$OELRQV6HHG)RXU%ULWLVK)RONZD\VLQ$PHULFD%\'DYLG+DFNHWW)LVKHU1HZ<RUN2[IRUG8QLYHUVLW\

3UHVV
,WLVGLIILFXOWWRGLVFXVVWKHODQGPDUNZRUN$OELRQV6HHGZLWKRXWEHFRPLQJH[WUDYDJDQWLQSUDLVLQJ
LW7KHERRNLVDQH[DPSOHRIPHWDKLVWRU\DWLWVEHVWQRWRQO\RIIHULQJFRPSHOOLQJKLVWRULFDODUJXPHQWVEXW
DOVRSUHVHQWLQJDVZHHSLQJSDUDGLJPIRUXQGHUVWDQGLQJ$PHULFDVFRORQLDORULJLQVDQGLWVVXEVHTXHQW
GHYHORSPHQW'DYLG+DFNHWW)LVKHU%UDQGHLV8QLYHUVLW\V(DUO:DUUHQ3URIHVVRURI+LVWRU\WUDFHVWKH
PLJUDWLRQRIFXOWXUHVIURPIRXUGLVWLQFWUHJLRQVRIWKH%ULWLVK,VOHVDQGH[SODLQVKRZHDFKLPSDUWHGLWVRZQ
GLVWLQFWLYHFKDUDFWHUWRWKHSRUWLRQRI$PHULFDWKH\PDGHWKHLURZQ
)LVKHULGHQWLILHVIRXUGLVWLQFW%ULWLVKIRONZD\VGHILQLQJDIRONZD\DVWKHQRUPDWLYHVWUXFWXUHRI
YDOXHVFXVWRPVDQGPHDQLQJVWKDWH[LVWLQDQ\FXOWXUH7KRURXJKO\GLVVHFWLQJWKHVHXVLQJGLIIHUHQW
IDFWRUVUDQJLQJIURPGUHVVDQGVSHHFKWRLGHDVRIPDUULDJHDQGFKLOGUHDULQJWRWKHRORJ\KHFKDUDFWHUL]HV
HDFK%ULWLVKVXEFXOWXUHDQGGHPRQVWUDWHVLWVFRQWLQXDWLRQLQWKHSDUWRIWKHFRORQLHVWKDWVXEFXOWXUH
GRPLQDWHG)URP)LVKHUVGHVFULSWLRQVRIWKHVHIRXUIRONZD\VKLVWKHVLVEHJLQVWRWDNHVKDSHWRDQ\RQHZLWK
DQDGHTXDWHNQRZOHGJHRIFRORQLDOKLVWRU\HYHQEHIRUH)LVKHUH[SUHVVO\GHPRQVWUDWHVWKHFRQWLQXDWLRQ
1HZ(QJODQGZDVFKLHIO\VHWWOHGE\3XULWDQVIURP(DVW$QJOLDDUHJLRQPDUNHGE\DVWXUG\DQGKDUG
ZRUNLQJPLGGOHFODVVZKRH[FHOOHGDWDJULFXOWXUHDQGDYDULHW\RIFUDIWVDVZHOODVE\LWVVRFLDOO\DQG
SROLWLFDOO\FRQWHQWLRXVUHODWLRQVKLSZLWKWKH&URZQ9LUJLQLDVVHWWOHUVZHUHSULPDULO\LQGHQWXUHGVHUYDQWV
DQGGLVWUHVVHGFDYDOLHUVKDLOLQJIURPVRXWKHUQ(QJODQGDQ$QJOLFDQDQG5R\DOLVWEDVWLRQDQGD
UHJLRQZKRVHODQGVFDSHVLQFH6D[RQWLPHVZDVGRPLQDWHGE\ODUJHPDQRUVDQGHVWDWHV7RWKH'HODZDUH
5LYHU9DOOH\FDPH4XDNHUVIURP(QJODQGV1RUWK0LGODQGVPLGGOLQJIDUPHUVZKRIRUDPLOOHQQLDKDG
EHHQWUHDWHGDVDQRSSUHVVHGUHJLRQDOXQGHUFODVVE\%ULWDLQVYDULRXVFRQTXHURUV7KHSHUVHFXWHG
4XDNHUVKDGUHDFKHGDVWDJHLQWKHLUVRFLHW\LQZKLFKWKH\IDYRUHGWROHUDQFHUHDVRQPRGHUDWLRQDQG
SROLWLFDOHQJDJHPHQW:HDVVRFLDWHWKHFRORQLDOEDFNFRXQWU\ZLWKWKH6FRWV,ULVK)LVKHU
PDUNVLWDVVHWWOHGE\%ULWLVK%RUGHUHUVDGLYHUVHDQGPL[HGJURXSIURP6FRWODQG,UHODQGDQGQRUWKHUQ
(QJODQGZKRZHUHUHODWLYHO\SRRU\HWILHUFHO\SURXGDQGLQGHSHQGHQW$VFKXUFKPHPEQHUVWKH\ZHUH
WKHRORJLFDO1HZ/LJKWVDVIDPLO\PHPEHUVFODQQLVKDQGDV%ULWRQVKLVWRULFDOO\YLROHQWZKHWKHULQ
