Interview_with_President_and_CEO_EN_2 (31-03-2015)

©6ZLVV HQWUHSUHQHXUV JRLQJ RXW IXUWKHU DQG IXUWKHU LQWR WKH ZRUOG ª ,QWHUYLHZ ZLWK 3UHVLGHQW RI WKH 6XSHUYLVRU\ %RDUG 5XWK 0HW]OHU $UQROG DQG &(2 'DQLHO . QJ

0UV 0HW]OHU 0U . QJ FRXOG \RX SOHDVH UHFDOO WKH ÀQDQFLDO \HDU IRU XV« 5XWK 0HW]OHU $UQROG (DFK \HDU , UHPHPEHU WKH ZLQQHUV RI WKH ([ SRUW $ZDUG ,Q LW ZDV DZDUGHG MRLQWO\ WR 6HQVLOH 7HFKQRORJLHV IRU LWV VXFFHVVIXO H[SDQVLRQ WR 6ZHGHQ DQG WR +DEHJJHU $* ZKLFK KDV PDGH WKH OHDS WR WKH *XOI 6WDWHV ,W ZDV DOVR SOHDVLQJ WKDW ZH ZHUH DEOH WR KROG ©([SRUWHU 'HPDLQ ª LQ /DXVDQQH IRU WKH ÀUVW WLPH LQ 7KLV HYHQW LV WKH 6ZLVV )UHQFK HTXLYDOHQW RI RXU )RUXP IRU 6ZLVV )RUHLJQ 7UDGH DQG ,QYHVWPHQW ZKLFK KDV EHHQ HVWDEOLVKHG LQ =XULFK IRU PDQ\ \HDUV $QG WKHQ WKHUH ZHUH WKH FRXQWOHVV VPDOO SUDFWLFDO HYHQWV ZKLFK VHUYH DV LQVSLUDWLRQ IRU 6ZLVV 60(V 'DQLHO . QJ 2QH ÀJXUH ZKLFK KDV SDUWLFXODUO\ VWD\HG ZLWK PH FRPHV IURP RXU HVWLPDWH RI WKH SRWHQWLDO RI WKH IUHH WUDGH DJUHH PHQW )7$ ZLWK &KLQD ZKLFK HQWHUHG LQWR IRUFH RQ -XO\ WKH 6ZLVV HFRQRP\ FDQ VDYH ELOOLRQ 6ZLVV IUDQFV RQFH DOO RI WKH FXVWRPV UHGXFWLRQV KDYH FRPH LQWR IRUFH LQ $QG WKLV ÀJXUH LV EDVHG RQ D UHDOLVWLF DVVXPSWLRQ RI DQ DQQXDO H[SRUW JURZWK RI SHU FHQW DQG D XWLOL]DWLRQ UDWH RI SHU FHQW

ELOOLRQ ² WKDW VRXQGV LPSUHVVLYH +RZHYHU VXFK DQ DJUHH PHQW FDQ EH YHU\ GHPDQGLQJ DV ZHOO :KDW LV 6 *( GRLQJ WR HQDEOH 60(V ZLWK IHZHU UHVRXUFHV WR EHQHÀ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·V SURVSHULW\ )UHH WUDGH DJUHHPHQWV RSHQ WKH GRRUV

