Second City - Leveling The Playing Field

Page 1

$Q 8UEDQ 5HYLWDOL]DWLRQ 3ODQ IRU &ROyQ 3DQDPi



´«7KH PHUJLQJ RI SDVW NQRZOHGJH ZLWK SHUVRQDO FUHDWLYH DELOLW\ ZLOO DOORZ WKH VWXGHQW WR IRFXV RQ SXUSRVH µ )UDQN 7RE\ 0DUWLQ 7R ZKRP WKLV PDVWHU V UHSRUW LV GHGLFDWHG



$Q 8UEDQ 5HYLWDOL]DWLRQ 3ODQ IRU &ROyQ 3DQDPi

7+( 81,9(56,7< 2) $5,=21$ /DQGVFDSH $UFKLWHFWXUH 3URJUDP 6SULQJ

.(1'5$ & +<621


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ÀQLWH DPRXQWV RI ORYH DQG WKDQNV JR RXW WR P\ IDPLO\ HVSHFLDOO\ P\ PRWKHU +HU XQFRQGLWLRQDO ORYH DQG VXSSRUW KDYH KHOSHG PH EHFRPH WKH VWURQJ DQG GHWHUPLQHG ZRPDQ , DP WRGD\ 7KLV SURMHFW ZRXOG QRW KDYH EHHQ DW DOO SRVVLEOH ZLWKRXW KHU

LLL

7KDQNV WR P\ FRPPLWWHH PHPEHUV 'U 0DUJDUHW /LYLQJVWRQ FRPPLWWHH FKDLU 2VFDU %OD]TXH] .RQD *UD\ DQG <DULHOD &HGRQD ZKRVH JXLGDQFH DQG LQVLJKW KHOSHG PDNH WKLV SURMHFW FRPH WR IUXLWLRQ $OO RI \RX KDYH KHOSHG WUDQVIRUP PH LQWR D PRUH ZHOO URXQGHG GHVLJQHU

6HFRQG &LW\ $&.12:/('*(0(176


'U 0DUJDUHW /LYLQJVWRQ

.RQD *UD\

2VFDU %OD]TXH]

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ÀUVW WR VKRZ PH ZKDW 3DQDPD KDG WR RIIHU 7R P\ GHDU IULHQG $ULDQQD &URVE\ , ZRXOG OLNH WR H[WHQG VSHFLDO WKDQNV IRU WUDYHOLQJ WR 3DQDPD ZLWK PH LQ SXUVXLW RI WKLV SURMHFW ,W ZDV \RXU SDWLHQFH DQG VNLOOIXO GULYLQJ WKDW JRW XV WKURXJK WKDW WULS LQ RQH SLHFH /DVWO\ , ZRXOG OLNH WR JLYH VSHFLDO WKDQNV WR P\ 6SHOPDQ VLVWHUV <RXU VXSSRUW DQG HQFRXUDJHPHQW KHOSHG PH UHPDLQ IRFXVHG DQG VWHDGIDVW WKURXJKRXW WKLV SURFHVV DQG , DP HWHUQDOO\ JUDWHIXO LY


Y

$%675$&7

,1752'8&7,21

/,7(5$785( 5(9,(:

&$6( 5(9,(:6

6,7( $1$/<6,6

'(6,*1 $33/,&$7,21

&21&/86,21

5()(5(1&(6



$V WKH ZRUOG VKLIWV WRZDUGV LQFUHDVHG XUEDQL]DWLRQ LVVXHV RI VRFLDO LQHTXLW\ DOVR EHJLQ WR ULVH WR WKH IRUHIURQW RIWHQ DIIHFWLQJ PRVW FULWLFDOO\ WKRVH FLWL]HQV ZKR DUH HFRQRPLFDOO\ GLVDGYDQWDJHG $UHDV LQ ZKLFK WKHUH DUH IHZHU UHVRXUFHV WR GHIHQG DJDLQVW WKH QHJDWLYH LPSDFWV RI UDSLG XUEDQ GHYHORSPHQW WHQG WR EHFRPH D GHWULPHQW WR WKRVH FLWL]HQV OLYLQJ LQ VDLG DUHDV 6XFK LV WKH FDVH ZLWK 3DQDPi D QDWLRQ VXIIHULQJ IURP HFRQRPLF LQHTXDOLW\ SRVW UDSLG XUEDQL]DWLRQ PXFK WR WKH GHWULPHQW RI LWV FLWL]HQV (YHQ ZLWK VXEVWDQWLDO HFRQRPLF JURZWK RYHU WKH ODVW GHFDGH 3DQDPi VWLOO ERDVW WKH VHFRQG PRVW XQHTXDO GLVWULEXWLRQ RI LQFRPH LQ /DWLQ $PHULFD $UFKLEROG

7KH ´KLJK YDOXHµ VHUYLFH LQGXVWULHV WKDW GRPLQDWH WKH 3DQDPDQLDQ HFRQRP\ WRWDO DQ DSSUR[LPDWH RI WKH FRXQWU\·V DQQXDO ELOOLRQ HFRQRP\ ² DQ LQGLFDWLRQ RI D SRVVLEO\ WKULYLQJ MRE PDUNHW /LOO\ DQG $VVRFLDWHV 7KLV SODFHV 3DQDPi LQ D XQLTXH SRVLWLRQ WR EHJLQ WKH PLWLJDWLRQ RI HFRQRPLF LQHTXDOLW\ &ROyQ WUDGLWLRQDOO\ NQRZQ DV 3DQDPi·V ´6HFRQG &LW\µ LV KRPH WR WKH ODUJHVW IUHH WUDGH ]RQH LQ WKH :HVWHUQ +HPLVSKHUH WKH &ROyQ )UHH =RQH &)= DQG KDV EHHQ JUHDWO\ LPSDFWHG E\ WKLV XQHYHQ GLVWULEXWLRQ RI ZHDOWK 8 6 'HSDUWPHQW RI 6WDWH (YHQ ZLWK PXFK HPSKDVLV RQ LPSURYLQJ WKH &)= YLD WDONV RI D QHZ LQWHUQDWLRQDO DLUSRUW DQG SRUW H[SDQVLRQ OLWWOH DWWHQWLRQ KDV EHHQ JLYHQ WR WKH FLW\·V UHVLGHQWV /LOO\ DQG $VVRFLDWHV

6HFRQG &LW\ $%675$&7

&ROyQ·V LGHDO &DULEEHDQ FRDVWDO ORFDWLRQ EHDXWLIXO WURSLFDO ODQGVFDSHV DQG KLVWRULF DUFKLWHFWXUH PDNH LW D SULPH ORFDWLRQ IRU WUDGH WRXULVP DQG XUEDQ GHYHORSPHQW OHDYLQJ QR HYLGHQW UHDVRQ IRU WKH GHVHUWLRQ FXUUHQWO\ EHLQJ H[SHULHQFHG E\ LWV FLWL]HQV DQG ODQGVFDSH 7KH QXPEHU RI FKDOOHQJHV IDFLQJ &ROyQ FRXSOHG ZLWK WKH FLW\·V KLVWRULF FXOWXUDO DQG HFRQRPLF VLJQLÀFDQFH KDYH FUHDWHG D FRPSOH[ EOHQG RI FRQWH[WXDO IDFWRUV EHJJLQJ IRU H[SORUDWLRQ 0RUHRYHU PDQ\ RI WKH SUREOHPV LQ &ROyQ GHVHUYH FRQVLGHUDEOH DQDO\VLV DV LW LV LQ GHVSHUDWH QHHG RI UHYLWDOL]DWLRQ 7KHVH FKDOOHQJHV SUREOHPV DQG RQJRLQJ FRQFHUQV KRZHYHU DUH IDU EH\RQG WKH VFRSH DQG GHSWK RI WKH WLPH DOORWWHG IRU WKLV PDVWHU·V UHSRUW 1HYHUWKHOHVV WKLV SURMHFW LQWHQGV WR KLJKOLJKW VRPH RI WKH NH\ FRPSRQHQWV SURKLELWLQJ &ROyQ·V GHYHORSPHQW WUDQVIRUPLQJ WKRVH FRQVWUDLQWV LQWR RSSRUWXQLWLHV IRU JURZWK 7KH IRFXV RI WKLV PDVWHU·V UHSRUW LV WR LQYHVWLJDWH DQG FRQFHSWXDOL]H SRWHQWLDO VROXWLRQV WR WKH LVVXHV SODJXLQJ &ROyQ 3ULPDULO\ WKLV UHSRUW ZLOO H[DPLQH ZKDW FRQWULEXWLRQV ODQGVFDSH DUFKLWHFWXUDO VWUDWHJLHV FDQ SURYLGH WR WKH FLW\ RI &ROyQ LQ KHOSLQJ LQFUHDVH TXDOLW\ RI OLIH IRU LWV FLWL]HQV 7KURXJK FXOWXUDO UHVLOLHQFH VWUDWHJLHV JUHHQ LQIUDVWUXFWXUH LQFUHDVHG FRQQHFWLYLW\ DQG VXVWDLQDEOH WRXULVP SUDFWLFHV WKH FXOPLQDWLQJ GHVLJQ DWWHPSWV WR GHPRQVWUDWH KRZ &ROyQ FDQ EH UHVWRUHG WR LWV IRUPHU VWDWXV DV D EXVWOLQJ PHWURSROLV RI WRXULVP DQG WUDGH



6WUHHWV RI &ROyQ LQ WKH V


%(,19(1,'26 $ &2/Ð1 5(3Ó%/,&$ '( 3$1$0É +,6725< 385326( 5(6($5&+ 48(67,21 *2$/6 2%-(&7,9(6 0(7+2'6


C /RFDWHG MXVW VL[W\ IRXU NLORPHWHUV PLOHV QRUWK RI 3DQDPi &LW\ QHDU WKH &DULEEHDQ RXWIDOO RI WKH 3DQDPi &DQDO VWDQGV WKH SRUW FLW\ RI &ROyQ ,Q WKH V GXULQJ WKH FRQVWUXFWLRQ RI WKH 3DQDPi UDLOZD\ DQG WKH 3DQDPi &DQDO 3DQDPi·V ´6HFRQG &LW\µ &ROyQ ZDV RQFH D WKULYLQJ XUEDQ PHWURSROLV +RZHYHU LQ UHFHQW GD\V &ROyQ LV FXUUHQWO\ H[SHULHQFLQJ H[WUHPH GLVSDULWLHV RI ZHDOWK FULPH DQG DQ DUUD\ RI QHJOHFWHG ODQGVFDSHV )RUPHUO\ D PDUVK\ FRUDO LVODQG &ROyQ ZDV FRQVWUXFWHG RQ D IRXQGDWLRQ WKDW WRRN RYHU D \HDUV WR LQÀOO ZPI RUJ &ROyQ ERDVW D FODVVLF JULGGHG XUEDQ IRUP FRQVLVWLQJ RI DQ HFOHFWLF EOHQG RI DUFKLWHFWXUDO VW\OHV UHÁHFWLQJ WKH FXOWXUDO GLYHUVLW\ DQG GHYHORSPHQW RI WKH FLW\

$HULDO YLHZ ORRNLQJ QRUWKZHVW DW &ROyQ FLW\ DQG %DKLD /LPRQ

6HFRQG &LW\ ,1752'8&7,21


%HDXWLIXO DUW GHFR JRWKLF UHYLYDO HDUO\ LQWHUQDWLRQDO DQG QHR FODVVLFDO DUFKLWHFWXUH SUHYLRXVO\ KRVWHG &ROyQ·V WKULYLQJ QLJKW OLIH &RXQWOHVV QLJKW FOXEV FDEDUHWV UHVWDXUDQWV DQG WKHDWHUV ZHUH IUHTXHQWO\ YLVLWHG E\ ZRUOG UHQRZQHG SHUVRQDOLWLHV RI WKH WLPH OLNH $OEHUW (LQVWHLQ ZKR ZDV NQRZQ WR HQMR\ &ROyQ·V QRWHZRUWK\ MD]] VFHQH $UFKLEROG 1RZ WKHVH KLVWRULF VWUXFWXUHV DUH FROODSVLQJ VNHOHWRQV RI WKHLU SDVW IRUP $PLG WKLV XQLTXH PRGHO RI XUEDQ IRUP H[LVW GLODSLGDWHG LQIUDVWUXFWXUH SHUHQQLDO ÁRRGLQJ DQG VHZDJH ÀOOHG VWUHHWV WKDW FRQWLQXHV WR VFRXUJH WKH FLW\ $ VHYHUH GLFKRWRP\ FXUUHQWO\ H[LVWV EHWZHHQ &ROyQ DQG 3DQDPi &LW\ ERWK FXOWXUDOO\ DQG HFRQRPLFDOO\ 'HVSLWH &ROyQ EHLQJ KRPH WR WKH ODUJHVW IUHH WUDGH ]RQH LQ WKH ZHVWHUQ KHPLVSKHUH WKH &ROyQ )UHH =RQH &)= ZKLFK VROG ELOOLRQ ZRUWK RI LPSRUWHG JRRGV LQ RQO\ UHWXUQHG RI WKH UHYHQXH WR WKH FLW\ /LOO\ DQG $VVRFLDWHV $V D FRXQWU\ 3DQDPi KDV H[SHULHQFHG DQ HVWLPDWHG LQFUHDVH LQ HFRQRPLF JURZWK WKH KLJKHVW HYHU LQ /DWLQ $PHULFD $UFKLEROG +RZHYHU WKH PDMRULW\ RI WKH FRXQWU\·V ZHDOWK LV FRQWLQXDOO\ IXQQHOHG LQWR 3DQDPi &LW\ 3HUVLVWHQW SRYHUW\ DQG PLQLPDO HPSOR\PHQW RSSRUWXQLWLHV IRU RYHU FLWL]HQV LQ &ROyQ DGGV DQRWKHU OD\HU RI FRPSOH[LW\ WR WKH RSSRVLWLRQ WKDW LV SUHVHQWO\ KDSSHQLQJ LQ WKH FLW\ 7KURXJK WKH XVH RI XUEDQ GHVLJQ VWUDWHJLHV WKDW HPSKDVL]H FRQQHFWLYLW\ LQFUHDVHG HFRQRPLF GHYHORSPHQW JUHHQ LQIUDVWUXFWXUH DQG WKH FXOWXUH RI &ROyQ WKLV SURMHFW VHHNV WR DGG LQ WKH UHYLWDOL]DWLRQ WKH FLW\ 7KLV LV LQ QR ZD\ D FRPSHWLWLRQ EHWZHHQ &ROyQ DQG 3DQDPi &LW\ EXW UDWKHU DQ DWWHPSW WR DLG LQ WKH XQHTXDO GLVWULEXWLRQ RI ZHDOWK EHWZHHQ WKH WZR WHUPLQDO FLWLHV ,W LV WLPH WR OHYHO WKH SOD\LQJ ÀHOG


6HFRQG &LW\ ,1752'8&7,21


C C 5RXJKO\ WKH VL]H RI 6RXWK &DUROLQD VWUHWFKLQJ D WRWDO RI VTXDUH NLORPHWHUV VTXDUH PLOHV WKH ,VWKPXV RI 3DQDPi LV ´WKH JHRJUDSKLFDO FURVVURDGV RI WKH ZRUOGµ FRQQHFWLQJ 1RUWK DQG 6RXWK $PHULFD +DUGLQJ 7KH XQLTXH ORFDWLRQ RI WKLV VPDOO &HQWUDO $PHULFDQ FRXQWU\ PDNHV 3DQDPi RQH RI WKH PRVW FXOWXUDOO\ DQG HFRORJLFDOO\ GLYHUVH DUHDV LQ WKH ZRUOG 'XH WR LWV SOHWKRUD RI GLYHUVH HFR V\VWHPV 81(6&2 8QLWHG 1DWLRQV (GXFDWLRQDO 6FLHQWLÀF DQG &XOWXUDO 2UJDQL]DWLRQ GHFODUHG LW RQH RI WKH ZRUOG·V PRVW HFRORJLFDOO\ GLYHUVH UHJLRQV DQG LV QRZ UHFRJQL]HG DV D :RUOG +HULWDJH %LRVSKHUH 5HVHUYH


)520 ,67+086 2) ',9(56,7< 72 &2148,67$'25 &2148(67 $SSUR[ 0LOOLRQ <HDUV $JR ² ,W ZDV EHOLHYHG WKDW WKH ,VWKPXV RI 3DQDPi ZDV IRUPHG DV WKH UHVXOW RI ULVLQJ DQG VXEVLGLQJ RFHDQ OHYHOV +RZHYHU UHFHQW UHVHDUFK VKRZV WKDW 3DQDPi ZDV DW WKLV WLPH PRVW OLNHO\ D &HQWUDO $PHULFDQ SHQLQVXOD 7KURXJK WKH PRYHPHQW RI WHFWRQLF SODWHV VORZO\ PHUJLQJ ZLWK WKH FRQWLQHQW RI 6RXWK $PHULFD WKH ,VWKPXV RI 3DQDPi ZDV ERUQ 0DQ\ VFLHQWLVW EHOLHYH WKDW LI WKLV FROOLVLRQ EHWZHHQ 1RUWK DQG 6RXWK $PHULFD KDG QRW RFFXUUHG WKH ZRUOG ZRXOG EH YHU\ GLIIHUHQW

ZDV LQVWUXFWHG QRW WR WUDYHO SDVW D FHUWDLQ SRLQW GRZQ ULYHU $OWKRXJK &ROXPEXV GLG QRW VSHQG D JUHDW GHDO RI WLPH LQ 3DQDPi LW GLG QRW VWRS KLP IURP QDPLQJ WKH $WODQWLF FRDVWDO FLW\ RI &ROyQ WKH FLWLHV RIÀFLDO QDPH LV &ULVWREDO &ROyQ RU &KULVWRSKHU &ROXPEXV DIWHU KLPVHOI +DUGLQJ %%& 1HZV

² (OHYHQ \HDUV DIWHU WKH ÀUVW DUULYDO RI &KULVWRSKHU &ROXPEXV WR WKH $WODQWLF FRDVW RI 3DQDPi 9DVFR 1XQH] GH %DOERD EHFDPH WKH ÀUVW (XURSHDQ WR WUDYHO DFURVV 3DQDPi DQG VHH WKH 3DFLÀF 2FHDQ *XLGHG E\ WKH QDWLYHV WKURXJK WKH MXQJOHV RI 3DQDPi %DOERD OHG DQ H[SHGLWLRQ RI 6SDQLDUGV DFURVV WKH ,VWKPXV WR WKH 3DFLÀF 2FHDQ ZKLFK KH QDPHG IRU 6SDLQ DQG FDOOHG 0DU GHO 6XU +,6725< FRP ² 3DQDPi EHFRPHV LQFRUSRUDWHG LQWR WKH 9LFH UR\DOW\ RI 3HUX

&ROXPEXV PD\ KDYH HYHQ VDLOHG RQ WR $VLD 7KH PHUJLQJ RI 1RUWK DQG 6RXWK $PHULFD KDV PDGH 3DQDPi D ORFXV IRU GLYHUVH JURXSV RI ÁRUD DQG IDXQD DQG D FHQWHU IRU WUDGH VLQFH LWV ÀUVW VLJKWLQJV E\ WKH 6SDQLVK )DUULV HW DO 6FLHQFH 'DLO\ &RDWHV (DUWKREVHUYDWRU\ QDVD JRY

² 2Q KLV WK DQG ODVW MRXUQH\ WR WKH ´1HZ :RUOG µ &KULVWRSKHU &ROXPEXV ODQGHG LQ 3DQDPi IRU WKH ÀUVW WLPH OHDYLQJ KLV EURWKHU %DUWKRORPHZ WR HVWDEOLVK WKH ÀUVW 6SDQLVK VHWWOHPHQW DW WKH RSHQLQJ RI WKH 5LR %HOHQ LQ WKH &ROyQ 3URYLQFH RI 3DQDPi 'XULQJ KLV YLVLW &ROXPEXV OHDUQHG RI D VWUDLW WR DQRWKHU RFHDQ EXW

6HFRQG &LW\ ,1752'8&7,21

² $IWHU VXSSRUWLQJ WKH 6SDQLVK FURZQ DJDLQVW /DWLQ $PHULFDQ LQGHSHQGHQFH 3DQDPi DVVHUWHG LWV LQGHSHQGHQFH IURP 6SDLQ 3DQDPi HYHQWXDOO\ MRLQHG WKH FRQIHGHUDF\ RI WKH 5HSXEOLF RI *UDQG &RORPELD FRPSULVHG RI %ROLYLD &RORPELD (FXDGRU 3HUX DQG 9HQH]XHOD +,6725< FRP

&2/Ð1 $1' 7+( 3$1$0É &$1$/ ² 7KH FLW\ RI &ROyQ ZDV IRXQGHG DV WKH $WODQWLF 7HUPLQDO RI WKH 3DQDPi 5DLOURDG V\VWHP E\ WKH $PHULFDQV 0DQ\ PLJUDQW ZRUNHUV IURP WKH 8 6 UHIHUUHG WR WKH FLW\ DV $VSLQZDOO ZKLFK ZDV QDPHG IRU


:LOOLDP +HQU\ $VSLQZDOO D 3DQDPi UDLOURDG SURPRWHU /RFDO 3DQDPDQLDQV QDPHG WKH FLW\ &ROyQ LQ KRQRU RI &KULVWRSKHU &ROXPEXV

² 7KH 3DQDPi &DQDO LV FRPSOHWHG ² 0D\ QG D PDVVLYH ÀUH GHVWUR\HG PRVW RI &ROyQ IRU D VHFRQG WLPH LQFOXGLQJ &DQDO =RQH ZKLFK PDGH XS D ODUJH SRUWLRQ RI WKH EXVLQHVV GLVWULFW DORQJ ZLWK PDQ\ UHVLGHQWLDO KRPHV :LNLSHGLD ² 'LVFXVVLRQV EHJLQ UHJDUGLQJ WKH FUHDWLRQ RI D IUHH ]RQH LQ &ROyQ %%& 1HZV ² 2Q -XQH WK WKH &ROyQ )UHH =RQH &)= LV HVWDEOLVKHG :LNLSHGLD ² 1HZ FDQDO WUHDW\ GUDIW LV IRUPHG EHWZHHQ 8 6 3UHVLGHQW /\QGRQ -RKQVRQ DQG 3DQDPDQLDQ 3UHVLGHQW 0DUFR $XUHOLR 5REOHV 0HQGH] ² &DQDO WUDQVIHU DJUHHPHQW LV IRUJHG EHWZHHQ WKH 8 6 DQG 3DQDPi IRU 'HFHPEHU ² 'HFHPEHU VW 3DQDPi WDNHV IXOO FRQWURO RYHU 3DQDPi &DQDO

,QWHUHVWLQJO\ HQRXJK WKH FLW\ RI &ROyQ ZDV RULJLQDOO\ IRXQGHG RQ WKH ´WUHDFKHURXVO\ PDUVK\µ LVODQG RI 0DQ]DQLOOR +RZHYHU DV D SDUW RI WKH 3DQDPi UDLOURDG FRQVWUXFWLRQ WKH LVODQG ZDV WKHQ FRQQHFWHG WR WKH PDLQODQG RI 3DQDPi 0XFK RI WKH LVODQG KDG WR EH GUDLQHG WR DOORZ IRU SHUPDQHQW VWUXFWXUHV :LNLSHGLD ² )LUVW DWWHPSWV DUH PDGH E\ )UDQFH WR EXLOG D FDQDO FRQQHFWLQJ WKH $WODQWLF DQG 3DFLÀF RFHDQV 'XH WR WKH ÀQDQFLDO GLIÀFXOWLHV DQG WKH ORVV RI RYHU ZRUNHUV IURP WURSLFDO GLVHDVHV FRQVWUXFWLRQ ZDV KDOWHG +,6725< FRP ² 0XFK RI &ROyQ LV GHVWUR\HG LQ D ODUJH ÀUH GXULQJ WKH &RORPELDQ &LYLO :DU :LNLSHGLD ² 8 6 SXUFKDVHV ULJKWV WR EXLOG 3DQDPi &DQDO IROORZLQJ 3DQDPi·V LQGHSHQGHQFH IURP &RORPELD )LIW\ WKRXVDQG PLJUDQW ZRUNHUV ZHUH WUDQVSRUWHG WR 3DQDPi IURP WKH :HVW ,QGLHV WR EHJLQ FRQVWUXFWLRQ RQ WKH 3DQDPi &DQDO

² 3DQDPi &DQDO EUHDNV UHFRUG UHYHQXHV IRU WKH ÀQDQFLDO \HDU HDUQLQJ ELOOLRQ GROODUV ² 3DQDPi &DQDO FHOHEUDWHV LWV FHQWHQQLDO %%& 1HZV


0LJUDQW ZRUNHUV GXULQJ WKH FRQVWUXFWLRQ RI WKH 3DQDPDQLDQ 5DLOZD\

&RPPLVVLRQHG DV D ZD\ VWDWLRQ WR &DOLIRUQLD GXULQJ WKH JROG UXVK &ROyQ 3DQDPi LV WKH $WODQWLF WHUPLQDO HQWUDQFH WR RQH RI WKH ZRUOG·V PRVW LPSRUWDQW WUDGH URXWHV &ROyQ ZDV ODWHU HVWDEOLVKHG DV D PLJUDQW WRZQ LQ IRU WKH ZRUNHUV RI WKH $WODQWLF WHUPLQDO RI WKH 3DQDPi 5DLOURDG 'XULQJ WKLV WLPH RYHU SHRSOH ZHUH WUDQVSRUWHG IURP -DPDLFD 0DUWLQLTXH %DUEDGRV 7ULQLGDG DQG SDUWV RI :HVW $IULFD DV PLJUDQW ZRUNHUV WR DLG LQ WKH FRQVWUXFWLRQ RI WKH 3DQDPi 5DLOURDG DQG &DQDO 7KLV GLDVSRULF VKLIW KDV UHVXOWHG LQ D ODUJH $IUR 3DQDPDQLDQ SRSXODWLRQ GRPLQDWLQJ 3DQDPi·V $WODQWLF FRDVW FRQWULEXWLQJ LPPHQVHO\ WR &ROyQ·V GLVWLQFW FXOWXUDO LGHQWLW\ DUH DQ HFOHFWLF EOHQG RI XQPLVWDNDEO\ XQLTXH PXVLFDO FXOLQDU\ DQG DUFKLWHFWXUDO VW\OHV

6HFRQG &LW\ ,1752'8&7,21


&ROyQ KDV DQG FRQWLQXHV WR DFW DV D ORJLVWLF KXE RI WUDGH IRU WKH FRXQWU\ DQG HPERGLHV D GLVWLQFW FXOWXUDO FRQQHFWLRQ WR WKH $IULFDQ GLDVSRUD WKDW PDNHV WKLV FLW\ D QRWDEOH SLHFH LQ WKH 3DQDPDQLDQ PRVDLF 7KH FLW\·V JHRJUDSKLF ORFDWLRQ JLYHV LW PDMRU DFFHVV WR /DWLQ $PHULFD DQG WKH &DULEEHDQ ZKLFK ERWK KDYH VHHQ H[SRQHQWLDO JURZWK ZLWKLQ WKH ODVW GHFDGH WRWDO RI EHWZHHQ $YHQGDxR 3ROLWLFDOO\ DQG GRPHVWLFDOO\ 3DQDPi LV HQMR\LQJ D WLPH RI SURVSHULW\ ZLWK LPSURYHG LQIUDVWUXFWXUH DQG SHDFHIXO GHPRFUDF\ <HW GHVSLWH WKH FRXQWU\·V SRVLWLYH JURZWK DQG WKH VXFFHVV RI WKH &ROyQ )UHH =RQH &)= WKH FLW\ RI &ROyQ VWLOO VWUXJJOHV WR NHHS XS ZLWK QHLJKERULQJ 3DQDPi &LW\ 5DFLDO GLVFULPLQDWLRQ FRUUXSWLRQ GUXJ UHODWHG YLROHQFH DQG D IDLOLQJ LQIUDVWUXFWXUH DUH FRQVLVWHQW FKDOOHQJHV DIIHFWLQJ WKH FLW\ RI &ROyQ DQG PRUH LPSRUWDQWO\ WKH SHRSOH *UHDW SURVSHFWV IRU VXFFHVVIXO UHYLWDOL]DWLRQ RI WKH FLW\·V LQIUDVWUXFWXUH DQG HFRQRP\ H[LVW IRU &ROyQ LI RQO\ JLYHQ WKH DWWHQWLRQ DQG LQYHVWPHQW LW GHVHUYHV )RU UHDVRQV SUHYLRXVO\ PHQWLRQHG &ROyQ ZDV FKRVHQ DV WKH IRFXV RI D \HDU ORQJ LQYHVWLJDWLRQ LQWR WKH SRVLWLYH LPSDFWV RI GHVLJQ DQG PRUH VSHFLÀFDOO\ ODQGVFDSH DUFKLWHFWXUH RQ D QHJOHFWHG FLW\ 7KH SXUSRVH RI WKLV SURMHFW LV WR QRW RQO\ KLJKOLJKW VRPH RI WKH FKDOOHQJHV &ROyQ LV FXUUHQWO\ IDFLQJ EXW WR DOVR LGHQWLI\ WKH XQLTXH SRWHQWLDO RI 3DQDPi·V 6HFRQG &LW\ 7KH JRDO RI WKLV SURMHFW WKHUHIRUH LV WR LQFUHDVH LQWHUHVW LQ XSOLIWLQJ WKH FLW\ DQG LWV UHVLGHQWV ERWK HFRQRPLFDOO\ DQG HQYLURQPHQWDOO\ WKURXJK GHVLJQ EDVHG VROXWLRQV ,W VKRXOG EH QRWHG WKDW ODQGVFDSH DUFKLWHFWXUH FDQ E\ QR PHDQV VROHO\ VROYH DOO RI &ROyQ·V SUREOHPV +RZHYHU LW FDQ LQLWLDWH WKH SURFHVV DQG RIIHU DIIRUGDEOH VROXWLRQV WR VRPH RI LWV FXUUHQW DQG RQJRLQJ GLIÀFXOWLHV 3UHVHUYDWLRQ RI FLW\·V OLNH &ROyQ WKDW KROG FRQVLGHUDEOH FXOWXUDO HFRQRPLF DQG KLVWRULF YDOXH LV WKH FRUQHUVWRQH RI VXVWDLQDELOLW\ DQG VXVWDLQDEOH SUDFWLFH


-DPDLFDQ PLJUDQW ZRUNHUV GXULQJ FRQVWUXFWLRQ RI WKH 3DQDPi &DQDO


&DQ &ROyQ D KLVWRULF XUEDQ ZDWHUIURQW LQWHJUDWH D JUHHQ LQIUDVWUXFWXUH QHWZRUN WKDW SODFHV HPSKDVLV RQ VXVWDLQDEOH SUDFWLFHV VRFLDO HTXLW\ DQG TXDOLW\ RI OLIH" 0RUH VSHFLÀFDOO\ KRZ FDQ ODQGVFDSH DUFKLWHFWXUH VWUDWHJLHV KHOS FUHDWH VDIHU SHGHVWULDQ FRQQHFWLYLW\ DQG LQFUHDVHG WRXULVP RSSRUWXQLWLHV WKURXJK DGDSWLYH UHXVH IRU FLWL]HQV DQG JXHVW"


B 3URYLGH *5($7(5 &211(&7,9,7< DQG DGGLWLRQDO DUHDV IRU SXEOLF HQJDJHPHQW 'HYHORS DGGHG HDVW ZHVW SHGHVWULDQ FRUULGRUV WKDW RIIHU VDIHU FRQQHFWLYLW\ WR DQG IURP FUXLVH VKLS WHUPLQDO DQG SURSRVHG DUHDV RI RSHQ VSDFH (QKDQFH ZHVW FRDVW DPHQLWLHV DQG DWWUDFWLRQV WR LQFHQWLYL]H HDVW ZHVW PRYHPHQW DFURVV WKH VLWH ,QFUHDVH VDIHW\ SHUFHSWLRQ WKURXJK WKH XVH RI G\QDPLF OLJKWLQJ ZKLOH SURPRWLQJ ZDONDELOLW\ WR VWLPXODWH ORFDO HFRQRPLHV