%ULWDLQVPDQ\G\QDVWLFVWUXJJOHVRULQWKHSUDFWLFHRIUHLYLQJDJULFXOWXUDOUDLGLQJDORQJWKH$QJOR6FRW
ERUGHU
)LVKHUVHYLGHQFHLVFRQVLGHUDEOHLQERWKTXDQWLW\DQGTXDOLW\,QWKHXVHRIVRXUFHVKHLVHTXDOO\DW
KRPHZLWKRULJLQDOPDQXVFULSWVDQGVHFRQGDU\ZRUNV3DUWLFXODUO\LPSUHVVLYHLVKLVFDWDORJXLQJRIWKH
IRONZD\VKHLGHQWLILHVZKLFKLQFOXGHVXFKIHDWXUHVDVGLDOHFWDQGDUFKLWHFWXUHZKLFKVRRIWHQHVFDSH
KLVWRULDQVQRWLFH3HUKDSVRQHRIWKHEHVWFRPSOLPHQWVWKDWFDQEHSDLGWR)LVKHULVWKDWKHPDNHVVNLOOIXO
XVHRILQIRUPDWLRQXVXDOO\KDQGOHGE\VRFLRORJLVWVDQGDQWKURSRORJLVWVEXWGHOLYHUVLWLQWKHSURVHRIZHOO
ZULWWHQKLVWRU\$OELRQV6HHGLVDOVRSURIXVHO\LOOXVWUDWHGZLWKPDSVFKDUWVDQGFRQWHPSRUDU\UHQGHULQJVRI
SHULRGLPDJHVDOORIZKLFK)LVKHUKDQGLO\LQFRUSRUDWHV7KHSRSXODWLRQPDSVLQSDUWLFXODUKHOSPDNHKLV
FDVHIRUWKHFRQWLQXDWLRQRIVSHFLILFUHJLRQDOFXOWXUHVLQWKHFRORQLHV
$OELRQV6HHGUHSUHVHQWVDQH[WUDRUGLQDU\IUDPHZRUNIRUXQGHUVWDQGLQJHDUO\$PHULFD\HWLURQLFDOO\
LWUHSUHVHQWVWKHUHZRUNLQJRIDYHU\ROGKLVWRULRJUDSKLFDOLGHDWKHJHUPWKHRU\ZKLFKHPSKDVL]HGWKH
FRQWLQXDQFHRI(XURSHDQWUDGLWLRQVDQGLGHDOVLQWKHIRUPDWLRQRI$PHULFD)UHGHULFN-DFNVRQ7XUQHU
IDPRXVO\UHMHFWHGWKHJHUPWKHRU\ZLWKKLVIURQWLHUWKHVLVZKLOH)LVKHULQWXUQXVHVKLVSDUDGLJPRI
GRPLQDQW%ULWLVKVXEFXOWXUHVWRFKDOOHQJHWKHIURQWLHUWKHVLV2QHRI)LVKHUVPRVWXVHIXOFRQWULEXWLRQVLVKLV
FKDUDFWHUL]DWLRQRIGLIIHULQJFRQFHSWVRIIUHHGRPDVRQHRIWKHIRONZD\VKHDQDO\]HV,QFRORQLDO$PHULFD
HDFKUHJLRQDOFXOWXUH1HZ(QJODQGRUGHUHGOLEHUW\9LUJLQLD7LGHZDWHU6RXWKKHJHPRQLFOLEHUW\WKH
'HODZDUH9DOOH\UHFLSURFDOOLEHUW\DQGWKHEDFNFRXQWU\QDWXUDOOLEHUW\HPSKDVL]HGGLIIHUHQWYLVLRQVRI
OLEHUW\EXWVKDUHGMHDORXVJXDUGLDQVKLSRIWKRVHOLEHUWLHV

$PRQJWKHIHZIODZVLQ$OELRQV6HHGLVWKDW)LVKHUVXFFXPEVWRWKHWHPSWDWLRQRIRYHUH[WHQGLQJ
KRZIDUKLVWKHVLVFDQEHVWUHWFKHGLQLWVDSSOLFDWLRQWR$PHULFDQKLVWRU\DVDZKROH)LVKHULVRQILUP
JURXQGZKHQKHDUJXHVKRZWKRURXJKO\KLVIRXU%ULWLVKIRONZD\VVKDSHGWKHFXOWXUDOPDSRI$PHULFDDQG
WKDWWKHVHGLVWLQFWLYHFXOWXUHVKDYHLQGHHGDODVWLQJHIIHFWWRWKLVGD\)LVKHUKRZHYHULVUHOXFWDQWWRDGPLWWKH
H[WHQWWRZKLFKKLVSDUDGLJPEUHDNVGRZQDV$PHULFDPRYHVFKURQRORJLFDOO\IXUWKHUIURPWKHFRORQLDO
SHULRGDQGH[SHULHQFHVQHZZDYHVRIHPLJUDWLRQ3HUKDSVKLVIXUWKHVWEULGJHVWRRIDUDUHKLVGLVFXVVLRQRI
SUHVLGHQWLDOHOHFWLRQVDOOWKHZD\WRDQGKLVVSHFXODWLRQVDERXWGLIIHULQJFULPHUDWHVIURPUHJLRQWR