WR QHZ PDUNHWV $QG DFFHVV WR WKH ZRUOG┬╖V PDUNHWV LV HVVHQWLDO IRU RXU 60(V DV LV LQFLGHQWDOO\ EHLQJ RSHQ RXUVHOYHV 'R \RX WKLQN WKDW WKHVH FRQGLWLRQV DUH WKUHDWHQHG" 5XWK 0HW]OHU $UQROG 'XULQJ WKH ├АQDQFLDO \HDU ZH GLG RE VHUYH VRPH VLJQV RI WKLV 6ZLVV 60(V QDWXUDOO\ KDYH OHVV UHVRXUFHV DQG H[SHUWLVH WKDQ ODUJH FRPSDQLHV ZKHQ LW FRPHV WR GHDOLQJ ZLWK DGGLWLRQDO WUDGH EDUULHUV FXVWRPV WDULIIV H[FKDQJH UDWH ├Б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┬БQJ $QG WKH VDPH DSSOLHV LQFLGHQWDOO\ ZLWK UHJDUG WR LPSRUW 6ZLVV FRPSDQLHV DUH GHSHQGHQW RQ WKH LPSRUW RI SULPDU\ SURGXFWV IRU WKHLU VXUYLYDO 2XU ,PSRUW 3URPRWLRQ H[SHUWV KHDU HYHU\ GD\ KRZ LPSRUWDQW WKH ULJKW VXSSOLHUV DUH WR D FRPSDQ\ HV SHFLDOO\ H[SRUW ├А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┬БQJ 7KLV PHDQV WKDW PDQ\ 60(V DUH QRW RQO\ H\HLQJ (XURSH &OHDUO\ ├АUVW WLPH H[SRUWHUV VWLOO WDFNOH RQH RI WKH PDUNHWV QHDUE\ ZKLFK DUH DOVR WKH ┬йHDV\┬к PDUNHWV (YHQ WKRVH ZLWK PRUH H[SHULHQFH ZLOO DOZD\V PDLQWDLQ D IRRWKROG WKHUH ┬▓ SHU FHQW RI WKH 60(V TXHVWLRQHG LQ RXU ┬й60( ([SRUW ,QGLFDWRU┬к VXUYH\ ZKLFK LV FRQGXFWHG TXDUWHUO\ LQGLFDWHG WKDW WKH\ DUH SODQQLQJ WR H[SRUW WR (XURSH %DGHQ :┬БUWWHPEHUJ LV PRUH RU OHVV DV LPSRUWDQW DV &KLQD (XURSH ZLOO QRW ORVH LWV LPPHQVH LPSRUWDQFH WR 6ZLW]HU ODQG DV D VDOHV PDUNHW EXW DW WKH VDPH WLPH PRUH DQG PRUH RWKHU PDUNHWV DUH EHLQJ DGGHG ZKHWKHU LW LV WKH IDVW JURZLQJ $6($1 UHJLRQ WKH OLEHUDO /DWLQ $PHULFDQ 3DFL├А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чМиFXOW WR XQGHUVWDQG WKHVH GLVWDQW PDUNHWV WR ├АQG JRRG GLVWULEXWLRQ SDUWQHUV DQG WKH FXOWXUH DQG ODQJXDJH DUH YHU\ GLIIHUHQW :LWK WKHLU XQGHUVWDQGLQJ RI WKH UHOHYDQW PDUNHWV DQG WKHLU FRQWDFWV WKH VHUYLFHV SURYLGHG E\ RXU FRQVXOWDQWV DQG

