´ ´ &XOWXUHLQLWVEURDGHVWVHQVH²IURPERRNVDQGIRRWEDOOWRPXVLFIRRG DQGWUDYHO²IRUWKRVHZKRORYH6SDLQDQGDOOWKLQJV6SDQLVK _7KH$QJOR6SDQLVK6RFLHW\5HYLHZ6SULQJ_ /D5HYLVWD 6SHFLDO(GLWLRQ %RULVPHHWV6SDLQ (ODUWHGHOSDODGDU Arzac comes to London Estefania Ruilope onpage 22 7KH/RQGRQ0D\RUDW WKH$QJOR6SDQLVK*DOD 'LQQHU 3DJH 7UDYHO :LOGOLIH7KH9LUJLQLQ $QGDOXFLD SDJH %RRNUHYLHZ /RUFD·VLPDJLQDWLRQ 3DJH )URPWKH(GLWRU %LHQYHQLGRV,W·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p3L]DUURGRLQJ LWZLWKVW\OH 6SDQLVKIRRGFDQQRWEHUXVKHGDQGLVDOOWKHEHWWHUIRULW:HDUHLQ WKHDJHRI6SDQLVKFHOHEULW\FKHIVHDUQLQJ0LFKHOLQVWDUVJLYLQJPDV WHUFODVVHVGHFRQVWUXFWLQJWKHROGWRUHDFKRXWWRDPRUHGLVFHUQLQJ JOREDOPDUNHWEXWDOZD\VGUDZLQJIURPWKHEHVWWUDGLWLRQVDQGLQJUH GLHQWV7KLVLVZKDWZHFDQWUXO\FDOODFXOWXUDOSKHQRPHQRQHODUWH GHOSDODGDUWKHDUWRIWDVWHZKLFKDVRQHRI/RQGRQ·VKLGGHQJHPV(O 9HUJHOVKRZVVWUDGGOHVFRQWLQHQWV ,WLVDKXJHVXEMHFWDQGZHKDYHKDGWREHQHFHVVDULO\VHOHFWLYHLI RFFDVLRQDOO\HFOHFWLFLQRXUFKRLFHVRIDUWLFOHV%XWDVSHFLDOWKDQNVIRU DGYLFHDQGVXSSRUWJRWR0DUFRV)HUQDQGH]0DULD-RVp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tD$-LPpQH]5LHVFR 5HVHDUFK-XOLD%XUQV (YHQWV%HDWUL]*DJR9D]TXH] 0HPEHUVKLS)LQDQFHDQGZHEVLWH9LUJLQLD&RVDQR 5HVHDUFK1qOLGD0DORQGD*DUFLD 'LVWULEXFLyQ(O,EpULFR 3XEOLVKHGE\WKH$QJOR6SDQLVK6RFLHW\ (DWRQ6TXDUH/RQGRQ6::$1 +RQRUDU\3UHVLGHQW+LV([FHOOHQF\WKH6SDQLVK$PEDVVDGRU )HGHULFR7ULOOR)LJXHURD &KDLUPDQ'DPH'HQLVH+ROW 9LFH&KDLUPDQ-LPP\%XUQV 7UHDVXUHU-DLPH+XJDV 2WKHUPHPEHUVRIWKH([HFXWLYH&RXQFLO )LGHO/RSH]$OYDUH]3DXO3LFNHULQJ$OEHUW-RQHV6DUD$UJHQW-XOLR&UHVSR0DF/HQ QDQ-DLPH$UUDQ]&RTXH0DULD9LFWRULD<XVWH*DV&DUPHQ%RXYHUDW-RKQ6FDQODQ /DG\3LODU%UHQQDQ-RVp,YDUV/RSH]0XLU6XWKHUODQG6LU6WHSKHQ:ULJKW6LREKDQ 6RQJRXU/XFLD/LQGVD\$YLHU)HUQDQGH]+LGDOJR 3XEOLVKHGE\WKH$QJOR6SDQLVK6RFLHW\ (DWRQ6TXDUH/RQGRQ6::$1LQIR#DQJORVSDQLVKVRFLHW\RUJ ZZZDQJORVSDQLVKVRFLHW\RUJ Facebook: facebook.com/ AngloSpanish Twitter: @AnglosSpanish 7KHQH[WLVVXHRI/D5HYLVWDLVGXHWRDSSHDULQ-XO\(GLWRULDO FRQWULEXWLRQVLGHDVDQGDGYHUWLVLQJLQTXLULHVVKRXOGEHHPDLOHGWR LQIR#DQJORVSDQLVKVRFLHW\RUJ 7KHRSLQLRQVH[SUHVVHGWKURXJKRXWWKLVLVVXHRI/D5HYLVWDUHSUHVHQW WKRVHRIWKHDXWKRUVDQGFRQWULEXWRUVDQGGRQRWQHFHVVDULO\UHÁHFWWKH RSLQLRQVRIWKH$QJOR6SDQLVK6RFLHW\RUWKRVHRIWKHLUVXSSRUWHUV 7KH$QJOR6SDQLVK6RFLHW\LVDUHJLVWHUHGFKDULW\ PDLQFRYHULPDJH(VWHIDQLD 5XLORSH _/$5(9,67$_635,1*,668(_ ;7+1-<A6-?; 7KH$QJOR6SDQLVK6RFLHW\·VIODJVKLS*DOD 'LQQHUDW/RQGRQ·V5R\DO$XWRPRELOH&OXE RQ0DUFKZDVDSRSXODUHYHQWZLWKDQ HYHQLQJRILQVSLUHGPXVLFGHOLFLRXVIRRG DQGZLQHDQG%RULV-RKQVRQ %XHQDV7DUGHVDPLJRV%RULV-RKQVRQLQIXOOÁLJKW $QJORB6SDQLVK6RFLHW\PHPEHUVZLWK'DPH'HQLVH+ROW 7KH0D\RURI/RQGRQWXUQHGXSORRN LQJVOLJKWO\UXIÁHGDIWHUEUDYLQJDUFWLF ZLQGVDQGVQRZRQKLVELNHIURP&LW\ +DOOWR3DOO0DOO%XWJLYHQDIHZ PLQXWHVWRFRPSRVHKLVWKRXJKWVKH ZDVVRRQLQZDUPFRPSDQ\HQWKXVL DVWLFDOO\JUHHWHGE\RYHUWZRKXQGUHG 6RFLHW\PHPEHUVIULHQGVDQGFRU SRUDWHVXSSRUWHUVLQWKHFOXE·VVWDWHO\ 0RXQWEDWWHQURRP 2QKDQGWRHQVXUHWKDWWKHHYHQLQJ ZHQWDFFRUGLQJWRSODQZDVPDVWHURI _/$5(9,67$_635,1*,668(_ FHUHPRQLHV'DYLG+XUVWDQGKLVHQ WKXVLDVWLFWHDPRI6RFLHW\YROXQWHHUV OHGE\9LUJLQLD&RVDQRDQG%HDWUL] *DJRZKLOH&DUPHQ%RXYHUDWPDGH VXUHWKDWJXHVWVZHUHDZDUHRIWKH IDQWDVWLFUDIÁHSUL]HVFRQWULEXWHGE\ LQGLYLGXDODQGEXVLQHVVVXSSRUWHUV 7KHUHZDVVRRQDVPXFKODXJKWHU DVDSSODXVHDV%RULVUHFDOOHGKLV \RXWK´VOHHSLQJLQ6SDQLVKGLWFKHVµ DQGDGGUHVVHGKLVDXGLHQFHDV¶PLV DPLJRV·EHIRUHGHOLYHULQJWULEXWHV WR$QJOR6SDQLVKUHODWLRQVDQGKLV EHORYHG/RQGRQZLWKDFKDUDFWHULV WLFPL[RIKXPRXUDQGLQVLJKW´7KH %DUFHORQD2O\PSLFVLQDFKLHYHG TXLWHLQFUHGLEOHUHVXOWVLQWHUPVRI HPSOR\PHQWDQGLQFUHDVHLQYLVLWRUVWR WKHFLW\µKHVDLGDGGLQJWKDW/RQGRQ KDGVKRZQWKHZRUOGODVWVXPPHUZLWK LWV2O\PSLFVWKDWLWZDVD´JHQHURXV RXWZDUGORRNLQJPXOWLFXOWXUDOFLW\µ 7KHGLQQHUZDVDWWHQGHGE\DFURVV VHFWLRQRIWKH6SDQLVKEXVLQHVVDQG ;WKQITINNIQZ[KWZZM[XWVLMV\ 3KRWRJUDSK\E\5LFKDUG%DUNHU 'HQLVH+ROW 'HQLVH+ROW%RULVDQG $PEDVVDGRU7ULOOR +HDGRI&DWDODQ'HOHJDWLRQ -RVHS6XDUH]WKH+RQ.LGJH %XUQV%RULV/ROD6ZLGHUVND -LPP\%XUQV'DYLG+XUVW EDQNLQJFRPPXQLW\LQ/RQGRQWKH DPEDVVDGRU)HGHULFR7ULOORDQG%ULW LVKZLWKDQLQWHUHVWLQ6SDLQLQFOXG LQJIRUPHU7RU\PLQLVWHU/RUG*DUHO -RQHVDQG/DERXU·V/RUG%UHQQDQ 7KHHYHQWZDVVSRQVRUHGE\WKH 6SDQLVK7RXULVP2IÀFHZLWKIRRG EHHWURRWJD]SDFKRFRFKLQLOORDQG 7DUWDGH6DQWLDJRH[SHUWO\SUHSDUHGE\ PDVWHUFKHIVRIWKH6SDQLVKUHVWDXUDQW ,EHULFDDQGPXVLFSOD\HGE\VLPLODUO\ WDOHQWHG6SDQLVK(QJOLVKDQG*HUPDQ _/$5(9,67$_635,1*,668(_ ;7+1-<A6-?;+76<16=-, 6SDQLVK&XOWXUDODWWDFKp )LGHO/RSH]$OYDUH]ZLWKOHIWWRULJKW&ULVWLQD*XHUUD$OED0HQHQGH](OLVDEHWK $OEHUROD /DG\%UHQQDQ VWXGHQWVRIWKH5R\DO$FDGHP\RI 0XVLF ,QDWHQPLQXWHVSHHFK0U-RKQVRQ QRWHGWKDWZKLOHKHXQGHUVWRRGZK\ ÀIWHHQPLOOLRQ%ULWLVKHYHU\\HDU FKRVHWRHVFDSHWR6SDLQIURPWKH 8.·V¶6LEHULDQZHDWKHU·WKH8.DQG /RQGRQLQSDUWLFXODUZDVH[SHULHQFLQJ DQXQSUHFHGHQWHGJURZWKLQ6SDQLVK YLVLWRUVDQGLQYHVWPHQW ´6SDLQKDVEHFRPHWKHVLQJOHELJJHVW IRUHLJQLQYHVWRULQWKH8.ZLWKIRXUW\ _/$5(9,67$_635,1*,668(_ SHUFHQWRIWKLVLQYHVWPHQWFRPLQJWR /RQGRQ$LUSRUWVFRPPXQLFDWLRQV EDQNLQJKHDOWKFDUHHQHUJ\IDVKLRQ UHWDLOQRWVLQFHWKH6SDQLVK5RPDQ (PSHURU+DGULDQKDVWKHUHEHHQVXFK DVWRQLVKLQJLQYHVWPHQWLQWKLVFRXQ WU\µVDLG0U-RKQVRQ 7KH0DMRUUHJUHWWHGKDYLQJWROHDYH HDUO\EHFDXVHRIDQLQWHQVHVFKHGXOHRI ZRUNEXWKHJHQHURXVO\JDYHHQRXJK RIKLVWLPHWRPHHWLQJUHTXHVWVIURP JXHVWVWKDWKHYLVLWWKHLUWDEOHVDQG &DUPHQ%RXYHUDWZLWKUDIÁHSUL]HZLQQHU$QGUHZ:DOODFH 0U0UV-DLPH+XJDVZLWK'HQLVH+ROW KDYHDSKRWRWDNHQ ,QDVHSDUDWHVSHHFK$PEDVVDGRU 7ULOORWKDQNHGWKHGHSDUWLQJFKDLU PDQRIWKH6RFLHW\WKHIRUPHU%ULWLVK DPEDVVDGRUWR0DGULG'DPH'HQ LVH+ROWIRUKHUKHOSLQJGHYHORSWKH $QJOR6SDQLVK6RFLHW\DVDQLPSRU WDQWDQGSRLQWRIFRQVWUXFWLYHHQFRXQ WHUEHWZHHQWZRSHRSOHV7KHHYHQLQJ ZDVFRQFOXGHGE\WKHQHZFKDLUPDQ RIWKH6RFLHW\WKH$QJOR6SDQLVK DXWKRUDQGMRXUQDOLVW-LPP\%XUQV 1LFROH&UHVSR2·'RQRJKXH/DXUD+DPPRQGV /XNDV+DQN <RXQJ$QJOR6SDQLVK6RFLHW\PHPEHUV %HORZ%RULVZLWK6SDQLVK7RXULVP·V (QULTXH5XL]GH/HUD %HORZ0U0UV-XOLR&UHVSR0DF/HQQDQ 0DUDxRQZKRVDLG6SDQLDUGVOLYLQJLQ WKH8.KDGDJUHDWRSSRUWXQLW\WRGH YHORSD¶IUHVKSHUVSHFWLYH·RQOLIHDQG ÀQGD´QHFHVVDU\FUHDWLYHVSDFHµ:LWK VSHFLDOWKDQNVWR7KH6SDQLVK7RXULVW 2IÀFH,EHULFDDQGRXUSULQFLSDOVXS SRUWHUV6DQWDQGHU%%9$7HOHIRQLFD )HUURYLDODQG%XSD _/$5(9,67$_635,1*,668(_ _/$5(9,67$_635,1*,668(_ ;7+1-<A6-?; &KULVWPDV3DUW\$PXVLFDOIHDVW *W\\WUTMN\"5IZQIVWNZWU 0Q[XIVQIIVLIUMUJMZWNPQ[ \MIU 7RS0DLWH$JXLUUHZLWKVLQJHUV .LGJH%XUQVDQG3DXO3LFNHULQJ %RWWRP&KRLULQDFWLRQ 5LJKW'DPH'HQLVH+ROW $OLYHO\¶LQWHUOXGH·RIFKRUDOPXVLF ZDVRQHRIWKHLQQRYDWLRQVDWWKH $QJOR6SDQLVK6RFLHW\·VDQQXDO &KULVWPDVSDUW\WKLV\HDUZLWKWKHÀUVW HYHUSHUIRUPDQFHE\PHPEHUVDQG IULHQGVH[SHUWO\FRQGXFWHGE\RXU PXVLFDOGLUHFWRU0DLWH$JXLUUH 'UDZLQJRQKHUH[SHULHQFHDVDQ DFFRPSDQLVWDWWKH*XLOGKDOO6FKRRO RI0XVLF'UDPD0DLWHLQVSLUHG KHUIHOORZVLQJHUVDQGGHOLJKWHG DIXOOKRXVHRIDOODJHVJDWKHUHGDW &DQQLQJ+RXVH·VVWDWHO\URRPVLQ %HOJUDYH6TXDUH2QRIIHUDVHOHFWLRQ RI6SDQLVK¶YLOODQFLFRV·DQGWUDGLWLRQDO (QJOLVKFDUROVEHWZHHQURXQGVRIGHOL FLRXVWDSDVZLQHFDYDDQGDWDEOHRI WXUURQFRXUWHV\RI-DYLHU)HUQDQGH]·V +LVSDQLDUHVWDXUDQW ;WKQIT +WZZM[XWVLMV\ &DUPHQ%RXYHUDW6LREKDQ6RQJRXU %HDWUL]*DJR9LUJLQLD&RVDQRDQG +DUULHW0F.HQ]LHSXWLQDWUHPHQGRXV WHDPHIIRUWLQRUJDQLVLQJWKHHYHQLQJ 0DQ\WKDQNVWRWKHPDVDQGWRWKRVH ZKRKHOSHGLQPDNLQJWKHUDIÁ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²WKLV\HDULQWKHIRUPRIDQ HDUO\HGLWLRQRI7LEHULRE\WKHSK\VL FLDQDQGKLVWRULDQ*UHJRULR0DUDxyQ ZDVSUHVHQWHGWR(OHQDE\WKHDXWKRU·V JUDQGVRQ/D5HYLVWD·VHGLWRU-LPP\ %XUQVGXULQJWKH6RFLHW\·V&KULVW PDVSDUW\´(OHQDZULWHVDVÁXHQWO\ LQ(QJOLVKDVVKHGRHVLQ6SDQLVKDQG &DWDODQµVD\V%XUQV´DQGZLWKDJUHDW EHOLHIWKDWLQVSLUDWLRQDOFXOWXUHDQGDUW VKRXOGFXWDFURVVWKHSROLWLFDOGLYLGHµ +HUDUWLFOHZDVRQWKHVXEMHFWRI$JXV WL9LOODURQJD·V3D1HJUHWKHÀUVWHYHU &DWDODQODQJXDJHÀOPWREHVHOHFWHG DV6SDLQ·VHQWU\LQODVW\HDU·V%HVW )RUHLJQ/DQJXDJH2VFDU$FDGHP\ $ZDUGV´6LQFH&DWDORQLD·VIRXUFHQWX U\ROGQDWLRQDOLVWLVVXHVDUHLQFRQVWDQW 0HPEHUV6DYRXU *DVWURQRPLF'HOLJKWV 2QHRIWKHÁDJVKLSHQWUHUSULVHVRI 6SDQLVKFXLVLQHLQ/RQGRQ,EHULFD RUJDQLVHGWZRVHSDUDWHHYHQWVIRUWKH H[FOXVLYHHQMR\PHQWRI$QJOR6SDQLVK 6RFLHW\PHPEHUVGXULQJWKHÀUVWTXDU WHURI 7KHÀUVWDVSHFLDOWDSDVHYHQLQJLQ -DQXDU\DW,EHULFD·V0DU\OHERQHUHV WDXUDQWDWZKLFKPHPEHUVZHUHWUHDWHG WRFDYDZLQHDQGDVHOHFWLRQRIWKH KRXVH·VEHVWIRRG 7KHVHFRQGODVWPRQWKZDVKRVWHG _/$5(9,67$_635,1*,668(_ GHEDWHDQG\HWWREHUHVROYHGµZULWHV (OHQD´LWLVDWOHDVWDVWHSIRUZDUGWKDW WKHWZRVLGHVZLOOEHZDONLQJWRJHWKHU DORQJWKHUHGFDUSHWVRI+ROO\ZRRG :KRZRXOGKDYHWKRXJKWLW"µ (OHQDJUHZXSLQWKH0HGLWHUUDQHDQ FRDVWDOWRZQRI7DUUDJRQDQHDU%DU FHORQD$IWHUJUDGXDWLQJLQ-RXUQDOLVP IURPWKH8QLYHUVLW\RI1DYDUUHVKH ZRUNHGIRU(O3HULRGLFRGH&DWDOXQ\D DQGZRQD)XOEULJKWVFKRODUVKLSWRGR D0DVWHUVLQ)LQDQFLDO-RXUQDOLVPLQ WKH86(OHQDODWHUVHWWOHGLQ/RQGRQ DVDÀQDQFLDOUHSRUWHUZRUNLQJIRU 5HXWHUV%ORRPEHUJDQGWKH*XDUG LDQQHZVSDSHU6KHLVWKHDXWKRURIWKH QRYHO7KH2OLYH*URYHVRI%HOFKLWH DERXWWKHLPSDFWRIWKH6SDQLVK&LYLO :DURQWKUHHJHQHUDWLRQV RIZRPHQ$QDUGHQWWUDYHOOHUF\FOLVW DQGIRRWEDOOSOD\HU(OHQDOLYHVZLWK KHUSDUWQHULQ1RUWK/RQGRQ $IWHUUHFHLYLQJKHUDZDUG(OHQD ZULWHLQ6SDQLVKWR/D5HYLVWD·V (GLWRU´6RORWHTXHUtDDJUDGHFHUOD DFRJLGD\HOSUHPLRWDQIDQWiVWLFR 4XHKRQRU\TXHLOXVLyQPHKL]R UHFLELUHOOLEURGHWXDEXHORGHWXV PDQRV/DYLGDYDOHODSHQDYLYLUOD SDUDPRPHQWRVTXHVLJQLÀFDQWDQWR FRPRHVWH²SRUPLDPLVWDGFRQWLJR SRUHOOHJDGRLQWHOHFWXDOGHWXDEXHOR \SRUHOLQWHUFDPELRFXOWXUDOHQWUH ORVGRVSDtVHV1RVRWURVTXHVRPRV ´ELFXOWXUDOHVµVDEHPRVORLPSRUWDQWH \HQULTXHFHGRUTXHHV1RTXLHURVHU FXUVLSHURORSLHQVRDVLµ DW,EHULFD·VHVWDEOLVKPHQWLQ&D QDU\:KDUIDQGSURYHGSDUWLFXODUO\ SRSXODUJLYHQWKDWLWZDVRIIHUHGDV D0DVWHU&ODVVLQ6SDQLVKFRRNLQJ ´,WZDVDEVROXWHO\PRVWHQMR\DEOHWR NQRZWKHWHFKQLTXHVLQJUHGLHQWVDQG VWHSVWRFUHDWHDGLVKDQGZHZHUHYHU\ LPSUHVVHGZLWKWKHSUHSDUDWLRQRIWKH WZRRIWKHGLVKHVGRQHE\&HVDU*DU FLDRQWKHQLJKWLQVLWXMXVWIRUXVµ FRPPHQWHG%HDWUL]*DJRRQHRIWKH GHOLJKWHGPHPEHUVDWWHQGLQJ 7KHJXHVWVZHUHJUHHWHGRQDUULYDOE\ 1DFKR0DQ]DQR,EHULFD·VSUL]HZLQ QLQJFKHIZKRRYHUVDZWKHVHOHFWLRQ RIGLVKHV ;7+1-<A6-?; &KDQJHDWWKHKHOP 6SDLQKDVEHHQDFRQVWDQWWKHPHLQP\ OLIHIRUQHDUO\\HDUV0\GLSORPDW LFFDUHHUEHJDQDQGHQGHGZLWK6SDLQ ,WZDVP\HQRUPRXVSULYLOHJHWREH WKHÀUVWIHPDOH$PEDVVDGRUWR6SDLQ DQGVXEVHTXHQWO\LWZDVDJUHDWSOHDV XUHWREHFRPHWKHÀUVWIHPDOH&KDLU RIWKH$QJOR6SDQLVK6RFLHW\7KUHH \HDUVRQ,KDYHGHFLGHGZLWKVRPH UHJUHWWKDW,PXVWVWHSGRZQ:K\" /HDYLQJWKH)RUHLJQ2IÀFHLQWRZKLFK ,ZDVERUQZDVDPDMRUGHFLVLRQ GULYHQE\DVWURQJZLVKWROLYHLQP\ RZQFRXQWU\SXWGRZQURRWVDQGPDNH IULHQGVKHUH7KH$QJOR6SDQLVK 6RFLHW\KDVJLYHQP\KXVEDQG'DYLG DQGPHDJUHDWRSSRUWXQLW\WRPHHW QHZSHRSOHDQGGHYHORSQHZLQWHUHVWV ZKLFKZHKDYHKXJHO\HQMR\HG ,DOVRZDQWHGWRJRRQZRUNLQJEXWLQ GLIIHUHQWDUHDVOLNHHGXFDWLRQ+HUH WRRWKH$QJOR6SDQLVK6RFLHW\KDV EHHQZRQGHUIXO'XULQJWKHSDVW WKUHH\HDUVZLWKRXUIDQWDVWLF3ULQFL SDO6XSSRUWHUVRXUJHQHURXVFRUSRUDWH VSRQVRUVDQGDERYHDOO\RXRXUPHP EHUVZHKDYHUDLVHGRYHU IRUSRVWJUDGXDWHVFKRODUVKLSVDQG EXUVDULHVWRSURPRWHLQVWLWXWLRQDODQG LQGLYLGXDOFRQQHFWLRQVEHWZHHQWKH 8.DQG6SDLQ:HQRZKDYHRYHU DOXPQLDUHFRUGWREHSURXGRI2XU IUHTXHQWDQGYDULHGHYHQWVDQGRXU VXSHUEPDJD]LQH/D5HYLVWDDUHDOVR WHVWDPHQWWRDYLEUDQW6RFLHW\JRLQJ IURPVWUHQJWKWRVWUHQJWK ,IDGLSORPDW·VLWLQHUDQWOLIHWHDFKHV \RXDQ\WKLQJLWLVWKDWWKHZRUOGLV DOZD\VFKDQJLQJDQGWKLQJVPRYHRQ ,QP\GLDU\ZDVHPSW\DQG,ZDV DEOHWRGHYRWHUHDOWLPHDQGHQHUJ\ WRWKH6RFLHW\1RZKDSSLO\IRUPH ,KDYHQHYHUEHHQEXVLHUDQG,KDYH KDGWRUHFRJQLVHWKDW,FDQQRWJRGRLQJ ,IUM,MVQ[M0WT\ MXVWLFHWRWKHLPSRUWDQWUROHRIEHLQJ \RXU&KDLU 7UXVWHHVKDYHFKRVHQ-LPP\%XUQV DVWKHQH[WFKDLUDIDQWDVWLFFKRLFH 6RPHRI\RXPD\UHJUHWWKHSDVV LQJRIWKHWUDGLWLRQWKDWWKH&KDLU LVDIRUPHU%ULWLVK$PEDVVDGRUWR 0DGULG,GRQ·W2XUPHPEHUVKLSLV \RXQJHUDQGPRUHGLYHUVHWKDQHYHU <RXUFKDLUQHHGVWREHVRPHRQHZKR LVHTXDOO\DWKRPHLQERWKFXOWXUHV DKXJHHQWKXVLDVWDOZD\VUHDG\WR VHL]HQHZRSSRUWXQLWLHVDQGZLWKD ZRQGHUIXOQHWZRUNRIFRQWDFWVLQERWK FRXQWULHV6WHS IRUZDUG-LPP\ %XUQV0DUDxRQ -LPP\%XUQVZLWK'DPH'HQLVH+ROW )RUPHWKLVLVQRW DGLRVMXVWKDVWD SURQWR,ZLOOUHPDLQ D7UXVWHHDQGORRN IRUZDUGWRVHHLQJ PDQ\RI\RXDWIRUWK FRPLQJHYHQWV 7KH(GLWRUZULWHV ´'DPH'HQLVHKDV EHHQDQLQVSLUDWLRQDO OHDGHUPDQDJLQJ WKH6RFLHW\WKURXJK WXUEXOHQWHFRQRPLF WLPHVZLWKVHUHQLW\ DQGZLVGRP2YHU WKHODVWWKUHH\HDUV WKH6RFLHW\KDVVHHQ DJURZWKLQLWVLQGL YLGXDODQGFRUSRUDWH PHPEHUVKLSDQG VWUHQJWKHQHGVXSSRUW IRULWVVFKRODUVKLS SURJUDPPH$VWKH QHZ&KDLU,KRSHWR EXLOGRQKHUDFKLHYH PHQWV$V1HZPDQ RQFHVDLGWRJURZLV WRFKDQJHµ _/$5(9,67$_635,1*,668(_ 16.7+=; 6SDQLVKIRRGDQGWKH8. 5IZyI2W[u;M^QTTI /HIW7R\D/HJLGR &HQWHU7R\D /HJLGR\7RPiV =DU]D 5LJKW)HUQDQGR 0DGDULDJD /D*DVWURQRPtDHVSDxRODHQHO5HLQR 8QLGR²8QUHWRDSXQWRGHVHUFRQ TXLVWDGR 8QGtDGHYHUDQRGHIXLD UHFRJHUDODHURSXHUWRGH*DWZLFND 3HGUR6XELMDQDGXHxRGHOUHVWDXUDQWH $NHODUUHHQ6DQ6HEDVWLiQXQUHVWDX UDQWHTXHHQODDFWXDOLGDGFXHQWDFRQ WUHVHVWUHOODV0LFKHOLQ(VSDxDKDEtD RUJDQL]DGRRÀFLDOPHQWHXQDFRPLGD \XQDFHQDHQHO+RWHO'RUFKHVWHU ORQGLQHQVH\HUDODSULPHUDYH]TXH XQJUDQUHVWDXUDGRUHVSDxROLEDDHQ IUHQWDUVHDODFUtWLFDJDVWURQyPLFDGHO SDtV3HGUR6XELMDQDSHUWHQHFtDDXQ JUXSRGHFRFLQHURVYDVFRVTXHGHVGH YHQtDQWUDEDMDQGRHQXQSUR\HFWR UHYROXFLRQDULRGHFRFLQDFRQRFLGR FRPR´/D1XHYDFRFLQD9DVFDµ(VWH SUR\HFWRLEDDFRQYHUWLUVHHQXQRGH ORVSLODUHVGRQGHGHVFDQVDUtDODODERU GHSUHVWLJLRVRVFRFLQHURVHVSDxROHV TXHLEDQDGLFWDUGXUDQWHYDULDV GpFDGDVHQHOPXQGRODVSDXWDVGHOD FUHDWLYLGDG\ODLQQRYDFLyQHQODDOWD FRFLQDOLGHUDGRVSRU)HUUiQ$GULi +R\(VSDxDHVXQDFDQWHUDGHGRQGH VLJXHQVDOLHQGRFRFLQHURVEULOODQWHVHQ EXVFDGHVXGHVWLQRVHDGRQGHVHD +DVWDSULQFLSLRVGHORVHOFRQR FLPLHQWRGHODFRFLQDHVSDxRODHQ HO5HLQR8QLGRHUDPX\OLPLWDGRH LQFOXVRQHJDWLYR(VWDEDEDVDGRHQOD FRFLQDTXHHOWXULVWDHQFRQWUDEDHQODV FRVWDV\HQXQQ~PHURGHUHVWDXUDQWHV HVSDxROHVDELHUWRVHQFLXGDGHVFRPR /RQGUHVR1XHYD<RUNTXHQRVLHP SUHHVWDEDQGLULJLGRVSRUSURIHVLRQ DOHVGHODUHVWDXUDFLyQ(VWRVUHVWDX UDQWHVVLELHQHUDQSHUIHFWDPHQWH KRQHVWRVQRFRQVHJXtDQRIUHFHUOR PHMRUGHODFRFLQDHVSDxRODGHVLHP SUHUHJLRQDO\VDEURVD7DPSRFR UHÁHMDEDQORVFDPELRV\DDÀDQ]DGRV HQODDOWDFRFLQDHVSHFLDOPHQWHHQHO 3DtV9DVFR\HQ&DWDOXxDGHODPDQR _/$5(9,67$_635,1*,668(_ GHFRFLQHURVH[FHSFLRQDOHVGLVSXHVWRV DRIUHFHUXQDDOWHUQDWLYDH[FLWDQWH\ RULJLQDO+D\TXHUHFRUGDUTXHODDOWD FRFLQDHQ(VSDxDKDEtDHVWDGRH[ FOXVLYDPHQWHLQÁXHQFLDGDSRUODDOWD FRFLQDIUDQFHVDVLQKDEHUFRQVHJXLGR OOHJDUDODDOWXUDGHHVWD $SDUWHGHXQJUXSRPX\UHGXFLGR GHSHULRGLVWDV\DXWRUHVGHOLEURV GHFRFLQD\YLQRVTXHHPSH]DEDQD HVSHFLDOL]DUVHHQHOWHPDHVSDxROOD SHUFHSFLyQTXHWHQtDHOEULWiQLFRHQ JHQHUDOHUDTXHODFRFLQDHVSDxRODQR HUDEXHQDWRGRVDEtDH[FHVLYDPHQWH DDMR\QDGDEDHQDFHLWH(VFLHUWR TXHDSDUWHGHIUXWDIUHVFD\PXFKDV YHUGXUDV\KRUWDOL]DVHUDGLItFLO HQFRQWUDUHQHOPHUFDGREULWiQLFR DXWpQWLFRVLQJUHGLHQWHVVLQORV FXDOHVODFRFLQDHVSDxRODQRSRGtD VHUUHSURGXFLGDFRUUHFWDPHQWHHQHO H[WHULRU$GHPiVH[LVWtDRWURSURE OHPDPXFKRPiVGLItFLOGHUHVROYHU ORVMyYHQHVFRFLQHURVHVSDxROHVELHQ IRUPDGRV\PX\SURIHVLRQDOHVHUD SRFRDPLJRVGHYLDMDU\PXFKRPHQRV GHWUDEDMDUHQRWURVSDtVHV/DVEDU UHUDVFRQODVTXHVHHQFRQWUDEDHUDQ WDQUHDOHVFRPRORVULHVJRVTXHQR HVWDEDQGLVSXHVWRVDDVXPLUOHQJXDV LPSRVLEOHVGHDSUHQGHUGHXQGtDSDUD RWURFRVWXPEUHV\KRUDULRVTXHQR FRQRFtDQSURORQJDGDVHSDUDFLyQ GHVXVIDPLOLDV\GHVXVDPLJRV 'HVGHXQSXQWRGHYLVWDHFRQyPLFR (VSDxDIXQFLRQDEDFDGDYH]PHMRU \QRWHQtDQQLQJXQDQHFHVLGDGGH HPEDUFDUVHHQQXHYDVDYHQWXUDV&RQ DOJXQDH[FHSFLyQWDPSRFRFRQWDEDQ FRQODDPELFLyQRYLVLyQHPSUHVDULDO QHFHVDULDSDUDSRGHUSURJUHVDUHQHO H[WHULRUGHODPLVPDIRUPDTXH\DOR HVWDEDQKDFLHQGRHQ(VSDxD +DOORYLGRPXFKRGHVGHORV\HO SURGXFWRGHDOWDFDOLGDGHVSDxRO\D HVWiSUHVHQWHHQODVHVWDQWHUtDVGHORV 7HVFRVORV:DLWURVHV\ODVWLHQ GDVJRXUPHW3RUÀQSRGHPRVGHFLU TXHHQORTXHVHUHÀHUHDOPHQRVD XQDSDUWHGHODRIHUWDJDVWURQyPLFD HVSDxRODHQHO5HLQR8QLGRHVWD PRVGH´ÀHVWDPD\RUµ3RUÀQKHPRV HQFRQWUDGRXQDIyUPXODH[LVWRVDHQOD TXHHVSDxROHV\EULWiQLFRVHVWiQGLV SXHVWRVDLQYHUWLU6RQORV7DSDV%DUV 7DSDV5HVWDXUDQWV\ORV6KHUU\%DUV TXHHQORV~OWLPRVDxRVKDQFUHFLGR WDQWRHQQ~PHURFRPRHQODFDOLGDG GHVXRIHUWD $SHVDUGHORDQWHULRUTXHGDXQUHWR SDUDODFRQTXLVWDÀQDOGHOSDODGDU EULWiQLFR\HOUHFRQRFLPLHQWRGHOD FRFLQDHVSDxROD1HFHVLWDPRVDEULU HQHO5HLQR8QLGR\HQRWURVSDtVHV PiVUHVWDXUDQWHVTXHSXHGDQOOHJDU DSRVLFLRQDUVHHQWUHORVPHMRUHV GHOPXQGR(QPLRSLQLyQHOUHWR ÀQDOYDDGHVFDQVDUHQODÀJXUDGHO FRFLQHURHVSDxROMRYHQRPDGXUR TXHDWUDYHVDQGRODVEDUUHUDVGHVXV SURSLRVPLHGRVSXHGDWDPELpQWHQHU ODRSRUWXQLGDGGHFRQYHUWLUVHHQXQ HPSUHVDULRFRQIXWXUR4XHOOHJXHD /RQGUHVRD/LYHUSRROFDUJDGRGH LOXVLRQHV\SUR\HFWRV\GHSODWRV RIUHFLHQGRORPHMRUGHVXFRFLQD6LP SOHPHQWHORTXHQHFHVLWDHVFRQWLQXDU KDFLHQGRORTXHDSUHQGLyDFUHDUWUDV DxRVGHGXURWUDEDMRHQODVFRFLQDV GHVXVPDHVWURVHQ6DQ6HEDVWLiQ %DUFHORQDR&iFHUHV3RUXQDYH] ODSUREOHPiWLFDHFRQyPLFDSRUODTXH DWUDYLHVD(VSDxDOHVSXHGHD\XGDUD FUX]DUHOFKDUFR6pTXHDOJXQRV\D ORHVWiQKDFLHQGR 0DUtD-RVp6HYLOODWKH'LUHFWRU RIWKH)RRGV:LQHVIURP6SDLQ 'HSDUWPHQWDWWKH6SDQLVK7UDGH &RPPLVVLRQLQ/RQGRQ6KHLVWKH DXWKRURIVHYHUDOERRNVDQGD79 EURDGFDVWHU <0--,1<7:¼;+071+2QUUa*]ZV[ (DWLQJLQDQGRXW 2QHRIP\IDYRXULWHZDONVLQ/RQ GRQWDNHVPHIURP1RWWLQJ*DWHWXEH VWDWLRQDORQJWKH3RUWREHOOR5RDGWR *DUFLD6RQV 7KLVIDPLO\RZQHGVXSHUPDUNHWLVVR ZHOOVWRFNHGZLWKVXFKDYDULHW\RI TXDOLW\6SDQLVKIRRGDQGZLQHVWKDW \RXEUHDWKHDQGIHHO6SDLQIURPWKH PRPHQW\RXVWHSLQ$V7RQ\*DUFLD H[SODLQV´7KLVKDVEHFRPHDSRLQW RIUHIHUHQFH1RWMXVW/RQGRQHUVEXW SHRSOHIURP3DULVWR1HZ<RUNFRPH KHUHEHFDXVHQRZKHUHRXWVLGH6SDLQ FDQ\RXÀQGVXFKDQDYDLODELOLW\RI 6SDQLVKIRRGSURGXFWVLQRQHSODFHµ 7RQ\DÁXHQW(QJOLVKVSHDNHULVWKH WKLUGJHQHUDWLRQ*DUFLDWREHLQYROYHG LQRQHRI/RQGRQ·VPRVWHQGXULQJ 6SDQLVKIRRGHQWHUSULVHV,WZDVKLV LPPLJUDQW$QGDOXFLDQJUDQGIDWKHU )UDQFLVFRZKRODLGWKHIRXQGDWLRQV LQWKH·VZLWKDVPDOOVKRSWKHQ ORFDWHGIXUWKHUDORQJWKHVWUHHW ZLWKVRPHEDVLFSURGXFWVOLNHROLYH RLOIUXLWDQGFKRUL]R´,WZDVWKH WLPHZKHQWKHPDLQQHZLPPLJUDQW SRSXODWLRQLQ/RQGRQZDV&DULEEHDQ DORQJZLWKIHZHU6SDQLDUGVVRWKDW ZHVWRFNHGXSRQRWKHUSURGXFWVOLNH FRUQHGEHHIDQGKRWVDXFHVµUHFDOOV 7RQ\·VIDWKHU5DIDHOZKRDOVRZRUNV LQWKHVXSHUPDUNHW 7KH*DUFLDEXVLQHVVKDVLQFUHDVLQJO\ EHQHÀWHGRYHUWKH\HDUVIURPWKHKXJH LQÁX[JURZWKRI6SDQLDUGVLQWR/RQ GRQDQGWKHVLPLODUO\JURZLQJQXPEHU RI%ULWLVKSHRSOHZKRKDYHVRPHFRQ QHFWLRQZLWK6SDLQ´,QWZHQW\\HDUV 6SDQLVKIRRGKDVEHFRPHPXFKEHWWHU NQRZQDQGUHVSHFWHG7DSDVKDYHEH FRPHDVSRSXODUDVSL]]DVµVD\V7RQ\ ,W·VQRWTXLWHWKHFRPSDULVRQ$EHO /XVDIRXQGHURI&DPELRGH7HUFLR ZRXOGPDNHEXWWKHQKLV6SDQLVK HDWHULHVRQHQHDU3DUVRQV*UHHQ WKUHHRWKHUVDORQJWKH2OG%URPS WRQ5RDGDSSHDOQRWMXVWWRORYHUVRI 6SDQLVKIRRGSURGXFWVEXWFOLHQWVZKR DSSUHFLDWHWKHPFRRNHGZLWKVRPH UHÀQHPHQWDQGDQGVHUYHGZLWKHIIRUW OHVVVW\OH2QHRIWKHHDUO\SLRQHHUVRI /D1XHYD&RFLQD(VSDxRODLQ/RQGRQ /XVDQRZERDVWVDVRSKLVWLFDWHGFOLHQ WHOHRI9,3·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²RU,EHULFDFRQFHSWDVLW LVEUDQGHGLVFRQFHLYHGDVDFXOWXUDO SKHQRPHQRQIURPDUWLVDQWDSDVDW WDEOHWKURXJKWRTXDOLW\SURGXFWVDOHV DQGKRPHGHOLYHULHV :KLOH0DUFRVOLNHVWRGHOHJDWHWRKLV VWDII\RXFDQ·WUHDOO\H[SHULHQFH-RVp DQG3L]DUURZLWKRXWWKHSUHVHQFHRI WKHPDQZKRRZQVDQGJDYHKLVQDPH WRERWKHVWDEOLVKPHQWVLQ%HUPRQGVH\ QHDU/RQGRQ%ULGJH7UDLQHGDVDFKHI LQ&iFHUHV([WUHPDGXUDIURPZKHUH KHJUHZXSIURPKXPEOHEHJLQQLQJV -RVp3L]DUURKDVPDGHDKXJHVXFFHVV RIKLVOLIHLQ/RQGRQÀUVWDVDFKHIDW DQRWKHUÁDJVKLSRI6SDQLVKJDVWURQR P\%ULQGLVDDQGQRZDVWKHRZQHURI KLVQROHVVMXVWLÀDEO\SRSXODURZQEDU DQGUHVWDXUDQWDQGWKHDXWKRURIWZR H[FHOOHQWUHFLSHERRNV´,·PLQVSLUHG E\ORFDOLQJUHGLHQWVWKDW,ÀQGLQWKH IRRGPDUNHWVHYHU\GD\WKHLQFUHG LEOHTXDOLW\RI6SDQLVKIRRGVWXIIVWKDW ,KDYHDFFHVVWRDQGRIFRXUVHP\ URRWVLQUXUDO6SDLQµVD\V-RVpZKRVH FXOLQDU\VNLOOVDQGVLPSDWLFRQDWXUH KDYHEHHQVKRZQRIIWRJRRGHIIHFWRQ %ULWLVK79SURJUDPPHV FHQWHU &DPELR·V $EHO/XVD 0HDQZKLOHLQWKHKHDUWRIWKH&LW\$V WXULDQEXVLQHVVPDQ-DYLHU)HUQiQGH] ZKRZDVUHFHQWO\HOHFWHG&KDLUPDQRI WKH6SDQLVK&KDPEHURI&RPPHUFHLQ WKH8.KDVORFDWHG+LVSDQLDDUJX DEO\KLVPRVWDPELWLRXVQHZ6SDQ LVKIRRGYHQWXUHLQ/RQGRQWRGDWH +LVSDQLD·VPRUHWKDQVTXDUH PHWHUVHQFRPSDVVHV-DYLHU·VSODQVIRU DUHVWDXUDQWWDSDVEDUJRXUPHWVKRS DQGRWKHUIDFLOLWLHVGHVLJQHGDVD6SDQ LVKJDVWURQRPLFHQFODYHRQHVKRXOG IHHOUHOXFWDQWWRHVFDSHIURP /DVWEXWE\QRPHDQVOHDVWLQP\SHU VRQDOFKRLFHRIIDYRULWH/DWLQRHDWHULHV LVRQHRI/RQGRQ·VEHVWNHSWVHFUHWV WKHIDUOHVVNQRZQ(O9HUJHO´,WLVQ·W DIRUPDOUHVWDXUDQWLW·VDERXWVKDULQJ KRZZHOLNHWRHDWJRRGIRRGDQGD UHOD[HGDWPRVSKHUHZLWKWKHSXEOLFµ VD\VRZQHUDQGPDQDJHU6WHOODGH *DUFLDD*UHHN&\SULRWPDUULHGWR KHU&KLOHDQEXVLQHVVSDUWQHU7KLV XQGHUVWDWHG/DWLQ$PHULFDQ0HGLWHU UDQHDQFDIpWDNHDZD\DEXVVWRSDZD\ IURPWKHSUHVWLJLRXVKHDGTXDUWHUVRI 7KH)LQDQFLDO7LPHVQHDU6RXWKZDUN %ULGJHZDVDSOHDVDQWGLVFRYHU\IRU PHZKHQ,ÀUVWGLVFRYHUHGLWZKLOH ZRUNLQJDWWKHQHZVSDSHUDIHZ\HDUV DJR,WVQHZSUHPLVHVDUHPXFKELJJHU DQGZHOFRPLQJWKDQLWVSUHGHFHVVRU DQGVWLOOGHVLJQHGLQDURXJKUXVWLF GpFRUZLWKORQJFRPPXQDOWDEOHVDW ZKLFKVLWDZRQGHUIXOO\PL[HGFOLHQ WHOHUDQJLQJIURPORFDODUWLVWVDQGOR FDODXWKRULW\ZRUNHUVWR&LW\EDQNHUV DQGODZ\HUV)URPEUHDNIDVWWKURXJK WROXQFK(O9HUJHO·VOLYHO\FUHZRI HQHUJHWLF\RXQJIHPDOHFRRNVDQG ZDLWUHVVHVVHUYHRXWDZRQGHUIXOXQ SUHWHQWLRXVRIIHULQJIURPWKH+LVSDQLF ZRUOG·VNLWFKHQIURPVSLF\VFUDPEOHG HJJVZLWKFKRUL]RRUNLGQH\EHDQV WRVWHDNZLWKDYRFDGRDQGWRPDWRLQ &KLOHDQÁDWEUHDGDPRQJWKHUDQJHRQ RIIHU%HFDXVHRILWVVSDFHDQGÁH[LEOH VHDWLQJ(O9HUJHOLVDSHUIHFWYHQXH IRUDQLQIRUPDOSULYDWHSDUW\7KH PHQXRI/DWLQRÀHVWDDQGWDNHDZD\ GHOLJKWVRQRIIHULQFOXGHVRPHGHOL FLRXVDUJHQWLQHVW\OHHPSDQDGDVDQGD YHU\6SDQLVKWRUWLOODÀUPHQRXJKQRW