2011_1

$ 0$*$=,1( 2) 7+( $0(5,&$1 &+$0%(5 2) &200(5&( ,1 *(25*,$

,668(

)(% 0$5

,QYHVWRU JH

$P&KDP 0HHWV .REDOLD &\EHU :DUIDUH LQ *HRUJLD +RWHO ,QGXVWU\ $QDO\VLV

*HRUJLD RQ 0DSV

,QYHVWRU JH

,QYHVWRU JH &217(17

$P&KDP 0HHWV 0LQLVWHU .REDOLD

3XWWLQJ *HRUJLD RQ WKH *RRJOH 0DS 20& -XPS6WDUW LV PDSSLQJ *HRUJLD DQG KRSHV LWV GDWD ZLOO EH LQFOXGHG LQ *RRJOH 0DSV 1HZ 7DVN )RUFH 0DNHV *HRUJLD D 3ULRUW\ 7KH $WODQWLF &RXQFLO FUHDWHG D QHZ WDVN IRUFH IRU *HRUJLD 8 6 UHODWLRQV

%XVLQHVV *HWV D 1HZ 9RLFH LQ 3DUOLDPHQW

,QYHVWRU JH VSRNH ZLWK 8*7 3UHVLGHQW *HRUJH &KLUDNDG]H DERXW WKH QHZ %XVLQHVV &RXQFLO LQ 3DUOLDPHQW $XFWLRQV *R 2QOLQH LQ 7ELOLVL

$Q LQWURGXFWLRQ WR &LW\ +DOO·V LDXFWLRQ JH

7KH :RUOG LQ ,QYHVWRU JH UHSXEOLVKHV WKH FRQFOXVLRQ RI WKH 3ULFH:DWHUKRXVH&RRSHU UHSRUW

%DQNV %HWWLQJ RQ ,QQRYDWLRQ

1HZ EDQNLQJ SURGXFWV JLYH FXVWRPHUV UHDVRQV WR VSHQG

$Q $UELWUDWRU IRU %XVLQHVV ,QYHVWRU JH LQWHUYLHZV *LRUJL 3HUWDLD WKH QHZ EXVLQHVV RPEXGVPDQ

: LPP %LOO 'DQQ $ QHZ GHDO ZLWK 3HSVL ,QYHVWRU JH LQWHUYLHZHG :LPP %LOO 'DQQ DERXW SRVVLEOH GHYHORSPHQWV IROORZLQJ WKH UHFHQW GHDO ZLWK 3HSVL

-XLFH &DQQHG )UXLW DQG 0HDW

$ EULHI RYHUYLHZ RI GHYHORSPHQWV DQG SRWHQWLDO LQ WKH IRRG SURFHVVLQJ LQGXVWU\ +RWHO ,QGXVWU\ $QDO\VLV

$Q LQGXVWU\ DQDO\VLV E\ &DOWULGHU $GYLVRUV IRU WKH *HRUJLDQ 1DWLRQDO 7RXULVP $JHQF\ %XLOGLQJ %HWWHU %XVLQHVV

*HRUJLDQ EXVLQHVV OHDGHUV DUH XVLQJ &RUSRUDWH 6RFLDO 5HVSRQVLELOLW\ WR LPSURYH SURGXFW TXDOLW\ &RXQWHUIHLW 3URGXFWV

,PSRUWHUV ZDQW PRUH UHJXODWLRQ RQ TXDOLW\ RI SURGXFWV LQ WKH PDUNHW

7KH *URZLQJ &\EHU 7KUHDW

$ 0XOWL OHYHO FKDOOHQJH UHTXLUHV D PXOWL OHYHO UHVSRQVH .XWDLVL WKH 6HFRQG &DSLWDO

7KH <HDU RI .XWDLVL LV EULQJLQJ D IUHVK VWDUW IRU *HRUJLD·V VHFRQG FLW\ 1HZ LQ $GMDUD

$Q RYHUYLHZ RI QHZ EXLOGLQJ SODQV LQ %DWXPL DQG %H\RQG *HRUJLDQ )DVKLRQ LVWD

%HKLQG WKH JOLWWHU DQG WKH UXQZD\V LV WKHUH D *HRUJLDQ IDVKLRQ LQGXVWU\" &UHDWLQJ DQ (FRQRP\

+RZ WKH PRGHUQ *HRUJLDQ HFRQRP\ ² DQG *HRUJLDQ EXVLQHVV ² KDV HYROYHG

)(% 0$5

,QYHVWRU JH

$P&KDP *HRUJLD 3DWURQ 0HPEHUV

,QYHVWRU JH

┬Г 7KH $PHULFDQ &KDPEHU RI &RPPHUFH LQ *HRUJLD $OO ULJKWV UHVHUYHG 1R SDUW RI WKLV PDJD]LQH PD\ EH UH SULQWHG RU UHSURGXFHG RU XWLOL]HG LQ DQ\ IRUP RU E\ HOHFWURQLF

$P&KDP $FWLQJ ([HFXWLYH 'LUHFWRU 1LFROH -RUGDQLD

(GLWRU LQ &KLHI

&RS\ (GLWRU

0ROO\ &RUVR $ODVWDLU :DWW

0DUNHWLQJ 3URPRWLRQ %HOOD 0DNDULG]H 'LDQD .DULERYD

3URPRWLRQDO 'HVLJQ /HYDQ %DUDWDVKYLOL

0DJD]LQH 'HVLJQ DQG /D\RXW *LRUJL 0HJUHOLVKYLOL :

ULWHUV &DOWULGHU $GYLVRUV /WG 1LFN &OD\WRQ 0ROO\ &RUVR

3KRWRJUDSKV

0DLD (GLODVKYLOL 0RQLFD (OOHQD (WHUL 0DLVXUDG]H .KDWXQD 0VKYLGREDG]H 1LQR 3DWVXULD

0ROO\ &RUVR

&RYHU SKRWRJUDSK

20* -XPS6WDUW

PHFKDQLFDO RU RWKHU PHDQV QRZ NQRZQ RU KHUHDIWHU LQYHQWHG LQFOXGLQJ SKRWRFRS\LQJ DQG UHFRUGLQJ RU LQ DQ\ LQIRUPDWLRQ VWRUDJH RU UHWULHYDO V\VWHP ZLWKRXW SHUPLVVLRQ 7KH RSLQLRQV H[SUHVVHG LQ WKLV PDJD]LQH do not reямВ HFW WKH RSLQLRQ RI WKH $PHULFDQ &KDPEHU RI &RPPHUFH LQ *HRUJLD QRU LWV %RDUG 0HPEHUV RU VWDII XQOHVV RWKHUZLVH VWDWHG $P&KDP *HRUJLD QHLWKHU HQGRUVHV QRU FDQ EH KHOG OLDEOH IRU DQ\ HYHQWXDOLW\ DULVLQJ IURP WKH XVH RI DQ\ SURGXFW RU VHUYLFH DGYHUWLVHG ZLWKLQ WKH SDJHV RI WKLV LVVXH ,QYHVWRU JH LV SULQWHG E\ &(=$11( $P&KDP *HRUJLD 0HOLNLVKYLOL 6WUHHW WK ямВ RRU

6SHFLDO WKDQNV WR WKH $P&KDP VWDII ,QYHVWRU JH (GLWRULDO %RDUG 20* -XPS6WDUW *HRUJLDQ 1DWLRQDO ,QYHVWPHQW $JHQF\ &DOWULGHU $GYLVRUV /WG

7HO DPFKDP#DPFKDP JH HGLWRU#DPFKDP JH ZZZ DPFKDP JH

ZZZ LQYHVWRU JH

)(% 0$5

,QYHVWRU JH

)(% 0$5

,QYHVWRU JH

,QYHVWRU JH LQWHUYLHZHG -HII +DDFN SURJUDP GLUHFWRU DW 20& -XPS6WDUW ,QWHUQDWLRQDO DERXW WKH 20&┬╖V ZRUN WR PDS *HRUJLD

3XWWLQJ *HRUJLD RQ WKH *RRJOH 0DS

7

KLV \HDU *HRUJLD ZLOO HQWHU WKH PRGHUQ ZRUOG r WKH *RRJOH 0DS ZRUOG r WKDQNV WR WKH ZRUN RI 20& -XPS6WDUW DQG D WHDP RI GHGLFDWHG PDSSHUV ,Q -HI I +DDFN DQG KLV VWDI I H[SDQGHG D SLORW SURJUDP WR PDS 6KLGD .DUWOL DQG GHFLGHG WR PDS WKH ZKROH FRXQWU\ 7RGD\ HYHU\ UHJLRQ RI *HRUJLD r ZLWK WKH H[FHSWLRQ RI $ENKD]LD DQG 6RXWK 2VVHWLD r LV PDSSHG )RU PRQWKV PDSSHUV FRPEHG WKHLU EDFN\DUGV WKURXJKRXW *HRU JLD DUPHG ZLWK QRWHERRNV ROG PDSV DQG *36 GHYLFHV 7KH UHVXOW LV DQ RSHQ VRXUFH VHDUFKDEOH PDS RI WKH FRXQWU\ DW ZZZ PDSVSRW JH 7KH PDSSLQJ GDWD LV LQYDOXDEOH WR EXVLQHVVHV DQG SRWHQWLDO LQYHVWRUV ORRN LQJ DW *HRUJLD +DDFN H[SODLQHG o$ ORW RI WLPHV SHRSOH GRQn W UHDOL]H WKH LPSRUWDQFH RI JHRJUDSKLF GDWD LQ ZKDW WKH\ GR EXW LW LV SUHWW\ PXFK FURVV FXWWLQJ DFURVV DOO LQGXVWULHV p KH VDLG o>%@HLQJ DEOH WR XVH WKLV GDWD SUR YLGHV WR EHWWHU DQDO\VLV IRU \RXU EXVLQHVV LW DGGV D VRUW RI VWLPXOXV DI IHFW WR KHOS SHRSOH SODQ IRU QHZ GHYHORSPHQWV DQG

)(% 0$5

SURGXFW GLVWULEXWLRQe ,W DGGV D OHYHO RI efямБ FLHQF\ WR EXVLQHVV p +DDFN D IRUPHU 3HDFH &RUSV YROXQ WHHU WR *HRU JLD VDLG GDWD FROOHFWHG E\ 20& -XPS6WDUW KDV EHHQ VXEPLWWHG WR *RRJOH 2QFH LW LV FRQYHUWHG E\ *RRJOHnV PDS PDNLQJ VRIWZDUH LW ZLOO EH XSORDGHG WR *RRJOH 0DSV 3XWWLQJ *HRUJLD RQ WKH PRVW IDPRXV PDS LQ WKH ZRUOG FDQ KDYH D ZLGH UHDFK LQJ LPSDFW IRU WKH FRXQWU\ KH QRWHG

o7KHUH KDV EHHQ D ORW RI WDON DERXW *RRJOH 0DSV LQ *HRUJLD DQG LW LV SDLQ LQJ D ORW RI SHRSOH WR VHH WKDW \RX JR DOO DURXQG WKH ZRUOG DQG VHH GDWD DQG \RX JHW WR *HRUJLD DQG LW LV WKLV HHULH EODQN VSRW RQ WKH PDS , WKLQN HYHQ MXVW SV\ FKRORJLFDOO\ WKDW KDV NLQG RI D QHJDWLYH HIIHFW p +DDFN VDLG o)RU *HRUJLD LW LV YHU\ PXFK DERXW JHWWLQJ LQIRUPDWLRQ RXW WKHUH EHLQJ DEOH to ямБ QG WKHLU ZD\ DURXQG p

86 'HSDUWPHQW RI 6WDWH 5HPRYHV *HRUJLD IURP 7UDYHO $OHUWV /LVW 7KH 8 6 'HSDUWPHQW RI 6WDWH UHPRYHG *HRU JLD IURP WKH 7UDYHO $OHUWV OLVW RQ -DQXDU\ p7KH 0LQLVWU\ RI )RUHLJQ $IIDLUV RI *HRUJLD ZHOFRPHV WKH GHFL VLRQ *HRUJLD ZDV UHPRYHG IURP WKH 7UDYHO $OHUWV OLVW SXEOLVKHG RQ the ofямБ FLDO ZHEVLWH RI WKH 'HSDUWPHQW RI 6WDWH 7KH GHFLVLRQ RQFH DJDLQ YDOLGDWHV *HRU JLDnV SURJUHVV PDGH LQ DUHDV RI VXSUHPDF\ RI ODZ GHPRFUDF\ DQG ODZ HQIRUFHPHQW p *HRU JLDQ 'HSXW\ )RUHLJQ 0LQLVWHU 1LQR .DODQGDG]H VDLG

,QYHVWRU JH

)(% 0$5

8 6 $66,67$1&( 72 7+( 3(23/( 2) *(25*,$ FulямБ OOLQJ WKH %LOOLRQ 3OHGJH

тАЬThis money will help the people of Georgia recover from the damage that has been inямВ LFWHG RQ WKHLU HFRQRP\ DQG VHQG D FOHDU PHVVDJH WKDW WKH 8QLWHG 6WDWHV ZLOO QRW DEDQGRQ WKLV \RXQJ GHPRFUDF\┬┤ 6HQDWRU -RVHSK %LGHQ $XJXVW

)

ROORZLQJ WKH August 2008 conямВ LFW WKH 8 6 *RY HUQPHQW SOHGJHG RYHU ELOOLRQ LQ DVVLVWDQFH WR WKH *HRUJLDQ SHRSOH 7KH DVVLVWDQFH IRFXVHV RQ KHOSLQJ *HRUgian people recover from the conямВ LFW DQG KHOSLQJ PDNH *HRUJLD D PRUH SURVSHURXV DQG GHPRFUDWLF QDWLRQ

(FRQRPLF *URZWK (FRQRPLF SURJUDPV VXSSRUWHG IXQGLQJ IRU WKH QHZ Overseas Private Investment Corporation (OPIC) ямБ QDQF LQJ DQG LQFUHDVLQJ DFFHVV WR FDSLWDO WKURXJK ORDQ JXDUDQ WHHV 2YHU PLOOLRQ ZDV SURYLGHG WR VXSSRUW WKH HQKDQFH ,PSDFWLQJ /LYHV +XPDQLWDULDQ $VVLVWDQFH PHQW RI HQHUJ\ VHFXULW\ LQFOXGLQJ 7KH 8 6 JRYHUQPHQW SURYLGHG UHKDELOLWDWLRQ RI WKH (DVW :HVW 3URYLGHG RYHU PLOOLRQ LQ HPHUJHQF\ IRRG RYHU PLOOLRQ LQ LPPHGLDWH QDWXUDO JDV SLSHOLQH PLOOLRQ FORWKLQJ KRXVLQJ DQG PHGLFDO FDUH WR UHOLHYH post conямВ LFW DVVLVWDQFH WR SUR ZDV DOORFDWHG WR VXSSRUW D URDG VXIIHULQJ RI YXOQHUDEOH SRSXODWLRQV YLGH IRRG VKHOWHU DQG OLYHOLKRRG FRQQHFWLQJ 7ELOLVL WR 6DPWVNKH VXSSRUW WR ,QWHUQDOO\ 'LVSODFHG -DYDNKHWL 7KRXVDQGV RI *HRU KRXVHKROGV DQG ,'3 IDPLOLHV UHFHLYHG 3HUVRQV ,'3V

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nV HFR JUDGXDWHV RI YRFDWLRQDO WUDLQLQJ FHQWHUV QRPLF JRYHUQDQFH FDSDFLW\ 'HPRFUDF\ DQG 6XSSRUWHG RYHU SUDFWLFLQJ QXUVHV FRPSOHWH PLOOLRQ ZLOO EH SURYLGHG WR LQ *RYHUQDQFH QXUVLQJ WUDLQLQJ FRXUVHV FUHDVH HFRQRPLF RSSRUWXQLWLHV IRU 7KH 86* SURYLGHG RYHU RYHU ORFDO FRPPXQLWLHV DFURVV 6XSSRUWHG IDLU DQG IUHH ORFDO HOHFWLRQV PLOOLRQ WR HQVXUH IUHH DQG IDLU *HRUJLD DQG LPSURYH OLYHOLKRRGV HOHFWLRQV ZHQW WR IRU GLVDGYDQWDJHG IRRG LQVHFXUH 1*2V IRU SURMHFWV IRFXVHG RQ YXOQHUDEOH DQG ,'3 SRSXODWLRQV VKRZLQJ WKH LPSRUWDQFH RI WKH UROH RI WKH PHGLD DQG ,Q DGGLWLRQ RYHU PLOOLRQ ZLOO VXSSRUW ODUJH VFDOH PX SHRSOH LQ HQVXULQJ IDLU HOHFWLRQV 79 GHEDWHV ZHUH KHOG nicipal infrastructure development in at least ямБ YH PXQLFL DFURVV *HRUJLD IRU FDQGLGDWHV DQG SDUW\ OHDGHUV EHIRUH WKH SDOLWLHV DIfected by the 2008 conямВ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nV DFFHVV WR D UDQJH RI VRXUFHV RI QHZV DQG LQIRUPDWLRQ SHRSOH RI *HRUJLD VDIH DQG XSKROG WKH UXOH RI ODZ E\ GHYHORSLQJ SURIHVVLRQDO PHGLD WKURXJKRXW WKH FRXQW\

,QYHVWRU JH

1HZ 7DVN )RUFH 0DNHV *HRUJLD D 3ULRULW\ 7KH $WODQWLF &RXQFLO FUHDWHG D QHZ WDVN IRUFH LQ $XJXVW WR IRFXV RQ WKH LVVXHV GHILQLQJ :DVKLQJWRQ┬╖V UHODWLRQVKLS ZLWK *HRUJLD ,QYHVWRU JH VSRNH ZLWK 'DPRQ :LOVRQ D PHPEHU RI WKH WDVN IRUFH ┬▓ DV ZHOO DV WKH $WODQWLF &RXQFLO┬╖V ([HFXWLYH 9LFH 3UHVLGHQW DQG 'LUHFWRU RI WKH ,QWHUQDWLRQDO 6HFXULW\ 3URJUDP

$

VSHFLDO WDVN IRUFHn V UHSRUW RQ *HRUJLD ZLOO KHOS JXLGH 8 6 SROLF\ LQ WKH UHJLRQ DFFRUGLQJ WR WKH $WODQWLF &RXQFLOnV 'DPRQ :LOVRQ 7KH WDVN IRUFH KHDGHG E\ 6HQDWRU -HDQQH 6KDKHHQ ' 1+ DQG 6HQDWRU /LQGVH\ *UDKDP 5 6& KDV KHOG KLJK OHYHO PHHWLQJV ZLWK WKH *HRU JLDQ OHDG HUVKLS WKH EXVLQHVV FRPPXQLW\ FLYLO VRFLHW\ DQG RSSRVLWLRQ SDUWLHV WR VWXG\ the issues and problems that could deямБ QH WKH FRXQWU\nV QHDU IXWXUH o7KH $WODQWLF &RXQFLO ZDV FRQFHUQHG DERXW *HRUJLD p :LOVRQ VDLG o2QH LW LV QRW KLJK RQ WKH DJHQGD LQ :DVKLQJWRQ DQG %UXVVHOV 7ZR WKHUH LV QRW HQRXJK FODULW\ LQ SROLF\ RQ *HRU JLD DV WR ZKDW ZH VKRXOG GR DQG KRZ ZH VKRXOG VXSSRUW *HRUJLDnV DVSLUDWLRQV WR MRLQ WKH ZHVW p +H DGGHG WKDW WKH WDVN IRUFH LV DOVR IRFXVHG RQ HQVXULQJ WKDW *HRU JLD GRHV QRW EHFRPH D oSDUWLVDQ LVVXH p o*HRUJLD QHHGV WR EH D ELSDUWLVDQ LVVXH 7KHUH VKRXOG EH ELSDUWLVDQ VXS SRUW IRU *HRU JLDnV DVSLUDWLRQV WRZDUGV WKH ZHVW p :LOVRQ ZKR RYHUVDZ *HRU JLDQ SROLF\ DW WKH :KLWH +RXVH IURP WR VDLG D UHFHQW WULS WR *HRU JLD identiямБ HG VHYHUDO UHIRUP VXFFHVVHV r DQG FKDOOHQJHV r WKDW FRXOG VKDSH WKH FRQWH[W RI IXWXUH :DVKLQJWRQ 7ELOLVL UHODWLRQV +H VDLG WKDW WKH GHSWK RI *HRU JLDnV FRPPLWPHQW WR ZHVWHUQ LQWHJUDWLRQ r DV ZHOO DV WKH OLQJHULQJ VHFXULW\ FRQFHUQV r made a signiямБ FDQW LPSUHVVLRQ RQ WKH WDVN IRUFH GXULQJ LWV ZHHN ORQJ YLVLW $FFRUGLQJ WR :LOVRQ ZLGHVSUHDG VXSSRUW IRU ZHVWHUQ LQWHJUDWLRQ LV oNH\p

DQG oFULWLFDO p o7KDQN *RG WKDW *HRUJLD ZDQWV WR GR WKDW 7KDQN *RG *HRU JLD ZDQWV WR EH VR GHPRFUDWLF p KH VDLG %XW oWHVWVp UHPDLQ IRU *HRU JLDnV IXWXUH GHYHORSPHQW KH QRWHG LQFOXGLQJ KRZ WR IRVWHU DQ LQGHSHQGHQW PHGLD LQ D VPDOO PDUNHW DGRSWLQJ D IDLU HOHFWLRQ FRGH DQG WKH HOHFWLRQ F\FOH 7UDQVSDUHQW IXQGLQJ IRU SROLWLFDO SDU WLHV DQG MXGLFLDO UHIRUPV DUH DOVR DUHDV XQGHU VFUXWLQ\ 7KH WDVN IRUFH LV ZRUNLQJ RQ D UHSRUW based on its ямБ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n%ULHQ $OEULJKW 6WRQHEULGJH *URXS -RVHSK 5DOVWRQ &RKHQ *URXS 0DPXND7VHUHWHOL $PHULFDQ 8QLYHU VLW\ .XUW 9RONHU $WODQWLF &RXQFLO 6$,6 &KXFN :DOG 'HORLWWH .HQ :ROODFN 1D WLRQDO 'HPRFUDWLF ,QVWLWXWH 5RVV :LOVRQ $WODQWLF &RXQFLO

6HOOLQJ 6HOOLQJ 6ROG ,QYHVWRU JH RIIHUV DQ RYHUYLHZ RI UHFHQW KRVSLWDO SULYDWL]DWLRQ VDOHV EDVHG RQ WKH 0LQLVWU\ RI (FRQRP\ DQG 6XVWDLQDEOH 'HYHORSPHQW┬╖V ZHEVLWH ZZZ SULYDWL]DWLRQ JH ,QYHVWRU JH ZLOO SXEOLVK DQ RYHUYLHZ RI WKH KHDOWK VHFWRU LQ WKH $SULO LVVXH (7(5, 0$,685$'=(

)RUHLJQ ,QYHVWRU 'DQLHO *XIWD KDV DFTXLUHG VHYHUDO PHGLFDO LQVWLWXWLRQV LQ *HRUJLD r *HQHUDO 7KHUDS\ &OLQLF 7KH %URWKHU =XEDODVKYLOLnV 3HGLDWULF &OLQLF DQG WKH H\HFOLQLF o9 LVLRQ p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o$YHUVL 3KDUPDp LV REOLJHG WR SD\ RI WKH SULYDWL]DWLRQ IHH ZLWKLQ RQH PRQWK DIWHU WKH SXUFKDVH PLOOLRQ QLQH PRQWKV DIWHU WKH DXFWLRQ DQG DQRWKHU PLOOLRQ RQ WKH WK PRQWK DIWHU WKH SXUFKDVH 7KH UHVW RI WKH VXP PXVW EH SDLG TXDUWHUO\ ZLWKLQ RQH \HDU LQ HTXDO SURSRUWLRQV )(%58$5<

,QYHVWRU JH

7KH :RUOG LQ 7KH DFFHOHUDWLQJ VKLIW RI JOREDO HFRQRPLF SRZHU FKDOOHQJHV DQG RSSRUWXQLWLHV

,Q WKHLU -DQXDU\ UHSRUW 3ULFH:DWHUKRXVH&RRSHU XSGDWHG SURMHFWV RQ FRXQWU\ HFRQRPLF GHYHORSPHQW DQG VHFWRU GHYHORSPHQW 7KLV LV D UHSULQW RI WKH UHSRUW DXWKRUV┬╖ FRQFOXVLRQV 7KH IXOO UHSRUW LV DYDLODEOH DW ZZZ SZF FRP

7

he ямБ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

)(% 0$5

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niямБ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nV ODUJHVW HFRQRP\ DV HDUO\ DV EDVHG RQ *'3 DW 333V RU DURXQG

EDVHG RQ *'3 DW 0(5V )LIWK ZKLOH WKH * HFRQRPLHV ZLOO DOPRVW LQHYLWDEO\ VHH WKHLU UHODWLYH *'3 VKDUHV GHFOLQH DOWKRXJK WKHLU DYHUDJH SHU FDSLWD LQFRPHV ZLOO UHPDLQ ZHOO DERYH WKRVH LQ HPHUJLQJ PDUNHWV

