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Ykijec[hi je ]W_d [Whbo WYY[ii je ekh d[m fheZkYj bWkdY [i) fkhY Wi[ [nYbki_l[ fheZkYj Zhefi) WdZ jho ed eejm[Whl_hjkWbbo) Yh[Wj_d] khj [h [d]W][c[dj X[jm[[d ekh XhWdZ WdZ ekh Ykijec[h+:i e [Y[cX[h 0.) /-/0) ekh f oi_YWb h[jW_b Y Wdd[b Yedi_iji e 3- YecfWdo*ef[hWj[Z ijeh[i ifh[WZ WYheii i[l[dYekdjh_[i) m_j j [ cW eh_jo _d j [ Nd_j[Z LjWj[i+ P _b[ m[ Yedj_dk[ je l_[m h[jW_b ijeh[i Wi XhWdZ X[WYedi je _dYh[Wi[ ekh
XhWdZ WmWh[d[ii) Zh_l[ i_j[ jhW _Y) WdZ [dWXb[ ki je e [h Yheii*fbWj ehc i eff_d]) m[ fbWd je jho je efj_c_p[ ekh ijeh[ b[[jl_W j [ fbWdd[Z Ybeikh[ e .- je .2 ijeh[i _d /-/1 XWi[Z ed ekh h[l_[m e fhe _jWX_b_jo c[jh_Yi+ M [i[ WYj_edi m_bb Wbbem ki
je eYki ed [dikh_d] j Wj ekh h[jW_b ijeh[i Wh[ [ _Y_[djbo Zh_l_d] Ykijec[h WYgk_i_j_ed WdZ Yecckd_YWj_d] j [ XhWdZ _d W
Yedi_ij[dj WdZ [d]W]_d] cWdd[h je fhel_Z[ ekh Ykijec[hi m_j W i[Wcb[ii i eff_d] [nf[h_[dY[+
FVW_R BO_af 6W a_WPbaW [ Ea_OaSUf
Bd WZZ_j_ed je ekh Z_h[Yj Xki_d[ii) m[ i[b[Yj_l[bo Y eei[ j _hZ*fWhjo h[jW_b WdZ Z_ijh_Xkjeh fWhjd[hi _d j [ Nd_j[Z LjWj[iWdZ _dj[hdWj_edWbbo je i[bb ekh fheZkYji+
Hkh m eb[iWb[ ijhWj[]o _dYbkZ[i fWhjd[h_d] m_j i[b[Yj h[jW_b[hi _d j [ Nd_j[Z LjWj[i m e fkhY Wi[ ekh fheZkYji WdZ i[bbj [c l_W j [_h emd [ ecc[hY[ i_j[i WdZ h[jW_b ijeh[i) m _Y _dYh[Wi[i ekh XhWdZ WmWh[d[ii WdZ h[WY [i Ykijec[hi m [h[j [o Wh[+ Hkh Z_ijh_Xkjeh ijhWj[]o _dYbkZ[i Wffe_dj_d] [nYbki_l[ Z_ijh_Xkjehi _d Y[hjW_d _dj[hdWj_edWb cWha[ji) _dYbkZ_d]
WdWZW WdZ Lekj Deh[W) j Wj i[bb fheZkYji fkhY Wi[Z hec ki WYheii [ ecc[hY[) Xh_Ya WdZ cehjWh) WdZ m eb[iWb[
Y Wdd[bi _d j [_h h[if[Yj_l[ cWha[ji+FSQV[ Y Uf
P[ b[l[hW][ ceZ[hd j[Y debe]o WYheii f oi_YWb WdZ Z_]_jWb Y Wdd[bi m _Y [dWXb[i ki je h[bo ed fWhjd[hi ikY Wi
L ef_ o je ceh[ [ [Yj_l[bo iYWb[+ Me Yh[Wj[ ekh Z_]_jWb Ykijec[h [nf[h_[dY[) m[ b[l[hW][ W Yecced Yeh[ i[j e Wffb_YWj_edfhe]hWcc_d] _dj[h WY[i %y:IBiz& WdZ jeebi j Wj [dWXb[ beYWb_pWj_ed WdZ if[[Z*je*cWha[j+ P[ Wl[ W ief _ij_YWj[Z ZWjW
_d hWijhkYjkh[ WdZ jeebi[j j Wj Wbbemi ekh ]beXWb j[Wci je cWa[ _d ehc[Z Z[Y_i_edi WYheii a[o Wif[Yji e j [ Xki_d[ii+ M _ifem[hi cWdo Wh[Wi e ekh Xki_d[ii _dYbkZ_d] cWha[j_d]) Ykijec[h h[bWj_edi _f cWdW][c[dj) _dl[djeho fbWdd_d] WdZ
be]_ij_Yi) WdZ XWYa e _Y[ kdYj_edi+ :ZZ_j_edWbbo) je fhej[Yj WdZ i[Ykh[ i[di_j_l[ ZWjW ikY Wi Ykijec[h _d ehcWj_ed) m[[cfbeo ckbj_* WYjeh Wkj [dj_YWj_ed) W ik_j[ e i[Ykh_jo jeebi) ioij[ci ced_jeh_d] WdZ Wb[hj_d]) WkZ_j be]i) WdZ Yedjhebi
WYheii ekh cW eh ioij[ci) YehfehWj[ Z[l_Y[i) WdZ Xki_d[ii fheY[ii[i+Eb]]Yf 5VOW[ O[R A]S_OaW [Hkh kd_gk[ YecX_dWj_ed e iekhY_d]) cWdk WYjkh_d]) WdZ Z_ijh_Xkj_ed YWfWX_b_j_[i Yh[Wj[ W ekdZWj_ed hec m _Y m[
YWd Yedj_dk[ je _ddelWj[ WdZ iYWb[ WYheii j [ ]beX[+ Ljhed] h[bWj_edi _fi m_j ekh ikffb_[hi [dikh[ ekh h[bWj_l[bo icWbb
ikffbo Y W_d YWd cWa[ W Z_ [h[dY[ _d j [ Zh_l[ jemWhZ _ddelWj_ed WdZ b_] j[h _cfWYj ed j [ [dl_hedc[dj+ Hkh Z_ijh_Xkj_ed
d[jmeha) Yecfh_i[Z e i[l[d fh_cWho Z_ijh_Xkj_ed Y[dj[hi WYheii [_] j Yekdjh_[i %j [ Nd_j[Z LjWj[i) j [ Nd_j[Z D_d]Zec)

4

j [ G[j [hbWdZi) _dW) CWfWd WdZ G[m S[WbWdZ&) fkji ki Ybei[ je j [ Ykijec[h) Wbbem_d] ki je h[WY el[h 02 Yekdjh_[i _d W
cWjj[h e ZWoi m_j gk_Ya) h[b_WXb[ i[hl_Y[+t

ESPONSIBLE SOURCING PROGRAM AND SMALL TIG T KNIG T SUPPLY C AIN Hkh WffheWY je dWjkhWb cWj[h_Wbi _ddelWj_ed][d[hWj[i _] gkWb_jo _dfkji WdZ jhWY[WX_b_jo) [bf_d] [dikh[ j Wj ekh ikffbo Y W_d h[cW_di Wb_]d[Z m_j ekh XhWdZlWbk[i+ ;[YWki[ e j [ _] ijWdZWhZi m[ fhec_i[ ekh Yedikc[hi) m[ Xej fWhjd[h m_j Y[hj_ _YWj_ed XeZ_[i WdZ Ze
ekh emd meha je [dikh[ ekh ikffb_[hi Wh[ c[[j_d] ijWdZWhZi eh gkWb_jo) [j _YWb fhWYj_Y[i) WdZ [dl_hedc[djWb
ikijW_dWX_b_jo+t

7ANUFACTURING P[ Wl[ YWh[ kbbo i[b[Yj[Z W icWbb ]hekf e M_[h . WYjeh_[i Wi ekh fWhjd[hi je [bf ki cWa[
mehbZ*YbWii fheZkYji) [bf_d] je Z[l[bef j [ j[Y d_YWb [nf[hj_i[ d[[Z[Z je meha m_j ekh ikijW_dWXb[ cWj[h_Wbi l_W
Wd [nj[di_l[ _j[hWj_ed fheY[ii+ P[ Wl[ [ijWXb_i [Z Z[[f) bed]*ijWdZ_d] h[bWj_edi _fi Xo Z_h[Yjbo fWhjd[h_d] m_jj [_h Z[l[befc[dj) Yecc[hY_Wb_pWj_ed) cWdk WYjkh_d]) WdZ gkWb_jo j[Wci hec _Z[Wj_ed j hek] fheZkYj_ed) WdZ
Wl[ [cX[ZZ[Z ekh [cfbeo[[i m_j _d iec[ a[o WYjeh_[i je el[hi[[ j [ fheZkYj fheY[ii+ Hkh h[bWj_edi _f*XWi[ZWffheWY
Wi [bf[Z ki X[ d_cXb[ WdZ Zh_l[ b[n_X_b_jo WdZ W]_b_jo je h[WYj je Y Wd][i _d cWYhe[Yedec_Y
YedZ_j_edi) Ykijec[h Z[cWdZ) eh _dj[hdWb fh_eh_j_[i+P[ h[gk_h[ j Wj Wbb fWhjd[hi i_]d ekh Lkffb_[h eZ[ e edZkYj) eh Lkffb_[h eZ[) m _Y h[gk_h[i ekh ikffb_[hi je
ef[hWj[ _d kbb Yecfb_WdY[ m_j j [ Wffb_YWXb[ bWmi) hkb[i) WdZ h[]kbWj_edi e j [ Yekdjh_[i _d m _Y j [o ef[hWj[+
Hkh Lkffb_[h eZ[ ]e[i khj [h) ZhWm_d] kfed Bdj[hdWj_edWb EWXekh Hh]Wd_pWj_ed eh[ EWXeh LjWdZWhZi) _d ehZ[hje WZlWdY[ ieY_Wb WdZ [dl_hedc[djWb h[ifedi_X_b_jo+ P[ Wbie [nf[Yj ekh ikffb_[h WYjeh_[i je kdZ[hjWa[ Wd edi_j[
ieY_Wb Wii[iic[dj Xo Wd _dZ[f[dZ[dj) j _hZ*fWhjo ieY_Wb Wii[iic[dj _hc+ M [i[ ieY_Wb Wii[iic[dji [dikh[ ikffb_[hic[[j ekh c_d_ckc [nf[YjWj_edi m_j h[]WhZi je meha_d] YedZ_j_edi Wi if[Y_ _[Z _d ekh Lkffb_[h eZ[+ Bd WZZ_j_ed
je YedZkYj_d] ekh emd WkZ_ji m [d d[Y[iiWho) m[ iec[j_c[i WYY[fj WkZ_ji j Wj ki[ j _hZ*fWhjo) ckjkWbbo
h[Ye]d_p[Z ijWdZWhZi je h[ZkY[ WkZ_j Wj_]k[ Wj WYjeh_[i WdZ je [bf [dikh[ iW [) bWm kb) kcWd[) WdZ [j _YWb
cWdk WYjkh_d] fhWYj_Y[i+:i e [Y[cX[h 0.) /-/0) ekh eejm[Wh fheZkYji Wh[ cWdk WYjkh[Z _d O_[jdWc+ Hkh WffWh[b WdZ ej [h ded*eejm[Wh fheZkYji Wh[ fh_cWh_bo cWdk WYjkh[Z _d O_[jdWc WdZ I[hk) m_j_dW) j [ Nd_j[Z LjWj[i) WdZ @kWj[cWbW
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5

OGISTICS AND DISTRIBUTION P[ fh_eh_j_p[ Ykijec[h [nf[h_[dY[ m_j Z_ijh_Xkj_ed Y[dj[hi _d Wbb e ekh a[o cWha[ji je
cWdW][ f_Ya) fWYa) WdZ i _f WYj_l_j_[i) _dYbkZ_d] h[jW_b kb _bbc[dj WdZ h[jkhdi cWdW][c[dj+ P[ h[bo ieb[bo ed
j _hZ*fWhjo be]_ij_Yi fhel_Z[hi eh j [i[ Z_ijh_Xkj_ed Y[dj[hi) Wi m[bb Wi bWij*c_b[ YWhh_[hi je Z_ijh_Xkj[ _d_i [ZfheZkYji hec ekh mWh[ eki[ beYWj_edi je ekh ijeh[i WdZ _dZ_l_ZkWb ehZ[hi Z_h[Yjbo je Yedikc[hi+ Hkh N+L+
Xki_d[ii _i i[hl_Y[Z j hek] jme beYWj_edi _d D[djkYao WdZ Wb_ ehd_W j Wj [dWXb[ W gk_Ya Z_]_jWb Yb_Ya*je* ec[
m _b[ c_d_c_p_d] jhWdifehjWj_ed Yeiji WdZ YWhXed _cfWYj+]SaWaW [M [ cWha[j _d m _Y m[ fh_cWh_bo ef[hWj[ _d _i _] bo Yecf[j_j_l[+ Hkh Yecf[j_jehi _dYbkZ[ Wj b[j_Y WdZ b[_ikh[eejm[Wh YecfWd_[i) WdZ Wj b[j_Y WdZ b[_ikh[ WffWh[b YecfWd_[i+ M _i Yecf[j_j_ed jWa[i fbWY[ Xej _d f oi_YWb h[jW_bbeYWj_edi Wi m[bb Wi edb_d[+ P _b[ j _i cWha[j _i _] bo hW]c[dj[Z) cWdo e ekh Yecf[j_jehi Wh[ bWh][h) m_j ijhed]mehbZm_Z[ XhWdZ h[Ye]d_j_ed) WdZ Wl[ ikXijWdj_Wbbo ]h[Wj[h h[iekhY[i j Wd ki+ Bd WZZ_j_ed) WYY[ii je e i eh[
cWdk WYjkh_d] WdZ j [ ]hemj e Z_]_jWb Wl[ cWZ[ _j [Wi_[h eh d[m YecfWd_[i je [dj[h j [ cWha[ji _d m _Y m[ Yecf[j[)khj [h _dYh[Wi_d] Yecf[j_j_ed _d j [ eejm[Wh WdZ WffWh[b _dZkijh_[i+P[ X[b_[l[ m[ Wh[ m[bb*fei_j_ed[Z je Yecf[j[ _d j _i _dZkijho ]_l[d ekh kd_gk[ YecX_dWj_ed e _ddelWj_l[ cWj[h_Wbi
WdZ fheZkYji) fkhfei[*Zh_l[d b_ [ijob[ XhWdZ) Z[[f Yedd[Yj_ed m_j ekh Yecckd_jo e Ykijec[hi) ]beXWb l[hj_YWb h[jW_bZ_ijh_Xkj_ed e [h_d]) WdZ _d hWijhkYjkh[ h[WZo eh iYWb[+
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fhecej[ WdZ _ji Z_h[Yjehi Wl[ W Zkjo je cWdW][ j [ W W_hi e j [ YehfehWj_ed _d W cWdd[h j Wj XWbWdY[i j [ f[Ykd_Who_dj[h[iji e j [ YehfehWj_ed i ijeYa ebZ[hi) j [ X[ij _dj[h[iji e j ei[ cWj[h_Wbbo W [Yj[Z Xo j [ YehfehWj_ed i YedZkYj) WdZ
j [ if[Y_ _Y fkXb_Y X[d[ _j eh fkXb_Y X[d[ _ji _Z[dj_ _[Z _d j [ YehfehWj_ed i Y[hj_ _YWj[ e _dYehfehWj_ed+ : I; _i Wbie5h[gk_h[Z je Wii[ii _ji X[d[ _j f[h ehcWdY[ _dj[hdWbbo WdZ je Z_iYbei[ je _ji ijeYa ebZ[hi Wj b[Wij X_[dd_Wbbo W h[fehj Z[jW_b_d]
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ekh YecfWdo) _i [dl_hedc[djWb Yedi[hlWj_ed+
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UR EFFORTS TO TRANSITION OUR INTERNATIONAL GO TO MAR ET STRATEG FROM A DIRECT TO A DISTRIBUTOR MODEL MA NOT BE
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NE FACTOR IN OUR SUCCESS IS THE STRENGTH OF OUR BRAND IF WE ARE UNABLE TO MAINTAIN AND ENHANCE THE VALUE AND
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E OPERATE IN A HIGHL COMPETITIVE MAR ET AND THE SIZE AND RESOURCES OF SOME OF OUR COMPETITORS MA ALLOW THEM TOCOMPETE MORE EFFECTIVEL THAN WE CAN WHICH COULD RESULT IN A LOSS OF OUR MAR ET SHARE AND A DECREASE IN OUR NET
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E REL ON TECHNICAL AND MATERIALS INNOVATION TO OFFER HIGH UALIT PRODUCTS
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UR FOCUS ON USING SUSTAINABLE HIGH UALIT MATERIALS AND ENVIRONMENTALL FRIENDL MANUFACTURING PROCESSES AND
SUPPL CHAIN PRACTICES MA INCREASE OUR COST OF REVENUE AND HINDER OUR REVENUE GROWTH
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BUSINESS AND FINANCIAL RESULTS
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3F WE ARE UNABLE TO ANTICIPATE PRODUCT TRENDS AND CONSUMER PREFERENCES AND SUCCESSFULL DEVELOP AND INTRODUCE NEW
PRODUCTS WE MA NOT BE ABLE TO MAINTAIN OR INCREASE OUR REVENUE AND PROFITS
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fWhjd[hi ef[hWj_edi _d b_[k e eh _d WZZ_j_ed je h[jW_b ijeh[i ef[hWj[Z Xo ki) kf]hWZ[ ekh cWdW][c[dj _d ehcWj_ed ioij[ciWdZ ej [h fheY[ii[i WdZ j[Y debe]o) WdZ eXjW_d ceh[ ifWY[ eh ekh [nfWdZ_d] meha ehY[+ M _i [nfWdi_ed YekbZ _dYh[Wi[ j [ijhW_d ed ekh h[iekhY[i) [nfei[ ki je b[]Wb WdZ Yecfb_WdY[ h_ia WYheii d[m kh_iZ_Yj_edi) WdZ YWki[ ki je [nf[h_[dY[ef[hWj_d] Z_ _Ykbj_[i) _dYbkZ_d] Z_ _Ykbj_[i _d _h_d]) jhW_d_d]) WdZ cWdW]_d] Wd _dYh[Wi_d] dkcX[h e [cfbeo[[i)[if[Y_Wbbo je j [ [nj[dj j [ ]hemj _d ekh y beYaz [nfei[i ki je W ]h[Wj[h dkcX[h e kh_iZ_Yj_edi [cfbeoc[dj) [Wbj ) WdZ
iW [jo WdZ ej [h h[]kbWjeho WdZ Yecfb_WdY[ h[gk_h[c[dji+ :do e j [i[ eh ej [h Z_ _Ykbj_[i _d [ [Yj_l[bo cWdW]_d] ekh/0]hemj WdZ j [ _dYh[Wi[Z Yecfb[n_jo e ekh Xki_d[ii YekbZ h[ikbj _d j [ [hei_ed e ekh XhWdZ _cW][ m _Y YekbZ Wl[ WcWj[h_Wb WZl[hi[ [ [Yj ed ekh _dWdY_Wb YedZ_j_ed+
UR FINANCIAL RESULTS MA BE ADVERSEL AFFECTED IF SUBSTANTIAL INVESTMENTS IN BUSINESSES AND OPERATIONS INCLUDING IN OURRETAIL STORES FAIL TO PRODUCE E PECTED RETURNS
hec j_c[ je j_c[) m[ cWo _dl[ij _d j[Y debe]o) Xki_d[ii _d hWijhkYjkh[) d[m Xki_d[ii[i) fheZkYj e [h_d]) WdZ
cWdk WYjkh_d] _ddelWj_ed WdZ [nfWdi_ed e [n_ij_d] Xki_d[ii[i+ P[ [nf[Yj je Yedj_dk[ je [lWbkWj[ j [ dkcX[h WdZ][e]hWf _Y h[WY e ekh h[jW_b ijeh[i _d j [ i ehj* WdZ c_Z*j[hc WdZ _dl[ij _d W ijhWj[]_Y cWdd[h) _dYbkZ_d] _d Yedd[Yj_ed
m_j ekh ijhWj[]_Y jhWdi ehcWj_ed fbWd je ibem j [ fWY[ e ijeh[ ef[d_d]i _d j [ N+L+ WdZ jhWdi_j_ed ekh _dj[hdWj_edWb ]e*je*cWha[j ijhWj[]o je W Z_ijh_Xkjeh ceZ[b+ P[ X[b_[l[ Yeij*[ [Yj_l[ _dl[ijc[dji Wh[ [ii[dj_Wb je Xki_d[ii ]hemj WdZ
fhe _jWX_b_jo8 em[l[h) i_]d_ _YWdj _dl[ijc[dji Wh[ ikX [Yj je jof_YWb h_iai WdZ kdY[hjW_dj_[i _d [h[dj _d Z[l[bef_d] W d[mXki_d[ii eh [nfWdZ_d] Wd [n_ij_d] Xki_d[ii+ M [ W_bkh[ e Wdo i_]d_ _YWdj _dl[ijc[dj je fhel_Z[ [nf[Yj[Z h[jkhdi ehfhe _jWX_b_jo YekbZ Wl[ W cWj[h_Wb WZl[hi[ [ [Yj ed ekh _dWdY_Wb h[ikbji WdZ Z_l[hj cWdW][c[dj Wjj[dj_ed hec ceh[fhe _jWXb[ Xki_d[ii ef[hWj_edi+
E ARE SUBJECT TO RIS S RELATED TO OUR /;1 ACTIVITIES AND DISCLOSURES AND OUR REPUTATION AND BRAND COULD BE HARMED IF
WE FAIL TO MEET OUR PUBLIC SUSTAINABILIT TARGETS AND GOALS
Bd /-/-) m[ X[]Wd cWa_d] ekh YWhXed eejfh_dj YWbYkbWj_edi WlW_bWXb[ eh ekh fheZkYji+ Bd /-/.) m[ WddekdY[Z W_] bo WcX_j_eki ikijW_dWX_b_jo ijhWj[]o _d i[hl_Y[ e ekh W_c je [bf je h[l[hi[ Yb_cWj[ Y Wd][ j hek] X[jj[h Xki_d[ii+ Hkh
ikijW_dWX_b_jo ijhWj[]o Wi j h[[ ijhWj[]_Y fh_eh_j_[i7 %.& K[][d[hWj_l[ :]h_Ykbjkh[) %/& K[d[mWXb[ FWj[h_Wbi) WdZ %0&K[ifedi_Xb[ d[h]o+ M [i[ fh_eh_j_[i Wh[ kdZ[hf_dd[Z Xo .- jWh][ji) m _Y m[ _dj[dZ je WY _[l[ Xo j [ [dZ e /-/2) eh j [/-/2 MWh][ji+ Bd WZZ_j_ed) m[ Wl[ WddekdY[Z W ]eWb je h[ZkY[ ekh f[h*kd_j YWhXed [c_ii_edi je b[ii j Wd . a] e YWhXed
Z_en_Z[ [gk_lWb[dj [c_ii_edi Xo /-0-) eh j [ /-0- @eWb+ P[ Wh[ Wb_]d_d] ekh L@ Z_iYbeikh[i m_j j [ LkijW_dWX_b_jo:YYekdj_d] LjWdZWhZi ;eWhZ WdZ MWia ehY[ ed b_cWj[*K[bWj[Z _dWdY_Wb _iYbeikh[ hWc[mehai) WdZ m[ Wdj_Y_fWj[
Yedj_dk_d] je cWa[ L@ Z_iYbeikh[i+P _b[ ekh ikijW_dWX_b_jo ijhWj[]o WdZ fhWYj_Y[i WdZ j [ b[l[b e jhWdifWh[dYo m_j m _Y m[ Wh[ WffheWY _d] j [c Wh[
ekdZWj_edWb je ekh Xki_d[ii) j [o [nfei[ ki je i[l[hWb h_iai) _dYbkZ_d]7
j Wj m[ cWo W_b eh X[ kdWXb[ je kbbo WY _[l[ ed[ eh ceh[ e j [ /-/2 MWh][ji eh j [ /-0- @eWb Zk[ je W hWd][ eWYjehi m_j _d eh X[oedZ ekh Yedjheb %_dYbkZ_d] W W_bkh[ eh ]el[hdc[dji WdZ ej [h j _hZ fWhj_[i je cWa[ j [_dl[ijc[dji j Wj Wh[ h[gk_h[Z je cWa[ _d hWijhkYjkh[ _cfhel[c[dji) ikY Wi ]h[Wj[h WlW_bWX_b_jo e Yb[Wd[h [d[h]o]h_Zi&) eh j Wj m[ cWo WZ kij eh ceZ_ o ekh ijWj[Z ]eWbi _d b_] j e d[m _d ehcWj_ed) WZ kij[Z fhe [Yj_edi) eh W
Y Wd][ _d Xki_d[ii ijhWj[]o) Wdo e m _Y YekbZ d[]Wj_l[bo _cfWYj ekh XhWdZ) h[fkjWj_ed) WdZ Xki_d[ii8j Wj WY _[l_d] j [ /-/2 MWh][ji WdZ,eh /-0- @eWb cWo h[gk_h[ ki je [nf[dZ i_]d_ _YWdj h[iekhY[i) m _Y YekbZ
Z_l[hj j [ Wjj[dj_ed e ekh i[d_eh cWdW][c[dj WdZ a[o f[hiedd[b) Z[bWo j [ j_c[ Xo m _Y m[ YWd WY _[l[fhe _jWX_b_jo) Whc ki Yecf[j_j_l[bo) eh ej [hm_i[ b_c_j ekh WX_b_jo je cWa[ _dl[ijc[dji _d ekh ]hemj 8
j Wj ekh Z_iYbeikh[i h[bWj[Z je L@ cWo h[ikbj _d [_] j[d[Z iYhkj_do hec ijWa[ ebZ[hi eh ej [h j _hZ fWhj_[i eekh L@ f[h ehcWdY[) WYj_l_j_[i) WdZ Z[Y_i_edi8
j Wj W W_bkh[ je eh f[hY[fj_ed e W W_bkh[ je Z_iYbei[ c[jh_Yi WdZ i[j ]eWbi j Wj Wh[ h_]eheki [dek] eh _d Wd
WYY[fjWXb[ ehcWj) W W_bkh[ je Wffhefh_Wj[bo cWdW][ i[b[Yj_ed e ]eWbi) W W_bkh[ je eh f[hY[fj_ed e W W_bkh[ jecWa[ Wffhefh_Wj[ Z_iYbeikh[i) ijWa[ ebZ[h f[hY[fj_ed e W W_bkh[ je fh_eh_j_p[ j [ yYehh[Yjz L@ ]eWbi) eh Wd
kd WlehWXb[ L@*h[bWj[Z hWj_d] Xo W j _hZ fWhjo YekbZ d[]Wj_l[bo _cfWYj ekh XhWdZ) h[fkjWj_ed) WdZ Xki_d[ii8j Wj Y[hjW_d c[jh_Yi m[ kj_b_p[ h[Y[_l[ b_c_j[Z eh de WiikhWdY[ hec WdZ,eh l[h_ _YWj_ed Xo j _hZ fWhj_[i) cWo_dlebl[ W b[ii h_]eheki h[l_[m fheY[ii j Wd WiikhWdY[ iek] j _d Yedd[Yj_ed m_j ceh[ jhWZ_j_edWb WkZ_ji) ikY W
h[l_[m fheY[ii cWo dej _Z[dj_ o [hhehi WdZ cWo dej fhej[Yj ki hec fej[dj_Wb b_WX_b_jo kdZ[h j [ i[Ykh_j_[i bWmi)
WdZ) _ m[ m[h[ je i[[a ceh[ [nj[di_l[ WiikhWdY[ eh Wjj[ijWj_ed m_j h[if[Yj je ikY L@ c[jh_Yi) m[ cWo X[
kdWXb[ je eXjW_d ikY WiikhWdY[ eh Wjj[ijWj_ed eh cWo WY[ _dYh[Wi[Z Yeiji h[bWj[Z je eXjW_d_d] WdZ,eh cW_djW_d_d]
ikY WiikhWdY[ eh Wjj[ijWj_ed8
j Wj j [ j _hZ*fWhjo ZWjW ki[Z _d ekh YWhXed eejfh_dj YWbYkbWj_edi Wh[ Z[j[hc_d[Z je X[ mhed] eh X[Yec[kdWlW_bWXb[ je ki eh m Wj[l[h h[Wied) m _Y mekbZ h[gk_h[ ki je _dZ W d[m iekhY[ e gkWb_jo j _hZ*fWhjo ZWjW eh
Z[l[bef ekh emd) [_j [h e m _Y YekbZ h[gk_h[ i_]d_ _YWdj h[iekhY[i) W j[cfehWho ikif[di_ed e i Wh_d] W YWhXed
eejfh_dj eh [WY fheZkYj) eh Wd WZ kijc[dj je YWhXed eejfh_dj dkcX[hi X[YWki[ e lWh_Wj_edi _d j [ kdZ[hbo_d]/1

