You are on page 1of 6

)URP E  

7R E  
6XEMHFW 5H6HHNLQJVRPHWLPHRQWKH&RPPLVVLRQHUVVFKHGXOHRQ0RQGD\
'DWH 6DWXUGD\-XQH30

<RXQHYHUVD\WKDWDERXWPH"":HOOREYLRXVO\,GRQ
WGRWKRVHDPD]LQJW\SHRIWKLQJVEXWDJDLQD
OLWWOHSLW\IRUPHQRWUHDOO\LWLVZHOOGHVHUYHGHYHQLI\RXGRQ
WZDQWWRJRWRH[RWLF'HWURLW,
KRSH\RXJHWDFKDQFHWRWDNHDEUHDWKDQGJHWDOLWWOH E  WLPH

2ULJLQDO0HVVDJH
)URP E  
7R E  
6HQW6DW-XQ
6XEMHFW)Z6HHNLQJVRPHWLPHRQWKH&RPPLVVLRQHU
VVFKHGXOHRQ0RQGD\

+HLVDPD]LQJ

2ULJLQDO0HVVDJH
)URP$*8,/$5'$9,'9
7R E  
&F E  
6HQW6DW-XQ
6XEMHFW5H6HHNLQJVRPHWLPHRQWKH&RPPLVVLRQHU
VVFKHGXOHRQ0RQGD\

7KDQNV E  

$SSUHFLDWHLW+DYHDJUHDWWLLPHRQ\RXUZHOOGHVHUYHGYDFDWLRQ'RQRWWKLQNDERXWXVRU&%3ZKLOH\RX
DUHHQMR\LQJ\RXUWLPHRII:HDUHJRLQJWRQHHGIRU\RXWREHUHIUHVKHGZKHQ\RXFRPHEDFN

'DYLG

2ULJLQDO0HVVDJH
)URP E  
7R$*8,/$5'$9,'9
&F E  
6HQW6DW-XQ
6XEMHFW)Z6HHNLQJVRPHWLPHRQWKH&RPPLVVLRQHU
VVFKHGXOHRQ0RQGD\

+HOORDQGJRRGDIWHUQRRQ&KLHI

/RRNVOLNHWKH&KLHIRI6WDIILVWU\LQJWRIUHHXSVRPHWLPHIRU\RXWRWDONWRWKH&RPPLVVLRQHURQ
0RQGD\ E   ZLOOFRRUGLQDWHZ\RXURIILFH

+RSHWKDW\RXDUHZHOO
E 

2ULJLQDO0HVVDJH
)URP E  
7R E  
&F E  
6HQW6DW-XQ
6XEMHFW5H6HHNLQJVRPHWLPHRQWKH&RPPLVVLRQHU
VVFKHGXOHRQ0RQGD\

*UHDW E   ZLOOPDNHLWKDSSHQ

2ULJLQDO0HVVDJH
)URP E  
7R E  
&F E  
6HQW6DW-XQ
6XEMHFW6HHNLQJVRPHWLPHRQWKH&RPPLVVLRQHU
VVFKHGXOHRQ0RQGD\

+HOORDQGJRRGDIWHUQRRQ

$VDIROORZXSWRVRPHRIFRPPXQLFDWLRQDQGRXWUHDFKDFWLYLWLHVLQVXSSRUWRIVELQHW&KLHI$JXLODUDQG
'HSXW\&KLHI6WHYHQVZRXOGOLNHWRVFKHGXOHVRPHWLPHRQWKH&RPPLVVLRQHU
VVFKHGXOHRQ0RQGD\
SHUKDSVPLQXWHV WRUHYLHZUHFHQWFRPPXQLFDWLRQVDFWLYLWLHVPHGLDUHSRUWVDQGGLVFXVVQH[WVWHSV
LQFOXGLQJDSURSRVDOWRFRQGXFWRSHQKRXVHV DQG'+6HQJDJHPHQW,VWKLVSRVVLEOH"

