KONDOTEC REPORT(Year Ended March 31, 2017)

:($5(.21'27(&7RS0HVVDJH&RPSDQ\2YHUYLHZ+LVWRU\6WUHQJWKV%XVLQHVV)ORZ'LDJUDP%XVLQHVV0RGHO%XVLQHVV5HSRUW

7230(66$*(
5HFHQWO\ ZH RIWHQ KHDU QHZV UHSRUWV RQ 7KLVUHSRUWLVGHVLJQHGWRSXWWRJHWKHUWKH
GDPDJH LQIOLFWHG E\ HDUWKTXDNHV DQG YDULRXV UHSRUWLQJ PDWWHUV WKH &RPSDQ\
DEQRUPDO ZHDWKHU FRQGLWLRQV ,Q WKLV GLVFORVHVDQGZDVSUHSDUHGE\UHIHUHQFLQJ
SUHVHQWDJHSXUVXLQJDVXVWDLQDEOHVRFLHW\ WKH ,QWHUQDWLRQDO ,QWHJUDWHG 5HSRUWLQJLV D FKDOOHQJH 7KH .21'27(& *URXS KDV )UDPHZRUN ZLWK D YLHZ WR SURYLGLQJ
EHHQ PDNLQJ HIIRUWV HDFK DQG HYHU\ GD\ LQIRUPDWLRQ LQ RUGHU WR KDYH PRUH
VLQFHLWVHVWDEOLVKPHQWLQWRFDUU\RXW VWDNHKROGHUV JDLQ D EHWWHU XQGHUVWDQGLQJLWV UHVSRQVLELOLWLHV DV D FRUSRUDWLRQ EDVHG RIRXU*URXS
RQWKHFRUSRUDWHSKLORVRSK\n:HVWULYHWR 
FRQWULEXWH WR WKH FUHDWLRQ RI DQ DIIOXHQW $VZHVWULYHWRFRQWLQXH VHUYLQJEHKLQGWKH
VRFLHW\ E\ QXUWXULQJ RXU HPSOR\HHV ZKR VFHQHV DFFRPPRGDWLQJ GLYHUVH FXVWRPHUZRXOGVKDSHWKHIXWXUHDQGE\FRQGXFWLQJ QHHGV ZH ZRXOG JUHDWO\ DSSUHFLDWH \RXU
FRUSRUDWH DFWLYLWLHV ZLWK LQQRYDWLYH DQG FRQWLQXHGXQGHUVWDQGLQJ DQGVXSSRUWSLRQHHULQJZD\| 㻼㼞㼑㼟㼕㼐㼑㼚㼠㻌㼍㼚㼐㻌㻾㼑㼜㼞㼑㼟㼑㼚㼠㼍㼠㼕㼢㼑㻌㻰㼕㼞㼑㼏㼠㼛㼞ᴾ

㻷㼍㼠㼟㼡㼔㼕㼗㼛㻌㻷㼛㼚㼐㼛㻌)RUZDUG(YHU VLQFH LWV HVWDEOLVKPHQW WKH .21'27(&$IIDLUV 'LYLVLRQ ZKLFK LV D XQLW UHVSRQVLEOH IRU*URXS KDV EHHQ FRPPLWWHG WR FDUU\LQJ RXW LWV,5 DQG &65 DQG WKH 6DOHV +HDGTXDUWHUV 7KHEXVLQHVVDFWLYLWLHVLQOLQHZLWKWKHWLPHVE\UHSRUWSURYLGHVRXUDSSURDFKHVLQWKHWKUHHNH\XSGDWLQJWKHOLQHXSRISURGXFWVDQG

DUHDV RI HQYLURQPHQW VRFLHW\ DQG JRYHUQDQFH

PHUFKDQGLVHKDQGOHGZKLOHFRQVWDQWO\ZLWKUHVSRQGLQJ WR WKH FKDQJLQJ WLPHV *LYHQ WKLVEXVLQHVV DFWLYLWLHV LQ PLQG DQG ZLWK D YLHZ WR

KLVWRU\ ZH KDYH RQFH DJDLQ RUJDQL]HG WKHIXUWKHU LQFUHDVLQJ WKH FRUSRUDWH YDOXH RI WKHRXWFRPHRIRXUPDQDJHPHQWDQGEXVLQHVV&RPSDQ\ E\ IRFXVLQJ SDUWLFXODUO\ RQ (6*DFWLYLWLHVDQGSXWWRJHWKHUDQGUHOHDVHGRXUILUVWLQYHVWPHQWZKLFKKDVEHHQDWWUDFWLQJDWWHQWLRQ,QWHJUDWHG 5HSRUW DV D WRRO WR KDYH PRUH

RYHUWKHSDVWIHZ\HDUVVWDNHKROGHUVJDLQDEHWWHUXQGHUVWDQGLQJ RIWKH
.21'27(&*URXS

RXU

FRQYHQWLRQDO

PDQDJHPHQWDQG

7RPR\D$QGR

7KH,QWHJUDWHG5HSRUWZDVSUHSDUHGE\DWHDP

6HQLRU([HFXWLYH'LUHFWRUDQG*HQHUDO

RIIHPDOHSURMHFWPHPEHUVDOOIURPWKH*HQHUDO

0DQDJHU0DQDJHPHQW+HDGTXDUWHUV   .21'27(&5(3257
ᴾ

5HODWHGOLQNV
7R.21'27(&ZHEVLWH +20(:($5(.21'27(& 

7$%/(2)&217(176&RPSDQ\2YHUYLHZ+LVWRU\

6WUHQJWKV%XVLQHVV)ORZ'LDJUDP%XVLQHVV0RGHO%XVLQHVV5HSRUW

.21'27(& 9,6,21

:($5(.21'27(&0HGLXPWHUP0DQDJHPHQW3ODQ*URZWK6WUDWHJ\

2SSRUWXQLWLHVDQG5LVNV

),1$1&,$/'$7$


&RQVROLGDWHG)LQDQFLDO+LJKOLJKWV&RQVROLGDWHG)LQDQFLDO3HUIRUPDQFH(6*%DVLF3ROLF\(19,5210(17(6*   (19,5210(17

3URPRWLQJ+DUPRQ\ZLWK&RPPXQLWLHVDQGWKH(QYLURQPHQW.HHSLQJ&ORVHWR&XVWRPHUV

7RJHWKHUZLWK6KDUHKROGHUVDQG
,QYHVWRUV

7RJHWKHUZLWK2XU(PSOR\HHV



63(&,$/&217(176

62&,$/   62&,$/

&RUSRUDWH*RYHUQDQFH

5HPXQHUDWLRQRI([HFXWLYHPHPEHUV

*29(51$1&(   *29(51$1&(

6833/(0(17

6WRFN,QIRUPDWLRQ2UJDQL]DWLRQ&KDUW

.21'27(&1HWZRUN&RQVROLGDWHG)LQDQFLDO6WDWHPHQWV  .21'27(&5(3257 

6833/(0(17㻌.21'27(&,1&,QWHJUDWHG5HSRUW

),1$1&,$/'$7$

.21'27(&9,6,21



:($5(.21'27(&WE AREKONDOTEC

7RS0HVVDJH&RPSDQ\2YHUYLHZ+LVWRU\6WUHQJWKV%XVLQHVV)ORZ'LDJUDP%XVLQHVV0RGHO%XVLQHVV5HSRUW3URILOHRI.21'27(&   .21'27(&5(3257


5HODWHGOLQNV
7R.21'27(&ZHEVLWH +20(&RPSDQ\.21'27(&,1&*URXSFRPSDQLHV6DQZD'HQ]DL&R/WG
.21'27(&,17(51$7,21$/ 7+$,/$1' &2/7'&+82+*,.(1&R/WG

.DWVXKLNR.RQGR6DNDLJDZD1LVKLNX2VDND-DSDQ
7RN\R+HDGTXDUWHUV0LQDPL6XQD.RWRNX7RN\R
7KH&RPSDQ\HVWDEOLVKHG7RN\R+HDGTXDUWHUVRQ-XO\DQGRSHUDWHVRQDWZRKHDGTXDUWHUVV\VWHP
&RQVROLGDWHG $VRI0DUFK &DSLWDOVWRFN

PLOOLRQ\HQ $VRI0DUFK /LVWHGVWRFNPDUNHW

7RN\R6WRFN([FKDQJH )LUVW6HFWLRQ %XVLQHVVDUHDV







0DMRULWHPVKDQGOHG

(19,5210(17

1XPEHURI(PSOR\HHV

0DQXIDFWXULQJSURFXUHPHQWDQGVDOHRILQGXVWULDOPDWHULDOVSULPDULO\LQWKHUHWDLOKDUGZDUHEXVLQHVV0DQXIDFWXULQJSURFXUHPHQWDQGVDOHRIVWUXFWXUDOVWHHOPDWHULDOVPDLQO\IRUVWHHOIDEULFDWRUV3URFXUHPHQWDQGVDOHRIHOHFWULFDOHTXLSPHQWIRUHOHFWULFDOZRUNRSHUDWRUVDQGHOHFWULFDODSSOLDQFHVWRUHV

62&,$/

+HDGRIILFH

3URGXFWV LQKRXVHPDQXIDFWXUHGSURGXFWV2(0SURGXFWV 
7XUQEXFNOHVEUDFHVVFDIIROGLQJFKDLQVVFUHZVDQFKRUEROWVFRQVWUXFWLRQPDWHULDOVPDFKLQHU\DQGHTXLSPHQWHWF
0HUFKDQGLVH SURGXFWVSURFXUHGIURPGRPHVWLFDQGIRUHLJQVXSSOLHUV2(0SURGXFWV +DUGZDUHFKDLQVZLUHURSHVVFUHZVFRQVWUXFWLRQPDWHULDOVOLJKWLQJHTXLSPHQWSDQHOERDUGVDLUFRQGLWLRQLQJHTXLSPHQWHFR
LWHPVHWF

1HWZRUN.21'27(&,1&RSHUDWLQJVLWHV
6DQZD'HQ]DL&R/WGRSHUDWLQJVLWHV
.21'27(&,17(51$7,21$/ 7+$,/$1' &2/7'&+82+*,.(1&R/WG $VRI0DUFK )DFWRULHV)RXUIDFWRULHVLQ-DSDQ  .21'27(&5(3257 *29(51$1&(

3UHVLGHQWDQG
5HSUHVHQWDWLYH
'LUHFWRU

-DQXDU\

6833/(0(17(VWDEOLVKHG

),1$1&,$/'$7$

&RPSDQ\QDPH

.21'27(& 9,6,21

.21'27(& ,1& LV D PDQXIDFWXUHU DQG ZKROHVDOH FRPSDQ\ WKDW PDLQWDLQV LQKRXVH IDFWRULHV DQG KDQGOHVDSSUR[LPDWHO\RUPRUHSURGXFWVDQGPHUFKDQGLVH
(YHU VLQFH LWV HVWDEOLVKPHQW .21'27(& KDV EHHQ SURYLGLQJ D ZLGH UDQJH RI EDVLF PDWHULDOV WKDW VXSSRUWLQIUDVWUXFWXUHVHVVHQWLDO IRU VRFLDO DFWLYLWLHV E\UHVSRQGLQJ WR WKH QHHGV RI FXVWRPHUV DQGH[SDQGLQJ SURGXFWVDQGPHUFKDQGLVHKDQGOHG%\VRGRLQJZHKDYHEHHQVXSSRUWLQJWKHHVWDEOLVKPHQWRIDQDIIOXHQWVRFLHW\:($5(.21'27(& &RPSDQ\2YHUYLHZ

:($5(.21'27(&7RS0HVVDJH&RPSDQ\2YHUYLHZ+LVWRU\6WUHQJWKV%XVLQHVV)ORZ'LDJUDP%XVLQHVV0RGHO%XVLQHVV5HSRUW+LVWRU\Since its establishment, the KONDOTEC has continued to grow through reinforcing its management platform and pursuing businessactivities based on its corporate philosophy.

>&RUSRUDWH3KLORVRSK\@

We strive to contribute to the creation of an affluent
society by nurturing our employees, who would shape thefuture, and by conducting corporate activities with
innovative and pioneering way.





‫(ٹ‬VWDEOLVKHG.RQGR6KRWHQ&R/WGLQ,]XR7DLVKRNX2VDND
%HJDQPDQXIDFWXULQJDQGVDOHRIKDUGZDUHIRUYHVVHOV  ‫ٹ‬%HJDQPDQXIDFWXULQJDQGVDOHRIKDUGZDUHDQGVFUHZVIRUFLYLOHQJLQHHULQJDQGFRQVWUXFWLRQXVH





‫&ٹ‬KDQJHGWKHFRPSDQ\QDPHWR.21'2
,521:25.6&2/7'‫ٹ‬5HORFDWHGWKHKHDGRIILFHWR6DNDLJDZD1LVKLNX2VDND






‫ٹ‬%HJDQSURGXFWLRQRIVKDFNOHV‫(ٹ‬VWDEOLVKHGWKH1HZ%XVLQHVV'LYLVLRQFXUUHQWO\6WUXFWXUDO6WHHO6DOHV'LYLVLRQ 





‫ٹ‬%HJDQSURGXFWLRQRIWXUQEXFNOHV‫&ٹ‬KDQJHGWKHFRPSDQ\QDPHWR.21'27(&,1&‫ٹ‬%HJDQVDOHRIZLUHURSHV ‫ٹ‬2SHQHG.\XVKX)DFWRU\‫ٹ‬2SHQHG.DQWR)DFWRU\





‫ٹ‬%HJDQSURGXFWLRQRIVFDIIROGLQJFKDLQV‫ٹ‬2SHQHG6DSSRUR)DFWRU\   .21'27(&5(3257


5HODWHGOLQNV
7R.21'27(&ZHEVLWH ‫ٹ‬/LVWHGRQWKH6HFRQG6HFWLRQRIWKH2VDND
6WRFN([FKDQJH‫ٹ‬7XUQHG.21'27(&,17(51$7,21$/
7+$,/$1' &2/7'LQWRDFRQVROLGDWHG
VXEVLGLDU\E\FDSLWDOLQFUHDVHDQGVXEVWDQWLDOO\PDNLQJWKHFRPSDQ\DIXOO\RZQHGVXEVLGLDU\‫ٹ‬/LVWHGRQWKH6HFRQG6HFWLRQRIWKH7RN\R
6WRFN([FKDQJH‫ٹ‬,PSOHPHQWHG<DQWDL'LVWULEXWLRQ:DUHKRXVHEDVHGRQDFRQWUDFWFRQFOXGHGZLWKD&KLQHVHORJLVWLFVWUDGLQJFRPSDQ\‫ٹ‬,QWURGXFHGWKHVKDUHKROGHU
LQFHQWLYHSODQ 2IIHULQJULFHFHUWLILFDWHVRQFHD\HDUEDVHGRQWKHQXPEHURIVKDUHVKHOG -XO\

‫(ٹ‬QWHUHGLQWRDQDJHQF\FRQWUDFWZLWKSHZDJLQ$XVWULD‫ٹ‬2SHQHG0RULRND2IILFH ,QGXVWULDO0DWHULDOV -DQXDU\

‫ٹ‬$FTXLUHGVKDUHVRI6DQZD'HQ]DL&R/WGZKLFKHQJDJHVLQWKHHOHFWULFDOHTXLSPHQW
EXVLQHVVWRPDNHWKHFRPSDQ\DFRQVROLGDWHG
VXEVLGLDU\‫ٹ‬2SHQHG1DJDQR2IILFH 6WUXFWXUDO6WHHO0DWHULDOV 

62&,$/‫ٹ‬2SHQHG6KLJD)DFWRU\)HEUXDU\

‫'ٹ‬HFLGHGRQWKHDFTXLVLWLRQRIWUHDVXU\VKDUHVXSWRPLOOLRQ\HQLQDFTXLVLWLRQSULFHDQG
PLOOLRQLQWKHQXPEHURIVKDUHVWRDFTXLUH

$SULO
‫ٹ‬2SHQHG.XPDPRWR2IILFH ,QGXVWULDO0DWHULDOV 

6833/(0(17‫'ٹ‬HVLJQDWHGDVWKH)LUVW6HFWLRQVWRFNE\WKH
7RN\R6WRFN([FKDQJHDQGWKH2VDND6WRFN([FKDQJH  .21'27(&5(3257 *29(51$1&(‫ٹ‬$FTXLUHGVKDUHVRI&+82+*,.(1&R/WGZKLFKHQJDJHVLQWKHEXVLQHVVRIGHVLJQDQG
PDQXIDFWXUHRIPDFKLQHU\DQGGHYLFHVWR
PDNHWKHFRPSDQ\DFRQVROLGDWHGVXEVLGLDU\),1$1&,$/'$7$



(19,5210(17&KDQJHVLQ1HW
6DOHV

.21'27(& 9,6,21

:($5(.21'27(& +20(&RPSDQ\+LVWRU\

:($5(.21'27(&7RS0HVVDJH&RPSDQ\2YHUYLHZ+LVWRU\6WUHQJWKV%XVLQHVV)ORZ'LDJUDP%XVLQHVV0RGHO%XVLQHVV5HSRUW6WUHQJWKV
2QH IHDWXUH RI WKH .21'27(& *URXS LV LWV VWDEOH
JURZWK LQ EXVLQHVV SHUIRUPDQFH DPLG FKDQJHV LQ
WKH H[WHUQDO HQYLURQPHQW 7KLV VWDEOH JURZWK LV
VXSSRUWHGE\WKHVDOHVSURPRWLRQDFWLYLWLHVWKDWWKH
*URXS KDV EHHQ IRFXVLQJ RQ RYHU PDQ\ \HDUV
8QGHUO\LQJIDFWRUVDUHnGLYHUVLW\RIFXVWRPHUVb
EXVLQHVV DUHDV| DQG nGLYHUVLW\ RI SURGXFWV DQGPHUFKDQGLVH|
,Q RUGHU WR FRQWLQXH PDLQWDLQLQJ WKHVH VWUHQJWKVDQG DFKLHYH VXVWDLQDEOH JURZWK ZH IRUPXODWHG
JURZWK VWUDWHJLHV DQG KDYH EHHQ WDNLQJ VWHSVDFFRUGLQJO\ *URZWK6WUDWHJ\3 ‫'ٹ‬LYHUVLW\RIFXVWRPHUVbEXVLQHVVDUHDV6LQFHWKH.21'27(&*URXSHQJDJHVLQWKHZKROHVDOH
EXVLQHVV PDLQO\ LQ WKH FRQVWUXFWLRQ LQGXVWU\ WKHUH LV
GHPDQG IRU WKH *URXSbV SURGXFWV DQG PHUFKDQGLVH
IURP FXVWRPHUV LQ D ZLGH UDQJH RI ILHOGV LQFOXGLQJFRQVWUXFWLRQFLYLOHQJLQHHULQJURDGVUDLOURDGVEULGJHVIRUHVWU\PDULQHDQGHQYLURQPHQWHWF,QRWKHUZRUGVWKHHQWLUHVRFLDOLQIUDVWUXFWXUHSODWIRUPLVWKHGHPDQGHURIRXUSURGXFWVDQGPHUFKDQGLVH

7KHUHIRUH HYHQ LI GHPDQG IURP D FHUWDLQ LQGXVWU\GHFOLQHV GXH WR FKDQJHV LQ WKH H[WHUQDO HQYLURQPHQW
DQGVDOHVIDOORXUVDOHVVWUXFWXUHHQDEOHVXVWRSURPRWHGLVWULEXWLRQ LQ RWKHU LQGXVWULHV DQG DFFXPXODWH VWDEOH
VDOHV

6WDUWRIFRQVROLGDWLRQ

7UDQVLWLRQRIFRQVWUXFWLRQ LQYHVWPHQW(trillion yen)


7UDQVLWLRQRIRSHUDWLQJSHUIRUPDQFH
(million yen)








&RQVWUXFWLRQLQYHVWPHQW QRPLQDOYDOXH 
1HWVDOHV2UGLQDU\SURILW
































‫'ٹ‬LYHUVLW\RISURGXFWVDQGPHUFKDQGLVH
7KH.21'27(&*URXSRQ WKHZKROHKDQGOHVDZLGH
VHOHFWLRQ RI SURGXFWV DQG PHUFKDQGLVH WRWDOLQJDSSUR[LPDWHO\  LWHPV DW SUHVHQW 7KHQXPEHU RI LWHPV LV VWHDGLO\ LQFUHDVLQJ EDVHG RQ
UHTXHVWV IURP FXVWRPHUV LQKRXVH GHYHORSPHQW
DQGIXWXUHGHPDQGSURMHFWLRQV   .21'27(&5(3257
 

6LQFH ZH DOVR KDYH D PDQXIDFWXUHU IXQFWLRQ LQ
SODFHZHQRWRQO\KDQGOHJHQHUDOSXUSRVHSURGXFWV
DQG PHUFKDQGLVH EXW DOVR FDUU\ RXW PDGHWRRUGHUSURGXFWLRQLQUHVSRQVHWRUHTXHVWVIURPFXVWRPHUV+HQFH RXU VWUHQJWK LV WKH FDSDELOLW\ WR
DFFRPPRGDWHQLFKHUHTXHVWV5HODWHGOLQNV
7R.21'27(&ZHEVLWH +20(,5

&RQVWUXFWLRQ FLYLOHQJLQHHULQJUHODWHG
0DQXIDFWXUHUVHWF  ,Q
KRXVH)DFWRU\

2YHUVHDVSURFXUHPHQW

+RXVHKROGDSSOLDQFH
PDQXIDFWXUHUV 








 3URGXFWV,QKRXVHPDQXIDFWXUHGSURGXFWVDQG2(0SURGXFWV,QGXVWULDO0DWHULDOV6WUXFWXUDO6WHHO
0DWHULDOV(OHFWULFDO(TXLSPHQW &XVWRPHUV$SSUR[LPDWHO\
0HUFKDQGLVHSXUFKDVHG

‫ٹ‬1XPEHURIFXVWRPHUVE\EXVLQHVVVHJPHQWV

),1$1&,$/'$7$

%XVLQHVV6HJPHQWV VDOHVFRQWULEXWLRQUDWLR (OHFWULFDO(TXLSPHQW

*HQHUDO
FRQVWUXFWLRQFRPSDQLHV7UDGLQJFRPSDQLHV(OHFWULFDODSSOLDQFH
VWRUHV2YHUVHDV6WUXFWXUDO6WHHO0DWHULDOV+DUGZDUH
VWRUHV:KROHVDOHUV$SSUR[LPDWHO\FXVWRPHUV ,QGXVWULDO
0DWHULDOV(19,5210(17+RPH
LPSURYHPHQW
FHQWHUHWF‫ٹ‬2YHUVHDVSURFXUHPHQW
LQFOXGHVSURGXFWVPDQXIDFWXUHGLQORFDO2(0IDFWRULHV‫ٹ‬3HUFHQWDJHRI>PDQXIDFWXUHUIXQFWLRQ@LQQHWVDOHV(QGXVHUV‫ٹ‬:HSURYLGHGLUHFWVDOHVRI
LQGXVWULDOPDWHULDOVDQGHOHFWULFDOHTXLSPHQWWR
VRPHHQGXVHUV‫)ٹ‬LHOGVRIGHPDQGIRU
SURGXFWVDQGPHUFKDQGLVH 3XEOLF3ULYDWH


62&,$/

(OHFWULFDOZRUNRSHUDWRUV*29(51$1&('HPDQGHUV>(QWLUHLQIUDVWUXFWXUH@
LUHLQIUDVWUXFWXUH@

6WHHO
IDEULFDWRUV

6833/(0(17&RQVWUXFWLRQFLYLOHQJLQHHULQJLQGXVWU\.21'27(& 9,6,21

6XSSOLHUV

:($5(.21'27(& %XVLQHVV)ORZ'LDJUDP  .21'27(&5(3257  

:($5(.21'27(&7RS0HVVDJH&RPSDQ\2YHUYLHZ+LVWRU\6WUHQJWKV%XVLQHVV)ORZ'LDJUDP%XVLQHVV0RGHO%XVLQHVV5HSRUW%XVLQHVV0RGHO+LVWRU\DQG6WUDWHJ\'LJHVW (YHUVLQFHLWZDVIRXQGHG.21'27(&KDVFRQWLQXHGWRUHVSR ‫ ܒܒ‬(VWDEOLVKHGIURPWKHUXLQVRIILUHDIWHUWKHZDU

6KLIWLQJRIEXVLQHVVIURPSRVWZDUUH ‫ ܒܒ‬*DLQLQJJURXQGLQ7RN\RDQGVKLIWLQJIURPnVHDWR
ODQG|

%HJDQLQKRXVHPDQXIDFWXULQJRISULPSOHPHQWDWLRQDFURVVWKHFRXQWU\2SHQLQJRI.\XVKX)DFWRU\DQGQDWLRQZLGH
EXVLQHVVGHSOR\PHQW:LWKWKHRSHQLQJRI.\XVKX)DFWRU\QDWLRQZLGHWRPDNHWKHEXVLQHVVSOD

 ‫ ܒܒ‬(VWDEOLVKPHQWRIGLUHFWVDOHVGLYLVLRQ(VWDEOLVKHGWKHQHZEXVLQHVVGLYLVLR ‫ ܒܒ‬7RGD\([FKDQJHOLVWLQJDQGH[SDQVLRQRIEXVLQHVVILHOGV([SDQGHGEXVLQHVVILHOGVDQGHQWHUH ‫ ܒܒ‬%XVLQHVVDFWLYLWLHV .21'27(&bVVWUHQJWKEDVHGRQ LWVKLVWRU\

(6*LQLWLDWLYHVWKDWIRUPWKHEDVHRIEXVLQHVVDFWLYLWLHV(6* 

3

,QGXVWULDO
0DWHULDOV([LVWLQJ%XVLQHVVHV'LYHUVLW\RIFXVWRPHUVb
EXVLQHVVDUHD'LYHUVLW\RISURGXFWV
6WDEOHILQDQFLDOSODWIRUP
4XLFNGHOLYHU\RIRUGHUPDGHSURGXFWV%UDQGSRZHUWUXVWHGLQ-DSDQDQGRYHUVHDV'HYHORSPHQWRIDJURXSRISURIHVVLRQDOVZLWKWHFKQLFDOVNLOOV$FWLYLWLHVRIGLYHUVHKXPDQUHVRXUFHV/RFDOFRPPXQLW\RULHQWHG
VDOHV PDUNHWLQJDFWLYLWLHV([LVWLQJEXVLQHVVDFWLYLWLHVDQGJURZWKVWUDWHJLHV6WUXFWXUDO
6WHHO0DWHULDOV*URZWK6WUDWHJLHVIRU([LVWLQJ%XVLQHVVHV
3

(OHFWULFDO(TXLSPHQW

1RQFRUH*URZWK6WUDWHJ\2WKHU6WUDWHJLHV3

(QKDQFHPHQWRI
&RUSRUDWH9DOXH

.H\1XPEHUV
1XPEHURILWHPVKDQGOHG
$SSUR[LPDWHO\
,WHPV
         ,W
WHPV





,QFOXGLQJLQKRXVHPDQXIDFWXUHGXIDSURGXFWVDQGPHUFKDQGLVH   .21'27(&5(3257

1XPEHURIFXVWRPHUVQDWLRQZLGHQQDWLRQZLGH $SSUR[LPDWHO\FRPSDQLHV         FRPS
SDQLHV

1XPEHURIQHZFXVWRPHUV
Q D\HDU 
LQD\HDU
FXVWRPHUV FXVVWRPHUV

7RWDOE\EXVLQHVVVHJPHQW 

1XPEHURIRSHUDWLQJVLWHV        RSHUDWLQJRSHUDWLQJVLWHV
R
JV








'RPHVWLFVLWHVRQO\ 

7KHQXPEHURIQHZGHDOVUHSUHVHQWVWKHQXPEHURIGHDOVH[SORLWHGWKLVILVFDO\HDUDQG
LQWKHSUHYLRXVILVFDO\HDUDQGIRUZKLFKDFWXDOVDOHVZHUHPDGHWKLVILVFDO\HDUHFRYHU\DFWLYLWLHVDQGFDVWLQJSURFHVVLQJWRIRUJLQJURGXFWVDQGLQFUHDVHGLWHPVKDQGOHGWRDFFRPPRGDWHDFFHOHUDWHGHIIRUWVWRSURPRWHLQIUDVWUXFWXUHVLJQLILFDQWO\VWUHQJWKHQHGSURGXFWLRQFDSDFLW\DQGDFWLYHO\FRQWLQXHGGHSOR\PHQWRIRSHUDWLQJVLWHVDWIRUPVROLG

