Professional Documents
Culture Documents
Registered Office: Plot No.156/H. No.2, Village Zadgaon, Ratnagiri 415 612, Maharashtra
Tel: 02352-232514, Fax: 02352-232513, Email: corp.secretarial@raymond.in, Website: www.raymond.in
NOTICE
90th ANNUAL GENERAL MEETING
NOTICE IS HEREBY GIVEN THAT THE NINETIETH ANNUAL GENERAL Messrs R. Nanabhoy & Co., Cost Accountants, (Firm
MEETING OF THE MEMBERS OF RAYMOND LIMITED WILL BE HELD Registration Number 7464), appointed by the Board of
ON MONDAY, JUNE 8, 2015 AT 11.00 A.M. AT THE REGISTERED Directors of the Company to conduct the audit of the cost
OFFICE OF THE COMPANY AT PLOT NO.156/H.NO.2, VILLAGE records of the Company’s Textile manufacturing units at
ZADGAON, RATNAGIRI - 415 612, MAHARASHTRA TO TRANSACT Vapi, Chhindwara and Jalgaon, be paid a remuneration,
THE FOLLOWING BUSINESS: for the Financial Year ending March 31, 2016, amounting to
ORDINARY BUSINESS: ` 3,50,000 plus service tax as applicable and re-imbursement
of out of pocket expenses incurred by them in connection
1. To consider and adopt: with the aforesaid audit.”
(a) the Audited Financial Statements of the Company 6. Adoption of new Articles of Association of the Company
for the financial year ended March 31, 2015, the containing regulations in conformity with the Companies
Reports of the Board of Directors and the Auditors Act, 2013:
thereon; and
To consider and if thought fit, to pass with or without
(b) the Audited Consolidated Financial Statements modification(s), the following as a Special Resolution:
of the Company for the financial year ended
March 31, 2015. “RESOLVED THAT pursuant to the provisions of Sections 5, 14
and other applicable provisions, if any, of the Companies
2. To declare dividend on Equity Shares. Act, 2013, read with the Companies (Incorporation)
3. To appoint a Director in place of Shri H. Sunder Rules, 2014 (including any statutory modification(s) or re-
(DIN 00020583), who retires by rotation and is eligible for enactment thereof, for the time being in force), rules and
re-appointment. regulations made thereunder, the enabling provisions
of the memorandum and articles of association of the
4. To consider and if thought fit, to pass with or without
Company and subject to the requisite approvals, consents,
modification(s), the following resolution as an Ordinary
permissions and/or sanctions as may be required, if any, the
Resolution:
draft regulations contained in the Articles of Association
“RESOLVED THAT pursuant to the provisions of Sections submitted to this meeting and duly initialled be and are
139 to 142 and other applicable provisions, if any, of the hereby approved and adopted in substitution, and to the
Companies Act, 2013, read with the Companies (Audit and entire exclusion, of the regulations contained in the existing
Auditors) Rules, 2014 (including any statutory modification(s) Articles of Association of the Company;
or re-enactment thereof, for the time being in force), Messrs
RESOLVED FURTHER THAT the Board of Directors of the
Dalal & Shah, Chartered Accountants, (Firm Registration
Company and/or Shri Thomas Fernandes, Company
Number 102021W), be and are hereby re-appointed as
Secretary be and are hereby severally authorised to do all
Auditors of the Company, to hold office from the conclusion
acts and take all such steps as may be necessary, proper or
of this meeting until the conclusion of the next Annual
expedient to give effect to this resolution.”
General Meeting of the Company on such remuneration as
agreed upon by the Board of Directors and the Auditors, By Order of the Board of Directors
in addition to the reimbursement of service tax and actual
out-of-pocket expenses incurred in connection with the
audit of accounts of the Company for the financial year Registered Office: Thomas Fernandes
ending March 31, 2016; Plot No. 156/H. No. 2, Director – Secretarial &
RESOLVED FURTHER THAT the Board of Directors of the Village Zadgaon, Company Secretary
Company and/or Shri Thomas Fernandes, Company Ratnagiri 415 612, Maharashtra
Secretary be and are hereby severally authorised to do all
April 29, 2015
acts and take all such steps as may be necessary, proper or
expedient to give effect to this resolution.” Mumbai
Notice 1
or shareholder. Proxies in order to be effective, should be has uploaded the details of unpaid and unclaimed amounts
deposited at the Registered Office of the Company, duly lying with the Company on June 10, 2014 (date of the last
completed and signed, not less than 48 hours before the Annual General Meeting) on the website of the Company
commencement of the Meeting. A Proxy Form is sent (www.raymond.in), as also on the website of the Ministry of
herewith. Proxies submitted on behalf of the companies, Corporate Affairs (www.mca.gov.in).
societies etc., must be supported by an appropriate 10. Electronic copy of the Annual Report for the year
resolution/authority, as applicable. 2014-15 is being sent to all the members whose email IDs
2. The Explanatory Statement pursuant to Section 102 of the are registered with the Company/Depository Participants(s)
Companies Act, 2013, in respect of the Special Business at and have given their positive consent to receive the same
Item Nos. 5 and 6 of the accompanying Notice are annexed through electronic means. Members other than above,
hereto. physical copies of the Annual Report is being sent in the
3. A statement giving the details of the Director seeking re- permitted mode.
appointment under Item No.3 of the accompanying Notice, 11. Electronic copy of the Notice of the 90th Annual General
as required by Clause 49 of the Listing Agreement entered Meeting of the Company inter alia indicating the process
into with the Stock Exchanges is annexed herewith. and manner of e-voting along with Attendance Slip and
4. Corporate Members intending to send their authorised Proxy Form are being sent to all the members whose email IDs
representatives to attend the Meeting pursuant to are registered with the Company/Depository Participants(s)
Section 113 of the Companies Act, 2013 are requested and have given their positive consent to receive the same
to send to the Company a certified copy of the relevant through electronic means. Members other than above,
Board Resolution together with their respective specimen physical copies of the Notice of the 90th Annual General
signatures authorising their representative(s) to attend and Meeting of the Company inter alia indicating the process
vote on their behalf at the Meeting. and manner of e-voting along with Attendance Slip and
Proxy Form are being sent in the permitted mode.
5. Relevant documents referred to in the accompanying
Notice and in the Explanatory Statements are open for 12. Members may also note that the Notice of the
inspection by the Members at the Company’s Registered 90th Annual General Meeting and the Annual Report for
Office on all working days (except Saturdays, Sundays 2015 will also be available on the Company’s website
and Public Holidays) between 11.00 a.m. to 1.00 p.m. upto www.raymond.in for their download. The physical copies
the date of this Annual General Meeting. of the aforesaid documents will also be available at the
Company’s Registered Office in Ratnagiri for inspection
6. The Register of Members and Share Transfer Books of the during normal business hours on working days. Even after
Company will remain closed from May 29, 2015 to June 8, registering for e-communication, members are entitled to
2015 (both days inclusive), for determining the names of receive such communication in physical form, upon making
members eligible for dividend on Equity Shares, if declared a request for the same, free of cost. For any communication,
at the Annual General Meeting. the shareholders may also send request to the Company’s
7. The dividend on Equity Shares, if declared at the Annual investor email id: corp.secretarial@raymond.in.
General Meeting, will be payable on or after June 9, 2015 13. Voting through electronic means:
to those members:
Pursuant to Section 108 of the Companies Act, 2013
(a) whose names appear as Members in the Register read with Rule 20 of the Companies (Management and
of Members of the Company after giving effect to Administration) Rules, 2014, as amended from time to time,
valid share transfers in physical form lodged with the Company is pleased to provide its members the facility
the Company/ Registrar and Transfer Agent on or of ‘remote e-voting’ (e-voting from a place other than
before May 28, 2015; and venue of the AGM) to exercise their right to vote at the
(b) whose names appear as Beneficial Owners in the 90th Annual General Meeting (AGM). The business may be
list of Beneficial Owners on May 28, 2015 furnished transacted through e-voting services rendered by Central
by National Securities Depository Limited (NSDL) and Depository Services (India) Limited (CDSL).
Central Depository Services (India) Limited (CDSL) The facility for voting, either through electronic voting system
for this purpose. or through ballot/polling paper shall also be made available
8. The Securities and Exchange Board of India (SEBI) has at the venue of the 90th AGM. The members attending the
mandated the submission of Permanent Account Number meeting, who have not already cast their vote through
(PAN) by every participant in securities market. Members remote e-voting shall be able to exercise their voting rights
holding shares in electronic form are, therefore, requested at the meeting. The members who have already cast their
to submit their PAN to the Depository Participants with vote through remote e-voting may attend the meeting but
whom they maintain their demat accounts. Members shall not be entitled to cast their vote again at the AGM.
holding shares in physical form should submit their PAN to The Company has appointed Shri Ashish Bhatt, Practicing
the Registrar/Company. Company Secretary as the Scrutinizer for conducting the
9. Pursuant to the provisions of Section 205C of the Companies remote e-voting and the voting process at the AGM in a fair
Act, 1956 (which are still applicable as the relevant sections and transparent manner.
under the Companies Act, 2013 are yet to be notified), The instructions to members for voting electronically are as
the Company has transferred on due dates, the unpaid or under:-
unclaimed dividend amount for the financial year ended
March 31, 2007 to the Investor Education and Protection (I) The voting period begins on Friday, June 5, 2015
Fund (IEPF) established by the Central Government. Pursuant at 10.00 a.m. and ends on Sunday, June 7, 2015
to the provisions of Investor Education and Protection Fund at 5.00 p.m. During this period shareholders’ of the
(Uploading of Information regarding unpaid and unclaimed Company, holding shares either in physical form or
amounts lying with Companies) Rules, 2012, the Company in dematerialized form, as on the cut-off date i.e.
2 Notice
June 1, 2015, may cast their vote electronically. (XIV) Click on the “RESOLUTIONS FILE LINK” if you wish to
The e-voting module shall be disabled by CDSL for view the entire Resolution details.
voting after 5.00 p.m. on June 7, 2015. (XV) After selecting the Resolution you have decided
(II) Members holding shares in physical or in demat form to vote on, click on “SUBMIT”. A confirmation box
as on June 1, 2015 shall only be eligible for e-voting. will be displayed. If you wish to confirm your vote,
(III) The shareholders should log on to the e-voting click on “OK”, else to change your vote, click on
website www.evotingindia.com. “CANCEL” and accordingly modify your vote.
(IV) Click on Shareholders. (XVI) Once you “CONFIRM” your vote on the resolution,
you will not be allowed to modify your vote.
(V) Now Enter your User ID;
(XVII) You can also take out print of the voting done by
a. For CDSL: 16 digits beneficiary ID; you by clicking on “Click here to print” option on the
b. For NSDL: 8 Character DP ID followed by 8 Voting page.
Digits Client ID; (XVIII) If Demat account holder has forgotten the changed
c. Members holding shares in Physical Form password then Enter the User ID and the image
should enter Folio Number registered with the verification code and click on Forgot Password &
Company. enter the details as prompted by the system.
(VI) Next enter the Image Verification as displayed and (XIX) Note for Non–Individual Shareholders and
Click on Login. Custodians
(VII) If you are holding shares in demat form and had • Non-Individual shareholders (i.e. other than
logged on to www.evotingindia.com and voted on Individuals, HUF, NRI etc.) and Custodian are
an earlier voting of any company, then your existing required to log on to www.evotingindia.com
password is to be used. and register themselves as Corporates.
(VIII) If you are a first time user follow the steps given • A scanned copy of the Registration Form
below: bearing the stamp and sign of the entity
Notice 3
ANNEXURE TO THE NOTICE OF THE NINETIETH ANNUAL GENERAL MEETING
EXPLANATORY STATEMENT IN RESPECT OF THE SPECIAL BUSINESS PURSUANT TO SECTION 102 OF THE COMPANIES ACT, 2013
Item No. 5 Item No. 6
The Board of Directors of the Company on the recommendation The existing Articles of Association (“Articles”) of the Company
of the Audit Committee, approved the appointment and are based on the Companies Act, 1956 and several regulations
remuneration of Messrs R. Nanabhoy & Co., Cost Accountants, in the existing Articles contain reference to the Sections of the
to conduct the audit of the Cost records of the Company’s Companies Act, 1956. Some regulations in the existing Articles
Textile manufacturing units at Vapi, Chhindwara and Jalgaon for are no longer in conformity with the provisions of the Companies
the financial year ending March 31, 2016. Act, 2013 (“Act”).
With the enactment of the Companies Act, 2013, several
In terms of the provisions of Section 148 of the Companies Act,
regulations of the existing Articles of the Company require
2013 read with Rule 14 of the Companies (Audit and Auditors)
alteration and/or deletion. Given this position, it is considered
Rules, 2014, the remuneration payable to the Cost Auditor is to
expedient to wholly replace the existing Articles by a new set
be ratified by the Members of the Company. Accordingly, the
of Articles.
Members are requested to ratify the remuneration payable to
the Cost Auditor for the financial year ending March 31, 2016, as The draft Articles shall be open for inspection by the Members
set out in the Resolution for the aforesaid services to be rendered at the Registered Office of the Company on all working days
by them. (except Saturdays, Sundays and Public Holidays) between
11.00 a.m to 1.00 p.m upto the date of this Annual General
None of the Directors or Key Managerial Personnel of the Meeting.
Company or their relatives is concerned or interested, financial
None of the Directors or Key Managerial Personnel of the
or otherwise, in the said Resolution.
Company or their relatives is concerned or interested, financial
The Board of Directors recommend the Ordinary Resolution set or otherwise, in the said Resolution.
out at Item No. 5 of the Notice for approval by the Members. The Board of Directors recommend the Special Resolution set out
at Item No.6 of the Notice for approval by the Members.
DETAILS OF DIRECTOR SEEKING RE-APPOINTMENT AS REQUIRED UNDER CLAUSE 49 OF THE LISTING AGREEMENT ENTERED
WITH THE STOCK EXCHANGES:
Name of the Director Shri H. Sunder
Date of Birth July 26, 1959
Date of Appointment on the Board July 29, 2011
Qualifications B.Com, ACA
Expertise Finance, Taxation, Accounts, Strategy, Legal, Secretarial and General Corporate
Management.
Directorship held in other Public 1. Celebrations Apparel Limited
Companies (excluding foreign, private 2. Silver Spark Apparel Limited
and Section 8 companies) 3. Ring Plus Aqua Limited
4. JK Files (India) Limited
5. J.K. Helene Curtis Limited
6. J.K. Investo Trade (India) Limited
7. JK Ansell Limited
Chairmanships/Memberships of Member – Audit Committee:
Committee across Ring Plus Aqua Limited, Silver Spark Apparel Limited
Member – Nomination and Remuneration Committee:
Silver Spark Apparel Limited
Member – Committee of Directors : Ring Plus Aqua Limited
Member – Corporate Social Responsibility Committee:
Ring Plus Aqua Limited, Silver Spark Apparel Limited
Shareholding of Director Nil
Relationship between Directors inter-se Nil
By Order of the Board of Directors
4 Notice
&+$,50$1(0(5,786'59,-$<3$76,1*+$1,$
%2$5'2)',5(&7256
'59,-$<3$76,1*+$1,$&KDLUPDQ(PHULWXV
*$87$0+$5,6,1*+$1,$&KDLUPDQDQG0DQDJLQJ'LUHFWRU
6071$:$=*$87$06,1*+$1,$1RQ([HFXWLYH'LUHFWRU
,'$*$5:$/,QGHSHQGHQW'LUHFWRU
1$%$1.85*837$,QGHSHQGHQW'LUHFWRU
35$'((3*8+$,QGHSHQGHQW'LUHFWRU
%20$1,5$1,,QGHSHQGHQW'LUHFWRU
+681'(5:KROHWLPH'LUHFWRU
0$1$*(0(17(;(&87,9(6
*$87$0+$5,6,1*+$1,$&KDLUPDQDQG0DQDJLQJ'LUHFWRU
+681'(53UHVLGHQW&RUSRUDWH$IIDLUV:KROHWLPH'LUHFWRU
6$1-$<%(+/&KLHI([HFXWLYH2IILFHU/LIHVW\OH%XVLQHVV
.$1$5$<$13UHVLGHQW+5
6/32.+$51$3UHVLGHQW&RPPHUFLDO
$1,58''+$'(6+08.+3UHVLGHQW7H[WLOHV
06+,9.80$53UHVLGHQW)LQDQFH
*$85$9<0$+$-$13UHVLGHQW*URXS$SSDUHO
&+,()),1$1&,$/2)),&(5
06+,9.80$5
',5(&7256(&5(7$5,$/ &203$1<6(&5(7$5<
7+20$6)(51$1'(6
%$1.(56
%$1.2),1',$
%$1.2)0$+$5$6+75$
&217(176 3DJHV &(175$/%$1.2),1',$
'LUHFWRUV
5HSRUW +')&%$1./,0,7('
0DQDJHPHQW'LVFXVVLRQ ,'%,%$1./,0,7('
DQG$QDO\VLV 67$7(%$1.2),1',$
67$1'$5'&+$57(5('%$1.
&RUSRUDWH*RYHUQDQFH5HSRUW
6<1',&$7(%$1.
6WDQGDORQH)LQDQFLDO6WDWHPHQWV $;,6%$1./,0,7('
$XGLWRUV5HSRUW
'(%(1785(75867((
%DODQFH6KHHW
$;,675867((6(59,&(6/,0,7('
6WDWHPHQWRI3URILWDQG/RVV
&DVK)ORZ6WDWHPHQW $8',7256
'$/$/ 6+$+
1RWHV
&KDUWHUHG$FFRXQWDQWV
6WDWHPHQWRI6LJQLILFDQW
$FFRXQWLQJ3ROLFLHVDQG3UDFWLFHV ,17(51$/ 23(5$7,21$/$8',7256
&RQVROLGDWHG)LQDQFLDO6WDWHPHQWV 0$+$-$1 $,%$5$
&KDUWHUHG$FFRXQWDQWV
'HWDLOVRI6XEVLGLDU\$VVRFLDWH
-RLQW9HQWXUH&RPSDQLHV
5(*,67(5('2)),&(
7HQ<HDU+LJKOLJKWV 3/2712+129,//$*(=$'*$21
5$71$*,5,0$+$5$6+75$
$118$/*(1(5$/0((7,1*
'DWH-XQHDWDP 5(*,675$5 6+$5(75$16)(5$*(17
9HQXH$WWKH5HJLVWHUHG2IILFH /,1.,17,0(,1',$35,9$7(/,0,7('
&3$11$/$/6,/.0,//6&203281'/%60$5*
%+$1'83:(67080%$,
',5(&7256
5(3257 0$1$*(0(17',6&866,21$1'$1$/<6,6
'HDU0HPEHUV ` FURUH3UHYLRXV<HDU` FURUH'XULQJWKH\HDU
XQGHU UHYLHZ \RXU &RPSDQ\ WUDQVIHUUHG D VXP RI `
<RXU 'LUHFWRUV DUH SOHDVHG WR SUHVHQW WKH 1LQHWLHWK $QQXDO
FURUHWRWKH'HEHQWXUH5HGHPSWLRQ5HVHUYH3UHYLRXV<HDU
5HSRUW WRJHWKHU ZLWK WKH $XGLWHG )LQDQFLDO 6WDWHPHQWV IRU WKH
` FURUH
\HDU HQGHG 0DUFK 7KH 0DQDJHPHQW 'LVFXVVLRQ DQG
$QDO\VLVLVDOVRLQFOXGHGLQWKLV5HSRUW 'XULQJWKH\HDUXQGHUUHYLHZQRDPRXQWZDVWUDQVIHUUHGWR
&25325$7(29(59,(: *HQHUDO5HVHUYH
'LUHFWRUV
5HSRUW 0DQDJHPHQW'LVFXVVLRQDQG$QDO\VLV
5DZ0DWHULDO 7KHFRPSDQ\¶V*URVV5HYHQXHIRU)<VWRRGDW`
FURUH3UHYLRXV<HDU` FURUH7KHFRPSDQ\PDGHD
0DMRU UDZ PDWHULDO SULFHV QDPHO\ :RRO 3RO\HVWHU 6WDSOH
ORVVRI` FURUH3UHYLRXV<HDU` FURUH
)LEUH 9LVFRVH 6WDSOH )LEUH DQG 3RO\PHUV ZHUH VRIW GXULQJ
WKH\HDUODUJHO\EHFDXVHRIVWHDG\LQWHUQDWLRQDOSULFHVDQG 6LOYHU6SDUN$SSDUHO/LPLWHG
D VWDEOH 5XSHH 0XOWLSOH LQWHUQDO UDZ PDWHULDO FRVW VDYLQJ
LQLWLDWLYHVKDYHDOVRKHOSHGLQNHHSLQJFRVWVLQFRQWURO 7KH FRPSDQ\ KDV D TXDOLW\ RYHUVHDV FOLHQWHOH DQG WKH
VWURQJ H[SRUW RUGHU ERRN OHG WR D VWURQJ VDOHV JURZWK
5HWDLOQHWZRUNSUHVHQFH SHUIRUPDQFH
<RXU &RPSDQ\ ZDV MXGLFLRXV LQ LWV 5HWDLO H[SDQVLRQ SODQV 7KH *URVV 5HYHQXH RI WKH FRPSDQ\ IRU )< VWRRG DW
7KH5HWDLOQHWZRUNQRZFRYHUVDODUJHQXPEHURI7LHUDQG ` FURUH3UHYLRXV<HDU` FURUH7KHFRPSDQ\
FLWLHV$VRQ0DUFK\RXU&RPSDQ\KDGUHWDLO KDGDSURILWDIWHUWD[RI` FURUH3UHYLRXV<HDU`
VWRUHV LQFOXGLQJ RYHUVHDV VWRUHV DFURVV DOO IRUPDWV7KLV FURUH
LQFOXGHV7567KH5D\PRQG6KRS(%27KH([FOXVLYH%UDQG
2XWOHWDQG0DGHWR0HDVXUH070 &HOHEUDWLRQV$SSDUHO/LPLWHG
'LUHFWRUV
5HSRUW 0DQDJHPHQW'LVFXVVLRQDQG$QDO\VLV
7KH *URVV 5HYHQXH RI WKH FRPSDQ\ VWRRG DW ` 3(5)250$1&(2)27+(5&203$1,(6
FURUH3UHYLRXV<HDU` FURUH'XULQJWKH\HDUXQGHU
5D\PRQG8&2'HQLP3ULYDWH/LPLWHG
UHYLHZWKHFRPSDQ\PDGHORVVRI ` FURUH3UHYLRXV
<HDU3URILW` FURUH,Q)<WKHFKDOOHQJLQJEXVLQHVV 7KLVFRPSDQ\LVHQJDJHGLQWKHEXVLQHVVRIPDQXIDFWXULQJ
HQYLURQPHQW LQ WKH $XWR VHFWRU ERWK LQ WKH GRPHVWLF DQGPDUNHWLQJRIGHQLPIDEULFVDQGJDUPHQWV,Q)<
DQG H[SRUW PDUNHW ZDV UHVSRQVLEOH IRU WKH GRZQWXUQ LQ UHYHQXHIURP,QGLDQRSHUDWLRQVQHWRIUHWXUQVDQGGLVFRXQWV
SHUIRUPDQFH UHFRUGHG D JURZWK DW ` FURUH 3UHYLRXV <HDU
` FURUH
'XULQJ WKH \HDU XQGHU UHYLHZ WKH FRPSDQ\ UHFHLYHG
WKH %RPED\ +LJK &RXUW RUGHU VDQFWLRQLQJ WKH VFKHPH RI 7KH FRPSDQ\ HDUQHG D SURILW DIWHU WD[ RI ` FURUH
3UHYLRXV<HDU` FURUH7KLV&RPSDQ\KDVVXFFHVVIXOO\
DPDOJDPDWLRQ RI WKH FRPSDQ\ ZLWK HUVWZKLOH 7ULQLW\ ,QGLD
PDLQWDLQHGLWVSULFHOHDGHUVKLSSRVLWLRQ7KHFRPSDQ\ZDV
/LPLWHG7KHDSSRLQWHGGDWHZDV$SULO$FFRUGLQJO\
DEOH WR VXVWDLQ SURILWDELOLW\ WKURXJK LQWURGXFWLRQ RI KLJK
WKH ILQDQFLDO VWDWHPHQW RI WKLV &RPSDQ\ LQFOXGH WKH
PDUJLQ YDOXH DGGHG SURGXFWV HVSHFLDOO\ IRU WKH H[SRUW
RSHUDWLRQV RI ERWK WKH 5LQJ *HDU %HDULQJ DQG )RUJLQJ
PDUNHWV
'LYLVLRQ
48$/,7< $&&2/$'(6
3DVKPLQD+ROGLQJV/LPLWHG
<RXU &RPSDQ\ FRQWLQXHV WR ZLQ DZDUGV \HDU DIWHU \HDU
7KHFRPSDQ\PDGHDSURILWDIWHUWD[RI` FURUHLQ)< WKXV UHLWHUDWLQJ LWV FUHGLEOH PDUNHW SRVLWLRQ 6RPH DZDUGV
3UHYLRXV<HDU` FURUH GXULQJ)<DUH
5D\PRQG/X[XU\&RWWRQV/LPLWHG L 7KH&RPSDQ\KDVZRQWKH%HVW:LQGRZ'LVSOD\
'XULQJ WKH \HDU XQGHU UHYLHZ 5D\PRQG =DPEDLWL /LPLWHG IRU&RORUVRI:RROFDPSDLJQIURP9LVXDO0HUFKDQGLVLQJ
5HWDLO'HVLJQ$ZDUGV
KDV FKDQJHG LWV QDPH WR ³5D\PRQG /X[XU\ &RWWRQV
/LPLWHG´ 7KLV FRPSDQ\ FDWHUV WR QLFKH KLJKYDOXH /X[XU\ LL 7KH&RPSDQ\KDVZRQWKH%HVW5HWDLO6WRUH'HVLJQIRU
&RWWRQ VKLUWLQJ FXVWRPHUV 7KH HUVWZKLOH -RLQW 9HQWXUH )DVKLRQ $SSDUHO %UDQG IRU 5D\PRQG 5HDG\WRZHDU
SDUWQHU&RWRQLILFR+RQHJJHU6S$ZDVGHFODUHGEDQNUXSW VWRUH9LYLDQD0DOO7KDQHIURP9LVXDO0HUFKDQGLVLQJ
E\ DQ ,WDOLDQ &RXUW 7KH EDQNUXSWF\ SURFHHGLQJV DUH LQ 5HWDLO'HVLJQ$ZDUGV
SURJUHVV 7KH &RPSDQ\¶V FODLP IRU D VXP DJJUHJDWLQJ WR LLL 7KH &RPSDQ\ KDV ZRQ WKH ³1DWLRQDO /DDGOL 0HGLD
` FURUH WRZDUGV ([SRUW UHFHLYDEOHV KDV EHHQ DGPLWWHG $GYHUWLVLQJ $ZDUGV IRU *HQGHU 6HQVLWLYLW\ ´
E\WKH,WDOLDQ&RXUW5HFHLYHU7KH&RPSDQ\KDVDSSRLQWHG VXSSRUWHGE\81)3$IRUWKH&RPSOHWH0DQ+XVEDQG
DQ ,WDOLDQ /DZ\HU WR SURWHFW LWV LQWHUHVW DQG DWWHQG WR WKH %DE\FRPPHUFLDO
OHJDOSURFHHGLQJVLQ,WDO\
LY 7KH&KKLQGZDUD7H[WLOH8QLWRIWKH&RPSDQ\EDJJHG
'XULQJWKH\HDUXQGHUUHYLHZ5D\PRQG/LPLWHGVXEVFULEHG WKHIROORZLQJDZDUGV
WR WKH HQWLUH ULJKWV LVVXH E\ WKH VDLG 6XEVLGLDU\ &RPSDQ\
Ć %HVW (PSOR\HU $ZDUG E\ WKH 0LQLVWU\ RI /DERXU
DQGVXEVFULEHG`FURUHRIWKH(TXLW\6KDUHFDSLWDOWRKHOS
(PSOR\PHQW*RYHUQPHQWRI0DGK\D3UDGHVKLQ
ILQDQFHWKHH[SDQVLRQSURJUDPRIWKLVVXEVLGLDU\
WKH\HDU
7KH*URVV5HYHQXHIRUWKH)<VWRRGDW` FURUH Ć +HDOWK 6DIHW\ DQG (QYLURQPHQW $ZDUG IRU WKH
3UHYLRXV<HDU` FURUH7KH1HWSURILWDIWHUWD[VWRRG \HDU E\ 1DWLRQDO 6DIHW\ &RXQFLO 0DGK\D
DW` FURUH3UHYLRXV<HDU` FURUH 3UDGHVK&KDSWHU
2YHUVHDVVXEVLGLDULHV Y 3DUN$YHQXHKDVZRQWKH%HVW'HVLJQ&RQFHSWRIWKH
-D\ND\RUJ$* \HDU$ZDUGIRU,QQRYDWLYH$872),7&RQFHSWDW,PDJHV
)DVKLRQ$ZDUGV
7KLV&RPSDQ\UHFRUGHGDORVVRI&+)HTXLYDOHQW
YL -. )LOHV ,QGLD /LPLWHG ă &KLSOXQ 8QLW KDV ZRQ WKH
WR ` FURUH IRU WKH \HDU HQGHG 'HFHPEHU
FRYHWHG ³,1',=(1 $ZDUG´ IRU ([FHOOHQFH LQ
>3UHYLRXV<HDU3URILW&+)HTXLYDOHQWWR` FURUH@
2SHUDWLRQV IURP .$,=(1 ,QVWLWXWH RI ,QGLD DW 1DWLRQDO
5D\PRQG(XURSH/LPLWHG &DVH6WXG\&RPSHWLWLRQ
7KH&RPSDQ\UHFRUGHGDSURILWRI*%3HTXLYDOHQW &2162/,'$7('$&&28176
WR ` FURUH IRU WKH \HDU HQGHG 'HFHPEHU 7KH &RQVROLGDWHG )LQDQFLDO 6WDWHPHQWV RI WKH &RPSDQ\
>3UHYLRXV<HDU3URILW*%3HTXLYDOHQWWR` FURUH@ DUH SUHSDUHG LQ DFFRUGDQFH ZLWK UHOHYDQW $FFRXQWLQJ
5 $/RJLVWLFV,1&86$ 6WDQGDUGVYL]$6$6DQG$6LVVXHGE\WKH,QVWLWXWH
RI&KDUWHUHG$FFRXQWDQWVRI,QGLDDQGIRUPVDSDUWRIWKLV
7KLV&RPSDQ\LVWKHVXEVLGLDU\RI5LQJ3OXV$TXD/LPLWHGVHW $QQXDO5HSRUW
XSLQ86$WRSURYLGHEHWWHUVHUYLFHWR86EDVHGFXVWRPHUV
PDGHDORVVRI86'HTXLYDOHQWWR` FURUHIRUWKH &25325$7(*29(51$1&(
\HDUHQGHG0DUFK>3UHYLRXV<HDU3URILW86' $V SHU &ODXVH RI WKH /LVWLQJ $JUHHPHQW ZLWK WKH 6WRFN
HTXLYDOHQWWR` FURUH@ ([FKDQJHV D VHSDUDWH VHFWLRQ RQ FRUSRUDWH JRYHUQDQFH
'LUHFWRUV
5HSRUW 0DQDJHPHQW'LVFXVVLRQDQG$QDO\VLV
SUDFWLFHV IROORZHG E\ WKH &RPSDQ\ WRJHWKHU ZLWK D %2$5'(9$/8$7,21
FHUWLILFDWH IURP WKH &RPSDQ\¶V $XGLWRUV FRQILUPLQJ
3XUVXDQW WR WKH SURYLVLRQV RI WKH &RPSDQLHV $FW
FRPSOLDQFHIRUPVDQLQWHJUDOSDUWRIWKLV5HSRUW
DQG &ODXVH RI WKH /LVWLQJ $JUHHPHQW D VWUXFWXUHG
(;75$&72)$118$/5(7851 TXHVWLRQQDLUHZDVSUHSDUHGDIWHUWDNLQJLQWRFRQVLGHUDWLRQ
7KHGHWDLOVIRUPLQJSDUWRIWKHH[WUDFWRIWKH$QQXDO5HWXUQLQ RI WKH YDULRXV DVSHFWV RI WKH %RDUG¶V IXQFWLRQLQJ
IRUP0*7DVUHTXLUHGXQGHU6HFWLRQRIWKH&RPSDQLHV FRPSRVLWLRQ RI WKH %RDUG DQG LWV &RPPLWWHHV FXOWXUH
$FW LV LQFOXGHG LQ WKLV 5HSRUW DV $QQH[XUH $ DQG H[HFXWLRQ DQG SHUIRUPDQFH RI VSHFLILF GXWLHV REOLJDWLRQV
IRUPVDQLQWHJUDOSDUWRIWKLV5HSRUW DQGJRYHUQDQFH
'LUHFWRUV
5HSRUW 0DQDJHPHQW'LVFXVVLRQDQG$QDO\VLV
7KH SROLF\ RQ 5HODWHG 3DUW\ 7UDQVDFWLRQV DV DSSURYHG E\ &267$8',7
WKH%RDUGRI'LUHFWRUVKDVEHHQXSORDGHGRQWKHZHEVLWHRI
$V SHU WKH UHTXLUHPHQW RI &HQWUDO *RYHUQPHQW DQG
WKH&RPSDQ\7KHZHEOLQNRIWKHVDPHKDVEHHQSURYLGHG
SXUVXDQW WR 6HFWLRQ RI WKH &RPSDQLHV $FW UHDG
LQWKH&RUSRUDWH*RYHUQDQFH5HSRUW1RQHRIWKH'LUHFWRUV
ZLWK WKH &RPSDQLHV &RVW 5HFRUGV DQG $XGLW 5XOHV
KDV DQ\ SHFXQLDU\ UHODWLRQVKLS RU WUDQVDFWLRQV YLVjYLV WKH
DV DPHQGHG IURP WLPH WR WLPH \RXU &RPSDQ\ KDV EHHQ
&RPSDQ\
FDUU\LQJRXWDXGLWRIFRVWUHFRUGVUHODWLQJWR7H[WLOH'LYLVLRQ
6,*1,),&$17 $1' 0$7(5,$/ 25'(56 3$66(' %< 7+( HYHU\\HDU
5(*8/$725625&28576 7KH %RDUG RI 'LUHFWRUV RQ WKH UHFRPPHQGDWLRQ RI $XGLW
7KHUHDUHQRVLJQLILFDQWDQGPDWHULDORUGHUVSDVVHGE\WKH &RPPLWWHH KDV DSSRLQWHG 0HVVUV 5 1DQDEKR\ &R
5HJXODWRUV&RXUWV WKDW ZRXOG LPSDFW WKH JRLQJ FRQFHUQ &RVW $FFRXQWDQWV DV &RVW $XGLWRU WR DXGLW WKH FRVW
VWDWXVRIWKH&RPSDQ\DQGLWVIXWXUHRSHUDWLRQV DFFRXQWVRIWKH&RPSDQ\IRUWKHILQDQFLDO\HDUDW
DUHPXQHUDWLRQRI` SOXVVHUYLFHWD[DVDSSOLFDEOH
',5(&7256¶5(63216,%,/,7<67$7(0(17 DQGUHLPEXUVHPHQWRIRXWRISRFNHWH[SHQVHV$VUHTXLUHG
7R WKH EHVW RI NQRZOHGJH DQG EHOLHI DQG DFFRUGLQJ WR XQGHU WKH &RPSDQLHV $FW D UHVROXWLRQ VHHNLQJ
WKH LQIRUPDWLRQ DQG H[SODQDWLRQV REWDLQHG E\ WKHP \RXU PHPEHU¶V DSSURYDO IRU WKH UHPXQHUDWLRQ SD\DEOH WR WKH
'LUHFWRUVPDNHWKHIROORZLQJVWDWHPHQWLQWHUPVRI6HFWLRQ &RVW$XGLWRUIRUPVSDUWRIWKH1RWLFHFRQYHQLQJWKH$QQXDO
FRIWKH&RPSDQLHV$FW *HQHUDO0HHWLQJ
L WKDW LQ WKH SUHSDUDWLRQ RI WKH $QQXDO $FFRXQWV IRU 7KHFRVWDXGLWUHSRUWIRUWKHILQDQFLDO\HDUZDVILOHG
WKH \HDU HQGHG 0DUFK WKH DSSOLFDEOH ZLWKWKH0LQLVWU\RI&RUSRUDWH$IIDLUVRQ6HSWHPEHU
DFFRXQWLQJVWDQGDUGVKDYHEHHQIROORZHGDORQJZLWK 6(&5(7$5,$/$8',7
SURSHU H[SODQDWLRQ UHODWLQJ WR PDWHULDO GHSDUWXUHV LI
DQ\ 3XUVXDQWWRWKHSURYLVLRQVRI6HFWLRQRIWKH&RPSDQLHV
$FW DQG UXOHV PDGH WKHUHXQGHU WKH &RPSDQ\ KDV
LL DQGDSSOLHGWKHPFRQVLVWHQWO\DQGPDGHMXGJHPHQWV DSSRLQWHG 0HVVUV $VKLVK %KDWW $VVRFLDWHV D ILUP RI
DQGHVWLPDWHVWKDWDUHUHDVRQDEOHDQGSUXGHQWVRDV &RPSDQ\6HFUHWDULHVLQ3UDFWLFH&31RWRXQGHUWDNH
WRJLYHDWUXHDQGIDLUYLHZRIWKHVWDWHRIDIIDLUVRIWKH WKH6HFUHWDULDO$XGLWRIWKH&RPSDQ\7KH6HFUHWDULDO$XGLW
&RPSDQ\DVDW0DUFKDQGRIWKHSURILWRIWKH 5HSRUW LV LQFOXGHG DV $QQH[XUH % DQG IRUPV DQ LQWHJUDO
&RPSDQ\IRUWKH\HDUHQGHGRQWKDWGDWH SDUWRIWKLV5HSRUW
LLL WKDW WKH 'LUHFWRUV KDYH WDNHQ SURSHU DQG VXIILFLHQW 7KHUHLVQRVHFUHWDULDODXGLWTXDOLILFDWLRQIRUWKH\HDUXQGHU
FDUH IRU WKH PDLQWHQDQFH RI DGHTXDWH DFFRXQWLQJ UHYLHZ
UHFRUGV LQ DFFRUGDQFH ZLWK WKH SURYLVLRQV RI WKH
,17(51$/&21752/6<67(06$1'7+(,5$'(48$&<
&RPSDQLHV$FWIRUVDIHJXDUGLQJWKHDVVHWVRIWKH
&RPSDQ\DQGIRUSUHYHQWLQJDQGGHWHFWLQJIUDXGDQG <RXU &RPSDQ\ KDV DQ HIIHFWLYH LQWHUQDO FRQWURO DQG
RWKHULUUHJXODULWLHV ULVNPLWLJDWLRQ V\VWHP ZKLFK DUH FRQVWDQWO\ DVVHVVHG
DQG VWUHQJWKHQHG ZLWK QHZUHYLVHG VWDQGDUG RSHUDWLQJ
LY WKHDQQXDODFFRXQWVKDYHEHHQSUHSDUHGRQDJRLQJ
SURFHGXUHV 7KH &RPSDQ\¶V LQWHUQDO FRQWURO V\VWHP LV
FRQFHUQEDVLV
FRPPHQVXUDWH ZLWK LWV VL]H VFDOH DQG FRPSOH[LWLHV RI LWV
Y WKDW WKH 'LUHFWRUV KDG ODLG GRZQ LQWHUQDO ILQDQFLDO RSHUDWLRQV 7KH LQWHUQDO DQG RSHUDWLRQDO DXGLW LV HQWUXVWHG
FRQWUROVWREHIROORZHGE\WKH&RPSDQ\DQGWKDWVXFK WR 0HVVUV 0DKDMDQ $LEDUD D UHSXWHG ILUP RI &KDUWHUHG
LQWHUQDO ILQDQFLDO FRQWUROV DUH DGHTXDWH DQG ZHUH $FFRXQWDQWV7KHPDLQWKUXVWRILQWHUQDODXGLWLVWRWHVWDQG
RSHUDWLQJHIIHFWLYHO\DQG UHYLHZ FRQWUROV DSSUDLVDO RI ULVNV DQG EXVLQHVV SURFHVVHV
EHVLGHV EHQFKPDUNLQJ FRQWUROV ZLWK EHVW SUDFWLFHV LQ WKH
YL WKDWWKH'LUHFWRUVKDGGHYLVHGSURSHUV\VWHPVWRHQVXUH LQGXVWU\
FRPSOLDQFH ZLWK WKH SURYLVLRQV RI DOO DSSOLFDEOH ODZV
DQGWKDWVXFKV\VWHPVZHUHDGHTXDWHDQGRSHUDWLQJ 7KH $XGLW &RPPLWWHH RI WKH %RDUG RI 'LUHFWRUV DFWLYHO\
HIIHFWLYHO\ UHYLHZV WKH DGHTXDF\ DQG HIIHFWLYHQHVV RI WKH LQWHUQDO
FRQWURO V\VWHPV DQG VXJJHVWV LPSURYHPHQWV WR VWUHQJWKHQ
67$78725<$8',7 WKH VDPH 7KH &RPSDQ\ KDV D UREXVW 0DQDJHPHQW
0HVVUV 'DODO 6KDK &KDUWHUHG $FFRXQWDQWV )LUP ,QIRUPDWLRQ6\VWHPZKLFKLVDQLQWHJUDOSDUWRIWKHFRQWURO
5HJLVWUDWLRQ 1R : ZKR DUH 6WDWXWRU\ $XGLWRUV PHFKDQLVP
RI WKH &RPSDQ\ KROG RIILFH XS WR WKH IRUWKFRPLQJ 7KH $XGLW &RPPLWWHH RI WKH %RDUG RI 'LUHFWRUV 6WDWXWRU\
$QQXDO *HQHUDO 0HHWLQJ DQG DUH UHFRPPHQGHG IRU UH $XGLWRUV DQG WKH %XVLQHVV +HDGV DUH SHULRGLFDOO\ DSSULVHG
DSSRLQWPHQW WR DXGLW WKH DFFRXQWV RI WKH &RPSDQ\ RIWKHLQWHUQDODXGLWILQGLQJVDQGFRUUHFWLYHDFWLRQVWDNHQ
IRU WKH ILQDQFLDO \HDU $V UHTXLUHG XQGHU WKH $XGLWSOD\VDNH\UROHLQSURYLGLQJDVVXUDQFHWRWKH%RDUG
SURYLVLRQV RI 6HFWLRQ RI WKH &RPSDQLHV $FW RI 'LUHFWRUV 6LJQLILFDQW DXGLW REVHUYDWLRQV DQG FRUUHFWLYH
WKH &RPSDQ\ KDV REWDLQHG ZULWWHQ FRQILUPDWLRQ IURP DFWLRQV WDNHQ E\ WKH PDQDJHPHQW DUH SUHVHQWHG WR WKH
0HVVUV 'DODO 6KDK WKDW WKHLU DSSRLQWPHQW LI PDGH $XGLW &RPPLWWHH RI WKH %RDUG 7R PDLQWDLQ LWV REMHFWLYLW\
ZRXOG EH LQ FRQIRUPLW\ ZLWK WKH OLPLWV VSHFLILHG LQ WKH DQG LQGHSHQGHQFH WKH ,QWHUQDO $XGLW IXQFWLRQ UHSRUWV WR
VDLG6HFWLRQ WKH&KDLUPDQRIWKH$XGLW&RPPLWWHH
'LUHFWRUV
5HSRUW 0DQDJHPHQW'LVFXVVLRQDQG$QDO\VLV
5,6.0$1$*(0(17 L 6PW 6XORFKDQDGHYL 6LQJKDQLD 6FKRRO DW 7KDQH