,QFRUSRUDWH *5((1 ,1)5$6758&785( LQWR VWUHHWVFDSH GHYHORSPHQW DQG QHZ LQIUDVWUXFWXUH GHVLJQ ,QWHJUDWH VWRUPZDWHU PDQDJHPHQW LQWR QHZO\ GHYHORSHG JUHHQ FRUULGRUV WR DOOHYLDWH ÁRRGLQJ DQG VWDQGLQJ ZDWHU 3URYLGH VWUHQJWKHQHG ZDWHUIURQW HGJH WR SURWHFW DJDLQVW ODUJH VWRUPV +LJKOLJKW ELRGLYHUVLW\ ZLWKLQ WKH UHJLRQ WKURXJK WKH XVH RI ORFDO SODQW PDWHULDO DQG DHVWKHWLFV

3URPRWH JUHDWHU &8/785$/ (;&+$1*( EHWZHHQ JXHVW DQG ORFDOV 8VH GHVLJQ DQG V\PEROLVP WR LQFUHDVH DZDUHQHVV RI WKH VLWH·V KLVWRULF VLJQLÀFDQFH &UHDWH ÁH[LEOH DUHDV WR DFFRPPRGDWH IRU WUDGLWLRQDO ORFDO HYHQWV DQG XVHV (QKDQFH H[LVWLQJ DUW PXVLF DQG FXOLQDU\ VFHQH WKURXJK WKH LQWHJUDWLRQ RI SXEOLF DUW WKHDWHUV DQG IDUPHUV PDUNHWV

6HFRQG &LW\ ,1752'8&7,21


*UDIÀWL RQ D GLODSLGDWHG ZDOO LQ &ROyQ WKDW UHDGV D EUHDGLQJ JURXQG IRU UDWV DQG PRVTXLWRHV



/(16(6 2) 6867$,1$%,/,7< &8/785$/ 6867$,1$%,/,7< (&2120,& 6867$,1$%,/,7< (19,5210(17$/ 6867$,1$%,/,7<

3UHVHQW GD\ &ROyQ


*DUEDJH DQG VHZDJH ÀOOHG VWUHHWV LQ &ROyQ

A

8QGHVLUDEOH VRFLDO HQYLURQPHQWDO DQG HFRQRPLF LPSDFWV VWHPPLQJ IURP UDSLG SRSXODWLRQ JURZWK XUEDQL]DWLRQ DQG UHVRXUFH RYHU FRQVXPSWLRQ KDYH FDWDO\]HG VXVWDLQDELOLW\ FRQFHUQV LQWR WKH IRUHIURQW ZLWK UHVSHFW WR WKH IXWXUH RI XUEDQ GHYHORSPHQW 6XVWDLQDELOLW\ KDV QRZ EHFRPH DQ HYHQ JUHDWHU FRQFHUQ ZLWKLQ GHVLJQ EDVHG SURIHVVLRQV VXFK DV ODQGVFDSH DUFKLWHFWXUH 6XVWDLQDELOLW\ LV DQ DWWHPSW WR VHFXUH D SURGXFWLYH V\PELRWLF UHODWLRQVKLS EHWZHHQ QDWXUH DQG KXPDQLW\ SURWHFWLQJ WKH ZRUOG·V UHVRXUFHV IRU IXWXUH JHQHUDWLRQV +RZHYHU WKH GHÀQLWLRQ SXW IRUWK E\ 0HDGRZV 5DQGHUV LQ WKHLU ERRN %H\RQG WKH /LPLWV VWDWHV WKDW ´D VXVWDLQDEOH VRFLHW\ LV RQH WKDW FDQ SHUVLVW RYHU JHQHUDWLRQV RQH WKDW LV IDUVHHLQJ HQRXJK ÁH[LEOH HQRXJK DQG ZLVH HQRXJK QRW WR XQGHUPLQH HLWKHU LWV SK\VLFDO RU LWV VRFLDO V\VWHPV RI VXSSRUWµ 0HDGRZV 0HDGRZV DQG 5DQGHUV

6HFRQG &LW\ /,7(5$785( 5(9,(:


:KLOH WKH OLNHOLKRRG RI REWDLQLQJ FRPSOHWH VXVWDLQDELOLW\ LV \HW WR EH GHWHUPLQHG IRFXV RQ VXVWDLQDEOH SUDFWLFHV LQ DOO IDFHWV RI KXPDQ DQG HQYLURQPHQWDO GHYHORSPHQW VKRXOG EH DWWHPSWHG LQ DQ HIIRUW WR VHUYH WKH JUHDWHU ZKROH RI KXPDQLW\ DQG SURWHFW SUHFLRXV UHVRXUFHV 7KH IROORZLQJ OLWHUDWXUH UHYLHZ VHUYHV DV WKH IRXQGDWLRQ IRU DOO GHVLJQ LPSOLFDWLRQV DQG UHFRPPHQGDWLRQV LQFOXGHG LQ WKLV PDVWHU·V UHSRUW )RU WKH SXUSRVH RI WKLV SURMHFW GHVLJQ DV LW LV XVHG LQ WKLV VWXG\ LV EDVHG XSRQ UHVHDUFK WKDW H[DPLQHV NH\ WRSLFV OLWHUDWXUH DQG WKHRU\ DQG SULQFLSOHV LQ VXSSRUW RI WKH SURMHFW·V UHVHDUFK TXHVWLRQ

OHQVHV ² FXOWXUDO HQYLURQPHQWDO DQG HFRQRPLF ZLWK SDUWLFXODU H[DPLQDWLRQ RI JUHHQ LQIUDVWUXFWXUH QHWZRUNV XUEDQ HFRQRPLF GHYHORSPHQW DQG FXOWXUDO ODQGVFDSH UHVLOLHQF\ ² DOO LQ VXSSRUW RI VXVWDLQDEOH SUDFWLFHV 2QO\ WKURXJK WKRXJKWIXO H[DPLQDWLRQ RI WKH XQLTXH KLVWRULF DQG DFDGHPLF FRQWH[W VXUURXQGLQJ &ROyQ FDQ SXUSRVHIXO GHVLJQ HPHUJH

´7KH TXHVW IRU VXVWDLQDELOLW\ LV WKH PRGHUQ YDULDQW RI WKH &ROyQ·V XQLTXH &DULEEHDQ KLVWRULF ,QGXVWULDO 5HYROXWLRQ DQG FXOWXUDO VLJQLÀFDQFH WR WKH LW RIIHUV HQWLUH JHQHUDWLRQV $PHULFDV DQG SRVLWLRQ WKH RSSRUWXQLW\ WR GR DV D NH\ FRQGXLW RI PHDQLQJIXO ZRUN DQG LQWHUQDWLRQDO WUDGH DUH DOO HTXDOO\ LPSRUWDQW ZKHQ UHGHVLJQ VRFLHWLHV µ ² IRFXVLQJ RQ VXFFHVVIXO 5RVHODQG

&ROyQ GHVHUYHV D PXFK PRUH LQ GHSWK SURJQRVLV RI LWV FXUUHQW FRQGLWLRQV LQ RUGHU WR IXOO\ XQGHUVWDQG WKH FRQYROXWHG FXOWXUH FRQWH[W DQG KLVWRU\ RI &ROyQ )RU WKH SXUSRVH RI WKLV OLWHUDWXUH UHYLHZ IRFXV ZLOO EH SODFHG RQ VXVWDLQDEOH SUDFWLFHV WKURXJK

UHVWRUDWLRQ RI WKLV GLODSLGDWHG FLW\ ,Q DQ HIIRUW WR SURGXFH D KROLVWLF RXWFRPH GHYHORSPHQW RI SRWHQWLDO VROXWLRQV WR LVVXHV VXFK DV VRFLDO LQHTXLW\ HQYLURQPHQWDO GHJUDGDWLRQ DQG ZDWHUIURQW UHVLOLHQF\ LQ &ROyQ ZDUUDQWV H[DPLQDWLRQ WKURXJK PXOWLSOH OHQVHV


´:H KDYH D XQLTXH UHVSRQVLELOLW\ WR XQGHUVWDQG KRQRU DQG LQÁXHQFH WKH PHPRULHV DVVRFLDWHG ZLWK WKH SXEOLF VSDFHV ZH FUDIW %H\RQG UHFDOOLQJ WKH SDVW ODQGVFDSHV FDQ DOVR EH GHVLJQHG ZLWK WKH LQWHQW RI FUHDWLQJ QHZ PHPRULHV IRU IXWXUH JHQHUDWLRQV µ ² 2/,1 6WXGLR &XOWXUDO VXVWDLQDELOLW\ LV DW LWV FRUH DQ LQWHUGLVFLSOLQDU\ DSSURDFK WR XQGHUVWDQGLQJ WKH VLJQLÀFDQFH RI FXOWXUDO V\VWHPV LQ WKH GHYHORSPHQW SURFHVV &XOWXUDO VXVWDLQDELOLW\ VXSSRUWV WKH LGHD WKDW SHRSOH·V KHULWDJH DQG YDOXHV ELQG WKHP WR D SODFH %\ GRLQJ VR D GHHSHU FRQQHFWLRQ WR SODFH DQG D GHVLUH IRU SUHVHUYDWLRQ LV HPEHGGHG 7KH RULJLQV RI D ODQGVFDSH DQG LWV FXOWXUDO YDOXH VKRXOG EH KHDYLO\ FRQVLGHUHG ZKHQ XWLOL]LQJ VXVWDLQDEOH GHYHORSPHQW VWUDWHJLHV

6HFRQG &LW\ /,7(5$785( 5(9,(:


7KLV RIIHUV WKH RSSRUWXQLW\ WR WUDQVIRUP WKLV LQKHUHQW YDOXH LQWR WUXH FXOWXUDO UHYHQXH DQG WKHUHE\ LQFUHDVLQJ HFRQRPLF YDOXH 7KURXJK WKH DFNQRZOHGJHPHQW RI KHULWDJH DQG DWWHPSWV DW SUHVHUYLQJ WKDW KHULWDJH IXWXUH GHVLJQV FDQ GHYHORS JUHDWHU YDOXH DPRQJ XVHUV KHOSLQJ WR LQVXUH LW LV VXVWDLQHG IRU JHQHUDWLRQV WR FRPH 7KH 8QLYHUVLW\ RI 7H[DV DW 6DQ $QWRQLR

)RU D SODFH DV ULFK LQ KLVWRU\ DQG FXOWXUDO GLYHUVLW\ DV &ROyQ SUHVHUYDWLRQ RI ODQGVFDSHV UHÁHFWLQJ WKDW ULFKQHVV LV LPSHUDWLYH WR WKH IXWXUH VXFFHVV RI &ROyQ DQG VKRXOG QRW EH RYHUORRNHG 7KH FROOHFWLYH PDQLIHVWDWLRQ RI KXPDQLW\·V LPSDFW RQ &ROy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

&DWKHGUDO RI WKH ,PPDFXODWH &RQFHSWLRQ RI 0DU\ LQ &ROyQ


'(),1,1* &8/785$/ /$1'6&$3(6 'LVFXVVLRQV VXUURXQGLQJ FXOWXUDO ODQGVFDSH UHVLOLHQFH EHJLQV ZLWK D EHWWHU XQGHUVWDQGLQJ RI ZKDW FRQVWLWXWHV D ´FXOWXUDO ODQGVFDSHµ DQG PRUH LPSRUWDQWO\ KRZ WKH FRQFHSW RI ODQGVFDSH LV GHÀQHG )RU WKH SXUSRVHV RI WKLV OLWHUDWXUH UHYLHZ WKH FRQFHSW WKDW ´ODQGVFDSH HQFRPSDVVHV PRUH WKDQ DQ DUHD RI ODQG ZLWK D FHUWDLQ XVH RU IXQFWLRQµ LV D FRUH VHQWLPHQW $QWURS 7KLV GHÀQLWLRQ FRQVLGHUV ODQGVFDSH DV D ´KROLVWLF HQWLW\ SHUFHLYHG E\ KXPDQV DQG KDYLQJ D GLVWLQFW FKDUDFWHU RU LGHQWLW\´ 7KH LGHD RI ´ODQGVFDSHV LV IXUWKHU UHÀQHG E\ 0DWV :LGJUHQ DV WKH ´FRPSOH[ LQWHUDFWLRQ

&RPELQHG ZRUNV RI QDWXUH DQG RI PDQ DUH LOOXVWUDWLYH RI WKH HYROXWLRQ RI KXPDQ VRFLHW\ DQG VHWWOHPHQW RYHU WLPH 6RFLDO HFRQRPLF FXOWXUDO DQG QDWXUDO IRUFHV DOO GLFWDWH WKH SK\VLFDO PDQLIHVWDWLRQ RI FXOWXUDO ODQGVFDSHV

EHWZHHQ KXPDQ LGHDV VRFLDO VWUXFWXUHV DQG WKH SK\VLFDO IHDWXUHV RI WKH KXPDQ HQYLURQPHQW LQ ZKLFK QDWXUDO IRUFHV DQG KXPDQ DJHQF\ DUH LQH[WULFDEO\ HQWZLQHGµ :LGJUHQ 7KLV HQFRXUDJHV WKH LGHD WKDW FXOWXUH DQG KXPDQ HQJDJHPHQW ZLWK ODQGVFDSHV DUH H[WUHPHO\ VLJQLÀFDQW DQG LQ VRPH ZD\V LQVHSDUDEOH 7KLV FRQFHSW LV LPSRUWDQW QRW RQO\ WR WKH GHYHORSPHQW RI ODQGVFDSHV EXW WR WKH SUHVHUYDWLRQ RI WKRVH FRQVLGHUHG WR KDYH FXOWXUDO YDOXH

6HFRQG &LW\ /,7(5$785( 5(9,(:

3UHVHUYLQJ ODQGVFDSHV LQHYLWDEO\ SURPRWHV WKH VDIHJXDUGLQJ RI FXOWXUDO DQG QDWXUDO KHULWDJH XOWLPDWHO\ OHDGLQJ WR WKH FRQFHSW RI FXOWXUDO ODQGVFDSHV $QWURS $FFRUGLQJ WR 81(6&2 FXOWXUDO ODQGVFDSHV UHSUHVHQW WKH &RPELQHG ZRUNV RI QDWXUH DQG RI PDQ DQG DUH LOOXVWUDWLYH RI WKH HYROXWLRQ RI KXPDQ VRFLHW\ DQG VHWWOHPHQW RYHU WLPH 6RFLDO HFRQRPLF FXOWXUDO DQG QDWXUDO IRUFHV DOO GLFWDWH WKH SK\VLFDO PDQLIHVWDWLRQ RI FXOWXUDO ODQGVFDSHV 3OLHQLQJHU DQG %LHOLQJ :LGJUHQ

&XOWXUDO ODQGVFDSHV RIWHQ SRVVHVV KLVWRULFDO VLJQLÀFDQFH EDVHG RQ DFWLYLWLHV SHRSOH RU HYHQWV UDQJH LQ VFDOH DQG DUH RIWHQ FRQVLGHUHG ZRUNV RI DUW WKDW FRQWDLQ H[SUHVVLYH FXOWXUDO QDUUDWLYHV $QWURS 7KLV GLYHUVLW\ DPRQJ FXOWXUDO ODQGVFDSHV KDV FUHDWHG D VHULHV RI VXE GLYLVLRQV ZLWKLQ WKH FDWHJRU\ 7KH &XOWXUDO /DQGVFDSH )RXQGDWLRQ 7&/) KDV FODVVLÀHG FXOWXUDO ODQGVFDSHV LQWR GLIIHUHQW W\SHV ‡ 'HVLJQHG /DQGVFDSH ² D ODQGVFDSH WKDW ZDV FRQVFLRXVO\ GHVLJQHG RU ODLG RXW E\ D ODQGVFDSH DUFKLWHFW PDVWHU JDUGHQHU DUFKLWHFW RU KRUWLFXOWXULVWV DFFRUGLQJ WR GHVLJQ SULQFLSOHV RU DQ DPDWHXU JDUGHQHU ZRUNLQJ LQ D UHFRJQL]HG VW\OH RU WUDGLWLRQ ‡ 9HUQDFXODU /DQGVFDSH ² D ODQGVFDSH WKDW HYROYHG WKURXJK XVH E\ WKH SHRSOH ZKRVH DFWLYLWLHV RU RFFXSDQF\ VKDSHG


SK\VLFDO FRQVWUDLQWV DQG RU RSSRUWXQLWLHV SUHVHQWHG E\ WKHLU QDWXUDO HQYLURQPHQW DQG E\ VXFFHVVLYH VRFLDO HFRQRPLF DQG FXOWXUDO IRUFHV ERWK H[WHUQDO DQG LQWHUQDOµ 5|VVOHU PDNLQJ WKHLU YDOXH DQ LQFDOFXODEOH FXOPLQDWLRQ RI WKH KXPDQ LPSULQW RQ HDUWK

WKDW ODQGVFDSH 7KURXJK VRFLDO RU FXOWXUDO DWWLWXGHV RI DQ LQGLYLGXDO IDPLO\ RU D FRPPXQLW\ WKH ODQGVFDSH UHÁHFWV WKH SK\VLFDO ELRORJLFDO DQG FXOWXUDO FKDUDFWHU RI WKRVH HYHU\GD\ OLYHV +LVWRULF 6LWH ² D ODQGVFDSH VLJQLÀFDQW IRU LWV DVVRFLDWLRQ ZLWK D KLVWRULF HYHQW DFWLYLW\ RU SHUVRQ (WKQRJUDSKLF /DQGVFDSH ² D ODQGVFDSH FRQWDLQLQJ D YDULHW\ RI QDWXUDO DQG FXOWXUDO UHVRXUFHV WKDW WKH DVVRFLDWHG SHRSOH GHÀQH DV KHULWDJH UHVRXUFHV 7&/) &ROyQ·V FXOWXUDO KLVWRULF DQG HFRQRPLF FRQWULEXWLRQ WR 3DQDPi DOORZ LW WR EH FODVVLÀHG ZLWKLQ DQ\ RI WKHVH FDWHJRULHV :KLFKHYHU ZD\ FXOWXUDO ODQGVFDSHV DUH GLVWLQJXLVKHG WKH\ DOO VKDUH D FRPPRQ WKUHDG 7KH\ DUH D IRUP RI QDWXUDO DQG KXPDQ FDSLWDO DQG DUH WKH LQWHOOHFWXDO SURSHUW\ RI KXPDQLW\ WKDW VKRXOG EH SUHVHUYHG LQ DQ HIIRUW WR PDLQWDLQ FXOWXUDO GLYHUVLW\ LQ D ZRUOG WKDW LV VWHDGLO\ PRYLQJ WRZDUGV JOREDOL]DWLRQ 7&/) &XOWXUDO ODQGVFDSHV DUH ´LQÁXHQFHG E\ WKH

+RZHYHU ODQGVFDSHV DUH LQKHUHQWO\ FRXQWHU LQWXLWLYH WR WKH FRQFHSW RI VXVWDLQDELOLW\ EHFDXVH WKH\ DUH LQ D FRQVWDQW VWDWH RI ÁX[ 5RVHODQG /DQGVFDSHV HYHQ FXOWXUDO RQHV WUDQVIRUP ERWK RUJDQLFDOO\ WKURXJK WKLQJV VXFK DV FOLPDWH VKLIW DQG IRUFHIXOO\ EHFDXVH RI WKLQJV OLNH GHYHORSPHQW 3OLHQLQJHU DQG %LHOLQJ 1HYHUWKHOHVV UHVLOLHQF\ RI FXOWXUDO ODQGVFDSHV FDQ EH UHLQIRUFHG E\ GHVLJQLQJ PDLQWDLQLQJ DQG GHYHORSLQJ ODQGVFDSHV VR WKDW WKH\ DUH DGDSWDEOH &UHDWLQJ XQGHUVWDQGLQJ RI WKH KLVWRULFDO DQG FXOWXUDO VLJQLÀ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


,03257$1&( 2) &8/785$/ /$1'6&$3(6 3URWHFWLRQ RI FXOWXUDO ODQGVFDSHV LV LQWHJUDO WR WKH VXUYLYDO RI D FLWLHV OLNH &ROyQ EHFDXVH RI WKHLU DELOLW\ WR KHOS PDLQWDLQ WKH FXVWRPV DQG FXOWXUDO SUDFWLFHV DVVRFLDWHG ZLWK WKH ODQGVFDSH 3OLHQLQJHU DQG %LHOLQJ µ7KH FXOWXUDO ODQGVFDSH HPERGLHV WKH OLIH YDOXHV RI WKH SHRSOH ZKR ZRUN LW DQG IRU ZKRP LW LV KRPHODQGµ .U]\ZLQVNL (QFRXUDJLQJ KXPDQ DZDUHQHVV DQG HQJDJHPHQW ZLWK WKH G\QDPLVP RI HYROYLQJ ODQGVFDSHV 1DYHK 3OLHQLQJHU DQG %LHOLQJ 7KH SUHVHUYDWLRQ RI KHULWDJH LV RQO\ RQH RI WKH JXLGLQJ FRQFHSWV EHKLQG WKH LPSRUWDQFH RI PDLQWDLQLQJ FXOWXUDO ODQGVFDSHV &XOWXUDO ODQGVFDSHV DOVR SRVVHVV HFRQRPLF YDOXH +LVWRULF VLWHV EHQHÀW JUHDWO\ IURP WKH SURWHFWLQJ RI WKHLU FXOWXUDO ODQGVFDSHV WKDQNV LQ ODUJH WR WRXULVP 7RXULVP LV D PXOWL PLOOLRQ GROODU UHYHQXH VWUHDP LQ 3DQDPi &ROyQ·V KLVWRU\ DQG ZHDOWK RI FXOWXUDO GLYHUVLW\ UHÁHFWHG LQ LWV ODQGVFDSHV LI PDLQWDLQHG DUH DQ DPHQLW\ WKDW ZLOO DWWUDFW WRXULVW :LWK WKH ULVH LQ SRSXODULW\ RI HFR WRXULVP LQ 3DQDPi WKH UROH RI FXOWXUDO ODQGVFDSHV ZLOO EHFRPH HYHQ PRUH VLJQLÀFDQW +LVWRULF VLWHV HQKDQFH WRXULVP RSSRUWXQLW\ E\ FDWHULQJ WR WKH WRXULVW ZKR LV LQ VHDUFK RI WKH ¶DXWKHQWLF· WRXULVP H[SHULHQFH &XOWXUDO ODQGVFDSHV ZKLFK DUH UHYHUHG IRU WKHLU DELOLW\ WR KHOS PDLQWDLQ ORFDO FXOWXUDO SUDFWLFHV SURYLGH WKH RSSRUWXQLW\ IRU FXOWXUDO H[FKDQJH DPRQJ JXHVWV DQG ORFDOV

6HFRQG &LW\ /,7(5$785( 5(9,(:


+LVWRULF IRUWV RI 3RUWREHOR

'(),1,1* 5(6,/,(1&( 7KH WHUP UHVLOLHQFH ZDV ÀUVW LQWURGXFHG LQ WKH FRQWH[W RI VXVWDLQDELOLW\ E\ & 6 +ROOLQJ 5RVHODQG D QDWXUDO VFLHQWLVW +ROOLQJ·V LQVLVW WKDW UHVLOLHQFH UHIHUV WR ´D V\VWHP ZKRVH VWDWH RI HTXLOLEULXP LV LQ IDFW FKDUDFWHUL]HG E\ WKUHVKROGV XQFHUWDLQW\ DQG SHULRGV RI JUDGXDO FKDQJH LQWHUVSHUVHG ZLWK SHULRGV RI UDSLG FKDQJHµ 5HGPDQ DQG .LQ]LJ +RZHYHU D PRUH UHOHYDQW GHÀQLWLRQ UHIHUV WR UHVLOLHQFH DV ´WKH FDSDFLW\ RI D V\VWHP WR DEVRUE GLVWXUEDQFH DQG UHRUJDQL]H ZKLOH XQGHUJRLQJ FKDQJH VR DV WR VWLOO UHWDLQ HVVHQWLDOO\ WKH VDPH IXQFWLRQ VWUXFWXUH LGHQWLW\ DQG IHHGEDFNVµ :DONHU HW DO 8QGHUVWDQGLQJ D SODFH·V FDSDFLW\ IRU UHVLOLHQFH EHFRPHV LQFUHDVLQJO\ PRUH UHOHYDQW ZKHQ GLVFXVVLQJ VXVWDLQDELOLW\ $OWKRXJK VXVWDLQDELOLW\ DQG UHVLOLHQF\ DUH IXQGDPHQWDOO\ WKH VDPH ² VXVWDLQDELOLW\ LV D PXFK EURDGHU WRSLF ´HQFRPSDVV>LQJ@ DOO W\SHV RI WUDQVLWLRQV DQG FKDQJHVµ 5RVHODQG 5HVLOLHQFH RQ WKH RWKHU KDQG KDV D PRUH VSHFLÀHG IRFXV WKDW UHIHUHQFHV D SODFH·V ´FDSDFLW\ WR DEVRUE VKRFNV DQG VWLOO PDLQWDLQ IXQFWLRQµ 5RVHODQG

7KHUHIRUH LQ RUGHU WR PDNH JUHDWHU VWULGHV WRZDUGV VXVWDLQDEOH OLYLQJ WKH GHVLJQ LPSOHPHQWDWLRQ DQG SUHVHUYDWLRQ RI V\VWHPV ERWK QDWXUDO DQG PDQ PDGH VKRXOG WDNH LQWR FRQVLGHUDWLRQ WKH V\VWHP·V DELOLW\ WR ERXQFH EDFN IURP GLVWXUEDQFH 5HVLOLHQFH LQFOXGHV D FRQFHUQ IRU UHQHZDO UH RUJDQL]DWLRQ DQG GHYHORSPHQW ZKLFK LQ WKH SDVW KDV EHHQ D OHVVHU IRFXV ZLWKLQ WKH UHDOP RI VXVWDLQDELOLW\ 5RVHODQG ,W LV LPSHUDWLYH WR QRWH WKDW RQO\ ´RQFH FHUWDLQ WKUHVKROGV DUH H[FHHGHG SURIRXQG FKDQJHV RFFXU PDNLQJ UHRUJDQL]DWLRQ QHFHVVDU\µ 3OLHQLQJHU DQG %LHOLQJ 7KLV IRUFHV WKH UH HYDOXDWLRQ RI D ODQGVFDSH·V DELOLWLHV WR ZLWKVWDQG VKRFN DQG FRQWLQXH WR SHUIRUP LWV VDPH IXQFWLRQ $QDO\VLV RI UHVLOLHQFH RIIHUV WKH RSSRUWXQLW\ WR LQYHVWLJDWH DGDSWDELOLW\ DQG WKH ´G\QDPLFV RI FKDQJHµ 3OLHQLQJHU DQG %LHOLQJ +RZHYHU GLVWXUEDQFH GRHV RIIHU WKH RSSRUWXQLW\ IRU UHQHZDO DQG LQQRYDWLRQ $GDSWDELOLW\ QRW RQO\ LQ GHVLJQ EXW LQ HYDOXDWLRQ DQG UHVWRUDWLRQ RI ODQGVFDSHV FRQWDLQLQJ FXOWXUDO VLJQLÀFDQFH LV NH\ WR WKH SURFHVV RI HPEHGGLQJ UHVLOLHQF\ VWUDWHJLHV LQWR QHZ DQG H[LVWLQJ VLWHV


&8/785$/ /$1'6&$3( 5(6,/,(1&( 7+(25< 7KH FRPELQHG WKHRULHV RI ´UHVLOLHQFHµ DQG ´FXOWXUDO ODQGVFDSHVµ LV D UHODWLYHO\ QHZ SHUVSHFWLYH $OWKRXJK PXFK UHVHDUFK KDV EHHQ FRQGXFWHG RQ WKHVH DUHDV LQGLYLGXDOO\ WKH FXOPLQDWLRQ RI WKHVH WZR UHVHDUFK WRSLFV 3OLHQLQJHU DQG %LHOLQJ KDV \HW WR EH H[SORUHG LQ GHSWK $FFRUGLQJ WR 5HVLOLHQFH DQG WKH &XOWXUDO /DQGVFDSH 8QGHUVWDQGLQJ DQG 0DQDJHPHQW LQ +XPDQ 6KDSHG (QYLURQPHQWV DXWKRU \HDU FRPELQLQJ FXOWXUDO ODQGVFDSH SUHVHUYDWLRQ ZLWK UHVLOLHQF\ WKHRU\ ZLOO ´DSSHDO WR DQ\RQH LQWHUHVWHG LQ DQDO\]LQJ DQG PDQDJLQJ FKDQJH LQ KXPDQ VKDSHG HQYLURQPHQWV LQ WKH FRQWH[W RI VXVWDLQDELOLW\µ 8UEDQLVP DQG HYHQ PRUH VSHFLÀFDOO\ UDSLG XUEDQL]DWLRQ KDYH FRQWULEXWHG WR WKH PXFK QHHGHG PDQDJHPHQW RI HYROYLQJ ODQGVFDSHV DV WKH\ DUH HYROYLQJ DW D PXFK PRUH UDSLG SDFH WKDQ HYHU EHIRUH 7KLV LV WKUHDWHQLQJ WKH ELRGLYHUVLW\ DQG VWDELOLW\ RI RXU ODQGVFDSHV WKURXJK VKRUW VLWHG GHYHORSPHQW SURFHVVHV

7KH FXOWXUDO LQWHJULW\ RI ODQGVFDSHV WKDW SRVVHVV KLVWRULF VLJQLÀFDQFH PXVW EH PDLQWDLQHG DQG PDQDJHG LQ D ZD\ WKDW DOORZV IRU WKH DGDSWDELOLW\ RI UHVLOLHQFH WKHRU\ $WWHPSWV WR PHDVXUH WKH UHVLOLHQFH RI FXOWXUDO ODQGVFDSHV KDYH UHFHQWO\ EHHQ XQGHUWDNHQ 7KHVH PHDVXUHPHQWV LQFOXGHG KLJKOLJKWLQJ D IHZ PDMRU LQGLFDWRUV VXFK DV ´WKH SUHVHQFH RI FRPPXQLW\ EDVHG LQVWLWXWLRQV ORFDO NQRZOHGJH RQ QDWXUDO UHVRXUFHV DFFHVV WR DQG XVH RI WUDGLWLRQDO FURSV YDULHWLHV DQG EUHHGV RSHQQHVV WR LQQRYDWLRQ IRRG VRYHUHLJQW\ DQG WKH GHJUHH RI KHWHURJHQHLW\ DQG PXOWL IXQFWLRQDOLW\ LQ WKH ODQGVFDSHµ 5RVHODQG 7KHVH PHDVXUHPHQWV JLYH LQVLJKW LQWR WKH DELOLW\

6HFRQG &LW\ /,7(5$785( 5(9,(:

RI D ODQGVFDSH WR ZLWKVWDQG GUDVWLF FKDQJH DQG WKH SUHVHQFH RI VLJQLÀFDQW FXOWXUDO DPHQLWLHV &XOWXUDO ODQGVFDSH UHVLOLHQFH WKHRU\ LV SULPDULO\ LQ WKH K\SRWKHVLV SKDVH RI LWV UHVHDUFK HQGHDYRUV 5HVLOLHQF\ ZLWK UHJDUGV WR ODQGVFDSHV V\VWHPV LV GLIÀFXOW WR DFKLHYH RU HYHQ HQVXUH EHFDXVH ODQGVFDSHV DUH FRQVWDQWO\ FKDQJLQJ '\QDPLF ODQGVFDSHV V\VWHPV FRQWDLQ FRXQWOHVV YDULDEOHV WKDW DIIHFW FKDQJH PDNLQJ PDQDJLQJ WKHP GLIÀFXOW $OWKRXJK QR FOHDU GHÀ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ÁXHQFH RI VRFLDO HFRORJLFDO FKDQJH &XOWXUDO ODQGVFDSHV KRZHYHU DUH FULWLTXHG IRU WKHLU LQDELOLW\ WR FRQFHGH WR FKDQJH DQG DUH WKHUHIRUH ´SXUHO\ FRQVHUYDWLYH LGHDVµ 7KH SURV IRU H[DPLQLQJ WKHVH WZR HQWLWLHV WRJHWKHU LV WR ´LPSURYH XQGHUVWDQGLQJ RI WKH XQGHUO\LQJ SURFHVVHVµ WKH ´OLQNV EHWZHHQ UHVLOLHQFH DQG FXOWXUDO ODQGVFDSHV PD\ KHOS UHFDSWXUH ODQGVFDSHV DV WKH SULPDU\ FDUULHUV RI VRFLDO YDOXHV ZKLFK DUH SODFH EDVHG DQG FRQWH[WXDOµ 3OLHQLQJHU DQG %LHOLQJ