ZWjW) WdZ _ ekh ijWa[ ebZ[hi h[WYj kd WlehWXbo je Wdo ikY i_jkWj_ed eh m[ W_b je WZ[gkWj[bo cWdW][ WdojhWdi_j_ed) _j YekbZ d[]Wj_l[bo _cfWYj ekh XhWdZ) h[fkjWj_ed) WdZ Xki_d[ii8j Wj j [ L@ eh ikijW_dWX_b_jo ijWdZWhZi) dehci) eh c[jh_Yi) m _Y Wh[ YedijWdjbo [lebl_d]) Y Wd][ _d W cWdd[h j Wj
_cfWYji ki d[]Wj_l[bo eh h[gk_h[i ki je Y Wd][ j [ Yedj[dj eh cWdd[h e ekh Z_iYbeikh[i) WdZ ekh ijWa[ ebZ[hi eh
j _hZ fWhj_[i l_[m ikY Y Wd][%i& d[]Wj_l[bo) m[ Wh[ kdWXb[ je WZ[gkWj[bo [nfbW_d ikY Y Wd][i) eh m[ Wh[ h[gk_h[Zje [nf[dZ i_]d_ _YWdj h[iekhY[i je kfZWj[ ekh Z_iYbeikh[i) Wdo e m _Y YekbZ d[]Wj_l[bo _cfWYj ekh XhWdZ)
h[fkjWj_ed) WdZ Xki_d[ii8j Wj ekh XhWdZ h[fkjWj_ed) WdZ Xki_d[ii) YekbZ X[ d[]Wj_l[bo _cfWYj[Z _ m[ Wh[ f[hY[_l[Z) Wbb[][Z eh ekdZ je X[ _dl_ebWj_ed e ) eh ded*Yecfb_Wdj m_j ) d[mbo WZefj[Z eh YedijWdjbo [lebl_d] L@* WdZ ikijW_dWX_b_jo*h[bWj[Z bWmi
WdZ Z_iYbeikh[ h[gk_h[c[dji j Wj Wh[ Wffb_YWXb[ je ki8 WdZ
j Wj ekh XhWdZ) h[fkjWj_ed) WdZ Xki_d[ii YekbZ X[ d[]Wj_l[bo _cfWYj[Z _ Wdo e ekh Z_iYbeikh[i) _dYbkZ_d] ekh
YWhXed eejfh_dj dkcX[hi) h[fehj_d] je j _hZ*fWhjo L@ ijWdZWhZi) eh h[fehj_d] W]W_dij ekh /-/2 MWh][ji) /-0@eWb) eh ej [h ]eWbi) Wh[ _dWYYkhWj[) f[hY[_l[Z je X[ _dWYYkhWj[) eh Wbb[][Z je X[ _dWYYkhWj[+
E ARE SUBJECT TO RIS S RELATED TO OUR COMMITMENT TO CERTAIN /;1 CRITERIA WHICH WE CALL THE ;USTAINABILIT
AND BJECTIVES 0RAMEWOR OR THE ;0RAMEWOR

RINCIPLES

M [ LIH hWc[meha) m _Y Yedi_iji e L@ Yh_j[h_W j Wj m[ Wl[ iWj_i _[Z eh j Wj m[ _dj[dZ je iWj_i o) mWi eh_]_dWbbo
Z[iYh_X[Z ceh[ kbbo _d j [ i[Yj_ed j_jb[Z yM [ LkijW_dWX_b_jo Ih_dY_fb[i WdZ HX [Yj_l[i hWc[mehaz _d ekh _dWb fheif[Yjki_b[Z m_j j [ Led Gel[cX[h 1) /-/. fkhikWdj je Kkb[ 1/1%X&%1&+ M _i _i W d[m WdZ kdj[ij[Z hWc[meha) m _Y mWi dej
Z[l[bef[Z ieb[bo Xo Z_i_dj[h[ij[Z j _hZ fWhj_[i Xkj mWi Z[l[bef[Z m_j _dfkj hec :bbX_hZi WdZ ej [h fWhjd[hi+ M [h[ _i de
XWi_i eh _dl[ijehi je) eh jhWYa h[YehZ Xo m _Y _dl[ijehi YWd) Wii[ii j [ _cfWYj e j [ LIH hWc[meha ed ekh ef[hWj_edi)_dWdY_Wb YedZ_j_ed) WdZ j [ cWha[j fh_Y[ e ekh bWii : Yecced ijeYa+ Hkh WZ [h[dY[ je j [ LIH hWc[meha cWo h[ikbj_d WZZ_j_edWb Yeiji je ki _d ef[hWj_d] ekh Xki_d[ii) _dYbkZ_d]) eh [nWcfb[) Yeiji e j [ j _hZ*fWhjo L@ Wii[iic[dj) Yeiji
h[bWj[Z je c[[j_d] j [ YWhXed [c_ii_edi h[ZkYj_ed jWh][j) [jY+ P[ cWo dej c[[j Wbb e j [ LIH hWc[meha %eh Wdo fWhj
j [h[e & _d j [ kjkh[+ P[ cWo Wbie Y Wd][ j [ h[gk[dYo WdZ cWdd[h e h[fehj_d] ekh fhe]h[ii W]W_dij j [ LIH
hWc[meha+ khj [h) Wdo eh Wbb [b[c[dji e j [ LIH hWc[meha cWo X[ Yedi_Z[h[Z _dik _Y_[dj WdZ,eh kdiWj_i WYjeho WdZ,
eh j [ Yh[Z_X_b_jo e j [ LIH hWc[meha cWo X[ Z_ih[]WhZ[Z [dj_h[bo+ ;[YWki[ m[ Yecc_jj[Z fkXb_Ybo je j [ LIH
hWc[meha) _ m[ W_b je cWa[ c[Wd_d] kb fhe]h[ii ed L@ fhWYj_Y[i WdZ cWjj[hi eh je Yedj_dk[ je h[fehj jhWdifWh[djboWYheii L@ fhWYj_Y[i WdZ cWjj[hi h[bWj_d] je j [ LIH hWc[meha) ekh h[fkjWj_ed YekbZ X[ Whc[Z+ P[ YekbZ Wbie ZWcW][
ekh h[fkjWj_ed WdZ j [ lWbk[ e ekh XhWdZ _ m[ W_b je WYj h[ifedi_Xbo _d j [ Wh[Wi _d m _Y m[ h[fehj eh W_b je Z[cedijhWj[
j Wj ekh Yecc_jc[dj je L@ fh_dY_fb[i [d WdY[i ekh el[hWbb _dWdY_Wb f[h ehcWdY[+ :do Whc je ekh h[fkjWj_ed h[ikbj_d]
hec ekh W_bkh[ eh f[hY[_l[Z W_bkh[ je c[[j j [ LIH hWc[meha YekbZ Wbie _cfWYj [cfbeo[[ [d]W][c[dj WdZ h[j[dj_ed)
j [ m_bb_d]d[ii e ekh ikffb_[h eh cWdk WYjkh[hi je Ze Xki_d[ii m_j ki) eh _dl[ijehi m_bb_d]d[ii je fkhY Wi[ eh ebZ i Wh[ie ekh Yecced ijeYa) Wdo e m _Y YekbZ Wl[ W cWj[h_Wb WdZ WZl[hi[ [ [Yj ed ekh Xki_d[ii) h[ikbji e ef[hWj_edi) WdZ_dWdY_Wb YedZ_j_ed+
UR FUTURE SUCCESS IS SUBSTANTIALL DEPENDENT ON HIGHL S ILLED PERSONNEL AND IF WE ARE UNABLE TO ATTRACT AND RETAIN
TALENT WE MA NOT BE ABLE TO GROW EFFECTIVEL
Hkh ]hemj WdZ kjkh[ ikYY[ii bWh][bo Z[f[dZi ed j [ Yedj_dk[Z i[hl_Y[i e ekh i[d_eh cWdW][c[dj WdZ a[o[cfbeo[[i+ Hkh [n[Ykj_l[ cWdW][c[dj j[Wc WdZ a[o [cfbeo[[i Wh[ [cfbeo[Z ed Wd Wj*m_bb XWi_i) m _Y c[Wdi j Wj j [ocWo h[i_]d eh YekbZ X[ j[hc_dWj[Z eh Wdo h[Wied Wj Wdo j_c[+ P[ Ykhh[djbo Ze dej Wl[ ya[o f[hiedz _dikhWdY[ ed Wdo eekh [cfbeo[[i+ M [ beii e a[o f[hiedd[b) _dYbkZ_d] c[cX[hi e cWdW][c[dj) ikffbo Y W_d) _ddelWj_ed WdZ ikijW_dWX_b_jo)
fheZkYj Z[l[befc[dj) cWha[j_d]) WdZ iWb[i f[hiedd[b) YekbZ Z_ihkfj ekh ef[hWj_edi WdZ i[h_ekibo Whc ekh Xki_d[ii+Me ikYY[ii kbbo ]hem WdZ ef[hWj[ ekh Xki_d[ii WdZ [n[Ykj[ ekh ijhWj[]_Y fbWdi) m[ ckij WjjhWYj WdZ h[jW_d _] bo
gkWb_ _[Z f[hiedd[b+ ecf[j_j_ed eh [n[Ykj_l[i WdZ _] bo ia_bb[Z f[hiedd[b _i e j[d _dj[di[) [if[Y_Wbbo _d Gehj [hdWb_ ehd_W) m [h[ ekh [WZgkWhj[hi _i beYWj[Z+ :i m[ X[Yec[ W ceh[ cWjkh[ YecfWdo) m[ cWo _dZ ekh h[Yhk_j_d] [ ehji
ceh[ Y Wbb[d]_d]+ FWdo e j [ YecfWd_[i m_j m _Y m[ Yecf[j[ eh [nf[h_[dY[Z f[hiedd[b Wl[ ]h[Wj[h h[iekhY[i j Wd
m[ Wl[) WdZ iec[ e j [i[ YecfWd_[i cWo e [h ceh[ WjjhWYj_l[ Yecf[diWj_ed fWYaW][i+ M [ _dY[dj_l[i je WjjhWYj) h[jW_d)
WdZ cej_lWj[ [cfbeo[[i fhel_Z[Z Xo ekh [gk_jo WmWhZi %[if[Y_Wbbo _d b_] j e j [ h[bWj_l[bo bem jhWZ_d] fh_Y[ e ekh bWii
: Yecced ijeYa _d h[Y[dj gkWhj[hi& eh Xo kjkh[ WhhWd][c[dji) ikY Wi j hek] YWi Xedki[i) cWo dej X[ Wi [ [Yj_l[ Wiekh fWij _dY[dj_l[i eh Wi j [ Ykhh[dj _dY[dj_l[i e [h[Z Xo ekh Yecf[j_jehi+ B j [ f[hY[_l[Z lWbk[ e ekh [gk_jo WmWhZi
Z[Yb_d[i khj [h) eh _ j [ c_n e [gk_jo WdZ YWi Yecf[diWj_ed j Wj m[ e [h _i kdWjjhWYj_l[) _j cWo WZl[hi[bo W [Yj ekh
WX_b_jo je h[Yhk_j WdZ h[jW_d [cfbeo[[i+ P[ cWo dej X[ ikYY[ii kb _d WjjhWYj_d]) _dj[]hWj_d]) eh h[jW_d_d] gkWb_ _[Z f[hiedd[b/2

