&KLQD 0DNHV 7KH :RUOG 7DNHV 0DJD]LQH 7KH $WODQWLF
‡ 68%6&5,%( ‡ 5(1(: ‡ *,9( $ *,)7 ‡ ',*,7$/ (',7,21 1\S` (\N\Z[
7YPU[ c *SVZL
&KLQD 0DNHV 7KH :RUOG 7DNHV $ / 22. ,16,'( 7 +( : 25 / '¶6 0$18) $&7 85 ,1* &(17 (5 6+2: 6 7 +$7 $0(5 ,&$ 6+28/ ' : (/ &20( &+,1$¶6 5 ,6(² ) 25 12:
%\ -DPHV )DOORZV
&217$,1(56 5($'< )25 6+,30(17 IURP WKH SRUW RI 6KHQ]KHQ
3KRWRV E\ 0LFKDHO &KULVWRSKHU %URZQ )URP $WODQWLF 8QERXQG
ZZZ WKHDWODQWLF FRP PDJD]LQH SULQW FKLQD PDNHV WKH ZRUOG WDNHV
&KLQD 0DNHV 7KH :RUOG 7DNHV 0DJD]LQH 7KH $WODQWLF
6OLGHVKRZ 0DGH LQ &KLQD -DPHV )DOORZV QDUUDWHV SKRWRV IURP WKH KHDUW RI WKH &KLQHVH PDQXIDFWXULQJ G\QDPR +DOI WKH WLPH , KDYH VSHQW LQ &KLQD , KDYH VSHQW LQ IDFWRULHV $W OHDVW WKDW¶V KRZ LW IHHOV²DQG LW¶V D IHHOLQJ , VRXJKW 7KH IDFWRULHV ZKHUH PRUH WKDQ PLOOLRQ &KLQHVH PHQ DQG ZRPHQ WRLO DQG IURP ZKLFK FDPHUDV FORWKHV DQG HYHU\ RWKHU VRUW RI ZDUH IORZ RXW WR WKH ZRUOG DUH WR PH WKH PRVW VWDUWOLQJ DQG LQWHQVH DVSHFW RI WRGD\¶V &KLQD )RU QRZ WKH\ DUH DOVR WKH PRVW LPSRUWDQW 7KH\ DUH VWDUWOLQJ DERYH DOO LQ WKHLU VFDOH , ZDV SUHSDUHG IRU WKH VN\OLQH RI 6KDQJKDL DQG LWV PSK 0DJOHY WUDLQ WR WKH DLUSRUW DQG IRU WKH QRQVWRS FRQVWUXFWLRQ GXVW DQG EXVWOH RI %HLMLQJ (YHU\ DFFRXQW RI PRGHUQ &KLQD PHQWLRQV WKHP %XW , KDG QR FRQFHSW RI WKH VZHHS RI ZKDW KDV EHFRPH WKH ZRUOG¶V PDQXIDFWXULQJ FHQWHU WKH 3HDUO 5LYHU 'HOWD RI *XDQJGRQJ SURYLQFH WKH ROG &DQWRQ UHJLRQ MXVW QRUWK RI +RQJ .RQJ 7KDW RQH SURYLQFH PLJKW KDYH D PDQXIDFWXULQJ ZRUNIRUFH ODUJHU WKDQ $PHULFD¶V 6WDWLVWLFV IURP &KLQD DUH ODUJHO\ JXHVVHV EXW *XDQJGRQJ¶V SRSXODWLRQ LV DURXQG PLOOLRQ ,I HYHQ RQH ILIWK RI LWV SHRSOH KROG PDQXIDFWXULQJ MREV DV VHHPV OLNHO\ LQ ELJ FLWLHV WKDW ZRXOG EH PLOOLRQ ²YHUVXV PLOOLRQ LQ WKH HQWLUH 8QLWHG 6WDWHV 2QH IDFLOLW\ LQ *XDQJGRQJ SURYLQFH WKH IDPRXV )R[FRQQ ZRUNV VLWV LQ WKH PLGGOH RI D FRQXUEDWLRQ MXVW RXWVLGH 6KHQ]KHQ ZKHUH LW RFFXSLHV URXJKO\ DV PXFK VSDFH DV D PDMRU DLUSRUW 6RPH SHRSOH WKH QXPEHU , KHDUG PRVW RIWHQ HVWLPDWHV UDQJH EHWZHHQ DQG ZRUN RQ LWV DVVHPEO\ OLQHV VOHHS LQ LWV GRUPLWRULHV DQG HDW LQ LWV FRPSDQ\ FDIHWHULDV , ZDV WROG WKDW )R[FRQQ¶V FDWHUHUV NLOO SLJV HDFK GD\ WR IHHG LWV HPSOR\HHV 7KH QXPEHU ZRXOG PDNH VHQVH²LW¶V RQH SLJ SHU SHRSOH LQ D FRXQWU\ ZKHUH SLJV DUH UHODWLYHO\ VPDOO DQG SRUN LV D VWDSOH PHDW , KHDUG QR HVWLPDWH IRU FKLFNHQV )URP WKH PDMRU SRUWV VHUYLQJ WKH DUHD +RQJ .RQJ DQG 6KHQ]KHQ KDUERUV FDUJR VKLSV OHIW ODVW \HDU FDUU\LQJ WKH HTXLYDOHQW RI PRUH WKDQ PLOOLRQ RI WKH VWDQGDUG IRRW ORQJ PHWDO FRQWDLQHUV WKDW HQG XS RQ WUXFNV RU UDLOURDG FDUV 7KDW¶V RQH SHU VHFRQG URXQG WKH FORFN DQG \HDU URXQG²DQG LW¶V OHVV WKDQ KDOI RI &KLQD¶V H[SRUW WRWDO :KDW¶V LQ WKH FRQWDLQHUV WKDW FRPH EDFN IURP $PHULFD" 0\ JXHVV ZDV ³GROODUV´ LQ IDFW WKH WZR OHDGLQJ VKLS ERUQH H[SRUWV IURP WKH 8QLWHG 6WDWHV WR &KLQD E\ YROXPH DUH VFUDS SDSHU DQG VFUDS PHWDO IRU UHF\FOLQJ $QG WKH IDFWRULHV DUH LPSRUWDQW IRU &KLQD DQG HYHU\RQH HOVH 6RPHGD\ &KLQD PD\ PDWWHU LQWHUQDWLRQDOO\ PDLQO\ IRU WKH QDWXUH RI LWV SROLWLFDO V\VWHP RU IRU LWV VWUDWHJLF DPELWLRQV 7KRVH DUH VLJQLILFDQW HYHQ QRZ RI FRXUVH EXW &KLQD¶V VXFFHVV LQ PDQXIDFWXULQJ LV ZKDW KDV GHWHUPLQHG LWV SODFH LQ WKH ZRUOG 0RVW RI ZKDW KDV EHHQ JRRG DERXW &KLQD RYHU WKH SDVW JHQHUDWLRQ KDV FRPH GLUHFWO\ RU LQGLUHFWO\ IURP LWV IDFWRULHV 7KH FRXQWU\ KDV SXEOLF PRQH\ ZLWK ZKLFK WR EXLOG URDGV KRXVHV DQG VFKRROV²HVSHFLDOO\ URDGV 7KH YDVW SRSXODWLRQ LQ WKH FRXQWU\VLGH KDV ZKDW WKHLU IRUHEHDUV DFXWHO\ ODFNHG DQG SHDVDQWV HOVHZKHUH WRGD\ VWLOO GR D FKDQFH DW SD\LQJ MREV ZKLFK PHDQV D FKDQFH WR HVFDSH UXUDO SRYHUW\ $PHULFDQV FRPSODLQ DERXW FKHDS MXQN SRXULQJ RXW RI &KLQHVH PLOOV EXW WKH\ UHO\ RQ &KLQD IRU D ORW WKDW LV QRW MXQN DQG ZKRVH FKHDS SULFH LV LPSRUWDQW WR $PHULFDQ LQGXVWULDO DQG GRPHVWLF OLIH 0RGHUQ FRQVXPHU FXOWXUH UHVWV RQ WKH DVVXPSWLRQ WKDW WKH QLFHVW PRVW DGYDQFHG JRRGV ²FRPSXWHUV DXGLR V\VWHPV ZDOO VL]HG 79V²ZLOO JHW FKHDSHU \HDU E\ \HDU 0RRUH¶V /DZ ZKLFK LQ RQH YHUVLRQ VD\V WKDW WKH SULFH RI FRPSXWLQJ SRZHU ZLOO EH FXW LQ KDOI HYHU\ PRQWKV RU VR LV SDUW RI WKH UHDVRQ EXW &KLQD¶V IDFWRULHV DUH D ELJ SDUW WRR
ZZZ WKHDWODQWLF FRP PDJD]LQH SULQW FKLQD PDNHV WKH ZRUOG WDNHV
&KLQD 0DNHV 7KH :RUOG 7DNHV 0DJD]LQH 7KH $WODQWLF
0XFK RI ZKDW LV WKUHDWHQLQJ DERXW WRGD\¶V &KLQD DOVR FRPHV IURP LWV IDFWRULHV 0DQ\ SHRSOH LQVLGH &KLQD DQG QHDUO\ HYHU\RQH RXWVLGH FDQ DYRLG WKH GLUHFW HIIHFWV RI WKH FRXQWU\¶V SROLWLFDO FRQWUROV ,W LV PXFK KDUGHU WR DYRLG LWV SROOXWLRQ 7KH DLU LQ &KLQHVH FLWLHV LV ZRUVH WKDQ , H[SHFWHG DQG EHFDXVH WKH SROOXWLRQ DIIHFWV VR PDQ\ SHRSOH LQ VXFK D ZLGH UDQJH RI SODFHV LW LV PRUH GDPDJLQJ WKDQ /RQGRQ¶V 0DQFKHVWHU¶V RU 3LWWVEXUJK¶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¶V DLU SROOXWLRQ SUREOHPV WKH ZRUOG¶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¶V SROLWLFDO GHEDWHV DERXW WKH ³&KLQD RSSRUWXQLW\´ DQG HYHQ PRUH WKH ³&KLQD WKUHDW´ VHHP GLVWDQW WKHRUHWLFDO DQG LPSUHFLVH IURP WKH SHUVSHFWLYH RI WKH IDFWRULHV ZKHUH WKH RXWVRXUFLQJ DQG H[SRUWLQJ RFFXU 7KH LQGXVWULDOLVWV IURP WKH 8QLWHG 6WDWHV (XURSH RU -DSDQ ZKR DUH GHFLGLQJ KRZ PXFK RI WKHLU SURGXFWLRQ WR PRYH WR &KLQD WDON DERXW WKH SURFHVV LQ YHU\ GLIIHUHQW WHUPV IURP WKRVH XVHG LQ $PHULFDQ SROLWLFDO GLVFXVVLRQ 2QH LOOXVWUDWLRQ 7KH DUWLILFLDOO\ ORZ YDOXH RI &KLQD¶V FXUUHQF\ UHODWLYH WR WKH GROODU FRPHV QHDU WKH WRS RI $PHULFDQ FRPSODLQWV DERXW &KLQHVH WUDGH SROLF\ 7KH FXUUHQF\ LV WKH \XDQ UHQPLQEL²OLWHUDOO\ ³SHRSOH¶V PRQH\´²RU 50% 7KLV LV PRUH OLNH WKH HLJKWK RU WHQWK LVVXH WKDW FRPHV XS ZKHQ EXVLQHVV RIILFLDOV GLVFXVV WKH IDFWRULHV WKH\ DUH RSHQLQJ LQ RQH FRXQWU\ DQG FORVLQJ LQ DQRWKHU $QG ZKHQ LW GRHV FRPH XS WKH FRQWH[W LV XVXDOO\ ZKHWKHU WKH 50%¶V ULVH ZLOO IRUFH D FRPSDQ\ WR SXW LWV QH[W IDFWRU\ QRW LQ &KLQD¶V FURZGHG FRDVWDO UHJLRQ EXW VRPHSODFH ZLWK HYHQ ORZHU FRVWV OLNH WKH UHPRWH LQWHULRU SURYLQFHV ZKHUH VDODULHV DUH ORZHU DQG FRPPHUFLDO VSDFH LV FKHDSHU²RU SHUKDSV 9LHWQDP RU &DPERGLD 6R WRR ZLWK FRPSODLQWV DERXW &KLQHVH JRYHUQPHQW VXEVLGLHV IRU H[SRUWLQJ LQGXVWULHV ZLGHVSUHDG DEXVH RI LQWHOOHFWXDO SURSHUW\ DQG HYHQ ³VODYH ODERU´ LQVLGH WKH YDVW IDFWRULHV 6RPH RI WKHVH FRPSODLQWV DUH ZHOO IRXQGHG RWKHUV DUH QRW EXW HYHQ LI DOO ZHUH WUXH WKH\ ZRXOG PLVGHVFULEH DQG XQGHUYDOXH ZKDW LV JRLQJ RQ KHUH 7DONLQJ DERXW &KLQHVH LQGXVWULDO JURZWK $PHULFDQV DUH LQ WKH SRVLWLRQ RI WK FHQWXU\ (XURSHDQV ZKR DFWHG DV LI $PHULFD¶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¶V ULVH²QRU GR WKH FRUUHVSRQGLQJ DVSHFWV RI PRGHUQ &KLQD¶V EHKDYLRU IXOO\ H[SODLQ ZKDW &KLQD KDV DFKLHYHG
ZZZ WKHDWODQWLF FRP PDJD]LQH SULQW FKLQD PDNHV WKH ZRUOG WDNHV
&KLQD 0DNHV 7KH :RUOG 7DNHV 0DJD]LQH 7KH $WODQWLF
, FDQ¶W SUHWHQG WR NQRZ WKH FRPSOHWH VWRU\ RI &KLQD¶V LQGXVWULDO ULVH %XW , FDQ GHVFULEH ZKDW , KDYH VHHQ DQG WKH PDLQ ZD\ LW KDV FKDQJHG P\ PLQG /DUJH VFDOH VKLIWV LQ HFRQRPLF SRZHU KDYH HIIHFWV EH\RQG WKH SXUHO\ HFRQRPLF $PHULFDQV QHHG QRW EH KRVWLOH WRZDUG &KLQD¶V ULVH EXW WKH\ VKRXOG EH ZDU\ DERXW LWV HYHQWXDO HIIHFWV 7KH 8QLWHG 6WDWHV LV WKH RQO\ QDWLRQ ZLWK WKH VFDOH DQG SRZHU WR WU\ WR VHW WKH WHUPV RI LWV LQWHUDFWLRQ ZLWK &KLQD UDWKHU WKDQ MXVW VXFFXPE 6R VWDUWLQJ QRZ $PHULFDQV QHHG WR FRQVLGHU WKH HFRQRPLF HQYLURQPHQWDO SROLWLFDO DQG VRFLDO JRDOV WKH\ FDUH DERXW GHIHQGLQJ DV &KLQHVH LQIOXHQFH JURZV 7KH FRQVLGHUDWLRQ PLJKW EHVW VWDUW IURP WKH SRLQW DERXW ZKLFK ,¶YH FKDQJHG P\ PLQG 6R IDU $PHULFD¶V HFRQRPLF UHODWLRQVKLS ZLWK &KLQD KDV EHHQ VXFFHVVIXO DQG EHQHILFLDO²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¶UH DERXW WR HPEDUN 7KH PRUQLQJ FURZG DW WKH )RXU 3RLQWV KDV WKDW VDPH VRUW RI DQWLFLSDWRU\ EX]] 6KHQ]KHQ ZKLFK LV WKH SDUW RI &KLQD LPPHGLDWHO\ QRUWK RI +RQJ .RQJ DQG LWV ³1HZ 7HUULWRULHV ´ GLG QRW H[LVW DV D FLW\ DV UHFHQWO\ DV 5RQDOG 5HDJDQ¶V WLPH LQ WKH :KLWH +RXVH ,W ZDV D ILVKLQJ WRZQ RI WR SHRSOH SUDFWLFDOO\ XQQRWLFHDEOH E\ &KLQHVH VWDQGDUGV 7RGD\¶V RWKHU ELJ FRDVWDO PDQXIDFWXULQJ FHQWHUV VXFK DV ;LDPHQ *XDQJ]KRX +DQJ]KRX DQG 6KDQJKDL ZHUH IRU FHQWXULHV FRQVHTXHQWLDO &KLQHVH FLWLHV 1RW 6KHQ]KHQ ,WV SRSXODWLRQ KDV JURZQ DW OHDVW D KXQGUHGIROG LQ WKH SDVW \HDUV² UDWKHU WKDQ PHUHO\ WULSOHG RU TXDGUXSOHG DV LQ RWKHU FLWLHV ,W LV URXJKO\ DV SRSXORXV DV 1HZ <RUN OLNH PDQ\ &KLQHVH FLWLHV , NHHS FRPLQJ DFURVV 6KHQ]KHQ KDV VFRUHV RI VN\VFUDSHUV DQG PDQ\ PDQ\ KXQGUHGV RI IDFWRULHV 7KH VWRU\ RI 6KHQ]KHQ¶V ERRP LV LQ D VHQVH WKH ILUVW FKDSWHU LQ PRGHUQ &KLQD¶V LQGXVWULDOL]DWLRQ ³'XULQJ WKH IRXQGLQJ SHULRG 6KHQ]KHQ SHRSOH ZHUH EROG DQG UHVROXWH LQ VPDVKLQJ WKH WUDPPHOV RI WKH ROG LGHDV ´ VD\V WKH (QJOLVK YHUVLRQ RI WKH FLW\¶V KLVWRU\ DV UHFRXQWHG LQ 6KHQ]KHQ¶V PXQLFLSDO PXVHXP LQ DQ RGG PRGHUQ &KLQHVH FRPELQDWLRQ RI 0DRLVW ERPEDVW DQG VXSHUFDSLWDOLVW SHUVSHFWLYH ³:LWK WKH PDUNHW RULHQWHG UHIRUPV DV WKH EUHDNWKURXJK SRLQW WKH\ VKRRN RII WKH \RNH RI WKH SODQQHG HFRQRP\ DQG JUDGXDOO\ EXLOW XS QHZ PDQDJHPHQW V\VWHPV ´ :KDW DOO WKLV UHIHUV WR LV WKH HVWDEOLVKPHQW LQ WKH ODWH VXPPHU RI RI 6KHQ]KHQ DV D ³VSHFLDO HFRQRPLF ]RQH ´ ZKHUH IHZ OLPLWV RU FRQWUROV ZRXOG DSSO\ DQG EXVLQHVVHV IURP DURXQG WKH ZRUOG ZRXOG EH LQYLWHG WR VHW XS VKRS 6KHQ]KHQ ZDV DWWUDFWLYH DV DQ H[SHULPHQWDO ORFDOH QRW MXVW EHFDXVH LW
ZZZ WKHDWODQWLF FRP PDJD]LQH SULQW FKLQD PDNHV WKH ZRUOG WDNHV
&KLQD 0DNHV 7KH :RUOG 7DNHV 0DJD]LQH 7KH $WODQWLF
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²WUDQVLHQW URXJK XQPDQQHUHG IXOO RI RSSRUWXQLW\²DQG WKDW FKDUDFWHUL]HG 0DQFKHVWHU 'HWURLW &KLFDJR /RV $QJHOHV DW WKHLU WLPHV RI IDVWHVW JURZWK 1HZVSDSHUV WKDW FRYHU 6KHQ]KHQ DUH IXOO RI VWRULHV RI GUXJV FULPH DQG YLFH LQ WKH PRVW FURZGHG WHQHPHQW DUHDV ZKHUH ZDOOV DQG VLGHZDONV DUH FRYHUHG ZLWK VSUD\ SDLQWHG SKRQH QXPEHUV 6RPH DUH IRU SURVWLWXWHV EXW PDQ\ DUH IRU YHQGRUV ZKR FDQ SURYLGH IDNH GRFXPHQWV²KHDOWK FHUWLILFDWHV GLSORPDV UHVLGHQFH FUHGHQWLDOV²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²$PHULFDQV 7DLZDQHVH (XURSHDQV -DSDQHVH²RI D VLQJOH FODVV 9LUWXDOO\ DOO RI WKHP DUH GHVLJQHUV HQJLQHHUV RU EX\HUV IURP IRUHLJQ FRPSDQLHV ZKR KDYH FRPH WR PHHW ZLWK &KLQHVH IDFWRU\ RZQHUV 7KH $PHULFDQV LQ WKH JURXS WHQG WR EH EHHILHU WKDQ WKH 6KDQJKDL %HLMLQJ FURZG DQG PRUH 0LGZHVWHUQ ORRNLQJ 6RPH ZHDU FRPSDQ\ VKLUWV RU Q\ORQ MDFNHWV ZLWK WKHLU FRPSDQ\¶V ORJR RQ WKH SRFNHW :KHQ WKH )RXU 3RLQWV UHVWDXUDQW RSHQV DW LQ WKH PRUQLQJ IRUHLJQHUV EHJLQ DVVHPEOLQJ IRU EUHDNIDVW WKH PHDO ZKHQ SHRSOH PRVW FUDYH WKHLU QDWLYH FXLVLQH ,W LV ODLG RXW IRU DOO FRPHUV RQ D KXJH EXIIHW IRU WKH (XURSHDQV VOLFHG PHDWV DQG FKHHVH JRRG EUHDGV VWURQJ FRIIHH PXHVOL DQG \RJXUW )RU WKH -DSDQHVH SLFNOHV VXVKL FROG QRRGOHV VPRNHG HHO RYHU ULFH )RU WKH 7DLZDQHVH DQG RWKHU &KLQHVH VWHDPHG EXQV GLP VXP KRW FRQJHH FHUHDO )RU WKH $PHULFDQV WKH PDNLQJV RI D 'HQQ\¶V VW\OH ³6ODP´ EUHDNIDVW WKLFN ZDIIOHV HJJV KDVK EURZQ SRWDWRHV VDXVDJH DQG EDFRQ DQG KDP 0\ ZLIH ILQDOO\ DFFXVHG PH RI VSHQGLQJ VR PXFK WLPH LQ 6KHQ]KHQ MXVW IRU WKH EUHDNIDVWV 7KH URRP LV QRLV\ DV SHRSOH GLVFXVV WKHLU SODQV IRU WKH GD\ RU PHHW WKH &KLQHVH IDFWRU\ RIILFLDOV ZKR ZLOO FRQGXFW WKHP RQ WKHLU WRXUV 7KH URRP HPSWLHV GUDPDWLFDOO\ E\ QLQH R¶FORFN DV SHRSOH JR RXW WR PHHW WKHLU GULYHUV DQG YDQV DQG WKH GD\¶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
ZZZ WKHDWODQWLF FRP PDJD]LQH SULQW FKLQD PDNHV WKH ZRUOG WDNHV
&KLQD 0DNHV 7KH :RUOG 7DNHV 0DJD]LQH 7KH $WODQWLF
KLP IRU GLQQHU :KHQ WKH ZDLWHUV VHH WKLV PDQ FRPLQJ WKH\ EULQJ WKH SODLQ :HVWHUQ IRRG²PHDW SRWDWRHV²WKH\ NQRZ KH¶V LQWHUHVWHG LQ ³'R \RX KDYH WKH VDPH WKLQJ HYHU\ QLJKW"´ , DVNHG KLP ZKHQ , VDZ WKH ZDLWHUV¶ UHIOH[LYH UHVSRQVH WR KLV DUULYDO ³, GLGQ¶W FRPH KHUH IRU WKH IRRG ´ KH UHSOLHG 7KLV PDQ KDV OLYHG LQ DQ DSDUWPHQW DW WKH )RXU 3RLQWV IRU WKH ODVW WZR \HDUV DQG LQ RWKHU KRWHOV DURXQG 6KHQ]KHQ IRU WKH SUHYLRXV HLJKW +H PDNHV D SRLQW RI WHOOLQJ SHRSOH WKDW KH GRHV QRW VSHDN &KLQHVH²PRVW EXVLQHVV YLVLWRUV ZKR WU\ KH VD\V KDYH WR ZRUN VR KDUG WR FRSH ZLWK WKH ODQJXDJH WKDW WKH\ IRUJHW ZKDW WKH\¶UH QHJRWLDWLQJ DERXW %XW DW XVHIXO SRLQWV LQ PHHWLQJV KH GURSV LQ &KLQHVH FROORTXLDOLVPV VR WKDW SHRSOH PXVW ZRQGHU ZKHWKHU LQ IDFW KH KDV XQGHUVWRRG HYHU\WKLQJ WKDW KDV EHHQ VDLG +H WHOOV PH KH KDVQ¶W +LV QDPH LV /LDP &DVH\ DQG , KDYH FRPH WR WKLQN RI KLP DV ³0U &KLQD ´
05 &+,1$ /LDP &DVH\ VWDQGV EHVLGH ZRUNHUV DVVHPEOLQJ ODSWRS FRPSXWHUV ³0U &KLQD´ LV DQ HVWDEOLVKHG MRNH\ KRQRULILF OLNH 3HRSOH PDJD]LQH¶V ³6H[LHVW 0DQ $OLYH² ´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³-XVW ZKHQ \RX WKLQN \RX NQRZ ZKDW¶V KDSSHQLQJ KHUH WKDW¶V ZKHQ \RX¶UH LQ GDQJHU ´ KH VD\V ³<RX VHH VRPH QHZ SURGXFW RQ WKH PDUNHW DQG \RX ZRQGHU ZKHUH LW ZDV PDGH²DQG LW WXUQV RXW WR EH D IDFWRU\ \RX GURYH E\ HYHU\ GD\ IRU ILYH \HDUV DQG QHYHU NQHZ ZKDW ZDV JRLQJ RQ LQVLGH <RX FDQ EH KHUH VR ORQJ DQG NQRZ VR OLWWOH ´ %XW IRU P\ SXUSRVHV KH LV 0U &KLQD EHFDXVH KH LV DW WKH FHQWHU RI WKH RYHUODSSLQJ IORZV RI KXPDQLW\ EULQJLQJ WKH ZRUOG¶V ZRUN WR &KLQD
ZZZ WKHDWODQWLF FRP PDJD]LQH SULQW FKLQD PDNHV WKH ZRUOG WDNHV
&KLQD 0DNHV 7KH :RUOG 7DNHV 0DJD]LQH 7KH $WODQWLF