+LVWRULF IRUW IURP WKH V LQ 3RU WREHOR 3DQDPi 81(6&2 :RUOG +HULWDJH 6LWH


'HODSLGDWHG LQIUDVWUXFWXUH LQ SUHVHQW GD\ &ROyQ

([DPLQDWLRQ DQG VDIHJXDUGLQJ RI VRFLDO FRQVWUXFWV DUH DOVR DQ LQWHJUDO SDUW RI WKH VXFFHVV RI FXOWXUDOO\ VXVWDLQDEOH FLWLHV $ GHHSHU XQGHUVWDQGLQJ RI WKH SHRSOH ZKR DUH FRQQHFWHG QRW MXVW KLVWRULFDOO\ EXW VRFLR FXOWXUDOO\ WR WKHVH VLJQLÀFDQW ODQGVFDSHV DOORZV IRU GHYHORSPHQW WKDW LV FRQWH[WXDO DQG LQFOXVLYH ,Q IDFW ´WKH WHUP ¶FRPPXQLW\· UHIHUV WR D JURXS RI SHRSOH ERXQG E\ JHRJUDSK\ ZLWK D VKDUHG GHVWLQ\µ 5RVHODQG

6HFRQG &LW\ /,7(5$785( 5(9,(:


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·V LGHQWLW\ SUHYHQW WKH VWDQGDUGL]DWLRQ RI VXVWDLQDEOH FRPPXQLW\ GHYHORSPHQW SODQV


6HFRQG &LW\ /,7(5$785( 5(9,(:


7KHUH LV QR RQH VSHFLÀF VROXWLRQ RU ´YLVLRQµ IRU DFFRPSOLVKLQJ VXVWDLQDEOH FRPPXQLW\ GHYHORSPHQW 7KH FRPSOH[LW\ RI FKDOOHQJHV WKDW IDFH DQ\ RQH FRPPXQLW\ DUH H[FOXVLYH WR WKDW FRPPXQLW\·V QHHGV DQG GHVLUHV ´(DFK FRPPXQLW\ PXVW GHYHORS LWV RZQ YLVLRQ DQG SODQ RI DFWLRQµ 6ZLVKHU DQG 0RQDJKDQ +RZHYHU WKHUH DUH VKDUHG FRQFHUQV DPRQJ VXVWDLQDEOH FRPPXQLWLHV 7KHVH FRQFHUQV LQFOXGHG EXW PD\ QRW EH OLPLWHG WR ´HFRQRPLF VHFXULW\ HQYLURQPHQWDO SURWHFWLRQ VRFLDO MXVWLFH DQG D FRPPLWPHQW WR WKH ZHOIDUH RI IXWXUH JHQHUDWLRQVµ 7KH 8QLYHUVLW\ RI 7H[DV DW 6DQ $QWRQLR

7KH GHYHORSPHQW RI VXVWDLQDEOH FRPPXQLWLHV FDQ EH D ZD\ WKURXJK ZKLFK KHULWDJH LV SUHVHUYHG EXW VXVWDLQDEOH FRPPXQLWLHV DOVR SUHVHUYH D QXPEHU RI RWKHU WKLQJV WKDW FRQWULEXWH WR JUHDWHU TXDOLW\ RI OLIH $FFRUGLQJ WR WKH 8QLYHUVLW\ RI )ORULGD VXVWDLQDEOH FRPPXQLWLHV DUH ‡ (QYLURQPHQWDOO\ 6RXQG 'HFLVLRQ PDNLQJ IRFXVHV RQ UHGXFLQJ WKH LPSDFWV RI SRSXODWLRQ JURZWK DQG GHYHORSPHQW RQ QDWXUDO UHVRXUFHV DQG WKH HQYLURQPHQW ‡ (FRQRPLFDOO\ 3URGXFWLYH &RPPXQLW\ PHPEHUV PDNH ORFDO FDSLWDO LQYHVWPHQWV WKDW ZLOO VXVWDLQ ORFDO KXPDQ DQG QDWXUDO UHVRXUFHV DQG \LHOG DGHTXDWH ÀQDQFLDO UHWXUQV WR WKRVH LQYHVWPHQWV ‡ 6RFLDOO\ -XVW (TXLWDEOH DFFHVV WR UHVRXUFHV DQG GHFLVLRQ PDNLQJ SURFHVVHV IRVWHU WKH GLVWULEXWLRQ RI IRRGV DQG EHQHÀWV DFURVV DOO VHFWRUV WR WKH FRPPXQLW\

7KHVH TXDOLWLHV DUH WKH IRXQGDWLRQ RI VXVWDLQDEOH FRPPXQLW\ GHYHORSPHQW

´6XVWDLQDEOH GHYHORSPHQW UHTXLUHV IXQGDPHQWDO HFRQRPLF DQG VRFLDO FKDQJH WR LPSURYH KXPDQ ZHOO EHLQJ ZKLOH UHGXFLQJ WKH QHHG IRU HQYLURQPHQWDO SURWHFWLRQ ,Q VXP VXVWDLQDEOH GHYHORSPHQW PXVW EH D GLIIHUHQW NLQG RI GHYHORSPHQW ,W PXVW EH D SURDFWLYH VWUDWHJ\ WR GHYHORS VXVWDLQDELOLW\ µ

5RVHODQG

6XVWDLQDEOH FRPPXQLW\ GHYHORSPHQW LV D YHU\ ODUJH WRSLF WKDW HQFRPSDVVHV D PXOWLWXGH RI VWUDWHJLHV DQG VXEWRSLFV 1HZ 8UEDQLVP 6PDUW *URZWK DQG 7UDQVLW 2ULHQWHG 'HYHORSPHQW 72' DUH DOO SRWHQWLDO VWUDWHJLHV WKDW VXSSRUW VXVWDLQDEOH GHYHORSPHQW 6XVWDLQDEOH GHYHORSPHQW H[DPLQHV DOO IDFHWV RI D FRPPXQLW\·V FUHDWLRQ DQG OLYHOLKRRG VHZDJH DQG ZDWHU IRRG VHFXULW\ UHF\FOLQJ HQHUJ\ HIÀFLHQF\ WUDQVSRUWDWLRQ SROLF\ FOLPDWH FKDQJH HFRQRPLF GHYHORSPHQW KRXVLQJ DQG FRPPXQLW\ GHYHORSPHQW DQG ODQG XVH XUEDQ IRUP DQG FRPPXQLW\ GHVLJQ 7KHVH ´EXLOGLQJ EORFNVµ 5RVHODQG DUH DOO LPSRUWDQW WR WKH FRQVWUXFWLRQ RI D VROLG IRXQGDWLRQ RQ ZKLFK VXVWDLQDEOH GHYHORSPHQW VKRXOG EH EXLOW


7KH H[WUHPH LQFRPH GLVSDULW\ EHWZHHQ &ROyQ DQG 3DQDPi &LW\ GHVSLWH WKH FRQVLVWHQW HFRQRPLF JURZWK RI WKH FRXQWU\ DQG LWV VXUURXQGLQJ WUDGLQJ SDUWQHUV IRUFHV WKH H[DPLQDWLRQ RI VWUDWHJLHV WKDW PD\ EH FDWDO\VW IRU IXWXUH HFRQRPLF JURZWK ZLWKLQ WKH FLW\ 7ZR VWUDWHJLHV VSHFLÀFDOO\ WKDW KDYH EHHQ NQRZQ WR VSDUN HPSOR\PHQW UDWHV DQG FUHDWH ORZ FRVW EHQHÀWV IRU FLWLHV DUH VXVWDLQDEOH WRXULVP DQG DGDSWLYH UHXVH 6HYHQW\ ÀYH WR HLJKW\ SHUFHQW RI 3DQDPi·V *URVV 'RPHVWLF 3URGXFW *'3 LV EURXJKW LQWR WKH FRXQWU\ WKURXJK ZRUN LQ WKH VHUYLFH VHFWRU $ ODUJH SHUFHQWDJH RI WKDW VHUYLFH VHFWRU LV WRXULVP EDVHG 2YHU FUXLVH VKLSV SDVV WKURXJK 3DQDPi \HDUO\

6HFRQG &LW\ /,7(5$785( 5(9,(:


(QJLQHHULQJ ZRQGHUV OLNH WKH 3DQDPi &DQDO EULQJ LQ ELOOLRQV RI GROODUV LQ LPSRUWV H[SRUWV DQG WKRXVDQGV RI WRXULVW 3DQDPi KDV EHHQ OLVWHG DV D 81(6&2 :RUOG +HULWDJH %LRVSKHUH 5HVHUYH PDUNLQJ LW DV RQH RI WKH PRVW ELRGLYHUVH UHJLRQV LQ WKH ZRUOG &RQVHUYDWLRQ HIIRUWV EDVHG RQ 3DQDPi·V ELRGLYHUVLW\ KDYH VSLNHG LQWHUHVW LQ VXVWDLQDEOH DQG HFR WRXULVP ,QFUHDVHG LQYHVWPHQW LQ VXVWDLQDEOH WRXULVP SUDFWLFHV FRXOG SURYLGH D QXPEHU RI MREV DQG LPSURYH SHUFHSWLRQV RI &ROyQ $GDSWLYH UHXVH RI KLVWRULF VWUXFWXUHV LV D VXSSRUWHG LQLWLDWLYH LQ VXVWDLQDEOH WRXULVP 7KLV ZLOO HQKDQFH WKH FXOWXUDO DQG QDWXUDO FDSLWRO LQ &ROyQ DGGLQJ DQRWKHU OD\HU WR WKH H[LVWLQJ WRXULVP PDUNHW DQG HQKDQFLQJ WKH HFRQRPLF SRVVLELOLWLHV ZLWKLQ WKH FLW\ (FRQRPLF YLEUDQF\ SURPRWHV D KHDOWK\ PL[WXUH RI ORFDO GRPHVWLF DQG LQWHUQDWLRQDO EXVLQHVV RSSRUWXQLWLHV KRXVLQJ RSWLRQV WRXULVP DPHQLWLHV DQG FLW\ VHUYLFHV ,I UHYLWDOL]DWLRQ LV WR WDNH SODFH LQ &ROyQ HFRQRPLF UHGHYHORSPHQW LV QHFHVVDU\ ,QFUHDVHG RSSRUWXQLWLHV HPSOR\PHQW DQG YRFDWLRQDO HGXFDWLRQ DUH NH\ FRPSRQHQWV RI HFRQRPLF YLEUDQF\ KRSHIXOO\ LQFUHDVLQJ WKH TXDOLW\ RI OLIH IRU WKH FLWL]HQV RI &ROyQ

3DQDPD 5DLOZD\ &RQWDLQHU <DUG


7KH FLW\ RI &ROyQ SRVVHVV D YDVW DUUD\ RI KLVWRULF DUFKLWHFWXUDO VW\OHV WKDW DUH D UHÁHFWLRQ RI WKH FLW\·V GHYHORSPHQW .XUW 'LOORQ DQ $PHULFDQ DUFKLWHFW ZRUNLQJ LQ 3DQDPD KDV VHHQ WKH YDOXH LQ WKH IRUPV H[LVWLQJ LQ &ROyQ &ROODERUDWLQJ ZLWK WKH :RUOG 0RQXPHQW )XQG 'LOORQ·V DUFKLWHFWXUH ÀUP ZHQW LQWR WKH FLW\ RI &ROyQ WR EHJLQ LQYHQWRU\ RI DOO WKH H[LVWLQJ KLVWRULF EXLOW IRUP ZLWK WKH LQWHQW RI GHYHORSLQJ D UHYLWDOL]DWLRQ SODQ IRU WKH FLW\·V VWUXFWXUHV ZPI RUJ 7KH FRORQQDGH VWUHHWV RI &ROyQ KDYH D FKDUDFWHU WKDW LV H[FOXVLYH WR WKH FLW\ DQG FUXFLDO WR LWV KLVWRU\

´:H FDQ VHL]H WKLV XQLTXH PRPHQW LQ WLPH UHFODLPLQJ WKH KLJK JURXQG RI WKH EXLOW HQYLURQPHQW DQG UHEXLOGLQJ RXU ORFDO FRPPXQLWLHV µ 'DYHQSRUW

5HVWRUDWLRQ RI WKHVH KLVWRULF VLWHV LV D FRPPHQGDEOH XQGHUWDNLQJ KRZHYHU WKH\ PXVW EH JLYHQ D QHZ XVH VR WKDW WKH\ GR QRW EHFRPH QHJOHFWHG RQFH PRUH $GDSWLYH UHXVH RIIHUV D SRWHQWLDO VROXWLRQ WR WKH QHJOHFWHG LQIUDVWUXFWXUH RI &ROyQ DQG WKH OHVV WKDQ YLEUDQW HFRQRP\ $GDSWLYH UHXVH LV UHIHUUHG WR DV ´WKH SURFHVV RI UHXVLQJ

6HFRQG &LW\ /,7(5$785( 5(9,(:

DQ ROG VLWH RU EXLOGLQJ IRU D SXUSRVH RWKHU WKDQ WKDW IRU ZKLFK LW ZDV EXLOW RU GHVLJQHG· :LNLSHGLD 7KLV LGHD KDV D QXPEHU RI EHQHÀ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



,Q WKH ÀUVW WKUHH PRQWKV RI PLOOLRQ LQ UHYHQXH FDPH LQWR WKH FRXQWU\ RI 3DQDPi IURP WRXULVP $ WZHOYH SHUFHQW LQFUHDVH IURP WKH ÀUVW WKUHH PRQWKV RI 7KH DYHUDJH YLVLWRU LQ 3DQDPD VSHQGV DSSUR[LPDWHO\ GD\V LQ WKH FRXQWU\ DQG VSHQGV D WRWDO RI GROODUV DYHUDJLQJ DURXQG GROODUV SHU GD\ DWS JRE SD 7KH WRXULVP LQGXVWU\ LV RQH RI 3DQDPD·V KLJKHVW JURVVLQJ HQWLWLHV EULQJLQJ ELOOLRQV ZRUWK RI UHYHQXH LQWR WKH FRXQWU\ +RZHYHU GXH WR FRQWLQXHG LQVWDQFHV RI FULPLQDO DFWLYLW\ DQG JHQHUDO VDIHW\ FRQFHUQV &ROyQ LV IDLOLQJ WR EHQHÀW IURP WKH WKULYLQJ WRXULVP LQGXVWU\ WKDW VXUURXQGV LW 7RXULVP ZLWK DOO RI LWV HFRQRPLF EHQHÀWV GRHV KDYH ÁDZV 7RXULVP FDQ WKUHDWHQ WKH KRVW DUHDV HQYLURQPHQWDO LQWHJULW\ FXOWXUDO LQWHJULW\ DQG FDUU\LQJ FDSDFLW\ LI LQGXVWULHV GR QRW SODFH OLPLWDWLRQV RQ FHUWDLQ WRXULVP UHODWHG YHQWXUHV

6XVWDLQDEOH WRXULVP LV DQ DOWHUQDWLYH WKDW LV ULVLQJ WR WKH RFFDVLRQ LQ DQ HIIRUW WR KHOS PLWLJDWH PDQ\ RI WKH HQYLURQPHQWDO DQG FXOWXUDO LVVXHV DVVRFLDWHG ZLWK WRXULVP ZKLOVW SURPRWLQJ HFRQRPLF JURZWK 7KHUH DUH D QXPEHU RI WKHRULHV UHJDUGLQJ WKH GHÀQLWLRQ RI VXVWDLQDEOH WRXULVP 1HYHUWKHOHVV LW LV WKH GHÀQLWLRQ SXW IRUWK E\ .ULV (QGUHVHQ WKDW VSHDNV VSHFLÀFDOO\ WR WKH JRDOV RI WKLV SURMHFW 6XVWDLQDEOH WRXULVP DWWHPSWV WR DGGUHVV WKH FKDOOHQJH RI PDQDJLQJ ´WKH IXWXUH JURZWK RI WKH LQGXVWU\ VR DV WR PLQLPL]H LWV QHJDWLYH LPSDFWV RQ WKH HQYLURQPHQW DQG KRVW FRPPXQLWLHV ZKLOVW PD[LPL]LQJ WKH EHQHÀWV LW EULQJV LQ WHUPV RI MREV ZHDOWK DQG VXSSRUW IRU ORFDO FXOWXUH DQG LQGXVWU\ DQG SURWHFWLRQ RI WKH EXLOW DQG QDWXUDO HQYLURQPHQWµ (QGUHVHQ (QGUHVHQ SURPRWHV WKH LGHD WKDW

6HFRQG &LW\ /,7(5$785( 5(9,(:

VXVWDLQDEOH WRXULVP LV D PHDQV WR DFKLHYH V\PELRVHV WKURXJK ´ZHOO PDQDJHG WRXULVPµ HVSHFLDOO\ QHFHVVDU\ LQ FXOWXUDO WRXULVP VLWHV 6XVWDLQDEOH WRXULVP PDQLIHVWHG RXW RI WKH FRQFHSW RI VXVWDLQDEOH GHYHORSPHQW /LNH VXVWDLQDEOH GHYHORSPHQW VXVWDLQDEOH WRXULVP PXVW EH FRQWH[WXDO ,W LV QHFHVVDU\ IRU WKLV W\SH RI WRXULVP WR DGGUHVV WKH KRVW ORFDWLRQ·V XQLTXH FKDOOHQJHV DQG SRWHQWLDO LQ RUGHU WR FDSLWDOL]H RQ WKHP ,W LV KRZHYHU LPSRVVLEOH WR LGHQWLI\ DQ\ WRXULVP WKRXJKWIXOO\ GHVLJQHG RU RWKHUZLVH DV VXVWDLQDEOH <HW DQG VWLOO WKH FRQFHUQV DQG REMHFWLYHV SXW IRUWK E\ VXVWDLQDEOH GHYHORSPHQW DQG VXVWDLQDEOH WRXULVP DUH ZRUWK VWULYLQJ IRU 6XVWDLQDEOH WRXULVP XOWLPDWHO\ ZDQWV WR SURPRWH D XQLYHUVDO DSSURDFK WR WUDYHO WKDW FRQVLGHUV WKH FXOWXUH HFRQRP\ DQG HQYLURQPHQW RI D JLYHQ GHVWLQDWLRQ ,QVNHHS

6XVWDLQDEOH WRXULVP FDQ WDNH PDQ\ IRUPV VXFK DV HFR WRXULVP DQG FXOWXUDO KHULWDJH WRXULVP +RZHYHU FXOWXUDO KHULWDJH WRXULVP VHHPV WR EH WKH PRVW UHOHYDQW WR &ROyQ &XOWXUDO WRXULVP VLWHV OLNH WKRVH H[LVWLQJ LQ &ROyQ PDLQWDLQ FXOWXUDO DQG KLVWRULF DPHQLWLHV IRU WKH HGXFDWLRQ DQG YLVXDO EHQHÀW RI YLVLWRUV 7KLV W\SH RI WRXULVP HQFRXUDJHV WKH ´UHYLYDO RI WUDGLWLRQV DQG WKH UHVWRUDWLRQ RI VLWHV DQG PRQXPHQWVµ WUDQVIRUPLQJ XQGHUXWLOL]HG HOHPHQWV LQ WKH KRVW FRPPXQLW\ LQWR DWWUDFWLRQV WR GULYH WRXULVP (QGUHVHQW &XOWXUDO WRXULVP DOVR KHOSV WR VXSSRUW HQYLURQPHQWDO DQG FRQVHUYDWLRQ FRQFHUQV DV QDWXUDO HQYLURQPHQWV DQG HFRORJLHV DUH FRQVLGHUHG FXOWXUDO FDSLWRO



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

6HFRQG &LW\ /,7(5$785( 5(9,(:


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ÁRRGLQJ DQG LQIUDVWUXFWXUH GDPDJH &ROyQ UHFHLYHV KLJK YROXPHV RI UDLQ WKURXJKRXW WKH \HDU DQG WKLV FDQ EH SUREOHPDWLF GXH WR SHUHQQLDO ÁRRGLQJ 7KLV FDQ GDPDJH H[LVWLQJ LQIUDVWUXFWXUH IRXQGDWLRQV DQG GHVWUR\ KLVWRULF EXLOW IRUP LQ WKH FLW\ 1HYHUWKHOHVV LW LV SRVVLEOH WR KDUQHVV WKH FOLPDWLF FRQGLWLRQV LQ &ROyQ WR WKH FLWLHV DGYDQWDJH WKURXJK FDUHIXO GHVLJQ RI WKH ODQGVFDSH DQG LQFRUSRUDWLQJ JUHHQ LQIUDVWUXFWXUH &ROyQ DOVR IDFHV VRPH FKDOOHQJHV ZLWK LWV FRDVWOLQH 6WRUP VXUJHV WKUHDWHQ WKH FRDVWOLQH RI WKH FLW\ WKURXJK HURVLRQ ÁRRGLQJ DQG GHVWUXFWLRQ RI QHDUE\ EXLOGLQJV %\ DQDO\]LQJ VWUDWHJLHV WR LPSURYH WKH FRDVWDO HGJH RI WKH FLW\ JUHHQ LQIUDVWUXFWXUH FRXOG KHOS PLQLPL]H GDPDJH IURP ZHDWKHU 7KLV ZLOO KHOS SURWHFW H[LVWLQJ UHVRXUFHV DQG LPSURYH HQYLURQPHQWDO FRQGLWLRQV FUHDWLQJ D PRUH VXVWDLQDEOH UHODWLRQVKLS ZLWK WKH HQYLURQPHQW


$1' 7+( *5((1 1(7:25. *UHHQ LQIUDVWUXFWXUH LV GHÀQHG EHVW DV ´DQ LQWHUFRQQHFWHG JUHHQ VSDFH QHWZRUN LQFOXGLQJ QDWXUDO DUHDV DQG IHDWXUHV SXEOLF DQG SULYDWH FRQVHUYDWLRQ ODQGV ZRUNLQJ ODQGV ZLWK FRQVHUYDWLRQ YDOXHV DQG RWKHU SURWHFWHG RSHQ VSDFH WKDW LV SODQQHG DQG PDQDJHG IRU LWV QDWXUDO UHVRXUFH YDOXHV DQG IRU WKH DVVRFLDWHG EHQHÀWV LW FRQIHUV WR KXPDQ SRSXODWLRQVµ %HQHGLFW DQG 0F0DKRQ *UHHQ LQIUDVWUXFWXUH LV D YDVW WRSLF WKDW HQFRPSDVVHV D QXPEHU RI DSSOLFDWLRQV 6WRUP ZDWHU PDQDJHPHQW ÁRRG SUHYHQWLRQ JUH\ ZDWHU ÀOWUDWLRQ ZDWHU KDUYHVWLQJ DQG LUULJDWLRQ DOO IDOO XQGHU WKH FDWHJRU\ RI JUHHQ LQIUDVWUXFWXUH $FFRUGLQJ WR %HQHGLFW DQG 0F0DKRQ WKH RULJLQV RI JUHHQ LQIUDVWUXFWXUH DUH FRQQHFWHG WR WZR IXQGDPHQWDO LQLWLDWLYHV 7KH ÀUVW LV ´SURWHFWLQJ DQG OLQNLQJ SDUNV DQG RWKHU JUHHQ VSDFHV IRU WKH EHQHÀW RI SHRSOH UHFUHDWLRQ KHDOWK DHVWKHWLFV DQG XUEDQ GHVLJQ µ 7KH VHFRQG LQLWLDWLYH LV DERXW ´SUHVHUYLQJ DQG OLQNLQJ QDWXUDO DUHDV WR EHQHÀW ELRGLYHUVLW\ DQG FRXQWHU KDELWDW IUDJPHQWDWLRQ SURWHFWLQJ QDWLYH SODQWV DQLPDOV QDWXUDO SURFHVV DQG HFRV\VWHPV µ %HQHGLFW DQG 0F0DKRQ

,Q DQ HIIRUW WR VWD\ WUXH WR WKH JRDOV DQG REMHFWLYHV FRQQHFWLYLW\ JUHHQ LQIUDVWUXFWXUH DQG FXOWXUDO H[FKDQJH RI

6HFRQG &LW\ /,7(5$785( 5(9,(:

WKLV SURMHFW DQG LQ VXSSRUW RI WKH ODUJHU UHVHDUFK TXHVWLRQ JUHHQ LQIUDVWUXFWXUH ZLOO EH DQDO\]HG SULPDULO\ WKURXJK WKH ÀUVW LQLWLDWLYH PHQWLRQHG ´OLQNLQJ SDUNV DQG RWKHU JUHHQ VSDFHV IRU WKH EHQHÀW RI SHRSOHµ GXH WR WKH SURMHFW·V XUEDQ FRQWH[W &ROyQ·V GHQVH XUEDQ IDEULF DQG SRSXODWLRQ KDYH PDGH UHFUHDWLRQ KHDOWK DQG DHVWKHWLFV ZLWK UHJDUGV WR WKH VDIHW\ DQG ZHOO EHLQJ RI WKH JHQHUDO SXEOLF WKH KLJKHVW SULRULW\ LQ WKLV SURMHFW +RZHYHU WKH REMHFWLYHV RI WKH VHFRQG LQLWLDWLYH ´OLQNLQJ QDWXUDO DUHDV WR EHQHÀW ELRGLYHUVLW\ DQG FRXQWHU KDELWDW IUDJPHQWDWLRQµ FDQ EH DGGUHVVHG LQ MXQFWLRQ ZLWK WKH ÀUVW LQLWLDWLYH LI JUHHQ VSDFH LQ &ROyQ LV LQFUHDVHG HQRXJK WKDW LW DFFRPPRGDWHV IRU XUEDQ ZLOGOLIH :LWKLQ WKH VFRSH RI WKLV SURMHFW WKH WHUP JUHHQ LQIUDVWUXFWXUH ZLOO EH XVHG EURDGO\ WR DFFRXQW IRU WKH QXPHURXV SK\VLFDO IRUPV JUHHQ LQIUDVWUXFWXUH FDQ WDNH +RZHYHU EURDG WKH VFRSH RI JUHHQ LQIUDVWUXFWXUH LV LQ UHJDUGV WR WKLV SURMHFW VRPH RI WKH VWUDWHJLHV UHODWHG WR JUHHQ LQIUDVWUXFWXUH WKDW ZLOO EH XVHG WR LQIRUP GHVLJQ ZLOO EH KLJKOLJKWHG WR SURYLGH D PRUH YLYLG SLFWXUH RI WKH SODQ WR LPSURYH &ROyQ


(FRQRPLF +HDOWK (QHUJ\ HIÀFLHQF\ )ORRG SUHYHQWLRQ DQG LPSURYHG K\GURORJ\ -RE FUHDWLRQ *UHHQZD\V *UHHQ URRIV /LYLQJ :DOOV ² LQWHJUDWH YHJHWDWLRQ LQWR WKH EXLOG IRUP HLWKHU LQWHUQDOO\ RU H[WHUQDOO\ IRU WKH SXUSRVH RI SURYLGLQJ LQFUHDVHG DLU TXDOLW\ ORZHU HQHUJ\ FRQVXPSWLRQ LPSURYLQJ K\GURORJ\ UHGXFH XUEDQ KHDW LVODQG DQG ZHOO DV SURYLGH DQRWKHU DHVWKHWLF TXDOLW\ WR WKH DUFKLWHFWXUH RI D VSDFH 7]RXODV HW DO

%(1(),76 2) *5((1 ,1)5$6785&785( (FRV\VWHP +HDOWK 0LWLJDWH WKH LPSDFW RI KDELWDW IUDJPHQWDWLRQ 3URPRWLQJ SUHVHUYLQJ DQG HQKDQFLQJ HFRV\VWHP GLYHUVLW\ +DELWDWV WKDW DUH VSHFLHV ULFK DQG KHWHURJHQHRXV KDYH D WHQGHQF\ WRZDUGV UHVLOLHQFH +HDOWK\ HFRV\VWHPV SURYLGH D QXPEHU RI HFRV\VWHP VHUYLFHV 7]RXODV HW DO

+XPDQ +HDOWK 7KHUH KDYH EHHQ QXPHURXV VWXGLHV FRQGXFWHG RQ WKH KHDOWK EHQHÀWV RI JUHHQ VSDFH 5HGXFWLRQ RI XUEDQ KHDW LVODQG HIIHFWV ,QFUHDVHG DLU TXDOLW\ 6RPH VWXGLHV KDYH VKRZQ WKH LQÁXHQFH RI SK\VLFDO HQYLURQPHQWV RQ ZDONLQJ 7]RXODV HW DO 5HVLGHQWLDO DUHDV ZLWK RSHQ VSDFH DQG QDWXUDO IHDWXUHV FUHDWH DWWDFKPHQWV WR WKH FRPPXQLW\ DQG LWV UHVLGHQWV

&211(&7,9< ,17(*5$7,21 7KH YLVLRQ RI JUHHQ LQIUDVWUXFWXUH ZDV LQWURGXFHG DV DQ DWWHPSW WR GHYHORS D ´FRKHUHQW SODQQLQJ HQWLW\µ GHVLJQHG WR HOHYDWHG JUHHQ VSDFH V\VWHPV SDUWLFXODUO\ LQ XUEDQ HQYLURQPHQWV %HQHGLFW DQG 0F0DKRQ

$QRWKHU LQWHUSUHWDWLRQ RI JUHHQ LQIUDVWUXFWXUH DQG JUHHQ LQIUDVWUXFWXUH QHWZRUNV ZDV QRWHV WKDW JUHHQ LQIUDVWUXFWXUH ´FDQ EH FRQVLGHUHG WR FRPSULVH RI DOO QDWXUDO VHPL QDWXUDO DQG DUWLÀFLDO QHWZRUNV RI PXOWLIXQFWLRQDO HFRORJLFDO V\VWHPV ZLWKLQ DURXQG DQG EHWZHHQ XUEDQ DUHDV DW DOO VSDWLDO VFDOHV 7KH FRQFHSW RI *UHHQ ,QIUDVWUXFWXUH HPSKDVL]HV WKH TXDOLW\ DV ZHOO DV TXDQWLW\ RI XUEDQ DQG SUH XUEDQ JUHHQ VSDFHVµ 7XUQHU 5XGOLQ DQG )DON 7KLV IRFXV RQ WKH XUEDQ LPSOLFDWLRQV RI JUHHQ LQIUDVWUXFWXUH LV SHUVLVWHQWO\ UHOHYDQW ZKHQ GLVFXVVLQJ WKH IXWXUH RI JUHHQ LQIUDVWUXFWXUH LQ &ROyQ *UHHQ LQIUDVWUXFWXUH LQ WKH XUEDQ FRQWH[W KDV WKH DELOLW\ WR FUHDWH RSSRUWXQLWLHV IRU LQWHJUDWLRQ EHWZHHQ KXPDQ DQG QDWXUDO V\VWHPV 7]RXODV HW DO ,I ´SURDFWLYHO\ SODQQHG GHYHORSHG DQG PDLQWDLQHG JUHHQ LQIUDVWUXFWXUH FDQ DOVR ERRVW HFRQRPLF JURZWK DQG DLG LQ QDWXUH FRQVHUYDWLRQ 7]RXODV HW DO


6HFRQG &LW\ /,7(5$785( 5(9,(:


$ JUHHQ LQIUDVWUXFWXUH QHWZRUN LV DQ RUJDQL]DWLRQ RI ´KXEVµ ´OLQNVµ DQG ´VLWHVµ WKDW FRQQHFWV HFRV\VWHPV ODQGVFDSHV DQG SHRSOH %HQHGLFW DQG 0F0DKRQ +XEV SURYLGH DQFKRU SRLQWV ZLWKLQ D JUHHQ LQIUDVWUXFWXUH QHWZRUN 7KHVH DUH VSDFHV WKDW RIIHU D GHVWLQDWLRQ IRU ZLOGOLIH SHRSOH DQG HFRORJLFDO SURFHVV /LQNV IXQFWLRQ DV WKH FRQQHFWLRQV WKDW MRLQ WKH QHWZRUN WRJHWKHU 7KH LPSRUWDQFH RI WKHVH OLQNDJHV DUH FUXFLDO WR WKH KHDOWK DQG GLYHUVLW\ RI ZLOG OLIH DQG HFRORJLFDO SURFHVV /DQGVFDSH OLQNDJHV QRW RQO\ FRQQHFW SDUNV DQG SUHVHUYHV WKH\ DOVR SURYLGH SURWHFWLRQ IRU KLVWRULF VLWHV RSSRUWXQLWLHV IRU UHFUHDWLRQ DQG DOVR IXQFWLRQ DV D FRUULGRU IRU SODQWV DQG DQLPDOV ´/LQNV DQG FRQVHUYDWLRQ FRUULGRUV VXFK D DV ULYHUV DQG VWUHDP ÁRRGSODLQV VHUYH DV ELRORJLFDO FRQGXLWV IRU ZLOGOLIH DQG PD\ DOVR SURYLGH RSSRUWXQLWLHV IRU RXWGRRU UHFUHDWLRQ ZKLOH JUHHQZD\V DQG JUHHQEHOWV FUHDWH D IUDPHZRUN IRU GHYHORSPHQW SUHVHUYH QDWLYH HFRV\VWHPV DQG RU IDUPV RU UDQFKHV DQG RIWHQ SURYLGH D SODFH IRU KLNLQJ ELNLQJ RU VLPSO\ HQMR\LQJ QDWXUH µ %HQHGLFW DQG 0F0DKRQ 6LWHV ZKLFK DUH VPDOOHU WKDQ KXEV PD\ RU PD\ QRW EH DWWDFKHG WR ODUJHU OLQNDJHV +RZHYHU WKH\ GR RIIHU QDWXUDO UHVSLWHV IRU ERWK SHRSOH DQG ZLOGOLIH 6LWHV DUH VPDOOHU WKDQ KXEV DQG PD\ QRW EH DWWDFKHG WR ODUJHU LQWHUFRQQHFWHG FRPPXQLW\ DQG UHJLRQDO FRQVHUYDWLRQ V\VWHPV EXW OLNH WKH RWKHU FRPSRQHQWV RI D JUHHQ LQIUDVWUXFWXUH QHWZRUN WKH\ FDQ FRQWULEXWH LPSRUWDQW HFRORJLFDO

DQG VRFLDO YDOXHV VXFK DV SURWHFWLQJ ZLOGOLIH KDELWDW DQG SURYLGLQJ VSDFH IRU QDWXUH EDVHG UHFUHDWLRQ DQG UHOD[DWLRQ :KLOH JUHHQ LQIUDVWUXFWXUH PDLQWDLQV WKH LPSRUWDQW JRDO RI SURWHFWLQJ QDWXUDO V\VWHPV DQG ELRGLYHUVLW\ ² JUHHQ LQIUDVWUXFWXUH QHWZRUNV FDQ LQFOXGH D ZLGH GLYHUVLW\ RI HOHPHQWV WKDW PD\ QRW H[SOLFLWO\ VHUYH WKLV IXQFWLRQ %HQHGLFW DQG 0F0DKRQ

*UHHQZD\V DQG WUDLOV WKDW SURYLGH UHFUHDWLRQ DQG KHDOWK YDOXHV IRU SHRSOH +LVWRULFDO FXOWXUDO DQG DUFKHRORJLFDO VLWHV WKDW DUH YDOXHG FRPPXQLW\ UHVRXUFHV DQG )DUPV RUFKDUGV UDQFKHV DQG IRUHVW WKDW SURYLGH SHRSOH ZLWK LPSRUWDQW HFRQRPLF \LHOGV FDQ DOVR EH HOHPHQWV RI D JUHHQ LQIUDVWUXFWXUH QHWZRUN ,Q WKH FDVH RI &ROyQ WKH IRFXV RI LPSOHPHQWLQJ D JUHHQ LQIUDVWUXFWXUH QHWZRUN LV IRU WKH FRQQHFWLYLW\ RI SHRSOH WKURXJK WKH VLWH ZLWK WKH KRSHV WKDW ² JUHHQ VSDFH ZLOO JLYH UHDVRQ IRU JUHDWHU SHGHVWULDQ PRYHPHQW DQG UHFUHDWLRQDO UHVSLWHV WKDW DOORZ IRU IRRW WUDIÀF WKDW ZLOO LQFUHDVH RQ WKH JURXQG VSHQGLQJ LQ WKH FLW\ $FFHVV WR JUHHQ VSDFHV DUH NQRZQ WR LQFUHDVH KHDOWK DQG ZHOOQHVV SURSHUW\ YDOXH DQG HQYLURQPHQWDO LQWHJULW\ $OWKRXJK &ROyQ FRQWDLQV D QXPEHU RI 6SDQLVK VW\OH SOD]DV WKHVH VSDFHV UHPDLQ LVRODWHG HQWLWLHV ZLWKLQ WKH FLW\ /LQNLQJ WKHVH H[LVWLQJ VSDFHV ZLOO DOORZ IRU JUHDWHU HDVH RI SHGHVWULDQ PRYHPHQW DQG KRSHIXOO\ GHFUHDVH GHSHQGHQFH RQ YHKLFOHV WKDW QHJDWLYHO\ DIIHFW DLU TXDOLW\ DQG HQYLURQPHQWDO TXDOLW\


)25 :$7(5)5217 '(9(/230(17 &ULWLFDO LQ HQYLURQPHQWDO VXVWDLQDELOLW\ DQG :DYH )RUFH 6XGGHQ (URVLRQ DQG *UDGXDO +D]DUGV ² +LJK 7LGH )ORRGLQJ 'XH 7R 6HD UHVLOLHQFH WKHRU\ LV WKDW IXWXUH GHVLJQV EHJLQ /HYHO 5LVH DQG *UDGXDO (URVLRQV &XUUHQWO\ WR DGGUHVV WKH DELOLW\ RI D FLW\ WR ERXQFH EDFN WKH ELJJHVW FRDVWDO KD]DUG WKUHDWV WR &ROyQ DQG DFFRUGLQJ WR WKH 8UEDQ /DQG ,QVWLWXWH DUH +LJK 7LGH )ORRGLQJ 'XH 7R 6HD /HYHO ´ERXQFH IRUZDUGµ ZKHQ SODFHG XQGHU VWUHVV 5LVH DQG :DYH )RUFH 7KLV KDV LPSRVHG FDXVHG E\ LQVWDQFHV RI QDWXUDO GLVDVWHUV D PHWHU PLQLPXP KHLJKW IRU DOO FRDVWDO (QKDQFLQJ D VLWH DQG D FRPPXQLW\·V FDSDFLW\ GHYHORSPHQW LQ WKH FLW\ RI &ROy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ÁRRG FRQYHUVDWLRQV DERXW WKH IXWXUH RI WKHVH SURRÀQJ PHDVXUHV WKDW HLWKHU NHHS ÁRRG ZDWHUV RXW ´GU\ FRDVWDO FLWLHV 7KH H[LVWLQJ FLW\ VWUXFWXUH RI ÁRRG SURRÀQJµ DYRLG ÁRRG ZDWHUV WKURXJK HOHYDWLRQ RU WR &ROyQ LQ VRPH DUHDV XWLOL]HV D JUHDW GHDO RI DOORZ ZDWHU EXW WDNH DFWLRQV WR PLQLPL]H GDPDJHV ´ZHW WKHVH FRDVWDO ZDWHUIURQW VWUDWHJLHV +RZHYHU ÁRRG SURRÀQJµ VRPH DUHDV VWLOO UHPDLQ YXOQHUDEOH WR QDWXUDO 7KH &LW\ RI 1HZ <RUN

GLVDVWHUV $ FRPELQDWLRQ RI WKH ERWK ¶VLWH· DQG ¶UHDFK· VWUDWHJLHV ZLOO EH XWLOL]HG LQ 0XFK RI WKH FLW\ RI &ROyQ ² WKH EXLOGLQJ IXWXUH GHVLJQ DSSOLFDWLRQ RI IRFXV DUHDV LQIUDVWUXFWXUH DW OHDVW ² KDV DOUHDG\ EHHQ 7KH IROORZLQJ VHFWLRQ ORRNV DW VWUDWHJLHV GHVLJQHG IRU VXFK GLVDVWURXV RFFDVLRQV XVHG LQ WKH FUHDWLRQ DQG GHYHORSPHQW RI 3HUHQQLDO ÁRRGLQJ ² WKLQJV OLNH VWDQGLQJ UHVLOLHQW FRDVWDO FLWLHV ZDWHU DQG VHZDJH ² DUH WKH ELJJHU LVVXHV 7KHUH KDYH EHHQ IHZ LI DQ\ GLVDVWURXV &2$67$/ +$=$5'6 VLWXDWLRQV LQYROYLQJ PDVVLYH ÁRRGLQJ GXH WR KXUULFDQHV RU ODUJHU VWRUPV +RZHYHU WKLV $ QXPEHU RI HQYLURQPHQWDO WKUHDWV WR LV QRW WR VD\ WKDW 3DQDPi LV QRW VXVFHSWLEOH FRDVWDO VHFXULW\ H[LVW &RDVWDO KD]DUGV FDQ WR WKH FRQVHTXHQFHV RI FOLPDWH VKLIW DQG WDNH D YDULHW\ RI IRUPV ² VRPH HYHQWV VKRXOG QRW SUHSDUH IRU VXFK RFFXUUHQFHV D PRUH JUDGXDO OLNH HURVLRQ DQG RWKHUV $OWKRXJK PXFK RI EXLOW LQIUDVWUXFWXUH LV DUH PRUH VXGGHQ DQG VHYHU OLNH QDWXUDO GLVDVWHUV 'XH WR FOLPDWH VKLIW PRUH VXGGHQ HOHYDWHG DQG VHW IDU HQRXJK EDFN WR DYRLG DQG VHYHU FRDVWDO KD]DUGV DUH OLNHO\ WR RFFXU VHYHU GDPDJHV GXH WR ODUJH VWRUPV DQG PRUH IUHTXHQWO\ &RDVWDO KD]DUGV KDYH VXUJHV DQ\ QHZ FRDVWOLQH GHYHORSPHQW WKDW EHHQ FDWHJRUL]HG LQ WR ÀYH W\SHV (YHQW LV WR EH SURSRVHG VKRXOG WDNH LQWR DFFRXQW %DVHG +D]DUGV ² 6WRUP 6XUJH )ORRGLQJ WKH XVH RI VRPH ´VLWH VWUDWHJLHVµ IRU IXWXUH LQIUDVWUXFWXUH DV D SUHYHQWDWLYH PHDVXUH 6HFRQG &LW\ /,7(5$785( 5(9,(:


6HD :DOO ZLWK LQFRUSRUDWHG VHDWLQJ LQ &DVFR 9LHMR

5($&+ 675$7(*,(6 5HDFK VWUDWHJLHV LQFOXGH LQWHUYHQWLRQV XSODQG DW WKH VKRUHOLQH RU LQ WKH ZDWHU ZKLFK DIIHFW D ODUJHU VWUHWFK RI FRDVWOLQH LQYROYH PDQ\ LQGLYLGXDO VLWHV DQG ODQGRZQHUV DQG DUH RIWHQ EXLOW DQG PDLQWDLQHG E\ SXEOLF DJHQFLHV 7KH REMHFWLYHV RI YDULRXV UHDFK VWUDWHJLHV DUH WR VWDELOL]H ODQG DJDLQVW HURVLRQ DQG GDLO\ WLGH OHYHOV PLWLJDWH ZDYH IRUFHV EORFN WKH ÁRRGLQJ RI XSODQG QHLJKERUKRRGV RU WR UHPRYH GHYHORSPHQW IURP YXOQHUDEOH DUHDV 7KH &LW\ RI 1HZ <RUN

3DQDPi KDV D XQLTXH JHRJUDSKLF SRVLWLRQ ZKLFK SODFHV LW MXVW RXWVLGH RI WKH KXUULFDQH EHOW $OWKRXJK &ROyQ GRHV QRW UHFHLYH PDQ\ VHYHUHO\ GHYDVWDWLQJ VWRUPV LW LV FKDOOHQJHG E\ VWRUP VXUJHV DQG ODUJHU ZDYHV ZKLFK WKUHDWHQ WKH VWDELOLW\ RI WKH ZDWHUIURQW WKURXJK HURVLRQ DQG ULVLQJ WLGHV 7KH ZDWHUIURQW SDUNV ZKLFK PDNH XS D PDMRULW\ RI WKH SHQLQVXOD FRDVWDO HGJH KDYH KRZHYHU LQ GRLQJ WKHLU MRE EHHQ GHVWUR\HG LQ WKH SURFHVV ,W LV WKURXJK WKH XVH RI VRPH RI WKHVH ´UHDFK VWUDWHJLHVµ WKDW VRPH RI WKH H[LVWLQJ ZDWHUIURQW SDUNV DQG JUHHQV VSDFHV WKDW SURWHFW WKH LQQHU FRUH RI WKH FLW\ PLJKW DOVR EH SURWHFWHG DQG SUHVHUYHG


6HFRQG &LW\ /,7(5$785( 5(9,(:


7KURXJK WKH FRPSLOHG OLWHUDWXUH LW KDV EHFRPH HYLGHQW WKDW D KROLVWLF DSSURDFK WR DGGUHVVLQJ WKH FKDOOHQJHV IDFLQJ &ROyQ ZRXOG EHVW VHUYH WKH SURMHFW DQG LWV JRDOV )RFXVLQJ RQ VROXWLRQV WKDW DUH EHQHÀFLDO FXOWXUDOO\ HFRQRPLFDOO\ DQG HQYLURQPHQWDOO\ UHPDLQ NH\ FRPSRQHQWV LQ XQGHUVWDQGLQJ KRZ WR GHVLJQ IRU WKH IXWXUH RI &ROyQ )URP WKLV OLWHUDWXUH UHYLHZ LW ZDV XQGHUVWRRG WKDW ODQGVFDSHV OLNH WKRVH H[LVWLQJ LQ &ROyQ SRVVHVV SULFHOHVV QDWXUDO DQG FXOWXUDO FDSLWRO WKDW FDQ DQG ZLOO EH EHQHÀFLDO LQ IXWXUH GHYHORSPHQW RI WKH FLW\ ,GHQWLI\LQJ FXOWXUDO ODQGVFDSH LQ WKH FLW\ DQG ZRUNLQJ WR SURWHFW WKHP VKRXOG EH PDGH KLJK SULRULW\ LI &ROyQ LV WR PRYH WRZDUGV UHYLWDOL]DWLRQ 5HVLOLHQF\ DFFRPSOLVKHG WKURXJK DGDSWLYH VWUDWHJLHV IRU VLJQLÀFDQW ODQGVFDSHV FDQ EH FRPELQHG LQWR WKH SUHVHUYDWLRQ SODQV IRU FXOWXUDO ODQGVFDSHV $V D ZD\ WR HQVXUH WKH ORQJ ODVWLQJ EHQHÀWV RI KLVWRULF IRUP LQ &ROyQ WKLV SURMHFW PXVW HPEUDFH WKH HSKHPHUDO QDWXUH RI ODQGVFDSH UHVLOLHQF\ WKURXJK VXVWDLQDEOH FRPPXQLW\ GHYHORSPHQW 0DLQWDLQLQJ QRWDEOH ODQGVFDSHV WKDW DUH H[WHQVLRQV RI WKH SHRSOH DQG FXOWXUH RI &ROyQ FDQ FUHDWH VLJQLÀFDQW HFRQRPLF EHQHÀWV IRU WKH FLW\ DV ZHOO $GDSWLYH UHXVH DQG VXVWDLQDEOH WRXULVP HDFK EHQHÀW IURP WKH H[LVWHQFH RI FXOWXUDO DPHQLWLHV DQG FDQ DOVR FRQWULEXWH WR WKH VXVWDLQDELOLW\ RI WKH ODQGVFDSH $GDSWLYH UHXVH LQ &ROyQ ZLOO DOORZ IRU WKH SUHVHUYDWLRQ RI WKH FLW\·V KLVWRULF OD\RXW DV ZHOO DV D QXPEHU RI DUFKLWHFWXUDOO\ VLJQLÀFDQW EXLOGLQJV :KLOH DGDSWLYH UHXVH KRQRUV WKH SUHYLRXV IRUP DQG IXQFWLRQ RI D SODFH VXVWDLQDEOH WRXULVP DWWHPSWV WR SUHVHUYH QRWHZRUWK\ DPHQLWLHV WKURXJK WKH KLJKOLJKWLQJ RI WKHLU FXOWXUDO LPSRUWDQFH 7KLV ZLOO DOORZ JXHVW LQ &ROyQ WR GHYHORS D GHHSHU HGXFDWLRQDO FRQQHFWLRQ WR WKH FLW\ ²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ÁRRGLQJ *UHHQ LQIUDVWUXFWXUH ZLOO SURYLGH DQRWKHU OD\HU RI HIÀFLHQF\ ZLWKLQ WKH FLW\ RI &ROyQ E\ DOOHYLDWLQJ VRPH RI WKH RQJRLQJ FKDOOHQJHV RI ORZ SURSHUW\ YDOXH VWRUPZDWHU PDQDJHPHQW DQG RYHUDOO HQYLURQPHQWDO HTXDOLW\ FXUUHQWO\ H[LVWLQJ WKURXJKRXW WKH FLW\ ,Q DOO WKH FRPELQHG WRSLFV SUHVHQWHG LQ WKH OLWHUDWXUH UHYLHZ KDYH SURYLGHG LQWHUORFNLQJ VROXWLRQV WKDW ZLOO EHQHÀW &ROyQ LQ PXOWLSOH ZD\V (DFK VWUDWHJ\ H[DPLQHG FDQ GHOLYHU PXOWLSOH SRVLWLYH RXWFRPHV IRU &ROyQ


1RUWK :KDUI DQG 6LOR 3DUN


*5((1 ,1)5$6758&785( /,1($5 3$5.6 3520(1$'(6 3267 ,1'8675,$/ :$7(5)52176 6867$,1$%/( 35$&7,&(6


*5((1 ,1)5$6758&785(

7KH FDWHJRU\ RI JUHHQ LQIUDVWUXFWXUH DV LW SHUWDLQV WR WKH IROORZLQJ FDVH UHYLHZV ORRNV DW JUHHQ LQIUDVWUXFWXUH·V DELOLW\ WR FRQQHFW SHRSOH DQG PDQDJH VWRUPZDWHU

'XWFK .LOOV *UHHQ /DÀWWH *UHHQZD\ /,1($5 3$5.6 3520(1$'(6

&RQQHFWLRQV DUH NH\ WKURXJKRXW DOO RI WKH SURMHFWV XQGHU WKLV FDWHJRU\ 7KH IROORZLQJ FDVH UHYLHZV H[DPLQH WKH SRVVLELOLWLHV IRU FULPH UHGXFWLRQ HFRQRPLF UHYLWDOL]DWLRQ RSHQ VSDFH DQG FRQQHFWLYLW\ ZLWK LQ D GHQVH XUEDQ FRQWH[W

/DV 5DPEODV 6XSHUNLOHQ 3DUN 3267 ,1'8675,$/ :$7(5)52176 5HSXUSRVHG RSHQ SXEOLF VSDFH DQG PDULWLPH DFWLYLW\ ZLWKLQ WKH EDFN GURS RI SUH H[LVWLQJ LQGXVWU\ DUH DGGUHVVHG WKURXJKRXW DOO RI WKH FDVH UHYLHZV (DFK RI WKH IROORZLQJ VLWHV DOO O\LQJ DW WKH FRDVWDO HGJH RI IRUPHU LQGXVWU\ KDYH WUDQVIRUPHG SUHYLRXVO\ XQGHUXWLOL]HG VSDFH IRU DFWLYH HQJDJHPHQW DQG FRPPHUFH

1RUWK :KDUI 6XJDU %HDFK :DWHUIURQW 6HDWWOH :LOPLQJWRQ :DWHUIURQW 3DUN 6867$,1$%/( 35$&7,&(6

/RFDO PDWHULDO DQG MRE RSSRUWXQLWLHV IRU UHVLGHQWV DUH WKH SULPDU\ IRFL XQGHU WKLV FDWHJRU\ $OWKRXJK IDU IURP XUEDQ LQ FRQWH[W WKH IROORZLQJ FDVH UHYLHZV H[SORUH DOWHUQDWLYH ZDV WR FDSWXUH YDOXH 7KHVH SURMHFWV IRFXV ÀUVW DQG IRUHPRVW RQ WKH HQYLURQPHQW DQG WKH QDWLYH SHRSOH ² DGDSWLQJ VWUDWHJLHV WKDW ZLOO XOWLPDWHO\ EHQHÀW ERWK

&URVVZDWHUV (FRORGJH 3RWDWRH 3DUN

&DVH UHYLHZV DUH D YDOXDEOH UHVRXUFH IRU GHVLJQ EDVHG SURIHVVLRQV OLNH ODQGVFDSH DUFKLWHFWXUH 7KH\ RIIHU JUHDWHU XQGHUVWDQG RI WKH LPSDFWV DQG LPSOLFDWLRQV RI VSHFLÀ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yQ ZKLOH KRQRULQJ WKH JRDOV RI FRQQHFWLYLW\ JUHHQ LQIUDVWUXFWXUH DQG FXOWXUDO H[FKDQJH 7KH VHOHFWHG FDVH UHYLHZV KDYH D ZLGH UDQJH RI JHRJUDSKLF ORFDWLRQV DQG GHVLJQ FRQVWUDLQWV +RZHYHU LW ZDV HDFK SURMHFW·V DELOLW\ WR DFNQRZOHGJH LWV XQLTXH GHVLJQ SDUDPHWHUV DQG DGDSW WKDW PDNH WKHP VLJQLÀFDQW ,QGXVWU\ KLVWRU\ FRQQHFWLYLW\ DQG VXVWDLQDEOH SUDFWLFHV KDYH KHDYLO\ DIIHFWHG HDFK RI WKH VHOHFWHG FDVH UHYLHZV


2OG +DYDQD +DYDQD &XED


352-(&7 29(59,(: 2ULJLQDOO\ D SDUNLQJ ORW ZKHUH VXEZD\ OLQHV PHW VXUURXQGHG E\ WZR HOHYDWHG URXWHV DQG FRQJHVWHG VWUHHWV 'XWFK .LOOV *UHHQ LV D SULPH H[DPSOH RI WUDQVIRUPDWLRQ DQG DGDSWLYH UHXVH LQ WKH XUEDQ HQYLURQPHQW 'XWFK .LOOV *UHHQ KDV QRZ EHFRPH D VLJQLÀFDQW SLHFH RI ODQGVFDSH LQ D IRUPHUO\ GDQJHURXV DQG FRQJHVWHG DUHD 1RZ 'XWFK .LOOV *UHHQ SURYLGHV LPSURYHG WUDIÀF FLUFXODWLRQ DQG SHGHVWULDQ DQG ELNH VDIHW\ $ PDMRU URDG UHDOLJQPHQW ZDV XQGHUWDNHQ WR FRQYHUW WKLV IRUPHU SDUNLQJ ORW LQWR D JUHHQ FRUULGRU IRU ELNHUV DQG SHGHVWULDQV 0XFK RI WKH VLWH LV FRPSULVHG RI UHF\FOHG PDWHULDO DQG LPSOHPHQWV PXOWLSOH JUHHQ LQIUDVWUXFWXUHV VWUDWHJLHV WR KHOS PLWLJDWH VWRUPZDWHU UXQRII DQG DOVR SURYLGHV D YHJHWDWLYH EXIIHU WR VXSSRUW EHWWHU DLU TXDOLW\ DQG UHGXFH DPELHQW QRLVH 6HFRQG &LW\ &$6( 5(9,(:6

/2&$7,21 1HZ <RUN 1HZ <RUN '(6,*1(5 :57 0DUJLH 5XGGLFN /DQGVFDSH 05/

352-(&7 7<3( 3DUN *UHHQZD\ &RUULGRU 6,=( $FUHV +HFWDUH

<($5 &203/(7(' .(< &21&(376 $GDSWLYH 5HXVH &RQQHFWLYLW\ *UHHQ ,QIUDVWUXFWXUH *UHHQ 6SDFH (QKDQFHPHQW 5HPHGLDWLRQ 6WRUPZDWHU 0DQDJHPHQW


'(6,*1 ,03/,&$7,216 ‡ 0DMRU SURSHUW\ YDOXH LQFUHDVH IRU VXUURXQGLQJ FRPPXQLW\ ‡ 6DIH UHFUHDWLRQDO VSDFHV IRU ORFDOV ‡ +XPDQL]HG D FHQWUDO KLJK YROXPH FRUULGRU DQG LPSURYHG HQYLURQPHQWDO TXDOLW\ ‡ &RRUGLQDWHG ZLWK PXOWLSOH VWDNH KROGHUV LQ RUGHU WR SURYLGH WKH EHVW SRVVLEOH RXWFRPH IRU DOO LQYROYHG ‡ 3URYLGHG D PXFK QHHG SHGHVWULDQ DQG ELNH IULHQGO\ FRUULGRU ZKLFK XOWLPDWHO\ KHOSHG DOOHYLDWH FRQJHVWLRQ DQG ERWK ELNH DQG SHGHVWULDQ IDWDOLWLHV ‡ 3UHYHQWDWLYH VWRUPZDWHU WHFKQLTXHV ZHUH XVHG WR UHGXFH LUULJDWLRQ QHHGV HQHUJ\ FRQVXPSWLRQ DQG LPSURYH DLU TXDOLW\ ‡ 5HGXFHV DPELHQW QRLVH IRU WKH VXUURXQGLQJ QHLJKERUKRRGV


352-(&7 29(59,(: /DÀWWH *UHHQZD\ LV RQH RI WKH ÀUVW SRVW KXUULFDQH .DWULQD UHYLWDOL]DWLRQ SURMHFWV LQ 1HZ 2UOHDQV $ IRUPHU VKLSSLQJ FDQDO DQG UDLOURDG ULJKW RI ZD\ /DÀWWH *UHHQZD\ FRQQHFWHG WKH KLVWRULF )UHQFK 4XDUWHU RI 1HZ 2UOHDQV WR %D\RX 6W -RKQ DQG /DNH 3RQWFKDUWUDLQ /DÀWWH *UHHQZD\ ZLOO EH WUDQVIRUPHG LQWR D PL[HG XVH GHYHORSPHQW WKDW LQFOXGHV UHVLGHQWLDO UHWDLO DQG LQGXVWULDO XVHV $OWKRXJK WKH /DÀWWH *UHHQZD\ RQO\ HQFRPSDVVHV DSSUR[LPDWHO\ DFUHV VWUHWFKLQJ PLOHV LW LV D SDUW RI WKH ODUJHU /DÀWWH &RUULGRU GLVWULFW WKDW VSDQV DFUHV 7KH VLWH UHÁHFWV \HDUV RI VHWWOHPHQW SDWWHUQV WKDW UDQJH IURP FRORQLDO HUD VHWWOHPHQWV WR PLG WZHQWLHWK FHQWXU\ VXEXUEDQ QHLJKERUKRRGV DQG LV KRPH WR RYHU UHVLGHQWV 7KH FRPPXQLW\ RI /DÀWWH *UHHQZD\ LV D VSHFWUXP RI GLYHUVLW\ ZLWK D PL[ RI VRFLRHFRQRPLF DQG UDFLDO JURXSV 7KLV PHDQW WKDW WKH SURMHFW UHTXLUHG D JUHDW GHDO RI HQJDJHPHQW ZLWK WKH FRPPXQLW\ WR LQFRUSRUDWH WKH QHHGV DQG ZDQWV RI VXFK DQ HFOHFWLF FRPPXQLW\ 0XFK FRQVLGHUDWLRQ ZDV JLYHQ WR WKH KLVWRULF HFRORJ\ RI WKH VLWH +LVWRULF HFRORJ\ DQG GLYHUVH XVHU JURXSV ZKHUH DOO KLJKO\ FRQVLGHU ZKHQ GHVLJQLQJ WKH JUHHQZD\ 6HFRQG &LW\ &$6( 5(9,(:6

/2&$7,21 1HZ 2UOHDQV /RXLVLDQD '(6,*1(5 'HVLJQ :RUNVKRS 352-(&7 7<3( *UHHQZD\ &RUULGRU 6,=( PLOHV DFUHV <($5 &203/(7(' 1 $ .(< &21&(376 &RPPXQLW\ (QJDJHPHQW &RQQHFWLYLW\ &XOWXUDO 3UHVHUYDWLRQ (FRQRPLF 'HYHORSPHQW *UHHQ ,QIUDVWUXFWXUH 6WRUPZDWHU 0DQDJHPHQW 8UEDQ 5HYLWDOL]DWLRQ


'(6,*1 ,03/,&$7,216 ‡ ,QFRUSRUDWHG VXVWDLQDEOH SURFHVVHV LQWR WKH GHVLJQ RI WKH SURMHFW WKDW LQFOXGHG JUHHQ VWRUPZDWHU LQIUDVWUXFWXUH QDWLYH SODQWV LQFUHDVHG SHUPHDELOLW\ DQG DGDSWLYH UH XVH VWUDWHJLHV IRU H[LVWLQJ EXLOW IRUP ‡ 7KH LQWHQVLYH SODQQLQJ SURFHVV WKDW DFFRPSDQLHG WKLV SURMHFW DOORZHG IRU D PHDVXUDEOH RXWFRPH LQ UHJDUGV WR WKH VXFFHVV RI WKH SURMHFW ‡ ,QFRUSRUDWLRQ RI DQ HFRQRPLF UHYLWDOL]DWLRQ VWUDWHJ\ IRU WKH FRPPXQLW\ RI WKH VXUURXQGLQJ FRUULGRU ‡ +LJK OHYHO RI FRPPXQLW\ HQJDJHPHQW ‡ /RQJ WHUP VXVWDLQDELOLW\ JRDOV ZHUH GHYHORSHG ‡ 'HVLJQ FUHDWHV V\QHUJLHV EHWZHHQ H[LVWLQJ FRPPXQLW\ XVDJH DQG IDFLOLWLHV DQG GHVLJQHG HOHPHQWV ‡ 8WLOL]HG QDWLYH SODQW PDWHULDO DQG SDLG FORVH DWWHQWLRQ WR KLVWRULF HFRORJ\ RI WKH VLWH ‡ &DSLWDOL]HV RQ XQGHUXWLOL]HG VSDFH


B

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ÀOOHG VWUHDP EHG NQRZQ DV /D 5DPEOD ,Q WKH VWUHDP ZDV GLYHUWHG DQG /D 5DPEOD VORZO\ WUDQVIRUPHG LQ WR D VWUHHW 7KH ÀUVW VHW RI WUHHV ZHUH SODQWHG DORQJ /D 5DPEOD LQ

6HFRQG &LW\ &$6( 5(9,(:6

/2&$7,21 %DUFHORQD 6SDLQ '(6,*1(5 &LW\ RI %DUFHORQD 352-(&7 7<3( 3DUN *UHHQZD\ &RUULGRU 6,=( PLOHV NLORPHWHUV

<($5 &203/(7(' .(< &21&(376 &RPPXQLW\ (QJDJHPHQW &RQQHFWLYLW\ &XOWXUDO 3UHVHUYDWLRQ *UHHQ 6SDFH (QKDQFHPHQW 5HPHGLDWLRQ 8UEDQ 5HYLWDOL]DWLRQ