je kb _bb ekh Ykhh[dj eh kjkh[ d[[Zi+ P[ cWo [nf[h_[dY[ Z_ _Ykbjo _d _h_d] WdZ h[jW_d_d] _] bo ia_bb[Z [cfbeo[[i m_j
Wffhefh_Wj[ gkWb_ _YWj_edi+ Hkh h[Yhk_j_d] [ ehji cWo Wbie X[ b_c_j[Z eh Z[bWo[Z Xo bWmi WdZ h[]kbWj_edi) ikY Wi h[ijh_Yj_l[_cc_]hWj_ed bWmi) WdZ h[ijh_Yj_edi ed jhWl[b eh WlW_bWX_b_jo e l_iWi+ eh [nWcfb[) Wi m[ [nfWdZ _dje d[m ][e]hWf _[i)_dYbkZ_d] _h_d] e h[cej[ [cfbeo[[i) m[ ckij dWl_]Wj[ j [ h[Yhk_j_d] WdZ [cfbeoc[dj*h[bWj[Z Wif[Yji e beYWb hkb[i WdZ
h[gk_h[c[dji _d [WY ikY kh_iZ_Yj_ed Wi fWhj e ekh _h_d] fbWdi+ L_c_bWhbo) ekh hWj[ e [cfbeo[[ Wjjh_j_ed YekbZ X[_cfWYj[Z Xo j [ fWY[ WdZ h[Yel[ho e Xki_d[ii[i WdZ j [ eX cWha[j ebbem_d] j [ HOB *.6 fWdZ[c_Y) j [ ][d[hWb [Wbje j [ [Yedeco) j [ hWj[ e kd[cfbeoc[dj) j [ f[hY[_l[Z eh WYjkWb ceX_b_jo e ekh _] bo ia_bb[Z [cfbeo[[i m e cWo X[
h[Yhk_j[Z WmWo Xo ekh Yecf[j_jehi) eh ekh [n_ij_d] [cfbeo[[i fh[ [h[dY[i m_j h[if[Yj je h[cej[ eh y oXh_Zz meha_d]
WhhWd][c[dji) m _Y fh[ [h[dY[i cWo Z_l[h][ hec j [ dWjkh[ WdZ YedZ_j_edi e j [ heb[i m[ X[b_[l[ Wh[ ceij Wffhefh_Wj[
eh ekh Xki_d[ii+ B ekh [cfbeo[[ Wjjh_j_ed _i _] [h j Wd [nf[Yj[Z) m[ cWo _dZ _j Z_ _Ykbj je _bb ekh _h_d] d[[Zi m_j ekj
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ijhkYjkh[) YWf_jWb [nf[dZ_jkh[i) WZZ_j_edWb WZc_d_ijhWj_ed) WdZ ef[hWj_d] [nf[di[i) WYgk_i_j_ed) WdZ h[j[dj_ed e ik _Y_[djboia_bb[Z f[hiedd[b je _cfb[c[dj WdZ ef[hWj[ j [ d[m ioij[ci) Z[cWdZi ed cWdW][c[dj j_c[) j [ _djheZkYj_ed e [hhehi eh
lkbd[hWX_b_j_[i) WdZ ej [h h_iai WdZ Yeiji e Z[bWoi eh Z_ _Ykbj_[i _d jhWdi_j_ed_d] je eh _dj[]hWj_d] d[m ioij[ci _dje ekh
Ykhh[dj ioij[ci+ Hkh eh ekh j _hZ*fWhjo l[dZehi _dWX_b_jo je Yedj_dk[ je kfZWj[) _cfhel[) WdZ iYWb[ ekh m[Xi_j[ eh ceX_b[
Wff WdZ j [ kdZ[hbo_d] j[Y debe]o _d hWijhkYjkh[ %_dYbkZ_d] kf]hWZ[i je eh h[fbWY[c[dj e b[]WYo ioij[ci m_j ikYY[iiehioij[ci eh Xk_bZ_d] d[m feb_Y_[i) fheY[Zkh[i) jhW_d_d] fhe]hWci) WdZ ced_jeh_d] jeebi& YekbZ Whc ekh h[fkjWj_ed WdZ ekh
WX_b_jo je WYgk_h[) h[jW_d) WdZ i[hl[ ekh Ykijec[hi) m _Y YekbZ WZl[hi[bo W [Yj ekh Xki_d[ii) _dWdY_Wb YedZ_j_ed) WdZ
h[ikbji e ef[hWj_edi+
khj [h) m[ [dZ[Wleh je Yedj_dkWbbo kf]hWZ[ [n_ij_d] j[Y debe]_[i WdZ Xki_d[ii Wffb_YWj_edi) WdZ m[ cWo X[ h[gk_h[Zje _cfb[c[dj d[m j[Y debe]_[i eh Xki_d[ii Wffb_YWj_edi _d j [ kjkh[+ M [ _cfb[c[djWj_ed e kf]hWZ[i WdZ Y Wd][ih[gk_h[i i_]d_ _YWdj _dl[ijc[dji+ Hkh h[ikbji e ef[hWj_edi cWo X[ W [Yj[Z Xo j [ j_c_d]) [ [Yj_l[d[ii) WdZ Yeiji
WiieY_Wj[Z m_j j [ ikYY[ii kb _cfb[c[djWj_ed e Wdo kf]hWZ[i eh Y Wd][i je ekh ioij[ci WdZ _d hWijhkYjkh[+
3F THE TECHNOLOG BASED S STEMS THAT GIVE OUR CUSTOMERS THE ABILIT TO SHOP WITH US ONLINE DO NOT FUNCTION EFFECTIVEL OUR
RESULTS OF OPERATIONS AS WELL AS OUR ABILIT TO GROW OUR DIGITAL BUSINESS GLOBALL COULD BE MATERIALL ADVERSEL AFFECTED:do W_bkh[ ed ekh fWhj je fhel_Z[ WjjhWYj_l[) [ [Yj_l[) h[b_WXb[) ki[h* h_[dZbo Z_]_jWb fbWj ehci j Wj e [h W m_Z[
Wiiehjc[dj e c[hY WdZ_i[ m_j hWf_Z Z[b_l[ho efj_edi WdZ j Wj Yedj_dkWbbo c[[j j [ Y Wd]_d] [nf[YjWj_edi e edb_d[
i eff[hi YekbZ fbWY[ ki Wj W Yecf[j_j_l[ Z_iWZlWdjW][) h[ikbj _d j [ beii e Z_]_jWb WdZ ej [h iWb[i) Whc ekh h[fkjWj_ed m_j
Ykijec[hi) Wl[ W cWj[h_Wb WZl[hi[ _cfWYj ed j [ ]hemj e ekh Z_]_jWb Xki_d[ii ]beXWbbo) WdZ YekbZ Wl[ W cWj[h_Wb WZl[hi[_cfWYj ed ekh Xki_d[ii WdZ h[ikbji e ef[hWj_edi+
K_iai if[Y_ _Y je ekh Z_]_jWb Xki_d[ii Wbie _dYbkZ[ Z_l[hi_ed e iWb[i hec ekh YecfWdo*ef[hWj[Z ijeh[i) Z_ _Ykbjo _dh[Yh[Wj_d] j [ _d*ijeh[ [nf[h_[dY[ j hek] Z_h[Yj Y Wdd[bi WdZ b_WX_b_jo eh edb_d[ Yedj[dj+ Hkh W_bkh[ je ikYY[ii kbbo
h[ifedZ je j [i[ h_iai c_] j WZl[hi[bo W [Yj iWb[i _d ekh Z_]_jWb Xki_d[ii) Wi m[bb Wi ZWcW][ ekh h[fkjWj_ed WdZ XhWdZ+
Bd j [ [l[dj j Wj _j _i ceh[ Z_ _Ykbj eh ekh Ykijec[hi je Xko fheZkYji hec ki ed j [_h ceX_b[ Z[l_Y[i) eh _ ekh
Ykijec[hi Y eei[ dej je Xko fheZkYji hec ki ed j [_h ceX_b[ Z[l_Y[i eh je ki[ ceX_b[ fheZkYji j Wj Ze dej e [h WYY[ii je
ekh m[Xi_j[i) ekh Ykijec[h ]hemj YekbZ X[ Whc[Z WdZ ekh Xki_d[ii) _dWdY_Wb YedZ_j_ed) WdZ h[ikbji e ef[hWj_edi cWo X[
WZl[hi[bo W [Yj[Z+E ARE SUBJECT TO RIS S RELATED TO ONLINE PA MENT METHODSP[ Ykhh[djbo WYY[fj fWoc[dji ki_d] W lWh_[jo e c[j eZi) _dYbkZ_d] Yh[Z_j YWhZi WdZ Z[X_j YWhZi+ :i m[ e [h d[mfWoc[dj efj_edi je Yedikc[hi) m[ cWo X[ ikX [Yj je WZZ_j_edWb h[]kbWj_edi) Yecfb_WdY[ h[gk_h[c[dji) hWkZ WdZ ej [hh_iai+ eh Y[hjW_d fWoc[dj c[j eZi) m[ fWo _dj[hY Wd][ WdZ ej [h [[i) m _Y cWo _dYh[Wi[ el[h j_c[ WdZ hW_i[ ekhef[hWj_d] Yeiji WdZ bem[h fhe _jWX_b_jo+ P[ Wh[ Wbie ikX [Yj je fWoc[dj YWhZ WiieY_Wj_ed ef[hWj_d] hkb[i WdZ Y[hj_ _YWj_ed
h[gk_h[c[dji) _dYbkZ_d] j [ IWoc[dj WhZ BdZkijho WjW L[Ykh_jo LjWdZWhZ) eh I B LL) WdZ hkb[i ]el[hd_d] [b[Yjhed_Y
kdZi jhWdi [hi) m _Y YekbZ Y Wd][ eh X[ h[_dj[hfh[j[Z je cWa[ _j Z_ _Ykbj eh _cfeii_Xb[ eh ki je Yecfbo+ W_bkh[ jeYecfbo m_j I B LL eh je c[[j ej [h fWoc[dj YWhZ eh ej [h _dZkijho ijWdZWhZi cWo h[ikbj _d j [ _cfei_j_ed e _dWdY_Wb
f[dWbj_[i eh j [ WbbeYWj_ed Xo j [ YWhZ XhWdZi e j [ Yeiji e hWkZkb[dj Y Wh][i je ki+
3F SENSITIVE INFORMATION ABOUT OUR CUSTOMERS IS ACTUALL OR ALLEGED TO HAVE BEEN DISCLOSED OR IF WE OR OUR THIRD PARTPROVIDERS ARE SUBJECT TO REAL OR PERCEIVED C BERATTAC S OR MISUSE OUR CUSTOMERS MA CURTAIL USE OF OUR WEBSITE OR MOBILE
APP WE MA BE E POSED TO LIABILIT AND OUR REPUTATION COULD SUFFER
Hf[hWj_d] ekh Xki_d[ii WdZ fbWj ehc _dlebl[i j [ Yebb[Yj_ed) ijehW][) WdZ jhWdic_ii_ed e W lWh_[jo e i[di_j_l[_d ehcWj_ed) ikY Wi dWc[i) f ed[ dkcX[hi) cW_b_d] WdZ X_bb_d] WZZh[ii[i WdZ [cW_b WZZh[ii[i) WdZ ej [h i_c_bWh f[hiedWb_d ehcWj_ed) m _Y m[ cWo i Wh[ m_j ekh j _hZ*fWhjo i[hl_Y[ fhel_Z[hi+ Bd Wd [ ehj je fhej[Yj i[di_j_l[ _d ehcWj_ed) m[h[bo ed W lWh_[jo e i[Ykh_jo c[Wikh[i) Xkj WZlWdY[i _d Yecfkj[h YWfWX_b_j_[i) _dYh[Wi_d]bo ief _ij_YWj[Z jeebi WdZ c[j eZi
ki[Z Xo WYa[hi WdZ YoX[h j[hheh_iji) d[m Z_iYel[h_[i _d j [ _[bZ e Yhofje]hWf o) eh ej [h Z[l[befc[dji cWo h[ikbj _d ekh
eh ekh j _hZ*fWhjo i[hl_Y[ fhel_Z[hi %W& W_bkh[ eh _dWX_b_jo je Z[j[Yj YoX[hWjjWYai) eh %X& W_bkh[ eh _dWX_b_jo je WZ[gkWj[bofhej[Yj i[di_j_l[ _d ehcWj_ed+
E_a[ ej [h [ ecc[hY[ YecfWd_[i) m[ Wh[ Wbie lkbd[hWXb[ je WYa_d]) cWbmWh[) ikffbo Y W_d WjjWYai) Yecfkj[hl_hki[i) kdWkj eh_p[Z WYY[ii) WdZ lWh_eki ej [h WjjWYai Xo Yecfkj[h WYa[hi %ikY Wi f _i _d] eh ieY_Wb [d]_d[[h_d] WjjWYai)

00

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kdYj_edWb Wh[Wi e ekh meha ehY[ ef[hWj[ _d W y oXh_Zz eh kbbo h[cej[ meha [dl_hedc[dj) m _Y Wi [_] j[d[Z j [ h_ia ej [i[ fej[dj_Wb lkbd[hWX_b_j_[i+ :do e j [i[ _iik[i YekbZ b[WZ je _dj[hhkfj_edi eh i kjZemdi e ekh fbWj ehc) beii eh
Yehhkfj_ed e ZWjW eh kdWkj eh_p[Z WYY[ii je) eh Z_iYbeikh[ e i[di_j_l[ _d ehcWj_ed+ oX[hWjjWYai YekbZ Wbie h[ikbj _d j [j [ j e ekh _dj[bb[YjkWb fhef[hjo eh i[di_j_l[ _d ehcWj_ed e ekh Xki_d[ii fWhjd[hi WdZ ikffb_[hi) ZWcW][ je ekh BM ioij[cieh Z_ihkfj_ed e ekh WX_b_jo je cWa[ _dWdY_Wb h[fehji) WdZ ej [h fkXb_Y Z_iYbeikh[i h[gk_h[Z e fkXb_Y YecfWd_[i+ P[ Wl[
X[[d ikX [Yj je Wjj[cfj[Z YoX[h) f _i _d]) eh ieY_Wb [d]_d[[h_d] WjjWYai _d j [ fWij WdZ cWo Yedj_dk[ je X[ ikX [Yj je ikY
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WYY[ii je ioij[ci Y Wd][ h[gk[djbo WdZ cWo dej X[ ademd kdj_b bWkdY [Z W]W_dij ki eh ekh j _hZ*fWhjo i[hl_Y[ fhel_Z[hi+L[Ykh_jo Xh[WY [i YWd Wbie eYYkh Wi W h[ikbj e ded*j[Y d_YWb _iik[i) _dYbkZ_d] _dj[dj_edWb eh _dWZl[hj[dj WYj_edi Xo ekh[cfbeo[[i) ekh j _hZ*fWhjo i[hl_Y[ fhel_Z[hi) eh j [_h f[hiedd[b+B m[) ekh Z_ijh_Xkjehi) eh ekh j _hZ*fWhjo i[hl_Y[ fhel_Z[hi [nf[h_[dY[) eh Wh[ X[b_[l[Z je Wl[ [nf[h_[dY[Z) i[Ykh_jo
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feb_Y_[i) dej_Y[i) bWmi) hkb[i) Yekhj ehZ[hi) WdZ h[]kbWj_edi WdZ YekbZ h[ikbj _d fheY[[Z_d]i eh WYj_edi W]W_dij ki _d j [ iWc[
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E ARE SUBJECT TO FEDERAL STATE OR FOREIGN LAWS AND REGULATIONS AS WELL AS OUR CONTRACTUAL OBLIGATIONS AND INDUSTRRE UIREMENTS RELATING TO PRIVAC DATA PROTECTION AND CUSTOMER PROTECTION THE E PANSION OF CURRENT OR THE ENACTMENT OF
NEW LAWS AND REGULATIONS RELATING TO PRIVAC DATA PROTECTION AND CUSTOMER PROTECTION OR FAILURE TO COMPL WITH THOSE
LAWS OR OBLIGATIONS WHETHER OR NOT INADVERTENT COULD MATERIALL ADVERSEL AFFECT OUR BUSINESS FINANCIAL CONDITION AND
RESULTS OF OPERATIONSP[ Yebb[Yj WdZ cW_djW_d i_]d_ _YWdj Wcekdji e ZWjW h[bWj_d] je ekh Ykijec[hi WdZ [cfbeo[[i) WdZ m[ WY[ h_iai_d [h[dj _d WdZb_d] bWh][ lebkc[i e ZWjW) jhWdi [hh_d] ikY ZWjW je j _hZ fWhj_[i) fheY[ii_d] ikY ZWjW eh jhWYa_d] WdZ
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WffheWY _d h[Y[dj ]k_ZWdY[) j _i YekbZ b[WZ je ikXijWdj_Wb Yeiji) h[gk_h[ i_]d_ _YWdj ioij[ci Y Wd][i) b_c_j j [ [ [Yj_l[d[iie ekh cWha[j_d] WYj_l_j_[i) Z_l[hj j [ Wjj[dj_ed e ekh j[Y debe]o f[hiedd[b) WZl[hi[bo W [Yj ekh cWh]_di) _dYh[Wi[ Yeiji)
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Wj ekh Z_h[Yj_ed je Yecfbo m_j Wffb_YWXb[ bWmi WdZ h[]kbWj_edi _d j [ ki[ e j [i[ Y Wdd[bi YekbZ WZl[hi[bo W [Yj ekh
h[fkjWj_ed eh ikX [Yj ki je _d[i eh ej [h f[dWbj_[i+ Bd WZZ_j_ed) ekh [cfbeo[[i eh j _hZ fWhj_[i WYj_d] Wj ekh Z_h[Yj_ed cWo
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cWo X[ feij[Z ed ieY_Wb c[Z_W fbWj ehci Wj Wdo j_c[ WdZ cWo Wl[ Wd WZl[hi[ _cfWYj ed ekh XhWdZ) h[fkjWj_ed) eh Xki_d[ii+M [ Whc cWo X[ _cc[Z_Wj[ m_j ekj W ehZ_d] ki Wd effehjkd_jo eh h[Zh[ii eh Yehh[Yj_ed WdZ YekbZ Wl[ W cWj[h_Wb
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1OVERNMENT REGULATION OF THE INTERNET AND E-OMMERCE IS EVOLVING AND UNFAVORABLE CHANGES OR FAILURE B US TO COMPLWITH THESE REGULATIONS WHETHER OR NOT INADVERTENT COULD SUBSTANTIALL HARM OUR BUSINESS FINANCIAL CONDITION AND
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P[ Wh[ ikX [Yj je ][d[hWb Xki_d[ii h[]kbWj_edi WdZ bWmi Wi m[bb Wi h[]kbWj_edi WdZ bWmi if[Y_ _YWbbo ]el[hd_d] j [_dj[hd[j WdZ [ ecc[hY[+ n_ij_d] WdZ kjkh[ h[]kbWj_edi WdZ bWmi YekbZ _cf[Z[ j [ ]hemj e j [ _dj[hd[j) [ ecc[hY[) eh
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fh_lWYo WdZ ZWjW i[Ykh_jo) Wdj_*ifWc) Yedj[dj fhej[Yj_ed) [b[Yjhed_Y YedjhWYji WdZ Yecckd_YWj_edi) Ykijec[h fhej[Yj_ed) WdZ_dj[hd[j d[kjhWb_jo+ Bj _i dej Yb[Wh em [n_ij_d] bWmi ]el[hd_d] _iik[i ikY Wi fhef[hjo emd[hi _f) iWb[i) WdZ ej [h jWn[i WdZ
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04

cWdd[h j Wj _i _dYedi_ij[dj hec ed[ kh_iZ_Yj_ed je Wdej [h WdZ cWo Yed b_Yj m_j ej [h hkb[i eh ekh fhWYj_Y[i+ P[ YWddej
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Yecfbo m_j Wdo e j [i[ bWmi eh h[]kbWj_edi YekbZ h[ikbj _d ZWcW][ je ekh h[fkjWj_ed) W beii _d Xki_d[ii) WdZ fheY[[Z_d]ieh WYj_edi W]W_dij ki Xo ]el[hdc[djWb [dj_j_[i) Ykijec[hi) ikffb_[hi) eh ej [hi+ :do ikY fheY[[Z_d] eh WYj_ed YekbZ khj
ekh h[fkjWj_ed) ehY[ ki je if[dZ i_]d_ _YWdj Wcekdji _d Z[ [di[ e j [i[ fheY[[Z_d]i) Z_ijhWYj ekh cWdW][c[dj) _dYh[Wi[ekh Yeiji e Ze_d] Xki_d[ii) Z[Yh[Wi[ j [ ki[ e ekh m[Xi_j[ WdZ ceX_b[ Wff Xo Ykijec[hi WdZ ikffb_[hi) WdZ cWo h[ikbj _d
j [ _cfei_j_ed e ced[jWho b_WX_b_j_[i+ P[ cWo Wbie X[ YedjhWYjkWbbo b_WXb[ je _dZ[cd_ o WdZ ebZ Whcb[ii j _hZ fWhj_[ihec j [ Yeiji eh Yedi[gk[dY[i e ekh emd ded*Yecfb_WdY[ m_j Wdo ikY bWmi eh h[]kbWj_edi+ :i W h[ikbj) WZl[hi[Z[l[befc[dji m_j h[if[Yj je j [i[ bWmi WdZ h[]kbWj_edi YekbZ ikXijWdj_Wbbo Whc ekh Xki_d[ii) _dWdY_Wb YedZ_j_ed) WdZ
h[ikbji e ef[hWj_edi+
E HAVE AND MA CONTINUE TO FACE E POSURE TO FOREIGN CURRENC E CHANGE RATE FLUCTUATIONS[hjW_d e ekh eh[_]d h[l[dk[ _i Z[dec_dWj[Z _d Ykhh[dY_[i e j [ Yekdjh_[i WdZ j[hh_jeh_[i m [h[ m[ i[bb ekh fheZkYji
ekji_Z[ e j [ Nd_j[Z LjWj[i+ L_c_bWhbo) Y[hjW_d e ekh eh[_]d ef[hWj_d] [nf[di[i Wh[ Z[dec_dWj[Z _d j [ Ykhh[dY_[i e j [Yekdjh_[i WdZ j[hh_jeh_[i _d m _Y ekh j _hZ*fWhjo l[dZehi Wh[ beYWj[Z+ eh [nWcfb[) je WYgk_h[ j [ ikffbo e hWm cWj[h_Wbi
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eh[_]d Ykhh[dYo [nY Wd][ hWj[ bkYjkWj_edi) _j Wi X[[d WdZ cWo Yedj_dk[ je X[ ceh[ Z_ _Ykbj je Z[j[Yj kdZ[hbo_d] jh[dZi _d
ekh Xki_d[ii WdZ h[ikbji e ef[hWj_edi+ Bd WZZ_j_ed) je j [ [nj[dj j Wj bkYjkWj_edi _d Ykhh[dYo [nY Wd][ hWj[i YWki[ ekhh[ikbji e ef[hWj_edi je Z_ [h hec ekh [nf[YjWj_edi eh j [ [nf[YjWj_edi e ekh _dl[ijehi) j [ jhWZ_d] fh_Y[ e ekh bWii :Yecced ijeYa YekbZ X[ bem[h[Z+ P[ Ze dej Ykhh[djbo cW_djW_d W fhe]hWc je [Z][ jhWdiWYj_edWb [nfeikh[i _d eh[_]dYkhh[dY_[i+ Aem[l[h) _d j [ kjkh[) m[ cWo ki[ Z[h_lWj_l[ _dijhkc[dji) ikY Wi eh[_]d Ykhh[dYo ehmWhZ WdZ efj_ed
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OPERATIONS NEW TRADE RESTRICTIONS COULD PREVENT US FROM IMPORTING OR SELLING OUR PRODUCTS PROFITABL
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WZZ_j_edWb gkejWi) Zkj_[i) jWh_ i) eh ej [h h[ijh_Yj_edi eh h[]kbWj_edi) eh cWo WZl[hi[bo WZ kij fh[lW_b_d] gkejW) Zkjo) eh jWh_b[l[bi+ M [ h[ikbji e Wdo WkZ_ji eh h[bWj[Z Z_ifkj[i h[]WhZ_d] j [i[ h[ijh_Yj_edi eh h[]kbWj_edi %_dYbkZ_d]) eh [nWcfb[)
h[]WhZ_d] j [ fhef[h _cfehj YbWii_ _YWj_ed YeZ[) eh AML YeZ[) eh W ]_l[d fheZkYj& YekbZ Wl[ Wd WZl[hi[ [ [Yj ed ekh_dWdY_Wb ijWj[c[dji eh j [ f[h_eZ eh f[h_eZi eh m _Y j [ Wffb_YWXb[ _dWb Z[j[hc_dWj_edi Wh[ cWZ[+ ekdjh_[i _cfei[)ceZ_ o) WdZ h[cel[ jWh_ i WdZ ej [h jhWZ[ h[ijh_Yj_edi _d h[ifedi[ je W Z_l[hi[ WhhWo e WYjehi) _dYbkZ_d] ]beXWb WdZ
dWj_edWb [Yedec_Y WdZ feb_j_YWb YedZ_j_edi) m _Y cWa[ _j _cfeii_Xb[ eh ki je fh[Z_Yj kjkh[ Z[l[befc[dji h[]WhZ_d] jWh_ i
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hec Y[hjW_d eh[_]d Yekdjh_[i) ikY Wi _dW) WdZ Wdo _cfei_j_ed e WZZ_j_edWb jWh_ i Xo j [ Nd_j[Z LjWj[i YekbZ h[ikbj _d
j [ WZefj_ed e jWh_ i Xo ej [h Yekdjh_[i) b[WZ_d] je W ]beXWb jhWZ[ mWh+ :do ikY kjkh[ jWh_ i Xo j [ Nd_j[Z LjWj[i eh ej [hYekdjh_[i YekbZ Wl[ W i_]d_ _YWdj _cfWYj ed ekh Xki_d[ii+ P _b[ m[ cWo Wjj[cfj je h[d[]ej_Wj[ fh_Y[i m_j ikffb_[hi eh
Z_l[hi_ o ekh ikffbo Y W_d _d h[ifedi[ je jWh_ i eh i _ j fheZkYj_ed X[jm[[d cWdk WYjkh[hi _d Z_ [h[dj Yekdjh_[i) ikY[ ehji cWo dej o_[bZ _cc[Z_Wj[ h[ikbji eh cWo X[ _d[ [Yj_l[ eh dej feii_Xb[ _d j [ d[Wh*j[hc+ eh [nWcfb[) m[ i _ j[ZfheZkYj_ed YWfWY_jo hec _dW je O_[jdWc) m _Y c[Wdi j Wj j [ N+L+ ]el[hdc[dj i jWh_ i ed Y[hjW_d _cfehji hec _dW
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YWfWY_jo XWYa je_dW %eh ej [h Yekdjh_[i eh m _Y j [ N+L+ ]el[hdc[dj Wi _cfei[Z _] [h jWh_ i& Zk[ je bWYa e
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Ykijec[h8 em[l[h) j _i YekbZ h[ZkY[ j [ Yecf[j_j_l[d[ii e ekh fheZkYji WdZ WZl[hi[bo W [Yj d[j h[l[dk[+
MhWZ[ h[ijh_Yj_edi) _dYbkZ_d] jWh_ i) gkejWi) [Yedec_Y iWdYj_edi) [cXWh]e[i) iW []kWhZi) WdZ Ykijeci h[ijh_Yj_edi)
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ceZ_ o ekh ikffbo Y W_d eh]Wd_pWj_ed eh ej [h Ykhh[dj Xki_d[ii fhWYj_Y[i) Wdo e m _Y YekbZ Whc ekh Xki_d[ii) _dWdY_Wb
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05