Q FXUUHQWO\6WUXFWXUDO6WHHO6DOHV'LYLVLRQ LQUHVSRQVHWRWKHVOXPSLQFRQVWUXFWLRQGHPDQG

HGWKHHOHFWULFDOHTXLSPHQWEXVLQHVV 6DQZD'HQ]DL&R/WG HVWDEOLVKHGDVXEVLGLDU\LQ7KDLODQG

:KDW.21'27(&SURYLGHVWRVRFLHW\

3URYLGLQJDZLGHUDQJHRIEDVHPDWHULDOVWKDWVXSSRUWWKHHQWLUHLQIUDVWUXFWXUH        WRQV
WRQV






7RWDOIRUGRPHVWLFIDFWRULHV 

0DQDJHPHQWLQGLFDWRUV










52(



5DWLRRIIHPDOHVHPSOR\HG
S \

'2(













1XPEHURIQHZJUDGXDWHVHPSOR\HGLQWKHODVWILYH\HDUV  .21'27(&5(3257  

6833/(0(17$FWXDOSURGXFWLRQDWIDFWRULHV*29(51$1&(

62&,$/

(19,5210(17),1$1&,$/'$7$

>&RUSRUDWH3KLORVRSK\@:H VWULYH WR FRQWULEXWH WR WKH FUHDWLRQ RI DQ DIIOXHQW
VRFLHW\E\QXUWXULQJRXUHPSOR\HHVZKRZRXOGVKDSHWKHIXWXUH DQG E\ FRQGXFWLQJ FRUSRUDWH DFWLYLWLHV ZLWKLQQRYDWLYHDQGSLRQHHULQJZD\.21'27(& 9,6,21

RQGIOH[LEO\WRFKDQJHVLQWKHZRUOGDQGFKDQJHVWRWKHQHHGVRIFXVWRPHUV:($5(.21'27(& 

5HODWHGOLQNV
7R.21'27(&ZHEVLWH :($5(.21'27(&7RS0HVVDJH&RPSDQ\2YHUYLHZ+LVWRU\6WUHQJWKV%XVLQHVV)ORZ'LDJUDP%XVLQHVV0RGHO%XVLQHVV5HSRUW%XVLQHVV5HSRUW([LVWLQJEXVLQHVVHVt7KUHH
EXVLQHVVVHJPHQWV ,QGXVWULDO
0DWHULDOV 6WUXFWXUDO6WHHO0DWHULDOV(OHFWULFDO(TXLSPHQW‫ٹ‬,QGXVWULDO0DWHULDOV:LWK WKH UHWDLO KDUGZDUH EXVLQHVV DW WKH FRUH ZH PDQXIDFWXUH SURFXUH DQG VHOO FLYLOHQJLQHHULQJ DQG FRQVWUXFWLRQ PDWHULDOV PDFKLQHU\ DQG HTXLSPHQW 2I WKH VXEVLGLDULHV
.21'27(& ,17(51$7,21$/ 7+$,/$1'  &2 /7' DQG &+82+ *,.(1 &R /WG DUHLQFOXGHG
6XSSOLHUV

0DQXIDFWXUHUVHWFUHODWHGFRQVWUXFWLRQ &LYLOHQJLQHHULQJ)DFWRULHV2YHUVHDVSURFXUHPHQW

.21'27(&,QGXVWULDO0DWHULDOV&XVWRPHUV*HQHUDOFRQVWUXFWLRQFRPSDQLHV
7UDGLQJFRPSDQLHV2YHUVHDV+DUGZDUHVWRUHV:KROHVDOHUV+RPHLPSURYHPHQWFHQWHUHWF(QGXVHUV

1XPEHURIRSHUDWLQJVLWHV

.21'27(&,1&RSHUDWLQJVLWHV
6XEVLGLDULHV .21'27(&,17(51$7,21$/ 7+$,/$1' &2/7'    &+82+*,.(1&R/WG

1XPEHURIFXVWRPHUV$SSUR[LPDWHO\FRPSDQLHV

1XPEHURIQHZFXVWRPHUV FXVWRPHUV

1HWVDOHVRIQHZFXVWRPHUV PLOOLRQ\HQ
&KDUDFWHULVWLFV
嵣:LGHUDQJHRISURGXFWVDQGPHUFKDQGLVH
KDQGOHGVWDEOHSHUIRUPDQFH嵣(DUQLQJVGULYHU

7KHQXPEHURIQHZFXVWRPHUVDQGRIQHWVDOHVUHSUHVHQWWKHQXPEHUDQGQHWVDOHVRIFXVWRPHUVH[SORLWHGWKLV ILVFDO\HDUDQGLQWKHSUHYLRXVILVFDO\HDUDQGIRUZKLFKDFWXDOVDOHVZHUHPDGHWKLVILVFDO\HDU
  .21'27(&5(3257

2SHUDWLQJLQFRPHUDWLR2SHUDWLQJSURILWUDWLR



59.2䠂


















SODQ 

1HWVDOHV









2SHUDWLQJLQFRPH









2YHUYLHZRIWKH<HDU(QGHG0DUFK
3XEOLFLQYHVWPHQWVPRYHGDWDPRGHUDWHSDFHDQG
FRPSDQLHV ZHUH DFWLYH LQ SXUVXLQJ FDSLWDO
LQYHVWPHQWV &RQVHTXHQWO\ VDOHV RI FRQVWUXFWLRQ
VLWH HTXLSPHQW DQG KDXOLQJ HTXLSPHQW ZHUH
VWURQJ 0HDQZKLOH GHPDQG IRU SURGXFWV XVHG LQ
WHPSRUDU\ \DUGV DVVRFLDWHG ZLWK GHFRQWDPLQDWLRQZRUN DQG IRU IUDPHV IRU VRODU SRZHU JHQHUDWLRQZHUH

QRW DV KLJK DV IRU WKH \HDU EHIRUH ZKHQ VXFKGHPDQG FRQWULEXWHG WR LQFUHPHQWDO UHYHQXHV $V
D UHVXOW QHW VDOHV FDPH WR  PLOOLRQ \HQ
GRZQIURPD\HDUHDUOLHU
,Q WHUPV RI SURILW JURVV SURILW UDWLR RQ LPSRUWHG
SURGXFWV LPSURYHG DQG RSHUDWLQJ LQFRPH
LQFUHDVHG\HDURQ\HDUWRPLOOLRQ\HQ.21'27(& 9,6,21



1HWVDOHV),1$1&,$/'$7$



(19,5210(17&KDQJHVLQ1HW6DOHV PLOOLRQ\HQ 

62&,$/

3HUFHQWDJHRI7RWDO6DOHVSHUEXVLQHVVVHJPHQWPLOOLRQ\HQ :($5(.21'27(& 

5HODWHGOLQNV
7R.21'27(&ZHEVLWH JURZWK JRLQJ IRUZDUG LQFOXGH FRQGXFWLQJ VDOHV
DQG PDUNHWLQJ DFWLYLWLHV WKDW UHVSRQG WR
FRQFHQWUDWHG SXUFKDVLQJ DQG EXON SXUFKDVLQJ E\ODUJH WUDGLQJ FRPSDQLHV DQG JHQHUDO FRQVWUXFWLRQFRPSDQLHV LQ RUGHU WR LQFUHDVH RUGHUV LQ WKH
7RN\R PHWURSROLWDQ DUHD DQG H[SDQGLQJ VDOHVFKDQQHOVE\UHLQIRUFLQJRYHUVHDVWUDQVDFWLRQV%\ WDNLQJWKHVHLQLWLDWLYHVZHZLOODLP WR DFKLHYH
RXU WDUJHWV IRU WKH ILVFDO \HDU HQGLQJ 0DUFK  ZKLFK DUH QHW VDOHV RI  PLOOLRQ \HQ
DQGDQRSHUDWLQJ LQFRPHRIPLOOLRQ\HQ

6833/(0(17&RQVWUXFWLRQ ZRUN IRU WKH  7RN\R 2O\PSLF
DQG 3DUDO\PSLF *DPHV KDYH VWDUWHG DQG WKHGHPDQG DVVRFLDWHG ZLWK WKH HYHQW LV H[SHFWHG WRVSUHDG IURP WKH 7RN\R 0HWURSROLWDQ DFURVV WKHFRXQWU\ ERRVWLQJ GHPDQG IRU FRQVWUXFWLRQ RI
LQIUDVWUXFWXUH DQG IDFLOLWLHV 7R FDSWXUH WKHJURZLQJ GHPDQG ZH ZLOO WDNH VWHSV WR DWWUDFW
QHZ DQG GRUPDQW FXVWRPHUV DQG EXLOG XS RXUSURGXFWV DQG PHUFKDQGLVH OLQHV ZLWK FRPSHWLWLYHLWHPVWRLQFUHDVHVDOHV,QLWLDWLYHV ZH PXVW WDNH WRZDUG DFKLHYLQJ IXUWKHU

*29(51$1&(,QLWLDWLYHV*RLQJ)RUZDUG㻌

  .21'27(&5(3257  

:($5(.21'27(&7RS0HVVDJH&RPSDQ\2YHUYLHZ+LVWRU\6WUHQJWKV%XVLQHVV)ORZ'LDJUDP%XVLQHVV0RGHO%XVLQHVV5HSRUW([LVWLQJEXVLQHVVHVt7KUHH
EXVLQHVVVHJPHQWV ,QGXVWULDO 6WUXFWXUDO6WHHO0DWHULDOV0DWHULDOV(OHFWULFDO(TXLSPHQW

‫ٹ‬6WUXFWXUDOVWHHOPDWHULDOV :HPDQXIDFWXUHSURFXUHDQGVHOOFRQVWUXFWLRQUHODWHGPDWHULDOVIRUVWHHOIDEULFDWRUV6XSSOLHUV

0DQXIDFWXUHUVHWFUHODWHGFRQVWUXFWLRQ &LYLOHQJLQHHULQJ)DFWRULHV2YHUVHDVSURFXUHPHQW

.21'27(&

6WUXFWXUDO6WHHO0DWHULDOV&XVWRPHUV(QGXVHUV VWHHOIDEULFDWRUV 

1XPEHURIRSHUDWLQJVLWHV

.21'27(&,1&RSHUDWLQJVLWHV


1XPEHURIFXVWRPHUV$SSUR[LPDWHO\FRPSDQLHV

1XPEHURIQHZFXVWRPHUV FXVWRPHUV

1HWVDOHVRIQHZFXVWRPHUV PLOOLRQ\HQ
&KDUDFWHULVWLFV嵣2SHUDWLQJSHUIRUPDQFHLQFUHDVHVGHFUHDVHVLQFRQQHFWLRQZLWKWKHGHPDQGIRUVWHHOIUDPHV嵣+LJKSHUFHQWDJHRILQKRXVHPDQXIDFWXUHGSURGXFWV嵣+LJKPDUNHWVKDUH


7KHQXPEHURIQHZFXVWRPHUVDQGRIQHWVDOHVUHSUHVHQWWKHQXPEHUDQGQHWVDOHVRIFXVWRPHUVH[SORLWHGWKLV ILVFDO\HDUDQGLQWKHSUHYLRXVILVFDO\HDUDQGIRUZKLFKDFWXDOVDOHVZHUHPDGHWKLVILVFDO\HDU
  .21'27(&5(3257





24.7䠂

1HWVDOHV
2SHUDWLQJLQFRPHUDWLR2SHUDWLQJSURILWUDWLR
















SODQ 

1HWVDOHV









2SHUDWLQJLQFRPH











2YHUYLHZRIWKH<HDU(QGHG0DUFKVWHHOPDWHULDOVUHPDLQHGFRPSDUDWLYHO\VWURQJ$V
DUHVXOWQHWVDOHVLQFUHDVHG\HDURQ\HDUWRPLOOLRQ\HQ
,Q WHUPV RI SURILW DVDUHVXOWRIHIIRUWV WRUHGXFHPDQXIDFWXULQJ FRVWV RSHUDWLQJ LQFRPH LQFUHDVHG
IURPWKH\HDUEHIRUHWRPLOOLRQ\HQ

62&,$/

'HPDQG  IRU VWHHO IUDPHV DOWKRXJK DSSHDULQJ
VRPHZKDWZHDNLQWKHILUVWTXDUWHUWXUQHGRXWWR
EH IDYRUDEO\ VWDEOH IRU SULYDWH FRQVWUXFWLRQ
SURMHFWV GULYHQ E\ FRQVWUXFWLRQ RI KRWHOV LQ
DQWLFLSDWLRQRIJURZWKLQLQERXQGGHPDQGDQGE\
FRQVWUXFWLRQRIORJLVWLFVIDFLOLWLHVGXHWRWKHULVHLQ
HFRPPHUFH ,Q DGGLWLRQ RUGHUV IRU VWUXFWXUDO

.21'27(& 9,6,21



),1$1&,$/'$7$

&KDQJHVLQ1HW6DOHV PLOOLRQ\HQ (19,5210(17

3HUFHQWDJHRI7RWDO6DOHVSHUEXVLQHVVVHJPHQWPLOOLRQ\HQ :($5(.21'27(& 

5HODWHGOLQNV
7R.21'27(&ZHEVLWH 

WUDGLQJ FRPSDQLHV DQG ZLGHQLQJ RXU GLVWULEXWLRQQHWZRUN 7KLV LV WR EH GRQH E\ QRW RQO\ VHOOLQJDQFKRU EROWV EXW DOVR E\ HPSKDVL]LQJ WKHDWWUDFWLYH IHDWXUHV RI WKH DQFKRU FRQVWUXFWLRQ RI
XQGHUWDNLQJ LQVWDOODWLRQV XSRQ DFTXLULQJ D
FRQVWUXFWLRQ EXVLQHVV OLFHQVH WR DVVLVW LQ FRYHULQJ
WKH VKRUWDJH RI PDQSRZHU LQ WKH FRQVWUXFWLRQLQGXVWU\%\ WDNLQJ WKHVHLQLWLDWLYHVZH ZLOODLP WRDFKLHYH
RXU WDUJHWV IRU WKH ILVFDO \HDU HQGLQJ 0DUFK  ZKLFK DUH QHW VDOHV RI  PLOOLRQ \HQ
DQGDQRSHUDWLQJLQFRPHRIPLOOLRQ\HQ

6833/(0(17,Q H[SHFWDWLRQ WKDW WKH GHPDQG IRU VWHHO IUDPHVZLOO LQFUHDVH \HDU RQ \HDU GXH WR JURZLQJ FDSLWDO
LQYHVWPHQWV VXFK DV FRQVWUXFWLRQ UHODWHG WR WKH 7RN\R 2O\PSLF DQG 3DUDO\PSLF *DPHVODUJHVFDOHGLVWULEXWLRQZDUHKRXVHVDQG KRWHOVIRU
LQERXQG GHPDQG WKH .21'27(& *URXS ZLOODWWUDFW QHZ FXVWRPHUV ZKLOH ZRUNLQJ WR UHJDLQGRUPDQWFXVWRPHUVDQGERRVWVDOHVRISURGXFWVLQ
DQHIIRUWWRH[SDQGQHWVDOHV.H\ LQLWLDWLYHV WR WDNH WRZDUG DFKLHYLQJ IXUWKHUJURZWK DUH LQFUHDVLQJ RUGHUV UHODWHG WR
FRQVWUXFWLRQ SURMHFWV E\ VWUHQJWKHQLQJ VDOHV DQGPDUNHWLQJ DFWLYLWLHV WR ODUJH IDEULFDWRUV DQG VWHHO

*29(51$1&(,QLWLDWLYHV*RLQJ)RUZDUG

  .21'27(&5(3257  

:($5(.21'27(&7RS0HVVDJH&RPSDQ\2YHUYLHZ+LVWRU\6WUHQJWKV%XVLQHVV)ORZ'LDJUDP%XVLQHVV0RGHO%XVLQHVV5HSRUW([LVWLQJEXVLQHVVHV7KUHH
EXVLQHVVVHJPHQWV ,QGXVWULDO 6WUXFWXUDO6WHHO0DWHULDOV0DWHULDOV(OHFWULFDO(TXLSPHQW‫(ٹ‬OHFWULFDOHTXLSPHQW
7KLVEXVLQHVVLVKDQGOHGE\DFRQVROLGDWHGVXEVLGLDU\6DQZD'HQ]DL&R/WG:HSURFXUH
DQG VHOO HOHFWULFDO HTXLSPHQW WR HOHFWULFDO ZRUN RSHUDWRUV HQJDJHG LQ FRQVWUXFWLRQ RI
KRXVHVEXLOGLQJVIDFLOLWLHVIDFWRULHVDQGRWKHUVWUXFWXUHVDQGWRHOHFWULFDODSSOLDQFHVWRUHV6XSSOLHUV+RXVHKROGDSSOLDQFHPDQXIDFWXUHUV.21'27(&(OHFWULFDO(TXLSPHQW&XVWRPHUV(OHFWULFDODSSOLDQFHVWRUHV(QGXVHUV HOHFWULFDOZRUNRSHUDWRUV 

1XPEHURIRSHUDWLQJVLWHV

6XEVLGLDU\ 6DQZD'HQ]DL&R/WG
RSHUDWLQJVLWHV


1XPEHURIFXVWRPHUV$SSUR[LPDWHO\FRPSDQLHV

1XPEHURIQHZFXVWRPHUV FXVWRPHUV

1HWVDOHVRIQHZFXVWRPHUV PLOOLRQ\HQ
&KDUDFWHULVWLFV
嵣3URGXFWVKDQGOHGDUHPDLQO\HOHFWULFDOHTXLSPHQW嵣6HFXULQJVWDEOHVDOHVYROXPHV嵣'RPLQDQWVWRUHRSHQLQJVPDLQO\LQ$LFKLDQG*LIX3UHIHFWXUHV

7KHQXPEHURIQHZFXVWRPHUVDQGRIQHWVDOHVUHSUHVHQWWKHQXPEHUDQGQHWVDOHVRIFXVWRPHUVH[SORLWHGWKLV ILVFDO\HDUDQGLQWKHSUHYLRXVILVFDO\HDUDQGIRUZKLFKDFWXDOVDOHVZHUHPDGHWKLVILVFDO\HDU
  .21'27(&5(3257
















SODQ 

1HWVDOHV









2SHUDWLQJLQFRPH











2YHUYLHZRIWKH<HDU(QGHG0DUFK
'HPDQG IRU RXU PHUFKDQGLVH ZDV VWURQJ LQ
FRQQHFWLRQZLWKUHQRYDWLRQVDQGQHZ FRQVWUXFWLRQRI FRPPHUFLDO IDFLOLWLHV DQG FRQGRPLQLXPV ,Q
DGGLWLRQWKDQNVWRWKHIDYRUDEOHGHPDQGIRU/('OLJKWLQJ UHSODFHPHQW LQ IDFWRULHV DQG FRPPHUFLDOIDFLOLWLHVVDOHVURVH\HDURQ\HDULQWKHODWWHUKDOI
RI WKH ILVFDO \HDU $V D UHVXOW QHW VDOHV ZHUH
PLOOLRQ\HQGRZQ\HDURQ \HDU
,QWHUPVRISURILWRSHUDWLQJLQFRPHFDPH WRPLOOLRQ\HQGRZQIURPD\HDUHDUOLHU7KLVZDVDWWULEXWDEOH LQ SDUW WRFRQWLQXLQJ FRPSHWLWLRQZLWK RWKHU FRPSDQLHV LQ WKH VDPH EXVLQHVV RYHUDFTXLULQJ RUGHUV FDXVLQJ WKH JURVV SURILW UDWLR WR
GHFOLQH  SHUFHQWDJH SRLQWV ,Q DGGLWLRQ WKHUH
ZDV D ULVH LQ SHUVRQQHO H[SHQVHV XQGHU VHOOLQJ
JHQHUDODQGDGPLQLVWUDWLYHH[SHQVHVDVDUHVXOWRIHQKDQFLQJ RXU PDQSRZHU WR UHLQIRUFLQJ EXVLQHVVDFWLYLWLHV UHODWLQJ WR GLUHFW GLVWULEXWLRQ FRQWUROGHYLFHVDQGKRXVLQJIDFLOLWLHV,QLWLDWLYHV*RLQJ)RUZDUG
*LYHQWKHSURMHFWLRQWKDWKRXVLQJFRQVWUXFWLRQZLOOGHFOLQHLQWKHORQJWHUPGXHWRDGHFUHDVLQJELUWKUDWH DQG SRSXODWLRQ ZH ZLOO PDNH HIIRUWV WR
H[SDQG WKH UDQJH RI PHUFKDQGLVH  KDQGOHGLQFOXGLQJPHUFKDQGLVHIRUKRXVLQJUHODWHGIDFLOLWLHVDQGV\VWHPVDQGEURDGHQWKHDUHDIRUFRQGXFWLQJVDOHV DFWLYLWLHV LQ RUGHU WR HQVXUH WR EULQJ LQ
RUGHUVDQGLQFUHDVHQHWVDOHV
7RDFKLHYHLQFUHPHQWDOJURZWKJRLQJIRUZDUGZH
ZLOO HQKDQFH RXU PDQSRZHU DQG IXUWKHUVWUHQJWKHQ RXUFRQVWUXFWLRQ RSHUDWLRQ ZKLFK ZDVUHRUJDQL]HG LQ WKH ILVFDO \HDU HQGHG 0DUFK  DQG H[SDQG RUGHUV E\ GLUHFWO\ VHOOLQJ WRKRXVLQJ PDQXIDFWXUHUV DQG HQG XVHUV DV ZHOO DV
ZRUNWRLQFUHDVHPHUFKDQGLVHKDQGOHGDQGZLGHQDUHDVRIGLVWULEXWLRQ%\ WDNLQJ WKHVHLQLWLDWLYHVZH ZLOODLP WRDFKLHYH
RXU WDUJHWV IRU WKH ILVFDO \HDU HQGLQJ 0DUFK  ZKLFK DUH QHW VDOHV RI  PLOOLRQ \HQ
DQGDQRSHUDWLQJLQFRPHRIPLOOLRQ\HQ  .21'27(&5(3257  .21'27(& 9,6,21



),1$1&,$/'$7$



16.1䠂



(19,5210(17

1HWVDOHV
2SHUDWLQJSURILWUDWLR
2SHUDWLQJLQFRPHUDWLR

62&,$/

*29(51$1&(&KDQJHVLQ1HW6DOHV PLOOLRQ\HQ 

6833/(0(17

3HUFHQWDJHRI7RWDO6DOHVSHUEXVLQHVVVHJPHQWPLOOLRQ\HQ :($5(.21'27(& 

5HODWHGOLQNV
7R.21'27(&ZHEVLWH :($5(.21'27(&7RS0HVVDJH&RPSDQ\2YHUYLHZ+LVWRU\6WUHQJWKV%XVLQHVV)ORZ'LDJUDP%XVLQHVV0RGHO%XVLQHVV5HSRUW‫)ٹ‬XQFWLRQVDVDPDQXIDFWXUHU 5ROHVRIIDFWRULHV :LWK D YLHZ WR SURPRWLQJ D ORFDO FRPPXQLW\RULHQWHG VDOHV VWUXFWXUH WKH &RPSDQ\ DV D ZKROHVDOHFRPSDQ\ ZLWK D PDQXIDFWXULQJ GLYLVLRQ PDLQWDLQV IRXU IDFWRULHV LQ -DSDQ DQG PDNHV DQ HIIRUW WR SD\
FDUHIXODWWHQWLRQWRFXVWRPHUIHHGEDFNLQGLVWULEXWLQJSURGXFWV
7KHPDMRULW\RIWKH&RPSDQ\bVSURGXFWVDUHPDGHWRRUGHUSURGXFWVWKDWUHTXLUHKLJKOHYHOSUHFLVLRQDQG VKRUWWHUP GHOLYHU\ 7KLV SUHYHQWV HQFURDFKPHQW IURP RYHUVHDV DQG OHDGV WR DFKLHYLQJ D KLJKSURILWDELOLW\

3HUFHQWDJHRIIDFWRU\SURGXFWVWRQHWVDOHV
RI.21'27(&3HUFHQWDJHRIPDGHWRRUGHUSURGXFWVWRIDFWRU\SURGXFWV 

 

٫

٫

‫ٹ‬/RFDOFRPPXQLW\RULHQWHGVWUXFWXUH
7KH &RPSDQ\ PDLQWDLQV IRXU IDFWRULHV LQ +RNNDLGR ,EDUDNL 6KLJD DQG)XNXRND$OOIDFWRULHVPDQXIDFWXUHWXUQEXFNOH EUDFHVDQGDQFKRUEROWVZKLFK DUH RXU FRUH SURGXFWV %\ KDYLQJ WKHVH IRXU IDFWRULHV VXSSO\SURGXFWVWRRXUVDOHVQHWZRUNDFURVVWKHFRXQWU\ZH DUHDEOHWRUHDOL]HUDSLGGHOLYHU\ DQGRSHUDWHDORFDOFRPPXQLW\RULHQWHGVDOHVVWUXFWXUH
6HWWLQJ RXU ILUVW SULRULW\ RQ UHVSRQGLQJ WR FXVWRPHU QHHGV ZLWK VSHHG
ZH KDYH D SURGXFWLRQ VWUXFWXUH LQ SODFH WKDW PDNHV WKH EHVW RI RXUFRPSUHKHQVLYHO\FDSDELOLW\WKDWLQWHJUDWHVSURGXFWLRQDQGVDOHV6DSSRUR)DFWRU\+RNNDLGR 

6KLJD)DFWRU\6KLJD
3UHIHFWXUH .\XVKX)DFWRU\)XNXRND
3UHIHFWXUH .DQWR)DFWRU\,EDUDNL
3UHIHFWXUH 

4:K\GRDOOIDFWRULHVPDQXIDFWXUHWKHVDPHSURGXFWV"$ 7XUQ EXFNOH EUDFHV DQG DQFKRU EROWV ZKLFK DUH RXU FRUH SURGXFWV DUH KHDY\ DQG
LQFXUKLJKWUDQVSRUWFRVWV7KHUHIRUHZHHVWDEOLVKHGIRXUIDFWRULHVLQGLVWDQWORFDWLRQVDFURVVWKHFRXQWU\WRKDYHHDFKIDFWRU\VXSSO\SURGXFWVWRWKHVDOHVORFDWLRQVLQWKHLU
UHVSHFWLYH UHJLRQV LQ RUGHU WR UHGXFH WKH FRVWV DQG ULVNV DVVRFLDWHG ZLWKWUDQVSRUWDWLRQ  .21'27(&5(3257

5HODWHGOLQNV
7R.21'27(&ZHEVLWH 

7UDQVLWLRQRI3URGXFW3URILW5DWLR PLOOLRQ\HQ 

1HWVDOHVRISURGXFWV:($5(.21'27(& +20(&RPSDQ\)DFWRU\

























SODQ 

3URGXFWSURILWUDWLR















1HWVDOHVRISURGXFWV















‫ٹ‬7RZDUGVDXWRPDWLRQRISURGXFWLRQIDFLOLWLHV
,Q$XJXVWZHPDGH&+82+*,.(1&R/WG
D FRQVROLGDWHG VXEVLGLDU\ 7KH FRPSDQ\ HQJDJHVLQ GHVLJQ DQG PDQXIDFWXULQJ RI YDULRXV W\SHV RIPDFKLQHU\ DQG HTXLSPHQW DQG ZH KDYH KDGEXVLQHVVUHODWLRQVKLSVZLWKWKHP
&+82+ *,.(1 &R /WG LV NQRZQ IRU KDYLQJDFKLHYHG WKH DXWRPDWLRQ RI SURGXFWLRQ IDFLOLWLHV DW

