Professional Documents
Culture Documents
) XDW$NVX &Rqilghqfh%Xloglqj1Hjrwldwlrq$Qg (Frqrplf&Rrshudwlrq (Iiruwv, Q7Xunlvk Uhhn5Hodwlrqv 7Xunlvk5Hylhzri%Dondq6Wxglhv$Qqxdo VV
) XDW$NVX &Rqilghqfh%Xloglqj1Hjrwldwlrq$Qg (Frqrplf&Rrshudwlrq (Iiruwv, Q7Xunlvk Uhhn5Hodwlrqv 7Xunlvk5Hylhzri%Dondq6Wxglhv$Qqxdo VV
)XDW$NVX
³&RQILGHQFH%XLOGLQJ1HJRWLDWLRQ$QG
(FRQRPLF&RRSHUDWLRQ(IIRUWV,Q7XUNLVK
*UHHN5HODWLRQV
7XUNLVK5HYLHZRI%DONDQ6WXGLHV$QQXDO
VV
&21),'(1&(%8,/',1*1(*27,$7,21$1'(&2120,&&223(5$7,21
())2576,1785.,6+*5((.5(/$7,216
)XDW$.68
,1752'8&7,21
7KHUH DUH D JRRG QXPEHU RI SXEOLFDWLRQV FRYHULQJ WKH ORQJVWDQGLQJ DQG
SUREOHPDWLF 7XUNLVK*UHHN UHODWLRQV +RZHYHU VWXGLHV IRFXVLQJ RQ WKH HFRQRPLF
DVSHFWRIWKHUHODWLRQVEHWZHHQWKHWZR6WDWHVDUHIHZ7KLVLVTXLWHXQGHUVWDQGDEOH
VLQFHWKHFRQIOLFWLVVXHVEHWZHHQWKHWZRFRXQWULHVKDYHEHHQFRQVLGHUHGZLWKLQWKH
IUDPHZRUN RI ³QDWLRQDO LQWHUHVWV´ DQG ³VHFXULW\´ FRQFHUQV 2QO\ GXULQJ WKH UHFHQW
\HDUV ZKHQ FRQILGHQFHEXLOGLQJ PHDVXUHV &%0V ZHUH EURXJKW WR OLIH DQG
QHJRWLDWLRQ JURXQGV ZHUH PDGH WR FUHDWH QHJRWLDWLRQ JURXQGV GLG WKH QHHG IRU
IRVWHULQJHFRQRPLFUHODWLRQVSUHYDLO
$VDPDWWHURIIDFW7XUNH\KDGORQJEHIRUHVXJJHVWHGWREXLOGXSWKHUHODWLRQV
RQHFRQRPLFEDVLVUDWKHUWKDQUHYHUWLQJWRVHFXULW\LVVXHVDQGKDGVWDUWHGHIIRUWVLQ
WKDW GLUHFWLRQ VLQFH 1DPHO\ GXULQJ WKH 3ULPH 0LQLVWU\ RI 7XUJXW g]DO GXH WR
WKH QHJDWLYH LPSDFW RI WKH WKHQ 7XUNLVK*UHHN WHQVLRQ RQ 7XUNH\¶V IRUHLJQ SROLF\
VWUDWHJLHV 7XUNH\ KDG FRQFOXGHG WKDW 7XUNLVK *UHHN UHODWLRQV KDG WREHEDVHGRQ
HFRQRPLF FRRSHUDWLRQ LQ SULRULW\ +RZHYHU 7XUNH\¶V HIIRUWV LQ WKLV UHVSHFW ZHUH QRW
WDNHQ LQWR FRQVLGHUDWLRQ E\ *UHHFH DQG ZHUH LQ YDLQ $V ZLOO EH WDNHQ XS LQ GHWDLO
ODWHU RQ LQ WKLV VWXG\ 7XUNH\ KDV GRQH KHU VKDUH LQ WU\LQJWR EXLOG XS UHODWLRQV RQ
HFRQRPLF FRRSHUDWLRQ EDVLV DQG FUHDWH D VXVWDLQDEOH VHFXULW\ HQYLURQPHQW
0RUHRYHU 7XUNH\ GDUHG IRU DWWHPSWV LQ WKLV UHVSHFW VRPHWLPHV HYHQ VWDNLQJ
GRPHVWLFFRQFHUQVZKLOH*UHHFHVWLOOFDUULHGRQLWVVHSWLFDQGUHOXFWDQWDWWLWXGH,QD
ZD\UHODWLRQVEHWZHHQ7XUNH\DQG*UHHFHDGRSWHGD³&ROG:DU´OLNHPDQQHUUDWKHU
WKDQD³GpWHQWH´SHULRGXQWLOWKHODVWTXDUWHURIV
$V IRU WKH ODVW TXDUWHU RI V ELODWHUDO UHODWLRQV H[KLELWHG VRXQG DQG VROLG
GHYHORSPHQWV UHVXOWLQJ LQ GLDORJXH DQG QHJRWLDWLRQ 7KH LQLWLDWLRQ RI ³VHFXULW\ DQG
FRQILGHQFHEXLOGLQJPHDVXUHV´SURYHGWKHEHJLQQLQJRIDJHQXLQH³GpWHQWH´SHULRGLQ
$VVLVW 3URI 'U <ÕOGÕ] 7HFKQLFDO 8QLYHUVLW\ 'HSDUWPHQW RI 3ROLWLFDO 6FLHQFH DQG ,QWHUQDWLRQDO
5HODWLRQV
WKH UHODWLRQV ,W ZDV DSSDUHQW WKDW ILQDOO\ ERWK SDUWLHV KDG VHQVLEO\ UHYLVHG WKHLU
FRPSUHKHQVLRQV RI ³QDWLRQDO LQWHUHVWV´ DQG ³VHFXULW\´ FRQFHUQV ,Q OLQH ZLWK VXFK
GHYHORSPHQWVKRSHVIRUQHJRWLDWLRQEORRPHG'HVSLWHWKHLPSURYHPHQWVWKHEDVLF
TXHVWLRQHQFRPSDVVLQJWKLVVWXG\VWLOOSUHYDLOV
7R ZKDW H[WHQW WKH OHYHO RI HFRQRPLF FRRSHUDWLRQ \LHOGV DQ LPSDFW RYHU WKH
XQUDYHOLQJRIEDVLFSUREOHPDWLFUHODWLRQVDQGRYHUWKHLQFUHDVHDQGWKHUHOHDVHRIWKH
SHUVLVWLQJ WHQVLRQ LQ 7XUNLVK*UHHN UHODWLRQV" 3XWWLQJ LW PRUH FOHDUO\ ZLOO WKH
LPSURYHPHQWLQHFRQRPLFUHODWLRQVFRQWULEXWHWRWKHVROXWLRQRIQXPHURXVPDWWHUVRI
FRQIOLFWEHWZHHQWKHPUDQJLQJIURP³QDWLRQDOVRYHUHLJQW\´WR³YLWDOLQWHUHVWV´
0RUURZ 6LYHUVRQ DQG 7DEDUHV DOO FODLP WKDW DPRQJ WKH VWDWHV KDYLQJ
GLVFRUGDQW UHODWLRQV RQH RI WKH EDVLF LVVXHV RI FRQIOLFW RQ IRUHLJQ WUDGH DQDO\VLV LV
WKDW SROLWLFDO UHODWLRQV EHWZHHQ WKH VWDWHV PLJKWGLUHFWO\RULQGLUHFWO\LQIOXHQFHWKHLU
IRUHLJQWUDGHUHODWLRQV$FFRUGLQJWRWKHVHZULWHUV
x FRQIOLFWDQGDQWLFLSDWLRQRIFRQIOLFWUHGXFHWUDGHIORZVEHWZHHQWKHVWDWHV
x SDLUVRIGHPRFUDWLFVWDWHVZLOOWUDGHPRUHWKDQWKHRWKHUSDLUVRIVWDWHV
+HUHWKHFRQFHSWVRI³QDWLRQDOVRYHUHLJQW\´DQG³YLWDOLQWHUHVWV´DUHWDNHQXSLQWKHPRVWFRPPRQ
XVDJH,QWKHVFRSHRI,QWHUQDWLRQDO5HODWLRQVWKHVWDWHVEHLQJWKHPDMRUDFWRUVRIWKHLQWHUQDWLRQDO
DUHQD DUH VXSSRVHG WR HQMR\ IXOO LQGHSHQGHQFH ZLWKLQ WKHLU GHILQLWHO\ GHWHUPLQHG WHUULWRULDO ERUGHUV
7KLVLVQHFHVVDU\IRUERWKGRPHVWLFDQGLQWHUQDWLRQDOUHDVRQVLQRUGHUWRDYRLGFRQIURQWDWLRQDPRQJ
DFWRUV 7KLV FDVH LV PRUH YLWDO EHWZHHQ 7XUNH\ DQG *UHHFH VLQFH GXULQJ WKH QHJRWLDWLRQV RI WKH
/DXVDQQH 3HDFH 7UHDW\ WKH LVVXH RI VRYHUHLJQW\ RYHU VRPH WHUULWRULDO ERUGHUV DQG SDUWLFXODUO\ WKH
GHPDUFDWLRQRIPDULQHDQGFRDVWDOERUGHUVFRXOGQRWEHIXOO\GHWHUPLQHG7KLVKDVEHHQDOVRDPDWWHU
RI³YLWDOLQWHUHVWV´EHWZHHQWKHPVLQFHWKHHFRQRPLFPLOLWDU\FRPPHUFLDODQGHQYLURQPHQWDOEHQHILWV
DOUHDG\ PDLQWDLQHG RU WR EH PDLQWDLQHG RI WKH WZR 6WDWHV ORFDWHG RQ WKH RSSRVLWH VLGHV RI WKH
$HJHDQ DUH VWULFWO\ LQ TXHVWLRQ 7KH FDVH RI XQIDLU DSSRUWLRQLQJ RI VXFK DGYDQWDJHV WR RQH RU WKH
RWKHU6WDWHZLOOQRGRXEWFUHDWHFRQIOLFWRULQFUHDVHFKDQFHVRIFRQIURQWDWLRQEHWZHHQWKH7ZR
-0RUURZ56LYHUVRQDQG77DEDUHV7KH3ROLWLFDO'HWHUPLQDQWVRI,QWHUQDWLRQDO7UDGH7KH
0DMRU3RZHUV SS6HH9DOO\
$PHULFDQ3ROLWLFDO6FLHQFH5HYLHZ
.RXEL³7UDGHDQG&RQIOLFW´(FRQRPLFVDQG3ROLWLFV/HFWXUH1RWHV
KWWSZZZYZLXQLEHFKJDVWNRXELHFSRGRZQORDGHFSROHFWXUHSGI-XO\
2QFRQIOLFWDQGWUDGHGLVFXVVLRQVVHH5DIDHO5HXYHQ\³7KH7UDGHDQG&RQIOLFW'HEDWH$6XUYH\RI
7KHRU\ (YLGHQFH DQG )XWXUH 5HVHDUFK´
3HDFH (FRQRPLFV 3HDFH 6FLHQFHV DQG 3XEOLF 3ROLF\
9RO1R:LQWHUSS
x D VWDWH ZLOO EH UHOXFWDQW WR WUDGH FDSDFLW\ ZLWK DQRWKHU VWDWH WKDW PD\ XVH LWV
DGGHGZHDOWKWRLQFUHDVHPLOLWDU\FDSDFLW\DJDLQVWLW
$FFRUGLQJO\LWLVGUDZQWKDWSROLWLFDOVWULIHPD\IRUFHWKHVWDWHVWRGHOLPLWWKHLU
IRUHLJQ WUDGH PXWXDOO\ LQ FDVHV ZKHQ FRQIOLFWV FDQ WXUQ LQWR ZDUIDUH 7KH
HFRQRPLFDOO\VWURQJHURQHPLJKWXVHWKLVDGYDQWDJHDVOHYHUDJHRUDGHWHUUHQWIDFWRU
RYHUWKHRWKHU2QWKHRWKHUKDQGDSUREDEOHFRQIURQWDWLRQEHWZHHQWKHVWDWHVPD\
DOVROHDGWKHPWRGHOLPLWWKHLUWUDGHPXWXDOO\VRWKDWWKH\FDQPLQLPL]HWKHSRVVLEOH
ULVNVOLNHO\WRRFFXUGXHWRWKHLQWHUUXSWLRQRIVSHFLILFWUDGHOLNHHQHUJ\VXSSO\IORZ
)RUH[DPSOHZKHQ$6WHLQGUHZDWWHQWLRQWRWKHOLQNEHWZHHQWUDGHDQGFRQIOLFWKHSRLQWHGRXWWKDW
LWZDVLPSRVVLEOHWRFRQVLGHUWUDGHZLWKLQYLVLEOHIHDWXUHVDQGDGGHGWKDWWKHUHZHUHSROLWLFDOFRQFHUQV
ZLWKLQDOOSROLWLFDOVWUDWHJLHVDQGGHFLVLRQV$FFRUGLQJWR6WHLQWKHUHDUHWZRGLPHQVLRQVRIWUDGHEHLQJ
LQFRQWUDGLFWLRQZLWKLQLWVHOIWKDWLVLWFDQSUHYHQWFRQIOLFWEHWZHHQVWDWHVDQGDOVREHWKHFDXVHRI
FRQIOLFW6WLOOVWDWHVFDQXVHWUDGHDVDNLQGRIGHWHUUHQWDQGFRHUFLRQIDFWRU)RUIXUWKHULQIRUPDWLRQRQ
WKH WRSLF VHH $UWKXU $ 6WHLQ ³7UDGHDQG&RQIOLFW8QFHUWDLQW\6WUDWHJLF6LJQDOLQJDQG,QWHUVWDWH
'LVSXWHV´KWWSSVZHEVEVRKLRVWDWHHGXIDFXOW\ESROOLQVERRNVWHLQSGI-XO\
([DPSOH*UHHFH¶VDWWHPSWWRZLGHQLWVWHUULWRULDOZDWHUVOLPLWRQWKH$HJHDQIURPWRPLOHVLV
ERWKDYLRODWLRQRIVRYHUHLJQW\ULJKWVDQGWHUULWRULHVRIFRDVWDOVWDWHVDQGDOVRWKHIDLUVKDULQJRIWKH
HFRQRPLFVRXUFHVRIWKLVVHD7KHUHIRUHLWLVGLIILFXOWWRPDLQWDLQVWDELOLW\LQWKHUHODWLRQVEHIRUHWKH
GHILQLWHGHPDUFDWLRQRIWKHLUERUGHUOLQHVRQWKH$HJHDQZKLFKGHWHUPLQHIXOO\WKHVRYHUHLJQW\OLPLWVRI
7XUNH\DQG*UHHFH
QRW EH ZURQJ WR FRQFOXGH WKDW WKH GHYHORSPHQW LQ WKH HFRQRPLF DQG FRPPHUFLDO
UHODWLRQVEHWZHHQ7XUNH\DQG*UHHFHFRXOGRQO\SDUWO\FRQWULEXWHWRWKHXQUDYHOLQJRI
PDMRU FRQIOLFW LVVXHV EHWZHHQ WKHP DQG QRW IXOO\ ,Q IDFW WKH SHULRG DIWHU
GLVSOD\VWKHVDPHQDWXUHRIWKHLUUHODWLRQV'XULQJWKLVSHULRGWKHWKUHDWFRQFHSWLRQV
ZHUH PLQLPL]HG PXWXDOO\ RU DW OHDVW VWDELOL]HG DQG D FRPPRQ JURXQG EDVHG RQ
FRQILGHQFH DQG VHFXULW\ FRXOG EH FUHDWHG FRQYHQLHQW IRU GLVFXVVLQJ DQG VHDUFKLQJ
IRU ZD\V RI FRPSURPLVH DQG VROXWLRQ RQ FRQIOLFW LVVXHV 'XULQJ WKH ILUVW \HDUV RI
V SRVLWLYH VWHSV KDYH EHHQ WDNHQ UDLVLQJ ZLVKIXO H[SHFWDWLRQV IRU WKH IXWXUH
+RZHYHU LW LV QRW \HW GHILQLWH KRZ PXFK GLVWDQFH LV WDNHQ LQ WKH FRXUVH RI WKH
GLDORJXHDQGGLVFXVVLRQVLQWKLVFRQWH[W,WLVDIDFWWKDWWKHGLDORJXHDWPRVSKHUHLV
PDNLQJ D SRVLWLYH LPSDFW RQ WZR QDWLRQV¶ UHODWLRQV DQG WKH PXWXDO XQGHUVWDQGLQJ
EHWZHHQ WKHP JHQHUDOO\ &RQVLGHULQJ WKLV IDFW LW FDQ EH FRQFOXGHG WKDW HFRQRPLF
UHODWLRQV DQG FRRSHUDWLRQ LV EHLQJ LPSURYHG EHWZHHQ 7XUNH\ DQG *UHHFH WR VRPH
H[WHQW
7+(*(1(5$/9,(:2)7+(5(/$7,216
7XUNLVK*UHHNUHODWLRQVJDLQHGDQHZGLPHQVLRQDWWKHEULQNRIVWFHQWXU\
:LWK FRQVLVWHQW DQG GLIIHUHQW LVVXHV RI FRQIOLFW HPHUJLQJ VWDUWLQJ ZLWK V WKH
GHYHORSPHQWV ZKLFK FUHDWHG SRVLWLYH FKDQJHV LQ WKHLU UHODWLRQV LQ WKH EHJLQQLQJ RI
V FDPH DV ERWK VLGHV EURNH HQGXULQJ WDERRV LQ WKHLU WUDGLWLRQDO DQG UDWKHU
QHJDWLYH DSSURDFK WRZDUGV HDFK RWKHU 7XUNLVK*UHHN UHODWLRQV ZHUH FXVWRPDULO\
FRQFHLYHGDVDFKDLQRIWURXEOHVRPHGLVSXWHVE\DQ\RQHKDYLQJDVOLJKWHVWQRWLRQRI
WKHORQJODVWLQJDQWDJRQLVPEHWZHHQWKHP(YHUVLQFHVZKLOHWRSLFVRIGLVSXWH
EHWZHHQ WKHP FRQVWDQWO\ LQFUHDVHG DOO HIIRUWV RI SHDFH PHGLDWLRQV IDLOHG $W HYHU\
FRQIOLFW VLWXDWLRQ WKH XVXDO VWHSV ZHUH IROORZHG 8SRQ WKH HPHUJHQFH RI D QHZ
GLVSXWHERWKVLGHVXVHGWRGHFODUHWKHLURZQVWDQFHRQWKHPDWWHU7KHWHQVLRQXVHG
WR FOLPE HYHQ PRUH ZKHQHYHU D VLPLODU FDVH RFFXUUHG LQ WKH SDVW DQG WKH WHQVLRQ
ZRXOGJHWFORVHUDQGFORVHUWRFRQIURQWDWLRQ'LSORPDWLFH[FKDQJHRIYLHZVHIIRUWVRI
PHGLDWRUVSHUVXDVLYHDWWHPSWVRIWKLUGSDUWLHVDOOZRXOGIDLO)LQDOO\WKHEORFNOHDGHUV
XVHG WR LQWHUYHQH ZKHQ WKH WZR FDPH WR WKH EULQN RI ZDU 7KH WHQVLRQ XVHG WR EH
IUR]HQDQGWKHLVVXHZDVSXWDVLGHFRPPRQGHFODUDWLRQVXVHGWREHDQQRXQFHGE\
WKH WKLUG SDUWLHV SURPRWLQJ WKH EXLOGLQJ RI &%0V EHWZHHQ WKH WZR DQG D UHOXFWDQW
GLDORJXHSURFHVVXVHGWREHVWDUWHG7KLVZDVWKHSURFHVVDSSOLHGDWHYHU\FRQIOLFW
VLWXDWLRQ\LHOGLQJQRVROLGUHVXOW
7KLVUHSHDWHGSURFHVVDWHYHU\GLVSXWHZKLFKEURXJKW7XUNH\DQG*UHHFHWR
WKH EULQN RI ZDU DJDLQ DQG DJDLQ 7KH IDLOXUH RI DOO GLSORPDWLF DWWHPSWV DQG
PHGLDWLRQV SRLQWLQJ DW VSHFLILF FDVHV LQ RUGHU WR SHUVXDGH WKH RWKHU WRZDUGV
FRQFHVVLRQV PDNHV RQH WKLQN RI D KDELWXDO V\VWHPDWLF DWWLWXGH WKH\ KDYH ERWK
DGRSWHGLQWKHFRXUVHRIWLPH,QIDFWWKHFODLPRIDULJKWVXGGHQO\XVHGWRWXUQLQWRD
PDWWHURILQGHSHQGHQFHRUFODVKRILQWHUHVWVQRPDWWHUKRZLQQRFHQWLWFRXOGEH7KLV
IDFWFDQEHHDVLO\REVHUYHGLQPLQRULW\&\SUXVDQG$HJHDQLVVXHVZKHUHWKHNLQGRI
WKHGLVSXWHLVDQLJQRUHGGHWDLOZKHWKHULWLVSROLWLFDOOHJDORUWHFKQLFDO
)LQDOO\GXULQJWKHVIXQGDPHQWDOFKDQJHVRFFXUUHGRQZKLFK7XUNH\DQG
*UHHFH FRXOG EXLOG XS D JHQXLQH GLDORJXH SURFHVV LQ WKHLU UHODWLRQV +RZHYHU DOVR
GXULQJ WKLV VWDJH QHZ SUREOHPV FDPH XS EHWZHHQ WKH 7ZR LQ DGGLWLRQ WR WKH
WUDGLWLRQDORQHV
x ,Q WKH 81 /DZ RI WKH 6HD ZDV UDWLILHG E\ *UHHFH DQG 7XUNLVK *UDQG
1DWLRQDO $VVHPEO\ 7*1$ LPPHGLDWHO\ GHOLYHUHG DOO ULJKWV WR WKH WKHQ
JRYHUQPHQWRI7XUNH\WRWDNHHYHU\DFWLRQLQFOXGLQJPLOLWDU\LQFDVH*UHHFH
DWWHPSWHG WR HQKDQFH LWV WHUULWRULDO OLPLWV LQ WKH $HJHDQ IURP WR PLOHV
GHSHQGLQJXSRQWKHWHUPVRIWKHQHZ81/DZRIWKH6HD
x 5HOHYDQWWRWKHDERYHFDVHZKHQWKH.DUGDN5RFNVFULVLVEURNHRXWLQ
LWJDYHULVHWRDUJXPHQWVRQWKHVWDWXHRIURFNVDQGLVOHWVRQWKH$HJHDQ6HD
DQG7XUNH\UHIXVHG*DYGRVWREHLQFOXGHGLQWKH1$72PDQHXYHUVFODLPLQJ
WKDWWKHILQDOVWDWXHRIWKHLVOHWVZHUHQRW\HWGHWHUPLQHG
x ,Q &\SUXV *UHHN $GPLQLVWUDWLRQ GHFODUHG WKH ODXQFKLQJ RI 6
5XVVLDQPLVVLOHV\VWHPVRQWKHLVODQGDQGXSRQWKHVWULFWUHMHFWLRQRI7XUNH\
WKH\KDGWRWUDQVSRUWDQGVWRUHWKHPLVVLOHV\VWHPRQWKHLVODQGRI&UHWH
x ,Q ZKHQ WKH 3.. OHDGHU $ gFDODQ ZDV JLYHQ VKHOWHU DW WKH *UHHN
(PEDVV\ LQ .HQ\D1DLUREL *UHHFH¶V FRQQHFWLRQV ZLWK WHUURULVW RUJDQL]DWLRQV
ZHUHUHYHDOHGWRWKHZRUOG
7UDGLWLRQDOFRQIOLFWLVVXHVEHWZHHQ7XUNH\DQG*UHHFHDUHPLQRULW\SUREOHPV&\SUXVDQG$HJHDQ
6HDLVVXHVLQFOXGLQJWHUULWRULDOZDWHUVFRQWLQHQWDOVKHOI),5)OLJKW,QIRUPDWLRQ5HJLRQVDQGQDWLRQDO
DLUVSDFH PLOLWDUL]DWLRQ RI WKH LVODQGV )RU IXUWKHU LQIRUPDWLRQ RQ WKLV WRSLF VHH )XDW $NVX
7UN
<XQDQøOLúNLOHUL $QNDUD6$(0.<D\ÕQODUÕO
7KHIDFWWKDWDOOWKHVHWHQVLRQVGLGQRWWXUQLQWRZDULVGXHWRWKHLQWHUYHQWLRQV
RI DOOLHG UHODWLRQV RI WKH WZR VWDWHV DQG WKH PHGLDWLRQ RI WKH WKLUG DFWRUV 1DPHO\
.DUGDN5RFNVFULVLVGLGQRWWXUQLQWRZDUEHFDXVHRIWKH86$¶VPHGLDWLRQ$OVRWKH
(83DUOLDPHQWGHFODUHGRQ)HEUXDU\DQG&RXQFLORI0LQLVWHUVGHFODUHGRQ
-XO\ WKDW WKH ERUGHUV RI WKH (8 HQGHG XS ZLWK *UHHFH¶V LQWHUQDWLRQDOO\
UHFRJQL]HG ERUGHUV RQ WKH $HJHDQ DQG FDOOHG RQ 7XUNH\ WR FRQVLGHU ,QWHUQDWLRQDO
/DZ
$V IRU ZKHQ WKH VLGHV ZHUH PRUH FDXWLRXV VR DV WR QRW WR JLYH ULVH WR
WHQVLRQ ZKLFK FRXOG LQWHUUXSW WKH HIIRUWV WR EXLOG XS WKH GLDORJXH SURFHVV ZH DOVR
QRWHG WKH VXSSRUW RI WKH WKLUG DFWRUV OLNH WKH 86$ 1$72 DQG WKH (8 $OVR LQ WKLV
FRQWH[W GXULQJ WKH 0DGULG 1$72 VXPPLW LQ -XO\ 0DGULG 'HFODUDWLRQ ZDV
FRQFOXGHG EHWZHHQ 7XUNH\ DQG *UHHFH WKDQNV WR WKH HIIRUWV RI WKH 86 6HFUHWDU\
*HQHUDO0$OEULJKWVLJQHGE\'HPLUHODQG6LPLWLV
)ROORZLQJWKDWVWHSRQ)HEUXDU\7XUNLVK)RUHLJQ0LQLVWHUøVPDLO&HP
SURFODLPHG7XUNH\¶VSURSRVDOWR*UHHFH,QLWLWZDVVXJJHVWHGWKDW&%0VZHUHWR
EHSXWIRUWKDQGFRPPRQWRSLFVRISRVVLEOHFRRSHUDWLRQWREHGHWHUPLQHGDQGLWZDV
DOVRVWUHVVHGWKDWFRRSHUDWLRQRQWKRVHLVVXHVKDGWREHPXWXDOO\SURPRWHG,QIDFW
WKH ODVW SKDVH RI 7XUNLVK*UHHN UHODWLRQV H[KLELWV VXFK UHFRQFLOLDWRU\ HIIRUWV ,Q WKLV
FRQWH[W WKH QHZ HUD RI UHODWLRQV ZLOO DOVR FRQVLGHUDEO\ FRQWULEXWH WR WKH FRQIOLFW
VROXWLRQPHWKRGV)RUWKHWLPHEHLQJFRRSHUDWLRQLVVWDUWHGRQWRSLFVWRWKHFRPPRQ
LQWHUHVW RI ERWK FRXQWULHV UDWKHU WKDQ RQ PDMRU FRQIOLFW LVVXHV $FWXDOO\ VLPLODU
DWWHPSWVZHUHDOVRVWDUWHGIRUPHUO\IURPWLPHWRWLPHEXWQRFRQVLGHUDEOHUHVXOWZDV
UHDFKHG+RZHYHUWKLVWLPHWKHFRQMXQFWXUHLVTXLWHGLIIHUHQWVLQFHWKHUHDUHDJRRG
)RUPRUHLQIRUPDWLRQRQWKHWRSLFVHH)DUXN6|QPH]R÷OX 7UN<XQDQøOLúNLOHULYH%\N*oOHU
,VWDQEXO'HU<D\ÕQODUÕ
2QWKLVWRSLFVHH7KDQRV9HUHPLV³7KH3URWUDFWHG&ULVHV´ *UHHN±7XUNLVK5HODWLRQVLQWKH(UD
QXPEHURIH[SHFWDQWDFWRUVWREHQHILWIURPWKLVUDSSURFKHPHQW&RQVHTXHQWO\LIDQG
ZKHQHYHUWKHVLGHVWU\WRKLQGHUWKHGLDORJXHSURFHVVWKH\NHHSIDFLQJQDWLRQDODQG
LQWHUQDWLRQDOSUHVVXUH
7KH&KDUDFWHURI7XUNLVK*UHHN5HODWLRQVLQWKH$IWHUPDWKRI
%HWZHHQ DQG VHULRXV WHQVLRQV EURNH XS MHRSDUGL]LQJ WKH ³VWDWXV
TXR´ WKH VXVWDLQDELOLW\ RI LQWHUHVWV DQG WKH EDODQFH RI SRZHU EHWZHHQ 7XUNH\ DQG
*UHHFH 7KH SUHVVXUH H[HUWHG WRZDUGV WKH WZR E\ WKH WKLUG SDUWLHV GXULQJ WKHVH
WHQVLRQV SURYHG WKDW WKH VLGH HIIHFWV RI D SRVVLEOH ZDU EHWZHHQ WKH WZR ZRXOG QR
GRXEW\LHOGQHJDWLYHLPSDFWVERWKZLWKLQDQGEH\RQGWKHLUERUGHUV
5HJLRQDO FODVKHV WDNLQJ SODFH LQ WKH %DONDQV DQG 0LGGOH (DVW LQ WKH VDPH
VSDQZHUHQRGRXEWDGGLQJWRWKHVWUDWHJLFVLJQLILFDQFHRIERWK7XUNH\DQG*UHHFH,I
WKHLU UHODWLRQV FRXOG EHUHOLHYHGRIWHQVLRQDQGQRUPDOFRQWDFWVZHUHIRUPHGVXFK
LPSURYHPHQW ZRXOG FUHDWH VXLWDEOH JURXQG IRU VWUXFWXUDO FRQWHPSODWLRQV QRW RQO\ RI
WKH86$EXWDOVRRIWKH(8*UHHFHEHLQJDPHPEHURIWKH(8DQG7XUNH\EHLQJD
FDQGLGDWH PHPEHU RI WKH (8 SOXV EHLQJ D PHPEHU RI WKH (XURSHDQ &RXQFLO DQG
1$72 PHDQW WKH GLVSXWHV FRXOG EH FDUULHG LQWR WKH (8 7KLV FRPSOH[ ZHE RI
UHODWLRQV ZRXOG FUHDWH GLOHPPD IRU WKH (8 PHPEHUV ZKR ZRXOG KDYH WR FKRRVH
ZKLFKVLGHWRVLGHZLWKLQFDVHRIGLVFRUG,QIDFWGXULQJSUHYLRXVGLVSXWHVEHWZHHQ
7XUNH\DQG*UHHFHWKLUGSDUWLHVKDGLQWHUYHQHGDQGIRUZDUGHGVXSSRUWWRRQHVLGH
DQG WKLV EURXJKW RQO\ D WHPSRUDU\ UHPHG\ WR WKH LVVXH UDWKHU WKDQ ILQGLQJ D
SHUPDQHQWVROXWLRQ)RULQVWDQFHDVZDVREVHUYHGGXULQJWKH.DUGDN5RFNVFULVLVLQ
WKH86$GHFODUHGWKDWLWZRXOGGHFOLQHDQ\RIWKHVLGHVLQFDVHWKH\UHYHUWHGWR
PLOLWDU\ DFWLRQ DQG WKLV ZDV D UHDO DQG PDMRU GHWHUUHQW IDFWRU 7KH (8 VLGHG ZLWK
*UHHFHDQGVWDWHGWKDWWKHFDVHZRXOGEHWUHDWHGOLNHD(87XUNH\LVVXHDQGIRUFHG
WKH VLGHV IRU QHJRWLDWLRQ ,Q IDFW WKH (8 ZDV WDNLQJ D RQH VLGHG VWDQFH WR WKH
SUREOHP 1HYHUWKHOHVV WKH UHFHQW FKDQJHLQ WKH LQWHUQDWLRQDO V\VWHP KDV SULPDULO\
SURYLGHG PHDQV IRU ERWK VLGHV WR UHYLVH DQG PRGHUDWH WKHLU QDWLRQDO GULYHV DQG
WKLV OLQH IRU D ORQJ WLPH 2QO\ ZKHQ WKH 'DYRV SURFHVV LQLWLDWHG DIWHU WKH FRQWLQHQWDO VKHOI FULVLV LQ
7XUNLVK*UHHN %XVLQHVV &RXQFLO ZDV IRXQGHG DQG D GLDORJXH SURFHVV FRXOGEHVWDUWHGWKHQ
+HUHZHVKRXOGQRWHWKDWWKHHIIRUWVWRLPSURYHHFRQRPLFFRRSHUDWLRQZHUHQRWPHDQWWRVROYHPDMRU
FRQIOLFW LVVXHV EXW DW OHDVW WR EXLOG XS PXWXDO FRQILGHQFH 8QIRUWXQDWHO\ WKH DWWHPSWV WR HQKDQFH
HFRQRPLFFRRSHUDWLRQQHLWKHUJDYHIUXLWIXOUHVXOWVQRUFRXOGDYRLGPRUHGLVSXWHVWRFRPHXS
LQVSLUDWLRQVLQWKHLUUHODWLRQVPXWXDOO\7KHPLOLWDU\DQGSROLWLFDOVWUDWHJ\RIWKH&ROG
:DUHUDKDVEHHQUHSODFHGZLWKHFRQRPLFDODQGSROLWLFDOFRRSHUDWLRQHIIRUWVZKLFK
KDYHFRQWULEXWHGWRPDLQWDLQDQGVXVWDLQVWDELOLW\LQWKHUHODWLRQV,QWKLVFRQWH[WWKH
(8 6(&, DQG WKH 6WDELOLW\ 3DFW FDQ EH FRXQWHG DPRQJ WKH HIILFLHQW DWWHPSWV
IRXQGHGWREXLOGXSUHJLRQDOFRRSHUDWLRQDQGVROLGDULW\EDVHGRQVWURQJIRXQGDWLRQV
WRUHDFKVWUXFWXUDOGLPHQVLRQV
8SRQ WKH GHFODUDWLRQ RI 7XUNH\¶V FDQGLGDWH PHPEHUVKLS WR WKH (8 DW WKH
+HOVLQNL 6XPPLW LQ 'HFHPEHU *UHHFH VKRZHG JRRG LQWHQWLRQV WR VROYH WKH
WRSLFV RI GLVSXWH WKURXJK PHWKRGV SURSRVHG E\ WKH (8 +RZHYHU *UHHFH DOVR
VWDUWHGGHFODULQJWKDWWKH\GLGQRWGLVUHJDUGRWKHUSHDFHVHHNLQJDWWHPSWVVXFKDV
GLDORJXH DQG GHEDWH ZLWKLQ WKH QHJRWLDWLRQ SURFHVV 7KHVH ZHUH DOO VLJQV RI D
VLJQLILFDQWSROLF\FKDQJHDQGVLPLODUFRPPHQWVZHUHDOVRPDGHE\7XUNH\IDYRULQJ
UHFRQFLOLDWLRQHIIRUWVDQGELODWHUDOQHJRWLDWLRQV+RZHYHU7XUNH\DOVRH[SUHVVHGWKDW
,&- FRXOG EH WKH ILQDO DXWKRULW\ WR EH FRQVXOWHG IRU WKH VROXWLRQ RI FRQIOLFW LVVXHV