7KDQNV

E 


2ULJLQDO0HVVDJH
)URP$*8,/$5'$9,'9 E  
7R E  
6HQW6DW-XQ
6XEMHFW5H1HZV$UWLFOHV

E  

,DEVROXWHO\OLNHWKHLGHDRIDQRSHQKRXVH7KLVZRXOGLQVXUHEDODQFHGDXGLHQFHVDQGLQWHUHVWHG
SDUWLHVUHSUHVHQWHG

/HW
VJLQWKLVXSIRUSURSRVDOWRWKH&RPPLVVLRQHUIRUHDUO\WKLVZHHN:HGRQRWQHHGWRRPXFKGHWDLO
IRUWKH&RPPLVVLRQHU:HVKRXOGNHHSLWDWWKHFRQFHSWXDOOHYHO1H[WVWHSZRXOGEHIRUXV &%3 WR
PDUNHWWKLVWR'+6

/HW
VWU\WRJHWRQWKH&RPPLVVLRQHU
V6FKHGXOH0RQGD\

'DYLG

2ULJLQDO0HVVDJH
)URP E  
7R$JXLODU'DYLG9 E  
6HQW6DW-XQ
6XEMHFW5H1HZV$UWLFOHV

&KLHI

,VHHDFRXSOHRIEDODQFHGPHVVDJHVLQWKHVHDUWLFOHVEXWDOVRVRPHFOHDUDWWHPSWVWRWDNHVWDWHPHQWV
RXWRIFRQWH[WDQGSUHVHQWPLVUHSUHVHQWDWLRQVRIWKHIDFWV7KHIDFWWKDWWKLVHYHQWZDVFRQWUROOHGE\
IRONVZLWKDVSHFLILFDJHQGDPDGHLWGLIILFXOWDWEHVWWRKRSHIRUPXFKEHWWHUWKDQZHJRW*LYHQWKH
G\QDPLFV&KLHI,WKLQN\RXGLGZHOOWRNHHSWKHPLVLQIRUPDWLRQDVOLPLWHGDV\RXGLG

7KHNH\LVVXHVDQGHDVLHVWWDUJHWVIRURXUGHWUDFWRUVVHHPWREHWKHSHUFHSWLRQRIJRYHUQPHQW
VHFUHF\XQZLOOLQJQHVVWRSURYLGHVSHFLILFLQIRUPDWLRQDQGWKHRQJRLQJSHUFHSWLRQ IXHOHGE\WKRVHZLWK
DJHQGDV RIDKXJHZDOOVWUHWFKLQJIRUPLOHVUDWKHUWKDQWKHSLFWXUHZH
YHWULHGWRSDLQWRIVPDOO
VHFWLRQVRIIHQFHZKHUHLWPDNHVHQVH

%RWWRPOLQHIRUPHLVWKDWWKHIRONVZLWKWKHSROLWLFDODJHQGDVDUHORRNLQJIRUDQRSSRWUXQLW\WREXVWWKLV
WKLQJZLGHRSHQDQGH[SRVHWKHJRYHUQPHQWIRUWKHODLUVWKH\DUHDQGRXUFRQWLQXHGRYHUFDXWLRXV
DSSURDFKLVIHHGLQJWKHLUFDXVH
:HQHHGWRILQGDZD\WREXVWLWRSHQZLWKXVSXWWLQJIRUWKWKHIDFWVEHIRUHRXURSSRQHQWVFDQSXW
RXWDQ\PRUHP\WK:HKDYHWRWDNHWKHZLQGRXWRIWKHLUVDLOV

'XULQJDUHFHQWPHHWLQJWKH$UP\&RUSVIRONVVXJJHVWHGDIRUPDWIRURXWUHDFKWKDW,EHOLHYHZHPLJKW
ZDQWWRSXWRQVWHURLGVDQGWU\LQDQHIIRUWWRFRXLQWHUWKHVHSROLWLFV,WVDQRSHQKRXVHVSHFLILFWR
WKHWRSLF