'(6,*1 ,03/,&$7,216 3HGHVWULDQ RQO\ FLUFXODWLRQ SDWWHUQV 6SDWLDO OD\RXW LV GLYLGHG LQWR XQLTXH VHFWLRQV WKDW VHUYH HDFK LQGLYLGXDO FRPPXQLW\ WKDW LQWHUVHFWV ZLWK WKH PDOO 6KDGH SURYLGHG WKURXJK GHQVH XUEDQ WUHH FDQRS\ 3URYLGHV D OLQN EHWZHHQ FRPPXQLWLHV 2IIHUV SXEOLF RSHQ VSDFH ZLWKLQ D GHQVH XUEDQ IDEULF /LQN WR WKH KLVWRU\ RI WKH FLW\


B

352-(&7 29(59,(: $ KDOI PLOH XUEDQ OLQHDU SDUN ORFDWHG LQ WKH PLGGOH RI RQH RI 'HQPDUN·V PRVW VRFLDOO\ FKDOOHQJHG QHLJKERUKRRGV 6XSHUNLOHQ SDUN LV D ´FRQWHPSRUDU\ YHUVLRQ RI D XQLYHUVDO JDUGHQµ 7KH SDUN FRQVLVW RI WKUHH GLVWLQFW DUHDV ² 7KH 5HG 6TXDUH WR WKH QRUWK 7KH %ODFN 0DUNHW FHQWHU DQG 7KH *UHHQ 3DUN VRXWK 7KH SDUN ZDV GHVLJQHG WR UHÁ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´ÀUVW WKDW WKH SDUN ZRXOG EHFRPH D YHKLFOH IRU FHOHEUDWLQJ WKH QHLJKERUKRRG·V PXOWLFXOWXUDO KHULWDJH DQG VHFRQG WKDW LW ZRXOG VHUYH DV D JLDQW H[KLELWLRQ RI XUEDQ EHVW SUDFWLFH µ 6HFRQG &LW\ &$6( 5(9,(:6

/2&$7,21 1RUUHEUR &RSHQKDJHQ 'HQPDUN '(6,*1(5 %,* %MDUNH ,QJHOV $UFKLWHFWXUH 7RSRWHN /DQGVFDSH $UFKLWHFWXUH 6XSHUÁH[ $UWLVW *URXS 352-(&7 7<3( /LQHDU 3DUN 6,=( PLOHV <($5 &203/(7(' .(< &21&(376 &RPPXQLW\ (QJDJHPHQW &RQQHFWLYLW\ &XOWXUDO 3UHVHUYDWLRQ (FRQRPLF 'HYHORSPHQW 8UEDQ 5HYLWDOL]DWLRQ


'(6,*1 ,03/,&$7,216 'LVVHFWV WKH PRVW HWKQLFDOO\ GLYHUVH DQG VRFLDOO\ FKDOOHQJHG QHLJKERUKRRG LQ 'HQPDUN SURYLGLQJ LW ZLWK D QHZ DPHQLW\ DQG D FRPPXQDO VHQVH RI RZQHUVKLS ,QFRUSRUDWHV IRXQG REMHFWV IURP RYHU GLIIHUHQW QDWLRQDOLWLHV RI WKH ORFDO LQKDELWDQWV ´VXUUHDOLVW FROOHFWLRQ RI JOREDO XUEDQ GLYHUVLW\µ DV D UHÁ HFWLRQ RI WKH QHLJKERUKRRGV GLYHUVLW\ /LQNV WKH VXUURXQGLQJ QHLJKERUKRRGV WKURXJK WKH UHRUJDQL]DWLRQ RI H[LVWLQJ ELNH ODQHV 3URYLGHV D PXOWLWXGH RI UHFUHDWLRQDO DFWLYLWLHV IRU GLYHUVH XVHU JURXSV WKDW KDYH EHHQ IXQFWLRQDOO\ VHSDUDWHG WKURXJK FRORU FRRUGLQDWHG ]RQLQJ &XOPLQDWHV DUW DUFKLWHFWXUH DQG ODQGVFDSH DUFKLWHFWXUH DQG LV D SULPH H[DPSOH RI LQWHUGLVFLSOLQDU\ FROODERUDWLRQ


352-(&7 29(59,(: 1RUWK :KDUI LV D UHGHYHORSPHQW SODQ WKDW VRXJKW WR FKDOOHQJH WUDGLWLRQDO UHGHYHORSPHQW DW $XFNODQG·V :\Q\DUG 3RLQW LQ DQ HIIRUW WR PDLQWDLQ WKH UXVWLF DQG XWLOLWDULDQ JHQLXV ORFL RI WKH VSDFH 1RUWK :KDUI DQG 6LOR 3DUN ZDV WUDQVIRUPHG LQWR D PL[HG XVH DQG PDULWLPH ZDWHUIURQW WKDW RIIHUV WKH FLW\ RI $XFNODQG D QHZ PDMRU DPHQLW\ 7ZR PDMRU XQGHUWDNLQJV RI WKH SURMHFW ZKHUH WR SUHVHUYH DQG HQKDQFH DTXDWLF LQGXVWULHV WKDW ZRXOG UHLQIRUFH WKH RULJLQDO XVHV RI WKH VSDFH DQG XWLOL]H WKH VLWHV ´SHFXOLDU DUFKDHRORJ\µ DV D IRUP RI DGDSWLYH UHXVH XWLOL]LQJ H[LVWLQJ PDWHULDOV DQG UHGHÀQLQJ WKH ODQGVFDSH

6HFRQG &LW\ &$6( 5(9,(:6

/2&$7,21 $XFNODQG 1HZ =HDODQG '(6,*1(5 7D\ORU &XOOLW\ /HWKOHDQ :UDLJKW $VVRFLDWHV 352-(&7 7<3( ,QGXVWULDO :DWHUIURQW 6,=( $FUHV +HFWDUH

<($5 &203/(7(' .(< &21&(376 $GDSWLYH 5HXVH &RQQHFWLYLW\ *UHHQ ,QIUDVWUXFWXUH *UHHQ 6SDFH (QKDQFHPHQW +DELWDW &UHDWLRQ 3UHVHUYDWLRQ DQG 5HVWRUDWLRQ 5HPHGLDWLRQ 5HFUHDWLRQDO DQG 6RFLDO 9DOXH 3RVW ,QGXVWULDO 'HYHORSPHQW


'(6,*1 ,03/,&$7,216 ‡ 7KH SDUN PDLQWDLQV D YDULHW\ RI XVHV WKDW LQFOXGH SDVVLYH UHFUHDWLRQ HYHQW VSDFH VHDIRRG PDUNHW DQG FKLOGUHQ·V VSDFHV ‡ 0DULWLPH DFWLYLWLHV ZHUH SUHVHUYHG DQG HQKDQFHG ‡ 5HSXUSRVLQJ RI H[LVWLQJ VLWH PDWHULDO ‡ $GDSWLYH UHXVH RI ODQGVFDSH DQG DTXDWLF DFFHVV


352-(&7 29(59,(: 5HYHUWHG IURP D IRUPHU SDUNLQJ ORW LQ WKH LQGXVWULDO DUHD RI 7RURQWR &DQDGD·V 6XJDU %HDFK RSHQHG LQ $XJXVW RI WR EHFRPH 7RURQWR·V VHFRQG XUEDQ EHDFK DORQJ WKH FLWLHV GRZQWRZQ VKRUHOLQH 5HYHUWHG IURP D IRUPHU SDUNLQJ ORW LQ WKH LQGXVWULDO DUHD RI 7RURQWR &DQDGD·V 6XJDU %HDFK RSHQHG LQ $XJXVW RI WR EHFRPH 7RURQWR·V VHFRQG XUEDQ EHDFK DORQJ WKH FLWLHV GRZQWRZQ VKRUHOLQH 7KH SDUN IHDWXUHV WKUHH GLVWLQFW FRPSRQHQWV DQ XUEDQ EHDFK SOD]D VSDFH DQG WUHH OLQHG SURPHQDGH WKDW VWUHWFKHV DFUHV 7KH VLWH LV D FRQWLQXDWLRQ RI WKH SURSRVDO E\ :HVW IRU D FRQWLQXRXV ZDWHUIURQW SURPHQDGH IRU 7RURQWR·V XUEDQ VKRUHOLQH 7KH EHDFK LV IXUQLVKHG ZLWK UHF\FOHG SODVWLF FRQWHPSRUDU\ $GLURQGDFN FKDLUV 7KH PRYDEOH FKDLUV DOORZ IRU XVHUV WR GHÀQH WKH VSDFHV DV ZHOO DV YLHZV IURP WKH VSDFH $Q LOOXPLQDWHG ZDWHU IHDWXUH ORFDWHG LQ D JUDQLWH PDSOH OHDI MXVW EHVLGH WKH EHDFK LV D JUHDW DPHQLW\ IRU ERWK DGXOWV DQG FKLOGUHQ WR FRRO RII GXULQJ WKH VXPPHU 1RW RQO\ GRHV WKH VLWH RIIHU ZRQGHUIXO VFHQLF YLHZV DQG RSSRUWXQLWLHV IRU UHOD[DWLRQ DQG UHFUHDWLRQ WKURXJKRXW WKH GD\ LW DOVR FRPHV DOLYH DW QLJKW ZLWK D VHULHV RI G\QDPLF OLJKWLQJ IHDWXUH LQFRUSRUDWHG LQWR WKH VLWH IXUQLVKLQJV 6HFRQG &LW\ &$6( 5(9,(:6

/2&$7,21 7RURQWR &DQDGD '(6,*1(5 &ODXGH &RUPLHU $VVRFLDWHV 352-(&7 7<3( 8UEDQ %HDFK 6,=( DFUH <($5 &203/(7(' .(< &21&(376 $GDSWLYH 5HXVH *UHHQ 6SDFH (QKDQFHPHQW 5HPHGLDWLRQ 5HFUHDWLRQDO DQG 6RFLDO 9DOXH 3RVW ,QGXVWULDO 'HYHORSPHQW


'(6,*1 ,03/,&$7,216 %URZQÀ HOG UHYLWDOL]DWLRQ RI XQGHU XVHG VSDFH 7KH XVH RI QHZ HQYLURQPHQWDO WHFKQRORJLHV IRU WKH EHQHÀ W RI XUEDQ HFRORJLHV )OH[LELOLW\ RI VSDWLDO OD\RXW WR DOORZ IRU D PRUH SHUVRQDOL]HG XVHU H[SHULHQFH &RORUIXO VLWH DPHQLWLHV DGG D JUHDWHU VHQVH RI SODFH DQG DHVWKHWLF FKDUP 1HZ VFHQLF YLHZV FUHDWHG IRU QHZO\ HVWDEOLVKHG SXEOLF VSDFH 'LYLVLRQ RI VLWH VSDFHV ZLWKLQ WKH ODQGVFDSH WR DOORZ IRU PXOWLIXQFWLRQDO XVH


352-(&7 29(59,(: :DWHUIURQW 6HDWWOH LV D FRPSOHWH UH LPDJLQLQJ RI 6HDWWOH·V DJLQJ FHQWUDO ZDWHUIURQW 2QH RI WKH PDLQ JRDOV RI WKLV SURMHFW LV WR FUHDWH ´D QHZ ¶ZDWHUIURQW IRU DOO· µ 7KH LQ GHSWK DQDO\VLV FRQGXFWHG E\ ERWK WKH GHVLJQHU DQG KLJKO\ HQJDJHG VXUURXQGLQJ FRPPXQLWLHV UHVSRQGV WR DOO DGMDFHQW DUHDV DQG IXWXUH LQIUDVWUXFWXUDO SODQV E\ FUHDWLQJ D YLVLRQ WKDW ZLOO UHFRQQHFW WKH FLW\ RI 6HDWWOH WR (OOLRW %D\

/2&$7,21 6HDWWOH :DVKLQJWRQ '(6,*1(5 -DPHV &RUQHU )LHOG 2SHUDWLRQV 352-(&7 7<3( ,QGXVWULDO :DWHUIURQW 6,=( 1 $ <($5 &203/(7(' 1 $ .(< &21&(376 &RQQHFWLYLW\ (FRQRPLF 'HYHORSPHQW )ORRG 3URWHFWLRQ -RE &UHDWLRQ 6WRUPZDWHU 0DQDJHPHQW 5HFUHDWLRQDO DQG 6RFLDO 9DOXH

6HFRQG &LW\ &$6( 5(9,(:6


'(6,*1 ,03/,&$7,216 +LJK OHYHO RI SXEOLF HQJDJHPHQW DQG FRPPXQLW\ LQYROYHPHQW ,Q GHSWK DQDO\VLV ZDV FRQGXFWHG LQ DQ HIIRUW WR HQVXUH FRDVWDO UHVLOLHQFH 5H LQWURGXFWLRQ RI QDWLYH VSHFLHV LQ WR WKH XUEDQ ZDWHUIURQW LQ DQ HIIRUW WR VHFXUH ELR GLYHUVLW\ DQG VWUHQJWKHQ ZDWHU·V HGJH 8WLOL]HG JUHHQ LQIUDVWUXFWXUH WR VXSSRUW VWRUPZDWHU PDQDJHPHQW HIIRUWV DQG UHGXFH ZDWHU GHPDQG ZLWKLQ WKH XUEDQ ODQGVFDSH 2YHUDOO LQFUHDVH LQ JUHHQ VSDFH IRU SXEOLF HQJDJHPHQW DQG UHFUHDWLRQ &DUHIXO FRQVLGHUDWLRQ RI PDWHULDOV XVHG WR PLQLPL]H HQYLURQPHQWDO LPSDFW DQG VXSSRUW VXVWDLQDEOH SUDFWLFHV 8VH RI DOWHUQDWLYH HQHUJ\ VRXUFHV WR UHGXFH HQHUJ\ FRQVXPSWLRQ IURP QRQ UHQHZDEOH VRXUFHV


352-(&7 29(59,(: 7KH 3RUW RI /RV $QJHOHV DOVR NQRZQ DV ´$PHULFD·V 3RUWµ LV FXUUHQWO\ PDNLQJ JUHDW VWULGHV WR EHFRPH D JOREDO OHDGHU LQ VXVWDLQDELOLW\ ,W KDV DOUHDG\ GUDPDWLFDOO\ GHFUHDVHG LWV FDUERQ IRRW SULQW ZKLOH DOVR SURPRWLQJ PDQ\ HQYLURQPHQWDO LQLWLDWLYHV WR LQFUHDVH WKH 3RUW·V YLDELOLW\ DQG VXVWDLQDELOLW\ IRU \HDUV WR FRPH $ QXPEHU RI SURJUDPV VXFK DV WKH &OHDQ $LU $FWLRQ 3ODQ &$$3 &OHDQ 7UXFN 3URJUDP &73 %LRORJLFDO 5HVRXUFH 0DQDJHPHQW 3URJUDP DQG (QHUJ\ 0DQDJHPHQW $FWLRQ 3ODQ ( 0$3 DUH DOUHDG\ LQ WKH ZRUNV WR FRQWLQXH WKH 3RUW RI /RV $QJHOHV· SURJUHVVLYH PRYHPHQW WRZDUGV VXVWDLQDELOLW\ $ORQJ ZLWK WKH HQYLURQPHQWDO DQG HQHUJ\ SURJUDPV EHLQJ VXSSRUWHG E\ WKH 3RUW DHVWKHWLF PLWLJDWLRQ LV DOVR EHLQJ PDGH D KLJK SULRULW\ 7KH &RPPXQLW\ $HVWKHWLF 0LWLJDWLRQ 3URJUDP ZDV FUHDWHG WR IXQG RSHQ VSDFH EHDXWLÀ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

/2&$7,21 :LOPLQJWRQ &DOLIRUQLD '(6,*1(5 6DVDNL $VVRFLDWHV 352-(&7 7<3( 3DUN 6,=( DFUH <($5 &203/(7(' .(< &21&(376 $LU 4XDOLW\ &DUERQ 6HTXHVWUDWLRQ $YRLGDQFH (QHUJ\ 8VH +DELWDW &UHDWLRQ 3UHVHUYDWLRQ DQG 5HVWRUDWLRQ -RE &UHDWLRQ 1RLVH 0LWLJDWLRQ


'(6,*1 ,03/,&$7,216 ‡ 8VHV WKH ODQGVFDSH DV D YLVXDO VRXQG DQG HQYLURQPHQWDO EXIIHU ‡ &XWV ODQGVFDSH ZDWHU XVDJH GHFUHDVHV QRLVH GHFLEHOV DQG SURYLGHV VXUURXQGLQJ UHVLGHQFH ZLWK D QHZ DPHQLW\ ‡ ,QFUHDVHG DLU TXDOLW\ E\ LPSOHPHQWLQJ PRUH WUHHV RQ VLWH ‡ 5HGXFWLRQV LQ ERWK &2 DQG VWRUPZDWHU UXQRII RQ VLWH ‡ *UHDWHU FRQQHFWLYLW\ EHWZHHQ QHLJKERUKRRGV DQG RSHQ VSDFH ‡ &RQQHFWV WR ODUJHU UHFUHDWLRQDO QHWZRUN E\ FUHDWLQJ PRUH OLQNV WR WKH &DOLIRUQLD &RDVWDO 7UDLO


352-(&7 29(59,(: &URVVZDWHUV (FRORGJH LV D VXVWDLQDELOLW\ IRFXVHG KRWHO DQG UHVRUW ORFDWHG PLOHV IURP *XDQJ]KRX &KLQD ,W FRQVLVW RI YLOODV DQG VXLWHV VHW KLJK LQ WKH PRXQWDLQV WR RYHUORRN WKH *DQNHQ 5LYHU 7KH VLWH RSHUDWHV RQ ² VTXDUH NLORPHWHUV RI SURWHFWHG IRUHVW 7DNLQJ LQWR FRQVLGHUDWLRQ WKH VXUURXQGLQJ KDELWDWV ORFDO FRPPXQLWLHV DQG FXOWXUDO FXVWRPV LQ &KLQH &URVVZDWHUV (FRORGJH LV VLWXDWHG WR UHÁHFW WUDGLWLRQDO )HQJ 6KXL RULHQWDWLRQ DQG XWLOL]HV DOO ORFDO PDWHULDO DQG DUWLVDQV WR VXSSRUW WKH QDWLYH .HLMD SHRSOH FRPPXQLWLHV

6HFRQG &LW\ &$6( 5(9,(:6

/2&$7,21 1DQNXQ 0RXQWDLQ 5HVHUYH *XDQJGRQJ 3URYLQFH &KLQD '(6,*1(5 ('6$ 352-(&7 7<3( 0DVWHU 3ODQ (FR 5HVRUW 6,=( $FUHV +HFWDUH

<($5 &203/(7(' .(< &21&(376 &RPPXQLW\ (QJDJHPHQW &XOWXUDO 3UHVHUYDWLRQ (FR 7RXULVP )RRG 3URGXFWLRQ +DELWDW &UHDWLRQ 3UHVHUYDWLRQ DQG 5HVWRUDWLRQ 'HYHORSPHQW


'(6,*1 ,03/,&$7,216 ‡ &UHDWHG JUHDWHU QXPEHU RI MREV IRU ORFDO .HLMD SHRSOH ‡ 3D\V FORVH DWWHQWLRQ WR WUDGLWLRQV YDOXHV DQG SUDFWLFHV RI WKH QDWLYH .HLMD SHRSOH ‡ 8WLOL]HV DOO ORFDO PDWHULDO DQG FUDIWVPHQ ‡ *XHVW UHFHLYH D JUHDW GHSWK RI FXOWXUDO LPPHUVLRQ LQ ERWK WKH QDWXUDO HQYLURQPHQW DQG FRPPXQLW\ ‡ (GXFDWLRQDO RSSRUWXQLWLHV IRU JXHVW ‡ 3URWHFWLRQ RI VXUURXQGLQJ HQYLURQPHQW WKURXJK UHJHQHUDWLYH PDWHULDO KDUYHVWLQJ ‡ 2SHUDWLRQ DQG PDLQWHQDQFH VDYLQJ ‡ 2UJDQLF IRRG SURGXFWLRQ WR UHGXFH FRVWV RI LPSRUWV DQG SURYLGH JUHDWHU FRQQHFWLRQ WR WKH ODQG


352-(&7 29(59,(: 3RWDWR 3DUN LV NQRZQ DV WKH FHQWHU RI RULJLQ RI WKH SRWDWR DQG KDV EHHQ WHQGHG WR IRU FHQWXULHV E\ WKH 4XHFKXD SHRSOH ZKRVH ORFDO IRRGV V\VWHPV DUH GHHSO\ URRWHG LQWR WKHLU FXOWXUH /RFDWHG LQ WKH &XVFR 9DOOH\ WKH 3RWDWR 3DUN LV ZKDW PDQ\ UHIHU WR DV ´D XQLTXH PRGHO RI KROLVWLF FRQVHUYDWLRQ RI WKH $QGHDQ WUDGLWLRQDO ODQGVFDSHµ 7KLV SDUN IRFXVHV RQ FRQVHUYDWLRQ RI DJURELRGLYHUVLW\ DQG SURYLGHV DQRWKHU HFRQRPLF GULYHU IRU WKLV LQGLJHQRXV FRPPXQLW\ 7KLV DUHD LV KRPH WR NQRZQ QDWLYH DQG FXOWLYDWHG VSHFLHV RI SRWDWR &RQVLVWLQJ RI YDULHWLHV RI WKH VSHFLHV DQG RYHU YDULHWLHV IRXQG DURXQG WKH ZRUOG

6HFRQG &LW\ &$6( 5(9,(:6

/2&$7,21 &XVFR 9DOOH\ 3HUX '(6,*1(5 4XHFKXD 3HRSOH 352-(&7 7<3( 3DUN 3UHVHUYH 6,=( DFUH <($5 &203/(7(' \HDUV DJR .(< &21&(376 $JULFXOWXUH &XOWXUDO 3UHVHUYDWLRQ (FRQRPLF 'HYHORSPHQW (FR 7RXULVP $JUR 7RXULVP +DELWDW &UHDWLRQ 3UHVHUYDWLRQ DQG 5HVWRUDWLRQ


'(6,*1 ,03/,&$7,216 +HOSV WR FUHDWH DQ DOWHUQDWLYH GHYHORSPHQW PRGHO WKDW VXSSRUWV FXOWXUDO LGHQWLW\ DQG DOORZV IRU FXOWXUDO UHVLOLHQF\ -RE FUHDWLRQ IRU QDWLYH SHRSOH &RQVHUYDWLRQ DQG SUHVHUYDWLRQ RI WUDGLWLRQDO ODQGVFDSHV DQG FXOWXUDO SUDFWLFHV 6XSSRUWV ELRGLYHUVLW\ DQG DJURELRGLYHUVLW\ WR VXSSRUW WKH ORFDO FRPPXQLW\ &UHDWHV D SRVLWLYH UHODWLRQVKLS EHWZHHQ KXPDQV DQG WKHLU QDWXUDO DQG VRFLDO HQYLURQPHQW


6HFRQG &LW\ &$6( 5(9,(:6


7KH FDVH VWXGLHV H[DPLQHG LQ WKLV VHFWLRQ KDYH DOO SURYLGHG JUHDW LQVLJKW LQWR SRWHQWLDO GHVLJQ VWUDWHJLHV WKDW FRXOG EH LPSOHPHQWHG LQ &ROyQ +RZHYHU EDVHG RQ WKH QHHGV DQG H[LVWLQJ FRQGLWLRQV LQ &ROyQ EHVW SUDFWLFHV IURP HDFK RI WKH VHOHFWHG FDVH VWXGLHV LGHQWLÀHG GHVLJQ LPSOLFDWLRQV ZHUH VHOHFWHG *5((1 ,1)5$6758&785( ‡ 0DMRU SURSHUW\ YDOXH LQFUHDVH IRU VXUURXQGLQJ FRPPXQLW\ ‡ 6DIH UHFUHDWLRQDO VSDFHV IRU ORFDOV ‡ +XPDQL]HG D FHQWUDO KLJK YROXPH FRUULGRU DQG LPSURYHG HQYLURQPHQWDO TXDOLW\ ‡ ,QFRUSRUDWHG VXVWDLQDEOH SURFHVVHV LQWR WKH GHVLJQ RI WKH SURMHFW WKDW LQFOXGHG JUHHQ VWRUPZDWHU LQIUDVWUXFWXUH QDWLYH SODQWV LQFUHDVHG SHUPHDELOLW\ DQG DGDSWLYH UH XVH VWUDWHJLHV IRU H[LVWLQJ EXLOW IRUP ‡ ,QFRUSRUDWLRQ RI DQ HFRQRPLF UHYLWDOL]DWLRQ VWUDWHJ\ IRU WKH FRPPXQLW\ RI WKH VXUURXQGLQJ FRUULGRU ‡ &DSLWDOL]HV RQ XQGHUXWLOL]HG VSDFH /,1($5 3$5.6 $1' 3520(1$'(6 ‡ 3HGHVWULDQ RQO\ FLUFXODWLRQ SDWWHUQV ‡ 6SDWLDO OD\RXW LV GLYLGHG LQWR XQLTXH VHFWLRQV WKDW VHUYH HDFK LQGLYLGXDO FRPPXQLW\ WKDW LQWHUVHFWV ZLWK WKH PDOO ‡ 3URYLGHV D OLQN EHWZHHQ FRPPXQLWLHV ‡ 2IIHUV SXEOLF RSHQ VSDFH ZLWKLQ D GHQVH XUEDQ IDEULF ‡ 3URYLGHV D PXOWLWXGH RI UHFUHDWLRQDO DFWLYLWLHV IRU GLYHUVH XVHU JURXSV WKDW KDYH EHHQ IXQFWLRQDOO\ VHSDUDWHG WKURXJK FRORU FRRUGLQDWHG ]RQLQJ 3267 ,1'8675,$/ :$7(5)52176 ‡ 0DULWLPH DFWLYLWLHV ZHUH SUHVHUYHG DQG HQKDQFHG ‡ 5H SXUSRVLQJ RI H[LVWLQJ VLWH PDWHULDO ‡ $GDSWLYH UHXVH RI ODQGVFDSH DQG DTXDWLF DFFHVV ‡ 7KH XVH RI QHZ HQYLURQPHQWDO WHFKQRORJLHV IRU WKH EHQHÀW RI XUEDQ HFRORJLHV ‡ )OH[LELOLW\ RI VSDWLDO OD\RXW WR DOORZ IRU D PRUH SHUVRQDOL]HG XVHU H[SHULHQFH ‡ &RORUIXO VLWH DPHQLWLHV DGG D JUHDWHU VHQVH RI SODFH DQG DHVWKHWLF FKDUP ‡ 'LYLVLRQ RI VLWH VSDFHV ZLWKLQ WKH ODQGVFDSH WR DOORZ IRU PXOWLIXQFWLRQDO XVH 6867$,1$%/( 35$&7,&(6 ‡ &UHDWHG JUHDWHU QXPEHU RI MREV IRU ORFDOV ‡ 3D\V FORVH DWWHQWLRQ WR WUDGLWLRQV YDOXHV DQG SUDFWLFHV RI WKH ORFDO FXOWXUH ‡ 8WLOL]HV ORFDO PDWHULDO DQG FUDIWVPHQ ‡ *XHVW UHFHLYH D JUHDW GHSWK RI FXOWXUDO LPPHUVLRQ LQ ERWK WKH QDWXUDO HQYLURQPHQW DQG FRPPXQLW\ ‡ (GXFDWLRQDO RSSRUWXQLWLHV IRU JXHVW



6,7( &217(;7 *(20253+2/2*< &/,0$7( &8/785( '(02*5$3+,&6 $)52 3$1$0$1,$16 (&2120,&6 85%$1 )250 /$1' 86( 6,7( 2%6(59$7,216 6,7( ,0$*(6 23325781,7,(6

0DLQ KLJKZD\ HQWHULQJ WKH FLW\ RI &RORQ


C

6HFRQG &LW\ 6,7( $1$/<6,6


3529,1&(6 2) 3$1$0É 3DQDPi LV FRPSULVHG RI SURYLQFHV DQG VXE SURYLQFLDO OHYHO LQGLJHQRXV UHJLRQV DOVR NQRZQ DV FRPDUFDV 7ZR RXW RI WKH FRPDUFDV DUH FRQVLGHUHG

FRUUHJLPLHQWRV RU PXQLFLSDOLWLHV +LJKOLJKWHG DERYH LV WKH &ROyQ 3URYLQFH &ROyQ FLW\ LV ORFDWHG LQ WKH &ROyQ 3URYLQFH DQG LV WKH FDSLWRO FLW\ RI WKH SURYLQFH

C


+HPLVSKHUH DQG PDNHV XS FORVH WR RI WKH FLW\ $OWKRXJK &ROyQ &LW\ LV D GHQVHO\ XUEDQ DUHD LW LV VXUURXQGHG E\ PDVVHV RI UDLQIRUHVW ZLWK 5LR &KDJUHV 1DWLRQDO 3DUN MXVW HDVW RI WKH FLW\ DQG *DWXQ /DNH WR WKH VRXWKZHVW 7KH FLW\ LV KRPH WR RQH RI WKH 3DQDPi &DQDO·V ORFNV DQG WKH *DWXQ 'DP ZKLFK SURYLGHV ODUJH DPRXQWV RI K\GUR HOHFWULF SRZHU IRU WKH FRXQWU\ 7KHUH DUH WZR PDMRU KLJKZD\V ² DQG 3DQDPi &ROyQ ([SUHVVZD\ WKDW PRYH QRUWK DQG VRXWK IURP 3DQDPi &LW\ WR &ROyQ WKURXJK WKH FDQDO EDVLQ 7KH FLW\ RI &ROyQ 3DQDPi LV ORFDWHG MXVW QRUWK RI 3DQDPi &LW\ DQG LV WKH VHFRQG ODUJHVW FLW\ LQ 3DQDPi ZLWK D WRWDO DUHD RI NP VT PL &ROyQ LV WKH $WODQWLF SRUW HQWUDQFH WR WKH 3DQDPi &DQDO DQG D PDMRU KXE RI WUDGH IRU WKH FRXQWU\ 7KH SHQLQVXOD LV ERUGHUHG E\ WKH ZDWHUV RI WKH &DULEEHDQ 6HD ZLWK WKH %DKLD /LPRQ WR WKH ZHVW DQG WKH %DKLD 0DQ]DQLOOR WR WKH HDVW ,W LV KRPH WR WKH &ROyQ )UHH =RQH ZKLFK LV WKH ODUJHVW )UHH 7UDGH =RQH LQ WKH :HVWHUQ

6HFRQG &LW\ 6,7( $1$/<6,6

&ROyQ ZDV FRQVWUXFWHG DV DSDUW RI WKH 3DQDPDQLDQ UDLO V\VWHP ² DV D TXLFNHU URXWH WR &DOLIRUQLD GXULQJ WKH *ROG 5XVK 7KH 3DQDPi 5DLOURDG VWLOO H[LVW WUDQVSRUWLQJ ERWK SHRSOH DQG JRRGV WR DQG IURP WKH $WODQWLF SRUW LQ &ROyQ DQG WKH 3DFLÀF SRUW RI %DOERD LQ 3DQDPi &LW\ 7KH UDLO OLQH WUDYHOV DGMDFHQW WR WKH 3DQDPi &DQDO DQG RIIHUV WRXULVW DQG WUDYHOHUV D YHU\ VFHQLF YLHZ RI WKH FRXQWU\ DQG FDQDO


7KH IROORZLQJ PDS JLYHV D GHWDLOHG RYHUYLHZ RI WKH 3DQDPi &DQDO V\VWHP ZKLFK LQFOXGHV &ROyQ 7KLV LV WR LOOXVWUDWLRQ VKRZV &ROyQ·V JHRJUDSKLF UHODWLRQVKLS WR WKH 3DQDPi &DQDO /RFNV 3DQDPi 5DLOURDG *DWXQ /DNH DQG WKH FLWLHV RI *DPERD DQG 3DQDPi &LW\