%HIRUHWKH+HOVLQNL6XPPLW7XUNH\KDGDOUHDG\LWHUDWHGWKDWWKHUHPDLQLQJSRLQWVRI
GLVDJUHHPHQW FRXOG EH WDNHQ WR WKH ,&- DIWHU DOO RWKHU SRLQWV ZHUH VHWWOHG WKURXJK
GLDORJXH1HYHUWKHOHVVWKLVFRPPLWPHQWZDVZULWWHQFRQILUPHGE\7XUNH\GXULQJWKH
+HOVLQNL 6XPPLW ZKLFK GUHZ *UHHFH WRZDUGV GLDORJXH DQG 7XUNH\ WRZDUGV WKH ,&-
DOWHUQDWLYH
)RUH[DPSOH3ULPH0LQLVWHU(FHYLWGXULQJDQLQWHUYLHZWRWKH*UHHN0HJD79UHPDUNHG ³7HQVLRQLV
JURZLQJ LQ WKH UHJLRQ VLQFH *UHHFH LV PDNLQJ DWWHPSWV DJDLQVW WKH WHUULWRULDO LQWHJULW\ DQG LQWHUQDO
DIIDLUVRI7XUNH\/LNHLQWKHFDVHRI$JDWKHQLVLRQO\SROLWLFLDQVFDQEULQJVROXWLRQVWRWKHSUREOHPVQRW
MRXUQDOLVWV ,Q FDVH *UHHFH VWRSV WHUURULVW RUJDQL]DWLRQV WR EH DFWLYH LQ *UHHFH ZKLFK WKUHDWHQV
,Q IDFW WKH ODVW TXDUWHU RI V FRPSULVHG D WXUQLQJ SRLQW WR 7XUNLVK*UHHN
UHODWLRQV$OWKRXJKDVHULHVRIWHQVLRQVZHUHIDFHGLQDVKRUWSHULRGDGLDORJXHDQG
³GHWHQWH´SURFHVVZDVLQLWLDWHG:KLOHRQRQHKDQGWKH&%0VZHUHEURXJKWWROLIHRQ
WKH RWKHU DOWHUQDWLYH VROXWLRQV FRXOG EH EURXJKW XS DQGEDVLF FRQIOLFW LVVXHV ZDV
VWDUWHGWREHGLVFXVVHG7KH(8ZDVFRQVLGHUHGDVXLWDEOHJURXQGWRIDFLOLWDWHVXFK
DWWHPSWV7XUNH\DQG*UHHFHWULHGWRZRUNRXWWKHLUSUREOHPVLQOLQHZLWKFRQGLWLRQV
ZKLFKWKH(8LPSRVHGWKHP,QWKHPHDQWLPHWKHHDUWKTXDNHVZKLFKVWUXFN7XUNH\
DQG *UHHFH RQH DIWHU DQRWKHU SURYHG WKDW WKH WZR QDWLRQV VWLOO FDUULHG SHDFH
LQLWLDWLYHV WRZDUGV HDFK RWKHU DQG WKDQNV WR WKH PHGLD LQ ERWK FRXQWULHV WKH
SROLWLFLDQV ZHUH GUDZQ WRZDUGV SHDFHIXO VROXWLRQV DQG WR DELGH ZLWK WKH GLDORJXH
SURFHVV
7KH6LPLWLV*RYHUQPHQW¶VGHWHUPLQDWLRQWRLPSURYHUHODWLRQVZLWK7XUNH\ZDV
DVWUDWHJLFFKRLFHDQGWKLVFKRLFHEURXJKWWRJHWKHUWKHIROORZLQJDGYDQWDJHV
x )URPWKHDVSHFWRIGRPHVWLFSROLF\JDLQVGLDORJXHZLWK7XUNH\KDVEHHQDQ
HPLQHQW IDFWRU IRU 6LPLWLV *RYHUQPHQW WR LQFUHDVH WKHLU VXSSRUW LQ WKH SXEOLF
RSLQLRQ
x 6LPLODUO\ 6LPLWLV GXULQJ KLV OHDGHUVKLS VWUXJJOH ZLWK $ 3DSDQGUHRX LQ
3$62.IRUWLILHGKLVSRVLWLRQDPRQJKLVSROLWLFDOULYDOVDQGDOVRFRXOGPDQDJHWR
KROGEDFNWKHUHDFWLRQRIIDQDWLF7XUNH\UHSUREDWHV
7XUNH\¶V8QLWDULDQ6WDWHDGLDORJXHSURFHVVFDQEHVWDUWHGDQGUHODWLRQVFDQZDUPXSVRRQ%XWWKLV
GLDORJXH VKRXOG EH VWDUWHG RQ DOO LVVXHV *UHHFH LV DVNLQJ WR JR WR ,&- RQ DOO SRLQWV RI FRQIOLFW
+RZHYHUZHFDQQRWGRWKDWULJKWDZD\HYHQLIZHZDQWWREHFDXVHILUVWZHVKRXOGGHWHUPLQHWRJHWKHU
H[DFWO\ RQ ZKDW LWHPV ZLWKLQ WKH LVVXHV ZH GLIIHU´ 0XUDW øOHP ³(FHYLW¶WHQ $WLQD¶\D µ'RVWFD¶ 8\DUÕ´
&XPKXUL\HW -XQHS
0RUHRYHU SDUWLFXODUO\ DIWHU gFDODQ ZDV VHQW DZD\ E\ 6\ULD ZKHQ KH DVNHG IRU DV\OXP IURP
*UHHFH LQFOXGLQJ WKH 3$62. JURXS LQ WKH SDUOLDPHQW DOO SROLWLFDO SDUWLHV DSSURYHG WKH VXSSRUW RI
gFDODQ DJDLQVW 7XUNH\ 7KH WHQVLRQ ZDV HOHYDWHG EHWZHHQ 7XUNH\ DQG *UHHFH DQG GXH WR WKH
VXSSRUW RI gFDODQ *UHHFH ZDV GHILQHG DV D VWDWH VXSSRUWLQJ LQWHUQDWLRQDO WHUURULVP $OO WKHVH SXW
6LPLWLVLQWRDYHU\KHOSOHVVSRVLWLRQDQGKLVSROLWLFDOPRYHPHQWDUHDZDVKLJKO\GHOLPLWHG8QGHUWKHVH
FLUFXPVWDQFHVZKHQWKHGLUHFWWLHVRI)RUHLJQ0LQLVWHU3DQJDORV,QWHUQDO0LQLVWHU3DSDGDSXORVDQG
WKH3XEOLF3URJUHVV0LQLVWHU3HWVDOQLNRVZHUHXQFRYHUHGLQYHVWLJDWLRQVZHUHKHOGDJDLQVWWKHPDQG
6LPLWLV KDG WR RXVW WKHP IURP WKH JRYHUQPHQW )RU D GHWDLOHG DQDO\VLV RQ WKH VDPH HYHQWV VHH
x *UHHFH HQWHUHG WKH (8 FRPPRQ FXUUHQF\ XQLW (&8 ZKLFK HDVHG LWV
VWDELOLW\HIIRUWVIRUVXVWDLQLQJHFRQRPLFGHYHORSPHQW7KHLQLWLDWLRQRIWKHGLDORJXH
SURFHVV KHOSHG *UHHFH WR DGRSW D VWURQJHU VWDQFH DJDLQVW FULWLFLVPV IURP WKH
(886$D[LVSDUWLFXODUO\RQWHUURULVPLVVXHV
x 6XLWDEOH EDFNJURXQG LV IRUPHG WR GHOLPLW LWV FRVWO\ GHIHQVH EXGJHW WKDW ZDV
SXWWLQJ RYHU ZHLJKW RQ WKH JHQHUDO EXGJHW WR FRYHU XS WKH SUHFDXWLRQV OLNH
H[FHVVLYHDUPDPHQWQHHGHGLQFDVHRIDWKUHDWIURPWKHLUQHLJKERU7XUNH\
2Q WKH RWKHU KDQG 7XUNH\ PDGH XVH RI WKH VDG EXW DOVR V\PSDWKHWLF
DWPRVSKHUH FUHDWHG E\ WKH HDUWKTXDNHV DQG FRXOG SHUVXDGH *UHHFH WRZDUGV
GLDORJXH 'XULQJ WKH gFDODQ FULVLV LW ZDV DSSDUHQW WKDW *UHHFH KDG UHOHYDQFH ZLWK
WKH LVVXH DQG HYHQWXDOO\ *UHHFH ZDV LQFOXGHG LQ WKH OLVW RI FRXQWULHV VXSSRUWLQJ
WHUURULVP)LQDOO\6LPLWLVGXHWRWKHJRYHUQPHQW¶VSXVKDQG7XUNH\¶VZLVKSOXVWKH
LQWHUQDWLRQDO SXEOLF RSLQLRQ¶V SUHVVXUH GHFODUHG WKDW WKH\ ZHUH UHDG\ IRU GLDORJXH
ZLWK7XUNH\
-RVKXD %ODFN ³*UHHN 'LSORPDF\ DQG WKH +XQW IRU $EGXOODK gFDODQ´
KWWSZZZZZVSULQFHWRQHGXaFDVHVSDSHUVJUHHNGLSORPDF\KWP0DUFK
)RUGHWDLOHGLQIRUPDWLRQRQWKHgFDODQ¶VFDSWXUH3..DQG*UHHFHUHODWLRQVVHH0XUDW<HWNLQ .UW
<HQL +DPOHOHU +DQJL 3.." $QNDUD hPLW <D\ÕQFÕOÕN 1XU %DWXU <UHNWHQ *OHUHNWHQ
<UGP øVWDQEXO'R÷DQ.LWDS
*UHHFH¶V DSSURDFK RQ WHUURULVP ZDV IUHTXHQWO\ FULWLFL]HG LQ WKH 86$ )RUHLJQ 0LQLVWU\¶V \HDUO\
UHSRUWV RQ WHUURULVP $OVR VHH ³3DWWHUQV RI *OREDO 7HUURULVP (XURSH 2YHUYLHZ´
KWWSZZZVWDWHJRYZZZJOREDOWHUURULVPUHSRUWHXURSHKWPO 2FWREHU )RU WKH \HDU
UHYLHZVHHKWWSZZZVWDWHJRYVFWUOVSJWUSWLQGH[FIP"GRFLG 0D\
3UHVLGHQW'HPLUHOGHILQHG*UHHFHDVD³URJXHVWDWH´ZKHQgFDODQZDVNHSWLQWKH*UHHN(PEDVV\
LQ1DLUREL.HQ\D+HPDGHDFDOOWRWKHZRUOGWRGRWKHVDPHVLQFHKHVDLG ³*UHHFHLVFDXJKWRQWKH
DQGZDUQHGWKHP
YHU\DFWRIWHUURULVPDQGLVRQHRIWKHJUHDWHVWVXSSRUWHUVRIWKH3..WHUURULVP´ ³,Q
FDVH *UHHFH JRHV RQ ZLWK VXFK WHUURULVW DWWLWXGH ZH ZLOO KDYH WR XVH RXU OHJDO VHOIGHIHQVH ULJKW´
³6XFK D VWDWH FDQ RQO\ EH FDOOHG DV URJXH VWDWH EXW ZH VWLOO ZLVK WR JLYH WKHP DQRWKHU FKDQFH DQG ,
RQFH PRUH LQYLWH *UHHN DXWKRULWLHV WR EH PRUH FLYLOL]HG DQG DFW LQ DFFRUGDQFH ZLWK LQWHUQDWLRQDO OHJDO
FRPPLWPHQWV OLNH D VWDWH REVHUYLQJ DQG UHVSHFWLQJ ODZ VKRXOG GR +RZHYHU LI WKH\ KDSSHQ WR JR RQ
ZLWK WKHLU XQODZIXO DWWLWXGH ZH ZLOO DOVR KDYH WR FRQVXOW WR RXU SUHVHUYHG VHOIGHIHQVH ULJKWV E\ WKH
0XVWDID%DOED\³$WLQD7HU|U'HVWHNoLVL´
LQWHUQDWLRQDO ODZ´ &XPKXUL\HW )HEUXDU\SS
³$WLQD¶\D6DYDú8\DUÕVÕ´ )HEUXDU\S
0LOOL\HW
)URPDQRWKHUDQJOHLQ*UHHFHWKHJRYHUQPHQWLQSRZHUPLJKWEHKHDGLQJWR
VXVWDLQ SROLWLFDO VWDELOLW\ WKURXJK GLVVROYLQJ WKH FRQIOLFW LVVXHV EHWZHHQ 7XUNH\ DQG
*UHHFH ZKLFK VHUYHV ZLWKLQ WKH *UHHN JRYHUQPHQW¶V IUDPHZRUN RI
QDWLRQDOLQWHUQDWLRQDO LQWHUHVWV ,Q WKH PHDQ WLPH *UHHFH QHHGHG WR JHW ULG RI WKH
HQPLW\DJDLQVW7XUNH\ZKLFKZDVWRWDOO\ELQGLQJLWVHOILQGRPHVWLFDQGIRUHLJQSROLF\
PRYHPHQWV 0RUHRYHU WKLV HQPLW\ SURFHVV KDG EHJXQ WR GHOLPLW *UHHFH¶VUHODWLRQV
ZLWKWKHWKLUGFRXQWULHVWRR
*UHHFH¶V QHJDWLYH DWWLWXGH WRZDUGV 7XUNH\¶V DFFHVV WR WKH (8 VKRZHG LQ
DFWLRQVVXFKDVYHWRLQJILQDQFLDODLGSDFNDJHVIRU7XUNH\JDYH*UHHFHDQLPDJHRI
D WURXEOHPDNHU PHPEHU 2Q WKH RWKHU KDQG 86$¶V EXLOGLQJ VWURQJHU WLHV ZLWK
SURSHUWLPLQJWRZDUGV7XUNH\ZKHQZKHQHYHUWKHFRXQWU\LVUHMHFWHGE\WKH(8DOVR
FUHDWHGDSHUFHSWLRQWKDWWKH86$ZDVVLGLQJZLWK7XUNH\DJDLQVW*UHHFH7KH86$
LQFUHDVHG LWV SUHVVXUH WRZDUGV *UHHFH LQ WKLV UHVSHFW 7KH SUHVVXUH UHJDUGHG
*UHHFH¶VSROLF\LQWKH%DONDQVDOVR,WEHJDQWREHGLVFXVVHGDIWHU*UHHFH¶VQHJDWLYH
LGHQWLW\ ZDV WDNHQ XS E\ 1$72 FLUFOHV WRR $V IURP WKH HFRQRPLF GLPHQVLRQ
*UHHFH¶V HIIRUWV IRU HQWHULQJ WKH (XURSHDQ FRPPRQ FXUUHQF\ XQLRQ OHG *UHHFH WR
UHPRYHLWVYHWRRQ7XUNH\¶VFDQGLGDF\WRWKH(8
'XULQJ WKH FRQILGHQFHEXLOGLQJ SHULRG IROORZLQJ WKH FDSWXUH RI gFDODQ LW ZDV H[SUHVVHG WKDW
*UHHFHKDVVWDUWHGRYHUFRPLQJWKHWKUHDWFRQFHSWLRQVERXQGWR7XUNH\DQGLWZDVVWUHVVHGWKDWWKH
WZR6WDWHVVKRXOGGHFUHDVHWKHLUGHIHQVHEXGJHWVPXWXDOO\+RZHYHULWZRXOGEHWRRVRRQWRFRQVLGHU
D FKDQJH LQ VWUDWHJLF GLPHQVLRQV GXH WR QDWLRQDO LQWHUHVWV DQG VHFXULW\ SULRULWLHV EHFDXVH
QHJRWLDWLRQV RQ EDVLF FRQIOLFW LVVXHV KDYH QRW VWDUWHG \HW UHOHYDQW WR WKH VRYHUHLJQW\ ULJKWV DQG
QDWLRQDOLQWHUHVWRIERWKFRXQWULHV
,W LV D IDFW WKDW *UHHFH LV QRW WKH RQO\ LPSHGLPHQW LQ WKH (87XUNH\ UHODWLRQV )RU D GLIIHUHQW
DQDO\VLV RQ WKH LVVXH VHH 0HKPHW 8÷XU øVWDQEXO (YHUHVW <D\ÕQODUÕ
$YUXSD %LUOL÷L YH 7UNL\H
%HIRUHWKH+HOVLQNL6XPPLWLQLQ/X[HPEXUJ86$KDGZDUQHG*UHHFHWRUHYLHZLWVQHJDWLYH
DSSURDFK WRZDUGV 7XUNH\¶V (XURSHDQ LGHQWLW\ 2Q WKH VDPH WRSLF VHH 1LHOV .DGULW]NH ³*UHHFH¶V
(DUWKTXDNH 'LSORPDF\´ /H 0RQGH -XQH KWWSZZZPRQGH
'LSORPDWLTXH
:KLOH RQ RQH KDQG *UHHFH ZDV IUHTXHQWO\ PHQWLRQLQJ LQ IRUPDO GHFODUDWLRQV
WKDW WKH\ GLG QRW UHMHFW 7XUNH\¶V IXOO PHPEHUVKLS WR WKH (8 RQ WKH RWKHU KDQG
ZKHQHYHUUHDOL]DWLRQRIWKHVDPHLVVXHZDVGLVFXVVHGWKH\VXJJHVWHGWKDWVWUXFWXUDO
IHDWXUHV RI 7XUNH\ GLG QRW ILW LQWR WKH (8 FULWHULD DQG WKH\ WHQGHG WR OLQN WKH
SRVVLELOLW\RIPHPEHUVKLSWRWKHGHYHORSPHQWVLQOLQHZLWKWKH(8FULWHULD,QIDFWWKLV
DWWLWXGH ZDV UHSHDWHG E\ *UHHN DXWKRULWLHV GXULQJ WKH +HOVLQNL 6XPPLW RQ
'HFHPEHUDQGLWZDVSUHFDULRXVO\FRQVLGHUHGZKHWKHU*UHHFH¶VYHWRFRXOGEH
DYRLGHG RUQRW+RZHYHU*UHHNYHWRZDVDYRLGHGDIWHUWKHYLHZVRIERWKFRXQWULHV
FRXOG EH GLVVROYHG RQ D FRPPRQ JURXQG 6KRUWO\ EHIRUH WKH VXPPLW WKH *UHHN
)RUHLJQ 0LQLVWHU * 3DSDQGUHRX KDG VDLG ³$OPRVW HYHU\RQH DFFHSWV 7XUNH\¶V
FDQGLGDF\EXW7XUNH\LVH[WUHPHO\HDJHU2XUGLDORJXHZLWK7XUNH\RQWKH(8KDV
UHDFKHG WR WKH ILQDO VWHS :KDWHYHU WKH UHVXOW RI WKH +HOVLQNL 6XPPLW ZLOO EH ZH
VKRXOGHQKDQFHZLWKIULHQGO\FRRSHUDWLRQLQDZD\WKDWZLOOEHWRWKHPXWXDOEHQHILWRI
ERWKQDWLRQV«
7XUNH\ LV ERXQG WR PDLQWDLQ WKH UHTXLUHG VWDQGDUGV RI WKH (8 8QWLO WKLV
PRPHQW ZH FRXOG QRW VHWWOH RQ RXU SUREOHPV +RZHYHU LI 7XUNH\ LV JUDQWHG WKH
FDQGLGDF\SRVLWLRQZHVKDOOEHSOHDVHGZLWKLW(8PHPEHUVKLSLVDJRRGFKDQFHIRU
7XUNH\DVZHOODVEHDULQJDUHIRUPFKDUDFWHU,KRSHDSRVLWLYHUHVXOWFDQEHUHDFKHG
DWWKH+HOVLQNL6XPPLW,I7XUNH\EHFRPHVDFDQGLGDWHWKH\ZLOOKDYHWRFRQIRUPWR
WKH&RSHQKDJHQ&ULWHULDRQ&\SUXVDQG$HJHDQLVVXHV´7XUNLVK)RUHLJQ0LQLVWHU
DOVR PDGH D VSHHFK LQ WKH IROORZLQJ FRQWHQWV EHIRUH WKH VXPPLW³,QFDVH WKH (8
UHIXVHV 7XUNH\ DQG GLYLGHV $HJHDQ LQWR WZR LW ZLOO SRWHQWLDOO\ FUHDWH D FRQWURYHUV\
EHWZHHQ 7XUNH\ DQG *UHHFH 7KHUHIRUH ZKLOH UHDFKLQJ D GHFLVLRQ WKH (8 VKRXOG
FRQVLGHUWKLV:HGRQRWH[SHFWH[WUDV\PSDWK\IURPDQ\RQHZHRQO\H[SHFWWKDWWKH
VDPHFRQGLWLRQVDVNHGIURPRWKHUVWRJRIRUXVWRR,WLVLQFOXGHGLQWKH$JHQGD
RI WKH (8 WKDW ZH ZLOO KDYH WR FRQIRUP WR WKH VDPH FRQGLWLRQV %XW LI GLIIHUHQW
UHVHUYDWLRQV DUH SXW DQG H[WUD FRQGLWLRQV DUH UHTXLUHG MXVW IRU 7XUNH\¶V FDQGLGDF\
WKLVFDQQRWEHDFFHSWDEOH´
7KHVH GHFODUDWLRQV PDGH EHIRUH WKH 6XPPLW UDLVHG KRSHV IRU JURXQGV IRU
QHJRWLDWLRQ DQG LW ZDV H[SHFWHGWKDW*UHHFHZRXOGQRWIRUZDUGLWVYHWR,QIDFWRQ
'HFHPEHU ZKHQ GLVFXVVLRQV IRFXVHG RQ SUREOHPV EHWZHHQ 7XUNH\ DQG
*UHHFH VXFK WRSLFV ZHUH WULHG WR EH SDFLILHG DQG LW ZDV FRQFOXGHG RQ 7XUNH\¶V
FDQGLGDF\ ,Q WKH FRQFOXGLQJ GRFXPHQW LW ZDV LQGLFDWHG WKDW 7XUNH\ DQG *UHHFH
VKRXOGUHVROYHWKHGLVSXWHVDPRQJWKHPXQWLODVLWZDVDOUHDG\LQFOXGHGLQWKH
$JHQGD GRFXPHQW ,Q FDVH WKH\ FDQQRW UHDFK WR D FRQVHQVXV E\ WKHQ WKH
LVVXHV ZRXOG EH WDNHQ XS DW WKH (XURSHDQ &RXQFLO WKH VDPH \HDU +RZHYHU WKLV
WLPLQJ JDYH ULVH WR GLIIHUHQW LQWHUSUHWDWLRQV *UHHFH UHPDUNHG WKDW LV WKH
GHDGOLQHIRUWKHFRQIOLFWLVVXHVWREHWDNHQWRWKH,&-,QWKLVFRQWH[W6LPLWLVVDLG³:H
ZLVK WR VHWWOH WKH FRQWLQHQWDO VKHOI LVVXH ZLWK 7XUNH\ DQG , GR QRW WKLQN WKDW RWKHU
GLVSXWHVZLOOFRPHXSLQWKHFRXUVHRIWLPHEXWLILWGRHVZHFDQFRQVLGHUWKRVHDOVR
7KHUHLVTXLWHDORQJWLPHXQWLODQGZHH[SHFWWRWDNHSRVLWLYHVWHSVXQWLOWKHQ,I
WKHUHDUHVWLOOSRLQWVRIGLVSXWHLQWKHQZHFDQFRQVXOWWR,&-´
7XUNLVK)RUHLJQ0LQLVWHU&HPDOVRPDGHFRPPHQWVLQWKHVDPHFRQWH[W³WKH
LVQRWWKHGHDGOLQHWRJRWRWKH,&-EXWDWLPHZKHQWKH(8ZLOOUHYLHZWKHFDVH
7KH (8 KDV SXW WKLV FOHDUO\ DQG IRUPDOO\ :H UHSHDWHG PDQ\ WLPHV WKDW ZH ZRXOG
WDNH WKH FRQIOLFW SRLQWV WR WKH ,&- DIWHU DOO QHJRWLDWLRQ ZD\V DUH WULHG :H KDYH
DOZD\V FKRVHQ WR VROYH WKH GLVSXWHV WKURXJK GLVFXVVLRQ DQG QHJRWLDWLRQ 7KH WH[W
DOVRFRQVLGHUVWKHSRVVLELOLW\RIGLVFXVVLRQ´
7KH$JHQGDGRFXPHQWFRQFOXGHGLQ-XO\GHQRWHVDOOSURFHGXUHV
LQ OLQH ZLWK WKH (8 HQODUJHPHQW SURFHVV LQFOXGHV DUWLFOHV UHIHUULQJ WR ERUGHU
GLVSXWHV ZKLFK DOO FDQGLGDWHV KDYH WR VHWWOH EHIRUH WKHLU IXOO DFFHVV LQWR WKH (8
$FFRUGLQJWRWKHVDLGWH[W³(QODUJHPHQWGRHVQRWPHDQWKHERUGHUGLVSXWHVZLOOEH
WUDQVIHUUHG WR WKH (8 (QODUJHPHQW HIIRUWV DUH H[SHFWHG WR FUHDWH SRVLWLYH DQG
³/LSRQQHQ¶LQ(FHYLW¶H7DULKL0HNWXEX´ 'HFHPEHUS
+UUL\HW
PHQWLRQHG LQ WKH IRXUWK SDUDJUDSK LV WKH WLPH ZKHQ WKH (XURSHDQ &RXQFLO ZLOO UHYLHZ WKH
VLWXDWLRQDQGLVQRWWKHGHDGOLQHWRWDNHWKHGLVSXWHVWRWKH,&-
$V IRU WKH &\SUXV LVVXH WKH (8 SUHIHUV D SROLWLFDO VROXWLRQ 'XULQJ WKH GLVFXVVLRQV IRU &\SUXV WR
EH IXOO PHPEHU WR WKH (8 DOO UHOHYDQW IDFWRUV ZLOO EH FRQVLGHUHG EHIRUH WKH &RXQFLO FRPHV WR D
HPSRZHULQJGULYHVIRUWKHVWDWHVWRVHWWOHWKHLUERUGHUGLVSXWHV6RPHVWDWHVZKLFK
DSSOLHGIRUFDQGLGDF\VWLOOKDYHGLVSXWHVEHWZHHQWKHPRUZLWKWKHWKLUGFRXQWULHVRQ
YDULRXV LVVXHV 7KH &RPPLVVLRQ UHTXLUHV WKDW WKH VWDWHV VKRXOG VHWWOH DOO PDMRU
ERUGHUFRQIOLFWVEHWZHHQWKHPRUZLWKWKHWKLUGFRXQWULHV7KLVDFTXLUHVSULRULW\EHIRUH
DGDSWDWLRQ2QWKHFRQWUDU\WKHVLGHVVKRXOGDJUHHWRWDNHWKHLUGLVSXWHWRWKH,&-
«$OOFRXQWULHVVKRXOGFRQILUPLQDGYDQFHWKDWLQFDVHVXFKDGLVSXWHLVIDFHG
LQ WKH IXWXUH WKH\ ZLOO EH UHDG\ WR DFFHSW WKH FRPSXOVRU\ MXGJPHQW DXWKRULW\ RI WKH
,&-SUHFRQGLWLRQDOO\´
&RQVLGHUHG LQ WKLV FRQWH[W $JHQGD UHTXLUHV WKDW 7XUNH\ VHWWOH DOO LWV
GLVSXWHV ZLWK *UHHFH DQG LQ FDVH RI DUELWUDWLRQ DFFHSWV XQFRQGLWLRQDOO\ WKH SRZHU
DQGWKHDXWKRULW\RI,&-DQGZLOODFWLQDFFRUGDQFHZLWKWKHYHUGLFWRIWKH&RXUW:KLOH
WKH(8PHPEHUVKLSLVLQTXHVWLRQWKHSUHYDLOLQJFRQIOLFWLVVXHVEHWZHHQ7XUNH\DQG
*UHHFH DUH $HJHDQ LVVXHV SDUWLFXODUO\ FRQWLQHQWDO VKHOI GUDZLQJ EDFN RI 7XUNLVK
WURRSV IURP &\SUXV DQG 7XUNH\¶V UHMHFWLRQ IRU &\SUXV EHLQJ D IXOO PHPEHU WR WKH
(8 'XULQJ KLV YLVLW WR 7XUNH\ RQ -DQXDU\ * 3DSDQGUHRX PDGH
VWDWHPHQWVDERXW&\SUXVPHDQLQJWKDWWKHIXOOPHPEHUVKLSRI1RUWKHUQ&\SUXVWR
WKH (8 ZLOO RFFXU EHIRUH 7XUNH\ 0RUHRYHU 3DSDQGUHRX UHPDUNHG ³7KH
PHPEHUVKLSRI1RUWKHUQ&\SUXVZLOOEHDGYDQWDJHRXVIRU7XUNH\´³7XUNLVK&\SULRWV
ZLOOEHUHSUHVHQWHGLQWKH(87XUNLVKZLOOEHDQRIILFLDOODQJXDJHRIWKH8QLRQDQG
7XUNH\ZLOOJDLQIDPLOLDULW\LQWKH8QLRQDQGWKLVZLOOVHUYHOLNHDVLGHURDGRQWKHZD\
WRLWVDFFHVV´7XUNH\KDGDOUHDG\GHFODUHGWKDWLQWKHFRUHWKDWVKHGLGQRWREMHFW
SS
&\SUXV*UHHN$GPLQLVWUDWLRQJDLQHGIXOOPHPEHUVKLSWRWKH(8GXULQJWKH6XPPLWRQ0D\
%HIRUH WKLV DFFHVV D UHIHUHQGXP ZDV KHOG ERWK RQ WKH 7XUNLVK DQG *UHHN VLGH RI WKH LVODQG 7KH
*UHHN&\SULRWVUHIXVHGWKH³$QQDQ3ODQ´SUHSDUHGIRUWKHXQLILFDWLRQRIWKHLVODQGE\RIWKH
YRWHVDQG7XUNLVK&\SULRWVDFFHSWHGWKHSODQE\RIWKHYRWHV'HVSLWHWKLVUHVXOW*UHHN&\SUXV
JDLQHGPHPEHUVKLSDQGWKH&\SUXVTXHVWLRQWXUQHGLQWRD(8LVVXH
³3DSDQGUHX7DEXODUÕ<ÕNDOÕP´ &XPKXUL\HW -DQXDU\S
WRWKH,&-DOWHUQDWLYH,QWKHRSLQLRQRI7XUNH\WKHVLGHVVKRXOGVWDUWWKHQHJRWLDWLRQ
SURFHVV EHIRUH WKDW VWDJH ILUVW WKH\ VKRXOG ILQG RXW SUHFLVHO\ RQ ZKDW SRLQWV WKH\
FDQQRW UHDFK D FRQVHQVXV ZKHWKHU WKHVH SUREOHPV H[LVW LQ UHDOLW\ DQG LI VR WKH
HVVHQFHDQGWKHQDWXUHRIWKHSUREOHPDQGWKHQWDNHWKRVHLWHPVWRWKH,&-,QIDFW
*UHHFH LV GHOLPLWLQJ WKH FRQIOLFW LVVXHV WR FRQWLQHQWDO VKHOI RQO\ DQG FDOOV LW DV WKH
RQO\ PDWWHU WR EH WDNHQ WR ,&- +RZHYHU 7XUNH\ DSDUW IURP WKHFRQWLQHQWDO VKHOI
FRQVLGHUVWKHSUREOHPVLQWKH$HJHDQDVH[SDQVLRQRIWHUULWRULDOZDWHUVOLPLWVRI),5
UHJLRQV PLOLWDUL]DWLRQ RI WKH LVODQGV DQG WKH XQGHWHUPLQHG VWDWXH RI WKH LVOHWV DQG
URFNV
:KHQWDNHQXSIURPDQRWKHUSRLQWRIYLHZZKHWKHUWKHFRQIOLFWPDWWHUVFDQEH
VHWWOHGLQWKHIRUHVHHQWLPHVSDQRUQRWWKLVLVFORVHO\UHOHYDQWWRWKHDWWLWXGHRIWKH
VLGHVRQWKH,&-LVVXHDQGWKHIXWXUHDQGWKHVXFFHVVRIWKH&RPPRQ'HIHQVHDQG
)RUHLJQ3ROLF\WKDWWKH(8LVWU\LQJWREXLOGXS,WVKRXOGEHQRWHGWKDWWKHGHFLVLRQRI
WKH (XURSHDQ 3DUOLDPHQW EDFNLQJ *UHHFH GXULQJ WKH .DUGDN 5RFNV FULVLV RI
JLYHV DQ LGHD DV WR WKH GLUHFWLRQ RI WKHLU FKRLFH LQ FDVH RI D FRQWURYHUV\ EHWZHHQ
7XUNH\ DQG *UHHFH 6LPLODUO\ 1RUWKHUQ &\SUXV EHLQJ DFFHSWHG DV UHSUHVHQWLQJ WKH
ZKROHLVODQGDQGLWVDFFHVVLQWRWKH(8DVWKHRQO\&\SUXVLGHQWLW\LVDQRWKHUKLQWRI
WKHVDPHEDFNLQJ&RQVHTXHQWO\WKLVPHDQVWKH(8KDVVWDUWHGWDNLQJVLGHVLQWKH
7XUNLVK*UHHN FRQIOLFW 7KLV DWWLWXGH OHDGV XV WR WKLQN WKDW *UHHFH SUHVHUYHV LW
ZHLJKW RQ WKH (8 DQG UDLVHV WKH VXVSLFLRQ WKDW WKH (8 ZLOO FRQWLQXH ZLWK D VLPLODU
DSSURDFK
'XULQJ WKH +HOVLQNL 6XPPLW -XUJHQ 5HXWHU UHODWHV *UHHFH¶V REMHFWLRQ WR 7XUNH\¶V FDQGLGDF\ WR
VXFKDFDXVHWKDW*UHHFHPLJKWSUHIHU7XUNH\WRMRLQWKH8QLRQDIWHUFRPSO\LQJZLWKWKH&RSHQKDJHQ
&ULWHULDVRWKDW7XUNH\ZRXOGSURILWPRUHRILW+HDOVRLQGLFDWHVWKDWWKHFRQIOLFWLVVXHVEHWZHHQWKHP
VKRXOG EH FRQVLGHUHG DV (87XUNH\ LVVXHV UDWKHU WKDQ PDWWHUV WR EH VROYHG E\ 7XUNLVK*UHHN
GLDORJXH6HH-UJHQ5HXWHU³5HVKDUSLQJ*UHHN7XUNLVK5HODWLRQV'HYHORSPHQWV%HIRUHDQG$IWHU
WKH (8±6XPPLW LQ +HOVLQNL´ KWWSZZZHOLDPHSJU3XEOLFDWLRQV2FFDVLRQDOB3DSHUV23SGI
0D\
7KLV VLWXDWLRQ LV KHDGLQJ WR FRQFOXGH WKDW WKH LQWHUHVWV RI *UHHFH DQG WKH (8 PDWFK WRWDOO\
3DUWLFXODUO\WKHRXWHUERUGHUVRIWKH(8VKRXOGUHDFKWR(DVWHUQ0HGLWHUUDQHDQE\*UHHFHXSRQWKH
MRLQLQJ RI *UHHN &\SULRWV WR WKH 8QLRQ IDFLOLWDWLQJ WR D JUHDW H[WHQW WKH (8¶V EXUGHQ IRU VXFK
HQODUJHPHQW 2Q WKH VDPH WRSLF VHH 6H\IL 7DúKDQ ³$ 7XUNLVK 3HUVSHFWLYH RQ (XURSH7XUNH\
5HODWLRQVRQWKH(YHRIWKH,*&´ 9RO;;1SS
)RUHLJQ3ROLF\
&21),'(1&( %8,/',1* 0($685(6 $1' 785.,6+*5((.