7KHRSHQKRXVHZRXOGEHDYHU\SXEOLFHYHQW:HZRXOGDGYHUWLVHLWWRWKHSXEOLFOHWPHGLDDWWHQG
IUHHO\DQGLQYLWHVSHFLILFJURXSV VXFKDVWKH7H[DV%RUGHU&RDOLWLRQPD\RUV :HZRXOGKDYH
VWDWLRQVVHWXSZLWKH[SHUWVIURP6%,$UP\&RUSVDQG%35DWKHUWKDQDIRUPDWZKHUHSHRSOHFDQ
WDNHWKHVWDJHDQGJUDQGVWDQGIRONVFRXOGJRWRWKHVWDWLRQVDQGJHWLQIRUPDWLRQDQGDVNTXHVWLRQV

,SURSRVHWKDWHDFKVWDWLRQZRXOGEHRIDIXOOGLVFORVXUHQDWXUH:HZRXOGKDYHPDSVDQGPD\EHHYHQ
DHULDOSKRWRVRIDUHDVZKHUHRXUSUHOLPLQDU\DQDO\VHVLQGLFDWHZHPLJKWZDQWWRSXWIHQFHVDQG
GLIIHUHQWWDFWLFDOLQIUDVWUXFWXUHDQGWHFKQRORJ\2XUH[SHUWVZRXOGH[SODLQWKHWKRXJKWSURFHVVHV
EHKLQGWKHLQLWLDOVLWHVHOHFWLRQV2XUSHRSOHZRXOGDOVRSUHVVKRPHWKHIDFWWKDWZHZLOOFROODERUDWH
DQGDQ\KDQGRXWVZRXOGKDYHWKHDSSURSULDWHPHVVDJHV LQWLLDORSHUDWLRQDODQDO\VHVQRILQDOGHFLVLRQ
HWF DWWDFKHG

$UP\&RUSVVWDWLRQVZRXOGKDYHWKHLUH[SHUWVRQKDQGWRH[SODLQWKH5)3HQJLQHHULQJLVVXHV
FRQVLGHUDWLRQVDQGVWHSVWKDWQHHGWREHGRQHDVZHPRYHIRUZDUG

6%,FRXOGWDONWRZKDWLVFRPLQJLQWKHUHDOPRIWKHYLUWXDOIHQFH

:HZRXOGKDYHWRJHW'+6WRVXSSRUWXVRQWKLVEHFDXVHLWZRXOGPHDQSXWWLQJPDSVDQGDORWRILQIR
LQWRWKHSXEOLFUHDOPEXW,
YHFRPHWREHOLHYHWKLVPD\EHWKHRQO\ZD\WRSXWWKLVILUHRXW

7KHNH\VWRVXFFHVVRIWKLVFRQFHSWZRXOGEHLQFUHDWLQJDQHQYLURQPHQWRIRSHQFRPPXQLFDWLRQLQD
IRUPDWWKDWFDQ
WEHFRQWUROOHGE\WKRVHZLWKSROLWLFDORUVSHFLDOLQWHUHVWDJHQGDV

7KRXJKWV"

E 

2ULJLQDO0HVVDJH
)URP$*8,/$5'$9,'9 E  
7R E  
&F E  
6HQW6DW-XQ
6XEMHFW)Z1HZV$UWLFOHV

)<,

2ULJLQDO0HVVDJH
)URP E  
7R$*8,/$5'$9,'9 E  
6HQW)UL-XQ
6XEMHFW1HZV$UWLFOHV

&KLHI$JXLODU

%HORZDUHWZRVLPLODUDUWLFOHV E  DVNHGWKDW,HPDLOWKHPWR\RXVLQFHKHFRXOGQRWJHWKLVODSWRS

ZRUNLQJEHIRUHZHZHUHEDFNDWWKHRIILFH7KHILUVWLVWKH$3DUWLFOHWKDWZDVLQWKH%URZQVYLOOH+HUDOG
+RXVWRQ&KURQLFOHDQG$%&1HZV,SUREDEO\VKRXOGQ¶WH[SUHVVP\RSLQLRQEXWP\IDYRULWHOLQHFRPHV
RXWRIWKHVHFRQGDUWLFOHEHORZZKLFKVWDWHV³$IWHUKLVVSHHFK$JXLODUZDVUXVKHGRXWRIWKH0F$OOHQ
&RQYHQWLRQ&HQWHUWRDZDLWLQJPRWRUFDGH´


%RUGHU3DWUROFKLHIPHHWVZLWKRIILFLDOVLQWKH9DOOH\

%\/<11%5(=26.<$VVRFLDWHG3UHVVPDLOWR!