-DSDQbVWRSFODVVHOHFWULFDSSOLDQFHVPDQXIDFWXUHUV
DQG DXWRPRWLYH SDUWV PDQXIDFWXUHUV .21'27(&KDV FRQYHQWLRQDOO\ EHHQ HQJDJHG LQ WKHDXWRPDWLRQ RI SURGXFWLRQ IDFLOLWLHV DQG ZLOO IXUWKHUZRUN WR LQFUHDVH SURGXFWLRQ HIILFLHQF\ RI LWVSURGXFWV E\ OHYHUDJLQJ WKH NQRZKRZ RI WKHVXEVLGLDU\),1$1&,$/'$7$

(19,5210(17

62&,$/

.21'27(& 9,6,21

3URGXFWSURILWUDWLR/RFDWLRQ,NHGHUD.RUDFKR,QXNDPLJXQ6KLJD(VWDEOLVKHG

 0DUFK

3DLGLQFDSLWDO6KDUHKROGHUVPLOOLRQ\HQE\.21'27(&*29(51$1&(&RPSDQ\3URILOHRI&+82+*,.(1&R/WG

'HVLJQDQGPDQXIDFWXUHRIYDULRXVW\SHVRIPDFKLQHVDQG
HTXLSPHQWLQFOXGLQJODERUVDYLQJHTXLSPHQWDQGWUDQVSRUWGHYLFHVLQDGGLWLRQWRLQGXVWULDOPDFKLQHVDQGHOHFWURQLF
SDUWVIRUDXWRPRELOHVDQGKRXVHKROGDSSOLDQFHV  .21'27(&5(3257  

6833/(0(17%XVLQHVVDUHDV.21'27(& 9,6,21

KONDOTECVISION0HGLXPWHUP0DQDJHPHQW3ODQ*URZWK6WUDWHJ\2SSRUWXQLWLHVDQG5LVNV*URZWKVWUDWHJ\RI.21'27(&  .21'27(&5(3257

5HODWHGOLQNV
7R.21'27(&ZHEVLWH :($5(.21'27(& 

0HGLXPWHUP0DQDJHPHQW3ODQ0HGLXPWHUP0DQDJHPHQW3ODQ‫ٹ‬0DUNHWWUHQGV
3XEOLFLQYHVWPHQWV•••3ULYDWHFDSLWDO
LQYHVWPHQW

•••9DULRXV SURMHFWV••*URZLQJ QHHG IRU SUHYHQWLQJUHGXFLQJ GDPDJH DQG LQFUHDVLQJ HDUWKTXDNHUHVLVWDQFHDJDLQVWQDWXUDOGLVDVWHUV([SDQGLQJ WKH PDLQWHQDQFH DQG UHQRYDWLRQ PDUNHW IRU PDLQWHQDQFHXSJUDGHV
DVVRFLDWHGZLWKWKHDJLQJRISXEOLFLQIUDVWUXFWXUH,QLWLDWLYHV LQ UHVSRQVH WR D ODERU VKRUWDJH DQG ZRUN VW\OH UHIRUPV DUH XUJHQW
LVVXHV5HFRYHU\RIVHQWLPHQWRIFDSLWDOLQYHVWPHQWLQWKHSULYDWHVHFWRUGXHWRLPSURYHG
FRUSRUDWHHDUQLQJV0DLQWHQDQFHUHSDLUDQGVWUHQJWKHQLQJHDUWKTXDNHUHVLVWDQFHRISULYDWHIDFLOLWLHV
([SDQVLRQRILQERXQGGHPDQG
(VWDEOLVKPHQW RI DLUSRUWV SRUWV DQG RWKHU LQIUDVWUXFWXUH LQ WKH 7RN\R
PHWURSROLWDQ DUHD LQ DGGLWLRQ WR FRQVWUXFWLRQ ZRUN UHODWHG WR WKH 7RN\R 2O\PSLF
DQG3DUDO\PSLFJDPHV/LQHDU&KXR6KLQNDQVHQ+RNNDLGR+RNXULNX.\XVKX 1DJDVDNL 6KLQNDQVHQOLQHV

(19,5210(17

3ODQEDVHGRQWKHFXUUHQWVDOHVVWUXFWXUH

),1$1&,$/'$7$

.21'27(& 9,6,21

QW.21'27(&GLVFORVHVLWV0HGLXPWHUP0DQDJHPHQW 7KH0HGLXPWHUP0DQDJHPHQW3ODQDGRSWVWKHUROOLQJPHWKRGZKLFKUHVSRQGVWRFKDQJHVLQWKH
PDQDJHPHQWHQYLURQPHQWZKLOHYHULI\LQJWKHRXWFRPHDQGLVVXHVHYHU\\HDULQDQHIIRUWWRUHDOL]HWKHPLGWRORQJYLVLRQ

62&,$/‫)ٹ‬LQDQFLDO7DUJHW
1HWVDOHVWDUJHWV PLOOLRQ\HQ 


 SODQ  SODQ  SODQ 

1HWVDOHV







2SHUDWLQJLQFRPH









2UGLQDU\LQFRPH









3URILWDWWULEXWDEOHWR
RZQHUVRISDUHQW





  .21'27(&5(3257  

6833/(0(17

0DU $FWXDO *29(51$1&(

.21'27(& 9,6,21
0HGLXPWHUP0DQDJHPHQW3ODQ*URZWK6WUDWHJ\2SSRUWXQLWLHVDQG5LVNV*URZWK6WUDWHJ\%DVLFVWUXFWXUHRIJURZWKVWUDWHJLHV+ROGLQJH[SDQGHGPDQDJHPHQWPHHWLQJV([LVWLQJEXVLQHVVVWUDWHJLHV2UJDQLFJURZWK 

5HVSRQVHWRQDWXUDOGLVDVWHUV5HLQIRUFHPHQWRIWHFKQLFDO
FDSDELOLWLHV&RRSHUDWLRQRQWHFKQLFDO
FDSDELOLWLHV

1HZ
0HUFKDQGLVH
&RPPLWWHH

)RXU
JURZWKVWUDWHJLHV([SDQVLRQRIRSHUDWLQJVLWHV1HZ
VWUXFWXUHRI
6DQZD
'HQ]DL&R
/WG

,QFUHDVLQJ
SUHVHQFH
LQIRUHLJQPDUNHWV0 $
VWUDWHJ\,QLWLDWLYHVIRUHQKDQFLQJDFWLYLWLHVLQQRQH[LVWLQJ
EXVLQHVV
1RQFRUHJURZWK ,QFUHDVLQJFRUSRUDWHYDOXH&DSLWDO
3ROLF\

5HDOL]DWLRQRI0HGLXPWHUP



0DQDJHPHQW3ODQ
7DUJHWLQJQHWVDOHVRIELOOLRQ\HQ
 1HWVDOHV PLOOLRQ\HQ 







$FWXDO
  .21'27(&5(3257







0HGLXPWHUP0DQDJHPHQW3ODQ     /RQJWHUP9LVLRQDQGEH\RQG

5HODWHGOLQNV
7R.21'27(&ZHEVLWH ‫)ٹ‬RXUJURZWKVWUDWHJLHV  .21'27(&LVVWUHQJWKHQLQJWKHIROORZLQJIRXULQLWLDWLYHVWRZDUGH[SDQGLQJRUGHUV .21'27(& DFKLHYHV D PRQWKO\ DYHUDJH RI RQH QHZ FXVWRPHUSHUVDOHVUHSUHVHQWDWLYHDQGD\HDUO\DYHUDJH
 RIQHZFXVWRPHUVDVDFRPSDQ\   ,Q DGGLWLRQ ZH H[SORLW D \HDUO\ DYHUDJH RI  GRUPDQW FXVWRPHUV SHU VDOHV UHSUHVHQWDWLYH DQG WKHVH DFWLYLWLHV IRUPWKHVRXUFHIRUVDOHVFXVWRPHUV 2IIHURIQHZPHUFKDQGLVH




&XOWLYDWLQJ೬༒৫ิGRUPDQWFXVWRPHUV









)RU WKH SXUSRVH RI GHYHORSLQJ QHZ PHUFKDQGLVH MRLQW
1HZ 0HUFKDQGLVH &RPPLWWHH PHHWLQJV DUH KHOG
EHWZHHQ WKH VDOHV GLYLVLRQ DQG WKH PDQXIDFWXULQJGLYLVLRQSHULRGLFDOO\WRGLVFXVVUHTXHVWVIURPFXVWRPHUV
DQG SURSRVDOV IRU LPSURYHPHQW :H ZLOO FRQWLQXH WR
GHYHORS DQG FXOWLYDWH PHUFKDQGLVH ZLWK HYHQ KLJKHUDGGHGYDOXHLQRUGHUWRRIIHUVXFKPHUFKDQGLVH

),1$1&,$/'$7$










1HZ
ৗૠ൹௢
FXVWRPHUV

.21'27(& 9,6,21

1HWVDOHV PLOOLRQ\HQ  &XOWLYDWLRQRIQHZFXVWRPHUV:($5(.21'27(& ([LVWLQJEXVLQHVVVWUDWHJLHV RUJDQLFJURZWKVWUDWHJLHV )RUPRUHVHHSDJH:H DUH ZRUNLQJ WR H[SDQG RXU EXVLQHVV LQWR QHZVHFWRUV VXFK DV +RPH LPSURYHPHQW FHQWHUV DQGUDLOURDG FRPSDQLHV LQ DGGLWLRQ WR WKH H[LVWLQJGLVWULEXWLRQURXWHV
:H DOVR HVWDEOLVKHG WKH n(FRPPHUFH *URXS| LQ -XO\WRH[SORUHVDOHVWKURXJKWKH,QWHUQHW)XUWKHUZHKDYHLQSODFHDVDOHVIRUFHGHGLFDWHGWRWKH
7RN\R PHWURSROLWDQ DUHD WR DFFRPPRGDWH EXONSXUFKDVLQJ IURP ODUJH WUDGLQJ FRPSDQLHV DQGKHDGTXDUWHUV RI JHQHUDO FRQVWUXFWLRQ FRPSDQLHV IURPZKLFKRUGHUVKDYHEHHQLQFUHDVLQJLQUHFHQW\HDUV

1HWVDOHV PLOOLRQ\HQ +RPHӒҴӕӂӡӄҴ
LPSURYHPHQW
FHQWHUV






7RN\R
PHWURSROLWDQ
੣੃෠
DUHD


5DLOURDGV
ள੊














*29(51$1&( &XOWLYDWLRQRIGLVWULEXWLRQURXWHV

62&,$/HTXLSPHQW DGYLVHU DV DQ LQWHUQDOO\DXWKRUL]HGTXDOLILFDWLRQWRKHLJKWHQWKH
H[SHUWLVH RQ OLIWLQJ HTXLSPHQW DQGSURPRWHGLVWLQJXLVKHGVHUYLFHV)XUWKHUPRUH ZH DOVR LVVXH SURGXFWFDWDORJVVSHFLILFWRFHUWDLQVHFWRUVDQG
FXVWRPHUV VXFK DV WKRVH RQ OLIWLQJHTXLSPHQW PDFKLQHU\  HTXLSPHQW
IRU KDUERUV PDWHULDOV WR SUHYHQWGDPDJH IURP ZLOGOLIH DQG DJULFXOWXUDOHTXLSPHQW LQ DGGLWLRQ WR WKH JHQHUDOSURGXFWFDWDORJ






  .21'27(&5(3257  

6833/(0(17.21'27(&QRWRQO\VHOOVPHUFKDQGLVH
EXW DOVR PDLQWDLQV D VWUXFWXUH WR
HQDEOH WKH XQGHUWDNLQJ RI DQFKRUFRQVWUXFWLRQ E\ KDYLQJ FRQVWUXFWLRQPDQDJLQJ HQJLQHHUV DQG DFTXLULQJ D
FRQVWUXFWLRQ EXVLQHVV OLFHQVH %\
EHFRPLQJ LQYROYHG LQ WKH LQLWLDO SKDVH
RI D FRQVWUXFWLRQ SURMHFW ZH DUH DEOH
WR DFTXLUH LQIRUPDWLRQ RQ QHFHVVDU\FRQVWUXFWLRQ PDWHULDOV DKHDG RI RWKHUV
DQG PDNH XVH RI VXFK LQIRUPDWLRQ RQ
VDOHVDFWLYLWLHV
:HDOVRKDYHLQSODFHDOLIWLQJ

(19,5210(17 $GRSWLRQRIIOH[LEOHVDOHVPHWKRGV













.21'27(& 9,6,21
0HGLXPWHUP0DQDJHPHQW3ODQ*URZWK6WUDWHJ\2SSRUWXQLWLHVDQG5LVNV([LVWLQJEXVLQHVVVWUDWHJLHV RUJDQLFJURZWKVWUDWHJLHV ‫ٹ‬5HVSRQVHWRQDWXUDOGLVDVWHUV2XUSURGXFWVDQGPHUFKDQGLVHVXSSRUWUHFRYHU\UHVWRUDWLRQHIIRUWVIURPGLVDVWHUVDQGDUHLQGHPDQGLQ
WKHHYHQWRIDEQRUPDOZHDWKHUFRQGLWLRQVVXFKDVH[WUHPHO\KHDY\UDLQIDOOHYHU\ZKHUH
:H PDLQWDLQ D VWUXFWXUH DFURVV WKH FRXQWU\ WKDW HQDEOHV XV WR LPPHGLDWHO\ UHVSRQG WR VXFK XUJHQW
GHPDQGIRUSURGXFWVDQGPHUFKDQGLVHDQGFDUU\RXWRXUUHVSRQVLELOLW\WRVXSSO\

HJ.21'27(&bV.\XVKX.\XVKX)DFWRU\

DUHDVDOHVVLWHZKLFKFDQ

.LWDN\XVKX2IILFHUHVSRQGLQWKHHYHQWRID
.XPDPRWRHDUWKTXDNH)XNXRND%UDQFK.\XVKX2IILFH

1DJDVDNL2IILFH

.XPDPRWR2IILFH

5HVSRQVHE\.XPDPRWR2IILFH.DJRVKLPD2IILFH

‫[(ٹ‬SDQVLRQRIRSHUDWLQJVLWHV
:HRSHQHGWKH0RULRNDRIILFHLQ-XO\WKH1DJDQRRIILFHLQ-DQXDU\DQGWKH.XPDPRWRRIILFH
LQ$SULO
:HZLOOFRQWLQXH WR PDLQWDLQ D ORFDOFRPPXQLW\RULHQWHG VDOHV VWUXFWXUHLQ RUGHU WRUHVSRQG TXLFNO\ WRFXVWRPHUQHHGVDQGH[HFXWHTXLFNGHOLYHULHVLQDQHIIRUWWRUHDOL]HFXVWRPHUIRFXVHGPDQDJHPHQW,Q0DUFKWKH6KL]XRNDRIILFHDQGWKH7RNDLRIILFHZHUHUHORFDWHGDVSDUWRIRXU%&3LQLWLDWLYHDQG
WRRIIHULQFUHDVHGFRQYHQLHQFHIRUFXVWRPHUVE\HQKDQFLQJRXURSHUDWLRQV 0RULRND2IILFH

  .21'27(&5(3257

 1DJDQR2IILFH

 .XPDPRWR2IILFH

$LU
FRQGLWLRQLQJHTXLSPHQW

6RODUSRZHUUHODWHG+RXVLQJUHODWHGHTXLSPHQW
+\JLHQHZHWDUHDUHODWHG /LJKWLQJHTXLSPHQW3RZHU
OLQHVSDQHOERDUGV

6\VWHPVHTXLSPHQWPDWHULDOVHJ)$HTXLSPHQW (FRLWHPV&RQWUROSDQHO+DQGOLQJRISURSHUW\RUGHUV 5HLQIRUFHPHQWRI   ([SDQVLRQRI   GLUHFWGHPDQG EXVLQHVV    PHUFKDQGLVHKDQGOHG ([SDQVLRQRI   RSHUDWLQJVLWH

$Q HOHFWULF IDFLOLW\ RSHUDWLQJ
VLWH ZDV HVWDEOLVKHG WR FDUU\RXWZKROHVDOLQJRIPHUFKDQGLVH DV ZHOO DV WR
RUJDQL]H FRQVWUXFWLRQ ZRUN(IIRUWV DUH PDGH WR SURPRWH
WKH GLUHFWGHPDQG EXVLQHVVIXQFWLRQ WR KRXVLQJ PDNHUV
DQG HQG XVHUV LQ DQ HIIRUW WR
H[SDQGRUGHUV:H RSHQHG $LKRNX 2IILFH WR
FRYHU WKH QRUWKHUQ UHJLRQ RI
$LFKL 3UHIHFWXUH DQG WKH 7RQR
UHJLRQ RI *LIX 3UHIHFWXUHZKHUH PRUH DGHTXDWH VDOHV 
PDUNHWLQJ DFWLYLWLHV ZHUH
QHHGHG ,Q WKH VRXWKHUQUHJLRQ RI $LFKL 3UHIHFWXUH
H[LVWLQJ VLWHV ZLOO FRQWLQXH WR
GHHSHQDFWLYLWLHV0HUFKDQGLVH OLQHXSV KDYH
EHHQ H[SDQGHG WR LQFOXGHKRXVLQJ UHODWHG HTXLSPHQW
DQG V\VWHP PDWHULDOV LQ
DGGLWLRQ WR FRQYHQWLRQDOO\KDQGOHGPHUFKDQGLVH HJDLUFRQGLWLRQLQJ HTXLSPHQW VRODUSRZHUUHODWHGPDWHULDOVOLJKWLQJ HTXLSPHQW SRZHU
OLQHV DQG SDQHO ERDUGV DQG
HFR LWHPV  $QG ZH DOVRKDQGOH SURSHUW\ RUGHUV DERXWFRQWUROSDQHO

62&,$/

5HLQIRUFHPHQWRIWHFKQLFDOFDSDELOLWLHV

.21'27(& 9,6,21

1HZ

),1$1&,$/'$7$

WKH DLP RI DFKLHYLQJ FHUWDLQ JURZWKLQ  DQG EH\RQG DQG WR DFWLYHO\UHLQIRUFHLWVPDQDJHPHQWSODWIRUP






&RQYHQWLRQDO

0HUFKDQGLVHKDQGOHG

.21'27(&bV FRQVROLGDWHG VXEVLGLDU\6DQZD 'HQ]DL &R /WG EHJDQRSHUDWLQJ XQGHU D QHZ VWUXFWXUHHIIHFWLYH $SULO  DV IROORZV ZLWK

(19,5210(17‫ٹ‬1HZVWUXFWXUHDW6DQZD'HQ]DL&R/WG

:($5(.21'27(& 

5HODWHGOLQNV
7R.21'27(&ZHEVLWH ‫&ٹ‬RRSHUDWLRQRQWHFKQLFDOFDSDELOLWLHV(IIHFWLYH 2FWREHU   .21'27(& WRRN RYHU WKH n$/36PDUN LURQ SXOOH\| PDQXIDFWXULQJ EXVLQHVVIURP$NLQDJD)DFWRU\&R/WG7KURXJKVXFFHHGLQJWKHn$/36PDUNLURQSXOOH\|PDQXIDFWXULQJEXVLQHVVZHPDNHXVHRI$NLQDJD)DFWRU\&R/WGbVPDQXIDFWXULQJWHFKQRORJLHVZKLFKFRQWULEXWHWRRXUHIIRUWVWRIXUWKHUHQKDQFHRXUSURGXFWVDQGVHUYLFHV

*29(51$1&(:HGRQRWPDQXIDFWXUHFHUWDLQ$/36PDUNLURQSXOOH\V 

n$/36PDUNLURQSXOOH\|PDQXIDFWXULQJEXVLQHVV

6833/(0(17

6 X F F H H G H G  E X V L Q H V V  .21'27(&5(3257  

.21'27(& 9,6,21
0HGLXPWHUP0DQDJHPHQW3ODQ*URZWK6WUDWHJ\2SSRUWXQLWLHVDQG5LVNV,QLWLDWLYHVIRUHQKDQFLQJDFWLYLWLHVLQQRQH[LVWLQJEXVLQHVV 1RQFRUHJURZWKVWUDWHJLHV ‫ٹ‬0 $VWUDWHJ\:H YLHZ WKDW SXUVXLQJ FRUSRUDWH DFTXLVLWLRQV DQG FDSLWDOEXVLQHVV WLHXSV LV DQ LPSRUWDQW VWUDWHJ\ WR
VWUHQJWKHQ RXU EXVLQHVV SODWIRUP :H DFWLYHO\ UHYLHZ SRWHQWLDO DFTXLVLWLRQ DQG WLHXS RSSRUWXQLWLHV E\
DQDO\]LQJ DQG GLVFXVVLQJ WKH JURZWK SRWHQWLDO RI WKH UHOHYDQW EXVLQHVV ZKLOH WDNLQJ FDSLWDO FRVW LQWR
FRQVLGHUDWLRQ:KROHVDOHEXVLQHVVLQWKH
FRQVWUXFWLRQLQGXVWU\1HLJKERULQJLQGXVWU\ 
 3XUVXH 0 $ ZLWK FRPSDQLHV DVVRFLDWHG
ZLWK LQGXVWULHV RWKHU WKDQ WKH FRQVWUXFWLRQ LQGXVWU\ DQG SURPRWH
 EXVLQHVVH[SDQVLRQ $FWXDOFDVH6DQZD'HQ]DL&R/WG

:KROHVDOHRIFRQVWUXFWLRQPDWHULDOV

'HHSHQLQJWKHEXVLQHVV 
 3XUVXH 0 $ZLWK PDWHULDOPDQXIDFWXUHUV
HWF
  $FWXDOFDVH&+82+*,.(1&R/WG([SDQVLRQRIEXVLQHVVDUHD 3XUVXH0 $ZLWKFRPSDQLHVWKDWPDLQWDLQRYHUVHDV VLWHV WR FDSWXUH FXVWRPHUV RYHUVHDV

3ODVWLF
FRQVWUXFWLRQPDWHULDOV:KROHVDOHRIHOHFWULF
HTXLSPHQW

6DQZD'HQ]DL&R/WG:RRGHQFRQVWUXFWLRQPDWHULDOV
0HWDO
FRQVWUXFWLRQPDWHULDOV2WKHU
FRQVWUXFWLRQPDWHULDOV&DWHJRUL]DWLRQRIPHUFKDQGLVH
H[DPSOH :KROHVDOLQJRISLSHVDQGSOXPELQJPDWHULDOV(QHUJ\VDYLQJHTXLSPHQW

6HFXULW\GHYLFHV$LUFRQGLWLRQLQJHTXLSPHQW+RWZDWHUVXSSO\HTXLSPHQW/LJKWLQJDQGKRWZDWHUVXSSO\HTXLSPHQW

:HWDUHDHTXLSPHQW







)RXUSHUVSHFWLYHVLQSXUVXLQJ0 $

$PSOLI\LQJVDOHVSDWWHUQVGLIIHUHQW VDOHV SDWWHUQV IURP WKRVH RI
.21'27(& VXFK DV UHWDLO FDWDORJEDVHGVHOOLQJDQGRQOLQHVDOHV

6KLSEXLOGLQJ7UDQVSRUW/DQGDQGVHDFDUJRKDQGOLQJ)LVKHULHVFXOWLYDWLRQ$JULFXOWXUHRWKHU







  3XUVXH0 $ZLWKFRPSDQLHVWKDWRSHUDWHV)LHOGVRWKHUWKDQFRQVWUXFWLRQ

&+82+*,.(1&R/WG

0DQXIDFWXULQJ 
SURGXFWLRQIDFLOLWLHV

.21'27(&,1&'HHSHQLQJRIEXVLQHVV1HLJKERULQJLQGXVWU\

6KLSEXLOGLQJWUDQVSRUWODQGDQGVHDFDUJRKDQGOLQJPDQXIDFWXULQJ 
SURGXFWLRQIDFLOLWLHVILVKHULHVFXOWLYDWLRQDJULFXOWXUHHWF

5HLQIRUFHPHQWRIPDWHULDOVWKDWVXSSRUWEXLOGLQJVDQG
VWUXFWXUHV



0 $

VWUDWHJ\([SDQVLRQRIEXVLQHVVDUHD)XOOVFDOH
GHSOR\PHQWLQ
$6($1FRXQWULHV
HJ7KDLODQG
,QGRQHVLD   .21'27(&5(3257

$PSOLI\LQJVDOHVSDWWHUQV([SDQVLRQRIGLVWULEXWLRQFKDQQHOV(QWU\LQWRWKHRQOLQHEXVLQHVVPRYLQJ DKHDG ZLWK DFWLYLWLHV WR H[SDQG RXUEXVLQHVV LQ $6($1 FRXQWULHV ZLWK 7KDLODQG DV RXUEDVH ORFDWLRQ *RLQJ IRUZDUG ZH ZLOO IXUWKHUVWUHQJWKHQ RXU VDOHV  PDUNHWLQJ FDSDELOLWLHV E\ZLGHQLQJ RXU VDOHV QHWZRUN DQG UHLQIRUFLQJPDQSRZHUZLWKDYLHZWRLQFUHDVLQJWKHUDWLRRIQHWVDOHVIURPRXURYHUVHDVEXVLQHVV
.21'27(&,1&DQGRYHUVHDVH[SDQVLRQ:KLOH WKH SODQQHG ILJXUH IRU QHW VDOHV IURPRYHUVHDV EXVLQHVV LQ WKH \HDU HQGLQJ 0DUFK  LV  PLOOLRQ \HQ WRWDO IRU ,QWHUQDWLRQDO
6DOHV 'LYLVLRQ DQG VXEVLGLDU\ LQ 7KDLODQG  RXUH[SRUW EXVLQHVV ZDV DFWLYH SULRU WR WKH 3OD]D$FFRUG LQ  DQG KDQGOHG H[SRUWV ZRUWKDSSUR[LPDWHO\  PLOOLRQ \HQ +RZHYHU JLYHQ
WKH FXUUHQF\FULVLV LQ ZKHQ $VLDQ FXUUHQFLHVVOXPSHG WKH H[SRUW EXVLQHVV EHFDPH GLIILFXOW DQGZH VKLIWHG IURP H[SRUW WR LPSRUW 6XEVHTXHQWO\ZH HVWDEOLVKHG D GR]HQ 2(0 SODQWV LQ &KLQD WR
HVWDEOLVK D VWUXFWXUH WKDW LV QRW DIIHFWHG E\ WKH\HQbV DSSUHFLDWLRQ DQG UHVXPHG H[SRUWV DURXQG


.21'27(& 9,6,21

%DVHG RQ RXU YLHZ WKDW LQFUHDVLQJ SUHVHQFH LQ
IRUHLJQ PDUNHWV ZKHUH JURZWK LV H[SHFWHG ZLOOFRQWULEXWHWRHQKDQFLQJRXUHDUQLQJVFDSDELOLW\ZH
HVWDEOLVKHG D VXEVLGLDU\ LQ 7KDLODQG LQ 1RYHPEHU
 :H H[HFXWHG D FDSLWDO LQFUHDVH LQ $XJXVW DFTXLUHG DOO VKDUHV IURP WKH WZR MRLQW
YHQWXUHFRPSDQLHVDQGVXEVWDQWLDOO\PDGHWKHILUPRXU IXOO\RZQHG VXEVLGLDU\ &XUUHQWO\ ZH DUH),1$1&,$/'$7$

‫ٹ‬,QFUHDVLQJSUHVHQFHLQIRUHLJQPDUNHWV:($5(.21'27(& 

5HODWHGOLQNV
7R.21'27(&ZHEVLWH &RPSDQ\QDPH.21'27(&,17(51$7,21$/ 7+$,/$1' &2/7'

+HDGRIILFHORFDWLRQ%DQJNRN7KDLODQG%XVLQHVVDUHDV,PSRUWH[SRUWDQGORFDOVDOHRILQGXVWULDOPDWHULDOVVWUXFWXUDOVWHHOPDWHULDOVHOHFWULFDOHTXLSPHQWHWFLQ7KDLODQG