:KHQ QRW GLQLQJ RU VOHHSLQJ DW WKH )RXU 3RLQWV &DVH\ UXQV D FRPSDQ\ KH RZQV RXWULJKW ZLWK HPSOR\HHV RI WKHP DUH IURP ,UHODQG $PHULFD RU RQH RI D GR]HQ RWKHU QDWLRQV WKH UHVW DUH &KLQHVH DQG VDOHV ODVW \HDU RI DERXW PLOOLRQ +H LV RI PHGLXP KHLJKW DQG ILW VHHPLQJ LQ D FRPSDFW ZD\ ZLWK WKLFN GDUN KDLU DQG D ORQJ IDFH WKDW JHQHUDOO\ KDV DQ LPSLVK H[SUHVVLRQ +H KDV D VWURQJ ,ULVK DFFHQW DQG GUHVVHV LQIRUPDOO\ +H ZDONV WDONV DQG PRYHV VR IDVW WKDW , ZDV JHQHUDOO\ VFUDPEOLQJ WR NHHS XS &DVH\ JUHZ XS RQ D IDUP RXWVLGH &RUN KDG QR IRUPDO HGXFDWLRQ DIWHU KLJK VFKRRO DQG ILUVW ZRUNHG DV D VDOHVPDQ LQ JDUPHQW VKRSV LQ &RUN DQG WKHQ 'XEOLQ +H JRW LQYROYHG LQ EX\LQJ JDUPHQWV IURP (XURSH ZLWK D IULHQG VHW XS D &UDWH %DUUHO±VW\OH VWRUH LQ ,UHODQG WKHQ GHFLGHG WR WUDYHO $W DJH KH DUULYHG LQ 6RXWKHUQ &DOLIRUQLD DQG ZRUNHG EULHIO\ IRU D WUDGLQJ FRPSDQ\ +H VD\V KH ZRXOG EH LQ $PHULFD VWLOO²³/DJXQD 1HZSRUW %HDFK DK , OXYYHG LW´²EXW KH FRXOG QRW JHW D JUHHQ FDUG RU ORQJ WHUP ZRUN SHUPLW DQG GLGQ¶W ZDQW WR WU\ WR VWD\ WKHUH XQGHU WKH UDGDU , PLJKW DV ZHOO VD\ WKLV LQ HYHU\ DUWLFOH , ZULWH IURP RYHUVHDV 7KH HDVLHU $PHULFD PDNHV LW IRU WDOHQWHG IRUHLJQHUV WR ZRUN DQG VWXG\ WKHUH WKH ULFKHU PRUH SRZHUIXO DQG PRUH UHVSHFWHG $PHULFD ZLOO EH $PHULFD¶V DELOLW\ WR DEVRUE WKH ZRUOG¶V WDOHQW LV WKH FUXFLDO DGYDQWDJH QR RWKHU FXOWXUH FDQ PDWFK²DV ORQJ DV $PHULFD GRHVQ¶W IRUIHLW WKLV DGYDQWDJH ZLWK YLVD UXOHV ZULWWHQ PDLQO\ RXW RI IHDU
6R LQ MXVW DIWHU KH WXUQHG &DVH\ ZHQW WR 7DLSHL IRU DQ HOHFWURQLFV WUDGH VKRZ ,W ZDV KLV ILUVW WULS WR $VLD DQG KH VD\V ³, FRXOG VHH WKLV LV ZKHUH WKH RSSRUWXQLW\ ZDV ´ :LWKLQ D \HDU KH KDG VHW XS RSHUDWLRQV LQ WKH 6KHQ]KHQ DUHD DQG VWDUWHG WKH FRPSDQ\ QRZ NQRZQ DV 3&+ &KLQD 6ROXWLRQV 7KH LQLWLDOV VWDQG IRU 3DFLILF &RDVW +LJKZD\ LQ KRQRU RI KLV KDSS\ 6RXWKHUQ &DOLIRUQLD GD\V :KDW GRHV WKLV FRPSDQ\ GR" 7KH VKRUW DQVZHU LV RXWVRXUFLQJ ZKLFK LQ HIIHFW PHDQV PDWFKLQJ IRUHLJQ FRPSDQLHV WKDW ZDQW WR VHOO SURGXFWV ZLWK &KLQHVH VXSSOLHUV ZKR FDQ PDNH WKRVH SURGXFWV IRU WKHP &DVH\ GHVFULEHV KLV PLVVLRQ DV ³KHOSLQJ LQQRYDWRUV OHYHUDJH WKH PDQXIDFWXULQJ VXSSO\ FKDLQ KHUH LQ &KLQD ´ 7R VHH KRZ WKLV ZRUNV FRQVLGHU WKH JUHDW KXPDQ IORZV WKDW QRZ FRQYHUJH LQ VRXWKHUQ &KLQD ZKLFK FRPSDQLHV OLNH &DVH\¶V KHOS PHGLDWH 2QH LV WKH HQRUPRXV IORZ RI SHRSOH PDLQO\ \RXQJ DQG XQVFKRROHG IURP &KLQD¶V IDUPV DQG YLOODJHV WR 6KHQ]KHQ DQG VLPLODU FLWLHV 6RPH DUULYH ZLWK D IDFWRU\ MRE DOUHDG\ DUUDQJHG E\ UHODWLYHV RU IL[HUV VRPH FRPH WR WKH FLWLHV DQG WKHQ ORRN IRU ZRUN ,Q WKH PRYLH YHUVLRQ RI %DO]DF DQG WKH /LWWOH &KLQHVH 6HDPVWUHVV WZR WHHQDJHG PHQ IURP WKH FLW\ EHIULHQG D \RXQJ ZRPDQ LQ WKH PRXQWDLQ YLOODJH ZKHUH WKH\ KDYH EHHQ VHQW IRU UXVWLFDWLRQ GXULQJ WKH &XOWXUDO 5HYROXWLRQ 2QH GD\ WKH \RXQJ ZRPDQ XQH[SHFWHGO\ OHDYHV 6KH KDV JRQH WR ³WU\ KHU OXFN LQ D ELJ FLW\ ´ KHU JUDQGIDWKHU WHOOV WKHP ³6KH VDLG VKH ZDQWHG D QHZ OLIH ´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
ZZZ WKHDWODQWLF FRP PDJD]LQH SULQW FKLQD PDNHV WKH ZRUOG WDNHV
&KLQD 0DNHV 7KH :RUOG 7DNHV 0DJD]LQH 7KH $WODQWLF
$W WKH HOHFWURQLFV DQG KRXVHKROG JRRGV IDFWRULHV LQFOXGLQJ PDQ\ ,¶YH VHHQ WKH SD\ LV EHWZHHQ DQG 50% SHU PRQWK RU DERXW WR ,Q WKH YLOODJHV WKH ZRUNHUV OHIW D IDUP IDPLO\¶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
:25.(56 DW DQ ,QYHQWHF IDFWRU\ LQ 6KDQJKDL FKHFN FRPSXWHU PRWKHUERDUGV $ IDFWRU\ ZRUN VKLIW LV W\SLFDOO\ KRXUV XVXDOO\ ZLWK WZR EUHDNV IRU PHDOV VXEVLGL]HG RU IUHH VL[ RU VHYHQ GD\V SHU ZHHN :KHQHYHU WKH DFWLRQ OHWV XS²LI WKH DVVHPEO\ OLQH LV GRZQ IRU VRPH UHDVRQ LI D ZRUNHU KDV VSDUH WLPH DW D PHDO EUHDN²PDQ\ SHRSOH SODFH WKHLU KHDGV GRZQ RQ WKH WDEOH LQ IURQW RI WKHP DQG DSSHDU WR IDOO DVOHHS LQVWDQWO\ &KLQHVH ODZ VD\V WKDW WKH VWDQGDUG ZRUNZHHN LV KRXUV VR WKLV PHDQV D ORW RI RYHUWLPH ZKLFK LV LQFOXGHG LQ WKH SD\ UDWHV DERYH 6LQFH WKHLU KRPH YLOODJH PD\ EH VHYHUDO GD\V¶ WUDYHO E\ WUDLQ DQG EXV ZRUNHUV IURP WKH KLQWHUODQG XVXDOO\ JR EDFN RQO\ RQFH D \HDU 7KH\ DOO JR DW WKH VDPH WLPH²GXULQJ WKH ³6SULQJ )HVWLYDO ´ RU &KLQHVH 1HZ <HDU ZKHQ SRUWV DQG IDFWRULHV HIIHFWLYHO\ FORVH IRU D ZHHN RU VR DQG WKH QDWLRQ¶V WUDQVSRUW V\VWHP LV FKRNHG ³7KH SHRSOH KHUH ZRUN KDUG ´ DQ $PHULFDQ PDQDJHU LQ D 8 6 RZQHG SODQW WROG PH ³7KH\¶UH \RXQJ 7KH\¶UH TXLFN 7KHUH¶V QRQH RI WKLV µ, KDYH WR JR SLFN XS WKH NLGV¶ QRQVHQVH \RX JHW LQ WKH 6WDWHV ´ $W HYHU\ HOHFWURQLFV IDFWRU\ ,¶YH VHHQ HDFK SHUVRQ RQ DQ DVVHPEO\ OLQH KDV D EXQFK RI GRFXPHQWV SRVWHG E\ KHU ZRUNVWDWLRQ KHU SKRWR QDPH DQG HPSOR\HH QXPEHU RIWHQ WKH LQVWUXFWLRQV VKH LV WR IROORZ LQ ERWK (QJOLVK DQG &KLQHVH 2IWHQ WRR WKHUH¶V D YLVLEOH VLJQ RI KRZ ZHOO VKH¶V GRLQJ )RU WKH SURGXFWLRQ OLQH DV D ZKROH WKHUH DUH KRXUO\ WRWDOV RI WDUJHW DQG DFWXDO SURGXFWLRQ SOXV DOORZDEOH DQG DFWXDO GHIHFW OHYHOV $W VHYHUDO 7DLZDQHVH RZQHG IDFWRULHV ,¶YH VHHQ WKH LQGLFDWRU RI LQGLYLGXDO SHUIRUPDQFH LV D FKLOGLVK RXWOLQH GUDZLQJ RI D WUHH ZLWK OHDYHV $IWHU HDFK GD\¶V VKLIW RQH RI WKH WUHH¶V
ZZZ WKHDWODQWLF FRP PDJD]LQH SULQW FKLQD PDNHV WKH ZRUOG WDNHV
&KLQD 0DNHV 7KH :RUOG 7DNHV 0DJD]LQH 7KH $WODQWLF
OHDYHV LV ILOOHG LQ ZLWK D FRORUHG PDUNHU HLWKHU UHG RU JUHHQ ,I WKH OHDI LV JUHHQ WKH ZRUNHU KDV PHW KHU TXRWD DQG FDXVHG QR SUREOHPV ,I LW¶V UHG D GHIHFW KDV EHHQ WUDFHG EDFN WR KHU ZRUNVWDWLRQ 2QH UHG OHDI SHU PRQWK LV ZLWKLQ WROHUDQFH WZR LV D SUREOHP $V LQ DOO SUHYLRXV JUHDW ZDYHV RI LQGXVWULDOL]DWLRQ PDQ\ SHRSOH HQG XS VWD\LQJ LQ WRZQ WKDW¶V ZK\ 6KHQ]KHQ KDV JURZQ VR ODUJH %XW PRUH WKDQ ZDV WKH FDVH GXULQJ $PHULFD¶V RU (QJODQG¶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²DQG IDWDO FRDO PLQH GLVDVWHUV DUH VR FRPPRQ WKDW WKH\ DUH UHSRUWHG DV LI WKH\ ZHUH WUDIILF GHDWKV %\ FRPSDULVRQ WKH OLJKW LQGXVWULHV WKDW W\SLI\ VRXWKHUQ &KLQD DUH WHGLRXV EXW OHVV RYHUWO\ KD]DUGRXV $V WKH IRUHPDQ RI D 7DLZDQHVH HOHFWURQLFV IDFWRU\ SXW LW WR PH ZKHQ , DVNHG KLP DERXW URXJK ZRUNLQJ FRQGLWLRQV ³+DYH \RX HYHU VHHQ D &KLQHVH IDUP"´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³, GRQ¶W OLNH LW KHUH ´ D &KLQHVH PDQDJHU RULJLQDOO\ IURP %HLMLQJ WROG PH WKUHH \HDUV LQWR D ZRUN DVVLJQPHQW WR 6KHQ]KHQ ³7KHUH DUH QR URRWV RU FXOWXUH ´ ³)RU WKH ILUVW IHZ ZHHNV , ZDV KHUH , WKRXJKW LW ZDV VRXOOHVV ´ /LDP &DVH\ VD\V RI WKH WRZQ WKDW KDV EHHQ KLV KRPH IRU \HDUV ³%XW OLNH DQ\ IDVW PRYLQJ SODFH WKH DFWLYLW\ LV WKH FKDUDFWHU ,W¶V OLNH 1HZ <RUN <RX DUULYH DW WKH DLUSRUW DQG JR GRZQWRZQ DQG ZKHQ \RX JHW RXW RI WKDW FDE QR RQH NQRZV ZKHUH \RX FDPH IURP <RX FRXOG KDYH EHHQ WKHUH RQH KRXU \RX FRXOG KDYH EHHQ WKHUH \HDUV²QR RQH FDQ WHOO ,W¶V VLPLODU KHUH ZKLFK PDNHV LW H[FLWLQJ ´ &DVH\ WROG PH WKDW WR KLP 6KDQJKDL IHOW VORZ ³DQG PDGH IRU WRXULVWV ´ ,QGHHG , DP UHJXODUO\ VXUSULVHG WR ILQG WKDW SHRSOH VWUROO UDWKHU WKDQ VWULGH DORQJ WKH VLGHZDONV RI 6KDQJKDL ,W¶V D EXV\ FLW\ ZLWK VORZ SHGHVWULDQV 2U PD\EH &DVH\¶V RXWORRN LV FRQWDJLRXV $QRWKHU JUHDW IORZ LQWR 6KHQ]KHQ DQG VLPLODU FLWLHV LV RI HQWUHSUHQHXUV ZKR KDYH FRPH DQG VHW XS IDFWRULHV 7KH SRLQW RI WKH 6KHQ]KHQ OLEHUDOL]DWLRQV ZDV OHVV WR IRVWHU DQ\ RQH LQGXVWU\ WKDQ WR PDNH LW HDV\ IRU EXVLQHVVHV LQ JHQHUDO WR JHW D VWDUW 0DQ\ HQWUHSUHQHXUV DWWUDFWHG E\ WKH RIIHU FDPH IURP 7DLZDQ ZKRVH HFRQRP\ LV FKDUDFWHUL]HG E\ VPDOO PDLQO\ IDPLO\ RZQHG ILUPV OLNH WKRVH WKDW QRZ DERXQG LQ VRXWKHUQ &KLQD 2YHUDOO PDLQODQG &KLQD¶V GHYHORSPHQW PRGHO LV FORVHU WR 7DLZDQ¶V WKDQ WR -DSDQ¶V RU .RUHD¶V ,Q DOO WKHVH FRXQWULHV DQG WKURXJKRXW (DVW $VLD JRYHUQPHQWV XVH PDQ\ WRROV WR PD[LPL]H LQGXVWULDO RXWSXW WD[ SROLF\ WUDGLQJ
ZZZ WKHDWODQWLF FRP PDJD]LQH SULQW FKLQD PDNHV WKH ZRUOG WDNHV
&KLQD 0DNHV 7KH :RUOG 7DNHV 0DJD]LQH 7KH $WODQWLF
UXOHV FXUUHQF\ YDOXHV DQG VR RQ %XW -DSDQHVH DQG .RUHDQ SROLF\ KDV WHQGHG WR HPSKDVL]H WKH ZHOIDUH RI ODUJH QDWLRQDO FKDPSLRQ ILUPV²0LWVXELVKL DQG 7R\RWD /XFN\ *ROG 6WDU DQG 6DPVXQJ² ZKHUHDV 7DLZDQ¶V H[SRUWHUV KDYH EHHQ WKRXVDQGV RI VPDOO ILUPV D IHZ RI ZKLFK JUHZ ODUJH &KLQD LV RI FRXUVH YDVWHU WKDQ WKH RWKHU FRXQWULHV FRPELQHG EXW LWV H[SRUW RULHQWHG FRPSDQLHV DUH VPDOO 2QH UHDVRQ IRU WKH DWRPL]DWLRQ LV SHUYDVLYH PLVWUXVW DQG FRUUXSWLRQ SOXV D VKDN\ UXOH RI ODZ (YHQ )R[FRQQ &KLQD¶V ODUJHVW H[SRUWHU ZDV RQO\ 1R RQ ODVW \HDU¶V )RUWXQH *OREDO OLVW RI WKH ELJJHVW FRPSDQLHV LQ WKH ZRUOG :KHQ IRUHLJQHUV KDYH WURXEOH HQWHULQJ WKH -DSDQHVH RU .RUHDQ PDUNHWV LW LV RIWHQ EHFDXVH WKH\ UXQ XS DJDLQVW EDUULHUV SURWHFWLQJ ELJ ZHOO NQRZQ ORFDO LQWHUHVWV 7KH SUREOHP LQ &KLQD LV W\SLFDOO\ WKH RSSRVLWH )RUHLJQHUV GRQ¶W NQRZ ZKHUH WR VWDUW RU ZKRP WR GHDO ZLWK LQ WKH FKDRV RI VPDOO LQGLVWLQJXLVKDEOH ILUPV )RU PH WKH IUDJPHQWHG QDWXUH RI WKH &KLQHVH V\VWHP LV V\PEROL]HG E\ \HW DQRWKHU RI WKH VWXQQLQJ VLJKWV LQ 6KHQ]KHQ WKH 6(* (OHFWURQLFV 0DUNHW D VHYHQ VWRU\ GRZQWRZQ VWUXFWXUH ZKRVH HYHU\ LQFK LV FUDPPHG ZLWK WKH VDOHV ERRWKV RI KXQGUHGV RI PRP DQG SRS HOHFWURQLFV GHDOHUV ³&KLSV WKDW , FRXOGQ¶W GUHDP RI EX\LQJ LQ WKH 8 6 UHHOV RI UDUH FHUDPLF FDSDFLWRUV WKDW , RQO\ GUHDP DERXW DW QLJKW ´ $QGUHZ ³%XQQLH´ +XDQJ D &KLQHVH $PHULFDQ HOHFWURQLFV 3K ' IURP 0,7 ZURWH LQ KLV EORJ DIWHU D YLVLW ³0\ VHQVHV WLQJOH P\ KHDG VSLQV , FDQ¶W VXSSUHVV D VPLUN RI DQWLFLSDWLRQ DV , ZDON DURXQG WKH QH[W FRUQHU WR VHH VKRSV VWDFNHG IORRU WR FHLOLQJ ZLWK SUREDEO\ D KXQGUHG PLOOLRQ UHVLVWRUV DQG FDSDFLWRUV ´ $V KH QRWHG ³ZLWKLQ DQ KRXU¶V GULYH QRUWK´ ZHUH KXQGUHGV RI IDFWRULHV WKDW FRXOG ³WDNH DQ\ HOHFWURQLFV LGHDV DQG SXPS WKHP RXW E\ WKH OLWHUDO ERDWORDG ´ 7KH PDUNHW LV SDUW SHUPDQHQW WUDGH VKRZ SDUW VXSSO\ VWRS IRU SHRSOH ZKR VXGGHQO\ QHHG VRPH FDSDFLWRUV RU FRQQHFWRUV IRU D SURWRW\SH RU ODVW PLQXWH SURMHFW SDUW VZDS PHHW ZKHUH WUDGHUV XQORDG VXUSOXV FRPSRQHQWV
ZZZ WKHDWODQWLF FRP PDJD]LQH SULQW FKLQD PDNHV WKH ZRUOG WDNHV
&KLQD 0DNHV 7KH :RUOG 7DNHV 0DJD]LQH 7KH $WODQWLF
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³1LNH SUREOHP ´ 7KLV LV WKH EX\HUV¶ ZLVK WR PLQLPL]H WKHLU EUDQGV¶ DVVRFLDWLRQ ZLWK RXWVRXUFLQJ LQ JHQHUDO DQG $VLDQ VZHDWVKRSV LQ SDUWLFXODU QDPHG IRU 1LNH¶V 35 SUREOHPV EHFDXVH RI LWV IDFWRULHV LQ ,QGRQHVLD %\ &KLQHVH VWDQGDUGV WKH PRVW VXFFHVVIXO H[SRUWLQJ IDFWRULHV DUH WRXJK UDWKHU WKDQ DEXVLYH EXW WKRVH DUH QRW WKH VWDQGDUGV :HVWHUQ FXVWRPHUV PLJKW DSSO\ 7KH KLJK URDG UHDVRQ LQYROYHV WKH FUXFLDO RSHUDWLRQDO LPSRUWDQFH RI WKH ³VXSSO\ FKDLQ ´ ,W LV QRW HDV\ WR ILQG WKH ULJKW IDFWRU\ ZRUN RXW WKH ULJKW PDQXIDFWXULQJ V\VWHP HQVXUH WKH ULJKW VXSSO\ RI SDUWV DQG UDZ PDWHULDO LPSRVH WKH ULJKW TXDOLW\ VWDQGDUGV DQG GHYHORS WKH ULJKW UHODWLRQVKLS RI WUXVW DQG UHOLDELOLW\ &RPSDQLHV WKDW KDYH VROYHG WKHVH SUREOHPV GRQ¶W ZDQW WR WHOO WKHLU FRPSHWLWRUV KRZ WKH\ GLG VR ³6XSSO\ FKDLQ LV LQWHOOHFWXDO SURSHUW\ ´ LV WKH ZD\ /LDP &DVH\ SXW LW $VNLQJ D :HVWHUQ FRPSDQ\ WR VSHFLI\ LWV &KLQHVH VXSSOLHUV LV OLNH DVNLQJ D UHSRUWHU WR KDQG RYHU D OLVW RI KLV EHVW VRXUFHV %HFDXVH NHHSLQJ WKH VXSSO\ FKDLQ FRQILGHQWLDO LV VR LPSRUWDQW WR EX\HUV WKH\ WU\ WR LPSRVH FRQILGHQWLDOLW\ RQ WKHLU VXSSOLHUV :KHQ DQ RXWVLGH FRPSDQ\¶V UHSXWDWLRQ IRU GHVLJQ DQG TXDOLW\ LV VWURQJ²6RQ\ %UDXQ $SSOH²PDQ\ &KLQHVH FRQWUDFWRUV OLNH WR GURS KLQWV WKDW WKH\ DUH SDUW RI LWV VXSSO\ FKDLQ %XW WKH RQHV ZKR UHDOO\ DUH SDUW RI LW PXVW EH PRUH GLVFUHHW LI WKH\ ZDQW WR UHWDLQ WKH EX\LQJ FRPSDQ\¶V WUXVW DQG EXVLQHVV 6R , ZLOO ZLWKKROG GHWDLOV EXW DVN \RX WR WDNH WKLV OHDS ,I \RX WKLQN RI PDMRU 8 6 RU (XURSHDQ EUDQG QDPHV LQ WKH IROORZLQJ EXVLQHVVHV RGGV DUH WKHLU SURGXFWV FRPH IURP IDFWRULHV OLNH WKRVH ,¶P DERXW WR GHVFULEH 7KH EXVLQHVVHV DUH FRPSXWHUV LQFOXGLQJ GHVNWRSV ODSWRSV DQG VHUYHUV WHOHFRP HTXLSPHQW IURP URXWHUV WR PRELOH SKRQHV DXGLR HTXLSPHQW LQFOXGLQJ DQ\WKLQJ 03 UHODWHG KRPH VWHUHR V\VWHPV PRVW SRUWDEOH GHYLFHV DQG KHDGVHWV YLGHR HTXLSPHQW RI DOO VRUWV IURP FDPHUDV DQG FDPFRUGHUV WR UHSOD\ GHYLFHV SHUVRQDO FDUH LWHPV DQG KLJK HQG VSHFLDOW\ FDWDORJ JRRGV PHGLFDO GHYLFHV VSRUWLQJ JRRGV DQG H[HUFLVH HTXLSPHQW DQ\ NLQG RI HOHFWURQLF JRRGV RU DFFHVVRULHV DQG IRU
ZZZ WKHDWODQWLF FRP PDJD]LQH SULQW FKLQD PDNHV WKH ZRUOG WDNHV
&KLQD 0DNHV 7KH :RUOG 7DNHV 0DJD]LQH 7KH $WODQWLF
WKDW PDWWHU MXVW DERXW DQ\WKLQJ HOVH \RX FDQ WKLQN RI 6RPH RI WKH H[DPSOHV ,¶OO JLYH FRPH IURP VLWHV LQ 6KHQ]KHQ EXW RWKHUV DUH IURP IDFLOLWLHV QHDU 6KDQJKDL +DQJ]KRX *XDQJ]KRX ;LDPHQ DQG HOVHZKHUH :K\ GRHV D IRUHLJQ FRPSDQ\ FRPH WR RXU 0U &KLQD" , DVNHG &DVH\ ZKDW KH ZRXOG WHOO PH LI , ZHUH LQ VD\ VRPH EUDQFK RI WKH VWHHO LQGXVWU\ LQ 3LWWVEXUJK DQG ZDV ORRNLQJ WR FXW FRVWV ³1RW LQWHUHVWHG ´ KH VDLG ³7KH SURGXFW¶V WRR KHDY\ DQG \RX¶YH SUREDEO\ DOUHDG\ DXWRPDWHG WKH SURFHVV VR RQH SHUVRQ LV SXVKLQJ D EXWWRQ ,W ZRXOG FRVW \RX DOPRVW DV PXFK WR KDYH VRPHRQH SXVK WKH EXWWRQ LQ &KLQD ´ %XW ZKDW LV RI LQWHQVH LQWHUHVW WR KLP KH VDLG LV D FRPSDQ\ WKDW KDV EXLOW XS D EUDQG QDPH DQG UHODWLRQVKLSV ZLWK UHWDLOHUV DQG NQRZV ZKDW LW ZDQWV WR SURPRWH DQG VHOO QH[W²DQG QHHGV WR VDYH WLPH DQG PRQH\ LQ PDQXIDFWXULQJ D SURGXFW WKDW UHTXLUHV D IDLU DPRXQW RI DVVHPEO\ ³7KDW LV ZKHUH ZH FDQ KHOS EHFDXVH \RX ZLOO FRPH KHUH DQG VHH IDFWRULHV WKDW DUH EHWWHU WKDQ WKH RQHV \RX¶YH EHHQ ZRUNLQJ ZLWK LQ $PHULFD RU *HUPDQ\ ´ +HUH DUH D IHZ H[DPSOHV DOO EDVHG RQ UHDO ZRUOG FDVHV <RX KDYH DQQRXQFHG D PDMRU QHZ SURGXFW ZKLFK KDV JRWWHQ JUHDW EX]] LQ WKH SUHVV %XW FORVH WR UHOHDVH WLPH \RX GLVFRYHU D GHVLJQ SUREOHP WKDW PXVW EH IL[HG²DQG QR 8 6 IDFWRU\ FDQ DGMXVW LWV SURGXFWLRQ SURFHVV LQ WLPH 7KH &KLQHVH IDFWRULHV FDQ UHVSRQG PRUH TXLFNO\ DQG QRW VLPSO\ EHFDXVH RI KRXU ZRUNGD\V ³$Q\SODFH HOVH \RX¶G KDYH WR LPSRUW GLIIHUHQW UDZ PDWHULDOV DQG FRPSRQHQWV ´ &DVH\ WROG PH ³+HUH \RX¶YH JRW QLQH GLIIHUHQW VXSSOLHUV ZLWKLQ D PLOH DQG WKH\ FDQ EULQJ D VDPSOH RYHU WKDW DIWHUQRRQ 3HRSOH WKLQN &KLQD LV FKHDS EXW UHDOO\ LW¶V IDVW ´ 0RUHRYHU WKH &KLQHVH IDFWRULHV XVH PRUH KXPDQ ODERU DQG IHZHU H[SHQVLYH URERWV RU DVVHPEO\ PDFKLQHV WKDQ WKHLU FRXQWHUSDUWV LQ ULFK FRXQWULHV ³3HRSOH DUH WKH PRVW DGDSWDEOH PDFKLQHV ´ DQ $PHULFDQ LQGXVWULDO GHVLJQHU ZKR ZRUNV LQ &KLQD WROG PH ³0DFKLQHV QHHG WR EH UHSURJUDPPHG <RX FDQ KDYH SHRSOH GRLQJ VRPHWKLQJ HQWLUHO\ GLIIHUHQW QH[W ZHHN ´