0DKDUDVKWUD UXQ E\ 6PW 6XORFKDQDGHYL 6LQJKDQLD
'XULQJ WKH \HDU XQGHU UHYLHZ WKH &RPSDQ\ HQJDJHG D 6FKRRO 7UXVW ³WKH 6FKRRO 7UXVW´D SXEOLF FKDULWDEOH
UHSXWHGILUPVSHFLDOL]LQJLQULVNPDQDJHPHQWWRLGHQWLI\DQG HGXFDWLRQWUXVW
HYDOXDWHHOHPHQWVRIEXVLQHVVULVN&RQVHTXHQWO\DUHYLVHG
UREXVW%XVLQHVV5LVN0DQDJHPHQWIUDPHZRUNLVLQSODFH7KH LL .DLODVKSDW 6LQJKDQLD +LJK 6FKRRO LQ &KKLQGZDUD
ULVNPDQDJHPHQWIUDPHZRUNGHILQHVWKHULVNPDQDJHPHQW 0DGK\D 3UDGHVK UXQ E\ DQ HGXFDWLRQ VRFLHW\ ERWK
DSSURDFKRIWKH&RPSDQ\DQGLQFOXGHVSHULRGLFUHYLHZRI WKH VFKRROV KDYH DQ RYHUDOO VWUHQJWK RI DERXW
VXFKULVNVDQGDOVRGRFXPHQWDWLRQPLWLJDWLQJFRQWUROVDQG VWXGHQWV
UHSRUWLQJPHFKDQLVPRIVXFKULVNV LLL 'U 9LMD\SDW 6LQJKDQLD 6FKRRO DW 9DSL *XMDUDW UXQ E\
6RPHRIWKHULVNVWKDWWKH&RPSDQ\LVH[SRVHGWRDUH WKH 6FKRRO 7UXVW SURYLGHV TXDOLW\ HGXFDWLRQ QRW RQO\
WR WKH 5D\PRQG HPSOR\HHV¶ FKLOGUHQ EXW DOVR WR WKH
)LQDQFLDO5LVNV FKLOGUHQRIWKHORFDOSRSXODFH
7KH &RPSDQ\¶V SROLF\ LV WR DFWLYHO\ PDQDJH LWV IRUHLJQ LL 5D\PRQG5HKDELOLWDWLRQ&HQWUHVHWXSIRUWKHZHOIDUH
H[FKDQJH ULVN ZLWKLQ WKH IUDPHZRUN ODLG GRZQ E\ WKH RI XQGHUSULYLOHJHG \RXWK DW -HNHJUDP 7KDQH 7KLV
&RPSDQ\¶VIRUH[SROLF\DSSURYHGE\WKH%RDUG LQLWLDWLYH HQDEOHV OHVV IRUWXQDWH \RXWK WR EH VHOI
VXIILFLHQW LQ OLIH 7KLV &HQWUH SURYLGHV IUHH YRFDWLRQDO
*LYHQ WKH LQWHUHVW UDWH IOXFWXDWLRQV WKH &RPSDQ\ KDV
WUDLQLQJZRUNVKRSVWR\RXQJER\VRYHUWKHDJHRI
DGRSWHGDSUXGHQWDQGFRQVHUYDWLYHULVNPLWLJDWLRQVWUDWHJ\
7KHWKUHHPRQWKYRFDWLRQDOFRXUVHVFRPSULVHRIEDVLF
WRPLQLPL]HLQWHUHVWFRVWV
WUDLQLQJ LQ HOHFWULFDO DLUFRQGLWLRQLQJ UHIULJHUDWLRQ
&RPPRGLW\3ULFH5LVNV DQGSOXPELQJDFWLYLWLHVDQG
7KH &RPSDQ\ LV H[SRVHG WR WKH ULVN RI SULFH IOXFWXDWLRQ LLL $ 7DLORULQJ 7UXVW QDPHG µ67,5¶ 6NLOOHG 7DLORULQJ ,QVWLWXWH
RI UDZ PDWHULDOV DV ZHOO DV ILQLVKHG JRRGV 7KH &RPSDQ\ E\5D\PRQGVHWXSDV DVRFLDOLQLWLDWLYHWKDWSURYLGHV
SURDFWLYHO\ PDQDJHV WKHVH ULVNV WKURXJK IRUZDUG WDLORULQJVNLOOVWRWKHXQGHUSULYLOHJHGVFKRROGURSRXWV
ERRNLQJ LQYHQWRU\ PDQDJHPHQW DQG SURDFWLYH YHQGRU ZRPHQ DQG \RXWK DQG KHOSV LPSURYH WKHLU LQFRPH
GHYHORSPHQW SUDFWLFHV 7KH &RPSDQ\¶V UHSXWDWLRQ IRU JHQHUDWLQJFDSDELOLW\DQGDOVRUHWDLQWKHDUWRIWDLORULQJ
TXDOLW\ SURGXFW GLIIHUHQWLDWLRQ DQG VHUYLFH FRXSOHG ZLWK 8QGHUWKHDHJLVRIWKLV7UXVW5D\PRQG7DLORULQJ&HQWHUV
H[LVWHQFH RI SRZHUIXO EUDQG LPDJH ZLWK UREXVW PDUNHWLQJ KDYHFRPHXSDW3DWQD-DLSXU-RGKSXUDQG/XFNQRZ
QHWZRUNPLWLJDWHVWKHLPSDFWRISULFHULVNRQILQLVKHGJRRGV (19,5210(17$1'6$)(7<
5HJXODWRU\5LVNV 7KH &RPSDQ\ LV FRQVFLRXV RI WKH LPSRUWDQFH RI
7KH &RPSDQ\ LV H[SRVHG WR ULVNV DWWDFKHG WR YDULRXV HQYLURQPHQWDOO\FOHDQDQGVDIHRSHUDWLRQV7KH&RPSDQ\¶V
VWDWXWHVDQGUHJXODWLRQVLQFOXGLQJWKH&RPSHWLWLRQ$FW7KH SROLF\ UHTXLUHV FRQGXFW RI RSHUDWLRQV LQ VXFK D PDQQHU
&RPSDQ\LVPLWLJDWLQJWKHVHULVNVWKURXJKUHJXODUUHYLHZRI VR DV WR HQVXUH VDIHW\ RI DOO FRQFHUQHG FRPSOLDQFHV
OHJDO FRPSOLDQFHV FDUULHG RXW WKURXJK LQWHUQDO DV ZHOO DV HQYLURQPHQWDO UHJXODWLRQV DQG SUHVHUYDWLRQ RI QDWXUDO
H[WHUQDOFRPSOLDQFHDXGLWV UHVRXUFHV
+XPDQ5HVRXUFHV5LVNV $V UHTXLUHG E\ WKH 6H[XDO +DUDVVPHQW RI :RPHQ DW
:RUNSODFH 3UHYHQWLRQ 3URKLELWLRQ 5HGUHVVDO $FW
5HWDLQLQJWKHH[LVWLQJWDOHQWSRRODQGDWWUDFWLQJQHZWDOHQW WKH &RPSDQ\ KDV IRUPXODWHG DQG LPSOHPHQWHG D SROLF\
DUHPDMRUULVNV7KH&RPSDQ\KDVLQLWLDWHGYDULRXVPHDVXUHV RQ SUHYHQWLRQ RI VH[XDO KDUDVVPHQW DW ZRUNSODFH ZLWK D
LQFOXGLQJ UROOLQJ RXW VWUDWHJLF WDOHQW PDQDJHPHQW V\VWHP PHFKDQLVPRIORGJLQJFRPSODLQWV,WVUHGUHVVDOLVSODFHGRQ
WUDLQLQJ DQG LQWHJUDWLRQ RI OHDUQLQJ DQG GHYHORSPHQW WKHLQWUDQHWIRUWKHEHQHILWRILWVHPSOR\HHV'XULQJWKH\HDU
DFWLYLWLHV7KH&RPSDQ\KDVDOVRHVWDEOLVKHGD³5D\PRQG XQGHUUHYLHZQRFRPSODLQWVZHUHUHSRUWHGWRWKH%RDUG
/HDGHUVKLS$FDGHP\´ZKLFKKHOSVWRLGHQWLI\QXUWXUHDQG
JURRP PDQDJHULDO WDOHQW ZLWKLQ WKH 5D\PRQG *URXS WR
+80$15(6285&(6$1',1'8675,$/5(/$7,216
SUHSDUHWKHPIRUIXWXUHEXVLQHVVOHDGHUVKLS 7KH&RPSDQ\WDNHVSULGHLQWKHFRPPLWPHQWFRPSHWHQFH
DQG GHGLFDWLRQ VKRZQ E\ LWV HPSOR\HHV LQ DOO DUHDV RI
&25325$7(62&,$/5(63216,%,/,7<&65
EXVLQHVV
$V D SDUW RI LWV LQLWLDWLYH XQGHU WKH ³&RUSRUDWH 6RFLDO 7KH &RPSDQ\ KDV D VWUXFWXUHG LQGXFWLRQ SURFHVV DW DOO
5HVSRQVLELOLW\´ &65 GULYH WKH &RPSDQ\ KDV XQGHUWDNHQ ORFDWLRQV DQG PDQDJHPHQW GHYHORSPHQW SURJUDPV WR
SURMHFWV LQ WKH DUHD RI UXUDO GHYHORSPHQW DQG SURPRWLQJ XSJUDGH VNLOOV RI PDQDJHUV 2EMHFWLYH DSSUDLVDO V\VWHPV
KHDOWKFDUH7KHVHSURMHFWVDUHLQDFFRUGDQFHZLWK6FKHGXOH EDVHG RQ .H\ 5HVXOW $UHDV .5$V DUH LQ SODFH IRU VHQLRU
9,, RI WKH &RPSDQLHV $FW DQG WKH &RPSDQ\¶V &65 PDQDJHPHQWVWDII
SROLF\ 7KH 5HSRUW RQ &65 DFWLYLWLHV DV UHTXLUHG XQGHU
&RPSDQLHV &RUSRUDWH 6RFLDO 5HVSRQVLELOLW\ 3ROLF\ 5XOHV 7KH &RPSDQ\ LV FRPPLWWHG WR QXUWXULQJ HQKDQFLQJ
LVVHWRXWDV$QQH[XUH&IRUPLQJSDUWRIWKLV5HSRUW DQG UHWDLQLQJ WRS WDOHQW WKURXJK VXSHULRU /HDUQLQJ
$SDUW IURP WKH &65 DFWLYLWLHV XQGHU WKH &RPSDQLHV $FW 2UJDQL]DWLRQDO'HYHORSPHQW7KLVLVDSDUWRI&RUSRUDWH+5
WKH &RPSDQ\ FRQWLQXHV WR YROXQWDULO\ VXSSRUW WKH IXQFWLRQDQGLVDFULWLFDOSLOODUWRVXSSRUWWKHRUJDQL]DWLRQ¶V
IROORZLQJVRFLDOLQLWLDWLYHV JURZWKDQGLWVVXVWDLQDELOLW\LQWKHORQJUXQ
'LUHFWRUV
5HSRUW 0DQDJHPHQW'LVFXVVLRQDQG$QDO\VLV
67$78725<,1)250$7,21 7KH &RPSDQ\ KDV QRW DFFHSWHG DQ\ GHSRVLWV ZLWKLQ WKH
PHDQLQJ RI 6HFWLRQ RI WKH &RPSDQLHV $FW UHDG
7KH LQIRUPDWLRQ RQ FRQVHUYDWLRQ RI HQHUJ\ WHFKQRORJ\ ZLWKWKH&RPSDQLHV$FFHSWDQFHRI'HSRVLWV5XOHV
DEVRUSWLRQ DQG IRUHLJQ H[FKDQJH HDUQLQJV DQG RXWJR
SXUVXDQWWR6HFWLRQPRIWKH&RPSDQLHV$FW 7KH %XVLQHVV 5HVSRQVLELOLW\ 5HSRUWLQJ DV UHTXLUHG E\
UHDGZLWKWKH5XOHRIWKH&RPSDQLHV$FFRXQWV5XOHV &ODXVHRIWKH/LVWLQJ$JUHHPHQWZLWKWKH6WRFN([FKDQJHV
LVJLYHQLQ$QQH[XUH'WRWKLV5HSRUW LV QRW DSSOLFDEOH WR \RXU &RPSDQ\ IRU WKH ILQDQFLDO \HDU
HQGLQJ0DUFK
SHUVRQVHPSOR\HGWKURXJKRXWWKH\HDUZHUHLQUHFHLSW
&$87,21$5<67$7(0(17
RIUHPXQHUDWLRQRI` ODFSHUDQQXPRUPRUHDPRXQWLQJ
WR` FURUHDQGHPSOR\HHVHPSOR\HGIRUWKHSDUWRI 6WDWHPHQWV LQ WKLV 'LUHFWRUV¶ 5HSRUW 0DQDJHPHQW
WKH)<ZHUHLQUHFHLSWRIUHPXQHUDWLRQRI` ODFSHU 'LVFXVVLRQ DQG $QDO\VLV GHVFULELQJ WKH &RPSDQ\¶V
PRQWKRUPRUHDPRXQWLQJWR` FURUH'XULQJ)< REMHFWLYHV SURMHFWLRQV HVWLPDWHV H[SHFWDWLRQV RU
WKH&RPSDQ\KDGHPSOR\HHV SUHGLFWLRQV PD\ EH ³IRUZDUGORRNLQJ VWDWHPHQWV´ ZLWKLQ
WKHPHDQLQJRIDSSOLFDEOHVHFXULWLHVODZVDQGUHJXODWLRQV
7KH LQIRUPDWLRQ UHTXLUHG XQGHU 6HFWLRQ RI WKH $FWXDO UHVXOWV FRXOG GLIIHU PDWHULDOO\ IURP WKRVH H[SUHVVHG
&RPSDQLHV$FWUHDGZLWK&RPSDQLHV$SSRLQWPHQW RU LPSOLHG ,PSRUWDQW IDFWRUV WKDW FRXOG PDNH GLIIHUHQFH
DQG 5HPXQHUDWLRQ RI 0DQDJHULDO 3HUVRQQHO 5XOHV WR WKH &RPSDQ\¶V RSHUDWLRQV LQFOXGH UDZ PDWHULDO
DQG IRUPLQJ SDUW RI WKH 'LUHFWRUV¶ 5HSRUW IRU WKH \HDU DYDLODELOLW\ DQG LWV SULFHV F\FOLFDO GHPDQG DQG SULFLQJ LQ
HQGHG 0DUFK LV JLYHQ LQ D VHSDUDWH $QQH[XUH WR WKH&RPSDQ\¶VSULQFLSOHPDUNHWVFKDQJHVLQ*RYHUQPHQW
WKLV5HSRUW UHJXODWLRQV 7D[ UHJLPHV HFRQRPLF GHYHORSPHQWV ZLWKLQ
,QGLD DQG WKH FRXQWULHV LQ ZKLFK WKH &RPSDQ\ FRQGXFWV
7KHDERYH$QQH[XUHLVQRWEHLQJVHQWDORQJZLWKWKLV5HSRUW EXVLQHVVDQGRWKHUDQFLOODU\IDFWRUV
WR WKH 0HPEHUV RI WKH &RPSDQ\ LQ OLQH ZLWK WKH SURYLVLRQ
RI6HFWLRQRIWKH&RPSDQLHV$FW0HPEHUVZKR $335(&,$7,21
DUH LQWHUHVWHG LQ REWDLQLQJ WKHVH SDUWLFXODUV PD\ ZULWH WR <RXU &RPSDQ\ ZLOO VRRQ FRPSOHWH HYHQWIXO \HDUV RI LWV
WKH &RPSDQ\ 6HFUHWDU\ DW WKH 5HJLVWHUHG 2IILFH RI WKH H[LVWHQFHLQWKLV&RXQWU\9HU\IHZEUDQGVFRQWLQXHWRUHPDLQ
&RPSDQ\ 7KH DIRUHVDLG $QQH[XUH LV DOVR DYDLODEOH IRU UHOHYDQWDQGEHFRPHLFRQLFRYHUVXFKDORQJSDVVDJHRI
LQVSHFWLRQ E\ 0HPEHUV DW WKH 5HJLVWHUHG 2IILFH RI WKH WLPH<RXU'LUHFWRUVDUHSURXGRIWKLVULFKKHULWDJHDQGWKDQN
&RPSDQ\GD\VEHIRUHWKHWK$QQXDO*HQHUDO0HHWLQJ DOORXUVWDNHKROGHUVZKRKDYHFRQWULEXWHGWRWKHVXFFHVVRI
DQGXSWRWKHGDWHRIWKHHQVXLQJ$QQXDO*HQHUDO0HHWLQJ \RXU&RPSDQ\
GXULQJWKHEXVLQHVVKRXUVRQZRUNLQJGD\V <RXU 'LUHFWRUV ZLVK WR SODFH RQ UHFRUG WKHLU DSSUHFLDWLRQ
1RQH RI WKH HPSOR\HHV OLVWHG LQ WKH VDLG $QQH[XUH LV D IRU WKH FRQWULEXWLRQ PDGH E\ WKH HPSOR\HHV DW DOO OHYHOV
UHODWLYH RI DQ\ 'LUHFWRU RI WKH &RPSDQ\ 1RQH RI WKH EXW IRU ZKRVH KDUG ZRUN DQG VXSSRUW \RXU &RPSDQ\¶V
HPSOR\HHV KROG E\ KLPVHOI RU DORQJ ZLWK KLV VSRXVH DQG DFKLHYHPHQWVZRXOGQRWKDYHEHHQSRVVLEOH<RXU'LUHFWRUV
DOVR ZLVK WR WKDQN LWV FXVWRPHUV GHDOHUV DJHQWV VXSSOLHUV
GHSHQGHQWFKLOGUHQPRUHWKDQWZRSHUFHQWRIWKHHTXLW\
LQYHVWRUVDQGEDQNHUVIRUWKHLUFRQWLQXHGVXSSRUWDQGIDLWK
VKDUHVRIWKH&RPSDQ\
UHSRVHGLQWKH&RPSDQ\
)RUDQGRQEHKDOIRIWKH%RDUG
*DXWDP+DUL6LQJKDQLD
0XPEDL$SULO &KDLUPDQDQG0DQDJLQJ'LUHFWRU
'LUHFWRUV
5HSRUW 0DQDJHPHQW'LVFXVVLRQDQG$QDO\VLV
$QQH[XUH$
)250120*7
(;75$&72)$118$/5(7851
$VRQ)LQDQFLDO<HDUHQGHGRQ
>3XUVXDQWWR6HFWLRQRIWKH&RPSDQLHV$FWDQGUXOHRIWKH&RPSDQLHV
0DQDJHPHQW $GPLQLVWUDWLRQ5XOHV@
, 5(*,675$7,21 27+(5'(7$,/6
&,1 /0+3/&
5HJLVWUDWLRQ'DWH
1DPHRIWKH&RPSDQ\ 5D\PRQG/LPLWHG
&DWHJRU\6XEFDWHJRU\RIWKH&RPSDQ\ &RPSDQ\/LPLWHGE\6KDUHV,QGLDQ1RQJRYHUQPHQW&RPSDQ\
$GGUHVVRIWKH5HJLVWHUHG2IILFH FRQWDFWGHWDLOV 3ORW1R+1R9LOODJH=DGJDRQ5DWQDJLUL
0DKDUDVKWUD
7HO)D[
:KHWKHUOLVWHGFRPSDQ\ <HV
1DPH$GGUHVV FRQWDFWGHWDLOVRIWKH /LQN,QWLPH,QGLD3ULYDWH/LPLWHG
5HJLVWUDU 7UDQVIHU$JHQWLIDQ\ &3DQQDODO6LON0LOOV&RPSRXQG
/%60DUJ%KDQGXS:HVW0XPEDL
7HO)D[
,, 35,1&,3$/%86,1(66$&7,9,7,(62)7+(&203$1<
$OOWKHEXVLQHVVDFWLYLWLHVFRQWULEXWLQJRUPRUHRIWKHWRWDOWXUQRYHURIWKHFRPSDQ\VKDOOEHVWDWHG
,,, 3$57,&8/$562)+2/',1*68%6,',$5<$1'$662&,$7(&203$1,(6
'LUHFWRUV
5HSRUW 0DQDJHPHQW'LVFXVVLRQDQG$QDO\VLV
6U 1DPHDQG$GGUHVV &,1*,1 +ROGLQJ RIVKDUHV $SSOLFDEOH6HFWLRQ
1R RIWKHFRPSDQ\ 6XEVLGLDU\ +HOG
$VVRFLDWH
6LOYHU6SDUN$SSDUHO/LPLWHG 80+3/& 6XEVLGLDU\ 6HFWLRQ
1HZ+LQG+RXVH1DURWWDP &RPSDQ\
0RUDUMHH0DUJ%DOODUG(VWDWH
0XPEDL
&HOHEUDWLRQV$SSDUHO/LPLWHG 8313/& 6XEVLGLDU\ 6HFWLRQ
3ORW1R+1R9LOODJH &RPSDQ\
=DGJDRQ5DWQDJLUL
6FLVVRUV(QJLQHHULQJ3URGXFWV 80+3/& 6XEVLGLDU\ 6HFWLRQ
/LPLWHG &RPSDQ\
1HZ+LQG+RXVH1DURWWDP
0RUDUMHH0DUJ%DOODUG(VWDWH
0XPEDL
5LQJ3OXV$TXD/LPLWHG 80+3/& 6XEVLGLDU\ 6HFWLRQ
'6LQQDU7DOXND$XG\RJLN &RPSDQ\
9DVDKDW0DU\DGLW9LOODJH
0XVDOJRDQ7DOXND6LQQDU
1DVLN
-.7DODERW/LPLWHG 80+3/& 6XEVLGLDU\ 6HFWLRQ
1HZ+LQG+RXVH1DURWWDP &RPSDQ\
0RUDUMHH0DUJ%DOODUG(VWDWH
0XPEDL
5D\PRQG:RROOHQ2XWHUZHDU 80+3/& 6XEVLGLDU\ 6HFWLRQ
/LPLWHG &RPSDQ\
1HZ+LQG+RXVH1DURWWDP
0RUDUMHH0DUJ%DOODUG(VWDWH
0XPEDL
5D\PRQG/X[XU\&RWWRQV 80+3/& 6XEVLGLDU\ 6HFWLRQ
/LPLWHG &RPSDQ\
1HZ+LQG+RXVH1DURWWDP
0RUDUMHH0DUJ%DOODUG(VWDWH
0XPEDL
)RUHLJQ6XEVLGLDULHV
-D\ND\RUJ$* 6XEVLGLDU\ 6HFWLRQ
4XDL2VWHUYDOG &RPSDQ\
1HXFKDWHO6ZLW]HUODQG
5D\PRQG(XURSH/LPLWHG 6XEVLGLDU\ 6HFWLRQ
%DUUDWW+RXVH2[IRUG &RPSDQ\
6WUHHW/RQGRQ:,&-(
5 $/RJLVWLFV,QF 6XEVLGLDU\ 6HFWLRQ
0XOYDQH\6WUHHW$VKHYLOOH &RPSDQ\
1&86$
$VVRFLDWH&RPSDQLHV
37-D\ND\)LOHV,QGRQHVLD $VVRFLDWH 6HFWLRQ
-O6XNRGRQR*HGDQJDQ &RPSDQ\
6LGRDUMR,QGRQHVLD
-.,QYHVWR7UDGH,QGLD/LPLWHG 80+3/& $VVRFLDWH 6HFWLRQ
1HZ+LQG+RXVH1DURWWDP &RPSDQ\
0RUDUMHH0DUJ%DOODUG(VWDWH
0XPEDL
'LUHFWRUV
5HSRUW 0DQDJHPHQW'LVFXVVLRQDQG$QDO\VLV
6U 1DPHDQG$GGUHVV &,1*,1 +ROGLQJ RIVKDUHV $SSOLFDEOH6HFWLRQ
1R RIWKHFRPSDQ\ 6XEVLGLDU\ +HOG
$VVRFLDWH
5DGKD.UVKQD)LOPV/LPLWHG 80+3/& $VVRFLDWH 6HFWLRQ
0DKLQGUD7RZHUVUG)ORRU &RPSDQ\
%:LQJ3DQGXUDQJ%XGKNDU
0DUJ:RUOL0XPEDL
5RVH(QJLQHHUHG3URGXFWV,QGLD 80+37& $VVRFLDWH 6HFWLRQ
3ULYDWH/LPLWHG &RPSDQ\ ,QGLUHFW
3ORW1R67,&(6LQQDU
6KLUGL5RDG6LQQDU
1DVKLN
'LUHFWRUV
5HSRUW 0DQDJHPHQW'LVFXVVLRQDQG$QDO\VLV
&DWHJRU\RI6KDUHKROGHUV 1RRI6KDUHVKHOGDWWKHEHJLQQLQJRI 1RRI6KDUHVKHOGDWWKHHQGRIWKH\HDU
WKH\HDU>$VRQ$SULO@ >$VRQ0DUFK@ &KDQJH
'HPDW 3K\VLFDO 7RWDO RI7RWDO 'HPDW 3K\VLFDO 7RWDO RI7RWDO GXULQJ
6KDUHV 6KDUHV WKH\HDU
1RQ,QVWLWXWLRQV
D %RGLHV&RUS
L ,QGLDQ
LL 2YHUVHDV
E ,QGLYLGXDOV
L ,QGLYLGXDO
VKDUHKROGHUV
KROGLQJQRPLQDO
VKDUHFDSLWDOXSWR
` ODNK
LL ,QGLYLGXDO
VKDUHKROGHUV
KROGLQJQRPLQDO
VKDUHFDSLWDOLQ
H[FHVVRI` ODNK
F 2WKHUVVSHFLI\
&OHDULQJ0HPEHUV
)RUHLJQ1DWLRQDOV
1RQ5HVLGHQW,QGLDQV
5(3$7
1RQ5HVLGHQW,QGLDQV
1215(3$7
7UXVWV
6XEWRWDO%
7RWDO3XEOLF6KDUHKROGLQJ
% %%
& 6KDUHVKHOGE\&XVWRGLDQ
IRU*'5V $'5V
*UDQG7RWDO$%&
LL 6KDUHKROGLQJRI3URPRWHUV
'LUHFWRUV
5HSRUW 0DQDJHPHQW'LVFXVVLRQDQG$QDO\VLV
6U 6KDUHKROGHU¶V1DPH 6KDUHKROGLQJDWWKHEHJLQQLQJRIWKH 6KDUHKROGLQJDWWKHHQGRIWKH\HDU FKDQJHLQ
1R \HDU VKDUHKROGLQJ
GXULQJWKH\HDU
1RRI RIWRWDO RI6KDUHV 1RRI RIWRWDO RI6KDUHV
6KDUHV 6KDUHV 3OHGJHG 6KDUHV 6KDUHV 3OHGJHG
RIWKH HQFXPEHUHG RIWKH HQFXPEHUHG
FRPSDQ\ WRWRWDO FRPSDQ\ WRWRWDO
VKDUHV VKDUHV
6PW$VKDGHYL
6LQJKDQLD
'U9LMD\SDW
6LQJKDQLD
3RODU,QYHVWPHQWV
/LPLWHG
6PW6KHSKDOL$5XLD
6KUL*DXWDP+DUL
6LQJKDQLD
6KUL5LWZLN5XLD
6KUL$GYDLW5XLD
LLL &KDQJHLQ3URPRWHUV¶6KDUHKROGLQJSOHDVHVSHFLI\LIWKHUHLVQRFKDQJH
-.+HOHQH&XUWLV/LPLWHG
LY 6KDUHKROGLQJ3DWWHUQRIWRSWHQ6KDUHKROGHUV
2WKHUWKDQ'LUHFWRUV3URPRWHUVDQG+ROGHUVRI*'5VDQG$'5V
'LUHFWRUV
5HSRUW 0DQDJHPHQW'LVFXVVLRQDQG$QDO\VLV
Y 6KDUHKROGLQJRI'LUHFWRUVDQG.H\0DQDJHULDO3HUVRQQHO
9 ,1'(%7('1(66
,QGHEWHGQHVVRIWKH&RPSDQ\LQFOXGLQJLQWHUHVWRXWVWDQGLQJDFFUXHGEXWQRWGXHIRUSD\PHQW
`,Q/DFV
3DUWLFXODUV 6HFXUHG 8QVHFXUHG 'HSRVLWV 7RWDO
/RDQV /RDQV ,QGHEWHGQHVV
H[FOXGLQJ
GHSRVLWV
,QGHEWHGQHVVDWWKHEHJLQQLQJRIWKHILQDQFLDO\HDU
L 3ULQFLSDO$PRXQW
LL ,QWHUHVWGXHEXWQRWSDLG
LLL ,QWHUHVWDFFUXHGEXWQRWGXH
7RWDOLLLLLL
&KDQJHLQ,QGHEWHGQHVVGXULQJWKHILQDQFLDO\HDU
$GGLWLRQ
5HGXFWLRQ
1HW&KDQJH
,QGHEWHGQHVVDWWKHHQGRIWKHILQDQFLDO\HDU
L 3ULQFLSDO$PRXQW
LL ,QWHUHVWGXHEXWQRWSDLG
LLL ,QWHUHVWDFFUXHGEXWQRWGXH
7RWDOLLLLLL
'LUHFWRUV
5HSRUW 0DQDJHPHQW'LVFXVVLRQDQG$QDO\VLV
9, 5(081(5$7,212)',5(&7256$1'.(<0$1$*(5,$/3(56211(/
$ 5HPXQHUDWLRQWR0DQDJLQJ'LUHFWRU:KROHWLPH'LUHFWRUDQGRU0DQDJHU
`,Q/DFV
6U 3DUWLFXODUVRI5HPXQHUDWLRQ 1DPHRI0':7'0DQDJHU 7RWDO$PRXQW
1R
&0' :7'
6KUL*DXWDP 6KUL+6XQGHU
+DUL6LQJKDQLD
*URVVVDODU\
D 6DODU\ DV SHU SURYLVLRQV FRQWDLQHG LQ VHFWLRQ RI WKH
,QFRPHWD[$FW
E 9DOXHRISHUTXLVLWHVXVRIWKH,QFRPHWD[$FW
F 3URILWVLQOLHXRIVDODU\XVRIWKH,QFRPHWD[$FW
6WRFN2SWLRQ
6ZHDW(TXLW\
&RPPLVVLRQ
DVRISURILW
RWKHUVVSHFLI\«
2WKHUVSOHDVHVSHFLI\
7RWDO$
% 5HPXQHUDWLRQWRRWKHU'LUHFWRUV
`,Q/DFV
6U 3DUWLFXODUVRI5HPXQHUDWLRQ 1DPHRI'LUHFWRUV 7RWDO$PRXQW
1R
,QGHSHQGHQW'LUHFWRUV 6KUL,' 6KUL1DEDQNXU 6KUL3UDGHHS 6KUL%RPDQ
$JDUZDO *XSWD *XKD ,UDQL
)HHIRUDWWHQGLQJERDUGFRPPLWWHH
PHHWLQJV
&RPPLVVLRQ
2WKHUVSOHDVHVSHFLI\
7RWDO
2WKHU1RQ([HFXWLYH'LUHFWRUV 'U9LMD\SDW 6PW1DZD]
6LQJKDQLD 6LQJKDQLD
)HHIRUDWWHQGLQJERDUGFRPPLWWHH
PHHWLQJV
&RPPLVVLRQ
2WKHUVSOHDVHVSHFLI\
7RWDO
7RWDO0DQDJHULDO5HPXQHUDWLRQ
7RWDO%
'LUHFWRUV
5HSRUW 0DQDJHPHQW'LVFXVVLRQDQG$QDO\VLV
& 5HPXQHUDWLRQWRNH\0DQDJHULDO3HUVRQQHORWKHUWKDQ0'0DQDJHU:7'
`,Q/DFV
6U 3DUWLFXODUVRI5HPXQHUDWLRQ .H\0DQDJHULDO3HUVRQQHO
1R
&6 &)2 7RWDO
6KUL7KRPDV 6KUL0
)HUQDQGHV 6KLYNXPDU
*URVVVDODU\
D 6DODU\DVSHUSURYLVLRQVFRQWDLQHGLQVHFWLRQRIWKH
,QFRPHWD[$FW
E 9DOXHRISHUTXLVLWHVXVRIWKH,QFRPHWD[$FW
F 3URILWVLQOLHXRIVDODU\XVRIWKH,QFRPHWD[$FW
6WRFN2SWLRQ
6ZHDW(TXLW\
&RPPLVVLRQ
DVRISURILW
RWKHUVVSHFLI\«
2WKHUVSOHDVHVSHFLI\
7RWDO
9,, 3(1$/7,(6381,6+0(17&203281',1*2)2))(1&(6
'LUHFWRUV
5HSRUW 0DQDJHPHQW'LVFXVVLRQDQG$QDO\VLV
$QQH[XUH%
6(&5(7$5,$/$8',75(3257
)257+(),1$1&,$/<($5(1'('210$5&+
>3XUVXDQWWR6HFWLRQRIWKH&RPSDQLHV$FWDQG5XOH1RRIWKH&RPSDQLHV$SSRLQWPHQW
DQG5HPXQHUDWLRQRI0DQDJHULDO3HUVRQQHO5XOHV@
7R
7KH0HPEHUV K 7KH 6HFXULWLHV DQG ([FKDQJH %RDUG RI ,QGLD %X\EDFN
5D\PRQG/LPLWHG RI 6HFXULWLHV 5HJXODWLRQV 1RW DSSOLFDEOH WR WKH
3ORW1R+1R &RPSDQ\GXULQJDXGLWSHULRG
9LOODJHă=DGJDRQ YL :HKDYHUHOLHGRQWKHUHSUHVHQWDWLRQPDGHE\WKH&RPSDQ\
5DWQDJLULă DQG LWV 2IILFHUV IRU V\VWHPV DQG PHFKDQLVP IRUPHG E\ WKH
&RPSDQ\IRUFRPSOLDQFHVXQGHURWKHUDSSOLFDEOH$FWV/DZV
0DKDUDVKWUD
DQG5HJXODWLRQVWRWKH&RPSDQ\7KHOLVWRIPDMRUKHDGJURXSV
, KDYH FRQGXFWHG WKH VHFUHWDULDO DXGLW RI WKH FRPSOLDQFH RI RI$FWV/DZVDQG5HJXODWLRQVDVDSSOLFDEOHWRWKH&RPSDQ\LV
DSSOLFDEOH VWDWXWRU\ SURYLVLRQV DQG WKH DGKHUHQFH WR JRRG JLYHQLQ$QQH[XUH,
FRUSRUDWH SUDFWLFHV E\ 5D\PRQG /LPLWHG KHUHLQDIWHU FDOOHG WKH
&RPSDQ\ 6HFUHWDULDO $XGLW ZDV FRQGXFWHG LQ D PDQQHU WKDW ,KDYHDOVRH[DPLQHGFRPSOLDQFHZLWKWKHDSSOLFDEOHFODXVHV
SURYLGHG PH D UHDVRQDEOH EDVLV IRU HYDOXDWLQJ WKH FRUSRUDWH RIWKHIROORZLQJ
FRQGXFWVVWDWXWRU\ FRPSOLDQFHV DQG H[SUHVVLQJ P\ RSLQLRQ L 6HFUHWDULDO 6WDQGDUGV LVVXHG E\ 7KH ,QVWLWXWH RI
WKHUHRQ &RPSDQ\6HFUHWDULHVRI,QGLD
%DVHGRQP\YHULILFDWLRQRIWKH&RPSDQ\¶VERRNVSDSHUVPLQXWH LL 7KH/LVWLQJ$JUHHPHQWVHQWHUHGLQWRE\WKH&RPSDQ\
ERRNVIRUPVDQGUHWXUQVILOHGDQGRWKHUUHFRUGVPDLQWDLQHGE\WKH ZLWKWKH6WRFN([FKDQJHV
&RPSDQ\DQGDOVRWKHLQIRUPDWLRQSURYLGHGE\WKH&RPSDQ\LWV
RIILFHUVDJHQWVDQGDXWKRUL]HGUHSUHVHQWDWLYHVGXULQJWKHFRQGXFW 'XULQJ WKH SHULRG XQGHU UHYLHZ WKH &RPSDQ\ KDV FRPSOLHG
RIVHFUHWDULDODXGLW,KHUHE\UHSRUWWKDWLQP\RSLQLRQWKH&RPSDQ\ ZLWK WKH SURYLVLRQV RI WKH $FW 5XOHV 5HJXODWLRQV *XLGHOLQHV
KDV GXULQJ WKH DXGLW SHULRG FRYHULQJ WKH )LQDQFLDO <HDU HQGHG 6WDQGDUGVHWFPHQWLRQHGDERYH
RQ 0DUFK FRPSOLHG ZLWK WKH VWDWXWRU\ SURYLVLRQV OLVWHG ,IXUWKHUUHSRUWWKDW
KHUHXQGHUDQGDOVRWKDWWKH&RPSDQ\KDVSURSHU%RDUGSURFHVVHV 7KH %RDUG RI 'LUHFWRUV RI WKH &RPSDQ\ LV GXO\ FRQVWLWXWHG ZLWK
DQGFRPSOLDQFHPHFKDQLVPLQSODFHWRWKHH[WHQWLQWKHPDQQHU SURSHU EDODQFH RI ([HFXWLYH 'LUHFWRUV 1RQ([HFXWLYH 'LUHFWRUV
DQGVXEMHFWWRWKHUHSRUWLQJPDGHKHUHLQDIWHU DQG,QGHSHQGHQW'LUHFWRUV7KHFKDQJHVLQWKHFRPSRVLWLRQRIWKH
,KDYHH[DPLQHGWKHERRNVSDSHUVPLQXWHERRNVIRUPVDQGUHWXUQV %RDUGRI'LUHFWRUVWKDWWRRNSODFHGXULQJWKHSHULRGXQGHUUHYLHZ
ILOHGDQGRWKHUUHFRUGVPDLQWDLQHGE\WKH&RPSDQ\IRUWKHILQDQFLDO ZHUHFDUULHGRXWLQFRPSOLDQFHZLWKWKHSURYLVLRQVRIWKH$FW
\HDUHQGHGRQ0DUFKDFFRUGLQJWRWKHSURYLVLRQVRI
$GHTXDWH QRWLFH LV JLYHQ WR DOO GLUHFWRUV WR VFKHGXOH WKH %RDUG
L 7KH&RPSDQLHV$FWWKH$FWDQGWKH5XOHVPDGHWKHUH 0HHWLQJV DQG DJHQGD DQG GHWDLOHG QRWHV RQ DJHQGD ZHUH VHQW
XQGHU DW OHDVW VHYHQ GD\V LQ DGYDQFH DQG D V\VWHP H[LVWV IRU VHHNLQJ
LL 7KH 6HFXULWLHV &RQWUDFWV 5HJXODWLRQ $FW µ6&5$¶ DQG DQGREWDLQLQJIXUWKHULQIRUPDWLRQDQGFODULILFDWLRQVRQWKHDJHQGD
WKHUXOHVPDGHWKHUHXQGHU LWHPV EHIRUH WKH PHHWLQJ DQG IRU PHDQLQJIXO SDUWLFLSDWLRQ DW WKH
LLL 7KH 'HSRVLWRULHV $FW DQG WKH 5HJXODWLRQV DQG %\HODZV PHHWLQJ 0DMRULW\ GHFLVLRQ LV FDUULHG WKURXJK ZKLOH WKH GLVVHQWLQJ
IUDPHGWKHUHXQGHU PHPEHUV¶YLHZVLIDQ\DUHFDSWXUHGDQGUHFRUGHGDVSDUWRIWKH
LY )RUHLJQ([FKDQJH0DQDJHPHQW$FWDQGWKHUXOHVDQG PLQXWHV
UHJXODWLRQVPDGHWKHUHXQGHUWRWKHH[WHQWRI)RUHLJQ'LUHFW , IXUWKHU UHSRUW WKDW WKHUH DUH DGHTXDWH V\VWHPV DQG SURFHVVHV LQ
,QYHVWPHQW2YHUVHDV'LUHFW,QYHVWPHQW([WHUQDO&RPPHUFLDO WKH &RPSDQ\ FRPPHQVXUDWH ZLWK WKH VL]H DQG RSHUDWLRQV RI WKH
%RUURZLQJV &RPSDQ\WRPRQLWRUDQGHQVXUHFRPSOLDQFHZLWKDSSOLFDEOHODZV
Y 7KHIROORZLQJ5HJXODWLRQVDQG*XLGHOLQHVSUHVFULEHGXQGHUWKH UXOHVUHJXODWLRQVDQGJXLGHOLQHV
6HFXULWLHVDQG([FKDQJH%RDUGRI,QGLD$FWµ6(%,$FW¶ ,IXUWKHUUHSRUWWKDWGXULQJWKHDXGLWSHULRGWKH&RPSDQ\KDVSDVVHG
D 7KH 6HFXULWLHV DQG ([FKDQJH %RDUG RI ,QGLD 6XEVWDQWLDO IROORZLQJVSHFLDOUHVROXWLRQVZKLFKDUHKDYLQJPDMRUEHDULQJRQWKH
$FTXLVLWLRQRI6KDUHVDQG7DNHRYHUV5HJXODWLRQV FRPSDQ\¶V DIIDLUV LQ SXUVXDQFH RI WKH DERYH UHIHUUHG ODZV UXOHV
E 7KH6HFXULWLHVDQG([FKDQJH%RDUGRI,QGLD3URKLELWLRQRI UHJXODWLRQVJXLGHOLQHVVWDQGDUGVHWF
,QVLGHU7UDGLQJ5HJXODWLRQV ,VVXHRIGHEHQWXUHVXQGHU6HFWLRQDQGRIWKH&RPSDQLHV
F 7KH 6HFXULWLHV DQG ([FKDQJH %RDUG RI ,QGLD ,VVXH RI $FW
&DSLWDODQG'LVFORVXUH5HTXLUHPHQWV5HJXODWLRQV ,QFUHDVH LQ ERUURZLQJ OLPLWV XQGHU 6HFWLRQ F RI WKH
G 7KH 6HFXULWLHV DQG ([FKDQJH %RDUG RI ,QGLD (PSOR\HH &RPSDQLHV$FW
6WRFN 2SWLRQ 6FKHPH DQG (PSOR\HH 6WRFN 3XUFKDVH
6HOOOHDVHRUGLVSRVHRIIZKROHRUVXEVWDQWLDOO\WKHZKROHRIWKH
6FKHPH *XLGHOLQHV 1RW DSSOLFDEOH WR WKH
XQGHUWDNLQJ XQGHU 6HFWLRQ D RI WKH &RPSDQLHV $FW
&RPSDQ\GXULQJDXGLWSHULRG
H 7KH 6HFXULWLHV DQG ([FKDQJH %RDUG RI ,QGLD ,VVXH DQG
/LVWLQJRI'HEW6HFXULWLHV5HJXODWLRQV )RU$VKLVK%KDWW $VVRFLDWHV
I 7KH 6HFXULWLHV DQG ([FKDQJH %RDUG RI ,QGLD 5HJLVWUDUV $VKLVK%KDWW
WRDQ,VVXHDQG6KDUH7UDQVIHU$JHQWV5HJXODWLRQV 3UDFWLFLQJ&RPSDQ\6HFUHWDU\
UHJDUGLQJWKH&RPSDQLHV$FWDQGGHDOLQJZLWKFOLHQW )&61R
J 7KH 6HFXULWLHV DQG ([FKDQJH %RDUG RI ,QGLD 'HOLVWLQJ RI &31R
(TXLW\ 6KDUHV 5HJXODWLRQV 1RW DSSOLFDEOH WR WKH 3ODFH7KDQH
&RPSDQ\GXULQJDXGLWSHULRGDQG 'DWH$SULO
'LUHFWRUV
5HSRUW 0DQDJHPHQW'LVFXVVLRQDQG$QDO\VLV
$11(;85(,
/LVWRIDSSOLFDEOHODZVWRWKH&RPSDQ\
8QGHUWKH0DMRU*URXSDQG+HDGDUHDVIROORZV
)DFWRULHV$FW
,QGXVWULHV'HYHORSPHQW 5HJXODWLRQ$FW
/DERXU/DZVDQGRWKHULQFLGHQWDOODZVUHODWHGWRODERXUDQGHPSOR\HHVDSSRLQWHGE\WKH&RPSDQ\HLWKHURQLWVSD\UROORURQ
FRQWUDFWXDOEDVLVDVUHODWHGWRZDJHVJUDWXLW\SURYLGHQWIXQG(6,&FRPSHQVDWLRQHWF
$FWVSUHVFULEHGXQGHUSUHYHQWLRQDQGFRQWURORISROOXWLRQ
$FWVSUHVFULEHGXQGHU(QYLURQPHQWDOSURWHFWLRQ
$FWVDVSUHVFULEHGXQGHU'LUHFW7D[DQG,QGLUHFW7D[
/DQG5HYHQXHODZVRIUHVSHFWLYH6WDWHV
/DERXU:HOIDUH$FWRIUHVSHFWLYH6WDWHV
7UDGH0DUNV$FW &RS\5LJKW$FW
7KH/HJDO0HWURORJ\$FW
$FWVDVSUHVFULEHGXQGHU6KRSDQG(VWDEOLVKPHQW$FWRIYDULRXVORFDODXWKRULWLHV
)RU$VKLVK%KDWW $VVRFLDWHV
$VKLVK%KDWW
3UDFWLFLQJ&RPSDQ\6HFUHWDU\
)&61R
&31R
3ODFH7KDQH
'DWH$SULO
$QQH[XUH&
$118$/5(3257'(7$,/62)7+(&65$&7,9,7,(6
$ EULHI RXWOLQH RI WKH &RPSDQ\¶V &65 SROLF\ LQFOXGLQJ 3UHVFULEHG&65([SHQGLWXUHWZRSHUFHQWRIWKHDPRXQWDV
RYHUYLHZ RI SURMHFWV RU SURJUDPV SURSRVHG WR EH LQLWHPDERYH
XQGHUWDNHQ DQG D UHIHUHQFH WR WKH ZHEOLQN WR WKH &65
SROLF\DQGSURMHFWVRUSURJUDPV 7KH&RPSDQ\LVUHTXLUHGWRVSHQG` ODFWRZDUGV&65IRU
WKH)LQDQFLDO<HDU
7KH&653ROLF\ZDVDSSURYHGE\WKH%RDUGRI'LUHFWRUVDW
LWV0HHWLQJKHOGRQ-XO\DQGKDVEHHQXSORDGHG 'HWDLOVRI&65VSHQWGXULQJWKH)LQDQFLDO<HDU
RQWKH&RPSDQ\¶VZHEVLWH $JLVWRIWKHSURJUDPVWKDWWKH D 7RWDODPRXQWWREHVSHQWIRUWKH)LQDQFLDO<HDU` ODF
&RPSDQ\FDQXQGHUWDNHXQGHUWKH&65SROLF\LVPHQWLRQHG E $PRXQWXQVSHQWLIDQ\1,/
EHORZ
F 0DQQHULQZKLFKWKHDPRXQWVSHQWGXULQJWKHILQDQFLDO
7KH ZHE OLQN LV KWWSZZZUD\PRQGLQFUSROLFLHVFVUS \HDUGHWDLOHGEHORZ
FVUBSROLF\KWPO
,Q DFFRUGDQFH ZLWK WKH &RPSDQ\¶V &65 SROLF\ DQG
7KH&RPSDQ\KDGSURSRVHGWRXQGHUWDNHDFWLYLWLHVUHODWLQJ LQFRPSOLDQFHZLWKWKH&RPSDQLHV&RUSRUDWH6RFLDO
WR UXUDO GHYHORSPHQW LQFOXGLQJ OLYHVWRFN GHYHORSPHQW 5HVSRQVLELOLW\ 3ROLF\ 5XOHV 5D\PRQG /LPLWHG
FRPPXQLW\ LUULJDWLRQ ZDWHU FRQVHUYDWLRQ HWF IRU WKH KDV FROODERUDWHG ZLWK WKH RWKHU JURXS FRPSDQLHV
)QDQFLDO<HDU DQG KDYH XQGHUWDNHQ &65 SURMHFWV 'XULQJ WKH \HDU
7KH DFWLYLWLHV DQG IXQGLQJ DUH PRQLWRUHG LQWHUQDOO\ E\ WKH XQGHU UHYLHZ WKH &65 &RPPLWWHH LGHQWLILHG D SURMHFW
&RPSDQ\ ZLWK 1RQ3URILW 2UJDQLVDWLRQ ZKLFK LV UHJLVWHUHG DV
3XEOLF&KDULWDEOH7UXVWZLWKWKH&KDULW\&RPPLVVLRQHU
7KH&RPSRVLWLRQRIWKH&65&RPPLWWHH %RPED\
6KUL,'$JDUZDO&KDLUPDQ,QGHSHQGHQW'LUHFWRU 7KH,QWHJUDWHG/LYHVWRFN'HYHORSPHQW&HQWUHV,/'&V
6KUL3UDGHHS*XKD,QGHSHQGHQW'LUHFWRU DUHRSHQHGDWFHQWUHVLQWKH6WDWHVRI0DKDUDVKWUD
0DGK\D3UDGHVKDQG&KKDWWLVJDUKDVD&65LQLWLDWLYH
6KUL%RPDQ,UDQL,QGHSHQGHQW'LUHFWRU RIWKH&RPSDQ\(DFKFHQWUHFDWHUVWRWRYLOODJHV
6PW1DZD]*DXWDP6LQJKDQLD1RQ([HFXWLYH'LUHFWRU ZLWKWREUHHGDEOHFDWWOH7KH,/'&SURJUDP
LV DLPHG DW LPSURYLQJ SURGXFWLRQ RI PLON UHGXFLQJ
$YHUDJHQHWSURILWRIWKH&RPSDQ\IRUODVWWKUHH)LQDQFLDO
PDOQXWULWLRQFUHDWLQJHPSOR\PHQWIRUORFDO\RXWKDQG
<HDUV
DOOHYLDWLRQ RI SRYHUW\ 7KH ,/'& SURJUDP LV VXSSRUWHG
7KHDYHUDJH1HW3URILWIRUWKHODVWWKUHH\HDUVLV` ODF E\DJURXSRITXDOLILHGYHWHULQDU\GRFWRUVDQG0RELOH
9HWHULQDU\9HKLFOHV
'LUHFWRUV
5HSRUW 0DQDJHPHQW'LVFXVVLRQDQG$QDO\VLV
7KHGHWDLOVDUHDVXQGHU `,Q/DFV
6U &65SURMHFWRU 6HFWRULQ 3URMHFWVRUSURJUDPV $PRXQW $PRXQWVSHQW &XPXODWLYH $PRXQW
1R DFWLYLW\LGHQWLILHG ZKLFKWKH /RFDODUHDRURWKHU RXWOD\ RQWKHSURMHFWV H[SHQGLWXUH VSHQW'LUHFW
SURMHFWLV EXGJHW SURJUDPV6XE XSWRWRWKH RUWKURXJK
FRYHUHG 6SHFLI\WKH SURMHFWRU KHDGV UHSRUWLQJ LPSOHPHQWLQJ
6WDWHDQGGLVWULFW SURJUDPV SHULRG DJHQF\
ZKHUHSURMHFWV 'LUHFW
ZLVH H[SHQGLWXUH
RUSURJUDPVZDV
XQGHUWDNHQ RQSURMHFWV
RYHUKHDGV
&KDLUPDQDQG0DQDJLQJ'LUHFWRU &KDLUPDQRI&65&RPPLWWHH
$SULO
0XPEDL
&217(1762)&6532/,&<
DSSURYHGE\WKH%RDUGRI'LUHFWRUVRQ-XO\
2XUDLPLVWREHRQHRIWKHPRVWUHVSHFWHG&RPSDQLHVLQ,QGLDGHOLYHULQJVXSHULRUDQGVXVWDLQDEOHYDOXHWRDOORXUFXVWRPHUVEXVLQHVV
SDUWQHUVVKDUHKROGHUVHPSOR\HHVDQGKRVWFRPPXQLWLHV
7KH&65LQLWLDWLYHVIRFXVRQKROLVWLFGHYHORSPHQWRIKRVWFRPPXQLWLHVDQGFUHDWHVRFLDOHQYLURQPHQWDODQGHFRQRPLFYDOXHWRWKH
VRFLHW\
7KH&RPSDQ\¶VFRPPLWPHQWWR&65SURMHFWVDQGSURJUDPVZLOOEHE\LQYHVWLQJUHVRXUFHVLQWRDQ\RIWKHIROORZLQJDUHDV
9 ,PSURYLQJWKHTXDOLW\RIOLIHLQUXUDODUHDV
9 (UDGLFDWLQJKXQJHUSRYHUW\DQGPDOQXWULWLRQ
9 3URPRWLQJKHDOWKFDUHLQFOXGLQJSUHYHQWLYHKHDOWKFDUH
9 (PSOR\PHQWHQKDQFLQJYRFDWLRQDOVNLOOV
9 3URPRWLRQRIHGXFDWLRQLQFOXGLQJLQYHVWPHQWLQWHFKQRORJ\LQVFKRROV
9 (QVXULQJHQYLURQPHQWDOVXVWDLQDELOLW\LQFOXGLQJPHDVXUHVIRUUHGXFLQJLQHTXDOLWLHVIDFHGE\VRFLDOO\DQGHFRQRPLFDOO\EDFNZDUG
JURXSV
9 3URPRWLQJVSRUWVLQFOXGLQJUXUDODQG2O\PSLFVSRUWV
9 &RQWULEXWLRQWRIXQGVIRUSURPRWLQJWHFKQRORJ\
9 ,QYHVWLQJLQYDULRXVUXUDOGHYHORSPHQWSURMHFWV
9 &RQWULEXWLQJWRWKH3ULPH0LQLVWHU¶V1DWLRQDO5HOLHI)XQGRUDQ\RWKHUIXQGVHWXSE\WKH&HQWUDO*RYHUQPHQWIRUGHYHORSPHQW
DQGUHOLHIDQG
9 2WKHUDUHDVDSSURYHGE\WKH&65&RPPLWWHHWKDWDUHFRYHUHGLQWKH&655XOHVDVDPHQGHGIURPWLPHWRWLPH
'LUHFWRUV
5HSRUW 0DQDJHPHQW'LVFXVVLRQDQG$QDO\VLV
$QQH[XUH' LL 7KH EHQHILWV GHULYHG OLNH SURGXFW LPSURYHPHQW FRVW
UHGXFWLRQSURGXFWGHYHORSPHQWRULPSRUWVXEVWLWXWLRQ
&RQVHUYDWLRQ RI (QHUJ\ 7HFKQRORJ\ $EVRUSWLRQ DQG )RUHLJQ
([FKDQJH(DUQLQJVDQG2XWJR 5D\PRQG KDV DOZD\V VHW D VWDQGDUG WKDW FDQ PDWFK
DQ\ JOREDO FRPSDQ\ LQ HQGWRHQG WH[WLOH SURGXFWV
7KHLQIRUPDWLRQXQGHU6HFWLRQPRIWKH&RPSDQLHV$FW DQG VROXWLRQV <RXU &RPSDQ\¶V '1$ LV SURYLGLQJ
UHDG ZLWK 5XOH RI WKH &RPSDQLHV $FFRXQWV 5XOHV LQQRYDWLYHSURGXFWVEXQGOHGZLWKZRUOGFODVVFUHDWLYLW\
IRUWKH\HDUHQGHG0DUFKLVJLYHQKHUHEHORZDQG DQGTXDOLW\6RPHDUHDVZKHUHWKHEHQHILWVKDYHEHHQ
IRUPVSDUWRIWKH'LUHFWRUV¶5HSRUW GHULYHGDUH
$ &216(59$7,212)(1(5*< (/(*$17(&2//(&7,21
, ,Q OLQH ZLWK WKH &RPSDQ\¶V FRPPLWPHQW WRZDUGV (OHJDQWHUDQJHZDVGHYHORSHGXVLQJLQQRYDWLYHILEHUV
FRQVHUYDWLRQ RI HQHUJ\ DOO XQLWV FRQWLQXH ZLWK WKHLU EOHQGV DQG ILQLVKHV 7KH SURGXFW PL[ ZDV D SHUIHFW
HIIRUWV DLPHG DW LPSURYLQJ HQHUJ\ HIILFLHQF\ WKURXJK UHSUHVHQWDWLRQ RI FUHDWLYLW\ IXQFWLRQDO EHQHILWV DQG
LPSURYHG RSHUDWLRQDO DQG PDLQWHQDQFH SUDFWLFHV LQQRYDWLRQH[SHUWLVHZKLFKJDYHDPDUNHWOHDGHUVKLSLQ
7KH VWHSV WDNHQ LQ WKLV GLUHFWLRQ DW WKH WH[WLOH XQLWV DW YDULRXVFDWHJRULHV7KHSURGXFWRIIHULQJVZHUHXQLTXH
&KKLQGZDUD9DSLDQG-DOJDRQDUHDVXQGHU ZKLFKPDGHWKHHQWLUHUDQJHGHPDQGLQJ
Ć $&7,9( 3/86 ă 3URDFWLYH WHPSHUDWXUH UHJXODWLQJ
Ć 5HGXFLQJSRZHUFRQVXPSWLRQE\SURYLGLQJ9)'LQ
IDEULF
FRROLQJWRZHUSXPSRI&337)2 5LQJ)UDPH
Ć 6($&(// )LEHU HQULFKHG ZLWK VLOYHU NQRZQ IRU
Ć 5HSODFHPHQW RI LQHIILFLHQW PRWRU ZLWK HQHUJ\
DQWLEDFWHULDOSURSHUW\
HIILFLHQWPRWRUV
Ć 1$785$/ 675(7&+ ,QEXLOW VWUHWFK LQ WKH IDEULF
Ć 5HSODFHPHQW RI +309 OLJKWLQJV ZLWK /(' W\SH ZLWKRXWWKHXVDJHRI/\FUDIRUFRPIRUWDQGEHWWHU
IL[WXUHV SHUIRUPDQFH
Ć ,QVWDOOLQJ VFUHZ FRPSUHVVRUV ZLWK YDULDEOH 6,/.<728&+),1,6+
IUHTXHQF\GULYH
$ SUHPLXP 3RO\ ZRRO FROOHFWLRQ ZLWK VXSHU V ZRRO
Ć ,QVWDOODWLRQ RI SODQW FRQGHQVDWH UHFRYHU\ V\VWHP FUDIWHG ZLWK VLON\ KDQGOH DQG JODPRURXV VKLQ\ ORRN
IRUZDWHUFRQVHUYDWLRQ 7KH EULOOLDQW SURGXFWV ZLWK SUHPLXP WRXFK DQG IHHO
DYDLODEOHLQWUHQG\FRORXUVDQGGHVLJQV
Ć ,QVWDOODWLRQ RI DXWRPDWLF FXWRII LQ 6XFWLRQ PRWRU
RI*LOO%R[LQ&RPELQJDQGOLJKWLQJV\VWHPLQ<DUQ 678',2/,1(1
URRP $ SRZHUIXO UDQJH RI OLQHQ ZLWK YDULRXV LQQRYDWLYH
Ć ,QVWDOOLQJ RI HIILFLHQW UHFRYHU\ HTXLSPHQW IRU FRQFHSWVDQGZLGHSURGXFWSRUWIROLRZLWKRXWVWDQGLQJ
FRROLQJZDWHUIRUVWHDPLQJPDFKLQHV SURGXFWTXDOLW\7KLVFROOHFWLRQZLWKQHZFRQFHSWVOLNH
GHQLP ORRN HPEURLGHUHG GHVLJQV DQG YDULRXV SULQWV
,, 7KHVWHSVWDNHQE\WKHFRPSDQ\IRUXWLOLVLQJDOWHUQDWH DQG MDFTXDUG KDYH FKDQJHG ORRN RI /LQHQ WR QH[W
VRXUFHV RI HQHUJ\ 'XULQJ WKH \HDU XQGHU UHYLHZ WKH /HYHO7KLVSURGXFWKDVUHFHLYHGHQFRXUDJLQJUHVSRQVH
&RPSDQ\XWLOLVHGVRODUHQHUJ\IRUZDWHUKHDWLQJ IURPRXUFXVWRPHUV
,,, 7KH &DSLWDO LQYHVWPHQW RQ HQHUJ\ FRQVHUYDWLRQ 6252129$
HTXLSPHQW` ODF $Q LQQRYDWLYH HFRIULHQGO\ SURGXFW PDGH IURP FRUQ
% 7(&+12/2*<$%625%7,21 ILEUH ZDV ODXQFKHG IRU WKH ILUVW WLPH LQ ,QGLD KDYLQJ
SURSHUW\ RI H[WUD FRPIRUW DQG JHQWOH VKHHQ 7KH
L 7KHHIIRUWVPDGHE\WKH&RPSDQ\WRZDUGVWHFKQRORJ\
PL[WXUHRIVRIWKDQGOHVWUHWFKDQGH[FHOOHQWUHFRYHU\
DEVRUSWLRQGXULQJWKH\HDUXQGHUUHYLHZDUH SURSHUW\PDGHWKHSURGXFWGHPDQGLQJ
Ć &RQYHUVLRQRI'&WR$&GULYHRQVWHQWHUPDFKLQH LLL ,Q FDVH RI LPSRUWHG WHFKQRORJ\ LPSRUWHG GXULQJ WKH
DQG717PDFKLQH ODVW WKUHH \HDUV UHFNRQHG IURP WKH EHJLQQLQJ RI WKH
Ć 5HSODFHPHQWRI:7OLJKWE\:/('7XEHOLJKW ILQDQFLDO\HDU127$33/,&$%/(
DQGLQVWDOODWLRQRIOLJKWSLSH LY 7KH H[SHQGLWXUH LQFXUUHG RQ 5HVHDUFK DQG
Ć 8SJUDGDWLRQRI9LEUR&RPSDFW0DFKLQHVWHQWHU 'HYHORSPHQW
DQGVXSHUILQLVKPDFKLQH 7KH &RPSDQ\ KDV LQFXUUHG DQ H[SHQGLWXUH RI `
FURUHWRZDUGV5HVHDUFKDQG'HYHORSPHQW
Ć ,QVWDOODWLRQ RI (OHFWUR &RDJXODWLRQ 6\VWHP LQ WKH
(73 & )25(,*1(;&+$1*(($51,1*6$1'287*2
Ć ,QVWDOODWLRQRIZLQGWXUERYHQWLODWRUV 'XULQJ WKH \HDU XQGHU UHYLHZ IRUHLJQ H[FKDQJH HDUQLQJV
ZHUH` FURUH3UHYLRXV<HDU` FURUHH[FOXGLQJ
Ć 'HYHORSHG FRPSXWHU EDVHG FRORXU ZHLJKLQJ GHHPHGH[SRUWVDQGIRUHLJQH[FKDQJHRXWJRZDV`
V\VWHPIRUDFFXUDWHZHLJKLQJRIG\HV FURUH3UHYLRXV<HDU` FURUH
'LUHFWRUV
5HSRUW 0DQDJHPHQW'LVFXVVLRQDQG$QDO\VLV
&25325$7(*29(51$1&(5(3257 *29(51$1&(6758&785(
7KH 'LUHFWRUV SUHVHQW WKH &RPSDQ\¶V 5HSRUW RQ &RUSRUDWH 7KH&RUSRUDWH*RYHUQDQFHVWUXFWXUHDW5D\PRQGLVDVIROORZV
*RYHUQDQFHIRUWKH\HDUHQGHG0DUFK %RDUG RI 'LUHFWRUV 7KH %RDUG LV HQWUXVWHG ZLWK WKH
XOWLPDWH UHVSRQVLELOLW\ RI WKH PDQDJHPHQW GLUHFWLRQV
&203$1<¶63+,/2623+<
DQG SHUIRUPDQFH RI WKH &RPSDQ\ $V LWV SULPDU\ UROH
5D\PRQG¶V³7KH&RPSDQ\´*RYHUQDQFHSKLORVRSK\LVEDVHG LV ILGXFLDU\ LQ QDWXUH WKH %RDUG SURYLGHV OHDGHUVKLS
RQWUXVWHHVKLSWUDQVSDUHQF\DQGDFFRXQWDELOLW\$VDFRUSRUDWH VWUDWHJLF JXLGDQFH REMHFWLYH DQG LQGHSHQGHQW YLHZ
FLWL]HQ RXU EXVLQHVV IRVWHUV D FXOWXUH RI HWKLFDO EHKDYLRU DQG WR WKH &RPSDQ\¶V PDQDJHPHQW ZKLOH GLVFKDUJLQJ LWV
GLVFORVXUHV DLPHG DW EXLOGLQJ WUXVW RI RXU VWDNHKROGHUV 7KH UHVSRQVLELOLWLHVWKXVHQVXULQJWKDWWKHPDQDJHPHQWDGKHUHV
&RPSDQ\¶V &RGH RI %XVLQHVV &RQGXFW DQG (WKLFV 5D\PRQG WRHWKLFVWUDQVSDUHQF\DQGGLVFORVXUH
&RGH RI &RQGXFW IRU 3UHYHQWLRQ RI ,QVLGHU 7UDGLQJ DQG WKH
&RPPLWWHHV RI WKH %RDUG 7KH %RDUG KDV FRQVWLWXWHG WKH
&KDUWHUă%XVLQHVVIRU3HDFHDUHDQH[WHQVLRQRIRXUYDOXHVDQG
IROORZLQJ&RPPLWWHHVYL]$XGLW&RPPLWWHH5HPXQHUDWLRQ
UHIOHFW RXU FRPPLWPHQW WR HWKLFDO EXVLQHVV SUDFWLFHV LQWHJULW\
DQG1RPLQDWLRQ&RPPLWWHH&RUSRUDWH6RFLDO5HVSRQVLELOLW\
DQG UHJXODWRU\ FRPSOLDQFHV 7KH &RPSDQ\¶V JRYHUQDQFH
&65 &RPPLWWHH DQG WKH &RPPLWWHH RI 'LUHFWRUV ZKLFK
IUDPHZRUNLVEDVHGRQWKHIROORZLQJSULQFLSOHV
DOVRDFWDVWKH6WDNHKROGHUV5HODWLRQVKLS&RPPLWWHH(DFK
x $SSURSULDWHFRPSRVLWLRQDQGVL]HRIWKH%RDUGZLWKHDFK RI WKH VDLG &RPPLWWHH KDV EHHQ PDQGDWHG WR RSHUDWH
PHPEHUEULQJLQJLQH[SHUWLVHLQWKHLUUHVSHFWLYHGRPDLQV ZLWKLQDJLYHQIUDPHZRUN
x $YDLODELOLW\RILQIRUPDWLRQWRWKHPHPEHUVRIWKH%RDUGDQG 7+(%2$5'2)',5(&7256
%RDUG&RPPLWWHHVWRHQDEOHWKHPGLVFKDUJHWKHLUILGXFLDU\
GXWLHV 6L]HDQG&RPSRVLWLRQRIWKH%RDUG
&RUSRUDWH*RYHUQDQFH5HSRUW
,QGHSHQGHQW'LUHFWRUV ,QIRUPDWLRQJLYHQWRWKH%RDUG