WKH ULVH RI WKH ( HFRQRPLHV VKRXOG ERRVW DYHUDJH * LQFRPH OHYHOV LQ DEVROXWH WHUPV WKURXJK FUHDWLQJ PDMRU QHZ PDUNHW RSSRUWXQLWLHV 7KLV ODUJHU JOREDO PDUNHW VKRXOG DOORZ EXVLQHVVHV LQ * HFRQRPLHV WR VSHFLDOLVH PRUH FORVHO\ LQ WKHLU DUHDV RI FRPSDUDWLYH DGYDQWDJH ERWK DW KRPH DQG RYHUVHDV ZKLOH * FRQVXP ers continue to beneямБ W IURP ORZ FRVW LPSRUWV IURP WKH ( DQG RWKHU HPHUJ LQJ HFRQRPLHV 6L[WK WUDGH EHWZHHQ WKH ( DQG WKH * VKRXOG WKHUHIRUH EH VHHQ DV D PXWX ally beneямБ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

DQG LQFUHDVLQJ LQSXW FRVWV IRU QDWXUDO UHVRXUFH LPSRUWHUV

,QYHVWRU JH

$Q $UELWUDWRU IRU %XVLQHVV ,QYHVWRU JH LQWHUYLHZHG *LRUJL 3HUWDLD WKH QHZO\ DSSRLQWHG EXVLQHVV RPEXGVPDQ DERXW WKH QHZ JRYHUQPHQW FUHDWHG SRVLWLRQ WR GHIHQG EXVLQHVV LQWHUHVWV

7

KH JRYHUQPHQW DQQRXQFHG D QHZ RPEXGVPDQ IRU EXVLQHVV LQ -DQXDU\ D SRVLWLRQ FUHDWHG DV SDUW RI WKH QHZ WD[ FRGH :KLOH GHWDLOV RI WKH SRVLWLRQ DUH VWLOO XQGHU GLVFXVVLRQ DV SDUW RI WKH WD[ FRGHnV VHFRQGDU\ OHJLVODWLRQ *LRU JL 3HUWDLD VDLG WKH RPEXGVPDQ ZLOO EH D oEULGJHp EHWZHHQ JRYHUQPHQW DQG EXVLQHVV o,W LV OLNH D EULGJH EHWZHHQ JRYHUQ PHQW DQG EXVLQHVV IRU PRUH FRPPX QLFDWLRQ IRU PRUH LQIRUPDWLRQ IRU WKH

JRYHUQPHQW DERXW ZKDW DUH WKH SUREOHP >IDFLQJ EXVLQHVV@ DQG JHQHUDOO\ WR VROYH WKH EXVLQHVV SUREOHPV p KH VDLG o>7KDW LV VRPHWKLQJ@ WKDW ERWK VLGHV WKH JRYHUQPHQW DQG EXVLQHVVHV DUH LQ WHUHVWHG LQ p 3HUWDLD SUHYLRXVO\ VHUYHG DV DQ DGYLVRU WR 3ULPH 0LQLVWHU 1LND *LODXUL DQG DQ LQWHUPHGLDU\ EHWZHHQ WKH &KDQ FHOOHU\ DQG WKH EXVLQHVV FRPPXQLW\ +H

UHVLJQHG DV DGYLVRU ZKHQ KH DFFHSWHG KLV QHZ SRVLWLRQ +LV QHZ SRVLWLRQ KRZHYHU ZLOO JLYH KLP PRUH SRZHU DQG PRUH LQGHSHQGHQFH WR ZRUN ZLWK EXVLQHVVHV DQG QHJRWLDWH OHJLVODWLYH r DQG LPSOHPHQWDWLRQ r RE VWDFOHV WKDW LPSHGH EXVLQHVV 3HUWDLD VWUHVVHG WKDW WKH SRVLWLRQ LV DOVR oD WRROp WR HQVXUH WKH ULJKW PHVVDJH LV JHWWLQJ WR JRYHUQPHQW TXLFNO\ r LQ D IRUPDW SROLF\ PDNHUV FDQ XQGHUVWDQG o,W LV WKH PRVW LPSRUWDQW SDUW WR JHW WKLV LQIRUPDWLRQ ULJKW DQG e WR GHOLYHU LW WKH ULJKW ZD\ 7KLV LV ZKDW WKH EXVLQHVV RPEXGVPDQ LV GRLQJ p KH VDLG o, KDYH WKH HDU RI WKH SULPH PLQLVWHU ямБ QDQFH PLQLVWHU r DQ\ PLQLVWHU r SDUOLD PHQW DQG eDOO GRRUV RI WKH JRYHUQPHQW DUH RSHQ IRU PH DQG DOO GRRUV RI WKH EXVLQHVVHV DUH RSHQ IRU PH 7KDW JLYHV PH WKH RSSRUWXQLW\ WR JHW LQIRUPDWLRQ DQG SUHVHQW LW LQ WKH ULJKW ZD\ p

%XVLQHVV *HWV D 1HZ 9RLFH LQ 3DUOLDPHQW ,QYHVWRU JH VSRNH ZLWK *HRUJH &KLUDNDG]H WKH SUHVLGHQW RI 8*7 DERXW SODQV IRU D QHZ EXVLQHVV FRXQFLO LQ SDUOLDPHQW DQG KRZ LW FRXOG EROVWHU WUXVW EHWZHHQ EXVLQHVV DQG JRYHUQPHQW

$

QHZ EXVLQHVV FRXQFLO IRU EXVL QHVV DVVRFLDWLRQV DQG PHPEHUV RI SDUOLDPHQW FRXOG JLYH EXVL QHVVHV WKH FKDQFH WR WDFNOH SUREOHPV ZLWK ODZV WKDW LPSHGH GHYHORSPHQW 7KH FRXQFLO D SODQQHG IRUXP IRU EXVLQHVV DVVRFLDWLRQV WR PHHW ZLWK 'D YLW %DNUDG]H WKH KHDG RI SDUOLDPHQW DQG VHOHFW 03V IURP WKH UXOLQJ SDUW\ DQG RSSRVLWLRQ ZDV DQ LQLWLDWLYH IURP $P&KDP *HRUJLD %XVLQHVV $VVRFLDWLRQ RI *HRUJLD %$* DQG RWKHU EXVLQHVV DV VRFLDWLRQV DFFRUGLQJ WR 8*7 3UHVLGHQW *HRUJH &KLUDNDG]H D SDWURQ PHPEHU )(% 0$5

RI $P&KDP *HRUJLD DQG WKH SUHVLGHQW RI %$* &KLUDNDG]H QRWHG WKDW EXVLQHVVHV DUH LQWHUHVWHG LQ GHYHORSLQJ D GLDORJXH ZLWK %DNUDG]H DQG PHPEHUV RI SDUOLDPHQW VR WKH\ DUH EHWWHU LQIRUPHG EHIRUH WKH\ YRWH RQ SRWHQWLDO ODZV o,QIOXHQFLQJ WKH SDUOLDPHQW DQG WDONLQJ ZLWK WKHP DERXW ORQJ WHUP FKDO OHQJHV RU ORQJ WHUP VROXWLRQV WR WKRVH FKDOOHQJHV LV YHU\ LPSRUWDQW EHFDXVH WKH\ DUH WKH RQHV r WKURXJK WKHLU PHP EHUV r WKDW QHHG WR DGRSW WKH GLI IHUHQW ODZV WKDW DUH FRPLQJ IURP WKH JRYHUQ PHQW RU LQLWLDWHG E\ WKHPVHOYHV p KH VDLG o3DUOLDPHQW LV WKH ERG\ WKDW GHFLGHV WKH ORQJ WHUP VWUDWHJ\ UHJDUGLQJ WKH ODZV LQ WKH FRQVWLWXWLRQ DQG FRQVWLWXWLRQDO FKDQJHV DQG VR RQ p &KLUDNDG]H VDLG WKH SDUOLDPHQW FDQ

EH D oVWURQJ OLQNp EHWZHHQ EXVLQHVV DQG WKH JRYHUQPHQW LI WKH FRXQFLO LV XVHG HI IHFWLYHO\ 'HWDLOV DERXW WKH VL]H DQG PDNH XS RI WKH FRXQFLO DUH VWLOO EHLQJ GHYHORSHG E\ %DNUDG]H %XW &KLUDNDG]H VDLG WKHUH LV OLWWOH GRXEW DERXW LWV SRWHQWLDO LPSDFW %\ JLYLQJ EXVLQHVV DQ DGGLWLRQDO DYHQXH WR OREE\ LWV LQWHUHVWV WKH SDUOLDPHQW FDQ HQFRXUDJH HYHU\RQH LQ WKH JRYHUQPHQW WR OLVWHQ WR EXVLQHVV DQG LWV FRQFHUQV %XVLQHVVHV DQG 03V KH VDLG FDQ XVH WKH RSSRUWXQLW\ WR GLVFXVV UHDO FKDOOHQJHV r DQG SRWHQWLDO VROXWLRQV r LI WKH FRXQFLO LV XVHG DV WUXH ZRUNLQJ JURXS QRW MXVW D SODFH WR QHWZRUN o,I WKLV ZLOO MXVW EH D SODFH WR WDON , GRQn W WKLQN LW ZLOO DFFRPSOLVK PXFK %XW LI WKH\ XVH WKLV IRU H[SUHVVLQJ UHDO concerns and ямБ QGLQJ VROXWLRQV , WKLQN LW FRXOG EH D JRRG SODFH IRU WKDW p

,QYHVWRU JH

)(% 0$5

,QYHVWRU JH

)(% 0$5

$'9(57,6(0(17

,QYHVWRU JH

%DQNV %HWWLQJ RQ ,QQRYDWLRQ %DQN RI *HRUJLD DQG /LEHUW\ %DQN KDYH ODXQFKHG FUHDWLYH QHZ SURGXFWV WR DWWUDFW FOLHQWV ┬▓ DQG PRGHUQL]H VSHQGLQJ KDELWV

1

HZ FRQVXPHU EDQNLQJ SURGXFWV DUH PDNLQJ LW HDVLHU IRU *HRU JLDQV WR VSHQG /LEHUW\ %DQN ODXQFKHG D VHULHV RI JLIW FDUGV UHGHHPDEOH DW ORFDO PHUFKDQWV DQG %DQN RI *HRUJLD %R* GHYHORSHG D QHZ V\VWHP RI IDVW FDVK o606 ORDQ p *LRUJL $UYHODG]H GHSXW\ &(2 LQ FKDU JH RI VSHFLDO SURGXFWV DW /LEHUW\ %DQN VDLG WKH JLIW FDUG SURJUDP ZDV D ZD\ RI FKDQJLQJ VSHQGLQJ KDELWV r QRW MXVW DWWUDFWLQJ QHZ EXVLQHVV o, WKLQN SHUFHQW RI SD\PHQWV LQ *HRUJLD DUH PDGH E\ FDUG DQG WKH UHVW E\ FDVK , UHDOO\ GRQn W VHH D UHDVRQ ZK\ ZH VKRXOG QRW FKDQJH LW p KH VDLG тАЬ[L]ooking for a gift and ямБ QGLQJ WKH JLIW WDNHV WLPH HIIRUW 7KLV LV NLQG RI D VROXWLRQ \RX NLQG RI WUDQVIHU WKDW HIIRUW DQG WLPH WR WKH SHUVRQ ZKR UHFHLYHV WKH JLIW p 3OXV $UYHODG]H DGGHG WKH FDUGV WDNH WKH JXHVV ZRUN RXW RI JLIW JLYLQJ EHFDXVH WKH UHFLSLHQW FDQ EX\ H[DFWO\ what he or she wants. Cards can be purchased for speciямБ F VKRSV RU XQLYHUVDO FDUGV DUH DYDLODEOH ZKLFK FDQ EH UH GHHPHG DW DQ\ SDUWLFLSDWLQJ VWRUH RU VHUYLFH SURYLGHU 7KH UHVSRQVH IURP VKRSV WR WKH JLIW FDUG KDV DOVR EHHQ VWURQJ DFFRUGLQJ WR $UYHODG]H ZKR VDLG WKDW RYHU PHUFKDQWV r IURP KLJK HQG WR EDVLF FRQVXPHU JRRGV r DFFHSW WKH FDUGV ZKLFK ZHUH ODXQFKHG LQ 1RYHPEHU &RQFUHWH VWDWLVWLFV DERXW WKH QXPEHU RI FDUGV SXU FKDVHG ZLOO EH DYDLODEOH LQ D IHZ PRQWKV %R*n V QHZ SURGXFW r D ORDQ SURJUDP H[LVWLQJ FOLHQWV FDQ DFFHVV YLD 606 r ZDV ODXQFKHG LQ 1RYHPEHU DV ZHOO 6RSKLH %DOD YDG]H D EUDQG H[HFXWLYH DW %R* VDLG WKH QHZ ORDQV DGG oFRPIRUWp WR WKH EDQNLQJ H[SHULHQFH EHFDXVH FOLHQWV GRQnW KDYH WR JR WR D EDQN EUDQFK WR EH DSSO\ IRU D ORDQ 2QFH WKH WUDQVDFWLRQ LV DSSURYHG IXQGV DUH DFFHVVLEOH DW DQ\ %R* $70 7KH EDQN KDV DSSURYHG QHDUO\ IRXU WKRXVDQG ORDQV r ZRUWK PLOOLRQ *(/ r E\ 'HFHPEHU &RQVXPHU VSHQGLQJ LV RQ WKH ULVH DJDLQ DFFRUGLQJ WR ofямБ FLDO VWDWLVWLFV 7KH JRYHUQPHQW UHSRUWHG SHUFHQW growth over the ямБ UVW WKUHH TXDUWHUV RI :LWK D KLJK SHUFHQWDJH RI IRUHLJQ RZQHUVKLS DQG D FRPSHWLWLYH PDUNHW *HRUJLDQ EDQNV DUH NQRZQ IRU WKHLU XVH RI QHZ SURGXFWV DQG VHUYLFHV WR DWWUDFW FOLHQWV $FFRUGLQJ WR $OLFH 0XUUD\ DQ DQDO\VW IRU WKH (FRQR PLVW ,QWHOOLJHQFH 8QLW WKH *HRU JLDQ EDQNLQJ VHFWRU LV oWKH PRVW GHYHORSHGp LQ WKH &DXFDVXV r DQG RQ WKH URDG to recovery after the 2008 war and ямБ QDQFLDO FULVLV 7KH VHFWRU JUHZ RYHU percent over the ямБ UVW WKUHH TXDUWHUV of 2010, according to ofямБ FLDO VWDWLVWLFV )(% 0$5

,QYHVWRU JH

:LPP %LOO 'DQQ $ QHZ GHDO ZLWK 3HSVL IRU WKH IRRG SURFHVVLQJ JLDQW ,QYHVWRU JH LQWHUYLHZHG :LPP %LOO 'DQQ DERXW SRVVLEOH GHYHORSPHQWV IROORZLQJ WKH UHFHQW GHDO EHWZHHQ :%' DQG 3HSVL&R

0$,$ (',/$6+9,/,

$

V SDUW RI D GHDO DQQRXQFHG LQ HDUO\ 'HFHPEHU 3HSVL&R RQH RI WKH ZRUOGnV ODUJHVW IRRG DQG EHYHUDJH FRPSDQLHV ZLOO DFTXLUH RI :LPP %LOO 'DQQ )RRGV :%' WKH 5XVVLDQ JLDQW IRU ELOOLRQ $FFRUGLQJ

)(% 0$5

WR :%'nV ofямБ FLDO VWDWHPHQW WKH WUDQVDF WLRQ PDNHV 3HSVL&R WKH ELJJHVW SOD\HU RQ WKH 5XVVLDQ PDUNHW ZKLOH EROVWHULQJ LWV SRVLWLRQ LQ WKH UDSLGO\ JURZLQJ (DVWHUQ (XURSHDQ DQG &HQWUDO $VLDQ PDUNHWV DW WKH VDPH WLPH 7KH WUDQVDFWLRQ LV H[SHFWHG WR LQ FUHDVH 3HSVL&RnV DQQXDO JOREDO UHYHQXHV IURP IRRG DQG GULQN SURGXFWV IURP DURXQG ELOOLRQ WR DSSUR[LPDWHO\ ELOOLRQ :KLOH WKH GHDO LV SHQGLQJ JRY HUQPHQW DSSURYDOV 3HSVL&R LV H[SHFWHG WR REWDLQ :%'nV UHPDLQLQJ VKDUHV WRR 1DWDO\D %HO\DYVND\D 6HQLRU ,QYHV

WRU 5HODWLRQV 0DQDJHU DW :%' WROG ,QYHVWRU JH LQ DQ H PDLOHG LQWHUYLHZ WKDW it is too early to comment about speciямБ F FKDQJHV IRUHFDVW LQ WKH GHDO тАЬIt is going to be a signiямБ FDQW DFTXLVL WLRQ IRU ERWK FRPSDQLHV DQG WKH 5XVVLDQ PDUNHW 7KH LQWHJUDWLRQ SURFHVV ZLOO WDNH VRPH WLPH LQGHHG p %HO\DYVND\D VDLG 6KH SRLQWHG RXW WKDW WKH VWUDWHJ\ JRDOV DQG WDVNV IRU :%' EUDQGV DQG SURGXFWV DV ZHOO DV DQ\ QHZ SURGXFW ODXQFKHV ZLOO EH GHYHORSHG WRJHWKHU ZLWK 3HSVL&R DGGLQJ WKDW LW LV DOVR WRR VRRQ WR WDON DERXW UHJLRQDO SUHVHQFH DQG SDUWLFXODU WDUJHWV $FFRUGLQJ WR %HO\DYVND\D :%' H[SHFWV WR UHFRXS oD ORW RI EHQHILWVp IURP WKH GHDO o3HSVL&R KDV RQH RI WKH PRVW RXWVWDQGLQJ GLVWULEXWLRQ V\VWHPV LQ WKH ZRUOG ZKLFK FRXOG KHOS RSWLPL]H DQG DFFHOHUDWH WKH SURFHVV RI GHOLYHULQJ VWUDWHJLFDOO\ LPSRUWDQW GDLU\ DQG EDE\ IRRG SURGXFWV DV ZHOO DV RXU EHYHUDJHV WR DOO DUHDV RI 5XVVLD DQG WKH &,6 p WBD ofямБ FLDO $OH[DQGHU .RVWLNRY 'LUHFWRU RI &RPPXQLFDWLRQV DW 3HSVL&R 5XVVLDnV 3UHVV 6HUYLFH UH LWHUDWHG LQ DQ H PDLOHG FRPPHQW WR ,QYHVWRU JH WKDW LW LV oWRR HDUO\p WR PDNH VWDWHPHQWV FRQFHUQ LQJ DQ\ H[SHFWHG GHYHORSPHQWV $FFRUG LQJ WR KLP WKHVH LVVXHV ZLOO EH GLVFXVVHG when the deal is ямБ QDOLVHG DQG LQWHJUDWLRQ SURSHUO\ EHJLQV o%XW LQ JHQHUDO ZH PD\ VD\ WKDW ZH DUH UHDOO\ LPSUHVVHG ZLWK ZKDW :%' KDV DFKLHYHG VR WKHUHnV QR UHDVRQ WR PDNH DQ\ PDMRU FKDQJHV LQ SURGXFWV HWF p .RVWLNRY DGGHG )RXQGHG LQ E\ *HRU JLDQ ERUQ 5XVVLDQ EXVLQHVVPDQ 'DYLG <DNREDVK YLOL :%' RZQV DQ HVWLPDWHG PDQX IDFWXULQJ IDFLOLWLHV LQ 5XVVLD 8NUDLQH .\UJ\]VWDQ 8]EHNLVWDQ DQG *HRU JLD ZLWK RYHU HPSOR\HHV ,Q WBD became the ямБ UVW 5XVVLDQ GDLU\ SURGXFHU WR EH DSSURYHG IRU H[SRUWLQJ SURGXFWV WR WKH (XURSHDQ 8QLRQ

,QYHVWRU JH

5RPDQ 5\EDNRY WKH JHQHUDO PDQDJHU RI :LPP %LOO 'DQQ *HRUJLD

-XLFH &DQQHG )UXLW DQG 0HDW 8QWDSSHG 3RWHQWLDO LQ $JULFXOWXUH )(% 0$5

,QYHVWRU JH

0$,$ (',/$6+9,/,

'

HVSLWH JURZWK LQ WKH ORFDO IRRG SURFHVVLQJ LQGXVWU\ *HRUJLDQV VWLOO GHSHQG RQ LPSRUWHG IRRG r D VLJQ VRPH LQGXVWU\ LQVLGHUV VD\ WKDW WKH PDUNHW KDV KXJH XQGHYHORSHG SRWHQWLDO $FFRUGLQJ WR *HR6WDW ZKLFK SUR vides ofямБ FLDO VWDWLVWLFV LQ *HRU JLD WKH WXUQRYHU LQ IRRG SURFHVVLQJ LQGXVWU\ LQFOXGHV MXLFHV DQG FLJDUHWWHV LQ LQFUHDVHG WR PLOOLRQ r XS IURP IURP $583 million in 2008. In 2004 the ямБ JXUH VWRRG DW WKRXVDQG 7KH JURZWK IRU HDFK VHFWRU LV REYL RXV EHWZHHQ DQG WKH PHDW SURGXFWLRQ LQGXVWU\ JUHZ WR WKRX VDQG IURP MXVW WKRXVDQG WKH GLDU\ LQGXVWU\ WR WKRXVDQG IURP WKRXVDQG IUXLW DQG MXLFH SURFHVVLQJ r WR WKRXVDQG IURP WKRXVDQG o7KH >IRRG SURFHVVLQJ@ VHFWRU REYL RXVO\ KDV D YHU\ ELJ XQWDSSHG SRWHQWLDO p 1LQR (YJHQLG]H H[HFXWLYH GLUHFWRU DW (FRQRPLF 3ROLF\ 5HVHDUFK &HQWHU (35& D ORFDO WKLQN WDQN IRFXVHG RQ WKH HFRQRPLF VWUDWHJ\ RI *HRUJLD FRP PHQWHG WR ,QYHVWRU JH $FFRUGLQJ WR

$OH[DQGHU &KRPDNKDVKYLOL GLUHFWRU RI SURGXFWLRQ DW :LPP %LOO 'DQQ *HRUJLD

KHU WKH VKDUH RI WKLV VHFWRU LQ *'3 LV SHUFHQW ZKLOH SULPDU\ DJULFXOWXUH KROGV SHUFHQW RI *'3 $ IUHVK VHFWRU IRU )', ,Q -XQH WKH :RUOG %DQN ,Q WHUQDWLRQDO )LQDQFH &RUSRUDWLRQ DQG WKH 0XOWLODWHUDO ,QYHVWPHQW *XDUDQWHH $JHQF\ FRQGXFWHG D MRLQW VWXG\ ZLWK WKH

:LPP %LOO 'DQQ *HRUJLD $ SURILOH ,QYHVWRU JH LQWHUYLHZHG 5RPDQ 5\EDNRY WKH JHQHUDO PDQDJHU RI :LPP %LOO 'DQQ *HRUJLD :%' DERXW WKH GDLU\ IRRG SURFHVVLQJ LQGXVWU\ :%'nV *HRUJLDQ SODQW WKH RQO\ RQH RI LWV NLQG LQ WKH HQWLUH &DXFDVXV UHJLRQ is producing milk, keямБ U PDWVRQL DQG sour cream - all under the SoямВ LV 1REDWL EUDQG JLIWV IURP WKH FRXQWU\ 7KH SODQW

)(% 0$5

LV ORFDWHG LQ 3ROLFKDOD RQ WKH RXWVNLUWV RI 7ELOLVL :%' HQWHUHG *HRU JLD LQ DF TXLULQJ *HRU JLDQ 3URGXFWV RQH RI WKH OHDGLQJ GDLU\ SURGXFHUV LQ *HRUJLD ZKLFK

DLP WR LGHQWLI\ WKH PRVW SURPLVLQJ PDQX IDFWXULQJ VHFWRUV LQ *HRUJLD DQG SURYLGH UHFRPPHQGDWLRQV WR WKH JRYHUQPHQW 7KH VWXG\ *HRU JLD 6HFWRU &RP SHWLWLYHQHVV 2YHUYLHZ UDQNHG WKH IUXLW SURFHVVLQJ DV RQH RI WKH PRVW SURPLV LQJ VHFWRUV IRU DWWUDFWLQJ IRUHLJQ GLUHFW LQYHVWPHQW )', 9HJHWDEOH SURFHVVLQJ ZLQH SURGXFWLRQ DQG WKH KD]HOQXW LQGXV

ZDV VXEVHTXHQWO\ UHQDPHG :LPP %LOO 'DQQ *HRU JLD $IWHU WZR \HDUV RI UHQRYDWLQJ DQG UH HTXLSSLQJ r DQG DQ HVWLPDWHG PLOOLRQ LQYHVWPHQW WKH SODQW RSHQHG LQ 6HSWHPEHU RI ,W FDQ QRZ UXQ DW D FDSDFLW\ RI WRQV SHU GD\ DQG HPSOR\V SHRSOH 5RPDQ 5\EDNRY *HQHUDO 0DQDJHU RI :%' &DXFDVXV ZKR RYHUVHHV WKH FRPSDQ\nV SODQW LQ 7ELOLVL VD\V KLV FRP pany is тАЬa leader in its ямБ HOG p