WRGLVLQWHJUDWHLQRQH·VÀQJHUVEXWIXOO RIWDVWH£4Xp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¶SDWDWD·,VD\¶SRWDWR· 7KHKXPEOHSRWDWRDQLQJUHGLHQW ZKLFKRQHFDQKDUGO\DYRLGLQ%ULW LVKUHFLSHVZDVLQWURGXFHGWRWKH 2OG:RUOGE\ZD\RI&ROXPEXV·V H[SORUDWLRQVLQWKH1HZ:RUOG+H ÀUVWEURXJKWEDFNWKHWXEHUVWKDWZH QRZNQRZDV\DPVRUVZHHWSRWDWRHV 6SDQLVKH[SORUDWLRQVLQWKH$QGHDQ UHJLRQVZRXOGODWHUGLJXSWKHURRWV WKDWWKH4XHFKXDFDOOHGSDSDVDQG WKH6SDQLDUGVZRXOGHYHQWXDOO\FDOO SDWDWDV &HUHWDQXPMHUH]VKHUU\ 7KHVZHHW$QGDOXVLDQZLQHZHFDOO VKHUU\KDVLWVRULJLQVLQWKHWRZQRI _/$5(9,67$_635,1*,668(_ -HUH]GHOD)URQWHUD,WÀUVWFURVVHG WKH(QJOLVKIURQWLHULQZKHQD VKLSORDGRIVKHUU\OHIWWKH3XHUWRGH 6DQWD0DUtDDQGDUULYHGLQ3O\PRXWK 7KH5RPDQVKDGÀUVWFDOOHGWKLVGULQN FHUHWDQXPEHFDXVHWKH/DWLQQDPHIRU WKHWRZQRI-HUH]ZDV&HUHW$IWHUFHQ WXULHVRIJRRGGULQNLQJDQGSHUKDSVD ELWRIVOXUUHGVSHHFKWKHWRZQ·VQDPH EHFDPH-HUH]7KH(QJOLVKOLNHZLVH DIWHUDIHZERWWOHVIRXQG-HUH]LPSRV VLEOHWRSURQRXQFH6KHUU\LWZDV ,IOLIHJLYHV\RXOHPRQVPDNHOHPRQ DGH,IOLIHJLYHV\RX6HYLOOHRUDQJHV PDNHPDUPDODGH 6RPHWKLQJVLPLODUKDSSHQHGZKHQ WKH%ULWLVKDWWHPSWHGWRVD\WKHQDPH RIWKHELWWHUVZHHWSUHVHUYHWKDWWKH\ EURXJKWEDFNIURP6HYLOOHLQWKH VHYHQWHHQWKDQGHLJKWHHQWKFHQWXULHV 6IKPW5IVbIVW 6XFKDSHUFHSWLRQQRUPDOO\FRPHV IURPWKRVHZKRHPEUDFHRQO\ WKHWUDGLWLRQDODQGUHMHFWPRYLQJ IRUZDUG,QVLWXDWLRQVDVWKHRQH 6SDLQLVOLYLQJQRZPDQ\GHWUDFWRUV HPHUJHDQGWKH\IHHOWKH\DUHWKH ZLQQHUVRIDÀJKWWKHLURZQÀJKW ZKLFKLVIXWLOHDQGHPSW\ 0\VHOIDVDFRRN,IHHO,PXVW UHVSHFWWUDGLWLRQEXWDOVRHPEUDFH FKDQJH2QHRIWKHPRVWLPSRUWDQW LVVXHVLVWRPRYHIRUZDUGEXWDOZD\V ORRNLQJEDFNDQGQRWIRUJHWWLQJZKR ZHDUHDQGZKHUHZHFRPHIURP ,WLVDVLI\RXOHDYH\RXUKRPHLQD SUDLULHEXW\RXNHHSRQORRNLQJEDFN VRWKDW\RXGRQ·WORVHVLJKWRILW 7KHUHLVPXFKPRUHXQLI\LQJFRRNV WKDQVHSDUDWLQJWKHP7KHUHDUHRQO\ WZRW\SHVRIFXLVLQHJRRGFXLVLQH DQGEDGFXLVLQH7UDGLWLRQDORUPRG HUQDUHDFRPPRQGHQRPLQDWRUZKHQ ZKDWZHZDQWLVWRFRRNJRRGIRRG <RXFDQQRWUHMHFWRQHW\SHRIFRFLQD RUDW\SHRIDUFKLWHFWXUHRUSDLQWLQJ MXVWEHFDXVH\RXGRQ·WOLNHLW 1DFKR0DQ]DQRLVWKHRZQHURI &DVD0DUFLDOWKHWZR0LFKHOLQ VWDUUHGUHVWDXUDQWLQ$VWXULDV DQG([HFXWLYH&KHIRI,EpULFDLQ /RQGRQ 7KHRUDQJHVWKDWOLQHWKHVWUHHWVRI 6HYLOOHDUHQRWRULRXVO\LQHGLEOH³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iQEHFDPHWKH(QJOLVKPDU]LSDQ 8-:;76)4>1-? 6SDLQEH\RQG 7KH%UHDG&LUFXV RQOLNH6SDLQ·VVSRUWLQJGRPLQDQFH 7KHUHDUHPDQ\/RQGRQEDVHGFKHIV ZKRVHFUHDWLYLW\DQGH[SUHVVLYHQHVV DUHIXHOOLQJWKH%ULWLVKSDVVLRQIRU PRGHUQ6SDQLVKJDVWURQRP\DQGZH NQRZWKDWPRUHDUHSODQQLQJWRFRPH %XWLW·VDOVRYHU\LPSRUWDQWWRPHQ WLRQWKDWWKH6SDQLVKZLQHLQGXVWU\ LVJHWWLQJLWVUHFRJQLWLRQ$QRWKHU WULXPSKLQWKH6SDQLVKZLQHZRUOGLV GRFXPHQWHGHYHU\ZHHNDQGWKHVHWUL XPSKVDUHFRQWDJLRXVHVSHFLDOO\ZLWK WKH8.FRQVXPHUDQGZLQHORYHU /HW·VEHPRUHSRVLWLYHVQRZDQGKDYH DORRNDWWKDWVDPHERWWOHEXWZLWKWKH KDOIIXOOYLHZ &ULVLVLVWLPHIRUFUHDWLYLW\RSSRUWX QLWLHVDQGKDUGZRUNOHW·VVKRZWKH ZRUOGDQGLQSDUWLFXODUWKH8.KRZ RXUJDVWURQRP\DQGRXUZLQHVFDQ PDNHWKHGLIIHUHQFHMXVWDVRXUIRRW EDOOHUVKDYHGRQH )URPWKHZLOGPDMHVWLF3\UHQHHVRXU FRXQWU\VWUHWFKHVVRXWKDFURVVVXQ GUHQFKHGSODLQVZRUNLQJLWVP\VWHUL RXVPDJLFRQDQ\RQHZKRYLVLWV$Q LUUHSUHVVLEOH]HVWIRUOLIHFUHDWLYLW\ DQGH[SUHVVLYHQHVVFKDUDFWHUL]HRXU VSLULWDQGLQSDUWLFXODURXUJDVWURQ RP\ /HGE\)HUUDQ$GULj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¶(O*DVWUR6LJORGH2UR ,,·WKH6HFRQG*DVWUR*ROGHQ$JH´ 6SDLQLVOLYLQJDWDJDVWURQRPLFDODSH[ LQZKLFKWKHQHZZDYHRI&KHIV6RP PHOLHUVZLQHPDNHUVDQGPDQ\RWKHUV KDYHEHFRPHWUXH6SDQLVKDPEDVVD GRUVH[SDQGLQJWKHFRXQWU\·V*DV WURQRP\PRYHPHQWWKURXJKWKHZRUOG 6RHDWGULQNHQMR\DQGEUHDWKH6SDLQ DWLWVEHVW %UXQR0DUFLDQR /HW·VJHWVWDUWHGZLWKWKHYLHZWKDW ORRNVDWWKHERWWOHKDOIHPSW\,WLV VDGEXWDUHDOLVVXHWKHPHVVWKDWLV 6SDLQ·VHFRQRP\7KHFRQVWUXFWLRQ LQGXVWU\KDVFROODSVHGOHDYLQJKXQ GUHGVRIWKRXVDQGVRXWRIZRUN2YHU LQGHEWHGKRPHRZQHUVIDFHÀQDQFLDO PLVHU\DQGKDYHFXWEDFNRQVSHQGLQJ $QGWKHEDQNVDUHVWDULQJDWDPRXQW LQJSLOHRIEDGPRUWJDJHGHEWV $OORIZKLFKPHDQVWKDWQRZMXVW OLNHWKH8.6SDLQ·VJRYHUQPHQW ÀQGVLWVHOIERUURZLQJDQGVSHQG LQJOLNHFUD]\WRVWRSLWVHFRQRP\ IURPFROODSVLQJDOWRJHWKHU,Q6SDLQ XQHPSOR\PHQWKDVULVHQWRRIWKH ZRUNIRUFHZKLFKPHDQVIHZHUSHRSOH SD\LQJLQFRPHWD[HVDQGPRUHSHRSOH GHPDQGLQJEHQHÀWVIURPWKHJRYHUQ PHQW $QG\HW-XOLXV&DHVDU·V5RPDQWLPHV WKH%UHDG&LUFXVIRUPXODGLGZRUN DQGORRNVOLNHQRZDVLPLODUIRUPXOD LVKHOSLQJ6SDLQWRORRNRQWKHEULJKW HUVLGH6SDLQ·VVSRUWLQJGRPLQDQFH JRHVRQDQGRQ1RWVRORQJDJRWKH 6SDQLVKOHDGLQJVSRUWVQHZVSDSHU 0$5&$SURFODLPHGWKHDUULYDO RI¶(O6LJORGH2UR,,·WKH6HFRQG *ROGHQ$JHFRPSDULQJWKHFRXQWU\·V UHFHQWVSRUWVVXFFHVVZLWKWKHWK DQGWKFHQWXULHVZKHQWKHFRXQWU\ OLYHGDWDFXOWXUDODSH[LQZKLFKDOOWKH DUWVÁ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·V%DU *DXFKRULYDOVWKDWRIWKHÀUVWGD\RI +DUURGV-DQXDU\VDOHV7KHGLIIHUHQFH LVWKDWWKHFURZGVDW(O*DXFKRFDQEH IRXQGWKUHHGHHSDWWKHEDUDQ\QLJKW RIWKH\HDU%\HLJKWSPMXVWJHWWLQJ LQWKURXJKWKHGRRUVLVDQDFKLHYH PHQWEXWLWLVZRUWKWKHVWUXJJOH(O *DXFKRKDVZDONHGRIIZLWKPRUH SUL]HVWKDQDQ\RILWVULYDOVLQ3DP SORQD·VDQQXDO6HPDQDGHO3LQW[R FRPSHWLWLRQ ,I\RXPDNHLWSDVWWKHPXOWLWXGH ZKDW\RXZLOOVHHDUUD\HGDORQJWKH SROLVKHGPDKRJDQ\EDUWRSLVDVDP SOLQJRIWKH*DXFKR·VYDULHWLHVRI SLQW[RVRIZKLFKVRPHDUHVHUYHG GDLO\7KHSLQW[RLVWKHFXOLQDU\SULGH RI1DYDUUDDQGWKH%DVTXH&RXQWU\ ZKHUHLWLVUDLVHGWRDQDUWIRUP8Q OLNHWKHWDSDWKHSLQW[RWHQGVWREHD VPDOOHUPRUHH[TXLVLWHO\HODERUDWHG GHOLFDF\WKDWFDQXVXDOO\EXWDOZD\V EHHDWHQZLWKWKHÀQJHUVLQVWHDGRID NQLIHDQGIRUN 7KHRULJLQDO*DXFKRRSHQHGLWVGRRUV VD\V6U-LPpQH]´,W·VWKHTXDOLW\RI RXUSURGXFWVZKLFKDUHGUDZQIURP WKHÀQHVWEDVLFLQJUHGLHQWVWREHIRXQG LQ1DYDUUDµ :KLFKDUHWKHKRXVHIDYRXULWHV"2Q DQ\JLYHQHYHQLQJ\RX·UHOLNHO\WR KHDURQHRUPRUHRIWKHÀYHSHRSOH WDNLQJRUGHUVEHKLQGWKHEDUVKRXWLQJ WRWKHNLWFKHQ´'RVGHIRLH'RVµ RUVHHDVZDUPRISHRSOHXUJHQWO\ SRLQWLQJDWVHDXUFKLQVKHOOVRIJUDWL QHHGW[DQJXUURFUDERUVSLQDFKDQG SUDZQVLQÀORSDVWU\7KH*DXFKR·V ODWHVWFRRNHU\ERRN3LQW[RVSHTXHxR ERFDGRJUDQSODFHULVDQLOOXVWUDWHG HQF\FORSDHGLDRIPRUHWKDQDKXQGUHG YDULHWLHVRIPLQLDWXUHKDXWHFXLVLQH IURPDUHODWLYHO\VWUDLJKWIRUZDUGIUHVK SDVWDZLWKPXVKURRPVDQGWUXIÁHVRLO WRDPRUHFRPSOH[VDOPRQZLWKDVSDU DJXVFDUSDFFLRERUDJHÁRZHUDQGFDE EDJHSXUHH6RXQGGDXQWLQJ"0DQ\RI WKHVHSLQW[RVFDQEHPDVWHUHGLQRQH·V RZQNLWFKHQZLWKDELWRISUDFWLFHDQG SDWLHQFH%XWLILW·VDQ\FRQVRODWLRQ EHDULQPLQGWKDWWKHUHDUHÀYHFKHIV DWZRUNLQ(O*DXFKR·VNLWFKHQ LQDVDFDIpQH[WWRWKH3OD]DGHO &DVWLOOR7KHQDPHGHULYHVIURPLWV RULJLQDORZQHUV3DPSORQDHPLJUDQWV ZKRUHWXUQHGIURP$UJHQWLQDZKHUH WKH\VHWXSDEDUQRWGLVVLPLODUWR WKHPDQ\DURXQGWKHSOD]D,Q WZRHQWHUSULVLQJFRXSOHVWRRNRYHU WKH*DXFKRZLWKWKHLGHDRIRIIHULQJ VRPHWKLQJPRUHLQVSLUHG ´:HGHFLGHGWRVSHFLDOLVHLQSLQW[RV ZLWKDPRGHUQWRXFKµVD\V5REHUW -LPpQH]RQHRIWKH*DXFKR·VIRXU FRRZQHUV´:HVSHQGDORWRIWLPH ÀQGLQJRXWZKDW·VRQRIIHULQ3DP SORQD·VUHVWDXUDQWVDQGZHH[SHULPHQW E\FUHDWLQJSLQW[RVEDVHGRQVRPH RIWKHVHGLVKHVDVZHOODVFRPLQJXS ZLWKRXURZQLGHDV,W·VDSDLQVWDN LQJDQGWLPHFRQVXPLQJSURFHVVEXW MXGJLQJE\WKHFURZGV\RXVHHDWWKH EDU,·GVD\ZHKDYHDKRXVHIXOORI VDWLVÀHGFXVWRPHUVµ (O*DXFKRKDVHYHQWDNHQLWVSLQW[RV DEURDGZKHUHWKH\ZHUHDFFODLPHGDW JDVWURQRP\IHVWLYDOVLQ/RQGRQDQG 0XQLFK´7KHVHFUHWRIRXUVXFFHVV"µ _/$5(9,67$_635,1*,668(_ _/$5(9,67$_635,1*,668(_ )88716<5-6<; $U]DFHQ/RQGUHV -[\MNIVQI:]QTWXM /DFRFLQHUD(OHQD$U]DNGDHOVDOWRJDV WURQyPLFRLQWHUQDFLRQDODODFLXGDGGHO7iPH VLVFRQXQQXHYRHLQWHUHVDQWHSUR\HFWR\SRU HVHPRWLYR/D5HYLVWDKDKDEODGRFRQHOODSDUD TXHQRVFXHQWHHQTXpFRQVLVWH (VXQDGHODVPHMRUHVFRFLQHUDV WDQWRGHQWURFRPRIXHUDGHQXHVWUDV IURQWHUDV\HVTXHVHPDQHMDFRPR SRFRVHQWUHIRJRQHV3HUVRQDGLVFUHWD WtPLGDVHQFLOOD\PX\DXWRFUtWLFDKD VDELGRJDQDUVHODFRQÀDQ]D\HOUHV SHWRGHWRGRVORVFUtWLFRVPXQGLDOHV 7DOYH]HOVHFUHWRGHVXp[LWRUDGLFD HQTXHHVXQDPXMHUHFOpFWLFDTXHQR VLJXHXQDFRUULHQWHFXOLQDULDGHÀQLGD \TXHOHSRQHODVPLVPDVJDQDVKR\ TXHVXSULPHUGtD7RGDYtDUHFXHUGD VXSULPHUDFUHDFLyQXQDHQVDODGDGH ERQLWR 5HFLHQWHPHQWHKDSXHVWRHQPDUFKD XQQXHYRSUR\HFWRDORWURODGRGHO &DQDOGHOD0DQFKDFRQFUHWDPHQWHHQ HOFpQWULFR\VRÀVWLFDGREDUULR/RQG LQHQVHGH%HOJUDYLDMXQWRFRQODH[SH ULHQFLDGHVXVRWURVVRFLRVGH´$U]DN ,QVWUXFWLRQµVXSDGUH0LNHO6RUD]X ,JRU=DODNDLQ\;DELHU*XWLpUUH]/D FDGHQD&202+RWHOV5HVRUWVDEU LUiHOQXHYRUHVWDXUDQWHYDVFRHQ7KH +DONLQHQ%HOJUDYLDGH/RQGUHV /DÀORVRItDGHHVWHHVSDFLRVHEDVDHQ FUHDUXQHVWLORGHFRFLQD~QLFRFRPR ELHQUHFDOFD(OHQD´HVXQFRQFHSWR TXHFRQVLJXHDXQDUODVWUDGLFLRQHVGH ODQXHYDFRFLQDYDVFDODYLQFXODFLyQ GHORVVDERUHVGHODWLHUUD\ODVWpFQL FDVGHGLFKDUHJLyQFRQRWURVWRTXHV PiVPRGHUQRV\YDQJXDUGLVWDVµ 0HTXHGDDOJXQDGXGDVREUHHQTXp FRQVLVWHH[DFWDPHQWHHVWDVRFLHGDGGH ORVPDJQtÀFRV\HV(OHQDRWUDYH] TXLHQPHODGHVSHMD´$U]DN,QVWUXF WLRQHVXQDVRFLHGDGTXHFRPSXVLPRV HQWUH0LNHO6RUD]X;DELHU*XWLpU UH]-XDQ0DUL$U]DN,JRU=DODNDLQ \\RKDFH\DXQRVFLQFRDxRV\FX\R SULQFLSDOVHUYLFLRVHFHQWUDHQDVHVRUDU HODSDUWDGRJDVWURQyPLFRGHRWURV ORFDOHVµ 'HVSXpVGHOOHYDUDFDERRWURV DVHVRUDPLHQWRVHQGLYHUVRVHVSDFLRV _/$5(9,67$_635,1*,668(_ QDFLRQDOHVGHFLGLHURQGDUHOSDVRDOD FRFLQDLQJOHVD¢<SRUTXp/RQGUHV" (OHQDPHUHVSRQGH´$PHWVDHV FRPRXQVXHxRGHFRFLQDPiVDOOiGH QXHVWUDVIURQWHUDV3DUDPL/RQGUHVHV XQDFLXGDGFRQSHUVRQDOLGDGPXOWL FXOWXUDO\JDVWURQyPLFDPHQWHPX\ DELHUWD&XDQGRORVSURSLHWDULRVGHO KRWHOYLQLHURQDTXHOHVHFKiVHPRV XQDPDQRHQHODVHVRUDPLHQWRGHO UHVWDXUDQWHQRVJXVWyHOSODQWHDPLHQWR \QRORGXGDPRVQLXQPRPHQWR7DO YH]WDPELpQLQÁX\yHOKHFKRGHTXH +DONLQHVXQKRWHOSHTXHxR\PX\ID PLOLDUFRQDSHQDVKDELWDFLRQHVTXH WLHQHODVLGHDVPX\FODUDVGHFDUDD VXVFOLHQWHV6RQSURIHVLRQDOHVVHULRV \OHVJXVWDKDFHUODVFRVDVELHQWUHV UD]RQHVYLWDOHVSDUDTXH$U]DN,QVWUXF WLRQFRODERUDVHFRQHOORV6yORHVSHUR TXHWRGRVGLVIUXWHPRVGHOWUDEDMRTXH VHUHDOL]DFRQHOÀQGHTXHHOUHVXOWDGR VHDSHUIHFWRµ 1RWHQJRODPHQRUGXGDTXHWHQGUi PXFKRp[LWRHQHVWDQXHYDDYHQWXUD \HVTXHHVWiFKLFDDGHPiVGHVHU PX\HGXFDGDXQIDFWRULPSRUWDQWH SDUDSRGHUWULXQIDUHVWiPX\ELHQ IRUPDGD3ULPHURFRQHVWXGLRVHQXQD GHODVPHMRUHVHVFXHODVGH+RVWHOHUtD XELFDGDHQ6XL]D\GHVSXpVFRQYDULRV WUDEDMRVHQUHSXWDGRVUHVWDXUDQWHVGH (XURSD&XDQGROHSUHJXQWDVSRUVX H[WHQVR&9HOODFRQWHVWDPX\VLQFHUD ´KHWHQLGRODVXHUWHGHIRUPDUPHHQ ORVSDtVHVGHFRFLQDVPiVDYDQ]DGRV \DGHPiVFRQWDUFRQORVFRQVHMRV GHXQRGHORVPHMRUHVUH\HVHQHVWH FDPSRPLSDGUH-XDQ0DUtD$U]DNµ /yJLFDPHQWHODFXULRVLGDGPHSXHGH\ QRGXGRHQSUHJXQWDU¢FXiOKDVLGRHO PHMRUFRQVHMRTXHOHKDGDGR"5iSLGD PHQWHDxDGH´PXpVWUDWHRUJXOORVDGH WXSURIHVLyQGHÀpQGHOD\GLVIUXWDµ 6XYLGDVHGLYLGHHQWUHVXIDPLOLD \ODFRFLQDGRVSLODUHVIXQGDPHQ WDOHVHQVXUXWLQDGLDULD´DPERVVRQ WRGRSDUDPL\HVWiQHVWUHFKDPHQWH XQLGRV'HVGHSHTXHxDKHFUHFLGRHQ HVWHPXQGR\KHSDVDGRSDUWHGHORV PHMRUHVPRPHQWRV$OSULQFLSLRFRQ PLDEXHODOXHJRFRQPLSDGUH\DKRUD TXHWHYR\DGHFLU«µ7DQWRVDxRVGH GHGLFDFLyQFRQVWDQWHFRQHVDIXHU]D\ HQHUJtDGLDULDKDQFRQVHJXLGRTXHHQ ODHVWDQWHUtDGHVXFDVDEULOOHQPXOWLWXG GHSUHPLRVFRPRHOGHODLQQRYDFLyQ \ODYDQJXDUGLDGHODFRPDUFDGH 'DURFD&KHIGH/$YHQLUGHOD $FDGHPLD,QWHUQDFLRQDOGHOD*DV WURQRPtDRHOPiVUHFLHQWHDOD0HMRU &KHI)HPHQLQDGHO0XQGRRWRUJDGR SRUODUHYLVWD5HVWDXUDQW )XHUDGHVXSURIHVLyQ(OHQDHVXQD SHUVRQDQRUPDO\FRUULHQWHDODTXH OHJXVWDOOHYDUXQDYLGDWUDQTXLODDO ODGRGHORVVX\RV3RUHVRQRHVUDUR HQFRQWUiUVHODGDQGRXQSDVHRFRQ VXKLMRVSRU'RQRVWLVDFDQGRIRWRV GHFXDOTXLHUGHWDOOHTXHOHOODPDOD DWHQFLyQYLVLWDQGRXQDH[SRVLFLyQGH IRWRJUDItDGHYRUDQGRDOJXQDQRYHOD HQODSOD\DRHVFXFKDQGRP~VLFDGH ORV5ROOLQJ (OHQD$U]DFDQGKHU¶,QVWUXFWLRQ7HDP· (VWHIDQLD5XLORSHLVD0DGULG EDVHGMRXUQDOLVW+HUEORJLV KLVWRULDVGHODFKLFDGHODFLXGDG EORJVSRWFRP -6<-:8:1;:KHQ2UDQJHV DUH*RRGIRU<RX ´:HOFRPHWR1DUDQMDVGHO&DUPHQ« DOLWWOHRUDQJHSDUDGLVHEURXJKWWROLIH E\*DEULHO*RQ]DOR)HUQDQGRDQG 3DWULFLD²IRXUVLEOLQJVDQGWKHWKLUG JHQHUDWLRQRIDIDPLO\GHGLFDWHGWR WKHFXOWLYDWLRQRIKLJKTXDOLW\FLWUXV IUXLWVµ 6XFKLVWKH¶ZHOFRPHWRWKHIDPLO\· RQWKH1DUDQMDVGHO&DUPHQZHEVLWH \RXFDQEHIRUJLYHQIRUWKLQNLQJ\RX DUHHQWHULQJDPRGHUQGD\*DUGHQRI (GHQZKHUHLWVWHQDQWVJOLGHJOHHIXOO\ EHWZHHQJODGHVDQGSLFNIUXLWDWZLOO 7KLVKRZHYHUGRHVOLWWOHMXVWLFHWR WKHMRXUQH\WKHIRXUKDYHXQGHUWDNHQ LQWXUQLQJ/D0DVtDHO&DUPHQLQWR DVXFFHVVIXOVPDOOVFDOHZRUNLQJ RUDQJHSODQWDWLRQ 7RXQGHUVWDQGWKHLUVWRU\ZHPXVW UHWXUQWRDQGWR%pWHUD9DOHQFLD $VDVPDOOPXQLFLSDOLW\RQWKHVRXWK HUQVORSHVRIWKH6LHUUD&DOGHURQDLWV JHRJUDSKLFDOSRVLWLRQDQGDIDYRXUDEOH FOLPDWHPDNH%pWHUDDQLGHDOORFDWLRQ IRUWKHFXOWLYDWLRQRIKLJKTXDOLW\FLW UXVIUXLWV,WZDVKHUHLQZKHUH WKHLUPDWHUQDOJUDQGIDWKHUSODQWHG WKHÀUVWRUDQJHWUHHLQ/D0DVtDHO &DUPHQDQGRYHUWLPHGHYHORSHGDQ RUDQJHRIJUHDWTXDOLW\/DERXUFRVWV LQ6SDLQZHUHORZDQGDJXDUDQWHHG JRRGSULFHIRUIUXLWDWWKDWWLPHPHDQW WKHHVWDWHZDVZHOONHSW$OOZDV ZHOOXQWLOWKH\HDUZKHQWKHLU JUDQGIDWKHUGLHG$OHJDOGLVSXWHOHG WRVWDJQDWLRQDQGLWZDVQRWXQWLO WKDWEURWKHUVDQGFRIRXQGHUV*DEULHO DQG*RQ]DORÔUFXORPRYHGWR%pWHUD DQGZHUHDEOHWRVHWWRZRUN :KDWWKH\HQFRXQWHUHGZDVDVKDGRZ RIWKHHVWDWHWKH\UHPHPEHUHGDQG URDPHGGXULQJFKLOGKRRG*RQ]DOR UHPHPEHUVLWFOHDUO\´0DQ\WUHHV ZHUHGHDGDQGKDGQRWEHHQUHSODFHG (YHU\WUHHQHHGHGSUXQLQJ1RWUDF WRUVZHUHZRUNLQJDQGDORWRIZDWHU <QUW\Pa?ITSMZ ZDVJRLQJWRZDVWH7KHHVWDWHZDV ZRUNLQJDWDERXWµ$QDGGLWLRQDO GLIÀFXOW\WKHVLEOLQJVIDFHGZDVWKH EHJLQQLQJVRIWKHÀQDQFLDOFULVLV,Q RUDQJHVDOHVQRORQJHUFRYHUHG SODQWDWLRQUXQQLQJFRVWV´:KROHVDOHUV DQGVXSHUPDUNHWVZHUHLQFUHDVLQJO\ OHVVLQWHUHVWHGLQTXDOLW\DQGPRUH LQWHUHVWHGLQEX\LQJFKHDSHUµVD\V *RQ]DOR$VWUDWHJ\ZDVQHHGHG7KH\ VWDUWHGQDUDQMDVGHOFDUPHQFRP7KLV HQDEOHGWKHPWRPDUNHWDQGVHOOWKHLU SURGXFW$VXFFHVVIXODSSOLFDWLRQIRU (XURSHDQ8QLRQPRQH\PHDQWWKH\ FRXOGEX\DQHZWUDFWRU$WWKHVDPH WLPHWKH\ZHUHDEOHWRUHVWRUHWKHGULS LUULJDWLRQV\VWHPZKLFKKDGIDOOHQLQWR GLVUHSDLUZLWKDQLPPHGLDWHVDYLQJRQ ZDWHU´:KHQZHLQKHULWHGWKHSODQWD WLRQHVWDWHZDWHUFRQVXPSWLRQZDV OLWUHVRYHUWKHVXPPHUDQG GXHWRGDPDJHLWGLGQRWHYHQUHDFKDOO WKHWUHHVµ (QYLURQPHQWDOFUHGHQWLDOVDUHLP SRUWDQWWR1DUDQMDVGHO&DUPHQDQG WKHXOWLPDWHDLPLVRUJDQLFVWDWXV &XUUHQWO\WKH\DGKHUHWRSULQFLSOHV RILQWHJUDWHGSURGXFWLRQDKROLVWLF DSSURDFKLQZKLFKSURWHFWLRQRIWKH HQYLURQPHQWSURÀWDELOLW\DQGVRFLDO UHTXLUHPHQWVDUHDOOWDNHQLQWRDF FRXQWIRUIDUPVXVWDLQDEO\*RQ]DOR LVFDQGLG´1RZHGRQRW\HWKDYHRU JDQLFVWDWXVEXWZHGROLNHWRWKLQNRI RXUVHOYHVDVRSHUDWLQJRUJDQLFDOO\%\ UHGXFLQJLQGXVWULDOSURFHVVHVDQGQRW XVLQJFKHPLFDOSURGXFWVRXUIRRWSULQW LVJUHDWO\UHGXFHGµ7KHKRQHVW\ZLWK ZKLFK*RQ]DORUHVSRQGVPD\VXUSULVH DWÀUVWJODQFH7KLVRSHQQHVVKRZHYHU VHHPVWRHPERG\WKHYHU\IRXQGDWLRQ RQZKLFKWKHFRPSDQ\SULGHVLWVHOI ´$WVXSHUPDUNHWV\RXGRQ·WUHDOO\ NQRZZKDW\RXDUHEX\LQJDQGKDYH OLWWOHXQGHUVWDQGLQJRIZKHUHDSURGXFW FRPHVIURP$VVPDOOVFDOHJURZHUV ZHDUHWU\LQJWRRSHUDWHZLWKLQWHJULW\ LQDQDJJUHVVLYHPDUNHW´*RQ]DOR DGGV7KHLGHDLVWKDWDVWKHFXVWRPHU \RXNQRZH[DFWO\ZKDW\RXDUHHDWLQJ ZKHUHLWFRPHVIURPZKDWSURFHVVHV DUHXVHGLQSURGXFWLRQDQGLI\RX UHDOO\ZDQWWRNQRZZKRSLFNHGWKH IUXLWDQGZKHQ)RU*RQ]DORLWLVWKLV SHUVRQDOWRXFKDQGWKHDELOLW\WRDGMXVW WRWKHQHHGVRIWKHFXVWRPHUWKDWJLYH WKHVPDOOVFDOHJURZHUDQDGYDQWDJH ´:HDGDSWWRFOLHQWQHHGV:HXQGHU VWDQGWKHP:HOLVWHQWRWKHPDQGZLOO QRWUHVWXQWLOZHKDYHIRXQGWKHEHVW VROXWLRQIRUWKHPµ 2QFHWKLVVROXWLRQLVIRXQGWKH1DUDQ MDVGHO&DUPHQWHDPNLFNLQWRDFWLRQ ,Q/D0DVtDHO&DUPHQWKHUHLVQR VXFKWKLQJDVVWRFN:KHQDSXUFKDVH LVPDGHWKHQHFHVVDU\IUXLWLVSLFNHG ER[HGDQGGLVSDWFKHGLQDGD\²DQG W\SLFDOO\UHFHLYHGIRXUGD\VODWHU ´7KLVLVWUXO\SHUVRQDOLVHGIUHVKIUXLWµ *RQ]DOREHDPV2QQDUDQMDVGHOFDU PHQFRPFXVWRPHUVFDQEX\RQOLQH RULIWKH\ZDQWWRGLVFXVVDPRUH SHUVRQDOLVHGDUUDQJHPHQWWKH\FDQ HPDLORUFDOOZLWKWKHLUUHTXLUHPHQWV ´:KDWJUHDWHUJLIWWRVRPHRQHWKDQ WKDWRIJRRGKHDOWKLQWKHIRUPRIDQ RUDQJH"µ*RQ]DORVD\VZLWKDWZLQNOH LQKLVH\H7KLVUHVSRQVHLVW\SLFDORI WKHPDQ,ÀUVWPHWLQZKHQ,ZDV OLYLQJLQ0DGULG+HZDVEULPPLQJ ZLWKHQHUJ\DQGGLVSOD\HGDFOHDU RUDQJHEDVHG]HVWIRUOLIH)RU1DUDQ MDVGHO&DUPHQWREHVXFFHVVIXOWKHVH WHQDFLRXVWZHQW\VRPHWKLQJVZLOOQHHG DOOWKHLUGULYHH[SHUWLVHDQGSHUVHYHU DQFH,IWKHDSSHWLWHSDVVLRQDQGSRLVH RI*RQ]DORLVDQ\WKLQJWRJRE\WKH\ FRXOGMXVWPDNHLW 7LPRWK\:DONHUVSHQWWKUHH\HDUV LQ6SDLQGXULQJZKLFKKHWDXJKW (QJOLVKKHOGDVHDVRQWLFNHWZLWK $WOpWLFRGH0DGULGZDONHGWKH &DPLQRGH6DQWLDJRGH2YLHGRSRU HO&DPLQRGHOD&RVWDDQGSOD\HG KRFNH\LQWKH0DGULGKRFNH\ OHDJXH+HFXUUHQWO\OLYHVLQ.LQJ VWRQXSRQ7KDPHVDQGZRUNVDVD /HDUQLQJ6XSSRUW$VVLVWDQWDWDQ DFDGHP\LQ)HOWKDP _/$5(9,67$_635,1*,668(_ _/$5(9,67$_635,1*,668(_ =61>-:;1<A41.2[IRUG·V6SDQLVKWRXFK /D7DVFD <aTMZ.Q[PMZ <MZM[I*ITTM[\MZW[ 7KLV\HDU/D7DVFDPDUNVLWVWZHQWLHWKDQQL YHUVDU\RIEULQJLQJDXWKHQWLF6SDQLVKFXLVLQH WRFLWLHVWKURXJKRXWWKH8./D5HYLVWDWDONHG ZLWK0DUN5RELQV*HQHUDO0DQDJHURI/D 7DVFDLQ2[IRUGDERXWKRZKLVUHVWDXUDQWKDV DGDSWHG6SDQLVKFXOLQDU\WUDGLWLRQVIRUWKH %ULWLVKSDODWH LVKVXSSOLHUV7KHWHDPDQG FXVWRPHUVDUHSURXGWRVD\ WKDWWKLVLVWKHEHVW/D7DVFD PHQXWRGDWH :K\GLG\RXUFRPSDQ\FKRRVH¶/D 7DVFD·DVLWVQDPH" 7KHFXUUHQWPDQDJHPHQWWHDPZDVQ·W LQSODFHZKHQ/D7DVFDODXQFKHG \HDUVDJREXWLWPHDQV¶WKHEDU·DQG IRUWKHFXUUHQWWHDPLW·VDOODERXWFUH DWLQJDIXQLQIRUPDODQGZHOFRPLQJ HQYLURQPHQWWKDWSHRSOHFDQHQMR\IRU GULQNVRUDPHDO +RZKDV/D7DVFD·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·VJXHVWVLQWKH8." *UHDWTXHVWLRQDQGHYHU\RQHKDVWKHLU IDYRXULWHV<RXKDYHVRPHJUHDWVWDSOH GLVKHVVXFKDVSDWDWDVEUDYDVWRUWLOOD DQGSDHOODZKLFKDUHSRSXODUDPRQJ GLQHUVEXW/D7DVFDLVFRPPLWWHG WREULQJLQJWUDGLWLRQDODQGDXWKHQWLF 6SDQLVKGLVKHVWRWKH8.PDUNHW $QWRQLR%HQQHWWRDQGWKHPDQDJH PHQWWHDPRIWHQYLVLW6SDLQWRVRXUFH QHZVXSSOLHUVOHDUQQHZFRRNLQJ WHFKQLTXHVDQGWU\QHZGLVKHVDOO ZLWKWKHDLPRIEULQJLQJWKLVEDFNWR /D7DVFD·VGLQHU +RZGRHV/D7DVFDDVDFKDLQPDLQ WDLQWKHIHHOLQJRIORFDODXWKHQWLFLW\LQ LWVUHVWDXUDQWV" $OOUHVWDXUDQWVKDYHWKH¶/D7DVFD· VLJQDERYHWKHGRRUEXWHDFKUHVWDX UDQWKDVLWVRZQLQGLYLGXDOVW\OHDQG 863>XQLTXHVHOOLQJSRLQW@:HHP SOR\JHQHUDOPDQDJHUVZLWKSHUVRQDO LW\DQGÁDLUDQGDKLJKSHUFHQWDJHRI RXUWHDPDUH6SDQLVK2XUGLVKHVDUH SUHSDUHGDQGVHUYHGDV\RXZRXOGH[ SHFWWKHGLVKHVWREHVHUYHGLQ6SDLQ 'RHV\RXUPHQXUHÁHFWRQH6SDQLVK UHJLRQPRUHWKDQRWKHUV"2UGR\RX VWULYHWRUHSUHVHQW+LVSDQLFFXLVLQH PRUHJHQHUDOO\" 7KHODWWHU,I\RXYLHZRXUFXUUHQW PHQX\RXZLOOVHHDOOWKHGLIIHUHQW UHJLRQVRXUGLVKHVDUHIURP>*DOLFLD /HyQ$QGDOXVLD&DVWLOOD@ 'RHV/D7DVFDIROORZFXUUHQWWUHQGV LQ6SDQLVKFXLVLQHRULVWKHHPSKDVLV FRQVLVWHQWO\RQWUDGLWLRQ" %RWK:HDLPWRVWULNHDEDODQFH EHWZHHQWKHWZRDQGPDNLQJERWKDF FHVVLEOHWRWKH8.PDUNHW 7\OHU)LVKHULV/HFWXUHULQ+LVSDQLF 6WXGLHVDW5R\DO+ROORZD\8QLYHUVLW\ RI/RQGRQDQG/HFWXUHULQ6SDQLVKLQ WKH)DFXOW\RI0HGLHYDODQG0RGHUQ /DQJXDJHV8QLYHUVLW\RI2[IRUG7HUHVD %DOOHVWHURVUHFHLYHGKHUOLFHQFLDWXUD LQ+LVWRU\DWWKH8QLYHUVLGDG&RPSX OXWHQVH6KHOLYHVDQGZRUNVLQ2[IRUG _/$5(9,67$_635,1*,668(_ ,WUQVQK*MOO ,7k)6),1):A $'2f$1$'81(6 2IV]IZaVL 0DJJLHDQG,DUHEDVHGRQWKHIULQJHV RIWKH&RWR'RxDQDQDWLRQDOSDUNLQ 0DWDODVFDxDV7KLVVWRZQVKLS LVHHULO\TXLHWDVPRVWRIWKHFKDOHWV DQGEXQJDORZVKDYHEHHQFORVHGXS VLQFH6HSWHPEHU0RUQLQJZDONWRWKH VHDIURQWLQEULJKWVXQVKLQHORRN LQJGRZQRQWRWKHPDJQLÀFHQWEHDFK WKDWVWUHWFKHVRYHUNLORPHWUHVHDVW DORQJWKHGXQHVRIWKH&RWR'RxDQD WRWKH¶GHVHPERFDGXUD·RIWKH*XDG DOTXLYLU+HDGLQJZHVWZDUGZHSDVV VHYHUDOERDUGHGXS¶FKLULQJXLWRV·RQH WKDWFKHGDQRWKHUFDOOHGWKH7LWDQLF $W%DU)DXVWRZHFKRRVH¶FKRFRV·DQG OLJKWO\JULOOHGSDOHSUDZQVVSULQNOHG ZLWKURFNVDOW:LWKQRRQDSSURDFK LQJ,DVNIRUD¶PDQ]DQLOODIUtD·D ZRQGURXVÀQRVW\OHDSpULWLIIURP QHDUE\6DQO~FDUGH%DUUDPHGD¶)UtD· LVWKHSDVVZRUGWKDWVLGHVWHSVDQ\FRQ IXVLRQZLWK¶PDQ]DQLOOD·DFDPRPLOH LQIXVLRQXQVXLWDEOHIRUDFFRPSDQ\LQJ SUDZQV 2IV]IZa\P 8SDWGDZQDQGZLWKDGR]HQRWKHUV LQWRDQH[SDQGHGUDLVHGODQGURYHU W\SHYHKLFOHWRH[SORUHWKH&RWR 'RxDQD$SDUWIURPDFRXSOHRI ÀVKHUPHQZH·UHWKHRQO\KXPDQVLQ WKLVYDVWH[SDQVHRIGXQHVIRUHVWVDQG PDUVK\ODJRRQV$WKLJKWLGHEXPS LQJDORQJWKHGXQHVIHHOVOLNHEHLQJ RQKRUVHEDFNDVWKHE\VZHHSV FRORQLHVRIVHDJXOOVIURPRXUSDWKXS LQWRDFORXGOHVVVN\ 7XUQLQJLQODQGZHSDVVKXQGUHGV RIVWXQWHGSLQHVWKDWZLOOEHVZDO ORZHGXSE\WKHGXQHVRYHUWKHQH[W \HDUVDVZHOODVDSDLURILPSHULDO HDJOHVVWDQGLQJJXDUGDWRSWKHWDOOHVW WUHH:LOGERDUDQGVWDJVJUD]HWRJHWK HUFORVHWRRXUURXWHNHHSLQJWKHGRHV DQGWKHLU\RXQJDWDVDIHGLVWDQFH )XUWKHULQODQGWKH¶PDULVPDV·DUH KRPHWRGXFNVDQGJHHVHWKDWKDYH GHYHORSHGDZD\RIGLJHVWLQJWKHORFDO UHHGV+RZHYHUDODFNRIUDLQRYHU &KULVWPDVPHDQVWKDWPRVWRIWKH VKULPSHDWLQJÁDPLQJRHVKDYHVWD\HG RQLQ0iODJDSURYLQFH$WWKHSDUN·V VRXWKHDVWHUQWLSORRNLQJDFURVVWKH GHOWDWR6DQO~FDUZHH[SORUHDQDEDQ GRQHGVHWWOHPHQWFRQVLVWLQJRIKDOI DGR]HQWKDWFKHG+REELWVW\OHKXWV ZLWKPRVVHVDQGZLOGÁRZHUVSXVKLQJ XSWKURXJKWKHWKDWFK8QWLOWKH&RWR EHFDPHDQDWLRQDOSDUNLQWKHVH UHPRWHSHRSOHOLYHGÀVKHGIRUDJHG DQGEXUQWFKDUFRDOLQWKLVDUFDGLDQ FOHDULQJZLWKWKHLUERDWVKLWFKHGWRD ULFNHW\ZRRGHQMHWW\ 2IV]IZa\P *ORULRXVVXQVKLQHDQGFROGEHHUV DURXQGQRRQRXWVLGH7DEHUQD4XLTXH LQ0DWDODVFDxDVZLWKKRUVHPHDWRQ WKHLUWDSDVPHQXFRQÀUPDWLRQWKDW ZHDUHLQGHHGLQKRUVHFRXQWU\7KH 5H\HVSURFHVVLRQÀQDOO\DUULYHVZLWK RXWULGHUVRQKRUVHEDFNDQGWUDFWRUV SXOOLQJWRSKHDY\ÁRDWV6ZHHWVDQG SODVWLFIRRWEDOOVDUHWRVVHGLQWRWKH FURZG:HOXQFKRQWKHVHDIURQWDW 3HGUR-RVpDSRSXODUORFDOUHVWDXUDQW RSWLQJIRUDVHOHFWLRQRI$QGDOX]IULHG ÀVK7KH¶SXQWLOOLWDV·DUHHVSHFLDOO\ JRRGUHPLQGLQJPHRIWKRVH,KDGD IHZ\HDUVEDFNDWWKH¶3HxD%pWLFD·LQ &KLSLRQD'LVDSSRLQWLQJ¶DMHUH]DGR· ZKLWHZLQHIURPWKH&RQGDGRGH +XHOYD,FRXOGKDYHSOD\HGVDIHDQG RUGHUHGD%DUEDGLOOR 2IV]IZa\P $ORFDOEXVWDNHVXVLQODQGWR(O 5RFtRIDPRXVIRULWVVKULQHDQGFRO RXUIXODQQXDO¶5RPHUtD·:HJHWRXU ÀUVWVLJKWRIWKHZKLWHZDVKHGFKXUFK DQGVLQJOHVWRUH\EXLOGLQJVRQWKHIDU VLGHRIDODNHZKLFKFDXVHVWKHYLO ODJHWRVKLPPHUOLNHDPLUDJHLQWKH PRUQLQJOLJKW$VZHH[SORUHLWVVLOHQW VTXDUHVDQGVDQG\VWUHHWVHYHU\EXLOG LQJZLWKLWVRZQKLWFKLQJSRVWLW·V FOHDUWKDWWKLVUHPDLQVKRUVHFRXQWU\ ZLWKHFKRHVRIWKHZLOGZHVW1H[WRQ WRWKHFRXQW\WRZQRI$OPRQWHZKHUH HYHU\VHYHQ\HDUVWKH9LUJLQRI(O 5RFtRUHVLGHVIRUDIHZPRQWKV6XUH HQRXJKWKHUHVKHVWDQGVLQIURQWRIWKH DOWDURIWKHORFDOFKXUFKVZDWKHGLQ HPEURLGHUHGJROGUREHV+HUIDFHKDV DFHUDPLFVKHHQUHPLQLVFHQWRI9HQH WLDQFDUQLYDOPDVNVDVVKHUHWXUQVWKH WRXULVWV·VWDUHV/XQFKDWWKHFDVLQR DQROGIDVKLRQHGJHQWOHPHQ·VFOXELQ DVLGHVWUHHWEHKLQGWKHFKXUFK7KH VSLQDFKZLWKJDUEDQ]RVDQGWK\PHLV VXSHUEDVDUHWKHRULJLQDO(GZDUGLDQ VKXWWHUVVLGHERDUGVDQGFKDQGHOLHUVLQ WKHVSDFLRXVGLQLQJURRP:HUHWXUQ WRWKHFRDVWLQDEXVIXOORIIHPDOH 8NUDLQLDQVWUDZEHUU\SLFNHUV 2IV]IZa \P 'D\H[FXUVLRQWRWKH$OJDUYH1HDU 7DYLUDZHVHH\RXQJOHDYHVVSURXW LQJRQVRPHRIWKHPRUHVKHOWHUHG ÀJWUHHV 2IV]IZa!