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Phnom Penh, Kingdom of Cambodia $QQXDO5HSRUW PO Box 411 | Postcode: 12253 Tel: 023 880 942 Email: [email protected] Website: www.amret.com.kh &DOO&HQWHU Contents
2XU3URƬOH
Vision and Mission 01
Key Figures 02
The Advans Group in Brief 03
Amret Milestones 04
Message from the Chairman 06
Board of Directors 08
Shareholders 12
Message from the CEO 14
Executive Committee 16
Our Brand Story 18
Organizational Chart 20
Our Performance
Business Performance 22
An Omni-Channel Approach 25
Risk Management 26
Clients’ Testimonials 30
Capacity Building 32
2XU&RUSRUDWH5HVSRQVLELOLW\ Environmental and Social Performance Management 38
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Tax Paid Report 42
Extracted Financial Statements 43
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Branch Network 52
5HJLRQDO2ƯFHV 53 Vision dŽ ďĞ ĂŶ ŽƵƚƐƚĂŶĚŝŶŐ ĮŶĂŶĐŝĂů ŝŶƐƟƚƵƟŽŶ ƚŚĂƚ ŝŵƉƌŽǀĞƐ ƚŚĞ ůŝǀŝŶŐ ƐƚĂŶĚĂƌĚƐ ŽĨ ƚŚĞ ƉŽƉƵůĂƟŽŶ ĂŶĚ ĐŽŶƚƌŝďƵƚĞƐ ƚŽ ƚŚĞ ĞĐŽŶŽŵŝĐ ĂŶĚ ƐŽĐŝĂůĚĞǀĞůŽƉŵĞŶƚŽĨĂŵďŽĚŝĂ͘
Mission dŽƉƌŽǀŝĚĞĂǁŝĚĞƌĂŶŐĞŽĨĮŶĂŶĐŝĂů ƐĞƌǀŝĐĞƐĨŽƌůŽǁͲŝŶĐŽŵĞƉĞŽƉůĞĂƐ ǁĞůů ĂƐ ŵŝĐƌŽ͕ ƐŵĂůů ĂŶĚ ŵĞĚŝƵŵ ĞŶƚĞƌƉƌŝƐĞƐ ʹ ǁŚŝůĞ Ăƚ ƚŚĞ ƐĂŵĞ ƟŵĞ ĂĐŚŝĞǀŝŶŐ Ă ŚŝŐŚ ůĞǀĞů ŽĨ ĮŶĂŶĐŝĂůĂŶĚƐŽĐŝĂůƉĞƌĨŽƌŵĂŶĐĞ͘
2XU3URƬOH Annual Report 2019 01 Key Figures
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2017 2018 2019 $PRXQWƬJXUH 139,206 90,045 (in million KHR) 110,626 'HSRVLW2XWVWDQGLQJ /RDQ3RUWIROLR 2,207,279 3,970,856 3,171,811 1,824,050 2,788,131 1,413,618 7RWDO$VVHWV 7RWDO(TXLW\ 707,727 574,709 4,687,737 506,789 3,896,806 3,254,094 02 2XU3URƬOH Annual Report 2019 The Advans Group in Brief 9 &ŝŶĂŶĐŝĂůŝŶƐƟƚƵƟŽŶƐ Advans International HQ Advans Pakistan Advans Tu nisie 7,614 ^ƚĂī Advans Myanmar Advans La Fayette MFB - Nigeria Amret Cambodia 283 WŽŝŶƚƐŽĨƐĂůĞ Advans Côte d’lvoire Advans Cameroun Advans Ghana 1,024,411 ůŝĞŶƚƐ Advans Banque Congo h^Ψ͛ϬϬϬ 1,219,237 KƵƚƐƚĂŶĚŝŶŐůŽĂŶƉŽƌƞŽůŝŽ h^Ψ͛ϬϬϬ 682,592 dŽƚĂůĚĞƉŽƐŝƚƐ (Data as of December 2019) ŵƌĞƚ ŝƐ Ă ƐƵďƐŝĚŝĂƌLJ ŽĨ ƚŚĞ ĚǀĂŶƐ 'ƌŽƵƉ͕ Ă ůĞĂĚŝŶŐ ŶŽĂĐĐĞƐƐƚŽĨŽƌŵĂůĮŶĂŶĐŝĂůƐĞƌǀŝĐĞƐƚŚƌŽƵŐŚƉƌŽǀŝĚŝŶŐ ŝŶƚĞƌŶĂƟŽŶĂůŵŝĐƌŽĮŶĂŶĐĞŐƌŽƵƉ͘ ƚĂŝůŽƌĞĚĮŶĂŶĐŝĂůƐĞƌǀŝĐĞƐŝŶĂƐƵƐƚĂŝŶĂďůĞĂŶĚƌĞƐƉŽŶƐŝďůĞ ŵĂŶŶĞƌ͘ ĚǀĂŶƐ͛ ǀŝƐŝŽŶ ŝƐ ƚŽ ďƵŝůĚ Ă ŵŽĚĞů ŐƌŽƵƉ ŽĨ ĮŶĂŶĐŝĂů ŝŶƐƟƚƵƟŽŶƐ ǁŚŝĐŚ ĐŽŶƚƌŝďƵƚĞ ƚŽ ƐƚƌĞŶŐƚŚĞŶŝŶŐ ůŽĐĂů ĚǀĂŶƐŝŶƐƟƚƵƟŽŶƐƐŚĂƌĞƚŚĞƐĂŵĞǀĂůƵĞƐ͕ƉƌŝŶĐŝƉůĞƐĂŶĚ ďƵƐŝŶĞƐƐĞƐ͕ ĐƌĞĂƟŶŐ ĂŶĚ ƐƵƐƚĂŝŶŝŶŐ ũŽďƐ ĂŶĚ ŝŵƉƌŽǀŝŶŐ ŵĞƚŚŽĚƐ͘ dŚĞ ĚǀĂŶƐ 'ƌŽƵƉ ŝƐ ĐƵƌƌĞŶƚůLJ ĂĐƟǀĞ ŝŶ ŶŝŶĞ ůŝǀŝŶŐ ƐƚĂŶĚĂƌĚƐ ŝŶ ŽƌĚĞƌ ƚŽ ĨŽƐƚĞƌ ƉƌŝǀĂƚĞ ƐĞĐƚŽƌͲůĞĚ ĐŽƵŶƚƌŝĞƐŝŶĨƌŝĐĂĂŶĚƐŝĂ͗ĂŵďŽĚŝĂ͕ĂŵĞƌŽŽŶ͕ƀƚĞ ĞĐŽŶŽŵŝĐĂŶĚƐŽĐŝĂůĚĞǀĞůŽƉŵĞŶƚŝŶĨƌŝĐĂ͕ƚŚĞDŝĚĚůĞͲ Ě͛/ǀŽŝƌĞ͕ ĞŵŽĐƌĂƟĐ ZĞƉƵďůŝĐ ŽĨ ŽŶŐŽ͕ 'ŚĂŶĂ͕ EŝŐĞƌŝĂ͕ ĂƐƚĂŶĚƐŝĂ͘ WĂŬŝƐƚĂŶ͕dƵŶŝƐŝĂĂŶĚDLJĂŶŵĂƌ͘ ůƚŚŽƵŐŚƐŵĂůůďƵƐŝŶĞƐƐĞƐƉůĂLJĂƉŝǀŽƚĂůƌŽůĞŝŶƉƌŽŵŽƟŶŐ ĚǀĂŶƐ ŚĂƐ ĐƌĞĂƚĞĚ ƐƚƌŽŶŐ͕ ŐƌŽƵƉ ĚĞƉĂƌƚŵĞŶƚƐ ĂŶĚ ĞĐŽŶŽŵŝĐ ĚĞǀĞůŽƉŵĞŶƚ ŝŶ ĚĞǀĞůŽƉŝŶŐ͕ ĞŵĞƌŐŝŶŐ ĂŶĚ ďƵƐŝŶĞƐƐ ůŝŶĞƐ Ăƚ ĚǀĂŶƐ /ŶƚĞƌŶĂƟŽŶĂů ŝŶ WĂƌŝƐ͕ &ƌĂŶĐĞ͕ ĨƌŽŶƟĞƌ ĐŽƵŶƚƌŝĞƐ͕ ƚŚĞLJ ĂƌĞ ŽŌĞŶ ĞdžĐůƵĚĞĚ ĨƌŽŵ ƚŚĞ ƚŽ ŐƵŝĚĞ ĂŶĚ ďĂĐŬ ƐƵďƐŝĚŝĂƌŝĞƐ ĚĞǀĞůŽƉŵĞŶƚ͖ ƚŚĞƐĞ ĮŶĂŶĐŝĂů ŵĂŝŶƐƚƌĞĂŵ͘ ĚǀĂŶƐ ŵŝƐƐŝŽŶ ŝƐ ƚŽ ƌĞƐƉŽŶĚ ƚŽ ĚĞƉĂƌƚŵĞŶƚƐƐƵƉƉŽƌƚ͕ŽǀĞƌƐĞĞĂŶĚƐĞƚƐƚĂŶĚĂƌĚƐĨŽƌƚŚĞ ƚŚĞŶĞĞĚĨŽƌĮŶĂŶĐŝĂůƐĞƌǀŝĐĞƐŽĨƚŚĞƐĞƐŵĂůůďƵƐŝŶĞƐƐĞƐ ŐƌŽƵƉ͕ƉƌŽǀŝĚŝŶŐŐƵŝĚĂŶĐĞ͕ƌĞƐŽƵƌĐĞƐĂŶĚĞdžƉĞƌƟƐĞ͘ ĂŶĚ ŽƚŚĞƌ ƉŽƉƵůĂƟŽŶƐ ǁŚŽ ŚĂǀĞ ŝůůͲĂĚĂƉƚĞĚ͕ ůŝŵŝƚĞĚ Žƌ 2XU3URƬOH Annual Report 2019 03 Amret 0LOHVWRQHV 2019 ŵƌĞƚ ŵĂƌŬĞĚ ĂŶ ŝŵƉŽƌƚĂŶƚ step in its development with ƚŚĞ ůĂƵŶĐŚ ŽĨ ŝƚƐ ƌĞĨƌĞƐŚĞĚ ďƌĂŶĚ ĂŶĚ Ă ŶĞǁ ůŽŐŽ͘ /ƚƐ 2018 ĂƐƐĞƚƐƌĞĂĐŚĞĚh^ϭďŝůůŝŽŶ͘ ŵƌĞƚ ŝƐ Ă ĨĂŵŽƵƐ ŶĂŵĞ ƌĞƐŽŶĂƟŶŐĂƐĂŶŽƵƚƐƚĂŶĚŝŶŐ ĮŶĂŶĐŝĂů ŝŶƐƟƚƵƟŽŶ ĂŵŽŶŐ ƚŚĞ ƚŽƉ ϭϬ ĮŶĂŶĐŝĂů 2015 ŝŶƐƟƚƵƟŽŶƐŝŶĂŵďŽĚŝĂ͘dŚĞ ĐŽŵƉĂŶLJ ŝƐ ƉƌŽƵĚ ƚŽ ďĞ ƚŚĞ ŵƌĞƚ ďĞĐŽŵĞƐ Ă ĨƵůů ďĞƐƚ ŝŶ ĐůĂƐƐ ĨŽƌ ƉŽƌƞŽůŝŽ ƐƵďƐŝĚŝĂƌLJ ŽĨ ƚŚĞ ĚǀĂŶƐ ƋƵĂůŝƚLJ͘ 'ƌŽƵƉ ŝŶ DĂƌĐŚ͘ ĚǀĂŶƐ ^ ďĞĐŽŵĞƐ Ă ŵĂũŽƌŝƚLJ ƐŚĂƌĞŚŽůĚĞƌ͖&DKĂŶĚ/&ĂƌĞ ƚŚĞ ƚǁŽ ƌĞĨĞƌĞŶĐĞ ƐŚĂƌĞŚŽůĚĞƌƐ͘ /Ŷ ƵŐƵƐƚ͕ 2009 ŵƌĞƚ ƌŽůůƐ ŽƵƚ ŵŽďŝůĞ ĮŶĂŶĐŝĂů ƐĞƌǀŝĐĞƐ͘ ŵƌĞƚ ŵƌĞƚ ŽďƚĂŝŶƐ Ă ůŝĐĞŶƐĞ ƚŽ ƉĂƌƟĐŝƉĂƚĞƐ ŝŶ ĚǀĂŶƐ ŽƉĞƌĂƚĞ ĂƐ Ă ĚĞƉŽƐŝƚͲƚĂŬŝŶŐ internal and external 10-year D&/ŝŶ:ĂŶƵĂƌLJ͘LJƚŚĞĞŶĚŽĨ ĂŶŶŝǀĞƌƐĂƌLJĐĞůĞďƌĂƟŽŶƐ͘ ƚŚĞ LJĞĂƌ͕ Ăůů ŵƌĞƚ ďƌĂŶĐŚĞƐ ĂƌĞ ƌĞĂĚLJ ƚŽ ďĞŐŝŶ ƚŚĞ ĐŽůůĞĐƟŽŶŽĨƉƵďůŝĐƐĂǀŝŶŐƐ͘ 2004 EMT is renamed “Amret” on :ƵŶĞ ϭϰ͘ >&W ďƵLJƐ ŽƵƚ WƌŽƉĂƌĐŽ͘ 2001 ŵƌĞƚ ; Dd Ăƚ ƚŚĂƚ ƟŵĞͿ ƌĞĐĞŝǀĞƐ ŝƚƐ D&/ ůŝĐĞŶƐĞ ĨƌŽŵ ƚŚĞ EĂƟŽŶĂů ĂŶŬ ŽĨ ĂŵďŽĚŝĂ͘ 1991 GRET, a French NGO, sets up an experimental project to deliver microcredit to the ƌƵƌĂůƉŽƉƵůĂƟŽŶŽĨĂŵďŽĚŝĂ͘ dŚĞ ĮƌƐƚ ĞdžƉĞƌŝŵĞŶƚĂů ƉŚĂƐĞ is launched with a single ĮŶĂŶĐŝĂů ƐĞƌǀŝĐĞ ŬŶŽǁŶ ĂƐ ^ŽůŝĚĂƌŝƚLJƌĞĚŝƚ͘ 04 2XU3URƬOH Annual Report 2019 $PUHW+HDG2ƯFH 2XU3URƬOH Annual Report 2019 05 &ODXGH )$/*21 Chairman, Amret Director, Advans SA dŚĞůĞŶĚŝŶŐŝŶĚƵƐƚƌLJĐŽŶƟŶƵĞĚƚŽĚĞǀĞůŽƉŝŶϮϬϭϵ͕ǁŝƚŚ ŽǀĞƌ ϯϬй ŐƌŽǁƚŚ ĨŽƌ ƚŚĞ ŵŝĐƌŽĮŶĂŶĐĞ ƐĞĐƚŽƌ͕ ĂŶĚ ƚŚŝƐ ƚƌĞŶĚŝƐĞdžƉĞĐƚĞĚƚŽůĂƐƚŝŶƚŽϮϬϮϬ͘KǀĞƌͲŝŶĚĞďƚĞĚŶĞƐƐŝƐ ƐƟůůĂŵĂũŽƌƉƌĞŽĐĐƵƉĂƟŽŶĨŽƌƚŚĞĂƵƚŚŽƌŝƟĞƐ͕ǁŝƚŚƚŚĞ ŝŵƉůĞŵĞŶƚĂƟŽŶ ŽĨ ƐĞǀĞƌĂů ƉŽůŝĐŝĞƐ ŽŶŐŽŝŶŐ ƐŝŶĐĞ ϮϬϭϳ ƐƵĐŚ ĂƐ ŝŶƚƌŽĚƵĐŝŶŐ ŚŝŐŚĞƌ ƐŽůǀĞŶĐLJ ĂŶĚ ůŝƋƵŝĚŝƚLJ ƌĂƟŽƐ ĂŶĚĐŚĂŶŐŝŶŐƉƌŽǀŝƐŝŽŶŝŶŐƌƵůĞƐ͘ /ŶƚŚĞŵŝĐƌŽĮŶĂŶĐĞƐĞĐƚŽƌ͕ƌĂƉŝĚĐŚĂŶŐĞƐĂƌĞĐŽŶƟŶƵŝŶŐ ǁŝƚŚ ƐĞǀĞƌĂů DŝĐƌŽĮŶĂŶĐĞ ĞƉŽƐŝƚͲƚĂŬŝŶŐ /ŶƐƟƚƵƟŽŶƐ ;D/ƐͿ ďĞŝŶŐ ďŽƵŐŚƚ ďLJ ĨŽƌĞŝŐŶ ďĂŶŬƐ͘ dŚĞƌĞ ŝƐ Ă ŚŝŐŚ ƌŝƐŬƚŚĂƚƚŚĞƐĞD/ƐǁŝůůƐŚŝŌƚŽǁĂƌĚƐƚŚĞƐƚĂŶĚĂƌĚƌĞƚĂŝů ďĂŶŬŝŶŐŵŽĚĞů͕ůĞĂǀŝŶŐďĞŚŝŶĚůŽǁͲŝŶĐŽŵĞĨĂŵŝůŝĞƐĂŶĚ ŵŝĐƌŽ ĂŶĚ ƐŵĂůů ĞŶƚĞƌƉƌŝƐĞƐ͘ ^ŽŵĞ D/Ɛ͕ ůŝŬĞ ŵƌĞƚ͕ ŚĂǀĞĐŚŽƐĞŶƚŽƌĞŵĂŝŶĨŽĐƵƐĞĚŽŶƚŚĞŝƌŵŝƐƐŝŽŶƚŽƐĞƌǀĞ ůŽǁŝŶĐŽŵĞĐůŝĞŶƚƐĂŶĚŵŝĐƌŽĂŶĚƐŵĂůůďƵƐŝŶĞƐƐĞƐǁŝƚŚ ůŝŵŝƚĞĚĂĐĐĞƐƐƚŽƐĞƌǀŝĐĞƐ͘ŽŵƉĞƟƟŽŶŚŽǁĞǀĞƌƌĞŵĂŝŶƐ ŝŶƚĞŶƐĞŝŶƚŚĞŵĂƌŬĞƚǁŚŝĐŚŚĂƐůĞĚƚŽƐŽŵĞŝƌƌĞƐƉŽŶƐŝďůĞ ůĞŶĚŝŶŐƉƌĂĐƟĐĞƐ͘dŽĐŽŵďĂƚƚŚŝƐ͕ŵƌĞƚŚĂƐĂĚǀŽĐĂƚĞĚ ͕ŵƌĞƚƌĞŵĂŝŶĞĚĨŽĐƵƐĞĚŽŶŝŶŝƚƐŵŝƐƐŝŽŶ /ŶϮϬϭϵ ƚŚĞ ĚĞĮŶŝƟŽŶ ŽĨ ĐůĞĂƌ ZĞƐƉŽŶƐŝďůĞ >ĞŶĚŝŶŐ 'ƵŝĚĞůŝŶĞƐ ƚŽƉƌŽǀŝĚĞƌĞƐƉŽŶƐŝďůĞĂŶĚĂĚĂƉƚĞĚĮŶĂŶĐŝĂůƐĞƌǀŝĐĞƐƚŽ ĨŽƌD&/ƐĂŶĚD/ƐŝŶĐŽůůĂďŽƌĂƟŽŶǁŝƚŚƚŚĞĂŵďŽĚŝĂŶ ůŽǁŝŶĐŽŵĞƉŽƉƵůĂƟŽŶƐ͕D^D ƐĂŶĚĨĂƌŵĞƌƐ͕ĞdžƉĂŶĚŝŶŐ DŝĐƌŽĮŶĂŶĐĞ ƐƐŽĐŝĂƟŽŶ ;DͿ͘ ĞƐƉŝƚĞ ƚŚĞƐĞ ƐĞůĨͲ ŝƚƐŽƵƚƌĞĂĐŚƚŽĂůŵŽƐƚŚĂůĨĂŵŝůůŝŽŶĐůŝĞŶƚƐŝŶĂŵďŽĚŝĂ͕ ƌĞŐƵůĂƟŽŶƐŶŽƚĂƉƉůLJŝŶŐƚŽďĂŶŬƐ͕ƚŚĞŶĞǁŐƵŝĚĞůŝŶĞƐŚĂǀĞ ďƌŽĂĚĞŶŝŶŐ ƚŚĞ ƌĂŶŐĞ ŽĨ ŝƚƐ ƐĞƌǀŝĐĞƐ ĂŶĚ ĚŝǀĞƌƐŝƚLJ ŽĨ ŚĂĚƉŽƐŝƟǀĞďĞŶĞĮƚƐ͕ŚĞůƉŝŶŐƚŽůŝŵŝƚƚŚĞŶƵŵďĞƌŽĨŚŝŐŚ ĚĞůŝǀĞƌLJĐŚĂŶŶĞůƐ͘dŚĞŝŶƐƟƚƵƟŽŶĂůƐŽŵĂŶĂŐĞĚƚŽƐƵƐƚĂŝŶ ƌŝƐŬĐƌĞĚŝƚƐĂŶĚĚŝƐĐŽƵƌĂŐŝŶŐŝŵƉƌŽƉĞƌĐƌĞĚŝƚƉƌĂĐƟĐĞƐ͘Ɛ ĂŶĞdžĐĞůůĞŶƚůĞǀĞůŽĨŽƉĞƌĂƟŽŶĂůĂŶĚĮŶĂŶĐŝĂůĞĸĐŝĞŶĐLJ͕ ĂƌĞƐƵůƚ͕ŽǀĞƌĂůůĐƌĞĚŝƚƌŝƐŬĨŽƌƚŚĞƐĞĐƚŽƌƌĞŵĂŝŶĞĚƐƚĂďůĞ ŝŶ ƐƉŝƚĞ ŽĨ ŝŶĐƌĞĂƐĞĚ ĐŽŵƉĞƟƟŽŶ ŽŶ ƚŚĞ ŵĂƌŬĞƚ͘ ŝŶϮϬϭϵ͘ KǀĞƌĂůů ĞĐŽŶŽŵŝĐ ĞdžƉĂŶƐŝŽŶ ĐŽŶƟŶƵĞĚ ĐŽŵĨŽƌƚĂďůLJ ŝŶ ĂŵďŽĚŝĂŝŶϮϬϭϵǁŝƚŚŐƌŽǁƚŚƌĞŵĂŝŶŝŶŐĂƚϳй͕ŚŝŐŚĞƌ dŚĂŶŬƐ ƚŽ ŵƌĞƚ͛Ɛ ĞīŽƌƚƐ ĂŶĚ ĂƉƉůŝĐĂƟŽŶ ŽĨ ƚŚĞ D ƚŚĂŶ ƐƵƌƌŽƵŶĚŝŶŐ sŝĞƚŶĂŵ ;ϲ͘ϱйͿ͕ dŚĂŝůĂŶĚ ;Ϯ͘ϴϳйͿ ŐƵŝĚĞůŝŶĞƐ͕ ĐƌĞĚŝƚ ƌŝƐŬ ŝŵƉƌŽǀĞĚ ŽǀĞƌ ƚŚĞ LJĞĂƌ ǁŝƚŚ ĂŶĚ DLJĂŶŵĂƌ ;ϲ͘ϮйͿ¹͘ 'ƌŽǁƚŚ ŝƐ ŚŽǁĞǀĞƌ ĞdžƉĞĐƚĞĚ ƚŽ ƉŽƌƞŽůŝŽ ƋƵĂůŝƚLJ Ăƚ ĂŶ ĞdžĐĞůůĞŶƚ ůĞǀĞů͕ ĞǀĞŶ ĐŽŵƉĂƌĞĚ ƐůŽǁ ƐŝŐŶŝĮĐĂŶƚůLJ ŝŶ ϮϬϮϬ ĚƵĞ ƚŽ ƐĞǀĞƌĂů ƌŝƐŬƐ ĂīĞĐƟŶŐ ƚŽ ϮϬϭϴ͘ ŵƌĞƚ͛Ɛ ĐŽŵŵŝƚŵĞŶƚ ƚŽ ĞŶƐƵƌŝŶŐ ƚŚĂƚ ĐůŝĞŶƚƐ ƚŚĞ ĐŽƵŶƚƌLJ͕ ŝŶĐůƵĚŝŶŐ ƚŚĞ ƉĂƌƟĂů ǁŝƚŚĚƌĂǁĂů ŽĨ ƚĂƌŝī ĂƌĞƉƌŽƚĞĐƚĞĚǁĂƐĂůƐŽĚĞŵŽŶƐƚƌĂƚĞĚĚƵƌŝŶŐƚŚĞLJĞĂƌďLJ ƉƌĞĨĞƌĞŶĐĞƐƵŶĚĞƌƚŚĞ ƵƌŽƉĞĂŶhŶŝŽŶ͛Ɛ ǀĞƌLJƚŚŝŶŐƵƚ ƚŚĞƌĞŶĞǁĂůŽĨŝƚƐ^DZdůŝĞŶƚWƌŽƚĞĐƟŽŶĞƌƟĮĐĂƟŽŶ͘ ƌŵƐ; ͿƚƌĂĚĞƐĐŚĞŵĞĂŶĚƚŚĞŝŵƉĂĐƚŽĨŽǀŝĚͲϭϵŽŶ ŵƌĞƚǁŝůůĐŽŶƟŶƵĞƚŽĨŽĐƵƐŽŶŝƚƐĐŽƌĞŵŝƐƐŝŽŶǁŝƚŚƚŚĞ ƚŚĞĐŽƵŶƚƌLJĂŶĚŽŶƚŚĞƌĞŐŝŽŶ͘ ƵůƟŵĂƚĞŐŽĂůŽĨŝŵƉƌŽǀŝŶŐĐůŝĞŶƚƐ͛ůŝǀĞƐĂŶĚĐŽŶƚƌŝďƵƟŶŐ ƚŽ ĞĐŽŶŽŵŝĐ ĂŶĚ ƐŽĐŝĂů ĚĞǀĞůŽƉŵĞŶƚ ŝŶ ĂŵďŽĚŝĂ͘ dŚĞ Ɛ Ă ƌĞƐƉŽŶƐŝďůĞ ŵŝĐƌŽĮŶĂŶĐĞ ƉůĂLJĞƌ͕ ŵƌĞƚ ĐŽŶƟŶƵĞĚ D/ǁŝůůĂůƐŽŵĂŝŶƚĂŝŶŝƚƐƌŽůĞŽĨĂƉŝŽŶĞĞƌŝŶŐĨŽƌĐĞŝŶƚŚĞ ƚŽƉůĂLJĂŬĞLJƌŽůĞŝŶƚŚĞĚĞĮŶŝƟŽŶĂŶĚƉƌŽŵŽƟŽŶŽĨƐĞůĨͲ ƐĞĐƚŽƌ͕ƐĞƫŶŐƐƚĂŶĚĂƌĚƐŝŶƚĞƌŵƐŽĨƌĞƐƉŽŶƐŝďůĞƉƌĂĐƟĐĞƐ ƌĞŐƵůĂƟŽŶƚŽĞŶĐŽƵƌĂŐĞƌĞƐƉŽŶƐŝďůĞůĞŶĚŝŶŐŽǀĞƌƚŚĞLJĞĂƌ͘ ĂŶĚƉƌŽĮƚĂďŝůŝƚLJ͘ Ϸ ůů ƐƚĂƟƐƟĐƐ ĨƌŽŵ ƚŚĞ /D&͗ ŚƩƉƐ͗ͬͬĚĂƚĂ͘ŝŵĨ͘ ŽƌŐ͍ͬƐŬс&&ϲϬϮͲϳϯϴͲϰϳϱͲϴϵͲϱϭϱϬϯϯ ϲϲϮ 06 2XU3URƬOH Annual Report 2019 Message from the Chairman 'ŽŝŶŐĨŽƌǁĂƌĚ͕ŵƌĞƚǁŝůůĐĂƌƌLJŽŶƌĞƐƚƌƵĐƚƵƌŝŶŐ Ă ƐƵĸĐŝĞŶƚ ůĞǀĞů ŽĨ ůŝƋƵŝĚŝƚLJ͘ dŚĞ ŝŶƐƟƚƵƟŽŶ ŚĂƐ ŝƚƐ ŽƌŐĂŶŝnjĂƟŽŶ ǁŝƚŚ ƚŚĞ ĚŝŐŝƚĂůŝnjĂƟŽŶ ŽĨ ŝƚƐ ĂůƐŽĐŽŶĐĞŶƚƌĂƚĞĚŽŶĂĐĐĞůĞƌĂƟŶŐŝŶǀĞƐƚŵĞŶƚƐŝŶ ŽƉĞƌĂƟŽŶƐ ŝŶ ŽƌĚĞƌ ƚŽ ďĞƩĞƌ ƐĞƌǀĞ ŝƚƐ ĐůŝĞŶƚƐ ŝƚƐĚŝŐŝƚĂůƚƌĂŶƐĨŽƌŵĂƟŽŶƐŽĂƐƚŽĞŶƐƵƌĞƚŚĂƚŝƚĐĂŶ ĂŶĚ ŝŶĐƌĞĂƐĞ ŝƚƐ ĞĸĐŝĞŶĐLJ ĂƐ ƉĂƌƚ ŽĨ ƚŚĞ ŵƌĞƚн ƐĞƌǀĞĐůŝĞŶƚƐƌĞŵŽƚĞůLJƚŚƌŽƵŐŚĂůƚĞƌŶĂƟǀĞĐŚĂŶŶĞůƐ ƉƌŽŐƌĂŵ͘ dŚŝƐ ǁŝůů ĞŶĂďůĞ ŵƌĞƚ ƚŽ ƐĞƌǀĞ Ăůů ŝƚƐ ĂŶĚ ƉƌŽǀŝĚĞ ƐƚĂī ǁŝƚŚ ƚŚĞ ƚŽŽůƐ ƚŚĞLJ ŶĞĞĚ ƚŽ ƚĂƌŐĞƚ ƐĞŐŵĞŶƚƐ͕ ŝŶĐůƵĚŝŶŐ ƚŚŽƐĞ ŝŶ ůĞƐƐ ĚĞŶƐĞ ĞŶŚĂŶĐĞĐƵƐƚŽŵĞƌƐĞƌǀŝĐĞ͘ŵƌĞƚ͛ƐƌĂƉŝĚƌĞƐƉŽŶƐĞ ƌƵƌĂůĂƌĞĂƐǁŚĞƌĞŽƉĞƌĂƟŽŶƐĂƌĞĐŽƐƚůŝĞƌ͘ŵƌĞƚ͛Ɛ ƚŽƚŚĞĐƌŝƐŝƐƐŚŽǁƐŝƚƐƐƚƌĞŶŐƚŚĂŶĚƉƌĞƉĂƌĞĚŶĞƐƐ͕ ĚŝŐŝƚĂůƌŽĂĚŵĂƉŝŶĐůƵĚĞƐŝͿƵƉŐƌĂĚŝŶŐĐŽƌĞďĂŶŬŝŶŐ ĂŶĚŝƚǁŝůůĞŵĞƌŐĞǁŝƚŚĞǀĞŶƐƚƌŽŶŐĞƌĨŽƵŶĚĂƟŽŶƐ ƐLJƐƚĞŵƐ ƚŽ ĞŶƐƵƌĞ ƌĞůŝĂďŝůŝƚLJ ĂŶĚ ƐĐĂůĂďŝůŝƚLJ͖ ŝŝͿ ĨŽƌƚŚĞĨƵƚƵƌĞ͘ ďƵŝůĚŝŶŐĐĂƉĂďŝůŝƚLJŝŶĚĂƚĂĂŶĂůLJƟĐƐĂŶĚďƵƐŝŶĞƐƐ dŽ ĐŽŶĐůƵĚĞ / ǁŽƵůĚ ůŝŬĞ ƚŽ ƚŚĂŶŬ ŵƌĞƚ͛Ɛ ƐƚĂī͕ ŝŶƚĞůůŝŐĞŶĐĞƚŽŝŶĨŽƌŵĚĞĐŝƐŝŽŶŵĂŬŝŶŐƚŽŝŵƉƌŽǀĞ ďŽĂƌĚ ŵĞŵďĞƌƐ͕ ƐŚĂƌĞŚŽůĚĞƌƐ ĂŶĚ ƉĂƌƚŶĞƌƐ ĨŽƌ ƟŵĞͲƚŽͲŵĂƌŬĞƚĨŽƌƚĂŝůŽƌĞĚƐĞƌǀŝĐĞƐƚŽŽƵƌĐůŝĞŶƚƐ͖ LJŽƵƌ ĐŽŶƟŶƵĞĚ ďĂĐŬŝŶŐ ŽĨ ŵƌĞƚ͛Ɛ ŵŝƐƐŝŽŶ ĂŶĚ ŝŝŝͿŝŵƉƌŽǀŝŶŐƉƌŽĐĞƐƐĞƐƚŽďĞƩĞƌŵĂŶĂŐĞƌŝƐŬƐĂŶĚ ĚĞǀĞůŽƉŵĞŶƚ͘ ŵƌĞƚ ĐŽŶƟŶƵĞƐ ƚŽ ƐƚĂŶĚ ŽƵƚ ŐĂŝŶĞĸĐŝĞŶĐLJ͕ŝŶĐůƵĚŝŶŐĨŽƌƐƵƉƉŽƌƚĨƵŶĐƟŽŶƐ͖ĂŶĚ ĂƐ Ă ƌĞƐƉŽŶƐŝďůĞ ŵŝĐƌŽĮŶĂŶĐĞ ƉůĂLJĞƌ ƚŚĂŶŬƐ ƚŽ ŝǀͿĚĞǀĞůŽƉŝŶŐĂĐŽŵďŝŶĂƟŽŶŽĨƉŚLJƐŝĐĂůĂŶĚĚŝŐŝƚĂů LJŽƵƌ ĚĞĚŝĐĂƟŽŶ ĂŶĚ ĐŽŵŵŝƚŵĞŶƚ͘ /Ŷ ϮϬϮϬ ǁŝƚŚ ĐŚĂŶŶĞůƐ ƚŽ ŐŝǀĞ ĐůŝĞŶƚƐ ƚŚĞ ŽƉƟŽŶ ƚŽ ƚƌĂŶƐĂĐƚ ƚŚĞ ŽǀŝĚͲϭϵ ĐƌŝƐŝƐ ůĞĂĚŝŶŐ ƚŽ Ă ŐůŽďĂů ĞĐŽŶŽŵŝĐ ǁŚĞŶĞǀĞƌ ĂŶĚ ǁŚĞƌĞǀĞƌ ƚŚĞLJ ŶĞĞĚ͕ ĂƐ ǁĞůů ĂƐ ƌĞĐĞƐƐŝŽŶ͕ŵƌĞƚǁŝůůŵŽƌĞƚŚĂŶĞǀĞƌƉůĂLJĂĐƌŝƟĐĂů ŝŶŶŽǀĂƟǀĞĚŝŐŝƚĂůƉƌŽĚƵĐƚƐĂŝŵŝŶŐƚŽĨĂĐŝůŝƚĂƚĞƚŚĞ ƌŽůĞŝŶŚĞůƉŝŶŐĂŵďŽĚŝĂŶD^D ƐƚŽǁĞĂƚŚĞƌƚŚĞ ĂĐƋƵŝƐŝƟŽŶŽĨŶĞǁĐůŝĞŶƚƐĂŶĚŝŵƉƌŽǀĞůŽLJĂůƚLJ͘ ƐƚŽƌŵĂŶĚƌĞƐƚĂƌƚƚŚĞŝƌďƵƐŝŶĞƐƐĂĐƟǀŝƟĞƐ͘ŵƌĞƚ ŵƌĞƚ ǁŝůů ĂůƐŽ ĐŽŶƟŶƵĞ ƚŽ ƐƵƉƉŽƌƚ ƚŚĞ ǁŝůůƉƌŽǀŝĚĞƚĂŝůŽƌĞĚƐƵƉƉŽƌƚƚŽĞĂĐŚŽĨŝƚƐĐůŝĞŶƚƐ ĚĞǀĞůŽƉŵĞŶƚ ŽĨ ĚǀĂŶƐ DLJĂŶŵĂƌ͕ ŽƉĞŶĞĚ ŝŶ ĂŶĚĂĚĂƉƚŝƚƐƐĞƌǀŝĐĞƐĂĐĐŽƌĚŝŶŐƚŽƚŚĞŝƌĐŚĂŶŐŝŶŐ ϮϬϭϳ͕ďLJƐĞĐŽŶĚŝŶŐƐŽŵĞŽĨŝƚƐƐƚĂīĂŶĚŵĂŶĂŐĞƌƐ ŶĞĞĚƐ͘ ƚŽ ƐƵƉƉŽƌƚ ƚŚĞ ŐƌŽƵƉ͛Ɛ LJŽƵŶŐĞƐƚ ĂĸůŝĂƚĞ ĂŶĚ ďLJ ŶŽŵŝŶĂƟŶŐĂĚŝƌĞĐƚŽƌŽŶŝƚƐďŽĂƌĚ͘dŚĞDLJĂŶŵĂƌ &ODXGH)$/*21 ƐƵďƐŝĚŝĂƌLJ ŝƐ ƉƌŽĮƚĂďůĞ ĂŶĚ ŐƌŽǁŝŶŐ ƌĂƉŝĚůLJ͕ Chairman, Amret ƉƌŽǀŝĚŝŶŐ ĮŶĂŶĐŝĂů ƐĞƌǀŝĐĞƐ ƚŽ ƵŶĚĞƌƐĞƌǀĞĚ ƉŽƉƵůĂƟŽŶƐ͘ dŚƌŽƵŐŚ ƚŚŝƐ ĐŽŶƚƌŝďƵƟŽŶ͕ ŵƌĞƚ ŝƐ ŝŵƉĂĐƟŶŐĮŶĂŶĐŝĂůŝŶĐůƵƐŝŽŶďĞLJŽŶĚĂŵďŽĚŝĂ͘ ƚƚŚĞƟŵĞŽĨǁƌŝƟŶŐ͕ƚŚĞŽǀŝĚͲϭϵĐƌŝƐŝƐŝƐĂůƌĞĂĚLJ ŚĞĂǀŝůLJ ŝŵƉĂĐƟŶŐ ƚŚĞ ĂŵďŽĚŝĂŶ ĞĐŽŶŽŵLJ͕ ĞƐƉĞĐŝĂůůLJƚŚĞƚŽƵƌŝƐŵ͕ĐŽŶƐƚƌƵĐƟŽŶĂŶĚŐĂƌŵĞŶƚ ƚƌĂĚĞƐĞĐƚŽƌƐ͘dŚŝƐƐůŽǁĚŽǁŶŝƐĞdžƉĞĐƚĞĚƚŽůĂƐƚĂƚ ůĞĂƐƚƵŶƟůƚŚĞĞŶĚŽĨƚŚĞƚŚŝƌĚƋƵĂƌƚĞƌŽƌĞǀĞŶƚŚĞ ĞŶĚŽĨƚŚĞLJĞĂƌ͘ŵƌĞƚŚĂƐĂĐƚĞĚƋƵŝĐŬůLJƚŽĞŶƐƵƌĞ ƚŚĞ ƐĞĐƵƌŝƚLJ ŽĨ ĐůŝĞŶƚƐ ĂŶĚ ƐƚĂī͕ ǁŝƚŚ ŵŽƐƚ ƐƚĂī ǁŽƌŬŝŶŐƌĞŵŽƚĞůLJ͘dŚĞŝŶƐƟƚƵƟŽŶŚĂƐĨŽĐƵƐĞĚŽŶ ƵŶĚĞƌƐƚĂŶĚŝŶŐƚŚĞŝŵƉĂĐƚŽĨŽǀŝĚͲϭϵŽŶĐůŝĞŶƚ͛Ɛ ďƵƐŝŶĞƐƐ ĂĐƟǀŝƟĞƐ ĂŶĚ ĞĐŽŶŽŵŝĐ ƐŝƚƵĂƟŽŶƐ͕ ƉƌŽƉŽƐŝŶŐ ƚŚĞŵ Ă ŐƌĂĐĞ ƉĞƌŝŽĚ ƚŽ ƐƵƉƉŽƌƚ ƚŚĞŵ ƚŚƌŽƵŐŚ ƚŚĞ ĐƌŝƐŝƐ ŝĨ ŶĞĐĞƐƐĂƌLJ ƚŽ ĂůůĞǀŝĂƚĞ ƚŚĞ ĂĚĚŝƟŽŶĂů ďƵƌĚĞŶ ŽĨ ƌĞƉĂLJŝŶŐ ƚŚĞŝƌ ůŽĂŶ͘ ŵƌĞƚ ŚĂƐ ďĞĞŶ ĂďůĞ ƚŽ ƐƚĂďŝůŝnjĞ ŝƚƐ ƚŽƚĂů ĚĞƉŽƐŝƚƐ͕ ĐƵƚ ƵŶŶĞĐĞƐƐĂƌLJ ĞdžƉĞŶƐĞƐ ĂŶĚ ŚĂƐ ƐĞĐƵƌĞĚ ƐĞǀĞƌĂů ĞdžƚĞƌŶĂůĐƌĞĚŝƚůŝŶĞƐĨƌŽŵƉĂƌƚŶĞƌƐƚŽĞŶƐƵƌĞŝƚŚĂƐ 2XU3URƬOH Annual Report 2019 07 Board Members 08 2XU3URƬOH Annual Report 2019 7KH%RDUGRI'LUHFWRUVLVFXUUHQWO\FRPSULVHGRIHLJKWPHPEHUVWKUHHRIZKRP DUH LQGHSHQGHQW LQ FRPSOLDQFH ZLWK WKH 1DWLRQDO %DQN RI &DPERGLD 1%& UHJXODWLRQV 'U&ODXGH)$/*21 ůĂƵĚĞ&ĂůŐŽŶŝƐƚŚĞĨŽƵŶĚĞƌĂŶĚǁĂƐ͕ƵŶƟů:ƵŶĞϮϬϭϳ͕ƚŚĞ KŽĨƚŚĞĚǀĂŶƐ 'ƌŽƵƉ͘ƵƌƌĞŶƚůLJŚĞŝƐĂDĞŵďĞƌŽĨƚŚĞŽĂƌĚŽĨĚǀĂŶƐ^^/ZĂŶĚĐŚĂŝƌƐ ƐĞǀĞƌĂůĂĸůŝĂƚĞƐŽĨƚŚĞĚǀĂŶƐ'ƌŽƵƉ͘,ĞŚĂƐƐĞƌǀĞĚĂƐĐŚĂŝƌŵĂŶŽĨƚŚĞŽĂƌĚŽĨ ŝƌĞĐƚŽƌƐƐŝŶĐĞ&ĞďƌƵĂƌLJϮϬϬϱĂŶĚĂƐĂĚŝƌĞĐƚŽƌƐŝŶĐĞƵŐƵƐƚϮϬϬϭ͕ĂŶĚŝƐĂŵĞŵďĞƌ ŽĨƚŚĞƵĚŝƚŽŵŵŝƩĞĞĂŶĚƚŚĞEŽŵŝŶĂƟŽŶĂŶĚZĞŵƵŶĞƌĂƟŽŶŽŵŵŝƩĞĞ͘,Ğ ŚŽůĚƐĂWŚ͘͘ŝŶŐƌŝĐƵůƚƵƌĂů ĐŽŶŽŵŝĐƐĨƌŽŵDŝĐŚŝŐĂŶ^ƚĂƚĞhŶŝǀĞƌƐŝƚLJ͕h^͕Ă ƉŽƐƚͲĚŽĐƚŽƌĂƚĞŝŶŵĂŶĂŐĞŵĞŶƚƐĐŝĞŶĐĞĨƌŽŵ/'WĂƌŝƐ͕&ƌĂŶĐĞ͕ĂŶĚĂŵĂƐƚĞƌ͛Ɛ ĚĞŐƌĞĞŝŶĂŐƌŝĐƵůƚƵƌĂůĞĐŽŶŽŵŝĐƐĨƌŽŵ/EWĂƌŝƐ͕&ƌĂŶĐĞ͘ (VWHOOH'$5,(52866($8; ƐƚĞůůĞǁĂƐĂƉƉŽŝŶƚĞĚƚŽƚŚĞďŽĂƌĚŝŶƵŐƵƐƚϮϬϭϳĂŶĚũŽŝŶĞĚŵƌĞƚĂƐĞdžĞĐƵƟǀĞ ĚŝƌĞĐƚŽƌŝŶ:ĂŶƵĂƌLJϮϬϭϴ͕ǁŚĞƌĞƐŚĞŝƐĐƵƌƌĞŶƚůLJůĞĂĚŝŶŐƚŚĞŝŵƉůĞŵĞŶƚĂƟŽŶŽĨ ƚŚĞ ƐƚƌĂƚĞŐŝĐ ƉůĂŶ͘ ^ŚĞ ǁĂƐ ƉƌĞǀŝŽƵƐůLJ ƚŚĞ ĚĞƉƵƚLJ ĐŚŝĞĨ ŽƉĞƌĂƟŽŶƐ ŽĸĐĞƌ ĨŽƌ ƚŚĞĚǀĂŶƐ'ƌŽƵƉǁŚĞƌĞƐŚĞǁĂƐĚƌŝǀŝŶŐŬĞLJĚŝŐŝƚĂůĂŶĚƌƵƌĂůĮŶĂŶĐĞĂĐƟǀŝƟĞƐ ŝŶ ƚŚĞ ŐƌŽƵƉ͕ ĂƐ ŚĞĂĚ ŽĨ ĮŶĂŶĐŝĂů ƐĞƌǀŝĐĞƐ͘ ƐƚĞůůĞ ƐƚĂƌƚĞĚ ŚĞƌ ĐĂƌĞĞƌ ŝŶ ƌƵƌĂů ĚĞǀĞůŽƉŵĞŶƚĂŶĚĞĐŽŶŽŵŝĐƐŝŶϮϬϬϬ͕ďĞĨŽƌĞũƵŵƉŝŶŐŝŶŵŝĐƌŽĮŶĂŶĐĞŝŶϮϬϬϯĂƐ ĂĮĞůĚŽĸĐĞƌĨŽƌĂ^D ĮŶĂŶĐĞĚŽǁŶƐĐĂůŝŶŐƉƌŽŐƌĂŵŝŶZŽŵĂŶŝĂ͕ďĞĨŽƌĞũŽŝŶŝŶŐ ĚǀĂŶƐ/ŶƚĞƌŶĂƟŽŶĂů͕ĨŽƌŵĞƌůLJ,ŽƌƵƐĞǀĞůŽƉŵĞŶƚ&ŝŶĂŶĐĞ͕ĂƐĂƐĞŶŝŽƌĐŽŶƐƵůƚĂŶƚ ŝŶ ϮϬϬϰ͘ ĞƚǁĞĞŶ ǀĂƌŝŽƵƐ ĂƐƐŝŐŶŵĞŶƚƐ ĨŽƌ ƚŚĞ ĚǀĂŶƐ ŐƌŽƵƉ ŚĞĂĚƋƵĂƌƚĞƌƐ ƐƵƉƉŽƌƟŶŐ ƚŚĞ ĚĞǀĞůŽƉŵĞŶƚ ŽĨ ŐƌĞĞŶĮĞůĚ ŵŝĐƌŽĮŶĂŶĐĞ ŝŶƐƟƚƵƟŽŶƐ͕ ƐŚĞ ǁĂƐ ĐŚŝĞĨŽƉĞƌĂƟŽŶƐŽĸĐĞƌĨŽƌĚǀĂŶƐ'ŚĂŶĂ^ĂǀŝŶŐƐĂŶĚ>ŽĂŶƐ͕ĂŶĚƚŚĞŶŝŶϮϬϭϯ ƚŽŽŬƵƉƚŚĞƌŽůĞŽĨĚĞƉƵƚLJĐŚŝĞĨĞdžĞĐƵƟǀĞŽĸĐĞƌĨŽƌĚǀĂŶƐĂŶŬdĂŶnjĂŶŝĂ;ŶŽǁ >ĞƚƐŚĞŐŽĂŶŬdͿ͘ ƐƚĞůůĞŚŽůĚƐĂŵĂƐƚĞƌ͛ƐĚĞŐƌĞĞŝŶĂŐƌŝĐƵůƚƵƌĂůĞŶŐŝŶĞĞƌŝŶŐ͕ ƐƉĞĐŝĂůŝnjŝŶŐ ŝŶĂŐƌŝĐƵůƚƵƌĂůĞĐŽŶŽŵŝĐƐ͕ĨƌŽŵƚŚĞ/ŶƐƟƚƵƚEĂƟŽŶĂůŐƌŽŶŽŵŝƋƵĞ WĂƌŝƐͲ'ƌŝŐŶŽŶ͕&ƌĂŶĐĞ͘ 2XU3URƬOH Annual Report 2019 09 6WHYHQ'8&+$7(//( ^ƚĞǀĞŶ ǁĂƐ ĂƉƉŽŝŶƚĞĚ ƚŽ ƚŚĞ ŽĂƌĚ ŽĨ ŝƌĞĐƚŽƌƐ ŝŶ ƵŐƵƐƚ ϮϬϭϳ ĂŶĚ ŝƐ ƚŚĞ ĐŚĂŝƌŵĂŶŽĨƚŚĞZŝƐŬKǀĞƌƐŝŐŚƚŽŵŵŝƩĞĞ͘,ĞŝƐĂŶĞdžƉĞƌŝĞŶĐĞĚŝŶƚĞƌŶĂƟŽŶĂů ƐĞŶŝŽƌĮŶĂŶĐĞĞdžĞĐƵƟǀĞ͕ĂŶĚĐƵƌƌĞŶƚůLJŚŽůĚƐƚŚĞƉŽƐŝƟŽŶŽĨ KŽĨƚŚĞĚǀĂŶƐ 'ƌŽƵƉ͘ ,ŝƐ ĐĂƌĞĞƌ ŝŶ ĮŶĂŶĐŝĂů ƐĞƌǀŝĐĞƐ ƐƉĂŶƐ ϮϬ LJĞĂƌƐ͕ ŝŶĐůƵĚŝŶŐ ϭϲ LJĞĂƌƐ ŝŶ ŵŝĐƌŽĮŶĂŶĐĞ͘ dŚƌŽƵŐŚ ǀĂƌŝŽƵƐ ƉŽƐŝƟŽŶƐ ŝŶ ŐůŽďĂů ĮŶĂŶĐŝĂů ŝŶƐƟƚƵƟŽŶƐ ĂŶĚ ĐŽŶƐƵůƟŶŐ ĮƌŵƐ͕ ^ƚĞǀĞŶ ŚĂƐ ŐĂŝŶĞĚ ƐŽůŝĚ ƉƌĂĐƟĐĂů ŬŶŽǁůĞĚŐĞ ŽĨ ďŽƚŚ ƌĞƚĂŝů ďĂŶŬŝŶŐ ĂŶĚ ŵŝĐƌŽĮŶĂŶĐĞ ŽƉĞƌĂƟŽŶƐ ĨƌŽŵ ĚŝīĞƌĞŶƚ ƉĞƌƐƉĞĐƟǀĞƐ͗ ƐƚƌĂƚĞŐLJ͕ ŐŽǀĞƌŶĂŶĐĞ͕ ŽƉĞƌĂƟŽŶƐ͕ ďƵƐŝŶĞƐƐ ĚĞǀĞůŽƉŵĞŶƚ͕ ŽƌŐĂŶŝnjĂƟŽŶ͕ ŝŶƚĞƌŶĂů ĐŽŶƚƌŽů͕ ĂŶĚƌŝƐŬŵĂŶĂŐĞŵĞŶƚ͘,ĞŝƐĐŚĂŝƌŵĂŶŽĨƚŚĞďŽĂƌĚŽĨƐĞǀĞƌĂůĚǀĂŶƐĂĸůŝĂƚĞƐ͘,Ğ ŚŽůĚƐĂŵĂƐƚĞƌ͛ƐĚĞŐƌĞĞŝŶŐĞŶĞƌĂůŵĂŶĂŐĞŵĞŶƚ͕ŵĂũŽƌŝŶŐŝŶĮŶĂŶĐĞ͕ĨƌŽŵ, ^ĐŚŽŽůŽĨDĂŶĂŐĞŵĞŶƚ͕ƚŚĞůĞĂĚŝŶŐŐƌĂĚƵĂƚĞƐĐŚŽŽůŽĨŵĂŶĂŐĞŵĞŶƚŝŶ&ƌĂŶĐĞ͘ 3DSKRQ0$1*.+$/$7+$1$.81 WĂƉŚŽŶǁĂƐĂƉƉŽŝŶƚĞĚƚŽƚŚĞďŽĂƌĚŝŶ^ĞƉƚĞŵďĞƌϮϬϭϱĂŶĚŝƐĂŵĞŵďĞƌŽĨƚŚĞ ZŝƐŬKǀĞƌƐŝŐŚƚŽŵŵŝƩĞĞ͘,ŝƐŵŽƌĞƚŚĂŶϭϴLJĞĂƌƐ͛ĞdžƉĞƌŝĞŶĐĞŝŶƚŚĞďĂŶŬŝŶŐĂŶĚ ĮŶĂŶĐĞŝŶĚƵƐƚƌLJƐƉĂŶƐĂďƌŽĂĚƌĂŶŐĞŽĨĚŝƐĐŝƉůŝŶĞƐ͗ĐŽƌƉŽƌĂƚĞĮŶĂŶĐĞ͕ŝŶǀĞƐƚŵĞŶƚ ďĂŶŬŝŶŐ͕ŵĞƌŐĞƌƐĂŶĚĂĐƋƵŝƐŝƟŽŶƐ͕ĚĞďƚƌĞƐƚƌƵĐƚƵƌŝŶŐ͕^D ďĂŶŬŝŶŐĂŶĚĮŶĂŶĐĞ ŵĂƌŬĞƟŶŐ͘EŽƚĂďůLJ͕ŚĞŚĂƐϭϯLJĞĂƌƐ͛ĞdžƉĞƌŝĞŶĐĞŝŶ^D ďĂŶŬŝŶŐ͕ƐƉĞĐŝĂůŝnjŝŶŐŝŶ ďƵƐŝŶĞƐƐƐƚƌĂƚĞŐLJĂŶĚƉƌŽĚƵĐƚĚĞƐŝŐŶĂŶĚĚĞǀĞůŽƉŵĞŶƚ͘WĂƉŚŽŶŚĂĚŚĞůĚƐĞŶŝŽƌ ƉŽƐŝƟŽŶƐŝŶǀĂƌŝŽƵƐďĂŶŬƐŝŶdŚĂŝůĂŶĚŝŶĐůƵĚŝŶŐĂƐĮƌƐƚǀŝĐĞƉƌĞƐŝĚĞŶƚĂƚ<ĂƐŝŬŽƌŶ ĂŶŬWůĐĂŶĚĂƐĐŚŝĞĨŽĨ^D ĂŶĚƐƵƉƉůLJĐŚĂŝŶĂƚdDĂŶŬWůĐ͘ƚ<ĂƐŝŬŽƌŶĂŶŬ ŚĞůĞĚƚŚĞƚĞĂŵƚŽĂĐŚŝĞǀĞƚŚĞƉƌĞƐƟŐŝŽƵƐďĞƐƚ^D ďĂŶŬŝŶƐŝĂĂǁĂƌĚĨƌŽŵ ƐŝĂŶĂŶŬĞƌŵĂŐĂnjŝŶĞĨŽƌƚǁŽĐŽŶƐĞĐƵƟǀĞLJĞĂƌƐ͘,ĞŚĂƐĂŵĂƐƚĞƌ͛ƐĚĞŐƌĞĞŝŶ ďƵƐŝŶĞƐƐĂĚŵŝŶŝƐƚƌĂƟŽŶ;ĮŶĂŶĐĞͿĨƌŽŵKƌĞŐŽŶ^ƚĂƚĞhŶŝǀĞƌƐŝƚLJŝŶƚŚĞh^͕ĂŶĚ Ă ďĂĐŚĞůŽƌ ŽĨ ƐĐŝĞŶĐĞ ĚĞŐƌĞĞ ŝŶ ŝŶĚƵƐƚƌŝĂů ĞŶŐŝŶĞĞƌŝŶŐ ĨƌŽŵ ŚƵůĂůŽŶŐŬŽƌŶ hŶŝǀĞƌƐŝƚLJ͕ĂŶŐŬŽŬ͘ &+($3KDODULQ WŚĂůĂƌŝŶǁĂƐĂƉƉŽŝŶƚĞĚƚŽƚŚĞďŽĂƌĚŝŶ:ĂŶƵĂƌLJϮϬϭϵ͘WŚĂůĂƌŝŶŚĂƐƐĞƌǀĞĚĂƐ K ŽĨŵƌĞƚĨŽƌŵŽƌĞƚŚĂŶϮϬLJĞĂƌƐ͘,ĞũŽŝŶĞĚŵƌĞƚŝŶϭϵϵϱĂƐĂĐƌĞĚŝƚŽĸĐĞƌĂŶĚ ǁĂƐƚŚĞĮƌƐƚŽĸĐĞƌƚŽƚĞƐƚŝŶĚŝǀŝĚƵĂůĐƌĞĚŝƚ͕ĂŶĚ'ĞŶĞƌĂůƚƌĂŝŶĞƌ͘,ŝƐůĞĂĚĞƌƐŚŝƉ ĞdžƚĞŶĚƐƚŽďŽĂƌĚƌŽůĞƐŝŶĐůƵĚŝŶŐƚŚĞďŽĂƌĚĚŝƌĞĐƚŽƌŽĨŵƌĞƚD&/ĨŽƌŵŽƌĞƚŚĂŶ ϭϱLJĞĂƌƐĂŶĚŽĨƚŚĞĂŵďŽĚŝĂDŝĐƌŽĮŶĂŶĐĞƐƐŽĐŝĂƟŽŶ;DͿ͘,ĞǁĂƐĂůƐŽĂ ŽĂƌĚ ŵĞŵďĞƌ ŽĨ ǀĂƌŝŽƵƐ ŝŶƐƟƚƵƟŽŶƐ ŝŶĐůƵĚŝŶŐ ƚŚĞ ZƵƌĂů ĞǀĞůŽƉŵĞŶƚ ĂŶŬ ĂŶĚƌĞĚŝƚƵƌĞĂƵĂŵďŽĚŝĂ͘WƌŝŽƌƚŽŵŽǀŝŶŐƚŽƚŚĞĮŶĂŶĐĞƐĞĐƚŽƌ͕ŚĞǁŽƌŬĞĚ ĂƚƚŚĞDŝŶŝƐƚƌLJŽĨŐƌŝĐƵůƚƵƌĞ͕&ŽƌĞƐƚƌLJĂŶĚ&ŝƐŚĞƌŝĞƐ͘,ĞŚŽůĚƐĂŶDĨƌŽŵƚŚĞ EĂƟŽŶĂůhŶŝǀĞƌƐŝƚLJŽĨDĂŶĂŐĞŵĞŶƚĂŶĚhƚĂƌĂhŶŝǀĞƌƐŝƚLJŽĨDĂůĂLJƐŝĂĂŶĚĂ ŝŶĂŐƌŝĐƵůƚƵƌĂůĞĐŽŶŽŵŝĐƐĨƌŽŵƚŚĞ ĐŽŶŽŵŝĐ^ĐŝĞŶĐĞ/ŶƐƟƚƵƚĞ͕ĂŵďŽĚŝĂ͘ 10 2XU3URƬOH Annual Report 2019 Independent %RDUG0HPEHUV -RKQ0F*,1/(< :ŽŚŶǁĂƐĂƉƉŽŝŶƚĞĚƚŽƚŚĞďŽĂƌĚĂƐĂŶŝŶĚĞƉĞŶĚĞŶƚŵĞŵďĞƌŝŶ^ĞƉƚĞŵďĞƌϮϬϭϱ͘ :ŽŚŶŝƐĂĨŽƵŶĚĞƌĂŶĚĂŵĂŶĂŐŝŶŐƉĂƌƚŶĞƌĂƚDĞŬŽŶŐ^ƚƌĂƚĞŐŝĐWĂƌƚŶĞƌƐ;D^WͿ͕ ĂůŽĐĂůůLJďĂƐĞĚŝŶǀĞƐƚŵĞŶƚĂŶĚĂĚǀŝƐŽƌLJĮƌŵ͘^ƉĞĐŝĂůŝnjŝŶŐŝŶƚŚĞĮŶĂŶĐĞƐĞĐƚŽƌ͕ :ŽŚŶŚĂƐǁŽƌŬĞĚŝŶĂŵďŽĚŝĂĨŽƌŵŽƌĞƚŚĂŶϭϱLJĞĂƌƐ͕ŝŶĐůƵĚŝŶŐƐĞǀĞŶLJĞĂƌƐĂƚ EĂŶŬĂƐƚŚĞŚĞĂĚŽĨƐƚƌĂƚĞŐLJĨŽƌƚŚĞ'ƌĞĂƚĞƌDĞŬŽŶŐZĞŐŝŽŶ͘/ŶĂĚĚŝƟŽŶ ƚŽŚŝƐďŽĂƌĚŵĞŵďĞƌƐŚŝƉ͕:ŽŚŶŝƐĂŵĞŵďĞƌŽĨƚŚĞZŝƐŬKǀĞƌƐŝŐŚƚŽŵŵŝƩĞĞ ĂŶĚƚŚĞEŽŵŝŶĂƟŽŶĂŶĚZĞŵƵŶĞƌĂƟŽŶŽŵŵŝƩĞĞ͘,ĞŚĂƐĂŵĂƐƚĞƌ͛ƐĚĞŐƌĞĞŝŶ ŝŶƚĞƌŶĂƟŽŶĂůĚĞǀĞůŽƉŵĞŶƚĨƌŽŵZD/dhŶŝǀĞƌƐŝƚLJ͕DĞůďŽƵƌŶĞ͕ƵƐƚƌĂůŝĂ͘ .$</RW >ŽƚŚĂƐƐĞƌǀĞĚĂƐĂŶŝŶĚĞƉĞŶĚĞŶƚďŽĂƌĚŵĞŵďĞƌƐŝŶĐĞĞĐĞŵďĞƌϮϬϭϮ͘,ĞŝƐ Ă ƉĂƐƐŝŽŶĂƚĞ ĞŶƚƌĞƉƌĞŶĞƵƌ͕ ǁŝƚŚ ƐĞŶŝŽƌ ŵĂŶĂŐĞŵĞŶƚ ĞdžƉĞƌŝĞŶĐĞ ŝŶ ĮŶĂŶĐĞ ĂŶĚ ďĂŶŬŝŶŐ͕ ŽƉĞƌĂƟŽŶĂů ƐƚƌĂƚĞŐLJ ĂŶĚ ƌŝƐŬ ŵĂŶĂŐĞŵĞŶƚ͕ ƚĞůĞĐŽŵŵƵŶŝĐĂƟŽŶƐ ĂŶĚ ďƵƐŝŶĞƐƐ ƐƚĂƌƚƵƉƐ͘ /Ŷ ŚŝƐ ƉƌŽĨĞƐƐŝŽŶĂů ĐĂƌĞĞƌ͕ >Žƚ ƌĞĐĞŝǀĞĚ ƐŝŐŶŝĮĐĂŶƚ ĂǁĂƌĚƐ ĨŽƌ ĞdžĐĞƉƟŽŶĂů ůĞĂĚĞƌƐŚŝƉ ĂŶĚ ƉĞƌĨŽƌŵĂŶĐĞ ĨƌŽŵ ďŽƚŚ ŽĨ ƚŚĞ ŵƵůƟŶĂƟŽŶĂůĐŽŵƉĂŶŝĞƐĨŽƌǁŚŝĐŚŚĞǁŽƌŬĞĚ͘ƐƚŚĞĐŚŝĞĨĮŶĂŶĐŝĂůŽĸĐĞƌŽĨ ƚĞůĞĐŽŵŵƵŶŝĐĂƟŽŶƐ ĂŶĚ ƚĞůĞǀŝƐŝŽŶ ďƵƐŝŶĞƐƐ Ăƚ Ăŵ'^D Ž >ƚĚ ;DŽďŝƚĞůͿ͕ ŚĞ ďƌŽƵŐŚƚƚŚĞĐŽŵƉĂŶLJŝŶƚŽĐŽŵƉůŝĂŶĐĞǁŝƚŚƚŚĞ^ĂƌďĂŶĞƐͲKdžůĞLJĐƚĂŶĚƌĂŝƐĞĚ ƐŝŐŶŝĮĐĂŶƚĨƵŶĚŝŶŐĨŽƌĞdžƉĂŶƐŝŽŶ͕ďĞĨŽƌĞďĞŝŶŐƉƌŽŵŽƚĞĚŝŶϮϬϬϵƚŽďĞĐŽŵĞƚŚĞ ĐŚŝĞĨŽƉĞƌĂƟŶŐŽĸĐĞƌ͘WƌŝŽƌƚŽƚŚĂƚ͕ŚĞǁĂƐŚĞĂĚŽĨƐĞƌǀŝĐĞĚĞůŝǀĞƌLJĂƚ^ƚĂŶĚĂƌĚ ŚĂƌƚĞƌĞĚĂŶŬŝŶWŚŶŽŵWĞŶŚ͘KŶƚŽƉŽĨŚŝƐďŽĂƌĚŵĞŵďĞƌƐŚŝƉ͕>ŽƚŝƐĂůƐŽƚŚĞ ĐŚĂŝƌŵĂŶŽĨƚŚĞEŽŵŝŶĂƟŽŶĂŶĚZĞŵƵŶĞƌĂƟŽŶŽŵŵŝƩĞĞĂŶĚĂŵĞŵďĞƌŽĨƚŚĞ ƵĚŝƚŽŵŵŝƩĞĞ͘,ĞŚŽůĚƐĂďĂĐŚĞůŽƌ͛ƐĚĞŐƌĞĞŝŶďƵƐŝŶĞƐƐĂĚŵŝŶŝƐƚƌĂƟŽŶĨƌŽŵ <ĞŶŶĞĚLJtĞƐƚĞƌŶhŶŝǀĞƌƐŝƚLJ͕/ŶĚŽŶĞƐŝĂ͘ 65(1*6DPRUN ^ĂŵŽƌŬǁĂƐĂƉƉŽŝŶƚĞĚƚŽƚŚĞďŽĂƌĚĂƐĂŶŝŶĚĞƉĞŶĚĞŶƚŵĞŵďĞƌŝŶ^ĞƉƚĞŵďĞƌ ϮϬϭϱ͘ƵƌƌĞŶƚůLJ͕ŚĞŝƐĂďƵƐŝŶĞƐƐĂĚǀŝƐŽƌƚŽdžŝƐ/ŶǀĞƐƚŵĞŶƚŽŶƐƵůƟŶŐ͕ĂŶĚŝŶƚŚĞ ůĂƐƚϭϬLJĞĂƌƐŚĞůĚƐĞŶŝŽƌƉŽƐŝƟŽŶƐĂƚ&ŽƌĞŝŐŶdƌĂĚĞĂŶŬŽĨĂŵďŽĚŝĂĂŶĚE ZŽLJĂů͘,ĞŚĂƐŚĞůĚƐĞŶŝŽƌŵĂŶĂŐĞŵĞŶƚƉŽƐŝƟŽŶƐŝŶŶƵŵĞƌŽƵƐĐŽŵƉĂŶŝĞƐĂŶĚ ĂĐĐƌƵĞĚŵŽƌĞƚŚĂŶϮϬLJĞĂƌƐŽĨĞdžƉĞƌŝĞŶĐĞŝŶĂďƌŽĂĚƌĂŶŐĞŽĨƐĞĐƚŽƌƐ͕ĨƌŽŵĨĂƐƚͲ ŵŽǀŝŶŐĐŽŶƐƵŵĞƌŐŽŽĚƐ͕ĚĞǀĞůŽƉŵĞŶƚĂŶĚƌĞƚĂŝůďĂŶŬŝŶŐƚŽĂŝƌƉŽƌƚŵĂŶĂŐĞŵĞŶƚ͘ ,ŝƐƐƚƌŽŶŐďĂĐŬŐƌŽƵŶĚĂŶĚĚŝǀĞƌƐĞĞdžƉĞƌŝĞŶĐĞŚĂǀĞďĞĞŶǀĂůƵĞĚĂƐƐĞƚƐĨŽƌƚŚĞ ĐŽŵƉĂŶŝĞƐŚĞǁŽƌŬĞĚĨŽƌ͘KŶƚŽƉŽĨŚŝƐďŽĂƌĚŵĞŵďĞƌƐŚŝƉ͕ŚĞŝƐƚŚĞĐŚĂŝƌŵĂŶ ŽĨ ƚŚĞ ƵĚŝƚ ŽŵŵŝƩĞĞ ĂŶĚ Ă ŵĞŵďĞƌ ŽĨ ƚŚĞ ZŝƐŬ KǀĞƌƐŝŐŚƚ ŽŵŵŝƩĞĞ͘ ,Ğ ŚĂƐĂŵĂƐƚĞƌ͛ƐĚĞŐƌĞĞŝŶŝŶƚĞƌŶĂƟŽŶĂůďƵƐŝŶĞƐƐĂĚŵŝŶŝƐƚƌĂƟŽŶĨƌŽŵtĞƐƚŽĂƐƚ hŶŝǀĞƌƐŝƚLJ ŝŶ ƚŚĞ h^͕ ĂŶĚ Ă ďĂĐŚĞůŽƌ͛Ɛ ĚĞŐƌĞĞ ŝŶ ĞůĞĐƚƌŝĐĂů ĞŶŐŝŶĞĞƌŝŶŐ ĨƌŽŵ ĂůŝĨŽƌŶŝĂ^ƚĂƚĞhŶŝǀĞƌƐŝƚLJ͘ 2XU3URƬOH Annual Report 2019 11 6KDUHKROGHUV 7RWDO $GYDQV6$ ĚǀĂŶƐ ^ ^/Z ;ĚǀĂŶƐ ^Ϳ ŝƐ Ă ǀĞŶƚƵƌĞ ĐĂƉŝƚĂů ŝŶǀĞƐƚŵĞŶƚ ĐŽŵƉĂŶLJ͕ ĐƌĞĂƚĞĚ ŝŶ ƵŐƵƐƚ ϮϬϬϱ ďLJ ĚǀĂŶƐ /ŶƚĞƌŶĂƟŽŶĂů ĂŶĚ Ɛŝdž ĚĞǀĞůŽƉŵĞŶƚ 120,002,320 ĮŶĂŶĐĞ ŝŶƐƟƚƵƟŽŶƐ ;͕ /͕ &DK͕ /&͕ <Ĩt ĂŶĚ WƌŽƉĂƌĐŽ & ŐƌŽƵƉͿ ǁŝƚŚ ŝƚƐ ƌĞŐŝƐƚĞƌĞĚ ŽĸĐĞ Registered Capital (KHR’000) ŝŶ >ƵdžĞŵďŽƵƌŐ͘ ĚǀĂŶƐ ^͛Ɛ ŵŝƐƐŝŽŶ ŝƐ ƚŽ ďƵŝůĚ Ă Par Value at KHR1,360,00/share ŶĞƚǁŽƌŬ ŽĨ ŵŝĐƌŽĮŶĂŶĐĞ ŝŶƐƟƚƵƟŽŶƐ ŝŶ ĚĞǀĞůŽƉŝŶŐ ĂŶĚ ĞŵĞƌŐŝŶŐ ĐŽƵŶƚƌŝĞƐ͘ /ƚƐ ŝŶǀĞƐƚŵĞŶƚ ƐƚƌĂƚĞŐLJ ĐŽŶƐŝƐƚƐŽĨƐĞƫŶŐƵƉŐƌĞĞŶĮĞůĚD&/ƐĂŶĚ͕ĂƐŝŶƚŚĞ 88,237 ĐĂƐĞ ŽĨ ŵƌĞƚ͕ ŝŶǀĞƐƟŶŐ ĞƋƵŝƚLJ ŝŶ ĞdžŝƐƟŶŐ D&/Ɛ͕ ƉƌŽǀŝĚĞĚ ƐƵĐŚ D&/Ɛ ƐŚĂƌĞ ĚǀĂŶƐ ^͛Ɛ ǀŝƐŝŽŶ ĂŶĚ Number of Shares ƵŶĚĞƌƐƚĂŶĚƚŚĞƐƚƌĂƚĞŐŝĐĂŶĚŽƉĞƌĂƟŽŶĂůďĞŶĞĮƚƐŽĨ ũŽŝŶŝŶŐĂŶŝŶƚĞƌŶĂƟŽŶĂůŶĞƚǁŽƌŬ͘ 100 % ZĞŐŝƐƚĞƌĞĚĂƉŝƚĂů Share Percentage 63,335,200 46,570 ^ŚĂƌĞƐ 52.778 % ^ŚĂƌĞWĞƌĐĞŶƚĂŐĞ 12 2XU3URƬOH Annual Report 2019 Botta FMO ŽƩĂŝƐĂŶĞŵƉůŽLJĞĞͲŽǁŶĞĚĐŽŵƉĂŶLJŝŶĐŽƌƉŽƌĂƚĞĚ EĞĚĞƌůĂŶĚƐĞ &ŝŶĂŶĐŝĞƌŝŶŐƐͲDĂĂƚƐĐŚĂƉƉŝũ ĂƐĂƉƌŝǀĂƚĞůŝŵŝƚĞĚĐŽŵƉĂŶLJŽŶĞĐĞŵďĞƌϮϬ͕ϮϬϬϲ͕ ǀŽŽƌ KŶƚǁŝŬŬĞůŝŶŐƐůĂŶĚĞŶ E͘s͘ ;&DKͿ ŝƐ ƚŚĞ ĂŶĚ ƚƌĂŶƐĨŽƌŵĞĚŝŶƚŽĂƉƵďůŝĐ ůŝŵŝƚĞĚĐŽŵƉĂŶLJŽŶ ĞŶƚƌĞƉƌĞŶĞƵƌŝĂů ĚĞǀĞůŽƉŵĞŶƚ ďĂŶŬ ŽĨ dŚĞ KĐƚŽďĞƌϮϭ͕ϮϬϭϰ͕ƵŶĚĞƌĂŵďŽĚŝĂŶůĂǁ͕ĂŶĚǁŝƚŚ EĞƚŚĞƌůĂŶĚƐ͕ ĐƌĞĂƚĞĚ ďLJ Ă ĚĞĞĚ ŽĨ ŝŶĐŽƌƉŽƌĂƟŽŶ Ă ƌĞŐŝƐƚĞƌĞĚ ŽĸĐĞ ŝŶ WŚŶŽŵ WĞŶŚ͕ ĂŵďŽĚŝĂ͘ dŚĞ ŝŶ ϭϵϳϬ͘ /ƚƐ ƌĞŐŝƐƚĞƌĞĚ ŽĸĐĞ ŝƐ ŝŶ dŚĞ ,ĂŐƵĞ͕ ĐŽŵƉĂŶLJǁĂƐĐƌĞĂƚĞĚƚŽŝŶǀĞƐƚŝŶŵƌĞƚŽŶůLJ͕ĂƐŝƚŝƐ EĞƚŚĞƌůĂŶĚƐ͘ /ƚƐ ŽďũĞĐƟǀĞ ŝƐ ƚŽ ĐŽŶƚƌŝďƵƚĞ ƚŽ ƚŚĞ ĂďůĞƚŽĂƩƌĂĐƚĂůŽŶŐͲƚĞƌŵĐŽŵŵŝƚŵĞŶƚĨƌŽŵƐƚĂī͘ ĚĞǀĞůŽƉŵĞŶƚŽĨďƵƐŝŶĞƐƐŝŶĚĞǀĞůŽƉŝŶŐĐŽƵŶƚƌŝĞƐŝŶ ǀĞŶŝĨŝƚŽǁŶƐĂƐŵĂůůƉĞƌĐĞŶƚĂŐĞŽĨƚŚĞĐĂƉŝƚĂů͕ƚŚŝƐ ƚŚĞŝŶƚĞƌĞƐƚŽĨůŽŶŐͲƚĞƌŵĂŶĚƐƵƐƚĂŝŶĂďůĞĞĐŽŶŽŵŝĐ ƌĞƉƌĞƐĞŶƚƐĂůŽŶŐͲƚĞƌŵŝŶǀĞƐƚŵĞŶƚ͘ ĂŶĚƐŽĐŝĂůƉƌŽŐƌĞƐƐŝŶĂĐĐŽƌĚĂŶĐĞǁŝƚŚƚŚĞŝŶƚĞŶƟŽŶƐ ŽĨƚŚĞŐŽǀĞƌŶŵĞŶƚƐŽĨƐƵĐŚĐŽƵŶƚƌŝĞƐ͘ 3,801,200 ZĞŐŝƐƚĞƌĞĚĂƉŝƚĂů 23,994,480 ZĞŐŝƐƚĞƌĞĚĂƉŝƚĂů 2,795 ^ŚĂƌĞƐ 17,643 ^ŚĂƌĞƐ 3.168 % ^ŚĂƌĞWĞƌĐĞŶƚĂŐĞ 19.995% ^ŚĂƌĞWĞƌĐĞŶƚĂŐĞ ,)& LFP /ŶƚĞƌŶĂƟŽŶĂů &ŝŶĂŶĐĞ ŽƌƉŽƌĂƟŽŶ ;/&Ϳ͕ Ă ŵĞŵďĞƌ >Ă &ĂLJĞƩĞ WĂƌƟĐŝƉĂƟŽŶƐ ;>&WͿ ŝƐ ĂŶ ŝŶǀĞƐƚŵĞŶƚ ŽĨ ƚŚĞ tŽƌůĚ ĂŶŬ 'ƌŽƵƉ͕ ŝƐ ƚŚĞ ůĂƌŐĞƐƚ ŐůŽďĂů ĐŽŵƉĂŶLJĐƌĞĂƚĞĚŝŶϮϬϬϬďLJ,ŽƌƵƐĨŽƌƚŚĞƉƵƌƉŽƐĞ ĚĞǀĞůŽƉŵĞŶƚŝŶƐƟƚƵƟŽŶĨŽĐƵƐĞĚĞdžĐůƵƐŝǀĞůLJŽŶƚŚĞ ŽĨŝŶǀĞƐƟŶŐĞƋƵŝƚLJŝŶŵŝĐƌŽĮŶĂŶĐĞŝŶƐƟƚƵƟŽŶƐĂŶĚ ƉƌŝǀĂƚĞ ƐĞĐƚŽƌ ŝŶ ĚĞǀĞůŽƉŝŶŐ ĐŽƵŶƚƌŝĞƐ͘ ƐƚĂďůŝƐŚĞĚ ƌĞŐŝƐƚĞƌĞĚŝŶ&ƌĂŶĐĞĂƐĂůŝŵŝƚĞĚůŝĂďŝůŝƚLJĐŽŵƉĂŶLJ͘ ŝŶ ϭϵϱϲ͕ /& ŝƐ ŽǁŶĞĚ ďLJ ϭϴϰ ŵĞŵďĞƌ ĐŽƵŶƚƌŝĞƐ ŝŶĐůƵĚŝŶŐ ĂŵďŽĚŝĂ͕ Ă ŐƌŽƵƉ ƚŚĂƚ ĐŽůůĞĐƟǀĞůLJ ĚĞƚĞƌŵŝŶĞƐ ŝƚƐ ƉŽůŝĐŝĞƐ͘ /ƚƐ ǁŽƌŬ ŝŶ ŵŽƌĞ ƚŚĂŶ ϭϬϬ ĚĞǀĞůŽƉŝŶŐ ĐŽƵŶƚƌŝĞƐ ĂůůŽǁƐ ĐŽŵƉĂŶŝĞƐ ĂŶĚ ĮŶĂŶĐŝĂůŝŶƐƟƚƵƟŽŶƐŝŶĞŵĞƌŐŝŶŐŵĂƌŬĞƚƐƚŽĐƌĞĂƚĞ ũŽďƐ͕ ŐĞŶĞƌĂƚĞ ƚĂdž ƌĞǀĞŶƵĞƐ͕ ŝŵƉƌŽǀĞ ĐŽƌƉŽƌĂƚĞ ŐŽǀĞƌŶĂŶĐĞ ĂŶĚ ĞŶǀŝƌŽŶŵĞŶƚĂů ƉĞƌĨŽƌŵĂŶĐĞ͕ ĂŶĚ ĐŽŶƚƌŝďƵƚĞƚŽƚŚĞŝƌůŽĐĂůĐŽŵŵƵŶŝƟĞƐ͘ 23,994,480 ZĞŐŝƐƚĞƌĞĚĂƉŝƚĂů 4,876,960 ZĞŐŝƐƚĞƌĞĚĂƉŝƚĂů 17,643 ^ŚĂƌĞƐ 3,586 ^ŚĂƌĞƐ 19.995% ^ŚĂƌĞWĞƌĐĞŶƚĂŐĞ 4.064 % ^ŚĂƌĞWĞƌĐĞŶƚĂŐĞ La Fayette Entrepreneurial Development Participations Bank 2XU3URƬOH Annual Report 2019 13 Dos Dinn &KLHI([HFXWLYH2ƯFHU ŵƌĞƚĂƐĂůĞĂĚŝŶŐĮŶĂŶĐŝĂůŝŶƐƟƚƵƟŽŶŝŶĂŵďŽĚŝĂ͘KƵƌ ĨŽĐƵƐ ŽŶ ƐƚĂī ĐƌĞĂƟŶŐ ŵĞĂŶŝŶŐĨƵů ƌĞůĂƟŽŶƐŚŝƉƐ ǁŝƚŚ ŽƵƌĂůŵŽƐƚŚĂůĨĂŵŝůůŝŽŶĐƵƐƚŽŵĞƌƐŚĂƐŚĞůƉĞĚƚŚĞŵƚŽ ĐŽŶƟŶƵĞŽīĞƌŝŶŐƚŚĞďĞƐƚƉŽƐƐŝďůĞĐƵƐƚŽŵĞƌĞdžƉĞƌŝĞŶĐĞ͘ tĞĐŽŶƟŶƵĞĚƚŽƌĞĂĐŚŽƵƚƚŽŶĞǁĐƵƐƚŽŵĞƌƐ͕ƚŚĂŶŬƐƚŽ ŽƵƌ ƚƌƵƐƚĞĚ ĂŶĚ ĞƐƚĂďůŝƐŚĞĚ ďƌĂŶĚ͕ ĂƩƌĂĐƟǀĞ ƐĞƌǀŝĐĞƐ ĂŶĚ ĚŝŐŝƚĂů ĐŚĂŶŶĞůƐ͕ ĂƐ ǁĞůů ĂƐ ŚŝŐŚůLJ ƉƌŽĨĞƐƐŝŽŶĂů ĂŶĚ ƉĞƌƐŽŶĂůŝnjĞĚĐƵƐƚŽŵĞƌƐĞƌǀŝĐĞ͘ KƵƌ ƐƚƌĂƚĞŐLJ ĨŽƌ ŵƌĞƚн ƌĞŵĂŝŶƐ ŚŝŶŐĞĚ ŽŶ ƚŚĞ ĨŽƵƌ ƐƚƌĂƚĞŐŝĐƉƌŝŽƌŝƟĞƐŽĨŝͿĞdžƉĂŶĚŝŶŐŽƵƚƌĞĂĐŚĂŶĚŵĂƌŬĞƚ ƐŚĂƌĞ͖ ŝŝͿ ĚĞǀĞůŽƉŝŶŐ Ă ĐůŝĞŶƚͲĐĞŶƚƌŝĐ ĂƉƉƌŽĂĐŚ͖ ŝŝŝͿ ŝŵƉƌŽǀŝŶŐ ƉƌŽĐĞƐƐĞƐ ďLJ ůĞǀĞƌĂŐŝŶŐ ƚĞĐŚŶŽůŽŐLJ͕ ĂŶĚ ŝǀͿ ŝŶǀĞƐƟŶŐ ŝŶ ƚĂůĞŶƚ ĂŶĚ ƉĞŽƉůĞ͘ KǀĞƌ ƚŚĞ LJĞĂƌƐ͕ ƚŚĞ ƉƌŽŐƌĞƐƐŽĨƚŚĞŵƌĞƚнƐƚƌĂƚĞŐLJŚĂƐƐƵƉƉŽƌƚĞĚƵƐƚŽŐƌŽǁ ĂŶĚƚƌĂŶƐĨŽƌŵ͘ KǀĞƌ ƚŚĞ LJĞĂƌ͕ ǁĞ ŵĂĚĞ ƐƵďƐƚĂŶƟĂů ƉƌŽŐƌĞƐƐ ƚŽǁĂƌĚƐ ŽƵƌ ŵƌĞƚн ŽďũĞĐƟǀĞƐ ĞƐƉĞĐŝĂůůLJ ĐŽŶĐĞƌŶŝŶŐ ŽƵƌ ĚŝŐŝƚĂů ϮϬϭϵ ǁĂƐ ĂŶŽƚŚĞƌ ŐŽŽĚ LJĞĂƌ ĨŽƌ ŵƌĞƚ ĂƐ ǁĞ ƌŽĂĚŵĂƉ͘ tĞ ŽĸĐŝĂůůLJ ůĂƵŶĐŚĞĚ ŽƵƌ ŶĞǁ DŽďŝůĞ ŵĂŝŶƚĂŝŶĞĚ ŽƵƌ ƐƚƌŽŶŐ ƉĞƌĨŽƌŵĂŶĐĞ ĂŵŽŶŐƐƚ ůĞĂĚŝŶŐ ƉƉůŝĐĂƟŽŶ͕ŵƌĞƚDŽďŝůĞ͕ŽīĞƌŝŶŐĐůŝĞŶƚƐĞĂƐLJĂŶĚĨĂƐƚ D/Ɛ ĂŶĚ ďĂŶŬƐ ŝŶ ĂŵďŽĚŝĂ͘ tĞ ĐŽŶƟŶƵĞĚ ƚŽ ďƵŝůĚ ĂĐĐĞƐƐƚŽƚŚĞŝƌĂĐĐŽƵŶƚƐǁŚĞƌĞǀĞƌƚŚĞLJĂƌĞ͘ŵƌĞƚŵŽďŝůĞ ŽƵƌ ƐƵƐƚĂŝŶĂďŝůŝƚLJ͕ ǁŚŝůĞ ŐĞŶĞƌĂƟŶŐ ƉŽƐŝƟǀĞ ŝŵƉĂĐƚ ĨŽƌ ĂůƐŽĂůůŽǁƐĐĂƌĚĨƌĞĞdDǁŝƚŚĚƌĂǁĂůƐ͕ŝŶƚĞŐƌĂƚĞĚĐŽŶƚĂĐƚ ĐƵƐƚŽŵĞƌƐ ĂŶĚ ƚŚĞ ĐŽŵŵƵŶŝƟĞƐ ǁĞ ƐĞƌǀĞ͘ ŽŵďŝŶŝŶŐ ǀŝĂDĞƐƐĞŶŐĞƌ͕ůŽĂŶƌĞƋƵĞƐƚƐĨŽƌĐůŝĞŶƚƐĂŶĚƉƌŽƐƉĞĐƟǀĞ ƉƌŽĮƚĂďŝůŝƚLJǁŝƚŚŝŵƉĂĐƚŽďũĞĐƟǀĞƐ͕ǁĞĐŽŶƟŶƵĞĚŝŶŽƵƌ ĐůŝĞŶƚƐ ĂŶĚ ƚƌĂŶƐĨĞƌƐ ƚŽ ĂŶĚ ĨƌŽŵ ĞͲǁĂůůĞƚƐ ƐƵĐŚ ĂƐ ŵŝƐƐŝŽŶƚŽĚĞůŝǀĞƌƌĞƐƉŽŶƐŝďůĞĂŶĚƐƵƐƚĂŝŶĂďůĞŐƌŽǁƚŚ͘ tŝŶŐ ĂŶĚ Wŝ WĂLJ͘ KƵƌ ĐůŝĞŶƚƐ ĂƌĞ ďĞŶĞĮƫŶŐ ĨƌŽŵ ŽƵƌ ƉĂƌƚŶĞƌƐŚŝƉƐǁŝƚŚtŝŶŐĂŶĚdƌƵĞDŽŶĞLJĂŐĞŶƚƐ͕ĞŶĂďůŝŶŐ tĞ ƐƚĞĂĚŝůLJ ŐƌĞǁ ŽƵƌ ůŽĂŶ ƉŽƌƞŽůŝŽ ďLJ Ϯϲй ŽǀĞƌ ƚŚĞ ƚŚĞŵƚŽĐĂƌƌLJŽƵƚĐĂƐŚůĞƐƐƚƌĂŶƐĂĐƟŽŶƐƚŚƌŽƵŐŚŽƵƚƚŚĞ LJĞĂƌ͕ƌĞĂĐŚŝŶŐ<,Zϯ͕ϵϳϬ͕ϴϱϲŵŝůůŝŽŶ;ĐĂ͘h^ΨϵϳϰŵŝůůŝŽŶͿ ĐŽƵŶƚƌLJ͘ŵƌĞƚŝƐŶŽǁĂůƐŽŽīĞƌŝŶŐĂĐĐĞƐƐƚŽĂīŽƌĚĂďůĞ ǁŚŝůĞ ŵĂŝŶƚĂŝŶŝŶŐ ĂŶ ĞdžĐĞůůĞŶƚ ƉŽƌƞŽůŝŽ ƋƵĂůŝƚLJ ǁŝƚŚ ĂŶĚĨĂƐƚůŽĂŶƐŝŶůĞƐƐƚŚĂŶϮϰŚŽƵƌƐƚŚƌŽƵŐŚŽƵƌĚŽŽƌƐƚĞƉ WZϯϬĂƚϬ͘ϭϱй͘dŚŝƐŝƐƚŚĞďĞƐƚƉŽƌƞŽůŝŽƋƵĂůŝƚLJŝŶƚŚĞ ŵŽďŝůĞ ƐĂǀŝŶŐ ƐĞƌǀŝĐĞ ĨŽƌ ŽƵƌ ƌĞŐƵůĂƌ ƐŵĂůů ĚĞƉŽƐŝƚŽƌƐ͕ ĂŵďŽĚŝĂŶ ĮŶĂŶĐŝĂů ŝŶĚƵƐƚƌLJ ĂŶĚ ƐŚŽǁƐ ŽƵƌ ĐŽŶƟŶƵĞĚ ŵĂŝŶůLJĨĞŵĂůĞŵĂƌŬĞƚƐĞůůĞƌƐ͘ ĐŽŵŵŝƚŵĞŶƚƚŽƌĞƐƉŽŶƐŝďůĞůĞŶĚŝŶŐƉƌĂĐƟĐĞƐ͘dŚŝƐLJĞĂƌ ǁĂƐ ĞƐƉĞĐŝĂůůLJ ŐŽŽĚ ĨŽƌ ĚĞƉŽƐŝƚƐ͕ ǁŚŝĐŚ ŐƌĞǁ Ϯϭй ƚŽ /Ŷ ^ĞƉƚĞŵďĞƌ ϮϬϭϵ͕ ǁĞ ƵŶǀĞŝůĞĚ Ă ŶĞǁ ůŽŐŽ ĂƐ ƉĂƌƚ ŽĨ ƌĞĂĐŚ<,ZϮ͕ϮϬϳ͕ϮϳϵŵŝůůŝŽŶ;ĐĂ͘h^ΨϱϰϮŵŝůůŝŽŶͿ͘dŚĂŶŬƐ ŽƵƌ ƌĞďƌĂŶĚŝŶŐ͕ ŚŝŐŚůŝŐŚƟŶŐ ŽƵƌ ƌŽůĞ ĂƐ Ă ƌĞƐƉŽŶƐŝďůĞ ƚŽ ƚŚĞ ƉƵďůŝĐ͛Ɛ ƐƵƐƚĂŝŶĞĚ ĐŽŶĮĚĞŶĐĞ ŝŶ ŵƌĞƚ ĂŶĚ ŽƵƌ ĂŶĚƚƌĂŶƐƉĂƌĞŶƚƉůĂLJĞƌĂŶĚŽƵƌƐƚƌŽŶŐƌĞůĂƟŽŶƐŚŝƉǁŝƚŚ ŝŵƉƌŽǀĞĚďƌĂŶĚŝŵĂŐĞ͕ŵƵĐŚŽĨƚŚŝƐŐƌŽǁƚŚĐĂŵĞĨƌŽŵ ĐůŝĞŶƚƐǁŚŽĂƌĞůŝŬĞĨĂŵŝůLJƚŽƵƐ͘dŚƌŽƵŐŚŽƵƌƉĞƌƐŽŶĂůŝnjĞĚ ĚĞŵĂŶĚ ƌĞƚĂŝů ĚĞƉŽƐŝƚƐ͘ dŚĞƐĞ ĞdžĐĞůůĞŶƚ ŽƉĞƌĂƟŽŶĂů ƐĞƌǀŝĐĞƐ͕ŽƵƌĐůŝĞŶƚƐĚŽŶŽƚĨĞĞůůŝŬĞƚŚĞLJĂƌĞƚƌĞĂƚĞĚĂƐ ƌĞƐƵůƚƐƚƌĂŶƐůĂƚĞĚŝŶƚŽĂŶĞƚƉƌŽĮƚŽĨ<,Zϭϯϵ͕ϮϬϲŵŝůůŝŽŶ ũƵƐƚ ĂŶŽƚŚĞƌ ŶƵŵďĞƌ ŝŶ ŽƵƌ ƌĞĐŽƌĚ ďŽŽŬƐ͘ tĞ ĐŽŶƟŶƵĞ ;ĐĂ͘h^Ψϯϰ͘ϯŵŝůůŝŽŶͿ͘ ďƵŝůĚŝŶŐ ƐƚƌŽŶŐ ĂŶĚ ĚŝƐƟŶĐƟǀĞ ǀĂůƵĞ ƉƌŽƉŽƐŝƟŽŶƐ ĨŽƌ ŽƵƌ ŬĞLJ ƐĞŐŵĞŶƚƐ͕ ŝŶĐůƵĚŝŶŐ ŵŝĐƌŽ͕ ƐŵĂůů ĂŶĚ ŵĞĚŝƵŵ tĞĂůƐŽƉĂƐƐĞĚƚŚĞŵŝůĞƐƚŽŶĞŽĨƌĞĂĐŚŝŶŐh^ΨϭŝůůŝŽŶ ďƵƐŝŶĞƐƐĞƐĂŶĚĨĂƌŵĞƌƐ͘ ŝŶ ĂƐƐĞƚƐ͕ ƐŚŽǁŝŶŐ ƚŚĞ ĚĞǀĞůŽƉŵĞŶƚ ĂŶĚ ƐƚƌĞŶŐƚŚ ŽĨ 14 2XU3URƬOH Annual Report 2019 Message from the &(2 tĞ ǁĞƌĞ ŚŽŶŽƌĞĚ ǁŝƚŚ ƐŝĂ͛Ɛ ĞƐƚ ŵƉůŽLJĞƌ ŶĞǁ ĚŝŐŝƚĂů ŝŶŶŽǀĂƟŽŶƐ ƚŽ ƉƌŽǀŝĚĞ ĞǀĞŶ ďĞƩĞƌ ƌĂŶĚŝŶŐ ǁĂƌĚ ϮϬϭϵ͕ ĂŶ ŝŶƚĞƌŶĂƟŽŶĂůůLJ ĂĐĐĞƐƐĂŶĚĞdžƉĞƌŝĞŶĐĞĨŽƌĐůŝĞŶƚƐ͘ ƌĞĐŽŐŶŝnjĞĚ ĂǁĂƌĚ ƚŽ ŝŶƐƟƚƵƟŽŶƐ͕ ǁŚŝĐŚ tĞ ǁŝůů ĐŽŶƟŶƵĞ ƚŽ ŐƌŽǁ ďLJ ĨŽĐƵƐŝŶŐ ŽŶ ĚĞŵŽŶƐƚƌĂƚĞĞdžĐĞůůĞŶĐĞŝŶďƵŝůĚŝŶŐƚŚĞŝƌĞŵƉůŽLJĞƌ ĐƵƐƚŽŵĞƌƐ ĂŶĚ ƌĞůĂƟŽŶƐŚŝƉ ŵĂŶĂŐĞŵĞŶƚ ǁŝƚŚŝŶ ďƌĂŶĚ͘ dŚĞ ĂǁĂƌĚ ƌĞĐŽŐŶŝnjĞƐ ŽƵƌ ĐŽŶƚƌŝďƵƟŽŶ ŽƵƌ ŬĞLJ ƐĞŐŵĞŶƚƐ͘ ƵƐƚŽŵĞƌ ĐĞŶƚƌŝĐŝƚLJ ƌĞŵĂŝŶƐ ĂŶĚĐŽŵŵŝƚŵĞŶƚƚŽƉƵƫŶŐƐƚĂīĂƚƚŚĞĐĞŶƚĞƌŽĨ ŬĞLJ ŝŶ ĞǀĞƌLJƚŚŝŶŐ ǁĞ ĚŽ͘ KƵƌ Ăŝŵ ŝƐ ƚŽ ŵŽǀĞ ŽƵƌ ďƵƐŝŶĞƐƐ͘ /Ŷ ůŝŶĞ ǁŝƚŚ ƚŚŝƐ ĐŽŵŵŝƚŵĞŶƚ͕ ǁĞ ƚŽǁĂƌĚƐ ƉƌŽǀŝĚŝŶŐ ĐŽŶǀĞŶŝĞŶĐĞ ĂŶĚ ĚĞůŝǀĞƌŝŶŐ ŚĂǀĞ ŝŶƚĞŶƐŝĮĞĚ ŽƵƌ ŝŶƚĞƌŶĂů ĐŽŵŵƵŶŝĐĂƟŽŶƐ͕ ĚŝīĞƌĞŶƟĂƚĞĚ ĐƵƐƚŽŵĞƌ ĞdžƉĞƌŝĞŶĐĞƐ͘ EĞǁ ĚŝŐŝƚĂů ŝŵƉƌŽǀŝŶŐƐƚĂīĞŶŐĂŐĞŵĞŶƚĂƚĂůůůĞǀĞůƐ͕ĂŶĚďƵŝůƚ ĚĞůŝǀĞƌLJ ĐŚĂŶŶĞůƐ ĂŶĚ ƉĞƌƐŽŶĂů ŝŶƚĞƌĂĐƟŽŶ ĂƌĞ ǀĂƌŝŽƵƐƐƚĂīĚĞǀĞůŽƉŵĞŶƚƉƌŽŐƌĂŵƐŝŶĐůƵĚŝŶŐƚŚĞ ďŽƚŚ ŐĞŶĞƌĂƟŶŐ ŽƉƉŽƌƚƵŶŝƟĞƐ ĨŽƌ ĂĚĚŝŶŐ ǀĂůƵĞ DнƉƌŽŐƌĂŵĂŶĚĂƚĂůĞŶƚŵĂŶĂŐĞŵĞŶƚƉƌŽŐƌĂŵ ĨŽƌŽƵƌĐƵƐƚŽŵĞƌƐ͘tĞĂƌĞĐŽŵŵŝƩĞĚƚŽŵĂŬŝŶŐ ƚŽďƵŝůĚĐĂƉĂĐŝƚLJĂŶĚƐŬŝůůƐĨŽƌŵĂŶĂŐĞƌƐ͘tĞĂƌĞ ĐŽŶƟŶƵŽƵƐ ŝŵƉƌŽǀĞŵĞŶƚƐ ƚŽ ŝŶŶŽǀĂƚĞ ĂĐƌŽƐƐ Ă ďƵŝůĚŝŶŐŽƵƌƚĞĂŵǁŝƚŚĂƐƚƌŽŶŐĨŽĐƵƐŽŶŽƵƌǀĂůƵĞƐ ĐŽŵďŝŶĂƟŽŶ ŽĨ ĐŽŶǀĞŶŝĞŶƚ ĐŚĂŶŶĞůƐ ĨŽƌ ĐůŝĞŶƚƐ ĂŶĚ Ă ŚŝŐŚͲƉĞƌĨŽƌŵŝŶŐ ĐƵůƚƵƌĞ͘ dŚĞƐĞ ŝŶŝƟĂƟǀĞƐ ŝŵƉůĞŵĞŶƟŶŐĂŚŝŐŚͲƚŽƵĐŚĂŶĚŚŝŐŚͲƚĞĐŚŵŝdž͘ ǁŝůůĐŽŶƟŶƵĞƚŽďĞŚŝŐŚƉƌŝŽƌŝƚLJŝŶƚŚĞĨƵƚƵƌĞ͘ ĞŝŶŐĂŐƌĞĂƚƉůĂĐĞƚŽǁŽƌŬŝƐĂŶŽƚŚĞƌŵĂŝŶĚƌŝǀĞƌ͘ tĞƌĞŵĂŝŶĨŽĐƵƐĞĚŽŶŝŵƉƌŽǀŝŶŐŽƵƌŽƉĞƌĂƟŽŶĂů &ŽƐƚĞƌŝŶŐƚĞĂŵǁŽƌŬĂŶĚĐŽůůĂďŽƌĂƟŽŶŝƐĞƐƐĞŶƟĂů ĞĸĐŝĞŶĐLJ͘ tĞ ĞŶŚĂŶĐĞĚ ŽƵƌ ƐƚƌĂƚĞŐŝĐ ƌŝƐŬ ƚŽ ĞŶƌŝĐŚŝŶŐ ŽƵƌ ĐŽƌƉŽƌĂƚĞ ĐƵůƚƵƌĞ͘ tĞ ďĞůŝĞǀĞ Ă ĨƌĂŵĞǁŽƌŬ ƚŽ ĞŶƐƵƌĞ ŚĞĂůƚŚLJ ŐƌŽǁƚŚ ƚŚƌŽƵŐŚ ŚƵŵĂŶ ĐĞŶƚĞƌĞĚ ĐƵůƚƵƌĞ ŝƐ Ă ƐƚƌŽŶŐ ĨŽƵŶĚĂƟŽŶ ĐŽŶƐƚĂŶƚůLJ ĂƐƐĞƐƐŝŶŐ ĂŶĚ ƐƚƌĞŶŐƚŚĞŶŝŶŐ ƉŽůŝĐŝĞƐ ĨŽƌ ƐƵƐƚĂŝŶĞĚ ŐƌŽǁƚŚ ĂŶĚ ƐƵĐĐĞƐƐ͘ dŚŝƐ ŝŶĐůƵĚĞƐ ĂŶĚ ĐŽŶƚƌŽůƐ͘ tĞ ŚĂǀĞ ƉŽůŝĐŝĞƐ ĂŶĚ ŐƵŝĚĞůŝŶĞƐ ĐƌĞĂƟŶŐ Ă ĨĂǀŽƌĂďůĞ ǁŽƌŬŝŶŐ ĞŶǀŝƌŽŶŵĞŶƚ ĂŶĚ ǁŚŝĐŚ ĐŽŵƉůLJ ǁŝƚŚ ŚŝŐŚ ŝŶƚĞƌŶĂƟŽŶĂů ƐƚĂŶĚĂƌĚƐ ŚĞůƉŝŶŐ ŽƵƌ ĞŵƉůŽLJĞĞƐ ŐĂŝŶ ƚŚĞ ƐŬŝůůƐ ŶĞĞĚĞĚ ƚŽ ĂƐƉƌŽǀĞŶďLJŽƵƌŐƌĂĚĞĮŶĂŶĐŝĂůƌĂƟŶŐĨŽƌϮϬϭϵ ƚŚƌŝǀĞŝŶƚŚĞǁŽƌŬƉůĂĐĞŽĨƚŚĞĨƵƚƵƌĞ͘ ĨƌŽŵDŝĐƌŽĮŶĂŶnjĂ͘ ƐŵLJĮƌƐƚLJĞĂƌĂƐ K͕ŝƚŝƐŵLJƉƌŝǀŝůĞŐĞƚŽĞdžƚĞŶĚ ƚ ŵƌĞƚ͕ ǁĞ ďĞůŝĞǀĞ ŽƵƌ ƌĞƐƉŽŶƐŝďŝůŝƚLJ ŐŽĞƐ ƐŝŶĐĞƌĞƚŚĂŶŬƐƚŽƚŚĞŽĂƌĚŽĨŝƌĞĐƚŽƌƐĨŽƌƚŚĞŝƌ ďĞLJŽŶĚ ďƵƐŝŶĞƐƐ͖ ǁĞ ĂůƐŽ Ăŝŵ ƚŽ ƐƵƉƉŽƌƚ ƚŚĞ ĂĚǀŝĐĞ ĂŶĚ ŐƵŝĚĂŶĐĞ͕ ƚŽ ŽƵƌ ƐŚĂƌĞŚŽůĚĞƌƐ ĨŽƌ ŝŵƉƌŽǀĞŵĞŶƚŽĨƋƵĂůŝƚLJŽĨůŝĨĞĨŽƌŽƵƌĐůŝĞŶƚƐĂŶĚƚŚĞ ƚŚĞŝƌ ƐƵƉƉŽƌƚ ĂŶĚ ƌĞĂĸƌŵ ŽƵƌ ĐŽŵŵŝƚŵĞŶƚ ƚŽ ĐŽŵŵƵŶŝƟĞƐǁĞƐĞƌǀĞƚŚƌŽƵŐŚĞŵƉŽǁĞƌŝŶŐƚŚĞŵ͘ ĚĞůŝǀĞƌŝŶŐ ŽƵƌ ƐĞƌǀŝĐĞƐ ǁŝƚŚ ŝŵƉĂĐƚ͘ dŚĂŶŬƐ ƚŽ tĞĂƌĞƉƌŽƵĚƚŽďĞŽŶĞŽĨƚŚĞŵŽƐƚƌĞƐƉŽŶƐŝďůĞ ƚŚĞZŽLJĂů'ŽǀĞƌŶŵĞŶƚŽĨĂŵďŽĚŝĂƌĞƉƌĞƐĞŶƟŶŐ ĮŶĂŶĐŝĂů ŝŶƐƟƚƵƟŽŶƐ ĂŶĚ ŽŶĞ ŽĨ ƚŚĞ ĨĞǁ ϭϬϬ &/Ɛ ƚŚĞ EĂƟŽŶĂů ĂŶŬ ŽĨ ĂŵďŽĚŝĂ͕ ĂŵďŽĚŝĂŶ ĂĐƌŽƐƐ ƚŚĞ ŐůŽďĞ ƚŽ ŚĂǀĞ ƌĞĐĞŝǀĞĚ ^DZd ůŝĞŶƚ DŝĐƌŽĮŶĂŶĐĞ ƐƐŽĐŝĂƟŽŶ ĂŶĚ Ăůů ŽĨ ŽƵƌ ƉĂƌƚŶĞƌƐ WƌŽƚĞĐƟŽŶ WƌŝŶĐŝƉůĞ ĞƌƟĮĐĂƟŽŶ͘ tĞ ĞŶĐŽƵƌĂŐĞ ĨŽƌƚŚĞŝƌĐŽůůĂďŽƌĂƟŽŶĂŶĚƉĂƌƚŶĞƌƐŚŝƉ͘ ŽƵƌ ƐƚĂī ƚŽ ůĞǀĞƌĂŐĞ ƚŚĞŝƌ ƐŬŝůůƐ ĂŶĚ ĞdžƉĞƌƟƐĞ ƚŽ ŵĂŬĞ ŵĞĂŶŝŶŐĨƵů ĐŽŶƚƌŝďƵƟŽŶƐ ƚŽ ƚŚĞ ůŝǀĞƐ ŽĨ DŽƌĞ ƚŚĂŶ ϰ͕ϱϬϬ ƐƚĂī ŚĂǀĞ ƐƚƌŽŶŐůLJ ĐŽŶƚƌŝďƵƚĞĚ ĐƵƐƚŽŵĞƌƐĂŶĚƚŚĞŝƌĐŽŵŵƵŶŝƟĞƐǁŝƚŚŵŽƌĞƚŚĂŶ ƚŽ ŽƵƌ ĂĐŚŝĞǀĞŵĞŶƚƐ ƚŚƌŽƵŐŚŽƵƚ ƚŚĞ LJĞĂƌ͘ / Ăŵ Ϯ͕ϬϬϬ ƐƚĂī ƉĂƌƟĐŝƉĂƟŶŐ ŝŶ ƚŚĞ ƌĞĨƌĞƐŚĞƌ ƚƌĂŝŶŝŶŐ ĞƐƉĞĐŝĂůůLJŐƌĂƚĞĨƵůƚŽĞĂĐŚŽŶĞŽĨƚŚĞŵ͘/ǁŽƵůĚĂůƐŽ ŽŶƚŚĞůŝĞŶƚWƌŽƚĞĐƟŽŶWƌŝŶĐŝƉůĞƐ͘tĞĂůƐŽǁŽƌŬ ůŝŬĞƚŽƚŚĂŶŬŽƵƌĐƵƐƚŽŵĞƌƐĨŽƌƚŚĞŝƌůŽLJĂůƐƵƉƉŽƌƚ ǁŝƚŚŐŽǀĞƌŶŵĞŶƚĂŶĚŶŽŶͲŽƌŐĂŶŝnjĂƟŽŶĂůƉĂƌƚŶĞƌƐ ĂŶĚĂůůŽƵƌƐƚĂŬĞŚŽůĚĞƌƐĨŽƌƚŚĞŝƌĐŽŶƟŶƵĞĚƚƌƵƐƚ͘ ƚŽ ĐĂƌƌLJ ŽƵƚ ŽƵƌ ƐŽĐŝĂů ŵŝƐƐŝŽŶ͘ ^ŝŶĐĞ ϮϬϭϭ͕ ǁĞ ϮϬϭϵǁĂƐĂŶŽƚŚĞƌLJĞĂƌŽĨƐƵĐĐĞƐƐĂŶĚŝŶƐƉŝƌĂƟŽŶ ŚĂǀĞƉƌŽǀŝĚĞĚĂŐƌŝĐƵůƚƵƌĂůĂŶĚĮŶĂŶĐŝĂůĞĚƵĐĂƟŽŶ ĨŽƌ ŽƵƌ ĨƵƚƵƌĞ͊ / ůŽŽŬ ĨŽƌǁĂƌĚ ƚŽ ĐŽŶƟŶƵŝŶŐ ŽƵƌ ƚƌĂŝŶŝŶŐ ƚŽ ĂůŵŽƐƚ ϭϱ͕ϬϬϬ ĨĂƌŵĞƌƐ͕ ƐŵĂůů ĂŶĚ ǁŽƌŬƚŽŐĞƚŚĞƌ͘ ŵŝĐƌŽ ďƵƐŝŶĞƐƐĞƐ͕ ǁŝƚŚ ŵŽƌĞ ƚŚĂŶ ϵ͕ϬϬϬ ĨĞŵĂůĞ ƉĂƌƟĐŝƉĂŶƚƐ͘ Dos Dinn ƐǁĞůŽŽŬŝŶƚŽϮϬϮϬĂŶĚďĞLJŽŶĚ͕ǁĞƐƚĂŶĚƌĞĂĚLJ ŚŝĞĨ džĞĐƵƟǀĞKĸĐĞƌ ĨŽƌ ŽƵƌ ĨƵƚƵƌĞ Ͳ ĨƵůĮůůŝŶŐ ŽƵƌ ŵŝƐƐŝŽŶ ŽĨ ƌĞĂĐŚŝŶŐ ŽƵƚƚŽƵŶĚĞƌƐĞƌǀĞĚƉŽƉƵůĂƟŽŶƐǁŝƚŚĂƉƉƌŽƉƌŝĂƚĞ ĮŶĂŶĐŝĂů ĂŶĚ ŶŽŶͲĮŶĂŶĐŝĂů ƐĞƌǀŝĐĞƐ͕ ůĞǀĞƌĂŐŝŶŐ 2XU3URƬOH Annual Report 2019 15 Executive Committee 16 2XU3URƬOH Annual Report 2019 'RV'LQQ&KLHI([HFXWLYH2ƯFHU ŝŶŶǁĂƐĂƉƉŽŝŶƚĞĚĂƐƚŚĞŚŝĞĨ džĞĐƵƟǀĞKĸĐĞƌŝŶ:ĂŶƵĂƌLJϮϬϭϵ͘,ŝƐĐĂƌĞĞƌĂƚŵƌĞƚƐƚĂƌƚĞĚŝŶϭϵϵϲĂƐƐƵƉĞƌǀŝƐŽƌŽĨ ƉƌŽǀŝŶĐŝĂůŽĸĐĞ͘,ĞƚƌĂŶƐĨĞƌƌĞĚƚŽƚŚĞWƌŽĚƵĐƚĞǀĞůŽƉŵĞŶƚhŶŝƚƚǁŽLJĞĂƌƐůĂƚĞƌĂŶĚƉƌŽŐƌĞƐƐĞĚƚŚƌŽƵŐŚƚŚĞĐŽŵƉĂŶLJƚŽ ďĞĐŽŵĞŽƉĞƌĂƟŽŶƐŵĂŶĂŐĞƌŝŶϭϵϵϵĂŶĚƚŚĞŶĐŚŝĞĨŽƉĞƌĂƟŽŶƐŽĸĐĞƌĨƌŽŵϮϬϬϴͲϮϬϭϭ͘ŝŶŶǁĂƐĂƉƉŽŝŶƚĞĚĂƐĞƉƵƚLJŚŝĞĨ džĞĐƵƟǀĞKĸĐĞƌŝŶ&ĞďƌƵĂƌLJϮϬϭϭďĞĨŽƌĞĂƉƉŽŝŶƚĞĚĂƐ K͘ŝŶŶŚŽůĚƐĂŶDĨƌŽŵƚŚĞhƚĂƌĂhŶŝǀĞƌƐŝƚLJŽĨDĂůĂLJƐŝĂ͕ĂŶĚ ĂďĂĐŚĞůŽƌ͛ƐĚĞŐƌĞĞĨƌŽŵƚŚĞZŽLJĂůhŶŝǀĞƌƐŝƚLJŽĨŐƌŝĐƵůƚƵƌĞ͕ĂŵďŽĚŝĂ͘ (VWHOOH'DULH5RXVVHDX[Executive Director ƐƚĞůůĞŝƐ džĞĐƵƟǀĞŝƌĞĐƚŽƌƐŝŶĐĞ:ĂŶƵĂƌLJϮϬϭϴ͘^ŚĞƐƚĂƌƚĞĚŚĞƌĐĂƌĞĞƌŝŶƌƵƌĂůĚĞǀĞůŽƉŵĞŶƚŝŶϮϬϬϬ͕ďĞĨŽƌĞũƵŵƉŝŶŐŝŶ ŵŝĐƌŽĮŶĂŶĐĞŝŶϮϬϬϯ͘^ŚĞǁŽƌŬĞĚĂƐĂĐŽŶƐƵůƚĂŶƚĨŽƌ,ŽƌƵƐ͕ũŽŝŶĞĚĚǀĂŶƐŐƌŽƵƉĂƚŝƚƐĐƌĞĂƟŽŶ͕ĂŶĚƵŶĚĞƌƚŽŽŬǀĂƌŝŽƵƐ ĂƐƐŝŐŶŵĞŶƚƐŝŶƚŚĞŚĞĂĚƋƵĂƌƚĞƌƐĂŶĚŝŶƐĞǀĞƌĂůĂĸůŝĂƚĞƐ͘^ŚĞǁĂƐŚŝĞĨKƉĞƌĂƟŽŶƐKĸĐĞƌĨŽƌĚǀĂŶƐ'ŚĂŶĂ͕ĞƉƵƚLJŚŝĞĨ džĞĐƵƟǀĞKĸĐĞƌĨŽƌĚǀĂŶƐĂŶŬdĂŶnjĂŶŝĂ;ŶŽǁ>ĞƚƐŚĞŐŽĂŶŬdͿ͘^ŚĞŚŽůĚƐĂŵĂƐƚĞƌ͛ƐĚĞŐƌĞĞŝŶĂŐƌŝĐƵůƚƵƌĂůĞŶŐŝŶĞĞƌŝŶŐ ĂŶĚĞĐŽŶŽŵŝĐƐ͕ĨƌŽŵƚŚĞ/ŶƐƟƚƵƚEĂƟŽŶĂůŐƌŽŶŽŵŝƋƵĞWĂƌŝƐͲ'ƌŝŐŶŽŶ͕&ƌĂŶĐĞ͘ 7DQ /LP6RSKD&KLHI+XPDQ5HVRXUFHV2ƯFHU ^ŽƉŚĂǁĂƐĂƉƉŽŝŶƚĞĚŚŝĞĨ,ƵŵĂŶZĞƐŽƵƌĐĞƐKĸĐĞƌŝŶ^ĞƉƚĞŵďĞƌϮϬϭϲ͘ƵƌŝŶŐŚĞƌƐĞƌǀŝĐĞŽĨϮϮLJĞĂƌƐ͕ƐŚĞĂĚǀĂŶĐĞĚĨƌŽŵ WƌŽǀŝŶĐŝĂů^ƵƉĞƌǀŝƐŽƌƚŽŚŝĞĨĐĐŽƵŶƚĂŶƚĂŶĚƚŚĞŶƚŽ,ĞĂĚŽĨ&ŝŶĂŶĐĞ͕ďĞĨŽƌĞĐŚĂŶŐŝŶŐĐĂƌĞĞƌĚŝƌĞĐƟŽŶŝŶϮϬϭϮƚŽŚĞĂĚ ƚŚĞ,ƵŵĂŶZĞƐŽƵƌĐĞƐĞƉĂƌƚŵĞŶƚ͘^ŽƉŚĂŝƐƉĂƐƐŝŽŶĂƚĞĂďŽƵƚĞŵƉŽǁĞƌŝŶŐƉĞŽƉůĞƚŽƌĞĂůŝnjĞƚŚĞŝƌƉŽƚĞŶƟĂůĂŶĚĂĐŚŝĞǀĞ ƚŚĞŝƌŐŽĂůƐ͕ĂŶĚŚĂƐďĞĞŶĂĐƟǀĞůLJŝŶǀŽůǀĞĚŝŶĚĞǀĞůŽƉŝŶŐĂŶĚŝŵƉůĞŵĞŶƟŶŐŵƌĞƚ͛Ɛ>ĞĂƌŶŝŶŐĂŶĚĞǀĞůŽƉŵĞŶƚ^ƚƌĂƚĞŐLJ͘ ^ŚĞŚŽůĚƐĂŶDĨƌŽŵŚĂƌůĞƐ^ƚƵƌƚhŶŝǀĞƌƐŝƚLJ͕ƵƐƚƌĂůŝĂ͕ĂŶĚĂŝŶ ŶƚƌĞƉƌĞŶĞƵƌƐŚŝƉĨƌŽŵƚŚĞ&ĂĐƵůƚLJŽĨ ĐŽŶŽŵŝĐƐĂŶĚ ^ĐŝĞŶĐĞ͕WŚŶŽŵWĞŶŚ͘ 6260HDWK&KLHI,QWHUQDO$XGLW2ƯFHU DĞĂƚŚ ǁĂƐ ƉƌŽŵŽƚĞĚ ƚŽ ďĞ ŚŝĞĨ ŽĨ /ŶƚĞƌŶĂů ƵĚŝƚ KĸĐĞƌ ŝŶ :ĂŶƵĂƌLJ ϮϬϭϵ͘ ,Ğ ǁŽƌŬĞĚ ǁŝƚŚ ŵƌĞƚ ĨŽƌ ŵŽƌĞ ƚŚĂŶ ϭϱ LJĞĂƌƐ͘,ĞĮƌƐƚũŽŝŶĞĚŵƌĞƚĂƐ:ƵŶŝŽƌ/ŶƚĞƌŶĂůƵĚŝƚŽƌŝŶϮϬϬϯĂŶĚƉƵƌƐƵĞĚǀĂƌŝŽƵƐƌŽůĞƐĂƐ^ĞŶŝŽƌ/ŶƚĞƌŶĂůƵĚŝƚŽƌ;ϮϬϬϰͿ͕ &ŝŶĂŶĐŝĂůƵĚŝƚhŶŝƚDĂŶĂŐĞƌ;ϮϬϬϳͿ͕ĞƉƵƚLJ,ĞĂĚŽĨ/ŶƚĞƌŶĂůƵĚŝƚ;ϮϬϬϴͿ͕ĂŶĚ,ĞĂĚŽĨ/ŶƚĞƌŶĂůƵĚŝƚ;ϮϬϭϭͿ͘DĞĂƚŚŚŽůĚƐ ĂĂĐŚĞůŽƌĞŐƌĞĞŽĨƵƐŝŶĞƐƐĚŵŝŶŝƐƚƌĂƟŽŶĨƌŽŵƚŚĞEĂƟŽŶĂůhŶŝǀĞƌƐŝƚLJŽĨDĂŶĂŐĞŵĞŶƚ;EhDͿĂŶĚĂŶDĨƌŽŵƵŝůĚ ƌŝŐŚƚhŶŝǀĞƌƐŝƚLJ;hͿ͘ 6DMMDG.KDQ&KLHI,QIRUPDWLRQ2ƯFHU ^ĂũũŽŝŶĞĚŵƌĞƚŝŶ:ƵŶĞϮϬϭϵĂŶĚŚĂƐďĞĞŶĚƌŝǀŝŶŐƚŚĞĚŝŐŝƚĂůƚƌĂŶƐĨŽƌŵĂƟŽŶƉƌŽŐƌĂŵǁŝƚŚƐŽůƵƟŽŶƐĨŽĐƵƐĞĚŽŶŐƌŽǁƚŚ͕ ƉƌŽĚƵĐƟǀŝƚLJ͕ŝŶŶŽǀĂƟŽŶ͕ŐŽǀĞƌŶĂŶĐĞĂŶĚƐĞĐƵƌŝƚLJ͘^ĂũũĂĚŚĂƐĞdžƚĞŶƐŝǀĞŝŶƚĞƌŶĂƟŽŶĂůĞdžƉĞƌŝĞŶĐĞŚĂǀŝŶŐƐƉĞŶƚϭϳLJĞĂƌƐǁŝƚŚ ' ĂƉŝƚĂůŝŶǀĂƌŝŽƵƐůĞĂĚĞƌƐŚŝƉƌŽůĞƐ͘WƌŝŽƌƚŽũŽŝŶŝŶŐŵƌĞƚ͕^ĂũũĂĚǁŽƌŬĞĚĂƐĂĐŽŶƐƵůƚĂŶƚǁŝƚŚƐĞǀĞƌĂůƉƌŝǀĂƚĞĂŶĚƉƵďůŝĐ ƐĞĐƚŽƌŽƌŐĂŶŝnjĂƟŽŶƐŽŶďƵƐŝŶĞƐƐŐƌŽǁƚŚĂŶĚƚƌĂŶƐĨŽƌŵĂƟŽŶŝŶŝƟĂƟǀĞƐ͘^ĂũũĂĚŚŽůĚƐĂ^ĐŝŶƵƐŝŶĞƐƐDĂŶĂŐĞŵĞŶƚ͕D^ĐŝŶ ŽŵƉƵƚĞƌ^ĐŝĞŶĐĞ͕ džĞĐƵƟǀĞDĂŶĚŝŶƚŚĞƉƌŽĐĞƐƐŽĨĐŽŵƉůĞƟŶŐŚŝƐƉĂƌƚƟŵĞŽĐƚŽƌĂƚĞ͘ $ODQ:HH&KLHI&RPPHUFLDO2ƯFHU ůĂŶǁĂƐĂƉƉŽŝŶƚĞĚƚŽŚŝƐĐƵƌƌĞŶƚƌŽůĞǁŝƚŚŵƌĞƚĂƐŚŝĞĨŽŵŵĞƌĐŝĂůKĸĐĞƌŝŶ:ĂŶϮϬϮϬ͘,ĞďĞŐĂŶŚŝƐďĂŶŬŝŶŐĐĂƌĞĞƌ ǁŝƚŚŝƟďĂŶŬDĂůĂLJƐŝĂŝŶƌĞƚĂŝůďĂŶŬŝŶŐďĞĨŽƌĞƉƌŽŐƌĞƐƐŝŶŐĂƐĂZĞƚĂŝůĂŶŬŝŶŐ,ĞĂĚǁŝƚŚǀĂƌŝŽƵƐŝŶƚĞƌŶĂƟŽŶĂůĮŶĂŶĐŝĂů ŝŶƐƟƚƵƟŽŶƐŝŶDĂůĂLJƐŝĂΘŝŶŚŝŶĂ͘ůĂŶŚĂƐĂĐĐƌƵĞĚŽǀĞƌϮϱLJĞĂƌƐŽĨƌĞƚĂŝůďĂŶŬŝŶŐĞdžƉĞƌŝĞŶĐĞ͖ŝŶĐůƵĚŝŶŐ/ƐůĂŵŝĐƌĞƚĂŝů ďĂŶŬŝŶŐ͕ŵŝĐƌŽĮŶĂŶĐŝŶŐĂŶĚĮŶƚĞĐŚ͘ůĂŶŚŽůĚƐĂĂĐŚĞůŽƌĞŐƌĞĞĨƌŽŵ^ŽƵƚŚĞĂƐƚDŝƐƐŽƵƌŝ^ƚĂƚĞhŶŝǀĞƌƐŝƚLJĂŶĚĂŶD ĨƌŽŵtĂƐŚŝŶŐƚŽŶhŶŝǀĞƌƐŝƚLJŽĨ^ƚ>ŽƵŝƐ͘ 3DUWKD7KDNXUWD&KLHI5LVNV2ƯFHU WĂƌƚŚĂǁĂƐĂƉƉŽŝŶƚĞĚĂƐZKŝŶDĂƌĐŚϮϬϮϬ͘,ĞũŽŝŶĞĚĨƌŽŵƚŚĞDŝĚĚůĞ ĂƐƚĂŶĚŚĂƐŽǀĞƌϮϱLJĞĂƌƐŽĨĞdžƉĞƌŝĞŶĐĞŝŶďĂŶŬŝŶŐ ĂŶĚĐŽŶƐƵůƟŶŐďLJǁŽƌŬŝŶŐŝŶƐŝĂ͕h ĂŶĚh<͘,ĞƐƉĞŶƚŚŝƐŝŶŝƟĂůLJĞĂƌƐĂƐĂĐŽŶƐƵůƚĂŶƚďĞĨŽƌĞŵŽǀŝŶŐŝŶƚŽďĂŶŬŝŶŐŝŶĚƵƐƚƌLJ ǁŚĞƌĞŚĞǁŽƌŬĞĚŝŶǀĂƌŝŽƵƐůĞĂĚĞƌƐŚŝƉƌŽůĞƐŝŶZŝƐŬĂŶĚĂƵĚŝƚ͘WĂƌƚŚĂŝƐĂ,ĂƌǀĂƌĚƵƐŝŶĞƐƐ^ĐŚŽŽůůƵŵŶŝĂŶĚŝƐĂŚĂƌƚĞƌĞĚ ĂŶĚŽƐƚĐĐŽƵŶƚĂŶƚĨƌŽŵ/ŶĚŝĂ͘ 2XU3URƬOH Annual Report 2019 17 Our Brand6WRU\ 7KH-RXUQH\ %HLQJ$PUHWDQG :KDW:H6WDQG)RU ŵƌĞƚĨŽƌŵĞƌůLJŬŶŽǁŶĂƐ DdǁĞƌĞĞƐƚĂďůŝƐŚĞĚŝŶϭϵϵϭ ĂŶĚǁĞƌĞƚŚĞϭƐƚD&/ƚŽďĞŝƐƐƵĞĚĂŶŽƉĞƌĂƟŶŐůŝĐĞŶƐĞ EϬϬϭ ĨƌŽŵ ƚŚĞ EĂƟŽŶĂů ĂŶŬ ŽĨ ĂŵďŽĚŝĂ͘ tĞ ƚŚĞŶ ŵƌĞƚŝŶ<ŚŵĞƌŵĞĂŶƐ͚>ŽŶŐ>ŝĨĞ͕͚͛ŝŵŵŽƌƚĂůŝƚLJ͛Žƌ͚ŵĂŐŝĐĂů ŽƉĞƌĂƚĞĚ ĂƐ ŵƌĞƚ ŝŶ ϮϬϬϰ ĂƐ ǁĞ ďĞŐĂŶ ŽƵƌ ũŽƵƌŶĞLJ ǁĂƚĞƌ͕͛ ĂŶĚ ƚƌĂĚŝƟŽŶĂůůLJ ŝƚ ĂůƐŽ ŵĞĂŶƐ ͚ŝŵƉƌŽǀĞŵĞŶƚ ĂƐ Ă ůĞĂĚŝŶŐ ĮŶĂŶĐŝĂů 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Officer Transformation Department Commercial IT Security Unit Department Chief Commercial Officer Marketing Human Resources Department Department Chief Human Resources Officer Learning & Development Business Operation Department Department Chief Operation Officer Sales Financial Services Digital & Channel Department Delivery Department Chief Sale Officer Regional Offices Finance Compliance Unit Department Credit Risk Treasury Department Department Chief Finance Officer Integrated Risk Chief Risk Officer Strategic Planning Department Department Legal Department Administration Affairs Department Execuve Commiee Committees Under BoD direction Under management direction Audit Commiee Product Development Commiee Risk Oversight Commiee Asset and Liability Commiee Nominaon and Remuneraon Commiee Operaonal Risk Commiee Credit Risk Commiee Strategic Risk Commiee IT Steering Commiee 20 2XU3URƬOH Annual Report 2019 $PUHWoVFOLHQW7DNHRSURYLQFH 2XU3URƬOH Annual Report 2019 21 Business Performance &DPERGLDQ(FRQRPLF Performance dŚĞ ϮϬϭϵ 'W ŐƌŽǁƚŚ ĨŽƌ ĂŵďŽĚŝĂ ǁĂƐ ƌĞƉŽƌƚĞĚ Ăƚ ϳ͘ϭй ĐŽŵƉĂƌĞĚ ƚŽ ϳ͘ϱй ƌĞĐŽƌĚĞĚ ŝŶ ϮϬϭϴ͘ tŽƌůĚ ĂŶŬ ĂƩƌŝďƵƚĞĚƚŚŝƐƉĂĐĞŽĨƐůŽǁĞƌŐƌŽǁƚŚƚŽƐĞǀĞƌĂůĐŚĂůůĞŶŐĞƐ ĂƌŝƐŝŶŐĨƌŽŵĐůŝŵĂƚĞĐŚĂŶŐĞĐŽŶĐĞƌŶƐ͕ƚŚĞŽǀĞƌĂůůĚĞĐůŝŶĞ ŝŶŐůŽďĂůĚĞŵĂŶĚ͕ƚƌĂĚĞƚĞŶƐŝŽŶ͕ƉĂƌƟĂů ǁŝƚŚĚƌĂǁĂů ĞīĞĐƚ͕ůŽƐƐŽĨĐŽŵƉĞƟƟǀĞŶĞƐƐ͕ŽǀĞƌŚĞĂƟŶŐŽĨƌĞĂůĞƐƚĂƚĞ ĂŶĚĐŽŶƐƚƌƵĐƟŽŶƐĞĐƚŽƌďĞƐŝĚĞƐŵŽŶĞLJůĂƵŶĚĞƌŝŶŐŝƐƐƵĞƐ ƌĂŝƐĞĚďLJ h͘ dŽƚĂů ŝŶǀĞƐƚŵĞŶƚ ŝŶ ƚŚĞ ĮƌƐƚ ϵ ŵŽŶƚŚƐ ŽĨ ϮϬϭϵ ƌŽƐĞ ďLJ ϯϬй ĚƌŝǀĞŶ ŵĂŝŶůLJ ďLJ ĂŶ ŝŶĐƌĞĂƐĞ ŝŶ ƐĞƌǀŝĐĞ ƐĞĐƚŽƌ ŝ͘Ğ͕͘ ĐŽŶƐƚƌƵĐƟŽŶ ƐƵďͲƐĞĐƚŽƌ Ăƚ ůĂƌŐĞ͕ ǁŚŝůĞ ŝŶǀĞƐƚŵĞŶƚ ĨŽƌ ŝŶĚƵƐƚƌLJŐƌĞǁƐůŽǁůLJďLJϰй͕ĂŶĚĨŽƌĂŐƌŝĐƵůƚƵƌĞĚĞĐůŝŶĞĚ ĚƌĂŵĂƟĐĂůůLJďLJϴϵйĨƌŽŵƚŚĞƐĂŵĞƉĞƌŝŽĚŝŶƚŚĞƉƌĞǀŝŽƵƐ LJĞĂƌ͘ dŽƚĂů ĞdžƉŽƌƚƐ ŐƌĞǁ ďLJ ϭϯй ŝŶ ƚŚĞ ůĂƐƚ ϵ ŵŽŶƚŚƐ͘ džƉŽƌƚƐƚŽ hƌŽƐĞƐůŝŐŚƚůLJďLJŽŶůLJϯ͘ϰй͕ďĞůŝĞǀĞĚƚŽďĞ ĂīĞĐƚĞĚ ďLJ ƚŚĞ ƚŚƌĞĂƚ ŽĨ ǁŝƚŚĚƌĂǁĂů͕ ƐůŽǁĞƌ ƚŚĂŶ ƚŚĞ ƉƌĞǀŝŽƵƐ LJĞĂƌ ĞdžƉŽƌƚ ŐƌŽǁƚŚ ;ϭϱйͿ͘ DĞĂŶǁŚŝůĞ͕ ĞdžƉŽƌƚƐƚŽƚŚĞh^ŝŶĐƌĞĂƐĞĚďLJϰϱйĐŽŶƚƌŝďƵƚĞĚŵĂŝŶůLJ ďLJ ĂŶ ŝŶĐƌĞĂƐĞ ŝŶ ŐĂƌŵĞŶƚ ĞdžƉŽƌƚƐ͕ ƚŚĂŶŬƐ ƚŽ Ă ƌŝƐĞ ŝŶ ƚƌĂǀĞůůŝŶŐƉƌŽĚƵĐƚĞdžƉŽƌƚƐĂŌĞƌŽďƚĂŝŶŝŶŐ'^WƉƌŝǀŝůĞŐĞ͘ Ɛ Ă ƌĞƐƵůƚ͕ ĞdžƉŽƌƚƐ ƚŽ h^ ŽǀĞƌƚŽŽŬ ƚŚĂƚ ŽĨ h ĚƵƌŝŶŐ ƚŚĞĮƌƐƚϵŵŽŶƚŚƐŝŶϮϬϭϵ͘dŚĞŝŵƉŽƌƚƐŝƚƵĂƟŽŶƐŚŽǁƐĂŶ ŝŶĐƌĞĂƐĞŝŶůŽĐĂůĚĞŵĂŶĚƚŚĂƚŚĂƐŶŽƚďĞĞŶĨƵůĮůůĞĚďLJƚŚĞ ĚŽŵĞƐƟĐƉƌŽĚƵĐƟŽŶŽƌĂŶŝŵƉƌŽǀĞŵĞŶƚŽĨůŽĐĂůƐĞĐƚŽƌƐ͘ hƉƚŽϵŵŽŶƚŚƐŽĨϮϬϭϵ͕ƚŽƚĂůŝŵƉŽƌƚƐŐƌĞǁďLJϭϴйĨƌŽŵ ƚŚĞƉƌĞǀŝŽƵƐLJĞĂƌ͘dŚĞďŝŐŐĞƐƚĚƌŝǀĞƌǁĂƐĂŶŝŶĐƌĞĂƐĞŝŶ ĐŽŶƐƚƌƵĐƟŽŶ ŵĂƚĞƌŝĂů ŝŵƉŽƌƚƐ ǁŚŝĐŚ ĐĂŶ ďĞ ƐŚŽǁŶ ŝŶ Ă ŇŽƵƌŝƐŚŝŶŐ ĐŽŶƐƚƌƵĐƟŽŶ ƐĞĐƚŽƌ͘ DĞĂŶǁŚŝůĞ͕ ŝŵƉŽƌƚƐ ŽĨ ĨĂďƌŝĐ ĂŶĚ ĨĞƌƟůŝnjĞƌ ĚŝĚ ŶŽƚ ƐŚŽǁ Ă ƉŽƐŝƟǀĞ ƐŝŐŶ ĨŽƌ ŐĂƌŵĞŶƚĂŶĚĂŐƌŝĐƵůƚƵƌĞƐĞĐƚŽƌƐ͘&ĂďƌŝĐŝŵƉŽƌƚƐĚĞĐůŝŶĞĚ ďLJϰй͕ĂŶĚĨĞƌƟůŝnjĞƌĨĞůůďLJϴй͘ KŶƚŚĞŵŽŶĞƚĂƌLJƐŝĚĞĂƐŽĨ:ƵůLJϮϬϭϵ͕ƐƵƉƉůLJŽĨƌŝĞůŝŶƚŚĞ ŵĂƌŬĞƚĂŶĚďĂŶŬƐLJƐƚĞŵĂĐĐŽƵŶƚƐĨŽƌŽŶůLJϭϲйŽĨƚŽƚĂů DϮ͘ $PUHWoVFOLHQW.RK.RQJSURYLQFH 22 Our Performance Annual Report 2019 Outreach dŽƚĂůŶƵŵďĞƌŽĨĐůŝĞŶƚƐďLJĞŶĚŽĨϮϬϭϵǁĂƐ490,283͘dŚŝƐ 2019 ϰϵϬ͕Ϯϴϯ ŵĂƌŬĞĚĂŶŝŶĐƌĞĂƐĞŽĨĂďŽƵƚ8%ŽǀĞƌƚŚĞƉƌĞǀŝŽƵƐLJĞĂƌ͘ ϴϬй ŶĚ ƚŚĞ ŶƵŵďĞƌ ŽĨ ĐůŝĞŶƚƐ ĞƋƵŝƉƉĞĚ ǁŝƚŚ Ăƚ ůĞĂƐƚ ŽŶĞ 2018 ϰϱϭ͕ϵϰϳ ĚĞƉŽƐŝƚ ĂĐĐŽƵŶƚ ŝŶĐƌĞĂƐĞĚ ďLJ 12%͘ dŚŝƐ ŝƐ ƚŚĞ ƌĞƐƵůƚ ŽĨ ϳϴй ϰϬϭ͕ϭϰϲ ŝŶĐƌĞĂƐĞĚ ĞīŽƌƚ ƚŽ ŽīĞƌ ĐůŝĞŶƚƐ Ă ĨƵůů ƌĂŶŐĞ ŽĨ ĮŶĂŶĐŝĂů 2017 ϲϴй ƐĞƌǀŝĐĞƐƚŚƌŽƵŐŚĐƌŽƐƐƐĞůůŝŶŐ͘ EƵŵďĞƌŽĨĐƟǀĞůŝĞŶƚƐ KĨǁŚŝĐŚůŝĞŶƚƐǁŝƚŚĂƚůĞĂƐƚŽŶĞĚĞƉŽƐŝƚĂĐĐŽƵŶƚ /RDQ3RUWIROLR $FWLYH/RDQ$FFRXQWV dŚĞŶƵŵďĞƌŽĨŝŶĚŝǀŝĚƵĂůůŽĂŶĂĐĐŽƵŶƚƐŝŶϮϬϭϵŐƌĞǁďLJ 2019 120,585 192,637 ϯϭϯ͕ϮϮϮ 14%ĐŽŵƉĂƌĞĚƚŽϮϬϭϴĚƵĞƚŽĞīŽƌƚƐƚŽĞdžƉĂŶĚŵŝĐƌŽ͕ 2018 111,201 168,722 ƐŵĂůůďƵƐŝŶĞƐƐĂŶĚĨĂƌŵĞƌƐĞŐŵĞŶƚƐ͘tŚŝůĞƚŚĞƐŚĂƌĞŽĨ Ϯϳϵ͕ϵϮϯ ŐƌŽƵƉůŽĂŶĂĐĐŽƵŶƚƐĂůƐŽŝŶĐƌĞĂƐĞĚďLJ8%ŝŶϮϬϭϵ͕ƚŚĞLJ 2017 116,746 155,510 ƐƟůůĂĐĐŽƵŶƚĨŽƌ38%ŽĨŽƵƌďŽƌƌŽǁĞƌƐ͘ ϮϳϮ͕Ϯϱϲ /ŶĚŝǀŝĚƵĂů>ŽĂŶ 'ƌŽƵƉ>ŽĂŶ /RDQ2XWVWDQGLQJ(in KHR million) 2019 232,121 3,738,735 ŵƌĞƚ ĂĐŚŝĞǀĞĚ ůŽĂŶ ƉŽƌƞŽůŝŽ ŐƌŽǁƚŚ ŽĨ 26%͕ ŵĂŝŶůLJ ϯ͕ϵϳϬ͕ϴϱϲ ĚƌŝǀĞŶďLJŝŶĚŝǀŝĚƵĂůůĞŶĚŝŶŐƚŽůŽǁŵŝĚĚůĞƐĂůĂƌLJǁŽƌŬĞƌƐ͕ 2018 203,638 2,968,173 ĂƐǁĞůůĂƐŵŝĐƌŽĂŶĚƐŵĂůůĨĂƌŵĞƌƐĂŶĚďƵƐŝŶĞƐƐĞƐ͘ƚƚŚĞ ϯ͕ϭϳϭ͕ϴϭϭ ƐĂŵĞ ƟŵĞ͕ ƉŽƌƞŽůŝŽ ƋƵĂůŝƚLJ ŵĂŝŶƚĂŝŶĞĚ ĞdžĐĞůůĞŶƚůLJ Ăƚ 2017 196,258 2,591,873 0.15%ĨŽƌPAR30ĂƐŽĨĞĐĞŵďĞƌϮϬϭϵ͘ Ϯ͕ϳϴϴ͕ϭϯϭ /ŶĚŝǀŝĚƵĂů>ŽĂŶ 'ƌŽƵƉ>ŽĂŶ %RUURZHUVE\6HJPHQW /RDQ3RUWIROLRE\6HJPHQW 4% 7% 15% 21% 16% 5% 38% 8% 15% 30% 33% 8% DŝĐƌŽ&ĂƌŵĞƌƐ DŝĐƌŽƵƐŝŶĞƐƐ ^ĂůĂƌLJtŽƌŬĞƌƐ ^ŵĂůůΘDĞĚŝƵŵ&ĂƌŵĞƌƐ ^ŵĂůůΘDĞĚŝƵŵƵƐŝŶĞƐƐ KƚŚĞƌƐ &ĂƌŵĞƌƐĂĐĐŽƵŶƚĨŽƌŵŽƌĞƚŚĂŶ 68% ŽĨŵƌĞƚďŽƌƌŽǁĞƌƐ͘ŵƌĞƚƉŽƌƞŽůŝŽŝƐǁĞůůĚŝǀĞƌƐŝĮĞĚŝŶƚĞƌŵƐŽĨƐĞŐŵĞŶƚƐǁŝƚŚ 54%ŝŶĨĂƌŵŝŶŐ͕22% in businesses and 16%ŝŶƐĂůĂƌŝĞĚǁŽƌŬĞƌƐ͘ Our Performance Annual Report 2019 23 1RQ&UHGLW6HUYLFHV Deposit Performance 58% dŽƚĂů ĚĞƉŽƐŝƚ ďĂůĂŶĐĞ ĂƐ ŽĨ ĞĐĞŵďĞƌ ϮϬϭϵ ŝŶĐƌĞĂƐĞĚ ďLJ <,Z 54% 336,911ŵŝůůŝŽŶǁŚŝůƐƚĚĞƉŽƐŝƚĂĐĐŽƵŶƚƐŝŶĐƌĞĂƐĞĚďLJ<,Z40,440 ŵŝůůŝŽŶ͘ 51% 2,207,279 1,847,728 1,413,618 553,841 513,401 401,146 2017 2018 2019 ĞƉŽƐŝƚĂůĂŶĐĞ;<,ZDŝůůŝŽŶͿ ĞƉŽƐŝƚĐĐŽƵŶƚ ĞƉŽƐŝƚĂůĂŶĐĞŽŵƉĂƌĞĚƚŽ>ŽĂŶWŽƌƞŽůŝŽ 1RQ/RDQ)HH,QFRPH3HUIRUPDQFH ŵƌĞƚĐŽŶƟŶƵĞƐƚŽďƵŝůĚƚƌƵƐƚĂŶĚĐŽŶĮĚĞŶĐĞĂŵŽŶŐƐƚ ĐůŝĞŶƚƐĂŶĚƚŚĞŐĞŶĞƌĂůƉƵďůŝĐ͘dŚŝƐŝƐĂƚĞƐƚĂŵĞŶƚƚŽŵƌĞƚ͛Ɛ ŚŽŶĞƐƚLJ͕ ŝŶƚĞŐƌŝƚLJ ĂŶĚ ƚƌĂŶƐƉĂƌĞŶĐLJ ŝŶ Ăůů ŝƚƐ ďƵƐŝŶĞƐƐ ƌĞůĂƟŽŶƐŚŝƉƐǁŚŝĐŚŝƐĂůǁĂLJƐĐŽƵƌƚĞŽƵƐ͕ƉƌŽĨĞƐƐŝŽŶĂůĂŶĚ ĨƌŝĞŶĚůLJ͘ŵƌĞƚƐĞƌǀĞĐůŝĞŶƚƐǁŝƚŚŐƌĞĂƚĐƵƐƚŽŵĞƌĐĂƌĞĂŶĚ ƉƌŽǀŝĚĞǀĂůƵĂďůĞĮŶĂŶĐŝĂůƐŽůƵƟŽŶƐ͘EŽŶͲĐƌĞĚŝƚƉƌŽĚƵĐƚƐ ĂŶĚ ƚƌĂŶƐĂĐƟŽŶƐ ƐƵĐŚ ĂƐ ŝŶƚĞƌͲďƌĂŶĐŚ ƌĞŵŝƩĂŶĐĞƐ͕ ďŝůů ƉĂLJŵĞŶƚƐ͕ĂŐĞŶƚƌĞďĂůĂŶĐŝŶŐƐĞƌǀŝĐĞƐ͕ĚŽŽƌƐƚĞƉĚĞƉŽƐŝƚƐ͕ dD͕ĞͲǁĂůůĞƚ͕ŵŽďŝůĞďĂŶŬŝŶŐ͕ďĂŶĐĂƐƐƵƌĂŶĐĞƉĞƌĨŽƌŵĞĚ ϴ͕ϲϵϱ ǁĞůůǁŝƚŚŝŶĐƌĞĂƐĞĚǀŽůƵŵĞ͘ ϲ͕Ϯϴϵ ŵƌĞƚĂůƐŽůĂƵŶĐŚĞĚĂŶĞǁŝŶŶŽǀĂƟǀĞƉƌŽĚƵĐƚ;&ĂƐƚ>ŽĂŶͿ ĐĂƚĞƌŝŶŐ ƚŽ ƐƵďƐĐƌŝďĞƌƐ ŽĨ ĚŽŽƌƐƚĞƉ ĚĞƉŽƐŝƚ ĐƵƐƚŽŵĞƌƐ Ϯ͕ϱϯϵ ƚŚƌŽƵŐŚDŽďŝůĞ^ĂǀŝŶŐKĸĐĞƌƐŝŶKĐƚŽďĞƌϮϬϭϵ͘ ůŝŐŝďůĞ ĐůŝĞŶƚƐ͕ ŵĂŝŶůLJ ǁŽŵĞŶ ŽƉĞƌĂƟŶŐ ŵŝĐƌŽ ďƵƐŝŶĞƐƐĞƐ͕ ĐĂŶ 2017 2018 2019 ŚĞŶĐĞŐĞƚĂĐĐĞƐƐŝŶϮϰŚƚŽĞŵĞƌŐĞŶĐLJĨƵŶĚƐ͘ dŽƚĂůEŽŶͲ>ŽĂŶ&ĞĞ/ŶĐŽŵĞ;<,ZDŝůůŝŽŶͿ 24 Our Performance Annual Report 2019 $Q2PQL&KDQQHO$SSURDFK 8VLQJ%OHQGHG'LJLWDODQG3K\VLFDO7RXFK3RLQWV tŝƚŚƚŚĞŝŶƚĞŶƟŽŶŽĨŽīĞƌŝŶŐĂƌĂŶŐĞŽĨĐŽŵƉůĞŵĞŶƚĂƌLJ %UHDNGRZQRI7UDQVDFWLRQV ĚŝƐƚƌŝďƵƟŽŶ ĐŚĂŶŶĞůƐ ĞŶĂďůŝŶŐ ĐůŝĞŶƚƐ ĨƌŽŵ Ăůů ŽǀĞƌ ƚŚĞ %UDQFKYHUVXV$OWHUQDWLYH&KDQQHOV ĐŽƵŶƚƌLJ ƚŽ ƚƌĂŶƐĂĐƚ ĂŶĚ ŐĞƚ ŝŶĨŽƌŵĂƟŽŶ ǁŚĞƌĞǀĞƌ ĂŶĚ ǁŚĞŶĞǀĞƌ ƚŚĞLJ ǁŝƐŚ͕ ŵƌĞƚ ŚĂƐ ĚĞǀĞůŽƉĞĚ Ă ǀĂƌŝĞƚLJ ŽĨ ĂĐĐĞƐƐ ƉŽŝŶƚƐ͕ ůĞǀĞƌĂŐŝŶŐ ŽŶ ƚĞĐŚŶŽůŽŐLJ ĂŶĚ ƐƚƌĂƚĞŐŝĐ ƉĂƌƚŶĞƌƐŚŝƉƐ͘ ůŝĞŶƚƐ ĐĂŶ ŚĞŶĐĞ ĐĂƌƌLJ ŽƵƚ ŽƉĞƌĂƟŽŶƐ ƚŚƌŽƵŐŚ 183 DŽďŝůĞ ^ĂǀŝŶŐ KĸĐĞƌƐ ŽīĞƌŝŶŐ ƌĞĂů ƟŵĞ 35% ĚĞƉŽƐŝƚ ĂŶĚ ĨĂƐƚ ůŽĂŶƐ Ăƚ ŵŝĐƌŽ ďƵƐŝŶĞƐƐĞƐ͛ ĚŽŽƌƐƚĞƉ͕ 1,500 dDƐ ĂŶĚ 4,000 WK^ ƚŚĂŶŬƐ ƚŽ ƚŚĞ ĂŵďŽĚŝĂŶ ^ŚĂƌĞĚ^ǁŝƚĐŚ;^^Ϳ͕18,000ƉĂƌƚŶĞƌ͛ƐĂŐĞŶƚƐ;tŝŶŐ͕dƌƵĞ DŽŶĞLJͿ͕ĞͲtĂůůĞƚƐ;tŝŶŐ͕WŝWĂLJͿĂŶĚŵƌĞƚDŽďŝůĞĂƉƉ͘ ŵƌĞƚDŽďŝůĞǁĂƐŽĸĐŝĂůůLJůĂƵŶĐŚĞĚŝŶEŽǀĞŵďĞƌϮϬϭϵ͕ 65% ĂĐƋƵŝƌŝŶŐ Ă ƐƵďƐĐƌŝďĞƌ ďĂƐĞ ŽĨ ŵŽƌĞ ƚŚĂŶ 16,000 ĂƐ ŽĨ ĞĐĞŵďĞƌϮϬϭϵ͘tĞŝŶƚĞŶĚƚŽƌĞĂĐŚ25%ŽĨŽƵƌĐƵƐƚŽŵĞƌ ďĂƐĞďLJϮϬϮϭ͘ ůƚĞƌŶĂƟǀĞŚĂŶŶĞůƐ ƌĂŶĐŚ Our Performance Annual Report 2019 25 Risk Management 5LVN0DQDJHPHQW3HUIRUPDQFH ZŝƐŬ ŵĂŶĂŐĞŵĞŶƚ ƉůĂLJƐ Ă ƐŝŐŶŝĮĐĂŶƚ ƌŽůĞ ŝŶ ŝŵƉƌŽǀŝŶŐ ƚŚĞ ƋƵĂůŝƚLJ ŽĨ ŵƌĞƚ͛Ɛ ĐŽŶƚƌŽů ƐĞƚͲƵƉ ĂŶĚ ŝŶ ƐƵƉƉŽƌƟŶŐ ƚŚĞ ĂƩĂŝŶŵĞŶƚ ŽĨ ŝƚƐ ĐŽƌƉŽƌĂƚĞ ŐŽĂůƐ ďLJ ĨŽĐƵƐŝŶŐ ŽŶ ƚǁŽ ĂƐƉĞĐƚƐ Ͷ ƉƌŽƚĞĐƟŶŐ ĐĂƉŝƚĂů ĂŶĚ ŽƉƟŵŝnjŝŶŐ ƚŚĞ ƌĞůĂƟŽŶƐŚŝƉďĞƚǁĞĞŶƌŝƐŬƐĂŶĚƌĞƚƵƌŶƐ͘ dŽ ĞŶƐƵƌĞ ƚŚĂƚ ĞdžƉĂŶƐŝŽŶ ŽĨ ďƵƐŝŶĞƐƐ ŽƉĞƌĂƟŽŶƐ ĂŶĚ ĂĐƟǀŝƟĞƐ ŝŶ ƚŚŝƐ ĚLJŶĂŵŝĐ ĞǀŽůǀŝŶŐ ĞŶǀŝƌŽŶŵĞŶƚ ƌĞŵĂŝŶƐ ǁŝƚŚŝŶ ƌŝƐŬ ƚŽůĞƌĂŶĐĞ ůĞǀĞůƐ͕ ĂŶĚ ĨƵůůLJ ĐŽŵƉůŝĂŶƚ ǁŝƚŚ ĂƉƉůŝĐĂďůĞ ůĂǁƐ ĂŶĚ ƌĞŐƵůĂƟŽŶƐ͕ ďŽƚŚ ŝŶƚĞƌŶĂů ĂŶĚ ĞdžƚĞƌŶĂů͕ ŵƌĞƚ ŚĂƐ ŝŵƉůĞŵĞŶƚĞĚ ĂŶ ŝŶƚĞŐƌĂƚĞĚ ƌŝƐŬ ŵĂŶĂŐĞŵĞŶƚ ƐLJƐƚĞŵ ƚŚƌŽƵŐŚŽƵƚ ƚŚĞ ĞŶƟƌĞ ŽƌŐĂŶŝnjĂƟŽŶ ĐĂůůĞĚƚŚĞ ŶƚĞƌƉƌŝƐĞͲtŝĚĞZŝƐŬDĂŶĂŐĞŵĞŶƚ^LJƐƚĞŵ͘ ZŝƐŬ ŵĂŶĂŐĞŵĞŶƚ ǁŝƚŚŝŶ ŵƌĞƚ ŝƐ ƐĞƉĂƌĂƚĞ ĂŶĚ ŝŶĚĞƉĞŶĚĞŶƚ ĨƌŽŵ ďƵƐŝŶĞƐƐ ĂŶĚ ĂƵĚŝƚ ĨƵŶĐƟŽŶƐ͘ dŚĞƐĞ ĨƵŶĐƟŽŶƐĂƌĞĂĐƟǀĞŝŶƌŝƐŬŵĂŶĂŐĞŵĞŶƚĂƚĚŝīĞƌĞŶƚůĞǀĞůƐ ŽĨƚŚĞŽƌŐĂŶŝnjĂƟŽŶ͘ 2YHUYLHZRI5LVN0DQDJHPHQW6\VWHP ŵƌĞƚ ŚĂƐ ŝŵƉůĞŵĞŶƚĞĚ ŝƚƐ ƌŝƐŬ ŵĂŶĂŐĞŵĞŶƚ ƐLJƐƚĞŵ ďĂƐĞĚŽŶƚŚĞĐŽŶĐĞƉƚŽĨĨŽƵƌŵĂŝŶůŝŶĞƐŽĨĐŽŶƚƌŽů͕ŶĂŵĞůLJ͗ ϭ͘KƉĞƌĂƟŽŶĂůŽŶƚƌŽů͗dŚĞƐĞĐŽŶƚƌŽůƐĂƌĞĐĂƌƌŝĞĚŽƵƚĂŶĚ ŝŵƉůĞŵĞŶƚĞĚĚŝƌĞĐƚůLJďLJŽƉĞƌĂƚŽƌƐĂƚĂůůůĞǀĞůƐŽĨƚŚĞ ŽƌŐĂŶŝnjĂƟŽŶƚŽĞŶƐƵƌĞƚŚĂƚŽƵƚĐŽŵĞƐĂƌĞŝŶĂĐĐŽƌĚĂŶĐĞ ǁŝƚŚƚŚĞƉŽůŝĐŝĞƐĂŶĚƉƌŽĐĞĚƵƌĞƐĚĞǀĞůŽƉĞĚ͘ Ϯ͘ DĂŶĂŐĞŵĞŶƚ ŽŶƚƌŽů͗ dŚĞƐĞ ĐŽŶƚƌŽůƐ ĂƌĞ ĐĂƌƌŝĞĚ ŽƵƚ ĂŶĚŝŵƉůĞŵĞŶƚĞĚďLJůŝŶĞŵĂŶĂŐĞŵĞŶƚƐƚĂī͕ǁŚŽĂƌĞ ŶŽƚĚŝƌĞĐƚůLJŝŶǀŽůǀĞĚŝŶĚĂŝůLJŽƉĞƌĂƟŽŶƐ͕ƚŽĞŶƐƵƌĞƚŚĂƚ ŽƉĞƌĂƚŽƌƐĐĂƌƌLJŽƵƚƚŚĞŝƌƚĂƐŬƐĂŶĚĚƵƟĞƐŝŶĂĐĐŽƌĚĂŶĐĞ ǁŝƚŚƚŚĞƉŽůŝĐŝĞƐĂŶĚƉƌŽĐĞĚƵƌĞƐŝŶƉůĂĐĞ͘ ϯ͘ĞĚŝĐĂƚĞĚŽŶƚƌŽů͗dŚĞƐĞĐŽŶƚƌŽůƐĂƌĞĐĂƌƌŝĞĚŽƵƚĂŶĚ ŝŵƉůĞŵĞŶƚĞĚďLJƚŚĞƌŝƐŬŵĂŶĂŐĞŵĞŶƚĂŶĚĐŽŵƉůŝĂŶĐĞ ĚŝǀŝƐŝŽŶ ƚŽ ŵŽŶŝƚŽƌ ĂŶĚ ĞŶƐƵƌĞ ƚŚĂƚ ŽƉĞƌĂƚŽƌƐ ĂĚĞƋƵĂƚĞůLJĂŶĚƉƌŽƉĞƌůLJĂƉƉůLJĂŶĚŝŵƉůĞŵĞŶƚƚŚĞƌŝƐŬ ŵĂŶĂŐĞŵĞŶƚ ƉŽůŝĐŝĞƐ ĂŶĚ ƉƌŽĐĞĚƵƌĞƐ ŝŶ ƉůĂĐĞ͕ ĂŶĚ ĞŶƐƵƌĞƚŚĂƚĂƐƚƌŽŶŐĐƵůƚƵƌĞŽĨŝŶƚĞƌŶĂůĐŽŶƚƌŽůĂŶĚĂ ůŽǁƚŽůĞƌĂŶĐĞĨŽƌƌŝƐŬŝƐďƵŝůƚĂŶĚĐŽŵŵƵŶŝĐĂƚĞĚƚŽĂůů ƐƚĂī͘ ϰ͘ /ŶƚĞƌŶĂů ƵĚŝƚ͗ dŚĞƐĞ ĐŽŶƚƌŽůƐ ĂƌĞ ĐĂƌƌŝĞĚ ŽƵƚ ĂŶĚ ŝŵƉůĞŵĞŶƚĞĚ ďLJ ƚŚĞ ŝŶƚĞƌŶĂů ĂƵĚŝƚ ĚĞƉĂƌƚŵĞŶƚ ƚŽ ĞǀĂůƵĂƚĞƉĞƌŵĂŶĞŶƚĐŽŶƚƌŽůĂŶĚƌĞƉŽƌƚƚŽƚŚĞďŽĂƌĚŽĨ ĚŝƌĞĐƚŽƌƐŝŶĚĞƉĞŶĚĞŶƚůLJ͘ 26 Our Performance Annual Report 2019 ͻ Dƌ͘^ƚĞǀĞŶƵĐŚĂƚĞůůĞ;ŚĂŝƌƉĞƌƐŽŶͿ 5LVN0DQDJHPHQW6WUXFWXUH ͻ DƌƐ͘ ƐƚĞůůĞĂƌŝĞͲZŽƵƐƐĞĂƵdž;DĞŵďĞƌͿ ͻ Dƌ͘^ĂŵŽƌŬ^ƌĞŶŐ;DĞŵďĞƌͿ ŵƌĞƚĞƐƚĂďůŝƐŚĞĚĨŽƵƌƐƵďͲƌŝƐŬŵĂŶĂŐĞŵĞŶƚĐŽŵŵŝƩĞĞƐ ͻ Dƌ͘WĂƉŚŽŶDĂŶŐŬŚĂůĂƚŚĂŶĂŬƵŶ;DĞŵďĞƌͿ ƚŚĂƚ ĐŽŵĞ ƵŶĚĞƌ ƚŚĞ ƐƵƉĞƌǀŝƐŝŽŶ ŽĨ ƚŚĞ ZŝƐŬ KǀĞƌƐŝŐŚƚ ŽŵŵŝƩĞĞ;ZKͿ͕ŶĂŵĞůLJƚŚĞ^ƚƌĂƚĞŐŝĐZŝƐŬŽŵŵŝƩĞĞ͕ ͻ ŚŝĞĨ džĞĐƵƟǀĞKĸĐĞƌ;KďƐĞƌǀĞƌͿ ƚŚĞ ƐƐĞƚ ĂŶĚ >ŝĂďŝůŝƚLJ ŽŵŵŝƩĞĞ͕ ƚŚĞ ƌĞĚŝƚ ZŝƐŬ ͻ ŚŝĞĨZŝƐŬKĸĐĞƌ;KďƐĞƌǀĞƌͿ ŽŵŵŝƩĞĞĂŶĚƚŚĞKƉĞƌĂƟŽŶĂůZŝƐŬŽŵŵŝƩĞĞ͘ &UHGLW5LVN0DQDJHPHQW $VVHWDQG/LDELOLW\0DQDJHPHQW ƌĞĚŝƚ ƌŝƐŬ ƌĞĨĞƌƐ ƚŽ ƚŚĞ ƌŝƐŬ ŽĨ ůŽƐƐĞƐ ĚƵĞ ƚŽ ďŽƌƌŽǁĞƌƐ͛ ĨĂŝůƵƌĞ ƚŽ ŵĞĞƚ ƚŚĞŝƌ ƌĞƉĂLJŵĞŶƚ ŽďůŝŐĂƟŽŶƐ͘ ƌĞĚŝƚ ƌŝƐŬ ŵĂŶĂŐĞŵĞŶƚĂŝŵƐƚŽŬĞĞƉĐƌĞĚŝƚůŽƐƐĞƐĂƚĂŵĂŶĂŐĞĂďůĞ dŚĞ ƐƐĞƚ ĂŶĚ >ŝĂďŝůŝƚLJ DĂŶĂŐĞŵĞŶƚ 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ŽƌƌŝƐŬLJŵĂƌŬĞƚƐ͕ĞĐŽŶŽŵŝĐƐĞĐƚŽƌƐĂŶĚĐƌĞĚŝƚƉƌŽĚƵĐƚƐ͘Ɛ dŚĞ ĐŽŵŵŝƩĞĞ ŚĂƐ ďĞĞŶ ĞƐƚĂďůŝƐŚĞĚ ƵŶĚĞƌ ƚŚĞ ƐƉĞĐŝĮĐ Ă ƌĞƐƵůƚ͕ ƚŚĞ ŽǀĞƌĂůů ůŽĂŶ ƉŽƌƞŽůŝŽ ƋƵĂůŝƚLJ ;WZхϯϬ ĚĂLJƐͿ ĂƵƚŚŽƌŝƚLJŽĨƚŚĞďŽĂƌĚĂŶĚǁŝƚŚƚŚĞĂŐƌĞĞŵĞŶƚŽĨƚŚĞZŝƐŬ ǁĂƐǀĞƌLJŐŽŽĚĂƚŽŶůLJϬ͘ϭϱйƚŚĂƚǁĂƐƚŚĞŽƵƚƐƚĂŶĚŝŶŐƌĂƚĞ KǀĞƌƐŝŐŚƚ ŽŵŵŝƩĞĞ ǁŚŝůĞ ŝƚƐ ĂƵƚŚŽƌŝƚLJ ĂŶĚ ĚƵƟĞƐ ĂƌĞ ĂŵŽŶŐƚŚĞD&/ŝŶĚƵƐƚƌLJĂŶĚƉĞĞƌƐĂƚƚŚĞĞŶĚŽĨϮϬϭϵ͘ ĐůĞĂƌůLJĚĞĮŶĞĚďLJƚŚĞďŽĂƌĚ͘ dŚĞ>KŚŽůĚƐŵĞĞƟŶŐƐĂƚůĞĂƐƚŽŶĐĞĞǀĞƌLJŵŽŶƚŚĂŶĚ 2SHUDWLRQDO5LVN0DQDJHPHQW ƌĞƉŽƌƚƐƚŽZKƋƵĂƌƚĞƌůLJ͘ ŵƌĞƚ ŚĂƐ ďĞĞŶ ĨŽůůŽǁŝŶŐ ƚŚĞ KƉĞƌĂƟŽŶĂů ZŝƐŬ DĂŶĂŐĞŵĞŶƚ &ƌĂŵĞǁŽƌŬ ŝŶ ŝĚĞŶƟĨLJŝŶŐ ƌŝƐŬƐ͖ ŵĞĂƐƵƌŝŶŐ ƌŝƐŬ ĞdžƉŽƐƵƌĞ͖ ŵĂŶĂŐŝŶŐ ĂŶĚ ŵŝƟŐĂƟŶŐ ƚŚĞ ƌŝƐŬƐ ƚŚƌŽƵŐŚ 5LVN2YHUVLJKW&RPPLWWHH 52& ŽƉĞƌĂƟŶŐƉƌŽĐĞĚƵƌĞƐĂŶĚĐŽŶƚƌŽůƐ͖ĂŶĚŵŽŶŝƚŽƌŝŶŐĐŽŶƚƌŽů ĞīĞĐƟǀĞŶĞƐƐĂŶĚŝƚƐƌĞƐŝĚƵĂůƌŝƐŬƐ͘ dŚĞZK͛ƐŵŝƐƐŝŽŶŝƐƚŽŽǀĞƌƐĞĞĂůůƚLJƉĞƐŽĨƌŝƐŬƐƚŚĂƚĐĂŶ /ŶϮϬϭϵ͕ŵƌĞƚŬĞƉƚŐŽŽĚƉĞƌĨŽƌŵĂŶĐĞŝŶŝĚĞŶƟĨLJŝŶŐƚŚĞ ŽĐĐƵƌŝŶƚĞƌŶĂůůLJĂŶĚĞdžƚĞƌŶĂůůLJĂƐƉĂƌƚŽĨŵƌĞƚ͛ƐďƵƐŝŶĞƐƐ ƌŝƐŬ ƚŚƌŽƵŐŚ ŝƚƐ ZŝƐŬ ĂŶĚ ŽŶƚƌŽů ^ĞůĨͲƐƐĞƐƐŵĞŶƚ ;Z^Ϳ͕ ŽƉĞƌĂƟŽŶƐĂŶĚĂĐƟǀŝƟĞƐŝŶŽƌĚĞƌƚŽĞŶƐƵƌĞƚŚĂƚƉƌĂĐƟĐĞƐ 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ŵĂĐƌŽĞĐŽŶŽŵŝĐ ŝŵƉĂĐƚ͕ ƉƌŽĚƵĐƚ ŝŶŶŽǀĂƟŽŶ͕ ŵĂƌŬĞƚ͕ ƚĞĐŚŶŽůŽŐLJ͕ĂŶĚŵĂŶĂŐĞŵĞŶƚƌŝƐŬ͘ dŽ ĞŶƐƵƌĞ ƉƌŽƉĞƌ ŵĂŶĂŐĞŵĞŶƚ͕ ƚŚĞ ^ƚƌĂƚĞŐŝĐ ZŝƐŬ DĂŶĂŐĞŵĞŶƚ &ƌĂŵĞǁŽƌŬ ŝƐ ĚĞǀĞůŽƉĞĚ ĂŶĚ ĂƉƉƌŽǀĞĚ ďLJƚŚĞZŝƐŬKǀĞƌƐŝŐŚƚŽŵŵŝƩĞĞ͕ĂŶĚƚŚĞ^ƚƌĂƚĞŐŝĐZŝƐŬ ŽŵŵŝƩĞĞŵĞĞƚƐĨŽƌĚŝƐĐƵƐƐŝŽŶƚǁŝĐĞƉĞƌLJĞĂƌ͘ ,QIRUPDWLRQ6HFXULW\ /ŶĨŽƌŵĂƟŽŶ ^ĞĐƵƌŝƚLJ ŚĂƐ ŝŶǀĞƐƚĞĚ ŝŶ ƚŚĞ ůĂƚĞƐƚ ƐĞĐƵƌŝƚLJ ƉƌĞǀĞŶƟŽŶƚĞĐŚŶŽůŽŐLJƚŽĚĞƚĞĐƚĂŶĚƉƌŽƚĞĐƚĂŐĂŝŶƐƚĐLJďĞƌ ƚŚƌĞĂƚƐ ĂƌŽƵŶĚ ƚŚĞ ǁŽƌůĚ ƚŚĂƚ ŚĂǀĞ ĞdžƉĞƌŝĞŶĐĞĚ ƌĂƉŝĚ ŐƌŽǁƚŚŝŶƚŚĞĚŝŐŝƚĂůĚĞĐĂĚĞ͘DĞĂƐƵƌĞƐŚĂǀĞďĞĞŶƚĂŬĞŶŝŶ ŽƌĚĞƌƚŽĂĚĂƉƚƚŚĞĐŽŵƉĂŶLJ͛ƐƐƚƌĂƚĞŐŝĐŐƌŽǁƚŚŝŶůŝŶĞƚŚĞ ďƵƐŝŶĞƐƐĂŶĚĐƵƐƚŽŵĞƌĚĞŵĂŶĚ͘dŚĞ/ŶĨŽƌŵĂƟŽŶ^ĞĐƵƌŝƚLJ ƉůĂLJĞĚĂŶŝŵƉŽƌƚĂŶƚƌŽůĞƚŽĞŶƐƵƌĞĚŝŐŝƚĂůƉƌŽĚƵĐƚƐĂŶĚ ĚŝŐŝƚĂů ƐĞƌǀŝĐĞƐ ŵĞĞƚ ƚŚĞ ŚŝŐŚĞƐƚ ŝŶƚĞƌŶĂƟŽŶĂů ƐƚĂŶĚĂƌĚ ƌĞƋƵŝƌĞŵĞŶƚƐ ĂŶĚ ƌĞŐƵůĂƚŽƌLJ ƌĞƋƵŝƌĞŵĞŶƚƐ͘ tĞ ŚĂǀĞ ĚĞǀĞůŽƉĞĚ Ă ĐŽŵƉƌĞŚĞŶƐŝǀĞ ƐĞĐƵƌŝƚLJ ŵĂŶĂŐĞŵĞŶƚ ĨƌĂŵĞǁŽƌŬĂŶĚĂƌĞĂůǁĂLJƐŝŵƉƌŽǀŝŶŐŽƵƌĐLJďĞƌƐĞĐƵƌŝƚLJ ŬŶŽǁůĞĚŐĞĨŽƌŽƵƌƐĞĐƵƌŝƚLJƉĞƌƐŽŶŶĞůƚŽďĞĂǁĂƌĞŽĨĂŶĚ ďĞ ƌĞĂĚLJ ƚŽ ĮŐŚƚ ĂŐĂŝŶƐƚ ƚŚĞ ŵŽƐƚ ƐŽƉŚŝƐƟĐĂƚĞĚ ĐLJďĞƌ ƚŚƌĞĂƚƐĨƌŽŵĂƌŽƵŶĚƚŚĞŐůŽďĞ͘ $QWL0RQH\/DXQGHULQJDQG&RPEDWLQJ Terrorist Financing ŵƌĞƚĐŽŵƉůŝĞƐǁŝƚŚĂůůƚŚĞƌĞƋƵŝƌĞŵĞŶƚƐŽĨƚŚĞϮϬϬϳ>Ăǁ ŽŶŶƟͲDŽŶĞLJ>ĂƵŶĚĞƌŝŶŐĂŶĚŽŵďĂƟŶŐƚŚĞ&ŝŶĂŶĐŝŶŐ ŽĨdĞƌƌŽƌŝƐŵ;D>ͬ&dͿ͕ƚŚĞϮϬϬϴWƌĂŬĂƐŽŶŶƟͲDŽŶĞLJ >ĂƵŶĚĞƌŝŶŐ ĂŶĚ ŽŵďĂƟŶŐ ƚŚĞ &ŝŶĂŶĐŝŶŐ ŽĨ dĞƌƌŽƌŝƐŵ ƌĞŐƵůĂƚŽƌLJŐƵŝĚĞůŝŶĞƐĂŶĚŝƚƐƉƌŽĐĞƐƐĞƐĂŶĚƉƌŽĐĞĚƵƌĞƐĂƐ ŝƐƐƵĞĚďLJƚŚĞEĂƟŽŶĂůĂŶŬŽĨĂŵďŽĚŝĂ;EͿ͕ĂŶĚǁŝƚŚ ŝŶƚĞƌŶĂƟŽŶĂůƐƚĂŶĚĂƌĚƐĂŶĚďĞƐƚƉƌĂĐƟĐĞƐ͘ dŚĞŝŶĐƌĞĂƐĞĚƐŽƉŚŝƐƟĐĂƟŽŶĂŶĚďƌŽĂĚĞƌƌĞĂĐŚŽĨŵŽŶĞLJ ůĂƵŶĚĞƌŝŶŐ ĂŶĚ ƚĞƌƌŽƌŝƐŵ ĮŶĂŶĐŝŶŐ ;D>ͬd&Ϳ ŶĞƚǁŽƌŬƐ ŚĂǀĞ ĞůĞǀĂƚĞĚ D>ͬd& ƚŚƌĞĂƚƐ ƚŽ ƚŚĞ ŶĞdžƚ ůĞǀĞů͘ ŵƌĞƚ ŝƐ ĐŽŵŵŝƩĞĚ ƚŽ ĚĞǀĞůŽƉŝŶŐ ĂŶĚ ŵĂŝŶƚĂŝŶŝŶŐ ƐƚƌŝŶŐĞŶƚ ĂŶĚƐŽƵŶĚƉƌĂĐƟĐĞƐƚŽĞŶƐƵƌĞĞīĞĐƟǀĞĂƐƐĞƐƐŵĞŶƚĂŶĚ ŵĂŶĂŐĞŵĞŶƚŽĨD>ͬd&ƌŝƐŬ͘dŚĞƐĞĞīŽƌƚƐǁŝůůŚĞůƉƌĞĚƵĐĞ ƚŚĞĐŽƐƚŽĨD>ͬd&ŝŶǀĞƐƟŐĂƟŽŶƐĂŶĚƉƌŽƚĞĐƚĂŶĚĞŶŚĂŶĐĞ ŵƌĞƚ͛ƐŝŶƚĞŐƌŝƚLJĂŶĚƌĞƉƵƚĂƟŽŶ͘ ŵƌĞƚ ĐŽŶƐƚĂŶƚůLJ ƐƚƌĞŶŐƚŚĞŶƐ ŝƚƐ ĞŶƚĞƌƉƌŝƐĞͲǁŝĚĞ D>ͬ &dƉƌŽŐƌĂŵƐďLJĂĚŽƉƟŶŐĂƌŝƐŬͲďĂƐĞĚĂƉƉƌŽĂĐŚƚŽĞŶƐƵƌĞ ƚŚĂƚ ŬĞLJ ŵĞĂƐƵƌĞƐ ĂƌĞ ŝŶ ƉůĂĐĞ ƚŽ ƉƌĞǀĞŶƚ ĂŶĚ ŵŝƟŐĂƚĞ D>ͬd& ĐŽŵŵĞŶƐƵƌĂƚĞ ǁŝƚŚ ĐŽŵƉůŝĂŶĐĞ ƌŝƐŬƐ ƚŚĂƚ ŚĂǀĞ ďĞĞŶŝĚĞŶƟĮĞĚĂŶĚĂƐƐĞƐƐĞĚ͘ $PUHWoVFOLHQW.RK.RQJSURYLQFH Ɛ ƉĂƌƚ ŽĨ ŝƚƐ ƐƵƌǀĞŝůůĂŶĐĞ ŵĞĐŚĂŶŝƐŵ ƚŽ ĐŽŵďĂƚ D>ͬ d&͕ ƚŚĞ ŽŵƉůŝĂŶĐĞ hŶŝƚ ƌĞŐƵůĂƌůLJ ĐŽŵŵƵŶŝĐĂƚĞƐ ƚŚĞ 28 Our Performance Annual Report 2019 D> ďůĂĐŬůŝƐƚ ŝƐƐƵĞĚ ďLJ E͕ ƚŚĞ hE ^ĞĐƵƌŝƚLJ ŽƵŶĐŝů͕ ĂĐŚŝĞǀĞĚϭϬϯйŽĨƚŚĞĂŶŶƵĂůŝŶƚĞƌŶĂůĂƵĚŝƚƉůĂŶĂƐƉĞƌƚŚĞ ĞŵďĂƐƐŝĞƐĂŶĚŽƚŚĞƌďŽĚŝĞƐƚŽĂůůďƌĂŶĐŚĞƐĂŶĚĚŝǀŝƐŝŽŶƐ ĂƐƐĞƐƐŵĞŶƚŽĨƐĞůĞĐƚĞĚŵĂĐƌŽͲƉƌŽĐĞƐƐĂƚƚŚĞŚĞĂĚŽĸĐĞ ƚŽ ĞŶƐƵƌĞ ƚŚĂƚ ƉƌŽƉĞƌ ƐĐƌĞĞŶŝŶŐ ŝƐ ŝŶ ƉůĂĐĞ ĂŶĚ ĐĂƌƌŝĞĚ ĂŶĚĂůůƌĞŐŝŽŶĂůĂŶĚďƌĂŶĐŚĞƐǁŝƚŚĂƚůĞĂƐƚŽŶĞĂƵĚŝƚƉĞƌ ŽƵƚ͘͞ƵƐƚŽŵĞƌƵĞŝůŝŐĞŶĐĞ͟Žƌ͞<ŶŽǁzŽƵƌƵƐƚŽŵĞƌ͟ LJĞĂƌƉůƵƐĂƐƵƌƉƌŝƐĞĐŚĞĐŬǁŚĞƌĞŶĞĞĚĞĚ͕ŝŶƚĞƌǀŝĞǁƐǁŝƚŚ ŝŶĨŽƌŵĂƟŽŶŝƐƐƟůůǀŝƚĂůƚŽD>ͬ&d͘ŵƌĞƚƉƌŽǀŝĚĞƐD>ͬ ϲ͕ϯϬϳĐůŝĞŶƚƐĂŶĚ ƚŚĞǀĂůŝĚĂƟŽŶ ŽĨϳ͕ϴϭϰĂĐĐŽƵŶƚƐ͘ƐĂ &dƚƌĂŝŶŝŶŐƚŽĂůůŶĞǁƐƚĂīĂŶĚĂŶŶƵĂůƌĞĨƌĞƐŚĞƌĐŽƵƌƐĞƐ ƌĞƐƵůƚ͕ƚŚĞ/ƉƌŽǀŝĚĞĚĂŐůŽďĂůƌĂƟŶŐƉĞƌŵĂĐƌŽͲƉƌŽĐĞƐƐ ƚŽĂůůƐƚĂīĐŽŶĐĞƌŶĞĚ͘ ĂŶĚ ĞŶƟƚLJŽŶ ŝŶƚĞƌŶĂů ĐŽŶƚƌŽů ŝŶƚĞŐƌĂƟŽŶ ĂŶĚ ĞdžĞĐƵƟŽŶ ĂŶĚ ƚŚĞ ŝŶƚĞƌŶĂů ĂƵĚŝƚ ƚĞĂŵƐ ǁĞƌĞ ĂďůĞ ƚŽ ĚĞƚĞƌŵŝŶĞ dŝŵĞůLJĂŶĚƌĞŐƵůĂƌƌĞƉŽƌƟŶŐƚŽEŝŶĐůƵĚĞƐƚŚĞ^ƵƐƉŝĐŝŽƵƐ ƚŚĂƚ ƐƚĂī ŚĂĚ ƚŚŽƌŽƵŐŚůLJ ĐŽŵƉůŝĞĚ ǁŝƚŚ ĂƉƉƌŽǀĞĚ dƌĂŶƐĂĐƟŽŶZĞƉŽƌƚĂŶĚƚŚĞĂƐŚdƌĂŶƐĂĐƟŽŶZĞƉŽƌƚ͘dŚĞ ƉŽůŝĐŝĞƐ͕ ƉƌŽĐĞĚƵƌĞƐ͕ ůĂǁƐ ĂŶĚ ƌĞŐƵůĂƟŽŶƐ͕ ŝŶ ǁŚŝĐŚ ƚŚĞ ŽŵƉůŝĂŶĐĞhŶŝƚŽƉĞƌĂƚĞƐŝŶĚĞƉĞŶĚĞŶƚůLJŽĨŵĂŶĂŐĞŵĞŶƚ ŝŶƚĞƌŶĂůĐŽŶƚƌŽůƌĂƟŶŐƐŚŽǁĞĚŐŽŽĚŝŵƉƌŽǀĞŵĞŶƚĨŽƌƚŚĞ ĂŶĚƌĞƉŽƌƚƐĚŝƌĞĐƚůLJƚŽƚŚĞZK͘'ŽŽĚŐŽǀĞƌŶĂŶĐĞ͕ƐŽůŝĚ ŝŶĚŝĐĂƟŽŶŽĨĂƉƉƌŽƉƌŝĂƚĞĂŶĚĞīĞĐƟǀĞŝŶƚĞƌŶĂůĐŽŶƚƌŽůƐ͘ D>ͬ&dƉŽůŝĐLJĂŶĚƉƌŽŐƌĂŵ͕ĂŶĚŽŶŐŽŝŶŐƐƚĂīƚƌĂŝŶŝŶŐ /ŶĐŽŶĐůƵƐŝŽŶ͕ĞǀĞŶǁŝƚŚƐŽŵĞŝŵƉƌŽǀĞŵĞŶƚƉŽŝŶƚƐŶŽƚĞĚ͕ ŽŶD>ͬ&dŵĞĂŶƚŚĂƚŵƌĞƚŚĂƐŶĞǀĞƌďĞĞŶƐƵďũĞĐƚƚŽ ƚŚĞĂƐƐĞƐƐŵĞŶƚƌĞƐƵůƚƐƉƌŽǀŝĚĞƌĞĂƐŽŶĂďůĞĂƐƐƵƌĂŶĐĞƚŚĂƚ ƐƵƉĞƌǀŝƐŝŽŶŽƌĂĐƌŝŵŝŶĂůŽƌĐŝǀŝůĂĐƟŽŶĚƵĞƚŽD>ͬ&d ƌŝƐŬƐĂƌĞďĞŝŶŐŵĂŶĂŐĞĚĂŶĚŵŝƟŐĂƚĞĚ͘ ŵĂƩĞƌƐ͘ $XGLW&RPPLWWHH Rating dŚĞƵĚŝƚŽŵŵŝƩĞĞ;ͿŝƐĞƐƚĂďůŝƐŚĞĚďLJƚŚĞďŽĂƌĚŽĨ ϮϬϭϵ͕ DŝĐƌŽ&ŝŶĂŶnjĂ͕ ĂŶ ŝŶƚĞƌŶĂƟŽŶĂů ƌĂƟŶŐ ĂŐĞŶĐLJ͕ ĚŝƌĞĐƚŽƌƐƚŽďĞĂŬĞLJĐŽŵƉŽŶĞŶƚŽĨŵƌĞƚ͛ƐŐŽǀĞƌŶĂŶĐĞ ĂƐƐŝŐŶĞĚ ŵƌĞƚ ĂŶ ΗΗ ƌĂƟŶŐ ǁŝƚŚ Ă ƐƚĂďůĞ ŽƵƚůŽŽŬ͕ ĨƌĂŵĞǁŽƌŬǁŝƚŚƚŚĞƉƌŝŵĂƌLJƉƵƌƉŽƐĞƚŽĂƐƐŝƐƚƚŚĞďŽĂƌĚŽĨ ƌĞŇĞĐƟŶŐ ŵƌĞƚ͛Ɛ ƐƚƌŽŶŐ ĐĂƉĂĐŝƚLJ ƚŽ ŵĂŶĂŐĞ ƌŝƐŬƐ͘ ĚŝƌĞĐƚŽƌƐŝŶŽǀĞƌƐĞĞŝŶŐ͗ϭͿƚŚĞĞīĞĐƟǀĞŶĞƐƐĂŶĚĞĸĐŝĞŶĐLJ dŚŝƐ ĐĂƉĂĐŝƚLJ ŵĂLJ ďĞ ĂīĞĐƚĞĚ ďLJ Ă ĚĞƚĞƌŝŽƌĂƟŽŶ ŽĨ ƚŚĞ ŽĨ ŝŶƚĞƌŶĂů ĂƵĚŝƚ ĨƵŶĐƟŽŶ ŝŶ ŽǀĞƌĂůů ƌŝƐŬ ŵĂŶĂŐĞŵĞŶƚ͖ ŽƉĞƌĂƟŽŶƐ Žƌ ĞĐŽŶŽŵŝĐ ĐŽŶĚŝƟŽŶƐ͘ dŚĞ ŝŶƐƟƚƵƟŽŶ ŚĂƐ ϮͿ ƚŚĞ ŝŶƚĞŐƌŝƚLJ ŽĨ ĮŶĂŶĐŝĂů ƐƚĂƚĞŵĞŶƚƐ͕ ĂĐĐŽƵŶƟŶŐ͕ ĂŶĚ ƐƚƌŽŶŐĂŶĚƐƚĂďůĞĨƵŶĚĂŵĞŶƚĂůƐĂŶĚŐŽŽĚĐůŝĞŶƚƉƌŽƚĞĐƟŽŶ ĮŶĂŶĐŝĂů ƌĞƉŽƌƟŶŐ ƉƌŽĐĞƐƐĞƐ͖ ϯͿ ŝŶƚĞƌŶĂů ĐŽŶƚƌŽů ƐLJƐƚĞŵ ƐLJƐƚĞŵƐ͘ ĂŶĚ ĐŽŵƉůŝĂŶĐĞ ǁŝƚŚ ŝŶƚĞƌŶĂů ƉŽůŝĐŝĞƐ͕ ĂŶĚ ĂƉƉůŝĐĂďůĞ ůĂǁƐĂŶĚƌĞŐƵůĂƚŽƌLJƌĞƋƵŝƌĞŵĞŶƚƐ͖ϰͿƐĞƌǀŝĐĞƐƉƌŽǀŝĚĞĚďLJ ĞdžƚĞƌŶĂůĂƵĚŝƚŽƌƐĂŶĚϱͿŝŶĨŽƌŵĂƟŽŶƉƌŽǀŝĚĞĚƚŽƚŚĞƉƵďůŝĐ ĂŶĚ E ŝƐ ĐůĞĂƌ͕ ĂĐĐƵƌĂƚĞ ĂŶĚ ƌĞůŝĂďůĞ͘ dŚĞ ĐŽŵŵŝƩĞĞ ŵĞĞƚƐĂƚůĞĂƐƚĨŽƵƌƟŵĞƐĂLJĞĂƌ͕ĂŶĚŽƚŚĞƌǁŝƐĞĂƐƌĞƋƵŝƌĞĚ͘ dŚĞĐŚĂƌƚĞƌŽĨƚŚĞŝƐĂƉƉƌŽǀĞĚďLJƚŚĞĐŚĂŝƌƉĞƌƐŽŶŽĨ ƚŚĞ ďŽĂƌĚ ŽĨ ĚŝƌĞĐƚŽƌƐ ĂŶĚ ĚĞƐĐƌŝďĞĚ ǁŝƚŚ ŝƚƐ ŵŝƐƐŝŽŶ͕ ĂƵƚŚŽƌŝƟĞƐ͕ ƌĞƐƉŽŶƐŝďŝůŝƟĞƐ͕ ŵĞĞƟŶŐ ĂŶĚ ƌĞƉŽƌƟŶŐ͕ ĐŽŵƉŽƐŝƟŽŶĂŶĚĚŽĐƵŵĞŶƚǀĂůŝĚĂƟŽŶƉƌŽĐĞƐƐ͘dŚĞŝƐ ĐŽŵƉƌŝƐĞĚŽĨƚŚƌĞĞŶŽŶͲĞdžĞĐƵƟǀĞĚŝƌĞĐƚŽƌƐĂƉƉŽŝŶƚĞĚďLJ ƚŚĞ ďŽĂƌĚ ŽĨ ĚŝƌĞĐƚŽƌƐ͕ ŽŶĞ ŽĨ ǁŚŽŵ ŝƐ ĂŶ ŝŶĚĞƉĞŶĚĞŶƚ ĚŝƌĞĐƚŽƌĂƉƉŽŝŶƚĞĚĂƐĐŚĂŝƌƉĞƌƐŽŶŽĨƚŚĞĐŽŵŵŝƩĞĞ͗ ͻ Dƌ͘^ƌĞŶŐ^ĂŵŽƌŬ͕ ŚĂŝƌƉĞƌƐŽŶ ͻ Dƌ͘<ĂLJ>Žƚ͕ DĞŵďĞƌ ͻ ƌ͘ůĂƵĚĞ&ĂůŐŽŶ͕ DĞŵďĞƌ ͻ ĞƉƵƚLJͬŚŝĞĨ džĞĐƵƟǀĞKĸĐĞƌ͕ KďƐĞƌǀĞƌ ͻ ŚŝĞĨ/ŶƚĞƌŶĂůƵĚŝƚKĸĐĞƌ͕ ZĞƉŽƌƚĞƌĂŶĚ^ĞĐƌĞƚĂƌLJ dŚĞ/ŶƚĞƌŶĂůƵĚŝƚŝǀŝƐŝŽŶ;/ͿǁĂƐĞƐƚĂďůŝƐŚĞĚŝŶϭϵϵϴ ĂƐĂŬĞLJĐŽŵƉŽŶĞŶƚŽĨŵƌĞƚ͛ƐŐŽǀĞƌŶĂŶĐĞĨƌĂŵĞǁŽƌŬ͘/ƚƐ ƌĞƐƉŽŶƐŝďŝůŝƟĞƐĂƌĞĚĞĮŶĞĚŝŶƚŚĞ/ŶƚĞƌŶĂůƵĚŝƚŚĂƌƚĞƌ͘ dŚĞ / ŝƐ ŝŶĚĞƉĞŶĚĞŶƚ ŽĨ Ăůů ŵƌĞƚ͛Ɛ ŽƉĞƌĂƟŽŶƐ ĂŶĚ ƌĞƉŽƌƚƐ ĚŝƌĞĐƚůLJ ƚŽ ƚŚĞ ƵĚŝƚ ŽŵŵŝƩĞĞ͘ /ƚƐ ǀŝƐŝŽŶ ŝƐ ƚŽ ďĞƌĞĐŽŐŶŝnjĞĚĂƐĂƉƌŽĨĞƐƐŝŽŶĂůŝŶƚĞƌŶĂůĂƵĚŝƚďŽĚLJƚŚĂƚ ƉƌŽǀŝĚĞƐǀĂůƵĞͲĂĚĚĞĚƌĞĐŽŵŵĞŶĚĂƟŽŶƐƚŽŵĂŶĂŐĞŵĞŶƚ ĂŶĚ ƚƌƵƐƚĞĚ ĐŽŶƐƵůƚĂƟŽŶ ƚŽ ƚŚĞ ďŽĂƌĚ͘ /ƚƐ ŵŝƐƐŝŽŶ ŝƐ ƚŽ ƉƌŽǀŝĚĞƉƌŽĨĞƐƐŝŽŶĂůĂŶĚŝŶĚĞƉĞŶĚĞŶƚĂƉƉƌĂŝƐĂůƐŽĨŵƌĞƚ͛Ɛ ĂĐƟǀŝƟĞƐŝŶŽƌĚĞƌƚŽĂĚĚǀĂůƵĞďLJŝŵƉƌŽǀŝŶŐŽƉĞƌĂƟŽŶĂů ĞĸĐŝĞŶĐLJ ĂŶĚ ĞīĞĐƟǀĞŶĞƐƐ͕ ŵŽŶŝƚŽƌŝŶŐ ŝŶƚĞƌŶĂů ĐŽŶƚƌŽů $PUHWoVFOLHQW.RK.RQJSURYLQFH ƐLJƐƚĞŵƐ͕ ĂŶĚ ĞŶƐƵƌŝŶŐ ĐŽŵƉůŝĂŶĐĞ ǁŝƚŚ ƉŽůŝĐŝĞƐ͕ ůĂǁƐ ĂŶĚƌĞŐƵůĂƟŽŶƐ͘/ŶϮϬϭϵ͕ƚŚĞ/ĨƵůůLJŝŵƉůĞŵĞŶƚĞĚĂŶĚ Our Performance Annual Report 2019 29 Clients’7HVWLPRQLDOV 0V*KJRQ6HDQJKHQJ ĨĂƌŵĞƌ ůŝǀŝŶŐ ŝŶ <ďĂů <ŽŚ ǀŝůůĂŐĞ͕ <ĂŶĚĂů ƉƌŽǀŝŶĐĞ͘ ͞/ ƐƚĂƌƚĞĚ ďLJ ďŽƌƌŽǁŝŶŐ h^Ψϭ͕ϱϬϬ ĨƌŽŵ ŵƌĞƚ ŝŶ ŽƌĚĞƌ ƚŽ ďƵLJ ĂĚĚŝƟŽŶĂů ůĂŶĚ ĨŽƌ ƉůĂŶƟŶŐ͘ &ƌŽŵ LJĞĂƌ ƚŽ LJĞĂƌ͕ / ƐĂǁ ŵLJ ůŝǀĞůŝŚŽŽĚ ŝŶĐƌĞĂƐĞ͘ ZĞĐĞŶƚůLJ͕ / ĚĞĐŝĚĞĚƚŽďŽƌƌŽǁĂŶŽƚŚĞƌĐLJĐůĞŽĨ ĂƌŽƵŶĚh^Ψϳ͕ϬϬϬƚŽďƵLJĂŶĂĚĚŝƟŽŶĂů ƚƌĂĐƚŽƌ͕ ĂŶĚ / ŚĂǀĞ ŵŽƌĞ ƚŚĂŶ ϭϬ ŚĞĐƚĂƌĞƐĨŽƌĐƌŽƉƐŽŶŵLJĂŐƌŝĐƵůƚƵƌĂů ƉůŽƚ͘DLJĂŶŶƵĂůŝŶĐŽŵĞŝƐĞŶŽƵŐŚĨŽƌ ĚĂŝůLJĞdžƉĞŶƐĞƐĂŶĚĂƉĂƌƚĨƌŽŵƚŚĂƚ/ ŚĂǀĞĂƐĂǀŝŶŐƐĂĐĐŽƵŶƚǁŝƚŚŵƌĞƚĂƐ ǁĞůů͘͟ 30 Our Performance Annual Report 2019 0V7XP ďƵƐŝŶĞƐƐǁŽŵĂŶůŝǀŝŶŐŝŶdƌŽƉĂŝŶŐ ^ǀĂLJ ǀŝůůĂŐĞ͕ dĂŬĞŽ ƉƌŽǀŝŶĐĞ ǁŝƚŚ ĮǀĞĐŚŝůĚƌĞŶ͘^ŚĞŚĂƐŬŶŽǁŶŵƌĞƚ ^ŝŶĐĞ ϮϬϬϬ͕ ͞/ ŚĂǀĞ ŚĂĚ ůŽĂŶƐ ǁŝƚŚ ŵƌĞƚ ƚŚĂƚ ƐƚĂƌƚĞĚ ǁŝƚŚ h^ΨϮ͕ϬϬϬ ŝŶ ƚŚĞ ĮƌƐƚ ĐLJĐůĞ͕ ƚŚĞŶ h^ΨϮ͕ϬϬϬ ƚŽƉƵƌĐŚĂƐĞĂĐĂƌĨŽƌŵLJƐŽŶ;ƚĂdžŝͿ͘ / ŚĂǀĞ ŽďƐĞƌǀĞĚ ƚŚĂƚ ŵLJ ĂŶŶƵĂů ŝŶĐŽŵĞ ŚĂƐ ďĞĞŶ ŝŶĐƌĞĂƐŝŶŐ ƐŝŐŶŝĮĐĂŶƚůLJ͕ ƐŽ / ĐŽŶƟŶƵĞĚ ƚŽ ƚĂŬĞ ŽƵƚůŽĂŶƐǁŝƚŚŵƌĞƚƚŽĞdžƉĂŶĚŵLJ ďƵƐŝŶĞƐƐ͘dŚĞůĂƐƚĐLJĐůĞ͕/ƚŽŽŬŽƵƚĂ ůŽĂŶŽĨh^Ψϳ͕ϬϬϬƚŽƉƵƌĐŚĂƐĞĂŶĞǁ ĐĂƌ ĨŽƌ ŵLJ ƐŽŶ ;ƚĂdžŝͿ͘ / ĂůƐŽ ŚĂǀĞ Ă ƐĂǀŝŶŐƐ ĂĐĐŽƵŶƚ ǁŝƚŚ ŵƌĞƚ͘ >ĂƐƚůLJ͕ / ǁŽƵůĚ ůŝŬĞ ƚŽ ƚŚĂŶŬ ŵƌĞƚ ĨŽƌ ƚŚĞ ŚŝŐŚĞƌůŝǀŝŶŐƐƚĂŶĚĂƌĚŵLJĨĂŵŝůLJŶŽǁ ĞŶũŽLJƐ͘͟ Our Performance Annual Report 2019 31 Capacity %XLOGLQJ %HVW(PSOR\HU%UDQGLQJ$ZDUG ŵƌĞƚŝƐƉƌŽƵĚƚŽƌĞĐĞŝǀĞƚŚĞĞƐƚƐŝĂ͛Ɛ ŵƉůŽLJĞƌƌĂŶĚŝŶŐ ǁĂƌĚŝŶϮϬϭϵŚŽƐƚĞĚďLJ ŵƉůŽLJĞƌƌĂŶĚŝŶŐ/ŶƐƟƚƵƚĞ͕Ăƚ ƚŚĞtŽƌůĚ,ZŽŶŐƌĞƐƐΘ^ƚĂƌƐŽĨƚŚĞ/ŶĚƵƐƚƌLJ'ƌŽƵƉŽŶ ƵŐƵƐƚ ϭϱƚŚ͕ ϮϬϭϵ ŝŶ WĂŶ WĂĐŝĮĐ ,ŽƚĞů ^ŝŶŐĂƉŽƌĞ͘ dŚĞ ĞƐƚƐŝĂ͛Ɛ ŵƉůŽLJĞƌƌĂŶĚŝŶŐǁĂƌĚŝƐĂŐƌĞĂƚŚŽŶŽƵƌƚŽ ŵƌĞƚĂŶĚŝƚƐϰ͕ϱϬϬŚĂƌĚǁŽƌŬŝŶŐĚĞĚŝĐĂƚĞĚƐƚĂī͘ dŚŝƐĂǁĂƌĚŝƐĂƐƚƌŽŶŐƚĞƐƚĂŵĞŶƚŽĨŵƌĞƚ͛ƐĐŽŵŵŝƚŵĞŶƚ ƚŽ ĞdžĐĞůůĞŶĐĞ ŝŶ ƉƌŽŵŽƟŶŐ ƚĂůĞŶƚ ŵĂŶĂŐĞŵĞŶƚ͕ ĞŵƉůŽLJĞĞďĞŶĞĮƚƐ͕ƐƚĂīǁĞůĨĂƌĞ͕ĞŵƉůŽLJĞĞĞŶŐĂŐĞŵĞŶƚ͕ ƌĞĐƌƵŝƚŵĞŶƚ ĂŶĚ ƐƚĂī ƌĞƚĞŶƟŽŶ ƐƚƌĂƚĞŐLJ ŝŶ ĂĚĚŝƟŽŶ ƚŽ ŽƚŚĞƌŬĞLJŝŶŝƟĂƟǀĞƐĨŽƌĚĞǀĞůŽƉŝŶŐŚƵŵĂŶƌĞƐŽƵƌĐĞƐ͘ &RUSRUDWH6RFLDO3URJUDP ƐŝĚĞĨƌŽŵƚŚĞĨŽĐƵƐŽĨďƵƐŝŶĞƐƐŐƌŽǁƚŚ͕ŵƌĞƚŚĂƐƉůĂĐĞĚ ŽƌƉŽƌĂƚĞ^ŽĐŝĂůZĞƐƉŽŶƐŝďŝůŝƚLJ;^ZͿŝŶƚŚĞĐĞŶƚƌĂůƉĂƌƚ ŽĨ ŽƵƌ ĚĂŝůLJ ŽƉĞƌĂƟŽŶƐ͘ KƵƌ ^Z ƉƌŽŐƌĂŵ ŝŶ ĞĚƵĐĂƟŽŶ ƐĞĐƚŽƌŽīĞƌĞĚƵŶŝǀĞƌƐŝƚLJƐƚƵĚĞŶƚƐŝŶƚĞƌŶƐŚŝƉƐǁŚŝůƐƚŽƵƌ dŚĞƐŝƐZĞƐĞĂƌĐŚWƌŽŐƌĂŵŚĞůƉƐƚŽŵĂŬĞƐŝŐŶŝĮĐĂŶƚŝŵƉĂĐƚ ƚŽĐŽŵŵƵŶŝƟĞƐŝŶĂŵďŽĚŝĂ͘ KƵƌ /ŶƚĞƌŶƐŚŝƉ WƌŽŐƌĂŵ ŝƐ ĚĞƐŝŐŶĞĚ ƚŽ ƉƌŽǀŝĚĞ ŽƉƉŽƌƚƵŶŝƟĞƐĨŽƌƐƚƵĚĞŶƚƐƚŽĂĐƋƵŝƌĞƉƌŽĨĞƐƐŝŽŶĂůǁŽƌŬ ĞdžƉĞƌŝĞŶĐĞƐĂůŽŶŐǁŝƚŚƉƌĂĐƟĐĂůƐŬŝůůƐŝŶƌĞůĂƚĞĚĮĞůĚ͕ĂƐ ǁĞůůĂƐĂĐŚĂŶĐĞƚŽũŽŝŶŵƌĞƚĂƐĂƉĞƌŵĂŶĞŶƚĞŵƉůŽLJĞĞ͘ KƵƌdŚĞƐŝƐZĞƐĞĂƌĐŚWƌŽŐƌĂŵĐĂƚĞƌƐƚŽďŽƚŚƵŶĚĞƌŐƌĂĚƵĂƚĞ ĂŶĚƉŽƐƚͲŐƌĂĚƵĂƚĞƐƚƵĚĞŶƚƐƉĞƌĨŽƌŵŝŶŐƌĞƐĞĂƌĐŚŝŶƚŚĞŝƌ ĂƌĞĂŽĨŝŶƚĞƌĞƐƚĐŽŶĐĞƌŶŝŶŐŵƌĞƚ͛ƐďƵƐŝŶĞƐƐŽƉĞƌĂƟŽŶƐ͘ 'LJLWDO7DOHQW ůŝŐŶĞĚǁŝƚŚŵƌĞƚн^ƚƌĂƚĞŐLJŝŶŝŐŝƚĂůKƉƟŵŝnjĂƟŽŶ͕,ƵŵĂŶZĞƐŽƵƌĐĞƐĞƉĂƌƚŵĞŶƚŚĂƐĚĞǀĞůŽƉĞĚĚŝŐŝƚĂůƉůĂƞŽƌŵ ƚŚƌŽƵŐŚƉŽƉƵůĂƌƐŽĐŝĂůŵĞĚŝĂƐŝƚĞƐƐĞƌǀŝŶŐƚŚĞƉƵƌƉŽƐĞŽĨƐŚĂƌŝŶŐĐĂƌĞĞƌŽƉƉŽƌƚƵŶŝƚLJ͕ƐƚĂīĐĂƉĂĐŝƚLJĚĞǀĞůŽƉŵĞŶƚĂŶĚ ĞŶŐĂŐĞŵĞŶƚĂůŽŶŐǁŝƚŚŽƚŚĞƌďƵƐŝŶĞƐƐĂŶĚƐŽĐŝĂůĂĐƟǀŝƟĞƐ͘dŚŝƐĚŝŐŝƚĂůƚĂůĞŶƚĂĐƋƵŝƐŝƟŽŶƉůĂƞŽƌŵǁŝůůŝŵƉƌŽǀĞƚŚĞ ũŽďƐĞĞŬĞƌƐ͛ĞdžƉĞƌŝĞŶĐĞŝŶĂƉƉůŝĐĂƟŽŶƉƌŽĐĞƐƐĂƐǁĞůůĂƐĞŶĂďůĞƚŚĞŵƚŽĞdžƉůŽƌĞŵŽƌĞĂďŽƵƚŵƌĞƚ͘ dŚĞĚŝŐŝƚĂůƚĂůĞŶƚĂĐƋƵŝƐŝƟŽŶƉůĂƞŽƌŵŝŶĐůƵĚĞƐ͗ ͻ ŵƌĞƚWĞŽƉůĞĂŶĚ:ŽďƐ&ĂĐĞŬWĂŐĞ͗ŚƩƉƐ͗ͬͬǁǁǁ͘ĨĂĐĞŬ͘ĐŽŵͬŵƌĞƚ:ŽďƐͬ ͻ ŵƌĞƚ>ŝŶŬĞĚ/ŶWĂŐĞ͗ŚƩƉƐ͗ͬͬǁǁǁ͘ůŝŶŬĞĚŝŶ͘ĐŽŵͬĐŽŵƉĂŶLJͬϲϲϴϮϴϬͬĂĚŵŝŶͬ ͻ ^ĐĂŶƚŽĂƉƉůLJ͗:ŽďƐĞĞŬĞƌƐĐĂŶĂƉƉůLJĂŶĚƐƵďŵŝƚƚŚĞŝƌsƚŚƌŽƵŐŚYZŽĚĞƐĞĂŵůĞƐƐůLJĂŶLJƟŵĞ͕ĂŶLJǁŚĞƌĞ͘ 32 Our Performance Annual Report 2019 3URSRUWLRQRI&RPPHUFLDO6WDƪ 7RWDO6WDƪ WR7RWDO6WDƪ 4,599 4,100 3,979 77% 3,121 76% 2,727 75% 2,624 1,478 1,373 1,355 2017 2018 2019 2017 2018 2019 DĂůĞ &ĞŵĂůĞ dŽƚĂů ŽŵŵĞƌĐŝĂů^ƚĂī Our Performance Annual Report 2019 33 'LJLWDO+53URFHVV dŽĂůŝŐŶǁŝƚŚŵƌĞƚнƐƚƌĂƚĞŐLJ͕,ƵŵĂŶZĞƐŽƵƌĐĞƐŚĂƐƐƚƌĞŶŐƚŚĞŶĞĚŝƚƐƉƌŽĐĞƐƐƚŚƌŽƵŐŚĚŝŐŝƚĂůŝnjĂƟŽŶĂŝŵŝŶŐƚŽĞŶŚĂŶĐĞ ƐƚĂīĞdžƉĞƌŝĞŶĐĞ͕ũŽďĞĸĐŝĞŶĐLJĂŶĚƉƌŽĚƵĐƟǀŝƚLJ͘ŝŐŝƚĂů,ZƉƌŽĐĞƐƐĞƐŝŶĐůƵĚĞƐ͗ (3RUWDO ŵƌĞƚ ƵƐĞƐ ƚŚŝƐ ĐŚĂŶŶĞů ƚŽ ƉƵďůŝĐŝnjĞ Ăůů ŝŶĨŽƌŵĂƟŽŶ͕ ĂŶŶŽƵŶĐĞŵĞŶƚƐ͕ŶŽƟĮĐĂƟŽŶƐ͕ŽƌĞǀĞŶƚƐƚŽŵƌĞƚƐƚĂīŝŶ ŽŶĞĐĞŶƚƌĂůĐŚĂŶŶĞůǁŚŝĐŚŝƐƐŝŵƉůĞĂŶĚĞĂƐLJƚŽƵƐĞ͘ REGISTRATION E-PORTAL (PSOR\HH6HOI6HUYLFH (66 dŚŝƐĐŚĂŶŶĞůŝŶĐůƵĚĞƐ ͲWƌŽĮůĞ͕ ͲZĞĐƌƵŝƚŵĞŶƚ͕ ͲWĂLJƐůŝƉ͕ ĂŶĚ Ͳ>ĞĂǀĞ ƉƉůŝĐĂƟŽŶ͘ ŵƉůŽLJĞĞ ƐĞůĨͲƐĞƌǀŝĐĞƐ ŝƐ ĂŶ ĂƵƚŽŵĂƚĞĚƉƌŽĐĞƐƐƚŚĂƚƐƉĞĞĚƐƵƉƚŚĞƉƌŽĐĞƐƐŝŶŐƟŵĞŽĨ ƌĞƋƵĞƐƚƐĨƌŽŵƐƚĂī͕ůŝŶĞŵĂŶĂŐĞƌƐĂŶĚƚŚĞ,ZƚĞĂŵ͘ ESS +XPDQ5HVRXUFHV,QIRUPDWLRQ6\VWHP +5,6 dŚŝƐĐŚĂŶŶĞůŚĞůƉƐƚŽŵĂŶĂŐĞĞŵƉůŽLJĞĞĚĂƚĂĂŶĚ,Z͛ƐŵĂŝŶƉƌŽĐĞƐƐĞƐ͖ĨƌŽŵƚŚĞƐƚĂƌƚŽĨƌĞĐƌƵŝƚŵĞŶƚƚŽƚŚĞĞŶĚŽĨ ĞŵƉůŽLJĞĞ ĐĂƌĞĞƌ ǁŝƚŚ ŵƌĞƚ͘ dŚŝƐ ƐĞƌǀĞƐ ƚŽ ĂƐƐŝƐƚ ƚŚĞ ,Z ƚĞĂŵ ƚŽ ƉƌŽĚƵĐĞ ,Z ƌĞƉŽƌƚƐ ĨŽƌ ŵĂŶĂŐĞŵĞŶƚ ƚŽ ŵĂŬĞ ĚĞĐŝƐŝŽŶƐŽƌŝŶŝƟĂƚĞŚƵŵĂŶƌĞƐŽƵƌĐĞƐƚƌĂƚĞŐŝĞƐ͘ 34 Our Performance Annual Report 2019 +LJK3HUIRUPLQJ/HDGHUV+LJK3HUIRUPLQJ(PSO\HHV+LJK3HUIRUPLQJ Organization dŚĞ ƌĂŶĐŚ ŝƐ ƚŚĞ ĐŽƌĞ ŽƉĞƌĂƟŶŐ ƵŶŝƚ͘ /ƚƐ ƉĞƌĨŽƌŵĂŶĐĞ tĞ ďĞůŝĞǀĞ ƌĂŶĐŚ DĂŶĂŐĞƌƐ ŚĂǀĞ ďĞĐŽŵĞ ŵŽƌĞ ĚĞĮŶĞƐ ŝŶƐƟƚƵƟŽŶĂů ƉĞƌĨŽƌŵĂŶĐĞ͘ ƌĂŶĐŚ DĂŶĂŐĞŵĞŶƚ ƉƌŽĮĐŝĞŶƚ ŝŶ ůĞĂĚŝŶŐ ƚŚĞ ĐŽƌĞ ŽƉĞƌĂƟŶŐ ƵŶŝƚƐ ƚŽ ƌĞĂĐŚ WůƵƐ ;DнͿ ƚƌĂŝŶŝŶŐ ƉƌŽŐƌĂŵ ŝƐ ĚĞƐŝŐŶĞĚ ƚŽ ŝŵƉƌŽǀĞ ƚŚĞŝƌĂŶŶƵĂůƚĂƌŐĞƚƐŝŶĂůŵŽƐƚĞǀĞƌLJďƌĂŶĐŚ͕ƚŚƵƐĞŶĂďůŝŶŐ ƚŚĞƌŽůĞŽĨƌĂŶĐŚDĂŶĂŐĞƌƐ͕ĞƉƵƚLJƌĂŶĐŚDĂŶĂŐĞƌƐ ŵƌĞƚƚŽĂĐŚŝĞǀĞŚŝŐŚƌĞƐƵůƚƉĞƌĨŽƌŵĂŶĐĞŝŶϮϬϭϵ͘ ĂŶĚ^ĞŶŝŽƌKĸĐĞƌƐƵƐƚŽŵĞƌ^ĞƌǀŝĐĞ͕ŝŶƚƌĂŶƐůĂƟŶŐƚŚĞ dŚŝƐ ƉƌŽŐƌĂŵ ǁŽƵůĚ ŶŽƚ ďĞ ƉŽƐƐŝďůĞ ǁŝƚŚŽƵƚ ƚŚĞ ĨƵůů ĐŽŵƉĂŶLJƐƚƌĂƚĞŐLJŝŶƚŽĂĐƚƵĂůŝŵƉůĞŵĞŶƚĂƟŽŶĂƚďƌĂŶĐŚ ŝŶǀŽůǀĞŵĞŶƚĂŶĚƐƵƉƉŽƌƚĨƌŽŵŵĂŶĂŐĞŵĞŶƚŽĨĂůůůĞǀĞůƐ͕ ŽƉĞƌĂƟŶŐůĞǀĞůƐ͘dŚŝƐŝƐĂϮͲLJĞĂƌĐĞƌƟĮĐĂƟŽŶƉƌŽŐƌĂŵ͘ ĂŶĚ ƌĞůĂƚĞĚ ƐƵďũĞĐƚ ŵĂƩĞƌ ĞdžƉĞƌƚƐ͖ ĞƐƉĞĐŝĂůůLJ ,ĞĂĚ ŽĨ /Ŷ ϮϬϭϵ ǁĞ ďƌŽĂĚĞŶĞĚ ŽƵƌ ŵĂŶĂŐĞƌƐ ŽŶ ƌĂŶĐŚ ZĞŐŝŽŶƐ ǁŚŽ ƉůĂLJĞĚ ǀĞƌLJ ĂĐƟǀĞ ƌŽůĞƐ ŝŶ ƚŚĞ ƉƌŽŐƌĂŵ /ŵƉƌŽǀĞŵĞŶƚ ǁŽƌŬƐŚŽƉ͕ ĂƐŚďŽĂƌĚ hƐĂŐĞ͕ DLJ ĮƌƐƚ ĞdžĞĐƵƟŽŶ͘ &ŝŶĂŶĐĞ͕ ĂŶĚ DLJ &ŝƌƐƚ ,Z͘ KƚŚĞƌ ƌĞŵĂŝŶŝŶŐ ƚŽƉŝĐƐ ŽĨ /ŶĂĚĚŝƟŽŶƚŽƚŚĞƚƌĂŝŶŝŶŐƉƌŽŐƌĂŵ͕ƚŚĞƌĂŶĐŚDĂŶĂŐĞƌ͛Ɛ ƚŚĞ ƉƌŽŐƌĂŵ ǁŝůů ďĞ ĐŽŵƉůĞƚĞĚ ŝŶ ϮϬϮϬ ƐƵĐŚ ĂƐ ^ĂůĞ dŽŽůŬŝƚ ;Ă ƐƚŽƌĂŐĞ ƐLJƐƚĞŵ ĞŶĂďůŝŶŐ ďƌĂŶĐŚ ŵĂŶĂŐĞƌƐ dĞĐŚŶŝƋƵĞƐ͕ ƌĞĚŝƚ ƵůƚƵƌĞ͕ >ŽĂŶ ZĞĐŽǀĞƌLJ͕ >ĞĂĚĞƌƐŚŝƉ ƚŽ ƌĞƚƌŝĞǀĞ ƚƌĂŝŶŝŶŐ ŵĂƚĞƌŝĂůƐͿ ǁĂƐ ĐƌĞĂƚĞĚ ƚŽ ƐƚŽƌĞ Ăůů ^ŬŝůůƐ͕ĂŶĚWƌĞƐĞŶƚĂƟŽŶ^ŬŝůůƐ͘ ŵĂƚĞƌŝĂůƐƌĞƋƵŝƌĞĚ͖ƐƵĐŚĂƐǁŽƌŬŝŶŐƉƌŽĐĞĚƵƌĞƐ͕ƉŽůŝĐŝĞƐ͕ ƚƌĂŝŶŝŶŐŵĂƚĞƌŝĂůƐ͘ Our Performance Annual Report 2019 35 -RE3URƬFLHQF\5RRWHGLQ'D\WR'D\7UDLQLQJDQG'HYHORSPHQW Mr. Hour Vannak, Deputy Head͕ƉƉůŝĐĂƟŽŶĞǀĞůŽƉŵĞŶƚĂŶĚ^ƵƉƉŽƌƚ ŶƚĞƌƉƌŝƐĞŝŐĂƚĂWƌŽĨĞƐƐŝŽŶĂůĂƚ<ƵĂůĂ>ƵŵƉƵƌ͕DĂůĂLJƐŝĂ ĞŝŶŐĂƉĂƌƚŽĨĚĂƚĂĞŶŐŝŶĞĞƌŝŶŐĂŶĚŝŶŽƌĚĞƌƚŽĂůŝŐŶǁŝƚŚƚŚĞĐŽŵƉĂŶLJƐƚƌĂƚĞŐLJĨŽƌĚĞĐŝƐŝŽŶ ŵĂŬŝŶŐŽŶĚĂƚĂ͕ ŶƚĞƌƉƌŝƐĞŝŐĂƚĂWƌŽĨĞƐƐŝŽŶĂůŝƐĂĨŽƵŶĚĂƟŽŶǁŚŝĐŚŝƐĚƌŝǀŝŶŐƵƐƚŽĂƉƉůLJĨŽƌ ƚŚĞďĞƐƚƉƌĂĐƟĐĞŝŶƐƚĂŶĚĂƌĚĨƌĂŵĞǁŽƌŬ͘ /ƚ ǁĂƐ ĂŶ ĂŵĂnjŝŶŐ ĐŽƵƌƐĞ ĂŶĚ ƉƌŽŐƌĂŵ ŽīĞƌŝŶŐ ŵĞ ŐƌĞĂƚ ĞdžƉĞƌŝĞŶĐĞƐ ĂŶĚ ŝƚ ĚĞĞƉĞŶ ŵLJ ŬŶŽǁůĞĚŐĞ͘ĞƐŝĚĞƐ͕/ĂůƐŽĞŶũŽLJĞĚƚŚĞƚƌĂǀĞůůŝŶŐ͕ƚĂƐƟŶŐŶĞǁĚĞůŝĐŝŽƵƐĨŽŽĚĂŶĚĂƚƚŚĞƐĂŵĞ ƟŵĞŐĞƚĂĐĞƌƟĮĐĂƚĞĨƌŽŵƚŚĞƉƌŽŐƌĂŵ͘ ŵƌĞƚƉƌŽǀŝĚĞƐŽƉƉŽƌƚƵŶŝƟĞƐĨŽƌƐƚĂīƚŽĚĞǀĞůŽƉĨƵŶĐƟŽŶĂůĂŶĚƐŽŌƐŬŝůůƐƚŽĞŶŚĂŶĐĞƚŚĞŝƌĞĸĐŝĞŶĐLJŽĨƚŚĞŝƌĐƵƌƌĞŶƚ ƌŽůĞƚŚĂƚƌĞƋƵŝƌĞƐĞdžƉĞƌƟƐĞĨŽƌĨƵƚƵƌĞĂƐƐŝŐŶŵĞŶƚƐ͘ŵƌĞƚŚĂƐƐŝŶĐĞŽīĞƌĞĚϱϵƚƌĂŝŶŝŶŐĐŽƵƌƐĞƐƚŽϯϲϭƐƚĂīŽŶ&ƵŶĐƟŽŶĂů ^ŬŝůůƐ͕ƌŽƐƐͲ&ƵŶĐƟŽŶĂů^ŬŝůůƐ͕ĞŚĂǀŝŽƵƌĂů^ŬŝůůƐ͕ĂŶĚDĂŶĂŐĞƌŝĂů^ŬŝůůƐ͘ĞƐŝĚĞƐ͕ŵƌĞƚĂůƐŽĞŶĚŽƌƐĞĚŶŝŶĞŵĂŶĂŐĞŵĞŶƚ ƐƚĂīƚŽĂƩĞŶĚŝŶƚĞƌŶĂƟŽŶĂůƚƌĂŝŶŝŶŐƉƌŽŐƌĂŵƐŝŶǀĂƌŝŽƵƐĐŽƵŶƚƌŝĞƐƐƵĐŚĂƐdŚĂŝůĂŶĚ͕^ŝŶŐĂƉŽƌĞ͕&ƌĂŶĐĞ͕sŝĞƚŶĂŵ͕ĂŶĚ DĂůĂLJƐŝĂ͘ *RRG6RLO*RRG6HHGV dŽŵĂŶĂŐĞƐƚĂī͛ƐĐĂƌĞĞƌŐƌŽǁƚŚ͕ƚŚĞdĂůĞŶƚĞǀĞůŽƉŵĞŶƚWƌŽŐƌĂŵǁĂƐŝŶƚƌŽĚƵĐĞĚďLJŵƌĞƚƚŽĨŽƐƚĞƌĐĂƌĞĞƌŐƌŽǁƚŚ͘ dŚŝƐƉƌŽŐƌĂŵƐŚĂƉĞƐƐƚĂī͛ƐƉŽƚĞŶƟĂůƚŽƚŚĞŶĞdžƚůĞǀĞůŽĨƌĞƐƉŽŶƐŝďŝůŝƟĞƐŽƌƚŽŵĂŶĂŐĞďŝŐŐĞƌƉƌŽũĞĐƚ͘dŽŐĞƚŚĞƌǁŝƚŚƚŚĞ ,ŝŐŚWĞƌĨŽƌŵŝŶŐWƌŽŐƌĂŵ͕ϭϬϯƐƚĂīŚĂǀĞƉĂƌƟĐŝƉĂƚĞĚĂŶĚďĞŶĞĮƩĞĚĨƌŽŵƚŚĞƐĞƉƌŽŐƌĂŵƐĂŶĚŵƌĞƚǁŝůůĐŽŶƟŶƵĞƚŽ ƉƌŝŽƌŝƟnjĞŝƚŝŶϮϬϮϬ͘ 36 Our Performance Annual Report 2019 (QJOLVKLVQRWMXVWDODQJXDJHEXWDOVRDSDVVSRUWWRJUHDWHURSSRUWXQLWLHV ^ƵƉƉŽƌƟŶŐƚŚĞĨĂƐƚĚĞǀĞůŽƉŵĞŶƚŝŶŵƌĞƚ͕ĂƐǁĞůůĂƐĐŽŶƚƌŝďƵƟŶŐƚŽƐŽĐŝĂůĚĞǀĞůŽƉŵĞŶƚŝŶĂŵďŽĚŝĂ͕ ŶŐůŝƐŚŚĂƐ ďĞĐŽŵĞĂŐŽůĚĞŶŐĂƚĞǁĂLJĂŶĚƚŚĞƉƌŝŵĂƌLJŵĞĂŶƐŽĨŝŶƚĞƌĂĐƟŶŐĂŵŽŶŐƐƚĞŵƉůŽLJĞĞƐŝŶŵƌĞƚ͘/ŶϮϬϭϴ͕ƚŚĞEnglish WƌŽĮĐŝĞŶĐLJWƌŽŐƌĂŵǁĂƐůĂƵŶĐŚĞĚŝŶŵƌĞƚƚŚƌŽƵŐŚƚŚĞ>ĞĂƌŶŝŶŐĂŶĚĞǀĞůŽƉŵĞŶƚĞƉĂƌƚŵĞŶƚ͕ĂŝŵŝŶŐƚŽƉƌŽǀŝĚĞĂŶĚ ƐƚƌĞŶŐƚŚĞŶ ŶŐůŝƐŚĂďŝůŝƚLJĂƚǁŽƌŬƉůĂĐĞ͘WƌŽĮĐŝĞŶĐLJŝŶ ŶŐůŝƐŚŚĞůƉƐĐƌĞĂƚĞŽƉƉŽƌƚƵŶŝƟĞƐĨŽƌĞŵƉůŽLJĞĞĂƐƚŚĞLJĚĞĞƉĞŶ ƚŚĞŝƌŬŶŽǁůĞĚŐĞŝŶ ŶŐůŝƐŚ͘>ĞĂƌŶŝŶŐĂŶĚĞǀĞůŽƉŵĞŶƚĞƉĂƌƚŵĞŶƚŚĂƐƉůĂLJĞĚĂǀŝƚĂůƌŽůĞŝŶĨĂĐŝůŝƚĂƟŶŐ͕ƐƵƉƉŽƌƟŶŐ͕ ĂŶĚĞŶƐƵƌŝŶŐƚŚĂƚƚŚĞ ŶŐůŝƐŚĐůĂƐƐĞƐŐŽƐŵŽŽƚŚůLJĂŶĚĞīĞĐƟǀĞůLJ͘ 'LJLWDO(UD'LJLWDO/HDUQLQJ %XLOG&RQFUHWH)RXQGDWLRQ'HYHORS 3URƬFLHQF\RI2XU)URQWOLQH6WDƪ 'HOLYHU*UHDW6HUYLFHV dŽ ďĞ ĂůŝŐŶĞĚ ǁŝƚŚ ĚŝŐŝƚĂůŝnjĂƟŽŶ͕ ŵƌĞƚ ŚĂƐ ďĞĞŶ ŝŵƉůĞŵĞŶƟŶŐ ŝŐŝƚĂů >ĞĂƌŶŝŶŐ ƚŚƌŽƵŐŚ ƚŚĞ >ĞĂƌŶŝŶŐ DĂŶĂŐĞŵĞŶƚ ^LJƐƚĞŵ͘ dǁĞŶƚLJͲŶŝŶĞ ĞͲůĞĂƌŶŝŶŐ ĐŽƵƌƐĞƐ /ŶϮϬϭϵ͕>ΘƉƌŽǀŝĚĞĚƚƌĂŝŶŝŶŐƚŽϵϵϵŶĞǁƐƚĂīĐŽŶƐŝƐƟŶŐ ǁĞƌĞĚĞƉůŽLJĞĚƐƵĐĐĞƐƐĨƵůůLJŝŶϮϬϭϵ͕ǁŚŝĐŚĐĂƚĞƌƐƚŽŽǀĞƌ ŽĨ ϲϳϯ ƵƐƚŽŵĞƌ ZĞůĂƟŽŶ KĸĐĞƌƐ͕ ϲϵ ^ĞŶŝŽƌ ƵƐƚŽŵĞƌ ϰ͕ϬϬϬƵƐĞƌƐ͘DĂŶLJǀŝĚĞŽƐǁĞƌĞƉƌŽĚƵĐĞĚƚŽĞŶŐĂŐĞƐƚĂī ZĞůĂƟŽŶ KĸĐĞƌƐ͕ ϵϳ ƌĂŶĐŚ dĞůůĞƌƐ͕ ϵϵ DŽďŝůĞ ^ĂǀŝŶŐ ůĞĂƌŶŝŶŐĐĂƉĂĐŝƚLJĂŶĚĚĞǀĞůŽƉŵĞŶƚ͘ KĸĐĞƌƐ͕ĂŶĚϲϭƵƐƚŽŵĞƌ^ĞƌǀŝĐĞKĸĐĞƌƐ͘ĚĚŝƟŽŶĂůůLJ͕ ǁĞ ƉƌŽǀŝĚĞĚ ƚƌĂŝŶŝŶŐ ƚŽ ϭϵϲ /ŶƚĞƌŶƐ͕ ϰϭϰ ƉƌŽŵŽƚĞĚ Θ ƚƌĂŶƐĨĞƌƌĞĚƐƚĂī͕ϭϮϲƌĞƉůĂĐĞŵĞŶƚƐƚĂī͕ĐŽĂĐŚϵϭϱŶĞǁ ĂŶĚĞdžŝƐƟŶŐƐƚĂī͕ŝŶĐůƵĚŝŶŐϮ͕ϱϴϲƐƚĂīŽŶŶĞǁƉƌŽũĞĐƚƐ͕ ƉƌŽĚƵĐƚƐ͕ĂŶĚƐĞƌǀŝĐĞƐ͘ Our Performance Annual Report 2019 37 ,QWURGXFWLRQ ŵƌĞƚ ŶǀŝƌŽŶŵĞŶƚĂůĂŶĚ^ŽĐŝĂůWĞƌĨŽƌŵĂŶĐĞDĂŶĂŐĞŵĞŶƚ; ^WDͿŝŶϮϬϭϵŝƐĚĞƐŝŐŶĞĚĂƌŽƵŶĚƚŚƌĞĞƐƉĞĐŝĮĐŐŽĂůƐĂŶĚ ŽďũĞĐƟǀĞƐ͘ EMPLOYEES Goal I: To achieve high responsibility toward employees. Objective: To build and maintain positive and HƪHFWLYHZRUNLQJ environment. Goal II: Goal III: To achieve high To achieve high responsibility toward clients. responsibility toward the Objective: environment. To develop client capacity Objective: and ensure clients are fully To protect environment SURWHFWHGƬQDQFLDO and crisis. conserve natural resources. T T HE EN CLIENTS ENVIRONM tĞƵŶĚĞƌƚŽŽŬĂǀĂƌŝĞƚLJŽĨĂĐƟǀŝƟĞƐĂŝŵĞĚĂƚĨŽƐƚĞƌŝŶŐŚĂƌŵŽŶŝŽƵƐƌĞůĂƟŽŶƐǁŝƚŚĞŵƉůŽLJĞĞƐ͕ůŽĐĂůĐŽŵŵƵŶŝƟĞƐ͕ĂŶĚ ƚŚĞĞŶǀŝƌŽŶŵĞŶƚ͘ tĞďĞůŝĞǀĞĚŽƵƌ ^WDƉƌŽŐƌĂŵƐǁŝůůŚĞůƉŵƌĞƚƚŽďĞĂƐŽĐŝĂůůLJƌĞƐƉŽŶƐŝďůĞĂŶĚƐƵƐƚĂŝŶĂďůĞĮŶĂŶĐŝĂůŝŶƐƟƚƵƟŽŶŝŶ ĂŵďŽĚŝĂ͘ .H\+LJKOLJKWV tŝƚŚ ŽƵƌ ƐƚƌŽŶŐ ĐŽŵŵŝƚŵĞŶƚ ƚŽ ďĂůĂŶĐĞ ŽƵƌ ĮŶĂŶĐŝĂů ĂŶĚ ƐŽĐŝĂů ŵŝƐƐŝŽŶ͕ ǁĞ ŚĂǀĞ ĂĐĐŽŵƉůŝƐŚĞĚ ĂŶĚ ĐŽŵƉůĞƚĞĚ ŶƵŵĞƌŽƵƐƐŽĐŝĂůĂŶĚĞŶǀŝƌŽŶŵĞŶƚĂůƉƌŽũĞĐƚƐ͘ 38 Our Corporate Responsibility Annual Report 2019 Environmental and Social Performance Management 7R%XLOGDQG6XVWDLQ3RVLWLYHDQG(ƪHFWLYH:RUNLQJ(QYLURQPHQW 1,263 EMPLOYEES participated 1,457 EMPLOYEES Capacity Building claimed the insurance 1,478 1,559 EMPLOYEES and Talent for their family WOMEN EMPLOYEES claimed the life Management Program are proud employee 4,599 and health insurance 1,392 EMPLOYEES of Amret 229 WOMEN FULL-TIME EMPLOYEE were promoted employees received registered with life and full maternity pays health insurance 1,263 1,478 299 4,599 1,559 1,457 1,392 $PUHW&RQWULEXWHVWR1DWLRQ%XLOGLQJZLWK&RPPXQLW\/HDUQLQJ3URMHFWV 3,975 PEOPLE 900 300 STUDENTS 2,000 MICRO/ 83% 82% 95% MICRO FAMERS/ SMALL FARMERS OF PARTICIPANTS OF PARTICIPANTS AMONG SMALL BUSINESS PRACTITIONERS participated in participated Financial Literacy Financial Literacy participated in recognized the shared Program received classroom Workshop agriculture training HƪHFWLYHQHVV knowledge and area recognized (including training of (Amret and Ministry of of training program of expertise to other the positive impact Booth activities) Financial Literacy Education, Youth participants on their livelihood and Sport) after applying new skill Our Corporate Responsibility Annual Report 2019 39 7R3URWHFW(QYLURQPHQWDQG&RQVHUYH1DWXUDO5HVRXUFHV Energy Audit and Environmental Plastic Management Waste Management Carbon Footprint and Social Risks Education Project Measurement Waste Management Project 45,000 Energy Audit and Carbon 29,000 piloted at HQ and in several loans have been screened Footprint Measurement people are aware of markets in Phnom Penh to detect Environmental have been implemented Plastic Management (focused on plastic waste) and Social Risks DW$PUHW+HDG2ƯFH Education 2WKHU$FKLHYHPHQWV8QGHU(QYLURQPHQWDQG6RFLDO3URJUDPV WŽǀĞƌƚLJWƌŽďĂďŝůŝƚLJ/ŶĚĞdž ƐƐĞƐƐŵĞŶƚͲŵƌĞƚ ƵƉůŝŌĞĚϮ͕ϰϬϬĨĂŵŝůLJ ŽŵƉůĞƚĞĚ^ŽĐŝĂů^ĞůĨͲ ŵĞŵďĞƌƐ;ϰϴϬŚŽƵƐĞŚŽůĚƐͿ ƐƐĞƐƐŵĞŶƚǁŝƚŚ^ŽĐŝĂů ĨƌŽŵƉŽǀĞƌƚLJůĞǀĞůĂŵŽŶŐƐƚ WĞƌĨŽƌŵĂŶĐĞ/ŶĚŝĐĂƚŽƌ ŽƵƌďŽƌƌŽǁĞƌƐ ǀĞƌƐŝŽŶϰ ^ƵĐĐĞƐƐĨƵůůLJĐŽŵƉůĞƚĞĚ Ϯϭ͕ϬϬϬĐůŝĞŶƚƐƉĂƌƟĐŝƉĂƚĞĚ ƚŚĞƉŝůŽƚŽĨŝŐŝƚĂůůŝĞŶƚ ŝŶƌĂŶĐŚŽŵŵƵŶŝƚLJ WƌŽƚĞĐƟŽŶWƌŝŶĐŝƉůĞƐ WƌŽũĞĐƚƐ͘>ŽƚƐŽĨƐŵŝůĞĨƌŽŵ ;ŵƌĞƚ͕DͲZ/>͕ĂŶĚ ƉĂƌƟĐŝƉĂŶƚƐŽĨƉƌŽŐƌĂŵƐ͘ ^DZdͿ ĞƐŝĚĞƐĂĐƟǀĞůLJŵĂŶĂŐŝŶŐŽƵƌĞŶǀŝƌŽŶŵĞŶƚĂůĂŶĚƐŽĐŝĂůƉĞƌĨŽƌŵĂŶĐĞŽďůŝŐĂƟŽŶƐǁŝƚŚĐŽŵŵƵŶŝƚLJĂĐƟǀŝƟĞƐ͕ŵƌĞƚ ĂůƐŽĚĞƐŝŐŶĞĚĮŶĂŶĐŝĂůůŝƚĞƌĂĐLJƉƌŽŐƌĂŵƐƚŽŚĞůƉŽƵƌĐůŝĞŶƚƐŵĂŶĂŐĞƚŚĞŝƌĐĂƐŚŇŽǁ͕ŝŶǀĞƐƚŵĞŶƚƐĂŶĚĞŶŚĂŶĐŝŶŐƚŚĞŝƌ ƉƌŽĚƵĐƟǀŝƚLJŝŶĂŐƌŝĐƵůƚƵƌĞĂĐƟǀŝƟĞƐ͘WƌŽŐƌĂŵƐĂƌĞĚĞƐŝŐŶĞĚǁŝƚŚĞdžƉĞƌƟƐĞĨƌŽŵƚŚĞDŝŶŝƐƚƌLJŽĨŐƌŝĐƵůƚƵƌĞ͕&ŽƌĞƐƚƌLJ ĂŶĚ&ŝƐŚĞƌŝĞƐ͕ďƵƐŝŶĞƐƐƉĂƌƚŶĞƌƐŽĨĂŐƌŝĐƵůƚƵƌĞƉƌŽĚƵĐƚƐƚŽDŝŶŝƐƚƌLJŽĨ ĚƵĐĂƟŽŶ͕zŽƵƚŚĂŶĚ^ƉŽƌƚ͘ ŵƌĞƚŝƐĐŽŵŵŝƩĞĚĂŶĚǁŝůůĐŽŶƟŶƵĞƚŽĂĚĚǀĂůƵĞƚŽƚŚĞĐŽŵŵƵŶŝƚLJǁŝƚŚŵŽƌĞƉƌŽŐƌĂŵƐƚŽĂĐŚŝĞǀĞŐƌĞĂƚĞƌƉƌŽĚƵĐƟǀŝƚLJ ĂŶĚƵƐĂŐĞŽĨĨƵŶĚƐƚŽďĞƩĞƌƚŚĞŝƌůŝǀĞůŝŚŽŽĚ͘ 40 Our Corporate Responsibility Annual Report 2019 'RQDWHRQHVFKRROEXLOGLQJDQGPDWHULDOVWRVWXGHQWV LQ.UDEHL5LHOVHFRQGDU\VFKRROLQ6LHP5HDS Our Corporate Responsibility Annual Report 2019 41 Tax Paid Report 2019 2018 7<3(2)7$;(6 .