,QYHVWRU JH

WU\ DOVR VFRUHG KLJK PDUNV 1RQD ']QHODG]H WKH PDUNHWLQJ PDQDJHU RI 1LNRUD D ODUJH SOD\HU LQ WKH *HRUJLDQ PHDW SURFHVVLQJ LQGXVWU\ DOVR EHOLHYHV WKDW IRRG SURFHVVLQJ LQGXVWU\ KDV DQ DWWUDFWLYH IXWXUH LQ *HRUJLD EDVLQJ KHU SUHGLFWLRQ RQ WKH oDWWLWXGHp RI ORFDO FRQVXPHUV WRZDUGV WKH *HRU JLDQ PDGH SURGXFWV

o5HVHDUFK VKRZV WKDW RXU SHRSOH JLYH SULRULW\ WR ORFDO SURGXFWV 7KLV EXVLQHVV LV JDLQLQJ G\QDPLVP LQ *HRU JLD DQG LV JHWWLQJ FORVHU WR LQWHUQDWLRQDO VWDQGDUGV HDFK GD\ p VKH VDLG LQ WKH LQWHUYLHZ ZLWK ,QYHVWRU JH $SDUW IURP 1LNRUD D FRXSOH RI FRP SDQLHV ZLWK ORFDO DQG IRUHLJQ LQYHVWPHQW DUH SURFHVVLQJ DQG SDFNDJLQJ PHDW

GDLU\ SURGXFWV DQG FDQQHG SURGXFWV IRU WKH ORFDO PDUNHW LQFOXGLQJ *07 6DQWH (FRIRRGV DQG ,ROL $V RI WKH )', LQ DJULFXOWXUH ZDV DSSUR[LPDWHO\ PLOOLRQ MXVW SHUFHQW RI IRUHLJQ LQYHVWPHQW +LSS WKH *HUPDQ JLDQW RQ WKH JOREDO EDE\ IRRG PDUNHW LQYHVWHG RYHU â&#x201A;¬8 million since 2007 to produce apple FRQFHQWUDWHV DQG VXSSO\ RYHUVHDV FOLHQWV 7KH FRPSDQ\ KDG GHFLGHG WR FRPH WR *HRUJLD GXH WR WKH ORZ FRVW RI UDZ PD WHULDOV DQG WKH DYDLODELOLW\ RI ZLOG IUXLWV $FFRUGLQJ WR $UFKLO =KYDQLD JHQHUDO PDQDJHU RI +LSS *HRU JLD RI WKH FRQFHQWUDWHV DUH H[SRUWHG 7KH H[SRUW GHVWLQDWLRQV LQFOXGH *HUPDQ\ 7XUNH\ $XVWULD 6ZLW]HUODQG DQG $UPHQLD 7DNLQJ LQWR DFFRXQW WKH SRRU KDUYHVW RI WKH \HDU RI ZDV QRW YHU\ IDYRUDEOH IRU +LSS *HRUJLD o7KH FDSDF LW\ RI RXU SODQW DOORZV XV WR SXUFKDVH RI *HRUJLDnV TXDOLW\ DSSOH KDUYHVW p =KYDQLD SRLQWHG RXW %XVLQHVV KDV EHHQ LPSURYLQJ EXW =K YDQLD ZDUQHG WKDW VXFFHVV LV VWLOO VHYHUDO \HDUV DZD\ o7KH EDG >WKLQJ LQ WKLV LQ GXVWU\@ LV WKDW ZH DUH HQWLUHO\ GHSHQGHQW RQ QDWXUH p KH DGGHG

o:H DUH JURZLQJ VXEVWDQWLDOO\ p 5\EDNRY VDLG o>,Q $UPHQLD DQG $]HU EDLMDQ@ LQ ZH JUHZ PRUH WKDQ WZLFH ERWK LQ YROXPH YDOXH LQ FRPSDULVRQ ZLWK e7KH VFRSH RI RXU RSHUDWLRQV LQ *HRUJLD LV JURZLQJ HYHQ IDVWHU p $FFRUGLQJ WR 5\EDNRY LQYHVWPHQW LQ *HRUJLDQ GDLU\ IDUPV ZLOO KHOS WKH GDLU\ IRRG SURFHVVLQJ VHFWRU JURZ :%' LQ *HRUJLD SURGXFHV LWV JRRGV ZLWK QDWXUDO *HRUJLDQ PLON DQG r ZLWK H[SDQVLRQ LQ

PLQG r LWV GHPDQG LV OLNHO\ WR LQFUHDVH $OWKRXJK 5\EDNRY GLG QRW JR LQWR GHWDLOV KH VDLG WKDW LQ WKH IXWXUH :%' *HRUJLD SODQV WR LQWURGXFH QHZ SURGXFWV DGRSWHG WR *HRUJLDQ WDVWHV DQG WKH ORFDO PDUNHW o<RX VKRXOG GHYHORS SURGXFWV DF FRUGLQJ WR ORFDO WDVWHV )RU LQVWDQFH VRXU FUHDP LQ *HRUJLD LV WKLFNHU LQ 5XVVLD LWnV WKLQQHU 7KHVH SURGXFWV ZHUH GHYHORSHG VSHFLDOO\ IRU WKH *HRUJLDQ PDUNHW p

7KH SUHIHUHQFHV RI ORFDOV DUH D KLJK SULRULW\ ZKHQ LW FRPHV WR WKH QDPH DV ZHOO $W WKH YHU\ EHJLQQLQJ ZKHQ :%' ERXJKW WKH SODQW LQ 7ELOLVL WKHLU SURGXFWV RQ RQH VLGH ZHUH EUDQGHG DV 'RPLN Y'HUHYQH RQ WKH DQRWKHU r DV Soï¬&#x201A; LV 1REDWL o1RZ ZH DUH PRYLQJ HQWLUHO\ WR wards the Soï¬&#x201A; LV 1REDWL >QDPH@ EHFDXVH WKH SURGXFW LV SURGXFHG IRU ORFDO SHRSOH p 5\EDNRY DGGHG

)(% 0$5

,QYHVWRU JH

&$/75,'(5 $'9,6256

+RWHO ,QGXVWU\ $QDO\VLV

,QGXVWU\ $QDO\VLV ZDV SHUIRUPHG IRU WKH *HRUJLDQ 1DWLRQDO 7RXULVP $JHQF\ DQG WKH 0LQLVWU\ RI (FRQRP\ 6XVWDLQDEOH 'HYHORSPHQW DV SDUW RI WKHLU +RWHO ,QYHVWPHQW ,QLWLDWLYH 7KLV LV WKH H[HFXWLYH VXPPDU\

)(% 0$5

&XUUHQW 3HUIRUPDQFH )URP +RWHO ,QGXVWU\ UHYH QXHV JUHZ DW DQ DQQXDOL]HG UDWH RI JURZLQJ E\ LQ D WKUHH \HDU SH ULRG IURP *(/ PLOOLRQ LQ WR *(/ PLOOLRQ LQ 'HVSLWH WKH

HIIHFWV RI WKH JOREDO LQWHUQDWLRQDO FULVLV in 2009 and the brief political conямВ LFW ZLWK 5XVVLD LQ $XJXVW WKH +RWHO ,QGXVWU\ JUHZ E\ LQ DFFRUG LQJ WR GDWD IURP WKH *HRU JLDQ 5HYHQXH Service. From 2007-2009, ямБ [HG DVVHWV

,QYHVWRU JH

+27(/ ,1'8675< $1$/<6,6 '(&(0%(5

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their investment in ямБ [HG DVVHWV ,Q WKH VHFRQG KDOI RI WKH HIIHFWV of the global ямБ QDQFLDO FULVLV EHJDQ WR LP SDFW *HRUJLDnV HFRQRP\ 7KH FUHGLW FULVLV DQG WKH UHDO HVWDWH FULVLV ERWK LPSDFWHG *HRUJLDnV GRPHVWLF HFRQRP\ QHJDWLYHO\ UHVXOWLQJ LQ GHFUHDVHG LQGXVWULDO SURGXF WLRQ DQG LQFUHDVHG XQHPSOR\PHQW ,Q $XJXVW WKHUH ZDV D SROLWLFDO FRQ ямВ LFW ZLWK 5XVVLD WKDW ODVWHG IRU VHYHUDO GD\V :LWK WKH DVVLVWDQFH RI *HRU JLDnV international partners, the conямВ LFW HQGHG DQG *HRUJLDnV JRYHUQPHQW KDV EHHQ DEOH WR VWDELOL]H WKH SROLWLFDO HQYLURQPHQW IRU EXVLQHVVHV DQG LQYHVWRUV 2FFXSDQF\ UDWHV GXULQJ ZHUH YHU\ ORZ 0DQ\ KRWHOV H[SHULHQFHG RFFXSDQF\ UDWHV DURXQG ZKLOH VRPH ORZ HQG KRWHOV VKXW GRZQ RSHUDWLRQV IRU VHYHUDO PRQWKV XQWLO GHPDQG EHJDQ WR SLFN XS LQ WKH VHFRQG KDOI RI WKH \HDU The ямБ UVW KDOI RI ZDV FKDUDF WHUL]HG E\ VORZ VWDEOH JURZWK DV PRUH tourists, business travelers and ofямБ FLDO

JRYHUQPHQW WUDYHOHUV ZHUH DUULYLQJ LQ *HRUJLD ,Q WKH VHFRQG KDOI RI KRWHO RSHUDWRUV UHSRUWHG DQ LQFUHDVH RI XS WR LQ WKH RFFXSDQF\ UDWHV WKH\ H[SHULHQFHG GXULQJ 7UDGLWLRQDOO\ D ORZ VHDVRQ PRQWK IRU KRWHOV LQ 7ELOLVL DQG WKH UHJLRQDO FHQWHUV 'HFHPEHU KDV SURGXFHG RFFXSDQF\ UDWHV DURXQG ZKLOH KRWHOV LQ UXUDO DUHDV have signiямБ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sands of ofямБ FLDO JRYHUQPHQW WUDYHOHUV DUULYLQJ LQ *HRU JLD HYHU\ PRQWK EXW DOVR IRU WKH FRQIHUHQFLQJ DQG PHHWLQJ IDFLOLWLHV SURYLGHG E\ WKH +RWHO ,QGXVWU\ )RU H[DPSOH RQH RI WKH ODU JHVW IRUHLJQ HPEDVVLHV SUHVHQW LQ *HRUJLD RXW RI

IRUHLJQ HPEDVVLHV UHTXLUHG DQG 13,323 room-nights in hotels for ofямБ FLDO JRYHUQPHQW WUDYHOHUV LQ DQG UHVSHFWLYHO\, and hosted 12-15 ofямБ FLDO JRYHUQPHQW FRQIHUHQFHV LQ KRWHOV SHU \HDU $FFRUGLQJ WR *17 $ VXUYH\V RI DOO LQWHUQDWLRQDO WUDYHOHUV WR *HRU JLD DUULYHG LQ *HRUJLD IRU oEXVLQHVV RU SUR IHVVLRQDOp SXUSRVHV 7KLV DPRXQWV WR DS SUR[LPDWHO\ EXVLQHVV WUDYHOHUV DUULYLQJ LQ *HRUJLD LQ PRUH WKDQ WUDYHOHUV SHU PRQWK DQG PRUH WKDQ DERXW EXVLQHVV WUDYHOHUV SHU PRQWK LQ ,QGXVWU\ 2XWORRN )RU WKH VKRUW WHUP GHPDQG IRU KRWHO URRPV ZLOO JURZ DW D VWHDG\ SDFH LQ DQG WKLV JURZWK UDWH ZLOO LQFUHDVH VWHDGLO\ DV WKH ZRUOG UHFRYHUV IURP WKH global ямБ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

LQ 1RYHPEHU 7KLV HYHQW ZLOO KRVW DWKOHWHV IURP WKH PHPEHU FRXQWULHV RI WKH DVVRFLDWLRQ RI (XURSHDQ 2O\PSLF &RPPLWWHHV )RU WKLV HYHQW 7ELOLVL LV H[SHFWHG WR KRVW PRUH WKDQ YLVLWRUV RI ZKLFK DSSUR[LPDWHO\ YLVLWRUV ZLOO UHTXLUH VWDU KRWHO DFFRPPRGDWLRQV DQG DERXW ZLOO UHTXLUH VWDU KRWHO )(% 0$5

,QYHVWRU JH

&$/75,'(5 $'9,6256

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will not be sufямБ FLHQW WR VHUYH PDUNHW GH PDQG DQG QHZ KRWHO LQYHVWPHQWV ZLOO EH UHTXLUHG WR VDWLVI\ WKH GHPDQG &XUUHQW 7UHQGV LQ +RWHOV DQG 7RXULVP ,Q *HRUJLD KRWHOV DUH H[SHULHQFLQJ WUHPHQGRXV FKDQJH LQFOXGLQJ D VKLIW LQ FRQVXPHU H[SHFWDWLRQV IURP JXHVWV ,Q UHFHQW \HDUV PRVW LQWHUQDWLRQDO WUDYHOHUV IURP WKH &,6 RI YLVLWRUV ZHUH OLPLWHG E\ EXGJHW UHVWULFWLRQ PRUH WKDQ WKH\ DUH FXUUHQWO\ 7RGD\ WUDYHOHUV IRFXV PRUH RQ oYDOXH IRU PRQH\p SULQFLSOHV ZKHQ FKRRVLQJ DFFRPPRGDWLRQV 7KLV VKLIW KDV FDXVHG PDQ\ PLG UDQJH KRWHOV WR EHJLQ UHQRYDWLQJ WKHLU IDFLOLWLHV DQG LQWURGXFLQJ DGGLWLRQDO VHUYLFHV VXFK DV DGGLQJ FRQIHUHQFH URRPV EXVLQHVV FHQ ters, ямБ WQHVV FHQWHUV FDIHV DQG UHVWDXUDQWV &XUUHQWO\ SULFHV IRU KRWHOV LQ *HRUJLD DUH JHQHUDOO\ QRQ QHJRWLDEOH FRPSDUHG WR KRWHOV JOREDOO\ ZKR RI IHU GLVFRXQWHG UDWHV RQ D GDLO\ EDVLV WKURXJK RQOLQH VDOHV YHQXHV VXFK DV 3ULFHOLQH DQG ([SHGLD $OVR ZKHQ FRPSDULQJ QLJKWO\ UDWHV LQ )(% 0$5

$Q LQFUHDVH LQ WRXULVWV KDV KHOSHG WKH LQGXVWU\ UHFRYHU

*HRUJLD WR VLPLODU KRWHOV LQ (XURSH LW LV FOHDU WKDW SULFHV LQ *HRUJLD DUH JHQHUDOO\ YHU\ KLJK GHVSLWH KHDOWK\ RFFXSDQF\ UDWHV These prices reямВ HFW QRW RQO\ WKH KLJK GHPDQG IRU KLJK TXDOLW\ KRWHO DFFRP PRGDWLRQV LQ *HRUJLD EXW DOVR WKH DELOLW\ RI WKH PDUNHW WR DEVRUE DGGLWLRQDO KRWHO supply with signiямБ FDQW URRP IRU UDWHV WR decrease while still remaining proямБ WDEOH *HRUJLDQ KRWHO LQYHVWRUV KDYH EHJXQ WR DWWUDFW JOREDO IUDQFKLVLQJ RSHUDWRUV LQ WKH ODVW WZR \HDUV ,Q WKHUH ZHUH ямБ YH IUDQFKLVHV RSHUDWLQJ LQ *HRUJLD DQG DQRWKHU EHJDQ LQ 2YHU WKH QH[W \HDUV DQRWKHU JOREDO EUDQGV PD\

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

,QYHVWRU JH

+27(/ ,1'8675< $1$/<6,6 '(&(0%(5

GDWLRQ DQG WRXULVW DFWLYLWLHV 7KH IXUWKHU GHYHORSPHQW RI &XOWXUDO 7RXULVP DQG (FRWRXULVP FDQ DLG LQ H[SDQGLQJ SHQ HWUDWLRQ LQWR WKHVH PDUNHWV LQ :HVWHUQ DQG (DVWHUQ (XURSH /LNHZLVH WKH WDUJHW PDUNHW IRU FROOHJH VWXGHQWV DQG WKHLU DJH JURXS FDQ EH UHDFKHG E\ LQFUHDVLQJ WKH GHYHORSPHQW RI $GYHQWXUH 7RXULVP DFWLYLWLHV VXFK DV ND\DNLQJ UDIWLQJ DQG SDUDJOLGLQJ 7RXULVW H[SHQGLWXUHV LQ *HRUJLD KDYH EHHQ LQFUHDVLQJ RYHU WKH ODVW GHFDGH ZLWK GLIIHUHQFHV DULVLQJ EHWZHHQ WKH YDULRXV VHJPHQWV RI LQWHUQDWLRQDO WUDYHOHUV )URP WKH RYHUDOO SHUVSHFWLYH WKH DYHUDJH WRWDO H[SHQGLWXUH RI WRXULVWV LQ *HRU JLD LV

86' 2I WKHVH WUDYHOHUV OHLVXUH WUDYHOHUV VSHQG 86' 86' GD\ EXVLQHVV DQG SURIHVVLRQDO WUDYHOHUV VSHQG 86' 86' GD\ DQG WKRVH YLVLWLQJ IULHQGV DQG UHODWLYHV VSHQG 86' 86' GD\

2QH LPSRUWDQW WUHQG WKDW KDV JUHDW SRWHQWLDO WR JURZ LV WKH LQERXQG WRXU LVP RSHUDWRUV $FFRUGLQJ WR WKH *17$ RQO\ RI DOO WRXULVWV YLVLWHG *HRUJLD WKURXJK DQ oRUJDQL]HG WRXULVP SDFNDJHp %\ SDUWQHULQJ ZLWK LQWHUQDWLRQDO SDUWQHUV LQ WKH WRXULVP LQGXVWU\ *HRUJLDQ RSHUD WRUV FDQ LQFUHDVH WKH QXPEHU RI RUJDQL]HG WRXULVP DFWLYLWLHV DQG IXUWKHU VWLPXODWH GHPDQG IRU KRWHO DFFRPPRGDWLRQV

&XUUHQW ,QYHVWPHQW 2SSRUWXQLWLHV ,I UHFHQW UDWHV RI JURZWK LQ LQWHUQD WLRQDO WUDYHOHUV FRQWLQXH WKH VXSSO\ RI KRWHOV LQ *HRU gia will not be sufямБ FLHQW WR VDWLVI\ PDUNHW GHPDQG DQG QHZ KRWHO LQYHVWPHQWV ZLOO EH UHTXLUHG WR VXVWDLQ GHPDQG HVSHFLDOO\ DFFRUGLQJ WR WKH IROORZLQJ 7KHUH LV GHPDQG LQ HYHU\ +RWHO VHJ PHQWV IRU QHZ LQYHVWPHQW DFFRUGLQJ WR LQWHUQDWLRQDO VWDQGDUGV HVSHFLDOO\ LQ WKH DQG 6WDU VHJPHQWV $FFRUGLQJ WR +RWHO 7\SH WKHUH LV VLJ niямБ FDQW GHPDQG IRU 7UDGLWLRQDO +RWHOV %RXWLTXH 'HVLJQ /HG +RWHOV 5HVRUW &RPSOH[HV %XGJHW &RQFHSW +RWHOV DQG $SDUWPHQW 6W\OH +RWHOV Opportunities include new GreenямБ HOG FRQVWUXFWLRQ SURMHFWV DV ZHOO DV %URZQ ямБ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velopment consulting ямБ UP EDVHG LQ 7ELOLVL *HRUJLD SURYLGLQJ PDQDJHPHQW FRQVXOW LQJ LQYHVWPHQW IDFLOLWDWLRQ DQG PDUNHW LQWHOOLJHQFH VHUYLFHV WR FRPSDQLHV JRYHUQ PHQW DJHQFLHV DQG GHYHORSPHQW SDUWQHUV LQ *HRUJLD ZZZ FDOWULGHUDGYLVRUV FRP )(% 0$5

,QYHVWRU JH

%XLOGLQJ %HWWHU %XVLQHVV *HRUJLDQ EXVLQHVV OHDGHUV DUH XVLQJ WKH WKHRU\ RI FRUSRUDWH VRFLDO UHVSRQVLELOLW\ WR LPSURYH SURGXFW TXDOLW\ DQG EUDQG SUHVHQFH

1,&. &/$<721

&

RUSRUDWH VRFLDO UHVSRQVLELOLW\ &65 LV DQ DPRUSKRXV WHUP EXW VHYHUDO RU JDQL]DWLRQV DQG EXVLQHVVHV DUH QRZ WU\LQJ WR PDNH LW D FRQFUHWH UHDOLW\ LQ *HRUJLD $FFRUGLQJ WR 0LFKDHO &RZJLOO SUHVLGHQW RI WKH *HRU JLDQ $PHULFDQ 8QLYHUVLW\ &65 LV D EXVLQHVV PHQWDOLW\ RI VHOI UHJXODWLRQ RQ WKUHH OHYHOV r HFR QRPLF OHJDO HWKLFDO DQG SKLODQWKURSLF In other words, being proямБ WDEOH ZKLOH )(% 0$5

EHLQJ IDLU WR FOLHQWV DQG HPSOR\HHV DQG VSUHDGLQJ WKH ZHDOWK &RZJLOO D YLFH SUHVLGHQW RQ WKH $P &KDP *HRUJLD ERDUG RI GLUHFWRUV LV DOVR D PHPEHU RI WKH VWHHULQJ FRPPLWWHH RI WKH *HRUJLD FKDSWHU RI WKH *OREDO &RP SDFW D ZRUOGZLGH JURXSLQJ RI 81 DJHQ FLHV SULYDWH EXVLQHVVHV DQG FLYLO VRFLHW\ JURXSV SURPRWLQJ UHVSRQVLEOH FRUSRUDWH FLWL]HQVKLS VRPHWKLQJ &RZJLOO VDLG LV RIWHQ ODFNLQJ LQ *HRUJLD o:KHQ , WHDFK LWn V DOO LQ WKUHHV 7KH PRVW VXFFHVVIXO FRPSDQLHV WUHDW HPSOR\HHV FOLHQWV DQG RZQHUV DOO ZLWK VRPH HTXDO SULRULW\ p KH VDLG o*HRU JLD KDV EHHQ NQRZQ IRU SODFLQJWKH HPSKDVLV RQ RZQHUV UDWKHU WKDQ FOLHQWV ZLWK VWDII

HYHQ IXUWKHU GRZQ WKH OLVW p 7KH (XUDVLD )RXQGDWLRQ KDV VSRQ sored CSR classes at ямБ YH *HRUJLDQ XQL YHUVLWLHV DQG *OREDO &RPSDFW *HRUJLD LV FXUUHQWO\ IRFXVHG RQ HGXFDWLQJ *HRUJLDQ companies on the beneямБ WV RI VXFK SROL FLHV DZDUGV DUH SODQQHG IRU FRUSRUDWLRQV WKDW WDNH VXFK DGYLFH WR KHDUW $P&KDP *HRUJLD LV KRVWLQJ WKH *OREDO &RPSDFW *HRUJLD 1HWZRUN WKLV \HDU %XVLQHVV UHWXUQV RQ VRFLDO LQYHVWPHQW 2QH ORFDO FRUSRUDWLRQ WKDW KDV WDNHQ WKH OHDG RQ &65 GHYHORSPHQW LV WKH JDV VWDWLRQ FKDLQ :LVVRO :LVVRO &(2 6DP VRQ 3NKDNDG]H LV WKH FXUUHQW FKDLUPDQ RI *OREDO &RPSDFW *HRUJLD DQG LQ DGGLWLRQ WR LQLWLDWLYHV WR LPSURYH VHUYLFH TXDOLW\ and employee beneямБ WV :LVVRO JLYHV PLO OLRQV RI ODUL WR FKDULWDEOH RU JDQL]DWLRQV XQGHU LWV &65 FDPSDLJQ ZLWK WKH ODUJHVW VKDUH RI LWV IXQGV JRLQJ WR GHYHORSLQJ *HRUJLDnV VSRUWV LQIUDVWUXFWXUH

,QYHVWRU JH

7KH FRPSDQ\ KDV EXLOW IRXU VSRUWV FRPSOH[HV LQ WKH 7ELOLVL DUHD FRPSULVLQJ dozens of ямБ HOGV DQG WUDFNV IRU PXOWLSOH VSRUWV ,Q :LVVRO ERXJKW 7ELOLVL UXJE\ FOXE 2FKHEL DQG IRRWEDOO FOXE 7RUSHGR .XWDLVL SOHGJLQJ DQ DQQXDO LQ YHVWPHQW RI PLOOLRQ *(/ PLOOLRQ

SHU \HDU IRU FRQWLQXHG GHYHORSPHQW RI LWV IDFLOLWLHV 5XVXGDQ.ELODVKYLOL 35 DQG &65 PDQDJHU VDLG WKDW :LVVRO YLHZV WKLV DV D oORQJ WHUP VRFLDO LQYHVWPHQW WKDW will eventually have business beneямБ WV p ,Q IDFW WKH LGHD WR LQYHVW LQ VSRUWV ZDV ERUQ RXW RI :LVVROn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take тАЬshortcuts,тАЭ signiямБ FDQW SURJUHVV KDV EHHQ PDGH o7KH VLWXDWLRQ KDV LPSURYHG GUDPDWLFDOO\ EXW LI EHIRUH ZH ZHUH DW OHYHO ]HUR ZH DUH QRZ DW OHYHO DQG ZH QHHG WR EH DW p KH VDLG *HRUgian government ofямБ FLDOV LQ WKH SDVW ZRUULHG SXEOLFO\ WKDW LPSOHPHQWLQJ

VWULFW IRRG VDIHW\ PHDVXUHV FRXOG IRUFH XS WR SHUFHQW RI *HRU JLDnV SURGXFHUV WR IDLO ,Q 3RODQG D VLPLODU WUDQVLWLRQ WRRN SODFH LQ WKH HDUO\ V DQG GHVSLWH D (8 LQYHVWPHQW RI ELOOLRQ HXUR LQ HDVLQJ SULYDWH SURGXFHUVn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nW PDNH WKHP DQ\ ULFKHU KH VDLG o%HIRUH LW ZDV WKRXJKW WKDW WKRVH FRPSDQLHV WKDW ZHUH VRFLDOO\ UHVSRQVLEOH GR EHWWHU p KH VDLG o7KDWnV QRW WUXH 7KH VWDWLVWLFV VKRZ WKDW WKH\ GRQnW GR EHWWHU EXW WKH\ GRQnW GR ZRUVH DQG LI WKH\ GRQn W GR ZRUVH WKHQ ZK\ VKRXOGQnW \RX EH VRFLDOO\ UHVSRQVLEOH" )(% 0$5