UHJLRQ)LVKHUEULHIO\GLVFXVVHVQRQ%ULWLVKFXOWXUHVLPSDFWRQ$PHULFDEXWKLVFRORQLDOFRYHUDJHDUJXDEO\
JLYHVWRRVKRUWVKULIWWR*HUPDQpPLJUpVWKRXJKKHGRHVOXPSLQ*HUPDQ3LHWLVWVZLWK3HQQV\OYDQLDV
4XDNHUV
)LVKHUV$OELRQV6HHGQRWRQO\RIIHUVFRPSHOOLQJDUJXPHQWVIRUWKHKLVWRULDQWRFRQVLGHUEXWLV
HPLQHQWO\XVHIXODVZHOO7KHWKHVLVUHSUHVHQWVDUHPDUNDEOHSDUDGLJPIRUXQGHUVWDQGLQJUHJLRQDO
GLIIHUHQFHVLQFRORQLDO$PHULFD7KDWDQG)LVKHUVVWUDLJKWIRUZDUGFKDUDFWHUL]DWLRQVRIWKRVHFRORQLDO
UHJLRQVHQVXUHWKDWDQLQVWUXFWRUFRXOGHDVLO\OHFWXUHRQFRORQLDOKLVWRU\ZLWKVWURQJUHOLDQFHRQ$OELRQV
6HHG7KHRUJDQL]DWLRQRIWKHERRNGLYLGHGDQGVXEGLYLGHGDVLWPDNHVLWVLJQLILFDQWO\XVHIXODVDUHIHUHQFH
ZRUNHVSHFLDOO\IRUWKHVFKRODUFRQFHQWUDWLQJRQDSDUWLFXODUFRORQLDOUHJLRQ7RJHWKHUVXFKIDFWRUVPDNH
$OELRQV6HHGDQHVVHQWLDODQGWUXO\IDVFLQDWLQJFRQWULEXWLRQWR$PHULFDQKLVWRULRJUDSK\
-RQDWKDQ6WHSO\N

$OELRQV6HHG)RXU%ULWLVK)RONZD\VLQ$PHULFD%\'DYLG+DFNHWW)LVFKHU1HZ<RUN2[IRUG
8QLYHUVLW\3UHVVSDJHV
,QWKHSUHIDFHWR$OELRQV6HHG)RXU%ULWLVK)RONZD\VLQ$PHULFD%UDQGHLV8QLYHUVLW\KLVWRULDQ
'DYLG+DFNHWW)LVFKHUWRXWVKLVZRUNDVWKHILUVWLQDVHULHVWKDWZLOOKRSHIXOO\FRPSULVHDFXOWXUDOKLVWRU\
RIWKH8QLWHG6WDWHVSYLL:ULWLQJLQ)LVFKHUVWDWHVWKDWILYHVXFKYROXPHVLQWKDWVHULHVDUHQRZ
LQGUDIWSYLL7RGDWHKRZHYHURQO\RQHRWKHUVXFKYROXPHKDVVHHQSULQWQDPHO\/LEHUW\DQG
)UHHGRP$9LVXDO+LVWRU\RI$PHULFDV)RXQGLQJ,GHDOVSXEOLVKHGLQDV9ROXPH7KUHHLQWKHVHULHV
HYHQWKRXJK9ROXPH7ZRLVSXUSRUWHGO\VWLOOLQGUDIW2EYLRXVO\)LVFKHUVJUDQGVFKHPHZDVRYHUO\
DPELWLRXVDQGLOOFRQFHLYHG$QG$OELRQV6HHGLOOXVWUDWHVZK\WKHSURMHFWKDVVSXWWHUHGDORQJLQILWVDQG
VWDUWV)UDQNO\)LVFKHUVKRXOGKDYHFXWKLVORVVHVDQGJRQHKRPHEDFNLQ
%XW$OELRQV6HHGLVQRWSRRUO\ZULWWHQ,QGHHG)LVFKHUVOXFLGLW\DQGZLWDOORZVWKHUHDGHUWRSORZ
WKURXJKDOOSDJHVZLWKRXWXQGXHH[KDXVWLRQ6WLOOWKHHIIHFWLVOLNHZDWFKLQJDORXV\IRRWEDOOWHDPWKDW
ZHDUVVKDUSXQLIRUPVZLWKDWOHDVWKHZULWHVZHOOVXEVWLWXWLQJIRUDWOHDVWWKH\ORRNJRRG
$QG)LVFKHUVWULYHVPLJKWLO\WRPDNHKLVWKHVLVWKDWWKHOHJDF\RIIRXU%ULWLVKIRONZD\VLQHDUO\
$PHULFDUHPDLQVWKHPRVWSRZHUIXOGHWHUPLQDQWRIDYROXQWDU\VRFLHW\LQWKH8QLWHG6WDWHVWRGD\S
ORRNJRRG&RPELQLQJWKHLQWHUSUHWLYHWKUXVWRIWKHROGKLVWRU\ZLWKWKHHPSLULFLVPRIWKHQHZS[KH
HPSOR\VDSOHWKRUDRISULPDU\DQGVHFRQGDU\VRXUFHVVWDWLVWLFVDQGDQHFGRWHVWRGHVFULEHLQH[FUXFLDWLQJ