\P 7R+XHOYDP\ÀUVWWLPHVLQFH$XJXVW 0DQ\FKDQJHVLQFOXGLQJD QHZIRRWEDOOVWDGLXPE\WKHVHDDQG DEULGJHWRWKHEHDFKHVRI3XQWD 8PEUtD$VD\HDUROG,XVHGWR WDNHWKHERDWWKHUHDQGKDYHOXQFKLQ DÀVKHUPDQ·VZRRGHQFDELQVLWWLQJ ZLWKDIDPLO\GRZQIURP%LOEDR8JO\ DSDUWPHQWEORFNVKDYHGRQHDZD\ZLWK DOOWKDW+RZHYHUWKHUHDUHVWLOOJRRG WKLQJVWREHVHHQLQ+XHOYDVXFKDV WKH¶3HQVLRQLVWD·PDQVLRQWKH FKDSHORIWKH9LUJLQRIWKH5LEERQ KLJKXSDERYHWKHFLW\DQGWKH¶%DUULR 2EUHUR·DNLQGRIJDWHGFRPPXQLW\ EXLOWIRU%ULWLVK5LR7LQWRHQJLQHHUV DQGZRUNHUVEHWZHHQDQG 2IV]IZa\P 5HWXUQÁLJKW6HYLOOHWR%DUFHORQD $UULYHKRPHUHIUHVKHGDQGUHDG\WR HQGXUH¶ODFXHVWDGHHQHUR·« 7RS'RPLQLF%HJJ DQGH[SHGLWLRRQWUXFN %RWWRP5LJKW/D 9LUJHQGHO5RFLR /HIW0DJJLHDWWKH EHDFKQHDU(O5RFLR 'RPLQLF%HJJLVDIRUPHULQWHUQD WLRQDOUXJE\SOD\HUZKROLYHVDQG WHDFKHV(QJOLVKLQ6LWJHV _/$5(9,67$_635,1*,668(_ 16+76>-:;)<176 /LWHUDU\3XUVXLWV %ULWLVK6SLHV6SDLQDQG ::)DFWPHHWV)LFWLRQ -%::6SDLQ0RURFFRHV SLRQDJHWKHVHDUHVXEMHFWV,ZURWH DERXWLQ3DSD6S\LQRUGHUWRÀQGRXW PRUHDERXWP\IDWKHU%XWZKDWWRRN \RXWKHUH" 0',ZDVLQWHUHVWHGLQLWLDOO\LQ ZULWLQJDERXWWKH6SDQLVKDGPLQLVWUD WLRQLQ0RURFFRHO3URWHFWRUDGRGH (VSDxDHQ0DUUXHFRVEHFDXVHLWZDVD SHULRGRIKLVWRU\WKDWZDVYHU\OLQNHG WRP\RZQIDPLO\7KHQ,VWDUWHG GRLQJVRPHUHVHDUFKDQG,IRXQGRXW VRPHWKLQJDERXW*HQHUDO-XDQ/XLV %HLJEHGHU·VOLIH+HZDVRULJLQDOO\ WKH6SDQLVK+LJK&RPPLVVLRQHULQ 0RURFFRDQGODWHUZDV)UDQFR·VÀUVW PLQLVWHURIIRUHLJQDIIDLUV5HVHDUFK LQJKLP,VWXPEOHGDOPRVWE\DFFLGHQW RQRQWKHZKROH¶VS\·SORWRI:: 6SDLQ,WZDVIDVFLQDWLQJ -%2QHRIWKHJUHDWWKLQJVDERXW\RXU ERRN7KH6HDPVWUHVVLVLWVVHQVHRI SODFHRIFKDUDFWHURIKLVWRULFDOPR PHQWDQG\RXDUHYHU\JRRGZULWLQJ DERXWVSLHV1RHDV\WKLQJWRGR 6SLHVE\GHÀQLWLRQGRWKLQJVZHDUH QRWPHDQWWRNQRZDERXW'LG\RX KDYHDQDGYLVHU" 0'1R,PDGHLWXS/DXJKV:HOO ,WU\DQGXVHKLVWRULFDOIDFWVDERXWWKH %ULWLVKVHFUHWVHUYLFHVDQGFRQQHFW WKHPZLWKP\LPDJLQHGFKDUDFWHUV WKXVPHUJLQJÀFWLRQDQGUHDOLW\ -%%XWWKHUHDUHUHDOFKDUDFWHUVWKDW MXPSRXWRIWKHSDJHOLNH%HLJEHGHU KLPVHOIDQG\HV7RP%XUQV,WKLQN ,NQRZWKDWJX\<RXVSLQDZRQGHU IXOZHERILPDJLQDWLRQDURXQGWKHP 0',GLGP\UHVHDUFKZLWKRXWNQRZ _/$5(9,67$_635,1*,668(_ LQJZKHUHLWZDVJRLQJWRWDNHPH, WULHGWREHDFFXUDWHEXW,GLGQ·WZDQWWR IRUJHWWKDWWKDW,ZDVZULWLQJDQRYHO +LVWRU\ZDVVHFRQGDU\,ZDQWHG WRJHWP\UHDGHUVLQYROYHGLQP\ FKDUDFWHU·VOLIHDQGDGYHQWXUHVDQGKHU JURZLQJXS -%:HOOPD\,VD\WKDWRQHRI\RXU KXJHVWUHQJWKVDVDZULWHULVWKDW\RX QHYHUDOORZWKHGHWDLOWRGUDJ\RX GRZQ7KH6HDPVWUHVVLVQHDUO\ SDJHVORQJEXW\RXFDQ·WSXWLWGRZQ ,WVZHHSV\RXDORQJYHU\HDVLO\$QG ZKHQ\RXKDYHDGHWDLOLWLVEDQJRQ 7DNH\RXULQWURGXFWLRQRI&DSWDLQ +LOOJDUWKDQRWKHUUHDOOLIH(QJOLVKVS\ :KHQZHÀUVWPHHWKLPKHLVVPRNLQJ D&UDYHQ$FLJDUHWWHDQGGUHVVHGLQDQ $OSDFDVXLW'LG\RXNQRZWKDWP\ IDWKHUDQRWKHUVS\VPRNHG&UDYHQ $WRRDQGWKDW+LOOJDUWKOLNHG$OSDFD ZRROEHFDXVHRIKLVSUHYLRXVDGYHQ WXUHVLQ6RXWK$PHULFD" 0'5HDOO\"0\JUDQGIDWKHUXVHGWR VPRNH&UDYHQ$SHRSOHGLGLQ0R URFFRDWWKDWWLPH -%/HW·VJHWEDFNWRFKDUDFWHULVD WLRQ7KHVWURQJHVWFKDUDFWHUVLQ\RXU QRYHODUHDOOZRPHQ%\FRPSDULVRQ WKHPHQDUHHLWKHUFKXORVRUW\SLFDO 6SDQLVKPDFKRVRUZHDN(QJOLVKPHQ +RZFRQVFLRXVDUH\RXWKDWWKLVLVD ERRNZULWWHQIRUZRPHQ"&HUWDLQO\LW LVZRPHQZKRKDYHERXJKWWKLVERRN LQGURYHV 0',GHOLEHUDWHO\ZDQWHGWRPDNH ZRPHQVWURQJSRZHUIXOFKDUDFWHUV, QHYHULQWHQGHGWRPDNHPHQLQIHULRU 3LFWXUH0DULD'XHxDVDQG-LPP\%XUQVDWWKH&HUYDQWHV,QVWLWXWH /D5HYLVWD·V(GLWRU-LPP\%XUQVZURWHDERRNDERXWKLV ODWHIDWKHU7RP·VUHDOOLIHVS\LQJDFWLYLWLHVLQ6SDLQDQG 0RURFFRLQ:RUOG:DU7ZR%HVWVHOOLQJ6SDQLVKDXWKRU 0DULD'XHxDVZURWHDQRYHODERXWWKHVDPHSHULRGLQ ZKLFK7RP%XUQVDSSHDUVDPRQJWKHFKDUDFWHUV%XUQV DQG'XHxDVPHWLQFRQYHUVDWLRQLQWKH&HUYDQWHV,Q VWLWXWHWRPDUNWKHSXEOLFDWLRQLQWKH8.RI0DULD·V7KH 6HDPVWUHVV(O7LHPSRHQWUH&RVWXUDV7KLVLVDQH[ WUDFWIURPWKHLUFRQYHUVDWLRQEHIRUHDSDFNHGDXGLHQFH ¶XQOOHQRKDVWDODEDQGHUD·JUDFHIXOO\KRVWHGE\WKH ,QVWLWXWH'LUHFWRU-XOLR&UHVSR0DF/HQQDQ %XWP\PDLQFKDUDFWHUWKHVHDP VWUHVVVWDUWHGWRJURZDVDFKDUDFWHU GHPDQGLQJPRUHIURPPHEHFRPLQJ PRUHDGYHQWXURXVWDNLQJRQDPRUH DFWLYHUROH7KH(QJOLVKPDQLVQLFH KHLVQRWZHDN -%<RXUERRNPHQWLRQVWKH6SDQLVK &LYLO:DUEXWLQTXLWHDGLVWDQWZD\ ZK\GLG\RXQRWPDNHLWWKHVXEMHFWRI \RXUQRYHO" 0':HKDYHVRPDQ\6SDQLVKZULWHUV ZKRKDYHGRQHWKLV,ZDQWHGWRZULWH VRPHWKLQJGLIIHUHQW -%,QIDFWRQHRIWKHPRVWSRZHU IXOSDVVDJHVLQWKHERRNLVZKHQWKH ¶VHDPVWUHVV·\RXUKHURLQHJRHVEDFN WR0DGULGDIWHUWKH&LYLO:DUDQG PHHWVKHUÀUVWQRYLR+LVPRQRORJXH LVDOPRVWOLNHDFDWKDUVLVUHPHPEHU LQJKLVIULHQGVZKRKDYHEHHQVHQWWR SULVRQRUZKRKDYHEHHQNLOOHG,QMXVW DFRXSOHRISDJHV\RXVXPPDULVHWKH WUDJHG\RIWKH&LYLO:DU,WKLQNLWD UHDOWULEXWHWR\RXUVNLOOVDVDQRYHOLVW &KDSHDXWR\RX 0'7KDQN\RX -%<RX·YHJRQHIURPEHLQJDUHOD WLYHO\XQNQRZQWHDFKHULQ0XUFLDQRW WKHPRVWIDPRXVWRZQLQ6SDLQWR EHLQJRQHRI6SDLQ·VPRVWIDPRXV H[SRUWVDQLQWHUQDWLRQDOEHVWVHOOLQJ DXWKRU+RZKDVWKLVDIIHFWHG\RXDVD KXPDQEHLQJ" 0',KDYHWULHGWRVWD\WKHVDPH SHUVRQLQDOOVHQVHV,KDYHFKDQJHG P\SURIHVVLRQEXW,KDYHPDGHD FRQVFLRXVHIIRUWQRWWRXSURRWP\VHOI ,KDYHWHHQDJHNLGVLQWKHVDPHKRXVH ,UHWXUQWRDIWHUWUDYHOOLQJDQGWKHQ RIFRXUVH,DPYHU\JUDWHIXOWRP\ SXEOLVKHUVWRWKHERRNVHOOHUVWRP\ UHDGHUV 7KHHQFRXQWHUEHWZHHQWKHWZR DXWKRUVODVW'HFHPEHUZDVRUJDQ L]HGE\3HQJXLQ%RRNV8.,QVWLWXWR &HUYDQWHV/RQGUHV%RRNV6SDLQ DQG7KH2IÀFHIRU&XOWXUDODQG 6FLHQWLÀF$IIDLUVRIWKH6SDQLVK (PEDVV\ 41<-:):A:->1-? 1HZWUDQVODWLRQRI6NHWFKHVRI 6SDLQ,PSUHVLRQHV\3DLVDMHV E\)HGHULFR*DUFtD/RUFD ,FRQIHVVWRKDYLQJDVRIWVSRWIRU /RUFD·VÀUVWERRN,PSUHVLRQHV\ 3DLVDMHVSXEOLVKHGWKDQNVWR WKHYLVLRQDQGJHQHURVLW\RIKLVIDWKHU ZKHQKHZDVMXVWWZHQW\:KHQ, EHJDQP\UHVHDUFKRQWKHSRHWLQ WKHFRPSOHWHWH[WRIWKHERRN ZDVQRWLQFOXGHGLQWKHH[SHQVLYH VLQJOHYROXPHHGLWLRQRIKLV2EUDV FRPSOHWDV(GLWRULDO$JXLODUWKHRQO\ RQHSHUPLWWHGE\WKH)UDQFRUpJLPH 7KDQNVWRWKHNLQGQHVVRIWKH)UHQFK +LVSDQLVW&ODXGH&RXIIRQKRZHYHUD SKRWRFRS\RIWKHLQFUHGLEO\UDUHHGLWLR SULQFHSVZDVVRRQLQP\KDQGV,W SURYHGZKDW,KDGDOUHDG\VXVSHFWHG WKDWWKHUHDVRQIRUWKHXQGHFODUHG PXWLODWLRQRIWKHRULJLQDOZDVWKDW WKH\RXQJ/RUFD·VYLROHQWKRVWLOLW\ WRZDUGVWKH&DWKROLF&KXUFKPXVWQRW EHJHQHUDOO\NQRZQDQ\PRUHWKDQ WKHWUXHFLUFXPVWDQFHVRIKLVDVVDVVL QDWLRQLQDWWKHKDQGVRIIDVFLVWV LQKLVQDWLYH*UDQDGD 7RUHQGHULQWRUHDGDEOH(QJOLVK/RU FD·VHDUO\SURVHGHHSO\LQGHEWWRWKH ;<)/- 6-?; 7KH8QLYHUVLW\RI/RQGRQ·V %ORRPVEXU\7KHDWUHLQDVVRFLDWLRQ ZLWK8&/6SDQLVKDQG/DWLQ$PHULFDQ 6WXGLHVZDVWKHVHWWLQJDWWKHHQGRI -DQXDU\IRU/RUFD'UHDPVDFRORXU IXOSURGXFWLRQE\WKH%DUDND7KHDWUH &RPSDQ\EHVWGHVFULEHGDVDSRHWLF MRXUQH\WKURXJKWKHOLIHDQGZRUNRI /RUFD 7KH¶SOD\·LQFOXGHVDYDULHW\RI H[WUDFWVIURPKLVIDPRXV$QGDOXVLDQ PDVWHUSLHFHVWRWKHOHVVZHOONQRZQ VXUUHDOLVWH[SHULPHQWV7KHDFWRUV