'LDJUDP RI WKH 3DQDPD &DQDO


%RUGHUHG E\ &RVWD 5LFD WR WKH ZHVW DQG &RORPELD WR WKH VRXWKHDVW 3DQDPi IXQFWLRQV DV D ODQG EULGJH FRQQHFWLQJ 1RUWK DQG 6RXWK $PHULFD 7KLV VPDOO LVWKPXV GLYLGHV WKH $WODQWLF 2FHDQ DQG &DULEEHDQ 6HD WR WKH QRUWK DQG WKH 3DFLÀF 2FHDQ WR WKH VRXWK 7KH RQO\ OLQN EHWZHHQ WKHVH WZR ODUJH ERGLHV RI ZDWHU EHLQJ WKH PDQ PDGH 3DQDPi &DQDO =RQH +DUGLQJ

6HFRQG &LW\ 6,7( $1$/<6,6


$ FHQWUDO VSLQH RI PRXQWDLQV DQG KLOOV PDNH XS WKH GRPLQDQW IHDWXUH LQ WKH FRXQWULHV ODQGVFDSH DQG LV NQRZQ DV WKH FRXQWULHV ´&RQWLQHQWDO 'LYLGHµ 7KH QRUWKHUQ FRDVW 3DQDPD LV ERUGHUHG E\ D QXPEHU RI QDWXUDO KDUERUV DQG DUFKLSHODJRV WKDW KRVW EHDXWLIXO EHDFKHV HGJHG QH[W WR PDVVLYH DPRXQWV RI MXQJOH PDNLQJ XS WKH UDLQIRUHVW RI 3DQDPi 3DQDPi·V MXQJOHV DUH VRPH RI WKH ODUJHVW LQ WKH $PHULFDV· IDOOLQJ VHFRQG RQO\ WR WKH $PD]RQ 5DLQIRUHVW LQ 6RXWK $PHULFD 7KH QDWXUDO KDUERUV WKDW ERUGHU WKH FRXQWU\ RQ ERWK WKH QRUWKHUQ DQG VRXWKHUQ FRDVW PDGH LGHDO ORFDWLRQV IRU WKH IHDWXUH LQVWDOODWLRQ RI WZR ODUJH SRUWV RI WUDGH 3RUW RI &ULVWREDO ORFDWHG RQ WKH $WODQWLF FRDVW LQ &ROyQ DQG 3RUW RI %DOERD ORFDWHG RQ WKH 3DFLÀF FRDVW 7KH HQWLUH FRXQWU\·V FRDVWOLQHV H[WHQGV DSSUR[LPDWHO\ NP :LNLSHGLD

7KLV H[WHQVLYH ODQGVFDSH LV DOVR KRPH WR KXQGUHGV RI ULYHUV WKDW IRUP D QXPEHU RI FRDVWDO GHOWDV 0DQ\ RI WKHVH ULYHUV DUH XQQDYLJDEOH +RZHYHU WKH 5LR &KDJUHV ORFDWHG LQ FHQWUDO 3DQDPi LV RQH RI WKH IHZ ULYHUV ZLGH HQRXJK WR QDYLJDWH DQG LV D YLWDO VRXUFH RI K\GURHOHFWULF SRZHU ZLWKLQ WKH FRXQWU\ 3DUW RI WKH ULYHU ZDV GDPPHG WR IRUP WKH *DWXQ /DNH +DUGLQJ


6HFRQG &LW\ 6,7( $1$/<6,6


&(/&,86

0,//,0(7(656

3DQDPi LV NQRZQ IRU LV WURSLFDO FOLPDWH 7KH WHPSHUDWXUH WKURXJKRXW WKH \HDU UHPDLQV UHODWLYHO\ DYHUDJH PD[ XQLIRUP 5DQJLQJ IURP PLQLPXPV GDLO\ DYHUDJH RI Ü& Ü) WR DYHUDJH PLQ PD[LPXPV WKDW GR QRW XVXDOO\ H[FHHG Ü& 727$/ <($5/< 5$,1)$// Ü) $OWKRXJK WKHUH 00 ,1 LV YHU\ OLWWOH VHDVRQDO YDULDWLRQ LQ UHJDUGV WR WHPSHUDWXUH WKH -DQ 'HF \HDU LQ 3DQDPi FDQ EH GLYLGHG EHWZHHQ WKH UDLQ\ DQG GU\ VHDVRQV 7KH UDLQ\ VHDVRQ FDQ ODVW IRU VHYHQ WR QLQH PRQWKV IURP WKH PRQWKV RI $SULO WR 'HFHPEHU 0RVW RI WKH FRXQWU\ UHFHLYHV LWV UDLQIDOO GXULQJ WKLV WLPH RI \HDU 5HVXOWLQJ VRPHWLPHV LQ DV OLWWOH DV PLOOLPHWHUV LQFKHV WR RYHU PLOOLPHWHUV LQFKHV SHU \HDU +RZHYHU WKH &DULEEHDQ FRDVW UHFHLYHV OHVV UDLQIDOO WKDQ WKDW RI WKH 3DFLÀ F DQG LV DOVR FRQVLGHUDEO\ ZDUPHU :LNLSHGLD 7KH FRPELQDWLRQ RI FRQVLVWHQW UDLQ DQG VXQ VKLQH UHVXOW LQ KLJK UHODWLYH KXPLGLW\ 1

-XQH 0D\

$SU

0DU

)HE

'HF

-DQ

$OWKRXJK WKH FRXQWU\ UHFHLYHV D QXPEHU RI WKXQGHUVWRUPV LW LV RXWVLGH RI WKH KXUULFDQH EHOW +RZHYHU ODUJH ZDYHV WKUHDWHQ WKH FRDVWDO HGJHV RI WKH FRXQWU\ 7LGDO OHYHOV DUH D PDMRU FRQVLGHUDWLRQ DQG GHVLJQ FRQVWUDLQW IRU WKLV SURMHFW $FFRUGLQJ WR )UHH 7UDGH =RQH GHYHORSHUV DQ\ QHZ GHYHORSPHQW RQ WKH FRDVWOLQH RI &ROyQ PXVW EH DW PLQLPXP PHWHU IHHW DV D SURWHFWLYH SUHFDXWLRQ

7KH SUHYDLOLQJ ZLQGV DV QRWHG LQ WKH GLDJUDP WR WKH OHIW DUH IURP WKH QRUWKZHVW %UHH]HV GRPLQDWH WKH HYHQLQJ MXVW DIWHU GXVN DQG WHPSHUDWXUHV RQ WKH 3DFLÀ F VLGH RI WKH FRXQWU\ DQG FRQWLQHQWDO GLYHG DUH ORZHU WKDQ WKH &DULEEHDQ 7HPSHUDWXUHV DUH DOVR PXFK FRROHU LQ WKH FRXQWULHV KLJKODQGV :HDWKHU6SDUN FRP


:RPDQ GUHVVHG LQ WKH WUDGLWLRQDO QDWLRQDO GUHVV SDUWLFLSDWLQJ LQ WKH WUDGLWLRQDO WDPERULWR

3DQDPi LV D PRVDLF RI FXOWXUHV 7KH 3DQDPDQLDQ FXOWXUH GHULYHV LWV FXVWRPV IURP D FRPELQDWLRQ RI LQGLJHQRXV &DULEEHDQ 6SDQLVK (XURSHDQ DQG $IULFDQ FXOWXUHV +RZHYHU WKH SUDFWLFHV DUH SUHGRPLQDQWO\ 6SDQLVK DQG &DULEEHDQ 3DQDPi KDV DQ DUUD\ RI ULFK WUDGLWLRQV DQG IRONORUH WKDW DUH H[XGHG WKURXJK LWV FRORUIXO FLW\ SHRSOH DQG FORWKLQJ 7KHVH ORFDO WUDGLWLRQV FDQ EH H[SHULHQFHG WKURXJK D YDULHW\ RI IHVWLYDOV GDQFHV DQG ORFDO FXLVLQH 2QH RI WKH PRUH SRSXODU FXOWXUDO WUDGLWLRQV LV WKH WDPERULWR ² D 6SDQLVK GDQFH XVXDOO\ SHUIRUPHG LQ WKH EULJKWO\ FRORUHG QDWLRQDO GUHVV

6HFRQG &LW\ 6,7( $1$/<6,6


7KH SURYLQFH RI &ROyQ EHFDXVH RI LWV GHHS FRQQHFWLRQ WR :HVW ,QGLDQ DQG $IULFDQ FXOWXUH KDV D QXPEHU RI LWV RZQ XQLTXH FXVWRPV 7KH )HVWLYDO RI 'LDEORV &RQJRV DQG 'LD GH OD (WQLFLGDG 1HJUR WKH 'D\ RI %ODFN (WKQLFLW\ DUH D IHZ RI WKH IHVWLYDOV WKDW KDYH WKHLU URRWV LQ WKH ULFK $IULFDQ DQG &DULEEHDQ WUDGLWLRQV WKDW VWLOO H[LVW LQ &ROyQ WRGD\ 3DQDPDQLDQ IRRG LV DOVR D K\EULG RI WKH PDQ\ FXOWXUHV WKDW KDYH VHWWOHG LQ 3DQDPi

&ROyQ HVSHFLDOO\ RIIHUV VRPH RI WKH EHVW FXOLQDU\ H[SHULHQFHV WKURXJKRXW WKH FRXQWU\ $OWKRXJK 3DQDPDQLDQ FXOWXUH LV WUDGLWLRQDOO\ YHU\ OLYHO\ IXQ ORYLQJ DQG UHOD[HG ² EXVLQHVV DQG SURIHVVLRQDO FXVWRPV DSSO\ D PXFK PRUH IRUPDO FRQYHQWLRQ &HUHPRQ\ DQG IRUPDOLW\ DUH HVWDEOLVKHG SURWRFRO WKURXJKRXW DOO EXVLQHVV LQ 3DQDPi JRYHUQPHQW RU RWKHUZLVH


.XQD :RPDQ 7KH .XQD ,QGLDQV DUH WKH LQGLJHQRXV SHRSOH RI 3DQDPi 7KH WUDGL WLRQDO FORWKLQJ ZRUQ E\ PRVW .XQD ZRPHQ LV FRPSULVHG RI WUDGLWLRQDO KDQG FUDIWHG WH[WLOHV NQRZQ DV PRODV


3$1$0É 3238/$7,21

(7+1,&,7<

PLOOLRQ

&2/Ð1 3238/$7,21

2)),&,$/ /$1*8$*( 6SDQLVK +RZHYHU YDVW PDMRULW\ DUH ELOLQJXDO ZLWK (QJOLVK DV D VHFRQG ODQJXDJH

5(/,*,21 5RPDQ &DWKROLF

('8&$7,21 $Q HVWLPDWHG RI 3DQDPDQLDQV DUH OLWHUDWH 7KH ÀUVW \HDUV RI SULPDU\ VFKRRO DUH UHTXLUHG E\ ODZ 7KHUH DUH DSSUR[LPDWHO\ VWXGHQWV FXUUHQWO\ HQUROOHG LQ JUDGH VFKRRO DUH HQUROOHG LQ WKH VL[ VHFRQGDU\ JUDGHV 3DQDPDQLDQ VWXGHQWV DWWHQG WKH 8QLYHUVLW\ RI 3DQDPi WKH 7HFKQRORJLFDO 8QLYHUVLW\ DQG WKH 8QLYHUVLW\ RI 6DQWD 0DULD /D $QWLJXD D SULYDWH &DWKROLF LQVWLWXWLRQ ,Q 3DQDPi WKHUH DUH LQVWLWXWLRQV RI KLJKHU HGXFDWLRQ

0HVWL]R :HVW ,QGLDQ $IULFDQ :KLWH 1DWLYH $PHULQGLDQ +RZHYHU RI WKH SRSXODWLRQ DUH HVWLPDWHG WR KDYH $IULFDQ DQFHVWU\

85%$1 *52:7+ RI WKH SRSXODWLRQ OLYH LQ XUEDQ HQYLURQPHQWV LQ WKH FRUULGRU FRQQHFWLQJ &ROyQ DQG 3DQDPi &LW\ 2QO\ RI ODQG LQ 3DQDPi LV LQKDELWHG

(&2120< 5HDO *'3 ELOOLRQ DV RI

$QQXDO *URZWK 5DWH HYLGHQFH WKDW 3DQDPi V SHU FDSLWD *'3 KDV PRUH WKDQ GRXEOHG RYHU WKH SDVW \HDUV 1DWXUDO 5HVRXUFHV 7LPEHU VHDIRRG FRSSHU RI 3DQDPi V *'3 LV VHUYLFH VHFWRU ÀQDQFH LQVXUDQFH FDQDO UHODWHG VHUYLFHV &ROyQ )UHH =RQH 6WDWH JRY


:HVW $IULFDQ·V ZHUH DOVR WUDQVSRUWHG GXULQJ WKH VODYH WUDGH WR 3DQDPi WR DLG LQ WKH VKLSSLQJ RI VLOYHU DQG RWKHU SUHFLRXV PHWDOV (VFDSHG VODYHV ZKR ÁHG IURP WKHLU 6SDQLVK PDVWHUV WR WKH FRXQWU\·V PRXQWDLQV KDYH EHHQ UHIHUUHG WR DV WKH &LPDUURQV :LNLSHGLD

7KH ODUJHVW HWKQLF JURXS LQ 3DQDPi DUH WKH 0HVWL]RV PL[HG ZKLWH DQG 1DWLYH $PHULFDQ 1DWLYH $PHULFDQ DQG ZKLWH SRSXODWLRQ·V UHPDLQ VPDOO WKURXJKRXW WKH FRXQWU\ ZKLWH DQG 1DWLYH $PHULFDQ 7KHUH LV D VLJQLÀFDQW $IUR 3DQDPDQLDQ SRSXODWLRQ WRWDOLQJ DURXQG +RZHYHU RI WKH SRSXODWLRQ LV HVWLPDWHG WR KDYH $IULFDQ DQFHVWU\ +DUGLQJ 7KH HWKQLF GHPRJUDSKLFV IRU &ROyQ DUH GLIÀFXOW WR FRPH E\ EXW EDVHG RQ REVHUYDWLRQ FRQYHUVDWLRQ KLVWRU\ DQG PXFK WLPH VSHQW OLYLQJ LQ WKH &ROyQ 3URYLQFH LW LV VDIH WR VD\ WKDW PDMRULW\ RI WKH SRSXODWLRQ LQ &ROyQ LV RI $IULFDQ DQG &DULEEHDQ GHVFHQW

$IUR 3DQDPDQLDQV DUH GHFHGHQW IURP D ODUJH JURXS RI PLJUDQW ZRUNHUV EURXJKW WR &ROyQ GXULQJ WKH FRQVWUXFWLRQ RI WKH 3DQDPDQLDQ UDLOZD\ DQG 3DQDPi &DQDO 0DQ\ RI WKHVH ZRUNHUV ZHUH IURP WKH :HVW ,QGLHV ZLWK DQFHVWU\ LQ FRXQWLHV VXFK DV -DPDLFD 0DUWLQLTXH %DUEDGRV DQG 7ULQLGDG /DUJH SRSXODWLRQV RI

6HFRQG &LW\ 6,7( $1$/<6,6

7KHVH GLVWLQFWLRQV LQ DQFHVWU\ DPRQJVW WKH $IUR 3DQDPDQLDQV KDYH UHVXOWHG LQ WZR VXE FDWHJRULHV $IUR &ROyQLDO WKRVH GHVFHQGHG IURP VODYHV ZKR LQWHUPLQJOHG ZLWK WKH LQGLJHQRXV SHRSOH DQG $IUR $QWLOOHDQ WKRVH RI :HVW ,QGLDQ DQFHVWU\ 7KLV ODUJH LQÁX[ RI %ODFNV LQWR 3DQDPi GXULQJ WKH *ROG 5XVK DQG FDQDO FRQVWUXFWLRQ FDXVHG FRQÁLFW EHWZHHQ WKH H[LVWLQJ QDWLYH 0HVWL]R SRSXODWLRQV GXULQJ WKH HDUO\ V 0HVWL]RV ZKR V VWDWXV LQ 3DQDPi ZDV DW RQH SRLQW DERYH WKDW RI %ODFNV ZHUH QRZ EHLQJ OXPSHG LQ WRJHWKHU ,Q ODZV ZHUH SDVVHG LQ 3DQDPi WR GHFUHDVH LPPLJUDWLRQ IURP WKH :HVW ,QGLHV EDUULQJ QRQ 6SDQLVK VSHDNLQJ EODFNV IURP WKH FRXQWU\ 0LQRULW\ULJKWV RUJ $FFRUGLQJ WR D 1HZ <RUN 7LPHV DUWLFOH E\ 5DQGDO $UFKLEROG PDQ\ &ROyQLWHV EHOLHYH WKDW UDFLDO VWHUHRW\SHV FRQWLQXH WR FUHDWH GLVFULPLQDWLRQ WKURXJKRXW WKH FRXQWU\ 'DUNHU VNLQQHG &ROyQLWHV DUH SHUFHLYHG DV OD]\ WKLHYHV 7KLV GLVFULPLQDWLRQ KDV UHVXOWHG LQ YDVW XQHPSOR\PHQW UDWHV DQG HGXFDWLRQDO GLVSDULW\ WKURXJKRXW WKH FLW\ $UFKLEROG TXRWHV KLVWRU\ SURIHVVRU -RUJH /XLV 0DFLDV )RQVHFD IURP 8QLYHUVLW\ RI 3DQDPi LQ &ROyQ VD\LQJ ´UDFLDO H[FOXVLRQ KDV EHHQ D EXUGHQ RQ WKH GHYHORSPHQW RI SXEOLF SROLF\ UHODWHG WR %ODFN 3DQDPDQLDQV LQ JHQHUDO DQG &ROyQ LQ SDUWLFXODUµ 0DQ\ EHOLHYH WKDW WKH FRXQWULHV JRYHUQPHQW ´ZRXOG SUHIHU WR IRUJHW &ROyQµ $UFKLEROG


$IUR 3DQDPDQL DQV LQ PDUFKLQJ LQ &RORQ


=21$ /,%5( '( &2/Ð1 2FFXS\LQJ RYHU DFUHV RI ODQG LQ &ROyQ DQG ORRNLQJ WR H[SDQG WKH =RQD /LEUH 'H &ROyQ RU &ROyQ )UHH =RQH &)= LV D PDMRU HQWLW\ LQ WKH FLW\ 2YHU ELOOLRQ ZRUWK RI JRRGV ZHUH LPSRUWHG LQWR WKH &)= LQ DQG ELOOLRQ VROG ZLWKLQ WKH VDPH \HDU 7KLV KDV PDGH WKH &)= D PDMRU FRPSRQHQW DQG EUHDG ZLQQHU LQ WKH 3DQDPDQLDQ PDUNHW 7KH &)= KDV XQLTXH DFFHVV WR WKH HPHUJLQJ PDUNHWV RI /DWLQ $PHULFD DQG WKH &DULEEHDQ 7KLV KDV PDGH WKH &)= DQG WKH FLW\ RI &ROyQ NH\ FRQGXLWV IRU LQWHUQDWLRQDO WUDGH LQ 3DQDPi 7KH &)= ZDV HVWDEOLVKHG LQ D OLWWOH RYHU

&RORQ )UHH =RQH LPSRUWV DQG H[SRUWV JUHZ E\ EHWZHHQ DQG \HDUV DIWHU WKH HVWDEOLVKPHQW RI WKH 3DQDPi &DQDO DQG LW KDV EHHQ FUXFLDO WR 3DQDPi V HFRQRPLF GHYHORSPHQW HYHU VLQFH $V WKH ODUJHVW IUHH WUDGH ]RQH LQ WKH :HVWHUQ +HPLVSKHUH PRYLQJ DOPRVW ELOOLRQ 7(8V 7ZHQW\ )RRW (TXLYDOHQW 8QLW\ RU VKLSSLQJ FRQWDLQHU LQ DQG ELOOLRQ LQ WKH &)= KDV HQDEOHG WKH HFRQRPLF JURZWK RI PDQ\ /DWLQ $PHULFDQ FRXQWULHV /LOO\ DQG $VVRFLDWHV

7KH &)= V SRVLWLRQ DV D IUHH WUDGH ]RQH DORQJ ZLWK LWV SULPH ORFDWLRQ EHWZHHQ WKH 86 DQG /DWLQ $PHULFD KDYH FUHDWHG SHUVLVWHQW SUREOHPV ZLWK FRUUXSWLRQ DQG GUXJ UHODWHG

6HFRQG &LW\ 6,7( $1$/<6,6

YLROHQFH WKDW LQHYLWDEO\ VSLOO RYHU LQ WR WKH FLW\ RI &ROyQ 'HVSLWH WKH VXFFHVV RI WKH &)= LW KDV JLYHQ OLWWOH EDFN WR WKH FLW\ 7KH 1DWLRQDO $VVHPEO\ DOORZHG IRU WKH VDOH RI VWDWH RZQHG ODQG LQ WKH &)= WR SULYDWH LQYHVWRUV KRZHYHU RI WKH UHYHQXH ZHQW WR WKH QDWLRQDO JRYHUQPHQW ZKLOH RQO\ ZHQW WR LQYHVWPHQWV LQ WKH FLW\ 2QH KXQGUHG PLOOLRQ LQ WRWDO DQQXDO UHYHQXH KDV EHHQ SURYLGHG E\ WKH &)= WR WKH FHQWUDO JRYHUQPHQW ZKLFK XVHV WKH PRQH\ DV LW SOHDVHV 7KH &)= LV DOVR JXLOW\ RI QRW KLULQJ PDQ\ &ROyQLWHV 0DMRULW\ RI WKH ]RQHV HPSOR\HHV GR QRW HYHQ UHVLGH LQ &ROyQ $UFKLEROG $ UHFHQW VWXG\ FODLPHG WKDW RI 3DQDPi V PDQDJHPHQW SRVLWLRQV DUH KHOG E\ QRQ 3DQDPDQLDQV ZKR VWXGLHG RXWVLGH RI 3DQDPi /LOO\ DQG $VVRFLDWHV 7KLV KDV DWWULEXWHG JUHDWO\ WR 3DQDPi V XQHTXDO GLVWULEXWLRQ RI ZHDOWK DQG LWV VWDWXV DV RQ RI WKH ZRUVW UDWLQJV IRU (PSOR\LQJ :RUNHUV DFFRUGLQJ WR WKH :RUOG %DQN 6XUVH 3LHUSRLQW WKH YLFH SUHVLGHQW RI WKH IUHH WUDGH ]RQH EXVLQHVV DVVRFLDWLRQ ZDV TXRWHG VD\LQJ 7KH IUHH ]RQH ZDV QHYHU GHVLJQHG WR FDUU\ WKH IDWH RI &ROyQ $UFKLEROG ,W LV WLPH WKH &)= LQYHVWHG VRPH RI LW V VXFFHVV EDFN LQWR &ROyQ 7KURXJK VRPH FUHDWLYH WKLQNLQJ LQQHU FLW\ MRE WUDLQLQJ DQG HGXFDWLRQ WKH &)= FRXOG GR PXFK PRUH WR KHOS WR UHYLYH WKH FLW\ $OWKRXJK WKH UHVSRQVLELOLW\ GRHV QRW VROHO\ UHVW RQ WKH VKRXOGHUV RI WKH &)= LW LV LPSRUWDQW WKDW WKLV PDMRU HQWLW\ ZLWKLQ WKH 3DQDPDQLDQ HFRQRP\ JLYH EDFN


(QWUDQFH WR WKH &RORQ )UHH =RQH


0

&ROyQ·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ÀFDQW ODQG SDWWHUQ KDYH EHFRPH WKH IRXQGDWLRQ RQ ZKLFK DOO GHVLJQ DSSOLFDWLRQ ZLOO EH GHYHORSHG

6HFRQG &LW\ 6,7( $1$/<6,6


&(175$/ 63,1(

0

7KH GRPLQDWLQJ IHDWXUH ZLWKLQ WKH FLW\·V FRQÀJXUDWLRQ LV 3DVHR GHO &HQWHQDULR &HQWHQQLDO :DON 7KH FHQWUDO ERXOHYDUG FRPSULVHG RI PXOWLSOH SOD]DV DQG GHQVH WUHH FDQRS\ LV WKH EDFNERQH RI ERWK IRUP DQG IXQFWLRQ LQ &ROyQ 7KH SOD]DV RI 3DVHR GHO &HQWHQDULR DUH D NH\ SDUW RI WKH FLW\ VWUXFWXUH DQG WKH GD\ WR GD\ OLYHV RI UHVLGHQW &ROyQLWHV $ QXPEHU RI KLVWRULF VWDWXHV GHFRUDWH WKH PDQ\ SOD]DV DORQJ WKH FHQWUDO SURPHQDGH FRPPHPRUDWLQJ WKH GHYHORSPHQW RI WKH FLW\ 0L[HG XVH ODQG GHYHORSPHQW DORQJ WKH FHQWUDO SURPHQDGH SURYLGH ÀUVW OHYHO UHWDLO DQG PDUNHW VSDFH DORQJ ZLWK XSSHU OHYHO UHVLGHQWLDO OLYLQJ

,1'8675< $1' &200(5&(

0

7KH 3XHUWR GH &ROyQ 3RUW RI &ROyQ DQG =RQD /LEUH GH &ROyQ &ROyQ )UHH =RQH &)= PDNH XS WKH VRXWKHUQ SRUWLRQ RI WKH FLW\ $Q LQIRUPDO PDUNHW DQG EXV VWRS ORFDWHG DW WKH HQWUDQFH WR 3DVHR GHO &HQWHQDULR LV ZHGJHG EHWZHHQ WKH &)= DQG 3RUW IXQFWLRQLQJ DV WKH QH[XV SRLQW IRU WUDGH DQG FRPPHUFH LQ &ROyQ 7KH 3DQDPi &DQDO 5DLOZD\ DQG $WODQWLF 3DVVHQJHU 6WDWLRQ DUH DOVR ORFDWHG LQ WKH VRXWKHUQ SRUWLRQ RI WKH VLWH WUDQVSRUWLQJ ERWK SHRSOH DQG JRRGV EDFN DQG IRUWK EHWZHHQ 3DQDPi &LW\ DQG &ROyQ &RPPHUFH DQG WUDGH PDLQO\ WDNH SODFH LQ WKLV SRUWLRQ RI WKH VLWH

+,*+ '(16,7< 0,;(' 86( &RPSULVHG RI GHQVH UHVLGHQWLDO DQG UHWDLO ZLWK EXLOGLQJV UDQJLQJ IURP VWRULHV LQ KHLJKW WKH FHQWUDO SRUWLRQ RI WKH FLW\ LV EXVWOLQJ ZLWK PRYHPHQW DQG DFWLYLW\ 0DMRULW\ RI &ROyQ·V UHVLGHQWV UHVLGH ZLWKLQ WKLV SRUWLRQ RI WKH FLW\ &ROyQ WKH RQO\ FUXLVH VKLS GRFNLQJ WHUPLQDO LQ &ROyQ LV DOVR ORFDWHG ZLWKLQ WKLV FHQWUDO VHFWLRQ :LWK GLUHFW DFFHVV WR WKH &)= DQG ODFN RI RQ VWUHHW YLVLELOLW\ GXH WR KLJK GHQVLW\ EXLOW IRUP DQG QDUURZ VWUHHWV WKLV DUHD LV IHUWLOH JURXQG IRU FULPH LQ &ROyQ

0

0(',80 '(16,7< 5(6,'(17,$/ 7KH QRUWKHUQ VHFWLRQ RI WKH FLW\ LV SULPDULO\ UHVLGHQWLDO ZLWK D IHZ FXOWXUDO DQG HGXFDWLRQDO LQVWLWXWLRQV WKURXJKRXW $ FRPELQDWLRQ RI KLJK ULVH DSDUWPHQW SURMHFWV DQG VLQJOH IDPLO\ UHVLGHQWLDO KRPHV DUH ORFDWHG KHUH 7KLV SRUWLRQ RI WKH FLW\ LV DOVR KRPH WR WZR KLJK HQG OX[XU\ QHLJKERUKRRGV

0


,1)250$/ 6(77/(0(17

0

/RFDWHG RQ WKH ZHVWHUQ FRDVW RI &ROyQ MXVW QRUWK RI WKH SRUW LV DQ RSHQ SORW RI EHDFK IURQW SURSHUW\ WKDW LV QHLWKHU JRYHUQPHQW QRU SULYDWH ODQG +DYLQJ IRUPHG D QHLJKERUKRRG DOO WKHLU RZQ D FRPPXQLW\ RI IDPLOLHV LV FXUUHQWO\ VTXDWWLQJ RQ WKLV SLHFH RI ODQG 7KHUH DUH QR VTXDWWHU·V ULJKWV LQ 3DQDPi PDNLQJ WKLV VPDOO YLOODJH RI UHVLGHQWV YXOQHUDEOH WR LQFRPLQJ LQYHVWRUV DQG GHYHORSPHQW 7KH VPDOO EHDFK IURQW DUHD LV VKHOWHUHG IURP WKH HOHPHQWV E\ WKH SRUW WR WKH VRXWK DQG ODUJHU H[WUXVLRQ RI WKH SHQLQVXOD WR WKH QRUWK PDNLQJ LW D SULPH ORFDWLRQ IRU IXWXUH GHYHORSPHQW WKUHDWHQLQJ WKH OLYHOLKRRG RI WKH H[LVWLQJ UHVLGHQWV

6HFRQG &LW\ 6,7( $1$/<6,6


+RXVLQJ XQLW LQ &RORQ


0

*5((1 63$&( 6LJQLÀFDQW DPRXQWV RI JUHHQ VSDFH H[LVW DORQJ WKH FLW\ FRDVW OLQH 7KHVH VSDFHV DUH ERWK SULYDWHO\ DQG SXEOLFO\ RZQHG DQG XVHG ZLGHO\ E\ WKH UHVLGHQWV RI &ROyQ +RZHYHU GHVLJQDWHG SXEOLF JUHHQ VSDFHV DUH PLQLPDO ZLWKLQ WKH FLW\ 7KHUH DUH ODUJH DPRXQWV RI XQGHUXWLOL]HG VSDFHV EHWZHHQ EXLOGLQJV WKDW FRXOG EH SRWHQWLDO VSDFHV IRU SXEOLF DQG VHPL SULYDWH HQJDJHPHQW

6HFRQG &LW\ 6,7( $1$/<6,6


6,*1,),&$17 1(,*+%25+22'6

0

7KUHH RI WKH ODUJHU KRXVLQJ FRPPXQLWLHV ZLWKLQ WKH FLW\ KDYH EHHQ LGHQWLÀHG LQ WKLV GLDJUDP 7ZR RI WKH FRPPXQLWLHV DUH UHIHUUHG WR DV ¶FRQMXQWRV· &RQMXQWRV LQ &ROyQ UHIHUV VSHFLÀFDOO\ WR KRXVLQJ FRPPXQLWLHV WKDW DUH LQ PDQ\ FDVHV ORZ LQFRPH DQG SRWHQWLDOO\ DVVRFLDWHG ZLWK RUJDQL]HG FULPLQDO DFWLYLW\ 7KH QHLJKERUKRRG LGHQWLÀHG LQ WKH QRUWKHDVW SRUWLRQ RI WKH VLWH LV NQRZQ DV %DUULR 1XHYR &ULVWREDO D FRPPXQLW\ FRPSULVHG SULPDULO\ RI VLQJOH IDPLO\ KRPHV 7KH UHPDLQLQJ FRQMXQWRV DUH &DVFR $QWLJXD RQ WKH ZHVWHUQ VLGH RI WKH SHQLQVXOD DQG $YHQLGD 6DQWD ,VDEHO VRXWKHDVW RI %DUULR 1XHYR &ULVWREDO 7KHVH QHLJKERUKRRGV DUH ODUJHO\ FRPSULVHG RI VWRU\ PXOWL IDPLO\ DSDUWPHQW EXLOGLQJV $YHQLGD 6DQWD ,VDEHO LV RQH RI WKH URXJKHVW FRQMXQWRV DQG LV LQ WKH PRVW QHHG RI UHKDELOLWDWLRQ

0$-25 &,5&8/$7,21

0

&LUFXODWLRQ ZLWKLQ WKH VLWH LV D VLPSOH JULG VWUXFWXUH ZLWK VRPH NH\ WKRURXJKIDUHV $OO RI WKH URDGV WKURXJKRXW WKH FLWH DUH PXOWLSXUSRVH ² PHDQLQJ WKH\ VXSSRUW ELNLQJ ZDONLQJ DQG YHKLFXODU WUDIÀF DOWKRXJK YHKLFXODU WUDIÀ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

6,7( $0(1,7,(6 7KH IROORZLQJ GLDJUDP LOOXVWUDWHV SUHYDLOLQJ RQ VLWH DPHQLWLHV RU DWWUDFWLRQV 0RUH LPSRUWDQWO\ WKH GLDJUDP VKRZFDVHV ZKHUH WKHVH DWWUDFWLRQV GR QRW RFFXU KLJKOLJKWLQJ YRLGV ZLWKLQ WKH FLW\ OD\RXW 7KH YRLGV RQ WKH ZHVWHUQ VLGH RI WKH VLWH LQGLFDWH ZKHUH QHZ GHYHORSPHQW FRXOG WDNH SODFH LQ DQ HIIRUW WR GUDZ PRUH YLVLWRU WRZDUGV WKLV SRUWLRQ RI WKH VLWH

0


@ :

>

= A ? 9

0

7KH IROORZLQJ VLWH LPDJHV SURYLGH D JOLPSVH LQWR WKH H[LVWLQJ FRQGLWLRQV LQ &ROyQ 7KH LPDJHV KDYH EHHQ GLYLGHG XS LQWR VHFWLRQV DFFRUGLQJ WR WKHLU ORFDWLRQ RQ VLWH 7KH DERYH PDS VKRZV WKH VHFWLRQ ORFDWLRQV ZKHUH HDFK VHW RI LPDJHV ZHUH WDNHQ IURP

6HFRQG &LW\ 6,7( $1$/<6,6



9

6HFRQG &LW\ 6,7( $1$/<6,6



6HFRQG &LW\ 6,7( $1$/<6,6


?