GHWDLOWKHGLVWLQFWIRONZD\VRIIRXUFXOWXUHKHDUWKVWKDWKHFODLPVKDYHGRPLQDWHG$PHULFDQKLVWRU\IURP
FRORQLDOWLPHV
7KHILUVWVXFKFXOWXUHKHDUWKZDVFUHDWHGE\DQH[RGXVRI3XULWDQVIURPWKHHDVWRI(QJODQGWR
0DVVDFKXVHWWVIURPWRS7KHVHFRQGLQYROYHGWKHPLJUDWLRQRIDVPDOO5R\DOLVWHOLWH
DQGODUJHQXPEHUVRILQGHQWXUHGVHUYDQWVIURPWKHVRXWKRI(QJODQGWR9LUJLQLDSEHWZHHQDQG
7KHWKLUGUHVXOWHGIURPDZDYHRI4XDNHULPPLJUDQWVIURPWKH1RUWK0LGODQGVRI(QJODQGDQG
:DOHVWRWKH'HODZDUH9DOOH\SEHWZHHQDQG)LQDOO\WKHIRXUWKFXOWXUHKHDUWKFDPH

IURPDIORZRI(QJOLVKVSHDNLQJSHRSOHIURPWKHERUGHUVRI1RUWK%ULWDLQDQGQRUWKHUQ,UHODQGWRWKH
$SSDODFKLDQEDFNFRXQWU\PRVWO\GXULQJWKHKDOIFHQWXU\IURPWRS
%HVLGHVGHVFULELQJKRZHDFKRIWKHIRXUJURXSVVSRNHGUHVVHGDWHZRUVKLSSHGKDGVH[DQG
RUJDQL]HGWKHLUIDPLOLHVDQGFRPPXQLWLHV)LVFKHUDVVHUWVWKDWWKH\IRVWHUHGDWOHDVWIRXUGLIIHUHQWLGHDVRI
OLEHUW\SWKDWWRJHWKHUFUHDWHGDFXOWXUHRIIUHHGRPZKLFKLVPRUHRSHQDQGH[SDQVLYHWKDQDQ\
XQLWDU\WUDGLWLRQDORQHFRXOGSRVVLEO\EHS6LQFH$PHULFDQOLEHUW\KDVQHYHUEHHQDVLQJOH
LGHDEXWDVHWRIGLIIHUHQWDQGHYHQFRQWUDU\WUDGLWLRQVLQFUHDWLYHWHQVLRQZLWKRQHDQRWKHUS
)LVFKHUFRQFOXGHVWKDWWKHGLYHUVLW\RIOLEHUWDULDQLGHDVFUHDWHGE\KLVIRXUFXOWXUHKHDUWKVKDVEHFRPH
WKHPRVWSRZHUIXOGHWHUPLQDQWRIDYROXQWDU\VRFLHW\LQWKH8QLWHG6WDWHVS6SHFLILFDOO\)LVFKHU
FUHGLWV0DVVDFKXVHWWV3XULWDQVIRUWKHLUFRQFHSWRIRUGHUHGIUHHGRP9LUJLQLD&DYDOLHUVIRUWKHLUQRWLRQRI
KHJHPRQLFIUHHGRP'HODZDUH9DOOH\4XDNHUVIRUUHFLSURFDOIUHHGRPDQGEDFNFRXQWU\VHWWOHUVIRU
QDWXUDOIUHHGRPSS
)LVFKHUVDQDO\VLVRIWKHVHGLIIHUHQWFRQFHSWLRQVRIOLEHUW\LVWKHPRVWLQWULJXLQJDVSHFWRIKLVZRUN
DQG\HWLWJHWVVXUSULVLQJO\VKRUWVKULIWIUHHGRPZD\VSLVRQO\RQHRIVHSDUDWHIRONZD\VWKDW
KHVSHQGVKXQGUHGVRISDJHVGHVFULELQJIRUHDFKRIKLVIRXUJURXSV5HJUHWWDEO\WKHFRORURIWKHFORWKHV
WKDWWKH3XULWDQVZRUHDQGWKHW\SLFDOEUHDNIDVWIDUHRI4XDNHUVVKDUHVQHDUHTXDOWLPHZLWKWKHZHLJKW\
UXPLQDWLRQVRIWKRVHJURXSVRQKXPDQIUHHGRP6XUHO\)LVFKHUVFRQWHQWLRQWKDW)UDQNOLQ5RRVHYHOWV
)RXU)UHHGRPVHPDQDWHGIURPWKH3XULWDQVEHOLHIWKDWRUGHUHGOLEHUW\LQFOXGHGWKHREOLJDWLRQWRWR
SURWHFWLQGLYLGXDOPHPEHUV>RIVRFLHW\@IURPWKHW\UDQQ\RIFLUFXPVWDQFHSLVPRUHLQWHUHVWLQJDQG
LPSRUWDQWWKDQ)LVFKHUVFODLPWKDWWKHVDGFRORUVRIWKH3XULWDQVVXUYLYHLQWKHRIILFLDOFXOWXUHRI1HZ
(QJODQGVLQFH+DUYDUGVRIILFLDOFRORULVDGUHDU\RIISXUSOHHXSKHPLVWLFDOO\FDOOHGFULPVRQS
