1HLJKERXUKRRG3ROLFLQJXSGDWH 3UH6FKRRO 7KHUHKDVEHHQDQLQFUHDVHLQELNHWKHIWVRYHUWKHSDVWPRQWK ,W¶VWKHVXPPHUWHUPDQGZHKDYH :KHQFKRRVLQJDORFNORRNIRURQHWKDWLVJROGDSSURYHGZKLFK EHHQHQMR\LQJWKHORYHO\ZHDWKHU ZLOOJLYH\RXPD[LPXPSURWHFWLRQDJDLQVWWKHIW5HPRYHVPDOOHU ZLWKRXWVLGHZDWHUDFWLYLWLHVDQG LWHPVLQFOXGLQJOLJKWVDQGF\FOLQJFRPSXWHUVDQGHQVXUH JDPHV7KHUHDUHPDQ\QHZ TXLFNUHOHDVHZKHHOVDUHDOVRVHFXUHG VWDUWHUVWKLVWHUP,W¶VDOVRWKHODVW WHUPIRUPDQ\RIRXUFKLOGUHQZKR :HKDYHUHFHQWO\VHHQDQLQFUHDVHLQWKHIWVIURPYHKLFOHV,WHPVVWROHQ ZLOOEHVWDUWLQJVFKRROLQ6HSWHPEHU KDYHLQFOXGHGZRUNWRROVODSWRSVPRELOHSKRQHVDQGPRQH\7KLHYHVDUH DQGZHZLOOEHSUHSDULQJWKHPIRU XVLQJHYHUPRUHVRSKLVWLFDWHGPHDQVWRWDUJHWYHKLFOHVODSWRSVDQG WKLVWUDQVLWLRQ PRELOHSKRQHVFDQEHORFDWHGYLD%OXHWRRWKHYHQLIKLGGHQIURPYLHZ :KHUHYHUSRVVLEOHPDNHVXUH\RXWDNH\RXUYDOXDEOHVZLWK\RXZKHQ\RX $UHPLQGHUWKDWWKH7HGG\%HDUV¶ OHDYH\RXUYHKLFOHWRGHWHURSSRUWXQLVWLFWKLHYHV 3LFQLFZLOOEHKHOGRQ7XHVGD\ -XQHIURPWRSPRQ0LOO :HDUHVHHLQJDQHPHUJLQJSDWWHUQRIERWKROGHUDQGQHZPRGHO/DQG *UHHQ0RUHGHWDLOVRQSDJH 5RYHU'HIHQGHUVEHLQJWDUJHWHGE\FULPLQDOV,QPDQ\FDVHVWKHYHKLFOHV DUHEHLQJµVWULSSHG¶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²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± &UD]LHV+LOO&RFNSROH*UHHQ )HVWLYDO ± *DUGHQHUV¶&OXE *LUOJXLGLQJ ,Q%XVLQHVV .LOQ*UHHQQHZV 3KRWRJUDSKV /LEUDU\ERRNFOXEV /RFDO+LVWRU\6RFLHW\ 2XUIURQWFRYHUSKRWRJUDSKVKRZVWKH)HVWLYDOWLFNHWGD\TXHXH:H 3ROLFHXSGDWH ZHOFRPHKLJKUHVROXWLRQSKRWRJUDSKVIRUWKHFRYHU3OHDVHVHQGSRUWUDLW 3RS,Q&OXE RULHQWDWLRQLPDJHVWRHGLWRU#ZDUJUDYHQHZVFRXN 3UH6FKRRO 5R\DO%ULWLVK/HJLRQ 6FKRROYROXQWHHUVQHHGHG 6SRUW :DUJUDYH1HZV±FRS\GDWH 7UDLQQHZV 9LOODJHVSULQJFOHDQ 7KH-XQHFRS\GDWHLV7KXUVGD\-XQHDWSP GLVWULEXWHG :RPHQ¶V&OXE -XQH 3OHDVHVHQGDUWLFOHVDQGOHWWHUVWRHGLWRU#ZDUJUDYHQHZVFRXN :,QHZV 3 *:5¶6UHSO\WRRXU03 +%8*QHZV *:5¶V&(20DUN+RSZRRGKDV :KDWDUHWKHNQRFNRQ $V3KLOLS0HDGRZFURIWKDVSRLQWHG UHSOLHGWR7KHUHVD0D\¶VQR FRQVHTXHQFHVRIKROGLQJEDFN RXWWKHQHZWLPHWDEOHWKDWFRPHV QRQVHQVHUHTXHVWIRUFUHGLEOH GHSDUWXUHVDW7Z\IRUG" LQWRHIIHFWRQ0D\LQWURGXFHVDQ DVVXUDQFHVDERXW*:5¶V 