5(/$7,216
7KH HIIRUWV IRU FRQIOLFW VROXWLRQ EHWZHHQ 7XUNH\ DQG *UHHFH VKRXOGEHWDNHQ
XS LQ WZR VHSDUDWHSUHVWXGLHV )LUVW LV WR WDNH PHDVXUHV WR DYRLG HVFDODWLRQ RI WKH
SUREOHPV VR WKDW PXWXDO FRQILGHQFH FDQ LQFUHDVH 7KH RWKHU LV DFWLYLW\ ZKHUH
FRPPRQLQWHUHVWVHPHUJHEHIRUHIRFXVLQJRQPDMRUFRQIOLFWLVVXHV:LWKLQDSURFHVV
ZHUH GLVSXWHV WXUQ LQWR KRWFRQIURQWDWLRQ DQG GLSORPDWLF DWWHPSWV IDLO WKH VLGHV
LQFOLQHWRZDUGV³GHIDFWR´VROXWLRQVZKLFKLQFUHDVHWKHULVNRIFODVKHV7RDYRLGVXFK
DQ XQGHVLUHG VLWXDWLRQ SULRULW\ LV QRZ JLYHQ WR EXLOGLQJ XS WKH UHODWLRQV RQ PXWXDO
FRQILGHQFHEDVLVUDWKHUWKDQEHJLQQLQJZLWKWKHSHUPDQHQWDQGVDWLVIDFWRU\VROXWLRQ
RI WKH PDMRU SUREOHPV 7KLV RUGHU RI GHDOLQJ ZLWK WKH LVVXHV FUHDWHV WKH QHFHVVDU\
FRQILGHQFHEXLOGLQJDWPRVSKHUH
7KH OHJDO DQGRU WKH SROLWLFDO QDWXUH RI WKH FRQIOLFW LVVXHV DV ZHOO DV WKHLU
PLOLWDU\VHFXULW\ GLPHQVLRQ LQGLFDWHV WR WKH VLGHV ZKLFK VWUDWHJ\ DQG WDFWLFV WR EH
FKRVHQ SOXV WKH VWDQFH WR EH WDNHQ 3DUWLFXODUO\ LI WKH VLGHV IDLO WR ILQG GLSORPDWLF
VROXWLRQVDQGUHYHUWWRGHIDFWRVROXWLRQVFDXVLQJWKHWHQVLRQWRFOLPEWKHUHZLOOEH
DQ LQFUHDVHG WKH ULVN RI ZDU DQG WKH VLGHV FRXOG JHW XVHG WR FRQIOLFW VLWXDWLRQV
)URPWKLVDQJOHWKH$WKHQVDQG,VWDQEXO$JUHHPHQWVVHUYHGDV³FRQILGHQFHEXLOGLQJ
PHDVXUHV´ DUUDQJLQJ WKH FRPPRQ HIIRUWV WR DYRLG FRQIOLFWV EHFRPLQJ FODVKHV 7KH
0DGULG 'HFODUDWLRQ DOVR FRQVWLWXWHV D YLWDO SKDVH RI WKLV SURFHVV DQG VHWV XS
³&%0V>ID@ ´
7KH'HFDGHRI
)RUDQDQDO\VLVXQGHUWKHVDPHWLWOHVHH)XDW$NVX³7UN<XQDQøOLúNLOHULQGH*YHQOLNYH*YHQ
$UWWÕUPDdDEDODUÕ´ (G&HP.DUDGHOL$QNDUD$\UDo
6R÷XN6DYDú6RQUDVÕQGD$YUXSDYH7UNL\H
<D\ÕQODUÕSS
7KHVLGHZKLFKJLYHVULVHWRWKHFOLPELQJRIFRQIOLFWWRZDUGVKRWFODVKHVIRUFHVWKHRWKHUVLGHWR
PDNH D FKRLFH EHWZHHQ GUDZEDFNRUFRPSURPLVH7KHFOLPELQJRIFRQIOLFWFDQEHVDWLVIDFWRU\RQO\
ZKHQWKHKDUPHGVLGHDJUHHVWRFRPSURPLVH,QFDVHWKHWKUHDWHQLQJVLGHRXWIDFHVHYHU\UHVXOWOLNH
ZDUDQGLVUHOXFWDQWIRUFRQFHVVLRQXQGHUWKRVHFLUFXPVWDQFHVSHUVXDVLYHDFWLRQVKRXOGEHWULHG2Q
WKH VDPH WRSLF VHH .DDUO : 'HXWVFK QG HG 1-
7KH $QDO\VLV RI ,QWHUQDWLRQDO 5HODWLRQV
(QJOHZRRG&OLIIVSS-DPHV'DXJKHUW\DQG5REHUW/3IDOW]JUDII-U &RQWHQGLQJ
7KHRULHVRI,QWHUQDWLRQDO5HODWLRQV 1HZ<RUN+DUSHU&ROOLQVSS
7KH HIIRUWV WR UHVROYH 7XUNLVK*UHHN FRQIOLFW LVVXHV WKURXJK QHJRWLDWLRQV DQG
HIIRUWV WR DYRLG LQWHUYHQWLRQV ZKLFK FDQ FDXVH WHQVLRQV WR FOLPE GXULQJ GH IDFWR
VLWXDWLRQVKDYHDOZD\VEHHQRQWKHDJHQGD(IIRUWVWRDYRLGWHQVLRQVWXUQLQJWRKRW
FRQIURQWDWLRQKDYHEHHQVXSSRUWHGE\WKHDOOLHVRIERWK7XUNH\DQG*UHHFHDVZHOO
DVLQWHUQDWLRQDORUJDQL]DWLRQV+RZHYHUWKHGHFDGHEHWZHHQDQGZDVD
WLPH ZKHQ WKH QHJRWLDWLRQ SURFHVV ZDV LQWHUUXSWHG WHQVLRQ LQFUHDVHG DQG KRW
FRQIURQWDWLRQSUHYDLOHG,QWKLVGHFDGHWKH3$62.JRYHUQPHQWXQGHUWKHOHDGHUVKLS
RI$3DSDQGUHRXZDVUDWKHUUHOXFWDQWRQGLDORJXHDQGLWHUDWHGIUHTXHQWO\WKDWWKUHDW
DJDLQVW WKH WHUULWRULDO LQWHJULW\ RI *UHHFH FDPH IURP 7XUNH\ 1R GRXEW VXFK D
GLVFRXUVH FORJJHGWKHURDGVWRGLDORJXH,QZKHQWHQVLRQVZHUHIDFHGRQWKH
FRQWLQHQWDOVKHOILVVXH&%0VFDPHWRIRUHDJDLQ$IWHU3ULPH0LQLVWHU7XUJXW
g]DO LQVLVWHG RQ EXLOGLQJ XS WKH UHODWLRQV RQ HFRQRPLF FRRSHUDWLRQ VR WKDW PXWXDO
FRQILGHQFH FRXOG EH PDLQWDLQHG ,Q KLV RSLQLRQ SROLWLFDO SUREOHPV ZHUH LPSHGLQJ
WKH FKDQFHV RI FRRSHUDWLRQ EHWZHHQ WKH WZR ,I HFRQRPLF FRRSHUDWLRQ FRXOG EH
LPSURYHGWKDWZRXOGLPSUHVVWKHSXEOLFRSLQLRQRIWKHWZRQDWLRQVDQGFRQVHTXHQWO\
ZRXOG PRGHUDWH WKH DSSURDFK RI SROLWLFLDQV WRR +H VWURQJO\ EHOLHYHG WKDW WKLV
DOWHUQDWLYHKDGWREHWULHG
+RZHYHUWKHGLDORJXHSURFHVVFRXOGEHVWDUWHGRQO\DIWHUWKHFRQWLQHQWDOVKHOI
FRQIOLFWLQ2Q-DQXDU\WKH3ULPH0LQLVWHUVRI7XUNH\DQG*UHHFH
FDPHWRJHWKHULQ'DYRV6XPPLWZKHUHWKH\ERWKWULHGWRVHHPZLOOLQJIRUVWDUWLQJWKH
+RWFRQIURQWDWLRQULVNVEURNHXSIURPWLPHWRWLPHRQWKH$HJHDQ6HDFRQWLQHQWDOVKHOIGLVSXWHDQG
WKH DWWHPSWV RI KRWFODVKHV ZHUH SUHYHQWHG E\ WKH %HUQ 'HFODUDWLRQ RI 1RYHPEHU 7KH
'HFODUDWLRQVHUYHGDVDNLQGRIPRUDWRULXPSUHVHUYLQJWKHOHJDOSROLWLFDODQGVRYHUHLJQW\ULJKWVDQG
LQWHUHVWVRIWKHVLGHVEULQJLQJPXWXDOFRPPLWPHQWVWRDYRLGFRQIOLFW)URPWKLVHQGLWFDQEHLQFOXGHG
LQFRQILGHQFHEXLOGLQJPHDVXUHV)RUWKHWH[WRIWKH%HUQ'HFODUDWLRQZZZWXUNLVKJUHHNRUJEHUQKWP
)RUDFULWLFDODSSURDFKWRWKHg]DO(UD7XUNH\¶V)RUHLJQ3ROLF\VHHøOKDQ8]JHO 8OXVDO dÕNDU YH
'Õú3ROLWLND$QNDUDøPJH<D\ÕQODUÕ
)RUKLVYLHZVRQWKHWRSLFVHH(UFPHQW<DYX]DOS $QNDUD%LOJL
/LGHUOHULPL] YH 'Õú 3ROLWLND
<D\ÕQODUÕS
,QKLVPHPRULHV<DYX]DOSUHPDUNV ´)RUg]DOSULRULW\KDGWREHJLYHQWRHFRQRPLFFRRSHUDWLRQIRUWKH
VDNHRIEHWWHUUHODWLRQV,IWKDWFRXOGEHUHDOL]HGILQDQFLDOLQWHUHVWVZRXOGH[HUWSUHVVXUHRQWKHSROLWLFDO
UHODWLRQVWRZDUGVQHJRWLDWLRQDQGZKHQWKHQDWLRQVZLWQHVVWKHJDLQVRIHFRQRPLFFRRSHUDWLRQDPRUH
FRQYHQLHQWJURXQGFRXOGEHPDLQWDLQHGIRUWKHVROXWLRQRISROLWLFDOGLVSXWHV´
GLDORJXH SURFHVV WKRXJK WKH PHHWLQJ WRRN SODFH VRRQ DIWHU WKH WHQVLRQ ,W ZDV
REVHUYHGWKDWWKH7XUNLVKVLGHZDVPRUHZLOOLQJWRVWDUWWKHGLDORJXHSURFHVV,QWKLV
FRQWH[WWKH'HFUHHRIZDVDQQXOOHGRQ)HEUXDU\DQGRQ)HEUXDU\
D *UHHN UHSUHVHQWDWLYH DUULYHG LQ 7XUNH\ WR SDUWLFLSDWH WKH ³/DQG 7UDQVSRUW
&RPPLVVLRQ0HHWLQJ´DIWHUILYH\HDUVIURPWKHODVWYLVLWRI*UHHFHWR7XUNH\%HIRUH
3ULPH0LQLVWHUg]DO¶VYLVLWWR$WKHQVRQ0D\LWZDVGHFLGHGWKDWZLWKLQ-XQH
WKH ³3ROLWLFDO &RPPLVVLRQ´ IRUPHG WR GLVFXVV WKH SUREOHPV EHWZHHQ 7XUNH\ DQG
*UHHFHZRXOGKROGLWVILUVWPHHWLQJLQ$WKHQVDQGWKHRWKHU&RPPLVVLRQDVVLJQHGWR
SURPRWH WUDGH HFRQRP\ DQG WRXULVP ZDV JRLQJ WR FRQYHQH LQ $QNDUD $OWKRXJK
WKH 'DYRV 6XPPLW UHVWDUWHG WKH GLDORJXH SURFHVV LW WRRN WLPH IRU WKH UHODWLRQV WR
LPSURYH7KHIUXLWVRIWKHSURFHVVVWDUWHGWRULSHQRQO\LQDQG'XULQJWKH
(FRQRPLF &RPPLVVLRQ PHHWLQJ KHOG RQ 0D\ WKH VLGHV FRQFOXGHG RQ
WKH LQLWLDWLRQ RI QHJRWLDWLRQ WRSLFV OLNH HFRQRPLF LQGXVWULDO WHFKQLFDO DQG VFLHQWLILF
FRRSHUDWLRQ DYRLGLQJ GRXEOH WD[DWLRQ PXWXDO SURPRWLRQ DQG SUHVHUYDWLRQ RI
LQYHVWPHQWV 7KH &RPPLVVLRQ DOVR FRQVLGHUHG LPSURYLQJ ODQG DLU DQG UDLOZD\
WUDQVSRUWDVZHOODVWKHLPSOHPHQWDWLRQRIFRPPXQLFDWLRQV\VWHPVEHWZHHQWKHP,Q
DGGLWLRQ WR WKHVH LVVXHV WKH &RPPLVVLRQ DOVR DJUHHG RQ IRVWHULQJ DQG LPSURYLQJ
FRRSHUDWLRQRQDJULFXOWXUHWUDGHDQGLQGXVWU\SOXVKHDOWKWRXULVPDQGHQYLURQPHQW
LVVXHV$VIRUWKHZRUNDELOLW\RIGHFLVLRQVWDNHQE\WKH(FRQRPLF&RPPLWWHHWKLV
ZDV JUHDWO\ WLHG WR WKH VXFFHVV RI WKH 3ROLWLFDO &RPPLWWHH PHHWLQJWR EH KHOG LQ
$WKHQVZLWKWKHSUHVHQFHRI7g]DOGXULQJKLVYLVLWWR$WKHQVRQ-XQH
7KH'HFUHHZLOOEHWDNHQXSLQGHWDLOODWHULQWKH³5HDO(VWDWH$FTXLVLWLRQRI*UHHN&LWL]HQVLQ
7XUNH\´VHFWLRQ
)RUDQDQDO\VLVIURPWKHIRUHLJQSUHVVIRUWKHVDPHSHULRGVHH 'Õú%DVÕQGD7UN<XQDQ=LUYHVL
$QNDUD7&%DúEDNDQOÕN%DVÕQ<D\ÕQYH(QIRUPDV\RQ*HQHO0GUO÷<D\ÕQÕ
)RU QHZV DSSHDUHG LQ IRUHLJQ SUHVV VHH 'Õú %DVÕQGD 7UN<XQDQ (NRQRPLN .RPLWH
7RSODQWÕODUÕ 0D\ $QNDUD 7& %DúEDNDQOÕN %DVÕQ <D\ÕQ YH (QIRUPDV\RQ *HQHO
0GUO÷<D\ÕQÕ
,WZDVREVHUYHGWKDWWKHVLGHVZHUHKHVLWDQWRQZKHWKHUWKH'DYRV3URFHVVZRXOG\LHOGVROLGSRVLWLYH
UHVXOWVLQWKHVKRUWUXQ)RULQVWDQFH)RUHLJQ0LQLVWHU0HVXW<ÕOPD]ZKLOHFRPPHQWLQJRQWKHVXEMHFW
UHPDUNHG ³7KH 3DUWLHV DFFHSWHG EHIRUH KDQG WKDW WKH SURFHVV ZRXOG QRW FUHDWH VROLG UHVXOW DW RQFH
%RWK JRYHUQPHQWV FRPSUHKHQG WKDW WKLV SURFHVV ZLOO UHTXLUH ORQJ WLPH JUHDW HIIRUW DQG SDWLHQFH´
NQRZLQJWKDWWDNLQJGLVWDQFHZRXOGEHWLPHWDNLQJ
7KH3ROLWLFDO&RPPLWWHH¶VGHFLVLRQVKDYHEHHQDYLWDOVWHSWROHVVHQWKHULVNVRIKRW
FRQIURQWDWLRQDIWHUDQGFRQWLQHQWDOVKHOIFULVHV
$WKHQVDQG,VWDQEXO$JUHHPHQWV
,WLVUHPDUNDEOHWKDWSULRULW\LVJLYHQWR&%0VWRDEROLVKWKHWKUHDWSHUFHSWLRQV
WKDW GDPDJH WKH UHODWLRQV HYHU\ QRZ DQG WKHQ )RU WKH GLDORJXH SURFHVV WR EH
UHVWDUWHG WKH VLGHV RQ 0D\ XQGHU WKH VLJQDWXUHV RI 0HVXW <ÕOPD] DQG
3DSXOLDVKDYHFRQFOXGHGRQWKHIROORZLQJLWHPV
³7KHWZRSDUWLHVKDYHDJUHHGRQWKHIROORZLQJFRQILGHQFHEXLOGLQJPHDVXUHV
x %RWK SDUWLHV UHFRJQLVH WKH REOLJDWLRQ WR UHVSHFW WKH VRYHUHLJQW\ DQG WKH
WHUULWRULDO LQWHJULW\ RI HDFK RWKHU DQG WKHLU ULJKWV WR XVH WKH KLJK VHDV DQG
LQWHUQDWLRQDODLUVSDFHRIWKH$HJHDQ
x ,QFRQGXFWLQJQDWLRQDOPLOLWDU\DFWLYLWLHVLQWKHKLJKVHDVDQGWKHLQWHUQDWLRQDO
DLUVSDFH WKH WZR SDUWLHV VKDOO HQGHDYRXU WR DYRLG LQWHUIHULQJ ZLWK VPRRWK
VKLSSLQJ DQG DLUWUDIILF DV HQVXUHG LQ DFFRUGDQFH ZLWK LQWHUQDWLRQDO LQVWUXPHQWV
UXOHV DQG UHJXODWLRQV 7KLV ZRXOG FRQWULEXWH WR WKH HOLPLQDWLRQ RI XQZDUUDQWHG
VRXUFHVRIWHQVLRQDQGUHGXFHWKHULVNVRIFROOLVLRQ
x 7KH WZR SDUWLHV KDYH DJUHHG WKDW WKH SODQQLQJ DQG WKH FRQGXFW RI QDWLRQDO
PLOLWDU\H[HUFLVHVLQWKHKLJKVHDVDQGWKHLQWHUQDWLRQDODLUVSDFHZKLFKUHTXLUHWKH
SURPXOJDWLRQRID127$0RUDQ\RWKHUQRWLILFDWLRQRUZDUQLQJVKRXOGEHFDUULHG
RXWLQVXFKDZD\DVWRDYRLGDOVRWRWKHPD[LPXPH[WHQWSRVVLEOHWKHIROORZLQJ
7KHLVRODWLRQRIFHUWDLQDUHDV
7KHEORFNLQJRIH[HUFLVHDUHDVIRUORQJSHULRGVRIWLPH
7KHLU FRQGXFW GXULQJ WKH WRXULVW SHDN SHULRG -XO\ 6HSWHPEHU DQG PDLQ
QDWLRQDODQGUHOLJLRXVKROLGD\V
,WLVXQGHUVWRRGWKDWWKHSODQQLQJDQGH[HFXWLRQRIDOOQDWLRQDOPLOLWDU\DFWLYLWLHV
ZLOOEHFDUULHGRXWLQDFFRUGDQFHZLWKWKHH[LVWLQJLQWHUQDWLRQDOUXOHVUHJXODWLRQVDQG
SURFHGXUHV
:LWK D YLHZ RI DFKLHYLQJ WKH DERYH DQG ZLWKRXW SUHMXGLFH WR WKH H[LVWLQJ
LQWHUQDWLRQDOUHJXODWLRQVDQGSURFHGXUHVWKHWZRVLGHVZLOOSURFHHGZKHQUHTXLUHG
WRGXHFRPPXQLFDWLRQWKURXJKGLSORPDWLFFKDQQHOV
7KHSURYLVLRQVRIWKHPHPRUDQGXPRIXQGHUVWDQGLQJVKDOOKDYHHIIHFWDQGEH
LPSOHPHQWHG LQ IXOO FRQIRUPLW\ ZLWK WKH SURYLVLRQV RI WKH 'DYRV MRLQW SUHVV
FRPPXQLTXp´
)ROORZLQJ3ULPH0LQLVWHU7g]DO¶VYLVLWWR$WKHQVWKH,VWDQEXO$JUHHPHQWZDV
VLJQHGRQ6HSWHPEHU$FFRUGLQJWRWKLVDJUHHPHQW
,QDFFRUGDQFHZLWKWKHDERYH
$ $ 7KH QDYDO XQLWV RI WKH SDUWLHV ZLOO DELGH E\ WKH IROORZLQJ
JXLGHOLQHV
x 7KH\ ZLOO UHIUDLQ IURP DFWV RI KDUDVVPHQW RI HDFK RWKHU ZKLOH
RSHUDWLQJLQWKHKLJKVHDVLQDFFRUGDQFHZLWKLQWHUQDWLRQDOODZDQG
FXVWRP
x 7KH\ ZLOO DFW LQ IXOO FRQIRUPLW\ ZLWK LQWHUQDWLRQDO ODZ UXOHV
UHJXODWLRQVDQGSURFHGXUHVDVZHOODVPLOLWDU\FXVWRPDQGFRXUWHV\
x 1DYDO XQLWV HQJDJHG LQ WKH VXUYHLOODQFH RI VKLSV RI WKH RWKHU
SDUW\ GXULQJ ILULQJ RSHUDWLRQV DQG RWKHU PLOLWDU\ DFWLYLWLHV LQ
DFFRUGDQFH ZLWK LQWHUQDWLRQDO ODZ LQVWUXPHQWV UXOHV UHJXODWLRQV
DQGSURFHGXUHVVKDOOPDLQWDLQDSRVLWLRQZKLFKZLOOQRWKDPSHUWKHLU
VPRRWKFRQGXFW
% % 7KH DLU IRUFH XQLWV LQ FRQGXFWLQJ PLOLWDU\ DFWLYLWLHV LQ WKH
LQWHUQDWLRQDODLUVSDFHZLOODELGHE\WKHIROORZLQJJXLGHOLQHV
)RUWKHIXOOWH[WRI$WKHQV$JUHHPHQWGDWHG0D\FRQFOXGHGEHWZHHQ)RUHLJQ0LQLVWHUV
<ÕOPD] DQG 3DSXOLDV VHH KWWSZZZWXUNLVKJUHHNRUJ\SDSXOLDVKWP 'Õú %DVÕQGD 'ÕúLúOHUL
<D\ÕQYH(QIRUPDV\RQ*HQHO0GUO÷<D\ÕQÕSS
x 7KH\ ZLOO DFW LQ IXOO FRQIRUPLW\ ZLWK LQWHUQDWLRQDO ODZ DQG LQ
SDUWLFXODU LQWHUQDWLRQDO FXVWRP LQVWUXPHQWV UXOHV UHJXODWLRQV DQG
SURFHGXUHV
x 3LORWVRIDLUFUDIWRIWKHSDUWLHVVKDOOGLVSOD\XWPRVWFDXWLRQZKHQ
LQSUR[LPLW\RIDLUFUDIWRIWKHRWKHUSDUW\DQGVKDOOQRWPDQRHXYUHRU
UHDFWLQDPDQQHUWKDWZRXOGEHKD]DUGRXVWRWKHVDIHW\RIWKHIOLJKW
DQGRUDIIHFWWKHFRQGXFWRIWKHPLVVLRQRIWKHDLUFUDIW
7R SURPRWH WKH FOLPDWH RI FRQILGHQFH ZKHQHYHU WKHUH DUH FODLPV RI DFWV
FRQWUDU\ WR WKH DERYH WKH VLGHV ZLOO LQ WKH ILUVW SODFH LQIRUP HDFK RWKHU WKURXJK
GLSORPDWLFFKDQQHOVSULRUWRUHOHDVLQJRIILFLDOVWDWHPHQWV´
'HVSLWH DOO WKHVH PHDVXUHV FODLPV RI DLU VSDFH YLRODWLRQV SHUVLVWHG RQ ERWK
VLGHV&RQVHTXHQWO\WKHEUHDNRXWRIIXUWKHUWHQVLRQVLQDQGSURYHGWKDW
WKHFRQILGHQWLDOJURXQGWKHSDUWLHVKDGWULHGWREXLOGXSZDVVWLOOXQVHWWOHGDQGVKDN\
0DGULG'HFODUDWLRQ
7KH0DGULG'HFODUDWLRQDQQRXQFHGDIWHUWKH.DUGDN5RFNVFULVLVLQKDG
EHHQ HIILFLHQW WR EROVWHU WKH ³VWDWXV TXR´ QHHGHG IRU D UHODWLRQVKLS WR EH EXLOW RQ
FRQILGHQFHEDVLV:LWKWKH0DGULG'HFODUDWLRQRI-XO\WKH3DUWLHVDJUHHGWR
SXUVXHHIIRUWVWRSURPRWHELODWHUDOUHODWLRQVEDVHGXSRQ
³0XWXDO FRPPLWPHQW WR SHDFH VHFXULW\ DQG WKH FRQWLQXLQJ GHYHORSPHQW RI
JRRGQHLJKERXUO\UHODWLRQV
5HVSHFWIRUHDFKRWKHU¶VVRYHUHLJQW\
5HVSHFWIRUWKHSULQFLSOHVRILQWHUQDWLRQDOODZDQGLQWHUQDWLRQDODJUHHPHQWV
5HVSHFW IRU HDFK RWKHU¶V OHJLWLPDWH YLWDO LQWHUHVWV DQG FRQFHUQV LQ WKH
$HJHDQZKLFKDUHRIJUHDWLPSRUWDQFHIRUHDFKFRXQWU\¶VVHFXULW\DQGVRYHUHLJQW\
ULJKWV
)RUWKHIXOOWH[WRI³*XLGHOLQHVIRUWKH3UHYHQWLRQRI$FFLGHQWVDQG,QFLGHQWVRQWKH+LJK6HDVDQG
,QWHUQDWLRQDO $LUVSDFH´ VHH +XOXVL .ÕOÕo (G &XPKXUL\HW '|QHPLQGH 7UNL\H LOH <XQDQLVWDQ
$UDVÕQGD øP]DODQDQ øNLOL $QODúPDODU gQHPOL %HOJHOHU YH %LOGLULOHU $QNDUD 'ÕúLúOHUL %DNDQOÕ÷Õ
<D\ÕQODUÕS
&RPPLWPHQWWRUHIUDLQIURPXQLODWHUDODFWVRQWKHEDVLVRIPXWXDOUHVSHFWDQG
ZLOOLJQHVVWRDYRLGFRQIOLFWVDULVLQJIURPPLVXQGHUVWDQGLQJDQG
&RPPLWPHQWWRVHWWOHGLVSXWHVE\SHDFHIXOPHDQVEDVHGRQPXWXDOFRQVHQW
DQGZLWKRXWXVHRIIRUFHRUWKUHDWRIIRUFH´
7KH PRVW VLJQLILFDQW DVSHFW RI WKH 'HFODUDWLRQ ZDV WKDW LW EDQQHG *UHHFH
IURPWDNLQJXQLODWHUDODFWLRQDQG7XUNH\IURPH[HUWLQJPLOLWDU\IRUFHDVDWKUHDWHQLQJ
HOHPHQW
7KLVFRPPLWPHQWEURXJKWXSDUJXPHQWVLQ7XUNH\DVWRZKHWKHUWKHUHZDVD
GHOLEHUDWH FKDQJH LQ WKH EDVLF XQGHUVWDQGLQJ RI WKH VLGHV SDUWLFXODUO\ RQ WKH SRLQW
WKDWLI*UHHFHH[WHQGHGLWVWHUULWRULDOOLPLWVWRPLOHVLQWKH$HJHDQWKLVZRXOGEH
FRQVLGHUHG DV ³FDVXV EHOOL´ $QRWKHU DSSURDFK WRZDUGV ³FRQILGHQFH EXLOGLQJ
2QWKLVWRSLFVHH³*UHHN7XUNLVK5HODWLRQV7KH0DGULG-RLQW'HFODUDWLRQ´ 6XPPHU
7KHVLV
SS
)RUWKHSUHSDUDWLRQVWDJHRIWKH0DGULG'HFODUDWLRQVHHøVPDLO&HP 7UNL\H $YUXSD $YUDV\D
9ROXPH,VWDQEXO%LOJLhQLYHUVLWHVL<D\ÕQODUÕSS
øVPDLO&HPH[SODLQVWKHFRQGLWLRQDOUHFLSURFLW\SULQFLSOHLQWKH0DGULG'HFODUDWLRQDVIROORZV³ 7KH
LQWHUSUHWDWLRQ RI WKH 'HFODUDWLRQ IURP GLSORPDWLF ODQJXDJH WR SROLWLFDO ZDV WKDW WKH *UHHN VLGH ZDV QRW
JRLQJ WR WDNH GHFLVLRQV DORQH DQG ZRXOG QRW EH DEOH WR PDNH XQLODWHUDO DWWHPSWV 1DPHO\ WKH\ ZRXOG
QRWEHDEOHWRHQODUJHWKHLUWHUULWRULDOZDWHUOLPLWLQGLYLGXDOO\DQGSXWLWLQWRIRUFH«$VIRU7XUNH\«VKH
ZDV QRW JRLQJ WKUHDWHQ WKHP +HUH RXU ³FDVXV EHOOL´ DSSURDFK WR WKH DWWHPSW LV PHDQW 7XUNH\ KDG
GHFODUHG EHIRUH WKDW DQ DWWHPSW WR HQODUJH WKH WHUULWRULDO OLPLWV LQ WKH $HJHDQ ZRXOG EH FRQVLGHUHG DV
³FDVXV EHOOL´ )RU ZKLFK FODXVH SULRULW\ ZDV WR EH JLYHQ LQ WKH WH[W JDYH ULVH WR VHULRXV DUJXPHQWV
1DWXUDOO\ ZH LQVLVWHG RQ WKH FODXVH ³UHIUDLQLQJ IURP XQLODWHUDO DWWHPSWV´ WR EH LQFOXGHG EHIRUH