3DLGLQFDSLWDO

PLOOLRQEDKWV DSSUR[LPDWHO\PLOOLRQ\HQ 'DWHHVWDEOLVKHG

1RYHPEHU

(19,5210(17

6XEVLGLDU\LQ7KDLODQG

62&,$/

 1HWVDOHVRIRYHUVHDVEXVLQHVV PLOOLRQ\HQ 














SODQ 

/RFDOVXEVLGLDU\LQ7KDLODQG







,QWHUQDWLRQDO
6DOHV'LYLVLRQ







7RWDO







$PRXQWVRILQWHUFRPSDQ\WUDQVDFWLRQVDUHQRWLQFOXGHG
  .21'27(&5(3257  

6833/(0(17*29(51$1&(

.21'27(& 9,6,21
0HGLXPWHUP0DQDJHPHQW3ODQ*URZWK6WUDWHJ\2SSRUWXQLWLHVDQG5LVNV,QFUHDVLQJFRUSRUDWHYDOXH
‫&ٹ‬DSLWDOSROLF\
2XU FDSLWDO SROLF\ VWDQGV RQ WZR NH\ VKDUHKROGHU UHWXUQ WDUJHW LV VHW WR
FRPSRQHQWV FDSLWDO HIILFLHQF\ WDUJHW DQG GHWHUPLQH GLYLGHQGV E\ PHDQV RI '2( DQ
VKDUHKROGHU UHWXUQ WDUJHW :H VHW WKH LQGH[ WKDW WDNHV LQWR DFFRXQW ERWKFDSLWDO HIILFLHQF\ WDUJHW E\ XVLQJ 52( DQ FRQVROLGDWHG RSHUDWLQJ UHVXOWV DQG WKHLQGH[ WKDW UHIOHFWV WKH HIILFLHQF\ RI FDSLWDO GLYLGHQG SD\RXW UDWLR ZLWK WKH DLP RI
LQYHVWPHQW LQ SXUVXLW RI EXVLQHVV GLVWULEXWLQJ GLYLGHQGV WR VKDUHKROGHUV
H[SDQVLRQ LQ DQ HIIRUW WR SURPRWH FUHDWLRQ FRQWLQXRXVO\DQGVWDEO\RI FRUSRUDWH YDOXH 0HDQZKLOH WKH  $FWXDO52(  $FWXDO'2(                    
7DUJHW
















RUPRUH





RUPRUH

7DUJHW













7UDQVLWLRQRIOHIWD[LVVWRFNSULFH <HQ       .21'27(&VWRFNSULFHDIWHUVWRFNVSOLW







1LNNHLDYHUDJHVWRFNSULFH ULJKWD[LV














$SU$SU  .21'27(&5(3257

$SU

$SU

$SU

$SU

5HIHUHQFH\HQ
SODQ 

7UDQVLWLRQLQGLYLGHQGV\HQ㻌
6LQFHWKHLQLWLDOOLVWLQJ1RGHFUHDVHLQGLYLGHQGV\HQ㻌

3ODQWRLQFUHDVHGLYLGHQGVIRUWKHWKFRQVHFXWLYHSHULRG2UGLQDU\GLYLGHQG

\HQ,QFUHDVHLQRUGLQDU\GLYLGHQGV.21'27(& 9,6,21

\HQ㻌

&RPPHPRUDWLYHGLYLGHQG

\HQ㻌
\HQ㻌\HQ㻌

:($5(.21'27(& 

5HODWHGOLQNV
7R.21'27(&ZHEVLWH 

\HQ㻌

)<(0DU

)<(0DU



)<(0DU




(19,5210(17

‫ٹ‬$FTXLVLWLRQRIWUHDVXU\VKDUHV$FTXLVLWLRQSHULRG)HEUXDU\WKURXJK$SULO

1XPEHURIVKDUHVDFTXLUHG

VKDUHV$FTXLVLWLRQSULFH

PLOOLRQ\HQ)URP$XJXVWZHZLOODFTXLUHWUHDVXU\VKDUHVLQFRQMXQFWLRQZLWKWKHLQWURGXFWLRQRIWKH%RDUG%HQHILW7UXVWV\VWHP

‫'ٹ‬LYLGHQG\LHOG

‫ٹ‬6KDUHKROGHULQFHQWLYHSODQ&ORVLQJSULFHRQ0DUFK\HQ

'LYLGHQG\LHOG

'LYLGHQG\LHOGLQFOXGLQJVKDUHKROGHU
LQFHQWLYHV

62&,$/)<(0DU

\HQ㻌


f

1XPEHURIVKDUHVKHOG

6KDUHKROGHU
LQFHQWLYHV

RUPRUHVKDUHVIHZHUWKDQVKDUHVNJULFHFHUWLILFDWH

RUPRUHVKDUHVIHZHUWKDQVKDUHVNJULFHFHUWLILFDWH

RUPRUHVKDUHVNJULFHFHUWLILFDWHHTXLYDOHQWWR\HQ *29(51$1&(\HQ㻌HTXLYDOHQWWR\HQ 

HTXLYDOHQWWR\HQ 

NJULFHFHUWLILFDWHLVZRUWK\HQ   .21'27(&5(3257  

6833/(0(17\HQ㻌),1$1&,$/'$7$

\HQ㻌

.21'27(& 9,6,21
0HGLXPWHUP0DQDJHPHQW3ODQ*URZWK6WUDWHJ\2SSRUWXQLWLHVDQG5LVNV

2SSRUWXQLWLHVDQG5LVNV
‫ٹ‬2WKHUH[WHUQDOHQYLURQPHQW DLQWHQDQFHDQG
*RYHUQPHQWLQYHVWPHQWGHYHORSPHQWRI URPRWLQJUHFRYHU\KLJKVSHHG
 IURPWKH*UHDWELOOLRQ\HQ
7UDQVSRUWDWLRQ(DVW-DSDQ
8S\HDURQ\HDU QHWZRUNV(DUWKTXDNH






1DWLRQDOUHVLOLHQFH

SODQ

3ULYDWHLQYHVWPHQWELOOLRQ\HQ
8S\HDURQ\HDU  QKDQFLQJ 
3URPRWLQJ  HDUWKTXDNH
WKHXVHRI  UHVLVWDQFHRIDWXUDOHQHUJ\ EXLOGLQJV6RXUFHn)<(VWLPDWHRI&RQVWUXFWLRQ,QYHVWPHQW|UHOHDVHGLQ-XQHE\WKH0LQLVWU\RI/DQG,QIUDVWUXFWXUH7UDQVSRUWDQG7RXULVPURPRWLQJUHFRYHU\IURPWKH*UHDW(DVW-DSDQ(DUWKTXDNHDLQWHQDQFHDQG
GHYHORSPHQWRIKLJKVSHHGWUDQVSRUWDWLRQQHWZRUNVKDQFLQJHDUWKTXDNHUHVLVWDQFHRIEXLOGLQJV

3URPRWLQJWKHXVHRIDWXUDOHQHUJ\  .21'27(&5(3257

,Q HIIRUWV WR UHFRYHU IURP WKH *UHDW (DVW -DSDQ (DUWKTXDNH WKHUH KDV EHHQJURZWK LQ GHPDQG IRU DQFKRU EROWV URXQG VHSDUDWRUV DQG FDLVVRQ KDQJLQJURGV WKDW DUH QHFHVVDU\ IRU UHHVWDEOLVKLQJ LQIUDVWUXFWXUH DQG IRU FRQWDLQHUEDJVHWFWKDWDUHXVHIXOIRUGHFRQWDPLQDWLRQZRUN

,Q PDLQWHQDQFH DQG GHYHORSPHQW KLJKVSHHG WUDQVSRUWDWLRQ QHWZRUNVVFDIIROGLQJFKDLQVQHFHVVDU\IRUFRQGXFWLQJDHULDOZRUNDQG67.QHWVXVHGWR
SUHYHQWLQJIDOOVIURPDHULDOZRUNFRPHLQKDQG\,Q RUGHU WR HQKDQFH HDUWKTXDNHUHVLVWDQFH RI EXLOGLQJV EUDFHV DQG ZRRGHQ
KRXVHKDUGZDUHWKDWZHPDQXIDFWXUHLQRXUIDFWRULHVDUHHVVHQWLDO

7KH.21'27(&*URXSQRWRQO\VHOOV/('OLJKWLQJDQGVRODUSRZHUSDQHOVEXW
DOVRKDQGOHVEDVHPDWHULDOV IUDPHV QHFHVVDU\IRULQVWDOODWLRQ5HODWHGOLQNV
7R.21'27(&ZHEVLWH  3ULFHFRPSHWLWLRQ ,PSDFWRIIOXFWXDWLRQLQSURGXFWPDUNHWV,I SULFH FRPSHWLWLRQ ZLWK FRPSHWLWRUV FRQWLQXHV
WR LQWHQVLI\ LQ HDFK RI WKH SURGXFW PDUNHWV DQGORFDOPDUNHWVWRZKLFKWKH*URXSEHORQJVDQGLWEHFRPHVGLIILFXOWWRPDLQWDLQIDLUSULFHVWKLVPD\
KDYH DQ LPSDFW RQ WKH RSHUDWLQJ SHUIRUPDQFH
DQGILQDQFLDOSRVLWLRQRIWKH.21'27(&*URXS

3URFXUHPHQWSULFHVRIUDZPDWHULDOVIRUWKHSURGXFWVRI WKH .21'27(& *URXS WHQG WR IOXFWXDWH
GHSHQGLQJ RQ WKH GHPDQG  VXSSO\ WUHQGV RI VWHHOPDWHULDOV 7KH *URXS PDLQWDLQV UHODWLRQVKLSV ZLWKPXOWLSOHVXSSOLHUVWRPLWLJDWHDQGGLVSHUVHULVNVDQGZRUNV WR UHGXFH FRVWV UHODWHG WR SURGXFWLRQWHFKQRORJLHV LQ RUGHU WR VWDELOL]H DQG LQFUHDVHSURILWDELOLW\ +RZHYHU IOXFWXDWLRQV LQ WKH VWHHOPDWHULDOV PDUNHW PD\ KDYH DQ LPSDFW RQ WKHRSHUDWLQJ SHUIRUPDQFH DQG ILQDQFLDO SRVLWLRQ RI WKH
.21'27(&*URXS ,PSDFWRIGLVDVWHUVHWFRQ
PDQXIDFWXULQJVLWHV 'HIHFWV

7KH .21'27(& *URXS FDUULHV RXW SHULRGLF
LQVSHFWLRQV RI SRZHU DQG PDFKLQHU\ IDFLOLWLHV LQ
RUGHU WR PLQLPL]H GRUPDQW DGYHUVH HIIHFWV
FDXVHGE\DQLQWHUUXSWLRQLQWKHSURGXFWLRQOLQHV+RZHYHU WKHUH LV QR JXDUDQWHH WKDW WKH LPSDFW
FDXVHG E\ D GLVDVWHU SRZHU RXWDJH RU RWKHULQFLGHQW WKDW PLJKW RFFXU DWPDQXIDFWXULQJ VLWHV
FDQEHHQWLUHO\SUHYHQWHGRUUHGXFHG7KHUHIRUH
LQWKHHYHQWWKDWDQLQFLGHQWFDXVLQJLQWHUUXSWLRQRI RSHUDWLRQ RFFXUV RXU SURGXFWLRQ FDSDFLW\PLJKWGHFOLQHHYHQZKHQVXSSOHPHQWLQJDIIHFWHG
WDVNV EHWZHHQ IDFWRULHV WKDW PDQXIDFWXUH VDPHSURGXFWV RU SURGXFWLRQ LV RXWVRXUFHG WR D
FRRSHUDWLQJIDFWRU\,Q WKH HYHQW WKDW D FDVH RI FRPSHQVDWLRQ IRUGDPDJH DULVHV EDVHG RQ ZDUUDQW\ DJDLQVW GHIHFWVDQGSURGXFWOLDELOLW\LQFRQQHFWLRQZLWKWKHEXVLQHVVRI WKH .21'27(& *URXS VXFK FDVH PD\ KDYH DQ
LPSDFW RQ WKH RSHUDWLQJ SHUIRUPDQFH DQG ILQDQFLDOSRVLWLRQRIWKH*URXS 5HWLUHPHQWEHQHILWREOLJDWLRQV &UHGLWULVNRIFXVWRPHUV,QWKHHYHQWWKDWWKHIDLUYDOXHRISHQVLRQDVVHWVGHFOLQHV DQG WKHUH LV D FKDQJH WR WKHDVVXPSWLRQV VXFK DV LQYHVWPHQW \LHOG DQGGLVFRXQW UDWH XVHG IRU WKH FDOFXODWLRQ RI
UHWLUHPHQW EHQHILW REOLJDWLRQV WKLV PD\ KDYH DQ
LPSDFW RQ WKH RSHUDWLQJ SHUIRUPDQFH DQGILQDQFLDOSRVLWLRQRIWKH.21'27(&*URXS

7KH*URXSVHWVFUHGLWOLPLWVRQFXVWRPHUVEDVHGRQ
WKH GHJUHH RI FUHGLELOLW\ DV SDUW RI LWV HIIRUWV WR
SUHYHQWWKHRFFXUUHQFHRIEDGGHEW+RZHYHULIEDG
GHEW H[SHQVHV DULVH GXH WR WKH EDQNUXSWF\ RI D
FXVWRPHU WKLV PD\ KDYH DQ LPSDFW RQ RSHUDWLQJSHUIRUPDQFH DQG ILQDQFLDO SRVLWLRQ RI WKH
.21'27(&*URXS.21'27(& 9,6,21

7KH*URXSKDVEHHQPRYLQJIRUZDUGZLWKLWVHIIRUWVWRLQFUHDVHSURFXUHPHQWRILPSRUWHGPDWHULDOVIURPRYHUVHDV VXFK DV &KLQD LQ DQ HIIRUW WR GLVWULEXWH
FRPSHWLWLYH PHUFKDQGLVH +RZHYHU FKDQJHV LQ WKHSROLWLFDORUOHJDOHQYLURQPHQWFRQIXVLRQLQHFRQRPLF
VLWXDWLRQV DQG RWKHU XQIRUHVHHDEOH IDFWRUV LQ &KLQD
DQG RWKHU FRXQWULHV PLJKW FDXVH XV WR HQFRXQWHUSUREOHPV LQ H[HFXWLQJ RXU EXVLQHVV DQG PDNH LW
GLIILFXOWWRVHFXUHPHUFKDQGLVHDQGPDWHULDOV,Q DGGLWLRQ PDMRUYRODWLOLW\LQ WKH IRUHLJQ H[FKDQJHPDUNHW PD\ KDYH DQ LPSDFW RQ WKH RSHUDWLQJSHUIRUPDQFH DQG ILQDQFLDO SRVLWLRQ RI WKH
.21'27(&*URXS

),1$1&,$/'$7$

6LQFH VDOHV DVVRFLDWHG ZLWK SXEOLF LQYHVWPHQWV
DQG SULYDWH FDSLWDO LQYHVWPHQWV DFFRXQW IRU D
FRQVLGHUDEOHSHUFHQWDJHRIWKH*URXSbVVDOHVZH
DUHZRUNLQJWRHVWDEOLVKDQHZSLOODURIEXVLQHVV
DQG H[SDQG RXU EXVLQHVV DFWLYLWLHV +RZHYHUVWDJQDWLRQ LQ WKH FRQGLWLRQV RI WKH FRQVWUXFWLRQLQGXVWU\DQGDGHFOLQHLQGHPDQGFDXVHGE\VXFKFRQGLWLRQVPD\KDYHDQLPSDFWRQWKHRSHUDWLQJSHUIRUPDQFH DQG ILQDQFLDO SRVLWLRQ RI WKH
.21'27(&*URXS(19,5210(17 'HSHQGHQFHRQLPSRUWHGPDWHULDOVDQG);
IOXFWXDWLRQ  .21'27(&5(3257  *29(51$1&(

62&,$/

'HSHQGHQFHRQSXEOLFLQYHVWPHQWVDQG
SULYDWHFDSLWDOLQYHVWPHQWV

6833/(0(17:($5(.21'27(& ‫ٹ‬5LVNV),1$1&,$/'$7$

FINANCIALDATA&RQVROLGDWHG)LQDQFLDO+LJKOLJKWV&RQVROLGDWHG)LQDQFLDO3HUIRUPDQFH

‫پ‬



)LQDQFLDO,QIRUPDWLRQ  .21'27(&5(3257

‫پ‬

‫پ‬

‫پ‬

‫پ‬

‫پ‬

‫پ‬

‫پ‬

‫پ‬
‫پ‬
‫پ‬


+20(,5

5HODWHGOLQNV
7R.21'27(&ZHEVLWH 

2SHUDWLQJLQFRPH

3URILWDWWULEXWDEOHWRRZQHUVRI
SDUHQW &DSLWDOLQYHVWPHQW
'HSUHFLDWLRQ‫( پ‬%,7'$









            ‫ٹ‬5HVXOWVRI2SHUDWLRQV PLOOLRQ\HQDQG7KRXVDQG86GROODUV 
1HWVDOHV





?

??

?

?






























































                      ?
?



7RWDODVVHWV??

?

                      ?
?

1HWDVVHWV





,QWHUHVWEHDULQJGHEW











‫)ٹ‬LQDQFLDO3RVLWLRQ PLOOLRQ\HQDQG7KRXVDQG86GROODUV ‫&ٹ‬DVK)ORZV PLOOLRQ\HQDQG7KRXVDQG86GROODUV &DVKIORZVIURPRSHUDWLQJDFWLYLWLHV?

?

?

&DVKIORZVIURPLQYHVWLQJDFWLYLWLHV



 







 &DVKIORZVIURPILQDQFLQJDFWLYLWLHV&DVKDQGFDVKHTXLYDOHQWVHQGRI
\HDU



 

 





 







                      ‫ٹ‬3HU6KDUH,QIRUPDWLRQ <HQDQG86GROODUV 
3URILWDWWULEXWDEOHWRRZQHUVRI
SDUHQWSHUVKDUH
1HWDVVHWVSHUVKDUH
'LYLGHQGSHUVKDUH?

?

?

?

?






























                      























‫)ٹ‬LQDQFLDO,QGLFDWRUV2SHUDWLQJLQFRPHPDUJLQ   
3URILWDWWULEXWDEOHWRRZQHUVRI
SDUHQWPDUJLQ  ‫ پ‬52(  ‫ پ‬52$  ‫( پ‬TXLW\UDWLR  '2(  



































‫& پ‬XUUHQWUDWLR  







‫(' پ‬UDWLR  











‫) پ‬L[HGUDWLR  





















5DWLRRIUHWDLQHGHDUQLQJVWRWRWDO
DVVHWV  

?

?

?

                      
?
?









‫ٹ‬6WRFN3ULFH,QGH[6WRFNFORVLQJSULFH <HQ 
3ULFHHDUQLQJVUDWLR
7LPHV 

.21'27(& 9,6,21

),1$1&,$/'$7$

(19,5210(17

62&,$/*29(51$1&(





‫(پ‬%,7'$ ,QFRPHEHIRUHLQFRPHWD[HV,QWHUHVWH[SHQVHV‫پ‬52( 3URILWDWWULEXWDEOHWRRZQHUVRISDUHQW 1HWDVVHWV6XEVFULSWLRQULJKWVWRVKDUHV1RQFRQWUROOLQJ'HSUHFLDWLRQ LQWHUHVWV ‫پ‬52$ 3URILWDWWULEXWDEOHWRRZQHUVRISDUHQW7RWDODVVHWV‫(پ‬TXLW\UDWLR  1HWDVVHWV6XEVFULSWLRQULJKWVWRVKDUHV1RQFRQWUROOLQJLQWHUHVWV 7RWDODVVHWV‫&پ‬XUUHQWUDWLR &XUUHQWDVVHWV&XUUHQWOLDELOLWLHV‫('پ‬UDWLR ,QWHUHVWEHDULQJGHEW 1HWDVVHWV6XEVFULSWLRQULJKWVWRVKDUHV1RQFRQWUROOLQJLQWHUHVWV ‫)پ‬L[HGUDWLR 1RQFXUUHQWDVVHWV 1HWDVVHWV6XEVFULSWLRQULJKWVWRVKDUHV1RQFRQWUROOLQJLQWHUHVWV   .21'27(&5(3257  

6833/(0(17                                              :($5(.21'27(& &RQVROLGDWHG)LQDQFLDO+LJKOLJKWV),1$1&,$/'$7$
&RQVROLGDWHG)LQDQFLDO+LJKOLJKWV&RQVROLGDWHG)LQDQFLDO3HUIRUPDQFH

&RQVROLGDWHG)LQDQFLDO3HUIRUPDQFH

‫ٹ‬2SHUDWLQJLQFRPH PLOOLRQ\HQ ‫ٹ‬1HWVDOHV PLOOLRQ\HQ PLOOLRQ\HQPLOOLRQ\HQ8383

 

 

  










<HDU(QGHG





0DUFK

‫ٹ‬3URILWDWWULEXWDEOHWRRZQHUVRI SDUHQW PLOOLRQ\HQ ‫ٹ‬5HWXUQRQ(TXLW\ 52(  PLOOLRQ\HQ

83SRLQW83





<HDU(QGHG






<HDU(QGHG
0DUFK















0DUFK

  .21'27(&5(3257




<HDU(QGHG
0DUFK

PLOOLRQ\HQ8383






<HDU(QGHG






<HDU(QGHG

0DUFK

0DUFK

‫'ٹ‬LYLGHQGRQ(TXLW\UDWLR '2(  ‫'ٹ‬LYLGHQGSHUVKDUH <HQ \HQ

\HQ83SRLQW'2:1















*29(51$1&(



62&,$/

  

.21'27(& 9,6,21

PLOOLRQ\HQ),1$1&,$/'$7$

‫ٹ‬1HWDVVHWV PLOOLRQ\HQ (19,5210(17‫ٹ‬7RWDODVVHWV PLOOLRQ\HQ :($5(.21'27(& +20(,5

5HODWHGOLQNV
7R.21'27(&ZHEVLWH 




<HDU(QGHG
0DUFK





<HDU(QGHG
0DUFK

6833/(0(17  .21'27(&5(3257  

(6*

E

nvironment

ocial

S G

overnance(6*%DVLF3ROLF\(QYLURQPHQW6RFLDO*RYHUQDQFH

   .21'27(&5(3257

(QYLURQPHQW6RFLDO*RYHUQDQFH

*URZWKVWUDWHJ\RI.21'27(&5HODWHGOLQNV
7R.21'27(&ZHEVLWH +20(&65

(6*%DVLF3ROLF\:($5(.21'27(& (DUWK)ULHQGO\&RPSDQ\.21'27(&,1&,QUHFHQW\HDUV(6*LQYHVWPHQWVZKLFKYDOXHFRPSDQLHVWKDWJLYHFRQVLGHUDWLRQWRQRQ
ILQDQFLDOLQIRUPDWLRQRQ(QYLURQPHQWDO6RFLDODQG*RYHUQDQFHPDWWHUVKDYHEHHQ
6RFLDOUHVSRQVLELOLW\LQYHVWPHQW 65, ZKLFKRULJLQDWHGIURPWKHLGHDRILQYHVWRUVVXSSRUWLQJFRPSDQLHVWKDWGHPRQVWUDWHH[FHOOHQFHLQHQYLURQPHQWDOSURWHFWLRQDQGVLPLODUDFWLYLWLHV
KDVEHHQFRQYHQWLRQDOO\NQRZQDVDPHWKRGRILQYHVWPHQWWKDWJLYHVFRQVLGHUDWLRQWRQRQ
ILQDQFLDOLQIRUPDWLRQ7KHUHKDVEHHQJURZLQJDWWHQWLRQWRWKHFRQFHSWRI(6*LQYHVWPHQWUHFRJQL]LQJWKHLPSRUWDQFHRIHQYLURQPHQWDOVRFLDODQGJRYHUQDQFHFULWHULDOHDGVWRLQFUHDVLQJFRUSRUDWHYDOXHRYHUWKHORQJWHUP

.21'27(& 9,6,21

H[SDQGLQJ

$W.21'27(&ZHUHPDLQFRPPLWWHGWRKDYLQJ
),1$1&,$/'$7$

GLDORJXHZLWKVWDNHKROGHUVZKLOHFRQWLQXLQJWRSXUVXH&65DQGUHOHYDQWLQLWLDWLYHVZKLFKZH
KDYHFRQYHQWLRQDOO\FDUULHGRXWEDVHGRQRXU
FRUSRUDWHSKLORVRSK\ZKLFKYDOXHVWKH
GHYHORSPHQWRIKXPDQUHVRXUFHVDQGVRFLDOFRQWULEXWLRQ$WWKHVDPHWLPHZHDUH
GHWHUPLQHGWRIDFH(6*LVVXHVDQGFDUU\RXW

(19,5210(17

LQLWLDWLYHVZKLFKWDNHLQWRDFFRXQWWKHWKUHH
GLUHFWLRQVRIHQYLURQPHQWVRFLDODQG
JRYHUQDQFHLQUHFRJQLWLRQWKDWWKH\FRQWULEXWH
WRWKHHQKDQFHPHQWRIFRUSRUDWHYDOXHDVZH
DLPWRLQFUHDVHRXUFRUSRUDWHYDOXHRQDORQJ

62&,$/WHUP

(6*LWHPV*RYHUQDQFH%LRGLYHUVLW\(QYLURQPHQWDOSROOXWLRQ&RQQHFWLRQVZLWKORFDOFRPPXQLWLHV(TXDORSSRUWXQLW\%RDUGRI'LUHFWRUV$QWLFRUUXSWLRQ(QYLURQPHQWDOLPSDFW(QYLURQPHQWDOSROLF\

6KDUHKROGHUV 
LQYHVWRUV+XPDQULJKWV)HPDOHGLUHFWRUV5HJXODWRU\RUJDQV:DWHUUHVRXUFHPDQDJHPHQW

&OLPDWH
FKDQJHV

6XSSO\FKDLQODERU

+HDOWK 
VDIHW\RIHPSOR\HHV$FFRXQWDELOLW\WR
VWDNHKROGHUV&RGHRI(WKLFV(QYLURQPHQWDOLQIRUPDWLRQGLVFORVXUH

5HODWLRQVKLSVZLWKFXVWRPHUVDQGEXVLQHVVSDUWQHUV6RXUFH0DWHULDOUHOHDVHGE\0LWVXELVKL8)-
7UXVWDQG%DQNLQJ&RUSRUDWLRQ  .21'27(&5(3257  *29(51$1&(*29(51$1&(6RFLDO

6833/(0(17(QYLURQPHQW

(6*



(6*%DVLF3ROLF\(QYLURQPHQW6RFLDO*RYHUQDQFH

(19,5210(17 

3URPRWLQJ+DUPRQ\ZLWK&RPPXQLWLHVDQGWKH(QYLURQPHQW
:HRSHUDWHLQKDUPRQ\ZLWKORFDOFRPPXQLWLHVDQGFRQWULEXWHWRUHDOL]LQJDQHQULFKHGHQYLURQPHQW
7KH.21'27(&*URXSDUHGHWHUPLQHGWRDFWLYHO\EHLQYROYHGZLWKORFDOFRPPXQLWLHVE\PDNLQJXVHRI
RXUH[SHULHQFHQXUWXUHGWKURXJKFRQGXFWLQJFRUSRUDWHDFWLYLWLHVLQDQLQQRYDWLYHDQGSLRQHHULQJZD\LQ
OLQHZLWKRXUFRUSRUDWHSKLORVRSK\LQDQHIIRUWWRFRQWULEXWHWRFUHDWLQJDQDIIOXHQWVRFLHW\‫&ٹ‬OHDQLQJDFWLYLWLHV$V SDUW RI RXU &65 LQLWLDWLYHVHPSOR\HHV YROXQWHHU WR FOHDQ
WKH QHLJKERUKRRG RI RXU KHDG
RIILFH LQ DQ HIIRUW WRFRQWULEXWH
WRPDNLQJWKHORFDOFRPPXQLW\EHDXWLIXO‫)ٹ‬RUHVWSUHVHUYDWLRQDFWLYLWLHV$V SDUW RI RXU HGXFDWLRQ IRUQHZHPSOR\HHVZHSDUWLFLSDWH
LQ IRUHVW SUHVHUYDWLRQ DFWLYLWLHVDV YROXQWHHUV :LWK WKHFRRSHUDWLRQ RI 2VDND *UHHQ
7UXVW ZH DUH LQYROYHG LQ
WKLQQLQJ ZRUN DQG SHGHVWULDQ
URDGGHYHORSPHQW‫ٹ‬3(7ERWWOHFDSFROOHFWLRQDFWLYLW\:H RUJDQL]H D FDS FROOHFWLRQDFWLYLW\ZKHUHZHVHSDUDWHDQG
FROOHFW3(7ERWWOHFDSVWKDWDUH
RWKHUZLVH LQFLQHUDWHG DQG ZH
GRQDWH WKH SURILW IURP WKHVDOHV RI FDSV WR UHF\FOLQJ
EXVLQHVVRSHUDWRUV   .21'27(&5(3257