,QYHVWRU JH

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

&65 $ *XLGH WR *RRG %XVLQHVV

&

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

beneямБ W WR \RXU EXVLQHVV VWDQGLQJ RU UHSXWDWLRQ ,Q $P&KDP *HRUJLD WRRN UHVSRQVLELOLW\ IRU WKH *OREDO &RPSDFW *HRUJLD 1HWZRUN 6HFUHWDULDW 7KH 8QLWHG 1DWLRQV *OREDO &RPSDFW LV WKH ODUJHVW FRUSRUDWH VRFLDO UHVSRQVLELOLW\ &65 YROXQWDU\ LQLWLDWLYH LQ WKH ZRUOG HQFRPSDVVLQJ DERXW PHPEHUV LQ FRXQWULHV 7KH *OREDO &RPSDFW LV QRW OHJDOO\ ELQGLQJ DV LW LV D SXUHO\ YROXQWDU\ LQLWLDWLYH ,Q RWKHU ZRUGV WKH 81 *OREDO &RPSDFW IRFXVHG RQ OHDUQ LQJ GLDORJXH DQG SDUWQHUVKLSV LV PRUH OLNH D JXLGH GRJ WKDQ D ZDWFK GRJ

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

,QYHVWRU JH

&RXQWHUIHLW 3URGXFWV

&DOOV IRU *UHDWHU 5HJXODWLRQ E\ 0RWRU 2LO ,PSRUWHUV LQ *HRUJLD

)(% 0$5

,QYHVWRU JH

%XVLQHVVHV LPSRUWLQJ LQWHUQDWLRQDO EUDQGV RI PRWRU RLOV DQG OXEULFDQWV KDYH FDOOHG RQ WKH JRYHUQPHQW WR EH PRUH DFWLYH DW FRQWUROOLQJ WKH TXDOLW\ RI SURGXFWV RQ WKH PDUNHW

1,12 3$7685,$

/

DUJH RLO SURGXFW LPSRUWHUV FRPSODLQ WKDW OHQLHQW UHJXOD WLRQV LQ *HRUJLD KDYH DOORZHG for a steady ямВ RZ RI IDNH PRWRU RLO DQG lubricants тАУ which are cutting proямБ WV RI WKRVH VHOOLQJ JHQXLQH SURGXFWV HURGLQJ brand conямБ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r QRW ORVW UHYHQXH r LV ZKDW PRWLYDWHV WKHLU EDWWOH IRU PRUH TXDOLW\ FRQWURO LQ WKH PDUNHW SODFH ,Q 6HSWHPEHU PRUH WKDQ FRP SDQLHV DSSHDOHG WR WKH JRYHUQPHQW IRU KHOS UHTXHVWLQJ E\ OHWWHU WKDW WKH 0LQLVWU\ RI )LQDQFH RI *HRUJLD 02)

UHVROYH WKH LVVXH RI FRXQWHUIHLW JRRGV VROG LQ *HRUJLD %XW *LRUJL 7VNKDNDLD WKH KHDG RI WKH PLQLVWU\nV UHYHQXH GHSDUWPHQW WROG ,QYHVWRU JH WKDW LW LV XS WR WKH FRP SDQLHV r QRW WKH VWDWH r WR DGGUHVV WKH SUREOHP тАЬIf they think that falsiямБ FDWLRQ

)(% 0$5

GDPDJHV VRPHRQH WKH FRPSDQLHV KDYH WR SURYLGH HYLGHQFH WR WKH >PLQLVWU\@ ,QYHVWLJDWLRQ 6HUYLFH >LQFOXGLQJ@ D ODERUDWRU\ DQDO\VLV RI WKH VXVSLFLRXV SURGXFW p KH VDLG o>,@I WKH GDPDJH LV inямВ LFWHG RQ FRPSDQLHV WKH\ KDYH WR JR WR FRXUW p %XW FRPSDQLHV DSSHDU UHOXFWDQW WR JR WR FRXUW 7KH\ FODLP OLWLJDWLRQ LV D ZDVWH WLPH DQG PRQH\ VLQFH LW LV RIWHQ impossible to ямБ QG WKH EXVLQHVVHV ZKR WUDGH LQ FRXQWHUIHLW PRWRU RLO SURGXFWV r PDQ\ RI ZKRP DUH QRW HYHQ UHJLV WHUHG DV D EXVLQHVV ,PSRUWHUV OLNH /HYDQ *RJVDG]H WKH JHQHUDO GLUHFWRU RI *7 *URXS r WKH H[FOXVLYH LPSRUWHU DQG GLVWULEXWRU RI &DVWURO 2LOVr EHOLHYH WKH JRYHUQPHQW VKRXOG GR PRUH o>7KH IUHH PDUNHW@ DSSURDFK FDQ QRW EH HIIHFWLYH WR DGGUHVV WKH LVVXH LQ *HRUJLD EHFDXVH DW WKLV SRLQW LQ WLPH *HRUJLDQ FRQVXPHUV DUH KHDYLO\ RUL HQWHG RQ SULFH UDWKHU WKDQ RQ TXDOLW\ p *RJVDG]H WROG ,QYHVWRU *H +H QRWHG WKDW PDQ\ FRQVXPHUV SUHIHU WR VSHQG OHVV RQ D SURGXFW HYHQ WKRXJK LW ZLOO HYHQWXDOO\ KDUP WKHLU FDU WKDQ VSHQG PRUH IRU PRWRU RLO IURP DQ ofямБ FLDO GHDOHU D UHVXOW RI WKHLU HFR QRPLF VLWXDWLRQ DQG ODFN RI DZDUHQHVV DERXW IDOVH EUDQGLQJ 'DYLW 0DLVXUDG]H WKH GLUHFWRU RI *HRWURQLF r WKH H[FOXVLYH LPSRUWHU DQG GLVWULEXWRU RI $UDO PRWRU RLO r DJUHHV WKDW H[LVWLQJ FKDQQHOV DW WKH 02) RU VLPSO\ UHO\LQJ RQ DGYHUWLVLQJ WR UDLVH FRQVXPHU DZDUHQHVV LV QRW HQRXJK o7KH LVVXH QHHGV D PRUH FRPSOH[ DSSURDFK WKH VWDWH KDV WR VROYH WKH SUREOHP WKH DGPLQLVWUDWLRQ DQG OHJLV ODWLRQ PXVW JHW VWURQJHU p KH VDLG 7KHUH LV FXUUHQWO\ QR VWDWH DJHQF\ WKDW RYHUVHHV WKH SURWHFWLRQ RI FRQVXP HUVn ULJKWV DQG LV DXWKRUL]HG WR FRQWURO VWDQGDUGV DQG SURGXFW TXDOLW\ 7KH UXO LQJ JRYHUQPHQW SKLORVRSK\ PDQGDWHV

WKDW WKH PDUNHW LWVHOI r QRW UHJXODWRU\ bodies тАУ control which products ямВ RXU LVK CertiямБ FDWLRQ RI RLO DQG RLO SURGXFWV LV YROXQWDU\ DQG LV UDUHO\ XVHG LQ *HRU JLD QRWHG 0WYUDODVKYLOL ,PSRUWHUV OLNH *LRUJL 0VKYLOGDG]H WKH JHQHUDO GLUHFWRU RI 7HJHWD 0RWRUV EHOLHYH WKH UHVSRQVLELOLW\ RYHU TXDOLW\ FRQWURO VKRXOG EH RQ WKH JRYHUQPHQW тАЬIs Shell supposed to ямБ OH D ODZVXLW DJDLQVW DQ XQNQRZQ LQGLYLGXDO HQWUH SUHQHXU >D VWUHHW YHQGRU@"p KH DVNHG тАЬFalsiямБ HUV PLVXVH P\ EUDQGV EXW WKH\ DOVR GHFHLYH FRQVXPHUV 7KHUH VKRXOG EH D VSHFLDO VHUYLFH SURWHFWLQJ FRQVXP HUVn ULJKWV WKDW ZLOO EH UHJXODWLQJ WKH SUREOHP p 'DYLW 1DUPDQLD HFRQRPLF DQDO\VWV ZLWK WKH &HQWUH IRU (FRQRPLF 3URE OHPV 5HVHDUFK &(35 DJUHHV WKDW DQ DJHQF\ WR SURWHFW FRQVXPHUVn ULJKWV ZRXOG EH D JRRG XPEUHOOD WR OLPLW WKH FRXQWHUIHLW WUDGH LQ JHQHUDO +H FDXWLRQV KRZHYHU WKDW DQ\ SRWHQWLDO VROXWLRQ VKRXOG DGGUHVV WKH OHJLWLPDF\ RI SURGXFWV DQG WKH DFFX UDF\ RI WKH TXDOLW\ DQG FUHGHQWLDOV WKDW DUH DGYHUWLVHG QRW MXVW D oFUDFN GRZQ RQ VPDOO WUDGHUV p тАЬOf course falsiямБ FDWLRQ LV D FULPH EXW WKH PDMRULW\ RI RLO WUDGHUV GR QRW NQRZ ZKDW DUH WKH\ DUH VHOOLQJ DQG GR QRW FKHFN WKH TXDOLW\ RI WKHLU RLO p KH VDLG oDQG WKXV D SXEOLF DZDUHQHVV FDPSDLJQ FRXOG KHOS RQ WKH VXSSO\ VLGH DV ZHOO 7UDGH RI FRXQWHUIHLW JRRGV LV D ULVLQJ JOREDO SUREOHP HVWLPDWHG WR UHSUHVHQW ELOOLRQ DOPRVW RI ZRUOG WUDGH 2YHU WKH \HDUV VRPH JRYHUQPHQWV KDYH EHHQ PDNLQJ HIIRUWV WR FUDFN GRZQ RQ FRXQWHUIHLW WUDGH DQG D QXPEHU RI PXOWL QDWLRQDO FRPSDQLHV KDYH FRPH WRJHWKHU WR HVWDEOLVK RUJD QL]DWLRQV DQG DVVRFLDWLRQV WR FRPEDW FRXQWHUIHLW WUDGH

,QYHVWRU JH

7KH *URZLQJ &\EHU 7KUHDW 0XOLW /HYHO &KDOOHQJH 5HTXLUHV 0XOWL /HYHO 5HVSRQVH

)(% 0$5

,QYHVWRU JH

.+$781$ 06+9,'2%$'=(

1

RW ORQJ DJR RQO\ VFLHQFH ямБ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nV FULWLFDO LQIUDVWUXFWXUH LV ,QWHUQHW

)(% 0$5

GHSHQGHQW DQG WKHUHIRUH YXOQHUDEOH WR F\EHU DWWDFN $ ZHOO SODQQHG F\EHU RIIHQVLYH FDQ GLVDEOH FULWLFDO LQIUDVWUXF WXUH VXFK DV EDQNLQJ FRPPXQLFDWLRQV WUDQVSRUWDWLRQ RU WKH HOHFWULFDO SRZHU JULG LQFDSDFLWDWLQJ WKH FRXQWU\ DQG GHPRUDOL]LQJ WKH SRSXODWLRQ :H VKRXOG QRW EH VR QD├ЙYH WR WKLQN WKDW WKH QHZ 1$72 VWUDWHJLF FRQFHSW GRHV QRW DSSO\ WR XV o&\EHU DWWDFNV DUH EHFRPLQJ PRUH IUHTXHQW PRUH RUJDQLVHG DQG PRUH FRVWO\ LQ WKH GDP age that they inямВ LFW RQ JRYHUQPHQW DGPLQLVWUDWLRQV EXVLQHVVHV HFRQRPLHV DQG SRWHQWLDOO\ DOVR WUDQVSRUWDWLRQ DQG VXSSO\ QHWZRUNV DQG RWKHU FULWLFDO LQ IUDVWUXFWXUH WKH\ FDQ UHDFK D WKUHVKROG WKDW WKUHDWHQV QDWLRQDO DQG (XUR $WODQ WLF SURVSHULW\ VHFXULW\ DQG VWDELOLW\ p 7KH ZRUGV RI WKH %ULWLVK *RYHUQ PHQW FRXOG DSSO\ WR *HRUJLD o*RYHUQ PHQW WKH SULYDWH VHFWRU DQG FLWL]HQV DUH XQGHU VXVWDLQHG F\EHU DWWDFN WRGD\ IURP ERWK KRVWLOH VWDWHV DQG FULPLQDOV p 7KH 8QLWHG 6WDWHV 'HSDUWPHQW RI +RPHODQG 6HFXULW\ DOUHDG\ XVHV WKH o(LQVWHLQp SURJUDP WR PRQLWRU XQDX thorized trafямБ F RQ JRYHUQPHQW FRPSXW HU QHWZRUNVsWKH JRY GRPDLQ $ QHZ &\EHU &RPPDQG GHIHQGV $PHULFDQ PLOLWDU\ DVVHWVsWKH PLO GRPDLQs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sWKDW LV WKH JRY JH GRPDLQsLV DOUHDG\ D

ELJ FKDOOHQJH GHIHQGLQJ RXU FRXQWU\nV SULYDWHO\ RZQHG LQIUDVWUXFWXUH ZLOO EH even more difямБ FXOW $Q DWWDFN DJDLQVW RXU FRXQWU\ E\ D IRUHLJQ SRZHU ZDV DFWXDOO\ FDUULHG RXW DJDLQVW *HRUJLDQ EDQNV DQG WHOHFRP PXQLFDWLRQV FRPSDQLHV $Q\ EXVLQHVV ZLWK ,QWHUQHW EDVHG ,7 V\VWHPV FRXOG EHFRPH D YLFWLP RI F\EHU DWWDFN (YHQ VR FDOOHG FORVHG V\VWHPVsQHWZRUNV QRW GLUHFWO\ FRQQHFWHG WR WKH ,QWHUQHWs DUH YXOQHUDEOH DV WKH FDVHV RI :LNLOH DNV DQG 6WX[QHW KDYH GHPRQVWUDWHG /DUJH DQG PHGLXP VL]H EXVLQHVVHV DUH HTXDOO\ DW ULVN /DUJH FRUSRUDWLRQV PD\ EH PRUH OXFUDWLYH WDUJHWV EXW WKH\ KDYH PRUH UHVRXUFHV WR HQVXUH WKHLU F\EHU VHFXULW\ 0HGLXP VL]H FRPSD QLHV PD\ QRW DWWUDFW DV PXFK DWWHQWLRQ IURP KRVWLOH F\EHU ZDUULRUV EXW WKH\ also have fewer ямБ QDQFLDO UHVRXUFHV IRU F\EHU GHIHQVH :H DUH XS DJDLQVW WKH FRPELQHG UHVRXUFHV RI QDWLRQ VWDWHV VS\ DJHQ FLHV DQG ODUJH VFDOH F\EHU FULPLQDOV ,QGHHG VRPH FULPLQDO JURXSV DUH XQGHU WKH SDWURQDJH DQG SURWHFWLRQ RI PDOHYROHQW VWDWHV )RU H[DPSOH VRPH VHFXULW\ H[SHUWV RSHQO\ GHQRXQFH WKH 5XVVLDQ %XVLQHVV 1HWZRUNnV LQYROYH PHQW LQ WKH (VWRQLDQ DQG *HRUJLDQ F\EHU DWWDFNV 7KHUH LV QR FOHDU ODZ DJDLQVW F\EHU FULPH LQ 5XVVLDsWKH practice is semi-ofямБ FLDOO\ HQFRXUDJHG VR ORQJ DV LW LV QRW GLUHFWHG DJDLQVW WKH PRWKHUODQG 6RPHWLPHV KDFNHUV DQG F\EHU FULPLQDOV DUH HYHQ SXEOLFO\ SUDLVHG 0RUHRYHU ZKLOH F\EHU VHFXUL W\ H[SHUWV LQ PRVW GHPRFUDWLF FRXQWULHV FU\ RXW IRU WRS OHYHO VXSSRUW HOLWHV LQ WKH FRXQWULHV RI F\EHU FRQFHUQ SD\ FORVH DWWHQWLRQ 7KLV LV OLNHO\ EHFDXVH F\EHU ZDUIDUH OLHV DW WKH FURVVURDGV RI ZDUIDUH HVSLRQDJH DQG FULPH ZKLFK LV FORVHO\ FRQQHFWHG WR WKHVH HOLWHV 6RRQ DIWHU 9ODGLPLU 3XWLQ FDPH WR SRZHU IRU H[DPSOH 5XVVLD DGRSWHG

,QYHVWRU JH

)(% 0$5

,QYHVWRU JH

&\EHU VHFXULW\ LV LPSRUWDQW IRU JRYHUQPHQWV DURXQG WKH JOREH

D QHZ LQIRUPDWLRQ VHFXULW\ GRFWULQH 7KHQ VSHDNLQJ DW D -XQH 1DWLRQDO 6HFXULW\ &RXQFLO PHHWLQJ WKH QHZ SUHVLGHQW TXLFNO\ GLVSOD\HG KLV KDFNHU VDYY\ E\ GHFODULQJ WKDW 5XVVLDQ GHSHQ GHQFH RQ IRUHLJQ SURGXFHUV RI FRPSXW HUV DQG WHOHFRPPXQLFDWLRQV V\VWHPV UHSUHVHQWHG D VHULRXV WKUHDW WR QDWLRQDO VHFXULW\ (YLGHQWO\ 3XWLQnV LQWHUHVW LQ F\EHU PDWWHUV KDV QRW ZDQHG GXULQJ KLV GHFDGH LQ SRZHU ,Q ODWH KH RU GHUHG DOO 5XVVLDQ )HGHUDWLRQ FRPSXWHUV VZLWFKHG WR /LQX[ EDVHG RSHQ VRXUFH VRIWZDUH E\ $ FRPSOHWH RSHUDW LQJ V\VWHP FRXOG EH ODXQFKHG E\ 7KLV ZLOO UHGXFH FRVWV DQG HQFRXUDJH GHYHORSPHQW RI DQ LQGLJHQRXV VRIWZDUH LQGXVWU\ 0RVW LPSRUWDQWO\ LW ZLOO SURWHFW 5XVVLDQ ,7 DVVHWV ,Q 5XVVLD oRSHQp ZLOO PHDQ RQO\ QR GHSHQGHQFH RQ IRUHLJQ FRPSDQLHV )(% 0$5

IRU FORVHG VRXUFH RSHUDWLQJ V\VWHPV 5XVVLDQ F\EHU ZDUULRUV F\EHU FULP LQDOV DQG SDWULRWLF KDFNHUV ZLOO KLGH EHKLQG RSHUDWLQJ V\VWHPV RI WKHLU RZQ PDNLQJ IUHH WR EX\ VWXG\ DQG H[SORLW FRPPHUFLDO VRIWZDUH GHYHORSHG LQ WKH ZHVW 7KH FKDOOHQJH LV GDXQWLQJ EXW LW PXVW EH PHW E\ HYHU\ GHPRFUDWLF FRXQWU\ LQFOXGLQJ *HRUJLD $QG LQ WKLV FDVH FRXQWU\ GRHV QRW PHDQ RQO\ JRY HUQPHQW EXW EXVLQHVVHV DQG LQGLYLGX DOV DV ZHOO The ямБ UVW SULRULWLHV DUH WR GHIHQG JRYHUQPHQW FRPSXWHU QHWZRUNV DQG WR HVWDEOLVK D &RPSXWHU (PHUJHQF\ 5HVSRQVH 7HDP RU &(57 %H\RQG WKLV XQSUHFHGHQWHG KRUL]RQWDO DQG YHUWLFDO FRRSHUDWLRQ LV QHHGHG WR PHHW WKH IXOO F\EHU WKUHDW ,Q GHPRFUDWLF FRXQWULHV PXFK RI D QD WLRQnV FULWLFDO LQIUDVWUXFWXUH LV SULYDWHO\ RZQHG 2Q WKH KRUL]RQWDO SODQH FORVH

JRYHUQPHQW EXVLQHVV SDUWQHUVKLS LV UH quired to deямБ QH FULWLFDO LQIUDVWUXFWXUH WR GHWHUPLQH KRZ WR GHIHQG LW DQG WR DJUHH XSRQ ZKR ZLOO GR ZKDW 2Q WKH YHUWLFDO SODQH WKH F\EHU WKUHDW LV ELJJHU WKDQ DQ\ FRXQWU\ DQG E\ LWV QDWXUH VNLSV RYHU QDWLRQDO ERUGHUV &RQVHTXHQWO\ F\EHU VHFXULW\ UHTXLUHV IXOO FRRSHUDWLRQ DPRQJ OLNH PLQGHG VWDWHV DSSURSULDWH LQWHUQDWLRQDO RUJDQL]DWLRQV DQG EXVLQHVVHV 8QOLNH D WUDGLWLRQDO PLOLWDU\ DW WDFNsHYHU\RQH UHFDOOV WKRVH KRUULEOH pictures of GoriтАФit is difямБ FXOW WR GUD PDWL]H WKH F\EHU WKUHDW 1RQHWKHOHVV ZH KDG EHWWHU EDQG WRJHWKHU WR GHIHQG DJDLQVW LWsLW LV QR H[DJJHUDWLRQ WR VD\ WKDW RXU IXWXUH GHSHQGV RQ LW .KDWXQD 0VKYLGREDG]H LV 6HQLRU $VVRFLDWH *HRUJLDQ 6HFXULW\ $QDO\VLV &HQWHU 7ELOLVL

,QYHVWRU JH

.XWDLVL WKH 6HFRQG &DSLWDO .XWDLVL *HRUJLD·V VHFRQG ODUJHVW FLW\ KDV ODQJXLVKHG IRU WKH SDVW WZR GHFDGHV DV LWV IDFWRULHV FORVHG DQG LQIUDVWUXFWXUH FUXPEOHG 1RZ GXULQJ WKH <HDU RI .XWDLVL LW LV PDNLQJ D IUHVK VWDUW DV D SROLWLFDO HFRQRPLF DQG FXOWXUDO FHQWHU RI ZHVWHUQ *HRUJLD

0RUH DWWUDFWLYH IRU LQYHVWRUV XU$VLD 6W\OH D MRLQW ,QGLDQ *HRU JLDQ YHQWXUH FDPH WR .XWDLVL LQ LQYHVWLQJ PLOOLRQ ,Q WKH SUHYLRXV \HDU )UHVK (OHFWULFV DQ (J\SWLDQ KRPH DSSOLDQFHV FRPSDQ\ ODXQFKHG D YHQWXUH LQ WKH .XWDLVL )UHH ,QGXVWULDO =RQH ),= LQYHVWLQJ PLOOLRQ LQ HTXLSPHQW DQG SURSHUW\ 7KH KRVSLWDOLW\ LQGXVWU\ DOVR VHHPV WR EH RQ WKH ULVH ,Q WKH KRWHO DQG UHVWDX UDQW EXVLQHVV WKH )', LQ ,PHUHWL UHJLRQ LQFUHDVHG IURP RYHU *(/ LQ WR DSSUR[LPDWHO\ PLOOLRQ *(/

(

LQ $V RI 2FWREHU WKHUH DUH UHVWDXUDQWV FDIHV DQG EDUV LQ .XWDLVL 7KH SURMHFW WR FRQVWUXFW WKH =H VWDSRQL .XWDLVL 6DPWUHGLD VHFWLRQ RI (DVW :HVW KLJKZD\ KDV EHHQ DSSURYHG DQG WKH FRQVWUXFWLRQ ZRUNV DUH GXH WR EH fi QLVKHG LQ ,Q DGGLWLRQ WKHUH LV D SODQ WR UH KDELOLWDWH .RSLWQDUL $LUSRUW ORFDWHG MXVW RXWVLGH RI .XWDLVL $FFRUGLQJ WR &KUHODVKYLOL YDULRXV IRUHLJQ FRPSDQLHV LQFOXGLQJ 7XUNLVK DQG *HUPDQ EXVLQHVV PHQ KDYH H[SUHVVHG DQ LQWHUHVW LQ WKLV SURMHFW DQG WKH GHDOV DUH H[SHFWHG WR EH FRQFOXGHG LQ WKH QHDU IXWXUH

o.XWDLVL LV LQFUHDVLQJO\ EHFRPLQJ D IDYRUDEOH SODFH LQ ZKLFK WR LQYHVW p VDLG 0DONKD] &KUHODVKYLOL FKLHI RI WKH (FRQRPLF 3ROLF\ 'HSDUWPHQW DW .XWDLVL 0XQLFLSDOLW\ LQ DQ LQWHUYLHZ ZLWK ,QYHV WRU JH o>,@QYHVWRU LQWHUHVW LV RQ WKH ULVH ZLWK D SDUWLFXODU IRFXV RQ KRWHOV DQG VKRSSLQJ PDOOV 7KHUH DUH SURSRVDOV E\ VHULRXV FRPSDQLHV DQG ZH H[SHFW WR DJUHH GHDOV ZLWK WKHP WKLV \HDU p ´0LQL 9LHQQD 6WDWH 2SHUDµ LQ ,PHUHWL 7KLV \HDU LV WKH \HDU RI .XWDLVL DF FRUGLQJ WR 3UHVLGHQW 0LNKHLO 6DDNDVKYLOL o,W ZDV SDLQIXO IRU PH WR FRPH KHUH