+RZHYHU LQ WKDW FDVH WKH FODXVH ³UHIUDLQLQJ IURP WKUHDW´ FDPH WR EH EDVHOHVV DQG DFWXDOO\ LW JDLQHG
PHDQLQJ LQ RXU IDYRU EHFDXVH ³WKUHDW´ ZDV JRLQJ WR EH LQ TXHVWLRQ RQO\ LI *UHHFH PDGH D XQLODWHUDO
DWWHPSW,IWKH\GLGQRWPDNHDXQLODWHUDODWWHPSWWKHUHZRXOGEHQRUHDVRQIRUWKUHDWRUPHQWLRQLQJRI
³FDVXV EHOOL´ 7KH PDLQ SRLQW ZDV WR UHIUDLQ *UHHFH IURP WDNLQJ XQLODWHUDO DFWLRQ´ &HP 7UNL\H
$YUXSD$YUDV\D« SS
0DGULG 'HFODUDWLRQ ZDV LQ IDFW FULWLFL]HG LQ WKH SDUOLDPHQW E\ WKH RSSRVLWLRQ GHSXWLHV DQG E\ VRPH
GHSXWLHVRIWKHUXOLQJ3$62.JRYHUQPHQW7KH'HFODUDWLRQZDVLQWHUSUHWHGDV*UHHFH¶VGUDZLQJEDFN
LWV PLOHV FODLP LQ WKH $HJHDQ ³gQ\DUJÕODUD .DSÕOPDGDQ $SDoÕN´ -XO\
(OHIWHURWLSLD
PHDVXUHV´ ZDV WKH )RUHLJQ 0LQLVWHU 0 <ÕOPD]¶V SDFNDJH RI VXJJHVWLRQV RQ
)HEUXDU\+HVXJJHVWHGWKDW3DUWLHVGHILQHGWKHLUSUREOHPVWRJHWKHUWKDWWKH
0DGULG 'HFODUDWLRQ HYROYH LQWR D IRUPDO DJUHHPHQW &%0V WR EH LPSURYHG DQG
DFWLYDWHG LQ WKH $HJHDQ DQG WKH :LVH 0HQ *URXS IURP 7XUNH\ DQG *UHHFH WR EH
DVVLJQHGIRUGLVFXVVLQJDQGGHILQLQJLVVXHVRIFRQIOLFW
,Q FDVH WKHVH VXJJHVWLRQV ZHUH DSSURYHG E\ *UHHFH UHSUHVHQWDWLYHV IURP
7XUNLVK DQG *UHHN )RUHLJQ 0LQLVWULHVZHUHJRLQJWRFRQYHQHLQ$QNDUDDQG$WKHQV
E\ 0DUFK +RZHYHU RQ )HEUXDU\ *UHHFH VHQW D UHVSRQGLQJ
PHPRUDQGXPDQGUHIXVHGWKHVXJJHVWLRQVLQTXHVWLRQ
,QWKLVFRQWH[WWKHSURSRVDORI³WKHGHYHORSPHQWDQGLPSOHPHQWDWLRQRI&%0V
LQWKH$HJHDQDVDQLQWHJUDWHGZKROHLQFROODERUDWLRQZLWKWKH6HFUHWDU\*HQHUDORI
1$72´VXJJHVWHGGXULQJWKH1$72)RUHLJQ0LQLVWHUVPHHWLQJLQ/X[HPEXUJRQ
0D\ZDVFRQVLGHUHGWKDQNVWRWKHFRQVWUXFWLYHDWWHPSWVRI1$726HFUHWDU\
*HQHUDO - 6RODQD )LQDOO\ RQ -XQH &%0V ZHUH SURFODLPHG 7KHVH
PHDVXUHV ZHUH PHDQW WR DYRLG ULVN RI FRQIURQWDWLRQ RI WKH PLOLWDU\ IRUFHV RI ERWK
FRXQWULHV GXULQJ URXWLQH PLOLWDU\ SUDFWLFHV LQ WKH RSHQVHDV UHJLRQ DQG LQWHUQDWLRQDO
DYLDWLRQ ]RQH LQ WKH $HJHDQ DQG WR VXVWDLQ PXWXDO UHVSHFW IRU VRYHUHLJQW\ DQG
WHUULWRULDO ULJKWV ,Q WKLV PDQQHU ZKHQ YLRODWLRQ RI ULJKWV DQG WKH RFFXUUHQFH RI
FDVXDOWLHV ZHUH DYRLGHG WKH ULVN RI PLOLWDU\ FRQIURQWDWLRQ LQ WKH $HJHDQ ZRXOG EH
³øNWLGDUD $oÕN 0HNWXS´ -XO\
(NVXVLD
KWWSZZZE\HJPJRYWU<$<,1/$5,0,=',6%$6,1[[7;7-XQH
6HH³,QIRUPDWLRQ1RWH&RQFHUQLQJWKH3URSRVDOV0DGH%\7XUNH\WR*UHHFH)HEUXDU\
$ERXW$3URFHVVRI3HDFHIXO6HWWOHPHQWRI3UREOHPV2YHU7KH$HJHDQ%HWZHHQ7KH7ZR&RXQWULHV´
3HUFHSWLRQV 0DUFK0D\9ROXPH,,,1XPEHU
)RUWKHSURSRVDODQG*UHHFH¶VUHSO\VHHKWWSZZZPIDJRYWUJUXSEEDEDDIHEUXDU\GHIDXOWKWP
)RUDQDVVHVVPHQWRQWKHSURSRVDOVVHH6*OGHQ$\PDQ SS
³7UN ± <XQDQ øOLúNLOHULQGH´
6RODQD 7UNL\H YH <XQDQLVWDQ¶ÕQ *YHQ $UWWÕUÕFÕ gQOHPOHU .RQXVXQGD $QODúWÕNODUÕQÕ %HOLUWWL´
<XQDQLVWDQ¶ÕQ 6HVL 5DG\RVX -XQH ³7UNL\H YH <XQDQLVWDQ (JH 'HQL]L
QGH $VNHUL %LU
dDWÕúPD dÕNPDVÕQÕ gQOH\HFHN 7HGELUOHU $OPD\Õ .DUDUODúWÕUGÕODU´
-XQH
$PHULND¶QÕQ 6HVL 5DG\RVX
KWWSZZZE\HJPJRYWU<$<,1/$5,0,=',6%$6,1[[+70
PLQLPL]HG+RZHYHULWLVTXHVWLRQDEOHWRZKDWH[WHQWWKH3DUWLHVKDYHEHHQOR\DOWR
&%0DQGFULWLFLVPVFDUULHGRQLQWKLVUHVSHFW
6RRQ DIWHU WKH gFDODQ FULVLV RQ 0D\ )RUHLJQ 0LQLVWHU øVPDLO &HP
ZURWHDOHWWHUWRKLV*UHHNFRXQWHUSDUW3DSDQGUHRX&HP¶VLQWHQWLRQZDVWRSUHSDUH
JURXQG IRU UHVWDUWLQJ WKH GLDORJXH SURFHVV ZKLFK KDG EHHQ LQWHUUXSWHG ZLWK WKH
HYHQWV RI FRQILGHQFHEUHDNLQJ gFDODQ FULVLV ,Q WKH OHWWHU &HP H[SUHVVHG KLV YLHZV
IRU WKH LPSURYHPHQW RI ELODWHUDO UHODWLRQV DQG PHQWLRQHG DERXW 7XUNH\¶V VHQVLWLYLW\
VD\LQJ ³2XU LQLWLDO VWHS VKRXOG EH WR DGGUHVV WKH SUREOHP RI ZKDW LV SHUFHLYHG LQ
7XUNH\DVOLQNVWKDWH[LVWLQ*UHHFHZLWKWHUURULVWRUJDQL]DWLRQVDQGWKHLUV\VWHPDWLF
HQFRXUDJHPHQW7KLVLVDPDWWHURIFUXFLDOLPSRUWDQFHIRUXVDQGUHFHQWHYHQWVKDYH
PDGHLWLPSHUDWLYHWKDWWKLVLVVXHEHKDQGOHGLQDQH[SOLFLWPDQQHUDQGDWWKHELODWHUDO
OHYHOEHWZHHQRXUWZRFRXQWULHV
, WKHUHIRUH VXJJHVW WKDW 7XUNH\ DQG *UHHFH FRQFOXGH DQ DJUHHPHQW WR
FRPEDW WHUURULVP 5HVROXWLRQ RI WKLV LVVXH ZRXOG SHUPLW XV WR DSSURDFK RXU NQRZQ
GLIIHUHQFHV ZLWK JUHDWHU FRQILGHQFH 7KH VXEVWDQFH RI WKLV DJUHHPHQW PD\ EH
LQVSLUHGE\DFFRUGVZHKDYHDOUHDG\VLJQHGZLWKVRPHRIRXURWKHUQHLJKERUVEXWLV
VKRXOG DOVR EH VSHFLILF WR WKH QDWXUH RI WKH SUREOHP DV LW DIIHFWV RXU UHODWLRQV :H
KDYHVRPHIXUWKHULGHDVLQWKLVUHVSHFWZKLFKZHDUHUHDG\WRVKDUHZLWK\RX´
7KLV DSSURDFK RI 7XUNH\ UHFHLYHG SRVLWLYH UHVSRQVH IURP *UHHFH DQG
3DSDQGUHRX,QKLVUHSO\GDWHG-XQHKHH[SUHVVHGKLVDSSUHFLDWLRQWKDWWKH
ZRUGLQJRIWKHDWWHPSWIRULPSURYLQJWKHUHODWLRQVFDPHIURP7XUNH\DQGDGGHGWKDW
*UHHFH¶V DQWLFLSDWLRQV ZHUH LQ WKH VDPH GLUHFWLRQ 3DSDQGUHRX DOVR VWUHVVHGLQKLV
UHSO\ WKDW *UHHFH ZDV ZLOOLQJ WR GHWHUPLQH WKH FRQIOLFW PDWWHUV ZLWKLQ WKH VFRSH RI
,QWHUQDWLRQDO/DZDQGDJUHHPHQWVDQGOLVWHGWKHWRSLFVUHOHYDQWWRWKHLQWHUHVWRIERWK
$YUDV\D« SS
*UHHFH DQG 7XUNH\ DV FXOWXUDO DIIDLUV WRXULVP HQYLURQPHQWDO LVVXHV RUJDQL]HG
FULPHHFRQRPLFFRRSHUDWLRQDQGHFRORJLFDOSUREOHPV
:LWKLQ WKH PRGHUDWH GLDORJXH SURFHVV WKH VLGHV KDYH FRQFHQWUDWHG RQ
PDWWHUV RWKHU WKDQ PDMRU FRQIOLFW LVVXHV EHWZHHQ WKHP DQG WULHG WR IRVWHU
FRRSHUDWLRQ7KLVPDGHDQLPSDFWWKDW&%0KDGWREHLPSOHPHQWHGLQGHWHUPLQDWLRQ
DQGFUHDWHGRSWLPLVPIRUWKHUHDOL]DWLRQRIWKHVHFRQGSKDVHRIUHODWLRQVWREHEDVHG
RQ WKDW FRRSHUDWLRQ ,Q IDFW WKH IRUPDO YLVLWV H[FKDQJHG EHWZHHQ WKH WZR DQG WKH
QRWHG ZLOOLQJQHVV GLVSOD\HG IRU WKH FRQFOXGHG DJUHHPHQWV WR FRPH LQWR IRUFH DUH
QRWDEOHHIIRUWVLQWKLVUHVSHFW
+RZ GLG WKH SROLWLFDO SUREOHPV HIIHFW HFRQRPLF UHODWLRQV" +DYH WKH FRQIOLFW
LVVXHV LQIOXHQFHG WKH IRUHLJQ WUDGH EHWZHHQ 7XUNH\ DQG *UHHFH QHJDWLYHO\" +RZ
ZDV WKH WUHQG LQ PXWXDO WUDGH SDUWLFXODUO\ GXULQJ UHFHVVLRQ \HDUV DQG LQ WKH \HDUV
IROORZLQJ WKRVH" 7KH DQVZHUV WR WKHVH TXHVWLRQV ZLOO DOVR FRQWULEXWH WR WKH
XQGHUVWDQGLQJRIWKHSRVLWLYHLPSDFWRIHFRQRPLFUHODWLRQVRYHUWKHZKROHEXQFKRI
UHODWLRQV
,WLVPHDQLQJIXOWKDW3DSDQGUHRXLQKLVUHSO\H[SUHVVHVWKDWDQDJUHHPHQWVKRXOGEHZRUNHGRXWIRU
WKHFRPEDWRIWHUURULVPEHWZHHQ7XUNH\DQG*UHHFHø&HPLQKLVPHPRULHVDOVRPHQWLRQVWKLVSRLQW
³3DSDQGUHRX GXH WRWKHGHPDQGRISXEOLFRSLQLRQDQGFRQFHUQVRIGRPHVWLFVWDELOLW\VXJJHVWVWKDWD
QXPEHU RI DJUHHPHQWV WR GLVVROYH PDWWHUV RI FRQIOLFW VKRXOG EH FRQVLGHUHG UDWKHU WKDQ RQO\ RQH DQG
PHQWLRQLQJ WKH FRPEDW RI WHUURULVP OLNH RQH RI WKH RUGLQDU\ 1R PDWWHU KRZKHKDGDFFHSWHGRXUSUH
WHUURULVPRUJDQL]HGFULPHGUXJWUDIILFNLQJDQGFRRSHUDWLRQRQWKHVWUXJJOHDJDLQVWLOOHJDOPLJUDWLRQ
FDPH LQWR IRUFH +RZHYHU *UHHFH GLG QRW LQFOXGH 3...21*5$*(/ LQ LWV OLVW RI WHUURULVW
RUJDQL]DWLRQVDQG3..FDUULHGRQLWVDFWLYLWLHVLQ*UHHFHIRUDORQJWLPHDIWHUWKDWZKLFKZDVDQRWKHU
SRLQW RI XQUHVW 3...$'(..21*5$*(/ ZDV LQFOXGHG LQ WKH OLVW RIWHUURULVWRUJDQL]DWLRQRIWKH
(XURSHDQ &RXQFLO RQ $SULO &RXQFLO &RPPRQ 3RVLWLRQ &)63 RI $SULO
8SGDWLQJ&RPPRQ3RVLWLRQ&)63RQWKH$SSOLFDWLRQRI6SHFLILF0HDVXUHVWR&RPEDW
OH[SULHQRMGDWOBOBHQSGI -XO\ )RU WKH IXOO WH[W RI WKH
OHWWHUKWWSZZZWXUNLVKJUHHNRUJPHNWXSODKWP-XQH
$OVR VHH ³$WLQD¶GDQ 2OXPOX <DQÕW´ &XPKXUL\HW -XQH S 6HUSLO dHYLNFDQ ³$WLQD¶GDQ
%DUÕú3DNHWL´ -XQHS
0LOOL\HW
)RU ORQJ \HDUV WKH GHYHORSPHQW RI HFRQRPLF UHODWLRQV EHWZHHQ 7XUNH\ DQG
*UHHFHKDVEHHQUDWKHUZHDNGXHWRWKHH[LVWHQFHRISROLWLFDOOHJDOFRQIOLFWVEHWZHHQ
WKHP 7KRXJK WKH WUDGH ILJXUHV NHSW RQ JURZLQJ JUDGXDOO\ LW ZDV SRVVLEOH WR FDWFK
WKH VDPH WUHQG LQ HFRQRPLF FRRSHUDWLRQ 7KH VWDELOLW\ ZDV QRW UHDFKHG GXH WR
SROLWLFDOFRQIOLFWVDQGWKLVSKHQRPHQRQPDGHQHJDWLYHLPSDFWRQMRLQWLQYHVWPHQWDQG
IORZ RI FXUUHQF\ 'XULQJ WKH V 7XUNLVK DQG *UHHN JRYHUQPHQWV WRRN
FRQWURYHUVLDO VWDQFH LQ YLHZLQJ FRQIOLFW LVVXHV EHWZHHQ WKHP 'XULQJ WKLV SHULRG
FRQWUDU\WRWKH7XUNLVKDSSURDFKE\7g]DOZKRGHHPHGHFRQRPLFFRRSHUDWLRQWR
EH D VWHSSLQJ VWRQH WR WKH LPSURYHPHQW RI WKH UHODWLRQV LQ JHQHUDO +RZHYHU WKH
3$62.JRYHUQPHQWXQGHUWKHOHDGHUVKLSRI$3DSDQGUHRXSXWIRUWKFRQGLWLRQVIRU
WKHLQLWLDWLRQRIWKHGLDORJXHSURFHVV*UHHFHEHLQJDPHPEHURIWKH(8DQG7XUNH\
EHLQJDFDQGLGDWHLQIOXHQFHGFRPSHWLWLRQEHWZHHQWKHWZR
7KHVROLGVWHSVWDNHQWRZDUGVWKHGHYHORSPHQWRIIRUHLJQWUDGHDQGHFRQRPLF
FRRSHUDWLRQZHUHDFKLHYHGWRDJUHDWH[WHQWLQWKHSHULRGDIWHUDIWHUWKH&%0V
FDPH WR OLIH 7KH GLDORJXH SURFHVV VWDUWHG IRU WKH VROXWLRQ RI FRQIOLFWV EHWZHHQ
7XUNH\ DQG *UHHFH DV ZHOO DV WKH SURFHVV OHDGLQJ WR WKH (8 PHPEHUVKLS ZHUH
VXSSRUWHG ZLWK WKH FRJHQW DWWHPSWV E\ ERWK SDUWLHV 7KLV FRXUVH ZDV WUDFHG LQ
HFRQRPLF FRRSHUDWLRQ HIIRUWV WRR :KHQ FRQVLGHUHG IURP D JHQHUDO SHUVSHFWLYH
WUDGHEHWZHHQ7XUNH\DQG*UHHFHZDVQRWPXFKDIIHFWHGE\WKHLQWHUUXSWLRQRIWKH
GLDORJXHSURFHVVDQGFRQWURYHUV\6KRUWO\VLQFHWKHDPRXQWRIWUDGHZDVUDWKHUORZ
LW ZDV QRW D GHWHUUHQW IDFWRU IRU UHVROYLQJ WKH PDMRU FRQIOLFW LVVXHV 7KHLU WUDGH
UHODWLRQV ZHUH QHLWKHU QHJDWLYHO\ QRU SRVLWLYHO\ LQIOXHQFHG E\ WKH GLDORJXH SURFHVV
+RZHYHU ZKHQ WKHLU IRUHLJQ WUDGH ILJXUHV LQFUHDVHG WKHLU PXWXDO WUDGH DPRXQWV
ZRXOGLQFUHDVHLQSDUDOOHO0RUHRYHUMRLQWLQYHVWPHQWVDQGHQGHDYRUVIRUHFRQRPLF
FRRSHUDWLRQUHPDLQHGUDWKHUVPDOO$FFRUGLQJO\LWLVUHPDUNDEOHWKDWDIWHUZLWK
WKHUHDOLQLWLDWLRQRIWKHGLDORJXHSURFHVVLQOLQHZLWKWKHSROLWLFDOLPSURYHPHQWVWKH
HIIRUWV RI WKH EXVLQHVVPHQ DQG LQGXVWULDOLVWV VWDUWHG WR ERRP IRU PDLQWDLQLQJ EHWWHU
FRRSHUDWLRQ
,Q IDFW RQH RI WKH VXJJHVWLRQV LQFOXGHG LQ WKH &%0V ZKLFK WXUQHG LQWR DQ
DJUHHPHQW LQ DLPHG WR IRVWHU FRPPRQ HIIRUWV RI FRRSHUDWLRQ EHWZHHQ 7XUNH\
DQG *UHHFH LQ WKH ILHOG RI HFRQRP\ 7KH (FRQRPLF &RRSHUDWLRQ $JUHHPHQW
FRQFOXGHG LQ $WKHQV RQ )HEUXDU\ HQYLVDJHG WKH 3DUWLHV IRU WKH VDNH RI
SURPRWLQJ HFRQRPLF FRRSHUDWLRQ DJUHH WR MRLQ HIIRUWV RQ WKH ILHOGV LQFOXGLQJ VKLS
EXLOGLQJ DQG UHSDLULQJ HQHUJ\ DJULFXOWXUH DQG DJURLQGXVWU\ FRQVWUXFWLRQ SOXV LWV
FRQVXOWDQF\ VHUYLFHV WUDQVSRUW LQFOXGLQJ PDULWLPH WUDQVSRUW WHOHFRPPXQLFDWLRQ
EDQNLQJ LQFOXGLQJ RWKHU ILQDQFLDO VHUYLFHV WRXULVP YRFDWLRQDO DQG PDQDJHPHQW
WUDLQLQJHQYLURQPHQWLVVXHVDQGKHDOWK$UWLFOH
8QGHUWKLVIUDPHZRUNWKH3DUWLHVPXWXDOO\HQFRXUDJHGSULYDWHVHFWRUILUPVDQG
RUJDQL]DWLRQVIRUIRVWHULQJHFRQRPLFFRRSHUDWLRQDQGDJUHHGWRGHYHORSDIDYRUDEOH
FOLPDWH IRU LQYHVWPHQW IDFLOLWDWH WKH H[FKDQJH RI FRPPHUFLDO DQG HFRQRPLF
LQIRUPDWLRQ VXSSRUW H[FKDQJHV DQG FRQWDFWV RI EXVLQHVV GHOHJDWLRQV DQG
UHSUHVHQWDWLYHV SURPRWH WKH RUJDQL]DWLRQ RI IDLUV H[KLELWLRQV DQG V\PSRVLD 7KH\
FRQILUPHG WR PDNH HYHU\ HIIRUW WR PDLQWDLQ WKH UHTXLUHG FRQGLWLRQV IRU WKH
LPSURYHPHQWRIWUDGHUHODWLRQV$UWLFOH
'XULQJ *UHHN )RUHLJQ 0LQLVWHU * 3DSDQGUHRX¶V YLVLW WR $QNDUD RQ -DQXDU\ WKH
IROORZLQJDJUHHPHQWVZHUHFRQFOXGHGEHWZHHQ7XUNH\DQG*UHHFH
x $JUHHPHQWRQ&RPEDWLQJ&ULPHHVSHFLDOO\WHUURULVPRUJDQL]HGFULPHLOOLFLWGUXJWUDIILFNLQJ
DQGLOOHJDOLPPLJUDWLRQFDPHLQWRIRUFHRQ-XO\
x $JUHHPHQW RQ UHFLSURFDO 3URPRWLRQ DQG 3URWHFWLRQ RI ,QYHVWPHQWV FDPH LQWR IRUFH RQ
1RYHPEHU
x $JUHHPHQWRQ&RRSHUDWLRQLQWKHILHOGRI7RXULVPFDPHLQWRIRUFHRQ0D\
x $JUHHPHQWRQ&RRSHUDWLRQRQ(QYLURQPHQWDO3URWHFWLRQFDPHLQWRIRUFHRQ-XQH
0RUHRYHU GXULQJ 7 )RUHLJQ 0LQLVWHU ø &HP¶V YLVLW WR $WKHQV RQ )HEUXDU\ WKH IROORZLQJ
DJUHHPHQWVZHUHFRQFOXGHG
x $JUHHPHQWRQ(FRQRPLF&RRSHUDWLRQFDPHLQWRIRUFHRQ1RYHPEHU
x $JUHHPHQWRQ&RRSHUDWLRQLQ6FLHQFHDQG7HFKQRORJ\FDPHLQWRIRUFHRQ0D\
x $JUHHPHQWRQ0DULWLPH7UDQVSRUWFDPHLQWRIRUFHRQ$XJXVW
x $JUHHPHQWRQ&XOWXUDO&RRSHUDWLRQFDPHLQWRIRUFHRQ-XO\
x $JUHHPHQWRQ&RRSHUDWLRQDQG0XWXDO$VVLVWDQFHEHWZHHQ&XVWRPV$GPLQLVWUDWLRQVFDPH
LQWRIRUFHRQ-XQH
)RUGHWDLOLQIRUPDWLRQDERXWWKHDOODJUHHPHQWVVHH.ÕOÕo &XPKXUL\HW'|QHPLQGH«
0RUHRYHU WKH 3DUWLHV DJUHHG WR EXLOG XS WKH 7XUNLVK*UHHN -RLQW (FRQRPLF
&RPPLVVLRQ WR IDFLOLWDWH DQG LPSURYH WKHLU HFRQRPLF FRRSHUDWLRQ 7KLV FRPPLVVLRQ
ZDVLQWHQGHGWRSURSRVHWKHPHDVXUHVWREHWDNHQIRUWKHIXOOLPSOHPHQWDWLRQRIWKH
DERYH$JUHHPHQWHVWDEOLVKWKHJHQHUDOJXLGHOLQHVIRUHFRQRPLFFRRSHUDWLRQLGHQWLI\
DQG SURPRWH RSSRUWXQLWLHV WR LQFUHDVH FRRSHUDWLRQ LQ WKH LQYHVWPHQW ILHOG DQG ZLOO
VHUYHDVDFRQVXOWDWLRQIRUXPEHWZHHQWKH3DUWLHVRQVSHFLILFPDWWHUV$UWLFOH
785.,6+*5((.(&2120,&5(/$7,2167+(3(5,2'$)7(5
,WZLOOEHKHOSIXOWRDQDO\]H7XUNLVK*UHHNUHODWLRQVE\DPRXQWRIIRUHLJQWUDGH
IORZ RI FXUUHQF\ MRLQW LQYHVWPHQWV PRYHPHQWV RI SHRSOH DQG GLPHQVLRQV RI
HFRQRPLF FRRSHUDWLRQ :KHQ 7XUNLVK *UHHN UHODWLRQV DUH VWXGLHG LQ SHULRGV
FRQVLGHULQJWKHGLIIHUHQFHLQWKHDPRXQWVRIWUDGHLWLVQRWEHZURQJWRFRQFOXGHWKDW
VLQFH V HFRQRPLF UHODWLRQV DXJPHQWHG %RWK VLGHG DGPLW WKDW LQ VSLWH RI WKH
SRVLWLYH LQFUHDVH LQ WKH UHFHQW \HDUV LW LV VWLOO SRVVLEOH WR HOHYDWH WKH ILJXUHV HYHQ
PRUH +RZHYHU GHVSLWH WKH LQFUHDVH LQ WUDGH ILJXUHV 3DUWLHV UDWKHU DYRLG WKH
GLVSHUVLRQRIFRRSHUDWLRQILHOGVDQGVHHPSDUWLFXODUO\UHOXFWDQWWRPDNHERUGHUWUDGH
DQGEULQJLQYHVWPHQWIDFLOLWLHVIRUWKHUHDOL]DWLRQRIVROLGSURMHFWV(IIRUWVWRGLVVROYH
VXFK GLIILFXOWLHV ZHUH FRQVLGHUHG GXULQJ WKH 'DYRV 6XPPLW ,Q IDFW DIWHU WKLV
VXPPLWWKH7XUNLVK*UHHN%XVLQHVV&RXQFLOZDVIRXQGHGWRHQDEOHWKHEXVLQHVVPHQ
WRFRQYHQHVRWKDWWKH\FRXOGIRFXVRQIRUPLQJMRLQWSURMHFWV
,Q )HEUXDU\ ZKHQ gFDODQ ZDV FDSWXUHG DQG *UHHFH¶V UHOHYDQFH ZDV GLVFRYHUHG LQ WKH
HYHQW&KDLUPDQRIWKH&RXQFLO5DKPL.RoUHVLJQHGIURPKLVSRVLWLRQLQWKH&RXQFLODQGVLQFHWKHQ
ùDUÕN7DUDWRRNRYHU)RULQIRUPDWLRQRQ7XUNLVK*UHHN%XVLQHVV&RXQFLOVHHKWWSZZZGHLNRUJWU
:KHQ WKH &RXQFLOZDVIRXQGHGLWZDVIRUHVHHQWRSURFHHGIUHHIURPSROLWLFDOLPSDFW+RZHYHUWKLV
FRXOG QRW EH DFKLHYHG DQG WKH SURFHVV ZDV KDUPHG E\ SROLWLFDO WHQVLRQ 3DUWLFXODUO\ ZKHQ 7XUNH\
UHDFWHG VHYHUHO\ DJDLQVW 6WDWHV ZKLFK RIIHUHG VDIH KDYHQ WR WKH 3.. OHDGHU gFDODQ HFRQRPLF
UHODWLRQVZLWKWKRVHFRXQWULHVZHUHVXVSHQGHGDQGHYHQPRUHWUDGHHPEDUJRZDVDOVRLQTXHVWLRQ
7KLVUHDFWLRQZDVLQWHUSUHWHGDVGLYHUJLQJIURPWKHIRXQGLQJSULQFLSOHVRIWKH&RXQFLO7XUNLVKOHDGLQJ
EXVLQHVVPDQ5.Ro¶VUHVLJQDWLRQIURPWKH&RXQFLOZDVFULWLFL]HGLQ*UHHFHGXHWKLVFRQWUDGLFWLRQ
2QWKHVDPHWRSLF6HH³.Ro7UN<XQDQ´ )HEUXDU\
5DGLNDO
KWWSZZZUDGLNDOFRPWUHNRQRPLNRFKWPO-XQH
LVVXHVRUJDQL]HGFRQIHUHQFHVLQWKLUGFRXQWULHVDQGVHDUFKHGIRUSURVSHFWVRIMRLQW
LQYHVWPHQW SURMHFWV DQG WKXV FRQWULEXWHG WR WKH GHYHORSPHQW RI HFRQRPLF
FRRSHUDWLRQ+RZHYHUWKHVHDWWHPSWVZHUHQRWIUXLWIXOVLQFHSROLWLFDOXQUHVWKLQGHUHG