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06

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Yed b_Yj _d j [ F_ZZb[ Wij&) fWdZ[c_Yi %_dYbkZ_d] HOB *.6&) _dY_Z[dji e j[hheh_ic) eh h[ifedi[i je j [i[[l[dji8 WdZ
j [ ej [h WYjehi Z[iYh_X[Z _d j _i yIWhj BB) Bj[c .:+ K_ia WYjehiz WdZ _d j [ i[Yj_ed j_jb[Z yLf[Y_Wb Gej[
K[]WhZ_d] ehmWhZ*Eeea_d] LjWj[c[djiz _dYbkZ[Z [bi[m [h[ _d j _i :ddkWb K[fehj ed ehc .-*D+
M [ ijeYa cWha[j Wi h[Y[djbo [nf[h_[dY[Z [njh[c[ fh_Y[ WdZ lebkc[ bkYjkWj_edi+ M [ cWha[j fh_Y[i e i[Ykh_j_[i eYecfWd_[i Wl[ [nf[h_[dY[Z bkYjkWj_edi j Wj e j[d Wl[ X[[d kdh[bWj[Z eh Z_ifhefehj_edWj[ je j [_h h[ikbji e ef[hWj_edi+
FWha[j bkYjkWj_edi YekbZ h[ikbj _d [njh[c[ lebWj_b_jo _d j [ fh_Y[ e i Wh[i e ekh bWii : Yecced ijeYa+ Ih_Y[ lebWj_b_jo
cWo X[ ]h[Wj[h _ j [ fkXb_Y beWj WdZ jhWZ_d] lebkc[ e i Wh[i e ekh bWii : Yecced ijeYa _i bem+ khj [hceh[) _d j [fWij) ijeYa ebZ[hi Wl[ iec[j_c[i _dij_jkj[Z i[Ykh_j_[i YbWii WYj_ed b_j_]Wj_ed W]W_dij YecfWd_[i ebbem_d] f[h_eZi elebWj_b_jo _d j [ cWha[j fh_Y[ e j [_h i[Ykh_j_[i+ eh [nWcfb[) ed :fh_b .0) /-/0) WdZ ed FWo .3) /-/0) m[ WdZ Y[hjW_d e
ekh [n[Ykj_l[ e _Y[hi WdZ Z_h[Yjehi m[h[ dWc[Z Wi Z[ [dZWdji _d jme ikXijWdj_Wbbo i_c_bWh i[Ykh_j_[i YbWii WYj_ed bWmik_ji
Wbb[]_d] j Wj m[ l_ebWj[Z L[Yj_edi .-%X& WdZ /-%W& e j [ nY Wd][ :Yj WdZ L
Kkb[ .-X*2) .4 + +K+ s /1-+.-X*2)
fheckb]Wj[Z j [h[kdZ[h) WdZ L[Yj_edi .. WdZ .2 e j [ L[Ykh_j_[i :Yj e .600) eh j [ L[Ykh_j_[i :Yj) Xo cWa_d] cWj[h_Wbbo
Wbi[ WdZ,eh c_ib[WZ_d] ijWj[c[dji WXekj ekh Xki_d[ii) ef[hWj_edi WdZ fheif[Yji+ M [i[ jme YWi[i Wh[ YWfj_ed[Z L dWoZ[h l+:bbX_hZi) BdY+) [j Wb+) Wi[ Ge+ /0*Yl*-.5..*:FH %G+ + Wb+&8 [b]WZe l+ :bbX_hZi) BdY+) [j Wb+) Wi[ Ge+ /0*Yl*-/04/*:FH %G+ + Wb+&+ Hd Ckbo /2) /-/0) j [ Yekhj [dj[h[Z Wd ehZ[h Yedieb_ZWj_d] j [ jme YWi[i) Wffe_dj_d] b[WZ fbW_dj_ i) WdZ
Wffhel_d] b[WZ fbW_dj_ i i[b[Yj_ed e b[WZ Yekdi[b+ P[ _dj[dZ je l_]ehekibo Z[ [dZ W]W_dij j [i[ bWmik_ji+ M _i if[Y_ _Yb_j_]Wj_ed WdZ Wdo i_c_bWh ikY b_j_]Wj_ed W]W_dij ki YekbZ h[ikbj _d ikXijWdj_Wb Yeiji) Z_l[hj cWdW][c[dj i Wjj[dj_ed WdZ
h[iekhY[i) WdZ Whc ekh Xki_d[ii) _dWdY_Wb YedZ_j_ed) WdZ h[ikbji e ef[hWj_edi+

103F WE FAIL TO SATISF ALL APPLICABLE RE UIREMENTS OF ASDA AND IT DETERMINES TO DELIST OUR -LASS COMMON STOC THE
DELISTING COULD ADVERSEL AFFECT THE MAR ET LI UIDIT OF OUR -LASS COMMON STOC AND THE MAR ET PRICE OF OUR -LASSCOMMON STOC COULD DECREASE
Hkh bWii : Yecced ijeYa _i Ykhh[djbo b_ij[Z ed j [ GWiZWg @beXWb L[b[Yj FWha[j kdZ[h j [ iocXeb y;BK +z Me
cW_djW_d j [ b_ij_d] e ekh bWii : Yecced ijeYa ed j [ GWiZWg @beXWb L[b[Yj FWha[j) m[ Wh[ h[gk_h[Z je c[[j Y[hjW_d
b_ij_d] h[gk_h[c[dji) _dYbkZ_d]) W c_d_ckc Ybei_d] X_Z fh_Y[ e .+-- f[h i Wh[+ Hd HYjeX[h 6) /-/0) j [ Ybei_d] X_Z fh_Y[eh ekh bWii : Yecced ijeYa mWi X[bem .+-- eh j [ _hij j_c[+ B j [ Ybei_d] X_Z fh_Y[ eh ekh bWii : Yecced ijeYa _i
X[bem .+-- eh W f[h_eZ e 0- Yedi[Ykj_l[ Xki_d[ii ZWoi) j [d) _d WYYehZWdY[ m_j GWiZWg E_ij_d] Kkb[ 25.-%Y&%0&%:&) m[
m_bb Wl[ Wd _d_j_Wb f[h_eZ e .5- YWb[dZWh ZWoi je h[]W_d Yecfb_WdY[ m_j GWiZWg i X_Z fh_Y[ h[gk_h[c[dj+ B ) Wj Wdo j_c[
X[ eh[ j [ .5-*ZWo f[h_eZ [dZi) j [ X_Z fh_Y[ eh ekh bWii : Yecced ijeYa Ybei[i Wj .+-- eh ceh[ eh W c_d_ckc e .Yedi[Ykj_l[ Xki_d[ii ZWoi) j [d m[ m_bb h[]W_d Yecfb_WdY[ m_j j [ X_Z fh_Y[ h[gk_h[c[dj) kdb[ii GWiZWg ijW [n[hY_i[Z _ji
Z_iYh[j_ed je [nj[dZ j _i .-*ZWo f[h_eZ fkhikWdj je GWiZWg hkb[i+ P[ cWo X[ [b_]_Xb[ eh Wd WZZ_j_edWb .5-*ZWo f[h_eZ jeh[]W_d Yecfb_WdY[ _ m[ [b[Yj je jhWdi [h je j [ GWiZWg Wf_jWb FWha[j je jWa[ WZlWdjW][ e j [ WZZ_j_edWb Yecfb_WdY[
f[h_eZ ed j Wj cWha[j+ Me gkWb_ o) m[ mekbZ d[[Z je c[[j j [ Yedj_dk[Z b_ij_d] h[gk_h[c[dj eh cWha[j lWbk[ e fkXb_Ybo[bZ i Wh[i WdZ Wbb ej [h _d_j_Wb b_ij_d] ijWdZWhZi eh j [ GWiZWg Wf_jWb FWha[j) m_j j [ [nY[fj_ed e j [ X_Z fh_Y[h[gk_h[c[dj) WdZ fhel_Z[ mh_jj[d dej_Y[ je GWiZWg e ekh _dj[dj_ed je Ykh[ j [ Z[ _Y_[dYo Zkh_d] j [ i[YedZ Yecfb_WdY[
f[h_eZ Xo [ [Yj_d] W h[l[hi[ ijeYa ifb_j) _ d[Y[iiWho+
M [h[ YWd X[ de WiikhWdY[ j Wj m[ m_bb cW_djW_d Yecfb_WdY[ m_j j [ h[gk_h[c[dji eh b_ij_d] ekh bWii : Yecced
ijeYa ed GWiZWg+ B m[ Wh[ kdWXb[ je iWj_i o j [ GWiZWg Yh_j[h_W eh Yedj_dk[Z b_ij_d]) ekh bWii : Yecced ijeYa mekbZ X[
ikX [Yj je Z[b_ij_d]+ : Z[b_ij_d] e ekh bWii : Yecced ijeYa YekbZ d[]Wj_l[bo _cfWYj ki Xo) Wced] ej [h j _d]i) h[ZkY_d]
j [ b_gk_Z_jo WdZ cWha[j fh_Y[ e ekh bWii : Yecced ijeYa8 h[ZkY_d] j [ dkcX[h e _dl[ijehi m_bb_d] je ebZ eh WYgk_h[
ekh bWii : Yecced ijeYa) m _Y YekbZ d[]Wj_l[bo _cfWYj ekh WX_b_jo je hW_i[ [gk_jo _dWdY_d]8 Z[Yh[Wi_d] j [ Wcekdj ed[mi WdZ WdWboij Yel[hW][ e ki8 WdZ b_c_j_d] ekh WX_b_jo je _iik[ WZZ_j_edWb i[Ykh_j_[i eh eXjW_d WZZ_j_edWb _dWdY_d] _d j [kjkh[+ Bd WZZ_j_ed) Z[b_ij_d] hec GWiZWg cWo d[]Wj_l[bo _cfWYj ekh h[fkjWj_ed WdZ) Yedi[gk[djbo) ekh Xki_d[ii+HE DUAL CLASS STRUCTURE OF OUR COMMON STOC MA ADVERSEL AFFECT THE TRADING MAR ET FOR OUR -LASSCOMMON STOC

P[ YWddej fh[Z_Yj m [j [h ekh ZkWb YbWii ijhkYjkh[ m_bb h[ikbj _d W bem[h eh ceh[ lebWj_b[ cWha[j fh_Y[ e ekh bWii :Yecced ijeYa eh _d WZl[hi[ fkXb_Y_jo eh ej [h WZl[hi[ Yedi[gk[dY[i+ eh [nWcfb[) Y[hjW_d _dZ[n fhel_Z[hi Wl[ WddekdY[Zh[ijh_Yj_edi ed _dYbkZ_d] YecfWd_[i m_j ZkWb YbWii eh ckbj_*YbWii i Wh[ ijhkYjkh[i _d Y[hjW_d e j [_h _dZ[n[i+ Bd Ckbo /-.4)
L#I em Ced[i WddekdY[Z Y Wd][i je j [_h [b_]_X_b_jo Yh_j[h_W eh j [ _dYbki_ed e i Wh[i e fkXb_Y YecfWd_[i ed Y[hjW_d_dZ_Y[i) _dYbkZ_d] j [ L#I 2--) j [ L#I F_Z Wf 1--) WdZ j [ L#I LcWbb Wf 3--) je [nYbkZ[ YecfWd_[i m_j ckbj_fb[
YbWii[i e i Wh[i e Yecced ijeYa hec X[_d] WZZ[Z je j [i[ _dZ_Y[i8 em[l[h) _d :fh_b /-/0) L#I em Ced[i WddekdY[Z_ji Z[Y_i_ed j Wj YecfWd_[i m_j ckbj_fb[ i Wh[ YbWii ijhkYjkh[i m_bb X[ Yedi_Z[h[Z [b_]_Xb[ YWdZ_ZWj[i eh WZZ_j_ed je j [L#I ecfei_j[ .2-- WdZ _ji Yecfed[dj _dZ_Y[i fhel_Z[Z j [o c[[j Wbb ej [h [b_]_X_b_jo Yh_j[h_W+ ;[]_dd_d] _d /-.4) FL B)
W b[WZ_d] ijeYa _dZ[n fhel_Z[h) ef[d[Z fkXb_Y YedikbjWj_edi ed j [_h jh[Wjc[dj e de*lej[ WdZ ckbj_*YbWii ijhkYjkh[i WdZ
j[cfehWh_bo XWhh[Z d[m ckbj_*YbWii b_ij_d]i hec Y[hjW_d e _ji _dZ_Y[i8 em[l[h) _d HYjeX[h /-.5) FL B WddekdY[Z _ji
Z[Y_i_ed je _dYbkZ[ [gk_jo i[Ykh_j_[i ym_j kd[gkWb lej_d] ijhkYjkh[iz _d _ji _dZ_Y[i WdZ je bWkdY W d[m _dZ[n j Wj
if[Y_ _YWbbo _dYbkZ[i lej_d] h_] ji _d _ji [b_]_X_b_jo Yh_j[h_W+ M [i[ feb_Y_[i Wh[ ij_bb W_hbo d[m) WdZ _j h[cW_di kdYb[Wh m Wj
[ [Yj) _ Wdo) j [o m_bb Wl[ ed j [ lWbkWj_edi e fkXb_Ybo jhWZ[Z YecfWd_[i [nYbkZ[Z hec j [ _dZ_Y[i _d j [ bed][h j[hc)Xkj _j _i feii_Xb[ j Wj j [o cWo Z[fh[ii j [i[ lWbkWj_edi YecfWh[Z je j ei[ e ej [h i_c_bWh YecfWd_[i j Wj Wh[ _dYbkZ[Z+khj [hceh[) m[ YWddej Wiikh[ oek j Wj ej [h ijeYa _dZ_Y[i m_bb dej jWa[ W i_c_bWh WffheWY je L#I em Ced[i eh ML
Kkii[bb _d j [ kjkh[+ nYbki_ed hec _dZ_Y[i YekbZ cWa[ ekh bWii : Yecced ijeYa b[ii WjjhWYj_l[ je _dl[ijehi WdZ) Wi W
h[ikbj) j [ cWha[j fh_Y[ e ekh bWii : Yecced ijeYa YekbZ X[ WZl[hi[bo W [Yj[Z+;ALES DIRECTL OR INDIRECTL OF A SUBSTANTIAL AMOUNT OF OUR -LASS COMMON STOC IN THE PUBLIC MAR ETS B OUR E ISTINGSECURIT HOLDERS MA CAUSE THE PRICE OF OUR -LASS COMMON STOC TO DECLINE
LWb[i e W ikXijWdj_Wb dkcX[h e i Wh[i e ekh bWii : Yecced ijeYa %_dYbkZ_d] Wdo ikY i Wh[i _iik[Z kfed
Yedl[hi_ed e i Wh[i e ekh bWii ; Yecced ijeYa& _dje j [ fkXb_Y cWha[j) fWhj_YkbWhbo iWb[i Xo ekh Z_h[Yjehi) [n[Ykj_l[e _Y[hi) WdZ fh_dY_fWb ijeYa ebZ[hi) eh j [ f[hY[fj_ed j Wj j [i[ iWb[i c_] j eYYkh) YekbZ YWki[ j [ cWha[j fh_Y[ e ekh
bWii : Yecced ijeYa je Z[Yb_d[+ FWdo e ekh [n_ij_d] i[Ykh_jo ebZ[hi Wl[ ikXijWdj_Wb kdh[Ye]d_p[Z ]W_di ed j [ lWbk[
e j [ [gk_jo j [o ebZ WdZ cWo jWa[ ij[fi je i[bb j [_h i Wh[i eh ej [hm_i[ i[Ykh[ eh b_c_j j [_h h_ia [nfeikh[ je j [ lWbk[ ej [_h kdh[Ye]d_p[Z ]W_di ed j ei[ i Wh[i+ P[ Wh[ kdWXb[ je fh[Z_Yj j [ j_c_d] eh [ [Yj e ikY iWb[i ed j [ cWha[j fh_Y[ eekh bWii : Yecced ijeYa+