7KH1RQ([HFXWLYH,QGHSHQGHQW'LUHFWRUVIXOILOWKHFRQGLWLRQVRI 7KH&RPSDQ\SURYLGHVWKHLQIRUPDWLRQDVVHWRXWLQ&ODXVHRI
LQGHSHQGHQFHVSHFLILHGLQ6HFWLRQRIWKH&RPSDQLHV$FW WKH/LVWLQJ$JUHHPHQWWRWKH%RDUGDQGWKH%RDUG&RPPLWWHHV
DQG5XOHVPDGHWKHUHXQGHUDQGPHHWZLWKUHTXLUHPHQWRI WR WKH H[WHQW LW LV DSSOLFDEOH DQG UHOHYDQW 6XFK LQIRUPDWLRQ LV
&ODXVHRIWKH/LVWLQJ$JUHHPHQWHQWHUHGLQWRZLWKWKH6WRFN VXEPLWWHGHLWKHUDVSDUWRIWKHDJHQGDSDSHUVLQDGYDQFHRIWKH
([FKDQJHV $ IRUPDO OHWWHU RI DSSRLQWPHQW WR ,QGHSHQGHQW UHVSHFWLYHPHHWLQJVRUE\ZD\RISUHVHQWDWLRQVDQGGLVFXVVLRQV
'LUHFWRU DV SURYLGHG LQ &RPSDQLHV $FW DQG WKH /LVWLQJ GXULQJWKHPHHWLQJ
$JUHHPHQWKDVEHHQLVVXHGDQGGLVFORVHGRQWKHZHEVLWHRIWKH
3RVW0HHWLQJ0HFKDQLVP
&RPSDQ\YL]ZZZUD\PRQGLQ
7KH LPSRUWDQW GHFLVLRQV WDNHQ DW WKH %RDUG%RDUG &RPPLWWHH
%RDUG0HHWLQJV
PHHWLQJV DUH FRPPXQLFDWHG WR WKH FRQFHUQHG GHSDUWPHQWV
7KH %RDUG PHHWV DW UHJXODU LQWHUYDOV WR GLVFXVV DQG GHFLGH RQ GLYLVLRQV
EXVLQHVVVWUDWHJLHVSROLFLHVDQGUHYLHZWKHILQDQFLDOSHUIRUPDQFH
%RDUG6XSSRUW
RI WKH &RPSDQ\ DQG LWV VXEVLGLDULHV 7KH %RDUG 0HHWLQJV DUH
SUHVFKHGXOHG DQG D WHQWDWLYH DQQXDO FDOHQGDU RI WKH %RDUG 7KH &RPSDQ\ 6HFUHWDU\ DWWHQGV WKH %RDUG%RDUG &RPPLWWHH
LV FLUFXODWHG WR WKH 'LUHFWRUV ZHOO LQ DGYDQFH WR IDFLOLWDWH WKH PHHWLQJVDQGDGYLVHVRQ&RPSOLDQFHVZLWKDSSOLFDEOHODZVDQG
'LUHFWRUVWRSODQWKHLUVFKHGXOHV,QFDVHRIEXVLQHVVH[LJHQFLHV JRYHUQDQFH
WKH %RDUG¶V DSSURYDO LV WDNHQ WKURXJK FLUFXODU UHVROXWLRQV 7KH )$0,/,$5,6$7,21352*5$00()25',5(&7256
FLUFXODUUHVROXWLRQVDUHQRWHGDWWKHVXEVHTXHQW%RDUGPHHWLQJ
$W WKH WLPH RI DSSRLQWLQJ D 'LUHFWRU D IRUPDO OHWWHU RI
7KH QRWLFH RI HDFK %RDUG 0HHWLQJ LV JLYHQ LQ ZULWLQJ WR HDFK DSSRLQWPHQW LV JLYHQ WR KLP ZKLFK LQWHU DOLD H[SODLQV WKH
'LUHFWRU 7KH $JHQGD DORQJ ZLWK WKH UHOHYDQW QRWHV DQG RWKHU UROH IXQFWLRQ GXWLHV DQG UHVSRQVLELOLWLHV H[SHFWHG RI KLP DV D
PDWHULDO LQIRUPDWLRQ DUH VHQW LQ DGYDQFH VHSDUDWHO\ WR HDFK 'LUHFWRURIWKH&RPSDQ\7KH'LUHFWRULVDOVRH[SODLQHGLQGHWDLO
'LUHFWRU DQG LQ H[FHSWLRQDO FDVHV WDEOHG DW WKH PHHWLQJ 7KLV
WKH &RPSOLDQFH UHTXLUHG IURP KLP XQGHU WKH &RPSDQLHV $FW
HQVXUHVWLPHO\DQGLQIRUPHGGHFLVLRQVE\WKH%RDUG7KH%RDUG
&ODXVH RI WKH /LVWLQJ $JUHHPHQW DQG RWKHU UHOHYDQW
UHYLHZVWKHSHUIRUPDQFHRIWKH&RPSDQ\YLVjYLVWKHEXGJHWV
UHJXODWLRQV DQG DIILUPDWLRQ WDNHQ ZLWK UHVSHFW WR WKH VDPH
WDUJHWV
7KH &KDLUPDQ DQG 0DQDJLQJ 'LUHFWRU DOVR KDV RQH WR RQH
,Q WKH ILQDQFLDO \HDU WKH %RDUG PHW ILYH WLPHV 7KH GLVFXVVLRQ ZLWK WKH QHZO\ DSSRLQWHG 'LUHFWRU WR IDPLOLDULVH KLP
PHHWLQJV ZHUH KHOG RQ $SULO -XO\ 2FWREHU ZLWK WKH &RPSDQ\¶V RSHUDWLRQV )XUWKHU WKH &RPSDQ\ KDV SXW
-DQXDU\ DQG )HEUXDU\ 7KH LQWHUYDO LQSODFHDV\VWHPWRIDPLOLDULVHWKH,QGHSHQGHQW'LUHFWRUVDERXW
EHWZHHQ WZR PHHWLQJV ZDV ZHOO ZLWKLQ WKH PD[LPXP SHULRG WKH &RPSDQ\ LWV SURGXFWV EXVLQHVV DQG WKH RQJRLQJ HYHQWV
PHQWLRQHGXQGHU6HFWLRQRIWKH&RPSDQLHV$FWDQG UHODWLQJWRWKH&RPSDQ\
WKH/LVWLQJ$JUHHPHQW
*29(51$1&(&2'(6
$WWHQGDQFH RI 'LUHFWRUV DW WKH %RDUG 0HHWLQJV DQG DW WKH ODVW
&RGHRI%XVLQHVV&RQGXFW (WKLFV
$QQXDO*HQHUDO0HHWLQJ$*0
7KH&RPSDQ\KDVDGRSWHG&RGHRI%XVLQHVV&RQGXFW (WKLFV
6U 1DPHRIWKH'LUHFWRU 1RRI%RDUG $WWHQGDQFHDW ³WKH &RGH´ ZKLFK LV DSSOLFDEOH WR WKH %RDUG RI 'LUHFWRUV
1R 0HHWLQJV WKH$*0KHOG DQG 6HQLRU 0DQDJHPHQW 7HDP RQH OHYHO EHORZ WKH %RDUG
DWWHQGHG RQ-XQH RI WKH &RPSDQ\ 7KH %RDUG RI 'LUHFWRUV DQG WKH PHPEHUV RI
'U9LMD\SDW6LQJKDQLD RI /HDYHVRXJKW 6HQLRU 0DQDJHPHQW 7HDP DUH UHTXLUHG WR DIILUP VHPLDQQXDO
&KDLUPDQ(PHULWXV &RPSOLDQFH RI WKLV &RGH 7KH &RGH UHTXLUHV 'LUHFWRUV DQG
(PSOR\HHV WR DFW KRQHVWO\ IDLUO\ HWKLFDOO\ DQG ZLWK LQWHJULW\
6KUL*DXWDP+DUL RI 3UHVHQW FRQGXFW WKHPVHOYHV LQ SURIHVVLRQDO FRXUWHRXV DQG UHVSHFWIXO
6LQJKDQLD&KDLUPDQ PDQQHU7KH&RGHLVGLVSOD\HGRQWKHZHEVLWHRIWKH&RPSDQ\
DQG0DQDJLQJ'LUHFWRU
YL]ZZZUD\PRQGLQ
6PW1DZD]*DXWDP RI 3UHVHQW &RQIOLFWRI,QWHUHVWV
6LQJKDQLD
(DFK 'LUHFWRU LQIRUPV WKH &RPSDQ\ RQ DQ DQQXDO EDVLV DERXW
6KUL1DEDQNXU*XSWD RI /HDYHVRXJKW WKH %RDUG DQG WKH &RPPLWWHH SRVLWLRQV KH RFFXSLHV LQ RWKHU
6KUL,'$JDUZDO RI 3UHVHQW FRPSDQLHVLQFOXGLQJ&KDLUPDQVKLSVDQGQRWLILHVFKDQJHVGXULQJ
WKH \HDU 0HPEHUV RI WKH %RDUG ZKLOH GLVFKDUJLQJ WKHLU GXWLHV
6KUL6KDLOHVK9 RI 3UHVHQW DYRLG FRQIOLFW RI LQWHUHVW LQ WKH GHFLVLRQ PDNLQJ SURFHVV 7KH
+DULEKDNWL
PHPEHUV RI WKH %RDUG UHVWULFW WKHPVHOYHV IURP DQ\ GLVFXVVLRQV
6KUL3UDGHHS*XKD RI 3UHVHQW DQGYRWLQJLQWUDQVDFWLRQVWKDWWKH\KDYHFRQFHUQRULQWHUHVW
,QVLGHU7UDGLQJ&RGH
6KUL%RPDQ5,UDQL RI /HDYHVRXJKW
7KH&RPSDQ\KDVDGRSWHGD&RGHRI&RQGXFWIRU3UHYHQWLRQRI
6KUL+6XQGHU RI 3UHVHQW
,QVLGHU7UDGLQJ³WKH&RGH´LQDFFRUGDQFHZLWKWKHUHTXLUHPHQWV
6KUL 6KDLOHVK 9 +DULEKDNWL UHVLJQHG IURP WKH %RDUG RQ RI6HFXULWLHVDQG([FKDQJH%RDUGRI,QGLD3URKLELWLRQRI,QVLGHU
6HSWHPEHU 7UDGLQJ5HJXODWLRQVZLWKHIIHFWIURP2FWREHU
&RUSRUDWH*RYHUQDQFH5HSRUW
7KH 6HFXULWLHV DQG ([FKDQJH %RDUG RI ,QGLD 6(%, KDV RYHU
6U 1DPHRIWKH'LUHFWRU 3RVLWLRQ &DWHJRU\ 1RRI
WKH \HDUV LQWURGXFHG YDULRXV DPHQGPHQWV WR WKH ,QVLGHU 1R 0HHWLQJV
7UDGLQJ 5HJXODWLRQV RI ZKLFK RUGDLQ QHZ DFWLRQ VWHSV E\
DWWHQGHG
FRUSRUDWHVDQGRWKHUPDUNHWLQWHUPHGLDULHVIRUWKHSXUSRVHVRI
SUHYHQWLRQ RI ,QVLGHU 7UDGLQJ 7KH &RGH LV DPHQGHG IURP WLPH 6KUL,'$JDUZDO
&KDLUPDQ 1RQ([HFXWLYH RI
,QGHSHQGHQW
WR WLPH UHIOHFWLQJ WKH FKDQJHV EURXJKW LQ E\ 6(%, LQ WKH ,QVLGHU
7UDGLQJ 5HJXODWLRQV 7KH &RGH LV DSSOLFDEOH WR 3URPRWHUV DQG 'U9LMD\SDW6LQJKDQLD 0HPEHU 1RQ([HFXWLYH RI
3URPRWHU¶V*URXSDOO'LUHFWRUVDQGVXFK'HVLJQDWHG(PSOR\HHV 3URPRWHU
ZKRDUHH[SHFWHGWRKDYHDFFHVVWRXQSXEOLVKHGSULFHVHQVLWLYH 6KUL1DEDQNXU*XSWD 0HPEHU 1RQ([HFXWLYH RI
LQIRUPDWLRQ UHODWLQJ WR WKH &RPSDQ\ 7KH &RPSDQ\ 6HFUHWDU\ ,QGHSHQGHQW
LVWKH&RPSOLDQFH2IILFHUIRUPRQLWRULQJDGKHUHQFHWRWKHVDLG 6KUL3UDGHHS*XKD
0HPEHU 1RQ([HFXWLYH RI
5HJXODWLRQV ,QGHSHQGHQW
&200,77((62)7+(%2$5' 6KUL6KDLOHVK9+DULEKDNWL &KDLUPDQ 1RQ([HFXWLYH RI
,QGHSHQGHQW
7KH %RDUG RI 'LUHFWRUV KDYH FRQVWLWXWHG %RDUG &RPPLWWHHV
6KUL ,' $JDUZDO ZDV DSSRLQWHG DV &KDLUPDQ RI WKH
WR GHDO ZLWK VSHFLILF DUHDV DQG DFWLYLWLHV ZKLFK FRQFHUQ WKH
&RPPLWWHHRQ2FWREHU
&RPSDQ\ DQG QHHG D FORVHU UHYLHZ 7KH %RDUG &RPPLWWHHV
DUH IRUPHG ZLWK DSSURYDO RI WKH %RDUG DQG IXQFWLRQ XQGHU
6KUL 3UDGHHS *XKD ZDV DSSRLQWHG DV 0HPEHU RI WKH
WKHLU UHVSHFWLYH &KDUWHUV 7KHVH %RDUG &RPPLWWHHV SOD\ DQ &RPPLWWHHRQ2FWREHU
LPSRUWDQW UROH LQ RYHUDOO PDQDJHPHQW RI GD\WRGD\ DIIDLUV
6KUL 6KDLOHVK 9 +DULEKDNWL UHVLJQHG IURP WKH %RDUG RQ
DQG JRYHUQDQFH RI WKH &RPSDQ\ 7KH %RDUG &RPPLWWHHV 6HSWHPEHU
PHHW DW UHJXODU LQWHUYDOV WDNHV QHFHVVDU\ VWHSV WR SHUIRUP LWV
GXWLHV HQWUXVWHG E\ WKH %RDUG 7R HQVXUH JRRG JRYHUQDQFH 7HUPVRI5HIHUHQFH
WKH0LQXWHVRIWKH&RPPLWWHH0HHWLQJVDUHSODFHGEHIRUHWKH 7KH $XGLW &RPPLWWHH LQWHU DOLD SHUIRUPV WKH IXQFWLRQV RI
%RDUGIRUWKHLUQRWLQJ DSSURYLQJ $QQXDO ,QWHUQDO $XGLW 3ODQ UHYLHZ RI ILQDQFLDO
UHSRUWLQJ V\VWHP LQWHUQDO FRQWUROV V\VWHP GLVFXVVLRQ RQ
7KH%RDUGKDVFXUUHQWO\WKHIROORZLQJ&RPPLWWHHV
TXDUWHUO\KDOI\HDUO\DQGDQQXDOILQDQFLDOUHVXOWVLQWHUDFWLRQ
$ $8',7&200,77(( ZLWK 6WDWXWRU\ DQG ,QWHUQDO $XGLWRUV RQHRQRQH PHHWLQJ
ZLWK 6WDWXWRU\ DQG ,QWHUQDO $XGLWRUV UHFRPPHQGDWLRQ IRU
&RPSRVLWLRQ WKH DSSRLQWPHQW RI 6WDWXWRU\ DQG &RVW $XGLWRUV DQG WKHLU
UHPXQHUDWLRQ UHFRPPHQGDWLRQ IRU WKH DSSRLQWPHQW DQG
$XGLW &RPPLWWHH RI WKH %RDUG RI 'LUHFWRUV ³WKH $XGLW
UHPXQHUDWLRQ RI ,QWHUQDO $XGLWRUV UHYLHZ RI %XVLQHVV 5LVN
&RPPLWWHH´LVHQWUXVWHGZLWKWKHUHVSRQVLELOLW\WRVXSHUYLVH
0DQDJHPHQW 3ODQ UHYLHZ RI )RUH[ SROLF\ 0DQDJHPHQW
WKH &RPSDQ\¶V LQWHUQDO FRQWUROV DQG ILQDQFLDO UHSRUWLQJ
'LVFXVVLRQV $QDO\VLV UHYLHZ RI ,QWHUQDO $XGLW 5HSRUWV
SURFHVV7KHFRPSRVLWLRQTXRUXPSRZHUVUROHDQGVFRSH VLJQLILFDQWUHODWHGSDUW\WUDQVDFWLRQV7KH%RDUGKDVIUDPHG
DUHLQDFFRUGDQFHZLWK6HFWLRQRIWKH&RPSDQLHV$FW WKH $XGLW &RPPLWWHH &KDUWHU IRU WKH SXUSRVH RI HIIHFWLYH
DQGWKHSURYLVLRQVRI&ODXVHRIWKH/LVWLQJ$JUHHPHQW FRPSOLDQFHRISURYLVLRQVRI6HFWLRQRIWKH&RPSDQLHV
$OOPHPEHUVRIWKH$XGLW&RPPLWWHHDUHILQDQFLDOO\OLWHUDWH $FW DQG &ODXVH RI WKH /LVWLQJ $JUHHPHQW ,Q
DQG EULQJ LQ H[SHUWLVH LQ WKH ILHOGV RI )LQDQFH 7D[DWLRQ IXOILOOLQJWKHDERYHUROHWKH$XGLW&RPPLWWHHKDVSRZHUVWR
(FRQRPLFV5LVNDQG,QWHUQDWLRQDO)LQDQFH6KUL,'$JDUZDO LQYHVWLJDWHDQ\DFWLYLW\ZLWKLQLWVWHUPVRIUHIHUHQFHWRVHHN
1RQ([HFXWLYH ,QGHSHQGHQW 'LUHFWRU LV WKH &KDLUPDQ LQIRUPDWLRQ IURP HPSOR\HHV DQG WR REWDLQ RXWVLGH OHJDO
RI WKH $XGLW &RPPLWWHH 7KH RWKHU PHPEHUV RI WKH $XGLW DQGSURIHVVLRQDODGYLFH
&RPPLWWHH LQFOXGH 'U 9LMD\SDW 6LQJKDQLD 6KUL 1DEDQNXU
)XQFWLRQVRI$XGLW&RPPLWWHH
*XSWDDQG6KUL3UDGHHS*XKD
7KH$XGLW&RPPLWWHHZKLOHUHYLHZLQJWKH$QQXDO)LQDQFLDO
0HHWLQJVDQG$WWHQGDQFH 6WDWHPHQWV DOVR UHYLHZ WKH DSSOLFDELOLW\ RI YDULRXV
7KH $XGLW &RPPLWWHH PHW ILYH WLPHV GXULQJ WKH )LQDQFLDO $FFRXQWLQJ 6WDQGDUGV $6 UHIHUUHG WR LQ 6HFWLRQ RI
WKH &RPSDQLHV $FW &RPSOLDQFH RI WKH $FFRXQWLQJ
<HDU 7KH &RPSDQ\ LV LQ IXOO FRPSOLDQFH ZLWK
6WDQGDUGVDVDSSOLFDEOHWRWKH&RPSDQ\KDVEHHQHQVXUHG
WKH SURYLVLRQV RI &ODXVH RI WKH /LVWLQJ $JUHHPHQW RQ
LQWKHSUHSDUDWLRQRIWKH)LQDQFLDO6WDWHPHQWVIRUWKH\HDU
JDSV EHWZHHQ DQ\ WZR $XGLW &RPPLWWHH PHHWLQJV 7KH
HQGHG0DUFK
&RPPLWWHHPHWRQ$SULO$SULO-XO\
2FWREHU DQG -DQXDU\ 7KH QHFHVVDU\ 7KH $XGLW &RPPLWWHH EULGJHV WKH JDS EHWZHHQ WKH
TXRUXPZDVSUHVHQWIRUDOO0HHWLQJV7KH&KDLUPDQRIWKH ,QWHUQDO$XGLWRUVDQGWKH6WDWXWRU\$XGLWRUV7RHQVXUHJRRG
$XGLW &RPPLWWHH ZDV SUHVHQW DW WKH ODVW $QQXDO *HQHUDO *RYHUQDQFH WKH &RPSDQ\ KDV EHHQ URWDWLQJ 3DUWQHUV RI
0HHWLQJ RI WKH &RPSDQ\ 7KH 7DEOH EHORZ SURYLGHV WKH 6WDWXWRU\$XGLWRUV7KH6WDWXWRU\$XGLWRUVDUHUHVSRQVLEOHIRU
DWWHQGDQFHRIWKH$XGLW&RPPLWWHHPHPEHUV SHUIRUPLQJ,QGHSHQGHQWDXGLWRIWKH&RPSDQ\¶VILQDQFLDO
&RUSRUDWH*RYHUQDQFH5HSRUW
VWDWHPHQWV LQ DFFRUGDQFH ZLWK WKH JHQHUDOO\ DFFHSWHG &RPSDQ\7KH7DEOHEHORZSURYLGHVWKHDWWHQGDQFHRIWKH
DXGLWLQJSUDFWLFHVDQGLVVXLQJUHSRUWVEDVHGRQVXFKDXGLWV 5HPXQHUDWLRQDQG1RPLQDWLRQ&RPPLWWHHPHPEHUV
ZKLOHWKH,QWHUQDO$XGLWRUVDUHUHVSRQVLEOHIRUWKHLQWHUQDOULVN
FRQWUROV 6U 1DPHRIWKH 3RVLWLRQ &DWHJRU\ 1RRI
1R 'LUHFWRU 0HHWLQJV
%HVLGHV WKH DERYH &KDLUPDQ DQG 0DQDJLQJ 'LUHFWRU DWWHQGHG
:KROHWLPH 'LUHFWRU &KLHI )LQDQFLDO 2IILFHU %XVLQHVV
6KUL,'$JDUZDO &KDLUPDQ 1RQ RI
+HDGV RI WKH &RPSDQ\¶V 'LYLVLRQV WKH UHSUHVHQWDWLYHV
([HFXWLYH
RI WKH 6WDWXWRU\ $XGLWRUV DQG WKH ,QWHUQDO $XGLWRUV DUH ,QGHSHQGHQW
SHUPDQHQWLQYLWHHVWRWKH$XGLW&RPPLWWHH0HHWLQJV7KH
UHSUHVHQWDWLYHV RI WKH &RVW $XGLWRU DWWHQG VXFK PHHWLQJV 'U9LMD\SDW 0HPEHU 1RQ RI
RI WKH $XGLW &RPPLWWHH ZKHUH PDWWHUV UHODWLQJ WR WKH 6LQJKDQLD ([HFXWLYH
3URPRWHU
&RVW $XGLW 5HSRUW DUH GLVFXVVHG DW OHQJWK 7KH &RPSDQ\
6HFUHWDU\DFWVDVD6HFUHWDU\WRWKH&RPPLWWHHDVUHTXLUHG 6KUL*DXWDP+DUL 0HPEHU ([HFXWLYH RI
E\ &ODXVH ,,,$ RI WKH /LVWLQJ $JUHHPHQW RI 6WRFN 6LQJKDQLD 3URPRWHU
([FKDQJHV 6KUL6KDLOHVK9 0HPEHU 1RQ RI
+DULEKDNWL
([HFXWLYH
7KH&RPSDQ\IROORZVEHVWSUDFWLFHVLQILQDQFLDOUHSRUWLQJ
,QGHSHQGHQW
7KH &RPSDQ\ KDV EHHQ UHSRUWLQJ RQ TXDUWHUO\ EDVLV WKH
8QDXGLWHG &RQVROLGDWHG )LQDQFLDO 5HVXOWV DV UHTXLUHG 6KUL1DEDQNXU 0HPEHU 1RQ RI
E\ WKH &ODXVH RI WKH /LVWLQJ $JUHHPHQW HQWHUHG ZLWK *XSWD ([HFXWLYH
6WRFN ([FKDQJHV 7KH &RPSDQ\¶V TXDUWHUO\ 8QDXGLWHG ,QGHSHQGHQW
6WDQGDORQH )LQDQFLDO 5HVXOWV DUH PDGH DYDLODEOH RQ WKH 6KUL3UDGHHS 0HPEHU 1RQ RI
ZHEVLWH ZZZUD\PRQGLQ DQG DUH DOVR VHQW WR WKH 6WRFN *XKD ([HFXWLYH
([FKDQJHV ZKHUH WKH &RPSDQ\¶V HTXLW\ VKDUHV DUH OLVWHG ,QGHSHQGHQW
IRUGLVSOD\DWWKHLUUHVSHFWLYHZHEVLWHV
6KUL6KDLOHVK9+DULEKDNWLKDVUHVLJQHGIURPWKH%RDUGRQ
7KH $XGLW &RPPLWWHH DOVR RYHUVHHV DQG UHYLHZV WKH 6HSWHPEHU
IXQFWLRQLQJ RI D YLJLO PHFKDQLVP LPSOHPHQWHG LQ WKH 7HUPVRI5HIHUHQFH
&RPSDQ\DVD)UDXG5LVN0DQDJHPHQW3ROLF\DQG:KLVWOH
%ORZHU3ROLF\DQGUHYLHZVWKHILQGLQJRILQYHVWLJDWLRQLQWR 7KH %RDUG KDV IUDPHG WKH 5HPXQHUDWLRQ DQG 1RPLQDWLRQ
FDVHV RI PDWHULDO QDWXUH DQG WKH DFWLRQV WDNHQ LQ UHVSHFW &RPPLWWHH &KDUWHU ZKLFK HQVXUHV HIIHFWLYH FRPSOLDQFH
WKHUHRI RI6HFWLRQRIWKH&RPSDQLHV$FWDQG&ODXVH
RI WKH /LVWLQJ $JUHHPHQW 7KH %RDUG KDV FOHDUO\ GHILQHG
,QWHUQDO&RQWUROVDQG*RYHUQDQFH3URFHVVHV WHUPV RI UHIHUHQFH IRU WKH 5HPXQHUDWLRQ DQG 1RPLQDWLRQ
7KH &RPSDQ\ KDV DSSRLQWHG D ILUP RI &KDUWHUHG &RPPLWWHHZKLFKDUHDVIROORZV
$FFRXQWDQWV DV ,QWHUQDO $XGLWRUV WR UHYLHZ DQG UHSRUW x 5HYLHZLQJ WKH RYHUDOO FRPSHQVDWLRQ SROLF\ VHUYLFH
RQ WKH LQWHUQDO FRQWUROV V\VWHP 7KH UHSRUW RI WKH ,QWHUQDO DJUHHPHQWV DQG RWKHU HPSOR\PHQW FRQGLWLRQV
$XGLWRUV LV UHYLHZHG E\ WKH $XGLW &RPPLWWHH 7KH $XGLW RI 0DQDJLQJ:KROHWLPH 'LUHFWRUV DQG 6HQLRU
&RPPLWWHH IRUPXODWHV D GHWDLOHG SODQ WR WKH ,QWHUQDO 0DQDJHPHQWRQHOHYHOEHORZWKH%RDUG
$XGLWRUVIRUWKH\HDUDQGWKHVDPHLVUHYLHZHGDWWKH$XGLW
x WR KHOS LQ GHWHUPLQLQJ WKH DSSURSULDWH VL]H GLYHUVLW\
&RPPLWWHH PHHWLQJV 7KH ,QWHUQDO $XGLWRUV VXEPLW WKHLU
DQGFRPSRVLWLRQRIWKH%RDUG
UHFRPPHQGDWLRQVWRWKH$XGLW&RPPLWWHHDQGSURYLGHVD
URDGPDSIRUIXWXUHDFWLRQ x WR UHFRPPHQG WR WKH %RDUG DSSRLQWPHQWUH
DSSRLQWPHQWDQGUHPRYDORI'LUHFWRUV
%5(081(5$7,21$1'120,1$7,21&200,77((
x WRIUDPHFULWHULDIRUGHWHUPLQLQJTXDOLILFDWLRQVSRVLWLYH
&RPSRVLWLRQ DWWULEXWHVDQGLQGHSHQGHQFHRI'LUHFWRUV
7KH 5HPXQHUDWLRQ DQG 1RPLQDWLRQ &RPPLWWHH FRPSULVHV x WRUHFRPPHQGWRWKH%RDUGUHPXQHUDWLRQSD\DEOHWR
RI )LYH 'LUHFWRUV 6KUL ,' $JDUZDO 1RQ([HFXWLYH WKH'LUHFWRUVZKLOHIL[LQJWKHUHPXQHUDWLRQWR([HFXWLYH
,QGHSHQGHQW 'LUHFWRU LV WKH &KDLUPDQ RI WKH &RPPLWWHH 'LUHFWRUV WKH UHVWULFWLRQV FRQWDLQHG LQ WKH &RPSDQLHV
7KH RWKHU PHPEHUV RI WKH 5HPXQHUDWLRQ DQG 1RPLQDWLRQ $FWLVWREHFRQVLGHUHG
&RPPLWWHHLQFOXGH'U9LMD\SDW6LQJKDQLD6KUL*DXWDP+DUL
6LQJKDQLD6KUL1DEDQNXU*XSWDDQG6KUL3UDGHHS*XKD7KH x WR FUHDWH DQ HYDOXDWLRQ IUDPHZRUN IRU ,QGHSHQGHQW
&RPSRVLWLRQRI5HPXQHUDWLRQDQG1RPLQDWLRQ&RPPLWWHH 'LUHFWRUVDQGWKH%RDUG
LVSXUVXDQWWRWKHSURYLVLRQVRI6HFWLRQRIWKH&RPSDQLHV x WRSURYLGHQHFHVVDU\UHSRUWVWRWKH&KDLUPDQDIWHUWKH
$FWDQG&ODXVHRIWKH/LVWLQJ$JUHHPHQW HYDOXDWLRQSURFHVVLVFRPSOHWHGE\WKH'LUHFWRUV
0HHWLQJDQG$WWHQGDQFH x WRDVVLVWLQGHYHORSLQJDVXFFHVVLRQSODQIRUWKH%RDUG
7KH 5HPXQHUDWLRQ DQG 1RPLQDWLRQ &RPPLWWHH PHW WZR x WR DVVLVW WKH %RDUG LQ IXOILOOLQJ UHVSRQVLELOLWLHV HQWUXVWHG
WLPHV GXULQJ WKH \HDU RQ $SULO DQG -XO\ IURPWLPHWRWLPH
7KH QHFHVVDU\ TXRUXP ZDV SUHVHQW IRU DOO 0HHWLQJV 7KH x GHOHJDWLRQRIDQ\RILWVSRZHUVWRDQ\0HPEHURIWKH
&KDLUPDQRIWKH5HPXQHUDWLRQDQG1RPLQDWLRQ&RPPLWWHH &RPPLWWHHRUWKH&RPSOLDQFH2IILFHU
ZDV SUHVHQW DW WKH ODVW $QQXDO *HQHUDO 0HHWLQJ RI WKH
&RUSRUDWH*RYHUQDQFH5HSRUW
5(081(5$7,2132/,&<
6KUL 3 . %KDQGDUL KDV UHVLJQHG IURP WKH %RDUG RQ
$SULO
$ 5HPXQHUDWLRQWR1RQ([HFXWLYH'LUHFWRUV
&RPPLVVLRQWR1RQ([HFXWLYH'LUHFWRUVZLOOEHSDLGDIWHUWKH
7KH1RQ([HFXWLYH'LUHFWRUVDUHSDLGUHPXQHUDWLRQE\
DFFRXQWVDUHDSSURYHGE\WKH$QQXDO*HQHUDO0HHWLQJRQ
ZD\RI&RPPLVVLRQDQG6LWWLQJ)HHV7KH1RQ([HFXWLYH
-XQH
'LUHFWRUV DUH SDLG VLWWLQJ IHHV IRU HDFK PHHWLQJ RI
WKH %RDUG RU &RPPLWWHH RI 'LUHFWRUV DWWHQGHG E\ E (;(&87,9(',5(&7256
WKHP 7KH WRWDO DPRXQW RI VLWWLQJ IHHV SDLG GXULQJ
WKH )LQDQFLDO <HDU ZDV ` /DF 7KH 1RQ 3DUWLFXODUV 6KUL*DXWDP 6KUL+6XQGHU
([HFXWLYH ,QGHSHQGHQW 'LUHFWRUV GR QRW KDYH DQ\ +DUL6LQJKDQLD :KROHWLPH
&KDLUPDQDQG 'LUHFWRU
PDWHULDOSHFXQLDU\UHODWLRQVKLSRUWUDQVDFWLRQVZLWKWKH
0DQDJLQJ'LUHFWRU
&RPSDQ\
7HUPRI )RUDSHULRGRI )RUDSHULRGRI
% 5HPXQHUDWLRQWR([HFXWLYH'LUHFWRUV $SSRLQWPHQW \HDUVIURP \HDUVIURP
-XO\WR-XQH -XO\WR
7KH DSSRLQWPHQW DQG UHPXQHUDWLRQ RI ([HFXWLYH -XO\
'LUHFWRUV LQFOXGLQJ &KDLUPDQ DQG 0DQDJLQJ
6DODU\ ` `
'LUHFWRU DQG :KROHWLPH 'LUHFWRU LV JRYHUQHG E\ WKH
$OORZDQFHV 1LO `
UHFRPPHQGDWLRQRIWKH5HPXQHUDWLRQDQG1RPLQDWLRQ
&RPPLWWHH UHVROXWLRQV SDVVHG E\ WKH %RDUG RI &RPPLVVLRQ ` 1LO
'LUHFWRUVDQGVKDUHKROGHUVRIWKH&RPSDQ\3D\PHQW 9DULDEOH3D\ 1LO `
RIUHPXQHUDWLRQWR([HFXWLYH'LUHFWRUVLVJRYHUQHGE\ 3HUTXLVLWHV ` `
WKH UHVSHFWLYH $JUHHPHQWV H[HFXWHG EHWZHHQ WKHP 6LWWLQJ)HHV ` 1LO
DQG WKH &RPSDQ\ 7KH UHPXQHUDWLRQ SDFNDJH RI 6LWWLQJ)HHV ` 1LO
&KDLUPDQ DQG 0DQDJLQJ 'LUHFWRU DQG :KROHWLPH IURP6XEVLGLDU\
'LUHFWRU FRPSULVHV RI VDODU\ SHUTXLVLWHV DOORZDQFHV &RPSDQLHV
DQG FRQWULEXWLRQV WR 3URYLGHQW DQG RWKHU 5HWLUHPHQW 0LQLPXP ,QWKHHYHQWRI ,QWKHHYHQWRI
%HQHILW)XQGVDVDSSURYHGE\WKHVKDUHKROGHUVDWWKH 5HPXQHUDWLRQ LQDGHTXDF\RI LQDGHTXDF\RI
*HQHUDO 0HHWLQJV $QQXDO LQFUHPHQWV DUH OLQNHG WR SURILWVXQGHU SURILWVXQGHU
SHUIRUPDQFH DQG DUH GHFLGHG E\ WKH 5HPXQHUDWLRQ WKH$FWLQDQ\ WKH$FWLQDQ\
ILQDQFLDO\HDURU ILQDQFLDO\HDURU
DQG 1RPLQDWLRQ &RPPLWWHH DQG UHFRPPHQGHG WR \HDUVPLQLPXP \HDUVPLQLPXP
WKH%RDUGIRUDSSURYDOWKHUHRI UHPXQHUDWLRQ UHPXQHUDWLRQ
7KHUHPXQHUDWLRQSROLF\LVGLUHFWHGWRZDUGVUHZDUGLQJ VKDOOEHVXEMHFW VKDOOEHVXEMHFW
SHUIRUPDQFH EDVHG RQ UHYLHZ RI DFKLHYHPHQWV ,W LV WRQHFHVVDU\ WRQHFHVVDU\
DSSURYDORI&HQWUDO DSSURYDORI&HQWUDO
DLPHGDWDWWUDFWLQJDQGUHWDLQLQJKLJKFDOLEHUWDOHQW *RYHUQPHQW *RYHUQPHQW
3UHVHQWO\ WKH &RPSDQ\ GRHV QRW KDYH D VFKHPH IRU 1RWLFH3HULRG 6L[PRQWKV¶QRWLFH 7KUHHPRQWKV¶
JUDQWRIVWRFNRSWLRQVRUSHUIRUPDQFHOLQNHGLQFHQWLYHV 6HYHUDQFH)HHV RUVL[PRQWKV¶VDODU\ QRWLFHRUWKUHH
IRULWV'LUHFWRUV LQOLHXWKHUHRI PRQWKV¶VDODU\LQ
OLHXWKHUHRI
'(7$,/6 2) 5(081(5$7,21 3$,' 72 ',5(&7256 )25
7+(<($5(1'('0$5&+ 3(5)250$1&((9$/8$7,21
D 121(;(&87,9(',5(&7256 3XUVXDQWWRWKHSURYLVLRQVRIWKH&RPSDQLHV$FWDQG
&ODXVHRIWKH/LVWLQJ$JUHHPHQWWKH%RDUGKDVFDUULHGRXW
1DPHRIWKH'LUHFWRU 6LWWLQJ)HHV 1RRI &RPPLVVLRQ
WKHDQQXDOSHUIRUPDQFHHYDOXDWLRQRILWVRZQSHUIRUPDQFH
` 6KDUHV WR1RQ
WKH 'LUHFWRUV LQGLYLGXDOO\ DV ZHOO DV WKH HYDOXDWLRQ RI WKH
KHOG ([HFXWLYH
'LUHFWRUV` ZRUNLQJRILWV%RDUG&RPPLWWHHV$VWUXFWXUHGTXHVWLRQQDLUH
'U9LMD\SDW6LQJKDQLD ZDV SUHSDUHG DIWHU FLUFXODWLQJ WKH GUDIW IRUPV FRYHULQJ
&KDLUPDQ(PHULWXV YDULRXVDVSHFWVRIWKH%RDUG¶VIXQFWLRQLQJVXFKDVDGHTXDF\
6PW1DZD]*DXWDP 1LO RIWKHFRPSRVLWLRQRIWKH%RDUGDQGLWV&RPPLWWHHV%RDUG
6LQJKDQLD FXOWXUH H[HFXWLRQ DQG SHUIRUPDQFH RI VSHFLILF GXWLHV
6KUL1DEDQNXU*XSWD 1LO REOLJDWLRQVDQGJRYHUQDQFH
6KUL,'$JDUZDO 1LO 7KH SHUIRUPDQFH HYDOXDWLRQ RI WKH &KDLUPDQ DQG
6KUL6KDLOHVK9+DULEKDNWL 1LO 1$ 0DQDJLQJ 'LUHFWRU DQG WKH 1RQ,QGHSHQGHQW 'LUHFWRUV
6KUL3UDGHHS*XKD 1LO ZDVFDUULHGRXWE\WKH,QGHSHQGHQW'LUHFWRUV7KH'LUHFWRUV
6KUL%RPDQ5,UDQL
1LO 1LO 1LO H[SUHVVWKHLUVDWLVIDFWLRQZLWKWKHHYDOXDWLRQSURFHVV
6KUL3.%KDQGDUL 1LO 1$ & 67$.(+2/'(565(/$7,216+,3&200,77((
6KUL6KDLOHVK9+DULEKDNWLKDVUHVLJQHGIURPWKH%RDUGRQ
6HSWHPEHU &RPSRVLWLRQDQG$WWHQGDQFH
6KUL%RPDQ5,UDQLKDVZULWWHQWRWKH&RPSDQ\VWDWLQJWKDW 7KLV&RPPLWWHHFRPSULVHVRI7KUHH'LUHFWRUV6KUL1DEDQNXU
KHZLOOQRWUHFHLYHDQ\UHPXQHUDWLRQIURPWKH&RPSDQ\ *XSWD 1RQ([HFXWLYH ,QGHSHQGHQW 'LUHFWRU LV WKH
&KDLUPDQ RI WKLV &RPPLWWHH 7KH WDEOH EHORZ KLJKOLJKWV
&RUSRUDWH*RYHUQDQFH5HSRUW
WKH FRPSRVLWLRQ DQG DWWHQGDQFH RI WKH 0HPEHUV RI WKH &RQWLQXRXVHIIRUWVDUHPDGHWRHQVXUHWKDWJULHYDQFHVDUH
&RPPLWWHH 7KH QHFHVVDU\ TXRUXP ZDV SUHVHQW IRU DOO PRUH H[SHGLWLRXVO\ UHGUHVVHG WR WKH FRPSOHWH VDWLVIDFWLRQ
0HHWLQJV RIWKHLQYHVWRUV6KDUHKROGHUVDUHUHTXHVWHGWRIXUQLVKWKHLU
WHOHSKRQH QXPEHUV DQG HPDLO DGGUHVVHV WR IDFLOLWDWH
6U 1DPHRIWKH 5ROH &DWHJRU\ 1RRI SURPSWDFWLRQ
1R 'LUHFWRU 0HHWLQJV
DWWHQGHG 'HWDLOV RI 6KDUHKROGHUV¶ &RPSODLQWV 5HFHLYHG 6ROYHG DQG
3HQGLQJ6KDUH7UDQVIHUV
6KUL1DEDQNXU &KDLUPDQ 1RQ([HFXWLYH RI
*XSWD ,QGHSHQGHQW 7KHWRWDOQXPEHURIFRPSODLQWVUHFHLYHGDQGUHSOLHGWRWKH
6KUL*DXWDP+DUL 0HPEHU ([HFXWLYH RI VKDUHKROGHUV GXULQJ WKH \HDU HQGHG 0DUFK ZHUH
6LQJKDQLD 3URPRWHU DV SHU GHWDLOV JLYH EHORZ 7KHUH ZHUH QR FRPSODLQWV
RXWVWDQGLQJDVRQ0DUFK7KHQXPEHURISHQGLQJ
6KUL+6XQGHU
0HPEHU ([HFXWLYH RI
VKDUHWUDQVIHUV DQG SHQGLQJ UHTXHVWV IRU GHPDWHULDOL]DWLRQ
6KUL3. 0HPEHU 1RQ([HFXWLYH RI DV RQ 0DUFK ZHUH 1LO 6KDUHKROGHUV¶,QYHVWRUV¶
%KDQGDUL
,QGHSHQGHQW FRPSODLQWV DQG RWKHU FRUUHVSRQGHQFH DUH QRUPDOO\
6KUL + 6XQGHU ZDV DSSRLQWHG DV D 0HPEHU RI WKH DWWHQGHG WR ZLWKLQ VHYHQ ZRUNLQJ GD\V H[FHSW ZKHUH
&RPPLWWHHRQ$SULO FRQVWUDLQHG E\ GLVSXWHV RU OHJDO LPSHGLPHQWV 1R LQYHVWRU
JULHYDQFHV UHPDLQHG XQDWWHQGHGSHQGLQJ IRU PRUH WKDQ
6KUL3.%KDQGDULKDVUHVLJQHGIURPWKH%RDUGRQ$SULO WKLUW\GD\VDVRQ0DUFK
6KUL 7KRPDV )HUQDQGHV &RPSDQ\ 6HFUHWDU\ LV WKH 6U 1DWXUHRI&RPSODLQWV &RPSODLQWV &RPSODLQWV
&RPSOLDQFH2IILFHU 1R 5HFHLYHG 5HGUHVVHG
7HUPVRI5HIHUHQFH 1RQUHFHLSWRI'LYLGHQG
7KH %RDUG KDV FOHDUO\ GHILQHG WKH WHUPV RI UHIHUHQFH IRU 1RQUHFHLSWRI6KDUHV
WKLV&RPPLWWHHZKLFKJHQHUDOO\PHHWVRQFHDPRQWK7KH ORGJHGIRU7UDQVIHU
&RPPLWWHH ORRNV LQWR WKH PDWWHUV RI 6KDUHKROGHU,QYHVWRUV 1RQUHFHLSWRI'XSOLFDWH
JULHYDQFHVDORQJZLWKRWKHUPDWWHUOLVWHGEHORZ &RQVROLGDWHG6KDUH
&HUWLILFDWHV
y DSSURYDO RI WUDQVIHU RI VKDUHVGHEHQWXUHV DQG LVVXH
RI GXSOLFDWHVSOLWFRQVROLGDWLRQVXEGLYLVLRQ RI VKDUH 2WKHUVHJ4XHULHV
GHEHQWXUHFHUWLILFDWHV UHFHLYHGIURPRWKHU
6WDWXWRU\$XWKRULWLHVHWF
y RSHQLQJPRGLILFDWLRQ RI RSHUDWLRQ DQG FORVLQJ RI
EDQNDFFRXQWV 7RWDO
y JUDQW RI VSHFLDOJHQHUDO 3RZHU RI $WWRUQH\ LQ IDYRXU 7KH DERYH WDEOH LQFOXGHV &RPSODLQWV UHFHLYHG IURP 6(%,
RI HPSOR\HHV RI WKH &RPSDQ\ IURP WLPH WR WLPH LQ 6&25(6E\WKH&RPSDQ\
FRQQHFWLRQ ZLWK WKH FRQGXFW RI WKH EXVLQHVV RI WKH
' &25325$7(62&,$/5(63216,%,/,7<&200,77((
&RPSDQ\ SDUWLFXODUO\ ZLWK *RYHUQPHQW DQG 4XDVL
*RYHUQPHQW,QVWLWXWLRQV &RPSRVLWLRQ
y WR IL[ UHFRUG GDWHERRN FORVXUH RI VKDUHGHEHQWXUH 3XUVXDQW WR 6HFWLRQ RI WKH &RPSDQLHV $FW WKH
WUDQVIHUERRNRIWKH&RPSDQ\IURPWLPHWRWLPH &RUSRUDWH 6RFLDO 5HVSRQVLELOLW\ &65 &RPPLWWHH ZDV
y WR DSSRLQW UHSUHVHQWDWLYHV WR DWWHQG WKH *HQHUDO FRQVWLWXWHG RQ $SULO ZKLFK FRPSULVHV RI )RXU
0HHWLQJRIRWKHUFRPSDQLHVLQZKLFKWKH&RPSDQ\LV 'LUHFWRUV 6KUL ,' $JDUZDO 1RQ([HFXWLYH ,QGHSHQGHQW
KROGLQJVKDUHV 'LUHFWRU LV WKH &KDLUPDQ RI WKH &RPPLWWHH 7KH RWKHU
PHPEHUV RI WKH &65 &RPPLWWHH LQFOXGH 6PW 1DZD]
y WR FKDQJH WKH VLJQDWRULHV IRU DYDLOPHQW RI YDULRXV *DXWDP 6LQJKDQLD 6KUL 3UDGHHS *XKD DQG 6KUL %RPDQ
IDFLOLW\IURP%DQNV)LQDQFLDO,QVWLWXWLRQV 5 ,UDQL 7KH &RPSRVLWLRQ RI &65 &RPPLWWHH LV SXUVXDQW WR
y WR JUDQW DXWKRULW\ WR H[HFXWH DQG VLJQ IRUHLJQ WKH SURYLVLRQV RI 6HFWLRQ RI WKH &RPSDQLHV $FW
H[FKDQJHFRQWUDFWVDQGGHULYDWLYHWUDQVDFWLRQV DQGWKH&RPSDQLHV&RUSRUDWH6RFLDO5HVSRQVLELOLW\3ROLF\
5XOHV $V SHU 6HFWLRQ RI WKH &RPSDQLHV $FW
y WRFDUU\RXWDQ\RWKHUGXWLHVWKDWPD\EHGHOHJDWHGWR
WKH&RPSDQ\ZDVUHTXLUHGWRVSHQG` ODFVIRUWKH
WKH&RPPLWWHHE\WKH%RDUGRI'LUHFWRUVIURPWLPHWR
)LQDQFLDO<HDU
WLPH
7KH &RPSDQ\ IRUPXODWHG &65 3ROLF\ ZKLFK LV XSORDGHG
7KH 6HFUHWDULDO 'HSDUWPHQW RI WKH &RPSDQ\ DQG WKH
RQ WKH ZHEVLWH RI WKH &RPSDQ\ :HEOLQNKWWSZZZ
5HJLVWUDUDQG6KDUH7UDQVIHU$JHQW/LQN,QWLPH,QGLD3ULYDWH
UD\PRQGLQFUSROLFLHVFVUSFVUBSROLF\KWPO
/LPLWHGDWWHQGWRDOOJULHYDQFHVRIWKHVKDUHKROGHUVUHFHLYHG
GLUHFWO\ RU WKURXJK 6(%, 6WRFN ([FKDQJHV 0LQLVWU\ RI 7KHWHUPVRIUHIHUHQFHRIWKH&RUSRUDWH6RFLDO5HVSRQVLELOLW\
&RUSRUDWH$IIDLUV5HJLVWUDURI&RPSDQLHVHWF7KH0LQXWHV &RPPLWWHHEURDGO\FRPSULVHV
RI WKH 6WDNHKROGHUV 5HODWLRQVKLS &RPPLWWHH 0HHWLQJV DUH
x 7R UHYLHZ WKH H[LVWLQJ &65 3ROLF\ DQG WR PDNH LW PRUH
FLUFXODWHGWRWKH%RDUGDQGQRWHGE\WKH%RDUGRI'LUHFWRUV
FRPSUHKHQVLYH VR DV WR LQGLFDWH WKH DFWLYLWLHV WR EH
DWWKH%RDUG0HHWLQJV
&RUSRUDWH*RYHUQDQFH5HSRUW
XQGHUWDNHQE\WKH&RPSDQ\DVVSHFLILHGLQ6FKHGXOH9,,RI QRWDWWUDFWWKHSURYLVLRQVRI6HFWLRQRIWKH&RPSDQLHV
WKH&RPSDQLHV$FW $FW7KHUHZHUHQRPDWHULDOO\VLJQLILFDQWWUDQVDFWLRQV
ZLWKUHODWHGSDUWLHVGXULQJWKHILQDQFLDO\HDU5HODWHGSDUW\
x 7R SURYLGH JXLGDQFH RQ YDULRXV &65 DFWLYLWLHV WR EH WUDQVDFWLRQV KDYH EHHQ GLVFORVHG XQGHU WKH QRWH RI
XQGHUWDNHQE\WKH&RPSDQ\DQGWRPRQLWRUSURFHVV VLJQLILFDQW DFFRXQWLQJ SROLFLHV DQG QRWHV IRUPLQJ SDUW RI
0HHWLQJDQG$WWHQGDQFH WKH ILQDQFLDO VWDWHPHQWV LQ DFFRUGDQFH ZLWK ³$FFRXQWLQJ
6WDQGDUG´$VWDWHPHQWLQVXPPDU\IRUPRIWUDQVDFWLRQV
7KH &65 &RPPLWWHH PHW WKUHH WLPHV GXULQJ WKH ZLWK UHODWHG SDUWLHV LQ WKH RUGLQDU\ FRXUVH RI EXVLQHVV DQG
\HDU RQ 2FWREHU 'HFHPEHU DQG DUP¶V OHQJWK EDVLV LV SHULRGLFDOO\ SODFHG EHIRUH WKH $XGLW
0DUFK 7KH QHFHVVDU\ TXRUXP ZDV SUHVHQW IRU DOO FRPPLWWHH IRU UHYLHZ DQG UHFRPPHQGDWLRQ WR WKH %RDUG
0HHWLQJV 7KH &RPSRVLWLRQ RI WKH &65 &RPPLWWHH DV DW IRUWKHLUDSSURYDO
0DUFKDQGWKHGHWDLOVRIPHHWLQJVRIWKH&RPPLWWHH $V UHTXLUHG XQGHU &ODXVH WKH &RPSDQ\ KDV
DUHDVXQGHU IRUPXODWHG D SROLF\ RQ GHDOLQJ ZLWK 5HODWHG 3DUW\
7UDQVDFWLRQV 7KH 3ROLF\ LV DYDLODEOH RQ WKH ZHEVLWH RI
6U 1DPH 3RVLWLRQ &DWHJRU\ 1RRI WKH&RPSDQ\:HEOLQNKWWSZZZUD\PRQGLQFUSROLFLHV
1R 0HHWLQJV USWSUSWBSROLF\KWPO
DWWHQGHG
1RQHRIWKHWUDQVDFWLRQVZLWKUHODWHGSDUWLHVZHUHLQFRQIOLFW
ZLWK WKH LQWHUHVW RI WKH &RPSDQ\ $OO WKH WUDQVDFWLRQV DUH
6KUL,' &KDLUPDQ 1RQ([HFXWLYH RI
$JDUZDO ,QGHSHQGHQW LQ WKH QRUPDO FRXUVH RI EXVLQHVV DQG KDYH QR SRWHQWLDO
FRQIOLFWZLWKWKHLQWHUHVWRIWKH&RPSDQ\DWODUJHDQGDUH
6PW1DZD] 0HPEHU 1RQ([HFXWLYH RI FDUULHGRXWRQDQDUP¶VOHQJWKEDVLVRUIDLUYDOXH
*DXWDP 3URPRWHU
6LQJKDQLD F 'HWDLOVRIQRQFRPSOLDQFHE\WKH&RPSDQ\SHQDOWLHVDQG
VWULFWXUHV LPSRVHG RQ WKH &RPSDQ\ E\ 6WRFN ([FKDQJHV
6KUL3UDGHHS 0HPEHU 1RQ([HFXWLYH RI RU6(%,RUDQ\VWDWXWRU\DXWKRULW\RQDQ\PDWWHUUHODWHGWR
*XKD ,QGHSHQGHQW FDSLWDOPDUNHWVGXULQJWKHODVWWKUHH\HDUV
6KUL%RPDQ 0HPEHU 1RQ([HFXWLYH RI 7KH &RPSDQ\ KDV FRPSOLHG ZLWK DOO UHTXLUHPHQWV RI WKH
,UDQL ,QGHSHQGHQW /LVWLQJ$JUHHPHQWVHQWHUHGLQWRZLWKWKH6WRFN([FKDQJHVDV
ZHOODVWKHUHJXODWLRQVDQGJXLGHOLQHVRI6(%,&RQVHTXHQWO\
( ,1'(3(1'(17',5(&7256
0((7,1* WKHUHZHUHQRVWULFWXUHVRUSHQDOWLHVLPSRVHGE\HLWKHU6(%,
'XULQJ WKH \HDU XQGHU UHYLHZ WKH ,QGHSHQGHQW 'LUHFWRUV RU WKH 6WRFN ([FKDQJHV RU DQ\ VWDWXWRU\ DXWKRULW\ IRU QRQ
PHWRQ0DUFKLQWHUDOLDWRGLVFXVV FRPSOLDQFH RI DQ\ PDWWHU UHODWHG WR WKH FDSLWDO PDUNHWV
GXULQJWKHODVWWKUHH\HDUV
x (YDOXDWLRQ RI SHUIRUPDQFH RI 1RQ,QGHSHQGHQW
'LUHFWRUVDQGWKH%RDUGRI'LUHFWRUVDVDZKROH G :KLVWOH%ORZHU3ROLF\
3XUVXDQW WR 6HFWLRQ DQG RI WKH &RPSDQLHV
x (YDOXDWLRQ RI SHUIRUPDQFH RI WKH &KDLUPDQ RI WKH
$FW DQG &ODXVH RI WKH /LVWLQJ $JUHHPHQW WKH
&RPSDQ\ WDNLQJ LQWR DFFRXQW WKH YLHZV RI WKH &RPSDQ\ KDV IRUPXODWHG :KLVWOH %ORZHU 3ROLF\ IRU YLJLO
([HFXWLYHDQG1RQ([HFXWLYH'LUHFWRUV PHFKDQLVP IRU 'LUHFWRUV DQG HPSOR\HHV WR UHSRUW WR WKH
x (YDOXDWLRQRIWKHTXDOLW\FRQWHQWDQGWLPHOLQHVRIIORZ PDQDJHPHQW DERXW WKH XQHWKLFDO EHKDYLRU IUDXG RU
RI LQIRUPDWLRQ EHWZHHQ WKH 0DQDJHPHQW DQG WKH YLRODWLRQRI&RPSDQ\¶VFRGHRIFRQGXFW7KHPHFKDQLVP
%RDUGWKDWLVQHFHVVDU\IRUWKH%RDUGWRHIIHFWLYHO\DQG SURYLGHV IRU DGHTXDWH VDIHJXDUGV DJDLQVW YLFWLPLVDWLRQ RI
UHDVRQDEO\SHUIRUPLWVGXWLHV HPSOR\HHV DQG 'LUHFWRUV ZKR XVH VXFK PHFKDQLVP DQG
PDNHV SURYLVLRQ IRU GLUHFW DFFHVV WR WKH &KDLUSHUVRQ RI
$OOWKH,QGHSHQGHQW'LUHFWRUVZHUHSUHVHQWIRUWKLV0HHWLQJ WKH $XGLW &RPPLWWHH LQ H[FHSWLRQDO FDVHV 1RQH RI WKH
SHUVRQQHORIWKH&RPSDQ\KDVEHHQGHQLHGDFFHVVWRWKH
68%6,',$5<&203$1,(6
$XGLW&RPPLWWHH
7KH&RPSDQ\GRHVQRWKDYHDQ\PDWHULDOVXEVLGLDU\DVGHILQHG H 'LVFORVXUHRI$FFRXQWLQJ7UHDWPHQW
XQGHU &ODXVH RI WKH /LVWLQJ $JUHHPHQW +RZHYHU WKH
&RPSDQ\ KDV IRUPXODWHG WKH 0DWHULDO 6XEVLGLDU\ SROLF\ DQG ,Q WKH SUHSDUDWLRQ RI WKH ILQDQFLDO VWDWHPHQWV WKH
XSORDGHG RQ WKH ZHEVLWH RI WKH &RPSDQ\ :HEOLQN KWWS &RPSDQ\KDVIROORZHGWKH$FFRXQWLQJ6WDQGDUGVUHIHUUHG
ZZZUD\PRQGLQFUSROLFLHVPVSPVBSROLF\KWPO WRLQ6HFWLRQRIWKH&RPSDQLHV$FW7KHVLJQLILFDQW
DFFRXQWLQJSROLFLHVZKLFKDUHFRQVLVWHQWO\DSSOLHGDUHVHW
$)),50$7,216$1'',6&/2685(6 RXWLQWKH1RWHVWRWKH)LQDQFLDO6WDWHPHQWV
D &RPSOLDQFHVZLWK*RYHUQDQFH)UDPHZRUN I 5LVN0DQDJHPHQW
7KH &RPSDQ\ LV LQ FRPSOLDQFH ZLWK DOO PDQGDWRU\ %XVLQHVV ULVN HYDOXDWLRQ DQG PDQDJHPHQW LV DQ RQJRLQJ
UHTXLUHPHQWVRI&ODXVHRIWKH/LVWLQJ$JUHHPHQW SURFHVVZLWKLQWKH&RPSDQ\7KHDVVHVVPHQWLVSHULRGLFDOO\
H[DPLQHGE\WKH%RDUG
E 5HODWHGSDUW\WUDQVDFWLRQV
J 1RQPDQGDWRU\UHTXLUHPHQWV
$OO WUDQVDFWLRQV HQWHUHG LQWR ZLWK WKH 5HODWHG 3DUWLHV DV
GHILQHGXQGHUWKH&RPSDQLHV$FWDQG&ODXVHRI $GRSWLRQ RI QRQPDQGDWRU\ UHTXLUHPHQWV RI &ODXVH RI
WKH/LVWLQJ$JUHHPHQWGXULQJWKHILQDQFLDO\HDUZHUHLQWKH WKH/LVWLQJ$JUHHPHQWLVEHLQJUHYLHZHGE\WKH%RDUGIURP
RUGLQDU\FRXUVHRIEXVLQHVVDQGRQDUP¶VOHQJWKEDVLVDQGGR WLPHWRWLPH
&RUSRUDWH*RYHUQDQFH5HSRUW
6+$5(+2/'(5,1)250$7,21
*(1(5$/%2'<0((7,1*
'(7$,/62)/$677+5(($118$/*(1(5$/0((7,1*6+(/'
7KH&RPSDQ\DVSHUWKH3RVWDO%DOORWQRWLFHGDWHG2FWREHUSDVVHG)RXU2UGLQDU\5HVROXWLRQVIRUDSSRLQWPHQW
RI,QGHSHQGHQW'LUHFWRUV7KH&RPSDQ\KDGDSSRLQWHG6KUL$VKLVK%KDWW3UDFWLFLQJ&RPSDQ\6HFUHWDU\DV6FUXWLQL]HUWR
FRQGXFWWKH3RVWDO%DOORWSURFHVVLQDIDLUDQGWUDQVSDUHQWPDQQHU3RVWDO%DOORW)RUPVUHFHLYHGXSWRWKHFORVHRIZRUNLQJ
KRXUVRQ'HFHPEHUKDGEHHQFRQVLGHUHGDQGWKHUHVXOWRI3RVWDO%DOORWZDVDQQRXQFHGRQ'HFHPEHUDW
WKH5HJLVWHUHG2IILFHRIWKH&RPSDQ\7KHGHWDLOVRIUHVXOWVRI3RVWDO%DOORWDUHDVXQGHU
&RUSRUDWH*RYHUQDQFH5HSRUW
3URPRWHU3XEOLF 1RRIVKDUHV 1RRIYRWHV RIYRWHV3ROOHGRQ 1RRI9RWHVă 1RRI9RWHV RI9RWHVLQIDYRXU RI9RWHV
KHOG SROOHG RXWVWDQGLQJVKDUHV LQIDYRXU ăDJDLQVW RQYRWHVSROOHG DJDLQVWRQYRWHV
SROOHG
2UGLQDU\5HVROXWLRQ1R$SSRLQWPHQWRI6KUL,VKZDU'DV$JDUZDODVDQ,QGHSHQGHQW'LUHFWRU
2UGLQDU\5HVROXWLRQ1R$SSRLQWPHQWRI6KUL1DEDQNXU*XSWDDVDQ,QGHSHQGHQW'LUHFWRU
2UGLQDU\5HVROXWLRQ1R$SSRLQWPHQWRI6KUL3UDGHHS*XKDDVDQ,QGHSHQGHQW'LUHFWRU
2UGLQDU\5HVROXWLRQ1R$SSRLQWPHQWRI6KUL%RPDQ5XVWRP,UDQLDVDQ,QGHSHQGHQW'LUHFWRU
$118$/ *(1(5$/ 0((7,1* )25 7+( ),1$1&,$/ <($5 6U 3DUWLFXODUVRI4XDUWHU 7HQWDWLYHGDWHV
1R
)LUVW4XDUWHU5HVXOWV ,QRUEHIRUHWKH)RXUWKZHHNRI
'$<$1''$7( 0RQGD\-XQH
-XO\
7,0( $0 6HFRQG4XDUWHU +DOI ,QRUEHIRUHWKH)RXUWKZHHNRI
<HDUO\5HVXOWV 2FWREHU
9(18( 3ORW1R+1R
9LOODJH=DGJDRQ5DWQDJLUL 7KLUG4XDUWHU 1LQH ,QRUEHIRUHWKH)RXUWKZHHNRI
5HJLVWHUHG2IILFHRIWKH PRQWKV5HVXOWV -DQXDU\
&RPSDQ\ 0DKDUDVKWUD
)RXUWK4XDUWHU $QQXDO ,QRUEHIRUHWKH)RXUWKZHHNRI
%22.&/2685('$7(6)25 0D\WR-XQH 5HVXOWV $SULO
',9,'(1' ERWKGD\VLQFOXVLYH
'LYLGHQG
/$67'$7(2)5(&(,372) 6DWXUGD\-XQH 7KH %RDUG RI 'LUHFWRUV DW WKHLU PHHWLQJ KHOG RQ $SULO
352;<)2506 UHFRPPHQGHG GLYLGHQG SD\RXW VXEMHFW WR DSSURYDO RI WKH
VKDUHKROGHUV DW WKH HQVXLQJ $QQXDO *HQHUDO 0HHWLQJ RI `
7HQWDWLYH&DOHQGDUIRU)LQDQFLDO<HDUHQGLQJ0DUFK
SHU VKDUH RQ HTXLW\ VKDUHV RI WKH &RPSDQ\ IRU WKH )LQDQFLDO
7KH WHQWDWLYH GDWHV IRU %RDUG 0HHWLQJV IRU FRQVLGHUDWLRQ RI <HDU7KH'LYLGHQGVKDOOEHSDLGWRWKHPHPEHUVZKRVH
TXDUWHUO\ILQDQFLDOUHVXOWVDUHDVIROORZV QDPHV DSSHDU RQ &RPSDQ\¶V 5HJLVWHU RI 0HPEHUV DV RQ
&RUSRUDWH*RYHUQDQFH5HSRUW
0D\ LQ UHVSHFW RI SK\VLFDO VKDUHKROGHUV ,Q UHVSHFW RI $VSHU&ODXVH$RI/LVWLQJ$JUHHPHQWWKHGHWDLOVRIWKHVKDUHV
'HPDW 6KDUHKROGHUV GLYLGHQG ZLOO EH SD\DEOH RQ WKH EDVLV RI LQWKH6XVSHQVH$FFRXQWDUHDVIROORZV
EHQHILFLDORZQHUVKLSDVSHUGHWDLOVIXUQLVKHGE\16'/&'6/7KH
GLYLGHQG LI GHFODUHG DW WKH $QQXDO *HQHUDO 0HHWLQJ VKDOO EH $JJUHJDWH 1XPEHURI 1XPEHURI $JJUHJDWH 7KDWWKHYRWLQJ
SDLGRQRUDIWHU-XQH 1XPEHURI VKDUHKROGHUV VKDUHKROGHUV QXPEHURI ULJKWVRQWKHVH
6KDUHKROGHUV ZKR WRZKRP VKDUHKROGHUV VKDUHVVKDOO
'LYLGHQG+LVWRU\IRUWKHODVW\HDUV DQGWKH DSSURDFKHG VKDUHVZHUH DQGWKH UHPDLQIUR]HQ
2XWVWDQGLQJ WKH&RPSDQ\ WUDQVIHUUHG RXWVWDQGLQJ WLOOWKHVKDUHV
7KH 7DEOH EHORZ KLJKOLJKWV WKH KLVWRU\ RI 'LYLGHQG GHFODUHG E\
6KDUHVLQWKH IRUWUDQVIHURI IURPVXVSHQVH VKDUHVLQWKH DUHWUDQVIHUUHG
WKH&RPSDQ\LQWKHODVW\HDUV VXVSHQVH VKDUHVIURP DFFRXQWGXULQJ VXVSHQVH WRWKHULJKWIXO
DFFRXQW VXVSHQVH WKH\HDU DFFRXQWO\LQJ RZQHU
6U <HDURI 'DWHRI'HFODUDWLRQRI $PRXQWGHFODUHG O\LQJDWWKH DFFRXQWGXULQJ DWWKHHQGRI