UDSSURFKHPHQW DQG WKH OHYHO RI HFRQRPLF FRRSHUDWLRQ GLG QRW UHDFK GHVLUHG
GLPHQVLRQV2QWKHRWKHUKDQGVDQGVGLVSOD\HGFRQVLGHUDEOHGLIIHUHQFH
LQ WKH DVSHFW RI FRQIOLFWV PDNLQJ DQ LPSDFW XSRQ HFRQRPLF UHODWLRQV 'HVSLWH WKH
GHFUHDVHLQIRUHLJQWUDGHFDSDFLW\GXULQJWKHWURXEOHVRPH\HDUVRILQWKH
VLWLQFUHDVHGUHJDUGOHVVRIWKHFRQWURYHUV\LQSROLWLFDOUHODWLRQV6HH7DEOH,
+RZGLGWKHSROLWLFDOLVVXHVHIIHFWWKHHFRQRPLFUHODWLRQVEHWZHHQ7XUNH\DQG
*UHHFH"'LGWKHSROLWLFDOSUREOHPVLQIOXHQFHIRUHLJQWUDGHQHJDWLYHO\",WLVDIDFWWKDW
SROLWLFDOUHODWLRQVEHWZHHQ7XUNH\DQG*UHHFHGLVSOD\HGXSVDQGGRZQVLQOLQHZLWK
WKH FRXUVH RI GLVSXWHV 7KLV VLWXDWLRQ FDQ EH HDVLO\ REVHUYHG EHWZHHQ
EHLQJDSHULRGRIWHQVLRQV)RULQVWDQFHLQD\HDUDIWHUWKH7XUNLVKLQWHUYHQWLRQ
WR&\SUXVWKHWUDGHILJXUHVKDGIDOOHQIURPPLOOLRQWRWKRXVDQG,QLW
LQFUHDVHGWRPLOOLRQDQGLQWRLQWUDGHGURSSHGEDFNWRLQ
UHERXQGHGWR7KHWRWDOURVHLQWRDQGIHOOLQWR,Q
WUDGHMXPSHGWREXWVKUDQNLQWRPLOOLRQ,QWKHSHULRGDIWHU
7XUNH\ DQG *UHHFH FDPH WR WKH EULQN RI ZDU ZKHQ WKH .DUGDN 5RFNV FULVLV
EURNHRXW+RZHYHUGXULQJWKHFULVLV\HDUDQGLQWKHIROORZLQJ\HDUVWKHWUDGH
ILJXUHV FRQWLQXHG WR LQFUHDVH )LQDOO\ WKH IRUHLJQ WUDGH FDSDFLW\ NHSW RQ JURZLQJ LQ
WKHUHFHQW\HDUVVHH7DEOH,
2Q WKH RWKHU KDQG RQH FDQ REVHUYH FKDQJH LQ WKH NLQGV RI JRRGV DQG
VHUYLFHV H[SRUWHG DQG LPSRUWHG EHWZHHQ DQG $V IRU WKH H[SRUW LWHPV
IURP 7XUNH\ WR *UHHFH ZKLOH DJULFXOWXUDO SURGXFWV DQG PHWDO SURGXFWV H[KLELWHG
VOLJKWFKDQJHWKHUHZDVFRQVLGHUDEOHFKDQJHLQWKHVKDUHRILQGXVWULDOSURGXFWV
)DUXNùHQ $QNDUD0ONL\HOLOHU%LUOL÷L9DNIÕ<D\ÕQODUÕSS
(JH¶QLQ øNL <DNDVÕQGD (NRQRPL
)RUDQDQDO\]HRQWKHLQGXVWULDODQGWUDGHVWUXFWXUHVRI*UHHNDQG7XUNLVKHFRQRPLHVVHH$QJHORV
.RWLRV DQG *HRUJH 3HWUDNRV ³7KH ,QGXVWULDO DQG 7UDGH 6WUXFWXUH RI WKH *UHHN DQG 7XUNLVK
(FRQRPLHV 3RVVLELOLWLHV IRU &RRSHUDWLRQ´ KWWSZZZSUGXWKJUUHVHDUFK'3XWKSUGGS
BHQSGI -XQH )RU WKH GLVWULEXWLRQ RI H[SRUW DQG LPSRUW EHWZHHQ 7XUNH\ DQG *UHHFH
DFFRUGLQJWR\HDUVVHH$QQH[,
$V FDQ EH VHHQ LQ WDEOH WKRXJK IUHTXHQW GLVSXWHV EURNH XS LQ WKH SHULRG
DIWHU WKH IRUHLJQ WUDGH ZDV QRW LQIOXHQFHG PXFK E\ WKLV SROLWLFDOO\ VKDN\
VLWXDWLRQ 7KH ILUVW KDOI RI WKH V GHVSLWH WKH FRQFOXGLQJ RI $WKHQV DQG ,VWDQEXO
GHFODUDWLRQV SOXV WKH 0DGULG 'HFODUDWLRQ ZDV VSHQW IRU HIIRUWV RI WU\LQJ WR EXLOG XS
PXWXDOFRQILGHQFH3DUWLFXODUO\*UHHFH¶VFODLPVDERXW7XUNH\¶VYLRODWLQJQDWLRQDODLU
VSDFH OLPLWV RI *UHHFH DQG ),5 YLRODWLRQV EURXJKW XS WKH QHHG IRU &%0V 'XULQJ
DIWHU*UHHFH¶VDSSURYDORIWKH81/DZRIWKH6HD7XUNH\GHFODUHGWRLW
ZRXOGFRQVLGHU³FDVXVEHOOL´*UHHNDWWHPSWVWRZLGHQLWVWHUULWRULDOZDWHUVOLPLWWR
PLOHVLQWKH$HJHDQ)ROORZLQJWKDWLQ.DUGDN5RFNVFULVHVEURNHRXWDQGZDV
VHWWOHG LQ 7KDQ WKH WHQVLRQ LQYROYLQJ WKH GHSOR\PHQW RI 6 PLVVLOHV WR
&\SUXV FDPH WR IRUH )LQDOO\ LQ )HEUXDU\ WKH gFDODQ FULVHV FRQVWLWXWHG WKH
FOLPD[ RI DOO WHQVLRQV $OWKRXJK DOO WKHVH QHJDWLYH LPSDFWV LQIOXHQFHG HFRQRPLF
UHODWLRQV RQ WKH ZKROH WKH IRUHLJQ WUDGH ILJXUHV LQFUHDVHG FRQVLGHUDEO\ $QRWKHU
UHDVRQIRUWKLVLQFUHDVHLVRIFRXUVH7XUNH\¶VHQWHULQJLQWRWKH&XVWRPV8QLRQZLWK
WKH(8DWWKHHQGRI
7DEOH,
$118$/)25(,*175$'(6$7,67,&62)785.(<$1')25(,*175$'(%(7:((1785.(<$1'*5((&(;'2/$5
GWPJRYWUHDG6(.725LWXON[OVKWWSZZZGWPJRYWUHDG6(.725LKXON[OV
'XULQJWKH\HDUVIRUHLJQWUDGHRI7XUNH\ERRPHGIURPELOOLRQ
WR ELOOLRQ 'XULQJ WKH VDPH SHULRG IRUHLJQ WUDGH ZLWK *UHHFH OLNHZLVH
LQFUHDVHGIURPPLOOLRQWRELOOLRQ$VVKRZHQLQWDEOHWKHVKDUHRI
*UHHFHZLWKLQWRWDOWUDGHRI7XUNH\LQFUHDVHGIURPWR,QIDFWWKHUHLV
PRUH SRWHQWLDO IRU WKHLQFUHDVHRIIRUHLJQWUDGHDQGHFRQRPLFFRRSHUDWLRQEHWZHHQ
7XUNH\ DQG *UHHFH ,I ZH SDUWLFXODUO\ FRQVLGHU WKDW HFRQRPLF UHODWLRQV DQG WUDGH
FRQWLQXHGHYHQLQWLPHVZKHQWHQVLRQH[LVWHGEHWZHHQWKHWZRWKHUHLVUHDOKRSHWR
EHRSWLPLVWLF(FRQRPLFUHODWLRQVFRQWLQXHGGXULQJWKHWLPHRIXWPRVWWHQVLRQHYHQ
ZKHQ WKH ULVN RI KRW ZDU H[LVWHG 7KH RQH H[FHSWLRQ ZDV LQ ZLWK 7XUNH\¶V
LQWHUYHQWLRQ LQ &\SUXV 7KH IDOO LQ WKH WUDGH FDSDFLW\ RFFXUUHG LQ DQG GLG QRW
UHDFKOHYHOVXQWLO,QWKH\HDUV
WUDGHYROXPHSDUWLDOO\GHFUHDVHG%XWLQWKHIROORZLQJ\HDUVWKHLQFUHDVHUHVWDUWHG
&+$57,
)25(,*175$'(%(7:((1785.(<$1'*5((&(
)25(,*175$'(92/80(6
(;3257
;
,03257
92/80(
(;3257
,03257
92/80(
'XULQJWKHVHYHUHHYHQWVRIWKH.DUGDNFULVLVIRUHLJQWUDGHUHODWLRQVZHUHQRW
KDUPHGPXFK,QUHDOILJXUHVWUDGHYROXPHEHWZHHQ7XUNH\DQG*UHHFHLQZDV
PLOOLRQDQGUHDFKHGPLOOLRQLQ:KHQWKH.DUGDNFULVLVLVVHHQIURP
WKHDQJHOWKDWLWLQYROYHGWKHQDWLRQDOVRYHUHLJQW\DQGWHUULWRULDOLQWHJULW\RIWKHWZRLW
LV KDUG WR WKLQN RI D UHOHYDQFH EHWZHHQ WKH OHYHO RI IRUHLJQ WUDGH DQG SROLWLFDO
GLVSXWHV+HUHLWVKRXOGEHQRWHGWKDWWKHWHQVLRQLQFUHDVHGPLOLWDULO\DQGSROLWLFDOO\DW
RQFHDQGGLSORPDWLFSURFHVVZHUHVWDUWHGEHIRUHWKHWHQVLRQWXUQHGLQWRZDU1HLWKHU
VLGH SUHIHUUHG ZDU GHVSLWH WKH QDWXUH RI WKH FRQIOLFW EHLQJ H[WUHPHO\ H[SORVLYH
$QRWKHUGHWHUUHQWIDFWRUZDVWKDW&XVWRPV8QLRQ$JUHHPHQWZLWKWKH(8ZDVEHLQJ
KDQG\IRUIRUHLJQWUDGHSDUWLFXODUO\IRULPSRUWV
&+$57,,
*UHHFH
V6KDUHLQ7XUNH\
V9ROXPHRI([SRUW
*UHHFH
V6KDUHLQ7XUNH\
V
9ROXP HRI([SRUW
<HDUV
&+$57,,,
*UHHFH
V6KDUHLQ7XUNH\
V9ROXPHRI,PSRUW
*UHHFH
V6KDUHLQ7XUNH\
V
9ROXPHRI,PSRUW
<HDUV
&+$57,9
*UHHFH
V6KDUHLQ7XUNH\
V9ROXPHRI)RUHLJQ7UDGH
*UHHFH
V6KDUHLQ7XUNH\
V9ROXPH
RI)RUHLJQ7UDGH
<HDUV
+RZHYHULQWKH\HDURIWKHgFDODQFULVLVWKHFDVHZDVGLIIHUHQW,QWKLV
HYHQW7XUNLVKSXEOLFRSLQLRQDJDLQVW*UHHFHIRUFHG7XUNLVKFRPSDQLHVZRUNLQJZLWK
*UHHNFRXQWHUSDUWVWRUHYLHZWKHLUEXVLQHVVWLHV5DKPL.Ro&KDLUPDQRIWKH%RDUG
RI.Ro+ROGLQJUHVLJQHGIURPWKHSUHVLGHQF\RI7XUNLVK*UHHN%XVLQHVV&RXQFLODQG
VDLG ³:H UHDOO\ ZRUNHG KDUG IRU WKH LPSURYHPHQW RI EXVLQHVV UHODWLRQV FXOWXUDO
UHODWLRQV DQG IURP WLPH WR WLPH HYHQ SROLWLFDO UHODWLRQV ZLWK RXU QHLJKERU *UHHFH
+RZHYHU ZH ZHUH QRW UHFHLYHG ZLWK WKH VDPH ZDUPQHVV DQG KRVSLWDOLW\ :H ZHUH
WKHRQHVZKRWRRNWKHLQLWLDWLYHLQHYHU\DWWHPSW$OZD\VZHZHUHWKHRQHVZKRSXW
WKHWKLQJVWRWKHQRUPDOFRXUVH8QIRUWXQDWHO\DOOWKHVHHIIRUWVFRXOGQRWJREH\RQG
SHUVRQDOIULHQGVKLSOLPLWV6WLOOZHZHUHGHWHUPLQHGWRJRRQDQGEHOLHYHGZHVKRXOG
QRWJLYHXS'XULQJWKHSURFHVV,KDGWRIDFHFULWLFLVPVIURPLQVLGHDQGRXWVLGHRXU
JURXS 6DG WR VD\ UHFHQW GHYHORSPHQWV SURYHG WKDW DOO RXU HIIRUWV ZHUH LQ YDLQ ,W
VHHPVWKHDJHQGDRIRXU*UHHNIULHQGVZDVWRWDOO\GLIIHUHQWIURPRXUV8QGHUWKHVH
FLUFXPVWDQFHVDQGLQP\RSLQLRQWKHPLVVLRQRIWKH&RXQFLOORVWLWVPHDQLQJ7KDWLV
ZK\ , ZRXOG OLNH WR EH H[FXVHG IURP P\ SRVLWLRQ LQ WKH&RXQFLO´(UNXW<FHR÷OX
WKH &KDLUPDQ RI WKH 7XUNLVK ,QGXVWULDOLVWV DQG %XVLQHVVPHQ $VVRFLDWLRQ 7h6ø$'
GUDZLQJ DWWHQWLRQ WR WKH *UHHN VXSSRUW WHUURULVP DGGHG ³7HQ \HDUV DJRZHVWDUWHG
HIIRUWVLQJRRGZLOOFUHDWHGSODWIRUPIRUGHEDWHVWRRNXSDOOSUREOHPVRQHE\RQHVR
WKDW WKH *UHHN JRYHUQPHQWV DQG SROLWLFLDQV FRXOG KHDU XV %XW ZH UHFHLYHG QR
SRVLWLYH UHVSRQVH IURP *UHHN EXVLQHVVPHQ« 7KH\ FKRVH WR KROG ORZ SURILOH
PHHWLQJVXQOLNHWKHDPSOHRQHVLQ7XUNH\,WORRNHGDVWKRXJKWKH\GLGQRWZDQWWKHLU
SROLWLFLDQVWRMRLQWKHPHHWLQJVRUWKHSROLWLFLDQVZHUHXQZLOOLQJWRMRLQ7KHDFWLYLWLHV
WXUQHG RXW WR EH LQHIILFLHQW DQG DFFRUGLQJO\ ZH DSSURYH WKH &RXQFLO¶V GHFLVLRQ
0RUHRYHU WKLV GHFLVLRQ VKRXOG EH FRQFHLYHG DV D SURWHVWDWLRQ RI 7XUNLVK SXEOLF
RSLQLRQ´
³.Ro7UN<XQDQ´
³7h6ø$'¶GDQ<XQDQLVWDQD6HUW7DYÕU´&XPKXUL\HW0DUFKS
LQIRUPLQJ KLV UHVLJQDWLRQ DQG , ZURWH WR KLP LQ UHSO\ WKDW FRRSHUDWLRQ DPRQJ
EXVLQHVVPHQ VKRXOG FRQWLQXH EHFDXVH ZH DUH QRW SROLWLFLDQV DQG ZH GR QRW GHDO
ZLWKSROLWLFDOLVVXHVRUWU\WRGLVVROYHSROLWLFDOSUREOHPV,ZRXOGOLNH\RXWRQRWHWKDW,
GRQRWILQGLWUHDVRQDEOHLQWKHOLPLWVRIFRPPRQVHQVH,ZLVKKHORRNVRYHULWRQFH
PRUH7KHLQWHUUXSWLRQRIRXUUHODWLRQVZLOOQRGRXEWHIIHFW%6(&QHJDWLYHO\WRR,GR
QRWZDQWWRJHWLQWRWKHDUJXPHQWZKHWKHUWKHJRYHUQPHQWVGLGWKHULJKWRUQRW%XWLW
VKRXOGEHUHPHPEHUHGWKDWWZRFRXQWULHVJRWRYHUDFRQIOLFWOLNH.DUGDN&ULVLVLQWKH
UHFHQWSDVWDQGZHGLGQRWDOORZWKHUHODWLRQVZLWKLQWKHFRXQFLOWREHHIIHFWHGWKHQ
2XU FRQWDFWV VKRXOG QHYHU EH FXW 2QO\ WKLV ZD\ ZH FDQ EULQJ RXU PDMRU
SUREOHPVWRWKHQHJRWLDWLRQWDEOH´$VIRU*UHHFH¶VUHOHYDQFHLQWKHgFDODQFDVHKH
VDLG ³, DP QRW D SROLWLFLDQ VR , FDQQRW VD\ ZK\ WKH *UHHN JRYHUQPHQW FRQVLGHUHG
VXFKVWDQFHRQWKHPDWWHU,WLVQRWUHDVRQDEOHWRJHWLQWRLVVXHVRXWRIRXULQWHUHVW,Q
UHSO\WR0U.Ro¶VUDWKHULUHIXOOHWWHU,UHPDUNHGWKDWZHVKRXOGYLHZWKHPDWWHUDJDLQ
DV EXVLQHVVPHQ *RRG RU EDG VKRXOG ZH VDFULILFH HYHU\WKLQJ ZH DFFRPSOLVKHG LQ
ORQJ \HDUV IRU VRPHWKLQJ ZKLFK LV RYHU QRZ" :KHQ g]DODQG3DSDQGUHRXIRXQGHG
WKH 7XUNLVK*UHHN %XVLQHVV &RXQFLO WKH\ FRQVLGHUHG WKLV VWHS WR EH D EULGJH WR
FRQQHFW WKH WZR QDWLRQV , ZURWH OHWWHUV WR 0U .Ro DQG ùDUÕN 7DUD VD\LQJ ZH ZHUH
UHDG\WRGLVFXVVDQ\WLPHDQGDQ\ZKHUHWKHSRLQWVZKLFKZHIDOODSDUWDVZHOODVWKH
RQHVZKLFKEULQJXVWRJHWKHU7KHHOHPHQWVWKDWXQLWHXVDUHIDUPRUHWKDQWKHRQHV
WKDWVSOLWXVDSDUW´
'XULQJ WKH \HDUV RI WKH gFDODQ FULVLV ZKLOH SROLWLFDO UHODWLRQV
GLVSOD\HG D YRODWLOH WUHQG HFRQRPLF UHODWLRQV ZHUH QRW PXFK HIIHFWHG E\ WKDW
LQVWDELOLW\)XUWKHUPRUHLQWKHODVWWZR\HDUVWUDGHILJXUHVUHDFKHGDQG
PLOOLRQ OHYHO$VPDUNHGLQ7DEOH,,DOOWKHUHDFWLRQVWR*UHHFH¶VUHOHYDQFHLQWKH
gFDODQFULVLVOLNHWKHLQWHUUXSWLRQRIHFRQRPLFUHODWLRQVFDQFHOLQJRIWKHFRQWUDFWV
IRUZDUGHG WR *UHHN WUDQVSRUW YHVVHOV YLVD UHTXLUHPHQW IRU *UHHN FLWL]HQV ZHUH
WHPSRUDU\ DQG QRW HYHQ DV HIILFLHQW DV WKH ER\FRWWLQJ RI ,WDOLDQ JRRGV IRU VLPLODU
UHDVRQV7KLVLVDOVRGXHWRWKHIDFWWKDWWKHDPRXQWRIWUDGHZLWK*UHHFHFRYHUV
RQO\RI7XUNH\¶VWRWDOWUDGHFDSDFLW\6HH7DEOH,
<RUJR.ÕUEDNL³<XQDQOÕ3DWURQ'HUWOL´5DGLNDO0DUFK
7KLV SUDFWLFH LV D XQLTXH H[DPSOH LQ WKH FRXUVH RI 7XUNLVK )RUHLJQ 3ROLF\ ZKHUH PHDQV RI
FRPPXQLFDWLRQ QDWLRQDO SXEOLF RSLQLRQ DQG IRUHLJQ WUDGH ZHUH XVHG DV GHWHUUHQW IDFWRUV 'XULQJ WKH
7DEOH,,
$118$/(;3257 $118$/,03257
,7$/<
*5((&(
6RXUFH3UHSDUHGE\XVLQJ6,678)78VWDWLVWLFV
)RUHLJQ7UDGH6WDWLVWLFVE\&RXQWULHVKWWSZZZGLHJRYWU(1*/,6+621,67',67,&,67WDEORODUB(QKWP
,WVKRXOGEHQRWHGWKDWWKHLQFRPHIURPWRXULVPERUGHUWUDGHDQGVKXWWOHWUDGH
DUH QRW LQFOXGHG LQ WKH *UHHN WUDGH ILJXUHV ,I WKH ILJXUHV RI WKHVH VHFWRUV DUH DOVR
LQFOXGHGDFDSDFLW\RIELOOLRQLVLQTXHVWLRQ$VVKRZHQE\WKHVWDWLVWLFVRI7XUNLVK
0LQLVWU\RI&XOWXUHLQOLQHZLWKWKHQXPEHURIWRXULVWVYLVLWLQJ7XUNH\HYHU\\HDUWKHUH
LV DQ LQFUHDVH LQ WKH QXPEHU RI *UHHN JXHVWV DOVR +RZHYHU WKH OHYHO RI WRXULVP
EHWZHHQ7XUNH\DQG*UHHFHLVVWLOOYHU\ORZ$VZLOOEHREVHUYHGLQ7DEOH,,,LQWKH
QXPEHURI7XUNLVKWRXULVWVYLVLWLQJ*UHHFHWKHFDVHLVPRUHHYLGHQW
7DEOH,,,
*5((&(
727$/
6RXUFH 7XUNLVK 0LQLVWU\ RI &XOWXUH DQG 7RXULVP 3UHSDUHG E\ XVLQJ ³7XUL]P øVWDWLVWLNOHUL 6ÕQÕU *LULúdÕNÕú 7RXULVP
6WDWLVWLFV
KWWSZZZNXOWXUJRYWUSRUWDOLVWDWLVWLNBWUDVS
785.(<
727$/
6RXUFH*UHHN1DWLRQDO7RXULVP2UJDQLVDWLRQ³$UULYDOVRI)RUHLJQ7RXULVWVDW)URQWLHUVE\&LWL]HQVKLS´
KWWSZZZJQWRJUHEKWPO
gFDODQ FULVLV KH ZDV NHSW IRU D ZKLOH LQ ,WDO\ ZKLFK FUHDWHG H[WUHPH UHDFWLRQ LQ WKH 7XUNLVK 3XEOLF
2SLQLRQDQGER\FRWWZDVVWDUWHGDJDLQVW,WDOLDQJRRGV,QLPSRUWVIURP,WDO\ZDVWRWDOLQJWR
ELOOLRQ EXW LQ WKLV VXP GHFUHDVHG E\ DQG FDPH WR RQO\ ELOOLRQ ,Q ,WDO\ ZDV
WK
WKHVHFRQGELJFRXQWU\LQWKHOLVWRILPSRUWVRI7XUNH\DQG*UHHFHZDVWKH :LWKLQWKHWRWDOLPSRUWV
RI 7XUNH\ ELOOLRQ ,WDO\¶V VKDUH GURSSHG IURP WR ,Q ,WDO\ VWDUWHG WR ULVH DJDLQ
DQG HQGHG WKH \HDU ZLWK ELOOLRQ 7KH VDPH \HDU 7XUNH\¶V LPSRUWV ELOOLRQ LQFUHDVHG
E\ 7KHVH ILJXUHV LQGLFDWH WKDW IRUHLJQ WUDGH ZDV PRUH GHWHUUHQW LQ WKH FDVH RI ,WDO\ EXW QRW WKDW
PXFKIRU*UHHFH
*UHHN,QYHVWPHQWVZLWKLQ7RWDO)RUHLJQ,QYHVWPHQWVLQ7XUNH\
*UHHN FLWL]HQV WR UHVLGH LQ 7XUNH\ DQG SXUVXH FRPPHUFLDO DFWLYLW\ ZHUH
GHWHUPLQHGE\WKH&RQYHQWLRQ5HVSHFWLQJ&RQGLWLRQVRI5HVLGHQFHDQG-XULVGLFWLRQ
LQWKH/DXVDQQH3HDFH7UHDW\EDVHGRQUHFLSURFLW\SULQFLSOH+RZHYHULWKDGWDNHQ
ORQJHU WR FRQFOXGH LVVXHV DV WR ZKR ZRXOG EH FRQVLGHUHG DV SHUPDQHQW UHVLGHQWV
DQG WKLV FODXVH ZDV GHWHUPLQHG RQ 2FWREHU E\ WKH &RQYHQWLRQ
G¶(WDEOLVVHPHQW GH &RPPHUFH HW GH 1DYLJDWLRQ HQWUH OD 7XUTXLH HW OD
*UqFH&RQYHQWLRQ RI 5HVLGHQFH &RPPHUFH DQG 1DYLJDWLRQ EHWZHHQ 7XUNH\ DQG
*UHHFH ,W DOORZHG *UHHN FLWL]HQV WR UHVLGH DQG OHDG DFWLYH EXVLQHVV LQ 7XUNH\
+RZHYHUWKLVDJUHHPHQWZDVDQQXOOHGZLWKPRQWKVQRWLFHZKHQWKHSUHVVXUHDQG
YLROHQFH H[HUWHG RQ WKH 7XUNLVK FRPPXQLW\ LQ &\SUXV UHDFKHG XQDFFHSWDEOH
GLPHQVLRQV ,W ZDV REVHUYHG WKDW UHODWLRQV ZLWK *UHHFH GHWHULRUDWHG XSRQ WKH
UHOHDVH RI WKH 'HFUHH GHPDQGLQJ *UHHN FLWL]HQV WR OHDYH 7XUNH\ ,Q *UHHFH
UXWKOHVVSUHVVXUHZDVH[HUWHGRYHUWKH7XUNLVKPLQRULW\OLYLQJLQ:HVWHUQ7KUDFH
'XULQJWKHVLWZDVSRVVLEOHWRWUDFHWKHQHJDWLYHLPSDFWRISROLWLFDOUHODWLRQVRQ
WKHIOXFWXDWLRQRIWUDGHILJXUHV7KHDPRXQWRIWUDGHZKLFKZDVPLOOLRQLQ
LQFUHDVHG WR PLOOLRQ LQ GURSSHG WR PLOOLRQ LQ LPSURYHG D OLWWOH LQ
WRPLOOLRQLQGURSSHGWRDQGGUHZEDFNWRPLOOLRQLQ
,Q OLQH ZLWK WKH IOXFWXDWLRQV LQ SROLWLFDO UHODWLRQV *UHHN LQYHVWPHQW LQ 7XUNH\
KDV EHHQ UDWKHU VPDOO +HUH WKHUH LV DQ H[FHSWLRQ *UHHNFLWL]HQVRI7XUNLVKRULJLQ
$FFRUGLQJ WR WKH GDWD SURYLGHG E\ WKH7XUNLVK7UHDVXU\8QGHUVHFUHWDULDWEHWZHHQ
DQG WKH ROGHVW *UHHN LQYHVWPHQW LQ 7XUNH\ ZHQW EDFN WR
)RUWKHIXOOWH[WRIWKH$JUHHPHQWVHH.ÕOÕo&XPKXUL\HW'|QHPLQGH«SS
)RU D GHWDLOHG DQDO\VLV RQ WKH WRSLF VHH %DVNÕQ 2UDQ 7UN<XQDQ øOLúNLOHULQGH %DWÕ 7UDN\D
6RUXQX$QNDUD0ONL\HOLOHU%LUOL÷L9DNIÕ<D\ÕQODUÕ
)RU WKH IDOO LQ WKH WUDGH ILJXUHV GXULQJ WKLV VWDJH WKHUH FDQ EH WKH HIIHFW RI 'HFUHH
DFFRUGLQJ WR WKDW *UHHN FLWL]HQ EXVLQHVVPHQ KDG WR OHDYH 7XUNH\ DV PXFK DV WKH SUHVVXUH H[HUWHG
RQ7XUNLVKFRPPXQLW\LQ&\SUXV
+RZHYHU IROORZLQJ WKDW GDWH WKHUH KDV EHHQ FRQVLGHUDEOH LQFUHDVH LQ WKH
QXPEHURILQYHVWPHQWVVLQFHWKH'HFUHHZDVDQQXOOHGLQ
8QWLO WKH HQG RI -XQH WKH QXPEHU RI *UHHN FRPSDQLHV RSHUDWLQJ ZLWK
IRUHLJQ FDSLWDO LQ 7XUNH\ LV 7KH *UHHN VKDUH ZLWKLQ WKH IRUHLJQ LQYHVWPHQW LQ
7XUNH\FRYHUVRQO\RIWKHWRWDO
%HWZHHQDQG-XQHWKHWRWDOIRUHLJQLQYHVWPHQWDOORZHGE\7XUNH\
ZDVELOOLRQ:KHUHDVWKHVKDUHRI*UHHFHLQWKLVVXPZDVRQO\PLOOLRQ
7KHEUDQFKRI2O\PSLF$LUZD\VIRXQGHGLQ,VWDQEXOLQZLWKPLOOLRQ7/FDSLWDO
KWWSZZZ\DVHGRUJWU?JHQHO?GRFV?\DEVHUILUPDODU[OV-XO\
