRIIRU1HZ7DLSHL&LW\

&KDSWHU ӕ 9LVLRQRI1HZ7DLSHL&LW\/LYDEOH&LW\

6'*VIRUD*OREDO&LW\

*OREDOFLWLHVDUHWKHNH\IRU6'*VFRQWULEXWLRQLQWKHQHDUIXWXUH &KDSWHU &RQVLGHULQJWKDWWKH6'*VZHUHRULJLQDWHGIURPWKH81DQGWKDWWKHUHLVRIWHQWLPHVDKXJH JDSEHWZHHQWKH81IUDPHZRUNDQGORFDOFRQWH[WLWLVHYHQDJUHDWHUFKDOOHQJHIRURQH WRGHYHORSPHFKDQLVPVEDVHGRQWKHYLVLRQ+HQFHQDWLRQDODQGVXEQDWLRQDOJRYHUQPHQWV KDYHEHHQSUHSDULQJVWUHQJWKHQLQJDQGSURYLGLQJVXSSRUWVWRFLWLHVDQGDUHDVWRDWWDLQWKH ORFDOL]DWLRQRIWKH6'*V7KH6'*VORFDOL]DWLRQLPSOLHVWKHŉSURFHVVRIWDNLQJLQWRDFFRXQW VXEQDWLRQDOFRQWH[WVLQWKHDFKLHYHPHQWRIWKH$JHQGDIURPWKHVHWWLQJRIJRDOV DQGWDUJHWVWRGHWHUPLQLQJWKHPHDQVRILPSOHPHQWDWLRQDQGXVLQJLQGLFDWRUVWRPHDVXUH DQGPRQLWRUSURJUHVVZKLOHSXWWLQJWKHSULRULWLHVRIWHUULWRU\DQGWKHSHRSOHDVZHOODVWKH QHHGVDQGUHVRXUFHVDWWKHFRUHRIVXVWDLQDEOHGHYHORSPHQWŊ7KH81IXUWKHUHPSKDVL]HG WKDWZHVKRXOGFRQWLQXHFRPPXQLFDWHRQORFDOQDWLRQDODQGJOREDOOHYHOV2QWRSRIWKDWZH VKRXOGQRWLI\ŉ*OREDO$JHQGDŊLQWKHSURFHVVRIORFDOL]DWLRQLPSOHPHQWDWLRQIRUFRQVWUXFWLQJ DEHWWHUJOREDOSROLF\IUDPHZRUN

1HZ7DLSHL&LW\ 9ROXQWDU\/RFDO5HYLHZIRU6'*V

,QWURGXFWLRQWR6'*V

Ŏ 2ULJLQVRI6XVWDLQDEOH'HYHORSPHQW*RDOV &KDSWHU

$VDVXSUDQDWLRQDORUJDQL]DWLRQWKDWNHHSVWKHSHDFHDQGRUGHUDURXQGWKHZRUOGWKH 8QLWHG1DWLRQV 81 KDVEHHQSOD\LQJDYLWDOUROHLQOHDGLQJDIIDLUVDFURVVGRPDLQV JOREDOO\6LQFHLWVHVWDEOLVKPHQWWKH81KDVGHGLFDWHGLWVHOIWRPDWWHUVFRQFHUQLQJŉ3HDFH DQG6HFXULW\Ŋŉ'HYHORSPHQWŊŉ+XPDQ5LJKWVŊDQGŉ,QWHUQDWLRQDO/DZVŊ,QWKHƉHOGRI 'HYHORSPHQWWKH81ŇVPLVVLRQLVWRUHGXFHSRYHUW\SURPRWHSURVSHULW\DQGVDIHJXDUG (DUWK7KHSULRULWL]HGDFWLRQVDWSUHVHQWLQFOXGHWKH0LOOHQQLXP'HYHORSPHQW*RDOV 0'*V WKHGHYHORSPHQWDJHQGDEH\RQGDVZHOODV6XVWDLQDEOH'HYHORSPHQW

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ƋFLDOO\ DGRSWHGE\WKH81*HQHUDO$VVHPEO\RQ6HSWHPEHUVLJQDOLQJWKHGDZQRID QHZVXVWDLQDEOHGHYHORSPHQWDJH

7KH6XVWDLQDEOH'HYHORSPHQWLVWKHVROXWLRQWRWKHGHYHORSPHQWLVVXHVHYHU\PRGHUQ VWDWHIDFHVDQGWRWKHHYHUFRPSOLFDWHGJOREDOFKDOOHQJHVWRHDFKFRXQWU\+HQFHWKLV 9/5DLPVWRIDFLOLWDWHWKHNQRZOHGJHRIWKH1HZ7DLSHL&LW\ŇVFLWL]HQU\RQWKHFRQWHQW RIVXFKJOREDODJHQGDZLWKVLJQLILFDQFHLQWURGXFLQJWKH6XVWDLQDEOH'HYHORSPHQW *RDOVDQGSURELQJLQWRWKHLVVXHVSHUWLQHQWWR1HZ7DLSHL&LW\:LWKWKLVUHSRUWDVWKH SRLQWRIGHSDUWXUHZHDWWHPSWWRUHFUXLWPRUHLQGLYLGXDOVIRUUHVHDUFKDQDO\VLVDQG XQGHUVWDQGLQJRIWKHNH\VWRWKHGHYHORSPHQWDJHQGDIRUWKHZRUOGLQWKH\HDUVWR FRPHZRUNLQJWRZDUGWRWKHLPSURYHPHQWRIWKHZHOOEHLQJIRUWKHZRUOG

&KDSWHU ӕ 9LVLRQRI1HZ7DLSHL&LW\/LYDEOH&LW\

7KH0'*V 6'*V &KDSWHU 7KH0'*VDGRSWHGLQIRFXVHGRQWKHGHYHORSLQJFRXQWULHVWUHDWLQJWKH GHYHORSPHQWRIVRFLDODVSHFWDQGWKHVXVWDLQDELOLW\RIHQYLURQPHQWDODVSHFWDV SDUDOOHOSURFHVVHV1RQHWKHOHVVWKHWZRZHUHIRXQGLQVHSDUDEOHDVLWWXUQHGRXW7KH ŉ$JHQGDIRU6XVWDLQDEOH'HYHORSPHQWŊDGRSWHGE\WKH81*HQHUDO$VVHPEO\LQ DSSOLHVWRDOOVWDWHVFRYHUVDUDQJHRI6XVWDLQDEOH'HYHORSPHQW*RDOVDQG HPSOR\VSHUVSHFWLYHVRIGLYHUVLW\LQFOXVLRQDQGEDODQFLQJRIDVSHFWV)ROORZLQJWKH XQƉQLVKHGPLVVLRQVRIWKH0'*VWKH6'*VVKDOOQRWVHSDUDWHVRFLDOGHYHORSPHQWIURP HQYLURQPHQWDOVXVWDLQDELOLW\QRUGRHVLWDOORZDQ\RQHRULVVXHOHIWEHKLQG

9DULRXVLQWHUQDWLRQDORUJDQL]DWLRQVDQGPHGLDSURSRVHGGLIIHUHQWFRPSDULVRQVDQG FRQWUDVWVEHWZHHQWKH0'*VDQGWKH6'*V)RULQVWDQFHLQ+RZZLOOWKH6'*VGLƈHU IURPWKH0'*V"DQRQOLQHHVVD\E\2[IDPLWSRLQWHGRXWWKDWWKHQHZ6'*VDUH HTXLSSHGZLWKDVHWRILQƊXHQFLQJDSSURDFKHVDQGWKDWWKHUHDUHIRXUPHDQVRIWKH 6'*VWRLQƊXHQFHLH'HYHORSLQJFRXQWU\EXGJHWVDQGSROLFLHV:LGHUVRFLDOQRUPV DERXWULJKWVDQGWKHGXWLHVRIJRYHUQPHQWVDQGRWKHUV$LGYROXPHVDQGSULRULWLHVZKLFK ZHUHPDLQO\HIIHFWLYHDVDQDLGOREE\LQJWRRO DQG'HYHORSHGFRXQWU\EXGJHWVDQG SROLFLHV7KH+XQJHU3URMHFWDOVRVKDUHGLWVXQGHUVWDQGLQJLQ0'*VWR6'*V7RS 'LƈHUHQFHVDQG7KH*XDUGLDQLQLWVUHDVRQVWKH6'*VZLOOEHEHWWHUWKDQWKH0'*V %DVHGRQDOOWKHFRPPHQWDULHVPDGHDFURVVƉHOGVDQGWKHZRUOGZHFRPSLOHGDŉ&RPSDULVRQ &KDUWŊDVIROORZV

0'*V 6'*V

%DODQFLQJWKHVRFLDO $VSHFW 0DLQO\WKHVRFLDODVSHFW GHYHORSPHQW VXVWDLQDEOH HQYLURQPHQW

*RDOV7DUJHWVDQG *RDOV7DUJHWV &RQWHQW ,QGLFDWRUV LQGLFDWRUV

$SSOLHGWR 'HYHORSLQJFRXQWULHV $OOFRXQWULHV

0LQGVHW 7RSGRZQ %RWWRPXS

RSHQZRUNLQJJURXSVFLYLF ([SHUWVDWWKH81 VRFLHW\RUJDQL]DWLRQVWRSLFDO 'UDIWLQJE\ +HDGTXDUWHUV DQGQDWLRQDOVHPLQDUVHWF DFURVVGLVFLSOLQHV

1HZ7DLSHL&LW\ 9ROXQWDU\/RFDO5HYLHZIRU6'*V

$JHQGDIRU6XVWDLQDEOH'HYHORSPHQW &KDSWHU )RUWKH6'*VWKDWFDPHLQWRIRUFHLQWRPDUFKRQWKHSDWKWRWKH$JHQGD IRU6XVWDLQDEOH'HYHORSPHQWLQUHJDUGWRWKHYLVLRQDQGSULQFLSOHVWKHUHZLOOEHFKDQJHV LQWHUPVRIVWUXFWXUHDQGVFDOHIRUWKHQH[W\HDUVWKH$JHQGDDVWKHORQJWHUP YLVLRQDQGWKH6'*VIRUWKHRXWSXWDQGIUDPHZRUN

7KH$JHQGDLVDQDFWLRQSODQPDGHIRUWKHSHRSOHWKHSODQHWDQGSURVSHULW\ VWULYLQJIRUWKHSHDFHDQGOLEHUW\IRUWKHZRUOG7RRXUNQRZOHGJHHQGSRYHUW\LQ DOOLWVIRUPVHYHU\ZKHUHLVWKHJUHDWHVWFKDOOHQJHWRWKHZRUOGZKLOHEHLQJHVVHQWLDO WRVXVWDLQDEOHGHYHORSPHQW$OOVWDWHVDQGVWDNHKROGHUVKDYHWRMRLQWIRUFHVLQWKH LPSOHPHQWDWLRQRIWKLVDJHQGD7KHSXUSRVHRIWKH81VWLSXODWLQJWKH*RDOLVWR GHPRQVWUDWHLWVGHWHUPLQDWLRQLQJHWWLQJWKHKXPDQLW\ULGRISRYHUW\DQGGHSULYDWLRQVR WKDW(DUWKPD\EHFXUHGDQGSURWHFWHG

&KDSWHU ӕ 9LVLRQRI1HZ7DLSHL&LW\/LYDEOH&LW\

Ŏ 7KH)LYH3ULQFLSOHVRIWKH6'*V &KDSWHU 7KH$JHQGDIRU6XVWDLQDEOH'HYHORSPHQWFRPHVZLWKWKUHHDVSHFWV6RFLHW\ (FRQRP\DQG(QYLURQPHQWZKLFKZHUHXSJUDGHGWR3ULQFLSOHV3HRSOH3ODQHW 3URVSHULW\3HDFHDQG3DUWQHUVKLS7KH3ULQFLSOHVVWUHVVRQWKHPXOWLSOHUHODWLRQVKLSV DPRQJWKH6'*VDLPLQJWRHQGSRYHUW\PHHWWKHVRFLDOQHHGVVXFKDVHFRQRPLF JURZWKHGXFDWLRQKHDOWKVRFLDOSURWHFWLRQDQGHPSOR\PHQWDVZHOODVDQVZHUFOLPDWH DFWLRQVDQGHQYLURQPHQWDOSURWHFWLRQVRDVWRDFKLHYHWKHQH[WVWHSIRUDWLJKWHU UHODWLRQVKLSEHWZHHQLVVXHVRIVRFLHW\DQGHQYLURQPHQW

1HZ7DLSHL&LW\ 9ROXQWDU\/RFDO5HYLHZIRU6'*V

Ŏ 7KH6L[*XLGHOLQHVRI6'*V &KDSWHU 7RDFKLHYHWKH6'*VZHKDYHWRUHFRJQL]HWKHWLJKWUHODWLRQVKLSDPRQJWKH 6'*V7KHUHIRUHRQWKHLQWHJUDWLRQRIWKLQNLQJWUDQVGLVFLSOLQDU\FRRSHUDWLRQDV ZHOODVWUDQVERUGHUFRPPXQLFDWLRQDQGFROODERUDWLRQWKH8QLWHG1DWLRQVFDPHXS ZLWK*XLGHOLQHVWRFRPSUHKHQVLYHO\UHƊHFWWKHVWLSXODWLRQWKHLPSOHPHQWDWLRQDQG IUDPHZRUNRIWKH6'*V

1DWLRQDO2ZQHUVKLS 3DUWLFLSDWRU\$SSURDFK 8QLYHUVDOLW\ /HDYLQJQRRQHEHKLQG +XPDQULJKWVEDVHG ,QWHJUDWHGDSSURDFK

&KDSWHU ӕ 9LVLRQRI1HZ7DLSHL&LW\/LYDEOH&LW\

7KH6'*V &KDSWHU 2Q-DQXDU\WKH$JHQGDIRU6XVWDLQDEOH'HYHORSPHQWRIILFLDOO\ LQDXJXUDWHGWKURXJKRXWWKHZRUOG,WH[SHFWHGWKDWWKHVWDWHVZRUOGZLGHZRXOGLQWHJUDWH WKHGLPHQVLRQVRIHFRQRP\VRFLHW\DQGHQYLURQPHQWLQWKHQH[W\HDUVWRVROYHWKH SUHVVLQJLVVXHVDURXQGWKHZRUOG,QWKLVVHFWLRQWKH6\QWKHVLV5HSRUWVFRYHULQJWKH 6XVWDLQDEOH'HYHORSPHQW*RDOVLVVXHGE\WKH+LJKOHYHO3ROLWLFDO)RUXP +/3) LQ DQGDUHVXPPDUL]HG

7KH6'*VDUHSURSRVHGEDVHGRQWKHVXFFHVVRIWKH0'*VFDUU\LQJRQWKHLU PLVVLRQVZLWKWKHRULJLQDOGHƉQLWLRQRI6XVWDLQDEOH'HYHORSPHQW 6' Ńŉ6XVWDLQDEOH GHYHORSPHQWLVGHYHORSPHQWWKDWPHHWVWKHQHHGVRIWKHSUHVHQWZLWKRXWFRPSURPLVLQJ WKHDELOLW\RIIXWXUHJHQHUDWLRQVWRPHHWWKHLURZQQHHGVŊ

7KHQHZO\SURSRVHG*RDOVFDOOIRUSURDFWLYHDFWLRQVE\DOOVWDWHVWKHGHYHORSLQJWKH GHYHORSHGDQGPLGGOHLQFRPHFRXQWULHVDOLNHVRDVWRIRVWHUSURVSHULW\DQGVDIHJXDUG WKHSODQHW

1HZ7DLSHL&LW\ 9ROXQWDU\/RFDO5HYLHZIRU6'*V &KDSWHU 6'* (QGSRYHUW\LQDOOLWVIRUPVHYHU\ZKHUH 6'* 5HGXFHLQHTXDOLW\ZLWKLQDQGDPRQJFRXQWULHV

6'* (QGKXQJHUDFKLHYHIRRGVHFXULW\DQGLPSURYHG 6'* 0DNHFLWLHVDQGKXPDQVHWWOHPHQWVLQFOXVLYH QXWULWLRQDQGSURPRWHVXVWDLQDEOHDJULFXOWXUH VDIHUHVLOLHQWDQGVXVWDLQDEOH

6'* (QVXUHKHDOWK\OLYHVDQGSURPRWHZHOOEHLQJIRU 6'* (QVXUHVXVWDLQDEOHFRQVXPSWLRQDQGSURGXFWLRQ DOODWDOODJHV SDWWHUQV

6'* (QVXUHLQFOXVLYHDQGHTXLWDEOHTXDOLW\HGXFDWLRQ 6'* 7DNHXUJHQWDFWLRQWRFRPEDWFOLPDWHFKDQJH DQGSURPRWHOLIHORQJOHDUQLQJRSSRUWXQLWLHVIRUDOO DQGLWVLPSDFWV

6'* $FKLHYHJHQGHUHTXDOLW\DQGHPSRZHUDOO 6'* &RQVHUYHDQGVXVWDLQDEO\XVHWKHRFHDQVVHDVDQG ZRPHQDQGJLUOV PDULQHUHVRXUFHVIRUVXVWDLQDEOHGHYHORSPHQW

6'* (QVXUHDYDLODELOLW\DQGVXVWDLQDEOHPDQDJHPHQW 6'* 3URWHFWUHVWRUHDQGSURPRWHVXVWDLQDEOHXVH RIZDWHUDQGVDQLWDWLRQIRUDOO RIWHUUHVWULDOHFRV\VWHPVVXVWDLQDEO\PDQDJH IRUHVWVFRPEDWGHVHUWLILFDWLRQDQGKDOWDQG 6'* (QVXUHDFFHVVWRDƈRUGDEOHUHOLDEOHVXVWDLQDEOH UHYHUVHODQGGHJUDGDWLRQDQGKDOWELRGLYHUVLW\ORVV DQGPRGHUQHQHUJ\IRUDOO 6'* 3URPRWHSHDFHIXODQGLQFOXVLYHVRFLHWLHVIRU 6'* 3URPRWHVXVWDLQHGLQFOXVLYHDQGVXVWDLQDEOH VXVWDLQDEOHGHYHORSPHQWSURYLGHDFFHVVWR HFRQRPLFJURZWKIXOODQGSURGXFWLYHHPSOR\PHQW MXVWLFHIRUDOODQGEXLOGHƈHFWLYHDFFRXQWDEOHDQG DQGGHFHQWZRUNIRUDOO LQFOXVLYHLQVWLWXWLRQVDWDOOOHYHOV

6'* %XLOGUHVLOLHQWLQIUDVWUXFWXUHSURPRWHLQFOXVLYH 6'* 6WUHQJWKHQWKHPHDQVRILPSOHPHQWDWLRQDQG DQGVXVWDLQDEOHLQGXVWULDOL]DWLRQDQGIRVWHU UHYLWDOL]HWKHJOREDOSDUWQHUVKLSIRUVXVWDLQDEOH LQQRYDWLRQ GHYHORSPHQW

1RWHWKH8QLWHG1DWLRQVƉQDOL]HG6'*VDQGWKH7DUJHWVLQ8QGHUHDFK6'* WKHUHDUHRQHWRƉYH7DUJHWV$VIRUWKHUHFRPPHQGHGPHWKRGVDQGGLUHFWLRQVIRU LPSURYHPHQWWKH\DUHQRWHGE\ŉDEFŊXQGHUWKH7DUJHWVIRUWKH6'*V

&KDSWHU ӕ 9LVLRQRI1HZ7DLSHL&LW\/LYDEOH&LW\

5ROHVDQG5HODWLRQVKLSDPRQJ&LW\DQG6'*V &KDSWHU Ŏ 7KHLPSRUWDQFHRIWKHUROHRIFLW\LQVXVWDLQDEOH GHYHORSPHQWLQFUHDVHGIRUQHDUO\GHFDGHV LQWKHSDVW

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ƋFXOWWRUHDOL]HWKHPLVVLRQ FLW\UHODWHGZRUNLQJJURXSVIRU6'*VVWLSXODWLRQLQ ODLGRXWLQWKH$JHQGD,QSUDFWLFHWKHORQJ DOVREURXJKWXSWKDWFLW\VKRXOGEHLQFOXGHGDV WHUPJRDOVRIWKH6'*VFDQEHDFKLHYHGRQO\WKURXJK WKHEDVLVIRULPSOHPHQWLQJDOO6'*V,QSDUDJUDSK UHDFKLQJFRQVHQVXVERWWRPGRZQYLDORFDODQGUHJLRQDO RI7UDQVIRUPLQJRXUZRUOGWKH$JHQGDIRU LQLWLDWLYHVVRDVWRFRQWULEXWHWRJOREDOVXVWDLQDELOLW\ 6XVWDLQDEOH'HYHORSPHQWLWUHDGVŉ:HDFNQRZOHGJH 7KLVLVDXQLYHUVDOFDOOIRUDFWLRQWRHQGSRYHUW\SURWHFW DOVRWKHHVVHQWLDOUROHRIQDWLRQDOSDUOLDPHQWVWKURXJK WKHSODQHWDQGHQVXUHWKDWDOOSHRSOHHQMR\SHDFH WKHLUHQDFWPHQWRIOHJLVODWLRQDQGDGRSWLRQRI DQGSURVSHULW\$SDUWIURPSURSRVLQJWKHVHXQLYHUVDO EXGJHWVDQGWKHLUUROHLQHQVXULQJDFFRXQWDELOLW\IRU DQGUHYROXWLRQDU\*RDOVDQG,QGLFDWRUVLWSURPLVHG WKHHIIHFWLYHLPSOHPHQWDWLRQRIRXUFRPPLWPHQWV FHDVHOHVVHƈRUWVLQWKHGHOLYHU\DVZHOO

1HZ7DLSHL&LW\ 9ROXQWDU\/RFDO5HYLHZIRU6'*V &KDSWHU Ŏ 1HZ7DLSHL&LW\WREHFRPHDSURDFWLYHUROHDV ORFDODXWKRULW\WRFRQWULEXWHWRJOREDOFLWLHV

7KH6XVWDLQDEOH'HYHORSPHQW*RDOVEHVWRZ1HZ7DLSHL DFURVVERUGHUVDQGGLVFLSOLQHVZHPD\KDYHDEDODQFHG &LW\QHZRSSRUWXQLWLHV1RZWKDW SURJUHVVWKDWLVPHDVXUDEOHUHYLHZDEOHDQGPRQLWRUDEOH LQWKHSURFHVVRIVXVWDLQDEOHGHYHORSPHQWHOHYDWLQJ &LW\PXVWUHVROYHWKHJDSEHWZHHQORFDODQG FRPPXQLFDWLRQHƋFLHQF\IRUVWDNHKROGHUVRIFLWLHV JOREDOFKDOOHQJH :LWKŉFLWL]HQU\ŊDVSULRULW\1HZ7DLSHL&LW\XSKROGV &LW\FDQPRELOL]HNH\SOD\HUVWRZDUGRSSRUWXQLWLHV WUDQVSDUHQWFLW\JRYHUQDQFHDVZHOODVLQWURGXFHV DQGFKDOOHQJHVWRHOHYDWHFLYLFSDUWLFLSDWLRQ PHFKDQLVPVIRUFLWL]HQVŇSDUWLFLSDWLRQLQUHYLHZLQJ DGPLQLVWUDWLYHSURJUHVVDQGKHOSLQJZLWKLWVDGMXVWPHQW &LW\FDQKHOSDQGFRQWULEXWHWR915DQGWUDFNFLWLHV VRDVWRFRQWULEXWHWRWKHORFDOL]HG6'*VGHYHORSPHQW SURJUHVVRIVXVWDLQDEOHGHYHORSPHQW 7KHSROLFLHVDQGLQWHUQDWLRQDOIUDPHZRUNRI1HZ7DLSHL &LW\VKDOOFRRUGLQDWHZLWKHDFKRWKHUYLDWKLV9ROXQWDU\ 1HZ7DLSHL&LW\WDNHVSULGHLQEHLQJDSLRQHHURIVXVWDLQDEOH /RFDO5HYLHZ 9/5 ZKLOH1HZ7DLSHL&LW\SOD\VDYLWDO FLW\GHYHORSPHQW$VVXFKZKHQWKH6'*VSURYLGHGD IRUFHIRUŉORFDOL]DWLRQLQ7DLZDQDQGLQWKH$VLDQUHJLRQ SODWIRUPIRUFLWLHVWRIXUWKHUSURPRWHGHYHORSPHQW1HZ LQKRSHVRIJOREDOFLWLHVWRZRUNZLWK1HZ7DLSHL&LW\RQ 7DLSHL&LW\SURDFWLYHO\HQJDJHGDVRQHRIWKHFLWLHV WKHYLVLRQRI WKDWSDUWRRNLQVXVWDLQDEOHFLW\GHYHORSPHQWRIIHULQJ UHVRXUFHVDQGH[SHULHQFHVSHUWDLQLQJWROHDGHUVKLSDQG DFWLRQEOXHSULQWV:LWKWKHMRLQWHIIRUWVRIFLW\OHDGHUV

&KDSWHU 7KH0HWKRGRORJ\RI 1HZ7DLSHL&LW\9/5

7KH0HWKRGRORJ\RI 1HZ7DLSHL&LW\9/5

+RZWR/RFDOL]HWKH6'*V" &LWLHV)XWXUH7UHQG DQG1HZ7DLSHL&KDOOHQJHV 1HZ7DLSHL&LW\ŇV9/5 6WUDWHJ\%OXHSULQW 1HZ7DLSHL&LW\9/5 0HFKDQLVPDQG3URFHVV

1HZ7DLSHL&LW\DQGLWV5HJLRQ

&KDSWHU ӕ 7KH0HWKRGRORJ\RI1HZ7DLSHL&LW\9/5

7KH0HWKRGRORJ\RI1HZ7DLSHL&LW\9/5

9/5WRROVIRUJOREDOFLWLHVGHWHUPLQLQJWKHDQJOHIRU1HZ7DLSHL&LW\EDVHGRQ WKHJOREDOWUHQG

(YHUVLQFHWKHSURPXOJDWLRQRI$JHQGDE\WKH8QLWHG1DWLRQVLQ6HSWHPEHUWKDW LQFOXGHG6XVWDLQDEOH'HYHORSPHQW*RDOV 6'*V 7DUJHWVDQG,QGLFDWRUVDV WKHPHDQRILPSOHPHQWDWLRQDQGJOREDOSDUWQHUVKLSDVZHOODVWKHPRVWHVVHQWLDODXGLWDQG IROORZXSPHFKDQLVPVWKHVWDWHVDJUHHGRQWKHJOREDOGHYHORSPHQWDJHQGDSURPLVLQJWKH

&KDSWHU UHOHDVHRIUHVSHFWLYH9ROXQWDU\1DWLRQDO5HYLHZV 915 WRLQYHQWRU\WKHFXUUHQWVWDWXVDQG SUDFWLFHVVRDVWRDFKLHYHWKH6'*VE\VWHSE\VWHS

:LWKWKHLQWHUQDWLRQDOIUDPHZRUNJOREDOFLWLHVXVHWKH6'*VDVDWRRODQGUHIHUHQFH IRUWKHIXWXUHGHYHORSPHQWRIFLWLHV7KH9ROXQWDU\/RFDO5HYLHZ 9/5 RI1HZ7DLSHL &LW\FDSWXUHVWKHGHYHORSPHQWWUHQGRIIXWXUHFLW\SODQQLQJYLDWKHLQWHUQDWLRQDOFLW\ WRROVZKLFKJXLGH1HZ7DLSHL&LW\WRIXWXUHGLUHFWLRQVRISROLF\LPSOHPHQWDWLRQDQG GHYHORSPHQWWKURXJKWKHDSSOLFDWLRQRI6'*VIUDPHZRUN

7KHUHDUHGLYHUVHFLWLHVLQ7DLZDQ6KRXOGWKH9/5VRIWKHFLWLHVIDLOWRHPSOR\WKHVDPH GHƉQLWLRQVFULWHULDIRUDVVHVVPHQWDQGPRQLWRULQJRUWKHVFRSHIRUPHDVXUHPHQWRQ WKHVHOHFWHG6'*,QGLFDWRUVLWZLOOLQFUHDVHWKHGLƋFXOWLHVIRUWKHVWDWHWRFRPSLOHDQ LQWHJUDWHGUHSRUW+HQFHEDVHGRQWKHFRQFHSWVGHULYHGIURPH[FKDQJHVDWKRPHDQG DEURDG1HZ7DLSHL&LW\VSHFLƉFDOO\GLVFORVHGLWV9/5PHWKRGRORJ\ZLWKWUDQVSDUHQF\ LQKRSHVRIPRUHVSDFHDQGRSSRUWXQLWLHVIRUH[FKDQJHVRQWKHUHYLHZSURFHVVRIFLW\ LQWKHGD\VWRFRPH

1HZ7DLSHL&LW\ 9ROXQWDU\/RFDO5HYLHZIRU6'*V

+RZWR/RFDOL]HWKH6'*V"

7KH6'*VRƈHUDSDWKWRGHWHUPLQLQJDUHDVRQDEOHGHYHORSPHQW

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

+HQFHLQDFFRUGDQFHZLWKWKHILYHVWHSVRI6'*VDSSOLFDWLRQVLQWHUQDWLRQDOO\1HZ 7DLSHL&LW\SURSRVHGWKH)LYH3ULQFLSOHVRILWVRZQLQWKHIDFHRIWKHFKDOOHQJHVWRD JOREDOFLW\DQGVKLIWLQJWUHQGV

/HDYLQJ1R2QH%HKLQG ,QWHJUDWLRQRI1DWXUHDQG&XOWXUH 6WUDWHJLHVZLWK3DUWQHUVKLS&RQVWUXFWLRQ$VWKH%DVLV 0XOWL/HYHO*RYHUQDQFH 7UDQVSDUHQW0HFKDQLVPIRU5HYLHZ