A

6HFRQG &LW\ 6,7( $1$/<6,6



6HFRQG &LW\ 6,7( $1$/<6,6


:


@

6HFRQG &LW\ 6,7( $1$/<6,6



6HFRQG &LW\ 6,7( $1$/<6,6


=


>

6HFRQG &LW\ 6,7( $1$/<6,6



B 7KH PDSV VKRZQ DUH IURP WKH LQLWLDO VLWH DQDO\VLV DQG LQYHQWRU\ SKDVH RI WKH SURMHFW 7KH\ DUH FRPSUHKHQVLYH RI DOO H[LVWLQJ FRQGLWLRQV RQ VLWH &ROOHFWHG ZKLOH LQ &ROyQ WKHVH PDSV LOOXVWUDWH ÀUVW LPSUHVVLRQV RI RSSRUWXQLWLHV DQG FRQVWUDLQWV 7KH WRS PDS FRQWDLQV D VHULHV RI QRWHV DERXW WKH VLWH 7KH EOXH QRWHV ZHUH FRQVLGHUHG WR EH FRQVWUDLQWV WKH JUHHQ RSSRUWXQLWLHV DQG WKH SLQN JHQHUDO REVHUYDWLRQV 7KH PDS RQ WKH ERWWRP LQFOXGHV QRWHV IURP FRQWDFWV LQ WKH FLW\ RI &ROyQ DORQJ ZLWK JHQHUDO ORFDWLRQ LQIRUPDWLRQ 7KH IROORZLQJ OLVWV FRQWDLQ EULHI VXPPDULHV RI WKH RSSRUWXQLWLHV DQG FRQVWUDLQV OLVWHG RQ HDFK RI WKH PDSV

23325781,7,(6 &RDVWDO RSHQ VSDFH 2XWVLGH RI WKH KXUULFDQH EHOW ([LVWLQJ KLJK ULVH GHYHORSPHQW DORQJ QRUWKHUQ FRDVW ([LVWLQJ FROOHJH FDPSXV ORFDWHG LQ WKH QRUWKHUQ SRUWLRQ RI WKH VLWH WKDW FRXOG SRVVLEO\ EH XVHG IRU VXPPHU KRXVLQJ IRU WRXULVW 6LQJOH IDPLO\ UHVLGHQWLDO FRPPXQLWLHV 1HZ 6FKRRO DQG 0HGLFDO &HQWHU &HQWUDO %RXOHYDUG ([LVWLQJ VWDGLXP VSDFH &DOPHU ZDWHUV RQ ZHVWHUQ FRDVW 7UDQVSRUWDWLRQ KXEV IRU EXV DQG WUDLQ QHDU IUHH ]RQH DQG SRUW ([LVWLQJ FUXLVH VKLS WHUPLQDO $PSKLWKHDWHU

6HFRQG &LW\ 6,7( $1$/<6,6

&21675$,176 +HDY\ FULPH /DUJH FRDVWDO RSHQ VSDFHV DUH PDMRULW\ SULYDWHO\ RZQHG 9DFDQW :DUHKRXVH 'LVWULFW RQ ZHVWHUQ FRDVW ,QIRUPDO VHWWOHPHQW RQ ZHVWHUQ ZDWHUIURQW /LWWOH WR 1R DFFHVV WR WKH IUHH ]RQH +LJK XQHPSOR\PHQW /RZ LQYHVWPHQW (YHU\WKLQJ EXLOW RQ WKH FRDVWDO HGJH PXVW EH DW OHDVW PHWHU KLJK 1R VDIH HDVW ZHVW SHGHVWULDQ FRQQHFWLRQ




'(6,*1 $5($ '(6,*1 352&(66 352*5$0 &21&(376 ),1$/ 0$67(5 3/$1 )2&86 $5($6 '(6,*1 (/(0(176


0

7KH DERYH PDS LOOXVWUDWHV WKH VHOHFWHG GHVLJQ DUHD ,W ZDV GHFLGHG WKDW DQ HQWLUH FLW\ PDVWHU SODQ ZDV QRW QHFHVVDU\ WR DFFRPSOLVK WKH JRDOV DQG REMHFWLYHV IRU WKLV SURMHFW $OWKRXJK &ROyQ FRQWDLQV D QXPEHU RI VLWHV ZLWK WKH SRWHQWLDO IRU UHGHYHORSPHQW DQG WUDQVIRUPDWLRQ WKLV DUHD ZDV VHOHFWHG EHFDXVH LW VWRRG RXW DV WKH PRVW LQ QHHG RI UHYLWDOL]DWLRQ 7KURXJK GHVLJQ RI WKLV FHQWUDO DUHD D ULSSOH DIIHFW PD\ PDQLIHVW %\ GLUHFWO\ DGGUHVVLQJ RQH RI &ROyQ V URXJKHVW QHLJKERUKRRGV DQG FKDOOHQJHV ZLWK HDVW ZHVW FRQQHFWLYLW\ WKH IROORZLQJ GHVLJQ VHHNV WR PLWLJDWH VRPH RI WKH LVVXHV FXUUHQWO\ SODJXLQJ WKH FLW\ 'HYHORSPHQW RI D GHVLJQ IRU WKLV DUHD ZLOO DOVR EHQHÀW ORFDOV DQG JXHVW E\ FRQQHFWLQJ NH\ DUHDV &RORQ &UXLVH 6KLS 7HUPLQDO DQG 3DVHR &HQWHQDULR RI WKH FLW\ WR VRPH RI &RORQ V PRUH XQGHUVHUYHG ORFDWLRQV $YHQLGD 6DQWD ,VDEHO DQG :HVW &RDVW 6TXDWWHUV 6HWWOHPHQW 6HFRQG &LW\ '(6,*1 $33/,&$7,21


1257+ 6287+ 75$16(&7 7KH QRUWK VRXWK WUDQVHFW LV WKH PRVW HYLGHQW ZLWKLQ WKH VLWH ,W WUDQVLWLRQV IURP LQGXVWULDO WR UHVLGHQWLDO LQ XQGHU PLOHV PDNLQJ WKH FHQWUDO VSLQH RI WKH VLWH WKH ORFDWLRQ IRU PDMRULW\ RI WKH SHGHVWULDQ DFWLRQ LQ WKH FLW\

($67 :(67 ',9,6,21

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

)285 &251(56

)RXU FRUQHUV LV D GLDJUDP WKDW ORRNV DW RYHUOD\LQJ WKH GLYLGHG HDVW ZHVW GLDJUDP RQ WR WKH H[LVWLQJ QRUWK VRXWK WUDQVHFW GLDJUDP SURSRVLQJ D PRUH KROLVWLF ODQG XVH SODQ ,OOXVWUDWLQJ WKDW WKURXJK LPSURYHG HDVW ZHVW FRQQHFWLYLW\ GLYHUVLÀ FDWLRQ RI ODQG XVHV FDQ WDNH SODFH DOORZLQJ DFFHVV WR PXOWLSOH DPHQLWLHV IRU UHVLGHQWV DQG JXHVW


3URYLGH JUHDWHU &211(&7,9,7< DQG DGGLWLRQDO DUHDV IRU 38%/,& (1*$*(0(17 2%-(&7,9(6

$&7,9,7,(6

(/(0(176

'HYHORS DGGHG HDVW ZHVW SHGHVWULDQ FRUULGRUV WKDW RIIHU VDIHU FRQQHFWLYLW\ WR DQG IURP FUXLVH VKLS WHUPLQDO DQG SURSRVHG DUHDV RI RSHQ VSDFH

:DONDELOLW\ &RPPHUFH &RPPXQLW\ (QJDJHPHQW &RQQHFWLYLW\ 3DVVLYH DQG $FWLYH 5HFUHDWLRQ &KLOGUHQ V 3OD\ $UHD

6RFFHU )LHOG DQG 3OD\ *URXQG 6HDWLQJ 5HVWDXUDQWV %DWKURRP &RPPXQLW\ DQG 9LVLWRUV &HQWHU 5HWDLO 7UROOH\ %XV

(QKDQFH ZHVW FRDVW DPHQLWLHV DQG DWWUDFWLRQV WR LQFHQWLYL]H HDVW ZHVW PRYHPHQW DFURVV WKH VLWH

8UEDQ %HDFK :KDUI 0DULWLPH $FWLYLWLHV 3DVVLYH DQG $FWLYH 5HFUHDWLRQ

%RDW 7RXUV %HDFK )URQW )LVKLQJ 9LOODJH )OH[LEOH 2SHQ 6SDFH .D\DNLQJ 3DGGOH %RDUGLQJ 'RFNV 5HVWDXUDQWV +RXVLQJ 6HDWLQJ %DWKURRPV 3RUW 0XVHXP 7UDGH 6FKRRO 9LHZLQJ VWDWLRQV

,QFUHDVH VDIHW\ SHUFHSWLRQ WKURXJK WKH XVH RI G\QDPLF OLJKWLQJ ZKLOH SURPRWLQJ ZDONDELOLW\ WR VWLPXODWH ORFDO HFRQRPLHV

/LJKWLQJ 0L[HG 8VH 'HYHORSPHQW 0RYHPHQW $FWLYLW\

6FXOSWXUDO /LJKWLQJ +RXVLQJ +RVWHOV 5HWDLO 3RS XS 0DUNHW 6SDFHV *URFHU\ 6WRUH 5HVWDXUDQWV &DIHV 6HDWLQJ 5RRIWRS &DIHV &OXEV

,QFRUSRUDWH *5((1 ,1)5$6758&785( LQWR VWUHHWVFDSH GHYHORSPHQW DQG QHZ LQIUDVWUXFWXUH GHVLJQ 2%-(&7,9(6

$&7,9,7,(6

(/(0(176

,QWHJUDWH VWRUPZDWHU PDQDJHPHQW LQWR QHZO\ GHYHORSHG JUHHQ FRUULGRUV WR DOOHYLDWH ÁRRGLQJ DQG VWDQGLQJ ZDWHU

*UHHQ 6WUHHWV $UWIXO 5DLQZDWHU +DUYHVWLQJ

*UHHQ :DOOV *UHHQ 5RRIV )RXQWDLQV 5DLQ :DWHU &DWFKPHQWV 3HUPHDEOH 3DYHUV

3URYLGH VWUHQJWKHQHG ZDWHUIURQW HGJH WR SURWHFW DJDLQVW ODUJH VWRUPV

6WDELOL]HG :DWHUIURQW (GJH

6HD :DOOV %RDUGZDON 7HUUDFHG :DWHUIURQW

+LJKOLJKW ELRGLYHUVLW\ ZLWKLQ WKH UHJLRQ WKURXJK WKH XVH RI ORFDO SODQW PDWHULDO DQG DHVWKHWLFV

([SUHVVLYH 3ODQW 0DWHULDO +LVWRULF 3ODQWLQJ 'HVLJQ 8WLOL]H /RFDO 0DWHULDOV

3DYHPHQW 6KDGHG 3OD]DV 3DOP 7UHH $OOHH %DPERR $OOHH 2SHQ /DZQV *DUGHQV

3URYLGH JUHDWHU &211(&7,9,7< DQG DGGLWLRQDO DUHDV IRU 38%/,& (1*$*(0(17 2%-(&7,9(6

$&7,9,7,(6

(/(0(176

8VH GHVLJQ DQG V\PEROLVP WR LQFUHDVH DZDUHQHVV RI WKH VLWH V KLVWRULF VLJQLÀFDQFH

$GDSWLYH 5HXVH 6FXOSWXUHV ,QWHUSUHWLYH 6LJQDJH

+LVWRULF 7RXUV :DONLQJ DQG %RDW ,QWHUHVWLQJ 3DYLQJ 3DWWHUV 3RUW 0XVHXP 3XEOLF $UW &RPPHPRUDWLRQ &RQWDLQHU +RXVLQJ $GDSWLYH 8VH RI ([LVWLQJ RQ 6LWH 6WUXFWXUHV

&UHDWH ÁH[LEOH DUHDV WR DFFRPPRGDWH IRU WUDGLWLRQDO ORFDO HYHQWV DQG XVHV

2SHQ 3OD]DV /DUJH 3URPHQDGHV

6WDJH 3DUDGHV 'D\ RI %ODFN (WKQLFLW\ &RQJRV

(QKDQFH H[LVWLQJ DUW PXVLF DQG FXOLQDU\ VFHQH WKURXJK WKH LQWHJUDWLRQ RI SXEOLF DUW WKHDWHUV DQG IDUPHUV PDUNHWV

$UW 'LVWULFW *DOOHULHV 7KHDWHUV 3XEOLF $UW (GXFDWLRQ 7UDQVLW

&XOLQDU\ DQG $UWV 6FKRRO 0XUDOV DQG 6FXOSWXUHV E\ /RFDO $UWLVW 9LVLWRU &HQWHU 0XVLF 3DUN 5HG 'HYLO %XV 7UDQVLW

6HFRQG &LW\ '(6,*1 $33/,&$7,21


$ EXEEOH GLDJUDP RI WKH SURJUDPPDWLF HOHPHQWV IRU WKH SURSRVHG HDVW ZHVW SHGHVWULDQ SURPHQDGH LOOXVWUDWH HDFK HOHPHQWV SRWHQWLDO VL]H LPSRUWDQFH DQG UHODWLRQVKLS WR WKH RWKHU SURJUDP HOHPHQWV *UHHQ LQIUDVWUXFWXUH ZLOO EH LQFRUSRUDWHG WKURXJK RXW WKH HQWLUH SURPHQDGH 2QH XQLTXH GHWDLO RI WKLV SDUWLFXODU IRFXV DUHD LV WKH LPSOHPHQWDWLRQ RI DQ $UW 'LVWULFW

$ ÀVKLQJ YLOODJH DQG EHDFK IURQW DUH VRPH RI WKH ELJJHU SULRULWLHV DORQJ WKH ZHVWHUQ ZDWHUIURQW 2QH RI WKH PDLQ JRDOV RI WKH ZHVWHUQ ZDWHUIURQW LV WR RIIHU LQFUHDVHG PDULWLPH DFWLYLW\ WKURXJK D PDULQD DQG GRFN FRPSOHWH ZLWK DTXDWLF DFWLYLWLHV


:HVWHUQ :DWHUIURQW LV D UHSXUSRVLQJ RI WKH H[LVWLQJ LQIRUPDO VHWWOHPHQW ORFDWHG RQ &ROyQ V ZHVWHUQ FRDVW (DFK RI WKH GHVLJQ FRQFHSWV DWWHPSWV WR SURYLGH KRXVLQJ IRU WKH H[LVWLQJ WZR KXQGUHG IDPLOLHV FXUUHQWO\ UHVLGLQJ RQ VLWH LQ WKH IRUP RI D QHZ ÀVKLQJ YLOODJH ZKLOH VLPXOWDQHRXVO\ RIIHULQJ DUHDV IRU SXEOLF HQJDJHPHQW %ULQJLQJ ERWK ORFDOV DQG JXHVW FORVHU WR WKH ZDWHU (DFK FRQFHSW XWLOL]HV WHUUDFLQJ DV D IRUP RI PLWLJDWLRQ IURP VWRUP VXUJH GHVWUXFWLRQ DV ZHOO DV D WHFKQLTXH IRU GHOLQHDWLQJ VSDFH

85%$1 %($&+

),6+(50$1·6 &29(

*5((1 %($&+

8UEDQ %HDFK ORRNV DW VXSSO\LQJ &ROyQ ZLWK LWV ÀUVW HYHU XUEDQ EHDFK DQG IRUPDO GRFN WKDW SURYLGH LQFUHDVH LQWHUDFWLRQ ZLWK WKH ZDWHU 7KH GRFN ZDV LPSOHPHQWHG DV D ZD\ WR DOVR HQKDQFH PDULWLPH DFWLYLW\ DQG DOORZ IRU ERDWV SDUNLQJ DQG SLFN XS IRU YLVLWRU WRXUV

)LVKHUPDQ V &RYH IRFXVHV SULPDULO\ RQ SURYLGLQJ WKH JUHDWHVW QXPEHU RI KRXVLQJ XQLWV DQG RSSRUWXQLWLHV (OHYDWHG IURP WKH ZDWHUV HGJH WKURXJK WKH XVH RI VHD ZDOOV WKH ÀVKLQJ YLOODJH VSDQV WKH HQWLUH FRDVW RI WKH ZDWHUIURQW DUHD 7KLV DOORZV IRU HDVH RI DFFHVV IRU ÀVKLQJ DQG WKH HOHYDWLRQ SURYLGHV SURWHFWLRQ IRU QHZ LQIUDVWUXFWXUH

7KH FHQWUDO LGHD EHKLQG *UHHQ %HDFK ZDV WR UHPDLQ WUXH WR WKH FXUUHQW FRQGLWLRQV RI WKH VLWH 7KH VLWH LV FXUUHQWO\ ODUJHO\ YHJHWDWHG ZLWK FRDVWDO JUDVVHV DQG WUHHV 7KLV VSDFH PDLQWDLQV WKDW DHVWKHWLF ZLWK WKH KRSHV RI FRQVHUYLQJ VRPH RI WKH QDWXUDO HFRORJ\ RI WKH VLWH

6HFRQG &LW\ '(6,*1 $33/,&$7,21


),1$/ &21&(376 129(1$ 3/$<$ '( /$ &$//( WK 6W %HDFK

7KH ÀQDO FRQFHSW GHVLJQ LV D FRPELQDWLRQ RI DOO SUHYLRXV FRQFHSWV ,W LQFRUSRUDWHV WKH PD[LPXP DPRXQW RI KRXVLQJ RQ VLWH DQG FUHDWHV GHVLJQDWHG EHDFK IURQW DQG GRFN 7KH WHUUDFLQJ LV HOHYDWHG IURP WKH ZDWHU V HGJH ZLWK WKH XVH RI D VHDZDOO WR RIIHU SURWHFWLRQ IURP WKH HOHPHQWV 7KH ERDUG ZDON WKDW LV RQ WKH HDVWHUQ VLGH RI WKH VLWH FRQQHFWV WR WKH GRFN YLD D SDWK WKDW H[WHQGV DURXQG WKH SHULPHWHU RI WKH HGJH RI WKH VLWH 2SHQ JUHHQ ODZQ VSDFHV WR WKH QRUWK RI WKH VLWH VXSSO\ WKH DUHD ZLWK ÁH[LEOH VSDFHV IRU SDVVLYH DQG DFWLYH UHFUHDWLRQ LQ IURQW D UHSXUSRVHG EXLOGLQJ 7KH EXLOGLQJ WKDW FXUUHQWO\ H[LVW RQ VLWH KRVW D VPDOO QXPEHU RI ERDWV DQG PLQLPDO PDULWLPH DFWLYLW\ 7KH LGHD IRU WKLV VSDFHV LV WR WUDQVIRUP WKLV EXLOGLQJ LQ WR D PXVHXP VKRZ FDVLQJ WKH KLVWRU\ RI WKH SRUW RI &ROyQ DV ZHOO DV D PDUNHW SODFH YHQXH RQ VLWH

7232 &,5&8/$7,21 /$:1 23(1 63$&( %2$5' :$/. /281*( %2$5' :$/. '2&. ),6+,1* 9,//$*(


7KH SULPDU\ GHVLJQ IRU WKH VLWH LV D QHZ SHGHVWULDQ SURPHQDGH WKDW ZLOO WUDQVSRUW JXHVW IURP WKH FUXLVH VKLS WHUPLQDO RQ &ROyQ V HDVWHUQ FRDVW WR WKH ZHVWHUQ ZDWHUIURQW 7KLV QHZ SURPHQDGH ZLOO DWWHPSW WR SURYLGH JUHDWHU HDVW ZHVW FRQQHFWLYLW\ WKURXJK WKH FLW\ UHYLYLQJ VRPH RI &ROyQ V PRUH WURXEOHG QHLJKERUKRRGV DORQJ WKH ZD\ *UHDWHU IRRW WUDIÀF HDVW DQG ZHVW WKURXJKRXW WKH VLWH ZLOO KRSHIXOO\ LQFUHDVH ORFDO FRQQHFWLRQV ZKLOH DOVR DOORZLQJ IRU VDIHU PRYHPHQW WKURXJK WKH VLWH IRU WRXULVW 7KLV ZLOO DOORZ WRXULVW WR EULQJ PXFK QHHGHG VSHQGLQJ LQWR WKH FLW\ DV LW LV FXUUHQWO\ LVRODWHG WR WKH FUXLVH VKLS WHUPLQDO

63$&( $&7,9$7(

(DFK RI WKH IROORZLQJ FRQFHSWV ZHUH GHYHORSHG WR GHWHUPLQH WKH EHVW SRVVLEOH URXWH IRU WKH SHGHVWULDQ SURPHQDGH 6SDFH DFWLYDWH ORRNV DW XWLOL]LQJ RQH PDLQ URDG &DOOH DQG FRQQHFWLQJ WR DQ H[LVWLQJ OLQHDU SDUN RQ VLWH 5HPRYLQJ YHKLFXODU DFFHVV LQ WKLV SRUWLRQ RI WKH VLWH DQG DOORZLQJ IRU KRXVLQJ WR EH VXUURXQGHG E\ RSHQ VSDFH 6RPH PL[HG XVH GHYHORSPHQW ZRXOG EH LPSOHPHQWHG WR WKH VRXWK WR DFFRPPRGDWH QHZ EXVLQHVVHV

6HFRQG &LW\ '(6,*1 $33/,&$7,21

7,0(6 7:2

7LPHV 7ZR XWLOL]H VWUHHWV &DOOH DQG DV SHGHVWULDQ FRUULGRUV 7KLV ZRXOG JUDQW FOHDU DFFHVV WR WKH FUXLVH VKLS WHUPLQDO YLD &DOOH DQG WKH H[LVWLQJ OLQHDU SDUN YLD &DOOH SURYLGLQJ D YDULHW\ RI PRYHPHQW RSWLRQV IRU JXHVW DQG ORFDOV 7KLV FRQFHSW PDLQWDLQV YHKLFXODU DFFHVV LQWR WKH QHZO\ LPSOHPHQWHG PL[HG XVH GHYHORSPHQW YLD &DOOH EXW OLPLWV YHKLFXODU WUDIÀF WR D GHDG HQG URXQG DERXW


),1$/ &21&(376 3$6(2 &$//( 129(1$ WK 6W 3URPHQDGH

7R 7KH 3RLQW ZDV GHVLJQHG WR FUHDWH HDVH RI DFFHVV IRU SHGHVWULDQV DFURVV WKH VLWH WKURXJK WKH GHYHORSPHQW RI D VLQJXODU HDVW ZHVW FRUULGRU &DOOH ZLOO EH WUDQVIRUPHG LQWR D VLQJOH SHGHVWULDQ SURPHQDGH WKDW LQFRUSRUDWHV PDMRULW\ PL[HG XVH KRXVLQJ GHYHORSPHQW &DOOH FHQWUDOO\ GLVVHFWV RQH RI &ROyQ V URXJKHVW QHLJKERUKRRGV GLUHFWO\ DGGUHVVLQJ WKH QHFHVVDU\ UHYLWDOL]DWLRQ RI WKLV WURXEOHG QHLJKERUKRRG 7KLV SHGHVWULDQ WKRURXJKIDUH ZLOO SURYLGH D VDIHU FRQQHFWLRQ IRU ERWK ORFDOV DQG JXHVW HDVW ZHVW WKURXJKRXW WKH VLWH 7KLV ZLOO RIIHU D IHZ QHZ SODFHV IRU SXEOLF HQJDJHPHQW DQG LPSURYHG KRXVLQJ FRQGLWLRQV LQ WKH FLW\ 7KHUH LV QR ORQJHU HDVW ZHVW YHKLFXODU WUDIÀF RQ WKLV VWUHHW 7KH SURPHQDGH LV DFFHVVLEOH E\ ELNHV DQG SHGHVWULDQ IRRW WUDIÀF RQO\ 1RUWK VRXWK YHKLFXODU DFFHVV ZLOO EH PDLQWDLQHG


7KH PLGGOH SRUWLRQ RI WKH SURPHQDGH FRQWDLQV D QXPEHU RI VLJQLÀ FDQW EXLOGLQJV LQFOXGLQJ D ODUJH VHFRQGDU\ VFKRRO DQG KLVWRULF FKXUFK 0XFK RI WKH LQIUDVWUXFWXUH LQ WKLV DUHD ZDV VROLG EXW WKHUH LV DQ DEXQGDQFH RI YDFDQW ODQG DQG D ODFN RI JUHHQ VSDFHV ,Q WKLV ORFDWLRQ WKH GHVLJQ DWWHPSWV WR UHVSRQG WR WKH ODFN RI JUHHQ VSDFH WKURXJK WKH FUHDWLRQ RI PRUH QDWXUDO FRPPXQLW\ RSHQ VSDFHV GHYHORSHG IURP YDFDQW ODQG

C

6HFRQG &LW\ '(6,*1 $33/,&$7,21

7KH DUHD RI WKH SURPHQDGH VHOHFWHG WR UHSUHVHQW &RORQ KDV EHHQ WUDQVIRUPHG LQWR DQ $UWV 'LVWULFW &RORQ KDV D YHU\ VLJQLÀ FDQW DUWLVW SRSXODWLRQ 0DQ\ RI WKH EXLOGLQJV KHUH DUH YDFDQW ZDUHKRXVHV WKDW ZLOO EH WUDQVIRUPHG WKURXJK DGDSWLYH UH XVH LQWR PL[HG XVH VSDFHV 7KLV SDUWLFXODU VHFWLRQ ZLOO DOVR EH OLQHG ZLWK DQ DOOHH RI &RFRQXW 3DOPV 7KLV LV D VLJQLÀ FDQW VSHFLHV ORFDWHG WKURXJKRXW &RORQ


7KH HDVWHUQ SRUWLRQ RI WKH SURPHQDGH LV SULPDULO\ UHVLGHQWLDO 0DQ\ RI WKH EXLOGLQJV LQ WKLV DUHD ZHUH LQ GHVSHUDWH QHHG RI UHYLWDOL]DWLRQ 1HZ EXLOW IRUP VLPLODU WR EXLOGLQJ W\SRORJLHV DOUHDG\ H[LVWLQJ LQ WKH FLW\ ZHUH LPSOHPHQWHG DQG UHVSRQG WR WKH QHZ SHGHVWULDQ FRUULGRU 7KLV DUHD LV KLJK GHQVLW\ UHVLGHQWLDO DQG UHÁ HFWV WKH JURZWK RI 3DQDPD &LW\

3$6(2 &$//( 129(1$ LV D SHGHVWULDQ SURPHQDGH WKDW LQFOXGHV VRPH ELNH WUDQVSRUWDWLRQ 9HKLFXODU WUDIÀ F ZDV FRPSOHWHO\ HOLPLQDWHG DORQJ WKH SURPHQDGH DQG WKH VWUHHW ZDV GLYLGHG LQWR WKUHH VHFWLRQV HDFK ZLWK LW V RZQ XQLTXH FKDUDFWHU ,Q RUGHU WR DFFRPPRGDWH IRU ODUJHU VLGH ZDONV D ELNH SDWK Á H[LEOH VSDFH DQG JUHHQ VSDFH WKH FRUULGRU ZDV ZLGHQHG LQ VSHFLÀ F ORFDWLRQV %DVHG RQ LQIUDVWUXFWXUH TXDOLW\ DQG EXLOGLQJ XVH WKH GHVLJQ ZDV DEOH WR ZLGHQ WKH SURPHQDGH LQ WKUHH ORFDWLRQV DQG QDUURZ WKH SURPHQDGH LQ RWKHUV 7KH À QDO GHVLJQ IRU WKH HDVW ZHVW SURPHQDGH DWWHPSWV WR GUDZ FRQQHFWLRQ WR WKH 3DQDPD &DQDO DQG WKH WKUHH PDMRU FLWLHV WKDW UHVLGH LQ WKH &DQDO %DVLQ (DFK RI WKH VHFWLRQV DORQJ WKH SURPHQDGH GUDZV LQVSLUDWLRQ IURP RQH RI WKH &DQDO %DVLQ FLWLHV 7KLV ZLOO DOORZ JXHVW DQG ORFDOV WR PDNH YLVXDO FRQQHFWLRQV WR WKH KLVWRU\ RI WKH 3DQDPD &DQDO DQG &RORQ V VLJQLÀ FDQW UROH LQ LWV FUHDWLRQ &RORQ *DPERD DQG 3DQDPD &LW\ DUH DOO FULWLFDO ORFDWLRQV DORQJ WKH FDQDO %RWK &RORQ DQG *DPERD KRXVHG PDMRULW\ RI WKH FDQDO FRQVWUXFWLRQ ZRUNHUV GXULQJ WKH FDQDOV FUHDWLRQ *DPERD LV DOVR WKH ORFDWLRQ RI WKH *DWXQ /DNH 5DLQIRUHVW VWL OO FRPSULVH WKH PDMRULW\ RI WKH ODQGVFDSH LQ *DPERD &RORQ DQG 3DQDPD &LW\ DUH WKH WHUPLQDO HQWUDQFHV WR WKH 3DQDPD &DQDO DQG DUH WKHUHIRUH PXFK PRUH GHYHORSHG ZLWK ORWV RI WUDGH DQG LQGXVWU\ 7KH ORFDWLRQV DORQJ WKH SURPHQDGH DWWHPSW WR UHÁ HFWV WKHVH SDUWLFXODU WUDLWV RI WKH FLWLHV ZLWKLQ WKH &DQDO %DVLQ