.XWDLVL·V UHPRGHOHG 2SHUD +RXVH 3KRWR FRXUWHV\ RI WKH 3UHVLGHQW·V $GPLQLVWUDWLRQ

0$,$ (',/$6+9,/,

)(% 0$5

,QYHVWRU JH

DQG VHH WKH FROODSVHG VWUHHWV WKH GLVDS SRLQWPHQW WKH GHVHUWHG FLW\ DQG GHVSDLU 1RZ UHFRQVWUXFWLRQ RI WKLV FLW\ KDV EHHQ ODXQFKHG EULQJLQJ EDFN WKH ROG WLPH JORU\ p KH VDLG GXULQJ D YLVLW WR WKH FLW\ ODVW \HDU 7KH FLW\ RSHUD DQG EDOOHW WKHDWHU LV EHLQJ UHEXLOW DQG ZLOO EH D oPLQL YHUVLRQ RI WKH 9LHQQD 6WDWH 2SHUD p DFFRUGLQJ WR WKH ,PHUHWL JRYHUQRUnV ofямБ FH 7KH 7RUSHGR )RRWEDOO 6WDGLXP ZDV DOVR UHPRGHOHG 7KH ILUVW VWDJH RI .XWDLVLn V PRG HUQL]DWLRQ SURMHFW LQFOXGHG UHPRGHOLQJ DQG UHFRQVWUXFWLRQ RI 6DPHIR 8EDQL WKH .LQJV 'LVWULFW WKH 7HWUL .KLGL WKH :KLWH %ULGJH DQG WKUHH VWUHHWV 7VLVSHUNDQWVHOWD 6WUHHW 7VHUHWHOL 6WUHHW DQG 3XVKNLQL 6WUHHW ,Q WRWDO EXLOG LQJV ZHUH UHFRQVWUXFWHG DQG UHKDELOLWDWHG ZKLOH VHYHQ QHZ RQHV ZHUH FRQVWUXFWHG ,Q DGGLWLRQ QDWXUDO JDV SLSHV ZD WHU SLSHV DQG HOHFWULFLW\ FDEOHV ZHUH FKDQJHG VWUHHWV UHSDYHG DQG PRGHUQ

.XWDLVL KDV QHZ VWUHHWV DQG QHZ IDFDGHV 3KRWR FRXUWHV\ RI :LNLFRPPRQV

)(% 0$5

OLJKWLQJ LQVWDOOHG $FFRUGLQJ WR 7HPXU 7VDJDUHLVYLOL FKLHI RI )LQDQFLDO 6HUYLFHV DW .XWDLVL 0XQLFLSDOLW\ FRQVWUXFWLRQ DQG UHKDELOLWDWLRQ RI WKHVH GLVWULFWV FRVW D WRWDO RI PLOOLRQ *(/ LQ

7KH 3DUOLDPHQWDU\ &LW\ $V SDUW RI WKH SODQ WR WXUQ .XWDLVL LQWR WKH VHFRQG FDSLWDO FLW\ UHORFDWLQJ D QXP EHU RI JRYHUQPHQW DJHQFLHV IURP 7ELOLVL WR .XWDLVL LV RQ WKH DJHQGD 7KH &KDPEHU RI &RQWURO 'HSDUWPHQW RI 5RDGV DQG WKH &HQWUDO (OHFWLRQ &RPPLVVLRQ KDYH DOUHDG\ EHHQ UHORFDWHG WR .XWDLVL 7KH VWDU RI WKH QHZ SURJUDP r WKH *HRUJLDQ SDUOLDPHQW r ZLOO PRYH WR .XWDLVL LQ =YLDG .KXMDG]H HGLWRU RI ']YHOL .DODNL 7KH 2OG &LW\ D UDGLR FRPSDQ\ EDVHG LQ .XWDLVL VD\V WKH SDUOLDPHQWn V UHORFDWLRQ LV D oSRVLWLYHp PRYH WKDW ZLOO KHOS ILJKW PDVVLYH XQHPSOR\PHQW LQ WKH FLW\ $QRWKHU SRVLWLYH IDFWRU VXSSRUWLQJ

WKH LGHD LV SROLWLFDO PRWLYDWLRQ o7 DN LQJ LQWR DFFRXQW WKH SROLWLFDOO\ WHQVH VLWXDWLRQ LQ *HRUJLD FUHDWLQJ WKH VHFRQG SROLWLFDO FHQWHU LQ WKH PRVW SHDFHIXO DSROLWLFDO FLW\ RI *HRUJLD VKRXOG EH VHHQ as a justiямБ DEOH VWHS p .KXMDG]H DGGHG 7KH FRVW RI WKH PRYH KRZHYHU KDV UDLVHG FRQFHUQV 7VDJDUHLVYLOL VDLG PLOOLRQ *(/ KDV DOUHDG\ EHHQ DOORFDWHG IURP WKH FHQWUDO EXGJHW WR EXLOG WKH QHZ SDUOLDPHQW EXLOG LQJ +H ZDV XQDEOH WR VD\ KRZ PXFK ZLOO WKH FRQVWUXFWLRQ FRVW RYHUDOO EXW VDLG that last year no ямБ QDQFLQJ ZDV SURYLGHG IRU IXUWKHU UHKDELOLWDWLRQ ZRUNV LQ WKH FLW\. тАЬAll the ямБ QDQFLQJ WKLV \HDU ZLOO EH >IRFXVHG@ RQ EXLOGLQJ WKH SDUOLDPHQW KRXVH p KH DGGHG /RFDWHG NP IURP 7ELOLVL .XWDLVL LV D PXVW┬▒VHH GHVWLQDWLRQ IRU WRXULVWV 7ZR 81(6&2 :RUOG +HULWDJH VLWHV DUH ORFDWHG QHDU WKH FLW\ WKH *HODWL 0RQDV WHU\ DQG %DJUDWL &DWKHGUDO

,QYHVWRU JH

$ SURSRVHG GHVLJQ IRU %DWXPL┬╖V QHZ 0LQLVWU\ RI -XVWLFH 3KRWR FRXUWHV\ RI ZZZ RIILFHHWRVRQL FRP

1HZ +RWHOV %ROVWHU ,QYHVWPHQW LQ $GMDUD

FDWFKLQJ PRGHUQ DUFKLWHFWXUDO SLHFH FRPSRVHG RI JODVV DQG LURQ VLWXDWHG LQ QYHVWPHQW LQ $GMDUD LQFUHDVHG E\ WKH FDSLWDOnV ROG WRZQ $ ORFDO GHYHORSHU ямБ YH SHUFHQW LQ DFFRUGLQJ WR 1HZ &RQVWUXFWLRQ &RPSDQ\ ZLOO RYHU WKH DXWRQRPRXV UHJLRQn V 0LQLVWU\ VHH WKH %DWXPL SURMHFW RI )LQDQFH DQG (FRQRP\ $ SOHWKRUD RI o7KH SODQ LV WR FRQVWUXFW IRXU EXLOG QHZ KRWHOV DQG DSDUWPHQWV SODQQHG IRU LQJV EHKLQG >WKLV KRXVH@ ZKLFK ZLOO EH %DWXPL LV EROVWHULQJ IRUHLJQ LQYHVWPHQW VWRULHV DQG KLJKHU LQFOXGLQJ KRWHOV LQ WKH %ODFN 6HD UHVRUW DQG UHVLGHQWLDO KRPHV p 6DDNDVKYLOL ,Q 1RYHPEHU 3UHVLGHQW 0LNKHLO said in his speech. тАЬI think ямБ YH WR VL[ 6DDNDVKYLOL DWWHQGHG WKH LQDXJXUDWLRQ RI WKRXVDQG SHRSOH ZLOO EH HPSOR\HG LQ D QHZ FRQVWUXFWLRQ VLWH LQ %DWXPLnV QHZ WKH FRQVWUXFWLRQ ZRUNV IRU WKLV YHQWXUH ERXOHYDUG D VWRU\ UHVLGHQWLDO EXLOG 7KLV LV DQ LQYHVWPHQW PDGH ZLWK WKH ORFDO LQJ FRPSULVLQJ DSDUWPHQWV *RLQJ E\ HFRQRP\ LQ PLQG p WKH QDPH m%DWXPL .D]Dn WKH SURMHFW LV $QRWKHU SURMHFW EHLQJ SODQQHG LV GXH WR EH FRPSOHWHG E\ ZLWK WKH DLG Semiramida Gardens, a ямБ YH VWDU KRWHO RI D PLOOLRQ LQYHVWPHQW 7KH VWRUH\ URRP EXLOGLQJ ZLOO 7KH EXLOGLQJ KDV EHHQ GHVLJQHG E\WKH KDYH DQ RXWGRRU DQG LQGRRU VZLPPLQJ ,WDOLDQ DUFKLWHFW 0LFKHO 'H /XFFKL SRRO UHVWDXUDQWV DQG KHDOWKFDUH IDFLOLWLHV ZKR ZDV DOVR UHVSRQVLEOH IRU GHVLJQLQJ RQ WKH QHZO\ EXLOW %DWXPL %RXOHYDUG WKH %ULGJH RI 3HDFH LQ 7ELOLVL DQ H\H 7KH OX[XULRXV KRWHO WKH VXEMHFW RI

0$,$ (',/$6+9,/,

,

)(% 0$5

,QYHVWRU JH

DQ HVWLPDWHG PLOOLRQ LQYHVWPHQW E\ Dia Holding, will be the ямБ UVW ODUJH VFDOH LQYHVWPHQW LQ *HRUJLD IRU DQ $]HUEDLMDQL FRPSDQ\ ,WV IRUHFDVWHG FRPSOHWLRQ GDWH LV 7KH LPSUHVVLYH FRPSOH[ ZDV GH VLJQHG E\ *HRU JLDQ DUFKLWHFWV =D]D .YLUNYHOLD DQG 9D]KD 2UEHOLG]H o7KLV KRWHO ZLOO EH RQH RI WKH PRVW EHDXWLIXO WKDW ,nYH VHHQ DFURVV WKH ZRUOG p 6DDNDVKYLOL VDLG DW WKH JURXQGEUHDNLQJ FHUHPRQ\ RQ 'HFHPEHU 2Q 1HZ <HDUnV (YH DQRWKHU JUDQG investment project was ямБ QDOL]HG DW WKH 0LQLVWU\ RI (FRQRP\ DQG )LQDQFH RI $GMDUD 5LW] &DUOWRQ D IDPRXV ZRUOG UHQRZQHG EUDQG RI OX[XU\ KRWHOV ZLOO

construct a ямБ YH VWDU KRWHO LQ 2OG %DWXPL E\ 7KH SURMHFWnV DSSUR[LPDWH FRVW LV PLOOLRQ $FFRUGLQJ WR WKH 'HSDUWPHQW RI 7RXULVP DQG 5HVRUWV RI $GMDUD WKH FRQ VWUXFWLRQ RI WKH URRP 5LW] &DUOWRQ with 50 ямВ RRUV PHWHUV KLJK ZLOO VWDUW LQ 0D\ 8QGHU WKH LQYHVWPHQW FRQWUDFW MREV ZLOO EH FUHDWHG RI ZKLFK ZLOO EH RIIHUHG WR ORFDOV 7KH OLVW RI KRWHO FRQVWUXFWLRQ SURMHFWV VLJQHG LQ DOVR LQFOXGHV &XEH 7RZHU DQG 3ULQFHVV +RWHO DW D FRVW RI PLO OLRQ DQG PLOOLRQUHVSHFWLYHO\ $FFRUGLQJ WR WKH 0LQLVWU\ RI )LQDQFH DQG (FRQRP\ RI $GMDUD WKH WRWDO LQYHVW PHQW LQ $GMDUD LQ DPRXQWHG WR

7KH SURSRVHG GHVLJQ IRU %DWXPL┬╖V QHZ DTXDULDP 3KRWR FRXUWHV\ RI +HQQLQJ /DUVHQ $UFKLWHFWV

)(% 0$5

PLOOLRQ PLOOLRQ LQ IRUHLJQ FDSLWDO

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

*(25*,$1 )$6+,21 ,67$

,QYHVWRU JH

%HKLQG WKH JOLWWHU DQG WKH UXQZD\V LV WKHUH D *HRUJLDQ IDVKLRQ LQGXVWU\"

)(% 0$5

,QYHVWRU JH

021,&$ (//(1$

o)DVKLRQ LV PHUHO\ D IRUP RI XJOLQHVV VR XQEHDUDEOH WKDW ZH DUH FRPSHOOHG WR DOWHU LW HYHU\ VL[ PRQWKV p 2VFDU :LOGH 2VFDU :LOGH NQHZ D WKLQJ RU WZR DERXW VW\OH 1RZ *HRU JLD LV FDWFKLQJ RQ ODVW \HDU WKH FRXQWU\ VKRZFDVHG IRXU IDVKLRQ ZHHNV r WZR *HRU JLDQ )DVKLRQ :HHNV *): DQG WZR 7ELOLVL )DVKLRQ :HHNV 7):

'LIIHUHQW EUDQGLQJ GLVWLQFW SODQ QLQJ GLYHUVH JXHVWV XQLTXH GHVLJQHUV D FURZGHG IDVKLRQ VFHQH 2QH WUXPSHWHG

JRDO JHWWLQJ QHZ LGHDV RQ WKH FDWZDONV DW KRPH DQG LQYLWLQJ IRUHLJQHUV WR VHH $QG SRVVLEO\ EX\ o7KH DLP RI WKH *): LV WR SURPRWH ORFDO GHVLJQHUV ZRUOGZLGH p H[SODLQV 0DND 0HWUHYHOL RQH RI WKH PDVWHUPLQGV RI WKH HYHQW r DQG WKH ZLIH RI *HRU JLDQ 3DUOLDPHQW &KDLUPDQ 'DYLW %DNUDG]H o2XU SULRULW\ LV QRW WKH VKRZ EXW WKH FUHDWLRQ RI D *HRUJLDQ IDVKLRQ EUDQG DQG PRUH EURDGO\ DQ LQGXVWU\ LQ JHQHUDO The high proямБ OHV RI RXU JXHVWV SXVK WKH GHVLJQHUV WR PDNH EHWWHU FROOHFWLRQV WR EULQJ WKHLU FUHDWLYLW\ WR D PRUH SURIHV VLRQDO OHYHO p 6R IDU WKH\ DSSHDU WR EH VXFFHHGLQJ )RUHLJQ EX\HUV MRXUQDOLVWV EORJJHUV

$'9(57,6(0(17

)(% 0$5

GHVLJQHUV DQG IDVKLRQLVWDV RI DOO NLQGV FDPH IRU WKH VKRZV +HDY\ ZHLJKWV ZHUH LQYLWHG WR EULQJ LQ H[SHULHQFH DQG JODPRXU 3DULV DGRSWHG FRXWXULHU ,UDNOL 1DVLG]H ZKR ZRUNHG ZLWK &KULVWLDQ /D croix) opened the ямБ UVW *): ZKLOH ,WDOLDQ GHVLJQHU 5REHUWR &DYDOOL SUHVLGHG RYHU WKH 7): 7KH WKHQ YLUWXDOO\ XQNQRZQ *HRUJLDQ FUHDWLYLW\ HQGHG XS LQ IDVKLRQ oELEOHVp OLNH 9RJXH ,WDO\ DQG )DVKLRQ 79 1LQR &KXELQLVKYLOLn V $QJHO FRO OHFWLRQ FDXJKW 3LHUUH &DUGLQn V KHDUW 7KH )UHQFK OLYLQJ OHJHQG LQYLWHG WKH \HDU ROG GHVLJQHU WR 3DULV 7KH PHHW LQJ ZDV QRW D PHUHO\ FRXUWHV\ JHVWXUH +HFWLF DQG VHFUHW QHJRWLDWLRQV IROORZHG EHWZHHQ 3DULV DQG 7ELOLVL DQG LQ PLG -DQXDU\ &DUGLQ DQG &KXELQLVKLYLOL VLJQHG D FRQWUDFW WR ODXQFK IRU D QHZ MRLQW EUDQG &KXELND IRU 3LHUUH &DUGLQ %(<21' 7+( &$7:$/.

7KH 6RYLHW 8QLRQ DQG LWV XQLIRUPHG VW\OH SHULVKHG MXVW D FRXSOH RI GHFDGHV DJR VR *HRU JLDQ GHVLJQHUV DUH VWDUWLQJ IURP VFUDWFK 6KRZFDVLQJ ZKDW WKH oQHZ EORRGp FDQ RIIHU LV D JRRG LGHD )DVKLRQ ZHHNV DUH NH\ HYHQWV RI WKH LQGXVWU\ WKH\ VKRZ ZKDWnV oLQp DQG oRXWp IRU WKH VHD VRQ 'HVLJQHUV DQG EUDQGV GLVSOD\ WKHLU ODWHVW FROOHFWLRQV ERWK RQ FDWZDONV DQG LQ

VKRZURRPV DV EX\HUV ORRN IRU WUHQGV DQG NHHS WKHLU H\HV SHHOHG IRU ZKDW PLJKW EH WKH QH[W &KDQHO )RXU IDVKLRQ VKRZV LQ RQH \HDU WKRXJK ULVN D FRXQWHU HIIect: an inямВ D WLRQ RI HYHQWV %RWK *): DQG 7): DLP WR SRVLWLRQ *HRUJLDQ IDVKLRQ DV D QLFKH PDUNHW RQ WKH JOREDO VFHQH DOWKRXJK 7): r ZKLFK KDV DOVR VHW XS D VKRS LQ FHQWUDO 7ELOLVL VHOOLQJ VROHO\ *HRU JLDQ GHVLJQHUVn FUHDWLRQV r EHOLHYHV LQ D VWHS E\ VWHS DSSURDFK o/RRNLQJ DW WKH LQWHUQDWLRQDO VWDJH LV LPSRUWDQW DQG ZH SURYHG RXU LQWHQ WLRQV E\ EULQJLQJ &DYDOOL WR 7ELOLVL p VD\V 6RSKLH 0DPDUGDVKYLOL RQH RI WKH RUJDQL]HUV RI 7): ZKLFK LV D MRLQW HI IRUW RI *HR0RGHOV %UDQGLQJ JH DQG *HRUJLDQ (YHQWV o2XU LPPHGLDWH IRFXV WKRXJK VKRXOG EH WKH UHJLRQ $UPHQLD DQG $]HUEDLMDQ DQG FRXQWULHV ZLWK ZKLFK ZH WUDGLWLRQDOO\ KDYH VWURQJ EXVLQHVV UHODWLRQVKLSV OLNH 8NUDLQH p %XW EH\RQG WKH FDWZDON LV WKHUH D *HRUJLDQ IDVKLRQ oLQGXVWU\p" 'HVLJQHUV OLNH $YWDQGLO 7VNYLWLQLG]H VD\ QR o$Q LQGXVWU\ UHTXLUHV FUHDWLYLW\ DQG EXVLQHVV p VD\V 7VNYLWLQLG]H RQH RI *HRUJLDnV PRVW IDPRXV GHVLJQHUV +LV work was once deямБ QHG E\ 6X]\ 0HQNHV WKH 1HZ <RUN 7LPHVn IDVKLRQ FULWLF DV

,QYHVWRU JH

'HVLJQ E\ $YWDQGLO

)(% 0$5

,QYHVWRU JH

oEHDXWLIXO DQG ODERULRXV p o,WnV QRW DOO DERXW FDWZDONV QHZ VW\OHV QHZ WUHQGV LWnV DOVR DERXW PDNLQJ EX\LQJ DQG VHOOLQJ p KH VDLG $QG *HRUJLD ZKLOH QRW VKRUW RI FDW ZDONV GRHVQnW KDYH PRQH\ WR VSDUH 7KH ZHDN PDQXIDFWXULQJ VHFWRU LV D PDMRU REVWDFOH o2XU LQIUDVWUXFWXUHV FROODSVHG ZLWK WKH FROODSVH RI WKH 6RYLHW 8QLRQ p r VD\V 0DPDUGDVKYLOL o7KHUH DUH VLJQDOV RI UHFRYHU\ EXW WKH VHFWRU QHHGV D ERRVW ,W QHHGV LQYHVWPHQWV p 7H[WLOH IDFWRULHV FDQ EH FRXQWHG RQ RQH KDQG ,Q .KHOYDFKDXUL $GMDUD WKH IDFWRU\ %70 VHW XS E\ WKH 7XUNLVK $7. &RUS ZLWK LWV GDXJKWHU *HRU JLDQ FRPSDQ\ %70 7H[WLOH VXSSOLHV (XURSHDQ KLJK VWUHHW FKDLQV OLNH WKH %ULWLVK 0DUNVDQG 6SHQFHU ,Q LW DOVR VWDUWHG PDQXIDFWXULQJ IRU WKH QHZ FORWKLQJ GHSDUWPHQW RI *RRGZLOO WKH &DXFDVXVn ELJJHVW K\SHU PDUNHW DQG RQH RI *HRUJLDnV ODUJHVW SULYDWH HPSOR\HUV ,Q .XWDLVL $YWDQGLO KLPVHOI DFTXLUHG WKH PDMRULW\ VWDNH LQ ,PHUHWL -6& .XWDLVL ZKLFK DORQJVLGH WZR DUWLVDQDO ODERUD WRULHV PDQXIDFWXUHV SDUW RI WKH GHVLJQ HUVn SUÄW D SRUWHU DQG MHDQV VSRUWVZHDU SURGXFWLRQ 0DPDUGDVKYLOLnV YLVLRQ LV D XQLTXH EUDQG o$ *HRUJLDQ ODEHO EULQJLQJ WR JHWKHU IHZ GHVLJQHUVp ZRXOG UHGXFH WKH FRVWV DQG DOORZ GHVLJQHUV WR SDUWLFLSDWH LQ HYHQWV r DW KRPH DQG DEURDG r ZLWK RXW WKH SUHVVXUH RI D ZKROH FROOHFWLRQ p VKH VDLG $ o0DGH LQ *HRUJLDp OLNH WKH o0DGH LQ ,WDO\p WKHQ" ,WDO\ EDQNHG RQ LWV VWURQJ PDQXIDFWXULQJ WUDGLWLRQ WR EXLOG D VHFWRU ZKLFK HPSOR\V DURXQG SHRSOH and whose revenues in 2008 were € 52 ELOOLRQ *HRUJLD VWLOO GRHVQn W KDYH D UHDO SURGXFWLRQ o,WnV QRW URFNHW VFLHQFH LI \RX GRQnW SURGXFH \RX FDQQRW VHOO p FRQ FOXGHV &KXELQLVKYLOL o$QG LI \RX GRQnW SURGXFH \RX GRQnW KDYH PXFK WR RIIHU WR )(% 0$5

EX\HUV FRPLQJ WR WKH IDVKLRQ HYHQWV LQ the fi UVW SODFH p

,PDJHV IURP 1LQR &KXELQLVKYLOL·V FROOHFWLRQ

)DVKLRQ E\ %LFKROOD

6/((. $1' &+,& ,WDOLDQV DUH VOHHN DQG FDVXDOO\ VPDUW )UHQFK FKLF DQG FODVV\ FRXWXUH %ULWLVK JUXQJH DQG XQFRQYHQWLRQDOO\ WUHQG\ $QG *HRUJLDQV" *HRUJLDQV DUH EODFN 'RZQ WKH VWUHHW LQ WKH FDIHV RQ WKH FDWZDONV %ODFN LV WKH FRORU WR EH VHHQ LQ o%ODFN LV QR FRORU DQG \HW DOO FRO RUV p H[SODLQV *LRU JL6KDJKDVKYLOL WKH &RSHQKDJHQ EDVHG GRFWRU WXUQHG IDVKLRQ GHVLJQHU ZKRVH LQJHQLRXV WKUHH LQ RQH JDUPHQWV ZHUH SUDLVHG GXULQJ WKH 7): LQ 1RYHPEHU 7KHUH LV D FRPPHUFLDO VLGH WR LW WKRXJK o%ODFN LV HDV\ p VD\V $YWDQGLO o,W PDWFKHV HYHU\WKLQJ LWnV YHUVDWLOH p 7KH ([DPLQHU D 8 6 RQOLQH PDJD ]LQH ZKLFK FRYHUHG WKH *): ZURWH WKDW oWKH FORWKHV VKRZQ ZHUH YHU\ DYDQW JDUGH E\ ZHVWHUQ VWDQGDUGV 7KHVH GH VLJQHUV DUHQnW DIUDLG RI RIIHQGLQJ DQ\RQH 3HRSOH LQ WKH ZHVW DUH PRUH FDXWLRXV 0RQH\ PDNHV SHRSOH PRUH FDXWLRXV EHFDXVH WKHUH LV PRUH WR ORVH p 7KLV RSLQLRQ LV QRW XQLYHUVDOO\ VKDUHG WKRXJK *LR *DXGHW D *HRUJLDQ GHVLJQHU EDVHG LQ 7RURQWR &DQDGD ZKR XVHV WKH WUDGLWLRQDO *HRUJLDQ IHOW DQG VLON WR FUH DWH KLJK HQG IDVKLRQ FORWKHV EHOLHYHV GHVLJQHUV QHHG WR ORRN DW WKHLU RZQ WUDGLWLRQ UDWKHU WKDQ ZKDW WKH UHVW RI WKH ZRUOG SURGXFHV *DXGHW ZKR DOVR VHUYHG DV D MXGJH RQ WKH 1HZFRPHUVn MXU\ DW WKH 7): LQ 1RYHPEHU GRHVQn W OLNH LW oZKHQ DQ\ IDVKLRQ GHVLJQHU UHPLQGV PH RI DQRWKHU GHVLJQHUnV VW\OH 'HVLJQHUV VKRXOG ORRN WKURXJK WKH KLVWRU\ RI *HRUJLDQ FRVWXPHV DQG UHPDNH VRPH RI WKH ROG VW\OHV ,Wn V (DVWHUQ (XURSH DQG *HRU JLDQV VKRXOG DFNQRZOHGJH WKDW 1RW HYHU\WKLQJ FDQ EH )UHQFK p *LRUJL 6KDJKDVKYLOL DJUHHV o,I \RX GRQn W NQRZ \RXU SDVW \RX FDQnW EXLOG WKH IXWXUH p

,QYHVWRU JH

'HVLJQ E\ $YWDQGLO

)(% 0$5

,QYHVWRU JH

&UHDWLQJ DQ (FRQRP\ /DVW \HDU ,QYHVWRU JH SXEOLVKHG D VHULHV RI DUWLFOHV RQ WKH *HRUJLDQ PLGGOH FODVV DQG WKH FUHDWLRQ RI VPDOO DQG PHGLXP EXVLQHVVHV ,Q ZH ZLOO SXEOLVK D VHULHV RQ KRZ WKH PRGHUQ *HRUJLDQ HFRQRP\ ² DQG *HRUJLDQ EXVLQHVV ² KDV HYROYHG 7KH ILUVW DUWLFOH LV GHGLFDWHG WR EXVLQHVV DW WKH WXUQ RI WKH WK FHQWXU\ DQG WKH VKRUW OLYHG 'HPRFUDWLF RU )LUVW 5HSXEOLF RI *HRUJLD

)(% 0$5

7KH SROLWLFV RI *HRUJLD LQ WKH HDUO\ WK FHQWXU\ r WKH ORQJ VKDGRZ RI D G\LQJ HPSLUH DJDLQVW WKH WXUPRLO RI UHYROXWLRQ DQG WKH SDLQ RI ZDU r KDYH EHHQ GLVFXVVHG DQG GHEDWHG E\ VFKRODUV DQG SROLWLFLDQV IRU PDQ\ \HDUV %XW WKH UROH RI WKH HFRQRP\ r WKH OLIHEORRG RI DQ\ JRYHUQPHQW RI DQ\ LGHRORJ\ DQG DVSLUDWLRQ r LV QR OHVV LPSRUWDQW

7ELOLVL DW WKH WXUQ RI WKH WK FHQWXU\

2QH KXQGUHG \HDUV DJR WKH *HRUJLDQ HFRQRP\ OLNH WKH UHVW RI WKH FRXQWU\ ZDV LQ WUDQVLWLRQ $ WUDGLWLRQDOO\ DJUDULDQ VRFLHW\ LQGXVWU\ DQG IRUHLJQ LQYHVWPHQW GHYHORSHG DORQJ ZLWK WKH UDLOZD\ r LW UHDFKHG IURP %DNX WR %DWXPL r WKDW FRQQHFWHG WKH FRXQWU\nV PLQHV DQG SRUWV &KDQJH ZDV KDSSHQLQJ IDVW DV

,QYHVWRU JH

YDOXDEOH PDQJDQHVH FRDO DQG RLO PDGH LWV ZD\ WKURXJK *HRUJLD DQG DFURVV WKH %ODFN 6HD ,Q KLV ERRN o6RFLDOLVP LQ *HRUJLDQ &RORUV p 6WHSKHQ -RQHV LOOXVWUDWHV WKH LPSDFW RI 3RWL SRUW o-DPHV %U\FH WUDYHOLQJ WKURXJK WKH SRUW LQ WKH V GHVFULEHG 3RWL DV mWKH PRVW PLVHUDEOH WRZQ WKDW D WUDYHOHU ZDV FRQGHPQHG WR KDOW np %XW -RQHV QRWHV WKDW MXVW \HDUV ODWHU 3RWL ZDV KRPH WR RQH RI WKH PRVW LPSRUWDQW SRUWV LQ WKH %ODFN 6HD %\ KH UHSRUWHG DOO PDMRU (XURSHDQ manganese importers had ofямБ FHV LQ 3RWL DQG ZRUNHUV IURP WKURXJKRXW ZHVWHUQ *HRUJLD r DQG RWKHU SDUWV RI the Russian empire тАУ ямВ RFNHG WR WKH FLW\ to ямБ QG MREV 7KH WUDQVIRUPDWLRQ LQ %DWXPL r ямБ QDQFHG E\ WKH 5XVVLDQ HPSLUHnV WKLUVW IRU $]HUL RLO DQG IRUHLJQ LQYHVWPHQW r ZDV MXVW DV GUDPDWLF 0DMRU HPSOR\HUV LQFOXGHG WKH railways, oil reямБ QHULHV DQG IRUHLJQ IDFWRULHV LQFOXGLQJ WKH )UHQFK UXQ 7ROOH VRDS IDFWRU\ DQG =HPPHO PLQHUDO ZDWHU IDFWRU\ -RQHV TXRWHG HVWLPDWHV WKDW WKHUH ZHUH QHDUO\ FUDIW VKRSV LQ 7ELOLVL HPSOR\LQJ RQH RU WZR SHRSOH DQG MXVW XQGHU IDFWRULHV r ZLWK VHYHQ WR HLJKW HPSOR\HHV ,Q D SDWWHUQ WKDW ZRXOG SOD\ RXW UHSHDWHGO\ WKURXJK *HRUJLDnV VXFFHVVLRQ RI JRYHUQPHQWV WKURXJKRXW WKH WK FHQWXU\ HFRQRPLF SROLF\ ZDV GHSHQGHQW RQ WKH JRYHUQPHQWnV VXFFHVV DW DWWUDFWLQJ IRUHLJQ FDSLWDO PRYLQJ JRRGV WR IRUHLJQ PDUNHWV DQG PDQDJLQJ DJULFXOWXUH UHIRUP 7Varist Russia was able to beneямБ W IURP *HRUJLDnV VWUDWHJLF WUDGH URXWHV DQG DW WLPHV DOORZHG WKH HFRQRP\ WR GHYHORS OLPLWHG IRUHLJQ WUDGH RXWVLGH RI WKH HPSLUH 7KH WVDULVW JRYHUQPHQW IDOWHUHG RQ DJULFXOWXUDO UHIRUP KRZHYHU PLUHG LQ ORFDO conямВ LFWV EHWZHHQ *HRUJLDQ SHDVDQWV

DQG QRELOLW\ r DV ZHOO DV LWV RZQ EXUHDXFUDF\ $FFRUGLQJ WR D )UHQFK UHSRUW RQ *HRUJLD r ZULWWHQ LQ SDUW E\ WKH *HRUJLDQ JRYHUQPHQW LQ H[LOH LQ 3DULV r WKH JRYHUQPHQW VWUXJJOHG ZLWK DFFHVV WR FDSLWDO DQG EORFNHG WUDGH URXWHV DV LW VRXJKW WR UHEXLOG WKH FRXQWU\ DV DQ LQGHSHQGHQW QDWLRQ ,Q WKH UHSRUWnV RSHQLQJ OLQHV RQ HFRQRP\ SROLF\ WKH DXWKRUV KLJKOLJKW WKH GLUH SROLWLFDO DQG HFRQRPLF FRQGLWLRQV LQ WKH FRXQWU\ IROORZLQJ LQGHSHQGHQFH :RUOG :DU , VWLOO UDJHG FORVLQJ RII SRWHQWLDO (XURSHDQ PDUNHWV r DQG VXSSRUW 5XVVLD r *HRUJLDnV WUDGLWLRQDO HFRQRPLF SDUWQHU ZDV HQJXOIHG LQ D ELWWHU FLYLO ZDU DQG WKH FRXQWU\ ZDV VWLOO DW ZDU ZLWK 7XUNH\ $OWKRXJK VRFLDO GHPRFUDWV OHG WKH FRXQWU\ 3UHVLGHQW 1RH -RUGDQLD DQG KLV PLQLVWHUV EHOLHYHG WKH *HRUJLDQ HFRQRP\ ZDV QRW UHDG\ IRU VRFLDOLVP ,QVWHDG WKH\ DGRSWHG D SROLF\ WKDW DOORZHG SULYDWH RZQHUVKLS DQG SULYDWHO\ RZQHG ODQG SORWV 7KH JRYHUQPHQW RSHUDWHG VRPH EXVLQHVVHV OLNH WKH UDLOZD\ %RUMRPL JODVV SODQW 7NLEXOL PLQH EXW DOVR VRXJKW LQYHVWPHQW DQG IRUHLJQ FDSLWDO o*HRUJLD WKRXJK ULFK LQ QDWXUDO UHVRXUFHV LV SRRU LQ FDSLWDO &RQVHTXHQWO\ LI WKH JRYHUQPHQW RI *HRUJLD ZDQWHG WR DYRLG H[FHVVLYH H[SORLWDWLRQ RI WKH ZRUNLQJ FODVV ZKLFK ZH REVHUYH QRZ LQ WKH 6RYLHW UHSXEOLFV LW FRXOG RQO\ HQVXUH HFRQRPLF GHYHORSPHQW RI WKH FRXQWU\ E\ VXSSRUWLQJ SULYDWH HQWHUSULVHV DQG DWWUDFWLQJ IRUHLJQ FDSLWDO p WKH UHSRUWnV DXWKRUV ZURWH $ V\VWHP RI EDQNV ZDV GHYHORSHG r LQFOXGLQJ IRUHLJQ EDQN r DQG VRPH IRUHLJQ LQYHVWPHQWV $FFRUGLQJ WR WKH UHSRUW WKH JRYHUQPHQW SDUWQHUHG ZLWK D )UHQFK FRPSDQ\ ZKR LQYHVWHG LQ VLONZRUP EUHHGLQJ )RUHLJQ EXVLQHVV

FKDPEHUV LQFOXGLQJ D )UHQFK *HRUJLDQ &KDPEHU DQG D *HUPDQ *HRUJLDQ &KDPEHU H[LVWHG %XW WKH OLPLWHG IRUHLJQ LQYHVWPHQW and the lack of political тАУ and ямБ QDQFLDO тАУ support, brought the ямВ HGJOLQJ JRYHUQPHQW WR WKH EULQN RI EDQNUXSWF\ The government did, ямБ QDOO\ VHFXUH D ORDQ IURP (XURSHDQ DOOLHV EXW WKH SOHGJH FDPH WRR ODWH DFFRUGLQJ WR WKH UHSRUW тАЬ[The] ямБ QDQFLDO VLWXDWLRQ RI WKH FRXQWU\ ZDV YHU\ JUDYH D ODUJH SDUW RI WKH EXGJHW ZDV FRYHUHG E\ VRIW PRQH\eWKLV KLQGHUHG HFRQRPLF GHYHORSPHQW RI *HRUJLD *HRUJLDQ *RYHUQPHQW r DV VRRQ DV LW FRXOG HVWDEOLVK UHODWLRQVKLS ZLWK WKH :HVWHUQ FRXQWULHV QHJRWLDWHG D ORDQ LQ RUGHU WR HQDEOH WKH FRXQWU\ WR OLYH WKURXJK WKLV WUDQVLWLRQDO SHULRG DQG FRSH ZLWK ямБ QDQFLDO difямБ FXOWLHV 7KLV ORDQ ZDV QRW XVHG EHFDXVH WKH *HRUJLD JRW RFFXSLHG p WKH UHSRUW QRWHV 3URIHVVRU 0DONKD] 0DWVDEHULG]H WKH KHDG RI WKH SROLWLFDO VFLHQFH GHSDUWPHQW DW 7ELOLVL 6WDWH 8QLYHUVLW\ DQG DQ H[SHUW RQ *HRUJLDnV FRQVWLWXWLRQ QRWHG WKDW WKH 'HPRFUDWLF 5HSXEOLF JRYHUQPHQW ZDV IRUFHG WR IRFXV RQ VXUYLYDO r QRW HFRQRPLF SROLF\ ,Q MXVW XQGHU WKUHH \HDUV WKH First Republic made signiямБ FDQW DFKLHYHPHQWV -RQHV QRWHG o>-RUGDQLDnV@ JRYHUQPHQW RUJDQL]HG D VXFFHVVIXO ODQG UHIRUP DGRSWHG FRPSUHKHQVLYH VRFLDO DQG SROLWLFDO OHJLVODWLRQ DQG FXOWLYDWHG ZLGHVSUHDG LQWHUQDWLRQDO WLHV HQDEOLQJ *HRUJLD WR EHFRPH WKH RQO\ 7UDQVFDXFDVLDQ QDWLRQ WR HDUQ GH MXUH UHFRJQLWLRQ IURP 6RYLHW 5XVVLD DQG WKH :HVWHUQ SRZHUV p KH ZURWH o>+LV JRYHUQPHQW@ SOD\HG D FUXFLDO UROH LQ WUDQVIRUPLQJ *HRUJLD LQWR WKH PRGHUQ SROLWLFDO QDWLRQ p )(% 0$5

&217(17

$P&KDP KRVWHG (FRQRP\ 0LQLVWHU 9HUD .REDOLD DW DQ H[FOXVLYH OXQFKHRQ IRU PHPEHUV

$P&KDP %XVLQHVV $VVRFLDWLRQV 0HHW ZLWK 30

$P&KDP 3UHVLGHQW 'DYLG /HH DQG )LUVW 9LFH 3UHVLGHQW 6DUDK :LOOLDPVRQ ZHUH LQYLWHG WR D URXQGWDEOH ZLWK 30 1LND *LODXUL 9HUD .REDOLD 0LQLVWU\ 2SHQ IRU %XVLQHVV

$P&KDP KRVWHG (FRQRP\ 0LQLVWHU 9HUD .REDOLD DW DQ H[FOXVLYH OXQFKHRQ IRU PHPEHUV 3DWURQ 0HPEHU *HRUJH &KLUDNDG]H 9RWHG ´%XVLQHVVPDQ RI WKH <HDU

8*7 3UHVLGHQW DQG $P&KDP 3DWURQ 0HPEHU *HRUJH &KLUDNDG]H ZDV KRQRUHG DW D 'HFHPEHU DZDUG·V FHUHPRQ\ $P&KDP 3UHVLGHQW LQ :DVKLQJWRQ

$P&KDP 3UHVLGHQW 'DYLG /HH PHW ZLWK RIILFLDOV IURP WKH 6WDWH 'HSDUWPHQW 86$,' DQG WKH $WODQWLF &RXQFLO GXULQJ D WULS WR :DVKLQJWRQ '&

81 *OREDO &RPSDFW *HQHUDO $VVHPEO\ DQG &65 0DQXDO /DXQFK

$ PHPEHUV RQO\ VHVVLRQ WR HOHFW WKH VWHHULQJ FRPPLWWHH DQG ODXQFK WKH *HRUJLDQ DQG (QJOLVK ODQJXDJH &65 PDQXDO &HQWUH IRU 6WUDWHJLF 5HVHDUFK DQG 'HYHORSPHQW·V 6XVWDLQDELOLW\ 5HSRUW

7KH WKLQN WDQN SUHVHQWHG WKH SXEOLFDWLRQ RI LWV UHSRUW RQ *HRUJLD·V SURJUHVV DQG VXVWDLQDELOLW\ 5DGLVVRQ %OX 7ELOLVL $ZDUGHG

7KH 5DGLVVRQ %OX 7ELOLVL ZDV KRQRUHG DV WKH %HVW 1HZ +RWHO E\ WKH &HQWUDO $VLD DQG 7XUNH\ +RWHO ,QYHVWPHQW &RQIHUHQFH $P&KDP -RLQV 1HZ 3DUOLDPHQW %XVLQHVV &RXQFLO

$P&KDP ZLOO KDYH D VHDW RQ WKH QHZ EXVLQHVV FRXQFLO ZLWK 6SHDNHU RI 3DUOLDPHQW 'DYLW %DNUDG]H

1HZ 0HPEHUV

$EULV 'LVWULEXWLRQ $* $*9 &]HFK 5HSXEOLF /WG &KkWHDX 0XNKUDQL ZHUH DFFHSWHG DV QHZ PHPEHUV *RYHUQPHQW $GGUHVV

$ OLVW RI LPSRUWDQW DGGUHVVHV DQG FRQWDFWV LQ WKH JRYHUQPHQW $*9 &]HFK 5HSXEOLF /WG 0HPEHU 3URILOH

7KH ILUVW QHZ PHPEHU RI LQWURGXFHV LWV SURGXFWV DQG VHUYLFHV %/& /DZ 2IILFH 7D[ 1HZVOHWWHU

$ EULHI RYHUYLHZ RI FKDQJHV WR WKH WD[ FRGH DQG *HRUJLDQ ODZV IURP 6HSW -DQ 0HPEHU 'LUHFWRU\

$ GLUHFWRU\ RI 3DWURQ &RUSRUDWH $ &RUSRUDWH % DQG 1RQ IRU 3URILW 0HPEHUV DV RI )HEUXDU\ QG *DOD %HQHILW %XUQV 6XSSHU DQG %DOO

7KH HYHQW UDLVHG QHDUO\ WKRXVDQG IRU LPSRUWDQW FKDULWLHV %RDUG RI 'LUHFWRUV

$P&KDP *HRUJLD·V ERDUG RI GLUHFWRUV LQ

)(% 0$5

$P&KDP %XVLQHVV $VVRFLDWLRQV 0HHW :LWK 30 )LUVW 9LFH 3UHVLGHQW 6DUDK :LOOLDP VRQ DQG 3UHVLGHQW 'DYLG /HH UHSUHVHQWHG WKH $PHULFDQ &KDPEHU RI &RPPHUFH DW D PHHWLQJ ZLWK 3ULPH 0LQLVWHU 1LND *LODXUL DQG WKH KHDGV RI WKH RWKHU OHDGLQJ EXVLQHVV DVVRFLDWLRQV RQ :HGQHVGD\ WKH WK -DQXDU\ 7KH SXUSRVH ZDV WR GLVFXVV WKH QHZ EXVLQHVV RPEXGVPDQ SRVLWLRQ DQG WKH JHQHUDO EXVLQHVV FOLPDWH ,Q DGGLWLRQ WR VSHDNLQJ DERXW WKH QHZ SRVLWLRQ WKH WD[ FRGH DQG KLV SODQV for building business conямБ GHQFH WKH 3ULPH 0LQLVWHU OLVWHQHG FDUHIXOO\ WR WKH FRQFHUQV RI WKH EXVLQHVV UHSUHVHQWDWLYHV ,W ZDV PDGH FOHDU DW WKH PHHWLQJ WKDW WKHUH DUH VWURQJ FRQFHUQV UHJDUGLQJ WKH DGPLQLVWUDWLRQ RI WKH WD[ FRGH DQG WKH ODFN RI LQYHVWPHQW IURP ORFDO DQG IRUHLJQ EXVLQHVVHV 7KHVH LVVXHV ZLOO UHTXLUH DOO

3ULPH 0LQLVWHU 1LND *LODXUL

WKH VWDNHKROGHUV WR FR RSHUDWH PRUH IXOO\ in the future to improve conямБ GHQFH DQG WKH 3ULPH 0LQLVWHU KDV SURPLVHG WR KROG UHJXODU PHHWLQJV o, DP HQFRXUDJHG E\ WKH RSHQQHVV RI WKH PHHWLQJ DQG WKH $P&KDP ZLOO FRQWLQXH WR ZRUN FORVHO\ ZLWK WKH *RY HUQPHQW DQG WKH 86 (PEDVV\ WR LPSURYH WKH EXVLQHVV FOLPDWH LQ *HRU JLD DQG WR HQFRXUDJH DGGLWLRQDO )', WKLV \HDU p /HH VDLG o:H FRQVLGHU ODVW )ULGD\n V DSSRLQW PHQW RI *LRUJL 3HUWDLD DV %XVLQHVV 2P EXGVPDQ WR EH D SRVLWLYH PRYH E\ WKH Government to build conямБ GHQFH ZLWK WKH EXVLQHVV FRPPXQLW\ p )RU PRUH LQIRUPDWLRQ SOHDVH FRQWDFW 0V 1LFROH -RUGDQLD H[HFXWLYH GLUHFWRU RU DQ\ PHPEHU RI WKH $P&KDP %RDUG )(% 0$5

9HUD .REDOLD 0LQLVWU\ 2SHQ )RU %XVLQHVV

)(% 0$5

(FRQRPLF 0LQLVWHU 9HUD .REDOLD WROG $P&KDP PHPEHUV WKH PLQLVWU\ LV DOZD\V RSHQ IRU WKHP GXULQJ WKH OXQ FKHRQ DW WKH 7ELOLVL 0DUULRWW RQ 7KXUVGD\ -DQXDU\ o&RPPXQLFDWH ZLWK XV DV PXFK DV SRVVLEOH p VKH VDLG o, KRSH , ZLOO VHH you all on the 12th ямВ RRU RI WKH PLQLVWU\ p 'XULQJ KHU SUHVHQWDWLRQ RQ WKH HFRQRP\ .REDOLD GRZQSOD\HG FRQ cerns over inямВ DWLRQ DQG WKH ORZ OHYHO RI IRUHLJQ GLUHFW LQYHVWPHQW 6KH VDLG WKH JRYHUQPHQW LV SXUVXLQJ D QHZ SROLF\ IRU DWWUDFWLQJ LQYHVWPHQW WKH *HRU JLDQ 1DWLRQDO ,QYHVWPHQW $JHQF\ LV SUHSDULQJ speciямБ F LQYHVWPHQW SURSRVDOV WR VHQG WR EXVLQHVVHV тАЬEvery country in the world is ямБ JKW LQJ IRU WKH VDPH GROODU p VKH VDLG o: H need to be very speciямБ F DERXW ZKDW ZH RIIHU p .REDOLD QRWHG WKDW QHZ HPSKDVLV LV EHLQJ SODFHG RQ FUHDWLQJ D oJUHHQp

HFRQRP\ DQG LQFUHDVLQJ WKH FRXQWU\n V LPSRUW DQG H[SRUW SRWHQWLDO $JULFXOWXUH UHPDLQV D SULRULW\ WKH PLQLVWHU VWUHVVHG DOWKRXJK WKH JRYHUQPHQW LV JRLQJ WR IRFXV RQ GHYHORSLQJ D QLFKH PDUNHW IRU *HRUJLDQ JRRGV o2XU FRQFHUQ LV RQ TXDO LW\ QRW TXDQWLW\ RI SURGXFWV p VKH VDLG 6KH DOVR WROG $P&KDP PHPEHUV WZR QHZ SURMHFWV DUH SODQQHG IRU LQFOXGLQJ D QHZ EXVLQHVV DZDUG WR SUR PRWH LQQRYDWLRQ DQG KLJK VWDQGDUGV ,Q DGGLWLRQ DQ LQWHUQDWLRQDO WUDGH DQG LQYHVWPHQW IRUXP LV EHLQJ SODQQHG IRU ODWHU WKLV \HDU ,Q RWKHU QHZV (UQVW DQG <RXQJ DQ QRXQFHG ZRUNVKRSV RQ WKH QHZ WD[ FRGH DQG WKHLU QHZ ERRNOHW RQ WKH FRGH $P&KDP 3UHVLGHQW 'DYLG /HH LQWURGXFHG WKH &KDPEHUnV QHZHVW PHP EHUV $EULV 'LVWULEXWLRQ ,QF &RPSDQ\ $*9 &]HFK 5HSXEOLF /WG DQG &K┬╝WHDX 0XNKUDQL ZKLFK VSRQVRUHG WKH ZLQH IRU WKH PHHWLQJ

$P&KDP 3UHVLGHQW LQ :DVKLQJWRQ

*HRUJH &KLUDNDG]H 5 VSHDNV ZLWK 8 6 (PEDVV\ &KDUJH G┬╖$IIDLUHV .HQW /RJVGRQ

3DWURQ 0HPEHU *HRUJH &KLUDNDG]H %XVLQHVVPDQ RI WKH <HDU *HRUJH &KLUDNDG]H r DQ $P&KDP SDWURQ PHPEHU DQG WKH SUHVLGHQW RI 8*7 r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

,Q 8*7 opened an ofямБ FH LQ WKH 8QLWHG 6WDWHV DQG FRQWLQXHG WR FUHDWH DQG LPSOHPHQW LQQRYDWLYH SURMHFWV LQ WKH *HRUJLDQ ,7 VHFWRU LQFOXGLQJ D YHQWXUH WR ямБ QDQFH LQQRYDWLYH ,7 LGHDV DQG SURMHFWV LQ *HRUJLD 7KH ZRUNLQJ JURXS RI WKH YHQWXUH IXQG ZLOO UHYLHZ DOO LQWHUHVWLQJ ,7 LGHDV DQG SURMHFWV ,GHDV FDQ EH VXEPLWWHG E\ DQ\ LQGLYLGXDO SHUVRQ RU FRPPHUFLDO RUJDQL]DWLRQ (DFK LGHD SURMHFW ZLOO EH HYDOXDWHG DFFRUGLQJ WR LWV XQLTXHQHVV IX ture prospects and commercial beneямБ WV 8*7 ZDV IRXQGHG LQ 7RGD\ WKH FRPSDQ\ LV RQH RI WKH OHDGLQJ V\VWHP LQWHJUDWRUV DQG VROXWLRQ VXSSOLHUV LQ LQ IRUPDWLRQ DQG FRPPXQLFDWLRQ WHFKQROR JLHV LQ WKH UHJLRQ 8*7nV ZRUN LV PDLQO\ IRFXVHG RQ FRUSRUDWH FOLHQWV DQG SXEOLF RUJDQL]DWLRQV