11

Bd WZZ_j_ed) Wi e [Y[cX[h 0.) /-/0) m[ WZ ijeYa efj_edi ekjijWdZ_d] j Wj) _ kbbo [n[hY_i[Z) mekbZ h[ikbj _d j [_iikWdY[ e 5)/-3)-6. i Wh[i e bWii ; Yecced ijeYa WdZ 2)-10)56/ i Wh[i e bWii : Yecced ijeYa+ :bb e j [ i Wh[i eYecced ijeYa _iikWXb[ kfed j [ [n[hY_i[ e ekjijWdZ_d] ijeYa efj_edi) j [ .-)/31)-6- i Wh[i e bWii : Yecced ijeYah[i[hl[Z WdZ WlW_bWXb[ eh kjkh[ _iikWdY[ kdZ[h ekh /-/. gk_jo BdY[dj_l[ IbWd) WdZ j [ 2)/03)62- i Wh[i e bWii :Yecced ijeYa h[i[hl[Z WdZ WlW_bWXb[ eh kjkh[ _iikWdY[ kdZ[h ekh /-/. cfbeo[[ LjeYa IkhY Wi[ IbWd Wh[ h[]_ij[h[Z ehfkXb_Y h[iWb[ kdZ[h j [ L[Ykh_j_[i :Yj+ :YYehZ_d]bo) j [i[ i Wh[i m_bb X[ WXb[ je X[ h[[bo iebZ _d j [ fkXb_Y cWha[j kfed
_iikWdY[ ikX [Yj je Wffb_YWXb[ l[ij_d] h[gk_h[c[dji+khj [h) XWi[Z ed i Wh[i ekjijWdZ_d] Wi e [Y[cX[h 0.) /-/0) ebZ[hi e W ikXijWdj_Wb dkcX[h e i Wh[i e ekh bWii
; Yecced ijeYa WZ h_] ji) ikX [Yj je Y[hjW_d YedZ_j_edi) je h[gk_h[ ki je _b[ h[]_ijhWj_ed ijWj[c[dji eh j [ fkXb_Y h[iWb[ eikY i Wh[i eh je _dYbkZ[ ikY i Wh[i _d h[]_ijhWj_ed ijWj[c[dji j Wj m[ cWo _b[ eh ki eh ej [h ijeYa ebZ[hi+HE DUAL CLASS STRUCTURE OF OUR COMMON STOC HAS THE EFFECT OF CONCENTRATING VOTING CONTROL WITH OUR CO FOUNDERSIMOTH ,ROWN AND OSEPH WILLINGER OUR DIRECTORS OUR PRINCIPAL STOC HOLDERS AND THEIR RESPECTIVE AFFILIATES WHICH
LIMITS OR PRECLUDES THE ABILIT OF OUR OTHER STOC HOLDERS TO INFLUENCE CORPORATE MATTERS INCLUDING THE ELECTION OF
DIRECTORS AND THE APPROVAL OF AN CHANGE OF CONTROL TRANSACTION
Hkh bWii ; Yecced ijeYa Wi .- lej[i f[h i Wh[ WdZ ekh bWii : Yecced ijeYa Wi ed[ lej[ f[h i Wh[+ Fh+
Sm_bb_d][h) ekh Ye* ekdZ[h WdZ _[ n[Ykj_l[ H _Y[h) WdZ Fh+ ;hemd) ekh Ye* ekdZ[h WdZ _[ BddelWj_ed H _Y[h) ekh
Z_h[Yjehi) ekh fh_dY_fWb ijeYa ebZ[hi) WdZ j [_h h[if[Yj_l[ W _b_Wj[i X[d[ _Y_Wbbo emd W i_]d_ _YWdj f[hY[djW][ e j [ lej_d]
fem[h e ekh ekjijWdZ_d] YWf_jWb ijeYa+
M [i[ ijeYa ebZ[hi m_bb Wl[ j [ WX_b_jo je Yedjheb j [ ekjYec[ e cWjj[hi ikXc_jj[Z je ekh ijeYa ebZ[hi eh WffhelWb)_dYbkZ_d] j [ [b[Yj_ed e ekh Z_h[Yjehi WdZ j [ WffhelWb e Wdo Y Wd][ e Yedjheb jhWdiWYj_ed+ M _i YedY[djhWj[Z Yedjheb m_bb
b_c_j eh fh[YbkZ[ j [ WX_b_jo e ekh ej [h ijeYa ebZ[hi je _d bk[dY[ YehfehWj[ cWjj[hi eh j [ eh[i[[WXb[ kjkh[) _dYbkZ_d] j [[b[Yj_ed e Z_h[Yjehi) Wc[dZc[dji e ekh eh]Wd_pWj_edWb ZeYkc[dji) WdZ Wdo c[h][h) Yedieb_ZWj_ed) iWb[ e Wbb eh
ikXijWdj_Wbbo Wbb e ekh Wii[ji) eh ej [h cW eh YehfehWj[ jhWdiWYj_ed h[gk_h_d] ijeYa ebZ[h WffhelWb+ Bd WZZ_j_ed) j _i cWo
fh[l[dj eh Z_iYekhW][ kdieb_Y_j[Z WYgk_i_j_ed fhefeiWbi eh e [hi eh ekh YWf_jWb ijeYa+kjkh[ jhWdi [hi Xo ebZ[hi e bWii ; Yecced ijeYa m_bb ][d[hWbbo h[ikbj _d j ei[ i Wh[i Yedl[hj_d] je bWii :Yecced ijeYa) ikX [Yj je b_c_j[Z [nY[fj_edi) ikY Wi Y[hjW_d jhWdi [hi [ [Yj[Z eh [ijWj[ fbWdd_d] fkhfei[i+ M [Yedl[hi_ed e bWii ; Yecced ijeYa je bWii : Yecced ijeYa m_bb Wl[ j [ [ [Yj) el[h j_c[) e _dYh[Wi_d] j [ h[bWj_l[
lej_d] fem[h e j ei[ ebZ[hi e bWii ; Yecced ijeYa m e h[jW_d j [_h i Wh[i _d j [ bed] j[hc+
E DO NOT INTEND TO PA DIVIDENDS FOR THE FORESEEABLE FUTURE
P[ Wl[ d[l[h Z[YbWh[Z eh fW_Z Wdo YWi Z_l_Z[dZi ed ekh YWf_jWb ijeYa) WdZ m[ Ze dej _dj[dZ je fWo Wdo YWi
Z_l_Z[dZi _d j [ eh[i[[WXb[ kjkh[+ P[ [nf[Yj je h[jW_d kjkh[ [Whd_d]i) _ Wdo) je kdZ j [ Z[l[befc[dj WdZ ]hemj e ekh
Xki_d[ii+ :do kjkh[ Z[j[hc_dWj_ed je fWo Z_l_Z[dZi ed ekh YWf_jWb ijeYa m_bb X[ Wj j [ Z_iYh[j_ed e ekh XeWhZ e Z_h[Yjehi+
DDITIONAL STOC ISSUANCES COULD RESULT IN SIGNIFICANT DILUTION TO OUR STOC HOLDERS
P[ cWo _iik[ WZZ_j_edWb [gk_jo i[Ykh_j_[i je hW_i[ YWf_jWb) je cWa[ WYgk_i_j_edi) eh eh W lWh_[jo e ej [h fkhfei[i+:ZZ_j_edWb _iikWdY[i e ekh ijeYa cWo X[ cWZ[ fkhikWdj je j [ [n[hY_i[ eh Yedl[hi_ed e d[m eh [n_ij_d] Yedl[hj_Xb[ Z[Xji[Ykh_j_[i) mWhhWdji) ijeYa efj_edi) eh ej [h [gk_jo _dY[dj_l[ WmWhZi je d[m WdZ [n_ij_d] i[hl_Y[ fhel_Z[hi+ :do ikY_iikWdY[i m_bb h[ikbj _d Z_bkj_ed je [n_ij_d] ebZ[hi e ekh ijeYa+ P[ h[bo ed [gk_jo*XWi[Z Yecf[diWj_ed Wi Wd _cfehjWdj jeeb
_d h[Yhk_j_d] WdZ h[jW_d_d] [cfbeo[[i+ M [ Wcekdj e Z_bkj_ed Zk[ je [gk_jo*XWi[Z Yecf[diWj_ed e ekh [cfbeo[[i WdZ
ej [h WZZ_j_edWb _iikWdY[i YekbZ X[ ikXijWdj_Wb+.ELAWARE LAW OUR STATUS AS A PUBLIC BENEFIT CORPORATION AND PROVISIONS IN OUR AMENDED AND RESTATED CERTIFICATE OFINCORPORATION AND AMENDED AND RESTATED B LAWS COULD MA E A MERGER TENDER OFFER OR PRO CONTEST MORE DIFFICULT LIMITATTEMPTS B OUR STOC HOLDERS TO REPLACE OR REMOVE OUR CURRENT MANAGEMENT AND DEPRESS THE MAR ET PRICE OF OUR -LASSCOMMON STOC
Ihel_i_edi _d ekh Wc[dZ[Z WdZ h[ijWj[Z Y[hj_ _YWj[ e _dYehfehWj_ed WdZ ekh Wc[dZ[Z WdZ h[ijWj[Z XobWmi cWo
Z_iYekhW][) Z[bWo eh fh[l[dj W c[h][h) WYgk_i_j_ed eh ej [h Y Wd][ _d Yedjheb e ki eh j[dZ[h e [h j Wj ijeYa ebZ[hi cWo
Yedi_Z[h WlehWXb[) _dYbkZ_d] jhWdiWYj_edi _d m _Y ijeYa ebZ[hi c_] j ej [hm_i[ h[Y[_l[ W fh[c_kc eh j [_h i Wh[i+ M [i[fhel_i_edi YekbZ Wbie b_c_j j [ fh_Y[ j Wj _dl[ijehi c_] j X[ m_bb_d] je fWo _d j [ kjkh[ eh i Wh[i e ekh bWii : Yecced
ijeYa) j [h[Xo Z[fh[ii_d] j [ cWha[j fh_Y[ e ekh bWii : Yecced ijeYa+

12

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kdWXb[ je ikYY[ii kbbo Yecfb[j[ Wdo ikY jhWdiWYj_edi ed WlehWXb[ j[hci eh Wj Wbb) eh je ikYY[ii kbbo _dj[]hWj[ Wdo WYgk_h[ZXki_d[ii) WY_b_j_[i) j[Y debe]_[i) eh fheZkYji _dje ekh Xki_d[ii eh h[jW_d Wdo a[o f[hiedd[b) ikffb_[hi) eh Ykijec[hi+khj [hceh[) [l[d _ m[ Yecfb[j[ ikY jhWdiWYj_edi WdZ [ [Yj_l[bo _dj[]hWj[ j [ d[mbo WYgk_h[Z Xki_d[ii eh ijhWj[]_Y
Wbb_WdY[ _dje ekh [n_ij_d] ef[hWj_edi) m[ cWo W_b je h[Wb_p[ j [ Wdj_Y_fWj[Z h[jkhdi WdZ,eh W_b je YWfjkh[ j [ [nf[Yj[ZX[d[ _ji) ikY Wi ijhWj[]_Y eh ef[hWj_edWb iod[h]_[i eh Yeij iWl_d]i+ M [ [ ehji h[gk_h[Z je Yecfb[j[ WdZ _dj[]hWj[ j [i[jhWdiWYj_edi YekbZ X[ [nf[di_l[ WdZ j_c[*Yedikc_d] WdZ cWo Z_ihkfj ekh ed]e_d] Xki_d[ii WdZ fh[l[dj cWdW][c[dj hec
eYki_d] ed ekh ef[hWj_edi+ B m[ Wh[ kdWXb[ je _Z[dj_ o ik_jWXb[ WYgk_i_j_edi eh ijhWj[]_Y h[bWj_edi _fi) eh _ m[ Wh[ kdWXb[ je_dj[]hWj[ Wdo WYgk_h[Z Xki_d[ii[i) WY_b_j_[i) j[Y debe]_[i) WdZ fheZkYji [ [Yj_l[bo) eh _ m[ W_b je h[Wb_p[ Wdj_Y_fWj[Zh[jkhdi eh YWfjkh[ [nf[Yj[Z X[d[ _ji) ekh Xki_d[ii) _dWdY_Wb YedZ_j_ed) WdZ h[ikbji e ef[hWj_edi YekbZ X[ WZl[hi[bo W [Yj[Z+HE RE UIREMENTS OF BEING A PUBLIC COMPAN MA INCREASE OUR COSTS STRAIN OUR RESOURCES DIVERT MANAGEMENT S
ATTENTION AND AFFECT OUR ABILIT TO ATTRACT AND RETAIN E ECUTIVE MANAGEMENT AND UALIFIED BOARD MEMBERS:i W fkXb_Y YecfWdo) m[ Wh[ ikX [Yj je j [ h[fehj_d] h[gk_h[c[dji e j [ nY Wd][ :Yj) j [ b_ij_d] ijWdZWhZi e
GWiZWg) WdZ ej [h Wffb_YWXb[ i[Ykh_j_[i hkb[i WdZ h[]kbWj_edi+ P[ [nf[Yj j Wj j [ h[gk_h[c[dji e j [i[ hkb[i WdZ
h[]kbWj_edi m_bb Yedj_dk[ je _dYh[Wi[ ekh b[]Wb) WYYekdj_d]) WdZ _dWdY_Wb Yecfb_WdY[ Yeiji) cWa[ iec[ WYj_l_j_[i ceh[
Z_ _Ykbj) j_c[*Yedikc_d]) WdZ Yeijbo) WdZ fbWY[ i_]d_ _YWdj ijhW_d ed ekh f[hiedd[b) ioij[ci) WdZ h[iekhY[i+ khj [hceh[)i[l[hWb c[cX[hi e ekh cWdW][c[dj j[Wc Ze dej Wl[ fh_eh [nf[h_[dY[ _d hkdd_d] W fkXb_Y YecfWdo+ eh [nWcfb[) j [nY Wd][ :Yj h[gk_h[i) Wced] ej [h j _d]i) j Wj m[ _b[ WddkWb) gkWhj[hbo) WdZ Ykhh[dj h[fehji m_j h[if[Yj je ekh Xki_d[iiWdZ h[ikbji e ef[hWj_edi+ :i W h[ikbj e j [ Yecfb[n_jo _dlebl[Z _d Yecfbo_d] m_j j [ hkb[i WdZ h[]kbWj_edi Wffb_YWXb[ jefkXb_Y YecfWd_[i) ekh cWdW][c[dj i Wjj[dj_ed cWo X[ Z_l[hj[Z hec ej [h Xki_d[ii YedY[hdi) m _Y YekbZ Whc ekh
Xki_d[ii) _dWdY_Wb YedZ_j_ed) WdZ h[ikbji e ef[hWj_edi+ :bj ek] m[ Wl[ Wbh[WZo _h[Z WZZ_j_edWb [cfbeo[[i je Wii_ij ki _d
Yecfbo_d] m_j j [i[ h[gk_h[c[dji) m[ cWo d[[Z je _h[ ceh[ [cfbeo[[i _d j [ kjkh[ eh [d]W][ ekji_Z[ YedikbjWdji)
m _Y m_bb _dYh[Wi[ ekh ef[hWj_d] [nf[di[i+Bd WZZ_j_ed) Y Wd]_d] bWmi) h[]kbWj_edi) WdZ ijWdZWhZi h[bWj_d] je YehfehWj[ ]el[hdWdY[ WdZ fkXb_Y Z_iYbeikh[ Wh[Yh[Wj_d] kdY[hjW_djo eh fkXb_Y YecfWd_[i) _dYh[Wi_d] b[]Wb WdZ _dWdY_Wb Yecfb_WdY[ Yeiji) WdZ cWa_d] iec[ WYj_l_j_[iceh[ j_c[*Yedikc_d]+ M [i[ bWmi) h[]kbWj_edi) WdZ ijWdZWhZi Wh[ ikX [Yj je lWho_d] _dj[hfh[jWj_edi) _d cWdo YWi[i Zk[ jej [_h bWYa e if[Y_ _Y_jo) WdZ) Wi W h[ikbj) j [_h Wffb_YWj_ed _d fhWYj_Y[ cWo [lebl[ el[h j_c[ Wi d[m ]k_ZWdY[ _i fhel_Z[Z Xoh[]kbWjeho WdZ ]el[hd_d] XeZ_[i+ M _i YekbZ h[ikbj _d Yedj_dk_d] kdY[hjW_djo h[]WhZ_d] Yecfb_WdY[ cWjj[hi WdZ _] [h Yeiji
d[Y[ii_jWj[Z Xo ed]e_d] h[l_i_edi je Z_iYbeikh[ WdZ ]el[hdWdY[ fhWYj_Y[i+ P[ _dj[dZ je _dl[ij ikXijWdj_Wb h[iekhY[i jeYecfbo m_j [lebl_d] bWmi) h[]kbWj_edi) WdZ ijWdZWhZi) WdZ j _i _dl[ijc[dj cWo h[ikbj _d _dYh[Wi[Z ][d[hWb WdZ
WZc_d_ijhWj_l[ [nf[di[i WdZ W Z_l[hi_ed e cWdW][c[dj i j_c[ WdZ Wjj[dj_ed hec Xki_d[ii ef[hWj_edi je Yecfb_WdY[
WYj_l_j_[i+ B ekh [ ehji je Yecfbo m_j d[m bWmi) h[]kbWj_edi) WdZ ijWdZWhZi Z_ [h hec j [ WYj_l_j_[i _dj[dZ[Z Xoh[]kbWjeho eh ]el[hd_d] XeZ_[i Zk[ je WcX_]k_j_[i h[bWj[Z je j [_h Wffb_YWj_ed WdZ fhWYj_Y[) h[]kbWjeho Wkj eh_j_[i cWo_d_j_Wj[ b[]Wb fheY[[Z_d]i W]W_dij ki) WdZ ekh Xki_d[ii cWo X[ Whc[Z+ :i W fkXb_Y YecfWdo j Wj _i ikX [Yj je j [i[ d[mhkb[i WdZ h[]kbWj_edi) _j Wi X[[d ceh[ [nf[di_l[ eh ki je eXjW_d Z_h[Yjeh WdZ e _Y[h b_WX_b_jo _dikhWdY[ YecfWh[Z je Wi W

15

fh_lWj[ YecfWdo) WdZ m[ cWo X[ h[gk_h[Z je WYY[fj h[ZkY[Z Yel[hW][ eh _dYkh ikXijWdj_Wbbo _] [h Yeiji je eXjW_d Yel[hW][+
M [i[ WYjehi YekbZ Wbie cWa[ _j ceh[ Z_ _Ykbj eh ki je WjjhWYj WdZ h[jW_d gkWb_ _[Z c[cX[hi e ekh XeWhZ e Z_h[Yjehi)
fWhj_YkbWhbo c[cX[hi m e YWd i[hl[ ed ekh WkZ_j WdZ Yecf[diWj_ed WdZ b[WZ[hi _f cWdW][c[dj Yecc_jj[[i) WdZ gkWb_ _[Z[n[Ykj_l[ e _Y[hi+:i W h[ikbj e j [ Z_iYbeikh[ eXb_]Wj_edi h[gk_h[Z e W fkXb_Y YecfWdo) ekh Xki_d[ii WdZ _dWdY_Wb YedZ_j_ed _i ceh[
l_i_Xb[ j Wd _j mWi Wi W fh_lWj[ YecfWdo) m _Y cWo h[ikbj _d Wd _dYh[Wi[Z h_ia e j h[Wj[d[Z eh WYjkWb b_j_]Wj_ed) _dYbkZ_d]
Xo Yecf[j_jehi WdZ ej [h j _hZ fWhj_[i+ B ikY YbW_ci Wh[ ikYY[ii kb) ekh Xki_d[ii) _dWdY_Wb YedZ_j_ed) WdZ h[ikbji eef[hWj_edi mekbZ X[ Whc[Z) WdZ [l[d _ j [ YbW_ci Ze dej h[ikbj _d b_j_]Wj_ed eh Wh[ h[iebl[Z _d ekh Wleh) j [i[ YbW_ci) WdZ
j [ j_c[ WdZ h[iekhY[i d[Y[iiWho je h[iebl[ j [c) mekbZ Z_l[hj j [ h[iekhY[i e ekh cWdW][c[dj WdZ Whc ekh Xki_d[ii)_dWdY_Wb YedZ_j_ed) WdZ h[ikbji e ef[hWj_edi+
S A RESULT OF BEING A PUBLIC COMPAN WE ARE OBLIGATED TO DEVELOP AND MAINTAIN PROPER AND EFFECTIVE INTERNAL CONTROLOVER FINANCIAL REPORTING AND AN FAILURE TO MAINTAIN THE ADE UAC OF THESE INTERNAL CONTROLS MA ADVERSEL AFFECTINVESTOR CONFIDENCE IN OUR COMPAN AND AS A RESULT THE VALUE OF OUR -LASS COMMON STOC
P[ Wh[ h[gk_h[Z) fkhikWdj je L[Yj_ed 1-1 e j [ LWhXWd[i*Hnb[o :Yj) eh L[Yj_ed 1-1) je khd_i W h[fehj Xo
cWdW][c[dj ed) Wced] ej [h j _d]i) j [ [ [Yj_l[d[ii e ekh _dj[hdWb Yedjheb el[h _dWdY_Wb h[fehj_d]+ M _i Wii[iic[djh[gk_h[i Z_iYbeikh[ e Wdo cWj[h_Wb m[Wad[ii[i _Z[dj_ _[Z Xo ekh cWdW][c[dj _d ekh _dj[hdWb Yedjheb el[h _dWdY_Wb
h[fehj_d]+ Bd WZZ_j_ed) ekh _dZ[f[dZ[dj h[]_ij[h[Z fkXb_Y WYYekdj_d] _hc m_bb X[ h[gk_h[Z je Wjj[ij je j [ [ [Yj_l[d[ii eekh _dj[hdWb Yedjheb el[h _dWdY_Wb h[fehj_d] _d ekh _hij WddkWb h[fehj h[gk_h[Z je X[ _b[Z m_j j [ Lebbem_d] j [ ZWj[m[ Wh[ de bed][h Wd y[c[h]_d] ]hemj YecfWdo+z Hkh Yecfb_WdY[ m_j L[Yj_ed 1-1 Wi h[gk_h[Z WdZ m_bb Yedj_dk[ jeh[gk_h[ j Wj m[ _dYkh ikXijWdj_Wb [nf[di[i WdZ [nf[dZ i_]d_ _YWdj cWdW][c[dj [ ehji+ P[ Wl[ WdZ m_bb b_a[bo d[[Z je _h[
WZZ_j_edWb WYYekdj_d] WdZ _dWdY_Wb ijW m_j Wffhefh_Wj[ fkXb_Y YecfWdo [nf[h_[dY[ WdZ j[Y d_YWb WYYekdj_d] ademb[Z][WdZ Yecf_b[ j [ ioij[c WdZ fheY[ii ZeYkc[djWj_ed d[Y[iiWho je f[h ehc j [ [lWbkWj_ed d[[Z[Z je Yecfbo m_j L[Yj_ed
1-1+kh_d] j [ [lWbkWj_ed WdZ j[ij_d] fheY[ii e ekh _dj[hdWb Yedjhebi) _ m[ _Z[dj_ o ed[ eh ceh[ cWj[h_Wb m[Wad[ii[i _dekh _dj[hdWb Yedjheb el[h _dWdY_Wb h[fehj_d]) m[ m_bb X[ kdWXb[ je Y[hj_ o j Wj ekh _dj[hdWb Yedjheb el[h _dWdY_Wb h[fehj_d] _i[ [Yj_l[+ P[ YWddej Wiikh[ oek j Wj j [h[ m_bb dej X[ cWj[h_Wb m[Wad[ii[i eh i_]d_ _YWdj Z[ _Y_[dY_[i _d ekh _dj[hdWb Yedjhebel[h _dWdY_Wb h[fehj_d] _d j [ kjkh[+ :do W_bkh[ je cW_djW_d _dj[hdWb Yedjheb el[h _dWdY_Wb h[fehj_d] YekbZ i[l[h[bo _d _X_j
ekh WX_b_jo je WYYkhWj[bo h[fehj ekh _dWdY_Wb YedZ_j_ed eh h[ikbji e ef[hWj_edi+ B m[ Wh[ kdWXb[ je YedYbkZ[ j Wj ekh _dj[hdWb
Yedjheb el[h _dWdY_Wb h[fehj_d] _i [ [Yj_l[) eh _ ekh _dZ[f[dZ[dj h[]_ij[h[Z fkXb_Y WYYekdj_d] _hc Z[j[hc_d[i m[ Wl[ WcWj[h_Wb m[Wad[ii eh i_]d_ _YWdj Z[ _Y_[dYo _d ekh _dj[hdWb Yedjheb el[h _dWdY_Wb h[fehj_d]) m[ YekbZ bei[ _dl[ijehYed _Z[dY[ _d j [ WYYkhWYo WdZ Yecfb[j[d[ii e ekh _dWdY_Wb h[fehji) j [ cWha[j fh_Y[ e ekh bWii : Yecced ijeYa YekbZ
Z[Yb_d[) WdZ m[ YekbZ X[ ikX [Yj je iWdYj_edi eh _dl[ij_]Wj_edi Xo j [ Leh ej [h h[]kbWjeho Wkj eh_j_[i+ W_bkh[ je h[c[ZoWdo cWj[h_Wb m[Wad[ii _d ekh _dj[hdWb Yedjheb el[h _dWdY_Wb h[fehj_d]) eh je _cfb[c[dj eh cW_djW_d ej [h [ [Yj_l[ Yedjheb
ioij[ci h[gk_h[Z e fkXb_Y YecfWd_[i) YekbZ Wbie h[ijh_Yj ekh kjkh[ WYY[ii je j [ YWf_jWb cWha[ji+E ARE AN EMERGING GROWTH COMPAN AND WE CANNOT BE CERTAIN IF THE REDUCED REPORTING AND DISCLOSURE RE UIREMENTS
APPLICABLE TO EMERGING GROWTH COMPANIES WILL MA E OUR -LASS COMMON STOC LESS ATTRACTIVE TO INVESTORSP[ Wh[ Ykhh[djbo Wd y[c[h]_d] ]hemj YecfWdo)z Wi Z[ _d[Z _d j [ CkcfijWhj Hkh ;ki_d[ii LjWhjkfi :Yj e /-./) eh
CH;L :Yj) WdZ m[ cWo jWa[ WZlWdjW][ e Y[hjW_d [n[cfj_edi hec h[fehj_d] h[gk_h[c[dji j Wj Wh[ Wffb_YWXb[ je ej [hfkXb_Y YecfWd_[i j Wj Wh[ dej y[c[h]_d] ]hemj YecfWd_[i)z _dYbkZ_d] j [ WkZ_jeh Wjj[ijWj_ed h[gk_h[c[dji e L[Yj_ed 1-1)
h[ZkY[Z Z_iYbeikh[ eXb_]Wj_edi h[]WhZ_d] [n[Ykj_l[ Yecf[diWj_ed _d ekh f[h_eZ_Y h[fehji WdZ fheno ijWj[c[dji) WdZ[n[cfj_edi hec j [ h[gk_h[c[dji e ebZ_d] W ded*X_dZ_d] WZl_ieho lej[ ed [n[Ykj_l[ Yecf[diWj_ed WdZ ijeYa ebZ[hWffhelWb e Wdo ]ebZ[d fWhWY kj[ fWoc[dji dej fh[l_ekibo Wffhel[Z+ IkhikWdj je L[Yj_ed .-4 e j [ CH;L :Yj) Wi Wd[c[h]_d] ]hemj YecfWdo) m[ Wl[ [b[Yj[Z je ki[ j [ [nj[dZ[Z jhWdi_j_ed f[h_eZ eh Yecfbo_d] m_j d[m eh h[l_i[ZWYYekdj_d] ijWdZWhZi kdj_b j ei[ ijWdZWhZi mekbZ ej [hm_i[ Wffbo je fh_lWj[ YecfWd_[i+ :i W h[ikbj) ekh Yedieb_ZWj[Z_dWdY_Wb ijWj[c[dji cWo dej X[ YecfWhWXb[ je j [ _dWdY_Wb ijWj[c[dji e _iik[hi m e Wh[ h[gk_h[Z je Yecfbo m_j j [[ [Yj_l[ ZWj[i eh d[m eh h[l_i[Z WYYekdj_d] ijWdZWhZi j Wj Wh[ Wffb_YWXb[ je fkXb_Y YecfWd_[i) m _Y cWo cWa[ ekh bWii
: Yecced ijeYa b[ii WjjhWYj_l[ je _dl[ijehi+ Bd WZZ_j_ed) _ m[ Y[Wi[ je X[ Wd [c[h]_d] ]hemj YecfWdo) m[ m_bb de bed][hX[ WXb[ je ki[ j [ [nj[dZ[Z jhWdi_j_ed f[h_eZ eh Yecfbo_d] m_j d[m eh h[l_i[Z WYYekdj_d] ijWdZWhZi+
P[ m_bb h[cW_d Wd [c[h]_d] ]hemj YecfWdo kdj_b j [ [Whb_[ij e 7 %.& [Y[cX[h 0.) /-/3) j [ bWij ZWo e j [ _iYWbo[Wh ebbem_d] j [ _ j Wdd_l[hiWho e ekh _d_j_Wb fkXb_Y e [h_d]8 %/& j [ bWij ZWo e j [ _hij _iYWb o[Wh _d m _Y ekh WddkWb]heii h[l[dk[ _i .+/02 X_bb_ed eh ceh[8 %0& j [ ZWj[ ed m _Y m[ Wl[) Zkh_d] j [ fh[l_eki hebb_d] j h[[*o[Wh f[h_eZ)16