5HODWHGOLQNV
7R.21'27(&ZHEVLWH :($5(.21'27(& +20(&65 ‫(ٹ‬QHUJ\VDYLQJLQLWLDWLYHV
3DUWLFLSDWLRQLQn)XQWR6KDUH|

.21'27(& 9,6,21

n)XQWR6KDUH|LVDFOLPDWHFKDQJHFDPSDLJQRUJDQL]HGE\WKH0LQLVWU\RIWKH
(QYLURQPHQW ZLWK D YLHZ WR UHDOL]LQJ D ORZFDUERQ VRFLHW\ ,Q RUGHU WR
SURWHFWWKHHQYLURQPHQWOHDGLQJWRWKHIXWXUHZHSDUWLFLSDWHLQWKLVDFWLYLWLHVUXQ XQGHU WKH NH\ SKUDVH nUHDOL]LQJ D ORZFDUERQ VRFLHW\ ZLWK WKH VSLULW RI
PRWWDLQDL|
'ULYHWRDFKLHYHFXWLQSRZHUXVDJH

),1$1&,$/'$7$

.21'27(&SURPRWHVWUDQVSDUHQF\RISRZHUXVDJHE\PDNLQJWKHPRQWKO\SRZHU XVDJH LQIRUPDWLRQ RSHQ WR DOO RIILFHV DQG FRQGXFWLQJ DQDO\VHV DQGFRPSDULVRQVRIGDWD:HODXQFKHGWKHFRROEL]DQGZDUPEL]LQLWLDWLYHVZLWKD YLHZ WR UHGXFLQJ SRZHU XVDJH LQ RXU RIILFHV E\  \HDU RQ \HDU DQGKDYHEHHQXSGDWLQJHQHUJ\VDYLQJDFWLYLWLHVGDLO\

3URPRWLQJ/('V(19,5210(17,Q  ZH FRPSOHWHG LQVWDOOLQJ /(' OLJKWLQJ LQIDFWRULHV DQG DUH FXUUHQWO\ LQ WKH SURFHVV RI
LQVWDOOLQJ /(' OLJKWLQJ LQ RXU RIILFHV :H SODQ RQFRPSOHWLQJ/('LQVWDOODWLRQVLQDOORIWKHSURSHUWLHVZHRZQE\


7KHVH /(' LQVWDOODWLRQV DUH EHLQJ FDUULHG RXW LQ
FRRSHUDWLRQ ZLWK 6DQZD 'HQ]DL &R /WG RXUVXEVLGLDU\DQGZKROHVDOHURIHOHFWULFHTXLSPHQW/('LPSOHPHQWHGVLWH/('WREHLPSOHPHQWHGVLWH
/HDVHGVLWH7UDQVLWLRQRIDQQXDO SRZHU JHQHUDWLRQWKRXVDQGN:K 

2XU VXEVLGLDU\ 6DQZD 'HQ]DL &R /WG DQG.21'27(&bV 6WHHO )UDPH %XLOGLQJ 6DOHV 'LYLVLRQKDQGOH SDUWV RI VRODU SRZHU JHQHUDWLRQ V\VWHPV
DQG IUDPHV UHVSHFWLYHO\ DQG ZH SXUVXH VDOHV E\OHYHUDJLQJV\QHUJLVWLFHIIHFWVཱྀவੵৃ
6KLJD)DFWRU\

155

321

ঢ়ূੵৃ
.DQWR)DFWRU\

306

847

861

812






  .21'27(&5(3257  *29(51$1&(.21'27(&bVWZRIDFWRULHVDQG6DQZD'HQ]DL&R
/WGRSHUDWHWKHVRODUSRZHUJHQHUDWLRQV\VWHPDV
WKHLQVWDOODWLRQPRGHOLQRXUSRZHUVDOHVEXVLQHVV

6833/(0(17‫ٹ‬6RODUSRZHUJHQHUDWLRQ

62&,$/



(6*

 

(6*%DVLF3ROLF\(QYLURQPHQW6RFLDO*RYHUQDQFH

(19,5210(17‫ٹ‬6DOHRIHFRUHODWHGPHUFKDQGLVH
:LWK JURZLQJ LQWHUHVW LQ HQYLURQPHQWDO SURWHFWLRQ RYHU WKH ODVW IHZ \HDUV ZH DUH DOVRKDQGOLQJ PHUFKDQGLVH WKDW KDV D OHVVHU LPSDFW RQ WKH HQYLURQPHQW DQG PHUFKDQGLVH WKDWDUHVXLWDEOHIRUUHGXFLQJHQYLURQPHQWDOSROOXWLRQ (FRPROG1

7KLV LV D ZDWHUVROXEOH FRQFUHWH IRUP UHOHDVLQJ DJHQW WKDW XVHV YHJHWDEOH
RLOEDVHGUDZPDWHULDOV&RPSDUHGZLWKDQRLOEDVHGSURGXFWLWOHDYHVOLWWOH
FRQFUHWHRQWKHPROGDQGFDQEHXVHGZLWKHDVH

(FRPDUNDXWKRUL]HGQXPEHU1(7,6UHJLVWUDWLRQQXPEHU&*$‫(ٹ‬QHUJ\FRQVXPSWLRQ\HDURQ\HDUFRPSDULVRQ .21'27(&QRQFRQVROLGDWHG
7KHWDEOHSUHVHQWVD\HDURQ\HDUFRPSDULVRQRIXQLWRIHQHUJ\FRQVXPSWLRQZKLFKLVUHSRUWHGWRWKH
.DQVDL%XUHDXRI(FRQRP\7UDGHDQG,QGXVWU\HDFK\HDU<HDURQ<HDUFKDQJH  









&KDQJHLQ\HDUDYHUDJHFRQVXPSWLRQ
UDWH









‫ٹ‬0DWHULDOEDODQFH
7KH IROORZLQJ LOOXVWUDWHV WKH RYHUDOO LQSXWRXWSXW EDODQFH DQG H[SHQGLWXUHV DQG UHYHQXHV GXULQJ WKHFRXUVHIURPUHVHDUFKDQGGHYHORSPHQWWRPDQXIDFWXULQJZLWKLQWKHEXVLQHVVDFWLYLWLHVRI.21'27(&$FWXDOUHVXOWVRI.\XVKX)DFWRU\RXUPDLQIDFWRU\DUHXVHG

287387

,13875DZ
PDWHULDOV,UULJDWLRQZDWHU

'LHVHOIXHO⒝

.HURVHQH

⒝

+HDY\RLO

⒝

:DWHU

P%XVLQHVVDFWLYLWLHV(QHUJ\,URQDQG
W
VWHHO
&RDWLQJ
PPDWHULDO(OHFWULFLW\ N:K
1DWXUDOPҩ1RU3-
JDV
/3*
W

([SHQGLWXUH UHODWLQJWRHQYLURQPHQWDOSURWHFWLRQ!
&RVWIRUSUHYHQWLQJZDWHUSROOXWLRQ‫ڀ‬2LOZDWHUVHSDUDWRUWDQNFOHDQLQJDQGRLOOHDNDJHLQYHVWLJDWLRQ WKRXVDQG\HQ 

&RVWIRUSUHYHQWLQJXQSOHDVDQWRGRUV‫ڀ‬,QVWDOODWLRQRIIDQVZLWKRUJDQLFVROYHQWDGVRUEHQWILOWHULQYDUQLVKFRDWLQJDUHD 
WKRXVDQG\HQ    .21'27(&5(3257

3URGXFWLRQ,URQ VWHHOSURGXFWVW

$LUHPLVVLRQ&2W

5HF\FOHGYROXPHW,QGXVWULDOZDVWHE\SURGXFW $PRXQWRIRXWVRXUFHGGLVSRVDO'UDLQDJH:DWHU

W
P

5HYHQXHVUHODWLQJWRHQYLURQPHQWDOSURWHFWLRQ!

5HYHQXHVLQEXVLQHVVIRUUHF\FOLQJZDVWH HJVWHHO VFUDSV  JHQHUDWHG IURP PDMRUEXVLQHVVDFWLYLWLHV RU UHF\FOLQJ XVHG SURGXFWV HWFWKRXVDQG\HQ 

+20(&65

:($5(.21'27(& 62&,$/
.HHSLQJ&ORVHWR&XVWRPHUV%\WDNLQJDGYDQWDJHRIEHLQJDZKROHVDOHFRPSDQ\ZLWKDPDQXIDFWXULQJGLYLVLRQZH
ZLOOVWULYHWRLQFUHDVHFXVWRPHUVDWLVIDFWLRQ$VDZKROHVDOHFRPSDQ\ZLWKDPDQXIDFWXULQJGLYLVLRQZHPDLQWDLQIDFWRULHVDWIRXUORFDWLRQVLQ-DSDQDQG
SURYLGH SURGXFWV DQG PHUFKDQGLVH WKDW PHHWV WKH QHHGV RI VRFLHW\ EDVHG RQ FORVH GLDORJXH ZLWK EXVLQHVVSDUWQHUVDQGFXVWRPHUVLQDQHIIRUWWRLQFUHDVHFXVWRPHUVDWLVIDFWLRQ‫ٹ‬6DIHW\PHDVXUHVIRUSURGXFWV),1$1&,$/'$7$

)URP WKH SHUVSHFWLYH RI SURYLGLQJ VDIH TXDOLW\ SURGXFWV DOO RI RXU IDFWRULHV
KDYHDFKLHYHG,62,QDGGLWLRQWRIXUWKHUHQKDQFHWKHTXDOLW\RISURGXFWVZH KDQGOH WKH 4XDOLW\ &RQWURO 6HFWLRQ KDV EHHQ HVWDEOLVKHG LQ WKH0DQXIDFWXULQJ +HDGTXDUWHUV DQG WKH VHFWLRQ SHUIRUPV VWUHQJWK WHVWLQJ DQGLQVSHFWLRQVRQDGD\WRGD\EDVLV*RLQJ IRUZDUG ZH ZLOO DLP WR DFKLHYH ,62 ZKLFK LV DQ LQWHUQDWLRQDOVWDQGDUGUHODWHGWRWKHHQYLURQPHQW

.21'27(& 9,6,21

5HODWHGOLQNV
7R.21'27(&ZHEVLWH .21'27(& KROGV 1HZ 0HUFKDQGLVH &RPPLWWHH PHHWLQJV MRLQWO\ EHWZHHQ LWV VDOHV GLYLVLRQ DQGPDQXIDFWXULQJGLYLVLRQDQGDFWLYHO\WDNHVVWHSVIRUGHYHORSLQJDQGLPSURYLQJSURGXFWVDQGPHUFKDQGLVHE\OHYHUDJLQJ LWV SRVLWLRQ DVD PDQXIDFWXUHUDQG PDNLQJ WKH EHVW RI LWVFDSDELOLW\ DVD ZKROHVDOHFRPSDQ\ WR
FDSWXUHFRPPHQWVRIFOLHQWV

*29(51$1&(

62&,$/([DPSOH.7KDUQHVV
7KH QHHG IRU VDIHW\ KDUQHVVHV LV JURZLQJ IURP WKHSHUVSHFWLYH WKDW WKH\ RIIHU VDIHW\ DQG UHGXFH
GDPDJH WR WKH ERG\ LQ WKH HYHQW RI D IDOO :H
GLVWULEXWH n.7 KDUQHVV| D .21'27(& EUDQGSURGXFW

‫ٹ‬5HVSRQVHWRFRPSODLQWV,QWKHHYHQWWKDWDFRPSODLQWLVUDLVHG.21'27(&ILUVW KDV WKH VDOHV UHSUHVHQWDWLYH PHHW ZLWK WKHFXVWRPHU DQG SUHSDUH D UHSRUW :KHQ WKHUH LV D
QHHG WR LQYHVWLJDWH WKH FDXVH LI WKH FDVH SHUWDLQVWR D SURGXFW PDQXIDFWXUHG LQKRXVH WKH 4XDOLW\&RQWURO 6HFWLRQ LQ WKH 0DQXIDFWXULQJ +HDGTXDUWHUVWDNHVWKHQHFHVVDU\VWHSVZKLOHLIWKHFDVHSHUWDLQVWRSURFXUHGPHUFKDQGLVHZHWDNHVWHSVMRLQWO\ZLWKWKH VXSSOLHU :H KDYH D PHFKDQLVP WR VKDUHFRPSODLQWV ZKHUHE\ KROGLQJ D PHHWLQJ RQ
FRPSODLQWV LUUHJXODUO\ KHOG  DQG FDVHV WKDW VKRXOG
EHVKDUHGRQDFRUSRUDWHZLGHEDVLVDUHDGGUHVVHG
WR WKH HQWLUH RUJDQL]DWLRQ E\ LVVXLQJ D VDOHV UHSRUWRU JXLGDQFH WR GUDZ DWWHQWLRQ LQ RUGHU WR VKDUH
LQIRUPDWLRQ  .21'27(&5(3257  

6833/(0(17([DPSOH&KDLQVOLQJPDQXIDFWXUHGE\3HZDJ,Q RUGHU WR PDNH .21'27(& NQRZQ DV D OHDGLQJSURYLGHU RI OLIWLQJ HTXLSPHQW ZH VHUYH DV WKH VROH
DJHQW LQ -DSDQ IRU 3HZDJ DQ $XVWULDQ FRPSDQ\ZLWK ZRUOGZLGH UHFRJQLWLRQ DQG D \HDU KLVWRU\
DV D PDQXIDFWXUHU RI FKDLQV DQG DFFHVVRULHV DQGSURYLGH WKH GRPHVWLF PDUNHW ZLWK KLJKO\ UHOLDEOH
OLIWLQJHTXLSPHQW

(19,5210(17‫ٹ‬7RDVFHUWDLQWKHQHHGVRIFXVWRPHUV

(6*



(6*%DVLF3ROLF\(QYLURQPHQW6RFLDO*RYHUQDQFH

7RJHWKHUZLWK6KDUHKROGHUVDQG,QYHVWRUV:HRIIHUIDLUDFFXUDWHDQGVSHHG\LQIRUPDWLRQGLVFORVXUHLQDQHIIRUWWRKDYHDOOVWDNHKROGHUVGHHSHQWKHLUXQGHUVWDQGLQJRIWKH.21'27(&*URXS
:H UHFRJQL]H WKH LPSRUWDQFH RI KDYLQJ VKDUHKROGHUV DQG LQYHVWRUV JDLQ DQ XQGHUVWDQGLQJ RI WKH
.21'27(& *URXS )RU WKLV UHDVRQ ZH EHDU LQ PLQG WKH QHHG WR RIIHU FDUHIXO H[SODQDWLRQV WRVKDUHKROGHUVDQGLQYHVWRUVDVZHOODVWRHQVXUHIDLUDFFXUDWHDQGVSHHG\LQIRUPDWLRQGLVFORVXUH)XUWKHULQRUGHUWRFRQWULEXWHWRLQFUHDVLQJWKHFRUSRUDWHYDOXHRIWKH.21'27(&*URXSZHZRUNWR VWUHQJWKHQ RXU ILQDQFLDO SRVLWLRQ DQG WDNH RWKHU VWHSV WRHQKDQFH RXUHDUQLQJV FDSDELOLW\ZKLOHSXUVXLQJ VWUDWHJLF LQYHVWPHQW E\ 0 $ DQG RWKHU PHDQV DV ZHOO DV DFWLYHO\ H[SDQGLQJ EXVLQHVVLQYHVWPHQWDLPHGDWJURZWK$WWKHVDPHWLPHZHWDNHLQLWLDWLYHVWRLPSURYHFDSLWDOHIILFLHQF\‫ٹ‬,5SROLF\%DVLFSROLF\.21'27(&ZLOOPDNHHIIRUWVWRKDYHDOOVWDNHKROGHUVLQFOXGLQJVKDUHKROGHUVDQGLQYHVWRUVJDLQD EHWWHU XQGHUVWDQGLQJ DERXW RXU &RPSDQ\ DQG ZLOO GLVFORVH LPSRUWDQW LQIRUPDWLRQ RQ WKH&RPSDQ\E\FRQVLGHULQJIDLUQHVVDFFXUDF\DQGWLPHOLQHVVLQRUGHUWRVXSSRUWVWDNHKROGHUVPDNHDSSURSULDWHDVVHVVPHQWV,QIRUPDWLRQGLVFORVXUHVWDQGDUGV
.21'27(&ZLOOFRQGXFWLQIRUPDWLRQGLVFORVXUHLQDFFRUGDQFHZLWKWKH)LQDQFLDO,QVWUXPHQWVDQG
([FKDQJH $FW DQG RWKHUUHOHYDQW ODZVDQG DOVRZLWK WKH WLPHO\ GLVFORVXUHUXOHV VHW IRUWK E\ WKHVWRFNH[FKDQJHRQZKLFKWKHVWRFNRIWKH&RPSDQ\LVOLVWHG.21'27(&ZLOODOVRDFWLYHO\GLVFORVH
LQIRUPDWLRQQRWUHTXLUHGWREHGLVFORVHGXQGHUODZVUHJXODWLRQVDQGUXOHVLIVXFKLQIRUPDWLRQLVMXGJHGWREHXVHIXOIRUVKDUHKROGHUVDQGLQYHVWRUV,QIRUPDWLRQGLVFORVXUHPHWKRGV.21'27(& ZLOO GLVFORVH LQIRUPDWLRQ YLD WKH 7LPHO\ 'LVFORVXUH1HWZRUN 7'QHW  SURYLGHG E\ WKHVWRFNH[FKDQJHDVZHOODVDFWLYHO\PDNHXVHRIWKH&RPSDQ\bVZHEVLWHLQDQHIIRUWWRFRQGXFWIDLU
DQGVSHHG\LQIRUPDWLRQGLVFORVXUH)XWXUHSURMHFWLRQV)XWXUHRSHUDWLQJSHUIRUPDQFHSURMHFWLRQVWKDWWKH&RPSDQ\UHOHDVHVDUHEDVHGRQGDWDDYDLODEOH
DWWKHWLPHRIPDNLQJWKHUHOHDVH$FWXDOUHVXOWVPD\GLIIHUFRQVLGHUDEO\IURPSURMHFWLRQVGXHWRYDULRXVIDFWRUVDQGFKDQJHV,5TXLHWSHULRG,Q RUGHU WR SUHYHQW OHDNDJH RI ILQDQFLDO UHVXOWV LQIRUPDWLRQ DQG HQVXUH IDLUQHVV .21'27(&REVHUYHVDTXLHWSHULRGZKLFKUXQVIRUDIHZZHHNVXSWRWKHUHOHDVHRIILQDQFLDOUHVXOWV'XULQJWKLVTXLHWSHULRGZHZLOOUHIUDLQIURPUHVSRQGLQJWRFRPPHQWVTXHVWLRQVHWFUHJDUGLQJILQDQFLDOUHVXOWV ,I KRZHYHU ZH EHFRPH DZDUH RI WKH SRVVLELOLW\ GXULQJ WKH TXLHW SHULRG WKDW RSHUDWLQJSHUIRUPDQFH ILJXUHV ZLOO GHYLDWH VLJQLILFDQWO\ IURP WKH &RPSDQ\bV IRUHFDVWV ZH ZLOO GLVFORVH
LQIRUPDWLRQDVQHHGHG

   .21'27(&5(3257

5HODWHGOLQNV
7R.21'27(&ZHEVLWH +20(,5‫ٹ‬,5DFWLYLWLHV‫ځ‬1LNNHL,5 ,QYHVWPHQW)DLULQZKLFKZH

‫ڂ‬%XVLQHVVUHSRUWLVVXHGVHPL   DQQXDOO\‫&ځ‬RPSDQ\LQIRUPDWLRQSXEOLVKHGLQ  DQHDV\WRXQGHUVWDQG  PDQQHURQWKH.21'27(&ZHEVLWH

*29(51$1&(

723,&6

62&,$/

(19,5210(17SDUWLFLSDWHLQ$XJXVWHYHU\\HDU),1$1&,$/'$7$

.21'27(& 9,6,21

%HDULQJ LQ PLQG WKH QHHG WR RIIHU LQIRUPDWLRQ GLVFORVXUH WKDW WDNHV LQWR DFFRXQW IDLUQHVV DFFXUDF\ DQGWLPHOLQHVV .21'27(& RUJDQL]HV EULHILQJV IRU LQVWLWXWLRQDO LQYHVWRUV DQG LQGLYLGXDO LQWHUYLHZV OHG E\ WKH3UHVLGHQW SDUWLFLSDWHV DFWLYHO\ LQ ,5 HYHQWV IRU LQGLYLGXDO LQYHVWRUV DQG GLVFORVHV ,5 PDWHULDOV YLD WKH&RPSDQ\bVZHEVLWH
:($5(.21'27(& 

7RJHWKHUZLWK6KDUHKROGHUVDQG,QYHVWRUV

7KH&RPSDQ\bVZHEVLWHZDVVHOHFWHGE\‫ٲ‬1LNNR,5DVWKHEHVWVLWHIRUWKUHHFRQVHFXWLYH\HDUVDQGE\6833/(0(17‫ٲ‬0RUQLQJVWDUDVDQH[FHOOHQWFRPSDQ\LQWKH,5ZHEVLWHUDQNLQJV:H ZLOO FRQWLQXH WR IXUWKHU HQKDQFH RXU ZHEVLWH DQG FRQGXFWWLPHO\DQGIDLULQIRUPDWLRQGLVFORVXUHWRDOOVWDNHKROGHUVLQFOXGLQJVKDUHKROGHUV  .21'27(&5(3257  

(6*



 

(6*%DVLF3ROLF\(QYLURQPHQW6RFLDO*RYHUQDQFH

7RJHWKHUZLWK2XU(PSOR\HHV
'LYHUVLW\%DVLFSULQFLSOH
.21'27(& UHFRJQL]HV WKH LPSRUWDQFH RI HVWDEOLVKLQJ D ZRUNLQJ HQYLURQPHQW LQ ZKLFK HPSOR\HHVZLWKGLYHUVHEDFNJURXQGVIXOO\GHPRQVWUDWHWKHLUUHVSHFWLYHDELOLWLHVDQGDUHPRWLYDWHGWRZRUNLQRUGHU WR FRQWULEXWH WR FUHDWLQJ DQ DIIOXHQW VRFLHW\ DV VWDWHG LQ RXU FRUSRUDWH SKLORVRSK\ )RU WKLVUHDVRQZHWDNHLQLWLDWLYHVWRSURPRWHGLYHUVLW\DQGDJRRGZRUNOLIHEDODQFHDQGPDNHHIIRUWVWRQXUWXUHDFRUSRUDWHFOLPDWHZKHUHHPSOR\HHVFDQZRUNZLWKOLYHO\

7RFUHDWHDSODWIRUPRQZKLFKGLYHUVHKXPDQUHVRXUFHVFDQWDNHOHDGLQJUROHV$SSRLQWPHQWRIKXPDQUHVRXUFHV(VWDEOLVKPHQWRIZRUNLQJHQYLURQPHQWVWUXFWXUH

6NLOOVGHYHORSPHQW$SSRLQWPHQWRIKXPDQUHVRXUFHV‫ٹ‬+XPDQUHVRXUFHVGHYHORSPHQWQRQGLVFULPLQDWRU\HPSOR\PHQW KLULQJSROLF\,Q KLULQJ HPSOR\HHV .21'27(& UHVSHFWV WKH GLYHUVH FKDUDFWHULVWLFV RI LQGLYLGXDOV LQFOXGLQJ DJH
JHQGHUDQGQDWLRQDOLW\:HDOVRRIIHUVXSSRUWWRDWKOHWHVDVZHOODVDSSRLQWKLJKO\PRWLYDWHGFRQWUDFWZRUNHUV DV UHJXODU HPSOR\HHV ,Q -XQH  .21'27(& DSSRLQWHG RQH IHPDOH GLUHFWRU ZKR KDV
EHHQWDNLQJDQDFWLYHUROH

0DOHIHPDOHUDWLRRIQHZHPSOR\HHVLQWKHODVWILYH\HDUVDQGKRPHFRXQWULHVRI
LQWHUQDWLRQDOVWXGHQWV <HDURIHPSOR\PHQW

0DOH

)HPDOH7RWDO

1DWLRQDOLW\RILQWHUQDWLRQDOVWXGHQWV RWKHUWKDQ-DSDQ  $SULOSHUVRQVSHUVRQVSHUVRQV $SULO

SHUVRQVSHUVRQVSHUVRQV $SULOSHUVRQVSHUVRQVSHUVRQV

7KDLODQG9LHWQDP $SULOSHUVRQVSHUVRQVSHUVRQV&KLQD

 $SULO

SHUVRQVSHUVRQVSHUVRQV

0\DQPDU&KLQD,QGRQHVLD7KDLODQG

$SSRLQWPHQWRIDIHPDOHGLUHFWRURXWRI   .21'27(&5(3257

5HODWHGOLQNV
7R.21'27(&ZHEVLWH +20(&65

7RJHWKHUZLWK2XU(PSOR\HHV

,QFHQWLYHVJLYHQWRGDWH

1XPEHURIVKDUHVDFTXLUHG

1XPEHURIVKDUHVJUDQWHG









'DWH











1XPEHURIVKDUHVVKDUHVVKDUHVVKDUHVVKDUHVVKDUHV

(OLJLEOHSHUVRQVSHUVRQVSHUVRQVSHUVRQVSHUVRQV'XULQJ  WR  ZH LQWURGXFHG n(6KLS|  DQ DGYDQFHG (PSOR\HHV VKDUHKROGHUV DVVRFLDWLRQ XVLQJ
WKHWUXVWPHFKDQLVPDVSDUWRIRXUZHOIDUHEHQHILWSURJUDPIRUHPSOR\HHVDQGGLVWULEXWHGDWRWDORIPLOOLRQ\HQWRHPSOR\HHVZKRZHUH(PSOR\HHVVKDUHKROGHUVDVVRFLDWLRQPHPEHUV‫ٹ‬0HDVXUHVWRHQVXUHVDIHW\RIHPSOR\HHV
:H KROG D VDIHW\ DQG K\JLHQH FRPPLWWHH PHHWLQJ DW WKH KHDG RIILFH DQG WKH IDFWRU\ RQFH D PRQWK LQ DQ
HIIRUWWRSUHYHQWZRUNUHODWHGDFFLGHQWV:H DOVR SURPRWH RXU QRDFFLGHQW SROLF\ E\ LQWURGXFLQJ WHOHPDWLFV DV SDUW RI RXU n]HUR WUDIILF DFFLGHQWPRYHPHQW|LQFRQQHFWLRQZLWKRXUVDOHVDQGWUDQVSRUWDFWLYLWLHVLVVXLQJDFRPSDQ\ZLGHDOHUWLQWKHHYHQW
RIDFDUDFFLGHQWDVZHOODVWDNLQJRWKHUVWHSV‫ٹ‬:RUNOLIHEDODQFH

.21'27(& 9,6,21

,Q 2FWREHU  .21'27(& LQWURGXFHG DQ (623 ZKLFK RIIHUV VKDUHV WR HPSOR\HHV ZKR KDYH EHHQ
SURPRWHGRUDVVXPHGDSRVLWLRQ%\LVVXLQJVKDUHVDVDQLQFHQWLYHWRHPSOR\HHVRIWKH&RPSDQ\ZHHQFRXUDJHHPSOR\HHVWRKHLJKWHQWKHLUPRWLYDWLRQ DQG PRUDOH WRZDUG HQKDQFLQJ SHUIRUPDQFH DV SDUW RI RXU HIIRUW WR LQFUHDVH FRUSRUDWH YDOXH RI
WKH&RPSDQ\LQWKHPHGLXPDQGORQJWHUP),1$1&,$/'$7$

(PSOR\HHVWRFNRZQHUVKLSSODQ (623  WUXVWW\SH(623 (6KLS (19,5210(17‫(ٹ‬QKDQFHPHQWRIUHPXQHUDWLRQDQGEHQHILWVSURJUDPV:($5(.21'27(& (VWDEOLVKPHQWRIZRUNLQJHQYLURQPHQWVWUXFWXUH