'DYLG /HH KHOG PHHWLQJV LQ :DVK LQJWRQ ZLWK WKH 86 6WDWH 'HSDUWPHQW 86$,' DQG WKH $WODQWLF &RXQFLO LQ KLV UROH DV 3UHVLGHQW RI WKH $PHUL FDQ &KDPEHU RI &RPPHUFH DQG &KDLUPDQ RI WKH (XUDVLD 3DUWQHUVKLS )RXQGDWLRQ o2Q EHKDOI RI WKH ERDUG RI $P &KDP , PDGH LW FOHDU WKDW ZH UHPDLQ FRPPLWWHG WR ZRUNLQJ FORVHO\ ZLWK WKH *RYHUQPHQW RI *HRU JLD WR LQ FUHDVH LQYHVWPHQW IURP WKH 8QLWHG 6WDWHV WR *HRUJLD DQG ZH ZLOO IRFXV RQ LPSURYLQJ WKRVH LVVXHV RI SROLF\ that damage business conямБ GHQFH p /HH VDLG o, DP GHOLJKWHG WR KDYH IRXQG WKDW *HRUJLD UHPDLQV D FRXQWU\ WKDW :DVKLQJWRQ NQRZV DERXW FDUHV DERXW DQG EHOLHYHV LQ p

127+,1* EXW EH\RQG H[WUDRUGLQDU\ IRU WKH &+,/' $1' (19,5210(17 635,1* *$/$ )5,'$< 0$5&+ $7 7+( /8;85,286 %$*5$7,21, *5$1' +$// $OO SURFHHGV IRU WKH UHQR YDWLRQ RI %HJKXUHEL 2YHUQLJKW 6KHOWHU a 86' ORFDWHG & ( &HQWHU $EDVWXPDQL 6WUHHW 7ELOLVL 5693 RU PRUH LQIRUPD WLRQ FRQWDFW 0LFKHOH 'XQQ PLV V\]RRP#DRO FRP

)(% 0$5

81 *OREDO &RPSDFW 0HPEHUV 2QO\ *HQHUDO $VVHPEO\ DQG 81 *OREDO &RPSDFW &65 0DQXDO /DXQFK 8QLWHG 1DWLRQV *OREDO &RPSDFW 1HWZRUN LQ *HRUJLD KHOG LWV DQQXDO PHHW LQJ RI WKH QHWZRUN RQ 'HFHPEHU DW 5DGLVVRQ %OX ,YHULD +RWHO 7KH PHHWLQJ EURXJKW WRJHWKHU UHSUHVHQWDWLYHV RI *HRU JLDQ FRPSDQLHV DFDGHPLF LQVWLWXWLRQV DQG QRQ JRYHUQPHQWDO RU JDQL]DWLRQV XQLWHG E\ WKH 1HWZRUN $W WKH *HQHUDO $VVHPEO\ WKH PHP EHUV HOHFWHG 6WHHULQJ &RPPLWWHH PHP EHUV IRU WKH WHUP RI WZR \HDUV 7KHLU UROH LV WR KHOS WKH 1HWZRUN DFKLHYH LWV DLPV E\ FDUU\LQJ RXW WKH H[HFXWLYH DQG SROLF\ IXQFWLRQV IRU WKH 1HWZRUN E\ FROODERUDW LQJ FORVHO\ ZLWK WKH 1HWZRUN 6HFUHWDULDW 7KH &RPPLWWHH ZLOO HQGHDYRU WR HQDFW DOO GHFLVLRQV E\ PHDQV RI FRQVHQVXV $V RI 'HFHPEHU WKH *OREDO &RPSDFW *HRU JLD 1HWZRUN 6WHHULQJ &RPPLWWHH LV FRPSULVHG E\ WKH IROORZLQJ LQGLYLGXDOV 0U 6DPVRQ 3NKDNDG]H :LVVRO *HRUJLD 0U 5 0LFKDHO &RZJLOO *HRUJLDQ $PHULFDQ 8QLYHUVLW\ DQG $P&KDP *HRUJLD 0U *LD *YDODG]H %3 *HRUJLD 0U &KULVWLDQ &DUPDJQROOH %DQN 5HSXEOLF 0V ,QLWD 3DXORYLFD 81'3 $IWHU WKH *HQHUDO $VVHPEO\ 7KH 8QLWHG 1DWLRQV 'HYHORSPHQW 3UR JUDPPH 81'3 ODXQFKHG D KDQGERRN :LQLQJ ZLWK ,QWHJULW\ WR DGYLVH *HRUJLDQ EXVLQHVV RQ KRZ WR IRUPXODWH DQG DSSO\ FRUSRUDWH VRFLDO UHVSRQVLELOLW\ &65

SURJUDPPHV The Manual is the ямБ UVW SXE OLFDWLRQ RI LWV NLQG LQ *HRUJLD LW SURYLGHV SUDFWLFDO LQVWUXFWLRQ WR FRPSDQLHV RQ KRZ WR VHW XS DQG LPSURYH WKHLU FRUSRUDWH VRFLDO UHVSRQVLELOLW\ SUDFWLFHV DQG OLVWV QXPHURXV H[DPSOHV RI EHVW SUDFWLFH RQ WKH SDUW RI *HRU JLDQ DQG LQWHUQDWLRQDO FRPSDQLHV ,W LV DOVR GHVLJQHG WR KHOS WKH FLYLO VRFLHW\ RU JDQL]DWLRQV LQ HVWDEOLVK LQJ FROODERUDWLRQ ZLWK WKH SULYDWH VHFWRU 1RWH 7KH *OREDO &RPSDFW *HRUJLD 1HWZRUN LV KRVWHG E\ WKH $PHULFDQ &KDPEHU RI &RPPHUFH 3OHDVH FRQWDFW WKH $P&KDP ofямБ FH IRU GHWDLOV RQ KRZ WR MRLQ WKH *OREDO &RPSDFW QHWZRUN )(% 0$5

3UHVHQWDWLRQ RI &HQWUH IRU 6WUDWHJLF 5HVHDUFK DQG 'HYHORSPHQW RI *HRUJLD┬╖V 6XVWDLQDELOLW\ 5HSRUW 7KH &HQWUH IRU 6WUDWHJLF 5HVHDUFK DQG 'HYHORSPHQW RI *HRUJLD &65'*

SUHVHQWHG WKH SXEOLFDWLRQ RI WKH 6XVWDLQDELOLW\ 5HSRUW 7KH HYHQW WRRN SODFH LQ &RXUW\DUG 0DUULRWW +RWHO )UHHGRP 6TXDUH RQ 'HFHPEHU $V *HRU JLD LV LQFUHDVLQJO\ RULHQ WDWHG WRZDUGV LQWHJUDWLRQ LQWR (XURSHDQ VWUXFWXUHV JUHDWHU LPSRUWDQFH LV DWWDFKHG WR WKH DGRSWLRQ RI ZHVWHUQ YDOXHV DQG VWDQGDUGV r DPRQJ WKHP LV FRQVLGHULQJ VXVWDLQDELOLW\ LVVXHV LQ WKH DFWLYLWLHV RI DOO VHFWRUV DQG SXEOLFO\ FRPPXQLFDWLQJ RQ WKH RU JDQL]DWLRQnV SHUIRUPDQFH LQ WKH HFRQRPLF HQYLURQPHQWDO DQG VRFLDO DUHDV L H VXVWDLQDELOLW\ UHSRUWLQJ

6XVWDLQDELOLW\ UHSRUWLQJ LV WKH SUDF WLFH RI PHDVXULQJ GLVFORVLQJ DQG EHLQJ DFFRXQWDEOH WR LQWHUQDO DQG H[WHUQDO VWDNHKROGHUV IRU RU JDQL]DWLRQDO SHUIRU PDQFH LQ WKUHH DUHDV DVVRFLDWHG ZLWK WKH VXVWDLQDEOH GHYHORSPHQW r HQYLURQPHQ WDO VRFLDO DQG HFRQRPLF ,W SURYLGHV D EDODQFHG DQG UHDVRQ DEOH UHSUHVHQWDWLRQ RI WKH SHUIRUPDQFH RI D UHSRUWLQJ RU JDQL]DWLRQ r LQFOXGLQJ ERWK SRVLWLYH DQG QHJDWLYH FRQWULEXWLRQV $ VXVWDLQDELOLW\ UHSRUW LV D GRFXPHQW

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

/HOD .KRSHULD IURP &65'* KDV PDGH D GHWDLOHG SUHVHQWDWLRQ DQG VKDUHG &65'*nV H[SHULHQFH LQ WKH VSKHUH RI VXVWDLQDELOLW\ UHSRUWLQJ

5DGLVVRQ %OX 7ELOLVL $ZDUGHG %HVW 1HZ +RWHO LQ 5HJLRQ 7KH 5DGLVVRQ %OX ,YHULD 7ELOLVL KDV ZRQ WKH DZDUG RI %HVW 1HZ +RWHO SUHVHQWHG E\ WKH &HQWUDO $VLD DQG 7XUNH\ +RWHO ,QYHVWPHQW &RQIHUHQFH &$7+,& $ MXU\ RI HPLQHQW KRWHO DQG WRXULVP H[SHUWV KDV VHOHFWHG ZKDW KDV EHFRPH WKH OHDGLQJ OX[XU\ KRWHO LQ *HRUJLD IURP DPRQJ DOO UHFHQWO\ RSHQHG KRWHOV LQ WKH &DXFDVXV DQG &HQWUDO $VLDQ UHJLRQ The award will be ofямБ FLDOO\ SUHVHQWHG GXULQJ WKH &$7+,& HYHQW ZKLFK WDNHV SODFH LQ ,VWDQEXO IURP WR )HEUXDU\

$P&KDP -RLQV 1HZ 3DUOLDPHQW %XVLQHVV &RXQFLO 0HPEHUV RI $P&KDP ZLOO KDYH D YRLFH RQ WKH QHZ SDUOLDPHQWDU\ EXVLQHVV FRXQFLO

2Q -DQXDU\ =XUDE 0HOLNLVKYLOL WKH KHDG RI WKH SDUOLDPHQW %XGJHW DQG )LQDQFH &RPPLWWHH PHW ZLWK $P&KDP 3UHVLGHQW 'DYLG /HH )LUVW 9LFH 3UHVLGHQW 6DUDK :LO OLDPVRQ 9LFH 3UHVLGHQW DQG 7UHDVXUHU 0LFKDHO &RZJLOO %RDUG 0HPEHU 7HG -RQDV DQG ([HFXWLYH 'LUHFWRU 1LFROH -RUGDQLD 3DUOLDPHQW 6SHDNHU 'DYLW %DNUDG]H LQYLWHG $P&KDP WR MRLQ WKH FRXQFLO LQ -DQXDU\

$*9 &]HFK 5HSXEOLF /WG

&KDWHDX 0XNKUDQL -6&

$EULV 'LVWULEXWLRQ ,QF &RPSDQ\ ZDV IRXQGHG LQ DQG LV D OHDGHU LQ WKH GLVWULEX WLRQ RI LQIRUPDWLRQ WHFKQRORJ\ DQG WHOHFRP PXQLFDWLRQV LQ WKH WHUULWRU\ RI &,6 FRXQWULHV DQG 0RQJROLD 'HDOHU 1HWZRUN RI $EULV 'LVWULEXWLRQ ,QF VSUHDGV RYHU 8]EHNLVWDQ .D]DNKVWDQ .\UJ\]VWDQ 7DMLNLVWDQ 7XUN PHQLVWDQ $IJKDQLVWDQ 0RQJROLD DQG 7UDQV FDXFDVLD UHJLRQ $EULV 'LVWULEXWLRQ ,QF KDV the head ofямБ FH LQ 86$and the branch ofямБ FHV LQ .D]DNKVWDQ $OPDW\ *HRU JLD 7ELOLVL

and is going to set ofямБ FH LQ 8$( 'XEDL

7KDW DOORZV WKH FRPSDQ\ WR DGGUHVV RSHUDWLQJ LVVXHV DQG PDLQWDLQ WKH LQWHQVLW\ RI EXVLQHVV GHYHORSPHQW LQ VWUDWHJLF LPSRUWDQW UHJLRQV ZZZ DEULVGF FRP

$*9 &]HFK 5HSXEOLF /WG LV D FRPSDQ\ built on many years experience with ямБ QDQFLDO PDUNHWV RI WKH IRXQGHUV DQG ULFK H[SHULHQFH of leading ямБ QDQFLDO LQVWLWXWLRQV $OVR D ZLGH UDQJH RI H[WHUQDO FROODERUDWRUV ZKR DUH DPRQJ WKH PRVW KLJKO\ UHJDUGHG HFRQRPLF H[SHUWV VHUYH DV D JXDUDQWHH RI TXDOLW\ 7KH LGHD RI $*9 &]HFK 5HSXEOLF LV WR SURYLGH ORQJ WHUP FRPSUHKHQVLYH DQG SURIHVVLRQDO ямБ QDQFLDO VHUYLFH RI WKH KLJKHVW SRVVLEOH OHYHO WR FRUSRUDWH DQG SULYDWH FOLHQWV LQ *HRUJLD ZZZ DJY F]HFK FRP

6LQFH &K┬╝WHDX 0XNKUDQL KDV EHHQ SURGXFLQJ VWLOO DQG VSDUNOLQJ *HRUJLDQ ZLQHV EDVHG RQ WKH DQFLHQW WUDGLWLRQV RI WKH 0XNKUDQL IDPLO\ 7KH FRPSDQ\ GLVWULEXWHV LWV RZQ SURGXFW DV ZHOO DV LPSRUWHG DOFR KROLF SURGXFWV &K┬╝WHDX 0XNKUDQL ZLQHV DUH H[SRUWHG DEURDG DV ZHOO ,Q DGGLWLRQ WR ZLQH SURGXFWLRQ &K┬╝WHDX 0XNKUDQL SURYLGHV ZLQH WRXUV D VSD DQG D EUDQGHG ZLQH ERXWLTXH LQ 2OG 7ELOLVL ZZZ PXNKUDQL FRP

&RUSRUDWH % 0HPEHU

&RUSRUDWH % 0HPEHU

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

)(% 0$5

1(: 0(0%(56

$EULV 'LVWULEXWLRQ $*

:H GR QRW DVN ZKDW \RX FDQ JLYH XV EXW UDWKHU ZKDW ZH FDQ GR IRU \RX $*9 &]HFK 5HSXEOLF KDV EHFRPH the ямБ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his is because the ямБ QDO SULFH TXRWHG LV DOZD\V WKDW RI WKH SURGXFW ZLWK WKH FRP PLVVLRQ DGGHG RQ WRS :KR LQ WRGD\n V ZRUOG ZRXOG ZDQW WR SD\ PRUH WKDQ LV DEVROXWHO\ QHFHVVDU\" $*9 &]HFK 5HSXEOLF ZRUNV LQ D GLIIHUHQW PDQQHU ,W LV QRW D PLGGOH PDQ DQG WKHUHIRUH GRHV QRW VWDQG RQ WKH VLGH RI WKH LQVXUDQFH FRPSDQLHV 7KH FRPSDQ\ UHSUHVHQWV DQG GHIHQGV LWV FOLHQWV DW PRPHQWV ZKHQ WKH\ QHHG WR FKRRVH WKH EHVW LQVXUDQFH EXW DOVR DW WLPHV ZKHQ WKH\ QHHG WR VROYH D JLYHQ SUREOHP /LIH VRPHWLPHV EULQJV RXW WKH XQIRUHVHHQ DQG GLVHDVH LQMXULHV accidents or ямБ UHV DUH UHDOLVWLF HYHQWV IRU ZKLFK LW LV DGYLVDEOH WR EH SUHSDUHG 7R EH SUHSDUHG RQH KDV WR KDYH D JRRG DQG UHOLDEOH SDUWQHU DW KDQG 7KLV LV SUHFLVHO\ ZKHQ DQG ZK\ $*9 &]HFK 5HSXEOLF LV DW \RXU GLVSRVDO )(% 0$5

0RVW RI $*9 &]HFK 5HSXEOLFn V FOLHQWV DUH IRUPHG E\ PHGLXP VL]HG DQG ODUJH RUJDQL]DWLRQV RSHUDWLQJ LQ *HRUJLD DQG WKH JUHDW PDMRULW\ KDYH oWKHLUp LQVXU DQFH FRPSDQ\ DOUHDG\ $W WKH VDPH WLPH KRZHYHU RQO\ D KDQGIXO DUH FHUWDLQ WKDW WKH\ DUH UHFHLYLQJ WKH EHVW DQG PRVW DG YDQWDJHRXV VHUYLFHV 7KH PDLQ UHDVRQ LV SULPDULO\ WKH IDFW WKDW PRVW FRPSDQLHV GR QRW DQG FDQQRW KDYH HQRXJK WLPH WR PRQLWRU QHZ LQVXUDQFH SURGXFWV WKDW DU ULYH RQ WKH *HRUJLDQ PDUNHW DOPRVW RQ D GDLO\ EDVLV QRU GR WKH\ NQRZ ZKHWKHU WKH monthly insurance ямБ gures are reямВ HFWLYH RI WKH FXUUHQW VLWXDWLRQ *URZLQJ FRPSH WLWLRQ LV SXVKLQJ GRZQ WKH SULFHV RI WKH SURGXFWV HYHQ IXUWKHU :K\ SD\ PRUH ZKHQ RQH GRHV QRW KDYH WR" $ ODUJH SURE lem in the ямБ HOG DUH WKH FRQWUDFWV EHWZHHQ WKH FOLHQW DQG WKH LQVXUDQFH FRPSDQLHV ,Q WKH YDVW PDMRULW\ RI FDVHV WKH\ GR QRW PHHW WKH EDVLF SURWHFWLRQ VWDQGDUG GXH WR WKH IDFW WKDW WKH\ LQFOXGH DPELJXRXV IRUPXODWLRQV DQG GR QRW FRYHU DOO WKH insurance risk ямБ HOGV WKDW WKH\ VKRXOG +RZ WKHQ GRHV WKH FRRSHUDWLRQ ORRN EHWZHHQ WKH FOLHQW DQG $*9 &]HFK 5HSXEOLF" 7KH ямБ UVW W\SH RI FRRSHUDWLRQ $*9 &]HFK 5HSXEOLF ZLWK WKH KHOS RI D 3RZHU RI $WWRUQH\ VLPLODU WR WKDW RI ODZ\HUV FRQWDFWV WKH FOLHQWn V LQVXU DQFH FRPSDQ\ DQG EHJLQV QHJRWLDWLRQV $PHQGPHQWV WR WKH FRQWUDFWV LQVXUDQFH FRQGLWLRQV DQG LQ PRVW FDVHV ORZHU LQVXU DQFH SD\PHQWV DUH DFKLHYHG ,Q (XURSHDQ Union countries, the proямБ W RI LQVXUDQFH FRPSDQLHV YDULHV DQ\ZKHUH IURP ,Q *HRUJLD LW LV QRW XQFRPPRQ IRU WKLV ILJXUH WR UHDFK PRUH WKDQ 7KLV DOORZV IRU PDMRU SRWHQWLDO DQG FRVW VDYLQJ PHDVXUHV WR ORZHU WKH LQVXUDQFH SD\PHQWV $*9 &]HFK 5HSXEOLF IXUWKHU KHOSV FOLHQWV ZLWK WKH DGPLQLVWUDWLRQ FRQQHFWHG ZLWK LQVXUDQFH FRQWUDFWV DQG WKHQ DV D VXSHUYLVRU EHFRPHV SDUW RI D SRWHQWLDO SURFHVV RI OLTXLGDWLRQ RI LQVXU DQFH FODLPV 7KH VHFRQG W\SH RI FRRSHUDWLRQ $*9 &]HFK 5HSXEOLF \HW DJDLQ ZLWK WKH KHOS

RI D 3RZHU RI $WWRUQH\ DUUDQJHV IRU FOL HQWV ZKRVH FRQWUDFWV KDYH HQGHG RU GR QRW \HW KDYH RQH D WUDQVSDUHQW WHQGHU ,Q LW DORQJ ZLWK WKH FOLHQW WKH EHVW LQVXU DQFH FRPSDQLHV DUH FKRVHQ HQVXULQJ WKDW WKH PRVW VXLWDEOH SURGXFWV DUH FKRVHQ contractual matters resolved and ямБ QDOO\ WKDW WKH FRQWUDFW LV PRQLWRUHG DQG FDWHUHG IRU WKURXJKRXW LWV HQWLUH OLIHWLPH 7KH PDLQ DGYDQWDJH IRU $*9 &]HFK 5HSXEOLFnV FOLHQWV LV WKH IDFW WKDW WKH\ GR QRW QHHG WR SD\ IRU DQ\ RI WKHVH VHUYLFHV 2XU VSHFLDOLVW LQVXUDQFH DQDO\WLFV DQG ODZ\HUV DUH DYDLODEOH WR FOLHQWV RQ D KRXU EDVLV :KR ZLOO HQG XS SD\LQJ IRU LW" 6XUH $*9 &]HFK 5HSXEOLF LV QRW D FKDULW\ RUJDQL]DWLRQ HYHQ WKRXJK FKDULWLHV DUH ямБ QDQFLDOO\ VXSSRUWHG E\ WKH FRPSDQ\

$*9 &]HFK 5HSXEOLF ZLOO HQVXUH WKDW LWV FRPPLVVLRQ LV GHGXFWHG GLUHFWO\ IURP WKH LQVXUDQFH FRPSDQ\ ZLWK ZKLFK WKH FOLHQW KDV FKRVHQ WR FRRSHUDWH ,W LV FOHDU WKDW LQVXUDQFH FRPSDQLHV GR QRW ZLVK WR SDUW with the proямБ WV HLWKHU ZLWK WKH FOLHQW RU ZLWK $*9 &]HFK 5HSXEOLF $W WKH HQG RI QHJRWLDWLRQV WKH\ DUH JHQHUDOO\ KDSS\ WR DFFHSW WKH WHUPV LQ YLHZ RI QHZ DQG ORQJ WHUP FOLHQWV DQG SDUWQHUV 7KLV DSSOLHV HYHQ PRUH JLYHQ WKH IDFW WKDW WKH FOLHQWV WKDW $*9 &]HFK 5HSXEOLF UHSUHVHQWV DUH some of the most signiямБ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

/HJDO 1HZV /HWWHU 6HSWHPEHU -DQXDU\

7D[ &XVWRPV $ QHZ 7D[ &RGH RI *HRUJLD HQWHUHG LQWR HIIHFW IURP -DQXDU\ ,W FRP ELQHV WKH WD[ DQG FXVWRPV FRGHV 6LQFH the tax card of a taxpayer will reямВ HFW DOO KLV WD[ DQG FXVWRPV OLDELOLWLHV WKH WD[SD\HU ZLOO EH DEOH WR DOORFDWH WD[ EDO DQFHV EHWZHHQ WD[ DQG FXVWRPV FKDUJHV DV GHHPHG DSSURSULDWH 0RVW LPSRUWDQWO\ WD[SD\HU ZKRVH 9$7 WD[DEOH WXUQRYHU IRU DQ\ FRQWLQX RXV PRQWK SHULRG GRHV QRW H[FHHG *(/ ZLOO EH H[HPSW IURP DQ\ WD[ SURYLGHG LW LV UHJLVWHUHG DV D WD[SD\HU ZKHUHDV D WD[SD\HU ZKRn V WXUQRYHU LV EHWZHHQ *(/ *(/ DQG GRHV QRW HPSOR\ PRUH WKDQ SHRSOH will pay a single tax at a ямБ [HG SHUFHQWDJH RI WKH WRWDO WXUQRYHU $QRWKHU QRYHOW\ LQWURGXFHG LV WKDW WKH UXOLQJ LVVXHG E\ WKH WD[ LQVSHFWLRQ RQ D TXHVWLRQ UHIHUUHG E\ D WD[SD\HU VKDOO EH ELQGLQJ RQ WKH WD[ LQVSHFWLRQ DQG WKXV FDQ EH UHOLHG XSRQ E\ WKH WD[SD\HU LQ RUGHU WR GHWHUPLQH WKH WD[ WUHDWPHQW RI DQ\ PDWWHU 1HZ UXOHV DGGUHVV WR UHODWHG party transactions to deямБ QH WKH WUDQVDF WLRQ SULFH IRU WD[DWLRQ SXUSRVHV 7KH FRQFHSW RI oVHUYLFH H[SRUWp VXEMHFW WR 9$7 WD[DWLRQ ZDV DOVR LQWURGXFHG E\ QHZ 7D[ &RGH 8QGHU WKH QHZ 7D[ &RGH WKH LQ FRPH WD[ UDWH ZLOO EH UHGXFHG WR E\

-DQXDU\ 7D[ UHSRUWLQJ SHULRG IURP PRQWKO\ SDLG WD[HV ZLOO FKDQJH WR D TXDUWHU 1HZ 7D[ &RGH IXUWKHU LQWURGXFHV D QRWLRQ RI 6SHFLDO 7UDGH =RQH r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deямБ QLQJ WKH PDQGDWRU\ QRQ FDVK VHWWOHPHQW SURFHGXUH $FFRUGLQJ WR WKH QHZ UXOH LI LPPRY DEOH SURSHUW\ LV DFTXLUHG WKURXJK WKH VDOH SXUFKDVH DJUHHPHQW WKH SXUFKDVH SULFH VKDOO EH SDLG E\ PHDQV RI ZLUH WUDQVIHU WKURXJK FRPPHUFLDO EDQNV XQOHVV WKH SXUFKDVH SULFH LV SDLG LQ LQ VWDOOPHQWV