%XW)LVFKHULVVRKHOOEHQWRQGHPRQVWUDWLQJWKHVXUYLYDOVRIKLVIRXUFXOWXUHKHDUWKVWKDWKHORVHVDOO
VHQVHRIIRFXVDQGSHUVSHFWLYH
)RUH[DPSOHKLVFODLPWKDWHYHU\SUHVLGHQWLDOHOHFWLRQLQKLVWRU\VKRZVWKHSHUVLVWHQWSRZHULQ
$PHULFDQSROLWLFVSRIKLVIRXUSHWJURXSVLVSDUWLFXODUO\ZHDN:KLOH(OHFWRUDO&ROOHJHPDSVRIWKH
ODVWWZRSUHVLGHQWLDOHOHFWLRQVVKRZWKDWUHJLRQDOYRWLQJSDWWHUQVDUHDVVWURQJDVHYHUWKHFXUUHQW5HG
6WDWH%OXH6WDWHGLYLGHVLPSO\FDQQRWEHH[SODLQHGE\WKHSHUVLVWHQWSRZHURIWKHIRXUFXOWXUHKHDUWKV
FUHDWHGE\WKH3XULWDQV&DYDOLHUV4XDNHUVDQG%DFNZRRGVPHQRI\RUH
,QVXPE\WU\LQJWRSURYHWRRPXFKLQ$OELRQV6HHG)LVFKHUSURYHVYHU\OLWWOH
-RH5]HSSD


$OELRQV6HHG)RXU%ULWLVK)RONZD\VLQ$PHULFD%\'DYLG+DFNHWW)LVFKHUW2[IRUG8QLYHUVLW\3UHVV

,QKLVZRUN$OELRQV6HHG'DYLG+DFNHWW)LVFKHUDVVXPHVWKHPRQVWURXVWDVNRIGHWHUPLQLQJVLPLODULWLHV
EHWZHHQFXVWRPVLQYDULRXV(QJOLVKUHJLRQVDQGFXVWRPVLPPLJUDQWVEURXJKWZLWKWKHPXSRQVHWWOLQJLQWKH
1HZ:RUOG)LVFKHUVDLPLVWRGHPRQVWUDWHQRWRQO\UHJLRQDOPLJUDWRU\SDWWHUQVEXWDOVRERQGVW\LQJ
$PHULFDQFXOWXUHWR(QJODQG:KDWUHVXOWVLVDPDVVLYHZRUNWKDWGHFRQVWUXFWVFRORQLDOVRFLHW\SURYLGLQJ
GHWDLOHGJOLPSVHVLQWR(QJOLVKFRORQLHV
)LVFKHUEHJLQVE\GHVFULELQJWKHWHUPIRONZD\7R)LVFKHUDIRONZD\LVWKHQRUPDWLYHVWUXFWXUHRI
YDOXHVFXVWRPVDQGPHDQLQJVWKDWH[LVWLQDQ\FXOWXUH0RUHVLPSO\IRONZD\VDUHDVSHFWVRIVRFLHW\

PDGHZKROHRUKRZDFXOWXUHVSHDNVGUHVVHVSUDFWLFHVUHOLJLRQZRUNVSOD\VHWF7R)LVFKHUIRXUDUHDV
RI%ULWLVKVHWWOHPHQWLQ1RUWK$PHULFD0DVVDFKXVHWWV'HODZDUH9LUJLQLDDQGWKH%DFNFRXQWU\VKDUHD
IRONZD\RUGLVWLQFWFXOWXUDODVSHFWVZLWKIRXUFRUUHVSRQGLQJUHJLRQVLQ(QJODQGRU(DVW$QJOLD1RUWK
0LGODQGV6RXWK(QJODQGDQGWKH(QJOLVKERUGHUODQGVUHVSHFWLYHO\7KHIRXUPDLQSDUWVRI)LVFKHUVZRUN
GHVFULEHLQGHWDLOWKHVHIRONZD\V
)LVFKHUEHJLQVE\GHVFULELQJ0DVVDFKXVHWWVDQGLWVVLPLODULWLHVWR(DVW$QJOLD$FFRUGLQJWRWKHDXWKRU
LQKDELWDQWVRI(DVW$QJOLDODUJHO\VXEVFULEHGWRWKH3XULWDQIDLWKDUHOLJLRXVZD\RIOLIH0DVVDFKXVHWWVV
VHWWOHUVEURXJKWZLWKWKHPWR1RUWK$PHULFD/LNHWKH3XULWDQ(DVW$QJOLFDQVLQKDELWDQWVRI0DVVDFKXVHWWV
GUHVVHGLQVDGGFRORXUVSXUSOHWDZQ\HWFEHOLHYHGLQEUHDNLQJFKLOGUHQVZLOOVDQGVWUXFWXUHGVRFLHW\
DURXQGVWULFWFRGHVRIEHKDYLRU
)LVFKHUGHPRQVWUDWHVVLPLODULWLHVDVZHOOEHWZHHQWKHFRORQLDOLQKDELWDQWVRI9LUJLQLDDQG6RXWK(QJODQG