_iik[Z ceh[ j Wd . X_bb_ed _d ded*Yedl[hj_Xb[ Z[Xj i[Ykh_j_[i8 WdZ %1& j [ ZWj[ m[ gkWb_ o Wi W ybWh][ WYY[b[hWj[Z _b[h)z
m_j Wj b[Wij 4-- c_bb_ed e [gk_jo i[Ykh_j_[i [bZ Xo ded*W _b_Wj[i+P[ YWddej fh[Z_Yj _ _dl[ijehi m_bb _dZ ekh bWii : Yecced ijeYa b[ii WjjhWYj_l[ _ m[ Y eei[ je h[bo ed j [i[[n[cfj_edi+ eh [nWcfb[) _ m[ Ze dej WZefj W d[m eh h[l_i[Z WYYekdj_d] ijWdZWhZ) ekh kjkh[ h[ikbji e ef[hWj_edi cWo dej
X[ YecfWhWXb[ je j [ h[ikbji e ef[hWj_edi e Y[hjW_d ej [h YecfWd_[i _d ekh _dZkijho j Wj WZefj[Z ikY ijWdZWhZi+ B iec[_dl[ijehi _dZ ekh bWii : Yecced ijeYa b[ii WjjhWYj_l[ Wi W h[ikbj) j [h[ cWo X[ W b[ii WYj_l[ jhWZ_d] cWha[j eh ekh bWii
: Yecced ijeYa) WdZ ekh ijeYa fh_Y[ cWo X[ ceh[ lebWj_b[+
3F SECURITIES OR INDUSTR ANAL STS DO NOT PUBLISH RESEARCH OR PUBLISH INACCURATE OR UNFAVORABLE RESEARCH ABOUT OUR
BUSINESS THE PRICE OF OUR -LASS COMMON STOC AND TRADING VOLUME COULD DECLINE
M [ jhWZ_d] cWha[j eh ekh bWii : Yecced ijeYa Z[f[dZi _d fWhj ed j [ h[i[WhY WdZ h[fehji j Wj i[Ykh_j_[i eh_dZkijho WdWboiji fkXb_i WXekj ki eh ekh Xki_d[ii) ekh cWha[j WdZ ekh Yecf[j_jehi+ P[ Ze dej Wl[ Wdo Yedjheb el[h j [i[WdWboiji+ B [m i[Ykh_j_[i WdWboiji Yecc[dY[ Yel[hW][ e ki) eh _ _dZkijho WdWboiji Y[Wi[ Yel[hW][ e ki) j [ jhWZ_d] fh_Y[eh ekh bWii : Yecced ijeYa mekbZ X[ d[]Wj_l[bo W [Yj[Z+ B ed[ eh ceh[ e j [ WdWboiji m e Yel[h ki Zemd]hWZ[ ekhbWii : Yecced ijeYa eh fkXb_i _dWYYkhWj[ eh kd WlehWXb[ h[i[WhY WXekj ekh Xki_d[ii) ekh bWii : Yecced ijeYa fh_Y[
mekbZ b_a[bo Z[Yb_d[+ B ed[ eh ceh[ e j [i[ WdWboiji Y[Wi[ Yel[hW][ e ki eh W_b je fkXb_i h[fehji ed ki h[]kbWhbo)
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lebkc[ je Z[Yb_d[+
E MA INCUR LOSSES FROM FRAUD OR THEFT
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h[ikbj _d ki fWo_d] _] [h [[i eh W [Yj_d] ekh WX_b_jo je WYY[fj Yh[Z_j YWhZi eh fWoc[dj+ Hkh W_bkh[ je WZ[gkWj[bo fh[l[djhWkZkb[dj jhWdiWYj_edi YekbZ ZWcW][ ekh h[fkjWj_ed) h[ikbj _d b_j_]Wj_ed eh h[]kbWjeho WYj_ed) WdZ b[WZ je [nf[di[i j Wj
YekbZ ikXijWdj_Wbbo _cfWYj ekh h[ikbji e ef[hWj_edi+:ZZ_j_edWbbo) m[ Wl[ eYYWi_edWbbo _d j [ fWij X[[d) WdZ cWo _d j [ kjkh[ X[) ikX [Yj je hWkZkb[dj fkhY Wi[i Xo_dZ_l_ZkWbi fkhY Wi_d] ekh fheZkYji _d Xkba m_j j [ _dj[dj_ed e kdbWm kbbo h[i[bb_d] ikY fheZkYji Wj W fh[c_kc+ P _b[
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h[Ye]d_p[Z h[l[dk[ e /+- c_bb_ed fh_cWh_bo h[bWj[Z je j [ b_gk_ZWj_ed e Y[hjW_d _hij ][d[hWj_ed WffWh[b fheZkYji _d j [o[Wh [dZ[Z [Y[cX[h 0.) /-//) m _Y _i h[YehZ[Z m_j _d d[j h[l[dk[ ed j [ Yedieb_ZWj[Z ijWj[c[dj e ef[hWj_edi WdZ
Yecfh[ [di_l[ beii+ LkXi[gk[dj mh_j[*Zemdi e _dl[djeho Wh[ h[Ye]d_p[Z Wi fWhj e ekh h[]kbWh h[l_[mi e [dZ e b_ [)ibem*cel_d]) ZWcW][Z) WdZ [nY[ii _dl[djeho Wi Z[iYh_X[Z _d ceh[ Z[jW_b _d Gej[ /+ IGNIFICANT -CCOUNTING :OLICIES _d
Bj[c 5+ y _dWdY_Wb LjWj[c[dji WdZ Lkffb[c[djWho WjWz+
Hkh i[bb_d]) ][d[hWb) WdZ WZc_d_ijhWj_l[ [nf[di[ _d_j_Wj_l[i _dYbkZ[Z ibem_d] j [ fWY[ e YehfehWj[ d[m _h[i WdZ
XWYa _bbi eh Z[fWhj_d] [cfbeo[[i) h[ZkY_d] ekh ]beXWb YehfehWj[ meha ehY[) WdZ h[ZkY_d] YehfehWj[ e _Y[ ifWY[ je h[ b[Yj W
d[m oXh_Z meha_d] [dl_hedc[dj+ K[bWj[Z je j _i) m[ h[Ye]d_p[Z h[ijhkYjkh_d] [nf[di[i e -+5 c_bb_ed _d j [ o[Wh [dZ[Z[Y[cX[h 0.) /-//) m _Y _i h[YehZ[Z m_j _d h[ijhkYjkh_d] [nf[di[ ed j [ Yedieb_ZWj[Z ijWj[c[dj e ef[hWj_edi WdZ
Yecfh[ [di_l[ beii+ M [i[ [nf[di[i Wh[ fh_cWh_bo h[bWj[Z je i[l[hWdY[ WdZ ej [h [cfbeo[[ j[hc_dWj_ed*h[bWj[Z Yeiji
h[ikbj_d] hec j [ h[ZkYj_edi e ekh ]beXWb YehfehWj[ meha ehY[ _d /-// WdZ /-/0+ Bd /-// WdZ /-/0) m[ X[]Wd ikXb[Wi_d]
jme e ekh YehfehWj[ e _Y[ b[Wi[i _d j [ Nd_j[Z LjWj[i je ej [h j[dWdji+
Sf 8OQa _ 3TTSQaW[U Ab_ BS_T _ O[QS
Hkh _dWdY_Wb WdZ ef[hWj_d] YedZ_j_edi Wl[ X[[d) WdZ m_bb Yedj_dk[ je X[ W [Yj[Z Xo W dkcX[h e WYjehi) _dYbkZ_d]7
BILIT TO 1ROW ,RAND WARENESS AND .RIVE /FFICIENT -USTOMER C UISITION
M [ WX_b_jo je Yecckd_YWj[ ekh c_ii_ed e cWa_d] X[jj[h j _d]i _d W X[jj[h mWo _i _dj[]hWb je ekh ikYY[ii _d [d]W]_d]d[m Ykijec[hi WdZ _djheZkY_d] j [c je ekh fheZkYji WdZ XhWdZ+ :bbX_hZi _i ij_bb h[bWj_l[bo kdademd je Yedikc[himehbZm_Z[) kdZ[hiYeh_d] W bWh][ effehjkd_jo je iYWb[ ekh Ykijec[h XWi[ WdZ Zh_l[ kjkh[ ]hemj + Hkh Yedj_dk[Z eYki ed[b[lWj_d] ekh fheZkYj e [h_d]i YecX_d[Z m_j ekh Z_ [h[dj_Wj[Z XhWdZ WffheWY WdZ Wkj [dj_Y_jo _i Yh_j_YWb je WjjhWYj_d]d[m Ykijec[hi WdZ _dYh[Wi_d] Ybei[j i Wh[+ khj [h) m[ ckij Yedj_dk[ je [cf Wi_p[ ekh Yecc_jc[dj je f[efb[) j [ fbWd[j)WdZ ekh ijeYa ebZ[hi _d ehZ[h je khj [h _dYh[Wi[ ekh h[WY WdZ _] b_] j j [ _dj[]h_jo e ekh XhWdZ+ P[ X[b_[l[ ekh XhWdZ
ijh[d]j m_bb [dWXb[ ki je Yedj_dk[ je ]hem XhWdZ WmWh[d[ii) Wbbem_d] ki je Z[[f[d h[bWj_edi _fi m_j Yedikc[hi WdZ[nfWdZ ekh WYY[ii je ]beXWb cWha[ji+:i m[ Yedj_dk[ je iYWb[ WdZ Xk_bZ ekh ]beXWb XhWdZ WmWh[d[ii) ekh ]eWb _i je WYgk_h[ d[m Ykijec[hi _d W Yeij*[ [Yj_l[mWo+ P[ m_bb Yedj_dk[ je [lWbkWj[ ekh ]e*je*cWha[j ijhWj[]o) Xej _d j [ N+L+ WdZ _dj[hdWj_edWbbo) WdZ _dl[ij _d Ykijec[hWYgk_i_j_ed m _b[ j [ kdZ[hbo_d] Ykijec[h kd_j [Yedec_Yi _dZ_YWj[ j [ h[jkhd ed _dl[ijc[dj _i ijhed]+ M [ Yedj_dk[Z[n[Ykj_ed e ekh Ykijec[h WYgk_i_j_ed ijhWj[]o _i a[o je WYgk_h_d] ceh[ Ykijec[hi WdZ Zh_l_d] ]hemj WdZ fhe _jWX_b_jo eh
ekh Xki_d[ii+ Hkh WX_b_jo je WYgk_h[ ceh[ Ykijec[hi Z[f[dZi i_]d_ _YWdjbo ed W dkcX[h e WYjehi) _dYbkZ_d] j [ b[l[b WdZ
fWjj[hd e Yedikc[h if[dZ_d] _d j [ fheZkYj YWj[]eh_[i _d m _Y m[ ef[hWj[ WdZ ekh WX_b_jo je [nfWdZ ekh XhWdZ WmWh[d[ii+P[ Wbie fWhjd[h m_j i[b[Yj j _hZ*fWhjo h[jW_b[hi WdZ Z_ijh_Xkjehi je i[bb ekh fheZkYji _d ekh [ ehj je h[WY ceh[ Yedikc[hiWdZ Xk_bZ XhWdZ WmWh[d[ii+1ROWTHITHIN / ISTING -USTOMER ,ASE AND 3NCREASING -LOSET ;HARE

Bd WZZ_j_ed je i[[a_d] je WYgk_h[ d[m Ykijec[hi) m[ Yedj_dkekibo i[[a mWoi je [d]W][ m_j ekh XWi[ e [n_ij_d]
Ykijec[hi+ P[ W_c je ]hem ekh Ybei[j i Wh[ m_j _d ekh [n_ij_d] Ykijec[h XWi[ Xo eYki_d] WdZ Z[l[bef_d] ed ekh Yeh[hWdY _i[i+ P[ X[b_[l[ m[ ckij Yedj_dk[ je Xej _ddelWj[ m_j d[m fheZkYji WdZ eYki ed Yeh[ fheZkYji _d ehZ[h je Zh_l[
Yedikc[h [d]W][c[dj WdZ _dYh[Wi[ ekh Ybei[j i Wh[+ P _b[ m[ Yedj_dk[ je Ze j _i) m[ ckij YedijWdjbo [lWbkWj[ WdZ_cfhel[ ekh ijhWj[]o je Wdj_Y_fWj[ Ykhh[dj WdZ kjkh[ Yedikc[h fh[ [h[dY[i WdZ Z[cWdZi+ :j j [ iWc[ j_c[) _j _i Yh_j_YWb j Wj
m[ cW_djW_d ekh Yecc_jc[dj je e [h_d] Yec ehjWXb[ WdZ ikijW_dWXb[ fheZkYji+ Bd Yedd[Yj_ed m_j ekh ijhWj[]_Y
jhWdi ehcWj_ed fbWd WddekdY[Z _d FWhY /-/0) m[ Wh[ h[ eYki_d] ekh fheZkYj ijhWj[]o ed ekh Yeh[ hWdY _i[ fheZkYji+ Hkh23]hemj m_j _d ekh [n_ij_d] Ykijec[h XWi[ m_bb Z[f[dZ _d fWhj ed ekh ikYY[ii eYki_d] ekh fheZkYj ijhWj[]o je Wff[Wb je ekh[n_ij_d] Ykijec[hi+/ ECUTION OF UR ERTICAL ETAIL .ISTRIBUTION AND MNI -HANNEL ;TRATEG AND PTIMIZATION OF UR ;TORE 0LEET
Hkh bed]*j[hc ]hemj ijhWj[]o h[b_[i ed ekh WX_b_jo je ]hem WYheii ekh Z_]_jWb WdZ h[jW_b Y Wdd[bi) m _b[ ij_bb
cW_djW_d_d] ekh ]eWb e bed]*j[hc fhe _jWX_b_jo+ P[ X[b_[l[ Wd ecd_*Y Wdd[b Xko_d] [nf[h_[dY[ _i _cfehjWdj je c[[j_d] j [d[[Zi e ekh Ykijec[h XWi[+ :bj ek] m[ Yedj_dk[ je l_[m h[jW_b ijeh[i Wi a[o je h[WY _d] d[m Ykijec[hi WdZ _dYh[Wi_d]f[d[jhWj_ed e ecd_*Y Wdd[b Ykijec[hi) m[ fbWd je jho je efj_c_p[ ekh ijeh[ b[[j WdZ eYki ed [dikh_d] j Wj ekh h[jW_b ijeh[iWh[ [ _Y_[djbo Zh_l_d] Ykijec[h WYgk_i_j_ed+ M [i[ efj_c_pWj_ed [ ehji _dYbkZ[ W YecX_dWj_ed e [ ehji) _dYbkZ_d][lWbkWj_d] d[m ijeh[ ef[d_d]i) ibem_d] j [ fWY[ e d[m h[jW_b ijeh[ ef[d_d]i) Ybei_d] [n_ij_d] ijeh[i) _dl[ij_d] _d ijeh[cWha[j_d]) [nfWdZ_d] ekh j _hZ*fWhjo fWhjd[hi _fi) WdZ [nfbeh_d] j [ ki[ e j _hZ*fWhjo Z_ijh_Xkjehi _d Y[hjW_d _dj[hdWj_edWb
cWha[ji) ikY Wi j [ Z_ijh_Xkj_ed W]h[[c[dji [dj[h[Z _dje _d L[fj[cX[h /-/0 m_j Z_ijh_Xkjehi _d WdWZW WdZ Lekj Deh[W)WdZ j [ WZZ_j_edWb Z_ijh_Xkj_ed W]h[[c[dji m[ [nf[Yj je [dj[h _dje _d ej [h _dj[hdWj_edWb cWha[ji+Hkh ijeh[ Yekdj Xo fh_cWho ][e]hWf _YWb cWha[j _i fh[i[dj[Z _d j [ jWXb[ X[bem) Wi e j [ ZWj[i fh[i[dj[Z7Ea _S 5 b[a Pf B_W O_f 9S U_O]VWQOY

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1ROWING UR RODUCT 3NNOVATION LATFORM
BddelWj_ed Wi X[[d Yeh[ je j [ :bbX_hZi XhWdZ i_dY[ ekh _dY[fj_ed _d /-.2+ Hkh kjkh[ _ddelWj_ed WdZ fheZkYj f_f[b_d[m_bb Z[f[dZ) _d fWhj) ed ekh WX_b_jo je Wffbo ekh [nf[hj_i[ _d cWj[h_Wbi iY_[dY[ je iekhY[ WdZ Yecc[hY_Wb_p[ cWj[h_Wbi j Wj
Wh[ ikijW_dWXb[) ZkhWXb[) WdZ Yec ehjWXb[+ Hkh ikYY[ii _d b[l[hW]_d] j [i[ cWj[h_Wbi _d ekh fheZkYji _i fWhj_Wbbo h[b_Wdj ed
j [ WX_b_jo e ekh cWdk WYjkh_d] WdZ ikffbo Y W_d fWhjd[hi je fheZkY[ WdZ Z_ijh_Xkj[ j [i[ cWj[h_Wbi Wj iYWb[+ Bj Wbie jWa[icedj i e j[ij_d] X[ eh[ m[ Yecc[hY_Wb_p[ d[m cWj[h_Wbi WdZ fheZkYji) m _Y YekbZ YWki[ Z[bWoi _d ekh [n_ij_d] ]hemj
fbWdi+ Bd WZZ_j_ed) j [i[ _d_j_Wj_l[i cWo h[gk_h[ ed]e_d] _dl[ijc[dji j Wj YekbZ Z[bWo ekh WX_b_jo je WY _[l[ c[Z_kc je
bed]*j[hc fhe _jWX_b_jo+
BILIT TO ;CALE 3NFRASTRUCTURE FOR ROFITABLE 1ROWTH
Me ]hem ekh Xki_d[ii) m[ _dj[dZ je Yedj_dk[ je _cfhel[ ekh ef[hWj_edWb WdZ YWf_jWb [ _Y_[dY_[i WdZ j ek] j kbbo
efj_c_p[ ekh _d hWijhkYjkh[+ Hkh WX_b_jo je iYWb[ h[b_[i kfed ekh ikffbo Y W_d _d hWijhkYjkh[+ P[ X[b_[l[ ekh _dl[ijc[dji _d
Z_h[Yj WdZ c[Wd_d] kb h[bWj_edi _fi m_j Wbb e ekh fWhjd[hi) hec hWm cWj[h_Wbi ikffb_[hi je M_[h . cWdk WYjkh[hi WdZ
be]_ij_Yi fhel_Z[hi) [bfi fkj ki ed W fWj e WY _[l_d] fhe _jWXb[ ]hemj _d j [ kjkh[+ P[ m_bb Yedj_dk[ je cWa[ i_c_bWh_dl[ijc[dji _d Z[l[bef_d] h[bWj_edi _fi WYheii j [ kbb ikffbo Y W_d+ Feij _cfehjWdjbo) m[ Wh[ _hcbo Yecc_jj[Z jeh[ZkY_d] ekh YWhXed eejfh_dj WdZ ekh [dl_hedc[djWb _cfWYj+ M _i Yecc_jc[dj cWo h[gk_h[ Ykhh[dj WdZ kjkh[ _dl[ijc[dji)m _Y cWo h[ikbj _d _] [h [nf[di[i+-URRENTACROECONOMIC -ONDITIONS AND RENDS

edikc[hi Wh[ _dYh[Wi_d]bo X[Yec_d] ceh[ YediY_eki e j [ fheZkYji j [o fkhY Wi[ WdZ Wh[ i[[a_d] XhWdZi j Wj Wh[
h[ifedi_Xb[ WdZ fkhfei[*Zh_l[d+ edikc[hi _dYh[Wi_d] YWh[ _d j [ fheZkYji WdZ XhWdZi j [o jhkij Wi Yedjh_Xkj[Z jeYedj_dk[Z Z[cWdZ eh ekh fheZkYji+ Hkh ijWjki Wi W I; WdZ W ; ehf _] b_] j ekh Yecc_jc[dj je ikijW_dWX_b_jo WdZ ekh
fkhfei[ m _b[ fhel_Z_d] Wd eX [Yj_l[ h[ [h[dY[ fe_dj eh Yedikc[hi+ :i W fkhfei[*dWj_l[ YecfWdo) m[ X[b_[l[ m[ Wh[ m[bb*fei_j_ed[Z Wj j [ _dj[hi[Yj_ed e a[o cWYhe jh[dZi _cfWYj_d] ekh _dZkijho+
Aem[l[h) m[ Yedj_dk[ je ced_jeh WdZ h[ifedZ je [lebl_d] Z[l[befc[dji h[]WhZ_d] h[Y[dj cWYhe[Yedec_Y [l[dji_dYbkZ_d] [b[lWj[Z _d bWj_ed) h_i_d] _dj[h[ij hWj[i) b_gk_Z_jo YedY[hdi Wj) WdZ W_bkh[i e ) XWdai WdZ ej [h _dWdY_Wb_dij_jkj_edi) ikffbo Y W_d Z_ihkfj_edi) bkYjkWj_edi _d Ykhh[dYo [nY Wd][ hWj[i) WdZ ][efeb_j_YWb Yed b_Yji) m _Y Wl[ b[Z jekhj [h [Yedec_Y kdY[hjW_djo _d j [ ]beXWb [Yedeco+ M [i[ cWYhe[Yedec_Y YedZ_j_edi Wl[ WZ WdZ Wh[ b_a[bo je Yedj_dk[
Bd j [ j _hZ gkWhj[h e /-//) m[ ef[d[Z jme d[m _dj[hdWj_edWb ijeh[i WdZ WZ j h[[ ijeh[ b[Wi[i [nf_h[) h[ikbj_d] _d W d[j h[ZkYj_ed e ed[ b[Wi[+ Bd j [j _hZ gkWhj[h e /-/0) m[ jhWdi_j_ed[Z j [ ef[hWj_edi e j h[[ _dj[hdWj_edWb ijeh[i je Z_ijh_Xkjehi+