&KDSWHU ӕ 7KH0HWKRGRORJ\RI1HZ7DLSHL&LW\9/5

Ŏ &LW\DVWKHYHQXHIRU6'*VORFDOL]DWLRQWRFRQWULEXWHWRWKHVWDWH

)ROORZLQJWKH81+LJKOHYHO3ROLWLFDO)RUXP +/3) 1HZ

&KDSWHU GHYHORSLQJWKHUHVSHFWLYHQDUUDWLYHVDQGLVVXHV7KH9/5WKXVRƈHUVGHƉQLWLRQVIRUWKH VXEQDWLRQDOOHDGHUVSOD\LQJDYLWDOUROHLQVXSSOHPHQWLQJWKH915

$IWHUZDUGVYDULRXVWRROVDQGIUDPHZRUNVSHUWDLQLQJWRWKH6'*VZHUHSURSRVHGE\ LQWHUQDWLRQDORUJDQL]DWLRQVDQGSODWIRUPV7KHPHDQVDQGVXJJHVWLRQVSHUWLQHQWWR9/5 RIFLW\PDGHE\WKLQNWDQNVDQGQHWZRUNVZRUOGZLGHDUHVXPPDUL]HGDVIROORZV

Ŏ 7KH8QLWHG1DWLRQV+XPDQ6HWWOHPHQWV3URJUDPPH 81+DELWDW ODXQFKHGDQ RQOLQHSODWIRUPQDPHGŉ/RFDOL]LQJWKH6'*VŊRƈHULQJORFDOJRYHUQPHQWVWRROVDQG UHVRXUFHVWRIDFLOLWDWHWKHUHVSHFWLYH6'*VORFDOL]DWLRQ7KH81+DELWDW81(3 DQG*OREDO(QYLURQPHQW)DFLOLW\ *() UHOHDVHG5RDGPDSIRUORFDOL]LQJWKH6'*V ,PSOHPHQWDWLRQDQGPRQLWRULQJDWVXEQDWLRQDOOHYHO

Ŏ 7KH2(&'FRPSRVHGRIHFRQRPLHVLQLWLDWHGLWVUHVHDUFKFRQFHUQLQJ FLW\DVZHOO7ZRUHSRUWVRQXUEDQL]DWLRQDQDO\VLVZHUHFRPSLOHGRIIHULQJ UHFRPPHQGDWLRQVRQKRZWRLPSURYHWKHJRYHUQDQFHLQELJFLWLHV$FRDOLWLRQRI QHWZRUNVRIORFDOJRYHUQPHQWVDURXQGWKHJOREHWKH*OREDO7DVNIRUFHRI/RFDO DQG5HJLRQDO*RYHUQPHQWVKDVSXEOLVKHGWKHVHFRQGŉ7RZDUGVWKH/RFDOL]DWLRQ RIWKH6'*VŊVRDVWRH[SHGLWHWKHUHOHYDQWSURJUHVVIRUWKHORFDODQGUHJLRQDO JRYHUQPHQWV

Ŏ 7KH,QVWLWXWHIRU*OREDO(QYLURQPHQWDO6WUDWHJLHV ,*(6 HVWDEOLVKHG9/5/DE IRUŉEHWWHUSROLF\LQWHJUDWLRQSHHUOHDUQLQJDQGDFFRXQWDELOLW\WRFLWL]HQVŊ 7KHŉ/DEŊRIIHUVUHOHYDQWPDWHULDOVDQGSUHYLRXVFDVHVIRUORFDODQGUHJLRQDO JRYHUQPHQWV /5*V WRYROXQWDULO\EHJLQWKHUHVSHFWLYHDVVHVVPHQWRQWKHLU $JHQGDDQGWKHLPSOHPHQWDWLRQRIWKH6'*V$SDUWIURPFLYLFSDUWLFLSDWLRQLQWKH UHYLHZSURFHVVLPSURYHPHQWRIDFFRXQWDELOLW\DQGLQFOXVLYHJRYHUQDQFHHƈHFWLYH HOHYDWLRQRIORFDOSROLF\SUDFWLFHVDVZHOODVWKHVHDUFKIRULQQRYDWLYHDQGYLWDO PDWHULDOVDQGGLUHFWLRQVLWLPSURYHVWKHSUDFWLFHRIJOREDOSDUWQHUVKLSVDQG FRPSOHPHQWWKHJDSLQORFDOSUDFWLFHH[SHULHQFHZLWKH[SHULHQFHVFKDOOHQJHV DQGOHVVRQVOHDUQHGLQUHJDUGWRFLW\9/5/DELVFRQYLQFHGWKDWLWVKDOOVXSSRUW WKHIROORZLQJSUDFWLFHRIFLW\JRYHUQDQFHYLDFROOHFWLRQRILQIRUPDWLRQDQG DFFXPXODWLRQRIH[SHULHQFHV

1HZ7DLSHL&LW\ 9ROXQWDU\/RFDO5HYLHZIRU6'*V &KDSWHU

,QWKH+DQGERRNIRUWKH3UHSDUDWLRQRI9ROXQWDU\1DWLRQDO5HYLHZSXEOLVKHGE\WKH81 LQLWLPSOLHVWKDWŉWKH9/5LVEDVLFDOO\DSURFHVVLQZKLFKWKH/RFDODQG5HJLRQDO *RYHUQPHQWVUHYLHZWKHLULQWHJUDWLRQRI6'*VDQGWKHLUFRUHSULQFLSOHVDQGE\GRLQJ VRHQDEOHFRQVXOWDWLRQZLWKVWDNHKROGHUVWRGHHSHQWKHORFDOLVDWLRQSURFHVVIXUWKHU 7KH9/5UHSRUWLVDGRFXPHQWRIVXFKDFWLYLWLHVŊ1HZ7DLSHL&LW\WKXVSXVKHGIRUWKH UHOHYDQWORFDOL]DWLRQSURFHVVHVWKHUHRI

&KDSWHU ӕ 7KH0HWKRGRORJ\RI1HZ7DLSHL&LW\9/5

&LWLHV)XWXUH7UHQGDQG1HZ7DLSHL&KDOOHQJHV

Ŏ :KDW&KDOOHQJHV*OREDO&LWLHV:LOO)DFHLQWKH)XWXUH"

%\WKHJUDYHFKDOOHQJHVWRFLWLHVDUHFOLPDWHFKDQJHOLPLWHGHQYLURQPHQWDO UHVRXUFHVIRRGVHFXULW\DQGLQWHUQDOXQUHVW7KHLQFUHDVLQJFKDOOHQJHVEURXJKWIRUWK E\WKHVRFLDODQGHQYLURQPHQWDOLVVXHVGHPDQGWKLQNLQJGLVWLQFWLYHIURPWKDWRIWKHODVW

&KDSWHU FHQWXU\7KH6'*VDUHWKHQHZFRPPRQODQJXDJHWKURXJKRXWWKHSODQHWRƈHULQJDSDWK IRUFLW\WRGHWHUPLQHDUHDVRQDEOHGHYHORSPHQW7KHWKUHHLPPLQHQWFKDOOHQJHVIDFHGE\ 1HZ7DLSHL&LW\DUHDVIROORZV

1HZ7DLSHL&LW\ 9ROXQWDU\/RFDO5HYLHZIRU6'*V

$PRUHWKDQRIZRUOGSRSXODWLRQSURMHFWHGWROLYHLQXUEDQDUHDVE\

)URPDJOREDOSHUVSHFWLYHRYHUDKDOIRIZRUOGSRSXODWLRQOLYHLQFLWLHV$OVRLWLV HVWLPDWHGWKDWWKHUHZLOOEHWZRWKLUGVRIZRUOGSRSXODWLRQOLYLQJLQXUEDQDUHDVE\ SURMHFWHGDVPXFKDVELOOLRQSHRSOH$VDUHVXOWWKHXUEDQSRSXODWLRQLQWKH

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ƊRZDQGDJLQJOLNHRWKHU GHYHORSHGFRXQWULHV7KHLOOEDODQFHGSRSXODWLRQGHYHORSPHQWSRVHVDJUHDWFKDOOHQJH WR1HZ7DLSHL&LW\*RYHUQPHQW

0RUHWKDQRI:RUOG3RSXODWLRQSURMHFWHGWROLYHLQXUEDQDUHDVE\

*OREDO8UEDQDQG1RQXUEDQSRSXODWLRQ GLVWULEXWLRQ5DWLR 6RXUFH物/RFDOL]LQJ6'*V

&KDSWHU ӕ 7KH0HWKRGRORJ\RI1HZ7DLSHL&LW\9/5

%&LWLHVDUHPDLQFRQWULEXWRUVRI&2HPLVVLRQVDFFRXQWLQJIRURIJOREDO HQHUJ\SURGXFWLRQ

&OLPDWHFKDQJHLVEHFRPLQJDJUDYHWKUHDWWRXUEDQLQIUDVWUXFWXUHDQGTXDOLW\RIOLIH ,IDFLW\LVVLWXDWHGDWWKHFRDVWDODUHDLWVYXOQHUDELOLW\WRƊRRGGLVDVWHUDQGHOHYDWHG

&KDSWHU VHDOHYHOZLOOKLQGHUWKHGHYHORSPHQWDVDKDUERUFLW\GXHWRƊRRGVVXFKDV.RONDWDRI ,QGLD6KDQJKDLDQG*XDQJ]KRXRI&KLQD0LDPLDQG1HZ

5DSLG*URZWK5HODWLRQVKLSRI&LW\DVFDUERQHPLVVLRQSURGXFHU DQG&OLPDWH&KDQJH9XOQHUDELOLW\ 3RSXODWLRQ*URZWKDQG&OLPDWH9XOQHUDELOLW\LQ

7KH5HODWLRQVKLS%HWZHHQ*OREDO*URZWKRI8UEDQ 3RSXODWLRQDQG&OLPDWH&KDQJH9XOQHUDELOLW\ 6RXUFH物9HULVN0DSOHFURIW

1HZ7DLSHL&LW\ 9ROXQWDU\/RFDO5HYLHZIRU6'*V

&7UDQVERUGHULVVXHVLQFUHDVHLQJOREDOFLWLHVWKDWUHTXLUHMRLQWHƈRUWVRIFLWLHVLQWKH IDFHRIULVNVDQGFKDOOHQJHVDWWKHORFDOOHYHO

$FFRUGLQJWRWKHUHSRUWVRQUHGXFLQJGLVDVWHUULVNVIRUFLWLHVSURGXFHGE\,QWHUQDWLRQDO &RXQFLOIRU6FLHQFHDQG,QWHJUDWHG5HVHDUFKRQ'LVDVWHU5LVNFKDOOHQJHVDQGULVNV

WRJOREDOFLWLHVLQWKHIXWXUHDUHDVIROORZVDQGQHZWDLSHLFLW\LVVXUURXQGHGE\7DLSHL &KDSWHU 7DR\XDQDQG.HHOXQJFLW\DVQHLJKERUKRRGVKDOOEHPRUHFDUHIXORI

3RSXODWLRQ&KDOOHQJH,QFUHDVHRIFLWLHVDOORFFXUUHGLQWKHFRXQWULHVZLWKPLGWR ORZLQFRPHVZKLOHWKHSODQQLQJDQGPDQDJHPHQWLQYLHZRIWKHUDSLGJURZWKDQG DGDSWDWLRQWRWKHUHODWHGGLVDVWHUVDUHSRRUO\LQSODFH

'LVDVWHU5LVNV&KDOOHQJH7KHJURZWKVRIVPDOOWRZQVRXWSDFHWKRVHRIELJFLWLHVZKLOH KDYLQJOLPLWHGFDSDELOLWLHVLQKDQGOLQJULVNV

$VVHVVPHQW&KDOOHQJH7KDQNVWRGRPHVWLFYDJUDQWVDQGIRUHLJQLPPLJUDQWVVRFLDO FKDQJHVDULVHIURPWKHGRZQWRZQDUHDVRUWKHFKDQJHRISRSXODWLRQVWUXFWXUHZKLFKSRVH FKDOOHQJHVWRWKHSODQQLQJULVNVDQGORVVDVVHVVPHQWLQWKHXUEDQDUHDV

6DIHW\&KDOOHQJH7UDQVIRUPLQJIURPUHGXFLQJULVNVWRWKHPRGHIRUGHYHORSPHQWLV WKHEHVWSUDFWLFHLQVHFXULQJWKHVDIHW\IRUFLW\GZHOOHUV\HWKRZWRSURYLGHVDIH UHOLDEOHKRXVLQJDQGEDVLFVHUYLFHVUHPDLQVDFDSULFLRXVFKDOOHQJH

*RYHUQDQFH&KDOOHQJH:LWKZLGHQLQJJDSVEHWZHHQWKHSRRUDQGWKHULFKJRYHUQPHQWV KDYHWRGHOLYHUHƈHFWLYHJRYHUQDQFHDQGVXSHUYLVLRQWRVWULNHEDODQFHVLQWKHFROODERUDWLRQ DQGGHYHORSPHQWDPRQJFLWLHV

&KDSWHU ӕ 7KH0HWKRGRORJ\RI1HZ7DLSHL&LW\9/5

1HZ7DLSHL&LW\ŇV9/56WUDWHJ\%OXHSULQW

+RZJOREDOFLWLHVODLGRXWWKHGHYHORSPHQWEOXHSULQWV"

6LQFHWKHDGRSWLRQRIWKH$JHQGDWKH6'*VRIHDFKVWDWHVLQFOXGHVSHFLILF LPSOHPHQWDWLRQVWUDWHJLHVVWUHVVLQJRQWKHŉ1DWLRQDOL]DWLRQŊRIWKH6'*V3XUVXDQW WRWKHRYHUDOOVWUDWHJ\RIWKHFRXQWU\WKH9/5RIFLW\LPSOHPHQWVDQGHFKRHVZLWKWKH &KDSWHU 6'*VOD\LQJRXWWKHVWUDWHJ\EOXHSULQWVEDVHGRQWKH3ULQFLSOHVLQWKH$JHQGD 3HRSOH3ODQHW3URVSHULW\3HDFHDQG3DUWQHUVKLS

3ULQFLSOHVDVWKHEDVLVIRUWKHUHYLHZRIUHSRUWVSURGXFHGE\VWDWHV

&RXQWULHVVXFKDV,WDO\-DSDQ-RUGDQDQG3RUWXJDODOOSURSRVHGWKHLUQDWLRQDODFWLRQ SODQVEDVHGRQWKH3ULQFLSOHVIXUWKHULQWHJUDWLQJZLWKWKHUHVSHFWLYHDGPLQLVWUDWLYH V\VWHPDQGGHYHORSLQJORFDOL]HGQDWLRQDOVWUDWHJ\$IJKDQLVWDQGLYLGHGWKH6'*VLQWR VRFLRHFRQRPLFVHFWRUVIRUJRYHUQPHQWDODJHQFLHVWRFDSWXUHWKHRYHUDOOGLUHFWLRQ RILPSOHPHQWDWLRQZKLOHVWLSXODWLQJWKHLURZQWDUJHWVDQGLQGLFDWRUV&]HFK 5HSXEOLFFDWHJRUL]HGWKH6'*VLQWRNH\DUHDV(WKLRSLDFDPHXSZLWK1DWLRQDO 'HYHORSPHQW3ULRULWLHVLQUHODWLRQWRWKH6'*V

1HZ7DLSHL&LW\XWLOL]HSULQFLSOHVDVLWVEDVLVVHW9/5GUDIWLQJJXLGHOLQHV VWUDWHJ\EOXHSULQWDQGFRQWULEXWHWR9/5HFRV\VWHPLQ$VLDEDVHGFLWLHV

,QDFFRUGDQFHZLWKWKH3ULQFLSOHVRI6XVWDLQDEOH'HYHORSPHQW1HZ7DLSHL&LW\ FRPEHGWKURXJKWKHIXWXUHFKDOOHQJHVWRWKHFLW\ VHH&KDSWHU ZLWKVWUDWHJLF SULQFLSOHDVSHFWVŃ7LPH6SDFHDQG3HRSOHŃDVZHOODVSULQFLSOHRIWKLQNLQJŃ:+< +2:DQG:+$7ŃWRJHQHUDWHDFRPPXQLFDWLRQIUDPHZRUNRIVWUDWHJ\LPSOHPHQWDWLRQ IRU1HZ7DLSHL&LW\ŇVLQWHJUDWHGFRQFUHWHVROXWLRQV

1HZ7DLSHL&LW\SODQWRLPSOHPHQWFRPPXQLFDWLRQVIRU1HZ7DLSHL&LW\ŇV9/5ZLWK1HZ 7DLSHL&LW\ŇV9/56WUDWHJ\%OXHSULQWWRVWUHQJWKHQWKHSDUWQHUVKLSHVWDEOLVKHGEHWZHHQ WKHFLW\LQVWLWXWLRQVDQGWKHSHUWDLQLQJVWDNHKROGHUVRQ6'*VWRUHƊHFWWKHSDUWQHUVKLS RIFLYLFVRFLHW\DQGEXVLQHVVHVLQGHSWKDQGWRVHHNRSSRUWXQLWLHVEHWZHHQ1HZ7DLSHL &LW\DQGWKHRWKHUORFDODXWKRULWLHVRQWKHFROODERUDWLRQDQGH[FKDQJHIRU9/5VRDVWR HQKDQFHWKHPRQLWRULQJDQGUHSRUWLQJSURFHVVHVIRUWKH6'*V

1HZ7DLSHL&LW\ 9ROXQWDU\/RFDO5HYLHZIRU6'*V &KDSWHU

&KDSWHU ӕ 7KH0HWKRGRORJ\RI1HZ7DLSHL&LW\9/5

1HZ7DLSHL&LW\9/50HFKDQLVPDQG3URFHVV

$FFRUGLQJWRWKHZHEVLWH1HZ7DLSHL&LW\+HDOWK\&LW\DQG6XVWDLQDEOH'HYHORSPHQW 1HZ7DLSHL&LW\IRUPHGŉ7DLSHL&RXQW\6XVWDLQDEOH'HYHORSPHQW3URPRWLRQ7DVNIRUFHŊ RQ1RYHPEHUWKZLWKWKH'HSDUWPHQWRI(QYLURQPHQWDO3URWHFWLRQDVWKH 6HFUHWDU\WRIDFLOLWDWHWKH6'DƈDLUVHDFK\HDUIURPWKHSHUVSHFWLYHRIHQYLURQPHQWDO SURWHFWLRQ7KH7DVNIRUFHFRQYHQHVHYHU\PRQWKVDQGLVGLYLGHGLQWR,QWHUQDWLRQDO

&KDSWHU 9LVLRQ6HFWLRQ(QHUJ\VDYLQJDQG&DUERQUHGXFLQJ6HFWLRQ/2+$66HFWLRQ 5HVRXUFHVDQG,QGXVWULHV6HFWLRQ%LRGLYHUVLW\6HFWLRQ:DWHU5HVRXUFH6HFWLRQ 6RFLDO:HOIDUH6HFWLRQ6XVWDLQDELOLW\(GXFDWLRQ6HFWLRQ3XEOLF6DIHW\6HFWLRQDQG &RPPXQLW\'HYHORSPHQW6HFWLRQ

)XUWKHUPRUHWRIXOƉOOWKH$JHQGD1HZ7DLSHL&LW\UHVWUXFWXUHGWKH7DVNIRUFHDV ŉ1HZ7DLSHL&LW\+HDOWK\&LW\DQG6XVWDLQDEOH'HYHORSPHQW&RPPLVVLRQŊ%DVHGRQWKH SHUWDLQLQJPHFKDQLVPVDQGLQLWLDWLYHVIURPWKHLQWHUQDWLRQDOFRPPXQLW\WKH&RPPLVVLRQ DJJUHJDWHVDGHTXDWHSROLF\RXWFRPHGHYHORSPHQWSURFHVVSUDFWLFDOH[SHULHQFHDQG UHYLHZPHFKDQLVPIRUWKHIROORZLQJFRPPXQLFDWLRQDQGH[FKDQJHZLWKLQWHUQDWLRQDO QHWZRUNVLQFOXGLQJWKHIRXUVWHSVDVIROORZV

6WHS(QJDJH,QFOXVLYH/RFDOL]DWLRQRIWKH6'*VDQG0XOWLVWDNHKROGHUV 3DUWLFLSDWLRQ 7KHNQRZOHGJHRIYDULRXVDJHQFLHVZLWKLQWKH&LW\*RYHUQPHQWRQWKH6'*VDUHWR EHLPSURYHGVRDVWRFUHDWHDQGSURDFWLYHO\SDUWLFLSDWHWKURXJKGLDORJXHVRIPXOWLSOH VWDNHKROGHUVDQGWROD\RXWWKHSULRULWLHVRI6XVWDLQDEOH'HYHORSPHQWYLDPXOWLIDFHWHG DUUDQJHPHQWRIJRYHUQDQFH

6WHS3URPRWH0HDQVIRU&LYLF3DUWLFLSDWLRQLQ/RFDOL]LQJWKH6'*V 2QWKHORFDOL]DWLRQRIWKH6'*VWKHNH\OLHVLQWKHDVVXUDQFHRIDVXVWDLQDEOH GHYHORSPHQWIRUWKHIXWXUHZLWKQRRQHRUSODFHOHIWEHKLQG7KURXJKWKH9/5WKHFLW\ FDQSURYLGHFLWL]HQUHSUHVHQWDWLYHVNQRZOHGJHDVZHOODVWKHPHDQWRSDUWLFLSDWLRQDQG FRPPXQLFDWLRQZKLOHIDFLOLWDWLQJJOREDOFRPPXQLFDWLRQDQGGLVFXVVLRQDFURVVGRPDLQV RQWKHYLDEOHORFDODJHQGDIRUWKH6'*V

6WHS5HYLHZRQWKH6'*V,PSOHPHQWDWLRQ3URJUHVVHV5HJXODUO\ 7RDWWDLQWKH6'*VE\1HZ7DLSHL&LW\SXVKHGIRUWKHVKRUWPLGDQGORQJ WHUPUHYLHZSURFHVVHVE\YDULRXVGHSDUWPHQWVEDVHGRQWKHUHYLHZRXWFRPHIRUWKH *RDOVVRDVWRLPSOHPHQWDQGSURJUHVVWKH6'*VLQWKHFLW\ŇVJRYHUQDQFHƉQDQFLQJ UHVRXUFHVDQGJOREDOSDUWQHUVKLS

6WHS0RQLWRU6'*V3URJUHVV 3XUVXDQWWRWKHH[LVWLQJDGPLQLVWUDWLYHRXWFRPHDQGGDWDV\VWHP1HZ7DLSHL&LW\ LPSURYHVWKHSURJUHVVRQ6'*V,QGLFDWRUVDVZHOODVWKHHƋFLHQF\LQUHYLHZLQJSURMHFW H[HFXWLRQ:HLQWHJUDWHWKH0RQLWRUDQG(YDOXDWLRQ 0 ( PHFKDQLVPDQGWKHSUDFWLFHV RIWKH6'*VWRVXSSO\WKHGHYHORSPHQWRIUHVRXUFHVUHTXLUHGDWWKHORFDOOHYHOVRDVWR UHDOL]HDFRPSUHKHQVLYHJRYHUQDQFHZLWKLPSDFW

1HZ7DLSHL&LW\ 9ROXQWDU\/RFDO5HYLHZIRU6'*V &KDSWHU

&KDSWHU ӕ 7KH0HWKRGRORJ\RI1HZ7DLSHL&LW\9/5

1HZ7DLSHL&LW\DQGLWV5HJLRQ

9/5SOD\VDYLWDOUROHLQWKHQDWLRQDOUHYLHZPHFKDQLVPRI6'*V

&LW\LVWKHNH\WRWKHIXOƉOOPHQWRIJOREDOJRDOV7KH9/5RI1HZ7DLSHL&LW\DLPVIRUWKH UHDOL]DWLRQRIWKH6'*V:HDVWKHFLWL]HQVFDQDOVRXWLOL]HWKHUHODWLRQVKLSVZLWKLQWKH FRXQWU\WKHUHJLRQDQGWKHLQWHUQDWLRQDOFRPPXQLW\WKURXJKWKHFLW\ZLWKWKUHHWKHPHV

9ROXQWDU\1DWLRQDO5HYLHZ 915 &KDSWHU 5HYLHZRQWKH6'*VFRQWULEXWLRQLQWKH$VLDQ3DFLƉFUHJLRQ

7KH9/5LQUHODWLRQWRWKHLQWHUQDWLRQDOFRPPXQLW\

7KHPH7KHUHODWLRQVKLSEHWZHHQ915DQGORFDOJRYHUQPHQW

7KH1DWLRQDO&RXQFLOIRU6XVWDLQDEOH'HYHORSPHQW 1&6' WKH([HFXWLYH

Ŏ ŉ+HDOWKDQG:HOIDUH:RUNLQJ*URXSŊ KRVWE\WKH0LQLVWU\RI+HDOWKDQG:HOIDUH

Ŏ ŉ/LIHDQG(GXFDWLRQ:RUNLQJ*URXSŊ KRVWE\WKH0LQLVWU\RI(GXFDWLRQ

Ŏ ŉ*UHHQ(FRQRP\:RUNLQJ*URXSŊ KRVWE\WKH1DWLRQDO'HYHORSPHQW&RXQFLO

Ŏ ŉ*UHHQ7UDQVSRUWDWLRQ:RUNLQJ*URXSŊ KRVWE\WKH0LQLVWU\RI7UDQVSRUWDWLRQDQG&RPPXQLFDWLRQV

Ŏ ŉ7HUULWRULDO5HVRXUFHVDQG8UEDQDQG5XUDO'HYHORSPHQW:RUNLQJ*URXSŊ KRVWE\WKH0LQLVWU\RIWKH,QWHULRU

Ŏ ŉ6XVWDLQDEOH$JULFXOWXUHDQG%LRGLYHUVLW\:RUNLQJ*URXSŊ KRVWE\WKH&RXQFLORI$JULFXOWXUH

Ŏ ŉ(QYLURQPHQWDO4XDOLW\:RUNLQJ*URXSŊ KRVWE\WKH(QYLURQPHQWDO3URWHFWLRQ$GPLQLVWUDWLRQ

Ŏ ŉ&OLPDWH&KDQJHDQG(QHUJ\DQG&DUERQUHGXFWLRQ7DVNIRUFHŊ WKHSHUVRQQHORI(QYLURQPHQWDO3URWHFWLRQ$GPLQLVWUDWLRQ

Ŏ ŉ1XFOHDU)UHH+RPHODQG3URPRWLRQ7DVNIRUFHŊ WKHSHUVRQQHORI0LQLVWU\RI(FRQRPLF$ƈDLUV

1HZ7DLSHL&LW\ 9ROXQWDU\/RFDO5HYLHZIRU6'*V

7KHPDMRU6'GRFXPHQWVVLQFHWKHHVWDEOLVKPHQW ,Q6HSWHPEHUDVWKH6HFUHWDULDWRIWKH1&6'WKH RIWKH1&6' (QYLURQPHQWDO3URWHFWLRQ$GPLQLVWUDWLRQ (3$ FRPSLOHG WKHYHU\ILUVWŉ9ROXQWDU\1DWLRQDO5HYLHZŊRI7DLZDQ $JHQGDWKH6XVWDLQDEOH'HYHORSPHQW3ROLF\ UHƊHFWLQJWKHJRYHUQPHQWRI7DLZDQŇVSDUWLFLSDWLRQLQ *XLGHOLQHVIRUWKH5HSXEOLFRI&KLQD WKHJOREDOWUHQGIRU1*2VVFKRODUVDQGWKHJHQHUDO

0D\ SXEOLFWRGLVFXVVDQGFRPPXQLFDWHRQWKH6'*V &KDSWHU ODQGVFDSHRI7DLZDQODLGRXWLQWKH915DQGSURGXFH 6XVWDLQDEOH'HYHORSPHQW$FWLRQ3ODQ LQWHUSUHWDWLRQVYLDGLƈHUHQWSHUVSHFWLYHV 6HSWHPEHU

7DLZDQ'HFODUDWLRQRQ6XVWDLQDEOH'HYHORSPHQW 7KHSDUWWKDWLVLQGLUHQHHGRILPSURYHPHQWLQWKLV -DQXDU\ 915LVPRVWO\WKH6'SROLF\DOLJQPHQW&URVVDJHQF\ FROODERUDWLRQ KRUL]RQWDO QHHGVWREHLPSURYHGZLWKWKH 6XVWDLQDEOH'HYHORSPHQW,QGLFDWRUV 6'*VDVWKHSROLF\JXLGHOLQHV+RZHYHUWKLVYHUVLRQRI -XQH 915IDLOHGLQLQWHJUDWLQJWKH6'*FRQWULEXWLRQVPDGHE\ 7DLZDQ$JHQGD1DWLRQDO6XVWDLQDEOH WKHORFDOJRYHUQPHQWV,QWHUPVRILQGLFDWRUVLWDOVRIHOO 'HYHORSPHQW9LVLRQDQG6WUDWHJ\*XLGHOLQHV VKRUWLQVXSSO\LQJWKHGDWDPDSSLQJDVUHFRPPHQGHGE\ 1RYHPEHU WKH81VWDWLVWLFDOERG\ 6XVWDLQDEOH'HYHORSPHQW3ROLF\*XLGHOLQHV :LWKWKLV1HZ7DLSHL&LW\9ROXQWDU\/RFDO5HYLHZZH 6HSWHPEHU SURDFWLYHO\VKDUHRXUSURJUHVVRQWKH6'*V$SDUWIURP WKHQG(GLWLRQRI6XVWDLQDEOH'HYHORSPHQW,QGLFDWRUV PDSSLQJWKHSURJUHVVZLWKWKH81ŇV6'*,QGLFDWRUV 'HFHPEHU ZHDOVRHQJDJHSUHOLPLQDU\PDSSLQJZLWKWKHGUDIW 6WUDWHJ\DQG'LUHFWLRQIRU*UHHQ(FRQRP\3URPRWLRQ 7DLZDQ6XVWDLQDEOH'HYHORSPHQW,QGLFDWRUVLQKRSHVRI -XQH DYHUWLFDOFRPPXQLFDWLRQEHWZHHQWKHFHQWUDODQGWKH ORFDOJRYHUQPHQWVDOORZLQJDVPRRWKHUFRPSDULVRQ 6XVWDLQDEOH'HYHORSPHQW*RDOVRI7DLZDQ FRPPXQLFDWLRQDQGFRRSHUDWLRQZLWKRWKHUFRXQWULHV 'HFHPEHU YLD7DLZDQŇVFRQWULEXWLRQVRQWKH6'*V