1R 'HFODUDWLRQRI 'LYLGHQG SHUVKDUH EHJLQQLQJRI WKH\HDU WKH\HDU
'LYLGHQG WKH\HDU
&RUSRUDWH*RYHUQDQFH5HSRUW
6U
1&'KROGHUVRIWKH&RPSDQ\DVRQ0DUFK
RI
3DUWLFXODUV 1RRI6KDUHV
1R KROGLQJ 6U 1DPHRIWKH'HEHQWXUHKROGHUV 1RRI1&' &RXSRQ
1RQLQVWLWXWLRQV 1R KHOGIDFH 5DWH
YDOXHRI`
D %RGLHV&RUSRUDWH /DFVHDFK
E ,QGLYLGXDOV +')&7UXVWHH&RPSDQ\/WG
, +ROGLQJQRPLQDOVKDUH +')&6KRUW7HUP3ODQ
FDSLWDOXSWR` ODF 87,,QFRPH2SSRUWXQLWLHV)XQG
,, +ROGLQJQRPLQDOVKDUH .RWDN0DKLQGUD7UXVWHH&R/WG =HUR
FDSLWDOLQH[FHVVRI` ODF $&.RWDN)L[HG0DWXULW\3ODQ
F 7UXVWV 6HULHV
+')&7UXVWHH&RPSDQ\/WG =HUR
G 15,DQG)RUHLJQ1DWLRQDO
$&+')&)03'-DQXDU\
H &OHDULQJ0HPEHU
6XE7RWDO% +')&7UXVWHH&RPSDQ\/WG
$&+')&&RUSRUDWH'HEW
7RWDO% %%
2SSRUWXQLWLHV)XQG
& 6KDUHV KHOG E\ &XVWRGLDQV DQG .RWDN0DKLQGUD7UXVWHH&R/WG
DJDLQVW ZKLFK 'HSRVLWRU\ 5HFHLSWV $&.RWDN)L[HG0DWXULW\3ODQ
KDYHEHHQLVVXHG 6HULHV
*5$1'727$/$%& +')&7UXVWHH&RPSDQ\/WG =HUR
'(0$7(5,$/,6$7,212)6+$5(6$1'/,48,',7< $&+')&&RUSRUDWH'HEW
2SSRUWXQLWLHV)XQG
RI WKH HTXLW\ VKDUHV RI WKH &RPSDQ\ KDYH EHHQ +')&7UXVWHH&RPSDQ\/WG =HUR
GHPDWHULDOL]HG16'/ăDQG&'6/DVRQ0DUFK $&+')&)03'0DUFK
7KH&RPSDQ\KDVHQWHUHGLQWRDJUHHPHQWVZLWK1DWLRQDO
6HFXULWLHV 'HSRVLWRU\ /LPLWHG 16'/ DQG &HQWUDO 'HSRVLWRU\
+')&7UXVWHH&RPSDQ\/WG
6HUYLFHV ,QGLD /LPLWHG &'6/ ZKHUHE\ VKDUHKROGHUV KDYH DQ
$&+')&&RUSRUDWH'HEW
RSWLRQWRGHPDWHULDOLVHWKHLUVKDUHVZLWKHLWKHURIWKH'HSRVLWRULHV 2SSRUWXQLWLHV)XQG
5(&21&,/,$7,212)6+$5(&$3,7$/$8',75(3257 +')&7UXVWHH&RPSDQ\/WG
+')&6KRUW7HUP3ODQ
$VVWLSXODWHGE\6(%,DTXDOLILHG3UDFWLFLQJ&RPSDQ\6HFUHWDU\
FDUULHV RXW 6HFUHWDULDO $XGLW WR UHFRQFLOH WKH WRWDO DGPLWWHG .RWDN0DKLQGUD7UXVWHH&R/WG
FDSLWDO ZLWK 1DWLRQDO 6HFXULWLHV 'HSRVLWRU\ /LPLWHG 16'/ DQG $&.RWDN)L[HG0DWXULW\3ODQ
&HQWUDO'HSRVLWRU\6HUYLFHV,QGLD/LPLWHG&'6/DQGWKHWRWDO 6HULHV
LVVXHG DQG OLVWHG FDSLWDO 7KLV DXGLW LV FDUULHG RXW HYHU\ TXDUWHU +')&7UXVWHH&RPSDQ\/WG =HUR
DQG WKH UHSRUW WKHUHRQ LV VXEPLWWHG WR WKH 6WRFN ([FKDQJHV $&+LJK,QWHUHVW)XQG6KRUW
ZKHUH WKH &RPSDQ\
V VKDUHV DUH OLVWHG 7KH DXGLW FRQILUPV 7HUP3ODQ
WKDW WKH WRWDO /LVWHG DQG 3DLGXS &DSLWDO LV LQ DJUHHPHQW ZLWK +')&7UXVWHH&RPSDQ\/WG
WKHDJJUHJDWHRIWKHWRWDOQXPEHURIVKDUHVLQGHPDWHULDOLVHG $&+LJK,QWHUHVW)XQG6KRUW
IRUPKHOGZLWK16'/DQG&'6/DQGWRWDOQXPEHURIVKDUHVLQ 7HUP3ODQ
SK\VLFDOIRUP +')&7UXVWHH&RPSDQ\/WG
7RS6KDUHKROGHUVDVRQ0DUFKRWKHUWKDQ3URPRWHU $&+')&)03'0DUFK
3URPRWHU*URXS
1367UXVW$&87,5HWLUHPHQW
6U 1DPHRIWKH6KDUHKROGHU 1RRI RI 6ROXWLRQV3HQVLRQ)XQG6FKHPH
1R 6KDUHV +ROGLQJ 6WDWH*RYW
KHOG 67$58QLRQ'DL,FKL/LIH
/LIH,QVXUDQFH&RUSRUDWLRQRI,QGLD ,QVXUDQFH&RPSDQ\/WG
)LQTXHVW6HFXULWLHV3ULYDWH/LPLWHG +')&7UXVWHH&RPSDQ\/WG
5HOLDQFH&DSLWDO7UXVWHH&R/WG $&+LJK,QWHUHVW)XQG6KRUW
6KUL$QDQW6LQJKDQLD 7HUP3ODQ
6PW8MMZDOD$6LQJKDQLD %DQNRI0DKDUDVKWUD
*HQHUDO ,QVXUDQFH &RUSRUDWLRQ RI -KDUNKDQG*UDPLQ%DQN
,QGLD 1367UXVW$&87,5HWLUHPHQW
$$',)LQDQFLDO$GYLVRUV//3 6ROXWLRQV3HQVLRQ)XQG6FKHPH
6KUL%KDUDW-D\DQWLODO3DWHO &HQWUDO*RYW
'LPHQVLRQDO(PHUJLQJ0DUNHW9DOXH 87,,QFRPH2SSRUWXQLWLHV)XQG
)XQG
7RWDO
%LUOD6XQ/LIH7UXVWHH&R/WG
&RUSRUDWH*RYHUQDQFH5HSRUW
2XWVWDQGLQJ *'5V :DUUDQWV DQG &RQYHUWLEOH %RQGV %6( 16(
FRQYHUVLRQGDWHDQGOLNHO\LPSDFWRQHTXLW\
0217+ +,*+ /2: 92/80( +,*+ /2: 92/80(
7KHUH ZHUH RXWVWDQGLQJ *'5V UHSUHVHQWLQJ ` ` 1RV ` ` 1RV
HTXLW\VKDUHVRIWKHWRWDOVKDUH&DSLWDODVRQ0DUFK
6HSWHPEHU
$OO *'5V DUH LVVXHG HDFK *'5 UHSUHVHQWV XQGHUO\LQJ
HTXLW\VKDUHV 2FWREHU
7KH &RPSDQ\¶V *'5 DUH /LVWHG RQ WKH /X[HPERXUJ 6WRFN 1RYHPEHU
([FKDQJH 'HFHPEHU
'HWDLOV RI 6KDUHV*'5V /LVWHG RQ 6WRFN ([FKDQJHV DV RQ -DQXDU\
0DUFK
)HEUXDU\
6WRFN([FKDQJH 6WRFN&RGH 0DUFK
%6(/LPLWHG%6(
1DWLRQDO6WRFN([FKDQJHRI,QGLD/LPLWHG 5D\PRQG(4 3DUWLFXODUV %6( 16(
16( &ORVLQJVKDUHSULFHDVRQ0DUFK`
/X[HPERXUJ6WRFN([FKDQJH*'5V 86< 0DUNHW&DSLWDOLVDWLRQDVRQ0DUFK`LQODF
$QQXDO/LVWLQJIHHVIRU)LQDQFLDO<HDUKDVEHHQSDLGWR 6WRFN3HUIRUPDQFHYLVjYLV,QGH[
%6(DQG16(7KHDQQXDOOLVWLQJIHHVKDVEHHQSDLGWR/X[HPERXUJ
6WRFN([FKDQJHIRUWKH&DOHQGDU<HDU
,QWHUQDWLRQDO6WDQGDUG,GHQWLILFDWLRQ ,1($
1XPEHU,6,1
8QVHFXUHG5HGHHPDEOH1RQ&RQYHUWLEOH'HEHQWXUHV1&'VRI
IDFHYDOXH` HDFKDUHOLVWHGRQWKH:KROHVDOH'HEW
0DUNHW VHJPHQW RI 1DWLRQDO 6WRFN ([FKDQJH RI ,QGLD /LPLWHG
GHWDLOVRIZKLFKDUHDVXQGHU
&RUSRUDWH*RYHUQDQFH5HSRUW
WKH 6WRFN ([FKDQJHV YL] %6( /LPLWHG DQG 1DWLRQDO 6WRFN 1RPLQDWLRQ IDFLOLW\ LQ UHVSHFW RI VKDUHV KHOG LQ HOHFWURQLF IRUP
([FKDQJH RI ,QGLD /LPLWHG DUH ILOHG HOHFWURQLFDOO\ 7KH LVDOVRDYDLODEOHZLWKWKH'HSRVLWRU\3DUWLFLSDQWVDVSHUWKHE\H
&RPSDQ\KDVFRPSOLHGZLWKILOLQJVXEPLVVLRQVWKURXJK%6(¶V ODZVDQGEXVLQHVVUXOHVDSSOLFDEOHWR16'/DQG&'6/1RPLQDWLRQ
%6(/LVWLQJ&HQWUH/LNHZLVHWKHVDLGLQIRUPDWLRQLVDOVRILOHG IRUPVFDQEHREWDLQHGIURPWKH&RPSDQ\¶V5HJLVWUDUDQG6KDUH
HOHFWURQLFDOO\ZLWK16(WKURXJK16(¶V1($36SRUWDO 7UDQVIHU$JHQW
YLL $VHSDUDWHGHGLFDWHGVHFWLRQXQGHU³,QYHVWRU5HODWLRQV´RQ (OHFWURQLF&OHDULQJ6HUYLFH
WKH&RPSDQ\¶VZHEVLWHJLYHVWKHLQIRUPDWLRQRQXQFODLPHG
7KH 6HFXULWLHV DQG ([FKDQJH %RDUG RI ,QGLD 6(%, KDV PDGH LW
GLYLGHQGVTXDUWHUO\FRPSOLDQFHZLWKWKH6WRFN([FKDQJHV
PDQGDWRU\ IRU DOO FRPSDQLHV WR XVH WKH EDQN DFFRXQW GHWDLOV
DQG RWKHU UHOHYDQW LQIRUPDWLRQ RI LQWHUHVW WR WKH LQYHVWRUV
IXUQLVKHGE\WKH'HSRVLWRULHVIRUGHSRVLWLQJGLYLGHQGV'LYLGHQG
SXEOLF
ZLOO EH FUHGLWHG WR WKH 0HPEHUV¶ EDQN DFFRXQW WKURXJK 1(&6
6KDUH7UDQVIHU6\VWHP ZKHUHYHU FRPSOHWH FRUH EDQNLQJ GHWDLOV DUH DYDLODEOH ZLWK
WKH&RPSDQ\,QFDVHZKHUHWKHFRUHEDQNLQJGHWDLOVDUHQRW
7KHWUDQVIHURIVKDUHVLQSK\VLFDOIRUPLVSURFHVVHGDQGFRPSOHWHG
DYDLODEOHGLYLGHQGZDUUDQWVZLOOEHLVVXHGWRWKH0HPEHUVZLWK
E\ 5HJLVWUDU 7UDQVIHU $JHQW ZLWKLQ D SHULRG RI VHYHQ GD\V
EDQN GHWDLOV SULQWHG WKHUHRQ DV DYDLODEOH LQ WKH &RPSDQ\¶V
IURP WKH GDWH RI UHFHLSW WKHUHRI SURYLGHG DOO WKH GRFXPHQWV
UHFRUGV 7KLV HQVXUHV WKDW WKH GLYLGHQG ZDUUDQWV HYHQ LI ORVW RU
DUH LQ RUGHU ,Q FDVH RI VKDUHV LQ HOHFWURQLF IRUP WKH WUDQVIHUV
VWROHQFDQQRWEHXVHGIRUDQ\SXUSRVHRWKHUWKDQIRUGHSRVLWLQJ
DUH SURFHVVHG E\ 16'/&'6/ WKURXJK UHVSHFWLYH 'HSRVLWRU\
WKHPRQH\LQWKHDFFRXQWVVSHFLILHGRQWKHGLYLGHQGZDUUDQWV
3DUWLFLSDQWV,QFRPSOLDQFHZLWKWKH/LVWLQJ$JUHHPHQWZLWKWKH
DQGHQVXUHVVDIHW\IRUWKHLQYHVWRUV7KH&RPSDQ\FRPSOLHVZLWK
6WRFN ([FKDQJHV D 3UDFWLFLQJ &RPSDQ\ 6HFUHWDU\ FDUULHV RXW
WKH6(%,UHTXLUHPHQW
DXGLWRIWKH6\VWHPRI7UDQVIHUDQGDFHUWLILFDWHWRWKDWHIIHFWLV
LVVXHG 6HUYLFHRIGRFXPHQWVWKURXJKHOHFWURQLFPRGH
1RPLQDWLRQ $VDSDUWRI*UHHQ,QLWLDWLYHVWKHPHPEHUVZKRZLVKWRUHFHLYH
WKHQRWLFHGRFXPHQWVWKURXJKHPDLOPD\NLQGO\LQWLPDWHWKHLU
,QGLYLGXDOVKDUHKROGHUVKROGLQJVKDUHVVLQJO\RUMRLQWO\LQSK\VLFDO
HPDLO DGGUHVV WR WKH &RPSDQ\¶V 5HJLVWUDU DQG 6KDUH 7UDQVIHU
IRUPFDQQRPLQDWHDSHUVRQLQZKRVHQDPHWKHVKDUHVVKDOOEH
$JHQW /LQN ,QWLPH ,QGLD 3ULYDWH /LPLWHG WR WKHLU GHGLFDWHG
WUDQVIHUDEOH LQ FDVH RI GHDWK RI WKH UHJLVWHUHG VKDUHKROGHUV
HPDLOLGLH³UD\PRQG#OLQNLQWLPHFRLQ´
$GGUHVVIRU&RUUHVSRQGHQFH
7H[WLOH'LYLVLRQ
-DOJDRQ 1R(DQG(0,'&$UHD3KDVH,,$MDQWD5RDG-DOJDRQ0DKDUDVKWUD
&KKLQGZDUD %$.91%RUHJDRQ,QGXVWULDO*URZWK&HQWUH.DLODVK1DJDU7HKVLO6DXVHU'LVW&KKLQGZDUD
0DGK\D3UDGHVK
9DSL 1+1R.KDGNL8GZDGD7DOXND3DUGL'LVWULFW9DOVDG*XMDUDW
$YLDWLRQ'LYLVLRQ
7KDQH 2OG$SSDUHO%XLOGLQJ)LUVW)ORRU-HNHJUDP3RNKUDQ5RDG1R7KDQH:HVWă
&RUSRUDWH*RYHUQDQFH5HSRUW
&203/,$1&(&(57,),&$7(2)7+(67$78725<$8',7256
7KH6WDWXWRU\$XGLWRUVKDYHFHUWLILHGWKDWWKH&RPSDQ\KDVFRPSOLHGZLWKWKHFRQGLWLRQVRI&RUSRUDWH*RYHUQDQFHDVVWLSXODWHGLQ
&ODXVHRIWKH/LVWLQJ$JUHHPHQWZLWKWKH6WRFN([FKDQJHVDQGWKHVDPHLVDQQH[HGWRWKLV5HSRUW
'(&/$5$7,216
&RPSOLDQFHZLWKWKH&RGHRI%XVLQHVV&RQGXFWDQG(WKLFV
$V SURYLGHG XQGHU &ODXVH RI WKH /LVWLQJ $JUHHPHQW ZLWK WKH 6WRFN ([FKDQJHV DOO %RDUG 0HPEHUV DQG 6HQLRU 0DQDJHPHQW
3HUVRQQHOKDYHDIILUPHGFRPSOLDQFHZLWK&RPSDQ\
V&RGHRI%XVLQHVV&RQGXFWDQG(WKLFVIRUWKH\HDUHQGHG0DUFK
)RU5D\PRQG/LPLWHG
*DXWDP+DUL6LQJKDQLD
&KDLUPDQDQG0DQDJLQJ'LUHFWRU
0XPEDL$SULO
&(2&)2&HUWLILFDWLRQ
$VUHTXLUHGE\VXEFODXVH,;RI&ODXVHRIWKH/LVWLQJ$JUHHPHQWZLWKWKH6WRFN([FKDQJHVZHKDYHFHUWLILHGWRWKH%RDUGWKDWIRU
WKHILQDQFLDO\HDUHQGHG0DUFKWKH&RPSDQ\KDVFRPSOLHGZLWKWKHUHTXLUHPHQWVRIWKHVDLGVXEFODXVH
)RU5D\PRQG/LPLWHG )RU5D\PRQG/LPLWHG
*DXWDP+DUL6LQJKDQLD 06KLYNXPDU
&KDLUPDQDQG0DQDJLQJ'LUHFWRU &KLHI)LQDQFLDO2IILFHU
0XPEDL$SULO
$8',7256¶&(57,),&$7(5(*$5',1*&203/,$1&(2)&21',7,2162)&25325$7(*29(51$1&(
7RWKH0HPEHUVRI5D\PRQG/LPLWHG
:HKDYHH[DPLQHGWKHFRPSOLDQFHRIFRQGLWLRQVRI&RUSRUDWH*RYHUQDQFHE\5D\PRQG/LPLWHGIRUWKH\HDUHQGHG0DUFK
DVVWLSXODWHGLQ&ODXVHRIWKH/LVWLQJ$JUHHPHQWVRIWKHVDLG&RPSDQ\ZLWKVWRFNH[FKDQJHVLQ,QGLD
7KHFRPSOLDQFHRIFRQGLWLRQVRI&RUSRUDWH*RYHUQDQFHLVWKHUHVSRQVLELOLW\RIWKH&RPSDQ\¶VPDQDJHPHQW2XUH[DPLQDWLRQZDV
FDUULHGRXWLQDFFRUGDQFHZLWKWKH*XLGDQFH1RWHRQ&HUWLILFDWLRQRI&RUSRUDWH*RYHUQDQFHDVVWLSXODWHGLQ&ODXVHRIWKH
/LVWLQJ$JUHHPHQWLVVXHGE\WKH,QVWLWXWHRI&KDUWHUHG$FFRXQWDQWVRI,QGLDDQGZDVOLPLWHGWRSURFHGXUHVDQGLPSOHPHQWDWLRQ
WKHUHRIDGRSWHGE\WKH&RPSDQ\IRUHQVXULQJWKHFRPSOLDQFHRIWKHFRQGLWLRQVRI&RUSRUDWH*RYHUQDQFH,WLVQHLWKHUDQDXGLWQRU
DQH[SUHVVLRQRIRSLQLRQRQWKHILQDQFLDOVWDWHPHQWVRIWKH&RPSDQ\
:HFHUWLI\WKDWWKH&RPSDQ\KDVFRPSOLHGZLWKWKHFRQGLWLRQVRI&RUSRUDWH*RYHUQDQFHDVVWLSXODWHGLQWKHDERYHPHQWLRQHG
/LVWLQJ$JUHHPHQW
:HVWDWHWKDWVXFKFRPSOLDQFHLVQHLWKHUDQDVVXUDQFHDVWRWKHIXWXUHYLDELOLW\RIWKH&RPSDQ\QRUWKHHIILFLHQF\RUHIIHFWLYHQHVV
ZLWKZKLFKWKHPDQDJHPHQWKDVFRQGXFWHGWKHDIIDLUVRIWKH&RPSDQ\
)RU'DODO 6KDK
&KDUWHUHG$FFRXQWDQWV
)LUP5HJLVWUDWLRQ1XPEHU:
$QLVK3$PLQ
3DUWQHU
0HPEHUVKLS
0XPEDL
$SULO
&RUSRUDWH*RYHUQDQFH5HSRUW
,1'(3(1'(17$8',725¶65(3257
727+(0(0%(562)5$<021'/,0,7('
5(3257217+(),1$1&,$/67$7(0(176
:HKDYHDXGLWHGWKHDFFRPSDQ\LQJVWDQGDORQHILQDQFLDOVWDWHPHQWVRI5D\PRQG/LPLWHG³WKH&RPSDQ\´ZKLFKFRPSULVH
WKH%DODQFH6KHHWDVDW0DUFKWKH6WDWHPHQWRI3URILWDQG/RVVWKH&DVK)ORZ6WDWHPHQWIRUWKH\HDUWKHQHQGHGDQG
DVXPPDU\RIWKHVLJQLILFDQWDFFRXQWLQJSROLFLHVDQGRWKHUH[SODQDWRU\LQIRUPDWLRQ
0DQDJHPHQW¶V5HVSRQVLELOLW\IRUWKH)LQDQFLDO6WDWHPHQWV
7KH&RPSDQ\¶V%RDUGRI'LUHFWRUVLVUHVSRQVLEOHIRUWKHPDWWHUVVWDWHGLQ6HFWLRQRIWKH&RPSDQLHV$FW³WKH$FW´
ZLWK UHVSHFW WR WKH SUHSDUDWLRQ RI WKHVH ILQDQFLDO VWDWHPHQWV WR JLYH D WUXH DQG IDLU YLHZ RI WKH ILQDQFLDO SRVLWLRQ ILQDQFLDO
SHUIRUPDQFH DQG FDVK IORZV RI WKH &RPSDQ\ LQ DFFRUGDQFH ZLWK WKH DFFRXQWLQJ SULQFLSOHV JHQHUDOO\ DFFHSWHG LQ ,QGLD
LQFOXGLQJWKHDFFRXQWLQJ6WDQGDUGVVSHFLILHGXQGHU6HFWLRQRIWKH$FWUHDGZLWK5XOHRIWKH&RPSDQLHV$FFRXQWV5XOHV
7KLVUHVSRQVLELOLW\DOVRLQFOXGHVPDLQWHQDQFHRIDGHTXDWHDFFRXQWLQJUHFRUGVLQDFFRUGDQFHZLWKWKHSURYLVLRQVRIWKH
$FWIRUVDIHJXDUGLQJRIWKHDVVHWVRIWKH&RPSDQ\DQGIRUSUHYHQWLQJDQGGHWHFWLQJIUDXGVDQGRWKHULUUHJXODULWLHVVHOHFWLRQ
DQGDSSOLFDWLRQRIDSSURSULDWHDFFRXQWLQJSROLFLHVPDNLQJMXGJPHQWVDQGHVWLPDWHVWKDWDUHUHDVRQDEOHDQGSUXGHQWDQG
GHVLJQLPSOHPHQWDWLRQDQGPDLQWHQDQFHRIDGHTXDWHLQWHUQDOILQDQFLDOFRQWUROVWKDWZHUHRSHUDWLQJHIIHFWLYHO\IRUHQVXULQJ
WKH DFFXUDF\ DQG FRPSOHWHQHVV RI WKH DFFRXQWLQJ UHFRUGV UHOHYDQW WR WKH SUHSDUDWLRQ DQG SUHVHQWDWLRQ RI WKH ILQDQFLDO
VWDWHPHQWVWKDWJLYHDWUXHDQGIDLUYLHZDQGDUHIUHHIURPPDWHULDOPLVVWDWHPHQWZKHWKHUGXHWRIUDXGRUHUURU
$XGLWRU¶V5HVSRQVLELOLW\
2XUUHVSRQVLELOLW\LVWRH[SUHVVDQRSLQLRQRQWKHVHILQDQFLDOVWDWHPHQWVEDVHGRQRXUDXGLW
:HKDYHWDNHQLQWRDFFRXQWWKHSURYLVLRQVRIWKH$FWDQGWKH5XOHVPDGHWKHUHXQGHULQFOXGLQJWKHDFFRXQWLQJVWDQGDUGVDQG
PDWWHUVZKLFKDUHUHTXLUHGWREHLQFOXGHGLQWKHDXGLWUHSRUW
:HFRQGXFWHGRXUDXGLWLQDFFRUGDQFHZLWKWKH6WDQGDUGVRQ$XGLWLQJVSHFLILHGXQGHU6HFWLRQRIWKH$FWDQGRWKHU
DSSOLFDEOH DXWKRULWDWLYH SURQRXQFHPHQWV LVVXHG E\ WKH ,QVWLWXWH RI &KDUWHUHG $FFRXQWDQWV RI ,QGLD 7KRVH 6WDQGDUGV DQG
SURQRXQFHPHQWV UHTXLUH WKDW ZH FRPSO\ ZLWK HWKLFDO UHTXLUHPHQWV DQG SODQ DQG SHUIRUP WKH DXGLW WR REWDLQ UHDVRQDEOH
DVVXUDQFHDERXWZKHWKHUWKHILQDQFLDOVWDWHPHQWVDUHIUHHIURPPDWHULDOPLVVWDWHPHQW
$Q DXGLW LQYROYHV SHUIRUPLQJ SURFHGXUHV WR REWDLQ DXGLW HYLGHQFH DERXW WKH DPRXQWV DQG WKH GLVFORVXUHV LQ WKH ILQDQFLDO
VWDWHPHQWV 7KH SURFHGXUHV VHOHFWHG GHSHQG RQ WKH DXGLWRU¶V MXGJPHQWLQFOXGLQJ WKH DVVHVVPHQW RI WKH ULVNV RI PDWHULDO
PLVVWDWHPHQWRIWKHILQDQFLDOVWDWHPHQWVZKHWKHUGXHWRIUDXGRUHUURU,QPDNLQJWKRVHULVNDVVHVVPHQWVWKHDXGLWRUFRQVLGHUV
LQWHUQDOILQDQFLDOFRQWUROUHOHYDQWWRWKH&RPSDQ\¶VSUHSDUDWLRQRIWKHILQDQFLDOVWDWHPHQWVWKDWJLYHDWUXHDQGIDLUYLHZLQ
RUGHUWRGHVLJQDXGLWSURFHGXUHVWKDWDUHDSSURSULDWHLQWKHFLUFXPVWDQFHVEXWQRWIRUWKHSXUSRVHRIH[SUHVVLQJDQRSLQLRQRQ
ZKHWKHUWKH&RPSDQ\KDVLQSODFHDQDGHTXDWHLQWHUQDOILQDQFLDOFRQWUROVV\VWHPRYHUILQDQFLDOUHSRUWLQJDQGWKHRSHUDWLQJ
HIIHFWLYHQHVVRIVXFKFRQWUROV$QDXGLWDOVRLQFOXGHVHYDOXDWLQJWKHDSSURSULDWHQHVVRIWKHDFFRXQWLQJSROLFLHVXVHGDQGWKH
UHDVRQDEOHQHVVRIWKHDFFRXQWLQJHVWLPDWHVPDGHE\WKH&RPSDQ\¶V'LUHFWRUVDVZHOODVHYDOXDWLQJWKHRYHUDOOSUHVHQWDWLRQ
RIWKHILQDQFLDOVWDWHPHQWV
:HEHOLHYHWKDWWKHDXGLWHYLGHQFHZHKDYHREWDLQHGLVVXIILFLHQWDQGDSSURSULDWHWRSURYLGHDEDVLVIRURXUDXGLWRSLQLRQRQ
WKHILQDQFLDOVWDWHPHQWV
2SLQLRQ
,Q RXU RSLQLRQ DQG WR WKH EHVW RI RXU LQIRUPDWLRQ DQG DFFRUGLQJ WR WKH H[SODQDWLRQV JLYHQ WR XV WKH DIRUHVDLG ILQDQFLDO
VWDWHPHQWVJLYHWKHLQIRUPDWLRQUHTXLUHGE\WKH$FWLQWKHPDQQHUVRUHTXLUHGDQGJLYHDWUXHDQGIDLUYLHZLQFRQIRUPLW\ZLWK
WKHDFFRXQWLQJSULQFLSOHVJHQHUDOO\DFFHSWHGLQ,QGLDRIWKHVWDWHRIDIIDLUVRIWKH&RPSDQ\DVDW0DUFKDQGLWVSURILW
DQGLWVFDVKIORZVIRUWKH\HDUHQGHGRQWKDWGDWH
5HSRUWRQ2WKHU/HJDODQG5HJXODWRU\5HTXLUHPHQWV
$VUHTXLUHGE\µWKH&RPSDQLHV$XGLWRU¶V5HSRUW2UGHU¶LVVXHGE\WKH&HQWUDO*RYHUQPHQWRI,QGLDLQWHUPVRIVXEVHFWLRQ
RIVHFWLRQRIWKH$FWKHUHLQDIWHUUHIHUUHGWRDVWKH³2UGHU´DQGRQWKHEDVLVRIVXFKFKHFNVRIWKHERRNVDQGUHFRUGV
RIWKH&RPSDQ\DVZHFRQVLGHUHGDSSURSULDWHDQGDFFRUGLQJWRWKHLQIRUPDWLRQDQGH[SODQDWLRQVJLYHQWRXVZHJLYHLQWKH
$QQH[XUHDVWDWHPHQWRQWKHPDWWHUVVSHFLILHGLQSDUDJUDSKVDQGRIWKH2UGHU
$VUHTXLUHGE\6HFWLRQRIWKH$FWZHUHSRUWWKDW
D :HKDYHVRXJKWDQGREWDLQHGDOOWKHLQIRUPDWLRQDQGH[SODQDWLRQVZKLFKWRWKHEHVWRIRXUNQRZOHGJHDQGEHOLHIZHUH
QHFHVVDU\IRUWKHSXUSRVHVRIRXUDXGLW
E ,QRXURSLQLRQSURSHUERRNVRIDFFRXQWDVUHTXLUHGE\ODZKDYHEHHQNHSWE\WKH&RPSDQ\VRIDUDVLWDSSHDUVIURPRXU
H[DPLQDWLRQRIWKRVHERRNV
F 7KH%DODQFH6KHHWWKH6WDWHPHQWRI3URILWDQG/RVVDQGWKH&DVK)ORZ6WDWHPHQWGHDOWZLWKE\WKLV5HSRUWDUHLQDJUHHPHQW
ZLWKWKHERRNVRIDFFRXQW
6WDQGDORQH)LQDQFLDO6WDWHPHQWV
G ,Q RXU RSLQLRQ WKH DIRUHVDLG VWDQGDORQH ILQDQFLDO VWDWHPHQWV FRPSO\ ZLWK WKH $FFRXQWLQJ 6WDQGDUGV VSHFLILHG XQGHU
6HFWLRQRIWKH$FWUHDGZLWK5XOHRIWKH&RPSDQLHV$FFRXQWV5XOHV
H 2QWKHEDVLVRIWKHZULWWHQUHSUHVHQWDWLRQVUHFHLYHGIURPWKHGLUHFWRUVDVRQ0DUFKWDNHQRQUHFRUGE\WKH%RDUG
RI'LUHFWRUVQRQHRIWKHGLUHFWRUVLVGLVTXDOLILHGDVRQ0DUFKIURPEHLQJDSSRLQWHGDVDGLUHFWRULQWHUPVRI6HFWLRQ
RIWKH$FW
I :LWKUHVSHFWWRWKHRWKHUPDWWHUVWREHLQFOXGHGLQWKH$XGLWRU¶V5HSRUWLQDFFRUGDQFHZLWK5XOHRIWKH&RPSDQLHV$XGLW
DQG$XGLWRUV5XOHVLQRXURSLQLRQDQGWRWKHEHVWRIRXUNQRZOHGJHDQGEHOLHIDQGDFFRUGLQJWRWKHLQIRUPDWLRQDQG
H[SODQDWLRQVJLYHQWRXV
L 7KH&RPSDQ\KDVGLVFORVHGWKHLPSDFWRISHQGLQJOLWLJDWLRQVDVDW0DUFKRQLWVILQDQFLDOSRVLWLRQLQLWVILQDQFLDO
VWDWHPHQWV
LL 7KH&RPSDQ\KDVPDGHSURYLVLRQDVDW0DUFKDVUHTXLUHGXQGHUWKHDSSOLFDEOHODZRUDFFRXQWLQJVWDQGDUGV
IRUPDWHULDOIRUHVHHDEOHORVVHVLIDQ\RQORQJWHUPFRQWUDFWVLQFOXGLQJGHULYDWLYHFRQWUDFWV
LLL 7KHUHKDVEHHQQRGHOD\LQWUDQVIHUULQJDPRXQWVUHTXLUHGWREHWUDQVIHUUHGWRWKH,QYHVWRU(GXFDWLRQDQG3URWHFWLRQ
)XQGE\WKH&RPSDQ\GXULQJWKH\HDUHQGHG0DUFK
)RU'DODO 6KDK
&KDUWHUHG$FFRXQWDQWV
)LUP5HJLVWUDWLRQ1XPEHU:
$QLVK3$PLQ
3DUWQHU
0XPEDL$SULO 0HPEHUVKLS1XPEHU
$11(;85(72,1'(3(1'(17$8',7256¶5(3257
5HIHUUHGWRLQSDUDJUDSKRIWKH,QGHSHQGHQW$XGLWRUV¶5HSRUWRIHYHQGDWHWRWKHPHPEHUVRI5D\PRQG/LPLWHGRQWKHVWDQGDORQH
ILQDQFLDOVWDWHPHQWVDVRIDQGIRUWKH\HDUHQGHG0DUFK
L D 7KH&RPSDQ\ LV PDLQWDLQLQJ SURSHU UHFRUGV VKRZLQJIXOOSDUWLFXODUV LQFOXGLQJ TXDQWLWDWLYH GHWDLOV DQG VLWXDWLRQRIIL[HG
DVVHWV
E 7KH IL[HG DVVHWV DUH SK\VLFDOO\ YHULILHG E\ WKH 0DQDJHPHQW DFFRUGLQJ WR D SKDVHG SURJUDPPH GHVLJQHG WR FRYHU DOO
WKH LWHPV RYHU D SHULRG RI WKUHH \HDUV ZKLFK LQ RXU RSLQLRQ LV UHDVRQDEOH KDYLQJ UHJDUG WR WKH VL]H RI WKH &RPSDQ\
DQGWKHQDWXUHRILWVDVVHWV3XUVXDQWWRWKHSURJUDPPHDSRUWLRQRIWKHIL[HGDVVHWVKDVEHHQSK\VLFDOO\YHULILHGE\WKH
0DQDJHPHQWGXULQJWKH\HDUDQGQRPDWHULDOGLVFUHSDQFLHVKDYHEHHQQRWLFHGRQVXFKYHULILFDWLRQ
LL D 7KHLQYHQWRU\LQFOXGLQJVWRFNVZLWKFHUWDLQWKLUGSDUWLHVKDVEHHQSK\VLFDOO\YHULILHGE\WKH0DQDJHPHQWGXULQJWKH\HDU,Q
UHVSHFWRILQYHQWRU\O\LQJZLWKWKLUGSDUWLHVWKHVHKDYHVXEVWDQWLDOO\EHHQFRQILUPHGE\WKHP,QRXURSLQLRQWKHIUHTXHQF\
RIYHULILFDWLRQLVUHDVRQDEOH
E ,Q RXU RSLQLRQ WKH SURFHGXUHV RI SK\VLFDO YHULILFDWLRQ RI LQYHQWRU\ IROORZHG E\ WKH 0DQDJHPHQW DUH UHDVRQDEOH DQG
DGHTXDWHLQUHODWLRQWRWKHVL]HRIWKH&RPSDQ\DQGWKHQDWXUHRILWVEXVLQHVV
F 2Q WKH EDVLV RI RXU H[DPLQDWLRQ RI WKH LQYHQWRU\ UHFRUGV LQ RXU RSLQLRQ WKH &RPSDQ\ LV PDLQWDLQLQJ SURSHU UHFRUGV RI
LQYHQWRU\7KHGLVFUHSDQFLHVQRWLFHGRQSK\VLFDOYHULILFDWLRQRILQYHQWRU\DVFRPSDUHGWRERRNUHFRUGVZHUHQRWPDWHULDO
LLL 7KH&RPSDQ\KDVJUDQWHGXQVHFXUHGORDQVWRFRPSDQLHVFRYHUHGLQWKHUHJLVWHUPDLQWDLQHGXQGHU6HFWLRQRIWKH$FW
7KH&RPSDQ\KDVQRWJUDQWHGDQ\VHFXUHGXQVHFXUHGORDQVWRILUPVRURWKHUSDUWLHVFRYHUHGLQWKHUHJLVWHUPDLQWDLQHGXQGHU
6HFWLRQRIWKH$FW
D ,Q UHVSHFW RI WKH DIRUHVDLG ORDQV WKH SDUWLHV DUH UHSD\LQJ WKH SULQFLSDO DPRXQWV DV VWLSXODWHG DQG DUH DOVR UHJXODU LQ
SD\PHQWRILQWHUHVWDVDSSOLFDEOH
E ,QUHVSHFWRIWKHDIRUHVDLGORDQVWKHUHLVQRRYHUGXHDPRXQWPRUHWKDQ5XSHHV2QH/DNK
LY ,QRXURSLQLRQDQGDFFRUGLQJWRWKHLQIRUPDWLRQDQGH[SODQDWLRQVJLYHQWRXVWKHUHLVDQDGHTXDWHLQWHUQDOFRQWUROV\VWHP
FRPPHQVXUDWHZLWKWKHVL]HRIWKH&RPSDQ\DQGWKHQDWXUHRILWVEXVLQHVVIRUWKHSXUFKDVHRILQYHQWRU\DQGIL[HGDVVHWVDQG
IRU WKH VDOH RI JRRGV DQG VHUYLFHV )XUWKHU RQ WKH EDVLV RI RXU H[DPLQDWLRQ RI WKH ERRNV DQG UHFRUGV RI WKH &RPSDQ\ DQG
DFFRUGLQJ WR WKH LQIRUPDWLRQ DQG H[SODQDWLRQV JLYHQ WR XV ZH KDYH QHLWKHU FRPH DFURVV QRU KDYH EHHQ LQIRUPHG RI DQ\
FRQWLQXLQJIDLOXUHWRFRUUHFWPDMRUZHDNQHVVHVLQWKHDIRUHVDLGLQWHUQDOFRQWUROV\VWHP
Y 7KH&RPSDQ\KDVQRWDFFHSWHGDQ\GHSRVLWVIURPWKHSXEOLFZLWKLQWKHPHDQLQJRI6HFWLRQVDQGRIWKH$FWDQGWKHUXOHV
IUDPHGWKHUHXQGHUWRWKHH[WHQWQRWLILHG
6WDQGDORQH)LQDQFLDO6WDWHPHQWV
YL :HKDYHEURDGO\UHYLHZHGWKHERRNVRIDFFRXQWPDLQWDLQHGE\WKH&RPSDQ\LQUHVSHFWRISURGXFWVZKHUHSXUVXDQWWRWKH
UXOHVPDGHE\WKH&HQWUDO*RYHUQPHQWRI,QGLDWKHPDLQWHQDQFHRIFRVWUHFRUGVKDVEHHQVSHFLILHGXQGHUVXEVHFWLRQRI
6HFWLRQRIWKH$FWDQGDUHRIWKHRSLQLRQWKDWSULPDIDFLHWKHSUHVFULEHGDFFRXQWVDQGUHFRUGVKDYHEHHQPDGHDQG
PDLQWDLQHG:HKDYHQRWKRZHYHUPDGHDGHWDLOHGH[DPLQDWLRQRIWKHUHFRUGVZLWKDYLHZWRGHWHUPLQHZKHWKHUWKH\DUH
DFFXUDWHRUFRPSOHWH
YLL D $FFRUGLQJWRWKHLQIRUPDWLRQDQGH[SODQDWLRQVJLYHQWRXVDQGWKHUHFRUGVRIWKH&RPSDQ\H[DPLQHGE\XVLQRXURSLQLRQ
WKH&RPSDQ\LVUHJXODULQGHSRVLWLQJWKHXQGLVSXWHGVWDWXWRU\GXHVLQFOXGLQJSURYLGHQWIXQGHPSOR\HHV¶VWDWHLQVXUDQFH
LQFRPHWD[VDOHVWD[ZHDOWKWD[VHUYLFHWD[GXW\RIFXVWRPVGXW\RIH[FLVHYDOXHDGGHGWD[DQGRWKHUPDWHULDOVWDWXWRU\
GXHVDVDSSOLFDEOHZLWKWKHDSSURSULDWHDXWKRULWLHV
E $FFRUGLQJWRWKHLQIRUPDWLRQDQGH[SODQDWLRQVJLYHQWRXVDQGWKHUHFRUGVRIWKH&RPSDQ\H[DPLQHGE\XVWKHSDUWLFXODUV
RIGXHVRIVDOHVWD[LQFOXGLQJYDOXHDGGHGWD[GXW\RIFXVWRPVDQGGXW\RIH[FLVHDVDWVW0DUFKZKLFKKDYHQRW
EHHQGHSRVLWHGRQDFFRXQWRIDGLVSXWHDUHDVIROORZV
)RU'DODO 6KDK
&KDUWHUHG$FFRXQWDQWV
)LUP5HJLVWUDWLRQ1XPEHU:
$QLVK3$PLQ
3DUWQHU
0XPEDL$SULO 0HPEHUVKLS1XPEHU
6WDQGDORQH)LQDQFLDO6WDWHPHQWV
%$/$1&(6+((7$6$7670$5&+
`LQODFV
3DUWLFXODUV 1RWH $VDW $VDW
1R VW0DUFK VW0DUFK
, (48,7<$1'/,$%,/,7,(6
6KDUHKROGHUV¶IXQGV
D 6KDUHFDSLWDO
E 5HVHUYHVDQGVXUSOXV
1RQFXUUHQWOLDELOLWLHV
D /RQJWHUPERUURZLQJV
E 2WKHU/RQJWHUPOLDELOLWLHV
F 'HIHUUHGWD[OLDELOLWLHVQHW
&XUUHQWOLDELOLWLHV
D 6KRUWWHUPERUURZLQJV
E 7UDGHSD\DEOHV
F 2WKHUFXUUHQWOLDELOLWLHV
G 6KRUWWHUPSURYLVLRQV
727$/
,, $66(76
1RQFXUUHQWDVVHWV
D )L[HGDVVHWV
L7DQJLEOHDVVHWV
LL,QWDQJLEOHDVVHWV
LLL&DSLWDOZRUNLQSURJUHVV
E 1RQFXUUHQWLQYHVWPHQWV
F /RQJWHUPORDQVDQGDGYDQFHV
G 2WKHUQRQFXUUHQWDVVHWV
&XUUHQWDVVHWV
D &XUUHQWLQYHVWPHQWV
E ,QYHQWRULHV
F 7UDGHUHFHLYDEOHV
G &DVKDQG%DQNEDODQFHV
H 6KRUWWHUPORDQVDQGDGYDQFHV
I 2WKHUFXUUHQWDVVHWV
727$/
7KHQRWHVIRUPDQLQWHJUDOSDUWRIWKHVHILQDQFLDOVWDWHPHQWV
$VSHURXU5HSRUWRIHYHQGDWH
6WDQGDORQH)LQDQFLDO6WDWHPHQWV
67$7(0(172)352),7$1'/266)257+(<($5(1'('670$5&+
`LQODFV
3DUWLFXODUV 1RWH <HDUHQGHG <HDUHQGHG
1R VW0DUFK VW0DUFK
, 5HYHQXHIURPRSHUDWLRQVJURVV
/HVV([FLVH'XW\
,, 2WKHULQFRPH
,,, 7RWDO5HYHQXH,,,
,9 ([SHQVHV
&RVWRIPDWHULDOVFRQVXPHG
3XUFKDVHVRI6WRFNLQ7UDGH
0DQXIDFWXULQJDQG2SHUDWLQJ&RVWV
&KDQJHVLQLQYHQWRULHVRIILQLVKHGJRRGVZRUNLQSURJUHVVDQGVWRFN
LQWUDGH
(PSOR\HHEHQHILWVH[SHQVH
)LQDQFHFRVWV
'HSUHFLDWLRQDQGDPRUWL]DWLRQH[SHQVH
2WKHUH[SHQVHV
7RWDOH[SHQVHV
9 3URILWEHIRUHH[FHSWLRQDOLWHPVDQGWD[,,,,9
9, ([FHSWLRQDOLWHPV1HW
9,, 3URILWEHIRUHWD[99,
9,,,7D[H[SHQVH
&XUUHQWWD[
/HVV0$7&UHGLW
'HIHUUHGWD[
7D[LQUHVSHFWRIHDUOLHU\HDUV
,; 3URILWIRUWKH\HDU9,,9,,,
; (DUQLQJVSHUHTXLW\VKDUHRI` HDFK
%DVLF>`@
'LOXWHG>`@
:HLJKWHGDYHUDJHQXPEHURIVKDUHVRXWVWDQGLQJ
7KHQRWHVIRUPDQLQWHJUDOSDUWRIWKHVHILQDQFLDOVWDWHPHQWV
$VSHURXU5HSRUWRIHYHQGDWH
6WDQGDORQH)LQDQFLDO6WDWHPHQWV
&$6+)/2:67$7(0(17)257+(<($5(1'('670$5&+
`LQODFV
<HDU(QGHG VW0DUFK <HDU(QGHG VW0DUFK
$ &DVK)ORZDULVLQJIURP2SHUDWLQJ$FWLYLWLHV
3URILWEHIRUH([FHSWLRQDO,WHPVDQGWD[DVSHU6WDWHPHQWRI3URILWDQG/RVV
$GG'HGXFW
D %DG'HEWV$GYDQFHV&ODLPVDQGGHSRVLWVZULWWHQRII1HW
E 3URYLVLRQQRORQJHUUHTXLUHG
F 3URYLVLRQIRU'LPLQXWLRQLQYDOXHRILQYHVWPHQWV
G 3URYLVLRQIRU'RXEWIXOGHEWV
H 'HSUHFLDWLRQDQG$PRUWLVDWLRQH[SHQVH
I )LQDQFHFRVWV
J 6XUSOXVORVVRQGLVSRVDORI$VVHWV1HW
K ,QWHUHVW,QFRPH
L 'LYLGHQG,QFRPH
M 6XUSOXVRQVDOHRI,QYHVWPHQWV1HW
2SHUDWLQJ&DVK3URILWEHIRUH:RUNLQJ&DSLWDO&KDQJHV
$GG'HGXFW
D ,QFUHDVH'HFUHDVHLQ7UDGHDQGRWKHU3D\DEOH
E ,QFUHDVHLQ7UDGHDQG2WKHU5HFHLYDEOHV
F ,QFUHDVHLQ,QYHQWRULHV
&DVK)ORZIURP2SHUDWLRQV
'HGXFW
'LUHFW7D[HV1HW
1HW&DVK,QIORZLQWKHFRXUVHRI2SHUDWLQJ$FWLYLWLHV
'HGXFW ([FHSWLRQDO,WHPV>1HW@
1HW&DVK,QIORZLQWKHFRXUVHRI2SHUDWLQJ$FWLYLWLHVDIWHU([FHSWLRQDO,WHPV
% &DVK)ORZDULVLQJIURP,QYHVWLQJ$FWLYLWLHV
,QIORZ
D 6DOHRI7DQJLEOH$VVHWV
E ,QWHUHVW5HFHLYHG
F 'LYLGHQG5HFHLYHG
G 'LYLGHQG5HFHLYHGIURP6XEVLGLDULHV
H 6DOHRI/RQJ7HUP,QYHVWPHQWV
I 6DOHRI&XUUHQW,QYHVWPHQWV1HW
J 3URFHHGVIURPGLYHVWPHQWRIVXLWXQLW5HIHU1RWH
2XWIORZ
D 3XUFKDVHRI7DQJLEOH$VVHWV
E ,QYHVWPHQWLQ6XEVLGLDULHV
F 3XUFKDVHRI1RQ&XUUHQW,QYHVWPHQWV
1HW&DVK,QIORZ2XWIORZLQWKHFRXUVHRI,QYHVWLQJ$FWLYLWLHV
& &DVK)ORZDULVLQJIURP)LQDQFLQJ$FWLYLWLHV
,QIORZ
D 3URFHHGVIURP/RQJ7HUP/RDQV'HEHQWXUHV
E 3URFHHGVIURPRWKHU%RUURZLQJV1HW
2XWIORZ
D 5HSD\PHQWRI/RQJ7HUP/RDQV
E 5HSD\PHQWRI6KRUW7HUP%RUURZLQJV1HW
F )LQDQFH&KDUJHV1HW
G 'LYLGHQG3DLG
H 'LYLGHQG'LVWULEXWLRQ7D[
1HW&DVK2XWIORZLQWKHFRXUVHRI)LQDQFLQJ$FWLYLWLHV
1HW,QFUHDVHGHFUHDVHLQ&DVK&DVK(TXLYDOHQWV$%&
$VSHURXU5HSRUWRIHYHQGDWH
6WDQGDORQH)LQDQFLDO6WDWHPHQWV
127(6727+(),1$1&,$/67$7(0(176
1RWH6KDUH&DSLWDO `LQODFV
$VDW $VDW
VW0DUFK VW0DUFK
$XWKRULVHG
3UHYLRXV<HDU(TXLW\6KDUHVRI` HDFK
,VVXHG
3UHYLRXV<HDU(TXLW\6KDUHVRI` HDFK
6XEVFULEHG 3DLGXS
3UHYLRXV<HDU(TXLW\6KDUHVRI` HDFK
7RWDO
1RWHD5HFRQFLOLDWLRQRIQXPEHURIVKDUHV
3DUWLFXODUV $VDW0DUFK $VDW0DUFK
1RRI6KDUHVKHOG `LQODFV 1RRI6KDUHVKHOG `LQODFV
(TXLW\VKDUHV
6KDUHVDWWKHEHJLQQLQJRIWKH\HDU
6KDUHVDWWKHHQGRIWKH\HDU
1RWHE5LJKWV3UHIHUHQFHVDQGUHVWULFWLRQVDWWDFKHGWR(TXLW\6KDUHV
7KH&RPSDQ\KDVRQO\RQHFODVVRIHTXLW\VKDUHVKDYLQJDSDUYDOXHRI` SHUVKDUH(DFK6KDUHKROGHULVHOLJLEOHIRURQHYRWHSHU
VKDUH7KHGLYLGHQGSURSRVHGE\WKH%RDUGRI'LUHFWRUVLVVXEMHFWWRWKHDSSURYDORIVKDUHKROGHUVH[FHSWLQFDVHRILQWHULPGLYLGHQG
,QWKHHYHQWRIOLTXLGDWLRQWKHHTXLW\VKDUHKROGHUVDUHHOLJLEOHWRUHFHLYHWKHUHPDLQLQJDVVHWVRIWKH&RPSDQ\DIWHUGLVWULEXWLRQRI
DOOSUHIHUHQWLDODPRXQWVLQSURSRUWLRQRIWKHLUVKDUHKROGLQJ
1RWHF'HWDLOVRIVKDUHVKHOGE\VKDUHKROGHUVKROGLQJPRUHWKDQRIWKHDJJUHJDWHVKDUHVLQWKH&RPSDQ\
1DPHRIWKH6KDUHKROGHU $VDWVW0DUFK $VDWVW0DUFK
1RRI6KDUHVKHOG RI+ROGLQJ 1RRI6KDUHVKHOG RI+ROGLQJ
-.,QYHVWRUV%RPED\/LPLWHG
/LIH,QVXUDQFH&RUSRUDWLRQRI,QGLD
-.+HOHQH&XUWLV/LPLWHG
1RWH5HVHUYHVDQG6XUSOXV
$VDW $VDW
VW0DUFK VW0DUFK
D &DSLWDO5HVHUYHV
%DODQFHDVSHUODVWDFFRXQW
E &DSLWDO5HGHPSWLRQ5HVHUYH
%DODQFHDVSHUODVWDFFRXQW
F 'HEHQWXUH5HGHPSWLRQ5HVHUYH
%DODQFHDVDWWKHEHJLQQLQJRIWKH\HDU
$GG$PRXQWWUDQVIHUUHGIURP6XUSOXVLQ6WDWHPHQWRI3URILWDQG/RVVGXULQJWKH
\HDU
/HVV7UDQVIHUUHGWR*HQHUDO5HVHUYH
%DODQFHDVDWHQGRIWKH\HDU
G 6HFXULWLHV3UHPLXP$FFRXQW
%DODQFHDVDWWKHEHJLQQLQJRIWKH\HDU
/HVV$PRXQWVXWLOL]HGIRUH[SHQVHVRQLVVXHRI'HEHQWXUHVQHWRIWD[`
ODFV0DUFK1LO
/HVV3UHPLXPRQUHGHPSWLRQRI'HEHQWXUHVQHWRIWD[` ODFV
0DUFK1LO
%DODQFHDVDWHQGRIWKH\HDU
6WDQGDORQH)LQDQFLDO6WDWHPHQWV
127(6727+(),1$1&,$/67$7(0(176
`LQODFV
1RWH5HVHUYHVDQG6XUSOXVFRQWG
$VDW $VDW
VW0DUFK VW0DUFK
H *HQHUDO5HVHUYH
%DODQFHDVDWWKHEHJLQQLQJRIWKH\HDU
$GG7UDQVIHUUHGIURP6XUSOXVLQ6WDWHPHQWRI3URILWDQG/RVV
$GG7UDQVIHUUHGIURP'HEHQWXUH5HGHPSWLRQ5HVHUYH
%DODQFHDVDWHQGRIWKH\HDU
I 6XUSOXVLQ6WDWHPHQWRI3URILWDQG/RVV
%DODQFHDVDWWKHEHJLQQLQJRIWKH\HDU
$GG/HVV $GGLWLRQDO 'HSUHFLDWLRQ QHW RI WD[ ` ODFV SXUVXDQW WR
HQDFWPHQWRI6FKHGXOH,,RIWKH&RPSDQLHV$FW>5HIHU1RWHG@
1HW3URILWIRUWKH\HDU
7UDQVIHUWR'HEHQWXUH5HGHPSWLRQ5HVHUYH
7UDQVIHUWR*HQHUDO5HVHUYH
3URSRVHG'LYLGHQG
'LYLGHQGGLVWULEXWLRQWD[RQSURSRVHGGLYLGHQG
([FHVVGLYLGHQGGLVWULEXWLRQWD[LQUHVSHFWRI3UHYLRXV<HDUZULWWHQEDFN
%DODQFHDVDWHQGRIWKH\HDU
7RWDO
'LYLGHQGSURSRVHGWREHGLVWULEXWHGWRHTXLW\VKDUHKROGHUVLV` 3UHYLRXV<HDU` SHUHTXLW\VKDUH
'LYLGHQGGLVWULEXWLRQWD[` ODFV0DUFK1LOVHWRIIDJDLQVWGLYLGHQGGLVWULEXWLRQWD[RQGLYLGHQGIURPDZKROO\RZQHGVXEVLGLDU\
1RWH/RQJ7HUP%RUURZLQJV
$VDW $VDW
VW0DUFK VW0DUFK
6HFXUHG
7HUPORDQV
)URPEDQNV
8QVHFXUHG
D 7HUPORDQV
)URPEDQNV
1DWXUHRI6HFXULW\DQGWHUPVRIUHSD\PHQWIRU/RQJ7HUPVHFXUHGERUURZLQJV
1DWXUHRI6HFXULW\ 7HUPVRI5HSD\PHQW
L 7HUP ORDQ IURP EDQN EDODQFH RXWVWDQGLQJ DPRXQWLQJ WR 5HSD\DEOH LQ TXDUWHUO\ LQVWDOOPHQWV VWDUWLQJ IURP 6HSWHPEHU
` ODFV0DUFK` ODFVLVVHFXUHGE\ /DVW LQVWDOOPHQW GXH LQ -XQH 5DWH RI LQWHUHVW
SDULSDVVXFKDUJHRQWKHHQWLUHLPPRYDEOHDVVHWVDW9DSL SDDVDW\HDUHQG3UHYLRXV<HDUSD
3ODQWDFTXLUHGRXWRIWKLVORDQDQGH[FOXVLYHILUVWFKDUJHRQ
WKHHQWLUHPRYDEOHDVVHWVORFDWHGDW9DSL3ODQWDFTXLUHG
RXWRIWKHORDQV
6WDQGDORQH)LQDQFLDO6WDWHPHQWV
127(6727+(),1$1&,$/67$7(0(176
LL 7HUP ORDQ IURP EDQN EDODQFH RXWVWDQGLQJ DPRXQWLQJ WR 5HSD\DEOH LQ TXDUWHUO\ LQVWDOOPHQWV VWDUWLQJ IURP -XQH
` ODFV0DUFK` ODFVLVVHFXUHGE\ /DVWLQVWDOOPHQWGXHLQ0DUFK5DWHRILQWHUHVWSD
ZD\RIILUVWSDULSDVVXFKDUJHRQIL[HGDVVHWVRI&KLQGZDUD DVDW\HDUHQG3UHYLRXV<HDUSD
DQG-DOJDRQ3ODQW
LLL 7HUP ORDQ IURP EDQN EDODQFH RXWVWDQGLQJ DPRXQWLQJ WR 5HSD\DEOH LQ TXDUWHUO\ LQVWDOOPHQWV VWDUWLQJ IURP 6HSWHPEHU
` ODFV 0DUFK ` ODFV LV VHFXUHG E\ /DVW LQVWDOOPHQW GXH LQ -XQH 5DWH RI LQWHUHVW
SDULSDVVXFKDUJHRQWKHHQWLUHLPPRYDEOHDVVHWVDW9DSL SDDVDW\HDUHQG3UHYLRXV<HDUSD
3ODQW DFTXLUHG RXW RI WKLV ORDQ DQG H[FOXVLYH ILUVW FKDUJH
RQ WKH HQWLUH PRYDEOH DVVHWV DFTXLUHG RXW RI WKLV ORDQV
ORFDWHGDWWKH9DSL3ODQW
LY 7HUP ORDQ IURP EDQN EDODQFH RXWVWDQGLQJ DPRXQWLQJ WR 5HSD\DEOH LQ HTXDO TXDUWHUO\ LQVWDOOPHQWV FRPPHQFLQJ
` ODFV0DUFK` ODFVLVVHFXUHGE\ IURP-XQH/DVWLQVWDOOPHQWGXHLQ'HFHPEHU5DWHRI
SDUL SDVVX FKDUJH RQ WKH LPPRYDEOH DVVHWV DW 9DSL 3ODQW LQWHUHVWSDDVDW\HDUHQG3UHYLRXV<HDUSD
DQG H[FOXVLYH FKDUJH RQ PRYDEOH DVVHWV DFTXLUHG XQGHU
WKHORDQDW9DSL3ODQW
Y 7HUP ORDQ IURP EDQN EDODQFH RXWVWDQGLQJ DPRXQWLQJ WR 5HSD\DEOH LQ HTXDO KDOI \HDUO\ LQVWDOOPHQWV VWDUWLQJ IURP
` ODFV0DUFK` ODFVLVVHFXUHGE\ $XJXVW /DVW LQVWDOOPHQW GXH LQ )HEUXDU\ 5DWH RI
/LHQRQ)L[HG'HSRVLWVSODFHGZLWK6WDWH%DQNRI,QGLDIRU LQWHUHVWSDDVDW\HDUHQG3UHYLRXV<HDUSD
` ODFV
YL 7HUP ORDQ IURP EDQN EDODQFH RXWVWDQGLQJ DPRXQWLQJ 5HSD\DEOHLQHTXDOTXDUWHUO\LQVWDOOPHQWVFRPPHQFLQJ-XQH
WR ` ODFV 0DUFK ` ODFV SDUWLDO /DVWLQVWDOOPHQWGXHLQ0DUFK5DWHRILQWHUHVW
GLVEXUVHPHQWLVVHFXUHGE\ILUVWFKDUJHRQPRYDEOHDVVHWV SDDVDW\HDUHQG3UHYLRXV<HDUSD
LQFOXGLQJ SODQW DQG PDFKLQHU\ IXUQLWXUH DQG IL[WXUH DQG
RWKHUDVVHWVRI&DSWLYH3RZHU3ODQWDW9DSLDQGSDULSDVVX
FKDUJHRQWKHLPPRYDEOHDVVHWVDW9DSL3ODQW
YLL 7HUP ORDQ IURP EDQN EDODQFH RXWVWDQGLQJ DPRXQWLQJ WR 5HSD\DEOH LQ TXDUWHUO\ LQVWDOOPHQWV VWDUWLQJ IURP 1RYHPEHU
` ODFV0DUFK` ODFVLVVHFXUHGE\ /DVW LQVWDOOPHQW GXH LQ 6HSWHPEHU 5DWH RI LQWHUHVW
ZD\RIILUVWSDULSDVVXFKDUJHRQIL[HGDVVHWVRI&KLQGZDUD SDDVDW\HDUHQG3UHYLRXV<HDUSD
DQG -DOJDRQ IDFWRULHV DQG VHFRQG SDUL SDVVX FKDUJH RQ
LPPRYHDEOHDVVHWVDW9DSL3ODQWDFTXLUHGRXWRIWKLVORDQ
YLLL 7HUP ORDQ IURP EDQN EDODQFH RXWVWDQGLQJ DPRXQWLQJ WR 5HSD\DEOHLQHTXDOTXDUWHUO\LQVWDOOPHQWVWDUWLQJIURP-DQXDU\
` ODFV 0DUFK ` ODFV LV VHFXUHG E\ DQGODVWLQVWDOOPHQWGXHLQ-XO\5DWHRILQWHUHVW
ILUVW SDUL SDVVX FKDUJH RQ IL[HG DVVHWV RI &KLQGZDUD DQG SDDVDW\HDUHQG3UHYLRXV<HDUSD
-DOJDRQ IDFWRULHV PRYHDEOH IL[HG DVVHWV RI FRPSDQ\
RZQHGUHWDLOVWRUHVDQGVHFRQGSDULSDVVXFKDUJHRQWKH
ODQGDW9DSL3ODQW
7HUPVRIUHSD\PHQWIRU/RQJ7HUPXQVHFXUHGERUURZLQJV
%RUURZLQJV 7HUPVRI5HSD\PHQW
7HUPORDQVIURPEDQNV
` ODFV3UHYLRXV<HDU` ODFV 5HSD\DEOHLQ$XJXVW5DWHRILQWHUHVWSDDVDW\HDU
HQG
` ODFV3UHYLRXV<HDU` ODFV 5HSD\DEOH LQ DQQXDO LQVWDOOPHQWV RI ` ODFV HDFK DQG
WKHUHDIWHU IRXU TXDUWHUO\ LQVWDOOPHQWV RI ` ODFV HDFK )LUVW
LQVWDOOPHQWZDVGXHLQ0DUFKDQG/DVWLQVWDOOPHQWLVGXHLQ
0DUFK5DWHRILQWHUHVWSDDVDW\HDUHQG
3ULYDWHO\ 3ODFHG 1RQ&RQYHUWLEOH 'HEHQWXUHV IDFH YDOXH
` ODFVHDFK
` ODFV3UHYLRXV<HDU` ODFV 5HSD\DEOH LQ 2FWREHU 5DWH RI LQWHUHVW SD DV DW
\HDUHQG
` 1LO3UHYLRXV<HDU` ODFV 5HSDLGLQ'HFHPEHU5DWHRILQWHUHVWSDDVDW\HDU
HQG
` ODFV3UHYLRXV<HDU` ODFV 5HSD\DEOHLQ-XQH5DWHRILQWHUHVWSDDVDW\HDU
HQG
` ODFV3UHYLRXV<HDU` ODFV 5HSD\DEOHLQ1RYHPEHU5DWHRILQWHUHVWSDDVDW
\HDUHQG
6WDQGDORQH)LQDQFLDO6WDWHPHQWV
127(6727+(),1$1&,$/67$7(0(176
1RWH2WKHU/RQJ7HUP/LDELOLWLHV
`LQODFV
$VDW $VDW
VW0DUFK VW0DUFK
D 'HSRVLWVIURP'HDOHUV$JHQWVHWF
E 3UHPLXP3D\DEOHRQUHGHPSWLRQRI'HEHQWXUHV
F 2WKHU3D\DEOHV
7RWDO
1RWH6KRUW7HUP%RUURZLQJV
6HFXUHG
D :RUNLQJFDSLWDOORDQVUHSD\DEOHRQGHPDQGIURPEDQNV
,QFOXGLQJIRUHLJQFXUUHQF\ORDQ` ODFV3UHYLRXV<HDU1LO
E %X\HUVFUHGLWDUUDQJHPHQWV
:RUNLQJFDSLWDOORDQIURPEDQNVDQGEX\HUVFUHGLWDUUDQJHPHQWVDUHVHFXUHG
E\K\SRWKHFDWLRQRILQYHQWRULHVERRNVGHEWVDQGRWKHUFXUUHQWDVVHWV
8QVHFXUHG
D %X\HUVFUHGLWDUUDQJHPHQWV
E %\LVVXHRI&RPPHUFLDO3DSHUV>0D[LPXPEDODQFHRXWVWDQGLQJGXULQJWKH\HDU
` ODFV3UHYLRXV<HDU` ODFV@
7RWDO
1RWH2WKHU&XUUHQW/LDELOLWLHV
D &XUUHQWPDWXULWLHVRIORQJWHUPGHEW5HIHU1RWH
E,QWHUHVWDFFUXHGEXWQRWGXHRQERUURZLQJV
F 8QFODLPHGGLYLGHQGV
G 8QFODLPHGPDWXUHGGHEHQWXUHVDQGLQWHUHVWDFFUXHGWKHUHRQ
H 6WDWXWRU\'XHV
I $GYDQFHIURPFXVWRPHUV
J 2YHUGUDZQ%DQN%DODQFHV
K 6DODU\DQG:DJHVSD\DEOH
L 2WKHUSD\DEOHV
7RWDO
7KHUHDUHQRDPRXQWVGXHIRUSD\PHQWWRWKH,QYHVWRUV(GXFDWLRQDQG3URWHFWLRQ)XQGXQGHU6HF&RIWKH&RPSDQLHV$FW
DVDWWKH\HDUHQG6HFWLRQRI&RPSDQLHV$FWZKLFKFRUUHVSRQGVWR6HFWLRQ&RI&RPSDQLHV$FWKDVQRW
\HWEHHQHQIRUFHG
6WDQGDORQH)LQDQFLDO6WDWHPHQWV
127(6727+(),1$1&,$/67$7(0(176
1RWH6KRUW7HUP3URYLVLRQV
`LQODFV
$VDW $VDW
VW0DUFK VW0DUFK
D 3URYLVLRQIRUHPSOR\HHEHQHILWV5HIHU1RWH
E 2WKHU3URYLVLRQV
3URYLVLRQIRUOLWLJDWLRQGLVSXWH
3URSRVHG'LYLGHQG
'LYLGHQGGLVWULEXWHGWD[RQSURSRVHG'LYLGHQG>5HIHU1RWH@
7RWDO
3URYLVLRQIRUOLWLJDWLRQGLVSXWHUHSUHVHQWVFODLPVDJDLQVWWKH&RPSDQ\WKDWDUHH[SHFWHGWRPDWHULDOLVHLQUHVSHFWRIPDWWHUVLQ
OLWLJDWLRQ
1RWH)L[HG$VVHWV
`LQODFV
*5266%/2&. '(35(&,$7,21$0257,6$7,21,03$,50(17 1(7%/2&.