&+,3 5(6,67256 GLVSOD\HG LQ PDUWLQL JODVVHV DW D ERRWK LQVLGH WKH 6(* (OHFWURQLFV 0DUNHW LQ 6KHQ]KHQ 2U <RX DUH DQ $PHULFDQ LQYHQWRU ZLWK D SURGXFW \RX WKLQN KDV ³JUHHQ´ SRWHQWLDO IRU KRXVHKROG
ZZZ WKHDWODQWLF FRP PDJD]LQH SULQW FKLQD PDNHV WKH ZRUOG WDNHV
&KLQD 0DNHV 7KH :RUOG 7DNHV 0DJD]LQH 7KH $WODQWLF
HQHUJ\ VDYLQJV %XW \RX QHHG WR JHW LW WR PDUNHW IDVW EHFDXVH \RX WKLQN ELJ FRPSDQLHV PD\ EH WU\LQJ WKH VDPH WKLQJ DQG \RX QHHG WR PHHW D WDUJHW UHWDLO SULFH RI ³1R SODFH EXW &KLQD WR GR WKLV ´ 0U &KLQD VDLG DV KH VKRZHG PH WKH ILQLVKHG SURGXFW 2U <RX DUH D YHU\ IDPRXV $PHULFDQ FRPSDQ\ DQG \RX ZRUU\ WKDW \RX¶YH WLHG XS WRR PXFK FDSLWDO NHHSLQJ LQYHQWRU\ IRU UHWDLO VWRUHV DW VHYHUDO VXSSO\ GHSRWV LQ $PHULFD :LWK 0U &KLQD¶V KHOS \RX VWDUW HPSKDVL]LQJ GLUHFW UHWDLO VDOHV RQ \RXU :HE VLWH²DQG GR DOO WKH VKLSSLQJ DQG IXOILOOPHQW IURP RQH VXSSO\ GHSRW UXQ E\ \RXQJ &KLQHVH ZRPHQ LQ 6KHQ]KHQ ZKR FDQ VKLS GLUHFWO\ WR VSHFLILF UHWDLO VWRUHV 2YHU WKH FRXUVH RI UHSHDWHG YLVLWV WR 6KHQ]KHQ²WKH EUHDNIDVWV ²DQG YLVLWV WR RWKHU PDQXIDFWXULQJ UHJLRQV , KHDUG DERXW PDQ\ VLPLODU FDVHV DQG VDZ VRPH RI WKH WRROV WKDW KDYH PDGH LW SRVVLEOH IRU :HVWHUQ FRXQWULHV WR YLHZ &KLQD DV WKHLU PDQXIDFWXULQJ KHDUWODQG 6RPH LQYROYH FRPSXWHUL]HG NQRZOHGJH &DVH\¶V 3&+ KDV D *RRJOH (DUWK±OLNH V\VWHP WKDW LQFRUSRUDWHV ZKDW KH KDV OHDUQHG LQ \HDUV RI GHDOLQJ ZLWK &KLQHVH VXEFRQWUDFWRUV <RX QDPH D SURGXFW \RX ZDQW WR PDNH²VD\ D QHZ FDVH RU KHDGVHW IRU D PRELOH SKRQH &DVH\ FOLFNV RQ WKH PDS DQG VKRZV WKH FRPSDQLHV WKDW FDQ SURGXFH WKH QHFHVVDU\ FRPSRQHQWV²DQG H[DFWO\ KRZ IDU WKH\ DUH IURP HDFK RWKHU LQ WUDYHO WLPH 7KLV LV KDUG ZRQ NQRZOHGJH LQ DQ DUHD ZKHUH FLW\ PDSV DUH RXW RI GDWH DV VRRQ DV WKH\ DUH SXEOLVKHG DQG DGGUHVVHV DUH DSSUR[LPDWH &DVH\¶V DUH NH\HG LQ ZLWK *36 FRRUGLQDWHV GLVFUHHWO\ UHDG IURP KLV *36 HTXLSSHG PRELOH SKRQH ZKHQ KH YLVLWV HDFK IDFWRU\ ,I D IDFWRU\ ORRNV SURPLVLQJ \RX FOLFN DJDLQ DQG JHW LQWHULRU DQG H[WHULRU SKRWRV D UXQGRZQ RQ WKH PDQDJHPHQW LQ VRPH FDVHV YLGHRV RI WKH DVVHPEO\ OLQH LQ DFWLRQ SOXV VSHF VKHHWV DQG HQJLQHHULQJ GUDZLQJV IRU RUGHUV WKH\ KDYH DOUHDG\ ILOOHG 6LPLODU SURJUDPV DOORZ &DVH\ DQG KLV FOLHQWV WR VHH ZKLFK VKLS SODQH RU WUXFN WKHLU SURGXFWV DUH RQ DQ\ZKHUH LQ WKH ZRUOG DQG WKH DPRXQW RI VWRFN RQ KDQG LQ DQ\ ZDUHKRXVH RU GHSRW +RZ GR WKH\ NQRZ" (DFK ILQLVKHG SLHFH DQG DOPRVW HYHU\ FRPSRQHQW KDV DQ LQGLYLGXDO EDU FRGH WKDW LV VFDQQHG SUDFWLFDOO\ HYHU\ WLPH LW LV WRXFKHG
7KH IDFWRULHV ZKRVH ZRUNIORZ &DVH\ PRQLWRUV YDU\ WUHPHQGRXVO\ WKRXJK QRW LQ WKHLU ORRNV ,¶YH FRPH WR WKLQN WKDW WKHUH LV RQO\ RQH VHW RI EOXHSULQWV IRU IDFWRULHV LQ &KLQD D ELJ ER[\ ZDUHKRXVH ORRNLQJ VWUXFWXUH XVXDOO\ PDGH RI FRQFUHWH DQG XVXDOO\ ILYH VWRULHV ZKLWH RU JUD\ RXWVLGH UHODWLYHO\ ODUJH ZLQGRZV ZKLFK LV KRZ \RX FDQ WHOO LW IURP WKH ZRUNHUV¶ GRUPLWRULHV KLJK FHLOLQJV WR DFFRPPRGDWH PDFKLQHV %XW LQVLGH VRPH DUH KLJKO\ DXWRPDWHG ZKLOH VRPH DUH DPD]LQJO\ UHOLDQW RQ KDQG ODERU ,¶P QRW HYHQ VSHDNLQJ RI WKH EDG GDQJHURXV DQG RXW RI GDWH IDFWRULHV IUHTXHQWO\ IRXQG LQ WKH QRUWK RI &KLQD ZKHUH OHIWRYHU 0DRLVW HUD KHDY\ LQGXVWU\ KXONV DERXQG (YHQ VRPH QHZO\ EXLOW IDFLOLWLHV OHDYH WR KXPDQ KDQGV ZRUN WKDW KDV EHHQ GRQH LQ WKH :HVW IRU PDQ\ GHFDGHV E\ PDFKLQHV ,PDJLQH RSHQLQJ D FRQVXPHU SURGXFW²D PRELOH SKRQH DQ HOHFWULF WRRWKEUXVK D ZLUHOHVV URXWHU²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
ZZZ WKHDWODQWLF FRP PDJD]LQH SULQW FKLQD PDNHV WKH ZRUOG WDNHV
&KLQD 0DNHV 7KH :RUOG 7DNHV 0DJD]LQH 7KH $WODQWLF
$SSOH 1(& *DWHZD\ 7RVKLED $OPRVW QR RQH KDV KHDUG RI 4XDQWD &RPSDO ,QYHQWHF :LVWURQ $VXVWHN <HW QHDUO\ SHUFHQW RI ODSWRSV DQG QRWHERRNV VROG XQGHU WKH IDPRXV EUDQG QDPHV DUH DFWXDOO\ PDGH E\ RQH RI WKHVH ILYH FRPSDQLHV LQ WKHLU IDFWRULHV LQ PDLQODQG &KLQD , KDYH VHHQ D IDFWRU\ ZLWK WKUHH ³FRPSHWLQJ´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¶V URXJK FRXQWHUSDUW WR WKH )RUG 0RWRU &RPSDQ\¶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³FKHFN ZHLJKHG´ WR VHH WKDW LWV QHZ ZHLJKW LV FRUUHFW +XQGUHGV RI WLQ\ WUDQVLVWRUV FKLSV DQG RWKHU HOHFWURQLF SDUWV DUH DWWDFKHG WR HDFK FLUFXLW ERDUG E\ ³SLFN DQG SODFH´ URERWV ZKRVH PXOWLSOH DUPV PRYH DOPRVW WRR IDVW WR IROORZ 7KH ZHOGV RQ WKH ERDUG DUH VFDQQHG ZLWK ODVHUV IRU GHIHFWV $Q\ ZLWK SUREOHPV DUH VHW DVLGH IRU ZRPHQ VSHFLDOLVWV ORRNLQJ WKURXJK KXJH PDJQLI\LQJ JODVVHV WR UHZHOG :K\ GLG WKLV IDFWRU\ LQYHVW VR PXFK LQ URERWV DQG PDFKLQH WRROV" , DVNHG D VXSHUYLVRU IURP 7DLZDQ ³3HRSOH FDQ¶W GR LW SUHFLVHO\ HQRXJK ´ ZDV KLV DQVZHU 7KHVH IDFWRULHV DXWRPDWH QRW ZKDW¶V WRR H[SHQVLYH EXW ZKDW¶V WRR GHOLFDWH IRU KXPDQ EHLQJV WR SHUIRUP 0DQ\ RI WKH QRWHERRN FRPSXWHUV KDYH EHHQ RUGHUHG RQOLQH DQG DV WKH\ QHDU FRPSOHWLRQ HDFK LV ³IODYRUHG´ IRU LWV GHVWLQDWLRQ 7KH GD\ , YLVLWHG RQH ZDV JRLQJ WR 7RN\R ZLWK D -DSDQHVH NH\ERDUG LQVWDOOHG DQG -DSDQHVH ORJRV VQDSSHG LQWR WKH ULJKW SODFHV RQ WKH FDVH WKH QH[W RQH ZDV KHDGHG IRU WKH 8QLWHG 6WDWHV $IWHU GLVSOD\ VFUHHQV DUH LQVWDOOHG HDFK FRPSXWHU ULGHV RQ D NLQG RI UDFHWUDFN DORQJ WKH FHLOLQJ RI WKH IDFWRU\ ZKHUH LW UXQV IRU VHYHUDO KRXUV WR PDNH VXUH WKDW DOO FRPSRQHQWV ZRUN 7KHQ WKH FRQYH\HUV FDUU\ LW WR WKH ILQDO IODYRULQJ VWHS²WKH ³EXUQ LQ´ RI WKH RSHUDWLQJ V\VWHP ZKLFK RQ P\ YLVLW ZDV :LQGRZV 9LVWD LQ PDQ\ ODQJXDJHV 2QH HQJLQHHU SRLQWHG RXW WKDW EHFDXVH 9LVWD UHTXLUHV XS WR WLPHV DV PXFK GLVN VSDFH DV :LQGRZV ;3 WKH DVVHPEO\ OLQH KDG WR EH DOWHUHG WR DOORZ D PXFK ORQJHU VORZHU SDVVDJH WKURXJK WKH EXUQ LQ VWDWLRQ 7KH RWKHU IDFLOLW\ WKDW LQWULJXHG PH RQH RI /LDP &DVH\¶V LQ 6KHQ]KHQ KDQGOHG RQOLQH RUGHUV IRU D GLIIHUHQW ZHOO NQRZQ $PHULFDQ FRPSDQ\ , ZDV WKHUH DURXQG GDZQ ZKLFK ZDV FUXQFK WLPH %HFDXVH RI WKH KRXU WLPH GLIIHUHQFH IURP WKH 8 6 (DVW &RDVW RUGHUV $PHULFDQV SODFH LQ WKH ODWH DIWHUQRRQ DUULYH LQ &KLQD LQ WKH GHDG RI QLJKW $V , ZDWFKHG D FXVWRPHU LQ 3DODWLQH ,OOLQRLV SHUKDSV VKRSSLQJ
ZZZ WKHDWODQWLF FRP PDJD]LQH SULQW FKLQD PDNHV WKH ZRUOG WDNHV
&KLQD 0DNHV 7KH :RUOG 7DNHV 0DJD]LQH 7KH $WODQWLF