&KDSWHU ӕ 7KH0HWKRGRORJ\RI1HZ7DLSHL&LW\9/5

7KHPH5HYLHZRQWKH&RQWULEXWLRQWRWKH6'*VLQWKH$VLDQ3DFLƉF5HJLRQ

7KH81(FRQRPLFDQG6RFLDO&RPPLVVLRQIRU$VLDDQGWKH3DFLƉF 81(6&$3 VHUYHV DVDUHJLRQDOKXEWRIDFLOLWDWHFROODERUDWLRQDPRQJFRXQWULHVWRDFKLHYHLQFOXVLYHDQG VXVWDLQDEOHGHYHORSPHQW5HLQIRUFLQJDQGGHHSHQLQJE\SURPRWLQJUHJLRQDOFRRSHUDWLRQ DQGLQWHJUDWLRQWKH(6&$3DGYDQFHVFRQQHFWLYLW\ƉQDQFLDOFRRSHUDWLRQDQGPDUNHW LQWHJUDWLRQ &KDSWHU 6LQFHDVLJQLƉFDQWJDSH[LVWVDPRQJWKH$VLDQDQG3DFLƉFUHJLRQVLQWKHIDFHRIGLYHUVH FKDOOHQJHVDOOUHJLRQVDQWLFLSDWHSURJUHVVHVPDGHIURPLPSOHPHQWLQJGLƈHUHQW*RDOV 1HYHUWKHOHVVGLYHUWLQJIURPWKHWUHQGRIQHJDWLYLW\LQDOORIWKHVXEUHJLRQVLVUHTXLUHG $FFRUGLQJWRWKHODWHVWUHYLHZLQWKHVKDUHGFKDOOHQJHVWRWKH$JHQGD DPRQJWKH$VLDQ3DFLƉFUHJLRQDUH

, WKHODFNRISDUWQHUVKLSWRH[SHGLWHWKHSURJUHVVIRUWKH*RDOV

,, WKHODFNRIIXQGVDQGUHVRXUFHVWRWDFNOHXQDWWHQGHGLVVXHV

,,, WKHODFNRIUHOLDEOHGDWD

,QDGGLWLRQEDVHGRQWKHFXUUHQWSURJUHVVHVWKH$VLDQ3DFLƉFUHJLRQZLOOQRWEHDEOH WRDWWDLQWKH6XVWDLQDEOH'HYHORSPHQW*RDOVE\7KXVKRZWRDFFHOHUDWHWKH SURJUHVVRUWXUQWKHQHJDWLYHWLGHIRUDOOWKH6'*VLVWKHJDSVHHQLQWKH6'* LQGLFDWRUUHSRUWVDPRQJWKH$VLDQ3DFLƉFUHJLRQ DVWKHƉJXUHVKRZQ

*RDO *RDO *RDO *RDO *RDO *RDO *RDO *RDO *RDO *RDO *RDO *RDO *RDO *RDO *RDO *RDO *RDO

3URJUHVVRI6'*VLQ$VLDDQGWKH3DFLILFLQ 6RXUFH物81(6&$3

1HZ7DLSHL&LW\ 9ROXQWDU\/RFDO5HYLHZIRU6'*V

7KHSURJUHVVHVPDGHRQ6'*DQGLQWKH$VLDQ3DFLƉFUHJLRQDUHORZHUE\ OHYHOVDJDLQVWWKH*RDOV2YHUDKDOIRIWKH6'*VJDLQHGQRWKLQJLQWKH$VLDQ 3DFLƉFUHJLRQLQFOXGLQJ6'*DQG,QWKHGXUDWLRQRI FRXQWULHVLQWKH$VLDQ3DFLƉFUHJLRQIHOOEHKLQGRQWKHJURZWKRIWKHGRPHVWLF VSHQGLQJSHUFDSLWDLQFRPH &KDSWHU 1HZ7DLSHL&LW\LVFRQYLQFHGWKDWORFDOJRYHUQPHQWVKDYHWRGHPRQVWUDWHOHDGHUVKLS DQGDVVLVWWKHFRXQWU\LQVKRXOGHULQJWKHJUHDWUHVSRQVLELOLW\RIGHYHORSPHQW+HQFH GHVSLWHWKHWRXJKFKDOOHQJHVDKHDG1HZ7DLSHL&LW\LVNHHQRQHQKDQFLQJWKH FRRSHUDWLRQPHFKDQLVPDPRQJWKHFLWLHVLQWKH$VLDQ3DFLƉFUHJLRQVRDVWRLPSURYH WKHSURJUHVVDQGH[FKDQJHVRQWKHQHFHVVDU\GDWDDQGVWDWLVWLFVTXDOLW\7KH$VLDQ 3DFLƉFUHJLRQKDVWRDFFHOHUDWHLWVHVWDEOLVKPHQWRIFLW\FRRSHUDWLRQPHFKDQLVPLQWKH 6'*UHJDUGOHVVWKHUHVRXUFHPRELOL]HGRUWKHVWDWLVWLFDOFDSDELOLW\6LQFHWKH6'*V DUHLQWHUUHODWHGWKH9/5VRIFLWLHVLQWKH$VLDQ3DFLƉFUHJLRQZLOOEHQHƉWWKHLQYHQWRU\ SURJUHVVIRUWKHUHVSHFWLYHFRXQWULHV

$YDLODELOLW\RI6'*V'DWDDQG,QGLFDWRUVIRU$VLDDQGWKH 3DFLILFLQ 6RXUFH物81(6&$3

&KDSWHU ӕ 7KH0HWKRGRORJ\RI1HZ7DLSHL&LW\9/5

7KHPH7KH5HODWLRQVKLSRI9/5ZLWKWKH,QWHUQDWLRQDO&RPPXQLW\

Ŏ 2YHUDKDOIRI915VDQGWKHIROORZXSPHFKDQLVPVJOREDOO\LQYROYHORFDOJRYHUQPHQW

7KRXJKLQFRUSRUDWLQJORFDODQGUHJLRQDOSHUVSHFWLYHVLQWRWKH9ROXQWDU\1DWLRQDO5HYLHZ

&KDSWHU ZDVQRWVWUHVVHGRYHUDKDOIRIWKHQDWLRQDOJRYHUQPHQWVZRUOGZLGHZRUNHGZLWKORFDO JRYHUQPHQWVRQWKHLU915V7KLVSKHQRPHQRQGHQRWHVWKHVLJQLƉFDQFHRIFRRUGLQDWLRQ DPRQJDOOOHYHOVRIJRYHUQPHQWVWRWKHSURFHVVHVRIORFDODQGUHJLRQDOSDUWLFLSDWLRQ DVZHOODVLQWHJUDWLRQ)XUWKHUGHYHORSPHQWIRUGLDORJXHVLQPXOWLSOHOHYHOVEHWZHHQ JRYHUQPHQWVDQGWKH81ŇVERGLHVDVZHOODVIRUMRLQWDFWLRQVEHWZHHQWKHORFDODQGWKH FHQWUDOJRYHUQPHQWVDUHUHTXLUHGDVZHOO:HKDYHWRKROGWKHORFDODQGWKHUHJLRQDO OHDGHUVUHVSRQVLEOHIRUWKHLUSDUWLFLSDWLRQDQGSURPLVHVVRDVWRDFFHOHUDWHWKH SURJUHVVIRUWKH6'*V

3URJUHVV0DSRI*OREDO915VDQG/RFDO5HJLRQDO*RYHUQPHQW&RQVXOWDWLRQ 6RXUFH物/RFDOL]LQJ6'*V

1HZ7DLSHL&LW\ 9ROXQWDU\/RFDO5HYLHZIRU6'*V

Ŏ &LW\DVWKHFDWDO\VWIRUWKHLPSOHPHQWDWLRQRIWKH6'*V

:LWKDQLQFUHDVLQJQXPEHURI915VXEPLVVLRQFLWLHVDQGVWDWHVLQGLƈHUHQWUHJLRQV SURDFWLYHO\SLWFKLQRQHDIWHUDQRWKHU%HVLGHVPDQLIHVWLQJWKHGHWHUPLQDWLRQRI JRYHUQPHQWVLQWKHLPSOHPHQWDWLRQRIWKH6'*VYDULRXV6'*VWRROVDOVRIDFLOLWDWH

GLVFXVVLRQRIVWDNHKROGHUVRQWKHRSSRUWXQLWLHVRI6ROXWLRQ'ULYHQ,QQRYDWLRQZKLFK &KDSWHU KDYHEHFRPHWKHFROODERUDWLYHEDVLVIRUGLDORJXHVDPRQJUHJLRQVDQGFRXQWULHV,QPDQ\ VWDWHVDSDUWIURPORFDOJRYHUQPHQWVFLYLFVRFLHWLHVSULYDWHVHFWRUVWKHDFDGHPLDDQG LQWHUQDWLRQDORUJDQL]DWLRQVIRUPVWUDWHJLFDOOLDQFHVDFURVVGLVFLSOLQHVHQFRXUDJLQJWKH JRYHUQPHQW VŇLQYROYHPHQWDWWKHORFDODQGUHJLRQDOOHYHOV

,QYLHZRIHYHULQFUHDVLQJLVVXHVPDQ\FLWLHVKDYHOHGSURDFWLYHGLDORJXHVEH\RQG QDWLRQDOOHYHORQVSHFLƉF*RDOVLQDQDWWHPSWWRVXUPRXQWFKDOOHQJHVZLWKRWKHUFLWLHV WKURXJKLQQRYDWLYHGLVFXVVLRQV)RULQVWDQFHWKHUHKDYHEHHQWUDQVERUGHUKXPDQULJKW RUJDQL]DWLRQVLQWHJUDWHGDQGFROODERUDWLQJIRUWKHULJKWVRIWKHFRQWUDFWXDOZRUNHUVLQ ZDVWHFROOHFWLRQDQGUHF\FOLQJEXVLQHVV

7KURXJKFRQYHUJLQJGLYHUVHVWDNHKROGHUVFLWLHVIDFLOLWDWHWKHUHVROXWLRQRILQWHUUHODWHG DQGWUDQVGLVFLSOLQDU\LVVXHV3LORWLQQRYDWLYHVROXWLRQVDUHWHVWHGLQFLWLHVEHIRUHVFDOLQJ XSQDWLRQDOO\RUDFURVVERUGHUVGUDZLQJFLWL]HQU\WRPDJQLI\WKHLPSDFWYLDWKHSXEOLF HYHQWVWRXULVPIDLUVVFKRRODFWLYLWLHVOLEUDULHVDQGFXOWXUDOHYHQWVDOUHDG\LQWKHFLW\

7KHJOREDODVZHOODVWKHUHJLRQDOFLW\QHWZRUNVDUHZRUNLQJUHOHQWOHVVO\WRLQVHUW6'*V ORFDOL]DWLRQLQWRYDULRXVDJHQGDVGHVSLWHWKHOLPLWHGVXFFHVVDWSUHVHQW1HYHUWKHOHVV WKH\JDLQHGPRUHJURXQGVIRUPLQRULWLHVDQGLQWKHPLGWRVPDOOFLWLHV,QSDUWLFXODULW LVYLWDOWRDYHUWWKHVHQVHRIEHLQJIRUFHGWRLQWURGXFHWKHDJHQGDWRWKHFLW\ HVSHFLDOO\ LQWKHFRXQWULHVRUFLWLHVLQWKHORZWRPLGGOHLQFRPHJURXS LQWKHSURFHVVRIORFDOL]LQJ LQWHUQDWLRQDODJHQGD:HVKRXOGDYRLGWKHVHQVHRIOLPLWHGVXSSRUWWRWKHFKDQJHVDW WKHFLW\OHYHORUWKHPLVXQGHUVWDQGLQJRIGLƋFXOW\LQFRRSHUDWLQJZLWKRWKHUVHFWRUVRU JRYHUQPHQWDJHQFLHV:HVKRXOGHPSOR\WKHEHOLHIŉWKH6'*VLVSDUWRIWKHHYHU\GD\MRE RIORFDOJRYHUQPHQWŊDVWKHFRPSDVVWRHQFRXUDJHDQGH[SDQGWKH6'*VFRRUGLQDWLRQ DQGIROORZXSPHFKDQLVPIRUDFWLRQVDVUHTXLUHG

&KDSWHU 'DWDDQG,QGLFDWRUVRI 1HZ7DLSHL&LW\6'*V

6'*,QGLFDWRUVRI 1HZ7DLSHL&LW\9/5

1HZ7DLSHL&LW\9/55HYLHZ3ULRULWLHV 1HZ7DLSHL&LW\9/55HYLHZ&ULWHULD

1HZ7DLSHL&LW\DQG6'*

1HZ7DLSHL&LW\RQ *OREDO7UHQGRI6'*V

1HZ7DLSHL&LW\DQG*OREDO*RDOV

&KDSWHU ӕ 'DWDDQG,QGLFDWRUVRI1HZ7DLSHL&LW\6'*V

6'*,QGLFDWRUVRI1HZ7DLSHL&LW\9/5

7ROD\WKHIRXQGDWLRQIRUWKHUHYLHZDQGFRPPXQLFDWLRQRIWKH6'*V1HZ7DLSHL&LW\ 9/5UHYLHZVWKHIUDPHZRUNDQGWKH6'*VORFDOL]DWLRQSULQFLSOHVIRUFLW\YLD6'*VGDWD RIWKHFLW\DQGLQGLFDWRUWRROVDQGEDVHGRQWKHLQWHUQDWLRQDOFLW\GHYHORSPHQWWUHQG $JJUHJDWLQJWKHSUHYLRXVUHVXOWVRI1HZ7DLSHL&LW\ZLWKGDWDDQGLQGLFDWRUVWKH9/5 SURYLGHVLQLWLDOJRYHUQPHQWDOFDVHVWXGLHVDQGGDWDWRDOORZFLWLHVWRGLVFXVVRQGLƈHUHQW LVVXHVDQGIXUWKHUH[FKDQJHRQDVSHFWVRIRSSRUWXQLWLHVFKDOOHQJHVDQGWUHQGVLQ EHWZHHQFLWLHVWRZDUGH[SDQVLRQRIYDULRXVFROODERUDWLYHRSSRUWXQLWLHVIURP7DLZDQWR LQWHUQDWLRQDOFRPPXQLW\

7KH9/5LQGLFDWRUVLQDFFRUGDQFHZLWKWKH9/5UHYLHZSULRULWLHVRI 1HZ7DLSHL&LW\ VHHVHFWLRQ

7KH81+DELWDWFLWLHVKDYHWRWDNH6'*DVSULRULW\ZLWK7DUJHWV &KDSWHU

7KH+/3)DQG8*/*6'*VLQWRWDOLQFOXGLQJ6'*6'*6'*6'* 6'*6'*6'*6'*6'*DQG6'*

2WKHUJOREDOFKDOOHQJHV6'*VLQWRWDOLQFOXGLQJ6'*V6'*6'*6'* 6'*DQG6'*

1HZ7DLSHL&LW\ 9ROXQWDU\/RFDO5HYLHZIRU6'*V

*OREDO,QGLFDWRUV

7RIDFLOLWDWHWKHFRPSUHKHQVLYHLPSOHPHQWDWLRQDQGPRQLWRULQJRIWKH6'*VLQ1HZ 7DLSHL&LW\WKHGHFLVLRQPDNHUVKDYHWRHPSOR\GDWDDQGVWDWLVWLFDOPHWKRGVWKDWDUH DFFXUDWHWLPHO\WUDQVSDUHQWDQGHDV\WRXVH%DVHGRQWKHUHFRPPHQGDWLRQVIURP WKH816WDWLVWLFV'LYLVLRQDQG81'$7$WKH*OREDO,QGLFDWRUVIROORZWKHIRUPDWDQG IUDPHZRUNRIŉRSHQGDWDDQGLQIRUPDWLRQŊDOLJQHGZLWKWKHLQGLFDWRUVRI,$(* 6'*V VHHVHFWLRQ

1DWLRQDO,QGLFDWRUV

,QFRPSLOLQJWKH9ROXQWDU\1DWLRQDO5HYLHZWKH1DWLRQDO&RXQFLOIRU6XVWDLQDEOH 'HYHORSPHQWHPSOR\HGWKHORFDOL]HGLQGLFDWRUVXQLTXHWR7DLZDQ+HQFHLQGLFDWRUV &KDSWHU SHUWDLQLQJWRWKHGDWDRI1HZ7DLSHL&LW\DUHVHOHFWHGDQGPDSSHGIRUWKHHDVHRI SURJUHVVUHYLHZVDWWKHXUEDQUHJLRQDODQGQDWLRQDOOHYHOVDVZHOODVIRUWKHIROORZXS DFWLRQV VHHVHFWLRQ

1HZ7DLSHL&LW\,QGLFDWRUV

)UDPHZRUNRI1HZ7DLSHL&LW\LQGLFDWRUVDUHIRUPHGDQGƉQDOL]HGWKURXJKWKHUHJXODU GLVFXVVLRQRI1HZ7DLSHL&LW\Ń+HDOWK\&LW\DQG6XVWDLQDEOH'HYHORSPHQW&RPPLWWHH ZKLFKLVDVVLJQHGE\FURVVGHSDUWPHQWDQGEXUHDXVFRRUGLQDWHGE\VHFUHWDULDWWHDP IRUSURSRVHGDJHQGDDQGWUDFNLQJORFDOL]DWLRQRILQGLFDWRUVGLVFXVVLRQDQGHYDOXDWLRQ :LWKIRXUNH\VWHSVPHQWLRQHGDOVRLQZHFDQPDNHVXUHLQGLFDWRUVDQGLWV IUDPHZRUNFRQWULEXWHWRQDWLRQDODQGJOREDOSURJUHVV,QWKH9/5ZH YHODEHOHGGDWD ZLWK\HV Y RUQR [ UHPDUNWRUHIOHFWLWVLQFOXVLRQRI1HZ7DLSHL&LW\LQGLFDWRUV UHVSHFWLYHO\

1RWH$ERYHLQGLFDWRUVDUHUHYLHZLQJEDVHGRQUHJXODUJOREDODQGQDWLRQDOGLVFXVVLRQ 1HZ7DLSHL&LW\9/5LVEDVHGRQWKHLQIRUPDWLRQUHOHDVHGLQ-XO\

&KDSWHU ӕ 'DWDDQG,QGLFDWRUVRI1HZ7DLSHL&LW\6'*V

1HZ7DLSHL&LW\9/55HYLHZ3ULRULWLHV

,QWKH810HPEHU6WDWHVDGRSWHGWKH6'*VDQGWKH$JHQGD

%DVHGRQWKHH[SHULHQFHVRIFRPSLODWLRQIRUWKH915UHSRUWVRILQWHUQDWLRQDO QHWZRUNVDQGRI1HZ

D DFFRUGLQJWRWKHUHFRPPHQGDWLRQVUHOHDVHGE\WKH81+DELWDWLQ 1HZ7DLSHL&LW\ŇV9/5VWUHVVHVILUVWWKHUHYLHZRQŉ6'*6XVWDLQDEOH&LWLHV

&KDSWHU DQG&RPPXQLWLHVŊLQSDUDOOHOZLWKWKHFRRUGLQDWLRQPHFKDQLVPIRUFLW\UHYLHZ E\WKHŉDSSRLQWHGŊDJHQFLHVRIWKH81

E LQDFFRUGDQFHZLWKWKHIRFXVHG6'*VRIWKH\HDUE\WKH81+/3) 6'*V DQG DQGWKHUHFRPPHQGHGIRFXVHG6'*VIRUFLW\ 6'*V DQG DVZHOODVWRPHHWWKHFLW\ŇVGHYHORSPHQWWUHQGHDFK\HDU DQGWKHUHFRPPHQGDWLRQVIURPGLDORJXHVEHWZHHQWKHORFDOFRPPXQLW\DQG JRYHUQPHQWSHUWDLQLQJ6'*VVKDOOEHUHYLHZHG

F $VIRUWKHUHVWRIWKH6'*V DQG WKHUHYLHZRIWKHVH6'*V IURPDSHUVSHFWLYHRIJOREDOFKDOOHQJHVKDOOJUDQW1HZ7DLSHL&LW\GLIIHUHQW RSSRUWXQLWLHVDQGSRVVLELOLWLHVIRUH[FKDQJHZKHQSDUWLFLSDWLQJLQWHUQDWLRQDO FRQIHUHQFHV

1HZ7DLSHL&LW\ 9ROXQWDU\/RFDO5HYLHZIRU6'*V

$81+DELWDW&LW\VKRXOGSXW6'* DVWKHSULRULW\LQWKHUHYLHZ

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

UHYLHZ,QWKHLPSOHPHQWDWLRQRIWKH6'*VE\VWDWHV VWUHVVHVPRVWWKHDQDO\VLVRQWKHUHODWLRQVKLSVEHWZHHQ &KDSWHU WKHVHVWDWHVDOOIRXQGWKDWLWLVYLWDOIRUWKHORFDOWKH WKH6'*DQGWKHUHVWRIWKH6'*VIRUWKHFLW\ UHJLRQDQGFLW\WRHFKRZLWKHDFKRWKHU&RQVHTXHQWO\ WKH81+DELWDWZLWKWKHŉDSSRLQWHGŊDJHQFLHVRIWKH

&KDSWHU ӕ 'DWDDQG,QGLFDWRUVRI1HZ7DLSHL&LW\6'*V

7KHLQGLFDWRUVDQGVFRSHRIGDWDFROOHFWLRQRI 7KHSURJUHVVHVPDGHE\FLWLHVZLOODƈHFWWKH WKH6'*UHTXLUHVXQLTXHORFDODVVLVWDQFH RYHUDOODJJUHJDWLRQRI6'*VIRUWKHFRXQWU\

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

&KDSWHU 1DWLRQV:RUOG'DWD)RUXPRQZKLFKGLVFXVVLRQV RQWKH6'*ZHUHEURXJKWIRUWKDVZHOO7RPHHWWKH IXWXUHGHYHORSPHQWQHHGVRIWKHFRXQWU\WKHIXWXUH FKDOOHQJHVDQGWKHGHYHORSPHQWWUHQGRIWKHFLW\DV ZHOODVWKHWUDQVERUGHUFROODERUDWLRQDQGDSSOLFDWLRQ RQFLW\JRYHUQDQFH1HZ7DLSHL&LW\ZLOOSXWIRUWKWKH GHWDLOVDQGUHODWLRQVKLSIRUWKHGHILQLWLRQVE\1HZ 7DLSHL&LW\LQWKHIROORZLQJVHFWLRQ

6RXUFH物81+DELWDW

1HZ7DLSHL&LW\ 9ROXQWDU\/RFDO5HYLHZIRU6'*V

%'HYHORSPHQW,PSOHPHQWDWLRQDQG 0RQLWRULQJIURPWKH+/3)

7RHQVXUHQRRQHOHIWEHKLQGDQGWKHSURJUHVVRI 6WDUWLQJIURPWKH$JHQGDIRU6XVWDLQDEOH DWWDLQLQJ*RDOVWKH81ŇV+LJKOHYHO3ROLWLFDO)RUXP 'HYHORSPHQWFDPHLQWRHƈHFWDFURVVWKHLQWHUQDWLRQDO +/3) UHOHDVHG\HDUO\UHSRUW6\QWKHVLV5HSRUW FRPPXQLW\ZLWKWKHDLPIRUDOOVWDWHVWRLQWHJUDWHWKH LQDQGVXPPDUL]LQJWKH\HDUO\ GLPHQVLRQVRIŉHFRQRP\VRFLHW\DQGHQYLURQPHQWŊ SURJUHVVHVPDGHIRUWKH6'*V1RZWKDWWKH6'*V LQWKHQH[W\HDUVWRVROYHWKHSUHVVLQJLVVXHV DQG7DUJHWVDUHPDQ\WKH+/3)UHYLHZVGLƈHUHQW6'*V DURXQGWKHZRUOG+HQFHWKH+/3)ZLOOVKDUHUHOHYDQW UHVSHFWLYHO\IURPWREDVHGRQWKHWRSLFVDQG H[SHULHQFHVHYHU\\HDULQFOXGLQJWKHVXFFHVVHVWKH WKHFKDUDFWHULVWLFVRI*RDOVHDFK\HDUDQGUHOHDVHG FKDOOHQJHVDQGWKHOHVVRQVOHDUQHGZKLOHVXSSO\LQJ 6'*UHSRUWRQWKHWRSLFRIWKH\HDU HJ6'*V SROLWLFDOPRPHQWXPDGYLFHDQGUHFRPPHQGDWLRQV DQGIRUDQGDGHGLFDWHGIRUXPWKHPHG IRUWKHIROORZXSDFWLRQV7RHIIHFWLYHO\PRQLWRUWKH

ZLWKRFHDQ +RZHYHUWKH6'**OREDO3DUWQHUVKLS LPSOHPHQWDWLRQRIVWDWHVWKH9ROXQWDU\1DWLRQDO5HYLHZ &KDSWHU LVWKHIRFXVHG*RDOIRUUHYLHZHDFK\HDUIRULW LVHPSOR\HGDVWKHPHFKDQLVPWRPRQLWRUWKHSURJUHVV IXQFWLRQVWROLQNXSDOOWKHRWKHU6'*VHQKDQFLQJWKH RIHDFK0HPEHU6WDWHVPDGHRQWKH6'*VVRDVWR FRPPXQLFDWLRQVLQEHWZHHQWKH6'*V HQJDJHGHOLEHUDWLRQVGXULQJWKH+/3)

7KH+/3)ŇV\HDUO\WRSLFKHOSVGLUHFWDWWHQWLRQDVZHOO 1HYHUWKHOHVVWKH915RUWKH\HDUO\+/3)LVDWPRVWD WRWKHVHOHFWHG6'*VIRUIXUWKHULQGHSWKUHYLHZ7KDW QDWLRQDOOHYHOUHYLHZZKHUHDVWKHWUXHLPSOHPHQWDWLRQRI LVWKHUHDVRQWKH0HPEHU6WDWHVZLOOWDNHIROORZXS WKH6'*VUHOLHVRQWKHSUDFWLFHVDWWKHORFDODXWKRULWLHVŇ DFWLRQVRQWKH+/3)UHYLHZŉWKH$JHQGDŊDQG OHYHO7KHUHIRUHEHVLGHV1HZ

&KDSWHU ӕ 'DWDDQG,QGLFDWRUVRI1HZ7DLSHL&LW\6'*V

&8QLWHG&LWLHVDQG/RFDO*RYHUQPHQWV 8&/*

8QLWHG&LWLHVDQG/RFDO*RYHUQPHQWV 8&/* LVD 7RHƈHFWLYHO\PRQLWRUWKHSURJUHVV1HZ7DLSHL&LW\Ň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ƈHUHQWLQWHUQDWLRQDO WKHLQWHUQDWLRQDOFRPPXQLW\ DUHQDVWRUHDOL]HWKH6'*VDQGRWKHUJOREDOJRDOV &KDSWHU

6RXUFH物8&/*

1HZ7DLSHL&LW\ 9ROXQWDU\/RFDO5HYLHZIRU6'*V

1HZ7DLSHL&LW\9/55HYLHZ&ULWHULD

Ŏ1HZ7DLSHL&LW\'DWD5HYLHZ0HWKRG*OREDO,QGLFDWRUV

,Q0DUFKWKHWKVHVVLRQRIWKH8QLWHG1DWLRQV6WDWLVWLFDO&RPPLVVLRQ 816& VHWXSWKH,QWHUDJHQF\DQG([SHUW*URXSRQ6'*,QGLFDWRUV ,$(*6'*V FRPSRVHGRI0HPEHU6WDWHVDQGLQFOXGLQJUHJLRQDODQGLQWHUQDWLRQDODJHQFLHVDV REVHUYHUV7KH,$(*6'*VDOVRFRQVXOWVZLWKDQGLQYLWHVWKHRWKHUVWDNHKROGHUV VXFKDVFLYLFVRFLHW\WKHDFDGHPLDDQGSULYDWHVHFWRUVWRDWWHQGPHHWLQJVDQG RIIHUVDGYLFH

3XUVXDQWWRWKHUHVROXWLRQDGRSWHGE\WKH81LQ-XQHWKH*HQHUDO$VVHPEO\ GHFLGHGWRUHDOL]HWKHRULJLQDO,QGLFDWRUVRIWKH6'*V7KHODWHVWYHUVLRQRI WKH,QGLFDWRUVZDVIRUPXODWHGE\WKH,$(*6'*V7RWUDFNWKHDQQXDOSURJUHVVRI &KDSWHU VWDWHVRQVXVWDLQDEOHGHYHORSPHQWWKH81ŇV$JHQGDVHHNVWRWUDFNYLDKXJH GDWDDQGWRXQYHLODQ\ODFNRUQHHGIURPWKHVWDWHVWKDWUHTXLUHVDVVLVWDQFH

7KHIRUPDWRIŉRSHQGDWDDQGLQIRUPDWLRQŊ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

&KDSWHU ӕ 'DWDDQG,QGLFDWRUVRI1HZ7DLSHL&LW\6'*V

Ŏ1HZ7DLSHL&LW\'DWD5HYLHZ0HWKRG1DWLRQDO,QGLFDWRUV

,QFRPSLOLQJWKH9ROXQWDU\1DWLRQDO5HYLHZWKH1DWLRQDO&RXQFLOIRU6XVWDLQDEOH GHYHORSPHQWRIWKH([HFXWLYH

7RVXSSO\FLWLHVLQ7DLZDQGDWDDQGVWDWLVWLFDOPHWKRGVWKDWDUHDFFXUDWHWLPHO\ WUDQVSDUHQWDQGHDVHWRXVH1HZ7DLSHL&LW\UHFRPPHQGVLQLWV9/5DQGVHUYHVDVWKH SLRQHHULQGLVFORVLQJWKHSURJUHVVRQWKH6'*V1HZ7DLSHL&LW\VKDOOHPSOR\