0F$//(1 $3 7KHFKLHIRIWKH86%RUGHU3DWUROWROGDQJU\PD\RUVEXVLQHVVPHQDQG
HQYLURQPHQWDOLVWV)ULGD\WKHPLOHERUGHUIHQFHZDVODZDQGLIKLVDJHQF\DQGORFDORIILFLDOVUHDFK
DQLPSDVVHRQZKHUHWKHIHQFHVKRXOGJRWKHQLW
VXSWRVRPHRQHWRPDNHDGHFLVLRQ

&KLHI'DYLG$JXLODU
VDGGUHVVWRWKH7H[DV%RUGHU&RDOLWLRQZKLFKZDVKDVWLO\DUUDQJHGODWH7KXUVGD\
DIWHUQXPHURXVFDQFHOODWLRQVE\+RPHODQG6HFXULW\RIILFLDOVZDVVSULQNOHGZLWKFRQFLOLDWRU\LIVDQG
PD\VDERXWWKHORFDWLRQRIWKHIHQFH%XW$JXLODUPDGHFOHDUWKDWWKHIHGHUDOJRYHUQPHQWZRXOGKDYH
WKHILQDOVD\

7KHPLVVLRQRIVHFXULQJWKLVFRXQWU\LVPLVVLRQRQHKHVDLG

:KHQ'DYLG*XHUUDDQH[HFXWLYHZLWKDEDQNWKDWGRHVDORWRIEXVLQHVVZLWK0H[LFDQVDVNHGZKDW
UHFRXUVHORFDOOHDGHUVZRXOGKDYHLIWKHJRYHUQPHQWZHQWDJDLQVWWKHLUFRQFHUQV$JXLODUVDLG,WKLQN
DVDEDQNHU\RXNQRZWKDWVRPHWLPHVWKLQJVFRPHWRDQLPSDVVHDQGWKHQLW
VXSWRVRPHRQHWR
PDNHDGHFLVLRQ

/RFDORIILFLDOVKDYHEHHQIXPLQJRYHUZKDWWKH\FRQVLGHUWKHVHFUHF\FRQFHUQLQJDIHQFHWKH\VD\ZLOO
FXWIDUPHUVRIIIURPZDWHUKDUPZLOGOLIHUXLQUHFUHDWLRQDODUHDVDQGVHQGDKRVWLOHPHVVDJHWR0H[LFR
7H[DV
ELJJHVWWUDGLQJSDUWQHU

:LWKLQPRQWKVRIJHWWLQJ+RPHODQG6HFXULW\6HFUHWDU\0LFKDHO&KHUWRII
VDVVXUDQFHVWKDWGHFLVLRQVRQ
WKHIHQFH
VORFDWLRQZRXOGQRWEHPDGHZLWKRXWWKHLULQSXWFRDOLWLRQPHPEHUVLQWHUFHSWHGDFRQILGHQWLDO
86&XVWRPVDQG%RUGHU3URWHFWLRQPHPRWKDWLQFOXGHGDPDSRIWKHIHQFH

&XVWRPVDQG%RUGHU3URWHFWLRQKDVVLQFHVDLGWKLQJVZHUHEDGO\KDQGOHGDQGWKDWWKHPDSLV
SUHOLPLQDU\

6HQ.D\%DLOH\+XWFKLVRQD7H[DV5HSXEOLFDQZKRYRWHGIRUWKHIHQFHJRWDQDPHQGPHQWSDVVHGLQ
WKHSHQGLQJ6HQDWHLPPLJUDWLRQELOOWKDWZRXOGUHTXLUH+RPHODQG6HFXULW\WRWDNHORFDOV
FRQFHUQVLQWR
FRQVLGHUDWLRQZKHQVLWLQJWKHIHQFH