24je Wl[ WZl[hi[ Yedi[gk[dY[i ed Yedikc[h if[dZ_d]) _dYbkZ_d] j [ Xko_d] fWjj[hdi e ekh Ykijec[hi WdZ fheif[Yj_l[
Ykijec[hi+ L[[ j [ i[Yj_ed j_jb[Z yK_ia WYjehixK_iai K[bWj[Z je Hkh ;ki_d[ii) ;hWdZ) IheZkYji) WdZ BdZkijhoz _d IWhj B)
Bj[c .:+ K_ia WYjehi) eh khj [h Z[jW_bi+;EASONALIT
Hkh Xki_d[ii _i W [Yj[Z Xo ][d[hWb i[WiedWb jh[dZi Yecced je j [ h[jW_b eejm[Wh WdZ WffWh[b _dZkijho) m_j iWb[ijof_YWbbo bem[h _d j [ _hij gkWhj[h e j [ o[Wh WdZ jof_YWbbo _] [h Zkh_d] j [ [dZ*e *o[Wh eb_ZWo f[h_eZ j Wj Wbbi m_j _d
ekh ekhj gkWhj[h+5] [S[aT DS bYa

T A]S_OaW [ET EVENUE
P[ ][d[hWj[ d[j h[l[dk[ fh_cWh_bo hec iWb[i e ekh eejm[Wh WdZ WffWh[b fheZkYji+ P[ i[bb fheZkYji Z_h[Yjbo j hek]
ekh emd Z_]_jWb Y Wdd[bi %_dYbkZ_d] ekh m[Xi_j[i WdZ ceX_b[ Wff&) ekh b[Wi[Z h[jW_b ijeh[i) WdZ j _hZ*fWhjo h[jW_b[hi WdZ
Z_ijh_Xkjehi+ :i e [Y[cX[h 0.) /-/0) j [ cW eh_jo e ekh iWb[i Wh[ j hek] ekh Z_]_jWb Y Wdd[bi WdZ b[Wi[Z h[jW_b ijeh[i+K[l[dk[ _i h[Ye]d_p[Z m [d m[ iWj_i o ekh f[h ehcWdY[ eXb_]Wj_ed Xo jhWdi [hh_d] Yedjheb e j [ fhec_i[Z ]eeZi je j [Ykijec[h) d[j e WbbemWdY[i eh h[jkhdi) Z_iYekdji) WdZ Wdo jWn[i Yebb[Yj[Z hec Ykijec[hi+ M _i eYYkhi [_j [h kfed
i _fc[dj eh kfed h[Y[_fj) Z[f[dZ_d] ed j [ j[hci e iWb[+ P[ [nf[Yj el[hWbb iWb[i je Z[Yb_d[ _d /-/1) fh_cWh_bo Zh_l[d Xoj [ fbWdd[Z Ybeikh[ e .-*.2 ijeh[i _d j [ Nd_j[Z LjWj[i WdZ j [ _dj[hdWj_edWb jhWdi_j_edi Wi Z[iYh_X[Z WXel[+-OST OF EVENUEeij e h[l[dk[ Yedi_iji fh_cWh_bo e j [ Yeij e fkhY Wi[Z _dl[djeho) _dXekdZ WdZ ekjXekdZ i _ff_d] Yeiji) _cfehj
Zkj_[i) Z_ijh_Xkj_ed Y[dj[h WdZ h[bWj[Z [gk_fc[dj Yeiji) WdZ _dl[djeho mh_j[*Zemdi eh mh_j[*e i+ L _ff_d] Yeiji je h[Y[_l[fheZkYji hec ekh ikffb_[hi Wh[ _dYbkZ[Z _d j [ Yeij e _dl[djeho WdZ h[Ye]d_p[Z Wi Yeij e h[l[dk[ kfed j [ iWb[ efheZkYji je ekh Ykijec[hi+ P[ ][d[hWbbo [nf[Yj ekh Yeij e h[l[dk[ je Z[Yh[Wi[ eh _dYh[Wi[ _d WXiebkj[ ZebbWhi _d b_d[ m_jd[j h[l[dk[ bkYjkWj_edi+
1ROSS ROFIT AND 1ROSS

ARGIN@heii fhe _j h[fh[i[dji d[j h[l[dk[ b[ii j [ Yeij e h[l[dk[+ @heii cWh]_d _i ]heii fhe _j [nfh[ii[Z Wi W f[hY[djW][ ed[j h[l[dk[+ Hkh ]heii cWh]_d cWo bkYjkWj[ hec f[h_eZ je f[h_eZ XWi[Z ed W dkcX[h e WYjehi) _dYbkZ_d] Xki_d[iiekjYec[i) j [ c_n e fheZkYji m[ i[bb _d Z_ [h[dj ][e]hWf _[i WdZ Y Wdd[bi) fh_Y[ _dYh[Wi[i) fhecej_edWb WYj_l_j_[i) j [_ddelWj_ed _d_j_Wj_l[i m[ kdZ[hjWa[ _d [WY fheZkYj YWj[]eho) Yeij Zh_l[hi %_dYbkZ_d] YecceZ_jo fh_Y[i) jhWdifehjWj_ed
hWj[i) cWdk WYjkh_d] Yeiji&) WdZ _dl[djeho mh_j[*Zemdi eh mh_j[*e i) Wced] ej [h WYjehi+ P[ [nf[Yj j Wj j [i[ WYjehi m_bb
h[ikbj _d W ijhed][h ]heii cWh]_d fhe _b[ _d /-/1 WdZ X[oedZ+
PERATING / PENSEELLING 3ENERAL AND -DMINISTRATIVE E PENSE
L[bb_d]) ][d[hWb) WdZ WZc_d_ijhWj_l[ [nf[di[ %yL@#: [nf[di[z& Yedi_iji e f[hiedd[b WdZ h[bWj[Z Yeiji _dYbkZ_d]
iWbWh_[i) X[d[ _ji) Xedki[i) WdZ ijeYa*XWi[Z Yecf[diWj_ed eh ekh YehfehWj[ WdZ h[jW_b [cfbeo[[i) j _hZ*fWhjo fhe [ii_edWb[[i) _d ehcWj_ed j[Y debe]o) fWoc[dj fheY[ii_d] [[i) _n[Z WdZ lWh_WXb[ b[Wi[ Yeiji eh YehfehWj[ e _Y[i WdZ h[jW_b ijeh[i)Z[fh[Y_Wj_ed WdZ Wcehj_pWj_ed) ie jmWh[ Yeiji) b[]Wb [[i) WdZ ej [h WZc_d_ijhWj_l[ Yeiji WiieY_Wj[Z m_j ef[hWj_d] j [Xki_d[ii+kh_d] /-// WdZ /-/0) m[ h[ZkY[Z ekh ]beXWb YehfehWj[ meha ehY[ Xo 5" WdZ 6") h[if[Yj_l[bo) WdZ ikXb[Wi[Z jme e
ekh YehfehWj[ e _Y[i _d j [ Nd_j[Z LjWj[i Wi fWhj e Wd [ ehj je ijh[Wcb_d[ meha bemi WdZ bem[h ef[hWj_d] Yeij) Wi m[bb Wi[n[Ykj_d] ed Y[hjW_d ej [h Yeij Yedjheb WYj_edi) _dYbkZ_d] h[ZkY_d] ekh _h_d] WdZ Ykjj_d] Z_iYh[j_edWho if[dZ_d]+ P[ [nf[Yjj [i[ WYj_edi) je][j [h m_j ekh ijhWj[]_Y jhWdi ehcWj_ed fbWd ed Yeij WdZ YWi efj_c_pWj_ed) Wi WddekdY[Z _d FWhY /-/0)
je h[ZkY[ Y[hjW_d Yeiji _dYbkZ[Z _d L@#: [nf[di[) em[l[h) j [ Y Wd]_d] fh_Y[i e ]eeZi WdZ i[hl_Y[i YWki[Z Xo _d bWj_ed
WdZ ej [h cWYhe[Yedec_Y WYjehi cWo YWki[ bkYjkWj_edi _d L@#: [nf[di[) dejm_j ijWdZ_d] ekh Yeij Yedjheb WYj_edi+
7ARKETING 1 PENSE
FWha[j_d] [nf[di[ Yedi_iji e WZl[hj_i_d] Yeiji _dYkhh[Z je WYgk_h[ d[m Ykijec[hi) h[jW_d [n_ij_d] Ykijec[hi) WdZ
Xk_bZ ekh XhWdZ WmWh[d[ii+ P[ [nf[Yj cWha[j_d] [nf[di[ Wi W f[hY[djW][ e d[j h[l[dk[ je Yedj_dk[ je Z[Yh[Wi[ Wi m[

25

cWdW][ ekh Yeiji WdZ h[ifedZ je j [ fhecej_edWb [dl_hedc[dj) WdZ Wh[ fh_eh_j_p_d] ekh cWha[j_d] if[dZ je Wb_]d m_j ekh
fheZkYj ijhWj[]o+4MPAIRMENT 1 PENSE
BcfW_hc[dj [nf[di[ Yedi_iji e ded*YWi _cfW_hc[dj Y Wh][i h[bWj_d] je bed]*b_l[Z Wii[ji) m _Y _dYbkZ[ fhef[hjo WdZ[gk_fc[dj WdZ ef[hWj_d] b[Wi[ h_] j*e *ki[ Wii[ji+ BcfW_hc[dji Wh[ Z[j[hc_d[Z ki_d] ekh kZ]c[dj WXekj ekh Wdj_Y_fWj[ZWX_b_jo je Yedj_dk[ je ki[ bed]*b_l[Z Wii[ji) Ykhh[dj cWha[j WdZ [Yedec_Y YedZ_j_edi) WdZ j [_h [ [Yji XWi[Z ed _d ehcWj_ed
WlW_bWXb[ Wi e j [ ZWj[ e j [i[ Yedieb_ZWj[Z _dWdY_Wb ijWj[c[dji+Eed]*b_l[Z Wii[ji Wh[ h[l_[m[Z eh _cfW_hc[dj m [d[l[h [l[dji eh Y Wd][i _d Y_hYkcijWdY[i _dZ_YWj[ j Wj j [ YWhho_d]
Wcekdj e Wd Wii[j ]hekf cWo dej X[ h[Yel[hWXb[+ K[Yel[hWX_b_jo e Wii[ji je X[ [bZ WdZ ki[Z _i c[Wikh[Z Xo W
YecfWh_ied e j [ YWhho_d] Wcekdj e Wd Wii[j ]hekf je kjkh[ kdZ_iYekdj[Z d[j YWi bemi [nf[Yj[Z je X[ ][d[hWj[Z Xo j [Wii[ji+ B j [ YWhho_d] Wcekdj e Wd Wii[j ]hekf [nY[[Zi _ji [ij_cWj[Z kdZ_iYekdj[Z d[j kjkh[ YWi bemi) Wd _cfW_hc[djY Wh][ _i h[Ye]d_p[Z eh j [ Wcekdj Xo m _Y j [ YWhho_d] Wcekdj e j [ Wii[j ]hekf [nY[[Zi _ji W_h lWbk[+
ESTRUCTURING 1 PENSE
K[ijhkYjkh_d] [nf[di[ Yedi_iji e fhe [ii_edWb i[hl_Y[ [[i) i[l[hWdY[ WdZ ej [h [cfbeo[[*h[bWj[Z X[d[ _ji) WdZ ej [hc_iY[bbWd[eki Yeiji WiieY_Wj[Z m_j [n_j WdZ Z_ifeiWb WYj_l_j_[i+ P[ [nf[Yj h[ijhkYjkh_d] [nf[di[ je Z[Yh[Wi[ _d /-/1 Wi
YecfWh[Z je /-/0) Wi W h[ikbj e j [ [n[Ykj_ed e ekh FWhY /-/0 ijhWj[]_Y jhWdi ehcWj_ed fbWd+
5OSS FROM ;ALES OF ,USINESSES
Eeii hec iWb[i e Xki_d[ii[i Yedi_iji e beii[i WiieY_Wj[Z m_j j [ iWb[ e Y[hjW_d d[j Wii[ji ki[Z _d Yedd[Yj_ed m_jj [ ef[hWj_edi e ekh Xki_d[ii[i _d Lekj Deh[W WdZ WdWZW) _d L[fj[cX[h /-/0) XWi[Z ed j [ Z_ [h[dY[ X[jm[[d j [ d[jXeea lWbk[ e Wii[ji WdZ b_WX_b_j_[i iebZ W]W_dij j [ Yedi_Z[hWj_ed h[Y[_l[Z+3NTEREST 3NCOME
Bdj[h[ij _dYec[ fh_cWh_bo Yedi_iji e _dj[h[ij _dYec[ ][d[hWj[Z hec ekh YWi WdZ YWi [gk_lWb[dji) e i[j Xo _dj[h[ij[nf[di[ WiieY_Wj[Z m_j ekh Yh[Z_j W]h[[c[dj m_j CIFeh]Wd
Wi[ ;Wda) G+:) m _Y m[ h[ [h je Wi ekh h[Z_j:]h[[c[dj+ P[ [nf[Yj _dj[h[ij _dYec[ WdZ [nf[di[ je bkYjkWj[ XWi[Z ed ekh kjkh[ XWda XWbWdY[i) Yh[Z_j b_d[ kj_b_pWj_ed)
WdZ j [ _dj[h[ij hWj[ [dl_hedc[dj+THER / PENSE 3NCOME
Hj [h %[nf[di[& _dYec[ Yedi_iji e ]W_di eh beii[i ed eh[_]d Ykhh[dYo) ]W_di eh beii[i ed iWb[i e fhef[hjo WdZ[gk_fc[dj) WdZ Y Wd][i _d j [ W_h lWbk[ e ekh [gk_jo _dl[ijc[dji+
3NCOME A

ROVISION

Hkh fhel_i_ed eh _dYec[ jWn[i Yedi_iji e N+L+ [Z[hWb WdZ ijWj[ _dYec[ jWn[i WdZ _dYec[ jWn[i _d Y[hjW_d eh[_]dkh_iZ_Yj_edi _d m _Y m[ YedZkYj Xki_d[ii+ P[ h[YehZ Z[ [hh[Z jWn Wii[ji WdZ b_WX_b_j_[i XWi[Z ed Z_ [h[dY[i X[jm[[d j [Xeea WdZ jWn XWi[i e Wii[ji WdZ b_WX_b_j_[i+ M [ Z[ [hh[Z jWn Wii[ji WdZ b_WX_b_j_[i Wh[ YWbYkbWj[Z Xo Wffbo_d] [dWYj[Z jWn
hWj[i WdZ bWmi je jWnWXb[ o[Whi _d m _Y ikY Z_ [h[dY[i Wh[ [nf[Yj[Z je h[l[hi[+ ;[YWki[ m[ Wl[ W h[Y[dj _ijeho e fh[*jWn Xeea beii[i WdZ Wh[ [nf[Yj[Z je X[ _d W fh[*jWn Xeea beii fei_j_ed _d j [ d[Wh j[hc) W lWbkWj_ed WbbemWdY[ mWi
cW_djW_d[Z W]W_dij j [ Z[ [hh[Z jWn Wii[ji _d j [ Nd_j[Z LjWj[i) WdWZW) O_[jdWc) WdZ Aed] Ded] Wi e [Y[cX[h 0.)
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26

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PERATING / PENSES
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fhe [ii_edWb [[i WdZ Yedikbj_d] i[hl_Y[i) WdZ 0+1 c_bb_ed _dYh[Wi[ _d h[dj WdZ kj_b_j_[i Zk[ je ceh[ ijeh[i _d ef[hWj_ed) WdZ.+6 c_bb_ed _d f[hiedd[b WdZ h[bWj[Z [nf[di[i+ M [i[ _dYh[Wi[i m[h[ fWhj_Wbbo e i[j Xo Z[Yh[Wi[i e .+3 c_bb_ed _d_dikhWdY[ Yeiji) .+1 c_bb_ed _d Yh[Z_j YWhZ WdZ XWda [[i) WdZ .+- c_bb_ed _d Yecced ijeYa mWhhWdj [nf[di[) Wi m[bb Wi
h[ZkYj_edi _d h[jW_b Z[l[befc[dj Yeiji) [cfbeo[[ jhWl[b WdZ [nf[di[) WdZ ej [h c_iY[bbWd[eki ef[hWj_d] [nf[di[i+7ARKETING E PENSE
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4MPAIRMENT E PENSE
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Wii[ji WiieY_Wj[Z m_j Y[hjW_d e ekh h[jW_b ijeh[i+ESTRUCTURING E PENSE
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3NTEREST 3NCOME
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3NCOME A

ROVISION
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32

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G[j YWi ki[Z _d ef[hWj_d] WYj_l_j_[i cW_dbo Yedi_iji e ekh d[j beii WZ kij[Z eh Y[hjW_d ded*YWi _j[ci) _dYbkZ_d]
ijeYa*XWi[Z Yecf[diWj_ed) Z[fh[Y_Wj_ed WdZ Wcehj_pWj_ed e fhef[hjo WdZ [gk_fc[dj) _cfW_hc[dj [nf[di[) _dl[djeho mh_j[*
e i WdZ mh_j[*Zemdi) WdZ Y Wd][i _d ef[hWj_d] Wii[ji WdZ b_WX_b_j_[i Zkh_d] [WY o[Wh+kh_d] /-/0) d[j YWi ki[Z _d ef[hWj_d] WYj_l_j_[i mWi 0-+/ c_bb_ed) m _Y Yedi_ij[Z e W d[j beii e .2/+2 c_bb_ed
WdZ W d[j Z[Yh[Wi[ e 10+5 c_bb_ed _d ekh ef[hWj_d] Wii[ji WdZ b_WX_b_j_[i) fWhj_Wbbo e i[j Xo ded*YWi Y Wh][i e 45+1
c_bb_ed WZZ[Z XWYa je d[j beii+ M [ Y Wd][ _d ef[hWj_d] Wii[ji WdZ b_WX_b_j_[i mWi fh_cWh_bo Zk[ je W Z[Yh[Wi[ e 14+2
c_bb_ed _d _dl[djeho Zk[ je bem[h _dl[djeho ed WdZ+
kh_d] /-//) d[j YWi ki[Z _d ef[hWj_d] WYj_l_j_[i mWi 6-+3 c_bb_ed) m _Y Yedi_ij[Z e W d[j beii e .-.+1 c_bb_ed
WdZ W d[j _dYh[Wi[ e 1-+3 c_bb_ed _d ekh ef[hWj_d] Wii[ji WdZ b_WX_b_j_[i) fWhj_Wbbo e i[j Xo ded*YWi Y Wh][i e 2.+1
c_bb_ed WZZ[Z XWYa je d[j beii+ M [ Y Wd][ _d ef[hWj_d] Wii[ji WdZ b_WX_b_j_[i mWi fh_cWh_bo Zk[ je Wd _dYh[Wi[ e /1+4
c_bb_ed _d _dl[djeho Zk[ je _] [h _dl[djeho ed WdZ WdZ _] [h _dXekdZ h[_] j Yeiji) Wi m[bb Wi W Z[Yh[Wi[ e .5+2
c_bb_ed _d WYYekdji fWoWXb[ Zk[ je j_c_d] e fWoc[dji+
4NVESTING -CTIVITIESG[j YWi ki[Z _d _dl[ij_d] WYj_l_j_[i fh_cWh_bo h[bWj[i je YWf_jWb [nf[dZ_jkh[i je ikffehj ekh ]hemj WdZ _dl[ijc[dj _dfhef[hjo WdZ [gk_fc[dj eh [nfWdi_ed e ekh Xki_d[ii) fWhj_Wbbo e i[j Xo fheY[[Zi hec iWb[ e Xki_d[ii[i+G[j YWi ki[Z _d _dl[ij_d] WYj_l_j_[i _d /-/0 WdZ /-// mWi 4+4 c_bb_ed WdZ 0/+0 c_bb_ed) h[if[Yj_l[bo) WdZ Yedi_ij[Zfh_cWh_bo e YWi ekj bemi eh j [ fkhY Wi[i e fhef[hjo WdZ [gk_fc[dj je ikffehj j [ ef[d_d] e h[jW_b ijeh[i WYheii j [N+L+ WdZ _dj[hdWj_edWbbo+