%DODQFHDV $FTXLVLWLRQ $GGLWLRQV 'LVSRVDOV %DODQFH 8SWRVW 5HWDLQHG ,PSDLUPHQW )RUWKH 'LVSRVDOV $FTXLVLWLRQ 8SWRVW %DODQFH %DODQFH
DWVW$SULO 'LYHVWPHQW $GMXVWPHQWV $GMXVWPHQWV DVDWVW $SULO (DUQLQJV /RVV \HDU 'LYHVWPHQW 0DUFK DVDWVW DVDWVW
>5HIHU1RWH 0DUFK >UHIHUµG¶ >5HIHU1RWH 0DUFK 0DUFK
@ EHORZ@ @
L 7DQJLEOH$VVHWV
)UHHKROG/DQG
/HDVHKROG/DQG
%XLOGLQJV
3ODQWDQG(TXLSPHQW
)XUQLWXUHDQG)L[WXUHV
9HKLFOHV
2IILFHHTXLSPHQW
/LYHVWRFNDWERRNYDOXH
%RDWVDQGZDWHU(TXLSPHQWV
$LUFUDIW
$VVHWVJLYHQRQRSHUDWLQJOHDVH
%XLOGLQJV
7RWDO
3UHYLRXV<HDU¶V7RWDO
LL ,QWDQJLEOH$VVHWV
&RPSXWHUVRIWZDUH
7RWDO
3UHYLRXV<HDU¶V7RWDO
LLL &DSLWDOZRUNLQSURJUHVV
D ,QWHUPVRIWKHDFTXLVLWLRQSURFHHGLQJVLQLWLDWHGE\7KDQH0XQLFLSDO&RUSRUDWLRQDERXWVTPHWHUVRIWKH&RPSDQ\¶VIUHHKROGODQGDW7KDQHLVDFTXLUHGIRUWKHSXUSRVHRI
ZLGHQLQJRIPXQLFLSDOURDG1HFHVVDU\DFFRXQWLQJHIIHFWIRUWKHVDPHZLOOEHJLYHQLQWKH\HDULQZKLFKWKHPDWWHULVILQDOO\VHWWOHG
6WDQGDORQH)LQDQFLDO6WDWHPHQWV
127(6727+(),1$1&,$/67$7(0(176
1RWH1RQ&XUUHQW,QYHVWPHQWV
$VDWVW0DUFK $VDWVW0DUFK
1RV `LQODFV 1RV `LQODFV
$ ,QYHVWPHQWVLQ6XEVLGLDULHV
8QTXRWHG7UDGH
5D\PRQG$SSDUHO/LPLWHG
(TXLW\6KDUHVRI` HDFK
&XPXODWLYH 5HGHHPDEOH 3UHIHUHQFH 6KDUHV RI `
HDFK
)XOO\&RQYHUWLEOH8QVHFXUHG'HEHQWXUHVRI` HDFK
5D\PRQG(XURSH/LPLWHG(TXLW\6KDUHVRI£HDFK
-D\ND\RUJ$*(TXLW\6KDUHVRI6ZLVV)UDQFVHDFK
3DVKPLQD+ROGLQJV/LPLWHG(TXLW\6KDUHVRI` HDFK
(YHUEOXH$SSDUHO/LPLWHG
(TXLW\6KDUHVRI` HDFK
&XPXODWLYH2SWLRQDOO\&RQYHUWLEOH3UHIHUHQFH6KDUHV
RI` HDFK
6LOYHU6SDUN$SSDUHO/LPLWHG
(TXLW\6KDUHVRI` HDFK
1RQ&XPXODWLYH3UHIHUHQFH6KDUHVRI` HDFK
&HOHEUDWLRQV$SSDUHO/LPLWHG(TXLW\6KDUHVRI` HDFK
6FLVVRUV(QJLQHHULQJ3URGXFWV/LPLWHG
(TXLW\6KDUHVRI` HDFK
&XPXODWLYH2SWLRQDOO\&RQYHUWLEOH3UHIHUHQFH6KDUHV
RI` HDFK
5D\PRQG:RROOHQ2XWHUZHDU/LPLWHG
(TXLW\6KDUHVRI` HDFK
-.)LOHV,QGLD/LPLWHG
(TXLW\6KDUHVRI` HDFK
&XPXODWLYH 5HGHHPDEOH 3UHIHUHQFH 6KDUHV RI `
HDFK
5D\PRQG /X[XU\ &RWWRQV /LPLWHG IRUPHUO\ 5D\PRQG
=DPEDLWL/LPLWHG>(TXLW\6KDUHVRI` HDFK5HIHUµL¶
EHORZ
% ,QYHVWPHQWVLQ-RLQW9HQWXUHV-RLQWO\&RQWUROOHG(QWLWLHV
8QTXRWHG7UDGH
5D\PRQG8&2'HQLP3ULYDWH/LPLWHG>5HIHUµLL¶EHORZ@
(TXLW\6KDUHVRI` HDFK
3UHIHUHQFH6KDUHVRI` HDFK
/HVV 3URYLVLRQIRUGLPLQXWLRQLQYDOXHRI,QYHVWPHQWV
7KH&RPSDQ\KDVDJUHHGZLWKWKHOHQGHUV%DQNVRIVRPHRI
WKHVH&RPSDQLHVIRUQRWGLVSRVLQJRIIWKHVHLQYHVWPHQWVZLWKRXW
WKHLUSULRUFRQVHQW
6WDQGDORQH)LQDQFLDO6WDWHPHQWV
127(6727+(),1$1&,$/67$7(0(176
1RWH1RQ&XUUHQW,QYHVWPHQWV&RQWG
$VDWVW0DUFK $VDWVW0DUFK
1RV `LQODFV 1RV `LQODFV
& ,QYHVWPHQWVLQ$VVRFLDWHV
8QTXRWHG7UDGH
37-D\ND\)LOHV,QGRQHVLD(TXLW\6KDUHVRI,QGRQ5S
86HDFK
5DGKD.UVKQD)LOPV/LPLWHG(TXLW\6KDUHVRI` HDFK
/HVV 3URYLVLRQIRUGLPLQXWLRQLQYDOXHRI,QYHVWPHQWV
-.,QYHVWR7UDGH,QGLD/LPLWHG(TXLW\6KDUHVRI` HDFK
' 1RQ7UDGH,QYHVWPHQWV
(TXLW\8QTXRWHG
*XMDUDW 6KHHS :RRO 'HYHORSPHQW &RUSRUDWLRQ /LPLWHG
(TXLW\6KDUHVRI` HDFK
/HVV 3URYLVLRQIRUGLPLQXWLRQLQYDOXHRI,QYHVWPHQWV
%HQJDO $VVDP&RPSDQ\/LPLWHG(TXLW\6KDUHVRI`
HDFK
/HVV 3URYLVLRQIRUGLPLQXWLRQLQYDOXHRI,QYHVWPHQWV
,PSH[,QGLD/LPLWHG(TXLW\6KDUHVRI` HDFK
6HYHQ 6HDV 7UDQVSRUWDWLRQ /LPLWHG (TXLW\ 6KDUHV RI `
HDFK
/HVV 3URYLVLRQIRUGLPLQXWLRQLQYDOXHRI,QYHVWPHQWV
-. &RWWRQ 6SJ :YJ 0LOOV &RPSDQ\ /LPLWHG (TXLW\
6KDUHVRI` HDFK
/HVV 3URYLVLRQIRUGLPLQXWLRQLQYDOXHRI,QYHVWPHQWV
( ,QYHVWPHQWVLQ9HQWXUH&DSLWDO)XQGV8QTXRWHG1RQ7UDGH
,QGLD*URZWK)XQG8QLWVRI` HDFK3DLGXSYDOXHSHU
8QLWRI` HDFK3UHYLRXV<HDU` HDFK
/HVV 3URYLVLRQIRUGLPLQXWLRQLQYDOXHRI,QYHVWPHQWV
+')&,QGLD5HDO(VWDWH)XQG8QLWVRI` HDFK
/HVV 3URYLVLRQIRUGLPLQXWLRQLQYDOXHRI,QYHVWPHQWV
) 0XWXDO )XQGV 4XRWHG 8QLWV RI ` HDFK XQOHVV RWKHUZLVH
VSHFLILHG
5HOLJDUH,QYHVFR)036U3ODQ$0RQWKV'LUHFW3ODQ
*URZWK
1$93UHYLRXV<HDU` ODFV
* ,QYHVWPHQWVLQ*RYHUQPHQW6HFXULWLHV8QTXRWHG7UDGH
1DWLRQDO 6DYLQJ &HUWLILFDWH GHSRVLWHG ZLWK *RYHUQPHQW
'HSDUWPHQWDVVHFXULW\
*UDQG7RWDO
%RRN9DOXH 0DUNHW9DOXH
VW VW VW VW
0DUFK 0DUFK 0DUFK 0DUFK
`LQODFV `LQODFV `LQODFV `LQODFV
$JJUHJDWHRI4XRWHG,QYHVWPHQWV
$JJUHJDWHRI8QTXRWHG,QYHVWPHQWV
$JJUHJDWHSURYLVLRQIRUGLPLQXWLRQLQYDOXHRIORQJWHUP
,QYHVWPHQWV
1HWDVVHWYDOXHLQFDVHRIPXWXDOIXQGV
6WDQGDORQH)LQDQFLDO6WDWHPHQWV
127(6727+(),1$1&,$/67$7(0(176
1RWH1RQ&XUUHQW,QYHVWPHQWV&RQWG
L 'XULQJWKH\HDUWKH&RPSDQ\KDVLQYHVWHGDQDPRXQWRI` ODFVLQFOXGLQJXQVXEVFULEHGSRUWLRQE\VXEVFULSWLRQWR
WKHULJKWVLVVXHRIHTXLW\VKDUHVRI5D\PRQG/X[XU\&RWWRQV/LPLWHG5/&/)RUPHUO\5D\PRQG=DPEDLWL/LPLWHG5=/D
6XEVLGLDU\RIWKH&RPSDQ\HQKDQFLQJWKH&RPSDQ\¶VVKDUHKROGLQJIURPWR&RWRQLILFLR+RQHJJHU63$&+
WKHHUVWZKLOH-RLQW9HQWXUHSDUWQHULQ5/&/KDVEHHQDGMXGLFDWHGLQVROYHQWE\DFRXUWLQ%HUJDPR,WDO\7KH&RPSDQ\
KDVSUHIHUUHGLWVFODLPEHIRUHWKHRIILFLDOOLTXLGDWRUIRUSXUFKDVHRIVKDUHVKHOGLQ5/&/E\&+LQWHUPVRIWKH-9DJUHHPHQW
LL 7KH %RDUG RI 'LUHFWRUV RI WKH &RPSDQ\ LQ 3UHYLRXV <HDU GHFLGHG WR ZULWH RII WKH VXSSRUW SURYLGHG WR 5D\PRQG 8&2
'HQLP3ULYDWH/LPLWHG58'3/D-RLQW9HQWXUH-9&RPSDQ\DJJUHJDWLQJ` ODFV'HEHQWXUH` ODFVDQG
/RDQ` ODFV$QDPRXQWDJJUHJDWLQJ` ODFVZDVSURYLGHGDJDLQVWWKHVH'HEHQWXUHVDQG/RDQVLQHDUOLHU
\HDUVZKLFKZDVDOVRZULWWHQEDFNLQWKH3UHYLRXV<HDU7KHVHDPRXQWVZHUHGLVFORVHGDV³([FHSWLRQDOLWHPV´>5HIHUQRWH
@7KH%RDUGRI'LUHFWRUVRIWKH&RPSDQ\KDGDOVRZDLYHGLQWHUHVWIRUWKH3UHYLRXV<HDUDJJUHJDWLQJ` ODFVRQ
WKHVH'HEHQWXUHVDQG/RDQV
7KH&RPSDQ\KDVDQLQYHVWPHQWRI` ODFVLQWKH(TXLW\DQG3UHIHUHQFH6KDUHVRIWKH-9,QYLHZRIWKHLPSURYHG
SHUIRUPDQFHRIWKH-9RYHUWKHODVWIHZ\HDUVWKH&RPSDQ\KDGUHDVVHVVHGWKHFDUU\LQJDPRXQWRIWKHVHLQYHVWPHQWV
LQWKH3UHYLRXV<HDUDQGEDVHGRQDYDOXDWLRQFDUULHGRXWE\DQH[SHUWKDGZULWWHQEDFNDVXPRI` ODFVRXWRIWKH
SURYLVLRQPDGHLQHDUOLHU\HDUVDVDQµ([FHSWLRQDOLWHP¶>5HIHU1RWH@
)RUEDVLVRIYDOXDWLRQUHIHUµ9µLQ$QQH[XUH,
1RWH'HIHUUHG7D[
`LQODFV
$VDW $VDW $VDW
VW0DUFK VW0DUFK VW0DUFK
'HIHUUHG7D[/LDELOLW\RQDFFRXQWRI
'HSUHFLDWLRQ
'HIHUUHG7D[$VVHWRQDFFRXQWRI
L 9563D\PHQWV
LL &RPSHQVDWLRQSD\DEOHWRHPSOR\HHV
LLL 2WKHU(PSOR\HHEHQHILWV
LY 7D[HV'XWLHV&HVVHWF
Y 3URYLVLRQIRUGRXEWIXOGHEWVHWF
YL 8QDEVRUEHG'HSUHFLDWLRQ
YLL 8QDEVRUEHGEXVLQHVVORVV
'HIHUUHG7D[$VVHWUHFRJQLVHGLQWKHERRNV
'HIHUUHG7D[/LDELOLW\1HW
$SSO\LQJWKHSULQFLSOHVRI$FFRXQWLQJ6WDQGDUGµ$FFRXQWLQJIRU7D[HVRQ,QFRPH¶'HIHUUHG7D[$VVHWVZHUHUHFRJQLVHG
RQO\WRWKHH[WHQWRI'HIHUUHG7D[/LDELOLW\
1RWH/RQJ7HUP/RDQVDQG$GYDQFH
$VDWVW0DUFK $VDWVW0DUFK
D &DSLWDO$GYDQFHV
8QVHFXUHGFRQVLGHUHGJRRG
E 6HFXULW\'HSRVLWV
8QVHFXUHGFRQVLGHUHGJRRG
F /RDQVDQGDGYDQFHVWRUHODWHGSDUWLHV>5HIHU1RWHDQG@
8QVHFXUHGFRQVLGHUHGJRRG
G $GYDQFH7D[1HWRI3URYLVLRQIRUWD[` ODFV3UHYLRXV<HDU
` ODFV
H $GYDQFHVUHFRYHUDEOHLQFDVKRUNLQG
8QVHFXUHGFRQVLGHUHGJRRG
I 2WKHUORDQVDQGDGYDQFHV8QVHFXUHGFRQVLGHUHGJRRG
/RDQVWRHPSOR\HHV
3UHSDLGH[SHQVHV
%DODQFHVZLWK*RYHUQPHQW$XWKRULWLHV
2WKHUV
7RWDO
6WDQGDORQH)LQDQFLDO6WDWHPHQWV
127(6727+(),1$1&,$/67$7(0(176
1RWH2WKHU1RQ&XUUHQW$VVHWV
`LQODFV
$VDWVW $VDWVW
0DUFK 0DUFK
0$7&UHGLW(QWLWOHPHQW
0DUJLQ0RQH\'HSRVLWVZLWK%DQNV>5HIHU1RWHDEHORZ@
/RQJWHUPGHSRVLWVZLWKEDQNVZLWKPDWXULW\SHULRGPRUHWKDQPRQWKV
7RWDO
D +HOGDVOLHQE\EDQNDJDLQVWEDQNJXDUDQWHHVDPRXQWLQJWR` ODFV3UHYLRXV<HDU` ODFVDQG7HUPORDQDPRXQWLQJ
WR` ODFV3UHYLRXV<HDU`1LO
1RWH&XUUHQW,QYHVWPHQWV
$VDWVW0DUFK $VDWVW0DUFK
1RV `LQODFV 1RV `LQODFV
$ (TXLW\ 6KDUHV 4XRWHG6KDUHV RI ` HDFK XQOHVV RWKHUZLVH
VSHFLILHG
%DQVZDUD6\QWH[/LPLWHG
$GYDQWD/LPLWHG(TXLW\6KDUHVRI` HDFK
% (TXLW\ 6KDUHV 8QTXRWHG 6KDUHV RI ` HDFK XQOHVV RWKHUZLVH
VSHFLILHG
$QVDO+L7HFK7RZQVKLSV/LPLWHG
1LWHVK(VWDWH3ULYDWH/LPLWHG
7RWDO(QYLURQPHQW3URMHFW,3ULYDWH/LPLWHG
%&&,QIUDVWUXFWXUH3ULYDWH/LPLWHG
.XQDO6SDFHV3ULYDWH/LPLWHG
& 3UHIHUHQFH 6KDUHV 8QTXRWHG 6KDUHV RI ` HDFK XQOHVV
RWKHUZLVHVSHFLILHG
%&&,QIUDVWUXFWXUH3ULYDWH/LPLWHG6KDUHVRI` HDFK
(NWD:RUOG3ULYDWH/LPLWHG6KDUHVRI` HDFK
$ULPDV'HYHORSHUV3ULYDWH/LPLWHG6KDUHVRI` HDFK
5XQZDO7RZQVKLS3ULYDWH/LPLWHG6KDUHVRI` HDFK
5XQZDO7RZQVKLS3ULYDWH/LPLWHG&ODVV&
' 8QTXRWHG'HEHQWXUHVRI` HDFKXQOHVVRWKHUZLVHVSHFLILHG
$WLWKL %XLOGLQJ &RPPRGLWLHV 3ULYDWH /LPLWHG 'HEHQWXUHV RI
` HDFK
$ULVWR5HDOWRUV3ULYDWH/LPLWHG'HEHQWXUHVRI` HDFK
7RWDO(QYLURQPHQW3URMHFWV3ULYDWH/LPLWHG
1LWHVK+RXVLQJ'HYHORSHUV3ULYDWH/LPLWHG'HEHQWXUHV,9
1LWHVK/DQG+ROGLQJ3ULYDWH/LPLWHG
$ULVWR5HDOWRUV3ULYDWH/LPLWHG,,,'HEHQWXUHVRI` HDFK
$WLWKL %XLOGLQJ &RPPRGLWLHV 3ULYDWH /LPLWHG,, 'HEHQWXUHV RI
` HDFK
7RWDO(QYLURQPHQW3URMHFWV3ULYDWH/LPLWHG'HEHQWXUHV,,
%&&,QIUDVWUXFWXUH3ULYDWH/LPLWHG
5XQZDO7RZQVKLS3ULYDWH/LPLWHG
7RWDO(QYLURQPHQW+DELWDW3ULYDWH/LPLWHG
'KDUPHVK&RQVWUXFWLRQV3ULYDWH/LPLWHG
6WDQGDORQH)LQDQFLDO6WDWHPHQWV
127(6727+(),1$1&,$/67$7(0(176
1RWH&XUUHQW,QYHVWPHQWV&RQWG
$VDWVW0DUFK $VDWVW0DUFK
1RV `LQODFV 1RV `LQODFV
$ULPDV'HYHORSHUV3ULYDWH/LPLWHG
0DUYHO5HDOWRUVDQG'HYHORSHUV3ULYDWH/LPLWHG
.XQDO6SDFHV3ULYDWH/LPLWHG
(NWD:RUOG3ULYDWH/LPLWHG
1LONDQWK7HFK3DUN3ULYDWH/LPLWHG
$QDQG'LYLQH'HYHORSHUV3ULYDWH/LPLWHG
( 0XWXDO )XQGV 8QTXRWHG 8QLWV RI ` HDFK XQOHVV RWKHUZLVH
VSHFLILHG
+')&&DVK0DQDJHPHQW7UHDVXU\$GYDQWDJH3ODQ:HHNO\
'LYLGHQG1$93UHYLRXV<HDU` ODFV
+')&/LTXLG)XQG'LUHFW3ODQ*URZWK2SWLRQ1$93UHYLRXV
<HDU` ODFV
.RWDN/LTXLG6FKHPH3ODQ$'LUHFW3ODQ*URZWK1$9
` ODFV3UHYLRXV<HDU` ODFV8QLWVRI` HDFK
/ 7/LTXLG)XQG'LUHFW3ODQ*URZWK1$9` ODFV
3UHYLRXV<HDU` ODFV8QLWVRI` HDFK
5HOLDQFH/LTXLG)XQG7UHDVXUH3ODQ'LUHFW*URZWK3ODQ
*URZWK2SWLRQ/)$*1$93UHYLRXV<HDU` ODFV8QLWV
RI` HDFK
5HOLDQFH/LTXLGLW\)XQG'LUHFW*URZWK3ODQ*URZWK2SWLRQ
/4$*1$9` ODFV3UHYLRXV<HDU` ODFV8QLWV
RI` HDFK
+6%&&DVK)XQG*URZWK1$93UHYLRXV<HDU` ODFV
8QLWVRI` HDFK
7DWD0RQH\0DUNHW)XQG'LUHFW3ODQ*URZWK1$93UHYLRXV
<HDU` ODFV8QLWVRI` HDFK
.RWDN)ORDWHU6KRUW7HUP'LUHFW3ODQ*URZWK1$9`
ODFV3UHYLRXV<HDU` ODFV8QLWVRI` HDFK
5HOLDQFH/LTXLG)XQG7UHDVXU\3ODQ'LUHFW*URZWK3ODQ
*URZWK2SWLRQ1$9`ODFV8QLWVRI` HDFK
-0+LJK/LTXLGLW\)XQG'LUHFW*URZWK2SWLRQ1$9
` ODFV
6XQGDUDP0RQH\)XQG'LUHFW3ODQ*URZWK1$9
` ODFV
7DWD6KRUW7HUP%RQG)XQG'LUHFW3ODQ*URZWK1$9
` ODFV
5HOLJDUH,QYHVFR/LTXLG)XQG'LUHFW3ODQ*URZWK1$9
3UHYLRXV<HDU` ODFV8QLWVRI` HDFK
+')&6KRUW7HUP2SSRUWXQLWLHV)XQG'LUHFW3ODQ*URZWK
2SWLRQ1$9` ODFV
+')&&DVK0DQDJHPHQW)XQG6DYLQJV3ODQ'LUHFW3ODQ
*URZWK2SWLRQ1$9` ODFV
,'%,/LTXLG)XQG5HJXODU3ODQ*URZWK1$9` ODFV
8QLWVRI` HDFK
87,/LTXLG&DVK3ODQ,QVWLWXWLRQDO'LUHFW3ODQ*URZWK1$9
` ODFV8QLWVRI` HDFK
+')&&DVK0DQDJHPHQW)XQG6DYLQJV3ODQ*URZWK
'LUHFW3ODQ1$9` ODFV
6WDQGDORQH)LQDQFLDO6WDWHPHQWV
127(6727+(),1$1&,$/67$7(0(176
1RWH&XUUHQW,QYHVWPHQWV&RQWG
$VDWVW0DUFK $VDWVW0DUFK
1RV `LQODFV 1RV `LQODFV
) 0XWXDO)XQGV4XRWHG8QLWVRI` HDFKXQOHVVRWKHUZLVHVSHFLILHG
5HOLDQFH<HDUO\,QWHUYDO)XQG6HULHV'LUHFW3ODQ*URZWK
3ODQ1$93UHYLRXV<HDU` ODFV
87,)L[HG7HUP,QFRPH)XQG6HULHV;9,,;,,,'D\V1$9
3UHYLRXV<HDU` ODFV
'63%ODF5RFN)036HULHV0'LUHFW*URZWK1$9
3UHYLRXV<HDU` ODFV
5HOLJDUH,QYHVFR)036U3ODQ''D\V'LUHFW3ODQ
*URZWK1$93UHYLRXV<HDU` ODFV
/ 7)036HULHV3ODQ1'LUHFW*URZWK1$93UHYLRXV<HDU
` ODFV
.RWDN)036HULHV'LUHFW*URZWK1$93UHYLRXV<HDU
` ODFV
+')&)03'0DUFK6HULHV'LUHFW*URZWK
1$93UHYLRXV<HDU` ODFV
5HOLJDUH,QYHVFR)036U3ODQ$0RQWKV'LUHFW3ODQ
*URZWK1$9` ODFV3UHYLRXV<HDU` ODFV
+')&)03'$SULO6HULHV'LUHFW*URZWK1$9
` ODFV
* &HUWLILFDWHRI'HSRVLWV
+RXVLQJ'HYHORSPHQW)LQDQFH&RUSRUDWLRQ/LPLWHG
3QE+RXVLQJ)LQDQFH/LPLWHG
/HVV $JJUHJDWHSURYLVLRQIRUGLPLQXWLRQLQYDOXHRI&XUUHQW
,QYHVWPHQWV
7RWDO
%RRN9DOXH 0DUNHW9DOXH
VW VW VW VW
0DUFK 0DUFK 0DUFK 0DUFK
`LQODFV `LQODFV `LQODFV `LQODFV
$JJUHJDWHRI4XRWHG,QYHVWPHQWV
$JJUHJDWHRI8QTXRWHG,QYHVWPHQWV
1HWDVVHWYDOXHLQFDVHRIPXWXDOIXQGV
)RUEDVLVRIYDOXDWLRQUHIHUµ9µLQ$QQH[XUH,
6WDQGDORQH)LQDQFLDO6WDWHPHQWV
127(6727+(),1$1&,$/67$7(0(176
1RWH,QYHQWRULHV
`LQODFV
$VDW $VDW
VW0DUFK VW0DUFK
D 5DZ0DWHULDOV
LQWUDQVLW
E :RUNLQSURJUHVV
F )LQLVKHGJRRGV
G 6WRFNLQWUDGH
LQWUDQVLW
H 6WRUHVDQGVSDUHV
LQWUDQVLW
I /RRVH7RROV
7RWDO
'HWDLOVRI5DZ0DWHULDOV
:RRODQG:RRO7RSV
3RO\HVWHU7RZ)LEUH9LVFRVH)LEUH2WKHU1DWXUDO)LEUHV
<DUQ
6KLUWLQJ)DEULFV
2WKHUV
7RWDO
'HWDLOVRI:RUNLQ3URJUHVV
)DEULFV
5XJV%ODQNHWVDQG6KDZOV
)XUQLVKLQJ)DEULFV
7RWDO
'HWDLOVRI)LQLVKHG*RRGV
)DEULFV
5XJV%ODQNHWVDQG6KDZOV
)XUQLVKLQJ)DEULFV
2WKHUV
7RWDO
'HWDLOVRI6WRFNLQWUDGH
*DUPHQWV
6KLUWLQJV
6XLWLQJ)DEULFV
2WKHUV
7RWDO
)RUPRGHRIYDOXDWLRQUHIHU$QQH[XUH,
6WDQGDORQH)LQDQFLDO6WDWHPHQWV
127(6727+(),1$1&,$/67$7(0(176
1RWH7UDGH5HFHLYDEOHV
`LQODFV
$VDW $VDW
VW0DUFK VW0DUFK
7UDGHUHFHLYDEOHVRXWVWDQGLQJIRUDSHULRGH[FHHGLQJVL[PRQWKVIURPWKHGDWHWKH\
DUHGXHIRUSD\PHQW
6HFXUHGFRQVLGHUHGJRRG
8QVHFXUHGFRQVLGHUHGJRRG
8QVHFXUHGFRQVLGHUHGGRXEWIXO
/HVV3URYLVLRQIRUGRXEWIXOGHEWV
7UDGHUHFHLYDEOHVRXWVWDQGLQJIRUDSHULRGOHVVWKDQVL[PRQWKVIURPWKHGDWHWKH\
DUHGXHIRUSD\PHQW
6HFXUHGFRQVLGHUHGJRRG
8QVHFXUHGFRQVLGHUHGJRRG
7RWDO
1RWH&DVKDQG%DQNEDODQFHV
L &DVKDQG&DVK(TXLYDOHQWV
D %DODQFHVZLWKEDQNV
E &KHTXHVGUDIWVRQKDQG
F &DVKRQKDQG
LL 2WKHU%DQNEDODQFHV
D 8QFODLPHGGLYLGHQGDFFRXQW
E /RQJ WHUP GHSRVLWV ZLWK PDWXULW\ PRUH WKDQ PRQWKV EXW OHVV WKDQ
PRQWKV>5HIHU1RWHDEHORZ@
F %DODQFHVZLWKEDQNVWRWKHH[WHQWKHOGDVPDUJLQPRQH\>5HIHU1RWHE
EHORZ@
7RWDO
D ,QFOXGHVGHSRVLWVDJJUHJDWLQJ` ODFV3UHYLRXV<HDU` ODFVHDUPDUNHGDJDLQVWGHEHQWXUHVGXHIRUUHGHPSWLRQ
LQQH[WWZHOYHPRQWKV
E +HOGDVOLHQE\EDQNDJDLQVWWHUPORDQDPRXQWLQJWR` ODFV3UHYLRXV<HDU` 1LO
1RWH6KRUWWHUPORDQVDQGDGYDQFHV
`LQODFV
$VDW $VDW
VW0DUFK VW0DUFK
D /RDQVDQGDGYDQFHVWRUHODWHGSDUWLHV>5HIHU1RWHDQG@
8QVHFXUHGFRQVLGHUHGJRRG
E 6HFXULW\'HSRVLWV
8QVHFXUHGFRQVLGHUHGJRRG
F $GYDQFHVUHFRYHUDEOHLQFDVKRUNLQG
8QVHFXUHGFRQVLGHUHGJRRG
G 2WKHUV8QVHFXUHGFRQVLGHUHGJRRG
/RDQVWRHPSOR\HHV
3UHSDLGH[SHQVHV
%DODQFHVZLWK*RYHUQPHQW$XWKRULWLHV
$GYDQFHVWRVXSSOLHUV
2WKHUV
7RWDO
6WDQGDORQH)LQDQFLDO6WDWHPHQWV
127(6727+(),1$1&,$/67$7(0(176
1RWH2WKHU&XUUHQW$VVHWV
`LQODFV
$VDW VW0DUFK $VDW VW0DUFK
<HDUHQGHG <HDUHQGHG
VW0DUFK VW0DUFK
6DOHRISURGXFWV
L 0DQXIDFWXUHGJRRGV
LL 6WRFNLQWUDGH
/HVV
6DOHVUHWXUQV
2WKHUGLVFRXQWVDQGDOORZDQFHV
6DOHRIVHUYLFHV
L -RE:RUN
LL ,QFRPHIURPDLUWD[LRSHUDWLRQV
2WKHURSHUDWLQJUHYHQXHV
L ([SRUW,QFHQWLYHVHWF
LL 3URFHVVZDVWHVDOH
7RWDO
'HWDLOVRI6DOHRI3URGXFWV
&ODVVRI*RRGV
0DQXIDFWXUHG*RRGV
)DEULFV
5XJV%ODQNHWVDQG6KDZOV
)XUQLVKLQJ)DEULFV
2WKHUV
$
6WRFNLQWUDGH
*DUPHQWV
6KLUWLQJ
6XLWLQJ)DEULFV
2WKHUV
%
7RWDO$%
6WDQGDORQH)LQDQFLDO6WDWHPHQWV
127(6727+(),1$1&,$/67$7(0(176
1RWH2WKHU,QFRPH
`LQODFV
<HDUHQGHG <HDUHQGHG
VW0DUFK VW0DUFK
,QWHUHVW,QFRPH
'LYLGHQG
L IURP&XUUHQW,QYHVWPHQWV
LL IURP/RQJWHUP,QYHVWPHQWV
1HWJDLQRQVDOHRIFXUUHQWLQYHVWPHQWV
1HWJDLQRQVDOHRI/RQJWHUP,QYHVWPHQWV
1HWVXUSOXVRQGLVSRVDORIDVVHWV
5HQWDQGFRPSHQVDWLRQ
3URYLVLRQQRORQJHUUHTXLUHG
2WKHUQRQRSHUDWLQJLQFRPH
7RWDO
1RWH&RVWRI0DWHULDOV&RQVXPHG
5DZ0DWHULDOV
2SHQLQJ6WRFN
3XUFKDVHV
/HVV6DOHV
/HVV6WRFNRI6XLW0DQXIDFWXULQJXQLW>5HIHU1RWH@
/HVV&ORVLQJ6WRFN
7RWDO
,PSRUWHGDQG,QGLJHQRXV5DZ0DWHULDOV&RQVXPHG
`LQODFV `LQODFV
,PSRUWHG
,QGLJHQRXV
6WDQGDORQH)LQDQFLDO6WDWHPHQWV
127(6727+(),1$1&,$/67$7(0(176
1RWH0DQXIDFWXULQJDQG2SHUDWLQJ&RVWV
`LQODFV
<HDUHQGHG <HDUHQGHG
VW0DUFK VW0DUFK
&RQVXPSWLRQRIVWRUHVDQGVSDUHSDUWV
3RZHUDQGIXHO
-REZRUNFKDUJHV
5HSDLUVWREXLOGLQJV
5HSDLUVWRPDFKLQHU\
2WKHU0DQXIDFWXULQJDQG2SHUDWLQJH[SHQVHV
7RWDO
,PSRUWHGDQG,QGLJHQRXV6WRUHVDQG6SDUH3DUWVFRQVXPHG
<HDUHQGHG VW0DUFK <HDUHQGHG VW0DUFK
`LQODFV `LQODFV
1RWH(PSOR\HHEHQHILWVH[SHQVH5HIHUQRWH
6DODULHV:DJHV%RQXVHWFLQFOXGLQJUHQW` ODFV3UHYLRXV<HDU` ODFV
*UDWXLW\
&RQWULEXWLRQVWRSURYLGHQWDQGRWKHUIXQGV
6WDIIZHOIDUHH[SHQVHV
7RWDO
6WDQGDORQH)LQDQFLDO6WDWHPHQWV
127(6727+(),1$1&,$/67$7(0(176
1RWH)LQDQFH&RVWV
`LQODFV
<HDUHQGHG <HDUHQGHG
VW0DUFK VW0DUFK
,QWHUHVW([SHQVH
1HWRI6XEVLG\` ODFV3UHYLRXV<HDU` ODFV
$SSOLFDEOHQHWORVVRQIRUHLJQFXUUHQF\WUDQVDFWLRQVDQGWUDQVODWLRQ
2WKHUERUURZLQJFRVWV
7RWDO
1RWH2WKHU([SHQVHV
5HQW
/HDVH5HQWDOV
,QVXUDQFHQHW
5HSDLUVDQG0DLQWHQDQFH2WKHUV
5DWHVDQGWD[HV
$GYHUWLVHPHQW
&RPPLVVLRQWRVHOOLQJDJHQWV
)UHLJKW2FWURLHWF
%DG'HEWV$GYDQFHV&ODLPVDQG'HSRVLWVZULWWHQRII
/HJDODQG3URIHVVLRQDOFKDUJHV
7UDYHOOLQJ([SHQVHV
6DOHV3URPRWLRQ([SHQVHV
([SHQGLWXUHWRZDUGV&RUSRUDWH6RFLDO5HVSRQVLELOLW\&65DFWLYLWLHV
&RQWULEXWLRQWR&KDULWDEOH)XQGV
3URYLVLRQIRUGLPLQXWLRQLQYDOXHRIORQJWHUP,QYHVWPHQWV
'LUHFWRU¶V6LWWLQJ)HHV
&RPPLVVLRQWR1RQ([HFXWLYH'LUHFWRUV
1HWORVVRQIRUHLJQFXUUHQF\WUDQVDFWLRQVDQGWUDQVODWLRQRWKHUWKDQFRQVLGHUHGDV
ILQDQFHFRVW
1HWORVVRQVDOHRI/RQJWHUP,QYHVWPHQWV
1HWORVVRQGLVSRVDORIDVVHWV
3URYLVLRQIRUGRXEWIXOGHEWV
0LVFHOODQHRXVH[SHQVHV
7RWDO
'HWDLOVRISD\PHQWVWRDXGLWRUVLQFOXGHGLQ/HJDODQG3URIHVVLRQDOFKDUJHV
D $XGLWIHHV6WDQGDORQH)LQDQFLDO6WDWHPHQWV
&RQVROLGDWHG)LQDQFLDO6WDWHPHQWV
E /LPLWHG5HYLHZXQGHU/LVWLQJ$JUHHPHQW
F IRURWKHUVHUYLFHV
G IRUUHLPEXUVHPHQWRIH[SHQVHV
7RWDO
6WDQGDORQH)LQDQFLDO6WDWHPHQWV
127(6727+(),1$1&,$/67$7(0(176
([FHSWLRQDOLWHPVUHSUHVHQW
`LQODFV
<HDUHQGHG <HDUHQGHG
VW0DUFK VW0DUFK
D $PRXQWSDLGWRHPSOR\HHVXQGHU956
E 'LPLQXWLRQLQYDOXHRIH[SRVXUHLQD6XEVLGLDU\-RLQW9HQWXUH
:ULWWHQEDFN>5HIHU1RWHLLIRU3UHYLRXV<HDU@
F :ULWHRIIRIORDQV GHEHQWXUHVLQD-RLQW9HQWXUH
>5HIHU1RWHLL@IRU3UHYLRXV<HDU
/HVV3URYLVLRQZULWWHQEDFN
G ,PSDLUPHQWRI*DVEDVHG&DSWLYH3RZHU3ODQW
>5HIHU1RWH@IRU3UHYLRXV<HDU
H 6XUSOXVRQGLYHVWPHQWRI6XLWPDQXIDFWXULQJXQLW
5HIHU1RWH
6WDQGDORQH)LQDQFLDO6WDWHPHQWV
127(6727+(),1$1&,$/67$7(0(176
`LQODFV
<HDUHQGHG <HDUHQGHG
VW0DUFK VW0DUFK
9DOXHRILPSRUWVLQFOXGLQJLQWUDQVLWFDOFXODWHGRQ&,)EDVLVLQUHVSHFWRI
L 5DZ0DWHULDOV
LL 6WRUHVDQGVSDUHSDUWV
LLL &DSLWDO*RRGV
LY 5HSDLUVWRPDFKLQHU\
([SHQGLWXUHLQ)RUHLJQ&XUUHQF\RQDFFRXQWRI
L ,QWHUHVWH[SHQVHV
LL /HJDODQGSURIHVVLRQDOFKDUJHV
LLL &RPPLVVLRQWRVHOOLQJDJHQWV
LY $GYHUWLVHPHQW
Y 7UDYHOOLQJH[SHQVHV
YL 2WKHUV
(DUQLQJVLQ)RUHLJQ&XUUHQF\
L 5HYHQXHIURP([SRUWVRQ)2%%DVLV
LL 'LYLGHQG
LLL 2WKHUV
'LYLGHQGUHPLWWHGLQIRUHLJQH[FKDQJH
L 'LYLGHQGSDLGGXULQJWKH\HDU
LL 1XPEHURIQRQUHVLGHQWVKDUHKROGHUV
LLL 1XPEHURIHTXLW\VKDUHVKHOGE\VXFKQRQUHVLGHQWVKDUHKROGHUV
LY <HDUWRZKLFKWKHGLYLGHQGUHODWHWR
D 'HULYDWLYHRXWVWDQGLQJDVDWWKHUHSRUWLQJGDWH )RUHLJQ&XUUHQF\LQODFV
$VDW $VDW
3DUWLFXODUV VW0DUFK VW0DUFK
)RUZDUGFRQWUDFWVWRVHOO86' 86' 86'
)RUZDUGFRQWUDFWVWREX\86' 86' 86'
)RUZDUGFRQWUDFWVWREX\$8' $8' $8'
2SWLRQFRQWUDFWVWREX\86' 86' 86'
$OOWKHGHULYDWLYHLQVWUXPHQWVKDYHEHHQDFTXLUHGIRUKHGJLQJSXUSRVHV
E 3DUWLFXODUVRIXQKHGJHGIRUHLJQFXUUHQF\H[SRVXUHVDVDWWKHUHSRUWLQJGDWH
86' (852 *%3 50% $8' &+) $('
L 7UDGH5HFHLYDEOH
LL 7UDGHSD\DEOHV
LLL /RDQVWDNHQ
LY &DVKDQG%DQN
EDODQFHV
6WDQGDORQH)LQDQFLDO6WDWHPHQWV
127(6727+(),1$1&,$/67$7(0(176
/HDVH
`LQODFV
$VDW $VDW
D 3UHPLVHVWDNHQRQRSHUDWLQJOHDVH
7KH &RPSDQ\ KDV VLJQLILFDQW RSHUDWLQJ OHDVHV IRU SUHPLVHV 7KHVH OHDVH
DUUDQJHPHQWV UDQJH IRU D SHULRG EHWZHHQ PRQWKV DQG \HDUV ZKLFK
LQFOXGHERWKFDQFHOODEOHDQGQRQFDQFHOODEOHOHDVHV0RVWRIWKHOHDVHVDUH
UHQHZDEOH IRU IXUWKHU SHULRG RQ PXWXDOO\ DJUHHDEOH WHUPV DQG DOVR LQFOXGH
HVFDODWLRQFODXVHV
:LWK UHVSHFW WR QRQFDQFHOODEOH RSHUDWLQJ OHDVH WKH IXWXUH PLQLPXP OHDVH
SD\PHQWDVDW%DODQFH6KHHWGDWHLVDVXQGHU
)RUDSHULRGQRWODWHUWKDQRQH\HDU
)RUDSHULRGODWHUWKDQRQH\HDUDQGQRWODWHUWKDQILYH\HDUV
)RUDSHULRGODWHUWKDQILYH\HDUV
E 9HKLFOHVWDNHQRQRSHUDWLQJOHDVH
7KH &RPSDQ\ KDV RSHUDWLQJ OHDVHV IRU YHKLFOHV 7KHVH OHDVH DUUDQJHPHQWV
UDQJHIRUDSHULRGEHWZHHQDQG\HDUVZKLFKLQFOXGHERWKFDQFHOODEOHDQG
QRQFDQFHOODEOHOHDVHV0RVWRIWKHOHDVHVDUHUHQHZDEOHIRUIXUWKHUSHULRGRQ
PXWXDOO\DJUHHDEOHWHUPV
:LWK UHVSHFW WR QRQFDQFHOODEOH RSHUDWLQJ OHDVH WKH IXWXUH PLQLPXP OHDVH
SD\PHQWDVDW%DODQFH6KHHWGDWHLVDVXQGHU
)RUDSHULRGQRWODWHUWKDQRQH\HDU
)RUDSHULRGODWHUWKDQRQH\HDUDQGQRWODWHUWKDQILYH\HDUV
)RUDSHULRGODWHUWKDQILYH\HDUV
7RWDORSHUDWLQJOHDVHH[SHQVHVLQFOXGLQJ&RQWLQJHQW5HQW` ODFV3UHYLRXV
<HDU ` ODFV GHELWHG WR 6WDWHPHQW RI 3URILW DQG /RVV LV ` ODFV
3UHYLRXV<HDU` ODFV
F 3UHPLVHVJLYHQRQRSHUDWLQJOHDVH
7KH &RPSDQ\ KDV JLYHQ SUHPLVHV RQ RSHUDWLQJ OHDVHV 7KHVH OHDVH
DUUDQJHPHQWVUDQJHIRUDSHULRGEHWZHHQDQG\HDUVDQGLQFOXGHERWK
FDQFHOODEOHDQGQRQFDQFHOODEOHOHDVHV0RVWRIWKHOHDVHVDUHUHQHZDEOHIRU
IXUWKHUSHULRGRQPXWXDOO\DJUHHDEOHWHUPV
L %XLOGLQJV
*URVVFDUU\LQJDPRXQW
'HSUHFLDWLRQIRUWKH\HDU
$FFXPXODWHG'HSUHFLDWLRQ
7KHVH OHDVLQJ DUUDQJHPHQWV IRU XVH RI SUHPLVHV DUH SULPDULO\ ZLWK
VXEVLGLDULHVMRLQWYHQWXUHVHWF6LQFHWKHVHOHDVHVJHQHUDOO\LQYROYHOHDVLQJ
RISRUWLRQRISUHPLVHVWKHLGHQWLILFDWLRQRIYDOXHUHODWDEOHWRWKHSRUWLRQV
KDVEHHQGRQHWRWKHH[WHQWSRVVLEOH
LL 7KHWRWDOIXWXUHPLQLPXPOHDVHUHQWDOVUHFHLYDEOHDWWKH%DODQFH6KHHW
GDWHLVDVXQGHU
)RUDSHULRGQRWODWHUWKDQRQH\HDU
)RUDSHULRGODWHUWKDQRQH\HDUDQGQRWODWHUWKDQILYH\HDUV
)RUDSHULRGODWHUWKDQILYH\HDUV
6WDQGDORQH)LQDQFLDO6WDWHPHQWV
127(6727+(),1$1&,$/67$7(0(176
'LVFORVXUHVSXUVXDQWWR$FFRXQWLQJ6WDQGDUG³(PSOR\HH%HQHILWV´
D 7KH&RPSDQ\KDVUHFRJQLVHG` /DFV3UHYLRXV<HDU` /DFVLQWKH6WDWHPHQWRI3URILWDQG/RVVXQGHU'HILQHG
&RQWULEXWLRQ3ODQV
E 'HWDLOVRI'HILQHG%HQHILW3ODQ
`LQODFV
VW0DUFK VW0DUFK
*UDWXLW\ 3HQVLRQ 3URYLGHQW *UDWXLW\ 3HQVLRQ 3URYLGHQW
)XQG )XQG
&RPSRQHQWVRI(PSOR\HU([SHQVH
D &XUUHQW6HUYLFH&RVW
E ,QWHUHVW&RVW
F ([SHFWHG5HWXUQRQ3ODQ$VVHWV
G $FWXDULDO*DLQ/RVV
H 3DVW6HUYLFH&RVW
I 'LIIHUHQFHLQIDLUYDOXHRIIXQGHG
DVVHWVDQGREOLJDWLRQDWWKH
EHJLQQLQJRIWKH\HDU
J 7RWDOH[SHQVHJDLQUHFRJQLVHG
LQWKH6WDWHPHQWRI3URILWDQG/RVV
$FFRXQW
1HW $VVHW/LDELOLW\ UHFRJQLVHG LQ %DO
DQFH6KHHW
D 3UHVHQW9DOXHRI2EOLJDWLRQDVDW
WKHFORVHRIWKH\HDU
E )DLU9DOXHRI3ODQ$VVHWVDVDWWKH 1$ 1$
FORVHRIWKH\HDU
F $VVHW/LDELOLW\UHFRJQLVHGLQWKH
%DODQFH6KHHW
&KDQJH LQ 'HILQHG %HQHILW 2EOLJDWLRQ
'%2GXULQJWKH\HDUHQGHG
D 3UHVHQW9DOXHRI2EOLJDWLRQDVDW
WKHEHJLQQLQJRIWKH\HDU
E &XUUHQW6HUYLFH&RVW
F ,QWHUHVW&RVW
G (PSOR\HHV&RQWULEXWLRQ
H $FWXDULDO*DLQ/RVV
I /LDELOLWLHVDVVXPHGRQ$FTXLVLWLRQ
6HWWOHGRQ'LYHVWLWXUH
J %HQHILWV3DLG
K 3UHVHQW9DOXHRI2EOLJDWLRQDVDW
WKHFORVHRIWKH\HDU
&KDQJHVLQWKH)DLU9DOXHRI3ODQ$VVHWV
D 3UHVHQW9DOXHRI3ODQ$VVHWVDVDW 1$ 1$
WKHEHJLQQLQJRIWKH\HDU
E ([SHFWHG5HWXUQRQ3ODQ$VVHWV 1$ 1$
F $FWXDULDO*DLQ/RVV 1$ 1$
G (PSOR\HU&RQWULEXWLRQ 1$
H (PSOR\HHV&RQWULEXWLRQ 1$ 1$
I $FWXDO&RPSDQ\&RQWULEXWLRQ 1$
J /LDELOLWLHVDVVXPHGRQ$FTXLVLWLRQ 1$ 1$
6HWWOHGRQ'LYHVWLWXUH
K %HQHILWV3DLG 1$ 1$
L )DLU9DOXHRI3ODQ$VVHWVDVDWWKH 1$ 1$
FORVHRIWKH\HDU
6WDQGDORQH)LQDQFLDO6WDWHPHQWV
127(6727+(),1$1&,$/67$7(0(176
'LVFORVXUHVSXUVXDQWWR$FFRXQWLQJ6WDQGDUG³(PSOR\HH%HQHILWV´&RQWG
`LQODFV
VW0DUFK VW0DUFK
*UDWXLW\ 3HQVLRQ 3URYLGHQW *UDWXLW\ 3HQVLRQ 3URYLGHQW
)XQG )XQG
& 3529,'(17)81'
D 'LVFRXQW5DWHSHUDQQXP
E ([SHFWHG5DWHRI5HWXUQRQ$VVHWV
SHUDQQXP
F ,QWHUHVWUDWHJXDUDQWHH
'HILQHG%HQHILW3ODQIRU<HDUV
$ *5$78,7<
1HW$VVHW/LDELOLW\UHFRJQLVHGLQWKH
%DODQFH6KHHW
D 3UHVHQW9DOXHRI2EOLJDWLRQDVDWWKH
FORVHRIWKH\HDU
E )DLUYDOXHRISODQDVVHWDVDWWKH
FORVHRIWKH\HDU
F $VVHW/LDELOLW\UHFRJQLVHGLQWKH
%DODQFH6KHHW
&KDQJHLQ'HILQHG%HQHILW
2EOLJDWLRQ'%2GXULQJWKH\HDU
HQGHG
$FWXDULDO*DLQ/RVV
&KDQJHVLQWKHIDLUYDOXHRI3ODQ
$VVHWV
$FWXDULDO*DLQ/RVV
6WDQGDORQH)LQDQFLDO6WDWHPHQWV
127(6727+(),1$1&,$/67$7(0(176
'LVFORVXUHVSXUVXDQWWR$FFRXQWLQJ6WDQGDUG³(PSOR\HH%HQHILWV´&RQWG
0DU 0DU 0DU 0DU 0DU
% 3(16,21
D 3UHVHQW9DOXHRI2EOLJDWLRQDVDWWKH
FORVHRIWKH\HDU
E )DLUYDOXHRISODQDVVHWDVDWWKH 1$ 1$ 1$ 1$ 1$
FORVHRIWKH\HDU
F $VVHW/LDELOLW\UHFRJQLVHGLQWKH
%DODQFH6KHHW
&KDQJHLQ'HILQHG%HQHILW
2EOLJDWLRQ'%2GXULQJWKH\HDU
HQGHG
$FWXDULDO*DLQ/RVV
&KDQJHVLQWKHIDLUYDOXHRI3ODQ
$VVHWV
$FWXDULDO*DLQ/RVV 1$ 1$ 1$ 1$ 1$
& 3529,'(17)81'
D 3UHVHQW9DOXHRI2EOLJDWLRQDVDWWKH
FORVHRIWKH\HDU
E )DLUYDOXHRISODQDVVHWDVDWWKH
FORVHRIWKH\HDU
F $VVHW/LDELOLW\UHFRJQLVHGLQWKH
%DODQFH6KHHW
&KDQJHLQ'HILQHG%HQHILW
2EOLJDWLRQ'%2GXULQJWKH\HDU
HQGHG
$FWXDULDO*DLQ/RVV
&KDQJHVLQWKHIDLUYDOXHRI3ODQ
$VVHWV
$FWXDULDO*DLQ/RVV
F 2WKHUORQJWHUPVEHQHILWV&RPSHQVDWHG$EVHQFH$PRXQWUHFRJQLVHGLQWKH%DODQFH6KHHWDQGPRYHPHQWVLQQHWOLDELOLW\
`LQODFV
3DUWLFXODUV 0DUFK 0DUFK
([SHQVHVUHFRJQL]HGLQWKH6WDWHPHQWRI3URILWDQG/RVV
2SHQLQJEDODQFHRIFRPSHQVDWHGDEVHQFHVD
/LDELOLWLHVDVVXPHGRQ$FTXLVLWLRQ6HWWOHGRQ'LYHVWLWXUHE
3UHVHQWYDOXHRIFRPSHQVDWHGDEVHQFHVDVSHUDFWXDU\YDOXDWLRQDVDWWKH\HDU
HQGF
&RPSHQVDWHGDEVHQFHV>FKDUJHGLQFRPH@UHFRJQL]HGLQWKHVWDWHPHQWRI3URILW
DQG/RVVIRU\HDUDEF
WDNHVLQWRDFFRXQWWKHLQIODWLRQVHQLRULW\SURPRWLRQVDQGRWKHUUHOHYDQWIDFWRUV
,QFDVHRIFHUWDLQHPSOR\HHVWKH3URYLGHQW)XQGFRQWULEXWLRQLVPDGHWRDWUXVWDGPLQLVWHUHGE\WKH&RPSDQ\,QWHUPVRI
WKHJXLGDQFHQRWHLVVXHGE\WKHLQVWLWXWHRI$FWXDULHVRI,QGLDWKHDFWXDU\KDVSURYLGHGDYDOXDWLRQRI3URYLGHQW)XQGOLDELOLW\
EDVHGRQWKHDVVXPSWLRQVOLVWHGDERYHDQGGHWHUPLQHGWKDWWKHUHLVQRVKRUWIDOODVDWVW0DUFK
7KHH[FHVVRIDVVHWVRYHUOLDELOLWLHVKDVQRWEHHQUHFRJQLVHGLQWKHVWDWHPHQWRISURILWDQGORVVDVWKHSODQDVVHWVDUHLQDQ
,QFRPH7D[$SSURYHG,UUHYRFDEOH7UXVW)XQG
6WDQGDORQH)LQDQFLDO6WDWHPHQWV
127(6727+(),1$1&,$/67$7(0(176
5HODWHGSDUW\GLVFORVXUHV
5HODWLRQVKLSV
D 6XEVLGLDU\&RPSDQLHV
3DVKPLQD+ROGLQJV/LPLWHG
(YHUEOXH$SSDUHO/LPLWHG
-D\ND\RUJ$*
5D\PRQG(XURSH/LPLWHG
-.)LOHV,QGLD/LPLWHG
&RORUSOXV)DVKLRQV/LPLWHG
6LOYHU6SDUN$SSDUHO/LPLWHG
&HOHEUDWLRQV$SSDUHO/LPLWHG
5LQJ 3OXV $TXD/LPLWHG
5D\PRQG:RROOHQ2XWHUZHDU/LPLWHG
5 $/RJLVWLFV,QF
6FLVVRUV(QJLQHHULQJ3URGXFWV/LPLWHG
-.7DODERW/LPLWHG
5D\PRQG$SSDUHO/LPLWHG
5D\PRQG/X[XU\&RWWRQV/LPLWHG)RUPHUO\NQRZQDV5D\PRQG=DPEDLWL/LPLWHG
E -RLQW9HQWXUHVDQG-RLQWO\FRQWUROOHGHQWLWLHV
5RVH(QJLQHHUHG3URGXFWV,QGLD3ULYDWH/LPLWHG
5D\PRQG8&2'HQLP3ULYDWH/LPLWHGDQGLWVVXEVLGLDULHV-RLQW9HQWXUH
8&2)DEULFV,QFDQGLWV6XEVLGLDULHV
8&27HVWDWXUD6UO
8&25D\PRQG'HQLP+ROGLQJ19
F $VVRFLDWHV
-.,QYHVWR7UDGH,QGLD/LPLWHG
37-D\ND\)LOHV,QGRQHVLD
-.+HOHQH&XUWLV/LPLWHG
-.$QVHOO/LPLWHG
5DGKD.UVKQD)LOPV/LPLWHG
G 2WKHUUHODWHG3DUW\
-.,QYHVWRUV%RPED\/LPLWHG
H .H\0DQDJHPHQW3HUVRQQHO
6KUL*DXWDP+DUL6LQJKDQLD
6KUL+6XQGHU
I 5HODWLYHVRINH\PDQDJHPHQWSHUVRQQHODQGWKHLUHQWHUSULVHVZKHUHWUDQVDFWLRQVKDYHWDNHQSODFH
'U9LMD\SDW6LQJKDQLD)DWKHURI6KUL*DXWDP+DUL6LQJKDQLD
6PW1DZD]6LQJKDQLD:LIHRI6KUL*DXWDP+DUL6LQJKDQLD
6LOYHU6RDSV3ULYDWH/LPLWHG
$YDQL$JULFXOWXUDO)DUPV3ULYDWH/LPLWHG
6PW0HHQDNVKL6XQGHU:LIHRI6KUL+6XQGHU
6WDQGDORQH)LQDQFLDO6WDWHPHQWV
127(6727+(),1$1&,$/67$7(0(176
5HODWHGSDUW\GLVFORVXUHV&RQWG
7UDQVDFWLRQVFDUULHGRXWZLWKUHODWHGSDUWLHVUHIHUUHGLQDERYHLQRUGLQDU\FRXUVHRIEXVLQHVV
`LQODFV
1DWXUHRIWUDQVDFWLRQV 5HODWHG3DUWLHV
5HIHUUHG 5HIHUUHG 5HIHUUHG 5HIHUUHG 5HIHUUHG 5HIHUUHG
LQD LQE LQF LQG LQH LQI
DERYH DERYH DERYH DERYH DERYH DERYH
3XUFKDVHV
*RRGVDQG0DWHULDOV
)L[HG$VVHWV
'(3%&HUWLILFDWHHWF
6DOHV
*RRGV0DWHULDOVDQG6HUYLFHV
-REZRUNFKDUJHVUHFHLYHG
)L[HG$VVHWV
'LYHVWPHQWRI6XLWSODQW
([SHQVHV
5HQWDQGRWKHUVHUYLFHFKDUJHV
-REZRUNFKDUJHV
&RPPLVVLRQWRVHOOLQJDJHQW
5HPXQHUDWLRQ>5HIHU1RWH@
IRU3UHYLRXV<HDU
'HSXWDWLRQRIVWDII
,QWHUHVWSDLG
3URIHVVLRQDO)HHV