%XWORFDOOHDGHUVWROG$JXLODURQ)ULGD\WKDWSRRUFRPPXQLFDWLRQSHUVLVWVZLWKDOOWKHLULQIRUPDWLRQVRIDU
FRPLQJIURPLQWHUFHSWHGPHPRVLQFOXGLQJDUHTXHVWIRUSURSRVDOVIRUWKHIHQFHFRQWUDFW

:KDWLV\RXUSODQLQ7H[DV":KHUHLVWKHIHQFHJRLQJWREHEXLOWFRDOLWLRQOHDGHU0LNH$OOHQVDLG

,FDQ
WWHOO\RXWRGD\$JXLODUVDLG,I,WROG\RXZKHUHWKHIHQFHZDVJRLQJWKDWZRXOGPHDQZH
G
QHYHUSDUWQHUHGZLWK\RX

+HVDLGWKHUHZHUHQRFRQILGHQWLDOPHPRV

%XW-RKQ0F&OXQJSUHVLGHQWRIWKH7H[DV3URGXFH$VVRFLDWLRQZKRDWWHQGHGDVHSDUDWHIHQFHPHHWLQJ
)ULGD\EHWZHHQODQGRZQHUVDQGWKH%RUGHU3DWUROVDLGDJHQWVUROOHGRXWPDSVRISULYDWHSURSHUW\
PDUNHGZLWKOLQHVVKRZLQJH[DFWO\ZKHUHWKHIHQFHZDVEHLQJFRQVLGHUHG7KHOLQHVZHUHGUDZQRQWKH
OHYHHVZKLFKFDQEHDVPXFKDVPLOHVLQODQGIURPWKH5LR*UDQGH

:KHQ\RXOLVWHQWRWKHFKLHIRIWKH%RUGHU3DWUROVD\WKLVPRUQLQJWKDWWKLVDOOLVVXEMHFWWR
FRQVXOWDWLRQZLWKORFDOLWLHVDQGWKHQ\RXJRWRDVLWHPHHWLQJDQG\RXVHHELJUROORXWPDSVZLWKOLQHV
GUDZQRQLW\RXEHJLQWRZRQGHUZKDWWKHLUGHILQLWLRQRIFRQVXOWDWLRQLVKHVDLG

$OOHQIRUPHUSUHVLGHQWRIWKH0F$OOHQ(FRQRPLF'HYHORSPHQW&RUSVDLGKHZDVLQVXOWHGWROHDUQWKDW
WKH%RUGHU3DWUROZDVQRWSXEOLFL]LQJWKHODQGRZQHUV
PHHWLQJV

:H
GOLNHWRNQRZZKDW\RX
UHQHJRWLDWLQJKHVDLG/HWXVNQRZZKHUHWKHVHPHHWLQJVDUH:H
GOLNH
WRJRWRWKHPKHVDLG



0F$//(1²86%RUGHU3DWURO&KLHI'DYLG$JXLODUPHWZLWKHOHFWHGRIILFLDOVIURPWKH7H[DV0H[LFR
ERUGHU)ULGD\EXWIDLOHGWRDOOD\FRQFHUQVWKDWWKHIHGHUDOJRYHUQPHQWLVNHHSLQJTXLHWLWVSODQVIRUWKH
SURSRVHGERUGHUIHQFH