0DQGDWRU\ 5HJLVWUDWLRQ 5XOHV 3XEOLF 5HJLVWU\ 2Q 'HFHPEHU DPHQGPHQWV ZHUH LQWURGXFHG WR WKH /DZ RI *HRU JLD RQ 3XEOLF 5HJLVWU\ WKDW VWLSXODWH DJUHH PHQWV HQWHUHG LQWR E\ OHJDO SHUVRQ RI SULYDWH ODZ L H DQ\ HQWLW\ UHJDUGOHVV ZKHWKHU FRPPHUFLDO RU QRQ FRPPHUFLDO

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plicant must be veriямБ DEOH EDVHG RQ WKH GDWD PDLQWDLQHG E\ WKH &LYLO 5HJLVWU\ $JHQF\ ZKLFK PHDQV WKDW WKH DSSOLFDQW PXVW HLWKHU EH D FLWL]HQ RI *HRU JLD RU KROG *HRUJLDQ UHVLGHQFH FDUG UHJDUGOHVV ZKHWKHU SHUPDQHQW RU WHPSRUDU\ )(% 0$5

$P&KDP &RPSDQ\ 0HPEHUV DV RI )HEUXDU\ 3$7521 0(0%(56 %3 ([SORUDWLRQ *HRUJLD 6DEXUWDOR 6W 7HO )D[ ZZZ ES FRP ([[RQ $]HUEDLMDQ /WG /DQGPDUN 6XLWH 1L]DPL 6W %DNX $= $]HUEDLMDQ 7HO )D[

ZZZ H[[RQPRELO FRP 3ULFHZDWHUKRXVH&RRSHUV %DPELV 5LJL 6W 7HO )D[ ZZZ SZFJOREDO FRP 8*7 D &KDYFKDYDG]H $Ye., 7th ямВ RRU 7HO )D[ ZZZ XJW JH

&25325$7( $ 0(0%(56

&DXFDVLD 7UDGLQJ 5/7 Navtlugi St., OfямБ FH 7HO )D[ ZZZ FDXFDVLDWUDGLQJ FRP

*7 *URXS % &KRORNDVKYLOL 6W 7HO ZZZ JWJURXS JH

3UR&UHGLW %DQN $JPDVKHQHEHOL $YH 7HO )D[ ZZZ SURFUHGLWEDQN JH

&DXFDVXV 8QLYHUVLW\ 77 Kostava St., Bld.6, 4th ямВ 7HO )D[ ZZZ FX HGX JH

+6%& %DQN *HRUJLD -6& 5XVWDYHOL $YH 7HO ZZZ KVEF FRP

5DGLVVRQ %/8 ,YHULD +RWHO 5RVH 5HYROXWLRQ 6T 7HO )D[ ZZZ UDGLVVRQEOX FRP

,EHULD 5HIUHVKPHQWV -6& 7HWUL .KHYL +HVL 'LVWULFW 2UNKHYL 7HO )D[ ZZZ SHSVL JH

6DOIRUG *HRUJLD /HVHOLG]H 6W 7HO )D[ ZZZ VDOIRUG FRP JH

,PHGL / ,QWHUQDWLRQDO &KDYFKDYDG]H $YH 7HO )D[ ZZZ LPHGL O FRP JH

6($&25 (QYLURQPHQWDO 6HUYLFHV ,QWHUQDWLRQDO 6(6,

.KYLFKLD 6W 7HO ZZZ VHV VHDFRUKROGLQJV FRP

&KDUWLV (XURSH 6 $ *HRUJLD %UDQFK %DPELV 5LJL 6W 7HO )D[ ZZZ FKDUWLVLQVXUDQFH FRP &KHPRQLFV ,QWHUQDWLRQDO D 1 5DPLVKYLOL 6W 7HO )D[ ZZZ FKHPRQLFV FRP 'HORLWWH D / $VDWLDQL 6W 7HO )D[ ZZZ GHORLWWH JH

$%5,6 'LVWULEXWLRQ $* /LXEOLDQD 6W 7HO ZZZ DEULVGF FRP

'LSORPDW *HRUJLD .DNKHWL +LJKZD\ 7HO ZZZ GLSORPDW JH

$GYDQFHG (QJLQHHULQJ $VVRFLDWHV *HRUJLD $SW .LSVKLG]H 6W 7HO )D[ ZZZ DHDL JH

'/$ 3LSHU *HRUJLD /3 0HOLNLVKYLOL 6W 7HO )D[ ZZZ GODSLSHU FRP

$OOLDQFH *URXS +ROGLQJ -6& 0 .RVWDYD 6W 7HO )D[ ZZZ DJK JH $YRQ &RVPHWLFV *HRUJLD //& 7VHUHWHOL $YH 7HO )D[ ZZZ DYRQ FRP ) + %HUWOLQJ *HRUJLD /WG 7DUNKQLVKYLOL 6W 7HO )D[ ZZZ EHUWOLQJ FRP %HWV\┬╢V +RWHO 3URVSHURV %RRNV 0DNDVKYLOL 6W 5XVWDYHOL $YH 7HO )D[ ZZZ EHWV\VKRWHO FRP JH %RR] $OOHQ +DPLOWRQ ,QF %DPELV 5LJL 6W 7HO )D[ ZZZ ERR]DOOHQ FRP %ULWLVK $PHULFDQ 7REDFFR 9D]KD 3VKDYHOD $YH 7HO )D[ ZZZ EDW FRP &DWRQL &R *HRUJLD /HVLD 8NUDLQND 6W $SW 7HO )D[ ZZZ KDSDJ OOR\G FRP

)(% 0$5

(QHUJ\ ,QYHVW -6& 0VKYLGRED 6W 5XVWDYL 7HO )D[ ZZZ HQHUJ\LQYHVW JH (UQVW <RXQJ /HVHOLG]H 6W 7HO )D[ ZZZ JH H\ FRP *HRUJLDQ $PHULFDQ 8QLYHUVLW\ D &KDYFKDYDG]H $YH G $UFK 7HO )D[ ZZZ JDX JH

.30* &,6 /WG 7ELOLVL %UDQFK UG )ORRU %HVLNL %XVLQHVV &HQWHU %HVLNL 6W 7HO )D[ ZZZ NSPJ JH

6($) 0DQDJHPHQW //& 1LNR 1LNRODG]H 6W ,, )ORRU 7HO )D[ ZZZ VHDI JH

/HYRQ 7UDYHO &KDYFKDYDG]H $YH 7HO )D[ ZZZ OHYRQWUDYHO JH

6KHUDWRQ 0HWHFKL 3DODFH +RWHO 7HODYL 6W 7HO )D[ ZZZ VKHUDWRQ FRP WELOLVL

0DHUVN *HRUJLD //& .KHWDJXURY 6W 7HO )D[ ZZZ PDHUVNOLQH FRP

7 . 5HVWDXUDQWV 0F'RQDOG┬╢V *HRUJLD

']PHEL .DNDEDG]H 6W 7HO )D[ ZZZ PFGRQDOGV JH

0DJWLFRP -LNLD 6W 7HO )D[ ZZZ PDJWLFRP JH 0DUULRWW +RWHOV 5HVRUWV 6XLWHV 5XVWDYHOL $YH 7HO )D[ ZZZ PDUULRWW FRP 0HWURPHGLD ,QWHUQDWLRQDO *URXS 7RZHU 3RLQW 'U &KDUORWWH 1&

7HO )D[ ZZZ PHWURPHGLD JURXS FRP

7%& *URXS 0DUMDQLVKYLOL 6W 7HO )D[ ZZZ WEF FRP JH 7%6& &RQVXOWLQJ 0DUMDQLVKYLOL 6W 7HO )D[ ZZZ WEVF JH

&25325$7( % 0(0%(56

0LFURVRIW *HRUJLD //& 0DUMDQLVKYLOL 6W 7HO ZZZ PLFURVRIW FRP

$*9 &]HFK 5HSXEOLF /WG ' *DPUHNHOL 6W 7HO )D[ ZZZ DJY F]HFK FRP

*HRUJLDQ $XGLW &RQVXOWLQJ &RPSDQ\ .RVWDYD 6W 6XLWH 7HO )D[ ZZZ JDFF FRP JH

0RWRUROD *DPUHNHOL 6W 7HO )D[ ZZZ PRWRUROD FRP

$OLDQFH *HRUJLD /WG 6DPXU]DNDQR 6W 7HO ZZZ JURXSDOLDQFH FRP

*07 *URXS )UHHGRP 6TXDUH 7HO )D[ ZZZ JPW JH

06' 6FKHULQJ 3ORXJK &HQWUDO (DVW $*

. $ENKD]L 6W 7HO ZZZ PHUFN FRP

$OLRQL +ROGLQJ &RPSDQ\ D .D]EHJL $YH 7HO )D[ ZZZ DOLRQL JH

*UHFR *URXS 1XWVXELG]H 6W 7HO )D[ ZZZ JUHFR JH

3KLOLS 0RUULV /HVHOLG]H 6W 0HLGDQ 3DODFH 7HO )D[ ZZZ SKLOLSPRUULVLQWHUQDWLRQDO FRP

*= $PHULFDQ $FDGHP\ LQ 7ELOLVL D &KDYFKDYDG]H $YH 7HO )D[ ZZZ DDW JH

%DJHEH\ &LW\ *URXS E &KDYFKDYDG]H $YH 7HO )D[ ZZZ EDJHEH\FLW\ FRP %DNHU 7LOO\ *HRUJLD /WG 0HLGDQ 3DODFH .RWH $ENKD]L 6W 7HO )D[ ZZZ EDNHUWLOO\LQWHUQDWLRQDO FRP %DQN RI *HRUJLD 3XVKNLQ 6W 7HO )D[ ZZZ ERJ FRP JH %DQN 5HSXEOLF *U $EDVKLG]H 6W 7HO )D[ ZZZ UHSXEOLF JH %DVLV %DQN -6& .HWHYDQ 7VDPHEXOL $YH 7HO )D[ ZZZ EDVLVEDQN JH %DWXPL 2LO 7HUPLQDO *07 3OD]D )UHHGRP 6T 7HO )D[ ZZZ EDWXPLSRUW FRP %'2 //& .D]EHJL $YH 7HO )D[ ZZZ EGR JH %* &DSLWDO &KDYFKDYDG]H $Ye, 3rd ямВ 7HO )D[ ZZZ EJFDSLWDO JH %*, $GYLVRU\ 6HUYLFHV *HRUJLD 5XVWDYHOL $Ye., II ямВ 7HO )D[ ZZZ EJL JH BLC Law OfямБ FH *XGLDVKYLOL 6T 7HO )D[ ZZZ EOF JH &DVLQR $GMDUD 0D\ 6T 7HO )D[ ZZZ FDVLQRDGMDUD FRP &DXFDVXV 2QOLQH //& 9DMD 3VKDYHOD $YH 7HO )D[ ZZZ FDXFDVXV QHW &KkWHDX 0XNKUDQL - 6 & 0XNKUDQL 0WVNKHWD 7HO ZZZ PXNKUDQL FRP &LWDGLQHV $SDUW┬╢+RWHO )UHHGRP 6T 7HO )D[ ZZZ FLWDGLQHV FRP HQ JHRUJLD WELOLVL IUHHGRPBVTXDUH KWPO

'HYHORSPHQW 6ROXWLRQV //& 5XVWDYHOL $YH 7HO )D[ ZZZ GV FRP JH

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hartava St, 2nd ямВ 6XLWH 7HO )D[ ZZZ JOREDOLQNOOF FRP *RVVHOLQ *HRUJLD 0 ' 'LGL 'LJRPL 7HO )D[ ZZZ JRVVHOLQJURXS HX .RU 6WDQGDUG %DQN -6& &KDYFKDYDG]H $YH 7HO )D[ .XWDLVL )UHH =RQH *HRUJLDQ ,QW O +ROGLQJ /WG 6KLR 0JYLPHOL 6W 7HO )D[ /LEHUW\ %DQN -6& &KDYFKDYDG]H $YH 7HO )D[ ZZZ OLEHUW\EDQN JH 0DGQHXOL -6& .D]EHJL 6WUHHW 7HO H[W ZZZ PDGQHXOL JH 0HGL&OXE*HRUJLD 7DVKNHQW 6W 7HO )D[ ZZZ PFJ FRP JH

0JDOREOLVKYLOL .LSLDQL ']LG]LJXUL 0.' /DZ )LUP 6XLWH ,9 )ORRU 9DMD 3VKDYHOD $YH 7HO )D[ ZZZ PNG ODZ JH 0LQD -6& *DPUHNHOL 6W 7HO )D[ ZZZ PLQD FRP JH

7ELOLVL $LUSRUW &LW\ %DPELV 5LJL 7HO )D[ 7HOLDQL 9DOOH\ -6& 0DUVKDO *HORYDQL $YH 7HO )D[ ZZZ WHOLDQLYDOOH\ FRP 9' &DSLWDO .RVWDYD 6W 7HO )D[

1DYLJDWRU /WG 3XEOLVKLQJ +RXVH $QWRQ .DWDOLNRVL 6W 7HO ZZZ QDYLJDWRU JH

97% %DQN *HRUJLD 8]QDG]H 6W 7HO )D[ ZZZ YWE FRP JH

1HZ 6FKRRO ,QW O +RXVH 7VNQHWL +LJKZD\ %DJHEL 7HO ZZZ QHZVFKRROJHRUJLD FRP

:LPP %LOO 'DQQ *HRUJLD /WG 9LOODJH 3RQLFKDOD 7ELOLVL 7HO ZZZ ZEG UX

1,%$ ,QYHVW 7DEXNDVKYLOL 6W 7HO ZZZ QLED FRP JH OriямВ DPH *HRUJLD 8]QDG]H 6W 7HO )D[ ZZZ.oriямВ DPH JH 2YHUDOO 0DQDJHPHQW *URXS 20* ,QF 0 -DYDNKLVKYLOL 6W 7HO )D[ 3RWL 6HDSRUW &RUSRUDWLRQ ' $JKPDVKHQHEHOL 6W 3RWL 7HO )D[ ZZZ SRWLVHDSRUW FRP 3XEOLFLV +HSWD .XFKLVKYLOL 6W 7HO )D[ ZZZ SXEOLFLVKHSWD FRP 5DNHHQ 'HYHORSPHQW //& %DUDWDVKYLOL 6W 7HO )D[ ZZZ UDNHHQ JH 5HQWDOV /WG 5XVWDYHOL $YH 7HO ZZZ UHQWDOV JH 5RPSHWURO *HRUJLD /WG 6DQDSLUR 6W 7HO )D[ ZZZ URPSHWURO FRP 6LONQHW /WG 7VLQDPG]JYULVKYLOL 6W 7HO ZZZ VLONQHW FRP 6WDWRLO $]HUEDLMDQ $6 7KH /DQGPDUN %XLOGLQJ 1L]DPL 6WUHHW %DNX $= 7HO )D[

ZZZ VWDWRLO FRP

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

)(% 0$5

62&,$/ 3$*( QG *DOD %HQHILW %XUQV 6XSSHU DQG %DOO ZDV HYHQ PRUH VXFFHVVIXO WKDQ ODVW \HDU·V ZLWK DURXQG JXHVWV IURP WKH EXVLQHVV DQG GLSORPDWLF FRPPXQLWLHV HQMR\LQJ D JRXUPHW FRXUVH PHDO ZDVKHG GRZQ ZLWK ZLQH DQG ZKLVN\ )ROORZLQJ WKH HQWHUWDLQLQJ VSHHFKHV DXFWLRQ DQG UDIIOH SHRSOH GDQFHG WKH QLJKW DZD\ RQ D IXOO GDQFH IORRU XQWLO DP %HQHILFLDULHV 7KH HYHQW UDLVHG DSSUR[LPDWHO\ *H/ IRU WKH WKUHH EHQHILFLDULHV ² 'RJ 2UJDQL]DWLRQ *HRUJLD WKH 7ELOLVL ,:$ ZLWK LWV $,6, ¶6XQULVH· SURMHFW JLYLQJ GLVDEOHG \RXWK YRFDWLRQDO WUDLQLQJ WR KHOS LQWHJUDWH WKHP LQWR VRFLHW\ DQG 5RGG\ 6FRWW )RXQGDWLRQ ZRUNLQJ ZLWK FKLOGUHQ LQ WKH 3DQNLVL 9DOOH\ UHJLRQ

)(% 0$5

)(% 0$5

62&,$/ 3$*( 7KH %XUQV 6XSSHU ZDV VSRQVRUHG E\ .30* EPL $P&KDP .LQG]PDUDXOL 0DUDQL ZLQHV &RFD &ROD $GGLWLRQDO VSRQVRUV GRQDWHG SUL]HV IRU WKH DXFWLRQ DQG WKH UDIIOH EPL 6KHUDWRQ 5DGLVVRQ %HWV\V 0DUULRWW ,066 FOLQLF +( -XGLWK *RXJK WKH %ULVWLVK $PEDVVDGRU &$ *YLQHULD *HRUJLDQ $PHULFDQ 8QLYHUVLW\ 0LFKDHO &RZJLOO +RWHO 7HWQXOGL LQ 0HVWLD 'XWFK 'HVLJQ *DUGHQ %DDQ 7KDL 0DU\ 6KHHKDQ ,D *RJRVKYLOL

)(% 0$5

)(% 0$5

%RDUG 2I 'LUHFWRUV 'DYLG /HH 35(6,'(17 'DYLG /HH LV WKH *HQHUDO 'LUHFWRU RI 0DJWLFRP WKH ODUJHVW WHOHFRPPXQLFDWLRQV RSHUDWRU LQ *HRUJLD DQG WRRN XS KLV SRVLWLRQ 0DUFK 'DYLG LV DOVR WKH &KDLUPDQ RI WKH (XUDVLD 3DUWQHUVKLS )RXQGDWLRQ DQG LV D &KDUWHUHG $FFRXQWDQW ZLWK DQ 0%$ IURP :DUZLFN %XVLQHVV 6FKRRO $ 5XVVLDQ VSHDNHU KH KDV ZRUNHG H[WHQVLYHO\ LQ WKH IRUPHU 8665 DQG served as a Royal Naval OfямБ FHU IRU \HDUV 5 0LFKDHO &RZJLOO 9LFH 3UHVLGHQW 7UHDVXUHU ,Q KLV WK \HDU LQ *HRUJLD 0LFKDHO &RZJLOO LV FXUUHQWO\ WKH 3UHVLGHQW DQG FR IRXQGHU RI *HRUJLDQ $PHULFDQ 8QLYHUVLW\nV EXVLQHVV DQG ODZ VFKRROV LQ 7ELOLVL *HRUJLD

6DUDK :LOOLDPVRQ

)LUVW 9LFH 3UHVLGHQW ,Q 7ELOLVL VLQFH -XQH 6DUDK :LOOLDPVRQ LV WKH FR RZQHU DQG 9LFH 3UHVLGHQW RI 8QLWHG *OREDO 7HFKQRORJLHV 8*7 WKH ODUJHVW ,7 FRPSDQ\ LQ *HRUJLD

,UDNOL %DLGDVKYLOL 'LUHFWRU ,UDNOL %DLGDVKYLOL LV WKH 6HQLRU 9LFH 3UHVLGHQW RI *07 *URXS 7KH FRPSDQ\ LV RQH RI WKH ODUJHVW 86 GLUHFW LQYHVWPHQWV LQ *HRUJLD WKH RZQHU RI WZR 0DUULRWW KRWHOV SURGXFWLRQ IDFLOLW\ 6$17( DQG VHYHUDO PDMRU UHDO HVWDWH VLWHV LQ 7ELOLVL

-RKQ %UDHFNHYHOGW 'LUHFWRU -RKQ %UDHFNHYHOGW DUULYHG LQ *HRUJLD LQ DV WKH *HQHUDO PDQDJHU IRU *266(/,1 LQ WKH &DXFDVXV UHJLRQ ,Q UHFHQW \HDUV -RKQ DOVR VWDUWHG XS D FXVWRPV EURNHUDJH FRPSDQ\ EXLOGLQJ QHZ (XURSHDQ VW\OH ZDUHKRXVH LQ 7ELOLVL IRU IUHLJKW IRUZDUGLQJ VWRUDJH VROXWLRQV DQG FXVWRPV ERQGHG ZDUHKRXVLQJ IRU GLSORPDWLF JRRGV

(VEHQ (PERUJ 'LUHFWRU

9DQR 1DNDLG]H 'LUHFWRU 9DQR 1DNDLG]H LV D ERDUG PHPEHU RI *UHFR *URXS )RXQGHG E\ &DOLIRUQLD EDVHG 6RXWKHUQ 2LO FR LQ *UHFR LV D SLRQHHU $PHULFDQ LQYHVWRU LQ *HRUJLD DQG RQH RI WKH IRXQGLQJ PHPEHUV RI $P&KDP *HRUJLD

%DGUL -DSDULG]H 'LUHFWRU

(VEHQ (PERUJ KDV EHHQ LQ *HRUJLD VLQFH +H KDV ZRUNHG D *HQHUDO 0DQDJHU IRU &DXFDVXV 5HJLRQ IRU &DGEXU\ 6FKZHSSHV DQG 1HVWOH XQWLO 1RZ KH LV ZRUNLQJ DV 3ULQFLSDO 3DUWQHU IRU DQ ,QYHVWPHQW )XQG 6($) WKDW LV FXUUHQWO\ PDQDJLQJ D PLO 86' SRUWIROLR RI LQYHVWPHQWV DOO RYHU *HRUJLD

%DGUL -DSDULG]H KDV EHHQ WKH 'HSXW\ &KDLUPDQ RI WKH 6XSHUYLVRU\ %RDUG RI 7%& %DQN VLQFH DQG WKH 9LFH 3UHVLGHQW RI *HRUJLDQ *ODVV DQG 0LQHUDO :DWHU &R ** 0:

VLQFH

6WHYH -RKQVRQ 'LUHFWRU 6WHYH -RKQVRQ LV WKH SURSULHWRU RI 3URVSHURnV %RRNV DQG WKH *HQHUDO 0DQDJHU RI 7KH +RWHO %HWV\ 3URVSHURnV %RRNV DQG &DOLEDQnV &RIIHH +RXVH LV WKH OHDGLQJ (QJOLVK ODQJXDJH ERRNVWRUH LQ *HRUJLD

7HG -RQDV 'LUHFWRU

,YR %DNKXLM]HQ 'LUHFWRU ,YR %DNKXLM]HQ VSHQW \HDUV LQ WKH PLOLWDU\ RI which as an ofямБ FHU ZLWKLQ WKH DLUERUQH LQIDQWU\ ZLWK PLVVLRQV LQ WKH IRUPHU <XJRVODYLD DQG $IJKDQLVWDQ ,YR KDV EHHQ LQ *HRUJLD VLQFH DV WKH GLUHFWRU RI 'XWFK 'HVLJQ *DUGHQ D VLVWHU FRPSDQ\ RI WKH IDPRXV 'XWFK ODQGVFDSH DUFKLWHFW 0DUWLQ 9HOWNDPS

(ULND 2OVRQ ([ 2IILFLR 0HPEHU (ULND 2OVRQ LV WKH 'HSXW\ 3ROLWLFDO (FRQRPLF Chief, and senior Economic/Commercial OfямБ FHU DW WKH 8 6 (PE 6KH KDV DOVR VHUYHG DW WKH 8 6 (PEDVV\ LQ %LVKNHN .\UJ\]VWDQ 8 6 (PEDVV\ LQ 7Dshkent, Uzbekistan (where she was an ex-ofямБ FR PHPEHU RI WKH $P&KDP %RDUG RI 'LUHFWRUV DQG DW WKH 6WDWH 'HSDUWPHQW LQ :DVKLQJWRQ ' &

%HWV\ +DVNHOO )RXQGLQJ $GYLVRU %HWV\ +DVNHOO LV DQ \HDU UHVLGHQW RI *HRUJLD ZKR VWDUWHG IRXU VXFFHVVIXO EXVLQHVVHV DQG LV FXUUHQWO\ GHYHORSLQJ D UHVRUW KRWHO DQG YLOODV LQ WKH ZLQH FRXQWU\ )RU WKH SDVW \HDUV VKH KDV EHHQ WKH *HRUJLD &RQWUDFWRU IRU 0HWULFD ,QF D 86 7UHDVXU\ 'HSDUWPHQW VXE FRQWUDFWRU

1LFROH -RUGDQLD ([HFXWLYH 'LUHFWRU 1LFROH -RUGDQLD KDV EHHQ D PHPEHU RI $P&KDP *HRUJLD VLQFH 6KH LV WKH IRXQGHU RI 7KH 1R├Г *URXS //& D FRPSDQ\ WKDW SURPRWHV SULYDWH DQG SKLODQWKURSLF LQYHVWPHQWV LQ *HRUJLD ZLWK D YLVLRQ RI VWUHQJWKHQLQJ *HRUJLDnV WLHV ZLWK WKH 86$ 1LFROH KDV D \HDU WUDFN UHFRUG RI EXVLQHVV DQG SURJUDP GHYHORSPHQW DQG PDQDJHPHQW LQ IRXQGD WLRQ FRUSRUDWH DQG JRYHUQPHQW UHODWLRQV LQ WKH 86$ &DXFDVXV UHJLRQ (XURSH DQG 0LGGOH (DVW

)(% 0$5

7HG -RQDV LV WKH 0DQDJLQJ 3DUWQHU RI '/$ 3LSHUnV Tbilisi ofямБ FH +H DGYLVHV FOLHQWV RQ LQWHUQDWLRQDO EXVLQHVV WUDQVDFWLRQV HQHUJ\ DQG LQIUDVWUXFWXUH SURMHFWV JRYHUQPHQW UHODWLRQV DQG GLVSXWH UHVROXWLRQ

)(% 0$5

)(% 0$5