IURP KLV RIILFH FOLFNHG RQ WKH $PHULFDQ FRPSDQ\¶V :HE VLWH WR RUGHU WZR DFFHVVRULHV $ IHZ VHFRQGV ODWHU WKH RUGHU DSSHDUHG RQ WKH VFUHHQ PLOHV DZD\ LQ 6KHQ]KHQ ,W DXWRPDWLFDOO\ JHQHUDWHG D SDFNLQJ DQG DGGUHVV VOLS DQG VHYHUDO EDU FRGH ODEHOV 2QH \RXQJ ZRPDQ SXW WKH DGGUHVV ODEHO RQ D EURZQ FDUGERDUG VKLSSLQJ ER[ DQG WKH SDFNLQJ VOLS LQVLGH 7KH ER[ PRYHG GRZQ D FRQYH\HU EHOW WR DQRWKHU ZRPDQ ZRUNLQJ D ³SLFN WR OLJKW´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² D P &KLQD WLPH S P LQ 3DODWLQH S P RQ WKH 8 6 (DVW &RDVW²WKH YROXPH RI RUGHUV IURP $PHULFD ZDV WDSHULQJ RII 0RUH LPSRUWDQW WKH )HG([ SLFNXS WLPH ZDV GUDZLQJ QHDU $W D P FRXULHUV ZRXOG DUULYH DQG UXVK WKH SDOOHWV WR WKH +RQJ .RQJ DLUSRUW 7KH )HG([ IOLJKW WR $QFKRUDJH ZRXOG OHDYH E\ S P DQG ZKHQ LW JRW WKHUH WKH JRRGV RQ WKLV FRPSDQ\¶V SDOOHWV ZRXOG EH FRPELQHG ZLWK RWKHU &KLQHVH H[SRUWV DQG UH VRUWHG IRU GHVWLQDWLRQV LQ $PHULFD )RUW\ HLJKW KRXUV DIWHU WKH PDQ LQ 3DODWLQH FOLFNHG ³%X\ LW QRZ ´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²DQG DV DQ LQIRUPDO XQLIRUP YLUWXDOO\ HYHU\ RQH ZRUH WLJKW ORZ ULVH EOXH MHDQV ZLWK HPEURLGHU\ RU VHTXLQV RQ WKH VHDPV 0RVW RI WKHP URGH WKHLU ELNHV EDFN WR WKH GRUPLWRU\ RWKHUV ZDONHG RU ZDONHG WKHLU ELNHV FKDWWLQJ ZLWK HDFK RWKHU 7KDW HYHQLQJ WKH\ ZRXOG EH EDFN DW ZRUN 0HDQZKLOH IORFNV RI UHG WRSSHG EOXH ERWWRPHG \RXQJ ZRPHQ RQ WKH GD\ VKLIW ILOOHG WKH URDG ULGLQJ WKHLU ELNHV LQ *RRG IRU 8V²)RU 1RZ :KDW VKRXOG ZH PDNH RI WKLV" 7KH HYLGHQFH VXJJHVWV ZKDW , KDGQ¶W H[SHFWHG WKDW WKH LQWHUDFWLRQ KDV EHHQ JRRG IRU PRVW SDUWLFLSDQWV²VR IDU +DV WKH IDFWRU\ ERRP EHHQ JRRG IRU &KLQD" 2I FRXUVH LW KDV <HV LW FUHDWHV HQYLURQPHQWDO SUHVVXUHV WKDW LI QRW FRQWUROOHG FRXOG SROOXWH &KLQD DQG WKH ZRUOG RXW RI H[LVWHQFH 7KH QDWLRQDO JRYHUQPHQW¶V FXUUHQW )LYH <HDU 3ODQ²WKH WK UXQQLQJ WKURXJK ²KDV DV LWV FHQWUDO WKHPH &KLQD¶V GHYHORSPHQW DV D ³KDUPRQLRXV VRFLHW\ ´ RU KH[LH VKHKXL D SKUDVH KHDUG DERXW DV RIWHQ IURP &KLQD¶V OHDGHUVKLS DV ³JOREDO ZDU RQ WHUURU´ KDV EHHQ KHDUG IURP $PHULFD¶V ,Q &KLQD WKH SKUDVH LV FRGH IRU DWWHPSWLQJ WR GHDO ZLWK LQFRPH LQHTXDOLWLHV HVSHFLDOO\ WKH KDUGVKLSV RI IDUPHUV DQG PLOOLRQV RI PLJUDQW ODERUHUV %XW LW LV DOVR FRGH IRU DW OHDVW WDONLQJ DERXW SURWHFWLQJ WKH HQYLURQPHQW $QG \HV WKURXJKRXW &KLQD¶V ERRP PDQ\ SHRSOH KDYH EHHQ PLVWUHDWHG RSSUHVVHG VRPHWLPHV ZRUNHG
ZZZ WKHDWODQWLF FRP PDJD]LQH SULQW FKLQD PDNHV WKH ZRUOG WDNHV
&KLQD 0DNHV 7KH :RUOG 7DNHV 0DJD]LQH 7KH $WODQWLF
WR GHDWK LQ IDFWRULHV (YHQ WKRVH QRW DEXVHG PD\ EH ORQHO\ DQG ORVW ZLWK GDPDJLQJ HIIHFWV RQ WKH FRXQWU\¶V VRFLDO IDEULF %XW WKLV ZDV DOVR WKH VWRU\ RI %ULWDLQ DQG $PHULFD ZKHQ WKH\ EXLOW WKHLU JUHDW LQGXVWULHV WKHLU JUHDW WXUEXOHQW LQGXVWULDO FLWLHV DQG XOWLPDWHO\ WKHLU JUHDW LQGXVWULDO PLGGOH FODVVHV )RU &KLQD LW LV IDU IURP WKH ZRUVW VRFLDO GLVUXSWLRQ WKH FRXQWU\ KDV HQGXUHG LQ WKH ODVW \HDUV $W OHDVW WKLV XSKHDYDO XQOLNH WKH GLVDVWURXV *UHDW /HDS )RUZDUG RI WKH V DQG &XOWXUDO 5HYROXWLRQ RI WKH ¶ V DQG HDUO\ ¶ V KDV VRPH EHQHILWV IRU LQGLYLGXDOV DQG WKH QDWLRQ 6RPH :HVWHUQHUV PD\ IHHO WKDW HYHQ WRGD\¶V ³QRUPDO´ &KLQHVH ZRUNLQJ FRQGLWLRQV DPRXQW WR VODYH ODERU² D PRQWK QR OLIH RXWVLGH WKH IDFWRU\ ZRUN VKLIWV VR ORQJ WKHUH¶V EDUHO\ WLPH WR GR PRUH WKDQ WU\ WR VOHHS LQ D MDP SDFNHG GRUPLWRU\ +HUH LV DQ XQFRPIRUWDEOH WUXWK ,¶P ZDLWLQJ IRU VRPH &KLQHVH RIILFLDO WR SRLQW RXW 7KH ZRPDQ IURP WKH KLQWHUODQG ZRUNLQJ LQ 6KHQ]KHQ LV DUJXDEO\ EHWWHU RII HFRQRPLFDOO\ WKDQ DQ $PHULFDQ LQ &KLFDJR OLYLQJ RQ PLQLPXP ZDJH 6KH FDQ VDYH PRVW RI ZKDW VKH PDNHV DQG IHHO VKH LV RQ WKH ZD\ XS WKH $PHULFDQ FDQ¶W DQG GRHVQ¶W 2YHU WKH QH[W WZR \HDUV WKH PLQLPXP ZDJH LQ WKH 8QLWHG 6WDWHV LV H[SHFWHG WR ULVH WR DQ KRXU $VVXPLQJ D KRXU ZHHN WKDW¶V MXVW XQGHU SHU PRQWK RU DERXW WLPHV WKH &KLQHVH IDFWRU\ ZDJH %XW WKDW¶V EHIRUH SD\UROO GHGXFWLRQV DQG WKH FRVW RI IRRG DQG KRXVLQJ ZKLFK DUH IUHH RU VXEVLGL]HG LQ &KLQD¶V IDFWRU\ WRZQV &KLQHVH VSRNHVPHQ GR PDNH D GLIIHUHQW SRLQW DERXW WKHLU HFRQRP\ DQG WKH\ UDWWOH LW RII VR IUHTXHQWO\ WKDW :HVWHUQ DXGLHQFHV DUH WHPSWHG WR GLVPLVV LW 7KH\ VD\ ³:KDWHYHU HOVH ZH KDYH GRQH ZH KDYH EURXJKW KXQGUHGV RI PLOOLRQV RI SHRSOH RXW RI SRYHUW\ ´ 7KDW LV WUXH LW LV LPSRUWDQW DQG WKH PDQXIDFWXULQJ H[SRUW ERRP KDV EHHQ D VLJQLILFDQW SDUW RI KRZ &KLQD KDV GRQH LW 7KLV HFRQRPLF VXFFHVV REYLRXVO\ GRHV QRW MXVWLI\ HYHU\WKLQJ WKH UHJLPH KDV GRQH HVSHFLDOO\ LWV FUXVKLQJ RI DQ\ FKDOOHQJH WR RQH SDUW\ UXOH %XW WKH PDJQLWXGH RI WKH DFKLHYHPHQW FDQ¶W EH LJQRUHG )RU DOO RI WKH ELOOLRQV RI GROODUV JLYHQ LQ IRUHLJQ DLG DQG VXSHUYLVHG E\ WKH :RUOG %DQN WKH JUHDWHVW JRRG IRU WKH JUHDWHVW QXPEHU RI WKH ZRUOG¶V SUHYLRXVO\ LPSRYHULVKHG SHRSOH LQ DW OHDVW WKH ODVW KDOI FHQWXU\ KDV EHHQ DFKLHYHG LQ &KLQD WKDQNV ODUJHO\ WR WKH RXWVRXUFLQJ ERRP +DV WKH PRYH WR &KLQD EHHQ JRRG IRU $PHULFDQ FRPSDQLHV" 7KH DQVZHU ZRXOG VHHPLQJO\ KDYH WR EH \HV²RWKHUZLVH ZK\ ZRXOG WKH\ JR WKHUH" ,W LV FRQFHLYDEOH WKDW EDG SDUWQHUVKLSV VWROHQ LQWHOOHFWXDO SURSHUW\ GLOXWLRQ RI EUDQG QDPH ORJLVWLFV QLJKWPDUHV RU RWKHU GLIILFXOWLHV KDYH JLYHQ PDQ\ FRPSDQLHV D VRXU YLHZ RI RXWVRXUFLQJ , KDYH KHDUG H[DPSOHV LQ HDFK FDWHJRU\ IURP IRUHLJQ H[HFXWLYHV %XW WKH PRUH LQWHUHVWLQJ WKHPH , KDYH KHDUG IURP WKHP ZKLFK H[SODLQV ZK\ WKH\ DUH ZLOOLQJ WR VXUPRXQW WKH LQFRQYHQLHQFHV LQYROYHV VRPHWKLQJ FDOOHG WKH ³VPLOH\ FXUYH ´ 7KH FXUYH LV QDPHG IRU WKH 8 VKDSHG DUF RI WKH V HUD VPLOH\ IDFH LFRQ DQG LW UXQV IURP WKH EHJLQQLQJ WR WKH HQG RI D SURGXFW¶V FUHDWLRQ DQG VDOH $W WKH EHJLQQLQJ LV WKH FRPSDQ\¶V EUDQG +3 6LHPHQV 'HOO 1RNLD $SSOH 1H[W FRPHV WKH LGHD IRU WKH SURGXFW DQ L3RG D QHZ FRPSXWHU D FDPHUD SKRQH $IWHU WKDW LV KLJK OHYHO LQGXVWULDO GHVLJQ²WKH FRQFHLYLQJ RI KRZ WKH SURGXFW ZLOO ORRN DQG ZRUN 7KHQ WKH GHWDLOHG HQJLQHHULQJ GHVLJQ IRU KRZ LW ZLOO EH PDGH 7KHQ WKH QHFHVVDU\ FRPSRQHQWV 7KHQ WKH DFWXDO PDQXIDFWXUH DQG DVVHPEO\ 7KHQ WKH VKLSSLQJ DQG GLVWULEXWLRQ 7KHQ UHWDLO VDOHV $QG ILQDOO\ VHUYLFH FRQWUDFWV DQG VDOHV RI SDUWV DQG DFFHVVRULHV 7KH VLJQLILFDQFH LV WKDW &KLQD¶V DFWLYLW\ LV LQ WKH PLGGOH VWDJHV²PDQXIDFWXULQJ SOXV VRPH FRPSRQHQW
ZZZ WKHDWODQWLF FRP PDJD]LQH SULQW FKLQD PDNHV WKH ZRUOG WDNHV
&KLQD 0DNHV 7KH :RUOG 7DNHV 0DJD]LQH 7KH $WODQWLF
VXSSO\ DQG HQJLQHHULQJ GHVLJQ²EXW $PHULFD¶V LV DW WKH WZR HQGV DQG WKRVH DUH ZKHUH WKH PRQH\ LV 7KH VPLOH\ FXUYH ZKLFK VKRZV WKH SURILWDELOLW\ RU YDOXH DGGHG DW HDFK VWDJH VWDUWV KLJK IRU EUDQGLQJ DQG SURGXFW FRQFHSW VZRRSV GRZQ IRU PDQXIDFWXULQJ DQG ULVHV DJDLQ LQ WKH UHWDLO DQG VHUYLFLQJ VWDJHV 7KH VLPSOH ZD\ WR SXW WKLV²WKDW WKH UHDO PRQH\ LV LQ EUDQG QDPH SOXV UHWDLO²PD\ VRXQG REYLRXV EXW LWV LPSOLFDWLRQV DUH LOOXPLQDWLQJ $W HDFK IDFWRU\ , YLVLWHG , DVNHG PDQDJHUV WR HVWLPDWH KRZ PXFK RI D SURGXFW¶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² WR SHUFHQW RI WKH WRWDO²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¶W FOHDU &KLQHVH ZRUNHUV PDNLQJ D \HDU KDYH EHHQ KHOSLQJ $PHULFDQ GHVLJQHUV PDUNHWHUV HQJLQHHUV DQG UHWDLOHUV PDNLQJ D ZHHN DQG XS HDUQ HYHQ PRUH 3OXV WKH\ KDYH KHOSHG VKDUHKROGHUV RI 8 6 EDVHG FRPSDQLHV $OO WKLV LV DSDUW IURP D SKHQRPHQRQ WKDW ZLOO EH WKH VXEMHFW RI D IXWXUH DUWLFOH &KLQD¶V FRQYHUVLRQ RI LWV WUDGH VXUSOXVHV LQWR D YDVW KRDUG RI GROODU GHQRPLQDWHG UHVHUYHV (YHU\RQH XQGHUVWDQGV WKDW LQ WKH VKRUW UXQ &KLQD¶V KDQGOLQJ RI LWV UHVHUYHV KDV EHHQ D FRQYHQLHQFH WR WKH 8QLWHG 6WDWHV %\ SODFLQJ PRUH WKDQ WULOOLRQ LQ 8 6 VWRFN DQG ERQG PDUNHWV LW KDV SURSSHG XS WKH 8 6 HFRQRP\ $VVHW SULFHV DUH KLJKHU WKDQ WKH\ ZRXOG RWKHUZLVH EH LQWHUHVW UDWHV DUH ORZHU ZKHWKHU IRU $PHULFDQ IDPLOLHV WDNLQJ RXW PRUWJDJHV RU IRU $PHULFDQ WD[SD\HUV ILQDQFLQJ WKH HYHU PRXQWLQJ IHGHUDO GHEW 7KH GROODU KDV DOVR IDOOHQ OHVV WKDQ LW RWKHUZLVH ZRXOG KDYH²ZKLFK LQ WKH VKRUW UXQ KHOSV $PHULFDQ FRQVXPHUV NHHS EX\LQJ &KLQHVH JRRGV