7KHHOLWHPHQZKRVHWWOHGLQ9LUJLQLDWHQGHGWREHWKHVHFRQGVRQVIURP6RXWKHUQ(QJODQGZKR
MRXUQH\HGWR$PHULFDLQRUGHUWRWDNHDGYDQWDJHRIIUHHODQGDQGSRWHQWLDOZHDOWK7KHVHHOLWHVRQV
PLJUDWHGDVZHOOGXHWR(QJOLVKSROLWLFDOHYHQWVQDPHO\WKH(QJOLVK&LYLOZDUUHVXOWHGLQD3XULWDQ
FRPPRQZHDOWKDQGUR\DOLVWHOLWHVHVFDSHGWR1RUWK$PHULFD/LNH6RXWKHUQ(QJOLVKPHQLQKDELWDQWVLQ
9LUJLQLDVKDUHGVRFLDOFXVWRPVVXFKDVQDPLQJFKLOGUHQZHUHQDPHGDIWHUZDUULRUVDQGGUHVV

7KRVHPLJUDWLQJWR'HODZDUHVKDUHGFXOWXUDODVSHFWVZLWKWKH(QJOLVK1RUWK0LGODQGV)LVFKHUDVVHUWVWKDW
ERWKUHJLRQVWHQGHGWREH4XDNHUDQGUHMHFWHGWKHFRQFHSWWKDWFKLOGUHQZHUHERUQZLWKVLQ7KH
VDPHNLQGVRISDWWHUQVHPHUJHZKHQ)LVFKHUFRPSDUHVWKHEDFNFRXQWU\$SSDODFKLDQUHJLRQWRWKH(QJOLVK
ERUGHUODQGV6SHHFKSDWWHUQVDQGRWKHUFXOWXUDODVSHFWVSURYHVLPLODU
)LVFKHUVFRQFOXGLQJFKDSWHUDWWHPSWVWRDSSO\WKRVHIRONZD\VWKHDXWKRUHVWDEOLVKHVLQKLVSUHYLRXV
FKDSWHUVWRSRVWFRORQLDO8QLWHG6WDWHVKLVWRU\)RULQVWDQFH)LVFKHUVXJJHVWVWKDWWKHDPHQGPHQWLQWKH
&RQVWLWXWLRQEDUULQJHVWDEOLVKHGUHOLJLRQUHVXOWHGIURPUHOLJLRXVGLYHUVLW\ZLWKLQWKHXQLWHGFRORQLHV
GLYHUVLW\GHWHUPLQHGE\WKHSURSRVHG%ULWLVKIRONZD\V$OVR)LVFKHUFRQWHQGVWKDW$PHULFDQ
SUHVLGHQWVDUHFXOWXUDOO\WLHGWR(QJODQGIRUWKHDXWKRUDVVHUWVWKDWPRVWSUHVLGHQWVFDQLQVRPHZD\WUDFH
WKHLUDQFHVWU\WRWKH%ULWLVK,VOHV
)LVFKHUVZRUNSURYLGHVDSOHWKRUDRIVRFLDOKLVWRU\PDNLQJ$OELRQV6HHGDJRRGUHVRXUFHJXLGHIRU
VFKRODUVZKRZLVKWRVWXG\FXOWXUDODVSHFWVRIWKH(QJOLVKFRORQLHV1RQHWKHOHVV)LVFKHUVSULPDU\WKHVLV
RUWKHVWURQJFXOWXUDOWLHVEHWZHHQ(QJODQGDQGWKH8QLWHG6WDWHVLVVRPHZKDWSUREOHPDWLF7RDVVHUW
WKDWWKHSULPDU\LQIOXHQFHXSRQ$PHULFDQGHYHORSPHQWFRPHVIURPDFURVVWKH$WODQWLF2FHDQGHQLHVWKH
H[LVWHQFHRIRWKHUYLDEOHVRXUFHVRIFXOWXUDOLQIOXHQFHSUHVHQWLQWKH8QLWHG6WDWHV6SDLQ)UDQFHDQG
0H[LFRHDFKLQIOXHQFHGYDULRXVUHJLRQVRIWKH8QLWHG6WDWHVWKHIRUPHUWZRQDWLRQVOHQGLQJFLYLOODZWR
/RXLVLDQDDQG:HVW)ORULGDDQGWKHODWWHUFRXQWU\LQIOXHQFLQJ1HZ0H[LFR$UL]RQD&DOLIRUQLDDQG7H[DV
FXOWXUH)LVFKHUDOVRIDLOVWRPHQWLRQWKH1DWLYH$PHULFDQLQIOXHQFHXSRQVHWWOHUVDQGFLWL]HQVRIWKH8QLWHG
6WDWHVDQLQIOXHQFHFXOWLYDWHGWKURXJKWUDGHDQGLQPDQ\FDVHVSUR[LPLW\
:KDW)LVFKHUGRHVSURYLGHLVHYLGHQFHIRUFRORQLDOVHWWOHUVZKRPLJUDWHGWR1RUWK$PHULFDDQGFRQWLQXHG
WRSUDFWLFH(QJOLVKFXVWRPV7KHDXWKRUVVXJJHVWLRQWKDWWKHVHGHFLGHGO\(QJOLVKDVSHFWVRIVRFLHW\ODVWHG