3XEOLF7UDQVSDUHQF\DQRSHQ6'*GDWDFHQWHUWRIDFLOLWDWHWKHH[SORUDWLRQDQDO\VLV DQGXVDJHRIWKHDXWKRULWDWLYH6'*GDWDVRXUFHVRDVWRPDNHHYLGHQFHEDVHG

&KDSWHU GHFLVLRQVDQGSURPRWLRQV

([FKDQJHDELOLW\IRUGDWDSURYLGHUVDGPLQLVWUDWRUVDQGXVHUVWRGLVFRYHU XQGHUVWDQGDQGH[FKDQJHRQWKHH[LVWLQJSOHWKRUDRI6'*GDWDDVZHOODVRQWKH LQWULFDWHGSRVVLELOLWLHVLQWKHVWDWLVWLFDOPRGHOV

)HDWXUHVEDVHGRQWKHGDWDRIFLW\RUVWDWHLQGLFDWRUVZLWKIHDWXUHVPD\EHXVHG DVPDUNHWLQJKLJKOLJKWVLQDFFRUGDQFHZLWKWKHORFDOSULRULWLHV

,QWHJUDWHG5HODWLRQVKLSFLWLHVDQGVWDWHVVKRXOGHVWDEOLVKWKHUHODWLRQVKLS RIWKHHIIHFWVRIDQ6'*RQWKHRWKHU6'*VZKLOHWDNLQJWKHVHDOWRJHWKHU LQWRFRQVLGHUDWLRQVRWKDWWKHVWDNHKROGHUVPD\FRPPXQLFDWHEDVHGRQ WKHGDWDDYDLODEOH

1HZ7DLSHL&LW\ 9ROXQWDU\/RFDO5HYLHZIRU6'*V

Ŏ1HZ7DLSHL&LW\&DVH5HYLHZ0HWKRGRORJ\6'*V7RROV

:LWKWKH6'*VDVWKHEDVLVIRUWKHFRPPRQODQJXDJHRQWKHFRPPXQLFDWLRQIRUJOREDO LGHDOOLIHWKLVPHWKRGRORJ\WKH6'*V7RROVDUHDLPLQJIRUHOHYDWLQJWKHJOREDO6' DZDUHQHVV%DVHGRQWKHH[SHULHQFHVRI6XVWDLQDEOH'HYHORSPHQW6ROXWLRQV1HWZRUN 6'61 RQWKH81ŇV6'*VVLQFH6'61FDPHXSZLWKDV\VWHPDWLFVWDQGDUGZLWK 6'*.H\ZRUGVDVWKHFULWHULDIRUUHOHYDQWGDWD

2QWKHEDVLVRIWKUHHWKHRULHVWKHVWHSVDQGSULQFLSOHVDUHGLYLGHGLQWRWKUHH VHFWLRQVDVIROORZV

6WHS6XEMHFW,GHQWLƉFDWLRQ 6,

7KHPHWKRGRORJ\IRUVXEMHFWLGHQWLILFDWLRQ 6, LVGHULYHGIURPGLDOHFWLFDOPHWKRG &KDSWHU 7KURXJKWKHUHYLHZSURFHVVHVRQWKHLVVXHSKHQRPHQRQJRDOUHDVRQDQGPHDVXUH LWFODULƉHVWKHGHƉQLWLRQRIDWDUJHWHGVXEMHFWDVROXWLRQLVLQWHQGHGIRUZKLOVWWKH RXWFRPHRISUDFWLFHDQGWKHWDUJHWLPSDFWHGIDFLOLWDWHWKHIRFXVRQWKHFRUH*RDO )LOOLQWKHEODQNVLQRQHVHQWHQFHŉ WKH6ROXWLRQ)XQFWLRQ WKDWLQFUHDVHVRUGHFUHDVHV 6LWXDWLRQ WRIRU :KHUH:KR ŊWRH[DPLQHWKH3UREOHP$ZDUHQHVVRIDVROXWLRQDQGWR HVWDEOLVKLWVEDVLVIRUHOHYDWLQJLWVJOREDOLPSDFW

6WHS,PSDFW2Q*RDOV ,2*

%DVHGRQWKHWRRODSSOLFDWLRQRI6'*.H\ZRUGVDQGSXUVXDQWWRWKHIRXUSULQFLSOHV &RPPRQ9HUVDWLOLW\&RQFLVLRQDQG3UHFLVLRQ ZLWKDVLQJOHZRUGSULPDULO\ 'LVWLQFWLRQ DQG/RFDO5HSUHVHQWDWLYHWKH/LVWRI.H\ZRUGVZDVFRPSLOHGIRUWKHXVHUVXQIDPLOLDUWR WKH6'*VWRSLFNRXWWKH.H\ZRUGVIURPWKH/LVWWRGHWHUPLQHWKHFRUH6'*WKDWKDVD GLUHFWLPSDFWRQVRDVWRIXUWKHUH[DPLQHWKHLPSDFWRQRWKHULVVXHVRIDVROXWLRQ

6WHS,PSDFW%HWZHHQ*RDOV ,%*

%DVHGRQWKH*RDOZLWKLPSDFWVHOHFWHGLQWKHSULRUVWHSWKHPDSSHG*RDORIDVROXWLRQ LVLQYHVWLJDWHGYLD,PSDFW%HWZHHQ*RDOV ,%* RQLWVSRVLWLYHDQGQHJDWLYHLPSDFWVRQWKH RWKHU*RDOVVRDVWRSODQWKHIROORZXSVWUDWHJLHVDQGSODQVWKDWDUHPRUHHƈHFWLYHO\LQ WKHDFKLHYHPHQWRIWKH$JHQGD7KHGDWDSHUWDLQLQJWR6'FROOHFWHGIURPVWDWHV WKURXJKWKH\HDUVE\WKH8QLWHG1DWLRQV6WDWLVWLFV'LYLVLRQZDVDQDO\]HGYLDŉ$6\VWHPDWLF 6WXG\RI6XVWDLQDEOH'HYHORSPHQW*RDO,QWHUDFWLRQVŊRI$*8RUJ

&KDSWHU ӕ 'DWDDQG,QGLFDWRUVRI1HZ7DLSHL&LW\6'*V

Ŏ1HZ7DLSHL&LW\'DWD5HYLHZ0HWKRG9DULDWLRQVDQG/LPLWDWLRQV

(YHUVLQFHWKHUHOHDVHRIWKH6XVWDLQDEOH'HYHORSPHQW*RDOVLQDOOVHFWRUV KDYHEHHQVHDUFKLQJIRUWKHPDSSLQJWRWKHPLVVLRQDQGIUDPHZRUNVRIWKH6'*V 1HYHUWKHOHVVDOORIWKHPIDLOWRHƈHFWLYHO\DYRLGRYHUWVXEMHFWLYLW\DQGDUHHTXLSSHGZLWK DSSOLFDWLRQVRIORFDOLQFOXVLYHQHVVZKLFKUHQGHUWKHIRFXVHG*RDOVDQGWKHIROORZLQJ VWUDWHJ\DGMXVWPHQWGLƋFXOWIRUDSSOLFDWLRQ7KHFDXVHVWRWKHYDULDWLRQVDQGOLPLWDWLRQV FDQIDOOLQWRWZRFDWHJRULHVDVIROORZV

&DWHJRU\,9DULDWLRQVZLWKLQWKH6'*V &KDSWHU 'LƈHUHQFHV&RQWH[WVRI/DQJXDJH&RQYHUVLRQ 7KHH[SUHVVHGPHDQLQJVFRQYHUWHGDPRQJODQJXDJHVKDYHJLYHQULVHWR WKHYDULDWLRQVLQWKH6'*GRPDLQ7KHFRPPRQODQJXDJHLQWKHVDPHILHOGV EHWZHHQ0DQGDULQ&KLQHVHDQG(QJOLVKDQGWKHPXWXDOFRPPXQLFDWLRQZLWK DFFXPXODWHGH[SHULHQFHVDUHHPSOR\HGIRUYDULDWLRQFRUUHFWLRQDSSO\LQJWKH H[SHULHQFHVRI6'617KHODQJXDJHIODZVRI0DQGDULQ&KLQHVHDGDSWLYLW\VKDOO H[LVWZKLFKUHTXLUHVWKHUHOHYDQWFRUUHFWLRQRIPHWKRGRORJ\WREHFRPSOHWHG DVVRRQDVSRVVLEOHLQWKHIXWXUH

$PELJXLW\RI.H\ZRUGV 7KHYDULRXVVHPDQWLFPHDQLQJVPDQLIHVWHGE\WKHVH.H\ZRUGVLQGLIIHUHQW6'*V \LHOGWKHUHVSHFWLYHYDULDWLRQVDVDUHVXOW$OVRWKHYRFDEXODU\FRYHUHGE\WKH UHVSHFWLYH6'*DUHYDULHGDVZHOODORQJZLWKVXEWRSLFDOH[WHQGHGUHODWLRQVKLSV HPEHGGHGLQWKH6'*VHVVHQWLDOO\7KXVFHUWDLQGHJUHHVRIYDULDWLRQVH[LVW LQHYLWDEO\DWVWRSORVVSRLQWV

1HZ7DLSHL&LW\ 9ROXQWDU\/RFDO5HYLHZIRU6'*V

&DWHJRU\,,9DULDWLRQVLQEHWZHHQWKH6'*V

'LƈHUHQFHVLQWKH([SHULHQFH$SSURSULDWHWRWKH/RFDO 7KHVDPHODQJXDJHDQGFXOWXUHPD\GLƈHULQORFDONQRZOHGJHFRQWH[WFXOWXUDOOLWHUDF\ HWFLQEHWZHHQUHJLRQV'XHWRORFDOYDULDWLRQVWKHDFKLHYHPHQWRIWKH6'*VPD\DƈHFW WKHPDSSLQJRXWFRPHLQGLFDWRULGHQWLƉFDWLRQDQGDVVHVVPHQWGLUHFWLRQRIWKHSURJUHVV ZKLFKSURGXFHGLƈHUHQWGHJUHHVRIYDULDWLRQVLQWKHRXWFRPHV

'LƈHUHQFHVLQWKH([WHQGHG$SSOLFDWLRQV 7KH9ROXQWDU\/RFDO5HYLHZVEDVHGRQWKHUHJXODWLRQVDQGSROLFLHVRIWKHUHVSHFWLYH VWDWHRUUHJLRQVFRPHXSZLWKGLIIHUHQWVWUDWHJLHVDQGFRQWHQWVRQLQWHUQDWLRQDO

ODQJXDJHZKLOHSURSRVHYDULRXVSRVVLELOLWLHVRIH[WHQGHGGHYHORSPHQWVIURPSODFH &KDSWHU WRSODFH+HQFHWKHPDSSLQJDQGFDWHJRUL]DWLRQPD\EHYDULHGGXHWRWKHH[WHQGHG DSSOLFDWLRQVRIWKH.H\ZRUGVRUWKH6'*VWRWKHORFDO

&KDSWHU ӕ 'DWDDQG,QGLFDWRUVRI1HZ7DLSHL&LW\6'*V

1HZ7DLSHL&LW\DQG6'*

6'*VDUHFORVHO\WLHGWRRXUOLYHVZKLOHORFDO 7KH6'*6XVWDLQDEOH&LWLHVDQG&RPPXQLWLHV0DNH JRYHUQPHQWVSOD\DFUXFLDOUROHLQWKH6'*V7KH81 FLWLHVDQGKXPDQVHWWOHPHQWVLQFOXVLYHVDIHUHVLOLHQW +DELWDWLVDQŉDSSRLQWHGŊDJHQF\WKDWDVVLVWFLWLHV DQGVXVWDLQDEOHLQFOXGHV7DUJHWVDQGOLQNVWRWKHUHVW UHFRPPHQGLQJFLWLHVWRWDNHDFORVHUHYLHZRQWKH6'* RIWKH6'*VRQYDULRXVOHYHOV+HUHZHSUHVHQWRXU DQGIRFXVRQWKHDVSHFWVRIFLW\DQGWKHHQYLURQPHQW UHVXOWVIXUWKHUZLWKLQGLFDWRUV +HQFH1HZ7DLSHL&LW\ZLOOWDNHWKLV6'*DVLWVIRFXV &KDSWHU

6'*物6XVWDLQDEOH&LWLHVDQG&RPPXQLWLHV 0DNHFLWLHVDQGKXPDQVHWWOHPHQWVLQFOXVLYH VDIHUHVLOLHQWDQGVXVWDLQDEOH

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Ň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

1HZ7DLSHL&LW\ 9ROXQWDU\/RFDO5HYLHZIRU6'*V

1HZ7DLSHL&LW\KDGOLVWHGRQHH[DPSOHIRU6'*DOLJQLQJ*OREDO1DWLRQDODQG&LW\LQGLFDWRUV

ӕ %\HQVXUHDFFHVVIRUDOOWRDGHTXDWHVDIHDQGDƈRUGDEOHKRXVLQJDQG EDVLFVHUYLFHVDQGXSJUDGHVOXPV

1XPEHURI$SSURYHG6XEVLG\+RXVHKROGVLQ1HZ7DLSHL&LW\

*OREDO,QGLFDWRUV牪1DWLRQDO,QGLFDWRUV牪1HZ7DLSHL&LW\,QGLFDWRUVY

7RDVVLVWKRXVHKROGVZLWKPLGWRORZLQFRPHVZLWKKRXVLQJLVVXHDQ\FLWL]HQRI WKH5HSXEOLFRI&KLQDWKDWLV\HDUROGRUDERYHDQGLVDWHQDQWRIKRXVLQJIRU HFRQRPLFDOO\RUVRFLDOO\GLVDGYDQWDJHGLVHOLJLEOHWRDSSO\IRUKRXVLQJVXEVLG\IURP 1HZ7DLSHL&LW\ KRXVLQJVXEVLG\ORDQLQWHUHVWVXEVLG\IRUKRXVHSURFXUHPHQWORDQ LQWHUHVWVXEVLG\IRUKRXVHUHQRYDWLRQHWF $SSOLFDWLRQVIURPKRXVHKROGVZHUH

DSSURYHGLQDQGDSSOLFDWLRQVIURPKRXVHKROGVZHUHDSSURYHGLQ &KDSWHU 1HYHUWKHOHVVZLWKULVLQJQXPEHURIDSSO\LQJKRXVHKROGVWKHUDWLRWKDWJRWDSSURYHG ZDVDOVRLQFUHDVHG

&KDSWHU ӕ 'DWDDQG,QGLFDWRUVRI1HZ7DLSHL&LW\6'*V

1HZ7DLSHL&LW\KDGOLVWHGRQHH[DPSOHIRU6'*DOLJQLQJ*OREDO1DWLRQDODQG&LW\LQGLFDWRUV

ӕ%\SURYLGHDFFHVVWRVDIHDƈRUGDEOHDFFHVVLEOHDQGVXVWDLQDEOHWUDQVSRUWV\VWHPVIRUDOOLPSURYLQJ URDGVDIHW\QRWDEO\E\H[SDQGLQJSXEOLFWUDQVSRUWZLWKVSHFLDODWWHQWLRQWRWKHQHHGVRIWKRVHLQYXOQHUDEOH VLWXDWLRQVZRPHQFKLOGUHQSHUVRQVZLWKGLVDELOLWLHVDQGROGHUSHUVRQV

5DWLRRI/RZ&KDVVLV%XV$PRQJ1HZ7DLSHL&LW\%XVHV

*OREDO,QGLFDWRUV牪1DWLRQDO,QGLFDWRUV牪1HZ7DLSHL&LW\,QGLFDWRUVY

,QOLJKWRIWKHDJLQJVRFLHW\1HZ7DLSHL&LW\FRQWLQXHVWRVXEVLGL]HPRWRUEXVFDUULHUV LQUHSODFLQJFLW\EXVHVZLWKORZƊRRUYHKLFOHVVRDVWRSURYLGHEXVVHUYLFHWRWKHVHQLRU DQGWKHSK\VLFDOO\PHQWDOO\FKDOOHQJHGSDVVHQJHUVDQGFUHDWHDQDFFHVVLEOHSXEOLF WUDQVSRUWDWLRQHQYLURQPHQW%\-XQHZHKDYHVPDOOUHFRYHU\EXVEXVHVDQG &KDSWHU SURYLGHGWLPHVIRUSHRSOHIURP-XQHRIWLOO0D\

7RDFFPPRGDWHWKHDJLQJSRSXODWLRQZHFRQWLQXHWRVXEVLGL]HWKHUHQHZDOQXPEHURI ORZƊRRUYHKLFOHVLQWKHFLW\7LOOHQGRI-XQHWKHUHDUHORZƊRRUEXVHVRQWKH URDGRXWRIWKHWRWDOQXPEHURIEXVHVIRUDJHGSRSXODWLRQDQGGLVDEOHGSDVVHQJHUV

1HZ7DLSHL&LW\ 9ROXQWDU\/RFDO5HYLHZIRU6'*V

1HZ7DLSHL&LW\KDGOLVWHGRQHH[DPSOHIRU6'*DOLJQLQJ*OREDO1DWLRQDODQG&LW\LQGLFDWRUV

ӕ%\HQKDQFHLQFOXVLYHDQGVXVWDLQDEOHXUEDQL]DWLRQDQGFDSDFLW\IRUSDUWLFLSDWRU\LQWHJUDWHGDQG VXVWDLQDEOHKXPDQVHWWOHPHQWSODQQLQJDQGPDQDJHPHQWLQDOOFRXQWULHV

3RSXODWLRQ$QG'HQVLW\RI8UEDQ$UHDLQ1HZ7DLSHL&LW\

*OREDO,QGLFDWRUV牪1DWLRQDO,QGLFDWRUV牪1HZ7DLSHL&LW\,QGLFDWRUVY

7KHSRSXODWLRQRI1HZ7DLSHL&LW\JURZVUDSLGO\$VRIWKHHQGRIWKHQXPEHURI WKHSRSXODWLRQLQWKHXUEDQSODQQLQJDUHDVZDVSHRSOHDQGWKHGHQVLW\RI ZKLFKZDVSHRSOHNP,QFRPSDULVRQWKHSRSXODWLRQLQWKHXUEDQSODQQLQJ DUHDVZDVSHRSOHZLWKDGHQVLW\RISHRSOHNP,WLVHYLGHQWWKDW WKHSRSXODWLRQGHQVLW\RI1HZ7DLSHL&LW\LVULVLQJ+HQFHWKHGHYHORSPHQWRIXUEDQ

SODQQLQJDQGWKHSURPRWLRQRIXUEDQL]HGEXLOGLQJEXONVVKRXOGEHHQJDJHGZLWKJRRG &KDSWHU FRPSOHPHQWDU\SODQVVRDVWRWDFNOHWKHQHHGVDULVLQJIURPWKHXUEDQGHYHORSPHQWDQG SRSXODWLRQJURZWKE\

&KDSWHU ӕ 'DWDDQG,QGLFDWRUVRI1HZ7DLSHL&LW\6'*V

1HZ7DLSHL&LW\KDGOLVWHGRQHH[DPSOHIRU6'*DOLJQLQJ*OREDO1DWLRQDODQG&LW\LQGLFDWRUV

ӕ6WUHQJWKHQHƈRUWVWRSURWHFWDQGVDIHJXDUGWKHZRUOGŇVFXOWXUDODQGQDWXUDOKHULWDJH

7RWDO1XPEHURI+LVWRULFDO%XLOGLQJVLQ1HZ7DLSHL&LW\

*OREDO,QGLFDWRUV牪1DWLRQDO,QGLFDWRUV牪1HZ7DLSHL&LW\,QGLFDWRUVY

7RSUHVHUYHFXOWXUDOKHULWDJH1HZ7DLSHL&LW\IRFXVHVRQWKHSURWHFWLRQRIWDQJLEOH FXOWXUDOKHULWDJHWKDWDUHGHVLJQDWHGRUUHJLVWHUHGIRUWKHUHVSHFWLYHFXOWXUDOYDOXHVLQ KLVWRU\DUWRUVFLHQFH7KHQXPEHURIKLVWRULFEXLOGLQJV SUHVHUYHGEXLOGLQJVDQGLWV DƋOLDWHGIDFLOLWLHVGHVLJQDWHGLQPHPRU\RIFHUWDLQKLVWRULFHYHQWRUZLWKKLVWRULFDO ORFDOXQLTXHFXOWXUDORUDUWYDOXHV LQZDV$VRIWKHUHDUHWRWDOO\ KLVWRULFEXLOGLQJVZKLFKLVDQHPERGLPHQWRI1HZ7DLSHL&LW\ŇVHƈRUWDQGFRQWULEXWLRQ

&KDSWHU WRWKHSUHVHUYDWLRQRIKLVWRULFPRQXPHQWVDQGDUWLIDFWV

1HZ7DLSHL&LW\ 9ROXQWDU\/RFDO5HYLHZIRU6'*V

1HZ7DLSHL&LW\KDGOLVWHGRQHH[DPSOHIRU6'*DOLJQLQJ*OREDO1DWLRQDODQG&LW\LQGLFDWRUV

ӕ%\VLJQLƉFDQWO\UHGXFHWKHQXPEHURIGHDWKVDQGWKHQXPEHURISHRSOHDƈHFWHGDQGVXEVWDQWLDOO\ GHFUHDVHWKHGLUHFWHFRQRPLFORVVHVUHODWLYHWRJOREDOJURVVGRPHVWLFSURGXFWE\\FDXVHGE\GLVDVWHUV LQFOXGLQJZDWHUUHODWHGGLVDVWHUVZLWKDIRFXVRQSURWHFWLQJWKHSRRUDQGSHRSOHLQYXOQHUDEOHVLWXDWLRQV

1XPEHURI)LUH3HU

*OREDO,QGLFDWRUV牪1DWLRQDO,QGLFDWRUV牪1HZ7DLSHL&LW\,QGLFDWRUVY

2ZLQJWRKLJKSRSXODWLRQGHQVLW\LQ1HZ7DLSHL&LW\EXLOGLQJVDUHJURZLQJODUJHULQ VFDOHXQLTXHLQDUFKLWHFWXUHDQGFRPSOH[LQIDFLOLWLHV:LWKWKHLPSURYHPHQWRIQDWLRQDO LQFRPHDQGOLYLQJVWDQGDUGVWKHOHLVXUHDQGHQWHUWDLQPHQWDUHGLYHUVLƉHGZLWKYHQXHVRI FRPSOLFDWHGQDWXUHLQFUHDVHG$FFRUGLQJWRWKHODWHVWVWDQGDUGVLQFHWKHUHZHUH &KDSWHU ƉUHLQFLGHQWVLQDQGLQFUHDVHGWRLQFLGHQWVLQ1HZ7DLSHL&LW\ *RYHUQPHQWLVXWLOL]LQJKXPDQLQWHOOLJHQFHWHFKQRORJ\DQGWHDPVRIH[SHUWVWRSUHYHQW LWVKDSSHQLQJRUUHGXFHWKHGDPDJHWKHUHRI

&KDSWHU ӕ 'DWDDQG,QGLFDWRUVRI1HZ7DLSHL&LW\6'*V

1HZ7DLSHL&LW\KDGOLVWHGRQHH[DPSOHIRU6'*DOLJQLQJ*OREDO1DWLRQDODQG&LW\LQGLFDWRUV

ӕ%\UHGXFHWKHDGYHUVHSHUFDSLWDHQYLURQPHQWDOLPSDFWRIFLWLHVLQFOXGLQJE\SD\LQJVSHFLDODWWHQWLRQ WRDLUTXDOLW\DQGPXQLFLSDODQGRWKHUZDVWHPDQDJHPHQW

3DUWLFXODWH0DWWHUOHVVWKDQPLFURPHWHUV 30 RI1HZ7DLSHL&LW\

*OREDO,QGLFDWRUV牪1DWLRQDO,QGLFDWRUV牪1HZ7DLSHL&LW\,QGLFDWRUVY

7RLPSURYHPHQWWKHDLUTXDOLW\ZLWKLQLWVMXULVGLFWLRQWKH'HSDUWPHQWRI(QYLURQPHQWDO 3URWHFWLRQRI1HZ7DLSHL&LW\KDVEHHQH[HFXWLQJSXEOLFSULYDWHSDUWQHUVKLSDQGIRU PRQLWRULQJDQGDOLJQLQJZLWKWKHVWDQGDUGVRIFHQWUDOJRYHUQPHQWWRGHFUHDVHWKHOHYHO RI30IURPĿJPLQWRZDUGĿJPLQZLWKWKHWDUJHWRI ORZHUWRĿJPE\HQGRI0RUHRYHUZHSODQWRLQYHVWLJDWHPRUHRQPRELOH &KDSWHU SROOXWHQWVƉ[DEOHSROOXWHQWVDQGGLVSHUVHGSROOXWHQWVWRZDUGYDULRXVLPSURYHPHQWDQG DLUTXDOLW\VDIHJXDUGLQJSROLF\ZLWKFURVVVHFWRUVWRUHGXFHWKHSROOXWHQUHOHDVHPHQW DQGWRPDLQWDLQWKHDLUTXDOLW\LQWKHFLW\

1HZ7DLSHL&LW\ 9ROXQWDU\/RFDO5HYLHZIRU6'*V

1HZ7DLSHL&LW\KDGOLVWHGRQHH[DPSOHIRU6'*DOLJQLQJ*OREDO1DWLRQDODQG&LW\LQGLFDWRUV

ӕ%\SURYLGHXQLYHUVDODFFHVVWRVDIHLQFOXVLYHDQGDFFHVVLEOHJUHHQDQGSXEOLFVSDFHVLQSDUWLFXODUIRU ZRPHQDQGFKLOGUHQROGHUSHUVRQVDQGSHUVRQVZLWKGLVDELOLWLHV

3URSRUWLRQRIWKH$YHUDJH3DUNVDQG*UHHQ6SDFHV3HU&LWL]HQLQ1HZ7DLSHL&LW\

*OREDO,QGLFDWRUV牪1DWLRQDO,QGLFDWRUV牪1HZ7DLSHL&LW\,QGLFDWRUVY

7KHUHDUHQHDUO\PLOOLRQFLWL]HQVOLYLQJLQ1HZ7DLSHL&LW\WRLPSURYHWKHTXDOLW\RI XUEDQOLYLQJHQYLURQPHQWDQGWRVROYHWKHLVVXHRILQVXƋFLHQWSXEOLFJUHHQVSDFHIRURXU FLWL]HQV1HZ7DLSHL&LW\SURSRVHGŉ*UHHQ+RPHODQGLQ1HZ7DLSHL&LW\ŊSURJUDPWKDW LQWHJUDWHGLQWHUGHSDUWPHQWUHVRXUFHVLQDQDWWHPSWWRXWLOL]HWKHLGOHGSXEOLFVSDFH LQGHQVHO\SRSXODWHGDUHDV:HSURDFWLYHO\SXVKHGIRUVLPSOHXUEDQDƈRUHVWDWLRQDQG

LQFUHDVHGWKHJUHHQVSDFHDYDLODEOHIRURXUFLWL]HQV &KDSWHU

$VRIWKHHQGRIWKHSXEOLFJUHHQVSDFHVH[SDQGHGLQXUEDQSODQQLQJDUHDVDUH KHFWDUHVZLWKKHFWDUHVRIKLJKULYHUVLGHSDUN(DFKFLWL]HQFDQHQMR\ PRISXEOLFJUHHQVSDFH)URPWR7KHŉ*UHHQ+RPHODQGŊSURJUDPKDV FRQGXFWHGFDVHVZLWKRYHUKHFWDUHVRIVLPSOHXUEDQDƈRUHVWDWLRQLQWRWDOWR LPSURYHWKHXUEDQODQGVFDSHDQGWKHHQYLURQPHQW

&KDSWHU ӕ 'DWDDQG,QGLFDWRUVRI1HZ7DLSHL&LW\6'*V

1HZ7DLSHL&LW\RQ*OREDO7UHQGRI6'*V &KDSWHU

6RXUFH物3DQ3DFLILF 6RXWKHDVW$VLD:RPHQ V$VVRFLDWLRQ,QWHUQDWLRQDO&RQIHUHQFH

7KH1HZ7DLSHL&LW\ŇV9/5IROORZVWKH+/3)IRFXVHG6'*V LQFOXGLQJ6'* 6'*6'*6'*6'*DQG6'* DQGWKHVWUHSRUWSXEOLVKHGE\ /RFDOL]DWLQJ6'*VDWWKH8&/*$QQXDO0HHWLQJ,Q0DGULG7KHLQVSHFWLRQ UHFRPPHQGHGFLWLHVWRUHYLHZ6'*6'*6'*DQG6'*DVORFDODQGUHJLRQDO JRYHUQPHQWWRLQWHUQDWLRQDOVRFLHW\IRULWV6'*VLPSOHPHQWDWLRQSURJUHVV

1HZ7DLSHL&LW\ 9ROXQWDU\/RFDO5HYLHZIRU6'*V

1HZ7DLSHL&LW\KDGOLVWHGRQHH[DPSOHIRU6'*DOLJQLQJ*OREDO1DWLRQDODQG&LW\LQGLFDWRUV

6'*4XDOLW\(GXFDWLRQ ӕ (QVXUHLQFOXVLYHDQGHTXLWDEOHTXDOLW\HGXFDWLRQDQG SURPRWHOLIHORQJOHDUQLQJRSSRUWXQLWLHVIRUDOO

1HZ7DLSHL&LW\*RYHUQPHQWFRQWLQXHVWRHQVXUHIDLUDQGTXDOLW\SULPDU\DQGVHFRQGDU\ HGXFDWLRQIRUDOODQGWRSURYLGHTXDOLW\HDUO\FKLOGKRRGGHYHORSPHQWWRLPSURYHWKH HPSOR\PHQWRI\RXQJSHRSOHDQGDGXOWVZLWKUHOHYDQWWHFKQLFDODQGYRFDWLRQDOVNLOOV ZKLOHHVWDEOLVKLQJDQGXSJUDGLQJWKHSURSRUWLRQRIHGXFDWLRQDOIDFLOLWLHVWRFUHDWH VXVWDLQDEOHGHYHORSPHQWRIHGXFDWLRQ