ZZZ WKHDWODQWLF FRP PDJD]LQH SULQW FKLQD PDNHV WKH ZRUOG WDNHV
&KLQD 0DNHV 7KH :RUOG 7DNHV 0DJD]LQH 7KH $WODQWLF
(YHU\RQH DOVR XQGHUVWDQGV WKDW LQ WKH ORQJ UXQ &KLQD PXVW FKDQJH WKLV SROLF\ ,WV RZQ SHRSOH QHHG WRR PDQ\ WKLQJV²VFKRROV KRVSLWDOV UDLOURDGV²IRU LW WR NHHS VHQGLQJ LWV SURILWV WR $PHULFD ,W ZRQ¶W IRUHYHU VLQN LWV VDYLQJV LQWR D FXUUHQF\ WKH GROODU YLUWXDOO\ JXDUDQWHHG WR NHHS IDOOLQJ DJDLQVW WKH 50% 7KLV \HDU WKH FHQWUDO JRYHUQPHQW FUHDWHG D FRPPLVVLRQ WR FRQVLGHU WKH ULJKW ORQJ WHUP XVH IRU &KLQD¶V UHVHUYHV 1R RQH H[SHFWV WKH UHFRPPHQGDWLRQ WR EH .HHS EX\LQJ GROODUV +RZ DQG ZKHQ WKH FKDQJH ZLOO RFFXU ZKDW LW ZLOO EH DQG ZKDW FRQVHTXHQFHV LW ZLOO KDYH LV ZKDW HYHU\RQH ZRXOG OLNH WR NQRZ 2QH RWKHU DVSHFW RI &KLQD¶V GHYHORSPHQW WR GDWH KDV KHOSHG $PHULFDQ FRPSDQLHV LQ WKHLU GHDOLQJV ZLWK LW 7KLV LV WKH IDFW WKDW &KLQD VR IDU KDV EHHQ GLIIHUHQW LQ FUXFLDO ZD\V IURP $PHULFD¶V SUHYLRXV JUHDW $VLDQ FKDOOHQJHU -DSDQ $PHULFDQV KDYH FRPH WR YLHZ WKH -DSDQHVH HFRQRP\ DV D NLQG RI MRNH PDLQO\ EHFDXVH WKH 7RN\R 6WRFN ([FKDQJH KDV EHHQ LQ D VOXPS IRU QHDUO\ \HDUV 1RQHWKHOHVV -DSDQ UHPDLQV WKH ZRUOG¶V VHFRQG ODUJHVW HFRQRP\ 7R\RWD KDV RYHUWDNHQ *HQHUDO 0RWRUV WR EHFRPH WKH ODUJHVW DXWRPDNHU -DSDQ¶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²ZKHWKHU WKRVH FRPSDQLHV ZHUH VHHQ DV VWRGJ\ DQG QRQLQQRYDWLYH OLNH WKH 'HWURLW ILUPV RU WHFKQRORJLFDOO\ DJLOH DQG DGYDQFHG OLNH WKH VHPLFRQGXFWRU PDNHUV )RU WKH PRPHQW &KLQD¶V VLWXDWLRQ LV GLIIHUHQW ,WV FRPSDQLHV DUH QXPHURXV EXW VPDOO /HQRYR DQG 4LQJGDR DUH LWV WZR JOREDOO\ UHFRJQL]HG EUDQG QDPHV %XW /HQRYR LV NQRZQ PDLQO\ EHFDXVH LW ERXJKW WKH 7KLQN3DG EUDQG IURP ,%0 DQG D TXDUWHU RI 4LQJGDR %HHU LV RZQHG E\ $QKHXVHU %XVFK &KLQHVH H[SRUWHUV KDYH GRQH EHVW ZKHQ ZRUNLQJ IRU UDWKHU WKDQ DJDLQVW :HVWHUQ FRPSDQLHV DV )R[FRQQ OLNH QXPHURXV VPDOOHU ILUPV KDV LQ ZRUNLQJ ZLWK $SSOH :KLOH WKH &KLQHVH JRYHUQPHQW REYLRXVO\ ZDQWV WR VWUHQJWKHQ WKH FRXQWU\¶V EUDQGV²IRU LQVWDQFH ZLWK DQ DLUFUDIW FRPSDQ\ LW KRSHV ZLOO FRPSHWH ZLWK %RHLQJ DQG $LUEXV²LWV ³LQGXVWULDO SODQQLQJ´ KDV PDLQO\ WDNHQ WKH IRUP QRW RI VSHFLILF WDUJHWLQJ EXW RI JHQHUDO EXVLQHVV SURPRWLRQ DV ZLWK WKH LQFHQWLYHV WKDW EURXJKW FRPSDQLHV WR 6KHQ]KHQ &KLQD¶V HFRQRP\ WHFKQLFDOO\ VWLOO VRFLDOLVW KDV DOVR EHHQ VWUDQJHO\ PRUH RSHQ WKDQ -DSDQ¶V 7KURXJK LWV ILUVW IRXU GHFDGHV RI JURZWK DIWHU :RUOG :DU ,, -DSDQ ZDV HVVHQWLDOO\ FORVHG WR IRUHLJQ RZQHUVKLS DQG LQYHVWPHQW 7H[DV ,QVWUXPHQWV DQG ,%0 ZHUH WZR KLJKO\ SXEOLFL]HG H[FHSWLRQV WR WKH UXOH
&KLQD¶V LQGXVWULDO ERRP E\ FRQWUDVW LV RFFXUULQJ GXULQJ WKH DJH RI WKH :RUOG 7UDGH 2UJDQL]DWLRQ WR ZKLFK LW ZDV DGPLWWHG LQ 8QGHU :72 UXOHV &KLQD LV REOLJHG WR RSHQ LWVHOI WR IRUHLJQ LQYHVWPHQW DQG RZQHUVKLS DW D PXFK HDUOLHU VWDJH RI LWV GHYHORSPHQW WKDQ -DSDQ GLG ,WV H[SRUW ERRP KDV EHHQ OHG E\ IRUHLJQ ILUPV &KLQD LV ULIH ZLWK LQWHOOHFWXDO SLUDF\ KLGGHQ WUDGH EDUULHUV DQG RWKHU LPSHGLPHQWV %XW RYHUDOO LW LV KDUGHU IRU IRUHLJQ HFRQRPLHV RU IRUHLJQ FRPSDQLHV WR FODLP GDPDJH IURP &KLQD¶V WUDGH SROLFLHV WKDQ IURP -DSDQ¶V
ZZZ WKHDWODQWLF FRP PDJD]LQH SULQW FKLQD PDNHV WKH ZRUOG WDNHV
&KLQD 0DNHV 7KH :RUOG 7DNHV 0DJD]LQH 7KH $WODQWLF
:KHQ , ZDV OLYLQJ LQ -DSDQ WKURXJK LWV ERRP RI WKH ODWH ¶ V , DUJXHG LQ WKLV PDJD]LQH WKDW LWV EHKDYLRU LOOXVWUDWHG VRPH JUHDW KLVWRULF WUXWKV WKDW HFRQRPLF PRGHOV FDQQRW HDVLO\ LQFOXGH 6RPHWLPHV VRFLHWLHV SXUVXH JRDOV RWKHU WKDQ WKH RQH HFRQRPLVWV FRQVLGHU UDWLRQDO WKH JUHDWHVW SRVVLEOH JURZWK RI FRQVXPHU ZHOO EHLQJ 7KLV KDV EHHQ WUXH RI $PHULFD PDLQO\ GXULQJ ZDUWLPH EXW DOVR ZKHQ LW KDV SXUVXHG PDUWLDO WRQHG SURMHFWV WKRXJKW WR EH LQ WKH QDWLRQ¶V LQWHUHVW EXLOGLQJ LQWHUVWDWH KLJKZD\V VHQGLQJ PHQ LQWR VSDFH SHUKDSV VRPHGD\ GHYHORSLQJ DOWHUQDWLYH HQHUJ\ VXSSOLHV ,Q D PRUH FRQVLVWHQW ZD\ RYHU GHFDGHV WKLV KDV EHHQ WUXH RI -DSDQ )RU DQ\RQH ZKR KDV WDNHQ (F WKH QDWXUDO UHVSRQVH ZRXOG EH 7KDW¶V WKHLU SUREOHP 7KH\¶UH PDNLQJ KLJK TXDOLW\ SURGXFWV IRU HYHU\RQH HOVH VR ZKDW¶V QRW WR OLNH" %XW LQ WKH SDVW GHFDGH D JURZLQJ QXPEHU RI UHVSHFWDEOH HFRQRPLVWV KDYH DUJXHG WKDW WKH VLWXDWLRQ LV QRW WKDW VLPSOH ,I RQH QDWLRQ GHOLEHUDWHO\ SURPRWHV KLJK WHFK DQG KLJK YDOXH LQGXVWULHV LW FDQ HQG XS ZLWK PRUH RI WKRVH LQGXVWULHV DQG PRUH RI WKH KLJK ZDJH MREV WKDW JR ZLWK WKHP WKDQ LW ZRXOG KDYH RWKHUZLVH 7KLV LV QRW HFRQRPLFDOO\ ³UDWLRQDO´²(XURSHDQ FRXQWULHV KDYH SDLG KHDYLO\ IRU HDFK MRE WKH\ KDYH FUHDWHG WKURXJK $LUEXV %XW %RHLQJ VHOOV IHZHU DLUSODQHV DQG HPSOR\V IHZHU HQJLQHHUV WKDQ LW SUHVXPDEO\ ZRXOG ZLWKRXW FRPSHWLWLRQ IURP $LUEXV 7KH 8QLWHG 6WDWHV GRHV QRW KDYH WR HPXODWH (XURSH¶V DSSURDFK RU -DSDQ¶V %XW LW QHHGV WR EH DZDUH RI WKHP DQG RI WKH SRVVLEOH FRQVHTXHQFHV :LWK GLIIHUHQW HPSKDVHV 3DXO 6DPXHOVRQ RI 0,7 $ODQ %OLQGHU DQG :LOOLDP %DXPRO RI 3ULQFHWRQ DQG 5DOSK *RPRU\ KHDG RI WKH $OIUHG 3 6ORDQ )RXQGDWLRQ KDYH DGYDQFHG WKLV DUJXPHQW
&KLQD¶V EHKDYLRU DQG WKDW RI LWV FRPSDQLHV LV HDVLHU WR PDWFK ZLWK VWDQGDUG HFRQRPLF WKHRULHV WKDQ -DSDQ¶V 6R IDU GHDOV OLNH WKRVH VWUXFN DW WKH 6KHUDWRQ )RXU 3RLQWV KDYH EHHQ PDLQO\ JRRG IRU DOO SDUWLHV &KLQHVH IDPLOLHV KDYH QHZ RSSRUWXQLWLHV LQ OLIH $PHULFDQ FXVWRPHUV KDYH ZLGHU FKRLFHV $PHULFDQ LQYHVWRUV KDYH EHWWHU UHWXUQV %XW RI FRXUVH WKHUH DUH FRPSOLFDWLRQV )LUVW LV WKH VRFLDO HIIHFW YLVLEOH DURXQG WKH ZRUOG ZKLFK LQ KRPDJH WR &KLQD¶V &RPPXQLVW SDVW ZH FDQ FDOO ³LQWHQVLI\LQJ WKH FRQWUDGLFWLRQV ´ *OREDO WUDGH LQYROYHV RQH JUHDW FRQWUDGLFWLRQ 7KH ORZHU WKH EDUULHUV WR WKH IORZ RI PRQH\ SURGXFWV DQG LGHDV WKH OHVV LW PDWWHUV ZKHUH SHRSOH OLYH %XW EHFDXVH PRVW SHRSOH FDQQRW PRYH IURP RQH FRXQWU\ WR DQRWKHU LW ZLOO DOZD\V PDWWHU ZKHUH SHRSOH OLYH ,Q D ZRUOG RI IULFWLRQOHVV FRPSOHWHO\ JOREDOL]HG WUDGH SHRSOH RQ DYHUDJH ZRXOG DOO EH ULFKHU²EXW HYHU\ VRFLHW\ ZRXOG LQFOXGH D ZLGHU UDQJH RI FODVV FRPIRUW DQG ZHOO EHLQJ WKDQ LW QRZ GRHV 7KRVH ZLWK WKH PRVW PDUNHWDEOH JOREDO WDOHQWV ZRXOG EH ULFKHU EHFDXVH WKH\ FRXOG VHOO WR WKH ODUJHVW SRVVLEOH PDUNHW (YHU\RQH HOVH ZRXOG EH SRRUHU EHFDXVH RI FRPSHWLWLRQ IURP D ELOOLRQV VWURQJ ODERU SRRO :LWK QR WUDGH EDUULHUV WKHUH ZRXOG EH QR UHDVRQ ZK\ WKH DYHUDJH SHUVRQ LQ VD\ +ROODQG ZRXOG EH EHWWHU RII WKDQ WKH DYHUDJH RQH LQ ,QGLD (DFK VRFLHW\ ZRXOG FRQWDLQ D FURVV VHFWLRQ RI WKH ZRUOG¶V ZKROH LQFRPH GLVWULEXWLRQ²\HW LWV SHRSOH ZRXOG KDYH WR OLYH ZLWKLQ WKH VDPH QDWLRQDO ERUGHUV :H¶UH QRZKHUH QHDU WKDW SRLQW %XW WKH LQFUHDVLQJ LQWHJUDWLRQ RI WKH $PHULFDQ DQG &KLQHVH HFRQRPLHV SXVKHV ERWK FRXQWULHV WRZDUG LW 7KLV LV PRUH RU OHVV DOO JRRG IRU &KLQD EXW QRW DOO JRRG IRU $PHULFD ,W PHDQV HFRQRPLF EHQHILWV PDLQO\ IRU WKRVH ZKR KDYH DOUHDG\ VXFFHHGHG D KDUGHU SDWK XS IRU WKRVH ZKR DUH DOUHDG\ DW D GLVDGYDQWDJH DQG IXUWKHU VWUDLQ RQ WKH DOUHDG\ ZHDNHQHG VHQVH RI IHOORZ IHHOLQJ DQG VKDUHG RSSRUWXQLW\ WKDW DOORZV D VRFLHW\ DV GLYHUVH DQG XQHTXDO DV $PHULFD¶V WR FRKHUH