UHYLVLWDQHFGRWHVIURPKLVSOD\IXO FKLOGKRRGFRQYHUVDWLRQVZLWKKLV IULHQG6DOYDGRU'DOLGUDPDWLFVFHQHV RIWKH1HZ<RUN:DOO6WUHHWFUDVKDQG PHPRULHVIURP%XHQRV$LUHVDQG/D +DEDQD YRFDEXODU\DQGWLFVRIPRGHUQLVPR LVDGDXQWLQJWDVNDQGLWVHHPVWRPH WKDW3HWHU%XVKKDVULVHQVSOHQGLGO\WR WKHDOPRVWLPSRVVLEOHFKDOOHQJH7KH UHVXOWLVWKDW/RUFD·V$QJOR6D[RQ QRQ6SDQLVKUHDGLQJDGPLUHUVQRZ KDYHWKHRSSRUWXQLW\WRDFFRPSDQ\WKH DGROHVFHQWSRHWDQGSOD\ZULJKWSRLVHG WRWDNHWKHZRUOGE\VWRUPRQKLVWULS WKURXJK2OG6SDLQZLWKDJURXSRIIHO ORZXQLYHUVLW\VWXGHQWVDQGWRVDYRXU DWH[WZLWKVRPH$QGDOXVLDQEUXVK VWURNHVIRUJRRGPHDVXUHWKDWKHUDOGV LQPDQ\ZD\VWKHPRUHPDWXUHZRUN VRRQWRFRPHRQLWVKHHOV 7KHUHDGHUZLOOQRWLFHDWRQFHWRZKDW H[WHQW/RUFD·VPXVLFDOYRFDWLRQDQG WUDLQLQJVKDSHWKHLPDJHU\RIWKHERRN DIHZWRRPDQ\FKURPDWLF´PRGXOD WLRQVµIRUH[DPSOH$OVRKLVH\H IRUWKHVPDOOWHOOLQJGHWDLOZKHWKHU RIDODQGVFDSHRUDPRQXPHQWDQG KLVGHHSHPSDWK\ZLWKDVXIIHULQJ KXPDQLW\HPERGLHGDERYHDOOLQWKH FORLVWHUHGPRQNVRI&DVWLOHGHOXGHG LQKLVYLHZRIWKLQJVLQWREHOLHYLQJ 7KHSURGXFWLRQSUHVHQWVDZRUOGRI GUHDPVDQGVHQVDWLRQVDWDVWHRI /RUFD·VWUHPHQGRXVVHQVHRIKXPRXU DFROODJHRI´)HGHULFRVµUHSUHVHQWLQJ DPDQIXOORISDVVLRQLQORYHZLWKOLIH DQGIUHHGRP,WZDVWKLVGHVLUHIRU IUHHGRPWKDWZRXOGODWHUSUHYHQWKLP IURPVXVSHFWLQJWKHWUDJLFHQGZKLFK DZDLWHGKLPLQ*UDQDGDGXULQJWKH 6SDQLVK&LYLO:DU :ULWWHQDQGGLUHFWHGE\0DUtD&DXGH YLOODZLWKH[WUDFWVIURP/RUFD·VZRUN WKLVZDVDZHOFRPHUHWXUQWRWKH8. E\%DUDNDDIWHULWVVXFFHVVIXOWRXULQ 6SDLQ7KHVKRZZDVQRPLQDWHGIRU WKUHHDZDUGVLQWKH3UHPLRV0D[GHOD $UWHV(VFpQLFDV&RPPLVVLRQHG E\WKH7HDWUR(VSDxROLWZDVVHOHFWHG WRSDUWLFLSDWHLQWKH&HUWDPHQGH'L UHFWRUDVGH(VFHQDVLQ /RUFD·VELRJUDSKHU,DQ*LEVRQ GHVFULEHG/RUFD'UHDPVDVWKHPRVW PRYLQJSOD\DERXWWKHSRHWIURP *UDQDGDKHKDGVHHQLQ\HDUV´6HHQ" 1RRQHGRHVQRWVHHWKLVSOD\LWLV 1IV/QJ[WV WKDWE\VKXWWLQJWKHPVHOYHVXSLQD FRQYHQWWKH\FDQQHFHVVDULO\HVFDSH IURPWKHLPSHULRXVFODLPVRIWKHÁHVK /RUFDZRXOGKDYHDJUHHGZLWK9RO WDLUH&KDVVH]OHQDWXUHOoDUHYLHQWDX JDORS3HUKDSVWKHPRVWPHPRUDEOH LQVWDQFHLQWKLVFRQQHFWLRQLVWKHVFHQH WKDWWDNHVSODFHLQWKHRUJDQORIWDW 6LORVZKHQWKHSRHWPXVLFLDQGDUHV WRFKDOOHQJHWKHPRQDVWHU\·VVROH UHFRXUVHWR*UHJRULDQFKDQWDQGHP EDUNVRQWKHDOOHJUHWWRRI%HHWKRYHQ·V 6HYHQWK6\PSKRQ\«ZLWKDQXQIRUH VHHQDQGWRXFKLQJRXWFRPH 7KHERRNLVHQKDQFHGE\-XOLDQ%HOO·V GHOLJKWIXOGUDZLQJVRIVRPHRIWKH FRUQHUVKLJKOLJKWHGE\WKH\RXWKIXO DXWKRU3XEOLVKHUVWUDQVODWRUDQGDUW LVWKDYHGRQHDJUHDWVHUYLFHWR/RUFD ORYHUV£(QKRUDEXHQD 7KLVUHYLHZLVUHSURGXFHGFRXUWHV\ RI%RRNV6SDLQ6NHWFKHVRI6SDLQ )HGHULFR*DUFLD/RUFD7UDQVODWHG E\3HWHU%XVK,OOXVWUDWLRQVE\-X OLDQ%HOO3XEOLVKHGE\6HULISS IRUVSHFLDORIIHUWR$QJOR6SDQLVK 6RFLHW\PHPEHUVDSSO\RQOLQH %RRNV6SDLQFRP DERYH9LVXDO,PDJLQDWLRQ/RUFD'UHDPV VRIDQWDVWLFWKHZRUNRIDOOWKHDFWRUV LVVRH[WUDRUGLQDU\WKHGLUHFWLQJVR VWXSHQGRXVWKDWZHOLYHWKHSOD\µ FRPPHQWHG*LEVRQ ,QDQRWKHUUDYHUHYLHZ%HQHGLFW 1LJKWLQJDOHRI7KH7LPHVSUDLVHGWKH ´PL[RIH[WUDYDJDQWODQJXDJHDQG YLVXDOLPDJLQDWLRQµDVSHUIRUPHGE\ %DUDND·VÀYHSHUVRQFDVW ,DQ*LEVRQLVDUHFRJQLVHGH[SHUW RQWKHOLIHDQGZRUNVRI)HGHULFR *DUFLD/RUFDDQGWKHDXWKRURI)H GHULFR*DUFLD/RUFD$/LIHZKLFKLV DYDLODEOHIURP%RRNV6SDLQ _/$5(9,67$_635,1*,668(_ -6,67<-; :LQHV$9ROFDQLF0LUDFOH 0IZWTL0MKSTM /HIWODSDV ZLWKDJODVVRI /LVWiQ%ODQFR &HQWUH0DO YDVtDYLQHVLQ YROFDQLFDVK LQ/D*HULD /DQ]DURWH 6SDLQ·V&DQDU\,VODQGVDUHRQHRI WKHZRUOG·VULFKHVWWUHDVXUHWURYHV IRUZLQHORYHUVZLWKJUDSHYDULHWLHV XQOLNHWKRVHIRXQGDQ\ZKHUHHOVH JURZLQJQDWXUDOO\RQWKHLURZQXQ JUDIWHGURRWV/D5HYLVWD·VZLQHH[SHUW LQYHVWLJDWHV ,QWKHSDVW&DQDU\ZLQHZDVIDPRXV HQRXJKWRKDYHEHHQPHQWLRQHGE\ :LOOLDP6KDNHVSHDUH² WRGD\DWOHDVWJUDSHYDULHWLHVPRVW RIWKHPQDWLYHUHJDOHWKHQRVHDQG SDODWH$OOVHYHQPDMRULVODQGVLQWKH DUFKLSHODJRPDNHZLQHEXWWKDQNVWR JURXQGEUHDNLQJZRUNE\SLRQHHULQJ ZLQHPDNHUVDQGYLWLFXOWXULVWVVRPH WUXO\VWDQGRXW 7KHJUDSHYLQHVRI6SDLQ·V&DQDU\,V ODQGVDUHUDUHSUHFLRXVVXUYLYRUVIURP DQHFRORJLFDOGLVDVWHUWKDWIRUHYHU FKDQJHGWKHQDWXUHRIZRUOGZLQHPDN LQJ$GGLQJWRWKHGUDPDDOODURXQG WKHEHDXWLIXOLVODQGV\RXVHHHYLGHQFH RIDYLROHQWYROFDQLFSDVW6RPH PLOOLRQ\HDUVDJRODYDHUXSWHGWKURXJK WKH$WODQWLF2FHDQDQGELOOLRQVRIWRQV RIPDJPDIRUPHGLVODQGVOLNHVFDUWLV VXHRQWKH(DUWK·VVXUIDFH %XWWKHKLVWRU\WKDWPDNHVWKHVH LVODQGVVRVSHFLDOIRUZLQHLVPRUH UHFHQW&OLQJLQJRQWRDVKEODFNVRLOV DWRSKLOOVLGHVZLQGVZHSWE\WUDGH ZLQGV\RXÀQGYLQHVWKDWPDLQWDLQD OLYLQJOLQNZLWKDYLWLFXOWXUHWKDW$OH[ DQGHUWKH*UHDW%&²%& ZRXOGKDYHUHFRJQL]HG 1RRQHFRXOGKDYHSUHGLFWHGWKDW 6SDLQ·VGLVFRYHU\RI$PHULFDZRXOG XQOHDVKGHYDVWDWLRQRQWKHKLVWRULF YLQH\DUGVRIWKH2OG:RUOG<HWWKH DUULYDORIDORXVHDQXQZDQWHG$PHUL FDQLIHYHUWKHUHZDVRQHGLGH[DFWO\ _/$5(9,67$_635,1*,668(_ WKDW,WFDXVHGLUUHSDUDEOHGDPDJHWR (XURSH·VWKHQPRVWRIWKHZRUOG·V ZLQHLQGXVWU\7KHDFFLGHQWDOLQWUR GXFWLRQLQRID1RUWK$PHULFDQ EXJFDOOHG3K\OOR[HUDZUHFNHGIRUDOO WLPHDYLWLFXOWXUHWKDWKDGWDNHQWKRX VDQGVRI\HDUVWRSHUIHFW )URPWKHPRPHQWWKDWWLQ\DSKLGDU ULYHGLQ(XURSHLWEHJDQYRUDFLRXVO\ LQIHVWLQJYLQHVZLWKDQLQFXUDEOHURRW ZLWKHULQJGLVHDVH´7KH3K\OOR[HUD ORXVHLQGXFHVWKHYLQHWRUHMHFWLWVRZQ URRWVDQGKHQFHHIIHFWLYHO\FRPPLW VXLFLGHµH[SODLQHGZLQHH[SHUW+XJK -RKQVRQ7RRYHUFRPHWKLVEOLJKW JURZHUVKDYHKDGWRJUDIWYLQHVRQWR 3K\OOR[HUDUHVLVWDQWQRQ9LWLVYLQLIHUD $PHULFDQURRWVHYHUVLQFHLQHYLWDEO\ DOWHULQJDURPDVDQGÁDYRUV7KDWLV H[FHSWKHUHLQWKH&DQDU\,VODQGV ZKLFKKDYHUHPDLQHGPLUDFXORXVO\ IUHHRI3K\OOR[HUD %RGHJDHO*ULIR/DQ]DURWHLVRQHRI WKHROGHVWZLQHULHVLQ6SDLQ:LWKLQ LWVYLQH\DUGV\RXÀQG0RVFDWHOYLQHV VRROGWKH\FRXOGKDYHEHHQSODQWHG MXVWDIWHUWKHODVWHUXSWLRQ:LQHPDNHU 7RPiV0HVD*XDQFKHEHJDQZRUNLQJ KHUHLQ´:HDUHDEOHWRFXOWLYDWH DQGPDLQWDLQRXUROGKLVWRULFYDULHWLHV ZLWKRXWUHO\LQJRQSODQWDWLRQVIURP HOVHZKHUHµVDLG0HVD(O*ULIRPDNHV VRPHUHIUHVKLQJZKLWHZLQHVZKLFK DUHFRQVXPHGPDLQO\E\WRXULVWVYLVLW LQJWKHLVODQGV7KHUHDUHDOVRWKUHH VROHUDVW\OH&DQDU\ZLQHVIURP SHUFHQW0DOYDVtD7KHTXHHQVRIWKH UDQJHDUHYLQWDJHVDQGWZR EDUULFDVGDWLQJIURP7KHROGHU WZRFDQRFFDVLRQDOO\EHVDPSOHGDW WUDGHIDLUV6ROHUDLVDOPRVWPD KRJDQ\GDUNZLWKDURPDVRIÀJVDQG YLEUDQWRUDQJHSHHO,WVKXJHSDODWHLV DPD]LQJO\IXOORIOLIHZLWKDOX[XULRXV P\VWHU\WKDWRQO\DJHFRQIHUV %RGHJDV6WUDWYV/DQ]DURWHLVRQHRI WKH&DQDU\,VODQGV·ÁDJVKLSZLQHULHV :LQHPDNHU$OEHUWR*RQ]iOH]3ODV HQFLDERUQRQQHDUE\/D*RPHUD YLQLÀHVOLWHUV86OLT JDO´RIZKLFKSHUFHQWLVJURZQ E\RXUVHOYHVµ,QÀQLWHFDUHLVWDNHQ ZLWKPDQXDOO\VHOHFWHGJUDSHVNHSW LQDFKLOOHGFKDPEHURYHUQLJKWEHIRUH JHQWOHSUHIHUPHQWDWLYHFUXVKLQJ :KLWHJUDSHVDUH0DOYDVtDDQG'LHJR ZKLOHUHGVLQFOXGH7LQWD&RQHMHUDDQG /LVWiQ1HJURZLWK0RVFDWHOUHVHUYHG IRUVZHHW&DQDU\*UHDWHUYLQH\DUG DJHZLOOLPSURYHWKHVHZLQHV (OLVHR&DUEDOORLVDÀIWKJHQHUDWLRQ ZLQHPDNHURQ/D3DOPDWKHPRVW YHUGDQWRIWKHLVODQGV,WVEHDXW\DQG WUDQTXLOLW\DUHFHOHEUDWHGLQ0DGRQ QD·VVRQJ´/D,VOD%RQLWDµUHIHUULQJ WRLWVQLFNQDPHDPRQJLVODQGHUV ´$GHYDVWDWLQJÀUHIROORZHGE\ ODQGVOLGHSURYRNLQJÁRRGVODVKHGWKH LVODQGLQ$XJXVWDQG%RGHJDV &DUEDOOR'2/D3DOPDORVWWKHIHZ (QJDMDYLQHVKHKDGEHHQSURSDJDWLQJ &DUEDOOR·VVWDUZLQHLVDWUDGLWLRQDO 0DOYDVtDRIWKHW\SH6KDNHVSHDUH ZRXOGKDYHUHFRJQL]HG +DUROG+HFNOHLVDIRUHLJQFRUUH VSRQGHQWEDVHGLQ0DGULG+HKDV ZULWWHQRQ6SDQLVKJDVWURQRPLF FXOWXUHVLQFHKHZDVDVWXGHQWFRQ WULEXWLQJWRWKH%%&DQGPDJD]LQHV VXFKDV'HFDQWHU:LQH0DJD]LQH DQG:LQH6SLULWV