33

2INANCING -CTIVITIESG[j YWi fhel_Z[Z Xo _dWdY_d] WYj_l_j_[i _d /-/0 mWi -+3 c_bb_ed) fh_cWh_bo Zk[ je d[j fheY[[Zi hec j [ [n[hY_i[ eijeYa efj_edi WdZ j [ _iikWdY[ e Yecced ijeYa kdZ[h j [ [cfbeo[[ ijeYa fkhY Wi[ fbWd) e i[j Xo jWn[i m_j [bZ ed[cfbeo[[ ijeYa WmWhZi+
G[j YWi fhel_Z[Z Xo _dWdY_d] WYj_l_j_[i _d /-// mWi 0+3 c_bb_ed) fh_cWh_bo Zk[ je d[j fheY[[Zi hec j [ [n[hY_i[ eijeYa efj_edi) j [ _iikWdY[ e Yecced ijeYa kdZ[h j [ [cfbeo[[ ijeYa fkhY Wi[ fbWd) WdZ j [ h[Y[_fj e W h[fWoc[dj eh W
ded*h[Yekhi[ fhec_iieho dej[) e i[j Xo fWoc[dji e Z[ [hh[Z e [h_d] Yeiji WdZ jWn[i m_j [bZ ed [cfbeo[[ ijeYa WmWhZi+
5_WaWQOY 3QQ b[aW[U 7 aW OaS
Hkh Yedieb_ZWj[Z _dWdY_Wb ijWj[c[dji WdZ j [ h[bWj[Z dej[i j [h[je _dYbkZ[Z [bi[m [h[ _d j _i :ddkWb K[fehj ed ehc.-*D Wh[ fh[fWh[Z _d WYYehZWdY[ m_j @::I+ M [ fh[fWhWj_ed e ekh Yedieb_ZWj[Z _dWdY_Wb ijWj[c[dji _d Yed ehc_jo m_j@::I h[gk_h[i ki je cWa[ [ij_cWj[i WdZ Wiikcfj_edi j Wj W [Yj j [ h[fehj[Z Wcekdji e Wii[ji) b_WX_b_j_[i) h[l[dk[) Yeiji
WdZ [nf[di[i) WdZ h[bWj[Z Z_iYbeikh[i+ P[ XWi[ ekh [ij_cWj[i ed _ijeh_YWb [nf[h_[dY[ WdZ ed lWh_eki ej [h Wiikcfj_edi
j Wj m[ X[b_[l[ je X[ h[WiedWXb[ kdZ[h j [ Y_hYkcijWdY[i+ :YjkWb h[ikbji YekbZ Z_ [h i_]d_ _YWdjbo hec j [ [ij_cWj[i cWZ[
Xo cWdW][c[dj+ Me j [ [nj[dj j Wj j [h[ Wh[ Z_ [h[dY[i X[jm[[d ekh [ij_cWj[i WdZ WYjkWb h[ikbji) ekh kjkh[ _dWdY_Wb
ijWj[c[dj fh[i[djWj_ed) _dWdY_Wb YedZ_j_ed) h[ikbji e ef[hWj_edi) WdZ YWi bemi m_bb X[ W [Yj[Z+P[ X[b_[l[ j Wj j [ ebbem_d] WYYekdj_d] [ij_cWj[i _dlebl[ W _] Z[]h[[ e kZ]c[dj WdZ Yecfb[n_jo+ :YYehZ_d]bo)
j [i[ Wh[ j [ feb_Y_[i m[ X[b_[l[ Wh[ j [ ceij Yh_j_YWb je W_Z _d kbbo kdZ[hijWdZ_d] WdZ [lWbkWj_d] ekh _dWdY_Wb YedZ_j_ed
WdZ h[ikbji e ekh ef[hWj_edi+ L[[ Gej[ /) IGNIFICANT -CCOUNTING :OLICIES) _d j [ dej[i je ekh Yedieb_ZWj[Z _dWdY_Wb
ijWj[c[dji _dYbkZ[Z _d IWhj BB) Bj[c 5) eh W Z[iYh_fj_ed e ekh ej [h i_]d_ _YWdj WYYekdj_d] feb_Y_[i WdZ [ij_cWj[i+3MPAIRMENT OF 5ONG 5IVED SSETS
P[ [lWbkWj[ j [ h[Yel[hWX_b_jo e fhef[hjo WdZ [gk_fc[dj) ef[hWj_d] b[Wi[ h_] j*e *ki[ Wii[ji) WdZ _Z[dj_ _WXb[_djWd]_Xb[ Wii[ji m_j Z[ _d_j[ b_l[i %ybed]*b_l[Z Wii[jiz& m [d[l[h [l[dji eh Y Wd][i _d Y_hYkcijWdY[i _dZ_YWj[ j Wj j [YWhho_d] Wcekdj e Wd Wii[j cWo dej X[ h[Yel[hWXb[+ l[dji j Wj jh_]][h W j[ij eh h[Yel[hWX_b_jo _dYbkZ[ cWj[h_Wb WZl[hi[Y Wd][i _d fhe [Yj[Z h[l[dk[i WdZ [nf[di[i) fh[i[dj YWi bem beii[i YecX_d[Z m_j W _ijeho e YWi bem beii[i)i_]d_ _YWdj d[]Wj_l[ _dZkijho eh [Yedec_Y jh[dZi) W Ykhh[dj [nf[YjWj_ed j Wj W bed]*b_l[Z Wii[j ]hekf m_bb X[ Z_ifei[Z ei_]d_ _YWdjbo X[ eh[ j [ [dZ e _ji ki[ kb b_ [) W i_]d_ _YWdj WZl[hi[ Y Wd][ _d j [ cWdd[h _d m _Y Wd Wii[j ]hekf _i ki[Z eh_d _ji f oi_YWb YedZ_j_ed) eh m [d j [h[ _i W Y Wd][ _d j [ Wii[j ]hekf_d]+ P [d W jh_]][h_d] [l[dj eYYkhi) W j[ij ehh[Yel[hWX_b_jo _i f[h ehc[Z) YecfWh_d] fhe [Yj[Z kdZ_iYekdj[Z kjkh[ YWi bemi je j [ YWhho_d] lWbk[ e j [ Wii[j ]hekf+:iikcfj_edi ki[Z _d j [i[ fhe [Yj[Z YWi bemi Wh[ Yedi_ij[dj m_j _dj[hdWb fbWdd_d]) WdZ _dYbkZ[ h[l[dk[ ]hemj hWj[i)]heii cWh]_di) WdZ ef[hWj_d] [nf[di[ _d h[bWj_ed je j [ Ykhh[dj [Yedec_Y [dl_hedc[dj WdZ ekh kjkh[ [nf[YjWj_edi)
Yecf[j_j_l[ WYjehi _d _ji lWh_eki cWha[ji) _d bWj_ed) h[l[dk[ jh[dZi WdZ ej [h h[b[lWdj [Yedec_Y WYjehi j Wj cWo _cfWYj j [Wii[j ]hekf kdZ[h [lWbkWj_ed+
Eed]*b_l[Z Wii[ji Wh[ h[l_[m[Z eh h[Yel[hWX_b_jo Wj j [ bem[ij b[l[b _d m _Y j [h[ Wh[ _Z[dj_ _WXb[ YWi bemi %yWii[j]hekfz&+ Bd j [ ekhj gkWhj[h e /-/0) _d h[ifedi[ je Y Wd][i _d j [ mWo cWdW][c[dj l_[mi j [ Xki_d[ii) m[ Y Wd][Z ekh
Wii[j ]hekf_d]i hec Yekdjho*b[l[b Wii[j ]hekfi je _dZ_l_ZkWb ijeh[ b[l[b Wii[j ]hekfi+ M [ YWhho_d] Wcekdj e W ijeh[ Wii[j]hekf _dYbkZ[i ijeh[i ef[hWj_d] b[Wi[ h_] j*e *ki[ Wii[ji WdZ fhef[hjo WdZ [gk_fc[dj) m _Y Yedi_iji fh_cWh_bo eb[Wi[ ebZ _cfhel[c[dji+ P[ [lWbkWj[ YehfehWj[ Wii[ji eh ej [h bed]*b_l[Z Wii[ji j Wj Wh[ dej ijeh[*if[Y_ _Y Wj j [Yedieb_ZWj[Z b[l[b+B j [ j[ij eh h[Yel[hWX_b_jo _Z[dj_ _[i W feii_Xb[ _cfW_hc[dj) j [ Wii[j ]hekf i W_h lWbk[ _i c[Wikh[Z WdZ _cfW_hc[dj[nf[di[ _i h[Ye]d_p[Z XWi[Z ed j [ Z_ [h[dY[ X[jm[[d j [ _dZ[f[dZ[dj W_h lWbk[ WdZ YWhho_d] lWbk[ e j [ Wii[j ]hekf+
P [d Wd _cfW_hc[dj beii _i h[Ye]d_p[Z eh Wii[ji je X[ [bZ WdZ ki[Z) j [ WZ kij[Z YWhho_d] Wcekdji e j ei[ Wii[ji Wh[
Z[fh[Y_Wj[Z el[h j [_h h[cW_d_d] ki[ kb b_ [+P[ Z[j[hc_d[Z j Wj jh_]][h_d] [l[dji) _dYbkZ_d] W Ykhh[dj*f[h_eZ WdZ _ijeho e ef[hWj_d] YWi bem beii[i) eYYkhh[ZZkh_d] /-/0 WdZ h[gk_h[Z Wd _cfW_hc[dj h[l_[m e ekh bed]*b_l[Z Wii[ji+ ;Wi[Z ed j [ h[ikbji e ekh kdZ_iYekdj[Z YWi
bem WdWboi_i) m[ _Z[dj_ _[Z Y[hjW_d Wii[j ]hekfi _d m _Y j [ fhe [Yj[Z kjkh[ kdZ_iYekdj[Z d[j YWi bemi m[h[ b[ii j Wd
j [ YWhho_d] lWbk[ e Wd Wii[j ]hekf+ eh j [i[ Wii[j ]hekfi) j [ Wii[ji m[h[ mh_jj[d Zemd je j [_h W_h lWbk[i) c[Wikh[Zfh_cWh_bo ed Wd _dZ[f[dZ[dj j _hZ*fWhjo lWbkWj_ed e j [i[ bed]*b_l[Z Wii[ji+:do cWj[h_Wb Y Wd][i _d j [ ikc e ekh kdZ_iYekdj[Z YWi bem [ij_cWj[i h[ikbj_d] hec Z_ [h[dj Wiikcfj_edi eh
Y Wd][i _d ZWjW ki[Z _d j [ j _hZ*fWhjo lWbkWj_edi Wi e
[Y[cX[h 0.) /-/0 eh j ei[ Wii[j ]hekfi _dYbkZ[Z _d ekh

34

[lWbkWj_ed YekbZ h[ikbj _d W cWj[h_Wb Y Wd][ _d j [ bed]*b_l[Z Wii[j _cfW_hc[dj Y Wh][ eh _iYWb o[Wh /-/0+ Hkh fhe [Yj_edi
Wh[ [ij_cWj[i) m _Y YekbZ lWho i_]d_ _YWdjbo) [_j [h WlehWXbo eh kd WlehWXbo) hec WYjkWb h[ikbji _ kjkh[ [Yedec_Y
YedZ_j_edi) Yedikc[h Z[cWdZ WdZ Yecf[j_j_l[ [dl_hedc[dji Z_ [h hec ekh [nf[YjWj_edi+
3NVENTOR
Bdl[djeho Yedi_iji e _d_i [Z ]eeZi) ijWj[Z Wj j [ bem[h e Yeij eh d[j h[Wb_pWXb[ lWbk[+ P[ lWbk[ ekh _dl[djeho ki_d]j [ m[_] j[Z*Wl[hW][ Yeij c[j eZ WdZ _dYbkZ[ fheZkYj Yeiji hec ekh ikffb_[hi) h[_] j) _cfehj Zkj_[i WdZ ej [h bWdZ_d]Yeiji+ P[ f[h_eZ_YWbbo h[l_[m _dl[djeho WdZ cWa[ fhel_i_edi Wi d[Y[iiWho je Wffhefh_Wj[bo lWbk[ [dZ e b_ [) ibem*cel_d])
ZWcW][Z) WdZ [nY[ii _dl[djeho+ Me Z[j[hc_d[ _ j [ lWbk[ e _dl[djeho h[gk_h[i W mh_j[*Zemd) m[ [ij_cWj[ j [ d[jh[Wb_pWXb[ lWbk[ e _dl[djeho Xo Yedi_Z[h_d] Ykhh[dj WdZ Wdj_Y_fWj[Z Z[cWdZ) Ykijec[h fh[ [h[dY[i WdZ Xko_d] jh[dZi) j [W][ e j [ c[hY WdZ_i[) WdZ fheZkYj gkWb_jo+ Bdl[djeho mh_j[*Zemdi Wh[ h[Ye]d_p[Z _d Yeij e h[l[dk[ _d j [ YedZ[di[ZYedieb_ZWj[Z ijWj[c[dji e ef[hWj_edi WdZ Yecfh[ [di_l[ beii+ Hkh h[i[hl[ [ij_cWj[i h[gk_h[ ki je cWa[ Wiikcfj_edi XWi[Zed j [ Ykhh[dj hWj[ e iWb[i) W][ e _dl[djeho) iWbWX_b_jo WdZ fhe _jWX_b_jo e _dl[djeho) Wbb e m _Y cWo X[ W [Yj[Z Xo
Y Wd][i _d ekh fheZkYj c_n WdZ Yedikc[h fh[ [h[dY[i+ M [i[ WZ kijc[dji Wh[ [ij_cWj[i m _Y YekbZ lWho i_]d_ _YWdjbo)[_j [h WlehWXbo eh kd WlehWXbo) hec WYjkWb h[gk_h[c[dji _ kjkh[ [Yedec_Y YedZ_j_edi) Ykijec[h Z[cWdZ eh ej [h WYjehi
Z_ [h hec [nf[YjWj_edi+
EVENUE ECOGNITION
Hkh fh_cWho iekhY[ e h[l[dk[ _i hec iWb[i e i e[i WdZ WffWh[b fheZkYji+ P[ Z[j[hc_d[ h[l[dk[ h[Ye]d_j_ed _d
WYYehZWdY[ m_j_dWdY_Wb :YYekdj_d] LjWdZWhZi ;eWhZ :YYekdj_d] LjWdZWhZi eZ_ _YWj_ed Mef_Y 3-3) EVENUE FROMONTRACTS IT
USTOMERS+ K[l[dk[ _i h[Ye]d_p[Z m [d jhWdi [h e Yedjheb je j [ Ykijec[h Wi eYYkhh[Z) m _Y _i [_j [hkfed i _fc[dj eh kfed h[Y[_fj) Z[f[dZ_d] ed j [ j[hci e iWb[+ M [ jhWdiWYj_ed fh_Y[ _i Z[j[hc_d[Z XWi[Z kfed j [ _dle_Y[ZiWb[i fh_Y[) b[ii Wdj_Y_fWj[Z iWb[i h[jkhdi hec WdZ Z_iYekdji je Ykijec[hi+ :i Ykijec[hi cWo h[jkhd fheZkYji) m[ h[YehZ W
h[i[hl[ eh [ij_cWj[Z fheZkYj h[jkhdi _d [WY h[fehj_d] f[h_eZ Wi W h[ZkYj_ed e d[j h[l[dk[+ P[ h[YehZ j [ [nf[Yj[ZYkijec[h h[ kdZ b_WX_b_jo Wi W h[ZkYj_ed je h[l[dk[) WdZ j [ [nf[Yj[Z _dl[djeho h_] j e h[Yel[ho Wi W h[ZkYj_ed e Yeij eh[l[dk[+ P[ X[b_[l[ h[l[dk[ h[Ye]d_j_ed _i ikX [Yj je kdY[hjW_djo Wi WYjkWb h[jkhd Yeiji YWd Z_ [h hec fh[l_eki [ij_cWj[i
XWi[Z ed j [ Wcekdj e Ykijec[h h[jkhdi eh [nY Wd][i) m _Y mekbZ h[ikbj _d WZ kijc[dji je j [ Wcekdj e b_WX_b_jo WdZ
Yehh[ifedZ_d] h[l[dk[ _d j [ f[h_eZ _d m _Y ikY Z_ [h[dY[i eYYkh+ Bd cWa_d] ikY [ij_cWj[i) m[ WdWbop[ _ijeh_YWb
h[jkhdi) _cfWYj e i[WiedWb_jo) Ykhh[dj [Yedec_Y WdZ cWha[j jh[dZi) Ykhh[dj Xki_d[ii fhWYj_Y[i) WdZ Y Wd][i _d Ykijec[hZ[cWdZ WdZ WYY[fjWdY[ e ekh fheZkYji+;TOC ,ASED -OMPENSATIONP[ c[Wikh[ WdZ h[Ye]d_p[ Yecf[diWj_ed [nf[di[ eh Wbb ijeYa*XWi[Z WmWhZi) _dYbkZ_d] ijeYa efj_edi WdZ h[ijh_Yj[ZijeYa kd_ji) eh KLNi) ]hWdj[Z je [cfbeo[[i) Z_h[Yjehi) WdZ ded*[cfbeo[[i) WdZ ijeYa fkhY Wi[ h_] ji ]hWdj[Z kdZ[h j [/-/. LII) eh LII K_] ji) je [cfbeo[[i) XWi[Z ed j [ [ij_cWj[Z W_h lWbk[ e j [ WmWhZi ed j [ ZWj[ e ]hWdj+ M [ W_hlWbk[ e [WY ijeYa efj_ed WdZ LII K_] j ]hWdj[Z _i [ij_cWj[Z ki_d] j [ ;bWYa*LY eb[i efj_ed*fh_Y_d] ceZ[b+ M [ W_hlWbk[ e [WY KLN WmWhZ _i XWi[Z ed j [ [ij_cWj[Z W_h lWbk[ e ekh Yecced ijeYa ed j [ ZWj[ e ]hWdj+
M [ ;bWYa*LY eb[i efj_ed fh_Y_d] ceZ[b h[gk_h[i j [ _dfkj e _] bo ikX [Yj_l[ Wiikcfj_edi) _dYbkZ_d] j [ W_h lWbk[ ej [ kdZ[hbo_d] Yecced ijeYa) j [ [nf[Yj[Z j[hc e j [ efj_ed) j [ [nf[Yj[Z lebWj_b_jo e j [ fh_Y[ e ekh Yecced ijeYa)
h_ia* h[[ _dj[h[ij hWj[i) WdZ j [ [nf[Yj[Z Z_l_Z[dZ o_[bZ e ekh Yecced ijeYa+ M [ Wiikcfj_edi ki[Z je Z[j[hc_d[ j [ W_hlWbk[ e j [ efj_ed WmWhZi h[fh[i[dj cWdW][c[dj i X[ij [ij_cWj[i+ M [i[ [ij_cWj[i _dlebl[ _d [h[dj kdY[hjW_dj_[i WdZ j [Wffb_YWj_ed e cWdW][c[dj i kZ]c[dj el[h j [ Wiikcfj_edi b_ij[Z X[bem+ M [ h[bWj[Z ijeYa*XWi[Z Yecf[diWj_ed [nf[di[_i h[Ye]d_p[Z ed W ijhW_] j*b_d[ XWi_i el[h j [ h[gk_i_j[ i[hl_Y[ f[h_eZ e j [ WmWhZi+ P[ WYYekdj eh eh [_jkh[i Wi j [oeYYkh _dij[WZ e [ij_cWj_d] j [ dkcX[h e WmWhZi [nf[Yj[Z je X[ eh [_j[Z+M [i[ Wiikcfj_edi WdZ [ij_cWj[i Wh[ Wi ebbemi7
2AIR VALUE OF COMMON STOCKxM [ W_h lWbk[ e ekh Yecced ijeYa _i Z[j[hc_d[Z Xo j [ Ybei_d] fh_Y[) ed j [ ]hWdj
ZWj[) e ekh Yecced ijeYa) m _Y _i jhWZ[Z ed GWiZWg+
1 PECTED DIVIDEND YIELDxP[ Wl[ d[l[h Z[YbWh[Z eh fW_Z Wdo YWi Z_l_Z[dZi WdZ Ze dej fh[i[djbo fbWd je fWo YWi
Z_l_Z[dZi _d j [ eh[i[[WXb[ kjkh[+ :i W h[ikbj) Wd [nf[Yj[Z Z_l_Z[dZ o_[bZ e p[he f[hY[dj _i ki[Z+1 PECTED VOLATILITYxM [ [nf[Yj[Z lebWj_b_jo _i [ij_cWj[Z Xo jWa_d] j [ Wl[hW][ _ijeh_Y fh_Y[ lebWj_b_jo eh _dZkijho
f[[hi) Yedi_ij_d] e i[l[hWb fkXb_Y YecfWd_[i _d ekh _dZkijho m _Y Wh[ [_j [h i_c_bWh _d i_p[) ijW][ e b_ [ YoYb[) eh _dWdY_Wb
b[l[hW][) el[h W f[h_eZ [gk_lWb[dj je j [ [nf[Yj[Z j[hc e j [ WmWhZi+
35

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