)RUWKHOLVWRIIRUHLJQFDSLWDOFRPSDQLHVLQ7XUNH\VHH
KWWSZZZ\DVHGRUJWU?JHQHO?GRFV?\DEVHUILUPDODU[OV
)RU WKH FRPSDUDWLYH GDWD RI *UHHN FDSLWDO FRPSDQLHV DPRQJ RWKHUV OHDGLQJ FRPPHUFLDO DFWLYLWLHV
LQ7XUNH\SOHDVHVHHKWWSZZZWUHDVXU\JRYWUVWDW\DEVHU\EVVWDWV[OV-XO\
$V ZLOO EH REVHUYHG WKRXJK PRVW RI WKH *UHHN FDSLWDO FRPSDQLHV DUH OHG E\ *UHHN SHRSOH WKH\ DOVR
KDYH 7XUNLVK SDUWQHUV 7KH QXPEHU RI FRPSDQLHV FRPSOHWHO\ OHG E\ *UHHN SHRSOH DQG *UHHN FDSLWDO
DUHQRWVRPDQ\
'DWDRQGLUHFWLQYHVWPHQWVLVVDLGWREHOLPLWHG³%RWKFRXQWULHVHQWHULQWRGLUHFWLQYHVWPHQWWKURXJK
WKLUG SDUWLHV DFFRUGLQJO\ LW LV GLIILFXOW UHDFK GHILQLWH LQIRUPDWLRQ RQ 7XUNLVK LQYHVWPHQW LQ *UHHFH DQG
*UHHN LQYHVWPHQW LQ 7XUNH\´ ³<XQDQLVWDQ (NRQRPLVL YH 7UNL\H LOH øOLúNLOHUL (NLP2FWREHU ´
)RUUHOHYDQWGDWDVHHKWWSZZZWUHDVXU\JRYWUVWDW\DEVHU\EVVWDWV[OV-XO\
7DEOH,9
*UHHN&DSLWDOLQWKH%UHDNGRZQRI)RUHLJQ&DSLWDO&RPSDQLHV2SHUDWLQJLQ7XUNH\$VRI'HFHPEHU
7RWDO
6RXUFH6,6783UHSDUHGE\XVLQJ³%UHDNGRZQRI$XWKRULVHG)',$FFRUGLQJWR+RPH&RXQWULHV´7DEOHV
KWWSZZZKD]LQHJRYWUHQJOLVK\EV\EVVWDWV[OV
KWWSZZZKD]LQHJRYWUHQJOLVK\EVKRPHFRXQWU\LQJKWP-XO\
KWWSZZZKD]LQHJRYWUHQJOLVK\EVXONHLQJKWP-XO\
5HDO(VWDWH$FTXLVLWLRQRI*UHHN&LWL]HQVLQ7XUNH\
IRUHLJQHUV DV UHDO SHUVRQ RU OHJDO SHUVRQ LQ 7XUNH\ 7KH 'HFUHH GDWHG
1RYHPEHU QXPEHUHG VDLG ³,Q UHFLSURFDWLRQ RI DOO NLQGV RIPHDVXUHV
DQGWUDQVDFWLRQVRIWKH*UHHN*RYHUQPHQW
7KH 'HFUHH ZDV SXW LQWR IRUFH GHSHQGLQJ RQ ³7KH /DZ RQ WKH 0HDVXUHV 7DNHQ IRU WKH
6WDWHV:LWKLQWKH%RUGHUVRI:KLFK7XUNLVK&LWL]HQVDUH$OORZHGWR2ZQ5HDO(VWDWHDQLQ5HFLSURFLW\
3ULQFLSOH DQG 6DPH 3ULYLOHJHV *UDQWHG WR 7KDW 6WDWH &LWL]HQV :LWKLQ 7XUNH\ +XGXWODUÕ 'DKLOLQGH
7HEDDPÕ]ÕQ (PODNLQH 9D]L\HW (GHQ 'HYOHWOHULQ 7UNL\H¶GHNL 7HEDDODUÕ (PODNLQH 0XNDEHOHL %LOPLVLO
7HGDELUL øWWLKD]Õ +DNNÕQGD .DQXQ´ )RU WKH IXOO WH[W RI WKH /DZ VHH
$FFRUGLQJWR$UWLFOHRIWKH/DZ
³,Q FDVH SURSHUW\ ODZ RI WKH 7XUNLVK FLWL]HQV LQ D 6WDWH LV SDUWO\ RU FRPSOHWHO\ GHOLPLWHG E\
DGPLQLVWUDWLYH GHFLVLRQV RU H[FHSWLRQDO ODZV XQGHU WKH UHFLSURFLW\ SULQFLSOH WKH VDPH SURSHUW\ ODZ
JUDQWHG IRU WKHLU FLWL]HQV LQ 7XUNH\ FDQ EH SDUWO\ RU FRPSOHWHO\ OLPLWHG DQG FRQILVFDWHG E\ WKH &RXQFLO
RI0LQLVWHUV´
6XFFHVVLYH LQFRPH JDLQHG IURP WKH SURSHUWLHV GXH WR WKH OLTXLGDWLRQ ZLOO EH SDLG WR WKH
GLVSRVVHVVHG 7XUNLVK FLWL]HQV XSRQ WKH SUHVHQWDWLRQ RI YHULWDEOH GRFXPHQWV´ >8QRIILFLDO WUDQVODWLRQ@
:KHQ *UHHN *RYHUQPHQW GHOLPLWHG WKH SURSHUW\ ULJKWV RI WKH 7XUNLVK FLWL]HQV LQ *UHHFH XSRQ WKH
&\SUXV LQFLGHQWV LQ 7XUNH\ DOVR KDG WR WDNH VLPLODU UHFLSURFDO PHDVXUHV RQ WKH *UHHN
FLWL]HQVLQDFFRUGDQFHZLWKDP/DZ7KLVPHDVXUHZDVDSROLWLFDODFWLRQDQGZRXOGEHH[HPSWHGIURP
SURVHFXWLRQDQGZDVUDWLILHGE\WKH&RXQFLORI6WDWHWRR
5HVLGHQFH RI IRUHLJQHUV DQG ULJKWV JUDQWHG WR WKHP IRU RZQLQJ UHDO HVWDWH LQ 7XUNH\ SOXV WKH
DSSOLFDWLRQ RI WKH UHFLSURFLW\ SULQFLSOH ZHUH LQFOXGHG LQ WKH $UWLFOHV DQG RI WKH &RQYHQWLRQ
5HVSHFWLQJ &RQGLWLRQV RI 5HVLGHQFH DQG -XULVGLFWLRQ LQ WKH /DXVDQQH 3HDFH 7UHDW\ 7KHUHIRUH WKH
SURYLVLRQVRIWKH/DZGDWHG0D\QXPEHUHGVKRXOGEHLQWHUSUHWHGZLWKLQWKDWIUDPH
$FFRUGLQJ WR $UWLFOH RI WKH &RQYHQWLRQ ³7KH DSSOLFDWLRQ LQ 7XUNH\ RI HDFK RI WKH SURYLVLRQV RI WKLV
&KDSWHU WR QDWLRQDOV DQG FRUSRUDWLRQV RI WKH RWKHU &RQWUDFWLQJ 3RZHUV LV H[SUHVVO\ VXEMHFW WR
FRPSOHWH UHFLSURFLW\ EHLQJ DFFRUGHG WR 7XUNLVK QDWLRQDOV DQG FRUSRUDWLRQV LQ WKH WHUULWRULHV RI WKHVDLG
3RZHUV
6KRXOG RQH RI WKHVH 3RZHUV UHIXVH LQ FRQVHTXHQFH RI D SURYLVLRQ LQ LWV ODZ RU IRU DQRWKHU UHDVRQ WR
DFFRUGUHFLSURFLW\LQUHVSHFWRIDQ\VXFKSURYLVLRQLWVQDWLRQDOVDQGFRUSRUDWLRQVZLOOQRWEHHQWLWOHGWR
EHQHILWE\VXFKSURYLVLRQLQ7XUNH\´
,Q DFFRUGDQFH ZLWK $UWLFOH ³,Q 7XUNH\ WKH QDWLRQDOV RI WKH RWKHU &RQWUDFWLQJ 3RZHUV ZLOO KDYH WKH
ULJKW WR DFTXLUH WR SRVVHVV DQG WR GLVSRVH RI DOO NLQGV RI SURSHUW\ ERWK PRYDEOH DQG LPPRYDEOH
VXEMHFW WR FRPSOLDQFH ZLWK WKH ORFDO ODZV DQG UHJXODWLRQV WKH\ ZLOO LQ SDUWLFXODU EH DEOH WR GLVSRVH
WKHUHRI E\ VDOH H[FKDQJH JLIW WHVWDPHQWDU\ GLVSRVLWLRQ RU LQ DQ\ RWKHU ZD\ DQG WR WDNH SRVVHVVLRQ
$OO SRVVHVVLRQV RI *UHHN QDWLRQDOV LQ 7XUNH\ LQFOXGLQJ WKH RQHV IURP
SULYDWHSURSHUW\DQGWKHLUUHOHYDQWULJKWVLQNLQGRUDQ\RWKHUWUDQVIHUVWREULQJVXFK
UHVXOWVZLOOEHFHDVHG
E 3UHYLRXVO\ GHEORFNDJH RI UHYHQXHV IURP DP DVVHWV RI WKRVH SHUVRQV LQ
7XUNH\ ZLOO EH UHEORFNDGHG$VXPXSWR7/ZLOOEHH[HPSWHGPRQWKO\IURP
WKHWRWDOUHYHQXHVRIWKHODQGRZQHUVLQ7XUNH\WRFRYHUOLYLQJH[SHQVHVLQFDVHWKH\
GRQRWKDYHRWKHULQFRPHVRXUFHV
7KH $UWLFOHV RI WKH 'HFUHH ZLOO QRW EH DSSOLFDEOH IRU SHUVRQV FDUU\LQJ
*UHHNQDWLRQDOLW\EXWQRWRI*UHHNRULJLQ
E\ LQKHULWDQFH LQ DFFRUGDQFH ZLWK WKH ODZ RU XQGHU GLVSRVLWLRQV LQWHU YLYRV RU E\ ZLOO´ )RU 7XUNLVK
VHH 6HKD 0HUD\ /R]DQ %DUÕú .RQIHUDQVÕ 7XWDQDNODU%HOJHOHU 7DNÕP ,, &LOW ,, ,VWDQEXO <.<
<D\ÕQODUÕSS
&KDQJHV LQ QDWLRQDOLW\ RI *UHHN FLWL]HQV HIIHFWHG DIWHU WKH GDWH RI
GHFODUDWLRQRIWKH'HFUHHZLOOQRWEHWDNHQLQWRFRQVLGHUDWLRQ
7KH 'HFUHH ZDV DQQXOOHG GXULQJ 7 g]DO¶V 9LFH 3UHVLGHQF\ ³IRU H[WHQGLQJ
JRRGZLOO WRZDUGV WKH VROXWLRQ RI FRQIOLFW LVVXHV EHWZHHQ WKH WZR FRXQWULHV E\ WKH
GHFLVLRQ RI WKH FRXQFLO RI 0LQLVWHUV DQQRXQFHG LQ WKH 2IILFLDO *D]HWWH GDWHG
)HEUXDU\QXPEHUHG
0RUHRYHU ZLWK WKH &RXQFLO RI 0LQLVWHU¶V 'HFUHH GDWHG 0DUFK
QXPEHUHG DGYHUWLVHG LQ WKH 2IILFLDO *D]HWWH GDWH 0DUFK
QXPEHUHGGXULQJWKHYDOLGLW\RIWKHDQQXOOHG'HFUHHRIWKHVDYLQJVGXH
WR LQKHULWDQFH ZKLFK ZHUH QRW UHJLVWHUHG LQ WKH QDPH RI WKH LQKHULWRU ZHUH WR EH
UHJLVWHUHGLQWKHQDPHRIWKHLQKHULWRU
+RZHYHU GXH WR D QXPEHU RI OLPLWDWLRQV VWLOO EHLQJ DSSOLHG E\ WKH *UHHN
JRYHUQPHQWVRQ7XUNLVK0LQRULW\LQ*UHHFHWKHDSSURYDORIWKH*HQHUDO'LUHFWRUDWH
RI/DQG5HJLVWU\DQG&DGDVWUHLVUHTXLUHG´
8SRQWKHREOLWHUDWLRQRIWKHO'HFUHHLQZLWKDOOLWVFRQVHTXHQFHVWKH
/DZHQDEOLQJUHDOSHUVRQVDQGOHJDOSHUVRQVWRDFTXLUHUHDOHVWDWHVLQ7XUNH\FDPH
LQWR IRUFH LQ 7XUNH\ XSRQ LWV GHFODUDWLRQLQWKH2IILFLDO*D]HWWHGDWHG-XO\
QXPEHUHG7KLVQHZ/DZDPHQGVWKHWHUPVRI/DQG5HJLVWUDWLRQLQ$UWLFOH
LQWKH/DZSDVVHGRQ-XO\QXPEHUHGDOVRDPHQGLQJWKH$UWLFOHRI
WKH /DQG 5HJLVWUDWLRQ /DZ QXPEHUHG ,Q IDFW DFFRUGLQJ WR WKH GDWD JLYHQ LQ
7DEOH 9 XQWLO WKH GDWH -XO\ DPRQJ WKH IRUHLJQHUV UHDO SHUVRQV RZQLQJ
HVWDWHLQ7XUNH\*UHHNVUHWDLQDVVHWVFRYHULQJDWRWDORIP
( /HYHQW ùDKLQ ³9DWDQGDúOÕN +XNXNX YH <DEDQFÕODUÕQ 7DúÕQPD]PDO (GLQPHVL´
KWWSZZZPLOOLHPODNJRYWUNRQWNXULQWHUQHWBGHUJLXFXQFXBVD\L\DEDQFLODULQBPDOBHGLQLPLGRF
-XO\
7DEOH9
$VRI-XO\5($/(67$7($&48,6,7,212)*5((.5($/3(56216,1785.(<
/DQG5HDO /DQG53
$SDUW
1R5 1R 3URSHUW\ %XLOGLQJ5HVLGHQFH 7RWDO
3URYLQFH &RXQWU\&LWL]HQVKLS
P
(VWDWH3HUVRQ
1R P 1R P 1R P
$<',1 *UHHFH7XUNLVK*UHHN
%$/,.(6ø5 *UHHFH7XUNLVK
%856$ *UHHFH7XUNLVK*UHHN
('ø51( *UHHFH7XUNLVK*UHHN
(6.øù(+ø5 *UHHFH7XUNLVK
ø67$1%8/ *UHHFH7XUNLVK*UHHN
ø=0ø5 *UHHFH7XUNLVK*UHHN
.2&$(/ø *UHHFH7XUNLVK
0$1ø6$ *UHHFH7XUNLVK*UHHN
08ö/$ *UHHFH7XUNLVK
6$.$5<$ *UHHFH7XUNLVK
7(.ø5'$ö *UHHFH7XUNLVK*UHHN
<$/29$ *UHHFH7XUNLVK*UHHN
727$/ 7XUNLVK*UHHN
6RXUFH3UHSDUHGE\XVLQJVWDWLVWLFVRI7XUNLVK*HQHUDO'LUHFWRUDWHRI/DQG5HJLVWU\DQG&DGDVWUH
KWWSZZZWNJPJRYWUWDSXQHWDWNJPJRYWU\DEDQFLBLVOHU\DEDQFLODULOJHQHOL]LS
+RZHYHULIZHORRNLQWRWKHILJXUHRIUHDOHVWDWHVRQO\RIWKRVH
EHORQJWRSHRSOHRIUHDO*UHHNRULJLQ7KHUHVWEHORQJWR*UHHNFLWL]HQVRI
7XUNLVK RULJLQ ,W FDQ EH FRQFOXGHG WKDW D PRUH WROHUDQW UHJLPH LV DSSOLHG WR WKLV
JURXS0RUHRYHUZKHQSHUVRQVRIUHDO*UHHNRULJLQDWWHPSWWREX\UHDOHVWDWHWKHLU
DSSOLFDWLRQ LV VXEMHFW WR WKH DSSURYDO RI WKH &LUFXODU RI WKH *HQHUDO 'LUHFWRUDWH RI
/DQG5HJLVWU\DQG&DGDVWUHGDWHG0DUFKQXPEHUHG7
ZKLFKLVVWLOOLQIRUFH)XUWKHUPRUHWKH/DZUHJXODWLQJWKHSURFHGXUHVWREHIROORZHG
E\ IRUHLJQHUV UHDO SHUVRQV RU OHJDO SHUVRQV WR RZQ UHDO HVWDWHV LQ 7XUNH\
DGYHUWLVHGLQWKH2IILFLDO*D]HWWHGDWHG-XO\QXPEHUHGSDVVHGRQ
-XO\ LV EHLQJ DSSOLHG WR *UHHN RULJLQ UHDO SHUVRQV DQG OHJDO SHUVRQV RQ D
UHFLSURFDOEDVLV
$V IRU FRPPRQ LQYHVWPHQWV LQ -XQH DQ DJUHHPHQW ZDV FRQFOXGHG
EHWZHHQ 7XUNH\ DQG *UHHFH IRU WKH LPSOHPHQWDWLRQ RI QDWXUDO JDV QHWZRUN
IRUHVHHLQJFRRSHUDWLRQLQWKLVUHVSHFW%RWK&RXQWULHVDJUHHGWRZRUNFRRSHUDWLYHO\
RQWKH(8VXSSRUWHG,QWHUVWDWH2LODQG*DV7UDQVSRUWWR(XURSH,12*$7(SURMHFW
,Q WKLV FRQQHFWLRQ D SURWRFRO ZDV VLJQHG EHWZHHQ WKH QDWLRQDO JDV FRPSDQLHV RI
7XUNH\ DQG *UHHFH %27$6 DQG '(3$ RQ -DQXDU\ 7KH 3URWRFRO
HQYLVDJHV FROOHFWLYH DWWHPSWV IRU WKH UHDOL]DWLRQ RI QDWXUDO JDV SURMHFWV LQ 6RXWK
(DVWHUQ (XURSH $ FRQVRUWLXP ZDV IRUPHG DPRQJ 7XUNH\ *UHHFH DQG 86$
FRPSDQLHV *$0$ &RSHORX]RV DQG ([[RQ 0RELO IRU SURYLGLQJ HQHUJ\ ,W ZDV
$V IDU DV WKH LQIRUPDWLRQ UHFHLYHG IURP WKH *HQHUDO 'LUHFWRUDWH RI /DQG 5HJLVWU\ DQG &DGDVWUH RI
7XUNH\ ³7KH &RXQFLO RI 0LQLVWHUV H[SUHVVHG ZKDW VKRXOG EH XQGHUVWRRG IURP WKH UHFLSURFLW\ SULQFLSOH
LQ LWV GHFLVLRQ GDWHG 0D\ DQG QXPEHUHG $FFRUGLQJ WR WKLV GHFLVLRQ LQ DGGLWLRQ WR
OHJLVODWLYHUHJXODWLRQRIUHFLSURFLW\SULQFLSOHSUDFWLFDODSSOLFDELOLW\RILWLVDOVRUHTXLUHGIRULWVH[LVWHQFH
VLWXDWLRQ UHVWULFWLRQV HQFRXQWHUHG LQ D IRUHLJQ FRXQWU\ E\ WKH FLWL]HQV RI WKH 5HSXEOLF RI 7XUNH\ LQ
FDVHRIWKHLUDSSOLFDWLRQDUHZDQWHGWREHWDNHQDVDEDVLVLQLPSOHPHQWDWLRQRIUHFLSURFLW\7KHUHIRUH
IRUWKHH[LVWHQFHRIUHFLSURFLW\EHWZHHQRXUFRXQWU\DQGDIRUHLJQFRXQWU\DERXWUHDOHVWDWHDFTXLVLWLRQ
UHFLSURFLW\PXVWEHERWKLQODZDQGLQSUDFWLFH$FFRUGLQJWRWKLVSULQFLSOHIRUUHDOHVWDWHDFTXLVLWLRQRI
D IRUHLJQ FRXQWU\
V FLWL]HQ RU WUDGH FRPSDQ\ LQ RXU FRXQWU\ WKH FLWL]HQV DQG WUDGH FRPSDQLHV RI WKH
5HSXEOLF RI 7XUNH\ VKRXOG DOVR KDYH WKH ULJKW WR DFTXLUH UHDO HVWDWH LQ WKLV IRUHLJQ FRXQWU\ DQG WKLV
ULJKWPXVWEHDFFHSWHGE\ODZVDQGPXVWEHSUDFWLFDOO\DSSOLFDEOH´
7KH GHOLPLWDWLRQV RI *UHHFH DSSOLHG WR SHRSOH RI 7XUNLVK RULJLQ XQGHU 7XUNLVK QDWLRQDOLW\ DQG WR WKH
7XUNLVKPLQRULW\WKHUHIRUFHG7XUNH\WRDFWLQWKHVDPHPDQQHUWRZDUGVFRXQWHUJURXSVLQ7XUNH\1R
GRXEWWKLVVLWXDWLRQFRXOGFUHDWHQHJDWLYHLPSDFWRQWKHHIIRUWVIRUFRRSHUDWLRQDQGWKHUHFRYHU\RIWKH
UHODWLRQV EHWZHHQ 7XUNH\ DQG *UHHFH DQG QHJDWLYHO\ LQIOXHQFH WKH SURJUHVV RI UHODWLRQV EDVHG RQ
PXWXDO FRQILGHQFH ,Q IDFW ZLWKLQ WKH DUJXPHQWV RQ *UHHN 2UWKRGR[ 3DWULDUFKDWH LQ ,VWDQEXO WKH
7XUNLVK PHGLD EURXJKW XS FRQFHUQV DERXW *UHHN SHRSOH EX\LQJ UHDO HVWDWH PRVWO\ LQ WKH ³)HQHU´
UHJLRQZKHUH2UWKRGR[3DWULDUFKDWHLVORFDWHG
5HJDUGLQJWKHUHFLSURFLW\SULQFLSOHVHH
KWWSZZZWNJPJRYWUWDSXQHWDWNJPJRYWUWHVNLODW\DSLVLWHVNLODWVHPDVL\DEDQFLLVGEVNKWP0DUFK
³&RRSHUDWLRQ %HWZHHQ 7KH *UHHN 1DWXUDO *DV &RPSDQ\ $QG 7KH 7XUNLVK %27$6´
KWWSZZZSKDQWLVJUQHZVKWPO0DUFK
GHFODUHGWKDWWKLV&RQVRUWLXPZDVJRLQJWREHUHVSRQVLEOHIRUEXLOGLQJXSDQHOHFWULF
PLOO LQ *UHHFH ZLWK D FDSDFLW\ RI 0: WR VXSSO\ *UHHFH¶V HQHUJ\
UHTXLUHPHQW7KHUHVWZRXOGEHH[SRUWHGWR7XUNH\$VIRUWKHSURJUHVVLQEDQNLQJ
VHFWRUWKH1DWLRQDO%DQNRI*UHHFHLVH[SHFWHGWRRSHQDEUDQFKLQ7XUNH\WRVXSSO\
ORDQVIRU6PDOODQG0HGLXP6L]H(QWHUSULVHV606
7KH PDMRU LPSHGLPHQW IDFHG LQ WKH FRXUVH RI HQKDQFLQJ HFRQRPLF UHODWLRQV
EHWZHHQ 7XUNH\ DQG *UHHFH LV WKH GRXEOH WD[DWLRQ SUREOHP FRQIURQWHG E\ ERWK
7XUNLVK DQG *UHHN EXVLQHVVPHQ ZKR ZLVK WR LQYHVW LQ ERWK &RXQWULHV 3DUWLHV
PXWXDOO\ ZLOOLQJ WR LQYHVW EHOLHYH WKDW DOO WKHVH SUREOHPV FDQ EH VRUWHG RXW E\
FRPPRQDUUDQJHPHQWVWREHPDGHRQVXFKLVVXHV
7KH PDWWHU ZDV EURXJKW XS GXULQJ *UHHN )RUHLJQ 0LQLVWHU * 3DSDQGUHRX¶V
YLVLW WR 7XUNH\ LQ $SULO DQG LW ZDV GHFODUHG WKDW QHFHVVDU\ VWHSV ZHUH EHLQJ
WDNHQ,QIDFWVXFKHIIRUWVOHGWRWKHFRQFOXVLRQRIWKH³$JUHHPHQWIRUWKH$YRLGDQFH
RI 'RXEOH 7D[DWLRQ ZLWK 5HVSHFW WR 7D[HV RQ ,QFRPH´ RQ 'HFHPEHU LQ
$QNDUD DQG FDPH LQWR IRUFH XSRQ LWV DGYHUWLVHPHQW LQ WKH 2IILFLDO *D]HWWH GDWHG
0DUFKQXPEHUHG
,QWKHPHDQWLPHLWZDVVWUHVVHGWKDWWKHSURJUHVVLQHFRQRPLFUHODWLRQVZRXOG
FRQWULEXWH WR WKH RYHUFRPH WKH ILQDQFLDO FULVLV LQ 7XUNH\ DQG DFFRUGLQJO\ PXWXDO
UHGXFWLRQRIPLOLWDU\H[SHQVHVZRXOGEULQJUHOLHIWRWKHLUQDWLRQDOHFRQRPLHVDQGDOVR
ZRXOGPLQLPL]HWKHSHUFHSWLRQVRIDUPDPHQWFRPSHWLWLRQ,QWKHVDPHFRQWH[WWKH
6HHKWWSZZZHLDGRHJRYHPHXFDEVJUHHFHKWP0DUFK
/H\OD7DYúDQR÷OX³(JH¶QLQøNL<DNDVÕ%LUOHúL\RU´&XPKXUL\HW$SULOS
7KH $JUHHPHQW ZLOO FRPH LQWR IRUFH RQ -DQXDU\ )RU WKH IXOO WH[W RI WKH $JUHHPHQW VHH
³$JUHHPHQW %HWZHHQ WKH 5HSXEOLF RI 7XUNH\ DQG +HOOHQLF 5HSXEOLF IRU WKH $YRLGDQFH RI 'RXEOH
7D[DWLRQ ZLWK 5HVSHFW WR 7D[HV RQ ,QFRPH 7UNL\H &XPKXUL\HWL LOH <XQDQLVWDQ &XPKXUL\HWL $UDVÕQGD
*HOLU h]HULQGHQ $OÕQDQ 9HUJLOHUGH dLIWH 9HUJLOHQGLUPH\L gQOHPH $QODúPDVÕ´ 36 7KHUH LV
DPHQGPHQW RQ WKH $JUHHPHQW DGYHUWLVHG LQ WKH 2IILFLDO *D]HWWH GDWHG 0DUFK QXPEHUHG
'XULQJQHJRWLDWLRQVZLWK,0)WKHIDFWWKDW7XUNH\PLJKWGHOLPLWLWVPLOLWDU\H[SHQVHVZDVPHQWLRQHG
DQG *UHHFH KDYLQJ KHDUG RI VXFK D SODQ FRQVLGHUHG WR GRWKHVDPH7KLVLQIRUPDWLRQKDGOHDNHGLQWR
WKH PHGLD DQG JDYH ULVH WR UHDFWLRQ LQ 7XUNH\ $FFRUGLQJ WR WKH OHDNHG LQIRUPDWLRQ 7XUNH\ KDG
DFFHSWHG WR ORZHU WKH VKDUH RI LWV PLOLWDU\ H[SHQVHV IRU WKH VDNH RI LQFUHDVH LQ LWV *13 LQ IURP
*UHHN)RUHLJQ0LQLVWHU*3DSDQGUHRXVDLG³:HEHOLHYHWKDWDGHSHQGDEOHVWDELOLW\
KDV EHHQ UHDFKHG E\ QRZ :KHQ ZH ORRN DKHDG ZH NHHS DVNLQJ LV WKLV PXFK
PLOLWDU\ EXGJHW QHFHVVDU\ RU QRW :H FRXOG GLYHUW WKLV VXP IRU WKH ZHOIDUH RI RXU
VRFLHWLHV %RWK FRXQWULHV VKRXOG FDUHIXOO\ ZDWFK ZKHUH WKHLU LQWHUHVWV PHHW ,I ZH
NHHS RQ TXDUUHOOLQJ WKH ZRUOG ZLOO QRW WDNH XV VHULRXVO\ DQ\PRUH ZH ZLOO JHW PRUH
DQGPRUHPDUJLQDODQGZLOOORVHLQWKHZRUOGRIFRPSHWLWLRQ:HVKRXOGUHGHWHUPLQH
RXU SULRULWLHV DQG JHW LQWR FRRSHUDWLRQ UDWKHU WKDQ FUHDWLQJ IHDU WKURXJK PLOLWDU\
H[SHQGLWXUHV´
'XULQJ WKH 7XUNLVK ±*UHHN %XVLQHVV &RXQFLO PHHWLQJ LQ ,VWDQEXO RQ
$SULOHFRQRPLFFRRSHUDWLRQDQGFRPPRQLQYHVWPHQWSURVSHFWVZHUHIRFXVHG
RQ 'XULQJ WKH 0HHWLQJ LW ZDV VWUHVVHG WKDW EHIRUH WKH 2O\PSLF JDPHV LQ
$WKHQVFRPPRQLQYHVWPHQWSURMHFWVRQWKHILHOGRIWRXULVPKDGWREHSURPRWHG
WR³7UNL\H¶\OHøOJLOL,0)%HOJHVL$WLQD¶\D6Õ]GÕ´+UUL\HW$SULOS³6LPLWLV,0)