'LUHFWRUV¶)HHV &RPPLVVLRQLQFOXGLQJVHUYLFHWD[
2WKHU5HLPEXUVHPHQWV
,QFRPH
5HQWDQGRWKHUVHUYLFHFKDUJHV
5R\DOW\
,QWHUHVW'LYLGHQG
6WDQGDORQH)LQDQFLDO6WDWHPHQWV
127(6727+(),1$1&,$/67$7(0(176
5HODWHGSDUW\GLVFORVXUHV&RQWG
`LQODFV
1DWXUHRIWUDQVDFWLRQV 5HODWHG3DUWLHV
5HIHUUHG 5HIHUUHG 5HIHUUHG 5HIHUUHG 5HIHUUHG 5HIHUUHG
LQD LQE LQF LQG LQH LQI
DERYH DERYH DERYH DERYH DERYH DERYH
2WKHU5HFHLSWV
'HSXWDWLRQRIVWDII
$GYHUWLVHPHQW5HLPEXUVHPHQWV
2WKHUUHLPEXUVHPHQWV
)LQDQFH
/RDQVDQG$GYDQFHVJLYHQ
,QYHVWPHQWV
,QYHVWPHQWVPDGH
2XWVWDQGLQJV
'LYLGHQG5HFHLYDEOH
*XDUDQWHHVJLYHQWREDQNV
3D\DEOH
5HFHLYDEOH
$JHQF\3URSHUW\'HSRVLWVSD\DEOH
/RDQVDQG$GYDQFHV
3URSHUW\'HSRVLWUHFHLYDEOH
3UHYLRXV<HDUVILJXUHVDUHLQ
1RWHV
7KHDERYHH[FOXGHVZULWHRIIRIORDQDQGGHEHQWXUHVZULWHEDFNRISURYLVLRQDJDLQVWWKHH[SRVXUH DQGZDLYHRILQWHUHVW
GXULQJWKH3UHYLRXV<HDUZLWKUHVSHFWWR5D\PRQG8&2'HQLP3ULYDWH/LPLWHG>5HIHU1RWHLL@
7KH &RPSDQ\ KDV DJUHHG ZLWK WKH OHQGHUV %DQNV RI VRPH RI WKHVH &RPSDQLHV IRU QRW GLVSRVLQJ RII WKHVH LQYHVWPHQWV
ZLWKRXWWKHLUSULRUFRQVHQW
/RDQVWR6XEVLGLDULHV
/RDQVWRWKH6XEVLGLDULHVKDYHEHHQJLYHQIRUDFTXLVLWLRQRIDVVHWVDQGDXJPHQWLQJZRUNLQJFDSLWDODQGKDYHEHHQXWLOLVHG
IRUWKHVDPH
*XDUDQWHHVJLYHQ
*XDUDQWHHV SURYLGHG WR WKH OHQGHUV RI WKH VXEVLGLDULHV DUH IRU DYDLOLQJ WHUP ORDQV DQG ZRUNLQJ FDSLWDO IDFLOLWLHV IURP WKH
OHQGHUEDQNV
6WDQGDORQH)LQDQFLDO6WDWHPHQWV
127(6727+(),1$1&,$/67$7(0(176
5HODWHGSDUW\GLVFORVXUHV&RQWG
'LVFORVXUHLQUHVSHFWRIPDWHULDOWUDQVDFWLRQVZLWKUHODWHGSDUWLHVGXULQJWKH\HDULQFOXGHGLQDERYH
`LQODFV
3XUFKDVHV
*RRGVDQG0DWHULDOV
5D\PRQG$SSDUHO/LPLWHG
5D\PRQG/X[XU\&RWWRQV/LPLWHG
-.,QYHVWRUV%RPED\/LPLWHG
)L[HG$VVHWV
5D\PRQG$SSDUHO/LPLWHG
'(3%&HUWLILFDWHHWF
6LOYHU6SDUN$SSDUHO/LPLWHG
&HOHEUDWLRQV$SSDUHO/LPLWHG
5D\PRQG/X[XU\&RWWRQV/LPLWHG
6DOHV
*RRGV0DWHULDOVDQG6HUYLFHV
6LOYHU6SDUN$SSDUHO/LPLWHG
5D\PRQG$SSDUHO/LPLWHG
)L[HG$VVHWV
5LQJ3OXV$TXD/LPLWHG
-REZRUNFKDUJHVUHFHLYHG
6LOYHU6SDUN$SSDUHO/LPLWHG
'LYHVWPHQWRI6XLWSODQW
6LOYHU6SDUN$SSDUHO/LPLWHG5HIHU1RWH
([SHQVHV
5HQWDQGRWKHUVHUYLFHFKDUJHV
-.,QYHVWRUV%RPED\/LPLWHG
-.,QYHVWR7UDGH,QGLD/LPLWHG
-REZRUNFKDUJHV
6LOYHU6SDUN$SSDUHO/LPLWHG
&HOHEUDWLRQV$SSDUHO/LPLWHG
-.,QYHVWRUV%RPED\/LPLWHG
&RPPLVVLRQWRVHOOLQJDJHQW
-D\ND\RUJ$*
5D\PRQG(XURSH/LPLWHG
-.,QYHVWRUV%RPED\/LPLWHG
5HPXQHUDWLRQ
6KUL*DXWDP+DUL6LQJKDQLDQHWRIUHFRYHU\
>5HIHU1RWH@
6KUL+6XQGHU
'HSXWDWLRQRIVWDII
5D\PRQG$SSDUHO/LPLWHG
,QWHUHVW3DLG
-.,QYHVWRUV%RPED\/LPLWHG
6WDQGDORQH)LQDQFLDO6WDWHPHQWV
127(6727+(),1$1&,$/67$7(0(176
5HODWHGSDUW\GLVFORVXUHV&RQWG
`LQODFV
3URIHVVLRQDO)HHV
'U9LMD\SDW6LQJKDQLD)DWKHURI6KUL*DXWDP+DUL6LQJKDQLD
'LUHFWRU6LWWLQJ)HHVDQG&RPPLVVLRQWR1RQ([HFXWLYH'LUHFWRUV
6KUL*DXWDP+DUL6LQJKDQLD
'U9LMD\SDW6LQJKDQLD
6PW1DZD]*DXWDP6LQJKDQLD
,QFRPH
5HQWDQGRWKHUVHUYLFHFKDUJHV
-.)LOHV,QGLD/LPLWHG
5D\PRQG$SSDUHO/LPLWHG
5R\DOW\
5D\PRQG$SSDUHO/LPLWHG
,QWHUHVW
5D\PRQG$SSDUHO/LPLWHG
-.)LOHV,QGLD/LPLWHG
6LOYHU6SDUN$SSDUHO/LPLWHG
'LYLGHQG
5D\PRQG$SSDUHO/LPLWHG
-.)LOHV,QGLD/LPLWHG
2WKHU5HFHLSWV
'HSXWDWLRQRIVWDII
5D\PRQG$SSDUHO/LPLWHG
5D\PRQG/X[XU\&RWWRQV/LPLWHG
-.+HOHQH&XUWLV/LPLWHG
-.,QYHVWRUV%RPED\/LPLWHG
$GYHUWLVHPHQW5HLPEXUVHPHQWV
5D\PRQG$SSDUHO/LPLWHG
&RORUSOXV)DVKLRQV/LPLWHG
-.,QYHVWRUV%RPED\/LPLWHG
,QYHVWPHQW
5D\PRQG/X[XU\&RWWRQV/LPLWHG
2XWVWDQGLQJV
*XDUDQWHHVJLYHQWREDQNV
(YHUEOXH$SSDUHO/LPLWHG
&HOHEUDWLRQV$SSDUHO/LPLWHG
5D\PRQG(XURSH/LPLWHG
3D\DEOH
-D\ND\RUJ$*
5D\PRQG$SSDUHO/LPLWHG
5D\PRQG/X[XU\&RWWRQV/LPLWHG
-.,QYHVWRUV%RPED\/LPLWHG
6WDQGDORQH)LQDQFLDO6WDWHPHQWV
127(6727+(),1$1&,$/67$7(0(176
5HODWHGSDUW\GLVFORVXUHV&RQWG
`LQODFV
5HFHLYDEOH
6LOYHU6SDUN$SSDUHO/LPLWHG
5D\PRQG8&2'HQLP3ULYDWH/LPLWHG
'LYLGHQG5HFHLYDEOH
5D\PRQG$SSDUHO/LPLWHG
3URSHUW\'HSRVLWUHFHLYDEOH
-.,QYHVWRUV%RPED\/LPLWHG
3URSHUW\'HSRVLWSD\DEOH
5D\PRQG$SSDUHO/LPLWHG
-.,QYHVWRUV%RPED\/LPLWHG
)RU/RDQVDQG$GYDQFHV5HIHU1RWH
,QIRUPDWLRQRQ-RLQW9HQWXUHV
L -RLQWO\FRQWUROOHGHQWLWLHV
6U 1DPHRIWKH-RLQW9HQWXUH &RXQWU\RI 3HUFHQWDJHRI
1R ,QFRUSRUDWLRQ 2ZQHUVKLSLQWHUHVW
5D\PRQG8&2'HQLP3YW/WG ,QGLD
5RVH(QJLQHHUHG 3URGXFW,QGLD3YW/WG ,QGLD
LL &RQWLQJHQW/LDELOLWLHVLQUHVSHFWRI-RLQW9HQWXUHV
`LQODFV
D 'LUHFWO\LQFXUUHGE\WKH&RPSDQ\
E 6KDUHRIWKH&RPSDQ\LQFRQWLQJHQWOLDELOLWLHVZKLFKKDYHEHHQLQFXUUHGMRLQWO\ZLWK
RWKHUYHQWXUHV
F 6KDUH RI WKH &RPSDQ\ LQ FRQWLQJHQW OLDELOLWLHV LQFXUUHG E\ MRLQWO\ FRQWUROOHG HQWLW\
WRWKHH[WHQWDVFHUWDLQDEOH
G 6KDUHRIRWKHUYHQWXUHVLQFRQWLQJHQWOLDELOLWLHVLQFXUUHGE\MRLQWO\FRQWUROOHGHQWLW\
LLL &DSLWDOFRPPLWPHQWVLQUHVSHFWRI-RLQW9HQWXUHV
D 'LUHFW&DSLWDOFRPPLWPHQWVE\WKH&RPSDQ\
E 6KDUH RI WKH &RPSDQ\ LQ FDSLWDO FRPPLWPHQWV ZKLFK KDYH EHHQ LQFXUUHG MRLQWO\
ZLWKRWKHUYHQWXUHV
F 6KDUHRIWKH&RPSDQ\LQFDSLWDOFRPPLWPHQWVRIWKH MRLQWO\FRQWUROOHGHQWLW\
LY ,QWHUHVW LQ WKH DVVHWV OLDELOLWLHV LQFRPH DQG H[SHQVHV ZLWK UHVSHFW WR
MRLQWO\FRQWUROOHGHQWLWLHV
$ $VVHWV
1RQFXUUHQWDVVHWV
D )L[HG$VVHWV1HW%ORFN
L 7DQJLEOHDVVHWV
LL ,QWDQJLEOHDVVHWV
LLL &DSLWDOZRUNLQSURJUHVV
6WDQGDORQH)LQDQFLDO6WDWHPHQWV
127(6727+(),1$1&,$/67$7(0(176
`LQODFV
E /RQJWHUPORDQVDQGDGYDQFHV
F 2WKHUQRQFXUUHQWDVVHWV
&XUUHQWDVVHWV
6WDQGDORQH)LQDQFLDO6WDWHPHQWV
127(6727+(),1$1&,$/67$7(0(176
/RDQVDQGDGYDQFHVLQWKHQDWXUHRIORDQVJLYHQ
`LQODFV
$PRXQWRXWVWDQGLQJ 0D[LPXPEDODQFH 6KDUHVKHOGE\/RDQHH
DVDW GXULQJWKH\HDUHQGHG LQWKH&RPSDQ\
VW0DUFK VW0DUFK
1RRI6KDUHV 0D[LPXP1R
RXWVWDQGLQJDW RI6KDUHVKHOG
WKH\HDUHQG GXULQJWKH\HDU
L 6XEVLGLDULHV
(YHUEOXH$SSDUHO/LPLWHG
-.)LOHV,QGLD/LPLWHG
5D\PRQG$SSDUHO/LPLWHG
6LOYHU6SDUN$SSDUHO/LPLWHG
&HOHEUDWLRQV$SSDUHO/LPLWHG
5LQJ 3OXV $TXD/LPLWHG
&RORUSOXV)DVKLRQV/LPLWHG
)LJXUHVLQEUDFNHWUHODWHWR3UHYLRXV<HDU
'LYHVWPHQWRI6XLW3ODQW
$VSHUWKHWHUPVRIDJUHHPHQWGDWHGWK2FWREHUWKH&RPSDQ\¶V6XLWPDQXIDFWXULQJXQLWDW*DXULELGDQXUZDVEHHQ
WUDQVIHUUHGRQDVOXPSVDOHEDVLVWR6LOYHU6SDUN$SSDUHO/LPLWHG66$/DZKROO\RZQHGVXEVLGLDU\ZHIVW2FWREHUIRU
DWRWDOFRQVLGHUDWLRQRI` ODFV2XWRIWKHWRWDOFRQVLGHUDWLRQDVXPRI` ODFVKDVUHPDLQHGZLWKWKH&RPSDQ\DVDQ
LQWHUHVWEHDULQJORDQWR66$/
5HPXQHUDWLRQWRWKH&KDLUPDQDQG0DQDJLQJ'LUHFWRU&0'
<HDU
)RUWKH\HDUWKH&HQWUDO*RYHUQPHQWYLGHDSSURYDOGDWHGWK-XO\KDVDSSURYHGZDLYHURIH[FHVVUHPXQHUDWLRQ
SDLG WR WKH &KDLUPDQ DQG 0DQDJLQJ 'LUHFWRU RYHU WKH OLPLWV SUHVFULEHG XQGHU 6HFWLRQ UHDG ZLWK 6FKHGXOH ;,,, RI WKH
&RPSDQLHV$FW
,QDFFRUGDQFHZLWK$FFRXQWLQJ6WDQGDUGµ6HJPHQW5HSRUWLQJ¶VHJPHQWLQIRUPDWLRQKDVEHHQJLYHQLQWKHFRQVROLGDWHG
ILQDQFLDO VWDWHPHQWV RI 5D\PRQG /LPLWHG DQG WKHUHIRUH QR VHSDUDWH GLVFORVXUH RQ VHJPHQW LQIRUPDWLRQ LV JLYHQ LQ WKHVH
ILQDQFLDOVWDWHPHQWV
3UHYLRXV<HDU¶VILJXUHVKDYHEHHQUHJURXSHGUHFODVVLILHGZKHUHYHUQHFHVVDU\WRFRUUHVSRQGZLWKWKHFXUUHQW\HDU¶VFODVVLILFDWLRQ
GLVFORVXUH
6LJQLILFDQW DFFRXQWLQJ SROLFLHV DQG SUDFWLFHV DGRSWHG E\ WKH &RPSDQ\ DUH GLVFORVHG LQ WKH VWDWHPHQW DQQH[HG WR WKHVH
ILQDQFLDOVWDWHPHQWV DV$QQH[XUH,
$VSHURXU5HSRUWRIHYHQGDWH
6WDQGDORQH)LQDQFLDO6WDWHPHQWV
127(6727+(),1$1&,$/67$7(0(176
$11(;85(,
67$7(0(172)6,*1,),&$17$&&2817,1*32/,&,(6$1'35$&7,&(6
DQQH[HGWRDQGIRUPLQJSDUWRIWKHILQDQFLDOVWDWHPHQWVIRUWKH\HDUHQGHGVW0DUFK
7KHVHILQDQFLDOVWDWHPHQWVKDYHEHHQSUHSDUHGLQDFFRUGDQFHZLWKWKHJHQHUDOO\DFFHSWHGDFFRXQWLQJSULQFLSOHVLQ,QGLDXQGHU
WKH KLVWRULFDO FRVW FRQYHQWLRQ RQ DFFUXDO EDVLV H[FHSW IRU FHUWDLQ WDQJLEOH DVVHWV ZKLFK DUH EHLQJ FDUULHG DW UHYDOXHG DPRXQWV
3XUVXDQWWRVHFWLRQRIWKH&RPSDQLHV$FWUHDGZLWK5XOHRIWKH&RPSDQLHV$FFRXQWV5XOHVWLOOWKHVWDQGDUGVRI
DFFRXQWLQJRUDQ\DGGHQGXPWKHUHWRDUHSUHVFULEHGE\&HQWUDO*RYHUQPHQWLQFRQVXOWDWLRQDQGUHFRPPHQGDWLRQRIWKH1DWLRQDO
)LQDQFLDO5HSRUWLQJ$XWKRULW\WKHH[LVWLQJ$FFRXQWLQJ6WDQGDUGVQRWLILHGXQGHUWKH&RPSDQLHV$FWVKDOOFRQWLQXHWRDSSO\
&RQVHTXHQWO\ WKHVH ILQDQFLDO VWDWHPHQWV KDYH EHHQ SUHSDUHG WR FRPSO\ LQ DOO PDWHULDO DVSHFWV ZLWK WKH DFFRXQWLQJ VWDQGDUGV
QRWLILHGXQGHU6HFWLRQ&RI&RPSDQLHV$FW>&RPSDQLHV$FFRXQWLQJ6WDQGDUGV5XOHVDVDPHQGHG@DQGRWKHU
UHOHYDQWSURYLVLRQVRIWKH&RPSDQLHV$FW
$OOWKHDVVHWVDQGOLDELOLWLHVKDYHEHHQFODVVLILHGDVFXUUHQWRUQRQFXUUHQWDVSHUWKH&RPSDQ\¶VQRUPDORSHUDWLQJF\FOHDQGRWKHU
FULWHULDVHWRXWLQ6FKHGXOH,,, WRWKH&RPSDQLHV $FW%DVHGRQWKHQDWXUHRISURGXFWVDQGWKHWLPHEHWZHHQWKHDFTXLVLWLRQRI
DVVHWVIRUSURFHVVLQJDQGWKHLUUHDOL]DWLRQLQFDVKDQGFDVKHTXLYDOHQWWKH&RPSDQ\KDVDVFHUWDLQHGLWVRSHUDWLQJF\FOHWREH
PRQWKVIRUWKHSXUSRVHRIFXUUHQWQRQFXUUHQWFODVVLILFDWLRQRIDVVHWVDQGOLDELOLWLHV
, 5(&2*1,7,212),1&20($1'(;3(1',785(
L 5HYHQXHV,QFRPHVDQG&RVWV([SHQGLWXUHDUHJHQHUDOO\DFFRXQWHGRQDFFUXDODVWKH\DUHHDUQHGRULQFXUUHG
LL 6DOHRI*RRGVLVUHFRJQLVHGRQWUDQVIHURIVLJQLILFDQWULVNVDQGUHZDUGVRIRZQHUVKLSZKLFKLVJHQHUDOO\RQWKHGLVSDWFKRI
JRRGV
LLL ³([SRUW,QFHQWLYHVXQGHUWKH³´'XW\(QWLWOHPHQW3DVV%RRN6FKHPH´´³'XW\'UDZEDFN6FKHPH´HWFLVDFFRXQWHGLQ
WKH\HDURIH[SRUW³
,, 86(2)(67,0$7(6
7KHSUHSDUDWLRQRIILQDQFLDOVWDWHPHQWVLQFRQIRUPLW\ZLWKJHQHUDOO\DFFHSWHGDFFRXQWLQJSULQFLSOHVUHTXLUHVHVWLPDWHVDQG
DVVXPSWLRQVWREHPDGHWKDWDIIHFWWKHUHSRUWHGDPRXQWVRIDVVHWVDQGOLDELOLWLHVRQWKHGDWHRIWKHILQDQFLDOVWDWHPHQWVDQG
WKHUHSRUWHGDPRXQWVRIUHYHQXHVDQGH[SHQVHVGXULQJWKHUHSRUWLQJSHULRG 'LIIHUHQFHVEHWZHHQDFWXDOUHVXOWVDQGHVWLPDWHV
DUHUHFRJQLVHGLQWKHSHULRGLQZKLFKWKHUHVXOWVDUHNQRZQPDWHULDOLVHG
,,, ),;('$66(76
7DQJLEOH$VVHWV
7DQJLEOH$VVHWVDUHVWDWHGDWDFTXLVLWLRQFRVWQHWRIDFFXPXODWHGGHSUHFLDWLRQDQGDFFXPXODWHGLPSDLUPHQWORVVHV
6XEVHTXHQWH[SHQGLWXUHVUHODWHGWRDQLWHPRIIL[HGDVVHWDUHDGGHGWRLWVERRNYDOXHRQO\LIWKH\LQFUHDVHWKHIXWXUHEHQHILWV
IURPWKHH[LVWLQJDVVHWEH\RQGLWVSUHYLRXVO\DVVHVVHGVWDQGDUGRISHUIRUPDQFH
,WHPV RI IL[HG DVVHWV WKDW KDYH EHHQ UHWLUHG IURP DFWLYH XVH DQG DUH KHOG IRU GLVSRVDO DUH VWDWHG DW WKH ORZHU RI WKHLU QHW
ERRNYDOXHDQGQHWUHDOLVDEOHYDOXHDQGDUHVKRZQVHSDUDWHO\LQWKHILQDQFLDOVWDWHPHQWV$Q\H[SHFWHGORVVLVUHFRJQLVHG
LPPHGLDWHO\LQWKH6WDWHPHQWRI3URILWDQG/RVV
/RVVHV DULVLQJ IURP WKH UHWLUHPHQW RI DQG JDLQV RU ORVVHV DULVLQJ IURP GLVSRVDO RI IL[HG DVVHWV ZKLFK DUH FDUULHG DW FRVW DUH
UHFRJQLVHGLQWKH6WDWHPHQWRI3URILWDQG/RVV
,QWDQJLEOH$VVHWV
,QWDQJLEOHDVVHWVDUHVWDWHGDWDFTXLVLWLRQFRVWQHWRIDFFXPXODWHGDPRUWL]DWLRQDQGDFFXPXODWHGLPSDLUPHQWORVVHVLIDQ\
,QWDQJLEOHDVVHWVDUHDPRUWLVHGRQDVWUDLJKWOLQHEDVLVRYHUWKHLUHVWLPDWHGXVHIXOOLYHV
*DLQV RU ORVVHV DULVLQJ IURP WKH UHWLUHPHQW RU GLVSRVDO SURFHHGV DQG WKH FDUU\LQJ DPRXQW RI WKH DVVHW DQG UHFRJQLVHG DV
LQFRPHRUH[SHQVHLQWKH6WDWHPHQWRI3URILW /RVV
,9 0(7+2'2)'(35(&,$7,21$1'$0257,6$7,21
L 'HSUHFLDWLRQRQ)DFWRU\%XLOGLQJV3ODQWDQG0DFKLQHU\$LUFUDIWV(OHFWULFDO,QVWDOODWLRQVDQG(TXLSPHQWLVSURYLGHGRQD
6WUDLJKW/LQH0HWKRGDQGLQFDVHRIRWKHUDVVHWVRQ:ULWWHQ'RZQ9DOXH0HWKRGRYHUWKHHVWLPDWHGXVHIXOOLIHRIDVVHWV
LL (IIHFWLYHVW$SULOWKH&RPSDQ\GHSUHFLDWHVLWVIL[HGDVVHWVRYHUWKHXVHIXOOLIHLQWKHPDQQHUSUHVFULEHGLQ6FKHGXOH
,,RIWKH$FWDVDJDLQVWWKHHDUOLHUSUDFWLFHRIGHSUHFLDWLQJDWWKHUDWHVSUHVFULEHGLQ6FKHGXOH;,9RIWKH&RPSDQLHV$FW
LLL %DVHGRQDQLQGHSHQGHQWWHFKQLFDOHYDOXDWLRQWKHXVHIXOOLIHRI3ODQWDQG0DFKLQHU\KDVEHHQHVWLPDWHGDV\HDUV
RQDVLQJOHVKLIWEDVLVZKLFKLVGLIIHUHQWIURPWKDWSUHVFULEHGLQ6FKHGXOH,,RIWKH$FW
LY ,QFDVHRISUHRZQHGDVVHWVWKHXVHIXOOLIHLVHVWLPDWHGRQDFDVHWRFDVHEDVLV
Y &RVWRI7HFKQLFDO.QRZKRZFDSLWDOLVHGLVDPRUWLVHGRYHUDSHULRGRIVL[\HDUVWKHUHRI
YL &RVWRI6RIWZDUHFDSLWDOLVHGLVDPRUWLVHGRYHUDSHULRGRIWKUHH \HDUV
YLL &RVWRI/HDVHKROG/DQGLVDPRUWLVHGRYHUWKHSHULRGRIOHDVH
YLLL 'HSUHFLDWLRQ RQ DGGLWLRQV WR DVVHWV RU RQ VDOHGLVFDUGPHQW RI DVVHWV LV FDOFXODWHG SUR UDWD IURP WKH PRQWK RI VXFK
DGGLWLRQRUXSWRWKHPRQWKRIVXFKVDOHGLVFDUGPHQWDVWKHFDVHPD\EH
6WDQGDORQH)LQDQFLDO6WDWHPHQWV
127(6727+(),1$1&,$/67$7(0(176
9 ,19(670(176
,QYHVWPHQWVWKDWDUHUHDGLO\UHDOLVDEOHDQGDUHLQWHQGHGWREHKHOGIRUQRWPRUHWKDQRQH\HDUIURPWKHGDWHRQZKLFKVXFK
LQYHVWPHQWV DUH PDGH DUH FODVVLILHG DV FXUUHQW LQYHVWPHQWV $OO RWKHU LQYHVWPHQWV DUH FODVVLILHG DV ORQJ WHUP LQYHVWPHQWV
&XUUHQWLQYHVWPHQWVDUHFDUULHGDWFRVWRUIDLUYDOXHZKLFKHYHULVORZHU/RQJWHUPLQYHVWPHQWVDUHFDUULHGDWFRVW+RZHYHU
SURYLVLRQIRUGLPLQXWLRQLVPDGHWRUHFRJQLVHDGHFOLQHRWKHUWKDQWHPSRUDU\LQWKHYDOXHRIWKHLQYHVWPHQWVVXFKUHGXFWLRQ
EHLQJGHWHUPLQHGDQGPDGHIRUHDFKLQYHVWPHQWLQGLYLGXDOO\
9, 9$/8$7,212),19(1725,(6
,QYHQWRULHV RI 5DZ 0DWHULDOV :RUNLQ3URJUHVV 6WRUHV DQG VSDUHV )LQLVKHG *RRGV DQG 6WRFNLQWUDGH DUH VWDWHG µDW FRVW RU
QHW UHDOLVDEOH YDOXH ZKLFKHYHU LV ORZHU¶ *RRGVLQ7UDQVLW DUH VWDWHG µDW FRVW¶ &RVW FRPSULVH DOO FRVW RI SXUFKDVH FRVW RI
FRQYHUVLRQ DQG RWKHU FRVWV LQFXUUHG LQ EULQJLQJ WKH LQYHQWRULHV WR WKHLU SUHVHQW ORFDWLRQ DQG FRQGLWLRQ 7KH H[FLVH GXW\ LQ
UHVSHFWRIFORVLQJLQYHQWRU\RIILQLVKHGJRRGVLVLQFOXGHGDVSDUWRIILQLVKHGJRRGV &RVWIRUPXODHXVHGDUHµ)LUVWLQ)LUVWRXW¶
µ:HLJKWHG$YHUDJHFRVW¶RUµ6SHFLILFLGHQWLILFDWLRQ¶DVDSSOLFDEOH 'XHDOORZDQFHLVHVWLPDWHGDQGPDGHIRUGHIHFWLYHDQG
REVROHWHLWHPVZKHUHYHUQHFHVVDU\EDVHGRQWKHSDVWH[SHULHQFHRIWKH&RPSDQ\
9,, )25(,*1&855(1&<75$16/$7,216
L $OOWUDQVDFWLRQVLQIRUHLJQFXUUHQF\DUHUHFRUGHGDWWKHUDWHVRIH[FKDQJHSUHYDLOLQJRQWKHGDWHVZKHQWKHUHOHYDQW
WUDQVDFWLRQVWDNHSODFH
LL 0RQHWDU\LWHPVLQWKHIRUPRI/RDQV&XUUHQW$VVHWVDQG&XUUHQW/LDELOLWLHVLQIRUHLJQFXUUHQF\RXWVWDQGLQJDWWKHFORVHRI
WKH\HDUDUHFRQYHUWHGLQ,QGLDQ&XUUHQF\DWWKHDSSURSULDWHUDWHVRIH[FKDQJHSUHYDLOLQJRQWKHGDWHRIWKH%DODQFH
6KHHW5HVXOWDQWJDLQRUORVVLVDFFRXQWHGGXULQJWKH\HDU
LLL 7KHSUHPLXPRUGLVFRXQWDULVLQJDWWKHLQFHSWLRQRIIRUZDUGH[FKDQJHFRQWUDFWVHQWHUHGLQWRWRKHGJHDQH[LVWLQJDVVHW
OLDELOLW\LVDPRUWLVHGDVH[SHQVHRULQFRPHRYHUWKHOLIHRIWKHFRQWUDFW([FKDQJHGLIIHUHQFHVRQVXFKDFRQWUDFWDUH
UHFRJQLVHGLQWKH6WDWHPHQWRI3URILWDQG/RVVLQWKHUHSRUWLQJSHULRGLQZKLFKWKHH[FKDQJHUDWHVFKDQJH$Q\SURILWRU
ORVVDULVLQJRQFDQFHOODWLRQRUUHQHZDORIVXFKDIRUZDUGH[FKDQJHFRQWUDFWDUHUHFRJQLVHGDVLQFRPHRUDVH[SHQVHIRU
WKHSHULRG
)RUZDUGH[FKDQJHFRQWUDFWVRXWVWDQGLQJDVDWWKH\HDUHQGRQDFFRXQWRIILUPFRPPLWPHQWKLJKO\SUREDEOHIRUHFDVW
WUDQVDFWLRQVDUHPDUNHGWRPDUNHWDQGWKHORVVHVLIDQ\DUHUHFRJQLVHGLQWKH6WDWHPHQWRI3URILWDQG/RVVDQGJDLQV
DUHLJQRUHGLQDFFRUGDQFHZLWKWKH$QQRXQFHPHQWRI,QVWLWXWHRI&KDUWHUHG$FFRXQWDQWVRI,QGLDRQµ$FFRXQWLQJIRU
'HULYDWLYHV¶LVVXHGLQ0DUFK
LY $OORWKHULQFRPHVRUH[SHQGLWXUHLQIRUHLJQFXUUHQF\DUHUHFRUGHGDWWKHUDWHVRIH[FKDQJHSUHYDLOLQJRQWKHGDWHV
ZKHQWKHUHOHYDQWWUDQVDFWLRQVWDNHSODFH
Y 7UDQVDFWLRQV FRYHUHG E\ FURVV FXUUHQF\ VZDS FRQWUDFWV WR EH VHWWOHG RQ IXWXUH GDWHV DUH UHFRJQLVHG DW WKH UDWHV RI
H[FKDQJHRIWKHXQGHUO\LQJIRUHLJQFXUUHQF\SUHYDLOLQJRQWKHGDWHRIWKH%DODQFH6KHHW (IIHFWVDULVLQJRXWRIVZDS
FRQWUDFWVDUHDFFRXQWHGDGMXVWHGRQWKHGDWHRIVHWWOHPHQW
YL $FFRXQWLQJRIIRUHLJQEUDQFK
D &XUUHQWDVVHWVDQGOLDELOLWLHVDUHFRQYHUWHGDWWKHDSSURSULDWHUDWHVRIH[FKDQJHSUHYDLOLQJRQWKHGDWHRIWKH
%DODQFH6KHHW
E )L[HG$VVHWVDUHFRQYHUWHGDWWKHH[FKDQJHUDWHVSUHYDLOLQJRQWKHGDWHRIWKHWUDQVDFWLRQ
F 5HYHQXHLWHPVH[FHSWGHSUHFLDWLRQDUHFRQYHUWHGDWPRQWKO\DYHUDJHUDWHVRIH[FKDQJH
G 'HSUHFLDWLRQKDVEHHQWUDQVODWHGDWWKHH[FKDQJHUDWHVXVHGIRUWKHFRQYHUVLRQRIUHVSHFWLYHIL[HGDVVHWV
9,,, (03/2<((%(1(),76
³'HILQHG &RQWULEXWLRQ 3ODQV VXFK DV 3URYLGHQW )XQG HWF DUH FKDUJHG WR WKH 3URILW DQG /RVV $FFRXQW DV LQFXUUHG
'HILQHG%HQHILW3ODQV7KHSUHVHQWYDOXHRIWKHREOLJDWLRQXQGHUVXFKSODQLVGHWHUPLQHGEDVHGRQDQDFWXDULDOYDOXDWLRQ
XVLQJ WKH 3URMHFWHG 8QLW &UHGLW 0HWKRG $FWXDULDO JDLQV DQG ORVVHV DULVLQJ RQ VXFK YDOXDWLRQ DUH UHFRJQLVHG LPPHGLDWHO\
LQ WKH 3URILW DQG /RVV $FFRXQW ,Q FDVH RI IXQGHG GHILQHG EHQHILW SODQV WKH IDLU YDOXH RI WKH SODQ DVVHWV LV UHGXFHG
IURP WKH JURVV REOLJDWLRQ XQGHU WKH GHILQHG EHQHILW SODQV WR UHFRJQLVH WKH REOLJDWLRQ RQ QHW EDVLV )XUWKHU IRU FHUWDLQ
HPSOR\HHV WKH PRQWKO\ FRQWULEXWLRQ IRU 3URYLGHQW )XQG LV PDGH WR D 7UXVW DGPLQLVWHUHG E\ WKH &RPSDQ\ 7KH LQWHUHVW
SD\DEOH E\ WKH 7UXVW LV QRWLILHG E\ WKH *RYHUQPHQW 7KH &RPSDQ\ KDV DQ REOLJDWLRQ WR PDNH JRRG WKH VKRUWIDOO LI DQ\
2WKHU /RQJ WHUP (PSOR\HH %HQHILWV DUH UHFRJQLVHG LQ WKH VDPH PDQQHU DV 'HILQHG %HQHILW 3ODQV 7HUPLQDWLRQ EHQHILWV DUH
UHFRJQLVHGDVDQGZKHQLQFXUUHG+RZHYHUWKHWHUPLQDWLRQEHQHILWVZKLFKIDOOGXHPRUHWKDQWZHOYHPRQWKVDIWHUWKH%DODQFH
6KHHWGDWHDUHGLVFRXQWHGXVLQJWKH\LHOGRQ*RYHUQPHQW%RQGV´
,; 352-(&7'(9(/230(17(;3(16(63(1',1*$'-8670(17
([SHQGLWXUH LQFXUUHG GXULQJ GHYHORSPHQWDO DQG SUHOLPLQDU\ VWDJHV RI WKH &RPSDQ\¶V QHZ SURMHFWV DUH FDUULHG IRUZDUG
+RZHYHU LI DQ\ SURMHFW LV DEDQGRQHG WKH H[SHQGLWXUH UHOHYDQW WR VXFK SURMHFW LV ZULWWHQ RII WKURXJK WKH QDWXUDO KHDGV RI
H[SHQVHVLQWKH\HDULQZKLFKLWLVVRDEDQGRQHG
6WDQGDORQH)LQDQFLDO6WDWHPHQWV
127(6727+(),1$1&,$/67$7(0(176
; %2552:,1*&2676
,QWHUHVW DQG RWKHU ERUURZLQJ FRVWV DWWULEXWDEOH WR TXDOLI\LQJ DVVHWV DUH FDSLWDOLVHG 2WKHU LQWHUHVW DQG ERUURZLQJ FRVWV DUH
FKDUJHGWRUHYHQXH
;, *29(510(17*5$176
*UDQWV UHFHLYHG DJDLQVW VSHFLILF IL[HG DVVHWV DUH DGMXVWHG WR WKH FRVW RI WKH DVVHWV DQG WKRVH LQ WKH QDWXUH RI SURPRWHU¶V
FRQWULEXWLRQDUHFUHGLWHGWR&DSLWDO5HVHUYH5HYHQXH*UDQWVDUHUHFRJQLVHGLQWKH3URILWDQG/RVV$FFRXQWLQDFFRUGDQFH
ZLWKWKHUHODWHGVFKHPHDQGLQWKHSHULRGLQZKLFKWKHVHDUHDFFUXHG
;,, 3529,6,216&217,1*(17/,$%,/,7,(6$1'&217,*(17$66(76
3URYLVLRQV 3URYLVLRQV DUH UHFRJQLVHG ZKHQ WKHUH LV D SUHVHQW REOLJDWLRQ DV D UHVXOW RI D SDVW HYHQW LW LV SUREDEOH WKDW DQ
RXWIORZRIUHVRXUFHVHPERG\LQJHFRQRPLFEHQHILWVZLOOEHUHTXLUHGWRVHWWOHWKHREOLJDWLRQDQGWKHUHLVDUHOLDEOHHVWLPDWHRI
WKHDPRXQWRIWKHREOLJDWLRQ3URYLVLRQVDUHPHDVXUHGDWWKHEHVWHVWLPDWHRIWKHH[SHQGLWXUHUHTXLUHGWRVHWWOHWKHSUHVHQW
REOLJDWLRQDWWKH%DODQFHVKHHWGDWHDQGDUHQRWGLVFRXQWHGWRLWVSUHVHQWYDOXH
&RQWLQJHQW /LDELOLWLHV &RQWLQJHQW OLDELOLWLHV DUH GLVFORVHG ZKHQ WKHUH LV D SRVVLEOH REOLJDWLRQ DULVLQJ IURP SDVW HYHQWV WKH
H[LVWHQFHRIZKLFKZLOOEHFRQILUPHGRQO\E\WKHRFFXUUHQFHRUQRQRFFXUUHQFHRIRQHRUPRUHXQFHUWDLQIXWXUHHYHQWVQRW
ZKROO\ZLWKLQWKHFRQWURORIWKHFRPSDQ\RUDSUHVHQWREOLJDWLRQWKDWDULVHVIURPSDVWHYHQWVZKHUHLWLVHLWKHUQRWSUREDEOHWKDW
DQRXWIORZRIUHVRXUFHVZLOOEHUHTXLUHGWRVHWWOHRUDUHOLDEOHHVWLPDWHRIWKHDPRXQWFDQQRWEHPDGH
&RQWLQJHQW$VVHWV&RQWLQJHQW$VVHWVDUHQHLWKHUUHFRJQLVHGRUGLVFORVHGLQWKHILQDQFLDOVWDWHPHQWV
;,,, $33/,&$7,212)6(&85,7,(635(0,80$&&2817
6KDUHDQG'HEHQWXUH,VVXHH[SHQVHVDQG3UHPLXPSD\DEOHRQUHGHPSWLRQRI'HEHQWXUHVDUHFKDUJHGILUVWDJDLQVWDYDLODEOH
EDODQFHLQ6HFXULWLHV3UHPLXP$FFRXQW
;,9 7$;$7,21
,QFRPHWD[H[SHQVHFRPSULVHVFXUUHQWWD[DQGGHIHUUHGWD[FKDUJHRUFUHGLW3URYLVLRQIRUFXUUHQWWD[LVPDGHRQWKHEDVLV
RIWKHDVVHVVDEOHLQFRPHDWWKHWD[UDWHDSSOLFDEOHWRWKHUHOHYDQWDVVHVVPHQW\HDU7KHGHIHUUHGWD[DVVHWDQGGHIHUUHGWD[
OLDELOLW\LVFDOFXODWHGE\DSSO\LQJWD[UDWHDQGWD[ODZVWKDWKDYHEHHQHQDFWHGRUVXEVWDQWLYHO\HQDFWHGE\WKH%DODQFH6KHHW
GDWH 'HIHUUHGWD[DVVHWVDULVLQJPDLQO\RQDFFRXQWRIEURXJKWIRUZDUGORVVHVDQGXQDEVRUEHGGHSUHFLDWLRQXQGHUWD[ODZV
DUHUHFRJQLVHGRQO\LIWKHUHLVDYLUWXDOFHUWDLQW\RILWVUHDOLVDWLRQVXSSRUWHGE\FRQYLQFLQJHYLGHQFH'HIHUUHGWD[DVVHWVRQ
DFFRXQWRIRWKHUWLPLQJGLIIHUHQFHVDUHUHFRJQLVHGRQO\WRWKHH[WDQWWKHUHLVDUHDVRQDEOHFHUWDLQW\RILWVUHDOLVDWLRQ$WHDFK
%DODQFH6KHHWGDWHWKHFDUU\LQJDPRXQWRIGHIHUUHGWD[DVVHWVDUHUHYLHZHGWRUHDVVXUHUHDOLVDWLRQ0LQLPXP$OWHUQDWLYH7D[
FUHGLW0$7&UHGLWLVUHFRJQLVHGDVDQDVVHWRQO\ZKHQDQGWRWKHH[WDQWWKHUHLVFRQYLQFLQJHYLGHQFHWKDWWKH&RPSDQ\ZLOO
SD\QRUPDOWD[GXULQJWKHVSHFLILHGSHULRG6XFKDVVHWLVUHYLHZHGDWHDFK%DODQFH6KHHWGDWHDQGWKHFDUU\LQJDPRXQWRI
WKH0$7FUHGLWDVVHWLVZULWWHQGRZQWRWKHH[WHQWWKHUHLVQRORQJHUDFRQYLQFLQJHYLGHQFHWRWKHHIIHFWWKDWWKH&RPSDQ\ZLOO
SD\QRUPDOLQFRPHWD[GXULQJWKHVSHFLILHGSHULRG
;9 ,03$,50(172)$66(76
7KH FDUU\LQJ DPRXQWV RI DVVHWV DUH UHYLHZHG DW HDFK %DODQFH 6KHHW GDWH LI WKHUH LV DQ\ LQGLFDWLRQ RI LPSDLUPHQW EDVHG
RQLQWHUQDOH[WHUQDOIDFWRUV$QDVVHWLVLPSDLUHGZKHQWKHFDUU\LQJDPRXQWRIWKHDVVHWH[FHHGVWKHUHFRYHUDEOHDPRXQW
$QLPSDLUPHQWORVVLVFKDUJHGWRWKH6WDWHPHQWRI3URILWDQG/RVVLQWKH\HDULQZKLFKDQDVVHWLVLGHQWLILHGDVLPSDLUHG$Q
LPSDLUPHQWORVVUHFRJQLVHGLQSULRUDFFRXQWLQJSHULRGVLVUHYHUVHGLIWKHUHKDVEHHQFKDQJHLQWKHHVWLPDWHRIWKHUHFRYHUDEOH
DPRXQW
;9, /($6(
$VDOHVVHH
/HDVHVLQZKLFKDVLJQLILFDQWSRUWLRQRIWKHULVNVDQGUHZDUGVRIRZQHUVKLSDUHUHWDLQHGE\WKHOHVVRUDUHFODVVLILHGDVRSHUDWLQJ
OHDVHV3D\PHQWVPDGHXQGHURSHUDWLQJOHDVHVDUHFKDUJHGWRWKH6WDWHPHQWRI3URILWDQG/RVVRQDVWUDLJKWOLQHEDVLVRYHUWKH
SHULRGRIWKHOHDVHRURWKHUV\VWHPDWLFEDVLVPRUHUHSUHVHQWDWLYHRIWKHWLPHSDWWHUQRIWKHXVHU¶VEHQHILWV
$VDOHVVRU
7KH&RPSDQ\KDVOHDVHGFHUWDLQWDQJLEOHDVVHWVDQGVXFKOHDVHVZKHUHWKH&RPSDQ\KDVVXEVWDQWLDOO\UHWDLQHGDOOWKHULVNV
DQGUHZDUGVRIRZQHUVKLSDUHFODVVLILHGDVRSHUDWLQJOHDVHV/HDVHLQFRPHRQVXFKRSHUDWLQJOHDVHVDUHUHFRJQLVHGLQWKH
6WDWHPHQWRI3URILWDQG/RVVRQDVWUDLJKWOLQHEDVLVRYHUWKHOHDVHWHUPRURWKHUV\VWHPDWLFEDVLVRYHUWKHOHDVHWHUPZKLFKLV
PRUHUHSUHVHQWDWLYHRIWKHWLPHSDWWHUQLQZKLFKEHQHILWGHULYHGIURPWKHXVHRIWKHOHDVHGDVVHWLVGLPLQLVKHG,QLWLDOGLUHFW
FRVWVDUHUHFRJQLVHGDVDQH[SHQVHLQWKH6WDWHPHQWRI3URILWDQG/RVVLQWKHSHULRGLQZKLFKWKH\DUHLQFXUUHG
;9,, ($51,1*63(56+$5(
%DVLFHDUQLQJVSHUVKDUHLVFDOFXODWHGE\GLYLGLQJWKHQHWSURILWRUORVVIRUWKHSHULRGDWWULEXWDEOHWRHTXLW\VKDUHKROGHUVE\WKH
ZHLJKWHGDYHUDJHQXPEHURIHTXLW\VKDUHVRXWVWDQGLQJGXULQJWKHSHULRG(DUQLQJVFRQVLGHUHGLQDVFHUWDLQLQJWKH&RPSDQ\¶V
HDUQLQJVSHUVKDUHLVWKHQHWSURILWIRUWKHSHULRG7KHZHLJKWHGDYHUDJHQXPEHURIHTXLW\VKDUHVRXWVWDQGLQJGXULQJWKHSHULRG
DQGIRUDOOSHULRGVSUHVHQWHGLVDGMXVWHGIRUHYHQWVVXFKDVERQXVVKDUHVRWKHUWKDQWKHFRQYHUVLRQRISRWHQWLDOHTXLW\VKDUHV
WKDWKDYHFKDQJHGWKHQXPEHURIHTXLW\VKDUHVRXWVWDQGLQJZLWKRXWDFRUUHVSRQGLQJFKDQJHLQUHVRXUFHV)RUWKHSXUSRVHRI
FDOFXODWLQJGLOXWHGHDUQLQJVSHUVKDUHWKHQHWSURILWRUORVVIRUWKHSHULRGDWWULEXWDEOHWRHTXLW\VKDUHKROGHUVDQGWKHZHLJKWHG
DYHUDJHQXPEHURIVKDUHVRXWVWDQGLQJGXULQJWKHSHULRGLVDGMXVWHGIRUWKHHIIHFWVRIDOOGLOXWLYHSRWHQWLDOHTXLW\VKDUHV
6WDQGDORQH)LQDQFLDO6WDWHPHQWV
,1'(3(1'(17$8',725¶65(3257
727+(0(0%(562)5$<021'/,0,7('
5(3257217+(),1$1&,$/67$7(0(176
7RWKH%RDUGRI'LUHFWRUVRI5D\PRQG/LPLWHG
:HKDYHDXGLWHGWKHDFFRPSDQ\LQJFRQVROLGDWHGILQDQFLDOVWDWHPHQWVWKH³&RQVROLGDWHG)LQDQFLDO6WDWHPHQWV´RI5D\PRQG
/LPLWHG³WKH&RPSDQ\´LWVVXEVLGLDULHVLWVMRLQWO\FRQWUROOHGHQWLWLHVDQGDVVRFLDWHFRPSDQLHVKHUHLQDIWHUUHIHUUHGWRDVWKH
³*URXS´UHIHU1RWH>@WRWKHDWWDFKHGFRQVROLGDWHGILQDQFLDOVWDWHPHQWVZKLFKFRPSULVHWKHFRQVROLGDWHG%DODQFH6KHHWDV
DW0DUFKWKHFRQVROLGDWHG6WDWHPHQWRI3URILWDQG/RVVWKHFRQVROLGDWHG&DVK)ORZ6WDWHPHQWIRUWKH\HDUWKHQHQGHG
DQGDVXPPDU\RIVLJQLILFDQWDFFRXQWLQJSROLFLHVDQGRWKHUH[SODQDWRU\LQIRUPDWLRQ
0DQDJHPHQW¶V5HVSRQVLELOLW\IRUWKH&RQVROLGDWHG)LQDQFLDO6WDWHPHQWV
7KH&RPSDQ\¶V%RDUGRI'LUHFWRUVLVUHVSRQVLEOHIRUWKHPDWWHUVVWDWHGLQ6HFWLRQRIWKH&RPSDQLHV$FWWKH³$FW´
ZLWK UHVSHFW WR WKH SUHSDUDWLRQ RI WKHVH FRQVROLGDWHG ILQDQFLDO VWDWHPHQWV WR JLYH D WUXH DQG IDLU YLHZ RI WKH FRQVROLGDWHG
ILQDQFLDOSRVLWLRQFRQVROLGDWHGILQDQFLDOSHUIRUPDQFHDQGFRQVROLGDWHGFDVKIORZVRIWKH*URXSLQDFFRUGDQFHZLWKDFFRXQWLQJ
SULQFLSOHVJHQHUDOO\DFFHSWHGLQ,QGLDLQFOXGLQJWKH$FFRXQWLQJ6WDQGDUGVVSHFLILHGXQGHU6HFWLRQRIWKH$FWUHDGZLWK
5XOHRIWKH&RPSDQLHV$FFRXQWV5XOHV7KLVUH?VSRQVLELOLW\LQFOXGHVWKHGHVLJQLPSOHPHQWDWLRQDQGPDLQWHQDQFHRI
LQWHUQDOFRQWUROUHOHYDQWWRWKHSUHSDUDWLRQDQGSUHVHQWDWLRQRIWKHFRQVROLGDWHGILQDQFLDOVWDWHPHQWVWKDWJLYHDWUXHDQGIDLU
YLHZDQGDUHIUHHIURPPDWHULDOPLVVWDWHPHQWZKHWKHUGXHWRIUDXGRUHUURU
$XGLWRUV¶5HVSRQVLELOLW\
2XUUHVSRQVLELOLW\LVWRH[SUHVVDQRSLQLRQRQWKHVHFRQVROLGDWHGILQDQFLDOVWDWHPHQWVEDVHGRQRXUDXGLW
:HFRQGXFWHGRXUDXGLWLQDFFRUGDQFHZLWKWKH6WDQGDUGVRQ$XGLWLQJDQGRWKHUDSSOLFDEOHDXWKRULWDWLYHSURQRXQFHPHQWV
LVVXHGE\WKH,QVWLWXWHRI&KDUWHUHG$FFRXQWDQWVRI,QGLD7KRVH6WDQGDUGVDQGSURQRXQFHPHQWVUHTXLUHWKDWZHFRPSO\ZLWK
HWKLFDOUHTXLUHPHQWVDQGSODQDQGSHUIRUPWKHDXGLWWRREWDLQUHDVRQDEOHDVVXUDQFHDERXWZKHWKHUWKHFRQVROLGDWHGILQDQFLDO
VWDWHPHQWVDUHIUHHIURPPDWHULDOPLVVWDWHPHQW
$Q DXGLW LQYROYHV SHUIRUPLQJ SURFHGXUHV WR REWDLQ DXGLW HYLGHQFH DERXW WKH DPRXQWV DQG GLVFORVXUHV LQ WKH FRQVROLGDWHG
ILQDQFLDO VWDWHPHQWV 7KH SURFHGXUHV VHOHFWHG GHSHQG RQ WKH DXGLWRUV¶ MXGJHPHQW LQFOXGLQJ WKH DVVHVVPHQW RI WKH ULVNV RI
PDWHULDOPLVVWDWHPHQWRIWKHFRQVROLGDWHGILQDQFLDOVWDWHPHQWVZKHWKHUGXHWRIUDXGRUHUURU,QPDNLQJWKRVHULVNDVVHVVPHQWV
WKHDXGLWRUFRQVLGHUVLQWHUQDOFRQWUROUHOHYDQWWRWKH&RPSDQ\¶VSUHSDUDWLRQDQGSUHVHQWDWLRQRIWKHFRQVROLGDWHGILQDQFLDO
VWDWHPHQWVWKDWJLYHDWUXHDQGIDLUYLHZLQRUGHUWRGHVLJQDXGLWSURFHGXUHVWKDWDUHDSSURSULDWHLQWKHFLUFXPVWDQFHVEXWQRW
IRUWKHSXUSRVHRIH[SUHVVLQJDQRSLQLRQRQWKHHIIHFWLYHQHVVRIWKHHQWLW\¶VLQWHUQDOFRQWURO$QDXGLWDOVRLQFOXGHVHYDOXDWLQJ
WKHDSSURSULDWHQHVVRIDFFRXQWLQJSROLFLHVXVHGDQGWKHUHDVRQDEOHQHVVRIWKHDFFRXQWLQJHVWLPDWHVPDGHE\WKH&RPSDQ\¶V
'LUHFWRUVDVZHOODVHYDOXDWLQJWKHRYHUDOOSUHVHQWDWLRQRIWKHFRQVROLGDWHGILQDQFLDOVWDWHPHQWV
:HEHOLHYHWKDWWKHDXGLWHYLGHQFHZHKDYHREWDLQHGLVVXIILFLHQWDQGDSSURSULDWHWRSURYLGHDEDVLVIRURXUDXGLWRSLQLRQRQ
WKHFRQVROLGDWHGILQDQFLDOVWDWHPHQWV
2SLQLRQ
:HUHSRUWWKDWWKHFRQVROLGDWHGILQDQFLDOVWDWHPHQWVKDYHEHHQSUHSDUHGE\WKH&RPSDQ\¶V0DQDJHPHQWLQDFFRUGDQFH
ZLWK WKH UHTXLUHPHQWV RI $FFRXQWLQJ 6WDQGDUG $6 ă &RQVROLGDWHG )LQDQFLDO 6WDWHPHQWV $FFRXQWLQJ 6WDQGDUG $6 ă
$FFRXQWLQJIRU,QYHVWPHQWVLQ$VVRFLDWHVLQ&RQVROLGDWHG)LQDQFLDO6WDWHPHQWVDQG$FFRXQWLQJ6WDQGDUG$6ă)LQDQFLDO
5HSRUWLQJRI,QWHUHVWVLQ-RLQW9HQWXUHVVSHFLILHGXQGHU6HFWLRQRIWKH$FWUHDGZLWK5XOHRIWKH&RPSDQLHV$FFRXQWV
5XOHV
%DVHGRQRXUDXGLWDQGRQFRQVLGHUDWLRQRIUHSRUWVRIRWKHUDXGLWRUVRQVHSDUDWHILQDQFLDOVWDWHPHQWVDQGRQWKHRWKHUILQDQFLDO
LQIRUPDWLRQ RI WKH FRPSRQHQWV RI WKH *URXS DV UHIHUUHG WR LQ SDUDJUDSK EHORZ DQG WR WKH EHVW RI RXU LQIRUPDWLRQ DQG
DFFRUGLQJWRWKHH[SODQDWLRQVJLYHQWRXVLQRXURSLQLRQWKHDIRUHVDLGFRQVROLGDWHGILQDQFLDOVWDWHPHQWVJLYHDWUXHDQGIDLU
YLHZLQFRQIRUPLW\ZLWKWKHDFFRXQWLQJSULQFLSOHVJHQHUDOO\DFFHSWHGLQ,QGLDRIWKHVWDWHRIDIIDLUVRIWKH*URXSDVDW0DUFK
DQGLWVFRQVROLGDWHGSURILWDQGLWVFRQVROLGDWHGFDVKIORZVIRUWKH\HDUHQGHGRQWKDWGDWH
2WKHU0DWWHU
:HGLGQRWDXGLWWKHILQDQFLDOVWDWHPHQWVRILVL[VXEVLGLDULHVDQGWKUHHMRLQWO\FRQWUROOHGHQWLWLHVLQFOXGHGLQWKHFRQVROLGDWHG
ILQDQFLDOVWDWHPHQWVZKLFKFRQVWLWXWHWRWDODVVHWVRI` ODFVDQGQHWDVVHWVRI` ODFVDVDW0DUFKWRWDO
UHYHQXHRI` ODFVQHWORVVRI` ODFVDQGQHWFDVKRXWIORZVDPRXQWLQJWR` ODFVIRUWKH\HDUWKHQHQGHGDQG
LLIRXUDVVRFLDWHFRPSDQLHVZKLFKFRQVWLWXWHQHWSURILWRI` ODFVIRUWKH\HDUWKHQHQGHG7KHVHILQDQFLDOVWDWHPHQWVDQG
RWKHUILQDQFLDOLQIRUPDWLRQKDYHEHHQDXGLWHGE\RWKHUDXGLWRUVZKRVHUHSRUWVKDYHEHHQIXUQLVKHGWRXVDQGRXURSLQLRQRQ
WKHFRQVROLGDWHGILQDQFLDOVWDWHPHQWVWRWKHH[WHQWWKH\KDYHEHHQGHULYHGIURPVXFKILQDQFLDOVWDWHPHQWVLVEDVHGVROHO\RQ
WKHUHSRUWRIVXFKRWKHUDXGLWRUV2XURSLQLRQLVQRWTXDOLILHGLQUHVSHFWRIWKLVPDWWHU
)RU'DODO 6KDK
&KDUWHUHG$FFRXQWDQWV
)LUP5HJLVWUDWLRQ1XPEHU:
$QLVK3$PLQ
3DUWQHU