³,¶PQRWFRQILGHQW WKH\¶UHNHHSLQJXVLQIRUPHG :H¶YHEHHQEXUQHGVRPDQ\WLPHV´/DUHGR0D\RU


5DXO6DOLQDVVDLG

³/RRNDWHYHU\RQHZHJRWKHUHWRGD\:H¶UHNQRFNLQJRQWKHGRRUDQGWKLVLVDZDNHXSFDOO´

$JXLODU¶VDSSHDUDQFHFDPHDWD7H[DV%RUGHU&RDOLWLRQPHHWLQJDQHYHQWWKDWEURXJKWWRJHWKHU
FRQVHUYDWLRQLVWVODQGRZQHUVIDUPHUVDQGHOHFWHGRIILFLDOVLQDQDWWHPSWWRGHYLVHDVWUDWHJ\WRRSSRVH
IHQFHFRQVWUXFWLRQ$JXLODUWKHKLJKHVWUDQNLQJ%RUGHU3DWURORIILFLDOLQWKHFRXQWU\ZDVQRWRULJLQDOO\
VFKHGXOHGWRDSSHDUEXWFDOOHGWRVD\KHZDVFRPLQJ7KXUVGD\QLJKWVDLG(GGLH$OGUHWHRQHRIWKH
PHHWLQJRUJDQL]HUV

$JXLODUVSRNHIRUDERXWPLQXWHVWDNLQJTXHVWLRQVIURPWKHDXGLHQFHDQGH[SODLQLQJWKH
JRYHUQPHQW¶VSODQVIRUERUGHUVHFXULW\

³$ZDOORUDIHQFHLVDWDFWLFDOWRRO,W¶VQRWDVROXWLRQ´$JXLODUVDLG

³7KLVLVQRWDQLVVXHVROHO\RILOOHJDOLPPLJUDWLRQ«:HKDYHWREHJLQWRWKLQNµ6KRXOGZHVWDUW
VHFXULQJRXUERUGHUQRZRUZDLWXQWLOVRPHWKLQJKDSSHQV"¶

³7KLVFRXQWU\LVDWZDU´$JXLODUDGGHGUHIHUULQJWRWKHVRFDOOHGJOREDOZDURQWHUURU³:H¶UHILJKWLQJD
ZDUXQOLNHDQ\WKLQJWKLVFRXQWU\KDVVHHQEHIRUH:H¶UHILJKWLQJDQLGHRORJ\´

$IWHUKLVVSHHFK$JXLODUZDVUXVKHGRXWRIWKH0F$OOHQ&RQYHQWLRQ&HQWHUWRDZDLWLQJPRWRUFDGH

³<RXFDQORRNDWLWWZRZD\V´+LGDOJR&RXQW\-XGJH-'6DOLQDVVDLGRI$JXLODU¶VDSSHDUDQFH³7KLV
FRXOGEHDSXEOLFDIIDLUVWKLQJWRWU\DQGFDOPWKHORFDOVGRZQRUWKH\UHDOO\FDUHDQGZDQWRXULQSXW

³3HUVRQDOO\,WKLQNWKH\KDYHJRRGLQWHQWLRQV´

)ROORZLQJ$JXLODU¶VGHSDUWXUHPHHWLQJDWWHQGHHVGLVFXVVHGKRZWKH\VKRXOGWU\WRUHGXFHWKHPLOHV
RIIHQFHGHVLJQDWHGIRU7H[DVDVGHWDLOHGLQDPDSGUDZQXSE\WKH86'HSDUWPHQWRI+RPHODQG
6HFXULW\'+6RIILFLDOVKDYHFDOOHGWKHPDSZKLFKZDVSDUWRIDFRQILGHQWLDOPHPROHDNHGWRWKHPHGLD
ODVWPRQWK³SUHOLPLQDU\´

:KLOHVRPHODQGRZQHUVDUJXHGIRUWDNLQJWKHLUFRQFHUQVWR%RUGHU3DWUROLQGLYLGXDOO\WKHFRQVHQVXV
DPRQJHOHFWHGRIILFLDOVZDVIRUDXQLILHGRSSRVLWLRQ

³7KHELJJHUZHDUHWKHPRUHLQSXWZHZLOOKDYH´0F$OOHQ0D\RU5LFKDUG&RUWH]VDLG

³,I\RXNQRZVRPHERG\DWWKH86&KDPEHURI&RPPHUFHRUWKHIDUPHUVDVVRFLDWLRQV«FDOOWKHP´
E  

$VVLVWDQW&KLHI+42%3

3HQQV\OYDQLD$YH1:

5RRP(

:DVKLQJWRQ'&

E