0U+RSZRRGZULWHVµ,WGRHVKDYH KRXUO\VHUYLFHIRU:DUJUDYH SXQFWXDOLW\,DPDIUDLGKLVUHSO\LV WKHSRWHQWLDOWRLPSDFWRQODWHU EHWZHHQDPDQGSPRQ ERWKDEVXUGDQGXQZRUWK\$V VHUYLFHV,QVRPHFDVHVWKLVFRXOG ZHHNGD\VDQGWKURXJKRXWWKHGD\ :8**(55LFKDUG:LOVRQVRDSWO\ OHDGWRDVHUYLFHEHLQJFDQFHOOHGWR DWWKHZHHNHQGV:HVKDUH3KLOLS¶V SXWLWµ+HGRHVQ¶WOLVWHQ¶ EULQJWKH%UDQFK/LQHEDFNLQOLQH FRQFHUQDERXW*:5¶VDELOLW\WR ZLWKPDLQOLQHFRQQHFWLRQV¶ RSHUDWHWKHEUDQFKWLPHWDEOHWR %XWEHIRUH,JLYH\RXVSHFLILF :8*UHDFWLRQ6XFKFDQFHOODWLRQV VFKHGXOHDQGXUJHDOOXVHUVWR H[DPSOHVRIWKLVIURPKLVUHSO\WR ZRXOGEHGLVDVWHURXVIRUWKRVH UHSRUWPLVVHGFRQQHFWLRQVWRKHOS 7KHUHVD0D\,ZDQWWRUHSRUW ZDLWLQJDW:DUJUDYHH[SHFWLQJD XVKLJKOLJKWSUREOHPV7KHUHDUHQR :8**(5:LOO5RZVRQ¶VKHOSIXO VFKHGXOHGVHUYLFHIRU7Z\IRUGDQG FKDQJHVWRWKHWKURXJKWUDLQVLQWKH FRQWULEXWLRQWRWKH:8*FDXVH+H RQWR3DGGLQJWRQRU5HDGLQJRU PRUQLQJEXWWKHUHDUHVRPH WRRNWKLVSKRWRJUDSKDW3DGGLQJWRQ IXUWKHU VLJQLILFDQWFKDQJHVLQWKHHYHQLQJ 6WDWLRQRQ$SULO:LOOKDGIRXQG VHUYLFHZKLFKZLOOKDSSHQLQWZR WKDWWKHRQHWLFNHWVHOOHURQWKH 0U+RSZRRGWKHQDGGVµ7KLVPLJKW VWDJHV DPWUDLQIURP:DUJUDYHZDV PHDQDGGLQJDQH[WUDVWRSDW RYHUZKHOPHGDQGWKHUHZDVMXVW :DUJUDYHRQWKHQH[WVHUYLFHRU 7KHZLOOGHSDUWDW SURYLGLQJ SDVVHQJHUVZLOOEHDEOHWR URDG GHSDUWDWDQGFKDQJHDW WUDQVSRUW,I 0DLGHQKHDG WKHODWWHU 7KHWKURXJKWUDLQZLOOFHDVH WKLVZRXOG WRUXQIURP-XQHWREH EHSURYLGHG UHSODFHGE\DQHZFRQQHFWLQJ IUHHRI WUDLQWKDWZLOOGHSDUW3DGGLQJWRQ FKDUJHERWK DUULYLQJ:DUJUDYHDW IURP 7Z\IRUGDQG :DUJUDYH¶ 7KHWKURXJKWUDLQZLOO RQH¶IDUHVWRSD\¶ZLQGRZDW FRQWLQXHWRUXQEXWZLOODUULYHDW 3DGGLQJWRQ*:5¶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¶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µ:HKDYHD ZHHNHQGDVZHOO,WLVVFKHGXOHGWR FRQWLQJHQF\SODQWRVWRSWKHQH[W VWDUWRQ6XQGD\0D\DQGLI\RX WUDLQDW:DUJUDYH¶ PDQDJHWRJHWKROGRIDWLPHWDEOH ,I\RXZDQWWREHNHSWDZDUHRIWKH :8*UHDFWLRQ:KRLQ*:5LV EHIRUHKDQGWKLQN\RXUVHOIOXFN\ ODWHVWQHZVRQLVVXHVDIIHFWLQJ JRLQJWRPDQDJHWKLV±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±ZHHGLQJDQG 7KDQN\RX &RI(,QIDQWDQG5REHUW3LJJRWW SODQWLQJ &RI(-XQLRU6FKRROV SDLQWLQJWKHHQWUDQFHJDWHV