1 2 3

5 4

8 7

6

10 9

13

11

14 12

7KH À QDO PDVWHU SODQ LQFOXGHV WKH LPSOHPHQWHG SHGHVWULDQ SURPHQDGH 3$6(2 &$//( 129(1$ DQG ZHVW FRDVW ZDWHUIURQW 129(1$ 3/$<$ '( /$ &$//( DOORZLQJ IRU LQFUHDVHG FRQQHFWLYLW\ VDIHW\ DQG ZDONDELOLW\ WKURXJK WKH FHQWHU RI WKH FLW\ 7KH ZHVWHUQ ZDWHUIURQW DQG H[LVWLQJ FUXLVH VKLS WHUPLQDO SURYLGH DQFKRULQJ DPHQLWLHV RQ HLWKHU HQG RI WKH FRUULGRU SURPRWLQJ PRYHPHQW HDVW ZHVW 7KH SURPHQDGH GLVVHFWV D ODUJH ´FRQMXQWRµ RU KRXVLQJ SURMHFW FXUUHQWO\ SODJXHG ZLWK FULPH DQG GHJUDGHG LQIUDVWUXFWXUH ,PSURYHG KRXVLQJ DQG RXWGRRU VSDFH IRU H[LVWLQJ UHVLGHQWV KDV EHHQ SURYLGHG DORQJ ZLWK DQ DUWV GLVWULFW RXWGRRU JDOOHU\ VSODVK SDG JDUGHQV DQG RWKHU Á H[LEOH VSDFHV

6HFRQG &LW\ '(6,*1 $33/,&$7,21


3RUW 0XVHXP 0DUNHW 'RFN )LVKLQJ 9LOODJH :DWHUIURQW 1RYHQD 3OD\D GH OD &DOOH -DFDUDQGD %XOHYDU 0L[HG 8VH $YHQLGD 3DOPD 6SODVK 3DG $UWV 'LVWULFW *DOOHU\ DQG /RIW 6SDFHV 2XWGRRU ([KLELWLRQ *DOOHU\

0DLQWDLQHG %XLOGLQJ 8VH %XOHYDU &HQWUDO 3UHVHUYHG ([LVWLQJ /DQGPDUN &KXUFK (QKDQFHG *UHHQ 6SDFH DQG &DIH $UHDV 6HFRQGDU\ 6FKRRO 5HQRYDWHG %XLOGLQJ )RUP *UHHQ 5RRIV 6LQJOH )DPLO\ 5HVLGHQWLDO &ROyQ &UXLVH 6KLS 7HUPLQDO

16

17

15

18

0


6HFRQG &LW\ '(6,*1 $33/,&$7,21


0

3$6(2 &$//( 129(1$ $9(1,'$ 3$/0$ -$&$5$1'$ %8/(9$5 129(1$ 3/$<$ '( /$ &$//(


3$6(2 &$//( 129(1$ +HDGLQJ ZHVW DORQJ &RORQ V QHZ SHGHVWULDQ SURPHQDGH GHQVH WUHH FDQRS\ DQG LQWULFDWH JURXQG PDWHULDO DUH H[SHULHQFHG LQ WKH FHQ WUDO SRUWLRQ RI WKH SURPHQDGH 7KH VSDFH KDV EHHQ ZLGHQHG WR DFFRPPRGDWHG IRU D QXPEHU RI DFWLYLWLHV )DUPHUV PDUNHWV ODUJH JURXSV RI WUDYHOHUV ELNHUV DQG UHVLGHQWV FDQ DOO PRYH WKURXJK WKLV VSDFH ZLWK HDVH ZLWKRXW WKH LQWHU IHUHQFH RI YHKLFXODU WUDIÀF

6HFRQG &LW\ '(6,*1 $33/,&$7,21



$ GHWDLO LOOXVWUDWLRQ VKRZFDVH D OXVKO\ YHJHWDWHG SRUWLRQ RI WKH SURPHQDGH ² UHÁHFWLYH RI WKH GHQVH YHJHWDWLRQ IRXQG LQ WKH FLW\ RI *DPERD 7KLV SDUWLFXODU DUHD RI WKH VLWH ZDV GHVLJQHG DV D UHVSLWH DW WKH FHQWHU RI WKH FRUULGRU &XUYLOLQHDU YHJHWDWLYH VSDFHV ZHUH FUHDWHG DV SRWHQWLDO ZDWHU FROOHFWLRQ EDVLQV WR LUULJDWH SODQW PDWHULDO DQG NHHS PLQLPDO DPRXQWV RI SHUHQQLDO ÁRRGLQJ XQGHU FRQWURO 7KH JURXQG PDWHULDO D FRPELQDWLRQ RI EDPERR GHFNLQJ DQG SHUIRUDWHG PHWDO ZHUH GHVLJQHG WR FUHDWH D GLVWLQFWLRQ EHWZHHQ WKLV SRUWLRQ RI WKH SURPHQDGH DQG VKRZFDVH WKH XVH RI ORFDO PDWHULDO

6HFRQG &LW\ '(6,*1 $33/,&$7,21


P


$9(1,'$ 3$/0$ 7KH SHUVSHFWLYH KLJKOLJKWV DQ RXWGRRU DUW H[KLELWLRQ DUHD WKDW ZLOO VKRZ FDVH WKH DUW ZRUN RI ORFDO &RORQLWHV 7KLV SRUWLRQ RI WKH SURPHQDGH DOVR UHVSRQGV WR WKH H[LVWLQJ DQG KLVWRULF VLWH DHVWKHWLF WKURXJK WKH XVH RI VLJQLÀ FDQW ORFDO YHJHWDWLRQ FRFRQXW SDOP WUHHV ,QWHUFKDQJHDEOH VHPL SHUPHDEOH JDOOHU\ GLVSOD\V ZHUH FUHDWHG WR VKRZ FDVH WKH DUW DQG XWLOL]H WKH LURQ DQG UXVWHG PHWDO IRXQG LQ WKH ORFDO IRUWV VXUURXQGLQJ &ROyQ )LQDOO\ WKH JURXQG SDYLQJ SOD\V WR WKH ORFDO FKDUP DQG YLEUDQF\ RI &ROyQ ZKLOH V\PEROLFDOO\ KLQWLQJ DW WKH ZDWHUIURQW DKHDG

6HFRQG &LW\ '(6,*1 $33/,&$7,21



$ GHWDLO LOOXVWUDWLRQ RI $YHQLGD 3DOPD LV VKRZQ KHUH 7KLV SURPHQDGH ZDV H[SOLFLWO\ GHVLJQHG DV D UHÁ HFWLRQ RI &ROyQ /LQHG ZLWK FRFRQXW SDOPV WKH JHRPHWULF VSDWLDO OD\RXW SURYLGHV DUHDV IRU SDVVLYH UHFUHDWLRQ 6SULQNOHG WKURXJKRXW WKH WULDQJXODU JUDVV DUHDV DUH DUW SDQHOV PDGH RI UXVWHG PHWDO DQG JODVV FRYHULQJV WR SURWHFW WKH DUW IURP WKH HOHPHQWV 6TXDUH FRQFUHWH EORFNV DUH DOVR VHW ZLWKLQ WKH JUDVV RSHQV VSDFHV IXQFWLRQLQJ DV ERWK VHDWLQJ DQG SHGHVWDOV IRU VFXOSWXUH ZRUN 7KH PDLQWDLQHG QRUWK VRXWK WUDIÀ F SDWWHUQV DUH GHSLFWHG KHUH WR LOOXVWUDWH KRZ WKH SURPHQDGH FRQWLQXHV WR IXQFWLRQ HYHQ ZLWK VRPH YHKLFXODU PRYHPHQW DFURVV WKH VLWH *UHHQ URRIV DUH IHDWXUHG RQ VRPH RI WKH EXLOGLQJV LQ WKH VRXWKHUQ SRUWLRQ RI WKH VLWH

6HFRQG &LW\ '(6,*1 $33/,&$7,21


P


7KH ZHVWHUQ ZDWHUIURQW D IRUPHU VTXDWWHUV YLOODJH KDV EHHQ WUDQVIRUPHG LQWR 1RYHQD 3OD\D GH OD &DOOH WK 6WUHHW %HDFK 7KH À QDO GHVLJQ SURYLGHV KRXVLQJ IRU WKH IRUPHU UHVLGHQWV LQ WKH IRUP RI D QHZ À VKLQJ YLOODJH 8WLOL]LQJ WKH VSDFHV XQLTXH ORFDWLRQ DQG DFFHVV WR PDULWLPH LQGXVWU\ WKH GHVLJQ KRSHV WR RIIHU KRXVLQJ DQG MRE RSSRUWXQLWLHV IRU H[LVWLQJ UHVLGHQWV 7KH QHZ ZDWHUIURQW DUHD KDV DOVR LPSOHPHQWHG RSHQ VSDFH DORQJ WKH UDLVHG ZDWHUIURQW HGJH DQG D SHGHVWULDQ ERDUG ZDON ORFDWHG DORQJ WKH SHULPHWHU RI WKH VLWH 7KH VLWH PDLQWDLQHG DQ H[LVWLQJ EXLOGLQJ WKDW ZDV SUHYLRXVO\ XQGHUXWLOL]HG DQG UHSXUSRVHG LW LQWR D QHZ 3RUW RI &ROyQ PXVHXP DQG À VKHUPDQ V PDUNHW SODFH )OH[LEOH JUDVV FRYHUHG RSHQ VSDFHV DOORZ IRU ODUJHU HYHQWV DQG IHVWLYDOV )RFXV DUHDV KDYH EHHQ QRWHG RQ WKH IROORZLQJ PDS LOOXVWUDWLRQ

6HFRQG &LW\ '(6,*1 $33/,&$7,21


0


-$&$5$1'$ %8/(9$5 -DFDUDQGD %XOHYDU LV WKH HQG RI WKH 3DVHR 1RYHQD &DOOH /LQHG ZLWK ODUJH MDFDUDQGD WUHHV WKLV SHGHVWULDQ ERDUG ZDON UXQV SDUDOOHO WR D PDLQWDLQHG YHKLFXODU WKRURXJKIDUH 7KLV SURYLGHV D VHSDUDWLRQ EHWZHHQ WKH RSHQ VSDFH DQG KRXVLQJ ORFDWHG RQ WKH ZDWHUIURQW 7KH ERDUG ZDON DOORZV IRU FRQWLQXHG SHGHVWULDQ ZDONDELOLW\ GHVSLWH WKH SUHVHQFH RI YHKLFOHV QHDU E\ 9LHZV WR WKH ÀVKLQJ YLOODJH DQG SRUW PXVHXP DUH DOVR DYDLODEOH KHUH 7KLV LV ZKHUH WKH XUEDQ FLW\ VWUXFWXUH PHHWV PDULWLPH DFWLYLW\

6HFRQG &LW\ '(6,*1 $33/,&$7,21



6HFRQG &LW\ '(6,*1 $33/,&$7,21


+LVWRULF SKRWRJUDSK IURP WKH V RI WKH ZDWHUIURQW LQ &ROyQ


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

6HFRQG &LW\ '(6,*1 $33/,&$7,21



7KH WZR KLJKOLJKWHG VSHFLHV LQ WKLV VHFWLRQ ZLOO EH XVHG WKURXJKRXW WKH IROORZLQJ GHVLJQ DQG IXQFWLRQ DV LFRQLF HOHPHQWV ZLWKLQ WKH ODQGVFDSH

&2&26 18&,)(5$

6HFRQG &LW\ '(6,*1 $33/,&$7,21

)RXQG WKURXJKRXW WKH WURSLFV DQG VXE WURSLFV &RFRQXW 3DOPV DUH DQ LFRQLF IRUP LQ WKH 3DQDPDQLDQ ODQGVFDSH &ROyQ LV VSHFLÀFDOO\ DQG KLVWRULFDOO\ NQRZQ IRU LW V DEXQGDQFH RI FRFRQXW SDOPV 7KH GHVLJQ XWLOL]HV FRFRQXW SDOPV DORQJ WKH EHDFK IURQW DQG SURPHQDGH DV D ZD\ WR FRQQHFW WKH QHZ GHVLJQ DHVWKHWLF WR WKH KLVWRULF &UHDWLQJ YLVXDO FXHV WR WKH SDVW +DUYHVWLQJ WKH IUXLW RI WKH FRFRQXW SDOPV FDQ DOVR FRQWULEXWH HFRQRPLFDOO\


-$&$5$1'$ 0,026,)2/,$ 7KH -DFDUDQGD LV D VXE WURSLFDO WUHH QDWLYH WR &HQWUDO DQG 6RXWK $PHULFD $OWKRXJK QRW D QDWLYH VSHFLHV VSHFLÀFDOO\ WR 3DQDPD -DFDUDQGDV VHUYH DV EHDXWLIXOO\ YLEUDQW VWUHHW WUHHV WKURXJKRXW WKH FRXQWU\ SURYLGLQJ DPSOH VKDGH 7KLV VSHFLHV GRHV ZHOO LQ 3DQDPD DQG LV XWLOL]HG LQ VRPH RI WKH SUHYLRXV GHVLJQV DV D ZD\ WR DFFHQWXDWH WKH SXEOLF VSDFHV 7KH -DFDUDQGD ZDV SODQWHG WR DGG D VSODVK RI FRORU WR WKH YHU\ OXVK DQG JUHHQ SODQW SDOHWWH LQ 3DQDPD



/,0,7$7,216 )8785( &216,'(5$7,216

$OEHUW (LQVWHLQ DQG KLV ZLIH LQ &ROyQ ZLWK FLW\ RIÀFLDOV


+ROLVWLF DQG LQFOXVLYH GHVLJQ DUH DW WKH KHDUW RI WKLV SURMHFW 7KURXJK FXOWXUDO HFRQRPLF DQG HQYLURQPHQWDO FRQVLGHUDWLRQV WKH GHVLJQ KLJKOLJKWV VLJQLÀFDQW KLVWRULF EXLOGLQJV DQG ODQGVFDSHV LQ QHHG RI UHYLWDOL]DWLRQ WUDQVIRUPLQJ WKHP LQWR QHZ DPHQLWLHV IRU UHVLGHQWV DQG JXHVW 7KH EURDG VWURNHV RI GHVLJQ DSSOLHG LQ WKLV SURMHFW ZLOO KRSHIXOO\ LQVSLUH GHHSHU H[SORUDWLRQ RI &ROyQ XOWLPDWHO\ VXSSRUWLQJ HIIRUWV WR LPSURYH WKH FLW\ DQG PRUH LPSRUWDQWO\ WKH OLYHV RI WKH SHRSOH ZKR FDOO LW KRPH &ROyQ KDV D ULFK KLVWRU\ DQG ZHDOWK RI FXOWXUH WKDW QHHGV DQG GHVHUYHV SURWHFWLRQ 7KH GHVLJQ LQWHUYHQWLRQV VXJJHVWHG LQ WKLV SURMHFW RQO\ MXVW EHJLQ WR VFUDWFK WKH VXUIDFH RI ZKDW FRXOG EH GRQH LQ &ROyQ 0XFK GHHSHU DQDO\VLV RI HFRQRPLF DQG HQYLURQPHQWDO IDFWRUV LV QHFHVVDU\ WR WUXO\ EHJLQ WR DIIHFW FKDQJH LQ WKH FLW\

/,0,7$7,216 7KH UHVHDUFK DQG VLWH DQDO\VLV ZHUH H[WUHPHO\ UHVWULFWHG WKURXJKRXW WKLV SURFHVV DV WKHUH LV FXUUHQWO\ PLQLPDO *,6 GDWD RU HQYLURQPHQWDO VWXGLHV FROOHFWHG LQ WKLV VSHFLÀF UHJLRQV RI &ROyQ *UHDWHU NQRZOHGJH RI H[LVWLQJ XQHPSOR\PHQW UDWHV KRXVLQJ FRVW DQG RWKHU HFRQRPLF IDFWRUV ZHUH GLIÀFXOW WR DFTXLUH DV LW ZDV QRW UHDGLO\ DYDLODEOH YLD WKH &RQWURODULD *HQHUDO GH OD 5HSXOLFD GH 3DQDPD RU WKURXJK ZHE VHDUFK 0XFK RI WKH UHVHDUFK DQG DQDO\VLV ZDV FRPSLOHG IURP PRUH JHQHUDO LQIRUPDWLRQ IRXQG VXUURXQGLQJ &ROyQ DQG REVHUYDWLRQV FROOHFWHG GXULQJ UHVLGHQF\ LQ WKH FLW\

)8785( &216,'(5$7,216 )RU WKLV SURMHFW WR EH HYHQ PRUH DIIHFWLYH LW LV HVVHQWLDO WR VSHQG PRUH H[WHQGHG SHULRGV RI WLPH ZLWK WKH FRPPXQLWLHV OLYLQJ LQ &ROyQ *UHDWHU FRQQHFWLRQ DQG FRPPXQLFDWLRQ ZLWK &RORQLWHV ZRXOG DGG DQRWKHU OD\HU RI LQVLJKW LQWR WKH ZDQWV DQG QHHGV RI WKH FLW\ ,Q GHSWK HQYLURQPHQWDO DQDO\VLV RI FXUUHQW ÁRRG FRQGLWLRQV YHJHWDWLRQ FRDVWOLQH LQWHJULW\ ZDWHU KDUYHVWLQJ SRWHQWLDO DQG XUEDQ ZLOGOLIH ZRXOG KDYH DOVR EHHQ EHQHÀFLDO WR WKLV SURMHFW 7KH SRVVLELOLWLHV WKDW H[LVW IRU WKH FLW\ RI &ROyQ JR IDU EH\RQG WKH VFRSH RI D PDVWHU·V UHSRUW +RZHYHU WKURXJK WKLV XQGHUWDNLQJ LW KDV EHHQ PDGH FOHDU WKDW ODQGVFDSH DUFKLWHFWXUH WKURXJK VHHPLQJO\ VPDOO JHVWXUHV FDQ FUHDWH DQG LQVSLUH JUHDW DPRXQWV RI FKDQJH WR KHOS OHYHO WKH SOD\LQJ ÀHOG LQ &ROyQ




:25.6 &,7(' ,0$*(6


,1752'8&7,21 /,7(5$785( 5(9,(: 6,7( $1$/<6,6 $QWURS 0DUF 6XVWDLQDEOH /DQGVFDSHV &RQWUDGLFWLRQ )LFWLRQ 2U 8WRSLD" /DQGVFDSH $QG 8UEDQ 3ODQQLQJ GRL M ODQGXUESODQ $QWURS 0DUF :K\ /DQGVFDSHV 2I 7KH 3DVW $UH ,PSRUWDQW )RU 7KH )XWXUH /DQGVFDSH $QG 8UEDQ 3ODQQLQJ GRL M ODQGXUESODQ $UFKLEROG 5DQGDO $ 2QFH 9LEUDQW &LW\ 6WUXJJOHV $V 3DQDPD 5DFHV $KHDG 2Q $ :DYH 2I 3URVSHULW\ 7KH 1HZ <RUN 7LPHV KWWS ZZZ Q\WLPHV FRP ZRUOG DPHULFDV IUXVWUDWLRQV LQ FRORQ SDQDPD DV HFR QRPLF JURZWK VNLUWV E\ KWPO"BU $YHQGDxR 5RODQGR /DWLQ $PHULFDQ (FRQRPLF 2XWORRN 3DULV 2(&' 3XE %%& 1HZV 3DQDPD 3URÀOH 7LPHOLQH %%& 1HZV KWWS ZZZ EEF FRP QHZV ZRUOG ODWLQ DPHUL FD %HQHGLFW 0DUN $ DQG (GZDUG 0F0DKRQ *UHHQ ,QIUDVWUXFWXUH :DVKLQJWRQ '& ,VODQG 3UHVV &RDWHV $QWKRQ\ * /DXUHO 6 &ROOLQV 0DULH 3LHUUH $XEU\ DQG :LOOLDP $ %HUJJUHQ 7KH *HRORJ\ 2I 7KH 'DULHQ 3DQDPD $QG 7KH /DWH 0LRFHQH 3OLRFHQH &ROOLVLRQ 2I 7KH 3DQDPD $UF :LWK 1RUWKZHVWHUQ 6RXWK $PHUL FD *HRORJLFDO 6RFLHW\ 2I $PHULFD %XOOHWLQ GRL E &RORQ &LW\ ,PDJH KWWS FRPPRQV ZLNLPHGLD RUJ ZLNL )LOH $QWLJXRB(GLÀ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~xH] 'H %DOERD ([SORUDWLRQ +,6725< &RP KWWS ZZZ KLVWRU\ FRP WRSLFV H[SORUDWLRQ YDVFR QXQH] GH EDOERD -RQHV 0LFKDHO 7KH &RQFHSW 2I &XOWXUDO /DQGVFDSH 'LVFRXUVH $QG 1DUUDWLYHV /DQGVFDSH 6HULHV GRL B


/LOO\ DQG $VVRFLDWHV 3DQDPD V &RORQ )UHH =RQH &KDOOHQJHV $QG 2SSRUWXQLWLHV 2I $ /RJLVWLFV +XE KWWS ZZZ VKLSOLOO\ FRP UDWHV 3DQDPD&)=/RJLVWLFV+XE SGI 0HDGRZV 'RQHOOD + 'HQQLV / 0HDGRZV DQG -ยก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ร HGX FG 7FOI RUJ :KDW $UH &XOWXUDO /DQGVFDSHV" _ 7KH &XOWXUDO /DQGVFDSH )RXQGDWLRQ KWWS WFOI RUJ ODQGVFDSHV ZKDW DUH FXOWXUDO ODQGVFDSHV

7KH &LW\ RI 1HZ <RUN 8UEDQ :DWHUIURQW $GDSWLYH 6WUDWHJLHV 1HZ <RUN 'HSDUWPHQW RI &LW\ 3ODQQLQJ KWWS ZZZ Q\F JRY KWPO GFS KWPO VXVWDLQDEOHBFRPPXQLWLHV VXVWDLQBFRP VKWPO 7KH 8QLYHUVLW\ RI 7H[DV DW 6DQ $QWRQLR :HE DQG 0XOWLPHGLD 6HUYLFHV &RQFHSW _ &HQWHU )RU &XOWXUDO 6XVWDLQDELOLW\ _ 876$ _ 7KH 8QLYHUVLW\ 2I 7H[DV $W 6DQ $QWRQLR &FV 8WVD (GX KWWS FFV XWVD HGX DERXW FRQ FHSW KWPO


7XUQHU 7RP &LW\ $V /DQGVFDSH $ 3RVW 3RVWPRGHUQ 9LHZ 2I 'HVLJQ $QG 3ODQQLQJ /RQGUHV ,QJODWHUUD 7D\ORU )UDQFLV 7]RXODV .RQVWDQWLQRV .DOHYL .RUSHOD 6WHSKHQ 9HQQ 9HVD <OL 3HONRQHQ $OHNVDQGUD .Dŭ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² (FRORJLFDO 6\VWHPV (FRORJ\ $QG 6RFLHW\ :LGJUHQ 0DWV &DQ /DQGVFDSHV %H 5HDG" (XURSHDQ 5XUDO /DQGVFDSHV 3HUVLVWHQFH $QG &KDQJH ,Q $ *OR EDOLVLQJ (QYLURQPHQW GRL B :LNLSHGLD $IUR 3DQDPDQDLDQ KWWS HQ ZLNLSHGLD RUJ ZLNL $IUR 3DQDPDQLDQ :LNLSHGLD &ROyQ 3DQDPD KWWS HQ ZLNLSHGLD RUJ ZLNL &RO & % Q B3DQDPD :LNLSHGLD 0ROD $UW )RUP

KWWS HQ ZLNLSHGLD RUJ ZLNL 0RODB DUWBIRUP :PI RUJ +,6725,& &(17(5 2) &2/Ð1 _ :RUOG 0RQXPHQWV )XQG KWWS ZZZ ZPI RUJ SURMHFW KLVWRULF FHQWHU FRO & % Q


&$6( 5(9,(: &217(17 ,0$*(6 $UFK'DLO\ 6XSHUNLOHQ 7RSRWHN %,* 6XSHUÁH[ KWWS ZZZ DUFKGDLO\ FRP VXSHUNLOHQ WRSR WHN ELJ DUFKLWHFWV VXSHUÁH[ $VOD RUJ $6/$ 3URIHVVLRQDO $ZDUGV _ /DÀWWH *UHHQZD\ 5HYLWDOL]DWLRQ &RUULGRU _ /LQNLQJ 1HZ 2UOHDQV 1HLJKERUKRRGV KWWS ZZZ DVOD RUJ DZDUGV KWPO $VOD RUJ $6/$ 3URIHVVLRQDO $ZDUGV _ &DQDGDk½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k½ 6 3RWDWR 3DUN 2XU :RUOG KWWS RXUZRUOG XQX HGX HQ WKH WKULYLQJ ELRGLYHUVLW\ RI SHUX SRWDWR SDUN :LNLSHGLD /D 5DPEOD %DUFHORQD KWWS HQ ZLNLSHGLD RUJ ZLNL /DB5DPEOD B%DUFHORQD


,0$*(6 $OO SKRWRV QRW FLWHG LQ WKH IROORZLQJ ZRUNV FLWHG VHFWLRQ ZHUH RWKHUZLVH WDNHQ E\ WKH DXWKRU .HQGUD +\VRQ &RYHU 3DJH $QWLJXR (GLÀFLR 'H /D *REHUQDFLyQ 'H &ROyQ 3DQDPD ,PDJH KWWS FRPPRQV ZLNLPHGLD RUJ ZLNL )LOH $QWLJXRB(GLÀFLRBGHBODB*REHUQDFL & % QBGHB&RO & % QB3DQDPD -3* &RQFOXVLRQ (LQVWHLQ (Q 3DQDPD ,PDJH KWWS FDFKH DVVHW FDFKH QHW JF SK\VLFLVW DOEHUW HLQ VWHLQ DQG KLV ZLIH HOVD JHWW\LPDJHV MSJ"Y F ,:6$VVHW N G *N== EI ]/ =LLM8P[D 4EP % 0N 2% , - YT[RVE<G%T=& )0*Z Y'.PM. FFI[O )UHQFK &RWWDJHV ,PDJH KWWSV XISFPFROOHFWLRQ ZRUGSUHVV FRP .H\ 6SHFLHV &RFRQXW ,PDJH KWWSV JRRGQHZVDGD\ ÀOHV ZRUGSUHVV FRP FRFRV QXFLIHURV MSJ .H\ 6SHFLHV -DFDUDQGD ,PDJH KWWS WH[DVWUHHLG WDPX HGX LPDJHV 7UHH,PDJHV MDFDUDQGD MSJ 3DJH %DFKHORU 4XDUWHUV &DQDO =RQH ,PDJH KWWSV XISFPFROOHFWLRQ ZRUGSUHVV FRP 3DJH &RORQ %HWZHHQ $QG ,PDJH KWWS HQ ZLNLSHGLD RUJ ZLNL &RO & % Q B3DQDPD PHGLD )LOH 6WUHHWBVFHQH B&RO & % Q B3DQDPD BFD B SQJ 3DJH &RORQ &LW\ ,PDJH KWWSV ZZZ ÁLFNU FRP SKRWRV SKRWRUXVFK 3DJH 3ODWH 7HFWRQLFV ,PDJH KWWS ZZZ VFLHQFHGDLO\ FRP UHOHDVHV KWP 3DJH 0D\ 3DQDPD &DQDO ,PDJH KWWS DUFKLYH ZLUHG FRP WKLVGD\LQWHFK XV SDQDPD FDQDO FRQVWUXFWLRQ 3DJH 0HQ 6WDQGLQJ 2Q 5DLOURDG ,PDJH KWWSV XISFPFROOHFWLRQ ZRUGSUHVV FRP 3DJH &RQVWUXFWLRQ ,Q &DQDO =RQH ,PDJH KWWS ZZZ XIGF XÁ HGX 3&0, ["VHDUFK &RO RQ YR 3DJH -DPDLFDQ :RUNHUV ,PDJH KWWSV XISFPFROOHFWLRQ ZRUGSUHVV FRP 3DJH %UHHGLQJ *URXQG ,PDJH KWWS EHKP OX EORJ HQ QHZV UXWD SDQDPHULFDQD QHZV SDQDPD FLW\ DQG FRORQ 3DJH 3URYLQFLD 'H &RORQ 3DQDPD ,PDJH KWWS XSORDG ZLNLPHGLD RUJ ZLNLSHGLD FRPPRQV WKXPE D D %$55,2B685 MSJ S[ %$55,2B685 MSJ 3DJH &RORQ ,PDJH KWWS ZZZ RQHZRUOGRQHMRXUQH\ FRP ZS FRQWHQW XSORDGV &RORQ MSJ 3DJH &DWHGUDO 'H &RORQ 3DQDPD ,PDJH KWWS XSORDG ZLNLPHGLD RUJ ZLNLSHGLD FRPPRQV WKXPE E &DWHGUDOBGHBODB,QPDFXODGDB&RQFHSFL & % QB&RORQ MSJ S[ &DWHGUDOBGHBODB,QPDFXODGDB


&RQFHSFL & % QB&RORQ MSJ 3DJH &ULVWREDO &RORQ ,PDJH KWWSV XISFPFROOHFWLRQ ZRUGSUHVV FRP WDJ VWUHHW 3DJH 3DUTXH 1DFLRQDO 3RUWREHOR ,PDJH KWWS XSORDG ZLNLPHGLD RUJ ZLNLSHGLD FRPPRQV WKXPE G G )XHUWHB6DQB-HURQLPRBHQB3RUWREHORBYLVWDBJHQHUDO MSJ S[ )XHUWHB6DQB-HURQLPRBHQB3RUWREHORBYLVWDBJHQ HUDO MSJ 3DJH 3DUTXH 1DFLRQDO 3RUWREHOR &ORVH 8S ,PDJH KWWS ZZZ SODQHWDD]XO FRP P[ VLWH ZS FRQWHQW XSORDGV %$7(5$ MSJ 3DJH &RQWDLQ <DUG 3DQDPD 5DLOZD\ ,PDJH KWWSV ZZZ Á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ÀVLFR GH &KLULTXL MSJ 3DJH &DULEEHDQ 6HD ,PDJH KWWS PRGHVKLIW RUJ WKLV LV SDQDPD DPELWLRXV JRUJHRXV DQG LQGHSHQ GHQW DW ODVW 3DJH /LJKWQLQJ 6WRUP ,PDJH KWWS WKHVFXWWOHÀVK FRP ZS FRQWHQW XSORDGV OLJKWQLQJ MSJ 3DJH 7DPERULWR 'DQFHU ,PDJH KWWS XSORDG ZLNLPHGLD RUJ ZLNLSHGLD FRPPRQV (PSROOHUDGDB GHB3DQDP & $ MSJ 3DJH .XQD :RPDQ ,PDJH KWWSV ZZZ ÁLFNU FRP SKRWRV KLGHNLBQDLWR 3DJH 3DQDPD &DUQLYDO ,PDJH KWWS SDQDPDYLHMDHVFXHOD FRP ZS FRQWHQW XSORDGV SDQDPD FDUQDYDO MSJ 3DJH $IUR $QWLOOHDQV ,PDJH KWWS ZZZ XIGF XÁ HGX 3&0, 3DJH +RXVLQJ ,Q &RORQ ,PDJH KWWS PHULGLWKNRKXW SKRWRVKHOWHU FRP LPDJH , - 83& (=% 5HIHUHQFHV &RYHU ,PDJH KWWSV XISFPFROOHFWLRQ ZRUGSUHVV FRP




´0\ PLVVLRQ LQ OLIH LV QRW PHUHO\ WR VXUYLYH EXW WR WKULYH DQG WR GR VR ZLWK VRPH SDVVLRQ VRPH FRPSDVVLRQ VRPH KXPRU DQG VRPH VW\OH µ 0D\D $QJHORX

‹ .(1'5$ &+5,67,1$ +<621 $ PDVWHU·V UHSRUW VXEPLWWHG WR WKH IDFXOW\ RI WKH &2//(*( 2) $5&+,7(&785( 3/$11,1* $1' /$1'6&$3( $5&+,7(&785( LQ SDUWLDO IXOÀOOPHQW RI WKH UHTXLUHPHQWV IRU WKH GHJUHH RI 0$67(5 2) /$1'6&$3( $5&+,7(&785( ,Q WKH *UDGXDWH &ROOHJH RI 7+( 81,9(56,7< 2) $5,=21$ 6SULQJ




Turn static files into dynamic content formats.

Create a flipbook
Issuu converts static files into: digital portfolios, online yearbooks, online catalogs, digital photo albums and more. Sign up and create your flipbook.