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

7HDFKHUVZLWK0DVWHU VGHJUHHLQSULPDU\VFKRRORI1HZ7DLSHL&LW\ *OREDO,QGLFDWRUV牪1DWLRQDO,QGLFDWRUV1HZ7DLSHL&LW\,QGLFDWRUV[

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ŇVHGXFDWLRQDODELOLW\

&KDSWHU ӕ 'DWDDQG,QGLFDWRUVRI1HZ7DLSHL&LW\6'*V

1HZ7DLSHL&LW\KDGOLVWHGRQHH[DPSOHIRU6'*DOLJQLQJ*OREDO1DWLRQDODQG&LW\LQGLFDWRUV

6'*&OHDQ:DWHUDQG6DQLWDWLRQ ӕ(QVXUHDYDLODELOLW\DQGVXVWDLQDEOHPDQDJHPHQWRIZDWHUDQGVDQLWDWLRQIRUDOO

1HZ7DLSHL&LW\KRSHVWRDFKLHYHIDLUDFFHVVWRVDIHDQGDƈRUGDEOHGULQNLQJZDWHULPSURYHG VDQLWDWLRQUHGXFHGSROOXWLRQLQFUHDVHGUHF\FOLQJDQGVDIHZDVWHLPSURYHGZDWHUHƋFLHQF\ DQGLQWHJUDWHGZDWHUPDQDJHPHQWWKURXJKSROLF\SUDFWLFHVZKLOHVWUHQJWKHQLQJORFDO FRPPXQLW\LQYROYHPHQWLQLPSURYLQJZDWHUDQGVDQLWDWLRQPDQDJHPHQW

1HZ7DLSHL&LW\DLPVWRSURYLGHVDIHGULQNLQJZDWHUDQGJRRGK\JLHQHSUDFWLFHVDQGFRQWLQXRXVO\ LPSURYHWKHEDVLFQHHGVRIWKHFRPPXQLW\1HZ7DLSHL&LW\FRPSUHKHQVLYHO\XSJUDGHVWKH LQIUDVWUXFWXUHIRUFRPPXQLW\VHZDJHVHZHUWUHDWPHQWLILWLVXQDEOHRUDFFHVVLEOHWRTXDOLW\ZDWHU VXSSO\,QDGGLWLRQWRLPSURYLQJWKHTXDOLW\RIZDWHUDQGLPSOHPHQWDWLRQ1HZ7DLSHL&LW\SODQV WRLPSOHPHQWVXVWDLQDEOHZDVWHPDQDJHPHQWSUDFWLFHVWRPHHWIXWXUHFKDOOHQJHVDQGDOVRXVHV WRROVWRDFKLHYHVXVWDLQDEOHZDWHUPDQDJHPHQW &KDSWHU

1RWMXVWHQVXULQJVXVWDLQDEOHZDWHUXVDJHDQGIUHVKZDWHUVXSSOLHVUHOHYDQWZDWHUPDQDJHPHQW SROLFLHVDQGLQLWLDWLYHVZLOODOVREHFRQVLGHUHGLQDGGLWLRQWRPHDVXUHVIRUZDVWHZDWHU PDQDJHPHQWUHF\FOLQJDQGUHXVLQJDUHLPSRUWDQWWRLPSURYHZDWHUHƋFLHQF\7KHRWKHUZD\ PDQDJLQJWKHFROOHFWLRQDQGWUHDWPHQWRIPXQLFLSDOZDVWHZDWHUDUHNH\IRU1HZ7DLSHL&LW\WR FRQWULEXWHWRQDWLRQDOLQGLFDWRUVWKURXJKHQYLURQPHQWDOVDQLWDWLRQDQGSXEOLFKHDOWK

5DWHRI5LYHUSROOXWLRQLPSURYHPHQWLQ1HZ7DLSHL&LW\ *OREDO,QGLFDWRUV牪1DWLRQDO,QGLFDWRUV牪1HZ7DLSHL&LW\,QGLFDWRUVY

$FFRUGLQJWRWKHVWDWLVWLFVRIWKH(QYLURQPHQWDO3URWHFWLRQ SROOXWLRQRQHVDERXWWKHPRGHUDWHSROOXWLRQRQHVIRU $JHQF\RIWKH([HFXWLYH

1HZ7DLSHL&LW\ 9ROXQWDU\/RFDO5HYLHZIRU6'*V

1HZ7DLSHL&LW\KDGOLVWHGRQHH[DPSOHIRU6'*DOLJQLQJ*OREDO1DWLRQDODQG&LW\LQGLFDWRUV

6'*$ƈRUGDEOHDQG&OHDQ(QHUJ\ ӕ(QVXUHDFFHVVWRDƈRUGDEOHUHOLDEOHVXVWDLQDEOHDQGPRGHUQHQHUJ\IRUDOO

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

6DYHG(OHFWULFLW\RI1HZ7DLSHL&LW\ V'HSDUWPHQW *OREDO,QGLFDWRUV牪1DWLRQDO,QGLFDWRUV牪1HZ7DLSHL&LW\,QGLFDWRUVY

&OLPDWHFKDQJHDQGJOREDOZDUPLQJLVVXHKDYHEHFRPH )URPWRWKH1HZ7DLSHL&LW\*RYHUQPHQW DQXUJHQWLVVXHLQWKHZRUOGDQGWKHLQWHUQDWLRQDO SURPRWHGWKHŉ*RYHUQPHQWDO,QVWLWXWLRQVDQG6FKRROV DJUHHPHQWIRUUHJXODWLQJFDUERQGLR[LGHHPLVVLRQV )RXU6DYLQJ3URMHFWŊIRUFRQWLQXRXV\HDUVDQG1HZ LQYDULRXVFRXQWULHV3DULV$JUHHPHQWKDVEHHQ 7DLSHL&LW\ZRQWKH$ZDUGIRU\HDUV,QWKHHQHUJ\ DGRSWHG,QRUGHUWRDFKLHYH7DLZDQ VFDUERQHPLVVLRQ VDYLQJSHUIRUPDQFHJXDUDQWHHSURMHFWWKH/(' FRPPLWPHQWFDUERQHPLVVLRQVLQFRPSDUHGWR HQHUJ\VDYLQJODPSVZHUHUHSODFHGDWRQFH,QWKHSDVW ZLWKDWDUJHWRIUHGXFWLRQ1HZ7DLSHL&LW\ \HDUVWKHUHSODFHPHQWKDVKHOSHGWRVDYH LQFRQMXQFWLRQZLWKWKH0LQLVWU\RI(FRQRPLF$IIDLUV N:KRIHOHFWULFLW\LQVFKRROVWRN:KRI SODQVWRSURPRWHWKH1HZ3RZHU6DYLQJ&DPSDLJQŊ HOHFWULFLW\LQVFKRROVLQMXQH7KHDJHQFLHV :LWKWKH*RYHUQPHQW/HDGV,QGXVWU\5HVSRQVHDQG DUHH[SHFWHGWRUHSODFHWKH/('ODPSVE\ +RXVLQJ %XVLQHVV$FWLRQWKHHQHUJ\VDYLQJZRUNZLOO EHJUDGXDOO\H[SDQGHGWRWKHSULYDWHVHFWRUWRDFKLHYH WKHSDUWLFLSDWLRQRIWKHJHQHUDOSXEOLFWRDFKLHYHRXU ORZFDUERQHQHUJ\WUDQVIRUPDWLRQ

&KDSWHU ӕ 'DWDDQG,QGLFDWRUVRI1HZ7DLSHL&LW\6'*V

1HZ7DLSHL&LW\KDGOLVWHGRQHH[DPSOHIRU6'*DOLJQLQJ*OREDO1DWLRQDODQG&LW\LQGLFDWRUV

6'*'HFHQW:RUNDQG(FRQRPLF*URZWK ӕ3URPRWHVXVWDLQHGLQFOXVLYHDQGVXVWDLQDEOHHFRQRPLFJURZWK IXOODQGSURGXFWLYHHPSOR\PHQWDQGGHFHQWZRUNIRUDOO

1HZ7DLSHL&LW\KDVSURPRWHGDQXPEHURI\RXWKLQQRYDWLRQSROLFLHVDQGKDVHVWDEOLVKHG VHYHUDOLQQRYDWLYHDQGHQWUHSUHQHXULDOEDVHVVXFKDVŉ,QQRVTXDUHŊŉ1HZ7DLSHL6RFLDO (QWHUSULVH(FRPPHUFH%DVHŊDQGŉ1HZ7DLSHL*DPLQJ%DVHŊDQGLQFRRSHUDWLRQZLWK $PD]RQIRUŉ1HZ7DLSHL$PD]RQ:HE6HUYLFHV 173&$:6 -RLQW,QQRYDWLRQ&HQWHUZH DOVRSURYLGHGDYDULHW\RIUHVRXUFHVVXFKDVƉHOGVSDFHLQVWUXFWRUFRXQVHOLQJSURIHVVLRQDO FRXUVHVLQGXVWU\QHWZRUNFDSLWDOFRRUGLQDWLRQDQGLQWHUQDWLRQDOFRPPXQLW\WRVXSSRUW EXVLQHVVJURZWKWUDQVIRUPDWLRQDQGXSJUDGLQJ

,QWKHIXWXUH1HZ7DLSHL&LW\ZLOOFRQWLQXHWRFUHDWHDIULHQGO\HQYLURQPHQWDVRQH

&KDSWHU VWRSVHUYLFHWRDVVLVWLQWKHGHYHORSPHQWRIQHZLQGXVWULHVDQGFUHDWHDFRPSUHKHQVLYH HFRV\VWHPRILQQRYDWLRQDQGHQWUHSUHQHXUVKLS7LOOWKHUHDUHWHDPVKDYHEHHQ FXOWLYDWHGHQWUHSUHQHXUVKLSFRXQVHOLQJDQGFRXUVHVKDYHEHHQSURYLGHGDQG FDVHVZLWKFRXQVHOLQJVHUYLFHV$URXQG17PLOOLRQKDVEHHQLQGXFHGDQGFRRSHUDWLRQ DJUHHPHQWVKDYHEHHQVLJQHGZLWKFRXQWULHVLQFOXGLQJWKH1HWKHUODQGVWKH3KLOLSSLQHVDQG -DSDQWRSURYLGHVKRUWWHUPRƋFHVSDFHDQGUHODWHGFRXQVHOLQJUHVRXUFHV

5DWHRI

$FFRUGLQJWRGDWDRIWKHUDWLRRIHPSOR\PHQWUDWH ZLWKLQ7KHUDWHRIODERUSDUWLFLSDWLRQDOVR IURPDJHGWRLQ1HZ7DLSHL&LW\ZDVDQG URVHIURPWRDQLQFUHDVHRILQ WKHUDWHRIODERUSDUWLFLSDWLRQZDVZKLFKVKRZHG DQXSZDUGWUHQGLQWKHQH[WWKUHH\HDUVLQGLFDWLQJWKDW :LWKWKHDERYHPHQWLRQHGYDULRXVGDWDWKH\RXWK WKHSKHQRPHQRQRIGHOD\LQJHPSOR\PHQWDPRQJ\RXQJ FRPPXQLW\KDVEHHQLQLWLDOO\LPSURYHGGXHWRDFDGHPLFV SHRSOHKDVLPSURYHG:LWKWKHSRSXODUL]DWLRQRIKLJKHU RWKHUIDFWRUVDQGQRWHQWHULQJWKHMREPDUNHW,W HGXFDWLRQWKHLQIOXHQFHRISHRSOH VHGXFDWLRQWLPHLV DOVRPHDQVWKDWZLWKWKHGLYHUVLILHGGHYHORSPHQWDQG SURORQJHGDQGWKHDJHRI\RXQJSHRSOHHQWHULQJWKH UDSLGFKDQJHVRIWKHIXWXUHMREPDUNHWPRUHDQG ODERUPDUNHWLVDOVRGHOD\HGEXWWKHDJHGLVWULEXWLRQ PRUH\RXQJSHRSOHZDQWWRJHWHPSOR\HGDVVRRQDV RIWKHHPSOR\HGSHRSOHLQ1HZ7DLSHL&LW\LVREVHUYHG SRVVLEOHWRDFFXPXODWHSUDFWLFDOH[SHULHQFHWRHQKDQFH ,QWKHQXPEHURIHPSOR\HGSHRSOHDJHG FRPSHWLWLYHQHVV,WLVQRWVLPSO\WRFRQWLQXHWRJRWR ZDV7KHRYHUDOOHPSOR\PHQWRIPLOOLRQ VFKRROWRH[WHQGWKHSHULRGRIVWXG\DQGWKHSXUVXLWRI DFFRXQWLQJIRU LQFUHDVHGE\FRPSDUHG KLJKHUHGXFDWLRQ

1HZ7DLSHL&LW\ 9ROXQWDU\/RFDO5HYLHZIRU6'*V

1HZ7DLSHL&LW\KDGOLVWHGRQHH[DPSOHIRU6'*DOLJQLQJ*OREDO1DWLRQDODQG&LW\LQGLFDWRUV

6'*5HGXFHG,QHTXDOLW\ ӕ 5HGXFHLQHTXDOLW\ZLWKLQDQGDPRQJFRXQWULHV

7KURXJKWKHJURZWKRISRSXODWLRQDQGLQFRPH1HZ7DLSHL&LW\KRSHVWRSURPRWHXUEDQ LQHTXDOLW\DFFHOHUDWHVRFLDOHFRQRPLFDQGSROLWLFDOLQFOXVLRQDQGHOLPLQDWHGLVFULPLQDWRU\ SROLFLHVWRSURPRWHSHRSOH VVDIHW\DQGDFFHSWLPPLJUDWLRQDQGRWKHUUHODWHGDZDUHQHVV

1HZ7DLSHL&LW\ZLOOLQFUHDVHWKHDPRXQWRISXEOLFFDUHWKURXJKWKHVFDOHRISXEOLFFDUH LQRUGHUWRLPSURYHWKHODFNRIVHUYLFHVDQGWKHODFNRIORFDOUHVRXUFHVLQYXOQHUDEOH DUHDV1HZ7DLSHL&LW\DOVRUHGXFHVXUEDQGLVFULPLQDWLRQODERUZDJHVDQGVRFLDO LQFOXVLRQWKURXJKHGXFDWLRQDZDUHQHVVDQGVRFLDOSURJUDPV7KHJRDORIDJOREDOFLW\ JRYHUQPHQWWRPDNHDOOFRPPXQLWLHVHTXDOO\DQGHTXLWDEOHDFFHVVWRSXEOLFVHUYLFHVDVD VWDQGDUGWRSURYLGHDOHYHOSOD\LQJƉHOGLQPRUHYXOQHUDEOHFRPPXQLWLHVDQGWRSURPRWH HTXDOLW\DQGIDLUQHVVLQFLWL]HQVKLS &KDSWHU

$YHUDJHUDWLRRIKRXVHKROGLQFRPHLQ1HZ7DLSHL&LW\ *OREDO,QGLFDWRUV牪1DWLRQDO,QGLFDWRUV牪1HZ7DLSHL&LW\LQGLFDWRUVY

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

&KDSWHU ӕ 'DWDDQG,QGLFDWRUVRI1HZ7DLSHL&LW\6'*V

1HZ7DLSHL&LW\KDGOLVWHGRQHH[DPSOHIRU6'*DOLJQLQJ*OREDO1DWLRQDODQG&LW\LQGLFDWRUV

6'*5HVSRQVLEOH&RQVXPSWLRQDQG3URGXFWLRQ ӕ(QVXUHVXVWDLQDEOHFRQVXPSWLRQDQGSURGXFWLRQSDWWHUQV

1HZ7DLSHL&LW\LPSOHPHQWVSROLFLHVWKDWHQFRXUDJHVXVWDLQDEOHFRQVXPSWLRQDQG SURGXFWLRQWKURXJKWKHEXLOGLQJHQYLURQPHQWVXSSO\FKDLQODQGPDQDJHPHQWHGXFDWLRQ DZDUHQHVVDQGPDUNHWHFRQRP\GHYHORSPHQW,WLVQDWLRQDOLQGXVWULDOGLUHFWLRQRQKRZ WRLPSOHPHQWWKHJUHHQIDFWRU\V\VWHPWRSURPRWHWKH&UDGOHWR&UDGOH && GHVLJQ FRQFHSWWRPDVWHUWKHH[LVWLQJPDWHULDOUHVRXUFHVDQGWRDSSO\WKHFRQFHSWRI&LUFXODU (FRQRP\

,QDGGLWLRQ1HZ7DLSHL&LW\KDVWUDQVIRUPHGWKHGHYHORSPHQWRIƉVKLQJSRUWVLQWRD ORFDOHFRQRP\WRKHOSFRPPXQLWLHVWUDQVLWVXVWDLQDEOHIRRGFRQVXPSWLRQDQGZDWHU UHVRXUFHVWRWKHLQWHJUDWLRQRIORFDOLQGXVWULHVFDWHULQJDQGWRXULVPLQGXVWULHV%\ FKDQJLQJZD\VRIWKLQNLQJEHKDYLRUVDQGSROLFLHVZHKDYHODUJHO\PLQLPL]HGWKHZDVWHRI &KDSWHU UHVRXUFHVDQGLQFUHDVHGWKHHƋFLHQF\DQGVXVWDLQDELOLW\)RUH[DPSOH1HZ7DLSHL&LW\ SOD\VDNH\UROHRQHQFRXUDJLQJVHDVRQDOFRQVXPSWLRQHDWLQJORFDOH[SDQGLQJRUJDQLF IDUPLQJSDUWQHUVKLSVDQGRWKHUUHODWHGPHDVXUHVWRDGMXVWDQGHQFRXUDJHVXVWDLQDEOH FRQVXPSWLRQFKRLFHV7KHUHE\FKDQJLQJKRXVHKROGFRQVXPSWLRQSDWWHUQVLVKDSSHQLQJ ,QWKHIXWXUHZHZLOODOVRSUDFWLFHVXVWDLQDEOHSURFXUHPHQWWROHDGRQEXVLQHVVUHODWHG FRQVXPSWLRQFKDQJH

0DWHULDO5HVRXUFHV5HF\FOLQJ5DWH *OREDO,QGLFDWRUV牪1DWLRQDO,QGLFDWRUV牪1HZ7DLSHL&LW\,QGLFDWRUV[

,QRUGHUWRSURPRWHWKHFURVVLQGXVWULDOFRRSHUDWLRQ 7KURXJKWKHUHF\FOHEDQNSROLF\SURPRWHGLQ1HZ HƈHFWLYHUHF\FOLQJRQLQWHJUDWHGHQHUJ\DQGUHVRXUFHV 7DLSHL&LW\HQFRXUDJHVSHRSOHWRSDUWLFLSDWHLQUHF\FOLQJ DQGWKHGHYHORSPHQWRIFLUFXODUHFRQRP\LQ7DLZDQ DFWLYLWLHVZLWKSURYLGLQJOLYLQJVXSSOLHVDVLQFHQWLYHV7LOO WKHPDWHULDOUHVRXUFHUHFRYHU\UDWLRKDVEHHQIXOO\ HQGRIVWDWLRQVKDVUHF\FOHGPHWULF IRFXVHGVLQFHWKHXSJUDGHRI1HZ7DLSHL&LW\$IWHU WRQVZLWKODUJHSRWHQWLDOWRJURZ(YHQQRZWKHUHDUH RYHUFRPLQJWKHJDSDQGRWKHUGLƋFXOWLHV1HZ7DLSHL RWKHUSROLFLHV UH%$*%OXH2FHDQ5HF\FOLQJWHDP FLW\JRYHUQPHQWKDVIRXQGWKHUHVRXUFHUHFRYHU\UDWH &LUFXODU&ODVVURRP1HZ7DLSHL8FXSQRSODVWLF MXPSHGIURPLQWRLQ VWRUHVŏHWF FRQWLQXLQJWKHHƈRUWVIRUZDUG ZKLFKKHOSHGPDWHULDOXVDJHRIWKHFLUFXODUHFRQRP\ LQFOXGLQJSDSHUPHWDOSODVWLFŏHWF

1HZ7DLSHL&LW\ 9ROXQWDU\/RFDO5HYLHZIRU6'*V

1HZ7DLSHL&LW\KDGOLVWHGRQHH[DPSOHIRU6'*DOLJQLQJ*OREDO1DWLRQDODQG&LW\LQGLFDWRUV

6'*&OLPDWH$FWLRQ ӕ 7DNHXUJHQWDFWLRQWRFRPEDWFOLPDWHFKDQJHDQGLWVLPSDFWV

1HZ7DLSHL&LW\LVYXOQHUDEOHWRFOLPDWHFKDQJHDQGH[WUHPHFOLPDWHUHODWHGKD]DUGVGXH WRLWVORFDWLRQ%\VHWWLQJXSDFOLPDWHFKDQJHFRPPLWWHHWRWDNHVWRFNRIHQHUJ\DQG FOLPDWHFKDQJHUHVSRQVHV1HZ7DLSHL&LW\ZLOOVWUHQJWKHQXUEDQPLWLJDWLRQDQGFRPPXQLW\ DGDSWDWLRQFDSDELOLWLHVWRUHGXFHWKHLPSDFWRIFOLPDWHFKDQJH,QFUHDVLQJDZDUHQHVVDQG LQVWLWXWLRQDOFDSDFLW\IRUHƈHFWLYHSODQQLQJDQGPDQDJHPHQWUHODWHGWRFOLPDWHFKDQJH

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

3HU&DSLWD(PLVVLRQVRI*UHHQKRXVH*DVLQ1HZ7DLSHL&LW\ *OREDO,QGLFDWRUV牪1DWLRQDO,QGLFDWRUV牪1HZ7DLSHL&LW\,QGLFDWRUVY

1HZ7DLSHL&LW\KDVSURPRWHGFOLPDWHFKDQJH IHOOIURPPHWULFWRQVRI&2HLQWR DGDSWDWLRQDQGPLWLJDWLRQIRUORQJDQGKDVEHFRPHDQ PHWULFWRQVRI&2H LQWHUQDWLRQDOO\UHFRJQL]HGORZFDUERQGHPRQVWUDWLRQ FLW\,WLVQRWRQO\WKHƉUVWFLW\LQ$VLDWRREWDLQWKHIXOO 7R$OLJQZLWKLQWHUQDWLRQDOVWDQGDUGVDQGLQUHVSRQVHWR WHUPEDGJHRIWKHŉ0D\RU$OOLDQFHŊWKHZRUOG VODUJHVW 1DWLRQDO*UHHQKRXVH*DV5HGXFWLRQDQG0DQDJHPHQW ƉJKWLQJFOLPDWHRUJDQL]DWLRQEXWDOVRWKHLQWHUQDWLRQDO /DZWKH1HZ7DLSHL&LW\5HYLHZ3KDVH,UHGXFWLRQ FDUERQ7KH&DUERQ'LVFORVXUH3URMHFW &'3 DOVRVHOHFW WDUJHWSURSRVHGDPRUHDPELWLRXVUHGXFWLRQWDUJHWDQG 1HZ7DLSHL&LW\DVRQHRIWKHWRSTXDOLW\FLWLHV HQFRXUDJHGLWVHOIZLWKWKHKLJKHUUHGXFWLRQVSHFLƉFDWLRQV LQWKHZRUOGLQ$FFRUGLQJWRWKHUHVXOWVRIWKH LQ3KDVH%\JUHHQKRXVHJDVHPLVVLRQVZLOOEH JUHHQKRXVHJDVLQYHQWRU\LQ1HZ7DLSHL&LW\WKH UHWXUQHGWROHYHOV,QQGSKDVHJUHHQKRXVHJDV JUHHQKRXVHJDVHPLVVLRQVLQZHUHPLOOLRQ HPLVVLRQVUHWXUQHGWROHYHOVE\PLQXV WRQVRI&2HZKLFKZDVORZHUWKDQWKH V PRUH,QWKHJUHHQKRXVHJDVHPLVVLRQVZLOOUHWXUQWR PLOOLRQWRQVRI&2H3HUFDSLWDHPLVVLRQVDOVR WKHOHYHORIZLWKUHGXFWLRQRIPRUH

&KDSWHU ӕ 'DWDDQG,QGLFDWRUVRI1HZ7DLSHL&LW\6'*V

1HZ7DLSHL&LW\KDGOLVWHGRQHH[DPSOHIRU6'*DOLJQLQJ*OREDO1DWLRQDODQG&LW\LQGLFDWRUV

6'*/LIHRQ/DQG ӕ3URWHFWUHVWRUHDQGSURPRWHVXVWDLQDEOHXVHRIWHUUHVWULDOHFRV\VWHPVVXVWDLQDEO\PDQDJH IRUHVWVFRPEDWGHVHUWLƉFDWLRQDQGKDOWDQGUHYHUVHODQGGHJUDGDWLRQDQGKDOWELRGLYHUVLW\ORVV

,QPDQ\DUHDVRI1HZ7DLSHL&LW\GXHWRWKHIUHTXHQWH[WUHPHZHDWKHUVXFKDVKHDY\ UDLQDQGGURXJKWLQUHFHQW\HDUVLUUHYHUVLEOHGDPDJHWRWKHKDELWDWKDVFDXVHGDVHULRXV FULVLVRIVXUYLYDO)RUWKLVUHDVRQWKHPDQDJHPHQWRIVXVWDLQDEOHFRQVHUYDWLRQKDV LQFOXGHGSURWHFWLQJQDWXUDOUHVRXUFHVDQGHFRFLW\SODQ(ƈHFWLYHO\VWRSSLQJELRGLYHUVLW\ ORVVDQGLQWHJUDWLQJHFRV\VWHPDQGELRGLYHUVLW\YDOXHVLQWRXUEDQDQGORFDOSODQV

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

5DWLRRI)RUHVW&RYHUDQG/DQG$UHDLQ1HZ7DLSHL&LW\ *OREDO,QGLFDWRUV牪1DWLRQDO,QGLFDWRUV牪1HZ7DLSHL&LW\,QGLFDWRUV[

$WWKHHQGRIWKHQRQXUEDQODQGDUHD RIWKH1HZ7DLSHL&LW\&LWL]HQVZDV KHFWDUHVDQGWKHIRUHVWDUHDZDVKHFWDUHV DFFRXQWLQJIRU)RUWKHYDULRXVW\SHVRI ODQGXVHKHFWDUHVRIIRUHVWU\ODQG ZKLOHWKHQRQXUEDQODQGDUHDLQZDV KHFWDUHVDQGWKHIRUHVWDUHDZDV KHFWDUHVDFFRXQWLQJIRU

1HZ7DLSHL&LW\ 9ROXQWDU\/RFDO5HYLHZIRU6'*V

1HZ7DLSHL&LW\KDGOLVWHGRQHH[DPSOHIRU6'*DOLJQLQJ*OREDO1DWLRQDODQG&LW\LQGLFDWRUV

6'*3HDFH-XVWLFHDQG6WURQJ,QVWLWXWLRQ ӕ3URPRWHSHDFHIXODQGLQFOXVLYHVRFLHWLHVIRUVXVWDLQDEOHGHYHORSPHQW SURYLGHDFFHVVWRMXVWLFHIRUDOODQGEXLOGHƈHFWLYHDFFRXQWDEOHDQG LQFOXVLYHLQVWLWXWLRQVDWDOOOHYHOV

1HZ7DLSHL&LW\VSDUHVDOOHIIRUWLQUHGXFLQJDOOIRUPVRIYLROHQFHE\HVWDEOLVKLQJ UHVSRQVLEOHDQGWUDQVSDUHQWPXQLFLSDOPHFKDQLVPVWRHQJDJHLQSDUWLFLSDWRU\DQG UHSUHVHQWDWLYHGHFLVLRQVDQGWRDVVLVWZLWKSXEOLFLQIRUPDWLRQDQGIXQGDPHQWDO IUHHGRPV$WWKHVDPHWLPH1HZ7DLSHL&LW\LVDOVRDGGUHVVLQJSROLFLHVLQWKHDUHD RIFRPPXQLW\YXOQHUDELOLW\DQGZRUNLQJWRDGGUHVVWKHVHLVVXHVWRUHGXFHYLROHQFH *RYHUQPHQWVOHDGE\H[DPSOHWRFXUEFRUUXSWLRQHQVXUHWUDQVSDUHQF\LQDOODUHDVRI ZRUNLQFUHDVHSXEOLFDFFHVVWRLQIRUPDWLRQDQGLPSURYHSDUWLFLSDWLRQLQGHFLVLRQ PDNLQJSURFHVVHV &KDSWHU

1XPEHURIYLROHQWFULPHVLQ1HZ7DLSHL&LW\ *OREDO,QGLFDWRUV牪1DWLRQDO,QGLFDWRUV牪1HZ7DLSHL&LW\,QGLFDWRUVY

,QWKHSDVW\HDUV WR WKHQXPEHU RIFUDFNLQJLQ1HZ7DLSHL&LW\KDVLQFUHDVHGIURP RIYLROHQWFULPHVSHUWKRXVDQGVSHRSOHLQ1HZ LQWRLQDVLJQLILFDQW 7DLSHL&LW\ DOVRNQRZQDVWKHLQFLGHQFHRIYLROHQW LQFUHDVHRISHUFHQWDJHSRLQWV$FFRUGLQJWR FULPHV RFFXUUHGIURPSHUWKRXVDQGV WKH0LQLVWU\RIWKH,QWHULRU VVXUYH\RQWKHVWDWHRI SHRSOHLQGHFOLQLQJ\HDUE\\HDUSHU OLIHRIWKHSHRSOHWKHVDWLVIDFWLRQRIWKHUHVLGHQWV WKRXVDQGVSHRSOHLQ7KHQXPEHURI OLYLQJLQ1HZ7DLSHL&LW\KDVLQFUHDVHGIURP YLROHQWFULPHVKDVLQFUHDVHGE\SHU LQWRLQDQLQFUHDVHRI WKRXVDQGVSHRSOH,QWKHSDVW\HDUVWKHUDWH SHUFHQWDJH