+5o .+5o Income Tax 29,991,627 23,507,707 Prepayment of Income Tax 6,066,232 5,340,928 Withholding Tax 21,173,034 17,121,715 Tax on Salary 8,134,838 8,042,768 Other Taxes 85,659.37 107,331 Total 65,451,390 54,120,449 42 Our Financial Statements Annual Report 2019 ZZZ $QQXDO5HSRUW is available at www.Amret.com.kh (;75$&7(' ),1$1&,$/ 67$7(0(176 7KH([WUDFHG)LQDQFLDO for the year ended 31 December 2019 statements are available on page 43-51 44 Directors’ Report 46 Independent Auditor’s Report )LQDQFLDO6WDWHPHQWV 48 Statement of Financial Position 49 6WDWHPHQWRI3URƬWRUORVVDQGRWKHUFRPSUHKHQVLYHLQFRPH 50 Statement 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ŽƉŝŶŝŽŶ ŽĨ ƚŚĞ ŝƌĞĐƚŽƌƐ͕ ǁŝůů Žƌ ŵĂLJ ŚĂǀĞ Ă ŵĂƚĞƌŝĂů ĞīĞĐƚ ŽŶ ƚŚĞ ĂďŝůŝƚLJ ŽĨ ƚŚĞ ŽŵƉĂŶLJ ƚŽ ŵĞĞƚŝƚƐŽďůŝŐĂƟŽŶƐĂƐĂŶĚǁŚĞŶƚŚĞLJďĞĐŽŵĞĚƵĞ͘ dŚĞƌĞ ǁĞƌĞ ŶŽ ĐŚĂŶŐĞƐ ŝŶ ƚŚĞ ƐŚĂƌĞŚŽůĚĞƌƐ ŽĨ ƚŚĞ ŽŵƉĂŶLJĚƵƌŝŶŐƚŚĞLJĞĂƌ͘ Change of Circumstances %DGDQG'RXEWIXO)LQDQFLDO)DFLOLWLHV ƚƚŚĞĚĂƚĞŽĨƚŚŝƐƌĞƉŽƌƚ͕ƚŚĞŝƌĞĐƚŽƌƐĂƌĞŶŽƚĂǁĂƌĞŽĨ ĂŶLJĐŝƌĐƵŵƐƚĂŶĐĞƐ͕ŶŽƚŽƚŚĞƌǁŝƐĞĚĞĂůƚǁŝƚŚŝŶƚŚŝƐƌĞƉŽƌƚ ĞĨŽƌĞ ƚŚĞ ĮŶĂŶĐŝĂů ƐƚĂƚĞŵĞŶƚƐ ŽĨ ƚŚĞ ŽŵƉĂŶLJ ǁĞƌĞ ŽƌƚŚĞĮŶĂŶĐŝĂůƐƚĂƚĞŵĞŶƚƐŽĨƚŚĞŽŵƉĂŶLJ͕ǁŚŝĐŚǁŽƵůĚ ĚƌĂǁŶƵƉ͕ƚŚĞŝƌĞĐƚŽƌƐƚŽŽŬƌĞĂƐŽŶĂďůĞƐƚĞƉƐƚŽĂƐĐĞƌƚĂŝŶ ƌĞŶĚĞƌ ĂŶLJ ĂŵŽƵŶƚ ƐƚĂƚĞĚ ŝŶ ƚŚĞ ĮŶĂŶĐŝĂů ƐƚĂƚĞŵĞŶƚƐ ƚŚĂƚĂĐƟŽŶŚĂĚďĞĞŶƚĂŬĞŶŝŶƌĞůĂƟŽŶƚŽƚŚĞǁƌŝƟŶŐŽī ŵŝƐůĞĂĚŝŶŐŝŶĂŶLJŵĂƚĞƌŝĂůƌĞƐƉĞĐƚ͘ ŽĨ ďĂĚ ůŽĂŶƐ ĂŶĚ ĂĚǀĂŶĐĞƐ Žƌ ŵĂŬŝŶŐ ŽĨ ĂůůŽǁĂŶĐĞ ĨŽƌ ŝŵƉĂŝƌŵĞŶƚ ůŽƐƐĞƐ͕ ĂŶĚ ƐĂƟƐĮĞĚ ƚŚĞŵƐĞůǀĞƐ ƚŚĂƚ Ăůů ŬŶŽǁŶďĂĚůŽĂŶƐĂŶĚĂĚǀĂŶĐĞƐŚĂĚďĞĞŶǁƌŝƩĞŶŽīĂŶĚ ,WHPVRIDQ8QXVXDO1DWXUH ƚŚĂƚĂĚĞƋƵĂƚĞůŽƐƐĂůůŽǁĂŶĐĞŚĂƐďĞĞŶŵĂĚĞĨŽƌďĂĚĂŶĚ ĚŽƵďƞƵůůŽĂŶƐĂŶĚĂĚǀĂŶĐĞƐ͘ dŚĞ ƌĞƐƵůƚƐ ŽĨ ƚŚĞ ŽƉĞƌĂƟŽŶƐ ŽĨ ƚŚĞ ŽŵƉĂŶLJ ĨŽƌ ƚŚĞ ƚ ƚŚĞ ĚĂƚĞ ŽĨ ƚŚŝƐ ƌĞƉŽƌƚ ĂŶĚ ďĂƐĞĚ ŽŶ ƚŚĞ ďĞƐƚ LJĞĂƌǁĞƌĞŶŽƚ͕ŝŶƚŚĞŽƉŝŶŝŽŶŽĨƚŚĞŝƌĞĐƚŽƌƐ͕ŵĂƚĞƌŝĂůůLJ ŽĨ ŬŶŽǁůĞĚŐĞ͕ ƚŚĞ ŝƌĞĐƚŽƌƐ ĂƌĞ ŶŽƚ ĂǁĂƌĞ ŽĨ ĂŶLJ ĂīĞĐƚĞĚďLJĂŶLJŝƚĞŵƐ͕ƚƌĂŶƐĂĐƟŽŶƐŽƌĞǀĞŶƚƐŽĨĂŵĂƚĞƌŝĂů ĐŝƌĐƵŵƐƚĂŶĐĞƐǁŚŝĐŚǁŽƵůĚƌĞŶĚĞƌƚŚĞĂŵŽƵŶƚǁƌŝƩĞŶŽī ĂŶĚƵŶƵƐƵĂůŶĂƚƵƌĞ͘dŚĞƌĞŚĂƐŶŽƚĂƌŝƐĞŶŝŶƚŚĞŝŶƚĞƌǀĂů ĨŽƌďĂĚůŽĂŶƐĂŶĚĂĚǀĂŶĐĞƐŽƌƚŚĞĂŵŽƵŶƚŽĨƚŚĞĂůůŽǁĂŶĐĞ ďĞƚǁĞĞŶƚŚĞĞŶĚŽĨƚŚĞLJĞĂƌĂŶĚƚŚĞĚĂƚĞŽĨƚŚŝƐƌĞƉŽƌƚ ĨŽƌŝŵƉĂŝƌŵĞŶƚůŽƐƐĞƐŝŶƚŚĞĮŶĂŶĐŝĂůƐƚĂƚĞŵĞŶƚƐŽĨƚŚĞ ĂŶLJ ŝƚĞŵƐ͕ ƚƌĂŶƐĂĐƟŽŶƐ Žƌ ĞǀĞŶƚƐ ŽĨ Ă ŵĂƚĞƌŝĂů ĂŶĚ ŽŵƉĂŶLJŝŶĂĚĞƋƵĂƚĞƚŽĂŶLJŵĂƚĞƌŝĂůĞdžƚĞŶƚ͘ ƵŶƵƐƵĂůŶĂƚƵƌĞůŝŬĞůLJ͕ŝŶƚŚĞŽƉŝŶŝŽŶŽĨƚŚĞŝƌĞĐƚŽƌƐ͕ƚŽ 44 Our Financial Statements Annual Report 2019 ƐƵďƐƚĂŶƟĂůůLJ ĂīĞĐƚ ƚŚĞ ƌĞƐƵůƚƐ ŽĨ ƚŚĞ ŽƉĞƌĂƟŽŶƐ ŽĨ ƚŚĞ ĨŽƌĞƐĞĞĂďůĞĨƵƚƵƌĞ͖ĂŶĚ ŽŵƉĂŶLJĨŽƌƚŚĞLJĞĂƌŝŶǁŚŝĐŚƚŚŝƐƌĞƉŽƌƚŝƐŵĂĚĞ͘ ǀͿ ĞīĞĐƟǀĞůLJ ĐŽŶƚƌŽů ĂŶĚ ĚŝƌĞĐƚ ƚŚĞ ŽŵƉĂŶLJ ŝŶ Ăůů ŵĂƚĞƌŝĂů ĚĞĐŝƐŝŽŶƐ ĂīĞĐƟŶŐ ƚŚĞ ŽƉĞƌĂƟŽŶƐ ĂŶĚ 7KH%RDUGRI'LUHFWRUV ƉĞƌĨŽƌŵĂŶĐĞĂŶĚĂƐĐĞƌƚĂŝŶƚŚĂƚƐƵĐŚŵĂƩĞƌƐŚĂǀĞ ďĞĞŶƉƌŽƉĞƌůLJƌĞŇĞĐƚĞĚŝŶƚŚĞĮŶĂŶĐŝĂůƐƚĂƚĞŵĞŶƚƐ͘ dŚĞ ŝƌĞĐƚŽƌƐ ĐŽŶĮƌŵ ƚŚĂƚ ƚŚĞ ŽŵƉĂŶLJ ŚĂƐ ĐŽŵƉůŝĞĚ dŚĞ ŵĞŵďĞƌƐŽĨ ƚŚĞŽĂƌĚ ŽĨ ŝƌĞĐƚŽƌƐĚƵƌŝŶŐ ƚŚĞLJĞĂƌ ǁŝƚŚ ƚŚĞ ĂďŽǀĞ ƌĞƋƵŝƌĞŵĞŶƚƐ ŝŶ ƉƌĞƉĂƌŝŶŐ ƚŚĞ ĮŶĂŶĐŝĂů ĂŶĚĂƚƚŚĞĚĂƚĞŽĨƚŚŝƐƌĞƉŽƌƚĂƌĞ͗ ƐƚĂƚĞŵĞŶƚƐ͘ • ƌ͘ůĂƵĚĞ&ĞƌŶĂŶĚ'ĞƌŵĂŝŶ&>'KE ŚĂŝƌŵĂŶ $SSURYDORIWKH)LQDQFLDO6WDWHPHQWV • Dƌ͘<z>Žƚ /ŶĚĞƉĞŶĚĞŶƚĚŝƌĞĐƚŽƌ dŚĞ ĂĐĐŽŵƉĂŶLJŝŶŐ ĮŶĂŶĐŝĂů ƐƚĂƚĞŵĞŶƚƐ͕ ƚŽŐĞƚŚĞƌ ǁŝƚŚ • Dƌ͘WĂƉŚŽŶDE'<,>d,E 7KH'LUHFWRUVo5HVSRQVLELOLWLHVLQ 5HVSHFWRIWKH)LQDQFLDO6WDWHPHQWV dŚĞŝƌĞĐƚŽƌƐĂƌĞƌĞƐƉŽŶƐŝďůĞĨŽƌĞŶƐƵƌŝŶŐƚŚĂƚƚŚĞĮŶĂŶĐŝĂů ƐƚĂƚĞŵĞŶƚƐĂƌĞƉƌŽƉĞƌůLJĚƌĂǁŶƵƉƐŽĂƐƚŽƉƌĞƐĞŶƚĨĂŝƌůLJ͕ŝŶ ĂůůŵĂƚĞƌŝĂůƌĞƐƉĞĐƚƐ͕ƚŚĞĮŶĂŶĐŝĂůƉŽƐŝƟŽŶŽĨƚŚĞŽŵƉĂŶLJ ĂƐ Ăƚ ϯϭ ĞĐĞŵďĞƌ ϮϬϭϵ ĂŶĚ ƚŚĞ ĮŶĂŶĐŝĂů ƉĞƌĨŽƌŵĂŶĐĞ ĂŶĚĐĂƐŚŇŽǁƐĨŽƌƚŚĞLJĞĂƌĞŶĚĞĚϯϭĞĐĞŵďĞƌϮϬϭϵŝŶ ĂĐĐŽƌĚĂŶĐĞ ǁŝƚŚ ƚŚĞ ĂŵďŽĚŝĂŶ /ŶƚĞƌŶĂƟŽŶĂů &ŝŶĂŶĐŝĂů ZĞƉŽƌƟŶŐ^ƚĂŶĚĂƌĚƐ;/&Z^Ϳ͘ /ŶƉƌĞƉĂƌŝŶŐƚŚĞƐĞĮŶĂŶĐŝĂůƐƚĂƚĞŵĞŶƚƐ͕ƚŚĞŝƌĞĐƚŽƌƐĂƌĞ ƌĞƋƵŝƌĞĚƚŽ͗ ŝͿ ĂĚŽƉƚĂƉƉƌŽƉƌŝĂƚĞĂĐĐŽƵŶƟŶŐƉŽůŝĐŝĞƐŝŶĂĐĐŽƌĚĂŶĐĞ ǁŝƚŚ/&Z^͕ǁŚŝĐŚĂƌĞƐƵƉƉŽƌƚĞĚďLJƌĞĂƐŽŶĂďůĞĂŶĚ ƉƌƵĚĞŶƚũƵĚŐĞŵĞŶƚƐĂŶĚĞƐƟŵĂƚĞƐĂŶĚƚŚĞŶĂƉƉůLJ ƚŚĞŵĐŽŶƐŝƐƚĞŶƚůLJ͖ ŝŝͿ ĐŽŵƉůLJǁŝƚŚƚŚĞĚŝƐĐůŽƐƵƌĞƌĞƋƵŝƌĞŵĞŶƚƐŽĨ/&Z^ Žƌ͕ŝĨƚŚĞƌĞŚĂǀĞďĞĞŶĂŶLJĚĞƉĂƌƚƵƌĞƐŝŶƚŚĞŝŶƚĞƌĞƐƚƐ ŽĨĨĂŝƌƉƌĞƐĞŶƚĂƟŽŶ͕ƚŚĞƐĞŚĂǀĞďĞĞŶĂƉƉƌŽƉƌŝĂƚĞůLJ ĚŝƐĐůŽƐĞĚ͕ĞdžƉůĂŝŶĞĚĂŶĚƋƵĂŶƟĮĞĚŝŶƚŚĞĮŶĂŶĐŝĂů ƐƚĂƚĞŵĞŶƚƐ͖ ŝŝŝͿ ŵĂŝŶƚĂŝŶĂĚĞƋƵĂƚĞĂĐĐŽƵŶƟŶŐƌĞĐŽƌĚƐƚŚĂƚĞŶĂďůĞ ƚŚĞŽŵƉĂŶLJƚŽƉƌĞƉĂƌĞĮŶĂŶĐŝĂůƐƚĂƚĞŵĞŶƚƐƵŶĚĞƌ /&Z^ĂŶĚĂŶĞīĞĐƟǀĞƐLJƐƚĞŵŽĨŝŶƚĞƌŶĂůĐŽŶƚƌŽůƐ͖ ŝǀͿ ƉƌĞƉĂƌĞ ƚŚĞ ĮŶĂŶĐŝĂů ƐƚĂƚĞŵĞŶƚƐ ŽŶ Ă ŐŽŝŶŐ ĐŽŶĐĞƌŶďĂƐŝƐƵŶůĞƐƐŝƚŝƐŝŶĂƉƉƌŽƉƌŝĂƚĞƚŽĂƐƐƵŵĞ ƚŚĂƚƚŚĞŽŵƉĂŶLJǁŝůůĐŽŶƟŶƵĞŽƉĞƌĂƟŽŶƐŝŶƚŚĞ Our Financial Statement Annual Report 2019 45 Independent Auditor’s Report To the Shareholders of Amret Plc. Our Opinion 2WKHU,QIRUPDWLRQ /Ŷ ŽƵƌ ŽƉŝŶŝŽŶ͕ ƚŚĞ ĮŶĂŶĐŝĂů ƐƚĂƚĞŵĞŶƚƐ ŽĨ ŵƌĞƚ WůĐ͘ DĂŶĂŐĞŵĞŶƚŝƐƌĞƐƉŽŶƐŝďůĞĨŽƌƚŚĞŽƚŚĞƌŝŶĨŽƌŵĂƟŽŶ͘dŚĞ ;͞ƚŚĞ ŽŵƉĂŶLJ͟Ϳ ƉƌĞƐĞŶƚ ĨĂŝƌůLJ͕ ŝŶ Ăůů ŵĂƚĞƌŝĂů ƌĞƐƉĞĐƚƐ͕ ŽƚŚĞƌ ŝŶĨŽƌŵĂƟŽŶ ŽďƚĂŝŶĞĚ Ăƚ ƚŚĞ ĚĂƚĞ ŽĨ ƚŚŝƐ ĂƵĚŝƚŽƌ͛Ɛ ƚŚĞĮŶĂŶĐŝĂůƉŽƐŝƟŽŶŽĨƚŚĞŽŵƉĂŶLJĂƐĂƚϯϭĞĐĞŵďĞƌ ƌĞƉŽƌƚ ĂƌĞ ƚŚĞ ĚŝƌĞĐƚŽƌƐ͛ ƌĞƉŽƌƚ ĂŶĚ ƚŚĞ ƐƵƉƉůĞŵĞŶƚĂƌLJ ϮϬϭϵĂŶĚŝƚƐĮŶĂŶĐŝĂůƉĞƌĨŽƌŵĂŶĐĞĂŶĚŝƚƐĐĂƐŚŇŽǁƐĨŽƌ ĮŶĂŶĐŝĂů ŝŶĨŽƌŵĂƟŽŶ ĂŶĚ ŽƚŚĞƌ ĚŝƐĐůŽƐƵƌĞƐ ƌĞƋƵŝƌĞĚ ďLJ ƚŚĞLJĞĂƌĞŶĚĞĚϯϭĞĐĞŵďĞƌϮϬϭϵŝŶĂĐĐŽƌĚĂŶĐĞǁŝƚŚƚŚĞ ƚŚĞEĂƟŽŶĂůĂŶŬŽĨĂŵďŽĚŝĂ͕ďƵƚĚŽĞƐŶŽƚŝŶĐůƵĚĞƚŚĞ ĂŵďŽĚŝĂŶ/ŶƚĞƌŶĂƟŽŶĂů&ŝŶĂŶĐŝĂůZĞƉŽƌƟŶŐ^ƚĂŶĚĂƌĚƐ͘ ĮŶĂŶĐŝĂůƐƚĂƚĞŵĞŶƚƐĂŶĚŽƵƌĂƵĚŝƚŽƌ͛ƐƌĞƉŽƌƚƚŚĞƌĞŽŶ͘ KƵƌ ŽƉŝŶŝŽŶ ŽŶ ƚŚĞ ĮŶĂŶĐŝĂů ƐƚĂƚĞŵĞŶƚƐ ĚŽĞƐ ŶŽƚ ĐŽǀĞƌ :KDW:HKDYH$XGLWHG ƚŚĞŽƚŚĞƌŝŶĨŽƌŵĂƟŽŶĂŶĚǁĞĚŽŶŽƚĞdžƉƌĞƐƐĂŶLJĨŽƌŵŽĨ ĂƐƐƵƌĂŶĐĞĐŽŶĐůƵƐŝŽŶƚŚĞƌĞŽŶ͘ dŚĞŽŵƉĂŶLJ͛ƐĮŶĂŶĐŝĂůƐƚĂƚĞŵĞŶƚƐĐŽŵƉƌŝƐĞ͗ /ŶĐŽŶŶĞĐƟŽŶǁŝƚŚŽƵƌĂƵĚŝƚŽĨƚŚĞĮŶĂŶĐŝĂůƐƚĂƚĞŵĞŶƚƐ͕ ŽƵƌ ƌĞƐƉŽŶƐŝďŝůŝƚLJ ŝƐ ƚŽ ƌĞĂĚ ƚŚĞ ŽƚŚĞƌ ŝŶĨŽƌŵĂƟŽŶ ĂŶĚ͕ ͻ ƐƚĂƚĞŵĞŶƚŽĨĮŶĂŶĐŝĂůƉŽƐŝƟŽŶĂƐĂƚϯϭĞĐĞŵďĞƌ ŝŶ ĚŽŝŶŐ ƐŽ͕ ĐŽŶƐŝĚĞƌ ǁŚĞƚŚĞƌ ƚŚĞ ŽƚŚĞƌ ŝŶĨŽƌŵĂƟŽŶ ŝƐ ϮϬϭϵ͖ ŵĂƚĞƌŝĂůůLJ ŝŶĐŽŶƐŝƐƚĞŶƚ ǁŝƚŚ ƚŚĞ ĮŶĂŶĐŝĂů ƐƚĂƚĞŵĞŶƚƐ Žƌ ͻ ƐƚĂƚĞŵĞŶƚŽĨƉƌŽĮƚŽƌůŽƐƐĂŶĚŽƚŚĞƌĐŽŵƉƌĞŚĞŶƐŝǀĞ ŽƵƌŬŶŽǁůĞĚŐĞŽďƚĂŝŶĞĚŝŶƚŚĞĂƵĚŝƚ͕ŽƌŽƚŚĞƌǁŝƐĞĂƉƉĞĂƌƐ ŝŶĐŽŵĞĨŽƌƚŚĞLJĞĂƌƚŚĞŶĞŶĚĞĚ͖ ƚŽďĞŵĂƚĞƌŝĂůůLJŵŝƐƐƚĂƚĞĚ͘ ͻ ƐƚĂƚĞŵĞŶƚŽĨ ĐŚĂŶŐĞƐŝŶ ĞƋƵŝƚLJ ĨŽƌƚŚĞLJĞĂƌƚŚĞŶ /Ĩ͕ ďĂƐĞĚ ŽŶ ƚŚĞ ǁŽƌŬ ǁĞ ŚĂǀĞ ƉĞƌĨŽƌŵĞĚ ŽŶ ƚŚĞ ŽƚŚĞƌ ĞŶĚĞĚ͖ ŝŶĨŽƌŵĂƟŽŶ ŽďƚĂŝŶĞĚ ƉƌŝŽƌ ƚŽ ƚŚĞ ĚĂƚĞ ŽĨ ƚŚŝƐ ĂƵĚŝƚŽƌ͛Ɛ ƌĞƉŽƌƚ͕ǁĞĐŽŶĐůƵĚĞƚŚĂƚƚŚĞƌĞŝƐĂŵĂƚĞƌŝĂůŵŝƐƐƚĂƚĞŵĞŶƚ ͻ ƐƚĂƚĞŵĞŶƚŽĨĐĂƐŚŇŽǁƐĨŽƌƚŚĞLJĞĂƌƚŚĞŶĞŶĚĞĚ͖ ŽĨƚŚŝƐŽƚŚĞƌŝŶĨŽƌŵĂƟŽŶ͕ǁĞĂƌĞƌĞƋƵŝƌĞĚƚŽƌĞƉŽƌƚƚŚĂƚ and ĨĂĐƚ͘tĞŚĂǀĞŶŽƚŚŝŶŐƚŽƌĞƉŽƌƚŝŶƚŚŝƐƌĞŐĂƌĚ͘ ͻ ŶŽƚĞƐƚŽƚŚĞĮŶĂŶĐŝĂůƐƚĂƚĞŵĞŶƚƐ͕ǁŚŝĐŚŝŶĐůƵĚĞĂ ƐƵŵŵĂƌLJŽĨƐŝŐŶŝĮĐĂŶƚĂĐĐŽƵŶƟŶŐƉŽůŝĐŝĞƐ͘ 5HVSRQVLELOLWLHVRI0DQDJHPHQWDQG 7KRVH&KDUJHGZLWK*RYHUQPDQFHIRU Basis for Opinion WKH)LQDFLDO6WDWHPHQWV tĞĐŽŶĚƵĐƚĞĚŽƵƌĂƵĚŝƚŝŶĂĐĐŽƌĚĂŶĐĞǁŝƚŚĂŵďŽĚŝĂŶ /ŶƚĞƌŶĂƟŽŶĂů ^ƚĂŶĚĂƌĚƐ ŽŶ ƵĚŝƟŶŐ ;/^ƐͿ͘ KƵƌ DĂŶĂŐĞŵĞŶƚ ŝƐ ƌĞƐƉŽŶƐŝďůĞ ĨŽƌ ƚŚĞ ƉƌĞƉĂƌĂƟŽŶ ĂŶĚ ĨĂŝƌ ƌĞƐƉŽŶƐŝďŝůŝƟĞƐ ƵŶĚĞƌ ƚŚŽƐĞ ƐƚĂŶĚĂƌĚƐ ĂƌĞ ĨƵƌƚŚĞƌ ƉƌĞƐĞŶƚĂƟŽŶ ŽĨ ƚŚĞ ĮŶĂŶĐŝĂů ƐƚĂƚĞŵĞŶƚƐ ŝŶ ĂĐĐŽƌĚĂŶĐĞ ĚĞƐĐƌŝďĞĚŝŶƚŚĞƵĚŝƚŽƌ͛ƐƌĞƐƉŽŶƐŝďŝůŝƟĞƐĨŽƌƚŚĞĂƵĚŝƚŽĨ ǁŝƚŚ ƚŚĞ ĂŵďŽĚŝĂŶ /ŶƚĞƌŶĂƟŽŶĂů &ŝŶĂŶĐŝĂů ZĞƉŽƌƟŶŐ ƚŚĞĮŶĂŶĐŝĂůƐƚĂƚĞŵĞŶƚƐƐĞĐƟŽŶŽĨŽƵƌƌĞƉŽƌƚ͘ ^ƚĂŶĚĂƌĚƐ͕ĂŶĚĨŽƌƐƵĐŚŝŶƚĞƌŶĂůĐŽŶƚƌŽůĂƐŵĂŶĂŐĞŵĞŶƚ ĚĞƚĞƌŵŝŶĞƐ ŝƐ ŶĞĐĞƐƐĂƌLJ ƚŽ ĞŶĂďůĞ ƚŚĞ ƉƌĞƉĂƌĂƟŽŶ tĞ ďĞůŝĞǀĞ ƚŚĂƚ ƚŚĞ ĂƵĚŝƚ ĞǀŝĚĞŶĐĞ ǁĞ ŚĂǀĞ ŽďƚĂŝŶĞĚ ŽĨ ĮŶĂŶĐŝĂů ƐƚĂƚĞŵĞŶƚƐ ƚŚĂƚ ĂƌĞ ĨƌĞĞ ĨƌŽŵ ŵĂƚĞƌŝĂů ŝƐ ƐƵĸĐŝĞŶƚ ĂŶĚ ĂƉƉƌŽƉƌŝĂƚĞ ƚŽ ƉƌŽǀŝĚĞ Ă ďĂƐŝƐ ĨŽƌ ŽƵƌ ŵŝƐƐƚĂƚĞŵĞŶƚ͕ǁŚĞƚŚĞƌĚƵĞƚŽĨƌĂƵĚŽƌĞƌƌŽƌ͘ ŽƉŝŶŝŽŶ͘ /Ŷ ƉƌĞƉĂƌŝŶŐ ƚŚĞ ĮŶĂŶĐŝĂů ƐƚĂƚĞŵĞŶƚƐ͕ ŵĂŶĂŐĞŵĞŶƚ ŝƐ ƌĞƐƉŽŶƐŝďůĞĨŽƌĂƐƐĞƐƐŝŶŐƚŚĞŽŵƉĂŶLJ͛ƐĂďŝůŝƚLJƚŽĐŽŶƟŶƵĞ ,QGHSHQGHQFH ĂƐ Ă ŐŽŝŶŐ ĐŽŶĐĞƌŶ͕ ĚŝƐĐůŽƐŝŶŐ͕ ĂƐ ĂƉƉůŝĐĂďůĞ͕ ŵĂƩĞƌƐ ƌĞůĂƚĞĚ ƚŽ ŐŽŝŶŐ ĐŽŶĐĞƌŶ ĂŶĚ ƵƐŝŶŐ ƚŚĞ ŐŽŝŶŐ ĐŽŶĐĞƌŶ tĞĂƌĞŝŶĚĞƉĞŶĚĞŶƚŽĨƚŚĞŽŵƉĂŶLJŝŶĂĐĐŽƌĚĂŶĐĞǁŝƚŚ ďĂƐŝƐŽĨĂĐĐŽƵŶƟŶŐƵŶůĞƐƐŵĂŶĂŐĞŵĞŶƚĞŝƚŚĞƌŝŶƚĞŶĚƐƚŽ ƚŚĞ/ŶƚĞƌŶĂƟŽŶĂů ƚŚŝĐƐ^ƚĂŶĚĂƌĚƐŽĂƌĚĨŽƌĐĐŽƵŶƚĂŶƚƐ͛ ůŝƋƵŝĚĂƚĞƚŚĞŽŵƉĂŶLJŽƌƚŽĐĞĂƐĞŽƉĞƌĂƟŽŶƐ͕ŽƌŚĂƐŶŽ ŽĚĞŽĨ ƚŚŝĐƐĨŽƌWƌŽĨĞƐƐŝŽŶĂůĐĐŽƵŶƚĂŶƚƐ;/ ^ŽĚĞͿ ƌĞĂůŝƐƟĐĂůƚĞƌŶĂƟǀĞďƵƚƚŽĚŽƐŽ͘ ĂŶĚƚŚĞƌĞƋƵŝƌĞŵĞŶƚƐŽĨ<ĂŵƉƵĐŚĞĂ/ŶƐƟƚƵƚĞŽĨĞƌƟĮĞĚ dŚŽƐĞ ĐŚĂƌŐĞĚ ǁŝƚŚ ŐŽǀĞƌŶĂŶĐĞ ĂƌĞ ƌĞƐƉŽŶƐŝďůĞ ĨŽƌ WƵďůŝĐ ĐĐŽƵŶƚĂŶƚƐ ĂŶĚ ƵĚŝƚŽƌƐ͛ ŽĚĞ ŽĨ ƚŚŝĐƐ ĨŽƌ ŽǀĞƌƐĞĞŝŶŐƚŚĞŽŵƉĂŶLJ͛ƐĮŶĂŶĐŝĂůƌĞƉŽƌƟŶŐƉƌŽĐĞƐƐ͘ ĞƌƟĮĞĚWƵďůŝĐĐĐŽƵŶƚĂŶƚƐĂŶĚƵĚŝƚŽƌƐ; 46 Our Financial Statements Annual Report 2019 ĚŝƐĐůŽƐƵƌĞƐ͕ĂŶĚǁŚĞƚŚĞƌƚŚĞĮŶĂŶĐŝĂůƐƚĂƚĞŵĞŶƚƐ $XGLWRUoV5HVSRQVLELOLWLHVIRUWKH ƌĞƉƌĞƐĞŶƚ ƚŚĞ ƵŶĚĞƌůLJŝŶŐ ƚƌĂŶƐĂĐƟŽŶƐ ĂŶĚ ĞǀĞŶƚƐ $XGLWRIWKH)LQDQFLDO6WDWHPHQWV ŝŶĂŵĂŶŶĞƌƚŚĂƚĂĐŚŝĞǀĞƐĨĂŝƌƉƌĞƐĞŶƚĂƟŽŶ͘ tĞ ĐŽŵŵƵŶŝĐĂƚĞ ǁŝƚŚ ƚŚŽƐĞ ĐŚĂƌŐĞĚ ǁŝƚŚ ŐŽǀĞƌŶĂŶĐĞ ƌĞŐĂƌĚŝŶŐ͕ĂŵŽŶŐŽƚŚĞƌŵĂƩĞƌƐ͕ƚŚĞƉůĂŶŶĞĚƐĐŽƉĞĂŶĚ KƵƌŽďũĞĐƟǀĞƐĂƌĞƚŽŽďƚĂŝŶƌĞĂƐŽŶĂďůĞĂƐƐƵƌĂŶĐĞĂďŽƵƚ ƟŵŝŶŐŽĨƚŚĞĂƵĚŝƚĂŶĚƐŝŐŶŝĮĐĂŶƚĂƵĚŝƚĮŶĚŝŶŐƐ͕ŝŶĐůƵĚŝŶŐ ǁŚĞƚŚĞƌƚŚĞĮŶĂŶĐŝĂůƐƚĂƚĞŵĞŶƚƐĂƐĂǁŚŽůĞĂƌĞĨƌĞĞĨƌŽŵ ĂŶLJ ƐŝŐŶŝĮĐĂŶƚ ĚĞĮĐŝĞŶĐŝĞƐ ŝŶ ŝŶƚĞƌŶĂů ĐŽŶƚƌŽů ƚŚĂƚ ǁĞ ŵĂƚĞƌŝĂů ŵŝƐƐƚĂƚĞŵĞŶƚ͕ ǁŚĞƚŚĞƌ ĚƵĞ ƚŽ ĨƌĂƵĚ Žƌ ĞƌƌŽƌ͕ ŝĚĞŶƟĨLJĚƵƌŝŶŐŽƵƌĂƵĚŝƚ͘ ĂŶĚƚŽŝƐƐƵĞĂŶĂƵĚŝƚŽƌ͛ƐƌĞƉŽƌƚƚŚĂƚŝŶĐůƵĚĞƐŽƵƌŽƉŝŶŝŽŶ͘ ZĞĂƐŽŶĂďůĞĂƐƐƵƌĂŶĐĞŝƐĂŚŝŐŚůĞǀĞůŽĨĂƐƐƵƌĂŶĐĞ͕ďƵƚŝƐ ŶŽƚ Ă ŐƵĂƌĂŶƚĞĞ ƚŚĂƚ ĂŶ ĂƵĚŝƚ ĐŽŶĚƵĐƚĞĚ ŝŶ ĂĐĐŽƌĚĂŶĐĞ ǁŝƚŚ /^Ɛ ǁŝůů ĂůǁĂLJƐ ĚĞƚĞĐƚ Ă ŵĂƚĞƌŝĂů ŵŝƐƐƚĂƚĞŵĞŶƚ ǁŚĞŶ ŝƚ ĞdžŝƐƚƐ͘ DŝƐƐƚĂƚĞŵĞŶƚƐ ĐĂŶ ĂƌŝƐĞ ĨƌŽŵ ĨƌĂƵĚ Žƌ ĞƌƌŽƌĂŶĚĂƌĞĐŽŶƐŝĚĞƌĞĚŵĂƚĞƌŝĂůŝĨ͕ŝŶĚŝǀŝĚƵĂůůLJŽƌŝŶƚŚĞ ĂŐŐƌĞŐĂƚĞ͕ƚŚĞLJĐŽƵůĚƌĞĂƐŽŶĂďůLJďĞĞdžƉĞĐƚĞĚƚŽŝŶŇƵĞŶĐĞ ƚŚĞ ĞĐŽŶŽŵŝĐ ĚĞĐŝƐŝŽŶƐ ŽĨ ƵƐĞƌƐ ƚĂŬĞŶ ŽŶ ƚŚĞ ďĂƐŝƐ ŽĨ ƚŚĞƐĞĮŶĂŶĐŝĂůƐƚĂƚĞŵĞŶƚƐ͘ ƐƉĂƌƚŽĨĂŶĂƵĚŝƚŝŶĂĐĐŽƌĚĂŶĐĞǁŝƚŚ/^Ɛ͕ǁĞĞdžĞƌĐŝƐĞ ƉƌŽĨĞƐƐŝŽŶĂů ũƵĚŐŵĞŶƚ ĂŶĚ ŵĂŝŶƚĂŝŶ ƉƌŽĨĞƐƐŝŽŶĂů ƐĐĞƉƟĐŝƐŵƚŚƌŽƵŐŚŽƵƚƚŚĞĂƵĚŝƚ͘tĞĂůƐŽ͗ ͻ /ĚĞŶƟĨLJ ĂŶĚ ĂƐƐĞƐƐ ƚŚĞ ƌŝƐŬƐ ŽĨ ŵĂƚĞƌŝĂů