H[SHUWV LQ WKH 6ZLVV %XVLQHVV +XEV DURXQG WKH ZRUOG DUH DEVROXWHO\ HVVHQWLDO ,PSRUW 3URPRWLRQ KHOSV XV WR EXLOG XS RXU NQRZOHGJH DQG RXU QHWZRUN WRGD\ LQ WKH PDUNHWV RI WRPRUURZ IRU H[DPSOH LQ ,QGRQHVLD 'DQLHO .┬БQJ :H DUH DOVR DZDUH RI DQ LQFUHDVHG QHHG IRU LQIRUPD WLRQ DQG DGYLFH GXH WR WKH VWURQJ GHPDQG IRU RXU GLJLWDO VHUYLFHV 7KDW LV ZK\ ZH KDYH EHHQ GHYHORSLQJ WKHVH IRU VRPH WLPH DQG ZDQW WR IXUWKHU LQFUHDVH WKHP <RX FDQ QRZ IRU H[DPSOH WDNH DQ RQOLQH WHVW ┬й:DUP8S ([SRUW┬к WR FKHFN ZKHWKHU \RXU FRPSDQ\ LV UHDG\ IRU DQ LQWHUQDWLRQDO SURMHFW :H RIIHU PDQ\ VXFK WRROV DQG DUH FRQ WLQXDOO\ SURYLGLQJ QHZ LQIRUPDWLRQ VXFK DV RXU ┬й*OREDO 2SSRUWX QLWLHV┬к 7KHVH DUH EXVLQHVV RSSRUWXQLWLHV ZKLFK WKH 6ZLVV %XVLQHVV +XEV GLVFRYHU LQ WKHLU FRXQWULHV DQG SURYLGH D EULHI GHVFULSWLRQ RI EHIRUH SRVWLQJ WKHP RQ RXU ZHEVLWH ,Q ORFDWLRQ SURPRWLRQ ZH DUH DOVR DFWLYHO\ ZRUNLQJ ZLWK WKH FDQWRQV DQG DUHDV WR IXUWKHU LQFUHDVH 6ZLW]HUODQG V GLJLWDO UHSXWDWLRQ DPRQJ WKH ULJKW LQYHVWRUV DEURDG 'R SRWHQWLDO LQYHVWRUV FXUUHQWO\ UHTXLUH PRUH LQIRUPDWLRQ" 'DQLHO .┬БQJ ,W GHSHQGV D OLWWOH RQ WKH UHJLRQ :H UHFHLYH TXHV WLRQV WLPH DQG WLPH DJDLQ LQ WKH 86$ DQG (XURSH IRU LQVWDQFH DERXW RXU UHODWLRQVKLS ZLWK (XURSH 7KDW KDV EHHQ OHVV LPSRUWDQW WR GDWH LQ WKH GLVWDQW PDUNHWV 2YHUDOO ZH KHDU IURP RXU H[WHUQDO QHWZRUN WKDW 6ZLW]HUODQG DQG LWV SURGXFWV FRQWLQXH WR HQMR\ D YHU\ JRRG UHSXWDWLRQ WKDW WKH\ UHSUHVHQW TXDOLW\ DQG LQQRYDWLRQ 7KLV LV SUHFLVHO\ ZKDW ZH UHO\ RQ LQ ORFDWLRQ PDUNHWLQJ :H H[SODLQ WKH VLWXDWLRQ LQ GHWDLO WR DOO LQYHVWRUV DQG HPSKDVL]H WKDW 6ZLW]HUODQG LV D SODFH IRU LQQRYDWLRQ DQG KLJK WHFKQRORJ\ D SODFH ZLWK D KLJK TXDOLW\ RI OLIH DQG UHDVRQDEOH JHQHUDO SROLWLFDO FRQGLWLRQV DQG D FRXQWU\ ZKLFK LV D OHDGHU LQ FOHDQWHFK SURGXFWLRQ 7D[HV KDYH ORQJ SOD\HG D PLQRU UROH LQ ORFDWLRQ PDUNHWLQJ VLQFH WKH\ KDYH QRW EHHQ FRXQWHG E\ LQYHVWRUV DV EHLQJ DPRQJ WKH WRS RI 6ZLW]HUODQG┬╖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┬╖V FDOFXODWLRQV ,W LV QRW D TXHVWLRQ RI EULQJLQJ DV PDQ\ IRUHLJQ FRPSDQLHV DV SRV VLEOH WR 6ZLW]HUODQG EXW WKH ULJKW RQHV :H KDYH DOVR DJUHHG ZLWK WKH FDQWRQV WKDW ZH ZLOO RQO\ IRUZDUG SURMHFWV ZKLFK KDYH UHDFKHG D FHUWDLQ GHJUHH RI PDWXULW\ WR WKHP 7KH GHFLVLRQ ZKHWKHU WR PRYH WR 6ZLW]HUODQG RU QRW VKRXOG EH PDGH ZLWKLQ PRQWKV , DP SDUWLFXODUO\ FRQFHUQHG WKDW ZH GR QRW IRUZDUG DV PDQ\ GHWDLOV DV SRVVLEOH RI FRPSDQLHV SRWHQWLDOO\ ZLVKLQJ WR HVWDEOLVK RчМиFHV LQ 6ZLW]HUODQG WR WKH FDQWRQV EXW WKDW WKRVH ZKLFK ZH GR IRUZDUG GR KDYH D KLJK SUREDELOLW\ RI DFWXDOO\ VHWWLQJ XS LQ 6ZLW]HUODQG 2QO\ LQ WKLV ZD\ FDQ WKH OLPLWHG SHUVRQQHO UHVRXUFHV RI WKH FDQWRQV EH XVHG HIIHFWLYHO\ ,Q VKRUW ZH QHHG WR DFWLYHO\ PDQDJH WKH FRPSDQLHV VHWWLQJ XS RчМиFHV KHUH DQG ZH QHHG VWURQJ IRFXVHG ORFDWLRQ PDUNHWLQJ IRU WKDW $QG DERYH DOO ZH PXVW SUHVHQW D XQLIRUP LPDJH DEURDG DV 6ZLW]HUODQG :H DOVR QHHG SRZHUIXO ORFDWLRQ SURPRWLRQ ZKLFK LV IRFXVHG RQ WKH 6ZLW]HUODQG EUDQG LQ DQG EH\RQG

$118$/ 5(3257