ZZZ WKHDWODQWLF FRP PDJD]LQH SULQW FKLQD PDNHV WKH ZRUOG WDNHV
&KLQD 0DNHV 7KH :RUOG 7DNHV 0DJD]LQH 7KH $WODQWLF
$ IXUWKHU SUREOHP LV WKDW &KLQD¶V EXVLQHVV DQG JRYHUQPHQWDO OHDGHUV DUH DOO WRR DZDUH RI KRZ WKH VPLOH\ FXUYH DIIHFWV WKHP <HV LW¶V EHWWHU WR KDYH MREV WKDW SD\ D \HDU WKDQ QRQH DW DOO %XW LW ZRXOG EH EHWWHU VWLOO WR KDYH MREV WKDW SD\ PDQ\ WLPHV DV PXFK DQG DUH DW PRUH GHVLUDEOH SRVLWLRQV DORQJ WKH FXUYH ,I WKH 8QLWHG 6WDWHV ZHUH LQ &KLQD¶V SRVLWLRQ LW ZRXOG EH GRLQJ HYHU\WKLQJ SRVVLEOH WR EULQJ PRUH KLJK YDOXH ZRUN ZLWKLQ LWV ERUGHUV²DQG WKDW RI FRXUVH LV ZKDW &KLQD LV WU\LQJ WR GR (YHU\ZKHUH \RX WXUQ \RX VHH DQ LOOXVWUDWLRQ -XVW D IHZ ,Q WKH IDU QRUWK RI &KLQD ,QWHO KDV MXVW DJUHHG WR EXLOG D PDMRU FKLS IDEULFDWLRQ SODQW ZLWK KLJK HQG HQJLQHHULQJ DQG GHVLJQ MREV QRW MXVW VHDWV RQ WKH DVVHPEO\ OLQH ,Q %HLMLQJ ERWK 0LFURVRIW DQG *RRJOH KDYH RSHQHG JHQXLQH UHVHDUFK FHQWHUV QRW MXVW RIILFHV WR VHUYH WKH ORFDO PDUNHW 'RZQ LQ 6KHQ]KHQ /LDP &DVH\¶V FRPSDQ\ LV FUHDWLQJ LQGXVWULDO GHVLJQ FHQWHUV ZKHUH SURGXFWV ZLOO EH FRQFHLYHG QRW MXVW VQDSSHG WRJHWKHU :KDW ZDV UHFHQWO\ D IDFWRU\ ]RQH LQ 6KDQJKDL LV EHLQJ JHQWULILHG ORFDO DXWKRULWLHV DUH SXVKLQJ IDFWRULHV WR UHORFDWH PLOHV DZD\ VR WKHLU EXLOGLQJV FDQ EH WXUQHG LQWR ZKLWH FROODU HQJLQHHULQJ DQG GHVLJQ FHQWHUV $W WKH PRPHQW PRVW MREV ,¶YH VHHQ WKH \RXQJ ZRPHQ LQ WKH IDFWRULHV SHUIRUP KDYH QRW EHHQ ³WDNHQ´ IURP $PHULFD EHFDXVH LQ $PHULFD WKHVH DVVHPEO\ W\SH WDVNV ZRXOG EH GRQH E\ PDFKLQHV %XW WKH &KLQHVH JRDO LV RI FRXUVH WR EXLOG WRZDUG VRPHWKLQJ PRUH OXFUDWLYH 0DQ\ SHRSOH , KDYH VSRNHQ ZLWK VD\ WKDW WKH FOLPE ZLOO EH VORZ IRU &KLQHVH LQGXVWULHV EHFDXVH WKH\ KDYH VR IDU WR JR LQ EULQJLQJ WKHLU GHVLJQ PDQDJHPHQW DQG EUDQGLQJ HIIRUWV XS WR ZRUOG VWDQGDUGV ³7KLQN DERXW LW²JOREDO FRPSDQLHV DUH IXOO RI &(2V DQG H[HFXWLYHV IURP ,QGLD EXW YHU\ IHZ &KLQHVH ´ 'RPLQLF %DUWRQ WKH FKDLUPDQ RI 0Fà¯&#x2122;.LQVH\¶V $VLD 3DFLILF SUDFWLFH WROG PH 7KH PDLQ UHDVRQ KH VDLG LV &KLQD¶V OLPLWHG SRRO RI H[HFXWLYHV ZLWK DGHTXDWH IRUHLJQ ODQJXDJH VNLOOV DQG H[SHULHQFH ZRUNLQJ DEURDG $QG\ 6ZLWN\ WKH PDQDJLQJ GLUHFWRU±$VLD 3DFLILF IRU WKH IDPHG &DOLIRUQLD GHVLJQ ILUP ,'(2 GHVFULEHG D IUHTXHQW &KLQHVH RXWORRN WRZDUG TXDOLW\ FRQWURO DV ³KDSS\ ZLWK FUDSS\ ´ 7KLV PDNHV LW KDUG IRU WKHP WR PRYH EH\RQG WKH ORFDO ORZ YDOXH PDUNHW ³(YHQ QRZ LQ &KLQD PRVW SHRSOH GRQ¶W KDYH DQ L3RG RU D QRWHERRN FRPSXWHU ´ WKH PDQDJHU RI D 7DLZDQHVH RZQHG DXGLR GHYLFH IDFWRU\ WROG PH ³6R LW¶V KDUGHU IRU WKHP WR WKLQN XS LPSURYHPHQWV RU HYHQ WHOO D JRRG RQH IURP D EDG RQH ´ 7KHVH DQG RWKHU IDFWRUV PD\ VORZ &KLQD¶V SURJUHVV %XW WKDW¶V D IHHEOH EDVLV IRU $PHULFDQ KRSHV 7KH PHDVXUHV $PHULFDQV PRVW RIWHQ GLVFXVV IRU GHDOLQJ ZLWK &KLQD DUH QRW PXFK EHWWHU DV D ORQJ WHUP EDVLV IRU KRSH <HV WKH 50% LV QRZ XQGHUYDOXHG DJDLQVW WKH GROODU <HV WKDW PDNHV &KLQHVH H[SRUWV FKHDSHU WKDQ WKH\ ZRXOG RWKHUZLVH EH $QG \HV WKH 50%¶V YDOXH VKRXOG ULVH²DQG LW ZLOO %XW DW QR FRQFHLYDEOH OHYHO ZRXOG LW EULQJ WKRVH 6KHQ]KHQ MREV EDFN WR 2KLR $W EHVW LW ZRXOG PDNH 8 6 H[SRUWV IURP ORFRPRWLYHV DQG KLJK WHFK PHGLFDO HTXLSPHQW WR ZLQH DQG VRIWZDUH PRUH DWWUDFWLYH 6XFK FRPPHUFLDO YLFWRULHV DUH LPSRUWDQW EXW WKH\ DUH XQOLNHO\ WR EH DGYDQFHG E\ WKUHDWV RI UHWDOLDWRU\ WDULIIV LI &KLQD GRHV QRW VSHHG WKH 50%¶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
ZZZ WKHDWODQWLF FRP PDJD]LQH SULQW FKLQD PDNHV WKH ZRUOG WDNHV
&KLQD 0DNHV 7KH :RUOG 7DNHV 0DJD]LQH 7KH $WODQWLF
WD[ EUHDNV DQG RWKHU EHQHILWV 8QGHU :72 UXOHV H[SRUW VXEVLGLHV RI DOO VRUWV DUH SURKLELWHG 8 6 RIILFLDOV DFDGHPLFV DQG WUDGH JURXSV KDYH SUHSDUHG OLVWV RI GH IDFWR VXEVLGLHV WKDW FXW WKH SULFH RI &KLQHVH JRRGV WR 8 6 FRQVXPHUV E\ SHUFHQW SHUFHQW DQG HYHQ PRUH 7KH &KLQHVH²OLNH WKH (XURSHDQV $XVWUDOLDQV DQG RWKHUV²DUH TXLFN WR UHWRUW WKDW WKH 8QLWHG 6WDWHV VXEVLGL]HV PDQ\ SURGXFWV WRR HVSHFLDOO\ H[SRUWV IURP ODUJH VFDOH IDUPV
7KLV LV REYLRXVO\ VLJQLILFDQW %XW WKLQN DJDLQ RI WKRVH (WKHUQHW FRQQHFWRUV WKDW UHWDLO IRU DQG FRVW RQO\ WR PDNH 5HPRYLQJ DOO LPDJLQDEOH VXEVLGLHV PLJKW SXVK WKH PDQXIDFWXULQJ FRVW WR 6XSSRVH LW ZHQW WR 7KDW ZRXOG KDYH D ELJ HIIHFW RQ GHFLVLRQV PDGH E\ FRUSRUDWLRQV WKDW RXWVRXUFH WR &KLQD²&DQ WKH\ UDLVH WKH UHWDLO SULFH" 0XVW WKH\ MXVW DFFHSW D ORZHU PDUJLQ" 6KRXOG WKH\ EXLOG WKH QH[W IDFWRU\ LQ 9LHWQDP"²EXW LW ZRXOG QRW PDNH DQ\RQH EULQJ SURGXFWLRQ EDFN WR WKH 8QLWHG 6WDWHV *RYHUQPHQW SROLF\ DQG IDYRULWLVP PD\ SOD\ D ELJ UROH LQ &KLQD¶V KXJH URDG EXLOGLQJ DQG ODQG GHYHORSPHQW SROLFLHV EXW WKH\ VHHP WR EH VHFRQGDU\ IDFWRUV LQ WKH RXWVRXUFLQJ ERRP )RU LQVWDQFH ZKHQ , DVNHG 0U &KLQD ZKLFK RIILFLDOV , VKRXOG WU\ WR LQWHUYLHZ LQ WKH ORFDO 6KHQ]KHQ JRYHUQPHQW WR XQGHUVWDQG KRZ WKH\ ZRUNHG ZLWK FRPSDQLHV KH VDLG KH GLGQ¶W NQRZ +H¶G QHYHU PHW DQ\ $PHULFDQ FRPSODLQWV DERXW WKH 50% DERXW VXEVLGLHV DQG DERXW RWKHU &KLQHVH SUDFWLFHV KDYH WKLV LQ FRPPRQ 7KH\ DVVXPH WKDW WKH VROXWLRQ WR ORQJ WHUP WHQVLRQV LQ WKH WUDGLQJ UHODWLRQVKLS OLHV LQ FKDQJHV RQ &KLQD¶V VLGH , WKLQN WKDW DVVXPSWLRQ LV QDLYH ,I WKH 8QLWHG 6WDWHV LV XQKDSS\ ZLWK WKH HIIHFWV RI LWV LQWHUDFWLRQ ZLWK &KLQD WKDW¶V $PHULFD¶V SUREOHP QRW &KLQD¶V 7R Là¯&#x2122;PDJLQH WKDW WKH 8QLWHG 6WDWHV FDQ VWRS &KLQD IURP SXUVXLQJ LWV RZQ HFRQRPLF DPELWLRQV WKURXJK QDJJLQJ WKUHDWV RU HQWLFHPHQW LV WR IRRO RXUVHOYHV ,I D FRXQWU\ GRHV QRW OLNH WKH WHUPV RI LWV EXVLQHVV GHDOLQJV ZLWK WKH ZRUOG LW QHHGV WR FKDQJH LWV RZQ SROLFLHV QRW H[SHFW WKH ZRUOG WR FKDQJH &KLQD KDV GRQH MXVW WKDW WR LWV RZQ EHQHILW²DQG XS XQWLO QRZ WR $PHULFD¶V $UH ZH XQFRPIRUWDEOH ZLWK WKH $PHULFD WKDW LV EHLQJ VKDSHG E\ JOREDO HFRQRPLF IRUFHV" 7KH LQHTXDOLW\" 7KH VHQVH RI HQWLWOHPHQW IRU VRPH" 2I VWLIOHG RSSRUWXQLW\ IRU RWKHUV" 7KH ZLGHVSUHDG IHDU WKDW WRGD\¶V WUHQGV²ERUURZLQJ FRQVXPLQJ ORRNLQJ LQZDUG XVLQJ XS LQIUDVWUXFWXUH²ZLOO PDNH LW KDUG WR VWD\ DKHDG WRPRUURZ SDUWLFXODUO\ LQ UHJDUG WR &KLQD" ,I VR WKRVH WUHQGV WKHPVHOYHV DQG WKH $PHULFDQ FKRLFHV EHKLQG WKHP DUH ZKDW $PHULFDQV FDQ DGGUHVV 7KH\¶UH QRW &KLQD¶V SUREOHP DQG WKH\¶UH QRW WKH IDXOW RI DQ\RQH LQ 6KHQ]KHQ 7KLV DUWLFOH DYDLODEOH RQOLQH DW KWWS ZZZ WKHDWODQWLF FRP PDJD]LQH DUFKLYH FKLQD PDNHV WKH ZRUOG WDNHV &RS\ULJKW Â&#x2039; E\ 7KH $WODQWLF 0RQWKO\ *URXS $OO 5LJKWV 5HVHUYHG
ZZZ WKHDWODQWLF FRP PDJD]LQH SULQW FKLQD PDNHV WKH ZRUOG WDNHV