.RúXOODUÕQÕg÷UHQGL´&XPKXUL\HW$SULOS
%HVLGHVEHIRUHWKHPHHWLQJZLWKø&HPRQ$SULO3DSDQGUHRXWROGWKHSUHVVWKDW7XUNH\DQG
*UHHFHVKRXOGPXWXDOO\GHOLPLWWKHLUPLOLWDU\H[SHQVHVDQGVXFKVXJJHVWLRQVZHUHPHWZLWKSUHFDXWLRQ
LQ 7XUNH\ ,Q WKLV FRQWH[W *UHHFH GHFODUHG WKH\ KDG VXVSHQGHG WKH ELOOLRQ (XURILJKWHU SURMHFW
³$QNDUD0HVDMÕ$OGÕ´&XPKXUL\HW$SULOSS6DPL.RKHQ³.UL])ÕUVDW2ODELOLU«´0LOOL\HW
$SULOSg]JHQ$FDU³6LODKODQPD$VNÕ\D$OÕQÕ\RU´&XPKXUL\HW$SULOS
6HOLP$OSDVODQ³%DUÕú0HVDMÕ´&XPKXUL\HW$SULOSS
*UHHN &XOWXUDO $IIDLUV 0LQLVWHU LQ KLV RSHQLQJ VSHHFK DW WKH 7XUNLVK*UHHN %XVLQHVV &RXQFLO
0HHWLQJPDGHFRPPHQWRQWKHUHFHQWSURJUHVVLQ7XUNLVKHFRQRP\DQGVWUHVVHGWKDWWKHFRQMXQFWXUH
FRYHU RXU H[SHQVHV IRU WKH 2O\PSLF JDPHV %HIRUH WKH *DPHV LQ $WKHQV :RUOG &XOWXUDO
2O\PSLFVZLOOEHKHOGDQGZHFRQVLGHUERWKDVDJLDQW(XURSH3URMHFWDQGZHZLVK7XUNH\DQG7XUNLVK
HFRQRP\WRWDNHSDUWLQWKH3URMHFW´
$OVR WKH 7XUNLVK*UHHN %XVLQHVV &RXQFLO &R3UHVLGHQW 3 .RXWVLNRV LQ KLV VSHHFK VWUHVVHG RQ WKH
YLVLEOH SURJUHVV LQ 7XUNLVK HFRQRP\ DQG VDLG ³/DVW \HDU 7XUNH\ FDPH VHFRQG LQ WKH OLVW RI *UHHFH¶V
UG WK
H[SRUW PDUNHWV ,Q ZH H[SHFW 7XUNH\ WR EH LQ WKH RU WKH URZ 7KLV UHVXOW LV LPSRUWDQW IRU
*UHHFH :H KRSH 7XUNLVK HFRQRP\ UHJDLQ VWDELOLW\ VRRQ´ ³9HQL]HORV $YUXSDOÕ %LU 7UNL\H øVWL\RUX]´
-XQH
5HJLRQDO&RRSHUDWLRQ
,W ZDV QRWLFHG WKDW D QHZ HUD KDG VWDUWHG LQ WKH FRXUVH RI 7XUNLVK*UHHN
UHODWLRQVVRRQDIWHUWKH+HOVLQNL6XPPLWZKHUH7XUNH\ZDVDFFHSWHGDVDFDQGLGDWH
PHPEHU WR WKH (8 ,Q WKH FRXUVH RI WKH GLDORJXH SURFHVV ZLWK 7XUNH\ SDUWLFXODUO\
GXULQJWKH+HOVLQNL6XPPLWLWZDVVWUHVVHGWKDWLWZRXOGEHWRWKHLQWHUHVWRI*UHHFH
WR JHWFORVHUZLWK7XUNH\DQGILQDQFLDOLPSHGLPHQWVVKRXOGEHSDUWLDOO\UHPRYHGWR
HQDEOHWKLVGHYHORSPHQW
+DYLQJ PHW VLPLODU GLIILFXOWLHV RQ WKH URDG WR LWV (8 LQWHJUDWLRQ SURFHVV
*UHHFH SURSRVHG FRRSHUDWLRQ ZLWK 7XUNH\ WR RYHUFRPH WKH REVWDFOHV WKH\ ZRXOG
OLNHO\PHHW2Q)HEUXDU\7XUNLVK*UHHN(8&RPPLWWHHKHOGDPHHWLQJLQ
OLQH ZLWK WKH UDSSURFKHPHQW LQ $QNDUD ZLWK WKH SDUWLFLSDWLRQ RI H[SHUWV IURP ERWK
VLGHV 7KH\ GLVFXVVHG ZD\V RI FRRSHUDWLRQ RQ (8 LVVXHV $IWHU WKLV PHHWLQJ LW ZDV
IRFXVHGRQPHDQVRIFRRSHUDWLRQJURXSVWDUJHWHGDQGWUDLQLQJVHPLQDUVIRUWKHVH
JURXSV,QWKHVFRSHRIWKH'HFODUDWLRQDQQRXQFHGLQ$QNDUDRQ$SULOLWZDV
PHQWLRQHG DERXW WKH SURMHFWV LQ OLQH ZLWK WKH (8 FRRSHUDWLRQ DQG WKH HIILFLHQF\ RI
WKHVH SURMHFWV WR EROVWHU VROLGDULW\ DQG FRRSHUDWLRQ EHWZHHQ 7XUNH\ DQG *UHHFH ,W
ZDV HPSKDVL]HG WKDW WUDLQLQJ VHPLQDUV ZRXOG KHOS WR HQKDQFH XQGHUVWDQGLQJ
EHWZHHQ7XUNLVKDQG*UHHNRIILFLDOV
)RU LQVWDQFH *UHHFH XVHG LWV YHWR DQG WULHG WR VWRS WKH UHOHDVH RI WKH IROORZLQJ VXPV LQ IDYRU RI
7XUNH\
WK
'XULQJPLOOLRQ(XURGXHZLWKWKH )LQDQFH3URWRFRO
'XULQJWKHSODQQHGORDQRIPLOOLRQ(XUR(&8IURPWKH(8%XGJHW
$OVRLQWKHVDPHWHUPWKHUHOHDVHRIWKHORDQE\WKH(XURSHDQ,QYHVWPHQW%DQNWRWDOLQJWRPLOOLRQ
(XUR(&8 )RU WKH ILQDQFLDO FRRSHUDWLRQ EHWZHHQ 7XUNH\ DQG WKH (8 LQ SHULRGLF RUGHU 6HH ³7XUNH\
$SULO
$V VWDWHG LQ WKH -RLQW 'HFODUDWLRQ WZR VHPLQDUV ZHUH JLYHQ WR WKH RIILFLDOV RI WKH 0LQLVWU\ RI
)LQDQFHDQG&XVWRPV8QGHU6HFUHWDULDWILUVWLQ-XO\LQ$WKHQVDQGWKHVHFRQGLQ,VWDQEXORQ
-DQXDU\)HEUXDU\2Q2FWREHUDQRWKHUVHPLQDUZDVKHOGRQMXGLFLDOFRRSHUDWLRQDQG
EDVLF (8 /DZ ZDV GLVFXVVHG UHODWLRQV EHWZHHQ WKH (8 /DZ 6\VWHP DQG QDWLRQDOOHJDO DSSOLFDWLRQV
DQG UHJXODWLRQV ZHUH WULHG WR EH FOHDUHG ,Q WKH VHPLQDU KHOG LQ &UHWH EHWZHHQ 2FWREHU DQG
1RYHPEHUDJULFXOWXUDOLQIRUPDWLRQZDVJLYHQWRWKHRIILFLDOVIURP7XUNLVK0LQLVWU\RI$JULFXOWXUH
0LQLVWU\ RI 7UDGH DQG ,QGXVWU\ DQG )RUHLJQ 7UDGH 8QGHU 6HFUHWDULDW 2Q 0DUFK DQRWKHU
$QRWKHUFRRSHUDWLRQLQLWLDWLYHIRU(8FRRSHUDWLRQLVWKHGHYHORSPHQWRIERUGHU
UHJLRQV 6LQFH WKH ERUGHU UHJLRQ EHWZHHQ 7XUNH\ DQG *UHHFH DOVR FRQVWLWXWHV WKH
7XUNH\(8ERUGHULWLVSRVVLEOHIRU7XUNH\DQG*UHHFHWRPDNHFROOHFWLYHDWWHPSWWR
PDLQWDLQH WKH (8 VXSSRUW DQG IXQGV LQ WKLV UHVSHFW $V SRLQWHG RXW E\ .XUEHOD
ZLWKLQWKHIUDPHRI,17(55(*,,,IRUWKHLPSURYHPHQWRIERUGHUUHJLRQVLQFOXGLQJ
VRPHPDULQHERUGHUVDQGWKHQHDUE\UHJLRQVDURXQGWKHERUGHUVRIPHPEHUVWDWHV
FRRSHUDWLRQ FDQEHDOVRLQTXHVWLRQEHWZHHQ7XUNH\DQG*UHHFH7KHUHIRUH ³7RWDO
DLG WR EH IRUZDUGHG WR *UHHFH ZLOO EH PLOOLRQ (852 DQG XS WR RI WKLV
DPRXQW FDQ EH XVHG XQGHU WKLV FDWHJRU\ *UHHFH¶V QDWLRQDO FRQWULEXWLRQ WR WKLV
DPRXQWPLOOLRQ(XURZLOOEHDOVRDGGHGWRWKHDERYHWRWDOPDNLQJDWRWDORI
PLOOLRQ (XUR DQG EHWZHHQ RI WKLV WRWDO ZLOO EH VSDUHG IRU FRRSHUDWLRQ ZLWK
7XUNH\ WRWDOLQJ WR PLOOLRQ (XUR 7KH QHDUE\ UHJLRQV WR EH LQFOXGHG LQ
7XUNLVK*UHHNFRRSHUDWLRQDUH(DVWHUQ0DFHGRQLD7KUDFH1RUWKHUQDQG6RXWKHUQ
$HJHDQ,QWKHVFRSHRIWKHFRRSHUDWLRQSURJUDPLVVXHVOLNHHQYLURQPHQWSURWHFWLRQ
FRRSHUDWLRQDPRQJVPDOODQGDYHUDJHVL]HHQWHUSULVHVFRRSHUDWLRQRQWRXULVPDQG
FXOWXUDO DIIDLUV DQG FRRSHUDWLYH SURJUDPV DPRQJ ORFDO DGPLQLVWUDWLRQV ZLOO EH WDNHQ
XS´
6LPLODU HIIRUWV DUH DOVR SXUVXHG XQGHU WKH IUDPHZRUN RI 6RXWK (XURSHDQ
&RRSHUDWLRQ,QLWLDWLYH6(&,6(&,LVDLPLQJWRVXVWDLQHFRQRPLFFRRSHUDWLRQDPRQJ
%DONDQFRXQWULHVSUHFRQVLGHULQJWKHUHODWLRQVRIWKHPHPEHUFRXQWULHVZLWKWKH(8
DQGSDUWLFXODUO\WU\LQJWRKDUPRQL]HWKHFRRSHUDWLRQHIIRUWVRQHQHUJ\DQGWUDQVSRUW
VHFWRUV HQYLURQPHQW DQG RUJDQL]HG FULPH LVVXHV VWRFN H[FKDQJH WUDQVDFWLRQV
RQH ZDV KHOG LQ $WKHQV DQG H[SODQDWRU\ LQIRUPDWLRQ ZDV JLYHQ WR WKH 7XUNLVK RIILFLDOV IURP WKH
*HQHUDO 'LUHFWRUDWH RI 6HFXULW\ DQG *HQHUDO &RPPDQG RI *HQGDUPHULH RQ WKH ³SROLFH FRRSHUDWLRQ
LVVXHV´ RI 6KHQJHQ (85232/ DQG 6LUHQQH ,W ZDV DOVR VWUHVVHG WKDW VXFK FRRSHUDWLYH DQG
LQIRUPDWRU\ VHPLQDUV ZRXOG EH FRQWLQXHG IRU 7XUNH\¶V LQWHJUDWLRQ SURFHVV LQWR WKH (8 DQG *UHHFH
ZRXOG JR RQ VKDULQJ LWV H[SHULHQFH ZLWK 7XUNH\ 2Q WKLV WRSLF VHH ³-RLQW 'HFODUDWLRQ RQ 7XUNH\
KWWSZZZPIDJRYWUJUXSEEDEDD$SULOGHIDXOWKWPEP$SULO
)RU WKH HFRQRPLF SROLWLFDO DQG PLOLWDU\ UROHV ZKLFK FDQ EH FROOHFWLYHO\ FDUULHG RXW E\ 7XUNH\ DQG
*UHHFH VHH )XDW $NVX ³&RQILGHQFH 6HFXULW\ DQG &RQIOLFW 5HVROXWLRQ ,QLWLDWLYHV LQ WKH %DONDQV´
7XUNLVK5HYLHZRI%DONDQ6WXGLHV$QQXDOSS
0.XUEHOD³$%h\HOL÷LøoLQ'HQH\LP7UDQVIHUL´&RRSHUDWLRQ1XPEHU)HEUXDU\S
FRRSHUDWLRQEH\RQGERUGHUVDQGFRUUHODWLRQRIQDWLRQDOUHJXODWLRQVIRUWKHUHDOL]DWLRQ
RIVWUXFWXUDOSURMHFWV7XUNH\DQG*UHHFHGXHWRWKHLUORFDWLRQLQWKHLUUHODWLRQVZLWK
WKH(8DQGWKH:HVWHUQV\VWHPDUHJXLGLQJFRXQWULHVLQWKHERG\RI6(&,
$QRWKHU ILHOG RI FRRSHUDWLRQ ZKLFK WKH WZR FDQ IRFXV RQ LV WKH %ODFN 6HD
(FRQRPLF &RRSHUDWLRQ %6(& %6(& ZDV IRXQGHG WR IRVWHU HFRQRPLF SROLWLFDO
FRPPHUFLDO DQG FXOWXUDO FRRSHUDWLRQ DPRQJ %ODFN 6HD FRDVWDO VWDWHV DV ZHOO DV
%ODFN 6HD UHJLRQDO FRXQWULHV ZKLFK KDYH FORVH WLHV ZLWK HDFK RWKHU %6(& LV D
XQLTXH RUJDQL]DWLRQ IRU 7XUNH\ DQG *UHHFH ZKHUH WKH\ QHHG WR HQKDQFH WKHLU
FRRSHUDWLRQ 0RVW RI WKH HFRQRPLF FRRSHUDWLRQ DPRQJ WKH :HVW &DXFDVXV DQG
&HQWUDO$VLDLVPDGHWKURXJKWKH%ODFN6HD0RUHRYHUWKHHFRQRPLFDVVHWVRIWKHVH
UHJLRQV KDYH WR EH FDUULHG WR WKH LQWHUQDWLRQDO PDUNHWV WKURXJK %ODFN 6HD +HUH
7XUNH\¶V DQG *UHHFH¶V VLJQLILFDQFH FRPHV WR IRUH FRQVLGHULQJ WKHLU ORFDWLRQ DQG
VWUDWHJLF LPSRUWDQFH ZKLFK QHFHVVLWDWH WKHLU VWULFW FRRSHUDWLRQ +RZHYHU WKH VDPH
FRQMXQFWXUH DOVR FUHDWHV D VRUW RI ULYDOU\ EHWZHHQ 7XUNH\ DQG *UHHFH WRZDUGV
(XURSH86$DQG5XVVLDZKLFKJLYHVULVHWRFODVKRILQWHUHVWVEHWZHHQWKHWZRIURP
WLPHWRWLPH3DUWLFXODUO\WKHDUJXPHQWRQWKHWUDQVSRUWRIUHJLRQDOVRXUFHVPDLQO\RLO
DQG QDWXUDO JDV WR WKH ZRUOG PDUNHWV LV LPSRUWDQW LQ WKLV UHVSHFW 7KH DOWHUQDWLYH
WUDQVSRUWURXWHVRIUHJLRQDORLOZLWKSLSHOLQHVSDVVLQJWKURXJK*UHHFHDQG%XOJDULD
RUWKURXJKWKH7XUNLVK6WUDLWVWRWKHSRUWVLQWKH0HGLWHUUDQHDQIURPWKH%DNX7LIOLV
&H\KDQSLSHOLQHDOODWWUDFWWKHDWWHQWLRQRIERWKQDWLRQDODQGLQWHUQDWLRQDODFWRUVDQG
HYHQWXDOO\ IRUFH WKHP WR EH HIILFLHQWO\ DFWLYH LQ WKH 5HJLRQ )URP WKLV SRLQW RI YLHZ
DORQJZLWK7XUNH\¶VHFRQRPLFLQWHUHVWVLWVVHQVLWLYLW\LVDOVRLQTXHVWLRQ3DUWLFXODUO\
WKHHQYLURQPHQWDOGLPHQVLRQRIRLOWUDQVSRUWUHTXLUHVWKHFRRSHUDWLRQRI7XUNH\DQG
*UHHFHDPRQJRWKHUFRXQWULHVRIWKH5HJLRQ
)RU DQ DVVHVVPHQW RQ WKH FRRSHUDWLRQ HIIRUWV DPRQJ %DONDQ FRXQWULHV VHH )XDW $NVX ³6ÕQÕU
%|OJHOHULQLQ .DONÕQPDVÕQD <|QHOLN 6ÕQÕU gWHVL 6WDUDWHMLOHU YH %DONDQODUGD (QWHJUDV\RQ &DEDODUÕ´
øNWLVDWøúOHWPHYH)LQDQV1RYHPEHU1XPEHUSS
,Q IDFW DPRQJ WKH FRDVWDO VWDWHV RI WKH %ODFN 6HD D UHJLRQDO DWWHPSW ZDV FRQVLGHUHG RQ LVVXHV
IRU VHDUFK DQG UHVFXH LQ WKH VHD KXPDQLWDULDQ DLG PHDVXUHV DJDLQVW PLQHV DQG SURWHFWLRQ RI
HQYLURQPHQW DQG %/$&.6($)25 %ODFN 6HD 1DYDO &RRSHUDWLRQ 7DVN )RUFH ZDV IRXQGHG LQ WKH
IUDPHZRUN RI %6(& 7KH DJUHHPHQW ZDV VLJQHG E\ 7XUNH\ %XOJDULD 5RPDQLD DQG *HRUJLD LQ
,VWDQEXOLQ$SULO6HH³.DUDGHQL]øoLQøúELUOL÷L´&XPKXUL\HW$SULOS
)XUWKHUPRUH RQ )HEUXDU\ LQ 7KHVVDORQLFD 7XUNH\ DQG *UHHFH
FRQFOXGHG WKH ³$JUHHPHQW %HWZHHQ WKH 5HSXEOLF RI 7XUNH\ DQG +HOOHQLF 5HSXEOLF
&RQFHUQLQJWKH5HDOL]DWLRQRIWKH7XUNH\*UHHFH*DV,QWHUFRQQHFWRUDQGWKH6XSSO\
RI1DWXUDO*DVIURPWKH5HSXEOLFRI7XUNH\WRWKH+HOOHQLF5HSXEOLF´7KXVO\7XUNH\
DQG*UHHFHEHFDPHWRWUDQVLWFRXQWULHVIRUWKHWUDQVSRUWRIQDWXUDOJDVWR(XURSHDQG
WKH%DONDQV
)RU WKH $JUHHPHQW LQ TXHVWLRQ VHH ³$JUHHPHQW %HWZHHQ WKH 5HSXEOLF RI 7XUNH\ DQG +HOOHQLF
5HSXEOLF &RQFHUQLQJ WKH 5HDOL]DWLRQ RI WKH 7XUNH\*UHHFH *DV ,QWHUFRQQHFWRU DQG WKH 6XSSO\ RI
1DWXUDO *DV IURP WKH 5HSXEOLF RI 7XUNH\ WR WKH +HOOHQLF 5HSXEOLF 7UNL\H &XPKXUL\HWL LOH <XQDQLVWDQ
KWWSUHJDEDVEDNDQOLNJRYWU(VNLOHUKWP
&21&/86,21
,Q FRQWUDVW ZLWK WKH DSSUHKHQVLRQ WKDW SROLWLFDO GLVSXWHV ZRXOG KDUPHG WKH
ELODWHUDO DQG PXOWLODWHUDO HFRQRPLF UHODWLRQV DQG HIIRUWV IRU FRRSHUDWLRQ EHWZHHQ
7XUNH\DQG*UHHFHWKLVVWXG\FRYHULQJWKHSHULRGEHWZHHQKDVSURYHG
WKDWDSDUWIURPWKHUHODWLRQVRIWKLVW\SHVZHUHQRWPXFKHIIHFWHGE\SROLWLFDO
WHQVLRQV 6HULRXV SROLWLFDO WHQVLRQV KDYH KDUPHG WUDGH UHODWLRQV WR VRPH H[WHQW EXW
KDYHQRWIXOO\EORFNWKHWUDGHIORZ
&RQVHTXHQWO\ GXULQJ WKLV \HDUV WLPH LQWHUYDO WKRXJK VHULRXV WHQVLRQV
FDPHLQWKHFRXUVHRISROLWLFDOUHODWLRQVDQGLQVRPHFDVHVWKHWZRFRXQWULHVFDPHWR
WKH EULQN RI ZDU IRUHLJQ WUDGH ZDV QRW GLUHFWO\ HIIHFWHG E\ WKH GLVSXWHV 7KLV LV
EHFDXVHLQERWKFRXQWULHV¶WUDGHILJXUHVWKHUDWHRIWKHLUPXWXDOWUDGHGLGQRWH[FHHG
7KHUHIRUHVLQFHWKHLUPXWXDOFRPPLWPHQWVZHUHIHZWUDGHUHODWLRQVGLGQRWWXUQ
LQWRDSUHVVXUL]LQJIDFWRURYHUJHQHUDOUHODWLRQV0RUHRYHUSROLWLFDOFRQFHUQVPD\EH
FRQVLGHUHGWRKDYHLPSHGHGWKHDWWHPSWVIRUWKHLPSURYHPHQWRIHFRQRPLFUHODWLRQV
WRR)RULQVWDQFHGXULQJV3ULPH0LQLVWHU7g]DOEURXJKWXSVXJJHVWLRQVIRUWKH
GHYHORSPHQW RI HFRQRPLF DQG WUDGH UHODWLRQV EHWZHHQ WKH *UHHN LVODQGV QHDU WKH
7XUNLVK FRDVW DQG 7XUNH\ +RZHYHU KLV DWWHPSWV ZHUH WXUQHG GRZQ E\ $
3DSDQGUHRXZKRIHDUHGWKDWVXFKUHODWLRQVZRXOGFUHDWHDVRUWRIGHSHQGHQFH2Q
WKHRWKHUKDQGZLWKWKHYROXPHRIPXWXDOWUDGHEHLQJORZDQGDQDEXQGDQFHRIRWKHU
DOWHUQDWLYHV7XUNH\DQG*UHHFHZHUHQRWLQGLVSHQVDEOHWRHDFKRWKHULQDQ\UHVSHFW
6LQFH WKH\ ZHUH QHYHU KHOG EDFN ZLWK FRQFHUQV DERXW WUDGH DQG FRPPHUFLDO
FRPPLWPHQWVLWZDVHDVLHUIRUERWKWRWDNHSROLWLFDOPHDVXUHVDQGDFWLYDWHWKHP
:KHQHYHU WKHUH LV D ULVN RI ZDU WKH VLGH KROGLQJ VWURQJHU FDUGV LQ WKH
HFRQRPLFDQGSROLWLFDOVHQVHXVHVWKDWOHYHUDJHDVPHDQVRISUHVVXUHLQEDUJDLQLQJ
ZLWKWKHRWKHU7KHVDPHZDVREVHUYHGLQ7XUNLVK*UHHNUHODWLRQV*UHHFHEHLQJD
PHPEHURIWKH(8DQG7XUNH\RQO\DFDQGLGDWHVWDWXVFUHDWHGVXFKDWUXPSFDUGIRU
*UHHFH DJDLQVW 7XUNH\ *UHHFH XVHG WKHVH FDUGV DJDLQVW 7XUNH\ DQG KLQGHUHG WKH
HFRQRPLF DLGV WR EH IRUZDUGHG WR 7XUNH\ E\ WKH (8 DW D WLPH ZKHQ 7XUNH\ GLUHO\
QHHGHG IRUHLJQ DLG IRU LWV HFRQRPLF GHYHORSPHQW +RZHYHU ZKHQ 7XUNH\ HQWHUHG
LQWR WKH &XVWRPV 8QLRQ ZLWK WKH (8 DQG KHU FDQGLGDF\ ZDV DSSURYHG GXULQJ WKH
+HOVLQNL 6XPPLW DW WKH WLPH RI GLVFXVVLRQV DQG DUJXPHQWV *UHHFH GLG QRW UHIXVH
DQ\ LWHP DV ORQJ DV LWV LQWHUHVWV FRQIRUPHG ZLWK WKH RWKHU PHPEHUV RI WKH (8
*UHHFHKDGFKRVHQQRWEHDWURXEOHPDNHUPHPEHULQWKH(8ZKHQ7XUNH\ZDVRXW
RIWKHGHFLVLRQPDNLQJPHFKDQLVPDQGKDGWRFRPSO\ZLWKWKHGHFLVLRQVPDGH2Q
WKH RWKHU KDQG ZKHQ DLG SDFNDJHV ZHUH LQ TXHVWLRQ *UHHFH FDUULHG RQ LWV
REMHFWLRQV +RZHYHU VXFK REMHFWLRQV ZHUH SDFLILHG WR VRPH H[WHQW GXULQJ WKH
+HOVLQNL VXPPLW DQGWKHWZRDJUHHGRQFRRSHUDWLRQIRUWKHPHPEHUVKLSSURFHVVRI
7XUNH\LQWRWKH(8
$OWKRXJKSROLWLFLDQVDQGUHSUHVHQWDWLYHVRISULYDWHVHFWRUKDGORQJDJRDJUHHG
XSRQWKHQHHGWRLPSURYHHFRQRPLFUHODWLRQVDQGFRRSHUDWLRQEHWZHHQ7XUNH\DQG
*UHHFH QHFHVVDU\ OHJDO DUUDQJHPHQWV WR HQDEOH FRRSHUDWLRQ GHOD\HG WKH SURFHVV
%HIRUH DQG DIWHU WKH PHHWLQJ KHOG LQ $QNDUD LQ 0DUFK DOWKRXJK FRQVLGHUDEOH
SURJUHVV ZDV PDGH RQ VRPH LVVXHV GLIILFXOWLHV SDUWLFXODUO\ RQ WKH UHDOL]DWLRQ RI
LQYHVWPHQWV DQG GRXEOH WD[DWLRQ ZLOO FRQWLQXH XQWLO ZKHQ WKH $JUHHPHQW RQ
WKRVH PDWWHUV FRPHV LQWR IRUFH 2Q WKH RWKHU KDQG IRU WKH EXVLQHVVPHQ RI ERWK
FRXQWULHV MRLQW LQYHVWPHQW SURMHFWV LQ WKHLU RZQ FRXQWULHV DQG LQ WKLUG FRXQWULHV DUH
WLHG WR WKH SUHVHQW HFRQRPLF VWUXFWXUH 7KH ILQDQFLDO FULVLV LQ 7XUNH\ OHDG WKH
LQYHVWRUVLQERWKFRXQWULHVWRVHDUFKIRUVWDELOLW\'XULQJWKH7XUNLVK*UHHN%XVLQHVV
&RXQFLO PHHWLQJV LQ ,VWDQEXO LW ZDV VWUHVVHG WKDW UHSUHVHQWDWLYHV IURP WKH SULYDWH
VHFWRURIERWKFRXQWULHVVKRXOGHQWHULQWRMRLQWYHQWXUHVVRWKDWWKHHFRQRPLFFULVLVLQ
7XUNH\ FDQ EH VXUPRXQWHG :LWKLQ WKLV IUDPHZRUN LW ZDV DJUHHG WR ZRUN LQ
FRRSHUDWLRQ DQG VROLGDULW\ IRU WKH GHYHORSPHQW RI HFRQRPLF UHODWLRQV ZLWK WKH (8
WRR5HJDUGLQJWKHSUHSDUDWLRQVIRUWKH2O\PSLFJDPHVLQ$WKHQVWKH\DJUHHG
IRU FRRSHUDWLRQ RQ WRXULVP DQG VWUHVVHG WKDW WKH\ FRXOG FUHDWH MRLQW SURMHFWV LQ WKLV
ILHOG2QO\ZKHQWKHVHSURMHFWVDUHEURXJKWWROLIHWKHLULPSDFWRQSROLWLFDOLVVXHVFDQ
EHREVHUYHG
2QH KDV WR EH UHDOLVWLF DERXW WKH GHJUHH RI WKH FRQWULEXWLRQ WKDW WKH
LPSURYHPHQWLQHFRQRPLFUHODWLRQVDQGFRRSHUDWLRQFDQEULQJWRWKHVROXWLRQRIOHJDO
DQGSROLWLFDOGLVSXWHVEHWZHHQ7XUNH\DQG*UHHFH1RPDWWHUKRZIDUWKHGLPHQVLRQ
RIHFRQRPLFSURJUHVVFDQUHDFKLWLVLPSRVVLEOHWRWKLQNWKDWLWZRXOGPDNHDGLUHFW
SRVLWLYHLPSDFWRQWKHVROXWLRQRI$HJHDQLVVXHVVLQFH$HJHDQGLVSXWHVLQYROYHWKH