0XPEDL$SULO 0HPEHUVKLS1XPEHU
&RQVROLGDWHG)LQDQFLDO6WDWHPHQWV
&2162/,'$7('%$/$1&(6+((7$6$7670$5&+
`LQ/DFV
3DUWLFXODUV 1RWH $VDW $VDW
1R VW0DUFK VW0DUFK
, (48,7<$1'/,$%,/,7,(6
6KDUHKROGHUV¶IXQGV
D 6KDUHFDSLWDO
E 5HVHUYHVDQGVXUSOXV
0LQRULW\,QWHUHVW
1RQFXUUHQWOLDELOLWLHV
D /RQJWHUPERUURZLQJV
E 'HIHUUHGWD[OLDELOLWLHV1HW $
F 2WKHU/RQJWHUPOLDELOLWLHV
&XUUHQWOLDELOLWLHV
D 6KRUWWHUPERUURZLQJV
E 7UDGHSD\DEOHV
F 2WKHUFXUUHQWOLDELOLWLHV
G 6KRUWWHUPSURYLVLRQV
727$/
,, $66(76
1RQFXUUHQWDVVHWV
D )L[HGDVVHWV
L7DQJLEOHDVVHWV
LL,QWDQJLEOHDVVHWV
LLL&DSLWDOZRUNLQSURJUHVV
E 1RQFXUUHQWLQYHVWPHQWV
F 'HIHUUHGWD[DVVHWVQHW %
G /RQJWHUPORDQVDQGDGYDQFHV
H 2WKHUQRQFXUUHQWDVVHWV
&XUUHQWDVVHWV
D &XUUHQWLQYHVWPHQWV
E ,QYHQWRULHV
F 7UDGHUHFHLYDEOHV
G &DVKDQG%DQN%DODQFHV
H 6KRUWWHUPORDQVDQGDGYDQFHV
I 2WKHUFXUUHQWDVVHWV
727$/
*HQHUDO,QIRUPDWLRQ
1RWHVIRUPDQLQWHUJUDOSDUWRIWKHVHFRQVROLGDWHGILQDQFLDOVWDWHPHQWV
$VSHURXU5HSRUWRIHYHQGDWH
0XPEDLWK$SULO 0XPEDLWK$SULO
&RQVROLGDWHG)LQDQFLDO6WDWHPHQWV
&2162/,'$7('67$7(0(172)352),7$1'/266)257+(<($5(1'('670$5&+
`LQ/DFV
3DUWLFXODUV 1RWH <HDUHQGHG <HDUHQGHG
1R VW0DUFK VW0DUFK
, 5HYHQXHIURPRSHUDWLRQVJURVV
/HVV([FLVH'XW\
,, 2WKHU,QFRPH
,,, 7RWDO5HYHQXH,,,
,9 ([SHQVHV
&RVWRIPDWHULDOVFRQVXPHG
3XUFKDVHVRI6WRFNLQ7UDGH
0DQXIDFWXULQJDQG2SHUDWLQJ&RVWV
&KDQJHVLQLQYHQWRULHVRIILQLVKHGJRRGVZRUNLQSURJUHVVDQG
6WRFNLQ7UDGH
(PSOR\HHEHQHILWVH[SHQVH
)LQDQFHFRVWV
'HSUHFLDWLRQDQGDPRUWL]DWLRQH[SHQVH
2WKHUH[SHQVHV
7RWDOH[SHQVHV
9 3URILWEHIRUHH[FHSWLRQDOLWHPVDQGWD[,,,,9
9, ([FHSWLRQDOLWHPV1HW
9,, 3URILWEHIRUHWD[99,
9,,, 7D[H[SHQVH
&XUUHQWWD[
0$7FUHGLWXWLOLVHGQHW
'HIHUUHGWD[QHW
7D[LQUHVSHFWRIHDUOLHU\HDUV
,; 3URILWDIWHUWD[EHIRUHVKDUHLQSURILWRI
DVVRFLDWHVDQGPLQRULW\LQWHUHVW9,,9,,,
/HVV0LQRULW\,QWHUHVW
$GG6KDUHLQ3URILWRI$VVRFLDWHV
; 3URILWIRUWKH\HDU
(DUQLQJVSHUHTXLW\VKDUHRI`HDFK
%DVLF`
'LOXWHG`
:HLJKWHGDYHUDJHQXPEHURIVKDUHVRXWVWDQGLQJ
*HQHUDO,QIRUPDWLRQ
1RWHVIRUPDQLQWHUJUDOSDUWRIWKHVHFRQVROLGDWHGILQDQFLDOVWDWHPHQWV
$VSHURXU5HSRUWRIHYHQGDWH
0XPEDLWK$SULO 0XPEDLWK$SULO
&RQVROLGDWHG)LQDQFLDO6WDWHPHQWV
&2162/,'$7('&$6+)/2:67$7(0(17)257+(<($5(1'('670$5&+
`LQODFV
<HDU(QGHG <HDU(QGHG
VW0DUFK VW0DUFK
$ &DVK)ORZDULVLQJIURP2SHUDWLQJ$FWLYLWLHV
1HW3URILWEHIRUH7D[DQG([FHSWLRQDOLWHPVDVSHU6WDWHPHQWRI3URILWDQG/RVV
$GG'HGXFW
D 3URYLVLRQ IRU 'RXEWIXO 'HEWV %DG 'HEWV $GYDQFHV &ODLPV DQG 'HSRVLWV ZULWWHQ
RII1HW
E 3URYLVLRQQRORQJHUUHTXLUHG
F 3URYLVLRQIRU'LPLQXWLRQLQYDOXHRI,QYHVWPHQWV
G 'HSUHFLDWLRQDQG$PRUWLVDWLRQ([SHQVH
H *DLQ/RVVRQVDOHRI$VVHWV
I )LQDQFH&RVWV
J ,QWHUHVW,QFRPH
K 'LYLGHQG,QFRPH
L 6XUSOXVRQVDOHRI,QYHVWPHQWV
2SHUDWLQJ&DVK3URILWEHIRUH:RUNLQJ&DSLWDO&KDQJHV
$GG'HGXFW
D ,QFUHDVHLQ7UDGHDQG2WKHU3D\DEOHV
E ,QFUHDVHLQ7UDGHDQG2WKHU5HFHLYDEOHV
F ,QFUHDVHLQ,QYHQWRULHV
&DVK,QIORZIURP2SHUDWLRQV
'HGXFW
'LUHFW7D[HV5HIXQGV1HW
1HW&DVK,QIORZLQWKHFRXUVHRI2SHUDWLQJ$FWLYLWLHV
'HGXFW([FHSWLRQDO,WHPV1HW
1HW&DVK,QIORZLQWKHFRXUVHRI2SHUDWLQJ$FWLYLWLHVDIWHUH[FHSWLRQDOLWHPV
% &DVK)ORZDULVLQJIURP,QYHVWLQJ$FWLYLWLHV
,QIORZ
D 6DOHRI)L[HG$VVHWV
E ,QWHUHVW5HFHLYHG
F 'LYLGHQG5HFHLYHG
G 6DOHRI1RQ&XUUUHQW,QYHVWPHQWV
H 6DOHRI&XUUHQW,QYHVWPHQWV1HW
2XWIORZ
D $FTXLVLWLRQRI)L[HG$VVHWV
E $FTXLVLWLRQRI0LQRULW\,QWHUHVW
F 3XUFKDVHRIRWKHU/RQJ7HUP,QYHVWPHQWV
1HW&DVK2XWIORZLQWKHFRXUVHRI,QYHVWLQJ$FWLYLWLHV
& &DVK)ORZDULVLQJIURP)LQDQFLQJ$FWLYLWLHV
,QIORZ
D 3URFHHGVIURP/RQJ7HUP/RDQV1HW
E 3URFHHGVIURPRWKHU%RUURZLQJV1HW
2XWIORZ
D 5HSD\PHQWRI%RUURZLQJV1HW
E 5HSD\PHQWRIRWKHU%RUURZLQJV1HW
F )LQDQFH&KDUJHV1HW
G 'LYLGHQG3DLG
H 7D[RQGLYLGHQG
1HW&DVK2XWIORZLQWKHFRXUVHRI)LQDQFLQJ$FWLYLWLHV
' &KDQJHLQ&XUUHQF\)OXFWXDWLRQ5HVHUYHDULVLQJRQFRQVROLGDWLRQ
1HW,QFUHDVHLQ&DVKDQG&DVK(TXLYDOHQWV$%&
$GG%DODQFHDWWKHEHJLQQLQJRIWKH\HDU
$GG&DVKDQG&DVK(TXLYDOHQWVWUDQVIHUUHGXSRQ$FTXLVLWLRQRIVXEVLGLDU\
&DVKDQG&DVK(TXLYDOHQWVDWWKHFORVHRIWKH\HDU5HIHU1RWH
$VSHURXU5HSRUWRIHYHQGDWH
0XPEDLWK$SULO 0XPEDLWK$SULO
&RQVROLGDWHG)LQDQFLDO6WDWHPHQWV
127(6727+(&2162/,'$7('),1$1&,$/67$7(0(176
127(
*HQHUDO,QIRUPDWLRQ
7KHFRQVROLGDWHG)LQDQFLDO6WDWHPHQWVSUHVHQWWKHFRQVROLGDWHG$FFRXQWVRI5D\PRQG/LPLWHGZLWKLWVIROORZLQJ6XEVLGLDULHV
-RLQW9HQWXUHVDQGLWVVXEVLGLDULHVDQG-RLQW9HQWXUHV$VVRFLDWHVDQGLW¶V6XEVLGLDULHVDQG-RLQW9HQWXUHV
&RQVROLGDWHG)LQDQFLDO6WDWHPHQWV
127(6727+(&2162/,'$7('),1$1&,$/67$7(0(176
& $VVRFLDWHVDQGWKHLU6XEVLGLDU\DQG-RLQW9HQWXUH(IIHFWLYH+ROGLQJV
D 37-D\ND\)LOHV,QGRQHVLD
,QGRQHVLD
E -.,QYHVWR7UDGH,QGLD/LPLWHGDQGLWV
VXEVLGLDULHVDQG-RLQW9HQWXUHV
-.+HOHQH&XUWLV/LPLWHG ,QGLD
-.$QVHOO/LPLWHG ,QGLD A A
F 5DGKD.UVKQD)LOPV/LPLWHG ,QGLD
,QFOXGHVHTXLW\VKDUHVKHOGE\
-D\ND\RUJ$*
6XEVLGLDU\RI-.,QYHVWR7UDGH,QGLD
/LPLWHG
A -RLQW9HQWXUHRI-.,QYHVWR7UDGH,QGLD
/LPLWHG
)LQDQFLDO\HDUHQGVRQVW'HFHPEHU
' 'LVFORVXUHVPDQGDWHGE\6FKHGXOH,,,RI&RPSDQLHV$FWE\ZD\RIDGGLWLRQDOLQIRUPDWLRQ
1DPHRIWKH(QWLWLHV 1HW$VVHWVLHWRWDODVVHWV 6KDUHLQSURILWORVV
PLQXVWRWDOOLDELOLWLHV
$VDRI $PRXQW $VDRI $PRXQW
FRQVROLGDWHG `,QODFV FRQVROLGDWHG `,QODFV
QHWDVVHWV 3URILW
3DUHQW
5D\PRQG/LPLWHG
6XEVLGLDU\
,QGLDQ
&HOHEUDWLRQ$SSDUHO/LPLWHG
&RORUSOXV)DVKLRQV/LPLWHG
(YHUEOXH$SSDUHO/LPLWHG
-.)LOHV,QGLD/LPLWHG
-.7DODERW/LPLWHG
3DVKPLQD+ROGLQJV/LPLWHG
5D\PRQG$SSDUHO/LPLWHG
5D\PRQG:RROOHQ2XWHUZHDU/LPLWHG
6FLVVRUV(QJLQHHULQJ3URGXFWV/LPLWHG
6LOYHU6SDUN$SSDUHO/LPLWHG
5D\PRQG/X[XU\&RWWRQV/LPLWHG
)RUHLJQ
5D\PRQG(XURSH/LPLWHG
-D\ND\2UJ$*
-RLQW9HQWXUH
5D\PRQG8&2'HQLP3ULYDWH/LPLWHG
5RVH(QJLQHHULQJ/LPLWHG
6XEWRWDO
,QWHUFRPSDQ\(OLPLQDWLRQ &RQVROLGDWLRQ$GMXVWPHQWV
*UDQGWRWDO
0LQRULW\,QWHUHVWLQVXEVLGLDULHV
6KDUHRI3URILWLQ$VVRFLDWHV
)LJXUHVIRU6FLVVRUV(QJLQHHULQJ3URGXFWV/LPLWHGDUHILJXUHVDIWHUFRQVROLGDWLRQZLWKLWVVXEVLGLDULHV5LQJ3OXV$TXD/LPLWHGDQG5 $/RJLVWLFV/LPLWHG
6LJQLILFDQW $FFRXQWLQJ 3ROLFLHV DQG 1RWHV WR WKHVH &RQVROLGDWHG )LQDQFLDO 6WDWHPHQWV DUH LQWHQGHG WR VHUYH DV D PHDQV RI
LQIRUPDWLYH GLVFORVXUH DQG D JXLGH WR EHWWHU XQGHUVWDQGLQJ WKH FRQVROLGDWHG SRVLWLRQ RI WKH &RPSDQLHV 5HFRJQLVLQJ WKLV
SXUSRVHWKH&RPSDQ\KDVGLVFORVHGRQO\VXFK3ROLFLHVDQG1RWHVIURPWKHLQGLYLGXDOILQDQFLDOVWDWHPHQWVZKLFKIDLUO\SUHVHQW
WKHQHHGHGGLVFORVXUHV
&RQVROLGDWHG)LQDQFLDO6WDWHPHQWV
127(6727+(&2162/,'$7('),1$1&,$/67$7(0(176
`,QODFV
$VDW $VDW
VW0DUFK VW0DUFK
1RWH6KDUH&DSLWDO
$XWKRULVHG
3UHYLRXV<HDU(TXLW\6KDUHVRI`HDFK
,VVXHG6XEVFULEHG 3DLGXS
3UHYLRXV<HDU(TXLW\6KDUHVRI`HDFKIXOO\SDLGXS
7RWDO
1RWHD5HFRQFLOLDWLRQRIQXPEHURI(TXLW\6KDUHV
3DUWLFXODUV $VDWVW0DUFK $VDWVW0DUFK
1RRIVKDUHVKHOG $PRXQW 1RRIVKDUHVKHOG $PRXQW
6KDUHVDWEHJLQQLQJRIWKH\HDU
6KDUHVDWWKHHQGRIWKH\HDU
1RWHE5LJKW3UHIHUHQFHVDQGUHVWULFWLRQVDWWDFKHGWRVKDUHV
7KH&RPSDQ\KDVRQO\RQHFODVVRIHTXLW\VKDUHKDYLQJDSDUYDOXHRI`SHUVKDUH(DFKVKDUHKROGHULVHOLJLEOHIRURQHYRWHSHU
VKDUH7KHGLYLGHQGSURSRVHGE\WKH%RDUGRI'LUHFWRUVLVVXEMHFWWRWKHDSSURYDORIVKDUHKROGHUVH[FHSWLQFDVHRILQWHULPGLYLGHQG
,QWKHHYHQWRIOLTXLGDWLRQWKHHTXLW\VKDUHKROGHUVDUHHOLJLEOHWRUHFHLYHWKHUHPDLQLQJDVVHWVRIWKH&RPSDQ\DIWHUGLVWULEXWLRQRI
DOOSUHIHUHQWLDODPRXQWVLQSURSRUWLRQWRWKHLUVKDUHKROGLQJ
1RWHF'HWDLOVRIVKDUHVKHOGE\VKDUHKROGHUVKROGLQJPRUHWKDQRIWKHDJJUHJDWHVKDUHVLQWKH&RPSDQ\
1DPHRIWKH6KDUHKROGHU $VDWVW0DUFK $VDWVW0DUFK
1RRI6KDUHVKHOG RI+ROGLQJ 1RRI6KDUHVKHOG RI+ROGLQJ
-.,QYHVWRUV%RPED\/LPLWHG
/LIH,QVXUDQFH&RUSRUDWLRQRI,QGLD
-.+HOHQH&XUWLV/LPLWHG
1RWH5HVHUYHVDQG6XUSOXV
$VDW $VDW
VW0DUFK VW0DUFK
D &DSLWDO5HVHUYHV
%DODQFHDVSHUODVWDFFRXQW
$GG$ULVLQJIURPFRQYHUVLRQRIMRLQWYHQWXUHWRVXEVLGLDU\
$GG$ULVLQJRQFRQVROLGDWLRQGXHWRLQFUHDVHLQVKDUHRIHTXLW\KROGLQJLQVXEVLGLDU\
5HIHU1RWH
&ORVLQJ%DODQFH
E &DSLWDO5HGHPSWLRQ5HVHUYH
%DODQFHDVSHUODVWDFFRXQW
&ORVLQJ%DODQFH
F 6HFXULWLHV3UHPLXP$FFRXQW
%DODQFHDVSHUODVWDFFRXQW
/HVV$PRXQWVXWLOL]HGIRUH[SHQVHVRQLVVXHRI'HEHQWXUHVQHWRIWD[` ODFV
0DUFK1LO
/HVV 3UHPLXP SD\DEOH RQ UHGHPSWLRQ RI 'HEHQWXUHV QHW RI WD[ ` ODFV
0DUFK1LO
&ORVLQJ%DODQFH
&RQVROLGDWHG)LQDQFLDO6WDWHPHQWV
127(6727+(&2162/,'$7('),1$1&,$/67$7(0(176
1RWH5HVHUYHVDQG6XUSOXV&RQWG `,QODFV
$VDW $VDW
VW0DUFK VW0DUFK
G 'HEHQWXUH5HGHPSWLRQ5HVHUYH
%DODQFHDVSHUODVWDFFRXQW
$GG$PRXQWWUDQVIHUUHGIURP6XUSOXVLQ6WDWHPHQWRI3URILWDQG/RVVGXULQJWKH
\HDU
/HVV7UDQVIHUUHGWR*HQHUDO5HVHUYH
&ORVLQJ%DODQFH
H &XUUHQF\)OXFWXDWLRQ5HVHUYH
%DODQFHDVSHUODVWDFFRXQW
$GG/HVV'XULQJWKH\HDU
&ORVLQJ%DODQFH
I /HJDO5HVHUYH
J *HQHUDO5HVHUYH
%DODQFHDVSHUODVWDFFRXQW
$GG7UDQVIHUUHGIURP'HEHQWXUH5HGHPSWLRQ5HVHUYH
&ORVLQJ%DODQFH
K 5HWDLQHG(DUQLQJVLQ$VVRFLDWHV5HIHU1RWH
L 6XUSOXVLQ6WDWHPHQWRI3URILWDQG/RVV
2SHQLQJEDODQFH
$GG/HVV
$GGLWLRQDO'HSUHFLDWLRQQHWRIWD[` ODFVSXUVXDQWWRHQDFWPHQWRI
6FKHGXOH,,RIWKH$FW5HIHU1RWH
3URILWIRUWKH\HDU
3URILWIRUWKH\HDU6KDUHLQ-RLQW9HQWXUHV
3URSRVHG'LYLGHQG
'LYLGHQGGLVWULEXWLRQ7D[RQSURSRVHG'LYLGHQG
([FHVV'LYLGHQG'LVWULEXWLRQ7D[LQUHVSHFWRI3UHYLRXV<HDUZULWWHQEDFN
7UDQVIHUWR*HQHUDO5HVHUYH
7UDQVIHUWR6KDUHRI5HWDLQHG(DUQLQJVLQ$VVRFLDWHV
7UDQVIHUWR'HEHQWXUH5HGHPSWLRQ5HVHUYH
&ORVLQJ%DODQFH
7RWDO
6KDUHLQ-RLQW9HQWXUHV
7RWDO
'LYLGHQGSURSRVHGWREHGLVWULEXWHGWRHTXLW\VKDUHKROGHUVLV`3UHYLRXV<HDU`SHUHTXLW\VKDUH
1RWH/RQJ7HUP%RUURZLQJV
6HFXUHG
D 7HUPORDQV
IURPEDQNV
8QVHFXUHG
D 7HUPORDQV
IURPEDQNV
E ,QWHUHVWIUHH'HIHUUHG6DOHVWD[SD\PHQWOLDELOLWLHV
F 'HEHQWXUHV
7RWDO
6KDUHLQ-RLQW9HQWXUHV
7RWDO
&RQVROLGDWHG)LQDQFLDO6WDWHPHQWV
127(6727+(&2162/,'$7('),1$1&,$/67$7(0(176
1DWXUHRI6HFXULW\DQGWHUPVRIUHSD\PHQWIRU/RQJ7HUPVHFXUHGERUURZLQJV
1DWXUHRI6HFXULW\ 7HUPVRI5HSD\PHQW
L 7HUP ORDQ IURP EDQN EDODQFH RXWVWDQGLQJ DPRXQWLQJ WR 5HSD\DEOH LQ TXDUWHUO\ LQVWDOOPHQWV VWDUWLQJ IURP
` ODFV0DUFK` ODFVLVVHFXUHGE\ 6HSWHPEHU/DVWLQVWDOOPHQWGXHLQ-XQH5DWHRI
SDUL SDVVX FKDUJH RQ WKH HQWLUH LPPRYDEOH DVVHWV DW 9DSL LQWHUHVW SD DV DW \HDU HQG 3UHYLRXV <HDU
3ODQWDFTXLUHGRXWRIWKLVORDQDQGH[FOXVLYHILUVWFKDUJHRQ SD
WKH HQWLUH PRYDEOH DVVHWV ORFDWHG DW 9DSL 3ODQW DFTXLUHG
RXWRIWKLVORDQ
LL 7HUP ORDQ IURP EDQN EDODQFH RXWVWDQGLQJ DPRXQWLQJ WR 5HSD\DEOH LQ TXDUWHUO\ LQVWDOOPHQWV VWDUWLQJ IURP -XQH
`ODFV0DUFK`ODFVLVVHFXUHGE\ /DVW LQVWDOOPHQW GXH LQ 0DUFK 5DWH RI LQWHUHVW
ZD\ RI ILUVW SDUL SDVVX FKDUJH RQ IL[HG DVVHWV RI &KLQGZDUD SDDVDW\HDUHQG3UHYLRXV<HDUSD
DQG-DOJDRQ3ODQW
LLL 7HUP ORDQ IURP EDQN EDODQFH RXWVWDQGLQJ DPRXQWLQJ WR 5HSD\DEOH LQ TXDUWHUO\ LQVWDOOPHQWV VWDUWLQJ IURP
` ODFV 0DUFK ` ODFV LV VHFXUHG E\ 6HSWHPEHU/DVWLQVWDOOPHQWGXHLQ-XQH5DWHRI
SDUL SDVVX FKDUJH RQ WKH HQWLUH LPPRYDEOH DVVHWV DW 9DSL LQWHUHVW SD DV DW \HDU HQG 3UHYLRXV <HDU
3ODQWDQGH[FOXVLYHILUVWFKDUJHRQWKHHQWLUHPRYDEOHDVVHWV SD
DFTXLUHGRXWRIWKHORDQVORFDWHGDWWKH9DSL3ODQW
LY 7HUP ORDQ IURP EDQN EDODQFH RXWVWDQGLQJ DPRXQWLQJ WR 5HSD\DEOH LQ HTXDO TXDUWHUO\ LQVWDOOPHQWV FRPPHQFLQJ
` ODFV0DUFK` ODFVLVVHFXUHGE\ IURP-XQH/DVWLQVWDOOPHQWGXHLQ'HFHPEHU5DWH
SDUL SDVVX FKDUJH RQ WKH LPPRYDEOH DVVHWV DW 9DSL 3ODQW RILQWHUHVWSDDVDW\HDUHQG3UHYLRXV<HDU
DQGH[FOXVLYHFKDUJHRQPRYDEOHDVVHWVDFTXLUHGXQGHUWKH SD
ORDQDW9DSL3ODQW
Y 7HUP ORDQ IURP EDQN EDODQFH RXWVWDQGLQJ DPRXQWLQJ WR 5HSD\DEOHLQHTXDOKDOI\HDUO\LQVWDOOPHQWVVWDUWLQJIURP
` ODFV0DUFK`ODFVLVVHFXUHGE\ $XJXVW /DVW LQVWDOOPHQW GXH LQ )HEUXDU\ 5DWH RI
/LHQ RQ )L[HG 'HSRVLWV SODFHG ZLWK 6WDWH %DQN RI ,QGLD IRU LQWHUHVW SD DV DW \HDU HQG 3UHYLRXV <HDU
` ODFV SD
YL 7HUP ORDQ IURP EDQN EDODQFH RXWVWDQGLQJ DPRXQWLQJ 5HSD\DEOH LQ HTXDO TXDUWHUO\ LQVWDOOPHQWV FRPPHQFLQJ
WR ` ODFV 0DUFK ` ODFV SDUWLDO -XQH/DVWLQVWDOOPHQWGXHLQ0DUFK5DWHRILQWHUHVW
GLVEXUVHPHQW LV VHFXUHG E\ ILUVW FKDUJH RQ PRYDEOH DVVHWV SDDVDW\HDUHQG3UHYLRXV<HDUSD
LQFOXGLQJ SODQW DQG PDFKLQHU\ IXUQLWXUH DQG IL[WXUH DQG
RWKHU DVVHWV RI &DSWLYH 3RZHU 3ODQW DW 9DSL DQG SDUL SDVVX
FKDUJHRQWKHLPPRYDEOHDVVHWVDW9DSL3ODQW
YLL 7HUP ORDQ IURP EDQN EDODQFH RXWVWDQGLQJ DPRXQWLQJ WR 5HSD\DEOH LQ TXDUWHUO\ LQVWDOOPHQWV VWDUWLQJ IURP
`ODFV0DUFK` ODFVLVVHFXUHGE\ 1RYHPEHU /DVW LQVWDOOPHQW GXH LQ 6HSWHPEHU
ZD\ RI ILUVW SDUL SDVVX FKDUJH RQ IL[HG DVVHWV RI FKLQGZDUD 5DWH RI LQWHUHVW SD DV DW \HDU HQG 3UHYLRXV <HDU
DQG MDOJDRQ IDFWRULHV DQG VHFRQG SDUL SDVVX FKDUJH RQ SD
LPPRYHDEOHDVVHWVDW9DSL3ODQWDFTXLUHGRXWRIWKLVORDQ
YLLL 7HUP ORDQ IURP EDQN EDODQFH RXWVWDQGLQJ DPRXQWLQJ WR 5HSD\DEOH LQ HTXDO TXDUWHUO\ LQVWDOOPHQW VWDUWLQJ IURP
` ODFV0DUFK` ODFVLVVHFXUHGE\ILUVW -DQXDU\ DQG ODVW LQVWDOOPHQW GXH LQ -XO\ 5DWH RI
SDULSDVVXFKDUJHRQIL[HGDVVHWVRI&KLQGZDUDDQG-DOJDRQ LQWHUHVW SD DV DW \HDU HQG 3UHYLRXV <HDU
IDFWRULHV PRYHDEOH IL[HG DVVHWV RI FRPSDQ\ RZQHG UHWDLO SD
VWRUHV DQG VHFRQG SDUL SDVVX FKDUJH RQ WKH ODQG DW 9DSL
3ODQW
6XEVLGLDULHV
/RDQ $PRXQWLQJ WR ` /DFV 0DUFK 5HSD\DEOH LQ VSHFLILHG GDWHV LQVWDOOPHQW 0RQWKO\
` /DFV LQ VXEVLGLDULHV VHFXUHG E\ K\SRWKHFDWLRQ 4XDUWHUO\+DOI\HDUO\,QWHUHVWUDWHIURPWR
FKDUJHRYHUDVVHWVRIWKHUHVSHFWLYHVXEVLGLDU\FRPSDQ\
6KDUHLQ-9¶V
7HUP /RDQ $PRXQWLQJ WR ` ODFV 0DUFK 5HSD\DEOH LQ VSHFLILHG LQVWDOOPHQW 4XDUWHUO\ +DOI \HDUO\
` /DFV VKDUH LQ -RLQW 9HQWXUHV VHFXUHG E\ ,QWHUHVWUDWHIURPWR
K\SRWKHFDWLRQFKDUJHRYHUDVVHWVRIWKHUHVSHFWLYH-9
&RQVROLGDWHG)LQDQFLDO6WDWHPHQWV
127(6727+(&2162/,'$7('),1$1&,$/67$7(0(176
7HUPVRIUHSD\PHQWIRU/RQJ7HUPXQVHFXUHGERUURZLQJV
%RUURZLQJV 7HUPVRI5HSD\PHQW
7HUPORDQVIURPEDQNV
` ODFV3UHYLRXV<HDU`ODFV 5HSD\DEOHLQ$XJXVW5DWHRILQWHUHVWSDDVDW
\HDUHQG
` ODFV3UHYLRXV<HDU` ODFV 5HSD\DEOHLQDQQXDOLQVWDOOPHQWVRI` ODFVHDFKDQG
WKHUHDIWHUIRXUTXDUWHUO\LQVWDOOPHQWVRI` ODFVHDFK)LUVW
LQVWDOOPHQWZDVGXHLQ0DUFKDQG/DVWLQVWDOOPHQWLVGXH
LQ0DUFK5DWHRILQWHUHVWSDDVDW\HDUHQG
3ULYDWHO\3ODFHG1RQ&RQYHUWLEOH'HEHQWXUHV)DFH9DOXHRI
`ODFVHDFK
` ODFV3UHYLRXV<HDU` ODFV 5HSD\DEOHLQ2FWREHU5DWHRILQWHUHVWSDDV
DW\HDUHQG
`1LO3UHYLRXV<HDU` ODFV 5HSDLGLQ'HFHPEHU5DWHRILQWHUHVWSDDVDW
\HDUHQG
` ODFV3UHYLRXV<HDU` ODFV 5HSD\DEOH LQ -XQH 5DWH RI LQWHUHVW SD DV DW
\HDUHQG
` ODFV3UHYLRXV<HDU` ODFV 5HSD\DEOH LQ 1RYHPEHU 5DWH RI LQWHUHVW SD
DVDW\HDUHQG
` ODFV3UHYLRXV<HDU` ODFV 5HSD\DEOH LQ 1RYHPEHU 5HGHPSWLRQ SUHPLXP DW D
<LHOGWRPDWXULW\RISD
` ODFV3UHYLRXV<HDU` ODFV 5HSD\DEOHLQ$SULO5HGHPSWLRQSUHPLXPDWD<LHOGWR
PDWXULW\RISD
` ODFV3UHYLRXV<HDU`1LO 5HSD\DEOH LQ $SULO 5DWH RI LQWHUHVW SD DV DW
\HDUHQG
6XEVLGLDULHV
,QWHUHVW IUHH GHIHUUHG 6DOHV WD[ SD\PHQW OLDELOLWLHV ` 5HSD\DEOH LQ VSHFLILHG LQVWDOOPHQWV /DVW LQVWDOOPHQW GXH LQ
ODFV0DUFK`ODFV 0D\
6KDUHLQ-9
/RDQSURYLGHGE\-93DUWQHUDVORQJWHUPILQDQFLDOVXSSRUW 1RVSHFLILFUHSD\PHQWVFKHGXOH
`ODFV0DUFK`/DFV
7HUPORDQIURPEDQNUHSDLGLQ3UHYLRXV<HDUZDVVHFXUHGE\H[FOXVLYHFKDUJHRQWKHVSHFLILFDVVHWVDQGSDULSDVVXFKDUJH
RYHUWKHLPPRYDEOHDVVHWVDW9DSL3ODQWWKHVDWLVIDFWLRQRIFKDUJHZLWK5HJLVWUDURI&RPSDQLHVLQUHVSHFWRIWKHVDLGORDQLV
XQGHUSURFHVV
,QVWDOOPHQWVIDOOLQJGXHZLWKLQD\HDULQUHVSHFWRIDOOWKHDERYH/RDQVDJJUHJDWLQJ`ODFV3UHYLRXV<HDU`
ODFVKDYHEHHQJURXSHGXQGHU³&XUUHQWPDWXULWLHVRIORQJWHUPGHEW´5HIHU1RWH
5DWHRI,QWHUHVWLVZLWKRXWFRQVLGHULQJLQWHUHVWVXEVLG\XQGHU78)VFKHPH
1RWH2WKHU/RQJ7HUP/LDELOLWLHV `,QODFV
$VDW $VDW
VW0DUFK VW0DUFK
&RQVROLGDWHG)LQDQFLDO6WDWHPHQWV
127(6727+(&2162/,'$7('),1$1&,$/67$7(0(176
1RWH6KRUW7HUP%RUURZLQJV `,QODFV
$VDW $VDW
VW0DUFK VW0DUFK
6HFXUHG
D :RUNLQJ&DSLWDO/RDQVUHSD\DEOHRQGHPDQG
E %X\HUVFUHGLWDUUDQJHPHQWV
:RUNLQJFDSLWDOORDQVIURPEDQNVDQGEX\HUVFUHGLWDUUDQJHPHQWVDUHJHQHUDOO\
VHFXUHGE\K\SRWKHFDWLRQRILQYHQWRULHVERRNVGHEWVDQGRWKHUFXUUHQWDVVHWV
8QVHFXUHG
D %X\HUVFUHGLWDUUDQJHPHQWV
E %\LVVXHRI&RPPHUFLDO3DSHUV
>0D[LPXPEDODQFHRXWVWDQGLQJGXULQJWKH\HDU`ODFV3UHYLRXV<HDU`
ODFV@
7RWDO
6KDUHLQ-RLQW9HQWXUHV
7RWDO
1RWH2WKHU&XUUHQW/LDELOLWLHV
D &XUUHQWPDWXULWLHVRIORQJWHUPGHEW5HIHU1RWH
E ,QWHUHVWDFFUXHGEXWQRWGXHRQERUURZLQJV
F ,QWHUHVWDFFUXHGDQGGXHRQERUURZLQJV
G 8QFODLPHGGLYLGHQGV
H 8QFODLPHGPDWXUHGGHEHQWXUHVDQGLQWHUHVWDFFUXHGWKHUHRQ
I 'HSRVLWVIURP'HDOHUVDQG$JHQWV
J 'LYLGHQG'LVWULEXWLRQ7D[RQ3UHIHUHQFHGLYLGHQGE\DVXEVLGLDU\
K 6WDWXWRU\'XHV
L $GYDQFHDJDLQVWVDOHV
M 2YHUGUDZQ%DQN%DODQFHV
N 6DODU\DQG:DJHVSD\DEOH
O 2WKHUSD\DEOHV
7RWDO
6KDUHLQ-RLQW9HQWXUHV
7RWDO
7KHUHDUHQRDPRXQWVGXHIRUSD\PHQWWRWKH,QYHVWRUV(GXFDWLRQDQG3URWHFWLRQ)XQGXQGHU6HF&RIWKH&RPSDQLHV$FW
DVDWWKH\HDUHQG6HFWLRQRI&RPSDQLHV$FWZKLFKFRUUHVSRQGVWRVHFWLRQ&RI&RPSDQLHV$FWKDVQRW
\HWEHHQHQIRUFHG
,QFOXGHV&XUUHQWPDWXULWLHVRIORQJWHUPGHEW`ODFV3UHYLRXV<HDU`ODFV
1RWH6KRUW7HUPSURYLVLRQV `,QODFV
$VDW $VDW
VW0DUFK VW0DUFK
D 3URYLVLRQIRUHPSOR\HHEHQHILWV
E 3URSRVHG'LYLGHQG
F 'LYLGHQG'LVWULEXWLRQ7D[
G 3URYLVLRQIRUOLWLJDWLRQGLVSXWH
H 3URYLVLRQIRUWD[QHWRIDGYDQFHWD[
7RWDO
6KDUHLQ-RLQW9HQWXUHV
7RWDO
3URYLVLRQIRUOLWLJDWLRQGLVSXWHUHSUHVHQWVFODLPVDJDLQVWWKH&RPSDQ\WKDWDUHH[SHFWHGWRPDWHULDOLVHLQUHVSHFWRIPDWWHUVLQ
OLWLJDWLRQ
&RQVROLGDWHG)LQDQFLDO6WDWHPHQWV
127(6727+(&2162/,'$7('),1$1&,$/67$7(0(176
1RWH)L[HG$VVHWV
`,QODFV
%DODQFH $GGLWLRQV 'HGXFWLRQV %DODQFH 8SWR 5HWDLQHG ,PSDLUPHQW )RUWKH 'HGXFWLRQV 8SWR $VDW $VDW
DVDW $GMXVWPHQWV $GMXVWPHQWV DVDW VW$SULO (DUQLQJV /RVV <HDU $GMXVWPHQWV VW VW VW
VW$SULO VW >5HIHUG 0DUFK 0DUFK 0DUFK
0DUFK EHORZ@
, 7DQJLEOH$VVHWV
/DQG
/HDVHKROG/DQG
%XLOGLQJV
/HDVHKROG,PSURYHPHQWV
3ODQWDQG(TXLSPHQW
&RPSXWHUV
)XUQLWXUHDQG)L[WXUHV
2IILFH(TXLSPHQWV
/LYHVWRFNDWERRNYDOXH
9HKLFOHV
%RDWVDQG:DWHU(TXLSPHQWV
$LUFUDIW
7RWDO
6KDUHLQ-RLQW9HQWXUH
7RWDO7DQJLEOH$VVHWV
,, ,QWDQJLEOH$VVHWV
6RIWZDUH
*RRGZLOORQ&RQVROLGDWLRQ
7HFKQLFDO.QRZKRZ
7RWDO
6KDUHLQ-RLQW9HQWXUH
7RWDO,QWDQJLEOH$VVHWV
3UHYLRXV<HDU¶V7RWDO,,,
D ,QWHUPVRIWKHDFTXLVLWLRQSURFHHGLQJVLQLWLDWHGE\7KDQH0XQLFLSDO&RUSRUDWLRQDERXWVTPHWHUVRIWKH&RPSDQ\¶VIUHHKROGODQGDW7KDQHLVDFTXLUHGIRUWKH
SXUSRVHRIZLGHQLQJRIPXQLFLSDOURDG1HFHVVDU\DFFRXQWLQJHIIHFWIRUWKHVDPHZLOOEHJLYHQLQWKH\HDULQZKLFKWKHPDWWHULVILQDOO\VHWWOHG
E %XLOGLQJVLQFOXGH` ODFV3UHYLRXV<HDU` ODFVLQUHVSHFWRIRZQHUVKLSIODWVSRUWLRQVRIEXLOGLQJVRU&RRSHUDWLYH+RXVLQJ6RFLHWLHVDQG`ODF3UHYLRXV<HDU
`ODFVLQUHVSHFWRIVKDUHVKHOGLQ&RRSHUDWLYH+RXVLQJ6RFLHWLHV
F /HDVHKROG/DQGDQG%XLOGLQJVDFTXLUHGSXUVXDQWWRWKHVFKHPHRI'HPHUJHULQHDUOLHU\HDUDUHSHQGLQJUHJLVWUDWLRQLQWKHQDPHRIWKH&RPSDQ\
G ,QDFFRUGDQFHZLWKWKHSURYLVLRQVRI6FKHGXOH,,RIWKH$FWLQFDVHRIIL[HGDVVHWVZKLFKKDYHFRPSHOWHGWKHLUXVHIXOOLIHDVDWVW$SULOWKHFDUU\LQJYDOXHQHWRI
UHVLGXDOYDOXHDPRXQWLQJWR`ODFVQHWRIGHIHUUHGWD[RI`ODFVDVDWUDQVLWLRQDOSURYLVLRQKDVEHHQUHFRJQLVHGLQWKH5HWDLQHG(DUQLQJV
)XUWKHULQFDVHRIDVVHWVDFTXLUHGSULRUWRVW$SULOWKHFDUU\LQJYDOXHRIDVVHWVQHWRIUHVLGXDOYDOXHLVGHSUHFLDWHGRYHUWKHUHPDLQLQJXVHIXOOLIHDVGHWHUPLQHG
HIIHFWLYHVW$SULO
'HSUHFLDWLRQDQGDPRUWL]DWLRQH[SHQVHVIRUWKH\HDUZRXOGKDYHEHHQKLJKHUE\` ODFVKDGWKH&RPSDQ\FRQWLQXHGZLWKWKHSUHYLRXVDVVHVVPHQWRIXVHIXO
OLIHRIVXFKDVVHWV
H &DSLWDOZRUNLQSURJUHVVLQFOXGHV`ODFV3UHYLRXV<HDU`ODFVWRZDUGVFRVWLQFXUUHGWLOOGDWHIRUUHGHYHORSPHQWRI&RPSDQ\¶VSURSHUW\DW%KXODEKDL
'HVDL5RDG0XPEDLLQUHVSHFWRIZKLFKWKH0XQLFLSDO&RPPLVVLRQHUKDVSDVVHGDVSHDNLQJRUGHUGLUHFWLQJ&RPSDQ\WRVXEPLWDUHYLVHGSODQ7KH&RPSDQ\KDYLQJ
VXEVWDQWLDOO\FRPSOHWHGFRQVWUXFWLRQDVSHUWKHSHUPLVVLRQVJUDQWHGKDVUHSUHVHQWHGWRWKH&RUSRUDWLRQDQG6WDWH*RYHUQPHQWWRUHFRQVLGHUWKHRUGHU5HVSRQVHWRWKH
VDPHLVDZDLWHG
I ,QYLHZRIXQHFRQRPLFDOFRVWRIJHQHUDWLRQGXHWRKLJKFRVWRIJDVSULFHVWKH&RPSDQ\KDGLQWKH3UHYLRXV<HDUUHFRJQLVHGDQGLPSDLUPHQWORVVRI`ODFVIRULWV
JDVEDVHG&DSWLYH3RZHU3ODQWDWLWVPDQXIDFWXULQJIDFLOLW\LQ9DSL*XMDUDW
&RQVROLGDWHG)LQDQFLDO6WDWHPHQWV
127(6727+(&2162/,'$7('),1$1&,$/67$7(0(176
1RWH1RQ&XUUHQW,QYHVWPHQWV `,QODFV
$VDW $VDW
VW0DUFK VW0DUFK
$ 7UDGH,QYHVWPHQWV
D *RYHUQPHQWVHFXULWLHVSOHGJHGVHFXULWLHV
E $VVRFLDWHV5HIHU1RWH
/HVV3URYLVLRQIRUGLPXQLWLRQLQWKHYDOXHRI,QYHVWPHQWV
7RWDO$
% 2WKHU,QYHVWPHQWV
D (TXLW\6KDUHV
/HVV3URYLVLRQIRUGLPXQLWLRQLQWKHYDOXHRI,QYHVWPHQWV
E ,QYHVWPHQWVLQ0XWXDO)XQGV
F 9HQWXUHFDSLWDOIXQGV
/HVV3URYLVLRQIRUGLPXQLWLRQLQWKHYDOXHRI,QYHVWPHQWV
7RWDO%
*UDQG7RWDO$%
7RWDO
6KDUHLQ-RLQW9HQWXUHV
7RWDO
%RRN9DOXH 0DUNHW9DOXH
VW0DUFK VW0DUFK VW0DUFK VW0DUFK
$JJUHJDWHRI4XRWHG,QYHVWPHQWV
$JJUHJDWHRI8QTXRWHG,QYHVWPHQWV
7RWDO
1HWDVVHWYDOXHLQFDVHRI0XWXDO)XQGV
1RWH/RQJ7HUP/RDQVDQG$GYDQFHV
$VDW $VDW
VW0DUFK VW0DUFK
D &DSLWDO$GYDQFHV
8QVHFXUHGFRQVLGHUHGJRRG
E 6HFXULW\'HSRVLWV
8QVHFXUHGFRQVLGHUHGJRRG
8QVHFXUHGFRQVLGHUHGGRXEWIXO
/HVV3URYLVLRQIRUGRXEWIXOGHSRVLWV
F $GYDQFH7D[QHWRISURYLVLRQIRUWD[
G $GYDQFHVUHFRYHUDEOHLQFDVKRUNLQG
8QVHFXUHGFRQVLGHUHGJRRG
H 2WKHUORDQVDQGDGYDQFHV
8QVHFXUHGFRQVLGHUHGJRRG
/RDQVWR(PSOR\HHV
2WKHUV
7RWDO
6KDUHLQ-RLQW9HQWXUHV
7RWDO
&RQVROLGDWHG)LQDQFLDO6WDWHPHQWV
127(6727+(&2162/,'$7('),1$1&,$/67$7(0(176
1RWH2WKHU1RQ&XUUHQW$VVHWV `,QODFV
$VDW $VDW
VW0DUFK VW0DUFK
1RWH&XUUHQW,QYHVWPHQWV
$VDW $VDW
VW0DUFK VW0DUFK
D ,QYHVWPHQWLQHTXLW\VKDUHV
E ,QYHVWPHQWVLQSUHIHUHQFHVKDUHV
F ,QYHVWPHQWVLQ'HEHQWXUHV%RQGV
G ,QYHVWPHQWVLQ0XWXDO)XQGV
H ,QYHVWPHQWLQ&HUWLILFDWHRI'HSRVLWV
7RWDO
/HVV3URYLVLRQIRUGLPXQLWLRQLQWKHYDOXHRI,QYHVWPHQWV
7RWDO
6KDUHLQ-RLQW9HQWXUHV
7RWDO
%RRN9DOXH 0DUNHW9DOXH
VW0DUFK VW0DUFK VW0DUFK VW0DUFK
$JJUHJDWHRI4XRWHG,QYHVWPHQWV
$JJUHJDWHRI8QTXRWHG,QYHVWPHQWV
1HWDVVHWYDOXHLQFDVHRI0XWXDO)XQGV
1RWH,QYHQWRULHV
$VDW $VDW
VW0DUFK VW0DUFK
D 5DZ0DWHULDOV
,QWUDQVLW
E :RUNLQSURJUHVV
F )LQLVKHGJRRGV
G 6WRFNLQWUDGH
,QWUDQVLW
H 6WRUHVDQGVSDUHV
,QWUDQVLW
I /RRVH7RROV
J $FFXPXODWHGFRVWRQFRQYHUVLRQFRQWUDFWV
7RWDO
6KDUHLQ-RLQW9HQWXUHV
7RWDO
&RQVROLGDWHG)LQDQFLDO6WDWHPHQWV
127(6727+(&2162/,'$7('),1$1&,$/67$7(0(176
1RWH7UDGH5HFHLYDEOHV `,QODFV
$VDW $VDW
VW0DUFK VW0DUFK
7UDGHUHFHLYDEOHVRXWVWDQGLQJIRUDSHULRGH[FHHGLQJVL[PRQWKVIURP
WKHGDWHWKH\DUHGXHIRUSD\PHQW
6HFXUHGFRQVLGHUHGJRRG
8QVHFXUHGFRQVLGHUHGJRRG
8QVHFXUHGFRQVLGHUHGGRXEWIXO
/HVV3URYLVLRQIRUGRXEWIXOGHEWV
7UDGHUHFHLYDEOHVRXWVWDQGLQJIRUDSHULRGOHVVWKDQVL[PRQWKVIURP
WKHGDWHWKH\DUHGXHIRUSD\PHQW
6HFXUHGFRQVLGHUHGJRRG
8QVHFXUHGFRQVLGHUHGJRRG
8QVHFXUHGFRQVLGHUHGGRXEWIXO
/HVV3URYLVLRQIRUGRXEWIXOGHEWV
7RWDO
6KDUHLQ-RLQW9HQWXUHV
7RWDO
1RWH&DVKDQG%DQN%DODQFHV
, &DVKDQG&DVK(TXLYDOHQWV
D %DODQFHVZLWKEDQNV
E &KHTXHVGUDIWVRQKDQG
F &DVKRQKDQG
G %DQNGHSRVLWVZLWKOHVVWKDQPRQWKVPDWXULW\
,, 2WKHU%DQN%DODQFHV
D 8QFODLPHG'LYLGHQG
E /RQJWHUPGHSRVLWVZLWKPDWXULW\PRUHWKDQPRQWKVEXWOHVVWKDQPRQWKV
F %DODQFHVZLWKEDQNVWRWKHH[WHQWKHOGDVPDUJLQPRQH\#
7RWDO
6KDUHLQ-RLQW9HQWXUHV
7RWDO
6KDUHLQ-RLQW9HQWXUHVLQFOXGHV&DVKDQG&DVK(TXLYDOHQWV`ODFV3<`ODFV
,QFOXGHVGHSRVLWVDJJUHJDWLQJ`ODFV3UHYLRXV<HDU` ODFVHDUPDUNHGDJDLQVWGHEHQWXUHVGXHIRUUHGHPSWLRQ
LQQH[WWZHOYHPRQWKV
# +HOGDVOLHQE\EDQNDJDLQVWWHUPORDQDPRXQWLQJWR`ODFV3UHYLRXV<HDU`ODFV
1RWH6KRUWWHUPORDQVDQGDGYDQFHV
D $GYDQFHVWRUHODWHGSDUWLHV8QVHFXUHGFRQVLGHUHGJRRG
E $GYDQFHVWR6XSSOLHUV
F 6HFXULW\'HSRVLWV
G $GYDQFHWD[QHWRISURYLVLRQIRUWD[
H $GYDQFHVUHFRYHUDEOHLQFDVKRULQNLQGRUIRUYDOXHWREHUHFHLYHG
I /RDQVWRHPSOR\HHV
J 2WKHUV
7RWDO
6KDUHLQ-RLQW9HQWXUHV
7RWDO
&RQVROLGDWHG)LQDQFLDO6WDWHPHQWV
127(6727+(&2162/,'$7('),1$1&,$/67$7(0(176
1RWH2WKHU&XUUHQW$VVHWV `,QODFV
$VDW $VDW
VW0DUFK VW0DUFK
D ,QWHUHVW6XEVLG\DQG,QWHUHVWUHFHLYDEOH
E ([SRUW,QFHQWLYHUHFHLYDEOH
F &ODLPVDQGRWKHUUHFHLYDEOHV
G 2WKHUV
7RWDO
6KDUHLQ-RLQW9HQWXUHV
7RWDO
1RWH5HYHQXHIURPRSHUDWLRQV*URVV
<HDUHQGHG <HDUHQGHG
VW0DUFK VW0DUFK
6DOHRISURGXFWV
L 0DQXIDFWXUHGJRRGV
LL 6WRFNLQ7UDGH
/HVV
6DOHVUHWXUQV
2WKHUGLVFRXQWVDQGDOORZDQFHV
6DOHRIVHUYLFHV
L -RE:RUN
LL 2WKHUV
2WKHURSHUDWLQJUHYHQXHV
L ([SRUW,QFHQWLYHVHWF
LL 3URFHVVZDVWHVDOH
LLL 2WKHUV
7RWDO
6KDUHLQ-RLQW9HQWXUHV
7RWDO
1RWH2WKHU,QFRPH
,QWHUHVW,QFRPH
'LYLGHQGV
L IURP&XUUHQW,QYHVWPHQWV
LL IURP/RQJWHUP,QYHVWPHQWV
1HW*DLQRQH[FKDQJHIOXFWXDWLRQ
1HW*DLQRQVDOHRIFXUUHQWLQYHVWPHQWV
1HW*DLQRQVDOHRI/RQJWHUP,QYHVWPHQWV
5HQWDQGFRPSHQVDWLRQ
3URYLVLRQQRORQJHUUHTXLUHG
2WKHUQRQRSHUDWLQJLQFRPH
7RWDO
6KDUHLQ-RLQW9HQWXUHV
7RWDO
1RWH&RVWRIPDWHULDOVFRQVXPHG
2SHQLQJ6WRFN
$GG2Q-RLQW9HQWXUHEHFRPLQJD6XEVLGLDU\
3XUFKDVH
/HVV6DOHV
/HVV&ORVLQJ6WRFN
7RWDO
6KDUHLQ-RLQW9HQWXUHV
7RWDO
&RQVROLGDWHG)LQDQFLDO6WDWHPHQWV
127(6727+(&2162/,'$7('),1$1&,$/67$7(0(176
1RWH0DQXIDFWXULQJDQG2SHUDWLQJ&RVWV `,QODFV
<HDUHQGHG <HDUHQGHG
VW0DUFK VW0DUFK
&RQVXPSWLRQRIVWRUHVDQGVSDUHSDUWV
3RZHUDQGIXHO
-REZRUNFKDUJHV
5HSDLUVWR%XLOGLQJ RWKHUV
5HSDLUVWRPDFKLQHU\
2WKHU0DQXIDFWXULQJDQG2SHUDWLQJH[SHQVHV
7RWDO
6KDUHLQ-RLQW9HQWXUHV
7RWDO
1RWH&KDQJHVLQLQYHQWRULHVRIILQLVKHGJRRGVZRUNLQSURJUHVVDQGVWRFNLQWUDGH
2SHQLQJ6WRFN
)LQLVKHG*RRGV
:RUNLQ3URJUHVV
6WRFNLQ7UDGH
$FFXPXODWHGFRVWRQFRQYHUVLRQFRQWUDFWV
$GG2Q-RLQW9HQWXUHEHFRPLQJD6XEVLGLDU\
&ORVLQJ6WRFN
)LQLVKHG*RRGV
:RUNLQ3URJUHVV
6WRFNLQ7UDGH
$FFXPXODWHGFRVWRQFRQYHUVLRQFRQWUDFWV
$GG/HVV9DULDWLRQLQH[FLVHGXW\RQRSHQLQJDQGFORVLQJVWRFNRIILQLVKHGJRRGV
7RWDO
6KDUHLQ-RLQW9HQWXUHV
7RWDO
1RWH(PSOR\HH%HQHILWV([SHQVH
6DODULHV:DJHVDQGLQFHQWLYHV
&RQWULEXWLRQVWRSURYLGHQWDQGRWKHUIXQGV
6WDIIZHOIDUHH[SHQVHV
7RWDO
6KDUHLQ-RLQW9HQWXUHV
7RWDO
1RWH)LQDQFH&RVWV
,QWHUHVWH[SHQVH
2WKHUERUURZLQJFRVWV
$SSOLFDEOH1HW/RVVRQFXUUHQF\IOXFWXDWLRQVDQGWUDQVODWLRQ
7RWDO
6KDUHLQ-RLQW9HQWXUHV
7RWDO
&RQVROLGDWHG)LQDQFLDO6WDWHPHQWV
127(6727+(&2162/,'$7('),1$1&,$/67$7(0(176
1RWH2WKHU([SHQVHV `,QODFV
<HDUHQGHG <HDUHQGHG
VW0DUFK VW0DUFK
5HQW
/HDVH5HQWDOV
,QVXUDQFH
5HSDLUV 0DLQWHQDQFH2WKHUV
5DWHVDQGWD[HV
$GYHUWLVHPHQW
&RPPLVVLRQWRVHOOLQJDJHQWV
)UHLJKW2FWURLHWF
%DG'HEWV$GYDQFHV&ODLPVDQGGHSRVLWVZULWWHQRII
/HVV3URYLVLRQZULWWHQEDFN
3URYLVLRQIRUGRXEWIXOGHEWV
/HJDODQG3URIHVVLRQDOFKDUJHV
7UDYHOOLQJ([SHQVHV
6DOHV3URPRWLRQ([SHQVHV
3URYLVLRQIRUGLPLQXWLRQLQYDOXHRI/RQJ7HUP,QYHVWPHQWV
'LUHFWRU¶V6LWWLQJ)HHV
1HWORVVRQH[FKDQJHIOXFWXDWLRQV
1HWORVVRQVDOHRIDVVHWV
&RPPLVVLRQWRQRQH[HFXWLYH'LUHFWRUV
&RUSRUDWH6RFLDO5HVSRQVLELOLW\&65H[SHQVHV
0LVFHOODQHRXVH[SHQVHV
7RWDO
6KDUHLQ-RLQW9HQWXUHV
7RWDO
,QFOXGHV&65H[SHQVHV`ODFV3UHYLRXV<HDU1LO
&RQVROLGDWHG)LQDQFLDO6WDWHPHQWV
127(6727+(&2162/,'$7('),1$1&,$/67$7(0(176
`LQODFV
$VDW $VDW
VW0DUFK VW0DUFK
&RPPLWPHQWV
% (VWLPDWHGDPRXQWRIFRQWUDFWVUHPDLQLQJWREHH[HFXWHGRQFDSLWDODFFRXQW
DQGQRWSURYLGHGIRUQHWRIFDSLWDODGYDQFHV>LQFOXGLQJ`ODFV3UHYLRXV
<HDU ` ODFV EHLQJ VKDUH LQ DQ $VVRFLDWH &RPSDQ\@ >LQFOXGLQJ VKDUH RI
-RLQW9HQWXUHV`ODFV3UHYLRXV<HDU`ODFV@
([FHSWLRQDO,WHPV1HW
D 9567HUPLQDWLRQSD\PHQWV
E *DLQUHODWLQJWRGLVFRQWLQXHGRSHUDWLRQV5HIHU1RWH
F 3URYLVLRQUHODWLQJWRVRFLDOFRVWREOLJDWLRQZULWWHQEDFNE\RYHUVHDVVXEVLGLDU\
RID-RLQW9HQWXUH
G ,PSDULPHQWRI*DVEDVHG&DSWLYH3RZHU3ODQW5HIHU1RWHIIRU3UHYLRXV
<HDU
H :ULWHRIIRIGHEHQWXUHVLQD-RLQW9HQWXUH5HIHU1RWHIRU3UHYLRXV<HDU
`LQODFV
$ 'HIHUUHG7D[/LDELOLW\1HW $VDW $VDW $VDW
D 'HIHUUHG7D[/LDELOLW\RQDFFRXQWRI
'HSUHFLDWLRQQHW
E 'HIHUUHG7D[$VVHWRQDFFRXQWRI