EH\RQGWKHHLJKWHHQWKFHQWXU\LVZHDNDQGGRHVQRWH[SODLQWKHGLYHUVLW\SUHVHQWLQWZHQWLHWKFHQWXU\
8QWLHG6WDWHV%\GLVUHJDUGLQJRWKHUVRXUFHVRIFXOWXUDOGHYHORSPHQW)LVFKHULQHIIHFWIDLOVWRSUHVHQWD
FRPSOHWHVWXG\,QUHVXOW)LVFKHUVZRUNLVLQFRPSOHWHDVWXG\RQSDUWRI8QLWHG6WDWHVFXOWXUHUDWKHUWKDQ
DQDEVROXWHZRUN,QWKLVVHQVH)LVFKHUVPDVVLYHZRUNOHDYHVPXFKWREHGHVLUHG
6DUD&URZOH\

$OELRQ
V6HHG)RXU%ULWLVK)RONZD\VLQ$PHULFD%\'DYLG+DFNHWW)LVFKHU1HZ<RUN2[IRUG
8QLYHUVLW\3UHVV,6%13S
)LVFKHUSUHVHQWVWKHILUVWRIDVHULHVRIFXOWXUDOKLVWRULHVLQVSLUHGE\WKH)UHQFKVFKRRORIWKH$QQDOHVZKLFK
FRQFHQWUDWHVQRWDERXWWKHSDVWEXWDERXWFKDQJH7KHQLQHWHHQWKFHQWXU\H[SODQDWLRQIRUWKHXQLTXH
LQVWLWXWLRQVRIWKH8QLWHG6WDWHVZDVRQHRI7HXWRQLFJHUPVFDUULHGLQWRWKH1RUWK$PHULFDE\*HUPDQ
DQG$QJOR6D[RQLPPLJUDQWV+HUEHUW$GDPV7KH7XUQHUWKHVLVSODFHGWKHHYROXWLRQRI$PHULFDQIUHH
VRFLHW\RQWKHIURQWLHU%LOOLQJWRQDQG%HDUG/DWHULPPLJUDQWVGHWHUPLQHGWKDWWKHSURFHVVRIHWKQLF
SOXUDOLVPHYROYHGIURPWKHQDWXUHRIYROXQWDU\LPPLJUDWLRQ6FKOHVLQJHU
%HWZHHQDQG1RUWK$PHULFDZDVVHWWOHGE\IRXUJUHDWZDYHVRI(QJOLVKVSHDNLQJLPPLJUDWLRQ
(DFKJURXSGLIIHUHGLQUHOLJLRQJHQHUDWLRQGLDOHFWWUDGLWLRQVIRONZD\VDQGSODFHRIRULJLQ$OELRQ
V6HHG
GHVFULEHVWKHVHFXOWXUDOGLIIHUHQFHVLQGHWDLODQGGLVFXVVHVWKHLULPSRUWDQFHDQGLQIOXHQFHRQ$PHULFDQ
FXOWXUHDQGUHJLRQDOKLVWRU\7KHDWWLWXGHVRIHDFKJURXSVWLOOSHUVLVWLQWKHUHJLRQDOFXOWXUHVRIWKH8QLWHG
6WDWHV7KLVSOXUDOLVPVHUYHGDVWKHIRXQGDWLRQXSRQZKLFKWKH$PHULFDQSHRSOHEXLOGWKHLUIUHHVRFLHW\
GHPRFUDWLFLQSROLWLFVFDSLWDOLVWLQHFRQRP\LQGLYLGXDOLVWLQVRFLHW\DQGSOXUDOLVWLFLQFXOWXUH
7KH3XULWDQV
H[RGXVIURPWKH(DVWRI(QJODQGEHJDQLQXQGHUSUHVVXUHIURPWKHPRQDUFKLVW
JRYHUQPHQWRI&KDUOHV,2YHUDWHQ\HDUVSDQ3XULWDQVOHIW(QJODQG7ZHQW\WKRXVDQGRIWKHVH
VHWWOHGLQ1HZ(QJODQG7KH3XULWDQVZHUHXSSHUPLGGOHFODVVDUWLVDQVODQGRZQHUVDQGSURIHVVLRQDOVIURP
WKH(DVW$QJOLFDQVKLUHVRI(VVH[6XIIRONDQG/LQFROQ7KH\EURXJKWWKHLUVWULFWUHOLJLRXVFRGHRI
GHSUDYLW\FRYHQDQWHOHFWLRQJUDFHDQGORYH7KHLUDXVWHUHDQGSUXGLVKSDWWHUQRIOLIHHYROYHGLQWRWKH
1HZ(QJODQG<DQNHH7KHWHUP3XULWDQVWLOOUHYHUEHUDWHVLQ$PHULFDQVRFLHW\7KHDXWKRUGHOLQHDWHVWKH
IRONZD\VRIWKLVJURXSGLVFXVVLQJWKHLUSDWWHUQVRIIRRGZRUNHFRQRPLFFODVVUHOLJLRXVPDUULDJHDQG
GHDWK
7KHVHFRQGZDYHRIFRORQL]DWLRQEHJDQLQWKH6RXWKRI(QJODQGIURPZKLFKWKH&DYDOLHUVRU5R\DOLVW