ŵŝƐƐƚĂƚĞŵĞŶƚŽĨƚŚĞĮŶĂŶĐŝĂůƐƚĂƚĞŵĞŶƚƐ͕ǁŚĞƚŚĞƌ ĚƵĞ ƚŽ ĨƌĂƵĚ Žƌ ĞƌƌŽƌ͕ ĚĞƐŝŐŶ ĂŶĚ ƉĞƌĨŽƌŵ ĂƵĚŝƚ ƉƌŽĐĞĚƵƌĞƐ ƌĞƐƉŽŶƐŝǀĞ ƚŽ ƚŚŽƐĞ ƌŝƐŬƐ͕ ĂŶĚ ŽďƚĂŝŶ ĂƵĚŝƚ ĞǀŝĚĞŶĐĞ ƚŚĂƚ ŝƐ ƐƵĸĐŝĞŶƚ ĂŶĚ ĂƉƉƌŽƉƌŝĂƚĞ ƚŽƉƌŽǀŝĚĞĂďĂƐŝƐĨŽƌŽƵƌŽƉŝŶŝŽŶ͘dŚĞƌŝƐŬŽĨŶŽƚ ĚĞƚĞĐƟŶŐ Ă ŵĂƚĞƌŝĂů ŵŝƐƐƚĂƚĞŵĞŶƚ ƌĞƐƵůƟŶŐ ĨƌŽŵ ĨƌĂƵĚ ŝƐ ŚŝŐŚĞƌ ƚŚĂŶ ĨŽƌ ŽŶĞ ƌĞƐƵůƟŶŐ ĨƌŽŵ ĞƌƌŽƌ͕ ĂƐĨƌĂƵĚŵĂLJŝŶǀŽůǀĞĐŽůůƵƐŝŽŶ͕ĨŽƌŐĞƌLJ͕ŝŶƚĞŶƟŽŶĂů ŽŵŝƐƐŝŽŶƐ͕ ŵŝƐƌĞƉƌĞƐĞŶƚĂƟŽŶƐ͕ Žƌ ƚŚĞ ŽǀĞƌƌŝĚĞ ŽĨ ŝŶƚĞƌŶĂůĐŽŶƚƌŽů͘ ͻ KďƚĂŝŶĂŶƵŶĚĞƌƐƚĂŶĚŝŶŐŽĨŝŶƚĞƌŶĂůĐŽŶƚƌŽůƌĞůĞǀĂŶƚ ƚŽ ƚŚĞ ĂƵĚŝƚ ŝŶ ŽƌĚĞƌ ƚŽ ĚĞƐŝŐŶ ĂƵĚŝƚ ƉƌŽĐĞĚƵƌĞƐ ƚŚĂƚĂƌĞĂƉƉƌŽƉƌŝĂƚĞŝŶƚŚĞĐŝƌĐƵŵƐƚĂŶĐĞƐ͕ďƵƚŶŽƚ ĨŽƌ ƚŚĞ ƉƵƌƉŽƐĞ ŽĨ ĞdžƉƌĞƐƐŝŶŐ ĂŶ ŽƉŝŶŝŽŶ ŽŶ ƚŚĞ ĞīĞĐƟǀĞŶĞƐƐŽĨƚŚĞŽŵƉĂŶLJ͛ƐŝŶƚĞƌŶĂůĐŽŶƚƌŽů͘ ͻ ǀĂůƵĂƚĞ ƚŚĞ ĂƉƉƌŽƉƌŝĂƚĞŶĞƐƐ ŽĨ ĂĐĐŽƵŶƟŶŐ ƉŽůŝĐŝĞƐƵƐĞĚĂŶĚƚŚĞƌĞĂƐŽŶĂďůĞŶĞƐƐŽĨĂĐĐŽƵŶƟŶŐ ĞƐƟŵĂƚĞƐ ĂŶĚ ƌĞůĂƚĞĚ ĚŝƐĐůŽƐƵƌĞƐ ŵĂĚĞ ďLJ ŵĂŶĂŐĞŵĞŶƚ͘ ͻ ŽŶĐůƵĚĞŽŶƚŚĞĂƉƉƌŽƉƌŝĂƚĞŶĞƐƐŽĨŵĂŶĂŐĞŵĞŶƚ͛Ɛ ƵƐĞŽĨƚŚĞŐŽŝŶŐĐŽŶĐĞƌŶďĂƐŝƐŽĨĂĐĐŽƵŶƟŶŐĂŶĚ͕ ďĂƐĞĚ ŽŶ ƚŚĞ ĂƵĚŝƚ ĞǀŝĚĞŶĐĞ ŽďƚĂŝŶĞĚ͕ ǁŚĞƚŚĞƌ Ă ŵĂƚĞƌŝĂů ƵŶĐĞƌƚĂŝŶƚLJ ĞdžŝƐƚƐ ƌĞůĂƚĞĚ ƚŽ ĞǀĞŶƚƐ Žƌ ĐŽŶĚŝƟŽŶƐƚŚĂƚŵĂLJĐĂƐƚƐŝŐŶŝĮĐĂŶƚĚŽƵďƚŽŶƚŚĞ ŽŵƉĂŶLJ͛ƐĂďŝůŝƚLJƚŽĐŽŶƟŶƵĞĂƐĂŐŽŝŶŐĐŽŶĐĞƌŶ͘ /Ĩ ǁĞ ĐŽŶĐůƵĚĞ ƚŚĂƚ Ă ŵĂƚĞƌŝĂů ƵŶĐĞƌƚĂŝŶƚLJ ĞdžŝƐƚƐ͕ ǁĞĂƌĞƌĞƋƵŝƌĞĚƚŽĚƌĂǁĂƩĞŶƟŽŶŝŶŽƵƌĂƵĚŝƚŽƌ͛Ɛ ƌĞƉŽƌƚ ƚŽ ƚŚĞ ƌĞůĂƚĞĚ ĚŝƐĐůŽƐƵƌĞƐ ŝŶ ƚŚĞ ĮŶĂŶĐŝĂů ƐƚĂƚĞŵĞŶƚƐŽƌ͕ŝĨƐƵĐŚĚŝƐĐůŽƐƵƌĞƐĂƌĞŝŶĂĚĞƋƵĂƚĞ͕ ƚŽŵŽĚŝĨLJŽƵƌŽƉŝŶŝŽŶ͘KƵƌĐŽŶĐůƵƐŝŽŶƐĂƌĞďĂƐĞĚ ŽŶƚŚĞĂƵĚŝƚĞǀŝĚĞŶĐĞŽďƚĂŝŶĞĚƵƉƚŽƚŚĞĚĂƚĞŽĨ ŽƵƌ ĂƵĚŝƚŽƌ͛Ɛ ƌĞƉŽƌƚ͘ ,ŽǁĞǀĞƌ͕ ĨƵƚƵƌĞ ĞǀĞŶƚƐ Žƌ ĐŽŶĚŝƟŽŶƐ ŵĂLJ ĐĂƵƐĞ ƚŚĞ ŽŵƉĂŶLJ ƚŽ ĐĞĂƐĞ ƚŽ ĐŽŶƟŶƵĞĂƐĂŐŽŝŶŐĐŽŶĐĞƌŶ͘ ͻ ǀĂůƵĂƚĞ ƚŚĞ ŽǀĞƌĂůů ƉƌĞƐĞŶƚĂƟŽŶ͕ ƐƚƌƵĐƚƵƌĞ ĂŶĚ ĐŽŶƚĞŶƚŽĨƚŚĞĮŶĂŶĐŝĂůƐƚĂƚĞŵĞŶƚƐ͕ŝŶĐůƵĚŝŶŐƚŚĞ Our Financial Statement Annual Report 2019 47 Statement of Financial Postion as at 31 December 2019 2019 2018 .+5o 86 .+5o 86 $66(76 ĂƐŚŽŶŚĂŶĚ 196,512,296 48,223,876 182,408,107 45,397,737 ĞƉŽƐŝƚƐĂŶĚƉůĂĐĞŵĞŶƚƐǁŝƚŚĐĞŶƚƌĂů 228,114,390 55,978,991 329,389,181 81,978,393 ďĂŶŬĂŶĚŽƚŚĞƌďĂŶŬƐ &ŝŶĂŶĐŝĂůĂƐƐĞƚƐĂƚĨĂŝƌǀĂůƵĞƚŚƌŽƵŐŚ 4,760,084 1,168,119 1,247,924 310,583 ŽƚŚĞƌĐŽŵƉƌĞŚĞŶƐŝǀĞŝŶĐŽŵĞ >ŽĂŶƐĂŶĚĂĚǀĂŶĐĞƐĂƚĂŵŽƌƟƐĞĚĐŽƐƚ 3,961,612,173 972,174,766 3,143,863,584 782,444,894 ^ƚĂƚƵƚŽƌLJĚĞƉŽƐŝƚƐǁŝƚŚĐĞŶƚƌĂůďĂŶŬ 183,914,415 45,132,372 154,345,864 38,413,605 ZŝŐŚƚͲŽĨͲƵƐĞĂƐƐĞƚƐ 68,265,450 16,752,258 73,631,627 18,325,442 WƌŽƉĞƌƚLJĂŶĚĞƋƵŝƉŵĞŶƚ 17,010,481 4,174,351 18,362,906 4,570,161 /ŶƚĂŶŐŝďůĞĂƐƐĞƚƐ 7,739,142 1,899,176 6,793,820 1,690,846 ĞĨĞƌƌĞĚƚĂdžĂƐƐĞƚƐ 10,847,009 2,661,843 11,288,628 2,809,514 KƚŚĞƌĂƐƐĞƚƐ 8,962,043 2,199,274 4,566,116 1,136,416 727$/$66(76 /,$%,/,7,(6$1'(48,7< /,$%,/,7,(6 ĞƉŽƐŝƚƐĨƌŽŵĐƵƐƚŽŵĞƌƐ 2,207,279,453 541,663,669 1,847,727,829 459,862,576 ĂŶŬŽǀĞƌĚƌĂŌƐ - - 1,455,257 362,184 ŽƌƌŽǁŝŶŐƐ 1,485,953,597 364,651,189 1,301,640,539 323,952,349 ^ƵďŽƌĚŝŶĂƚĞĚĚĞďƚƐ 161,879,840 39,725,114 49,920,326 12,424,173 >ĞĂƐĞůŝĂďŝůŝƟĞƐ 63,769,923 15,649,061 66,235,941 16,484,804 ŵƉůŽLJĞĞďĞŶĞĮƚƐ 24,987,434 6,131,886 40,967,326 10,195,950 ƵƌƌĞŶƚŝŶĐŽŵĞƚĂdžůŝĂďŝůŝƟĞƐ 29,828,271 7,319,821 23,916,882 5,952,435 KƚŚĞƌůŝĂďŝůŝƟĞƐ 6,312,314 1,549,034 7,503,661 1,867,511 727$//,$%,/,7,(6 3,980,010,832 976,689,774 3,339,367,761 831,101,982 (48,7< ^ŚĂƌĞĐĂƉŝƚĂů 120,002,320 29,448,422 120,002,320 29,866,182 ^ŚĂƌĞƉƌĞŵŝƵŵ - - - - ZĞƐĞƌǀĞƐ 380,544,972 92,742,572 180,641,903 45,201,078 ZĞƚĂŝŶĞĚĞĂƌŶŝŶŐƐ 207,179,359 51,484,258 285,885,773 70,908,349 727$/(48,7< 707,726,651 173,675,252 586,529,996 145,975,609 727$//,$%,/,7,(6$1'(48,7< 48 Our Financial Statements Annual Report 2019 6WDWHPHQWRI3URƬWRU/RVVDQG2WKHU&RPSUHKHQVLYH,QFRPH for the year ended 31 December 2019 2019 2018 .+5o 86 .+5o 86 /ŶƚĞƌĞƐƚŝŶĐŽŵĞ 590,604,216 145,756,223 520,759,773 128,741,600 /ŶƚĞƌĞƐƚĞdžƉĞŶƐĞƐ (231,057,660) (57,023,115) (198,338,195) (49,032,928) Net interest income 359,546,556 88,733,108 322,421,578 79,708,672 &ĞĞĂŶĚĐŽŵŵŝƐƐŝŽŶŝŶĐŽŵĞ 10,944,599 2,701,036 9,237,411 2,283,662 &ĞĞĂŶĚĐŽŵŵŝƐƐŝŽŶĞdžƉĞŶƐĞ (2,226,481) (549,477) (2,321,738) (573,977) 1HWIHHDQGFRPPLVVLRQLQFRPH 8,718,118 2,151,559 6,915,673 1,709,685 ƌĞĚŝƚŝŵƉĂŝƌŵĞŶƚůŽƐƐĞƐ (1,256,829) (310,175) (4,491,638) (1,110,417) KƚŚĞƌŽƉĞƌĂƟŶŐŝŶĐŽŵĞ 3,887,399 959,378 3,201,128 791,379 EĞƚĨŽƌĞŝŐŶĞdžĐŚĂŶŐĞŐĂŝŶͬ;ůŽƐƐĞƐͿ 3,824,542 943,865 (1,842,169) (455,419) Net other operating income 6,455,112 1,593,068 (3,132,679) (774,457) WĞƌƐŽŶŶĞůĞdžƉĞŶƐĞƐ (132,828,363) (32,780,939) (122,665,612) (30,325,244) KƚŚĞƌĞdžƉĞŶƐĞƐ (47,186,584) (11,645,258) (45,551,904) (11,261,287) ĞƉƌĞĐŝĂƟŽŶĂŶĚĂŵŽƌƟƐĂƟŽŶĐŚĂƌŐĞƐ (19,442,362) (4,798,213) (16,650,407) (4,116,293) KƚŚĞƌŽƉĞƌĂƟŶŐĞdžƉĞŶƐĞƐ (218,380) (53,894) (32,642) (8,069) 2SHUDWLQJSURƬW 175,044,097 43,199,431 141,304,007 34,933,007 /ŶĐŽŵĞƚĂdžĞdžƉĞŶƐĞƐ (35,838,426) (8,844,626) (31,067,179) (7,680,390) 3URƬWIRUWKH\HDU 139,205,671 34,354,805 110,236,828 27,252,617 2WKHUFRPSUHKHQVLYHLQFRPH /ƚĞŵƐƚŚĂƚǁŝůůŶŽƚďĞƌĞĐůĂƐƐŝĮĞĚƚŽƉƌŽĮƚŽƌůŽƐƐ ƵƌƌĞŶĐLJƚƌĂŶƐůĂƟŽŶĚŝīĞƌĞŶĐĞƐ - (885,610) - 242,913 2WKHUFRPSUHKHQVLYHLQFRPHIRUWKH\HDU - (885,610) - 242,913 7RWDOFRPSUHKHQVLYHLQFRPHIRUWKH\HDU 139,205,671 33,469,195 110,236,828 27,495,530 3URƬWIRUWKH\HDUDWWULEXWDEOHWR KǁŶĞƌƐŽĨƚŚĞĐŽŵƉĂŶLJ 7RWDOFRPSUHKHQVLYHLQFRPHDWWULEXWDEOH WR KǁŶĞƌƐŽĨƚŚĞĐŽŵƉĂŶLJ Our Financial Statement Annual Report 2019 49 ------86 487,281 242,913 (885,610) (1,325,076) ------7RWDO .+5o - - 110,236,828 27,252,617 - - (22,125,279) (5,469,785) - 139,205,671 34,354,805 - (18,009,016) (4,444,476) 86 296,213 (46,667) (8,370,648) (2,073,482) 242,913 110,236,828 27,495,530 242,913 (885,610) (885,610) 139,205,671 33,469,195 (907,316) ------5HVHUYHV .+5o - - - - - 86 - - - - - 5HWDLQHGHDUQLQJV .+5o - 285,885,773 70,908,349 180,641,903 45,201,078 586,529,996 145,975,609 - 110,236,828 27,252,617 - (8,370,648)-- (2,026,815) 110,236,828 27,252,617 -- (21,425,948)- (126,542,000) (5,287,746)- (31,283,560) (6,077,231) 21,425,948 (22,125,279) 126,542,000 (1,502,406) (5,469,785) 5,287,746 31,283,560 6,077,231- 1,502,406 - 139,205,671- 34,354,805 139,205,671-- (180,000,000) 34,354,805 - (11,504,709) (44,422,507)- (8,398,360) 180,000,000 (2,839,267) (18,009,016) (2,072,646) 11,504,709 44,422,507 (4,444,476) 8,398,360 2,839,267 2,072,646 - (103,087,365) (25,485,133) - 86 (2,712) ------ 6KDUHSUHPLXP .+5o ------86 $WWULEXWDEOHWRWKHRZQHUVRIWKH&RPSDQ\ 193,780 ------(417,760) 6KDUH&DSLWDO .+5o 5,535,835 1,368,562 (5,535,835) (1,368,562) 11,379,120 2,818,707 5,535,835 1,371,274 463,277,416 114,711,177 26,596,724 6,634,907 506,789,095 125,536,065 11,379,120 2,818,707 5,535,835 1,371,274 454,906,768 112,684,362 26,596,724 6,588,240 498,418,447 123,462,583 120,002,320 29,866,182 103,087,365 25,485,133 Statement of Changes in (TXLW\ Statement 2019 the year ended 31 December for )RUWKH\HDUHQGHG'HFHPEHU %DODQFHDW-DQXDU\DVSUHYLRXVO\UHSRUWHG )RUWKH\HDUHQGHG'HFHPEHU %DODQFHDW -DQXDU\ 7UDQVDFWLRQZLWKRZQHULQWKHLUFDSDFLW\DVRZQHUV dƌĂŶƐĨĞƌĨƌŽŵƐŚĂƌĞƉƌĞŵŝƵŵ 5HVWDWHGEDODQFHDW-DQXDU\ 7UDQVDFWLRQZLWKRZQHULQWKHLUFDSDFLW\DVRZQHUV 7RWDOFRPSUHKHQVLYHLQFRPHIRUWKH\HDU $VDW'HFHPEHU $VDW'HFHPEHU īĞĐƚŽĨƚƌĂŶƐŝƟŽŶƚŽ/&Z^ WƌŽĮƚĨŽƌƚŚĞLJĞĂƌ KƚŚĞƌĐŽƉƌĞŚĞŶƐŝǀĞŝŶĐŽŵĞ dƌĂŶƐĨĞƌĨƌŽŵƌĞƚĂŝŶĞĚĞĂƌŶŝŶŐ dƌĂŶƐĨĞƌƚŽƌĞŐƵůĂƚŽƌLJƌĞƐĞƌǀĞ dƌĂŶƐĨĞƌƚŽŶŽŶͲĚŝƐƚƌŝďƵƚĞĂďůĞƌĞƐĞƌǀĞƐ dƌĂŶƐĨĞƌƚŽƌĞƐĞƌǀĞƐ ŝǀŝĚĞŶĚƐƉĂŝĚĚƵƌŝŶŐƚŚĞLJĞĂƌ ƵƌƌĞŶĐLJƚƌĂŶƐůĂƟŽŶĚŝīĞƌĞŶĐĞƐ WƌŽĮƚĨŽƌƚŚĞLJĞĂƌ KƚŚĞƌĐŽŵƉƌĞŚĞŶƐŝǀĞŝŶĐŽŵĞ 7RWDOFRPSUHKHQVLYHLQFRPHIRUWKH\HDU dƌĂŶƐĨĞƌƚŽŶŽŶͲĚŝƐƚƌŝďƵƚĂďůĞƌĞƐĞƌǀĞƐ dƌĂŶƐĨĞƌƚŽƌĞŐƵůĂƚŽƌLJƌĞƐĞƌǀĞ dƌĂŶƐĨĞƌƚŽƌĞƐĞƌǀĞ ŝǀŝĚĞŶĚƐƉĂŝĚĚƵƌŝŶŐƚŚĞLJĞĂƌ ƵƌƌĞŶĐLJƚƌĂŶƐůĂƟŽŶĚŝīĞƌĞŶĐĞƐ 50 Our Financial Statements Annual Report 2019 Statement of Cash )ORZV for the year ended 31 December 2019 2019 2018 . + 5 o 86 .+5o 86 &DVKƮRZVIURPRSHUDWLQJDFWLYLWLHV EĞƚĐĂƐŚŐĞŶĞƌĂƚĞĚĨƌŽŵͬ;ƵƐĞĚŝŶͿ ŽƉĞƌĂƟŶŐĂĐƟǀŝƟĞƐ (314,294,057) (77,565,168) 140,330,905 34,692,436 &DVKƮRZVIURPLQYHVWLQJDFWLYLWLHV ĂƉŝƚĂůŐƵĂƌĂŶƚĞĞĚĞƉŽƐŝƚǁŝƚŚƚŚĞ ĞŶƚƌĂůĂŶŬ - - (5,423,770) (1,340,858) WƵƌĐŚĂƐĞƐŽĨƉƌŽƉĞƌƚLJĂŶĚĞƋƵŝƉŵĞŶƚ (4,445,210) (1,097,041) (7,705,888) (1,905,040) WƵƌĐŚĂƐĞƐŽĨŝŶƚĂŶŐŝďůĞĂƐƐĞƚƐ (2,365,495) (583,785) (1,868,756) (461,992) WƌŽĐĞĞĚƐĨƌŽŵĚŝƐƉŽƐĂůƐŽĨ ƉƌŽƉĞƌƚLJĂŶĚĞƋƵŝƉŵĞŶƚ 50,183 12,385 413,418 102,205 WĂLJŵĞŶƚĨŽƌŝŶǀĞƐƚŵĞŶƚƐ (3,474,736) (857,536) - - EĞƚĐĂƐŚƵƐĞĚŝŶŝŶǀĞƐƟŶŐĂĐƟǀŝƟĞƐ (10,235,258) (2,525,977) (14,584,996) (3,605,685) &DVKƮRZVIURPƬQDQFLQJDFWLYLWLHV WƌŝŶĐŝƉůĞĞůĞŵĞŶƚŽĨůĞĂƐĞƉĂLJŵĞŶƚ (9,506,297) (2,346,075) (12,832,488) (3,172,432) WƌŽĐĞĞĚƐĨƌŽŵďŽƌƌŽǁŝŶŐƐ 509,275,623 125,685,001 582,545,688 144,016,239 ZĞƉĂLJŵĞŶƚƐŽĨďŽƌƌŽǁŝŶŐƐ (351,545,936) (86,758,622) (424,885,096) (105,039,579) WƌŽĐĞĞĚƐĨƌŽŵƐƵďŽƌĚŝŶĂƚĞĚĚĞďƚƐ 113,456,000 28,000,000 - - ZĞƉĂLJŵĞŶƚƐŽĨƐƵďŽƌĚŝŶĂƚĞĚĚĞďƚƐ (5,065,000) (1,250,000) - - ŝǀŝĚĞŶĚƐƉĂŝĚ (18,009,016) (4,444,476) (22,125,279) (5,469,785) EĞƚĐĂƐŚŐĞŶĞƌĂƚĞĚ ĨƌŽŵĮŶĂŶĐŝŶŐĂĐƟǀŝƟĞƐ 238,605,374 58,885,828 122,702,825 30,334,443 1HWLQFUHDVHLQFDVKDQGFDVKHTXLYDOHQWV (85,923,941) (21,205,317) 248,448,734 61,421,194 ĂƐŚĂŶĚĐĂƐŚĞƋƵŝǀĂůĞŶƚƐ ĂƚƚŚĞďĞŐŝŶŶŝŶŐŽĨƚŚĞLJĞĂƌ 510,680,336 127,098,142 262,231,602 64,957,048 ƵƌƌĞŶĐLJƚƌĂŶƐůĂƟŽŶĚŝīĞƌĞŶĐĞƐ - (1,658,127) - 719,900 &DVKDQGFDVKHTXLYDOHQWVDWWKHHQGRI WKH\HDU Our Financial Statement Annual Report 2019 51 %UDQFK1HWZRUN 5HJLRQDO0DS Nepal Ta iwan Bhutan China Bangladesh India South Myanmar China Laos Sea Thailand Philippines Vietnam Bay of Bengal Cambodia Sri Lanka Andaman Sea Brunei Malaysia Singapore Indian Ocean Indonesia Operating Data &DPERGLD0DS LAOS THAILAND OTDAR MEANCHEY STUNG TRENG RATTANA KIRI BANTEAY PREAH VIHEAR MEANCHEY SIEM REAP BATTAMBANG PAILIN MONDUL KIRI 197 197 197 KAMPONG THOM KRATIE 158 PURSAT 156 KAMPONG KAMPONG CHAM CHHNANG 155 TBONG KHMUM 25 25 25 1,355 PHNOM PENH KAMPONG KOH KONG SPEU PREY VENG KANDAL VIETNAM SVAY RIENG North 2017 2018 2019 Gulf of Thailand TAKEO KAMPOT SIHANOUKVILLE ƌĂŶĐŚĞƐ KƉĞƌĂƟŶŐŝƐƚƌŝĐƚƐ KƉĞƌĂƟŶŐWƌŽǀŝŶĐĞƐ KEP 52 Our Contact 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