另3DLGYDFDWLRQDFTXLVLWLRQWDUJHWIRU$SULOWR0DUFK



62&,$/

,Q DQ HIIRUW WR SXW LQ SODFH D IDYRUDEOH ZRUNLQJ HQYLURQPHQW ZH DLP WR LPSURYH WKH SHUFHQWDJH RI SDLG
YDFDWLRQ WDNHQ WKH UDWLR RI FKLOG FDUH OHDYH WDNHQ DQG WKH SHUFHQWDJH RI ZRUNHUV UHWXUQLQJ WR ZRUN DIWHUWDNLQJOHDYH

6NLOOVGHYHORSPHQWGHYHORSLQJ KXPDQ UHVRXUFHV WKDW VKDSH WKH IXWXUH HGXFDWLRQ WR UHLQIRUFH PDQDJHPHQW VNLOOV DQG KROGLQ DFFRUGDQFH ZLWK WKH &RPSDQ\bV FRUSRUDWH VHQLRU PDQDJHU FDQGLGDWH GHYHORSPHQW WUDLQLQJSKLORVRSK\ :H RIIHU QHZ HPSOR\HH WUDLQLQJSURJUDPV IRU \RXQJHU HPSOR\HHV DQG IROORZ XS RQ
QHZ HPSOR\HHV E\ GHVLJQDWLQJ D PRUH H[SHULHQFHGHPSOR\HH RI D VLPLODU DJH DW WKH DVVLJQHG
GHSDUWPHQW WR VHUYH DVD RQHWRRQH VXSHUYLVRU IRUQHZ HPSOR\HHV :H WKHQ RIIHU WUDLQLQJ IRU QHZHPSOR\HHVVL[PRQWKVDIWHUWKH\HQWHUWKHFRPSDQ\
DQGDJDLQWKUHH\HDUVODWHU








SURJUDPV DFFRUGLQJ WR WKH QXPEHU RI \HDUV RI
HPSOR\PHQW LQ RUGHU WR GHYHORS KXPDQ UHVRXUFHVZKRJURZZLWKWKHFRPSDQ\)XUWKHUPRUHZHHVWDEOLVKHGDQLQWHUQDOO\DXWKRUL]HGnOLIWLQJHTXLSPHQWDGYLVHU|TXDOLILFDWLRQZKLFKOHDGVWR HQKDQFLQJ HPSOR\HHVb NQRZOHGJH RQ SURGXFWVDQGPHUFKDQGLVH






  .21'27(&5(3257  

6833/(0(17.21'27(& FDUULHV RXW HGXFDWLRQDO SURJUDPV IRU DQG QH[WJHQHUDWLRQ VHQLRU PDQDJHUV ZH SURYLGH

*29(51$1&(‫(ٹ‬GXFDWLRQ WUDLQLQJV\VWHPV

(6*



 

(6*%DVLF3ROLF\(QYLURQPHQW6RFLDO*RYHUQDQFH

SPECIAL CONTENTS

KONDOTEC&SPORTS.21'27(&FRQWLQXHVWRVXSSRUWVSRUWLQJFRPSHWLWLRQVRIDWKOHWHHPSOR\JDPHV$W.21'27(&bVWUDFN ILHOGDQGEDVHEDOOFOXEVHPSOR\HHVSUDF

2XUHPSOR\HH
0V.X]HKDV
EHHQVHOHFWHG
DVD$SULOFHUWLILHGDWKOHWH
IRUWKH2O\PSLF
JDPHV

,QWURGXFWLRQ RI $SULO

QHZ HPSOR\HHV DLPLQJJ WR
WRSDUWLFLSDWH LQ WKH 7RN\R
RN\R
2O\PSLFJDPHV

1DPH

0LND<DPDPRWR.LKRX.X]H+RPHWRZQ

1DUD3UHIHFWXUH

2ND\DPD3UHIHFWXUH$VVLJQHGGHSDUWPHQW3XUFKDVLQJ'LYLVLRQ*HQHUDO$IIDLUV'LYLVLRQ'LVFXVWKURZ-DYHOLQ&RPSHWLQJHYHQW

3HUVRQDOEHVW
5HIHUHQFH-DSDQUHFRUG &RPPHQWV嵣ۜ
嵣ۜ , ZDQW WR JURZ ERWK DW ZRUN DQG LQ
FRPSHWLWLRQV, ZDQW WR SDUWLFLSDWH LQ WKH 7RN\R 2O\PSLF
*DPHV DQG UHWXUQ WKH IDYRU RI WKH &RPSDQ\KLULQJPH嵣ۜ
WKLQKLVWRU\RI-DSDQ 嵣ۜ , ZDQW WR SDUWLFLSDWH LQ WKH 7RN\R
2O\PSLF *DPHV DQG ZLQ D PHGDO , ZLOO
PDNH HYHU\ HIIRUW WR PDLQWDLQ D JRRGEDODQFH EHWZHHQ ZRUN DQG FRPSHWLWLRQ
DQG DFKLHYH D -DSDQ UHFRUG WKUHH \HDUVIURPQRZ

 $VRI-XO\ $FWLYLWLHVRIWKHWUDFN ILHOGFOXE
.21'27(&bV WUDFN  ILHOG WHDP SDUWLFLSDWHG LQ WKH2VDND &DVWOH UHOD\ PDUDWKRQ RQ 0DUFK  
:H ZLOO FRQWLQXH WR HQFRXUDJH HPSOR\HHV WR
SURPRWHJRRGKHDOWK$FWLYLWLHVRIWKHEDVHEDOOFOXE$ERXW  HPSOR\HHV PDLQO\ LQ WKH .DQVDL DUHDEHORQJ WR RXU EDVHEDOO FOXE 2XU WHDP FRPSHWHV LQ
WKH 'DLNHQNL %DVHEDOO &KDPSLRQVKLS RUJDQL]HG E\2VDND &RQVWUXFWLRQ 0DFKLQHU\ $VVRFLDWLRQ  HYHU\\HDULQIDOO

   .21'27(&5(3257

5HODWHGOLQNV
7R.21'27(&ZHEVLWH 

6833/(0(17*29(51$1&(

62&,$/

(19,5210(17 KONDOTEC LOVES SPORTS),1$1&,$/'$7$

.21'27(& 9,6,21

:($5(.21'27(& \HHV&XUUHQWO\WZRHPSOR\HHVDUHSUDFWLFLQJGDLO\ZLWKWKHDLPRISDUWLFLSDWLQJLQWKH7RN\R2O\PSLF
FWLFHWRJHWKHUE\GHPRQVWUDWLQJWHDPZRUNDQGSDUWLFLSDWHLQFRPSHWLWLRQV  .21'27(&5(3257  (6*(6*%DVLF3ROLF\(QYLURQPHQW6RFLDO*RYHUQDQFH* 29(51$1&(%DVLFFRQFHSW .21'27(& UHFRJQL]HV WKDW VWUHQJWKHQLQJ DQG IRU UHLQIRUFLQJ RXU FRPSOLDQFH DQG LQWHUQDO DXGLWHQKDQFLQJ FRUSRUDWH JRYHUQDQFH WKURXJK V\VWHPV FRQGXFWLQJ WLPHO\ GLVFORVXUH RI
 LQFUHDVLQJ VRXQGQHVV WUDQVSDUHQF\ DQG PDQDJHPHQW LQIRUPDWLRQ RSHUDWLQJ UHVXOWV DQG HIILFLHQF\ RI PDQDJHPHQW DQG PD[LPL]LQJ RWKHU SLHFHV RI LQIRUPDWLRQ YLD RXU ZHEVLWH DQG FRUSRUDWH YDOXH LV RQH RI WKH PRVW LPSRUWDQW RWKHU PHDQV DQG VWUHQJWKHQLQJ IXQFWLRQV IRUPDQDJHPHQWREMHFWLYHV7RUHDOL]HWKLVREMHFWLYH VSHHG\ GHFLVLRQPDNLQJ DQG PDQDJHPHQW
 RXU EDVLF FRQFHSW RI FRUSRUDWH JRYHUQDQFH FDOOV VXSHUYLVLRQ&RUSRUDWH*RYHUQDQFH‫&ٹ‬RUSRUDWHJRYHUQDQFHVWUXFWXUHVXPPDU\WDEOH
&RPSDQ\ZLWKDQ$XGLW 6XSHUYLVRU\7\SHRIRUJDQL]DWLRQDOGHVLJQ%RDUG
 1XPEHURIGLUHFWRUV LQFOXGLQJWKHQXPEHU  
 RIRXWVLGHGLUHFWRUV  1XPEHURIDXGLW VXSHUYLVRU\ERDUG
PHPEHUV LQFOXGLQJWKHQXPEHURIRXWVLGH  DXGLW VXSHUYLVRU\ERDUGPHPEHUV \HDU 7HUPRIRIILFHRIGLUHFWRUV$GRSWLRQRIH[HFXWLYHRIILFHUV\VWHP<HV3HUIRUPDQFHEDVHGVWRFNFRPSHQVDWLRQ,QFHQWLYHUHPXQHUDWLRQSODQ $FFRXQWLQJ$XGLWRU'HORLWWH7RXFKH7RKPDWVX//&‫ٹ‬5HDVRQVIRUDGRSWLQJWKHFXUUHQWFRUSRUDWHJRYHUQDQFHV\VWHP.21'27(& EHOLHYHV WKDW SXWWLQJ LQ SODFH DQ DFFRXQWLQJDQGODZVDQGFDUULHVRXWVXSHUYLVLRQ $XGLW  6XSHUYLVRU\ %RDUG DQG KDYLQJ DQ DXGLW IURPDQREMHFWLYHDQGIDLUSRLQWRIYLHZ V\VWHP ZKHUH $XGLW  6XSHUYLVRU\ %RDUG 7KH %RDUG RI 'LUHFWRUV KROGV D UHJXODU PRQWKO\
0HPEHUVVXSHUYLVHPDQDJHPHQWLVHIIHFWLYHDQG
KHQFH RSHUDWHV DV D FRPSDQ\ ZLWK DQ $XGLW 
6XSHUYLVRU\%RDUGV\VWHP
7KH $XGLW  6XSHUYLVRU\ %RDUG FRPSULVHV WKUHH
$XGLW  6XSHUYLVRU\ %RDUG 0HPEHUV LQFOXGLQJ
RQHIXOOWLPH$XGLW 6XSHUYLVRU\%RDUG0HPEHUDQG WZR SDUWWLPH $XGLW  6XSHUYLVRU\ %RDUG
0HPEHUV 2XWVLGH $XGLW  6XSHUYLVRU\ %RDUG
0HPEHU  ZLWK VSHFLDOLVW NQRZOHGJH RQ ILQDQFH

   .21'27(&5(3257

PHHWLQJ DV ZHOO DV DQ H[WUDRUGLQDU\ PHHWLQJZKHQHYHU QHFHVVDU\ SURPRWHV HIILFLHQF\ RI
GHFLVLRQPDNLQJ IRU WKH H[HFXWLRQ RI LPSRUWDQW
EXVLQHVV DFWLYLWLHV DQG UHLQIRUFHPHQW RI WKHVXSHUYLVLRQ IXQFWLRQ DQG HOHFWV WZR 2XWVLGH
'LUHFWRUV IRU VXSHUYLVLQJ WKH VWDWXV RI HIILFLHQF\DQG
ODZIXOQHVV
IURP
DQ
LQGHSHQGHQWSHUVSHFWLYH

5HODWHGOLQNV
7R.21'27(&ZHEVLWH +20(&RPSDQ\&RUSRUDWH*RYHUQDQFH

:($5(.21'27(& ‫&ٹ‬RUSRUDWHJRYHUQDQFHV\VWHP .21'27(&bVFRUSRUDWHJRYHUQDQFHV\VWHPLVVKRZQLQWKHGLDJUDPEHORZ*HQHUDOPHHWLQJRIVKDUHKROGHUV

ઙ਌੕ভ



৭ભ‫ੰ؞‬ભ$SSRLQWPHQW'LVPLVVDO৭ભ‫ੰ؞‬ભ$SSRLQWPHQW'LVPLVVDO%RDUGRI'LUHFWRUV਄ഁ૽ভ



'LUHFWRUV਄ഁ૽੡,QFOXGLQJ2XWVLGH'LUHFWRUV‫ؙؙ‬अठ঺ਗ਄ഁ૽‫ڮ‬੡

$SSRLQWPHQW6XSHUYLVLRQ‫ؙ‬৭৒‫؞‬૰୚

'HWHUPLQD
WLRQRI$XGLW┘ᰝ&RRSHUDWLRQ 2XWVLGH([HFXWLYHPHPEHUVb&RXQFLO㐃ᦠ䠄♫እᙺဨ᠓ヰ఍䠅 

$XGLW 6XSHUYLVRU\%RDUG0HPEHUV૰ਪ૽‫گ‬੡,QFOXGLQJ2XWVLGH$XGLW ‫ؙؙ‬अठ঺ਗ૰ਪ૽‫ڮ‬੡
6XSHUYLVRU\%RDUG0HPEHUV$SSRLQWPHQW'LV৭ભ‫ੰ؞‬ભ
PLVVDO&RRSHUDWLRQ㐃ᦠ

5HSUHVHQWDWLYH'LUHFWRU
৻਀਄ഁ૽



$XGLW ૰ਪ૽ভ
6XSHUYLVRU\%RDUG ৮੧ৠ৒SURSRVDOV

.21'27(& 9,6,21&RRSHUDWLRQ㐃ᦠ&RPSOLDQFH 5LVN॥থউছॖ॔থ५‫؞‬
0DQDJHPHQW&RPPLWWHHজ५ॡଵ৶੻৩ভ,QWHUQDO$XGLW'HSDUWPHQW૰ਪ஼㐃ᦠ
&RRSHUDWLRQ఍ィ┘ᰝ$FFRXQWLQJ$FFRXQWLQJ$XGLWRUভੑ૰ਪযDXGLW

‫ؙؙؙؙؙ‬৔৖૰ਪ,QWHUQDODXGLW),1$1&,$/'$7$

ੰભ
'LVPLVVDO







‫ٹ‬.21'27(&bVPDQDJLQJRUJDQ %RDUGRI'LUHFWRUV .21'27(& KROGV D PHHWLQJ RI WKH %RDUG RI







'LUHFWRUV DW OHDVW RQFH D PRQWK DQG FRPSOLHVZLWK WKH SROLF\ RI DGGUHVVLQJ DOO PDWWHUVSURYLGHG LQ WKH %RDUG RI 'LUHFWRUVb 5HJXODWLRQV
DQGWKRVHFRUUHVSRQGLQJWRDJHQGDLWHPVWRWKH
%RDUG RI 'LUHFWRUV LQ PDNLQJ GHFLVLRQV RQ
LPSRUWDQWPDWWHUV,Q DGGLWLRQ WKH %RDUG RI 'LUHFWRUV UHFHLYHVUHSRUWV RQ WKH VWDWXV RI EXVLQHVV H[HFXWLRQ RI
.21'27(& DQG LWV VXEVLGLDULHV IURP HDFK RI
WKHUHVSHFWLYHGLUHFWRUVRQDSHULRGLFEDVLVDQG
FDUULHV RXW VXSHUYLVLRQ HWF RQ WKHUHDVRQDEOHQHVV DQG HIILFLHQF\ RI EXVLQHVV
H[HFXWLRQ.21'27(& FRQGXFWV WKH %RDUG RI 'LUHFWRUV
DVVHVVPHQW TXHVWLRQQDLUH EDVHG RQ VHOIDVVHVVPHQWVPDGHE\DOO'LUHFWRUVDQG$XGLW 
6XSHUYLVRU\ %RDUG 0HPEHUV RQFH D \HDU 7KH%RDUGRI'LUHFWRUVGHOLEHUDWHVRQDQGFRQVLGHUV
WKH UHVXOWV RI WKH TXHVWLRQQDLUH DQG PDNHV
QHFHVVDU\LPSURYHPHQWVWRVHFXUHHIIHFWLYHQHVV DQG LQFUHDVH WKH TXDOLW\ RI WKH%RDUGRI'LUHFWRUVDVDZKROH

62&,$/*29(51$1&(%XVLQHVVGLYLVLRQ
஦
ᴗ 㒊 㛛



 ([HFXWLYH2IILFHUV

 .21'27(& DGRSWV DQ H[HFXWLYH RIILFHU V\VWHP

DQG ILYH ([HFXWLYH 2IILFHUV DQG 'LUHFWRUV LQ

FKDUJH RI EXVLQHVV RSHUDWLRQV SURPRWH VSHHG\
EXVLQHVVH[HFXWLRQ  .21'27(&5(3257  

6833/(0(17(19,5210(17



(6*
(6*%DVLF3ROLF\(QYLURQPHQW6RFLDO*RYHUQDQFH
2XWVLGH'LUHFWRUV
.21'27(& DSSRLQWV WZR 2XWVLGH 'LUHFWRUV RQH ODZ\HU DQG RQH ODZ VFKRRO SURIHVVRU  ZKR VXSHUYLVHPDQDJHPHQW DQG RIIHU DGYLFH IURP DQ REMHFWLYH SRLQW RI YLHZ LQ FRQVLGHUDWLRQ RI WKH FRUSRUDWH EXVLQHVVFRPPXQLW\RQWKHZKROHLQFOXGLQJODZVDQGUHJXODWLRQVLQDQHIIRUWWRLQFUHDVHWUDQVSDUHQF\RIWKH%RDUG
RI'LUHFWRUVDQGUHLQIRUFHWKHVXSHUYLVLRQIXQFWLRQ
+20(&203$1<([HFXWLYHPHPEHUV$XGLW 6XSHUYLVRU\%RDUG2XWVLGH$XGLW 6XSHUYLVRU\%RDUG0HPEHUV
.21'27(& DGRSWV WKH $XGLW  6XSHUYLVRU\ %RDUG V\VWHP 7ZR RI WKH WKUHH $XGLW  6XSHUYLVRU\ %RDUG
0HPEHUVDUH2XWVLGH$XGLW 6XSHUYLVRU\%RDUG0HPEHUV RQHODZ\HUDQGRQH&3$ ZKRH[FKDQJHRSLQLRQVRQDXGLWPHWKRGVDQGDXGLWVWDQGDUGVIURPWKHLUSURIHVVLRQDOSRLQWVRIYLHZDWWKHPHHWLQJRIWKH$XGLW 
6XSHUYLVRU\%RDUGZKLFKLVKHOGDWOHDVWRQFHDPRQWKLQRUGHUWRLPSURYHWKHDSSURSULDWHQHVVDQGHIILFLHQF\
RIWKHDXGLW,QWKLVZD\ZHVWULYHWRHQKDQFHDQGUHLQIRUFHRXUDXGLWV\VWHP)XUWKHUPRUH ZLWK D YLHZ WR LPSURYLQJ WKH IXQFWLRQ RI $XGLW  6XSHUYLVRU\ %RDUG 0HPEHUV WKH 0HPEHUVUHFHLYHDUHSRUWRQWKHUHVXOWVRIWKHDFFRXQWLQJDXGLWIURPWKH$FFRXQWLQJ$XGLWRUDWHDFKILQDQFLDOFORVLQJ
,IQHHGHG$XGLW 6XSHUYLVRU\%RDUG0HPEHUVDFFRPSDQ\WKH$FFRXQWLQJ$XGLWRULQWKHDXGLWRIDQRIILFH
H[FKDQJH LQIRUPDWLRQ DQG RSLQLRQV DQG SURPRWH FORVH FRRSHUDWLRQ LQ DQ HIIRUW WR LPSURYH WKHDSSURSULDWHQHVVDQGHIILFLHQF\RIDXGLWV,QWHUQDODXGLW
2XU,QWHUQDO$XGLW'HSDUWPHQWLVSODFHGDVDXQLWGLUHFWO\XQGHUWKH3UHVLGHQW7KHUHDUHWZRIXOOWLPHVWDIIPHPEHUV 7KHVH LQWHUQDO DXGLWRUV DXGLW WKH VWDWXV RI FRPSOLDQFH ZLWK ODZV UHJXODWLRQV DQG LQWHUQDO UXOHVDQG WKH DSSURSULDWHQHVV DQG HIILFLHQF\ RI EXVLQHVV SURFHVVHV HWF RI HDFK GLYLVLRQ SURYLGH JXLGDQFH IRULPSURYHPHQWDQGSHUIRUPIROORZXSV,Q DGGLWLRQ WKH\ FRQGXFW DXGLWV WR FRQWLQXRXVO\ YHULI\ ZKHWKHU WKH V\VWHP WR HQVXUH WKH UHOLDELOLW\ RI
ILQDQFLDOUHSRUWLQJIXQFWLRQVDSSURSULDWHO\DQGPDNHVFRUUHFWLRQVZKHUHQHFHVVDU\$FFRXQWLQJ$XGLWRU
.21'27(& KDV DSSRLQWHG 'HORLWWH 7RXFKH 7RKPDWVX //& DV WKH $FFRXQWLQJ $XGLWRU DQG HVWDEOLVKHV DQ
HQYLURQPHQWLQZKLFKWKH$FFRXQWLQJ$XGLWRULVDEOHWRSHUIRUPDXGLWVIURPDIDLUDQGXQELDVHGSHUVSHFWLYH
E\SURYLGLQJWKHDXGLWRUDFFXUDWHPDQDJHPHQWLQIRUPDWLRQLQDWLPHO\PDQQHU&RPSOLDQFH 5LVN0DQDJHPHQW&RPPLWWHH 

7KH &RPSOLDQFH  5LVN 0DQDJHPHQW &RPPLWWHH OHG E\ WKH 3UHVLGHQW DV WKH FRPPLWWHH FKDLUPDQ LV LQ
SODFH
7KH &RPSOLDQFH  5LVN 0DQDJHPHQW &RPPLWWHH SURPRWHV WKH GLVVHPLQDWLRQ RI DZDUHQHVV WR FRPSO\ ZLWKUHOHYDQW ODZV UHJXODWLRQV FRUSRUDWH HWKLFDO VWDQGDUGV DQG LQWHUQDO UHJXODWLRQV DPRQJ DOO HPSOR\HHV DQGFUHDWHV D VWUXFWXUH WR SUHYHQW VFDQGDOV DQG RWKHU SUREOHPV E\ GHYHORSLQJ SODQV DQG PHDVXUHV RQ
FRPSOLDQFH LQFOXGLQJ HGXFDWLRQ DQG JXLGDQFH IRU SUDFWLFLQJ FRPSOLDQFH 7KH &RPPLWWHH DOVR FROOHFWVLQIRUPDWLRQ RQ YDULRXV ULVNV VXUURXQGLQJ .21'27(& DQG LWV VXEVLGLDULHV DQG DQDO\]HV WKH LQIRUPDWLRQ WR
GHYHORSVSHFLILFSUHYHQWLYHPHDVXUHV,WDOVRSXWVLQSODFHDVWUXFWXUHWRPLQLPL]HWKHLPSDFWRIULVNVVKRXOGDQ\VXFKULVNEHFRPHVDSSDUHQWLQDQHIIRUWWRUHLQIRUFHWKHFRUSRUDWHSODWIRUP
2XWVLGH([HFXWLYHPHPEHUVb&RXQFLO
7KH 2XWVLGH ([HFXWLYH PHPEHUVb &RXQFLO FRPSULVLQJ 2XWVLGH 'LUHFWRUV DQG 2XWVLGH $XGLW  6XSHUYLVRU\
0HPEHUVKDVEHHQHVWDEOLVKHG7KH&RXQFLOPHHWVSHULRGLFDOO\WRSURPRWHWKHH[FKDQJHRIRSLQLRQVDPRQJRXWVLGH([HFXWLYHPHPEHUV   .21'27(&5(3257

5HODWHGOLQNV
7R.21'27(&ZHEVLWH 

+20(&RPSDQ\([HFXWLYH0HPEHUV

6HQLRU([HFXWLYH
'LUHFWRU

7RPR\D$QGR

*HQHUDO0DQDJHU0DQDJHPHQW+HDGTXDUWHUVDQG0DQDJHU
*HQHUDO$IIDLUV'LYLVLRQ'LUHFWRU6DQZD'HQ]DL&R/WG
'LUHFWRU&+82+*,.(1&R/WG([HFXWLYH
'LUHFWRU

6KLJHUX+LUDWD

*HQHUDO0DQDJHU6DOHV+HDGTXDUWHUV([HFXWLYH
'LUHFWRU

+DUXR0L\D

*HQHUDO0DQDJHU0DQXIDFWXULQJ+HDGTXDUWHUVDQG0DQDJHU.DQWR)DFWRU\'LUHFWRU

0DVDKLNR<DQR

0DQDJHU'HYHORSPHQW6DOHV'LYLVLRQ0DQDJHU+RPHFHQWHU*URXSDQG0DQDJHU(FRPPHUFH*URXS'LUHFWRU

<DVXKLUR7RNL

0DQDJHU3XUFKDVLQJ'LYLVLRQ'LUHFWRU

+LUR\XNL<DGD

0DQDJHU:HVWHUQ-DSDQ6DOHV'LYLVLRQ'LUHFWRU

$NLUD7DNDJL

0DQDJHU.\XVKX)DFWRU\

2XWVLGH'LUHFWRU

0LFKLNR.DQDL$WWRUQH\DWODZ
2XWVLGH$XGLW 6XSHUYLVRU\%RDUG0HPEHU86-&R/WG 
2XWVLGH$XGLW 6XSHUYLVRU\%RDUG0HPEHU6DQN\R6HLNR&R/WG
2XWVLGH'LUHFWRU,'(&&25325$7,21

‫س‬



2XWVLGH'LUHFWRU

0DVDVKL<DPDWR

3URIHVVRUDW*UDGXDWH6FKRRORI/DZ.DQVDL8QLYHUVLW\

‫س‬

‫ص‬

)XOOWLPH$XGLW6XSHUYLVRU\%RDUG0HPEHU

7HWVXR.DZDVH$XGLW 6XSHUYLVRU\%RDUG
0HPEHU6DQZD'HQ]DL&R/WG
$XGLW 6XSHUYLVRU\%RDUG
0HPEHU&+82+*,.(1&R/WG

2XWVLGH$XGLW 
6XSHUYLVRU\%RDUG0HPEHU<RVKLQREX0XUDWVXML$WWRUQH\DWODZ

‫س‬



0DVDKDUX
1DNDJDZD

&3$
2XWVLGH$XGLW 6XSHUYLVRU\%RDUG0HPEHU1DNDPXUD&KRXNRX&R/WG
2XWVLGH$XGLW 6XSHUYLVRU\%RDUG0HPEHU*0%
&25325$7,21

‫س‬



  .21'27(&5(3257  *29(51$1&(6833/(0(17

2XWVLGH$XGLW 
6XSHUYLVRU\%RDUG0HPEHU

.21'27(& 9,6,21

.DWVXKLNR.RQGR

5HSUHVHQWDWLYH'LUHFWRURI7RZD
.RVDQ&RUS
5HSUHVHQWDWLYH'LUHFWRURI7RWR
.RVDQ,1&

3UHVLGHQWDQG
5HSUHVHQWDWLYH
'LUHFWRU

62&,$/

1DPH

7LWOH

),1$1&,$/'$7$

1XPEHURIVKDUHVKHOG7KRXVDQGVKDUHV (19,5210(17,QGHSHQGHQW
RIILFHU$UHDRIUHVSRQVLELOLW\DQG
LPSRUWDQWFRQFXUUHQWSRVLWLRQV:($5(.21'27(& ‫[(ٹ‬HFXWLYHPHPEHUV$VRI-XO\