PLJUDWHGZLWKWKHLUVHUYDQWV)URPIRUW\WRILIW\WKRXVDQGRIWKHVHDULVWRFUDWLFVHFRQGVRQVDQG
WKHLULQGHQWXUHGVHUYDQWVIOHGWKHSROLWLFDODQGUHOLJLRXVSXUJHVRIWKH&URPZHOOLDQ3XULWDQJRYHUQPHQWVWR
WKHWLGHZDWHUVRI9LUJLQLD2QFHLQWKH9LUJLQLDFRORQ\XQGHUWKHOHDGHUVKLSRIWKHUR\DOJRYHUQRU6LU
:LOOLDP%HUNHOH\WKH\VHL]HGFRQWURORIWKHJRYHUQPHQWDQGWKHFKRLFHVWODQGVWRHVWDEOLVKDSODQWHUOLIH
VW\OH7KHVHFRQVHUYDWLYH$QJOLFDQVEXLOWWKHLUPDQRUKRXVHVZRUHWKHLUHOHJDQWFORWKHVDQGEHFDPHD
GRPLQDWHIRUFHEHKLQGWKHHDUO\*RYHUQPHQWRIWKH8QLWHG6WDWHV
7KHWKLUGZDYHRILPPLJUDWLRQEHWZHHQDQGZDVWKH4XDNHUVRU)ULHQGVZKRPLJUDWHGIURP
WKH1RUWKHUQ0LGODQGVRI(QJODQGDQG:DOHVLQWRWKH'HODZDUH9DOOH\RI3HQQV\OYDQLD2YHUWZHQW\
WKRXVDQGVPHPEHUVRIWKH6RFLHW\RI)ULHQGVIROORZHGWKHLUOHDGHU:LOOLDP3HQQLQWRWKHZLOGHUQHVVRIKLV
UR\DOJUDQWWRIRXQGDQHZVRFLHW\EDVHGRQSHDFHDQGSURVSHULW\4XDNHUVZHUHRIPRUHKXPEOHRULJLQDQG
EURXJKWZLWKWKHPDWROHUDQFHIRURWKHUUHOLJLRQV$ORYHRISHDFHVLPSOLFLW\DQGFRPPHUFHFKDUDFWHUL]HG
WKH4XDNHUWHPSHUDPHQW
)LQDOO\WKH6FRWV,ULVKIOLJKWIURP1RUWKHUQ,UHODQGDQG6FRWODQGUHVXOWHGIURPWKHSRYHUW\FDXVHGE\WKH
UHVWULFWLRQVRI(QJOLVKWUDGHUXOHV%HWZHHQRYHUILIW\SHUFHQWRIWKHSRSXODWLRQRIVRPHDUHDV
LPPLJUDWHGWRWKH1HZ:RUOG3RRUDPELWLRXVGHVSHUDWHRIWHQYLROHQWDQGDOZD\VWHPSHVWXRXVWKH&HOWV
IORZHGLQWRWKHSRUWVRI3KLODGHOSKLDXSWKH'HODZDUH9DOOH\VWUHDPHGGRZQWKHHDVWHUQVLGHRIWKH
$SSDODFKLDQ0RXQWDLQVDQGWULFNOHGDFURVVWKH&XPEHUODQG*DSLQWRWKH6RXWKHUQVWDWHV7KHVHWZR
PLOOLRQLPPLJUDQWVVWDPSHGWKHLUIRONZD\VLQWRWKH6RXWKHUQFXOWXUH
)LVFKHUSUHVHQWVDFXOWXUDOVWXG\RIHDFKRIWKHVHLPPLJUDQWZDYHV+HDQDO\VHVWKHYDULRXVIRONZD\VRI
HDFKJURXSPDUULDJHULWHVQDPLQJIDPLO\WUHHVGUHVVDQGIRRGV+HWDNHVWKHLUSODFHRIRULJLQDQGWKHLU
UHOLJLRXVDQGVRFLDOFXOWXUHWRGHWHUPLQHKRZHDFKLQJUHGLHQWFRQWULEXWHGWRWKHEURWKWKDWHYHQWXDOO\

EHFDPHWKH1RUWK$PHULFDQVWHZ7KH3XULWDQVFRQWULEXWHGDSUXGLVKRXWORRNDQGDQHHGWRFRQWUROVRFLHW\
7KH&DYDOLHUVFRQWULEXWHGDFRQVHUYDWLYHUHVLVWDQFHWRFKDQJHDQGDUHVLVWDQFHWRUHJDOGLFWDWHVWKH4XDNHUV
FRQWULEXWHGDQHHGWRKHOSRWKHUVDQGDVHHNLQJIRUSHDFHDQGWUDQTXLOLW\DQGWROHUDQFHIRUWKHUHOLJLRQDQG
EHOLHIVRIRWKHUV7KH6FRWV,ULVKFRQWULEXWHGWKHLULQGLYLGXDOLVPDQGDUHVLVWDQFHWRDOOIRUPVRIFRQWURO
7RJHWKHUZHKDYHWKHJLYHDQGWDNHWKHDPELYDOHQFHDQGEDODQFHRIWKH$PHULFDQFXOWXUH
:DWVRQ$UQROG