&KDSWHU ӕ 'DWDDQG,QGLFDWRUVRI1HZ7DLSHL&LW\6'*V

1HZ7DLSHL&LW\KDGOLVWHGRQHH[DPSOHIRU6'*DOLJQLQJ*OREDO1DWLRQDODQG&LW\LQGLFDWRUV

6'*3DUWQHUVKLSIRU*RDOV ӕ6WUHQJWKHQWKHPHDQVRILPSOHPHQWDWLRQDQGUHYLWDOL]HWKHJOREDO SDUWQHUVKLSIRUVXVWDLQDEOHGHYHORSPHQW

1HZ7DLSHL&LW\KDVDOZD\VFRQVLGHUHGWKDWLWZLOOVWUHQJWKHQWKHNH\UROHRIJOREDO SDUWQHUVKLSVWRSURPRWHWKHFRKHUHQFHEHWZHHQSROLF\REMHFWLYHVDQGPXQLFLSDO SODQVZLWKWKHWZRVWUDWHJLHVRIŉSURPRWLQJFRRSHUDWLRQDQGJHQHUDWLQJUHYHQXHŊ$W WKHVDPHWLPHLWKDVSOD\HGDOHDGLQJUROHLQWKHŉVPDUWFLW\ŊDQGŉOLYDEOHFLW\ŊRI WKHLQWHUQDWLRQDOFRPPXQLW\IRUDORQJWLPH,WKDVFRQWULEXWHGWR7DLZDQ VLQQRYDWLYH DQGLQWHOOLJHQWWHFKQRORJ\LQJOREDOSDUWQHUVKLSVDQGKDVFRQWLQXHGWRH[SDQGDQG LPSURYHWKHGLVFXVVLRQRIFLWL]HQSDUWLFLSDWLRQSROLFLHV&UHDWHDEHWWHUOLIHYLVLRQIRU WKHORFDOFRPPXQLW\ &KDSWHU

3DUWLFLSDWLRQ5DWHRI1HZ7DLSHL&LW\

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

1HZ7DLSHL&LW\ 9ROXQWDU\/RFDO5HYLHZIRU6'*V &KDSWHU

&KDSWHU ӕ 'DWDDQG,QGLFDWRUVRI1HZ7DLSHL&LW\6'*V

1HZ7DLSHL&LW\DQG*OREDO*RDOV &KDSWHU

6RXUFH物1HZ7DLSHL&LW\6SRUWV&HQWHU

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ŇVSHUVSHFWLYH

1HZ7DLSHL&LW\ 9ROXQWDU\/RFDO5HYLHZIRU6'*V

6'* 1R3RYHUW\ &KDSWHU

1HZ7DLSHL&LW\LVWKHODUJHVWFLW\LQ7DLZDQEXWZHEHOLHYHWKDWFLWLHVPXVWVWLOOSOD\ DNH\UROHLQWDFNOLQJSRYHUW\FKDOOHQJHVIURPFUHDWLQJLQQRYDWLYHPXOWLGLPHQVLRQV WRG\QDPLFDSSURDFKHVIRULQQRYDWLYHVROXWLRQV3RYHUW\LVDORFDOLVVXHWKDWUHTXLUHV ORFDOVROXWLRQV7KHQXPEHURIORZLQFRPHKRXVHKROGVLQ1HZ7DLSHL&LW\KDV LQFUHDVHGIURP SHRSOH LQWR SHRSOH LQWKHƉUVW TXDUWHURI,WLVLPSRUWDQWWRNQRZKRZSRYHUW\LQWKHUHJLRQLWVGULYLQJIRUFHV DQGWKHQHHGVRIFRPPXQLWLHV

1HZ7DLSHL&LW\KDVEHHQDVVLVWLQJYXOQHUDEOHDQGSRRUJURXSVDQGSURYLGLQJQHHGHG UHVRXUFHVDIWHUFRQƉUPDWLRQ%DVHGRQEDVLFOLYLQJVHUYLFHVLQWKHVRFLDOKRXVLQJWKH FLW\SODQWRUHOHDVHWKHSXEOLFZHOIDUHVSDFHDORQJWKH057URXWHVDQGUHGXFHIDFWRUV FDXVLQJXUEDQSRYHUW\$IWHUHQVXULQJ1HZ7DLSHL&LW\UHVLGHQWVDQGFRPPXQLWLHV KDYHWKHFDSDELOLW\WRSUHYHQWSUHGLFWDQGDGDSWWRDYDULHW\RIVKRFNVULVNVDQG XQFHUWDLQWLHV1HZ7DLSHL&LW\JRYHUQPHQWHPSKDVL]HVUHQWDOVXEVLGLHVƉVFDOVWDWXV DQGSRYHUW\UHODWHGSROLFLHVWREULQJH[SDQGWKHEHQHƉWVDQGLPSDFW

&KDSWHU ӕ 'DWDDQG,QGLFDWRUVRI1HZ7DLSHL&LW\6'*V

6'* =HUR+XQJHU &KDSWHU

7KHGLYHUVLW\RIWRZQVKLSVLQ1HZ7DLSHL&LW\KDVPDGHXUEDQDQGIDUPVDPRQJXUEDQ DUHDVEHFRPHDNH\GHFLVLRQPDNHULQWKHSXUVXLWRIIRRGVHFXULW\DQGVXVWDLQDEOH DJULFXOWXUDOSUDFWLFHV7KURXJKWKHVFKRRO VQXWULWLRXVOXQFKDQGHGXFDWLRQDOSURJUDP 1HZ7DLSHL&LW\SRSXODUL]HVOXQFKVRWKDWDOOVWXGHQWVFDQHQMR\WKHIRRGSHDFHIXOO\ DQGVDIHO\:LWKWKHFRQWLQXRXVJURZLQJSRSXODWLRQDQGLQFUHDVLQJXUEDQL]DWLRQRI 1HZ7DLSHL&LW\WKHSURSRUWLRQRIFXOWLYDWHGODQGDUHDGHFUHDVHGIURPLQ WRLQ,WLVNH\LVVXHWRNQRZKRZWRHOHYDWHRUJDQLFDJULFXOWXUDO SDWKZD\DQGHƈHFWLYHO\XWLOL]HVXVWDLQDEOHGHYHORSPHQWSUDFWLFHLQUXUDODQGXUEDQ DUHDVZKLFKOLQNVZLWKDJULFXOWXUDOSUDFWLFHVWKDWEHFRPHNH\LVVXHVWRLPSOHPHQW IRRGVHFXULW\IRUKHDOWK\SRSXODWLRQ

1HZ7DLSHL&LW\KDVHVWDEOLVKHGŉ)RRG6KDULQJ1HWZRUNŊWRLPSOHPHQWWKHUHGXFWLRQ RIIRRGZDVWHDQGWRVXSSRUWIRRGWUDQVSRUWDWLRQDQGWKHUHXVHRIFRPPXQLW\ UHVRXUFHVWKH$JULFXOWXUH%XUHDXKDVFRRSHUDWHGZLWKWKHSURPRWLRQRIWKHVSHFLDO IUXLWVDQGYHJHWDEOHVIURPSURGXFWLRQDUHDWRWKHUHVWDXUDQWDQGHQFRXUDJHG FRPSDQLHVWRVHOOWKHJRRGVWRWKHXQGHUZULWHUVWRRXUFLW\ŇVVKDULQJPHDOKXEV

1HZ7DLSHL&LW\ 9ROXQWDU\/RFDO5HYLHZIRU6'*V

6'* *RRG+HDOWKDQG:HOO%HLQJ &KDSWHU

1HZ7DLSHL&LW\LVFRPPLWWHGWRUHGXFHPDWHUQDOPRUWDOLW\DQGHQGLQJSUHYHQWDEOH GHDWKVIRUQHZERUQDQGFKLOGUHQXQGHUƉYHDVZHOODVRWKHUWDVNVVXFKDVHQGLQJ $,'6WXEHUFXORVLVPDODULDDQGZDWHUERUQHGLVHDVHV:HKRSHWRUHGXFHGHDWKV DQGLQMXULHVIURPURDGWUDƋFDFFLGHQWVIRUXQLYHUVDODFFHVVWRKHDOWKVHUYLFHVDQG WRUHGXFHGHDWKVDQGGLVHDVHFDXVHGE\DOOSROOXWLRQLQFOXGLQJDLUZDWHUDQGVRLO SROOXWLRQ

1HZ7DLSHL&LW\VXSSRUWVWKHVXVSHQVLRQRIWKH6KHQ$R&RDO3RZHU3ODQWYLDWKH DQWLDLUSROOXWLRQSROLF\7KURXJKWKHDLUTXDOLW\UDWHZHFDQNQRZZKHWKHUWKHSXEOLF KDVFOHDQDLUZLWKVDIHVWDQGDUGV$LU3ROOXWLRQ,QGH[36,OHVVWKDQ 3ROOXWDQW 6WDQGDUGV,QGH[ RI1HZ7DLSHL&LW\LVLQZKLFKLQFUHDVHGWR LQ:LWKPRQLWRULQJSROOXWLRQKHDOWKVHUYLFHGHOLYHU\PHGLFDOVXSSRUWUHTXLUHGE\ WKHFRPPXQLW\PHGLFDOSUHYHQWLRQDFWLYLWLHVKHDOWK\DLUGULQNLQJZDWHUDQGRUJDQLF IRRGWKDWWKHSHRSOHEUHDWKHKDYHDQLQWHJUDWHGLPSURYHPHQW

&KDSWHU ӕ 'DWDDQG,QGLFDWRUVRI1HZ7DLSHL&LW\6'*V

6'* *HQGHU(TXDOLW\ &KDSWHU

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

:LWKWKHYLVLRQRIŉJHQGHUHTXDOLW\IRUDEHWWHUOLIHŊ1HZ7DLSHL&LW\KDVVHWWKHPDLQ D[LVRIJRYHUQDQFHWRSURPRWHJHQGHUHTXDOLW\\HDUE\\HDULQFOXGLQJDV\HDURI 1HZ7DLSHLJHQGHUHTXDOLW\IRUƉUVWFODVVDJHQFLHVWRSURPRWHJHQGHUHTXDOLW\EULJKWHU SURJUDPDVJHQGHUHTXDOLW\LPSURYLQJ\HDUWRLQFOXGHIXOOSDUWLFLSDWLRQRIGLVWULFW RƋFHVDVJHQGHUHTXDOLW\OLYLQJ\HDUWRGHHSO\HQJDJHZLWKQHLJKERUKRRGRIWKH FRPPXQLW\DQGLQWHJUDWHWKHFRQFHSWRIJHQGHUHTXDOLW\LQWRWKHGDLO\OLIHRIWKHFLWL]HQV 7KLVZLOOSURPRWHWKHFKDQJHRIFLWL]HQV WKLQNLQJDQGFUHDWHDVRFLDOHQYLURQPHQWIRU JHQGHUHTXDOLW\DQGWKHSURWHFWLRQRIKXPDQULJKWV

1HZ7DLSHL&LW\ 9ROXQWDU\/RFDO5HYLHZIRU6'*V

6'* ,QGXVWU\,QQRYDWLRQ DQG,QIUDVWUXFWXUH &KDSWHU

1HZ7DLSHL&LW\XUJHVJRYHUQPHQWVWRFRQWLQXHWROHDGQDWLRQDOGHYHORSPHQWRQ VXVWDLQDELOLW\UHVLOLHQWLQIUDVWUXFWXUHIRUDOOSHRSOHWRDIIRUGDQGDFFHVVWKHVHEDVLF WUDQVSRUWDWLRQSURMHFWV,WŇVLPSRUWDQWQRWRQO\WDNLQJWKHLQLWLDWLYHEXWDOVRSURPRWLQJWKH LQIUDVWUXFWXUHRIWKHŉ7KUHH5LQJVDQG6L[/LQHVŊ7KHDYHUDJHJURZWKUDWHRIWKHSXEOLF WUDQVSRUWDWLRQV\VWHPKDVLQFUHDVHGIURPLQWRLQ$JRRG057 DQGWUDQVSRUWDWLRQSODQQLQJDQGXUEDQUHQHZDOSROLF\ZLOOHQDEOH1HZ7DLSHL&LW\WROLQN WKHFLW\FHQWHUZLWKWKHRXWVNLUWDUHD7KHWUDƋFLQIUDVWUXFWXUHZLOOQRWRQO\FUHDWHWKH FRUHRIWKH057OLYLQJDUHDEXWDOVRVXSSRUWWKHGLYHUVLƉHGGHYHORSPHQWRIEXVLQHVV

1HZ7DLSHL&LW\ZLOODOVRKHOSWREULGJHWKLVJDSE\SURYLGLQJDFRQQHFWHGSXEOLFVSDFH VXFKDVOLEUDU\RUVFKRRO ZLWKVPDUWFLW\LQWHUQHWDQG,&7WRSURPRWHRWKHUSHULSKHUDO HƈHFWVEURXJKWE\LWVJURZWKDQGGHYHORSPHQW,ILWFDQEULQJJRRGHFRQRPLFUHVXOWVZH VKDOOVXSSRUWPRUHFLWL]HQVWRJHWJRRGVDQGVHUYLFHV

&KDSWHU ӕ 'DWDDQG,QGLFDWRUVRI1HZ7DLSHL&LW\6'*V

6'* /LIH%HORZ:DWHU &KDSWHU

1HZ7DLSHL&LW\FRQWLQXHVWRSURPRWHWKHUHGXFWLRQRIPDULQHSROOXWLRQVXVWDLQDEOH PDULQHPDQDJHPHQWDQGWKHSURWHFWLRQRIPDULQHDQGFRDVWDOHFRV\VWHPV7KURXJK WKHSDWUROOLQJRIPDULQHUHVRXUFHVPDULQHUHVRXUFHVDURXQGWKHFLW\DUHSURWHFWHG 1HZ7DLSHL&LW\KDVDOVRLQQRYDWHGDQGSURPRWHGWKHŉ%OXH2FHDQ)OHHWŊWRHQFRXUDJH WKHSULYDWHVHFWRUWRMRLQWKHPDULQHSROOXWLRQFOHDQXSWDVNVDQGWRSURPRWHPDULQH UHVRXUFHFRQVHUYDWLRQ,QDGGLWLRQWRWKHPDULQHSURWHFWHGDUHDVDQGFRQVHUYDWLRQ DUHDVWKHSDWUROZRUNRIWKHVHDDUHDZDVDOVRKDQGOHGDQGWKHVHDSDWURODXWKRULWLHV ZHUHUHTXHVWHGWRVWUHQJWKHQWKHLQYHVWLJDWLRQRILOOHJDOƉVKLQJDFWLYLWLHVIURP FDVHVLQWRFDVHVLQWRPDLQWDLQWKHVXVWDLQDEOHPDULQHUHVRXUFHV

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

1HZ7DLSHL&LW\ 9ROXQWDU\/RFDO5HYLHZIRU6'*V &KDSWHU

6RXUFH物1HZ7DLSHL&LW\DQGLQGRQHVLDQ:HVW-DYD6PDUW&LW\&RRSHUDWLRQ

/LNHPDQ\LQWHUQDWLRQDOFLWLHV1HZ7DLSHL&LW\ZLOOQHHGFLYLOVRFLHW\RUJDQL]DWLRQV EXVLQHVVXQLWVDFDGHPLFLQVWLWXWLRQVDQGLQWHUQDWLRQDORUJDQL]DWLRQVWRIRUPD VXVWDLQDEOHGHYHORSPHQWVWUDWHJ\DOOLDQFHDFURVVERUGHUVDQGWRVKDUHPDQ\ RSSRUWXQLWLHVDQGFKDOOHQJHVWKDWKDYHQRW\HWEHHQLQWHJUDWHGLQWR6'*VZRUN &RPPXQLFDWHWRDFFHOHUDWHWKHWLPHO\LQWHJUDWLRQRIUHVRXUFHVDQGVWDNHKROGHUVVROYH LQWHUUHODWHGDQGFURVVFXWWLQJLVVXHVDQGWU\WRH[SDQGWKHVFDOHRIFRRSHUDWLRQDW KRPHDQGLQWHUQDWLRQDOO\ZLWKLQQRYDWLYHVROXWLRQV

&KDSWHU 1HZ7DLSHL&LW\6ROXWLRQV RQ6'*V

1HZ7DLSHL&LW\ 6ROXWLRQVRQ6'*V

1HZ7DLSHL&LW\ 7KHPDWLF'HYHORSPHQW

1HZ7DLSHL&LW\&DVH6WXGLHV

&KDSWHU ӕ 1HZ7DLSHL&LW\6ROXWLRQVRQ6'*V

1HZ7DLSHL&LW\6ROXWLRQVRQ6'*V

6RXUFH物WK,)2$0$VLD2UJDQLF

&KDSWHU 1HZ7DLSHL&LW\9/5LVWKHIRXQGDWLRQIRUFLW\FRRSHUDWLRQDQGFRPPXQLFDWLRQV,WXVHV 6'*V7RROVWRLOOXVWUDWHXUEDQVROXWLRQV7KURXJK6'*VVROXWLRQVSUDFWLFHGLQFLW\LWLV VKDUHGDVDFLW\NQRZOHGJHDQGH[SHULHQFHWRIDFLOLWDWHLQWHUQDWLRQDOFRRSHUDWLRQDQG H[FKDQJH7KURXJKUHVHDUFKDQGDQDO\VLVRIWKH1HZ7DLSHL&LW\3ODQLQ3UDFWLFH&LW\ JRYHUQPHQWZLOORSHQXSRSSRUWXQLWLHVIRUH[FKDQJHVEHWZHHQFLWLHVDQGSURPRWHWKH LPSOHPHQWDWLRQRIWKH6XVWDLQDEOH'HYHORSPHQW$JHQGDORFDOO\

1HZ7DLSHL&LW\ 9ROXQWDU\/RFDO5HYLHZIRU6'*V

1HZ7DLSHL&LW\9/56ROXWLRQVRQ6'*VWRHYRNHVWDNHKROGHUVGLVFXVVLRQV

1HZ7DLSHL&LW\KDVORWVRIVROXWLRQVUHODWHGWR6'*VGXHWROLPLWHGSDJHVQDWLRQDO LQGLFDWRUVIUDPHZRUNDQGJOREDOSULRULWLHVLQWKDWZHFRXOGQ WLQFOXGHHYHU\RQHRI WKHPEXWZHKDYHVHOHFWHGWKHODWHVWGHYHORSPHQWIURPWKHORFDOFRPPXQLW\DQGKDYH RWKHURQOLQHSODWIRUPWRGHPRQVWUDWHIXUWKHUWRHQJDJHFURVVVHFWRUGLVFXVVLRQWR HQGRUVHPRUHRWKHUFDVHVWXGLHVDPRQJFLYLOVRFLHW\DQGWRPHHWWKHOHDYLQJQRRQH EHKLQGVSLULVWRIVXVWDLQDEOHGHYOHRSPHQW

1HZ7DLSHL&LW\9/5VROXWLRQVDUHVHOHFWHGIRU6'*V

1HZ7DLSHL&LW\FRQWLQXHVWKHVSLULWRIWKH816XVWDLQDEOH'HYHORSPHQW*RDOV .QRZOHGJH3ODWIRUPDQGWKH*OREDO2SSRUWXQLW\)UDPHZRUN 81*OREDO&RPSDFW *OREDO2SSRUWXQLW\([SORUDWLRQ3ODWIRUPDQGVHOHFWV6'*VIRUXUEDQFDVHVWXGLHV DV6'*V.QRZOHGJH6KDULQJDQG,QWHUFLW\RSSRUWXQLW\IRUFRRSHUDWLRQWRSURPRWHORFDO DFWLRQ

6'*VDUHLQWHUUHODWHGWRHDFKRWKHU &KDSWHU

6'*VDUHGLYLGHGLQWRLQGHSHQGHQWJRDOV+RZHYHUWKHJRDOVWKHPVHOYHVDUH FORVHO\LQWHUUHODWHGWRHDFKRWKHUDQGFRQVWLWXWHGDQLQVHSDUDEOHIUDPHZRUN)URP WKHSHUVSHFWLYHRIV\VWHPLFWKLQNLQJ1HZ7DLSHL&LW\VROXWLRQVZLOODOVRKDYHRYHUDOO VXVWDLQDELOLW\:LWKWKH6'*V7RROVZHLGHQWLƉHVWKHFRUH6'* DVWKHSULPDU\FRQFHUQ DVDEDVLVIRUSURPRWLQJFRRSHUDWLRQEHWZHHQFLWLHVDQGFLWLHV

3UDFWLFDOVROXWLRQVLQFOXGHVFRUUHODWHGUHOHYDQWPHDQLQJV

7KHFRQWULEXWLRQRI1HZ7DLSHL&LW\WRDVVLVWPXOWLVWDNHKROGHUVWRVWUHQJWKHQWKH 816XVWDLQDEOH'HYHORSPHQW*RDOV 6'*V :LWK6'*V7RROVZHDVVLVWWKHFDVH WROHDUQDERXWWKHSRVLWLYHFRUUHODWLRQ 6\QHUJ\ DQGQHJDWLYHFRUUHODWLRQ 7UDGH 2II DVVHVVPHQWZLWKRWKHU6'*VWRXQGHUVWDQGRSSRUWXQLWLHVWRFROODERUDWHDQG FKDOOHQJHVIRUFRUUHODWLRQ,QRWKHUZRUGVDFKLHYHDJRDORUJRDOVPD\KHOSDFKLHYH RWKHUJRDOVRUVXEJRDOV

&KDSWHU ӕ 1HZ7DLSHL&LW\6ROXWLRQVRQ6'*V

1HZ7DLSHL&LW\7KHPDWLF'HYHORSPHQW

1HZ7DLSHL&LW\XVHGWRHPSOR\IHDWXUHVWRGHPRQVWUDWHWKHFLW\ŇVSRVLWLRQLQJDQGWKH YLVLRQIRUTXDOLW\RIOLIHDQGGHFHQWZRUN7KHLQGLYLGXDOIHDWXUHVLH+HDOWK\&LW\ 5HVLOLHQW&LW\6PDUW&LW\DQG/LYDEOH&LW\DUHWREHPDSSHGWRWKHUHVSHFWLYH6'*V $JOREDOFLW\VKRXOGKDYHGLƈHUHQWXUEDQIHDWXUHVFRQWULEXWLQJWRWKH6'*V1HZ7DLSHL &LW\SULGHVLWVHOIDVWKHPRVWSRSXODWHGFLW\LQ7DLZDQWKDWVKDOOSOD\LWVUROHZHOOZLWK WKHVWDWXVDQGGLUHFWLRQWRZDUGDŉ/LYDEOH&LW\ŊIRUDUREXVWGHYHORSPHQW

$+HDOWK\&LW\

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ŉOLYDEOHFLW\ZLWKTXDOLW\OLIHVW\OHVŊ HQKDQFHPHQWEXVLQHVVVROLFLWDWLRQWRFUHDWHPRUH &KDSWHU ,Q1HZ7DLSHL&LW\REWDLQHGWKHFHUWLƉFDWLRQIURP MREVVRFLDOKRXVLQJIRUWKH\RXWKXQLYHUVDOSXEOLF WKH:+2ŇV$OOLDQFHIRU+HDOWK\&LWLHV $)+& EULGJHG QXUVHU\VHUYLFHSDUHQWFKLOGFHQWHUVDQGQRQSURILW WRWKHZRUOGIRUWKHLQWHUQDWLRQDOFRPPXQLW\WRVHHWKH NLQGHUJDUWHQVKDYHEHHQLPSURYHGWRWDFNOHLVVXHV HƈRUWVRI1HZ7DLSHL&LW\LQ+HDOWK\&LW\ RIWUDQVSRUWDWLRQKRXVLQJDQGQXUVHU\VRDVWRGUDZ PRUH\RXQJSRSXODWLRQWRWKHFLW\,QDGGLWLRQWKHŉ1HZ :LWKDVSHFWVRIŉ+HDOWK3URPRWLRQ(FRQRPLF6DIHW\ 7DLSHL([HUFLVH,QLWLDWLYHŊSURMHFWFRPELQHV&LYLO6SRUWV DQG6RFLDO3DUWLFLSDWLRQŊ1HZ7DLSHL&LW\SURPRWHVWKH &HQWHUVVHQLRUJURXSPHDOSODQDQG/..&OXEVWR FRQFHSWRI+HDOWK\&LW\7KURXJKLQWHJUDWLRQDFURVV SURPRWHH[HUFLVHDQGDKHDOWK\GLHWIRULWVFLWL]HQVVR GHSDUWPHQWVDQGDFURVVGLVFLSOLQHVDVZHOODVWKH DVWRKHOSFLWL]HQU\DYHUWIHHEOHQHVVDQGGHOD\GLVDELOLW\

6RXUFH物2XWVWDQGLQJ1XUVLQJ3UDLVH

1HZ7DLSHL&LW\ 9ROXQWDU\/RFDO5HYLHZIRU6'*V

%5HVLOLHQW&LW\

,QUHFHQW\HDUVGXHWRWKHLQFUHDVLQJLPSDFWIURP , 3ODQIRUWKHFLW\ŇVVWUDWHJ\WRIXOO\XQGHUVWDQG FOLPDWHFKDQJHWR1HZ7DLSHL&LW\WKHGDPDJH WKHULVNVLQDQGGHYHORSPHQWSRVLWLRQLQJRIWKH SRWHQWLDODURXQGHVWXDULHVGHQVHO\SRSXODWHG FLW\ZKLOHLQFRUSRUDWLQJDOOIDFWRUVQHFHVVDU\ DUHDVRQWKHZHVWVLGHRIWKH7DLSHL%DVLQWKH IRUWKHGHYHORSPHQWLQWKHXUEDQSODQQLQJ 'DKDQ5LYHUHLWKHUEDQNRI;LQGLDQ5LYHUDQGWKH WRGHWHUPLQHWKHSULRULWLHVWKDWUHGXFHPDMRU PRXQWDLQRXVDUHDVKDYHHOHYDWHGRI1HZ GLVDVWHUULVNVZKLOHLQYHQWRU\LQJWKHUHJLRQDO 7DLSHL&LW\ŇVSRSXODWLRQUHVLGHLQWKHOLPLWHGXUEDQ UHVRXUFHV HJKXPDQFDSLWDOHFRQRP\ HQYLURQPHQW

&KDSWHU ӕ 1HZ7DLSHL&LW\6ROXWLRQVRQ6'*V

&6PDUWFLW\

1HZ7DLSHL&LW\KDVPLOOLRQSHRSOHDQGKDV , (PSKDVL]Hŉ3XEOLFŃ3ULYDWHŃ3HRSOHSDUWQHUVKLSŊ EHFRPHWKHPRVWSRSXODWHGFLW\LQ7DLZDQ:LWKWKH WRZLGHQWKHVFRSHIRUFLYLFSDUWLFLSDWLRQLQ SRSXODUL]DWLRQRIWKH,QWHUQHWDQGHOHFWULFLW\LQSHRSOHŇV DQDWWHPSWWRSURYLGHH[SHULPHQWDOYHQXHV OLYHVWREHWWHUWKHOLYHVRIWKHFLWL]HQU\1HZ7DLSHL IDFLOLWDWHVWDUWXSHFRV\VWHPDQGLQLWLDWH &LW\SURPRWHVŉ6PDUW&LW\Ŋ:LWKFLWL]HQVŇQHHGVDWLWV LQQRYDWLYHHQWUHSUHQHXULDOPRPHQWXPDFURVV FRUHFUHDWLYHWKLQNLQJDQGWHFKQRORJLFDOGHYHORSPHQW ƉHOGVDQGGLVFLSOLQHV DUHLQWURGXFHGWRHQKDQFHDGPLQLVWUDWLYHHƋFLHQF\DQG SURYLGHFRQYHQLHQWVHUYLFHVWRWKHSXEOLF ,, /LQNZLWKWKHHPHUJLQJWRSLFVRI6PDUW &LWLHVDFURVVERUGHUVHPHUJLQJWHFKQRORJ\ +HQFHZLWKŉ+XPDQLW\ŊDWLWVFRUH1HZ7DLSHL&LW\ LQGXVWULHVLQEORFNFKDLQVDUWLƉFLDOLQWHOOLJHQFH FRQVWUXFWD6PDUW&LW\YLDWKUHHDVSHFWV3XEOLF6HUYLFH HFRPPHUFHHVSRUWVDQGVPDUW &LW\*RYHUQDQFHDQG,QGXVWULDO'HYHORSPHQW,QWKH PDQXIDFWXULQJDUHSURDFWLYHO\SURPRWHGWR \HDUVUHFHQWO\1HZ7DLSHL&LW\KDVZRQLQWHUQDWLRQDO IRVWHUFRRSHUDWLRQDFURVVERUGHUV DZDUGVWKUHHFRQVHFXWLYHUHFRJQLWLRQVDVRQHRI WKH7RS,QWHOOLJHQW&RPPXQLWLHVE\WKH,QWHOOLJHQW ,,, 6XSSO\DPSOHHQHUJ\IRULQGXVWU\LQQRYDWLRQ &RPPXQLW\)RUXP ,&) WKUHHWLPHUHFRJQLWLRQZLWK DQGGHYHORSVPDUWHFRQRP\LQGXVWULDO 6PDUW&LW\$VLD3DFLƉF$ZDUGVIURP,QWHUQDWLRQDO'DWD WUDQVIRUPDWLRQLVHQJDJHGZLWKŉRQHVWRS &KDSWHU &RUSRUDWLRQ ,'& :H*R%HVWH*RYHUQPHQW3UL]HLQ VHUYLFHŊVWUDWHJ\ZHOFRPLQJEXVLQHVVHVDWKRPH WKHFDWHJRU\RI'LJLWDO'LYLGHDQGWKHUHFRJQLWLRQLQWKH DQGDEURDGWRLQYHVWLQ1HZ7DLSHL&LW\VRWKDW 6PDUW&LW\6XUYH\E\&RPPRQ:HDOWK0DJD]LQHWKDQNV WKHSXEOLFDQGSULYDWHVHFWRUVFDQZRUNDQG WRWKHMRLQWHƈRUWVZLWKLQWKH&LW\*RYHUQPHQW JURZWRJHWKHUDQGMRLQWO\EXLOGDQLQWHUQDWLRQDO OHYHOPRGHOVPDUWFLW\ ,QWKHIXWXUH1HZ7DLSHL&LW\VKDOOFRQWLQXHWRXSKROGWKH ŉKXPDQFHQWHUHGŊWKLQNLQJIRU6PDUW&LW\GHYHORSPHQW ,9 %XLOGDVPDUWFLW\HFRV\VWHPTXDOLW\DQG VROYHORFDOLVVXHVDQGHQJDJHZRUNVLQIRXUDVSHFWV FOHDUREMHFWLYHVDUHVHWZLWKVXSSRUWIURP WKHOHDGHUVDVZHOODVWKHRSHQPLQGRIWKH JRYHUQPHQWDQGWKHSDUWQHUVWRHPEUDFHQHZ HQYLURQPHQW