(6*(6*%DVLF3ROLF\(QYLURQPHQW6RFLDO*RYHUQDQFH

‫'ٹ‬LUHFWRUVDQG$XGLW 6XSHUYLVRU\%RDUG0HPEHUV
7HUPVRI([HFXWLYHPHPEHUV
.21'27(& DSSRLQWV FDQGLGDWHV IRU 'LUHFWRUV E\ FRQVLGHULQJ LQGLYLGXDOV ZKR IXOILOO UHVSHFWLYH VWDWXWRU\UHTXLUHPHQWV ZKR DUH H[FHOOHQW ERWK LQ WHUPV RI SHUVRQDOLW\ DQG LQVLJKW ZKR FDQ FDUU\ RXW WKHLU
SURIHVVLRQDO UHVSRQVLELOLWLHV DQG ZKR DUH FDSDEOH RI PDNLQJ DFFXUDWH DQG WLPHO\ GHFLVLRQV DQG RI
FRRSHUDWLQJDQGZRUNLQJZLWKDQGFRYHULQJHDFKIXQFWLRQDQGGLYLVLRQRIWKH&RPSDQ\6XFKLQGLYLGXDOVDUH
UHFRPPHQGHG E\ WKH 3UHVLGHQW RU WKH %RDUG RI 'LUHFWRUV DQG DSSURYHG IRU WKH SRVLWLRQ DW WKH JHQHUDO
PHHWLQJRIVKDUHKROGHUV
.21'27(& DSSRLQWV FDQGLGDWHV IRU $XGLW  6XSHUYLVRU\ %RDUG 0HPEHUV E\ FRQVLGHULQJ LQGLYLGXDOV ZKRKDYHH[SHUWLVHLQOHJDOILQDQFLDODQGDFFRXQWLQJPDWWHUVZKRKROGNQRZOHGJHRQWKHEXVLQHVVDFWLYLWLHVRI
WKH &RPSDQ\ DQG ZKR PDLQWDLQ GLYHUVH SHUVSHFWLYHV FRQFHUQLQJ FRUSRUDWH PDQDJHPHQW LQ D
FRPSUHKHQVLYHPDQQHU6XFKLQGLYLGXDOVDUHUHFRPPHQGHGE\WKH3UHVLGHQWRUWKH%RDUGRI'LUHFWRUVDQG
DUHDSSURYHGIRUWKHSRVLWLRQDWWKHJHQHUDOPHHWLQJRIVKDUHKROGHUV)XUWKHU EDVHG RQ WKH UHFRJQLWLRQ WKDW GLYHUVH YDOXHV DQG SRLQWV RI YLHZ DUH HVVHQWLDO LQ EXVLQHVVPDQDJHPHQWJRLQJIRUZDUG.21'27(&DSSRLQWVDIHPDOHGLUHFWRU
6WDQGDUGVIRU,QGHSHQGHQFHRI2XWVLGH'LUHFWRUV2XWVLGH$XGLW 6XSHUYLVRU\%RDUG0HPEHUV
.21'27(& DSSRLQWV 2XWVLGH 'LUHFWRUV DQG 2XWVLGH $XGLW  6XSHUYLVRU\ %RDUG 0HPEHUV E\ FRQVLGHULQJLQGLYLGXDOVZKRIXOILOOWKHUHTXLUHPHQWVXQGHUWKH&RPSDQLHV$FWDQGWKHLQGHSHQGHQFHVWDQGDUGVVHWIRUWKE\WKH7RN\R6WRFN([FKDQJH7KH&RPSDQ\HOHFWVLQGLYLGXDOVZKRDUHFDSDEOHRIFDUU\LQJRXWVXSHUYLVLRQ
DQG JLYLQJ DGYLFH EDVHG RQ DEXQGDQW H[SHULHQFH DQG LQVLJKWV DV 2XWVLGH 'LUHFWRUV DQG HOHFWV LQGLYLGXDOVZKRFDQFRQGXFWIDLUDXGLWVRIWKHPDQDJHPHQWVWDWXVDV2XWVLGH$XGLW 6XSHUYLVRU\%RDUG0HPEHUV
.21'27(& UHJLVWHUV DOO IRXU 2XWVLGH 'LUHFWRUV DQG 2XWVLGH $XGLW  6XSHUYLVRU\ %RDUG 0HPEHUV DV
LQGHSHQGHQW([HFXWLYHPHPEHUVEDVHGRQWKHUXOHVRIWKH7RN\R6WRFN([FKDQJHZLWKWKHVDLGH[FKDQJH
6WDWXVRIDWWHQGDQFHE\2XWVLGH'LUHFWRUV2XWVLGH$XGLW 6XSHUYLVRU\%RDUG0HPEHUV
WKWHUP $SULOWR0DUFK %RDUGRI'LUHFWRUV$XGLW 6XSHUYLVRU\%RDUG
3RVLWLRQ
1DPHERDUGPHHWLQJV ERDUGPHHWLQJV $WWHQGHGPHHWLQJV
0DVDUX7RNXGD‫ص‬ 
 2XWVLGH'LUHFWRUV$WWHQGHGPHHWLQJV0LFKLNR.DQDL‫ص‬ <RVKLQREX$WWHQGHGPHHWLQJV
$WWHQGHGPHHWLQJV
2XWVLGH$XGLW 
0XUDWVXML
 
 
6XSHUYLVRU\%RDUG
0DVDKDUX
$WWHQGHGPHHWLQJV
$WWHQGHGPHHWLQJV
0HPEHUV1DNDJDZD 
 

   .21'27(&5(3257

‫'ٹ‬HVFULSWLRQVEDVHGRQWKH&RUSRUDWH*RYHUQDQFH&RGH
$QDO\VLVDQGDVVHVVPHQWRIHIIHFWLYHQHVVRIWKHHQWLUH%RDUGRI'LUHFWRUV
.21'27(&PDNHV GHFLVLRQV RQ LPSRUWDQW PDWWHUV DW WKH UHJXODU PHHWLQJ RI WKH %RDUG RI 'LUHFWRUV KHOG HYHU\ PRQWK EDVHG RQ GLVFXVVLRQV E\ DWWHQGHHV LQFOXGLQJ 2XWVLGH 'LUHFWRUV DQG 2XWVLGH $XGLW  6XSHUYLVRU\ %RDUG
0HPEHUV ZKR VWDWH WKHLU RSLQLRQV ,Q WKLV ZD\ ZH PDNH DQ HIIRUW WR KHLJKWHQ WKH HIIHFWLYHQHVV RI WKH %RDUG RI
 'LUHFWRUV
2QFHD\HDUZHFRQGXFWDQDQDO\VLVDQGDVVHVVPHQWRIWKHHIIHFWLYHQHVVRIWKHHQWLUH%RDUGRI'LUHFWRUV ,Q $SULO  ZH PDGH DQ DVVHVVPHQW RI WKH HIIHFWLYHQHVV RI WKH %RDUG RI 'LUHFWRUV :H GLVFXVVHG DQG PDGHFRQVLGHUDWLRQVRQWKHUHVXOWVRIWKHDVVHVVPHQWDWWKHPHHWLQJRIWKH%RDUGRI'LUHFWRUVLQ0D\

3HULRG$SULOWR0D\
0HWKRG$QRQ\PRXVVHOIDVVHVVPHQWE\DOO'LUHFWRUVDQG$XGLW 6XSHUYLVRU\%RDUG0HPEHUV LQFOXGLQJRXWVLGH ([HFXWLYHPHPEHUV $VVHVVPHQWLWHPV6WUXFWXUHDQGRSHUDWLRQRIWKH%RDUGRI'LUHFWRUVGHOLEHUDWLRQJRYHUQDQFHV\VWHPJHQHUDO:($5(.21'27(& +20(&RPSDQ\([HFXWLYH0HPEHUV

.21'27(& 9,6,21

5HODWHGOLQNV
7R.21'27(&ZHEVLWH 

7UDLQLQJSROLF\IRU'LUHFWRUVDQG$XGLW 6XSHUYLVRU\%RDUG0HPEHUV
.21'27(& RIIHUV RSSRUWXQLWLHV IRU 'LUHFWRUV DQG $XGLW  6XSHUYLVRU\ %RDUG 0HPEHUV WR SDUWLFLSDWH LQ YDULRXV  
WUDLQLQJSURJUDPVLQFOXGLQJWUDLQLQJVHVVLRQVDQGOHFWXUHVE\LQWHUQDODQGH[WHUQDOLQVWUXFWRUVH[WHUQDOVHPLQDUV DQG ZHEEDVHG VHPLQDUV LQ DQ HIIRUW WR KDYH ([HFXWLYH PHPEHUV JDLQ QHFHVVDU\ NQRZOHGJH DQGXQGHUVWDQGSURPRWHGXWLHVDQGUHVSRQVLELOLWLHV(19,5210(176XPPDU\RIUHVXOWV :KLOHDOO([HFXWLYHPHPEHUVPDGHWKHDVVHVVPHQWWKDWWKHHIIHFWLYHQHVVRIWKH%RDUGRI'LUHFWRUV RQ WKH ZKROH ZDV VHFXUH WKHUH ZHUH FRPPHQWV VXJJHVWLQJ WKDW WKH PDWHULDOV
IRU WKH ERDUG PHHWLQJ VKRXOG EH GLVWULEXWHG IXUWKHU LQ DGYDQFH VR WKDW PDWWHUV FDQ EH
VXIILFLHQWO\ UHYLHZHG DQG WKDW IXUWKHU WUDLQLQJ SURJUDPV VXLWDEOH IRU ERDUG PHPEHUVVKRXOGEHLPSOHPHQWHG
%DVHG RQ WKHVH DVVHVVPHQW UHVXOWV WKH &RPSDQ\ KDV GHFLGHG WR GLVWULEXWH VXSSRUWLQJPDWHULDOVZHOOLQDGYDQFHWRVHFXUHDGHTXDWHWLPHIRU2XWVLGH'LUHFWRUVDQG2XWVLGH$XGLW6XSHUYLVRU\%RDUG0HPEHUVWRUHYLHZWKHPDWHULDOV
:H ZLOO FRQWLQXH WR PDNH LPSURYHPHQWV WR HQVXUH WKH HIIHFWLYHQHVV DQG HQKDQFH WKH
TXDOLW\RIWKH%RDUGRI'LUHFWRUV

),1$1&,$/'$7$

 DVVHVVPHQWRIWKH%RDUGRI'LUHFWRUV([HUFLVHRIYRWLQJULJKWVRQFURVVKHOGVKDUHV

6833/(0(17

UHVSHFWV WKH PDQDJHPHQW SROLF\ VWUDWHJLHV HWF RI LQYHVWHH FRPSDQLHV PDNHV FRPSUHKHQVLYH .21'27(&
MXGJPHQWRQZKHWKHUWKHVKDUHKROGLQJFRQWULEXWHVWRVXVWDLQDEOHJURZWKDQGPHGLXPWRORQJFRUSRUDWHYDOXHDQG
 H[HUFLVHVYRWLQJULJKWV

*29(51$1&(3ROLF\RQFURVVVKDUHKROGLQJ.21'27(&PDLQWDLQVFURVVKHOGVKDUHVIRUWKHSXUSRVHRIFRQWULEXWLQJWRWKHLQFUHDVHRIFRUSRUDWHYDOXHLQWKH
PHGLXPWRORQJWHUPE\PDLQWDLQLQJDQGUHLQIRUFLQJUHODWLRQVKLSVZLWKLPSRUWDQWEXVLQHVVSDUWQHUV9HULILFDWLRQRQFURVVKHOGVKDUHV
 (DFK \HDU .21'27(&bV %RDUG RI 'LUHFWRUV YHULILHV WKH UHDVRQDEOHQHVV DQG QHFHVVLW\ RI FURVVKHOG VKDUHV LQ
FRQVLGHUDWLRQRIWKHUHWXUQDQGULVNDVVRFLDWHGZLWKVKDUHKROGLQJIURPWKHPHGLXPWRORQJWHUPSHUVSHFWLYH $VRI0DUFKZHKHOGLVVXHVRIFURVVKHOGVKDUHVZRUWKPLOOLRQ\HQLQERRNYDOXHDQGPLOOLRQ\HQ
LQPDUNHWYDOXHHTXLYDOHQWWRDQGUHVSHFWLYHO\RIWRWDODVVHWVRIPLOOLRQ\HQ

62&,$/

3ROLF\FRQFHUQLQJFURVVKHOGVKDUHV  .21'27(&5(3257  (6*(6*%DVLF3ROLF\(QYLURQPHQW6RFLDO*RYHUQDQFH

 %DVLFSROLF\FRQFHUQLQJFRQVWUXFWLYHGLDORJXHVZLWKVKDUHKROGHUV .21'27(&SURPRWHVFRQVWUXFWLYHGLDORJXHVZLWKVKDUHKROGHUV WKURXJK KROGLQJ EULHILQJV IRU
 LQGLYLGXDOLQYHVWRUVDQGILQDQFLDOUHVXOWVEULHILQJV LQDGGLWLRQWRWKHJHQHUDOPHHWLQJRIVKDUHKROGHUVDQGSDUWLFLSDWLQJLQ,5IDLUV :H DOVR DSSRLQW WKH 'LUHFWRU ZKR PDQDJHV WKH
 *HQHUDO $IIDLUV 'LYLVLRQ UHVSRQVLEOH IRU ,5 DV WKH'LUHFWRU LQ FKDUJH RI ,5 DQG VKDUH LQIRUPDWLRQ ZLWK RWKHU GHSDUWPHQWV WR VWUHQJWKHQ FRRSHUDWLRQ,QRUGHUWRUHIOHFWWKHRSLQLRQVRIVKDUHKROGHUVRQ PDQDJHPHQW ZKHQ LPSRUWDQW IHHGEDFN JLYHQ

IURP DQ REMHFWLYH YLHZSRLQW DULVHV ZH PDNH DQ
HIIRUW WR UHSRUW WKH PDWWHU WR WKH %RDUG RI
'LUHFWRUVDVQHHGHG
,Q DGGLWLRQ .21'27(& KDV SXW LQ SODFH LWV ,5
3ROLF\ ZKLFK GHILQHV WKH TXLHW SHULRG DQG RWKHUPDWWHUV DQG  LWV ,5 ,QWHUQDO ,QIRUPDWLRQ0DQDJHPHQW 5HJXODWLRQV ZKLFK VHW IRUWK UXOHVRQ FRPPXQLFDWLQJ LPSRUWDQW IDFWV DQG LQWHUQDO
LQIRUPDWLRQDQGSHUIRUPVDFFRUGLQJO\LQ
PDQDJLQJLQIRUPDWLRQ‫یٹ‬KLVWOHEORZLQJV\VWHP
.21'27(& KDV IRUPXODWHG LQWHUQDO UHJXODWLRQVRQZKLVWOHEORZLQJDQGSXWLQSODFHWZRSRLQWVRI
FRQWDFW IRU ZKLVWOHEORZLQJ LQVLGH DQG RXWVLGHWKH FRPSDQ\ 7KH &RPSDQ\bV ZKLVWOHEORZLQJV\VWHPLVVXFKWKDWZKHQZKLVWOHEORZLQJRFFXUVWKH0DQDJHURI*HQHUDO$IIDLUV'LYLVLRQZKLFKLV
WKH LQWHUQDO SRLQW RI FRQWDFW IRUZKLVWOHEORZLQJUHSRUWV WKH PDWWHU WR WKH 3UHVLGHQW *HQHUDO
0DQDJHU RI 0DQDJHPHQW +HDGTXDUWHUV 2XWVLGH
'LUHFWRUV DQG $XGLW 6XSHUYLVRU\ %RDUG
0HPEHUV UHTXHVWV WKDW WKH UHVSRQVLEOH
GHSDUWPHQW LQYHVWLJDWHV WKH PDWWHU DQGSURSRVHVDQGQRWLILHVWKHPHDVXUHIRUUHVSRQVH
7KH VWDWXV RI RSHUDWLRQ IRU ZKLVWOHEORZLQJ LV
UHSRUWHG DW WKH &RPSOLDQFH  5LVN 0DQDJHPHQW&RPPLWWHH DQG WKH %RDUG RI 'LUHFWRUV RQFH D
\HDU DQG WKH %RDUG RI 'LUHFWRUV VXSHUYLVHV WKHVWDWXVRIRSHUDWLRQ
:H DOVR PDLQWDLQ LQWHUQDO UHJXODWLRQV DQG D
V\VWHP WR HQVXUH WKDW ZKLVWOHEORZHUV DUH QRWWUHDWHGXQIDLUO\
7KHUH ZHUH QR FDVHV RI ZKLVWOHEORZLQJ LQ WKH\HDUHQGHG0DUFK


:KLVWOHEORZLQJV\VWHPIORZ






2FFXUUHQFHRILQWHUQDOZKLVWOHEORZLQJPDWWHU
5HSRUW&RQVXOW

0DQDJHURI*HQHUDO$IIDLUV'LYLVLRQ

5HSRUW

2XWVLGHVSHFLDOLVW

5HSRUW
5HTXHVW5HSRUWWRWKH3UHVLGHQW*HQHUDO0DQDJHURI0DQDJHPHQW+HDGTXDUWHUV2XWVLGH
'LUHFWRUVDQG$XGLW 6XSHUYLVRU\%RDUG0HPEHUV+ROGFRPPLWWHHPHHWLQJDVQHHGHG 
5HTXHVW,QWHUYLHZLQYHVWLJDWLRQRIUHVSRQVLEOHGHSDUWPHQW&RQVLGHUUHVSRQVHPHDVXUHVDQGQRWLI\WKHUHOHYDQWGHSDUWPHQW)URP0DQDJHURI*HQHUDO$IIDLUV'LYLVLRQ

5HSRUWRQFHD\HDURUDVQHFHVVDU\GHSHQGLQJ
RQWKHGHJUHHRIXUJHQF\DQGLPSRUWDQFH

5HSRUWWR&RPSOLDQFH 5LVN0DQDJHPHQW&RPPLWWHH
DQGWKH%RDUGRI'LUHFWRUV)HHGEDFNWRWKHSHUVRQFRQFHUQHG

   .21'27(&5(3257

5HODWHGOLQNV
7R.21'27(&ZHEVLWH 

5HPXQHUDWLRQRI([HFXWLYHPHPEHUV$PRXQWRISD\PHQW

1XPEHURISHUVRQVSDLG

7KRXVDQG\HQ 

'LUHFWRUVSHUVRQV$XGLW 6XSHUYLVRU\%RDUG0HPEHUVSHUVRQV

7RWDOSHUVRQV











1RWHV  7KH DPRXQW SDLG WR 'LUHFWRUV DQG $XGLW  6XSHUYLVRU\ %RDUG 0HPEHUV LQFOXGHV WKRXVDQG \HQ SDLG WR 2XWVLGH ([HFXWLYH PHPEHUV WZR 2XWVLGH 'LUHFWRUV DQG WZR 2XWVLGH$XGLW 6XSHUYLVRU\%RDUG0HPEHUV  7KH QXPEHU RI 'LUHFWRUV WR ZKRP SD\PHQW LV PDGH LQFOXGHV WZR 'LUHFWRUV ZKR UHWLUHG IURPRIILFHDVRIWKHFRQFOXVLRQRIWKHWKRUGLQDU\JHQHUDOPHHWLQJRIVKDUHKROGHUVKHOGRQ-XQH
 7KH DPRXQW SDLG WR 'LUHFWRUV LQFOXGHV  WKRXVDQG \HQ LQ UHPXQHUDWLRQ FRQFHUQLQJVXEVFULSWLRQULJKWWRVKDUHVDVVWRFNOLQNHGFRPSHQVDWLRQ ,QDGGLWLRQWRWKHDIRUHPHQWLRQHGDPRXQWZHGHFLGHGWRPDNHWKHILQDOSD\PHQWDVVRFLDWHG
ZLWK WKH WHUPLQDWLRQ RI WKH UHWLUHPHQW EHQHILW SODQ IRU ([HFXWLYH PHPEHUV DGGUHVVHG DW WKHQG RUGLQDU\ JHQHUDO PHHWLQJ RI VKDUHKROGHUV KHOG RQ -XQH   DQG EDVHG RQ WKLVUHVROXWLRQZHSDLGUHWLUHPHQWEHQHILWVIRU([HFXWLYHPHPEHUVRIWKRXVDQG\HQWRRQH
'LUHFWRU ZKRUHWLUHG IURP RIILFH DV RI WKH FRQFOXVLRQ RI WKH WK RUGLQDU\ JHQHUDO PHHWLQJ RI
VKDUHKROGHUVKHOGRQ-XQH

.21'27(& 9,6,21

3RVLWLRQ),1$1&,$/'$7$

:($5(.21'27(& ‫ٹ‬5HPXQHUDWLRQRI'LUHFWRUVDQG$XGLW 6XSHUYLVRU\%RDUG0HPEHUV $SULOWR0DUFK 








7KH SROLF\ IRU GHWHUPLQLQJ WKH DPRXQW RI
UHPXQHUDWLRQ RI ([HFXWLYH PHPEHUV HWF LV WR
GHFLGH RQ WKH OLPLW RI WKH WRWDO DPRXQW RI
UHPXQHUDWLRQUHVSHFWLYHO\DWWKHJHQHUDOPHHWLQJ
RI VKDUHKROGHUV 7KH DPRXQW RI UHPXQHUDWLRQ RI
HDFK 'LUHFWRU LV GHWHUPLQHG E\ WKH %RDUG RI
'LUHFWRUV EDVHG RQ D FHUWDLQ VWDQGDUG VHW IRUHDFK WLWOH DQG E\ WDNLQJ LQWR DFFRXQW RSHUDWLQJSHUIRUPDQFH
WUHQGV
7KH
DPRXQW
RIUHPXQHUDWLRQIRUHDFK$XGLW 6XSHUYLVRU\%RDUG
0HPEHULVGHWHUPLQHGEDVHGRQGLVFXVVLRQVZLWK$XGLW 6XSHUYLVRU\%RDUG0HPEHUV)XUWKHUPRUHLWZDVUHVROYHGDWWKHWKRUGLQDU\
JHQHUDOPHHWLQJRIVKDUHKROGHUVKHOGRQ-XQH

 WKDW D SHUIRUPDQFHEDVHG VWRFNFRPSHQVDWLRQ SODQ n%RDUG %HQHILW 7UXVW %%7 |
ZRXOGEHLQWURGXFHG
,Q FRQMXQFWLRQ ZLWK WKH LQWURGXFWLRQ RI %%7 ZH
ZLOO WHUPLQDWH WKH V\VWHP RI VWRFNOLQNHGFRPSHQVDWLRQ IRU 'LUHFWRUV DQG KHQFH ZLOO QRWLVVXHQHZVWRFNRSWLRQVIRUWKHWLPHEHLQJ
7KH UHWLUHPHQW EHQHILW SODQ IRU ([HFXWLYH
PHPEHUVKDVEHHQWHUPLQDWHGIRUERWK'LUHFWRUV
DQG $XGLW  6XSHUYLVRU\ %RDUG 0HPEHUV DV RI
WKH FRQFOXVLRQ RI WKH QG RUGLQDU\ JHQHUDO
PHHWLQJRIVKDUHKROGHUVKHOGRQ-XQH


62&,$/(19,5210(17‫ٹ‬3ROLF\IRUGHWHUPLQLQJWKHDPRXQWRIUHPXQHUDWLRQHWFIRU([HFXWLYHPHPEHUVWKRUGLQDU\JHQHUDOPHHWLQJRIVKDUHKROGHUV -XQH   .21'27(&5(3257  

6833/(0(17*29(51$1&(6833/(0(17

SUPPLEMENT

6WRFN,QIRUPDWLRQ2UJDQL]DWLRQ&KDUW.21'27(&1HWZRUN0DS&RQVROLGDWHG)LQDQFLDO6WDWHPHQWV  .21'27(&5(3257

6XSSRUWLQJ0DWHULDOV5HODWHGOLQNV
7R.21'27(&ZHEVLWH +20(,56WRFN %RQGV6WRFN,QIRUPDWLRQ

6WRFNLQIRUPDWLRQ$VRI0DUFK

7RWDOQXPEHURIVKDUHVDXWKRUL]HGVKDUHV7RWDOQXPEHURIVKDUHVLVVXHG

VKDUHV

6KDUHVSHUXQLW:($5(.21'27(& ‫&ٹ‬RPSDQ\bVVWRFNVKDUHV

7RZD.RVDQ&RUS



%%+)25),'(/,7</2:35,&('672&.)81'
35,1&,3$/$//6(&72568%3257)2/,2 

.21'27(&HPSOR\HHVVKDUHKROGHUVDVVRFLDWLRQ

2VDND6PDOODQG0HGLXP%XVLQHVV,QYHVWPHQW &RQVXOWDWLRQ&R/WG

)SODQQLQJ,1&





-DSDQ7UXVWHH6HUYLFHV%DQN/WG WUXVWDFFRXQW 





7KH%DQNRI7RN\R0LWVXELVKL8)-/WG





-XPPL.RQGR





7RWR.RVDQ,1&





0DVDKLGH.RQGR





WKRXVDQGVKDUHVRIWUHDVXU\VWRFN H[FOXGLQJWKRXVDQGVKDUHVLQWKH(623WUXVWDFFRXQW DUHQRWLQFOXGHGLQWKHDERYHn0DMRUVKDUHKROGHUV|  3HUFHQWDJHLVFDOFXODWHGZLWKWUHDVXU\VKDUHVH[FOXGHG

‫ٹ‬6WRFNGLVWULEXWLRQE\VKDUHKROGHUFDWHJRU\WKRXVDQGVKDUHV
1XPEHURIVKDUHKROGHUV WKRXVDQGVKDUHV
1XPEHURIVKDUHKROGHUV 
1XPEHURIVKDUHKROGHUV 

2WKHUFRPSDQLHV

*29(51$1&()RUHLJQFRPSDQLHV
HWF

1XPEHURIVKDUHKROGHUV

6HFXULWLHVWKRXVDQGVKDUHVFRPSDQLHVWKRXVDQGVKDUHV
1XPEHURIVKDUHKROGHUV 
6833/(0(17,QGLYLGXDOVRWKHU

62&,$/

)LQDQFLDOLQVWLWXWLRQV7UHDVXU\VWRFN

WKRXVDQGVKDUHV
1XPEHURIVKDUHKROGHUV WKRXVDQGVKDUHV
1XPEHURIVKDUHKROGHUV ),1$1&,$/'$7$

3HUFHQWDJH

(19,5210(17

1XPEHURIVKDUHVKHOG7KRXVDQGVKDUHV 

1DPHRIVKDUHKROGHU

.21'27(& 9,6,21

‫ٹ‬0DMRUVKDUHKROGHUV  .21'27(&5(3257  

6833/(0(17
6WRFN,QIRUPDWLRQ2UJDQL]DWLRQ&KDUW.21'27(&1HWZRUN0DS&RQVROLGDWHG)LQDQFLDO6WDWHPHQWV2UJDQL]DWLRQ&KDUW$VRI-XO\%XVLQHVV 6WUDWHJ\'HSDUWPHQW,QWHUQDO$XGLW'HSDUWPHQW,QWHUQDO$XGLW6HFWLRQ
6DOHV3URPRWLRQ6HFWLRQ6DSSRUR%UDQFK6HQGDL%UDQFK$RPRUL2IILFH
$NLWD2IILFH
0RULRND2IILFH
.RUL\DPD2IILFH

(DVWHUQ-DSDQ6DOHV'LYLVLRQ

7RN\R%UDQFK<XNL2IILFH
&KLED2IILFH<RNRKDPD%UDQFK1LLJDWD%UDQFK
6DLWDPD2IILFH+DFKLRML2IILFH
6KL]XRND2IILFH
1DJR\D%UDQFK0DWVXPRWR2IILFH
.DQD]DZD2IILFH
2VDND%UDQFK.\RWR2IILFH

:HVWHUQ-DSDQ6DOHV'LYLVLRQ

.REH2IILFH
7DNDPDWVX2IILFH
+LURVKLPD%UDQFK)XNXRND%UDQFK
1DJDVDNL2IILFH
.XPDPRWR2IILFH,QWHUQDWLRQDO 6DOHV'LYLVLRQ*HQHUDO‫ۂ‬HHWLQJ RI‫ۈ‬KDUHKROGHUV$XGLW 6XSHUYLVRU\%RDUG$XGLW 6XSHUYLVRU\%RDUG0HPEHUV.DJRVKLPD2IILFH