&RQVROLGDWHG)LQDQFLDO6WDWHPHQWV
127(6727+(&2162/,'$7('),1$1&,$/67$7(0(176
6XEVLGLDULHVRI58'3/8&26SRUWVZHDU,QWHUQDWLRQDO1986,DQG8&2)DEULFV,QF8),KDGGLVFRQWLQXHGWKHLURSHUDWLRQVLQ
7KHGLVFORVXUHVZLWKUHVSHFWWRWKHVHGLVFRQWLQXLQJRSHUDWLRQVDUHDVXQGHU
`LQODFV
6XEVLGLDULHVRI5D\PRQG8&2'HQLP3ULYDWH/LPLWHG
7RWDO$VVHWVDWWKHFORVHRIWKH\HDU
,QFRPHIURP([FHSWLRQDO$FWLYLW\3RVWFORVXUHRIRSHUDWLRQRI8),
5HODWHGSDUWLHVGLVFORVXUHV
5HODWLRQVKLSV
D -RLQW9HQWXUHV
5D\PRQG/X[XU\&RWWRQV/WG)RUPHUO\NQRZQDV5D\PRQG=DPEDLWL/LPLWHGXSWRWK6HS
5RVH(QJLQHHUHG3URGXFWV,QGLD3YW/LPLWHG
5D\PRQG8FR'HQLP3ULYDWH/LPLWHGDQGLWV6XEVLGLDULHVDQG-RLQW9HQWXUH
E $VVRFLDWHV
-.,QYHVWR7UDGH,QGLD/LPLWHG
37-D\ND\)LOHV,QGRQHVLD
-.+HOHQH&XUWLV/LPLWHG
-.$QVHOO/LPLWHG
5DGKD.UVKQD)LOPV/LPLWHG
F 2WKHUUHODWHG3DUW\
-.,QYHVWRUV%RPED\/LPLWHG
G .H\0DQDJHPHQW3HUVRQQHOWKHLUUHODWLYHVDQGWKHLUHQWHUSULVHVZKHUHWUDQVDFWLRQVKDYHWDNHQSODFH
6KUL*DXWDP+DUL6LQJKDQLD
6PW1DZD]6LQJKDQLD:LIHRI6KUL*DXWDP+DUL6LQJKDQLD
6KUL+6XQGHU
'U9LMD\SDW6LQJKDQLDIDWKHURI6KUL*DXWDP+DUL6LQJKDQLD
6LOYHU6RDSV3ULYDWH/LPLWHG
$YDQL$JULFXOWXUDO)DUPV3ULYDWH/LPLWHG
6PW0HHQDNVKL6XQGHU:LIHRI6KUL+6XQGHU
1RWH5HODWHGSDUW\UHODWLRQVKLSLVDVLGHQWLILHGE\WKH&RPSDQ\DQGUHOLHGXSRQE\WKH$XGLWRUV
7UDQVDFWLRQVFDUULHGRXWZLWKUHODWHGSDUWLHVUHIHUUHGLQDERYHLQRUGLQDU\FRXUVHRIEXVLQHVV
`LQODFV
1DWXUHRIWUDQVDFWLRQV 5HODWHG3DUWLHV
5HIHUUHGLQD 5HIHUUHGLQE 5HIHUUHGLQF 5HIHUUHGLQG
DERYH DERYH DERYH DERYH
&XUUHQW 3UHYLRXV &XUUHQW 3UHYLRXV &XUUHQW 3UHYLRXV &XUUHQW 3UHYLRXV
\HDU <HDU \HDU <HDU \HDU <HDU \HDU <HDU
3XUFKDVHV
*RRGVDQG0DWHULDOV
6DOHV
*RRGVDQG0DWHULDOV
-RE:RUN&KDUJHV
([SHQVHV
5HQWDQGRWKHUVHUYLFHFKDUJHV
-RE:RUN&KDUJHV
$JHQF\&RPPLVVLRQ
5HPXQHUDWLRQ
,QWHUHVWSDLG
3URIHVVLRQDO)HHV
'LUHFWRUV¶ )HHV &RPPLVVLRQ
LQFOXGLQJVHUYLFHWD[
2WKHUUHLPEXUVHPHQW
,QFRPH
5HQWDQGRWKHUVHUYLFHFKDUJHV
6KDUHG6HUYLFHV
2WKHU5HFHLSWV
'HSXWDWLRQRIVWDII
$GYHUWLVHPHQW5HLPEXUVHPHQWV
2WKHUUHLPEXUVHPHQW
&RQVROLGDWHG)LQDQFLDO6WDWHPHQWV
127(6727+(&2162/,'$7('),1$1&,$/67$7(0(176
`LQODFV
1DWXUHRIWUDQVDFWLRQV 5HODWHG3DUWLHV
5HIHUUHGLQD 5HIHUUHGLQE 5HIHUUHGLQF 5HIHUUHGLQG
DERYH DERYH DERYH DERYH
&XUUHQW 3UHYLRXV &XUUHQW 3UHYLRXV &XUUHQW 3UHYLRXV &XUUHQW 3UHYLRXV
\HDU <HDU \HDU <HDU \HDU <HDU \HDU <HDU
2XWVWDQGLQJV
3D\DEOH
5HFHLYDEOH
$JHQF\'HSRVLWVUHFHLYHG
3URSHUW\'HSRVLWVSDLG
3URSHUW\'HSRVLWVUHFHLYHG
'LVFORVXUHLQUHVSHFWRIPDWHULDOWUDQVDFWLRQVZLWKUHODWHGSDUWLHVGXULQJWKH\HDULQFOXGHG
LQDERYH
3XUFKDVHV
*RRGVDQG0DWHULDOV
5D\PRQG8&2'HQLP3ULYDWH/LPLWHG
-.,QYHVWRUV%RPED\/WG
5D\PRQG/X[XU\&RWWRQV/WG
6DOHV
*RRGV0DWHULDOVHWF
-.,QYHVWRUV%RPED\/WG
-REZRUNFKDUJHV
5D\PRQG8&2'HQLP3ULYDWH/LPLWHG
([SHQVHV
5HQWDQGRWKHUVHUYLFHFKDUJHV
-.,QYHVWR7UDGH,QGLD/WG
-.,QYHVWRUV%RPED\/WG
-REZRUNFKDUJHV
-.,QYHVWRUV%RPED\/WG
$JHQF\FRPPLVVLRQV
-.,QYHVWRUV%RPED\/WG
,QWHUHVW3DLG
-.,QYHVWRUV%RPED\/WG
5HPXQHUDWLRQ
6KUL*DXWDP+DUL6LQJKDQLD
6KUL+6XQGHU
3URIHVVLRQDO)HHV
'U936LQJKDQLD
'LUHFWRUV6LWWLQJ)HHV &RPPLVVLRQWR1RQ([HFXWLYH'LUHFWRUV
'U936LQJKDQLD
6KUL*DXWDP+DUL6LQJKDQLD
6PW1DZD]6LQJKDQLD
2WKHUUHLPEXUVHPHQWV
-.,QYHVWR7UDGH,QGLD/WG
-.,QYHVWRUV%RPED\/WG
,QFRPH
5HQW RWKHUVHUYLFHFKDUJHV
-.+HOHQH&XUWLV/WG
-.,QYHVWRUV%RPED\/WG
6KDUHG6HUYLFHV
5D\PRQG8&2'HQLP3ULYDWH/LPLWHG
2WKHU5HFHLSWV
'HSXWDWLRQRIVWDII
-.+HOHQH&XUWLV/WG
-.,QYHVWRUV%RPED\/WG
$GYHUWLVHPHQW5HLPEXUVHPHQWV
-.,QYHVWRUV%RPED\/WG
-.,QYHVWR7UDGH,QGLD/WG
-.+HOHQH&XUWLV/WG
2WKHUUHLPEXUVHPHQWV
-.+HOHQH&XUWLV/WG
-.,QYHVWRUV%RPED\/WG
&RQVROLGDWHG)LQDQFLDO6WDWHPHQWV
127(6727+(&2162/,'$7('),1$1&,$/67$7(0(176
2XWVWDQGLQJV
3D\DEOH
-.,QYHVWRUV%RPED\/WG
5HFHLYDEOH
-.,QYHVWRUV%RPED\/WG
5D\PRQG8&2'HQLP3ULYDWH/LPLWHG
$JHQF\'HSRVLWVUHFHLYHG
-.,QYHVWRUV%RPED\/WG
3URSHUW\'HSRVLWSDLG
-.,QYHVWRUV%RPED\/WG
3URSHUW\'HSRVLWUHFHLYHG
5D\PRQG8&2'HQLP3ULYDWH/LPLWHG
-.,QYHVWR7UDGH,QGLD/WG
6(*0(17,1)250$7,21
%86,1(666(*0(17
`LQODFV
3DUWLFXODUV 7H[WLOH 'HQLP 6KLUWLQJ $SSDUHO *DUPHQWLQJ 7RROV +DUGZDUH $XWR 2WKHUV (OLPLQDWLRQ 7RWDO
&RPSRQHQWV
&XUUHQW 3UHYLRXV &XUUHQW 3UHYLRXV &XUUHQW 3UHYLRXV &XUUHQW 3UHYLRXV &XUUHQW 3UHYLRXV &XUUHQW 3UHYLRXV &XUUHQW 3UHYLRXV &XUUHQW 3UHYLRXV &XUUHQW 3UHYLRXV
\HDU \HDU \HDU \HDU \HDU \HDU \HDU \HDU \HDU \HDU \HDU \HDU \HDU \HDU \HDU \HDU \HDU \HDU
6HJPHQW5HYHQXH
([WHUQDO5HYHQXH
,QWHU6HJPHQW5HYHQXH
7RWDO5HYHQXH
6HJPHQW5HVXOW
$GG/HVV
0LQRULW\,QWHUHVW
8QDOORFDWHGLQFRPH
H[SHQVHV1HW
)LQDQFHFRVWV
([FHSWLRQDO,WHPV1HW
3URYLVLRQIRU7D[HV
6KDUHRI3URILWLQ
$VVRFLDWH&RPSDQLHV
1HW3URILW
2WKHU,QIRUPDWLRQ
6HJPHQW$VVHWV
8QDOORFDWHGDVVHWV
7RWDO$VVHWV
6HJPHQW/LDELOLWLHV
0LQRULW\,QWHUHVW
8QDOORFDWHG/LDELOLWLHV
7RWDO/LDELOLWLHV
&DSLWDO([SHQGLWXUH
6HJPHQWFDSLWDO
H[SHQGLWXUH
8QDOORFDWHGFDSLWDO
H[SHQGLWXUH
7RWDOFDSLWDO
H[SHQGLWXUH
'HSUHFLDWLRQDQG
$PRUWLVDWLRQ
6HJPHQWGHSUHFLDWLRQ
DQGDPRUWLVDWLRQ
8QDOORFDWHG
GHSUHFLDWLRQDQG
DPRUWLVDWLRQ
7RWDOGHSUHFLDWLRQDQG
DPRUWLVDWLRQ
6LJQLILFDQW1RQ&DVK
([SHQGLWXUH
6HJPHQW6LJQLILFDQW
1RQ&DVK([SHQGLWXUH
8QDOORFDWHGQRQFDVK
H[SHQGLWXUH
7RWDO6LJQLILFDQW1RQ
&DVK([SHQGLWXUH
&RQVROLGDWHG)LQDQFLDO6WDWHPHQWV
127(6727+(&2162/,'$7('),1$1&,$/67$7(0(176
*(2*5$3+,&$/6(*0(17 `LQODFV
3DUWLFXODUV ,QGLD 5HVWRIWKHZRUOG 7RWDO
&XUUHQW\HDU 3UHYLRXV<HDU &XUUHQW\HDU 3UHYLRXV<HDU &XUUHQW\HDU 3UHYLRXV<HDU
6HJPHQW5HYHQXH
&DUU\LQJFRVWRIVHJPHQWDVVHWV
$GGLWLRQVWR)L[HG$VVHWVDQG
,QWDQJLEOH$VVHWV
27+(5',6&/2685(6
6HJPHQWVKDYHEHHQLGHQWLILHGLQOLQHZLWKWKH$FFRXQWLQJ6WDQGDUGRQ6HJPHQW5HSRUWLQJ$6WDNLQJLQWRDFFRXQWWKH
RUJDQLVDWLRQVWUXFWXUHDVZHOODVWKHGLIIHUHQWLDOULVNVDQGUHWXUQVRIWKHVHVHJPHQWV
7KH&RPSDQ\KDVGLVFORVHG%XVLQHVV6HJPHQWDVWKHSULPDU\VHJPHQW
%XVLQHVV6HJPHQWDQGW\SHVRI3URGXFWVDQGVHUYLFHVV
D7H[WLOH %UDQGHG)DEULF
E'HQLP 6KLUWLQJ 'HQLPDQG6KLUWLQJIDEULF%WR%
F$SSDUHO %UDQGHG5HDG\PDGH*DUPHQWV
G*DUPHQWLQJ *DUPHQWPDQXIDFWXULQJ
H7RROV +DUGZDUH 3RZHU +DQG7RROV
I$XWR&RPSRQHQWV &RPSRQHQWV )RUJLQJ
J2WKHUV 1RQ6FKHGXOHG$LUOLQHRSHUDWLRQVDQG5HDO(VWDWHGHYHORSPHQW
,QWHU6HJPHQWUHYHQXHVDUHUHFRJQLVHGDWVDOHVSULFH
7KH6HJPHQW5HYHQXHV5HVXOWV$VVHWVDQG/LDELOLWLHVLQFOXGHWKHUHVSHFWLYHDPRXQWVLGHQWLILDEOHWRHDFKRIWKHVHJPHQW
DQGDPRXQWVDOORFDWHGRQDUHDVRQDEOHEDVLV
$VDW $VDW
VW0DUFK VW0DUFK
,QYHVWPHQWVLQHTXLW\VKDUHVRI$VVRFLDWHV
D 37-D\ND\)LOHV,QGRQHVLD
$GG6KDUHRIDFFXPXODWHGUHVHUYHVSURILWV
$GG6KDUHRIFXUUHQWSURILWV
E -.,QYHVWR7UDGH,QGLD/LPLWHG
$GG6KDUHRIDFFXPXODWHGUHVHUYHVSURILWV
$GG6KDUHRIFXUUHQWSURILWV
F 5DGKD.UVKQD)LOPV/LPLWHGLQFOXGLQJJRRGZLOO` ODFV
%HLQJSURYLVLRQPDGHIRUGLPLQXWLRQLQWKHYDOXHRILQYHVWPHQWV
'HWDLOVRI'HILQHG%HQHILW3ODQ
D 7KH&RPSDQ\KDVUHFRJQLVHG`/DFV3UHYLRXV<HDU`/DFVLQWKH3URILW /RVVIRUWKH\HDUHQGHGVW0DUFK
XQGHU'HILQHG&RQWULEXWLRQ3ODQV
E 'HWDLOVRI'HILQHG%HQHILW3ODQ
&RQVROLGDWHG)LQDQFLDO6WDWHPHQWV
127(6727+(&2162/,'$7('),1$1&,$/67$7(0(176
`LQODFV
6U 3$57,&8/$56 VW0DUFK VW0DUFK
12 *UDWXLW\ 3HQVLRQ 3URYLGHQW *UDWXLW\ 3HQVLRQ 3URYLGHQW
)XQG
)XQG
&RPSRQHQWVRI(PSOR\HU([SHQVH
D &XUUHQW6HUYLFH&RVW
E ,QWHUHVW&RVW
F ([SHFWHG5HWXUQRQ3ODQ$VVHWV
G $FWXDULDO*DLQ/RVV
H 3DVW6HUYLFH&RVW
I 'LIIHUHQFHLQIDLUYDOXHRIIXQGHGDVVHVWVDQGREOLJDWLRQ
DWWKHEHJLQQLQJRIWKH\HDU
J 7RWDO H[SHQVH*DLQ UHFRJQLVHG LQ WKH 3URILW DQG /RVV
$FFRXQW
1HW$VVHW/LDELOLW\UHFRJQLVHGLQ%DODQFH6KHHW
D 3UHVHQW9DOXHRI2EOLJDWLRQDVDWWKHFORVHRIWKH\HDU
E )DLU9DOXHRI3ODQ$VVHWVDVDWWKHFORVHRIWKH\HDU 1$ 1$
F $VVHW/LDELOLW\UHFRJQLVHGLQWKH%DODQFH6KHHW
&KDQJH LQ 'HILQHG %HQHILW 2EOLJDWLRQ '%2 GXULQJ WKH \HDU
HQGHGDVRQVW0DUFK
D 3UHVHQW 9DOXH RI 2EOLJDWLRQ DV DW WKH EHJLQQLQJ RI WKH
\HDU
E /LDELOLWLHVWUDQVIHUUHGLQ
F &XUUHQW6HUYLFH&RVW
G ,QWHUHVW&RVW
H (PSOR\HHV&RQWULEXWLRQ
I $FWXDULDO*DLQ/RVV
J 3DVW6HUYLFH&RVW
K %HQHILWV3DLG
3UHVHQW9DOXHRI2EOLJDWLRQDVDWWKHFORVHRIWKH\HDU
&KDQJHVLQWKH)DLU9DOXHRI3ODQ$VVHWV
D 3UHVHQW 9DOXH RI 3ODQ $VVHWV DV DW WKH EHJLQQLQJ RI WKH 1$ 1$
\HDU
E $VVHWVWUDQVIHUUHGLQ 1$ 1$
F ([SHFWHG5HWXUQRQ3ODQ$VVHWV 1$ 1$
G $FWXDULDO*DLQ/RVV 1$ 1$
H (PSOR\HU&RQWULEXWLRQ 1$ 1$
I (PSOR\HHV&RQWULEXWLRQ 1$ 1$
J $FWXDO&RPSDQ\&RQWULEXWLRQ 1$
K /LDELOLWLHVDVVXPHGRQ$FTXLVLWLRQ6HWWOHGRQ'LYHVWLWXUH 1$ 1$
L %HQHILWV3DLG 1$ 1$
M )DLU9DOXHRI3ODQ$VVHWVDVDWWKHFORVHRIWKH\HDU 1$ 1$
([SHFWHG(PSOR\HU¶V&RQWULEXWLRQIRUQH[W\HDU
3HUFHQWDJHRIHDFK&DWHJRU\RI3ODQ$VVHWVWRWRWDO)DLU9DOXH
RI3ODQ$VVHWVDVDWVW0DUFK
3ODQ$VVHWVDVDWWKHFORVHRIWKH\HDU
D *RYHUQPHQW6HFXULWLHV
E &RUSRUDWH%RQGV
F ,QVXUHU0DQDJHG)XQGV
G 2WKHUV
$FWXDULDO$VVXPSWLRQV
*5$78,7<$1'3(16,21$1'3529,'(17)81'
D 'LVFRXQW5DWHSHUDQQXP
E ([SHFWHG5DWHRI5HWXUQRQ$VVHWVSHUDQQXP 1$ 1$
F 6DODU\(VFDODWLRQ5DWH,QWHUHVWUDWHJXDUDQWHH
'HILQHG%HQHILW3ODQIRUSDVW<HDUV
$ *5$78,7<
1HW$VVHW/LDELOLW\UHFRJQLVHGLQWKH%DODQFH6KHHW
D 3UHVHQW9DOXHRI2EOLJDWLRQDVDWWKHFORVHRIWKH\HDU
&RQVROLGDWHG)LQDQFLDO6WDWHPHQWV
127(6727+(&2162/,'$7('),1$1&,$/67$7(0(176
`LQODFV
6U 3$57,&8/$56 VW0DUFK VW0DUFK
12 *UDWXLW\ 3HQVLRQ 3URYLGHQW *UDWXLW\ 3HQVLRQ 3URYLGHQW
)XQG
)XQG
E )DLUYDOXHRISODQDVVHWDVDWWKHFORVHRIWKH\HDU
F $VVHW/LDELOLW\UHFRJQLVHGLQWKH%DODQFH6KHHW
&KDQJH LQ 'HILQHG %HQHILW 2EOLJDWLRQ'%2 GXULQJ WKH
\HDUHQGHG
$FWXDULDO*DLQ/RVV
&KDQJHVLQWKHIDLUYDOXHRI3ODQ$VVHWV
$FWXDULDO*DLQ/RVV
% 3(16,21
D 3UHVHQW9DOXHRI2EOLJDWLRQDVDWWKHFORVHRIWKH\HDU
E )DLUYDOXHRISODQDVVHWDVDWWKHFORVHRIWKH\HDU 1$ 1$ 1$ 1$ 1$
F $VVHW/LDELOLW\UHFRJQLVHGLQWKH%DODQFH6KHHW
&KDQJH LQ 'HILQHG %HQHILW 2EOLJDWLRQ'%2 GXULQJ WKH
\HDUHQGHG
$FWXDULDO*DLQ/RVV
&KDQJHVLQWKHIDLUYDOXHRI3ODQ$VVHWV
$FWXDULDO*DLQ/RVV 1$ 1$ 1$ 1$ 1$
& 3529,'(17)81'
D 3UHVHQW9DOXHRI2EOLJDWLRQDVDWWKHFORVHRIWKH\HDU
E )DLUYDOXHRISODQDVVHWDVDWWKHFORVHRIWKH\HDU
F $VVHW/LDELOLW\UHFRJQLVHGLQWKH%DODQFH6KHHW
&KDQJH LQ 'HILQHG %HQHILW 2EOLJDWLRQ'%2 GXULQJ WKH
\HDUHQGHG
$FWXDULDO*DLQ/RVV
&KDQJHVLQWKHIDLUYDOXHRI3ODQ$VVHWV
$FWXDULDO*DLQ/RVV
,QFDVHRIFHUWDLQHPSOR\HHVWKH3URYLGHQW)XQGFRQWULEXWLRQLVPDGHWRDWUXVWDGPLQLVWHUHGE\WKH&RPSDQ\,QWHUPVRIWKHJXLGDQFHQRWH
LVVXHGE\WKHLQVWLWXWHRI$FWXDULHVRI,QGLDWKHDFWXDU\KDVSURYLGHGDYDOXDWLRQRI3URYLGHQW)XQGOLDELOLW\EDVHGRQWKHDVVXPSWLRQVOLVWHG
DERYHDQGGHWHUPLQHGWKDWWKHUHLVQRVKRUWIDOODVDWVW0DUFK
7DNHVLQWRDFFRXQWWKHLQIODWLRQVHQLRULW\SURPRWLRQVDQGRWKHUUHOHYDQWIDFWRUV
7KH%RDUGRI'LUHFWRUVRIWKH&RPSDQ\LQ3UHYLRXV<HDUGHFLGHGWRZULWHRIIWKHVXSSRUWSURYLGHGWR5D\PRQG8&2'HQLP
3ULYDWH/LPLWHG58'3/D-RLQW9HQWXUH-9&RPSDQ\DJJUHJDWLQJ`ODFV'HEHQWXUH`ODFVDQG/RDQ`
ODFV$QDPRXQWDJJUHJDWLQJ`ODFVZDVSURYLGHGDJDLQVWWKHVH'HEHQWXUHVDQG/RDQVLQHDUOLHU\HDUVZKLFKZDVDOVR
ZULWWHQEDFNLQWKH3UHYLRXV<HDU7KHVHDPRXQWVZHUHGLVFORVHGDV³([FHSWLRQDOLWHPV´>5HIHUQRWH@7KH%RDUGRI'LUHFWRUVRI
WKH&RPSDQ\KDGDOVRZDLYHGLQWHUHVWIRUWKH3UHYLRXV<HDUDJJUHJDWLQJ`ODFVRQWKHVH'HEHQWXUHVDQG/RDQV$PRXQW
LQWKLVQRWHDUHSURSRUWLQDWHO\VKRZQLQ-RXQW9HQWXUH
3UHYLRXV<HDU¶VILJXUHVKDYHEHHQUHJURXSHGUHFODVVLILHGZKHUHYHUQHFHVVDU\WRFRUUHVSRQGZLWKWKHFXUUHQW\HDU¶VFODVVLILFDWLRQ
GLVFORVXUH
6LJQLILFDQW DFFRXQWLQJ SROLFLHV DQG SUDFWLFHV DGRSWHG E\ WKH &RPSDQ\ DUH GLVFORVHG LQ WKH VWDWHPHQW DQQH[HG WR WKHVH
ILQDQFLDOVWDWHPHQWVDV$QQH[XUH,
$VSHURXU5HSRUWRIHYHQGDWH
0XPEDLWK$SULO 0XPEDLWK$SULO
&RQVROLGDWHG)LQDQFLDO6WDWHPHQWV
127(6727+(&2162/,'$7('),1$1&,$/67$7(0(176
$11(;85(, LLL 7KH H[FHVV RI WKH FRVW WR WKH 3DUHQW &RPSDQ\ RI LWV
LQYHVWPHQWVLQHDFKRIWKHVXEVLGLDULHVRYHULWVVKDUHRI
67$7(0(17 2) 6,*1,),&$17 $&&2817,1* 32/,&,(6 $1' HTXLW\ LQ WKH UHVSHFWLYH VXEVLGLDU\ RQ WKH DFTXLVLWLRQ
35$&7,&(6 GDWH LV UHFRJQLVHG LQ WKH ILQDQFLDO VWDWHPHQWV DV
DQQH[HG WR DQG IRUPLQJ SDUW RI WKH $FFRXQWV IRU WKH \HDU JRRGZLOO DQG DPRUWLVHG RYHU D SHULRG RI WHQ \HDUV
HQGHGVW0DUFK )OXFWXDWLRQWRJRRGZLOOLQUHVSHFWRIIRUHLJQVXEVLGLDU\
DULVLQJVXEVHTXHQWWRDFTXLVLWLRQRQWUDQVODWLRQDWWKH
, %$6,62)35(3$5$7,212)),1$1&,$/67$7(0(176 \HDU HQG UDWH LV LQFOXGHG LQ WKH FXUUHQF\ IOXFWXDWLRQ
L 7KHILQDQFLDOVWDWHPHQWVRIWKHVXEVLGLDULHVXVHGLQWKH UHVHUYH
FRQVROLGDWLRQDUHGUDZQXSWRWKHVDPHUHSRUWLQJGDWH
,,, 5(&2*1,7,212),1&20($1'(;3(1',785(
DV WKDW RI WKH 3DUHQW &RPSDQ\ LH \HDU HQGHG VW
0DUFK &HUWDLQ IRUHLJQ VXEVLGLDULHV IROORZ -DQXDU\ WR L 5HYHQXHV,QFRPHV DQG &RVWV([SHQGLWXUH DUH
'HFHPEHUDVWKHLUILQDQFLDO\HDU,QWKHFDVHRIWKHVH JHQHUDOO\ DFFRXQWHG RQ DFFUXDO DV WKH\ DUH HDUQHG
IRUHLJQ VXEVLGLDULHV WKH &RPSDQ\ KDV UHGUDZQ WKHLU RULQFXUUHG
ILQDQFLDOVWDWHPHQWVIRUWKH\HDUHQGHGVW0DUFK
LL 6DOH RI *RRGV LV UHFRJQLVHG RQ WUDQVIHU RI VLJQLILFDQW
LL 7KHVH ILQDQFLDO VWDWHPHQWV KDYH EHHQ SUHSDUHG LQ ULVNVDQGUHZDUGVRIRZQHUVKLSZKLFKLVJHQHUDOO\RQWKH
DFFRUGDQFHZLWKWKHJHQHUDOO\DFFHSWHGDFFRXQWLQJ GLVSDWFKRIJRRGV
SULQFLSOHVLQ,QGLDXQGHUWKHKLVWRULFDOFRVWFRQYHQWLRQ
RQ DFFUXDO EDVLV H[FHSW IRU FHUWDLQ WDQJLEOH DVVHWV LLL ([SRUW ,QFHQWLYHV XQGHU WKH ³'XW\ 'UDZ EDFN
ZKLFKDUHEHLQJFDUULHGDWUHYDOXHGDPRXQWV3XUVXDQW 6FKHPH´HWFLVDFFRXQWHGLQWKH\HDURIH[SRUW
WR VHFWLRQ RI WKH &RPSDQLHV $FW UHDG ZLWK ,9 ),;('$66(76
5XOHRIWKH&RPSDQLHV$FFRXQWV5XOHVWLOOWKH
VWDQGDUGVRIDFFRXQWLQJRUDQ\DGGHQGXPWKHUHWRDUH 7DQJLEOH$VVHWV
SUHVFULEHGE\&HQWUDO*RYHUQPHQWLQFRQVXOWDWLRQDQG
7DQJLEOH $VVHWV DUH VWDWHG DW DFTXLVLWLRQ FRVW QHW RI
UHFRPPHQGDWLRQ RI WKH 1DWLRQDO )LQDQFLDO 5HSRUWLQJ
DFFXPXODWHGGHSUHFLDWLRQDQGDFFXPXODWHGLPSDLUPHQW
$XWKRULW\ WKH H[LVWLQJ $FFRXQWLQJ 6WDQGDUGV QRWLILHG
ORVVHV
XQGHUWKH&RPSDQLHV$FWVKDOOFRQWLQXHWRDSSO\
&RQVHTXHQWO\ WKHVH ILQDQFLDO VWDWHPHQWV KDYH EHHQ 6XEVHTXHQW H[SHQGLWXUHV UHODWHG WR DQ LWHP RI IL[HG DVVHW
SUHSDUHG WR FRPSO\ LQ DOO PDWHULDO DVSHFWV ZLWK WKH DUH DGGHG WR LWV ERRN YDOXH RQO\ LI WKH\ LQFUHDVH WKH
DFFRXQWLQJ VWDQGDUGV QRWLILHG XQGHU 6HFWLRQ & IXWXUHEHQHILWVIURPWKHH[LVWLQJDVVHWEH\RQGLWVSUHYLRXVO\
RI &RPSDQLHV $FW >&RPSDQLHV $FFRXQWLQJ DVVHVVHGVWDQGDUGRISHUIRUPDQFH
6WDQGDUGV5XOHVDVDPHQGHG@DQGRWKHUUHOHYDQW
SURYLVLRQVRIWKH&RPSDQLHV$FW ,WHPVRIIL[HGDVVHWVWKDWKDYHEHHQUHWLUHGIURPDFWLYHXVH
DQG DUH KHOG IRU GLVSRVDO DUH VWDWHG DW WKH ORZHU RI WKHLU
LLL $OO WKH DVVHWV DQG OLDELOLWLHV KDYH EHHQ FODVVLILHG DV QHW ERRN YDOXH DQG QHW UHDOLVDEOH YDOXH DQG DUH VKRZQ
FXUUHQW RU QRQ FXUUHQW DV SHU WKH &RPSDQ\¶V QRUPDO VHSDUDWHO\LQWKHILQDQFLDOVWDWHPHQWV$Q\H[SHFWHGORVVLV
RSHUDWLQJF\FOHDQGRWKHUFULWHULDVHWRXWLQ6FKHGXOH UHFRJQLVHGLPPHGLDWHO\LQWKH6WDWHPHQWRI3URILWDQG/RVV
,,, WR WKH &RPSDQLHV $FW %DVHG RQ WKH QDWXUH
RI SURGXFWV DQG WKH WLPH EHWZHHQ WKH DFTXLVLWLRQ /RVVHV DULVLQJ IURP WKH UHWLUHPHQW RI DQG JDLQV RU ORVVHV
RI DVVHWV IRU SURFHVVLQJ DQG WKHLU UHDOL]DWLRQ LQ FDVK DULVLQJIURPGLVSRVDORIIL[HGDVVHWVZKLFKDUHFDUULHGDWFRVW
DQG FDVK HTXLYDOHQW WKH &RPSDQ\ KDV DVFHUWDLQHG DUHUHFRJQLVHGLQWKH6WDWHPHQWRI3URILWDQG/RVV
LWV RSHUDWLQJ F\FOH WR EH PRQWKV IRU WKH SXUSRVH
,QWDQJLEOH$VVHWV
RI FXUUHQW QRQ FXUUHQW FODVVLILFDWLRQ RI DVVHWV DQG
OLDELOLWLHV ,QWDQJLEOH DVVHWV DUH VWDWHG DW DFTXLVLWLRQ FRVW QHW RI
DFFXPXODWHG DPRUWL]DWLRQ DQG DFFXPXODWHG LPSDLUPHQW
,, 35,1&,3/(62)&2162/,'$7,21
ORVVHV LI DQ\ ,QWDQJLEOH DVVHWV DUH DPRUWLVHG RQ D VWUDLJKW
L 7KHILQDQFLDOVWDWHPHQWVRIWKH3DUHQW&RPSDQ\DQG OLQHEDVLVRYHUWKHLUHVWLPDWHGXVHIXOOLYHV
LWV VXEVLGLDULHV KDYH EHHQ FRQVROLGDWHG RQ D OLQH
E\OLQH EDVLV E\ DGGLQJ WRJHWKHU WKH ERRN YDOXHV RI *DLQV RU ORVVHV DULVLQJ IURP WKH UHWLUHPHQW RU GLVSRVDO
OLNH LWHPV RI DVVHWV OLDELOLWLHV LQFRPH DQG H[SHQVHV SURFHHGV DQG WKH FDUU\LQJ DPRXQW RI WKH DVVHW DQG
DIWHU HOLPLQDWLQJ LQWUDJURXS EDODQFHV LQWUDJURXS UHFRJQLVHGDVLQFRPHRUH[SHQVHLQWKH6WDWHPHQWRI3URILW
WUDQVDFWLRQVDQGWKHXQUHDOLVHGSURILWV /RVV
&RQVROLGDWHG)LQDQFLDO6WDWHPHQWV
127(6727+(&2162/,'$7('),1$1&,$/67$7(0(176
LL (IIHFWLYH VW $SULO WKH &RPSDQ\ GHSUHFLDWHV LWV 9,,, )25(,*1&855(1&<75$16/$7,216
IL[HGDVVHWVRYHUWKHXVHIXOOLIHLQWKHPDQQHUSUHVFULEHG
)RU WKH SXUSRVH RI FRQVROLGDWLRQ WKH DPRXQWV DSSHDULQJ
LQ6FKHGXOH,,RIWKH$FWDVDJDLQVWWKHHDUOLHUSUDFWLFH LQ IRUHLJQ FXUUHQFLHV LQ WKH )LQDQFLDO 6WDWHPHQWV RI WKH
RIGHSUHFLDWLQJDWWKHUDWHVSUHVFULEHGLQ6FKHGXOH;,9 IRUHLJQ VXEVLGLDULHV DUH WUDQVODWHG DW WKH IROORZLQJ UDWHV RI
RIWKH&RPSDQLHV$FW H[FKDQJH
LLL %DVHG RQ DQ LQGHSHQGHQW WHFKQLFDO HYDOXDWLRQ WKH D $YHUDJHUDWHVIRUWKHLQFRPHVDQGH[SHQGLWXUH
XVHIXOOLIHRI3ODQWDQG0DFKLQHU\KDVEHHQHVWLPDWHG E 7KH\HDUHQGUDWHVIRUWKHDVVHWVDQGOLDELOLWLHV
DV \HDUV RQ D VLQJOH VKLIW EDVLV ZKLFK LV GLIIHUHQW
IURPWKDWSUHVFULEHGLQ6FKHGXOH,,RIWKH$FW ,; )25(,*1&855(1&<75$16$&7,216%<,1',$1&203$1,(6
L $OOWUDQVDFWLRQVLQIRUHLJQFXUUHQF\DUHUHFRUGHGDWWKH
LY ,QFDVHRISUHRZQHGDVVHWVWKHXVHIXOOLIHLVHVWLPDWHG
UDWHV RI H[FKDQJH SUHYDLOLQJ RQ WKH GDWHV ZKHQ WKH
RQDFDVHWRFDVHEDVLV UHOHYDQWWUDQVDFWLRQVWDNHSODFH
Y &RVW RI 7HFKQLFDO .QRZKRZ FDSLWDOLVHG LV DPRUWLVHG LL 0RQHWDU\LWHPVLQWKHIRUPRI/RDQV&XUUHQW$VVHWVDQG
RYHUDSHULRGRIVL[\HDUVWKHUHRI &XUUHQW /LDELOLWLHV LQ IRUHLJQ FXUUHQF\ RXWVWDQGLQJ DW
WKHFORVHRIWKH\HDUDUHWUDQVODWHGLQ,QGLDQ&XUUHQF\
YL &RVWRI6RIWZDUHFDSLWDOLVHGLVDPRUWLVHGRYHUDSHULRG DWWKHDSSOLFDEOHUDWHVRIH[FKDQJHSUHYDLOLQJRQWKH
RIWKUHH\HDUV GDWH RI WKH %DODQFH 6KHHW 5HVXOWDQW JDLQ RU ORVV LV
DFFRXQWHGGXULQJWKH\HDU
YLL &RVWRI/HDVHKROG/DQGLVDPRUWLVHGRYHUWKHSHULRGRI
OHDVH LLL 7KH SUHPLXP RU GLVFRXQW DULVLQJ DW WKH LQFHSWLRQ RI
IRUZDUG H[FKDQJH FRQWUDFWV HQWHUHG LQWR WR KHGJH
YLLL'HSUHFLDWLRQ RQ DGGLWLRQV WR DVVHWV RU RQ VDOH DQ H[LVWLQJ DVVHWOLDELOLW\ LV DPRUWLVHG DV H[SHQVH
GLVFDUGPHQWRIDVVHWVLVFDOFXODWHGSURUDWDIURPWKH RU LQFRPH RYHU WKH OLIH RI WKH FRQWUDFW ([FKDQJH
PRQWKRIVXFKDGGLWLRQRUXSWRWKHPRQWKRIVXFKVDOH GLIIHUHQFHV RQ VXFK D FRQWUDFW DUH UHFRJQLVHG LQ WKH
GLVFDUGPHQWDVWKHFDVHPD\EH 6WDWHPHQWRI3URILWDQG/RVVLQWKHUHSRUWLQJSHULRGLQ
ZKLFK WKH H[FKDQJH UDWHV FKDQJH $Q\ SURILW RU ORVV
9, ,19(670(176 DULVLQJ RQ FDQFHOODWLRQ RU UHQHZDO RI VXFK D IRUZDUG
H[FKDQJH FRQWUDFW DUH UHFRJQLVHG DV LQFRPH RU DV
,QYHVWPHQWV WKDW DUH UHDGLO\ UHDOLVDEOH DQG DUH LQWHQGHG H[SHQVHIRUWKHSHULRG
WR EH KHOG IRU QRW PRUH WKDQ RQH \HDU IURP WKH GDWH RQ
)RUZDUG H[FKDQJH FRQWUDFWV RXWVWDQGLQJ DV DW WKH
ZKLFKVXFKLQYHVWPHQWVDUHPDGHDUHFODVVLILHGDVFXUUHQW
\HDU HQG RQ DFFRXQW RI ILUP FRPPLWPHQWKLJKO\
LQYHVWPHQWV $OO RWKHU LQYHVWPHQWV DUH FODVVLILHG DV ORQJ SUREDEOH IRUHFDVW WUDQVDFWLRQV DUH PDUNHG WR PDUNHW
WHUP LQYHVWPHQWV &XUUHQW LQYHVWPHQWV DUH FDUULHG DW FRVW DQGWKHORVVHVLIDQ\DUHUHFRJQLVHGLQWKH6WDWHPHQW
RUIDLUYDOXHZKLFKHYHULVORZHU/RQJWHUPLQYHVWPHQWVDUH RI3URILWDQG/RVVDQGJDLQVDUHLJQRUHGLQDFFRUGDQFH
FDUULHG DW FRVW +RZHYHU SURYLVLRQ IRU GLPLQXWLRQ LV PDGH ZLWK WKH $QQRXQFHPHQW RI ,QVWLWXWH RI &KDUWHUHG
WRUHFRJQLVHDGHFOLQHRWKHUWKDQWHPSRUDU\LQWKHYDOXH $FFRXQWDQWV RI ,QGLD RQ µ$FFRXQWLQJ IRU 'HULYDWLYHV¶
RI WKH LQYHVWPHQWV VXFK UHGXFWLRQ EHLQJ GHWHUPLQHG DQG LVVXHGLQ0DUFK
PDGHIRUHDFKLQYHVWPHQWLQGLYLGXDOO\ LY 7UDQVDFWLRQVFRYHUHGE\FURVVFXUUHQF\VZDSFRQWUDFWV
WR EH VHWWOHG RQ IXWXUH GDWHV DUH UHFRJQLVHG DW WKH
9,, 9$/8$7,212),19(1725,(6
UDWHV RI H[FKDQJH RI WKH XQGHUO\LQJ IRUHLJQ FXUUHQF\
L 7KH LQYHQWRULHV UHVXOWLQJ IURP LQWUDJURXS WUDQVDFWLRQV SUHYDLOLQJ RQ WKH GDWH RI WKH %DODQFH 6KHHW (IIHFWV
KDYH EHHQ VWDWHG DW FRVW DIWHU GHGXFWLQJ XQUHDOLVHG DULVLQJRXWRIVZDSFRQWUDFWVDUHDFFRXQWHGDGMXVWHG
RQWKHGDWHRIVHWWOHPHQW
SURILWRQVXFKWUDQVDFWLRQV
; (03/2<((%(1(),76
LL *RRGVLQWUDQVLWDUHVWDWHGµDWFRVW¶
'HILQHG&RQWULEXWLRQ3ODQVVXFKDV3URYLGHQW)XQGHWFDUH
LLL ,QYHQWRULHVDUHVWDWHGµDWFRVWRUQHWUHDOLVDEOHYDOXH¶ FKDUJHGWRWKHVWDWHPHQW3URILW /RVV$FFRXQWDVLQFXUUHG
ZKLFKHYHULVORZHU 'HILQHGEHQHILW3ODQV7KHSUHVHQWYDOXHRIWKHREOLJDWLRQ
XQGHU VXFK SODQ LV GHWHUPLQHG EDVHG RQ DQ DFWXDULDO
LY &RVW FRPSULVH RI DOO FRVWV LQFXUUHG LQ EULQJLQJ WKH YDOXDWLRQXVLQJWKH3URMHFWHG8QLW&UHGLW0HWKRG$FWXDULDO
LQYHQWRULHVWRWKHLUSUHVHQWORFDWLRQDQGFRQGLWLRQ&RVW JDLQV DQG ORVVHV DULVLQJ RQ VXFK YDOXDWLRQ DUH UHFRJQLVHG
IRUPXODH XVHG DUH HLWKHU µDYHUDJH FRVW¶ RU µVSHFLILF LPPHGLDWHO\LQWKH3URILW /RVV$FFRXQW,QFDVHRIIXQGHG
LGHQWLILFDWLRQ¶ DV DSSOLFDEOH 'XH DOORZDQFH LV GHILQHG EHQHILW SODQV WKH IDLU YDOXH RI WKH SODQ DVVHWV
HVWLPDWHGDQGPDGHIRUGHIHFWLYHDQGREVROHWHLWHPV LV UHGXFHG IURP WKH JURVV REOLJDWLRQ XQGHU WKH GHILQHG
ZKHUHYHUQHFHVVDU\EDVHGRQWKHSDVWH[SHULHQFH EHQHILW SODQV WR UHFRJQLVH WKH REOLJDWLRQ RQ QHW EDVLV
2WKHU /RQJ WHUP (PSOR\HH %HQHILWV DUH UHFRJQLVHG LQ WKH
Y $OO WKH FRVWV LQFXUUHG RQ XQLQYRLFHG FRQYHUVLRQ VDPHPDQQHUDV'HILQHG%HQHILW3ODQV
FRQWUDFWVDUHFDUULHGIRUZDUGDV³$FFXPXODWHG&RVWV 7HUPLQDWLRQEHQHILWVDUHUHFRJQLVHGDVDQGZKHQLQFXUUHG
RQ &RQYHUVLRQ &RQWUDFWV´ DW ORZHU RI FRVW DQG QHW +RZHYHUWKHWHUPLQDWLRQEHQHILWVZKLFKIDOOGXHPRUHWKDQ
UHDOLVDEOHYDOXH WZHOYH PRQWKV DIWHU WKH %DODQFH 6KHHW DUH GLVFRXQWHG
XVLQJWKH\LHOGRQ*RYHUQPHQW%RQGV´
&RQVROLGDWHG)LQDQFLDO6WDWHPHQWV
;, %2552:,1*&2676 HVWLPDWHV DQG DVVXPSWLRQV WR EH PDGH WKDW DIIHFW WKH
UHSRUWHGDPRXQWVRIDVVHWVDQGOLDELOLWLHVRQWKHGDWHRIWKH
,QWHUHVWDQGRWKHUERUURZLQJFRVWVDWWULEXWDEOHWRTXDOLI\LQJ
ILQDQFLDOVWDWHPHQWVDQGWKHUHSRUWHGDPRXQWVRIUHYHQXHV
DVVHWV DUH FDSLWDOLVHG 2WKHU LQWHUHVW DQG ERUURZLQJ FRVWV
DQG H[SHQVHV GXULQJ WKH UHSRUWLQJ SHULRG 'LIIHUHQFHV
DUHFKDUJHGWRUHYHQXH
EHWZHHQDFWXDOUHVXOWVDQGHVWLPDWHVDUHUHFRJQLVHGLQWKH
;,, 7$;$7,21 SHULRGLQZKLFKWKHUHVXOWVDUHNQRZQPDWHULDOLVHG
L ,QFRPHWD[ H[SHQVH FRPSULVHV FXUUHQW WD[ DQG
;9,/($6(
GHIHUUHG WD[ FKDUJH RU FUHGLW 3URYLVLRQ IRU FXUUHQW
WD[ LV PDGH RQ WKH EDVLV RI WKH DVVHVVDEOH LQFRPH DW
$VDOHVVHH
WKH WD[ UDWH DSSOLFDEOH WR WKH UHOHYDQW DVVHVVPHQW
\HDU 7KH GHIHUUHG WD[ DVVHW DQG GHIHUUHG WD[ OLDELOLW\
/HDVHVLQZKLFKDVLJQLILFDQWSRUWLRQRIWKHULVNVDQGUHZDUGV
LV FDOFXODWHG E\ DSSO\LQJ WD[ UDWH DQG WD[ ODZV WKDW
RI RZQHUVKLS DUH UHWDLQHG E\ WKH OHVVRU DUH FODVVLILHG DV
KDYH EHHQ HQDFWHG RU VXEVWDQWLYHO\ HQDFWHG E\ WKH
RSHUDWLQJ OHDVHV 3D\PHQWV PDGH XQGHU RSHUDWLQJ OHDVHV
%DODQFH6KHHWGDWH'HIHUUHGWD[DVVHWVDULVLQJPDLQO\
DUHFKDUJHGWRWKH6WDWHPHQWRI3URILWDQG/RVVRQDVWUDLJKW
RQDFFRXQWRIEURXJKWIRUZDUGORVVHVDQGXQDEVRUEHG
OLQH EDVLV RYHU WKH SHULRG RI WKH OHDVH RU RWKHU V\VWHPDWLF
GHSUHFLDWLRQ XQGHU WD[ ODZV DUH UHFRJQLVHG RQO\ LI
EDVLVPRUHUHSUHVHQWDWLYHRIWKHWLPHSDWWHUQRIWKHXVHU¶V
WKHUH LV D YLUWXDO FHUWDLQW\ RI LWV UHDOLVDWLRQ VXSSRUWHG
E\ FRQYLQFLQJ HYLGHQFH 'HIHUUHG WD[ DVVHWV RQ EHQHILWV
DFFRXQW RI RWKHU WLPLQJ GLIIHUHQFHV DUH UHFRJQLVHG
$VDOHVVRU
RQO\WRWKHH[WHQWWKHUHLVDUHDVRQDEOHFHUWDLQW\RILWV
UHDOLVDWLRQ$WHDFK%DODQFH6KHHWGDWHWKHFDUU\LQJ
7KH&RPSDQ\KDVOHDVHGFHUWDLQWDQJLEOHDVVHWVDQGVXFK
DPRXQWRIGHIHUUHGWD[DVVHWVDUHUHYLHZHGWRUHDVVXUH
OHDVHVZKHUHWKH&RPSDQ\KDVVXEVWDQWLDOO\UHWDLQHGDOOWKH
UHDOLVDWLRQ0LQLPXP$OWHUQDWLYH7D[FUHGLW0$7&UHGLW
ULVNV DQG UHZDUGV RI RZQHUVKLS DUH FODVVLILHG DV RSHUDWLQJ
LVUHFRJQLVHGDVDQDVVHWRQO\ZKHQDQGWRWKHH[WDQW
OHDVHV /HDVH LQFRPH RQ VXFK RSHUDWLQJ OHDVHV DUH
WKHUH LV FRQYLQFLQJ HYLGHQFH WKDW WKH &RPSDQ\ ZLOO
UHFRJQLVHGLQWKH6WDWHPHQWRI3URILWDQG/RVVRQDVWUDLJKW
SD\ QRUPDO WD[ GXULQJ WKH VSHFLILHG SHULRG 6XFK
DVVHWLVUHYLHZHGDWHDFK%DODQFH6KHHWGDWHDQGWKH OLQH EDVLV RYHU WKH OHDVH WHUP RU RWKHU V\VWHPDWLF EDVLV
FDUU\LQJDPRXQWRIWKH0$7FUHGLWDVVHWLVZULWWHQGRZQ ZKLFKLVUHSUHVHQWDWLYHRIWKHWLPHSDWWHUQLQZKLFKEHQHILW
WRWKHH[WHQWWKHUHLVQRORQJHUDFRQYLQFLQJHYLGHQFH GHULYHGIURPWKHXVHRIWKHOHDVHGDVVHWLVGLPLQLVKHG,QLWLDO
WRWKHHIIHFWWKDWWKH&RPSDQ\ZLOOSD\QRUPDOLQFRPH GLUHFWFRVWVDUHUHFRJQLVHGDVDQH[SHQVHLQWKH6WDWHPHQW
WD[GXULQJWKHVSHFLILHGSHULRG RI3URILWDQG/RVVLQWKHSHULRGLQZKLFKWKH\DUHLQFXUUHG
&RQVROLGDWHG)LQDQFLDO6WDWHPHQWV
)RUP$2&
3XUVXDQWWRILUVWSURYLVRWRVXEVHFWLRQRIVHFWLRQUHDGZLWKUXOHRI&RPSDQLHV$FFRXQWV5XOHV
6WDWHPHQWFRQWDLQLQJVDOLHQWIHDWXUHVRIWKHILQDQFLDOVWDWHPHQWRIVXEVLGLDULHVDVVRFLDWHFRPSDQLHVMRLQWYHQWXUHV
3DUW³$´6XEVLGLDULHV `LQODFV
65 1DPHRIWKH 5HSRUWLQJSHULRG 5HSRUWLQJFXUUHQF\ 6KDUH 5HVHUYHV 7RWDO 7RWDO ,QYHVW 7XUQRYHU 3URILW 3URYLVLRQ 3URILWDIWHU 3URSRVHG RI
1R 6XEVLGLDU\ IRUWKHVXEVLGLDU\ DQG([FKDQJHUDWH FDSLWDO VXUSOXV DVVHWV /LDELOLWLHV PHQWV EHIRUH IRUWD[DWLRQ WD[DWLRQ 'LYLGHQG VKDUHKROGLQJ
FRQFHUQHGLI DVRQWKHODVWGDWH WD[DWLRQ
GLIIHUHQWIURP RIWKHUHOHYDQW
WKHKROGLQJ )LQDQFLDO\HDULQ
FRPSDQ\¶V WKHFDVHRIIRUHLJQ
UHSRUWLQJSHULRG VXEVLGLDULHV
&HOHEUDWLRQ$SSDUHO
/LPLWHG
&RORUSOXV)DVKLRQV
/LPLWHG
&RQVROLGDWHG)LQDQFLDO6WDWHPHQWV
(YHUEOXH$SSDUHO
/LPLWHG
-.)LOHV,QGLD/LPLWHG
-.7DODERW/LPLWHG
3DVKPLQD+ROGLQJV
/LPLWHG
5D\PRQG$SSDUHO
/LPLWHG
5D\PRQG:RROOHQ
2XWHUZHDU/LPLWHG
6FLVVRUV(QJLQHHULQJ
3URGXFWV/LPLWHG
6LOYHU6SDUN$SSDUHO
/LPLWHG
5D\PRQG(XURSH *%3 ,15
/LPLWHG
-D\ND\2UJ$* &+) ,15
5D\PRQG/X[XU\
&RWWRQV/LPLWHG
1RWHV
)LJXUHVIRU6FLVVRUV(QJLQHHULQJ3URGXFWV/LPLWHGDUHILJXUHVDIWHUFRQVROLGDWLRQZLWKLWVVXEVLGLDULHV5LQJ3OXV$TXD/LPLWHGDQG5 $/RJLVWLFV/LPLWHG
6KDUHFDSLWDO5HVHUYHV 6XUSOXV7RWDO$VVHWV7RWDO/LDELOLWLHVDQG,QYHVWPHQWVDUHWUDQVODWHGDWH[FKDQJHUDWHDVRQVW'HFHPEHUDV3RXQG6WHUOLQJ ` 6ZLVV)UDQFV `DQG
7XUQRYHU3URILWEHIRUHWD[DWLRQ3URYLVLRQIRUWD[DWLRQDQG3URILWDIWHUWD[DWLRQDUHWUDQVODWHGDWDQQXDODYHUDJHH[FKDQJHUDWHRI3RXQG6WHUOLQJ ` 6ZLVV)UDQFV `
3DUW³%´$VVRFLDWHVDQG-RLQW9HQWXUHV
6WDWHPHQWSXUVXDQWWR6HFWLRQRIWKH&RPSDQLHV$FWUHODWHGWR$VVRFLDWH&RPSDQLHVDQG-RLQW9HQWXUHV `LQODFV
65 1DPH RI $VVRFLDWHV /DWHVWDXGLWHG 6KDUHVRI$VVRFLDWH-RLQW9HQWXUHVKHOGE\WKH 'HVFULSWLRQ 5HDVRQZK\ 1HWZRUWK 3URILW/RVVIRUWKH\HDU
1R -RLQW9HQWXUHV %DODQFH6KHHW FRPSDQ\RQWKH\HDUHQG RIKRZWKHUH WKHDVVRFLDWH DWWULEXWDEOHWR
'DWH LVVLJQLILFDQW MRLQWYHQWXUHLV6KDUHKROGLQJDV
LQIOXHQFH QRWFRQVROLGDWHG SHUODWHVWDXGLWHG
%DODQFH6KHHW
1R $PRXQWRI,QYHVWPHQW ([WHQGRI L&RQVLGHUHGLQ L1RW
LQ$VVRFLDWHV-RLQW +ROGLQJ &RQVROLGDWLRQ &RQVLGHUHGLQ
9HQWXUH &RQVROLGDWLRQ
5D\PRQG8&2'HQLP 1$ 1$
3ULYDWH/LPLWHG
5RVH(QJLQHHUHG 1$ 1$
3URGXFWV,QGLD3YW
/WG
-.,QYHVWR7UDGH 1$ 1$
,QGLD/LPLWHG
37-D\ND\)LOHV 1$ 1$
,QGRQHVLD
5DGKD.UVKQD)LOPV 1$ 1$
/LPLWHG
06+,9.80$5 *$87$0+$5,6,1*+$1,$
&KLHI)LQDQFLDO2IILFHU &KDLUPDQDQG0DQDJLQJ'LUHFWRU
7+20$6)(51$1'(6 +681'(5
&RPSDQ\6HFUHWDU\ :KROHWLPH'LUHFWRU 0XPEDLWK$SULO
7(1<($5+,*+/,*+76
`LQODFV
,1&20(
6DOHVDQG2WKHU,QFRPH
,QFUHDVH'HFUHDVH
*URVV3URILWEHIRUHLQWHUHVW
DQGGHSUHFLDWLRQ
$VRI6DOHVDQG2WKHU
,QFRPH
1HW3URILW/RVVDIWHU7D[
$66(76(03/2<('
1HW)L[HG$VVHWV
,QYHVWPHQWV
1HW&XUUHQW$VVHWV
7RWDO
(48,7<)81'6$1'
($51,1*6
6KDUHKROGHUV¶)XQGV
6KDUHKROGHUV¶,QYHVWPHQWV
%RQXV6KDUHV
5HVHUYHV
7RWDO
&RQWULEXWLRQWR&RXQWU\¶V
([FKHTXHU
3HU(TXLW\6KDUHRI`
%RRN9DOXH
(DUQLQJV
'LYLGHQG 1LO 1LO
)LJXUHVDUHVWDWHGDVSHUWKH$QQXDO5HSRUWRI
&RQVROLGDWHG)LQDQFLDO6WDWHPHQWV