:LWKWKHSDVWWKHSUHVHQWDQGWKHIXWXUHDVWKHSRLQW RILQWHUYHQWLRQWKHHVVHQFHRIVPDUWFLW\OLHVLQKRZWR VROYHLVVXHVDQGPDNHKXPDQOLIHKDSSLHU,QWKHDJH RIUDSLGUHYROXWLRQRIWHFKQRORJ\WKHDSSOLFDWLRQRI ELJGDWDLVVLWXDWHGDWWKHFRUHIRUWKHGHYHORSPHQWRI VPDUWFLW\RI1HZ7DLSHL&LW\,QDGGLWLRQWRFROOHFWLQJ PDVVLYHGDWDLWLVPRUHLPSRUWDQWWRXVHWHFKQRORJLHV WRFRQYHUWGDWDLQWRGHFLVLRQPDNLQJWRROV

1HZ7DLSHL&LW\ 9ROXQWDU\/RFDO5HYLHZIRU6'*V

'/LYDEOHFLW\

1RZWKDWWKHFRQFHSWRIŉOLYDELOLW\DQGTXDOLW\RIOLIHŊ 7KHFRQFHSWRI/LYDEOH&LW\E\1HZ7DLSHL&LW\IHDWXUHV LVJDLQLQJLWVVLJQLILFDQFHLQWKHVRFLHW\KRZWKH WKHSURPRWLRQRIŉ/RFDO(GXFDWLRQ/RFDO(PSOR\PHQW FRQFHSWRIŉ/LYDEOH&LW\ŊFDQEHSUDFWLFHGVWUDWHJLFDOO\ /RFDO&DULQJ/RFDO+DSS\/LYLQJŊ:LWKYDULRXV1RVLQ DPRQJFLWLHVZRUOGZLGHLVDOVRDQHZGLUHFWLRQIRUWKH 7DLZDQLQFOXGLQJWKHPRVWSRSXODWHGFLW\WKHFLW\ZLWK LQWHUQDWLRQDOFLW\QHWZRUNV7KHOLYDELOLW\RIDOLYDEOHFLW\ WKHKHDGTXDUWHUVRI)R[FRQQWKHODUJHVWFRUSRUDWLRQ LVWKHŉVXLWDELOLW\IRUKXPDQOLYLQJŊ 0HUULDP:HEVWHU WKHWRSEUDQG$&(5WKHPRVWWRXULVWDWWUDFWLRQVIURP DQGŉLPSURYLQJTXDOLW\RIOLIHŊZKLFKKDVEHFRPH WKH7RS7RXULVW$WWUDFWLRQVDQGPRVWWRXULVWYLVLWV RQHRIWKHPDLQWRSLFVLQWKHƉHOGRIXUEDQSODQQLQJ 1HZ7DLSHL&LW\VKDOOFRQWLQXHLWVHQGHDYRULQEXLOGLQJD 1HZ7DLSHL&LW\DOVRVWDUWHGWRSURPRWHWKHVWUDWHJ\RI ORFDOOLYDEOHFLW\ /LYDEOH&LW\RILWVRZQLQLWV\HDUO\XUEDQSODQQLQJ

7KHGHILQLWLRQRIDOLYDEOHFLW\LVYDULHGIURPFRXQWU\ WRFRXQWU\

, 7KH81UHFRPPHQGVWKDWWKH6'*V GHYHORSPHQWRIDOLYDEOHFLW\QHHGVWRFRQQHFW ZLWKWKHORFDOHQYLURQPHQWDOGHYHORSPHQWDQG &KDSWHU VRFLDOPRPHQWXPLQWKHIDFHRIWKHGHFOLQHRI WKHGRZQWRZQDUHDDQGWKHUDSLGJURZWKRI VXEXUEDQDUHD

,, $FFRUGLQJWR9LFWRULD7UDQVSRUW3ROLF\,QVWLWXWH 973, WKHGHƉQLWLRQRIOLYDELOLW\UHIHUVWRWKH SXEOLFVDIHW\TXDOLW\RIHQYLURQPHQWXQLW\ IULHQGOLQHVVDHVWKHWLFVWKHVHQVHRISULGH DQGRSSRUWXQLW\RIDFRPPXQLW\

6RXUFH物1HZ7DLSHL&LW\0LOLRQ ,,, /LYDEOH&LW\LVŉDFLW\WKDWLPSURYHVWKH 3RSXODWLRQ&RPSOLDQFH&HUHPRQ\ TXDOLW\RIOLIHRIWKHUHVLGHQWVŊ7KDWLVLWLV DFLW\ZLWKDOODVSHFWVLQFOXGLQJHQYLURQPHQW VRFLHW\FXOWXUHLQIUDVWUXFWXUHJRYHUQDQFH DQGSDUWLFLSDWLRQLQYROYHGDFFRUGLQJWRWKH GHILQLWLRQE\WKH&HQWUHIRU/LYHDEOH&LWLHV &/& RI6LQJDSRUHFRPPXQLWLHVDQGORFDO JRYHUQPHQWVLQWKH8.DQGWKH0LQLVWU\IRU WKH(QYLURQPHQWRI1HZ=HDODQG

&KDSWHU ӕ 1HZ7DLSHL&LW\6ROXWLRQVRQ6'*V

1HZ7DLSHL&LW\&DVH6WXGLHV

6'*1R3RYHUW\ ӕ1HZ7DLSHL&LW\6RFLDO+RXVLQJ3URMHFW &KDSWHU .H\ZRUG物$JH&KLOGUHQEXLOGLQJHQYLURQPHQWKRPH

&RUH6'* 6\QHUJ\ 7UDGH2ƈ

7KHSRSXODWLRQRIWKLV1HZ7DLSHL&LW\KDVUHDFKHG LVQRWMXVWWREXLOGDSK\VLFDOEXLOGLQJWKDWVKHOWHUV PLOOLRQRIZKLFKPRUHWKDQœ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

1HZ7DLSHL&LW\ 9ROXQWDU\/RFDO5HYLHZIRU6'*V

6'*=HUR+XQJHU ӕ6XUSOXV)RRG1HWZRUN &KDSWHU .H\ZRUG物IRRGFRQVXPSWLRQGRQDWLRQIRRGVHFXULW\VKDULQJ

&RUH6'* 6\QHUJ\ 7UDGH2ƈ

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ƉWHG SURWHFWLRQFRPELQHGZLWKWKHPDUNHWSULYDWHHQWHUSULVHVDQG FRPPXQLWLHVIRUSURPRWLRQ 7KHFRQFHSWRI1HZ7DLSHL6XUSOXV)RRG1HWZRUNLVWR WXUQVXUSOXVLQJUHGLHQWVLQWRGHOLFLRXVIRRGDQGVKDUHLWZLWK 1HZ7DLSHL&LW\6XUSOXV)RRG1HWZRUNFRPELQHVWKH WKRVHZKRQHHGLW7KHVORJDQ:LWK)RRGWRVKDUHLVQRW VSRWVRIVKDULQJPHDOIRUDJHGSHRSOHDQGSRVWVFKRRO RQO\DFKHULVKIRUIRRGEXWDOVRIRUUHVSRQVLELOLW\7KURXJK FDULQJEDVHVDVWKHFROODUPHQX$WWKHVDPHWLPHWKH SXEOLFSURPRWLRQDQGHGXFDWLRQ1HZ7DLSHL&LW\HQFRXUDJHV WHDFKHUVVWXGHQWVRIWKHFROOHJHVXQLYHUVLWLHVKLJKHU WKHSXEOLFWRGHYHORSWKHKDELWRIFKHULVKLQJIRRG,IWKHUHLV YRFDWLRQDOFDWHULQJGHSDUWPHQWVVHUYHDVWKHFKHIVWR VXUSOXVRUQRQHHGWRXVHWKHQGRQDWHLWGLUHFWO\VRWKDWWKRVH WUDQVIRUPVSHFLDOLQJUHGLHQWVLQWRGHOLFLRXVGLVKHV,Q LQQHHGFDQHQMR\WKHWUXHYDOXHRIIRRG

&KDSWHU ӕ 1HZ7DLSHL&LW\6ROXWLRQVRQ6'*V

6'**RRG+HDOWKDQG:HOO%HLQJ ӕ1HZ7DLSHL)LWIRU$JH'LUHFWRU*HQHUDO &KDSWHU .H\ZRUG物+HDOWKDSSOLFDWLRQGLJLWDOWRROVGDWDH[HUFLVH

&RUH6'* 6\QHUJ\ 7UDGH2ƈ

7RSURPRWHWKHPRYHPHQWRIWKHUHJXODUSK\VLFDODFWLYLW\IRU FRSLHVH[FKDQJHG,QDGGLWLRQZLWKFROODERUDWLRQRILQGXVWULDO FLWL]HQVSUHYHQWLRQDQGUHYHUVDORIWKHGHELOLWDWLRQRFFXUUHG DQGDFDGHPLDLWIRUPVLQGXVWULDODOOLDQFHDQGGDWDLQWHJUDWLRQ LQ1HZ7DLSHL&LW\ODXQFKHGWKHƉUVWLQLWLDWLYH)LWIRU ZLWKVPDUWEUDFHOHWVDQGPHGLFDOHTXLSPHQWVDYLQJKHDOWKGDWD $JH:LWKFURVVVHFWRUVDQGLQWHJUDWHGUHVRXUFHVIURP DQGPRQLWRULQJSK\VLFDOVWDWXVDWDQ\WLPHDQGSURYLGHVSHRSOH EXUHDXVWKHLQLWLDWLYHHPSKDVL]HGWKHLPSRUWDQFHRIWKH LQVWDQWUHFRUGVRISHUVRQDOGLHWDQGH[HUFLVH WHVWLQJDQGUHFRUGLQJ$FFRUGLQJWRWKH\HDUGDWDDQDO\VLV RISHRSOHKDYHLPSURYHGWLOOSUHZHDNQHVVRUQRUPDO ,QWHUPVRILQWHUQDWLRQDOVWDQGDUGVWKHSODWIRUPKDVVLJQHGD SKDVHVVKRZLQJH[HUFLVHFDQHƈHFWLYHO\LPSURYHGHELOLWDWLRQ PHPRUDQGXPRILQWHUQDWLRQDOFRRSHUDWLRQZLWKWKH([HUFLVH 8SWRQRZWKH$SS,QIRUPDWLRQ3ODWIRUPKDVDFFXPXODWHG ,QWHUQDWLRQDO0HGLFLQH (,0 *OREDO$VVRFLDWLRQWRWUDLQ(,0 PRUHWKDQPHPEHUVIRULQGHSHQGHQWKHDOWK SK\VLFLDQVDQGSURIHVVLRQDOVDQGWRKDQGOHDQGWRSDUWLFLSDWH PDQDJHPHQW LQGRPHVWLFDQGLQWHUQDWLRQDOGHELOLWDWLRQSUHYHQWLRQVHPLQDUV ,WFDQDOVRSXEOLFO\SXEOLVKWKHHƈHFWLYHQHVVRIWKH1HZ7DLSHL ,QWKHSODWIRUPKDVLQWURGXFHGQHZKHDOWKFXUUHQF\ 'HELOLWDWLRQ3UHYHQWLRQ0DQDJHPHQWDQGEHDZDUGHGE\$VLDQ H[FKDQJHWRHQFRXUDJHFLWL]HQVWRH[FKDQJHKHDOWKUHFRUGIRU 'HELOLWDWLRQDQG0XVFOH'LVHDVH3XEOLF3ROLF\&RQWULEXWLRQ KHDOWK\OLYLQJVHUYLFHV7KHLQLWLDWLYHKDVODXQFKHGZLWKPRUH $ZDUG&ORXG,R7,QQRYDWLYH$ZDUGDQG,'&$VLD3DFLƉF WKDQKHDOWKFRLQVH[FKDQJHGDQGKHDOWK\OLYLQJ 6PDUW&LW\$ZDUG

1HZ7DLSHL&LW\ 9ROXQWDU\/RFDO5HYLHZIRU6'*V

6'*4XDOLW\(GXFDWLRQ ӕ+56PDUW/LEUDU\ &KDSWHU .H\ZRUG物/LEUDU\%RRN&LWL]HQUHDGLQJHGXFDWLRQ

&RUH6'* 6\QHUJ\ 7UDGH2ƈ

7KHEXLOGLQJRIWKH1HZ7DLSHL&LW\/LEUDU\ VPDLQEXLOGLQJ YROXPHV SLHFHV DQGPLOOLRQSHRSOHDWWUDFWHGWRWKH ORRNVOLNHDVWDFNRIERRNVFRPELQLQJWUDGLWLRQDQGGLJLWDO,WLV OLEUDU\DQGWKHQXPEHURIFLUFXODWLRQERRNVUHDFKHV DGLDPRQGOHYHOJUHHQHQHUJ\OLEUDU\WKDWEUHDWKHVDQGEUHDNV PLOOLRQ7KHWRWDOQXPEHURIDSSOLFDQWVUHDFKHG WKHWUDGLWLRQDOWKLQNLQJZLWK WZHQW\IRXUVHYHQ ZLWKPRQWKO\SHRSOHXVDJH1HZ7DLSHL&LW\/LEUDU\ VHUYLFHWKURXJKRXWWKH\HDUDQGLWŇVWKHƉ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ƈHUHQWFXOWXUHVDQGHQKDQFHFXOWXUDOH[FKDQJHV ERUURZHGERRNVZDVPLOOLRQ7KHWRWDOQXPEHURIERRNV EHWZHHQFLWLHV7KHQHZKHDGTXDUWHUVRIWKH1HZ&LW\/LEUDU\ ERUURZHGZDVPLOOLRQ RSHQHGLQDQGWLOOHQGRIZLWKWRWDORI

&KDSWHU ӕ 1HZ7DLSHL&LW\6ROXWLRQVRQ6'*V

6'*4XDOLW\(GXFDWLRQ ӕ1HZ5HVLGHQWVŇ&KLOGUHQ(GXFDWLRQ3URJUDP &KDSWHU .H\ZRUG物,PPLJUDQWHGXFDWLRQWHDFKHUODQJXDJHVVFKRRO

&RUH6'* 6\QHUJ\ 7UDGH2ƈ

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

1HZ7DLSHL&LW\ 9ROXQWDU\/RFDO5HYLHZIRU6'*V

6'**HQGHU(TXDOLW\ ӕ1HZ7DLSHL&LW\*HQGHU(TXDOLW\3ROLF\ &KDSWHU .H\ZRUG物JHQGHUHTXLW\HPSRZHUPHQWWUDLQLQJZRPHQ

&RUH6'* 6\QHUJ\ 7UDGH2ƈ

7KHGHJUHHRIJHQGHUHTXDOLW\VKRZVWKHGHJUHHRI ZLWKJHQGHUHTXDOLW\DQGDFWLYHO\SURPRWHHTXDO SURJUHVVRIVRFLHW\FLWLHVDQGFRXQWULHV7KH1HZ RSSRUWXQLWLHVIRUPHQDQGZRPHQWRSDUWLFLSDWHLQ 7DLSHL&LW\*RYHUQPHQWKDVVHWDVWKH1HZ7DLSHL WUDGLWLRQDOULWXDOV3XEOLVKDVSHFLDOHGLWLRQRIWKHODG\LQ JHQGHUHTXDOLW\\HDUDQGDOOWKHEXUHDXVRIWKHZKROH WKHYHJHWDEOHPDUNHWWRSURPRWHWKHVWRU\RIZRPHQ V JRYHUQPHQWKDYHEHHQZRUNLQJWRJHWKHU7KURXJKRXW HQWUHSUHQHXUVKLSRUVXFFHVVIXORSHUDWLRQLQWKHPDUNHW WKHZKROH\HDUZHKDYHFRQWLQXHGWRSURPRWHWKH WRSURPRWHZRPHQ VJURXSVWRWXUQWKHXQGHUSULYLOHJHG SURJUDPRIVH[XDOKLJKOLJKWVLQDUHOD\LQJPDQQHU ZRPHQDZD\IURPYLROHQFHDQGHFRQRPLFVHOIUHOLDQFH LQWHJUDWLQJWKHRULJLQDOZRUNRUDFWLYLWLHVLQWRJHQGHU DQGWRGHHSHQJHQGHUPDLQVWUHDPLQJWRHOLPLQDWHDOO SHUVSHFWLYHVVXFKDVKROGLQJZRPHQŇVHQWUHSUHQHXUVKLS IRUPVRIGLVFULPLQDWLRQDJDLQVWZRPHQ7KHDFWLYLW\ 7KHPDWLFOHFWXUHVHQFRXUDJHZRPHQWROHDUQDERXW LQLWLDWLYHPDNHVJHQGHUHTXDOLW\DKDELWLQOLIHDQGJRHV HQWUHSUHQHXUVKLSVWUHQJWKHQWKHFRQFHSWRIHTXDOLW\ GHHSLQWRHYHU\FRUQHURI1HZ7DLSHL&LW\WRFUHDWHD EHWZHHQPHQDQGZRPHQDQGGHFODUHWKDWPDUULHG KHDOWK\DQGTXDOLW\OLYLQJHQYLURQPHQW GDXJKWHUVDOVRKDYHWKHULJKWWRLQKHULWSURSHUW\ HQFRXUDJHSHRSOHWRH[DPLQHWKHIXQHUDOFHUHPRQLHV

&KDSWHU ӕ 1HZ7DLSHL&LW\6ROXWLRQVRQ6'*V

6'*&OHDQ:DWHUDQG6DQLWDWLRQ ӕ3XEOLFSULYDWHSDUWQHUVKLSWRDFKLHYHVSRQJHFLW\ &KDSWHU .H\ZRUG物ƊRRGVHQJLQHHULQJ3XEOLFDQGSULYDWHSDUWQHUVKLS&LW\5DLQLQIUDVWUXFWXUH

&RUH6'* 6\QHUJ\ 7UDGH2ƈ

,QUHFHQW\HDUVGXHWRFOLPDWHFKDQJHWKHUHKDYHEHHQ 1HZ7DLSHL&LW\*RYHUQPHQWKDVUHLQWHJUDWHGWKH PDQ\FDVHVRIKHDY\UDLQVDQGGLVDVWHUVLQDVKRUW LQILOWUDWLRQIDFLOLWLHVDQGZDWHUVWRUDJHUHJXODWLRQV SHULRGRIWLPH,QRUGHUWRDOOHYLDWHWKHORDGRQWKH WKDWZHUHVFDWWHUHGWKURXJKRXWWKHXUEDQSODQQLQJ VHZHUV\VWHPWKH1HZ7DLSHL&LW\*RYHUQPHQWLVVXHG DQGFRQVWUXFWLRQWHFKQRORJ\UXOHV1HZ7DLSHL&LW\ WKHŉ1HZ7DLSHL&LW\:DWHUDQG:DWHU&RQVHUYDWLRQ *RYHUQPHQW'HSDUWPHQWRI:DWHU5HVRXUFHVFRQGXFWHGD $XWRQRPRXV5HJXODWLRQVŊ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

1HZ7DLSHL&LW\ 9ROXQWDU\/RFDO5HYLHZIRU6'*V

6'*$ƈRUGDEOHDQG&OHDQ(QHUJ\ ӕ6PDUW(QHUJ\0DQDJHPHQW&HQWHU &KDSWHU .H\ZRUG物HQHUJ\VPDUWV\VWHPHOHFWULFLW\HƋFLHQF\ORZFDUERQ

&RUH6'* 6\QHUJ\ 7UDGH2ƈ

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ƋFLHQF\DQGODERUFRVWVE\UHGXFWLRQ XVDJHHYHU\\HDU

&KDSWHU ӕ 1HZ7DLSHL&LW\6ROXWLRQVRQ6'*V

6'*'HFHQW:RUNDQG(FRQRPLF*URZWK ӕ)URPWR &KDSWHU .H\ZRUG物EXVLQHVVLQYHVWPHQWVWUXJJOHVVHUYLFHLQGXVWU\

&RUH6'* 6\QHUJ\ 7UDGH2ƈ

7KURXJKWKH1HZ7DLSHL&LW\Ň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

1HZ7DLSHL&LW\ 9ROXQWDU\/RFDO5HYLHZIRU6'*V

6'*,QGXVWU\,QQRYDWLRQDQG,QIUDVWUXFWXUH ӕ%UDQG3URPRWLRQRI:DQOL&UDEDQG*RQJ/LDR$EDORQH &KDSWHU .H\ZRUG物EUDQGLQJSURPRWLRQLQQRYDWLRQWUDGHGHVLJQ

&RUH6'* 6\QHUJ\ 7UDGH2ƈ

,Q1HZ7DLSHL&LW\:DQOL&UDELVRQHRIWKHPRVW 0RUHRYHU*RQJOLDR$EDORQHEUDQGKDVDOVRHQDEOHG VXFFHVVIXOIRRGWREHSXVKHGRQWKHLQWHUQDWLRQDOVWDJH PDQ\\RXWKVWRUHWXUQWRWKHLUKRPHWRZQV7KHEUDQG ZLWKWKHRXWSXWYDOXHRIELOOLRQ,WDQGLWVEUDQGKDYH JRWSURPRWHGLQWRPDUNHWLQJFKDQQHOVDQGSURGXFWLRQ JURZQLWVRXWSXWYDOXHIRUWLPHV:LWKWKHVXSSRUW ZKLFKEULQJVPRUHDQGPRUHSHRSOHWRORFDOYLVLWVDQG RIFLW\JRYHUQPHQWŉ:DQOL&UDEŊLVDEUDQGSURPRWHG WKHIRRGLWVHOI7KHPRGHOHVWDEOLVKHGFUHDWHDSODFH VLQFH$IWHUWKHPDUNHWLQJDQGWKHSURPRWLRQE\ IRUORFDOFRPPXQLW\ZKLFKLVWKHLVVXHZHPXVWIDFHLQ \RXQJƉVKHUPHQŉ:DQOL&UDEŊEHFDPHWKHƉUVWEUDQG WKHIXWXUH,QSDUWLFXODULWVPRGHOLQFOXGHVVPDOOVFDOH RI7DLZDQHVHFUDEVQRWRQO\VXFFHVVIXOO\LQFUHDVHWKH IDUPHUVIURPWKHORFDOFRPPXQLW\WRFRQWLQXHDQGWR LQFRPHRIƉVKHUPHQEXWDOVRDFWLYDWHORFDOVLJKWVHHLQJ LQYHVWWKHWDOHQWVIRUDVXVWDLQDEOHIXWXUH FDWHULQJDQGƉVKHULHVSURFHVVLQJLQGXVWULHV

&KDSWHU ӕ 1HZ7DLSHL&LW\6ROXWLRQVRQ6'*V

6'*5HGXFHG,QHTXDOLW\ ӕ-RLQW'LQLQJIRU6HQLRUV &KDSWHU .H\ZRUG物GLVDELOLWLHVKHDOWKFRPPXQLW\DJHVVRFLHW\

&RUH6'* 6\QHUJ\ 7UDGH2ƈ

1HZ7DLSHL&LW\VRFLDODƈ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ŇVQRWOLPLWHGWRWKHKRPHRUWKH QRWEHJLYHQ3OXVWKHPHDOLVDNLQGRIFRPPXQLW\FDUH UHVWDXUDQWEXWRXWVLGHLQFRPPXQLW\JDWKHULQJSODFH VSLULW,WZLOOEHYHU\KDUGDWILUVWEXWZKHQLWFRPHV VXFKDVWKHFLYLFDFWLYLW\FHQWHUDQGUHOLJLRXVWHPSOHV WRWKHHQGPDQ\SULYDWHGRQDWLRQVFRPHLQ6RPHDUH FKLOGUHQZKRGRQDWHPRQH\WROHWWKHLUSDUHQWVDQG SDUHQWVLQWKHFRPPXQLW\WRHDWVLQFHWKHFKLOGUHQIHHO WKHYDOXHVRIWKHHOGHUV

1HZ7DLSHL&LW\ 9ROXQWDU\/RFDO5HYLHZIRU6'*V

6'*6XVWDLQDEOH&LWLHVDQG&RPPXQLWLHV ӕ1HZ7DLSHL6WDUU\3URMHFW &KDSWHU .H\ZRUG物/DQGXUEDQGHYHORSPHQWXUEDQ3ODQQLQJWUDQVSRUWPHWUR

&RUH6'* 6\QHUJ\ 7UDGH2ƈ

6LQFH1HZ7DLSHL&LW\KDVFRRSHUDWHGZLWK 7KHFLW\JRYHUQPHQWFRQWLQXHVWRSXWHƈRUWRQVWDUU\ WKH057IRULWVULQJDQG/LQHVGHYHORSPHQWWR SURMHFWLQFOXGLQJWKHFRPSOHWLRQRIWKH-LQVKDQ$UHD SURPRWHWKHRYHUDOOGHYHORSPHQWSODQRIWKH6KLQLQJ &LW\5HGHVLJQLQJ$UHD/LQ.RX&LW\$UHD5HGHPSWLRQ )LYH6WDULQFOXGLQJWKH7DLSHL3RUW6SHFLILF=RQH $UHDDQG3DQTLDR'LVWULFW7RDFFRPPRGDWHWKH UHGLVWULEXWLRQRIWKHWZRVLGHVRIWKHƊ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

&KDSWHU ӕ 1HZ7DLSHL&LW\6ROXWLRQVRQ6'*V

6'*5HVSRQVLEOH&RQVXPSWLRQDQG3URGXFWLRQ ӕ2UJDQLF9DJHWDEOH6FKRRO/XQFK &KDSWHU .H\ZRUG物FRQVXPSWLRQRUJDQLFIRRGF\FOHUHVSRQVLEOHSURGXFWLRQFKDLQOXQFK

&RUH6'* 6\QHUJ\ 7UDGH2ƈ

7RVXSSO\RIQXWULWLRXVOXQFKZLWKRUJDQLFYHJHWDEOHV )LUVWEXLOGWKHSDWKDQGUHLQLWLDWHDJULFXOWXUDORQH DVEDVH1HZ7DLSHL&LW\*RYHUQPHQWFRQWLQXHVWR LVWKHFRUHRIWKHSROLF\SURPRWLRQRIWKH1HZ7DLSHL GULYHWKHRUJDQLFLQGXVWU\ZLWKDŉ1HZO\2SHQ0DUNHWŊ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ƉFDWLRQDUHDEXWWKH\FRXOGQRWXVHWKHLUSURGXFWLRQ LWQRZVXSSOLHVSULPDU\DQGVHFRQGDU\VFKRROV FDSDFLW\1HZ7DLSHL&LW\VWDUWHGDQRUJDQLFQXWULWLRQ NLQGHUJDUWHQVDQGSXEOLFFDUHFHQWHUVDQG OXQFK$WWKDWWLPHLWDWHRI7DLZDQŇVSURGXFWLRQ FKLOGUHQLQWKHFLW\7KH\FDQHDWWKHVDIHVWDQG 1RZRUJDQLFYHJHWDEOHVDUHSRSXODUDQGDOOPDMRU KHDOWKLHVWRUJDQLFYHJHWDEOHVHYHU\ZHHN FKDQQHOVDUHDOVRDYDLODEOH

1HZ7DLSHL&LW\ 9ROXQWDU\/RFDO5HYLHZIRU6'*V

6'*5HVSRQVLEOH&RQVXPSWLRQDQG3URGXFWLRQ ӕUH%$*EDJWREDJSURMHFW &KDSWHU .H\ZRUG物EDJUHXVHSODVWLFFLUFXODUHFRQRP\UHF\FOH

&RUH6'* 6\QHUJ\ 7UDGH2ƈ

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

&KDSWHU ӕ 1HZ7DLSHL&LW\6ROXWLRQVRQ6'*V

6'*&OLPDWH$FWLRQ ӕ1HZ7DLSHL/RZ&DUERQ&RPPXQLW\'HYHORSPHQW&HQWHU &KDSWHU .H\ZRUG物ORZEDUFRQFOLPDWHFKDQJHJOREDOZDUPLQJHPLVVLRQWDUJHWHGXFDWLRQ

&RUH6'* 6\QHUJ\ 7UDGH2ƈ

,QYLHZRIWKHFOLPDWHFKDQJHFDXVHGE\JOREDOZDUPLQJ EXLOGLQJVJUHHQWUDQVSRUWDWLRQJUHHQHQHUJ\UHF\FOLQJ LQRUGHUWRDFWLYHO\UHGXFHJUHHQKRXVHJDVHPLVVLRQV UHVRXUFHVDQGVXVWDLQDEOHOLYLQJHQYLURQPHQWŊWRDFKLHYH UHGXFHJOREDOZDUPLQJWUHQGVDQGHQYLURQPHQWDO WKHXOWLPDWHJRDORIŉORZFDUERQFLWLHVŊ ORDGQRWRQO\PDQ\FRXQWULHVEXWDOVRFLWLHVDFWLYHO\ SDUWLFLSDWHLQDQGSURPRWHFDUERQUHGXFWLRQ7KH1HZ $WWKHVDPHWLPHLQOLQHZLWKWKHQDWLRQDOFDUERQ 7DLSHL&LW\*RYHUQPHQWLVDOVRQRWVLWWLQJDVLGH%\ UHGXFWLRQWDUJHWWKH1HZ7DLSHL&LW\/RZ&DUERQ WDNLQJWKHRSSRUWXQLW\RIXSJUDGLQJWRWKHPXQLFLSDOLW\ &HQWHUDOVRFRRSHUDWHGZLWKWKHGHFODUDWLRQ,QWKHƉUVW RQ2FWREHULWKDVWDNHQWKHOHDGLQVHWWLQJXS SKDVHWKHJUHHQKRXVHJDVHPLVVLRQVZLOOUHWXUQ WKH/RZ&DUERQ&RPPXQLW\'HYHORSPHQW&HQWHULQ WRWKHOHYHO,QWKHVHFRQGSKDVHZLOOUHWXUQ WKHIRUZDUGORRNLQJGLUHFWLRQ,WKDVEHFRPHWKHƉUVW JUHHQKRXVHJDVHPLVVLRQVWROHYHOVZKLFKZLOOEH LQGHSHQGHQWXQLWLQWKHFRXQWU\WRLPSOHPHQWFDUERQ UHGXFHGE\,QJUHHQKRXVHJDVHPLVVLRQV UHGXFWLRQ7KHORFDOJRYHUQPHQWWKDWZRUNVDQGDFWLYHO\ ZLOOUHWXUQWROHYHOVPLQXV SURPRWHVWKHILYHPDMRUJRYHUQDQFHD[HVRIŉJUHHQ