+RPHFHQWHU*URXS'HYHORSPHQW 6DOHV'LYLVLRQ

5DLOURDG (QYLURQPHQW*URXS%RDUGRI'LUHFWRUV(FRPPHUFH*URXS7RKRNX2IILFH

3UHVLGHQW 
5HSUHVHQWDWLYH 'LUHFWRU)XNXVKLPD2IILFH

6DOHV+HDGTXDUWHUV.LWDNDQWR2IILFH
.DQWR2IILFH+LJDVKLNDQWR2IILFH
.DQDJDZD2IILFH
1DJDQR2IILFH
6WUXFWXUDO6WHHO6DOHV'LYLVLRQ

7RNDL2IILFH
+DPDPDWVX2IILFH&KXN\R%UDQFK.HLML2IILFH
.DQVDL%UDQFK+\RJR2IILFH
6DQ\R2IILFH
.LWDN\XVKX2IILFH.\XVKX2IILFH

3XUFKDVLQJ'LYLVLRQ3XUFKDVLQJ6HFWLRQ*HQHUDO$IIDLUV6HFWLRQ'HOLYHU\6HFWLRQ/RJLVWLFV6HFWLRQ'HOLYHU\'LYLVLRQ.DQWR/RJLVWLFV&HQWHU'HOLYHU\6HFWLRQ6DSSRUR)DFWRU\0DQXIDFWXULQJ6HFWLRQ'HOLYHU\6HFWLRQ.DQWR)DFWRU\

4XDOLW\&RQWURO6HFWLRQ0DQXIDFWXULQJ6HFWLRQ0DQXIDFWXULQJ+HDGTXDUWHUV'HOLYHU\6HFWLRQ

6KLJD)DFWRU\0DQXIDFWXULQJ6HFWLRQ
5HVHDUFK 'HYHORSPHQW'HSDUWPHQW

5HVHDUFK 'HYHORSPHQW
6HFWLRQ

4XDOLW\&RQWURO6HFWLRQ.\XVKX)DFWRU\0DQXIDFWXULQJ
'HSDUWPHQW'HOLYHU\ 'HSDUWPHQW

0DQXIDFWXULQJ
7HFKQRORJ\6HFWLRQ
7XUQEXFNOH
0DQXIDFWXULQJ6HFWLRQ%UDFH0DQXIDFWXULQJ
6HFWLRQ&KDLQ0DQXIDFWXULQJ
6HFWLRQ
3DUWV0DQXIDFWXULQJ
6HFWLRQ'HOLYHU\6HFWLRQ*HQHUDO$IIDLUV6HFWLRQ*HQHUDO$IIDLUV6HFWLRQ0DQDJHPHQW+HDGTXDUWHUV*HQHUDO$IIDLUV'LYLVLRQ+XPDQ5HVRXUFHV6HFWLRQ&RPSXWHU6\VWHP6HFWLRQ
3ODQQLQJ6HFWLRQ$FFRXQWLQJ'LYLVLRQ  .21'27(&5(3257$FFRXQWLQJ6HFWLRQ
6FUHHQLQJ6HFWLRQ5HODWHGOLQNV
7R.21'27(&ZHEVLWH +20(&203$1<2XU1HWZRUN

6833/(0(17*29(51$1&(

62&,$/

(19,5210(17),1$1&,$/'$7$

.21'27(& 9,6,21

:($5(.21'27(& .21'27(&1HWZRUN $VRI-XO\

  .21'27(&5(3257  

6833/(0(17
6WRFN,QIRUPDWLRQ2UJDQL]DWLRQ&KDUW.21'27(&1HWZRUN0DS&RQVROLGDWHG)LQDQFLDO6WDWHPHQWV&RQVROLGDWHG)LQDQFLDO6WDWHPHQWV‫&ٹ‬RQVROLGDWHG%DODQFH6KHHW




7KRXVDQG\HQ 

7KRXVDQG86GROODUV 





$VVHWV &XUUHQWDVVHWV  &DVKDQGGHSRVLWV





  1RWHVDQGDFFRXQWVUHFHLYDEOHWUDGH





  (OHFWURQLFDOO\UHFRUGHGPRQHWDU\FODLPVRSHUDWLQJ





  0HUFKDQGLVHDQGILQLVKHGJRRGV



  :RUNLQSURFHVV





  5DZPDWHULDOVDQGVXSSOLHV





  'HIHUUHGWD[DVVHWV



  2WKHU





   































  2WKHU



  7RWDOLQWDQJLEOHDVVHWV

  ,QYHVWPHQWVHFXULWLHV



  'HIHUUHGWD[DVVHWV



  2WKHU

  $OORZDQFHIRUGRXEWIXODFFRXQWV   

  7RWDOLQYHVWPHQWVDQGRWKHUDVVHWV



 7RWDOQRQFXUUHQWDVVHWV





7RWDODVVHWV





  $OORZDQFHIRUGRXEWIXODFFRXQWV  7RWDOFXUUHQWDVVHWV1RQFXUUHQWDVVHWV 3URSHUW\SODQWDQGHTXLSPHQW  %XLOGLQJVDQGVWUXFWXUHV QHW   0DFKLQHU\HTXLSPHQWDQGYHKLFOHV QHW   /DQG  2WKHU QHW   7RWDOSURSHUW\SODQWDQGHTXLSPHQW ,QWDQJLEOHDVVHWV ,QYHVWPHQWVDQGRWKHUDVVHWVAll financial information presented in Japanese yen has been rounded down to the nearest million.
The translations of Japanese yen amounts into U.S. dollar amounts are included solely for the convenience of readers
outside Japan and have been made at the rate of exchange at March 31, 2017. U.S. dollar amounts are rounded down
to the nearest thousand.

  .21'27(&5(3257







  (OHFWURQLFDOO\UHFRUGHGREOLJDWLRQVtRSHUDWLQJ





  6KRUWWHUPORDQVSD\DEOH





  ,QFRPHWD[HVSD\DEOH





  3URYLVLRQIRUERQXVHV





  2WKHU























  7RWDOQRQFXUUHQWOLDELOLWLHV





 7RWDOOLDELOLWLHV



  &DSLWDOVWRFN





  &DSLWDOVXUSOXV





  5HWDLQHGHDUQLQJV



  7UHDVXU\VWRFN   











        )RUHLJQFXUUHQF\WUDQVODWLRQDGMXVWPHQW   5HPHDVXUHPHQWVRIGHILQHGEHQHILWSODQV     7RWDODFFXPXODWHGRWKHUFRPSUHKHQVLYH
LQFRPH

   











 7RWDOQHWDVVHWV





7RWDOOLDELOLWLHVDQGQHWDVVHWV





 &XUUHQWOLDELOLWLHV  7RWDOFXUUHQWOLDELOLWLHV 1RQFXUUHQWOLDELOLWLHV  'HIHUUHGWD[OLDELOLWLHVIRUODQGUHYDOXDWLRQ  1HWGHILQHGEHQHILWOLDELOLW\  2WKHU

1HWDVVHWV 6KDUHKROGHUVbHTXLW\  7RWDOVKDUHKROGHUVbHTXLW\ $FFXPXODWHGRWKHUFRPSUHKHQVLYHLQFRPH  9DOXDWLRQGLIIHUHQFHRQDYDLODEOHIRUVDOH
VHFXULWLHV  'HIHUUHGJDLQVRUORVVHVRQKHGJHV  5HYDOXDWLRQUHVHUYHIRUODQG 6XEVFULSWLRQULJKWVWRVKDUHV
 1RQFRQWUROOLQJLQWHUHVWV  .21'27(&5(3257  .21'27(& 9,6,21

  1RWHVDQGDFFRXQWVSD\DEOHWUDGH

/LDELOLWLHV

),1$1&,$/'$7$

(19,5210(17

62&,$/*29(51$1&(

7KRXVDQG86GROODUV 

6833/(0(17

7KRXVDQG\HQ :($5(.21'27(& 

5HODWHGOLQNV
7R.21'27(&ZHEVLWH 

6833/(0(17
6WRFN,QIRUPDWLRQ2UJDQL]DWLRQ&KDUW.21'27(&1HWZRUN0DS&RQVROLGDWHG)LQDQFLDO6WDWHPHQWV‫&ٹ‬RQVROLGDWHG,QFRPH6WDWHPHQW7KRXVDQG\HQ 





7KRXVDQG86GROODUV 

1HWVDOHV





&RVWRIVDOHV





*URVVSURILW





6HOOLQJJHQHUDODQG
DGPLQLVWUDWLYHH[SHQVHV





2SHUDWLQJLQFRPH







 ,QWHUHVWLQFRPH



 'LYLGHQGVLQFRPH





 3XUFKDVHGLVFRXQWV





 0LVFHOODQHRXVLQFRPH







 7RWDOQRQRSHUDWLQJLQFRPH

 6DOHVGLVFRXQWV



 ,QWHUHVWH[SHQVHV



 0LVFHOODQHRXVORVV





 7RWDOQRQRSHUDWLQJH[SHQVHV



































 ,PSDLUPHQWORVV



 7RWDOH[WUDRUGLQDU\ORVV

,QFRPHEHIRUHLQFRPHWD[HV



,QFRPHWD[HVFXUUHQW



,QFRPHWD[HVGHIHUUHG





7RWDOLQFRPHWD[HVSD\DEOH







3URILW







 

 







1RQRSHUDWLQJLQFRPH

1RQRSHUDWLQJH[SHQVHV2UGLQDU\LQFRPH
([WUDRUGLQDU\LQFRPH *DLQRQVDOHVRIQRQFXUUHQWDVVHWV *DLQRQVDOHVRILQYHVWPHQWVHFXULWLHV 7RWDOH[WUDRUGLQDU\LQFRPH
([WUDRUGLQDU\ORVV /RVVRQVDOHVRIQRQFXUUHQWDVVHWV /RVVRQGLVSRVDORIQRQFXUUHQWDVVHWV

3URILW ORVV DWWULEXWDEOHWRQRQFRQWUROOLQJLQWHUHVWV
3URILWDWWULEXWDEOHWRRZQHUVRI
SDUHQW  .21'27(&5(3257

3URILW











 9DOXDWLRQGLIIHUHQFHRQDYDLODEOHIRUVDOHVHFXULWLHV 



 'HIHUUHGJDLQVRUORVVHVRQKHGJHV   

 

 

 7RWDORWKHUFRPSUHKHQVLYHLQFRPH

 



&RPSUHKHQVLYHLQFRPH













 

 

 

2WKHUFRPSUHKHQVLYHLQFRPH

 5HYDOXDWLRQUHVHUYHIRUODQG )RUHLJQFXUUHQF\WUDQVODWLRQDGMXVWPHQW
 5HPHDVXUHPHQWVRIGHILQHGEHQHILWSODQV%UHDNGRZQ  &RPSUHKHQVLYHLQFRPHDWWULEXWDEOHWRRZQHUVRISDUHQW &RPSUHKHQVLYHLQFRPHDWWULEXWDEOHWRQRQFRQWUROOLQJLQWHUHVWV

6833/(0(17*29(51$1&(

62&,$/

$OOILQDQFLDOLQIRUPDWLRQSUHVHQWHGLQ-DSDQHVH\HQKDVEHHQURXQGHGGRZQWRWKHQHDUHVWPLOOLRQ7KHWUDQVODWLRQVRI-DSDQHVH\HQDPRXQWVLQWR86GROODUDPRXQWVDUHLQFOXGHGVROHO\IRUWKHFRQYHQLHQFHRIUHDGHUVRXWVLGH-DSDQDQGKDYHEHHQPDGHDWWKHUDWHRIH[FKDQJHDW0DUFK86GROODUDPRXQWVDUHURXQGHGGRZQWRWKHQHDUHVWWKRXVDQG

.21'27(& 9,6,21

),1$1&,$/'$7$

7KRXVDQG86GROODUV 

7KRXVDQG\HQ (19,5210(17‫&ٹ‬RQVROLGDWHG6WDWHPHQWRI&RPSUHKHQVLYH,QFRPH

:($5(.21'27(& 

5HODWHGOLQNV
7R.21'27(&ZHEVLWH   .21'27(&5(3257  

6833/(0(17
6WRFN,QIRUPDWLRQ2UJDQL]DWLRQ&KDUW.21'27(&1HWZRUN0DS&RQVROLGDWHG)LQDQFLDO6WDWHPHQWV‫&ٹ‬RQVROLGDWHG6WDWHPHQWRI&KDQJHVLQ6KDUHKROGHUVb(TXLW\

7KRXVDQG\HQ $FFXPXODWHGRWKHUFRPSUHKHQVLYHLQFRPH

6KDUHKROGHUVbHTXLW\&DSLWDOVWRFN%DODQFHDWEHJLQQLQJRIWKHSHULRG&DSLWDOVXUSOXV



&KDQJHVRILWHPVGXULQJWKHSHULRG &DVKGLYLGHQGV 3URILWDWWULEXWDEOHWRRZQHUVRISDUHQW 3XUFKDVHRIWUHDVXU\VWRFN 'LVSRVDORIWUHDVXU\VWRFN 1HWFKDQJHVRILWHPVRWKHUWKDQVKDUHKROGHUVbHTXLW\

9DOXDWLRQGLIIHUHQFH
7RWDOVKDUHKROGHUVb
'HIHUUHGJDLQVRU
RQDYDLODEOHIRUVDOHHTXLW\
ORVVHVRQKHGJHVVHFXULWLHV

7UHDVXU\VWRFN

5HWDLQHGHDUQLQJV 



          

 











7RWDOFKDQJHVRILWHPVGXULQJWKH
SHULRG



 %DODQFHDWWKHHQGRIWKHSHULRG







 

  

  



 $FFXPXODWHGRWKHUFRPSUHKHQVLYHLQFRPH%DODQFHDWEHJLQQLQJRIWKHSHULRG

 



1RQFRQWUROOLQJLQWHUHVWV

6XEVFULSWLRQULJKWVWRVKDUHV7RWDODFFXPXODWHG
)RUHLJQFXUUHQF\
5HPHDVXUHPHQWVRIRWKHUFRPSUHKHQVLYH
WUDQVODWLRQGHILQHGEHQHILWSODQVLQFRPHDGMXVWPHQW

5HYDOXDWLRQUHVHUYHIRUODQG

 

7RWDOQHWDVVHWV

&KDQJHVRILWHPVGXULQJWKHSHULRG













&DVKGLYLGHQGV













 

3URILWDWWULEXWDEOHWRRZQHUVRISDUHQW















3XUFKDVHRIWUHDVXU\VWRFN













 

'LVSRVDORIWUHDVXU\VWRFN















1HWFKDQJHVRILWHPVRWKHUWKDQVKDUHKROGHUVbHTXLW\

  

7RWDOFKDQJHVRILWHPVGXULQJWKH
SHULRG

 %DODQFHDWWKHHQGRIWKHSHULRG

       

  



 

7KRXVDQG\HQ $FFXPXODWHGRWKHUFRPSUHKHQVLYHLQFRPH

6KDUHKROGHUVbHTXLW\&DSLWDOVWRFN%DODQFHDWEHJLQQLQJRIWKHSHULRG&DSLWDOVXUSOXV



&KDQJHVRILWHPVGXULQJWKHSHULRG&DVKGLYLGHQGV3URILWDWWULEXWDEOHWRRZQHUVRISDUHQW

3XUFKDVHRIWUHDVXU\VWRFN'LVSRVDORIWUHDVXU\VWRFN1HWFKDQJHVRILWHPVRWKHUWKDQVKDUHKROGHUVbHTXLW\







9DOXDWLRQGLIIHUHQFH
7RWDOVKDUHKROGHUVb
'HIHUUHGJDLQVRU
RQDYDLODEOHIRUVDOHHTXLW\
ORVVHVRQKHGJHVVHFXULWLHV

7UHDVXU\VWRFN

5HWDLQHGHDUQLQJV

 



           

 











 7RWDOFKDQJHVRILWHPVGXULQJWKH
SHULRG



 



 %DODQFHDWWKHHQGRIWKHSHULRG







 



 $FFXPXODWHGRWKHUFRPSUHKHQVLYHLQFRPH%DODQFHDWEHJLQQLQJRIWKHSHULRG

   

1RQFRQWUROOLQJLQWHUHVWV

6XEVFULSWLRQULJKWVWRVKDUHV7RWDODFFXPXODWHG
)RUHLJQFXUUHQF\
5HPHDVXUHPHQWVRIRWKHUFRPSUHKHQVLYH
WUDQVODWLRQGHILQHGEHQHILWSODQVLQFRPHDGMXVWPHQW

5HYDOXDWLRQUHVHUYHIRUODQG

 

7RWDOQHWDVVHWV

&KDQJHVRILWHPVGXULQJWKHSHULRG













&DVKGLYLGHQGV













 

3URILWDWWULEXWDEOHWRRZQHUVRISDUHQW















3XUFKDVHRIWUHDVXU\VWRFN













 

'LVSRVDORIWUHDVXU\VWRFN















1HWFKDQJHVRILWHPVRWKHUWKDQVKDUHKROGHUVbHTXLW\

7RWDOFKDQJHVRILWHPVGXULQJWKH
SHULRG

%DODQFHDWWKHHQGRIWKHSHULRG

 

  .21'27(&5(3257





 





 

  



7KRXVDQG86GROODUV $FFXPXODWHGRWKHUFRPSUHKHQVLYHLQFRPH

6KDUHKROGHUVbHTXLW\&DSLWDOVWRFN%DODQFHDWEHJLQQLQJRIWKHSHULRG&DSLWDOVXUSOXV

&KDQJHVRILWHPVGXULQJWKHSHULRG&DVKGLYLGHQGV3URILWDWWULEXWDEOHWRRZQHUVRISDUHQW

3XUFKDVHRIWUHDVXU\VWRFN'LVSRVDORIWUHDVXU\VWRFN1HWFKDQJHVRILWHPVRWKHUWKDQVKDUHKROGHUVbHTXLW\







9DOXDWLRQGLIIHUHQFH
7RWDOVKDUHKROGHUVb
'HIHUUHGJDLQVRU
RQDYDLODEOHIRUVDOHHTXLW\
ORVVHVRQKHGJHVVHFXULWLHV

7UHDVXU\VWRFN

5HWDLQHGHDUQLQJV

 



 





          

 











 

7RWDOFKDQJHVRILWHPVGXULQJWKH
SHULRG 



 

%DODQFHDWWKHHQGRIWKHSHULRG





 



 .21'27(& 9,6,21

:($5(.21'27(& 

5HODWHGOLQNV
7R.21'27(&ZHEVLWH $FFXPXODWHGRWKHUFRPSUHKHQVLYHLQFRPH

    

7RWDOQHWDVVHWV&KDQJHVRILWHPVGXULQJWKHSHULRG













&DVKGLYLGHQGV













 3URILWDWWULEXWDEOHWRRZQHUVRISDUHQW















3XUFKDVHRIWUHDVXU\VWRFN













 'LVSRVDORIWUHDVXU\VWRFN















1HWFKDQJHVRILWHPVRWKHUWKDQVKDUHKROGHUVbHTXLW\





7RWDOFKDQJHVRILWHPVGXULQJWKH
SHULRG%DODQFHDWWKHHQGRIWKHSHULRG

 











 







 

  

),1$1&,$/'$7$

%DODQFHDWEHJLQQLQJRIWKHSHULRG

1RQFRQWUROOLQJLQWHUHVWV

6XEVFULSWLRQULJKWVWRVKDUHV7RWDODFFXPXODWHG
)RUHLJQFXUUHQF\
5HPHDVXUHPHQWVRIRWKHUFRPSUHKHQVLYH
WUDQVODWLRQGHILQHGEHQHILWSODQVLQFRPHDGMXVWPHQW

5HYDOXDWLRQUHVHUYHIRUODQG

6833/(0(17*29(51$1&(

62&,$/

$OOILQDQFLDOLQIRUPDWLRQSUHVHQWHGLQ-DSDQHVH\HQKDVEHHQURXQGHGGRZQWRWKHQHDUHVWPLOOLRQ7KHWUDQVODWLRQVRI-DSDQHVH\HQDPRXQWVLQWR86GROODUDPRXQWVDUHLQFOXGHGVROHO\IRUWKHFRQYHQLHQFHRIUHDGHUVRXWVLGH-DSDQDQGKDYHEHHQPDGHDWWKHUDWHRIH[FKDQJHDW0DUFK86GROODUDPRXQWVDUHURXQGHGGRZQWRWKHQHDUHVWWKRXVDQG

(19,5210(17  .21'27(&5(3257  

6833/(0(17
6WRFN,QIRUPDWLRQ2UJDQL]DWLRQ&KDUW.21'27(&1HWZRUN0DS&RQVROLGDWHG)LQDQFLDO6WDWHPHQWV‫&ٹ‬RQVROLGDWHG6WDWHPHQWRI&DVK)ORZV7KRXVDQG\HQ    7KRXVDQG
86GROODUV 













 'HSUHFLDWLRQ





 ,PSDLUPHQWORVV



 6KDUHEDVHGFRPSHQVDWLRQH[SHQVHV



 ,QFUHDVH GHFUHDVH LQDOORZDQFHIRUGRXEWIXODFFRXQWV   

 ,QFUHDVH GHFUHDVH LQSURYLVLRQIRUERQXVHV

   

 ,QWHUHVWDQGGLYLGHQGVLQFRPH   

 ,QWHUHVWH[SHQVHV

 /RVV JDLQ RQVDOHVRILQYHVWPHQWVHFXULWLHV

 

 

 

 /RVV JDLQ RQVDOHVRIQRQFXUUHQWDVVHWV 

 

 

 /RVVRQGLVSRVDORIQRQFXUUHQWDVVHWV





 'HFUHDVH LQFUHDVH LQQRWHVDQGDFFRXQWVUHFHLYDEOHt
WUDGH

   'HFUHDVH LQFUHDVH LQLQYHQWRULHV

   



 ,QFUHDVH GHFUHDVH LQDFFUXHGFRQVXPSWLRQWD[HV    2WKHU









 ,QWHUHVWDQGGLYLGHQGVLQFRPHUHFHLYHG





 ,QWHUHVWH[SHQVHVSDLG

 

 

 

 ,QFRPHWD[HVSDLG

    &DVKIORZVIURPRSHUDWLQJDFWLYLWLHV





 3XUFKDVHRISURSHUW\SODQWDQGHTXLSPHQW    2WKHU   

 &DVKIORZVIURPLQYHVWLQJDFWLYLWLHV   

 1HWLQFUHDVH GHFUHDVH LQVKRUWWHUPORDQVSD\DEOH

   

 3XUFKDVHRIWUHDVXU\VWRFN

   







       

(IIHFWRIH[FKDQJHUDWHFKDQJHRQFDVKDQGFDVKHTXLYDOHQWV 



1HWLQFUHDVH GHFUHDVH LQFDVKDQGFDVKHTXLYDOHQWV 



&DVKDQGFDVKHTXLYDOHQWVEHJLQQLQJRI\HDU





&DVKDQGFDVKHTXLYDOHQWVHQGRI\HDU





&DVKIORZVIURPRSHUDWLQJDFWLYLWLHV ,QFRPHEHIRUHLQFRPHWD[HV ,QFUHDVH GHFUHDVH LQQHWGHILQHGEHQHILWOLDELOLW\ ,QFUHDVH GHFUHDVH LQQRWHVDQGDFFRXQWVSD\DEOHtWUDGH

 6XEWRWDO&DVKIORZVIURPLQYHVWLQJDFWLYLWLHV&DVKIORZVIURPILQDQFLQJDFWLYLWLHV 3URFHHGVIURPVDOHVRIWUHDVXU\VWRFN &DVKGLYLGHQGVSDLG
 2WKHU
 &DVKIORZVIURPILQDQFLQJDFWLYLWLHV$OOILQDQFLDOLQIRUPDWLRQSUHVHQWHGLQ-DSDQHVH\HQKDVEHHQURXQGHGGRZQWRWKHQHDUHVWPLOOLRQ7KHWUDQVODWLRQVRI-DSDQHVH\HQDPRXQWVLQWR86GROODUDPRXQWVDUHLQFOXGHGVROHO\IRUWKHFRQYHQLHQFHRIUHDGHUVRXWVLGH-DSDQDQGKDYHEHHQPDGHDWWKHUDWHRIH[FKDQJHDW0DUFK86GROODUDPRXQWVDUHURXQGHGGRZQWRWKHQHDUHVWWKRXVDQG
  .21'27(&5(3257

5HODWHGOLQNV
7R.21'27(&ZHEVLWH (GLWRUbV1RWH

62&,$/

(19,5210(17),1$1&,$/'$7$

.21'27(& 9,6,21
,6,21:($5(.21'27(& :(:KHQ FRQVLGHULQJ D EXVLQHVV PRGHO IRU UHDOL]LQJ D VXVWDLQDEOH VRFLHW\ IRU.21'27(& FRQWULEXWLRQ WR nWKH DGYDQFHPHQW RI IHPDOHZRUNHUV LQ VRFLHW\|
LV RQH RI WKHNH\ IDFWRUV0HDQZKLOHFRQVLGHULQJ WKH EHQW RI WKH ,QWHJUDWHG
5HSRUW ZH QHHGHG WR QRW RQO\ LQWHJUDWH YDULRXV UHSRUWLQJ PDWWHUV WKDW ZH
KDG EHHQ GLVFORVLQJ WR GDWH LQWR WKLV 5HSRUW EXW DOVR WDNH D VWHS IXUWKHUJUDVS WKH &RPSDQ\ FRPSUHKHQVLYHO\ DQG GLVFXVV PDWWHUV IURP YDULRXVSHUVSHFWLYHV
7KHUHIRUHZHIRUPHGDSURMHFWWHDPFRQVLVWLQJPDLQO\RIIHPDOHHPSOR\HHV
DQG WKRVH ZLWK GLYHUVH FDUHHU EDFNJURXQGV DQG NQRZOHGJH LQFOXGLQJHPSOR\HHVZKRKDYHWDNHQFKLOGFDUHOHDYHDQGH[SHULHQFHGMREURWDWLRQV:KLOHWKHSURMHFWWHDPZHQWWKURXJKDWULDODQGHUURUSURFHVVDQG
PRYHGDKHDGZLWKWKHSURMHFWWKHUHSRUWVWLOOKDVURRPIRUIXUWKHULPSURYHPHQW:HZLOOFRQWLQXHWRZRUNRQ
LPSURYLQJ.21'27(&5HSRUWZKLOHHQKDQFLQJRXUGLDORJXHRQ
(6*ZLWKVWDNHKROGHUVLQRXUVLQFHUHKRSHWKDWWKH
.21'27(&*URXSZLOOJURZWRFRQWULEXWHWR
WKHGHYHORSPHQWRIDVXVWDLQDEOHVRFLHW\
6HQLRU([HFXWLYH'LUHFWRUDQG*HQHUDO0DQDJHU
0DQDJHPHQW+HDGTXDUWHUV                                            
7RPR\D$QGR‫ٲ‬+56HFWLRQ
56HFWLRQ‫ٲ‬3ODQQLQJ
‫ٲ‬3O‫ٲ‬6DOHV‫*ٲ‬HQHUDO

 UHFUXLWPHQWFUXLWPHQW

6HFWLRQ6H

+HDGTXDUWHUV 

$IIDLUVWUDLQLQJ&WUDLQLQJ ,5,5HWF 3URPRWLRQ6HFWLRQHWF
F

‫ٲ‬-RLQWHGLQ‫ٲ‬-RWRROVHWF

 (TXLWLHVHWFQWHGLQ‫ٲ‬-RLQWHGLQ

‫ٲ‬-RLQWHG‫ٲ‬-RLQWHG

LQ

LQ



  .21'27(&5(3257  

6833/(0(17*29(51$1&(352-(&70(0%(5Notes on forward-looking statements
This document contains forward-looking statements including operating forecasts and businessplans.
Future operating performance projections that the Company releases are based on data available atthe time of making the release. Actual results may differ considerably from projections due tovarious factors and changes.

Detailed information on financial results
For details of financial results for the year ended March 31, 2017, please referto the Annual Securities Report.
URL : http://www.kondotec.co.jp/ir/library/asset_securities.html

Reporting coverage period◆Reporting period
April 1, 2016 through March 31, 2017
(Activities in April 2017 and thereafter are included in part.)◆Reporting organization
KONDOTEC INC. and its group companies◆Accounting standard
Japanese GAAP

2-2-90 Sakaigawa, Nishi-ku, Osaka
550-0024 Japan
Telephone : 06-6582-8441
Website : http://www.kondotec.co.jp