VRYHUHLJQW\ULJKWVDQGQDWLRQDOLQWHUHVWVRIERWKFRXQWULHV:KHQWKHVHYLWDOQDWLRQDO
LQWHUHVWVDUHLQTXHVWLRQQHLWKHUVLGHZLOOVDFULILFHWKRVHIRUHFRQRPLFEHQHILWV8QGHU
WKHVH FLUFXPVWDQFHV WKH SURJUHVV LQ HFRQRPLF UHODWLRQV ZLOO GHILQLWHO\ FRQWULEXWH WR
EXLOG XS WKH FRQILGHQFH DWPRVSKHUHEHWZHHQWKHWZRFRXQWULHV)RUWKHFRQILGHQFH
JDLQHG WR EH VXVWDLQHG WKH VLGHV PXVW SUHVHUYH WKHLU VWUDWHJLF LQWHUHVWV ZKLFK ZLOO
DOVRHIIHFWWKHLUWDNLQJWDFWLFDOVWDQFH&%0VDQGWKHLUHIILFLHQWLPSOHPHQWDWLRQSOXV
WKH VLGHV WU\LQJ WR LPSURYH FRRSHUDWLRQ RQ WRSLFV RWKHU WKDQ HFRQRPLF UHODWLRQV
SROLWLFLDQV DQG QDWLRQDO SXEOLF RSLQLRQ LQ ERWKFRXQWULHVUHDFKLQJDIOH[LEOHOHYHODUH
DOOIDFWRUVZKLFKZLOOFRQWULEXWHWRQHJRWLDWLRQEHWZHHQ7XUNH\DQG*UHHFH
$OWKRXJKWKHSURSRUWLRQRIWKHLUPXWXDOIRUHLJQWUDGHILJXUHVZLWKLQWRWDOWUDGH
UHVXOWVJUDGXDOO\LPSURYHGWKHDGYDQWDJHRIHFRQRPLFUHODWLRQVLVQRWHQRXJKWREH
DGHWHUUHQWIDFWRULQWKHSROLWLFDOGHFLVLRQPDNLQJSURFHVV'XULQJWKHgFDODQFULVLV
GXH WR WKH 7XUNLVK SXEOLF RSLQLRQ ER\FRWWLQJ ,WDOLDQ PDGH JRRGV WKH LPSRUWV IURP
,WDO\ WR 7XUNH\ GHFUHDVHG DERXW O ELOOLRQ SURSRUWLRQDOO\ 7KH VDPH WUHQG
ZDVQRWWUDFHGLQ7XUNLVK*UHHNHFRQRPLFUHODWLRQVVLQFHWUDGHILJXUHVZHUHDOUHDG\
ORZ DQG GLG PDNH D SUHVVXUL]LQJ LPSDFW RYHU GHWHUPLQLQJ IRUHLJQ SROLF\ 7KLV
VLWXDWLRQLVLPSRUWDQWLQWKHDVSHFWRIWKHGLPHQVLRQRIIRUHLJQWUDGHLWVGLUHFWLRQDQG
WKH VHFWRUV RQ ZKLFK LW LV GHQVHU WKDQ WKH RWKHUV 7KHUH LV QR YLWDO SURGXFW LQ WKH
LWHPV RI WUDGH EHWZHHQ 7XUNH\ DQG *UHHFH ZKLFK FDUULHV VWUDWHJLF LPSRUWDQFH DQG
DOVRWKHEDODQFHEHWZHHQLPSRUWVDQGH[SRUWVGRHVQRW\LHOGDVRUWRIGHSHQGHQF\WR
HLWKHU VLGH DQ XSSHUKDQG LQ EDUJDLQLQJ :KHQ FRQVLGHUHG IURP DQRWKHU DQJOH WKH
UHDOL]DWLRQ RI ORQJ WHUP MRLQW LQYHVWPHQWV DQG FRPPHUFLDO UHODWLRQV EHWZHHQ WKH
VWDWHV WR D JUHDW H[WHQW GHSHQG XSRQ VXVWDLQHG VWDELOLW\ EHWZHHQ WKHP 7KH
DJUHHPHQWFRQFOXGHGLQDPRQJ,UDQ7XUNH\DQG*UHHFHLQYROYLQJWUDQVSRUWRI
QDWXUDO JDV SURYHV WKDW VXFK VXVWDLQDELOLW\ DQG VWDELOLW\ LV WDUJHWHG +RZHYHU LQ WKH
ORQJWHUPLWLVDIDFWWKDWWKHUHLVJUHDWSRWHQWLDODQGFKDQFHIRUWKHLPSURYHPHQWRI
HFRQRPLFUHODWLRQVDQGIRUWKHJURZLQJRIFRPPRQLQWHUHVWVDPRQJWKHVHFRXQWULHV
7XUNH\¶V OHYHO RI LQGXVWULDOL]DWLRQ DQG WKH WRXULVP SRWHQWLDO ZKLFK WKH WZR FRXQWULHV
KROGDQGWKHLUYDVWFRPPHUFLDOSURVSHFWVSURYLGHQXPHURXVFKDQFHVIRUQDWLRQDODQG
LQWHUQDWLRQDOLQYHVWRUV
$QRWKHUSRLQWZKLFKKDVWREHWDNHQXSLQWKHFRQFHSWRIFRQILGHQFHEXLOGLQJLV
WKDW WKHVH PHDVXUHV DUH QRW RQO\ PHDQW SUHYHQW PLOLWDU\ FRQIURQWDWLRQ EHWZHHQ WKH
PLOLWDU\ IRUFHV RI ERWK FRXQWULHV $OWKRXJK LQ WKH EHJLQQLQJ WKH PHDVXUHV ZHUH
PHDQWIRUWKDWSXUSRVHLQWKHORQJWHUPIRUDOOWKHVHHIIRUWVWRJLYHIUXLWIXOUHVXOWVWKH
PXWXDO SHUFHSWLRQV RIERWKQDWLRQVDERXWHDFKRWKHUKDYHWREHSRVLWLYHO\FKDQJHG
DQG GLYHUWHG WRZDUGV QHJRWLDWLRQ DQG FRRSHUDWLRQ E\ PHDQV RI VWUXFWXUDO MRLQW
SURMHFWV %RWK FRXQWULHV VKRXOG EDVHWKHLUIXWXUHGHYHORSPHQWLQWKHD[LVRIWKH(8
DQGSDUWLFXODUO\LPSURYHFRRSHUDWLRQDPRQJWKHSHRSOHLQERUGHUUHJLRQVDQGVKRXOG
SURYLGH QHFHVVDU\ PHDQV RI FRPPXQLFDWLRQ DQG PDNH DOO OHJDO DUUDQJHPHQWV WR
HDVH WKHLU UHODWLRQV LQ HYHU\ ILHOG )RU WKH VKRUW YLVLWV EHWZHHQ WKH VPDOO LVODQGV RQ
WKH$HJHDQDQG7XUNH\YLVDUHTXLUHPHQWVKRXOGEHOLIWHGDQGZLGHVSUHDG0RUHRYHU
OHJDODUUDQJHPHQWVDUHQHHGHGE\WKHVPDOOEXVLQHVVRZQHUVLQWKHFRDVWDOUHJLRQV
LQ OLQH ZLWK WKHLU FRQGLWLRQV DQG UHTXLUHPHQWV )RU LQVWDQFH H[SRUW RI JRRGV WR WKH
QHDUHVW LVODQG LQ WKH $HJHDQ LV PDGH WKURXJK WKH 3LUHRXV SRUW 7KLV FDXVHV H[WUD
EXUHDXFUDF\ DQG EULQJV H[WUD FRVW IRU VPDOO EXVLQHVV ZKLFK LQ WXUQ FUHDWHV
UHOXFWDQFH IRU FRRSHUDWLRQ 7KH ERUGHU JDWHV SUREOHP ZKLFK FRQVWLWXWHV JUHDW
KDQGLFDSIRUWUDQVLWWUDQVSRUWEHWZHHQ7XUNH\DQG*UHHFHVKRXOGEHKDQGOHGZLWKRXW
GHOD\DQGVKRXOGEHVXSSRUWHGZLWKFRPPRQSURMHFWV,QWKLVUHVSHFWFRPPRQHIIRUWV
XQGHUWKHIUDPHZRUNRIWKH(8DQG6(&,VKRXOGEHDFFHOHUDWHG
5HIHUHQFHV
$FDUg]JHQ³6LODKODQPD$VNÕ\D$OÕQÕ\RU´&XPKXUL\HW$SULOS
$NVX )XDW ³&RQILGHQFH 6HFXULW\ DQG &RQIOLFW 5HVROXWLRQ ,QLWLDWLYHV LQ WKH %DONDQV´ 7XUNLVK 5HYLHZ
RI%DONDQ6WXGLHV$QQXDOSS
³(JH YH .ÕEUÕV 6RUXQODUÕQÕQ d|]PQGH $YUXSD %LUOL÷L¶QLQ 7XWXPX´ 6WDUDWHMLN $UDúWÕUPDODU
'HUJLVL<HDU1XPEHU)HEUXDU\SS
³6ÕQÕU %|OJHOHULQLQ .DONÕQPDVÕQD <|QHOLN 6ÕQÕU gWHVL 6WDUDWHMLOHU YH %DONDQODUGD (QWHJUDV\RQ
&DEDODUÕ´øNWLVDWøúOHWPHYH)LQDQV1RYHPEHU1XPEHUSS
³7UN<XQDQ øOLúNLOHULQGH *YHQOLN YH *YHQ $UWWÕUPD dDEDODUÕ´ 6R÷XN 6DYDú 6RQUDVÕQGD
7UN<XQDQøOLúNLOHUL$QNDUD6$(0.<D\ÕQODUÕO
$OSDVODQ6HOLP³%DUÕú0HVDMÕ´&XPKXUL\HW$SULOSS
$\PDQ *OGHQ ³7UN<XQDQ øOLúNLOHULQGH *o YH 7HKGLW´ LQ 7UN 'Õú 3ROLWLNDVÕQÕQ $QDOL]L (G
)DUXN6|QPH]R÷OX,VWDQEXO'HU<D\ÕQODUÕSS
%DOED\0XVWDID³$WLQD7HU|U'HVWHNoLVL´&XPKXUL\HW)HEUXDU\SS
%DWXU1XU<UHNWHQ*OHUHNWHQ<UGPøVWDQEXO'R÷DQ.LWDS
%LOD)LNUHW6DWUDQo7DKWDVÕQGD<HQL+DPOHOHU+DQJL3.."$QNDUDhPLW<D\ÕQFÕOÕN
%ODFN -RVKXD ³*UHHN 'LSORPDF\ DQG WKH +XQW IRU $EGXOODK gFDODQ´
&HPøVPDLO7UNL\H$YUXSD$YUDV\D9ROXPH,VWDQEXO%LOJLhQLYHUVLWHVL<D\ÕQODUÕ
dHYLNFDQ6HUSLO³$WLQD¶GDQ%DUÕú3DNHWL´0LOOL\HW-XQHS
&RXQFLO &RPPRQ 3RVLWLRQ &)63 RI $SULO 8SGDWLQJ &RPPRQ 3RVLWLRQ
&)63 RQ WKH $SSOLFDWLRQ RI 6SHFLILF 0HDVXUHV WR &RPEDW 7HUURULVP DQG
'DXJKHUW\ -DPHV DQG 3IDOW]JUDII 5REHUW / -U &RQWHQGLQJ 7KHRULHV RI ,QWHUQDWLRQDO 5HODWLRQV
1HZ<RUN+DUSHU&ROOLQV
'HXWVFK.DDUO:7KH$QDO\VLVRI,QWHUQDWLRQDO5HODWLRQVQGHG1-(QJOHZRRG&OLIIV
'Õú %DVÕQGD 'ÕúLúOHUL %DNDQÕ $ 0HVXW <ÕOPD]¶ÕQ $WLQD =L\DUHWL $QNDUD 7&
%DúEDNDQOÕN%DVÕQ<D\ÕQYH(QIRUPDV\RQ*HQHO0GUO÷<D\ÕQÕ
'Õú %DVÕQGD 7UN<XQDQ (NRQRPLN .RPLWH 7RSODQWÕODUÕ 0D\ $QNDUD 7&
%DúEDNDQOÕN%DVÕQ<D\ÕQYH(QIRUPDV\RQ*HQHO0GUO÷<D\ÕQÕ
'Õú %DVÕQGD 7UN<XQDQ =LUYHVL $QNDUD 7& %DúEDNDQOÕN %DVÕQ <D\ÕQ YH (QIRUPDV\RQ *HQHO
0GUO÷<D\ÕQÕ
øOHP0XUDW³$GD\OÕ÷Õ2OXPOX.DUúÕODUÕ]´&XPKXUL\HW'HFHPEHUS
³(FHYLW¶WHQ$WLQD¶\Dµ'RVWFD¶8\DUÕ´&XPKXUL\HW-XQHS
³<XQDQLVWDQ%DúEDNDQÕ%DUÕúGD.DUDUOÕ´&XPKXUL\HW'HFHPEHUS
.DGULW]NH 1LHOV ³*UHHFH¶V (DUWKTXDNH 'LSORPDF\´ /H 0RQGH 'LSORPDWLTXH -XQH
.RWLRV $QJHORV DQG 3HWUDNRV *HRUJH ³7KH ,QGXVWULDO DQG 7UDGH 6WUXFWXUH RI WKH *UHHN DQG 7XUNLVK
BHQSGI-XQH
.RXEL 9DOO\ ³7UDGH DQG &RQIOLFW´ (FRQRPLFV DQG 3ROLWLFV /HFWXUH 1RWHV
KWWSZZZYZLXQLEHFKJDVWNRXELHFSRGRZQORDGHFSROHFWXUHSGI-XO\
.ÕOÕo +XOXVL (G &XPKXUL\HW '|QHPLQGH 7UNL\H LOH <XQDQLVWDQ $UDVÕQGD øP]DODQDQ øNLOL
$QODúPDODUgQHPOL%HOJHOHUYH%LOGLULOHU$QNDUD'ÕúLúOHUL%DNDQOÕ÷Õ<D\ÕQODUÕ
.ÕUEDNL<RUJR³<XQDQOÕ3DWURQ'HUWOL´5DGLNDO0DUFK
.RKHQ6DPL³.UL])ÕUVDW2ODELOLU«´0LOOL\HW$SULOS
.XUEHOD0³$%h\HOL÷LøoLQ'HQH\LP7UDQVIHUL´&RRSHUDWLRQ1XPEHU)HEUXDU\S
0HUD\ 6HKD /R]DQ %DUÕú .RQIHUDQVÕ 7XWDQDNODU%HOJHOHU 7DNÕP ,, &LOW ,, ,VWDQEXO <.<
<D\ÕQODUÕ
0RUURZ-6LYHUVRQ5DQG7DEDUHV7³7KH3ROLWLFDO'HWHUPLQDQWVRI,QWHUQDWLRQDO7UDGH7KH0DMRU
3RZHUV´$PHULFDQ3ROLWLFDO6FLHQFH5HYLHZSS
9DOO\.RXEL³7UDGHDQG&RQIOLFW´(FRQRPLFVDQG3ROLWLFV/HFWXUH1RWHV
2UDQ %DVNÕQ 7UN<XQDQ øOLúNLOHULQGH %DWÕ 7UDN\D 6RUXQX $QNDUD 0ONL\HOLOHU %LUOL÷L 9DNIÕ
<D\ÕQODUÕ
5HXWHU -UJHQ ³5HVKDUSLQJ *UHHN7XUNLVK 5HODWLRQV 'HYHORSPHQWV %HIRUH DQG $IWHU WKH (8±
0D\
5HXYHQ\ 5DIDHO ³7KH 7UDGH DQG &RQIOLFW 'HEDWH $ 6XUYH\ RI 7KHRU\ (YLGHQFH DQG )XWXUH
5HVHDUFK´3HDFH(FRQRPLFV3HDFH6FLHQFHVDQG3XEOLF3ROLF\9RO1:LQWHU
SS
KWWSZZZPLOOLHPODNJRYWUNRQWNXULQWHUQHWBGHUJLXFXQFXBVD\L\DEDQFLODULQBPDOBHGLQLPLGRF
-XO\
ùHQ)DUXN(JH¶QLQøNL<DNDVÕQGD(NRQRPL$QNDUD0ONL\HOLOHU%LUOL÷L9DNIÕ<D\ÕQODUÕ
6|QPH]R÷OX)DUXN7UN<XQDQøOLúNLOHULYH%\N*oOHU,VWDQEXO'HU<D\ÕQODUÕ
6WHLQ $UWKXU $ ³7UDGH DQG &RQIOLFW 8QFHUWDLQW\ 6WUDWHJLF 6LJQDOLQJ DQG ,QWHUVWDWH 'LVSXWHV´
KWWSSVZHEVEVRKLRVWDWHHGXIDFXOW\ESROOLQVERRNVWHLQSGI-XO\
7DúKDQ 6H\IL ³$ 7XUNLVK 3HUVSHFWLYH RQ (XURSH7XUNH\ 5HODWLRQV RQ WKH (YH RI WKH ,*&´ )RUHLJQ
3ROLF\9RO;;1SS
7DYúDQR÷OX/H\OD³(JH¶QLQøNL<DNDVÕ%LUOHúL\RU´&XPKXUL\HW$SULOS
8÷XU0HKPHW$YUXSD%LUOL÷LYH7UNL\HøVWDQEXO(YHUHVW<D\ÕQODUÕ
8]JHOøOKDQ8OXVDOdÕNDUYH'Õú3ROLWLND$QNDUDøPJH<D\ÕQODUÕ
9HUHPLV 7KDQRV ³7KH 3URWUDFWHG &ULVHV´ *UHHN ± 7XUNLVK 5HODWLRQV LQ WKH (UD RI *OREDOL]DWLRQ
(GV .HULGHV 'LPLWULV DQG 7ULDQWDSK\OORX 'LPLWULRV 7KH ,)3$ ± .RNNDOLV 6HULHV RQ 6RXWK
(XURSHDQ3ROLF\SS
<DYX]DOS(UFPHQW/LGHUOHULPL]YH'Õú3ROLWLND$QNDUD%LOJL<D\ÕQODUÕ
<HWNLQ0XUDW.UW.DSDQÕùDP¶GDQøPUDOÕ¶\DgFDODQøVWDQEXO5HP]L.LWDSHYL
³$JUHHPHQW %HWZHHQ WKH 5HSXEOLF RI 7XUNH\ DQG +HOOHQLF 5HSXEOLF &RQFHUQLQJ WKH 5HDOL]DWLRQ RI WKH
7XUNH\*UHHFH *DV ,QWHUFRQQHFWRU DQG WKH 6XSSO\ RI 1DWXUDO *DV IURP WKH 5HSXEOLF RI 7XUNH\
WR WKH +HOOHQLF 5HSXEOLF 7UNL\H &XPKXUL\HWL LOH <XQDQLVWDQ &XPKXUL\HWL $UDVÕQGD 7UNL\H
KWWSUHJDEDVEDNDQOLNJRYWU(VNLOHUKWP
³$JUHHPHQW %HWZHHQ WKH 5HSXEOLF RI 7XUNH\ DQG +HOOHQLF 5HSXEOLF IRU WKH $YRLGDQFH RI 'RXEOH
7D[DWLRQ ZLWK 5HVSHFW WR 7D[HV RQ ,QFRPH 7UNL\H &XPKXUL\HWL LOH <XQDQLVWDQ &XPKXUL\HWL
$UDVÕQGD *HOLU h]HULQGHQ $OÕQDQ 9HUJLOHUGH dLIWH 9HUJLOHQGLUPH\L gQOHPH $QODúPDVÕ´ 36
7KHUH LV DPHQGPHQW RQ WKH $JUHHPHQW DGYHUWLVHG LQ WKH 2IILFLDO *D]HWWH GDWHG 0DUFK
³$QNDUD0HVDMÕ$OGÕ´&XPKXUL\HW$SULOSS
³$QNDUD*HUL$GÕP$WPD\Õ]´+UUL\HW'HFHPEHUSJ
³$WLQD¶GDQ2OXPOX<DQÕW´&XPKXUL\HW-XQHS
³$WLQD¶\D6DYDú8\DUÕVÕ´0LOOL\HW)HEUXDU\S
³&HP$%¶\H0XKWDo'H÷LOL]´&XPKXUL\HW'HFHPEHUS
³&RRSHUDWLRQ %HWZHHQ 7KH *UHHN 1DWXUDO *DV &RPSDQ\ $QG 7KH 7XUNLVK %27$6´
KWWSZZZSKDQWLVJUQHZVKWPO0DUFK
³*UHHN7XUNLVK 5HODWLRQV 7KH 0DGULG -RLQW 'HFODUDWLRQ´ 7KHVLV 6XPPHU
³øNWLGDUD$oÕN0HNWXS´(NVXVLD-XO\
KWWSZZZE\HJPJRYWU<$<,1/$5,0,=',6%$6,1[[7;7-XQH
³,QIRUPDWLRQ 1RWH &RQFHUQLQJ WKH 3URSRVDOV 0DGH %\ 7XUNH\ WR *UHHFH )HEUXDU\ $ERXW $
3URFHVV RI 3HDFHIXO 6HWWOHPHQW RI 3UREOHPV 2YHU 7KH $HJHDQ %HWZHHQ 7KH 7ZR &RXQWULHV´
3HUFHSWLRQV0DUFK0D\9ROXPH,,,1XPEHU
³-RLQW 'HFODUDWLRQ RQ 7XUNH\*UHHFH &RRSHUDWLRQ LQ (8 0DWWHUV$QNDUD $SULO ´
KWWSZZZPIDJRYWUJUXSEEDEDD$SULOGHIDXOWKWPEP$SULO
³.DUDGHQL]øoLQøúELUOL÷L´&XPKXUL\HW$SULOS
KWWSZZZUDGLNDOFRPWUHNRQRPLNRFKWPO-XQH
³/LSRQQHQ¶LQ(FHYLW¶H7DULKL0HNWXEX´+UUL\HW'HFHPEHUS
³gQ\DUJÕODUD.DSÕOPDGDQ$SDoÕN´(OHIWHURWLSLD-XO\
KWWSZZZE\HJPJRYWU<$<,1/$5,0,=',6%$6,1[[7;7-XQH
³3DSDQGUHX7DEXODUÕ<ÕNDOÕP´&XPKXUL\HW-DQXDU\S
³3DWWHUQVRI*OREDO7HUURULVP(XURSH2YHUYLHZ´
³6LPLWLV,0).RúXOODUÕQÕg÷UHQGL´&XPKXUL\HW$SULOS
³6RODQD7UNL\HYH<XQDQLVWDQ¶ÕQ*YHQ$UWWÕUÕFÕgQOHPOHU.RQXVXQGD$QODúWÕNODUÕQÕ%HOLUWWL´
<XQDQLVWDQ¶ÕQ6HVL5DG\RVX-XQH
KWWSZZZE\HJPJRYWU<$<,1/$5,0,=',6%$6,1[[+70$SULO
³7KH /DZ RQ WKH 0HDVXUHV 7DNHQ IRU WKH 6WDWHV :LWKLQ WKH %RUGHUV RI :KLFK 7XUNLVK &LWL]HQV DUH
$OORZHG WR 2ZQ 5HDO (VWDWH DQ LQ 5HFLSURFLW\ 3ULQFLSOH DQG 6DPH 3ULYLOHJHV *UDQWHG WR 7KDW
6WDWH &LWL]HQV :LWKLQ 7XUNH\ +XGXWODUÕ 'DKLOLQGH 7HEDDPÕ]ÕQ (PODNLQH 9D]L\HW (GHQ
(8ILQDQFRRSKWP$SULO
³7UNL\HYH<XQDQLVWDQ(JH'HQL]L
QGH$VNHUL%LUdDWÕúPDdÕNPDVÕQÕgQOH\HFHN7HGELUOHU$OPD\Õ
.DUDUODúWÕUGÕODU´$PHULND¶QÕQ6HVL5DG\RVX-XQH
KWWSZZZE\HJPJRYWU<$<,1/$5,0,=',6%$6,1[[+70$SULO
³7UNL\H¶\OHøOJLOL,0)%HOJHVL$WLQD¶\D6Õ]GÕ´+UUL\HW$SULOS
³7h6ø$'¶GDQ<XQDQLVWDQD6HUW7DYÕU´&XPKXUL\HW0DUFKSJ
³9HQL]HORV$YUXSDOÕ%LU7UNL\HøVWL\RUX]´'Q\D$SULO
KWWSZZZNRELQHWRUJWUKL]PHWOHUNDWLOLPFLNXUXOXúODUYDNLIODU\XQDQLVWDQVHFKWPO
)HEUXDU\
KWWSZZZGHLNRUJWU
KWWSZZZHLDGRHJRYHPHXFDEVJUHHFHKWP0DUFK
KWWSZZZPIDJRYWUJUXSEEDEDDIHEUXDU\GHIDXOWKWP
KWWSZZZWNJPJRYWUWDSXQHWDWNJPJRYWUWHVNLODW\DSLVLWHVNLODWVHPDVL\DEDQFLLVGEVNKWP0DUFK
KWWSZZZWUHDVXU\JRYWUVWDW\DEVHU\EVVWDWV[OV-XO\
KWWSZZZWUHDVXU\JRYWUVWDW\DEVHU\EVVWDWV[OV-XO\
KWWSZZZWXUNLVKJUHHNRUJEHUQKWP-XQH
KWWSZZZWXUNLVKJUHHNRUJPHNWXSODKWP-XQH
KWWSZZZWXUNLVKJUHHNRUJ\SDSXOLDVKWP-XQH
KWWSZZZ\DVHGRUJWU?JHQHO?GRFV?\DEVHUILUPDODU[OV-XO\
KWWSZZZ\DVHGRUJWU?JHQHO?GRFV?\DEVHUILUPDODU[OV-XO\
$11(;,
(;3257$1',032572)785.(<72*5((&(
(;32572)785.(<
)RRGDQGOLYHDQLPDOV
/LYHDQLPDOV
&HUHDOVDQGFHUHDOSUHSDUDWLRQV
9HJHWDEOHVDQGIUXLW
6XJDUVVXJDUSUHSDUDWLRQVDQGKRQH\
$QLPDOIRRGV
2WKHUV
%HYHUDJHVDQGWREDFFR
%HYHUDJHV
7REDFFRDQGWREDFFRPDQXIDFWXUHV
$QLPDODQGYHJHWDEOHRLOVIDWVZD[HV
2LOVHHGVDQGROHDJLQRXVIUXLWV
&UXGHUXEEHU
7H[WLOHILEUHVDQGWKHLUZDVWHV
&UXGHDQLPDODQGYHJHWDEOHPDWHULDOV
L0HWDOOLIHURXVRUHVDQGPHWDOVFUDS
3HWUROHXPSHWUROHXPSURGXFWVDQGUHODWHGPDWHULDOV
3ODVWLFV
3KDUPDFHXWLFDOSURGXFWV
2WKHUFKHPLFDOV
5XEEHUPDQXIDFWXUHVQHV
&RUNDQGZRRGPDQXIDFWXUHV
3DSHUDQGSDSHUERDUGDQGDUWLFOHVRISDSHUSXOSRI
1RQPHWDOOLFPLQHUDOPDQXIDFWXUHVQHV
*ODVVDQGJODVVZDUH
2WKHUV
0DQXIDFWXUHVRIPHWDOVQHV
$XWRPRWLYHSURGXFWV
3RZHUJHQHUDWLQJPDFKLQHU\
2WKHUQRQHOHFWULFDOPDFKLQHU\
2WKHU WUDQVSRUW
(OHFWULFDOPDFKLQHU\DQGDSDUDWXV
$UWLFOHVRIDSSDUHOFORWKLQJDFFHVVRUHWF
2WKHUFORWKLQJDSSDUHOV
YLL2WKHUFRQVXPHUJRRGV
)XUQLWXUHDQGSDUWVWKHUHRI
7UDYHOJRRGVKDQGEDJVDQGVLPLODUFRQWDLQHUV
)RRWZHDU
2WKHUPDQXIDFWXUHGDUWLFOHV
27+(5352'8&76
,032572)785.(<
*5((&( $*5,&8/785$/352'8&76
)RRGDQGOLYHDQLPDOV
/LYHDQLPDOV
&HUHDOVDQGFHUHDOSUHSDUDWLRQV
9HJHWDEOHVDQGIUXLW
6XJDUVVXJDUSUHSDUDWLRQVDQGKRQH\
2WKHUV
%HYHUDJHVDQGWREDFFR
7REDFFRDQGWREDFFRPDQXIDFWXUHV
$QLPDODQGYHJHWDEOHRLOVIDWVZD[HV
2LOVHHGVDQGROHDJLQRXVIUXLWV
+LGHVVNLQVDQGIXUVNLQVUDZ
3XOSDQGZDVWHSDSHU
7H[WLOHILEUHVDQGWKHLUZDVWHV
&UXGHDQLPDODQGYHJHWDEOHPDWHULDOV
L0HWDOOLIHURXVRUHVDQGPHWDOVFUDS
3HWUROHXPSHWUROHXPSURGXFWVDQGUHODWHG
PDWHULDOV
*DVQDWXUDODQGPDQXIDFWXUHG
3ODVWLFV
2WKHUFKHPLFDOV
/HDWKHUOHDWKHUPDQXIDFWXUHVQHVDQGGUHVVHG
IXUVNLQV
3DSHUDQGSDSHUERDUGDQGDUWLFOHVRISDSHUSXOSRI
SDSHU
/LPHFHPHQWDQGIDEULFDWHGFRQVWUXFWLRQPDWHULDOV
*ODVVDQGJODVVZDUH
2WKHUV
$XWRPRWLYHSURGXFWV
2IILFHPDFKLQHVDQGWHOHFRPPXQLFDWLRQV
HTXLSPHQW
3RZHUJHQHUDWLQJPDFKLQHU\
2WKHUQRQHOHFWULFDOPDFKLQHU\
2WKHUWUDQVSRUW
HTXLSPHQW
(OHFWULFDOPDFKLQHU\DQGDSDUDWXV
$UWLFOHVRIDSSDUHOFORWKLQJDFFHVV
2WKHUFORWKLQJDSSDUHOV
YLL2WKHUFRQVXPHUJRRGV
3UHIDEULFDWHGEXLOGLQJVVDQLWDU\SOXPELQJKHDWLQJ
DQGOLJKWLQJIL[WXUHV
3URIHVVLRQDOVFLHQWLILFDQGFRQWUROOLQJLQVWUXPHQWVDQG
DSSDUDWXV
2WKHUPDQXIDFWXUHGDUWLFOHV
6RXUFH 3UHSDUHG E\ XVLQJ ³,PSRUW )URP 2WKHU &RXQWULHV$QQXDO´ KWWSZZZIRUHLJQWUDGHJRYWUHDGHQJOLVKVHFWRUVLPFR[OV
'HFHPEHU