1HZ7DLSHL&LW\ 9ROXQWDU\/RFDO5HYLHZIRU6'*V

6'*/LIH%HORZ:DWHU ӕ1HZ7DLSHL0DULQH5HVRXUFHV5HKDELOLWDWLRQ3DUN &KDSWHU .H\ZRUG物ELRGLYHUVLW\ƉVKVSHLFHVFRDVWDOPDULQHSRUWUHVHUYDWLRQ

&RUH6'* 6\QHUJ\ 7UDGH2ƈ

)RXQGHGLQ/RQJPHQYLOODJH*RQJJD'LVWULFWLQ 1HZ7DLSHL&LW\*RYHUQPHQW0DULQH5HVRXUFHV WKHSDUNKDVEHHQPRYHGWRWKHFXUUHQWVLWHRI)XOLDQ 5HKDELOLWDWLRQ3DUNZLOOFDUU\RXWWKHFXOWLYDWLRQRI YLOODJHLQWRVHWXSDTXDFXOWXUHEUHHGLQJIDFLOLWLHV DEDORQHVHHGOLQJVHYHU\1RYHPEHUDQGWKHXSFRPLQJ $WWKHHDUO\VWDJHLQLWEHJDQWRFRRSHUDWHZLWK QH[WILYHWRVL[PRQWKVZKHQWKHDEDORQHEDE\JURZV .HHOXQJ1DWLRQDO7DLZDQ2FHDQ8QLYHUVLW\WRUHMXYHQDWH WRWRFPWKHVWXGHQWVLQWKH1HZ7DLSHL&LW\ZLOO ƊRZHULQJEUDQFKHVDQGFUDEV EHLQYLWHGWRZRUNWRJHWKHU,QWKH*RQJJDVHDDUHDRI 1HZ7DLSHL&LW\LWLVKRSHGWKDWWKHPDULQHUHVRXUFHV ,QUHFHQW\HDUVLQRUGHUWRLPSURYHXQGHUVWDQGLQJWKH ZLOOEHLQFUHDVHGWKURXJKWKHFXOWLYDWLRQDQGWKH RFHDQWKHPDULQHUHVRXUFHVUHKDELOLWDWLQJSDUNVWDUWHG FRQFHSWRIPDULQHUHVRXUFHFRQVHUYDWLRQZLOOEHWDNHQ IURPWKHSULPDU\VFKRROWRWKHXQLYHUVLW\DWDOOVWDJHVRI IRUIXWXUHJHQHUDWLRQV WKHVFKRRO VDSSHDUDQFHWRHQULFKPDULQHOLIHUHVRXUFHV SURIHVVLRQDOLQWHUSUHWDWLRQWRDOOYLVLWRUV

&KDSWHU ӕ 1HZ7DLSHL&LW\6ROXWLRQVRQ6'*V

6'*/LIHRQ/DQG ӕ(FRORJLFDO%OXH%HOW &KDSWHU .H\ZRUG物HFRV\VWHPELRGLYHUVLW\SURWHFWHGVSHFLHVDQLPDOVHFRORJLFDOHGXFDWLRQ

&RUH6'* 6\QHUJ\ 7UDGH2ƈ

1HZ7DLSHL&LW\$JULFXOWXUDO%XUHDXXWLOL]HWKHFRQFHSW ,QWKHIXWXUHWKH1HZ7DLSHL&LW\*RYHUQPHQWZLOOFRQWLQXH RIŉ(FRORJLFDO%OXH%HOWŊ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ƉHG

1HZ7DLSHL&LW\ 9ROXQWDU\/RFDO5HYLHZIRU6'*V

6'*3HDFH-XVWLFHDQG6WURQJ,QVWLWXWLRQ ӕ 1HZ7DLSHL,QWHOOLJHQFH,QWHJUDWHG&HQWHU ,,& &KDSWHU .H\ZRUG物OHJDOVPDUWQRQYLROHQFHVDIHW\SROLFH

&RUH6'* 6\QHUJ\ 7UDGH2ƈ

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ƉHOGLQYHVWLJDWLRQDQDO\VLVFULPLQDO 7KH0D\RURI1HZ7DLSHL&LW\SURSRVHGWKUHHPDLQ FDVHVLQFOXGLQJPDQ\PDMRUVRFLDOFDVHV7KHXVHRIDOO GHYHORSPHQWD[HVRQHRIZKLFKLVŉ%XLOGLQJD6PDUW URXQG'WHFKQRORJ\IRUVHFXULW\QHWZRUNWRPDLQWDLQ &LW\Ŋ,QWKHIXWXUHXUEDQVHFXULW\PDQDJHPHQWVKRXOGEH VHFXULW\RISXEOLFWUDƋFLQYDULRXVVFDOHDFWLYLWLHVLQ1HZ DFFRPSDQLHGE\WHFKQRORJ\XVLQJELJGDWD$,DUWLILFLDO 7DLSHL7KHUHKDYHEHHQDFWXDODWWHQGDQFHVDQGWKH LQWHOOLJHQFHWHFKQRORJ\DFFXUDWHSROLFHVHUYLFHDQG IXWXUHZLOOEHRƋFLDOO\RUJDQL]HG$GKHULQJWRWKHVSLULWRI LQWHJUDWLQJWKHXQLWŇVVHQWLPHQW&KDQJHSDVVLYHWRDFWLYH XWLOL]LQJWHFKQRORJ\LQWHJUDWLQJLQIRUPDWLRQDQGLQQRYDWLQJ DSSURDFK7KHFLW\JRYHUQPHQWLVXSIRUVWUHQJWKHQLQJ DSSOLFDWLRQWKHFLW\JRYHUQPHQWZLOOFRQWLQXHWRSURYLGH EXUHDXFUDWLFFURVVGRPDLQFRRSHUDWLRQDQGMRLQWO\ZHDYH VXSSRUWWRYDULRXVSROLFHVHUYLFHIXQFWLRQVDQGEXLOGD1HZ WKHQHZ1HZ7DLSHLVRFLDOVDIHW\QHWWRDFKLHYHHƈHFWLYH 7DLSHL6PDUW7HFKQRORJ\&LW\WRPDNHWKHSHRSOHRI1HZ FULPHSUHYHQWLRQ 7DLSHLIHHOPRUHDWHDVH

&KDSWHU ӕ 1HZ7DLSHL&LW\6ROXWLRQVRQ6'*V

6'*3HDFH-XVWLFHDQG6WURQJ,QVWLWXWLRQ ӕ 1HZ7DLSHL2SHQ'DWD3ODWIRUP &KDSWHU .H\ZRUG物GDWDRSHQJRYHUQDQFHLQFOXVLRQDOOLDQFH

&RUH6'* 6\QHUJ\ 7UDGH2ƈ

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ƉUVW LQWHOOHFWXDODVVHWVWRFUHDWHPRUHFRQYHQLHQWVHUYLFHV FLW\LQ$VLDWRVLJQWKHLQWHUQDWLRQDOPDUNHWFRQWLQXHWR IRUWKHSXEOLF

1HZ7DLSHL&LW\ 9ROXQWDU\/RFDO5HYLHZIRU6'*V

6'*3DUWQHUVKLSIRU*RDOV ӕ6PDUW&LW\0R86LJQHG%HWZHHQ1HZ7DLSHL&LW\DQG$XVWULD &KDSWHU .H\ZRUG物VPDUWFLW\LQWHUQDWLRQDOIRUXPJOREDOSDUWQHUVKLSNQRZOHGJHVKDULQJ

&RUH6'* 6\QHUJ\ 7UDGH2ƈ

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ƋFLDOVWRDSSO\IRURƋFLDOGRFXPHQWVGRQRWQHHGWR JRWRWKHJRYHUQPHQWDORƋFHRUWKHFHQWUDODXWKRULWLHV DQG\RXFDQDSSO\IURPKRPHRQOLQH

&KDSWHU 1HZ7DLSHL&LW\ŇV ,QWHUQDWLRQDO3DUWLFLSDWLRQ IRU6'*V

&KDSWHU ӕ 1HZ7DLSHL&LW\ŇV,QWHUQDWLRQDO3DUWLFLSDWLRQIRU6'*V

1HZ7DLSHL&LW\ŇV,QWHUQDWLRQDO3DUWLFLSDWLRQIRU6'*V

%DFNJURXQG

7KHIRFXVRI1HZ7DLSHL&LW\ŇV9/5LVWRWUDQVODWHWKH ,VVXH7KH9/5HƈHFWLYHO\LQWHJUDWHVSODQQLQJFRPELQLQJ SUHYLRXVDFKLHYHPHQWVYLDWKHFRPPRQODQJXDJHRI WKHGHYHORSPHQWVDWWKHQDWLRQDOUHJLRQDODQGORFDOOHYHOV WKH6'*VVRDVWREULGJHWRPRUHRSSRUWXQLWLHVDQG SRVVLELOLWLHVRILQWHUQDWLRQDOFRRSHUDWLRQ

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

1HZ7DLSHL&LW\ 9ROXQWDU\/RFDO5HYLHZIRU6'*V

6WUDWHJLF7RRO, &LUFXODU&RQVWUXFWLRQWR'HPRQVWUDWHWKH,QWHJUDWLQJSURFHVVRI6'*)UDPHZRUN

1HZ7DLSHL&LW\LQWURGXFHGWKHFLUFXODUIUDPHZRUNLPSOHPHQWDWLRQVWUDWHJ\DQG UHVRXUFHDOORFDWLRQSURSRVHGE\WKH8QLWHG1DWLRQV'HYHORSPHQW3URJUDPPH 81'3 WRFODULI\SROLF\QHHGVSROLF\SULRULWLHVDQGRYHUORRNHGUHVRXUFHVDV ZHOODVIRUWUDQVDJHQF\LQWHJUDWLRQVRDVWRUHDOL]HLQYHQWRU\SURFHVVHVIRUWKH *RDOV:LWKWKDW1HZ7DLSHL&LW\LQYROYHVYDULRXVFLYLFSDUWLFLSDWLRQLQWKHSROLF\ IRUPXODWLRQSURFHVVHVDVIROORZV

Ŏ *RYHUQDQFHIRUYLVLRQDQG*RDOVUHDOL]DWLRQ Ŏ )RUPXODWLRQRIVWUDWHJLHVUHTXLUHGIRUWKHUHDOL]DWLRQRIYLVLRQDQG*RDOV Ŏ ,QYHQWRU\RIILQDQFHDQGRWKHUUHVRXUFHVUHTXLUHGIRUWKHUHDOL]DWLRQ RIYLVLRQDQG*RDOV

Ŏ WKHPRQLWRULQJDQGDVVHVVPHQWIRU*RDOUHDOL]DWLRQDQGWKHVWUDWHJLF DUUDQJHPHQWRIWKHSURJUHVV

7KHPXQLFLSDODFKLHYHPHQWVRYHUWKH\HDUV GDWDDQGFDVHV DUHFRPELQHGZLWKWKH6'*V IUDPHZRUNWRIDFLOLWDWHLQWHUQDWLRQDOFROODERUDWLRQDQGFRPPXQLFDWLRQ1HZ7DLSHL&LW\ DJJUHJDWHGWKHGDWDDQGFDVHVRIWKHFLW\YLDSKDVHGVWUDWHJLFLPSOHPHQWDWLRQHVWDEOLVKLQJ WKHIXWXUHDSSOLFDWLRQDVZHOODVLQWHUQDWLRQDOFROODERUDWLRQDQGFRPPXQLFDWLRQVWUDWHJ\IRU 1HZ7DLSHL&LW\WRPDUFKWRZDUGWKHYLVLRQRI/LYDEOH&LW\ &KDSWHU

&\FOHRI8UEDQ3XEOLF3ROLF\RQ6'*V 6RXUFH物8&/*

&KDSWHU ӕ 1HZ7DLSHL&LW\ŇV,QWHUQDWLRQDO3DUWLFLSDWLRQIRU6'*V

6WUDWHJLF7RRO,, 6'6WUDWHJLF,PSOHPHQWDWLRQ)UDPHZRUNIRU,QWHUGLVFLSOLQDU\&RRSHUDWLRQ

,QWKHLPSOHPHQWDWLRQRIWKH6'*V1HZ7DLSHL&LW\LPSOHPHQWVPRQLWRUVDVVHVVHVDQG UHSRUWVRQWKHORFDOGHYHORSPHQWSODQVEDVHGRQWKHSULQFLSOHVRIWKH6'*V%HVLGHV XQGHUVWDQGLQJWKHSRWHQWLDOGLYHUVLW\RIHDFKVWDNHKROGHUZHHVWDEOLVKHGDFKDQQHORI SDUWQHUVKLSIRUFRPPXQLFDWLRQRQDUHJXODUEDVLVWRIDFLOLWDWHWKHORQJWHUPLQYHVWPHQW RIUHVRXUFHVWRWKHORFDO

1HZ7DLSHL&LW\KDVDOZD\VEHHQHQFRXUDJLQJVWDNHKROGHUVWRSDUWLFLSDWHLQGLVFXVVLRQV )XUWKHUPRUHLWZDVQRWPHUHO\DVVHPEOLQJDOOORFDODFWRUVEXWDQHVWDEOLVKHG PHFKDQLVPIRUSDUWLFLSDWLRQDQGGLVFXVVLRQYLDVWUDWHJLFSODQQLQJVRWKDWHDFKSDUW\ ZLOOQRWZDVWHWLPHRQWKHFRPPRQLVVXHVLQGHFLVLRQPDNLQJRULPSOHPHQWDWLRQDQG VSHFLƉFDOO\GHYHORSYLDEOHVROXWLRQVDFFRUGLQJWRWKH*RDOVDQGQHHGV

,QWKHPHDQWLPHEDVHGRQWKHFDSDELOLW\PLVVLRQDQGUHVRXUFHVRI1HZ7DLSHL&LW\ DYDLODEOHDWSUHVHQWGLƈHUHQWOHYHOVRIWKH&LW\*RYHUQPHQWDUHVKRZFDVHGLQVWDJHVVR DVWRHOHYDWHWKHHƈHFWLYHQHVVRIWKHSROLF\LPSOHPHQWDWLRQDWWKHORFDOUHJLRQDODQG QDWLRQDOOHYHOVZLWKWKHVSLULWRIŉ/HDYLQJQRRQHEHKLQGŊ1HZ7DLSHL&LW\LVFRQYLQFHG WKDWLWVHUYHVDVPHUHO\RQHVPDOOVWHSWRWKHVXVWDLQDEOHGHYHORSPHQWRIFLW\,QWKH IXWXUHPRUHGLVFXVVLRQVZLOOEHUHTXLUHGWRWDONRQWKHSRVVLELOLWLHVRIFRRSHUDWLRQ DFURVVGLYHUVHVWDNHKROGHUVLQFOXGLQJWKHSURJUHVVRQWKHILQDQFLQJIRUWKHFLW\ ƉQDQFLQJIUDPHZRUNIRUWKHORFDODQGUHJLRQDOOHYHOVPRQLWRULQJDQGLQFHQWLYHPHDVXUHV LQWKHFLW\HWF:HPD\ZRUNWRJHWKHUZLWKLQWHUQDWLRQDORUJDQL]DWLRQVPRUHLQWKHGD\V

&KDSWHU WRFRPHWRDJJUHJDWHUHVRXUFHVIRUWKHFLWLHVLQQHHG

.H\(OHPHQWVRI8UEDQ&URVV6HFWRU 3ODQQLQJRQ6'*V 6RXUFH物8&/*

1HZ7DLSHL&LW\ 9ROXQWDU\/RFDO5HYLHZIRU6'*V

1HZ7DLSHL&LW\ŇV,QWHUQDWLRQDO1HWZRUN

$VPRUHDQGPRUHFLWLHVFRPSOHWHGWKHLQWHJUDWLRQRIWKHDIRUHPHQWLRQHGWRROVWKH\ FDQZRUNDQGHVWDEOLVKSDUWQHUVKLSZLWK1HZ7DLSHL&LW\IDVWHUFKDQQHOLQJSURSHU LQWHUQDWLRQDOUHVRXUFHVWRWKHORFDOVXVWDLQDEOHGHYHORSPHQWHQYLURQPHQWLQWKHORQJUXQ +HUHZHFLWHWKHWZRLQWHUQDWLRQDOFLW\QHWZRUNV1HZ7DLSHL&LW\KDVEHHQZRUNLQJZLWK IRUH[DPSOH

8QLWHG&LWLHVDQG/RFDO*RYHUQPHQWV 8&/*

$VDPHPEHURIWKHUHJLRQDOFRPPLWWHHRIWKH8QLWHG&LWLHVDQG/RFDO*RYHUQPHQWV 8&/* 1HZ7DLSHL&LW\QRWRQO\RƈHUVRSSRUWXQLWLHVWRRUJDQL]HUHJLRQDOH[FKDQJHV RQ6XVWDLQDEOH'HYHORSPHQWEXWFRQWLQXHVWRXSGDWHLWVPXQLFLSDOFRQWULEXWLRQV EULGJLQJWKHFRRSHUDWLRQZLWKWKH81'3DQGWKH81+DELWDW:HFDPHXSZLWKOHDUQLQJ DFWLYLWLHVDQGEHVWSUDFWLFHVIRUGLƈHUHQWDUHDV WRDOLJQORFDOSODQVZLWKWKH6'*VDQG WRVXSSRUWORFDODXWKRULWLHVWRFRQWULEXWHWRWKH915 $OVRGHFHQWUDOL]DWLRQJOREDOO\ DQGGHPRFUDF\ZDWFKORFDOO\DVZHOODVORFDOJRYHUQPHQWILQDQFLQJZRUOGZLGHDQG LQYHVWPHQWZDWFKHVDUHXWLOL]HGWRPHHWWKHVSLULWRIWKH8&/*LQFRQWULEXWLQJWRWKH PRQLWRULQJUHSRUWSURJUHVVDWWKHORFDODQGUHJLRQDOOHYHOV

/RFDO*RYHUQPHQWVIRU6XVWDLQDELOLW\ ,&/(,

8SRQWKHWUDQVODWLRQRIWKH6'*VLVFRPSOHWHG1HZ7DLSHL&LW\VKDOOEHDEOHWR PRUHSURDFWLYHO\LQWURGXFHDFWLRQVSHUWDLQLQJWRWKH6'*VVXFKDVUHQHZDEOH

HQHUJ\ 6'* WUDQVLWLRQIURPDFLW\RILQGXVWU\WRRIVXVWDLQDEOHHFRQRP\ 6'* &KDSWHU VXVWDLQDEOHSXEOLFSURFXUHPHQWQHWZRUNWRFRQWULEXWHWR*UHHQ(FRQRP\ 6'* WKH915WKDWFRQQHFWVFOLPDWHDFWLRQVZLWKFLW\GHYHORSPHQW 1'&VDQG6'* WKH DJHQGDVRILVODQGDQGRIRFHDQIRUWKHFLW\ 6'* DQGLPSOHPHQWDWLRQRIELRGLYHUVLW\ JRDOLQWKHFLW\ 6'*

:LWKWKHVWUDWHJLFWRROVPHQWLRQHGDERYH1HZ7DLSHL&LW\LVDEOHWRHQVXUHWKHDSSOLFDWLRQ DQGUHYLWDOL]DWLRQRIUHVRXUFHV$VVXFK1HZ7DLSHL&LW\LVWREHFRPHWKHEHQFKPDUNIRUWKH FLWLHVZRUOGZLGHHQJDJLQJPXOWLSOHVWUDWHJLFFRRSHUDWLRQGLDORJXHVLQFOXGLQJFDSDFLW\EXLOGLQJ DFWLYLWLHVFRRSHUDWLRQUHVHDUFKHVNQRZOHGJHH[FKDQJHQHWZRUNLQJDQGPDUNHWLQJZLWK GLƈHUHQWDUHDVUHJLRQVDURXQGWKHZRUOGXQGHUWKHIUDPHZRUNVRIJOREDOQHWZRUNV

&KDSWHU :D\IRUZDUGIRU 1HZ7DLSHL&LW\ŇV 6XVWDLQDELOLW\7UDQVLWLRQ

&KDSWHU ӕ :D\IRUZDUGIRU1HZ7DLSHL&LW\ŇV6XVWDLQDELOLW\7UDQVLWLRQ

:D\IRUZDUGIRU1HZ7DLSHL&LW\ŇV6XVWDLQDELOLW\7UDQVLWLRQ

1HZ7DLSHL&LW\PDUFKWRZDUGVXVWDLQDELOLW\WUDQVLWLRQZLWKJOREDOFLWLHV

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

1HZ7DLSHL&LW\ 9ROXQWDU\/RFDO5HYLHZIRU6'*V

'HHS/RFDOL]DWLRQ ([SDQVLRQRI&LW\$VVHVVPHQW7RROŇV'HYHORSPHQW

7KHSROLF\RZQHUVKLSRIORFDODQGUHJLRQDOJRYHUQPHQWV 7KHVXVWDLQDEOHGHYHORSPHQWWRROVHPSOR\HGE\ DQGWKHSDUWQHUVVKDOOEHZLGHUWKDQNVWRWKHGHHSHQLQJ 1HZ7DLSHL&LW\VKDOOIDFLOLWDWHWKHSODQQLQJDQG RIORFDOL]DWLRQSURFHVVHV1HZ7DLSHL&LW\VKDOOFRQWLQXH DVVHVVPHQWRIRWKHUFLWLHVŇGHYHORSPHQWRUDUH WRGHHSHQLWVGHYHORSPHQWZLWKŉ/LYDEOH&LW\Ŋ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ƉFUHJLRQ

:LWKWLJKWHULQWHJUDWLRQEHWZHHQWKHORFDODQGWKH &RQWLQXDWLRQRIWKH'LVWULEXWHG&RRSHUDWLRQ QDWLRQDOJRYHUQPHQWVWKH81DQGWKHLQWHUQDWLRQDO DPRQJ&LWLHV FRPPLWWHHZLOODOVRVXSSO\PRUHFKDQQHOVWRDUHDV DQGUHJLRQVWRLQWURGXFHFRQWULEXWLRQVVRDVWR 7RIDFLOLWDWHLQWHUQDWLRQDOSDUWQHUVKLSDQGSHHUWR H[SHGLWHWKH6'FRRSHUDWLRQ1HZ7DLSHL&LW\ SHHUXUEDQNQRZOHGJHH[FKDQJHWKHUHVSHFWLYHIHDWXUH ZLOODOVRFRQWLQXHWRZRUNZLWKDQGSURDFWLYHO\ GHYHORSPHQWRIFLWLHVZLOODFFHOHUDWHDVZHOO7KHDJHRI SDUWLFLSDWHLQWHUQDWLRQDOFLW\QHWZRUNV GLYHUVLƉHGFLW\GHYHORSPHQWLVDWWKHFRUQHU1HZ7DLSHL &LW\VKDOOSURDFWLYHO\FRGHYHORSPHQWIHDWXUHV +HDOWK 5HVLOLHQFH6PDUWDQG/LYDELOLW\ ZLWKRWKHUFLWLHV &KDSWHU 1HZ7DLSHL&LW\H[SHFWVDOOPHPEHUVRILWVFLWL]HQU\WRZRUNZLWKWKH&LW\ *RYHUQPHQWIRUDVXVWDLQDEOHIXWXUHVRWKDWHYHU\LGHDOOLIHLQWKHDUHQDRIFLW\PD\ EHUHDOL]HG1HZ7DLSHL&LW\IXUWKHUORRNVIRUZDUGWRPDUFKRQWKHSDWKWRLGHDO OLIHKDQGDQGKDQGZLWKHDFKDQGHYHU\JOREDOFLWL]HQWKDWEHOLHYHVLQWKHWUHQGRI 6XVWDLQDEOH'HYHORSPHQWRQWKHSODQHW

5HIHUHQFHV

Ŏ 81+DELWDW&LWLHVDQG&OLPDWH&KDQJH*OREDO5HSRUWRQ+XPDQ6HWWOHPHQWV

Ŏ 6'61:K\WKH:RUOG1HHGVDQ8UEDQ6XVWDLQDEOH'HYHORSPHQW*RDO

Ŏ 8QLWHG1DWLRQV7UDQVIRUPLQJRXU:RUOG7KH$JHQGDIRU6XVWDLQDEOH 'HYHORSPHQW

Ŏ *OREDO7DVNIRUFHRI/RFDODQG5HJLRQDO*RYHUQPHQWV$OO6'*VDUH/RFDO 7RZDUGVDQ$FWLRQ$JHQGDLQ+DELWDW,,,

Ŏ ,&/(,Ń/RFDO*RYHUQPHQWVIRU6XVWDLQDELOLW\&LWLHVDQGWKH6XVWDLQDEOH 'HYHORSPHQW*RDOV,&/(,%5,(),1*6+((78UEDQ,VVXHV1R

Ŏ *OREDO7DVNIRUFHRI/RFDODQG5HJLRQDO*RYHUQPHQWV5RDGPDS)RU/RFDOL]LQJ WKH6'*V,PSOHPHQWDWLRQDQG0RQLWRULQJDW6XEQDWLRQDO/HYHO

Ŏ 2YHUVHDV'HYHORSPHQW,QVWLWXWH 2', 7KH6'*VDWFLW\OHYHO0XPEDLŇV H[DPSOHZRUNLQJSDSHU

Ŏ 8QLWHG1DWLRQV7KH6XVWDLQDEOH'HYHORSPHQW*RDOV5HSRUW

Ŏ ([HFXWLYH

Ŏ ,QWHUQDWLRQDOFRXQFLOIRU6FLHQFH&LWLHVDQG'LVDVWHU5LVN5HGXFWLRQ

Ŏ /RFDOL]LQJ6'*V/HDUQLQJ0RGXHO/RFDOL]LQJWKH6'*V

Ŏ /RFDOL]LQJ6'*V/HDUQLQJ0RGXOH7HUULWRULDO3ODQQLQJWR$FKLHYHWKH6'*V

Ŏ 8QLWHG1DWLRQV7KH6XVWDLQDEOH'HYHORSPHQW*RDOV5HSRUW

Ŏ 8&/*1DWLRQDODQG6XE1DWLRQDO*RYHUQPHQWVRQWKH:D\7RZDUGVWKH /RFDOL]DWLRQRIWKH6'*V/RFDODQG5HJLRQDO*RYHUQPHQWVŇ5HSRUW7R7KH +/3)VW5HSRUW

Ŏ 8QLWHG1DWLRQV7KH6XVWDLQDEOH'HYHORSPHQW*RDOV5HSRUW

Ŏ 1<&0D\RUŇV2IILFHIRU,QWHUQDWLRQDO$IIDLUV9ROXQWDU\/RFDO5HYLHZ1HZ

Ŏ 8&/*7RZDUGVWKH/RFDOL]DWLRQRIWKH6'*V/RFDODQG5HJLRQDO*RYHUQPHQWVŇ 5HSRUW7R7KH+/3)QG5HSRUW

Ŏ 81+DELWDW7UDFNLQJ3URJUHVV7RZDUGV,QFOXVLYH6DIH5HVLOLHQWDQG 6XVWDLQDEOH&LWLHVDQGKXPDQ6HWWOHPHQWV6'*6\QWKHVLV5HSRUW+LJK/HYHO 3ROLWLFDO)RUXP

Ŏ 81(FRQRPLFDQG6RFLDO&RPPLVVLRQIRU$VLDDQGWKH3DFLILF 81(6&$3 $VLD$QG7KH3DFLILF6'*3URJUHVV5HSRUW 3XEOLVKHU物1HZ7DLSHL&LW\*RYHUQPHQW 7LWOH物1HZ7DLSHL&LW\9ROXQWDU\/RFDO5HYLHZ 3ODQQHU物3ODQE,QF (GLWLRQ物QG(GLWLRQ6HSWHPEHU /HDG6XSHUYLVRUV物6HFUHWDULDW1HZ7DLSHL&LW\*RYHUQPHQW &RS\ULJKWE\1HZ7DLSHL&LW\*RYHUQPHQW$OOULJKWVUHVHUYHG 3ULQWLQ7DLZDQ5HSXEOLFRI&KLQD

1RW3DUWRIWKLVSXEOLFDWLRQPD\EHUHSURGXFHGVWRUHGLQRULQWURGXFHG LQWRDUHWULHYDOV\VWHPRUWUDQVPLWWHGLQDQ\IRUPRUE\DQ\PHDQV HOHFWURQLFPHFKDQLFDOSKRWRFRS\LQJUHFRUGLQJRURWKHUZLVH ZLWKRXW WKHSULRUSHUPLVVLRQRIWKHSXEOLVKHU

5HTXHVWVIRUSHUPLVVLRQVKRXOGEHGLUHFWHGWR1HZ7DLSHL&LW\ *RYHUQPHQW6HFUHWDULDW1R6HF=KRQJVKDQ5G%DQTXLDR 'LVW1HZ7DLSHL7DLZDQ 52&

7KHSDSHUXVHGLQWKLVSXEOLFDWLRQPHHWVWKHUHTXLUHPHQWVRIWKH,62 /RQJ/LIH )RUHVW6WHZDUGVKLS&RXQFLO )6& VWDQGDUGDQG ZLWKWKHPDWHULDORI(OHPHQWDO&KORULQH)UHH 2052.57

4,004,598